HomeMy WebLinkAbout1998-327ORDINANCE NO % 6� 7
AN ORDINANCE AUTHORIZING THE CITY MANAGER TO EXECUTE A REAL ESTATE
CONTRACT WITH THE RUTH G KELLUM ESTATE, BILLY H KELLUM, MARCIA L
KELLUM, MICHAEL W KELLUM, BARBARA KELLUM REESE, AND MARGARET MAYS
FOR THE PURCHASE OF APPROXIMATELY 0 514 ACRE TRACT OF LAND KNOWN AS
PARCEL NO 6A(E), U S HIGHWAY 77, DENTON, DENTON COUNTY, TEXAS FOR THE
U S HIGHWAY WIDENING PROJECT, AUTHORIZING THE EXPENDITURE OF FUNDS
THEREFORE, AND DECLARING AN EFFECTIVE DATE
THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS
SECTION I That the City Manager is hereby authorized to execute a Real Estate Contract
with the Ruth G Kellum Estate, Billy H Kellum, Marcia L Kellum, Michael W Kellum, Barbara
Kellum Reese, and Margaret Mays for the purchase of approximately 0 514 acres of land known as
Parcel No 6A(E), U S Highway 77, Denton, Denton County, Texas for the U S Highway
Widening Project, a copy of which is attached hereto and incorporated by reference herein
SECTION II That the City Council hereby authorizes the expenditure of funds in the
manner and amount as specified in the agreement
SECTION 11I That this ordinance shall become effective immediately upon its passage and
approval
PASSED AND APPROVED this the day of D e /' 1998
JACR4ILLER, MAYOR
ATTEST
JENNIFER WALTERS, CITY SECRETARY
Im
) AS TO LEGAL FORM
L PROUTY, CITY ATTORNEY
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REAL ESTATE CONTRACT
STATE OF TEXAS
COUNTY OF DENTON
THIS CONTRACT OF SALE is made by and between Ruth G. Kellum
Estate, Billy H. Kellum, Marcia L Kellum, Michael W. Kellum,
Barbara Kellum Reese and Margaret Mays (hereinafter referred to
as "Seller") and CITY OF DENTON, TEXAS, a home rule municipality,
of Denton, Denton County, Texas, (hereinafter referred to as
"Purchaser"), upon the terms and conditions set forth herein.
PURCHASE AND SALE
Seller hereby sells and agrees to convey, and Purchaser
hereby purchases and agrees to pay for all that certain tract,
lot or parcel of land described in Exhibit "A" attached with all
rights and appurtenances pertaining to the said property,
including any right, title and interest of Seller in and to
adjacent streets, alleys or rights -of -way (all of such real
property, rights, and appurtenances being hereinafter referred to
as the "Property"), together with any improvements, fixtures, and
personal property situated on and attached to the Property, for
the consideration and upon and subject to the terms, provisions,
and conditions hereinafter set forth. Seller shall pay all cost
for the removal, installation, construction, reinstallation,
reconstruction, labor and materials for any and/or improvements
located within the property described in Exhibit "A". Any
improvements not removed by January 1, 1999 shall become property
of the City of Denton, Texas.
PURCHASE PRICE
1 Amount of Purchase Price. The purchase price for the
Property shall be the sum of $1926.00
2 Payment of Purchase Price The full amount of the
Purchase Price shall be payable in cash at the closing
PURCHASER'S OBLIGATIONS
The obligations of Purchaser hereunder to consummate the
transactions contemplated hereby are subject to the satisfaction
of each of the following conditions any of which may be waived in
whole or in part by Purchaser at or prior to the closing.
1. Preliminary Title Report. Within twenty (20) days after
the date hereof, Seller, at Seller's sole cost and expense, shall
have caused the Title Company (hereinafter defined) to issue a
owners policy commitment (the "Commitment") accompanied by copies
of all recorded documents relating to easements, rights -of -way,
etc., affecting the Property. Purchaser shall give Seller
written notice on or before the expiration of ten (10) days after
Purchaser receives the Commitment that the condition of title as
set forth in the Commitment is or is not satisfactory In the
event Purchaser states the condition of title is not
satisfactory, Seller shall, at Seller's option, promptly
undertake to eliminate or modify all unacceptable matters to the
reasonable satisfaction of Purchaser. In the event Seller is
unable to do so within ten (10) days after receipt of written
notice, this Agreement shall thereupon be null and void for all
purposes, otherwise, this condition shall be deemed to be
acceptable and any ob3ection thereto shall be deemed to have been
waived for all purposes.
2. Surve . Purchaser may, at Purchaser's sole cost and
expense, obtain a current survey of the Property, prepared by a
duly licensed Texas land surveyor acceptable to Purchaser. The
survey shall be staked on the ground, and shall show the location
of all improvements, highways, streets, roads, railroads, rivers,
creeks, or other water courses, fences, easements, and rights -of -
way on or ad3acent to the Property, if any, and shall contain the
surveyor's certification that there are no encroachments on the
Property and shall set forth the number of total acres comprising
the Property, together with a metes and bounds description
thereof.
Purchaser will have ten (10) days after receipt of the survey
to review and approve the survey. In the event the survey is
unacceptable, then Purchaser shall within the ten (10) day
period, give Seller written notice of this fact. Seller shall,
at Seller's option, promptly undertake to eliminate or modify the
unacceptable portions of the survey to the reasonable
satisfaction of Purchaser. In the event Seller is unable to do
so within ten (10) days after receipt of written notice,
Purchaser may terminate this Agreement, and the Agreement shall
thereupon be null and void for all purposes and the Escrow
Deposit shall be returned by the Title Company to Purchaser.
Purchaser's failure to give Seller this written notice shall be
deemed to be Purchaser's acceptance of the survey.
3. Seller's Compliance. Seller shall have performed,
observed, and complied with all of the covenants, agreements, and
conditions required by this Agreement to be performed, observed,
and complied with by Seller prior to or as of the closing.
AEE008FE PAGE 2
REPRESENTATIONS AND WARRANTIES OF SELLER
Seller hereby represents and warrants to Purchaser as
follows, which representations and warranties shall be deemed
made by Seller to Purchaser also as of the closing date
1. Except for an oral agricultural rental agreement, there
are no parties in possession of any portion of the Property as
tenants at sufferance, trespassers or other parties. Seller
warrants that the tenant and/or his livestock will be removed no
later than 30 days from the date of closing.
2 Except for the prior actions of Purchaser, there is no
pending or threatened condemnation or similar proceeding or
assessment or suit, affecting title to the Property, or any part
thereof, nor to the best knowledge and belief of Seller is any
such proceeding or assessment contemplated by any governmental
authority.
3. Seller has complied with all applicable laws, ordinances,
regulations, statutes, rules and restrictions relating to the
Property, or any part thereof.
4. To the best of the seller's knowledge, there are no toxic
or hazardous wastes or materials on or within the Property. Such
toxic or hazardous wastes or materials include, but are not
limited to, hazardous materials or wastes as same are defined by
the Resource Conservation and Recovery Act (RCRA), as amended,
and the Comprehensive Environmental Response Compensation and
Liability Act (CERCLA), as amended.
CLOSING
The closing shall be held at the office of Dentex Title
Company on or before November 30, 1998, or at such title company,
time, date, and place as Seller and Purchaser may mutually agree
upon (which date is herein referred to as the "closing date").
CLOSING REQUIREMENTS
1 Seller's Requirements. At the closing Seller shall
A. Deliver to State of Texas, acting by and through the
Texas Transportation Commission a duly executed and
acknowledged Drainage Easement Document in the form as
attached hereto as Exhibit "B" conveying good and
marketable title to all of the Property, free and clear
of any and all liens, encumbrances, conditions,
AEE008FE PAGE 3
easements, assessments, and restrictions, except for the
following•
1. General real estate taxes for the
year of closing and subsequent years not
yet due and payable,
2. Any exceptions approved by Purchaser
pursuant to Purchaser's Obligations
hereof; and
3. Any exceptions approved by Purchaser
in writing.
B. Deliver to Purchaser a Texas Owner's Policy of Title
Insurance at Purchaser's sole expense, issued by Dentex
Title Company, Denton, Texas, (the "Title Company"), or
such title company as Seller and Purchaser may mutually
agree upon, in Purchaser's favor in the full amount of
the purchase price, insuring fee simple title for the
State of Texas to the Property subject only to those
title exceptions listed in Closing Requirements hereof,
such other exceptions as may be approved in writing by
Purchaser, and the standard printed exceptions contained
in the usual form of Texas Owner's Policy of Title
Insurance, provided, however
1. The boundary and survey exceptions
shall be deleted if required by Purchaser
and if so required, the costs associated
with same shall be borne by Purchaser;
2. The exception as to restrictive
covenants shall be endorsed "None of
Record",
3. The exception for taxes shall be
limited to the year of closing and shall
be endorsed "Not Yet Due and Payable";
and
4. The exception as to liens encumbering the
Property shall be endorsed "None of Record".
C. Deliver to Purchaser possession of the Property on
the day of closing.
AEEOO8FE PAGE 4
2. Purchaser's Requirements. Purchaser shall pay the
consideration as referenced in the "Purchase Price"
section of this contract at Closing in immediately
available funds.
3. Closing Costs. Taxes for the current year will be
prorated through the closing date. Rollback taxes , if any, will
be paid by Purchaser.
All other costs and expenses of closing in consummating the
sale and purchase of the Property not specifically allocated
herein shall be paid by Purchaser.
REAL ESTATE COMMISSION
All obligations of the Purchaser or Seller for payment of
Brokers fees are contained in separate written agreements.
BREACH BY SELLER
In the event Seller shall fail to fully and timely perform
any of its obligations hereunder or shall fail to consummate the
sale of the Property except Purchaser's default, Purchaser may
either enforce specific performance of this Agreement or
terminate this Agreement by written notice delivered to seller.
BREACH BY PURCHASER
In the event Purchaser should fail to consummate the purchase
of the Property, the conditions to Purchaser's obligations set
forth in PURCHASER'S OBLIGATIONS having been satisfied and
Purchaser being in default Seller may either enforce specific
performance of this Agreement, or terminate this Agreement by
written notice delivered to purchaser.
MISCELLANEOUS
1. Assignment of Agreement. This Agreement may not be
assigned by Purchaser without the express written consent of
Seller.
2. Survival of Covenants. Any of the representations,
warranties, covenants, and agreements of the parties, as well as
any rights and benefits of the parties, pertaining to a period of
time following the closing of the transactions contemplated
hereby shall survive the closing and shall not be merged therein
AEEOOBFE PAGE 5
3. Notice. Any notice required or permitted to be delivered
hereunder shall be deemed received when sent by United States
mail, postage prepaid, certified mail, return receipt requested,
addressed to Seller or Purchaser, as the case may be, at the
address set forth beneath the signature of the party.
4. Texas Law to Apply. This Agreement shall be construed
under and in accordance with the laws of the State of Texas, and
all obligations of the parties created hereunder are performable
in Denton County, Texas.
5. Parties Bound. This Agreement shall be binding upon and
inure to the benefit of the parties and their respective heirs,
executors, administrators, legal representatives, successors and
assigns where permitted by this Agreement.
6. Legal Construction. In case any one or more of the
provisions contained in this Agreement shall for any reason be
held to be invalid, illegal, or unenforceable in any respect,
said invalidity, illegality, or unenforceability shall not affect
any other provision hereof, and this Agreement shall be construed
as if the invalid, illegal, or unenforceable provision had never
been contained herein.
7. Prior Agreements Superseded. This Agreement constitutes
the sole and only agreement of the parties and supersedes any
prior understandings or written or oral agreements between the
parties respecting the within sub]ect matter.
B. Time of Essence. Time is of the essence in this
Agreement.
9. Gender. Words of any gender used in this Agreement shall
be held and construed to include any other gender, and words in
the singular number shall be held to include the plural, and vice
versa, unless the context requires otherwise.
10. Memorandum of Contract. Upon request of either party,
both parties shall promptly execute a memorandum of this
Agreement suitable for filing of record.
11. Compliance. In accordance with the requirements of the
Texas Real Estate License Act, Purchaser is hereby advised that
it should be furnished with or obtain a policy of title insurance
or Purchaser should have the abstract covering the Property
examined by an attorney of Purchaser's own selection.
AEEOOOFE PAGE 6
12. Time Limit. In the event a fully executed copy of this
Agreement has not been returned to Purchaser within ten (10) days
after Purchaser executes this Agreement and delivers same to
Seller, Purchaser shall have the right to terminate this
Agreement upon written notice to Seller.
13. Condemnation. It is agreed that this is a sale and
purchase of land considered under threat of condemnation. City of
Denton would condemn the property for road purposes if the
parties hereto had not agreed as to the terms of sale.
DATED this /0 day of , 1998.
SELLER.
Ruth G. Kellum Estate
BY 0 W-t ---
Bi ly V. Kellum individually
and as the Executor to the Ruth
G. Kellum Estate
..vim.
Marcia ellum
Michael W. Kellum
Barbara Kellum Reese
AEE008FE PAGE 7
��lG ('PURCHASER
I THE CITY OF DENTON,
TEXAS
c
B
Cit Man er
215 E. McKinney
Denton,Texas 76201
STATE OF TEXAS
COUNTY OF DENTON
instrument is acknowledged before me, on this day of
1998 by Billy H. Kellum individually and as
or to the Ruth G. Kellum Estate.
�� 5W r4
Notary Ptiblic in and for
the State of Texas
STATE OF TEXAS
COUNTY OF DENTON
This instrument is acknowledged before me, on this lq� day of
✓pl , f�`D__ 1998 by Marcia L. Kellum.
Q4g, -W `t&
Notary Public in and for
the State of Texas
STATE OF TEXAS
COUNTY OF DENTON
This instrument is acknowledged before me, on this day of
1998 by Michael W. Kellum.
rA TONYAL MORRIS Not Public inand or
" W GOMMISSION IXPII I S y
e� December15,1M the State of Texas
STATE OF TEXAS
COUNTY OF DENTON
T instrument is acknowledged before me, on this (O , day of
Lam_, 1998 by Barbara Kellum Reese
Notary Public in and for
the State of 4f4wes AetA,&eWA,
AEE008FE PAGE 8
STATE OF TEXAS
COUNTY OF DENTON
This instrument is acknowledged before me, on this /l/ day of
1998 by Margaret Mays. &
Notary lic in and for
the State of Texas
STATE OF TEXAS
COUNTY OF DENTON
This instrument is acknowledg d before m on this day of
1998 bTZ, City Manager,
of the City of Denton, a municipal corporation, known to me to be
the person and officer whose name is subscribed to the foregoing
instrument and acknowledged to me that the same was the act of
the said City of Denton, Texas, a municipal corporation, that he
was duly authorized to perform the same by appropriate ordinance
of the City Council of the City of Denton and that he executed
the same as the act of the said City for purposes and
consideration therein expressed, and in the capacity therein
stated.
Nota y Pub is And for
the State of T as
.,�-��, ANN FORSYTHE
� . �� , Notary Publlo, State of Texec
My Commlglon Explm
��t�0f Y4*'y MAY 8, 20tl2
AEEOOBFE PAGE 9
EXHIBIT "A"
County Denton
Highway U.S. 77
Project Limits: From I.H. 35
To U.S.380
CSJ 0195-02-
Account
FIELD NOTES FOR PARCEL 8AIE1
Page 1 of 1
Rev. June 30, 1994
BEING A PARCEL OF LAND SITUATED IN A CALLED 125-ACRE PARCEL OF LAND CONVEYED TO BARBARA
KELLUM, ET AL, RECORDED IN VOLUME 946, PAGE 263, DEED RECORDS DENTON COUNTY, TEXAS (DRDCT),
AND BEING SITUATED IN THE ALEXANDER WHITE SURVEY, ABSTRACT NO.1406, CITY OF DENTON, DENTON
COUNTY, TEXAS, AND BEING MORE PARTICULARLY DESCRIBED AS FOLLOWS
COMMENCING for reference at a found brass monument being a point in the north right of way line of Loop 288
Is variable width right of way),
THENCE N 800 23' 23" W, along the north right of way line of Loop 288, a distance of 53.04 feet to a set 5/8-
inch iron rod with an aluminum cap, being a point on the new north right of way line of U S 77,
THENCE N 580 11' 36" W, along the new north right of way line of U.S 77, a distance of 597 73 feet to a set
5/8-inch iron rod with an aluminum cap;
THENCE N 580 12' 52" W, continuing along the new north right of way line of U S 77, a distance of 175.89
feet to a set 5/8-inch iron rod with an aluminum cap being the POINT OF BEGINNING,
11) THENCE N 680 12' 52" W, with the new north right of way line of U.S 77, a distance of 80 00
feet to a set 5/8-inch iron rod with an aluminum cap,
(2) THENCE N 310 47' 08" E, across said Kellum tract, a distance of 280.00 feet to a set 5/8-inch
Iron rod with an aluminum cap,
(3) THENCE S 580 12' 52" E, a distance of 80 00 feet to a set 5/8-inch iron rod with an aluminum
cap,
(4) THENCE S 310 47' 08" W, a distance of 280 00 feet to the POINT OF BEGINNING and containing
0.514 acres, or 22,400 square feet of land, more or less
,
John F Wilder, R P L S
Texas No 4285
7
Date
0-24M RN
Texas Deparmrent of Transportation EXHIBIT "B"
Form D-15-31
Page 1 of 3 Rev 9/91
Drainage Easement for Highway Purposes
THE STATE OF TEXAS
COUNTY OF
That,
KNOW ALL MEN BY THESE PRESENTS.
of the County of State of Texas, hereinafter referred to as Grantors, whether one
or more, for and in consideration of the sum of
Dollars ($ ) to Grantors in hand
braid by the State of Texas, acting by and through the Texas Transportation Commission, receipt of which
is hereby acknowledged, and for which no lien is retained, either expressed or implied, do by these
presents Grant, Bargain, Sell and Convey unto the State of Texas an easement in, along, upon and across
the property which is situated in the County of , State of Texas, which is more
particularly described in Exhibit "A," which is attached hereto and incorporated herein for any and all
purposes
This easement conveyed herein is for the purpose of opening, constructmg and maintaining a permanent
channel or drainage easement in, along, upon and across said premises described in Exhibit "A" together
with the right and privilege at all tunes of the Grantee herein, its agents, employees and representatives of
ingress ano egress to and from said premises for the purpose of making any unprovements, modifications
or repairs which the State deems necessary
And for the same consideration described above and upon the same conditions, the Grantors have tins day
granted and conveyed and by these presents do grant and convey unto the State of Texas any and all un-
provements presently existing upon the property described in said Exhibit "A," SAVE and EXCEPT,
HOWEVER, it is expressly understood and agreed that Grantors are retaining title to the following
improvements located on the aforesaid property, to wit
Grantors covenant and agree to remove the above -described unprovements from said land by the
day of , 19 , subject, however, to such extensions of time as may be granted
by the State in wntmg, and if, for any reason, Grantors fail or refuse to remove same within said penod of
time prescribed, then, without any further consideration, the title to all or any part of such unprovements
not so removed shall pass to and vest in the State of Texas forever
As a part of the grant hereby made it is agreed between the parties hereto that any stone, earth, gravel or
cahche which maybe excavated in the opening, construction or maintenance of said channel or drainage
easement may be removed from said premises by the State and utilized in the construction and mainte-
nance of the State highway system of Texas
TO HAVE AND TO HOLD the premises described in Exhibit "A" for said purposes together with all
and singular the rights, pnvileges and appurtenances thereto any manner belonging, unto the State of
Texas forever, and Grantor hereby bindsi ts lf, in its heirs, successors or assigns, to Warrant and Forever
Defend, all and singular, the said easement herem conveyed unto the State of Texas, its successors and
assigns, against every person whomsoever lawfully claiming or to claim the same or any part thereof
Texas Department of Transportation
Form D-15.31
Page 2 of 3 Rev 9/91
IN WITNESS WHEREOF, this instrument is executed on this the
day of , 19
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ACKNOWLEDGMENT
THE STATE OF TEXAS,
COUNTY OF
BEFORE ME, the undersigned, a Notary Public, on this day personally appeared
, known to me (or proved
to me on the oath of a credible witness,) to be the person(s) whose
name(s) is (ate) subscribed to the foregoing instrument and acknowledged to me that he/she/they executed the same for the
purposes and consideration thetem expressed
GIVEN UNDER MY HAND AND SEAL OF OFFICE, this day of
Notary Public, State of Texas
My Commission expaes on the day of , 19_
CORPORATE ACKNOWLEDGMENT
THE STATE OF TEXAS,
COUNTY OF
BEFORE ME, the undersigned, a Notary Public, on this day personally appeared
-- of
19_
, known to
me to be the person and officer whose name is subscnbed to the foregoing instrument and acknowledged to me that the same
was the act Iof the said , a corporation, that he/she was
duly authorized to perform the same by appropriate resolution of the board of directors of such corporation and that he/she
executed the same as the act of such corporation for the purposes and consideration therein expressed, and in the capacity
therein stated
GIVEN UNDER MY HAND AND SEAL OF OFFICE, this day of
Notary Pubhe, State of Texas
, 19_
My Commission expires on the _ day of , 19_
Texas Department of Transportation
Form D-15-31
Page 3 of 3 Rev 9/91
After recording please return this instrument to:
U
O
I
CERTIFICATE OF RECORDING
THE STATE OF TEXAS,
COUNTY OF
1%
1.9
A30191 (1/93)
THE FOLLOWING COMMITMENT
POLICY AMOUNT ARE SHOWN
COUNTERSIGNED BELOW
.R TITLE INSURANCE IS NOT VALID UNL d YOUR NAME AND THE
IN SCHEDULE A, AND OUR AUTHORIZED REPRESENTATIVE HAS
COMMITMENT FOR TITLE INSURANCE
ISSUED BY
ift
Alamo Title Insurance
of Texas
,Oro ino
`—A w-"
OF No 17 — 1735 s
S'6 G • UZ�z
We, Alamo Title Insurance of Texas, a Texas corporation, will issue our title insurance policy or policies
(the Policy) to You (the proposed insured) upon payment of the premium and other charges due, and
compliance with the requirements in Schedule B and Schedule C Our Policy will be in the form approved
by the Texas Department of Insurance at the date of issuance, and will Insure your Interest in the land
described in Schedule A The estimated premium for our policy and applicable endorsements is shown on
Schedule D There may be additional charges such as recording fees, and expedited delivery expenses.
This Commitment ends ninety (90) days from the effective date, unless the Policy is issued sooner, or failure
to Issue the Policy Is our fault Our liability and obligations to you are under the express terms of this
Commitment and end when this Commitment expires
ATTEST Z
i 0
1
i '
DENTEX TITLE COMPANY
300 N. ELM STE 101
DENTON, TEXAS 76201
ALAMO TITLE INSURANCE OF TEXAS
By d4,4_ % Nirir
President
Authorized Authorized Signatory
CONDITIONS AND STIPULATIONS
1 If you have actual knowledge of any matter which may affect the title or mortgage covered by this
Commitment, that is not shown in Schedule B, you must notify us in writing If you do not notify us in
writing, our liability to you is ended or reduced to the extent that your failure to notify us affects our
liability If you do notify us, or we learn of such matter, we may amend Schedule B, but we will not be
relieved of liability already incurred
2 Our liability is only to you, and others who are included in the definition of Insured in the Policy to be
Issued Our liability is only for actual loss Incurred in your reliance on this Commitment to comply with
its requirements or to acquire the Interest In the land Our liability is limited to the amount shown in
Schedule A of this Commitment and will be subject to the following terms of the Policy
Insuring Provisions, Conditions and Stipulations, and Exclusions
(THIS COMMITMENT IS INVALID UNLESS SCHEDULES A, B, C AND D ARE ATTACHED HERETO)
Commitment for Titleilnsurance Effective January 1, 1993
A32167 (1/93)
TEXAS TITLE INSURANCE INFORMATION
Title Insurance Insures you against lose resulting from certain
risks to your title
The Commitment for Title Insurance is the title Insurance
company's promise to issue the title insurance policy The
Commitment is a legal document You should review it
carefully to completely understand it before your closing date
El seguro de titulo Is asegura an relaci6n a perdidas resultantes
de clerics riesgos que pueden afectar el ttulo de su propisdad
El Compromiso pare Segura de Titulo as Is promesa de Is
compa6la aseguradora de titulos de emltir Is p6liza do seguro
de titulo El Compromiso as un documento legal Listed dabs
leerlo cuidadosamente y entarderlo completamente antes de la
Ischia pare finalizar su transacc16n
Your Commitment for Title Insurance Is a legal contract between you and us The Commitment is not an opinion or report of your
title It Is a contract to Issue you a policy subject to the Commitments terms and requirements
Before issuing a Commitment for Title Insurance (the Commitment) or a Title Insurance Policy (the Policy), the Title Insurance
Company (the Company) determines whether the title is insurable This determination has already been made Part of that
determination involves the Company's decision to insure the title except for certain risks that will not be covered by the Policy Some
of these risks are listed In Schedule B of the attached Commitment as Exceptions Other risks are stated in the Policy as Exclusions
These risks will not be covered by the Policy
Another part of the determination involves whether the promise to Insure is conditioned upon certain requirements being met
Schedule C of the Commitment lists these requirements that must be satisfied or the Company will refuse the cover them You may
want to discuss any matters shown on Schedules Bend C of the Commitment with an attorney These matters will affect your title
and your use of the land
When your Policy Is Issued, the coverage will be limited by the Policy s Exceptions, Exclusions and Conditions, defined below
EXCEPTIONS are title risks that a Policy generally covers but does not cover in a particular instance Exceptions are shown
on Schedule B or discussed in Schedule C of the Commitment They can also be added if you do not comply with the
Conditions section of the Commitment When the Policy is Issued, all Exceptions will be on Schedule B of the Policy
EXCLUSIONS are title risks that a Policy generally does not cover Exclusions are contained in the Policy but not shown
or discussed In the Commitment
CONDITIONS are additional provislons that qualify or limit your coverage Conditions include your responsibilities and those
of the Company They are contained In the Policy but not shown or discussed in the Commitment The Policy Conditions
are not the same as the Commitment Conditions
You can get a copy of the policy form approved by the State Board of Insurance by calling the Title Insurance Company at
1.800-999.4320 or by calling the title Insurance agent that issued the Commitment The State Board of Insurance may revise
the policy form from time to time
You can also get a brochure that explains the Policy from the Texas Department of Insurance by calling 1.800-252.3439.
Before the Policy Is Issued, you may request changes in the Policy Some of the changes to consider are
Request amendment of the 'area and boundary" exception (Schedule B, paragraph 2) To get this amendment, you must
furnish a survey On the Owner Policy, you must pay an additional premium for the amendment If the survey is acceptable
to the Company, your policy will Insure you against loss because of discrepancies or conflicts in boundary lines,
encroachments or protrusions, or overlapping of improvements The Company may then decide not to Insure against
specific boundary or survey problems by making special exceptions in the Policy
Allow the Company to add an exception to "rights of parties in possession' If you refuse this exception, the Company
or the title insurance agent may Inspect the property The Company may except to and not Insure you against the rights
of specific persons, such as renters, adverse owners or easement holders who occupy the land The Company may charge
you for the Inspection
Form - Commitment Intommtkm Eeee We Jenuery 1 1993
COMMITMENT FOR TITLE INSURANCE
SCHEDULE A
EFFECTIVE DATE: September 09, 1997 GF NO.: 97-1735S
COMMITMENT NO.: , issued September 23, 1997 at 81 00 a. m.
(If applicable)
1 POLICY OR POLICIES TO BE ISSUED:
(a.) OWNERS POLICY OF TITLE INSURANCE (Form T-1)
(Not applicable for improved one -to -four family residential real estate)
Policy Amount: TO BE DETERMINED
Proposed Insured: CITY OF DENTON
(b.) OWNERS POLICY OF TITLE INSURANCE -
ONE -TO -FOUR FAMILY RESIDENCES (Form T-IR)
Policy Amount:
Proposed Insured:
(a.) MORTGAGEE POLICY OF TITLE INSURANCE (Form T-2)
Policy Amount:
Proposed Insured:
Proposed Borrower:
(d.) MORTGAGEE POLICY BINDER ON INTERIM CONSTRUCTION LOAN (Form T-13)
Binder Amount:
Proposed Insured:
Proposed Borrower:
( a. ) OTHER:
Policy Amount:
Proposed Insured:
2. The interest in the land covered by this Commitment is. Fee Simple
3. Record title to the land on the Effective Date appears to be vested in.
RUTH G. KELLUM and MARGARET MAYS and BILLY H. KELLUM and MARCIA L. KELLUM
and MICHAEL W. KELLUM and BARBARA KELLUM OL,9-Q.
4 Legal description of the land:
All that certain tract of land being situated in the A. White Survey, Abstract No
1406 and the N. Wade Survey, Abstract No. 1407, Denton County, Texas and being more
particularly described in Exhibit "A" attached hereto and made a part hereof.
Dentex Title Company
By
Authorized Countersignature
FORM: Commitment -Schedule A Effective January, 1 1993
County Denton
Highway U.S. 77
Project Limits. From I.H. 36
To U.S. 380
CSJ 0195-02.
Account•
EXHIBIT 'A'
FIELD NOTES FOR PARCEL MM
Page 1 of 1
Rev. June 30, 1994
BEING A PARCEL OF LAND SITUATED IN A CALLED 125-ACRE PARCEL OF LAND CONVEYED TO BARBARA
KELLUM, ET AL, RECORDED IN VOLUME 940, PAGE 283, DEED RECORDS DENTON COUNTY, TEXAS IDRDCT),
AND BEING SITUATED IN THE ALEXANDER WHITE SURVEY, ABSTRACT NO.1406, CITY OF DENTON, DENTON
COUNTY, TEXAS, AND BEING MORE PARTICULARLY DESCRIBED AS FOLLOWS:
COMMENCING for reference at a found brass monument being a point in the north right of way line of Loop 288
(a variable width right of way):
THENCE N 800 23' 23' W, along the north right of way line of Loop 288, a distance of 53.04 feet to a set 5/8-
inch iron rod with an aluminum cap, being a point on the new north right of way line of U.S. 77,
THENCE N 580 11' 38" W, along the new north right of way line of U.S. 77, a distance of 597 73 feet to a set
6/8-inch iron rod with an aluminum cap;
THENCE N 580 12' 52' W, continuing along the new north right of way line of U.S. 77, a distance of 176 89
feet to a set 6/8-inch Iron rod with an aluminum cap being the POINT OF BEGINNING,
Ill THENCE N 680 12' 52' W, with the new north right of way line of U.S 77, a distance of 80 00
feet to A set 5/8-inch Iron rod with an aluminum cap,
(2) THENCE N 310 47' 08" E, across said Kellum tract, a distance of 280 00 feet to a set 5/8-Inch
iron rod with an aluminum cap;
(3) THENCE S 680 12' 62' E. a distance of 80 00 feet to a set 5/8-inch iron rod with an aluminum
cap;
(4) THENCE S 310 47' 08" W, a distance of 280.00 feet to the POINT OF BEGINNING and containing
0.514 acres, or 22,400 square feet of land, more or less.
COMMITMENT FOR TITLE INSURANCE
SCHEDULE B
EXCEPTIONS FROM COVERAGE
G F. No.: 97-1735S
In addition to the Exclusions and Conditions and Stipulations, your Policy will not
cover lose, costs, attorneys' fees, and expenses resulting from:
1. The following restrictive covenants of record itemized below (We must either
insert specific recording data or delete this exception):
This exception is hereby deleted in its entirety.
2 Any discrepancies, conflicts, or shortages in area or boundary lines, or any
encroachments or protrusions, or any overlapping of improvements.
3 Homestead or community property or euvivorship rights, if any, of any spouse of any
insured. (Applies to the Owner Policy only.)
4. Any titles or rights asserted by anyone, including, but not limited to, persons, the
public, corporations, governments or other entities,
a. to tidelands, or lands comprising the shores or beds of navigable or
perennial rivers and streams, lakes, bays, gulfs or oceans, or
b. to lands beyond the line of the harbor or bulkhead lines as established
or changed by any government, or
c to filled -in -lands, or artificial islands, or
d. to statutory water rights, including riparian rights, or
e. to the area extending from the line of mean low tide to the line of vegetation,
or the rights of access to that area or easement along and across that area
(Applies to the Owner Policy only.)
5. Standby fees, taxes and assessments by any taxing authority for the year 1997 and
subsequent years, and subsequent taxes and assessments by any taxing authority for
prior years due to change in land usage or ownership
6. The terms and conditions of the documents creating your interest in the land.
7. Materials furnished or labor performed in connection with planned construction
before signing and delivering the lien document described in Schedule A, if the land
is part of the homestead of the owner. (Applies to the Mortgagee Title Policy
Binder on Interim Construction Loan only, and may be deleted if satisfactory
evidence is furnished to us before a binder is issued.)
8. Liens and leases that affect the title to the land, but that are subordinate to the
lien of the insured mortgage. (Applies to the Mortgagee Policy only )
9. The following matters and all terms of the documents creating or offering evidence
of the matters (We must insert matters or delete this exception.).
a. LIEN TO BE CREATED IN FORM ACCEPTABLE TO THIS COMPANY
b. This policy insures real estate only and does not insure title to any
removables which may be situated thereon.
C. Any matters that might arise as a result of a current survey of the
property.
d. Rights of parties in possession. (On OTP only)
e. Any visible and apparent easements over and across said property, the
existence of which does not appear of record.
FORM: Commitment -Schedule B Effective January 1, 1993
CONTINUATION OF SCHEDULE B
G. F. No.: 97-1735S
f. Any part or portion of the herein described property, lying within the
boundaries of a public or private road or right of way.
g. Any outstanding oil, gas and other mineral interest owned by others of
record in the office of the County Clerk of Denton County, Texas, including, but
not limited to the followings
1) Lease between Ruth Kellum at al and Derrick Petroleum Inc. recorded on Oct
1, 1981 in Volume 1104, Page 584, Deed Records of Denton County, Texas
2) Lease between Billy H. Kellum at al and W.R. Marshall recorded on April 18,
1985 in Volume 1616, Page 178, Real Property Records of Denton County, Texas
*Title to said mineral leases/reservations have not been researched subsequent
to date of document.
h. Easement granted to BRAZOS RIVER TRANSMISSION ELECTRIC COOPERATIVE, INC.
from A.W. GOODWIN ET UX, by instrument filed DEC. 31, 1946 and recorded in
Volume 332, Page 501, DEED Records, Denton County, Texas.
i. Easement granted to DENTON COUNTY ELECTRIC COOPERATIVE, INC. from A.W
GOODWIN ET UX, by instrument filed AUG 15, 1947 and recorded in Volume 339,
Page 123, DEED Records, Denton County, Texas
j Easement granted to TEXAS MUNICIPAL POWER AGENCY from RUTH G. KELLUM ET AL,
by instrument filed JUNE 5, 1986 and recorded in Volume 1900, Page 300, REAL
PROPERTY Records, Denton County, Texas.
FORMS Commitment -Schedule B Effective January 1, 1993
COMMITMENT FOR TITLE INSURANCE
SCHEDULE C
G. F. No : 97-1735S
Your Policy will not cover loss, coats, attorney's fees, and expenses resulting from the
following requirements that will appear as Exceptions in Schedule B of the Policy,
unless you dispose of these matters to our satisfaction, before the date the Policy is
issued:
1. Documents creating your title or interest must be approved by us and must be
signed, notarized and filed for record.
2 Satisfactory evidence must be provided that.
- no person occupying the land claims any interest in that land against the
persons named in paragraph 3 of Schedule A.
- all standby fees, taxes, assessments and charges against the property have been
paid,
- all improvements or repairs to the property are completed and accepted by
owner, and that all contractors, subcontractors, laborers and suppliers have
been fully paid, and that no mechanic's, laborer's or materialmen's liens have
attached to the property,
- there is legal right of access to and from the land,
- (on a Mortgagee Policy only) restrictions have not been and will not be
violated that affect the validity and priority of the insured mortgage
3. You must pay the seller or borrower the agreed amount for your property or interest.
4 Any defect, lien or othermatter that may affect title to the land or interest
insured, that arises or is filed after the effective date of this Commitment.
5. Upon receipt of a survey acceptable to Company and upon payment of all the
expenses in connection with the survey and the applicable premium, if any, Item 2 of
Schedule B will be deleted except for "shortages in area," subject to any additional
exceptions revealed by the survey.
6. Upon payment of the applicable premium, Paragraph 3 of Schedule B of any
Mortgagee Title Policy or Mortgagee Title Policy Binder on Interim Construction Loan
will be amended to read as follows: "Standby fees, taxes and assessments by any
taxing authority for the year 1997 and subsequent years."
7. Upon payment of the applicable premium, Paragraph 3 of Schedule B of any
Mortgagee Title Policy or Mortgagee Title Policy Binder on Interim Construction Loan
will be amended to include the following language. "Company insures that standby
fees, taxes and assessments by any taxing authority for the year 1997 are not yet
due and payable."
s. Note to all buyers, sellers, borrowers, lenders and all parties having an
interest in the transaction covered by this commitment. The following constitutes a
major change in the procedures and requirements for disbursement of funds pursuant
to this transactions
The State Board of Insurance has adopted Article 9.39A disbursement from trust fund
accounts and Procedural Rule P-27 which requires that sufficient "good funds" be
received and deposited to the trust fund account before disburament. "Good funds"
is defined in part as: 1. cash or wire transfers; 2 certified checks, cashier's
checks and teller's checks; 3 uncertified funds in amounts less than $1500.00,
including personal checks, travelers checks, money orders, and negotiable orders of
FORM: Commitment -Schedule C Effective January 1, 1993
ONTINUATION OF SCHEDULE C
G.F. No.' 97-17355
withdrawal; provided multiple items shall not be used to avoid the $1500.00
limitation; and 4. uncertified funds in amounts of $1500.00 or more, drafts and any
other items when collected by the financial institution.
9. Obtain and return to title company a signed statement made by purchaser/borrower
acknowledging receipt of title commitment prior to closing, and acceptance of the
exceptions shown under Schedule B thereof.
10. If the property is occupied by other than owner, obtain tenant's disclaimer or
waiver; otherwise, exception will be taken to rights of parties in possession.
11. Obtain Seller's Affidavit as to no debts, liens, etc on said property for
recent improvements, if any, or under UCC filing.
12. Additional Closing Requirements (3 page form) must be signed and initialed by
all parties in this transaction.
13 Bankruptcies:
BARBARA L REECE SS#N/A (PARIS) #1841P 09/18/87
BARBARA REESE SS#452-64-0772 (HOUSTON) #42002 02/27/97
it $S#457-72-1660 It of it
REQUIREMENT: Affidavit with proper identification to affirm that BARBARA E. REESE,
is not the same person as any of those who are parties to any of the above mentioned
bankruptcies OR require evidence that they have authority to enter into the
transaction
14. Bankruptcies:
LAURA L. KELLUM SS#455-06-5303 (DALLAS) #37307D 10/31/90
REQUIREMENT: Affidavit with proper identification to affirm that LAURA KELLUM, is
not the same person as any of those who are parties to any of the above mentioned
bankruptcies OR require evidence that they have authority to enter into the
transaction
15. If RUTH G. KELLUM, MARGARET MAYS, BILLY H. KELLUM, MARCIA L. KELLUM, MICHAEL W
KELLUM, and/or BARBARA KELLUM is married then spouse(s) should join in conveyance
16. Require proper documentation showing who has authority to execute documents on
behalf of CITY OF DENTON.
FORMS Commitment -Schedule C Effective January 1, 1993
Alamo Title Insurance of Texas
COMMITMENT FOR TITLE INSURANCE GF NO 97-1735S
SCHEDULE D
Pursuant to the requirements of Rule P-21, Basic Manual of Rules, Rates and Forms for the
writing of Title Insurance in the State of Texas, the following disclosures are made
1. The following individuals are directors and/or officers, as indicated, of Alamo Title
Insurance of Texas.
Alex H Halff, Chairman of the Board, Don H Still President, Ruth W
McCracken Senior Vice President, Richard B. Squilla, Vice President,
Pat L. Wilson, Secretary -Treasurer
DIRECTORS: Jack Biegler, Alex H. Halff, Ruth W McCracken, Travis M
Moursand, Robert T. Rork, Don H. Still, E. Don Walker, Jr , James M.
Wilson and Pat L. Wilson
Alex H Halff, Howard A. Halff, the Estate of Thomas A Halff, and
Mortgage Loan & Agency Co. are owners of more than 10% of the stock of
Alamo Title Insurance of Texas. Travis M. Moursund and Alfred Moursund
are each an owner of more than 10% of the stock of Mortgage Loan &
Agency Co
2. The following disclosures are made by the Title Insurance Agent issuing this commitment
OWNERS of 100% of Dentex Title Company Adams Title Company
DIRECTORS of Dentex Title Company: Phil Adams, Ruth Adams & Rebecca
Arnold -Moore
OFFICERS of Dentex Title Company Rebecca Arnold -Moore, President, Jack Hanna, Vice
President, Stacie Bourland, Secretary/Treasurer
Phil Adams and Ruth Adams own 100% of the stock of Adams Title Company
3. You are entitled to receive advance disclosure of settlement charges in connection with
the proposed transaction to which this comet tment relates Upon your request, such
B
disclosure will be made to you Additionally, the name of any erson, firm or corporation
receiving any sum from the settlement of this transaction will e disclosed on the closing
or settlement statement.
You are further advised that the estimated title premium* is
Owner Policy To Be Determined
Mortgage Policy
Endorsement Charges
Total e.Xp.,PAepetermined
Of this total amount. 1 7.7 5 __� will be paid to the policy issuing Title
Insurance Company. —8 wi 1 be retained by the Title Insurance Agency and
the remainder of the m premium will be paid to other parties as follows
AMOUNT TO WHOM FOR SERVICES
* The estimated premium is based upon information furnished to us as the date of this
Commitment for Title Insurance. Final determination of the amount of premium will be made
at closing in accordance with the Rules and Regulations adopted by the State Board of
Insurance.
M2153 011931
Alamo Title Insurance
of Texas
GF No _
(Optional)
DELETION OF ARBITRATION PROVISION
(Not applicable to the Texas Residential Owner Policy)
ARBITRATION is a common form of alternative dispute resolution It can be a quicker and cheaper means to
settle a dispute with your Title Insurance Company However, if you agree to arbitrate, you give up your right to
take the Title Company to court and your rights to discovery of evidence may be limited in the arbitration
process in addition, you cannot usually appeal an arbitrator's award
Your policy contains an arbitration provision (shown below) It allows you or the Comoanv to reaulre arbitration
If the amount of Insurance Is $1,000,000 or less If you want to retain your right to sue the Company In case of a
dispute over a claim, you must request deletion of the arbitration provision before the policy Is Issued You can
do this by signing this form and returning It to the Company at or before the closing of your real estate trans-
action or by writing to the Company
The Arbitration provision in the Policy is as follows
"Unless prohibited by applicable law or unless this arbitration section is deleted by specific provision
in Schedule B of this policy, either the Company or the Insured may demand arbitration pursuant to
the Title Insurance Arbitration Rules of the American Arbitration Association Arbitrable matters may
include, but are not limited to, any controversy or claim between the Company and the Insured aris-
ing out of or relating to this Policy, and service of the Company in connection with its issuance or the
breach of a policy provision or other obligation All arbitrable matters when the Amount of Insurance
is $1,000,000 or less SHALL BE arbitrated at the request of either the Company or the Insured, unless
the insured is an individual person (as distinguished from a corporation, trust, partnership, associa-
tion or other legal entity) All arbitrable matters when the Amount of Insurance is in excess of
$1,000,000 shall be arbitrated only when agreed to by both the Company and the Insured Arbitration
pursuant to this Policy and under the Rules in effect on the date the demand for arbitration is made
or, at the option of the Insured, the rules in effect at the Date of Policy shall be binding upon the
parties The award may include attorney's fees only if the laws of the state in which the land is located
permit a court to award attorneys' fees to a prevailing party Judgment upon the award rendered by
the Arbitrator(s) may be entered in any court having jurisdiction thereof
The law of the situs of the land shall apply to an arbitration under the Title Insurance Arbitration
Rules
A copy of the Rules may be obtained from the Company upon request "
I request deletion of the Arbitration provision
SIGNATURE
DATE