SCENARIO 3

Use TREC Form 20-14, 26-7

Dale and Kyra Logan agree to sell their house on Lake Proctor to Bill King a single man for $77,000.The parties agree that the sellers will finance $63,000 and Mr. King will deposit $10,000 earnest money with Comanche County Abstract which will issue the title policy for the property on Lot 5 Block 3 of Highland View subdivision in Comanche County. Sellers will pay for the owner's policy and buyer will have seven days to object after receiving the commitment. Sellers are removing a portable building located on the property. Closing will be within thirty days with possession changing at closing.

Within seven days of the effective date of the contract Mr. King agrees to provide verification of employment, a financial statement and a credit report. The interest rate will be 5% fixed rate for a ten year term with monthly payments of $668.21 per month beginning thirty days after closing. Mr. King may resell the property without consent of the Logans and an escrow account will not be required.

Buyer has received the Texas Property Code Notice required under section 5.008, the property is not subject to membership in a homeowner's association and it is less than fifteen years old. Sellers will provide an existing survey within three days and buyer will pay for a new one if the current one is unacceptable.

Sellers will pay up to $250 for a residential services contract but no buyer's expenses. The parties elect mediation to resolve any disputes. Mr. King pays $200 for a termination option within ten days which will not be applied to the purchase price.

Jeni Swartz listed the property for a 6% commission and the buyer contacted her directly from the telephone number on her sign located on the property