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HomeMy WebLinkAbout1996-110P \WPDOCS\ORD\DOBBS ORD ORDINANCE NO l -11 Q AN ORDINANCE OF THE CITY OF DENTON, TEXAS, AUTHORIZING THE CITY MANAGER TO EXECUTE A CONTRACT BETWEEN THE CITY AND JACK A DOBBS AND JANICE M DOBBS FOR THE PURCHASE OF REAL PROPERTY IN ACCORDANCE WITH THE CAPITAL IMPROVEMENTS PROGRAM FOR DRAINAGE, AUTHORIZING THE EXPENDITURE OF FUNDS, AND PROVIDING FOR AN EFFECTIVE DATE THE CITY COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS SECTION I That it approves the attached agreement between the City of Denton and Jack A Dobbs and Janice M Dobbs for the purchase of real property in accordance with the capital improvements program for drainage and authorizes the City Manager to execute the agreement on behalf of the City SECTION II That it authorizes the expenditure of funds in accordance with the terms of the agreement SECTION III That this ordinance shall become effective immediately upon its passage and approval PASSED AND APPROVED this the day of 1996 ATTEST JENNIFER WALTERS, CITY SECRETARY BY ,% APPROVED AS TO LEGAL FORM HERBERT L PROUTY, CITY ATTORNEY BY /�" '� c REAL ESTATE CONTRACT STATE OF TEXAS COUNTY OF DENTON THIS CONTRACT OF SALE is made by and between Jack A Dobbs and wife Janice M Dobbs (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 808 Alice Street, 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 However, it is expressly understood that the seller, at their own expense (within 60 days after date of closing) remove the house, foundations, outbuildings and any other improvement necessary to leave the lot clear and free of any and all obstructions (concrete flat work, drives and sidewalk may remain, any and all landscaping, trees and natural vegetation will be permitted to remain) PURCHASE PRICE 1 Amount of Purchase Price The purchase price for the Property shall be the sum of $100,000 00 (minus closing cost such as cost of title policy, escrow fees, preparation of deed, etc) 2 Payment of Purchase Price An amount of $95,000 of the Purchase Price shall be payable in cash at the closing (minus cost as provided for within this contract), and the City of Denton will retain $5,000 until the lot is cleared as stated previously If lot is not cleared, the $5,000 will be used to clear lot Any excess funds will be paid to seller PURCHASER'S OBLIGATIONS The obligations of Purchaser hereunder to consummate the trans- actions contemplated hereby are sub3ect 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 ob]ection thereto shall be deemed to have been waived for all purposes 2 Surve Upon written request by Purchaser delivered to Seller contemporaneously with Purchaser's delivery of an executed original of this Agreement, Seller shall within twenty (20) days from the date hereof, at Purchaser's sole cost and expense, deliver to Purchaser 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 PAGE 2 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 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 1, 1996, 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 RecruirementiB 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 PAGE 3 I 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 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 Title Policy, 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 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 PAGE 4 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 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 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 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, 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 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 PAGE 5 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 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 PAGE 6 DATED this day of 1996 SELLER PURCHASER THE CITY OF DENTON, TEXAS By � By J k A Dobbs ed Benavides City Manager 215 E McKinney Denton, Texas 76201 anice M Dobbs APPROVED AS TO LEGAL FORM HERBERT L PROUTY, CITY ATTORNEY BY STATE OF TEXAS COUNTY OF DENTON T s instrument was acknowledged before me on this day of e , 1996 by Jack A Dobbs 0.��4/406'— No y ublic in and for Texas STATE OF TEXAS COUNTY OF DENTON / Th instrument was acknowledged before me on this day of 1996 by Janice M Dobbs Not&4Y Public in and for Texas PAGE 7 STATE OF TEXAS COUNTY OF DENTON This instrument is acknowledged before me, on this Rbh day of _ ,,(.,1 1996 by Ted Benavides City Manager, of the City of D tin on, 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 KEUZ4KMJ WILLIA!�iSNot yPublic n an for Texas CCMM SSM EVIRES May 78rZ AEE006DS PAGE 8 ,�i b- I to 44:r5 ' WARRANTY DEED THE STATE OF TEXAS § 060896 COUNTY OF DENTON § Jack A Dobbs and Janice M Dobbs, of the State of Texas, Grantors, for and in consideration of the sum of TEN AND NO/100 ($1000) DOLLARS and other valuable consideration to the undersigned paid by the Grantee herein named, the receipt of which is hereby acknowledged, have GRANTED, SOLD AND CONVEYED, and by these presents do GRANT, SELL AND CONVEY unto City of Denton, Texas, Grantee herein, of the County of Denton and State of Texas, whose marling address is 215 E McKinney, Denton, Texas 76201, all of the following described real property in Denton County, Texas, to -wit Lot, tract or parcel of land lying and being situated in the City and County of Denton, State of Texas, being known as the South 20 45 feet of Lot 18 and the North 54 0 feet of Lots 19 and 20, Block B, Daniel's Sub -Division, an Addition to the City of Denton, Denton County, Texas, according to the plat thereof recorded in Volume 350, Page 56, Deed Records of Denton County, Texas Reservations from and exceptions to conveyance and warranty. This deed is executed and delivered subject to all easements, reservations, conditions, covenants and restrictive covenants as the same appear of record in the office of the County Clerk of the county aforesaid It is also subject to any outstanding oil, gas and other mineral interest owned by others of record in the Office of the County Clerk of the county aforesaid TO HAVE AND TO HOLD the above described premises, together with all and singular the rights and appurtenances thereto in anywise belonging, unto the said Grantee, its successors or assigns forever, and we do hereby bind ourselves, our heirs, executors, administrators, successors or assigns to WARRANT AND FOREVER DEFEND all and singular the said premises unto the said Grantee, its successors or assigns, against every person whomsoever lawfully claiming or to claim the same or any part thereof EXECUTED this 2-1 day of August, 1996 Jack A obbs _ ice M Dobbs THE STATE OF TEXAS COUNTY OF DENTON This instrument was acknowledged before me on the �`t day of August, 1996, by Jack A Dobbs and Janice M Dobbs Notary Public, State of Texas AFTER RECORDING RETURN TO: L �,,,;is My Comm Exo S 12 90 City of Denton �Qgoydp00000+w0000 215 E McKinney Denton, TX 76201 ANW RE �� � PIiEIICR"Ewom Ev"Watot YxrNYiRE0111 1WOR NIM AUG 3 01996 d ^�a L � �� Filed for Record in" DFNTON COUNTY, TX HONORABIF TIM HODGFS/COUNTY CLFRK OnAu30 1996 At :19pm Doc/Num " 96-ROO60896 Doc/Type , WD Recordxnq: 7 00 Doc/Mgmt : 6.00 RF`ce,Lp N • 27429 Deputy Cheryl DENTEX TXTLE COMPANY 300 N. ELM, STE. 101 DENTON, TEXAS 76201 817-566-0282 FAX 817-566-6445 City of Denton ATTN Ted Benavides, City Manager 215 E McKinney Denton, Texas 76201 RE G F # 96-1644S PROPERTY 808 Alice Street, Denton, Texas Dear Mr Benavides Enclosed herewith please find your owner Policy of Title Insurance on the above referenced transaction Your original Warranty Deed was filed with the County Clerk of Denton County, Texas It will be returned to you by the County Clerk If you require anything further, please do not hesitate to call Thank you for selecting Dentex Title Company to assist you with your title insurance needs It has been our pleasure to do business with you Sincerely, C- D'Nita oah DENTEX TITLE COMPANY encl A10191(1/63) OWNER POLICY OF TITLE INSURANCE Issued by 428797 WVZ Alamo Title Insurance of Texas SUBJECT TO THE EXCLUSIONS FROM COVERAGE, THE EXCEPTIONS FROM COVERAGE CONTAINED IN SCHEDULE B AND THE CONDITIONS AND STIPULATIONS, ALAMO TITLE INSURANCE OF TEXAS, a Texas corporation, herein called the Company, Insures, as of Date of Policy shown in Schedule A, against loss or damage, not exceeding the Amount of Insurance stated in Schedule A, sustained or incurred by the insured by reason of 1 Title to the estate or interest described in Schedule A being vested other than as stated therein, 2 Any defect in or lien or encumbrance on the title, 3 Any statutory or constitutional mechanic's, contractor's, or materialman's lien for labor or material having its inception on or before Date of Policy, 4 Lack of a right of access to and from the land, 5 Lack of good and indefeasible title The company also will pay the costs, attorneys' fees and expenses incurred in defense of the title, as insured, but only to the extent provided in the Conditions and Stipulations ALAMO TITLE INSURANCE OF TEXAS • By �ti i By Secretary President FORM T 1 Owner Policy of Title Insurance EXCLUSIONS FROM COVERAGE \ The following matters are expressly excluded from the coverage of this policy and the Company will not pay loss or damage costs attorneys lees or expenses that arise by reason of f (a) Any law ordinance or governmental regulation (including but not limited to budding and zoning laws ordinances or regulations) restricting regulating prohibiting or relating to (I) the occupancy use or enjoyment of the land in the character dimensions or location of any improvement now or hereafter erected on the land (III) a separation in ownership or a change in the dimensions or area of the land or any parcel of which the land is or was a pan or (iv) environmental protection or the effect of any violation of these laws ordinances or governmental regulations except to the extent that a notice of the enforcement thereof or a notice of a defect hen or encumbrance resulting from a violation or alleged violation affecting the land has been recorded in the public records at Date of Policy (b) Any governmental police power not excluded by (a) above except to the extent that a notice of the exercise thereof or a notice of a defect lien or encumbrance resulting from a violation or alleged violation affecting the land has been recorded In the public records at Date of Policy 2 Rights of eminent domain unless notice of the exercise thereof has been recorded in the public records at Date of Policy but not excluding from coverage any taking that has occurred prior to Date of Policy which would be binding on the rights of a purchaser for value without knowledge 3 Defects hens encumbrances adverse claims or other matters (a) created suffered assumed or agreed to by the insured claimant (b) not known to the Company not recorded in the public records at Date of Policy but known to the insured claimant and not disclosed in writing to the Company by the insured claimant prior to the date the insured claimant became an insured under this policy (c) resulting in no loss or damage to the insured claimant (d) attaching or created subsequent to Date of Policy (a) resulting in loss or damage that would not have been sustained if the insured claimant had paid value for the estate or interest Insured by this Policy 4 The refusal of any person to purchase lease or lend money on the estate or interest covered hereby in the land described in Schedule A because of unmarketabillty of the title 5 Any claim which arises out of the transaction vesting in the person named in paragraph 3 of Schedule A the estate or interest insured by this policy by reason of the operation of federal bankruptcy state insolvency or other state or federal creditors rights laws that is based on either (I) the transaction creating the estate or nterest Insured by this Policy being deemed a fraudulent conveyance or fraudulent transfer or a voidable distribution or voidable dividend or (if) the subordination or recharactenzation of the estate or Interest insured by this Policy as a result of the application of the doctrine of equitable subordination or (III) the transaction creating the estate or interest Insured by this Policy being deemed a preferential transfer except where the preferential transfer results from the failure of the Company or its issuing agent to timely file for record the instrument of transfer to the insured after delivery or the failure of such iacon ation to impart notice to a purchaser for value or a judgment or hen creditor 7 CONDITIONS AND STIPULATIONS \ DEFINITION OF TERMS The following terms when used In this policy mean (a) Insured the insured named in Schedule A and subject to any rights or defenses the company would have had against the named insured those who succeed to the interest of the named insured by operation of law as distinguished from purchase including but not limited to heirs distributes$ devisees Survivors personal representatives next of kin or corporate partnership or fiduciary successors and specifically without limitation the following (I) the successors in interest to a corporation resulting from merger or consolidation or the distribution of the assets of the corporation upon pamal or complete liquidation (li) the pannersnip successors in interest to a general or limited partnership which dissolves but does not terminate (in) the successors in interest to a general or limited partnership resulting from the distribution of the assets of the general or limited partnership upon partial or complete liquidation IN) the successors in interest to a joint venture resulting from the distribution of the assets of the joint venture upon partial or complete liquidation (v) the successor or substitute trustee(s) of a trustee named in a written trust instrument or (vi) the successors in interest to a trustee or trust resulting from the distribution of all of pan of the assets of the trust to the beneficiaries thereof (b) insured claimant an insured claiming loss or damage (d) knowledge or known actual knowledge not constructive knowledge or notice that may be imputed to an insured by reason of the public records as defined In this policy or any other records which impart constructive notice of matters affecting the land (d) land the land described or referred to in Schedule A and improvements affixed thereto that by law constitute real property The term land does not include any property beyond the lines of the area described or referred to in Schedule A nor any right title interest estate or easement in abutting streets roads avenues alleys lanes ways or waterways but nothing herein shall modify or limit the extent to which a right of access to and from the land is insured by this policy (a) mortgage mortgage deed of trust trust deed or other security instrument (f) public records records established under state statutes as Date of Policy for the purpose of meaning constructive notice of matters relating to real property to purchasers for value and without knowledge With respect to Section f (a)(1v) of the Exclusions From Coverage public records also shall include environmental protection Ilene filed In the records of the clerk of the United States district court for the district in which the land is located (g) access legal right of access to the land and not the physical condition of access The coverage provided as to access does not assure the adequacy of access for the use intended CONTINUATION OF INSURANCE AFTER CONVEYANCE OF TITLE The coverage of this policy shall continue in force as of Date of Policy in favor of an insured only so long as the insured retains an estate or interest in the land or holds an Indebtedness secured by a purchase money mortgage gi on by a purchaser from the msuretl or only so long as the insured shall have liability by reason of covenants of warranty made by the insured in any transfer or conveyance of the estate or interest 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 pi) and indebtedness secured b/ a purchase money mortgage given to the insured NOTICE OF CLAIM TO BE GIVEN BY INSURED CLAIMANT The insured shall notify the Company promptly in writing (p in case of any litigation as set forth in Section ale) below or (if) in case knowledge shall come to an insured hereunder of any claim of title or interest that is adverse to the title to the estate or interest as insured and that might cause loss or damage for which the Company may be liable by virtue of this policy If prompt notice shall not be given to the Company then as to the insured all liability of the Company shall terminate with regard to the matter or matters for which prompt notice is required provided hov ever that failure to notify the Company shall in no case prejudice the rights of any insured under this policy unless the Company shall be prejudiced by the failure and then only the extent of the prejudice When after the date of the policy the insured notifies the Company as required herein of a hen encumbrance adverse claim or other defect in title to the estate or interest in the land insured by this policy that is not excluded or excepted from the coverage of this policy the Company shall promptly Investigate the charge to determine whether the lien encumbrance adverse claim or defect is valid and not barred by law or statute The Company shall notify the insured in writing within a reasonable time of its determination as to the validity or invalidity of the msured s claim or charge under the policy If the Company concludes that the lien encumbrance adverse claim or defect is not covered by this policy or was otherwise addressed in the closing of the transaction in connection with which this policy was issued the Company shall specifically advise the Insured of the reasons for its determination It the company concludes that the lien encumbrance adverse claim or defect is valid the Company shall take one of the following actions (1) institute the necessary proceedings to clear the lien encumbrance adverse claim or defect from the title to the estate as insured (if indemnify the insured as provided in this policy (ti) upon payment of appropriate premium and charges therefor issue to the insured claimant or to a subsequent owner mortgagee or holder of Me estate or Interest in the land insured by this policy a policy of title m=urance 0110100 exception for the hen encumbrance adverse claim or defect said policy to be in an amount equal to the current value of the property or if a mortgagee policy the amount of the loan (iv) Indemnify another title insurance company in connection with its issuance of a pohcyQes) of title Insurance without exception for the lien encumbrance adverse claim or defect (v) secure a release or other document discharging the lien encumbrance adverse claim or defect or (v1) undertake a combination of g) through (v) herein R-03 1000 1023 00 OWNER POLICY OF TITLE INSURANCE SCHEDULE A GF No.: 96-1644S Policy No.: 428797 Amount of Insurance. $100,000.00 Premium $1, 023. 00 Date of Policy: August 30, 1996 at 3:19 P M. 1. Name of Insured - CITY OF DENTON, TEXAS Property Catg. 0 County Code• 121 Issued with Policy No 2. The estate or interest in the land that is covered by this policy is• Fee Simple 3. Title to the estate or interest in the land is insured as vested in CITY OF DENTON, TEXAS 4 The land referred to in this policy is described as follows Lot, tract or parcel of land lying and being situated in the City and County of Denton, State of Texas, being known as the South 20.45 feet of LOT 18 and the North 54.0 feet of LOTS 19 and 20, BLOCK B, DANIEL'S SUB -DIVISION, an addition to the City of Denton, Denton County, Texas, according to the plat thereof recorded in Volume 350, Page 56, Deed Records of Denton County, Texas Alamo Title Insurance of Texas Dentex Title Company By 1 Authorized Countersignature FORM T-1. Owner Policy -Schedule A Effective January 1, 1993 G. F. No.. 96-16445 Policy No.: 428797 OWNER POLICY OF TITLE INSURANCE SCHEDULE B EXCEPTIONS FROM COVERAGE This Policy does not insure against lose or damage (and the Company will not pay costs, attorneys' fees or expenses) that arise by reason of the terms and conditions of the leases or easements insured, if any, shown in Schedule A and the following matters 1. The following restrictive covenants of record intemized below (the Company must either insert specific recording data or delete this exception). Volume 356, Page 70 and Volume 358, Page 425, Deed Records of Denton County, Texas (Deleting therefrom any restrictions indicating any preference, limitation, or discrimination based on race, color, religion, sex, handicap, familial status, or national origin.) 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 survivorship rights, if any, of any spouse of any insured. 4. Any titles or rights asserted by anyone, including, but not limited to, persona, 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 right of access to that area or easement along and across that area. 5 Standby fees, taxes and assessments by any taxing authority for the year 1996 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 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. 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 Alamo Title Insurance of Texas Form T-1 Owner Policy -Schedule B Effective January 1, 1993 U gto VID�I _ aare tir. — \Y Z � � � �-' X In O O 1i 3 Gin mX O N F W O V E d LL a E CFI g o H F w C N CC • J C O Xo�o �0_ O z ff I H �° CONDITIONS AND STIPULATIONS Continued 11 LIABILITY NONCUMULATIVE I Is expressly understood that the amount of Insurance under this policy shall be reduced by any amount the Company may pay 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 hereafter executed by an Insured and which is a charge or Ilan on the estate or Interest described or referred to in Schedule A and the amount so paid shall be deemed a payment under this policy to the Insured owner 12 PAYMENT OF LOSS (a) No payment shall be made without producing this policy for endorsement of the payment unless the policy has been lost or destroyed in which was proof of lose or destruction shall be furnished to the Satisfaction of the Company (b) When liability and the extent of Toes or damage has been definitely fixed In accordance with these Conditions and Stipulations the Noes or damage shall be payable within 30 days thereafter 13 SUBROGATION UPON PAYMENT OR SETTLEMENT (a) The Company's Right of Subrogation Whenever the Company shall have settled and paid a claim under this policy all right of subrogation shall vest in the Company unaffected by any act of the Insured claimant The Company shall be subrogated to and be entitled to all rights end remedies that the Insured claimant would have had against any person or property In respect to the claim had this policy not been Issued If requested by the Company the Insured claimant shall transfer to the Company all rights and remedies against any person or property necessary In order to perfect this tight of subrogation 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 or remedies If a payment on account of a Balm does not fully cover the lose of the Insured claimant the Company shall be subrogated to these rights and remedies In the proportion that the Company s payment beers to the whole amount of the lose If lose should result from any act of the Insured claimant, as Stated above that act shall not void this policy but the Company in that event shall be required to pay only that part of any losses Insured against by this policy that shall exceed the amount If any loot to the Company by reason of the Impairment by the insured claimant of the Company a right of subrogation (b) The Company's Rights Against Non Insured Obligors The Company's right of subrogation against non Insured collide shall exist and shall include, without limitation the rights of the Insured to Indemnities guaranties other policies of Insurance or bonds notwithstanding any terms or conditions contained In those Instruments that provide for subrogation rights by reason of this policy 14 ARBITRATION Unless prohibiter{ 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 Ilmled to any controversy or claim between the Company and the Insured Seeing out of or relating to this policy any service of the Company In connection with its Issuance or the breach of a policy provision or other obligation All arbitrable mailers when the Amount of Insurance Is $1 000 000 or lase SHALL BE erbltreted at the request of either the Company or the Insured unless the Insured Is an Individual person (as distinguished from a corporation trust partnership association 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 Date of Policy shall be binding upon the parties The award may include attorneys lees only if the laws of the state in which the land is located permit a court to award attorneys fees to a prevailing parry Judgment upon the award rendered by the Arbltralor(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 15 LIABILITY LIMITED TO THIS POLICY POLICY ENTIRE CONTRACT (a) This policy together with all endorsements If any attached hereto by the Company Is the entire policy and contract between the insured and the Company In mteryreting any provision of this policy this policy shall be construed as a whole (b) Any Claim of loss or damage whether or not based on negligence and which anse out of the status of the title to the estate or interest covered hereby or by any action asserting such claim shall be restricted to this policy (c) No amendment of or endorsement to this policy can be made except by a writing endorsed hereon or attached hereto signed by either the President a Vice President the Secretary and Assistant Secretary or validating officer or authorized signatory of the Company 18 SEVERABIUTY In the event any provision of the policy is held invalid or unenforceable under applicable law the policy Shell be deemed not to include that provision and all other provisions shall remain in full force and effect 17 NOTICES, WHERE SENT All notices required to be given the Company and any statement in writing required to be furnished the Company shall include the number of this policy and shall be addressed to the Company at 313 N W Loop 410 Suite 100 San Antonio Texas 78215 COMPLAINT NOTICE Should any dispute arise about your premium or about a claim that you have filed, contact the agent or write to the Company that Issued the policy If the problem is not resolved, you also may write the Texas Deportment of Insurance, P 0 Box 149091, Austin, T% 787144091, Fox No (512) 475.1771 This notice of complaint procedure Is for Information only and don not become a part or condition of this policy CONDITIONS AND STIPULATIONS Continued DEFENSE AND PROSECUTION OF ACTIONS DUTY OF INSURED CLAIMANT TO COOPERATE (a) Upon written request by the insured and subject to the options contained in Section 6 of these Conditions and Stipulations 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 adverse to the title or Interest as insured but only sus to those stated causes of action alleging a defect lien o encumbrance or other matter 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 and shall not be liable for end will not pay the fees of any other counsei 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 galley (b) The Company shall have the right a 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 to the estate or interest as insured or to prevent or reduce loss or damage to the insured The Company may take any appropriate action under the terms of this policy whether or not it shall be liable hereunder and shall not thereby concede liability or waive any provision of this policy If the Company shall exercise Its rights under this paragraph it shall do so diligently lot Whenever the Company shall have brought an action or interposed a defense as required or permitted by the provisions of this policy the Company may pursue any litigation to final determine inn by a court of con patent jurisdiction and expressly reserves the right in Its sole discretion to appeal from any adverse judgment or order (d) In all cases where this policy permit, or requires the Company to prosecute or provide for the defense of any action or proceeding the insured shall secure to the Company the right to so prosecute or provide defense in the action or proceeding and all appeals therein and permit the Company to use at Its option the name of the Insured for this purpose Whenever requested by the Company the Insured at the Company expense shall give the Company all reasonable aid (I) in any action or proceeding 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 to the estate or interest as insured If the Company Is prejudiced by the failure of the insured to furnish the required cooperation the Company s 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 PROOF OF LOSS OR DAMAGE In addition to and after the notices required under Section 3 of these Conditions and Stipulations have been provided the Company a proof of loss or damage signed and sworn to by the insured claimant shall be furnished to the Company within 91 days after the insured claimant shall ascertain the facts giving rise to the loss or damage The proof of loss or damage shall describe the defect in or hen or encumbrance on the title 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 If the Company is prejudiced by the failure of the insured claimant to provide the required proof of loss or damage the Company s 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 proof of loss or damage In addition the insured claimant may reasonably be required to submit to examination under oath by any authorized representative of the Company and shall produce for examination inspection and copying at such reasonable times and pieces as may be designated by any authorized representative of the Company all records books ledgers checks correspondence and memoranda whether bearing a date before or after Date of Policy which 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 records books ledgers checks correspondence and memoranda in the custody or control of a thud party which 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 other reasonably requested information or grant permission to secure reasonably necessary information from third parties as required in this paragraph 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 claim 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 attorneys fees and expenses incurred by the insured claimant which were authorized by the Company up to the time of payment or tender of payment and which the Company is obligated to pay Upon the exercise by the Company of this option ill liability and obligations to the insured under this policy other than to make the payment required shall terminate including any liability or obligation to defend prosecute or continue any litigation and the policy shall be surrendered to the Company for cancellation (b) To Pay or Otherwise Settle With Parties Other than the Insured or With the Insured Claimant (I) to pay or otherwise settle with other parties for or in the name of an insured claimant any claim insured against under this policy together with any costs attorneys fees and expenses incurred by the insured claimant which were authorized by the Company up to the time of payment and which the Company is obligated to pay or (if) 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 which were authorized by the Company up to the time of payment and which the Company is obligated to pay Upon the exercise by the Company of either of the options provided lot in paragraphs (b)(i) or (t) 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 DETERMINATION, EXTENT OF LIABILITY AND COINSURANCE This policy is a contract of indemnity against actual monetary joss or damage sustained or incurred by the insured claimant who has suffered loss or damage by reason of matters insured against by this policy and only to the extent herein described (a) The liability of the Company under this policy shall not ascend the least of (r) the Amount of Insurance stated in Schedule A (it) the difference between the value of the insured estate or interest a insured and the value of the insured estate or interest subject to the defect hen or encumbrance insured against by this policy at the data the insured claimant is required to furnish to Company a proof of loss or damage in accordance with Section 5 of these Conditions and Stipulations (b) In the event the Amount of Insurance slated in Schedule A at the Date of Policy is less than 80 percent of the value of the insured estate or interest or the full consideration paid for the land whichever is less or if subsequent to the Dale of Policy an Improvement is erected on the land which increases the value of the insured estate or interest by as least 20 percent over the Amount of Insurance stated in Schedule A then this Policy is subject to the following (I) where no subsequent improvement has been made as to any partal loss the Company shall only pay the loss pro rate in the proportion that the amount of insurance at Data of Policy bears to the total value of the insured estate or nterest at Date of Policy or ([I) where a subsequent Improvement has been made as to any partial loss the Company shall only pay the loss pro rate in the proportion that 120 percent of the Amount of Insurance stated in Schedule A bears to the sam of the Amount of Insurance stated in Schedule A and the amount expended for the improvement The provisions of this paragraph shall not apply to costs attorneys fees and expenses for which the Company is liable under this policy and shall only apply to that portion of any loss which exceeds n the aggregate 10 percent of the Amount of Insurance stated in Schedule A (c) The Company will pay only those costs attorneys ties and expenses incurred in accordance with Section 4 of these Conditions and Stipulations APPORTIONMENT If the land described in Schedule A consists of two or more parcels that are tot used as a single site and a joss is established affecting one or more of the parcels but not all the loss shall be computed and settled on a pro rate basis as if the amount of insurance under this policy was divided pro rate as to the value on Date of Policy of each separate parcel to the whole exclusive of any improvements made subsequent to Date of Policy unless a liability or value has Otherwise been agreed upon as to each parcel by the Company and the insured at the time of the Issuance of this policy and shown by an express statement or by an endorsement allached to this policy LIMITATION OF LIABILITY (a) It the Company establishes the title or remoras the alleged defect lien or encumbrance or cures the lack of a right of access to or from the land all as insured or takes action in accordance with Section 3 or Section 6 in a reasonab y diligent manner by any method including litigation and the completion of any appeals therefrom it shall have fully performed its obligations with respect to that matter and shall not be liable for any lass or damage caused thereby (b) In the event of any litigation including litigation by the Company or with he Compamys consent the Company shall have no Inability for loss or damage until there has been a final determination by a court of competent jurisdiction and disposition of all appeals therefrom adverse to the title as insured of The Company shall not be liable for loss or damage to any nsured for liability voluntarily assumed by the insured in settling any claim or suit without the prior written consent of the Company 10 REDUCTION OF INSURANCE REDUCTION OR TERMINATION OF LIABILITY All payments under this policy except payments made for costs attorneys fees and expenses shall reduce the amount of the insurance pro tanto (Continued on Reverse Side of Page)