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<br />10, SPECIAL PROVISIONS:
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<br />a) Buyer, City of Ia Porte, shall have the right to cancel this contract,
<br />without cause, anyt.i.rre prior October 1, 1988, and receive the refund
<br />of its earnest roney deposit.
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<br />b) Buyer buys the property,. where is, as is, and Seller makes no warranty
<br />as to the condition of the improvenents on the property.
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<br />(Insert factual statements and business de,ails applicable to this sale,)
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<br />11. SALES EXPENSES TO BE PAID IN CASH AT OR PRIOR TO CLOSING:
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<br />A. SELLER'S EXPENSES: All costs of releasing existing loans and recording the releases; Owner's Title POIiCYi survey; tax statementsi 1/2 of
<br />any escrow fee; preparation of Deed; other expenses stipul:lted to be paid by Seller under other provisions of this Contract.
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<br />B, BUYER'S EXPENSES: All expenses incident to any loan (c,g., loan procurement fees, preparation of Note, Deed of Trust, and other loan
<br />documents, recording fees, Mortgagee's Title Policy, prepayable interest, credit reports)j 1/2 of any escrow feei copies of restrictions, easements,
<br />reservations, or conditions affecting the Property; and cxpcnses stipulated to be paid by Buyer under other provisions of this Contract.
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<br />12, PRORATIONS: Insurance (at buyers option), interest on any debt assumed or taken subject to, assessments, current taxes, and any rents, and
<br />maintenance fees shall be prorated at the date of closinR, No proration shall be made for delinquent rents existing as of Closing Date, which
<br />rents Seller shall be responsible for collecting, At the closing, Seller shall pay to Buyer in cash the amount of any prepaid rents paid to Seller
<br />by tenants o~the Property for periods subsequent to the Closing Date. If ad valorem taxes for the year in which the sale is closed are not available
<br />on the Closing Date, proration of taxes shall be made on the basis of taxes assessed in the previous year, with a subsequent cash adjustment of
<br />such prorcltion to be made between Seller and Buyer, if necessary, when actual tax figures are available. If Buyer is assuming payment of or taking
<br />subject to any existing loan on the Property, all reserve deposits for the payment of taxes, insurance premiums, or other charges shall be transferred
<br />to Buyer by Seller and Buyer shall pay to Seller the amount of such reserve deposits. Any special assessments applicable to the Property for improvements
<br />previously made to benefit the Property shall be paid by Seller. Seller shall p~y to Buyer at closing in cash the amount of any deposits paid to
<br />Seller by tenants of the Property, including but not limited to, all rental security, cleaning, utility, key, damage, and other deposits. All other
<br />income and ordinary operating expenses of the' Property, including but not limited to, public utility charges, maintenance, management, and other
<br />n,)nnal operatinR charRcs shall be p~rated as of the date of closing.
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<br />,', TITLE APPROVAL: Seller shall deliver to Buyer within twenty (20) days from the date of this Contract a Commitment for Title Insurance (the
<br />"Commitment") and, at Buyer's request, legible wpies of all recorded instruments affecting the Propelty and recited as exceptions in the Commit-
<br />ment. If Buyer has an objection to items disclosed in such Commitment or survey provided for herein, Buyer shall have fourteen (14) days after
<br />receipt of each such instrument to make written objections to Seller. If Buyer or third party lender makes such objections or if the objections
<br />arc disclosed in Commitment, survey or by the issuer of the Title Policy, Seller shall have thirty (30) days from the date such objections are disclosed
<br />to cure the same, and the Closing Date shall he extended, if necessary, Seller agrees to utilize irs best efforts and reasonable diligence to cure
<br />such (.bjection, if any. If the objections are not satisfied within such time period, Buyer may (i) terminate this Contract and the Earnest Money
<br />shall be refunded to Buyer, and neither party shall have any further rights or obligations pursuant to this Contract, or (ii) waive the unsatisfied
<br />objections and close the transaction,
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<br />14, DEFAULT: Unless otherwise provided f,u herein, if Buyer fails to comply herewith, Seller may either (i) enforce specific perfonnance and s\.ek
<br />such other relief as may be provided b~' law, or (ii) terminate this Contract and receive the Earnest Money as liquidated damages, one-half of
<br />which (but not exceeding the herein recited Broker's fee) shall be paid by Seller to Broker in full payment of Broker's services. The Broker's fee
<br />is payable only if and when Seller enforces specific performances, collecrs damages for such default by suit, compromise, settlement, or receives
<br />the Earnest Money as liquidated damaRes, Unless otherwise provided for herein, if Seller fails to comply herewith, Buyer may either (i) enforce
<br />specific performance hereof and seek such other relief as may be provided by law, or (ii) terminate this Contract and receive the Earnest Money.
<br />Notwithstandinl: the above, accrued interest, if any, on the Earnest Money shall be paid to Buyer.
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<br />IS. AlTORNEY'S FEES: Any sil:natory [0 this Contract who is the prevailing party in any legal proceeding against any other signatory hrought under
<br />or with relation to the Contract or transaction shall be additionally entitled to recover court costs and reasonable attorney's fees frolD the
<br />non-prevailing party,
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<br />16, ESCROW: The Earnest Money is deposited with Escrow Agent with the understanding that Escrow Agent (i) is not a party to this Contract
<br />and does not assume or have any liability for performance or non-performance of any party and (ii) has the right to require from all signatories
<br />a written release (If liability of the Escrow Agent, termination of the Contract and authorization to disburse the Earnest Money. At closing, Earnest
<br />Money and accrued interest shall be applied to any cash down payment required, next to Buyer's closing costs and any excess I't'funded to Buyer,
<br />Any refund or payment of the Earnest Money under this Contract shall be reduced by the amount of any actual expenses Il.curred on b.h.,!f
<br />of the party receiving the Earnest Money, and the Escrow Agent will pay the same to the creditors entitled thereto,
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<br />17. REPRESENTATIONS AND WARRANTIES OF SELLER: Seller hereby represents and warrants to Buyer as follows, which representations and
<br />\\'3rranties shall he deemed made by Seller to Buyer also as of closing date and such representations and warranties shall survive the closill.!:
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<br />A. There are no parties in possession of any portion of the Property as lessees, tenants at sufferance, or tresspassers except tenants under the
<br />written leases delivered [0 Buyer pursuant to the Contractj -
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<br />B. There is no pending or threatened condemnation or similar proceeding or assessment affecting the Property, or any part thereof, nor to the
<br />best knowledllc and belief of Seller is any such proceeding or assessment contemplated by any governmental authority;
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<br />C. Seller is the fee simple owner of the title to the Property and is duly authorized and empowered to sell said Property;
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<br />D. Seller has paid, through the current year, all taxes, charges, debts, and other assessments due by the Seller with respect to the Property;
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<br />E. The Property is not in a flood plain or water district, except as follows:
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<br />F. All Immb) a~sumed or taken subject to are not presently in default and will not be in default at the time of closing;
<br />G. There will he no unn:cl)n.Ied liens or Uniform Commercial Code liens against any (If the PIOperry which will not be satisfied oUt of the Sale!' "ricei
<br />H. Seller knllw, of nil exi,ring condition wirh respect rCl rhe Property or its operation which violates any government code or regulation;
<br />I. Seller h.t, 1101 kllllwl.,.Jge Ih,ll rhe Ptllpcrt~' i~ sul-ject [0 any surface or sub-surface gnl'lIl.l faults;
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