GOSHORN LAKE COTTAGE CONDOMINIUMS

 

                                                        PURCHASE AGREEMENT

 

 

            THIS AGREEMENT is made by RCNE, Inc., a Michigan corporation, of 3581 – 65th Street, Saugatuck, Michigan (the "Developer"), and                                                                                  

                                                                                                                                (the "Purchaser"),

Telephone:  Business                                                      Home                                                          ,

Address:                                                                                                     I.D. No.                           

 

1.  PURCHASE OF UNIT.  Purchaser agrees to purchase from the Developer, under the terms and conditions of this Agreement, the exclusive ownership of Unit No.          in Goshorn Lake Cottage Condominiums (the "Project") as shown on the site plan of the Project prepared by Nederveld Associates, Inc., consulting engineers and surveyors, which has been reviewed and approved by the Purchaser, together with the undivided percentage interest appurtenant to the Unit in the common elements of the Project as described in the Master Deed (the "Unit").

 

2.  TERMS OF PURCHASE.  Purchaser agrees to pay to the Developer the Purchase Price indicated below, at the time and in the manner provided by this Agreement:

 

BASE PRICE                                                                                      $                                   

 

EXTRAS (From Exhibit A)                                                                   $                                   

 

TOTAL PURCHASE PRICE                                                              $                                   

 

Down Payment:

 

1.         Amount paid upon execution of this Agreement             $                                 

 

2.         Amount due nine (9) business days after delivery

of  Section 84a Documents                                           $                                   

 

3.                                                                                       

                                                                                                 

                                                                                                                        $                                 

         

                        4.         Total preclosing payments                                             $                                   

 

Balance of Cash Payment Due at Closing                                              $                                 

 

 

Check Box if applicable:

 

Purchaser will pay full purchase price in cash.

 

This Agreement is contingent upon Purchaser's ability to obtain a mortgage commitment for $                    , for which the Purchaser agrees to apply within fifteen (15) days after delivery of Section 84a Documents and agrees to accept promptly if tendered.

 

The parties agree that at closing they will enter into a land contract for $                , with standard Condominium Rider attached, at an interest rate of        % per annum and amortized over         years, but due and payable in         years, which the Purchaser has examined and approved.

 

            3.         OTHER CONDITIONS.  The General Conditions attached to this Agreement are incorporated by reference.  Purchaser acknowledges that there are no written understandings with respect to the Purchase of the Unit except as described in this Agreement, and that no verbal representations have been made to Purchaser by the Developer or any person acting on its behalf.

 

4.         ADDITIONAL TERMS.                                                                                            

                                                                                                                                                           

                                                                                                                                                           

                                                                                                                                                           

                                                                                                                                                           

 

This offer is subject to acceptance by the Developer within ten (10) days of Purchaser's offer. If the Developer does not accept this offer within such time period, the deposit will be returned and this offer shall become null and void.  Upon written acceptance by the Developer, this Agreement shall become a contract subject to all of its terms and conditions.

 

Dated:                                                                                                                                                 Purchaser

 

                                                                                                                                                                        Purchaser

                                                                       

                                                                        This offer is accepted by the Developer.

 

Dated:                                                              RCNE, INC.

                                                                       

                                                                        By                                                                         

 

                                                                        Its                                                                         


GENERAL CONDITIONS TO GOSHORN LAKE COTTAGE CONDOMINIUMS

                                                        PURCHASE AGREEMENT

 

5.         PLAN OF DEVELOPMENT.  The Developer is engaged in the development by conversion of a condominium project known as Goshorn Lake Cottage Condominiums, to consist of not more than 24 resort Units located in the Township of Saugatuck, Allegan County, Michigan (the "Project"), and has organized a Michigan non‑profit corporation (the "Association") for the purpose of operating and maintaining the common elements of the Project.  All Co‑owners of Condominium Units in the Project shall become members of the Association and shall be subject to and abide by all the terms and provisions contained in the Master Deed, Condominium By‑Laws and Subdivision Plan of the Project and in the Articles of Incorporation, By‑Laws and Rules and Regulations, if any, of the Association of Co‑owners.

 

            6.         UNIT TO BE PURCHASED. The purchase of the Unit shall include all standard appliances and fixtures which are owned by the Developer and are situated in the Unit as of the date of closing, but no furnishings or extra features shall be included in the purchase price unless specifically provided for in the basic plans or on Exhibit A attached to this Agreement.  Linens, bed-spreads, towels and the like located in any Unit are for tenant use only and are not considered a part of the Unit for purposes of this Agreement.

 

The Unit, and Purchaser's rights to the Unit, shall be subject to the terms of the Michigan Condominium Act (Act 59, Public Acts of 1978), as amended (the "Act").

 

7.         ESCROW PROVISIONS.  All sums received by the Developer from Purchaser pursuant to this Agreement shall be deposited with Chicago Title Insurance Company as Escrow Agent (or such other Escrow Agent qualified to serve as such under the Act as may be later substituted by the Developer in such capacity), under an Escrow Agreement between the Developer and such Company attached as Exhibit B and incorporated  herein by reference, the terms of which are accepted by Purchaser who agrees to be bound thereby as though a party to the Agreement.  In the event of Purchaser's withdrawal from this Agreement prior to the date on which it becomes a binding Purchase Agreement, such funds shall be returned to the Purchaser within three (3) business days after written notification of such withdrawal has been received by the Escrow Agent, and all rights and liabilities of the Purchaser and Developer under this Agreement shall wholly cease and terminate.

 

If the Purchaser orders modifications to his Unit or the  acquisition and installation of extras for the Unit after this Agreement becomes binding upon him/her, the Developer may require an additional sum to be paid in escrow not to exceed the full amount of  the  estimated  cost  of  such extras.  The Purchaser shall pay such sum(s) within ten (10) days of the Developer's demand, and the Developer may refuse to proceed with the completion of the Unit if such amount is not paid in a timely manner.

 

8.         FINANCING MATTERS.  If the Purchaser intends to purchase the Unit for cash (i.e. without financing), he/she shall provide the Developer with evidence acceptable to the Developer of Purchaser's ability to close without financing within ten (10) working days after the date of acceptance of this Agreement by the Developer.

 

If the Purchaser intends to finance the purchase of the Unit, he/she shall promptly and diligently pursue financing.  No later than thirty (30) days prior to the estimated date of closing on the Unit, Purchaser shall provide the Developer with written confirmation from the Purchaser's lender of his/her ability to consummate the sale in accordance with this Agreement.

 

Any information provided by the Developer to the Purchaser relating to financing sources is intended only as an accommodation, and the Purchaser is entitled to secure financing from any institution or source, and upon any terms consistent with this Agreement.  All costs related to obtaining financing shall be the responsibility of the Purchaser, unless specifically agreed to in writing by and between the parties.

 

9.         CANCELLATION RIGHTS OF PURCHASER.  This Agreement shall not become binding and the Purchaser may withdraw without cause and without penalty if such withdrawal is made before conveyance of the Unit and within nine (9) business days after receipt by the Purchaser of  copies of the documents required by Section 84a of the Act.  If the Purchaser does not withdraw as provided above, this Agreement shall become binding upon him/her at the expiration of nine (9) business days following receipt by the Purchaser of the documents specified above (including the day on which the documents are received if that day is a business day).

 

10.       CANCELLATION RIGHTS OF DEVELOPER.  If, prior to the date on which this Agreement becomes a binding purchase agreement, the Developer determines not to convert the unit to be purchased or for any other reason desires to withdraw as a party to this Agreement, the Developer shall so notify the Purchaser in writing.  In either case, the Developer reserves the right to cause all sums paid under this Agreement to be returned to the Purchaser or his successors, in which event all rights of the Purchaser shall cease and terminate without further liability on the part of the Developer.

 

It is also understood that Purchaser's credit is subject to approval by the Developer and by any proposed mortgagee.  Subsequent to the date on which this the Agreement becomes a binding purchase agreement, the Purchaser's rights may be canceled by the Developer in the event that the Purchaser fails to provide written confirmation from a lender as required by Paragraph 8 at least thirty (30) days prior to the estimated closing date on the Purchaser's Unit.  In such event, the Developer shall cause all of the sums paid by the Purchaser to be returned to him/her and this Agreement shall be deemed null and void and all rights of the Purchaser and the Developer under this Agreement shall cease and terminate without further liability on the part of either party.

 

11.              CONVEYANCE OF TITLE.  The Developer agrees to convey to Purchaser good and merchantable title to the Unit at closing, subject to:  (1) current general real estate taxes; (2) special city or county taxes or assessments for improvements not yet completed; (3) easements, covenants, restrictions and building lines of record; (4) applicable zoning and building laws or ordinances; (5) acts done or suffered by the Purchaser; (6) the Act; (7) the Master Deed for the Project and all

amendments to it; and (8) liens and other matters over which the title insurer commits to insure.  At or prior to closing, Developer shall provide to the Purchaser a standard form commitment for issuance of a policy of title insurance by a licensed Title Insurance Company designated by the Developer, showing title in Purchaser subject to the general printed exceptions contained in the policy and the title exceptions described above, and promptly after closing shall cause to be issued and delivered to Purchaser an owner's policy of title insurance based  upon such commitment.  The title policy or commitment shall be conclusive evidence that good and merchantable title is being conveyed to the Purchaser, and shall be in the amount of the purchase price designated in Paragraph 2 of this Agreement.

 

The Purchaser acknowledges that he/she has been advised that public sewer is being extend-ed to 65th Street by the Township of Saugatuck.  When completed, each Unit in the Goshorn Lake Project will be required to pay a sewer assessment imposed by the Township.  Those Unit owners who wish to utilize the public sewer system will also be charged a hook-up fee by the Township.  These fees and assessments are the responsibility of the individual Unit owners, and Developer assumes no responsibility for their payment.

 

12.       CLOSING.  Purchaser agrees to consummate the purchase of the Unit within 10 days after written notice from the Developer that the Developer is prepared to tender title and possession, and to pay the balance of the purchase price designated in Paragraph 2 which shall be disbursed in accordance with the terms of the Escrow Agreement referred to above.

 

13.       SETTLEMENT FEES AND PRORATIONS.

 

A.        The Purchaser shall pay for recording the deed to the Unit, mortgage costs (if any), and other closing costs customarily paid by purchasers of comparable real estate in Allegan County, Michigan.  The Developer shall pay for an owner's policy of title insurance and transfer taxes imposed upon the deed.

 

B.         Real estate taxes, current installments of special assessments, rents, condominium assessments, insurance premiums and any other items customarily prorated shall be adjusted to the date of closing.  Real estate taxes shall include all taxes billed or to be billed in the year of closing.  Calendar year taxes to be levied will be estimated, if necessary, using the taxable value and the millage rate(s) in effect on the day of closing, broken down to a per diem tax payment and prorated to the date of closing with Seller paying the portion from January 1 to the date of closing.

 

                        C.         At closing, the Purchaser shall also deposit with the Developer on behalf of the Association both the prorata share of the current monthly assessment for the Unit and an additional sum of $270. for the reserves of the Association. The Developer will match this payment so that a total of $540 will be paid into the reserves at the closing of each Unit.  Such reserves may be used by the Association either for working capital and/or as a reserve for major repair and replacement of the common elements.  The reserve payment is not refundable and shall not be applied toward any future monthly installment or annual assessment of the Association.

 

14.       POSSESSION.  The Developer agrees to deliver possession of  the Unit to Purchaser at the time of closing.  Such possession may be subject to the rights of tenants in possession under outstanding rental agreements, which Purchaser agrees to accept and honor in accordance with the terms of the Rental Management Agreement.

 

15.       ASSUMPTION OF OBLIGATIONS.  The Developer has caused to be recorded in the office of the Register of Deeds of Allegan County, Michigan, a Master Deed for the Project which depicts the size and location of the unit to be purchased.  The form and contents of such Master Deed is within the sole  discretion of the Developer; provided, however, that a copy of the recorded Master Deed shall be furnished to the Purchaser at least 9 business days before this Agreement becomes binding upon him.  Purchaser agrees that as of the date of closing he/she will assume  all obligations appurtenant to the Unit under the Master Deed.

 

16.       DEFAULT.  If the Purchaser defaults in the performance of any of the payments or obligations required by this Agreement, and such default shall continue for ten (10) days after written notice of such default is mailed by the Developer to the Purchaser, then, at the option of Developer, all rights of the Purchaser under this Agreement shall terminate.

 

If the Purchaser's rights terminate prior to the time this Agreement becomes a binding Purchase Agreement, or if the Developer shall default in any manner, all sums paid by the Purchaser shall be refunded to him/her and neither party shall be obligated further.  If the Purchaser's rights are terminated after this Agreement becomes a binding Purchase Agreement, any amount paid by the Purchaser toward the purchase price not to exceed ten percent (10%) of the total cost of the Unit (plus 100% of any deposits for additions, extras and/or modifications as specified on Exhibit A) may be retained by the Developer as liquidated damages, or the Developer, at its option, may elect to pursue any legal or equitable remedy available to it under the laws of the State of Michigan.

 

Tender of deed or purchase money shall not be necessary where the other party has defaulted.  A failure to appear at the time and place stated above on notice to close the transaction shall be a default.  A failure to furnish to the Developer and/or mortgagee all requested credit information and to sign customary papers relating to the application and securing of a mortgage commitment as required by Paragraph 8 shall be a default.  Time is of the essence of this Agreement and the words "date hereof" mean the date of acceptance of this Agreement by the Developer.

 

17.       ASSIGNABILITY.  Purchaser shall not assign, set over or transfer this Agreement or any of Purchaser's rights or interests  under the Agreement without the prior written consent of the Developer, and at Developer's option any such purported assignment shall be void and of no effect.  Developer's refusal to consent to an assignment shall not entitle the Purchaser to terminate this Agreement or give rise to any claim for damages against the Developer.  The Developer may assign its rights under this Agreement and, if such assignment shall be for the purpose of securing a lender, Purchaser's rights under this Agreement shall, at the option of such lender, be subject and subordinate to the rights of the lender.

 

 

 

18.       INSPECTION.  PURCHASER ACKNOWLEDGES THAT HE HAS INSPECTED THE UNIT AND IS BUYING THE UNIT AND ALL OTHER PROPERTY COVERED BY THIS AGREEMENT IN ITS PRESENT CONDITION, “AS IS”, WITHOUT ANY WARRANTY OR REPRESENTATION, EXPRESS OR IMPLIED, BY THE DEVELOPER OR BY ANY AGENT OR BROKER OF THE DEVELOPER UNLESS EXPRESSLY STATED IN THIS DOCUMENT OR IN THE MASTER DEED OF THE PROJECT.

 

19.       RISK OF LOSS.  Until date of closing, all risk of loss from fire and the elements shall be borne by the Developer.  Thereafter, the Purchaser shall be responsible for all damage to, or loss of, the Unit.

 

20.       ENTIRE AGREEMENT.  This Agreement constitutes the entire Agreement between the parties.  NO REPRESENTATIONS, WARRANTIES, UNDERTAKINGS OR PROMISES, WHETHER ORAL, IMPLIED OR OTHERWISE, CAN BE MADE OR HAVE BEEN MADE BY EITHER THE DEVELOPER OR ITS AGENTS OR BROKERS, TO THE PURCHASER OR ANYONE ACTING ON BEHALF OF THE PURCHASER UNLESS EXPRESSLY STATED IN THIS AGREEMENT OR UNLESS MUTUALLY AGREED TO IN WRITING BY THE PARTIES. ALL AMENDMENTS, SUPPLEMENTS OR RIDERS TO THIS AGREEMENT, IF ANY, SHALL BE IN WRITING EXECUTED BY BOTH PARTIES AND ATTACHED TO THE AGREEMENT. PURCHASER SHALL NOT RECORD THIS AGREEMENT OR ANY MEMORANDUM OF AGREEMENT.

 

21.       ADVERTISING.  For the purpose of completing the sales promotion of the Project, the Developer, its agents, successors and assigns, are hereby given full right and authority to use and occupy the Office Building located on the Condominium Project without charge other than the payment of utilities furnished to such building, until the sale of the last Unit in the Project, together with such signs, transient parking and/or model Units as the Developer may desire, together with rights of ingress and egress for the Developer and its agents, successors and assigns, and any of their respective licensees or invitees.  The Developer shall restore the common elements to habitable status upon termination of use.

 

22.       NOTICES.  All notices and demands made under this Agreement shall be in writing and shall be deemed received on the day following the day on which the notice is deposited in the United States mail, first class or certified mail, return receipt requested, postage prepaid, and addressed to the Developer, or to the Purchaser or to his/her attorney, at the respective addresses contained in this Agreement, or such written notices and demands may be made by personal delivery to either party or to the party's attorney.

 

            23,       ARBITRATION.  At the exclusive option of the Purchaser, any claim which might be the subject of a civil action against the Developer which involves an amount less than $2,500.00, and arises out of or relates to this Purchase Agreement or the Unit or project to which this Agreement relates, shall be settled by binding arbitration conducted by the American Arbitration Association.  The arbitration shall be conducted in accordance with applicable law and the currently

 

applicable rules of the American Arbitration Association. Judgment upon the award rendered by arbitration may be entered in a circuit court of appropriate jurisdiction.

 

            24        DELAYS.  If the Developer shall fail to perform any of its obligations on the date

established for closing, or if the commitment furnished at closing shall disclose a defect in the Developer's title, the Developer shall have a period of thirty (30) days to perform any such obligation or to cure such defect.  If the Developer fails to perform or to clear its title within such period, Purchaser may elect to terminate this Agreement and all sums paid to date by Purchaser toward the

purchase price of the Unit shall be returned to the Purchaser and neither the Purchaser nor the Developer shall have any further obligation to the other.

 

25.       BROKERAGE.  Purchaser and Developer acknowledge that this Agreement was procured through the services of the Developer's sales representative, without the intervention of any other real estate broker or agent.  Purchaser shall indemnify the Developer against the claim of any other real estate broker or agent, including attorney fees incurred as a result of such claim.

 

26.       ENFORCEABILITY.  The contract arising from the execution of this Agreement shall be binding upon and specifically enforceable by the parties and their respective heirs, personal representatives and assigns.


EXHIBIT A

 

                                     GOSHORN LAKE COTTAGE CONDOMINIUMS

 

                                                         Purchaser's Change Request

 

 

Condominium Unit No.             

 

Address                                                          Purchaser                                                                    

 

The following is a list of additional items, changes and/or extra features not shown on the plans and specifications as standard equipment which are to be added to the condominium unit described above.

 

The charge for each of the following additional items, changes and/or extra features will be added to the purchase price.  If, after the Developer has purchased, constructed and/or installed the improvements listed below, this Purchase Agreement is terminated as a result of the default or withdrawal of the Purchaser or if the Purchaser fails to close, an amount equal to the value of the additional item(s) purchased, constructed or installed shall be paid to the Developer by the Escrow Agent out of the Purchaser's escrowed funds.  Such payment shall be in addition to the liquidated damage provisions described in Paragraph 16 of the Purchase Agreement.

 

It is further understood and agreed that in the event of the Purchaser's default, withdrawal or failure to close, the Developer reserves the right to restore the Purchaser's Unit to the condition contemplated under the original plans and specifications, and the amount of additional cost and restoration shall be established by the Developer's general contractor in the sole and absolute discretion of such general contractor, and such additional cost shall similarly be paid to the Developer by the Escrow Agent out of Purchaser's escrowed funds.

 

To the extent that the provisions of this Change Request are contradictory or inconsistent with the Purchase Agreement to which it is attached, the terms of this Change Request shall control. Any changes in the terms or conditions of this Agreement may only be made in writing and signed by all of the parties to the Agreement.

 

 

1.                                                                                                                      $                                 

2.                                                                                                                      $                                 

3.                                                                                                                      $                                 

4.                                                                                                                      $                                 

5.                                                                                                                      $                                 

6.                                                                                                                      $                                 


7.                                                                                                                      $                                 

::ODMA\PCDOCS\GRR\578848\1

 

 

 
8.                                                                                                                      $                                 

9.                                                                                                                      $                                 

10.                                                                                                                    $                                 

 

TOTAL                         $                                 

 

 

Dated:                                                                                                                                                 

                                                                                                                                             Purchaser

                                                                                   

                                                                                                                                                           

                                                                                                                                             Purchaser

 

                                                                                    RCNE, INC.

 

 

                                                                                    By                                                                   

                                                                                                                                            Developer