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HomeMy WebLinkAbout08-20-12 IN RE: ESTATE OF ANNA C. ZIEGLER, DECEASED BOROUGH OF CARLISLE, CUMBERLAND COUNTY, PENNSYLVANIA IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA ORPHANS' COURT N0.21-11-0507 W~ _ PETITION BY CO-EXECUTOR ~c,r FOR LEAVE TO PURCHASE REAL ESTATE °~- no ~' . IN ACCORDANCE WITH 20 PA. C S A 3356 _ ~, $ ~' The petition of M&T Bank, Co-Executor of the above-captioned estate, respectfully states that: 2. 3. 4. 5. 6. 7. 8. 9. 10 ,.. x rs c~ rv O N 0 .~ Anna C. Ziegler ("Decedent") departed this life on March 16, 2011, having first left a Last Will and Testament dated February 15, 2000, and Codicil to her Last Will and Testament dated February 16, 2001. The Last Will and Testament and Codicil were submitted to probate, Cumberland County Register's Office, on Apri121, 2011, to No. 21-11-0507. Pursuant to the Last Will and Testament and Codicil, the Register appointed M & T Bank and Jack W. Ziegler Co-Executors. At the time of her death, Decedent was the owner of the real estate known as 431 West North Street, Borough of Carlisle, Cumberland County, Pennsylvania, free and clear of any and all encumbrances. Attached hereto, and marked Exhibit "A", is the relevant portions of an appraisal performed by Larry E. Foote, Diversified Appraisal Services, for 431 West North Street, Carlisle, Pennsylvania, reporting a fair market value of the real estate, as of the date of death, of one hundred fifty thousand ($150,000.00) dollars. Co-Executor Jack W. Ziegler and his spouse, Darlene K. Ziegler, executed the Agreement of Sale dated October 5, 2011 with the estate to purchase the property for one hundred fifty thousand ($150,000.00) dollars. A copy of the Agreement of Sale is attached hereto and marked Exhibit "B". On or about August 15, 2012, the parties executed an Addendum to the Agreement of Sale, a copy of which is attached hereto and marked Exhibit "C". Co-Executor Jack W. Ziegler and his spouse, Darlene K. Ziegler, desire to purchase the real estate in their individual capacities. Adequate reserves have been made for specific bequests provided in the Last Will and Testament of one thousand ($1,000.00) dollars to each of the Decedent's grandchildren and two thousand ($2,000.00) dollars to the Decedent's friend, Betty Smith. Pursuant to paragraph FOURTH of the Last Will and Testament, all the rest, residue and remainder of the estate passes, in equal shares, unto the Decedent's children, Carole L. Rish, Jack W. Ziegler and David F. Ziegler. r--r-t c ~ to .+ :.. J ~_ ~v ; r ~ ~~ J -- , ~~ ~ 11. Attached hereto and marked Exhibit "D" are the Consents of the additional residuary beneficiaries, Carole L. Rish and David F. Ziegler, consenting to the sale of 431 West North Street for one hundred fifty thousand ($150,000.00) dollars to Jack W. Ziegler, Co- Executor and his spouse, Darlene K. Ziegler. 12. The real estate is currently unoccupied and there are no rental payments. WHEREFORE, Petitioner requests that Your Honorable Court issue a final decree granting Jack W. Ziegler, Co-Executor, to purchase the property for one hundred fifty thousand ($150,000.00) dollars and direct the Co-Fiduciary, M&T Bank, to execute and deliver a deed to the real estate to the proposed purchaser. submitted, Ko~Sert'C'Saidis, Esquire I.D. #21458 Saidis, Sullivan & Rogers 26 West High Street Carlisle, PA 17013 Phone (717) 243-6222 Fax (717) 243-6486 rsaidis ,ssr-attorneys com VERIFICATION I verify that the statements made in the foregoing instrument are true and correct. I understand that false statements herein are made subject to the penalties of 18 Pa.C.S. § 4904, relating to unsworn falsification to authorities. M&T Bank DATED: ~`~ t to/I ~. `~'~ ~~ Ryan M. Leppo, CTFA ~~~J Assistant Vice President Wealth Advisory Services COMMONWEAL~Ti OF PENNSYLVANb1-~ Notarial Seal Karin L Wetzel, Notary PubMc Paxtang Boro, Daupldn County My Cwrm~slon Expkes OCG 3, 2015 ., APPRAISAL REPORT 43i WEST NORTH STREET CARLISLE, PENNSYLVANIA .PREPARED FOR THE .ESTATE OF ANNA C. ZIEGLER BY LARRY E. FOOTE DIVERSIFIED APPRAISAL SERVICES 35 EAST HIGH STREET, SUITE l0I CARLISLE, PENNSYLVANiA 17013-3052 (717) 249-2758 Exhibit "A" SUMMARY OF IMPORTANT FACTS AND CONCLUSIONS LOCATION: 431 West North Street Carlisle, Pennsylvania TAX PARCEL NUMBER: OS-20-1796-039 IMPROVEMENTS: Two-story detached single-family dwelling. PROPERTY RIGHTS: Fee simple interest. OWNERSHIP HISTORY: The subject property is owned by Anna C. Ziegler. The properly last transferred on February 6, 1963 for a reported consideration of $1.00 and ownership conveyed on deed reference 20-V-706: SCOPE OF THE ASSIGNMENT: The scope of the assignment included an analysis of the subject's area, an inspection of the subject property, an estimation of the property's highest and best use, consideration of all three approaches to value, and the application of those relevant to the valuation of the subject. OBJECTIVE: To estimate the market value of the subject property as unencumbered. EFFECTIVE DATE: March 16, 2011. .HIGHEST AND BEST USE: Continued use as asingle-family residence. COST APPROACH: N.A. SALES APPROACH: $150,000 INCOME APPROACH: N.A. FINAL VALUE CONCLUSION: $150,000 2 THE VALUATION PROCESS The valuation process is defined in The Appraisal of Real Estate as published by .the Appraisal Institute, as "a systematic set of procedures an appraiser follows to provide answers to a client's questions about real property value." It consists of a series of steps that are appropriate to a specific and .particular appraisal assignment that begins with a client engaging a real estate appraiser to develop an opinion of value for a specific property as of a given effective date and ends when the appraiser communicates and reports the final conclusions and opinions to the client. Definition of the Appraisal Problem: - The first step in the appraisal .process includes the presentation of the, following: 1. Identification of the client, the intended use, and the intended users of the appraisal report. 2. The purpose of the appraisal, including a definition of the value being reported. 3. Determination of the effective date of the appraisal report. 4. Extraordinary assumptions that are applicable to the appraisal assignment. 5. Hypothetical conditions that are applicable to the appraisal assignment. Scope of Work: Scope of work is defined in the Uniform Standards of Professional Practice as being "the type and extent of research and analyses in an assignment " This includes the degree and extent of research and the data that is deemed as necessary to develop a credible opinion of value :for the property being appraised. Data Collection and Analysis: The appraiser must gather and analyze market area data, subject property data, and comparable property data that is relative and relevant to the appraisal assignment. Development and Application of Traditional Approaches. to Value: The appraiser must consider which of the three traditional approaches to value are applicable, relevant, and pecessary for developing a credible opinion of value for the subject property. These three traditional approaches to value include the Cost Approach, Sales Comparison Approach, and Income Capitalization Approach. When two or more of these approaches to value are developed, the appraiser must determine the amount of emphasis and consideration to be given to each of those approaches to value, since one or more may have greater significance in the appraisal of a specific property: Reconciliation of Value Indications and Final Opinion of Value: The final step in the valuation process is the reconciliation of the value indications developed by the appraiser. Reconciliation is the analysis of alternative conclusions to arrive at a final value estimate. Reconciliation is required because different value indications result from the use of multiple approaches to value and within the application of a single approach. The f nal value estimate is not derived simply by applying technical and quantitative 3 procedures, rather, it involves the exercise of judgment, and the value conclusion reached must be consistent with market thinking. 4 APPRAISAL CERTIFICATION I hereby certify that upon application for valuation by: THE ESTATE OF ANNA C. ZIEGLER the undersigned personally inspected the following described property: All that certain piece or parcel of land, with the improvements thereon erected, situate in the Borough of Carlisle, Cumberland County, Pennsylvania, bounded and described as follows: Beginning at a point on the Northern line of West North Street, being the Southwest corner of lot of ground of Eva M. Ostot; thence North along the Western line of lot of said Eva M. Otstot 120.42 feet to a point on a 20 foot wide alley; thence. West along the .Southern line of said alley 50 feet to a point 5 feet East of-the Western Line of Lot No. 9 in the Revised Plan of Lots recorded in Cumberland County Plan Book No: 3 at Page 1; thence South on a. Line parallel to the Western line of the Otstot property 120.42 feet to the Northern Line of West North Street; thence East along said Northern line of West North Street 50 feet to the place of beginning. To the best of my knowledge and belief the statements contained in this report are true and correct, and that neither the employment to make this appraisal nor the. compensation is contingent upon the value .reported, and that in my opinion the Market Value as of March 16, .2011 is: ONE HUNDRED FIFTY THOUSAND DOLLARS $150,000 The property was appraised as a whole, subject to the contingent and limiting conditions outlined herein. ~'"~ ~ E. Foote . Pa. Certified General Appraiser GA-000014-L 5 STANDARD AGREEMENT FOR THE SALE OF REAL ESTATE AsR ^ma ionn ~ aavuuucuuw m~u appro~a tor, ouc nog ~esricrw co use oy, use memoClS or me rennsyroama nssociazion of K~AI.,"1'ORS~ (PAR). Jack W. Ziegler 1132 Centerville Road, Newville, PA 17241 Darlene Ziegler 1132 Centerville Road, Newville, PA 17241 Manufacturers & Traders Trust Co. Jack W. Ziegler, Co-Executors, .Estate of Anna C. Ziegler PROPERTY PROPERTY ADDRESS 431 West North Street ZIP 17013 in the municipality of Carlisle Borough ,County of Cumberland in the School District of Carlisle , in the Commonwealth of Pennsylvania Identification (e.g., Tax ID #; Parcel #; Lot, Block; Deed Book, Page, Recording Date): Tax Parcel No. 05-20-1796-039 BUYER'S RELATIONSHIP WITH PA LICENSED BROKER ® No Business Relationshi Bu er is not re resented b a broker Broker (Company) All reference to Buyer's Broker shall Licensee(s) (Name) mean Buyer's Attorney Company Address Direct Phone(s) Cell Phone(s) Company Phone Fax Company Fax Email Broker is: Licensee(s) is: ^ Buyer Agent (Broker represents Buyer only) ^ Buyer Agent with Designated Agency ^ Dual Agent (See Dual and/or Designated Agent box below) ^ Buyer Agent without Designated Agency ^ Dual Agent (See Dual and/or Designated Agent box below) ^ Transaction Licensee (Broker and Licensee(s) provide real estate services but do not represent Buyer) SELLER'S RELATIONSHIP WITH PA LICENSED BROKER ® No Business Relationship (Seller is not represented by a broker) (Broker (Company) all reference to Seller's Broker Licensee(s) (Name) shall mean Seller's Attornev Company Address Company Phone Comnanv Fax Broker is: ^ Seller Agent (Broker represents S eller only) ^ Dual Agent (See Dual andlor Designated Agent box below) ^ Transaction Licensee (Broker and Licensee(s) Direct Phone(s) Cell Phone(s) Fax Email Licensee(s) is: ^ Seller Agent with Designated Agency ^ Seller Agent without Designated Agency ^ Dual Agent (See Dual and/or Designated Agent box below) side real estate services but donot represent Seller) DUAL AND/UK DESIGNATED AGENCY Broker is a Dua] Agent when a Broker represents both Buyer and Seller in the same transaction. A Licensee is a Dual Agent when a Licensee presents Buyer and Seller in the same transaction. All of Broker's licensees are also Dual Agents UNLESS there are separate Designated Agents -Buyer and Seller. If the same Licensee is designated for Buyer and Seller, the Licensee is a Dual Agent. PREPARED BY: Robert C. Safdls, 4SR .Pennsylvania Association of REALTORS® Revised 1/10 COPYRIGHT PENNSYLVANIA ASSOCIATION OF REALTORS®2010 Exhibit "B" ReaIFA$T® Softwiare, ©2011, Version 6.16. Software Registered to: Robert C. Saidis, Saidis, Sullivan & Rogers Buyer(s) Initiats:~ W 2' _ 09/02/11 10:11:40 Seller(s) Initials: ~ ~ .,,Page 1~ of 19 By signing this Agreement, Buyer and Seller each acknowledge having been previously informed of, and consented to, dual agency, if applicable. _ _ _ _ 1 1. By this Agreement, dated ~e~mber 2011 2 Seller hereby agrees to sell and convey to Buyer, who agrees to purchase, the identified Property. 3 2. PURCHASE PRICE AND DEPOSITS (I-10) 4 (A) Purchase Price $ 150 000.00 5 (one hundred fifty thousand U. S. Dollars), to be paid by Buyer as follows: 6 1. Deposit at signing of this Agreement: $ 5 , 000.00 7 2. Deposit within days of the Execution Date ofthis Agreement: $ 8 3. 9 4. Remaining balance will be paid at settlement. 10 (B) All funds paid by Buyer, including deposits, will be paid by check, cashier's check or wired funds. All funds paid by Buyer 11 within 30 DAYS of settlement, including funds paid at settlement, will be by cashier's check or wired funds, but not by l2 personal check. 13 (C) Deposits, regardless of the form of payment and the person designated as payee, will be paid in U.S. Dollars to Broker for Seller 14 (unless otherwise stated here: Manufacturers & Traders Trust Co. ) 15 who will retain deposits in an escrow account in conformity with all applicable laws and regulations until consummation or termination 16 of this Agreement. Only real estate brokers are required to hold deposits in accordance with the rules and regulations of the State Real 17 Estate Commission. Checks tendered as deposit monies may beheld uncashed pending the execution of this Agreement. 18 3. SELLERASSIST (If Applicable) (1-10) 19 Seller will pay $ 0.00 or % of Purchase Price (0 if not specified) toward Buyer's costs, as permitted by 20 the mortgage lender, if any. Seller is only obligated to pay up to the amount or percentage which is approved by mortgage lender. 21 4. SETTLEMENT AND POSSESSION (1-10) 22 (A) Settlement Date is March 31, 2012 , or before if Buyer and Seller agree. 23 (B) Settlement will occur in the county where the Property is located or in an adjacent county, during normal business hours, unless Buyer 24 and Seller agree otherwise. 25 (C) At time of settlement, the following will be pro-rated on a daily basis between Buyer and Seller, reimbursing where applicable: 26 current taxes (see Notice Regarding Real Estate Taxes); rents; interest on mortgage assumptions; condominium fees and homeowner 27 association fees; water and/or sewer fees, together with any other lienable municipal service fees. All charges will be pro-rated for the 28 period(s) covered. Seller will pay up to and including the date of settlement and Buyer will pay for all days following settlement, 29 unless otherwise stated here: 30 31 (D) Conveyance from Seller will be by fee simple deed of special warranty unless otherwise stated here: 32 Executor's Deed 33 (E) Payment oftransfertaxes will be divided equally between Buyerand Seller unless otherwise stated here: 34 If applicable 35 (F) Possession is to be delivered by deed, existing keys and physical possession to a vacant Property free of debris, with all structures 36 broom-clean, at day and time of settlement, unless Seller, before signing this Agreement, has identified in writing that the Property is 37 subject to a lease. 38 (G) If Seller has identified in writing that the Property is subject to a lease, possession is to be delivered by deed, existing keys and 39 assignment of existing leases for the Property, together with security deposits and interest, if any, at day and time of settlement. 40 Seller will not enter into any new leases, nor extend existing leases, for the Property without the written consent of Buyer. Buyer 41 will acknowledge existing lease(s) by initialing the lease(s) at the execution of this Agreement, unless otherwise stated in this 42 Agreement. 43 5. DATES/TIME IS OF THE ESSENCE (1-10) 44 (A) Written acceptance of all parties will be on or before: September 20, 2011 45 (B) The Settlement Date and al] other dates and times identified for the performance of any of the obligations ofthis Agreement are of 46 the essence and are binding. 47 (C) The Execution Date ofthis Agreement is the date when Buyer and Seller have indicated full acceptance ofthis Agreement by signing 48 and/or initialing it. For purposes of this Agreement, the number of days will be counted from the Execution Date, excluding the day 49 this Agreement was executed and including the last day of the time period. All changes to this Agreement should be initialed and 50 dated. 51 (D) The Settlement Date is not extended by any other provision ofthis Agreement and may only be extended by mutual written agreement 52 of the parties. 53 (E) Certain terms and time periods are pre-printed in this Agreement as a convenience to the Buyer and Seller. All pre-printed terms and 54 time periods are negotiable and may be changed by striking out the pre-printed text and inserting a different terms acceptable to all 55 parties. 56 6. ZONING (I-10) 57 Failure of this Agreement to contain the zoning classification (except in cases where the property {and each parcel thereof, if subdi- 58 vidable} is zoned solely or primazily to permit single-family dwellings) will render this Agreement voidable at Buyer's option, and if 'REPARED BY: Robert C. Saidis, aSR .Pennsylvania Association of REALTORS® devised 1/10 COPYRIGHT PENNSYLVANIA ASSOCIATION OF REALTORS® 2010 ~eaIFA$T®Software, 02011,~V/ersion 6.16. Software Registered to: Robert C. Saidis, Saidis, Sullivan & Rogers 3uyer(s) Initials: ~"~~ 09/02/11 10:03:41 ,_ Pag~ 2 of 19 Seller(s) Initials: JW~' ~u~q 59 voided, any deposits tendered by the Buyer will be returned to the Buyer without any requirement for court action. 60 Zoning Classification: Residential 61 7. FIXTURES & PERSONAL PROPERTY (1-10) 62 (A) INCLUDED in this sale are all existing items permanently installed in the Property, free of liens, including plumbing; heating; 63 radiator covers; lighting fixtures (including chandeliers and ceiling fans); pool and spa equipment (including covers and cleaning 64 equipment); electric anima] fencing systems (excluding collars); garage door openers and transmitters; television antennas; unpotted 65 shrubbery, plantings and trees; any remaining heating and cooking fuels stored on the Property at the time of settlement; smoke 66 detectors and carbon monoxide detectors; sump pumps; storage sheds; fences; mailboxes; wall to wall carpeting; existing window 67 screens, storm windows and screen/storm doors; window covering hardware, shades and blinds; awnings; built-in air conditioners; 68 built-in appliances; the range/oven, unless otherwise stated; and if owned, water treatment systems, propane tanks, satellite dishes 69 and security systems. Also included: 70 71 (B) The following items are LEASED (not owned by Seller). Contact the provider/vendor for more information (e. g., water treatment 72 systems, propane tanks, satellite dishes and security systems): 73 74 (C) EXCLUDED fixtures and items: 75 76 8. MORTGAGE CONTINGENCY (1-10) 77 ^ WAIVED. This sale is NOT contingent on mortgage financing, although Buyer may still obtain mortgage financing and/or the parties 78 may include an appraisal contingency. 79 ® ELECTED. 80 (A) This sale is contingent upon Buyer obtaining mortgage financing accordingto the followine terms: 81 82 83 84 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 100 101 102 103 104 105 106 107 108 109 110 111 112 113 114 115 116 117 118 119 120 121 First Mortgage on the Property Loan Amount $ 60 , 000.00 Minimum Term 30 years Type of mortgage Conventional Loan-To-Value (LTV) ratio: For non-FHA/VA loans LTV ratio not to exceed Mortgage Lender Interest rate 4.5 %; however, Buyer agrees to accept the the interest rate as may be committed by the mortgage lender, not to exceed a maximum interest rate of 5.5 %, Discount points, loan origination, loan placement and other fees charged by the lender as a percentage of the mortgage loan (excluding any mortgage insurance premiums or VA funding fee) not to exceed % (0% ifnot specified) of the mortgage loan. Second Mortgage on the Property Loan Amount $ MinimumTerm years Type ofmortgage Loan-To-Value (LTV) ratio: For non-FHA/VA loans LTV ratio not to exceed % Mortgage Lender Interest rate %; however, Buyer agrees to accept the the interest rate as may be committed by the mortgage lender, not to exceed a maximum interest rate of %. Discount points, loan origination, loan placement and other fees charged by the lender as a percentage of the mortgage loan (excluding any mortgage insurance premiums or VA funding fee) not to exceed % (0% if not specified) of the mortgage l~l ine interest rates) and tee(s) provtstons m paragraph 8(A) are satisfied ff the mortgage lender(s) gives Buyer the right to guarantee the interest rate(s) and fee(s) at or below the maximum levels stated. If lender(s) gives Buyer the right to lock in the intereste rate(s), Buyer will do so at least 15 days before Settlement Date. Buyer gives Seller the right, at Seller's sole option and as permitted by law and the mortgage lender(s), to contribute financially, without promise of reimbursement, to the Buyer and/or the mortgage lender(s) to make the above mortgage term(s) available to Buyer. (C) Within days (7 ifnot specified) from the Execution Date of this Agreement, Buyer will make a completed, written mortgage application (including payment for and ordering of appraisal and credit reports without delay, at the time required by lender(s)) for the mortgage terms and to the mortgage lender(s) identified in Paragraph 8(A), if any, otherwise to a responsible mortgage lender(s) of Buyet's choice. Broker for Buyer, if any, otherwise Broker for Seller, is authorized to communicate with the mortgage lender(s) to assist in the mortgage loan process. (D) Buyer will be in default of this Agreement if Buyer furnishes false information to anyone concerning Buyer's financial and/or employment status, fails to cooperate in good faith with processing the mortgage loan application (including delay of the appraisal), fails to lock in interest rate(s) as stated in Paragraph 8(B), or otherwise causes the lender to reject, refuse to approve or issue a mortgage loan commitment. (E) 1. Mortgage Commitment Date: February 28, 2012 Upon receiving a mortgage commitment, Buyer will promptly deliver a copy of the commitment to Seller. 2. If Seller does not receive a copy of the mortgage commitment(s) by the Mortgage Commitment Date, Seller may terminate this Agreement by written notice to Buyer. Seller's right to terminate continues until Buyer delivers a mortgage commitment to Seller. Until Seller terminates this Agreement, Buyer is obligated to make agood-faith effort to obtain mortgage financing. 3. Seller may terminate this Agreement by written notice to Buyer after the Mortgage Commitment Date if the mortgage commitment: a. Does not satisfy the terms of Paragraph 8(A), OR b. Contains any condition not specified in this Agreement (e.g., the Buyer must settle on another property, an appraisal must be received by the lender, or the mortgage commitment is not valid through the Settlement Date) that is not satisfied and/or removed in writing by the mortgage lender(s) within 7 DAYS after the Mortgage Commitment Date in Paragraph 8(E)(1), or any extension thereof, other than those conditions that are customarily satisfied at or near settlement (e.g., PREPARED BY: Robert C. Saldis, aSR .Pennsylvania Association of REALTORS® 2evised 1/10 COPYRIGHT PENNSYLVANIA ASSOCIATION OF REALTORS® 2010 ~eaIFA$T® Softwayre, 02011, Version 6.16. Software Registered to: Robert C. Saidis, Saidis, Sullivan & Rogers 3uyer(s) Initials: ~1ji(j~ 09/02/11 10:03:41 e3of19 Seller(s) Initials: (~z 122 123 124 125 126 127 128 129 130 131 132 133 134 135 136 137 138 139 140 141 142 143 144 145 146 147 148 149 150 151 152 153 154 155 156 157 158 159 160 161 162 9. 163 164 165 166 167 168 169 170 171 172 173 174 175 176 177 178 179 180 181 182 183 184 185 obtaining insurance, confirming employment). 4. If this Agreement is terminated pursuant to Paragraphs 8(E)(2) or (3), or the mortgage loan(s) is not obtained for settlement, all deposit monies will be returned to Buyer according to the terms of Paragraph 22 and this Agreement will be VOID. Buyer will be responsible for any costs incurred by Buyer for any inspections or certifications obtained according to the terms of this Agreement, and any costs incurred by Buyer for: (i) Title search, title insurance and/or mechanics' lien insurance, or any fee for cancellation; (2) Flood insurance, fire insurance, hazard insurance, mine subsidence insurance, or any fee for cancellation; (3) Appraisal fees and charges paid in advance to mortgage lender(s). (F) If the mortgage lender(s), or a property and casualty insurer providing property insurance required by the mortgage lender(s), requires repairs to the Property, Buyer will, upon receiving the requirements, deliver a copy of the requirements to Seller. Within 5 DAYS of receiving the copy of the requirements, Seller will notify Buyer whether Seller will make the required repairs at Seller's expense. 1. If Seller makes the required repairs to the satisfaction of the mortgage lender and/or insurer, Buyer accepts the Property and agrees to the RELEASE in paragraph 24 of this Agreement. 2. If Seller will not make the required repairs, or if Seller fails to respond within the stated time, Buyer will, within 5 DAYS, notify SellerofBuyer's choice to: a. Make the repairs/improvements at Buyer's expense, with permission and access to the Property given by Seller, which will not be unreasonably withheld, OR b. Terminate this Agreement by written notice to Seller, with all deposit monies returned to Buyer according to the terms of Paragraph 22 of this Agreement. If Buyer fails to respond within the time stated in Paragraph 8(F)(2) or fails to terminate th;c eornn...n..• ti...,...:u.._. __~___ FHA/VA, IF APPLICABLE (G) It is expressly agreed that notwithstanding any other provisions of this contract, Buyer will not be obligated to complete the purchase of the Property described herein or to incur any penalty by forfeiture of earnest money deposits or otherwise unless Buyer has been given, in accordance with HUD/FHA or VA requirements, a written statement by the Federal Housing Commissioner, Veterans Administration, or a Direct Endorsement Lender setting forth the appraised value of the Property of not less than $ (the Purchase Price as stated in this Agreement). Buyer will have the privilege and option of proceeding with consummation of the contract without regard to the amount of the appraised valuation. The appraised valuation is arrived at to determine the maximum mortgage the Department of Housing and Urban Development will insure. HUD does not warrant the value northe condition of the Property. Buyer should satisfy himself/herselfthat the price and condition of the Property are acceptable. Warning: Section 1010 ofTitle 18, U.S.C., Department of Housing and Urban Development and Federal Housing Administration Transactions, provides, "Whoever for the purpose of ...influencing in any way the action of such Department, makes, passes, utters or publishes any statement, knowing the same to be false shall be fined under this title or imprisoned not more than two years, or both." (H) U.S. Department of Housing and Urban Development (HUD) NOTICE TO PURCHASERS: Buyer's Acknowledgment ^ Buyer has received the HUD Notice "For Your Protection: Get a Home Inspection." Buyer understands the importance of getting an independent home inspection and has thought about this before signing this Agreement. Buyer understands that FHA will not perform a home inspection nor guarantee the price or condition of the Property. (I) Certification We the undersigned, Seller(s) and Buyer(s) party to this transaction each certify that the terms of this contract for purchase are true to the best of our knowledge and belief, and that any other agreemem entered into by any of these parties in connection with this transaction is attached to this Agreement_ C~Ti i TT T . ~ - ava~a a~+JUl'+i~1t111V1\~1 ~1 ~1 V~ (A) Radon Testing and Remediation (See Notice Regarding Radon) Seller has no knowledge about the presence or absence of radon unless checked below: ^ 1. Seller has knowledge that the Property was tested on the dates and by the methods (e.g. charcoal canister, alpha track, etc.), which produced the results indicated below: Date Type of Test Results (picoCuries/liter or working levels) Name of Testing Service ^ 2. Seller has knowledge that the Property had radon removal system(s) installed as indicated below: Date Installed Type ofSystem Provider (B) Status of Water Seller represents that the Property is served by: ® Public Water ^ Community Water ^ On-site Water ^ None ^ (C) Status of Sewer Seller represents that the Property is served by: ® Public Sewer ^ Community Sewage Disposal System ^ Ten-Acre Permit Exemption (see Sewage Notice 2) ^ Individual On-lot Sewage Disposal System (see Sewage Notice 1) ^ Holding Tank (see Sewage Notice 3) ^ Individual On-lot Sewage Disposal System in Proximityto Well (see Sewage Notice 1; see Sewage Notice 4, if applicable) ^ None (see Sewage Notice 1) ^ None Available/Permit Limitations in Effect (see Sewage Notice 5) (D) Historic Preservation Seller is not aware of historic preservation restrictions regarding the Property unless otherwise stated here: PREPARED BY: Robert C. Saidis, 4SR .Pennsylvania Association of REALTORS® devised 1/10 COPYRIGHT PENNSYLVANIA ASSOCIATION OF REALTORS® 2010 ReaIFA$T®Software, ®2011, Version 6.16. Software Registered to: Robert C. Saidis, Saidis, Sullivan & Rogers 3uyer(s) Initials. ~/1i .~~ 09/02/11 10:03:41 J ~~ ~ Page 4 of 19 Seller(s) Initials: ~i„ 186 187 (E) U Property, or a portion of it, is preferentially assessed for tax purposes under the following Act(s) (see Notices Regarding Land Use 188 Restrictions) 189 ^ Farmland and Forest Land Assessment Act (Clean and Green Program; Act 319 of 1974; 72 P.S. §5490.1 et seq.) 190 ^ Open Space Act (Act 442 of 1967; P.S. § 5001 et seq.) 191 ^ Agricultural Area Security Law (Act 43 of 1981; 3 P.S. §901 et seq.) 192 ^ Other 193 (F) Seller represents that, as of the date Seller signed this Agreement, no public improvement, condominium or homeowner association 194 assessments have been made against the Property which remain unpaid, and that no notice by any government or public authority has 195 been served upon Seller or anyone on Seller's behalf, including notices relating to violations of zoning, housing, building, safety or fire 196 ordinances that remain uncorrected, and that Seller knows of no condition that would constitute a violations of any such ordinances 197 that remain uncorrected, unless otherwise specified here: 198 199 (G) Seller knows of no other potential notices (including violations) and/or assessments except as follows: 200 201 (H) Access to a public road may require issuance of a highway occupancy permit from the Department of Transportation. 202 10. WAIVER OF CONTINGENCIES (9-OS) 203 If this Agreement is contingent on Buyer's right to inspect and/or repair the Property, or to verify insurability, environmental 204 conditions, boundaries, certifications, zoning classification or use, or any other information regarding the Property, Buyer's failure 205 to exercise any of Buyer's options within the times set forth in this Agreement is a WAIVER of that contingency and Buyer accepts 206 the Property and agrees to the RELEASE in paragraph 24 of this Agreement. 207 11. INSPECTIONS (1-10) (See Notices Regarding Property and Environmental Inspections) 208 (A) Rights and Responsibilities 209 1. Seller will provide access to insurers' representatives and, as may be required by this Agreement or by mortgage lender(s), to 210 surveyors, municipal officials, appraisers and inspectors. All parties and their real estate licensee(s) may attend any inspections. 211 2. Buyer may make apre-settlement walk-through inspection of the Property. Buyer's right to this inspection is not waived by any 212 other provision of this Agreement. 213 3. Seller will have heating and all utilities (including fuel(s)) on for all inspections/appraisals. 214 4. All inspectors, including home inspectors, are authorized by Buyer to provide a copy of any inspection Report to Broker for 215 Buyer. 216 5. Seller has the right, upon request, to receive a free copy of any inspection Report from the party for whom it was prepared. 217 (B) Buyer waives or elects at Buyer's expense to have the following Inspections, certifications, and investigations (referred to as 218 "Inspection" or "Inspections' performed byprofessional contractors, home inspectors, engineers, architects and other properly licensed 219 or otherwise qualified professionals. If the same inspector is inspecting more than one system, the inspector must comply with the 220 Home Inspection Law. (See Notice Regarding the Home Inspection Law) 221 (C) For elected Inspection(s), Buyer will, within the Contingency Period(s) stated in Paragraph 12(A), complete Inspections, obtain any 222 Inspection Reports or results (referred to as "Report" or "Reports"), and accept the Property, terminate this Agreement, or submit a 223 Written Corrective Proposal(s) to Seller, according to the terms of Paragraph 12(B). 224 Home/Property Inspections and Environmental Hazards (mold, etc.) 225 Elected Buyer may conduct an inspection of the Property's structural components; roof; exterior windows and exterior Waived 226 _/~ doors; exterior siding, Exterior Insulation and Finish Systems, fascia, gutters and downspouts; swimming pools, hot / 227 tubs and spas; appliances; electrical systems; interior and exterior plumbing; public sewer systems; heating and 228 cooling systems; water penetration; electromagnetic fields; wetlands and flood plain delineation; structure square 229 footage; mold and other environmental hazards (e.g., fungi, indoor air quality, asbestos, underground storage tanks, 230 etc.); and any other items Buyer may select. If Buyer elects to have a home inspection of the Property, as defined 231 in the Home Inspection Law, the home inspection must be performed by a full member in good standing of a 232 national home inspection association, or a person supervised by a full member of a national home inspection 233 association, in accordance with the ethical standards and code of conduct or practice of that association, or by a 234 properly licensed or registered engineer or architect. (See Notice Regarding the Home Inspection Law) 235 Wood Infestation 236 Elected Buyer may obtain a written "Wood-Destroying Insect Infestation Inspection Report "from an inspector certified as Waived 237 / X awood-destroying pests pesticide applicator and will deliver it and all supporting documents and drawings / 238 provided by the inspector to Seller. The Report is to be made satisfactory to and in compliance with applicable 239 laws, mortgage lenderrequirements, and/or Federal Insuringand Guaranteeing Agencyrequirements. The Inspection 240 is to be limited to all readily-visible and accessible areas of all structures on the Property, except fences. If the 241 Inspection reveals active infestation(s), Buyer, at Buyer's Expense, may obtain a Proposal from awood-destroying 242 pests pesticide applicator to treat the Property. If the Inspection reveals damage from active or previous 243 infestation(s), Buyer may obtain a written Report from a professional contractor, home inspector or structural 244 engineer that is limited to structural damage to the Property caused bywood-destroying organisms and a Proposal 245 to repair the Property. 246 Radon 247 Elected Buyer may obtain a radon test of the Property from a certified inspector. The U. S. Environmental Protection Waived 248 _/ X Agency (EPA) advises corrective action if the average annual exposure to radon is equal to or higher than 0.02 / 249 working levels or 4 picoCuries/liter (4pCi/L). 250 Water Service 251 Elected Buyer may obtain an Inspection of the quality and quantity of the water system from a properly licensed or Waived 'REPARED BY: Robert C. Saidis, aSR .Pennsylvania Association of REALTORS® 2evised 1/10 COPYRIGHT PENNSYLVANIA ASSOCIATION OF REALTORS® 2010 2eaIFA$T®Software, ®2011, Version 6.16. Software Registered to: Robert C. Saidis, Saidis, Sullivan & Rogers 3uyer(s) Initials:.~~li 09/02/11 10:03:41 Seller(s) Initials: `~~ ,v n ,age 5 of 19 2s2 2s3 2s4 2ss 2s6 2s7 2s8 2s9 260 261 262 263 264 265 266 267 268 269 270 271 272 273 274 275 276 277 278 279 280 281 282 283 284 28s 286 287 288 289 290 291 292 293 294 295 296 297 298 299 300 301 302 303 304 30s 306 307 308 309 310 311 312 313 314 31s 316 /x Elected -/~_ Elected / X Elected / X Elected / X Elected / X Elected otherwise qualified water/well testing company. If and as required by the inspection company, Seller, at Seller's expense, will locate and provide access to the on site (or individual) water system. Seller will restore the Property to its previous condition, at Seller's expense, prior to settlement. On-lot Sewage (If Applicable) Buyer may obtain an Inspection of the individual on-lot sewage disposal system from a qualified, professional inspector. If and as required by the inspection company, Seller, at Seller's expense, will locate, provide access to, and empty th individual onlot sewage disposal system. Seller will restore the Property to its previous condition, at Seller's expense, prior to settlement. See pazagraph 12(C) for more information regarding the Individual On-lot Sewage Inspection Contingency. Property Insurance Buyer may deterrnine the insurability of the Property by making application for property and casualty insurance for the Property to a responsible insurer. Broker for Buyer, if any, otherwise Broker for Seller, may communicate with the insurer to assist in the insurance process. If the Property is located in a flood plain, Buyer may be required to carry flood insurance at Buyer's expense, which may need to be ordered 14 days or more prior to Settlement Date. Property Boundaries Buyer may engage the services of a surveyor, title abstractor, or other qualified professional to assess the legal description, certainty and location of boundaries and/or quantum of land. Most Sellers have not had the Property surveyed as it is not a requirement of property transfer in Pennsylvania. Any fences, hedges, walls and other natural or constructed bazriers may or may not represent the true boundary lines of the Property. Any numerical representations of size of property are approximations only and maybe inaccurate. Deeds, Restrictions and Zoning Buyer may investigate easements, deed and use restrictions (including any historic preservation restrictions or ordinances) that apply to the Property and review local zoning ordinances. Buyer may verify that the present use of the Property (such as in-law quarters, apartments, home office, day care) is permitted and may elect to make the Agreement contingent upon an anticipated use. Present use: Lead-Based Paint Hazards (For Properties prior to 1978 only) Before Buyer is obligated to purchase a residential dwelling built prior to 1978, Buyer has the option to conduct a risk assessment and/or inspection of the Property for the presence of lead based paint and/or lead-based paint hazards unless Buyer waives that right Regardless of whether this inspection is elected or waived, the Residential Lead-Based Paint Hazard Reduction Act requires a Seller of property built prior to 1978 to provide the Buyer with anEPA-approved lead hazards information pamphlet titled Protect You r Family from Lead in Your Home, along with a separate form, attached to this Agreement, disclosing Seller's knowledge of lead-based paint hazards and any lead-based paint records regarding the Property. (See Notices Regarding Residential Lead-Based Paint Hazard Reduction Act) Other The Inspections elected above do not applyto the following existing conditions and/or items: Waived Waived Waived Waived Waived Waived 12. INSPECTION CONTINGENCY (1-10) (A) The Contingency Period is days (10 ifnot specified) from the Execution Date of this Agreement for each Inspection elected in Paragraph 11(C), except the following: Inspection(s) Contingency Period days days days days (B) Except as stated in Paragraph 12(C), if the result of any Inspection elected in Paragraph 11(C) is unsatisfactory to Buyer, Buyer will within the stated Contingency Period: I. Accept the Property with the information stated in the Report(s) and agree to the RELEASE in Paragraph 24 of this Agreement, OR 2. Terminate this Agreement by written notice to Seller, with all deposit monies returned to Buyer according to the terms of Paragraph 22 ofthis Agreement, OR 3. Present the Report(s) to Seller with a Written Corrective Proposal (°GProposal") listing corrections and/or credits desired by Buyer. The Proposal may, but is not required to, include the name(s) of a properly licensed or qualified professional(s) to perform the corrections requested in the Proposal, provisions for payment, including retests, and a projected date for completion of the corrections. Buyer agrees that Seller will not be held liable for corrections that do not comply with morgage lender or governmental requirements if performed in a workmanlike manner acwrding to the terms of Buyer's Proposal. a. No later than days (5 if not specified) from the end of the Contingency Period(s), Seller will inform Buyer in writing that Seller will: (1) Satisfy all the terms of Buyer's Proposal, OR (2) Not satisfy all the terms of Buyer's Proposal(s), OR (3) Negotiate a mutually acceptable written agreement with Buyer, providing for any repairs or improvements to the PREPARED BY: Robert C. Saidis, aSR .Pennsylvania Association of REALTORS® 2evised 1110 COPYRIGHT PENNSYLVANIA ASSOCIATION OF REALTORS® 2010 2eaIFA$T® Software, ®2011, Version 6.16. Software Registered to: Robert C. Saidis, Saidis, Sullivan & Rogers 3uyer(s) Initialsr~ ~~~ L..[L~J 09/02/11 10:03:41 y ~,,, Page 6 of 19 Seller(s) Initials:` ~" ~~ 317 Property and/or any credit to Buyer at settlement, as acceptable to the mortgage lender, if any. 318 b. If Seller agrees to satisfy the terms of Buyer's Proposal or Buyer and Seller enter into a mutually acceptable written 319 agreement, Buyer accepts the Property and agrees to the RELEASE in Paragraph 24 of this Agreement. 320 c. If Seller chooses not to satisfy all the terms of Buyer's Proposal and if Buyer and Seller do not enter into a mutually 321 acceptable written agreement, or if Seller fails to choose any option within the time given, Buyer will, within 322 days (2 if not specified): 323 (1) Accept the Property with the information stated in the Report(s) and agree to the RELEASE in Paragraph 24 of this 324 Agreement, OR 325 (2) Terminate this Agreement by written notice to Seller, with all deposit monies returned to Buyer according to the terms 326 of Paragraph 22 of this Agreement. 327 If Buyer fails to respond within the time stated in Paragraph 12(B)(3)(c) or fails to terminate this Agreement by 328 written notice to Seller within that time, Buyer will accept the Property and agree to the RELEASE in Paragraph 24 329 of this Agreement. 330 (C) If a Report reveals the need to expand or replace the existing individual on-lot sewage disposal system, Seller may, within 331 days (25 if not specified) of receiving the Report, submit a Proposal to Buyer. The Proposal will include, but not be limited to, the 332 name of the company to perform the expansion or replacement; provisions for payment, including retests; and a projected completion 333 date for corrective measures. Within 5 DAYS ofreceiving Seller's Proposal, or if no Proposal is provided within the stated 334 time, Buyer will notify Seller in writing of Buyer's choice to: 335 1. Agree to the terms of the Proposal, accept the Property and agree to the RELEASE in Paragraph 24 of this Agreement, OR 336 2. Terminate this Agreement by written notice to Seller, with all deposit monies returned to Buyer according to the terms of 337 Paragraph 22 of this Ageement, OR 338 3. Accept the Property and the existing system and agree to the RELEASE in Paragraph 24 of this Agreement. If required by any 339 mortgage lender and/or any governmental authority, Buyer will correct the defects before settlement or within the time required by 340 the mortgage lender and/or governmental authority, at Buyer's sole expense, with permission and access to the Property given by 341 Seller, which may not be unreasonably withheld. If Seller denies Buyer permission and/or access to correct the defects, Buyer 342 may, within 5 DAYS of Seller's denial, terminate this Agreement by written notice to Seller, with all deposit monies returned 343 to Buyer according to the terms of Paragraph 22 ofthis Agreement. 344 If Buyer fails to respond within the time stated in Paragraph 12(C) or fails to terminate this Agreement by written notice to 345 Seller within that time, Buyer will accept the Property and agree to the RELEASE in Paragraph 24 of this Agreement. 346 13. NOTICES, ASSESSMENTS AND MUNICIPAL REQUIREMENTS (1-10) 347 (A) In the event any notices, including violations, and/or assessments are received after Seller has signed this Agreement and before 348 settlement, Seller will within 5 DAYS of receiving the notices and/or assessments provide a copy of the notices and/or 349 assessments to Buyer and will notify Buyer in writing that Seller will: 350 1. Fully comply with the notices and/or assessments, at Seller's expense, before settlement. If Seller fully complies with the notices 351 and/or assessments, Buyer accepts the Property and agrees to the RELEASE in Paragraph 24 of this Agreement, OR 352 2. Not comply with the notices and/or assessments. If Seller chooses not to comply with the notices and/or assessments, or fails 353 within the stated time to notify Buyer whether Seller will comply, Buyer will notify Seller in writing within 5 DAYS that 354 Buyer will: 355 a. Comply with the notices and/or assessments at Buyer's expense, accept the Property, and agree to the RELEASE in 356 Paragraph 24 ofthis Agreement, OR 357 b. Terminate this Agreement by written notice to Seller, with all deposit monies returned to Buyer according to the terms of 358 Paragraph 22 ofthis Agreement. 359 If Buyer fails to respond within the time stated in Paragraph 13(A)(2) or fails to terminate this Agreement by written notice 360 to Seller within that tip, Buyer will accept the Property and agree to the RELEASE in Paragraph 24 ofthis Agreement. 361 (B) If required bylaw, within 30 DAYS from the Execution Date ofthis Agreement, but in no case later than IS DAYS prior to 362 Settlement Date, Sellerwill order at Seller's expense a certification from the appropriate municipal department(s) disclosing notice of 363 any uncorrected violations of coning, housing, building, safety or fire ordinances and/or a certificate permitting occupancy of the 364 Property. If Buyer receives a notice of any required repair~mprovements, Buyer will promptly deliver a copy of the notice to Seller. 365 1. Within 5 DAYS of receiving notice from the municipality that repairs/improvements are required, Seller will deliver a copy 366 of the notice to Buyer and notify Buyer in writing that Seller will: 367 a. Make the required repairslmprovements to the satisfaction of the municipality. If Seller makes the required repairs/ 368 improvements, Buyer accepts the Property and agrees to the RELEASE in Paragraph 24 ofthis Agreement, OR 369 b. Not make the required repair~mprovements. If Seller chooses not to make the required repairs/improvements, Buyer will 370 notify Seller in writing within 5 DAYS that Buyer will: 371 (1) Make the repair~mprovements at Buyer's expense, with permission and access to the Property given by Seller, which 372 will not be unreasonably withheld, OR 373 (2) Terminate this Agreemelt by written notice to Seller, with all deposit monies returned to Buyer according to the terms 374 of Paragraph 22 of this Agreement. 375 If Buyer fails to respond within the time stated in Paragraph 13(B)(1)(b) or fails to terminate this Agreement by 376 written notice to Seller within that time, Buyer will accept the Property and agree to the RELEASE in Paragraph 377 24 of this Agreement, and Buyer accepts the responsibility to perform the repairs/improvements according to the 378 terms of the notice provided by the municipality. 379 2. If Seller denies Buyer permission to make the required repairs/improvements, or does not provide Buyer access before Settlement 380 Date to make the required repairs/improvements, Buyer may, within 5 DAYS, terminate this Agreement by written notice to 381 Seller, with all deposit monies returned to Buyer according to the terms of Paragraph 22 of this Agreement. 382 3. If repairs/improvements are required and Seller fails to provide a copy of the notice to Buyer as required in this Paragraph, Seller PREPARED BY: Robert C. Saidis, ASR .Pennsylvania Association of REALTORS® 2evised 1110 COPYRIGHT PENNSYLVANIA ASSOCIATION OF REALTORS® 2010 2eaiFA$T® Software, ®2011, Version 6.16. Software Registered to: Robert C. Saidis, Saidis, Sullivan & Rogers 09/02/11 10:03:41 Page 7 of 19 3uyer(s) Initials u/~ ~~ Seller(s) Initials: ~ ~ 383 384 385 386 387 388 389 390 391 392 393 394 395 396 397 398 399 400 401 402 403 404 405 406 407 408 409 410 411 412 413 414 415 416 417 418 419 420 421 422 423 424 425 426 427 428 429 430 431 432 433 434 435 436 437 438 14. will perform al] repairs/improvements as required by the notice at Seller's expense. Paragraph 13(B)(3)will survive settlement. CONDOMINIUM/PLANNED COMMUNITY (HOMEOWNER ASSOCIATIONS) RESALE NOTICE (1-10) Property is NOT a Condominium or part of a Planned Community unless checked below. ^ CONDOMINIUM. The Property is a unit of a condominium that is primarily run by a unit owners' association. Section 3407 of the Uniform Condominium Act of Pennsylvania (see Notice Regarding Condominiums and Planned Communities) requires Seller to furnish Buyer with a Certificate of Resale and copies of the condominium declaration (other than plats and plans), the bylaws and the rules and regulations of the association. ^ PLANNED COMMUNITY (HOMEOWNER ASSOCIATION). The Property is part of a planned community as defined by the Uniform Planned Community Act (see Notice Regarding Condominiums and Planned Communities). Section 5407(a) ofthe Act requires Seller to famish Buyer with a copy of the Declaration (other than plats and plans), the bylaws, the rules and regulations of the association, and a Certificate containing the provisions set forth in section 5407(a) of the Act. THE FOLLOWING APPLIES TO PROPERTIES THAT ARE PART OF A CONDOMINIUM OR A PLANNED COMMUNITY. (A) Within IS DAYS from the Execution Date of this Agreement, Seller, at Seller's expense, will request from the association a Certificate of Resale and any other documents necessary to enable Seller to comply with the relevant Act. The Act provides that the association is required to provide these documents within 10 days of Seller's request. (B) Seller will promptly deliver to Buyer all documents received from the association. Under the Act, Seller is not liable to Buyer for the failure of the association to provide the Certificate in a timely manner or for any incorrect information provided by the association in the Certificate. (C) The Act provides that Buyer may declare this Agreement VOID at any time before Buyer receives the association documents and for 5 days after receipt, OR until settlement, whichever occurs first. Buyer's notice to Seller must be in writing; upon Buyer declaring this Agreement void, all deposit monies will be returned to Buyer according to the terms of Paragraph 22 ofthis Agreement. (D) If the association has the right to buy the Property (right of first refusal), and the association exercises that right, Seller will reimburse Buyer for any costs incurred by Buyer for any inspections or certifications obtained according to the terms of the Agreement, and any costs incun•ed by Buyer for: (1) Title search, title insurance and/or mechanics' lien insurance, or any fee for cancellation; (2) Flood insurance, fire insurance, hazard insurance, mine subsidence insurance, or any fee for cancellation; (3) Appraisal fees and charges paid in advance to mortgage lender. TITLE, SURVEYS AND COSTS (1-10) (A) The Property will be conveyed with good and marketable title that is insurable by a reputable title insurance company at the regular rates, free and clear of all liens, encumbrances, and easements, excepting however the following: existing deed restrictions; historic preservation restrictions or ordinances; building restrictions; ordinances; easements of roads; easements visible upon the. ground; easements of record; and privileges or rights of public service companies, if any. (B) Buyer will pay for the following: (1) Title search, title insurance and/or mechanics' lien insurance, or any fee for cancellation; (2) Flood insurance, fire insurance, hazard insurance, mine subsidence insurance, or any fee for cancellation; (3) Appraisal fees and charges paid in advance to mortgage lender; (4) Buyer's customary settlement costs and accruals. (C) Any survey or surveys required by the title insurance company or the abstracting company for preparing an adequate legal description of the Property (or the correction thereof) will be obtained and paid for by Seller. Any survey or surveys desired by Buyer or required by the mortgage lender will be obtained and paid for by Buyer. (D) If Seller is unable to give good and marketable title that is insurable by a reputable title insurance company at the regular rates, as specified in Paragraph 15(A), Buyer may terminate this Agreement by written notice to Seller, with all deposit monies returned to Buyer according to the terms of Paragraph 22 ofthis Agreement. Upon termination, Seller will reimburse Buyer for any costs incurred by Buyer for any inspections or certifications obtained according to the terms of this Agreement, and for those items specified in Paragraph I5(B) items (1), (2), (3) and in Paragraph 15(C). (E) Seller is not aware of the status of oil, gas and mineral rights for Property unless otherwise stated below: ^ Seller does not own all subsurface rights to the property. ^ Oil, Gas and Mineral Rights Addendum (PAR Form OGM) is attached. (F) COAL NOTICE (Where Applicable) THIS DOCUMENT MAY NOT SELL, CONVEY, TRANSFER, INCLUDE OR INSURE THE TITLE TO THE COAL AND RIGHTS OF SUPPORT UNDERNEATH THE SURFACE LAND DESCRIBED OR REFERRED TO HEREIN, AND THE OWNER OR OWNERS OF SUCH COAL MAY HAVE THE COMPLETE LEGAL RIGHT TO REMOVE ALL SUCH COAL AND IN THAT CONNECTION, DAMAGE MAY RESULT TO THE SURFACE OF THE LAND AND ANY HOUSE, BUII,DING OR OTHER STRUCTURE ONOR INSUCHLAND. (This notice is set forth in the manner provided in Section 1 of the Act of July 17, 1957, P.L. 984.) "Buyer acknowledges that he may not be obtaining the right of protection against subsidence resulting from coal mining operations, and that the property described herein may be protected from damage due to mine subsidence by a private contract with the owners of the economic interests in the coal. This acknowledgement ismade for the purpose of complying with the provisions of Section 14 of the Bituminous Mine Subsidence and the Land Conservation Act of April 27, 1966." Buyer agrees to sign the deed from Seller which deed will contain the aforesaid provision. (G) The Property is not a "recreational cabin" as defined in the Pennsylvania Construction Code Act unless otherwise stated here (see Notice Regarding Recreational Cabins): MAINTENANCE AND RISK OF LOSS (i-10) (A) Seller will maintain the Property, grounds, fixtures and personal property specifically listed in this Agreement in its present condition, normal wear and tear excepted. (B) If any system or appliance included in the sale of the Property fails before settlement, Seller will: 1. Repair or replace the failed system or appliance before settlement, OR 2. Provide prompt written notice to Buyer of Seller's decision to: a. Credit Buyer at settlement for the fair market value of the failed system or appliance, as acceptable to the mortgage lender, ifany, OR b. Not repair or replace the failed system or appliance, and not credit Buyer at settlement for the fair market value of the failed 15. 439 440 16. 441 442 443 444 445 446 447 448 PREPARED BY: Robert C. Saidis, ASR .Pennsylvania Association of REALTORS® Revised 1/10 COPYRIGHT PENNSYLVANIA ASSOCIATION OF REALTORS® 2010 ReaIFA$T® Software, ®2011, Version 6.16. Software Registered to: Robert C. Saidis, Saidis, Sullivan & Rogers 09/02/11 10:03:41 a Page 8 of 19 Buyer(s) Initials: ~~ v Seller(s) Initials: ~~~/~~ 449 system or appliance. 450 3. If Seller does not repair or replace the failed system or appliance or agree to credit Buyer for its fair market value, or if Seller 451 fails to notify Buyer of Seller's choice Buyer will notify Seller in writing within 5 DAYS or before Settlement Date, 452 whichever is earlier, that Buyer will: 453 a. Accept the Property and agree to the RELEASE in Paragraph 24 of this Agreement, OR 454 b. Terminate this Agreement by written notice to Seller, with all deposit monies returned to Buyer according to the terms of 455 Paragraph 22 ofthis Agreement. 456 If Buyer fails to respond within the time stated in Paragraph 16(B)(3) or fails to terminate this Agreement by written 457 notice to Seller within that time, Buyer will accept the Property and agree to the RELEASE in Paragraph 24 of this 458 Agreement. 459 (C) Seller bears the risk of loss from fire or other casualties until settlement. If any property included in this sale is destroyed and not 460 replaced, prior to settlement, Buyer will: 461 1. Accept the Property in its then current condition together with the proceeds of any insurance recovery obtainable by Seller, OR 462 2. Terminate this Agreement by written notice to Seller, with all deposit monies returned to Buyer according to the terms of 463 Paragraph 22 ofthis Agreement. 464 17. HOME WARRANTIES (1-10) 465 At or before settlement, either pazty may purchase a home warranty for the Property from athird-party vendor. Buyer and Seller 466 understand that a home warranty for the Property does not alter any disclosure requirements of Seller, will not cover or warrant any 467 pre-existing defects of the Property, and will not alter, waive or extend any provisions of this Agreement regarding inspections or 468 certifications that Buyer has elected or waived as part of thisAgreement. Buyer and Seller understand that a broker who recommends a home 469 wan•anty may have a business relationship with the home wazranty company that provides a financial benefit to the broker. 470 18. RECORDING (9-05) 471 This Agreement will not be recorded in the Office of the Recorder of Deeds or in any other office or place ofpublic record. If Buyer causes 472 or permits this Agreement to be recorded, Seller may elect to treat such act as a default of this Agreement. 473 19. ASSIGNMENT (1-10) 474 This Agreement is binding upon the parties, their heirs, personal representatives, guazdians and successors, and to the extent assignable, on 475 the assigns of the pazties hereto. Buyer will not transfer or assign this Agreement without the written consent of Seller unless otherwise 476 stated in this Agreement. Assignment of this Agreement may result in additional transfer taxes. 477 20. GOVERNING LAW, VENUE AND PERSONAL JURISDICTION (9-05) 478 (A) The validity and construction of this Agreement, and the rights and duties of the parties, will be governed in accordance with the laws 479 of the Commonwealth of Pennsylvania. 480 (B) The parties agree that any dispute, controversy or claim arising under or in connection with this Agreement or its performance by 481 either party submitted to a court shall be filed exclusively by and in the state or federal courts sitting in the Commonwealth of 482 Pennsylvania. 483 21. REPRESENTATIONS (1-10) 484 (A) All representations, claims, advertising, promotional activities, brochures or plans of any kind made by Seller, Brokers, their licensees, 485 employees, officers or partners are not a part of this Agreement unless expressly incorporated or stated in this Agreement. This 486 Agreement contains the whole agreement between Seller and Buyer, and there are no other terms, obligations, covenants, 487 representations, statements or conditions, oral or otherwise, of any kind whatsoever concerning this sale. This Agreement will not be 488 altered, amended, changed or modified except in writing executed by the parties. 489 (B) Unless otherwise stated in this Agreement, Buyer has inspected the Property (including fixtures and any personal property 490 specifically listed herein) before signing this Agreement or has waived the right to do so, and agrees to purchase the Property 491 IN ITS PRESENT CONDITION, sub jectto inspection contingencies elected in this Agreement. Buyer acknowledges thatBrokers, 492 their licensees, employees, officers or partners have not made an independent examination or determination of the structural 493 soundness of the Property, the age or condition of the components, environmental conditions, the permitted uses, nor of 494 conditions existing in the locale where the Property is situated; nor have they made a mechanical inspection of any of the 495 systems contained therein. 496 (C) Any repairs required by this Agreement will be completed in a workmanlike manner. 497 (D) Broker(s) have provided or may provide services to assist unrepresented parties in complying with this Agreement. 498 22. DEFAULT, TERMINATION AND RETURN OF DEPOSITS (1-10) 499 (A) Where Buyer terminates this Agreement pursuant to any right granted by this Agreement, Buyer will be entitled to a return of all 500 deposit monies paid on account of Purchase Price pursuant to the terms of Paragraph 22(B), and this Agreement will be VOID. 501 Termination of this Agreement may occur for other reasons giving rise to claims by Buyer and/or Seller for the deposit monies. 502 (B) Regardless of the apparent entitlement to deposit monies, Pennsylvania law does not allow a Broker holding deposit monies to 503 determine who is entitled to the deposit monies when settlement does not occur. Broker can only release the deposit monies: 504 1. If this Agreement is terminated prior to settlement and there is no dispute over entitlement to the deposit monies. A written 505 agreement signed by both parties is evidence that there is no dispute regarding deposit monies. 506 2. If, after Broker has received deposit monies, Broker receives a written agreement that is signed by Buyer and Seller, directing 507 Broker how to distribute some or all ofthe deposit monies. 508 3. According to the terms of a final order of court. 509 4. According to the terms of a prior written agreement between Buyer and Seller that directs the Broker how to distribute the deposit 510 monies if there is a dispute between the parties that is not resolved. (See Paragraph 22(C)) 51 I (C) Buyer and Seller agree that if there is a dispute over the entitlement to deposit monies that is unresolved 365 days after the 512 Settlement Date stated in Paragraph 4(A), or any written extensions thereof, the Broker holding the deposit monies will, within 30 days 513 of receipt of Buyer's written request, distribute the deposit monies to Buyer unless the Broker is in receipt of verifiable writt~ notice 514 that the dispute is the subject of litigation. If Broker has received verifiable written notice of litigation prior to the receipt of Buyer's PREPARED BY: Robert C. Saidis, 4SR .Pennsylvania Association of REALTORS® devised 1/10 COPYRIGHT PENNSYLVANIA ASSOCIATION OF REALTORS® 2010 ~eaIFA$T®Software, ®2011, Version 6.16. Software Registered to: Robert C. Saidis, Saidis, Sullivan 8 Rogers 3uyer(s) Initial~~V 09/02/11 10:03:41 `` ~ 9 of 19 Seller(s) Initialstl ~ j' 515 request for distribution, Broker will continue to hold the deposit monies until receipt of a written distribution agreement between Buyer 516 and Seller or a final court order. Buyer and Seller are advised to initiate litigation for any portion of the deposit monies prior to any 517 distribution made by Broker pursuant to this paragraph. Buyer and Seller agree that the distribution of deposit monies based upon the 518 passage of time does not legally determine entitlement to deposit monies, and that the parties maintain their legal rights to pursue 519 litigation even after a distribution is made. 520 (D) Buyer and Seller agree that Broker who holds or distributes deposit monies pursuant to the terms of Paragraph 22 or Pennsylvania 521 law will not be liable. Buyer and Seller agree that if any Broker or affiliated licensee is named in litigation regarding deposit monies, 522 the attorneys' fees and costs of the Broker(s) and licensee(s) will be paid by the party naming them in litigation. 523 (E) Seller has the option of retaining all sums paid by Buyer, including the deposit monies, should Buyer: 524 1. Fail to make any additional payments as specified in Paragraph 2, OR 525 2. Furnish false or incomplete information to Seller, Broker(s), or any other party identified in this Agreement concerning Buyer's 526 legal or financial status, OR 527 3. Violate or fail to fulfill and perform any other terms or conditions of this Agreement. 528 (F) Unless otherwise checked in Paragraph 22(G), Seller may elect to retain those sums paid by Buyer, including deposit monies: 529 1. On account of purchase price, OR 530 2. As monies to be applied to Seller's damages, OR 531 3. As liquidated damages for such default. 532 (G) ^ SELLER IS LIMITED TO RETAINING SUMS PAID BY BUYER, INCLUDING DEPOSIT MONIES, AS 533 LIQUIDATED DAMAGES. 534 (H) If Seller retains all sums paid by Buyer, including deposit monies, as liquidated damages pursuant to Paragraph 22(F) or (G), Buyer 535 and Seller are released from further liability or obligation and this Agreement is VOID. 536 (I) Brokers and licensees are not responsible for unpaid deposits. 537 23. MEDIATION (1-10) 538 'B1-jrdr~abld\Sb11dr\JvN1~s\tbin`it\aN>\cYi~~itds\drbLfi~~lHalbi~i~e\~dr1~~tAi~~A~elr)ebi~Y~cYilaiil~$t~~ukds\~rld\~1~itn~rb4Ar\c~e`pb~it~~'ztb~li>~~,~td 539 l~eli~a'bbrL~IVlddi~d~oh\~ill~blebm~ld~3ci~l~iil ~sdcbl~alad~Jv~tA ~hbY~il~s~aloN'Pkdcb2lilras\dt~tkAldb~lib`gb1Y(bkile~Z:t'sYai~pbte\ltasblu`ttb3s 540 'gjcstdri~,\Llrllds'~Vt\i~bbl~'~Je'ilbBdb,V'Li\~ti~i~2c~sb~u~at\~n1d\SeYI~~\dv~ll~lnl;liilal!e\a~cbdr~li~g~tb`tA~~el~nls~dRtYialr'<eld'ia`tibls~~''tdnlb~~eldb\ 541 b>ldobs~e>'1\Hy\t'haYacaal~A~SkdcYa`tibl~b`f~\41ll'1~Q1~,~\h~ek~atib~l`f~e~\ddn`ta~ii>e~iYi\tkl:bldd'Sa`tdr'~s\~eb\sbAddld~e~W~itiV~~drJ~iNdd,a~a~ljr 542 l~tbb-1~. lh~e\~aktYcs~ahkt\~i~t\He\IAayd i4dtbi\e\t`hh b'~d~a`abh bb>lib~ebb~. \'1Vi~is\ inle~lt~lxatj, ~>bbdsb WYdsl ba bbi~ItldeldV~e`fdrts bi~~k p~rt~ ~o\t`iia 543 ~l~sj~t~itbbla\j\ibk~a~e\Ib~l~ptaceb~lila~s\i~n\~n~y\dob~obirt~Wi~h\t'kalekae~ib~r\b~~ik~~l~s~ilil~olz~'it\t1`i,s\i1~cb~s~tb~sldp\~n~b~ahltbb`f s44 'lihi`itb~idrls\~drla~ek~h>li~\Aln~ h~i`eb>lib~t\~le~aZttb~l ~tArb~-~N, lrleliiu~ia~ 1a~tcY ~i~hA,d ~~ `tAe\llaltlids'~~v111~ ~A `binldYn~g\(~s~e1 ltlbi~idc\ kb~at~Yila~ 545 ~eld~a`ttblt~ ~by~ie~;h~iu~tb l~le~llatelcli?~kitAsb~ b1~aYria~, ~-~g\frarb `tlv~, lA~elnli;hirJviYl~s\tkJi~ ~x~e~ebt \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ 546 24. RELEASE (9-05) 547 Buyer releases, quit claims and forever discharges SELLER, ALL BROKERS, their LICENSEES, EMPLOYEES and any OFFICER 548 or PARTNER of any one of them and any other PERSON, FIRM or CORPORATION who maybe liable by or through them, from 549 any and all claims, losses or demands, including, but not limited to, personal injury and property damage and all of the 550 consequences thereof, whether known or not, which may arise from the presence of termites or other wood-boring insects, radon, 551 lead-based paint hazards, mold, fungi or indoor air quality, environmental hazards, any defects in the individual on-lot sewage 552 disposal system or deficiencies in the on-site water service system, or any defects or conditions on the Property. Should Seller be in 553 default under the terms of this Agreement or in violation of any Seller disclosure law or regulation, this release does not deprive 554 Buyer of any right to pursue any remedies that may be available under law or equity. This release will survive settlement. 555 25. REAL ESTATE RECOVERY FUND (9-05) 556 I\\l~al~ ~?st~~ebaJ~rjc'Fixr~dd~i~t?s ~n\t~eMlljak~e\~r-~~p~eks'ntt~, iv1~d h~ae\db~ih&Z,~ bir~l~c~J~i)\,~~l~rhark~a~~aib~t~a\lidc~~~l~ar~a\>`e>~1`~latt~ 557 ivdel>?~e\(bitlVitv2:i't~l~'bra`ffil'fa`t~s~biv`lrlg\tb\fiabll\In1sr3~th~ia~b~~deii\ili\a\i~elaA~s't~,`a'ml~abi5drt\~Jvhdlsi~ae\>jeleit~ub'n6la`td 558 ddl lti=ist\('h>e\j~t~n'ldrt`t ~a'I3bt\ a~ll~ali~tkig\~l>\ ~~i\~ tltlih \rbt`nb2lib~. \I~D~ \ bdrlQ~lbt~e\de`t~iPs\albb~i\ i"hle\I~ld\ hill. X~ba `P`83 `Sli ~~ bl~ s 59 l~~$~i2\~,l~l`S~(ivYt'kin\ Itar#t,~~l\~r~~>\ah-ld~('X lu~'P'g3,~`8~~ ~o1t1~1devPel~h~,})laalt~aq ~ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ 560 26. COMMUNICATIONS WITH BUYER AND/OR SELLER (1-10) 561 Wherever this Agreement contains a provision that requires or allows communication/delivery to a Buyer, that provision shall be satisfied 562 by communication/delivery to the Broker for Buyer, if any, except for documents required to be delivered pursuant to Paragraph 14. 563 ~Il'~l-lele\tuba`)oralae~`fdr\>~yb~`tAo~sa~il~ov'i~'idn`s~#ayv)e\S1~t1s~Ae><lbblaok~r~'ulnlcakibilhldPiaek~,e~iil~i'n>s<xd,Yilce~ctljr`rd,t~hb~uyh~b~111e~s 564 bl!hbi\.ikik~~rhr~thb~ i~hle~plaklek. Wherever this Agreement contains a provision that requires or allows communication/delivery to a Seller, 565 that provision shall be satisfied by communication/delivery to the Broker for Seller, if any.~i~~hl~l~e\i~lia~F3ralZek'fdr\S~e11h~1hb~A~ftb\~i~sioh~ 566 lnhjcbh k~sbad. b~-ljrbjrbarla~ntih~b'at'iankdeYitiary~ble~n~bb~~dirbdtY~tb~tAd,~,evl~,Wbl~eb~,atb~lWi~e\a~C~e~t~ta b~ i~le~i¢l~. 567 27. SPECIAL CLAUSES (1-10) 568 (A) The following are part of this Agreement if checked: 569 ^ Sale & Settlement of Other Property Contingency Addendum (PAR Form SSP) 570 ^ Sate & Settlement of Other Property Contingency with Right to Continue Marketing Addendum (PAR Form SSP-CM) 571 ^ Settlement of Other Property Contingency Addendum (PAR Form SOP) 572 ^ Short Sale Addendum to Agreement of Sale (PAR Form SHS) 573 ^ Appraisal Contingency Addendum (PAR Form ACA) 574 ^ 575 ^ 576 ^ 577 (B) Additional Terms: 578 579 580 Buyer and Seller acknowledge receipt of a copy of this Agreement at the time of signing. PREPARED BY: Robert C. Saidis, ASR .Pennsylvania Association of REALTORS® Revised 1/10 COPYRIGHT PENNSYLVANIA ASSOCIATION OF REALTORS® 2010 ReaIFA$T® Software, ®2011, Version 6.16. Software Registered to: Robert C. Saidis, Saidis, Sullivan 8< Rogers ~''6 ~ 09/02/11 10:03:41 Buyer(s) Initials: c~~ Page 10 of 19 Seller(s) Initials: "'~~ 581 582 This Agreement may be executed in one or more counterparts, each of which shall be deemed to be an original and which counterparts 583 together shall constitute one and the same Agreement of the Parties. 584 585 NOTICE TO PARTIES: WHEN SIGNED, THIS AGREEMENT IS A BINDING CONTRACT. Parties to this transaction are advised 586 to consult a Pennsylvania real estate attorney before signing if they desire legal advice. 587 588 Return of this Agreement, and any addenda and amendments, including return by electronic transmission, bearing the signatures of 589 all parties, constitutes acceptance by the parties. 590 591 / Buyer has received the Consumer Notice as adopted by the State Real Estate Commission at 49 Pa. Code § 35.336. 592 593 / Buyer has received a statement of Buyer's estimated closing rnsts before signing this Agreement. 594 595 / Buyer has read and understands the notices and explanatory information in this Agreement. 596 597 / BuyerhasreceivedaSeller'sPropertyDisclosureStatementbeforesigningthisAgreement,ifrequiredbylaw(seeInformation 598 Regarding the Real Estate Seller Disclosure Law). 599 600 / BuyerhasreceivedtheDepositMoneyNotice(forcooperativesaleswhenBrokerforSellerisholdingdepositmoney)before 601 signing this Agreement. 602 603 / Buyer has received the Lead-Based Paint Hazards Disclosure, which is attached to this Agreement of Sale, and the 604 pamphlet Protect Your Family from Lead in Your Home (for properties built prior to 1978) 605 606 WITNESS {LC. BUYER " "' ~ ~ / Q •• ~~ DATE Jack Ziegler WITNESS BUYER DATE Jf ~ _ I ~ WITNESS I ~/~`~-- BUYER j j b DATE ! Q ~~ ' l' a Darlene Ziegler 607 Seller has received the Consumer Notice as adopted by the State Real Estate Commission at 49 Pa. Code § 35.336. 608 Seller has received a statement of Seller's estimated closing costs before signing this Agreement. 609 Seller has read and understands the notices and explanatory information in this Agreement. g~~' Manufacturers & Traders Trust Co. WITNESS vVr~ ~ lQ ~ SELLER ~,~,a,~ ~Yl .~ILp° DATE /d/f~ =L-__ By: Manufacturers & Traders Trust Co. WITNESS SELLER DATE ~~ ~ i /~ I WITNESS ~ SELLER ~ DATE I v "" ~ f 1 Jack Ziegler, Co ec ors, Estate of Anna C. Ziegler 'REPARED BY: Robert C. Saidis, ASR .Pennsylvania Association of REALTORS® devised 1/10 COPYRIGHT PENNSYLVANIA ASSOCIATION OF REALTORS® 2010 2eaIFA$T®Software, 02011, Version 6.16. Software Registered to: Robert C. Saidis, Saidis, Sullivan & Rogers 09/02/11 10:12:03 Page 11 of 19 NOTICE REGARDING CONVICTED SEX OFFENDERS (MEGAN'S LAW) The Pennsylvania General Assembly has passed legislation (often referred to as "Megan's Law," 42 Pa.C.S. § 9791 et. seq.) providing for community notification of the presence of certain convicted sex offenders. Buyers are encouraged to contact the municipal police department or the Pennsylvania State Police for information relating to the presence of sex offenders near a particular property, or to check the information on the Pennsylvania State Police Web site at www.pameganslaw.state.pa.us. FOREIGN INVESTMENT IN REAL PROPERTY TAX ACT OF 1980 (FIRPTA) The disposition of a U.S. real property interest by a foreign person (the transferor) is subject to the Foreign Investment in Real Property Tax Act of 1980 (FIRPTA) income tax withholding. FIRPTA authorized the United States to tax foreign persons on dispositions of U. S. real property interests. This includes but is not limited to a sale or exchange, liquidation, redemption, gift, transfers, etc. Persons purchasing U.S. real property interests (transferee) from foreign persons, certain purchasers' agents, and settlement officers are required to withhold 10 percent of the amount realized (special rules for foreign corporations). Withholding is intended to ensure U.S. taxation of gains realized on disposition of such interests. The transferee/Buyer is the withholding agent. If you are the transferee/Buyer you must find out if the transferor is a foreign person. If the transferor is a foreign person and you fail to withhold, you may be held liable for the tax. NOTICE REGARDING REAL ESTATE TAXES (Paragraph 2: Purchase Price and Deposits) Real Estate Tax Proration: For purposes of prorating real estate taxes, the "periods covered" by the tax bills are as follows: Municipal Taxes: For all counties and municipalities in Pennsylvania, tax bills are for the period January 1 to December 31. School Taxes: For all school districts, other than the Philadelphia. Pittsburgh and Scranton school districts, the period covered by the tax bill is July 1 to June 30. For the Philadelphia, Pittsburgh and Scranton school districts, tax bills are for the period January 1 to December 31. Real Estate Assessment: In Pennsylvania, taxing authorities (school districts and municipalities) and property owners may appeal the assessed value for the property at the time of sale, or at any time thereafter. A successful appeal by a taxing authority may result in a higher assessed value for the property and an increase in property taxes. Also, periodic county-wide property reassessments may change the assessed value of the property and result in a change in property tax. NOTICE TO BUYERS SEEKING MORTGAGE FINANCING (Paragraph 8: Mortgage Contingency) The appraised value of the Property is used by lenders to determine the maximum amount of a mortgage loan. The appraised value is determined by an independent appraiser, subject to the mortgage lender's underwriter review, and may be higher or lower than the Purchase Price and/or market price ofthe property. The Loan-To-Value Ratio (LTV) is used by lenders as one tool to help assess the potential risk of a mortgage loan. LTV is determined by dividing the requested loan amount by either the Purchase Price or the appraised value of the property, whichever is lower. Aparticular LTV may be necessaryto qualify for certain loans, or Buyers might be required to pay additional fees if the LTV exceeds a specific level. NOTICE REGARDING TRUTH IN LENDING (Paragraph 8: Mortgage Contingency) The Mortgage Disclosure Improvement Act requires mortgage lenders to provide Buyer with a Truth in Lending (TIL) statement at the time of mortgage application (early disclosure) and anytime thereafter (re-disclosure) if the annual percentage rate (APR) changes by more than .125 percent. Settlement cannot occur within 7 days of the early disclosure or within 3 days of re-disclosure. If a re-disclosure of a TIL statement is made within 3 days of the Settlement Date in the Agreement, settlement for the Property would have to occur after the Settlement Date stated. Buyer and Seller are advised that the APR may change by more than .125 percent based on factors including, but not limited to, Seller credits, changes in loan amount or duration, and Settlement Date change. If the Buyer and Seller agree to modify the Settlement Date in response to the TIL statement waiting period, or for any other reason, it should be done by mutual written agreement of the parties. PREPARED BY: Robert C. Saidis, ASR .Pennsylvania Association of REALTORS® Revised 1/10 COPYRIGHT PENNSYLVANIA ASSOCIATION OF REALTORS® 2010 ReaIFA$T® Software, ©2011, Version 6.16. Software Registered to: Robert C. Saidis, Saidis, Sullivan & Rogers Buyer(s) Initials:~J~~-~~ 09/02/11 10:03:41 J~v rPage 12 of 19 Seller(s) Initials: tf141 SEWAGE NOTICES (Paragraph 9: Seller Representations) NOTICES PURSUANT TO THE PENNSYLVANIA SEWAGE FACILITIES ACT NOTICE 1: THERE IS NO CURRENTLY EXISTING COMMUNITY SEWAGE SYSTEM AVAILABLE FOR THE SUBJECT PROPERTY. Section 7 of the Pennsylvania Sewage Facilities Act provides that no person shall install, construct, request bid proposals for construction, alter, repair or occupy any building or structure for which an individual sewage system is to be installed, without first obtaining a permit. Buyer is advised by this notice that, before signing this Agreemem, Buyer should contact the local agency charged with administering the Act to determine the procedure and requirements for obtaining a permit for an individual sewage system. The local agency charged with administering the Act will be the municipality where the Property is located or that municipality working cooperatively with others. NOTICE 2: THIS PROPERTY IS SERVICED BY AN INDIVH)UAL SEWAGE SYSTEM INSTALLED UNDER THE TEN-ACRE PERMIT EXEMPTION PROVISIONS OF SECTION 7 OF THE PENNSYLVANIA SEWAGE FACILITIES ACT. (Section 7 provides that a permit may not be required before installing, constructing, awarding a contract for construction, altering, repairing, or connecting to an individual sewage system where aten-acre parcel or lot is subdivided from a parent tract after January 10, 1987). Buyer is advised that soils and site testing were not conducted and that, should the system malfunction, the owner of the Property or properties serviced by the system at the time of a malfunction may be held liable for any contamination, pollution, public health hazard or nuisance which occurs as a result. NOTICE 3: THIS PROPERTY IS SERVICED BY A HOLDING TANK (PERMANENT OR TEMPORARY) TO WHICH SEWAGE IS CONVEYED BY A WATER CARRYING SYSTEM AND WHICH IS DESIGNED AND CONSTRUCTED TO FACILITATE ULTIMATE DISPOSAL OF THE SEWAGE AT ANOTHER SITE. Pursuant to the Pennsylvania Sewage Facilities Act, Seller must provide a history of the annual cost of maintaining the tank from the date of its installation or December 14, 1995, whichever is later. NOTICE 4: AN INDIVIDUAL SEWAGE SYSTEM HAS BEEN INSTALLED AT AN ISOLATION DISTANCE FROM A WELL THAT IS LESS THAN THE DISTANCE SPECIFIED BY REGULATION. The regulations at 25 Pa. Code §73.13 pertaining to minimum horizontal isolation distances provide guidance. Subsection (b) of §73.13 states that the minimum horizontal isolation distance between an individual water supply or water supply system suction line and treatment tanks shall be SO feet. Subsection (c) of §73.13 states that the horizontal isolation distance between the individual water supply or water supply system suction line and the perimeter of the absorption area shall be 100 feet. NOTICE 5: THIS LOT IS WITHIN AN AREA IN WHICH PERMIT LIMITATIONS ARE IN EFFECT AND IS SUBJECT TO THOSE LIMITATIONS. SEWAGE FACILITIES ARE NOT AVAILABLE FOR THIS LOT AND CONSTRUCTION OF A STRUCTURE TO BE SERVED BY SEWAGE FACILITIES MAY NOT BEGIN UNTIL THE MUNICIPALITY COMPLETES A MAJOR PLANNING REQUIREMENT PURSUANT TO THE PENNSYLVANIA SEWAGE FACILITIES ACT AND REGULATIONS PROMULGATED THEREUNDER. 'REPARED BY: Robert C. Saidis, aSR .Pennsylvania Association of REALTORS® 2evised 1/10 COPYRIGHT PENNSYLVANIA ASSOCIATION OF REALTORS® 2010 2eaIFA$T® Software, 02011, Version 6.16. Software Registered to: Robert C. Saidis, Saidis, Sullivan & Rogers 3uyer(s) Initials:~~~~~~ 09/02/11 10:03:41 age 13 of 19 Seller(s) Initials: ~~ NOTICES REGARDING LAND USE RESTRICTIONS (Paragraph 9: Seller Representations) NOTICE PURSUANT TO THE PENNSYLVANIA RIGHT-TO-FARM LAW (3. P.S. § 951-957) The property you are buying may be located in an area where agricultural operations take place. Pennsylvania protects agricultwal resources for the production of food and agricultural products. The law limits circumstances where normal agricultural operations maybe subject to nuisance lawsuits or restrictive ordinances. FARMLAND AND FOREST LAND ASSESSMENT ACT (CLEAN AND GREEN PROGRAM) (72 P.S. § 5490.1 et seq.) Properties enrolled in the Clean and Green Program receive preferential tax assessment. Notices Required by Seller: A Seller of Property enrolled in the Clean and Green Program must submit notice of the sale and any proposed changes in the use of Seller's remaining enrolled Property to the County Assessor 30 days before the transfer of title to Buyer. Notices Required by Buyer: A Buyer of Property enrolled in the Clean and Green Program must submit notice of any proposed changes Buyer intends to make in the use of the Property being purchased to the County Assessor at least 30 days prior to undertaking any changes. Loss of Preferential Tax Assessment: The sale of Property enrolled in the Clean and Green Program may result in the loss of program enrollment and the loss of preferential tax assessment for the Property and/or the land of which it is a part and from which it is being sepazated. Removal from enrollment in the Clean and Green Program may result in the charge of roll-back taxes and interest. Aroll-back tax is the difference in the amount of taxes paid under the program and the taxes that would have been paid in the absence of Clean and Green enrollment. The roll-back taxes are charged for each year that the Property was enrolled in the program, limited to the past 7 years. Buyer and Seller have been advised of the need to determine the tax implications that will or may result from the sale of the Property to Buyer or that may result in the future as a result in any change in use of the Property or the land from which it is being separated by contacting the County Tax Assessment Office before the execution of this Agreement of Sale. OPEN SPACE ACT 32 P.S. §5001 et seq. This Act enables counties to enter into covenants with owners of land designated as farm, forest, water supply, or open space land on an adopted municipal, county or regional plan for the purpose of preserving the land as open space. A covenant between the owner and county is binding upon any Buyer of the Property during the period of time that the covenant is in effect (5 or 10 yeazs). Covenants automatically renew at the end of the covenant period unless specific termination notice procedures are followed. Buyer acknowledges that the purchase of Property for which there is a covenant will not extinguish the covenant and that a change in the use of the land to any other use other than that designated in the covenant will constitute a breach. When a breach of the covenant occurs, the then-owner is required to pay roll-back taxes and interest. Aroll-back tax is the difference in the amount of taxes paid and the taxes that would have been paid in the absence of the covenant. The roll-back taxes aze charged for each year that the Property was subject to the covenant, limited to the past 5 years. Buyer has been advised of the need to determine the restrictions that will apply from the sale of the Property to Buyer and the tax implications that will ormay result from a change in use of the Property, or any portion of it. Buyer is further advised to determine the term of any covenant now in effect. PREPARED BY: Robert C. Saidis, ASR .Pennsylvania Association of REALTORS® Revised 1/10 COPYRIGHT PENNSYLVANIA ASSOCIATION OF REALTORS® 2010 ReaIFA$T®Software, ®2011, Version 6.16. Software Registered to: Robert C. Saidis, Saidis, Sullivan ~ Rogers Buyer(s) Initials: J~~~ {~~ 09/02/11 10:03:41 ~~ Gv?_i 4 of 19 Seller(s) Initials: NOTICES REGARDING PROPERTY & ENVIRONMENTAL INSPECTIONS (Paragraph 11: Inspections) Exterior Insulation and Finish Systems (EIFS): Exterior Insulation and Finish Systems -sometimes referred to as synthetic stucco -are multi-layered wall systems applied to the exterior of some homes. Poor or improper installation of EIFS may result in moisture penetrating the surface of a structure where it may cause damage to the building's frame. Leakage most frequently occurs near doors and windows, gutters, the roof connection and at the lowermost edge of the exterior surface. Vulnerability to leakage depends on structure design as well as the expertise and application skills of the contractor. Damage caused by water intrusion may be both extensive and expensive to repair but may go undetected in the absence of an adequate inspection. Buyers purchasing homes with EIFS construction may seek to engage an inspector experienced in testing for EIFS-related problems who can determine the moisture content of the building's frame. Asbestos: The heat resistant and durable nature of asbestos makes it useful in construction. The physical properties that give asbestos its resistance to heat and decay are linked with several adverse health effects. Asbestos can easily break into microscopic fibers that remain suspended in the air for long periods of time. When inhaled, these fibers easily penetrate body tissue. Asbestos is known to cause Asbestosis and various forms of cancer. Inquiries or requests for more information about asbestos can be directed to the U. S. Environmental Protection Agency, Ariel Rios Building, 1200 Pennsylvania Ave., N.W., Washington, D.C. 20460, and/or the Department of Health, Commonwealth of Pennsylvania, Division of Environmental Health, Harrisburg, PA 17120. ElectromagneticFields: Electromagnetic Fields (EMFs) occur around all electrical appliances and power lines. Conclusive evidence that EMFs pose health risks does not exist at present, and Pennsylvania has no laws regarding this issue. EnvironmentalHazards: The U. S. Environmental Protection Agency has a list of hazardous substances, the use and disposal of which are restricted by law. Generally, if hazardous substances are found on a property, it is the property owner's responsibility to dispose of them properly. For more information and a list of hazardous substances, contact the U.S. Environmental Protection Agency Ariel Rios Building, 1200 Pennsylvania Ave., N.W., Washington, D. C. 20460, (202) 260-2090. Wetlands: Wetlands are protected by the federal and state governments. Buyer may wish to hire an environmental engineer to investigate whether the Property is located in a wetlands area to determine if permits for plans to build, improve or develop the property would be affected or denied because of its location in a wetlands area. Mold, Fungi and Indoor Air Quality: Indoor mold contamination and the inhalation of bioaerosols (bacteria, mold spores, pollen and viruses) have been associated with allergic responses including upper respiratory congestion, cough. mucous membrane irritation, fever, chills, muscle ache or other transient inflammation or allergy. Claims have been asserted that exposure to mold contamination and bioaerosols has led to serious infection, immunosuppression and illnesses of neuro or systemic toxicity. Sampling of indoor air quality and other methods exist to determine the presence and scope of indoor contamination. Because individuals may be affected differently, or not affected at all, by the presence of mold or other bioaerosols, Buyer may wish to engage the services of a qualified professional to undertake an assessment and/or sampling of the Property. Assessments and samplings for the presence of mold and bioaerosols can be performed by qualified industrial hygienists, engineers, laboratories and home inspection companies that offer these services. Information about indoor air quality issues is available through the U.S. Environmental Protection Agency and may be obtained by contacting IAQ INFO, P.O. Box 37133, Washington, D.C. 20013-7133, 1-800-438-4318. Radon: Radon is a natural, radioactive gas that is produced in the ground by the normal decay of uranium and radium. Studies indicate that extended exposure to high levels of radon gas can increase the risk of lung cancer. Radon can find its way into any air-space and can permeate a structure. If a house has a radon problem, it usually can be cured by increased ventilation and/or by preventing radon entry. Any person who tests, mitigates or safeguards a building for radon in Pennsylvania must be certified by the Department of Environmental Protection. Information about radon and about certified testing or mitigation firms is available through Department of Environmental Protection, Bureau of Radiation Protection, 13th Floor, Rachel Carson State Office Building, P.O. Box 8469, Harrisburg, PA 17105-8469, (S00) 23RADON or (717) 783-3594. www.epa.gov NOTICES REGARDING RESIDENTIAL LEAD-BASED PAINT HAZARD REDUCTION ACT (Paragraph 11: Inspections) Lead-Based Paint Hazards Disclosure Requirements (for properties built before 1978): The Residential Lead-Based Paint Hazard Reduction Act requires any Seller of property built before 1978 to provide the Buy er with an EPA-approved lead hazards information pamphlet titled Protect Your Family from Lead in Your Home and to disclose to the Buyer and the broker(s) the known presence of lead-based paint and/or lead-based paint hazards in or on the property being sold, along with the basis used for determining that the hazards exist, the location of the hazards, and the condition of painted surfaces. Any Seller of a pre-1978 structure must also provide the Buyer with any records or reports available to the Seller regarding lead-based paint and/or lead-based paint hazards in or about the property being sold, the common areas, or other residential dwellings in multi-family housing. Before a Buyer is obligated to purchase any housing constructed prior to 1978, the Act requires the Seller to give the Buyer 10 days (unless Buyer and Seller agree in writing to another time period) to conduct a risk assessment or inspection for the presence of lead-based paint and/or lead-based paint hazards. The opportunity to conduct a risk assessment or inspection maybe waived by the Buyer, in writing. Neither testing nor abatement is required of the Seller. Housing built in 1978 or later is not subject to the Act. PREPARED BY: Robert C. Saidis, 4SR .Pennsylvania Association of REALTORS® Revised 1/10 COPYRIGHT PENNSYLVANIA ASSOCIATION OF REALTORS® 2010 ReaIFA$T®Software, 02011, Version 6.16. Software Registered to: Robert C. Saidis, Saidis, Sullivan & Rogers ~~~ 09/02/11 10:03:41 Seller(s) Initials: `'~~ ~'" age 15 of 19 3uyer(s) Initials: LEAD WARNING STATEMENT (FOR PROPERTIES BUILT BEFORE 1978) Every purchaser of any interest in residential real property on which a residential dwelling was built prior to 1978 is notified that such property may present exposure to lead from lead-based paint that may place young children at risk of developing lead poisoning. Lead poisoning in young children may produce permanent neurological damage, including learning disabilities, reduced intelligence quotient, behavioral problems, and impaired memory. Lead poisoning also poses a particular risk to pregnant women. The Seller of any interest in residential real property is required to provide the Buyer with any information on lead-based paint hazards from risk assessments or inspections in the Seller's possession and notify the Buyer of any known lead-based paint hazards. A risk assessment or inspection for possible lead-based paint hazards is recommended prior to purchase. NOTICE REGARDING THE HOME INSPECTION LAW (68 Pa. C.S.A. § 7501, et. seq.) (Paragraph 11: Inspections) Applicability: The Home Inspection Law applies to "residential real estate transfers," defined as a sate, exchange, installment sales contract, lease with an option to buy, grant or other transfer of an interest in real property where NOT LESS THAN ONE AND NOT MORE THAN FOUR RESIDENTIAL DWELLING UNITS are involved. (See Notice Regarding The Real Estate Seller Disclosure Law (exceptions 1-8) for a list of exceptions to this general rule.) The following definitions are taken from the text of the Home Inspection Law Home Inspection: A noninvasive, visual examination of some combination of the mechanical, electrical or plumbing systems or the structural and essential components of a residential dwelling designed to identify material defects in those systems and components, and performed for a fee in connection with or preparation for a proposed or possible residential real estate transfer. The term also includes anyconsultationregsrding the property that is represented to be a home inspection or that is described by any confusingly similar term. The term does not include an examination of a single system or component of a residential dwelling such as, for example, its electrical or plumbing system or its roof. The term also does not include an examination that is limited to inspection for, or of, one or more of the following: wood-destroying insects, underground tanks and wells, septic systems, swimming pools and spas, alarm systems, air and water quality, tennis courts and playground equipment, pollutants, toxic chemicals and environmental hazards. The scope of a home inspection, the services to be performed and the systems and conditions to be inspected or excluded from inspection maybe defined by a contract between the home inspector and the client. Home inspection report: A written report on the results of a home inspection. A home inspection report shall include: (1) A description of the scope ofthe inspection, including without limitation an identification ofthe structural elements, systems and subsystems covered by the report. (2) A description of any material defects noted during the inspection, along with any recommendation that certain experts be retained to determine the extent of the defects and any corrective action that should be taken. A "material defect" that poses an unreasonable risk to people on the property shall be conspicuously identified as such. A home inspector shall not express either orally or in writing an estimate ofthe cost to repair any defect found during a home inspection, except that such an estimate may be included in a home inspection report if: (1) the report identifies the source of the estimate; (2) the estimate is stated as a range of costs; and (3) the report states that the parties should consider obtaining an estimate from a contractorwho performs the type of repair involved. Seller shal i have the right, upon request, to receive without charge a copy of any inspection report from the party for whom it was prepared. Home inspector: An individual who performs a home inspection. National home inspectors association: Any national association ofhome inspectors that: (1) Is operated on snot-for-profit basis and is not operated as a franchise. (2) Has members in more than ten states. (3) Requires that a person may not become a full member unless the person has performed or participated in more than 100 home inspections and has passed a recognized or accredited examination testing knowledge of the proper procedures for conducting a home inspection. (4) Requires that its members comply with a code of conduct and attend continuing professional education classes as an ongoing condition of membership. A Buyer shall be entitled to rely in good faith, without independent investigation, on a written representation by a home inspector that the home inspector is a full member in good standing of a national home inspection association. Material defect: A problem with a residential real property or any portion of it that would have a significant adverse impact on the value of the property or that involves an unreasonable risk to people on the property. The fact that a structural element, system or subsystem is near, at or beyond the end of the normal useful life of such a structural element, system or subsystem is not by itself a material defect. PREPARED BY: Robert C. Saidis, ASR .Pennsylvania Association of REALTORS® Revised 1/10 COPYRIGHT PENNSYLVANIA ASSOCIATION OF REALTORS® 2010 ReaIFA$T®Software, ®2011, Version 6.16. Software Registered to: Robert C. Saidis, Saidis, Sullivan & Rogers Buyer(s) Initials:`"~~r+~_~ 09/02/11 10:03:41 age 16 of 19 Seller(s) Initials:~~~ ~- ,_ NOTICES REGARDING CONDOMINIUMS AND PLANNED COMMUNITIES (Paragraph 14: Condominium/Planned Community (Homeowner Association) Resale Notice) Definition of a Condominium The Uniform Condominium Act defines a "condominium" as real estate, portions of which are designated for separate ownership and the remainder of which is designated for common ownership solely by the owners of those portions. Real estate is not a condominium unless the undivided interests in the common elements are vested in the unit owners. Definition of a Planned Community The Uniform Planned Community Act defines a "planned community" as real estate with respect to which a person, by virtue of ownership of an interest in any portion of the real estate, is or may become obligated by covenant, easement or agreement imposed on the owner's interest to pay any amount for real property taxes, insurance, maintenance, repair, improvement, management, administration or regulation of any part of the real estate other than the portion or interest owned solely by the person. The term excludes a cooperative and a condominium, but a cooperative or condominium may be part of a planned community. For the pwposes of this definition, "ownership" includes holding a leasehold interest of more than 20 years, including renewal options, in real estate. The term includes non-residential campground communities. Exemptions from the Uniform Planned Community Act and the Uniform Condominium Act: When a Certificate of Resale Is Not Required The owner of a property located within a planned community is not required to famish the buyer with a certificate of resale under the following circumstances: (1) The Planned Community/Condominium contains no more than 12 units, provided there is no possibility of adding real estate or subdividing units to increase the size of the Planned Community. (2) The Planned Community/Condominium is one in which all of the units are restricted exclusivelytonon-residential use, unless the declaration provides that the resale provisions are nevertheless to be followed. (3) The Planned Community/Condominium or units are located outside the Commonwealth of Pennsylvania. (4) The transfer of the unit is a gratuitous transfer. (5) The transfer of the unit is required by court order. (6) The transfer of the unit is bythe government or a governmental agency. (7) The transfer of the unit is the result of forecloswe or in lieu of foreclosure. Notices Regarding Public Offering Statements and Right to Rescission If Seller is a Declarant of the condominium or planned community, Seller is required to furnish Buyer with a copy of the Public Offering Statement and its amendments. For condominiums, the delivery of the Public Offering Statement must be made no later than the date the buyer executes this Agreement. Buyer may cancel this Agreement within 15 days after receiving the Public Offering Statement and any amendments that materially and adversely affect Buyer. For planned communities, the Declarant must provide the Buyer with a copy of the Public Offering Statement and its amendments no later than the date the Buyer executes this Agreement. Buyer may cancel this Agreement within 7 days after receiving the Public Offering Statement and any amendments that materially and adversely affect Buyer. NOTICES REGARDING RECREATIONAL CABINS (Paragraph 15: Title, Surveys & Costs) The following definitions and requirements are taken from the Pennsylvania Construction Code Act (35 P.S. §7210.101 et. seq.) A Recreational Cabin is a structure which is: (1) Utilized principally forrecreational activity; (2) Not utilized as a domicile or residence for any individual for any time period; (3) Not utilized for commercial pwposes; (4) Not greater than two stories in height, excluding basement; (5) Not utilized bythe owner or any other person as a place of employment; (6) Not a mailing address for bills and correspondence; and (7) Not listed as an individual's place of residence on a tax return, driver's license, car registration or voter registration. A recreational cabin may be exempt from the provisions of the Pennsylvania Construction Code Act if: (1) The cabin is equipped with at least one smoke detector, one fire extinguisher and one carbon monoxide detector in both the kitchen and sleeping quarters; and (2) The owner of the cabin files with the municipality either: (a) An affidavit on a form prescribed by the Pennsylvania Department of Labor and Industry attesting to the fact that the cabin meets the definition of a "recreational cabin" in Section 103 of the Act; or (b) A valid proof of insurance for the recreational cabin, written and issued by an inswer authorized to do business in this Commonwealth, stating that the structure meets the definition of a "recreational cabin" as defined in Section 103 of the Act. If a recreational cabin is subject to exclusion from the Pennsylvania Construction Code Act, upon transfer of ownership of the recreational cabin, written notice must be provided in the sales agreement and the deed that the recreational cabin: (1) Is exempt from this Act; (2) May not be in conformance with the uniform construction code; and (3) Is not subject to municipal regulation. Failure to comply with this notice requirement shall render the sale voidable at the option of the purchaser. PREPARED BY: Robert C. Saidis, 4SR .Pennsylvania Association of REALTORS® Revised 1/10 COPYRIGHT PENNSYLVANIA ASSOCIATION OF REALTORS® 2010 ReaIFA$T®SoftwAAare, ©2011, Version 6.16. Software Registered to: Robert C. Saidis, Saidis, Sullivan 8 Rogers 3uyer(s) Initials: V~~ 09/02/11 10:03:41 ~~ `` Page 17 of 19 Seller(s) Initials~^/~~ ]~w.u4 NOTICES REGARDING MEDIATION (Paragraph 23: Mediation) HOME SELLERS/HOME BUYERS DISPUTE RESOLUTION SYSTEM RULES AND PROCEDURES 1. Agreement of Parties The Rules and Procedures of the Dispute Resolution System (DRS) apply when the parties have agreed in writing to mediate under DRS. The written agreement can be achieved by a standard clause in an agreement of sale, an addendum to an agreement of sale, or through a separate written agreement. 2. Initiation of Mediation If a dispute exists, any party may start the mediation process by submitting a completed Request to Initiate Mediation DRS Transmittal Form (Transmittal Form) to the local Association of REALTORS® (hereafter "Administrator"). The Transmittal Form should be available through the Administrator's office. The initiating party should try to include the following information when sending the completed Transmittal Form to the Administrator: a. A copy of the written agreement to mediate if there is one, OR a request by the initiating party to have the Administrator contact the other parties tothe dispute to invite them to join the mediation process. b. The names, addresses and telephone numbers of the parties involved in the dispute, including the name of every insurance company known to have received notice of the dispute or claim and the corresponding file or claim number. c. A briefstatement of the facts of the dispute and the damages or relief sought. 3. Selection of Mediator Within five days of receiving the completed Transmittal Form, the Administrator will send each party to the dispute a copy of the Transmittal Form and a list of qualified mediators and their fee schedules. Each party then has ten days to review the list of mediators, cross off the name of any mediator to whom the party objects, and return the list to the Administrator. The Administrator will appoint the first available mediator who is acceptable to all parties involved. A mediator who has any financial or personal interest in the dispute or the results of the mediation cannot serve as mediator to that dispute, unless all parties are informed and give their written consent. 4. Mediation Fees Mediation fees will be divided equally among the parties and will be paid before the mediation conference. The parties will follow the payment terms contained in the mediator's fee schedule. 5. Time and Place of Mediation Conference Within ten days ofbeing appointed to the dispute, the mediator will contact the parties and set the date, time and place of the mediation conference. The mediator must give at least twenty days' advance notice to all parties. The mediation conference should not be more than sixty days from the mediator's appointment to the dispute. 6. Conduct of Mediation Conference The parties attending the mediation conference will be expected to: a. Have the authority to enter into and sign a binding settlement to the dispute. b Produce all information required for the mediator to understand the issues of the dispute. The information may include relevant written materials, descriptions of witnesses and the content of their testimony. The mediator can require the parties to deliver written materials and information before the date ofthe mediation conference. The mediator presiding over the conference: a Will impartially conduct an orderlysettlementngigotiation. b. Will help the parties define the matters in dispute and reach a mutually agreeable solution. c. Will have no authority to render an opinion, to bind the parties to his or her decision, or to force the parties to reach a settlement. Formal rules of evidence will not apply to the mediation inference. 7. Representation by Counsel Any party who intends to be accompanied to the mediation conference bylegal counsel will notify the mediator and the other parties of the intent at least ten days before the conference. 8. Confidentiality No aspect of the mediation can be relied upon or introduced as evidence in any arbitration, judicial or other proceeding. This includes, but is not limited to, any opinions or suggestions made by any party regarding a possible settlement; any admissions made during the course of the mediation; any proposals or opinions expressed by the mediator; and any responses given by any party to opinions, suggestions, or proposals. No privilege will be affected by disclosures made in the course of the mediation. Transcripts or recordings of the mediation will not be allowed without the prior, written consent ofall parties and the mediator. Records, reports, and other documents received or prepared by the mediator or Administrator cannot be compelled by an arbitration, judicial, or other proceeding, with the exception of an agreement that was reached in the course of mediation and signed by all the parties. Neither the mediator nor the Administrator can be compelled to testify in any proceeding regarding information given or representations made either in the course ofthe mediation or in any confidential communication. 9. Mediated Settlement When a dispute is resolved through mediation, the mediator will put the complete agreement in writing and all parties will sign the written agreement within ten days of the conclusion of the mediation conference. Every reasonable effort will be made to sign the written agreement at the end of the conference. 10. Judicial Proceedings and Immunity NEITHER THE ADMINISTRATOR, THE MEDIATOR, THE NATIONAL ASSOCIATION OF REALTORS®, THE PENNSYLVANIA ASSOCIATION OF REALTORS, NOR ANY OF TI'S MEMBER BOARDS, WII.L BE DEEMED NECESSARY OR INDISPENSABLE PARTIES IN ANY JUDICIAL PROCEEDINGS RELATING TO MEDIATION UNDER THESE RULES AND PROCEDURES, NOR WII.L ANY OF THEM SERVING UNDER THESE PROCEDURES BE LIABLE TO ANY PARTY FOR ANY ACT, ERROR OR OMISSION IN CONNECTION WITH ANY SERVICE OR THE OPERATION OF THE HOME SELLERS/HOME BUYERS DISPUTE RESOLUTIONSYSTEM. PREPARED BY: Robert C. Saidis, ASR .Pennsylvania Association of REALTORS® Revised 1110 COPYRIGHT PENNSYLVANIA ASSOCIATION OF REALTORS® 2010 ReaIFA$T® Softwta~~re//,//0xr2011, Version 6.16. Software Registered to: Robert C. Saidis, Saidis, Sullivan 8 Rogers Buyer(s) Initials:TJUI~~~j 09/02/11 10:03:41 t ~~ h Page 18 of 19 Seller(s) Initials: ,w.x NOTICES REGARDING THE REAL ESTATE SELLER DISCLOSURE LAW (Page 11: Signature Page) The Real Estate Seller Disclosure Law requires that before an agreement of sale is signed, the Seller in a residential real estate transfer must make certain disclosures regarding the property to potential Buyers in a fonn defined by the law. A residential real estate transfer is defined as a sale, exchange, installment sales contract, lease with an option to buy, grant or other transfer of an interest in real property where NOT LESS THAN ONE AND NOT MORE THAN FOUR RESIDENTIAL DWELLING UNITS are involved. The Law defines a number of exceptions where the disclosures do not have to be made: 1. Transfers that are the result ofa court order. 2. Transfers to a mortgage lender that result from a Buyer's default and subsequent foreclosure sales that result from default. 3. Transfers from a co-owner to one or more other co-owners. 4. Transfers made to a spouse or direct descendant. 5. Transfers between spouses that result from divorce, legal separation or property settlement. 6. Transfers by a corporation, partnership or other association to its shareholders, partners or other equity owners as pazt of a plan of liquidation. 7. Transfer of a property to be demolished or converted tonon-residential use. 8. Transfer of unimproved real property. 9. Transfers by a fiduciary during the administration of a decedent estate, guardianship, conservatorship or trust. 10. Transfers ofnew construction that has never been occupied when: a. The Buyer has received aone-year warranty covering the construction; b. The building has been inspected for compliance with the applicable building code or, if none, a nationally recognized model building code; and c. A certificate ofoccupancy or a certificate of code compliance has been issued for the dwelling. In addition to these exceptions, disclosures for condominiums and cooperatives are limited to the Seller's particular unit(s). Disclosures regarding common areas or facilities are not required, as those elements are already addressed in the laws that govern the resale of condominium and cooperative interests. PREPARED BY: Robert C. Sa1dls, 4SR .Pennsylvania Association of REALTORS® devised 1/10 COPYRIGHT PENNSYLVANIA ASSOCIATION OF REALTORS® 2010 ~eaIFA$T® Softwa/r/e,,®12011, Ver~ 6.16. Software Registered to: Robert C. Saidis, Saidis, Sullivan & Rogers 3uyer(s) Initials~W /~'~ 09/02/11 10:03:41 Seller(s) Initials:~~Page 19 of 19 ADDENDUM/ENDORSEMENT TO AGREEMENT OF SALE 1 2 3 4 5 6 7 8 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 ASA PROPERTY 431 West North Street Carlisle PA 17013 SELLER Manufacturers & Traders Trust Co. BUYER Jack W Ziegler Darlene K Ziegler DATE OF AGREEMENT Oatober 5 2011 Addendum to the Standard Agreement for the Sale of Real Estate of October 5, 2011 1. Settlement shall occur on or b®f ore August 31, 2012. 2. Seller hereby assigns any and all rights, whether arising by reason of insuranoe or otherwise for hail damage, insulation or other claim, to Buyer. This provision shall survive settlement. 3. Buyer shall deposit fifty thousand ($50,000.00) dollars with Seller, at the time of signing this Addendum. 4. This Agreement is not contingent upon mortgage financing. All other terms and Agreement of Sale remain unchanged and in full force and effect. pL24 BUYER owt /fli'~~~C''~`'' - BUYER WTTNESS BUYER WITNESS ~ ~'`~ SELLER WITNESS SELLER WITNESS DATE ~! ~ ~~~ DATE l plc DATE .~ = u2. ~ PDA 2 0! 2 Man acturers & Traders t DATE SELLER DATE Penhsylvanis Association of COPYRIGHT PENNSYLVANIA ASSOCIATION OF REALTORS® 1993 REALTORS® slot • T11~V~N~NfM~IiNNN NIMnryN~N~ Saidis, Sullivan & Rogers 26 West High Street Carlisle, PA 17013 Phone: (717)243-6222 Fax: (717)243-6510 Robert Saidis M&T to Ziegler Produced with ZlpForrn® by zipLOgix 18070 Fifteen Mite Road, Fraser, Michigan 48028 www.zipLogix.com Exhibit "C" Consent of Beneficiary Estate of Anna C. Ziegler The undersigned, an heir of Anna C. Ziegler, hereby consents and agrees to the sale of the property located at 431 West North Street, Carlisle, Cumberland County, Pennsylvania for one hundred fifty thousand ($150,000.00) dollars to Jack W. Ziegler, Co-Executor, and his wife, Darlene K. Ziegler. Date ~~~eZ ~~~ David F. Ziegler ~ AUG 1 4 2012 Exhibit "D" Consent of Beneficiary Estate of Anna C. Ziegler The undersigned, an heir of Anna C. Ziegler, hereby consents and agrees to the sale of the property located at 431 West North Street, Carlisle, Cumberland County, Pennsylvania for one hundred fifty thousand ($150,000.00) dollars to Jack W. Ziegler, Co-Executor, and his wife, Darlene K. Ziegler. Date ~ ~ ~ ~~.~_ p Carole L. Rish "t-~2