PURCHASE TERMS OF USE

LS Equity LLC | lsequityland.com

10810 N Tatum Blvd 102-798, Phoenix, Arizona 85028 | (608) 620-5193 | info@lsequityland.com

AGREEMENT FOR THE SALE AND PURCHASE OF REAL ESTATE

NO BROKER – VACANT RESIDENTIAL LAND

WARNING: THIS CONTRACT HAS SUBSTANTIAL LEGAL CONSEQUENCES AND THE PARTIES ARE ADVISED TO CONSULT LEGAL AND TAX COUNSEL.

For valuable consideration of ten dollars and other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the Buyer and LS Equity LLC, a Wisconsin Limited Liability Company with a mailing address of 10810 N Tatum Blvd 102-798, Phoenix, Arizona 85028 (“Seller”), do hereby covenant, contract and agree as follows. These Purchase Terms of Use govern the sale of vacant residential land offered through LS Equity LLC / lsequityland.com, and apply whether the Property is purchased for cash or through Seller-provided owner financing. Where a term applies differently depending on the method of purchase, that difference is noted directly within the section.

Overview: What These Terms Mean

The Agreement for the Sale and Purchase of Real Estate outlines the terms and conditions of sale that Buyer and Seller mutually agree upon, including the purchase price, financing terms, receipt of down payment, and Seller’s written guarantee.

For owner-financed purchases, Buyer also signs a Promissory Note and a Land Sale Contract. The Promissory Note is Buyer’s promise to pay the specified monthly payment on time each month. There is no prepayment penalty, and Buyer is encouraged to pay more than the minimum when possible to reduce total interest paid. Late or missed payments result in additional charges; continued non-payment leads to a certified letter giving Buyer 30 days to bring the account current before Seller terminates the contract and re-lists the land. Buyer is encouraged to contact Seller proactively if a payment issue arises.

Payments on financed purchases are due 30 days from the contract date, and Seller will email an invoice with a link to pay by credit card. Late payments incur extra fees. If Buyer sells the property before it is paid off, the balance due to Seller must still be paid. Buyer must reimburse Seller for property taxes, or may request monthly billing for taxes instead.

The Land Sale Contract provides that if Buyer does not make payments, Seller will give 30 days’ notice and then has the right to take back the property without going to court. Buyer may not dump environmentally hazardous waste on the property.

In summary, Buyer’s obligation on a financed purchase is to make minimum monthly payments on time. Failure to do so leads to default proceedings that can affect Buyer’s credit and result in loss of the property. Buyer is encouraged to contact Seller directly to work out any payment difficulties.

SECTION A: GENERAL PURCHASE TERMS

The following terms apply to every purchase of Property through LS Equity LLC, whether paid in cash or through owner financing.

AGREEMENT TO SALE AND PURCHASE: Seller agrees to sell, and Buyer agrees to buy from Seller, the property identified by Parcel ID and Legal Description in the transaction documents (the “Property”).
SALES PRICE: The parties agree to the Purchase Price and Down Payment Money set forth in the transaction documents. For a cash purchase, the remaining Balance Due is paid at closing. For an owner-financed purchase, the remaining balance is paid as a New Loan under the Promissory Note and Land Sale Contract described in Section B below.
FINANCING: Buyer selects one of the following methods of purchase:
CASH SALE: This contract is not contingent on financing.
OWNER FINANCING: Seller agrees to finance the stated portion of the purchase price pursuant to a Promissory Note from Buyer to Seller, bearing interest per annum, payable over the stated term in even monthly payments, plus a Note Servicing Fee, plus estimated taxes, secured by a Land Contract, with the first payment beginning as stated in the transaction documents. The additional terms governing owner-financed purchases are set out in Section B below.
DOWN PAYMENT MONEY: Buyer has deposited the stated down payment money with LS Equity LLC. Additionally, Buyer acknowledges a one-time processing fee due at signing.
PROPERTY CONDITION: Buyer represents that they have personally inspected and examined the Property and accepts it in its “as-is” and present condition.

This property is covered by a 90-Day Satisfaction Guarantee, as covered in Section 24 below.

UTILITIES: The present condition of all utility access to the Property is accepted by Buyer. Seller is not aware of the existence of wetlands, shoreland, or flood plain on or affecting the Property except as disclosed in the transaction documents. Seller knows of no hazardous substances or petroleum products having been placed, stored, or released on the Property in violation of law, and no underground storage tanks, except as disclosed in the transaction documents.
CLOSING: The closing of the sale will occur on or before the closing date stated in the transaction documents, unless extended under the terms hereof. Closing may be extended up to 7 days after objections to matters disclosed in the title abstract, certificate, or Commitment, or by the survey, have been cured. The closing date may also be extended by written agreement of the parties.
TITLE AND CONVEYANCE: Seller shall, prior to or at closing, satisfy all outstanding mortgages, deeds of trust, and special liens affecting the Property not specifically assumed by Buyer. Title shall be good and marketable, subject only to: (a) covenants, conditions, and restrictions of record; (b) public and private utility easements and roads and rights-of-way; (c) applicable zoning ordinances, protective covenants, and prior mineral reservations; (d) special and other assessments on the Property, if any; and (e) general taxes for the current year and subsequent years. A title report will not be provided to Buyer at closing; Buyer may elect to conduct their own title search at their own expense. If title defects exist, Seller shall notify Buyer within 5 days of closing, and Buyer may, at Buyer’s option: (a) cancel this contract if defects cannot be cured by the closing date, with all earnest money or down payment monies returned; (b) accept title as-is; or (c) permit Seller reasonable time to perform curative work at Seller’s expense if the defects can be remedied through legal action within a reasonable time, in which case the closing date shall be extended as necessary. Seller represents that the Property may be legally used as zoned and that no government agency has served notice requiring repairs, alterations, or corrections of any existing condition except as stated in the transaction documents.

Method of conveyance: Seller conveys title by Special Warranty Deed on cash purchases. On owner-financed purchases, Seller conveys title by Warranty Deed once the Property is paid in full, per Section B.

APPRAISAL, SURVEY AND TERMITE INSPECTION: Any appraisal of the Property is the responsibility of Buyer. A survey is not required.
POSSESSION AND TITLE: Prior to closing, the Property shall remain in the possession of Seller.
CLOSING COSTS AND EXPENSES: The closing costs below apply if closing occurs through a title company. There is no cost to Buyer when closing directly with Seller. Transfer Taxes apply only to owner-financed purchases; all other listed costs apply to both cash and owner-financed purchases.

Closing Cost	Buyer	Seller	Both*
Attorney Fees / Title Company Fees	X
Title Insurance	X
Title Abstract or Certificate	X
Recording Fees		X
Appraisal	X
Survey	X
Transfer Taxes (owner-financed purchases only)		X
All Other Closing Costs	X

* Both = 50/50 between Buyer and Seller.

PRORATIONS: Taxes for the current year, interest, maintenance fees, assessments, dues, and rents, if any, will be prorated through the Closing Date. If current-year taxes vary from the amount prorated at closing, the parties shall adjust the prorations once tax statements for the current year are available.
DEFAULT: If Buyer fails to comply with this contract, Buyer will be in default, and Seller may either (a) enforce specific performance and seek other relief provided by law, or (b) terminate this contract and receive the earnest money as liquidated damages, releasing both parties from the contract. If, due to factors beyond Seller’s control, Seller fails within the allowed time to make non-casualty repairs or deliver evidence of clean title, Buyer may either (a) extend the time for performance up to 15 days, with the Closing Date extended as necessary, or (b) terminate this contract as the sole remedy and receive a refund of the earnest money. If Seller fails to comply with this contract for any other reason, Seller will be in default and Buyer may either (a) enforce specific performance and seek other relief provided by law, or (b) terminate this contract and receive the earnest money, releasing both parties from the contract.
ATTORNEY’S FEES: The prevailing party in any legal proceeding brought under or with respect to the transaction described in this contract is entitled to recover from the non-prevailing party all costs of such proceeding and reasonable attorney’s fees.
REPRESENTATIONS: Seller represents that, as of the Closing Date: (a) there will be no liens, assessments, or security interests against the Property that will not be satisfied from sales proceeds, unless securing payment of loans assumed by Buyer; and (b) any assumed loans will not be in default. If any representation in this contract is untrue on the Closing Date, this contract may be terminated by Buyer and the earnest money will be refunded to Buyer. All representations in this contract survive closing.
FEDERAL TAX REQUIREMENT: If Seller is a “foreign person” as defined by applicable law, or fails to deliver an affidavit that Seller is not a “foreign person,” Buyer shall withhold from the sales proceeds an amount sufficient to comply with applicable tax law and deliver it to the Internal Revenue Service with appropriate tax forms. IRS regulations require filing written reports if cash in excess of specified amounts is received in the transaction.
AGREEMENT OF PARTIES: This contract contains the entire agreement of the parties and cannot be changed except by their written agreement.
NOTICES: All notices from one party to the other must be in writing and are effective when mailed to, hand-delivered at, or transmitted by facsimile machine to the addresses on file for Buyer and Seller. Seller’s notice address is LS Equity LLC, 10810 N Tatum Blvd 102-798, Phoenix, Arizona 85028, Phone: (608) 620-5193, Email: info@lsequityland.com.
ASSIGNMENT: This agreement may not be assigned by Buyer without Seller’s consent. This agreement may be assigned by Seller and is binding on the heirs and assigns of the parties.
PRIOR AGREEMENTS: This contract incorporates all prior agreements between the parties, contains the entire and final agreement of the parties, and cannot be changed except by written consent. Neither party has relied on any statement or representation made by the other party or any sales representative bringing the parties together. Neither party is bound by any terms, conditions, oral statements, warranties, or representations not contained herein. Each party acknowledges having read and understood this contract. This contract binds the heirs, executors, administrators, successors, and assigns of the respective parties. The singular includes the plural and the masculine includes the feminine as context requires.
NO BROKER OR AGENTS: The parties represent that neither has employed a real estate broker or agent in connection with the Property, or, if such an agent has been employed, that the employing party will pay all expenses related to that agent outside of closing.
EMINENT DOMAIN: If the Property is condemned by eminent domain after the effective date, Seller and Buyer shall agree to continue the closing, in whole or in part, or cancel this Contract. If the parties cannot agree, this contract remains valid, with Buyer entitled to cancel and receive a return of the down payment money.
RECORDING: This agreement may be recorded in the official records of the applicable county and state.
OTHER PROVISIONS – OUR GUARANTEE: LS Equity LLC provides an additional inspection period of 90 days from the date of down payment. If, for any reason, Buyer is unsatisfied with the Property during this period, LS Equity LLC agrees to either exchange the property or refund all monies paid, minus closing costs, payment fees, and accounting setup fees.

TIME IS OF THE ESSENCE IN THE PERFORMANCE OF THIS AGREEMENT.

GOVERNING LAW: This contract is governed by the laws of the State of Arizona.

Receipt

Receipt of Down Payment Money is acknowledged. Receipt of the Document Preparation fee is also acknowledged.

SECTION B: ADDITIONAL TERMS FOR OWNER-FINANCED PURCHASES ONLY

The following terms apply only when Buyer purchases the Property through Seller-provided owner financing, in addition to the General Purchase Terms in Section A. These terms come from the Promissory Note and Land Sale Contract Buyer signs as part of a financed purchase.

B-1. Promissory Note

For value received, Borrower promises to pay LS Equity LLC, a Wisconsin Limited Liability Company with a mailing address of 10810 N Tatum Blvd 102-798, Phoenix, Arizona 85028 (“Lender”), or to order, the principal amount stated in the transaction documents, together with interest on the unpaid principal balance until paid in full.

PAYMENT: Borrower will pay Lender monthly principal and interest payments, plus a Note Servicing Fee, plus an amount for estimated property taxes, for a total monthly payment as stated in the transaction documents, inclusive of interest calculated on the unpaid principal balance at the stated annual rate. This estimated payment assumes all payments are made exactly as scheduled; the actual final payment will cover all remaining principal and accrued interest, together with any other unpaid amounts under the Note. Unless otherwise agreed or required by law, payments are applied first to accrued unpaid interest, then to late charges, then to principal. Borrower will pay Lender through Lender’s designated payment system or such other place as Lender may designate in writing.
DEFAULT RATE: Upon default, including failure to pay at final maturity, Lender may, if permitted by applicable law, increase the interest rate on the Note by five (5) percentage points (“Default Rate”). The Default Rate supersedes the rate in Paragraph 1 above, even if the default is subsequently cured.
PREPAYMENT: Borrower may prepay the Note, in whole or in part, with no prepayment penalty.
LATE CHARGE: If a payment is 5 or more calendar days late, Borrower will be charged a late fee in addition to the regularly scheduled payment and all other sums owed.
DEFAULT: Each of the following constitutes an event of default under the Note:
Borrower fails to make any payment when due;
Borrower fails to comply with or perform any other material term, obligation, covenant, or condition contained in any other agreement between Lender and Borrower, including the Purchase and Sale Agreement, Promissory Note, and Land Contract;
Borrower defaults under any loan in favor of another creditor, if such default may materially affect the Property securing this Note; and
Any statement made or furnished to Lender by Borrower in connection with this loan was false when made.

If a default, other than a payment default, is curable and Borrower has not been given notice of breach of the same provision within the preceding 12 months, it may be cured, and no event of default will have occurred, if Borrower, after receiving written notice from Lender: (1) cures the default within fifteen (15) days; or (2) if the cure requires more than fifteen (15) days, immediately initiates and diligently completes all reasonable steps necessary to cure the default, not to exceed thirty (30) days for any non-monetary default.

This Note is secured by a Land Contract of the same date. If Borrower defaults in payment, fails to perform any covenant in the securing Land Contract, becomes insolvent, or makes a general assignment for the benefit of creditors, the unpaid principal balance and accrued interest shall, at the holder’s option, become immediately due and payable, regardless of the stated maturity date.

If the Property that is the subject of the Land Contract securing this Note is sold, transferred, or otherwise disposed of, in whole or in part, voluntarily or involuntarily, the entire unpaid principal balance and accrued interest shall, at the holder’s option, become immediately due and payable, regardless of the stated maturity date.

Borrower agrees to pay all costs, including reasonable attorneys’ fees, incurred in collecting any unpaid amounts. Jurisdiction and venue for any claim, action, or proceeding to enforce rights under this Note shall be in the state and federal courts located in the maker’s court of choice. Borrower waives presentment for payment, demand, notice, protest, notice of protest, diligence, and non-payment of this Note, and all defenses based on any extension of time for payment given by Lender to Borrower.

B-2. Land Sale Contract

Buyer agrees to buy and LS Equity LLC, a Wisconsin Limited Liability Company with a mailing address of 10810 N Tatum Blvd 102-798, Phoenix, Arizona 85028, or its assigns (“Seller”), agrees to sell all tract or parcel of land, with any improvements located thereon, described by Parcel ID and Legal Description in the transaction documents, together with all fixtures, landscaping, improvements, and appurtenances (the “Property”), except for any items specifically excluded in the transaction documents.

Purchase Price and Method of Payment:

Buyer warrants that, except as otherwise provided, Buyer will have sufficient cash at the time this agreement is signed and notarized to complete the purchase of the Property, except for the portion Seller has authorized for payment under the terms of this Land Sale Contract. The terms of this Land Sale Contract are as follows:

Seller warrants the Property to be free of all liens, and taxes are current.
Seller warrants the Property to be available to Buyer as of this contract’s effective date.
Seller holds the right to limit the amount of timber removed from the Property to only that area needed to place a dwelling or structure, until the total price of the Property, including interest, is paid.
Seller will hold the Title Warranty Deed to the Property until it is completely paid, and Seller warrants that the Property Title will remain free from loans, liens, or encumbrances through the payment period.
Seller will provide Buyer with a marketable title at the time of title transfer.
Seller will pay property taxes each year and Buyer will reimburse Seller each year. Failure of Buyer to reimburse Seller for all taxes accrued within 60 days of the date due will void this Contract, and the remaining amount owed on the Property will become due within 30 days.
Seller will notify Buyer by email (Buyer must keep a valid email address on file) if Buyer is in default.
Seller allows a grace period of 5 days from the due date for the monthly payment. If payment is not received within the grace period, a penalty will be assessed.
Seller reserves the right to take back possession of the Property if Buyer is in default of the monthly payment by 35 days, at which point Seller will notify Buyer by email of default. Buyer will have 30 days to bring payments current to cure the default. If full payment is not received, the Property will be considered foreclosed and Buyer will forfeit all interest and payments made. If Seller and Buyer cannot resolve a dispute and legal action is taken, the losing side is responsible for all costs and legal fees associated with that action.
The terms of payment are set forth in the transaction documents, including the items below.
Purchase price, as stated in the transaction documents.
Down payment amount, as stated in the transaction documents.
Total amount financed plus interest, as stated in the transaction documents.
Monthly payments for the stated term at the stated simple interest rate. A portion of each payment is applied to principal and interest, with the balance applied to the Note Servicing Fee and estimated taxes.
Payments will begin on the date stated in the transaction documents and continue until principal is paid in full.
There is no prepayment penalty. This Note can be paid off at any time; only interest accrued to the date of payoff will be assessed.
Seller will record a Special Warranty Deed to the applicable county and state within 30 days of payoff.

Binding Agreement Date:

This instrument becomes binding once Buyer signs it. By signing, Buyer accepts this offer subject to the terms of this Land Sale Contract as a legal and binding contract.

LS Equity LLC | lsequityland.com | (608) 620-5193 | info@lsequityland.com

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