Patrick Malloy Communities

PATRICK MALLOY COMMUNITIES

NEW CONSTRUCTION

PURCHASE AND SALE AGREEMENT

__[Fill In Date]______

Month Day Year

1.Purchase and Sale. The undersigned Buyer (“Buyer”) agrees to buy, and the undersigned Seller (“Seller”) agrees to sell

all that tract or parcel of land, with such improvements as are located thereon, described as follows: All that tract of land lying and being in Land Lot [Communities.LandLot#] , of the [Communities.Dist#] District, [Communities.Section#]. Section of [Communities.County] County, Georgia and being known as Address [Lots.StreetAddress] , City [Lots.City] , Zip Code [Lots.ZipCode] according to the present system of numbering in and around this area, being more particularly described as Lot [Lots.Lot#] , Block [Lots.Block#] , Unit [Lots.Unit#] , Phase/Section [Lots.Phase#] , of__[Communities.SubCommunity]______

[Communities.MasterCommunity] subdivision, as recorded in Plat Book [Communities.Plat# (Sub-Community)] , Page [Communities.Page# (Sub-Community] , [Communities.County] County, Georgia records together with all fixtures, landscaping, improvements, and appurtenances, all being hereinafter collectively referred to as the “Property”. The full legal description of the Property is the same as is recorded with the Clerk of the Superior Court of the county in which the Property is located and is made a part of this Agreement by reference.

2.Purchase Price and Method of Payment. Buyer warrants that Buyer will have sufficient cash at closing, which when

combined with the loan(s), if any, referenced herein, will allow Buyer to complete the purchase of the Property. Buyer does not need to sell or lease other real property in order to complete the purchase of the Property. The purchase price of the property to be paid by Buyer at closing is:

[Lots.SalesPriceText (text version of sales price) Dollars, (U.S.)

$ [Lots.SalesPrice] subject to the following:

Select section A or B below. The others are not a part of this Agreement:

 A. All Cash At Closing: At Closing, Buyer shall pay the purchase price to Seller in cash or its equivalent. Buyer’s obligation to close shall not be contingent upon Buyer’s ability to obtain financing. Buyer shall pay all closing costs.

B. New Loan To Be Obtained: This Agreement is made conditioned upon Buyer’s ability to obtain a loan in the principal amount of [Contracts.RequestedLoan%] % of the purchase price listed above, with an interest rate of not more than the market rate per annum on the unpaid balance, to be secured by a first lien security deed on the Property; the loan to be paid in consecutive monthly installments of principal and interest over a term of not more than 30 years. “Ability to obtain” as used herein means that Buyer is qualified to receive the loan described herein based upon lender’s customary and standard underwriting criteria. The loan shall be of the type selected below: [The sections not marked are not a part of this Agreement.]:

(1)Loan Type: [Check one]

 Conventional

 FHA (see attached exhibit)

 VA Loan (see attached exhibit)

 Other Loan (see attached)

(2)Rate Type: [Check one]

 Fixed Rate Mortgage Loan

 Adjustable Rate Mortgage (“ARM”) Loan

(3)Closing Costs and Discount Points: [Check one]

[Select section (a) or (b) below. The section not marked is not a part of this Agreement.]:

 (a) Buyer shall pay all closing costs, loan discount points, survey costs, fees, insurance premiums, inspection charges, escrow amounts, and any required prepaid items to fulfill lender requirements or otherwise close this transaction.

 (b) At closing, Seller shall pay a sum not to exceed $ [Contracts.SellerClosingCosts] (if Buyer obtains financing through Seller’s approved lender) to be used at Buyers discretion to pay for closing costs, loan discount points, survey costs, and if allowed by lender, other costs to close including escrow and prepaid items. Buyer shall pay any additional fees, closing costs, insurance premiums, inspection charges or escrow amounts to fulfill lender requirements to otherwise close this transaction.

(4) Loan Obligations: Buyer agrees to (a) make application for said loan within [Contracts.LoanAppPeriod] ( ) days from the Binding Agreement Date, (b) immediately notify Seller of having applied for the loan and the name of the lender and (c) pursue qualification for and approval of the loan diligently and in good faith. Should Buyer not apply for the loan in the time specified above, Seller terminate the Agreement if Buyer does not within five (5) days after receiving written notice thereof cure the default by providing Seller with written evidence of loan application. Buyer agrees that a loan with terms consistent with those described herein shall satisfy this loan contingency. Buyer may also apply for a loan with different terms and conditions and close the transaction provided all other terms and conditions of this agreement are fulfilled, and the new loan does not increase the costs charged to Seller. Buyer shall be obligated to close this transaction if Buyer has the ability to obtain a loan with terms described herein and/or any other loan for which Buyer has applied and been approved.

______Buyer’s Initials Seller’s Initials

3.Earnest Money. Buyer has paid to Seller $ [Contracts.EarnestMoney] cash, money order, and/or check, the receipt of which

is hereby acknowledged by Seller, as earnest money, which earnest money is to be deposited in the general account of Seller and not in a separate escrow/trust bank account. This earnest money is to be applied as part payment of the purchase price at the time of closing, or otherwise is to be disbursed as provided in this Agreement. Seller shall deposit such earnest money as provided herein promptly after this Agreement has been accepted by all parties. Buyer acknowledges and agrees that Seller shall have the right to use such funds for whatever purpose Seller sees fit, and such earnest money will not be segregated or set apart in any manner.

Buyer recognizes and accepts the risk of depositing the earnest money with Seller. Buyer acknowledges that he has not relied upon the advice of Broker or Broker’s salespersons in deciding to pay such earnest money to Seller. Seller and Buyer acknowledge and agree that:

(A) Broker has no responsibility for, or control over, the earnest money deposited with Seller;

(B) Broker has no ability or obligation to insure that the earnest money is properly applied or deposited;

(D) Broker has no knowledge of the financial condition or financial stability of Seller. Seller and Buyer agree to

indemnify and hold harmless Broker and Broker’s salespersons against all claims, damages, losses, expenses or liability arising from the handling of the earnest money by Seller.

Seller shall promptly refund the earnest money to Buyer in the event the sale is not consummated:

(A) because of Seller’s inability, failure or refusal to perform any of Seller’s covenants herein; or

(B) because Buyer never had an unconditional obligation to close the purchase of the Property on the closing

date as the result of one or more contingencies in the Agreement not being fulfilled as of the closing date.

4.Closing and Possession.

A.Property Condition: Seller shall deliver Property clean and free of debris at time of possession. If the Property is destroyed or substantially damaged prior to closing, Seller shall promptly notify Buyer of the amount of insurance proceeds available to repair the damages and whether the Seller will complete repairs prior to closing. Buyer may terminate this Agreement not later than five (5) days after receiving such notice by giving written notice to Seller. If Buyer does not terminate this Agreement, Buyer shall receive at closing such insurance proceeds as are paid on the claim which are not spent to repair the damage.

B.Taxes: Real Estate taxes on said Property for the calendar year in which the sale is closed shall be prorated as of the date of closing. Seller shall pay the State of Georgia property transfer tax. Purchaser shall pay the State of Georgia intangible tax.

F.Closing Date: This transaction shall be closed either:[Check one]

 90 days from completion of the Homeowner Orientation

 120 days from completion of the Homeowner Orientation or

 150 days from the completionof the Homeowner Orientation.

The Homeowner Orientation shall be completed on or before [Contracts.OrientationDate] . If the Homeowner Orientation is completed by the aforementioned date, this transaction shall be closed on or before [Contracts.ClosingDate] or on such other date as may be agreed to by parties in writing. If the date of the Homeowner Orientation is delayed, the closing date shall be adjusted accordingly by an Amendment to this Agreement. In the event the loan described herein is unable to be closed on or before said date, or (2) Seller fails to satisfy valid title objections, Buyer or Seller may by notice to the other party (which notice must be received on or before closing date) extend this Agreement’s closing date seven (7) days from the above stated closing date. However, Seller shall have no liability for any delays in construction caused by strikes, acts of God or nature, or delays directly caused by Buyer’s change orders and/or selection of materials. In the event of such delays, the Closing Date may be extended, in the sole discretion of the Seller, by the number of days resulting from such delays, not to exceed 30 calendar days. Seller shall notify all parties immediately, in writing, of the cause of such delay and the new Closing Date.

G.Possession: Seller shall give Buyer possession of the Property at the time of closing. Buyer shall not move any household goods or other materials into the home on the Property until the home has been completed and the Buyer has paid the Seller the full Purchase Price.

H.Utility Services: Seller shall ensure gas and/or power services are operational. Buyer shall pay any and all costs and deposits required by the utility service companies to have services turned on in Buyer’s name. Utilities must be transferred to buyers name within five working days of closing.

I.Prorations: Seller and Buyer agree to prorate between themselves, as of the date of closing or the day of surrender of the Property by the Seller (whichever is later), association fees (if any) and all utility bills rendered subsequent to closing which include service for any period of time the Property was owned/occupied by Seller or any prior owner/occupant.

J.Closing Certifications: Buyer and Seller execute and deliver such certifications, affidavits, and statements as are required at closing to meet the requirements of the lender and of federal and state law.

3.Inspection.

A.Buyer acknowledges that the only criteria and standards that will be used in connection with inspections permitted by this Agreement and in compiling the “Walk Through List” are those set forth in the warranty described herein, if any, and if there is no warranty or criteria, then customary and generally accepted local building industry criteria and standards will be used. Buyer acknowledges that Seller is not required and will not perform any work which would exceed such criteria or standards and that Seller is not responsible for addressing or correcting conditions or circumstances located outside the Property even if affecting the Property. In lieu of repairing any item specified in the “Walk Through List” or in previous written notification, if not waived, Seller shall have the option of replacing such item within said standards or paying reasonable sums to Buyer with which to have those repairs made by the Buyer or a third party.

B.Buyer and/or his representatives shall have the right to enter the Property at Buyer’s expense and at reasonable times during normal business hours (8:00 A.M. to 5:00 P.M. Monday - Friday) to thoroughly inspect, examine, test and survey the Property. Buyer agrees to assume all responsibility for the acts of himself, and his representatives in exercising his rights under this paragraph and agrees to hold Seller, Broker and Broker’s independent contractor salespersons harmless for any damages or injuries resulting therefrom.

C.Buyer agrees to attend a pre-construction conference with Seller prior to Seller beginning construction on the Property.

Buyer also agrees to attend the “Zero-defect walk-through” prior to closing on the Property.

D.Buyer agrees to avoid conversations with workmen or in any way hinder their work, unless it has been requested that Buyer be there to assist in some phase of construction (i.e., to check colors, equipment, cabinets, etc.). It is understood and agreed by all parties to this Agreement that Seller shall not be governed by outside inspections other than those required by governmental agencies. Buyer agrees to deal only with Seller’s designated representative and to limit communications with said representative to normal business hours.

E.Whether or not Buyer has earlier inspected the Property, prior to Closing Buyer and Seller’s representatives shall conduct walk through inspection of the home and execute a “Walk Through List: specifying all items, including any noted in previous inspections, that remain to be completed in the home. Purchaser acknowledges that Seller will make its best effort to complete all of the items specified in the agree upon “Walk Through List” prior to the Closing, but the fact that any repairs, touch ups or adjustments are incomplete shall not constitute a valid reason for Buyer’s failure to close. Buyer further agrees that there shall be no withholding of any of Seller’s proceeds at Closing for any such “Walk Through List” items still outstanding at time of Closing. Seller shall not accept from Buyer or Broker “Walk Through Lists” of items to be completed until the official “Zero-Defect Walk Through” is conducted with Seller’s representative prior to Closing. Buyer acknowledges that the only criteria that will be used to compile the “Walk Through List” are set forth in the warranty described in paragraph 6 hereof and if no criteria are set forth, either as part of the warranty or in the event there is no written warranty, then customary and generally accepted area building industry criteria or standards will be used to compile the “Walk Through List”. Buyer also acknowledges that Seller is not required and will not perform any work which would exceed the approved or generally accepted criteria.

F.Except for items set forth in the “Walk Through List”, Buyer expressly acknowledges acceptance of all conditions or circumstances existing on the Property at the time of Closing, and waives and releases Seller, its agents, employees and subcontractors, Broker and Broker’s independent contractor salespersons, from any claim, rights of action or suits seeking rescission of this Agreement, damages or other relief based upon, or relating to, any condition or circumstances existing on or in the vicinity of the Property at the time of Closing, except as may be covered by express warranty, if any, given to Buyer by Seller. Upon satisfactory disposition of the items set forth in the “Walk Through List”, this acceptance, waiver and release shall apply to such items as well, except as may be covered by any express warranty.

3.Home Warranty. Buyer acknowledges that a copy of the warranty indicated below, if applicable, has been provided to Buyer or is available on request from Seller. (Select one. The others are not a part of this agreement.) In addition, Seller agrees to

transfer to Buyer at closing Seller’s interest in all manufacturer’s warranties which by their terms are transferable to Buyer.

______A. Builder’s limited warranty is offered with this home. Seller agrees to deliver to Purchaser at Buyer’s Initial closing Buyer’s Initial warranty that is not insured by a third party authorized to insure warranties under a

state or federal insurance risk retention act or statute. (One-Year Builder Warranty)

AND

______B. An insured limited warranty is offered with this home. Seller agrees to deliver to Buyer at Buyer’s Initial closing a copy of the Residential Warranty Corporation 2/10 warranty that is insured by a third

party authorized to insure warranties under a state or federal insurance or risk retention statute.

______C. No warranty is offered with this home.

Buyer’s Initial

7. Soil Treatment Bond. At closing, Seller shall provide Buyer a current Soil Treatment Certification/Bond. If any additional inspections and/or reports are requested by Buyer or Lender, any costs for such inspections and /or reports shall be paid by Buyer.

8.Title.

A.Examination. Buyer may, prior to closing, examine title and furnish Seller with a written statement of objections affecting the marketability of said title. Seller shall have reasonable time after receipt of such objections to satisfy all valid objections. If Seller fails to satisfy such valid objections within a reasonable time, then, at the option of Buyer evidenced by written notice to Seller, this Agreement shall be null and void. Marketable title as used herein shall mean title which a title insurance company licensed to do business in the State of Georgia will insure at its regular rates, subject only to standard exceptions unless otherwise specified herein. Buyer acknowledges that owner’s title insurance may be purchased at closing at Buyer’s expense.