RD 440-34 Option to Purchase Real Estate

Form RD 440-34
(Rev. 02-05)

Position 5
UNITED STATES DEPARTMENT OF AGRICULTURE
RURAL DEVELOPMENT
FARM SERVICE AGENCY

FORM APPROVED
OMB NO. 0575-0189
Exp. Date: MM/DD/YY

OPTION TO PURCHASE REAL PROPERTY
in hand paid and other valuable consideration, the
1. In consideration of the sum of $
receipt and sufficiency of which are hereby acknowledged, the undersigned (hereinafter called the "Seller"), who covenants to be the
owner thereof, hereby, for the Seller and the Seller's heirs, executors, administrators, successors and assigns, offers and agrees to sell
and convey to

(Name and Address)

(hereinafter called the "Buyer"), and hereby grants to the said Buyer the exclusive and irrevocable option and right to purchase, under
the conditions hereinafter provided, the following-described property, located in

:
County, State of
(Insert here full and complete legal description, including volume and page where recorded, of the property including any water rights
and water stock being purchased.)

A federal agency may not conduct or sponsor, and a person is not required to respond to, nor shall a person be subject to a penalty for failure to comply with a collection of
information subject to the requirements of the Paperwork Reduction Act unless that collection of information displays a currently valid OMB Control Number. The OMB Control
Number for this information collection is 0575-0189. Public reporting for this collection of information is estimated to be approximately 30 minutes per response, including the
time for reviewing instructions, searching existing data sources, gathering and maintaining the data needed, completing and reviewing the collection of information. All
responses to this collection of information are voluntary. However, in order to obtain or retain a benefit, the information in this form is required under Section 515 Rural Rental
Housing, which includes Congregate Housing, Group Homes, and Rural Cooperative Housing. Rural Development has no plans to publish information collected under the
provisions of this program. Send comments regarding this burden estimate or any other aspect of this collection of information, including suggestions for reducing this burden to:
Information Collection Clearance Officer, Rural Development Innovation Center, Regulations Management Division at [email protected]

The title to said property is to be conveyed free and clear of all encumbrances except for the following reservations,
exceptions and leases, and no others:
(Insert here a full statement of all reservations, exceptions and leases, including in the case of leases, the date of the termination of the
lease, the correct name(s) and address(es) of the lessee(s) and, if recorded, the place of recordation)

Rural
2. The option is given to enable the Buyer to obtain a loan made by the United States of America, acting through the
Farm Service Agency, hereinafter called
Rural Business-Cooperative Service;
Housing Service;
Rural Utilities Service;
the ''Government'' for the purchase of said property. It is agreed that the Buyer's efforts to obtain a loan constitute a part of the
consideration for this option and any downpayment will be refunded if the loan cannot be processed by the Government.
3. The total purchase price for said property is $

; said amount

mentioned in paragraph 1.
includes
excludes the $
4. The Seller agrees to pay all expenses of title clearance including, if required, abstract or certificate of title or policy of title
insurance, continued down to the date of acceptance of this option and thereafter continued down to and including date of recordation
of the deed from the Seller to the Buyer, costs of survey, if required, and attorney's fees; and the Seller agrees that, except as herein
provided, all taxes, liens, encumbrances or other interests in third persons will be satisfied discharged, or paid by the Seller including
stamp taxes and other expenses incident to the preparation and execution of the deed and other evidences of title. Title evidences will
be obtained from persons and be in such form as the Government shall approve.
(Strike inapplicable language above or insert herein any different agreement regarding the paying of title clearance charges)

5. The Seller also agrees to secure for the Buyer, from the records of the Farm Service Agency, aerial surveys of the property
when available, all obtainable information relating to allotments and production history and any other information needed in
connection with the consideration of the proposed purchase of the property.
6. The Seller further agrees to convey said property to the Buyer by general warranty deed (except where the law provides
otherwise for conveyances by trustees, officers of courts, etc.) in the form, manner and at the time required by the Government,
conveying to the Buyer a valid, unencumbered, indefeasible fee-simple title to said property meeting all requirements of the
Government; that the purchase price shall be paid at the time of recording such deed; and that said lands, including improvements,
shall be delivered in the same condition as they now are, customary use and wear excepted.
Taxes, water assessments and other general and special assessments of whatsoever nature for the year in which the closing of
7.
the transaction takes place shall be prorated as of the date of the closing of the transaction, it being expressly agreed that for the
purpose of such proration the tax year shall be deemed to be the calendar year. If the closing of the transaction shall occur before the
tax rate is fixed, the apportionment of taxes shall be on the basis of the tax rate for the next preceding year applied to the latest
assessed valuation.
(Insert here any different tax agreement)

8.

This option may be exercised by the Buyer, at any time while the offer herein shall remain in force, by mailing, telegraphing or

delivering in person a written notice of acceptance of the offer herein to

,

at

,

, in the city of

County of

,

, State of

months from the date hereof and shall remain
The offer herein shall remain irrevocable for a period of
in force thereafter until one (1) year from the date hereof unless earlier terminated by the Seller. The Seller may terminate
months irrevocable period provided herein by giving to the Buyer ten
this offer at any time after the
(10) days written notice of intention to terminate at the address of the Buyer. Acceptance of this option by the Buyer within ten (10)
days after such notice is received by the Buyer shall constitute a valid acceptance of the option.
Loss or damage to the property by fire or from an act of God shall be at the risk of the Seller until the deed to the Buyer has been
9.
recorded, and in the event that such loss or damage occurs, the Buyer may, without liability, refuse to accept conveyance of title, or
may elect to accept conveyance of title, in which case there shall be an equitable adjustment of the purchase price.
10. The Seller agrees that, irrespective of any other provision in this option, the Buyer, or the Buyer's assignees, may, if the option
is accepted, without any liability therefore refuse to accept conveyance of the property described herein if the foresaid loan cannot be
made or insured because of defects in the title to other land now owned by, or being purchased by, the buyer.
11. The Seller agrees to furnish, at Seller's expense, to the Buyer a certificate from a reliable firm certifying that the following
described building(s) covered by this option (a) is now free of termite infestation and (b) either is now free of unrepaired termite
damage or has suffered unrepaired termite damage which is specifically described in the certificate.
12. The Seller agrees to furnish, at the Seller's expense, to the Buyer evidence from the Health Department or a reliable and competent
source that the waste disposal system for the dwelling is functioning properly, and the water supply for domestic use meets State Health
Department requirements. This evidence must be in the Agency Office before a loan will be approved.
13. The Seller hereby gives the Government or its agents consent to enter on said property at reasonable times for the purpose of
inspecting or appraising it, in connection with the making of a loan to purchase the property.

14.

Insert here conditions peculiar to this particular transaction.

(Sellers Telephone Number)

IN WITNESS WHEREOF, the Seller and the Buyer have set their hands and seals this
of

, 20

day

.

WITNESSESS:
(Seller)*
(Seller)*
(Buyer)*
(Buyer)*

*(Indicate marital status of Seller as ''married'', ''legally separated'', ''unmarried'', after signature)
(over)

(For use if Seller is a corporation)
IN WITNESS WHEREOF, the Seller has caused its corporate name to be hereunto subscribed by its
President, and its duly attested corporate seal to be hereunto affixed by its
Secretary, at

, State of

on the

day of

, 20

.

(CORPORATE SEAL)
(Name of Corporation)
ATTEST:

By:
Secretary.

ACKNOWLEDGMENT

President.