CONTRACT TO PURCHASE PROPERTY ON TERMS

DATE:            The effective date of this Contract shall be _________________

SELLER:           Name                                                                     telephone number

                       Address                                                                  email address

                       address        

BUYER           Name                                                                      Phone number

                       Address                                                                  email address    

                       Address                                                                      

Seller agrees to sell and Buyer agrees to buy the following:

PROPERTY:     State and County of Hawaii

                         Subdivision: _____________

                         Street___________________

                         TMK 3- __________________

SELLING PRICE:     $________________ – __________ thousand and 00/dollars

DOWN PAYMENT: $________ - _______and 00/dollars.  The balance after the Down payment is ___.

PAYMENTS:             $_______ – ________________, beginning on ____ 1, 2002, and  to continue on the same day of the month thereafter, for approximately __ months, until the balance is paid in full.  Larger payments may be made at any time.  There will be no prepayment penalty.  The Amortization Schedule upon which the above payments are based is attached hereto.

INTEREST:                 9.5% - nine percent per annum on the unpaid balance.

LATE CHARGE:       $25.00 if envelope is postmarked ten days after due date.

TAXES:                      The Real Property Taxes shall be paid by Buyer by way of reimbursing Seller.  Said      Real Property Taxes are currently $_____ per year and have been paid in full through __________________.

DUES:                         All subdivision association dues and road maintenance fees shall be paid by Buyer by way of reimbursing Seller. Said subdivision dues are currently $____ dollars and have been paid in full through 2002.

WASTE DISPOSAL:   The waste disposal system in ________ is by septic/cesspool.  A septic tank/cesspool, permitted by the County of Hawaii, is required if and when Buyer builds on the Property.

DEED:                         The Seller will deliver a Warranty Deed to Buyer upon receipt of full payment hereunder.  The property is now, and shall be at the time of conveyance,  owned by Seller and free and clear of any liens or encumbrances. 

CODES:                      The Buyer shall abide by all subdivision Conditions, Codes and Restrictions, if any, and County of Hawaii Building Codes and/or Public Health regulations.  While this contract is in effect the Buyer shall not build or construct any major improvements or alterations on the Property without prior notification to the Seller.

DEFAULT                    Should Buyer fail to make the payments required hereunder, or any part thereof, when due, or fail to comply with any of the conditions, covenants and agreements set forth herein, and continue to do so for more than (30) days, Seller, by written notice or publication may declare this Contract terminated and the amounts paid hereon may be retained by Seller as the consideration for making this Contract, and thereupon the Seller shall be released from all obligation in law or in equity to convey said Property to Buyer. Any occupancy of said Property thereafter by Buyer shall be deemed to be, and be, a tenancy at the pleasure of the Seller and Buyer shall never acquire, and expressly waives any and all rights and claims of title because of possession.  This Contract shall terminate automatically if Buyer fails to make the PAYMENTS required hereunder, in full, for more than sixty (60) days.

____________________________                ________________________________

FRANK W. HAINES, SELLER                             _________________ , BUYER

NAME OF THE SUBDIVISION; TMK (3)