HUD 51971 and 5197 Offer of Sale of Real Property and Purchase Agreement

Offer of Sale of
Real Property

U.S. Department of Housing
and Urban Development
Office of Public and Indian Housing

OMB Approval No. 2577-0157 (Exp. 3/31/2020)

Public reporting burden for this collection of information is estimated to average 1.5 hours per response, including the time for reviewing instructions, searching
existing data sources, gathering and maintaining the data needed, and completing and reviewing the collection of information. HUD may not conduct or sponsor,
and an applicant is not required to respond to a collection of information unless it displays a currently valid OMB control number. We recommend that you use
one version of this sentence and be consistent throughout (including This collection of information is required for developing a public housing project pursuant to
HUD regulations 24 CFR 905. The information will be used to provide HUD with sufficient information to enable a determination that funds should or should not
be reserved or a contractual commitment made. This information collection is mandated pursuant to the U.S. Housing Act of l937. The information requested
does not lend itself to confidentiality.

1. In consideration of the sum of $
and
other valuable consideration herein called “option price,” the
receipt whereof is hereby acknowledged, the undersigned (hereinafter called the “seller”), being the owner of the property
described below, hereby offers and agrees to sell and convey the
property to the

(hereinafter called the “Public Housing Agency” (PHA) or its
assignee or nominee for the sum of $
In the event that a Purchase Agreement (form HUD-51971-II) is
executed but closing cannot be consummated for the reasons
stated in paragraph 3 or 5 of the Purchase Agreement, the seller
hereby agrees that the option price or portion thereof shall be
returned to the PHA as provided in the Purchase Agreement.
2. The property is located in (city or town and county)

in the State of
and the property is described as follows (include street address or
other specific location, attach list of any renter occupants by
name, address, and number of persons in household, and identify
any exceptions to the offer):

3. This offer shall be irrevocable for a period of
days
(insert at least 90 days) from the date hereof and shall remain
inforce thereafter until terminated by the seller by giving 30 days
prior written notice to the PHA of such termination. Until the
offer is terminated, the PHA or its designee shall have the right to
entersaid property for the purpose of appraisal, survey and inspection.
Witness

4. The PHA shall evidence acceptance of this offer by executing at
least three copies of form HUD-51971-II, Purchase Agreement, a
copy of which is attached as an exhibit, and by mailing at least two
executed copies to the seller at the address specified below so that
the seller may execute both copies and return one to the PHA.
5. Upon closing, the seller shall: (a) convey (subject to any exceptions specifically set forth in paragraph 2 hereof and liens for
current taxes and assessments) to the PHA or its designee or
nominee by general warranty deed a good and marketable feesimple title thereto, together with all improvements, hereditaments, and appurtenances thereunto belonging, free and clear of all
liens, easements, restrictions, delinquent taxes and assess-ments,
leases and encumbrances of any kind, existing or inchoate, with
proper release of dower, curtsy, and waiver of homestead rights, if
any, together with all of the seller's rights, title, and interest in and
to any streets or alleys adjoining or abutting thereon; (b) provide
documentary evidence that the zoning permits the PHA's proposed
use of the property; and (c) deliver possession to the PHA which
shall be responsible for relocation of any renter occupants in
accordance with the provisions of the Uniform Relocation
Assistance and Real Property Acquisition Policies Act of 1970, as
amended (URA).
6. Loss or damage to the property by any cause shall be at the risk of
the seller until title has been conveyed to the PHA.
7. The seller agrees, so long as this offer remains in effect, not to sell,
mortgage, encumber, or otherwise dispose of the property or any
part thereof, or interest therein, except to the PHA.
8. This offer is made voluntarily. The PHA will not use its power of
eminent domain to acquire this property if the seller and the PHA are
unable to reach an amicable agreement as to the purchase price. The
PHA will inform the seller of the amount it believes is the fair market
value of the property. If that amount is less than the proposed sale
price in paragraph 1 of this Offer of Sale,the seller may withdraw the
offer and return the option price to the PHA. The seller understands
that the seller is not and will not be eligible to receive relocation
assistance under the URA implementing regulations at 49 CFR Part
24, or HUD program regulations. This offer shall be binding upon
the seller and the seller's heirs, executors, administrators, successors,
and assignees.

Seller

Date
Witness

Supersedes HUD-51971 (1/81)

Address

Page 1 of 1

form HUD-51971-I (1/2014)

Purchase Agreement

U.S. Department of Housing
and Urban Development
Office of Public and Indian Housing

OMB Approval No. 2577-0157 (Exp. 3/31/2020)

Public reporting burden for this collection of information is estimated to average 1.5 hours per response, including the time for reviewing instructions, searching
existing data sources, gathering and maintaining the data needed, and completing and reviewing the collection of information. HUD may not conduct or sponsor,
and an applicant is not required to respond to a collection of information unless it displays a currently valid OMB control number. We recommend that you use
one version of this sentence and be consistent throughout (including This collection of information is required for developing a public housing project pursuant to
HUD regulations 24 CFR 905. The information will be used to provide HUD with sufficient information to enable a determination that funds should or should not
be reserved or a contractual commitment made. This information collection is mandated pursuant to the U.S. Housing Act of l937. The information requested
does not lend itself to confidentiality.

1. The
(hereinafter called the “Public Housing Agency” (PHA) agrees
to purchase, and
(hereinafter called the “seller”) agrees to sell, the property
described in paragraph 2 of the attached Offer of Sale of Real
Property (form HUD-51971-I, executed by the seller on
(date)(hereinafter called the “Offer of Sale”),
for the sum of $
The Department of
Housing and Urban Development (hereafter called “HUD”) has,
on the basis of its appraisal, determined the fair market
(If the
value of the property to be $
fair market value of the property is greater than the price
specified in paragraph 1 of the Offer of Sale, the seller may
withdraw its offer of sale. If the seller withdraws the offer of
sale, the option price shall be returned to the PHA). The
Purchase Agreement incorporates all conditions stated in the
Offer of Sale.
2. The PHA shall specify the place and time of closing, which
shall not be more than 90 days after the date of seller's execution
of this Purchase Agreement or such later date as may be
acceptable to seller; however, if additional time is needed for
required zoning changes, the closing date shall be extended for an
additional 90 days or such additional time as may be
acceptable to seller.
3. Upon closing, the seller shall deliver title to the property in
compliance with paragraph 5 of the Offer of Sale. If there are
defects in the title which can be remedied by legal action within
a reasonable time as agreed to by the seller and the PHA, the seller
shall take such action promptly at the seller's own expense and the
date for closing shall be extended for such
period of time. If there be defects in title which cannot be or are

not remedied within such time, this Purchase Agreement shall be
terminated, the seller shall return the option price to the PHA and
both parties shall be released from all liability for damages by
reason of any defect in title.
4. Prior to closing, the site must be determined to meet the
requirements of HUD. The seller grants permission to the PHA or
its designee to enter said property for the purpose of conducting
the following studies or tests which must be com-pleted to make
the determination, prior to closing, that the property meets HUD
requirements:

5. In the event that title is in compliance with paragraph 5 of the
Offer of Sale, but closing cannot be consummated because the
studies or tests result in a determination that the site does not meet
HUD requirements, or any required zoning changes have not been
obtained, one-half of the option price as provided in
paragraph 1 of the Offer of Sale shall be returned to the PHA.
6. All expenses of examination of title, transfer tax, and of
preparation and recording the Deed shall be paid by the PHA.
Payment of the above-stated purchase price shall be made
upon transfer of title to the PHA.
7. Current taxes shall be prorated as of the time of closing. Any
outstanding special assessments or future installments thereon,
remaining unpaid against the property shall be paid in full at time
of closing by the seller.

Certification: We hereby certify that to the best of our knowledge and belief no member, officer, or employee of the PHA, no official of the
locality (city, county, etc.) and no member of the locality's governing body has any interest, direct or indirect, in this Purchase Agreement or
in any proceeds or benefits arising therefrom.
I hereby certify that all the information stated herein, as well as any information provided in the accompaniment herewith, is true and accurate. Warning:
HUD will prosecute false claims and statements. Conviction may result in criminal and/or civil penalties. (18 U.S.C. 1001, 1010, 1012; 31 U.S.C. 3729, 3802)
PHA Execution

Signature

Date

Seller Execution
Signature

Title of PHA Official

Title

PHA Address

Address

Witness

Witness

Notary

Notary

Supersedes HUD-51971 (1/81)

Page 1 of 2

Date

form HUD-51971-II (1/2014)

Form HUD-51971-I, Offer of Sale of Real Property
Form HUD-51971-II, Purchase Agreement
1. Purpose: A Public Housing Agency (PHA) is responsible for
selecting a site or property for its proposed public housing project
under the conventional and acquisition methods. As stated in the
form HUD-51971-I, Offer of Sale of Real Prop-erty (Offer of
Sale), the offer is voluntary and the PHA will not use its power
of eminent domain to acquire the property if the seller and the
PHA are unable to reach an amicable agreement on the purchase
price. Paragraph 1 of the Purchase Agreement indicates the
amount HUD believes is the fair market value of the property. As
a consequence of these disclosures, the purchase is not subject to
any of the policies of Title III (Uniform Real Property Policy) of
the Uniform Relocation Assistance and Real Property
Acquisition Policies Act of 1970, as amended (URA) and the
seller is not eligible for relocation assistance. Renter-occupants
of the property are, however, eligible for relocation assistance
under Title II (Uniform Relocation Assistance) of the URA. All
documentation evidencing the voluntary nature of the transaction, e.g.,
invitation, newspaper and other listings, etc., must be retained by
the PHA. The form HUD-51971-II, Purchase Agreement, is to
be used by the PHA to indicate the amount which the PHA is
authorized to pay to purchase the site or property and to identify
any studies or tests required to determine if the site or property
meets HUD requirements.
2. Prepared By: The form HUD-51971-I, Offer of Sale, is
completed by a prospective seller. The form HUD-51971-II,
Purchase Agreement, is prepared by the PHA and executed by
both the PHA and the seller. Adaptations required by state or
local law may be made to forms HUD-51971-I and HUD-51971II with the approval of the HUD Office Counsel.

5. PHA Instructions Concerning Preparation:

A.

Form HUD-51971-I, Offer of Sale of Real Property

Paragraph 1. In the first space state the dollar amount of the
consideration. In the second space state the legal name of the
PHA. In the third space state the seller's asking price for the
property described in paragraph 2.
Paragraph 2. In the first space identify the city or town and
county or equivalent political subdivision in which the property is located. In the second space identify the State (or
equivalent) in which the property is located. Describe the
property in the large space, beginning with the street address
or other specific location. Also in this space identify any
exceptions to the offer and list any renter occupants by name,
address, and number of persons in the household. Use a
continuation page if required.
Paragraph 3. Insert a time period of at least 90 days taking into
consideration time necessary for any anticipated special requirements such as site studies or zoning changes.
Signature Area. The seller's signature and typed name, date and
address should be included in this area with the signatures of two
witnesses who have seen the seller sign. Space is also provided
for notarization or acknowledgement if required by local law.

B. Form HUD-51971-II, Purchase Agreement

3. Number: At least three executed copies of the form HUD51971-I, Offer of Sale, and form HUD-51971-II, Purchase
Agreement.
4. Distribution: As an attachment to its PHA proposal, a PHA
shall submit one copy of the form HUD-51971-I to the HUD
Office for each site or property comprising a public housing
project to be developed under the conventional or the acqui-sition
methods. One copy of the forms HUD-51971-I and 51971-II
shall be an attachment to the PHA's submission of the site
acquisition documents. If there are renter occupants on the site,
and if delays in closing beyond 30 days of PHA execution of the
Purchase Agreement are anticipated (due to zoning changes,
site studies, HUD Office approvals, etc.), the PHA should
submit, with its PHA Proposal, a request for HUD Office
approval of an appropriate specified extension of time for
providing the required relocation notices.

Paragraph 1. In the first space state the legal name of the PHA.
In the second space state the name of the seller. In the third space
state the date the seller signed the Offer of Sale (form HUD51971-I) and attach a copy of the Offer of Sale to the Purchase
Agreement. In the fourth space insert the amount authorized by
the HUD Office as the purchase price. In the fifth space indicate
the amount determined to be the fair market value of the
property by HUD. If the proposed sale price in paragraph 1 of
the Offer of Sale of Real Property (HUD-51971-I) is less than
the HUD determined fair market value, the seller may withdraw
the Offer of Sale and return the option price to the PHA.
Paragraph 4. In the space provided identify any studies or tests
required to be completed prior to closing to make the
determination that the property meets HUD requirements.
Paragraph 7. The second provision, that the seller pay any outstanding assessments, is based on the assumption that the value
of any improvements for which the assessment is made has
been included in the HUD-approved purchase price of the
property.
Signature Area. The first signature is that of the authorized PHA
official and signifies the PHA's acceptance of the seller's
offer,with or without changes in the price and with or without
the specified studies or tests. The second signature is that of the
seller and confirms that there is an agreement. Both signatures
attest to the certification immediately preceding the signature
area. The signatures of two witnesses are required for each party
to the agreement and spaces are provided for any locally
required notarization or acknowledgement.

Supersedes HUD-51971 (1/81)

Page 2 of 2

form HUD-51971-I (1/2014)