Execution of Standard Spec Home Purchase Contract; Effect of Addendum.

Buyer/Buyers and Seller have, or intend to, enter Seller's standard Spec Home Purchase Contract. The terms and provisions of this Addendum are intended to supplement the Spec Home Purchase Contract. If a conflict becomes present between the Spec Home Purchase Contract and this Addendum, the provisions of this Addendum shall control.

Construction-to-Permanent Loan; Buyer Financing.

Buyer shall pursue and maintain approval for a construction-to-permanent loan for the transaction. Buyer shall timely provide Seller, lender, and closing/title company with all documents, approvals, inspections, draw requirements, and other information reasonably required to support the loan, lot closing, construction draws, and conversion to permanent financing.

Conveyance or Closing of Lot; Effective Date.

Within thirty (30) days of the date hereof, or such other date required by the lender, closing/title company, or written agreement of the parties, Buyer shall complete any required conveyance, transfer, or closing steps for the lot free and clear of all liens and encumbrances except those acceptable to Seller, lender, and closing/title company. The conveyance or closing shall take place with the closing/title company identified above, or with another closing/title company mutually approved by the parties.

Seller, at Buyer's sole cost and expense unless otherwise agreed in writing, may obtain or require a title search, title commitment, survey, lien payoff information, and related closing documents to confirm the state of title for the lot. If Buyer fails to complete the required lot conveyance or closing steps on or before the applicable transfer or closing date, this Addendum and the Spec Home Purchase Contract may terminate as provided in the contract, and Buyer shall reimburse Seller for out-of-pocket expenses incurred by Seller in connection with this Addendum or the Spec Home Purchase Contract from the date hereof until termination.

When the required lot conveyance or closing steps are completed, the Effective Date, as used in the Spec Home Purchase Contract for applicable date calculations, shall be the date agreed by the parties in writing or the date required by the construction-to-permanent loan closing documents. Thereafter, the house will be built on the lot and conveyed or otherwise completed for Buyer pursuant to the terms and conditions of the Spec Home Purchase Contract, this Addendum, and the construction-to-permanent loan requirements.

Additional Closing Notes.