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EXPENSES: At closing, the earnest money must be applied first to any cash downB.payment, then to Buyer's Expenses and any excess refunded to Buyer. If no closingoccurs, escrow agent may: (i) require a written release of liability of the escrow agentfrom all parties, (ii) require payment of unpaid expenses incurred on behalf of a party,and (iii) only deduct from the earnest money the amount of unpaid expenses incurred onbehalf of the party receiving the earnest money.DEMAND: Upon termination of this contract, either party or the escrow agent may sendC.a release of earnest money to each party and the parties shall execute counterparts of328 Kings CourtPasadena, TX 78705TEST 2 Answer Key
TREC NO. 20-12Initialed for identification by Buyerand SellerProduced with zipForm® by zipLogix 18070 Fifteen Mile Road, Fraser, Michigan 48026 TAR 1601Page 7 of 94-28-2014Contract Concerning(Address of Property)the release and deliver same to the escrow agent. If either party fails to execute therelease, either party may make a written demand to the escrow agent for the earnestmoney. If only one party makes written demand for the earnest money, escrow agent shallpromptly provide a copy of the demand to the other party. If escrow agent does notreceive written objection to the demand from the other party within 15 days, escrow agentmay disburse the earnest money to the party making demand reduced by the amount ofunpaid expenses incurred on behalf of the party receiving the earnest money and escrowagent may pay the same to the creditors. If escrow agent complies with the provisions ofthis paragraph, each party hereby releases escrow agent from all adverse claims related tothe disbursal of the earnest money.D. DAMAGES: Any party who wrongfully fails or refuses to sign a release acceptable to theescrow agent within 7 days of receipt of the request will be liable to the other party forliquidated damages in an amount equal to the sum of: (i) three times the amount of theearnest money; (ii) the earnest money; (iii) reasonable attorney's fees; and (iv) all costs ofsuit.E. NOTICES: Escrow agent's notices will be effective when sent in compliance with Paragraph21. Notice of objection to the demand will be deemed effective upon receipt by escrowagent.19. REPRESENTATIONS: All covenants, representations and warranties in this contract surviveclosing. If any representation of Seller in this contract is untrue on the Closing Date, Sellerwill be in default. Unless expressly prohibited by written agreement, Seller may continue toshow the Property and receive, negotiate and accept back up offers.20. FEDERAL TAX REQUIREMENTS:If Seller is a "foreign person," as defined by applicablelaw or if Seller fails to deliver an affidavit to Buyer that Seller is not a "foreign person," thenBuyer shall withhold from the sales proceeds an amount sufficient to comply with applicabletax law and deliver the same to the Internal Revenue Service together with appropriate taxforms. Internal Revenue Service regulations require filing written reports if currency inexcess of specified amounts is received in the transaction.