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M.S.B.A.Real Property Form No. 30 (2008)
<br /> Minnesota Vacant Lot Purchase Agreement--Single Dwelling PURCHASE AGREEMENT/PAGE 4 of 8
<br /> 276 for a title insurance policy and notify Seller of the application. Buyer shall have ten business days after receipt of the Commitment for Title Insurance
<br /> 277 to provide Seller with a copy of the Commitment and written Title Objections.Buyer shall be deemed to have waived any Title Objections not made
<br /> 278 within the ten day period above,except that this shall not operate as a waiver of Sellers covenant to deliver a statutory Warranty Deed,unless a
<br /> 279 Warranty Deed is not specified above. If Buyer obtains title insurance,Buyer is not waiving the right to obtain a good and marketable title of record
<br /> 280 from Seller,
<br /> 281 For the purposes of this Agreement,an"Objection to Title"or"Title Objection" is some title matter which fails to pass a title examination based
<br /> 282 upon Minnesota law and the Minnesota Title Standards promulgated by the Real Property Section of the Minnesota State Bar Association thereby
<br /> 283 rendering the title unmarketable and is a title matter which requires a remedial response by the Seller prior to or at dosing.
<br /> 284 An"Exception to Title"or"Title Exception"is some title matter which passes a title examination based upon Minnesota law and the Minnesota Title
<br /> 285 Standards;is generally regarded by title examiners as not rendering the title unmarketable and,which,because of its nature,is generally disclosed
<br /> 286 by title examiners to the recipient of the title opinion or title insurance commitment.
<br /> 287
<br /> 288 B. ABSTRACT LOST OR UNAVAILABLE: TITLE INSURANCE BY SELLER. If Seller is unable to find the Abstract of Title or if Seller did not
<br /> 289 receive an Abstract of Title when Seller purchased the Property,then,to demonstrate that Sellers title is insurable for marketability and subject to
<br /> 290 only those matters disclosed at Paragraph 6.,above,within a reasonable time after acceptance of this Agreement,Seller shall furnish Buyer with
<br /> 291 a Commitment for Title Insurance including proper searches covering bankruptcies and state and federal judgments,federal court judgment liens
<br /> 292 in favor of the U.S., liens,and levied and pending special assessments. [Seller see Advisory below.]The Commitment shall be obtained from
<br /> 293 [select one]
<br /> 294 a The title insurer of Buyers choice;or,
<br /> 295 The same title insurer that issued title insurance to Seller so that Seller may obtain a reissue credit from the insurer.
<br /> 296 The Commitment shall contain the insurers requirements for deleting these exceptions in the owners policy(except for those matters accepted by
<br /> 297 Buyer in this Agreement):
<br /> 298 (1) Rights or claims of parties in possession,not shown by the public records
<br /> 299 (2) Easements,or claims of easements,not shown by the public records:
<br /> 300 (3) Discrepancies,conflicts in boundary lines,shortage in area,encroachments,and any facts which a correct survey and inspection of the
<br /> 301 premises would disclose and which are not shown by the public records:and,
<br /> 302 (4) Any lien,or right to a lien,for services,labor or material furnished,imposed by law and not shown by the public records.
<br /> 303 Seller shall provide to Buyer and to the title insurer all documents[except a survey,unless Seller is required by other provisions of this Agreement
<br /> 304 to provide a survey]necessary to enable the title insurer to delete these exceptions from the owners policy of title insurance. Buyer shall have ten
<br /> 305 business days after receipt of the Commitment for Title Insurance to provide Sellerwith a copy ofthe Commitment and written Title Objections.Buyer
<br /> 306 shall be deemed to have waived any Title Objections not made within the ten day period above,except that this shall not operate as a waiver of
<br /> 307 Sellers covenant to deliver a statutory Warranty Deed,unless a Warranty Deed is not specified above. By agreeing to receive title insurance in lieu
<br /> 308 of an Abstract,Buyer is not waiving the right to obtain a good and marketable title of record from Seller. [Buyer.see Advisory below.]
<br /> 309 Select one of the following:
<br /> 310 0 The Commitment shall be accompanied by,at Sellers expense,the insurer's agreement(or the separate agreement ofa Minnesota-licensed
<br /> 311 abstracter)to provide Buyer with an Abstract of Title at any time in the future. The abstract to be provided shall be at no cost to Buyer for
<br /> 312 all abstracting through the date of recording of the instrument of conveyance contemplated by this Purchase Agreement. Seller shall pay
<br /> 313 all commitment, abstracting,examination,searches,and title insurance costs,including the premium for the owners policy and excluding
<br /> 314 the premium for the lenders policies.
<br /> 315 Ox The Commitment will not include the insurers or abstracters agreement to provide Buyer with an Abstract of Title at any time at no cost to
<br /> 316 Buyer.Seller shall pay all commitment,abstracting,examination,searches,and title insurance costs including the premiums for the owners
<br /> 317 and the lenders policy.
<br /> 318 ADVISORY TO SELLER:You should consult with your lawyer about the comparative costs of paying an abstract company to produce a
<br /> 319 new Abstract of Title versus paying the Buyer's title insurance costs. In many Minnesota counties,it is less expensive to obtain a new
<br /> 320 Abstract
<br /> 321 ADVISORY TO BUYER:You should consult with your lawyer about the relative merits of receiving an Abstract of Title versus receiving a
<br /> 322 title insurance policy. As a future seller of the same property,you likely will be asked to give your buyer an Abstract If your Seller does
<br /> 323 not obtain the title insurance endorsement for future production of an Abstract,you might be facing a large expense when you sell.
<br /> 324
<br /> 325 15.TITLE CORRECTIONS AND REMEDIES.Seller shall have a limited time,from receipt of Buyers written Title Objections,to make title marketable.
<br /> 326 Upon receipt of Buyers Title Objections,Seller shall,within ten business days,give Notice to Buyer of Sellers intention to make title marketable within
<br /> 327 the title-clearing cure period selected in C.(1)or C.(2)below. Liens or encumbrances for liquidated amounts which can be released by payment or
<br /> 328 escrow from proceeds of closing shall not delay the closing.Cure of the defects by Seller shall be reasonable,diligent,and prompt.Pending correction
<br /> 329 of title,all payments required herein and the closing shall be postponed.
<br /> 330
<br /> 331 As an alternative to making title good and marketable of record,Seller may,within the ten day Notice period,make a written,dated offer to Buyer to
<br /> 332 obtain title insurance for Buyer with insuring provisions acceptable to Buyer(and,if applicable,Buyers lender),as follows:
<br /> 333 • Seller may procure,at Sellers expense,an owners policy of title insurance,from an insurer registered and licensed to do business in Minnesota
<br /> 334 and acceptable to Buyer,specifically insuring over the Title Objections;or,
<br /> 335 • If the Title Objections are stated in a title insurance commitment which Buyer has obtained,Seller may provide the insurer with such documents
<br /> 336 and escrows as are necessary to allow the insurer to specifically insure over the Title Objections and agree to pay all of the insurers charges
<br /> 337 for issuing the owners policy to Buyer.
<br /> 338 Under either of these title insuring alternatives,"at Sellers expense"and"pay all of the insurer's charges"mean that Seller will pay all title insurance
<br /> 339 commitment and policy premium charges,search charges,plat drawing fees,and any other charge by the insurer to issue the owners policy,but not
<br /> 340 the premium for a lenders policy,if any.If Buyer accepts Sellers offer of an insurable title,then in this Purchase Agreement,"making title marketable"
<br /> 341 shall mean "making title insurable,"in the manner described above. Buyer is under no obligation to accept Sellers offer of an insurable title in lieu
<br /> 342 of a good and marketable title of record,but,if Buyer does not reject Sellers offer of an insurable title within three(3)business days of receiving Seller's
<br /> 343 offer,Buyer shall be deemed to have accepted Sellers offer of an insurable title. If Buyer rejects Sellers offer to make title insurable,Seller shall then
<br /> 344 make title good and marketable of record and shall be subject to the provisions of this agreement for failure to timely present good and marketable
<br /> 345 title of record.
<br /> 346 A. If Notice is given and Seller makes title marketable,then upon presentation to Buyer and proposed lender of documentation establishing that
<br /> 347 title has been made marketable,and if not objected to in writing and within 5 business days of receipt of Sellers documentation,the closing shall
<br /> 348 take place within ten business days or on the scheduled closing date,whichever is later.
<br /> 349 B. If Seller does not give Notice of intention to make title marketable within ten business days after receipt of Buyers Title Objections,this Purchase
<br /> 350 Agreement is canceled and the earnest money shall be refunded to Buyer.
<br /> 351 C. Selection of Title-Clearing Cure Period. (C.(1)and C.(2)are alternative remedies. ONLY ONE OF THEM CAN APPLY FOR THIS
<br /> 352 PURCHASE AGREEMENT.Ifeitherparty cannot endure more than a 30 to 45 day delay for the closing,select C.(1).If both parties can
<br /> 353 endure a longer delay for the closing,select C.(2). SELECT ONLY C.(1)OR C.(2).] IF THE PARTIES DO NOT SELECT C.(1)OR C.(2),
<br /> 354 BY CHECKING ONE OF THE BOXES BELOW,THEN C.(1)AUTOMATICALLY APPLIES ASA TERM FOR THIS PURCHASE AGREEMENT.
<br /> 355 [x C.(1)is selected as a remedy for this Purchase Agreement.
<br /> 356 (1) Seller shall have 30 days from receipt of Buyers written Title Objections or until the Date of Closing,whichever dale is later,to make title
<br /> 357 marketable. If Notice is given but the slated period expires without title being made marketable,Buyer may:
<br /> 358 (a) Cancel this Purchase Agreement by notice to Seller pursuant to Minnesota Statutes Section 559.217,Subd.3(allowing Seller a 15
<br /> 359 day right to cure)and neither party shall be liable for damages hereunder to the other,and the earnest money shall be refunded to
<br /> 360 Buyer;or,
<br /> 361 (b) Elect to take title subject to some or all of the Title Objections.
<br /> 362 Q C.(2)is selected as a remedy for this Purchase Agreement.
<br /> 363 (2) Seller shall have[select one] 60 190/120 days from receipt of Buyers written Title Objections or until the Date of Closing,whichever
<br /> 364 date is later,to make title marketable If Notice is given but the staled period expires without title being made marketable,Buyer may seek,
<br /> 365 as permitted by law,one or more of the following:
<br /> 366 (a) Proceed to closing without waiver or merger in the Deed of the Title Objections and without waiver of any remedies,and may:
<br /> 367 (i) Seek damages,costs,and reasonable lawyers fees from Seller as permitted bylaw(damages under this subparagraph(i)shall
<br /> 368 be limited to the cost of curing Title Objections,and consequential damages are excluded);or
<br /> 369 (ii) Undertake proceedings to correct the Title Objections;
<br /> 370 (b) Rescission of this Purchase Agreement by notice to Seller,in which case all earnest money paid shall be refunded to Buyer;
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