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Revised 7/2020
(2) Initial Earnest Money Deposit: Insert the amount of the Initial Earnest Money Deposit, if any, in dollars on the second line, and
check the appropriate boxes for method of payment and when the payment is to be delivered. NOTE: Any Initial Earnest
Money Deposit should be paid to the Escrow Agent designated in Paragraph 1(f) and delivered with the Contract.
(3) Additional Earnest Money Deposit: If an Additional Earnest Money deposit is to be given at a later date, insert the amount of
that deposit in dollars on the third line. and Also insert the due date on the fourth line, and check the appropriate box for
method of payment. Any Additional Earnest Money Deposit should be paid by one of the methods specified in paragraph 1(d)
to the Escrow Agent designated in Paragraph 1(f) and delivered no later than 5 p.m. on the due date specified. NOTE: A personal
check is not a specified method for payment of an Additional Earnest Money Deposit and may be rejected by the Seller. NOTE:
Time is “of the essence” with respect to the payment of any additional earnest money deposit.
(4) Seller Financing: Insert the dollar amount of the financing from Seller on the fourth line, and complete and attach the current
standard Seller Financing Addendum (NCAR/NCBA Form 2A5-T).
(5) Building Deposit: If Buyer is paying Seller a building deposit in connection with improvements to be constructed on the
Property by Seller, insert the amount of the Building Deposit on the fifth line. In determining whether and how much Building
Deposit the Buyer may be willing to pay, the Buyer should heed the “Warning” at the end of Paragraph 1(l).
(6) Balance of Purchase Price: Insert the dollar amount of the balance due from Buyer on the sixth line. NOTE: This amount
should equal the purchase price minus any dollar amounts inserted in second through fifth lines. In the case of a
counteroffer, which alters any figure in subparagraph (d), all altered figures must be initialed and should be dated by
all parties. Care should be taken to be certain that the figures in the second through the sixth lines, when added, always
equal the purchase price set forth in the first line.
(e) Pre-Construction Evaluation Period: The Pre-Construction Evaluation Period is an agreed-upon period of time, beginning on the
Effective Date, during which the Buyer and Seller determine whether certain conditions described in paragraph 2 of the Contract can
be fulfilled. The date that the Pre-Construction Evaluation Period will end should be inserted in the blank. NOTE: Time is “of the
essence” with respect to the expiration of the Pre-Construction Evaluation Period.
(h) Plans and Specifications: Great care should be taken in describing the Plans and Specifications as accurately as possible in order to
help reduce potential disputes between the Buyer and Seller regarding the nature and extent of the improvements that will be
constructed. This should be accomplished by both listing and attaching site plans, drawings, floor plans, etc. as exhibits to the Contract
or, if attaching a document as an exhibit is not feasible, by describing any such document with specificity (title of document, date,
number of pages, designer, etc.) so that the document can be readily identified. The Schedule of Allowances Addendum
(NCAR/NCBA Form 800A1-T) may be used to describe the type and amount of any allowances.
(i) Earnest Money Deposit: In the event of a breach of the Contract by Buyer, the Earnest Money Deposit is not forfeited and should
not be immediately paid to Seller. If Buyer and Seller cannot agree upon the disbursement of the Earnest Money Deposit and Seller
is able to prove damages resulting from such breach, the Earnest Money Deposit shall be applied as a credit against such damages,
including any costs to which Seller may be entitled. Any balance of the Earnest Money Deposit remaining after application of such
credit shall be refunded to Buyer. If Seller’s damages and costs exceed the Earnest Money Deposit and the Building Deposit, Buyer
shall remain liable to Seller for such excess.
(j) Escrow Agent: Insert the name of the firm designated to hold the Initial Earnest Money Deposit and/or the Additional Earnest Money
Deposit, not the name of an individual Broker (unless it is to be held by a Broker who is a sole practitioner). Note that the name
indicated here should also be indicated on the "Firm" line at the bottom of the form under the acknowledgment of receipt of the earnest
money. NOTE: Any earnest money check should be made payable to the designated Escrow Agent.
(l) Building Deposit: The improvements that the Seller has agreed to make in exchange for any Building Deposit that the Buyer has
agreed to pay should be described in the blank. If any Building Deposit is to be payable in installments, the amount of each installment
and the date the installment is due or other event triggering payment of the installment should be inserted in the installment schedule.
(n) Settlement Date: Insert the date upon which Settlement, as defined in Paragraph 1(n), is to occur. NOTE: Closing, as defined in
Paragraph 1(o), may or may not be completed on the same day Settlement occurs.
(o) Closing:
The residential real estate closing is a process typically including review and interpretation of the contract of sale, abstracting
and certification of title and application for appropriate title insurance, preparation, review and interpretation of financial accountings and
various legal documents, assuring compliance with mortgage lender loan instructions and recordation and cancellation of documents in
accordance with law. According to the NC State Bar Rules of Professional Responsibility Authorized Practice Advisory Opinion (2002-
1), a person who is not licensed to practice law in North Carolina and is not working under the direct supervision of an active member of
the State Bar may not perform functions or services that constitute the practice of law. Under the express language of N.C. Gen. Stat.
§§84-2.1 and 84-4, a non-lawyer who is not working under the direct supervision of an active member of the State Bar would be engaged
in the unauthorized practice of law if he or she performs any of the following functions for one or more of the parties to a residential real
estate transaction:
(i) preparing or aiding in preparation of deeds, deeds of trust, lien waivers or affidavits, or other legal documents;
(ii) abstracting or passing upon titles; or
(iii) advising or giving an opinion upon the legal rights or obligations of any person, firm, or corporation.
Under the express language of N.C. Gen. Stat. § 84-4, it is unlawful for any person other than an active member of the State Bar to hold
himself or herself out as competent or qualified to give legal advice or counsel or as furnishing any services that constitute the practice of
law. Additionally, under N.C. Gen. Stat. § 84-5, a business entity, including a corporation or limited liability company, may not provide