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M.S.B.A. Real Property Form No. 8 (1997, 2017)
<br />Addendum to Purchase Agreement: Wetlands, Shoreland and Flood Plain Disclosure PAGE 4
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<br />[_](2) Buyer is Relying on Seller’s Affirmative Representations. The price offered by Buyer in this140
<br />Purchase Agreement reflects that Buyer is relying upon Seller’s affirmative representations that the land141
<br />and improvements are affected by the presence of wetlands, flood plain, or shoreland only as indicated142
<br />by Seller above. Buyer's obligation to close under this Purchase Agreement is contingent upon Buyer143
<br />verifying, at Buyer's expense, that wetlands, flood plain, or shoreland are as represented by Seller. 144
<br />Buyer’s investigation to satisfy this contingency is limited to any combination of the following: (i)145
<br />physical inspection of the property; (ii) inspection of available, local public records; (iii) survey; or, (iv)146
<br />written determination by the local governmental unit having jurisdiction over any wetlands, flood plain,147
<br />or shoreland. Buyer’s investigation shall be completed by the later of [deadline date]148
<br />______________________, or 10 days after buyer’s receipt of written determination by the local149
<br />governmental unit having jurisdiction over any wetlands, flood plain, or shoreland or this contingency150
<br />shall be deemed waived.151
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<br />If Buyer’s investigation reveals a wetland, shoreland, or flood plain and shows that 153
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<br />a. wetlands, flood plain, or shoreland are not as represented above by Seller; or;155
<br />b. existing improvements are nonconforming under current wetlands, flood plain, or shoreland156
<br />regulations; or,157
<br />c. future improvements cannot be constructed as planned under wetlands, flood plain, or158
<br />shoreland regulations; or,159
<br />d. a mortgage cannot be placed without obtaining flood insurance; 160
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<br />then, at least 10 days before the Date of Closing or within 10 days after completion of Buyer’s162
<br />investigation, whichever is later, Buyer shall notify Seller of these circumstances, and, prior to closing,163
<br />Buyer may, at Buyer’s option, elect one or more of the solutions at (1), (2), and (3), or Buyer may elect164
<br />(4): [strike out any of the following that are not appropriate]165
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<br />(1) Offer to reduce the price of the property to a value that reflects the presence of wetlands,167
<br />shoreland, or flood plain and/or the nonconforming status of existing improvements; or,168
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<br />(2) In the case of nonconforming status for existing improvements, accept the property at170
<br />the stated price provided seller can obtain a recordable, nonrevocable zoning certificate171
<br />or its functional equivalent from the local governmental unit having jurisdiction over any172
<br />wetlands, flood plain, or shoreland indicating that the improvements may be173
<br />reconstructed at any time during the next 30 years in the event of partial or total174
<br />destruction from any cause and that they may be reconstructed at their present size,175
<br />location and elevation; or,176
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<br />(3) In the case of a flood plain, if flood insurance in available, offer to amend the Purchase178
<br />Agreement to reduce the price by the present value of flood insurance premiums, with179
<br />current "replacement cost" endorsement, paid over a 30-year period on the full value of180
<br />the improvements (present value calculation to use the interest rate currently paid on181
<br />simple savings accounts at Norwest Bank Minnesota, N.A.) or accept Seller’s payment at182
<br />closing of a single, 30-year flood insurance premium, with current "replacement cost"183
<br />endorsement; or,184
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<br />(4) Terminate this Purchase Agreement and receive a full refund of the earnest money, in186
<br />which case, Seller shall reimburse Buyer for all expenses incurred by Buyer pursuant to187
<br />this Purchase Agreement, including but not limited to all expenses incurred in attempting188
<br />to satisfy any of Buyer’s contingencies and for all expenses of survey and Buyer shall189
<br />assign all rights in and to the survey to Seller.190
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