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2014-022 - Authorizing a contract for the acquisition of real propertyRESOLUTION NO. 2014 -022 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PARIS, TEXAS, AUTHORIZING A CONTRACT FOR THE ACQUISITION OF REAL PROPERTY; TO APPROVE A CONVEYANCE OF REAL PROPERTY TO THE TAXING UNITS IN PAYMENT OF ALL TAXES (INCLUDING ANY DELINQUENT TAX, PENALTY AND INTEREST) ASSESSED AGAINST THE REAL PROPERTY AS AUTHORIZED BY TEXAS PROPERTY TAX CODE SECTION 31.061; TO APPROVE THE PRIVATE RE -SALE OF THE PROPERTY PURSUANT TO TEXAS PROPERTY TAX CODE SECTION 34.05(1); AND TO AUTHORIZE THE PURCHASE OF THE REAL PROPERTY. MAKING OTHER FINDINGS AND PROVISIONS RELATED TO THE SUBJECT; AND PROVIDING AN EFFECTIVE DATE. WHEREAS, The City of Paris desires to acquire a tract of real property (the "Property ") generally described as: Lamar CAD Acct. No. 18639, "CITY OF PARIS, BLOCK 308, LOT 1, ACRES 20.741" and as described in greater detail as "Tract II" in that Warranty Deed from Joe B. Grizzle to Neal G. Wall and Vivia K. Wall, recorded in the Deed Records of Lamar County, Texas, Book OR Volume 1933, Page 217, attached hereto as Exhibit "A ", for multiple public purposes; and WHEREAS, substantial amounts of taxes (including delinquent taxes, penalties and interest) assessed against the Property are owed to Lamar County, the City of Paris, Paris ISD and Paris Junior College; and WHEREAS, Texas Property Tax Code Section 31.061 authorizes the conveyance of real property to the taxing units in lieu of paying taxes (including any delinquent tax, penalty and interest) on that real property, subject to the approval of the governing bodies of all taxing units; and WHEREAS, should the Property be conveyed to the taxing units pursuant to Texas Property Tax Code Section 31.061, Section 34.05(i) provides that the Property may be sold by private re -sale in lieu of a public sale with the approval of all taxing units entitled to receive proceeds from the sale, being the City of Paris, Lamar County, Paris ISD and Paris Junior College; and WHEREAS, the current owner of the Property has agreed to this conveyance in principle. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF PARIS, TEXAS: Section 1. That the findings set out in the preamble to this resolution are hereby in all things approved. Section 2. A contract of sale attached hereto as Exhibit "B" between the City of Paris (as trustee for the taxing units) and the current owner(s) of the Property is hereby authorized, to convey the Property to the taxing units in lieu of paying the taxes owing on it, subject to the terms of Texas Property Tax Code Section 31.061 and the further approvals of Lamar County, Paris ISD and Paris Junior College. All transaction costs of the sale shall be borne by the City of Paris, subject to appropriation. Section 3. A conveyance of the Property to the taxing units in lieu of the payment of taxes, per Texas Property Tax Code Section 31.061, is hereby approved. Section 4. Should the Property be conveyed to the taxing units per Texas Property Tax Code Section 31.061, a subsequent private re -sale of the Property to the City of Paris for $1.00 pursuant to Texas Property Tax Code Section 34.05(1) is hereby approved. Section S. The purchase of the Property by private re -sale made pursuant to Texas Property Tax Code Section 34.05(1) for $1.00 is hereby authorized. Section 6. Proceeds from the private re -sale of the Property shall be distributed as required by the Texas Property Tax Code. Section 7. That this resolution shall be effective from and after its date of passage. PASSED AND APPROVED this 9th day of June, 2014. CITY OF PARIS, TEXAS ,�/(i(.✓�i�.l,�.�t% ✓mot l.L�bd�' Richard Grossnickle, Mayor Pro -Tem ATTEST: ice Ellis, City Clerk APPROVED AS TO FORM: Kent McIlyar, City Attorney LXSRZASR 9 Bk VO7. 00OS2228 [712 1933 217 NOTICE OF CONFIDENTIALITY RIGHTS: IF YOU ARE A NATURAL PERSON, YOU MAY REMOVE OR STRIKE ANY OR ALL OF THE FOLLOWING INFORMATION FROM ANY INSTRUMENT THAT TRANSFERS AN INTEREST IN REAL PROPERTY BEFORE IT IS FILED FOR RECORD IN THE PUBLIC RECORDS: YOUR SOCIAL SECURITY NUMBER OR YOUR DRIVER'S LICENSE NUMBER " DRAFTEDWITHOUT BENEFIT OF TITLE E iATiON TITLE SURANCE R. E. GOODING, ATTORNEY VLAW 2252 Prepared by the State Bar of Texas for use by lawyers only. Revised 10-85. 01985 by the State Bar of Texas WARRANTY DEED (Long Form) Date: August, l4, 2007 Grantor: Joe B. Grizzle, not joined by his wife herein because the hereinafter described property constitutes no part of his homestead exempt from forced sale under the Constitution and Laws of the State of Texas Grantor's Mailing Address (including county): 10062 Farm Road 195 Bagwell, Red River County, TX 75412 -3815 Grantee: Neal G. Wall and wife, Vivia IC. Wall Grantee's Mailing Address (including county): P. O. Box 370 Newbern, Dyer County, IN 38059 -0370 Consideration: Ten and No /100 Dollars ($10.00) cash and other good and valuable consideration paid by Grantees to Grantor, the receipt of which is hereby acknowledged. Property (including any improvements): TRACT I• All of grantors' undivided interest in and to the following described tract of land: All that certain tract or parcel of land situated within the corporate limits of the City of Paris, County of Lamar, and State of Texas, a part of the EM AM WILLIAMS SURVEY, ABSTRACT NO. 1003, and being a called 7.4988 acre tract of land conveyed Greb Construction, Inc. by deed recorded in Volume 108, Page 130 of the Real Property Records of said County and State; BEGINNING at an iron pin (f) in corner at the Southwest corner of said 7.4988 acre tract, said point being the Southeast corner of Lot 1, Block "A ", Cherry Lane Estates; THENCE along the West Boundary line of said 7.4988 acre tract as follows: North 00 00' 12" West a distance of 579.91 ft, to an iron pin (f) at the Northeast corner of Lot 7, Block "A ", Cherry Lane Estates, said point being the Southeast corner of a called 0.963 acre tract of land conveyed Greb, Inc., by deed recorded in Volume 368, Page 154, of said Lamar County Real Property Records; North 01 01' 03" East a distance of 27918 ft. to an iron pin (1) for corner at the Northwest corner of said 7.4988 acre tract, said point being the Northeast corner of said 0.%3 acre tract, said point being In the South Boundary line of a called 10.25 acre tract of land owned by the EXHIBIT �.'t 0 Bk VO1 F9 0005222a OR 1933 218 First Christian Church; THENCE South g9° 07' 27" East a distance of 35857 ft. to an iron pin (1) for corner at the Northeast comer of said 7.4988 acre tract, said point being the Southeast corner of said 10.25 acre tract, said point also being in the West Boundary tine of a called 10.083 acre tract of land conveyed Russell Gifford by deed recorded in Volume 315, Page 5, of said Real Property Records; THENCE South 00 28' 15" West a distance of 850.82 ft. to an iron pin (f) for corner at the Southeast comer of said 7.4988 acre tract, said point being the Southwest corner of a called 10.083 acre tract of land conveyed The Christ and Elizabeth Pshipoda Foundation by deed recorded in Volume 639, Page 893, of said Lamar County Deed Records; THENCE South 99137' 17" West along the North Boundary line of E. Cherry St. a distance of 378.59 ft to the place of beginning and containing 7.50 acres (326686.4 sq. ft.) of land, more or less. TRACT H: AD that certain tract or parcel of land situated within the Corporate Limits of the City of Paris, County of Lamar, and State of Texas, a part of the ASA JARMAN SURVEY, ABSTRACT NO. 479, and being a called 21.09 acre tract of land conveyed Ashburn Hunter Bywaters, Jr., and John Kelly Bywaters by deed recorded in Volume 55, Page 245, of the Real Property Records of said County and State, described as follows, to -wit; BEGINNING at an iron pin (frs) for corner at the Southeast corner of said 21.09 acre tract, said point being the Northerly Northeast corner of a 20.40 acre tract of land conveyed J. R. Lane by deed recorded in Volume 308, Page 265, of said Records; THENCE North 0° 23' 33" East along the West Boundary line of 15th SW a distance of 703.8 ft. to an iron pin (s) for corner at the Northeast corner of said 21.09 acre tract; THENCE South 880 26' 16" West along the South Boundary line of W. Sherman St. a distance of 132439 ft. to an iron pin (s) for comer at the Northwest corner of said 21.09 acre tract; THENCE along the East Boundary line of 19th SW/Farm Road 137 as follows: Southerly around a curve (R= 577958, C South 0° 26'36" West 126.84 ft.) to the right a distance of 126.84 ft. to an iron pin (s); South 1° 04' 19" West a distance of 531.97 ft. to an iron pin (s) for corner at the Southwest corner of said 21.09 acre tract and the Northwest corner of said 20.40 acre tract; THENCE South 89" 36' 50" East along a fence a distance of 1330.04 ft. to the place of beginning and containing 20.741 acres of land, more or less. Reservations from and Exceptions to Conveyance and Warranty: 1. Any easements shown of record in the office of the County Clerk of Red River County, Texas. 2. There is hereby excepted from this conveyance only such royalty interests and/or interests in the oil, gas and other minerals as have heretofore been reserved or conveyed or that do not belong to the grantor herein. 3. Any restrictive covenants affecting the herein described property. Grantor, for the consideration and subject to the reservations from and exceptions to conveyance and warranty, grants, sells, and conveys to Grantee the property, together with all and singular the rights and appurtenances thereto in any wise belonging, to have and hold it to Grantee, Grantee's heirs, executors, administrators, successors, or assigns forever. Grantor binds Grantor and Grantor's heirs, executors, administrators, and successors to warrant and forever defend all and singular the property to Grantee and Grantee's heirs, executors, administrators, successors, and assigns against every person whomsoever lawfully claiming or to claim the same or any part thereof, except as to the reservations from and exceptions to conveyance and warranty. - The above described two tracts of land are conveyed by Grantor to Grantees in their present ( "as is ") condition ("with all faults "), and Grantees acknowledges that they are not relying upon any representation, statement or other assertion by Grantor with respect to the property condition, but Grantees are relying upon their examination of property. When the context requires, singular nouns and pronounsXclude tD f plural. ilEf for Record in: Laaar County Oa: Aus 3Ox2007 at 0E:3EA As a Recordinss Oowaent Humber: 0005222E Aaounts 24.00 Receipt Nuaher - 42579 Sderian axon N 00052228 OR 1933 219 ACKNOWLEDGMENT STATE OF TEXAS COUNTY OF RED RIVER This instrument was acknowledged before me on the 4VJday of August, 2007, by Joe B. Grizzle. 1 I _ Notary Public, State of Texas j FS-1MARIE HUTCHISON Notary Public STATE OF TEXAS g My Comm. Exp. 03!2772008 AFTER RECORDING RETURN TO: PREPARED IN THE LAW OFFICE OF: Grantee Gooding & Gooding Attorneys at Law 228 North Walnut nl..�l.....:n.. V ?GAIX 1829 nPROMULGATED BY THE TEXAS REAL ESTATE COMMISSION (TREC) 4 -28 -2014 EQUAL IW6 UNIMPROVED PROPERTY CONTRACT NOTICE: Not For Use For Condominium Transactions 1. PARTIES• The parties to this contract are Neal Wall and Vivia Wall, husband and wife (Seller) and The City of Paris. Texas. Trustee (Buyer). Seller agrees to sell and convey to Buyer and Buyer agrees to buy from Seller the Property defined below. 2. PROPERTY: Lot 1 , Block 308 City of Paris Addition, City of Paris , County of Lamar Texas, known as Lamar CAD Property ID No. 18639, 20.741 acres (address /zip code), or as described on attached exhibit together with all rights, privileges and appurtenances pertaining thereto, including but not limited to: water rights, claims, permits, strips and gores, easements, and cooperative or association memberships (the Property). 3. SALES PRICE: A. Cash portion of Sales Price payable by Buyer at closing ............ $ See Section 11 ............. B. Sum of all financing described below (excluding any loan funding 0.00 fee or mortgage insurance premium) ........................ ............................... $ C. Sales Price (Sum of A and B) ................................... ............................... $ See Section 11 4. FINANCING (Not for use with reverse mortgage financing): The portion of Sales Price not payable in cash will be paid as follows: (Check applicable boxes below) ❑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) (including, but not limited to appraisal, insurability and lender required repairs), Buyer may terminate this contract by giving notice to Seller prior to closing and the earnest money will be refunded to Buyer. L2) Credit Approval: (Check one box only) CCJJ (a) This contract is subject to Buyer being approved for the financing described in the attached Third Party Financing Addendum for Credit Approval. ❑ (b) This contract is not subject to Buyer being approved for financing and does not involve FHA or VA financing. ❑ B. ASSUMPTION: The assumption of the unpaid principal balance of one or more promissory notes described in the attached TREC Loan Assumption Addendum. ❑ C. SELLER FINANCING: A promissory note from Buyer to Seller of $ , 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. S. EARNEST MONEY: Upon execution of contract by all parties, Buyer shall deposit $ 0.00 as earnest money with Mr. Tracy A. Pounders, Attorney and Counselor at Law , as escrow agent, at Knox Central Place Suite 200, 4627 N. Central Expy., Suite 200, Dallas TX 75205 (address). Buyer shall deposit additional earnest money of $ Ono with escrow agent within 0 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 POLICY: Seller shall furnish to Buyer at ❑Seller's 6Buyer's expense an owner's policy of title insurance (Title Policy) issued by to be selected by Buyer at Buyer's sole option (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 i area or boundary lines, encroachments or protrusions, or overlapping improvements: LJ (i) will not be amended or delete1 from the title policy; ❑(ii) will be amended to read, "shortages in area" at the expense of LJBuyer ❑Seller. Initialed for identification by Buyer and Seller TREC NO. 9 -11 EXHIBIT �r ri Contract Concerning Lamar CAD PIDN 18639 Lot 1 Block 308 City of Paris, 20.741 acres Page 2 of 8 4 -28 -2014 (Address of Property) 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 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 3 days before the Closing bate whichever is earlier. If, due to factors beyond Seller's control, the Commitment and Exception bocuments are not delivered within the time required, Buyer may terminate this contract and the earnest money will be refunded to Buyer. C. SURVEY: The survey must be made b a registered professional land surveyor acceptable to the Title Company and Buyer's lender(s). Check one box only) L1 (1) Within 30 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 (T -47 Affidavit). If Seller fails to furnish the existing survey or affidavit within the time prescribed, Buyer shall obtain a new survey at Seller s expense no later than 3 days prior to Closing Date. If the existing survey or affidavit is of accep ble to Title Company or Buyer's lender(s), Buyer shall obtain a new survey at d Seller's Buyer's expense no later than 3 days prior to Closing Date. ❑ (2) Within days after the effective date of this contract, Buyer shall obtain a new survey at Buyer's expense. Buyer is deemed to receive the survey on the date of actual receipt or the date specified in this paragraph whichever is earlier. ❑ (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 (i) defects, exceptions, or encumbrances to title: disclosed on the survey other than items 6A(1) through (7) above; or disclosed in the Commitment other than items 6A(1) through (8) above; (iii) any portion of the Property lying in a special flood hazard area (Zone V or A) as shown on the current Federal Emergency Management Agency map; or (iii) any exceptions which prohibit the following use or activity: Buyer must object the earlier of (i) the Closing Date or (ii) days after Buyer receives the Commitment, Exception Documents, and the survey. 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) MEMBERSHIP IN PROPERTY OWNERS ASSOCIATION(S): The Property ❑is Mis not subject to mandatory membership in a property owners association(s). If the Property is subject to mandatory membership in a property owners association(s), Seller notifies Buyer under §5.012, Texas Property Code, that, as a purchaser of property in the residential community identified in Paragraph 2 in which the Property is located, you are obligated to be a member of the property owners association(s). Restrictive covenants governing the use and occupancy of the Property and all dedicatory instruments 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 instruments may be obtained from the county clerk. Thas Toreciosurc W1 LIM r �� Section 207.003, Property Code, entitles an owner to receive copies of any document that governs the establishment, maintenance, or operation of a subdivision, including, but not limited to, restrictions, bylaws, rules and regulations, and a resale certificate from a property owners' association. A resale certificate contains information including, but not limited to, statements specifying the amount and frequency of regular assessments and the style and cause number of lawsuits to which the property owners' association is a party, other than lawsuits relating to unpaid ad valorem taxes of an individual member of the association. These documents must be made available to you by the property owners' association or the association's agent on your request. If Buyer is concerned about these matters, the TREC promulgated Addendum for Initialed for identification by Buyer and Seller i Ktl. NV. 7 -11 Contract Concerning Lamar CAD PIDN 18639, Lot 1 Block 308 City of Paris, 20.741 acres Page 3 of 8 4 -28 -2014 (Address of Property) Property Subject to Mandatory Membership in a Property Owners Association should be used. (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, §33.135, Texas Natural Resources Code, requires a notice regarding coastal area propperty 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 §5.011, 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. (6) PROPERTY LOCATED IN A CERTIFICATED SERVICE AREA OF A UTILITY 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 Seller 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. (8) TEXAS AGRICULTURAL DEVELOPMENT DISTRICT: The Property ❑ is ® is not located in a Texas Agricultural Development District. For additional information, contact the Texas Department of Agriculture. (9) TRANSFER FEES: If the Property is subject to a private transfer fee obligation, §5.205, Property Code requires Seller to notify Buyer as follows: The private transfer fee obligation may be governed by Chapter 5, Subchapter G of the Texas Property Code. (10) PROPANE GAS SYSTEM SERVICE AREA: If the Propert y is located in a propane gas system service area owned by a distribution system retailer, Seller must give Buyer written notice as required by §141.010 Texas Utilities Code. An addendum containing the notice approved by TREC or required by the parties should be used. 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 at Seller's expense shall immediately cause existing utilities to be turned on and shall keep the utilities on during the time this contract is in effect. NOTICE: Buyer should determine the availability of utilities to the Property suitable to satisfy Buyer's needs. B. ACCEPTANCE OF PROPERTY CONDITION: "As Is" means the present condition of the Property with any and all defects and without warranty except for the warranties of title and the warranties in this contract. Buyer's agreement to accept the Property As Is under Paragraph 7B (1) or (2) does not preclude Buyer from inspecting the Property under Paragraph 7A, from negotiating repairs or treatments in a subsequent amendment, or from terminating this contract during the Option Period, if any. C fCheck one box only) 1) Buyer accepts the Property As Is. ❑ (2) Buyer accepts the Property As Is provided Seller, at Seller's expense, shall complete the Initialed for identification by Buyer and Seller TREC NO. 9 -11 Contract Concerning Lamar CAD PIDN 18639 Lot 1 Block 308 City of Paris, 20.741 acres Page 4 of 8 4 -28 -2014 (Address of Property) following specific repairs and treatments: (Do not insert general phrases, such as "subject to inspections" that do not identify specific repairs and treatments.) C.COMPLETION OF REPAIRS: Unless otherwise agreed in writin • (i) Seller shall complete all agreed repairs and treatments prior to the Closing Date; and (gi) al required permits must be obtained, and repairs and treatments must be performed by persons who are licensed to provide such repairs or treatments or, if no license is required by law, are commercially engaged in the trade of providing such repairs or treatments. At Buyers election, any transferable warranties received by Seller with respect to the repairs and treatments will be transferred to Buyyer at Buyer's expense. If Seller fails to complete any agreed repairs and treatments prior to the Closing Date Buyer may exercise for Seller remedies under gre l repairs and extend the Closing Date up o 5 days, if necessary, P P treatments. D.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. E.SELLER'S DISCLOSURES: 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 that materially and adversely affect the Property; (4) any dumpsite, landfill, or underground tanks or containers now or previously located on the Property; (5) 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. S. BROKERS' FEES: All obligations of the parties for payment of brokers' fees are contained in separate written agreements. 9. CLOSING: September 30 20 14 or within 7 days A. The closing of the sale will be on or before P y after objections made under Paragraph 6D 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: (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) Bu�er shall pay the Sales Price in good funds acceptable to the escrow agent. 3 Se Per and Buyer shall execute and deliver any notices, statements, certificates, affidavits, releases, loan documents and other documents reasonably required for the closing of the sale and the issuance of the Title Policy. (4) There will be no liens, assessments, or security interests against the Property which will not be satisfied out of the sales proceeds unless securing the payment of any loans assumed by Buyer and assumed loans will not be in default. 10.POSSESSION: A. Buyer's Possession: Seller shall deliver to Buyer possession of the Property in its present or required condition upon closing and funding. B. Leases: (1) After the Effective Date Seller may not execute any lease including but not limited to mineral leases) or convey any interest in the Property without Buyer's written consent. (2) If the Property is subject to any lease to which Seller is a party, Seller shall deliver to Buyer copies of the lease(s and any move -in condition form signed by the tenant within 7 days after the Effective Da a of the contract. 11. SPECIAL PROVISIONS: (Insert only factual statements and business details applicable to the contra t addendum or prohibit licensees has beedndpromulgatedtby statements for business adaory use.) for which a This sale is a conveyance of real property made in lieu of paying taxes, subject to the terms of Texas Property Tax Code Section 31.061, and subject to the approval of the taxing units: Lamar County, City of Paris, Paris Independent School District, and Paris Junior College. This conveyance satisfies Seller's obligations with regard to the payment of property taxes on this property. Buyer shall pay all transaction costs, subject to appropriation. Buyer and Seller are not represented by brokers. Buyer's lawyer shall fill in the final date of acceptance following execution by all parties. Initialed for identification by Buyer and Seller 1 KCI. GNU. 7 -11 Contract Concerning Lamar CAD PIDN 18639, Lot 1 Block 308 City of Paris, 20.741 acres Page 5 of 8 4 -28 -2014 (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 $ NA to be applied in the following order: Buyer's Expenses which Buyer is prohibited rom paying by FHA, VA, Texas Veterans Land Board 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): Appraisal fees; loan application fees; adjusted origination charges; 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; loan 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 ins ection; underwriting fee; wire transfer fee; expenses incident to any loan- Private mortgage Insurance Premium (PMI), VA Loan Funding Fee, or FHA Mortgage fnsurance Premium (MIP) as required by the lender; and other expenses payable by Buyer under this contract. B. 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 Land Board or other governmental loan program regulations. 13. PRORATIONS AND ROLLBACK TAXES: A. PRORATIONS: Taxes for the current year, interest 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 shall pay taxes for the current year. B. ROLLBACK TAXES: If this sale or Buyer's use of the Property after closing results in the assessment of additional taxes, penalties or interest (Assessments) for periods prior to closing, the Assessments will be the obligation of Buyer. If Seller's change in use of the Property prior to closing or denial of a special use valuation on the Property claimed by Seller results in Assessments for periods prior to closing the Assessments will be the obligation of Seller. Obligations imposed by this paragraph will survive closing. 14. CASUALTY 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 ffor 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 Seller fails to comply with this contract, 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 bot( 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 will be submitted to a mutually acceptable mediation service or rovider. The parties to the mediation shall bear the mediation costs equally. This paragraph dpoes not preclude a party from seeking equitable relief from a court of competent jurisdiction. 17. ATTORNEY'S FEES: A Buyer, Seller Listing Broker, Other Broker, or escrow agent who prevails in any legal proceeding related to this contract is entitled to recover reasonable attorney's fees and all costs of such proceeding. 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. Initialed for identification by Buyer and Seller TREC NO. 9 -11 Contract Concerning Lamar CAD PIDN 18639, Lot 1 Block 308 City of Paris, 20.741 acres page 6 of 8 4 -28 -2014 (Address of Property) 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: (i) require a written release of liability of the escrow agent from all parties (ii) require payment of unpaid expenses incurred on behalf of a party, and (iii)) only deduct from the earnest money the amount of unpaid expenses incurred on behalf of fhe party receiving the earnest money. 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 part 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 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. 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 Iiquidated damages in an amount equal to the sum of: (i) three times the amount of the earnest money; the earnest money; (iii) reasonable attorney's fees; and (iv) all costs of suit. 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: All covenants, representations and warranties in this contract survive closing. If any representation of Seller in this contract is untrue on the Closing Date, Seller will be in default. Unless expressly prohibited by written agreement, Seller may continue to show the Property and receive, negotiate and accept back up offers. 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: Mr. Tracy A. Pounders, Attorney at Law 4627 N. Central Expy, Suite 200 Dallas TX 75205 Telephone: ( ) Telephone: ( 903) 669 -1700 Facsimile: ( ) Facsimile: ( 972) 332 -2573 E -mail: E -mail: tracy @pounderslaw.com 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): NONE ❑ Third Party Financing Addendum for Credit ❑ Addendum for Coastal Area Property Approval ❑ Environmental Assessment,, Threatened or ❑ Seller Financing Addendum Endangered Species and Wtands ❑ Addendum for Property Subject to Addendum Mandatory Membership in a Property ❑ Addendum for Property Located Seaward Owners Association of the Gulf Intracoastal Waterway ❑ Buyer's Temporary Residential Lease ❑ Addendum for Sale of Other Property by ❑ Seller's Temporary Residential Lease Buyer L3 Addendum for Reservation of Oil, Gas ❑ Addendum for Property in a Propane Gas and Other Minerals System Service Area ❑ Addendum for "Back -Up" Contract ❑ Other (list): Initialed for identification by Buyer and Seller TREC NO. 9 -11 Contract Concerning amar CAD PIDN 18639, Lot 1 Block 308 City of Paris, 20.741 acres 9 Page 7 of 8 4 -28 -2014 (Address of Property) 23. TERMINATION OPTION: For nominal consideration, the receipt of which is hereby acknowledged by Seller, and Buyer's agreement to pay Seller $ 0.00 (Option Fee) which Seller or Listing Broker must receive within 3 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 180 days after the effective date of this contract (Option Period). If no dollar amount is stated as the Option Fee or if Buyer fails to pay the Option Fee to Seller 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 Lawill will 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 BEFORE SIGNING: TREC rules prohibit real estate licensees from giving legal advice. READ THIS CONTRACT CAREFULLY. Buyer's Mr. Tracy A. Pounders Seller's Attorney is: The Pounders Law Firm, PLLC Attorney is: Knox Central Place Suite 200 4627 N. Central Expy. nallas TX 71M.S Telephone: ( 903 ) 669 -1700 Facsimile: (972) 332 -2573 E -mail: tracy @pounderslaw.com Telephone: Facsimile: ( ) E -mail: EXECUTED the day of , 20 (EFFECTIVE DATE). (BROKER: FILL IN THE DATE OF FINAL ACCEPTANCE.) Buyer City of Pans, TFustee by Mayor Tm— w L g r ATTEST City Secretary Seller Mr. Neal Wall Seller Mrs. Vivia Wall 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 Commission, P.O. Box 12188, Austin, TX 78711 -2188, (512) 936 -3000 (http: / /www.trec.texas.gov) TREC NO. 9 -11. This form replaces TREC NO. 9 -10. TREC NO. 9 -11 Contract Concerning Lamar CAD PIDN 18639, Lot 1 Block 308 City of Paris, 20.741 acres page 8 of 8 4 -28 -2014 (Address of Property) BROKER INFORMATION (Print name(s) only. Do not sign) NA NA Other Broker Firm License No. Listing Broker Firm License No. represents ❑ Buyer only as Buyer's agent represents ❑ Seller and Buyer as an intermediary ❑ Seller as Listing Broker's subagent ❑ Seller only as Seller's agent Name of Associate's Licensed Supervisor Telephone Name of Associate's Licensed Supervisor Telephone Associate's Name Telephone Listing Associate's Name Telephone Other Broker's Address Facsimile Listing Broker's Office Address Facsimile City State Zip City State Zip Associate's Email Address Listing Associate's Email Address Selling Associate's Name Telephone Name of Selling Associate's Licensed Supervisor Telephone Selling Associate's Office Address Facsimile City State Zip Selling Associate's Email Address Listing Broker has agreed to pay Other Broker of the total sales price when the Listing Broker's fee I is received. Escrow agent is authorized and directed to pay other Broker from Listing Broker's fee at closing. OPTION FEE RECEIPT Receipt of $ (Option Fee) in the form of Seller or Listing Broker Receipt of ❑Contract and is acknowledged. Escrow Agent: By: Address City Date CONTRACT AND EARNEST MONEY RECEIPT Earnest Money in the form of Date: State Email Address Telephone ( ) _ Facsimile: ( ) Zip is acknowledged. TREC NO. 9 -11