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HomeMy WebLinkAboutO-2004-2715 REQUEST FOR CITY COUNCIL AGENDA ITEM Agenda Date Requested: Appropriation Requested By: Source of Funds: N/A Department: Planning Account Number: N/A Report: Resolution: Ordinance: x Amount Budgeted: N/A Exhibits: Ordinance Amount Requested: N/A Exhibits: Sales Contract Budgeted Item: YES NO Exhibits SUMMARY & RECOMMENDATION The City is participating in the HOME Program through Harris County in what has been referred to as the Northside Grant. The City was to construct two "model" homes to sell to qualified individuals. Nine other homes were to be constructed with the City assisting with down payments in the amounts of about $22,000 per applicant. The builder, Bayou Housing, would deal direct with the applicants on those nine. The City is about to close on the first two "model" homes. City Council is requested to authorize 1) the sale of the two homes; and 2) the City Manager as the City's representative to execute the closing documents. Both are identical except for the locations and selling price. This item is for the 1,988 sq. ft. home at 330 North 5th Street priced at $90,500. Action Required bv Council: Consider approval of an ordinance authorizing the sale of the home located at 330 N. 5th Street as part of the City's HOME Grant, and authorizing the City Manager as the City's representative to execute the closing documents. Approved for City Council Ae:enda De~~~ p~u~j~ -1--0 ~cX( Date ORDINANCE NO. 2004- 6L 7/:;' AN ORDINANCE APPROVING AND AUTHORIZING A CONTRACT BETWEEN THE CITY OF LA PORTE (SELLER) AND ANNA MARIA LAKE (BUYER) FOR THE SALE OF A MODEL HOME LOCATED AT 330 N. 5TH STREET, ALSO DESCRIBED AS LOTS 1 & 2 OF BLOCK 80, LA PORTE, TX 77571, AS PART OF THE HOME INVESTMENT PARTNERSHIP (HOME) PROGRAM FOR THE CITY OF LA PORTE, TEXAS; MAKING VARIOUS FINDINGS AND PROVISIONS RELATING TO THE SUBJECT; FINDING COMPLIANCE WITH THE OPEN MEETINGS LAW; PROVIDING AN EFFECTIVE DATE HEREOF. BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF LA PORTE: Section 1. The City Council hereby approves and authorizes the contract, agreement, or other undertaking described in the title of this ordinance, in substantially the form as shown in the document which is attached hereto and incorporated herein by this reference. The City Manager is hereby authorized to execute such document and all related documents on behalf of the City of La Porte. The City Secretary is hereby authorized to attest to all such signatures and to affix the seal of the City to all such documents. Section 2. The City Council officially finds, determines, recites, and declares that a sufficient written notice of the date, hour, place and subject of this meeting of the City Council was posted at a place convenient to the public at the City Hall of the City for the time required by law preceding this meeting, as required by the Open Meetings Law, Chapter 551, Texas Government Code; and that this meeting has been open to the public as required by law at all times during which this ordinance and the subject matter thereof has been discussed, considered and formally acted upon. The City Council further ratifies, approves and confirms such written notice and the contents and posting thereof. Section 3. This Ordinance shall be effective from and after its passage and approval, and it is so ordered. ORDINANCE NO. 2004- 27/:) PAGE 2 PASSED AND APPROVED, this /lLcULdayof /lprr I ,2004. CITY OF LA PORTE ~~ Peter Griffith~ Mayor Pro T em ATTEST: ~MJl{/ \ ~t4) '4Ji Martha A. Gillett City Secretary Q PROMULGATED BY THE TEXAS REAL ESTATE COMMISSION (TREe) ONE TO FOUR FAMILY RESIDENTIAL CONTRACT (RESALE) NOTICE: Not For Use For Condominium Transactions 01-06-03 EQUAL HOUSING OPPOIlTUNITY 1. PARTIES: CITY OF LA PORTE , TEXAS sell and convey to ~1\lN~ M~RT~ T,~KF.. rl c:; ngl p ',7nmrln Buyer agrees to buy from Seller the Property described below. 2. PROPERTY: A. LAND: Lot 1 and 2, inclusive ,Block~, Addition, City of La Porte , Harris County, Texas, known as 330 N. 5th Street , La Porte , Texas 77571 (address/zip code), or as described on attached exhibit. B. IMPROVEMENTS: The house, garage and all other fixtures and improvements attached to the above-described real property, including without limitation, the following permanently installed and built-in items, if any: all equipment and appliances, valances, screens, shutters, awnings, wall-to-wall carpeting, mirrors, ceiling fans, attic fans, mail boxes, television antennas and satellite dish system and equipment, heating and air-conditioning units, security and fire detection equipment, wiring, plumbing and lighting' fixtures, chandeliers, water softener system, kitchen equipment, garage door openers, cleaning equipment, shrubbery, landscaping, outdoor cooking equipment, and all other property owned by Seller and attached to the above described real property. C. ACCESSORIES: The following described related accessories, if any: window air conditioning units, stove, fireplace screens, curtains and rods, blinds, window shades, draperies and rods, controls for satellite dish system, controls for garage door openers, entry gate controls, door keys, mailbox keys, above ground pool, swimming pool equipment and maintenance accessories, and artificial fireplace logs. D. EXCLUSIONS: The following improvements and accessories will be retained by Seller and excluded: (Seller) agrees to (Buyer) and The land, improvements and accessories are collectively referred to as the "Property". 3. SALES PRICE: A. Cash portion of Sales Price payable by Buyer at closing.................. $ B. Sum of all financing described below (excluding any loan funding fee or mortgage insurance premium) .......................................... $ C. Sales Price (Sum of A and B) ..................................................... $ 500.00 90,'000.00 90,son nn 4. FINANCING: The portion of Sales Price not payable in cash will be paid as follows: (Check applicable boxes below) a A. THIRD PARTY FINANCING: One or more third party mortgage loans in the total amount of $ 90.000.00 . If the Property does not satisfy the lenders' underwriting requirements for the loan(s), this contract will terminate and the earnest money will be Jefunded to Buyer. (Check one box only) ~(1) This contract is subject to Buyer being approved for the financing described in the attached Third Party Financing Condition Addendum. 0(2) This contract is not subject to Buyer being approved for financing and does not involve FHA or VA financing. . o B. ASSUMPTION: The assumption of the unpaid principal balance of one or more promissory notes described in the attached TREC Loan Assumption Addendum. o C. SELLER FINANCING: A promissory note from Buyer to Seller of $ , bearing % interest per annum, secured by vendor's and deed of trust liens, and containing the terms and conditions described in the attached TREC Seller Financing Addendum. If an owner policy of title insurance is furnished, Buyer shall furnish Seller with a mortgagee policy of title insurance. 5. EARNEST MONEY: Upon execution of this contract by both parties, Buyer shall deposit $ '100 00 as earnest money with Fidelity Title Co. , as escrow agent, at (address). Buyer shall deposit additional earnest money of $ with escrow agent within days after the effective date of this contract. If Buyer fails to deposit the earnest money as required by this contract, Buyer will be in default. Initialed for identification byB.u~ and Seller 01 A TREC NO. 20-6 Contract Concerning 330 N. 5th Street. La Porte. TX 77S71 (Address of Property) Page Two 01-06-03 6. TITLE POLICY AND SURVEY: A. TITLE POLICY: Seller shall furnish to Buyer at OSeller's ~Buyer's expense an owner policy of title insurance (Title Policy) issued by , (Title Company) in the amount of the Sales Price, dated at or after closing, insuring Buyer against loss under the provisions of the Title Policy, subject to the promulgated exclusions (including existing building and zoning ordinances) and the following exceptions: (1) Restrictive covenants common to the platted subdivision in which the Property is located. (2) The standard printed exception for standby fees, taxes and assessments. (3) Liens created as part of the financing described in Paragraph 4. (4) Utility easements created by the dedication deed or plat of the subdivision in which the Property is located. (5) Reservations or exceptions otherwise permitted by this contract or as may be approved by Buyer in writing. (6) The standard printed exception as to marital rights. (7) The standard printed exception as to waters, tidelands, beaches, streams, and related matters. (8) The standard printed exception as to discrepancies, conflicts, shortages in area or boundary lines, encroachments or protrusions, or overlapping improvements. Buyer, at Buyer's expense, may have the exception amended to read, "shortages in area". ' B. COMMITMENT: Within 20 days after the Title Company receives a copy of this contract, Seller shall furnish to Buyer a commitment for title insurance (Commitment) and, at Buyer's expense, legible copies of restrictive covenants and documents evidencing exceptions in the Commitment (Exception Documents) other than the standard printed exceptions. Seller authorizes the Title Company to mail or hand deliver the Commitment and Exception Documents to Buyer at Buyer's address shown in Paragraph 21. If the Commitment and Exception Documents are not delivered to Buyer within the specified time, the time for delivery will be automatically extended up to 15 days or the Closing Date, whichever is earlier. C. SURVEY: The survey must be made by a registered professional land surveyor acceptable to the Title Company and any lender. (Check one box only) o (1) Within days after the effective date of this contract, Seller, at Seller's expense, shall furnish a new survey to Buyer. ~(2) Within J. \. days after the effective date of this contract, Buyer, at Buyer's expense, shall obtain a new survey. o (3) Within days after the effective date of this contract, Seller shall furnish Seller's existing survey of the Property to Buyer and the Title Company, along with Seller's affidavit acceptable to the Title Company for approval of the survey. If the survey is not approved by the Title Company or Buyer's lender, a new survey will be obtained at o Seller's 0 Buyer's expense no later than 3 days prior to the Closing Date. D. OBJECTIONS: Within ~ days after Buyer receives the Commitment, Exception Documents and the survey, Buyer may object in writing to defects, exceptions, or encumbrances to title: disclosed on the survey other than items 6A(1) through (7) above; disciosed in the Commitment other than items 6A(1) through (8) above; or which prohibit the following use or activity: . Buyer's failure to object within the time allowed will constitute a waiver of Buyer's right to object; except that the requirements in Schedule C of the Commitment are not waived. Seller shall cure the timely objections of Buyer or any third party lender within 15 days after Seller receives the objections and the Closing Date will be extended as necessary. If objections are not cured within such 15 day period, this contract will terminate and the earnest money will be refunded to Buyer unless Buyer waives the objections. E. TITLE NOTICES: (1) ABSTRACT OR TITLE POLICY: Broker advises Buyer to have an abstract of title covering the Property examined by an attorney of Buyer's selection, or Buyer should be furnished with or obtain a Title Policy. If a Title Policy is furnished, the Commitment should be promptly reviewed by an attorney of Buyer's choice due to the time limitations on Buyer's right to object. (2) MANDATORY OWNERS' ASSOCIATION MEMBERSHIP: The Property 0 is ~is not subject to mandatory membership in an owners' association. If the Property is subject to mandatory membership in an owners' association, Seller notifies Buyer under 95.012, Texas Property Code, that, as a purchaser of property in the residential community in Initialed for identification by Buye and Seller 01A TREC NO. 20-6 Contract Concerning 330 N. 5th Street , La Porte. TX 77571 Page Three 01-06-03 (Address of Property) which the Property is located, you are obligated to be a member of the owners' association. Restrictive covenants governing the use and occupancy of the Property and a dedicatory instrument governing the establishment, maintenance, and operation of this residential community have been or will be recorded in the Real Property Records of the county in which the Property is located. Copies of the restrictive covenants and dedicatory instrument may be obtained from the county clerk. You are obligated to pay assessments to the owners' association. The amount of the assessments is subject to change. Your failure to pay the assessments could result in, a lien on and the foreclosure of the Property. (3) STATUTORY TAX DISTRICTS: If the Property is situated in a utility or other statutorily created district providing water, sewer, drainage, or flood control facilities and services, Chapter 49, Texas Water Code requires Seller to deliver and Buyer to sign the statutory notice relating to the tax rate, bonded indebtedness, or standby fee of the district prior to final execution of this contract. (4) TIDE WATERS: If the Property abuts the tidally influenced waters of the state, 933.135, Texas Natural Resources Code, requires a notice regarding coastal area property to be included in the contract. An addendum containing the notice promulgated by TREC or required by the parties must be used. (5) ANNEXATION: If the Property is located outside the limits of a municipality, Seller notifies Buyer under 95.011, Texas Property Code, that the Property may now or later be included in the extraterritorial jurisdiction of a municipality and may now or later be subject to annexation by the municipality. Each municipality maintains a map that depicts its boundaries and extraterritorial jurisdiction. To determine if the Property is located within a municipality's extraterritorial jurisdiction or is likely to be located within a municipality's extraterritorial jurisdiction, contact all municipalities located in the general proximity of the Property for further information. 7. PROPERTY CONDITION: A. - INSPECTIONS, ACCESS AND UTILITIES: Buyer may have the Property inspected by inspectors selected by Buyer and licensed by TREC or otherwise permitted by law to make inspections. Seller shall permit Buyer and Buyer's agents access to the Property at reasonable times. Seller shall pay for turning on existing utilities for inspections. B. SELLER'S DISCLOSURE NOTICE PURSUANT TO 95.008, TEXAS PROPERTY CODE (Notice): (Check one box only) D (1) Buyer has received the Notice. D (2) Buyer has not received the Notice. Within days after the effective date of this contract, Seller shall deliver the Notice to Buyer. If Buyer does not receive the Notice, Buyer may terminate this contract at any time prior to the closing and the earnest money will be refunded to Buyer. If Seller delivers the Notice, Buyer may terminate this contract for any reason within 7 days after Buyer receives the Notice or prior ~ to the closing, whichever first occurs, and the earnest money will be refunded to Buyer. JoI' (3) The Texas Property Code does not require this Seller to furnish the Notice. C. SELLER'S DISCLOSURE OF LEAD-BASED PAINT AND LEAD-BASED PAINT HAZARDS is reqUired by Federal law for a residential dwelling constructed prior to 1978. D. ACCEPTANCE OF PROPERTY CONDITION: Buyer accepts the Property in its present condition; provided Seller, at Seller's expense, shall complete the following specific repairs and treatments: E. LENDER REQUIRED REPAIRS AND TREATMENTS: Unless otherwise agreed in writing, neither party is obligated to pay for lender required repairs, which includes treatment for wood destroying insects. If the parties do not agree to pay for the lender required repairs or treatments, this contract will terminate and the earnest money will be refunded to Buyer. If the cost of lender required repairs and treatments exceeds 5% of the Sales Price, Buyer may terminate this contract and the earnest money will be refunded to Buyer. F. COMPLETION OF REPAIRS AND TREATMENTS: Unless otherwise agreed in writing, Seller shall complete all agreed repairs and treatments prior to the Closing Date. All required permits must be obtained, and repairs and treatments must be performed by persons who are licensed or otherwise authorized by law to provide such repairs or treatments. At Buyer's election, any transferable warranties received by Seller with respect to the repairs and treatments will be transferred to Buyer at Buyer's expense. If Seller fails to complete any agreed repairs and Initialed for identification by Buye and Seller 01A TREC NO. 20-6 Contract Concerning 330 N. 5th Street, La Porte, TX 77571 Page Four 01-06-03 (Address of Property) treatments prior to the Closing Date, Buyer may do so and receive reimbursement from Seller at closing. The Closing Date will be extended up to 15 days, if necessary, to complete repairs and treatments. G. ENVIRONMENTAL MATTERS: Buyer is advised that the presence of wetlands, toxic substances, including asbestos and wastes or other environmental hazards, or the presence of a threatened or endangered species or its habitat may affect Buyer's intended use of the Property. If Buyer is concerned about these matters, an addendum promulgated by TREC or required by the parties should be used. H. RESIDENTIAL SERVICE CONTRACTS: Buyer may purchase a residential service contract from a residential service company licensed by TREC. If Buyer purchases a residential service contract, Seller shall reimburse Buyer at closing for the cost of the residential service contract in an amount not exceeding $ . Buyer should review any residential service contract for the scope of coverage, exclusions and limitations. The purchase of a residential service contract is optional. Similar coverage may be purchased from various companies authorized to do business in Texas. 8. BROKERS' FEES: All obligations of the parties for payment of brokers' fees are contained in separate written agreements. 9. CLOSING: MAl ? I A. The closing of the sale will be on or before '..7 ~ , 20dLI, or within 7 days after objections to matters disclosed in the Commitment or by the survey have been cured, whichever date is later (Closing Date). If either party fails to close the sale by the Closing Date, the non-defaulting party may exercise the remedies contained in Paragraph 15. B. At closing: (1) Seller shall execute and deliver a general warranty deed conveying title to the Property to Buyer and showing no additional exceptions to those permitted in Paragraph 6 and furnish tax statements or certificates showing no delinquent taxes on the Property. (2) Buyer shail pay the Sales Price in good funds acceptable to the escrow agent. (3) Seller and Buyer shall execute and deliver any notices, statements, certificates, affidavits, releases, loan documents and other documents required of them by this contract, the Commitment or law necessary for the closing of the sale and the issuance of the Title Policy. C. Unless expressly prohibited by written agreement, Seller may continue to show the Property and receive, negotiate and accept back up offers. D. All covenants, representations and warranties in this contract survive c1o~ing. 10. POSSESSION: Seller shall deliver to BuyeLP6ssession of the Property: in its present or required condition, ordinary wear and tear excepted: ~ upon closing and funding 0 according to a temporary residential lease form promulgated by TREC or other written lease required by the parties. Any possession by Buyer prior to closing or by Seller after closing which is not authorized by a written lease will establish a tenancy at sufferance relationship between the parties. Consult your insurance agent prior to change of o~vnership or possession because insurance coverage may be limited or terminated. The absence of a written lease or appropriate insurance coverage may expose the parties to economic loss. 11. SPECIAL PROVISIONS: (Insert only factual statements and business details applicable to the sale. TREC rules prohibit licensees from adding factual statements or business details for which a contract addendum, lease or other form has been promulgated by TREC for mandatory use.) ***THE CITY OF LA PORTE MAKES NO REPRESENTATIONS OR WARRM~TY WHATSOEVER WHETHER EXPRESSED, IMPLIED OR STATUTORY WITH RESPECT TO THEPROPERTY. BUYER AGREES THAT BUYER IS NOT RELYING ON ANY WARRANTY OR REPRESENTATIONS OF CITY OR ANY AGENT, EMPLOYEE, REPRESENTATIVE, DIRECTOR OR OFFICER OF CITY. ***ALL WARRANTIES ARE THROUGH THE BUILDER: BAYOU HOUSING PARTNERS, INC. Initialed for identification by u and Seller 01A TREC NO. 20-6 Contract Concerning Page Five 01-06-03 330 N. 5th street, La Porte, TX (Address of Property) 12. SETTLEMENT AND OTHER EXPENSES: A. The following expenses must be paid at or prior to closing: (1) Expenses payable by Seller (Seller's Expenses): (a) Releases of existing liens, including prepayment penalties and recording fees; release of Seller's loan liability; tax statements or certificates; preparation of deed; one-half of escrow fee; and other expenses payable by Seller under this contract. (b) Seller shall also pay an amount not to exceed $ 0 to be applied in the following order: Buyer's Expenses which Buyer is prohibited from paying by FHA, VA, Texas Veteran's Housing Assistance Program or other governmental loan programs; Buyer's prepaid items~ other Buyer's expenses. (2) Expenses payable by Buyer (Buyer's Expenses): (a) Loan origination, discount, buy-down, and commitment fees (Loan Fees). (b) Appraisal fees; loan application fees; credit reports; preparation of loan documents; interest on the notes from date of disbursement to one month prior to dates of first monthly payments; recording fees; copies of easements and restrictions; mortgagee title policy with endorsements required by lender; loan-related inspection fees; photos, amortization schedules, one-half of escrow fee; all prepaid items, including required premiums for flood and hazard insurance, reserve deposits for insurance, ad valorem taxes and special governmental assessments; final compliance inspection; courier fee, repair inspection, underwriting fee and wire transfer, expenses incident to any loan, and other expenses payable by Buyer under this contract. B. Buyer shall pay Private Mortgage Insurance Premium (PMI), VA Loan Funding Fee, or FHA Mortgage Insurance Premium (MIP) as required by the lender. C. If any expense exceeds an amount expressly stated in this contract for such expense to be paid by a party, that party may terminate this contract unless the other party agrees to pay such excess. Buyer may not pay charges and fees expressly prohibited by FHA, VA, Texas Veteran's Housing Assistance Program or other governmental loan program regulations. 13. PRORATIONS: Taxes for the current year, interest, maintenance fees, assessments, dues and rents will be prorated through the Closing Date. If taxes for the current year vary from the amount prorated at closing, the parties shall adjust the prorations when tax statements for the current year are available. If taxes are not paid at or prior to closing, Buyer shall pay taxes for the current year. 14. CASUAL If' lOSS: If any part of the Property is damaged or destroyed by fire or other casualty after the effective date of this contract, Seller shall restore the Property to its previous condition as soon as reasonably possible, but in any event by the Closing Date. If Seller fails to do so due to factors beyond Seller's control, Buyer may (a) terminate this contract and the earnest money will be refunded to Buyer (b) extend the time for performance up to 15 days and the Closing Date will be extended as necessary or (c) accept the Property in its damaged condition with an assignment of insurance proceeds and receive credit from Seller at closing in the amount of the deductible under the insurance policy. Seller's obligations under this paragraph are independent of any obligations of Seller under Paragraph 7. 15. DEFAULT: If Buyer fails to comply with this contract, Buyer will be in default, and Seller may (a) enforce specific performance, seek such other relief as may be provided by law, or both, or (b) terminate this contract and receive the earnest money as liquidated damages, thereby releasing both parties from this contract. Iff due to factors beyond Seller's control, Seller fails within the time allowed to make any non-casualty repairs or deliver the Commitment, or survey, if required of Seller, Buyer may (a) extend the time for performance up to 15 days and the Closing Date will be extended as necessary or (b) terminate this contract as the sole remedy and receive the earnest money. If Seller fails to comply with this contract for any other reason, Seller will be in default and Buyer may (a) enforce specific performance, seek such other relief as may be provided by law, or both, or (b) terminate this contract and receive the earnest money, thereby releasing both parties from this contract. 16. MEDIATION: It is the policy of the State of Texas to encourage resolution of disputes through alternative dispute resolution procedures such as mediation. Any dispute between Seller and Buyer related to this contract which is not resolved through informal discussion Owill Owill not be submitted to a mutually acceptable mediation service or provider. The parties to the mediation shall bear the mediation costs equally. This paragraph does not preclude a party from seeking equitable relief from a court of competent jurisdiction. Initialed for identification by Buyer a nd Seller Of A TREC NO. 20-6 .... Contract Concerning 330 N. 5th Street, La Porte, TX (Address of Property) Page Six 01-06-03 17. ATTORNEY'S FEES: The prevailing party in any legal proceeding related to this contract is entitled to recover reasonable attorney's fees and all costs of such proceeding incurred by the prevailing party. 18. ESCROW: The escrow agent is not (a) a party to this contract and does not have liability for the performance or nonperformance of any party to this contract, (b) liable for interest on the earnest money and (c) liable for the loss of any earnest money caused by the failure of any financial institution in which the earnest money has been deposited unless the financial institution is acting as escrow agent. At closing, the earnest money must be applied first to any cash down payment, then to Buyer's Expenses and any excess refunded to Buyer. If both parties make written demand for the earnest money, escrow agent may require payment of unpaid expenses incurred on behalf of the parties and a written release of liability of escrow agent from all parties. If one party makes written demand for the earnest money, escrow agent shall give notice of the demand by providing to the other party a copy of the demand. If escrow agent does not receive written objection to the demand from the other party within 30 days after notice to the other party, escrow agent may disburse the earnest money to the party making demand reduced by the amount of unpaid expenses incurred on behalf of the party receiving the earnest money and escrow agent may pay the same to the creditors. If escrow agent complies with the provisions of this paragraph, each party hereby releases escrow agent from all adverse claims related to the disbursed of the earnest money. Escrow agent's notice to the other party will be effective when deposited in the U. S. Mail, postage prepaid, certified mail, return receipt requested, addressed to the other party at such party's address shown below. Notice of objection to the demand will be deemed effective upon receipt by escrow agent. 19. REPRESENTATIONS: Seller represents that as of the Closing Date (a) there will be no liens, assessments, or security interests against the Property which will not be satisfied out of the sales proceeds unless securing payment of any loans assumed by Buyer and (b) assumed loans will not be in default. If any representation of Seller in this contract is untrue on the Closing Date, Buyer may terminate this contract and the earnest money will be refunded to Buyer. 20. FEDERAL TAX REQUIREMENTS: If Seller is a "foreign person," as defined by applicable law, or if Seller fails to deliver an affidavit to Buyer that Seller is not a "foreign person/' then Buyer shall withhold from the sales proceeds an amount sufficient to comply with applicable tax law and deliver the same to the Internal Revenue Service together with appropriate tax forms. Internal Revenue Service regulations require filing written reports if currency in excess of specified amounts is received in the transaction.- 21. NOTICES: All notices from one party to the other must be in writing and are effective when mailed to, hand-delivered at, or transmitted by facsimile as follows: To Buyer at: To Seller at: ANNA MARIA LAKE cITY OF LA PORTE. TEXAS l.jZ-S- Mh H5+Ap+ AI 604 W. Fairmont Pkwy. Lafoth~. '11S7 / La Porte, TX 77571 Telephone:(Z!LJ Lj1 0 - '110 33 Telephone: ( 281) 4'71 C;O?O Facsimile:(ULJ 410- e,bjt-!'1 1~03-4D~~csimile:( 281) 842-1839 22. AGREEMENT OF PARTIES: This contract contains the entire agreement of the parties and cannot be changed except by their written agreement. Addenda which are a part of this contract are (check all applicable boxes): ~ Third Party Financing Condition Addendum o Addendum for Property Subject to Mandatory Membership in an Owners' Association o Seller Financing Addendum o Environmental Assessment, Threatened or Endangered Species and Wetlands Addendum and Seller ~ 01A TREC NO. 20-6 Initialed for identification by ~ k'-. Contract Concerning 330 N. 5th Stn"pt T,;=} Portp rpy 77571 (Address of Property) . Page Seven 01-06-03 o Loan Assumption Addendum o Buyer's Temporary Residential Lease o Seller's Temporary Residential Lease o Addendum for Sale of Other Property by Buyer o Addendum for Seller's Disclosure of Information on Lead-based Paint and Lead-based Paint Hazards as Required by Federal Law o Other (list): o Addendum for "Back-Up" Contract o Addendum for Coastal Area Property o Addendum for Property Located Seaward of the Gulf Intracoastal Waterway o Addendum for Release of Liability on Assumption of FHA, VA, or Conventional Loan Restoration of Seller's Entitlement for VA Guaranteed Loan 23. TERMINATION OPTION: This paragraph will be a part of this contract ONLY if both blankJi are filled in and Buyer has paid the Option Fee. Buyer has paid Seller $ U (Option Fee) for the unrestricted right to terminate this contract by giving notice of termination to Seller within 0 days after the effective date of this contract. If Buyer gives notice of termination within the time specified, the Option Fee will not be refunded, however, any earnest money will be refunded to Buyer. The Option Fee Owill Owill not be credited to the Sales Price at closing. For the purposes of this paragraph, time is of the essence; strict compliance with the time for performance stated herein is required. 24. CONSULT AN ATTORNEY: Real estate licensees cannot give legal advice. READ THIS CONTRACT CAREFULLY. If you do not understand the effect of this contract, consult an attorney BEFORE signing. Buyer's Attorney is: Telephone: (_) Seller's Attorney is: John D. Armstrong ASKINS & ARMSTRONG, P.C. P () Box l?lR. T.;> Porte, TX 77572 Telephone: ( 281) 471-1886 Facsimile: ( 281 ) 471-2047 Facsimile: (_) EXECUTED the 11 day of ~~ (BROKER: FILL IN THE DATE OF FINA ACCEPTANCE.) Onaa- L-: ~h Buyer Buyer I 20~ (EFFECTIVE DATE). s~!wJ~~ Seller The form of this contract has been approved by the Texas Real Estate Commission. TREC forms are intended for use only by trained real estate licensees. No representation is made as to the legal validity or adequacy of any provision in any specific transactions. It is not suitable for compiex transactions. Texas Real Estate Commission, P.O. Box 12188, Austin, TX 78711-2188, 1-800-250-8732 or (512) 459-6544 (http://www.trec.state.tx.us)TRECNO.20-6.This form replaces TREC NO. 20-5. Initialed for identification by Buyer and Seller M- 01A TREC NO. 20-6 Contract Concerning 330 N. 5th StrRPt T~ PnT~e T~ 77571 (Address of Property) . Page Eight 01-06-03 Receipt of $ COption Fee) in the form is acknowledged. Seller Date Listing Broker has agreed to pay Other Broker when Listing Broker's fee is received. Escrow Agent is authorized Listing Broker's fee at closing. BROKER INFORMATION FEE of the total sales price to pay Other Broker from Other Broker License No. License No. , Telephone represents 0 Buyer only as Buyer's agent o Seller as Listing Broker's subagent represents 0 Seller and Buyer as an intermediary o Seller only as Seller's agent Associate Telephone Listing Associate Telephone Broker's Address Listing Associate's Office Address Facsimile Facsimile Selling Associate Telephone Selling Associate's Office Address Facsimile RECEIPT Receipt of 0 Contract and 0 $ is acknowledged. Escrow Agent: Earnest Money in the form of Date: By: Address Telephone C_) City State Zip Facsimile: C_) 01 A TREe NO. 20-6 Aln-OH4 '0:21a", rram-IVuninatl,. .tual ZB1 ~BS iBT4 T-OS( P,002/~Oa F-4;O ~ ~J 02-09-2004 PR,OMUL.GAlCD tlV TH! TeXAS R~AL ~STAT! C~M:..nSStON (TRee) I .~ TH!RD PARTY PlNANCING CONDI~IqN ADDENDUM ! i il TO CONTRACT CONCERNING THE pitOPE~TY AT 330M. S~h s~%eet~ ~a Pc~~~, II~a. " (StrMt AGclrus !lnd elM' : Buyer S1'161l ~pply promptJ)I for all ftnanc:lng d~erlbed below and mike every reasonable effort to ootaln nnanc;;lng approvilJ '1I"Idualng but /'lot limIted to furnishing all information and doaJments required by lel'\~er tor approval. Flnanc:lng approval will be deemed to nave be~n obtlln'd when the lender datermln1il5 tha~ Bwer has letJafied all of lender's tlnllnt:hll rtlC/ulr-ements (those Items ntJi!ltlng to Buyer's 'liI.et:s,lnl:om~ and credit history). If Suyer, cannot o~taln financing ilIPproval, euver must gfve wrItten notlc;;e to S~lIer within _ day. a~el":,t~e _ffeCtlve aat. of thli contr'lld; and thIs contract will termln.tlJ ~nd the eirneet mon~ will be refunded to Buyer. If Buyer ctoe. not give .uch notice within the tlrn. aUowecl, thl. c:antl1lcr wll' no longer b. ....bject to Buyer being appraved. fOr the financing dacrllMd _law, ..or p...rpo.. of this CMnlg...P~ time.. of the ....en~; strict compliance ,with the tI...... 'or perfD.....nce tI.....in RattKIls reaulred. each no~ must b~ .leL/red by vendo~i and t:lt!led of trust liens, i!1 A.. CpNVEN'110NAL. FINANCING: , i ""'0 5 l!f (1) A f1l11t mortgage loan I., th. pl'lndpal 4mount or $ " ..1, co (exc:ludlng any flnangJdPMJ premium), clue In fulf In~ ~ L __yeer(&), w:th Interqt not to exceed -=.l.........- '*' per annum fer the first _ -L ?elr(') of the loan with Leal"! Fees (104,tl o"9Ina~10l1~ dl,cDunt,' buy~down, and Fowmltment fee,) not to eXe8ed -/ :>.- % of the lOll". . " lJ:I (2) A second mortgage loin In the principal amounfof$ Z.J,OOO (excluding any !'InAnced PMl.. preml~m)r d~ In full In -E1 ~ W ,year(I)$ with Interest not tel exceed ~ % per ann",m for tne first ~ _ " _yel!llr(s) or the r~n with Loan Fees (Io.~ :.ortgroatlon, dl~ou"t, bUY-down.,. and commrtment fees) not to exceed IJt A '. % Of the l<NIn. ! aft teXAS vmRANS' HOUSING ASSISTANce PROGRAM, LOAN: A Texas Veteran'~ HousIng Assistance PrOirtJm Lio..,J{ of $ for a pe~iod of at least yell"l It th. Inrltest ra~ e6tabllsnedby the Tl!)(lts Vet~rlnJi !.end 80elrd at the time Qf clc5ing. I Cle. FHA INSURED FINANCIN(;: A Section ! [FHA InJured loen of not len than $ I (ilxeludlng any fJneanced HiP), amcrtl:z:able monthly for not lea than years, with Inter.it not to exceed % per ~nnum for the flret ye.r(s) of the loan With lO'I'1Fee, (loan orlglnatlo/"l, discount, b~y~dow/"tf and commitment fe8:l) not to eXQiled ,% of the loan. M. required by HUO-fHA, If FHA 'Ialuatlon Is unknown, lilt is e;tprs5$lY agreet1 thl'Jt, notwfthstandlng ilrtY ot:"er "revlsion of this COfttraet, the purchaser (Suyer) sh.1I not I>> tJbllgated to wmplete the pUrchase Of the Prop6l'ty deKrlb$i he/em 0(' to Incur .ny pdtUllry by fOrfeit",.. 0( eamest mOi'Jey depDS/ts or othfitrwl. unless the pu.-dJ(I'" (Buy_r) I'Il1$ been !j(lItm in ilccordanc. wlrtf H/JD/FHA or VA requirements . written stacemdnt IssUlld by the Pede"'l 110US/tlQ C"m'ml$s;oner, CJep.rtment or Ve~tls Aff.in;, or. Diret:r cndorB.mfJnt Llfnctsr setting forth th~ .ppraised value of the Property of not lea thitn $_.... ",,-' The pUl'C"'ftr :(tftlY.") sh.J/ h.ve the prIVilege ana cptlor: of proc.flfiing wirll 'cc"~mmatJO('t of thd eon~ct ~~outrt!IQ.rd to Me ~mou"r Df ths .ppf1#lsed v.luatlon. i me appraISe(} ~BII.J't1on Is .rriVed.t to datermftra the maxfmum . mOftOiige the DePlI"tJ1re~t of Housing ilftd Urb.rr Dev~Mt will ;nsurw. HUO does not I warrant tna viflu. Or pt., *.:...condltiOrr of the PrOptJrtV. ~. 'P.... ufClM,ar (Suye,.) should S_66!y h!mseff/h.-salf rnfJt ~ p'fe .nd the condit/on of the P~pef' Me iJcceptable. . 11l1n1ileo rer loen . . I Third Party FinanCing Condition Addendum Concemlng Page Two 02-09-2004 330 N 5th stl:eet.. c.La......Porte. TAxas (Address of Property) (J D. VA GUARANTEED FINANCING: A VA guaranteed loan of not less than $ (excluding any flnanced Funding Fee), amortizable monthly fOf not less than years, with Interest not to exceed % per annum for the first year(s) of the loan with Loan Fees (loan origination, discount, buy-down, and commitment fees) not to exceed % of the loan. VA NOTICE TO BUYER: "It is expressly agreed thett, notwithstanding any other provIsIons of this contract, the Buyer shall not incur any penalty by forfeiture of earnest money or otherwise or be obligated to complete the purchase of the Property described herein, if the contract purchase price or cost exceeds the reasonable value of the Property established by the Dep"rtment of Veterans Affairs. The Buyer shall, however, have the privilege and option of proceeding with the consummation of thIs contract without regard to the amount of the reasonable value established by the Department of Veterans Affairs. " If Buyer elects to complete the purchase at an amount In excess of the reasonable value established by VA, Buyer shall pay such excess amount In cash from a source which Buyer agrees to disclose to the VA and which Buyer rep~esents will not be from borrowed funds except as approved by VA. If VA reasonable value of the Property Is less than the Sales Price, Seller may reduce the Sales Price to an amount equal to the VA reasonable value and the sale will be closed at the lower Sa les Price with proportIonate adjustments to the down payment and the loan amount. Buyer hereby authorIzes any lender to fumlsh to the Seller or Buyer or their representatives Information relating only to the status of financing approval of auyer. ~,,",-L\)J ~ I Buyer 6uyer Seller This form hilS been approved by the Texas Real Estate CommIssion for use with similarly approved or promulgated contract forms. SuCh apprOval relates to this form only. TREC forms are intended for use only by trained real estate licensees. No representation is mllde as to the legal validity or adequacy of any proviSion In any specific transactions. It is not suitable for complex transactions. Texas Real Estate Commission, P.O. Box 12188, Austin, TX 78711-2188, 1-800-250-8732 or (512) 459-6544 (http://www.trec::.!ltate.bt.us)TREeNo.40-1.This form replacfi TR.!;C NQ. 40-0. 01A -------