SCENARIO 5

Use TREC Form 25-12, 12-3, 41-2, OP-L and 28-2

Mack Mason a widower agrees to sell 214 acres described by metes and bounds to Tanner and Lisa Tyson for $426,000 with the purchase price to be adjusted by $1990 per acre depending on a new survey for which buyers will pay within ten days. The adjustment will be made in the cash portion of the price.

The buyers will borrow $100,000 from a conventional lender and assume the balance of Mr. Mason's Note to First Financial Bank with a principal balance of $240,000 with monthly payments of $1935. Buyers agree to pay no more than $325 loan assumption fee or interest rate increase above 6%. The sale price will be adjusted if the loan balance varies from the contract at closing.The buyer also insists upon release from liability on the note as part of the agreement. The buyers agree to provide verification of employment, credit report, verification of funds on deposit and a financial statement within seven days.

The Tysons plan to grow organic produce on the property so they want an environmental inspection with twenty days to cancel the contract if the report is unfavorable.

Seller has provided the property condition notice required by section 5.008 of the Texas Property Code and will submit the lead based paint disclosure notice with the contract.The seller will pay Lawyer's Abstract to issue an owner's title policy and buyers will have ten days from receipt to object to problems. Buyers are willing to assume the risk of rollback taxes unless actions of the seller prior to closing cause a change in tax treatment of the property. The property is not in an agricultural development district nor is the property subject to any government programs.There are no existing leases.

Seller will pay up to $325 for a residential services contract and the parties want to mediate any disputes. Buyers will pay $600 for an option to terminate the contract within six days which will be applied to the purchase price..

The buyers have deposited $3000 earnest money and agree to deposit another $3000 within fifteen days of the effective date of the contract. Possession shall change at closing and the parties agree to set closing forty days away. Larry Allen is the listing broker with a 5% fee agreement which he agrees to split equally with the buyer's broker Lance Brock.