EXHIBIT 10.01
STATE OF ALABAMA
COUNTY OF MARION
SALES CONTRACT
The Undersigned Purchaser Deer Valley Homebuilders, Inc., an Alabama
corporation, hereby agrees to purchase and the Undersigned Seller Steve Logan
hereby agrees to sell the following described real estate, together with all
improvements, shrubbery, plantings, fixtures and appurtenances, situated in the
City of Sulligent, County of Lamar, Alabama, on the terms stated below:
(Legal Description attached hereto as Exhibit "A.")
1. The cash consideration for this purchase shall be $725,000 firm. Cash on
closing this sale shall be $5,000. The cash consideration shall be paid as
follows:
(a) First mortgage of approximately $610,000 with monthly installments
of approximately ________________ including principal and interest shall be
assumed by Purchaser subject to Mortgagee's approval if required.
(b) The remaining $115,000 shall be paid directly to the Seller in
$5,000/month increments for twenty-three months.
2. Proration: It is understood and agreed that this contract represents a
purchase of the above-described property and that there shall be no prorations
at closing for taxes, insurance, interest or mortgage insurance, except as
hereinafter provided.
3. Escrow Account: The Seller agrees to assign the escrow account, if any,
to the Purchaser and to transfer the existing insurance policy to the Purchaser.
Seller also warrants that, at time of closing, there will be sufficient funds in
the escrow account to cover any necessary deposits required by the Mortgagee and
any reported surplus shall be credited to the Seller. If there is no escrow
account for taxes and/or insurance, then such unescrowed items shall be prorated
as of the date of closing.
4. The mortgage transfer fee, if any, and deed recording cost will be paid
by the Purchaser.
5. Title insurance: The seller agrees to furnish the Purchaser a standard
form title insurance policy, issued by a company qualified to insure titles in
Alabama, in the amount of the purchase price, insuring the Purchaser against
loss on account of any defect or encumbrance in title, unless herein excepted;
otherwise, the earnest money shall be refunded. In the event both Owner's and
Mortgagee's title policies are obtained at the time of closing, the total
expense of procuring the two policies will be divided equally between the Seller
and the Purchaser provided the Mortgagee is not the Seller. Said property is
sold and is to he conveyed subject to any mineral and mining rights not owned by
the undersigned Seller and subject to present zoning classification, and mining
rights not owned by the undersigned Seller and subject to present zoning
classifications.
6. Hazard insurance: The Seller will keep in force sufficient hazard
insurance on the property to protect all interests until this sale is closed and
the deed delivered.
7. Closing & possession dates: The sale shall be closed and the deed
delivered on or before April 30, 2006 except the Seller shall have a reasonable
length of time with which to prefect title or cure defects in the title to the
said property. Possession is to be given on delivery of the deed, if the
property is then vacant; otherwise possession shall be delivered 10 days after
delivery of the deed.
8. Conveyance: The Seller agrees to convey said property to the Purchaser
by statutory warranty deed free of all encumbrances, except as hereinabove set
out and Seller and Purchaser agree that any encumbrances not herein excepted or
assumed may be cleared at the time of closing from sales proceeds.
9. Condition of property: Seller agrees to deliver the heating, cooling,
plumbing and electrical systems and any built-in appliances in operable
condition at the time of closing. It shall be the responsibility of the
Purchaser, at Purchaser's expense, to satisfy himself that all conditions of
this contract are satisfied before closing. After closing, all conditions of the
property, as well as any aforementioned items and systems, are the
responsibility of the Purchaser.
10. Seller warrants that he has not received notification from any lawful
authority regarding any assessments, pending public improvements, repairs,
replacements, or alterations to said premises that have not been satisfactorily
made. The Seller warrants that there is no unpaid indebtedness on the subject
property except as described in this contract. These warranties shall survive
the delivery of the above deed.
11. Additional provisions set forth on reverse side, initialed by all
parties, are hereby made a party of this contract and this contract states the
entire agreement between the parties and merges in this agreement all
statements, representations, and covenants heretofore made, and any agreements
not incorporated herein are void and of no force and effect.
/s/ Joel Logan
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Purchaser
/s/ Steve Lawler
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Witness
/s/ Steve J. Logan
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Seller Steve J. Logan
/s/ Nancy Logan
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Witness
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Receipt is hereby acknowledged of the earnest money as hereinabove set
forth:
Cash X Check -- $5,000 1st payment.
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FIRM:
By:
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