BAM LAND PARTNERS

PURCHASE TERMS OF USE

Cash Purchases and Owner-Financed Purchases

BAM Land Partners, a Texas Limited Liability Company

18281 FM 150 W, Ste 105 Unit 323, Driftwood, Texas 78619

Phone: (512) 522-3704 | Email: ryan@bamlandpartners.com | Website: bamlandpartners.com

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

These Purchase Terms of Use set out the terms applicable to the purchase and sale of vacant residential land from BAM Land Partners. The transaction-specific purchase price, property description, payment amounts, dates, fees, interest rate, term, county and state must be completed in the applicable transaction documents.

Buyer: ______________________________________________ Date: __________________

Seller: BAM Land Partners Effective Date: __________________

1. Property and Agreement to Purchase

BAM Land Partners (the “Seller”) agrees to sell, and the undersigned buyer (the “Buyer”) agrees to buy, the parcel of land described below, together with all fixtures, landscaping, improvements and appurtenances located thereon (collectively, the “Property”).

Parcel ID / Recorder: __________________________________________________________

Legal Description: ______________________________________________________________

______________________________________________________________________________

Items that will NOT remain with the Property: N/A, unless otherwise stated here: ____________________

Buyer’s mailing address: _________________________________________________________

Buyer’s phone: __________________________ Buyer’s email: __________________________

2. Purchase Price and Payment Structure

Purchase Price: $____________________ Down Payment: $____________________

Balance / New Loan: $____________________ Effective / Contract Date: ______________

The Buyer warrants that, except as otherwise provided in the transaction documents, Buyer will have sufficient cash at the time the agreement is signed and notarized to complete the purchase, except for the portion Seller has authorized to be paid under the owner-financing terms, if applicable.

2.1 Cash Purchase

For a cash sale, the transaction is not contingent on financing. The Buyer shall pay the purchase price as stated in the transaction documents. The purchase price, down payment money and balance due shall be entered in the applicable purchase agreement.

Buyer acknowledges that a one-time processing fee is due at signing, in the amount stated in the applicable transaction documents. Receipt of down payment money and the document preparation fee shall be acknowledged by receipt.

2.2 Owner Financing

For an owner-financed sale, Seller agrees to finance the stated portion of the purchase price pursuant to a promissory note from Buyer to Seller, bearing the agreed annual interest rate and payable over the agreed number of months in equal monthly payments, plus the Note Servicing Fee and estimated property taxes, as stated in the completed transaction documents. The financing is secured by a Land Sale Contract.

Financed amount: $____________________ Interest rate: __________ % per annum

Term: __________ months Monthly principal and interest payment: $____________________

Note Servicing Fee: $____________________ per month Estimated taxes: $____________________ per month

Total monthly payment: $____________________ First payment due: ____________________

The term of the Promissory Note is the number of months stated in the completed note. The actual final payment will be all principal and accrued interest not yet paid, together with any other unpaid amounts under the Note. Unless otherwise agreed or required by applicable law, payments will be applied first to accrued unpaid interest, then to late charges, then to principal. Payments shall be made through Seller’s payment system or at another place Seller designates in writing.

3. Down Payment, Fees and Receipt

Buyer has deposited, or shall deposit, the down payment money with BAM Land Partners in the amount and on the date stated in the applicable transaction documents. Buyer acknowledges the one-time processing fee due at signing. For owner-financed transactions, Buyer also acknowledges the one-time Note Set Up Fee / note setup fee, if stated in the transaction documents, and the Note Servicing Fee payable as part of the monthly payment.

Seller’s receipt shall acknowledge receipt of the down payment money and the document preparation fee. The receipt date and amounts shall be completed for the particular transaction.

4. Property Condition, Inspection and 90-Day Satisfaction Guarantee

Buyer represents that Buyer has personally inspected and examined the Property and accepts the Property in its “as-is” and present condition. Buyer accepts the present condition of all utility access to the Property.

BAM Land Partners 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 that period, BAM Land Partners agrees to either exchange the Property or refund all monies, minus closing costs, payment fees and accounting setup fees.

The Property is covered by this 90-Day Satisfaction Guarantee as stated in the other provisions of the transaction documents.

5. Utilities, Environmental Matters and Property Information

Seller is not aware of the existence of wetlands, shoreland or flood plain on or affecting the Property, except as follows: None. Seller knows of no hazardous substances or petroleum products having been placed, stored or released from or on the Property by any person in violation of any law, nor of any underground storage tanks having been located on the Property at any time, except as follows: None.

Seller warrants that the Property is free of all liens and that taxes are current, as provided in the Land Sale Contract. Seller warrants that the Property is available to Buyer as of the effective date of the contract.

Buyer shall not dump environmentally hazardous waste on the Property.

6. Closing, Title, Conveyance and Possession

The closing of the sale will be on or before the date stated in the transaction documents, unless extended under the agreement. Closing may be extended to within seven (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.

For a cash sale, Seller shall convey title to Buyer by Warranty Deed. Seller shall, prior to or at closing, satisfy all outstanding mortgages, deeds of trust and special liens affecting the Property that are 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, 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 a title search at Buyer’s own expense. If there are title defects, Seller shall notify Buyer within five (5) days of closing. At Buyer’s option, Buyer may: (a) if defects cannot be cured by the designated closing date, cancel the contract, in which case all earnest money or down payment monies deposited shall be returned; (b) accept title as is; or (c) if the defects are of such character that they can be remedied by legal action within a reasonable time, permit Seller such reasonable time to perform curative work at Seller’s expense. If Seller performs curative work, the closing time shall be extended for a reasonable period necessary for that action.

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.

Any appraisal shall be Buyer’s responsibility. A survey is not required. Prior to closing, the Property shall remain in Seller’s possession.

For an owner-financed sale, Seller shall hold the Warranty Deed until the Property is completely paid. Seller warrants that title shall remain free from loans, liens or encumbrances through the payment period and shall provide Buyer with marketable title at the time of title transfer. Seller shall record a Warranty Deed in the applicable county and state within thirty (30) days of payoff.

7. Closing Costs and Expenses

If closing is conducted through a title company, the following closing costs shall be paid as indicated below. There is no cost to Buyer for closing directly.

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		X
All other closing costs	X

* “Both” means 50/50 between Buyer and Seller. The allocation above reflects the check marks in the cash and owner-financing purchase agreement forms.

8. Taxes and Prorations

For transactions handled through closing, taxes for the current year, interest, maintenance fees, assessments, dues and rents, if any, shall be prorated through the Closing Date. If taxes for the current year vary from the amount prorated at closing, the parties shall adjust the prorations when tax statements for the current year become available.

For an owner-financed transaction, Seller will pay the taxes on the Property each year and Buyer will reimburse Seller each year. Buyer’s failure to reimburse Seller for all taxes accrued from the date of purchase within sixty (60) days of the date due will void the Land Sale Contract, and the remaining amount owed on the Property will become due within thirty (30) days. The monthly payment may include estimated property taxes, as stated in the completed Promissory Note.

9. Owner-Financing Promissory Note Terms

9.1. Promise to Pay: Borrower promises to pay BAM Land Partners, a Texas Limited Liability Company, or its order, the principal amount stated in the Promissory Note, together with interest on the unpaid principal balance from the stated commencement date until paid in full.

9.2. Default Rate: Upon default, including failure to pay upon final maturity, Lender may, at its option and if permitted under applicable law, increase the interest rate on the Note by five (5) percentage points (the “Default Rate”). The Default Rate shall thereafter supersede the rate stated in the payment paragraph, even if the default is subsequently cured.

9.3. Prepayment: Borrower may prepay the Note, in whole or in part, with no prepayment penalty. Only interest accrued to the date of payoff will be assessed.

9.4. Late Charge: If a payment is five (5) or more calendar days late, Borrower will be charged the late charge stated in the completed Promissory Note, in addition to the regularly scheduled payment and all other sums owed.

9.5. Events of Default: Each of the following constitutes an event of default under the Note: (a) Borrower fails to make any payment when due; (b) 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; (c) Borrower defaults under any loan in favor of another creditor, if that default may materially affect the real property securing the Note; or (d) any statement made or furnished by Borrower to Lender in connection with the loan was false when made.

9.6. Cure of Certain Non-Monetary Defaults: If a default other than a payment default is curable, and Borrower has not received notice of breach of the same provision within the preceding twelve (12) months, the default may be cured (and no event of default will have occurred) if, after receiving Lender’s written notice demanding cure, Borrower (1) cures the default within fifteen (15) days; or (2) if cure requires more than fifteen (15) days, immediately initiates sufficient steps to cure and continues and completes all reasonable and necessary steps as soon as reasonably practicable, but not more than thirty (30) days with respect to any non-monetary default.

9.7. Security and Acceleration: The Note is secured by a Land Contract of the same date. If there is a default in payment of any sum required under the Note, failure to perform any covenant in the securing Land Contract, or if the maker becomes insolvent or makes a general assignment for the benefit of creditors, the unpaid principal balance and accrued interest may, at the option of the holder or holders, immediately become due and payable, even if the stated maturity date has not arrived.

9.8. Sale or Transfer: In the event of any sale, transfer, alienation or other disposition of the property that is the subject of the securing Land Contract, or any part or interest in it, whether voluntary or involuntary, the entire unpaid principal balance and accrued interest may, at the option of the holder or holders, immediately become due and payable.

9.9. Collection Costs and Venue: Borrower agrees to pay all costs, including reasonable attorneys’ fees, incurred in collecting unpaid amounts. Jurisdiction and venue of any claim, action or proceeding to enforce the parties’ rights under the Note shall be in the state and federal courts located in the maker’s court of choice.

9.10. Waivers: Borrower waives presentment for payment, demand, notice, protest, notice of protest, diligence and non-payment of the Note, and all defenses based on any extension of time for payment that may be given by Lender to Borrower.

10. Owner-Financing Land Sale Contract Conditions

10.1. Timber: Until the total price of the Property, including interest, is paid, Seller reserves the right to limit the amount of timber removed from the Property to only the area needed to place a dwelling or structure.

10.2. Default Notice: Seller will notify Buyer by email if Buyer is in default. Buyer must keep a valid email address on file.

10.3. Monthly Payment Grace Period: Seller allows a grace period of five (5) days from the monthly payment due date. If payment has not been received within the grace period, a penalty stated in the applicable transaction documents will be assessed.

10.4. Possession Following Payment Default: Seller reserves the right to take back possession of the Property if Buyer is in default of the monthly payment by thirty-five (35) days. At that time, Seller will notify Buyer by email of default. Buyer will have thirty (30) days to bring payments current to cure the default. If full payment is not received within that time, the Property will be considered foreclosed and Buyer will forfeit all interest and payments made. If Seller and Buyer cannot resolve problems associated with the Property and legal action is taken, the losing party shall be responsible for all costs and legal fees associated with the legal action.

10.5. Tax Reimbursement Default: Failure to reimburse Seller for property taxes within sixty (60) days of the date due will void the Land Sale Contract, and the remaining amount owed on the Property will become due within thirty (30) days.

10.6. Deed After Payoff: Seller will record a Warranty Deed in the county and state identified in the transaction documents within thirty (30) days after payoff.

11. Payment Administration and Buyer Communications

The first owner-financing payment is scheduled to be approximately thirty (30) days after the contract date, as set out in the completed payment documents. Payments may be made by check or credit card. Seller will email an invoice for the payment, including a link for credit-card payment, and will email an auto-payment link to set up monthly payments and payment of the one-time note setup fee.

Buyer should review all information in the transaction package. If any information is incorrect, Buyer should contact Ryan Morris at (512) 522-3704 to have it corrected and forwarded. Buyer should follow the on-screen instructions for electronic signatures and initials and click “Done” when finished. Questions about completing electronic signature forms may be directed to (512) 522-3704.

After the final payment, Seller will send Buyer a Warranty Deed for review and approval before recording the deed in Buyer’s name.

The explanatory materials accompanying the owner-financing documents state that there are no prepayment penalties and encourage Buyer to pay more than the minimum monthly payment, if affordable, to reduce the principal more quickly and save interest. They also state that late payments may result in additional fees and that if Buyer sells the Property, the balance due must still be paid to Seller.

The explanatory materials further state that Seller may send a certified letter giving Buyer thirty (30) days to make payment before terminating the contract and reselling the land if payments are not made. Buyer is encouraged to contact Seller by phone or email if payment difficulties arise so the parties may try to work out an arrangement.

Seller may eventually require Buyer’s Social Security Number for tax purposes. The explanatory materials state that Seller prefers to obtain this information over the phone for Buyer’s security.

12. Default and Remedies Under the Purchase Agreement

If Buyer fails to comply with the purchase agreement, Buyer will be in default. Seller may either (a) enforce specific performance, seek such other relief as may be provided by law, or both; or (b) terminate the agreement and receive the earnest money as liquidated damages, thereby releasing both parties from the agreement.

If, due to factors beyond Seller’s control, Seller fails within the time allowed to make any non-casualty repairs or deliver evidence of clean title, Buyer may either (a) extend the time for performance up to fifteen (15) days, with the Closing Date extended as necessary; or (b) terminate the agreement as the sole remedy and receive a refund of the earnest money.

If Seller fails to comply with the agreement for any other reason, Seller will be in default and Buyer may either (a) enforce specific performance, seek such other relief as may be provided by law, or both; or (b) terminate the agreement and receive the earnest money, thereby releasing both parties from the agreement.

These purchase-agreement remedies are stated in addition to the separate owner-financing default, cure, acceleration and possession provisions above. The source forms contain different notice and cure periods in different instruments; the completed transaction documents should be reviewed together.

13. 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 out of the sales proceeds, unless securing payment of any loans assumed by Buyer; and (b) assumed loans will not be in default. If any representation in the agreement is untrue on the Closing Date, Buyer may terminate the agreement and the earnest money will be refunded to Buyer. All representations contained in the agreement will survive closing.

14. Federal Tax Requirements

If Seller is a “foreign person,” as defined by applicable law, or if Seller 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 that amount to the Internal Revenue Service together with the appropriate tax forms. IRS regulations require written reports if cash in excess of specified amounts is received in the transaction.

15. Eminent Domain

If the Property is condemned by eminent domain after the effective date, Seller and Buyer shall agree to continue the closing, or a portion of it, or cancel the contract. If the parties cannot agree, the contract shall remain valid with Buyer being entitled to cancel and have the down payment money returned.

16. Brokers and Agents

The parties represent that neither party has employed the services of a real estate broker or agent in connection with the Property, or, if such agents have been employed, the party employing the agent shall pay any and all expenses outside the closing of this agreement.

17. 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 below, or to any other address properly designated in writing.

To Buyer: ____________________________________________________________________

Buyer phone: __________________________ Buyer email: __________________________

To Seller: BAM Land Partners, 18281 FM 150 W, Ste 105 Unit 323, Driftwood, Texas 78619

Seller phone: (512) 522-3704 Seller email: ryan@bamlandpartners.com

18. Assignment

This agreement may not be assigned by Buyer without Seller’s consent. This agreement may be assigned by Seller and shall be binding on the heirs and assigns of the parties.

19. Entire Agreement; Prior Agreements; Interpretation

This agreement incorporates all prior agreements between the parties and contains the entire and final agreement of the parties. It cannot be changed except by the parties’ written agreement or written consent. Neither party has relied upon any statement or representation made by the other party or any sales representative bringing the parties together. Neither party shall be bound by any terms, conditions, oral statements, warranties or representations not contained in this agreement. Each party acknowledges having read and understood this agreement.

The provisions of this agreement apply to and bind the heirs, executors, administrators, successors and assigns of the respective parties. When used in this agreement, the singular includes the plural and the masculine includes the feminine, as the context may require.

20. Recording, Governing Law and Time of Performance

This agreement may be recorded in the official records of the county of ____________________, State of ____________________.

This agreement shall be governed by the laws of the State of ____________________.

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

21. Attorney’s Fees

The prevailing party in any legal proceeding brought under or with respect to the transaction described in this agreement is entitled to recover from the non-prevailing party all costs of the proceeding and reasonable attorneys’ fees.

22. Binding Effect and Execution

This instrument becomes binding once Buyer signs it. The parties acknowledge and accept the offer and the terms stated in this agreement as a legal and binding contract. The effective date is the date of execution, as completed below.

BUYER

Printed Name: __________________________________ Signature: ______________________________

Date: ____________________

SELLER: BAM LAND PARTNERS

By: ____________________________________________ Title: __________________________________

Date: ____________________

23. Receipt

Receipt of Down Payment Money is acknowledged in the amount of $____________________.

Receipt of Document Preparation Fee is acknowledged in the amount of $____________________.

Date: ____________________ Received by: ______________________________________________

24. Transaction-Specific Terms and Completion

The following information must be completed in the applicable transaction documents and is not supplied as a fixed term in this document:

Buyer’s full legal name and contact information;
Parcel ID, recorder information and complete legal description;
Purchase price, down payment, balance due and any new loan amount;
Applicable cash-sale or owner-financing selection;
Processing fee, document preparation fee, note setup fee, Note Servicing Fee and any late charge;
For owner financing: principal amount financed, interest rate, payment amount, number of monthly payments, total term, estimated taxes and first payment date;
Closing date, effective date, county and state for recording, and governing-law state;
Any exceptions to the stated property, environmental or title representations.

Important Document-Completion Note

The source contracts contain blank or incomplete transaction fields and certain provisions that use different wording or timelines across the Cash Contract, Promissory Note, Land Sale Contract and explanatory materials. This document preserves those provisions as separate terms and does not determine which conflicting provision controls. Before use or signature, BAM Land Partners and the Buyer should complete all blanks and have qualified Texas real-estate counsel review the final form for consistency, enforceability and compliance with applicable law.