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HomeMy WebLinkAbout(3) PO 5874: PURCHASE PRICE AND SALE OF LAND - LAKE ARTHUR DRIVEinteroffice MEMORANDUM To: Mayor, City Council, and City Manager From: Mark Sokolow, City Attorney /~ Date: May 16, 2008 Subject: P. O. No. 5874; Council Meeting May 20, 2008 Attached is P. O. No. 5874 as it pertains to the purchase price and sale of approximately 18 acres of land in the vicinity of Lake Arthur Drive. This was tak>led at the May 7, 2008 Council Meeting. There has been additional discussion as to the need of a correction deed, clarification of mitigation requirements, and the need for an access easement. Therefore, this matter needs to be tabled again. MTS:gt Attachment cc: Mr. Pete Steele MCPHERSON MONK HUGHES BRADLEY WIMBERLY, LLP Hassan Shomalzadeh z.po5874 memo2 /.9-~~ ~!J ~ -7- d2GC~~ interoffice MEMORANDUM To: Mayor, City Council, and City Manager ~" From: Mark Sokolow, City Attorney ~ c~,~~./ Date: May 2, 2008 Subject: P. O. No. 5874; Council Meeting May 7, 2008 Attached is P. O. No. 5874 as it pertains to the purchase price and sale of approximately 18 acres of land in the vicinity of Lake Arthur Drive. MTS:ts Attachment cc: Mr. Pete Steele MCPHERSON MONK HUGHES BRADLEY WIMBERLY, LLP Hassan Shomalzadeh z.po5874 memo P. O. No. 5874 05/02/08 is ORDINANCE NO. AN ORDINANCE AUTHORIZING THE PURCHASE PRICE AND SALE OF APPROXIMATELY 18 ACRES OF LAND IN THE VICINITY OF LAKE ARTHUR DRIVE WHEREAS, it is deemed in the best interests of the public to authorize the sale of approximately 18.380 acres of land off Lake Arthur Drive for the purchase pri~~e of $60,000 to Hassan Shomalzadeh, who plans to develop the approximately 18.380 acres and the adjacent 11 acres in the future as a residential area, as delineated in the request from Hassan Shomalzadeh and as forwarded by Pete Steele, his attorney, attached hereto as Exhibit "A"; and WHEREAS, the seller, Hancock, Joseph & Daniels, Inc. obtained title to the property under a DE~ed without Warranties from the PCMUD on January 12, 2000, a copy of which is attached hereto as Exhibit "B" and have executed an Unimproved Property Contract with Hassan Shomalzadeh, attached hereto as Exhibit "C"; and WHEREAS, the authorization to sell the property requires the approval of both the United States Department of Commerce, National Oceanic and Atmospheric AdministY•ation (NOAA) and the City, with the net proceeds being paid to the City; and WHEREAS, as successor in interest to the PCMUD, the City is eligible to receive the net proceeds from the sale of the property to Hassan Shomalzadeh in the amount of $54,564. NOW THEREFORE, BE IT ORDAINEI) BY THE CITY COUNCIL OF THE CITY OF PORT ARTHUR: z.po5874 Section 1. That the facts and opinions in the preamble are true and correct. Section 2. That the City Council approves the sale of the approximately 18.38 acres of :Land off Lake Arthur Drive to Hassan Shomalzadeh, so long as the=_ City received $54,564 in net proceeds. Section 3. That Hassan Shomalzadeh or his assignees shall on this property build residential neighborhoods comparable to the immediate surrounding areas and will abide by any outstanding mitigation requirements, if any. Section 4. That Hassan Schomalzadeh shall sign this Resolution agreeing to the terms ]zereof. Section 5. That the City Manager is herein authorized to sign the Authorization to Sell Property, attached hereto as Exhibit "D". Section 6. That a copy o:f the caption of this Ordinance be spread upon the Minutes of the City Council. READ, ADOPTED AND APPROVED o:n this day of A.D., 2008, at a Council Meeting of the City Council of the City of Port Arthur, Texas, by the following vote: AYES: Mayor City Council NOES: MAYOR z.po5874 ATTEST: ACTING CITY SECRETARY APPROVED AS TO FORM: CITY ATTORNEY APPROVED FOR ADMINISTRATION: CITY MANAGER AGREED TO: Hassan Shomalzadeh z.po5874 EXHIBIT "A" Bob K. Monk Lance P. Bradley z, s James E. (Jim) Wimberley Glenn H. (Pete) Steele, Jr. a Jill Swearingen Chatelain 2, ~ . ATTORNEY 3 A T L A W April 23, 2008 National Oceanic and Atmospheric Administration Office of Oceans and Coastal Resources Management Attn: Ruth Best 1305 East-West Highway N/ORM SSMC4, Room 10412 Silver Spring, MD 20910 Mark Sokolow, City Attorney City of Port Arthur P.O. Box 1089 Port Arthur, Texas 77641 RE: Permission for Hancock, Joseph & Daniels, l:nc. to sell land Gentlemen: Perry R. McPherson-Of Counsel Richard D. Hughes-Of Counsel ' Justin G. Sanderson s Brandon P. Monk s Kelly J. Stewart RECEIVED APR 2 4.2008 LEGAL DEPARTMENT I am representing the purchaser Hassan Shomalzadeh under a contract for the purchase of approximately 18.380 acres of land off Lake Arthur Drive in Port Arthur, Texas. The seller, Hancock, Joseph & Daniels, Inc., obtained title to the property under a Deed Without Warranties from the Park Central Municipal L;ftility District (PCMUD), a copy of which is attached hereto as Exhibit 1. As I understand it:, the PCMUD was dissolved several years ago, and the City of Port Arthur, Texas is the successor in interest to PCMUD. The deed requires that any contract of sale must be approved in writing by the United States Department of Commerce National Oceanic and Atmospheric Administration and PCMUD, with the net sale proceeds being paid to PCMUD (actually to the City of Port Arthur as successor to PCMUD). The contract bears a grosssale price of $60,000. The value of the property is listed at $32,170 on the tax rolls. I attach to this letter as Exhibit 2 a true copy of the contract of sale, which is contingent upon the approval of NOAA and the City of Port Arthur. Attached as Exhibit 3 is a proposed consent instrument with signature spaces for NOAA and the City of Port Arthur. We are requesting that you approve the contract of sale so that the transaction may proceed to closing at Port Arthur Abstract and Title Company. Please return the signed instrument back to me as soon as possible. If you should have any questions or comments please do not hesitate to call me at 409-724-6644 or email me at psteelenmc-law.net. Please send. me your contact info upon receipt of this letter so I will know how to contact you. Thank you in advance for your cooperation in this matter. 3120 Central Mall Drive Port Arthur, Tx 77642 website: ww~w.mc-law.net 409-724-6644 1-800-8:~0-6785 409-724-7585 Fax ~~~ 1 Board Certified: Family Law Texas Board of Legal Specialization 2 Board Certified: Personal Injury Trial Law Texas Board of Legal Specialization 3 Admitted to Practice in TX & MS 4 Board Certified: Residential Real Estate and Commercial Real Estate Texas Board of Legal Specialization 5 Admitted to Practice in TX, MS and LA G Admitted to Practice in TX & LA ATTORNEYS AT LAW Apri123, 2008 National Oceanic and Atmospheric Administration Mark Sokolow, City Attorney Page 2 Sincerely yours, ~'~~ Pete Steele mkh Enclosures Hassan Shomalzadeh 4506 Kandywood Lane Port Arthur, Texas 77642 Hancock, 7oseph & Daniels, Inc. Tim McKenzie, President 127 Noyant Drive Little Rock, Arkansas 72223 EXHIBIT "B" -~- STA'I`E t~F TEXAS ~ nEE~ v~THro~T w ~ courl~'x a~ .rl l~,soly ~ 'l'tie ParlG Geotral hfunccFpral iJnlrry Dis~ErlCt, a lmdy p~oirttc and poliric~ stibdivistott a€ the ri ~ State of Texas, organrzed and existing under ~Mh,apters ~9 and 5~# of the Texas mater Code the ~ "Grantor") for and in consideration of the scum of ten dollars ($10 fl0) and other good a~ C3 ~ valuable consideration, .l~aclud~,g those agreetneztts set forth ~ that c:eztaizt Real Estate Option d ~ Agreetztettt dated April 9, 1997 (th,e "Agreement°?~ itz hand paid by Hancock, Jtraeptt 8~ Daniels, Inc.. a Texas Corpozation (the "Grantee"} the receFpt of which i5 hereby acknowledged, has ~ ~ -~,r- granted, sold and conveyed and by these presents does grant, seR and convey unto Grantee all of that cattalo real property situated m lcffersart County, Texas, more fully described in Exhibit "A~" attached hereto and made a part hereof for all purposes This Conveyance is triode subject to the :Following requiremezits; 1) All restrictions, easerrtcnts, covenants, condttaons and prior conveyances and reservations of >;r~u~eral and royalties of record in the off ce of the Coun~€y Clerk cif 7effersan County, Texas, to the extent that the same are still in effect and relate to the Property; 2) All zoning laws, regulattans atacl. ordizrances of ;:nunictpal aril other goverrunexital atrthortties, ~f any, but only to the ex€ent that they are in effect aad relate the above clescnbad property; 3) Property taxes on t1Ze above described property for the curre~ tax and any subsequent tax years, which arc loot yet dui and payable;. _ .. _.._.._.... ~) Reservation of a right-of-way a~~d access easement in favor of the adjacent real property owned by the Grantor constituting agproxttnately twenty-two acres of land utsl~zed by the Crrantor as an equivalent pondiitg site pursuam to certain obligations and agree€nents made by the Grantor with the United States Degartn~nt of Commerce and ~e National Gcean>,c Atmospheric Assaciatiort, and ~) Grantee may not contract fvr the sale of any real property interest in, on or out of the Property without the prior written approval of both the United States Department ref Commerce National Ocea~uc and Atmospheric Aclrninistratson and Exhibit "1" ~~ €he Grantor, and should such approval tae.~rarited, then Grantee covonauts that any net proceeds a#ter payrnenr of (i) site develflprnent cflsts incurred by Grantee only upon the Property and (iii ~~lflsixtg costs for the sale of the Property sbaZl be gaud by Grantee to the Grantor. An access easement: in and acrflss the Property is reserved €v the Grantor and w the Grantor's successors and assigns 3txi shall remain aright-of--way br easement in and across the. Property, but may be along such roadways as are used ley Grantee ou the Property. Grantor excludes ancf excepts any w.~ranties, expressed br implied, regarding the Property, tncludittg, without limitations, any warranties arising by common [aw ar Section 5 U23 of the Texas Property Coda br its successors, and Grantee accepts the Property "AS ZS ANI3 WITH ALL FAULTS, TF ANY, AN13 WI'1'I~OLJT ANY t~ARRANTY, EXPRESSED QR IMPLED AND WITI~QLtT WAR.R.ANTY AS TQ ACG`F..SS TQ THE PRC7PERTY. Grantee also accepts an}~ and alt material removed fr¢ztx the property pursuant €o tl~ Agreemcr~t in an "AS IS AND WYTH ALL 1~AULTS, IF AN'Y, AND WTTHO~TT ANY WARRANTY, EXPRESSED OR IMPLIED" Sper,sficslly, ~r;thoat limiting the generality bf the fbregfling, Grantee accepts tare txtatexia[ wrthout any wara-anties as tb envirotunental cotiditior€s existing within the materials yr ttte suitability of the rrtatet'tals for any partictitlar purpose br development use or potential Ta have and tv .._ hold the Property, t+~gether with ai] anct singular the rights artd appurtenances belunglag m -any way to the P3-flperty, subject to ~th~ lunitatioris, waivers of warranty, access and other provisions stated at}ove, to Grantee its sttuessors and its assigns forever without warranty of any kind. Upon possession of the Property, Grantee acknowledges ~t has examtrted the Property as well as any imprc~~fetnents located tberean and accepts Ilse Property "AS IS ANF3 WITH Ai,L FAULTS. IF~ ANY, AND WITHQUT ANY WARRANTY, Gagfla4nGi t 24147 ~~ G I i I~ F' Ci F- '~a'G..`ii~.'ta_+ h aa. L z~i i i ---•---T )---- 1 EXPRESSER GR 11~~~,;IED "Grantee has further,~rtd grevi©uslp acfcuowleciged to G[~an[or that Grantee accepts tine Property in t[s present akndition and agr~ that the Praperry is fit fvr GFantee's inte>:tde~i use, CrRA.ATTOR: 1"ark Central 11'#unlcipal L'ti~ty r Morris CaE['ter, Fresident, 13valyd ~ ~ tCo ACCEP`T'ED AN`D A.pP.R4V1~U dais ~e~~ ~y of C~RA~TEE: Hancock, Joseph & AewieIs, It[c, STATE ~F T£XAS ~ coup of .l~~l~sox ~ ~:y. ancock, President This instrument was acknowledged before me on the /~ft" day of ~~- ~.....~.., -, ~y MOii.RIS CAI~TE~t, Pre&iclent t'or the Park Central nicipsi i`T y District. ~~o n~[~~l~~~a~s =~ ~uisrrs.r~US~ -~~~* IttY CQ11~t5.410N E%PfRE3 ~-14-2002 IIM111~II1~B~111 ' {.a rotary Publ rate of Texas t30QD50NE311291 a9 Pave 3 .«ni ~"1"A'FF ~~' TEXAS ~ C4U1~i'TY OF ,~FFE~iSOt~ ~ `This instrurneut was acluotivledged befi~re me on the ,--~.~ day of ~c u..a-~ z 999, ~y J{}E HA1Y£flCK, Fresid~~t Yor liax~coc~, J~s+epl~ ~ Daniels c. s$'~ "~r Ck~iUI.Y@~ L. LII~'li _.~~_ HOtzry Fut{:e, State of Tt:~s ~Ey Comm~sseoa Expitss ~y~~„"`P~, tit ±x R ~ f-t ~~3 , 2lJfl2 ri? y ~e..~... •,•~e: 1~Fotary Publ ,State of 'Texas AFTER RECC3RDl~G, RE'1`I.;RN 'Tf~: Mr Joe Hancock `The ~t+'il2ows Apartments 7924 Willowvcx3 L~.e Fort A€€l~u3r, Texas 77642 ~bASONG~3:4149 p~ ~ ~~ BJ'F "A" A tract or parcel of land containing 1& 38 acres of land, mare ar less, out a€ and a part. of s 45 205 acres, ~t of artd a~ part of Lets Numbcrcd Seven atttt Pight (pt. of ? & 8) in Block Number Teti (Ifl}, Range "Ji" and Mart of Lot Num€~r Five (pt. of 5} in Block ~'wttaiaer Teat (10), Range "G" of the lands of the Part Arthur land Carxipany, in Jefferson Cciunry, Texas, as the setae apps upon the map or plat there+3f, of file and of recoFd lu V41. 1, Page 22, I~ap Records of Jefferson Coixtaty, Texas, sand tract being further depicted tan a prel~aiinary drawing prepazed by !alai R. Hodges, Registered Public: band Surveyor No. 4583, dates ]une 26, 198_ ~~~~~ •~M ~~~f t~~~ 7~1n~j- wry- fi /,~wt'LYW ~Oql AIIE; A2'~ ~1. ~ 3'fi1 2~~10~s5i SGY ~iCEi~ JE~~i"RSQt~ ~~Ol ~TY~KTEXf~ GdQI]SO!sGt3 Z914A p~ 5 EXHIBIT "C" aw~iausc RROMUI_GATEO BY THE 7E~AS REAL EStATE COMMISSION {TREC) o2-f3-o6 ~r UNIMPROVED PROPERTY CONTRACT RioTICE: Not For Use For Condominium Transactions 1. PA#~'tE~: FIaac©ck , Jose~sh & Daniels .Inc . i (Setter) I, agrees tc sell and convey to xassazz Shoattalzadeh (Buyer) an'd Buyer agrees', to buy from Seiler the Property described below. 2, PRtgPERT`t': Lot ,Block _ ,See. Special Provisions ~~ Addition, City of Port Prrthur ,County of J'ef€ersoa ,Texas, known as, ~9 38E1 Acres (?f~ Lake Art=hur Dr 77642 (addressCzip code}, dr cis described on attached exhibit together with ail rights, pnvileges and appurtenances pertainrng fhereto, including but not limited to: wafer rights, claims, permits, strips and gores, easements, and' eaaperatlve.or assvctatiori memberships (the Property), 3. SALES PRICE: A Cash portion of Sales Price payable by buyer at closing .................................................... $_ 6O, OOO. t20 B. Sum of air financing described below (excluding any loan funding 'fee or, mcutgaga insurance premium) ............................................................................. $ ...... C. Sales Price (Sum Q# A and B} .............................................................................................. $ 60 . pot? 00 4. t=tNAIVCING: The portion of Sales Price not payable in cash will be paid as follows: (Check applicable boxes below) ^ A. T'NIR~ PARi°Y FINANCING: One ar more third .party mortgage loans in the total amount of $ (excluding any loan funding fee or mortgage insurance premium). (1) Property Apptflval:.lf the Property does not satisfy the lenders' underwriting requirements for the loan(s), this contract will terminate and the lamest money will be refunded to Buyer, (~} 1=inartcing Approval: (Check one box only) ^ (a) Tf7s contract is subject to Buyer being approved for the financing described in the attached Third Party Financing Condition Addendum. (lJ) This contract is not subject to Buyer being approved for financing and does not involve FkiA or tIA' financing: ^ B. ASSUMPTION: The assumptioh of the unpaid principal balance of one or more promissory notes described fn the attached TREC Loan Assumption Addendum. ^ C. SELLER FINANCING: A promissory note from Buyer to 5elier of $ ,secured 6y vendor's and deed of trust liens, and containing the terms and conditions described in the attached TREC Seller Financing Addendum. If an owner policy of title insurance is famished, Buyer shall furnish Seller with a mortgagee policy of title insurance. 3. EARNEST MONEY: Upon execution of this contract by both parties, Buyer shall deposit $1. Q00.00 as eamest;maney with Port Arthur Abs.traet & Ti,trle Co. , as escrow ager-t, a# .295f} Turtle Creek Drives. Port Arth~r_ Tx 77f,42 (address). Buyer sh~il deposit additional earnest money of'$ with escrow agent within days after the effecti~re :date of this contract. If Buyer fail:~ to deposit the earnest money as required by this contract, Buyer will be in default. 6. TITTLE ~Qt.lCY ANU St1R1lEY; A. TITLE PQLICY: Seller shall furnish to Buyer at Q Seller's ^ Buyer's expense an owner pol'ICy of title insurance (Titre Paitcy} issued by Port Aicthur. Abstract & '~i.tle Co .. (Title Corripany) in the amount of the Sales Price, dat{zd at or after closing, insuring Buyer against loss under the provisions of the Titre Policy, subject to the promulgated exclusions (including existing bu'riding and coning arciiaance~) and the following exceptions: (1 j Resfrjctive atsvenants common to the platted subdivision in which the Property is located. (~ The stagdarit punted exception for standby fees, tai:es and assessments. (3~ Liensycaated es part bf the financing described In Paragraph 4. ~- (4}:Utility basements created by the dedication deed or plat of the subdivision in which the Property is located. (5) Reservations ar exceptions otherwise permitted by t=his contract or as may be approved by Buyer in writing. (ti) The standard printed exception as to marital rights. (7 The standard printed exception as to waters, tidelands, beaches, streams, and rel2fed matters. (t3~ The standard printed exception as to discrep.<~ncies, conflicts, shortages in ;area or boundary lines, encroachments or protrusions, or overlapping improvements. Buyer, at Buyer's expense, may have the exception amended t© read, "shortages in area". B. GE]MM17MI=NT; Vlrthin 2Q days after the Tile Company receives a copy of this contract, Seller shall famish to t3l~yer a commitment for title insurance (Commitment) and, at Buyer's Expense, legible copies of restrictive Initialed for identification by Buyer '!) and Seiler ~~ TREC Nt7.9-8 °('i"AR-'f6QF) 2-1a-06 Rage 7 of 8 Btourlt Properties 3826 Tall, Port Neches TX 77651 Pitone:40~7215533 Fax. (409} 731-9560 Ronald J. Blount Hassan 1$38 A Rroduced Nilat Z1pForm"' DY RE FormsNet, LLC 19025 F'dteen Nile Road, Clinton Township, NifcJtlgan 48035 www.ziofarm.com Ezhibit " 2" 18.380 Acres off i~ake Arthur Dr. Contract Canceming Port Arthur , 77642 Page 2 of 8 Q2-13.06 (Address of Property) covenants and documents evidencing exceptions in the Commitment (Exception Documents) other than fhe standard printed exceptions. Better authorizes the ~Titte Company to deliver the Commitment and Exception pocuments to Buyer at Buyer's address shown in Paragraph 21. If the Comrnifinent and Excep#ion Documents are not delivered to Buyer within the specified time, titre time for delivery will be autamatioally extended up to 15 days or the Closing Date, whichever is earlier, C SURWEY: The survey must be made by a registered professional land surveyor acceptablie to the Title Gonpan~r and any lender. {Check one box only) {1) Within _~, ~ days..after the effective date of this contract, Seller shall furnish to Buyer and Ttle Corhpariy Seller s existing survey of the Property and a Residential Heal Property Affidavit promulgated by tiie Texas department of Insurance (Affidavit). If khe existing survey or Affidavit is riot acceptable to Title Company or Buyer's lender, Buyer shall obtain a new survey at ^ Seller's ^ Buyer's expense no later than 3 days prior to Closing Date. tf Seller fails to #umish the existing survey or Affidavit within the time prescribed, Buyer shall obtain a new survey at Seller's expense no later than 3 days prior to Closing Date. {2) Within 45 days after the effective date of this contract, Buyer shall obtain a new survey at Buyer's expense. Buyer is deemed to receive the survey on the date of actual receipt or fhe date specified in this paragraph, whichever is earlier. {3} Within days after the effective dai:e of this contract, Seller, at Seller's expense shall furnish a new survey to Buyer. D: OBJECTIONS: Buyer may object in writing to (i) defiscts, exceptions, or encumbrances to fine: disclosed on tha survey other than items tiA{1) through (7) above; or disclosed in the Commitment other than items tiA{1) through {8) above; {ii} any portion of the Property lying in a special flood hazard area {Zone V or A) as shown on' the current Federal Emergency Management Agency map; or {iii) any exceptions which prohibit the fallowing use or ac#ivity: Buyer must object not Inter than (i) the crosing ante or tri) days after tsuyer recerves me ~omrnrrmeni, Exception Documents, and the survey, whichever is earlier. Buyer's failure to object within the time allowed ur-11 constitute a waiver of Buyer's right to object; except that the requirements in Schedule C of the Commitment are clot waived. Provided Seiler is not abligated to incur any expense, S.elter shalt cure the timely objections of Buyer or any third party lender within 15 days after Seller recerves the objections and the Closing Date Wi11 be extended as necessary. if objections are not cured within such 15 day period, this contract will terminate and the earnest money will be refunded to Buyer unless Buy~ar waives the objections. E. TITLE NOTICES: (1} ABSTRACT OR TITLE POLICY: Broker advises Buyer to have an abstract of title covering the Property examined by an attorney of Buyer's selection, or Buyer should be famished with or obtain a Title Policy. 1f a Title Pvl'tcy is furnished, the Commitment shouldl be promptly reviewed by an attomey of Buyers choice due iri the time limitations pn Buyer's right to object. (2) MAND,4TORY OWNERS' ASSOCIATION MEMI3ERSHIP: The Property^ is l] is not subject to mandatory membership in an owners' association. If the Property is subject to mandatory membership in an owners' association, Setter notifies Buyer under §5.012, 'Texas Property Code, that, as a purchaser of property in the resider'rtial community In which the Property is located, you are obligated #o be a member of the owners' association. Restrictive covenants governing the use and occupancy of the Property and a dedicatory instrument governing the establishment, maintenance, and operation of this residential community have - been or wi1C be recorded in the Real Property Records of the county in which the Property is located. Copies of the restrictive covenants and dedicatory instrument may be obtained from the county clerk. You are obligated to pay assessments to the owners' .association. The amount of the assessments is subject to change. Your failure to pay the assessments could result in a lien on and the fareetosure of the Property. If r is concerned about these matters, the TREC promulgated Addendum ft7s Property Subject to Mandatory Membership in an Owner's Association should be used. (3} ST~tTUTORY TAX QISTRICTS: If the Property is situated in a utility or other statutorily created district ptovid'ing water; sevver; drainage, or flood coni;rol facilities and services, Chapter 49, 7-eras Water Cade, requires Seller to deliver and Buyer to sign the statutory notice relating to the tax rate, bonded indebtedness, or standby fee of the district prior to Tinal execution of this contract. {4) TIDE WATERS: If the Property abuts the tidally influenced waters of the state, §33.135, Tetras Natt,tTat Resources Code, requires a notice regarding coastal area property to be included in the contract. An addendum containing the notice promulgated by TREC ar requrred by the parties must be used. (5) ANNEXATION: If the Property is located outside the limits of a municipality, Seller notifes Buyer under §5.011, Texas Property Code, tfiat the Property may now or later be included in the extraterritorial jurisdiction of a municipality and may now or later be subject to annexation by the municipality. Each municipality maintains a map that depicts its boundaries and extraterritorial jurisdiction. To determine if the Initialed for identification by Buyer ~~ and Seller ~v TREC N0.9-6 (fAR-160 213-08 ~/ Page 2 flt' 8 Pr9dueed with ZlpFormTM by RE FormsNai. LLC 18025 Fifteen Mle Road. Clinton Township. Miehiyan 48035 www:zinrorm.com Hassan 1838 A 1$.38o Acres 4EE bake Arthux Dr. Contract Ccnceming Port Arthur , _ 77692 Page 3 of 8 0~-13-d6 (Address of (Property) Property is located wi#hin a municipality's ex#rfterritorial jurisdiction or is likely to be located within a munrcrpalrty's extratarrltoria! jurisdiction, contact ail municipalities located in the general proximity iif the Property for further Inforrnatron. ~8) PFtaPERTY LOCATED liV A CERTIFICATED SEIRViCE AR€A OF A UTILITY Sf=RV1CE PROVIDER: Notice required by §13.257, Water Cade: The real property, described in Paragraph 2; that you are about to purchase may be located In a certificated water or sewer service area, which is authorized by law to provide wak~r or sewer serutce to the properties in the certificated area. If your property is located in a certificated area there. may be special costs or charges that you will be required to pay before you can receive wafer or sewer service. There may be a period required to construct lines or other facilities necessary to provide water or sewer sefvtee t0 yOWf property. You are advised to determine if the property is in a certificated area and contact it-e utility service provider to determine the cost that you will be required to pay and the period, if any, that is required #o provide water or sewer service #o your property. 'fhe undersigned Buyer hereby acknowledges receipt of the' foregoing notice at or before fhe execution of a binding contract for the purchase of the real property described' in Paragraph 2 or at closing of purchase of the real property. (7) PUBLIC IMPROWEMENT DISTRICTS: If the Property rs In a public .improvement district, §5.014, Property Code, requires Seller to notify Buyer as follows: As a purchaser of this parcel of real property you are obligated to pay an assessment to a municipality or county for an improvement project undertaken by a public Improvement district under Chapter 372, Local Government Code. The assessment may be due annually or in periodic instatlmen#s. More information concerning the amount of the assessment and the due dates of that assessment may be obtained from the municipality or county levying the assessment. The arrtount of the assessments is subject to change. Your failure to pay the assessments could result in a lien on and the foreElosure of your properly: (8) TEXAS AGRICUI.TU:RAL DEVELOPMENT DISTRICT: The Property Q is ®Is not located in a Texas Agricultural Development District. For additional information, contact fhe Texas Department of Agriculture. 7: F~R{~P'ERTY CdNDlTlbM1il: A. ACCESS,INSPECTIC~NS AND UTILITIES; Seller shall permit Buyer and Buyer's agents access to the P%party at reasonable limes. Buyer may have the Property inspected by inspectors selected by Buyer and licensed by TREC or otherwise permitted by law to make inspections. Seller at Seller's expense shall tum on axis#ing utilities for inspections. Nt`1TICE; Buyer should determine the availability of utilities to the Property suitable to satisfy Buyer's needs. B. ACCEPTANCE OF PROPERTY CONDITION: Buyer accepts the Property in its present condition; provided Seiler, at Seller's expense, shat! complete the following: C: CQMPLI~TiON OF REPAIRS: Unless otherwise agreed in writing, Seiler shall comp etc a agree repairs prior . the Ciosing Date. Ail required permits must be obtained, and repairs must be performed liy persons who are licensed or otherwise permitted by law to provide such repairs. At Buyer's election, any transferable warranties received by Setter with respect #o the repairs will be transferred to Buyer at Buyer's expense. if Seiler fails to complete tiny agreed repairs pfior to the Closing Data, Buyer may do so and receive reimbursement from Seller at ctosn~ g,The ~ipsing Date will be extended up to 15 days, if necessary, to complete repairs. l3. EN1/IRON3VEENTAL MATTERS; Buyer is advised that the presence 4f wetlands, toxic substances, including astiestas and was#es or other environmental hazards, or the presence of a threatened or endangered species or Ifs tte-bitat may affect Buyer's Intended use of the Property. If Buyer is concerned about these matters, an addendum omulgated by Tf~i=C et required by the parties should be used. E. IrLLER'$ D18CLOSURES: Except as otherwise disclosed in this corrtract, Seller has no knowledge Q# the following: ' (1 any flooding of the Property: . (2~ an riding or threatened Irtlgation, condemnatioin, or special assessment affecting the Property; (3} an~vironmental hazards or conditions affec#ing the Property; ~- 4) iany dumpsite, landfill, or underground tanks or containers now or previously located on t11e Property; ~~ any wetlands, as defined by federal or state law or regulation, affecting the Property; or (~). any threatened or endangered species or their habitat affecting the Property. 8; BRt~KERS' FEES: Ail obllgativns of the parties for payment of brokers' fees are contained in separate written aggreements. 9. ClQStt!~1G: A. The Closing of the sale wr~l bean or before April it , 20Q~ , ar within 7 days after ab}actions made under taragraph 6D have bean cured or waived, wtichever date is later (Closing t]ate~ If ettTier party fails to close the sate by the Closing Date, the non-defaulting party may exercise the remedies contained in Paragraph 15. Initialed for identification by Buyer ; ~~1t and Seller (~ TREE ND. 9-8 (TAR--1607) 2-13-06 Page 3 of 8 Produced! N!%i1 ZrpFOtln"" bj~ RE FormsNst; LtC 18025 Fifteen Mlle Road, etinton Towrrslttp, MlcMpan 48033 vuuuw.ziofonncorn Hassan f8.38 A 18.3$0 Acres Off E,ake Arthur Dr. Contrast Concerning Fort Arthur, 77 642 Page .4 of 8 02-13.06 (Address of Property) B. At dosing: (1j Seller ~haii execute and deriver a general warrarrty deed conveying title to the Property to Buyer and shoaling no additional exceptions to those permitted i~t Paragraph ri and furnish tax statements or cer~ficates showing no delinquent taxes on the Property. (2) Buyer shall pay the Sales Price in good funds acceptable to the escrow agent. (3} Seiler and Buyer shall execute and deliver any notices, statements, certifica#es, affidavits, releases, loan documents and other documents required of them by this contract, the Commitment or law necessary for the rriosirtg of the sale and the issuance of the Title Policy. ~. Unless expressly prohibited by written agreement, Seiler may continue to show the Propergr and receive, rtegotista and accept back up offers. d; All °eauenants, representations and warranties in this contract survive closing. 4t). Pa$5,~$SION: Salter shalt deliver to Buyer possession of the Property in its present or required condition upon closing and funding. 9'i. 5PBCIAI. PROVISIONS: (Insert only factual statements and business details applicable to this sale. TREC rules prohibit licensees from adding factual statements or business details for which a contract addendum or other form has been promulgated by TREC for mandatory use.) Buyer is aware, N>OAA and the City of Port Arthur Will have to approve this sale if accepted by Seller. The legal. description as defined by Chid Jefferson County Appraisal District ~.s ~,olloroos : LT 5 TIt 3 BLIP 10 RG G LT '7 TR a LT 8 TR 1 BLK 10 Rf H FALGt? 1$.3130 AC. Its reference to Paragraph 23. Huyar m,aives the Termination Option Period.. 1n reference i~o Paragraph 8., Broker's Fee, Broker still receive 6~ of sales Brice far commi.ssors, to be held from the proceeds of this sale . 12. SETTLEMENT Ai9D Q`fHER EXPENSES: A. ~`he following expenses must be paid at or prior to closing: (1.) Expenses payable by Seiler (Seller's Expenses): (a) Releases of existing liens, including prepayment penalties and recording fees; release ofi Seller's loch lialaility; fax statements or certificates; prepairatian of deed; one~haif of escrow fee; and other expenses. payable by Seiler under this contract. (b) Seller shall also pay an amount not to exceed $ N/A. to be applied; in the fiol#owing order. Buyer's Fxpenses which Buyer is prohibited from paying by FMA, VA, Texas Veterans Housing Assistance Program or oi;her govemmental loan programs, and then to other buyer's Expenses as allowed by the lender. (2) Expenses payable by Buyer (Buyer's Expenses): (a} loan origination; discount, buy-down, and commitment fees (Loan Fees). (F;) Apprai~a! fees; loan application fees; credit reports; preparation of loan documents; interest on the notes from date of disbursement to one man#h prior to datt:s of first monthly payments; r~cording fees; eoptes of easements and restrictions; mortgagee title policy with endorsements required by lender loan-related inspection fees photos; amortization schedules; one-half of escrow fee; ail prepaid items, including required premiurrrs far flood and hazard insurance, reserve deposits for insurance, ad valorem taxes and special governmental assessments; final compliance inspection; courier fee; repair inspection; underwriting fee; wire transfer fee; expenses incident to any loan; and other' expenses payable by Buyer under this contrac€. B. Buyer shalt pay Private Mortgage Insurance PremiulTr (PMI), VA Loan Funding l=ee, or FHA Mortgage insurance Premium (MlP) as required by the lender. C, If any expense exceeds an amount expressly stated in this contract for such expense to be paid by a party, kh2t party nay terminate this contract unless the other party agrees to pay such excess. Buyer may not pay charges and Bees eMprt~ssiy prohibited by FHA, VA, Texas Veterans Housing Assistance Program or other governmental loan program regulations. Initialed for icientitlcation by Buyer and Seller ~~ TREC NO.9-6 (TAR-16Q7} 2-13.1)6 Page 4 of S P~oduceil with ZipForm"' 6y RE FortnsNel, tLC 18025 Fifteen Mile Road, Clinton TownshiQ, Michigan 48x35 ~ F18s9a111$.3$ A 18.3$0 Acres O€f I~ake Arthur Dr. Contract Concerning Port Arthur , 77642 Page 5 of 8 02-13-06 (Address of t~roperty) 13. PRORATI4?NS AND ROLLBACi{ TAXES: A. PROBATIONS: Taxes for the current year, interest, maintenance fees, assessments, dues and rents will be prorated through the Closing Date. The tax proration may be calculated taking into consideration any change in exemptions that will affect the current year's taxes. if taxes for the current year vary from the amount prorated at closing, the parties shall adjust the prorations when tax s#atements for the current year are available. tf taxes are not paid at or prior to closing, Buyer shall pay taxes fo:r the current year. t3. RE3LLBACK TAXES: tf this sate or Buyer's use oi' the Property after dosing results in the assessment of additional taxes, penalties or interest (Assessments) for periods prior to closing, the Assessments will be the obligation of Buyer. if Seller's change in use of the Pn~perty prior to closing or denial of a special use valuation on the Property claimed by Seiler results in Assessments for periods prior to closing, the Assessments will lie the obligation of Seller. Obligations imposed by this paragraph will survive closing. 14. CASUALTY LOSS; If any part of the Property is damaged or destroyed by fire or other casualty after the effective date of this contract, Seller shall restore the Property to its previous condition as soon as reasonably possible; but in any event by the Closing Date. if Seller fails to do so duE: to factors beycanct Seller's control; Buyer niay (a} terminate this contract and the eamest money will be refunded to Eiwyer (b) extend the time fpr performance up to i5 days and the Closing Date will be extended as necessary or (c) accept the Property in its damaged condition with an assignment of insurance proceeds and receive credit from Seiler at closing in the amount of the deductible under the insurance policy. Seller's obligations under this paragralh are Independent of any other obligations of Seiler under this contract. 15'. C#EFAULTt If Buyer fails to comply with this contract, Eluyer wilt be in default, and Seller may (a) enforce specific performance, seek such other relief as may be provided 'by law, or both, or (b) terminate this contract and receive the eamest money as liquidated damages, thereby releasing both parties from this contract. If, due b factors beyond Setter's control, Setter fails within the time allowed to make any non-casualty repairs or deliver the Commitment, or survey, if required of Seller, Buyer may (a} extend the films for performance up tv 15 days and the Closing Date will be extended as necessary or (b) terminate this contract as the sole remedy and receive titre earnest money. If Seller fails to comply with this contract for any other reason, Seller will be in default and Buyer may (a} enforce specific performance, seek such other relief as may be provided by law, yr both, or (b) terminate this eon#ract and receive fhe earnest money, thereby releasing both parties from this contract. 1`6. MEDiAT10N: It is the policy of the State of Texas to encourage resolution of disputes through alternative dispute resolution procedures such as mediation. Any dispute between Seller and Buyer related ko this contract which is not resolved through informal discussion x[] will ^ will not be submitted to a mutually acceptable mediation service or provider. The parties to the mediation shall bear the mediation costs equally. This paragraph does not preclude a party from seeking equitable relief #rom a court of competent Jurisdiction. ' '#7: 4TTORNEY'S SEES: The prevailing party in any legal proceeding related to this contract is erititied to recover reasonable attorney's fees and all costs of such proceeding incurred by the prevailing party. 18. ESCR©W: A, ESCR©W: The escrow agent is not (i} a party to this contract and does not have liability #or the performance or nonperformance of any party to this contract, (ii) liable for interest on the earnest money and (Ai) liable for fhe loss of any earnest money caused by the failure of any financial institution in which the eamest money has been deposited unless the financial institution is acting as escrow agent. B: EXPEF~ES: At closing, the earnest money must bye applied first to any cash down pa+/ment, then to Buyer's Expenses and any excess refunded to Buyer. If no c:tosing occurs, escrow agent may require payment of unpaid expenses incurred on behalf of the parfies and a written release of liability of escrow agent from all parties. C. DEMAND: Upon termination of this contract, either party or the escrow agent may send a release of earnest money to each party and the parties shalt execute counterparts of the release and deliver same to the escrow agent. If either party fails to execute the release, either party may make a written demand to the escrow agent for the earnest money. If only one party makes written demand for the earnest money, escrow agent shall promptly provide a copy of the demand to the other party. If escrow agent does not receive written objection to the demand from the .other party within 15 days, escrow agent may disburse the earnest money to the party making demand reduced by the amount of unpaid expenses incurred on behalf of the party receiving the earnest money and escrow agent may pay the carne to the creditors. If escrow agent complies with the provisions of this paragraph, each party hereby releases escrow ag+Wnt from all adverse claims rely#ed to the disbursal of the eamest money. Initialed for identification by Suyer and Seller~~ 'FR.EG NO. 9-6 (TAR-1607) 7 43-06 Page 5 of 8 Ptcdtnced wR#i ZtpFOrtN'"' by Rt FotmsNet LLC i 8025 Fifteen Mite Road, Clinton Tovmship, Michigan 48035 ww~n.zioform.com Hassan 1$.38 A 18.38Q Acres Off bake Arthur Dr. Contract Concerning Port Arthur ` 77 642 Page 6 of 8 02-13-0F (Address of Property) D. DAMAGES: Any party who wrongfully fails or refuses to sign a release acceptable td the escrow agent wi#hih 7 days of receipt of the request will. be fiabte to the other party for liquidated damages of three times the amount of the earnest money. E. NQl'lCES: Escrow agent`s notices will be effective; when sent in compliance with Paragraph 21. Notice of objection to the demand will be deemed effective upon receipt by escrow agent. 19: REPRESENTATIONS: Seiler represents that as of the: Closing Date (a} there will be no liens, assessments, or' security interests against the Property which wiB not be satisfied out of the sales proceeds unless securing payrhent of any loans assumed by 13uy'er and (b} assumed loans will not be in default. If any representation of Seller in this contract is untrue on the Closing Date, Seller will be in default. 20. FEDERAt_ TAX R°EQl11REMENTS: If Seller is a "foreign pen;on," as defined by applicable law, or if Seller faits to deliver axe affidavi# r4 Buyer that Seiler is not a "foreigh person," then Buyer shall withhold from the sales proceeds an amount suffcient to comply with applicable tax law andl deliver the same to the Internal Revenue Service together with appropriate tax forms, Internal Revenue Service regulations require filing written reports if currency in excess of specified amounts is received In the transaction. 21. NOTtCE$: All notices from one party t4 the ocher must be in writing and are effective when mailed to, hand-delivered a#, or transmitted by facsimile or electronic transmission as follows: Tc1 Buyer at: To Seller at: Hassan Shomalzadeh Tim McKenzie. President 4506 Ka;ndvwood Lane 12.7 NoSrant Drive Port Arthr Tex 77642 Telephone: (~09j` ,466-63tY4 Facsimile: E-rrtail: Little Rock ~ Ar]cansas X2223. Telephone: (501) 663-2451 Facsimile: E-mail; Z~. AGI~)EMENT OF PARTIES: This contract contains the entire agreement of the parties and cannot be changed except by their written agreement. Addenda which are a part of this contract are (check all applicable boxes): ^ Third Party Financing Condition Addendum ^ $elter~ancing Addendum ^ Loan Assumption Addendum ^ Addendum for Property Subject to hAandatory ikllembership in an Owners' Association Addendum for Sale of Other Propefij by Buyer Other (list}: Initialed for identification by Buyer ~~ and Seiler ~~+~~~`,'./ (TAR-16t)7) 2-13-06 t7taduced wigs ~pForm"' by RE FormsAlet, LLC 18025 F'rfteen Mite Raad, Clinton Township. Michigan 48035 www_zlprarmccm ^ Environmental Assessment, Threatened or Endangered Species and Wetlands Addendum ^ Addendum for Coastal Area-Property Addendum for Property Located Seaward of the Gulf lntrasoastal Waterway ^ Addendum for Release of Liability on Assumption of FHA, VA, or Conventional Loan Restoration of Seller's Entitlement for VA Guaranteed Loan ^ Addendum far "Bank-Up" Contract TREC Nfl. 9-6 Page ~ of 8 Has';aiit 18.38 A 18.380 Acres ©ff bake Arthur Dr, Contract Concerning Part Arthur . 7 7 6.42 Page 7 of 8 02-13-t76 (Address of Property) Z3. TERMINATIQN OPTIt3Nc Fcr nominal consideration, the receipt of which is hereby acknowledged by Seller, artd Buyer`s agreement to pay Seller $ NfA - (Option Fee) within 2 days after the effective date of this contract, Seller grants Buyer the unrestricted right to terminate this contract by giving notice of termination t0 Seller within N : A days after the effective date of this contrait. If no dollar amount is stated as the Option Fee or i# Buyer fails to pay the Option Fee within the fiime prescribed, this) paragraph will not be a part of this sontraet and Buyer shall not have the unrestricted right to terminate this contract. !f Buyer gives notice of termini#ion within the time prescribed, the Qption Fee will nat.be refunded; however, any earnest money will be refunded to Buyer. The Option Fee ^ will ~] will ndt be credited tv the Sales Price at closing. Tithe is of the ess$nce for this paragraph and strlcE carrtptiance with the time far performance is required. 24. GfINSUL7 AN ATTdRNFf; Heal estate licensees canntst give legal advice. READ T111S CONTRACT CAREFULLY. If you:do not understand the effect of #liis contract, consult an attorney BE~'OI~E signing. Buyer's Seller's Attorney is: Pete Steele Attorney is: 3120 Central Mall Dr. Part Arthur.. T.+ex., 77642 Telephone: t.409} 72.9-6644 __ Telephone: Facsimile: Facsimile: E-mail: ____ _- _ E-main .EXECUTED the ~D~f1 day of '7')')C,r~1i Z o0 8 (EFFECTIVE DacTE). (BROKER: F#LL IN THE DATE t3F FINAL ACCEPTANCE.II .~ ~ ~, ~~ ', Buyer Hassan Shomalzadeh Buyer Seller Hancock, ~Foseph & niels,Tnc. Seller The farm of this contract has been approved by the Texas Real Estate Commission. TREC forms are intended for use only by trained teat estate Ilcensees. No representation is made as to the legal validity or adequacy of any provision in any specific transactions. It Is not Intended for complex transactions. Texas Real Estate G~srrimisslon, P.O. Box 12185, Austin, ZX 787i1-2188, i'-800-250.8732 or (512} ,i59.65Mi (h#tp;/fwww.trec.state.bt.us} TREC NO.9.6. This #Orm replaces TREC NIO.9-5. (TAR-160 2-13-018 Produced wnh YlpFonnTM by RE FornssNiet. LLC 78025 Fltteen Mile Raad, ClinOon Township, Michiyart 481»5 www. otortncom TREC N0.9-6 Page 7 of 8 Na3~u-1838 A 18.380 Aeres Off ;Lake Arthur Dr. Contract Canceming Port Arthur . 77642 Page 8 of 8 02-i3-06 {Address of Property) BROKER INFORMATION APED RATIFICATION OF FEE Listing Broker has agreed to pay Other Broker N/A of the total sales price when Listing Broker's fee is received. Escrow Agent is authorized and directed to pay Other Broker from Listing Broker's fee at closing. N/A Blount Properties 0234628 0#her Broker ~ L'icense No, Listing Broker license No. represents ^ Buyer only as Buyer's agent ^ Seller as Listing Broker's subagent Associate Telephone represents x^ Seller and Buyer as an intermediary ^ "Sheller anty~as~rSeller's agent - - ~ ~/~T~,~„~- (909) 721-5533 Listing Associa#e ~ ~ Telephone Ronald J, Blount 2826 Nall (909)721-9560 Broker's Address Listing Associate's Office Address Facsimile Port Neches Tx 77651 City State Zip City State Zip ronnie@blountpro~erties.com Facsimile Email Address (409)721-5533 Email Address Selling Associat Telephone Ronald J. B1 unt Same Selling Associate's Office Address Facsimile City State Zip Email Address OPT10N FE.E RECEIPT Receipt of $ -o- (Option Fee} in the form of is acknowledged. Seller or Listing Broker Date ~C/ONTRACT AND EARIVEST MONEY RECEIPT ]~ Receipt of Contract and f~ $ _,_ Earnest Money in the form of ~ ~ ~ ~v is acknowledged. ~ ~~ ~ ~~~ ESCrOW Agent: Port Arthur Abstract & Title Co. Date: ( .. By: Molly Email Address 2954 Turtle Cr~k Drives Telephone: {'149) 960-300Q Address Port Arthur Tx _ 77642 Facsimile: Cfty State Zip TREC NO, 9-6 (TAR-9607) 2-13-46 Page 8 of 8 Produced with ZlpForm TM by RE FormsNel, LLC X8025 Rtteen Mile Road, Clinton Township, Michigan 48035 www.ziaform.com Hassan 18.38 A Approved by the Texas Real Estate Commission for Voluntary Use Texas Jaw requires alt real estate licensees to give the following information about brokerage services fo prospective buyers, tenants, sellers and landlords. information About E3rokerage Services efore working with a real estate broker, you should know that the duties of a broker depend on whom the broker represents. If you are a prospective seller or landlord (owner) or a prospective buyer ar tenant (buyer), you should know that the broker who lists the property for sale or lease is the owner's agent. A broker who acts as a subagent represents the owner in cooperation with the listing broker. A broker who acts as a buyer's agent represents the buyer. A broker may act as an intermediary between the parties if the parties consent in writing. A broker can assist you in locating a property, preparing a contract or lease, or obtaining financing without representing you. A broker is obligated by law to treat you honestly. IF THE BROKER REPRESENTS THE OWNER: The broker becomes the owner's agent by entering into an agreement with the owner, usually through awritten - listing agreement, or by agreeing to act as a subagent by accepting an offer of subagency from the listing broker. A subagent may work in a different reaE estate office. A tisttng broker or subagent can assist the buyer but does not represent the buyer and must place the interests of the owner first. The buyer should not tell the owner's agent anything the buyer would not want the owner to know because an owner's agent must disclose to the owner any material information known to the agent. IF THE BROKER REPRESENTS THE BUYER: The broker becomes the buyer`s agent by entering into an agreement to represent the buyer, usually through a written buyer representation agreement. A buyer's agent can assist the owner but does not represent the owner and must place the interes#s of the buyer first. The owner should not tell a buyer's agent anything the owner would not want the buyer to know because a buyer's agent must disclose to the buyer any material information known to the agent. IF THE t3ROKER ACTS AS AN INTERMEDIARY: A broker may act as an intermediary between the parties if the broker coIDplles with The Texas Real Estate License Act. The broker must obtain the written consent of each party to the transaction to act as an intermediary. The written consent must state who wilt pay the broker and, in conspicuous bold or underlined print, set forth the broker's obligations as an intermediary, The broker is required to treat each party honestly and fairly and to comply with The Texas Real Estate License Acl. A broker who acts as an intermediary in a transaction: {1) shall treat all parties honestly; {2) may not disclose that the owner will accept a price less than the asking price unless authorized in writing #o do so by the owner; {3) may not disclose fhat the buyer will pay a price greater than the price submitted to a written offer unless authorized in writing to do so by iha buyer; and (4) may not disclose any confidential information or any information that a party specifically instructs the broker in writing not to disclose unless authorized in writing to disclose the information or required to do so by The Texas Real Estate License Act or a court order or if the information materially relates to the condition of the property. With the parties' consent, a broker acting as an intermediary between the parties may appoint a person who is licensed under The Texas Real Estate License Act and associated with the broker to communicate with and carry out instructions of one party and another person who is licensed under that Act and associated with the broker to communicate with and carry out instructions of the other party. If you choose to have a broker represent you, you should enter into a written agreement with the broker that clearly establishes the broker's obligations and your obligations. The agreement should state haw and by whom the broker will be paid. You have the right to choose the type of representation, Nany, you wish to receive. Your payment of a fee to a broker does not necessarily establish that the broker represents you. If you have any questions regarding the duties and responsibilities of the broker, you should resolve those questions before proceeding. Real estate licensee asks that you~cknowledge receipt of this innformation about brokerage services for the Ilcensee's records. Tenant Texas Real Estate Brokers and Salespersons are Ycensed and regulatedf by the Texas Real Estate Commission (TRQC). If you have a question or complaint regarding a real estate Ilcense8, you should Contact TREC art P.O. Box 12188, Avstin, Texas 78711-2188 or 512.48&9980. 01A (TAR-2501)1/1!96 Blount Properties 282G Nall, Port Neches TX 77G51 Plrone:40972t5533 Fax: (409) 721-9560 Ronald J. Blount Produced with ZipForM^" by RE FormsNe4 LLC 18025 Fifteen Ntile Road, Clinton Township, Mlchlgan 48035 www.zipiorrn.com iti; rwauxarnxo orparraxnr TREC No. 4P-K Page 1 of 1 (.zfx ,~EF~`ERSO~1 COUNTY DRAINA~G~ DI~TRiCT .#? NOTICE TO P~JRC~ASERS The real property, described below, which you are about to purchase, is located in the 3efferson County I~i~anage District No. 7. The Disn•ict has taxing authority separate fi•om any other taxing authority, and may, subject to voter approvals issue an unlimited amount of bonds and levy an unlimited rate of tax in payment of such bonds. As of this date, the rate of taxers levied by the District on real property located in the district is 0..172102 on each 100.00 of assessed evahiation. If the District has not yet levied taxes, the most recent projected rate of debt service tax, as ofthis data, is 0.00 on each 100.00 of assessed valuation, The total amount of bonds which has been approved b}i the voters and which have been or may, at this:date, be issued is .00, and the aggregate initial principal amounts of all bonds issued for Otte or more of the specified facilities of the District and payable in whole or in part from property taxes which Have bean previously issued was $28,845.000.00. T€te District has the authority to adopt and impose a standby fee on property in the district that has district- finaneed water or sewer facilities and services availablle but not connected. The district may exercise the authority without holding an election on the matter. A:s ofthis date, the most recent amount of the standby fee is 0:00. An unpaid standby fee is a personal obligation of the person that owned the property at the time of unposition and is secured by alien on the property. Any person may request a certificate from the district staring the amount, if any, of unpaid standby fees an a tract of property in the district. The purpose ofthis Aistrict is to provide drainage and flood control facilities and services within the district through the issuance of bonds payable in whole or in part from property taxes. The cost of these utility facilities is not i.nchtded in the purchase price o~Fyour property, and these utility facilities ate owned or to lie:owned by the District. The: legal description of the property, which you are acquiring, is as follows: LT 5 TR 3 $LK 10 RG GLT7TR4LT8TR1 BLKIORGHPA-~O. ~~ '~ -1 ~} • 2,ar~~ Date 5ignatu~re of Seller pate Signatrre of` Seller The undersigned Purchaser hereby acknowledges race;ipt of the foregoing notice at or prior to execution of a binding cdritr~aet for the purchase of the real property described in such notice or at closing of purchase of the real property /' ~l%~~~ ~,,~! ~y~~ . ~~ Signature of Purchaser 'Date Signature of Purchaser >sIJR~HASER IS ADVISED TI•lAT THE INFORMATION Sh10WN ON THIS FORM IS SUBIECT TD GHAN~E BY THE DISTRICT AT ANY TIME. TIRE DISTRICT ROUTINELY ESTABLISHES TA3{ RATES DURING THE MONTHS OF SEPTEMBER THROUGH DECEMBER OF EACH YEAR, EFFECTIVE FOR THE YEAR IN WHICH THE TAX RATES ARE APPROVED BY THE DISTRICT. PUIiC~HASER IS ADVISED TO CONTACT THE 1:-iS'['RIC'I' TO DETERMINE THE STATUS OF ANY Cl1RREN'I` OR PROPOSED CHANGES Td THE t1VFORMATIOIV SHOWN ON THIS FORM. ~~ TEXAS ASSOCIAT;lON OR REALTORS® 1NTERilIIEDIARY i~Et_ATt'Q'NSHIF NOTICE USE OF TNIS FORM by PERSONS NMO ARE NOT fitEMBfiRS OF THE TE7fAS ASSOGATION OF REALTORSQ9IS NbT AUTFtORIZEO. a11'sxai A9soelatlan W! REALTr}RS6, Inc. 2tl64 Ta: ___ .HancoE~,, Joseph & •baniel.s ~ Inc. t'Pim 1~fcltenz.ie„ P'resid~ht) (Seller or Landlord) and Hassan Sl~>.omalzadeh (PrC~SptfCt) ~t'am: Blaurit. Prop.eri~i~s, tRc~nald ~'. Blount) (Brcaker'sFirmj 16.38t) Acres Qf€ Lake Arthur Re: Pori: Arthur, Tx 7764 Property) Date: A. Under this notice, "owner" means the seller or landlord of the Property and "prospect" means the above-named prospective buyer or tenant for the Property. i3. Brdketrs arm repFesen#s the owner under a listing agreement and also represents the prospect unifier a buyerJtenant representation agreement. C. Irf the written listing agreement and the written buyer/tenant representation agreement, both the owner and the prospeot'previousiy authorized- Broker to act as an intentlediary if a prospect who Broker represents desires to buy or [ease a property that is listed by the Broker. When the prospect makes an offer to purchase or lease the Rraperhr, Broker will act in accordance with the authorizations granted in the listing agreement and in the buyer/tenanE representation agreement. b, Broker ~ will ~ wiH not appoint licensed associates to communicate with, carry out instructions of, and provide opinions and advice during negotiations to each party. tf Broker makes such appointments, Broker appoints: to°the owner, and to the prospect. E. 13y acknowledging receipt of this notice, the undersigned parties reaffirm their consent for broker to act as an intermediary. F: Adtlitiortal iilforrrlaClon; .(Discllase rrraferial information related b Broker's relafionshi~ to tf~e partiea, such as Rersonal r~latiai:iships or prior ar conteniPtated busi>tiess Felations~iti~s.) 1'lie under.igtletl aGknowleci a receipt of this notice ^t~-~~ Selisr:or Laridiord Date R'°iin t~I~Efe>:ixe Prospect C7ate Hassan Sho'inalxadeh Seiler or Landlord Date Prospect fJate (TAEt 14i19~ 7-y-0~ Page 1' of 9 Bl'ounE PrtipeiEie~ 282b NaiFF, Pon F3sches'17F ?7G51 PFione:4Q472F55~3 fiat: '(40'4) 72f-9S60 Ronald 1.81ourd [.zGt Produced iM9i zipFormTM by RE FormsNat. LLC 18025 Fiteen AAile Road, Clinton Township, Michigan 48x35 www•zbracm.cam EXHIBIT "D" AUTHORIZATION TiD SELL PROPERTY Whereas, by Deed Without Warranty recorded August 23, 2001 under County Clerk's file number 2001030451 Official Public Records of Real Property, Jefferson County, Texas, Park Central Municipal Utility District conveyed approximately 18.380 acres of land to Hancock, Joseph & Daniels, Inc.; and Whereas, the Deed provides that any future contract of sale must be approved in writing by United States Department of Commerce National Oceanic and Atmospheric Administration and the Park Central Municipal Utility District; and Whereas, Park Central Municipal Utiliity District was dissolved and the City of Port Arthur, Texas is its successor in interest; and Whereas, Hancock, Joseph & Daniels, Inc. wishes to sell the property to Hassan Shomalzadeh for $60,000 pursuant to a contract furnished to NOAA and the City, with the net sale proceeds being paid to the City. Accordingly, the undersigned hereby approves the sale of the property pursuant to the contract with Hassan Shomalzadeh and pursuant to the terms of Resolution No. United States Department of Commerce National Oceanic and Atmospheric Administration By (printed name and title) City of Port Arthur, Texas (Successor to Park Central Municipal Utility District ) By (printed name and title) z.po5874 exhibit d