HomeMy WebLinkAbout2003-104ORDINANCE NO. 6�00—/0`_
AN ORDINANCE APPROVING A REAL ESTATE CONTRACT BETWEEN THE
CITY OF DENTON AND DENTON COUNTY RELATING TO THE PURCHASE OF
THE COUNTY'S ONE HALF UNDIVIDED INTEREST IN 2.93 ACRES OF LAND
LOCATED IN THE EUGENE PUCHALSKI SURVEY, ABSTRACT NO. 996,
DENTON COUNTY, TEXAS, AND BEING PART OF A TRACT OF LAND AS
DESCRIBED BY DEED TO THE CITY OF DENTON, TEXAS AND DENTON
COUNTY, AS RECORDED IN VOLUME 383, PAGE 187, DEED RECORDS,
DENTON COUNTY TEXAS,; AUTHORIZING THE EXPENDITURE OF FUNDS
THEREFORE; AND PROVIDING AN EFFECTIVE DATE.
THE COUNCIL OF THE CITY OF DENTON, TEXAS, HEREBY ORDAINS:
SECTION 1. The City Manager, or his designee, is hereby authorized to execute
a Real Estate Contract between the City and Denton County, Texas in substantially the
form of the Real Estate Contract which is attached hereto and made a part of this
Ordinance for all purposes, for the purchase of the County's one-half interest of an
approximately 2.93 acre tract to facilitate an exchange of land for the future Ironhorse
Electric Substation.
SECTION 2. The City Manager is authorized to make the expenditures as set
forth in the attached Real Estate Agreement.
PASSED AND APPROVED this the day of 2003.
ATTEST:
JENNIFER WALTERS, CITY SECRETARY
TO LEGAL
P-W
ATTORNEY
&4,
EULINE BROCK, MAYOR
REAL ESTATE CONTRACT
STATE OF TEXAS
COUNTY OF DENTON §
THIS CONTRACT OF SALE is made by Denton County, Texas a
political subdivision of the State of Texas (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 of its one half
undivided interest in and to that certain tract, lot or parcel of
land described in "EXHIBIT All, attached herein, 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.
PURCHASE PRICE
1. Amount of Purchase Price. The
the Property shall be the sum
Five Hundred Dollars and No
"Purchase Price").
total purchase price for
of Twenty One Thousand
Cents ($21,500.00) (the
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, Purchaser, at Purchaser's sole cost and expense,
shall have caused the Title Company (hereinafter defined) to
issue a owner's 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 or elects not to do so within ten (10) days
after receipt of written notice, Purchaser at its option, may
grant Seller additional time to cure, terminate this Agreement or
accept the condition of title and proceed to closing.
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 or
elects not to do so within ten (10) days after receipt of written
PAGE 2
notice, Purchaser, at its option may elect to terminate this
Agreement, grant Seller additional time to cure, or proceed to
closing. 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.
CLOSING
The closing shall be held at the office of Texas Title
Company, 2215 S. Loop 288, Suite 320, Denton, Texas 76205 on or
before April 3Q 2003, 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
deliver to the City of Denton a duly executed and acknowledged
Special Warranty Deed conveying good and indefeasible fee simple
title to the Property, free and clear of any and all liens,
encumbrances, conditions, assessments, and restrictions, except
for any exceptions approved by Purchaser pursuant to Purchaser's
Obligations hereof and any exceptions approved by Purchaser in
writing.
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. All costs and expenses of closing in
consummating the sale and purchase of the Property not
specifically allocated herein shall be paid by Purchaser, except
for Seller's attorney fees.
REAL ESTATE COMMISSION
Seller and Purchaser represent and warrant to each other that
neither has retained a broker for this transaction and that there
PAGE 3
•
are no broker or real estate fees due as a result of the
consummation of this contract.
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 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,
addressed to Seller or Purchaser, as the case may be, at the
address set forth beneath the signature of the party.
PAGE 4
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 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 requirement's, 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 Purchasers own selection.
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 Sel-
PAGE 5
ler, Purchaser shall have the right to terminate this Agreement
upon written notice to Seller.
13. Effective Date. The term "Effective Date" means the
latter of the dates on which this Contract is signed by either
Sellers or Purchaser, as indicated by their signature below. If
the last party to execute this Contract fails to complete the
date ,of execution below that party's signature, the date the
Title Company acknowledges receipt of a copy of this fully
executed contract is the Effective Date.
IN WITNESS WHEREOF, Seller and Purchaser have executed this
contract to be effective as to the Effective Date.
DENTON rY, TEXAS
BY:
Hon. Mar orn
Denton County Judge
Acting on behalf of and
By authority of the
Commissioners Court of
Denton County, Texas
Address:
Date: �-3 — //— 63
ATTEST: J
APPROVED AS TO FORMi
PAGE 6
I
•
CITY OF DENTON, TEXAS
BY: (�' I�L dw,
Mi ael . Conduff
C' y Ma ager
215 E. McKinney
Denton, Texas 76201
ATTEST:
JENNI�F//E��yR�WALTER�S,�CITY
� SECRETARY
BY: BY: �j/� Im �LL�UA(GL�//!/dL &ff
APPROVED AS FORM:
HERBERT 4WCITY ATTORNEY
BY:
PAGE 7
I]
ACKNOWLEDGEMENT
STATE OF TEXAS 5
COUNTY OF DENTON 5
This instrument is acknowled ed ofpre me t��s day of
g iv �02TZc f/ _ A4 C n
200� by te�ra�-�r-2ei rfNCi y Manager, of
the 6ity of Denton, a municipal corporation, on behalf of said
municipal corporation
JANE E. RICHARDSON
Notary Public, State of Texas
i f ` My Commission Expires
June 27, 2005
STATE OF TEXAS
COUNTY OF DENTON 5
No ary Public in and for
the State of Texas
This �t is acknowledged before. me, on this _L day of
, 2001 by Mary Horn, County Judge of the
Denton County, Texas, on behalf of said couyty.
T. E. REECE
Notary Public
STATE OF TEXAS
My Comm. Exp, 08/17/2004
the
PAGE 8
ublic in and for
e of Texas
TITLE COMPANY ACCEPTANCE AND ACKNOWLEDGEMENT
The Title Company acknowledges receipt of the fully executed
Contract on %' day of 2003.
TITLg COMPANY:
Name: Texas Title Company
Address: 2215 S. Loop 288, Suite 320
Denton, Texas 76205
Telephone:, 940-382-8251
By:
Printed ame:
Title:
PAGE 9
Exhibit A
LEGAL DESCRIPTION for a
2.930Acre tract out of the
EUGENE PACHALSKISURVEYA-996
Denton, Denton County, Texas
Being all that certain remainder tract, parcel orlot ofland out of the Eugene Pachalski SurveyA-996 in the City of
Denton, Denton County, Texas described by deed recorded in Volume 383, Page 187, Deed Records, Denton
County, Texas and more particularly described as follows:
BEGINNING at a one-half inch iron rod found for the common reentrant corner of the tract described by deed
recorded in Volume 1796, Page 601 Deed Records, Denton County Texas and in the south right-of-way line of
West Prairie Street at the west end of said street;
THENCE: with the said south right-of-way fine of Prairie Street, S 88°II 20" E, a distance of 239.28 feet to a
five -eights inch iron rod set for a corner, in the southwest right-of-way line of the Burlington Northern — Santa Fe
Railway Co; from which a TXDOT Brass Disk set in concrete bears S 880 111f, 624.1 feet;
THENCE: with the said railroad southwest right -of way fine, S 21 °56' 03" E, a distance of 427.79 feet to a five -
eights inch iron rod set for corner in the north line of a tract described by deed recorded in Volume 1796, Page 601
Deed Records, Denton County, Texas; from which a TXDOT Brass Disk set in concrete bears S 88 ° 16' E, 489.9
feet, -
THENCE: leaving the said railroad right-of-way line and with the said common line, N 88 °l6' 25" 4V, a distance of
411.99 feet to a one-half inch iron rod found for a corner,
THENCE. -continuing with the said line, N 01 °5139"E, a distance of 392.19 feet to the place of beginning and
containing 2.930 acres of land more or less as surveyed by John hall jr rpls k 1970 during the month of Sept 2002.
(see attached survey sketch H-001)
"Dedicated to Quality Sert-ice"
wnw.cityojlenton.com
*350 05504
090916
SPECIAL WARRANTY DEED
Date: awLj :3C) , 2003
Grantor: Denton County, Texas
Grantee: City of Denton, Texas
Grantee's Mailing Address (including county):
City of Denton
601 East Hickory Street
Denton, Texas 76205
Denton, County
Consideration:
TWENTY ONE THOUSAND FIVE HUNDRED DOLLARS AND NO CENTS
($21,500.00) and other good and valuable consideration.
Property (including any improvements):
Being a 2.930 acre parcel of land situated in the Eugene
Puchalski Survey, Abstract No. 996, Denton County, Texas, being
more particularly described in "EXHIBIT All attached hereto and by
this reference being made a part hereof for all purposes.
Reservations From and Exceptions to Conveyance and Warranty:
Easements, rights -of -way, and prescriptive rights, whether of
record or not; all presently recorded instruments, other than
liens and conveyances, that affect the property.
GRANTOR , for the consideration, receipt of which is hereby
acknowledged, and subject to the reservations from and exceptions
to conveyance and warranty, grants, sells and conveys to Grantee
the property, together with all and singular the rights and
appurtenances thereto in any wise belonging, to have and to hold
it to GRANTEE, GRANTEE'S, successors or assigns forever. GRANTOR
binds GRANTOR and GRANTOR'S heirs, executors, administrators and
successors to warrant and forever defend all and singular the
property to GRANTEE and GRANTEE'S, successors and assigns against
every person whomsoever lawfully claiming or to claim the same or
any part thereof, by, through or under GRANTOR, but not otherwise.
9350 05505
When the context requires, singular nouns and pronouns
include the plural.
GRANTOR:
BY:
Hon. Mary orn
Denton County Judge
Acting on behalf of and
By authority of the
Commissioners Court of
Denton County, Texas
ACKNOWLEDGMENT
THE STATE OF TEXAS 9
COUNTY OF DENTON 9
This instrument was acknowledged before me this -it day of
2003 by Mary Horn, County Judge of the Denton
County, Texas, on behalf of said county.
IliIlit,
Notary Public in and for
the State of Texas
`FMB
'f.,����ER
5350 05506
City
of
DEN TON Exhibit A
LEGAL DESCRIPTION for a
2.930 Acre tract out of the
EUGENE PACHALSKI SURVEYA-996
Denton, Denton County, Texas
Being all that certain remainder tract, parcel or lot of land out of the Eugene Pachalski Survey A-996 in the City of
Denton, Denton County, Texas described by deed recorded in Volume 383, Page 187, Deed Records, Denton
County, Texas and more particularly described as follows:
BEGINNING at a one-half inch iron rod found for the common re-entrant corner of the tract described by deed
recorded in Volume 1796, Page 601 Deed Records, Denton County Texas and in the south right -of way line of
West Prairie Street at the west end of said street;
THENCE: with the said south right -of way line of Prairie Street, S 88' 1120" E, a distance of 239.28 feet to a
five -eights inch iron rod set for a corner, in the southwest right -of way line of the Burlington Northern — Santa Pe
Railway Co; from which a TXDOT Brass Disk set in concrete bears S 88' 1 PE, 624.1 feet;
THENCE: with the said railroad southwest right-of-way fine, S 21 a56' 03" E, a distance of 427.79 feet to a five -
eights inch iron rod set for corner in the north line of a tract described by deed recorded in Volume 1796, Page 601
Deed Records, Denton County, Texas; from which a TXDOT Brass Disk set in concrete bears S 88 ° 16' E, 489.9
feet;
THENCE: leaving the said railroad right-of-way line and with the said common line, N 88 ° 16' 25" W, a distance of
411.99 feet to a one-haff inch iron rod found for a comer;
THENCE.- continuing with the said fine, N 01052 39" E, a distance of 392.19 feet to the place of beginning and
containing 2,930 acres of land more or less as surveyed by john nail jr rpls h 1970 during the month of Sept 2002.
Isee attached survey sketch H-0011
"Dedicated to Quality Service"
unmcityofitenton.co n
G
9350 014118
PARTIAL RELEASE OF LEASE
STATE OF TEXAS
KNOW ALL MEN BY THESE PRESENTS:
COUNTY OF DENTON
090'731
WHEREAS on January 30, 1953 the CITY OF DENTON, a municipal corporation, and
DENTON COUNTY, both being bodies politic and corporate, as Lessors, did lease to the
TEXAS NATIONAL GUARD ARMORY BOARD, a body politic and corporate, as Lessee, a
tract of land situated in Denton, Denton County, containing 10 acres, more or less, said lease
being recoided in Volume 388 Page 23, Deed Records of Denton County, Texas, the "leased
premises;" and
WHEREAS said lease was for a term of ninety-nine (99) years; and
WHEREAS on April 30, 2003 the County of Denton conveyed to the City of Denton all of the
County's right, title, and interest in 2.930 acres of the 10 acres tract described above; and
WHEREAS the name of the Texas National Guard Armory Board was changed to the TEXAS
MILITARY FACILITIES COMMISSION in 1997 by the 75`s Legislature; and
WHEREAS the City of Denton, Lessor, has requested a release from the lease of Lessee's
interest in the 2.930 acre tract; and
WHEREAS Lessee desire to cancel and release the requested portion of the leased premises and
to convey all of its interest in the released portion to Lessor so that Lessor may use the released
portion for a public purpose.
NOW THEREFORE for and in consideration of the sum of TEN AND NO/100 DOLLARS
($10,00) and other good and valuable consideration, the receipt and sufficiency of which is
hereby acknowledged the TEXAS MILITARY FACILITIES COMMISSION, GRANTOR,
whose address is Camp 2200 W. 35' Street, Building 64, Austin, TX 78703-1227 does hereby
release, transfer, assign, deliver, and quitclaim unto the CITY OF DENTON, TEXAS,
GRANTEE, whose address is City Hall East, 601 East Hickory Street; Suite B, Denton, TX
76205 all of Grantor's right, title, and interest in and to the tract or parcel of land described in
EXHIBIT "A" attached hereto and incorporated by this reference as though set forth herein
verbatim.
Executed on the 3`� day of June , 2003.
5350 p4119
TEXAS MILITARY FACILITIES COMMISSION
—Ad A, X
BY: A. Wells, Executive Director
STATE OF TEXAS
COUNTY OF TRAVIS
This instrument was acknowledged before me on the arc` day of J ti Q 2003 by
Jq P lls, Executive Director of the Texas Military Facilities Commission, on behalf of said
AFTER RECORDING, PLEASE RETURN TO:
Paul Williamson, Manager of Real Estate
City of Denton Engineering Department
City Hall East
601 West Hickory; Suite B
Denton, TX 76205
Notary Public, State oV Texas
�x-Xxxxxxxxxx�
j( TINA Nt BURFORD
J(1 Notary Public State of Texas X
My Commission Expires K
01ECEMBER D' 2003 K
e�zyr xae�rac_-�exx'1
PARTIAL RELEASE OF LEASE PAGE 2
3--50 12'0
Being all that certain remainder tract, parcel or lot of land out of the Eugene Pachalski Survey A-996 in the City of
Denton, Denton County, Texas described by deed recorded in Volume 383, Page 187, Deed Records, Denton
County, Texas and more particularly described as follows:
BEGINNING at a one-half inch iron rod found for the common re-entrant corner of the tract described by deed
recorded in Volume 1796, Page 601 Deed Records, Denton County Texas and in the south right-of-way line of
West Prairie Street at the west end of said street;
THENCE.- with the said south right-of-way ling of Prairie Street, S 88 ° 1120" E, a distance of 239.28 feet to a
five -eights inch iron rod set for a corner, in the southwest fight -of -way line of the Burlington Northern — Santa Fe
Railway Co; from which a TXDOT Brass Disk set in concrete bears S 88 ° 11 ' E, 624.1 feet;
THENCE.' with the said railroad southwest right -of way line, S 21 °55' 03" E, a distance of 427.79 feet to a five -
eights inch iron rod set for corner in the north fine of a tract described by deed recorded in Volume 1796, Page 601
Deed Records, Denton County, Texas; from which a TXDOT Brass Disk set in concrete bears S 88° WE, 489.9
feet, -
THENCE leaving the said railroad right-of-way line and with the said common line, N 88° 16'25" W, a distance of
411.99 feet to a one-half inch iron rod found for a corner;
THENCE.- continuing with the said line, N 01'52 39" E, a distance of 392.19 feet to the place of beginning and
containing 2.930 acres of land more or less as surveyed by john nall jr rpls # 1970 during the month of Sept 2002.
EXHIBIT
IssuED By OWNER'S POLICY OF TITLE INSURANCE
Lw-vii lejnsurance Crporation
SUBJECT TO THE EXCLUSIONS FROM COVERAGE, THE EXCEPTIONS FROM COVERAGE CONTAINED IN SCHEDULE B AND THE
CONDITIONS AND STIPULATIONS, LAWYERS TITLE INSURANCE CORPORATION, a Virginia 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.
IN WITNESS WHEREOF, LAWYERS TITLE INSURANCE CORPORATION has caused its corporate name and seal to be hereunto affixed by its duly
authorized officers, the Policy to become valid when countersigned by an authorized officer or agent of the Company.
LAWYERS TITLE INSURANCE CORPORATION
iy: 9s rl
Attest: Z� s Z By:
C,/J
Secretary rot +. 1925 1''4? President
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' fees or
expenses which arise by reason of:
i. (a) Any law, ordinance or governmental regulation (including but not limited to building and zoning laws, ordinances, or regulations) restricting,
regulating, prohibiting or relating to (i) the occupancy, use, or enjoyment of the land; (ii) 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 part; 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, lien 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, liens, 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) resuhing in no loss or damage to the insured claimant;
(d) attaching or created subsequent to Date of Policy;
(e) 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
unmarketability 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 interest Insured by this Policy being deemed a fraudulent conveyance or fraudulent transfer or a voidable
distribution or voidable dividend,
(ii) the subordination or recharacterization 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 recordation to impart notice to a purchaser for value or a judgment or lien creditor.
Texas Owner's Policy T-1 (Rev. 04/04/02)
Cover Page
^Mr IKIAr
CONDITIONS AND STIPULATIONS
1. 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, distnbutees, 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, limited liability company or
limited liability partnership resulting from merger or consolidation or conversion or the
distribution of the assets of the corporation or limited liability company or limited liability
partnership upon partial or complete liquidation;
(ii) the successors in interest to a general or limited partnership or limited
liability company or limited liability partnership which dissolves but does not terminate;
(iii) 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;
(iv) 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 tmst resulting from the
distribution of all or part of the assets of the trust to the beneficiaries thereof.
(b) 'insured claimant:, an insured claiming loss or damage.
(c) "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 refereed 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.
(1) 'public records" records established under state statutes at Date of Policy
for the purpose of imparting constructive notice of matters relating to real property to
purchasers for value and without knowledge. With respect to Section 1(a)(iv) of the
Exclusions From Coverage, "public records" also shall include environmental protection
liens fled 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.
2. 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 given by a purchaser from the
insured, 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 (if) an indebtedness secured by a purchase money
mortgage given to the insured.
3. NOTICE OF CLAIM TO BE GIVEN BY INSURED CLAIMANT.
The insured shall notify the Company promptly in writing (i) in case of any litigation
as set forth in Section 4(a) below, or (ii) 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, however, 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 to the extent of the
prejudice.
When, after the date of the policy, the insured notifies the Company as required
herein of a lien, 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 insured'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. If the Company concludes that the lien,
encumbrance, adverse claim or defect is valid, the Company shall take one of the
following actions: (i) institute the necessary proceedings to clear the lien, encumbrance,
adverse claim or defect from the title to the estate as insured; (ii) indemnity the insured
as provided in this policy; (!if) upon payment of appropriate premium and charges
therefor, issue to the insured claimant or to a subsequent owner, mortgagee or holder of
the estate or interest in the land insured by this policy, a policy of title insurance without
exception for the lien, 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; IN) indemnify another title insurance company in connection with its
issuance of a Policy(ies) 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 (vi) undertake a combination of (i) through (v)
herein.
4. 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
as to those stated causes of action alleging a defect, lien or 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
and will not pay the fees of any other counsel. The company will not pay any fees, costs
or expenses incurred by the insured in the defense of those causes of action that allege
matters not insured against by this policy.
(b) The Company shall have the right, at its own cost, to institute and prosecute
any action or proceeding or to do any other act that in its opinion may be necessary or
desirable to establish the title to the estate or interest, as insured, or to prevent or
reduce loss or damage to 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 diligently.
(c) 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 determination by a court of competent 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 permits 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 herein, and 1lerrnit the Company to use, at its option, the name of the insured
for this purpose. Whenever requested by the Company, the insuretl, at the Companys
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 affecting settlement, and (if) 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.
5. 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 shall ascertain the facts giving rise to the loss or damage. The proof of
loss or damage shall describe the defect in, or lien 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 places
as may be designated by any authorized representative of the Company, all records,
books, ledgers, checks, correspondence and memoranda, whether bearing a sate
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 third 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
tenninate any liability of the Company under this policy as to that claim.
S. 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 Tentler 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, all liability and obligations
to the insured under this policy, other than to make the payment required, shall
terrninate, including any liability or obligation to defend, prosecute; or continue any
litigation, and the policy shall be surrendered to the Company for cancellation.
CONTROL NUMBER B 11- 0111 � 9 0,
continued on nextpage of cover sheet
0121504 CI 121 $*****21,500.00 $****340.00 1000
LAWYERS TITLE INSURANCE CORPORATION
---------------------
OWNER POLICY OF
TITLE INSURANCE
---------------------
DATE OF AMOUNT OF
CASE NUMBER POLICY INSURANCE POLICY NUMBER
2001 DE 121504-G (400)/cs 6/10/2003 $*****21,500.00 0121504
SCHEDULE A
1. Name of Insured:
CITY OF DENTON
2. The estate or interest in the land that is covered by this policy is:
FEE SIMPLE
AND
LEASEHOLD ESTATE as created in Lease Agreement by and between CITY OF
DENTON, TEXAS and the COUNTY OF DENTON, TEXAS, as Lessor, and TEXAS
NATIONAL GUARD ARMORY BOARD, as Lessee, dated January 30, 1953, filed May
4, 1953, recorded in Volume 388, Page 23, Deed Records, DENTON County,
Texas.
3. Title to the estate or interest in the land is insured as vested in:
CITY OF DENTON
4. The land referred to in this policy is described as follows:
See Exhibit A attached hereto and made a part hereof for all purposes.
TEXAS TITLE COMPANY
Countersigned By:
Aut riz oun ersigna ure
Texas Owner's Policy T-1 (Rev. 1-1-93)Texas Owner's Valid Only If Schedule B
Schedule A And Cover Page Are Attached
LAWYERS TITLE INSURANCE CORPORATION
---------------------
OWNER POLICY OF
TITLE INSURANCE
---------------------
CASE NUMBER DATE OF POLICY NUMBER
POLICY
2001 DE 121504-G (400)/CS 6/10/2003 0121504
EXHIBIT A
BEING all that certain remainder tract, parcel or lot of land out of the
EUGENE PACHALSKI SURVEY A-996 in the City of Denton, DENTON County, Texas
described by deed recorded in Volume 383, Page 187, Deed Records, DENTON
County, Texas and more particularly described as follows:
BEGINNING at a one-half inch iron rod found for the common re-entrant
corner of the tract described by deed recorded in Volume 1796, Page 601
Deed Records, DENTON County, Texas and in the South right of way Iine o
West Prairie Street at the West end of said street;
THENCE with said South right of way line of West Prairie Street, South 88
degrees 11 minutes 20 seconds East, a distance of 239.28 feet to a
five -eights inch iron rod set for a corner, in the Southwest right of way
line of Burlington Northern -Santa Fe Railway Co; from which a TXDOT Brass
Disk set in concrete bears South 88 degrees 11 minutes East, 624.1 feet;
THENCE with the said railroad Southwest rigght of way line, South 21 degrees
56 minutes 03 seconds East, a distance of 427.79 feet to a five -eights inch
iron rod set for corner in the North line of a tract described by deed
recorded in VOlume 1796 Page 601 Deed Records, DENTON County, Texas; from
which a TXDOT Brass Disk set in concrete bears South 88 degrees 16 minutes
East, 489.9 feet;
THENCE leaving the said railroad right of way line and with the said common
line, North 88 de rees 16 minutes 25 seconds West, a distance of 411.99
feet to a one-half inch iron rod found for a corner;
THENCE continuing with the said line, North 01 degrees 52 minutes 39
seconds East, a distance Of 392.19 feet to the PLACE OF BEGINNING and
CONTAINING 2.930 acres of land, more or less as surveyed by John Nall, Jr.
RPLS #1970 during the month of September 2002.
Texas Owner's Policy T-1 (Rev. 1-1-93)Texas Owner's Valid Only If Schedule A B
Exhibit A- Page 1 And Cover Page Are Attacfied
LAWYERS TITLE INSURANCE CORPORATION
---------------------
OWNER POLICY OF
TITLE INSURANCE
---------------------
CASE NUMBER DATE OF POLICY NUMBER
POLICY
2001 DE 121504-G (400)/Cs 6/10/2003 0121504
SCHEDULE B
This policy does not insure against loss or damage (and the Company will
not pay costs, attorney's 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 itemized below (the Company
must either insert specific recording data or delete this exception):
ITEM 1 OF SCHEDULE B 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 survivorship rights, if any, of any
spouse of any insured.
4. Any titles or rights asserted by anyone, including but not limited to,
persons the public, corporations,government or other entities,
a. to tidelands, or lands comprising the shores or beds of navigable or
Aerennial 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 an 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
2003 , and subsequent years; and subsequent taxes and assessments by any
taxing authority for prior years due to change in land usage or ownership,
but not those taxes or assessments for prior years because of an exemption
granted to a previous owner of theroperty under Section 11.13, TEXAS TAX
CODE, or because of improvements not assessed for a previous tax year.
6. The followingq matters and all terms of the documents creating or offering
evidence of he matters (We must insert matters or delete this exception.):
Rights of parties in possession.
7. Terms, provisions and conditions of Lease Agreement by and between CITY OF
DENTON TEXAS and the COUNTY OF DENTON, TEXAS, as Lessor, and TEXAS
NATIONAL GUARD ARMORY BOARD, as Lessee dated January 30, 1953, filed May
4, 1953, recorded in Volume 388, Page �3, Deed Records, DENTON County,
Texas.
8. Easement created in instrument executed by CITY OF DENTON, TEXAS and
COUNTY OF DENTON TEXAS to GTE SOUTHWEST INCORPORATED, dated January 21,
1992, filed Marc 12 1992, recorded in Volume 3178, Page 469, Deed
Records, DENTON County.
9. Rights of tenants in possession, as tenants only, under any unrecorded
( CONT. ON SCH. B, PAGE 2 )
Texas Owner's Policy T-1 (Rev. 1-1-93)Texas Owner's Valid Only If Schedule A
Schedule B And Cover Page Are Attached
LAWYERS TITLE INSURANCE CORPORATION
---------------------
OWNER POLICY OF
TITLE INSURANCE
---------------------
CASE NUMBER DATE OF POLICY NUMBER
POLICY
2001 DE 121504-C (400)/cs 6/10/2003 0121504
SCHEDULE B
rental or lease agreements.
10. Easements, or claims of easements, which are not recorded in the public
records.
Texas Owner's Policy T-1 (Rev. 1-1-93)Texas Owner's Valid Only If Schedule A
Schedule B And Cover Page Are Attached
CONDITIONS AND STIPULATIONS — CONTINUED
(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
(n) to pay or otherwise settle with the insured claimant the loss or damage
provided for under this policy, together with any costs, aftonneys' 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 for in
paragraphs (b)(i) or (n), 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.
7. DETERMINATION, EXTENT OF LIABILITY AND COINSURANCE.
This policy is a contract of indemnity against actual monetary loss or damage
sustained or incurred by the insured claimant who has suffered loss or damage by
reason of matters insured against by this policy and only to the extent herein described.
(a) The liability of the Company under this policy shall not exceed the least of:
(i) the Amount of Insurance stated in Schedule A;
(ii) the difference between the value of the insured estate or interest as
insured and the value of the insured estate or interest subject to the defect, lien or
encumbrance insured against by this policy at the date 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 stated 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 Date of Policy
an improvement is erected on the land which increases the value of the insured estate
or interest by at 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 partial
loss, the Company shall only pay the lass pro rata in the proportion that the amount of
insurance at Date of Policy bears to the total value of the insured estate or interest at
Date of Policy; or
(ii) where a subsequent improvement has been made, as to any partial
loss, the Company shall only pay the loss pro rats in the proportion that 120 percent of
the Amount of Insurance stated in Schedule A bears to the sum 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, in the aggregate, 10 percent of the Amount of
Insurance stated in Schedule A.
(c) The Company will pay only those costs, attorneys' fees and expenses
incurred in accordance with Section 4 of these Conditions and Stipulations.
8. APPORTIONMENT.
If the land described in Schedule A consists of two or more parcels that are not
being used as a single site, and a loss is established affecting one or more of the
parcels but not all, the lass shall be computed and settled on a pro rats basis as it the
amount of insurance under this policy was divided pro rats as to the value on Dale 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 attached to this policy.
9. LIMITATION OF LIABILITY.
(a) If the Company establishes the title, or removes the alleged defect, lien or
encumbrance, or cures the lack of a right of access to or from the land, all as insured, or
takes action in accordance with Section 3 or Section 6, in a reasonably 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 loss or damage caused thereby.
(b) In the event of any litigation, including litigation by the Company or with the
Companys consent, the Company shall have no liability for loss or damage until there
has been a final determination by a court of competent jurisdiction, and disposition of all
appeals therefrom, adverse to the title as insured.
(c) The Company shall not be liable for loss or damage to any insured 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.
11. LIABILITY NONCUMULATIVE.
It is expressly understood that the amount of insurance under this policy shall be
reduced by any amount the Company may pay under any polic insuring a mortgage to
which exception is taken in Schedule B or to which the insured hagreed, assumed. or
taken subject, or which is hereafter executed by an insured and which is a charge or lien
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 case proof of loss or
destruction shall be furnished to the satisfaction of the Company.
(b) When liability and the extent of loss or damage has been definitely fixed in
accordance with these Conditions and Stipulations, the loss 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 and 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 right 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 claim does not fully cover the loss of the insured
claimant, the Company shall be subrogated to these rights and remedies in the
proportion that the Company's payment bears to the whole amount of the loss.
If loss 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, lost to the Company by reason of the impairment by the insured claimant of the
Company's right of subrogation.
(b) The Company's Rights Against Non -Insured Obligors.
The Companys right of subrogation against non-insured obligors 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 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 or the American
Arbitration Association. Arbitrable matters may include, but are not limited to, any
controversy or claim between the Company and the Insured arising out of or relating to
this policy, any service 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, 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' 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.
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
interpreting 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 arises 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, an Assistant Secretary, or validating officer or authorized
signatory of the Company.
16. SEVERABILITY.
In the event any provision of the policy is held invalid or unenforceable under
applicable law, the policy shall 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: Consumer Affairs Department, P.O. Box 27567, Richmond, Virginia
23261-7567.
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 Department of Insurance,
P.O. Box 149091, Austin, TX 78714-9091, Fax No. (512) 475-1771. This notice of
complaint procedure is for information only and does not become a part or
condition of this policy.
B 1178-22
r:
�II�IIIt.IIIt P(l�!t�pi�r�sjll�llg
TEXAS OWNERS
POLICY OF
TITLE INSURANCE
(REV. 04/04/02)
ISSUED BY
LuryersTidejnsmnce @Roration
HOME OFFICE:
101 Gateway Centre Parkway, Gateway One
Richmond, Virginia 23235-5153
A WORD OF THANKS - - -..
As we make your policy apart of our permanent
records, we want to express our appreciation of
this evidence of your faith in Lawyers Title
Insurance Corporation.
There is no recurring premium.
This policy provides valuable title protection and
we suggest you keep it in a safe place where it
will be readily available for future reference.
If you have any questions about the protection
provided by this policy, contact the office that
issued your policy or you may write to:
Consumer Affairs Department
L4atwyers,Tide
Insurance Corporation
A IANDA ME WMPA
P.O. Box 27567
Richmond, Virginia 23261-7567
TOLL FREE NUMBER: 1-800-446-7086