The undersigned(collectively, “Prospective Buyer”) and Garrison Landing LLC, a Minnesota limited liability company (“Developer”) agree as follows regarding Unit No.(the “Unit”) to be constructed in a common interest community to be commonly known as Garrison Landing (the “Project”), the location of which Unit is set forth in the preliminary plans of Developer, the receipt of which Prospective Buyer acknowledges.
Prospective Buyer shall pay to Developer the sum of $25,000 (the “Reservation and Design Fee”) in consideration of Prospective Buyer’s opportunity to participate in the design of the Unit and to enter into a “Contract” (defined below) to buy the Unit, all as described below. The Reservation and Design Fee shall be paid on the execution of this Reservation Agreement by check payable to Developer and is not refundable to Prospective Buyer. The Reservation and Design Fee shall be held initially by Developer and subsequently by Developer’s title company, Burnet Title, if and when Prospective Buyer and Developer mutually execute and deliver to each other a Contract for the Unit. No interest shall accrue, or be paid, to Prospective Buyer on the Reservation and Design Fee
Prospective Buyer acknowledges receipt from Developer of (a) Developer’s standard form of purchase agreement containing the Base Price and other terms and conditions for a sale of the Unit improved according to the “Base Plans” (as defined below) (the “Standard Contract”); and
(b) the statutory condominium Disclosure Statement for the Garrison Landing condominium project.
Prospective Buyer acknowledges that, in part, the Standard Contract (and the Custom Contract described below) contemplates the following provisions: An initial earnest money deposit (in amount equal to 50% of the purchase price) to be paid at the execution of the Contract. The Reservation and Design Fee shall be credited toward that initial earnest money payment when a Contract is executed by Prospective Buyer and Developer. Any increases in the purchase price resulting from a change order shall be paid as additional earnest money at the time of the change order. All earnest money to be paid under the Contract may be comingled with the earnest money of other prospective buyers of units at the Project and used by Developer to pay for costs of constructing the Project, but shall be credited against the purchase price at closing of the purchase and sale of the Unit under a Contract.
Upon the counter-execution of this Reservation Agreement by Developer (that date of counter-execution being the “Effective Date”), Prospective Buyer may schedule up to three (3), one and a half hour (1 ½) design meetings with Developer’s builder, John Kraemer & Sons, Inc. (the “Builder”) during the thirty (30) day period commencing on the day after the Effective Date (said 30-day period being the “Reservation and Design Period”) in order: (a) to discuss, develop and evaluate design customization to the interior of the Unit; it being acknowledged that the
location and orientation of exterior and demising walls, windows and doors as well as other features affecting the remainder of the Building and/or Building systems or operation cannot be modified and further, that customization of the interior of the Unit may be subject to limitations concerning the structural and operating integrity of the Building, as well as applicable codes and ordinances; and (b) to review customized plans and corresponding pricing. Developer shall have no obligation to accept any specific customizations of the Unit and shall establish all pricing for any customizations of the Unit which are acceptable to Developer.
The Base Price for the Unit as described above corresponds to the Unit improved in accord with the plans, specifications and allowances set forth in Exhibit C-1 of the Standard Contract delivered to Prospective Buyer (collectively, the “Base Plans”). All costs of customizing the Unit (i.e., making any and all changes to the Base Plans) shall be determined by Developer and added to said Base Price. Prior to the end of the Reservation and Design Period, Developer will deliver to Buyer a final form of purchase contract incorporating into the Standard Contract all custom design modifications to the Base Plans as may have been agreed upon by Prospective Buyer and Developer (the “Custom Design Modifications”) and providing for a purchase price equal to the Base Price plus the cost of the Custom Design Modifications as determined by Developer (such contract delivered by Developer being the “Custom Contract”). The Custom Contract and the Standard Contract are each referred to in this Reservation Agreement as a” Contract”.
If Prospective Buyer wishes to proceed with a purchase of the Unit, Prospective Buyer shall, prior to the end of the Reservation and Design Period, execute and deliver to Developer either the Standard Contract or the Custom Contract, together with the balance of the initial earnest money required to be paid under the applicable Contract (i.e., the initial earnest money less the amount of the Reservation and Design Fee). If, prior to the end of the Reservation and Design Period, Prospective Buyer has not executed and delivered to Developer one of said Contracts and said earnest money payment, Developer may terminate Prospective Buyer’s rights under this Reservation Agreement immediately upon delivery of a written termination notice to Prospective Buyer, in which case neither party shall have further rights, or obligations to the other, hereunder or otherwise in connection with the Unit or the Project, and the Reservation and DesignFee shall be retained by Developer; it being acknowledged and agreed by Prospective Buyer that Prospective Buyer’s opportunity to participate in the design of the Unit and to enter into a Contract for the Unit is full consideration for its payment of the Reservation and Design Fee, the adequacy and receipt of which consideration is hereby acnowledged, and that the amount of the Reservation and Design Fee is a reasonable estimate of the total costs and expenses which are expected to be incurred by Developer in connection with this Reservation Agreement, including, but not limited to, those pertaining to planning, designing and pricing the Unit, as well as administrative, legal and other costs and further corresponds to potential loss of another sale of the Unit during the pendency of this Reservation Agreement if Prospective Buyer elects not to purchase the Unit.
This Reservation Agreement does not constitute an agreement to buy or sell the Unit, and is not assignable or otherwise transferrable by Prospective Buyer to any other person or entity.