Free New Jersey 118 PDF Template

513. MANNER OF PAYMENT:

54business days after the fully signed Contract has been delivered to both Buyer and the Seller).

55

56(B) ADDITIONAL DEPOSIT to be paid by Buyer to the party who will be responsible for holding the escrow who is identified below

58delivered to both the Buyer and the Seller).

64place the deposit monies in Court requesting the Court to resolve the dispute.

65

66(D) IF PERFORMANCE BY BUYER IS CONTINGENT UPON OBTAINING A MORTGAGE:

71and use best efforts to obtain it. Buyer shall supply all necessary information and fees required by the proposed lender and shall authorize

72 the lender to communicate with the real estate brokers(s) and involved attorney(s). Buyer shall obtain a written commitment from the

73lending institution to make a loan on the property under the following terms:

85provided, however, if Seller alleges in writing to Escrowee within said ten (10) calendar days of the commitment date or any extension of

86the commitment date, whichever is later, that the failure to obtain the mortgage commitment is the result of Buyer's bad faith, negligence,

87 intentional conduct or failure to diligently pursue the mortgage application, then Escrowee shall not return the deposit monies to Buyer

88without the written authorization of Seller.

89

90(E) BALANCE OF PURCHASE PRICE: The balance of the purchase price shall be paid by Buyer in cash, or by certified, cashier's

91check or trust account check.

92

93Payment of the balance of the purchase price by Buyer shall be made at the closing, which will take place on

95and Buyer may agree (“the Closing”).

96

974. SUFFICIENT ASSETS:

98 Buyer represents that Buyer has or will have as of the Closing, all necessary cash assets, together with the mortgage loan proceeds, to

99complete the Closing. Should Buyer not have sufficient cash assets at the Closing, Buyer will be in breach of this Contract and Seller shall

100be entitled to any remedies as provided by law.

101

1025. ACCURATE DISCLOSURE OF SELLING PRICE:

103Buyer and Seller certify that this Contract accurately reflects the gross sale price as indicated in Section 2 of this Contract. Buyer and

104Seller understand and agree that this information shall be disclosed to the Internal Revenue Service and other governmental agencies as

105required by law.

106

1076. ITEMS INCLUDED IN SALE:

110apparatus and sump pumps, if any, except where owned by tenants, are included in this sale. All of the appliances shall be in working

111order as of the Closing. Seller does not guarantee the condition of the appliances after the Deed and affidavit of title have been delivered

112 to Buyer at the Closing. The following items are also specifically included (If reference is made to the MLS Sheet and/or any other

113document, then the document(s) referenced should be attached.):

1187. ITEMS EXCLUDED FROM SALE: (If reference is made to the MLS Sheet and/or any other document, then the document(s)

119referenced should be attached.):

1248. DATES AND TIMES FOR PERFORMANCE:

125Seller and Buyer agree that all dates and times included in this Contract are of the essence. This means that Seller and Buyer must satisfy

126 the terms of this Contract within the time limits that are set in this Contract or will be in default, except as otherwise provided in this

127Contract or required by applicable law, including but not limited to if the Closing has to be delayed either because a lender does not timely

128provide documents through no fault of Buyer or Seller or for three (3) business days because of the change of terms as required by the

129Consumer Financial Protection Bureau.

130

131(A) Additional documents from lenders or other property owners:

132If a lender or other property owner requires that any addendum or other document be signed for a property it owns in connection with this

133Contract, “final execution date,” “acknowledgement date,” or similar language that sets the time period for the completion of any conditions

134or contingencies, including but not limited to inspections and financing, shall mean that the time will begin to run after the attorney­review

135period is completed or, if this Contract is timely disapproved by an attorney as provided in the Attorney­Review Clause Section of this

136Contract, then from the date the parties agree to the terms of this Contract.

137

1389. CERTIFICATE OF OCCUPANCY AND ZONING COMPLIANCE:

139Seller makes no representations concerning existing zoning ordinances, except that Seller's use of the Property is not presently in violation

140of any zoning ordinances.

141

142Some municipalities may require a Certificate of Occupancy or Housing Code Letter to be issued. If any is required for this Property,

143Seller shall obtain it at Seller's expense and provide to Buyer prior to Closing and shall be responsible to make and pay for any repairs

145purchase price) to Seller, then Seller may terminate this Contract and refund to Buyer all deposit monies plus Buyer's reasonable expenses,

146if any, in connection with this transaction unless Buyer elects to make repairs in excess of said amount at Buyer's expense, in which event

147Seller shall not have the right to terminate this Contract. In addition, Seller shall comply with all New Jersey laws, and local ordinances,

148including but not limited to smoke detectors, carbon monoxide detectors, fire extinguishers and indoor sprinklers, the cost of which shall

149be paid by Seller and not be considered as a repair cost.

152explained in this Section.)

156unconfirmed assessments that have been or may be imposed by the municipality for improvements that have been completed as of the

157Closing are to be paid in full by Seller or credited to Buyer at the Closing. A confirmed assessment is a lien against the Property. An

158unconfirmed assessment is a potential lien that, when approved by the appropriate governmental entity, will become a legal claim against

159the Property.

160

16111. QUALITY AND INSURABILITY OF TITLE:

162At the Closing, Seller shall deliver a duly executed Bargain and Sale Deed with Covenant as to Grantor's Acts or other Deed satisfactory

163to Buyer. Title to the Property will be free from all claims or rights of others, except as described in this Section and Section 12, of this

164Contract. The Deed shall contain the full legal description of the Property.

171residential purposes. A violation of any restriction shall not be a reason for Buyer refusing to complete the Closing as long as the title

172company insures Buyer against loss at regular rates. The sale also will be made subject to applicable zoning ordinances, provided that

173the ordinances do not render title unmarketable.

174

185price, Buyer shall have the option to either void this Contract, in which case the monies paid by Buyer toward the purchase price shall

186be returned to Buyer, together with the actual costs of the title search and the survey and the mortgage application fees in preparing for

187the Closing without further liability to Seller, or to proceed with the Closing without any reduction of the purchase price.

188

18912. POSSESSION, OCCUPANCY AND TENANCIES:

190(A) Possession and Occupancy.

191Possession and occupancy will be given to Buyer at the Closing. Buyer shall be entitled to possession of the Property, and any rents or

192profits from the Property, immediately upon the delivery of the Deed and the Closing. Seller shall pay off any person with a claim or right

193affecting the Property from the proceeds of this sale at or before the Closing.

197existing Municipal, County, State or Federal rules, regulations or laws. Seller agrees to transfer all security deposits to Buyer at the Closing

198and to provide to Brokers and Buyer a copy of all leases concerning the tenancies, if any, along with this Contract when it is signed by

199Seller. Seller represents that such leases can be assigned and that Seller will assign said leases, and Buyer agrees to accept title subject to

200these leases.

210(A) Document Acknowledgement.

211Buyer acknowledges receipt of the EPA pamphlet entitled “Protect Your Family From Lead In Your Home.” Moreover, a copy of a

212document entitled “Disclosure of Information and Acknowledgement Lead­Based Paint and Lead­Based Paint Hazards” has been fully

213completed and signed by Buyer, Seller and Broker(s) and is appended to” and made a part of this Contract.

214

215(B) Lead Warning Statement.

216Every purchaser of any interest in residential real property on which a residential dwelling was built prior to 1978 is notified that such

217property may present exposure to lead from lead­based paint that may place young children at risk of developing lead poisoning. Lead

218 poisoning in young children may produce permanent neurological damage, including learning disabilities, reduced intelligence quotient,

219behavioral problems, and impaired memory. Lead poisoning also poses a particular risk to pregnant women. The seller of any interest

222possible lead­based paint hazards is recommended prior to purchase.

223

224(C) Inspection.

225 The law requires that, unless Buyer and Seller agree to a longer or shorter period, Seller must allow Buyer a ten (10) day period

226within which to complete an inspection and/or risk assessment of the Property as set forth in the next paragraph. Buyer, however, has the

227right to waive this requirement in its entirety.

228

229 This Contract is contingent upon an inspection and/or risk assessment (the “Inspection”) of the Property by a certified inspector/risk

230assessor for the presence of lead­based paint and/or lead­based paint hazards. The Inspection shall be ordered and obtained by Buyer at

231Buyer's expense within ten (10) calendar days after the attorney­review period is completed or, if this Contract is timely disapproved by an

232 attorney as provided in the Attorney­Review Clause Section of this Contract, then within ten (10) days after the parties agree to

233the terms in this Contract (“Completion Date”). If the Inspection indicates that no lead­based paint or lead­based paint hazard is present

234at the Property, this contingency clause shall be deemed null and void. If the Inspection indicates that lead­based paint or lead­based paint

235hazard is present at the Property, this contingency clause will terminate at the time set forth above unless, within five (5) business days from

236the Completion Date, Buyer delivers a copy of the inspection and/or risk assessment report to Seller and Brokers and (1) advises Seller

237and Brokers, in writing that Buyer is voiding this Contract; or (2) delivers to Seller and Brokers a written amendment (the “Amendment”)

238 to this Contract listing the specific existing deficiencies and corrections required by Buyer. The Amendment shall provide that Seller

239agrees to (a) correct the deficiencies; and (b) furnish Buyer with a certification from a certified inspector/risk assessor that the deficiencies

241to sign and return it to Buyer or send a written counter­proposal to Buyer. If Seller does not sign and return the Amendment or fails to

243blank, then 3) business days after receipt of the counter­proposal to accept it. If Buyer fails to accept the counter­proposal within the time

244limit provided, this Contract shall be null and void.

245

24614. POINT-OF-ENTRY TREATMENT (“POET”) SYSTEMS: Applicable Not Applicable

247A point­of­entry treatment (“POET”) system is a type of water treatment system used to remove contaminants from the water entering a

248structure from a potable well, usually through a filtration process. Seller represents that a POET system has been installed to an existing

249well on the Property and the POET system was installed and/or maintained using funds received from the New Jersey Spill Compensation

250Fund Claims Program, N.J.S.A. 58:10­23.11, et seq. The Buyer understands that Buyer will not be eligible to receive any such funds for the

251continued maintenance of the POET system. Pursuant to N.J.A.C. 7:1J­2.5(c), Seller agrees to notify the Department of Environmental

252Protection within thirty (30) calendar days of executing this Contract that the Property is to be sold.

253

254 15. CESSPOOL REQUIREMENTS: Applicable Not Applicable

255 (This section is applicable if the Property has a cesspool, except in certain limited circumstances set forth in N.J.A.C.

2567:9A-3.16.) Pursuant to New Jersey's Standards for Individual Subsurface Sewage Disposal Systems, N.J.A.C. 7:9A (the “Standards”), if

257this Contract is for the sale of real property at which any cesspool, privy, outhouse, latrine or pit toilet (collectively “Cesspool”) is located,

258 the Cesspool must be abandoned and replaced with an individual subsurface sewage disposal system at or before the time of the real

259property transfer, except in limited circumstances.

262Property. [If there are one or more Cesspools, then also check EITHER Box 1 or 2 below.]

265located at or on the Property and replace such Cesspools with an individual subsurface sewage disposal system (“System”) meeting all

266 the requirements of the Standards. At or prior to the Closing, Seller shall deliver to Buyer a certificate of compliance (“Certificate of

267Compliance”) issued by the administrative authority (“Administrative Authority”) (as those terms are defined in N.J.A.C. 7:9A­2.1) with

271Administrative Authority ( “Alternate System”), and Buyer shall then have the right to void this Contract by notifying Seller in writing

274to Buyer such Certificate of Compliance or other evidence of approval of the Alternate System as may be issued by the Administrative

275Authority. The delivery of said Certificate of Compliance or other evidence of approval shall be a condition precedent to the Closing; or

278located at or on the Property and replace such Cesspools with a System meeting all the requirements of the Standards or an Alternate

279System. Buyer shall indemnify and hold Seller harmless for any and all costs, damages, claims, fines, penalties and assessments (including

280but not limited to reasonable attorneys' and experts' fees) arising from Buyer's violation of this paragraph. This paragraph shall survive

281the Closing.

282

283(B) If prior to the Closing, either Buyer or Seller becomes aware of any Cesspool at or on the Property that was not disclosed by Seller

284at or prior to execution of this Contract, the party with knowledge of the newly identified Cesspool shall promptly, but in no event later

285than three (3) business days after receipt of such knowledge, advise the other party of the newly identified Cesspool in writing. In such

286event, the parties in good faith shall agree, no later than seven (7) business days after sending or receiving the written notice of the newly

287identified Cesspool, or the day preceding the scheduled Closing, whichever is sooner, to proceed pursuant to subsection (A) 1 or 2 above

288or such other agreement as satisfies the Standards, or either party may terminate this Contract.

289

29016. INSPECTION CONTINGENCY CLAUSE:

291(A) Responsibilities of Home Ownership.

292Buyer and Seller acknowledge and agree that, because the purchase of a home is one of the most significant investments a person can

293 make in a lifetime, all aspects of this transaction require considerable analysis and investigation by Buyer before closing title to the

294Property. While Brokers and salespersons who are involved in this transaction are trained as licensees under the New Jersey Licensing Act

295they readily acknowledge that they have had no special training or experience with respect to the complexities pertaining to the multitude

296 of structural, topographical and environmental components of this Property. For example, and not by way of limitation, Brokers and

297salespersons have no special training, knowledge or experience with regard to discovering and/or evaluating physical defects, including

298 structural defects, roof, basement, mechanical equipment, such as heating, air conditioning, and electrical systems, sewage, plumbing,

299exterior drainage, termite, and other types of insect infestation or damage caused by such infestation. Moreover, Brokers and salespersons

300similarly have no special training, knowledge or experience with regard to evaluation of possible environmental conditions which might

301 affect the Property pertaining to the dwelling, such as the existence of radon gas, formaldehyde gas, airborne asbestos fibers, toxic

302chemicals, underground storage tanks, lead, mold or other pollutants in the soil, air or water.

303

304(B) Radon Testing, Reports and Mitigation.

307radon/pubs/citguide.html and www.nj.gov/dep/rpp/radon or call the NJ Radon Hot Line at 800-648-0394 or 609-984- 5425.)

308

309If the Property has been tested for radon prior to the date of this Contract, Seller agrees to provide to Buyer, at the time of the execution

310of this Contract, a copy of the result of the radon test(s) and evidence of any subsequent radon mitigation or treatment of the Property.

311In any event, Buyer shall have the right to conduct a radon inspection/test as provided and subject to the conditions set forth in paragraph

312(D) below. If any test results furnished or obtained by Buyer indicate a concentration level of 4 picocuries per liter (4.0 pCi/L) or more in

313the subject dwelling, Buyer shall then have the right to void this Contract by notifying Seller in writing within seven (7) business days of the

314receipt of any such report. For the purposes of this Section 16, Seller and Buyer agree that, in the event a radon gas concentration level

315in the subject dwelling is determined to be less than 4 picocuries per liter (4.0 pCi/L) without any remediation, such level of radon gas

316concentration shall be deemed to be an acceptable level (“Acceptable Level”) for the purposes of this Contract. Under those circumstances,

317Seller shall be under no obligation to remediate, and this contingency clause as it relates to radon shall be deemed fully satisfied.

318

319If Buyer's qualified inspector reports that the radon gas concentration level in the subject dwelling is four picocuries per liter (4.0 pCi/L)

320 or more, Seller shall have a seven (7) business day period after receipt of such report to notify Buyer in writing that Seller agrees to

321remediate the gas concentration to an Acceptable Level (unless Buyer has voided this Contract as provided in the preceding paragraph).

322Upon such remediation, the contingency in this Contract which relates to radon shall be deemed fully satisfied. If Seller fails to notify

323Buyer of Seller's agreement to so remediate, such failure to so notify shall be deemed to be a refusal by Seller to remediate the radon level

324to an Acceptable Level, and Buyer shall then have the right to void this Contract by notifying Seller in writing within seven (7) calendar

325 days thereafter. If Buyer fails to void this Contract within the seven (7) day period, Buyer shall have waived Buyer's right to cancel

326this Contract and this Contract shall remain in full force and effect, and Seller shall be under no obligation to remediate the radon gas

327concentration. If Seller agrees to remediate the radon to an Acceptable Level, such remediation and associated testing shall be completed

328by Seller prior to the Closing.

329

330(C) Infestation and/or Damage By Wood Boring Insects.

331 Buyer, shall have the right to have the Property inspected by a licensed exterminating company of Buyer's choice, for the purpose of

332determining if the Property is free from infestation and damage from termites or other wood destroying insects. If Buyer chooses to make

333this inspection, Buyer shall pay for the inspection unless Buyer's lender prohibits Buyer from paying, in which case Seller shall pay. The

335days after the attorney­review period is completed or, if this Contract is timely disapproved by an attorney as provided in the Attorney­

337Contract. This report shall state the nature and extent of any infestation and/or damage and the full cost of treatment for any infestation.

338Seller agrees to treat any infestation and cure any damage at Seller's expense prior to Closing, provided however, if the cost to cure exceeds

340business days after the report has been delivered to Seller and Brokers. If Buyer and Seller are unable to agree upon who will pay for the

341cost to cure and neither party timely voids this Contract, then Buyer will be deemed to have waived its right to terminate this Contract

342and will bear the cost to cure that is over 1% of the purchase price, with Seller bearing the cost that is under 1% of the purchase price.

343

344(D) Buyer's Right to Inspections.

345Buyer acknowledges that the Property is being sold in an “as is” condition and that this Contract is entered into based upon the knowledge

346of Buyer as to the value of the land and whatever buildings are upon the Property, and not on any representation made by Seller, Brokers

347or their agents as to character or quality of the Property. Therefore, Buyer, at Buyer's sole cost and expense, is granted the right to have

348the dwelling and all other aspects of the Property, inspected and evaluated by “qualified inspectors” (as the term is defined in subsection

349 G below) for the purpose of determining the existence of any physical defects or environmental conditions such as outlined above. If

350Buyer chooses to make inspections referred to in this paragraph, such inspections must be completed, and written reports including a list

352review period is completed or, if this Contract is timely disapproved by an attorney as provided in the Attorney­Review Clause Section

355this contingency clause shall be deemed waived by Buyer, and the Property shall be deemed acceptable by Buyer. The time period for

356furnishing the inspection reports is referred to as the “Inspection Time Period.” Seller shall have all utilities in service for inspections.

357

358(E) Responsibility to Cure.

359If any physical defects or environmental conditions (other than radon or woodboring insects) are reported by the qualified inspectors to

360Seller within the Inspection Time Period, Seller shall then have seven (7) business days after the receipt of such reports to notify Buyer

361in writing that Seller shall correct or cure any of the defects set forth in such reports. If Seller fails to notify Buyer of Seller's agreement

362to so cure and correct, such failure to so notify shall be deemed to be a refusal by Seller to cure or correct such defects. If Seller fails to

363 agree to cure or correct such defects within the seven (7) business day period, or if the environmental condition at the Property (other

364than radon) is incurable and is of such significance as to unreasonably endanger the health of Buyer, Buyer shall then have the right to

365void this Contract by notifying Seller in writing within seven (7) business days thereafter. If Buyer fails to void this Contract within the

366seven (7) business day period, Buyer shall have waived Buyer's right to cancel this Contract and this Contract shall remain in full force,

367and Seller shall be under no obligation to correct or cure any of the defects set forth in the inspections. If Seller agrees to correct or cure

368such defects, all such repair work shall be completed by Seller prior to the closing of title. Radon at the Property shall be governed by

369the provisions of Paragraph (B), above.

370

371(F) Flood Hazard Area (if applicable).

372The federal and state governments have designated certain areas as flood areas. If the Property is located in a flood area, the use of the

373Property may be limited. If Buyer's inquiry reveals that the Property is in a flood area, Buyer may cancel this Contract within ten (10)

374calendar days after the attorney­review period is completed or, if this Contract is timely disapproved by an attorney as provided in the

375Attorney­Review Clause Section of this Contract, then within ten (10) calendar days after the parties agree to the terms of this Contract.

376If the mortgage lender requires flood insurance, then Buyer shall be responsible for obtaining such insurance on the Property. For a flood

377policy to be in effect immediately, there must be a loan closing. There is a (30) calendar day wait for flood policies to be in effect for

378cash transactions. Therefore, cash buyers are advised to make application and make advance payment for a flood policy at least thirty

379(30) calendar days in advance of closing if they want coverage to be in effect upon transfer of title.

385flood insurance for the Property. As a result, Buyer should not rely on the premiums paid for flood insurance on this Property previously

386as an indication of the premiums that will apply after Buyer completes the purchase. In considering Buyer's purchase of this Property,

387Buyer is therefore urged to consult with one or more carriers of flood insurance for a better understanding of flood insurance coverage,

388the premiums that are likely to be required to purchase such insurance and any available information about how those premiums may

389increase in the future.

390

391(G) Qualifications of Inspectors.

392Where the term “qualified inspectors” is used in this Contract, it is intended to refer to persons or businesses that are licensed or certified

393by the State of New Jersey for such purpose.

394

39517. MEGAN'S LAW STATEMENT:

396Under New Jersey law, the county prosecutor determines whether and how to provide notice of the presence of convicted sex offenders

397in an area. In their professional capacity, real estate licensees are not entitled to notification by the county prosecutor under Megan's Law

398and are unable to obtain such information for you. Upon closing, the county prosecutor may be contacted for such further information

399as may be disclosable to you.

400

40118. MEGAN'S LAW REGISTRY:

402Buyer is notified that New Jersey law establishes an Internet Registry of Sex Offenders that may be accessed at www.njsp.org. Neither

403Seller or any real estate broker or salesperson make any representation as to the accuracy of the registry.

404

40519. NOTIFICATION REGARDING OFF-SITE CONDITIONS: (Applicable to all resale transactions.)

406Pursuant to the New Residential Construction Off­Site Conditions Disclosure Act, N.J.S.A. 46:3C­1, et. seq, the clerks of municipalities

409to become familiar with any off­site conditions which may affect the value of the property. In cases where a property is located near the

410border of a municipality, buyers may wish to also examine the list maintained by the neighboring municipality.

411

41220 AIR SAFETY AND ZONING NOTICE:

413Any person who sells or transfers a property that is in an airport safety zone as set forth in the New Jersey Air Safety and Zoning Act of

4141983, N.J.S.A. 6:1­80, et seq., and appearing on a municipal map used for tax purposes as well as Seller's agent, shall provide notice to

415a prospective buyer that the property is located in an airport safety zone prior to the signing of the contract of sale. The Air Safety and

47822. NOTICE TO BUYER CONCERNING INSURANCE:

479Buyer should obtain appropriate casualty and liability insurance for the Property. Buyer's mortgage lender will require that such insurance

480be in place at Closing. Occasionally, there are issues and delays in obtaining insurance. Be advised that a “binder” is only a temporary

481commitment to provide insurance coverage and is not an insurance policy. Buyer is therefore urged to contact a licensed insurance agent

482or broker to assist Buyer in satisfying Buyer's insurance requirements.

483

48423. MAINTENANCE AND CONDITION OF PROPERTY:

485Seller agrees to maintain the grounds, buildings and improvements, in good condition, subject to ordinary wear and tear. The premises

486shall be in “broom clean” condition and free of debris as of the Closing. Seller represents that all electrical, plumbing, heating and air

487conditioning systems (if applicable), together with all fixtures included within the terms of the Contract now work and shall be in proper

488working order at the Closing. Seller further states, that to the best of Seller's knowledge, there are currently no leaks or seepage in the

489roof, walls or basement. Seller does not guarantee the continuing condition of the premises as set forth in this Section after the Closing.

490

49124. RISK OF LOSS:

492 The risk of loss or damage to the Property by fire or otherwise, except ordinary wear and tear, is the responsibility of Seller until

493the Closing.

49525. INITIAL AND FINAL WALK-THROUGHS:

498time before the Closing. Seller shall have all utilities in service for the inspections.

499

50026. ADJUSTMENTS AT CLOSING:

501Seller shall pay for the preparation of the Deed, realty transfer fee, lien discharge fees, if any, and one­half of the title company charges

502 for disbursements and attendance allowed by the Commissioner of Insurance; but all searches, title insurance premium and other

503conveyancing expenses are to be paid for by Buyer.

504

505Seller and Buyer shall make prorated adjustments at Closing for items which have been paid by Seller or are due from Seller, such as real

506estate taxes, water and sewer charges that could be claims against the Property, rental and security deposits, association and condominium

507dues, and fuel in Seller's tank. Adjustments of fuel shall be based upon physical inventory and pricing by Seller's supplier. Such determi­

508nation shall be conclusive.

509

510If Buyer is assuming Seller's mortgage loan, Buyer shall credit Seller for all monies, such as real estate taxes and insurance premiums paid

511in advance or on deposit with Seller's mortgage lender. Buyer shall receive a credit for monies, which Seller owes to Seller's Mortgage

512lender, such as current interest or a deficit in the mortgage escrow account.

513

514If the Property is used or enjoyed by not more than four families and the purchase price exceeds $1,000,000, then pursuant to N.J.S.A.

51546:15­7.2, Buyer will be solely responsible for payment of the fee due for the transfer of the Property, which is the so­called “Mansion

516“Tax, in the amount of one (1%) percent of the purchase price.

517

518 Unless an exemption applies, non­resident individuals, estates, or trusts that sell or transfer real property in New Jersey are required to

519make an estimated gross income tax payment to the State of New Jersey on the gain from a transfer/sale of real property (the so­called

520“Exit Tax,”) as a condition of the recording of the deed.

521

522 If Seller is a foreign person (an individual, corporation or entity that is a non­US resident) under the Foreign Investment in Real 523 Property Tax Act of 1980, as amended (“FIRPTA”), then with a few exceptions, a portion of the proceeds of sale may need to be

524withheld from Seller and paid to the Internal Revenue Service as an advance payment against Seller's tax liability.

525

526Seller agrees that, if applicable, Seller will (a) be solely responsible for payment of any state or federal income tax withholding amount(s)

529connection with the amount(s) withheld.

530

531There shall be no adjustment on any Homestead Rebate due or to become due.

532

53327. FAILURE OF BUYER OR SELLER TO CLOSE:

537damages. If Buyer or Seller breach this Contract, the breaching party will nevertheless be liable to Brokers for the commissions in the