The subject property is real property located at 550 Jayton Drive, Colorado Springs, CO 80911, including all fixtures and appliances currently on the premises unless specifically excluded in writing by mutual agreement of the Parties.
Legal Description: LOT 170 PEAK VIEW ESTATES FILING NO. 1, BLOCK 1
Parcel Number: 64252-11-0170
In or around March 2025, the Parties entered into an original purchase arrangement under which Buyer agreed to a $40,000 down payment and undertook to refinance the Property into Buyer's name within one (1) year. It was subsequently determined that Buyer is ineligible to assume the existing VA-backed mortgage, as Buyer is not a qualifying veteran and Seller requires preservation of the associated VA loan entitlement.
Seller confirms that prior to Buyer's occupancy in March 2025, Seller resided in and used the Property as Seller's primary residence for a period of more than three (3) consecutive years, thereby satisfying the VA owner-occupancy requirements applicable to Seller's VA-backed loan during Seller's period of residency. Buyer's subsequent occupancy as a purchaser-in-possession under this Agreement does not constitute an unauthorized transfer or assumption of the VA loan; rather, the Parties are proceeding toward a full arm's-length purchase and payoff of the existing mortgage at closing.
The Parties hereby supersede all prior arrangements and representations with the terms set forth in this Agreement.
The purchase shall be financed by Buyer through an FHA-insured mortgage loan. See §7 for financing contingency terms.
The following payments made by Buyer are acknowledged by Seller and shall be applied toward Buyer's $40,000 down payment obligation:
| Description | Date | Amount |
|---|---|---|
| Initial upfront payment to Seller | March 2025 | $2,500.00 |
| Legal fees paid on Seller's behalf | 2025 | $7,500.00 |
| Cash payment to Seller | December 2025 | $15,000.00 |
| Total Applied to Date | $25,000.00 |
The remaining balance of $15,000.00 shall be considered fully satisfied and discharged upon the successful closing of the purchase of the Property. No separate cash payment of this remaining amount is required; the act of closing shall constitute full payment and settlement of the remaining down payment obligation.
Buyer has paid all mortgage payments and utility costs associated with the Property from March 2025 through the Effective Date of this Agreement, and shall continue to pay all such costs through the date of closing. Seller acknowledges and agrees that all such payments made by Buyer shall be credited toward the purchase at closing, up to the maximum amounts allowable under FHA guidelines, in addition to the applied payments set forth in §5.
This Agreement is contingent upon Buyer obtaining written FHA mortgage loan approval in an amount sufficient to consummate the purchase on or before September 10, 2026. Buyer shall diligently and in good faith pursue financing throughout the period between the Effective Date and the Closing Deadline.
If Buyer is unable to obtain financing approval by September 10, 2026 despite documented good-faith efforts, Buyer shall provide written notice to Seller, and this Agreement shall terminate pursuant to §14. Neither Party shall have further obligation to the other.
Buyer waives any right to terminate under this financing contingency if Buyer voluntarily withdraws a loan application, fails to respond to lender requests, or otherwise fails to diligently pursue approval without good cause.
Buyer has been in continuous possession and occupancy of the Property since March 2025 and has had full and ongoing opportunity to observe and evaluate the condition of the Property. Buyer hereby expressly and knowingly waives any right to an inspection contingency or formal inspection period. Buyer accepts the Property in its current as-is condition.
This waiver does not relieve Seller of the obligation to disclose all known material defects as required under Colorado law, including C.R.S. §38-35.5-101 et seq.
This purchase is subject to FHA appraisal requirements. If the Property appraises at a value less than $336,000.00, the Parties agree to negotiate in good faith to resolve the difference within ten (10) days of receiving the appraisal report. Available options include: (a) Seller reducing the purchase price to the appraised value; (b) Buyer paying the difference in cash at closing; or (c) mutual written agreement to terminate.
If the Parties cannot reach a written resolution within ten (10) days of the appraisal, either Party may terminate this Agreement in writing.
Seller agrees to contribute up to six percent (6%) of the purchase price, equal to $20,160.00, toward Buyer's closing costs, prepaid items, lender fees, FHA upfront mortgage insurance premium, and escrow reserves, as permitted under FHA guidelines at the time of closing. Any unused portion of the concession shall not be credited as cash to Buyer.
Closing shall occur on or before September 10, 2026. Seller shall provide clear, marketable title to the Property at closing, free and clear of all liens and encumbrances except those disclosed in writing prior to execution of this Agreement. Seller shall pay for an owner's title insurance policy for Buyer's benefit at closing.
Real property taxes shall be prorated to the date of closing. Buyer shall retain possession of the Property through the date of closing. Seller shall cooperate with Buyer's lender, title company, and all parties necessary to facilitate a timely closing, including providing documentation needed to resolve or satisfy the existing VA-backed mortgage at closing.
At or before closing, Buyer shall cause all utility accounts associated with the Property — including but not limited to electric, gas, water, sewer, and trash — to be transferred into Buyer's name (Joshua Haynes). Buyer shall cooperate fully with Seller to complete all required utility transfer paperwork prior to or concurrently with closing. This obligation is a material condition of this Agreement.
Buyer Default: If Buyer materially breaches this Agreement and fails to cure such breach within ten (10) days of written notice from Seller, Seller may retain the applied payments set forth in §5 as liquidated damages, which the Parties agree represent a reasonable estimate of Seller's damages, and this Agreement shall terminate.
Seller Default: If Seller materially breaches this Agreement and fails to cure such breach within ten (10) days of written notice from Buyer, Buyer shall be entitled to: (a) a full refund of all applied payments set forth in §5; (b) reimbursement of all mortgage and utility payments made by Buyer from March 2025 through the date of breach; and/or (c) specific performance compelling Seller to complete the sale. These remedies are cumulative and not exclusive of any other remedy available at law or in equity.
In the event of any dispute arising out of or relating to this Agreement, the Parties agree to first attempt resolution through good-faith negotiation. If negotiation fails within thirty (30) days, the Parties agree to submit the dispute to non-binding mediation before a mutually agreed mediator in El Paso County, Colorado, prior to initiating litigation. Mediation costs shall be shared equally. Nothing in this section prevents either Party from seeking emergency injunctive or equitable relief from a court of competent jurisdiction.
This Agreement shall be governed by and construed in accordance with the laws of the State of Colorado. Venue for any legal proceeding shall be El Paso County, Colorado. This Agreement may not be modified except by a written instrument signed by both Parties.
Any notice required or permitted under this Agreement shall be in writing and deemed delivered when: (a) personally delivered to the receiving Party; (b) sent via email with written confirmation of receipt; or (c) sent via certified U.S. mail, return receipt requested, to the Property address or such other address as the Party designates in writing.
If any provision of this Agreement is found to be invalid, illegal, or unenforceable under applicable law, such provision shall be deemed severed, and the remaining provisions shall continue in full force and effect.
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