Loading...
HomeMy WebLinkAbout1997-086T \WPDOCS\ORD\BARIA ORD ORDINANCE NO. l 1 -40FtO AN ORDINANCE AUTHORIZING THE CITY MANAGER TO EXECUTE A REAL ESTATE CONTRACT WITH RICHARD A. BARIA AND JO AN BARIA, FOR THE PURCHASE OF APPROXIMATELY 1.562 ACRE TRACT OF LAND KNOWN AS 1301 MYRTLE, DENTON, DENTON COUNTY, TEXAS FOR FUTURE EXPANSION OF THE CITY OF DENTON ELECTRIC LOCUST SUBSTATION, 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 Richard A. Baria and Jo An Baria for the purchase of approximately 1.562 acre of land known as 1301 Myrtle, Denton, Denton, County, Texas for the future expansion of the City of Denton Electric Locust Substation, a copy of which is attached hereto and incorporated by reference herein. SECrTION II. That the City Council hereby authorizes the expen- diture of funds in the manner and amount as specified in the agreement. SECTION III. That this ordinance shall become effective imme- diately upon its passage and approval PASSED AND APPROVED this the /?�' day of &jj4jj_,/ , 1992_. JAC MILLER, MAYOR ATTEST: JENNIFER WALTERS, CITY SECRETARY BY: APPROVED AS TO LEGAL FORM: HERBERT L. PROUTY, CITY ATTORNEY REAL ESTATE CONTRACT STATE OF TEXAS COUNTY OF DENTON THIS CONTRACT OF SALE is made by and between Richard A Baria and wife Jo An Baria (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, the tract of land known as 1301 Myrtle, Denton, Denton County, Texas, being more particularly described in Exhibit A attached hereto and incorporated herein by reference for all purposes together with all and singular the rights and appurtenances pertaining to the 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 PURCHASE PRICE 1 Amount of Purchase Price The purchase price for the Property shall be the sum of $90,00o 00 2 Payment of Purchase Price The full amount of the purchase price, minus any escrow, shall be payable in cash at the closing PURCHASER'S OBLIGATIONS The obligations of Purchaser hereunder to consummate the trans- actions 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 pre- liminary title report (the "Title Report") 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 re- ceives the Title Report that the condition of title as set forth in the title binder is or is not satisfactory, and in the event Pur- chaser states the condition 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 and the Escrow Deposit shall be forthwith returned by the Title Company to Purchaser, otherwise, this con- dition shall be deemed to be acceptable and any objection thereto shall be deemed to have been waived for all purposes 2 Survey 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 adjacent 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, ob- served, 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 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 There are no parties in possession of any portion of the Property as lessees, tenants at sufferance, or trespassers 2 Except for the prior actions of Purchaser, there is no pending or threatened condemnation or similar proceeding or asses- sment affecting 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 PAGE 2 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 May 1, 1997, 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 Purchaser a duly executed and acknowledged General Warranty Deed conveying good and marketable title in fee simple to all of the Property, free and clear of any and all liens, encumbrances, conditions, easements, assess- ments, 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 here- of, and 3 Any exceptions approved by Purchaser in writing B Deliver to Purchaser a Texas Owner's Title Policy at Seller's sole expense, issued by Dentex Title Company, (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 Purchaser's fee simple title to the Property sub]ect 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 Title Policy, provided, however PAGE 3 I 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 Seller, 2 The exception as to restrictive cove- nants 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 2 Purchaser's Requirements Purchaser shall pay the pay the consideration as referenced in the "Purchase Price" section of this contract at Closing in immediately available funds 3 Closing Costs Seller shall pay all taxes assessed by any tax jurisdiction through the date of Closing All other costs and expenses of closing in consummating the sale and purchase of the Property not specifically allocated herein shall be equally shared by Purchaser and Seller REAL ESTATE COMMISSION Any real estate commissions occasioned by the consummation of this Agreement shall be the sole responsibility of Seller, and Seller agrees to indemnify and hold harmless Purchaser from any and all claims for these commissions BREACH BY SELLER In the event Seller shall fail to fully and timely perform any of its obligations hereunder or shall fall to consummate the sale of the Property except Purchaser's default, Purchaser may either enforce specific performance of this Agreement or terminate this Agreement PAGE 4 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 MISCELLANEOUS 1 Assicrnment 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, war- ranties, 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 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, addres- sed to Seller or Purchaser, as the case may be, at the address set forth beneath the signature of the party 4 Texas Law to Annly 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 pro- visions contained in this Agreement shall for any reason be held to be invalid, illegal, or unenforceable in any respect, said in- validity, 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 subject matter 8 Time of Essence Time is of the essence in this Agreement PAGE 5 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 12 Time Limit In the event a fully executed copy of this Agreement has not been returned to Seller within thirty (30) days after Seller executes this Agreement and delivers same to Purchaser, Seller shall have the right to terminate this Agreement upon written notice to Purchaser DATED this /JRO�L- day of , 1997 SELLER By Richard'A baria J�1a J An Baria APPROVED AS TO LEGAL FORM HERBERT L PROUTY, CITY ATTORNEY BY A-4Q� �? PURCHASER THE CITY OF DENTON, TEXAS BY /fie `-�2�� Ted Benavides City Manager 215 E McKinney Denton, Texas 76201 PAGE 6 STATE OF TEXAS COUNTY OF DENTON This instrument was acknowledged before me on this �J day of h- nuaru , 1997 by Richard A Baria omenoaa000 '�• ¢ KIMBERLY ANN NANCBCK a NotrpPvalo8upolTar • my Coam W 11. 4:a STATE OF TEXAS COUNTY OF DENTON Notary Publit2rFin and for Texas 15�-) Thi instrument was acknowledged before me on this day of �ysu a , 1997 by Jo An Efaria KIMBERLY ANN HANCOCK Barbary PumloSoto dTon G Ci cc, YrCrnaE�y11-0420C0 Notary Publi 6 in and for Texas STATE OF TEXAS COUNTY OF DENTON Th instrument is acknowledged before me, on this & day of aw. �_� , 1997 by Ted Efenavides 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 AEE007FF JENNIFER K WALTERS N ry P lic in and for Texas +O1pPY P e(t Notary Public State of Texas My Commission Expires 1219 98 PAGE 7 4 r4 a, � , �, r r `r i� r "?rY�tr�-v v alb � � �1 � x r r ;rx i„ A991911119M THE FOLLOWING COMMITMENT FOR TITLE INSURANCE IS NOT VAUD UNLESS YOUR NAME AND THE POLICY AMOUNT ARE SHOWN IN SCHEDULE A, AND OUR AUTHORIZED REPRESENTATIVE HAS COUNTERSIGNED BELOW COMMITMENT FOR TITLE INSURANCE ISSUED BY Q GF No (7 - 10705 Alamo Title Insurance of Texas 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 DENTEX TITLE COMPANY 300 N ELM STE 101 DENTON, TEXAS 76201 ALAMO TITLE INSURANCE OF TEXAS , By President Authorized Signatory CONDITIONS AND STIPULATIONS 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 Title Insurance Effective January 1, 1993 A32157(1/93) Alam 'rifle Insurance of Texas TEXAS TITLE INSURANCE INFORMATION Title insurance Insures you against loss 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 relac16n a pArdidas resultantes de aertos neagos qua pueden afectar el titulo de su propisdad El Compromiso pare Segura de Tttulo as Is promesa de la compaMia aseguradora de titulos de emitir Is p6liza de seguro de titulo El Compromiso as un documento legal Usted dabs leerlo cuidadosamente y enterderlo completamente antes de Is fecha pare finaltzar 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 Commitment's 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 Band 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 provisions 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 1.800-292.5320 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 to 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 CanrNtmant Ink m stun Ettec9ve Jemary 1 1993 If you want to make your own inspection you must sign a Waiver of Inspection form and allow the Company to add this exception to your Policy The entire premium for a Policy must be paid when the Policy is issued You will not owe any additional premiums unless you want to increase your coverage at a later date and the Company agrees to add an Increased Value Endorsement IMPORTANT NOTICE FOR INFORMATION OR TO MAKE A COMPLAINT, CALL OUR TOLL -FREE TELEPHONE NUMBER 1.800-292.5320 ALSO, YOU MAY CONTACT THE TEXAS DEPARTMENT OF INSURANCE AT 1.800.282.3439 to obtain information on 1 filing a complaint against an insurance company or agent 2 whether an insurance company or agent is licensed, 3 complaints received against an insurance company or agent 4 policyholder rights, and 5 a list of consumer publications and services available through the Department YOU MAY ALSO WRITE TO THE TEXAS DEPARTMENT OF INSURANCE PO BOX 149104 AUSTIN, TEXAS 78714-9104 FAX NO (512) 475-1771 AVISO IMPORTANTE PARA INFORMACION O PARA SOMETER UNA QUEJA LLAME AL NUMERO GRATIS 1.800-292.5320 TAMBIEN PUEDE COMUNICARSE CON EL DEPARTAMENTO DE SEGUROS DE TEXAS AL 1.800.252.3439 para obtener informacion sabre 1 como someter una quela an contra de una compaNa de seguros o agents de seguros 2 si una compania de seguros o agents de seguros tier licenaa 3 quelas recibidas en contra de una compania de seguros o agents de seguros, 4 los derechos del asegurado, y 5 una hats de publicaciones y servicios pars consumidores disponibles a traves del Departamento TAMBIEN PUEDE ESCRIBIR AL DEPARTAMENTO DE SEGUROS DE TEXAS PO BOX 149104 AUSTIN TEXAS 78714-9104 FAX NO (512) 475-1771 THE FOLLOWING COMMITMENT FOR TITLE INSURANCE IS NOT VALID UNLESS YOUR NAME AND THE POLICY AMOUNT ARE SHOWN IN SCHEDULE A, AND OUR AUTHORIZED REPRESENTATIVE HAS COUNTERSIGNED BELOW COMMITMENT FOR TITLE INSURANCE SCHEDULE A EFFECTIVE DATE. December 31, 1996 GF NO : 97-1020S COMMITMENT NO.: , issued January 17, 1997 at 8: 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: $90,000.00 Proposed Insured: CITY OF DENTON (b.) OWNERS POLICY OF TITLE INSURANCE - ONE -TO -FOUR FAMILY RESIDENCES (Form T-1R) Policy Amount. Proposed Insured: (c.) 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: RICHARD A. BARIA and JO AN BARIA (AS TO TRACT ONE) RICHARD ARLEN BARIA, SR (AS TO TRACT TWO and TRACT THREE) 4. Legal description of the land: All those certain tracts of land being situated in the A. Hill Survey, Abstract No 623, Denton County, Texas, and being more particularly described in Exhibit "A" attached hereto and made a part hereof DentexlTTiitle Company By Authorized Countersignature FORM: Commitment -Schedule A Effective January, 1 1993 EXHIBIT "A" TRACT ONE: All that certain p.734 acre tract or parcel of land situated in the A. HILL SURVEY, ABSTRACT FORBER 623, Denton County, Tosser said tract being A part Of e called 1.562 acre sat shorn by Dead to Richard A. Baria and recorded in Volume 599, page 574 of the Deed Records of Denton County, Texas, and being more particularly described as follower BEGINNING, for the Northwest corner of the tract being described herein at a fence corner post in the East right of way of Myrtle Streets THENCE North 89 degrees 120 48e East along and with a fence a distance of 159 53 feet to an iron pin not in the grounds THENCE South 00 degrees 32' 060 Kest a distance of 203.05 feet to an iron pin set in the ground in a fence lines THENCE North 89 degrees 500 290 Nest with said fence a distance of 157.62 feet to a fence corner post in said East right of way of Myrtle Street; THENCE North along said right of way a distance of 200.41 feet to the POINT OF BEGINNING TRACT TWO; All that certain 0.374 acre tract or parcel of land situated in the A HILL SURVEY, ABSTRACT NUMBER 623, Denton County, Texas; said tract being a part of a eallud 1.562 acre tract shown by Deed to Richard A. Baria and recorded in Volume 599, page 574 of the Deed Mcords of Denton County, Texas, and being more particularly described as follower BEGINNING, for the Northwest corner of the tract being described herein at an Iron pin not In the ground In a fence line at a point North 89 degrees 12' 480 East 159.53 feet and South 0 degrees 320 06• Nest 103.24 feet from the Northwest corner of said "via tract. THENCE North 69 dprees 020 12e Bast a distance of 181.57 feet to an iron pin set in the ground In the Northwest right of way of Le^use Street, THENCE South 22 degreas 33' 229 west along said right of way a distance of 111.80 feet to a fence corner pests THENCE North 89 degrees 500 290 west with a fence a distance of 139 59 feel to an Leon pin set in the grounds rhocne North 0 degrees 32' 060 East a distance Of 99.81 feet to the POINT OF BEGINNING. Page 1 of 2 EXHIBIT "A" CONTINUED TRACT THREE. All that ceeta&a. 0.47E acre tract or parcel of land Situated in the A. HILL SURVEY, ABSTRACT NUMBER 623, Denton County, Texass said tract being a part of a called 1.562 acre tract shown by Deed to Richard A. earia and recorded in Volume 599, page $74 of the Deed Records of Denton County, Texas, and being more particularly described as follows! BEGINNING, for the Northwest corner of the tract being described herein at an iron pin, sat at a point North 69 degrees 120 IB• East 159.63 fast from the Northwest corner of said Berl& tract in an East -Nest fence line, THENCE North E9 degrees 12' 6E0 Bast with said fence a distance of 223.49 feet to a fence corner post In the Northwest right of way of Locust Streets THENCE South 22 degrees 330 220 west along said right of way a distance of 111.00 feet to an iron pin not In the grounds THENCE South 69 degrees 02' 129 Nest a distance of 181.57 feet to an iron pin not in the grounds THENCE North 00 degrees 321 066 Bast a distance of 103.24 feet to the POINT OF BEGINNING. Page 2 of 2 COMMITMENT FOR TITLE INSURANCE SCHEDULE B EXCEPTIONS FROM COVERAGE G. F. No.: 97-1020S In addition to the Exclusions and Conditions and Stipulations, your Policy will not cover loss, costa, 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 suvivorship 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. Any visible and apparent easements over and across said property, the existence of which does not appear of record. b. Any part or portion of the herein described property, lying within the boundaries of a public or private road or right of way. C. Rights of parties in possession. (On OTP only) d Any outstanding oil, gas and other mineral interest owned by others of record in the office of the County Clerk of Denton County, Texas a. Easement as set forth in a deed from RICHARD A. BARIA ET UX to RICHARD A. FORM: Commitment -Schedule B Effective January 1, 1993 CONTINUATION OF SCHEDULE G F. No.: 97-1020S BARIA, JR. ET UB, by instrument filed OCT. 12, 1984 and recorded in Volume 1502, Page 550, REAL PROPERTY Records, Denton County, Texas. FORD Commitment -Schedule B Effective January 1, 1993 COMMITMENT FOR TITLE INSURANCE SCHEDULE C G. F. No.. 97-1020S Your Policy will not cover lose, costa, 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." 8 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 disburement. "Good funds" is defined in part set 1. cash or wire transfers; 2. certified checks, cashier's checks and teller's checke; 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 CONTINUATION OF SCHEDULE C G. F No.: 97-1020S 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 Deed of Trust dated APE. 19, 1985, executed by RICHARD A. BAHIA, JR. AND WIFE, JANET BARIA, for the benefit of CITIZENS NATIONAL BANK, securing indebtedness in the original principal amount of $15,000.00, said Deed of Trust recorded on MAY 3, 1985 in Volume 1627, Page 512, Real Property Records of Denton County, Texas. REQUIREMENT: RELEASE (AS TO TRACT TWO and TRACT THREE) 10 Quitclaim deed from Richard Arlen Baria, Jr. and Janet Lee Baria to Richard Arlen Bari&, Sr. recorded Aug. 1, 1988 in Volume 2424, Page 248, Real Property Records of Denton County, Texas. REQUIREMENT: Special Warranty Deed FORM. Commitment -Schedule C Effective January 1, 1993 Alamo Title Insurance of Texas COMMITMENT FOR TITLE INSURANCE GF NO 97-1020S 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 Squilia, 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 104 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; Linda Dudley, 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 disclosure will be made to you Additionally, the name of any person, firm or corporation receiving any sum from the settlement of this transaction will be disclosed on the closing or settlement statement You are further advised that the estimated title premium* is, Owner Policy 940 00 Mortgage Policy Endorsement Charges Total $940:00 Of this total amount: 19 % will be paid to the policy issuing Title Insurance Company; wi 1 be retained by the Title Insurance Agencyy and the remainder of the�imateapremium 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. M21W (11/93) Alamo Title Insurance of Texas GFNo_ (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 require 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 alclaim, 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