HomeMy WebLinkAboutRigoberto I Chavez - Purchase and Sale Agreement Financne Addendum for Parcel No. 112282138Financing Addendum Commercial Brokers Association 2011
ALL RIGHTS RESERVED
CBA Form PS_FIN | Financing Addendum
Rev. 9/2020
Page |1 2
The following is part of the Purchase and Sale Agreement with Reference Date July 21, 2022
between Rigoberto Ibarra Chavez &/or Assigns (“Buyer”) and City of Pasco (“Seller”) regarding
the sale of the property located at NKA 10th Ave in the City of Pasco, Franklin County, Washington
(the “Property”).
X 1. NEW FINANCING. Buyer’s obligations under the Agreement are contingent on Buyer
obtaining new financing. Buyer shall submit a complete written application for financing for the
Property within five (5) business days after waiver or satisfaction of the Feasibility Period in
Section 23 of the Agreement, pay required costs and make a good faith effort to procure such
financing. Buyer shall not reject those terms of a commitment which provide for a loan amount of
at least $ or 75 % of the purchase price, interest not to exceed 5 % per annum, a payment
schedule calling for monthly payments amortized over not less than years, and total placement
fees and points of not more than % of the loan amount. The Agreement shall terminate and
Buyer shall receive a refund of the earnest money unless Buyer gives notice that this condition is
satisfied or waived on or before days (30 days, if not completed) following waiver or
satisfaction of the Feasibility Contingency in Section 23 of the Agreement. If Buyer fails to timely
submit a complete written application for financing, this condition shall be deemed waived.
2. ASSUMPTION OF EXISTING FINANCING.
a. Approval of Documents. Buyer’s obligations under the Agreement are contingent on Buyer's
assumption of a note and mortgage or deed of trust, or a real estate contract. Seller shall deliver
to Buyer within five (5) days after mutual acceptance of the Agreement a copy of all documents
relating to the obligations that Buyer will assume, including the note, deed of trust, mortgage or
real estate contract (or any other underlying debt instruments); any guaranties, non-recourse
carve-outs, or indemnity agreements; and any fixture filings or financing statements (the
“Underlying Loan Documents”). Buyer shall be deemed to have approved the Underlying Loan
Documents unless Buyer gives notice of disapproval during the Feasibility Period.
b. Consent to Assumption. Buyer shall submit a complete application for assumption of the
Underlying Loan Documents together with any required application fee no later than five (5) days
after the Feasibility Contingency Date. Upon Buyer's request, Seller shall assist Buyer by
requesting the lender’s consent to the assumption on Buyer's behalf. Buyer’s principals shall be
required to execute any reasonable guaranties and indemnities required by the lender. Unless
Buyer has obtained consent or waived this condition within days (30 days, if not completed)
after the Feasibility Contingency Date and provided Buyer has timely complied with its obligations
under this Addendum, this Agreement shall terminate and, Buyer shall receive a refund of the
earnest money.
c. Assumption Fees and Expenses. Buyer shall pay all costs and expenses attributable to the
assumption of the underlying indebtedness including all application fees, processing charges, and
assumption fees.
d. Release of Seller and Principals. Seller’s obligations under the Agreement shall be shall
not be (shall not be, if not completed) conditioned upon Seller and all guarantors or indemnitors
being released from their obligations arising under the Underlying Loan Documents for the period
on and after Closing.
3. SELLER FINANCING.
a. Debt Instruments. If Seller is financing a portion of the Purchase Price, unless different forms
are attached to this Agreement, Buyer shall execute and submit to the Closing Agent: (i) LPB Form
No. 28A- 05 Promissory Note (CBA Form N-1A) and the DUE ON SALE and COMMERCIAL PROPERTY
optional clauses in that form shall apply; (ii) LPB Form No. 20-05 Short Form Deed of Trust; and (iii)
CBA Form DTR Deed of Trust Rider. In addition, Buyer authorizes Seller and Closing Agent to file a
financing statement to perfect Seller's security interest in the personal property described in the
Deed of Trust Rider.
b. Payment Terms. Buyer shall pay a down payment in the total amount (including the Earnest
Money) of $ , or % of the Purchase Price (check and complete only one
Buyer Date
Seller Date
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Financing Addendum Commercial Brokers Association 2011
ALL RIGHTS RESERVED
CBA Form PS_FIN | Financing Addendum
Rev. 9/2020
Page |2 2
box). The balance of the Purchase Price shall be paid in accordance with the terms of the
Promissory Note, which shall bear interest at the rate of % per annum, and shall be payable as
follows:
Installment Payments (choose one)
No installment payments are required;
Monthly installments of principal and interest in an amount sufficient to fully amortize the
outstanding principal balance at the stated interest rate over years;
Monthly principal and interest installment payments totaling $ ;
Monthly installment payments of interest only;
other .
Payment Schedule (choose one, if applicable)
The installment payments shall commence on the first day of the first month after closing and
shall continue on the same day of each succeeding month until:
months from the date of closing;
on which date all outstanding principal and interest shall be due.
Buyer may may not (may, if not completed) prepay the outstanding principal balance
without premium or penalty. If Seller receives any monthly payment more than days (15 days if
not filled in) after its due date, then Buyer shall be in default and a late payment charge of $ or
% of the delinquent amount (5% of the delinquent amount if not filled in) shall be added to the
scheduled payment. The principal shall, at Seller's option, bear interest at the rate of % per
annum (18% or the maximum rate allowed by law, whichever is less, if not filled in) during any
period of Buyer's default. Buyer shall have days (5 days if not filled in) after written notice from
Seller to cure a default before Seller may declare all outstanding sums to be immediately due and
payable.
(Note to Buyer and Seller: If the Property is currently used primarily for agricultural purposes, then a non-
judicial foreclosure/forfeiture remedy is available to Seller only by using a real estate contract and is not
available with a deed of trust.)
4. ESTOPPELS/SNDAs. If Buyer or its lender require estoppel certificates or subordination,
nondisturbance and attornment agreements (“Estoppel/SNDAs”) from some or all of the non-
residential tenants at the Property, then Seller shall cooperate with Buyer to obtain them. The form
of the Estoppels/SNDAs shall be CBA Form PS_TEC, or any different form required by Buyer’s
lender which Buyer has delivered to Seller during the Feasibility Period. Promptly after the
Feasibility Period, Seller shall use commercially reasonable efforts and diligence to obtain the
Estoppel/SNDAs from affected tenants; provided, however, Seller shall not be required to incur any
liability or out-of-pocket expenses which are not reimbursed by Buyer. Buyer shall have no
separate contingency for receipt of the Estoppels/SNDAs other than as otherwise agreed by Seller
in writing.
5. ADDITIONAL PROVISIONS. The terms of the Agreement remain unchanged except as
supplemented in this Addendum or provided below:
Buyer Date
Seller Date
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