1998-326AN ORDINANCE AUTHORIZING THE CITY MANAGER TO EXECUTE A REAL ESTATE
CONTRACT WITH THE RUTH G KELLUM ESTATE, BILLY H KELLUM, MARCIA L
KELLUM, MICHAEL W KELLUM, BARBARA KELLUM REESE, AND MARGARET MAYS
FOR THE PURCHASE OF APPROXIMATELY 1 380 ACRE TRACT OF LAND KNOWN AS
PARCEL NO 6A, U S HIGHWAY 77, DENTON, DENTON COUNTY, TEXAS FOR THE U S
HIGHWAY WIDENING PROJECT, AUTHORIZING THE EXPENDITURE OF FUNDS
THEREFORE, AND DECLARING AN EFFECTIVE DATE
THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS
SECTION I That the City Manager is hereby authorized to execute a Real Estate Contract
with the Ruth G Kellum Estate, Billy H Kellum, Marcia L Kellum, Michael W Kellum, Barbara
Kellum Reese, and Margaret Mays for the purchase of approximately 1 380 acres of land known as
Parcel No 6A, U S Highway 77, Denton, Denton County, Texas for the U S Highway Wldemng
Project, a copy of wbach is attached hereto and incorporated by reference herein
~ That the City Council hereby authorizes the expenditure of funds in the
manner and amount as specified in the agreement
SECTION III That this ordinance shall become effective immediately upon its passage and
approval
PASSED AND APPROVED this the ~;~"~/~ day of 0~/~0~//~ , 1998
JAC~
ATTEST
JENNIFER WALTERS, CITY SECRETARY
fl
API~OVED AS TO LEGAL FORM
HERBERT L PROUTY, CITY ATTORNEY
REAL ESTATE CONTRACT
STATE OF TEXAS
COUNTY OF DENTON
THIS CONTRACT OF SALE is made by and between Ruth G. Kell~m
Estate, Billy H. Kellum, Marcia L. Kellum, M1chael W. Kellum,
Barbara Kellum Reese and Margaret Mays (hereinafter referred to
as "Seller") and CITY OF DENTON, TEXAS, a home rule municipality,
of Denton, Denton County, Texas, (hereinafter referred to as
"Purchaser"), upon the terms and cond~tlons set forth here~n.
PURCHASE AND SALE
Seller hereby sells and agrees to convey, and Purchaser
hereby purchases and agrees to pay for all that certain tract,
lot or parcel of land described in Exhibit "A" attached with all
rights and appurtenances pertaining to the said property,
including any rlght, title and interest of Seller in and to
adjacent streets, alleys or rights-of-way (all of such real prop-
erty, 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 herelnafter set forth. Seller shall pay all cost
for the removal, installation, construction, relnstallatlon,
reconstruction, labor and materials for any and/or Improvements
located within the property described an Exhibit "A". Any
improvements not removed by January 1, 1999 shall become property
of the City of Denton, Texas.
PURCHASE PRICE
1. Amount of Purchase Price. The purchase price for the
Property shall be the sum of $13,876.80.
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 cons~mmate the
transactions contemplated hereby are subject to the satlsfact~on
of each of the following conditions any of which may be waived in
whole or in part by Purchaser at or prior to the closing.
1. Preliminary Title Report. Within twenty (20) days after
the date hereof, Seller, at Seller's sole cost and expense, shall
have caused the Title Company (hereinafter defined) to issue a
owners policy commitment (the "Commitment") accompanied by copies
of all recorded documents relating to easements, rights-of-way,
etc., affecting the Property. Purchaser shall g~ve Seller
written not~ce on or before the expIration of ten (10) days after
Purchaser receives the Commitment that the condition of t~tle as
set forth in the CommItment is or is not satisfactory. In the
event Purchaser states the condition of t~tle 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
not~ce, th~s Agreement shall thereupon be null and void for all
purposes; otherwise, this condition shall be deemed to be
acceptable and any ob3ection thereto shall be deemed to have been
waived for all purposes.
2. 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 r~ghts-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 w~thin 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 not~ce,
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 not~ce 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.
AEE008F~ PAGE 2
REPRESENTATIONS kND WARRANTIES OF SELLER
Seller hereby represents and warrants to Purchaser as
follows, which representations and warranties shall be deemed
made by Seller to Purchaser also as of the closing date
1. Except for an oral agricultural rental agreement, there
are no parties in possession of any portion of the Property as
tenants at sufferance, trespassers or other parties Seller
warrants that the tenant and/or his livestock will be removed no
later than 30 days from the date of closing.
2 Except for the prior actions of Purchaser, there is no
pending or threatened condemnation or similar proceeding or
assessment or suit, affecting title to the Property, or any part
thereof, nor to the best knowledge and belief of Seller is any
such proceeding or assessment contemplated by any governmental
authority.
3 Seller has complied with all applicable laws, ordinances,
regulatlons, statutes, rules and restrictions relating to the
Property, or any part thereof.
4. To the best of the seller's knowledge, there are no toxic
or hazardous wastes or materials on or within the Property. Such
toxic or hazardous wastes or materials include, but are not
limited to, hazardous materials or wastes as same are defined by
the Resource Conservation and Recovery Act (RCRA), as amended,
and the Comprehensive Environmental Response Compensation and
Liability Act (CERCLA), as amended.
CLOSING
The closing shall be held at the office of Dentex Title
Company on or before November 30, 1998, or at such title company,
time, date, and place as Seller and Purchaser may mutually agree
upon (which date is herein referred to as the "closing date").
CLOSING REQUIREMENTS
1. Seller's Requirements. At the closing Seller shall.
A. Deliver to State of Texas, acting by and through the
Texas Transportation Commission a duly executed and
acknowledged Deed in the form as attached hereto as
Exhibit ~B" conveying good and marketable title to all of
the Property, free and clear of any and all liens,
encumbrances, conditions, easements, assessments, and
restrictions, except for the following:
AEE008FE PAGE 3
1. General real estate taxes for the
year of closing and subsequent years not
yet due and payable;
2. Any exceptions approved by Purchaser
pursuant to Purchaser's Obligations here-
of; and
3. Any exceptions approved by Purchaser
in writing.
B. Deliver to Purchaser a Texas Owner's Policy of Title
Insurance at Purchaser's sole expense, issued by Dentex
Title Company, Denton, Texas, (the "Title Company"), or
such title company as Seller and Purchaser may mutually
agree upon, in Purchaser's favor in the full amount of
the purchase price, insuring fee simple title for the
State of Texas to the Property sub3ect only to those
title exceptions listed in Closing Requirements hereof,
such other exceptions as may be approved in writing by
Purchaser, and the standard printed exceptions contained
in the usual form of Texas Owner's Policy of Title
Insurance, provided, however:
1. The boundary and survey exceptions
shall be deleted if required by Purchaser
and if so required, the costs associated
with same shall be borne by Purchaser;
2. The exception as to restrictive 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
consIderation as referenced in the "Purchase Price" section of
th~s contract at Closing in im~uediately available funds.
AEE008FE PA~E 4
3. Closin9 Costs. Taxes for the current year will be
prorated through the closing date. Rollback taxes , if any, will
be paid by Purchaser.
Ail other costs and expenses of closing in consummating the
sale and purchase of the Property not specifically allocated
herein shall be paid by Purchaser.
REAL ESTATE COMMISSION
All obligations of the Purchaser or Seller for payment of
Brokers fees are contained in separate written agreements.
BREACH BY SELLER
In the event Seller shall fall to fully and timely perform
any of its obligations hereunder or shall fall to consummate the
sale of the Property except Purchaser's default, Purchaser may
either enforce specific performance of this Agreement or
terminate this Agreement by written notice delivered to seller.
BREACH BY PURCHASER
In the event Purchaser should fall 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 speclflc
performance of this Agreement, or terminate this Agreement by
written notice delivered to purchaser.
MISCELLANEOUS
1. Assignment of Agreement. This Agreement may not be
assigned by Purchaser without the express written consent of
Seller.
2. Survival of Covenants. Any of the representations, war-
rantles, 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
mall, postage prepaid, certified mall, return receipt requested,
addressed to Seller or Purchaser, as the case may be, at the
address set forth beneath the signature of the party.
AEE008FE PAGE 5
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-
vis~ons contained in this Agreement shall for any reason be held
to be invalid, illegal, or unenforceable in any respect, said in-
validity, illegality, or unenforceabillty shall not affect any
other provision hereof, and this Agreement shall be construed as
if the invalid, illegal, or ~nenforceable provision had never
been contained herein.
7. Prior Agreements Superseded. This Agreement constitutes
the sole and only agreement of the parties and supersedes any
prior understandings or written or oral agreements between the
parties respecting the within sub]ect matter.
8. Time of Essence. Time is of the essence in th~s
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 Purchaser within ten (10) days
after Purchaser executes this Agreement and delivers same to
Seller, Purchaser shall have the right to terminate this
Agreement upon written notice to Seller.
AEE008FE PAGE 6
13. Condemnation. It is agreed that this is a sale and
purchase of land considered under threat of condemnation. City of
Denton would condemn the property for road purposes if the
parties hereto had not agreed as to the terms of sale.
SELLER: ~ PURCHASER.
Ruth G. Kellum Estate THE CITY OF DENTON,
TEXAS
B H Kellum Individually /'g/- '/- // ~
and as the Executor to the Ruth Clty/Mana(~r
G. Kellum Estate 215 E. McKlnney
Denton, Texas 76201
Marcia L: K~llum
Barbara Kellum Reese
STATE OF TEXAS
COUNTY OF DENTON
T~rument is acknowledged before me, on this /~ day of
· 1998 by Billy H. Kellum Individually and as
Executpr to the Ruth G. Kellum Estate.
Notary ~ubl~c in and for
the State of Texas
AEE008~ PAGE 7
STATE OF TEXAS
COUNTY OF DENTON
Thls! instrument is acknowledged before me, on this /G/~day of
~, 1998 by Marcia L. Kellum.
Notary P6bllc in and for
the State of Texas
STATE OF TEXAS
COI/NTY OF DENTON
This ~nstrument ~s acknowledged before me, on this I~%k-day of
· ~¥c~.~ , 1998 by M~chael W. Kellum.
~,~ Nota~ P~l~c in and for
,~:%~ J D~r15,1~ the State of Texas
STATE OF TEXAS
COUNTY OF DENTON
T~2L~.d~__instrument is acknowledged before me, on this //~day of
, 1998 by Barbara Kellum Reese.
Notary pubilc Yn an(/ for
the State of Texas
STATE OF
CO~TY OF DENTON
Th~ lnstr~ent is acknowledged before me, on th~s /~ day of
~, 1998 by Margaret Mays.
Notary ~l~c ~n and for
the State of Texas
2%EEO08F~ PAGE
STATE OF TEXAS
COUNTY OF DENTON
This instrument is acknowledge~d, b~for,e on this ~ -~ day of
, c .ty
, ~7~- Manager,
of the City of Denton, a municipal corporation, known to me to be
the person and officer whose name is subscribed to the foregoing
instrument and acknowledged to me that the same was the act of
the said C~ty of Denton, Texas, a municipal corporation, that he
was d~ly 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 t~ capacity therein
Notary ~ub'llc-~ and for
the State of T~xas
AEE008FE PAGE 9
EXHIBIT
County ~ Page I of 1
H~ghway U.S, 77
Project L~mita' From I.H. 3B Rev December 2, 1994
To U.S. 380
CSJ 019B-O2-
Account
FIELD NOTES FOR PARCEL 6A
BEING A PARCEL OF LAND SITUATED IN A CALLED 125-ACRE PARCEL OF LAND CONVEYED TO BARBARA
KELLUM, ET. AL, RECORDED IN VOLUME 946, PAGE 263, DEED RECORDS DENTON COUNTY, TEXAS
(DRDCT), AND BEING SITUATED IN THE ALEXANDER WHITE SURVEY, ABSTRACT NO 1406 AND THE NATHAN
WADE SURVEY, ABSTRACT NO. 1407, CITY OF DENTON, DENTON COUNTY, TEXAS, AND BEING MORE
PARTICULARLY DESCRIBED AS FOLLOWS'
COMMENCING for reference at a found brass monument being a point on the north right of way hne of Loop 288
(a variable width right of way);
THENCE N 80° 23' 23" W, along the north right of way line of Loop 288, a distance of 53 04 feet to a set 5/8-
~nch ~ron rod w~th an aluminum cap for the POINT OF BEGINNING, and being a point on the new north right of
wa,/hne of U.S 77,
(1) THENCE N 80° 23' 23" W, along the north nght of way hne of Loop 288, a distance of 122 83
feet to · point In the existing north right of way line of U S 77 from which a found brass
monument bears S 81 o 08' 26" W, a distance of I 99 feet,
(2) THENCE N 58° 13' 55" W, along the south line of said Kellum tract and the existing north r~ght
of way line of U.S. 77, a distance of 1215 65 feet to a fence corner for the southwest corner of
aa~d Kellum tract, sams being the southeast corner of a called 109 30-acre parcel of land
conveyed to George Hopkins, Trustee, recorded in Volume 3003, Page 620, DRDCT, from whmh
a found 1/2-inch iron rod bears S 11 ° 37' 16' W, a d~atance of 1 53 feet,
(3) THENCE N 00° 49' 38" E, along the west line of sa~d Hopkins tract and east hne of ea~d Kellum
tract, a distance of 54.76 feet to a set 5/8-~nch ~ron rod w~th an aluminum ca;) ~n the new north
right of way line of U.S. 77;
(4) THENCE S 68° 12' 52' E, with the new north right of way hne of U S 77, a distance of 759 83
feet to a eat 5/8-Inch ~ron rod with an aluminum cap,
{5) THENCE S 58° 11 ' 36" E, continu,ng w~th the new north r~ght of way hne of U.S 77, a d~etance
of 597.73 feet to the POINT OF BEGINNING and conta~mng 1 380 acres, or 60,111 square feet
of land, more or less
0 617 Ac -Alexander Wade Survey
0 763 Ac -Nathan Wade Survey
c- F
John F Wild~r, R.P L S
Date
T~xas No 4285
EXH~fBIT "B"
Texa~ Depamnent of Tf~n~o~a~on
Form D-I~-I4
P~ge I ~ Roy
DEED
~ STA~ OF ~ }
}
CO~ OF } ~OW ALL MEN BY T~SE PRESENTS:
of the Coun~ of , State of Texas, hereinafter referred to as Grantors, whether
one or more, for and m considerauon of the sum of
Dollars ($ . ) to Grantors
m hand prod by the State of Texas, acting by and through the Texas Transportanun Comnusslon, receipt of
wluch ~s hereby acknowledged, and for winch no lien ~s retained, either expressed or unphed, have tlus
day Sold and by these presents do (]rant, Bargain, Sell and Convey unto the State of Texas all that certain
tract or p.. ~ar~,~l of land in County, Texas, more pamcularly dascnbed m
lub~t "A, ' wluch ~s attached he. to and mcorporated hereto for any and all purposes
SAVE and EXCEPT, HOWEVER, it ~s expressly understood and agreed that Grantors are retaining
Utle to the following unprovements located on the property described m smd Exinb~t "A," to w~t
Grantors covenant and agree to remove the above-described unprovements from said land by tbe
day of ,19.__, subject, however, to such extensions of tune as may be granted
by the State m writing, and fi, for any reason, Grantors furl or refuse to remove same within said penod of
time prescribed, then, without any further considerauon, the title to all or any part of such unprovements
not so removed shall pass to and vest m the State of Texas forever
Grantors reserve all of the ell, gas and sulphur m and under the land hereto conveyed but wmve all nghts
of regress and egress to the surface thereof for the propose of exploring, developing, mmmg or dnll~ug for
same, however, notlung m th~ reservauon shall affect the tltle and rights of the State to take and use ail
other nunerals and materials thereon, thereto and thereunder
Texas Dapnnment of Transportmon
Porrfl D-IS-Ii
Paga 2 of 3
TO ~VE ~D TO HOLD ~ p~ h~m ~scn~d ~d h~ conveyed t~et~r w~ ~ ~d
sm~
fo~ver, md O~tors do ~by brad o~ves,
sl~ to W~t ~d F~v~ ~md ~ ~d 5~dnr ~o s~d ~e5 h~em co.eyed ~to ~e StYe of
Tex~ ~d l~ ~s~ ag~t ev~ ~on who~ h~y c~g or m c~ ~ s~ or ~y p~
~e~of
~ ~ES5 ~REOF, ~ ~t h ~ted on ~ &e day of
,19
ACKNOWLEDGMENT
THE STATE OF TEXAS,
COUNTY OF
BEFORE ME, the undersigned, a Notary Public, on this day personnlly appea~d
, known to me (or proved
to me on the oath of , a c~edtble wlmess,) to be the person(s) whose
name(s) is (al~) subscribed to the fomsomg mstmmsut and aclalowledged to me that he/she/they executed the same for the
OIVEN UNDER MY HAND AND SEAL OP Ol.*t,tCE, th~s day of ,19
Not~uy Pubhc, State of Texas
My Commbmm exphu m ~bo dayof ,19
CORPORATE ACKNOWLEDGMENT
THE STATE OF TE~S,
CO~ OF }
B~O~ ~ ~ un~i~d, a No~ ~bHc, ~ ~ ~y ~no~y ~e~d
of , ~OW~ tO
me to ~ ~ ~on ~d o~ who~ ~e · ~b~ m ~ forgoing ~ent ~ ~l~g~ m me ~ ~ ~e
w~ ~ act 0f ~ s~d
d~y ~ ~ ~o~ ~ ~e ~ ~ ~lu~ of ~ bo~ of ~ of m~ c~on md ~ ~/s~
~d ~ ~e ~
O~ ~ MY ~ ~ S~ OF O~ ~s ~y of ,19
Notary Pnb~, State of Texas
My Commission expues on the day of ,19
Texae Depemnent of Tnm~pomttton
Form D-15~14
Pese3of3 P~v 9/91
After recordfng please return thfs fnstrument to:
CERTIFICATE OF RECORDING
THE STATE OF TEXAS, }
COU~I~ ~OP ~
A3Oltl I (1/93)
rile FOLLOWING COMMITMEN1 .~, 4TLE INSURANCE IS NOT VAUD UNL .,. ,)UR NAME AND THE x / A'~.
POLICY AMOUNT ARE SHOWN IN SCHEDULE A, AND OUR AUTHORIZED REPRESENTATIVE HAS
COUNTERSIGNED BELOW
COMMITMENT FOR TITLE INSURANCE
ISSUED BY
FNo q%/73q
Alamo Title vance
of Texas
We, Alamo Title Insurance of Texas, a Texas corporation, will issue our title ~nsurance policy or policies
(the Policy) to You (the proposed insured) upon payment of the premium and other charges due, and
oompltanoe with the requirements in Schedule B and S~hedule C Our Pohcy will be ~n the form approved
by the Texas Department of Insurance at the date of ~ssuance, and will ~nsure your ~nterest in the land
described in Schedule A The estimated premium for our policy and applicable endorsements ~s shown on
Schedule D There may be additional charges such as recording fees, and expedited dehvery expenses
Th~s Commitment ends ninety (90) days from the effective date, unless the Pohcy ~s ~ssued sooner, or failure
to issue the Policy ~s our fault Our liability and obligations to you are under the express terms of this
Commitment and end when this Commitment expires
ATTEST (~ ALAMO TITLE INSURANCE OF TEXAS
Authonzed Signatory
DENTEX TITLE COMPANY
300 N ELM STE 101
DENTON, TEXAS 76201
CONDITIONS AND STIPULATIONS
1 If you have aotual knowledge of any matter which may affect the title or mortgage covered by this
Commitment, that is not shown in Schedule B, you must notify us (n writing If you do not notify us in
writing, our liability to you is ended or reduced to the extent that your failure to notify us affects our
liability If you do notify us, or we learn of such matter, we may amend Schedule B, but we will not be
relieved of liability already incurred
2 Our liability (s only to you, and others who are included in the definition of Insured in the Policy to be
~ssued Our liability is only for actual loss incurred in your relmnce on this Commitment to comply with
its requirements or to acquire the Interest In the land Our hablllty is limited to the amount shown in
Schedule A of this Commitment and will be subject to the following terms of the Policy
Insuring Provisions, Conditions and Stipulations, and Exclusions
(THIS COMMITMENT IS INVALID UNLESS SCHEDULES A, B, C AND D ARE ATTACHED HERETO )
Commitment for Title,Insurance Effective January 1, 1993
A3215?(1/S3)
Alamo t].e Ln_sumnce
of
TEXA~ TITLE INSURANCE INFORMATION
Title ~nsurence insures you against loss resulting from certain El seguro de titulo le asegura en relec~bn a p~-cliclaa resuitantas
Hake to your title de c~ertos riasgos qce pueden afecter el tifulo de su propisded
The Commitment for Title Insurance is the title insurance El Comprom~so pare Begure de Tltulo es la promeaa de la
cempany's promise to issue the title insurance policy The compa~le aseguradora de tltulca de emitir la pbl~za de seguro
Commitment is a legal document You should review ~t de tltulo El Comprom~o es un documento legal Usted debs
cersfully to ~ompletely understand ~t before your clas~ng date Iserlo cuidadceamente y enterderlo completamante antes de la
techa para tmalizor su transeccibn
Your Commitment for Title Insuranse is a legal contract between you and us The Comm~tmant ,s not an oP~n~on or report of your
title It is a contract to issue you a policy subject to the Commitmant's terms and requirements
Before *asuing a Commitment for Title Insurance (the Comm~trnsnt) or a Title Insurance Policy (the Policy), the Title Insurance
Company (the, Company) determines whether the title is insurable Th~s determination has already been made Part of that
determination Involves the Company's decision to insure the title except for certe~n risks that will not be covered by the Policy Some
of these risks ere listed In Schedule B of the attached Commitment as Exceptions Other nsks am stated in the Policy aa Exclusions
These risks will not be covered by the Policy
Another part of the determination ~nvolves whether the promise to ~nsure m condit*onsd upon certain requirements being met
Schedule C of the Commitment lists these requirements that must be satisfied or the Company w~ll refuse the cover them You may
want to discuss any matters shown on Schedules B.and C of the Commitment w~th an affornsy These matters will affect your title
and your uae of the land
When your Policy is issued, the coverage will be limited by the Policy's Excepbons Exclusions and Conditions, dof~nsd below
EXCEPTIONS are title risks that a Policy generally covers but does not cover ~n a particular ~nstanoe Exceptions are shown
on Schedule S or discussed in Schedule C of the Commitment They can also be added if you do not comply with the
Conditions asctlen of the Commitment When the Policy is issued, all Exceptions w~ll be on Schedule B of the Policy
EXCLLJSIONS am title risks that a Policy generally does not cover Exclusions are conte~nsd in the Policy but not shown
or discussed ~n the Commitment
CONDITIONS are additional provisions that qualify or limit your coverage Conditions include your reaponalbilifisa and those
of thelcompany They are contained tn the Policy but not shown or discussed ~n the Commitment The Policy Conditions
are not the same as the Commitment Conditions
You can get a copy of the policy form approved by the State Board of Insurance by calhng the Title Insurance Company at
~.800.ESS-SS~O or by calling the tiffs insurance agent that issued the Commitment The State Board of Insurance may rewse
the policy form from time to time
You can also get a brochure that explains the Policy from the Texas Department of Insurance by calling *1-800-S6E-~4~S.
Before the Policy is issued, you may request changes in the Policy Some ct the changes to consider am
Requept amendment of the 'area and boundary" exception (schedule B, paragraph 2) To get this amendment, you must
furnish a survey On the Owner Policy, you must pay an additional premium for the amendment If the survey ~s acceptable
to the Company, your policy will Insure you against loss because of discrepancies or conflicts ~n boundary lines,
encroachments or protruaons, or overlapping of improvements The Company may then decxte not to recurs against
specific boundary or survey probisrca by making special exceptions in the Policy
Nlow the Company to add an exception to "rights of parties in possession If you refuse this exception, the Company
or the title insurance agent may ~nspact the property The Company may except to and not insure you against the righte
of spadiflo persona, such se renters, adverse owners or easement holders who occupy the lend The Company may charge
you for the inspactlon
Form- Commitment Info~natlan Effective danuary 1 lg93
CO~f~TF~NT FOR TITLE INSURANCE
SCHEDULE A
EFFECTIVE DATE~ September 09, 1997 CF NO..' 97-~734S
CO~dITMENT NO.g , iss~d September 23, 1997 a~ 8gO0 a.~
( If applicable)
1. POLICX OB POLICIES TO BE ISSUED~
(~ot applicable for i~oved o~-to-four fa~ly residential real estate)
Policy ~unt~ TO BE DETERMINED
P~oposed I~ure4: CIT~ O~ DE~ON
(b) O~E~ POLIC~ O~ TI~E INS~CE -
O~-TO-~O~ F~LY ~SIDENCES (Form T-IR)
Policy
P~oposed
(c) ~RT~AGEE POLICY O~ ~TLE INS~CE (Form T-2)
Policy ~un~
Proposed I~ured~
Proposed Borro~r:
(d.) ~RTG~EE POLIC~ BI~ER O~ INTERI~ CONSTRUCTION LO~ (~orm T-13)
BiMer ~un~
Proposed I~ured:
Proposed Borro~r~
( e. ) OT~
Policy ~unt~
Proposed I~ured~
2. The interest in t~ land covered by t~s Content is: Fee Simple
3. Record ~itle ~o ~ land on
RUTH ~. ~LL~ a~ ~G~T ~YS and BILLY H. ~LL~ and ~CIA L ~LL~
and ~C~L ~. ~LL~ and B~ ~LL~
Legal description o[ the la~:
~1 t~2 certain tract o[ land being sit.ted in the
1406 and ~he N. ~ade Survey, Abstract
par~ic~arly described in Ex. bit "A" a~ached hereto and ~de a par~ hareo[
Dentex Title Company
Authorized Countersignature
FOR~ Commitment-Schedule A Effective January, 1 1993
EXHIBIT "A"
County J~ Page 1 of I
Highway U.S. 77
Project Umito: From I.H. 36 Rev December 2. 1994
To U.S. 380
CS J: ~
Account'
FIELD NOTES FOR PARCEL SA
BEING A PARCEL OF LAND SITUATED IN A CALLED 125-ACRE PARCEL OF LAND CONVEYED TO BARBARA
KELLUM, ET. AL., RECORDED IN VOLUME 946, PAGE 283, DEED RECORDS DENTON COUNTY, TEXAS
(DRDCT), AND BEING SITUATED IN THE ALEXANDER WHITE SURVEY, ABSTRACT NO. 1408 AND THE NATHAN
WADE SURVEY, ABSTRACT NO. 1407, CITY OF DENTON, DENTON COUNTY, TEXAS, AND BEING MORE
PARTICULARLY DESCRIBED AS FOLLOWS:
COMMENCING for reference at a found brace monument being a point on the north right of way line of Loop 288
(a variable width right of wey}=
THENCE N 80° 23' 23' W, along the north right of way line of Loop 288, a distance of 53.04 feet to a set 5~8-
inch iron rod with an aluminum cap for the POINT OF BEGINNING, and being a point on the new north right of
way line of U~So 77;
(1) THENCE N 80° 23' 23' W, along the north right of way line of Loop 288, a distance of 122 83
feet to a point In the axletlng north right of way line of U.S. 77 from which a found brass
monument bears 8 81 o 06' 26" W, a distance of 1.99 feet;
(2) THENCE N 88° 13' BB" W, along the south line of said Kellum tract and the existing north right
of way line of U.S. 77, a dletance of 1215.85 feet to a fence corner for the southwest comer of
said Kellum tract, same being the southeast comer of a called 109 30-acre pemel of lend
conveyed to George Hopkins, Trustee, recorded In Volume 3003, Page 620, DRDCT, from which
a found ll2-1nch Iron rod bears $11 o 37' 16' W, a distance of 1 53 feet;
(3) THENCE N 00° 49' 38" E, along the ~est line of said Hopkins tract and a~ line of said Kellum
tract, a distance of 54.76 feet to a set 518-inch iron rod with an aluminum cap in the new north
right of way line of U.S. 77;
{4) THENCE S 58o 12' 52" E, with the new north right of way line of U S 77, a distance of 759 83
feet to a set ElS-inch iron rod with an aluminum cap;
(B) THENCE S 58° 11' 36' E, continuing with the new north right of way line of U.S. 77, a distance
of 597.73 feet to the POINT OF BEGINNING end contein,ng 1.380 acres, or 60,111 square feet
of land, more or less
0.617 Ac.-Ale~,ander Wade Survey
0.763 Ac.-Nethan Wade Survey
GOi"~/ITL'~NT FOR TITLE INSURANCE
SCHEDULE B
EXCEPTIONS PROM COVERAGE
G.P. No.: 97-1734S
In addition to the Exclusions and Conditions and Stipulations, your Policy will not
cover loss, costs, attorneys' fees~ end expenses resulting from~
1. The following restrictive covenants of record itemized below (We must either
insert specific recordim~ data or delete this exception)*
This exception is hereby deleted in its entirety.
2. Any discrepancies, conflicts~ or shortages in area or boundary lines, or any
encroachments or protrusions, or any overlapping of improvements
3. Homestead or community property or suvivorship rights, if any, of any spouse of any
insured. (Applies to the Owner Policy only.)
4. Any titles or rights asserted by anyone~ including~ but not limited to, persons, the
public, corporations, governments or other entities,
a. to tidelands, or lands comprising the shores or beds of navigable or
perennial rivers and streams, lakes, bays, gulfs or oceans, or
b. to lands beyond the line of the harbor or bulkhead lines as established
or changed by any government, or
c. to filled-in-lands, or artificial islands, or
d. to statutory water rights, including riparian rights, or
e. to the area extending from the line of mean low tide to the line of vegetation,
or the rights of access to that area or easement along and across that area
(Applies to the Owner Policy only. )
5. Standby fees, taxes and assessments by any taxing authority for the year 1997 and
subsequent years, and subsequent taxes and assessments by any taxing authority for
prior years due to change in land usage or ownership
6. The terms and conditions of the documents creating your interest in the land
7. Materials furnished or labor performed in connection with planned construction
before signing and delivering the lien document described in Schedule A, if the land
is part of the homestead of the owner (Applies to the Mortgagee Title Policy
Binder on Interim Construction Loan only, and may be deleted if satisfactory
evidence is furnished to us before a binder is issued. )
8. Liens and leases that affect the title to the land, but that are subordinate to the
lien of the insured mortgage (Applies to the Mortgagee Policy only )
9. The following matters and all terms of the documents creating or offering evidence
of the matters (We must insert matters or delete this exception.).'
a. LIEN TO BE CREATED IN POEM ACCEPTABLE TO THIS COMPANY.
b. This policy insures real estate only and does not insure title to any
removables which may be situated thereon.
c. Any matters that might arise as a result of a current survey of the
property.
d. Rights of parties in possession. (On STP only)
e. Any visible and apparent easements over and across said property, the
existence of which does not appear of record.
FORI~ Commitment-Schedule B Effective January 1, 1993
~INUATION OF SCHEDULE B
G.F. No.= 97-1734S
f. Any part or portion of the herein described property, lying ~rithin the
boundaries of a publio or private road or right o£ way.
Any outstandinS oil, gas and other mineral interest o~ned by others of
record in the office of the County Clerk of Denton County, Texas, including, but
not limited to the followins~
1) Lease between Ruth Kellum et al and Derrick Petroleum Inc recorded on Oct
1, 1981 in Vol,,-~ 1104, Page 584, Deed Records of Denton County, Texas.
2) Lease between Billy H. Kellum et al and lg. R. Harehell recorded on April
1983 in Volume 1616, Page 178, Real Property Records of Denton County, Texas.
*Title to eaid mineral leases/reservations have not been researched subsequent
to date of document.
h. Easement granted to BRAZOS RIVER TRANSlilSSION ELECTRIC COOPERATIVE, INC
from &W. C00DWIN ET UX, by instrument filed DEC. 31, 1946 and recorded in
Volume 332, Page 301, DEED Records, Denton County, Texas
i. Easement Erantad to DENTON COUNTY ELECTRIC COOPERATIVE, INC from A.
GOODWIN ET UX, by instrument filed AUG. 15, 1947 and recorded in Volume 339,
Page 123, DEED Records~ Denton County~ Texas.
J. Easement granted to TEXAS MUNICIPAL POWER AGENCY from RUTH G KELLUt4 ET AL,
by instrument filed JUNE 3, 1986 and recorded in Volume 1900, Page 300, REAL
PROPERTY Records, Denton County, Texas.
POR~ Com,dtment-Schedule B Effective January 1, 1993
COi~IITI~ENT FOR TITLE INSURANCE
SCHEDULE C
G F. No.: 97-1736S
Your Policy will not cover loss, costs, attorney's fees, and expenses resulting from the
following requirements that will appear as Exceptions in Schedule B of the Policy,
unless you dispose of these matters to our satisfaction, before the date the Policy is
issued:
1. Documents steering your title or interest must be approved by us and must be
signed, notarized and filed for record.
2. Satisfactory evidence must he provided that:
no person occupying the land claims any interest in that land against the
persons named in paragraph 3 of Schedule A,
all standby fees, taxes, assessments and charges against the property have been
paid,
all improvements or repairs to the property are completed and accepted by
owner, and that all contractors, subcontractors, laborers and suppliers have
been fully paid, and that no mechanic' s, laborer's or materialman' s liens have
attached to the property,
there is legal right of access to and from the land,
(on a Mortgagee Policy only) restrictions have not been and will not be
violated that affect the validity and priority of the insured mortgage
3. You must pay the seller or borrower the agreed amount for your property or interest
4. Any defect, lien or othermatter that may affect title to the land or interest
insured, that arises or is filed after the effective date of this Commitmsn~
5. Upon r~ceipt of a survey acceptable to Company and upon payment of all the
expenses in connection with the survey and the applicable premium, if any, ;tern 2 of
Schedule B will be deleted except for "shortages in area," subject to any additional
exceptions revealed by the survey.
6. Upon payment of the applicable premium, Paragraph 3 of Schedule g of any
Mortgagee Title Policy or Mortgagee Title Policy Binder on Interim Construction Loan
will he amended to read as follows; "Standby fees, taxes and assessments by any
taxing authority for the year 1997 and subsequent years."
7. Upon payment of Cha applicable premium, Paragraph 3 of Schedule g of any
Mortgagee Title Policy or Mortgagee Title Policy Binder on Interim Construction Loan
will be amended to include the following language: "Company insures that standby
fees, taxes and assessments by any taxing authority for the year 1997 are not yes
due and payable."
8. Note to all buyers, sellers, borrowers, lenders and all parties having an
interest in the transaction covered by this commitment. The following constitutes a
major change in the procedures and requirements for disbursement of funds pursuant
to this transaction
The State Board of Insurance has adopted Article 9.39A disbursement from trust fund
accounts and Procedural Rule P-27 which requires that sufficient "good funds" be
received and deposited to the trust fund account before diebursment. "Good funds"
is defined in part as; 1. cash or wire transfers~ 2. certified checks, cashier's
checks and teller's checksi 3. unterrified funds in amounts less than $1500.00,
including personal checks, travelers checks, money orders, and negotiable orders of
FOE~ Commitment-Schedule C Effective January 1, 1993
~INUATION OF SCHEDULE C
G.F. No.. 97-1734S
withdrawal; provided multiple items shall not be used to avoid the $1500 00
limitation~ and 4. uncertified funds in amounts of $1500. O0 or more, drafts and any
other items when collected by the financial institution.
9. Obtain and return to title company a signed statement made by purchaser/borrower
acknowledBing receipt of title com.~tmsnt prior to closing, and acceptance of tbs
exceptions shown under Schedule B thereof.
10. If the property is occupied by other than owner, obtain tenant's disclaimer or
waiver[ otherwise= exception will be taken to rights of parties in possession.
11. Obtain Seller's Affidavit as to no debts, liens, etc. on said property for
recent improvements, if any, or under UCC filing.
12. Additional ClosinS gequiremsnts (3 page ford must be signed and initialed by
all parties in this tranaactio~
13. Bankruptciesl
BARB~A I~ REECE $S#N[A (PAILIS) ~1841P 09~18~87
BARBARA REESE SS#452-64-0772 (HOUSTON) #42002 02127!97
" SS#457-72-i 660 " " "
REQUIREMENTs Affidavit with proper identification to affirm that BARBARA I~ REESE,
is not the sams person as any of those who are parties to any of the above mentioned
bankruptcies Oft require evidence that they have authority to enter into the
t tans action
14. Bankruptcies~
LAURA L. KELLUI~ SS#455-05-5303 (DALLAS) #37307D 10/31/90
REQUIRE~ENTI Affidavit with proper identification to affirm that LAURA KELLU~ is
not the sams person as any of those who are parties to any of the above mentioned
bankruptcies Oft require evidence that they have authority to enter into the
transaction
15. If RUTH G. KELLU~ MARGARET MAYS, BILLY H. KELLU~ ~RCIA L. KELLU~ [f[CHAEL W.
KELLU~ and[or BARBARA KELLU~ is married then spouse(s) should Join in conveyance
16. P. equire proper doc--~ntation showing who has authority to execute documents on
behalf of CITY OF DENTON.
FOEi~ Co-.~msnt-Schedule C Effective January 1, 1993
Alamo Title Insurance of Texas
COMMITMENT FOR TITLE INSURANCE GF NO 97-1734S
SCHEOULE D
Pursuant to the requirements of Rule P-21, Basic Manual of Rules~ Rates and Forms for the
writing of Title Insurance tn the State of Texas, the following disclosures are made
1 The following individuals ere directors and/or officers, as ~ndlcated, of Alemo T~tle
Insurance of Texas.
Alex H Halff, Chairman of the Board; Oon H. Still. President, Ruth W
McCracken. Senior Vice P~estdent; Richard B. Squllle, Vice President,
Pat L. Wilson, Secretary Treasurer
DIRECTORS: Jack Biegler, Alex H. Halff, Ruth W. McCracken, Traws N
Moursand, Robert T. Rork, Oon H. St~11, E Don Walker, Jr , James N
Wilson and Pat L. Wilson
Alex N. Halff, Howard A. Halff, the Estate of Thomas A Halff, and
Mortgage Loan & Agency Co. are owners of more than 10% of the stock of
Alam6 Title Insurence of Texas. Traws M. Moursund and Alfred Moursund
ere each an owner of more than 10% of the stock of Mortgage Loan &
Agency ¢o.
2 The following disclosures are made by the T~tle Insurance Agent ~ssu~ng this commitment.
OWNERS of I00% of Dentex Title Company: Adams Title Company
OIRECTORS of Dentex Title Company: Phil Adams, Ruth Adams & Rebecca
Arnold-Moore
OFFICERS of Dentex Title Company. Rebecca Arnold-Moore, Pres~dent; Jack Hanna, V~ce
Prestdent~ Stacte Bourland, Secretary/Treasurer
Phil Adams and Ruth Adams own 100~ of the stock of Adams Title Company
3 You are entitled to receive advance disclosure of settlement charges tn connection w~th
the proposed transaction to which this commitment relates. Upon your request, such
disclosure w~11 be meae to you. Additionally, the name o~ any person, firm or corporation
receiving any sum from the settlement of this transaction w~ll be d~sclosed on the closing
or settlement statement.
You are further advised that the estimated title premium* ~s
Owner Policy To Be Determined
Mortgage Policy
Endorsement Charges Total ..:~.~.~eterm:ned
Of this total amount: 17.75 % will be pa~d to the policy ~ssu~ng T~tle
Insurance Company~ o~ ~ · will be retained by the T~tle Insurance Agency. and
the remainder of the eszqmazeo premium will be paid to other parties as follows
AMOUNT TO WHOM FOR SERVICES
· The estimated aremium is based upon information furnished to us as the date of thl, s
Commitment for Title Insurance. Final determination of the amount of premium will be maoe
at closing in accordance with the Rules and Regulations adopted by the State Board of
Insurance.
A32163 (11193)
Alamo Title Insurance
of Texas
GF No
(Optional)
DELETION OF ARBITRATION PROVISION
(Not apphcable to the Texas Res~dentml Owner Pohcy)
ARBITRATION ~s a common form of alternabve d~spute resolutmn It can be a quicker and cheaper means to
settle a d~spute with your T~tle Insurance Company However, if you agree to arbitrate, you g~ve up your right to
take the T~tle Company to court and your rights to d~scovery of ewdence may be hm~ted m the arbitration
process In addition, you cannot usually appeal an arbitrator's award
Your policy contains an arbitration provision (shown below) It allows you or the Comoanv to reoulre arbitration
If the amount of Insurance Is $1,000,000 or leas If you want to retain your right to sue the Company In case of a
dispute over a claim, you must request deletion of the arbitration provision before the policy la Issued You can
do this by signing this form and returning It to the Company at or before the closing of your real estate trans-
action or by writing to the Company
The Arbitration provision in the Pohcy ~s as follows
"Unless proh;b~ted by applicable law or unless thru arb~trahon section ~s deleted by specific prows~on
m Schedule B of th~s policy, e~ther the Company or the Insured may demand arbitration pursuant to
the T;tle Insurance Arbitration Rules of the American Arbitration Association Arbitrable matters may
include, but are not hmlted to, any controversy or claim between the Company and the Insured arm-
~ng out of or relabng to th~s Policy, and serv;ce of the Company ~n connection with ~ts issuance or the
breach of a pohcy prows~on or other obligation All arbitrable matters when the Amount of Insurance
~s $1,000,000 or less SHALL BE arbitrated at the request of rather the Company or the Insured, unless
the insured ~s an md~wdual person (as d~stmguished from a corporatmn, trust, partnership, associa-
tion or other legal entity) All arbitrable matters when the Amount of Insurance ~s ~n excess of
$1,000,000 shall be arbitrated only when agreed to by both the Company and the Insured Arb~trahon
pursuant to this Policy and under the Rules ~n effect on the date the demand for arb~trahon is made
or, at the option of the Insured, the rules ~n effect at the Date of Pohcy shall be b~nding upon the
partms The award may include attorney's fees only ~f the laws of the state in which the land ~s located
permit a court to award attorneys' fees to a prevalhng party Judgment upon the award rendered by
the Arbitrator(s) may be entered ~n any court hawng junsdlct;on thereof
The law of the situs of the land shall apply to an arbltratmn under the Title Insurance Arbitration
Rules
A copy of the Rules may be obtained from the Company upon request"
I request deletion of the Arbitration prows~on
SIGNATURE DATE