CURE.
SELLER'S FAILURE TO RECEIVE
NOTICE OF BUYER'S ELECTION BY SUCH TIME SHALL BE DEEMED AN ELECTION BY BUYER TO
CLOSE AND TO ACQUIRE THE PROPERTY, SUBJECT TO THE DISAPPROVED EXCEPTIONS (WHICH
SHALL THEREBY BECOME "PERMITTED EXCEPTIONS").
NOTWITHSTANDING THE FOREGOING,
SELLER SHALL TAKE ALL ACTIONS NECESSARY TO REMOVE AT CLOSING ALL MORTGAGES,
DEEDS OF TRUST, MECHANICS' LIENS CAUSED BY, THROUGH OR UNDER SELLER OR SIMILAR
LIENS ON THE PROPERTY OTHER THAN THE LIEN OF TAXES NOT YET DUE OR PAYABLE AND
LIENS NOT CAUSED BY, THROUGH OR UNDER SELLER ("LIENS").
3.1.4
IF BUYER PROPERLY ELECTS TO TERMINATE THIS AGREEMENT AS PROVIDED IN
THIS PARAGRAPH 3.1, THIS AGREEMENT SHALL TERMINATE AND THE DEPOSIT SHALL BE
RETURNED TO BUYER AS PROVIDED IN PARAGRAPH 6.2.
3.1.5
A DISAPPROVED EXCEPTION SHALL BE CONSIDERED TO HAVE BEEN CURED IF
THE TITLE COMPANY AGREES TO ISSUE THE TITLE POLICY TO BUYER WITHOUT THAT
DISAPPROVED EXCEPTION BEING REFLECTED AS AN EXCEPTION TO COVERAGE UNDER THE
TITLE POLICY OR WITH SUCH DISAPPROVED EXCEPTION REFLECTED BUT INSURED OVER VIA
AN ENDORSEMENT APPROVED BY BUYER IN ITS SOLE DISCRETION.
3.1.6
FOR PURPOSES OF THIS PARAGRAPH 3.1, "REASONABLE EFFORTS" SHALL NOT
INCLUDE ANY OBLIGATION OF SELLER TO INCUR ANY EXPENSE WHATSOEVER IN CONNECTION
WITH CORRECTING ANY DISAPPROVED EXCEPTION, NOR SHALL SELLER'S NOTICE TO BUYER
REGARDING ANY OF THOSE ITEMS OBLIGATE SELLER TO INCUR ANY EXPENSE, EXCEPT TO THE
EXTENT REQUIRED TO REMOVE ANY LIEN OR TO THE EXTENT EXPRESSLY STATED OTHERWISE
IN THE NOTICE.
NOTHING IN THIS PARAGRAPH 3.1 SHALL OBLIGATE BUYER TO EXPEND ANY
FUNDS TO CURE A DISAPPROVED EXCEPTION(S).
3.1.7
IF NEW TITLE EXCEPTIONS (COLLECTIVELY, THE "NEW EXCEPTIONS")
ENCUMBERING THE PROPERTY ARE RAISED BY THE TITLE COMPANY AFTER THE EXPIRATION OF
THE DUE DILIGENCE PERIOD AND PRIOR TO THE DATE OF CLOSING, SELLER SHALL NOTIFY
BUYER OF ANY NEW EXCEPTIONS UPON BECOMING AWARE OF SAME AND SO LONG AS SUCH NEW
EXCEPTIONS ARE NOT A RESULT OF THE ACTIONS OF BUYER OR ITS AGENTS, EMPLOYEES
4
OR CONTRACTORS, AND IF THE NEW EXCEPTIONS ARE NOT ACCEPTABLE TO BUYER, EITHER:
(I) SELLER, AT ITS OPTION, WILL ARRANGE FOR THE TITLE COMPANY TO REMOVE FROM OR
ENDORSE OVER THE NEW EXCEPTIONS IN BUYER'S TITLE POLICY WITH AN ENDORSEMENT
ACCEPTABLE TO BUYER IN ITS SOLE DISCRETION; OR (II) IF SELLER FAILS TO EXERCISE
ITS OPTION UNDER (I) ABOVE, BUYER MAY ELECT BY WRITTEN NOTICE TO SELLER AND
ESCROW HOLDER, TO BE RECEIVED NO LATER THAN THE CLOSING DATE, EITHER TO
TERMINATE THIS AGREEMENT AND, UPON SUCH ELECTION, BUYER SHALL RECEIVE A REFUND
OF THE DEPOSIT OR TO CLOSE AND TO ACQUIRE THE PROPERTY, SUBJECT TO THE NEW
EXCEPTIONS, WHICH SELLER SHALL HAVE NO OBLIGATION TO CURE.
NOTWITHSTANDING THE
FOREGOING, SELLER SHALL BE OBLIGATED TO REMOVE, AT OR BEFORE CLOSING, ALL NEW
EXCEPTIONS CAUSED TO APPEAR OF RECORD BY SELLER.
SELLER'S FAILURE TO RECEIVE
NOTICE OF BUYER'S ELECTION WITHIN SUCH TIME PERIOD SHALL BE DEEMED AN ELECTION
BY BUYER TO CLOSE AND ACQUIRE THE PROPERTY SUBJECT TO THE NEW EXCEPTIONS (WHICH
SHALL