AI Alabama Purchase Agreement

Get a complete, ready-to-use Alabama Residential Purchase and Sale Agreement, enter property address, purchase price, contingencies, and parties to generate a fully drafted contract in minutes., -

ALABAMA RESIDENTIAL PURCHASE AND SALE AGREEMENT

This Residential Purchase and Sale Agreement (this "Agreement") is entered into as of [[Effective Date]] ("Effective Date") by and between [[Seller Full Legal Name(s)]] ("Seller") and [[Buyer Full Legal Name(s)]] ("Buyer"). Seller agrees to sell and Buyer agrees to purchase the Property described below on the terms and conditions set forth in this Agreement., -

ARTICLE I, PARTIES AND PROPERTY

1. Seller

Seller: [[Seller Full Legal Name(s)]], residing at [[Seller Current Address]]. If Seller is married, both spouses must execute this Agreement and the deed unless the Property is Seller's separate property (Ala. Code § 35-4-20).

2. Buyer

Buyer: [[Buyer Full Legal Name(s)]], whose address for notice purposes is [[Buyer Address]]. Buyer shall take title as: [[Vesting, e.g., joint tenants with right of survivorship / tenants in common / sole and separate property]].

3. Property Description

Seller agrees to sell and convey to Buyer the real property commonly known as [[Property Street Address]], [[City]], Alabama [[ZIP Code]], County of [[County]] (the "Property"), more particularly described as:

> Legal Description: [[Full Legal Description from Current Deed or Title Commitment]]

Parcel Identification Number: [[Parcel/Tax ID Number]].

The Property includes all improvements, structures, fixtures, and appurtenances now or hereafter attached to or forming a permanent part of the real property, including but not limited to built-in appliances, central heating/cooling systems, water heaters, ceiling fans, window treatments, garage door openers, mailboxes, landscaping, and all items that would pass with a deed under Alabama law, EXCEPT as excluded in Section 4. A written conveyance of real property must satisfy the Statute of Frauds (Ala. Code § 35-4-1) and must be acknowledged before a notary public or other authorized officer (Ala. Code § 35-4-20).

4. Personal Property Included

The following items of personal property are included in the purchase price and shall convey to Buyer at no additional cost: [[List of Included Personal Property, e.g., refrigerator, washer/dryer, riding lawn mower, pool equipment]]. All included items shall be in the same condition at closing as on the Effective Date, subject to ordinary wear and tear.

5. Personal Property Excluded

The following items are excluded from this sale and shall be removed by Seller prior to closing: [[List of Excluded Personal Property, e.g., dining room chandelier, backyard playset, rose bushes]]. Seller shall repair any damage to the Property caused by removal., -

ARTICLE II, PURCHASE PRICE AND EARNEST MONEY

6. Purchase Price

The total purchase price for the Property is [[Purchase Price in Words]] Dollars ($[[Purchase Price, Numerals]]) ("Purchase Price"), payable as follows:

7. Earnest Money Deposit

Within [[Earnest Money Deadline, e.g., 3 business]] days after the Effective Date, Buyer shall deposit $[[Earnest Money Amount]] as earnest money ("Earnest Money") with [[Escrow Holder, e.g., ABC Title Company / Closing Attorney's Trust Account]] ("Escrow Holder"), whose address is [[Escrow Holder Address]]. The Earnest Money shall be held in a federally insured escrow account pending closing or earlier termination of this Agreement. Failure to timely deliver the Earnest Money is a material default. Disposition of the Earnest Money upon default or termination is governed by Section 29.

8. Additional Deposit

☐ Not applicable.
☐ Buyer shall deliver an additional deposit of $[[Additional Deposit Amount]] to Escrow Holder on or before [[Additional Deposit Deadline, date]].

9. Financing

☐ All Cash. This Agreement is NOT contingent on financing. Buyer shall provide written proof of funds within [[Proof-of-Funds Deadline, e.g., 5 business]] days after the Effective Date.

☐ Financing Contingency. This Agreement IS contingent on Buyer obtaining a mortgage loan commitment with the following terms:

• Loan Type: [[Conventional / FHA / VA / USDA / Other]]
• Loan Amount: Not to exceed $[[Loan Amount]] ([[Loan-to-Value Ratio, e.g., 80%]] LTV)
• Maximum Interest Rate: [[Max Interest Rate, e.g., 7.50%]] per annum, fixed
• Maximum Loan Term: [[Loan Term, e.g., 30]] years
• Loan Commitment Deadline: [[Loan Commitment Date]] ("Financing Deadline")

Buyer shall diligently and in good faith pursue loan qualification. If Buyer cannot obtain a written loan commitment meeting the above terms by the Financing Deadline through no fault of Buyer, Buyer shall deliver written notice to Seller by the Financing Deadline, whereupon this Agreement shall terminate and the Earnest Money shall be refunded to Buyer. If Buyer fails to deliver timely notice, the Financing Contingency is waived.

FHA/VA Notice: If this Agreement involves FHA or VA financing, Seller and Buyer acknowledge that the appraised value may establish the maximum loan amount and that FHA/VA property condition requirements may require repairs. Neither party is obligated to perform repairs beyond the amounts set forth in this Agreement unless separately agreed in writing.

10. Appraisal Contingency

☐ Appraisal Contingency Included. This Agreement is contingent on the Property appraising at not less than the Purchase Price. Buyer shall order the appraisal within [[Appraisal Order Deadline, e.g., 7]] days after the Effective Date. If the appraised value is less than the Purchase Price, Buyer shall notify Seller in writing by [[Appraisal Notice Deadline]] and may:

(a) Terminate this Agreement and receive a refund of the Earnest Money; or
(b) Proceed to closing at the Purchase Price (waiving this contingency); or
(c) Request a price reduction. Seller shall have [[Seller Response Period, e.g., 3 business]] days to accept or reject. If the parties cannot agree, Buyer may terminate and receive a refund of the Earnest Money.

Failure of Buyer to deliver timely notice waives this contingency and Buyer shall proceed at the Purchase Price.

☐ Appraisal Contingency Waived. Buyer agrees to close at the Purchase Price regardless of appraised value.

Alabama appraisals must be performed by a licensed or certified appraiser in accordance with Ala. Code §§ 34-27A-1 et seq. (Alabama Real Estate Appraisers Act)., -

ARTICLE III, DUE DILIGENCE AND INSPECTIONS

11. Inspection and Due-Diligence Period

Buyer shall have [[Due-Diligence Period, e.g., 10]] calendar days after the Effective Date (the "Due-Diligence Period") to conduct, at Buyer's sole expense, any and all inspections, tests, surveys, and investigations Buyer deems appropriate, including:

• General home inspection by a licensed inspector
• Structural, mechanical, electrical, and plumbing inspections
• Roof inspection
• Termite/wood-destroying organism (WDO) inspection (see Section 12)
• Radon, mold, asbestos, or lead-paint testing
• Septic/well testing (if applicable)
• HVAC inspection
• Pool/spa inspection (if applicable)
• Environmental or soil testing
• Survey (see Section 20)
• HOA document review (see Section 22)

Seller shall provide reasonable access to the Property during the Due-Diligence Period. Buyer shall give Seller or Seller's agent at least [[Inspection Notice Period, e.g., 24]] hours' prior notice of each entry, shall conduct inspections in a non-destructive manner, and shall restore the Property to its prior condition. Buyer is responsible for damages caused by Buyer's inspections. Buyer shall indemnify and hold Seller harmless from claims arising from Buyer's due-diligence activities.

Buyer's Inspection Notice: By the end of the Due-Diligence Period, Buyer shall deliver to Seller either: (a) a written notice terminating this Agreement (with the Earnest Money returned to Buyer); (b) a written Repair Request (Addendum __); or (c) written notice waiving all inspection objections and electing to proceed. Failure to deliver timely written notice constitutes a waiver of all inspection objections, and Buyer shall proceed to closing in the Property's "as-is" condition (subject to Seller's representations and required disclosures).

12. Termite and Wood-Destroying Organism Inspection

A termite/WDO inspection report by a licensed pest-control company is ☐ required / ☐ not required under this Agreement. If required:

• Buyer shall order the WDO inspection within [[WDO Order Deadline, e.g., 5]] days after the Effective Date.
• [[Party Responsible for WDO Cost, Buyer/Seller]] shall pay the cost of the WDO inspection report.
• If the WDO report reveals active infestation or material damage, [[Party Responsible for Treatment/Repair, Buyer/Seller/Negotiated]] shall bear treatment and repair costs up to $[[WDO Repair Cap, e.g., 2,000]]. Costs exceeding the cap shall be negotiated; if the parties cannot agree within [[Negotiation Period, e.g., 3]] days, either party may terminate with the Earnest Money refunded to Buyer.
• Alabama licensed pest-control companies must comply with Ala. Code § 2-28-1 et seq. (Alabama Pesticide Act) and Alabama Department of Agriculture and Industries regulations.

13. As-Is / Repair Negotiation

☐ "As-Is" Purchase. Buyer accepts the Property in its present, "as-is" condition and waives the right to request repairs (other than those required by lender, FHA/VA, or mandatory by law). Seller's required disclosures under Section 24 are not affected.

☐ Repair Negotiation. The parties have agreed to the repairs/credits set forth in the attached Repair Addendum (Addendum __). All agreed repairs shall be completed by [[Repair Completion Deadline]] by licensed contractors, with copies of receipts/invoices provided to Buyer at least [[Days Before Closing, e.g., 3]] days before closing. Buyer may inspect completed repairs before closing., -

ARTICLE IV, TITLE AND CLOSING

14. Title Commitment

Within [[Title Commitment Delivery Deadline, e.g., 15]] days after the Effective Date, [[Party Ordering Title, Seller/Buyer]] shall order (at the cost specified in Section 19) a title commitment from [[Title Company Name]] (the "Title Company") for an ALTA owner's policy insuring Buyer's title in the amount of the Purchase Price, subject only to the Permitted Exceptions in Section 15.

Buyer shall have [[Title Review Period, e.g., 5 business]] days after receipt of the title commitment (the "Title Review Period") to deliver written objections to title ("Title Objection Notice"). If Buyer delivers a Title Objection Notice, Seller shall have [[Seller Cure Period, e.g., 10]] days to cure or attempt to cure objectionable title matters ("Cure Period"). If Seller cannot or does not cure all objections within the Cure Period, Buyer may: (a) waive remaining objections and proceed to closing; or (b) terminate this Agreement and receive a refund of the Earnest Money. Failure of Buyer to deliver a timely Title Objection Notice waives all title objections raised by the commitment.

15. Permitted Exceptions / Title Requirements

At closing, Seller shall convey good and marketable fee simple title to the Property by [[Deed Type, e.g., General Warranty Deed / Special Warranty Deed]], free and clear of all liens, encumbrances, and defects, EXCEPT:

(a) Real property taxes and assessments for the current year not yet due and payable (prorated per Section 18);
(b) Easements and restrictions of record that do not materially impair use of the Property as a residence;
(c) HOA covenants, conditions, and restrictions of record;
(d) Zoning laws, ordinances, and regulations;
(e) Rights of way of record for public utilities; and
(f) Such other matters as Buyer approves in writing ("Permitted Exceptions").

Any mortgage, deed of trust, lien, or judgment lien against the Property (including any outstanding balance on [[Seller's Existing Loan, if any]]) shall be paid and released by Seller at or before closing.

16. Title Insurance

Owner's Policy: [[Party Paying Owner's Policy Premium, Buyer/Seller/Split]] shall pay the premium for an ALTA owner's title insurance policy in the amount of the Purchase Price issued by the Title Company to Buyer at closing.

Lender's Policy: If Buyer is obtaining financing, Buyer shall pay the premium for a lender's title insurance policy in the amount of the loan.

Alabama closings involving real property conveyances are typically conducted by a licensed Alabama attorney who certifies title and supervises the execution and recording of closing documents. Closing attorney: [[Closing Attorney Name and Firm, if selected]]; if not yet selected, the parties shall mutually agree on a closing attorney within [[Attorney Selection Deadline, e.g., 5]] days after the Effective Date.

17. Deed of Conveyance

Seller shall execute and deliver a [[General/Special Warranty]] Deed at closing. The Deed shall be prepared by the closing attorney and shall convey the Property to Buyer in the vesting stated in Section 2. The Deed must be acknowledged before a notary public and recorded in the Probate Court of [[County]] County, Alabama (Ala. Code § 35-4-20). Seller shall deliver a completed Form 1099-S to the closing attorney to facilitate IRS reporting where required.

18. Closing Date; Time and Location

Closing shall occur on or before [[Closing Date]] ("Closing Date"), or such other date as mutually agreed in writing, at [[Closing Location, e.g., offices of closing attorney / Title Company]]. Time is of the essence as to the Closing Date (Section 40). Either party may extend the Closing Date by up to [[Extension Period, e.g., 10]] calendar days upon written notice delivered at least [[Extension Notice Period, e.g., 3]] days before the originally scheduled closing, provided the extending party is not then in default.

19. Closing Costs

Seller's Costs (unless otherwise agreed): Real estate commissions; deed preparation and execution; Alabama documentary/transfer taxes (Ala. Code § 40-22-1, $0.50 per $500 or fraction thereof of the purchase price); satisfaction/payoff of existing mortgages, liens, and judgments; attorney's fees for Seller's closing representation (if any); any agreed repair credits or seller-paid costs; and any costs expressly allocated to Seller in this Agreement or by lender requirements.

Buyer's Costs (unless otherwise agreed): Loan origination and lender fees; lender's title insurance premium; recording fees for the deed, mortgage, and any other documents; owner's title insurance premium (if allocated to Buyer); survey costs (if ordered by Buyer); home inspection fees; appraisal fee; prepaid interest, insurance escrows, and impounds; attorney's fees for Buyer's closing representation (if any); HOA transfer fees; and any costs expressly allocated to Buyer in this Agreement or by lender requirements.

Proration: Real property taxes and assessments shall be prorated as of the Closing Date based on the most recent available tax bill using a 365-day calendar year. HOA dues shall be prorated. Any supplemental or corrected tax bill for periods through closing shall be Seller's responsibility. Rents, if any, shall be prorated. Utilities shall be placed in Buyer's name as of the Closing Date and Seller shall pay all utility charges through the Closing Date.

20. Survey

☐ Buyer shall obtain, at Buyer's expense, a current [[Survey Type, e.g., mortgage location / boundary / ALTA/NSPS land title]] survey by a licensed Alabama surveyor within [[Survey Deadline, e.g., 15]] days after the Effective Date.
☐ Seller shall provide Buyer with a copy of any existing survey Seller has in Seller's possession within [[Days, e.g., 5]] days after the Effective Date.
☐ No survey is required under this Agreement.

If the survey reveals an encroachment, overlap, boundary dispute, or other matter that is unacceptable to Buyer, Buyer shall notify Seller in writing within [[Survey Objection Period, e.g., 3 business]] days after receipt of the survey report. Such matters shall be treated as title objections and governed by Section 14.

21. Possession

Buyer shall receive possession of the Property:

☐ At closing and funding.
☐ On [[Post-Closing Possession Date]], pursuant to a Post-Closing Occupancy Agreement (Addendum __). If Seller remains in possession after closing, Seller shall pay Buyer occupancy fees of $[[Post-Closing Occupancy Fee per Day]] per day and shall maintain the Property and any existing insurance coverages during the occupancy period. Seller shall surrender possession by [[Possession Surrender Date and Time]]., -

ARTICLE V, PROPERTY CONDITION AND DISCLOSURES

22. Homeowners Association (HOA)

☐ The Property is NOT subject to an HOA.

☐ The Property IS subject to an HOA, [[HOA Name]], with monthly/quarterly/annual assessments of $[[HOA Assessment Amount]] per [[Assessment Period]].

If the Property is subject to an HOA, Seller shall, at [[Seller/Buyer]]'s expense, order and deliver to Buyer within [[HOA Docs Delivery Deadline, e.g., 7]] days after the Effective Date all applicable HOA documents, including: the Declaration of Covenants, Conditions, and Restrictions (CC&Rs); Bylaws; Rules and Regulations; current budget; most recent financial statements; minutes of the last [[Number, e.g., 12]] months of board meetings; pending/threatened special assessments; current HOA fees and any outstanding balances due on the Property; and any notices of violation.

HOA Document Review Period: Buyer shall have [[HOA Review Period, e.g., 5 business]] days after receipt of the complete HOA documents to approve or disapprove them. If Buyer disapproves, Buyer may terminate this Agreement by written notice within the HOA Review Period and receive a refund of the Earnest Money. Failure to deliver written disapproval within the HOA Review Period constitutes Buyer's approval.

HOA Approval of Transfer: If HOA approval of the sale or Buyer is required, this Agreement is contingent on such approval. If HOA approval is denied for reasons beyond Buyer's control, either party may terminate this Agreement and the Earnest Money shall be refunded to Buyer.

23. Sale of Buyer's Current Home Contingency

☐ Not applicable.

☐ This Agreement IS contingent on the closing of Buyer's current residence located at [[Buyer's Current Property Address]]. Buyer's property must close no later than [[Buyer's Property Closing Deadline]]. If Buyer's property has not closed by that date, Seller may deliver written notice to Buyer and this Agreement shall terminate [[Kick-Out Notice Period, e.g., 72]] hours after Seller's notice unless Buyer, within that period, waives this contingency and delivers evidence of financial ability to close (e.g., proof of sufficient liquid funds). If terminated, the Earnest Money shall be refunded to Buyer, EXCEPT as provided in Section 29.

Kick-Out Clause: Seller may continue to market the Property and accept backup offers. If Seller receives another acceptable offer, Seller shall deliver written notice to Buyer, and Buyer shall have [[Buyer Response Window, e.g., 48]] hours to waive this contingency (with evidence of funds). If Buyer does not waive, this Agreement terminates and the Earnest Money is refunded to Buyer.

24. Alabama Residential Property Disclosure

Seller represents that Seller has completed and provided to Buyer the Alabama Residential Property Disclosure Statement in accordance with the rules and requirements of the Alabama Real Estate Commission (AREC) and Ala. Code § 34-27-1 et seq. and implementing regulations, which are incorporated herein by reference ("Disclosure Statement").

The Disclosure Statement identifies Seller's knowledge of known material defects and conditions affecting the Property as of the Effective Date, including but not limited to: structural issues, foundation, roof, electrical, plumbing, HVAC, drainage, flooding, environmental hazards, permitted and unpermitted improvements, legal issues, and neighborhood conditions.

Buyer acknowledges receipt of the Disclosure Statement on [[Disclosure Receipt Date]], or ☐ the Disclosure Statement shall be provided within [[Delivery Deadline, e.g., 3]] days after the Effective Date. If Buyer has not received the Disclosure Statement prior to executing this Agreement, Buyer may rescind this Agreement by written notice within [[Rescission Window, e.g., 3 business]] days after receipt. Seller shall promptly supplement the Disclosure Statement if Seller discovers new material information prior to closing.

Alabama real estate professionals are required to disclose to all parties known material facts about the Property that would affect a reasonable person's decision to purchase (AREC Rules, Ala. Code § 34-27-1 et seq.).

25. Lead-Based Paint Disclosure

Federal Requirement: If the Property was built before 1978, Seller must (a) disclose any known lead-based paint and lead-based paint hazards; (b) provide Buyer with any records and reports pertaining to lead-based paint or hazards; and (c) provide Buyer with the EPA pamphlet "Protect Your Family From Lead in Your Home" (42 U.S.C. § 4852d; 40 C.F.R. Part 745). Buyer shall have a ten (10)-day period to conduct a risk assessment or inspection for lead-based paint hazards before becoming obligated under this Agreement, unless Buyer waives this right in writing. The Lead-Based Paint Disclosure Addendum (Addendum __) is attached and incorporated if the Property was built before 1978.

☐ Property built on or after January 1, 1978, lead-based paint disclosure not applicable.
☐ Property built before 1978, Lead-Based Paint Disclosure Addendum is attached.

26. Environmental and Flood Conditions

Flood Zone: The Property is located in:

☐ FEMA Special Flood Hazard Area (Zone A, AE, V, or VE), flood insurance may be required by Buyer's lender under the National Flood Insurance Act (42 U.S.C. § 4001 et seq.).
☐ Moderate-to-low risk flood zone (Zone B, C, or X), flood insurance is not required by most lenders but may be advisable.
☐ Zone designation not yet determined, Buyer should verify with FEMA Flood Map Service Center (msc.fema.gov).

Environmental: To Seller's actual knowledge, the Property: (a) does not contain underground storage tanks (USTs); (b) has not been used for industrial, manufacturing, or hazardous-waste storage; and (c) is not subject to any known environmental liens, orders, or contamination. Buyer is encouraged to commission an environmental site assessment (Phase I) if desired.

Meth Lab Disclosure: Seller discloses whether the Property has, to Seller's knowledge, been used for the manufacture of methamphetamine or other controlled substances: [[Yes/No/Unknown]]. If "Yes," Seller shall disclose and provide documentation of any remediation.

Well and Septic: ☐ The Property is served by public water and sewer. ☐ The Property has a private well and/or septic system. If applicable, Seller shall disclose the location, age, and last inspection date of the well/septic, and any known issues.

27. Utilities and Services

[[Party, Seller/Buyer]] shall be responsible for maintaining all utilities to the Property (electric, gas, water, sewer, trash, and internet/cable) through the Closing Date. Seller shall deliver the Property at closing with all utilities operational and in working order, and shall not terminate or cause termination of any service prior to the Closing Date.

28. Property Condition at Closing

Seller shall maintain the Property in its present condition, ordinary wear and tear excepted, through the Closing Date. Seller shall not make material alterations, remove fixtures or included items, or allow the Property to deteriorate. Buyer shall have the right to conduct a final walk-through inspection of the Property within [[Walk-Through Period, e.g., 24, 48 hours]] before closing to confirm: (a) the Property is in substantially the same condition as at the Effective Date; (b) all agreed repairs have been completed; and (c) all included personal property remains. If material changes are discovered, Buyer shall notify Seller immediately and the parties shall attempt to resolve the matter before closing., -

ARTICLE VI, DEFAULT AND REMEDIES

29. Default by Buyer

If Buyer fails to close or otherwise defaults under this Agreement (other than failure to obtain financing where the Financing Contingency has been duly invoked), and such default continues for [[Buyer Cure Period, e.g., 3 business]] days after written notice from Seller:

(a) Earnest Money as Liquidated Damages (Election A): If the parties agreed at signing (check box below), Seller may retain the Earnest Money as full and final liquidated damages for Buyer's default, representing a fair and reasonable pre-estimate of Seller's damages that are difficult to ascertain. Seller's retention of the Earnest Money under this election shall be Seller's sole and exclusive remedy against Buyer, and Seller waives the right to sue Buyer for specific performance or additional damages.

☐ Liquidated Damages Elected. Seller shall retain Earnest Money as liquidated damages.
Buyer's Initials: _____ Seller's Initials: _____

(b) Other Remedies (Election B, if liquidated damages NOT elected): Seller may: (i) pursue specific performance of this Agreement; (ii) sue for actual damages including lost profits, carrying costs, and consequential damages; (iii) retain the Earnest Money as partial compensation; or (iv) any other remedy available at law or equity.

30. Default by Seller

If Seller fails to close or otherwise defaults under this Agreement, and such default continues for [[Seller Cure Period, e.g., 3 business]] days after written notice from Buyer, Buyer may:

(a) Terminate this Agreement and receive a full refund of the Earnest Money;
(b) Seek specific performance of this Agreement (Ala. Code § 6-5-7 recognizes specific performance for contracts for the sale of real property); and/or
(c) Pursue any other remedy available at law or equity, including actual damages.

Exercise of one remedy by Buyer does not preclude other remedies unless expressly stated.

31. Earnest Money Disposition

The Earnest Money shall be released and disbursed as follows:

(a) Closing: Applied to Purchase Price or Buyer's closing costs.

(b) Termination with Buyer Refund: If this Agreement is terminated due to: (i) Buyer's timely invocation of the Financing Contingency (Section 9); (ii) Buyer's timely invocation of the Appraisal Contingency (Section 10); (iii) Buyer's timely invocation of the Inspection Contingency (Section 11); (iv) Buyer's timely invocation of the Title Contingency (Section 14); (v) Buyer's timely invocation of the HOA Contingency (Section 22); (vi) Buyer's timely invocation of the Home Sale Contingency (Section 23); (vii) Seller's failure to deliver required disclosures; or (viii) Seller's material default, the Earnest Money shall be refunded to Buyer.

(c) Forfeiture to Seller: If Buyer defaults without lawful excuse and the liquidated-damages election in Section 29(a) applies, or if no election applies and Seller makes demand, the Earnest Money shall be paid to Seller.

(d) Disputed Claims: If Escrow Holder receives conflicting instructions, Escrow Holder shall (i) hold the Earnest Money pending a written release signed by both parties or a court order; or (ii) interplead the funds into a court of competent jurisdiction. Escrow Holder shall not be liable for any act or omission in good faith. Escrow Holder's fees, if any, shall be shared equally by the parties unless otherwise ordered by a court.

Alabama real estate licensees who hold earnest money must comply with Ala. Code § 34-27-1 et seq. and AREC regulations governing trust accounts.

32. Attorneys' Fees and Costs

In any dispute arising out of this Agreement, the prevailing party shall be entitled to recover reasonable attorneys' fees and court costs from the non-prevailing party, to the extent permitted by Alabama law., -

ARTICLE VII, RISK OF LOSS AND ADDITIONAL PROVISIONS

33. Risk of Loss / Damage Before Closing

Risk of loss or damage to the Property shall remain with Seller until the transfer of legal title and possession to Buyer at closing. If, prior to closing, the Property is damaged by fire, casualty, or other cause:

(a) If the cost to repair is estimated at less than [[Minor Damage Threshold, e.g., $5,000]], Seller shall repair the damage before closing or credit Buyer the repair cost at closing, and the parties shall proceed to closing.

(b) If the cost to repair equals or exceeds [[Minor Damage Threshold, e.g., $5,000]] or the damage renders the Property uninsurable or uninhabitable, Buyer may: (i) terminate this Agreement and receive a full refund of the Earnest Money; or (ii) elect to close, in which case Seller shall assign to Buyer all insurance proceeds payable for the damage, credit any applicable deductible, and reduce the Purchase Price by any uninsured damage not covered by insurance.

Seller shall maintain existing hazard insurance on the Property through closing and shall not reduce coverage or allow it to lapse.

34. Real Estate Licensee Disclosure

The parties acknowledge and understand that Alabama real estate licensees represent one or more parties in this transaction as disclosed in the written Brokerage Disclosure provided pursuant to AREC regulations and Ala. Code § 34-27-1 et seq. The following licensees are involved in this transaction:

• Listing Broker/Agent: [[Listing Brokerage Name]], Agent: [[Listing Agent Name]], License No.: [[License Number]]
• Buyer's Broker/Agent: [[Buyer's Brokerage Name]], Agent: [[Buyer's Agent Name]], License No.: [[License Number]]
• Commission: [[Total Commission, e.g., X%]] of the Purchase Price, per separate listing agreement, payable by [[Party Paying Commission, typically Seller]] at closing.

If Buyer is unrepresented, Buyer acknowledges receipt of the AREC Consumer Disclosure and understands that the listing agent represents only Seller.

35. Home Warranty

☐ Not applicable.

☐ Seller shall provide Buyer with a one-year [[Home Warranty Provider]] home warranty plan at a cost not to exceed $[[Home Warranty Cap]], covering [[Covered Systems, e.g., HVAC, plumbing, electrical, built-in appliances]]. The home warranty plan does not substitute for property inspections.

☐ Buyer shall purchase a home warranty plan at Buyer's own expense.

36. Foreign Investment / FIRPTA

If Seller is a non-U.S. person (foreign national or foreign entity) within the meaning of the Foreign Investment in Real Property Tax Act (FIRPTA), Buyer may be required to withhold up to fifteen percent (15%) (or ten percent (10%) for certain owner-occupied residences under $1,000,000) of the Purchase Price and remit it to the IRS (26 U.S.C. § 1445). Seller represents: ☐ Seller is a U.S. citizen/resident and not subject to FIRPTA withholding. ☐ Seller is a foreign person and the closing attorney shall advise on withholding obligations. The closing attorney may rely on Seller's certification.

37. 1031 Exchange

☐ Not applicable.

☐ Seller / Buyer intends to conduct a Section 1031 tax-deferred exchange in connection with this transaction. The parties agree to cooperate in connection with such exchange at no additional cost, expense, or liability to the cooperating party.

38. Servicemembers Civil Relief Act

If Buyer or Seller is an active-duty military servicemember, certain rights and protections under the federal Servicemembers Civil Relief Act (50 U.S.C. §§ 3901 et seq.) may apply, including protections relating to mortgage interest rates and contract obligations. Parties who are active-duty servicemembers should consult a Judge Advocate or legal counsel.

39. Condition of Title Upon Closing / Seller's Representations

Seller represents and warrants as of the Effective Date and as of the Closing Date that:

(a) Seller has full legal authority to sell the Property and this Agreement is binding and enforceable against Seller;
(b) No other person or entity has any right of first refusal, option, or other right to purchase the Property;
(c) There are no pending or threatened condemnation, eminent domain, or zoning proceedings affecting the Property;
(d) There are no pending or threatened lawsuits, judgments, or proceedings that would affect title to the Property;
(e) All information in the Residential Property Disclosure Statement is true and complete to the best of Seller's knowledge;
(f) Seller has not received any notice from any governmental authority of any violation of law, code, or ordinance with respect to the Property that has not been disclosed to Buyer;
(g) Seller is not in default under any existing mortgage, deed of trust, or other security instrument encumbering the Property., -

ARTICLE VIII, GENERAL PROVISIONS

40. Notices

All notices, demands, or requests under this Agreement shall be in writing and delivered by: (a) personal delivery; (b) nationally recognized overnight courier; (c) certified U.S. mail, postage prepaid, return receipt requested; or (d) email with confirmed receipt (Ala. Code §§ 8-1A-1 et seq., Alabama Uniform Electronic Transactions Act). Notices to Seller shall be sent to: [[Seller Notice Address / Email]]. Notices to Buyer shall be sent to: [[Buyer Notice Address / Email]]. Notices to the respective brokers shall copy the broker's designated email address. Notice is effective upon personal delivery, upon email confirmation, or two (2) business days after deposit with the mail or courier. A party may change its notice address by written notice to the other party.

41. Time of Essence

Time is of the essence as to all dates and deadlines set forth in this Agreement. Failure to timely perform by any deadline (other than the Closing Date, which may be extended as provided in Section 18) that is not cured within any applicable notice or cure period shall constitute a default.

42. Entire Agreement; Integration

This Agreement, together with all Addenda and Exhibits listed in Section 45, constitutes the entire agreement between the parties with respect to the purchase and sale of the Property and supersedes all prior negotiations, representations, warranties, and understandings. No prior written or oral representations are binding unless set forth in this Agreement or an Addendum signed by both parties.

43. Amendments; Waivers

This Agreement may not be modified, amended, or waived except by a written instrument signed by both Seller and Buyer. No waiver of any provision shall be deemed a continuing waiver or a waiver of any other provision. No delay or failure to enforce any term is a waiver.

44. Counterparts; Electronic Signatures

This Agreement may be executed in one or more counterparts, each of which shall be deemed an original. Signatures transmitted by facsimile, PDF, or other electronic means shall be as valid and binding as original signatures. Electronic signatures are enforceable under the Alabama Uniform Electronic Transactions Act (Ala. Code §§ 8-1A-1 et seq.) and the federal Electronic Signatures in Global and National Commerce Act (E-SIGN, 15 U.S.C. § 7001 et seq.).

45. Addenda and Exhibits

The following Addenda are attached to and incorporated in this Agreement (check all that apply):

☐ Addendum A, Financing Addendum
☐ Addendum B, Inspection/Repair Addendum
☐ Addendum C, Sale of Buyer's Property Contingency / Kick-Out Clause
☐ Addendum D, Lead-Based Paint Disclosure (pre-1978 properties)
☐ Addendum E, HOA Disclosure and Review Addendum
☐ Addendum F, Post-Closing Occupancy Agreement
☐ Addendum G, FHA/VA Financing Addendum
☐ Addendum H, Home Warranty Addendum
☐ Addendum I, 1031 Exchange Addendum
☐ Addendum J, Additional Terms: [[Describe Additional Terms]]

46. Severability

If any provision of this Agreement is held invalid, void, or unenforceable by a court of competent jurisdiction, the remaining provisions shall remain in full force and effect.

47. Governing Law; Venue; Dispute Resolution

This Agreement is governed by and construed in accordance with the laws of the State of Alabama. Any litigation arising out of this Agreement shall be brought exclusively in the state or federal courts located in [[County]] County, Alabama. The parties irrevocably consent to personal jurisdiction in such courts.

☐ Mediation: As a condition precedent to litigation (other than to obtain emergency injunctive relief), the disputing party shall request mediation through a mutually agreed mediator or through a recognized mediation service. Costs of mediation shall be shared equally.

48. Assignment

Buyer shall not assign this Agreement or Buyer's rights hereunder without Seller's prior written consent, which consent may be withheld in Seller's sole discretion. Any permitted assignment shall not release Buyer from Buyer's obligations hereunder unless Seller expressly releases Buyer in writing.

49. Successors and Assigns

Subject to Section 48, this Agreement shall be binding upon and inure to the benefit of the parties and their respective heirs, executors, administrators, legal representatives, successors, and assigns.

50. Survival

The representations and warranties of the parties, the provisions of this Agreement relating to title, and the indemnification obligations shall survive the closing and delivery of the deed for [[Survival Period, e.g., one (1) year]] after the Closing Date unless a longer period is required by law., -

SIGNATURE BLOCK / EXECUTION

BY SIGNING BELOW, each party acknowledges having read, understood, and agreed to all terms of this Agreement., -

SELLER(S)

Signature: _______________________________
Printed Name: [[Seller Full Legal Name]]
Date: ____________________

Signature: _______________________________
Printed Name: [[Co-Seller Full Legal Name, if applicable]]
Date: ____________________, -

BUYER(S)

Signature: _______________________________
Printed Name: [[Buyer Full Legal Name]]
Date: ____________________

Signature: _______________________________
Printed Name: [[Co-Buyer Full Legal Name, if applicable]]
Date: ____________________, -

RECEIPT BY LISTING BROKER / ESCROW HOLDER

On behalf of [[Listing Brokerage Name]], receipt of a signed copy of this Agreement and the Earnest Money of $[[Earnest Money Amount]] is acknowledged.

Authorized Agent Signature: _______________________________
Printed Name: [[Listing Agent Name]]
License No.: [[License Number]]
Date: ____________________, -

CONTINGENCY TIMELINE SUMMARY

*Template, not professional legal advice. This form is provided for informational and educational purposes only and does not constitute legal, tax, or real estate advice. Alabama real estate transactions involve complex legal requirements. Consult a licensed Alabama real estate attorney and a licensed Alabama real estate professional before signing any purchase agreement. All statutes and regulations cited are as of June 2026; verify against current Alabama Code and AREC rules before use.*

*Sources: Ala. Code §§ 35-4-1, 35-4-20 (Statute of Frauds; conveyance requirements); Ala. Code §§ 34-27-1 et seq. (Alabama Real Estate Commission Act; broker duties; disclosure obligations); Ala. Code §§ 34-27A-1 et seq. (Alabama Real Estate Appraisers Act); Ala. Code §§ 8-1A-1 et seq. (Alabama Uniform Electronic Transactions Act); Ala. Code § 6-5-7 (specific performance, contracts for sale of land); Ala. Code § 40-22-1 (documentary/transfer taxes); Ala. Code § 2-28-1 et seq. (Alabama Pesticide Act, pest control licensing); 42 U.S.C. § 4852d; 40 C.F.R. Part 745 (lead-based paint disclosure); 42 U.S.C. §§ 4001 et seq. (National Flood Insurance Act); 26 U.S.C. § 1445; 26 C.F.R. § 1.1445-2 (FIRPTA withholding); 50 U.S.C. §§ 3901 et seq. (Servicemembers Civil Relief Act); 15 U.S.C. § 7001 et seq. (E-SIGN Act). As of June 2026.*