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IP #919PROJECT NO. 919 6064 Xylon Motion 09/10/12 Motion authorizing expenditure up to $135,000 for purchase of 6064 Xylon with CDBG funds Res. 13-1.7 1/14/13 Resolution approving the solicitation of rehabilitation quotes in association with the city - owned property at 6064 Xylon Avenue North (improvement project no. 919) 4/15/13 Reviewed quotes Res. 13-95 6/10/13 Resolution accepting the low bid for rehabilitation of 6064 Xylon Avenue North from Integrity Restoration, Inc. for $21,238.65 (project no. 919) Item 6.11 10/28/13 Motion approving the final payment request of $20,861.64 to Integrity Restoration, Inc. for rehabilitation of the city -owned single-family house at 6064 Xylon Avenue North (improvement project no. 919) Res. 14-56 04/14/14 Resolution approving the purchase agreement for 6064 Xylon Avenue North (project no. 919) COUNCIL A Request for Action Originating Department Approved for Agenda Agenda Section Development & Planning Community Development April 14, 2014 Item No. By: Jeff Sargent, CD Specialist By: Kirk McDonald, City Manager 8.1 Curtis Jacobsen, Director of CD Resolution approving the purchase agreement for 6064 Xylon Avenue North (Improvement Projectq Requested Action Staff requests the opportunity to discuss the purchase agreement for the property located at 6 Avenue with the City Council (improvement project no. 919). Policy/Past Practice It is a common practice for staff to discuss agreements of this type with the Council/Commission for their input. Background On October 29, 2012, the City purchased a foreclosed single family home located at 6064 Xylon Avenue North through Twin Cities Community Land Bank (TCCLB), using Community Development Block Grant (CDBG) funding. The purchase price was $135,977.76. The intent of this purchase was to rehabilitate the house and then sell it as a low-income qualified single family housing unit. The City Council hired Integrity Restoration and approved $20,861.64 worth of improvements to the property, including new kitchen appliances, new paint throughout, new carpet in the upstairs, a new AC unit, and other minor improvements. Total investments into the house equal $156,839.40. Since the city used CDBG money to purchase the house, restrictions require that the house be sold to an income -qualified person or family. Income -qualified means that the person or family purchasing the property must earn no more than 80% of the area's average medium income of $82,900. Motion bySecond by To: L\RPA\COMM DEV\Develo ment\Q&R-PA 6064 Xlon Ave 4-14-14.doc Request for Action, Page 2 April 14, 2014 The attached table indicates what these income limits are, based on the number of people in the household. The City hired Hawk Realty and put the house on the market for $189,900. Staff has received an offer on the house for $185,000, with the City paying $5,000 in closing costs. Total sale price of the property would $180,000 after payment of the closing costs. After reimbursing the CDBG program, any excess revenue generated by the sale of this house would be returned to the EDA to reimburse their fund. The individual purchasing the house has a wife and four children, and are income -qualified to purchase the home. Staff's vision was to sell this house to a larger family rather than an individual, so this situation is ideal. The individual will be using FHA insured mortgage financing to finance the house. Attachments: • Resolution • CDBG income limits table • Purchase Agreement CITY OF NEW HOPE RESOLUTION NO. 14 - 56_ RESOLUTION APPROVING PURCHASE AGREEMENT FOR 6064 XYLON AVENUE NORTH (IMPROVEMENT PROJECT NO. 919) BE IT RESOLVED, by the City Council for the City of New Hope as follows: WHEREAS, The City of New Hope purchased the property located at 6064 Xylon Avenue (the "Property") with Community Development Block Grant (CDBG) funds, which require the city to sell the Property to an income qualified family; and WHEREAS, New Hope City staff has worked with Hawk Realty (the "Realtor"), a local realtor, to sell the city -owned Property; and WHEREAS, the Realtor has been in contact with John Ogaro, an interested buyer of the property (the "Buyer"), whose family has met the income requirements set forth by Hennepin County's CDBG program; and WHEREAS, the Buyer is offering to purchase the Property for $185,000.00 with the City of New Hope paying $5,000.00 in closing costs for the sale of the Property; and WHEREAS, it is in the best interest of the City of New Hope to sell the Property for $185,000.00, with other terms and conditions as set forth in the Purchase Agreement, and NOW, THEREFORE, BE IT RESOLVED by the City Council in and for the City of New Hope as follows: 1. The City of New Hope hereby approves the purchase agreement. 2. That the City Council authorizes City Staff to sign the purchase agreement for the sale of the property located at 6064 Xylon Avenue N. at the time of closing. Adopted by the City Council of the city of New Hope, Hennepin County, Minnesota, this 1411 day of April, 2014. Kathi Hemken, Mayor Attest: Valerie Leone, City Clerk Hennepin AL DATE: TO: FROM: SUBJECT: Hennepin County Memo January 8, 2014 Hennepin County CDBG Subrecipients & Other Agencies Tonja West-Hafner, Principal Planning Analyst -fKwff CDBG INCOME LIMITS Below are the new Section 8 Income Limits effective December 1, 2013. The HUD issued Area Median Income (AMI) for the Minneapolis-St.Paul-Bloomington MSA increased very slightly from $82,300 to $82,900. Please note that while the 30 and 50 percent limits did increase slightly, the 80 percent limit actually decreased slightly. Additional information on how income limits are calculated is available on HUD's website http://www.huduser.org/portal/datasets/il/ill4/index i12014.html. The new income limits below must be used when determining household income eligibility for CDBG funded activities that need to document low/moderate-income benefit. The income limits are effective until further notice. MSA: Mpls/St. Paul FY Median Household Income: $82,900 If a project or activity also has HOME Investment Partnerships Program (HOME) funds be sure to apply the most restrictive limit for the household size and income level to the household, as the HOME limits have not yet changed. For those of you who also work on social service programs that use the federal poverty guidelines, the following 2013 Federal -HHS Poverty Guidelines (effective 1/23/2013) are provided for comparison: One person - $11,490, Two person - $15,510, Three person - $19,530, Four person - $23,550, Five person - $27,570, Six person - $31,590, Seven person - $35,610, Eight person - $39,630. For families/households with more than 8 persons, add $4,020 for each additional person. HENNEPIN COUNTY HOUSING, COMMUNITY WORKS AND TRANSIT 701 FOURTH AVENUE SOUTH, SUITE 400, MINNEAPOU3, MN 554151843 PHONE: (612) 348 -9260 -FAX: (612) 348,2920-TDD/TTY: (612) 5966985 1 Person 2 Person 3 Person 4 Person 5 Person 6 Person 7 Person 8 Person 30% 17,400 19,900 22,400 24,850 26,850 28,850 30,850 32,850 50% 29,050 33,200 37,350 41,450 44,800 48,100 51,400 54,750 80% 44,750 51,150 1 57,550 1 63,900 69,050 1 74,150 1 79,250 1 84,350 MSA: Mpls/St. Paul FY Median Household Income: $82,900 If a project or activity also has HOME Investment Partnerships Program (HOME) funds be sure to apply the most restrictive limit for the household size and income level to the household, as the HOME limits have not yet changed. For those of you who also work on social service programs that use the federal poverty guidelines, the following 2013 Federal -HHS Poverty Guidelines (effective 1/23/2013) are provided for comparison: One person - $11,490, Two person - $15,510, Three person - $19,530, Four person - $23,550, Five person - $27,570, Six person - $31,590, Seven person - $35,610, Eight person - $39,630. For families/households with more than 8 persons, add $4,020 for each additional person. HENNEPIN COUNTY HOUSING, COMMUNITY WORKS AND TRANSIT 701 FOURTH AVENUE SOUTH, SUITE 400, MINNEAPOU3, MN 554151843 PHONE: (612) 348 -9260 -FAX: (612) 348,2920-TDD/TTY: (612) 5966985 Lvl't-v-t-vv IU:cJ NeLi.b rarqu uanK, NA Mr 4 v r oldaloCU4L » N 1/1 ADDENDUM TO PURCHASE AGREEMENT: COUNTEROFFER ThW F pr rte Mnd by the Mlnnewto Aeaodadon at FiEALyono a 0—'*fterryrBMW/ WWbvout o@aroorrift" ofOdetr�. 0 2013 hlnnar0la Asaodnbn ar t1EA1. Fv. gdes, MN t. Date 04/00/14 2. Page 1 I Adftndum to PufchtW AqMrWnt between parties, dated sebroex,. 27th 20 Se 4. PWWning to the purchess sets of the Property located a@ 6064 mpion avr. m. S. More ao .ear Ssaas 6. ?hk n does 1W indu& ft W= or cofldam in any~008 C0WWvflrWyg). ' 7. The Purchase Agreement is and the WbMng COurtt=1101' is hereby rnetie All term6 and Conditions remain 8. the WIN, as stated in the Pum AgreemaM ez apt the following: 9- (SeleaaBppMdate charges loom oVnai ojbe) 10. ® Sate pries shall be $ 1SSo 000.00 11. ❑ tamest money shall be a total of $ 12, ❑ Cash of at least percent (%) of the sale geld, wtt M includes the earnest money; PLUS; 13. ❑ Financing, the total amount secured against the Property to fund the purchase. not to wmeed 14. percent (%) of the sale price. 15- ® gosing data Shall be om or before 3/30 20 14 16, Seller agrees to complete all FHA/Lander required repairs, riot to evead $ 0.00 17. Sailer shell pay Buyer'S closing costs, prepalds, insurance and 16. not to exceed $ 5,000.00 19. ❑ Possession shall be on 20 20. ® Ofher: 21. thl 0* Agreement - Fg, 5 LIAO 211 to he chockede ru aSll be no Kamm 21'6t�Ct10M/Narrane7 P1auo &o Fart of til© agreel=t. 22. amm to Purohere ayreaewmtr WA Xnatres Yat 23. to bo-bWera, Linn 68 to be o, bona 92 Vo be S1B.o00.000�oinq -Lina 59 0e &inm 66 24. 25. 26. 27. 0 ( AaOeaulm to lharcha,se Agreamentc %rryoetim Continge=V - Lille 25 to be 3o &iao 30 m, b, 2, Lice 33 to be 2, Line 43 t:o he 2, I i X �G i.`ytDg�'zei� (sohtl (Data) (a„r«I (Deal 30. ATYACH ONLYTHE FINAL COUNTEROFFER ADDENDUM TO THE PURCHASE AGREWENT. 31, THIS IS A LEGALLY VkUWQ CONTRACT BETWEEN BUVEIR(S) AND SELLER(S). 32. IF VOU DESIRE LEGAL OR TAX ADVIM CONSULT AN APPROPRIATE PROFESSIONAL, MN:APA:C W13) 04/09/2014 11:23AM (GMT -05:00) �, PURCHASE AGREEMENT This form approved by the Minnesota Association of REALTORS", which disclaims any liability arising out of use or misuse of this form. © 2013 Minnesota Association of REALTORS', Edina, MN 1. Date 2. Pagel of 3. BUYER (S): G! 5. Buyer's earnest money in the amount of 6, One Thousand Dollars ($ 1,000.00 ) 7. shall be delivered to listing broker within two (2) Business Days after Final Acceptance Date of this Purchase Agreement. 8. Buyer and Seller agree that listing broker shall deposit any earnest money in the listing broker's trust account within 9. three (3) Business Days of receipt of the earnest money. 10. Said earnest money is part payment for the purchase of the property located at 11. Street Address: 6064 %ylon Avenue N 12. City of New Hope , County of Hennepin 13 14 15 16. 17. 18. 19. 20. 21. 22. 23. 24. 25. 26. 27. 28. 29. 30. 31. 32. State of Minnesota, legally described as LOT 002 BLOCK 002 HAZEL HILLS 2ND ADDN Said purchase shall include all improvements, fixtures, and appurtenances on the property, if any, including but not limited to, the following (collectively the "Property"): garden bulbs, plants, shrubs, trees, and lawn watering system; shed; storm sash, storm doors, screens and awnings; window shades, blinds; traverse, curtain, and drapery rods, valances, drapes, curtains, window coverings and treatments; towel rods; attached lighting and bulbs; fan fixtures; plumbing fixtures; garbage disposals; water softener; water treatment system; water heating systems, heating systems; air exchange system; radon mitigation system; sump pump; TV antenna/cable TV jacks and wiring/TV wall mounts; wall/ceiling-mounted speakers and mounts; carpeting; mirrors; garage door openers and all controls; smoke detectors; fireplace screens, door and heatilators; BUILT-INS: dishwashers; refrigerators; wine/beverage refrigerators; trash compactors; ovens; cook -top stoves; warming drawers; microwave ovens; hood fans; shelving; work benches; intercoms; speakers; air conditioning equipment; electronic air filter; humidifier/dehumidifier; liquid fuel tanks (and controls); pool/spa equipment; propane tank (and controls); security system equipment; TV satellite dish; AND the following personal property shall be transferred with no additional monetary value, and free and clear of all liens and encumbrances: Notwithstanding the foregoing, leased fixtures are not included. Notwithstanding the foregoing, the following item(s) are excluded from the purchase: 33. 34. Seller has agreed to sell the Property to Buyer for the sum of ($ 180, 000.00 ) 35. one Hundred Eighty Thousand Dollars, 36. which Buyer agrees to pay in the following manner: 37. 1. CASH of 3.5 percent (%) of the sale price, or more in Buyer's sole discretion, which includes the earnest 38. money; PLUS 39. 2. FINANCING of 96.5 percent (%) of the sale price, which will be the total amount secured against this 40. Property to fund this purchase. 41. Such financing shall be (check one) ❑X a first mortgage; ❑ a contract for deed; or ❑ a first mortgage with 42, subordinate financing, as described in the attached Addendum: 43. ❑ Conventional 0 FHA ❑ DVA ❑ Assumption ❑ Contract for Deed ❑ Other: 44. The date of closing shall be Mar 28 20 14 MN:PA-1 (8/13) /sts� t rms PURCHASE AGREEMENT 45. Page 2 Date 2/27/2014 46. Property located at 6064 Xylon Avenue N New Hope MN 55428 47. This Purchase Agreement ❑ IS ❑X IS NOT subject to an Addendum to Purchase Agreement: Sale of Buyer's Property -------(Check one.1 ------- 48. Contingency for sale of Buyer's property. (If answer is IS, see attached Addendum.) 49. (If answer is IS NOT, the closing of Buyer's property, if any, may still affect Buyer's ability to obtain financing, if financing 50. is applicable.) 51. This Purchase Agreement ❑ IS ❑X IS NOT subject to cancellation of a previously written purchase agreement -------(Check one.) ------- 52. dated , 20 . (If answer is IS, said cancellation shall be obtained no later than 53. , 20 . If said cancellation is not obtained by said date, this Purchase Agreement 54. is canceled. Buyer and Seller shall immediately sign a Cancellation of Purchase Agreement confirming said cancellation 55. and directing all earnest money paid hereunder to be refunded to Buyer.) 56. Buyer has been made aware of the availability of Property inspections. Buyer ❑X Elects ❑ Declines to have a 57. Property inspection performed at Buyer's expense. ------------- (Check one.)------------- 58. This Purchase Agreement ❑X IS ❑ IS NOT subject to an Addendum to Purchase Agreement: Inspection Contingency. -------(Check one.) ------- 59. (If answer is IS, see attached Addendum.) 60. DEED/MARKETABLE TITLE: Upon performance by Buyer, Seller shall deliver a (check one): 61. ❑ Warranty Deed, ❑ Personal Representative's Deed, ❑ Contract for Deed, ❑ Trustee's Deed, or 62. X Other: Deed joined in by spouse, if any, conveying marketable title, subject to 63. (a)- building and zoning laws, ordinances, and state and federal regulations; 64. (b) restrictions relating to use or improvement of the Property without effective forfeiture provisions; 65. (c) reservation of any mineral rights by the State of Minnesota; 66. (d) utility and drainage easements which do not interfere with existing improvements; 67. (e) rights of tenants as follows (unless specified, not subjectto tenancies): 68. ;and 69. (f) others (must be specified in writing): 70. 71. REAL ESTATE TAXES: Seller shall pay on the date of closing all real estate taxes due and payable in all prior years 72. including all penalties and interest. 73. Buyer shall pay X PRORATED FROM DAY OF CLOSING ❑ 12ths OF ❑ ALL ❑ NO real estate taxes due -------------------------------- ----------------_-.---------.(Check one.} ----------------------------------- -----------------------------'._74. and payable in the year 20 14 75. Seller shall pay ❑X PRORATEDTO DAY OF CLOSING ❑ 12ths OF ❑ ALL ❑ NO real estate taxes due and 76. payable in the year 20 14 . If the closing date is changed, the real estate taxes paid shall, if prorated, be adjusted 77. to the new closing date. If the Property tax status is a part- or non -homestead classification in the year of closing, Seller 78. ❑ SHALL X❑ SHALL NOT pay the difference between the homestead and non-homestead. ..............._(Check one.) ---- Buyer shall pay real estate taxes due and payable in the year following closing and thereafter, the payment of which 80. is not otherwise herein provided. No representations are made concerning the amount of subsequent real estate taxes. 81. DEFERRED TAXES/SPECIAL ASSESSMENTS: 82. ❑ BUYER SHALL PAY ❑X SELLER SHALL PAY on date of closing any deferred real estate taxes (e.g., Green ------------------------------------ (Check one) ------------------------ ___----..-_-- 83. Acres) or special assessments, payment of which is required as a result of the closing of this sale. 84. ❑X BUYER AND SELLER SHALL PRORATE AS OF THE DATE OF CLOSING ❑ SELLER SHALL PAY ON ------- -------------- -------------------- --------------------------------(Check one p--__..._-...--..__-_-._------.--_._---..-.____-.._-.._.-._.-..-_..-_...____- 85. DATE OF CLOSING all installments of special assessments certified for payment, with the real estate taxes due and 86. payable in the year of closing. MN:PA-2 (8/13) I a, t PURCHASE AGREEMENT 87. Page 3 Date 2/27/2014 88. Property located at 6064 Xylon Avenue N New Hope MN 55428 89. ❑ BUYER SHALL ASSUME ❑X SELLER SHALL PAY on date of closing all other special assessments levied as 90. of the date of this Purchase Agreement. 91. ❑ BUYER SHALL ASSUME ❑X SELLER SHALL PROVIDE FOR PAYMENT OF special assessments pending as --------- ------------- -------------------- ----------------------- ._(Check one) --------- ----------------------- _---------------------- __._.-.. 92. of the date of this Purchase Agreement for improvements that have been ordered by any assessing authorities. (Seller's 93. provision for payment shall be by payment into escrow of two (2) times the estimated amount of the assessments 94. or less, as required by Buyer's lender.) 95. Buyer shall pay any unpaid special assessments payable in the year following closing and thereafter, the payment of 96. which is not otherwise herein provided. 97. As of the date of this Purchase Agreement, Seller represents that Seller ❑ HAS ❑X HAS NOT received a notice -_.-.---._(Check one.J..__._.-- 98, regarding any new improvement project from any assessing authorities, the costs of which project may be assessed 99. against the Property. Any such notice received by Seller after the date of this Purchase Agreement and before closing 100. shall be provided to Buyer immediately. If such notice is issued after the date of this Purchase Agreement and on 101. or before the date of closing, then the parties may agree in writing, on or before the date of closing, to pay, provide 102. for the payment of or assume the special assessments. In the absence of such agreement, either party may declare 103. this Purchase Agreement canceled by written notice to the other party, or licensee representing or assisting the other 104. party, in which case this Purchase Agreement is canceled. If either party declares this Purchase Agreement canceled, 105. Buyer and Seller shall immediately sign a Cancellation of Purchase Agreement confirming said cancellation and 106. directing all earnest money paid hereunder to be refunded to Buyer. 107. POSSESSION: Seller shall deliver possession of the Property no later than Immediately after closing. 108. Seller agrees to remove ALL DEBRIS AND ALL PERSONAL PROPERTY NOT INCLUDED HEREIN from the Property 109. by possession date. 110. PRORATIONS: All interest; unit owners' association dues; rents; and charges for city water, city sewer, electricity and 111. natural gas shall be prorated between the parties as of date of closing. Buyer shall pay Seller for remaining gallons of 112. fuel oil or liquid petroleum gas on the day of closing,_at.the rate of the last fill by Seller. 113. TITLE AND EXAMINATION: As quickly as reasonably possible after Final Acceptance Date of this Purchase Agreement: 114. (a) Seller shall surrender any abstract of title and a copy of any owner's title insurance policy for the Property, if 115. in Seller's possession or control, to Buyer or Buyer's designated title service provider; and 116. (b) Buyer shall obtain the title services determined necessary or desirable by Buyer or Buyer's lender, including 117, but not limited to title searches, title examinations, abstracting, a title insurance commitment or an attorney's 118, title opinion at Buyer's selection and cost and provide a copy to Seller. 119. Seller shall use Seller's best efforts to provide marketable title by the date of closing. Seller agrees to pay all costs 120. and fees necessary to convey marketable title including obtaining and recording all required documents, subject to the 121. following: 122. In the event Seller has not provided marketable title by the date of closing, Seller shall have an additional 30 days to 123. make title marketable, or in the alternative, Buyer may waive title defects by written notice to Seller. In addition to 124. the 30 -day extension, Buyer and Seller may, by mutual agreement, further extend the closing date. Lacking such 125. extension, either party may declare this Purchase Agreement canceled by written notice to the other party, or 126. licensee representing or assisting the other party, in which case this Purchase Agreement is canceled. If either 127. party declares this Purchase Agreement canceled, Buyer and Seller shall immediately sign a Cancellation of 128. Purchase Agreement confirming said cancellation and directing all earnest money paid hereunder to be refunded 129. to Buyer. 130. SUBDIVISION OF LAND, BOUNDARIES, AND ACCESS: If this sale constitutes or requires a subdivision of land 131. owned by Seller, Seller shall pay all subdivision expenses and obtain all necessary governmental approvals. Seller 132. warrants that the legal description of the real property to be conveyed has been or shall be approved for recording as 133. of the date of closing. Seller warrants that the buildings are or shall be constructed entirely within the boundary lines 134. of the Property. Seller warrants that there is a right of access to the Property from a public right-of-way. MN:PA-3 (8/13) PURCHASE AGREEMENT 135. Page 4 Date 2/27/2014 136. Property located at 6064 xylon Avenue N New Hope NN 55428 137. MECHANIC'S LIENS: Seller warrants that priorto the closing, payment in full will have been made for all labor, materials, 138. machinery, fixtures or tools furnished within the 120 days immediately preceding the closing in connection with 139. construction, alteration or repair of any structure on, or improvement to, the Property. 140. NOTICES: Seller warrants that Seller has not received any notice from any governmental authority as to condemnation 141. proceedings, or violation of any law, ordinance or regulation. If the Property is subject to restrictive covenants, Seller 142. warrants that Seller has not received any notice from any person or authority as to a breach of the covenants. Any 143. such notices received by Seller shall be provided to Buyer immediately. 144. DIMENSIONS: Buyer acknowledges any dimensions, square footage or acreage of land or improvements provided 145. by Seller, third party, or broker representing or assisting Seller are approximate. Buyer shall verify the accuracy of 146. information to Buyer's satisfaction, if material, at Buyer's sole cost and expense. 147. ACCESS AGREEMENT: Seller agrees to allow reasonable access to the Property for performance of any surveys or 148. inspections agreed to herein. 149. RISK OF LOSS: If there is any loss or damage to the Property between the date hereof and the date of closing for any 150. reason, including fire, vandalism, flood, earthquake or act of God, the risk of loss shall be on Seller. If the Property 151. is destroyed or substantially damaged before the closing date, this Purchase Agreement is canceled, at Buyer's option, 152. by written notice to Seller or licensee representing or assisting Seller. If Buyer cancels this Purchase Agreement, 153. Buyer and Seller shall immediately sign a Cancellation of Purchase Agreement confirming said cancellation and 154. directing all earnest money paid hereunder to be refunded to Buyer. 155. TIME OF ESSENCE: Time is of the essence in this Purchase Agreement. 156. CALCULATION OF DAYS: Any calculation of days begins on the first day (calendar or Business Days as specified) 157. following the occurrence of the event specified and includes subsequent days (calendar or Business Days as specified) 158. ending at 11:59 P.M. on the last day. 159. BUSINESS DAYS: "Business Days" are days which are not Saturdays, Sundays or state or federal holidays unless 160. stated elsewhere by the parties in writing. 161. DEFAULT: If Buyer defaults in any of the agreements herein, Seller may cancel this Purchase Agreement, and any _ 162. payments made hereunder, including earnest money, shall be retained by Seller as liquidated damages and Buyer 163. and Seller shall affirm the same by a written cancellation agreement. 164. If Buyer defaults in any of the agreements hereunder, Seller may terminate this Purchase Agreement under the 165. provisions of either MN Statute 559.21 or MN Statute 559.217, whichever is applicable. If either Buyer or Seller defaults 166. in any of the agreements hereunder or there exists an unfulfilled condition after the date specified for fulfillment, either 167. party may cancel this Purchase Agreement under MN Statute 559.217, Subd. 3. Whenever it is provided herein that 168. this Purchase Agreement is canceled, said language shall be deemed a provision authorizing a Declaratory Cancellation 169. under MN Statute 559.217, Subd. 4. 170. If this Purchase Agreement is not canceled or terminated as provided hereunder, Buyer or Seller may seek actual 171. damages for breach of this Purchase Agreement or specific performance of this Purchase Agreement; and, as to 172. specific performance, such action must be commenced within six (6) months after such right of action arises. 173. BUYER HAS THE RIGHT TO A WALK-THROUGH REVIEW OF THE PROPERTY PRIOR TO CLOSING TO 174. ESTABLISH THAT THE PROPERTY IS IN SUBSTANTIALLY THE SAME CONDITION AS OF THE DATE OF 175. THIS PURCHASE AGREEMENT. 176. BUYER HAS RECEIVED A (check any that apply): [] DISCLOSURE STATEMENT: SELLER'S PROPERTYOR A 177. ❑X DISCLOSURE STATEMENT.' SELLER'S DISCLOSURE ALTERNATIVES FORM. 178. DESCRIPTION OF PROPERTY CONDITION: See Disclosure Statement: Seller's Property or Disclosure Statement: 179. Seller's Disclosure Alternatives for description of disclosure responsibilities and limitations, if any, 180. BUYER HAS RECEIVED THE INSPECTION REPORTS, IF REQUIRED BY MUNICIPALITY. 181. BUYER IS NOT RELYING ON ANY ORAL REPRESENTATIONS REGARDING THE CONDITION OFTHE PROPERTY 182. AND ITS CONTENTS. nnneon . ,o,.„ /#oriorirss ns PURCHASE AGREEMENT 183. Page 5 Date 2/27/2014 184. Property located at 6064 Xylon Avenue N New Hope IMI 55428 185. (Check appropriate boxes.) 186. SELLER WARRANTS THAT THE PROPERTY IS EITHER DIRECTLY OR INDIRECTLY CONNECTED TO 187, CITY SEWER X YES ❑ NO / CITY WATER ❑X YES ❑ NO 188. SUBSURFACE SEWAGE TREATMENT SYSTEM 189. SELLER ❑ DOES ❑X DOES NOT KNOW OF A SUBSURFACE SEWAGE TREATMENT SYSTEM ON OR -- -------------(Check one.)_ ---------------- 190. SERVING THE PROPERTY. (If answer is DOES, and the system does not require a state permit, see Disclosure 191. Statement: Subsurface Sewage Treatment System.) 192. PRIVATE WELL 193. SELLER ❑DOES ❑X DOES NOT KNOW OF A WELL ON OR SERVING THE PROPERTY. ------------- ------ (Check one.h---"'------------- 194. (If answer is DOES and well is located on the Property, see Disclosure Statement: Well.) 195. THIS PURCHASE AGREEMENT ❑ IS ❑X IS NOT SUBJECT TO AN ADDENDUM TO PURCHASE AGREEMENT ---------(Check one.) -------- 196. SUBSURFACE SEWAGE TREATMENT SYSTEM AND WELL INSPECTION CONTINGENCY. 197. (If answer is IS, see attached Addendum.) 198. IF A WELL OR SUBSURFACE SEWAGE TREATMENT SYSTEM EXISTS ON THE PROPERTY, BUYER HAS 199. RECEIVED ADISCLOSURE STATEMENT. .WELL AND/OR ADISCLOSURE STATEMENT.• SUBSURFACE SEWAGE 200. TREATMENT SYSTEM. 201. NOTICE REGARDING PREDATORY OFFENDER INFORMATION: Information regarding the predatory offender 202. registry and persons registered with the predatory offender registry under MN Statute 243.166 maybe obtained 203. by contacting the local law enforcement offices in the community where the Property is located or the Minnesota 204. Department of Corrections at (651) 361-720%.or from the Department of Corrections web site at 205. www.corr.state.mn.us. 205. HOME PROTECTION/WARRANTY PLAN: Buyer and Seller are advised to investigate the various home protection/ 207. warranty plans available for purchase. Different home protection/warranty plans have different coverage options, 208. exclusions, limitations and service fees. Most plans exclude pre-existing conditions. (Check one.) 209. ❑ A Home Protection/Warranty Plan will be obtained and paid by❑ BUYER ❑ SELLER to be issued by _.--------- (Check one.) ------------ ._ 210. at a cost not to exceed $ 211. ❑ There will be no Home Protection/Warranty Plan as part of this Agreement. 212. 213, Anthony J Hawk (Licensee) 214, Hawk Realty Company _ (Real Estate Company Name) 215, Joash Omandhi (Licensee) NOTICE is ❑X Seller's Agent ❑ Buyer's Agent ❑ Dual Agent ❑ Facilitator. ----------- - - ------------------(Check one.)- ----------------------------- ____------------------ is ❑ Seller's Agent ❑X Buyer's Agent ❑ Dual Agent ❑ Facilitator. ------------------------------------- --- __-------- (Check one.} -------------------------- ---------- __---------_-. 216, Softlanding Real Estate (Real Estate Company Name) 217. THIS NOTICE DOES NOT SATISFY MINNESOTA STATUTORY AGENCY DISCLOSURE REQUIREMENTS. MN:PA-5 (8/13) /Osta/r,t Forms PURCHASE AGREEMENT 218. Page 6 Date 2/27/2014 219. Property located at 6064 Xylon Avenue N New Hope NN 55428 220. DUAL AGENCY REPRESENTATION 221. PLEASE CHECK ONEOFTHE FOLLOWING SELECTIONS: 222. ❑X Dual Agency representation DOES NOT apply in this transaction. Do not complete lines 223-239. 223. ❑ Dual Agency representation DOES apply in this transaction. Complete the disclosure in lines 224-239. 224. Broker represents both the Seller(s) and the Buyer(s) of the Property involved in this transaction, which creates a 225. dual agency. This means that Broker and its salespersons owe fiduciary duties to both Seller(s) and Buyer(s). Because 226. the parties may have conflicting interests, Broker and its salespersons are prohibited from advocating exclusively for 227. either party. Broker cannot act as a dual agent in this transaction without the consent of both Seller(s) and Buyer(s). 228. Seller(s) and Buyer(s) acknowledge that 229. (1) confidential information communicated to Broker which regards price, terms, or motivation to buy or sell will 230. remain confidential unless Seller(s) or Buyer(s) instructs Broker in writing to disclose this information. Other 231. information will be shared; 232. (2) Broker and its salespersons will not represent the interest of either party to the detriment of the other; and 233. (3) within the limits of dual agency, Broker and its salespersons will work diligently to facilitate the mechanics of 234. the sale. 235. With the knowledge and understanding of the explanation above, Seller(s) and Buyer(s) authorize and instruct Broker 236. and its salesperson to act as dual agents in this transaction. 237. Seller Buyer 238. Seller - Buyer 239. Date Date 240. CLOSING COSTS: Buyer or Seller may be required to pay certain closing costs, which may effectively increase the 241. cash outlay at closing or reduce the proceeds from the sale. 242. ENTIRE AGREEMENT: This Purchase Agreement -and any addenda or amendments signed by the parties shall 243. constitute the entire agreement between Buyer and Seller. Any other written or oral communication between Buyer and 244. Seller, including, but not limited to, e-mails, text messages, or other electronic communications are not part of this 245. Purchase Agreement, This Purchase Agreement can be modified or canceled only in writing signed by Seller and 246. Buyer or by operation of law. All monetary sums are deemed to be United States currency for purposes of this Purchase 247. Agreement. 248. ELECTRONIC SIGNATURES: The parties agree the electronic signature of any party on any document related to this 249. transaction constitute valid, binding signatures. 250. FINAL ACCEPTANCE: To be binding, this Purchase Agreement must be fully executed by both parties and a copy 251. must be delivered. 252. SURVIVAL: All warranties specified in this Purchase Agreement shall survive the delivery of the deed or contract 253. for deed. 254. OTHER: 255. 256. 257. 258. 259. 260, _ 261. MN:PA-6 (8/13) 263. Property located at6064 xylon Avenue N PURCHASE AGREEMENT 262. Page 7 Date _._ 2/27/2014 Tin 264. ADDENDA AND PAGE NUMBERING: Attached addenda area part of this Purchase Agreement. 265. Enter total number of pages of this Purchase Agreement, including addenda, on line two (2) of page one (1). 266. NOTE: Disclosures and optional Arbitration Agreement are not part of this Purchase Agreement and should 267. not be part of the page numbering. 268. I, the owner of the Property, accept this Purchase 269. Agreement and authorize the listing broker to withdraw 270. said Property from the market, unless instructed 271. otherwise in writing. 272. 1 have reviewed all pages of this Purchase Agreement. 273. ❑ If checked, this Purchase Agreement is subject to 274. attached Addendum to Purchase Agreement: 275. Counteroffer. 276. X (Seller's Signature) _ (Date) 277. X (Seller's Printed Name) 278. X (Marital status) 279. X (Seller's Signature) (Date) 280. X (Sellers Printed Name) 281. X (Marital Status) I agree to purchase the Property for the price and on the terms and conditions set forth above I have reviewed all pages of this Purchase Agreement. (Buyer's Signa, re) (Date) ll (Buyer's Printed Name) X (Marital Status) X (Buyer's Signature) X (Buyer's Printed Name) X (Marital Status) 282. FINAL ACCEPTANCE DATE: — 283. is the date on which the fully executed Purchase Agreement is delivered. (Date) The Final Acceptance Date 284. THIS IS A LEGALLY BINDING CONTRACT BETWEEN BUYER(S) AND SELLER(S). 285. IFYOU DESIRE LEGAL OR TAX ADVICE, CONSULT AN APPROPRIATE PROFESSIONAL. 286. 1 ACKNOWLEDGE THAT I HAVE RECEIVED AND HAVE HADTHE OPPORTUNITYTO REVIEW THE DISCLOSURE 287. STATEMENT. ARBITRATIONDISCLOSUREANDRESIDENTIALREAL PROPERTYAR81TRATIONAGREEMENT, 288. WHICH IS AN OPTIONAL, VOLUNTARY AGREEMENT AND IS NOT PART OF THIS PURCHASE AGREEMENT. 289 SELLER(S) _ _ BUYER(S)___ C " ' John Og ro 290. SELLER(S)------------,--- BUYER(S) MN:PA-7 (8/13) i0�g rms ADDENDUM TO PURCHASE AGREEMENT: FHA INSURED MORTGAGE FINANCING This form approved by the Minnesota Association of REALTORS which disclaims any liability arising out of use or misuse of this form. © 2013 Minnesota Association of REALTORS', Edina, MN 1. Date 02/27/14 2. Page 3. Addendum to Purchase Agreement between parties, dated Feb 27 20 14 pertaining 4. to the purchase and sale of the Property at 6064 Xylon Avenue N 5. New Hope, MN 55428 6. Buyer shall apply for and secure, at Buyer's expense, an FHA INSURED (e. g.. Fixed. ARM) 7. in the amount stated in this Purchase Agreement, amortized monthly over a period of not more than mortgage 8. years, with an initial mortgage interest rate at no more than Market percent (%) per annum. The mortgage 9. application IS TO BE MADE WITHIN FIVE (5) BUSINESS DAYS after the Final Acceptance Date of this Purchase 10. Agreement. Buyer agrees to use best efforts to secure a commitment for acceptance for such financing and to execute 11. all documents required to consummate said financing. 12. SELLER'S CONTRIBUTIONS TO BUYER'S COSTS: Seller ❑X IS ❑ IS NOT contributing to Buyer's costs. If IS, see --------(Check one.) ------- 13. attached Seller's Contributions to Buyer's Costs Addendum. 14. FINANCING CONTINGENCY: This Purchase Agreement is contingent upon the following and applies to the first 15. mortgage and any subordinate financing. 16. (Check one.) 17. X❑ If Buyer cannot secure the financing specified in this Purchase Agreement, and this Purchase Agreement does 18. not close on the closing date specified, this Purchase Agreement is canceled. Buyer and Seller shall immediately 19. sign a Cancellation of Purchase Agreement confirming said cancellation and directing all earnest money to be 20. refunded to Buyer. 21. ❑ Buyer shall provide Seller, or licensee representing or assisting Seller, with the Written Statement, on 22. or before 20 23. For purposes of this Contingency, "Written Statement" means a Written Statement prepared by Buyer's mortgage 24. originator(s) or lender(s) after the Final Acceptance Date that Buyer is approved for the loan(s) specified in this 25. Purchase Agreement, including both the first mortgage and any subordinate financing, if any, and stating that an 26. appraisal, satisfactory to the lender(s), has been completed and stating conditions required by lenders) to close 27. the loan. 28. Upon delivery of the Written Statement to Seller, or licensee representing or assisting Seller, the responsibility 29, for satisfying all conditions, except work orders, required by mortgage originator(s) or lender(s) are deemed 30. accepted by Buyer. Upon delivery of the Written Statement, if this Purchase Agreement does not close on the 31. stated closing date for ANY REASON relating to financing, otherthan Seller's failure to complete work orders to the extent 32. required by this Purchase Agreement, including but not limited to interest rate and discount points, if any, Seller 33. may, at Seller's option; declare this Purchase Agreement canceled, in which case this Purchase Agreement is 34. canceled. If Seller declares this Purchase Agreement canceled, Buyer and Seller shall immediately sign a 35. Cancellation of Purchase Agreement confirming said cancellation and directing all earnest money paid hereunder 36. to be forfeited to Seller as liquidated damages. In the alternative, Seller may seek all other remedies allowed by 37. law. 38. If the Written Statement is not provided by the date specified on line 22, Seller may, at Seller's option, declare this 39. Purchase Agreement canceled by written notice to Buyer at any time prior to Seller receiving the Written Statement 40, in which case this Purchase Agreement is canceled. In the event Seller declares this Purchase Agreement canceled, 41. Buyer and Seller shall immediately sign a Cancellation of Purchase Agreement confirming said cancellation and 42. directing all earnest money paid hereunder to be refunded to Buyer. MN:APA:FHA-1 (8/13) /tart MS- ADDENDUM TO PURCHASE AGREEMENT: FHA INSURED MORTGAGE FINANCING 43. Page 44. Property located at 6064 Xylon Avenue N New Hope, NN 55428 45. If the Written Statement is not provided and Seller has not previously canceled this Purchase Agreement, this 46. Purchase Agreement is canceled as of the closing date specified in this Purchase Agreement. Buyer and Seller 47. shall immediately sign a Cancellation of Purchase Agreementconfirming said cancellation and directing all earnest 48. money paid hereunder to be refunded to Buyer. 49. MORTGAGE INSURANCE PREMIUMS ("MIP"): Pursuant to federal regulations, a one-time MIP must be paid to FHA 50. at the closing of this transaction. The said MIP will increase the mortgage amount unless paid in cash at the closing. 51. This provision may not be applicable to condominium transactions. 52. LOCKING OF MORTGAGE INTEREST RATE ("RATE"): The Rate shall be locked with the lender(s) by Buyer 53. (check one): 54. 0 WITHIN FIVE (5) BUSINESS DAYS OF FINAL ACCEPTANCE DATE OFTHIS PURCHASE AGREEMENT; OR 55. ❑ AT ANY TIME PRIOR TO CLOSING OR AS REQUIRED BY LENDER(S). 56. FHA COMMITMENT WORK ORDERS: Nothing in this Purchase Agreement shall be construed as a warranty that Seller 57. shall make repairs required by the FHA commitment. However, Seller agrees to pay up to $ 58. to make repairs as required by the FHA commitment. If the FHA commitment is subject to any work orders for which 59. the cost of making said repairs shall exceed this amount, Seller shall have the following options: 60. (a) making the necessary repairs; or 61. (b) negotiating the cost of making said repairs with Buyer; or 62. (c) declaring this Purchase Agreement canceled, in which case this Purchase Agreement is canceled. Buyer and Seller 63. shall immediately sign a Cancellation of Purchase Agreement confirming said cancellation and directing all earnest 64, money paid hereunder to be refunded to Buyer, unless Buyer provides for payment of the cost of said repairs or 65. escrow amounts related thereto above the amount specified on line 57 of this Addendum. 66. []SELLER ❑ BUYER agrees to pay any reinspection fee required by Buyer's lender(s). ----------(Check one.) - LENDER PROCESSING FEES: Seller agrees to pay miscellaneous processing fees which the lender(s) cannot charge 68. to Buyer, not to exceed $ 69. FHA ESCAPE CLAUSE: "It is expressly agreed that, notwithstanding any other provisions of this contract, the purchaser 70. shall not be obligated to complete the purchase of the Property described herein or to incur any penalty by forfeiture of 71. earnest money deposits or otherwise, unless the purchaser has been given in accordance with HUD/FHA or DVA 72. requirements a written statement by the Federal Housing Commissioner, Department of Veterans' Affairs or a Direct 73. Endorsement lender setting forth the appraised value of the Property as not less than $ 180, 000.00 (sale price) 74. The purchaser shall have the privilege and option of proceeding with consummation of the contract without regard 75. to the amount of the appraised valuation. The appraised valuation is arrived at to determine the maximum mortgage 76. the Department of Housing and Urban Development will insure; HUD does not warrant the value nor the condition of 77. the Property. The purchaser should satisfy himself/herself that the price and condition of the Property are 78. acceptable" 79. HOME INSPECTION: HUD requires mortgage lenders of FHA insured mortgages to provide the form For Your Protection: 80. Get a Home Inspection. 81. OTHER: 82. C Y" (Seller) (Date) (Buyer) John Ogaro (Date) 83. (Seller) (Date) (Buyer) (Date) 84. THIS IS A LEGALLY BINDING CONTRACT BETWEEN BUYER(S) AND SELLER(S). 85. IF YOU DESIRE LEGAL OR TAX ADVICE, CONSULT AN APPROPRIATE PROFESSIONAL. MN:APA:FHA-2 (8113) i orms t ADDENDUM TO PURCHASE AGREEMENT: SELLER'S CONTRIBUTIONS TO BUYER'S COSTS This form approved by the Minnesota Association of REALTORS'', which disclaims any liability arising out of use or misuse of this form. © 2013 Minnesota Association of REALTORS"'.Edina, MN 1. Date 02/27 2. Page 3. Addendum to Purchase Agreement between parties, dated Feb 27 20 14 , pertaining to 4. the purchase and sale of the Property at — 5064 xylon Avenue H 5. _ New Hope 6. Seller agrees to pay, at closing, up to (check one): 7. ❑ $ 3.X❑ 3 percent (%) of the sale price 9. ❑ percent (%) of the mortgage amount 10. towards Buyer's closing fees, title service fees, title searches, title examinations, abstracting, lender's title insurance, 11. owner's title insurance, prepaid items, other Buyer's costs allowable by lender, if any, and/or mortgage discount points. 12. Any amount of Seller's contribution that exceeds Buyer's allowable costs, or which cannot be used because the Seller's 13. contribution exceeds the maximum Seller contribution allowed by law or by mortgage requirements, shall be retained 14. by the Seller. 15. 16. 17 IM NOTE: The amount paid by Seller cannot exceed the maximum Seller contribution allowed by FHA, DVA or lender. All funds paid by Seller on behalf of Buyer must be stated on the HUD -1 at closing Vb (Seller) (Date) (Buyer) John 09 ro (Date) (Seller) (Date) (Buyer) (Date) 19. THIS IS A LEGALLY BINDING CONTRACT BETWEEN BUYER(S) AND SELLER(S). 20. IF YOU DESIRE LEGAL OR TAX ADVICE, CONSULT AN APPROPRIATE PROFESSIONAL. MN:APA:SCBC (8/13) i ms; ADDENDUM TO PURCHASE AGREEMENT: INSPECTION CONTINGENCY This form approved by the Minnesota Association of REALTORS', which disclaims any liability arising out of use or misuse of this form. © 2013 Minnesota Association of REALTORS`, Edina, MN 1. Date 2. Page 3. THE PROPERTY, IF NOT NEW, CANNOT BE EXPECTED TO BE IN NEW CONDITION. 4. ROUTINE MAINTENANCE ITEMS ARE NOT PART OFTHIS ADDENDUM. 5. Addendum to Purchase Agreement between parties, dated 6. to the purchase and sale of the Property at 6064 xylon Avenue 20 14 , pertaining 8. This Purchase Agreement is contingent upon any inspection(s) of the Property obtained by Buyer to determine its 9. condition, including any non -intrusive testing or any intrusive testing as allowed pursuant to this Agreement. 10. Any inspection(s) shall be done by an Inspector(s) of Buyer's choice. The Inspector(s) should be qualified to do the 11. inspection(s), as evidenced by a license or professional designation. Buyer shall satisfy Buyer as to the qualifications 12. of the Inspector(s). 13. Said inspection(s) shall be at Buyer's sole expense. 14 Seller agrees to make the Property reasonably available for said inspection(s). 15. Any inspection(s) or tests) done by FHA, DVA or any other governmental unit shall be done and paid for in accordance 16. with the applicable regulations and are not part of this Addendum. 17. Buyer shall not have the right to do intrusive testing without the prior written authorization of Seller. 18. For purposes of this form, "intrusive testing" shall mean any testing, inspection(s) or investigation(s) that changes the -19. Property from its original condition or otherwise damages the Property. 20. Seller F]DOES ❑X DOES NOT agree to allow Buyer to perform intrusive testing or inspection(s). __------------ (Check one.) -__-_---- 21. If answer is DOES, Buyer agrees that the Property shall be returned to the same condition it was in prior to Buyer's 22. intrusive Testing at Buyers sole expense. 23. For the purposes of this Addendum, "Business Days" shall end at 11:59 p.m. and do not include Saturdays, 24. Sundays and state and federal holidays. 25. All inspection(s) shall be done within 10 Business Days of Final Acceptance Date of this Purchase Agreement. 26. Buyer shall have these options following inspection(s) 27. (1) If Buyer, or licensee representing or assisting Buyer, identifies any issues pertaining to the Property resulting 2& from the inspection(s) and intends to negotiate the identified issues with Seller, then Buyer, or licensee 29. representing or assisting Buyer, shall notify Seller, or licensee representing or assisting Seller, in writing, 30. describing the issues and proposed remedy, within Business Days after expiration of the time 31. period specified on line 25. 32. If Buyer, or licensee representing or assisting Buyer, notifies Seller, or licensee representing or assisting 33. Seller, of the identified issues and proposed remedy, and if within Business Days after such 34. notice Buyer and Seller have not agreed in writing to a remedy of the identified issues, this Purchase Agreement 35. is canceled without further notice required. Buyer and Seller shall immediately sign a Cancellation of 36. Purchase Agreement confirming said cancellation and directing all earnest money paid hereunder to be 37, refunded to Buyer, and thereafter neither party shall have any further liability to the other. 38. (2) Notwithstanding any provision to the contrary or any notice given, Buyer may unilaterally waive any issues, 39. providing that Buyer, or licensee representing or assisting Buyer, notifies Seller, or licensee representing or 40. assisting Seller, of waiver in writing, within the time specified on line 33. MN:APA:IC-1 (8/13) / orms ADDENDUM TO PURCHASE AGREEMENT: INSPECTION CONTINGENCY 41, Page 42. Property located at 6064 %ylon Avenue N New Hope NN 55428 43. (3) Notwithstanding any other provision of this Purchase Agreement, Buyer may, based on the inspection(s), 44. declare this Purchase Agreement canceled by written notice to Seller, or licensee representing or assisting 45. Seller, within Business Days after expiration of the time period specified on line 25, in which case 46. this Purchase Agreement is canceled. 47. In the event Buyer declares this Purchase Agreement canceled, Buyer and Seller shall immediately sign 48. a Cancellation of Purchase Agreement confirming said cancellation and directing all earnest money paid 49. hereunder to be refunded to Buyer. 50. If Buyer fails to have the inspection(s) performed within the time specified in line 25, or does not notify Seller, or licensee 51. representing or assisting Seller, of Buyer's decision within the time specified in lines 30 and 45, then this Contingency 52. shall be deemed removed and this Purchase Agreement shall be in full force and effect. 53. Seller, or licensee representing or assisting Seller, 0 SHALL [-]SHALL NOT have the right to continue to offer -------------------(Check one.) ----------------- 54. the Property for sale until this Contingency is removed 55. OTHER: 56. 57. 58. 59. 60. 61. 62. 63. 64. (Seller) 65. (Seller) (Date) (Date) DA -1-k (Buyer) John 0 Taro (Date) (Buyer) 66. THIS IS A LEGALLY BINDING CONTRACT BETWEEN BUYER(S) AND SELLER(S). 67. IF YOU DESIRE LEGAL OR TAX ADVICE, CONSULT AN APPROPRIATE PROFESSIONAL. MN:APAIC-2 (8/13) (Date) fr p" °t? ®srasas -' DISCLOSURE STATEMENT: SELLER'S DISCLOSURE ALTERNATIVES Thio krm approved by ow Minrwisofa Asst km of REALTORS°, wWh disuWm any liab ty ansirg out d use w misuse of Ow form. ® 2013 Mbwte Assn bon of REALTORS®, Edrta, MN 1. Date '�' y- I 2. Page 1 of 5 pages: RECORDS AND 3. REPORTS, IF ANY, ARE ATTACHED HERETO AND 4. MADE A PART HEREOF 5. Property located at 6064 Xy1m ave. H. 6. City of Xa Hope , County of $®meotn , State of Minnesota, 7. NOTICE: Sellers of residential property, with limited exceptions, are obligated to satisfy the requirements of MN Statutes 6. 513.52 through 513.60. To comply with the statute, Seller must provide either a written disclosure to the 9, prospective Buyer (see SelWa Property Disclosure "or satisfy one of the following two options. 10. Disclosures made herein, If any, are not a warranty or guarantee of any kind by Seller or licensee(s) representing or 11. assisting any party in this transaction and are no a substitute for any inspections or warranties the party(ies) may wish 12. to obtain. 13. (Select ow option =*) 14. 1) ❑ QUALIFIED 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 parry. 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. and dated 20 26. Seller discloses to Buyer the following material facts known by Seller that contradict any information included 27. in the above referenced inspection report. 28. 29. 30. 31. Seller discloses to Buyer the following material facts known by Seller that are not included in the above 32. referenced inspection report. 33. 34. 35. 36. 211 WAIVER: The written disclosure required may be waived it 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: It 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 taw. 45. Waiver of the disclosure required under MN Statutes 51352 through 513.60 does not waive, limit or 46. abridge any obligation for Seller disclosure treated by any other law. MN:DS:SDA-1 (1013) DISCLOSURE STATEMENT. SELLER'S DISCLOSURE ALTERNATIVES 47. Page 2 48. Property located a4 6064 Yv1� Hw ffi item Hov® 55648 49. OTHER REQUIRED DISCLOSURES: 50. NOTE: in addition to electing one of the above alternatives to the material fad disclosure. Minnesota law also 51. requires sellers to provide other disclosures to prospective buyers, such as those disclosures fisted below. 52. Additionally, there may be other required disclosures by federal, state, local or other governmental entities II I111'I 54. A. SUBSURFACE SEWAGE TREATMENT SYSTEM DISCLOSURE: (A subsurface sewage treatment system 55. disclosure is required by MN Statute 115.55.) (Check appropriate box.) 56. Seller certifies that Seller p 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. Subsurface Sewage Treatment System Disclosure Statement.) 59. ❑ There is a subsurface sewage treatment system on or serving the above-described real property. 60. (Sea SuGsuff" Sewage Treatment System Disclosure Statement) 61. ❑ There is an abandoned subsurface sewage treatment system on the above-described real property. 62. (Sea Subsurface Sewage Treatment System Disclosure Statement.) 63. B. PRIVATE WELL DISCLOSURE: (A well disclosure and Certificate are required by MN Statute 1031.235.) 64. (C cappropriate box.) . 65. jycY�l Seller 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 Well Disclosure Statement) 68. Are there any wells serving the above-described property that are not located on the property? ❑ Yes ❑ No 69. Contaminated Well: Is there a well on or serving the property that contains contaminated water? ❑Yes ❑ No 70. To your knowledge, is the property in a Special Well Construction Area? ❑Yes ❑ No 71. Comments: 72. 73. 74. C. VALUATION EXCLUSION DISCLOSURE: (Required by MN Statute 273.11, Subd. 16) 75. There ❑ IS (alI IS NOT an exclusion from market value for home improvements on this property. Any valuation ma)-- 76. exclusion shah terminate upon sale of the property, and the property's estimated market value forprop" tax purposes 77. shall increase. If a valuation exclusion exists, Buyers are encouraged to look into file resulting tax 78. consequences. 79. Additional comments: 80. 81. 82, D. METHAMPHETAMINE PRODUCTION DISCLOSURE: 83. (A methamphetamine production disclosure is required by MN Statute 152.0275, Subd. 2 (m).) 84. Seller is not aware of any methamphetamine production that has occurred on the property. 85. ❑ Seller is aware that methamphetamine production has occurred on the property. 86. (See Methamphetamine Production Disclosure Statement) MN:DS:SDA-2 (12(13) DISCLOSURE STATEMENT: SELLER'S DISCLOSURE ALTERNATIVES 87. Page 3 88. Property located at 6061 rvlon av® r Aw aoes ss,tse 89. E. RADON DISCLOSURE: 90. (The following Seller disclosure satisfies MN Statute 144.496.) 91. RADON WARNING STATEMENT: The Minnesota Department of Health strongly recommends that ALL 92. homebuyers have an indoor radon test performed prior to purchase or taking occupancy, and recommends having 93. the radon levels mitigated it elevated radon concentrations are found. Elevated radon concentrations can easily 94. be reduced by a qualified, certified, or licensed, if applicable, radon mitigator. 95. Every buyer of any interest in residential real property is notified that the property may present exposure to 96. dangerous levels of indoor radon gas that may place occupants at risk of developing radon -induced lung cancer. 97. Radon, a Class A human carcinogen, is the leading cause of lung cancer in nonsmokers and the second leading 98. cause overall. The seller of any interest in residential real property is required to provide the buyer with any 99. information on radon test results of the dwelling. 100. RADON IN REAL ESTATE: By signing this Statement, Buyer hereby acknowledges receipt of the Minnesota 101. Department of Health's publication entitled Radon In Real Estate Transections, which can be found at 102. www.health.state.mn.us/dies(ehAndoorair/Fadon/mroalestateweb.pdf. 103. A seller who fails to disclose the information required under MN Statute 144.496, and is aware of material fads 104. pertaining to radon concentrations in the property, is liable to the Buyer. A buyer who is injured by a violation of MN 105. Statute 144.496 may bring a civil action and recover damages and receive other equitable relief as determined by 106. the court. Any such action must be commenced within two years after the date on which the buyer dosed the 107. purchase or transfer of the real property. 108. SELLER'S REPRESENTATIONS: The following are representations made by Seller to the extent of Seger's actual 109. knowledge. �,/ 110. (a) Radon test(s) ❑ HAVEIXI HAVE NOT occurred on the property. ( ane.) 111. (b) Describe arty known radon concentrations, mitigation, or remediation. NOTE: Seller shall aftach the most 112. current records and reports pertaining to radon concentration within the dwelling: 113. 114. 115. 116. (c) There ❑ IS IS NOT a radon mitigation system currently installed on the Property. 117. If "IS," Seller shall disclose, if known, information regarding the radon mitigation system, including system 118. description and documentation. 119. 120. 121. M. F. NOTICE REGARDING AIRPORT ZONING REGULATIONS: The property may be in or near an airport safety zone 123. with zoning regulations adopted by the governing body that may affect the property. Such zoning regulations are 124. filed with the county recorder in each county where the zoned area los lasted. If you would like to determine if such 125. zoning regulations affect the property, you should contact the county recorder where the zoned area is located. 126. G. NOTICE REGARDING CARBON MONOXIDE DETECTORS: 127. MN Statute 299F.51 requires Carbon Monoxide Detectors to be located within ten (10) feet from all sleeping 128. rooms. Carbon Monoxide Detectors may or may not be personal property and may or may not be included in the 129. sale of the hone. MN:DS:SDA-3 (12113) DISCLOSURE STATEMENT: SELLER'S DISCLOSURE ALTERNATIVES 130. Page 4 131. Property located at ansa zyloa - . a. xav BOD®, 5542e 132. H. WATER INTRUSION AND MOLD GROWTH: Recent studies have shown that various forms of water intrusion 133. affect many homes. Water intrusion may occur from exterior moisture entering the home and/or interior moisture 134. leaving the home. 135. Examples of exterior moisture sources may be 136. • improper flashing around windows and doors, 137. improper grading, 136. • flooding, 139. a roof leaks. 140. Examples of interior moisture sources may be 141. plumbing leaks, 142. m condensation (caused by indoor humidity that Is too high or surfaces that are too cold), 143. • overflow from tubs, sinks or toilets, 144. o firewood stored indoors, 145. • humidifier use, 146. a inadequate venting of kitchen and bath humidity 147. ® improper venting of clothes dryer exhaust outdoors (including electrical dryers), 148. a line -drying laundry indoors, 149. houseplants -watering them can generate large amounts of moisture. 150. In addition to the possible structural damage water intrusion may do to the property, water intrusion may also result 151. in the growth of mold, mildew and other fungi. Mold growth may also cause structural damage to the property. 152. Therefore, lt is very important to detect and remediate water intrusion problems. 153. Fungi are present everywhere in our erwiromnent, both indoors and outdoors. Marry molds are beneficial to humans. 154. However, molds have the ability to produce mycotoxins that may have a potential to cause serious health problems, 155. particularly in some immunocompromised individuals and people who have asthma or allergies to mold. 156. To complicate matters, mold growth is often difficult to detect, as it frequently grows within the wall structure. if you 157. have a concern about water intrusion or the resulting mold(mildow/fungi growth, you may want to consider having 158. the property inspected for moisture problems before entering into a purchase agreement or as a condition of your 159. purchase agreement. Such an analysis is particularly advisable it you observe staining or any musty odors on the 160. property. 161. For additional information about water intrusion, indoor air quality, moisture or mold issues, please view the 162. Minnesota Association of REALTORS" Desktop Reference Guide at www.mnrealtor.com. 163. 1. NOTICE REGARDING PREDATORY OFFENDER INFORMATION: Information regarding the predatory 164. offender registry and persons registered with the predatory offender registry under MN Statute 243.166 165. may be obtained by contacting the load law enforcernent Offices In the community where the property is 166. located or theMMnesota Department o4 Corrections at(651)351-7200, orfrom the DepartmentofCorrections 167. web site at www.corr.state.mn.us. WIND SDA -4 (12113) DISCLOSURE STATEMENT: SELLER'S DISCLOSURE ALTERNATIVES 168. Page 5 169. Property located at soca scion no®. H N. 90 2 SS428 170. J. SELLER'S STATEMENT: 171. (To be signed at time oflisfing.) 172. Seller(s) hereby authorizes any licensee(s) representing or assisting any party(ies) in this transaction to provide 173, a copy of this Disclosure Statement to any person or entity in connection with any actual or anticipated sale of the 174. property. A seller may provide this Disclosure Statement to a real estate licensee representing or assisting a 175. prospective buyer. The Disclosure Statement provided to the real estate licensee representing or assisting a 176. prospective buyer is considered to have been provided to the prospective buyer. If this Disclosure Statement is 177. provided to the real estate licensee representing or assisting tfv., n,,..e, w........, __._._ • PrOviae a COPY TO the PfOSpeCINB buver. 179. QUALIFIED THIRD -PARTY INSPECTION: It Seller has made a disclosure under the Qualified Third -Party 180. Inspection, Seller is obligated to disclose to Buyer in writing of any new or changed information of which Seller 181. is aware that could adversely and significantly affect the Buyers use or enjoyment of the property or any intended 182. use of the property that occur up to the time of closing. To disclose now or changed facts, please use the Amendment 183, to Disclosure Statement form. 184. WAIVER: If Seller and Buyer agree to waive the seller disclosure requirement, Seller is NOT obligated to disclose 185. and will NOT disclose any new or changed information regarding material fads. 186. OTHER REQUIRED DWLOSURES (Sections A-E): Whether Seller has elected a Oualified-Third Part Inspection 187. or Waiver, Seller is obligated to notify Buyer, in writing, of any new or changed information regarding Other Required 188. Disclosures up to the time of closing. To disclose neve or changed fads, please use the Amendment to Sellers 189. Disclosure form. ioaeel (saes.) (D�) 191. K. BUYER'S ACKNOWLEDGEMENT: 192. (To be signed at time of purchase agreement.) 193. VWe, the Buyer(s) of the property, acknowledge receipt of this Sellers Disclosure Alternatives and agree to 194. the sellers disclosure option selected in this form.1/We further agree that no representations regarding material 195. fads have been made, other than those made in this form. 196. `L�2�(`j�� (Data) 197. 198. WDSMA-5 (12113) LISTING BROKER AND LICENSEES MAKE NO REPRESENTATIONS HEREIN AND ARE NOT RESPONSIBLE FOR ANY CONDITIONS EXISTING ON THE PROPERTY. (Dale) GORDON L. 3ENSEN' MELANIE P. PERSELLIN" STEVEN A. SONDRALL STAGY A. WOODS' 'Real Property Law Specialist Certified By The Minnesota State Bar Association 'Licensed in Illinois/Colorado 'Qualified Neutral Mediator under Rule 114 JENSEN SONDRALL & PERSELLIN, P.A. Attorneys At Law 8525 EDINBROOK CROSSING, STE. 201 BROOKLYN PARK, MINNESOTA 55443-1968 TELEPHONE(763)424-8811• TELEFAX (763)493-5193 e-mail law@jspattorneys.com Writer's Direct Dial No.: (763) 201-0265 e-mail saw@/spattorneys.com June 17, 2013 Valerie Leone City Clerk City of New Hope 4401 Xylon Avenue North New Hope, MN 55428 Re: Owner's Policy of Title Insurance Policy No. 0-9301-2792058 Our File No. 99.10030 Dear Ms. Leone: Enclosed please find the Owner's Policy of Title Insurance issued by Stewart Title Guaranty Company for the property located at 6064 Xylon Ave. N., New Hope. Please contact me with any questions or concerns. Thank you. Very truly yours, Stacy A. Woo s Enclosure cc: Curtis Jacobsen P:Wnorno,l AWi-Client FilesTily of New Hoceone letter6-1743. doe If you assistance to resolve complaints, please call our toll free number. 1-800-729-1902. If you make a claim under ALTA Owner's Policy (6-17-06) OWNER'S POLICY OF TITLE INSURANCE ISSUED BY E. ewart® title guaranty company Any notice of claim and any other notice or statement in writing required to be given to the Company under this Policy must be given to the Company at the address shown in Section 18 of the Conditions. COVERED RISKS SUBJECT TO THE EXCLUSIONS FROM COVERAGE, THE EXCEPTIONS FROM COVERAGE CONTAINED IN SCHEDULE B, AND THE CONDITIONS, STEWART TITLE GUARANTY COMPANY, a Texas corporation (the "Company') insures, as of Date of Policy and, to the extent stated in Covered Risks 9 and 10, after Date of Policy, against loss or damage, not exceeding the Amount of Insurance, sustained or incurred by the Insured by reason of: 1. Title being vested other than as stated in Schedule A. 2. Any defect in or lien or encumbrance on the Title. This Covered Risk includes but is not limited to insurance against loss from (a) A defect in the Title caused by (i) forgery, fraud, undue influence, duress, incompetency, incapacity, or impersonation; (ii) failure of any person or Entity to have authorized a transfer or conveyance; (iii) a document affecting Title not properly created, executed, witnessed, sealed, acknowledged, notarized, or delivered; (iv) failure to perform those acts necessary to create a document by electronic means authorized by law; (v) a document executed under a falsified, expired, or otherwise invalid power of attorney; (vi) a document not properly filed, recorded, or indexed in the Public Records including failure to perform those acts by electronic means authorized by law; or (vii) a defective judicial or administrative proceeding. (b) The lien of real estate taxes or assessments imposed on the Title by a governmental authority due or payable, but unpaid. (c) Any encroachment, encumbrance, violation, variation, or adverse circumstance affecting the Title that would be disclosed by an accurate and complete land survey of the Land. The term "encroachmenf' includes encroachments of existing improvements located on the Land onto adjoining land, and encroachments onto the Land of existing improvements located on adjoining land. 3. Unmarketable Title. 4. No right of access to and from the Land. 5. The violation or enforcement of any law, ordinance, permit, or governmental regulation (including those relating to building and zoning) restricting, regulating, prohibiting, or relating to (a) the occupancy, use, or enjoyment of the Land; (b) the character, dimensions, or location of any improvement erected on the Land; (c) the subdivision of land; or (d) environmental protection if a notice, describing any part of the Land, is recorded in the Public Records setting forth the violation or intention to enforce, but only to the extent of the violation or enforcement referred to in that notice. 6. An enforcement action based on the exercise of a governmental police power not covered by Covered Risk 5 if a notice of the enforcement action, describing any part of the Land, is recorded in the Public Records, but only to the extent of the enforcement referred to in that notice. 7. The exercise of the rights of eminent domain if a notice of the exercise, describing any part of the land, is recorded in the Public Records. 8. Any taking by a governmental body that has occurred and is binding on the rights of a purchaser for value without Knowledge. aneo.��avca..,n ry K �5�jp. Chaarran of the Board 'k' Foivi PreId Authorized CouifieRignature Land Title, Inc. Company Roseville, Minnesota City, State Part 1 of Policy 0-9301-2792058 Serial No. ALTA Owner's Policy (6/17/06) ALTA Owner's Policy (6-17-06) SCHEDULE A Name and Address of Title Insurance Company: Stewart Title Guaranty Company P.O. Box 2029 Houston, Texas 77252-2029 File No.: 388985 Loan No.: 'Address Reference: 6064 Xylon Avenue North New Hope, Minnesota 55428 Amount of Insurance: $147,000.00 Date of Policy: November 30, 2012 at 10:00 AM 1. Name of Insured: Policy No.: 0-9301-2792058 City of New Hope, a Minnesota public body corporate and politic 2. The estate or interest in the Land that is insured by this policy is: Fee Simple 3. Title is vested in: City of New Hope, a Minnesota public body corporate and politic 4. The Land referred to in this policy is described as follows: Lot 2, Block 2, Hazel Hills Second Addition, Hennepin County, Minnesota. 'FOR COMPANY REFERENCE PURPOSE ONLY, NOT AN INSURING PROVISION. Countersigned: Authorized Signatory Page 1 of 1 r- tewart cme gueremy comoeny CONDITIONS (Continued) 2. CONTINUATION OF INSURANCE The coverage of this policy shall continue in force as of Date of Policy in favor of an Insured, but only so long as the Insured retains an estate or interest in the Land, or holds an obligation secured by a purchase money Mortgage given by a purchaser from the Insured, or only so long as the Insured shall have liability by reason of warranties in any transfer or con- veyance of the Title. This policy shall not continue in force in favor of any purchaser from the Insured of either (i) an estate or interest in the Land, or (ii) an obligation secured by a purchase money Mortgage given to the Insured. 3. NOTICE OF CLAIM TO BE GIVEN BY INSURED CLAIMANT The Insured shall notify the Company promptly in writing (i) in case of any litigation as set forth in Section 5(a) of these Conditions, (ii) in case Knowledge shall come to an Insured hereunder of any daim of title or interest that is adverse to the Title, as insured, and that might cause loss or damage for which the Company may be liable by virtue of this policy, or (iii) if the Title, as insured, is rejected as Unmarketable Title. If the Company is prejudiced by the failure of the Insured Claimant to provide prompt notice, the Company's liability to the Insured Claimant under the policy shall be reduced to the extent of the prejudice. 4. PROOF OF LOSS In the event the Company is unable to determine the amount of loss or damage, the Company may, at its option, require as a condition of payment that the Insured Claimant fumish a signed proof of loss. The proof of loss must describe the defect, lien, encumbrance, or other matter insured against by this policy that constitutes the basis of loss or damage and shall state, to the extent possible, the basis of calculating the amount of the loss or damage. 5. DEFENSE AND PROSECUTION OF ACTIONS (a) Upon written request by the Insured, and subject to the options contained in Section 7 of these Conditions, the Company, at its own cost and without unreasonable delay, shall provide for the defense of an Insured in litigation in which any third party asserts a claim covered by this policy adverse to the Insured. This obligation is limited to only those stated causes of action alleging matters insured against by this policy. The Company shall have the right to select counsel of its choice (subject to the right of the Insured to object for reasonable cause) to represent the Insured as to those stated causes of action. It shall not be liable for and will not pay the fees of any other counsel. The Company will not pay any fees, costs, or expenses incurred by the Insured in the defense of those causes of action that allege matters not insured against by this policy. (b) The Company shall have the right, in addition to the options contained in Section 7 of these Conditions, at its own cost, to institute and prosecute any action or proceeding or to do any other act that in its opinion may be necessary or desirable to establish the Title, as insured, or to prevent or reduce loss or damage to the Insured. The Company may fake any appropriate action under the terns of this policy, whether or not it shall be liable to the Insured. The exercise of these rights shall not be an admission of liability or waiver of any provision of this policy. If the Company exercises its rights under this subsection, it must do so diligently. (c) Whenever the Company brings an action or asserts a defense as required or permitted by this policy, the Company may pursue the litigation to a final determination by a court of competent jurisdiction, and it expressly reserves the right, in its sole discretion, to appeal any adverse judgment or order. 6. DUTY OF INSURED CLAIMANT TO COOPERATE (a) In all cases where this policy permits or requires the Company to prosecute or provide for the defense of any action or proceeding and any appeals, the Insured shall secure to the Company the right to so prosecute or provide defense in the action or proceeding, including the right to use, at its option, the name of the Insured for this purpose. Whenever requested by the Company, the Insured, at the Company's expense, shall give the Company all reasonable aid (1) in securing evidence, obtaining witnesses, prosecuting or defending the action or proceeding, or effecting settlement, and (ii) in any other lawful act that in the opinion of the Company may be necessary or desirable to establish the Title or any other matter as insured. If the Company is prejudiced by the failure of the Insured to furnish the required cooperation, the Companys obligations to the Insured under the policy shall terminate, including any liability or obligation to defend, prosecute, or continue any litigation, with regard to the matter or matters requiring such cooperation. (b) The Company may reasonably require the Insured Claimant to submit to examination under oath by any authorized representative of the Company and to produce for examination, inspection, and copying, at such reasonable times and places as may be designated by the authorized representative of the Company, all records, in whatever medium maintained, including books, ledgers, checks, memoranda, correspondence, reports, e-mails, disks, tapes, and videos whether bearing a date before or after Date of Policy, that reasonably pertain to the loss or damage. Further, if requested by any authorized representative of the Company, the Insured Claimant shall grant its permission, in writing, for any authorized representative of the Company to examine, inspect, and copy all of these records in the custody or control of a third party that reasonably pertain to the loss or damage. All information designated as confidential by the Insured Claimant provided to the Company pursuant to this Section shall not be disclosed to others unless, in the reasonable judgment of the Company, it is necessary in the administration of the claim. Failure of the Insured Claimant to submit for examination under oath, produce any reasonably requested information, or grant permission to secure reasonably necessary information from third parties as required in this subsection, unless prohibited by law or governmental regulation, shall terminate any liability of the Company under this policy as to that claim. OPTIONS TO PAY OR OTHERWISE SETTLE CLAIMS; TERMINATION OF LIABILITY In case of a daim under this policy, the Company shall have the following additional options: (a) To Pay or Tender Payment of the Amount of Insurance. To pay or tender payment of the Amount of Insurance under this policy together with any costs, attomeys' fees, and expenses incurred by the Insured Claimant that were authorized by the Company up to the time of pay- ment or tender of payment and that the Company is obligated to pay. Upon the exercise by the Company of this option, all liability and obligations of the Company to the Insured under this policy, other than to make the payment required in this subsection, shall terminate, including any liability or obligation to defend, prosecute, or continue any litigation. (b) To Pay or Otherwise Settle With Parties Other Than the Insured or With the Insured Claimant. (1) To pay or otherwise settle with other parties for or in the name of an Insured Claimant any claim insured against under this policy. In addition, the Company will pay any costs, attomeys' fees, and expenses incurred by the Insured Claimant that were author- ized by the Company up to the time of payment and that the Company is obligated to pay; or (ii) To pay or otherwise settle with the Insured Claimant the loss or damage provided for under this policy, together with any costs, attorneys' fees, and expenses incurred by the Insured Claimant that were authorized by the Company up to the time of payment and that the Company is obligated to pay. Upon the exercise by the Company of either of the options provided for in subsections (b)(i) or (ii), the Company's obligations to the Insured under this policy for the claimed loss or damage, other than the payments required to be made, shall terminate, including any liability or obligation to defend, prosecute, or continue any litigation. 8. DETERMINATION AND EXTENT OF LIABILITY This policy is a contract of indemnity against actual monetary loss or damage sustained or incurred by the Insured Claimant who has suffered loss or damage by reason of matters insured against by this policy. Page 3 Q (a) The extent of liability of the Company for loss or damage under this policy shall not exceed the lesser of (i) the Amount of Insurance; or (ii) the difference between the value of the Title as insured and the value of the Title subject to the risk insured against by this policy. (b) If the Company pursues its rights under Section 5 of these Conditions and is unsuccessful in establishing the Title, as insured, (i) the Amount of Insurance shall be increased by 10%, and (ii) the Insured Claimant shall have the right to have the loss or damage determined either as of the date the claim was made by the Insured Claimant or as of the date it is settled and paid. (c) In addition to the extent of liability under (a) and (b), the Company will also pay those costs, attorneys' fees, and expenses incurred in accordance with Sections 5 and 7 of these Conditions. LIMITATION OF LIABILITY (a) If the Company establishes the Title, or removes the alleged defect lien, or encumbrance, or cures the lack of a right of access to or from the Land, or cures the claim of Unmarketable Title, all as insured, in a reasonably diligent manner by any method, including litigation and the completion of any appeals, it shall have fully performed its obli- gations with respect to that matter and shall not be liable for any loss or damage caused to the Insured. (b) In the event of any litigation, including litigation by the Company or with the Company's consent, the Company shall have no liability for loss or damage until there has been a final determination by a court of competent jurisdiction, and disposition of all appeals, adverse to the Title, as insured. (c) The Company shall not be liable for loss or damage to the Insured for liability voluntarily assumed by the Insured in settling any claim or suit without the prior written consent of the Company. 14. ARBITRATION Either the Company or the Insured may demand that the claim or controversy shall be submitted to arbitration pursuant to the Title Insurance Arbitration Rules of the American Land Title Association ("Rules"). Except as provided in the Rules, there shall be no joinder or consolidation with claims or controversies of other persons. Arbitrable matters may include, but are not limited to, any controversy or claim between the Company and the Insured arising out of or relating to this policy, any service in connection with its issuance or the breach of a policy provision, or to any other controversy or claim arising out of the transaction giving rise to this policy. All arbitrable matters when the Amount of Insurance is $2,000,000 or less shall be arbitrated at the option of either the Company or the Insured. All arbitrable matters when the Amount of Insurance is in excess of $2,000,000 shall be arbitrated only when agreed to by both the Company and the Insured. Arbitration pursuant to this policy and under the Rules shall be binding upon the parties. Judgment upon the award rendered by the Arbitrator(s) may be entered in any court of competent jurisdiction. 15. 10. REDUCTION OF INSURANCE; REDUCTION OR TERMINATION OF LIABILITY All payments under this policy, except payments made for costs, attomeys' fees, and expenses, shall reduce the Amount of Insurance by the amount 16. of the payment. 11. LIABILITY NONCUMULATIVE The Amount of Insurance shall be reduced by any amount the Company pays under any policy insuring a Mortgage to which exception is taken in Schedule B or to which the Insured has agreed, assumed, or taken subject, or which is executed by an Insured after Date of Policy and which is a charge or lien on the Title, and the amount so paid shall be deemed a payment to the Insured under this policy. 12. PAYMENT OF LOSS When liability and the extent of loss or damage have been definitely fixed in accordance with these Conditions, the payment shall be made within 30 days. 13. RIGHTS OF RECOVERY UPON PAYMENT OR SETTLEMENT (a) Whenever the Company shall have settled and paid a claim under this policy, it shall be subrogated and entitled to the rights of the Insured Claimant in the Title and all other rights and remedies in respect to the claim that the Insured Claimant has against any person or property, to the extent of the amount of any loss, costs, attorneys' fees, and expenses paid by the Company. If requested by the Company, the Insured Claimant shall execute documents to evidence the transfer to the Company of these rights and remedies. The Insured Claimant shall permit the Company to sue, compromise, or settle in the name of the Insured Claimant and to use the name of the Insured Claimant in any transaction or litigation involving these rights and remedies. If a payment on account of a claim does not fully cover the loss of the Insured Claimant, the Company shall defer the exercise of its right to recover until after the Insured Claimant shall have recovered its loss. (b) The Company's right of subrogation includes the rights of the Insured to indemnities, guaranties, other policies of insurance, or bonds, notwithstanding any terms or conditions contained in those instru- ments that address subrogation rights. LIABILITY LIMITED TO THIS POLICY; POLICY ENTIRE CONTRACT (a) This policy together with all endorsements, if any, attached to it by the Company is the entire policy and contract between the Insured and the Company. In interpreting any provision of this policy, this policy shall be construed as a whole. (b) Any claim of loss or damage that arises out of the status of the Tifie or by any action asserting such claim shall be restricted to this policy. (c) Any amendment of or endorsement to this policy must be in writing and authenticated by an authorized person, or expressly incorporated by Schedule A of this policy. (d) Each endorsement to this policy issued at any time is made a part of this policy and is subject to all of its terms and provisions. Except as the endorsement expressly states, it does not (1) modify any of the terms and provisions of the policy, (ii) modify any prior endorsement, (iii) extend the Date of Policy, or (iv) increase the Amount of Insurance. SEVERABILITY In the event any provision of this policy, in whole or in part, is held invalid or unenforceable under applicable law, the policy shall be deemed not to include that provision or such part held to be invalid, but all other provisions shall remain in full force and effect. 17. CHOICE OF LAW; FORUM (a) Choice of Law. The Insured acknowledges the Company has underwritten the risks covered by this policy and determined the premium charged therefor in reliance upon the law affecting interests in real property and applicable to the interpretation, rights, remedies, or enforcement of policies of tifle insurance of the jurisdiction where the Land is located. Therefore, the court or an arbitrator shall apply the law of the juds- diction where the Land is located to determine the validity of claims against the Title that are adverse to the Insured and to interpret and enforce the terms of this policy. In neither case shall the court or arbitrator apply its conflicts of law principles to determine the appli- cable law. (b) Choice of Forum: Any litigation or other proceeding brought by the Insured against the Company must be fled only in a state or federal court within the United States of America or its territories having appropriate jurisdiction. 18. NOTICES, WHERE SENT Any notice of daim and any other notice or statement in writing required to be given to the Company under this policy must be given to the Company at Claims Department, P.O. Box 2029, Houston, Texas 77252-2029. Page 4 Estewarte tithe guaranty company C.V. filed_X_C.V. not req. No delinquent taxes Transfer Entered 11/30/2012 10:00:00 AM Hennepin County, Minnesota Mark V. Chapin County Auditor and Treasurer flIIIIII11III1111NIflIY111lll Doc No A9878842 Certified, filed and/or recorded on 11/30/12 10:00 AM Office of the County Recorder Hennepin County, Minnesota Rachel Smith, Acting County Recorder Mark V. Chapin, County Auditor and Treasurer Deputy 8 Pkg ID 892056D CRV# 119327 Doc Name: Quit Claim Deed Document Recording Fee State Deed Tax (.0033 rate) Conservation Fee Environmental Response Fund (SDT .0001) Document Total PID(s) 06-118-21-11-0015 This cover sheet is now a permanent part of the recorded document. $46.00 $485.10 $5.00 $14.70 $550.80 Form No. 31-M — QUIT CLAM DEED Corporation, Partnership or Limited Liability Company to Corporation, Partnership or Limited Liability Company. DEED TAX DUE: $ 199 e 012.\" i b : )1X13 27 Date: 1 &.�- gll a •9:11 Elm FOR VALUABLE CONSIDERATION, Twin Cities Community Land Bank LLC, a nonprofit Limited Liability Company under the laws of Minnesota, Grantor, hereby conveys and quitclaims to City of New Hope, Grantee, a public body corporate and politic under the laws of Minnesota, real property in Hennepin County, Minnesota, described as follows: SEE ATTACHED EXHIBIT A together with all hereditaments and appurtenances, subject however, to all matters set forth on Exhibit `B" attached hereto and made part hereof. Check box if applicable: PlTlik Seller certifies that the seller does not know of any wells on the described real property. ❑ A well disclosure accompanies this document. ❑ I am familiar with the property in this instrument and I certify that the status and number of wells have not changed since the last previously filed well disclosure certificate. Affix Deed Tax Stamp Here win Cities uniJLnk LLC By: Margo Geffen Its: Manager By: Its: STATE OF MINNESOTA l( } COUNTY OF HENNEPIN ss. This instrument was acknowledged before me on 0� 7-5 2012, by Margo Geffen, the Manager of Twin Cities Community Land Bank LLC, a nonprofit Limited Liability Company under the laws of Minnesota, on behalf of the Limited Liability Company. TRACEY L LUBY Notary Pubiic Notary Public • Minnesota My Comm. Expires 01131/17 THIS INSTRUMENT WAS DRAFTED BY (NAME AND ADDRESS): Land Title, Inc. 2200 W. County Road C, Suite 2205 Roseville, MN 55113 388985 SIGNATURE OF NOTARY PUBLIC OR OTHER OFFICIAL Check here if part or all of the land is Registered (Torrents) 13 Tax Statements for the real property described in this instrument should be sent to (include name and address of Grantee): City of New Hope 4401 Xylon Avenue N New Hope, Minnesota 55428 EXHIBIT A Lot 2, Block 2, Hazel Hills Second Addition, Hennepin County, Minnesota. Exhibit `B" Permitted Encumbrances 1. Restrictions, reservations, covenants and easements relating to use or improvement of the Property without effective forfeiture provisions of record on the Effective Date; 2. Building and zoning laws, ordinances, city, state and federal regulations; 3. Governmental regulations, if any, affecting the use and occupancy of the Property, 4. All rights in public highways upon the land; 5. Easements for public rights-of-way and public and private utilities, which do not interfere with present improvements; 6. Reservations to the State, in trust for the taxing districts concerned, of minerals and mineral rights in those portions Of the Property the title to which may have at any time heretofore been forfeited to the State for nonpayment of real estate taxes: 7. The lien of unpaid special assessments, if any, not presently payable but to be paid as a part of the annual taxes to become due; 8. The lien of unpaid real estate taxes, if any, not presently payable but to be paid as part of the annual taxes to become due.