Real Estate Purchase and Sale Agreement 4-8-16

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Page 3 of 13 INITIALS: Seller:_________/Date:________ Purchaser:_________/Date:________ Seller:_________/Date:________ 4.6. Unless otherwise provided herein, all contingencies and conditions require notice in writing of acceptance, non-acceptance, or waiver within the time limits specified herein. In cases where a parties’ failure to provide effective notice of acceptance, non-acceptance or waiver causes this Agreement to be terminable by the other party, said termination shall be effective on five (5) business days’ notice by the terminating party to the other party of the intent to terminate. Nothing in this Paragraph shall expand or alter a parties’ right to terminate or the other party’s remedies for wrongful termination or failure to close. 5. Title. 5.1. Title Insurance. Title insurance shall be issued by AmeriTitle. Seller shall pay the cost of Standard Form Title Insurance. Within five (5) days of mutual acceptance of this Agreement, Seller shall arrange for the Closing Agent at Seller’s expense, to apply for a preliminary commitment (“Commitment”) for an ALTA form Owner’s Policy for title insurance (“Policy”) described in subparagraph (a) above with inflation protection, endorsements, if available at no additional charge, to be issued by the above title company. 5.2. Title Insurance Exceptions/Exclusions. Seller’s title to the Property is to be free and clear of all liens, encumbrances or defects except for those reservations, restrictions, covenants, easements, and rights of way apparent and/or of record which are acceptable to Purchaser. Rights reserved in federal patents or state deeds, building or use restrictions general to the district, existing easements not inconsistent with Purchaser’s intended use, and building or zoning regulations or provisions, and the water rights litigation presently pending under State of Washington, Department of Ecology v. James J. Acquavella, et al., Yakima County Superior Court Cause No. 77-2-01484-5, shall not be deemed encumbrances or defects. Encumbrances to be discharged by Seller may be paid out of purchase money at date of closing. If title cannot be made so insurable by Closing, and if Purchaser does not elect to waive any exceptions to the coverage which are not consistent with this subparagraph, this Agreement shall terminate and Purchaser’s earnest money shall be refunded, at Purchaser’s option. 5.3. Extended Title Insurance. Purchaser acknowledges that coverage afforded by Standard Form Policy of Title Insurance provides limited or no coverage for loss by reason of conflicts in boundary lines, shortage in area, encroachments or other matters which an accurate survey would disclose. More extensive coverage through an extended policy of title insurance may be available for an additional charge and subject to additional requirements imposed by the title company including a survey. If Purchaser requires or desires extended title insurance, Purchaser agrees to pay all costs in excess of those charged for the Standard Form Title Insurance, including, without limitation, increased premiums and survey costs. If a survey is required, Purchaser shall order survey within five (5) business days of receiving notice from the title company that a survey is required and the Purchaser shall pay the estimated cost of the survey prior to performance of any survey work or Purchaser can waive requirement for an extended policy and accept Standard Title Insurance. 6. Default: If either party defaults (that is fails to perform the acts required of him) in his contractual performance herein, the non-defaulting party may seek specific performance pursuant to the terms of this Agreement, damages or rescission. If the non-defaulting party seeking damages or rescission is Purchaser, the earnest money, upon demand, shall be refunded. If the non-defaulting party seeking damages or rescission is Seller, the earnest money, upon demand, shall be forfeited and paid to Seller less all charges provided for herein. In the event the Purchaser fails, without legal excuse, to complete the purchase of the Property, the earnest money deposit made by the Purchaser shall be forfeited to the Seller as the sole and exclusive remedy available to the Seller for such failure. Initials of: Seller:_____/_____ Purchaser:_____