House Contract

Binding Contract Agreement

This Contract Agreement (the "Agreement") is made and entered into on October 29, 2024, between Mary Inthapagna ("Party A"), located at 10656 93 St., Edmonton, AB T5H1X9, The purpose of this Agreement is to outline the terms for the development, payment, and sale of the property located at 10656 93 St., Edmonton, AB T5H1X9 (the "Property").

Part A – Proposal (Non-Binding)

1. Property Details:

   • Address: 10656 93 St., Edmonton, AB T5H1X9
   • Current Mortgage Balance Including Line of Credit: $159,456.07
     • Monthly Payment: $1,600.00
     • Line of Credit tied to Mortgage: $550
     • Remaining Line of Credit Balance: $88,446.45
     • Monthly Insurance: $197
     • Monthly Power/Electric: $200
   • Maturity Date: October 30, 2024
     • Rate/Term: 6-month fixed closed term at 7.86%
     • Additional Monthly Carrying Cost Starting November 1, 2024: $400
     • NEW TERMS AND AGREEMENTS + INCREASE 
   • List Price: $250,000-270,000

2. Current Issues: The monthly payments on the line of credit do not address the principal, leading to ongoing additional expenses and interest.

Part B – In-Principal Terms (Non-Binding)

1. Investment:

   • An investment of $20,000 by Georgina Kiani (the "Investor").

2. Monthly Mortgage and Bill Payments:

   • Mary Inthapagna will continue to make monthly mortgage and associated bill payments.

3. Listing:

   • The property can be listed privately or through a realtor, with a preference for the open market.

4. Lien on Property:

   • A lien will be registered on the Property by the Investor, Georgina Kiani.

5. Direction to Pay:

   • Upon sale of the Property:
     • The Investor will be reimbursed $20,000 plus $10,000 profit.
     • Omar Kiani and Mary Inthapagna will be paid for labor and materials in cash.
     • The remaining proceeds will go to Mary Inthapagna, with any excess directed to the bank to satisfy remaining balances.

6. Registration of 2nd Mortgage:

   • A second mortgage of $30,000 will be registered to provide additional financial security for the parties.

7. Project Completion:

   • Estimated project duration is between 2 to 3 months.

8. Use of Funds:

   • Project funds will be allocated to:
     • Roof repairs
     • Floor upgrades
     • Back room and fixture enhancements
     • Kitchen and appliance upgrades

Part C – Next Steps (Non-Binding)

Both parties agree on the following next steps to facilitate this partnership and ensure a successful sale of the Property:

• Detailed property preparation, maintenance, and repairs.
• Regular updates and meetings between both parties to discuss progress.

Part D – Legally Binding Terms

1. Confidentiality:

   • This Agreement, and all related communications and documents, are confidential. Disclosure is restricted to directors, advisers, and employees on a need-to-know basis.

2. Governing Law and Jurisdiction:

   • This Agreement is governed by the laws of Edmonton, Alberta, Canada. Any disputes will be resolved under the jurisdiction of Edmonton courts.

3. Termination:

   • Either party may terminate this Agreement with no less than 30 days' notice if a formal sale agreement is not reached by November 10, 2024.

4. Acknowledgment and Execution:

   • This Agreement represents a binding commitment by both parties, effective upon execution below.

Confirmation

By signing below, each party acknowledges their agreement with the terms and conditions as outlined in this Agreement.

For Mary Inthapagna

Signature

Name

Date

For OCD Biz Solutions

Signature

Georgina Kiani
Title: Contractor Lender 

Date

This Agreement constitutes the entire understanding between the parties and supersedes all prior agreements, arrangements, or understandings.