P02-Purchase Price/Down Payment

                        

Objective Form

02.1  The purchase price for the Property shall be ______________
     ($_____________) payable as follows:
     a.  The sum of ________________________ ($__________________)
         as a down payment upon the execution of this Agreement,
         receipt of which is hereby acknowledged by Seller.
     b.  The sum of _______________________ ($___________________)
         upon completion of some contingency (i.e.--management
         approval, title clearance, survey, etc.).
     c.  The balance of the purchase price of ____________________
         ($______________) shall be payable by Buyer to Seller by
         cash, certified check, or other cash equivalent, at
         closing.

Alternatives

    Where the price is being set on a per acre basis the form as
follows:


         "The purchase price for the property shall be $ ________
         per acre, payable as follows:"
    In certain instances either Buyer or Seller may find it
desirable to allocate the purchase price between land, buildings
and personalty for tax considerations.  There the clause might
include a general or specific breakdown of that purchase price.
    In certain rare instances the parties may agree to a purchase
price determined by an independent outside party, commonly an inde-
pendent fee appraiser.  The following is an example of such a clause.
         "The purchase price of the property shall be determined
         in the following manner.  Each party shall choose an
         independent fee apraiser having the designation of MAI
         by the American Institute of Real Estate Appraisers.
         The appraisers so chosen shall jointly choose a third 
         appraiser having such a designation.  Each appraiser 
         shall conduct an independent appraisal (without con-
         sultation between them) of the fair market value of
         the Property as of the date hereof, which opinions of
         value shall be submitted in writing.  The purchase
         price shall be the average of the three appraisals."


    Such provision can become very complex with provisions for
further qualification of the appraisers, veto power over the ap-
praisers chosen, a listing of appraiser's instructions and
provisions for reappraisals or appeal if the appraised values of
each appraiser deviate by a certain amount.