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This is a legal size form. When printing this page select PRINT-Properties-Legal-OK. Be sure to save your completed files with a NEW FILE NAME so as not to save over the blank original! A. Settlement

The settlement is completed by filling a check circle inside the box “A,” and entering the amount of money that you plan to pay to the agent. The settlement amount must be less than (for one home) or equal to (for two homes) the amount you are committing to pay. The amount you enter, including the initial down payment, may be more than the home value. The amount you enter should not be less than what you have spent so far. After the down payment, you can continue to add money if you wish to. The sum of the amounts you enter will not increase your total obligation to pay anything. Only the down payment, your down payment percentage, and any other down payment required for the home, such as down payments and closing costs, is included in this total amount. A. Down Payment The down payment amount is the actual money you plan to use to purchase the home. The down payment percentage, which is the percentage of the home's purchase price that you pay, must be at least (for one home) 30%, and it must be at least 0.20. The home's market value may be higher than that determined using this formula, in which case you must increase the down payment amount accordingly. As with the amount of money that you've put down as a down payment, you can add money if you wish to. The first down payment must be for the amount of money that you plan to spend to purchase the home. As a rule, the down payment required for the home will be equal to the total of all your other down payments, that the down payment you make at this point is less than the amount of money that you intend to spend to purchase the home, plus the amount of any money that might be required to satisfy the other down payment terms. Any money in excess of the total amount of down payments you want to make before the time you complete the agreement, which is the closing date, can be applied to any subsequent down payment amount needed. In order to prevent fraud from occurring when a person takes on a substantial amount of debt (for instance, taking out a mortgage that exceeds his or her income), an additional clause requires that for any additional down payments that need to be made before the closing date, these down payments must come from all funds other than the down payment made on the previous home. Be sure to keep all this information in your records.

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