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Copyright 2015 © Tennessee Realtors® Version 01/01/2018

RF401 – Purchase and Sale Agreement, of 10

This form is copyrighted and may only be used in real estate transactions in which ___________________________________________ is involved as a TAR authorized user. Unauthorized use of the form may result in legal sanctions being brought against the user and should be reported to the Tennessee Association of Realtors® at (615) 321-1477.

PURCHASE AND SALE AGREEMENT

1. Purchase and Sale. For and in consideration of the mutual covenants herein and other good and valuable consideration, 1 the receipt and sufficiency of which is hereby acknowledged, the undersigned buyer 2 _______________________________________________________________________ (“Buyer”) agrees to buy and the 3 undersigned seller _________________________________________________________________________ (“Seller”) 4 agrees to sell all that tract or parcel of land, with such improvements as are located thereon, described as follows: 5 All that tract of land known as: _______________________________________________________________________ 6 (Address) _______________________________________ (City), Tennessee, __________ (Zip), as recorded in 7 _____________________________ County Register of Deeds Office, _________ deed book(s), _________ page(s), 8 and/or ______________________________________ instrument number and as further described as: 9 ___________________________________________________________________________________ together with all 10 fixtures, landscaping, improvements, and appurtenances, all being hereinafter collectively referred to as the “Property.” 11 A. INCLUDED as part of the Property (if present): all attached light fixtures and bulbs including ceiling fans; 12

permanently attached plate glass mirrors; heating, cooling, and plumbing fixtures and equipment; all doors, storm 13 doors and windows; all window treatments (e.g., shutters, blinds, shades, curtains, draperies) and hardware; all wall-14 to-wall carpet; range; all built-in kitchen appliances; all bathroom fixtures and bathroom mirrors; all gas logs, 15 fireplace doors and attached screens; all security system components and controls; garage door opener and all (at 16 least ____) remote controls; an entry key; swimming pool and its equipment; awnings; permanently installed 17 outdoor cooking grills; all landscaping and all outdoor lighting; mailbox(es); attached basketball goals and 18 backboards; TV mounting brackets (but excluding flat screen TVs); antennae and satellite dishes (excluding 19 components); and central vacuum systems and attachments. 20

B. Other items that REMAIN with the Property at no additional cost to Buyer: 21 _________________________________________________________________________________________________ 22 _________________________________________________________________________________________________ 23 _________________________________________________________________________________________________ 24 25 C. Items that WILL NOT REMAIN with the Property: 26 _________________________________________________________________________________________________ 27 _________________________________________________________________________________________________ 28 D. LEASED ITEMS: Leased items that remain with the Property: (e.g., security systems, water softener systems, fuel 29

tank, etc.): ____________________________________________________________________________________. 30 Buyer shall assume any and all lease payments as of Closing. If leases are not assumable, the balance shall be paid 31

in full by Seller at or before Closing. 32 □ Buyer does not wish to assume a leased item. (THIS BOX MUST BE CHECKED IN ORDER FOR IT TO 33

BE A PART OF THIS AGREEMENT.) 34 Buyer does not wish to assume Seller’s current lease of ____________________________________________; 35 therefore, Seller shall have said lease cancelled and leased items removed from Property prior to Closing. 36

E. FUEL: Fuel, if any, will be adjusted and charged to Buyer and credited to Seller at Closing at current market prices. 37

2. Purchase Price, Method of Payment and Closing Expenses. Buyer warrants that, except as may be otherwise 38 provided herein, Buyer will at Closing have sufficient cash to complete the purchase of the Property under the terms of 39 this Purchase and Sale Agreement (hereinafter “Agreement”). The purchase price to be paid is: 40 $____________________, ________________________________________________________________ U.S. Dollars, 41 (“Purchase Price”) which shall be disbursed to Seller or Seller’s Closing Agency by one of the following methods: 42

i. a Federal Reserve Bank wire transfer; 43 ii. a Cashier’s Check issued by a financial institution as defined in 12 CFR § 229.2(i); OR 44

iii. other such form as is approved in writing by Seller. 45 A. Financial Contingency – Loan(s) To Be Obtained. This Agreement is conditioned upon Buyer’s ability to obtain 46

a loan(s) in the principal amount up to _________% of the Purchase Price listed above to be secured by a deed of 47 trust on the Property. “Ability to obtain” as used herein means that Buyer is qualified to receive the loan described 48




herein based upon Lender’s customary and standard underwriting criteria. In consideration of Buyer, having acted 49 in good faith and in accordance with the terms below, being unable to obtain financing by the Closing Date, the 50 sufficiency of such consideration being hereby acknowledged, Buyer may terminate this Agreement by providing 51 written notice via the Notification form or equivalent written notice. Seller shall have the right to request any 52 supporting documentation regarding loan denial. Upon termination, Buyer is entitled to a refund of the Earnest 53 Money/Trust Money. Lender is defined herein as the financial institution funding the loan. 54 The loan shall be of the type selected below (Select the appropriate boxes. Unselected items will not be part of 55 this Agreement): 56

□ Conventional Loan □ FHA Loan; attach addendum 57 □ VA Loan; attach addendum □ Other _____________________________________________ 58

Buyer may apply for a loan with different terms and conditions and also Close the transaction provided all other 59 terms and conditions of this Agreement are fulfilled, and the new loan does not increase any costs charged to Seller. 60 Buyer shall be obligated to Close this transaction if Buyer has the ability to obtain a loan with terms as described 61 herein and/or any other loan for which Buyer has applied and been approved. 62

Loan Obligations: The Buyer agrees and/or certifies as follows: 63 (1) Within three (3) days after the Binding Agreement Date, Buyer shall make application for the loan and 64

shall pay for credit report. Buyer shall immediately notify Seller or Seller’s representative of having 65 applied for the loan and provide Lender’s name and contact information, and that Buyer has instructed 66 Lender to order credit report. Such certifications shall be made via the Notification form or equivalent 67 written notice; 68

(2) Within fourteen (14) days after the Binding Agreement Date, Buyer shall warrant and represent to Seller 69 via the Notification form or equivalent written notice that: 70

a. Buyer has secured evidence of hazard insurance which will be effective at Closing and Buyer shall 71 notify Seller of the name of the hazard insurance company; 72

b. Buyer has notified Lender of an Intent to Proceed and has available funds to Close per the signed 73 Loan Estimate; and 74

c. Buyer has requested that the appraisal be ordered and affirms that the appraisal fee has been paid. 75 (3) Buyer shall pursue qualification for and approval of the loan diligently and in good faith; 76 (4) Buyer shall continually and immediately provide requested documentation to Lender and/or loan 77

originator; 78 (5) Unless otherwise stated in this Agreement, Buyer represents that this loan is not contingent upon the lease 79

or sale of any other real property and the same shall not be used as the basis for loan denial; and 80 (6) Buyer shall not intentionally make any material changes in Buyer’s financial condition which would 81

adversely affect Buyer’s ability to obtain the Primary Loan or any other loan referenced herein. 82 Should Buyer fail to timely comply with section 2.A.(1) and/or 2.A.(2) above and provide notice as required, Seller 83 may make written demand for compliance via the Notification form or equivalent written notice. If Buyer does not 84 furnish Seller the requested documentation within two (2) days after such demand for compliance, Buyer shall be 85 considered in default and Seller’s obligation to sell is terminated. 86

□ B. Financing Contingency Waived (THIS BOX MUST BE CHECKED TO BE PART OF THIS AGREEMENT.) 87 (e.g. “All Cash”, etc.): Buyer’s obligation to close shall not be subject to any financial contingency. Buyer reserves 88 the right to obtain a loan. Buyer will furnish proof of available funds to close in the following manner: 89 _____________________________________ (e.g. bank statement, Lender’s commitment letter) within five (5) 90 days after Binding Agreement Date. Should Buyer fail to do so, Seller may make written demand for compliance 91 via the Notification form or equivalent written notice. If Buyer does not furnish Seller with the requested notice 92 within two (2) days after such demand for compliance, Buyer shall be considered in default and Seller’s obligation 93 to sell is terminated. Failure to Close due to lack of funds shall be considered default by Buyer. 94

In the event this Agreement is contingent upon an appraisal (See Paragraph 2.C. below), Buyer must order the 95 appraisal and provide Seller with the name and telephone number of the appraisal company and proof that appraisal 96 was ordered within five (5) days of the Binding Agreement Date. Should Buyer fail to do so, Seller may make 97 written demand for compliance via the Notification form or equivalent written notice. If Buyer does not furnish 98 Seller with the requested notice within two (2) days after such demand for compliance, Buyer shall be considered in 99 default and Seller’s obligation to sell is terminated. 100

C. Appraisal (Select either 1 or 2 below. The sections not checked are not a part of this Agreement). 101 □ 1. This Agreement IS NOT contingent upon the appraised value either equaling or exceeding the agreed upon 102 Purchase Price. 103




□ 2. This Agreement IS CONTINGENT upon the appraised value either equaling or exceeding the agreed 104 upon Purchase Price. If the appraised value is equal to or exceeds Purchase Price, this contingency is 105 satisfied. In consideration of Buyer having conducted an appraisal, the sufficiency of such consideration 106 being hereby acknowledged, if the appraised value of the Property does not equal or exceed the Purchase 107 Price, Buyer shall promptly notify the Seller via the notification form or written equivalent notice. Buyer 108 shall then have 3 days to either: 109

1. waive the appraisal contingency via the notification form or equivalent written notice 110 OR 111

2. terminate the agreement by giving notice to seller via the notification form or equivalent written 112 notice. Upon timely termination, Buyer is entitled to a refund of the Earnest money. 113

In the event buyer fails to either waive the appraisal or terminate the agreement as set forth above, this 114 contingency shall be deemed satisfied. Thereafter, failure to appraise shall not be used as the basis for loan 115 denial or termination of contract. Seller shall have the right to request any supporting documentation 116 showing appraised value did not equal or exceed the agreed upon purchase price. 117

D. Closing Expenses. 118 1. Seller Expenses. Seller shall pay all existing loans and/or liens affecting the Property, including all penalties, 119

release preparation costs, and applicable recording costs; any accrued and/or outstanding association dues or 120 fees; fee (if any) to obtain lien payoff/estoppel letters/statement of accounts from any and all associations, 121 property management companies, mortgage holders or other liens affecting the Property; Seller’s closing fee, 122 document preparation fee and/or attorney’s fees; fee for preparation of deed; notary fee on deed; and financial 123 institution (Bank, Credit Union, etc.) wire transfer fee or commercial courier service fee related to the 124 disbursement of any lien payoff(s). Seller additionally agrees to permit any withholdings and/or to pay any 125 additional sum due as is required under the Foreign Investment in Real Property Tax Act. Failure to do so will 126 constitute a default by Seller. 127

In the event Seller is subject to Tax Withholding as required by the Foreign Investment in Real Property 128 Tax Act, (hereinafter “FIRPTA”), Seller additionally agrees that such Tax Withholding must be collected 129 from Seller by Buyer’s Closing Agent at the time of Closing. In the event Seller is not subject to FIRPTA, 130 Seller shall be required as a condition of Closing to sign appropriate affidavits certifying that Seller is not 131 subject to FIRPTA. It is Seller’s responsibility to seek independent tax advice or counsel prior to the Closing 132 Date regarding such tax matters. 133

2. Buyer Expenses. Buyer shall pay all transfer taxes and recording fees on deed of conveyance and deed of trust; 134 Buyer’s closing fee, document preparation fee and/or attorney’s fees; preparation of note, deed of trust, and 135 other loan documents; mortgage loan inspection or boundary line survey; credit report; required premiums for 136 private mortgage, hazard and flood insurance; required reserved deposits for insurance premiums and taxes; 137 prepaid interest; re-inspection fees pursuant to appraisal; insured Closing Protection Letter; association fees as 138 stated within paragraph 4.E.; and any costs incident to obtaining and closing a loan, including but not limited to: 139 appraisal, origination, discount points, application, commitment, underwriting, document review, courier, 140 assignment, photo, tax service, notary fees, and any wire fee or other charge imposed for the disbursement of 141 the Seller’s proceeds according to the terms of this Agreement. 142

3. Title Expenses. Cost of title search, mortgagee's policy and owner's policy (rates to be as filed with the 143 Tennessee Department of Commerce and Insurance) shall be paid as follows: 144 _________________________________________________________________________________________. 145

Simultaneous issue rates shall apply. 146 Not all of the above items (Seller Expenses, Buyer Expenses and Title Expenses) are applicable to every 147 transaction and may be modified as follows: 148 _________________________________________________________________________________________________149 _________________________________________________________________________________________________ 150 Closing Agency for Buyer: ______________________________________________________________________ 151 Closing Agency for Seller: ______________________________________________________________________ 152

3. Earnest Money/Trust Money. Buyer has paid or will pay within _______ days after the Binding Agreement Date to 153 _________________________________________________________________ (name of Holder) (“Holder”) located at 154 _________________________________________________________________ (address of Holder), a Earnest 155 Money/Trust Money deposit of $_______________ by check (OR 156 _____________________________________________) (“Earnest Money/Trust Money”). 157 A. Failure to Receive Earnest Money/Trust Money. In the event Earnest Money/Trust Money (if applicable) is not 158

timely received by Holder or Earnest Money/Trust Money check or other instrument is not honored for any reason 159




by the bank upon which it is drawn, Holder shall promptly notify Buyer and Seller of the Buyer’s failure to deposit 160 the agreed upon Earnest Money/Trust Money. Buyer shall then have one (1) day to deliver Earnest Money/Trust 161 Money in immediately available funds to Holder. In the event Buyer does not deliver such funds, Buyer is in default 162 and Seller shall have the right to terminate this Agreement by delivering to Buyer or Buyer’s representative written 163 notice via the Notification form or equivalent written notice. In the event Buyer delivers the Earnest Money/Trust 164 Money in immediately available funds to Holder before Seller elects to terminate, Seller shall be deemed to have 165 waived his right to terminate, and the Agreement shall remain in full force and effect. 166

B. Handling of Earnest Money/Trust Money upon Receipt by Holder. Earnest Money/Trust Money (if applicable) 167 is to be deposited promptly after the Binding Agreement Date or the agreed upon delivery date in this Earnest 168 Money/Trust Money paragraph or as specified in the Special Stipulations paragraph contained at paragraph 19 169 herein. Holder shall disburse Earnest Money/Trust Money only as follows: 170

(a) at Closing to be applied as a credit toward Buyer’s Purchase Price; 171 (b) upon a written agreement signed by all parties having an interest in the funds; 172 (c) upon order of a court or arbitrator having jurisdiction over any dispute involving the Earnest 173

Money/Trust Money; 174 (d) upon a reasonable interpretation of the Agreement; or 175 (e) upon the filing of an interpleader action with payment to be made to the clerk of the court having 176

jurisdiction over the matter. 177 Holder shall be reimbursed for, and may deduct from any funds interpleaded, its costs and expenses, including 178 reasonable attorney’s fees. The prevailing party in the interpleader action shall be entitled to collect from the other 179 party the costs and expenses reimbursed to Holder. No party shall seek damages from Holder (nor shall Holder be 180 liable for the same) for any matter arising out of or related to the performance of Holder’s duties under this Earnest 181 Money/Trust Money paragraph. Earnest Money/Trust Money shall not be disbursed prior to fourteen (14) days after 182 deposit unless written evidence of clearance by bank is provided. 183

4. Closing, Prorations, Special Assessments and Warranties Transfer. 184 A. Closing Date. This transaction shall be closed (“Closed”) (evidenced by delivery of warranty deed and payment of 185

Purchase Price, the “Closing”), and this Agreement shall expire, at 11:59 p.m. local time on the _______ day of 186 _________________________, __________(“Closing Date”), or on such earlier date as may be agreed to by the 187 parties in writing. Such expiration does not extinguish a party’s right to pursue remedies in the event of default. 188 Any extension of this date must be agreed to by the parties in writing via the Closing Date/Possession Date 189 Amendment or equivalent written agreement. 190 1. Possession. Possession of the Property is to be given (Select the appropriate boxes below. Unselected items 191

will not be part of this Agreement): 192 □ at Closing as evidenced by delivery of warranty deed and payment of Purchase Price; 193

OR 194 □ as agreed in the attached and incorporated Temporary Occupancy Agreement; 195 B. Prorations. Real estate taxes, rents, dues, maintenance fees, and association fees on said Property for the calendar 196

year in which the sale is Closed shall be prorated as of the Closing Date. In the event of a change or reassessment of 197 taxes for the calendar year after Closing, the parties agree to pay their recalculated share. Real estate taxes, rents, 198 dues, maintenance fees, and association fees for prior years and roll back taxes, if any, will be paid by Seller. 199

C. Special Assessments. Special assessments approved or levied prior to the Closing Date shall be paid by the Seller 200 at or prior to Closing unless otherwise agreed as follows: 201 _____________________________________________________________________________________________. 202

D. Warranties Transfer. Seller, at the option of Buyer and at Buyer’s cost, agrees to transfer Seller’s interest in any 203 manufacturer’s warranties, service contracts, termite bond or treatment guarantee and/or similar warranties which by 204 their terms may be transferable to Buyer. 205

E. Association Fees. Buyer shall be responsible for all homeowner or condominium association transfer fees, related 206 administration fees (not including statement of accounts), capital expenditures/contributions incurred due to the 207 transfer of Property and/or like expenses which are required by the association, property management company 208 and/or the bylaws, declarations or covenants for the Property (unless otherwise specifically addressed herein and/or 209 unless specifically chargeable to Seller under applicable bylaws, declarations, and/or neighborhood covenants). 210

5. Title and Conveyance. 211 A. Seller warrants that at the time of Closing, Seller will convey or cause to be conveyed to Buyer or Buyer’s assign(s) 212

good and marketable title to said Property by general warranty deed, subject only to: 213 (1) zoning; 214




(2) setback requirements and general utility, sewer, and drainage easements of record on the Binding 215 Agreement Date upon which the improvements do not encroach; 216

(3) subdivision and/or condominium declarations, covenants, restrictions, and easements of record on the 217 Binding Agreement Date; and 218

(4) leases and other encumbrances specified in this Agreement. 219 If title examination, closing or loan survey pursuant to Tenn. Code Ann. § 62-18-126, boundary line survey, or other 220 information discloses material defects, Buyer may, at Buyer's discretion: 221

(1) accept the Property with the defects OR 222 (2) require Seller to remedy such defects prior to the Closing Date. Buyer shall provide Seller with written 223

notice of such defects via the Notification form or equivalent written notice. If defects are not remedied 224 prior to Closing Date, Buyer and Seller may elect to extend the Closing Date by mutual written agreement 225 evidenced by the Closing Date/Possession Amendment form or other written equivalent. If defects are not 226 remedied by the Closing Date or any mutually agreed upon extension thereof, this Agreement shall 227 terminate, and Buyer shall be entitled to refund of Earnest Money/Trust Money. 228

Good and marketable title as used herein shall mean title which a title insurance company licensed to do business in 229 Tennessee will insure at its regular rates, subject only to standard exceptions. The title search or abstract used for 230 the purpose of evidencing good and marketable title must be acceptable to the title insurance agent and the issuing 231 title insurance company. Seller agrees to execute such appropriate affidavits and instruments as may be required by 232 the issuing title insurance company. 233

B. Deed. Deed is to be made in the name of ___________________________________________________________. 234 The manner in which Buyer takes title determines ownership and survivorship rights. It is the Buyer’s responsibility 235 to consult the closing agency or attorney prior to Closing. 236

6. Lead-Based Paint Disclosure (Select the appropriate box. Items not selected are not part of this Agreement). 237 □ does not apply. □ does apply (Property built prior to 1978). 238

7. Inspections. 239 A. Buyer’s Right to Make Inspection(s). All inspections/reports, including but not limited to the home inspection 240

report, those required/recommended in the home inspection report, Wood Destroying Insect Infestation 241 Inspection Report, septic inspection and well water test, are to be made at Buyer's expense, unless otherwise 242 stipulated in this Agreement. The parties hereto agree that in the event Buyer shall elect to contract with a third 243 party inspector to obtain a “Home Inspection” as defined by Tennessee law, said inspection shall be conducted by a 244 licensed Home Inspector. However, nothing in this paragraph shall preclude Buyer from conducting any inspections 245 on his/her own behalf, nor shall it preclude Buyer from retaining a qualified (and if required by law, licensed) 246 professional to conduct inspections of particular systems or issues within such professional’s expertise or licensure, 247 including but not limited to inspection of the heating/cooling systems, electrical systems, foundation, etc., so long as 248 said professional is not in violation of Tenn. Code Ann. § 62-6-301, et seq. as may be amended. Seller shall cause 249 all utility services and any pool, spa, and similar items to be operational so that Buyer may complete all 250 inspections and tests under this Agreement. Buyer agrees to indemnify Seller from the acts of himself, his 251 inspectors and/or representatives in exercising his rights under this Purchase and Sale Agreement. Buyer’s 252 obligations to indemnify Seller shall also survive the termination of this Agreement by either party, which shall 253 remain enforceable. Buyer waives any objections to matters of purely cosmetic nature (e.g. decorative, color or 254 finish items) disclosed by inspection. Buyer has no right to require repairs or alterations purely to meet 255 current building codes, unless required to do so by governmental authorities. 256

B. Initial Inspections. Buyer and/or his inspectors/representatives shall have the right and responsibility to enter the 257 Property during normal business hours, for the purpose of making inspections and/or tests of the Property. Buyer 258 and/or his inspectors/representatives shall have the right to perform a visual analysis of the condition of the 259 Property, any reasonably accessible installed components, the operation of the Property’s systems, including any 260 controls normally operated by Seller including the following components: heating systems, cooling systems, 261 electrical systems, plumbing systems, structural components, foundations, roof coverings, exterior and interior 262 components, any other site aspects that affect the Property, and environmental issues. 263

C. Wood Destroying Insect Infestation Inspection Report. If desired by Buyer or required by Buyer’s Lender, it 264 shall be Buyer’s responsibility to obtain at Buyer’s expense a Wood Destroying Insect Infestation Inspection Report 265 (the “Report”), which shall be made by a Tennessee licensed and chartered pest control operator. 266 The foregoing expense may be subject to governmental guidelines relating to VA Loans (See VA/FHA Loan 267 Addendum if applicable). 268




The inspection shall include each dwelling, garage, and other permanent structure on the Property excluding 269 _____________________________________________________ for evidence of active infestation and/or damage. 270 Buyer shall cause such Report to be delivered to Seller simultaneously with any repairs requested by the Buyer or 271 the end of the Inspection Period, whichever is earlier. If the Report indicates evidence of active infestation, Seller 272 agrees to treat infestation at Seller’s expense and provide documentation of the treatment to Buyer prior to Closing. 273 Requests for repair of damage, if any, should be addressed in the Buyer's request for repairs pursuant to 274 Subparagraph 8.D., Buyer’s Inspection and Resolution below. 275

D. Buyer’s Inspection and Resolution. Within ________ days after the Binding Agreement Date (“Inspection 276 Period”), Buyer shall cause to be conducted any inspection provided for herein, including but not limited to the 277 Wood Destroying Insect Infestation Inspection Report AND shall provide written notice of such to Seller as 278 described below. In the event Buyer fails to timely make such inspections and respond within said timeframe as 279 described herein, the Buyer shall have forfeited any rights provided under this Section 7, and in such case shall 280 accept the Property in its current condition, normal wear and tear excepted. 281

In said notice Buyer shall either: 282 (1) In consideration of Buyer having conducted Buyer’s good faith inspections as provided for herein, the 283

sufficiency of such consideration being hereby acknowledged, Buyer shall furnish Seller with a list of 284 written specified objections and immediately terminate this Agreement via the Notification form or 285 equivalent written notice. All Earnest Money/Trust Money shall be returned to Buyer upon termination. 286

OR 287 (2) accept the Property in its present “AS IS” condition with any and all faults and no warranties expressed or 288

implied via the Notification form or equivalent written notice. Seller has no obligation to make repairs. 289 OR 290

(3) furnish Seller a written list of items which Buyer requires to be repaired and/or replaced with like quality or 291 value in a professional and workmanlike manner. Seller shall have the right to request any supporting 292 documentation that substantiates any item listed. 293

a. Resolution Period. Seller and Buyer shall then have a period of ______ days following receipt of 294 the above stated written list (“Resolution Period”) to reach a mutual agreement as to the items to 295 be repaired or replaced with like quality or value by Seller, which shall be evidenced by the 296 Repair / Replacement Amendment or written equivalent(s). The parties agree to negotiate repairs 297 in good faith during the Resolution Period. In the event Seller and Buyer do not reach a mutual 298 written resolution during such Resolution Period or a mutually agreeable written extension thereof 299 as evidenced in an Amendment to this Agreement signed by both parties within said period of 300 time, this Agreement is hereby terminated. If terminated, Buyer is entitled to a refund of the 301 Earnest Money/Trust Money. 302

□ E. Waiver of All Inspections. THIS BOX MUST BE CHECKED TO BE PART OF THIS AGREEMENT. 303 Buyer, having been advised of the benefits of inspections, waives any and all Inspection Rights under this 304 Section 7 (including but not limited to the Wood Destroying Insect Infestation Inspection Report). 305

8. Final Inspection. Buyer and/or his inspectors/representatives shall have the right to conduct a final inspection of 306 Property on the Closing Date or within ___ day(s) prior to the Closing Date only to confirm Property is in the same or 307 better condition as it was on the Binding Agreement Date, normal wear and tear excepted, and to determine that all 308 repairs/replacements agreed to during the Resolution Period, if any, have been completed. Property shall remain in such 309 condition until Closing at Seller’s expense. Closing of this sale constitutes acceptance of Property in its condition as of 310 the time of Closing, unless otherwise noted in writing. 311

9. Buyer’s Additional Due Diligence Options. If any of the matters below are of concern to Buyer, Buyer should address 312 the concern by specific contingency in the Special Stipulations Paragraph of this Agreement. 313 A. Survey and Flood Certification. Survey Work and Flood Certifications are the best means of identifying boundary 314

lines and/or encroachments and easements or flood zone classifications. Buyer may obtain a Mortgage Inspection or 315 Boundary Line Survey and Flood Zone Certifications. 316

B. Insurability. Many different issues can affect the insurability and the rates of insurance for property. These include 317 factors such as changes in the Flood Zone Certifications, changes to the earthquake zones maps, the insurability of 318 the buyer, and previous claims made on the Property. It is the right and responsibility of Buyer to determine the 319 insurability, coverage and the cost of insuring the Property. It is also the responsibility of Buyer to determine 320 whether any exclusions will apply to the insurability of said Property. 321




C. Water Supply. The system may or may not meet state and local requirements. It is the right and responsibility of 322 Buyer to determine the compliance of the system with state and local requirements. [For additional information on 323 this subject, request the “Water Supply and Waste Disposal Notification” form.] 324

D. Waste Disposal. The system may or may not meet state and local requirements. It is the right and responsibility of 325 Buyer to determine the compliance of the system with state and local requirements. In addition, Buyer may, for a 326 fee, obtain a septic system inspection letter from the Tennessee Department of Environment and Conservation, 327 Division of Ground Water Protection. [For additional information on this subject, request the “Water Supply and 328 Waste Disposal Notification” form.] 329

E. Title Exceptions. At Closing, the general warranty deed will be subject to subdivision and/or condominium 330 declarations, covenants, restrictions and easements of record, which may impose obligations and may limit the use 331 of the Property by Buyer. 332

10. Disclaimer. It is understood and agreed that the real estate firms and real estate licensee(s) representing or assisting 333 Seller and/or Buyer and their brokers (collectively referred to as “Brokers”) are not parties to this Agreement and do not 334 have or assume liability for the performance or nonperformance of Seller or Buyer. Buyer and Seller agree that Brokers 335 shall not be responsible for any of the following, including but not limited to, those matters which could have been 336 revealed through a survey, flood certification, title search or inspection of the Property; the insurability of the Property or 337 cost to insure the Property; for the condition of the Property, any portion thereof, or any item therein; for any geological 338 issues present on the Property; for any issues arising out of the failure to physically inspect Property prior to entering 339 into this Agreement and/or Closing; for the necessity or cost of any repairs to the Property; for hazardous or toxic 340 materials; for the tax or legal consequences of this transaction; for the availability, capability, and/or cost of utility, 341 sewer, septic, or community amenities; for any proposed or pending condemnation actions involving Property; for 342 applicable boundaries of school districts or other school information; for the appraised or future value of the Property; 343 for square footage or acreage of the Property; for any condition(s) existing off the Property which may affect the 344 Property; for the terms, conditions, and availability of financing; and/or for the uses and zoning of the Property whether 345 permitted or proposed. Buyer and Seller acknowledge that Brokers are not experts with respect to the above matters and 346 that they have not relied upon any advice, representations or statements of Brokers (including their firms and affiliated 347 licensees) and waive and shall not assert any claims against Brokers (including their firms and affiliated licensees) 348 involving same. Buyer and Seller understand that it has been strongly recommended that if any of these or any other 349 matters concerning the Property are of concern to them, that they secure the services of appropriately credentialed 350 experts and professionals of Buyer’s or Seller’s choice for the independent expert advice and counsel relative thereto. 351

11. Brokerage. As specified by separate agreement, Seller agrees to pay Listing Broker at Closing the agreed upon 352 compensation. The Listing Broker will direct the closing agency to pay the Selling Broker, from the compensation 353 received, an amount in accordance with the terms and provisions specified by separate agreement. The parties agree and 354 acknowledge that the Brokers involved in this transaction may receive compensation from more than one party. All 355 parties to this Agreement agree and acknowledge that any real estate firm involved in this transaction shall be deemed a 356 third party beneficiary only for the purposes of enforcing their commission rights, and as such, shall have the right to 357 maintain an action on this Agreement for any and all compensations due and any reasonable attorney’s fees and court 358 costs. 359

12. Default. Should Buyer default hereunder, the Earnest Money/Trust Money shall be forfeited as damages to Seller and 360 shall be applied as a credit against Seller’s damages. Seller may elect to sue, in contract or tort, for additional damages 361 or specific performance of the Agreement, or both. Should Seller default, Buyer’s Earnest Money/Trust Money shall be 362 refunded to Buyer. In addition, Buyer may elect to sue, in contract or tort, for damages or specific performance of this 363 Agreement, or both. In the event that any party hereto shall file suit for breach or enforcement of this Agreement 364 (including suits filed after Closing which are based on or related to the Agreement), the prevailing party shall be entitled 365 to recover all costs of such enforcement, including reasonable attorney’s fees. In the event that any party exercises its 366 right to terminate due to the default of the other pursuant to the terms of this Agreement, the terminating party retains the 367 right to pursue any and all legal rights and remedies against the defaulting party following termination. The parties 368 hereby agree that all remedies are fair and equitable and neither party will assert the lack of mutuality of remedies, rights 369 and/or obligations as a defense in the event of a dispute. 370

13. Home Protection Plan. This is not a substitution for Home Inspection. Exclusions to coverage may apply. (Select the 371 appropriate box below. Items not selected are not part of this Agreement). 372 □ Home Protection Plan. ______________________________ to pay $________ for the purchase of a limited home 373

protection plan to be funded at Closing. Plan Provider: ________________________________________________. 374 Ordered by: ________________________________________________________________ (Real Estate Company) 375




□ Home Protection Plan waived. 376

14. Other Provisions. 377 A. Binding Effect, Entire Agreement, Modification, Assignment, and Binding Agreement Date. This Agreement 378

shall be for the benefit of, and be binding upon, the parties hereto, their heirs, successors, legal representatives and 379 assigns. This Agreement constitutes the sole and entire agreement between the parties hereto and no modification of 380 this Agreement shall be binding unless signed by all parties or assigns to this Agreement. No representation, 381 promise, or inducement not included in this Agreement shall be binding upon any party hereto. It is hereby agreed 382 by both Buyer and Seller that any real estate agent working with or representing either party shall not have the 383 authority to bind the Buyer, Seller or any assignee to any contractual agreement unless specifically authorized in 384 writing within this Agreement. Any assignee shall fulfill all the terms and conditions of this Agreement. The 385 parties hereby authorize either licensee to insert the time and date of receipt of the notice of acceptance of the final 386 offer and further agree to be bound by such as the Binding Agreement Date following the signatory section of this 387 Agreement, or Counter Offer, if applicable. 388

B. Survival Clause. Any provision contained herein, which by its nature and effect is required to be performed after 389 Closing, shall survive the Closing and delivery of the deed and shall remain binding upon the parties to this 390 Agreement and shall be fully enforceable thereafter. 391

C. Governing Law and Venue. This Agreement is intended as a contract for the purchase and sale of real property 392 and shall be governed by and interpreted in accordance with the laws and in the courts of the State of Tennessee. 393

D. Time of Essence. Time is of the essence in this Agreement. 394

E. Terminology. As the context may require in this Agreement: (1) the singular shall mean the plural and vice versa; 395 (2) all pronouns shall mean and include the person, entity, firm or corporation to which they relate; (3) the masculine 396 shall mean the feminine and vice versa; and (4) the term day(s) used throughout this Agreement shall be deemed to 397 be calendar day(s) ending at 11:59 p.m. local time unless otherwise specified in this Agreement. Local time shall be 398 determined by the location of Property. In the event a performance deadline, other than the Closing Date (as 399 defined in paragraph 4 herein), Date of Possession (as defined in paragraph 4 herein), Completion of Repair 400 Deadline (as defined in the Repair/Replacement Amendment), and Offer Expiration Date (as defined in paragraph 401 20 herein), occurs on a Saturday, Sunday or legal holiday, the performance deadline shall extend to the next 402 following business day. Holidays as used herein are those days deemed federal holidays pursuant to 5 U.S.C. § 403 6103. In calculating any time period under this Agreement, the commencement shall be the day following the initial 404 date (e.g. Binding Agreement Date). 405

F. Responsibility to Cooperate. Buyer and Seller agree to timely take such actions and produce, execute, and/or 406 deliver such information and documentation as is reasonably necessary to carry out the responsibilities and 407 obligations of this Agreement. Except as to matters which are occasioned by clerical errors or omissions or 408 erroneous information, the approval of the closing documents by the parties shall constitute their approval of any 409 differences between this Agreement and the Closing. Buyer and Seller agree that if requested after Closing, they 410 will correct any documents and pay any amounts due where such corrections or payments are appropriate by reason 411 of mistake, clerical errors or omissions, or the result of erroneous information. 412

G. Notices. Except as otherwise provided herein, all notices and demands required or permitted hereunder shall be in 413 writing and delivered either (1) in person; (2) by a prepaid overnight delivery service; (3) by facsimile transmission 414 (FAX); (4) by the United States Postal Service, postage prepaid, registered or certified, return receipt requested; or 415 (5) Email. NOTICE shall be deemed to have been given as of the date and time it is actually received. Receipt of 416 notice by the real estate licensee or their Broker assisting a party as a client or customer shall be deemed to be notice 417 to that party for all purposes under this Agreement as may be amended, unless otherwise provided in writing. 418

H. Risk of Loss. The risk of hazard or casualty loss or damage to Property shall be borne by the Seller until transfer of 419 title. If casualty loss prior to Closing exceeds 10% of the Purchase Price, Seller or Buyer may elect to terminate this 420 Agreement with a refund of Earnest Money/Trust Money to Buyer. 421

I. Equal Housing. This Property is being sold without regard to race, color, sex, religion, handicap, familial status, or 422 national origin. 423

J. Severability. If any portion or provision of this Agreement is held or adjudicated to be invalid or unenforceable for 424 any reason, each such portion or provision shall be severed from the remaining portions or provisions of this 425 Agreement, and the remaining portions or provisions shall be unaffected and remain in full force and effect. In the 426




event that the contract fails due to the severed provisions, then the offending language shall be amended to be in 427 conformity with state and federal law. 428

K. Contract Construction. This Agreement or any uncertainty or ambiguity herein shall not be construed against any 429 party but shall be construed as if all parties to this Agreement jointly prepared this Agreement. 430

L. Section Headings. The Section Headings as used herein are for reference only and shall not be deemed to vary the 431 content of this Agreement or limit the scope of any Section. 432

15. Seller’s Additional Obligations. If Seller has any knowledge of an exterior injection well, a sinkhole as defined 433 pursuant to Tenn. Code Ann. § 66-5-212(c), and/or a percolation test or soil absorption rate on the Property, Seller shall 434 be obligated to counter this offer by disclosure of the existence of the above including any tests and reports unless 435 disclosure has already been received and acknowledged in writing by Buyer. Seller shall also disclose in the same 436 manner whether any single family residence located on the Property has been moved from an existing foundation to 437 another foundation where such information is known to the Seller. Seller shall also be obligated to counter this offer to 438 disclose if the Property is located in a Planned Unit Development (PUD) as defined pursuant to Tenn. Code Ann. § 66-5-439 213 unless said disclosure has already been received in writing and acknowledged by Buyer. If the Property is in a PUD, 440 Seller agrees to make available copies of the development’s restrictive covenants, homeowner bylaws, and master deed 441 to Buyer upon request. 442

16. Method of Execution. The parties agree that signatures and initials transmitted by facsimile, other photocopy 443 transmittal, or by transmittal of digital signature as defined by the applicable State or Federal law will be acceptable and 444 may be treated as originals and that the final Purchase and Sale Agreement containing all signatures and initials may be 445 executed partially by original signature and partially on facsimile, other photocopy documents, or by digital signature as 446 defined by the applicable State or Federal law. 447

17. Exhibits and Addenda. All exhibits and/or addenda attached hereto, listed below, or referenced herein are made a part 448 of this Agreement: 449 _________________________________________________________________________________________________ 450 _________________________________________________________________________________________________ 451 _________________________________________________________________________________________________452 _________________________________________________________________________________________________ 453

18. Special Stipulations. The following Special Stipulations, if conflicting with any preceding paragraph, shall control: 454 _________________________________________________________________________________________________ 455

_________________________________________________________________________________________________ 456 _________________________________________________________________________________________________ 457 _________________________________________________________________________________________________ 458 _________________________________________________________________________________________________ 459 _________________________________________________________________________________________________ 460 _________________________________________________________________________________________________ 461 _________________________________________________________________________________________________ 462 _________________________________________________________________________________________________ 463 _________________________________________________________________________________________________ 464 _________________________________________________________________________________________________ 465 _________________________________________________________________________________________________ 466 _________________________________________________________________________________________________ 467 _________________________________________________________________________________________________ 468 _________________________________________________________________________________________________ 469 _________________________________________________________________________________________________ 470 _________________________________________________________________________________________________ 471 _________________________________________________________________________________________________ 472

_________________________________________________________________________________________________ 473 _________________________________________________________________________________________________ 474 _________________________________________________________________________________________________ 475 _________________________________________________________________________________________________ 476

_________________________________________________________________________________________________ 477 _________________________________________________________________________________________________ 478




19. Time Limit of Offer. This Offer may be withdrawn at any time before acceptance with Notice. Offer terminates if not 479 countered or accepted by __________ o’clock □ a.m./ □ p.m.; on the ______ day of ____________________, ________. 480

LEGAL DOCUMENTS: This is an important legal document creating valuable rights and obligations. If you have 481 any questions about it, you should review it with your attorney. Neither the Broker nor any Agent or Facilitator is 482 authorized or qualified to give you any advice about the advisability or legal effect of its provisions. 483

NOTE: Any provisions of this Agreement which are preceded by a box “□” must be marked to be a part of this 484 Agreement. By affixing your signature below, you also acknowledge that you have reviewed each page and have 485 received a copy of this Agreement. 486

IMPORTANT NOTICE: Never trust wiring instructions sent via email. Cyber criminals are hacking email accounts 487 and sending emails with fake wiring instructions. These emails are convincing and sophisticated. 488 Always independently confirm wiring instructions in person or via a telephone call to a trusted and verified phone 489 number. Never wire money without double-checking that the wiring instructions are correct. 490

Buyer hereby makes this offer. 491

_____________________________________________ _____________________________________________ 492 BUYER BUYER 493

_______________ at __________ o’clock □ am/ □ pm _______________ at __________ o’clock □ am/ □ pm 494 Offer Date Offer Date 495

Seller hereby: 496

□ ACCEPTS – accepts this offer. 497

□ COUNTERS – accepts this offer subject to the attached Counter Offer(s). 498

□ REJECTS this offer and makes no counter offer. 499

_____________________________________________ _____________________________________________ 500 SELLER SELLER 501

_______________ at __________ o’clock □ am/ □ pm _______________ at __________ o’clock □ am/ □ pm 502 Date Date 503

Binding Agreement Date. This instrument shall become a “Binding Agreement” on the date (“Binding Agreement Date”) 504 the last offeror, or licensee of the offeror, receives notice of offeree’s acceptance. 505 Notice of acceptance of the final offer was received by ________________________________________ on 506 _______________ at __________ o’clock □ am/ □ pm 507 ____________________________________________________________________________________________________ 508

For Information Purposes Only: Listing Company: _______________________________ Selling Company: _________________________________ Listing Firm Address: ____________________________ Selling Firm Address: ______________________________ Firm License No.: _______________________________ Firm License No.: _________________________________ Firm Telephone No.: _____________________________ Firm Telephone No.: _______________________________ Listing Licensee: ________________________________ Selling Licensee: __________________________________ Licensee License Number: ________________________ Licensee License Number: ___________________________ Licensee Email: _________________________________ Licensee Email: ____________________________________ Home Owner’s / Condominium Association (“HOA/COA”): ____________________________________________________________________________________________________ HOA / COA Phone: ______________________________ HOA/COA Email: __________________________________ Property Management Company: ________________________________________________________________________ Phone: ________________________________________ Email: ___________________________________________ NOTE: This form is provided by TAR to its members for their use in real estate transactions and is to be used as is. By downloading and/or using this form, you agree and covenant not to alter, amend, or edit said form or its contents except as where provided in the blank fields, and agree and acknowledge that any such alteration, amendment or edit of said form is done at your own risk. Use of the TAR logo in conjunction with any form other than standardized forms created by TAR is strictly prohibited. This form is subject to periodic revision and it is the responsibility of the member to use the most recent available form.

} Copyright 2015 © Tennessee Realtors® Version 01/01/2018 RF708 – Purchase and Sale Agreement Timeline Checklist, Page 1 of 2


PURCHASE AND SALE AGREEMENT TIMELINE CHECKLIST Property Address: _____________________________________________________________________________________ 1

Buyer: ___________________________________________ Seller: ____________________________________________ 2

Address: ______________________________________ Address: _______________________________________ 3

Phone: ________________ Cell: _________________ Phone: ________________ Cell: _________________ 4

Fax: _________________ Email: _________________ Fax: _________________ Email: _________________ 5

Buyer’s Licensee: __________________________________ Seller’s Licensee: ___________________________________ 6

Binding Agreement Date: (BAD) ________________________________ Scheduled Closing Date: ___________________ 7

Enter Deadline Date for each item. Check each BOX when completed. 8 EARNEST MONEY/TRUST MONEY 9 __________ □ Deposited ______ days after BAD. 10

Holder of Earnest Money/Trust Money: 11 ______________________________________________________________________________________ 12

FINANCIAL OBLIGATION Lender: __________________________________________ Phone: ___________________ 13 Address: ___________________________________________ Email: _______________________________________ 14 Cell: _______________________ Fax: ______________________ 15 __________ □ Within 3 days of BAD, verify that Loan Application has been made and Lender has been instructed to order 16

credit report and Buyer has paid for credit report. 17 __________ □ Within 3 days of BAD, Notify Seller of Date of Application and Lender’s name, contact information and 18

that Lender has been instructed to order credit report and Buyer has paid for report. 19 __________ □ Within 14 days of BAD, Buyer has requested that the appraisal be ordered and the fee has been paid. 20 __________ □ Within 14 days of BAD, Provide Seller with representation and warranty of securing evidence of hazard 21

insurance and has notified Lender of an Intent to Proceed and has available funds to close per the Loan 22 Estimate. 23

__________ □ Seller’s Written Demand for Compliance if no Loan Application information is provided and that Buyer 24 has instructed Lender to order and has paid for credit report. 25

__________ □ Seller’s Written Demand for Compliance if Buyer has not provided representations and warranties of 26 securing evidence of hazard insurance and signing an Intent to Proceed with Lender and has available funds 27 to Close per the Loan Estimate. 28

__________ □ Within 5 days of BAD, Buyer to provide Proof of funds (For use when Financial Contingency Waived). 29 __________ □ Seller’s Written Demand for Compliance if Buyer has not provided proof of funds (For use when 30

Financial Contingency Waived). 31 APPRAISAL Purchase conditioned upon appraisal □ Yes □ No If Yes, 32 Appraiser Name: ______________________________________ Phone: __________________________ 33

Email: __________________________ Cell: _______________________ Fax: ______________________ 34 __________ □ Within 5 days of BAD, Buyer to provide Name and telephone number of appraiser and proof appraisal was 35

ordered. (For use when Financial Contingency Waived). 36 __________ □ Seller’s Written Demand for Compliance if Buyer has not provided name and address of appraiser and 37

proof appraisal was ordered. (For use when Financial Contingency Waived). 38 __________ □ Appraisal Complete 39 __________ □ Appraisal received by Buyer and/or Lender 40 __________ □ Within 3 days of Buyer receiving low appraisal price, Buyer to notify Seller of decision to terminate 41

agreement or waive appraisal contingency. 42

Copyright 2015 © Tennessee Realtors® Version 01/01/2018 RF708 – Purchase and Sale Agreement Timeline Checklist, Page 2 of 2


INSPECTION 43 __________ □ Buyer Inspection Period (within _____ days after BAD). 44

__________ □ Initial Home Inspection 45 Inspection Company: ______________________________________ Phone: ________________ 46 Inspector Name: ____________________________________ Phone: _________________________ 47 Email: ________________________ Cell: _____________________ Fax: ______________________ 48

__________ □ Wood Destroying Insect Infestation Inspection Report (WDI) made. 49 WDI Company: _____________________________________________ Phone: _________________ 50 Inspector Name: ____________________________________ Phone: _________________________ 51 Email: ________________________ Cell:______________________ Fax: ______________________ 52

__________ □ Other Inspections □ Well □ Septic □ Radon □ Lead Paint □ Survey 53 Company: _______________________________________________ Phone: ___________________ 54 Inspector Name: ____________________________________ Phone: _________________________ 55 Email: _________________________ Cell: ______________________ Fax: ____________________ 56

__________ □ Other Inspections □ Well □ Septic □ Radon □ Lead Paint □ Survey 57 Company: _______________________________________________ Phone: ___________________ 58 Inspector Name: ____________________________________ Phone: _________________________ 59 Email: ________________________ Cell: ______________________ Fax: _____________________ 60

__________ □ Buyer Notification to Seller to □ terminate □ accept □ request repairs. 61 __________ □ Resolution Period: __________ days following receipt of list of repairs and WDI (counters to each party) 62 __________ □ Completion of Repairs Deadline and Inspection 63 __________ □ Final inspection to be made (see Final Inspection section of Agreement for # of days). 64 HOMEOWNER ASSOCIATION 65 __________ □ Homeowner Association Bylaws, Covenants & Restrictions, etc. received 66 □ Monthly □ Quarterly □ Annual Dues $__________ 67

□ Monthly □ Quarterly □ Annual Assessments $__________ 68 □ Monthly □ Quarterly □ Annual Other $__________ 69 NOTES: _____________________________________________________________________________ 70

POSSESSION Other than at Closing 71 __________ □ Date of Possession if not at Closing 72

Temporary Occupancy Agreement □ Prior to Closing (RF 626) OR □ After Closing (RF 627) 73 MISCELLANEOUS 74 Home Protection Company: ________________________ Cost: _____________________ Confirmation No.:___________ 75

Phone: ___________________________ Email: _______________________ 76 Buyer Closing/Title Agency: _____________________________________________________________________________ 77

Contact: _________________________ Address: ______________________________________________ 78 Phone: __________________________ Email: _______________________________________ 79

Seller Closing/Title Agency: _____________________________________________________________________________ 80 Contact: _________________________ Address: ______________________________________________ 81 Phone: __________________________ Email: _______________________________________ 82

Title Policy □ Yes □ No □ Re-issue Credit Policy to Closing Attorney 83 Homeowner’s Insurance: _____________________________________________ Phone: __________________________ 84 Contact: _________________________________ Amount: __________________________ 85 Mortgage Information: _____________________________________________ Loan#: __________________________ 86 __________ □ Material Defect found in title examination, closing or loan survey, boundary line survey or other means 87

□ reported to Seller to cure prior to Closing Date 88 __________ □ Sellers Final Property Disclosure Completed (RF 202) 89 NOTE: This form is provided by TAR to its members for their use in real estate transactions and is to be used as is. By downloading and/or using this form, you agree and covenant not to alter, amend, or edit said form or its contents except as where provided in the blank fields, and agree and acknowledge that any such alteration, amendment or edit of said form is done at your own risk. Use of the TAR logo in conjunction with any form other than standardized forms created by TAR is strictly prohibited. This form is subject to periodic revision and it is the responsibility of the member to use the most recent available form.

Adaro Earnest Money Deposit 11/10

Office: ______________________

Personal check Cashier’s Check Money Order Other_________________________

Earnest Money Deposit Information NOTE: Please fill out completely. Attach copy of contract. Yes No Is this additional earnest money to be added to funds already on deposit?

(If yes, skip to Number 2; if no, please complete information in Number 1.)

1. Original Deposit Date__________________________ Amount $_________________ Adaro Listing # (Administrative use only)_____________________________________________ Contract Effective Date: _____________________________________________________ Estimated Closing Date: _____________________________________________________ Property Address: __________________________________________________________________________ City St Zip

Sales Price: _______________________________________________________ Commission Rate: _________% (to be disbursed as follows: Listing side______% Selling side _______% REQUIRED: WAS THIS A NEW HOME � OR RESALE � CLASS________ (Res-1, Condo-2, Land-3, Commercial-4, Duplex-5, Multi-res-6) Is there a referral fee? Yes No If so, to what company? ___________________________ Address: _________________________________________________________________________ How much? _______________________________________________________________________ From which side ? _____________listing _______________selling ______________both Buyers Name: __________________________________________________________________________ Buyer’s Address: ________________________________________________________ Street City State Zip Buyer’s Home Phone ___________________________Cell Phone_________________________________ Buyer’s email address_____________________________________________________________________ Seller’s Name: ______________________________________________________________________________ Listing Agent: _________________________________________Company Name_________________________ Selling Agent: _________________________________________Company Name_________________________ Pick one: should this be marked as:

1. Contract Pending ____________yes ________no 2. Contract Pending Contingent Contract __________yes _________no 3. Should all appointments be made with you ___________yes ________no

2. Additional Earnest Money Date____________________ Amount $_________________ Property Address: __________________________________________________________________________ City St Zip

PLEASE NOTE: If closing is to take place prior to the 14 day waiting period for Personal check deposits, a cashier’s check is required.

CONTRACT INPUT SHEET

To be used with NO earnest money attached.

Note: All items must be answered. Staple original to contract, keep copy in branch file.

Property Address _____________________________________________________________________Street City State Zipcode

Contract Effective Date __________________________________Closing Date____________________

Accounting #_______________________________

CLASS: ______________ (Res-1, Condo-2, Land-3, Commercial-4, Duplex-5, Multi-Res-6)

Sales Price $________________________Commission Rate_______Listing________% Selling_______

Is this a FSBO? Yes No

Is there a contingency (other than financing)? Yes No

Listing Agent _________________________________________Company________________________Agent ID Number

Selling Agent_________________________________________Company________________________Agent ID Number

Seller’s Name ________________________________________________________________________

Buyer’s Name_____________________________________________

Home Phone #____________________Cell phone #______________________________

Buyer’s email address________________________________________________________

Buyer’s Address_______________________________________________________________________Street City State Zipcode

Contract Input Form 09/10

Affiliated Business Disclosure 1/2018 Page 1 of 2

Affiliated Business Arrangement Disclosure To:_____________________________________________________(Print Customer’s (s’) names This disclosure is to give you notice that Adaro has business relationships with other businesses whom you may decide to use in a real estate transaction.

Property Address_________________________________________________________ Date_________________________________ Adaro Realty is in the business of assisting owners, buyers and tenants with real estate transactions and other real estate related business. Adaro Realty, Inc., Crye-Leike, Inc., Crye-Leike of Nashville, Inc., Crye-Leike of Mississippi, Inc., Crye-Leike Property Management, Inc., Crye-Leike South Inc., Crye-Leike Realty, Inc., Crye-Leike of Arkansas, Inc., Crye-Leike Commercial, Inc., Focus Relocation, Inc. and Crye-Leike Franchises, Inc. have common ownership. One or both of the owners

1 of Adaro Realty has ownership in the following providers of real estate related businesses. Because of these

relationships, your choice to use any of these services may provide a financial or other benefit to the owners. The owners of Adaro Realty own 100% of Realty Title and Escrow Company, Inc. Crye-Leike Insurance Agency, Inc. and Crye-Leike Home Services, Inc. The owners of Crye-Leike own 51% interest in Community Holding Corp. which owns Community Mortgage Corp. Community Mortgage Corp. also does business as Crump Mortgage. One of the owners of Crye-Leike has 100% ownership of the following businesses: Realty Title and Escrow Services, Inc., (also dba Prime Title), Realty Title and Escrow Services of Alabama, Inc. and Warranty Home USA, LLC. Crye-Leike Inc. has an ownership interest (8.21%) in Reliance Relocation Services, Inc., d/b/a Leading Real Estate Companies of the World

TM.

Crye-Leike sells advertising to home warranty companies and mortgage lending companies and may be compensated for advertising expenses and services performed for the following providers: Community Mortgage, Crump Mortgage, First Bank Mortgage, Mortgage Investor’s Group, NOLA Mortgage, Seagrave Mortgage, American Home Shield and Global Home Warranty, Inc.

Each of these providers shall be called “Affiliates”* Set forth below is the estimated charge or range of charges for the settlement services listing. You are NOT required to use the listed provider(s) as a condition for purchase, sale or leasing of your property. THERE ARE FREQUENTLY OTHER SETTLEMENT SERVICE PROVIDERS AVAILABLE WITH SIMILAR SERVICES. YOU ARE FREE TO SHOP AROUND TO DETERMINE THAT YOU ARE RECEIVING THE BEST SERVICES AND THE BEST RATE FOR THESE SERVICES.

Customers should always verify current charges with the applicable company.

Estimated charge or range of charges for mortgage loans Community Mortgage, Crump Mortgage, First Bank Mortgage, NOLA Mortgage, Mortgage Investor’s Group, and Seagrave Mortgage. Loan Origination 0-3% of loan amount Other charges that are not attributable to the lender will appear on your settlement statement. A lender is allowed to require the use of an attorney, credit reporting agency, or real estate appraiser chosen to represent the lender’s interest.

Continue to Page 2 Customer’s Initials _____________________________

1 Harold C Crye and Richard H. Leike

Affiliated Business Disclosure 1/2018 Page 2 of 2

Estimated charge or range of charges made by Crye-Leike Insurance Agency Homeowners/Hazard Insurance Rates from $100.00 to $1,600.00 per year. The rate will be determined by the coverage chosen by you. Crye-Leike represents many different insurers. Discounts are available for combined auto/home and home security systems depending on coverage chosen. Coverage can include replacement cost on home and replacement cost on contents. Estimated charge or range of charges made by Realty Title & Escrow Company, Inc. , Realty Title and Escrow Services, Inc., and DBA Prime Title: Which party pays for which services is most often a matter of agreement between the parties (buyer and seller, borrower and lender) and can vary by location of property. You should check with your real estate professional to ascertain which of the charges below, if any, you may be responsible for paying.

Title Insurance, Search and Opinion Fees – sometimes combined together as a single (all-inclusive) charge but can be charged separately. Rates vary with insurance company, type of coverage, endorsements and location of property to be insured. Discounts are usually available for prior title policies issued within a certain time period.

Sample charges for a property with a purchase price or loan amount of $200,000.00: Knox, Hamilton County, TN $ 1094 (Title Search- All inclusive) Title Services $355 Shelby County, TN $650 Title Services; Search $200 Davidson, Williamson, and Rutherford County TN $1244 (Title Insurance-Title Search All Inclusive) Title Services $515 All other TN counties $637.50 (Risk Rate-Title Search not included) Search Fee $300; Title Services $670 North Mississippi Counties $800.00 Arkansas Range of $350-$870 (All inclusive title services fee) Range of $150-$475 mortgagee title policy State of Georgia $850 (Risk Rate-Title Search no included) Search fee $300; Title Services$670 Hinds, Rankin, Madison, MS $1000 Alabama $905 (Risk Rate-Title Search not includes) Search fee $125; Title Services $950 There may be an additional Simultaneous issue charge for additional mortgagee or owners’ policy - $35.00 to $75.00 The title insurance premium paid will be shared between the owners of Realty Title and Escrow Co., Realty Title Escrow Services, Inc., also dba Prime Title and the title insurance underwriter.

Title Services – vary depending on type of loan, type of property, price of property and can range from $150 - $750 for all parties. Estimated Cost of Home Protection Plan on Resale Homes Basic/Core Coverage for a single family home varies from $465 to $695 and may depend on the state in which the property is located and the amount of deductible or Trade fee. Additional charges for large homes and optional coverage such as for pool, spas, etc. are available for quote. A deductible (trade fee) applies.

Acknowledgement I/We acknowledge that we have read this disclosure form and understand that Crye-Leike may refer me/us to purchase the above described settlement services and may receive financial or other benefit as a result of this referral. Buyer(s)/Seller(s) also acknowledges that an affiliate may contact him/her by phone, mail, fax, or email regarding additional products and services and that he or she is not required to use any of the provider(s) or any other service provider referred by Crye-Leike, its brokers, sales associates, employees, or any representative as a condition for settlement of a loan on the subject property or for the purchase, sale, lease, or refinance of the subject property. Buyer(s)/Seller(s) further acknowledge that any information or written material provided by Crye-Leike, its brokers, sales associate, employees, or any representative regarding a service provider, or the referral of a specific service provider by Crye-Leike, its brokers, sales associates, employees, or any representative is for informational purposes and provided only as a convenience *Adaro Realty and some of the affiliated businesses are real estate brokerage companies. Although there is common ownership, the services offered and charges at Adaro Realty and the other real estate brokerage companies are different. No one should consider themselves as doing business with an affiliated company simply because the companies have shared ownership.

_______________________________________________ __________________________________________ Buyer/Seller Date Buyer/Seller Date _______________________________________________ __________________________________________ Email Address Email Address _______________________________________________ ___________________________________________ Phone Phone

___________________________________________ Sales Associate Date

*Cyber Security – Wire Fraud Warning*

Criminals use many methods to steal our money, even when we are buying or selling a home: phony

email address, authentic-looking fake website, phony fax number, texts, calls, and social media messenger

from scammers – particularly involving wire fund transfers. Scammers typically will send an email that APPEARS to

be from your agent, broker, lender, or the title company. These scams request information or may direct you to a

fake website, to a criminal’s email address, or to a criminal’s bank account. Adaro does not send wiring

instructions by email, fax, text, or social media messages. And, changes, if any, to a transaction’s closing

details are provided by a phone call from your agent and by a known representative at your bank, at your

lender/mortgage company, or by your closing attorney before anything is sent to you by email.

BUYERS AND SELLERS, if you receive wiring instructions from a settlement/title company, a lender, a

bank, a closing attorney, or other entity or person, DO NOT TRANSFER ANY FUNDS until after you have

verified the authenticity of the wiring instructions by at least one other independent means:

• Call the phone number you used on all your prior calls, or

• Make a personal visit to their office at the address you previously met with them.

BUYERS AND SELLERS, if you send wiring instructions by email or any electronic means to anyone at

your bank or other financial institution, DO NOT TRANSFER ANY FUNDS until after you verify that the correct

instructions were received by a known representative at the intended receiver of those funds. Also, it is

important to confirm with the intended receiver that the wire instructions ARE NOT TO BE SUBSTITUTED

WITHOUT YOUR PRIOR VERBAL CONSENT.

Be especially aware of any request to change any of the original wiring/money transfer information,

change in the person you have been working with on the transaction, or a subtle difference in their

behavior, speech, or grammar. These are some signs of a potential scam.

If you suspect you may be a victim of wire fraud or that you may have received suspicious phone calls,

emails, text messages, faxes, social media messages, emails from a fake address, a change in contact person at

your bank or mortgage company, or changes to wire transfer or financing instructions:

� IMMEDIATELY call your bank and/or mortgage company at the phone number you

used in all prior calls.

� Then, call your agent at the phone number you used in all prior calls.

__________________________ __________ ___________________________________ _

Buyer or Seller Date Buyer or Seller Date

Copyright 2003 © Tennessee Realtors® Version 01/01/2018 RF304 – Disclaimer Notice, Page 1 of 3


DISCLAIMER NOTICE

The Brokers and their affiliated licensees (hereinafter collectively “Licensees”) involved in the Purchase and Sale 1 Agreement (hereinafter “Agreement”) regarding real estate located at 2 _______________________________________________________________________ (hereinafter “Property”) 3 are not attorneys and are not structural or environmental engineers. They are engaged in bringing together buyers 4 and sellers in real estate transactions. Licensees expressly deny any expertise with respect to advice or informed 5 opinions regarding any of the following matters. This Disclaimer Notice is an express warning to all sellers and 6 buyers that they should not rely on any statement, comment or opinion expressed by any Licensee when making 7 decisions about any of the following matters, including the selection of any professional to provide services on 8 behalf of buyers or sellers. Any professional selected by buyers or sellers should be an “independent, qualified 9 professional”, who complies with all applicable state/local requirements, which may include licensing, insurance, 10 and bonding requirements. It is strongly recommended that buyers include contingency clauses in their offers to 11 purchase with respect to these or any other matters of concern and that buyers, in writing the offer, allow enough 12 time to get an evaluation of the following matters from an independent, qualified professional. The matters listed 13 below are not an exclusive list of actions or circumstances which are not the responsibility of the Licensees with 14 whom you work. These items are examples and are provided only for your guidance and information. 15

1. THE STRUCTURAL OR OTHER CONDITIONS OF THE PROPERTY. Consult with professional 16 engineers or other independent, qualified professionals to ascertain the existence of structural issues, the 17 condition of synthetic stucco (E.I.F.S.) and/or the overall condition of the Property. 18

2. THE CONDITION OF ROOFING. Consult with a bonded roofing company for any concerns about the 19 condition of the roof. 20

3. HOME INSPECTION. We strongly recommend that you have a home inspection, which is a useful tool for 21 determining the overall condition of a home including, but not limited to, electrical, heating, air conditioning, 22 plumbing, water-heating systems, fireplaces, windows, doors and appliances. Contact several sources (like 23 the Tennessee Department of Commerce & Insurance (http://tn.gov/commerce/), the American Society of 24 Home Inspectors (www.ashi.com), the National Association of Certified Home Inspectors (www.nahi.org), 25 and Home Inspectors of Tennessee Association (www.hita.us) and independently investigate the competency 26 of an inspector, including whether he has complied with State and/or local licensing and registration 27 requirements in your area. The home inspector may, in turn, recommend further examination by a specialist 28 (heating-air-plumbing, etc.). Failure to inspect typically means that you are accepting the Property “as 29 is”. 30

4. WOOD DESTROYING ORGANISMS, PESTS AND INFESTATIONS. It is strongly recommended that 31 you use the services of a licensed, professional pest control company to determine the presence of wood 32 destroying organisms (termites, fungus, etc.) or other pests or infestations and to examine the Property for any 33 potential damage from such. 34

5. ENVIROMENTAL HAZARDS. Environmental hazards, such as, but not limited to: radon gas, mold, 35 asbestos, lead-based paint, hazardous wastes, landfills, byproducts of methamphetamine production, high-36 voltage electricity, noise levels, etc., require advanced techniques by environmental specialists to evaluate, 37 remediate and/or repair. It is strongly recommended that you secure the services of knowledgeable 38 professionals and inspectors in all areas of environmental concern. 39



6. SQUARE FOOTAGE. There are many ways of measuring square footage. Information is sometimes 40 gathered from tax or real estate records on the Property. Square footage provided by builders, real estate 41 licensees, or tax records is only an estimate with which to make comparisons, but it is not guaranteed. It is 42 advised that you have a licensed appraiser determine actual square footage. 43

7. CURRENT VALUE, INVESTMENT POTENTIAL, OR RESALE VALUE OF THE PROPERTY. A 44 true estimate of the value can only be obtained through the services of a licensed appraiser. No one, not even 45 a professional appraiser, can know the future value of a property. Unexpected and unforeseeable things 46 happen. NOTE: A real estate licensee’s Comparative Market Analysis (CMA) or Broker’s Price Opinion 47 (BPO), etc., while sometimes used to set an asking price or an offer price, is not an appraisal. 48

8. BOUNDARY LINES, EASEMENTS, ENCROACHMENTS, AND ACREAGE. It is strongly advised 49 that you secure the services of a licensed surveyor for a full-stake boundary survey with all boundary lines, 50 easements, encroachments, flood zones, total acreage, etc., clearly identified. It is also advised that you not 51 rely on mortgage loan inspection surveys, previous surveys, plat data, or Multiple Listing Service (MLS) data 52 for this information, even if acceptable to your lender. 53

9. ZONING, CODES, COVENANTS, RESTRICTIONS, AND RELATED ISSUES. Zoning, codes, 54 covenants, restrictions, home owner association by-laws, special assessments, city ordinances, governmental 55 repair requirements and related issues need to be verified by the appropriate sources in writing. If your 56 projected use requires a zoning or other change, it is recommended that you either wait until the change is in 57 effect before committing to a property or provide for this contingency in your Purchase and Sale Agreement. 58

10. UTILITY CONNECTIONS, SEPTIC SYSTEM CAPABILITY, AND RELATED SERVICES. The 59 availability, adequacy, connection and/or condition of waste disposal (sewer, septic system, etc.), water 60 supply, electric, gas, cable, internet, telephone, or other utilities and related services to the Property need to be 61 verified by the appropriate sources in writing. You should have a professional check access and/or 62 connection to public sewer and/or public water source and/or the condition of any septic system(s) and/or 63 wells. To confirm that any septic systems are properly permitted for the actual number of bedrooms, it is 64 recommended that sellers and/or buyers request a copy of the information contained in the file for the 65 Property maintained by the appropriate governmental permitting authority. If the file for this Property cannot 66 be located or you do not understand the information contained in the file, you should seek professional advice 67 regarding this matter. For unimproved land, septic system capability can only be determined by using the 68 services of a professional soil scientist and verifying with the appropriate governmental authorities that a 69 septic system of the desired type, size, location, and cost can be permitted and installed to accommodate the 70 size home that you wish to build. 71

11. FLOODING, DRAINAGE, FLOOD INSURANCE, AND RELATED ITEMS. It is recommended that 72 you have a civil or geotechnical engineer or other independent expert determine the risks of flooding, 73 drainage or run-off problems, erosion, land shifting, unstable colluvial soil, sinkholes and landfills. The risk 74 of flooding may increase and drainage or storm run-off pathways may change. Be sure to consult with the 75 proper governmental authorities, elevation surveyors, and flood insurance professionals regarding flood and 76 elevation certificates, flood zones, and flood insurance requirements, recommendations and costs. 77

12. CONDEMNATION. It is recommended that you investigate whether there are any pending or proposed 78 condemnation proceedings or similar matters concerning any portion of the Property with the State, County 79 and city/town governments in which the Property is located. Condemnation proceedings could result in all or 80 a portion of the Property being taken by the government with compensation being paid to the landowner. 81

13. SCHOOL DISTRICTS AND OTHER SCHOOL INFORMATION. It is advised that you independently 82 confirm school zoning with the appropriate school authorities, as school districts are subject to change. Other 83 school information (rankings, curriculums, student-teacher ratios, etc.) should be confirmed by appropriate 84 sources in writing. 85



14. INFORMATION ABOUT CRIMES, METHAMPHETAMINE PROPERTIES, OR SEX 86 OFFENDERS. You should consult with local, state and federal law enforcement agencies for information or 87 statistics regarding criminal activity at or near the Property, the presence of methamphetamine manufacturing, 88 or for the location of sex offenders in a given area. 89

15. LEGAL AND TAX ADVICE. You should seek the advice of an attorney and/or certified tax specialist on 90 any legal or tax questions concerning any offers, contracts, issues relating to title or ownership of the 91 Property, or any other matters of concern, including those itemized in this Disclaimer Notice. Real estate 92 licensees are not legal or tax experts, and therefore cannot advise you in these areas. 93

16. RECOMMENDED INSPECTORS, SERVICE PROVIDERS, OR VENDORS. The furnishing of any 94 inspector, service provider or vendor named by the real estate licensee is done only as a convenience and a 95 courtesy, and does not in any way constitute any warranty, representation, or endorsement. Buyers and sellers 96 have the option to select any inspectors, service providers or vendors of the buyer’s or seller’s choice. You 97 are advised to contact several sources and independently investigate the competency of any inspector, 98 contractor, or other professional expert, service provider or vendor and to determine compliance with any 99 licensing, registration, insurance and bonding requirements in your area. 100

The Buyer/Seller acknowledges that they have not relied upon the advice, casual comments, or verbal 101 representations of any real estate licensee relative to any of the matters itemized above or similar matters. 102 The Buyer/Seller understands that it has been strongly recommended that they secure the services of 103 appropriately credentialed experts and professionals of the buyer’s or seller’s choice for the advice and 104 counsel about these and similar concerns. 105

The party(ies) below have signed and acknowledge receipt of a copy. 106

_____________________________________________ _____________________________________________ 107 CLIENT/CUSTOMER (□ BUYER / □ SELLER) CLIENT/CUSTOMER (□ BUYER / □ SELLER) 108

_______________ at __________ o’clock □ am/ □ pm _______________ at __________ o’clock □ am/ □ pm 109 Date Date110

NOTE: This form is provided by TAR to its members for their use in real estate transactions and is to be used as is. By downloading and/or using this form, you agree and covenant not to alter, amend, or edit said form or its contents except as where provided in the blank fields, and agree and acknowledge that any such alteration, amendment or edit of said form is done at your own risk. Use of the TAR logo in conjunction with any form other than standardized forms created by TAR is strictly prohibited. This form is subject to periodic revision and it is the responsibility of the member to use the most recent available form.

Copyright 2012 © Tennessee Realtors® Version 01/01/2017 RF702 – Compensation Agreement between Listing and Selling Broker, Page 1 of 1


COMPENSATION AGREEMENT BETWEEN LISTING & SELLING BROKER This compensation agreement (“Agreement”) is entered into this _____ day of __________________, ______ and relates to: 1 __________________________________________________________________________________________ (“Property”) 2 and _______________________________________________________________________________________ (“Buyer”). 3

The undersigned Listing Broker is to be paid real estate compensation by the seller upon the closing of the above stated 4 Property. Listing Broker agrees to share its compensation with the undersigned Selling Broker as set forth below: 5 Listing Broker (Firm Name) _____________________________________________________________________________ 6 Listing Firm Address: __________________________________________________________________________________ 7 Selling Broker (Firm Name) _____________________________________________________________________________ 8 Selling Firm Address: __________________________________________________________________________________ 9 Selling Broker shall receive the following compensation: $______________ or _____% of the purchase price of the Property. 10 In addition, this Agreement is subject to the following terms and conditions: 11 1. This Agreement shall supersede any previous agreements entered into by the parties. 12 2. Listing Broker shall have no obligation to the Selling Broker for compensation relating to the above referenced Property, 13

Buyer, and Selling Broker if the Purchase and Sale Agreement that Selling Broker is involved in does not close. 14 3. There shall be no reduction, change or modification to compensation without prior consent of all Brokers involved. 15 4. If either licensee, subsequent to entering into this Agreement, unilaterally agrees to a reduction in compensation to be 16

received by the licensee’s broker without the consent of the other licensee, the amount of reduction shall be deducted 17 solely from the licensee’s broker that reduced the compensation. 18

5. Listing Broker shall have no obligation to pay above compensation to Selling Broker in the event that such is prohibited 19 by a court order and/or instruction from a lender as could occur in situations including but not limited to, short sales, 20 foreclosures, and bankruptcy proceedings. In the event that such compensation is limited and/or prohibited by such 21 order or instruction, Listing Broker shall only be obligated to pay Selling Broker the compensation which is permitted by 22 such order or instruction. Listing Broker shall advise Selling Broker of any such order or instruction and with 23 permission of both parties provide evidence of such as soon as possible. 24

SPECIAL STIPULATIONS: The following Special Stipulations, if conflicting with any exhibit, addendum, or preceeding 25 paragraph, shall control: 26 ____________________________________________________________________________________________________27 ____________________________________________________________________________________________________ 28


_________________________________________________ _________________________________________________ 30 By: Broker or Licensee Authorized by Broker LISTING BROKER/FIRM 31 _______________ at __________ o’clock □ am/ □ pm _________________________________________________ 32 Date ADDRESS: 33 _________________________________________________ PHONE:__________________ FAX: __________________ 34 PRINT/TYPE NAME Email: ___________________________________________ 35


_________________________________________________ _________________________________________________ 37 By: Broker or Licensee Authorized by Broker SELLING BROKER/FIRM 38 _______________ at __________ o’clock □ am/ □ pm _________________________________________________ 39 Date ADDRESS: 40 _________________________________________________ PHONE:__________________ FAX: __________________ 41 PRINT/TYPE NAME Email: ___________________________________________42 NOTE: This form is provided by TAR to its members for their use in real estate transactions and is to be used as is. By downloading and/or using this form, you agree and covenant not to alter, amend, or edit said form or its contents except as where provided in the blank fields, and agree and acknowledge that any such alteration, amendment or edit of said form is done at your own risk. Use of the TAR logo in conjunction with any form other than standardized forms created by TAR is strictly prohibited. This form is subject to periodic revision and it is the responsibility of the member to use the most recent available form.

Copyright 2006 © Tennessee Realtors® Version 01/01/2018 RF660 – Buyer's Final Inspection, Page 1 of 1


BUYER’S FINAL INSPECTION

Property Address: _____________________________________________________________________________________ 1 Buyer: ______________________________________________________________________________________________ 2 Seller: _______________________________________________________________________________________________ 3

We, the Buyers, and/or our inspectors and/or our representatives, (the sections not marked are not part of this Agreement): 4 □ waive such final inspection and agree to accept the Property in its present condition, “AS IS.” 5 OR 6

□ have made the final inspection of the Property and confirm it to be in the same or better condition as it was on the 7 Binding Agreement Date, normal wear and tear excepted, and all repairs and replacements, if any, have been made 8 to our satisfaction, and we agree to accept the Property in its present condition. 9

OR 10 □ have made the final inspection of the Property and confirm it to be in the same or better condition as it was on the 11

Binding Agreement Date, normal wear and tear excepted, and all repairs and replacements, if any, have been made 12 to our satisfaction, with the following exceptions. The Buyer requires the following to be completed prior to 13 closing: 14 _____________________________________________________________________________________________15 _____________________________________________________________________________________________16 _____________________________________________________________________________________________17 _____________________________________________________________________________________________18 _____________________________________________________________________________________________19 _____________________________________________________________________________________________20 _____________________________________________________________________________________________21 _____________________________________________________________________________________________22 _____________________________________________________________________________________________ 23

This Buyer’s Final Inspection is made a part of the Purchase and Sale Agreement as if quoted therein verbatim. Should the 24 terms of this Buyer’s Final Inspection conflict with the terms of the Purchase and Sale Agreement or other documents 25 executed prior to or simultaneous to the execution of this Buyer’s Final Inspection, the terms of this Buyer’s Final Inspection 26 shall control, and the conflicting terms are hereby considered deleted and expressly waived by both Seller and Buyer. In all 27 other respects, the Purchase and Sale Agreement shall remain in full force and effect. 28


_____________________________________________ _____________________________________________ 30 BUYER BUYER 31

_______________ at __________ o’clock □ am/ □ pm _______________ at __________ o’clock □ am/ □ pm 32 Date Date 33


_____________________________________________ _____________________________________________ 35 SELLER SELLER 36

_______________ at __________ o’clock □ am/ □ pm _______________ at __________ o’clock □ am/ □ pm 37 Date Date38 NOTE: This form is provided by TAR to its members for their use in real estate transactions and is to be used as is. By downloading and/or using this form, you agree and covenant not to alter, amend, or edit said form or its contents except as where provided in the blank fields, and agree and acknowledge that any such alteration, amendment or edit of said form is done at your own risk. Use of the TAR logo in conjunction with any form other than standardized forms created by TAR is strictly prohibited. This form is subject to periodic revision and it is the responsibility of the member to use the most recent available form.

Copyright 2014 © Tennessee Realtors® Version 01/01/2018 RF712 – Get a Home Inspection and Property Survey, Page 1 of 2


GET A HOME INSPECTION AND PROPERTY SURVEY

Name of Buyer(s) _____________________________________________________________________________________ 1

Property Address ______________________________________________________________________________________ 2

I. HOME INSPECTION 3

1. WHY A BUYER NEEDS A HOME INSPECTION. A home inspection gives the Buyer more detailed 4 information about the overall condition of the home prior to purchase. In a home inspection, a licensed inspector 5 takes an in-depth, unbiased look at your potential new home to: 6

a. Evaluate the physical condition: structure, construction, and mechanical systems. 7

b. Identify items that need to be repaired or replaced. 8

c. Estimate the remaining useful life of the major systems, equipment, structure, and finishes. 9

2. APPRAISALS ARE DIFFERENT FROM HOME INSPECTIONS. An appraisal is different from a home 10 inspection. Appraisals are for lenders; home inspections are for buyers. An appraisal is required for three reasons: 11

a. To estimate the market value of a house. 12

b. To make sure that the house meets Lender minimum property standards/requirements. 13

c. To make sure that the house is marketable. 14

3. LENDER DOES NOT GUARANTEE THE CONDITION OF YOUR POTENTIAL NEW HOME. If you find 15 problems with your new home after closing, the Lender cannot give or lend you money for repairs, and the Lender 16 cannot buy the home back from you. 17

4. RADON GAS TESTING. The United States Environmental Protection Agency and the Surgeon General of the 18 United States have recommended that all houses should be tested for radon. For more information on radon testing, 19 call the National Radon Information Line at 1-800-SOS-Radon or 1-800-767-7236 or the Tennessee Department of 20 Environment and Conservation at 1-800-232-1139. As with a home inspection, if you decide to test for radon, you 21 may do so before signing your contract, or you may do so after signing the contract as long as your contract states 22 the sale of the home depends on your satisfaction with the results of the radon test. 23

5. BE AN INFORMED BUYER. It is your responsibility to be an informed buyer. Be sure that what you buy is 24 satisfactory in every respect. You have the right to carefully examine your potential new home with a licensed 25 home inspector. You may arrange to do so before signing your contract, or you may do so after signing the contract 26 as long as the contract states that the sale of the home depends on the inspection. 27

II. PROPERTY SURVEY 28

1. WHY A BUYER NEEDS A SURVEY. A survey gives the Buyer specific information concerning the boundary 29 lines of the property prior to purchase. A licensed surveyor can provide the following services which may be 30 beneficial to you as a buyer in this transaction: 31

a. To establish boundary lines on a parcel of land at the time of subdividing the property; 32

b. Properly representing boundary lines as part of a General Property Survey; 33

c. Identify potential issues associated with a piece of property in the form of encroachments, setback 34 violations, easements, etc.; and 35

d. Prepare an accurate property description which will become part of the deed of transfer. 36

2. SURVEYS ARE DIFFERENT FROM OTHER INSPECTIONS. A survey is different from a home inspection 37 and an appraisal. A survey represents the boundary lines for the property and potential issues associated with the 38 property. Neither a home inspection nor an appraisal can do this. A home inspection provides a report on the 39

Copyright 2014 © Tennessee Realtors® Version 01/01/2018 RF712 – Get a Home Inspection and Property Survey, Page 2 of 2


condition of the improvements on the property. An appraisal determines the value of the property. In order to 40 ensure that you know exactly how much land you are purchasing and conditions associated with the property 41 boundaries, you should have a survey done. 42

3. BE AN INFORMED BUYER. It is your responsibility to be an informed buyer. Be sure that what you buy is 43 satisfactory in every respect. You have the right to carefully examine your potential new property with a licensed 44 surveyor. You may arrange to do so before signing your contract, or you may do so after signing the contract as 45 long as the contract states that the sale of the home depends on the survey. 46

III. BUYER ACKNOWLEDGMENT 47

1. HOME INSPECTION. 48

I/we understand the importance of getting an independent home inspection. I/we have considered this before 49 signing a contract with the seller for a home. Furthermore, I/we have carefully read this notice and fully 50 understand that the Lender will not perform a home inspection nor guarantee the price or condition of the 51 property. 52

□ I/we choose to have a home inspection performed. 53

□ I/we choose NOT to have a home inspection performed. 54

2. SURVEY 55

I/we understand the importance of getting an independent survey and that this can be done through a 56 licensed surveyor. I/we have been advised that a survey is recommended prior to purchasing real property. 57 I/we have considered this before signing a contract with the seller for a home. Furthermore, I/we have 58 carefully read this notice and fully understand that obtaining an independent survey is the best means of 59 determining the boundary lines for the property. 60

□ I/we choose to have a survey performed. 61

□ I/we choose NOT to have a survey performed. 62


_____________________________________________ _____________________________________________ 64 BUYER BUYER 65

_______________ at __________ o’clock □ am/ □ pm _______________ at __________ o’clock □ am/ □ pm 66 Date Date67

NOTE: This form is provided by TAR to its members for their use in real estate transactions and is to be used as is. By downloading and/or using this form, you agree and covenant not to alter, amend, or edit said form or its contents except as where provided in the blank fields, and agree and acknowledge that any such alteration, amendment or edit of said form is done at your own risk. Use of the TAR logo in conjunction with any form other than standardized forms created by TAR is strictly prohibited. This form is subject to periodic revision and it is the responsibility of the member to use the most recent available form.

CONTRACT CHECKLISTCONTRACT CHECKLISTCONTRACT CHECKLISTCONTRACT CHECKLIST

AGENT _______________________________ ADDRESS____________________________STATE ______ DATE ________

Copy of MLS Printout Sales Checklist

Contract Input Sheet Earnest Money Deposit Information

Compensation Agreement (RF702)

Purchase and Sale Agreement (RF401)

Affiliated Business Arrangement

Additional Required Property Disclosures (RF205)

Disclaimer Notice (RF304)

TN Property Disclosure (RF201)

Get a Home Inspection (RF712)

MS Property Issues Addendum (F27)

Buyer Inspection Contingency Removal

Confirmation of Agency Status (RF302)

Working with a Real Estate Professional (RF301)

Buyer Representation Agreement Exclusive (RF141)

Buyer Representation Agreement Non-Exclusive (RF143)

Agency Status Change (RF303)

Acknowledgement of Mortgage Timelines

MS-Dual Agency Confirmation

REQUIRED WHEN APPLICABLE

CONTRACTS-NEW CONSTRUCTION

Addendum-As Is Condition New Construction Allowance Addendum (RF630)

Addendum-Back Up, Contingency (RF622) New Construction Change Order Amendment (RF661)

Addendum-FHA/VA (RF625) New Construction Walk Through/Punch List (RF662)

Addendum-Purchase and Sale Short Sale (RF659) Notice to Home Buyer of the New Home Warranty Act

Amendment-Blank (RF621) Pre-Construction Specifications

Amendment-Closing/Possession Date (RF657)

Amendment-Repair Counter Proposal

Condo Assoc. Info Request (RF709)

Counter Offer (RF651)

Disclosure-Impact Fees or Adequate Facilities Taxes (RF207)

Disclosure-Multiple Offers (RF663)

Disclosure-Personal Interest (RF305)

Disclosure-Short Sale for Buyers and Sellers (RF713)

Disclosure-Unimproved Property

Limited Occupancy Agreement After Closing

Limited Occupancy Agreement Prior to Closing

Notice Water/Waste (RF714)

Notification (RF656)

Option Agreement (RF483)

Personal Property Agreement (RF25)

Repair Counter Proposal

Sellers Impact Fees or Adequate Facilities Taxes Disclosure

Sellers Property Condition Disclosure Update (RF202)

Sellers Right to Continue to Market Property and Notice Form

(RF623)

TN Dept of Environment & Conversion (TDEC) (RF710)

Tennessee

AMERICAN HOME SHIELD®

HOME WARRANTY

SINGLE FAMILY HOMES

CONDOS AND TOWNHOMES

MOBILE HOMES

DUPLEX, TRIPLEX AND FOURPLEX

WARRANTY TWO-YEAR WARRANTY AVAILABLE

NEW CONSTRUCTION

Now Offering

Re-key Coverage* is included

on all Buyer Home Warranties

(up to 6 keyholes and 4 identical keys)

*Limitations apply. See Agreement for details.

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About American Home Shield®

What is a Home Warranty?It’s a one-year service agreement that covers the repair or replacement of many major home system components and appliances that typically break down over time due to normal wear and tear.

Whether you are buying or selling a house, moving can be hectic. A home warranty specifically designed for residential real estate transactions can give you one less thing to worry about — and help keep your home protected from the expense of unexpected covered repairs during the moving process.

What’s the difference between a Home Warranty and Home Insurance?

Home Warranty A home warranty helps protect homeowners against breakdowns. It will help protect a homeowner’s budget against the costs of unexpected covered breakdowns or repairs on items in the home such as:

• Major components of home systems such as furnace, central air unit, electric, plumbing, and water heater

• Two of our three buyer plans include coverage on common household appliances such as refrigerator, washer, dryer, dishwasher, and oven

• There are even options for the buyer to add coverage on items such as pool, spa, and guest unit

Limitations and exclusions apply. See Agreement for details.

Home Insurance Homeowners insurance typically protects homes from things that might happen, like fires, theft or natural disasters. A home warranty helps protect your budget when covered components of home systems and appliances break down due to normal wear and tear.

NOTE: Home insurance policies may vary; please refer to your insurance agent for details on your home’s policy.

Why should you choose American Home Shield?

• As the largest home warranty company in the nation, we accept and pay more service requests than any other home warranty company in the nation - a total of $1.8 billion over the last 5 years.

• A network of more than 14,000 independent professional contractors and 45,000 service technicians.

• The ability to request service online or by phone 24/7/365.

• Our Appliance Discount Program, which provides access to our discounted rates on certain brand appliances.

• Access to a library of custom content, tips, advice and more to help manage your home.

• Discounts from 30% to 50% off retail prices on A/C and furnace filters by visiting discountfilterprogram.com.

With AHS®, you can rely on:

At American Home Shield, our commitment to customer service is our top priority. You can expect the best, every time.

3

Why do I need a Home Warranty?

What does Real Estate Edition mean?

Benefits to Home Buyers The question isn’t whether or not a breakdown will happen; it’s when. Do you have a plan in place for when they do? Our real estate packages protect your house, so you can focus on making it your home.

• Gain confidence and comfort knowing your hard-earned investment is covered by an industry leader.

• Protect your home and budget from the costs of covered repairs related to undetectable pre-existing conditions, such as lack of maintenance and mismatched systems.

• Trust the reliability of our nationwide network of professional home service contractors.

Benefits to Home SellersWhen it comes to selling your home, offering a home warranty in the contract is an excellent way to entice buyers. It shows good faith and offers an assurance to buyers that the home is covered by a warranty for the first year of ownership.

• Mitigate unexpected covered issues from the home inspection to keep your sale on track.*

• Market your listing more effectively by confirming your home is covered against unexpected covered breakdowns.

• Maintain your budget by managing the potentially high costs of covered repairs on included systems.*

* Subject to a $2,000 cap for all trades during listing period.** Real estate edition product and pricing is available up to 60 days from the close of sale.

Buy Now for Special Product Pricing**The Real Estate Edition product and pricing is only available while you are involved in a real estate transaction. Pricing and packages will change sixty days after closing if not purchased during the real estate transaction.

Flexibility to Upgrade Need to upgrade or add options? No problem. Home buyers have 60 days from closing to upgrade or change their coverage options.

Seller Coverage Option*Regardless of the warranty package selected, qualified home sellers can add the Seller Coverage Option for up to 6 months (term renewable upon request and AHS discretion) while their home is on the market. This option will help protect home sellers with the same covered items as the ShieldEssentialSM package, and best of all, no money is due until the home closes.

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There are several AHS Home Warranty packages available during the real estate transaction, making it easy for you to get exactly the coverage you need, at a price you can afford.

What is covered by AHS?

Water Heaters

Plumbing

ClothesWasher/Dryer

Ductwork

Refrigerator

Garbage Disposals

Ranges/Ovens/Cooktops

Built-in Microwave Ovens

Electrical

Heating

Air Conditioning

Built-In Exhaust/Attic/Whole House Fans

Ceiling Fans

Dishwashers

Garage Door Openers

Instant Hot/Cold Water Dispensers

Doorbells

Telephone Wiring

ShieldEssentialSM

ShieldPlusSM

ShieldCompleteSM

Seller Coverage Option

Accessing your American Home Shield Home Warranty Account is just a convenient click away. Register at ahs.com/my-account for:

My Account

An AHS Home Warranty covers repair or replacement of many major components of home systems and appliances, but not necessarily the entire system or appliance. Refer to Agreement for details.

QUICK SERVICE REQUESTS Place your service request online, so you will have more time to enjoy your home.

MOBILE-FRIENDLY ACCESS Control your account from anywhere, including payments and service request updates.

SIMPLE AGREEMENT RENEWALS Maintain your home warranty without going to the post office.

24/7 COVERAGE CHECKLIST See what’s covered and download your agreement anytime.

5

AHS Home Warranty packages for buyers

Optional coverage may be added to any buyer package to include:

• Additional refrigerator units (up to 4, including wine refrigerators up to 6 cubic feet)

• Well pump and septic system

• Pool/spa equipment

• Saltwater pool equipment

• Guest Unit (under 750 sq. ft.)

Optional Coverage

Covers items included in the ShieldEssential Package plus many common, major household appliances.

ShieldPlus

Covers components of the most critical home systems that are often the most expensive to repair and replace (heating, air conditioning, plumbing and more).

ShieldEssential

Offers the most comprehensive coverage, including the items in ShieldEssential and ShieldPlus combined, and some additional home items (like garage door openers and doorbells).

ShieldComplete

NOTE: An AHS Home Warranty covers repair or replacement of many major components of home systems and appliances, but not necessarily the entire system or appliance. Refer to Agreement for details.

Selling your home and would like coverage while it is on the market?

Add the Seller Coverage Option in addition to the package you have chosen to offer the buyer and you will get valuable budget protection for many of your most critical home systems while your home is on the market.

NOTE: Subject to a $2,000 cap for all trades during listing period. Seller Coverage Option renewable upon review after 6-month period, up to 18 months.


High level coverage is included in all three packages. This means even our lowest priced package includes some coverages many other home warranty companies only offer in their higher priced packages. Included in all packages:

• Refrigerant recapture, reclaim & disposal

• Removal of defective equipment

• Permits ($250 per agreement term) when required during a covered repair or replacement

• Code violations ($250 per agreement term) when required during a covered repair or replacement

• Failure due to:

• Lack of maintenance

• Rust & corrosion

• Sediment

• Mismatched systems

• Undetectable pre-existing conditions

• Improper installations, repairs or modifications

6

Check Agreement

Refer to the agreement to verify what items are covered by the American Home Shield® Home Warranty.

Contact Us

If the item is covered, visit ahs.com to place a service request or call our 24/7 customer service line toll-free at 800 776 4663.

Trade Service Call Fee Payment

You will pay a Trade Service Call Fee using the payment source on file. This fee is paid per service (plumber, electrician, etc.), and is typically less than standard service rates.

Contractor Assigned

American Home Shield will then assign a service contractor to come out to assess the breakdown of a covered system or appliance. 96% of the time, AHS assigns the service contractor within 15 minutes or less.

Email Confirmation

A confirmation will be sent to the email address we have on file, verifying the request has been assigned to a service contractor and who the contractor is.

Schedule Service

The assigned service contractor will call during regular business hours to schedule an appointment time to visit the home and diagnose the issue of the covered item.

Diagnosis and Repair

The contractor will diagnose the problem and contact AHS. Based on the contractor’s diagnosis, AHS will determine whether the problem is covered by the home warranty plan. If it is covered, the contractor will repair or replace the covered item.

Follow Up

You will get an email or phone call after any covered service has been performed, so AHS can make sure the problem was resolved to your satisfaction.

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3

7

4

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With American Home Shield, it’s easy to get service for your covered home system components and appliances. Just follow these easy steps below when a covered breakdown occurs:

How does it work?

SYSTEMSAir Conditioning (Including geothermal systems)

Heating (Including geothermal systems)

Ductwork

Plumbing (Including stoppages; sump pumps; plumbing sewage ejector pumps)

Electrical

Water Heaters

APPLIANCESWasher

Dryer

Refrigerator w/Ice Maker and Dispenser (Kitchen refrigerator only)

Built-in Microwave Ovens

Dishwashers

Garbage Disposals

Ranges/Ovens/Cooktops

ADDITIONAL HOME ITEMSCeiling Fans

Telephone Wiring

Doorbells

Garage Door Openers

Instant Hot/Cold Water Dispensers

Built-In Exhaust/Attic/Whole House Fans

Re-key (up to 6 keyholes and 4 identical keys)

HIGH LEVEL COVERAGE INCLUDED ACROSS ALL PACKAGES FAILURE DUE TO: Lack of Maintenance

Rust & Corrosion

Sediment

Mismatched Systems

Undetectable Pre-existing Conditions

Improper Installations, Repairs or Modifications

Refrigerant Recapture, Reclaim & Disposal

Removal of Defective Equipment

Permits ($250 per Agreement Term When Required During a Covered Repair or Replacement)

Code Violations ($250 per Agreement Term When Required During a Covered Repair or Replacement)

OPTIONAL COVERAGE FOR BUYERS (AVAILABLE FOR AN ADDITIONAL COST)

Additional Refrigerators (up to 4, including wine refrigerators up to 6 cubic feet)

Well Pump and Septic System Pumping & Septic Sewage Ejector Pump

Swimming Pool or Spa Equipment

Swimming Pool/Spa Equipment (shared equipment)

Saltwater Pool Equipment

Guest Unit (under 750 sq. ft.)

Trade Service Call FeeThere is a Trade Service Call Fee per service trade (plumber, electrician, etc.), and this is typically less than their standard service rates.

*Subject to a $2,000 cap for all trades during listing period. Coverage renewable at AHS’s option each 6 month period, up to 18 months

Available Buyer Packages

PACKAGES AT A GLANCEIndustry-Leading Service, Coverage and Quality

ShieldEssential ShieldPlus ShieldCompleteSeller Coverage Option*

SEND US YOUR ENROLLMENT APPLICATION

Mail with Payment AHS, P.O. Box 2803 Memphis, TN 38101

Mail without Payment AHS, P.O. Box 849 Carroll, IA 51401

Online: pro.ahs.com Phone: 800 735 4663Fax: 800 329 2478Español: 800 250 2025

As always, homeowners should refer to their AHS Home Warranty Agreement for specific coverage information and limitations. To download a Sample Agreement or to review coverage limitations and exclusions, visit ahshome.com and select “get a quote.”

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© 2018 American Home Shield Corporation. All rights reserved. 16A42

REAL ESTATE EDITIONPricing and Application

New Construction

SFH/Condo/Townhome/Mobile Home

BUYER HOME WARRANTY PACKAGEShield

EssentialShield Plus

Shield Complete

Single Family Home (SFH) $500 $600 $675

Condo/Townhome/Mobile Home $370 $440 $495

New Construction SFH (yrs. 2-5) $825 $990 $1,115

New Construction Condo (yrs. 2-5) $605 $730 $820

For use in TN

Complete your enrollment form1

Select your coverage for buyer2 Select coverage for seller3

American Home Shield® may provide compensation to real estate brokers and their related companies for services provided in connection with its Home Warranty program. In connection with the program, a broker may provide information regarding you and your home to AHS®. By submitting this application, you authorize the broker to share such information with AHS and authorize AHS to use such information in connection with its program. You are not required to buy a Home Warranty and, if you want one, you are not required to buy it through a broker or sales associate.

I accept the benefits of the AHS Home Warranty coverage. I received a copy of the AHS Home Warranty Agreement and understand the key terms, coverage, limitations and exclusions, and I had the opportunity to ask questions regarding such coverage.

I decline the opportunity to purchase the AHS Home Warranty coverage.

Signature Date

Signature Date

Total & Sign4

$75 Trade Service Call Fee

Agents can also order online at pro.ahs.com

AHS also offers 2-year warranty pricing. For more information CALL 800 735 4663.

SELLER COVERAGE OPTION See page 7

BUYER OPTIONS

Additional Refrigerators* $15 $29

Well Pump and Septic System Pumping & Septic Sewage Ejector Pump** $140 $270

Swimming Pool Equipment** $120 $230

Spa Equipment $120 $230

Swimming Pool/Spa Equipment (shared equipment)** $120 $230

Saltwater Pool Equipment** $180 $345

*Available only with the ShieldPlus and ShieldComplete Packages**Not available for Condo/Townhome/Mobile HomeLimitations and exclusions apply. See Agreement for details.

NOTE: Add tax where required by law. To obtain exact tax amounts please call 800 735 4663.

Yes, add the Seller Coverage Option to my Buyer Home Warranty Package

$75

Buyer Home Warranty

Buyer Options Total


Sales Tax

Grand Total

$

$

$

$

$

NOTE: Unless otherwise noted, all prices shown are for a one-year Agreement Term for homes under 5,000 sq. feet. To obtain quotes for single family homes over 5,000 sq. feet, for guest unit pricing, multiple unit properties, and for 2-year pricing plans, please call 800 735 4663.

Agreement Number (provided when AHS receives your application)

PROPERTY INFORMATION

Property Address to be Covered

City State ZIP

Listing Expiration Date (if selling) Home sq. ft.

SELLER INFORMATION

First Name Last Name

Phone Number Email Address

Mailing Address - Only if different from covered property

BUYER INFORMATION

First Name Last Name

Phone Number Email Address

Mailing Address - Only if different from covered property

REAL ESTATE COMPANY INFORMATIONInitiating Real Estate Associate Buyer Seller

Real Estate Company

Main Office Phone Number Fax Phone Number

Agent Name Agent Email

Cooperating Real Estate Associate Buyer Seller


Agent Name Agent Email

CLOSING COMPANY

Closing Company Name


Estimated Closing Date Closing Number

Closing Representative Name Email Address

Basic Plan Includes:

fahw.com | 800.444.9030

FIRST AMERICAN HOME WARRANTY PLANS

Mid-South

Plans start at only $440 for single-family homes

PLUS more coverage for less with our Value Plus and Eagle Premier bundled plans

BIG HVAC COVERAGENo dollar limit on

refrigerant replacement in AC, covers

14 SEER

• Coverage for your home’s crucial systems and appliances

• And much more

• COVERAGE OF UNKNOWN CONDITIONS which can include rust, corrosion, sediment and problems due to lack of maintenance

What is a home warranty?A home warranty is a renewable service contract

offering protection for a home’s major systems and

appliances. First American offers protection to home

buyers, sellers, and current homeowners.

A home warranty can protect home sellers from costs

and delays during the listing period as well as protect

home buyers from costly breakdowns after closing.

Why choose First American?First American is a leading provider of home warranties

with the experience and strength of an industry leader.

For over 30 years, First American has provided quality

protection for homeowners across the nation, through

more than 8.9 million home warranties.

First American

home warranty plans

protect your home

and your budget.

2 3

*In some instances, Homeowner and First American may agree to payment of cash in lieu of repair or replacement.

Payment will be made based on First American’s negotiated rates with its suppliers, which may be less than retail. Please review the

sample contract for specific coverage, terms and limitations.**Paid invoices net of service fees in 2017,

prior to deductions and/or rebates.

An independent pre-screened local service

technician will call and arrange a convenient

time to come to your home. The technician

will diagnose the problem and begin the

repair or replacement process.

There is no limit to the number of service calls you

can make.

When your covered systems and appliances

fail – if we can’t repair them, we will replace

them.* Many of our customers place

multiple calls each year and save hundreds

to thousands of dollars in repair and

replacement bills. Last year, nearly two-

thirds of our customers filed at least one

claim – and many filed more than one.

As a result we paid out over $169 million**

for these repairs and replacements.

It’s so Easy to use

Go to fahw.com or call 800.992.3400

any time a covered item fails, 24/7.

Based on actual invoices paid by First American in 2017 prior to service fees, deductions and/or rebates;

costs may vary in your geographic region. Items listed may be optional or not available on some

plans; please review the sample contract for specific coverage, terms and limitations.

What are the benefits?With a First American home warranty, when a covered

system or appliance fails, if we can’t repair it, we’ll replace

it.* We have a network of independent pre-screened

service providers and technicians and we are committed to

providing you outstanding service and value.

Do I need a home warranty?Home warranty coverage is the best way to protect your

budget against expensive home system and appliance

failures. A home warranty can also take the stress and hassle

out of repairing or replacing home systems and appliances

when they break down.

How can a home warranty protect my budget?The repair and replacement cost graphic illustrates the

impact home system and appliance breakdowns can have

on your budget without the protection of a First American

home warranty.

What’s covered?See page 4 for a sample contract of our product designed

for home buyers and sellers, showing coverage and options

available. It is important to understand what is and isn’t

covered in your specific plan, as well as coverage limitations.

Without a warranty?If you don’t have the protection

of a First American home warranty, this is what home system and

appliance breakdowns can cost:

How do I order?

Choose your plan and options on page 11, and ask your real estate professional

to order your coverage.

web: fahw.com | phone: 800.444.9030

3

Repair Replace

Oven/Range $622 $2,481

Water Heater $535 $1,414

Refrigerator $700 $2,546

Air Conditioning $645 $2,523

Plumbing $439 $1,431

Heating System $634 $2,610

Electrical System $375 $1,592

SHOULD YOU NEED SERVICE PLEASE READ THIS CONTRACT CAREFULLY and then place your claim at firstam.com/warranty or by calling (800) 992-3400.

Have your Contract number, make or model of covered Item and complete street address available. You will pay the $75 service call fee when the independent contractor (Contractor) arrives at your home (one time service call fee per Contract for Optional Subterranean Termite Treatment is $200).

IMPORTANTThis is a Contract for repair or replacement of specified appliances and home systems. This Contract covers only the Items specifically identified in this Contract as covered and excludes all others. Items are not covered unless they are in safe working order at the start of coverage. To be covered, Items must be installed for diagnosis and located within the confines of the perimeter of the foundation of the primary living quarters or garage (except well pump, septic tank, sewage ejector pump, pressure regulator, air conditioning and pool/spa equipment; when applicable). This Contract provides coverage for unknown defects if the defect is not detectable through visual inspection or simple mechanical test (excluding renewal and non-real estate transaction customers). Items include malfunctioning systems and appliances due to lack of maintenance, rust, corrosion and chemical or sedimentary build-up. Unless specified otherwise, any dollar limit mentioned is in the aggregate. First American Home Warranty Corporation (Company) will not reimburse you for services performed without prior approval.

COVERAGE TIME AND RENEWALYou must report defects or malfunctions to Company during the term of this Contract.

1. Coverage begins on Contract Effective Date and continues for 12 months, except;

A. Basic Seller’s Coverage and Seller’s Options (if elected) starts upon receipt of Contract number and continues until expiration of the initial listing period not to exceed 180 days or until close of sale or listing cancellation (whichever is first). Seller’s Coverage may be extended at the discretion of Company.

B. New Construction Coverage begins 12 months after the close of sale and continues for 48 months.

2. Payment is due at close of sale and must be received by Company within 30 days.

3. Offer for future coverage is at Company’s sole discretion. You will be notified of rates and terms for continuation of coverage.

BASIC CONTRACT COVERAGECompany shows examples of components “not covered” to assist your understanding of this Contract; and examples are not exhaustive. It is also important to review Limits of Liability as well as the Options Ordered section of your Home Warranty Summary page.

PLUMBING – Covered

• Pressure regulators• Circulating hot water pump• Bathtub motor, pump and air switch assemblies• Permanently installed sump pumps (ground water only)• Valves: shower, tub, diverter, riser, angle stop and gate valves• Leaks and breaks of water, drain, gas, vent or sewer lines

(except caused by freezing)• Toilet tanks, bowls and mechanisms (replaced with white

builder’s standard as necessary)

Not Covered: Fixtures, faucets, filter, shower head, shower arm, shower enclosure and base pan, caulking and grouting, septic tank, hose bibbs, flow restrictions in fresh water lines, water conditioning equipment, sewage ejectors, saunas or steam rooms, whirlpool jets and fire suppression systems.

NOTE: Company is only responsible for providing access for covered plumbing repairs through unobstructed walls, floors or ceilings and will return the opening to a rough finish. Coverage for diagnosis, access, repair or replacement of items located in or below a concrete slab and items encased in or covered by concrete is limited up to $500.

PLUMBING STOPPAGES – Covered

• Clearing of stoppages in sink, tub, shower drains and toilets. Clearing of sewer and mainline stoppages (including hydrojetting if stoppage is unable to be cleared with cable) to 125 feet of point of access where ground level cleanout is existing. Clearing of lateral drain lines to 125 feet from point of access including accessible cleanout, p-trap, drain or overflow access point.

Not Covered: Stoppages caused by foreign objects, roots, collapsed or broken lines outside the foundation, access to drain or sewer lines from roof vent and costs to locate, access or install a ground level cleanout.

WATER HEATER – Covered (Includes tankless water heaters)

• All parts, except;

Not Covered: Holding or storage tanks, flues and vents, fuel storage tanks and solar equipment.

NOTE: Coverage for diagnosis, access, repair or replacement of any geothermal or water source heat pump, glycol, heated water, steam or water heater/heating combination unit is limited up to $1,500.

4

Sample Contract & Coverage Overview order a First American home warranty web: fahw.com phone: 800.444.9030 fax: 800.772.1151

ELECTRICAL – Covered

• Wiring • Plugs• Junction boxes • Switches and fuses• Conduit • Telephone wiring• Circuit breakers (including ground fault)• Panels and sub panels

Not Covered: Door bells, computer, audio, video, intercom, fixtures, alarm – and all associated wiring or cables. Inadequate wiring capacity, sensor, relay, low voltage systems, power surges, timed circuits, phone jacks and wiring which is the property of the phone company.

NOTE: Company is only responsible for providing access for covered electrical repairs through unobstructed walls, floors or ceilings and will return the opening to a rough finish.

KITCHEN APPLIANCES – Covered (Limit up to $3,500 per appliance)

• Dishwasher • Instant Hot Water Dispenser• Garbage Disposal • Oven/Range/Cooktop• Trash Compactor • Microwave Oven (built-in only)

Not Covered: Rotisseries, lights, knobs, dials, racks, baskets, rollers, removable trays, removable buckets, door glass, interior lining, lock assemblies, magnetic induction cooktops, meat probe assemblies and clocks (unless they affect the primary function of the unit).

GARAGE DOOR OPENERS – Covered

• Switches • Capacitor• Motor • Center rail assembly• Receiver unit • Carriage• Push arm

Not Covered: Remote transmitters, adjustments, doors, gates and gate motors, side rails, hinges and springs.

CENTRAL VACUUM SYSTEM – Covered


Not Covered: Hoses and accessories which are removable.

NOTE: Company is not responsible for gaining or closing access to floors, walls or ceilings to locate the malfunction or to effect repair or replacement.

ATTIC AND EXHAUST FANS – Covered

• All parts.

CEILING FANS – Covered


Not Covered: Light kits and remote transmitters.

ADDITIONAL COVERAGE FOR BUYER AND OPTIONAL COVERAGE FOR SELLERNOTE FOR SELLER: Heating, Central Air Conditioning and Ductwork coverage is optional for the Seller at an additional charge. If elected, Company will pay up to a combined maximum limit of $1,500 during Seller’s Coverage period for such coverage.

HEATING – Covered

• Heat pump • Heating elements • Radiators • Gas, electrical, oil furnaces • Gas valves to furnace • Thermostats (including base) • Baseboard convectors • Heat pump refrigerant recharging • Hydronic circulating pumps

Not Covered: Auxiliary space heaters, cable heat, mini-split ductless systems (including heat pump versions), humidifier/dehumidifier systems or accessories, filters (including electronic air cleaners), registers, fuel storage tanks, heat lamps, fireplaces and key valves, baseboard casings and grills, chimneys, flues and vents, underground or outside components and piping for geothermal or water source heat pumps, well pumps and well pump components for geothermal or water source heat pumps, grain, pellet, or wood heating units (even if only source of heating), electronic, computerized, pneumatic and manual system management and zone controllers and heat pump refrigerant recapture, reclaim and disposal.

NOTE:• Coverage for diagnosis, access, repair or replacement of any

geothermal or water source heat pump, glycol, heated water, steam or water heater/heating combination unit is limited up to $1,500.

• If Company determines that a package unit or the condenser of a central air conditioning or heat pump split system must be replaced, Company will replace the unit with a unit that meets current federal, state or local government efficiency standards. This note also applies to Central Air Conditioning.

5

order a First American home warranty web: fahw.com phone: 800.444.9030 fax: 800.772.1151

CENTRAL AIR CONDITIONING – Covered

• Refrigeration System (Includes heat pump) Thermostats Refrigerant lines

Condensing unit Air handling unit Refrigerant recharging Liquid and suction line dryers Fuses, breakers, disconnect boxes and wiring Evaporator coils (including thermostatic expansion valves)• Evaporative Cooler• Built-in Electric Wall Units

Not Covered: Mini-split ductless systems (including heat pump versions), humidifier/dehumidifier systems or accessories, registers, grills, filters (including electronic air cleaners), gas air conditioners, window units, underground or outside piping and components for geothermal or water source heat pumps, cooler pads, roof jacks or stands, electronic, computerized, pneumatic and manual system management and zone controllers and refrigerant recapture, reclaim and disposal.

NOTE:• Coverage for diagnosis, access, repair or replacement of any

geothermal or water source heat pump, glycol, heated water, steam or water heater/heating combination unit is limited up to $1,500.

• If Company determines that a package unit or the condenser of a central air conditioning or heat pump split system must be replaced, Company will replace the unit with a unit that meets current federal, state or local government efficiency standards.

• When replacing a central air conditioning or heat pump split system, Company will replace any covered component as well as modify the plenum, indoor electrical, air handling transition and duct connections as necessary to maintain compatibility and operating efficiency as required by the manufacturer of the replacement unit, including the installation of thermostatic expansion valves.

DUCTWORK – Covered

• Ductwork from the heating or cooling unit to the connection at register or grill.

Not Covered: Grills and registers, improperly sized ductwork, insulation, dampers and ductwork where asbestos is present.

NOTE: Company is only responsible for providing access for covered ductwork repairs through unobstructed walls, floors or ceilings and will return the opening to a rough finish. Coverage for diagnosis, access, repair or replacement of ductwork located in or below a concrete slab and items encased in or covered by concrete is limited up to $500.

OPTIONAL COVERAGE FOR BUYER AND SELLERNOTE FOR SELLER: The following coverage is optional for the Seller at an additional charge.

NOTE FOR BUYER: The Contract holder may purchase optional coverage up to 60 days from Contract Effective Date. Such coverage is not effective until payment is received by Company and coverage terminates upon Contract expiration.

For new construction coverage, the Contract holder may purchase optional coverage at any time for brand new Items. Such coverage is not effective until payment is received by Company and coverage terminates upon Contract expiration.

SUBTERRANEAN TERMITE TREATMENT – Covered if purchased

• Treatment for subterranean termite infestation.

Not Covered: Infestation in decks or fencing or any infestation outside the confines of the foundation of the home or garage, repair of damage caused by subterranean termites.

Contract holder will pay a one time $200 service call fee per contract to our Contractor for subterranean termite treatment. Repeat visits are free of charge. All work will be performed by a licensed structural pest control contractor.

FIRST CLASS UPGRADE – Covered if purchased

The following list is the additional coverage applied, when the First Class Upgrade is purchased. Optional coverage (OPT) must be purchased for the upgrade to apply to those items. Note: some items are not available (NA) for the seller.

Buyer Seller

• OPT Air Conditioning: Filters, registers, grills, window units.

• OPT Heating: Registers, grills, filters, heat lamps.

• OPT HVAC Lifting Equipment: Company will cover fees associated with the use of cranes or other lifting equipment required to service roof-top heating or air conditioning units.

• OPT Ductwork: Grills, registers.

• • Garage Door Openers: Hinges, springs, remote transmitters.

• • Plumbing: Faucets (replaced with chrome builder’s standard), shower head and shower arm, hose bibbs, toilets (replaced with like quality up to $300 per occurrence).

OPTNA Clothes Washer and Dryer: Knobs, dials.

• • Dishwasher: Racks, baskets, rollers, knobs, dials.

• • Microwave Oven (built-in only): Interior lining, door glass, clocks, racks, knobs.

• • Oven/Range/Cooktop: Rotisseries, racks, knobs, dials, interior lining.

• • Smoke Detector: Both battery operated and hard wired.

• • Trash Compactor: Removable buckets, knobs.

• • Building Permits: Where local building permits are required prior to commencing replacement of appliances, systems or components, Company will pay up to $250 per occurrence for such local building permits. Company will not be responsible for replacement service when permits cannot be obtained.

• • Recapture, Reclaim, Disposal: Company will pay costs related to refrigerant recapture, reclaim and disposal (if required) and the removal of an appliance, system or component when Company is replacing a covered appliance, system or component.

• • Improper Installations and Modifications: Company will repair or replace a system or appliance (excluding roofs and ductwork) that was improperly installed, modified or repaired, or was not properly matched in size or efficiency at any time prior to or during the term of this contract provided the system is not undersized relative to the square footage of area being cooled or heated. In the event that a covered mismatched system or improper installation, modification or repair is in violation of a code requirement, Limited Code Upgrade applies.

• • Limited Code Upgrade: Company will pay up to $250 in the aggregate under this contract to correct code violations when effecting approved repairs or replacements. Company may, at its option, pay the contract holder in lieu of performing the work.

6

First Class UpgradeGreat Value!

7

OPTIONAL COVERAGENOTE FOR SELLER: The following optional coverage is not available.

NOTE FOR BUYER: The Contract holder may purchase optional coverage up to 60 days from Contract Effective Date. Such coverage is not effective until payment is received by Company and coverage terminates upon Contract expiration.

For new construction coverage, the Contract holder may purchase optional coverage at any time for brand new Items. Such coverage is not effective until payment is received by Company and coverage terminates upon Contract expiration.

POOL/SPA EQUIPMENT – Covered if purchased

• Salt water cell • Circuit board • Pumps• Timers • Filters • Pump motors• Heating units • Pool sweep motor and pumps• Valves • Above ground plumbing and electrical

Not Covered: All cleaning equipment, including pop up heads, turbo and actuator valves, pool sweeps, liners, lights, structural defects, solar equipment, inaccessible components, humidifier/dehumidifier systems or accessories, jets and respective parts and components, fuel storage tanks, fill valves, electronic, computerized, pneumatic and manual system management and zone controllers, disposable filtration media, chlorinators, ozonators and other water chemistry control equipment and materials, auxiliary, negative edge, waterslide, waterfall, ornamental fountain and their pumping and motor systems or any other pump or motor that does not circulate water from the pool or spa directly into the main filtration system as its primary function, heat pumps, salt, panel box, remote controls and dials.

NOTE: Coverage for salt water pool/spa equipment salt water cell and circuit board is limited up to $1,500.

KITCHEN REFRIGERATOR – Covered if purchased(Limit up to $3,500)


Not Covered: Insulation, racks, shelves, drawers, tracks, handles, lights, ice crushers, beverage dispensers and their respective equipment, interior thermal shells, food spoilage, stand alone freezers, refrigerators located outside kitchen area and refrigerant recapture, reclaim and disposal.

NOTE:

• Coverage is for any one of the following types of kitchen refrigerator/freezer units: a built-in kitchen refrigerator/freezer unit, a built-in combination of an All refrigerator unit and an All freezer unit, or a free standing kitchen refrigerator/freezer.

• Repair or replacement of ice makers will only be completed when parts are available.

ADDITIONAL REFRIGERATION – Covered if purchased(Limit up to $1,000)

This option provides coverage for the following with a combined total of four appliances: additional refrigerator, wet bar refrigerator, wine refrigerator, free standing freezer and free standing ice maker.

• All parts of a refrigerator (including wet bar and wine refrigerator) and free standing freezer, except;

Not Covered: Kitchen refrigerator, insulation, racks, shelves, drawers, tracks, handles, lights, ice makers, ice crushers, beverage dispensers and their respective equipment, interior thermal shells, food spoilage and refrigerant recapture, reclaim and disposal.

• Free standing ice maker: All parts which affect the primary function of the ice maker and

water dispenser, except;

Not Covered: Filters, removable components which do not affect the primary function, interior thermal shells, insulation and refrigerant recapture, reclaim and disposal.

CLOTHES WASHER AND DRYER – Covered if purchased• All parts, except;

Not Covered: Plastic mini-tubs, soap dispensers, filter and lint screens, knobs and dials, venting and damage to clothing.

WELL PUMP – Covered if purchased(Limited to one well pump per home; Limit up to $1,500)

• All parts of well pump utilized as a source of water to the home, except;

Not Covered: Well casings, booster pumps, pumps used exclusively for irrigation, animals and non-living quarters, piping or electrical lines, holding, pressure or storage tanks, redrilling of wells, damage due to lack of water, tampering, well pump and well pump components for geothermal or water source heat pumps, improper installation and access to repair well pump system.

SEPTIC TANK PUMPING/SYSTEM – Covered if purchased(Limit up to $500 for tank system)

Pumping• One time pumping per Contract if the stoppage is due to

septic tank backup, except;

Not Covered: Septic tanks, leach lines, cesspool, mechanical pump or systems, cost of locating or to gain access to the septic tank, cost of hook-ups, disposal of waste and chemical treatment of the septic tank or sewer lines.

System • Jet pump • Aerobic pump• Sewage ejector pump• Septic tank line from house to septic tank

Not Covered: Seepage pits, leach lines, leach beds, and cleanout.

LIMITED ROOF LEAK – Covered if purchased(Limit up to $1,000)

• Leaks caused by rain to tar and gravel, tile, shingle, shake and composition roofs are repaired as long as leaks are caused by normal wear and tear and the roof was in water tight condition on Contract Effective Date. If replacement of the existing roof, in whole or in part, is necessary, Company’s responsibility is limited to the estimated cost of repair of the leaking area only, as if the repair of that area were possible.

Not Covered: Roofs over detached structures, roof leaks caused by or resulting from: roof mounted installations, metal roofs, improper construction or repair, missing or broken materials, skylights, patio covers, gutters, drains, downspouts, scuppers, chimneys and defects in balcony or deck serving as a roof, routine periodic maintenance and consequential water damage.

Company will direct a Contractor to contact you for an appointment or, at its option, may authorize you to contact a Contractor directly. If authorized, you will be given a spending limit established by Company. Secondary or consequential water damage is not covered by this contract.

NOTE: Service delays frequently occur during the first rains of the season or in heavy storms. While we will make every effort to expedite service, no guarantees can be made.

LIMITS OF LIABILITY1. Common areas and facilities of mobile home parks and

condominiums are not covered. Common systems and appliances not located within the confines of each individual unit are excluded.

2. Repairs or replacements required as a result of missing parts, fire, flood, smoke, lightning, freeze, earthquake, theft, storms, accidents, mud, war, riots, vandalism, improper installation, acts of God, damage from pests, lack of capacity or misuse are not covered by this Contract.

3. Liability is limited to repair or replacement cost of Item due to normal wear and tear. Cosmetic defects are not covered.

4. Company is not responsible for consequential, incidental, emotional distress, pain or suffering, tort or exemplary damages, secondary damage, loss resulting from the malfunction of any Item, or a Contractor’s delay or neglect in providing, or failing to provide, repair or replacement of an Item.

5. Solar systems and components including holding tanks are not covered. Electronic, computerized, pneumatic and manual system management and zone controllers are not covered.

6. Company is not responsible for the following: any corrections, repairs, replacements, upgrades, inspections or other additional costs to comply with federal, state or local laws, utility regulations, zoning or building codes; paying any costs relating to permits, haul away fees, construction, carpentry or relocation of equipment; gaining or closing access to Items except where noted in this Contract; and, alterations or modifications made necessary by existing equipment or installing different equipment except where noted in the Central Air Conditioning section of this Contract. Company will not alter structure to effect repair or replacement, nor refinish or replace cabinets, countertops, tile, paint, wall or floor coverings or the like.

7. Company will not effect service involving hazardous or toxic materials, including asbestos or any other contaminants. Company is not responsible for any claim arising out of any pathogenic organisms regardless of any event of cause that contributed in any sequence to damage or injury. Pathogenic organisms mean any bacteria, yeasts, mildew, virus, fungi, mold or their spores, mycotoxins or other metabolic products.

8. Contract covers only single family residential-use property, residential-use resale property or residential-use new construction property. Residential property over 5,000 square feet, multiple units, guest houses and other structures are covered if the appropriate fee is paid. Contract is for owned or rented residential property, not for commercial property or premises converted into a business, including but not limited to, nursing/care homes, fraternity/sorority houses or day care centers.

9. Company will determine, at its sole discretion, whether a covered system or appliance will be repaired or replaced. When replacing any appliance, Company will not pay for any failures that do not contribute to the appliance’s primary function including, without limitation, TVs or radios built into the kitchen refrigerator. Company will replace with equipment of similar features, efficiency and capacity but is not responsible for matching brand, dimensions or color. Company may install a smaller capacity unit, including but not limited to water heaters and furnaces, if the projected output of the replacement unit is similar to, or greater than, the replaced existing unit. Company reserves the right to replace with a rebuilt component or part or repair systems and appliances with non-original manufacturer’s parts.

10. Company may obtain a second opinion.11. Company is not responsible for repairs arising from

manufacturer’s recall of covered Items, manufacturer’s defects or for Items covered under an existing manufacturer’s, distributor’s or in-home warranty. The covered Items must be domestic or commercial grade and specified by the manufacturer for residential use.

12. Company is not responsible for repair or replacement of any system, appliance, component or part thereof that has

previously, or is subsequently, determined to be defective by the Consumer Product Safety Commission or the manufacturer, and for which either entity has issued, or issues a warning or recall, or when a failure is caused by manufacturer’s improper design, use of improper materials, formula, manufacturing process or manufacturing defect.

13. This Contract does not cover routine maintenance.

CUSTOMER SERVICE1. Telephone service is available at all times. During normal working

hours your call will be dispatched within 4 hours of confirmation of coverage. The services contracted for will be initiated under normal circumstances by the Contractor within 48 hours after request is made by the Contract holder. Contract holder’s telephone call to Company describing the problem is considered sufficient notice. Company will commence diagnosis without first requiring the completion of a written claim form or other such form of proof of loss. When your coverage is confirmed, Company will dispatch your call to a qualified Contractor. The Contractor will call you to schedule a mutually convenient appointment time; additional efforts are made in emergency situations. If you should request Company to perform non-emergency service outside of normal business hours, you will be responsible for payment of additional fees, including overtime charges.

2. Contract holder pays the $75 service call fee for each separate trade call. Trade call means each visit by an approved Contractor, unless multiple visits are required to remedy the same problem. Persons dispatched for trade calls are independent contractors, not agents or employees of the Company. Company warrants Contractor’s work for 30 days. If the Item fails outside this time period, an additional service call fee will be charged. Failure to pay the service call fee may delay processing of future claims. Subterranean Termite Treatment customers only: there is a one time $200 service call fee per Contract for Optional Subterranean Termite Treatment.

3. Sometimes Company may not be able to locate a contractor to service your claim and may request that you contact an independent licensed contractor. Covered repairs or replacements will be authorized if the work can be completed at an agreed upon rate. If your contractor does not bill Company directly you will be reimbursed the authorized amount upon receipt of a paid invoice.

4. Contract holder and Company may agree on payment of cash in lieu of repair or replacement. Payment is made based on Company’s negotiated rates with its suppliers, which may be less than retail.

5. Sometimes there are problems and delays in securing parts or equipment. When the Items are secured, they are installed promptly without any further service charge.

TRANSFER OF CONTRACTIf your covered property is sold during the term of this Contract, you have the right to assign this Contract provided that you notify Company of the change in ownership and must submit the name of the new owner by phoning (800) 444-9030 to transfer coverage.

CANCELLATIONObligations of this Contract are backed by the full faith and credit of the Contract Provider, First American Home Warranty Corporation (Company), and are not guaranteed by a service contract reimbursement insurance policy.Unless allowed by law, this Contract is noncancelable other than by mutual agreement of the Contract holder and Company.Contract holder’s request for cancellation must be in writing and can be submitted to [email protected] will not cancel your Contract except for any of the following reasons:1. Nonpayment of Contract fees when due.2. The subscriber’s fraud or misrepresentation of facts material to

8

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the issuance of this Contract, or in presenting a claim for service thereunder.

3. This Contract provides coverage prior to the time that an interest in residential property to which it attaches is sold and the sale of the residential property does not occur.

Mississippi and Tennessee Residents Only: If this Contract is cancelled, the Contract holder shall be entitled to a pro rata refund of the paid Contract fee for the unexpired term, less a $50 administrative fee and all service costs incurred by Company.Alabama and Arkansas Residents Only: If this Contract is returned for cancellation within 30 days of the time this Contract is mailed or within 20 days of delivery to the Contract holder and no claim has been made, this Contract is deemed void and the Contract holder shall be entitled to a refund of the full purchase price. The right to void this Contract is not transferable and shall apply only to the original Contract purchaser and only if no claim has been made prior to its return to Company.If a claim has been made or if this Contract is cancelled at any other time, the Contract holder shall be entitled to a pro rata refund of the paid Contract fee for the unexpired term, less a $50 administrative fee ($25 administrative fee for Alabama residents) and all service costs incurred by Company.If Company cancels this Contract, Company shall use the last known address on record to send by first-class mail a written notice to the Contract holder at least 30 days prior to the cancellation that states the effective date and reason for cancellation. In such case, the Contract holder shall be entitled to a pro rata refund and will not be charged a cancellation fee.Any refund due to the Contract holder shall be paid or credited within 30 days after this Contract is returned to Company. A 10% penalty of the purchase price shall be added per month to a refund not paid or credited every 30 days thereafter.Georgia Residents Only: The Contract holder may cancel this Contract at any time upon demand and surrender of the Contract to Company and in the event of such cancellation, Company will refund to the Contract holder the excess of paid charges above customary short rates for the expired term.Cancellation for Georgia residents shall conform to the requirements of Section 33-24-44 of the Georgia Insurance Code.

YOUR DUTIESYou are responsible for the following: (i) Protecting appliances/systems; (ii) Reporting claims promptly; (iii) Installing and maintaining appliances/systems following manufacturer’s specifications and (iv) Maintenance if the Contractor determines it is required to achieve manufacturer results of systems and appliances.

MISCELLANEOUSGeorgia Residents Only: THIS IS NOT A CONTRACT OF INSURANCE. If Company fails to pay any valid claim within 60 days after due proof of loss has been filed, a claimant is entitled under Georgia law to make such claim directly against Fidelity and Deposit Company of Maryland at the address shown on your Home Warranty Summary page.

RESOLUTION OF DISPUTESThis provision constitutes an agreement to arbitrate disputes on an individual basis. Any party may bring an individual action in small claims court instead of pursing arbitration. All disputes and claims arising out of or relating to the Contract must be resolved by binding arbitration. This agreement to arbitrate includes, but is not limited to, all disputes and claims between Company and the Homeowner, Company and the Seller, and claims that arose prior to purchase of the Contract. This agreement to arbitrate applies to Company, Homeowner and Seller, and their

respective parent and subsidiary companies, affiliates, agents, employees, predecessors and successors in interest, assigns, heirs, spouses, and children. As noted above, a party may elect to bring an individual action in small claims court instead of arbitration, so long as the dispute falls within the jurisdictional requirements of small claims court.

Any arbitration must take place on an individual basis, and Company, the Homeowner and the Seller agree that they are waiving any right to a jury trial and to bring or participate in a class, representative, or private attorney general action, and further agree that the arbitrator lacks the power to consider claims for injunctive or declaratory relief, or to grant relief affecting anyone other than the individual claimant.The arbitration is governed by the Commercial Arbitration Rules and the Supplementary Procedures for Consumer Related Disputes (the “AAA Rules”) of the American Arbitration Association (“AAA”), as modified by this Agreement, and will be administered by the AAA. Company will pay all AAA filing, administration and arbitrator fees for any arbitration it initiates and for any arbitration initiated by another party for which the value of the claims is $75,000 or less, unless an arbitrator determines that the claims have been brought in bad faith or for an improper purpose, in which case the payment of AAA fees will be governed by the AAA Rules.The arbitration will take place in the same county in which the property covered by the Home Warranty Contract is located. The Federal Arbitration Act will govern the interpretation, applicability and enforcement of this arbitration agreement. This arbitration agreement will survive the termination of this Warranty Contract.

AGREEMENTThis Agreement constitutes the entire agreement between the Parties and supersedes all prior and contemporaneous agreements and understandings of the Parties. No modifications to this Agreement are effective unless in writing and signed by both Parties.

AAMTG 10/18 Ver. 0X.B/0Y.B/0XEPU.B/0Z.B

Mid-South region includes: Alabama, Arkansas, Mississippi, and Tennessee.

First American home warranty plans have reasonable dollar limitations on coverages. Although this sample contract provides specific details, here is a quick reference for your convenience.

Warranty Coverage Dollar Limitations

DIAGNOSIS, ACCESS, REPAIR AND/OR REPLACEMENT LIMITS

Steam, Heated Water or Glycol Heating .............................. $1,500

Per Appliance .......................................................................... $3,500

Additional Refrigeration (up to 4 units) ................................ $1,000

Salt Water Pool/Spa Equipment............................................ $1,500

Seller’s Heating, Central Air Conditioning and Ductwork ... $1,500

Well Pump ............................................................................... $1,500

Limited Roof Leak ................................................................... $1,000

Concrete Encased Items ........................................................... $500

Toilet Replacement Under Upgrade (per occurrence) ........... $300

Code Violations Under Upgrade .............................................. $250

Permits Under Upgrade (per occurrence)................................ $250

Septic Tank System .................................................................... $500

All Coverage limits are in the aggregate unless otherwise specified.

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Our plans cover unknown conditions which can include rust, corrosion, sediment, problems resulting from lack of maintenance and much more!

Available Coverage

Mid-South – Choose your coverage and options

Buyer’s coverage for 1 year, seller’s listing coverage

maximum 180 days.

Seller’s optional coverage is available when basic

buyer’s/seller’s coverage is selected.

Buyer’s Coverage for Multiple Units and

New Construction under 5,000 sq. ft.

Duplex $615

Triplex $925

Fourplex $1,230

New Construction $660

Log in at fahw.com to get a quote for option pricing.

Call 800.444.9030 for quotes on:

homes over 5,000 sq. ft.,

5-10 units, guest homes and

optional coverage pricing

for new construction and

multiple unit homes.

See contract for coverage details.

*One time service call fee per plan for termite treatment is $200

It’s so Easy to use

Go to fahw.com or call 800.992.3400 any time a covered

item fails, 24/7.

Order online, by phone, or fax: web: fahw.com | phone: 800.444.9030 | fax: 800.772.1151

Property Type - under 5,000 sq. ft. Buyer Buyer

Single-Family Home $550 $615

Condo/Townhome/Mobile Home $485 $540

Systems and Appliances Buyer Seller Buyer Buyer

Heating (optional)

Ductwork (optional)

Central Air Conditioning (optional)

Electrical System

Garage Door Openers

Attic, Ceiling and Exhaust Fans

Central Vacuum System

Plumbing System includes polybutylene piping

Plumbing Stoppages

Toilet Tanks and Bowls

Water Heater

Circulating Pump

Sump Pump

Pressure Regulators

Built-In Microwave

Dishwasher

Oven/Range/Cooktop

Garbage Disposal

Instant Hot Water Dispenser

Trash Compactor

Heating, Central Air Conditioning and Ductwork (included) $70

Kitchen Refrigerator $50 N/A

Clothes Washer and Dryer $85 N/A

First Class Upgrade (See page 6) $99

Additional Refrigeration (up to 4 units) $50 N/A $50 $50

Pool and/or Spa Equipment $180 N/A $180 $180

Limited Roof Leak $100 N/A $100 $100

Subterranean Termite Treatment* $49 $49

Septic Tank Pumping/System $75 N/A $75 $75

Well Pump $85 N/A $85 $85

Eagle Premier

Buyer’s/Seller’s Coverage

$75 Service Call Fee

SYST

EM

SPL

UM

BIN

GA

PPLI

AN

CE

SO

PTIO

NS

$99

Basic Plan Value Plus

$440

$385

$49

2. Select Coverage and OptionsBasic Plans $75 Service Call Fee – Prices listed are for homes under 5,000 sq. ft.

Buyer’s/Seller’s Coverage Buyer’s coverage 1 year, seller’s coverage maximum 180 days.

Single-Family Home $440 Condominium/Townhome/Mobile Home $385

Multiple UnitsBuyer’s coverage only. Not available for New Construction. Log in at fahw.com to get a quote for option pricing.

Duplex $615 Triplex $925 Fourplex $1,230

New ConstructionBuyer’s coverage only. Covers years 2-5. Log in at fahw.com to get a quote for option pricing.

Single-Family Home/Condominium/ Townhome/Mobile Home $660

Value Plus PlansBuyer’s coverage includes Basic Plan, Kitchen Refrigerator and Clothes Washer/Dryer.

Single-Family Home ($25 Savings!) $550 Condominium/Townhome/Mobile Home ($35 Savings!) $485

Eagle Premier PlansBuyer’s coverage includes Basic Plan, First Class Upgrade, Kitchen Refrigerator and Clothes Washer/Dryer.

Single-Family Home ($59 Savings!) $615 Condominium/Townhome/Mobile Home ($79 Savings!) $540

Optional CoveragePrices listed are for homes under 5,000 sq. ft. Seller’s optional coverage available when basic buyer’s/seller’s coverage is selected. One time service call fee per plan for termite treatment is $200.

For Seller Heating, Central Air Conditioning and Ductwork $70

For Buyer and/or Seller First Class Upgrade for Basic and Value Plus Plans (See page 6) $99 Subterranean Termite Treatment $49

For Buyer Kitchen Refrigerator $50 Clothes Washer/Dryer $85 Additional Refrigeration (Up to 4 units) $50 Pool and/or Spa Equipment (Includes Salt Water Pool/Spa Equipment. No additional charge if separate equipment.) $180 Limited Roof Leak $100 Septic Tank Pumping/System $75 Well Pump $85

Optional Coverage Total $ _______

Application If placing your order online or by phone, complete this application and have your information ready.

Home Warranty Plan $___________ + Optional Coverage $___________ = Total $___________

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1. Address to be CoveredStreet Address ________________________________________________Unit # ________ City ________________________State ______Zip _______________

REAL ESTATE COMPANY _______________________________________Office Phone # ______________________

Referring Agent _______________________________________________Representing Buyer Seller Email __________________________________

OTHER BROKER COMPANY (if applicable) ________________________Office Phone # ______________________

Agent ________________________________________________________Representing Buyer Seller Email __________________________________

CLOSING COMPANY __________________________________________Closing Officer’s Name __________________________________________________

Office Phone # ____________________________________Estimated Close Date __________________ File # _______________________________________

BUYER’S Name ________________________________________________Phone # __________________ Email _______________________________________

SELLER’S Name _______________________________________________Phone # __________________ Email _______________________________________

3. Acceptance or Waiver I ACCEPT the home warranty coverage and options I have marked above.

I DECLINE the benefits of this coverage. I agree not to hold the above real estate company, broker and/or agents liable for the repair or replacement of a system or appliance that would otherwise have been covered by this plan.

Signature ______________________________________________________________________________ Date _______________________________The real estate agent offering this program does so as a service to protect their client’s best interest. They receive no direct commission or compensation from First American Home Warranty. Member of the NATIONAL HOME SERVICE CONTRACT ASSOCIATION.Agents: Please give your client a sample contract. Contract will be sent to the buyer upon receipt of payment by First American. Confirmation #________________

Web: fahw.com | Phone orders: 800.444.9030 | Fax orders: 800.772.1151

Get the benefits of First American home warranty coverage today.

1. What is a home warranty?A home warranty is typically a one-year service contract designed to protect the family budget from unexpected, costly repairs on home systems and appliances.

2. What is covered in the plans?There are several plans and options to choose from to best suit the home’s specific requirements. Basic plans typically include coverage for: kitchen appliances, water heaters, plumbing, plumbing stoppages, electrical, heating system, ductwork, instant hot water dispenser, whirlpool bath motor and pump assemblies and more. Optional covered items can range from pool/spa equipment, washer/dryer, kitchen refrigerator, air conditioning, well pump and more. Plans and optional covered items vary in geographic areas and are detailed in First American contracts.

3. What is a service call fee?This is the fee paid to the service technician at the time of the appointment.

4. Is it safe to assume there are no costs other than the service fee when a covered item breaks down?Unfortunately, no. A home warranty covers only items listed as covered and excludes all others. For instance, costs could arise for the homeowner from modifications or code upgrades when a system or appliance is replaced.

5. Who do I contact when covered items fail? Any time a covered item fails, contact First American at fahw.com or call 800.992.3400 to request service. It is important that First American is contacted first, we do not reimburse for services performed without approval.

Top 10 home warranty FAQs

6. How does the claim process work?Once First American receives the request and coverage is confirmed, a local service technician will call the homeowner to arrange a mutually convenient day and time to go to the home and diagnose the failure.

7. How quickly are claims handled?Once coverage is confirmed, the contractor typically receives the claim dispatch within four hours during regular business hours. Normally, the services will be initiated by the technician within 48 hours after the request is made. Simple repairs are usually made on the first visit, however, if items must be ordered an additional visit(s) may be needed to complete the repair or replacement.

8. What is an emergency repair and how are these claims handled?First American considers it an emergency when the failure of a covered item renders the home uninhabitable; in these circumstances, First American will make all reasonable efforts to expedite emergency service.

9. How is it determined if a failure is covered or not?In general, coverage is limited to failures caused by normal wear and tear and limited to the terms of the contract. For example, cosmetic defects are not covered.

10. How are known pre-existing conditions determined versus unknown pre-existing conditions?Unknown conditions are covered if, at the time coverage begins, the defect or malfunction is not known or could not have been reasonably observed by looking at or operating the system or appliance.

First American Home Warranty Corporation makes no express or implied warranty respecting the information presented and assumes no responsibility for errors or omissions. First American, the eagle logo, firstam.com, and First American Home Warranty Corporation are registered trademarks of First American Financial Corporation and/or its affiliates. First American Home Warranty Corporation also operates as First American Home Warranty Corporation of Florida in the state of Florida.©2018 First American Home Warranty Corporation. All rights reserved. MIDS_PB_8_18

Order online, by phone, or fax: fahw.com | 800.444.9030Fax: 800.772.1151Service: 800.992.3400

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