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062215 EDA
CITY OF NEW HOPE EDA MEETING VV a City Hall, 4401 Xylon Avenue North June 22, 2015 EDA Meeting will commence upon adjournment of the City Council Meeting President Kathi Hemken Commissioner John Elder Commissioner Andy Hoffe Commissioner Eric Lammle Commissioner Jonathan London Call to order— EDA Meeting of June 22, 2015 2. Roll call 3. Approval of Minutes: • May 26, 2015 • June 8, 2015 4. Resolution approving purchase agreement for the acquisition of 4415 Nevada Avenue North (project no. 965) 5. Adjournment CITY OF NEW HOPE 4401 XYLON AVENUE NORTH NEW HOPE, MINNESOTA 55428 EDA Minutes May 26, 2015 Regular Meeting City Hall CALL TO ORDER President Hemken called the meeting of the Economic Development Authority to order at 8:48 p.m. ROLL CALL Present: Kathi Hernken, President John Elder, Commissioner Andy Hoffe, Commissioner Eric Lammle, Commissioner Jonathan London, Commissioner Staff Present: Kirk McDonald, City Manager Jeff Alger, Community Development Assistant Aaron Chirpich, Community Development Specialist Tim Fournier, Director of Police Rich Johnson, Director of HR/Admin. Services Valerie Leone, City Clerk Chris Long, City Engineer Bob Paschke, Director of Public Works Jeff Sargent, Director of Community Development Steve Sondrall, City Attorney Stacy Woods, Assistant City Attorney APPROVE MINUTES Motion was made by Commissioner Hoffe, seconded by Commissioner London, to approve the regular meeting minutes of April 27, 2015. All present voted in favor. Motion carried. IMP. PROJECT 964 President Hemken introduced for discussion EDA Item 4, Resolution Item 4 approving contract with the Braun Intertec Corporation for geotechnical services on the EDA owned site at 8400 Bass Lake Road (project no. 964). Mr. Aaron Chirpich, community development specialist, stated the resolution approves a contract with Braun Intertec Corporation for $9,490 for soil borings and geotechnical analysis of the redevelopment site at 8400 Bass Lake Road. He noted at the May 18 work session the majority of the Council agreed that further soil exploration would aid in developing the property. He stated the contract would be funded by EDA funds. Commissioner Hoffe inquired of the depth of the borings_ Mr. Chirpich stated they would range from 25' to 30'. Commissioner London noted the likelihood of a developer performing their own borings. City Engineer Chris Long noted the prior borings had boring logs with no EDA Meeting Page 1 May 26, 2015 analysis. He stated the data was not defined well enough to determine the water level. Commissioner EIder noted the city's recent land sale to a developer and after poor soils were discovered a re -negotiation was necessary. He cautioned against repeating such action. RESOLUTION 2015-06 Commissioner Lammle introduced the following resolution and moved its Item 4 adoption "RESOLUTION APPROVING CONTRACT WITH THE BRAUN INTERTEC CORPORATION FOR GEOTECHNICAL SERVICES ON THE EDA OWNED SITE AT 8400 BASS LAKE ROAD (PROJECT NO. 964)." The motion for the adoption of the foregoing resolution was seconded by Commissioner Hoffe, and upon vote being taken thereon, the following voted in favor thereof: Hemken, Elder, Hoffe, Lammle; and the following voted against the same: London; Abstained: None; Absent: None, whereupon the resolution was declared duly passed and adopted, signed by the president which was attested to by the executive director. ADJOURNMENT Motion was made by Commissioner London, seconded by Commissioner Lammle, to adjourn the meeting. All present voted in favor. Motion carried. The New Hope EDA adjourned at 9:00 p.m. Respectfully submitted, Valerie Leone, City Clerk EDA Meeting Page 2 May 25, 2015 CITY OF NEW HOPE 4401 XYLON AVENUE NORTH NEW HOPE, MINNESOTA 55428 EDA Minutes June 8, 2015 Regular Meeting City Hall CALL TO ORDER President Hemken called the meeting of the Economic Development Authority to order at 7:26 p.m. ROLL CALL Present: Kathi Hemken, President John Elder, Commissioner Andy Hoffe, Commissioner Eric Lammle, Commissioner Jonathan London, Commissioner Staff Present: Tim Fournier, Director of Police Valerie Leone, City Cleric Chris Long, City Engineer Jeff Sargent, Director of Community Development Steve Sondrall, City Attorney Stacy Woods, Assistant City Attorney IMP. PROJECT 893 President Hemken introduced for discussion EDA Item 3, Resolution Item 3 Authorizing the Execution of a First Amendment to Easements with Covenants and Restrictions Affecting Land (improvement project #893). Mr. Jeff Sargent, community development director, stated the requested action is to amend the ECR (Easements with Covenants and Restrictions Affecting Land) of the Development Agreement between the EDA and Hy - Vee, Inc. He stated the ECR outlines specific performance standards and uses throughout the development, which includes Lot 1 (Hy -Vee grocery store), Lot 2 (Hy -Vee convenience store and gas) and Lot 3 (a potential user of the land). He stated North Memorial is interested in constructing a clinic on Lot 3. Mr. Sargent stated the proposed amendment to the ECR outlines maintenance and snow removal responsibilities for Lot 3 (North Memorial) as they relate to the operations of Hy -Vee. He noted the proposed amendment does not directly involve the city in any capacity, as it focuses solely on maintenance relationships between Lots 3 and 1. He stated the EDA is charged with approving the amendment because the ECR is a Schedule to the Development Agreement between the EDA and Hy -Vee, Inc. Commissioner London questioned why North Memorial is not a signer of the document. Mr. Sargent stated North Memorial will be leasing the property from Hy -Vee, and as the user of Lot 3 North Memorial will bear some maintenance responsibilities. RESOLUTION 2015-07 Commissioner Elder introduced the following resolution and moved its Item 3 adoption "RESOLUTION AUTHORIZING THE EXECUTION OF A FIRST EDA Meeting Page 1 June 8, 2015 AMENDMENT TO EASEMENTS WITH COVENANTS AND RESTRICTIONS AFFECTING LAND." The motion for the adoption of the foregoing resolution was seconded by Commissioner Lammle, and upon vote being taken thereon, the following voted in favor thereof: Hemken, Elder, Hoffe, Lammle, London; and the following voted against the same: None; Abstained: None; Absent: None, whereupon the resolution was declared duly passed and adopted, signed by the president which was attested to by the executive director. ADJOURNMENT Motion was made by Commissioner London, seconded by Commissioner Hoffe, to adjourn the meeting. All present voted in favor. Motion carried. The New Hope EDA adjourned at 7:35 p.m. Respectfully submitted, /Z�- 6eene' Valerie Leone, City Clerk EDA Meeting Page 2 June 8, 2015 EDA A Request for Action Originating Department Approved for Agenda Agenda Section Community Development June 22, 2015 EDA Item No. By: Aaron Chirpich, CD Specialist By: Kirk McDonald, City Manager 4 Jeff Sargent, CD Director Resolution approving Purchase Agreement for the acquisition of 4415 Nevada Avenue North (project no. 965) Requested Action Staff requests the Council authorize entering into a Purchase Agreement for the acquisition of 4415 Nevada Avenue North for $67,600 or up to a maximum of $75,000 in the event that multiple offers are presented. Staff discussed the potential acquisition of this property at recent work sessions and the Council was supportive of acquiring the single family home for demolition. Policy/Past Practice In the past the city has successfully acquired distressed or functionally obsolete properties as part of the City's scattered site housing program. Background The City Council has directed community development staff to actively pursue the acquisition of distressed or functionally obsolete single family homes as part of the city's scattered site housing program. In the past twelve months the city has acquired three vacant single family homes as part of this program, 6059 West Broadway Ave N, 5431 Virginia Ave N, and 9121 62nd Avenue N. Both 6059 West Broadway Ave and 5431 Virginia Ave have been razed in preparation for the construction of new single family homes. 912162nd Ave is schedule to be burned to the ground as part of a West Metro Fire Department training exercise in mid August. Since the acquisition of these three units, staff has been researching and pursuing other available properties. This search has included properties for potential rehabilitation and/or demolition. 4415 Nevada Avenue North Staff has been watching this property for quite some time. The home has been vacant for many years and the City has received several complaints regarding the maintenance and condition of the property. Staff has been tracking the foreclosure proceedings and has been waiting for the home to be listed for sale. Finally, the home was listed for sale on June 151h, with an asking rice of $67,600. Motion by �4jyk-j Second by 091-/& To:2A�M teltol I:1RFA\COMM DEV\Deve10 ment\H \Q—R 4415 Nevada Ave acquisition 6-22-15 Request for Action June 22, 2015 Page 2 Staff would like to submit a full price offer immediately, as staff is concerned that the relatively low list price will cause the property to receive substantial attention. Staff wants to ensure that the home is not picked up by an investor with the intent of renting the unit. In the event that multiple offers are received on the property, staff is requesting flexibility to increase the City's purchase price offer to a maximum of $75,000. This site presents a special opportunity, as the property can be subdivided to create two buildable lots. Staff feels that the clear course of action with this property is demolition to facilitate the construction of two new homes. Such opportunities are rare in the City of New Hope and staff is excited for the chance to add two new units of housing to the City tax base. The property is currently zoned R-1 Single Family Residential. In order to subdivide the property, it would have to be re -zoned as the lot size is not sufficient to create two standard R-1 lots. Lot Topography The existing topography of the site presents some unique challenges in creating two buildable lots. The current home on the property sits on a fairly large hill located on the southern portion of the lot. Once the home is removed, it is likely that substantial regarding of the site will be necessary to accommodate two new homes. Staff wants to make the Council aware that the challenging topography may result in a lower sales price for the lots to account for the necessary soil corrections. Funding Staff recommends that funding for the acquisition of 4415 Nevada Ave North come from current EDA fund reserves. Staff recommends that funding for the demolition and site clearing come from the City's CDBG grant resources. CDBG related costs will be reimbursed by Hennepin County. The use of CDBG funding will not place income restrictions on the re -sale of the vacant lots. Staff has created full project budget(s) that can be found in the attachments. Recommendation Staff recommends the Council approve the attached resolution prepared by the City Attorney and terms of the attached purchase agreement for the acquisition of 4415 Nevada Avenue North. Attachments • Resolution w Project Budgets Sample Lot Layout * County Tax Information * Purchase Agreement CITY OF NEW HOPE ECONOMIC DEVELOPMENT AUTHORITY EDA RESOLUTION NO. 15 - RESOLUTION APPROVING PURCHASE AGREEMENT FOR THE ACQUISITION OF 4415 NEVADA AVENUE NORTH BE IT RESOLVED by the Economic Development Authority in and for the City of New Hope as follows: WHEREAS, on September 22, 2014 the City Council adopted Resolution No. 14-126 at the City Council meeting authorizing City community development staff to actively pursue the acquisition of distressed, functionally obsolete single family homes for potential purchase by the Economic Development Authority in and for the City of New Hope, as part of the City's scattered site housing program; and WHEREAS, the City Council has directed City statt to negotiate for the terms most favorable to the City, and the execution of purchase agreements so as to secure purchase rights for these real properties, contingent on the review and approval of the Economic Development Authority in and for the City of New Hope to the terms of the purchase agreements; and WHEREAS, New Hope City staff have identified the opportunity to purchase certain real property located at 4415 Nevada Avenue North, New Hope, MN and legally described as: The East 130 feet of Lots 26 and 27, Auditor's Subdivision Number 324, Hennepin County, Minnesota (the "Property") from The Bank of New York Mellon, formerly known as The Bank of New York, as successor -in -interest to JPMorgan Chase Bank, N.A., as Trustee for Bear Stearns Asset Backed Securities, Bear Stearns Alt -A Trust, Mortgage Pass -Through Certificates Series 2006-1; and WHEREAS, the Property is currently unoccupied; and WHEREAS, the house located on the Property was built in 1938 and has a functionally obsolete floor plan; and WHEREAS, City staff believes that the best use of the Property is demolition in order to maximize the tax base through splitting the Property into two separate lots and making them available for the development of two new residential housing units; and WHEREAS, the Property will be acquired using Economic Development Authority in a for the City of New Hope funds; and WHEREAS, it is in the best interest of the Economic Development Authority in and for the City of New Hope to purchase the Property from The Bank of New York Mellon, formerly known as The Bank of New York, as successor -in -interest to JPMorgan Chase Bank, N.A., as Trustee for Bear Stearns Asset Backed Securities, Bear Stearns Alt -A Trust, Mortgage Pass -Through Certificates Series 2006-1 for a maximum purchase price of $75,000.00, in order to redevelop the Property in accordance with the City's scattered site housing program and policy; WHEREAS, City staff will make an initial offer of $67,600.00 to purchase the Property, but the offer may need to be increased in the event of multiple offers, up to a maximum amount of $75,000.00; and WHEREAS, the City staff is hereby seeking approval from the Economic Development Authority in and for the City of New Hope of the Purchase Agreement, subject to the review and approval by the City Attorney of proper title evidence and other terms relating to the closing on the sale of the Property. NOW, THEREFORE, BE IT RESOLVED by the Economic Development Authority in and for the City of New Hope as follows: 1. That the above recitals are incorporated herein by reference. 2. It is in the best interest of the City to purchase the Property for redevelopment in accordance with the City's scattered site housing program and policy. 3. That the purchase of the Property by the Economic Development Authority in and for the City of New Hope from The Bank of New York Mellon, formerly known as The Bank of New York, as successor -in -interest to JPMorgan Chase Bank, N.A., as Trustee for Bear Stearns Asset Backed Securities, Bear Stearns Alt -A Trust, Mortgage Pass -Through Certificates Series 2006-1, for the sum of $67,600.00, or up to a maximum sum of $75,000.00 in the event multiple offers are on the Property, with other terms and conditions as set forth in the Purchase Agreement attached hereto as Exhibit A, is approved subject to the review and approval by the City Attorney of proper title evidence and other terms relating to the closing on the sale of the Property. 4. That the payment of $6,760 earnest money to the listing agent, Property Advisors Realty LLC, to be held in listing agent's trust account pending closing as set forth in the Purchase Agreement is approved. Said earnest money shall be applicable to the purchase price of the Property. 5. The City shall use due diligence for correcting the Property's blighted condition and conducting any necessary environmental cleanup of the Property to pursue this redevelopment purpose and return the Property to the tax rolls for the benefit of all taxing jurisdictions. 6. The President and Executive Director and the New Hope City staff are authorized and directed to sign all appropriate documents, and to take whatever additional Attest: actions are necessary or desirable, to complete the purchase of the Property in accordance with the Purchase Agreement. Dated the __ day of June, 2015. Kirk McDonald, Executive Director Kathi Hemken, President P:\Attorney\SAS11 Client Filesl2 City of New Hope199-11369 - 441S Nevada Ave. N\Resolution Approving Purchase of 4415 Nevada Avenue North.docx City of New Hope-- Scattered Site Housing Program Total Project Cost and Total Funding Sources 4415 Nevada Ave North New Hope MN, 65428 USES Amount Acquisition 67,600 Demolition 14,000 Demolition Option Real Estate Taxes 1,650 Contingency 5,000 Current Property Tax $1,633 "total" Insurance 1,100 Lot Split Survey 2,000 Estimated Annual Taxes (2 houses) $8,600 Closing, Recording Fees 1,500 "based on a value of $250,000 for each unit" Legal 2,500 Abatement 3,500 $2,866 per year tax revenue for the city Demolition Survey 650 Tree Removal 4,000 Well Abandonment/Sealing 1,000 Utilities 5,500 Site Grading 7,000 Total 117,000 SOURCES Amount EDA 110,000 CDBG 7,000 Total 117,000 Anticipated Sales Price "2 vacant lots" 110,000 City of New Hope-- Scattered Site Housing Program Total Project Cost and Total Funding Sources USES Amount Acquisition 75,000 Demolition 14,000 Real Estate Taxes 1,650 Contingency 5,000 Insurance 1,100 Lot Split Survey 2,000 Closing, Recording Fees 1,500 Legal 2,500 Abatement 3,500 Demolition Survey 650 Tree Removal 4,000 Well Abandonment/Seaiing 1,000 Utilities 5,500 Site Grading 7,000 Total 124,400 SOURCES Amount EDA 110,000 CDBG 14,400 Total 124,400 Anticipated Sales Price "2 vacant lots" 110,000 4495 Nevada Ave North New Hope MN, 55428 Demolition Option Current Property Tax $1,633 "total" Estimated Annual Taxes (2 houses) $8,600 "based on a value of $250,000 for each unit" $2,866 per year tax revenue for the city Hennepin County GIS - Printable Map Page 1 of 1 Parcel Map Scale: 1" 50 ft. !+! E 17-118-21-21-0019 A -T -B: Abstract ID: Print Date: 6/17/2015 4y ner Reed Olson & Diane Olson Market $46,000 Parcel 4415 Nevada Ave N Tax $1,633.12 Address: 3 New Hope, MN 55428 Total: (Payable: 2015) i Property Seasonal -Residential Rec sale $145,000 Type: Price: This map is a compilation of data from various i sources and is furnished "AS IS" with no Home- Non -Homestead Sale 1112005 representation or warranty expressed or Stead: Date: implied, including fitness of any particular I purpose, merchantability, or the accuracy and ! completeness of the information shown. Parcel 0.39 acres Sale CCPYRIGHX O HENNEPIN COUNTY 2015 Area: 16,841 Sq ft Code:' _ A fbt*+Gnew ___..._.._.� http://gis.hennepin.us/Property/print/default.aspx?C=470607.8194500003,4986973.929700..- 6/17/2015 Purchase Agreement instructions READ CAREFULLY The Seller requires that all offers be presented with the forms attached. This instructions page is provided by the listing agent to assist you in completing the offer and is not a part of the purchase agreement. EXTREMELY IMPORTANT — IF FINANCING IS INVOLVED, FIND OUT HOW THE LENDER REQUIRES THE BUYER'S NAME TO BE ON THE LOAN - AN AMENDMENT CANNOT BE USED TO CHANGE A NAME. « Earnest Money: The seller normally requires earnest money of at least $1000.00 or 10% if cash. Seller will counter if they require more. Earnest money must be in the form of a cashiers check, however during offer negotiations a copy of a personal check is acceptable. Once an offer is accepted a cashier's check must be in our office within 24 hours. Ask Listing /Agent where to deliver the check **Do not submit an offer unless you are sure the buyer(s) is qualified and can perform" + NO Contingent Offers: No offer; contingent upon sale of another property will be considered. PERSONAL PROPERTY: Because the seller acquired this property through a foreclosure they do not own any of the personal property (stove, refrigerator, water softener, propane tank, etc.). TheEpIgIM personal property will not be included in the Contract. Do not include a personal property addendum. PAYMENT OF PURCHASE PRICE: The owner will consider the following financing terms. These terms are Subject to change without notice: CASH or New Financing — See MLS Info. • Cash Offers: Verification of funds must accompany the offer: I.E.: a copy of bank statement or letter from Buyer's banker stating buyer has specific dollar on deposit sufficient to cover purchase price G Financing offers: Pre approval leiter must accompany the offer. It must specifically state the following: 1. Property address 2. Loan amount 3. A statement that the loan officer has reviewed the buyers credit report 4. A statement that the final approval is subject only to appraisal and tme work. 5. A statement that the loan officer has reviewed bank statement for fund verification. 6. The sale is not subject to the sale or closing of any other Real Estate The purchase agreement should reflect the buyers actual financing terms, changes to financing after an accepted offer may be refused by the seller. * Be sure to include a fully executed Lead Based Paint addendum, condoltownhome addenda if needed. • Closing dates: Cash offers are expected to close within 15-30 days. Financed offers are expected to close within 30-45 days. Do not ask for longer closing times. They will be rejected. • Please indicate on the offer worksheet if the buyer is an owner occupant or an investor. Certain Sellers consider Owner Occupant or NSP (Neighborhood Stabilization Program) offers only during the first 15 days on MLS. Investor offers will be considered after 15 days if the property is still available. Sellers may require the property to be listed 3 days before presenting an offer. No Assignments: Buyer may not assign the purchase agreement; make sure the name on the purchase agreement is exactly how the buyer will take title. The name of the purchaser stated on the Purchase agreement MUST be the person taking title. y Title and Closing: Seller works closely with certain escrow companies, title companies, title agents, title attorneys and other closing agents. They are familiar with Seller's forms, documents, procedures. While Buyer will not be required to use any title insurer or closing agent chosen by Seller, Seller may limit or condition its agreement to pay title insurance and closing related costs charged by a title insurer and/or closing agent chosen by Buyer. Title: Title to this property will be conveyed by means of a Limited or Special Warranty Deed. 4 POSSESSION: Keys available will be. given to the buyer at closing allowing access to the property. Seller will not provide any other keys, garage door openers or other items not specified in the agreement. For their own security Buyers are required to change the locks immediately after closing. At no time shall possession be given for any reason prior to a successful closing. t NO WARRANTIES OR REPRESENTATION -'AS IS' SALE: The owner has no knowledge of the condition of this property. The buyer must rely solely upon personal inspection with respect to the current condition of the property. This property is being sold "AS IS". The owner will make no warranties. All repairs must be negotiated in writing. Sellers may not approve repairs. " Inspections. Most Sellers allow a period of time after acceptance of offer to have the property inspected. The time allowed for the inspection will be specified in the contract. The Buyer has the right to terminate the agreement IN WRITING for any reason within this time period. If the Buyer fails to terminate the offer IN WRITING within the time allowed it shall be deemed as acceptance of the physical condition of the property. If the property Is winterized and your buyers chooses to do an inspection. De-winteriling and turning on winterizing. De -winterization of the property must be negotiated at the time of the offer; properties will be re - winterized during the months of October thru April. Please schedule the inspection with the listing agent A minimum of 48 hours notice is required for de -winterizing. Selling agent and buyers may be required to meet the utility companies at the property. We may not be able or permitted to tum on utilities on all properties. De - winterization is only possible in homes with working heat and plumbing. + LITILMES: Seller will not reconnect nor reactivate utilities for dosing. Any reconnection fees are the responsibility of the Buyer. Buyers are advised to contact the municipality's water department to determine the amount of any reconnection fees. Any water meter deposits, meter tampering fees and stop box repairs are assumed by the buyer. t ESSENCE: This must close -on time or Buyer will maybe required to a per diem penalty of $100 or more see seller counter offer addenda. Presentation of offers: To present an offer refer to the Agent Remarks in MLS. Include a copy of the earnest money check along with pre -approval letter / proof of funds. PLEASE BE PATIENT Patience is the key in buying bank owned property. We do our best to expedite this process but please prepare your buyer. Offers are presented during business hours Monday through Friday. The property will continue to be shown and offers reviewed until the purchase agreement Is signed by all parties. Please inform your buyers that response time can vary from 1 to 12 days or longer. All contracts are subject to corporate and/or PMI approval if applicable. In the case of any discrepancy between the attached Agreement and the Sellers Addendum the Sellers Addendum will Supersede the Agreement This page must be signed and returned with the Purchase Agreement. By doing so, you, the selling agent, agree that you and your buyer(s) have read and understand this Purchase Agreement. Please only use the MAR contract in the MLS supplements, additional addendums accepted are Lead Based Paint Addendum, Financing Addendum, and Condo/Townhome CIC Disclosure. Agent and buyer signatures: Agent Date: Buyer Date: Buyer Date: Offer Summary Sheet Must be included with all offers To submit an offer refer to agent remarks on MLS Oftrin Address ' y[" i ProJ� - �• �-tn� 1 �+ 5� Icy Buyer✓ - ECo�amx;cr Buyer Buyer phone# (for final utilities) _ � (p-3 S3 t Owner Occupant?_ Yes -No Buyer licensed agent? Yes >C No Buyer first -time -home -buyer? Yes X No NCST Buyer Yes No Earnest Money '� 0 + b -,Z) Closing date -7 -,31 IS- 0L, wv th. - 3; ou c Purchase price . 4r �e , ov. . _ -- Down payment %1 0V 07a Seller paid closing costs, Type of financing Pre -approval or proof of funds attached? A- Yes No Is offer subject to an inspection? Yes KNo Bonus: Is there a selling bonus stipulated on MLS? Yes X No (must be stipulated on PA to be valid) Inspections: Code Compliances - vacant building registration - city building code requirements: Agent to verify all city required work orders or violations: buyer(s) responsible for all city code building violations if applicable. Buyer and buyer agent to verify and accept building status as of date of closing. Utilities. On date of closing, buyer/buyers agent must call all utility companies and have utilities transferred Into buyer's name. Failure to do this will cause buyer to be responsible for all outstanding utility bills. Agent information: Agent name: -r 14-pLw �C Company name: _ R Ann!'% R fAf.3.eC' Company address (for commission check) 1�" 77M Agent office phone: —' S`3-1 - 2 lo-� Agent cell phone: ( t tl - 81 � - ?moi TO Agent fax: o 3 $--1'7 - 3S24 - Agent S24 - Agent email: 01 -- Loan Officer's email address k 4 Agent's Signature //l I /.._,.' Buyer's Signature Buyer's Signature Most offers ars submitted on a website and above contact infomation is commonly required in order to submit the offer. Offer response may vary from 1-7 days. Please include in your signed contract a copy of the earnest money, pre -approval letter or proof of funds, lead based paint addendum and condohownhouse addendum if needed, financing addendum if applicable, signed city inspecUon&uth-in- housing, signed responsibility agreement for city inspection report, articles on inc for all corporate investment offers. NOTE: Please have buyers name on contract in which buyer will take title. PURCHASE AGREEMENT This form approved by the Minnesota Association of REALTORS®, which disclaims any liability arising out of use or misuse of this form. ®2014 Minnesota Association of REALTORS®, Edina, MN 1. Date -- .. 6/16/2015 2. Pagel of 13 3. BUYER (S): City of New Hope BDA -- 4. 5. Buyer's earnest money in the amount of 6. six Thousand saves sundered Sixty Dollars ($ 6,760.00 ) 7. shall be delivered to listing broker no later than two (2) Business Days after Final Acceptance Date of this Purchase 8. Agreement. Buyer and Seller agree that listing broker shall deposit any earnest money in the listing brokers trust 9. account within three (3) Business Days of receipt of the earnest money or Final Acceptance Date of this Purchase 10. Agreement, whichever is later. 11. Said earnest money is part payment for the purchase of the property located at 12. Street Address: 4415 Nevada Avenue 0 13. City of Now Hope , County of 14. State of Minnesota, legally described as 15 AUDITOR"S SUED. NO. 324 E 130 FT OF LOTS 26 AND 27 16. 17. Said purchase shall include all improvements, fixtures, and appurtenances on the property, if any, including but not 18. limited to, the following (collectively the "Property"): garden bulbs, plants, shrubs, trees, and lawn watering system; 19. shed; storm sash, storm doors, screens and awnings; window shades, blinds; traverse, curtain, and drapery 20. rods, valances, drapes, curtains, window coverings and treatments; towel rods; attached lighting and bulbs; fan fixtures; 21. plumbing fixtures; garbage disposals; water softener; water treatment system; water heating systems, heating systems; 22. air exchange system; radon mitigation system; sump pump; TV antenna/cable TV jacks and wiring/TV wall mounts; 23. wall/ceiling-mounted speakers and mounts; carpeting; mirrors; garage door openers and all controls; smoke detectors; 24. fireplace screens, door and heatilators; BUILT-INS. dishwashers; refrigerators; wine/beverage refrigerators; trash 25, compactors; ovens; cook -top stoves; warming drawers; microwave ovens; hood fans; shelving; work benches; intercoms; 26. speakers; air conditioning equipment; electronic air filter; humidifier/dehumidffier; liquid fuel tanks (and controls); 27. pool/spa equipment; propane tank (and controls); security system equipment; TV satellite dish; AND the following 28. personal property shall be transferred with no additional monetary value, and free and clear of all liens and encumbrances: 29. 30. 31. Notwithstanding the foregoing, leased fixtures are not included. 32. Notwithstanding the foregoing, the following item(s) are excluded from the purchase: 33. 34. - 35. Seller has agreed to sell the Property to Buyer for the sum of ($ 67, 600.00 ) 36. sixty -Seven Thousand six Mmdred Dollars, 37. which Buyer agrees to pay in the following manner: 38. 1. CASH of 140 percent (%) of the sale price, or more in Buyer's sole discretion, which includes the earnest 39. money; PLUS 40. 2. FINANCING of 0 percent (%) of the sale price, which will be the total amount secured against this 41. Property to fund this purchase. 42. Such financing shall be (check one) ❑ a first mortgage; ❑ a contract for deed; or ❑ a first mortgage with 43. subordinate financing, as described in the attached Addendum: 44. ❑ Conventions! ❑ FNA ❑ DVA ❑ Assumption ❑ Contract for Deed ❑ Other: oris}----------_._______.___._..__---------------_---- 45. The date of closing shall be on or before 7/31-,20 15 MN:RA-1 (8/14) PURCHASE AGREEMENT 46. Page 2 Date 5/18/2015 47. Property located at 4415 Nevada Avenue N _ New Hope MN 55428 48. This Purchase Agreement ❑ IS *] IS NOT subject to an Addendum to Purchase Agreement: Sale of Buyer's Property 49. Contingency Contingency for sale of Buyer's property. (If answer is IS, see attached Addendum.) 50. (If answer is IS NOT, the closing of Buyer's property, if any, may still affect Buyer's ability to obtain financing, if financing 51. is applicable.) 52. This Purchase Agreement ❑ IS R IS NOT subject to cancellation of a previously written purchase agreement ale.} ---- 53. dated , 20 . (If answer is IS, said cancellation shall be obtained no later than 54. , 20 . If said cancellation is not obtained by said date, this Purchase Agreement 55. is canceled. Buyer and Seller shall immediately sign a Cancellation of Purchase Agreementconfirming said cancellation 56. and directing all earnest money paid hereunder to be refunded to Buyer.) 57. Buyer has been made aware of the availability of Property inspections. Buyer ❑ Elects ® Declines to have a 58. Property inspection performed at Buyer's expense. -- -- fheckone•} -_____ 59. This Purchase Agreement ❑ IS R IS NOT subject to an Addendum to Purchase Agreement: Inspection Contingency. 60. (If (If answer is IS, see attached Addendum.) 61. DEED/MARKETABLE TITLE: Upon performance by Buyer, Seller shall deliver a (check one): 62. ® Warranty Deed, ❑ Personal Representative's Deed, ❑ Contract for Deed, ❑ Trustee's Deed, or 63. ❑ Other: Deed joined in by spouse, if any, conveying marketable title, subject to 64. (a) building and zoning laws, ordinances, and state and federal regulations; 65. (b) restrictions relating to use or improvement of the Property without effective forfeiture provisions; 66. (c) reservation of any mineral rights by the State of Minnesota; 67. (d) utility and drainage easements which do not interfere with existing improvements; 68. (e) rights of tenants as follows (unless specified, not subject to tenancies): 69. _ _ ;and 70. (f) others (must be specified in writing): 71, 72. REAL ESTATE TAXES: Seller shall pay on the date of closing all real estate taxes due and payable in ail prior years 73. including all penalties and interest. 74. Buyer shall pay 0 PRORATED FROM DAY OF CLOSING ❑ 12tihs OF ❑ ALL ❑ NO real estate taxes due - - - --- - - ......... _.._.... . 75. and payable in the year 20 15 76. Seller shall pay © PRORATED TO DAY OF CLOSING ❑ 12ths OF ❑ ALL ❑ NO real estate taxes due and 77. payable in the year 20 15 If the closing date is changed, the real estate taxes paid shall, if prorated, be adjusted 78. to the new closing date. If the Property tax status is a part- or non -homestead classification in the year of closing, Seller 79. ❑ SHALL R SHALL NOT pay the difference between the homestead and non-homestead. 80. Buyer shall pay real estate taxes due and payable in the year following closing and thereafter, the paymernt of which 81. is not otherwise herein provided. No representations are made concerning the amount of subsequent real estate taxes. 82. DEFERRED TAXESISPECIAL ASSESSMENTS: 83. ❑ BUYER SHALL PAY ❑?C SELLER SHALL PAY on date of closing any deferred real estate taxes (e.g., Green 84. Acres) or special assessments, payment of which is required as a result of the closing of this sale. 85. ❑ BUYER AND SELLER SHALL PRORATE AS OF THE DATE OF CLOSING ® SELLER SHALL PAY ON 86. DATE OF CLOSING all installments of special assessments certified for payment, with the real estate taxes due and 87. payable in the year of closing. MN:PA-2 (8/14) Q PURCHASE AGREEMENT 88. Page 3 Date 6/18/3015 89. Property located at 4415 Nevada Avenue N - _ New Hope MN .. 55438 90. ❑ BUYER SHALL ASSUME © SELLER SHALL PAY on date of closing all other special assessments levied as 91. of the date of this Purchase Agreement. 92. ❑ BUYER SHALL ASSUME R] SELLER SHALL PROVIDE FOR PAYMENT OF special assessments pending as __-------------------------------.�_.�._.------(Chedr one.} ---------_.--_------------- 93. of the date of this Purchase Agreement for improvements that have been ordered by any assessing authorities. (Seller's 94. provision for payment shall be by payment into escrow of two (2) times the estimated amount of the assessments 95. or less, as required by Buyer's lender.) 96. Buyer shall pay any unpaid special assessments payable in the year following closing and thereafter, the payment of 97. which is not otherwise herein provided. 98. As of the date of this Purchase Agreement, Seller represents that Seller ❑ HAS 91 HAS NOT received a notice .--....--...(c►reak o��e.}--------- 99. regarding any new improvement project from any assessing authorities, the costs of which project may be assessed 100. against the Property. Any such notice received by Seller after the date of this Purchase Agreement and before closing 101. shall be provided to Buyer immediately. If such notice is issued after the date of this Purchase Agreement and on 102. or before the date of closing, then the parties may agree in writing, on or before the date of closing, to pay, provide 103. for the payment of or assume the special assessments. In the absence of such agreement, either party may declare 104. this Purchase Agreement canceled by written notice to the other party, or licensee representing or assisting the other 105. party, in which case this Purchase Agreement is canceled. If either party declares this Purchase Agreement canceled, 106. Buyer and Seller shall immediately sign a Cancellation of Purchase Agreement confirming said cancellation and 107. directing all earnest money paid hereunder to be refunded to Buyer. 108, POSSESSION: Seller shall deliver possession of the Property no later than imnediately after closing. 109. Seller agrees to remove ALL DEBRIS AND ALL PERSONAL, PROPERTY NOT INCLUDED HEREIN from the Property 110. by possession date. 111. PRORATIONS: All interest; unit owners' association dues; rents; and charges for city water, city sewer, electricity and 112. natural gas shall be prorated between the parties as of date of closing. Buyer shall pay Seller for remaining gallons of 113. fuel oil or liquid petroleum gas on the day of closing, at the rate of the last fill by Seller. 114. TITLE AND EXAMINATION: As quickly as reasonably possible after Final Acceptance Date of this Purchase Agreement: 115. (a) Seller shall surrender any abstract of title and a copy of any owner's title insurance policy for the Property, if 116. in Seller's possession or control, to Buyer or Buyer's designated title service provider; and 117. (b) Buyer shall obtain the title services determined necessary or desirable by Buyer or Buyer's lender, including 118. but not limited to title searches, title examinations, abstracting, a title insurance commitment or an attorney's 119. title opinion at Buyer's selection and cost and provide a copy to Seller. 120. Seller shall use Seller's best efforts to provide marketable title by the date of closing. Seller agrees to pay all costs 121. and fees necessary to convey marketable title including obtaining and recording all required documents, subject to the 122. following: 123. In the event Seller has not provided marketable title by the date of closing, Seller shall have an additional 30 days to 124. make title marketable, or in the alternative, Buyer may waive title defects by written notice to Seller. In addition to 125. the 30 -day extension, Buyer and Seller may, by mutual agreement, further extend the closing date. Lacking such 126. extension, either party may declare this Purchase Agreement canceled by written notice to the other party, or 127. licensee representing or assisting the other party, in which case this Purchase Agreement is canceled. If either 128. party declares this Purchase Agreement canceled, Buyer and Seller shall immediately sign a Cancellatron of. 129. Purchase Agreement confirming said cancellation and directing all earnest money paid hereunder to be refunded 130. to Buyer. 131. SUBDIVISION OF LAND, BOUNDARIES, AND ACCESS: If this sale constitutes or requires a subdivision of land 132. owned by Seller, Seller shall pay all subdivision expenses and obtain all necessary governmental approvals. Seller 133. warrants that the legal description of the real property to be conveyed has been or shall be approved for recording as 134. of the date of closing. Seller warrants that the buildings are or shall be constructed entirely within the boundary lines 135. of the Property. Seller warrants that there is a right of access to the Property from a public right-of-way. 136. MECHANIC'S LIENS: Seller warrants that prior to the closing, payment in full will have been made for all labor, materials, 137. machinery, fixtures or tools furnished within the 120 days immediately preceding the closing in connection with 138. construction, alteration or repair of any structure on, or improvement to, the Property. MN:PA3 (8114) 140. Property located at 4415 Nevada Avenue N PURCHASE AGREEMENT 139. Page 4 Date 6/19/2015 new Hope MN 55429 141. NOTICES: Seller warrants that Seller has not received any notice from any governmental authority as to condemnation 142, proceedings, or violation of any law, ordinance or regulation. If the Property is subject to restrictive covenants, Seller 143. warrants that Seller has not received any notice from any person or authority as to a breach of the covenants. Any 144. such notices received by Seller shall be provided to Buyer immediately. 145. DIMENSIONS: Buyer acknowledges any dimensions, square footage or acreage of land or improvements provided 146. by Seller, third party, or broker representing or assisting Seller are approximate. Buyer shall verify the accuracy of 147. information to Buyer's satisfaction, if material, at Buyer's sole cost and expense. 148. ACCESS AGREEMENT: Seller agrees to allow reasonable access to the Property for performance of any surreys or 149, inspections agreed to herein. 150. RISK OF LOSS: If there is any loss or damage to the Property between the date hereof and the date of closing for any 151. reason, in fire, vandalism, flood, earthquake or act of God, the risk of loss shall be on Seller. If the Property 152. is destroyed or substantially damaged before the closing date, this Purchase Agreement is canceled, at Buyer's option, 153. by written notice to Seller or licensee representing or assisting Seller. If Buyer cancels this Purchase Agreement, 154. Buyer and Seller shall immediately sign a Cancellation of Purchase Agreement confirming said cancellation and 155. directing all earnest money paid hereunder to be refunded to Buyer. 156. TIME OF ESSENCE; Time is of the essence in this Purchase Agreement. 157. CALCULATION OF DAYS: Any calculation of days begins on the first day (calendar or Business Days as specified) 158. following the occurrence of the event specified and includes subsequent days (calendar or Business Days as specified) 159. ending at 11:59 P.M. on the last day. 160. BUSINESS DAYS: "Business Days" are days which are not Saturdays, Sundays or state or federal holidays unless 161. stated elsewhere by the parties in writing. 162. RELEASE OF EARNEST MONEY: Buyer and Seller agree that the listing broker shall release earnest money from the 163. listing broker's trust account: 1) at or upon the successful closing of the Property; 2) pursuant to written agreement 164. between the parties, which may be reflected in a Cancellation of Purchase Agreement executed by both Buyer and 165. Seller; 3) upon receipt of an affidavit of a cancellation under MN Statute 559.217; or 4) upon receipt of a court order. 166. DEFAULT: If Buyer defaults in any of the agreements herein, Seller may cancel this Purchase Agreement, and any 167. payments made hereunder, including earnest money, shall be retained by Seller as liquidated damages and Buyer 168. and Seller shall affirm the same by a written cancellation agreement. 169. If Buyer defaults in any of the agreements hereunder, Seiler may terminate this Purchase Agreement under the 170. provisions of either MN Statute 559.21 or MN Statute 559.217, whichever is applicable. If either Buyer or Seller defaults 171. in any of the agreements hereunder or there exists an unfulfilled condition after the date specified for fulfillment, either 172. party may cancel this Purchase Agreement under MN Statute 559.217, Subd. 3. Whenever it is provided herein that 173. this Purchase Agreement is canceled, said language shall be deemed a provision authorizing a Declaratory Cancellation 174. under MN Statute 559.217, Subd. 4. 175. If this Purchase Agreement is not canceled or terminated as provided hereunder, Buyer or Seller may seek actual 176. damages for breach of this Purchase Agreement or specific performance of this Purchase Agreement; and, as to 177. specific performance, such action must be commenced within six (6) months after such right of action arises. 178. BUYER HAS THE RIGHT TO A WALK-THROUGH REVIEW OF THE PROPERTY PRIOR TO CLOSING TO 179. ESTABLISH THAT THE PROPERTY IS IN SUBSTANTIALLY THE SAME CONDITION AS OF THE DATE OF 180. THIS PURCHASE AGREEMENT. 181. BUYER HAS RECEIVED A (check any that apply): ❑ DISCLOSURE STATEMENT. SELLER'S PROPERTY OR A 182. R) DISCLOSURE STATEMENT.- SELLER'S DISCLOSURE ALTERNATIVES FORM. 163. DESCRIPTION OF PROPERTY CONDITION: See Disclosure Statement: Seller's Property or Disclosure Statement: 184. Seller's Disclosure Alternatives for description of disclosure responsibilities and limitations, if any. 185. BUYER HAS RECEIVED THE INSPECTION REPORTS, IF REQUIRED BY MUNICIPALITY. 186. BUYER IS NOT RELYING ON ANY ORAL REPRESENTATIONS REGARDING THE CONDITION OFTHE PROPERTY 187. AND ITS CONTENTS. MN:PA-4 (8114) PURCHASE AGREEMENT 188. Page 5 Date 6/18/2015 189. Property located at 4415 Nevada Avenue N New move HN 55426 190. (Check appropriate boxes.) 191. SELLER WARRANTS THAT THE PROPERTY IS EITHER DIRECTLY OR INDIRECTLY CONNECTED TO: 192. CITY SEWER ❑?C YES ❑ NO 1 CITY WATER AYES ❑ NO 193. SUBSURFA.CrSEWAGETREATMENT SYSTEM 194. SELLER ❑ DOES ❑ DOES NOT KNOW OF A SUBSURFACE SEWAGE TREATMENT SYSTEM ON OR ---- 195. SERVING THE PROPERTY. (If answer is DOES, and the system does not require a state permit, see Disclosure 196. Statement: Subsurface Sewage Treatment System.) 197. PRIVATE WELL 198. SELLER ❑ DOES ❑ DOES NOT KNOW OF A WELL ON OR SERVING THE PROPERTY. 199. (If answer is DOES and well is located on the Property, see Disclosure Statement: Well.) 200. THIS PURCHASE AGREEMENT ❑ IS 01S NOT SUBJECT TO AN ADDENDUM TO PURCHASE AGREEMENT.• - -(Cto* one.} ---- 201. SUBSURFACE SEWAGE TRE4TMENT SYSTEM AND WELL INSPECTION CONTINGENCY. 202. (if answer is IS, see attached Addendum.) 203. IF A WELL OR SUBSURFACE SEWAGE TREATMENT SYSTEM EXISTS ON THE PROPERTY, BUYER HAS 204. RECEIVED A DISCLOSURESTATEMENT. WELL ANDIOR A DISCLOSURE STATEMENT SUBSURFACESEWAGE 205. TREATMENT SYSTEM. 206. NOTICE REGARDING PREDATORY OFFENDER INFORMATION: Information regarding the predatory offender 207. registry and persons registered with the predatory offender registry under MN Statute 243.166 may be obtained 208. by contacting the local law enforcement offices In the community where the Property is located or the Minnesota 209. Department of Corrections at (651) 361-7200, or from the Department of Corrections web site at 210. www.corr state.mmus. 211. HOME PROTECTION/WARRANTY PLAN: Buyer and Seller are advised to investigate the various home protection/ 212. warranty plans available for purchase. Different home protection/warranty plans have different coverage options, 213. exclusions, limitations and service fees. Most plans exclude pre-existing conditions. (Check one.) 214. ❑ A Home ProtectioNWan anty Plan will be obtained and paid by❑ BUYER M SELLER to be issued by (Check one.) ------------ 215. at a cost not to exceed $ 216• ® No Home Protection/Warranty Plan is negotiated as part of this Purchase Agreement. However, Buyer may elect 217. to purchase a Home Protection/Warranty Plan. 218. NOTICE 219. Jaffrey J Detlo#fis ® Seller's Agent ❑ Buyer's Agent ❑ Dual Agent ❑ Facilitator. (Licensee) ------- - - - - - lCheAk ones------ --� - 220. PE22 rty Advisors Realty LLC (Real Estate Company ) 221. _ Anthony„ Hawk is ❑ Seller's AgentiC❑ Buyer's Agent ❑ Dual Agent ❑ Facilitator. (Licensee) ------------. ___.. _._ lChedc one.}_----•-.-_-.__...._�____ .__ . 222, Hawk ttealty company _ (Real Estate Company Name) 223. THIS NOTICE DOES NX SATISFY MINNESOTA STATUTORY AGENCY DISCLOSURE REQUIREMENTS. MNTA-6 (8/14) PURCHASE AGREEMENT 224. Page 6 Date -_ 6/18/2015 225. Property located at 4415 Nevada Avenue N New Hope MN 55420 . 226. DUAL AGENCY REPRESENTATION 227. PLEASE CHECK ONEOFTHE FOLLOWING SELECTIONS: 228. © Dual Agency representation DOES NOT apply in this transaction. Do not complete lines 229-245. 229. ❑ Dual Agency representation DOES apply in this transaction. Complete the disclosure in lines 230-245. 230. Broker represents both the Seller(s) and the Buyer(s) of the Property involved in this transaction, which creates a 231. dual agency. This means that Broker and its salespersons owe fiduciary duties to both Seller(s) and Buyer(s). Because 232. the parties may have conflicting interests, Broker and its salespersons are prohibited from advocating exclusively for 233. either party. Broker cannot act as a dual agent in this transaction without the consent of both Seller(s) and Buyer(s). 234. Seller(s) and Buyer(s) acknowledge that 235. (1) confidential information communicated to Broker which regards price, terms, or motivation to buy or sell will 236. remain confidential unless Seller(s) or Buyer(s) instructs Broker in writing to disclose this information. Other 237. information will be shared; 238. (2) Broker and its salespersons will not represent the interest of either party to the detriment of the other; and 239. (3) within the limits of dual agency, Broker and its salespersons will work diligently to facilitate the mechanics of 240. the sale. 241. With the knowledge and understanding of the explanation above, Seller(s) and Buyer(s) authorize and instruct Broker 242. and its salesperson to act as dual agents in this transaction. 243. Seller 244. Seller 245. Date Buyer Buyer Date 246. CLOSING COSTS: Buyer or Seller may be required to pay certain closing costs, which may effectively increase the 247. cash outlay at closing or reduce the proceeds from the sale. 248. ENTIRE AGREEMENT: This Purchase Agreement and any addenda or amendments signed by the parties shall 249. constitute the entire agreement between Buyer and Seller. Any other written or oral communication between Buyer and 250. Seller, including, but not limited to, e-mails, text messages, or other electronic communications are not part of this 251. Purchase Agreement. This Purchase Agreement can be modified or canceled only in writing signed by Seiler and 252. Buyer or by operation of law. All monetary sums are deemed to be United States currency for purposes of this Purchase 253. Agreement. 254. ELECTRONIC SIGNATURES: The parties agree the electronic signature of any party on any document related to this 255. transaction constitute valid, binding signatures. 256. FINAL ACCEPTANCE: To be binding, this Purchase Agreement must be fully executed by both parties and a copy 257. must be delivered. 258. SURVIVAL: All warranties specified in this Purchase Agreement shall survive the delivery of the deed or contract 259. for deed. 260. OTHER: 261. 262. 263. 264. 265. 266. 267. MN:PA-6 (8114) PURCHASE AGREEMENT 268. Page 7 Date 6/18/2015 269. Property located at 4435 Nevada Ay4 ure N _. New Hope NN 55428 270. ADDENDA AND PAGE NUMBERING: Attached addenda are a part of this Purchase Agreement. 271. Enter total number of pages of this Purchase Agreement, including addenda, on line two (2) of page one (t). 272. NOTE: Disclosures and optional Arbitration Agreement are not part of this Purchase Agreement and should 273. not be part of the page numbering. 274. I, the owner of the Property, accept this Purchase I agree to purchase the Property for the price and on 275. Agreement and authorize the listing broker to withdraw the terms and conditions set forth above 276. said Property from the market, unless instructed I have reviewed all pages of this Purchase 277. otherwise in writing. Agreement. 278. 1 have reviewed all pages of this Purchase Agreement. 279. ❑ If checked, this Purchase Agreement is subject to 280. attached Addendum to Purchase Agreement: 281. Counterofl+er. 282. X X (Seller's signature) (Dam) (Buyefs Signature) (date) 283. X X City Ot aew Hope !anomia Development AxLth=1ty (Seller's Printed Name) (Buyer's Printed Name) 284. X X (Marital Status) (Marital Status) 285. X X (Seller's Signature) (Date) (Buyer's Signature) (Data) 286. X X (Seller's Printed Name) (Buyers Printed Name) 287. X X (Marital Status) (Marital Status) 288. FINAL ACCEPTANCE DATE: The Final Acceptance Date 289. is the date on which the fully executed Purchase Agreement is delivered. 290. THIS IS A LEGALLY BINDING CONTRACT BETWEEN BUYER(S) AND SELLER(S). 291. IF YOU DESIRE LEGAL OR TAX ADVICE, CONSULT AN APPROPRIATE PROFESSIONAL. 292. 1 ACKNOWLEDGETHAT I HAVE RECEIVED AND HAVE HADTHE OPPORTUNITYTO REVIEWTHE DISCLOSURE 293. STATEMENT ARBITRATION DISCLOSUREAND RESIDENTIAL REAL PROPERTYARBITRATION AGREEMENT, 294. WHICH IS AN OPTIONAL, VOLUNTARY AGREEMENT AND IS NOT PART OF THIS PURCHASE AGREEMENT. 295. SELLER(S) 296. SELLER(S) MN:PA-7 (8/14) BUYERS) City of aew Trope anomia Levelepaeat AotM"ty BUYER(S) ADDENDUM TO PURCHASE AGREEMENT - PROPERTY ADVISORS BUYER PURCHASING "AS IS" AND LIMITATION OF SELLER LIABILITY This form approved by the Minnesota Association of REALTORSe, which disclaims any liability arising out of use or misuse of this form. ® 2014 Minnesota Association of REALTORS'", Edina, MN 1. Date 6115115 2. Page 13 3. IN THE EVENT SELLER HAS COMPLETED, AND BUYER HAS RECEIVED, A 4. SELLER'S PROPERTY DISCLOSURE STATEMENT, DO NOT USE THIS 5. ADDENDUM WITHOUT FIRST SEEKING LEGAADVICE. 6. Addendum to Purchase Agreement between parties, dated IAj Y _,20 Ir 7. pertaining to the purchase and sale of the Property located at 4415 Nevada Avenue N 8. Now Hope MX 55428 9. Limitation of Seller Liabil fty: The Property is being sold in its existing condition. Buyer acknowledges that the Property, 10. including all improvements, is being sold on an "As -is" and "Where -Is" basis, with all existing faults. Prior to closing, 11. Buyer will make such inspections of the Property as are consistent with the terms of this Purchase Agreement in order 12. to satisfy Buyer as to the condition of the Property. The Seller warranties contained in the Purchase Agreement shall 13. remain unmodified by this Addendum. 14. The "Risk of Loss" provisions of the Purchase Agreement (lines 150-155) shall remain unmodified by this Addendum 15. Seller and Buyer shall execute a Seller's Disclosure Alternatives with the "Waiver" section completed. Seller remains 16. obligated to make "Other Required Disclosures" in the Disclosure Statement Seller's Disclosure Alternatives. Except 17. for "Other Required Disclosures," Buyer acknowledges that Seller has not made any oral or written representations 18. regarding the condition of the Property subject to this Purchase Agreement. By accepting delivery of the deed at closing, 19. Buyer will be deemed to have accepted the condition of the Property subject to this Purchase Agreement as satisfactory 20. to Buyer, and Seller shall have no liability with respect to the condition of such Property. Buyer waives any claims 21. related in any way to the condition of the Property. 22. WARNING: THIS ADDENDUM WILL AFFECT THE LEGAL RIGHTS OF BUYER 23. AND SELLER. BUYER AND SELLER ARE STRONGLY ENCOURAGEDTO OBTAIN 24. LEGAL ADVICE BEFORE AGREEING TO THIS ADDENDUM. 25. (sellers signature) (Date) (Buyers Signature) (Date) 26. (Sellers Signature) (Date) (Buyers Signature) (Date) 27. THIS IS A LEGALLY BINDING CONTRACT BETWEEN BUYER(S) AND SELLER(S). 28. IF YOU DESIRE LEGAL OR TAX ADVICE, CONSULT AN APPROPRIATE PROFESSIONAL. MN:APA:AI (8/14) ADDENDUM TO PURCHASE AGREEMENT This form approved by the Minnesota Association of R1=ALTORS®, which disclaims any liability arising out of use or misuse of this form - 0 2011 Minnesota Association of REALTORS®, Edina, MN 1. Date 611812 015 2. Page 9 of 13 3. Addendum to Purchase Agreement between parties, dated ane 18 '20 15 , pertaining to the 4. purchase and sale of the property at 4415 Nevada Avenue N 5. Now Hope, XK 55428 6. In the event of a conflict between this Addendum and any other provision of the Purchase Agreement, the language 7. in this Addendum shall govern. 8. The purchase agreement is contingent on the following: 9. Review and approval of the terms of the purchase agreement by the New 10Hope City Council/RDA (estimated to be June 22, 2015); 11. If the above contingency is not met, Buyer may declare this purchase 12.agreement cancelled by written notice to Seller, or licensee representing or assisting Seller, in which case this purchase agreement 13. is cancelled. If Buyer declares this purchase agreement cancelled due 14, to the failure of the above contingency, Buyer and Seller shall immediately sign a Cancellation of Purchase Agreement confirming said 15' cancellation and directing all earnest money paid hereunder to be 16. refunded to Buyer. 17. 18. 19. Buyer agrees to assume repairs required by the City of New Hope Point 20• of Sale inspection. 21. 22. 23. 24. 25. 26. 27, 26. 29. 3o. 31. (Seller) (Das) (Buyer) (Date) {4j (seller) (Dal:) (Buyer) (Date) 33. THIS IS A LEGALLY BINDING CONTRACT BETWEEN BUYERS AND SELLERS. 34. IF YOU DESIRE LEGAL OR TAX ADVICE, CONSULT AN APPROPRIATE PROFESSIONAL. MN -APA (8M 1) ADDENDUM TO PURCHASE AGREEMENT This form approved by the Mianesata Assedalien of REALTORS°, which diedaims any "Ilty arlsing out of use or misuse of this form. ® 2OW Miramsdalion 0 REALTORS", E in , MN 1. Date I� 19 a �2 0 0 E. Page /V - ef 13 3. Addendum to Purchase Agreement between parties, dated K.1 , 20 , perWr ing to the 4. purchase and sale of the property at 5. Buyer(s) hereby acknowledge they should use their inspection period to examine B. the property both physically and politically, ie check assessments, truth in housing 7, and/or code compliance requirements, zoning, rental licensing requirements, etc. s. 9. Buyers) will assume all R & Rrs on city truth in housing/code compliance/point 1o. of sale report. Buyer(s) will assume all inspection, registration, permit, vacant 11. building registration fees and/or bond fees required by city. 12. . 13. Buyer must check with city and assume stop box repairs and/or replacement. 14. if applicable buyer will sign city escrow agreement and escrow funds with the 15, city, county, and/or buyers lender for any and all required R & R'5, work orders, 16. code compliance, septic system, wells, city sewer upgrades, repairs or connection, 17. stop box repairs or replacement, meter repair or replacement, etc. Is. . 19. .Buyers) will assume any city assessments or charges for connecting or 20. disconnecting the water meter on the subject property. Some cities including but 21. not limited to the city of Minneapolis can assess a water meter tampering or 22. .replacement charge of approximately $200.00. This fee must be paid for by the 23. buyer. 24. , 25,-Buyer(s) to be responsible for purchase and installation of carbon monoxide 26. , detectors per Minnesota Law. 27. . 28.If there is any conflict between the MAR purchase agreement and the sellers counter 29. offer addendums, the sellers counter offer addendurns shall control. 30. 31. teener) (Osis! let"n 10816/ 32. {weer} IQate) teen 33. THIS IS A LEGALLY BINDING CONTRACT 13ETWEEN BUYERS AND SELLERS. 34. IF YOU DESIRE LEGAL OR TAX ADVICE, CONSULT AN APPROPRIATE PROFESSIONAL. MN -APA (8106) .sdp ly I I 4 13 REAL ESTATE DISCIASURE ADDENDUM AND RELEASE fluvow and Buver(s) AMWAdgOddn that &Z are aware that due to nossibf x r darr{a d a �rndtor and l excessive W stlrre mold, mildew and/or other mki mcopic emnisnrs may be r_ resent the o gM er�t ►._ Buyer(s) and Buyer(s) Agent are aware that ,& ex mwe to certain m Eau armold mov noose serious health risks. Particularly in individuals with immune system dgfrciencies, allereies orresniratory problems. an rgun hildr+en and ewe rs To the best of ,_.,_,_, Salter's knowledge no tests have been perfurntrd and no invigoda undertaken iR maydk n WA mW, funglr h or any ager Microscopic orgallrgmg &N m t HAh a m&a ammaL. B a an A ant ckn wte EMEM Nein sold old ari rnnveyed "ASIS". Buver(sl andkuy_erfsl AUAt further acknowledge th�er the terms of the Contract ofSale. Buyer(S) have had, or w' have had, prior to elosi►rQ full g timely oP rtutti M a orn late ins c . n the b ect ro includi an a v' nmenlal imatio ori vesti ati n of the subiect 9MOr-IL Buve anr�► ft yar{s) Agant aeree that the Purchase price of the nronerty„ a ects the agreed anon value g'the rtrro�rty �'A�S IS' : Irrcludl g the Rforesreniioned disclos�eres. Buyer furtheracnwledFes that MinngW(g Statute 229,51 requires ins#allatioa ofa VL listed Carbon MoH20e alarm wither 1O LE—d of V1aw&1de-1LiaCaMg, Buyer assumes responsr'_biilty r irrstal!!nr aid arms to comaly with the laip. Buyer is responsible for any water or utility reconnection fees. In the event that utilities are disconnected for any reason Seller will not reconnect or reactivate them. Seller has not made and does not make any express or implied representation or warranty of any kind with respect to the environmental condition of the subject property or whether it is in compliance with any local. state, or federal environmental law, code, or standard. Buyer(s) and Buyer(s) Agent hereby agree not to pursue any claim against Seller or its Agents for any violation of any such laws, codes, standards, or for cost incurred in conducting investigations pursuant to such laws, codes, or standards. In addition, Buyer(s) and Buyer(s) Agent agree to fully and forever release, discharge and hold harmless Seller, its agents, employees, contractors, and representatives from and against any claims, damages, losses, costs or expenses of any kind sustained or arising directly or indirectly from or in connection with any known or unknown condition of the subject property. Buyer- Date Buyer Date Buyer Agent- PLEASE SIGN Date 3. 4. ADDENDUM TO PURCHASE AGREEMENT DISCLOSURE OF INFORMATION ON LEAD-BASED PAINT AND LEAD-BASED PAINT HAZARDS This form approved by the Minnesota Association of REALTORSO, which disclaims any liability arising out of use or misuse of this form. ® 2009 Minnesota Association of REALTORS®, Edina, MN 1. Date 6/18/2015 2. Page 12 of 13 Addendum to Purchase Agreement between parties, dated 6/18/2D15 pertaining to the purchase and sale of the property at 5. New Hope, MN 55428 4415 Nevada Avenue N 6. Section I: Lead Warning Statement 7. Everybuyer of any interest in residential real property on which a residential dwelling was built prior to 1978 is notified 8. that such property may present mtposure to lead from lead-based paint that may place young children at risk of 9. developing lead poisoning. Lead poisoning in young children may produce permanent neurological damage, including 10. learning disabilities, reduced intelligence quotient, behavioral problems and impaired memory. Lead poisoning also 11. poses a particular risk to pregnant women. The seller of any interest in residential real property is required to provide 12. the buyer with any information on lead-based paint hazards from risk assessments or inspections in the seller's 13, possession and notify the buyer of any known lead-based paint hazards. A risk assessment or inspection for possible 14. lead-based paint hazards is recommended prior to purchase. 15. Seller's Disclosure (initial) 16. (a) Presence of lead-based paint and/or lead-based paint hazards. 17. (Check one below.) 18. ❑ Known lead-based paint and/or lead-based paint hazards are present in the housing 19. (explain): `afj 21. ❑ Seller has no knowledge of lead-based paint and/or lead-based paint hazards in the housing 22. (b) Records and reports available to the seller. 23. (Check one below.) 24. ❑ Seller has provided Buyer with all available records and reports pertaining to lead-based paint 25. and/or lead-based paint hazards in the housing (list documents below); 26. 27. ❑ Seller has no reports or records pertaining to lead-based paint and/or lead-based paint hazards 28. in the housing. 29. Buyer's Acknowledgment (initial) 3o. _ (c) Buyer has received copies of all information listed under (b) above. 31. (d) Buyer has received the pamphlet, Protect Your Family from Lead in Your !-tome. 32. ..... ® (e) Buyer has (check one below): 33. ❑ Received a 10 -day opportunity (or mutually agreed-upon period) to conduct a risk assessment 34. or inspection for the presence of lead-based paint and/or lead-based paint hazards (if checked, 35. see Section 1! on page 2); or 36. © Waived the opportunity to conduct a risk assessment or inspection for the presence of lead - 37. based paint and/or lead-based paint hazards. TLX:SALE-1 (8/09) 39. Property located at 4415 Nevada Avenue N ADDENDUM TO PURCHASE AGREEMENT DISCLOSURE OF INFORMATION ON LEAD-BASED PAINT AND LEAD-BASED PAINT HAZARDS 38. Page 13 of 12 New Hope, rR 55+428 40. Real Estate Licensee's Acknowledgement {initial) 41. (f) Real estate licensee has informed Seller of Seller's obligations under 42 U.S.C. 4852(d). and is aware 42. of licensee's responsibility to ensure compliance. 43. Certification of Accuracy 44. The following parties have reviewed the information above and certify, to the best of their knowledge, that the information 45. provided by the signatory is true and accurate. 46. (Seller) (Date) (Buyer) (Date) 47. (Date) (Buyer) 48. (Real Estate licensee) Jeffrey J Detlof f (Date) (Real Estate Licensee) Anthony Hawk (Date) 48. Sectlon II: Contingency (Initial only if first box under (e) is checked in Buyer's Acknowledgment above.) 50. This contract is contingent upon a risk assessment or an inspection of the property for the presence of lead - 51. based paint and/or lead-based paint hazards to be conducted at Buyer's expense. The assessment or inspection 52. shall be completed within [—]ten (10) ❑ . calendar days after Final Acceptance of the Purchase Agreement. -- (cha* oaa) — 53. This contingency shall be deemed removed, and the Purchase Agreement shall be in full force and effect, unless Buyer or 54. real estate licensee representing or assisting Buyer delivers to Seller or real estate licensee representing or assisting 55. Seller, within three (3) calendar days after the assessment or inspection is timely completed, a written list of the specific 56. deficiencies and the corrections required, together with a copy of any risk assessment or inspection report. If Seller 57. and Buyer have not agreed in writing within three (3) calendar days after delivery of the written list of required corrections 58. that: (A) some or all of the required corrections will be made; or (B) Buyer waives the deficiencies; or (C) an adjustment to 59. the purchase price will be made; this Purchase Agreement is canceled. Buyer and Seller shall immediately sign a 60. Cancellation of Purchase Agreement confirming said cancellation and directing all earnest money paid hereunder to 61. be refunded to Buyer. It is understood that Buyer may unilaterally waive deficiencies or defects, or remove this contingency, 62. providing that Buyer or real estate licensee representing or assisting Buyer notifies Seller or real estate licensee 63. representing or assisting Seller of the waiver or removal, in writing, within the time specified. TLX:SALE-2 (8/09) DISCLOSURE STATEMENT: ARBITRATION DISCLOSURE AND RESIDENTIAL REAL PROPERTY ARBITRATION AGREEMENT This form approved by the Minnesota Association of REALTORSm, which disdaims any iiabiiity arising out of use or misuse of this form. 0 2014 Minnesota Association of REALTORS*, Edina, MN 1. Page 1 2. ARBITRATION DISCLOSURE 3. You have the right to choose whether to have any disputes about disclosure of material facts affecting the use 4. or enjoyment of the property that you are buying or selling decided by binding arbitration or by a court of law. By agreeing 5. to binding arbitration, you give up your right to go to court. By signing the RESIDENTIAL REAL PROPERTY 6. ARBITRATION AGREEMENT ("ARBITRATION AGRESMENTJ on page two (2), you agree to binding arbitration under the 7. Residential Real Property Arbitration System (Arbitration System") administered by National Center for Dispute Settlement 8. ("NCDSJ and endorsed by the Minnesota Association of REALTORS* ("MNAR"). The ARBITRATION AGREEMENT is 9. enforceable only If it is signed by all buyers, sellers and licensees representing or assisting the buyers and the sellers. 10. The ARBITRATION AGREEMENT is not part of the Purchase Agreement. Your Purchase Agreement will still be 11. valid whether or not you sign the ARBITRATION AGREEMENT. 12. The Arbitration System is a private dispute resolution system offered as an alternative to the court system. It 13. is not government sponsored. NCDS and the MNAR jointly adopt the rules that govern the Arbitration System. NCDS 14. and the MNAR are not affiliated. finder the ARBITRATION AGREEMENT you must use the arbitration services of 15. NCDS. 16. All disputes about or relating to disclosure of material #acts affecting the use or enjoyment of the property, excluding 17. disputes related to title issues, are subject to arbitration under the ARBITRATION AGREEMENT. This includes claims 18. of fraud, misrepresentation, warranty and negligence. Nothing In this Agreement limits other rights you may have under 19. MN Statute 327A (statutory new home warranties) or under private contracts for warranty coverage. An agreement to 20. arbitrate does not prevent a party from contacting the Minnesota Department of Commerce, the state agency that 21. regulates the real estate profession, about licensee compliance with state law. 22. The administrative fee for the Arbitration System varies depending on the amount of the claim, but it is more 23. than initial court filing fees. In some cases, conciliation court is cheaper than arbitration. The maximum claim allowed 24. in conciliation court is $15,000. This amount is subject to future change. In some cases, it is quicker and less expensive 25. to arbitrate disputes than to go to court, but the time to file your claim and pre -hearing discovery rights are limited. The 26. right to appeal an arbitrator's award is very limited compared to the right to appeal a court decision. 27. A request for arbitration must be filed within 24 months of the data of the closing on the property or 28. else the claim cannot be pursued. In some ceases of fraud, a court or arbitrator may extend the 24 -month 29. limitation period provided herein. 30. A party who wants to arbitrate a dispute files a Demand, along with the appropriate administrative fee, with 31. NCDS. NCDS nota ies the other party, who mayfile a response. NCDS works with the partiesto select and appoint an arbitrator 32. to hear and decide the dispute. A three -arbitrator panel will be appointed instead of a single arbitrator at the request 33, of any party. The party requesting a panel must pay an additional fee. Arbitrators have backgrounds in law, real estate, 34. architecture, engineering, construction or other related fields. 35. Arbitration hearings are usually held at the home site. Parties are notified about the hearing at least 14 days 36. in advance. A party may be represented by a lawyer at the hearing, at the party's own expense, if he or she gives five 37. (5) days advance notice to the other party and to NCDS. Each party may present evidence, including documents or 38. testimony by witnesses. The arbitrator must make any award within 30 days from the final hearing date. The award must 39. be in writing and may provide any remedy the arbitrator considers just and equitable that is within the scope of the 40. parties' agreement. The arbitrator does not have to make findings of fact that explain the reason. for granting or denying 41. an award. The arbitrator may require the party who does not prevail to pay the administrative fee. 42. This Arbitration Disclosure provides only a general description of the Arbitration System and a general 43. overview of the Arbitration System rules. for specific information regarding the administrative fee, please see the 44. fee Schedule located in the NCDS Rules. Copies of the Arbitration System rules are available from NCDS by calling 45. (866) 777-8119 or (866) 727-8119 or on the Web at www.ncdsusa.org or from your REALTOR®. If you have any questions 46. about arbitration, call NCDS at (866) 777-8119 or (866) 727-8119 or consult a lawyer. MN:DSADRAA 1 (8/14) DISCLOSURE STATEMENT. ARBITRATION DISCLOSURE AND RESIDENTIAL REAL PROPERTY ARBITRATION AGREEMENT 47. Page 2 48. THIS IS AN OPTIONAL, VOLUNTARY AGREEMENT. 49. READTHE ARBITRATION DISCLOSURE ON PAGE ONE (1) IN C=ULL BEFORE SIGNING. 50. RESIDENTIAL REAL PROPERTY ARBITRATION AGREEMENT 51. For the property located at 4415 Nevada Avenue N 52. City'of . . - New sone , County of ennepin , State of Minnesota. 53. Any dispute between the undersigned parties, or any of them, about or relating to material facts affecting the use or 54. enjoyment of the property, excluding disp es related to title issues of the property covered by the Purchase Agreement 55. dated June 1s , 20\DIspute , including claims of fraud, misrepresentation, warranty and 56. negligence, shall be settled by binding arbittional Center for Dispute Settlement shall be the arbitration service 57. provider. The rules adopted by National Ceispute Settlement and the Minnesota Association of REALTORS® 58. shall govern the proceeding(s). The rules tgovern the proceedings) are those rules In effect at the time the 59. Demand for Arbitration is filed and includl specified in the Arbitration Disclosure on page one (1). This 60. Agreement shall survive the delivery of the tract for deed in the Purchase Agreement This Agreement is 61. only enforceable if all buyers, sellers and rep senting or assisting the buyers and sellers have agreed to 62. arbitrate as acknowledged by signatures br purp es of this Agreement, the signature of one licensee of a 63. broker shall bind the broker and all licenset broker. 64. -- -- (sellers Slgnab,re) (Date) (Buys Segnature) n 7 (Date) 65. (Sellers Printed Nsme) (Buyeft 66. (Seller's signature) 67. (Seller's Printed Name) 68. (Licensee Representing or Assisting Seller) Jeffrey J Detloff (Dale) (Buyer'sSlgnature) (Buyer's Printed Name) (Date) (Licensee Representing or Assisting Anthony hawk 69. Prcmmr-Advisors Aea].t LLC (company ) (Company Name) 70. THE RESIDENTIAL REAL PROPERTY ARBITRATION AGREEMENT IS A LEGALLY 71. BETWEEN BUYERS, SELLERS AND LICENSEES. IFYOU DESIRE LEGAL ADVICE, MN:DS-ADRAA-2 (8114) (Date) (Date) LAWYER. DISCLOSURE STATEMENT: PROPERTY ADVISORS SELLER'S DISCLOSURE ALTERNATIVES This form approved by the Minnesota Association of REALTORS®, which disclaims any liability arising out of use or misuse of this form. ® 2014 Minnesota Association of REALTORS®, Edina, MN 1. Date 6115/15 2. Page 1 of pages: RECORDS AND 3. REPORTS, IF ANY, ARE ATTACHED HERETO AND 4. MADE A PART HEREOF S. Property located at 4415 Nevada Avenue N 6. City of Now Hope , County of _ _ . Hennepin , State of Minnesota. 7. NOTICE: Sellers of residential property, with limited exceptions, are obligated to satisfy the requirements of MN Statutes 8. 513.52 through 513.60. To comply with the statute, Seller must provide either a written disclosure to the 9, prospective Buyer (see Disclosure Statement. Seller's Property Disclosure StatemenQ or satisfy one of the 10. following two options. Disclosures made herein, if any, are not a warranty or guarantee of any kind by -Seller or 11. licensees) representing or assisting any party in this transaction and are not a substitute for any inspections or 12. warranties the party(ies) may wish to obtain. 13. (Select" option only.) 14. 1) ❑ OUAI_IFIED THIRD -PARTY INSPECTION: Seller shall provide to prospective Buyer a written report that 15. discloses material information relating to the real property that has been prepared by a qualified third party. 16. "Qualified third party" means a federal, state or local governmental agency, or any person whom Seller or 17. prospective Buyer reasonably believes has the expertise necessary to meet the industry standards of practice 18. for the type of inspection or investigation that has been conducted by the third party in order to prepare the 19. written report. 20. Seller shall disclose to prospective Buyer material facts known by Seller that contradict any information 21. that Is Included in a written report, or material facts known by Seller that are not included in the 22. report. 23. The inspection report was prepared by 24. 25. 26. 27. 28. 29. 30. 31. 32. 33. 34. 35. and dated 20. Seller discloses to Buyer the fallowing material facts known by Seller that contradict any information included in the above referenced inspection report. Seller discloses to Buyer the following material facts known by Seller that are not included in the above referenced Inspection report. 36. 2) © WAIVER: The written disclosure required may be waived if Seller and prospective Buyer agree in writing. Seller 37. and Buyer hereby waive the written disclosure required under MN Statutes 513.52 through 513.60. 38. NOTE: If both Seller and prospective Buyer agree, in writing, to waive the written disclosure required under 39. MN Statutes 513.52 through 513.60, Seller is not obligated to disclose ANY material facts of which Seller 40. is aware that could adversely and significantly affect the Buyer's use or enjoyment of the property or any 41, intended use of the property, other than those disclosure requirements created by any other law. Seller is 42. not obligated to update Buyer on any changes made to material facts of which Seller is aware that could 43. adversely and significantly affect the Buyer's use or enjoyment of the property or any intended use of the 44. property that occur, other than those disclosure requirements created by any other law. 45. Waiver of the disclosure required under MN Statutes 513.52 through 513.60 does not waive, limit or 46. abridge any obligation far Seller disclosure created by any other law. MN:DS:SDA-1 (8114) PROPOWADMRS DISCLOSURE STATEMENT: SELLER'S DISCLOSURE ALTERNATIVES 47. Page 2 48. Property located at 4415 Nevada Avenue x New MW MN 55428 49. OTHER REQUIRED DISCLOSURES: 50. NOTE: In addition to electing one of the above alternatives to the material fact disclosure, Minnesota law also 51. requires sellers to provide other disclosures to prospective buyers, such as those disclosures listed below. 52. Additionally, there may be other required disclosures by federal, state, local or other governmental entities 53. that are not listed below. 54. A. SUBSURFACE SEWAGE TREATMENT SYSTEM DISCLOSURE: (A subsurface sewage treatment system 55, disclosure is required by MN Statute 115.6&) (Check appropriate box.) 56. Seller certifies that Seiler ❑ DOES ❑ DOES NOT know of a subsurface sewage treatment system on or serving 57, the above-described real property. (If answer is DOES, and the system does not require a state permit, see 58. Disclosure Statement: Subsurface Sewage Treatment System.) 59, 1 There is a subsurface sewage treatment system on or serving the above-described real property. 60. (See Disclosure Sts tement.• Subsurface Sewage Treatment System.) 61. ❑ There is an abandoned subsurface sewage. treatment system on the above-described real property. 62. (See Disclosure Statement: Subsurface Sewage Treatment System.) 63. B. PRIVATE WELL DISCLOSURE: (A well disclosure and Certificate are required by MN Statute 1031.235.) 64. (Check appropriate box.) 65. KSeller certifies that Seller does not know of any wells on the above-described real property. 66. ❑ Seller certifies there are one or more wells located on the above-described real property. 67. (See Disclosure Statement: Weil.) 68. 69. 70. 71. 72. Are there any wells serving the above-described property that are not located on the property? F1 Yes ❑ No to your knowledge, is the property in a Special Well Construction Area? ❑Yes ❑ No 73. C. VALUATION EXCLUSION DISCLOSURE: (Required by MN Statute 273.11, Subd.16) 74. There ❑ IS © IS NOT an exclusion from market value for home improvements on this property. Any valuation _-_(Check one.) --.- 75. exclusion shall terminate upon sale of the property, and the property's estimated market value for property tax purposes 76. shall increase. If a valuation exclusion exists, Buyers are encouraged to look into the resulting tax 77. consequences. 78. Additional comments: 79. 81. D. METHAMPHETAMINE PRODUCTION DISCLOSURE: 82. (A methamphetamine production disclosure is required by MN Statute 152.0275, Subd. 2 (m).) 83. ® Seller is not aware of any methamphetamine production that has occurred on the property. 84. ❑ Seller is aware that methamphetamine production has occurred on the property. 85. (See Disclosure Statement- Methamphetamine Production.) MN:DS:SDA 2 (8114) PROPERTY ADVISORS DISCLOSURE STATEMENT: SELLER'S DISCLOSURE ALTERNATIVES 86. - Page 3 87. Property located at 4415 Nevada Avenue N_ - _ New Hope NN 55428 88. E. RADON DISCLOSURE: 89. (The following Seller disclosure satisfies MN Statute 144.496.) 90. RADON WARNING STATEMENT: The Minnesota Department of Health strongly recommends that ALL 91. homebuyers have an indoor radon test performed prior to purchase or taking occupancy, and recommends having 92. the radon levels mitigated if elevated radon concentrations are found. Elevated radon concentrations can easily 93. be reduced by a qualified, certified, or licensed, if applicable, radon mitigator. 94. Every buyer of any interest in residential real property is notified that the property may present exposure to 95. dangerous levels of indoor radon gas that may place occupants at risk of developing radon -induced lung cancer. 96. Radon, a Class A human carcinogen, is the leading cause of lung cancer in nonsmokers and the second leading 97. cause overall. The selier of any interest in residential real property is required to provide the buyer with any 98. information on radon test results of the dwelling. 99. RADON IN REAL ESTATE: By signing this Statement, Buyer hereby acknowledges receipt of the Minnesota 100. Department of Health's publication entitled Radon in Real Esfafe Transactions, which can be found at 101. wwwheafth.state.mn.us/dWehtindoorair/radon/mrealestateweb.pdf. 102. A seller who falls to disclose the information required under MN Statute 144.496, and is aware of material facts 103. pertaining to radon concentrations in the property, is liable to the Buyer. A buyer who is injured by a violation of MN 104. Statute 144.496 may bring a civil action and recover damages and receive other equitable relief as determined by 105. the court. Any such action must be commenced within two years after the date on which the buyer closed the 106. purchase or transfer of the real property. 107. SELLER'S REPRESENTATIONS: The following are representations made by Seller to the extent of Seller's actual 108. knowledge. 109. (a) Radon test(s) ❑ HAVE © HAVE NOT occurred on the property. 110. (b) Describe any known radon concentrations, mitigation, or remediation. NOTE: Seller shall attach the most 111. current records and reports pertaining to radon concentration within the dwelling: 112. 113. 114. 115. (c) There ❑ IS © IS NOT a radon mitigation system currently installed on the property. ---lchedrore}-__ 116. If "IS," Seller shall disclose, If known, information regarding the radon mitigation system, including system 117. description and documentation. 118. 119. _ 120. 121, R NOTICE REGARDING AIRPORT ZONING REGULATIONS: The properly maybe in or near an airport safety zone 122. with zoning regulations adopted by the governing body that may affect the property. Such zoning regulations are 123. filed with the county recorder in each county where the zoned area is located. If you would like to determine 'If such 124. zoning regulations affect the property, you should contact the county recorder where the zoned area is located. 125. G. NOTICE REGARDING CARBON MONOXIDE DETECTORS: 126. MN Statute 299F.51 requires Carbon Monoxide Detectors to be located within ten (10) feet from all sleeping 127. rooms. Carbon Monoxide Detectors may or may not be personal property and may or may not be included in the 128. sale of the home. MN:DS:SDA-3 (8114) PRMERTYAWSM DISCLOSURE STATEMENT - SELLER'S DISCLOSURE ALTERNATIVES 129, Page 4 130. Property located at 4415 Nevada Avenue N NOW 8o NN 55428 131. H. WATER INTRUSION AND MOLD GROWTH: Recent studies have shown that various forms of water intrusion 132. affect many homes. Water intrusion may occur from exterior moisture entering the home and/or interior moisture 133. leaving the home. 134. Examples of exterior moisture sources may be 135. • improper flashing around windows and doors, 136. • improper grading, 137. • flooding, 138. 0 roof leaks. 139. Examples of interior moisture sources may be 140. 0 plumbing leaks, 141. • condensation (caused by indoor humidity that is too high or surfaces that are too cold), 142. overflow from tubs, sinks or toilets, 143. firewood stored indoors, 144. humidifier use, 145. inadequate venting of kitchen and bath humidity, 146. improper venting of clothes dryer exhaust outdoors (including electrical dryers), 147. line -drying laundry indoors, 148. houseplants --watering them can generate large amounts of moisture. 149. 1n addition to the possible structural damage water intrusion may do to the property, water intrusion may also result 1 % in the growth of mold, mildew and other fungi. Mold growth may also cause structural damage to the property. 151. Therefore, it is very important to detect and remediate water intrusion problems. 152. Fungi are present everywhere in our environment, both indoors and outdoors. Many molds are beneficial to humans. 153. However, molds have the ability to produce mycotoxins that may have a potential to cause serious health problems, 154. particularly in some immunocompromised individuals and people who have asthma or allergies to mold. 155. To complicate matters, mold growth is often difficult to detect, as it frequently grows within the wall structure. If you 156. have a concern about water intrusion or the resulting moldlmlidew/fungi growth, you may want to consider having 157. the property inspected for moisture problems before entering into a purchase agreement or as a condition of your 158. purchase agreement. Such an analysis is particularly advisable if you observe staining or any musty odors on the 159. property. 160. For additional information about water intrusion, indoor air quality, moisture or mold issues, please view the 161. Minnesota Association of REALTORS® Desktop Reference Guide at www.mnrealtorcom. 162. I. NOTICE REGARDING PREDATORY OFFENDER INFORMATION: Information regarding the predatory 163. offender registry and persons registered with the predatory offender registry under MN Statute 243.166 164. may be obtained by contacting the local law enforcement offices In the community where the property is 165. located or the Minnesota Department of Corrections at (651) 381-7200, or from the Department of Corrections 166. web site at www.corr state.mmus. MN:DS:SDA-4 (8114) pROPMNA DORS DISCLOSURE STATEMENT: SELLER'S DISCLOSURE ALTERNATIVES 167. Page 5 168. Property located at 447.5 Nevada Avenue N New Hope MR 55428 169. J. SELLER'S STATEMENT: 170. (To be signed at time of listing.) 171. Seller(s) hereby authorizes any licensee(s) representing or assisting any party(les) in this transaction to provide 172. a copy of this Disclosure Statement to any person or entity in connection with any actual or anticipated sale of the 173. property. A seller may provide this Disclosure Statement to a real estate licensee representing or assisting a 174, prospective buyer. The Disclosure Statement provided to the real estate licensee representing or assisting a 175. prospective buyer is considered to have been provided to the prospective buyer. If this Disclosure Statement is 176. provided to the real estate licensee representing or assisting the prospective buyer, the real estate licensee must 177. provide a copy to the prospective buyer. 178. QUALIFIED THIRD -PARTY INSPECTION: If Seiler has made a disclosure under the Qualified Third -Party 179. Inspection, Seller is obligated to disclose to Buyer in writing of any new or changed facts of which Seller is aware 180. that could adversely and significantly affect the Buyer's use or enjoyment of the property or any intended use of 181. the property that occur up to the time of closing. To disclose new or changed facts, please use the Amendment to 182. Disclosure Statement form. 183. WAIVER: If Seller and Buyer agree to waive the seller disclosure requirement, Seiler is NOT obligated to disclose 184. and will NOT disclose any new or changed information regarding facts. 185. OTHER REQUIRED DISCLOSURES (Sections A-E): Whether Seller has elected a Qualified -Third Party Inspection 186. or Waiver, Seller is obligated to notify Buyer, in writing, of any new or changed facts regarding Other Required 187. Disclosures up to the time of closing. To disclose new or changed facts, please use the Amendment to Sellers 188. Disclosure form. 189. (seder} (Date) (Seiler) 190. K. BUYER'S ACKNOWLEDGEMENT: 191. (To be signed at time of purchase agreement) Em 192. I/We, the Buyer(s) of the property, acknowledge receipt of this Seller's Disclosure Alternatives form and agree to 193. the seller's disclosure option selected in this form. WVe further agree that no representations regarding facts have 194. been made, other than those made in this form. 195. (BUY60 196. 197. MNOS:SDA-5 (8114) (Date) (eureo (Dat€) LISTING BROKER AND LICENSEES MAKE NO REPRESENTATIONS HEREIN AND ARE NOT RESPONSIBLE FOR ANY CONDITIONS EXISTING ON THE PROPERTY. Radar in Racal Estate Transactions All Minnesota homes can have dangerous levels of radon gas in them. Radon is a colorless, odorless and tasteless IDErARTIMENTONNIFALTH rediloactive gas that can seep into homes from the earth. When inhaled, its radioactive particles can damage the calls that line the lungs. Long-term exposure to radon can lead to lung cancer. About 21,000 lung cancer deaths each year in the United States are caused by radon, making it a serious health concam for all Minnesotans. !t does not Ater I the hams is old or new and the only way to know haw much radon gas has entered the home is to conduct a radon test. MDH estimates 2 in 5 homes huiit before 2010 end 7 in 5 hosies built since 2010 exceed the 4.0 pCVL action level. In Minnesota, buyers and sellers in a real estate transaction are free to negotiate radon testing and reduction, Ultimately, it Is up to the buyer to decide an acceptable level of radon risk in the home. Prospective buyers should keep in mind that it is inexpensive and easy to measure radon, and radon levels can be lowered at a reasonable cost. The MDH Radon Program website provides more detailed information on radon, including the MDH brochure "Keeping YbLr Home Safe from Radon' The Minnesota Radon Awareness Act does not require radon testing or mitigation. However, many relocation companies and lending institutions, as well as home buyers, require a radon test when purchasing a house. The purpose of this publication is to educate and inform potential home buyers of the risks of radon exposure, and how to test for and reduce radon as part of real estate transactions. 91 Disclosure Recaulrementis Effective January 1, 2014, the Minnesota Radon Awareness Act requires specific disclosure and education he provided to potential home buyers during residential real estate transactions in Minnesota. This publication is being provided by the seller in order to meet a requirement of the Act. In addition, before signing a purchase agreement to will. or transfer realdenthd real property, the seller shell disclose in writing to the buyer any knowledge the seller has of radon concentrations in the dwelling. The disclosure shall include: 1. whether a radon test or tests have occurred an the property; 2, the most current records and reports perteining to radon concentrations within the dwelling; 3. a description of any radon concentrations, mitigation, or remediation; 4. information regarding the radar mitigation system, including system description and documentation, if such system has been installed in the dwelling; and 5. a radon warning statement Radon Wooing Statement "The Minnesota Department of Health strongly recommends that ALL homebuyers have an indoor radon test performed prior to purchase or faking occupancy, and recommends having the radon levels mitigated if elevated radon concentrations are found. Elevated radon concentrations can easily he reduced by a qualified, cartified, or licensed, if applicable, radon mitigator. Every buyer of any interest In residential reel property Is notified that the property may present exposure to dangerous levels of indoor radon gas that may place the occupants at risk of developing radon - induced lung cancer. Radon, a Class A human carcinogen, is the leading rause of lung cancer in nonsmokers and the second leading cause overall. The seller of any interest in residential real property is required to provide the buyer with any informatian on radon mast results of the dwelling," Radon Facts Nona dangerous radon? Radon is the somber one New of lung cantor in non-smokers and the second leading reuse of lung cancer overall, next to tobacco smoking. Ther-MAly, much of this risk can be prevented through testing and taking action to reduce high levels of radon gas when and where they are found. Your risk for lung cancer increases with higher levels of radon gas, prolonged exposure and whether or not you are a smoker: Whore is year greatest exposure to Tadao? Radon is present everywhere, and there is no known sofa level. Your greatest exposure is where it can concentrate indoors and where you spend most of your time, For most Minnesotans, this is at home. Whether a home is old or new, well -sealed or drafty, with or without a basement• any home can base high levels of radon. uranium and radium commonly found in nearly all soils in Minnesoto. As a gas, radon mores freely through the soil and eventually into the air you brestlhs. Our homes tend to draw soil gases, including radon. into the structure. I hale a naw book, aren't radon levels reduced already? Homes built in Minnesota since June 2009 are required to contain construction features that may limit radon entry. These features are known as passive Radon Resistant New Construction IRRNCI. While these passive RRNC features may lower the amount of radon in newer homes, it does not gusrantee low levels. It is recommended all new homes be tested for radon, and if elevated levels are found, these passive RRNC features ran be easily and inexpensively sctiveted with the addition of a radgn fan in the attic, If you are buying a new home, ask if the home has any RRNC fasturas and if the home hes been tested. What is the rreannnended action based on my results7 If the average radon in the home is at or above 4.1 pCK the house should he fined. Consider fixing the home if radon levels are between 2 pCi/L end 3.9 pCVL, While it isn't possible to reduce radon to zero, the best approach is to reduce the radon levels to as low as reasonably adhlevable. Any amount of radon, even below the recommended action level, carries some risk. Naw are radon tests conducted in real estate transactions? Radon Th>3stina Because of the unique nature of real estate transactions, involving multiple parties and financial interests, there are special protocols for radon testing. House conditions when testing - Be aware that any test lasting less then three months requires closed -house conditions. ..� a Closed -house Conditions: Mean keeping all windows and doors closed, except for normal entry and exit. Before Teatiog: Begin efosed-house conditions at least 12 hours before the start of the radon test. During Testing: Maintain closed -house conditions during the entire duration of the short term test. Operate home heating or cooling systems Fastest Second fiastEsG I Slowest normally during the test. Test is completed by Two short-term test One short-term test is Where the test should be conducted a certified contractor kits are used at the performed for a Any radon test conducted for a real estate transection needs to be placed in the lowest livable ares of the with a calibrated same time, placed B-12 minimum of 48 hours, home suitable for occupancy. In Minnesota, this is CRM for a midmum inches apart, for a mini- Test kit is sent to typically in the basement, whether It is finished or of 413 hours. mum of 48 hours. lab for analysis. unfinished. Test report is Tea kits ere Anothar short-term The test Idt should be placed: analyzed to sent to the lab kit is used in the same two to six feat above the floor ensure that it is for analysis. place as the first, • at least three feet from exterior wells started right after the a valid test. The tyyp test first test is � four inches away from other objects in a location where it wont be disturbed results are averaged takers down. Test . not in enclosed areas to get the radon level. is performed for a . not in areas of high heat or humidity minimum of 48 hours. Test kit is sent to If the house has multiple foundation types, it is the lab for analysis recommended that each of these be tested. Far instance, if the house hes one or more of the following The two test foundation types --basement, crawl space, slab -on- results are averaged to grade --e test should be performed in the basement get the radon level. and in at least one room over the crawlspece and we room with a slab -on -grade area. Who should conduct radon testing in real estate traossctions? All radon tests should be conducted in accordance with national radon measurement protocols, by a certified and MOH -listed professional. This ensures the test was conducted properly, in the correct location, and under appropriate building conditions. A list of these radon measurement professionals can be found at MOH's Radon web site. A seller may have previously conducted testing in a property. It the test result is at or above the action level, the home should be mitigated. Radon Mitic>lation Lawerlog radon in aideting hones — Radon Mitigation 'i When elevated levels of radon are found, they should be mitigated. Elevated radon concentrations can be easily reduced by a nationally certified and MQH-Iisted radon mitigation professional. A list of these radon mitigation professionals can be found at M❑H's Radon web site, ..Frsenna Radon mitigation is the process or system used to reduce radon concentrations in the f breathing zones of occupied buildings. The goal of a radon mitigation system is to reduce pt�� r" t"t` the indoor radon levels to below the EPA action level of 4.0 pC'VL. A quality radon reduction Gannon} sia% [mitigation] system is often able to reduce the annual average radon level to below 2.0 pCik Active sub -slab suction (also called sub -slab depressurization, or 5501 is the most common h and usually the mast reliable type of system because it draws radon -filled air from beneath the [house and vents it outside. There are standards of precdoe that need to be followed for the installation of these systems. More informetion on radon mitigation can be found at the M0H An Radon website. After a radon reduction eptom is hrshlled '.Ft 1 • y Perform an independent short-term test to ensure that the reduction system is effective. Make Wall 0-,L+- sure the radon system is operating during the entre test. Once a confirmatory radon test — --- -- shows low levels of radon in the home, be sure to retest the house every two years to confirm continued radon reduction. » or Contact the MON Radon Program N Tau are uncertain about anything MOH Radon Pralmno regarding radon testing or mitigotion. 625 Robert St N The MQH Radon Program can provide: P.O. Box 84875 St. Paul, MN 551 B4-0975 • Information about radon health effects, radon testing and radon mitigation; 16511201-4601 • Names of trained, certified and MQH-listed radon professionals; 111119003 798-9050 '.J Email: heelth.indoorair@state.mn.us Web: www.health.state.mn.us/radon 1W2D18 IC/ 1413722 AGENCY RELATIONSHIPS IN REAL ESTATE TRANSACTIONS 1. Pagel 2. MINNESgTREQUIRES that early in any relationship, real estate brokers or salespersons discuss with 3. consumers what type of agency representation or relationship they desire.") The available options are listed below. This 4. is not a contract. This Is an agency disclosure form only. If you desire representation you must enter Into a 5. written contract, according to state law (a listing contract or a buyerAenant representation contract). Until such time 6. as you choose to enter into a written contract for representation, you will be treated as a customer and will not receive 7. any representation from the broker or salesperson. The broker or salesperson will be acting as a Facilitator (see 8. paragraph IV on page two (2)), unless the broker or salesperson is representing another party, as described below. 9. ACKNOWLEDGMENT: I/We acknowledge that Uwe have been presented with the below -described options. 10. I/We understand that until i/we have signed a representation contract, l/we anVare not represented by the 11. broker/salesperson. I/We understand that written consent is required for a dual agency relationship. 12. THIS IS A DISCLOSURE ONLY, NOT A CONTRACT FOR REPRESENTATION. (Signature) 14. I. Seller's/Landlord's Broker: A broker who lists a property, or a salesperson who is licensed to the listing broker, 15. represents the Seller/Landlord and acts on behalf of the Seller/Landlord. A Seller's/Landlord's broker owes to 16. the Seller/Landlord the fiduciary duties described on page two (2).(2) The broker must also disclose to the Buyer 17, material facts as defined in MN Statute 82.68, Subd. 3, of which the broker is aware that could adversely and 18, significantly affect the Buyer's use or enjoyment of the property. (MN Statute 82.68, Subd. 3 does not apply to 19. rental/lease transactions.) If a broker or salesperson working with a Buyer/Tenant as a customer is representing the 20. SellerA andlord, he or she must act in the Sellees/Landlord's best interest and must tell the Seller/Landlord any 21. information disclosed to him or her, except confidential information acquired in a facilitator relationship (see paragraph 22. IV on page two (2)). In that case, the Buyer/Tenant will not be represented and will not receive advice and counsel 23. from the broker or salesperson. 24 I1. Buyer'affenant's Broker: A Buyer/Tenant may enter into an agreement forthe broker or salesperson to represent . and act on behalf of the Buyer/Tenant. The broker may represent the BuyeriTenant only, and not the Seller/Landlord, 6. even if he or she is being paid in whole or in part by the Seller/Landlord. A Buyer'sffenanfs broker owes to the 27. Buyer/Tenant the fiduciary duties described on page two (2).(2) The broker must disclose to the Buyer material facts 28as defined in MN Statute 82.68, Subd. 3, of which the broker is aware that could adversely and significantly affect 29. the Buyer's use or enjoyment of the property. (MN Statute 82.68, Subd. 3 does not apply to rental/lease transactions.) 30. If a broker or salesperson working with a Seller/Landlord as a customer is representing the Buyer Tenant, he or 1. she must act in the Buyees/Tenanfs best interest and must tell the Buyer/Tenant any information disclosed to him or her, except confidential information acquired in a facilitator relationship (see paragraph IV on page two (2)). In 3 that case, the Seller/Landlord will not be represented and will not receive advice and counsel from the broker 34. salesperson. 35. 111. Dual Agency - Broker Representing both Seller/Landlord and Buyer Tenant: Dual agency occurs when one 36. broker or salesperson represents both parties to a transaction, or when two salespersons licensed to the same 37. broker each represent a party to the transaction. Dual agency requires the informed consent of all parries, and 38. means that the broker and salesperson owe the same duties to the Seller/Landlord and the Buyer/Tenant. This 39. role limits the level of representation the broker and salesperson can protide, and prohibits them from acting 40. exclusively for either party. In a dual agency, confidential Information about price, terms and motivation for pursuing 41. a transaction will be kept confidential unless one party instructs the broker or salesperson in writing to disclose 42, specific information about him or her. Other information will be shared. Dual agents may not advocate for one party 43. to the detriment of the other.0) 44. Within the limitations described above, dual agents owe to both Seller/Landlord and Buyer/Tenant the fiduciary 45. duties described below.(2) Dual agents must disclose to Buyers material facts as defined in MN Statute 82.68, Subd. 46. 3, of which the broker is aware that could adversely and significantly affect the Buyer's use or enjoyment of the 47. property. (MN Statute 82.68, Subd. 3 does not apply to rental/lease transactions.) 48. 1 have had the opportunity to review the "Notice Regarding Predatory Offender Information" on (iniaalj (initiarJ 49. page two. (2) MN:AGMICS-1 (8114) rMWO AGENCY RELATIONSHIPS IN REAL ESTATE TRANSACTIONS 50. Page 2 51. IV. Facilitator: A broker or salesperson who performs services for a Buyer/Tenant, a Seller/Landlord or both but 52. does not represent either in a fiduciary capacity as a Buyer's/Tenant's Broker, Seller's/Landlord's Broker or Dual 53. Agent. THE FACILITATOR BROKER OR SALESPERSON DOES NOT OWE ANY PARTY ANY OFTHE FIDUCIARY 54. DUTIES LISTED BELOW, EXCEPT CONFIDENTIALITY, UNLESS THOSE DUTIES ARE INCLUDED IN A 55. WRITTEN FACILITATOR SERVICES AGREEMENT. The facilitator broker or salesperson owes the duty of 56. confidentiality to the party but owes no other duty to the party except those duties required by law or contained in 57. a written facilitator services agreement, if any. In the event a facilitator broker or salesperson working with a Buyer/ 58. Tenant shows a property listed by the facilitator broker or salesperson, then the facilitator broker or salesperson 59. must act as a Seller's/Landlord's Broker (see paragraph I on page one (1)). In the event a facilitator broker or 60. salesperson, working with a Seller/Landlord, accepts a showing of the property by a Buyer/Tenant being represented 61. by the facilitator broker or salesperson, then the facilitator broker or salesperson must act as a Buyer's/Tenanfs 62. Broker (see paragraph III on page one (1)). 63. This disclosure is required by law in any transaction involving property occupied or intended to be occupied by 64. one to four families as their residence. 65. (2) The fiduciary duties mentioned above are listed below and have the following meanings: 66. Loyal - broker/salesperson will act only in client(s)' best interest. 67. Obedience - broker/salesperson will carry out all client(s)' lawful instructions. 68. Dis 1�2sure - broker/salesperson will disclose to client(s) all material facts of which broker/salesperson has knowledge 69. which might reasonably affect the client(s)' use and enjoyment of the property. 70. Confidentiality - broker/salesperson will keep client(s)' confidences unless required by law to disclose specific 71. information (such as disclosure of material facts to Buyers). 72. Reasonable Care - broker/salesperson will use reasonable care in performing duties as an agent. 73. Accounting - broker/salesperson will account to client(s) for all client(s)' money and property received as agent. 74. (3) If Sellers)/Landlord(s) elect(s) not to agree to a dual agency relationship, Seller(s)/Landlord(s) may give up the 75. opportunity to sell/lease the property to Buyer(s)/Tenant(s) represented by the broker/salesperson. If Buyer(s)/ 76. Tenant(s) elect(s) not to agree to a dual agency relationship, Buyer(s)/Tenant(s) may give up the opportunity to 77. purchase/lease properties listed by the broker. 78. NOTICE REGARDING PREDATORY OFFENDER INFORMATION: Information regarding the predatory offender 79. registry and persons registered with the predatory offender registry under MN Statute 243.166 may be 80: obtained by contacting the local law enforcement offices in the community where the property Is located, 81. or the Minnesota Department of Corrections at (651) 361-7200, or from the Department of Corrections Web site at 82. www.corr.state.mmus. MN:AGCYDISC-2 (8114) t BUYER REPRESENTATION CONTRACT: NONEXCLUSIVE This form approved by the Minnesota Association of REALTORS®, which disclaims any liability arising out of use or misuse of this form. 02013 Minnesota Association of REALTORS®, Edina, MN 1. Date 6/18/2015 2. Page 1 of 3 pages 3. DEFINITIONS: Buyer is City of Now Hope ("Buyer") 4. Brokeris Hawk Realty C ("Broken. (Real Estate Company Name) 5. Buyer gives Broker the nonexclusive right to locate and/or to assist in negotiations for the purchase, exchange 6. of or option to purchase ("Purchase") property at a price and with terms acceptable to Buyer. This Contract rts on 7. June le -.2015 , and ends at 11:59 p.m. on June,I� 18 20 16 8. This Contract may only be canceled by written mutual agreement of the parties. �1'a" k-LOlt 9. Nonexclusive representation means that Buyer yer has the right to contract with other brokers for reprgsention 10. in the Purchase of property during the term of this Contract. 11. BROKER'S OBLIGATION: Broker shall make a reasonable effort to locate property acceptable to Buyer. Broker 12. shall use professional knowledge and skills to assist in negotiations for the Purchase of property. Broker shall 13. assist Buyer throughout the transaction. Broker shall act in Buyer's best interest at all times, subject to any limitations 14. imposed by law or dual agency. Broker shall comply with all applicable fair housing and nondiscrimination regulations. 15. BUYER'S OBLIGATION: Buyer shall work with Broker for the Purchase of property. Buyer shall promptly furnish to 16. Broker accurate and relevant personal financial information to ascertain Buyers abillty to Purchase property, if 17. requested. Buyer shall cooperate with Broker in finding a property to Purchase. After a purchase agreement has 18. been accepted by seller, Buyer is legally obligated to Purchase the property. If Buyer refuses to close the Purchase 19. for any reason other than the failure of seller to perform, subject to relevant contingencies, Buyer shall pay Broker 20. all compensation due under this Contract. 21. NOTICE: THE COMPENSATION FOR THE PURCHASE, LEASE, RENTAL OR MANAGEMENT OF REAL 22. PROPERTY SHALL BE DETERMINED BETWEEN EACH INDIVIDUAL BROKER AND THE 23. BROKER'S CLIENT. 24. BROKER'S COMPENSATION: (Fill in all blanks.) 25. If Buyer, or any other person acting on Buyer's behalf, agrees to Purchase any property during the term of this 26. Contract, the following compensation will apply. 27. 1. Buyer agrees to pay Broker a retainer tee of $ 0.00 at the commencement of this Contract, 28. which fee shall be kept by Broker whether or not Buyer Purchases property. The retainer fee shall apply toward 29. satisfaction of any obligation to compensate Broker. 30. 2. Buyer shall pay Broker, as Broker's compensation, 0 percent (%) of the selling price or 31. $ 0.00 _ , whichever is greater, when Buyer closes the Purchase, if: 32. A: Buyer Purchases or agrees to Purchase a property before the expiration of this Contract, with the assistance 33. of the Broker or licensee representing or assisting Buyer; or 34. B: within o days (not fo exceed six (6) months) after the expiration of this Contract, Buyer 35. Purchases property which either Broker or licensee representing or assisting Buyer has physically shown 36. Buyer or in which Buyer has made an affirmative showing of interest to Broker or licensee representing or 37. assisting Buyer before the expiration of this Contract, as long as Broker has identified this property on a 38. written fist Broker gives to Buyer within 72 hours after the expiration of this Contract, 39. Broker is authorized to negotiate and receive compensation paid by seller, or broker representing or assisting seller, 40. if Broker informs Buyer in wrfting before Buyer signs an offer to Purchase the property. Any compensation accepted 41. by Broker from seller, or broker representing or assisting seller, reduce any obligation of - --(Check one.)- -r - •.I�� 42. Buyer to pay the compensation by the amount received by seller or broker. 43. Buyer understands that Buyer does not have to pay Broker's compensation if Buyer signs another valid buyer 44. representation contract or facilitator services agreement after the expiration or cancellation of this Agreement, under 45. which Buyer is obligated to compensate another licensed real estate broker. MN:BRC:N-1 (8/13) BUYER REPRESENTATION CONTRACT. NONEXCLUSIVE 46. Page 2 47. CAUTION: BUYER'S ACTIONS IN LOCATING A PROPERTY MAY AFFECT PAYMENT OF COMPENSATION 48. BY SELLER(S) AND MAY THEREFORE OBLIGATE BUYER TO PAY ALL OR PART OF THE 49. COMPENSATION IN CASH AT CLOSING. FOR EXAMPLE: THE ACT OF GOING THROUGH AN 50. OPEN HOUSE UNACCOMPANIED BY BUYER'S BROKER OR LICENSEE REPRESENTING OR 51. ASSISTING BUYER OR SIGNING A PURCHASE AGREEMENT THROUGH ANOTHER BROKER 52. OR WITH OWNER (FOR SALE BY OWNER) MAY REQUIRE BUYER'S PAYMENT OF THE FULL 53. COMPENSATION TO BUYER'S BROKER. 54. GENERAL NATURE OF PROPERTY: (Including the following property types: existing, new construction or to -be -built.) 55. (Check all that apply.) 56. 0 CommercialAndustrial ❑ Farm ❑ Recreation 57. 0 Residential/investment ❑ Residentiawersonal Rcl Vacant Land 58. CLOSING SERVICES: 59. NOTICE: THE REAL ESTATE BROKER, LICENSEE REPRESENTING OR ASSISTING BUYER OR REAL ESTATE 60. CLOSING AGENT HAS NOT EXPRESSED AND, UNDER APPLICABLE STATE LAW, MAY NOT EXPRESS 61. OPINIONS REGARDING THE LEGAL EFFECT OFTHE CLOSING DOCUMENTS OR OFTHE CLOSING 62. fTSELE 63. After a purchase agreement for the property is signed, arrangements must be made to close the transaction. Buyer 64. understands that no one can require Buyer to use a particular person in connection with a real estate closing and that 65. Buyer may arrange for a qualified closing agent or Buyer's attorney to conduct the closing. 66. Buyer's choice for closing services. (Initial one.) 67. Buyer wishes to have Broker arrange for the closing. (BSO (Buyer) 68. Buyer shall arrange for a qualified closing agent or Buyer's attorney to conduct the closing. (Buyer) (Buyeh 69. ADDITIONAL COSTS: Buyer acknowledges that Buyer may be required to pay certain closing costs, which may 70. effectively increase the cash outlay at closing. 71. PRIVATE INSPECTIONIWARRANTY. Broker recommends that Buyer obtain a private home inspection to satisfy 72. himself/herself with the physical condition of the property. Furthermore, there are warranty programs available for 73. some properties which warrant the performance of certain components of a property, which warranty programs 74. Buyer may wish to investigate prior to the Purchase of any specific property. 75. AGENCY REPRESENTATION: If the Buyer chooses to Purchase a property listed by Broker, a dual agency will be 76. created. This means that Broker will represent both the Buyer and the seller, and owe the same duties to the seller the 77. Broker owns to the Buyer. This conflict of interest will prohibit Broker from advocating exclusively on the Buyer's behalf. 78. Dual agency will limit the level of representation Broker can provide. If a dual agency should arise, the Buyer will need 79. to agree that confidential information about price, terms and motivation will still be kept confidential unless the Buyer 80. instructs Broker in writing to disclose specific information about the Buyer. All other information will be shared. Broker 81. cannot act as a dual agent unless both the Buyer and the seller agree to it. By agreeing to a possible dual agency, the 82. Buyer will be giving up the right to exclusive representation an in-house transaction. However, if the Buyer should 83. decide not to agree to a possible dual agency, and the Buyer wants Broker to represent the Buyer, the Buyer may give 84. up the opportunity to Purchase the properties listed by Broker. 85. Buyer's Instructions to Broker: 86. Having read and understood this information about dual agency, Buyer now instructs Broker as follows: 87. ❑ Buyer will agree to a dual agency representation and will consider properties listed by Broker. 88. ❑K Buyer will not agree to a dual agency representation and will not consider properties listed by Broker. 89. Real Estate Company Name: _ Hawk Realty company 90.Buyer: 91. By 'al ��---- 6 ( Buyer: --- m Licensee) 92. Antbmy gawk Date: NIN:BRC;N-2 (8113) BUYER REPRESENTATION CONTRACT., NONEXCLUSIVE 93. Page 3 94. OTHER POTENTIAL BUYERS: Buyer understands that other potential buyers may consider and/or make offers to 95. purchase through Broker the same or similar properties as Buyer is seeking to Purchase. Buyer consents to Broker 96. representing such other potential buyers before, during and after the expiration of this Contract. 97. PREVIOUS AGENCY RELATIONSHIPS: Broker or licensee representing or assisting Buyer may have had a 98. previous agency relationship with a seller of a property Buyer is interested in Purchasing. Buyer acknowledges that 99. Buyer's Broker or licensee representing or assisting Buyer is legally required to keep information regarding the 100. ultimate price and terms the seller would accept and the motivation for selling confidential, if known. 101. NOTICE REGARDING PREDATORY OFFENDER INFORMATION: Information regarding the predatory 102. offender registry and persons registered with the predatory offender registry under MN Statute 243.166 may 103. be obtained by contacting the local law enforcement offices In the community where the property is located 104. or the Minnesota Department of Corrections at (651) 361-7200, or from the Department of Corrections web site at 105. www.corr.state.nin.us. 106. ELECTRONIC SIGNATURES: The parties agree the electronic signature of any party on any document related to this 107. transaction constitute valid, binding signatures. 108. CONSENT FOR COMMUNICATION: Buyer authorizes Broker and its representatives to contact Buyer by mail, phone, 109. fax, e-mail or other means of communication during the term of this Contract and any time thereafter. 110. 111. 112. 113. ACCEPTED BY:. Hawk x:a1 y OnygM (HOW Estate Company Name) 114. BY: 6by i (licensee) thong Hawk (Date) 115. ACCEPTED BY: (Buyer) 116. ---�- (Caie) 117. 118. (Phone) 119. - (E-mail Address) ACCEPTED BY: (Add . ) (Phone) (E-mail Addreee) (Buyer) 120. THIS IS A LEGALLY BINDING CONTRACT BETWEEN BUYER AND BROKER. 121. IFYOU DESIRE LEGAL OR TAX ADVICE, CONSULT AN APPROPRIATE PROFESSIONAL. MN:BRC:W3 (8113)