HomeMy WebLinkAboutO-2008-3090 contracts-Linda Doughty/Buyer,sale of home located at 224 N. 6th Street; propestive buyers for homes at 207 N. 2nd Street, 211 N. 1st Street and 216 N. 2nd
11
REOUEST FOR CITY COUNCIL AGENDA ITEM
Agenda Date Requested: 7/14/08
Requested By: Tim Tietje.. (}5:
Appropriation
Source of Funds: N/A
Department:
Plannin!!:
Account Number: N/A
Report: -X- Resolution: Ordinance: -X..-
Amount Budgeted: N/A
Amount Requested: N/A
Exhibits:
Ordinance
Sales Contract
Budgeted Item:
SUMMARY & RECOMMENDATION
The City is participating in the HOME Program through Harris County to construct five homes as part of
the Northside Neighborhood Plan. The first two homes have been completed and the remaining three are
under construction.
City Council is requested to authorize the sale of the home at 224 N. 6th Street, further described as Lots
3-4, Block 66, priced at $98,000 and to allow the City Manager, as the City's representative, to execute
the closing documents.
The attached ordinance also contains language authorizing the City Manager to execute closing
documents for the remaining three homes located at 211 N. 1st Street, 207 N. 2nd Street, and 216 N. 2nd
Street, at such time as buyers are located for these properties. If approved, the authority granted the City
Manager shall expire 180 days from passage of the ordinance.
~.~
IJanIc
Capital One, N.A.
5718 Westheimer Road, 10th Aoor
Houston, 1X n057
713.435.5716
713.435.5683 Fax
June 13,2008
Linda Doughty
1519 Highway 146 S
La Porte, TX 77571
Re: To Be Determined
La Porte, TX 77571
Dear Customer,
Based on the information you provided, I am pleased to inform you that you have been pre
approved to purchase a home up to $73,000.00 with a sales price of up to $98,000. We await the
contract for the purchase of your home, please contact me right away if you have any other
questions regarding your loan!
All the information you provided is subject to verification and will be subject to underwriting review.
Thanks for contacting Capital One Home Loans, If there is anything else I can do for you, please
contact me at 713-435-5318. Please be informed that buyer is applying for the Harris County down
payment assistance program.
~~~
Loan Consultant
1 ThIs peq....1fiaIlIon Is for the pwchase of a one-lo-four family dwelling, '-"house or condo. No this lime we do not otrer home loans for ooopetatives, IlIlInufaclured
homes. modular homes, moblle homes or C!lfI1Ill8rc1a1 properties. This Is IllII a conwnllrnenl to lend. TIWs peqU81lllc8lion Is based on InformeIion you provided including
your income, credit hisloIy and assets. Arry adWllSe change In the "InfonneIion you provided could change or nUllfy this pequeJllication. In order for us to proceed wIIh
your eppIlcaIion, addllion8llnformetlon will be l1lqUinsd, Including, but not IImled to, a cnsdJt report. selisfeclOly IIpprelael end appropriate evidence oIl11e for the
property being purchased. The avaII8bllty of our home products BIll subject to change. ThIs IJI1lCIII8IIIIcetion expires 45 days after the date of this 1ell8r. You may be
requlnsd to pay ceflain fees and charges for your loan. Other condllicns apply. Speak wIh ~ loan COIlSl.ftent for detells.
ORDINANCE NO. 2008-,r'AD
AN ORDINANCE AUTHORIZING THE CITY MANAGER TO EXECUTE LAND SALE
CONTRACTS AND RELATED DOCUMENTS, AS PART OF THE H.O.M.E. PROGRAM
YEAR 2006 NORTHSIDE NEIGHBORHOOD SINGLE FAMILY CONTRUCTION
PROJECT, BETWEEN THE CITY OF LA PORTE AND LINDA DOUGHTY, FOR
PROPERTY LOCATED AT 224 N.6TH STREET, ALSO DESCRIBED AS LOTS 3-4, BLK.
66; AND BETWEEN THE CITY OF LA PORTE AND BUYERS OF PROPERTIES AT 211
N.lsT STREET, ALSO DESCRIBED AS LOTS 23-24, BLK. 62; 207 N.2ND STREET, ALSO
DESCRIBED AS 21-23, BLK.63; AND 216 N.2ND STREET, ALSO DESCRIBED AS LOTS
3-4, BLK. 62, AT SUCH TIME AS BUYERS ARE LOCATED; 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 contracts, agreements,
conveyance of referenced properties, other undertakings described in the title of this ordinance, in
substantially the form as shown in the documents which are attached hereto and incorporated herein
by this reference. The City Manager is hereby authorized to execute a land sale contract and all
related documents on behalf ofthe City of La Porte for the conveyance of224 N. 6th Street, to buyer
Linda Doughty. Furthermore, the City Manager is hereby authorized to execute land sale contracts
and related documents on behalf of the City of La Porte, with buyers of properties located at 211 N.
1 st Street, 207 N. 2nd Street, and 216 N .2nd Street, at such time as buyers of said properties are located
and agree to purchase same from the City. The authority given to the City Manager to execute the
agreements and related documents approved by this ordinance shall expire one-hundred and eighty
days (180) days from its passage and approval. 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
Page 1 of2
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.
PASSED AND APPROVED, this ~ day of Y u 1\1
7
2008.
CITY OF LA PORTE
~~7~
By:
Alton E. Porter,
Mayor
ATTEST:
Y-tt CvlrH ~, ~VJ.C ~
Martha Gillett,
City Secretary
APPROVED AS TO FORM:
~-r d'~~A4
ar . Askins,
Assistant City Attorney
Page 2 of2
1r=5t PROMULGATED BY THE TEXAS REAL ESTATE COMMISSION (TREe)
NEW HOME CONTRACT
_NO..... (Completed Construction)
0.........,. NOTICE: Not For Use or Condominium nsactions or Closings Prior to Completion of Construction
1. PARTIES: . 0 f 0 (Seller) agrees to
sell and convey to . N (Buyer) and
Buyer agrees to buy from Seller the Property ibed below.
2. PROPERTY: Lot 3- 4 ,Block 0b,
Addition, City of L , ounty of Hew" ( I 5 ,
Texas, known as e .
(address/zip code), or as describea on a ched exhibit, toge her with: (i) improvements,
fixtures and all other property located thereon; and (ii) all rights, privileges and appurtenances
thereto including but not limited to: permits, easements(, and cooperative and association
memberships. All property sold by this contract is called 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) ...................................................... $ q<6, DDDO()
4. FINANCING: The portion of Sales Price not payable in cash will be paid as follows: (Check
applicable boxes below)
U A. THIRD PARTY FINANCING: One or more third party mortgage loans in the total amount of
$ (excluding any loan funding fee or mortgage insurance premium).
(1) Property Approval: 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.
(2) Einancin~ Approval: (Check one box only)
U (a) ThiS contract is subject to Buyer being approved for the financing described in the
attached Third Party Financing Condition Addendum.
o (b) 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. VI
o C. SELLER FINANCING: A promissory note from Buyer to Seller of $ 0\ ,
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 thO contract b both p Buye shall deposit
$ SODC5::! as earnest mone w' h i i <e,
as escrow agent, at (:) It?
(address). Buyer shall deposit additional earnest m ney 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.
6. TITLE POLICY AND SURVEY:
A.TITLE POUCY: Seller shall furnish to Buyer at
title insurance (Title Policy) issued by I
(Title Company) in the amou t of e 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:
III 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 ti insurance (Commitment) and, at Buyer's
expense, legible copies of restrictive covenants a do ents evidencing exceptions in the
Commitment (Exception Documents) other than st ndard printed exceptions. Seller
Initialed for identification by Buye and Seller TREC NO. 24-6
02-13-06
Contract Concerning
Page 2 of 9 02-13-06
authorizes the Title Company to 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
tbe-Title Company grld any lender. (Check one box only)
lia (1) Within i"'l days after the effective date of this contract, Seller shall furnish to
Buyer and Title Company Seller's existing survey of the Property and a Residential Real
Property Affidavit promulgated by the Texas Department of Insurance (Affidavit). If
the existing surveyor Affidavit is I1Qj: acceptable to Title Company or Buyer's lender,
Buyer shall obtain a new survey at U Seller's U Buyer's expense no later than 3 days
prior to Closing Date. If Seller fails to furnish the existing surveyor Affidavit within the
time prescribed, Buyer shall obtain a new survey at Seller's expense no later than 3
days prior to Closing Date.
D (2) Within days after the effective date of this contract, Buyer shall obtain a new
surver at Buyer's expense. Buyer is deemed to receive the survey on the date of
actua receipt or the date specified in this paragraph, whichever is earlier.
D (3) Within days after the effective date of this contract, Seller, at Seller's expense
shall furnish a new survey to Buyer.
D. OBJECTIONS: 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 must object not later than (i) the Closing Date or (ii) _ days after Buyer receives
the Commitment, Exception Documents, and the survey, whichever is earlier. 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. Provided Seller is
not obligated to incur any expense, 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 D is UJ;'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
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. If Buyer is concerned about these matters, the TREC promulgated
Addendum for Property Subject to Mandatory Membership in an Owner's Association
should be used.
(3) STATUTO~Y !AX DI?~RICTS: If the Prope~ is situated in a utility ~: other statutorily
created dlstnct 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 det ine if the Property is located within a
municipality's extraterritorial jurisdiction or is Ii lobe located within a municipality's
extraterritorial jurisdiction, contact all municipali i ed in the general proximity of the
Initialed for identification by BuyerL f'nJ) and Seller TREC NO. 24-6
Contract Concerning
tf Not+(1 ' +
(Address of Property)
Page 3 of 9 02-13-06
Property for further information.
(6) PROPERlY LOCATED IN A CERTIFICATED SERVICE AREA OF A UTIUlY SERVICE
PROVIDER: Notice required by ~13.257, Water Code: The real property, described in
Paragraph 2, that you are about to purchase may be located in a certificated water or
sewer service area, which is authorized by law to provide water or sewer service to the
properties in the certificated area. If your property is located in a certificated area there
may be special costs or charges that you will be required to pay before you can receive
water or sewer service. There may be a period required to construct lines or other
facilities necessary to provide water or sewer service to your property. You are advised to
determine if the property is in a certificated area and contact the utility service provider
to determine the cost that you will be required to pay and the period, if any, that is
required to provide water or sewer service to your property. The undersigned Buyer
hereby acknowledges receipt of the foregoing notice at or before the execution of a
binding contract for the purchase of the real property described in Paragraph 2 or at
closing of purchase of the real property.
(7) PUBLIC IMPROVEMENT DISTRICTS: If the Property is in a public improvement district,
~5.014, Property Code, requires Sel~er to notify Buyer as follows: As a purchaser of this
parcel of real property you are obligated to pay an assessment to a municipality or
county for an improvement project undertaken by a public improvement district under
Chapter 372, Local Government Code. The assessment may be due annually or in
periodic installments. More information concerning the amount of the assessment and the
due dates of that assessment may be obtained from the municipality or county levying
the assessment. 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 your property.
7. PROPERTY CONDITION:
A. ACCESS,INSPECTIONS AND UTILITIES: Seller shall permit Buyer and Buyer's agents access
to the Property at reasonable times. Buyer may have the Property inspected by inspectors
selected by Buyer and licensed by TREC or otherwise permitted by law to make inspections.
Seller shal pay for turning on existing utilities for inspections.
B. ACCEPTANCE OF PROPERlY CONDITION: Buyer accepts the Property in its present condition;
provided Sellerr at Seller's expense, shal complete the following specific repairs and
treatments; ana make the follOWing improvements:
C. WARRANTIES: Except as expressly set forth in this contract, a separate writing, or prOVided
by law, Seller makes no other express warranties. Seller shall assign to Buyer at closing all
assignable manufacturer warranties.
D. INSULATION: As required by Federal Trade Commission Regulations, the information
relating to the insulation installed or to be installed in the Improvements at the Property is:
(check only one box below)
U (1) as shown in the attached specifications.
CJ (2) as follows:
a) Exterior walls of improved living areas: insulated with
insulation to a thickness of inches which yields an R-Value of
b) Walls in other areas of the home: insulated with
insulation to a thickness of inches which yields an R-Value of
c) Ceilings in improved living areas: insulated with
insulation to a thickness of inches which yields an R-Value of
d) Floors of improved living areas not applied to a slab foundation: insulated with
insulation to a thickness of _ inches which yields an R-Value of _'
e) Other insulated areas:insulated with insulation to
a thickness of inches which yields an R-Value of .
All stated R-Values are based on information provided by the manufacturer of the insulation.
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, TREATMENTS, AND IMPROVEMENTS: Unless otherwise agreed in
writing, Seller shall complete all agreed repairs, treatments, and improvements (Work) prior
to the Closing Date. All required permits must be obtained, and Work must be performed by
persons who are licensed or otherwise authorized by law to provide such Work. At Buyer's
election, any transferable warranties received by Seller with respect to the Work will be
transferred to Buyer at Buyer's expense. If Seller fails to complete any agreed Work prior to
the Closing Date, Buyer may do so and receive r' ursement from Seller at closing. The
Closing Date will be extended up to 15 days, if ne ss ry, to complete Work.
Initialed for identification by Buyerl..1Y\.()
TREC NO. 24-6
Contract Concerning J 14 N oifh & - Sf J ((1 -PrYfe! -& Page 4 of 9 02-13-06
(Address of Property)
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. SELLER'S DISCLOSURE: Except as otherwise disclosed in this contract, Seller has no
knowledge of the following:
(1) any flooding of the Property which has had a material adverse effect on the use of the
Property ;
(2) any pending or threatened litigation, condemnation, or special assessment affecting the
Property ;
(3) any environmental hazards or conditions materially affecting the Property;
(4) any dumpsite, landfill, or underground tanks or containers now or previously located on the
Property ;
(~any wetlands, as defined by federal or state law or regulation, affecting the Property; or
(6 any threatened or endangered species or their habitat affecting the Property.
1. R SIDENTIAL 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 covera~e, 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: "
A. The closing of the sale will be on or before f11A~u.S+ I ~ , 20_, or within 7 days
after objections made under Paragraph 60 have been cured or waived, 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:
(l)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.
e. 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 Buy~ possession of the PropertY. in its present or required
condition, ordinary wear and tear excepted: U upon closing and funding a according to a temporary
residential lease form promulgated by TREC or other written lease required by the parties. Any
possession by Buyer prior to dosing 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 a~ent prior to change of ownership and 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.)
Initialed for identification by Buye
TREC NO. 24-6
and Seller
Contract Concerning
J.:J ~ N (If+t,. 0 4~ UJJc>e T~ I 'N..
(Add res of Property)
Page 5 of 9 02-13-06
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 feef' and other expenses payable by Seller under this contract.
(b)Seller shal 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 Veterans Housing Assistance Program or other governmental loan programs, and
then to other Buyer's Expenses as allowed by the lender.
(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; wire transfer fee; 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
Veterans Housing Assistance Program or other governmental loan program regulations.
13. PRORATIONS AND ROLLBACK TAXES:
A. PRORATIONS: Taxes for the current year, maintenance fees, assessments, dues and rents
will be prorated through the Closing Date. The tax proration may be calculated taking into
consideration any change in exemptions that will affect the current year's taxes. 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 will be obligated to pay taxes for the current year.
B. ROLLBACK TAXES: If Seller's change in use of the Property prior to closing or denial of a
special use valuation on the Property results in additional taxes, penalties or interest
(Assessments) for periods prior to closing, the Assessments will be the obligation of Seller.
Obligations imposed by this paragraph will survive closing.
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 other obligations of Seller under this contract.
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. Subject to applicable law, any
dispute betw.een seller and Buyer related to this contract which is not resolved through informal
discussion Uwill Uwill 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 c of competent jurisdiction.
TREC NO. 24-6
Initialed for identification by BuyerLM.i)
and Seller
Contract Concerning I.~ ~ t.f AI fJy+tt - Sf, Lk (fte .'~ Page 6 of 9 02-13-06
(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:
A. ESCROW: The escrow agent is not (i) a party to this contract and does not have liability for
the performance or nonperformance of any party to this contract, (ii) liable for interest on the
earnest money and (iii) 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.
B. EXPENSES: 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 no closing occurs, escrow
agent may require payment of unpaid expenses incurred on behalf of the parties and a
written release of liability of escrow agent from all parties.
C. DEMAND: Upon termination of this contract, either party or the escrow agent may send a
release of earnest money to each party and the parties shall execute counterparts of the
release and deliver same to the escrow agent. If either party fails to execute the release,
either party may make a written demand to the escrow agent for the earnest money. If only
one party makes written demand for the earnest money, escrow agent shall promptly provide
a copy of the demand to the other party. If escrow agent does not receive written objection to
the demand from the other party within 15 days, escrow agent may disburse the earnest
moner to the party making demand reduced by the amount of unpaid expenses incurred on
behal 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.
D. DAMAGES: Any party who wrongfully fails or refuses to sign a release acceptable to the
escrow agent within 7 days of receipt of the request will be liable to the other party for
liquidated damages of three times the amount of the earnest money.
E. NOTICES: Escrow agent's notices will be effective when sent in compliance with Paragraph 21.
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 there will be no liens,
assessments, or security interests against the Property which will not be satisfied out of the
sales proceeds. If any representation of Seller in this contract is untrue on the Closing Date,
Seller will be in default.
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 or electronic transmission as follows:
To Buyer at:
To Seller at:
_L"If1:~~t~cdL
L C\.1>\5'f V- ~A.s
Telephone: &3~ ff~ -71;;l3
~~ L " 'Vud:-e.
fo()4 lu~~-+.:fCtiyVVl~ ~k~
L~ rpl1Yt~ I'T~ (7)1/
Telephone: (?~ /) tf76~ S-ODO
Facsimile:
Facsimile: (
E-mail:
E-mail:
Initialed for identification by Buye~
TREC NO. 24-6
and Seller
Contract Concerning
, L/ I
(Address of Property
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 Rnandng Condition Addendum
o Seller Financing Addendum
Page 7 of 9 02-13-06
o Addendum for "Back-Up" Contract
o
Environmental Assessment, Threatened
or Endangered Species and Wetlands
Addendum
o Addendum for Coastal Area Property
o Addendum for Property Subject to
Mandatory Membership in an Owners'
Association
o Buyer's Temporary Residential Lease
o Addendum for Sale of Other Property by
Buyer
o Addendum for Property Located
Seaward of the Gulf Intracoastal
Waterway
o Other (list):
23. TERMINATION OPTION: For nominal consideration, the receipt of which is hereby
acknowledged by Seller, and Buyer's agreement to pay Seller $ (Option Fee)
within 2 days after the effective date of this contract, Seller grants Buyer the unrestricted right
to terminate this contract by giving notice of termination to Seller within days after the
effective date of this contract. If no dollar amount is stated as the Option Fee or if Buyer fails to
pay the Option Fee within the time prescribed, this paragraph will not be a part of this contract
and Buyer shall not have the unrestricted right to terminate this contract. If Buyer gives notice
of termination within the time prescribed, the Option Fee will not be refunded; however, any
earnest money will be refunded to Buyer. The Option Fee Dwill Dwill not be credited to the
Sales Price at closing. Time is of the essence for this paragraph and strict compliance
with the time for performance 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:
Telephone:
)
Telephone: (
Facsimile: (
Facsimile:
(
E-mail:
E-mail:
Initialed for identification by BuyerC....tn1l
TREC NO. 24-6
and Seller
Contract Conceming
Page 8 of 9 02-13-06
EXECUTED the day of
(BROKER: FILL IN THE DATE OF FINAL ACCEPTANCE.)
. 20_ (EFFECTIVE DATE).
This contract is subject to Chapter 27 of the
Texas Property Code. The provisions of that
chapter may affect your right to recover
damages arising from the performance of this
contract. If you have a complaint concerning a
construction defect arising from the
performance of this contract and that defe
has not been corrected through norm
warranty service, you must provide the noti
required by Chapter 27 of the Texas Prope
Code to the contractor by certified mail, retu
receipt requested, not later than the 60th da
before the date you file suit to recover
damages in a court of law or initiate
arbitration. The notice must refer to Chapter
27 of the Texas Property Code and must
describe the construction defect. If requested
by the contractor, you must provide the
contractor an opportunity to inspect and cure
the defect as provided by Section 27.004 of
the Texas Property Code.
;;1~d<)?Z 1tXu~
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 intended for complex transactions. Texas Real Estate Com-
mission, P.O. Box 12188, Austin, TX 78711-2188, 1-800-250-8732 or (512) 459-6544 (http://
www.trec.state.tx.us)TRECNO.24-6.This form replaces TREC NO. 24-5.
TREe NO. 24-6
Contract Concerning
{'/..
Page 9 of 9 02-13-06
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 License No.
Other Broker License No.
represents Cl Buyer only as Buyer's agent
Cl Seller as Listing Broker's subagent
represents Cl Seller and Buyer as an intennediary
Cl Seller only as Seller's agent
Telephone
Listing Associate
Telephone
Associate
Listing Associate's Office Address
Facsimile
Broker's Address
City
State
Zip
City
State
Zip
Email Address
Facsimile
Selling Associate
Telephone
Email Address
Facsimile
Selling Associate's Office Address
City
State
Zip
Email Address
OPTION FEE RECEIPT
Receipt of $
(Option Fee) in the form of
is acknowledged.
Seller or Listing Broker
Date
CONTRACT AND EARNEST MONEY RECEIPT
Receipt of DContract and 0$
is acknowledged.
Escrow Agent:
Earnest Money in the form of
Date:
By:
Email Address
Telephone (
Address
Facsimile: (
City
State
Zip
TREe NO. 24-6