TITLE
AS IT THEN IS.
IF PURCHASER DOES NOT, WITHIN TEN (10) DAYS AFTER THE EXPIRATION
OF THE CURE PERIOD, SEND WRITTEN NOTICE TO SELLER OF ITS ELECTION TO TERMINATE
THIS AGREEMENT PURSUANT TO CLAUSE (A) OF THE PRECEDING SENTENCE, THEN: (X)
PURCHASER SHALL BE DEEMED TO HAVE ELECTED TO TAKE TITLE SUBJECT TO ANY AND ALL
TITLE DEFECTS, WITHOUT ANY REDUCTION IN THE PURCHASE PRICE; (Y) ALL TITLE
DEFECTS NOT REMOVED FROM THE COMMITMENT OR THE SURVEY WILL THENCEFORTH BE DEEMED
PERMITTED EXCEPTIONS; AND (Z) THIS AGREEMENT SHALL REMAIN IN FULL FORCE AND
EFFECT.
2.5
OTHER PERMITTED EXCEPTIONS.
IN ADDITION TO THOSE MATTERS SHOWN IN
THE COMMITMENT AND THE SURVEY WHICH BECOME PERMITTED EXCEPTIONS PURSUANT TO
SECTION 2.4 ABOVE, THE FOLLOWING SHALL ALSO BE DEEMED TO BE PERMITTED
EXCEPTIONS: (A) THE LEASES; (B) TAXES AND STANDBY FEES FOR THE YEAR IN WHICH
CLOSING OCCURS;
(C) LIENS AND ENCUMBRANCES ARISING AFTER THE DATE HEREOF TO
WHICH PURCHASER CONSENTS IN WRITING; AND (D) ANY LIENS OR ENCUMBRANCES OF A
DEFINITE OR ASCERTAINABLE AMOUNT, PROVIDED THAT SELLER CAUSES SUCH LIENS OR
ENCUMBRANCES TO BE INSURED AROUND SUCH THAT SAME DO NOT APPEAR AS AN EXCEPTION
IN THE OWNER'S TITLE INSURANCE POLICY ISSUED TO PURCHASER PURSUANT TO THE
COMMITMENT.
2.6
OWNER TITLE POLICY.
SUBJECT TO THE PROVISIONS OF SECTION 2.4, ON
THE CLOSING DATE SELLER SHALL CAUSE THE TITLE COMPANY TO ISSUE AN OWNER'S TITLE
INSURANCE POLICY AT SELLER'S COST INSURING FEE SIMPLE TITLE IN PURCHASER AS OF
THE CLOSING DATE, IN ACCORDANCE WITH THE COMMITMENT, SUBJECT ONLY TO THE
PERMITTED EXCEPTIONS; PROVIDED, HOWEVER, THAT SELLER SHALL HAVE NO OBLIGATION TO
PAY ANYTHING OTHER THAN THE BASIC PREMIUM FOR SUCH TITLE INSURANCE POLICY.
IF
PURCHASER DESIRES TO OBTAIN A MODIFICATION OF THE "SURVEY EXCEPTION" OR OTHER
MODIFICATION OR ENDORSEMENT, SAME SHALL BE AT THE SOLE EXPENSE OF PURCHASER.
2.7
EXPIRATION OF INSPECTION PERIOD.
IT IS THE INTENT OF THE PARTIES
THAT PURCHASER'S RIGHT TO TERMINATE THIS AGREEMENT PURSUANT TO SECTION 2.4(A)
SHALL EXPIRE UPON THE EXPIRATION OF THE INSPECTION PERIOD, NOTWITHSTANDING THAT
THE TITLE REVIEW PERIOD, THE CURE PERIOD OR ANY ELECTION PERIOD MAY EXTEND
BEYOND THE EXPIRATION OF THE INSPECTION PERIOD.
ACCORDINGLY, NOTWITHSTANDING
ANYTHING CONTAINED HEREIN TO THE CONTRARY, IF PURCHASER HAS NOT TERMINATED THIS
AGREEMENT PURSUANT TO SECTION 2.4(A) PRIOR TO THE EXPIRATION OF THE INSPECTION
PERIOD, THEN PURCHASER SHALL NO LONGER HAVE ANY RIGHT TO TERMINATE THIS
AGREEMENT UNDER SECTION 2.4(A), AND IN SUCH EVENT PURCHASER SHALL BE BOUND TO
ACCEPT TITLE TO THE PROPERTY
3
WITHOUT ANY REDUCTION IN THE PURCHASE PRICE AND WITH THE TITLE DEFECTS NOT
REMOVED FROM THE COMMITMENT BEING DEEMED PERMITTED EXCEPTIONS; PROVIDED,
HOWEVER, THAT PURCHASER MAY, AFTER EXPIRATION OF THE INSPECTION PERIOD, OBJECT
TO NEW TITLE DEFECTS AS SET FORTH IN SECTION 2.8 BELOW.
2.8
NEW TITLE DEFECTS.
IN THE EVENT THAT, AFTER THE EXPIRATION OF THE
INSPECTION PERIOD AND PRIOR TO CLOSING, A REVISION OF SCHEDULE B TO THE TITLE
COMMITMENT OR THE SURVEY REVEALS AN ADVERSE MATTER OBJECTIONABLE TO PURCHASER
THAT