SCENARIO 4 Use TREC Form 20-14, OP-M and 40-8 Carl and Danita Powers agree to buy Lot 14 of Block 1 in the Greenwood Addition to the City of Stephenville from Karen Shivers who is divorced. The agreed purchase price is $118,000 and the Powers deposit $3000 earnest money with King Abstract which will issue the title policy. Ms. Shivers will pay for the owners title policy and allow the Powers seven days to review the title commitment and deed restrictions. Thirty days should be adequate time to prepare for closing with possession transferred at closing. There is no homeowners association and the house was built after 1978. The buyers have reviewed the property disclosure form required by Texas Property Code Sec. 5.008. Ms. Shivers has a survey which is only a few years old and agrees to provide it within six days but the buyers will pay for a new one if the lender requires it. Ms. Shivers agreed to sell a Craftsman riding lawn mower (serial number 446F282RGG) to the Powers for $900. The Powers have pre-qualified for a loan but the parties agree to make the sale subject to buyers obtaining suitable financing. The buyers will apply for a conventional loan for 80% of the purchase price amortized for fifteen years with a maximum of 5.5% interest and no more than 2% in loan fees. Buyers will give notice within 25 days if financing is not available on these terms. The seller does not agree to pay any expenses on behalf of buyers required by lenders but will pay up to $300 for a residential services contract. The parties do not want to elect for mediation and they agree to a seven day option to terminate the contract in exchange for $400 which will be applied to the purchase price. Amy Jones is an independent broker who had listed the property for a 6% commission. Ben Burke a sales associate at Century 21 acted as subagent for the seller when he showed the property to his customers the Powers.