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HomeMy WebLinkAboutO-2004-2716 REQUEST FOR CITY COUNCIL AGENDA ITEM Department: Planning Appropriation , Agenda Date Requested: Requested By: Source of Funds: N/A Account Number: N/A Report: Resolution: Ordinance: x Amount Budgeted: N/A Exhibits: Ordinance Amount Requested: NI 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 1,485 sq. ft. home at 323 North 7th Street priced at $85,000. Action Required bv Council: Consider approval of an ordinance authorizing the sale of the home located at 323 N. 7th Street as part of the City's HOME Grant, and authorizing the City Manager as the City's representative to execute the closing documents. A ~ --&-01 Date ORDINANCE NO. 2004- ~ 1 f b AN ORDINANCE APPROVING AND AUTHORIZING A CONTRACT BETWEEN THE CITY OF LA PORTE (SELLER) AND WILLIE E. COLLINS (BUYER) FOR THE SALE OF A MODEL HOME LOCATED AT 323 N. 7TH STREET, MORE SPECIFICALLY DESCRIBED AS LOTS 29 AND 30 OF BLOCK 77, 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- a 1/&> PASSED AND APPROVED, this Ii- U~ay of Af-i I CITY OF LA PORTE ~ : Peter Griffith~, Mayor ProTem ATTEST: ~1 ltAJICt1f ttft)UV artha A. Gillett City Secretary PAGE 2 ,2004. G:t 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 IQUAL HOU.'NO DPPOATVNfTT 1. PARTIES: sell and convey to Buyer agrees rom Seller the Property described below. (Seller) agrees to (Buyer) and 29 and 30 (address/zip code), or as described 0 ched exhibit. IMPROVEMENTS: The house, ar It-other fixt . ements attached to the ropertY, --mc uding 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, ~f-1;hrUbbery, 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: 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 84.500.00 85.000,00 4. FINANCING: The portion of Sales Price not payable in cash will be paid as follows: (Check applicable boxes below) . Ga A. THIRD PARTY FINANCING: One or more third party mortgage loans in the total amount of $ 8<1. <;00 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 refunded to Buyer. (Check one box only) 0(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 $ <;on nn as earnest money with Fi np 1 ; t-y 'T'; t-l p , 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 by BuyerJ' 01A TREC NO. 20-6 Contract Concerning 323 N. 7th St.. La P0rte. TX (Address of Property) Page Two 01-06-03 6. TITLE POLICY AND SURVEY: A. TITLE POLICY: Seller shall furnish to Buyer at OSeller1s OBuyer1s expense an owner policy of title insurance (Title Policy) issued by (Title Company) in the amount of the Sales Pricel dated at or after c10singl insuring Buyer against loss under the provisions of the Title PolicYI 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 feesl 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 watersl tidelandsl beachesl 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 Buyers expense, may have the exception amended to readl "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) andl 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 Dater 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 contractr Sellerr at Seller1s expenser shall furnish a new survey to Buyer. o (2) Within days after the effective date of this contract, Buyer, at Buyer1s 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 lenderl 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 surveYI Buyer may object in writing to defects, exceptions, or encumbrances to title: disclosed on the survey other than items 6A(1) through (7) above; disclosed 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 Buyer1s 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 ~uyer 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 Buyer1s 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 Buyer1s choice due to the time limitations on Buyer1s right to object. (2) MANDATORY OWNERS' ASSOCIATION MEMBERSHIP: The Property 0 is 0 is not subject to mandatory membership in an owners' association. If the Property is subject to mandatory membership in an owners' association 1 Seller notifies Buyer under 95.0121 Texas Property Codel that, as a purchaser of property in the residential community in Initialed for identification by Buyer JiiJ, e. U and Seller M- 01A TREC NO. 20-6 Contract Concerning 323 N. 7th St., La Porte, TX 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. D (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 wilt 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 Buyer /W e.-L- and Seller h1'J....-r- 01 A TREC NO. 20-6 Contract Concerning 323 N. 7th St.. La Porte. TX 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: t\ ~ ~ I A. The closing of the sale will be on or before ~ vIOf(}) 30 , 20~ 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 shall 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 closing. 10. POSSESSION: Seller shall deliver to Buyer possession of the PropertY. in its present or required condition, ordinary wear and tear excepted: 0 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 ownership 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 WARRANTY WHATSOEVER WHETHER EXPRESSED, IMPLIED OR STATUTORY WITH RESPECT TO THE PROPERTY. BUYER AGREES THAT BUYER IS NOT RELYING ON ANY WARRANTY OR REPRESENTATIONS OF CITY OR ANY AGENT, EMPLO mE, REPRESENTATIVE, DIRECTOR OR OFFICER OF CITY. ***ALL WARRANTIES ARE THROUGH THE BUILDER: BAYOU HOUSING PARTNERS, INC. Initialed for identification by Buyer//)J~. C and Seller ~+- 01A TREC NO. 20-6 Contract Concerning 323 No 7th St., La Porte, TX Page Five 01-06-03 (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 $ 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 (PM I), 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 TV 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. If, 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) e: ~ and Seller J\..-i- 01A TREC NO. 20-6 ~ IJo Contract Concerning Page Six 01-06-03 171 N 7rh Sr . Tori Pnrh" 'T'X (Address of Property) 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 disbursal 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: WILLIE E. COLLINS (,T'T'Y nF TJI, pn'R'T'F.. 'T'X '1 '1 ry :) 0 I-V+h 'K. ~+ fr ~ 18 604 W. Fairmont Pkwy. ffoushJY\ J IX. 77611 La Porte, TX 77571 Telephone:~) Jf1/ - :2 7 O~ Telephone:( 281 ) .171 <;n?n Facsimile:(_) Facsimile:(_) 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): o 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 [nitialed for identification by Buyer J'()/,.[. C. Contract Concerning 323 N. 7th St. , La Porte, TX (Address of Property) Page Seven 01-06-03 o Loan Assumption Addendum o Buyer1s Temporary Residential Lease o Seller's Temporary Residential Lease o Addendum for Sale of Other Property by Buyer o Addendum for "Back-Up" Contract o o o Addendum for Coastal Area Property Addendum for Property Located Seaward of the Gulf Intracoastal Waterway Addendum for Release of Liability on Assumption of FHA, VA, or Conventional Loan Restoration of Seller1s Entitlement for VA Guaranteed Loan 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): 23. TERMINATION OPTION: This paragraph will be a part of this contract ONLY if both blanks are filled in and Buyer has paid the Option Fee. Buyer has paid Seller $ (Option Fee) for the unrestricted right to terminate this contract by giving notice of termination to Seller within 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: Seller's Attorney is: John f). Armsrrnng P. o. Bnx 1:/1 R T.rI Port'",. 'T'Y 77572 Telephone: (_) Telephone: (281) 471-1886 Facsimile: (_) Facsimile: (--2lll) 471-2047 EXECUTED the day of (BROKER: FILL IN THE DATE OF FINAL ACCEPTANCE.) . 20_ (EFFECTIVE DATE). ';J)fI~ ,I. CIJ~~ Buyer ~~~ Buyer 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 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.state.tx.us)TRECNO.20-6.This form replaces TREC NO. 20-5. Initialed for identification by Buyer.j()) e. 0 and Seller r/S1o,r 01A TREC NO. 20-6 Contract Concerning 123 N. 7th St., La Porte, TX 77571 (Address of Property) Page Eight 01-06-03 SELLER'S RECEIPT Receipt of $ (Option Fee) in the form of is acknowledged. Date Seller BROKER INFORMATION AND RATIFICATION OF FEE Listing Broker has agreed to pay Other Broker of the total sales price when Listing Broker's fee is received. Escrow Agent is authorized and directed to pay Other Broker from Listing Broker's fee at closing. Listing Broker Other Broker License No. Telephone 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 Listing Associate's Office Address Facsimile Broker's Address Telephone Facsimile Selling Associate 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: Telephone ( Address Facsimile: ( City State Zip 01A TREe NO. 20-6 €t 10-29-01 PROMULGATED BY THE TEXAS REAL ESTATE COMMISSION (TREC) IQUAL NOU..... DPPOIlT\JNITT THIRD PARTY FINANCING CONDITION ADDENDUM TO CONTRACT CONCERNING THE PROPERTY AT 323 N. 7th Sf- T.,=, Pnrt-I'>. 'T'X 77571 (Street Address and City) Buyer shall apply promptly for all financing described below and make every reasonable effort to obtain financing approval. Financing approval will be deemed to have been obtained when the lender determines that Buyer has satisfied all of lender's financial requirements (those items relating to Buyer's assets, income and credit history). If financing (including any financed PMI premium) approval is not obtained within _ days after the effective date, this contract will terminate and the earnest money will be refunded to Buyer. Each note must be secured by vendor's and deed of trust liens. CHECK APPLICABLE BOXES: [B" A. CONVENTIONAL FINANCING: ur (1) A first mortgage loan in the principal amount of $ (P5! 000 . (excluding any financed PMI premium), due in full in 30 year(s), with interest not to exceed UI"I-- % per annum for the first ~O year(s) of the loan with Loan Fees not to exceed 1, % of the loan. The loan will be IE( with 0 without PMI. o (2) A second mortgage loan in the principal amount of $ Zl,OOO (excluding any financed PMI premium), due in full in 10 year(s), with interest not to exceed 0 % per annum for the first I C) year(s) of the loan with Loan Fees not to exceed Z, % of the loan. The loan will be 0 with ~without PMI. o B. TEXAS VETERANS' HOUSING ASSISTANCE PROGRAM LOAN: A Texas Veteran's Housing Assistance Program Loan of $ for a period of at least years at the interest rate established by the Texas Veteran's Land Board at the time of closing. Dc. FHA INSURED FINANCING: A Section FHA insured loan of not less than $ (excluding any financed MIP), amortizable monthly for not less than years, with interest not to exceed % per annum for the first year(s) of the loan with Loan Fees not to exceed % of the loan. As required by HUD-FHA, if FHA valuation is unknown, "It is expressly agreed that,. notwithstanding any other provision of this contract, the purchaser (Buyer) shall not be obligated to complete the purchase of the Property described herein or to incur any penalty by forfeiture of earnest money deposits or otherwise unless the purchaser (Buyer) has been given in accordance with HUD/FHA or VA requirements a written statement issued by the Federal Housing Commissioner, Department of Veterans Affairs, or a Direct Endorsement Lender setting forth the appraised value of the Property of not less than $. . The purchaser (Buyer) shall have the privilege and option of proceeding with consummation of the contract without regard to the amount of the appraised valuation. The appraised valuation is arrived at to determine the maximum mortgage the Department of Housing and Urban Development will insure. HUD does not warrant the value or the condition of the Property. The purchaser (Buyer) should satisfy himself/herself that the price and the condition of the Property are acceptable. n If the FHA appraised value of the Property (excluding closing costs and MIP) is less than the Sales Price, Seller may reduce the Sales Price to an amount equal to the FHA appraised value (excluding closing costs and MIP) and the sale will be closed at the lower Sales Price with proportionate adjustments to the down payment and loan amount. Initialed for identification by Buyer / fJ} .e. C,. and Seller i(1+- -, 01A Third Party Financing Condition Addendum Concerning Page Two 10-29-01 323 N. 7th St., La Porte, TX 77571 (Address of Property) o D. VA GUARANTEED FINANCING: A VA guaranteed loan of not less than $ (excluding any financed Funding Fee), amortizable monthly for not less than years, with interest not to exceed % per annum for the first year(s) of the loan with Loan Fees not to exceed % of the loan. VA NOTICE TO BUYER: "It is expressly agreed that, 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 Department 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. n 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 represents 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 Sales Price with proportionate adjustments to the down payment and the loan amount. J Jd!19JLJ~~ v' 20M, ~ tl~ ~~ Buyer Buyer Seller This form has 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 made 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.state.tx.us) TREC No. 40-0. 01A