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Contract Of Sale - Office Commercial And Multi Family Residential Premises (Long Form) Form. This is a New York form and can be use in Real Estate Statewide.
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CONTRACT OF SALE – OFFICE, COMMERCIAL AND MULTI-FAMILY RESIDENTIAL
PREMISES. This form was originally prepared by the Committee on Real Property Law of the
Association of the Bar of the City of New York. This form may have been altered by the user and
any such alterations may not be apparent. To view or download the original unaltered text of this
form and an introduction to this form, visit the Real Estate Forms site at the Reports/Publications/
Forms link at www.nycbar.org.
Contract of Sale – Office, Commercial and Multi-Family Residential Premises
Between
___________________________________________ (“Seller”)
and
___________________________________________ (“Purchaser”)
dated _____________
Premises:
Street Address:
City or Town:
County:
State:
New York
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Table of Contents
Section 1.
Sale of Premises and Acceptable Title.........................................................1
Section 2.
Purchase Price, Acceptable Funds, Existing Mortgages,
Purchase Money Mortgage, Escrow of Downpayment and
Foreign Persons............................................................................................2
Section 3.
The Closing..................................................................................................7
Section 4.
Representations and Warranties of Seller ....................................................7
Section 5.
“As Is” Condition, No Representations Not Expressly Set
Out in Contract, Representations and Warranties of
Purchaser....................................................................................................12
Section 6.
Seller’s Obligations as to Leases ...............................................................14
Section 7.
Responsibility for Violations .....................................................................16
Section 8.
Destruction, Damage or Condemnation.....................................................17
Section 9.
Covenants of Seller ....................................................................................19
Section 10.
Seller’s Closing Obligations ......................................................................19
Section 11.
Purchaser’s Closing Obligations................................................................22
Section 12.
Apportionments..........................................................................................23
Section 13.
Objections to Title, Failure of Seller or Purchaser to Perform
and Vendee’s Lien .....................................................................................25
Section 14.
Broker ........................................................................................................26
Section 15.
Notices .......................................................................................................27
Section 16.
Limitations on Survival of Representations, Warranties,
Covenants and other Obligations ...............................................................27
Section 17.
Due Diligence Period.................................................................................27
Section 18.
Miscellaneous Provisions ..........................................................................29
SCHEDULES
Schedule A.
DESCRIPTION OF PREMISES ............................................................ A-1
Schedule B.
PERMITTED EXCEPTIONS..................................................................B-1
Schedule C.
PURCHASE PRICE ................................................................................C-1
Schedule D.
MISCELLANEOUS ............................................................................... D-1
Schedule E.
RENT SCHEDULE .................................................................................E-1
Schedule F.
FORM OF ESTOPPEL LETTER............................................................ F-1
Schedule G.
INSURANCE POLICIES ....................................................................... G-1
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Schedule H.
EMPLOYEES ......................................................................................... H-1
Schedule I.
SERVICE CONTRACTS .........................................................................I-1
Schedule J.
CERTIFICATE OF OCCUPANCY .........................................................J-1
Schedule K.
FORMS OF PURCHASE MONEY NOTE AND MORTGAGE .......... K-1
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Contract of Sale -- Office, Commercial and Multi-Family Residential Premises
CONTRACT OF SALE (“Contract”) dated _______________ between
___________________________ (“Seller”) and _____________________________
(“Purchaser”).
Seller and Purchaser hereby covenant and agree as follows:
Section 1.
Sale of Premises and Acceptable Title
§1.01. Seller shall sell to Purchaser, and Purchaser shall purchase from Seller, at
the price and upon the terms and conditions set forth in this contract: (a) the parcel of land
more particularly described in Schedule A attached hereto (“Land”); (b) all buildings and
improvements situated on the Land (collectively, “Building”); (c) all right, title and interest
of Seller, if any, in and to the land lying in the bed of any street or highway in front of or
adjoining the Land to the center line thereof and to any unpaid award for any taking by
condemnation or any damage to the Land by reason of a change of grade of any street or
highway; and (d) the appurtenances and all the estate and rights of Seller in and to the Land
and Building (collectively, the “Premises”).
For purposes of this contract,
“appurtenances” shall include all right, title and interest of Seller, if any, in and to (i) streets,
easements, rights-of-way and vehicle parking rights used in connection with the Premises;
(ii) any strips or gores of land between the Land and abutting or adjacent properties; (iii)
the leases, licenses and occupancy agreements for space in the Building, and all guarantees
thereof, as shown on Schedule E attached hereto and any leases entered into by Seller
between the date of this contract and the Closing (as hereinafter defined); (iv) the Service
Contracts (as hereinafter defined); (v) plans, specifications, architectural and engineering
drawings, prints, surveys, soil and substrata studies relating to the Premises in Seller’s
possession, whether or not stored, managed or contained on computer software or
hardware; (vi) all operating manuals and books, data and records regarding the Premises
and its component systems in Seller’s possession; (vii) all licenses, permits, certificates of
occupancy and other approvals issued by any state, federal or local authority relating to the
use, maintenance or operation of the Premises or the fixtures, machinery or equipment
included in this sale to the extent that they may be transferred or assigned; (viii) all
warranties or guaranties, if any, applicable to the Premises, to the extent such warranties or
guaranties are assignable; (ix) all tradenames, trademarks, servicemarks, logos, copyrights
and good will relating to or used in connection with the operation of the Premises and
(x) air rights and development rights. This sale also includes all trade fixtures and all
equipment, machinery, materials, supplies and other personal property attached or
appurtenant to the Building or located at and used in the operation or maintenance of the
Land or Building to the extent same are owned by Seller or any affiliate of Seller (the
“Personal Property”). The street address of the Premises is set forth on Schedule D
attached hereto.
§1.02. Seller shall convey and Purchaser shall accept fee simple title to the
Premises in accordance with the terms of this contract, subject only to: (a) the matters set
forth in Schedule B attached hereto (collectively, “Permitted Exceptions”); and (b) such
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other matters as the title insurer specified in Schedule D attached hereto (or if none is so
specified, then any title insurer licensed to do business by the State of New York) shall be
willing to omit as exceptions to coverage or to except with insurance against collection out
of or enforcement against the Premises.
Section 2.
Purchase Price, Acceptable Funds, Existing Mortgages, Purchase
Money Mortgage, Escrow of Downpayment and Foreign Persons
§2.01. Purchaser shall pay Seller the purchase price (“Purchase Price”) set forth
in Schedule C attached hereto, subject to the terms and conditions of this contract. Seller
and Purchaser acknowledge that no portion of the Purchase Price is allocated to the
Personal Property, if any, transferred pursuant to this contract.
§2.02. Except for the Downpayment (hereinafter defined), all monies payable
under this contract, unless otherwise specified in this contract, shall be paid by (a) certified
checks of Purchaser or any person making a loan to Purchaser drawn on any bank or trust
company having a banking office in the City of New York and which is a member of the
New York Clearing House Association or (b) official bank checks drawn by any such
banking institution, except that uncertified checks of Purchaser payable to the order of
Seller up to the amount of $2,500 shall be acceptable for sums payable to Seller at the
Closing, or (c) with respect to the portion of the Purchase Price payable at the Closing, at
Seller’s election, by wire transfer of immediately available federal funds to an account
designated by Seller not less than three business days prior to the Closing.
§2.03. (a) If Schedule C provides for the acceptance of title by Purchaser subject
to one or more existing mortgages (collectively, “Existing Mortgage(s)”), the amounts
specified in Schedule C with reference thereto may be approximate and the following shall
apply:
(i)
If at the Closing the aggregate principal amount of the Existing
Mortgage(s), as reduced by payments required thereunder prior to the Closing, is less than
the aggregate amount of the Existing Mortgage(s) as specified in Schedule C, the
difference shall be added to the monies payable by Purchaser at the Closing, unless
otherwise expressly provided herein.
(ii)
If any of the documents constituting the Existing Mortgage(s) or the
note(s) secured thereby prohibits or restricts the conveyance of the Premises or any part
thereof without the prior consent of the holder or holders thereof (“Mortgagee(s)”) or
confers upon the Mortgagee(s) the right to accelerate payment of the indebtedness or to
change the terms of the Existing Mortgage(s) if a conveyance is made without consent of
the Mortgagee(s), Seller shall notify such Mortgagee(s) of the proposed conveyance to
Purchaser within 10 days after execution and delivery of this contract, requesting the
consent of such Mortgagee(s) thereto. Seller and Purchaser shall furnish the Mortgagee(s)
with such information as may reasonably be required in connection with such request and
shall otherwise cooperate with such Mortgagee(s) and with each other in an effort
expeditiously to procure such consent, but neither shall be obligated to make any payment
to obtain such consent. If such Mortgagee(s) shall fail or refuse to grant such consent in
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writing on or before the closing date specified in Schedule D or shall require as a condition
of the granting of such consent (i) that additional consideration be paid to the Mortgagee(s)
and neither Seller nor Purchaser is willing to pay such additional consideration or (ii) that
the terms of the Existing Mortgage(s) be changed and Purchaser is unwilling to accept such
change(s), then unless Seller and Purchaser mutually agree to extend such date or
otherwise modify the terms of this contract, either Purchaser or Seller may terminate this
contract by notice given to the other party within five business days after notice of such
Mortgagee’s decision. If either Purchaser or Seller terminates this contract pursuant to this
§2.03(b), such termination shall be subject to the provisions of §13.07.
§2.04. Even if Schedule C does not provide for the acceptance of title by
Purchaser subject to one or more Existing Mortgages, Seller shall, upon request of
Purchaser, use commercially reasonable efforts to cause the holder(s) of the existing
mortgage(s) encumbering the Premises to assign it (them) to Purchaser’s lender at Closing,
and to deliver to Purchaser’s lender the original mortgage(s) and the original promissory
note(s) secured thereby and Purchaser shall pay any and all costs in connection therewith.
The amount paid by Purchaser (or its lender) to the holder(s) of such existing mortgage(s)
as payment for the assignment of such mortgage(s) shall be deemed a payment on account
of the Purchase Price.
§2.05. (a) If Schedule C provides for payment of a portion of the Purchase Price
by execution and delivery to Seller of a note secured by a purchase money mortgage
(“Purchase Money Mortgage”), such note and Purchase Money Mortgage shall be
substantially in the forms attached hereto as Schedule K. At the Closing, Purchaser shall
pay the mortgage recording tax and recording fees therefor, the filing fees for any financing
statements delivered in connection therewith and the fees of Seller’s attorney for preparing
the note and Purchase Money Mortgage (to the extent such attorneys’ fees do not exceed
$___________).
(b)
If Schedule C provides for the acceptance of title by Purchaser subject to
Existing Mortgage(s) prior in lien to the Purchase Money Mortgage, the Purchase Money
Mortgage shall provide that it is subject and subordinate to the lien(s) of the Existing
Mortgage(s) and shall be subject and subordinate to any extensions, modifications,
renewals, consolidations, substitutions or replacements thereof (collectively,
“Refinancing” or “Refinanced Mortgage”), provided that (i) the rate of interest payable
under a Refinanced Mortgage shall not be greater than that specified in Schedule D as the
Maximum Interest Rate or, if no Maximum Interest Rate is specified in Schedule D, shall
not be greater than the rate of interest that was payable on the refinanced indebtedness
immediately prior to such Refinancing, and (ii) if the principal amount of the Refinanced
Mortgage plus the principal amount of other Existing Mortgage(s), if any, remaining after
placement of a Refinanced Mortgage exceeds the amount of principal owing and unpaid on
all mortgages on the Premises superior to the Purchase Money Mortgage immediately prior
to the Refinancing, an amount equal to the excess shall be paid at the closing of the
Refinancing to the holder of the Purchase Money Mortgage, without prepayment premium
or other charge, in reduction of principal payments due thereunder in inverse order of
maturity. The Purchase Money Mortgage shall further provide that the holder thereof shall,
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on demand and without charge therefor, execute, acknowledge and deliver any agreement
or agreements reasonably required by the mortgagor to confirm such subordination.
(c)
provisions:
The Purchase Money Mortgage shall contain the following additional
(i)
“The mortgagor or any owner of the mortgaged premises shall have
the right to prepay the entire unpaid indebtedness secured by this mortgage, together with
accrued interest, but without penalty, at any time on or after [insert the day following the
last day of the fiscal year of the mortgagee in which the Closing occurs or, if a Prepayment
Date is specified in Schedule D, the specified Prepayment Date], on not less than 10 days’
written notice to the holder hereof.”
(ii)
“Notwithstanding anything to the contrary contained herein, the
obligation of the mortgagor for the payment of the indebtedness and for the performance of
the terms, covenants and conditions contained herein and in the note secured hereby is
limited solely to recourse against the property secured by this mortgage, and in no event
shall the mortgagor or any principal of the mortgagor, disclosed or undisclosed, be
personally liable for any breach of or default under the note or this mortgage or for any
deficiency resulting from or through any proceedings to foreclose this mortgage, nor shall
any deficiency judgment, money judgment or other personal judgment be sought or entered
against the mortgagor or any principal of the mortgagor, disclosed or undisclosed, but the
foregoing shall not adversely affect the lien of this mortgage or the mortgagee’s right of
foreclosure. Notwithstanding the provisions of this subparagraph (ii), mortgagor shall be
personally liable to mortgagee for losses due to:
(A)
fraud or intentional or willful misrepresentation;
(B)
mortgagor’s misapplication or misappropriation of rents or other
income received by mortgagor after the occurrence of an event of default.
(C)
mortgagor’s misapplication or misappropriation of tenant security
deposits or rents collected more than (1) month in advance;
(D)
the misapplication or the misappropriation of insurance proceeds or
condemnation awards;
(E)
mortgagor’s failure to pay real estate taxes, water charges or sewer
rents (except to the extent that sums sufficient to pay such amounts have been deposited in
escrow with mortgagee pursuant to the terms hereof) but only to the extent that the
mortgaged premises generates sufficient income to pay the same when due;
(F)
any act of intentional waste or arson by mortgagor, or any officer,
director, member or general partner of mortgagor;
(G)
subject to the rights of the holder of any superior mortgage,
mortgagor’s failure following any event of default to deliver to mortgagee on demand all
rents and other income and books and records relating to the mortgaged premises;
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(H)
damage to the mortgaged premises arising from the intentional
misconduct or gross negligence of mortgagor, or any officer, director, member or general
partner of mortgagor.”
(iii) “In addition to performing its obligations under Section 274-a of the
Real Property Law, the mortgagee, if other than one of the institutions listed in Section
274-a, agrees that, within 10 days after written request by the mortgagor, but not more than
twice during any period of 12 consecutive months, it will execute, acknowledge and
deliver without charge a certificate of reduction in recordable form (a) certifying as to (1)
the then unpaid principal balance of the indebtedness secured hereby, (2) the maturity date
thereof, (3) the rate of interest, (4) the last date to which interest has been paid and (5) the
amount of any escrow deposits then held by the mortgagee, and (b) stating, to the actual
knowledge of the mortgagee, whether there are any alleged defaults hereunder and, if so,
specifying the nature thereof.”
(iv)
The additional provisions, if any, specified in a rider hereto.
§2.06. (a) All sums paid on account of the Purchase Price prior to the Closing
(collectively, “Downpayment”) shall be paid by good check or checks drawn to the order
of and delivered to Seller’s attorney or another escrow agent designated in writing by the
parties (“Escrowee”). The Escrowee shall hold the proceeds thereof in escrow in a special
bank account at _____________ located at _____________ (or as otherwise agreed in
writing by Seller, Purchaser and Escrowee) until the Closing or sooner termination of this
contract and shall pay over or apply such proceeds in accordance with the terms of this
section. Escrowee shall hold such proceeds in an interest-bearing account, and such
interest shall be paid to the same party entitled to the Downpayment, and the party
receiving such interest shall pay any income taxes thereon. Escrowee shall not be
responsible for any interest on the Downpayment except as is actually earned, or for the
loss of any interest resulting from the withdrawal of the Downpayment prior to the date
interest is posted thereon or for any loss caused by the failure, suspension, bankruptcy or
dissolution of the institution in which the Downpayment is deposited. The tax
identification numbers of the parties are set forth in Schedule D. Each of the parties, upon
Escrowee’s request, shall promptly furnish to Escrowee a completed and executed Form
W-9, together with such other information as Escrowee shall reasonably require. At the
Closing, such proceeds and the interest thereon, if any, shall be paid by Escrowee to Seller.
If for any reason the Closing does not occur and either party makes a written demand upon
Escrowee for payment of such amount, Escrowee shall give written notice to the other
party of such demand. If Escrowee does not receive a written objection from the other
party to the proposed payment within 10 business days after the giving of such notice,
Escrowee is hereby authorized to make such payment. If Escrowee does receive such
written objection within such 10 day period or if for any other reason Escrowee in good
faith shall elect not to make such payment, Escrowee shall continue to hold such amount
until otherwise directed by written instructions from the parties to this contract or a final
and non-appealable judgment of a court. However, Escrowee shall have the right at any
time to deposit the escrowed proceeds and interest thereon, if any, with the clerk of the
Supreme Court of the county in which the Premises is located. Escrowee shall give written
notice of such deposit to Seller and Purchaser. Upon such deposit Escrowee shall be
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relieved and discharged of all further obligations and responsibilities hereunder. If the
Downpayment is deposited in a money market account, dividends thereon shall be treated,
for purposes of this Section, as interest.
(b)
The parties acknowledge that Escrowee is acting solely as a stakeholder at
their request and for their convenience, that the duties of Escrowee hereunder are purely
ministerial in nature and shall be expressly limited to the safekeeping and disposition of the
Downpayment in accordance with the provisions of this contract, that Escrowee shall not
be deemed to be the agent of either of the parties, and that Escrowee shall not be liable to
either of the parties for any act or omission on its part unless taken or suffered in bad faith,
in willful disregard of this contract or involving gross negligence. Seller and Purchaser
shall jointly and severally indemnify and hold Escrowee harmless from and against all
costs, claims and expenses, including reasonable attorneys’ fees, incurred in connection
with the performance of Escrowee’s duties hereunder, except with respect to actions or
omissions taken or suffered by Escrowee in bad faith, in willful disregard of this contract or
involving gross negligence on the part of Escrowee.
(c)
Escrowee has acknowledged agreement to these provisions by signing in
the place indicated on the signature page of this contract.
(d)
If Escrowee is Seller’s attorney, Escrowee or any member of its firm shall
be permitted to act as counsel for Seller in any dispute as to the disbursement of the
Downpayment or any other dispute between the parties whether or not Escrowee is in
possession of the Downpayment and continues to act as Escrowee.
(e)
Escrowee may act or refrain from acting in respect of any matter referred to
in this §2.06 in full reliance upon and with the advice of counsel which may be selected by
it (including any member of its firm) and shall be fully protected in so acting or refraining
from action upon the advice of such counsel.
§2.07. If Seller is a “foreign person”, as defined in Internal Revenue Code
Section 1445 and regulations issued thereunder (collectively, the “Code Withholding
Section”), or if Seller fails to deliver the certification of non-foreign status required under
§10.01(k), or if Purchaser is not entitled under the Code Withholding Section to rely on
such certification, Purchaser shall deduct and withhold from the Purchase Price a sum
equal to ten percent (10%) thereof and shall at Closing remit the withheld amount with
Forms 8288 and 8288A (or any successor forms) to the Internal Revenue Service; and if
the cash balance of the Purchase Price payable to Seller at the Closing after deduction of
net adjustments, apportionments and credits (if any) to be made or allowed in favor of
Seller at the Closing as herein provided is less than ten percent (10%) of the Purchase Price,
Purchaser shall have the right to terminate this contract. If Purchaser so terminates this
contract, such termination shall be subject to the provisions of §13.07. The right of
termination provided for in this §2.07 shall be in addition to and not in limitation of any
other rights or remedies available to Purchaser under applicable law.
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Section 3.
The Closing
§3.01. Except as otherwise provided in this contract, the closing of title pursuant
to this contract (“Closing”) shall take place on the scheduled date and at the time of closing
specified in Schedule D (the actual date of the Closing being herein referred to as “Closing
Date”) at the place specified in Schedule D.
Section 4.
Representations and Warranties of Seller
Seller represents and warrants to Purchaser as follow:
§4.01. Seller is the sole owner of the Premises and has not granted any option to
purchase the Premises or any right of first refusal or right of first offer to purchase the
Premises.
§4.02. If the Premises are encumbered by an Existing Mortgage(s), no written
notice has been received from the Mortgagee(s) asserting that a default or breach exists
thereunder which remains uncured and no such notice shall have been received and remain
uncured on the Closing Date. If Schedule C provides for the acceptance of title by
Purchaser subject to one or more Existing Mortgages, Seller represents and warrants that
Seller has delivered to Purchaser true and complete copies of the Existing Mortgage(s) and
the promissory notes secured thereby, and that same have not been modified or amended
except as shown in such documents.
§4.03. The information concerning written leases, written licenses and written
occupancy agreements (which together with all amendments and modifications thereof are
collectively referred to as “Leases”) and any tenancies or occupancies in the Premises not
arising out of the Leases (collectively, “Tenancies”; and each, individually, a “Tenancy”)
set forth in Schedule E attached hereto (“Rent Schedule”) is accurate as of the date set forth
therein or, if no date is set forth therein, as of the date hereof, and there are no Leases or
Tenancies of any space in the Premises other than those set forth therein and any subleases
or subtenancies. Except as otherwise set forth in the Rent Schedule or elsewhere in this
contract:
(a)
all of the Leases are in full force and effect;
(b)
none of the Leases has been modified, amended or extended;
(c)
no renewal or extension options or options for additional space have been
granted to tenants, occupants or licensees;
(d)
no tenant, occupant or licensee has an option to purchase the Premises or a
right of first refusal or first offer with respect to a sale of the Premises;
(e)
the rents and fees set forth are being collected on a current basis and there
are no arrearages in excess of one month;
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(f)
no tenant, occupant or licensee is entitled to rental concessions or
abatements for any period subsequent to the scheduled date of Closing, other than an
abatement by reason of a casualty disclosed to Purchaser that occurred after the date of
execution and delivery of this contract;
(g)
Seller has not sent written notice to any tenant, occupant or licensee
claiming that such tenant is in default, which default remains uncured;
(h)
no action or proceeding instituted against Seller by any tenant, occupant or
licensee of all or part of the Premises is presently pending in any court or other tribunal,
except with respect to claims involving personal injury or property damage which are
covered by insurance;
(i)
Schedule;
there are no security deposits other than those set forth in the Rent
(j)
the Rent Schedule accurately sets out all security deposits held by Seller
with respect to the Leases and Tenancies;
(k)
true and complete copies of the Leases have been delivered to Purchaser or
its counsel and initialed by representatives of Purchaser and Seller;
(l)
the tenants, occupants and licensees under the Leases and Tenancies are in
actual possession of the space demised;
(m)
to Seller’s actual knowledge, Seller has performed all of the landlord’s
obligations under the Leases and Tenancies;
(n)
Seller has received no notice(s) of any default of the landlord under the
Leases that remains pending;
(o)
to Seller’s actual knowledge, no action or proceeding, voluntary or
involuntary, is pending against any tenant, licensee or occupant under any bankruptcy or
insolvency act; and
(p)
no leasing commissions are due or owing with respect to any of the Leases
or Tenancies and all leasing commissions have been paid in full with respect to all of the
Leases and Tenancies, except to the extent any brokerage agreements may provide for
payment of a commission in case of any renewal, extension or expansion of space.
If any Leases which have been exhibited to and initialed by Purchaser or its representative
contain provisions that are inconsistent with the foregoing representations and warranties,
such representations and warranties shall be deemed modified to the extent necessary to
eliminate such inconsistency and to conform such representations and warranties to the
provisions of the Leases.
§4.04. If the Premises or any part thereof are subject to the New York City Rent
Stabilization Law, Seller is and on the Closing Date will be a member in good standing of
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the Real Estate Industry Stabilization Association, the rents shown are not in excess of the
maximum collectible rents, and, except as otherwise set forth in the Rent Schedule, no
tenants or occupants are entitled to senior citizen exemptions, there are no proceedings
with any tenant presently pending before the New York State Division of Housing and
Community Renewal in which a tenant has alleged an overcharge of rent or diminution of
services or similar grievance, and there are no outstanding orders or judgments of the
Conciliation and Appeals Board or the New York State Division of Housing and
Community Renewal that have not been complied with by Seller.
§4.05. If the Premises or any part thereof are subject to the New York City
Emergency Rent and Rehabilitation Law, the rents shown are not in excess of the
maximum collectible rents, and, except as otherwise set forth in the Rent Schedule, no
tenants are entitled to exemptions as senior citizens, there are no proceedings presently
pending in which a tenant has alleged an overcharge of rent or diminution of services or
other grievance, and there are no outstanding orders that have not been complied with by
Seller.
§4.06. Schedule G attached hereto lists all insurance policies presently affording
coverage with respect to the Premises, and the information contained therein is accurate as
of the date set forth therein or, if no date is set forth therein, as of the date hereof.
§4.07. Schedule H attached hereto lists all employees presently employed at the
Premises and the compensation payable to each, and the information contained therein is
accurate as of the date set forth therein or, if no date is set forth therein, as of the date hereof,
and, except as otherwise set forth in such schedule, none of such employees is covered by a
union contract and there are no retroactive increases or other accrued and unpaid sums
owed to any employee. The employees listed in Schedule H attached hereto are covered by
collective bargaining agreements with Locals ________________ and ______________
(the “Union Contracts”); Schedule H lists the employment classification and union
affiliation of each person employed at the Premises that is covered by the Union Contracts;
Seller has timely made all contributions required to be made by Seller pursuant to the
Union Contracts with respect to Seller’s period of ownership of the Premises, including,
but not limited to, Seller’s obligations with respect to union pension and retirement benefit
plans established pursuant to the Taft-Hartley Act, 29 U.S.C. §186 (“Union Retirement
Plans”), and Seller shall not, after the date of this contract, enter into any new union
contract or modify any existing Union Contract without first obtaining Purchaser’s
approval, which approval shall not be unreasonably withheld or delayed. If the Premises
are located in the City of New York and the employees presently employed at the Premises
are not covered by the Union Contracts, Seller and Purchaser shall each comply with the
applicable provisions of Section 22-505 of the New York City Administrative Code (the
“Displaced Building Service Workers Act”). Seller and Purchaser shall each indemnify
and hold harmless the other against any loss, costs, claims, liabilities and expenses it may
incur, including reasonable attorneys’ fees, by reason of the other party’s breach of its
obligations under the Union Retirement Plan and the Displaced Building Service Workers
Act. The indemnification obligations set forth in this §4.07 shall survive Closing.
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§4.08. The schedule of service, maintenance, supply and management contracts
(“Service Contracts”) attached hereto as Exhibit I lists all such contracts affecting the
Premises, and the information set forth therein is accurate as of the date set forth therein or,
if no date is set forth therein, as of the date hereof.
§4.09. The copy of the certificate of occupancy for the Premises attached hereto
as Schedule J is a true copy of the original and such certificate has not been amended or
superseded, but Seller makes no representation as to compliance with any such certificate.
§4.10. (a) As of the date of this contract: The assessed valuation of the Land and
Building and the real estate taxes set forth in Schedule D, if any, are the assessed valuation
of the Premises and the real estate taxes payable with respect thereto for the fiscal year(s)
indicated in such schedule (subject to any abatements that may become applicable after the
date of this contract and any increases or changes in real estate taxes resulting from a
retroactive change in the tax rate). Except as otherwise set forth in Schedule D, there are
no tax abatements or exemptions affecting the Premises as of the date of this contract.
(b) There are no pending proceedings or appeals to correct or reduce the
assessed valuation of the Premises.
§4.11. Except as otherwise set forth in a schedule attached hereto, if any, if the
Premises are used for residential purposes, (i) each apartment contains a range and a
refrigerator, and all of the ranges and refrigerators and all of the items of personal property
(or replacements thereof) listed in such schedule, if any, are and on the Closing Date will
be owned by Seller free of liens and encumbrances other than the lien(s) of the Existing
Mortgage(s), if any, and (ii) all apartments have been painted within the last three years.
§4.12. The Personal Property, as of the Closing Date, is owned by Seller free of
liens and encumbrances other than the lien(s) of the Existing Mortgage(s), if any.
§4.13. To Seller’s knowledge no incinerator, compactor, boiler or other burning
equipment on the Premises is being operated in violation of applicable law. If copies of a
certificate or certificates of operation therefor have been exhibited to and initialed by
Purchaser or its representative, such copies are true copies of the originals.
§4.14. Except as otherwise set forth in Schedule D, to Seller’s knowledge, no
assessment payable in annual installments, or any part thereof, has become a lien on the
Premises.
§4.15.
Section.
Seller is not a “foreign person” as defined in the Code Withholding
§4.16. Seller is a ________________ that has been duly organized and is in good
standing under the laws of the state of its formation.
§4.17. Seller has taken all necessary action to authorize the execution, delivery
and performance of this contract and has the power and authority to execute, deliver and
perform this contract and consummate the transaction contemplated hereby. The person
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signing this contract on behalf of Seller is authorized to do so. Assuming this contract has
been duly authorized, executed and delivered by each of the other party(ies) to this contract,
this contract and all obligations of Seller hereunder are the legal, valid and binding
obligations of Seller, enforceable in accordance with the terms of this contract, except as
such enforcement may be limited by bankruptcy, insolvency, reorganization or other
similar laws affecting the enforcement of creditors’ rights generally and by general
principles of equity (regardless of whether such enforceability is considered in a
proceeding in equity or at law).
§4.18. The execution and delivery of this contract and the performance of its
obligations hereunder by Seller will not conflict with any provision of any law or
regulation to which Seller is subject or any agreement or instrument to which Seller is a
party or by which it is bound or any order or decree applicable to Seller or result in the
creation or imposition of any lien on any of Seller’s assets or property which would
materially and adversely affect the ability of Seller to carry out the terms of this contract.
Seller has obtained any consent, approval, authorization or order of any court or
governmental agency or body required for the execution, delivery or performance by Seller
of this contract.
§4.19.
The Premises constitute one tax lot.
§4.20. Seller has not received written notice of and has no knowledge of any
action, suit, arbitration, unsatisfied order or judgment, government investigation or
proceeding pending against Seller with respect to the Premises which if adversely
determined could have a material adverse effect on the Premises or interfere with the
consummation of the transaction contemplated by this contract.
§4.21. Seller is not a, and is not acting directly or indirectly for or on behalf of
any, person, group, entity or nation named by any Executive Order of the United States
Treasury Department as a terrorist, “Specifically Designated National and Blocked
Persons,” or other banned or blocked person, entity, nation or transaction pursuant to any
law, order, rule or regulation that is enforced or administered by the Office of Foreign
Assets Control and Seller is not engaged in this transaction, directly or indirectly on behalf
of, or instigating or facilitating this transaction, directly or indirectly, on behalf of any such
person, group, entity, or nation.
§4.22.
Premises.
To Seller’s knowledge, there are no underground fuel storage tanks at the
§4.23. Seller has received no notice of and has no knowledge of any actual or
proposed taking in condemnation of all or any part of the Premises.
§4.24.
__________.
Seller has been known by no other name for the past ten (10) years except:
§4.25. The representations and warranties of Seller set forth in §§ 4.03, 4.04,
4.05, 4.07, 4.08, 4.10(b), 4.11, 4.12, 4.13, 4.18, 4.20 and 4.21 as restated as of the Closing
shall survive the Closing for a period of [one year] (the “Survival Period”). None of
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Seller’s other representations or warranties shall survive the Closing. No claim for a
misrepresentation or breach of warranty of Seller shall be actionable or payable if the
breach in question results from or is based on a condition, state of facts or other matter
which was known to Purchaser prior to the Closing. Seller shall have no liability to
Purchaser for any misrepresentation or breach of warranty of Seller (a) unless the valid
claims for all such misrepresentations or breaches collectively aggregate more than
[$_____] (the “Floor”), in which event the full amount of such valid claims shall be
actionable up to the aggregate amount of $_________, and (b) unless written notice
containing a description of the specific nature of such breach shall have been given by
Purchaser to Seller prior to the expiration of the Survival Period, if any, and an action shall
have been commenced by Purchaser against Seller within the Survival Period, if any. The
prevailing party in any litigation arising from a claim under this §4.25 shall be entitled to
reimbursement for all legal fees and expenses in connection therewith.
For purposes of this Section, the phrase “to Seller’s knowledge” shall mean the actual
knowledge of ______________ without any special investigation.
Except where limited specifically to the date of this contract or other date, the
representations and warranties made by Seller in this contract are made as of the date of
execution and delivery of this contract, and except as otherwise set forth in §6.05, shall be
deemed restated and shall be true and accurate on the Closing Date.
Section 5.
“As Is” Condition, No Representations Not Expressly Set Out in
Contract, Representations and Warranties of Purchaser
§5.01.
Purchaser acknowledges that:
(a)
Purchaser has inspected or has had an opportunity to inspect the Premises,
is fully familiar with the physical condition and state of repair thereof, and, subject to the
provisions of §7.01, §8.01, §9.04 and Section 7, shall accept the Premises “as is” and in
their present condition, subject to reasonable use, wear, tear and natural deterioration
between now and the Closing Date, without any reduction in the Purchase Price for any
such change in condition. Seller shall not be liable for any latent or patent defects in the
Premises.
(b)
Before entering into this contract, Purchaser has made such examination of
the Premises, the operation, income and expenses thereof and all other matters affecting or
relating to this transaction as Purchaser deemed necessary. In entering into this contract,
Purchaser has not been induced by and has not relied upon any representations, warranties
or statements, whether express or implied, made by Seller or any agent, employee or other
representative of Seller or by any broker or any other person representing or purporting to
represent Seller, which are not expressly set forth in this contract, whether or not any such
representations, warranties or statements were made in writing or verbally.
§5.02.
Purchaser represents and warrants to Seller that:
(a)
The funds comprising the Purchase Price to be delivered to Seller in
accordance with this contract are not derived from any illegal activity.
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(b)
Purchaser has taken all necessary action to authorize the execution, delivery
and performance of this contract and has the power and authority to execute, deliver and
perform this contract and the transaction contemplated hereby. The person signing this
contract on behalf of Purchaser is authorized to do so. Assuming this contract has been
duly authorized, executed and delivered by each of the other party(ies) to this contract, this
contract and all obligations of Purchaser hereunder are the legal, valid and binding
obligations of Purchaser, enforceable in accordance with the terms of this contract, except
as such enforcement may be limited by bankruptcy, insolvency, reorganization or other
similar laws affecting the enforcement of creditors’ rights generally and by general
principles of equity (regardless of whether such enforceability is considered in a
proceeding in equity or at law).
(c)
The execution and delivery of this contract and of any note and Purchase
Money Mortgage required hereunder and the performance of its obligations hereunder by
Purchaser will not conflict with any provision of any law or regulation to which Purchaser
is subject or any agreement or instrument to which Purchaser is a party or by which it is
bound or any order or decree applicable to Purchaser, and will not result in the creation or
imposition of any lien on any of Purchaser’s assets or property which would materially and
adversely affect the ability of Purchaser to carry out the terms of this contract. Purchaser
has obtained any consent, approval, authorization or order of any court or governmental
agency or body required for the execution, delivery or performance by Purchaser of this
contract.
(d)
Purchaser is a _______________ that has been duly organized and is in
good standing under the laws of the state of its formation.
(e)
To Purchaser’s knowledge, there is no action, suit, arbitration, unsatisfied
order or judgment, government investigation or proceeding pending against Purchaser
which, if adversely determined, could individually or in the aggregate materially interfere
with the consummation of the transaction contemplated by this contract.
(f)
Purchaser is not a, and is not acting directly or indirectly for or on behalf of
any, person, group, entity or nation named by Executive Order of the United States
Treasury Department as a terrorist, “Specifically Designated National and Blocked
Person,” or other banned or blocked person, entity, nation or transaction pursuant to any
law, order, rule or regulation that is enforced or administered by the Office of Foreign
Assets Control and Purchaser is not engaged in this transaction, directly or indirectly, on
behalf of, or instigating or facilitating this transaction, directly or indirectly, on behalf of
any such person, group, entity or nation.
(g)
The representations and warranties of Purchaser set forth in this Section 5
are made as of the date of this contract and are restated as of the Closing and shall survive
the Closing for a period of [one year], except that the representation in §5.02(d) shall not
survive the Closing.
For purposes of this §5.02, the phrase “to Purchaser’s knowledge” shall mean the actual
knowledge of ______________ without any special investigation.
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Section 6.
Seller’s Obligations as to Leases
§6.01. Unless otherwise provided in a schedule attached to this contract, Seller
shall not, between the date of this contract and the Closing, without Purchaser’s prior
written consent, which consent shall not be unreasonably withheld or delayed: (a) amend,
renew or extend any Lease in any respect, except to the extent required by law or by the
express terms of such Lease; (b) grant a written lease to any person or entity occupying
space without a Lease (except as required by law); (c) terminate any lease or Tenancy
except by reason of a default by the tenant thereunder; (d) consent to the assignment of a
Lease or subletting by any tenant except as required by the terms of the applicable Lease or
by law or (e) permit anyone to use or occupy any space pursuant to an oral agreement
except pursuant to the Tenancies. Seller shall not, without Purchaser’s consent (which may
be granted or denied at Purchaser’s discretion) enter into any lease or other occupancy
agreement with any person or entity directly or indirectly affiliated with or related to Seller,
Seller’s managing agent, or any principal of Seller or Seller’s managing agent (a “Related
Lease Transaction”).
§6.02. Unless otherwise provided in a schedule attached to this contract, Seller
shall not, between the date of this contract and the Closing, permit the occupancy of, or
enter into any new lease, occupancy agreement or license agreement for, space in the
Building which is presently vacant or which may hereafter become vacant, without first
giving Purchaser written notice of the identity of the proposed tenant, occupant or licensee,
together with (a) either a copy of the proposed lease, occupancy agreement or license
agreement, or a summary of the terms thereof in reasonable detail and (b) a statement of the
amount of the brokerage commission, if any, payable in connection therewith and the terms
of payment thereof.
If (y) Purchaser objects to such proposed lease, occupancy agreement or
license agreement and notifies Seller of its objection within seven business days after
receipt of Seller’s notice, or (z) such lease, occupancy agreement or license agreement
constitutes a Related Transaction, Seller shall not enter into the proposed lease, occupancy
agreement or license agreement. If clause (y) applies and the prospective tenant, licensee
or occupant would have commenced paying rent or a license fee prior to the Closing Date if
Purchaser had not objected, Purchaser shall pay to Seller at the Closing, in the manner
specified in §2.02, (A) the rent, additional rent and other charges that would have been
payable under the proposed lease, occupancy agreement or license agreement from the date
on which the tenant’s, occupant’s or licensee’s obligation to pay rent would have
commenced if Purchaser had not so objected until the Closing Date, less (B) the Reletting
Expenses (hereinafter defined), as amortized over the period commencing on the proposed
rent commencement date of such lease or agreement and ending on the proposed expiration
date of such lease or agreement and apportioned as of the Closing Date. The “Reletting
Expenses” shall equal the amount of the brokerage commission, any construction
allowance or other monetary payment to be made to the proposed tenant, occupant or
licensee, and the reasonable cost of decoration or other work required to be performed by
the landlord under the terms of the proposed lease, occupancy agreement or license
agreement to prepare the premises for the tenant’s, occupant’s or licensee’s occupancy.
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If Purchaser does not so notify Seller of its objection to a proposed lease,
occupancy agreement or license agreement or consents to same and if such lease or
agreement does not involve a Related Transaction, Seller shall have the right to enter into
the proposed lease, occupancy agreement or license agreement with the tenant, occupant or
licensee identified in Seller’s notice. If Seller enters into such lease or agreement and
Seller has reasonably incurred out-of-pocket expenses in connection with such transaction,
including brokerage commissions, reasonable legal fees, and/or fix up costs (the “Leasing
Expenses”), then:
1. If the new tenant or occupant is not required to commence paying, and
does not pay, rent until after the Closing Date, Purchaser shall reimburse
Seller at the Closing for all the Leasing Expenses and Seller shall pay to the
appropriate parties the Leasing Expenses, which obligation shall survive the
Closing; but
2. If the new tenant or occupant commences paying rent prior to the
Closing Date, Purchaser shall pay Seller at Closing the unamortized portion
of the Leasing Expenses. The Leasing Expenses shall be amortized over a
period commencing on the rent commencement date under such lease or
agreement and ending on the expiration date of such lease or agreement (not
taking into account any renewal or extension rights), and the unamortized
portion shall be determined as of the Closing Date. Seller shall pay to the
appropriate parties the Leasing Expenses, which obligation shall survive the
Closing.
If Seller fails to pay the Leasing Expenses as required by this Section, Seller shall
indemnify and hold harmless Purchaser from all loss, cost, expense, liability, and damages,
including reasonable attorneys’ fees, Purchaser may incur by reason of such failure, which
indemnification obligation shall survive Closing.
§6.03. If any space is vacant on the Closing Date, Purchaser shall accept the
Premises subject to such vacancy, provided that the vacancy was not permitted or created
by Seller in violation of any restrictions contained in this contract.
§6.04. Seller shall not grant any concessions or rent abatements for any period
following the Closing without Purchaser’s prior written consent.
§6.05. Seller does not warrant that any particular Lease or Tenancy will be in
force or effect at the Closing or that the tenants will have performed their obligations
thereunder. The termination of any Lease or Tenancy prior to the Closing by reason of the
tenant’s default shall not affect the obligations of Purchaser under this contract in any
manner or entitle Purchaser to an abatement of or credit against the Purchase Price or give
rise to any other claim on the part of Purchaser.
§6.06. Seller hereby indemnifies and agrees to defend Purchaser against any
claims made by tenants in the Premises with respect to their security deposits other than (a)
claims with respect to tenants’ security deposits to the extent paid, credited or assigned to
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Purchaser pursuant to §10.01, (b) claims made against Purchaser pursuant to §7-107 of the
New York General Obligations Law (“GOL”) with respect to funds for which Seller was
not liable, and (c) claims made pursuant to §7-108 of the GOL by tenants to whom
Purchaser failed to give the written notice specified in §7-108(2)(c) of the GOL within
thirty days after the Closing Date. The foregoing indemnity and agreement shall survive
the Closing and shall be in lieu of any escrow permitted by §7-108(d) of the GOL, and
Purchaser hereby waives any right it may have to require any such escrow.
Section 7.
Responsibility for Violations
§7.01. Except as provided in §7.02 and §7.03, all notes or notices of violations of
law or governmental ordinances, orders or requirements which were noted or issued prior
to the date of this contract by any governmental department, agency or bureau having
jurisdiction as to conditions affecting the Premises and all liens which have attached to the
Premises prior to the Closing pursuant to the Administrative Code of the City of New York,
if applicable, shall be removed or complied with by Seller and Seller shall pay any fines or
penalties imposed by reason of any such violations. If such removal or compliance or
payment of fines or penalties, as applicable, has not been completed prior to the Closing,
Seller shall pay to Purchaser at the Closing the reasonably estimated unpaid cost, including
the reasonable fees of Purchaser’s attorney, architect and expediter, to effect or complete
such removal or compliance and any penalties imposed for non-compliance, and Purchaser
shall be required to accept title to the Premises subject thereto, except that Purchaser shall
not be required to accept such title and may terminate this contract if (a) Purchaser’s
institutional lender reasonably refuses to provide financing by reason thereof or (b) the
Building is a multiple dwelling and either (i) such violation is rent impairing and causes
rent to be unrecoverable under Section 302-a of the Multiple Dwelling Law or (ii) a
proceeding has been validly commenced by tenants and is pending with respect to such
violation for a judgment directing deposit and use of rents under Article 7-A of the Real
Property Actions and Proceedings Law. All such notes or notices of violations noted or
issued on or after the date of this contract shall be the sole responsibility of Purchaser.
§7.02. If the reasonably estimated aggregate cost to remove or comply with any
violations or liens which Seller is required to remove or comply with pursuant to the
provisions of §7.01 shall exceed the Maximum Amount specified in Schedule D, Seller
shall have the right to cancel this contract, unless Purchaser elects to accept title to the
Premises subject to all such violations or liens, in which event Purchaser shall be entitled to
a credit of an amount equal to the Maximum Amount against the monies payable at the
Closing.
§7.03. Seller’s failure to remove or fully comply with any violations which a
tenant unaffiliated with Seller is required to remove or comply with pursuant to the terms
of its lease by reason of such tenant’s use or occupancy shall not be an objection to title or
a breach of Seller’s obligations under this Section 7. Purchaser shall accept the Premises
subject to all such violations without any liability of Seller with respect thereto or any
abatement of or credit against the Purchase Price, except that if Purchaser’s institutional
lender reasonably refuses to provide financing by reason of a violation described in this
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Section, Purchaser shall not be required to accept the Premises subject thereto and
Purchaser shall have the right to terminate this contract.
§7.04. If this contract is terminated by Purchaser or Seller pursuant to this
Section 7, such termination shall be subject to the provisions of §13.07.
§7.05. If required, Seller, upon written request by Purchaser, shall promptly
furnish to Purchaser written authorizations to make any necessary searches for the
purposes of determining whether notes or notices of violations have been noted or issued
with respect to the Premises or liens have attached thereto.
Section 8.
§8.01.
Destruction, Damage or Condemnation
Damage by Casualty.
(a)
Damage Not in Excess of [$_____________]. If, prior to the Closing, there
shall occur damage to the Premises caused by fire or other casualty which would cost less
than [$____________] (the “Casualty Threshold”) to repair, as reasonably determined by
an engineer selected by Seller and reasonably satisfactory to Purchaser, and such fire or
other casualty does not adversely affect the lobby, building-wide systems, or common
areas and the continued operation of the balance of the Premises not damaged and does not
give rise to rent abatement or termination rights of lessees under leases covering more than
___% (the “Percentage”) of the rentable square feet of the Building, then Purchaser shall
not have the right to terminate this contract by reason thereof, but Seller shall assign to
Purchaser at the Closing, by written instrument in form and substance reasonably
satisfactory to Purchaser, all of the insurance proceeds payable on account of any such fire
or casualty, shall deliver to Purchaser any such proceeds actually paid to Seller, and shall
afford to Purchaser at Closing a credit against the balance of the Purchase Price in an
amount equal to any deductible. If the limit of Seller=s insurance policy with respect to a
casualty at the Premises is less than the cost of restoration, then Buyer shall be entitled to a
further reduction in the Purchase Price in an amount equal to the difference between the
cost of restoration and the limit of such insurance policy (less the deductible). The
proceeds of rent interruption insurance, if any, shall on the Closing Date be appropriately
apportioned between Purchaser and Seller.
(b)
Damage in Excess of [$______________]. If prior to the Closing there
shall occur damage to the Premises caused by fire or other casualty which would cost an
amount equal to the Casualty Threshold or more to repair, as reasonably determined by an
engineer selected by Seller and reasonably satisfactory to Purchaser, or the damage affects
the lobby, building-wide systems, or common areas or the continued operation of the
balance of the Premises not damaged or gives rise to rent abatement or termination rights
of lessees under leases covering more than the Percentage of the rentable square feet of the
Building, then Purchaser may elect to terminate this contract by notice given to Seller and
Escrowee within ten (10) days after Seller has given Purchaser notice that such damage
occurred, or at the Closing, whichever is earlier, upon which termination, Escrowee shall
deliver the Downpayment to Purchaser, this contract shall thereupon be null and void and
neither party hereto shall thereupon have any further obligation to the other, except for
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those obligations and liabilities that are expressly stated to survive termination of this
contract. If Purchaser does not elect to terminate this contract, then the Closing shall take
place as herein provided, without abatement of the Purchase Price, and Seller shall assign
to Purchaser at the Closing, by written instrument in form reasonably satisfactory to
Purchaser, all of the insurance proceeds payable on account of any such fire or casualty,
shall deliver to Purchaser any such proceeds or awards actually paid to Seller, and shall
afford to Purchaser at Closing a credit against the balance of the Purchase Price in an
amount equal to any deductible. The proceeds of rent interruption insurance, if any, shall
on the Closing Date be appropriately apportioned between Purchaser and Seller.
(c)
Seller agrees not to repair any damage to the Premises (other than
emergency repairs) without Purchaser’s prior written consent and not to incur
Reimbursable Amounts totaling in the aggregate in excess of [$________] without
Purchaser’s prior written consent. Purchaser shall have the right to participate in any
discussions, claims adjustments or settlements with insurance companies regarding any
damage to the Premises.
(d)
The term “Reimbursable Amounts” shall mean costs and expenses actually
and reasonably incurred by or for the account of Seller in connection with fire or other
casualty for (x) compliance with governmental ordinances, orders or requirements of any
governmental department, agency or bureau having jurisdiction of the Premises, (y)
safeguarding the Premises or any part thereof, including any protective restoration or (z)
emergency repairs made by or on behalf of Seller (to the extent Seller has not theretofore
been reimbursed by its insurance carrier).
§8.02. Condemnation. If after the execution and delivery of this contract and
prior to Closing, any proceedings are instituted by any governmental authority which shall
relate to the proposed taking of all or any portion of the Premises by eminent domain, or if
any such proceedings are pending on the date of execution and delivery of this contract, or
if all or any portion of the Premises is taken by eminent domain after the date of this
contract and prior to the Closing, Seller shall promptly notify Purchaser in writing no later
than two business days after Seller’s receipt of any notification or the date of Closing,
whichever occurs earlier. Purchaser shall thereafter have the right and option to terminate
this contract by giving written notice to Seller and Escrowee within thirty (30) days after
receipt by Purchaser of the notice from Seller or on the Closing Date, whichever is earlier.
If the Closing Date was scheduled to occur after the institution of such proceeding, the
Closing Date shall be deemed adjourned in order that Purchaser shall have its full
thirty-day period within which to determine whether or not to proceed with Closing. If
Purchaser timely terminates this contract, Purchaser shall be entitled to receive the
Downpayment from Escrowee and this contract shall thereupon be terminated and become
void and of no further effect, and neither party hereto shall have any obligations of any
nature to the other hereunder or by reason hereof, except for those obligations and
liabilities that are expressly stated to survive termination of this contract. If Purchaser does
not elect to terminate this contract, the parties hereto shall proceed to the Closing and at the
Closing, Seller shall assign to Purchaser all of its right, title and interest in all awards in
connection with such taking and shall pay to Purchaser any award paid to Seller with
respect to such taking. Purchaser shall have the right to participate in discussions or
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proceedings with any governmental authority relating to the proposed taking of any portion
of the Premises.
§8.03.
Section 9.
The provisions of this Section 8 shall survive the Closing.
Covenants of Seller
Seller covenants that between the date of this contract and the Closing:
§9.01. If Purchaser is acquiring the Premises subject to the Existing Mortgage(s),
the Existing Mortgage(s) shall not be amended or supplemented or prepaid in whole or in
part. Seller shall pay or make, as and when due and payable, all payments of principal and
interest and all deposits required to be paid or made under the Existing Mortgage(s).
§9.02. Seller shall not modify or amend any Service Contract or enter into any
new service contract unless the same is terminable without penalty or fee by the then owner
of the Premises upon not more than 30 days’ notice.
§9.03. Seller shall maintain in full force and effect until the Closing the
insurance
