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 AS IT THEN IS WITHOUT ANY
REDUCTION IN THE PURCHASE PRICE; (Y) ALL TITLE DEFECTS NOT REMOVED FROM THE
COMMITMENT WILL THENCEFORTH BE DEEMED PERMITTED EXCEPTIONS; AND (Z) THIS
AGREEMENT SHALL REMAIN IN FULL FORCE AND EFFECT. ANYTHING TO THE CONTRARY IN
THIS AGREEMENT NOTWITHSTANDING, SELLER SHALL HAVE NO AFFIRMATIVE OBLIGATION
HEREUNDER TO EXPEND ANY FUNDS OR INCUR ANY LIABILITIES IN ORDER TO CAUSE ANY
MATTERS SHOWN IN THE COMMITMENT TO BE REMOVED, CURED OR INSURED OVER, EXCEPT
THAT SELLER SHALL PAY OR DISCHARGE ANY LIEN OR ENCUMBRANCE ARISING AFTER THE
DATE HEREOF AND VOLUNTARILY CREATED OR ASSUMED BY SELLER AND NOT CREATED BY OR
RESULTING FROM THE ACTS OF PURCHASER OR OTHER PARTIES NOT RELATED TO SELLER. IF
THE COMMITMENT (OR ANY SUBSEQUENT REVISION THEREOF) DISCLOSES EXCEPTIONS OTHER
THAN THE PERMITTED EXCEPTIONS, AND OTHER THAN THOSE WHICH SELLER HAS AGREED TO
INSURE AGAINST, PAY OR DISCHARGE, THEN UNLESS PURCHASER AGREES TO ACCEPT TITLE
AS IT THEN IS WITHOUT REDUCTION OF THE PURCHASE PRICE, SELLER MAY, AT ITS
OPTION, TERMINATE THIS AGREEMENT, IN WHICH EVENT THE EARNEST MONEY SHALL BE
RETURNED TO PURCHASER AS PURCHASER'S SOLE REMEDY UNDER THIS AGREEMENT.
2.4
OTHER PERMITTED EXCEPTIONS. IN ADDITION TO THE MATTERS SHOWN IN
THE COMMITMENT WHICH BECOME PERMITTED EXCEPTIONS PURSUANT TO THE SECTION 2.2 OR
2.3 ABOVE, THE FOLLOWING SHALL ALSO BE DEEMED TO BE PERMITTED EXCEPTIONS:
(A) THE CONDOMINIUM DOCUMENTS; (B) THE LIENS AND SECURITY INTERESTS CREATED BY
THE DEED OF TRUST, THE ASSIGNMENT AND ANY OTHER LOAN DOCUMENTS; (C) THE LIENS
AND SECURITY INTERESTS CREATED BY THE DOCUMENTS EVIDENCING AND SECURING THE
PURCHASE MONEY FINANCING; (D) TAXES AND ASSESSMENTS FOR THE YEAR IN WHICH
CLOSING OCCURS; (D) LIENS AND ENCUMBRANCES ARISING AFTER THE DATE HEREOF TO
WHICH PURCHASER CONSENTS IN WRITING; AND (E) 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.
2.5
OWNER TITLE POLICY. SUBJECT TO THE PROVISIONS OF SECTION 2.3,
PROMPTLY AFTER 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.
2.6
EXPIRATION OF INSPECTION PERIOD. IT IS THE INTENT OF THE PARTIES
THAT THE RIGHT GRANTED TO PURCHASER IN SECTION 2.3(A) TO TERMINATE THIS
AGREEMENT SHALL EXPIRE UPON THE EXPIRATION OF THE INSPECTION PERIOD,
NOTWITHSTANDING