SCENARIO 2

Use TREC Form 20-14, 40-8, 36-8 and 10-6

Marc and Tamara Lira listed their house for sale to move to a larger home to accommodate their growing family. They agree to purchase the home on Lot 5 Block 2 of Elk Hills subdivision in Erath County for $305,000 subject to receiving proceeds from sale of their home at 2012 Willow Street Stephenville on or before closing date. James and Cindy Haynes agree to the contingency but if they receive another offer they will give the Liras seven days notice to waive the contingency by depositing another $4000 earnest money in addition to the $2000 previously deposited. Sellers will pay Cross Timbers Title to issue a title policy giving buyers 10 days to object to title problems after receipt of the commitment.

The parties also agree that the contract will be subject to buyers obtaining a fifteen year loan for $220,000 at no more than 5% interest and maximum of 2% loan fees. The buyers are prequalified and agree to notify buyers if financing is unavailable within 20 days. Closing is to be within 45 days with possession at closing.

The property is subject to mandatory membership in a homeowner's association. The buyers have received the association information and agree to pay up to $50 in association expenses.

The parties elect to submit disputes to mediation. Buyers will pay $400 for the right to terminate the contract within five days with the money applied to purchase price if the option is not exercised.Sellers will pay up to $325 for a residential services contract. Sellers do not agree to pay buyer's expenses but agree to replace the backyard fence which has several missing boards with a new fence of similar construction.Buyers are allowed to walk through the house four hours prior to closing.

The buyers will obtain and pay for a new survey within 6 days of the contract. The house is less than five years old. The sellers provided the property condition notice through their broker Dan Adams of Coldwell Banker who agreed to a 6% commission.A sales associate in his office Marc Harmon secured the contract of sale with the Liras.