WHEREAS, ________________________________________________ as Seller and
______________________________________ as Purchaser have entered in to a certain
purchase and sales agreement even date herewith, the parties fully understand,
acknowledge an agree as follows:

1. Both Seller and Purchaser are fully aware that the mortgage(s) deeds of trust
securing the property located at ______________________ contain(s) provisions prohibiting
the transfer of any interest in the property without satisfying the principal balance
remaining on the underlying loans and/or obtaining the lender's prior written consent (i.e.,
a "due-on-sale" clause), and that this transaction may violate said mortgage. Seller
specifically understands that this completely at this time, and that this loan will remain
in Seller's name and may continue to appear on Seller's credit report.


2. Seller and Purchaser execute this disclosure form after having had the opportunity to
seek legal counsel as to the legal and financial implications of due-on-sale clause. The
parties agree and understand that if said due on sale clause is enforced by the holders of
said mortgages, the entire balance due under said mortgage/deeds of trust will have to be
paid off. In this event, Seller and Purchaser agree to take all reasonable steps to satisfy
said lender, including both parties taking steps to obtain financing and/or Purchaser submitting
an application to formally assume liability for said obligations. Purchaser understand that in
the event that the underlying debt is not paid off, the lender holding the deeds of trust may
foreclose the property which will extinguish Purchaser's interest under the Installment Land
Contract.

3. Seller and Purchaser hereby agreed to defend, indemnify and hold all parties involved
in this transaction harmless from any liability in the event that the holders of the mortgages
and/or deeds of trust on the aforementioned property are called due and payable.

___________________________________________
Seller

___________________________________________
Purchaser

 

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