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HomeMy WebLinkAboutPR 15246: PURCHASE OF SABINE PASS PROPERTY - COMMUNITY CENTER & RECREATIONAL FACILITIES/DIANNE JACKSONP. R. No. 15246 05/01/09 is RESOLIITION N0. A RESOLIITION AS IT PERTAINS TO A PIIRCHASE AGREEMENT FOR PROPERTY IN SABINE PASS FOR A COMMIINITY CENTER AND ADJACENT RECREATIONAL FACILITIES WHEREAS, it is deemed in the best interests of the citizens to authorize the City Manager to enter into a Purchase Agreement with Dianne Jackson, individually and as the Executor of the Estate of George Welch, for the purchase of Tract 128 and any other property owned by the Estate of George welch and inherited by Diane Jackson, in Block 8, Range 5, in Sabine Pass as to build a community center and adjacent recreational facilities for the citizens of Sabine Pass, in substantially the same form as attached hereto as Exhibit "A", with a purchase price of $ NOW THEREFORE, BE IT RESOLVED BY THE CITY COIINCIL OF THE CITY OF PORT ARTHIIR: Section 1. That the facts and opinions in the preamble are true and correct. Section 2. That the City Manager is herein authorized to enter into a Purchase Agreement for Tract 128 and any other property owned by the Estate of George Welch and inherited by Diane Jackson, in Block 8, Range 5, in Sabine Pass as to build a community center and adjacent recreational facilities for the citizens of Sabine Pass, in substantially the same form as attached z.pr15246 hereto as Exhibit "A", with the City Attorney taking such action to obtain or purchase said tract. Section 3. That a copy of the caption of this Resolution be spread upon the Minutes of the City Council. READ, ADOPTED AND APPROVED on this day of A.D., 2009, at a Meeting of the City Council of the City of Port Arthur, by the following vote: AYES: Mayor Councilmembers NOES: ATTEST: MAYOR CITY SECRETARY APPROVED AS TO FORM: ~~ ~''~ CITY ATTORNEY APPROVED FOR ADMINISTRATION: CITY MANAGER z.pr15246 APPROVED AS TO THE AVAILABILITY OF FIINDS: ASSISTANT CITY MANAGER/FINANCE DIRECTOR z.pr15246 EXHIBIT "A" ~~ TEXAS ASSOCIATION OF REALTORS® COMMERCIAL CONTRACT -IMPROVED PROPERTY USE OF THIS FG0.M aY PERSONS VMO ARE NOT MEM9ER5 Of THE TEWS ASSOGn i ION OF REALTDRSA IS NO i AUTHORIZED. OTexas ASmiiation of REALTORSiD. Inc. N05 1. PARTIES: Seller agrees to sell and convey to Buyer the Property described in Paragraph 2. Buyer agrees to buy the Property from Seller for the sales price stated in Paragraph 3. The parties to this contract are'. Seller: Diane Jackson, Individually and as Executor of Estate of eorge We c Address: Phone: Fes' E-mail: Buyer: City of Port Arthur Address: Phone: Fax: E-mail: 2. PROPERTY: Jefferson County, Texas at A. "Property" means that real property situated in or as follows: (address) and that is legally described on the attached Exhibit Tract 128 and any other property owned by Estate of George Welch in Block 8, Range 5 of the Town of Sabine Pass, as well as any property inherited by-Diane Jackson therein B. Seller will sell and convey the Property together with: (1) all buildings, improvements, and fixtures; (2) all rights, privileges, and appurtenances pertaining to the Property, including Seller's right, title, and interest in any minerals, utilities, adjacent streets, alleys, strips, gores, and rights-of-way; (3) Sellers interest in all leases, rents, and security deposits for all or part of the Property; (4) Seller's interest in all licenses and permits related to the Property; (5) Sellers interest in all third party warranties or guaranties, if transferable, relating to the Property or any fixtures; (6) Seller's interest in any trade names, if transferable, used in connection with the Property; and (7) all Seller's tangible personal property located on the Property that is used in connection with the Property's operations except: (Describe any exceptions, reservations, or restrictions in Paragraph l2 or an addendum.) (If the Property is a condominium, attach condominium addendum.) 3. SALES PRICE: At or before closing, Buyer will pay the following sales price for the Property: P P Y Y Y g ................... A. Cash ortion a able b Bu er at closin ~ B. Sum of all financing described in Paragraph 4 ........................... $ C. Sales price (sum of 3A and 38). $ and Seller _, - Page 1 of 13 (TAR-1801) 10-18-OS Initialed for Identification by Buyer _. LOU RICHARD'S REALT'f 440 53RD ST., PORT ARTHUR TX 77640 ---------.zfz Phone: 609-982-1101 Fan: Lou Richard Commercial Contract -Improved Property concerning 4. FINANCING: Buyer will fnance the portion of the sales price under Paragraph 3B as follows: This ~ A. Third Partv Financing: One or more third party loans in the total amount of ~ contract: ^ (1) is not contingent upon Buyer obtaining third party financing. ~ (2) is contingent upon Buyer obtaining third party financing in accordance with the attached Commercial Contract Financing Addendum. The City is requesting monies from the Port Arthur for Positive Action. ^ B assumetl he lex st ngdpromi oryttnote secured bynthe I Property,cwhichnbalancedat dclosinguwell bel ^ C. Seller Financing: The delivery of a promissory note and deed of trust from Buyer to Seller under the terms of the attached Commercial Contract Financing Addendum in the amount of $ 5. EARNEST MONEY: 400 as earnest A. Not later than 3tfdays after the effective date, Buyer must deposit $ money with American Title (escrow agent) at (address). If Buyer fails to timely deposit the earnes money, Seller may terminate this contract by providing written notice to Buyer before Buyer deposits the earnest money and may exercise Sellers remedies under Paragraph 15. with the escrow agent to be made B. Buyer will deposit an additional amount of $ part of the earnest money on or before: ^ (i) days after Buyer's right to terminate under Paragraph 7B expires; or ^ (ii) Buyer will be in default if Buyer fails to deposit the additional amount required by this Paragraph 56 within 3 days after Seller notifies Buyer that Buyer has not timely deposited the additional amount. C. Buyer may instruct the escrow agent to deposit the eamest money in an interest-bearing account at < federally insured financial institution and to credit any interest to Buyer. 6, 71TLE POLICY, SURVEY, AND UCC SEARCH: A. Title Policy: Buyer's (1) Seller, at 5t8tt~& expense, will furnish Buyer an Qwner's Policy of Title Insurance (title clompany) issued by in the amount of the sales price, dated at or after closing, insuring Buyer against loss under the tit e policy, subject only to: roved b Bu er in writing; and (a) those title exceptions permitted by this contract or as may be app Y Y (b) the standard printed exceptions contained in the promulgated form of title policy unless this contract provides otherwise. (2) The standard printed exception as to discrepancies, conflicts, or shortages in area and boundary lines, or any encroachments or protrusions, or any overlapping improvements' L~ (a) will not be amended or deleted from the title policy. ^ (b) will be amended to read "shortages in areas" at the expense of ^ Buyer ^ Seller. (3) Buyer may object to any restrictive covenants on the Property within the time required under Paragraph 6D. (4) Within days after the effective date, Seller will furnish Buyer a commitment for title insurance (the commitment) including legible copies of recorded documents evidencing title exceptions. Seller authorizes the title company to deliver the commitment and related documents to Buyer at Buyer's address. The City will pay for the costs of obtaining Title Reports from American Title. page2of13 (TAR-1801) 10-18-05 Initialed for Identification by Buyer _, _ and Seller _, Produced v+ith ZloForm® by zioLoaix 18070 Flfleen Mile Road. Frier. Michioan 49026 wv,wzioloan mm Commercial Contract -Improved Property concerning B. Survey'. Within days after the effective date: ^ (1) Buyer will obtain a survey of the Property at Buyer's expense and deliver a copy of the survey to Seller. The survey must be made in accordance with the Texas Society of Professional Surveyors' standards for a Category 1A survey under the appropriate condition. O (2) Seller, at Seller's expense, will furnish Buyer a survey of the Property dated after the effective date. The survey must be made in accordance with the Texas Society of Professional Surveyors' standards for a Category 1A survey under the appropriate condition. ^ (3) Seller will deliver to Buyer and the title company a Vue and correct copy of Seller's existing survey of the Property dated along with an affidavit required by the title company for approval of the survey. If the survey is not acceptable to the title company, Seller, at Seller's expense, will obtain a survey acceptable to the title company and deliver the acceptable survey to the buyer and the title company within 15 days after Seller receives notice that the existing survey is not acceptable to the title company. The closing date will be extended daily up to 15 days if necessary for Seller to deliver an acceptable survey within the time required. C. UCC Search: ^ (1) Within days after the effective date, Seller, at Seller's expense, will furnish Buyer a Uniform Commercial Code (UCC) search prepared by a reporting service and dated after the effective date. The search must identify documents that are on file with the Texas Secretary of State and the county where the Property is located that relate to all personal property on the Property and show, as debtor, Seller and all other owners of the personal property in the last 5 years. ^ (2) Buyer does not require Seller to furnish a UCC search. D. Buyer's Objections to the Commitment Survev and UCC Search: (1) Within 60 days after Buyer receives the commitment, copies of the documents evidencing title exceptions, any required survey, and any required UCC search, Buyer may object to matters disclosed in the items if: (a) the matters disclosed constitute a defect or encumbrance to title to the real or personal property described in Paragraph 2 other than those permitted by this contract or liens that Seller will satisfy at closing or Buyer will assume at closing; or (b) the items show that any part of the Property lies in a special flood hazard area (an "A" or "V" zone as defined by FEMA). If Paragraph 6B(1) applies, Buyer is deemed to receive the survey on the earlier of: (i) the date Buyer actually receives the survey, or (ii) the deadline specified in Paragraph 6B. (2) Seller may, but is not obligated to, cure Buyer's timely objections within 15 days after Seller receives the objections. The closing date will be extended as necessary to provide such time to cure the objections. If Seller fails to cure the objections by the time required, Buyer may terminate this contract by providing written notice to Seller within 5 days after the time by which Seller must cure the objections. If Buyer terminates, the earnest money, less any independent consideration under Paragraph 7B(1), will be refunded to Buyer. (3) Buyer's failure to timely object or terminate under this Paragraph 6D is a waiver of Buyer's right to object except that Buyer will not waive the requirements in Schedule C of the commitment. 7. PROPERTY CONDITION: A. Present Condition: Buyer accepts the Property in its present condition except that Seller, at Sellers expense, will complete the following before closing: (TAR-1801) 10-18-05 InRialed for Identifcation by Buyer ,, _ and Seller _, Produced with ZipFomd try zipLogix 18070 FiReen Mile Road, Freser, Mkhigan E802fi www i oLo4 corn Page 3 of 13 --__'_-..zfx Ccmmercial Contract -Improved Property concerning - B. Feasibility Period: Buyer may terminate this contract for any reason within 60 days after the effective date (feasibility period) by providing Seller written notice of termination. (Check only one box.) ~ (1) If Buyer terminates under this Paragraph 7B, the earnest money will be refunded to Buyer less $ 100 that Seller will retain as independent consideration for Buyers ment oIf the right to terminate. Buyer has tendered the independent consideration to Seller upon pay amount specified in Paragraph SA to the escrow agent. The independent consideration is to be credited to the sales price only upon closing of the sale. If no dgllarQaWOlnotrhavetheriohttlo _ _.-.,.. _ _ .x r,. _._. a..a~ ~., 1{moly ricnnsit the eame5t mG -- _ -- as ^ (2) Not later than 3 days after the effective date, Buyer must pay Seller $ independent consideration for Buyers fight to terminate by tendering such amount to Seller or Seller's agent. If Buyer terminates under this Paragraph 7B, the earnest money will be refunded to Buyer and Seller will retain the independent consideration. The independent consideration will be credited to the sales price only upon closing of the sale If {no dol~ f a ~ouBuverswillenot hauls C. Inspections Studies or Assessments: (1) During the feasibility period, Buyer, at Buyer's expense, may complete or cause to be completed any and all inspections, studies, or assessments of the Property (including all improvements and fixtures) desired by Buyer. (3) studies, or (4) Except for those matters that arise from the negligence of Seller or Seller's agents, Buyer is responsible for any claim, liability, encumbrance, cause of action, and expense resulting from Buyer's inspections, studies, or assessments, including any property damage or personal injury. Buyer will indemnify, hold harmless, and defend Seller and Seller's agents against any claim involving smatter for which Buyer is responsible under this paragraph. This paragraph survives termination of this contract. D. Property Information: (1) DeliveN of Property Information: Within 30 days after the effective date, Seller will deliver to Buyer: ^ (a) a current rent roll of all leases affecting the Property certifed by Seller as true and correc ; O (b) copies of all curent leases pertaining to the Property, including any modifications, supplements, or amendments to the leases; ^ (c) a current inventory of all personal property to be conveyed under this contract and copies of any leases for such personal property; (TAR-1801) 10-18-05 Initialed for Identification by Buyer _, _ and Seller-..- Produced with ZipFOmrD oy zTLoglz 18010 FAleen Mile Road, Frazer, Mkhigan 48026 w.w+z'pLO91x mm (2) Seller, at Sellers expense, will turn on all utilities necessary for Buyer to make inspections, studies, or assessments. Buyer must: (a) employ only trained and qualified inspectors and assessors; (b) notify Seller, in advance, of when the inspectors or assessors will be on the Property; (c) abide by any reasonable entry rules or requirements of Seller; (d) not interfere with existing operations or occupants of the Property; and (e) restore the Property to its original condition if altered due to inspections, assessments that Buyer completes or causes to be completed. Page 4 of 13 --_--..-.zfx Commercial Contract -Improved Property concerning ^ (d) copies of all notes and deeds of trust against the Property that Buyer will assume or that Seller will not pay in full on or before closing; ^ (e) copies of all current service, maintenance, and management agreements relating to the ownership and operation of the Property; ^ (f} copies of current utility capacity letters from the Property's water and sewer service provider; ^ (g) copies of all current warranties and guaranties relating to all or part of the Property; ^ (h) copies of fire, hazard, liability, and other insurance policies that currently relate to the Property; ^ (i) copies of all leasing or commission agreements that currently relate to all or part of the Property; ^ (j) a copy of the "as-built" plans and specifications and plat of the Property; O (k) copies of all invoices for utilities and repairs incurred by Seller for the Property in the 24 months immediately preceding the effective date; ^ (I) a copy of Sellers income and expense statement for the Property from to ^ (m)copies of all previous environmental assessments, geotechnical reports, studies, or analyses made on or relating to the Property; ^ (n) real 8 personal property tax statements for the Property for the previous 2 calendar years; and [~ (p) An documentation that Seller has as to the condition or title _______ _. ,..a +t,ar ahv has Dossession of. (2) Return of Property Information: If this contract terminates for any reason, Buyer will, not later than 10 days after the termination date: (a) return to Seller all those items described in Paragraph 7D(1) that Seller delivered to Buyer and all copies that Buyer made of those items; and (b) deliver copies of all inspection and assessment reports related to the Property that Buyer completed or caused to be completed. This Paragraph 7D(2) survives termination of this contract. E. Contracts Affecting Operations: Until closing, Seller: (1) will operate the Property in the same manner as on the effective date under reasonably prudent business standards; and (2) will not transfer or dispose of any part of the Property, any interest or right in the Property, or any of the personal property or other items described in Paragraph 28 or sold under this contract. After the feasibility period ends, Seller may not enter into, amend, or terminate any other contract that affects the operations of the Property without Buyer's written approval. 8. LEASES: Seller has no leases on the property and it is vacant. A. Each written lease Seller is to assign to Buyer under this contract must be in full force and effect according to its terms. Seller may not enter into any new lease, fail to comply with any existing lease, or make any amendment or modification to any existing lease without Buyer's written consent. Seller must disclose, in writing, if any of the following exist at the time Seller provides the leases to the Buyer or subsequently occur before closing: {i) any failure by Seller to comply with Seller's obligations under the leases; {2) any circumstances under any lease that entitle the tenant to terminate the lease or seek any offsets or damages; (3) any non-occupancy of the leased premises by a tenant; (4) any advance sums paid by a tenant under any lease; (5) any concessions, bonuses, free rents, rebates, brokerage commissions, or other matters that affect any lease; and (6) any amounts payable under the leases that have been assigned or encumbered, except as security for loan{s) assumed or taken subject to under this contract. B. Estoppel Certificates: Within days after the effective date, Seller will deliver to Buyer estoppel certificates signed not earlier than by each tenant that leases space in the Property. The estoppel certificates must state. and Seller _ , _ Page 5 of 13 (TAR-1601) 10-18-05 Initialed for Identification by Buyer _, _ ` ........,.., ~.:., ,_m o...n~..ee ...:,w r... c,.....m ,... .:.., ....... ~envn nave., ~noe o,.~e ~.~<>, u;-,.:,.~_ ennoc Commercial Contract -Improved Property concerning (1) that no default exists under the lease by the landlord or tenant as of the date the estoppel certificate is signed; (2) the amount of the scheduled rents to be paid through the end of the lease and any rental payments that have been paid in advance; (3) the amount of any security deposit; (4) the amount of any offsets tenant is entitled against rent; (5) the expiration date of the lease; (6) a description of any renewal options; and (~) 9. BROKERS: There are no brokers. A. The brokers to this sale are: License No. Principal Broker License No. Cooperating Broker Phone Fax Phone E-mail. E-mail-. Cooperating Broker represents buyer. Principal Broker: (Check only one boxj ^ represents Seller only. ^ represents Buyer only. ^ is an intermediary between Seller and Buyer. B. Fees: (Check only one box.) ^ (1) Seller will pay Principal Broker the fee specified by separate written commission agreement between Principal Broker and Seller. Principal Broker will pay Cooperating Broker the fee specified in the Agreement Between Brokers found below the parties' signatures to this contract. ^ (2) At the closing of this sale, Seller will pay: Cooperating Broker a total cash fee of: Principal Broker a total cash fee of ^ % of the sales price. ^ % of the sales price. ^ ^ The cash fees will be paid in County, Texas. Seller authorizes escrow agent to pay the brokers from the Seller's proceeds at closing. NOTICE: Chapter 62, Texas Property Code, authorizes a broker fo secure an earned commission with a lien against the Property. C. The parties may not amend this Paragraph 9 without the written consent of the brokers affected by the amendment. -- 10. CLOSING: July 15, 2009 A. The closing of the sale wdl be on or before or within 7 days after objections made under Paragraph 6D have been cured or waived, whichever date is later (the closing date). d s u r Page 6 of 13 (TAR-1801) 10-18-OS Initialed for Identifcation by Buyer _,- an e e _, - Produced waf, ZipFom~ W zip~ogix 18070 Ffleen Mile Road, Fraser, Mkhigan d80Z6 vn+w zb~oaix.tom Commercial Contract -Improved Property concerning B. If either party fails to close by the closing date, the non-defaulting party may exercise the remedies in Paragraph 15, ecial warranty C. At closing, Seller will execute and deliver to Buyer, at Sellers expense, a ^ general ®sp orndiey good and indefeas b e title to the (Property and show no elxceptions othernthan hose pedrm ted under Paragraph 6 or other provisions of this contract. Seller must convey the Property: (1) Property (which will not be sat sfiednout of t e sales price unless stecuring IoanslBuyer assumest the (2) without any assumed loans in default; and (3) with no persons in possession of any part of the Property as lessees, tenants at sufferance, or trespassers except tenants under the written leases assigned to Buyer under this contract. D. At closing, Seller, at Seller's expense, will also deliver [o Buyer'. (1) tax statements showing no delinquent taxes on the Property; ersonal (2) a bill of sale with warranties to title conveying title, free and clear of all liens, to any p property defined as part of the Property in Paragraph 2 or sold under this contract; (3) an assignment of all leases to or on the Property; (4) to the extent that the following items are assignable, an assignment to Buyer of the following items as they relate to the Property or its operations: (a) licenses and permits; (b) maintenance, management, and other contracts; and (c) warcanties and guaranties; (5) a rent roll current on the day of the closing certified by Seller as true and correct; (6) evidence that the person executing this contrail is legally capable and authorized to bind Seller, (7) an affidavit acceptable to the escrow agent stating that Seller Is not a foreign person or, if Seller is a foreign person, a written authorization for the escrow agent to: (i) withhold from Seller's proceeds an amount sufficient to comply applicable tax law; and (ii) deliver the amount to the Internal Revenue Service together with appropriate tax forms; and (8) any notices, statements, certificates, affidavits, releases, and other documents required by this policy alltof whi h must be~ ompleted and executed by Sellerfas necessary the issuance of the title E. At closing, Buyer will: (1) pay the sales price in good funds acceptable to the escrow agent; (2) deliver evidence that the person executing this contract is legally capable and authorized to bind Buyer; (3) sign and send to each tenant in the Property a written statement that: (a) acknowledges Buyer has received and is responsible for the tenant's security deposit, and (b) specifies the exact dollar amount of the security deposit; (4) sign an assumption of all leases then in effect; and this (5) execute and deliver any notices, statements, certificates, or other documents required by contract or law necessary to close the sale. F. Unless the parties agree otherwise, the closing documents will be as found in the basic forms in the current edition of the State Bar of Texas Real Estate Forms Manual without any additional clauses. 11. POSSESSION: Seller will deliver possession of the Property to Buyer upon closing and funding of this sale and teaeexcepted.ItAny possessionpby Buyeebeforelcglos ngtor by Seller afterrclosing that is ~otdlauthorized by a separate written lease agreement is alandlord-tenant at sufferance relationship between the parties. (TAR-1801) 10-16-OS Page 7 of 13 and Seller _ . - Indialed for Identification by Buyer _ , -- Produced wdh ZipFort*rD by zipLogx 18070 Ffleen Mile Road, Fraser, Michigan 48026 vw.w i p~odx mm _..........zfx Commercial Contract -Improved Property concerning 72. SPECIAL PROVISIONS: (identify exhibit if special provisions are contained in an attachment) (a) This sale or transfer is conditioned on the purchase by the City of Port Arthur of any and all interest, if any, of Billy Williams in the adjacent Tract 116. ert owned by the (b) If the City purchases Tract 128 and any othertPrownedyby Diane_ Estate of George Welch, as well as the prop y Jackson, in Block 8, Range 5, of the Town of Sabine Pass, the City will pay all closing costs and all back ad valorem taxes. 13. SALES EXPENSES: A. Sellers Expenses: Seller will pay for the following at or before closing: (1) releases of existing liens, other than those liens assumed by Buyer, including prepayment penalties and recording fees; (2) release of Seller's loan liability, if applicable; (3~ta3c~stater~+ertts tx cerEificates, (#r pfeparatiort of the~eed~nd~np tirHbf sale;- (5rerte-~falf ot`any-escmvrfee- (6} Bests hrrecorc~any~fOCarcrerttsto cvreiitle ~objecticxrs-that~eHeFrndst~trre; aad (7) other expenses that Seller will pay under other provisions of this contract. B. Buyers Expenses: Buyer will pay for the following at or before closing: (1) all loan expenses and fees; (2) preparation fees of any deed of trust; (3) recording fees for the deed and any deed of trust; (4) premiums for flood and hazard insurance as may be required by Buyers lender; (5) one-half of any escrow fee; and (6) other expenses that Buyer will pay under other provisions of this contract. 14. PROBATIONS: A. Prorations: (1) Interest on any assumed loan, taxes, rents, and any expense reimbursements from tenants will be prorated through the closing date. (2) If the amount of ad valorem taxes for the year in which the sale closes is not available on the closing date, taxes will be prorated on the basis of taxes assessed in the previous year. If the taxes for the year in which the sale closes vary from the amount prorated at closing, the parties will adjust the prorations when the tax .statements for the year in which the sale closes become available. This Paragraph 14A(2) survives closing. (3) If Buyer assumes a loan or is taking the Property subject to an existing lien, Seller will transfer all reserve deposits held by the lender for the payment of taxes, insurance premiums, and other and Seller _, _ Page 8 of 13 (TAR-1601} 10-18-05 Initialed for Identification by Buyer _, _ __.__.__.~'x Produced vrit~ ZipFortrrD by zipLOgiz 18070 Fifteen Mle Road, maser, Michigan 48028 v+~w+~ ~~~ art' Commercial Contract -Improved Property concerning charges to Buyer at closing and Buyer will reimburse such amounts to Seller by an appropriate adjustment at closing. B Ralluation on the Propeelrty c a medsby Seller efsuhts nrohe assessment of add tional taxes! penaltiesClor interest (assessments) for periods before closing, the assessments will be the obligation of Seller. If this sale or Buyers use of the Property after closing results in additional assessments for periods before closing, the assessments will be the obligation of Buyer. This Paragraph 146 survives closing. C. Rent and Security Deposits: At closing, Seller will tender to Buyer all security deposits and the following advance payments received by Seller for periods after closing: prepaid expenses, advance rental payments, and other advance payments paid by tenants. Rents prorated to one party but received by the other party will be remitted by the recipient to the party to whom it was prorated within 5 days after the rent is received. This Paragraph 14C survives closing. 95. DEFAULT: A. If Buyer fails to comply with this contract, Buyer is in default and Seller may: (1) terminate this contract and receive the earnest money as liquidated damages, thereby releasing the parties from this contract; or (2) enforce specific performance, or seek other relief as may be provided by law, or both. B. If, without fault, Seller is unable within the time allowed to deliver the estoppel certificates, survey or the commitment, Buyer may: (1) terminate this contract and receive the earnest money, less any independent consideration un er Paragraph 76(1), as the sole remedy; or (2) extend the time for performance up to 15 days and the closing will be extended as necessary. C. Except as provided in Paragraph 158, if Seller fails to comply with this contrail, Seller is in default and Buyer may: (1) terminate this contract and receive the earnest money, less any independent consideration un er Paragraph 76(1), as liquidated damages, thereby releasing the parties from this contract; or (2) enforce specific performance, or seek such other relief as may be provided by law, or both. 16. CASUALTY LOSS AND CONDEMNATION: A. If any part of the Property is damaged or destroyed by fire or other casualty after the effective date, Seller must restore the Property to its previous condition as soon as reasonably possible and not later than the closing date. lf, without fault, Seller is unable to do so, Buyer may: (1) terminate this contract and the earnest money, less any independent consideration under Paragraph 78(1), will be refunded to Buyer; (2) extend the time for performance up to 15 days and closing will be extended as necessary; or (...) (3) accept at closing: (i) the Property in its damaged condition; (ii) an assignment of any insurance proceeds Seller is entitled to receive along with the insurer's consent to the assignment; and 111 a credit to the sales price in the amount of any unpaid deductible under the policy for the loss. B. If before closing, condemnation proceedings are commenced against any part of the Property, Buyer may: (1) terminate this contract by providing written notice to Seller within 15 days after Buyer is advised o the condemnation proceedings and the earnest money, less any independent consideration under Paragraph 78(1), will be refunded to Buyer; or (2) to p(a)rSellerdand thehsales pe ce willnber~educded by theasamewamount; or (b)yBuyerl antd the slale9 price will not be reduced. Page 9 of 13 Initialed for Identification by Buyer _ , -and Seller _. --- (TAR-1801) 10-18-OS _.._....-.zfx Produced •rilh Z~pFom4 cy zipLogix 18070 FAteen Mile Roed, Fraser, Michigan 48026 wx. 2 aloa corn Commercial Contract -Improved Property concerning 17. ATTORNEY'S FEES: If Buyer, Seller, any broker, or any escrow agent is a prevailing party in any legal proceeding brought under or with relation to this contract or this transaction, such party is entitled to recover from the non-prevailing parties all costs of such proceeding and reasonable attorney's fees. This Paragraph 17 survives termination of this contract. 18. ESCROW: A. At closing, the eamest money will be applied first to any cash down payment, then to Buyers closing costs, and any excess will be refunded to Buyer. B. If both parties make written demand for the earnest money, escrow agent may require payment of unpaid expenses incurred on behalf of the parties and a written release of liability of escrow agent from all parties. C. If one party makes written demand for the earnest money, escrow agent will give notice of the demand by providing to the other party a copy of the demand. If escrow agent does not receive written objection to the demand from the other party within 15 days after the date escroma9nntdemand, reduced by the other party, escrow agent may disburse the earnest money to the parry 9 amount of unpaid expenses incurred on behalf of the party receiving the eamest money and escrow agent may pay the same to the creditors. 0. Escrow agent will deduct any independent consideration under Paragraph 7B(1) before disbursing any eamest money to Buyer and will pay the independent consideration to Seller. E. If escrow agent complies with this Paragraph 18, each party hereby releases escrow agent from all claims related to the disbursal of the earnest money. F. Notices under this Paragraph 18 must be sent by certified mail, return receipt requested. Notices to escrow agent are effective upon receipt by escrow agent. 19. MATERIAL FACTS: To the best of Seller's knowledge and belief: {Check only one box.) f~A. Seller is not aware of any material defects to the Property exceHUrricaanel Ike.att Thed Property Condition Statement. The property was damaged by ro ert is now vacant- structures have been demolished and removed. The p P Y ~ B. Except as otherwise provided in this contract, Seller is not aware of: (1) any subsurface: structures, pits, waste, springs, or improvements; (2) any pending or threatened litigation, condemnation, or assessment affecting the Property; (3) any environmental hazards or conditions that materially affect the Property; (4) whether the Property is or has been used for the storage or disposal of hazardous materials or toxic waste, a dump site or landfill, or any underground tanks or containers; (5) whether radon, asbestos containing materials, urea-formaldehyde foam insulation, lead-based paint, toxic mold (to the extent that it adversely affects the health of ordinary occupants), or other pollutants or contaminants of any nature now exist or ever existed on the Property; (6) any wetlands, as defined by federal or state law or regulation, on the Property; (7) any threatened or endangered species or their habitat on the Property; (8) any present or past infestation of wood-destroying insects in the Property's improvements; (9) any contemplated material changes to the Property or surrounding area that would materially and detrimentally affect the ordinary use of the Property; (10) any material physical defects in the improvements on the Property; or (11) any condition on the Property that violates any law or ordinance. (Describe any exceptions to (1)-(11) in Paragraph 12 or an addendum.) andSeller_.- Page 10 of 13 (TAR-18011 10-18-05 Initialed for Identification by Buyer _, -- -.._..---.zfz Loa rz wm Produced with ZipFOmd9 by zipLogix 7a070 FRren Mile Road. Fraser, Mkbgan Aa026 `^^~ Commercial Contract -Improved Property concerning 23. ADDITIONAL NOTICES: er's selection, or A. Buyer should have an abstract covering the Property examined by an attorney of Buy Buyer should be furnished with or obtain a title policy. B Iortfloodocontrollsfacliteesand selrvices~Chapter ggrilTexastWadtertrCode~requ9esaSelleeto de ver and Buyer to sign the statutory notice relating to the tax rate, bonded indebtedness, or standby fees of the district before final execution of this contract. described below, that you are about to C- Notice Required by §13257, Water Code' "The real property, purchase may be located in a certificated water or sewer service area, which is authorized by law o Is located in a before ou can provide water or sewer service to the properties in the certifcated area. If your property certificated area there may be special costs or charge d aequ edlto constructdll~esaor other facilities receive water or sewer service. There may be a P ro ert You are advised to determine if the necessary to provide water or sewer service to your p p Y property is in a certia and thea eriodc fnany, t at isllrequi ed t Ppro vde watder or sewer service totyour will be required to p y P property. The undersigned purchaser hereby acknowledges receipro erte des c bed nntthe not ce oat the execution of a binding contract for the purchase of the real p P Y closing of purchase of the real property." The real property is described in Paragraph 2 of this contract. D. If the Property adjoins or shares a common boundary with the tidally influenced submerged lands oft e state, §33.135, Texas Natural Resources Code requires a notice regarding coastal area property to be included as part of this contract. s Natural Resources H. If the Property is located seaward of the Gulf Intracoastal Waterway, §61.025, Texa art of this Code, requires a notice regarding the seaward location of the Property to be included as p contract. ~. If the Property is located outside the limits of a municipality, the Property may now or later be include in the extra-territorial jurisdiction (ETJ) of a municipality and may now or later be subject to annexation determineuif ItheaProperty hs ocateld within al mun cipalityasETJt Bu yertshould ~ontdacc all mudniapalities located in the general proximity of the Property for further Information. G law requieessa lead-based painlt andlhazard disc osure statementto betmade part lofbthlsrcontra8{federal Section 1958.154, Occupations Code requires Seller to provide Buyer a copy of any mold remediation certificate issued for the Property during the 5 years preceding the date the Seller sells the Property. Brokers are not qualified to perform property inspections, surveys, engineering studies, environmenta overnmental regulations, or laws. assessments, or inspections to determine compliance with zoning, g Buyer should seek experts to perform such services. Selection of experts, inspectors, and repairmen is the responsibility of Buyer and not the brokers. t lutes an offer to buy or sell 26. CONTRACT the Properly. located, on _ AS OFFER: The exec Unless the other party May 10, 2009, Ilion of this contract by the first party cons I accephe offeffwillbapse and becometnull andvoldwhich the Property is Page 12 of 1 and Seller _ , -- (TAR-1801) 10-18-05 Indialed for Identification by Buyer _. - -'- -- z Produced wile ZipFortrd~ by zip~c9~ 180T0 Ffieen Mile Road, Fraser, Michigan a80'LB `^"~^"~ pLOQIX mm Ccmmercial Contract -Improved Property concerning READ THIS CONTRACT CAREFULLY. The brokers and agents make no representation or recommendation as to the legal sufficiency, legal effect, or tax consequences of this document or transaction. CONSULT your attorney BEFORE signing. Buyer: By _ Printed Name: Ci of Port Arthur Title: Seller: By: Printed Name: Diane Jackson Individually and as Executor Title: F F fa+P of George Welch Seller: Buyer: By: By: Printed Name: Punted Name: Title: Title: AGREEMENT BETWEEN BROKERS (Cooperating Broker) a Principal Broker agrees to pay % of the sales price when the Principal Broker's fee Is fee of $ or _---- ted to pay d direc n ti B p r Br a ooP received. Escrow agent is authoriz p o ed an compensa for agreements and offer o~ y kers su ersedes an p B closing. This Agreement Between ro between brokers. Principal Broker Cooperating Broker By. By. ATTORNEYS Sellers attorney is: Buyer's attorney is: Name: Name: Address. Address: Phone 8 Fax: Phone & Fax-. E-mall. Buyers atfomey requests copies of documents, notices, and other information. ^ the title company sends to Buyer. ^ Seller sends to Buyer. E-mail: Sellers attorney requests copies of documents, notices, and other information: ^ the title company sends to Seller. ^ Buyer sends to Seller. ESCROW RECEIPT Escrow agent acknowledges receipt of: (effective date), ^ A. the contract on this day in the form of ^ B. earnest money in the amount of $ on __ Address: Escrow Agent: Phone & Fax: By: E-mail: Page 13 of 13 (TAR-1801) 10-18-05