Commitment for owner's title insurance policy.
1. Seller shall deliver or cause to be delivered to purchaser or purchaser's agent, not less than five days prior to the time of closing, a title commitment for an owner's title insurance policy issued by the _________ Title Insurance Company in the amount of the purchase price, covering title to the real estate on or after this date, showing title in the intended grantor subject only to (a) the general exceptions contained in the policy, (b) the title exceptions set forth above, and (c) title exceptions pertaining to liens or incumbrances of a definite or ascertainable amount which may be removed by the payment of money at the time of closing and which the seller may so remove at that time by using the funds to be paid upon the delivery of the deed (all of which are referred to in this agreement as the permitted exceptions). The title commitment shall be conclusive evidence of good title as shown in it as to all matters insured by the policy, subject only to the exceptions as stated in it. Seller also shall furnish purchaser an affidavit of title in customary form covering the date of closing and showing title in seller subject only to the permitted exceptions in foregoing items (b) and (c) and unpermitted exceptions, if any, as to which the title insurer commits to extend insurance in the manner specified in paragraph 2 below.
2. If the title commitment discloses unpermitted exceptions, seller shall have 30 days from the date of its delivery to have the exceptions removed from the commitment or to have the title insurer commit to insure against loss or damage that may be occasioned by such exceptions, and, in such event, the time of closing shall be 35 days after delivery of the commitment or the time specified in paragraph 5 on the front page of this agreement, whichever is later. If seller fails to have the exceptions removed, or in the alternative, to obtain the commitment for title insurance specified above as to such exceptions within the specified time, purchaser may terminate this contract or may elect, upon notice to seller within 10 days after the expiration of the 30-day period, to take title as it then is with the right to deduct from the purchase price liens or incumbrances of a definite or ascertainable amount. If purchaser does not so elect, this contract shall become null and void without further actions of the parties.
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