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HomeMy WebLinkAbout15-161CITY OF LAKEVILLE DAKOTA COUNTY, MINNESOTA RESOLUTION 15-161 RESOLUTION APPROVING THE ACQUISITION OF REAL PROPERTY AND DISPENSING WITH STATUTORY REQUIREMENTS FOR REVIEW BY PLANNING COMMISSION OF DISPOSAL OF PROPERTY WHEREAS, the City is proposing to acquire certain property ("Property") legally described as: All of Lots 5 through 8, Block 3, except par 63 MN DOT R/W Plat 19-120, Lenihan's Lot Antlers Park, Dakota County, Minnesota; WHEREAS, The Bank of New York Mellon and the City have negotiated terms for the acquisition of the Property as provide in the proposed purchase agreement attached hereto as Exhibit "A" ("Purchase Agreement"); WHEREAS, Minn. Stat. § 462.356, subd. 2 requires that the Planning Commission review the City's proposed acquisitions and dispositions of property, and; WHEREAS, Minn. Stat. § 462.356, subd. 2 provides for an exception from the Planning Commission review requirement upon 2/3 vote of the City Council dispensing with the requirement and finding that the acquisition or disposal of the property has no relationship to the comprehensive municipal plan. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Lakeville that: 1. The Purchase Agreement is hereby approved. 2. The acquisition of the Property under the Purchase Agreement has no relationship to the comprehensive municipal plan. 3. Review by the Planning Commission of the acquisition of the Property is hereby dispensed with, the proposed transaction is hereby approved, and the City Administrator is authorized and directed to execute the Purchase Agreement and Addendums and all documents necessary to complete the transaction. 183676v1 ADOPTED this 7th day of December, 2015, by a 2/3 vote of the Lakeville City Council CITY OF LAKEVILLE zf BY: Matt L ttle, Mayor ATTEST: Charlene Friedges, City C k 183676v1 AuC M W"A477 7FaM8184AAE­4C15W4F6M cc PURCHASE AGREEMENT KED This torn approved by the Minnesota Association of REALTORS", which disclaims any liability arising out of use or misuse of tills toren. O 2015 Minnesota Association of REALTORS6, Edina, MN PAF.MTF.R REALTY® 1. Date 11/2/2015 SOUTH SUBURBAN 2. Page 1 of 3. BUYER (S): city of Lakeville ,-= 4. 5. Buyer's earnest money in the amount of 6. one Thousand Dollars ($ 1,000.00 ) 7. shall be delivered to listing broker no later than two (2) Business Days after Final Acceptance Date of this Purchase 8. Agreement. Buyer and Seller agree that listing broker shall deposit any earnest money in the listing broker's trust 9. account within three (3) Business Days of receipt of the earnest money or Final Acceptance Date of this Purchase 10. Agreement, whichever is later. 11. Said earnest money is part payment for the purchase of the property located at 12. Street Address: 19930 Kenwood Trail 13. City of Lakeville , County of Dakota 14. 15. 16. 17. 18. 19. 20. 21. 22. 23. 24. 25. 26. 27. 28. 29. 30. State of Minnesota, legally described as LENIAANS LOTS ANTLERS PARK 8 3 ALL Or LOTS 5 TARP 8 BLK 3 EX PAR 63 Dpi DOT R/ill PLAT 19-120 Said purchase shall include all improvements, fixtures, and appurtenances on the property, if any, including but not limited to, the following (collectively the "Property): garden bulbs, plants, shrubs, trees, and lawn watering system; shed; storm sash, storm doors, screens and awnings; window shades, blinds; traverse, curtain, and drapery rods, valances, drapes, curtains, window coverings and treatments, towel rods; attached lighting and bulbs; fan fixtures; plumbing fixtures; garbage disposals; water softener, water treatment system; water heating systems, heating systems; air exchange system; radon mitigation system; sump pump; TV antennatcable TV jacks and wiring1TV wall mounts; wall/ceiling-mounted speakers and mounts; carpeting; mirrors; garage door openers and all controls; smoke detectors; fireplace screens, door and heatilators; BUILT-INS: dishwashers; refrigerators; wine/beverage refrigerators; trash compactors; ovens; cook -top stoves; warming drawers; microwave ovens; hood fans; shelving; work benches; intercoms; speakers; air conditioning equipment; electronic air filter; humidifier/dehumidifier; liquid fuel tanks (and controls); pooVspa equipment; propane tank (and controls); security system equipment; TV satellite dish; AND the following personal property shall be transferred with no additional monetary value, and free and clear of all liens and encumbrances: NL NA 31. Notwithstanding the foregoing, leased fixtures are not included. 32. Notwithstanding the foregoing, the following item(s) are excluded from the purchase: 33. ren 34. Nh 35. Seller has agreed to sell the Property to Buyer for the sum of ($ 171, 600.00 ) 36. One Hundred seventy -ons Thousand six Hundred Dollars, 37. which Buyer agrees to pay in the following manner: 38. 1. CASH of 100 percent (%) of the sale price, or more in Buyer's sole discretion, which Includes the earnest 39. money; PLUS 40. 2. FINANCING of 0 percent (%) of the sale price, whir will be the total amount secured against this 41. Property to fund this purchase. 42. Such financing shall be (check one) ❑ a first mortgage; ❑ a contract for deed; or ❑ a first mortgage with 43. subordinate financing, as described in the attached Addendum: 44. ❑ Contrentional ❑ FHA ❑ DVA ❑ Assumption ❑ Contract for Deed © Other: Cas 45. The date of dosing shall be oa or before 12028 20 15 MWA-1 (8/15) = i P Audmdh p ra aenn�rraPen�{�w -CISOFV5654 - a PURCHASE AGREEMENT WEUUAMS rRRMIBA REALTY 46. Page 2 Date 11/2/2015 $0UTH SUBURBAN 47. Property located at 19930 Kenwood Trail Lakeville NN 55044 48. SALE OF BUYER'S PROPERTY CONTINGENCY: This Purchase Agreement ❑ IS ® IS NOT subject to an -(Chk* 0ne.}- 49. Addendum to Purchase Agreement Sale of Buyer's Property Contingency. (If answer is IS, see attached Addendum.) 50. (If answer is IS NOT, the closing of Buyer's property, if any, may still affect Buyer's ability to obtain financing, If 51. financing is applicable.) 52. This Purchase Agreement ❑ IS ® IS NOT subject to cancellation of a previously written purchase agreement -( a►a}--- `` 3. dated , 20 . (If answer is IS, said cancellation shall be obtained no later than 54• .20 . If said cancellation is not obtained by said date, this Purchase Agreement 55. is canceled. Buyer and Seller shall immediately sign a Cancellation of Purchase Agr+eementconfirming said cancellation 56. and directing all earnest money paid hereunder to be refunded to Buyer.) 57. Buyer has been made aware of the availability of Property inspections. Buyer ❑ Elects © Declines to have a 58. Property inspection performed at Buyer's expense. (cOM4-- 59. INSPECTION CONTINGENCY: This Purchase Agreement ❑ IS © IS NOT subject to an Addendum to Purchase -OM).- 60. Agreement Inspection Contingency. (If answer is IS, see attached Addendum.) 61. DEED/MARKETABLE TITLE: Upon performance by Buyer, Seller shall deliver a (check one): 62. ❑ Warranty Deed, ❑ Personal Representative's Deed, ❑ Contract for Deed, ❑ Trustee's Deed, or 63. ® Other: - special warranty Deed joined in by spouse, if any, conveying marketable title, subject to 64. (a) building and zoning laws, ordinances, and state and federal regulations; 65. (b) restrictions relating to use or improvement of the Property without effective forfeiture provisions; 66. (c) reservation of any mineral rights by the State of Minnesota; 67. (d) utility and drainage easements which do not Interfere with existing improvements; 68. (e) rights of tenants as fopows (unless specified, not subject to tenancies): Nk 69. MR ;and 70. (f) others (must be specified in writing): rm 71. m► 72. REAL ESTATE TAXES: Seller shall pay on the date of dosing all real estate taxes due and payable in all prior years 73. including all penalties and interest. 74. Buyer shall pay © PRORATED FROM DAY OF CLOSING ❑ 12ths OF[] ALL ❑ NO real estate taxes due (Cheek 75. and payable in the year 20 15 76. Seller shall pay Q PRORATED TO DAY OF CLOSING ❑ 12ths OF ❑ ALL ❑ NO real estate taxes due and (Check are) 77. payable in the year 20 15 . If the closing date Is changed, the real estate taxes paid shall, if prorated, be adjusted 78. to the new dosing date. If the Property tax status is a part- or non -homestead classification in the year of closing, Seller 79. ❑ SHALL ® SHALL NOT pay the difference between the homestead and non -homestead. f-- a *.)------ 80. Buyer shall pay real estate taxes due and payable in the year following closing and thereafter, the payment of which 81. is not otherwise herein provided. No representations are made concerning the amount of subsequent real estate taxes. 82. DEFERRED TAXES/SPECIAL ASSESSMENTS: 83. ❑ BUYER SHALL PAY ® SELLER SHALL PAY on date of dosing any deferred real estate taxes (e.g., Green Check are.) 84. Acres) or special assessments, payment of which is required as a result of the dosing of this sale. 85. Q BUYER AND SELLER SHALL PRORATE AS OF THE DATE OF CLOSING ❑ SELLER SHALL PAY ON Check erre. 86. DATE OF CLOSING all Installments of special assessments certified for payment, with the real estate taxes due and 87. payable in the year of dosing. MMPA 2 (8N5) Audw&dp Gh 6E"A477AFEt AAE.4C750F05654 W --RUJIM4 PURCHASE AGREEMENT MAMS PRRUI R REB UALTY 88. Page 3 Date 11/2/2015 BA 89. Property located at 19930 KWW00d Trail Lakeville NK 55044 90. ® BUYER SHALL ASSUME ❑ SELLER SHALL PAY on date of dosing all other special assessments levied as one. 91. of the date of this Purchase Agreement. 92. ® BUYER SHALL ASSUME ❑ SELLER SHALL PROVIDE FOR PAYMENT OF special assessments pending as CAstic avti� 93, of the date of this Purchase Agreement for improvements that have been ordered by any assessing authorities. (Seller's 94. provision for payment shall be by payment into escrow of two (2) times the estimated amount of the assessments 95. or less, as required by Buyer's lender.) 96. Buyer shall pay any unpaid special assessments payable in the year following dosing and thereafter, the payment of 97. which is not otherwise herein provided. 98. As of the date of this Purchase Agreement, Seller represents that Seller ❑ HAS © HAS NOT received a notice (Chet* am) -- 99. regarding any new improvement project from any assessing authorities, the costs of which project may be assessed 100. against the Property. Any such notice received by Seller after the date of this Purchase Agreement and before dosing 101. shall be provided to Buyer immediately. If such notice is Issued after the date of this Purchase Agreement and on 102. or before the date of dosing, then the parties may agree in writing, on or before the date of dosing, to pay, provide 103. for the payment of or assume the special assessments. in the absence of such agreement, either party may declare 104. this Purchase Agreement canceled by written notice to the other party, or licensee representing or assisting the other 105. party, in which case this Purchase Agreement is canceled. If either party declares this Purchase Agreement canceled, 106. Buyer and Seller shall immediately sign a Cancellation of Purchase Agreement confirming said cancellation and 107. directing all earnest money paid hereunder to be refunded to Buyer. 108. POSSESSION: Seller shall deliver possession of the Property no later than Immediately after closing. 109. Seller agrees to remove ALL DEBRIS AND ALL PERSONAL PROPERTY NOT INCLUDED HEREIN from the Property 110. by possession date. 111. LINKED DEVICES: Seller warrants that Seller shall permanently disconnect or discontinue Seller's access or service 112. to any device or system on or serving the property that is connected or controlled wirelessly, via Internet protocol (°IP') 113. to a router or gateway or directly to the cloud no later than delivery of possession as specified in this Purchase 114. Agreement. 115. PRORATIONS: All interest; unit owners' association dues; rents; and charges for city water, city sewer, electricity and 116. natural gas shall be prorated between the parties as of date of closing. Buyer shall pay Seller for remaining gallons of 117. fuel oil or liquid petroleum gas on the day of dosing, at the rate of the last fill by Seller. 118. TITLE AND EXAMINATION: As quickly as reasonably possible after Final Acceptance Date of this Purchase Agreement: 119. (a) Seller shall deliver any abstract of titre and a copy of any owner's title insurance policy for the Property, if 120. in Seller's possession or control, to Buyer or Buyer's designated tithe service provider. Any abstract of title or 121. owner's title insurance policy provided shall be immediately returned to Seller, or licensee representing or 122. assisting Seller, upon cancellation of this Purchase Agreement; and 123. (b) Buyer shall obtain the titre services determined necessary or desirable by Buyer or Buyer's lender, including 124. but not limited to title searches, tide examinations, abstracting, a title insurance commitment or an attorney's 125. tide opinion at Buyer's selection and cost and provide a copy to Seller. 126. Seller shall use Seller's best efforts to provide marketable title by the date of closing. Seller agrees to pay all costs 127. and fees necessary to convey marketable title including obtaining and recording all required documents, subject to the 128. following: 129. In the event Seller has not provided marketable title by the date of closing, Seller shall have an additional 30 days to 130. make title marketable, or in the alternative, Buyer may waive tide defects by written notice to Seller. In addition to 131. the 30 -day extension, Buyer and Seller may, by mutual agreement, further extend the closing date. Lacking such 132. extension, either party may declare this Purchase Agreement canceled by written notice to the other party, or 133. licensee representing or assisting the other party, in which case this Purchase Agreement is canceled. If either 134. party declares this Purchase Agreement canceled, Buyer and Seiler shall immediately sign a Cancellation of 135. Purchase Agreement confirming said cancellation and directing all earnest money paid hereunder to be refunded 136. to Buyer. MNAA.9 (8115) KELLER PURCHASE AGREEMENT TRFMIFR RF.ALTT137. Page 4 Date 11/2/2015 SOUTH SUB URBA\ 138. Property located at 19930 Kenwood Trail Lakeville NN 55044 139. SUBDIVISION OF LAND, BOUNDARIES, AND ACCESS: If this sale constitutes or requires a subdivision of land 140. owned by Seller, Seller shall pay all subdivision expenses and obtain all necessary governmental approvals. Seller 141. warrants that the legal description of the real property to be conveyed has been or shall be approved for recording as 142. of the date of closing. Seller warrants that the buildings are or shall be constructed entirely within the boundary lines 143. of the Property. Seller warrants that there is a right of access to the Property from a public right-of-way. 144. MECHANIC'S LIENS: Seller warrants that prior to the closing, payment in full will have been made for all labor, materials, 145. machinery, fixtures or tools furnished within the 120 days immediately preceding the closing in connection with 146. construction, alteration or repair of any structure on, or improvement to, the Property. 147. NOTICES: Seller warrants that Seller has not received any notice from any govemmental authority as to condemnation 148. proceedings, or violation of any law, ordinance or regulation. if the Property is subject to restrictive covenants, Seller 149. warrants that Seller has not received any notice from any person or authority as to a breach of the covenants. Any 150. such notices received by Seller shall be provided to Buyer immediately. 151. DIMENSIONS: Buyer acknowledges any dimensions, square footage or acreage of land or improvements provided 152. by Seiler, third party, or broker representing or assisting Seller are approximate. Buyer shall verify the accuracy of 153. information to Buyer's satisfaction, if material, at Buyer's sole cost and expense. 154. ACCESS AGREEMENT: Seller agrees to allow reasonable access to the Property for performance of any surveys or 155. inspections agreed to herein. 156. WF LOSS: If there is any loss or damage to the Property between the date hereof and the date of closing for any 157. ,including fire, vandalism, flood, earthquake or act of God, the risk of loss shall be on Seller. If the Property 158. Is destroyed or substantially damaged before the closing date, this Purchase Agreement is canceled, at Buyers option, 159. t atter notice to Seller or licensee representing or assisting Seiler. N Buyer cancels this Purchase Agreement, 160. Buyer and Seller shall immediately sign a Cancellation of Purchase Agreement confirming said cancellation and 161. directing all lamest money paid hereunder to be refunded to Buyer. 162. TIME OF ESSENCE: Time is of the essence in this Purchase Agreement. 163. CALCULATION OF DAYS: Any calculation of days begins on the first day (calendar or Business Days as specified) 164. following the occurrence of the event specified and includes subsequent days (calendar or Business Days as specified) 165. ending at 11:59 P.M. on the last day. 166. BUSINESS DAYS: "Business Days" are days which are not Saturdays, Sundays or state or federal holidays unless 167. stated elsewhere by the parties in writing. 168. RELEASE OF EARNEST MONEY. Buyer and Seller agree that the listing broker shall release lamest money from the 169. listing brokers trust account: 1) at or upon the successful dosing of the Property; 2) pursuant to written agreement 170. between the parties, which may be reflected in a Cancellation o/ Purchase Agreement executed by both Buyer and 171. Seller; 3) upon receipt of an affidavit of a cancellation under MN Statute 559.217; or 4) upon receipt of a court order. 172. DEFAULT. If Buyer defaults in any of the agreements herein, Seller may cancel this Purchase Agreement, and any 173. payments made hereunder, including earnest money, shall be retained by Seller as liquidated damages and Buyer 174. and Seller shall affirm the same by a written cancellation agreement. 175. If Buyer defaults in any of the agreements hereunder, Seller may terminate this Purchase Agreement under the 176. provisions of either MN Statute 559.21 or MN Statute 559217, whichever is applicable. If either Buyer or Seller defaults 177. in any of the agreements hereunder or there exists an unfulfilled condition after the date specified for fulfillment, either 178. party may cancel this Purchase Agreement under MN Statute 559.217, Subd. 3. Whenever it Is provided herein that 179. this Purchase Agreement is canceled, said language shall be deemed a provision authorizing a Declaratory Cancellation 180. under MN Statute 559217, Subd. 4. 181. If this Purchase Agreement is not canceled or terminated as provided hereunder, Buyer or Seller may seek actual 182. damages for breach of this Purchase Agreement or specific performance of this Purchase Agreement; and, as to 183. specific performance, such action must be commenced within six (6) months after such right of action arises. MNAA-4 (MS) Awn ID: 0WA 7 btA24C180F4FE884 KE=__e PURCHASE AGREEMEW WaLum PRRMiRR REALTY 184. Page 5 Date 11/2/2015 SOUTH SUBURBAN 185. Property located at 19930 Kenwood Trail Lakeville MR 55044 186. BUYER HAS THE RIGHT TO A WALK-THROUGH REVIEW OF THE PROPERTY PRIOR TO CLOSING TO 187. ESTABLISH THAT THE PROPERTY IS IN SUBSTANTIALLY THE SAME CONDITION AS OF THE DATE OF 1P8,,. -THIS PURCHASE AGREEMENT. 189.'j BUYER HAS RECEIVED A (check any that app/y� 190. ,,,,..., LJ �wvwvvnc v m ,Waiver Of sellar disclosures reed 191. DESCRIPTION OF PROPERTY CONDITION: See Disclosure Statement: SeNer's Property or Disclosure Statement: 192. Sellers Disclosure A/tematives for description of disclosure responsibilities and limitations, if any. 193. BUYER HAS RECEIVED THE INSPECTION REPORTS, IF REQUIRED BY MUNICIPALITY. 194. BUYER IS NOT RELYING ON ANY ORAL REPRESENTATIONS REGARDING THE CONDITION OFTHE PROPERTY 195. AND ITS CONTENTS. 196. (Check appropdaate boxes.) 197. SELLER WARRANTS THAT THE PROPERTY IS EITHER DIRECTLY OR INDIRECTLY CONNECTED TO: 198. CITY SEWER ®YES ❑ NO / CITY WATER ®YES ❑ NO 199. SUBSURFACE SEWAGE TREATMENT SYSTEM 200. SELLER ❑ DOES © DOES NOT KNOW OF A SUBSURFACE SEWAGE TREATMENT SYSTEM ON OR (Cho*om)---- 201. SERVING THE PROPERTY. (If answer is DOES, and the system does not require a state permit, see Disclosure 202. Statement; Subsurface Sewage Treatment System.) 203. PRIVATE WELL 204. SELLER ❑ DOES ® DOES NOT KNOW OF A WELL ON OR SERVING THE PROPERTY. --------(Chad arse 1 205. (If answer is DOES and well is located on the Property, see Disclosure Statement: Well.) 206. THIS PURCHASE AGREEMENT ❑ IS ® IS NOT SUBJECT TO AN ADDENDUM TO PURCHASE AGREEMENT (Ch9C* one }__ 207. SUBSURFACE SEWAGE TREATMENT SYSTEM AND WELL INSPECTION CONTINGENCY. 208. (If answer is IS, see attached Addendum.) 209. IF A WELL OR SUBSURFACE SEWAGE TREATMENT SYSTEM EXISTS ON THE PROPERTY, BUYER HAS 210. RECEIVED ADISCLOSURE STATEMENT- WELL AND/ORADISCLOSURE STATEMENT• SUBSURFACESEWAGE 211. TRE4T7i1ENT SYST EAI. 212. NOTICE REGARDING PREDATORY OFFENDER INFORMATION: Information regarding the predatory offender 213. registry and persons registered with the predatory offender registry under MN Statute 243.166 maybe obtained 214. by contacting the local law enforcement offices In the community where the Property is located or the Minnesota 215. Department of Corrections at (651) 361-7200, or from the Department of Corrections web site at 216. www.corr.stdo.mn.us. 217. HOME PROTECTION/WARRANTY PLAN: Buyer and Seller are advised to Investigate the various home protection/ 218. warranty plans available for purchase. Different home protection/warranty plans have different coverage options, 219. exclusions, limitations and service fees. Most plans exclude pro -existing conditions. (Check one.) 220. ❑ A Home Protection/Warranty Plan will be obtained by ❑ BUYER ❑ SELLER and paid for by 221. BUYER ❑ BUYERS❑ Seto be issued by at a cost 222. not to exceed $ 223. X❑ No Home Protection/Warranty Plan is negotiated as part of this Purchase Agreement. However, Buyer may elect 224. to purchase a Home Protection/Warranty Plan. MWA-5 (8/15) Authwdisign ID: OETTA47T 7FBAfyy_eAAE.4C150F4F5654 KFILELIAR PURCHASE AGREEMENT WEMPRF.MtER REALTY 225. Page 6 Date 11/2/2015 SOUTH SURURRA\ 226. Property located at 19930 Kenwood Trail Lakeville MN 55044 227 NOTICE 228. Laurie C Macko is ❑X Seller's Agent ❑ Buyer's Agent ❑ Dual Agent ❑ Facilitator. (Licensee) - _- -(Check one.) ----- p29, Keller Williams Premier Realty (Real Estate Company Name) 230. Dan Wilson is ❑ Seller's Agent Buyer's Agent ❑ Dual Agent ❑ Facilitator. (Licensee) -- 231, Wilson Development Services (Real Estate Company Name) 232. THIS NOTICE DOES NOT SATISFY MINNESOTA STATUTORY AGENCY DISCLOSURE REQUIREMENTS. 233. DUAL AGENCY REPRESENTATION 234. PLEASE CHECK ONEOFTHE FOLLOWING SELECTIONS: 235.XQ Dual Agency representation DOES NOT apply in this transaction. Do not complete lines 236-252. 236. ❑ Dual Agency representation DOES apply in this transaction. Complete the disclosure in lines 237-252. 237. Broker represents both the Seller(s) and the Buyer(s) of the Property involved in this transaction, which creates a 238. dual agency. This means that Broker and its salespersons owe fiduciary duties to both Seller(s) and Buyer(s). Because 239. the parties may have conflicting interests, Broker and its salespersons are prohibited from advocating exclusively for 240. either parry. Broker cannot act as a dual agent in this transaction without the consent of both Seller(s) and Buyer(s). 241. Seller(s) and Buyer(s) acknowledge that 242. (1) confidential information communicated to Broker which regards price, terms, or motivation to buy or sell will 243. remain confidential unless Seller(s) or Buyer(s) instructs Broker in writing to disclose this information. Other 244. information will be shared; 245. (2) Broker and its salespersons will not represent the interest of either party to the detriment of the other; and 246. (3) within the limits of dual agency, Broker and its salespersons will work diligently to facilitate the mechanics of 247. the sale. 248. With the knowledge and understanding of the explanation above, Seller(s) and Buyer(s) authorize and instruct Broker 249. and its salesperson to act as dual agents in this transaction. 250. Seller Buyer 251. Seller Buyer 252. Date Date 253. CLOSING COSTS: Buyer or Seller may be required to pay certain closing costs, which may effectively increase the 254. cash outlay at closing or reduce the proceeds from the sale. 255. FOREIGN INVESTMENT IN REAL PROPERTY TAX ACT ("FIRPTA"): Section 1445 of the Internal Revenue Code 256. provides that a transferee ("Buyer") of a United States real property interest must be notified in writing and must withhold 257. tax if the transferor ("Seller') is a foreign person and no exceptions from FIRPTA withholding apply. Buyer and Seller 258. agree to comply with FIRPTA requirements under Section 1445 of the Internal Revenue Code. 259. Seller shall represent and warrant, under the penalties of perjury, whether Seller is a "foreign person" (as the same 260. is defined within FIRPTA), prior to closing. Any representations made by Seller with respect to this issue shall survive 261. the closing and delivery of the deed. 262. Buyer and Seller shall complete, execute, and deliver, on or before closing, any instrument, affidavit, or statement 263. reasonably necessary to comply with the FIRPTA requirements, including delivery of their respective federal taxpayer 264. identification numbers or Social Security numbers. 265. Due to the complexity and potential risks of failing to comply with FIRPTA, including the Buyers responsibility for 266. withholding the applicable tax, Buyer and Seller should seek appropriate legal and tax advice regarding FIRPTA 267. compliance, as the respective licensee's representing or assisting either party will be unable to assure either 268. party whether the transaction is exempt from FIRPTA withholding requirements. MN:PA-6 (8/15) Insisnr�- f AudMWWp la OETlA 7PB - CISWWGM KEUER PURCHASE AGREEMENT WRLUAISC PRRMIP.R REALTT269. Page 7 Date 11/2/2015 soU7'X sUBUROAN 270. Properly located at 19930 Kenwood Trail Lakeville M 55044 271. ENTIRE AGREEMENT: This Purchase Agreement and any addenda or amendments signed by the parties shall 272. constitute the entire agreement between Buyer and Seller. Any other written or oral communication between Buyer and 273. Seller, including, but not limited to, e-mails, text messages, or other electronic communications are not part of this 274. Purchase Agreement. This Purchase Agreement can be modified or canceled only in writing signed by Seller and 275. Buyer or by operation of law. All monetary sums are deemed to be United States currency for purposes of this Purchase 276. Agreement. 277. ELECTRONIC SIGNATURES: The parties agree the electronic signature of arty party on any document related to this 278. transaction constitute valid, binding signatures. 279. FINAL ACCEPTANCE: To be binding, this Purchase Agreement must be fully executed by both parties and a copy 280. must be delivered. 281. SURVIVAL: All warranties specified in this Purchase Agreement shall survive the delivery of the deed or contract 282. for deed. 283. OTHER: 284. 285. 286. 287. 288. 289. 290. 291. 292. 293. 294. 295. 296. 297. ADDENDA AND PAGE NUMBERING: Attached addenda are a part of this Purchase Agreement. 298. Enter total number of pages of this Purchase Agreement, including addenda, on line two (2) of page one (1). 299. NOTE: Disclosures and optional Arbitration Agreement are not part of this Purchase Agreement and should 300. not be part of the page numbering. MN:A4-7 (8/15) Aww ftp ft w"Af�,w 40"Wses+ MIND PURCHASE AGREEMENT WOLIAMe TRRMIRR REALTY 301. Page 8 Date 11/2/2015 SOUTH SUBURBAN 302. Property located at 19930 Kenwood Trail Lakeville NR 55044 303. I, the owner of the Property, accept this Purchase 304. Agreement and authorize the listing broker to withdraw 305. said Property from the market, unless instructed 306. otherwise in writing. 307. 1 have reviewed all pages of this Purchase Agreement. 308. ❑ If checked, this Agreement is subject to attached 309. Addendum to Pumbese Agreement: Counteroffer, 310. 311. 312. 313. 314. 315. 316. FIRPTA: Seller represents and warrants, under penalty of perjury, that Seiler❑ ISFg] IS NOT a foreign person (i.e., a ----(ter oma -- non-resident alien individual, foreign corporation, foreign partnership, foreign trust, or foreign estate for purposes of Income taxation. (See tines 255-268.)) This representation and warranty shall survive the closing of the transaction and the delivery of the deed. �-- r2'C/L � 5 (sayers stywum) (bete) I agree to purchase the Property for the price and on the terms and conditions set forth above 1 have reviewed all pages of this Purchase Agreemeft 317. X 0-1e1jers WFIGmwe) (Date) 318. X (senses Printed Nems) 319. X (Ma►nai smus) 320. X (senses swawna) (Dee) 321. X (senses Prirked Name) 322. X t) X City of Lakeville, NX Mwees Pdnw Name) X (Mergsl 8"s) X (&+Yate swelure) (Dde) X (Buyers Primed Name) X (Markov Stan) 323. FINAL ACCEPTANCE DATE: The Final Acceptance Date 324. is the date on which the fully executed Purchase Agreement is delivered. 325. THIS IS A LEGALLY BINDING CONTRACT BETWEEN BUYER(S) AND SELLER(S). 326. IF YOU DESIRE LEGAL OR TAX ADVICE, CONSULT AN APPROPRIATE PROFESSIONAL. • • • •--•-•-�•••.�•�.�� ■ ■ am.. g -10" u- n1M%.s=1 V =W gryu nAve nAu l nt WFUKTUNITYTO R15VIEWTHIS DISCLOSURE 328. STATEMENT•ARBITRATIONDISCLOSUREANDRESID&MAL REAL PROPERTYARBMt47YONAGREEMENT, 329. WHICH IS AN OPTIONAL, VOLUNTARY AGREEMENT AND IS NOT PA8111MM PURCHASE AGREEMENT. 330. SELLER(S)tbUYER(S) � City of Lakeville, Dar 331. SELLER(S) MNAA-8 (BM5) BUYER(S) Auth 9 IS 1D: 0E77A477.7FBM01"AAE4C1WV6M ADDENDUM TO PURCHASE AGREEMENT: BUYER PURCHASING "AS IS" AND KUM LIMITATION OF SELLER LIABILITY This form approved by the Minnesota Association of REALTORS', WMUUAWO which disclaims any IiabiiKy arising out of use or misuse of this form. PREMIER RF.ALTY O 2015 Minnesota Association of REALTORSO, Edina, MN SOUTH SUBURBAN 1. Date 11/02/2015 2. Page 3. IN THE EVENT SELLER HAS COMPLETED, AND BUYER HAS RECEIVED, A 4. SELLER'S PROPERTY DISCLOSURE STATEMENT, DO NOT USE THIS 5. ADDENDUM WITHOUT FIRST SEEKING LEGAL ADVICE. 6. Addendum to Purchase Agreement between parties, dated Nov 2 .20 is , 7. pertaining to the purchase and sale of the Property located at 19930 Kenvood Trail 8. Lakeville 1®i 55044 9. Limitation of Seiler Liabi ft The Property is being sold in its existing condition. Buyer acknowledges that the Property, 10. including all improvements, Is being sold on an "As -Is" and "Where -Is" basis, with all existing faults. Prior to closing, 11. Buyer will make such inspections of the Property as are consistent with the terms of this Purchase Agreement in order 12. to satisfy Buyer as to the condition of the Property. The Seller warranties contained in the Purchase Agreement shall 13. remain unmodified by this Addendum. 14. The "Risk of Loss" provisions of the Purchase Agreement (lines 156-161) shall remain unmodified by this Addendum. 15. Seller and Buyer shall execute a Seller's Disclosure A/tematNes with the "Waiver" section completed. Seiler remains 16. obligated to make "Other Required Disclosures" in the Disclosure Statement Selleris Disclosure AltemaNves. Except 17. for "Other Required Disclosures;' Buyer acknowledges that Seller has not made any oral or written representations 18. regarding the condition of the Property subject to this Purchase Agreement. By accepting delivery of the deed at dosing, 19. Buyer will be deemed to have accepted the condition of the Property subject to this Purchase Agreement as satisfactory 20. to Buyer, and Seiler shall have no liability with respect to the condition of such Property. Buyer walves any claims 21. related in any way to the condition of the Property. 22. WARNING: THIS ADDENDUM WILL AFFECT THE LEGAL RIGHTS OF BUYER 23. AND SELLER. BUYER AND SELLER ARE STRONGLY ENCOURAGEDTO OBTAIN 24. LEGAL ADVICE BEFORE AGREEING TO THIS ADDENDUM. 25. (SeReft 8010") (Dae) (eu9ers SWOM) City of Lakeville, W (Date) 26. (severs signature) (Dae) puywt fie) (Dae) 27. THIS IS A LEGALLY BINDING CONTRACT BETWEEN BUYER(S) AND SELLER(S). 28. IF YOU DESIRE LEGAL OR TAX ADVICE, CONSULT AN APPROPRIATE PROFESSIONAL. MAMA (8/15) aw 4POWP P. aE"Aa7 7FeA481"AAE4C1W-4F0M ADDENDUM TO PURCHASE AGREEMENT DISCLOSURE OF INFORMATION ON KEIi1,ER LEAD-BASED PAINT AND LEAD-BASED PAINT HAZARDS Thio form approved by the Minnesota Association of REALTORS', AW® which disclaims any Aabft arising out of use or misuse of this form. P R E M i E R REALTY 0 2009 Minnesota Association of REALTORS', Edina, MN SOUTH SUBURBAN 1. Date 11/02/15 2. Page l 3. Addendum to Purchase Agreement between parties, dated 11/2/2015 4. pertaining to the purchase and sale of the property at 19930 ![snood Trail , 5. Lakeville, W 55044 6. Section 1: Lead Warning Statement 7. Every buyer of any interest in residential real property on which a residential dwelling was built prior to 1978 is notified 8. that such property may present exposure to lead from lead-based paint that may place young cthrften at risk of 9. developing lead poisoning. Lead poisoning in young children may produce permanent neurological damage, mduding 10. learning disabllitib% reduced Intelligence quotient, behavioral problems and Impaired memory. Lead poisoning also 11. poses a particular risk to pregnant women. The seller of any interest In residential real property Is required to provide 12. the buyer with any information on lead based paint hazards from risk assessments or inspections in the seller's 13. possession and notify the buyer of any known lead-based paint hazards. A risk assessment or inspection for possible 14. lead-based paint hazards is recommended prior to purchase. 15. Seller's Disclosure (initial) 16. (a) Presence of lead-based paint and/or lead-based paint hazards. 17. (Check one below.) 18. ❑ Known lead-based paint and/or lead-based paint hazards are present in the housing 19. (e lain} 20. 21. ® Seller has no knowledge of lead-based paint and/or lead-based paint hazards in the housing. 22• (b) Records and reports available to the seller. 23. (Check one below.) 24• ❑ Seller has provided Buyer with all available records and reports pertaining to lead-based paint 25• and/or lead-based paint hazards in the housing (list documents below}: 26. 27• ® Seller has no reports or records pertaining to lead-based paint and/or lead-based paint hazards 28• in the housing. 29. Buyer's Acknowledgment (initial) ?i 30. ` (c) Buyer has received copies of all information listed under (b) above. 31 • -- (d) Buyer has received the pamphlet, Protect Ybur Family from Lead in Your Home. 32. - (e) Buyer has (check one be/owr 33• ❑ Received a 10 -day opportunity (or mutually agreed-upon period) to conduct a risk assessment 34• or inspection for the presence of lead-based paint and/or lead-based paint hazards (ifchecked, 36. see Section 11 on page 2), or 36• © Waived the opportunity to conduct a risk assessment or inspection for the presence of lead - 37• based paint and/or lead-based paint hazards. TLX:SM.E-1 (8109) AWhaWslan m: 0ET7A477aFBA40184AAE4C1a0R4M" KE UM WEMMS® PREMIER RF.AI.TY SOUTH SUBURBAN ADDENDUM TO PURCHASE AGREEMENT DISCLOSURE OF INFORMATION ON LEAD-BASED PAINT AND LEAD-BASED PAINT HAZARDS 38. Page ;71 38. Property located at 19930 Kenvood Trail Lakeville, MR 55044 40. Real Estate Ucensee's Acknowledgement (Initial) 41. (f) Real estate licensee has informed Seller of Seller's obligations under 42 U.S.C. 4852(d) and is aware 42. of licensee's responsibility to ensure compliance. 43. Certification of Accuracy 44. The following parties have reviewed the information above and certify, to the best of their knowledge, that the information 45. provided by the signatory is true and accurate. 46. (Seller) (Dab) Mwo City of Lakeville, HN (Dab) 47. (fid (Date) (Buyer) (Dab) Aafheralaen C..4 11/2/2015 14- 48. (Real Etats LJoanees) carie C Waako (Date) (Real Estate Ucenwe) (Dob) 49. Section II: Contingency (initial only if first box under (e) is checked in Buyer's Aclmowfedgment above.) 50. This contract is contingent upon a risk assessment or an inspection of the property for the presence of lead - 51. based paint and/or lead-based paint hazards to be conducted at Buyer's expense. The assessment or inspection 52. shall be completed within ❑ ten (10) ❑ calendar days after Final Acceptance of the Purchase Agreemeft -Paane.) 53. This contingency shall be deemed removed, and the Purchase Agreement shall be in full force and effect, unless Buyer or 54. real estate licensee representing or assisting Buyer delivers to Seller or real estate licensee representing or assisting 55. Seller, within three (3) calendar days after the assessment or inspection is timely completed, a written list of the specific 56. deficiencies and the corrections required, together with a copy of any risk assessment or inspection report. If Seller 57. and Buyer have not agreed in writing within three (3) calendar days after delivery of the written list of required corrections 58. that: (A) some or all of the required corrections will be made; or (B) Buyer waives the deficiencies; or (C) an adjustment to 59. the purchase price will be made; this Purchase Agreement is canceled. Buyer and Seller shall immediately sign a 60. Cancellation of Purchase Agreement confirming said cancellation and directing all earnest money paid hereunder to 61. be refunded to Buyer. it Is understood that Buyer may unilaterally waive deficiencies or defects, or remove this contingency, 62. providing that Buyer or real estate licensee representing or assisting Buyer notifies Seller or real estate Bcensee 63. representing or misting Seller of the waiver or removal, in writing, within the time specified. TLX:sALE-2 (8lb9) AudmWW20I0: 0MAt77 7FB AAAE-4C1W4F5W KE-11im DISCLOSURE STATEMENT: ARBITRATION Nuumme DISCLOSURE AND RESIDENTIAL REAL PREMIER REALTY PROPERTY ARBITRATION AGREEMENT SOUTH s u a u as A N This form approved by the Minnesota Association of REALTORS°, which disclaims any ti 01y arising out of use or misuse of this form. O 2014 Minnesota Association of REALTORS°, Edina, MN 1. Pagel 2. ARBITRATION DISCLOSURE 3. You have the right to choose whether to have any disputes about disclosure of material facts affecting the use 4. or enjoyment of the property that you are buying or selling decided by binding arbitration or by a court of law. By agreeing 5. to binding arbitration, you give up your right to go to court. By signing the RESIDENTIAL REAL PROPERTY 6. ARBITRATION AGREEMENT ("ARBITRATION AGREEMENT'S on page two (2), you agree to binding arbitration underthe 7. Residential Real Property Arbitration System ('Arbitration System' administered by National Center for Dispute Settlement 8. ("NCDS") and endorsed by the Minnesota Association of REALTORSs (°MNAR').The ARBITRATION AGREEMENT Is 9. enforceable only If it Is signed by all buyers, sellers and licensees representing or assisting the buyers and the sellers. 10. The ARBITRATION AGREEMENT is not part of the Pufchase Agreement. Your Purchase Agreement will still be 11. valid whether or not you sign the ARBITRATION AGREEMENT. 12. The Arbitration System is a private dispute resolution system offered as an alternative to the court system. It 13. Is not government sponsored. NCDS and the MNAR jointly adopt the rules that govern the Arbitration System. NCDS 14. and the MNAR are not affiliated. Under the ARBITRATION AGREEMENT you must use the arbitration services of 15. NCDS. 16. All disputes about or relating to disclosure of material fads affecting the use or enjoyment of the property, excluding 17. disputes related to title Issues, are subject to arbitration under the ARBITRATION AGREEMENT. This Includes claims 18. of fraud, misrepresentation, warranty and negligence. Nothing in this Agreement limits other rights you may have under 19. MN Statute 327A (statutory new home warranties) or under private contracts for warranty coverage. An agreement to 20. arbitrate does not prevent a party from contacting the Minnesota Department of Commerce, the state agency that 21. regulates the real estate profession, about licensee compliance with state law. 22. The administrative fee for the Arbitration System varies depending on the amount of the claim, but it is more 23. than initial court filing fees. In some cases, conciliation court is cheaper than arbitration. The maximum claim allowed 24. in conciliation court is $15,000. This amount is subject to future change. In some cases, It is quicker and less expensive 25. to arbitrate disputes than to go to court, but the time to file your claim and pre -hearing discovery rights are limited. The 26. right to appeal an arbitrator's award is very limited compared to the right to appeal a court decision. 27. A request for arbitration must be filed within 24 months of the date of the dosing on the property or 28. else the claim cannot be pursued. In some cases of fraud, a court or arbitrator may extend the 24 -month 29. limitation period provided herein. 30. A party who wants to arbitrate a dispute files a Demand, along with the appropriate administrative fee, with 31. NCDS. NCDS notifies the other party, who may fie a response. NCDS works with the parties to select and appoint an arbitrator 32. to hear and decide the dispute. A three -arbitrator panel will be appointed instead of a single arbitrator at the request 33. of any party -The party requesting a panel must pay an additional fee. Arbitrators have backgrounds in law, real estate, 34. architecture, engineering, construction or other related fields. 35. Arbitration hearings are usually held at the home site. Parties are notified about the hearing at least 14 days 36. In advance. A party may be represented by a lawyer at the hearing, at the party's own expense, if he or she gives five 37. (5) days advance notice to the other party and to NCDS. Each party may present evidence, including documents or 38. testimony by witnesses. The arbitrator must make any award within 30 days from the final hearing date. The award must 39. be In writing and may provide any remedy the arbitrator considers just and equitable that Is within the scope of the 40. parties' agreement. The arbitrator does not have to make findings of factthat explain the reason for granting or denying 41. an award. The arbitrator may require the party who does not prevail to pay the administrative fee. 42. This Arbitration Disclosure provides only a general description of the Arbitration System and a general 43. overview of the Arbitration System rules. For specific Information regarding the administrative fee, please see the 44. Fee Schedule looted in the NCDS Rules. Copies of the Arbitration System rules are available from NCDS by calling 45. (866) 777-8119 or (866) 727-8119 or on the Web at www.nodsusa.org or from your REALTOR®. If you have any questions 46. about arbitration, call NCDS at (866) 777-8119 or (866) 727-8119 or consult a lawyer. MN:DSADRAA-1(8/14) ,• e Aug"sip W. *WA477.7F0A.A1 aC150F*UH KRU M DISCLOSURE STATEMENT: ARBITRATION WHIJAMSe DISCLOSURE AND RESIDENTIAL REAL P R F M t F. R REALTY PROPERTY ARBITRATION AGREEMENT SOUTH SUBURBAN 47. Page 2 48. THIS IS AN OPTIONAL, VOLUNTARY AGREEMENT. 49. READ THE ARBITRATION DISCLOSURE ON PAGE ONE (1) IN FULL BEFORE SIGNING. 50. RESIDENTIAL REAL PROPERTY ARBITRATION AGREEMENT 51. For the property located at 19930 Kenwood Trail 52. City of Lakeville , County of Dakota , State of Minnesota. 53. Any dispute between the undersigned parties, or any of them, about or relating to material facts affecting the use or 54. enjoyment of the property, excluding disputes related to title issues of the property covered by the Purchase Agreement 55. dated Nov 2 , 20 15 , Including claims of fraud, misrepresentation, warranty and 56. negligence, shall be settled by binding arbitration. National Center for Dispute Settlement shall be the arbitration service 57. provider. The rules adopted by National Center for Dispute Settlement and the Minnesota Association of REALTORS® 58. shall govern the proceeding(s). The rules that shall govern the proceeding(s) are those rules In effect at the time the 59. Demand for Arbitration Is filed and include the rules specified in the Arbitration Discbsure on page one (1). This 60. Agreement shall survive the delivery of the deed or contract for deed in the Purchase Agreement This Agreement is 61. only enforceable If all buyers, sellers and licensees representing or assisting the buyers and sellers have agreed to 62. arbitrate as acknowledged by signatures below. For purposes of this Agreement, the signature of one licensee of a 63. broker shall bind the broker and all licensees of that broker. �1 64. DECLINED (Setters Signewrs) (Date) (Buyers sigrmlure) (Date) 65. (Setbrs Pdrded Nerne) 66. (Seneft straw") (Date) 67. (SOWS Printed Name) Auftadmas C./Ff(347t�� p 68. 11/2/2018 (Licensee or Asebtlng mer) (Date) Laurie C Nacko City of Lakeville iii (Buyers Printed Name) (Buyers Signal le) (Buyers Printed Name) (Licensee Representing or Assisting Buyer) (Date) 69. Keller Williams Premier Realty (Company Name) (Company Name) 70. THE RESIDENTIAL REAL PROPERTY ARBITRATION AGREEMENT IS A LEGALLY BINDING CONTRACT 71. BETWEEN BUYERS, SELLERS AND LICENSEES. IF YOU DESIRE LEGAL ADVICE, CONSULT A LAWYER. MNSSADRAA-2 (8/14) Audmdbip%QWAa74FBA40 94AA 4CISOF4F5U4 Waiver of Seller's Disclosure Requirements for Residential Real Property and Hold Harmless Agreement ("Waiver and Hold Harmless Agreement") 1112115 Seller: Owner of record Date: Buyer. City of Lakeville, MN Property Address: 19930 Kenwood Tr, Lakeville, MN 55044 (The "Property') Buyer desires to purchase the Property from Seller, pursuant to a purchase and sale agreement (the "Agreement) th be entered into between Seller and Buyer. Effective January 1, 2003, Minnesota law requires that the Seller either provide the prospective buyer of a single-family residential real property with a written disclosure of all material facts pertaining to adverse physical condition in the Property or which the Seller Is aware of, or provide a report concerning the physical condition of the Property prepared by a qualified third party. The law also permits the Seiler and the Buyer to waive those disclosure provisions. Buyer (whether one or more) and Seller herby waive, in their entirety to the full extent permitted by law, the written disclosure provisions set forth in sections 513.52 to 513.60 of the Minnesota Statutes Annotated, pursuant to this provisions of section 513.60 of the Minnesota Statues Annotated concerning the above described Property. Buyer acknowledges that Buyer has been given an ample opportunity to seek the advice of Buyer's own chosen legal counsel concerning the Agreement, the Property and this Waiver and Hold Harmless Agreement, Not with standing anything to the contrary in the Agreement, Buyer hereby specifically holds Seller harmless from any claim or claims made by Buyer, Buyer's Successors, assigns, heirs, insurers, agents or any other person or entity, as to any matter involving the disclosure set forth in sections 513.52 to 513.60 or claims made against Seller, at any time, concerning the disclosures set forth in sections 513.52 to 513.60 of the Minnesota Statues Annotated concerning the Property made by Buyer, Buyer's successors, assigns, heirs, insurers, agents or any other person or entity. The parties herein agree that except as otherwise provided herein, the Agreement provisions shall be in full force and effect. The Waiver and Hold Harmless Agreement shall be binding and inure to the benefit of the Buyer and Seller and their heirs, successors, assigns, agents, employees and officers and shall survive the closing of the sale of the Property Pursuant to the Agreement. Well Disclosure Seller certifies that Seller does not know of any wells on the real property. If a well is discovered Buyer agrees to assume responsibility for sealing any wells that must be sealed pursuant to Minnesota Law and release Seller from any claim concerning wells. Sewer Treatment Systems Disclosure Seller has no knowledge concerning any individual sewage treatment system In use on the property. Seller does not know if there is an abandoned individual sewage treatment system on the property. If individual sewage treatment system is discovered, Buyer agrees to assume responsibility for bringing individual sewage treatment system into compliance whether in use or abandoned and releases Seller from any claim related to individual sewage treatment systems on the property. Methamphetamine Production Seiler does not know whether any methamphetamine production has occurred on the property. Predatory Offender Registry Information about the Predatory Offender Registry and persons registered with the Registry may be obtained by contacting the local law enforcement agency where the property is located or the Minnesota Department of Corrections. Radon Disclosure Seller has no knowledge concerning any radon existence on the property. The seller has not had any radon tests performed at the property and does not have a radon mitigation system currently installed on the property. If radon is discovered, Buyer agrees to assume responsibility for any mitigation or remediation and releases Seller from any claim related to radon at the property. -1- AUUMM M W. @EnA47F7FaA4o+asaneac160F4F6 a Waiver of Seller's Disclosure Requirements for Residential Real Property and Hold Harmless Agreement ("Waiver and Hold Harmless Agreement") Other If airport zoning regulations affect this property, a copy of the airport zoning regulations as adopted can be viewed or obtained at the office of the County Recorder where the zoned area Is located. ButOe�--_� Seller. l. -V Date: I/ /6® Date: Date: Date: M1 Authertesign ID: OE77A477.7F8A•401e-9AAE4C150F4F5654 Radon in Real Estate Transactions All Minnesota homes can have dangerous levels of radon gas in them. Radon Is a cotadess, odorless and tasteless IDIPARTMENtorMIALTHI radioactive one that can seep hto homes from the earth. When inhaled, its radioactive particles can damage the ceps that line the lungs. Long-term exposure to radon can lead to lung cancer. Abort 21,000 lung cancer deaths each year In the United States are caused by radon, malting it a serious health concern for all Minnesotans. It does not matter if the home Is old or new and the only way to laww I how much radon gas has entered the home Is to conduct a radon test. MOH estimates 2 in 5 homes built before 2010 and 1 in 5 homes built since 2010 exceed the 4.0 pCi& action level. . In Minnesota, buyers and sellers In a real rotate transaction are free to negotiate radon testing and reduction. Ultimately, it is up to the buyer to decide an ec eptsblo level of radon risk in the home. Prospective buyers should keep in mind that r7; Is Inexpensive and easy to measure radon, and radon levels can be lowered at a reasonable coot. The MOH Radon Program website provides more detailed Information an radon, hdud ng the MOH brochure "Keeping Your Home Safe from Radon.' The Minnesota Radon Awareness Act does not require radon testing or mitigation. However many relocation companies and lending Institutions, as well as home buyers, require a radon = when purchasing a house. The purpose of this publication is to educate and Inform potential hone buyers of the risks of radon exposure, and how to test for and reduce radon as part of real estate transactions. Disclosure Requirements Effective January 1, 2014, the Minnesota Radon Awareness Audi: requires specific disclosure end education be provided to potential home buyers during residential real estate transactions in Minnesota This publication is being provided by the seller in oder to meet a requirement of the Act. In addition, before signing a purchase agreement to sell or transfer residential real property, the seller shag disuse In writing to the buyer any knowledge the seller has of radon concentrations in the dwelling. The disclosure shell Include: 1. whether a radar test or• tests have occurred on the property; 2. the most current records and reports pertaining to radon concentrations within the dwelling; 3, a description of any radon concentrations, mitigation, or remediation; 4. infatuation regarding the radon mitigation system, including system description and documentation, if such system has been installed in the dwelling; and 5. a radon warning statement Radon Warning Statement `The Minnesota Department of Health strongly recommends that ALL hanebuyers have an indoor radon test performed prior to Purchase or taking occupancy, end recommends having the radon levels mitigated If elevated radon concentrations are found. Elevated radon concentrations can easily be reduced by a qualified, certified, or licensed, if applicable, radon mitigator. Evagr buyer of any interest In residential real property Is notified that the property may present exposure to dangerous levels of indoor. radon gas that may place the occupants at risk of developing radon. induced peg cancer, Radon, a Class A human carcinogen, Is the loading cause of lung carica In nonsmokers and the second leading cause overalL The Seger of any interest in residential real property Is required to provide the buyer with any Information an radon test results of the dwelling." Radon Facts How dangerous is radon? Radon is the number one cause of lung cancer in non-smokers and the second leading cause of bong cancer overall, next to tobacco smoking. Thankfully, much of this risk can be prevented dwwgh testing and taking action to reduce high levels of radon gas when and where they are ford, Your risk for lung cancer increases with higher levels of radon gas, prolonged exposure and whether or not you are a smoker, Where is your greatest exposure to radon? Radon Is present everywhere, and there is no known safe level. Yaw greatest exposure Is where it can cmcerdrets Indoors and where you spend most of your time. For most Minnesotans, this Is at home. Whether, a home is did or now. well�seeled or drafty, with or without a basement, any hems can have high levels of radon. urenlum and radium commonly found In needy all soils in Mmesot As a gas, radon moves (roily through the soil and eventually into the air you breathe. Our homes tend tp draw sail gases, including radon, into the structure. i have a new home, aren't radon levels reduced already? Homes built In Minnesota since June 2008 ere required to contain construction features that may limit radon entry. These features are known as passive Radon Resistant New Construction tRRNCI. Wilk these passive RRNC features may lower the amount of radon in newer homes, it does not guarantee low levels. It Is recommended all new homes be tested for radon, and if elevated levels are found, these passive RRNC features can be easily and inexpensively activated with the addition of a radon fan in the attic, If you are buying a new home, ask if the hone has any RRNC features and if the home has been tested. What is the recommended action based an my results? If the average radon In the home Is at or above 4.0 pCYL, the house should he fixed. Consider fixing the home if radon levels are between 2 pCVL and 3.9 pCVL. While it Isn't possible to reduce radon to zee, the best approach Is to reduce the radon levels to as low as reasonably achievable. Any amount of radon, even below the recommanded action levet. terries same risk. Authentisign ID: OE77A477 7FBA•401aAAAE-4C150F4F5654 Now are radon tests conducted in real estate transactions? V Because of the unique nature of reel estate transections, involving multiple parties and financial Interests, there are special protocols for radon tasting. Festest Test is campleted by a certified contractor with a calibrated CFN for a minknum of 48 hours. Test report is analyzed to ensure that it is e valid test. l�. �lljyr`� 4r her Second fastest Two sint1term test kits are used at the some time, placed 642 ruches apark for a mini- mum of 48 hours. Test lids are sent to the lab for analysis. The two test results are averaged to gat the radon bvei. SiOV00a Oce short-term test Is performed for a minimum of 48 hours. Test kit is sent to lab for analysis. Another t#ert-term kit is used in the some place as the first, started right after the first test b taken down. Test Is performed for a minimum of 48 hours. Radon Testina Douse conditions when testing Be aware that any test lasting less than three months ratlines closed -house conditions. Closed -house Conditions: Mean Imeping all windows and doors closed, except for normal entry and exit. Before Testing: Begin closed -house conditions at least 12 hours before the stmt of the radon teat. During Testing: Maintain closed -house conditions during the entire duration of the short term test. Operate hams heating or cooling systems normally during die test. Where the test shouid be conducted Any recon test conducted for a reel estate transaction (reeds to be placed In the lowest Noble area of the hone suitable for occupancy, in Minnesota, this is typically In the basement, whether It Is finished or unfinished. The test kit should be placed: • two to six (eat above the floor • at least tree fast from exterior web • four inches away i urn other objects • In a location where It •won't be disturbed • not In enclosed areas ■ not In areas of high heat or humidity Test krt Is sant to If the house has multiple foundation types. it Is the lab for analysis, recommended that each of these be tested, For 01 Instance, If the house has one or more of the following The two test foundation Wee—basement, crawl space, slob -0n - results are averaged to grade—a test should be performed In the basement get the radon lover and in at least one room ever the crawlepace and lona site. room with a sleb-on-grade ares. Who should conduct radon testing in real estate transactions? All radon teats should be conducted in accordance with national radon measurement protocols, by a certified and M01,14eted professional. This ensures the best was conducted properly, in the correct location, and under appropriate building conditions. A list of these radon measurement professionals can be found at MOH's Radon web site. A sella' may have previously conducted testing in a property. If the test result is at or shove the action level. the home should be mitigated. \1, Radon Mitigation fan •.,, Lowering radon in existing homes — Radon ilAitigation 01 When elevated levels of radon are found, they should be mitigated. Elevated radon concentrations can be easily reduced by a nationally certified and M014-11sted radon mitigation tt tt Sip S1'ap professional. A list of these radon mitigation professionals can be found at MOMs Radon web Stiction site. Radon mitigation is the process or system used to reduce radon concentrations in the ; breathing zones of occupied budldkW. The goal of a radon mitigation system Is to reduce neurite �'► rethe t' indoor radon levels to below the EPA action level of 4.0 p(i/i.. A quality radon reduction beneath �'b (mitigation) system is often able to reduce the annual average radon level to below 2.0 pCi/l Active sub -slab suction (also caged suds -ebb depressurization, or 5801 Is the most common and usually the most reliable We of system because It draws radon -filled air from beneath the 1= house and vents it outside. There are standards of practice that need to be followed or the installation of these An information found MEN ; systems. an radon mitigation can be at the Radon webelte. r sealant After a radon reduction system is installed R K,p crulm Perform an Independent short -tem test to ensure that the reduction system is effective. Make • • . sine the radon system Is operating during the entire test. Once a confirmatory radon test -� • —-�' shows low levels of radon In the home, be sure to retest the house every two years to confirm continued radon reduction. raejtin� Contact the MDR Radon Program if you are uncertain about anything MDR Radon Program regarding radon testing or mitigation. 625 Robert St N The MOH Radon Program can provide: R0.Bax 64975 St. Paul, MN 55164-0975 • Information about radon health effects• radon testing and radon mid ation; (65 201-0601 • Names of trained, certified and MOH -listed radon professionals; 1(800) 798-9050 Email; health.indocralrOstate.mn.us AudWdWp W. 0E"A4" 1$4AAE4C160F =4 Minnesota REO Co. Keller Williams Premier Realty 14800 Gala)de Ave, Ste 102 Apple Valley, MN 55124 Phone: (651) 238-4848 Fax (952) 431-5151 Email: Imadco@kw.com FINAL UTILITY AND HOA TRANSFER AGREEMENT SUBJECT PROPERTY: BUYER: DATE OF As a condition of the Closing, Buyer(s) hereby agrees to have all the utility services including water, sewer, electric, gas and Home Owners Association dues, if applicable, transferred into Buyer's name no later than the first business day following dosing. Buyer(s) also agrees to accept responsibility for payment of any utility charges accrued after the date of dosing. All or some of the utility services are in the name of the Seller or the Listing Broker. It Is the Buyer's sole and absolute responsibility to make any arrangements necessary for the transfer of utilities and associations Into their name. As a condition of closing, the listing and selling agent(s) agree to verify that this transfer agreement has taken place as agreed upon by the buyer(*). �.7 4 J Buyer (signature)D to Buyer (print) ate Buyer (signature) Date Current Address: Phone: Email: Selling Agent Date Buyer (print) Date THIS AGREEMENT SHALL SURVIVE CLOSING AudwdWp W. 0E"A477?RBA-M94AAE4C1SOF4F5M W. KEUR WHUAMS® PRP.MIRR REALTY SOUTH SUBURBAN AMENDMENT TO PURCHASE AGREEMENT This form approved by the Minnesota AesodadOn of REALTORS°, which disclaims any liability arising out of use or misuse of this form. 0 2006 Minnesota Association of REALTORS*. Edina. MN 1. Date 11/02/15 2. The undersigned parties to a Purchase Agreement, dated 11/02/15 pertaining to 3. the purchase and sale of the property at 19930 Kenwood Tr 4. Lakeville, W 55044 5. hereby mutually agree to amend said Purchase Agreement as follows: 6. Seller is: THE HANK OF NEW YORK MELLON FKA THE BANK OF NEW YORK, AS TRUSTEE FOR THE CERTIFICATEHOLDERS CNALT, INC., ALTERNATIVE LOAN TRUST 7' 2006-26CB, MORTGAGE PASS-THROUGH CERTIFICATES,SERIES 2006-26CB 8. N' 20. 21. 22. 23. 24. 25. 26. 27. 28. 29. 30. All other terms and conditions of the Purchase Agreement to remain the same. 31. 1UZ I (840 (Date) (Bu ed / 32. (Sd@O (Date) (Soyer) (Date) 33. THIS IS A LEGALLY BINDING CONTRACT BETWEEN BUYERS AND SELLERS. 34. IFYOU DESIRE LEGAL OR TAX ADVICE, CONSULT AN APPROPRIATE PROFESSIONAL. MN AMD (6106) ADDENDUM TO PURCHASE AGREEMENT This form approved by the Minnesota Association of REALTORSe, which disclaims any liability arising out of use or misuse of this form. ® 2011 Minnesota Association of REALTORSe, Edina, MN 1. Date 11/24/15 2. Page 3. Addendum to Purchase Agreement between parties, dated November 2nd 20 15 , pertaining to the 4. purchase and sale of the property at 19930 Kenwood Trail 5. Lakeville 6. In the event of a conflict between this Addendum and any other provision of the Purchase Agreement, the language 7. in this Addendum shall govem. This Purchase Agreement is subject to the City of Lakeville's council 8' approval at the regularly scheduled meeting on December 7th,2015, and 9. Dakota County's approval at their scheduled meeting on December 15, 10 2015. 11. 12. 13. 14. 15. 16. 17. 18. 19. 20. 21. 22. 23. 24. 25. 26. 27. 28. 29. 30. 31. (setwo (Date) (Buyer) City of Lakeville, Justin Miller (Date) 32. (seller) (Date) (BUYO (Date) 33. THIS IS A LEGALLY BINDING CONTRACT BETWEEN BUYERS AND SELLERS. 34. IF YOU DESIRE LEGAL OR TAX ADVICE, CONSULT AN APPROPRIATE PROFESSIONAL. MN -APA (8111) Shellpoint Mortgage Servicing SHELLPOINT MORTGAGE SERVICING Attn: REO Department 55 Beattie Place, Suite 110 Greenville NC 29601 CONTRACT SALES ADDENDUM REO ##: 520598829 This Addendum is to be made part of, and incorporated into, the Real Estate Purchase Contract dated 11/2 2015 the"Contract"),between see attached ("Seller") and City of Lakeville. MN ("Purchaser")for the property and improvements located at the following address: 19930 Kenwood Tr, Lakeville, MN SSO44 ("Property") IN THE EVENT ANY PROVISIONS OF THIS ADDENDUM CONFLICT IN WHOLE OR IN PART WITH THE TERMS OF THE CONTRACT OF SALE OR ANY PRIOR ADDENDUM OR AMENDMENT THERETO (COLLECTIVELY, THE "CONTRACT"), THE PROVISIONS OF THIS ADDENDUM SHALL CONTROL. 1. Title to the property shall be conveyed by either Special Warranty Deed or Quit Claim Deed, or equivalent documents accepted where the Property is located. It is the intent of the Seller to deliver insurable title to the subject property through the conveyance of the Special Warranty Deed or comparable instrument. The comparable instrument, at a minimum, must contain the following language: "Grantor covenants that it is seized and possessed of the said land and has a right to convey it, and warrants the title against the lawful claims of all persons claiming by, through and under it, but not further otherwise". 2. Notwithstanding anything in the attached contract (hereinafter, the "Contract") to the contrary, the Special Warranty Deed to be delivered by the Seller at closing shall include the following "subject to" provisions: The following reservations from and exceptions to this conveyance and the warranty of title made herein shall apply. a) All easements, rights-of-way and prescriptive rights whether of record or not, pertaining to any portion(s) of the herein described property (hereinafter, the "Property"); b) All valid oil, gas and mineral rights, interests or leases, royalty reservations, mineral interest and transfers of interest of any character, in the oil, gas or minerals of record in any county in which any portion of the Property is located; c) All restrictive covenants, terms, conditions, contracts, provisions, zoning ordinances and other items of record in any county in which any portion of the Property is located, pertaining to any portion(s) of the Property, but only to the extent that same are still in effect; d) All presently recorded instruments (other than liens and conveyances by, through or under the Grantor) that affect the Property and any portion(s) thereof, e) Ad valorem taxes, fees and assessments, if any, for the current year and all prior and subsequent years, the payment of which Grantee assumes (at the time of transfer of title), and all subsequent assessments for this and all prior years due to change(s) in land usage (including, but not limited to, the presence or absence of improvements, if any, on the Properly), ownership, or both, the payment of which Grantee assumes; and f) Any conditions that would be revealed by a physical inspection and survey of the Property. ® Buyer's Initials�i" Page 1 of 6 Seller's Initials CONTRACT SALES ADDENDUM, page 2 REO#:520598829 3. Seller shall select the title and closing agent. The Seller shall pay the title examination fee, the premium, and any other charges and fees for the owner's title insurance policy. Because Seller agrees to pay the premium and any other charges and fees for the owner's title insurance policy, Seller shall have the right to select the title company that shall issue the owner's title policy. Buyer shall pay their customary closing fee to the closing/title agent. If Buyer obtains a mortgage loan in connection with this purchase, the Buyer will pay any premium of a mortgagee title policy. With respect to the purchase of any mortgagee title policy, Buyer specifically acknowledges: a) This Agreement in no way limits Buyer's right to obtain a mortgagee's title policy from any title company of Buyer's choosing; b) Buyer understands Seller is obtaining an owner's title policy and Buyer may, at his own option, incur less expense by obtaining a mortgagee title policy from the same title company; c) Any costs savings or other benefit that may accrue to Buyer as a result of Buyer's purchase of a mortgagee's title policy from the same title company selected by Seller to issue the owner's title insurance policy in no way abrogates Buyer's right to obtain mortgagee's title insurance from any title company of Buyer's choosing; d) Buyer has not been penalized or rewarded by Seller for Buyer's decision to purchase a mortgagee's title policy from any title company of Buyer's choosing; e) Seller has not in any manner directly or indirectly required Buyer, as a condition of sale to purchase a mortgagee title policy from any particular title company. The Buyer is entitled to legal representation at the closing and may elect to have such representation at the Buyer's expense. All closing transactions will be held at the Title/Closing Agent selected by the Seller. It is Sellers intent to deliver owner's title insurance policy in lieu of an abstract in the customary abstract states. The Buyer hereby accepts title insurance in lieu of an abstract if applicable. In the event there is a requirement for the abstract to be updated, the associated expense will be a Buyer expense on the HUD 1 Settlement Statement. As required by the Real Estate Settlement Procedures Act of 1974, Buyer acknowledges that Seller has not directly or indirectly required Buyer, as a condition of sale, to purchase a mortgagee title insurance policy from any particular title company. Buyer may elect to obtain such insurance from a company of Buyer's choice and Buyer shall pay, at closing, the title insurance premium for such policy. Buyer further acknowledges that Buyer's election to obtain such insurance from a company of Buyer's choice has not been limited in any manner regardless of any discount or other cost savings that may accrue to Buyer by purchasing a mortgagee title policy from the same title company that issued the owner's title policy. 4. The undersigned Buyer and Seller hereby: a) Authorize and direct any title company or closing agent providing services in connection with this transaction (the"Closing Agent") to furnish a copy of any HUD -1 Settlement Statement generated in connection with the closing of this transaction, whether unsigned or signed by the parties, showing both the Buyer's and Seller's sides of the transaction to the closing representative for the Seller; b) Agree that the Closing Agent shall have no liability under the Gramm -Leach -Bliley Act, any other statute or regulation relating to privacy or information disclosure or otherwise as a result of its compliance with the direction to release aforementioned HUD -1 Settlement Statements to the closing representative for the seller; and c) Agree that the closing representative for the seller may furnish such HUD -1 Settlement Statements to any authorized agent of the Seller. ® Buyer's Initials CSV " Page 2 of 6 5. Corporate Disclosures: Seller's Initials CONTRACT SALES ADDENDUM, page 3 REO#: 520598829 a) Seller acquired the Property either as a result of a foreclosure action, result of like or similar action, i.e. deed in lieu or as part of a purchase from a prior servicer and that the total price set forth in the contract may reflect deferred maintenance. Accordingly, Seller has not conducted their own inspections or has any personal knowledge of the condition of the property other than as may be disclosed in the Inspection Report (as hereinafter defined), if any, that has been prepared for the Property. Purchaser acknowledges that there has been no representation(s) by Seller, or any other person acting as Seller's representative and/or Purchaser's representative regarding the condition of the Property, any of the appliances or structural components that may be contained therein, its fitness for general or specific use, or any other matter affecting the Property. If an inspection report has been obtained by or on behalf of Seller or Seller's representative (the "Inspection Report"), such Inspection Report may be provided to Purchaser for Purchaser's information only and shall not be deemed a part of the- Contract of Sale. If the Inspection Report has been provided to Purchaser, no representation or warranty is made as to the accuracy and completeness of such report. b) Neither Seller nor any person acting as Seller's representative has occupied the Property and neither warrants or represents that the Property or any alterations or additions which may have been made to the Property conform to local building codes, zoning requirements or any other applicable laws, rules or regulations. c) Purchaser acknowledges that Purchaser has the opportunity to inspect, examine and make a complete review of the Property prior to the close of escrow of the Contract. Purchaser will rely solely on Purchaser's inspection and review to evaluate the condition of the Property. d) Purchaser hereby acknowledges that Seller shall not be providing Purchaser with a Real Estate Transfer Disclosure Statement and/or a Certificate of Occupancy with respect to the Property. Purchaser hereby waives any requirement that Seller furnish Purchaser with any such disclosure statement and/or a Certificate of Occupancy and hereby releases Seller from any and all liability resulting from the non-delivery of such disclosure statement and /or a Certificate of Occupancy. e) Purchaser acknowledges that it is Purchaser's sole responsibility to obtain inspection reports by qualified professionals on the appliances, structural components, and alterations or additions to the Property and to determine the presence of any toxic or hazardous substances on the Property, including, but not limited to, mold, radon, asbestos and lead paint, that would make it uninhabitable or dangerous to the health of the occupants or otherwise not in compliance with law, or any other factors regarding the condition of the Property about which Purchaser may be concerned. i) PURCHASER UNDERSTANDS, ACKNOWLEDGES, AND AGREES THAT NEITHER SELLER NOR ANY PERSON ACTING AS SELLER'S REPRESENTATIVE IS MAKING ANY WARRANTIES OR REPRESENTATIONS, EITHER EXPRESS OR IMPLIED, AS TO THE CONDITION OF THE PROPERTY. THE PROPERTY IS BEING CONVEYED TO PURCHASERS IN ITS "AS IS, WHERE IS" CONDITION. IT IS THE RIGHT AND RESPONSIBILITY OF THE PURCHASER TO INSPECT THE PROPERTY AND PURCHASER MUST SATISFY HIMSELF/HERSELF AS TO THE CONDITION OF THE PROPERTY. ® Buyer's Initials�I - Seller's Initials Page 3 of 6 g) Mold, mildew spores and/or other microscopic organisms and/or allergens (collectively referred to in this Agreement as "Mold") are environmental conditions that are common in residential CONTRACT SALES ADDENDUM, page 4 REO#: 520598829 properties and may affect the Property. Mold, in some forms, has been reported to be toxic and to cause serious physical injuries, including but not limited to, allergic and/or respiratory reactions or other problems, particularly in persons with immune system problems, young children and/or elderly persons. Mold has also been reported to cause extensive damage to personal and real property. Mold may have been removed or covered in the course of any cleaning or repairing of the Property. h) The Purchaser acknowledges that, if Seller, or any of Seller's employees, contractors, or agents cleaned or repaired the Property or remediated Mold contamination, that Seller does not in any way warrant the cleaning, repairs or remediation. Purchaser accepts full responsibility for all hazards that may result from the presence of Mold in or around the Property. The Purchaser is satisfied with the condition of the Property notwithstanding the past or present existence of Mold in or around the Property and Purchaser has not in any way, relied upon any representations of Seller, Seller's employees, officers, directors, contractors, or agents concerning the past or present existence of Mold in or around the property. 6. In states where applicable, Purchaser acknowledges that time is of the essence regarding the closing of this Contract. Should Purchaser, through no fault of Seller, fail to close upon the Property on or before the closing date stated in the Contract for any reason whatsoever, the Seller can agree to extend the Contract. Seller may assess a penalty of a daily per diem for each day beyond said closing date for which the Purchaser requests and Seller agrees or, demand escrow proceeds be non-refundable to Purchaser. Either penalty will be determined by the seller on a case by case basis. Any monies so paid must be paid no later than the original closing date and shall be paid to Seller as non-refundable earnest money. These monies shall be paid in addition to the purchase price and may not be credited in any way to the original amounts due to Seller. 7. This Section 7 shall be in effect and incorporated into the Contract only when initialed by both Purchaser and Seller: Purchaser's Initials: ( ) / ( ) Seller's Initials: ( ) / ( If the Contract of Sale is "Subject to Financing", then Purchaser may obtain financing from the lender of purchaser's choice. However, within seventy-two (72) hours of the execution of the Contract of Sale, Purchaser agrees to provide evidence to Seller that a lender has pre -approved Purchaser for financing. Purchaser shall pay for and instruct the lender to which such mortgage application is made to order an appraisal immediately upon submission by Purchaser of an application for a mortgage loan. Proof of lender's Final unconditional commitment to lend must be provided to Seller within 21 days of execution of this Addendum to Contract of Sale. 8. Buyer(s) is purchasing the Property in its current "As Is" condition subject only to such repairs as may be expressly required under the Contract or agreed to in writing by Seller and Buyer(s) prior to closing. Should any lender or any insuring equity or agency require that certain repairs to the Property be made or that certain other conditions be met, the Seller, at its sole option, may comply with such requirement or terminate the Contract. Furthermore, should any FHA Conditional Commitment or VA Certificate of Reasonable Value vary from the agreed upon purchase price of the Property, then Seller, at its sole option, may terminate the Contract. Notwithstanding that repairs may be made to the Property pursuant to the terms of this Contract and prior to closing, Buyer(s) acknowledges that Seller has not made and shall not make any representations or warranties of any character as to the necessity for any such repairs, or the ® Buyer's Initials Yll� Seller's Initials Page 4 of 6 CONTRACT SALES ADDENDUM, page 5 REO#: 520598829 absence of any necessity therefore, or of the adequacy of any such repairs upon completion thereof. Buyer(s) agrees that it shall be solely the responsibility of Buyer(s) to inspect and verify, prior to closing, the completion and adequacy of any and all such repair. 9. Purchaser agrees to indemnify Seller and Seller's representatives and fully protect, defend and hold Seller and Seller's representatives harmless from and against any and all claims, liens, losses, damages, liabilities, costs, injuries, attorney's fees and expenses of every kind and nature that may be made against Seller or the Property for any liens on the Property, any damage to the Property or any injury to Purchaser or other persons that may arise from repairs, replacements or treatments made by or for the benefit of Purchaser prior to closing, and any failure of Purchaser to comply with the provisions of paragraph 13 hereof. 10. If a Survey is requested by Buyer(s) or Lender, Buyer agrees to pay for said survey. A survey is not a condition of this transaction. 11. Taxes: a) Sellers Right to Constest Taxes: Seller shall have the unrestricted right to contest the amount of or obligation to pay any ad valorem real or personal property taxes, real or personal property assessments, or assessments or dues of any condominium, planned unit development or similar community or other homeowners' association, (collectively, "Taxes") for any calendar year, fiscal year, or other accounting period for which Taxes are assessed or levied (a "Tax Period") that includes the date of the close of escrow on the Property (the "Closing Tax Period") or that precedes the date of the close of escrow on the Property (the "Closing"). Seller may contest Taxes by any judicial, administrative, or other process that Seller chooses. If requested by Seller, Purchaser shall join in any proceeding to contest Taxes to the extent necessary to permit Seller to exercise its rights under this Agreement. Seller shall have no duty to contest Taxes, and may dismiss, settle, or otherwise resolve any matter relating to contested Taxes on whatever terms Seller chooses. b) Entitlement to Refund: Any refund of contested Taxes for the Closing Tax Period or any prior Tax Period shall be paid to Seller, and Purchaser hereby irrevocably assigns to Seller any right, title, or interest it may have in any refund of contested Taxes for all such Tax Periods. If requested by Seller, Purchaser shall execute whatever endorsements or other documents may be necessary to accomplish the refund of such contested Taxes to Seller. Notwithstanding anything to the contrary in this Section 7.B., however, Seller shall not be entitled to any refund of Taxes that are attributable solely to any change in land usage or ownership of the Property occurring at or after Closing, all of which shall be paid by Purchaser. c) ADJUSTMENTS FOR CLOSING TAX PERIOD: If a contest of Taxes by Seller is concluded before Closing, the proration of the contested Taxes as provided in Section 7.13. above shall be accomplished by taking into account any change in valuation of the Property or the amount of contested Taxes for the Closing Tax Period. If a contest of Taxes by Seller is concluded after Closing, then notwithstanding the provisions of Section 7.B. above, an appropriate adjustment payment shall be made by Purchaser or Seller to the other so that taking into account the adjustment payment, each will have paid (or been debited for) the revised amount of Taxes for the Closing Tax Period that results from Seller's contest in the proportion that the number of days in the Closing Tax Period before or after the close of escrow, as the case may be, bears to the total number of days in the Closing Tax Period. Notwithstanding anything to the contrary in this Section 7.C., however, no adjustment payment shall be made with respect to Taxes for the Closing Tax Period that are attributable solely to any change in land usage or ownership of the Property occurring at or after the close of escrow, all of which shall be paid by Purchaser. ® Buyer's Initials, Page 5 of 6 Seller's Initials CONTRACT SALES ADDENDUM, page 6 REO#: 520598829 d) CONTEST COSTS: Purchaser shall pay a share of Seller's out-of-pocket costs (including legal fees and costs) of contesting Taxes for the Closing Tax Period in the proportion that the number of days in the Closing Tax Period after the close of escrow bears to the total number of days in the Closing Tax Period. If Seller's out-of-pocket costs of contesting Taxes for the Closing Tax Period exceed the amount of any reduction in contested Taxes for the Closing Tax Period, Purchaser shall not be obligated to pay any share of the excess. If as part of the same proceeding Seller has also contested Taxes for Tax Periods before the Closing Tax Period, Seller's out-of- pocket costs shall be allocated to the Closing Tax Period in the proportion that the amount of the reduction in contested Taxes for the Closing Tax Period bears to the aggregate amount of all reductions in contested Taxes resulting from the proceeding. Except as otherwise provided in this Section 7.D., any contest of Taxes by Seller shall be at Seller's sole cost and expense. e) PAYMENT PROCEDURE: The amount of any adjustment payment pursuant to Section 7.C. and the amount of any cost-sharing payment pursuant to Section 7.D. shall be combined to determine a net settlement amount owed by Seller or Purchaser to the other. If the net settlement amount is owed to Seller, that amount shall be due and payable not later than thirty (30) days after Seller notifies Purchaser in writing of the amount due. If the net settlement amount is owed to Purchaser, that amount shall be due and payable not later than thirty (30) days after Seller's receipt of any contested Taxes to be refunded to Seller or the conclusion of the contest of Taxes by Seller, whichever is later. Any notice or payment from Seller to Purchaser shall include a statement reflecting in reasonable detail how the net settlement amount was calculated and shall include copies of bills, invoices, or other reasonable documentation of any out-of-pocket expenses of Seller for which Purchaser is to pay a share. 12. The Purchaser shall not assign its rights under any part of the Contract without Seller's prior written consent. 13. Purchaser is responsible for the installation of new locks on the Property, immediately after the closing, and purchaser shall hold Seller and Seller's representatives harmless from and indemnify Seller and Seller's representatives against any and all damages, claims, liens, losses, liabilities, costs, injuries, attorneys fees and expenses of every kind and nature that may be made against Seller as a result of Purchaser's failure to install new locks on the Property. 14. The final acceptance of the Contract and the effectiveness thereof is subject to committee approval, which will be provided when Seller's signature is affixed hereon and a fully executed counterpart of the Contract has been delivered to Purchaser. 15 . If for any reason, Seller is unable to deliver insurable title to Purchaser or is unable to cure any defects of title at the close of escrow and the close of escrow is not extended as set forth elsewhere, then Purchaser's SOLE AND EXCLUSIVE REMEDY shall be to receive a return of Purchaser's deposit and elect to terminate this Contract of Sale 16. Personal Property. Seller is not hereby conveying any personal property other than as provided in the Contract of Sale and makes no representations or warranties regarding same. Any items of personal property remaining after the sale of the property are deemed to add no value to the transaction and are not a part of the actual transaction, and are given to Purchaser in AS IS condition with no seller representation or warranty regarding condition or ownership. No bill of sale will be provided for such items. 17. It is agreed by buyer and Seller that if unforseen judgments, liens or assessments result in negative sales proceeds to the Seller, the Seller reserves the right to cancel the contract and return any deposit monies to the buyer. ® Buyer's Initials SJ " - Seller's Initials Page 6 of 6 CONTRACT SALES ADDENDUM, page 7 REO#: 520598829 18. Other Provisions: ® Buyer's Signature: ® Print Name: J U ® Date: 3� Buyer's Signature: Date: 5 ® Buyer's Initials � Page 6 of 6 Seller's Signature: Print Name: Title: Seller's Initials