1998-327AN ORDINANCE AUTHORIZING THE CITY MANAGER TO EXECUTE A REAL ESTATE
CONTRACT WITH THE RUTH G KELLUM ESTATE, BILLY H KELLUM, MARCIA L
KELLUM, MICHAEL W KELLUM, BARBARA KELLUM REESE, AND MARGARET MAYS
FOR THE PURCHASE OF APPROXIMATELY 0 514 ACRE TRACT OF LAND KNOWN AS
PARCEL NO 6A(E), U S HIGHWAY 77, DENTON, DENTON COUNTY, TEXAS FOR THE
U S HIGHWAY WIDENING PROJECT, AUTHORIZING THE EXPENDITURE OF FUNDS
THEREFORE, AND DECLARING AN EFFECTIVE DATE
THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS
SI~CTION I That the C~ty Manager is hereby authorized to execute a Real Estate Contract
w~th the Ruth G Kellum Estate, Billy H Kellum, Marcia L Kellum, Michael W Kellum, Barbara
Kellum Reese, and Margaret Mays for the purchase of approximately 0 514 acres of land known as
Parcel No 6A(E), U S Highway 77, Denton, Denton County, Texas for the U S H~ghway
W~demng ProJect, a copy of wbach is attached hereto and ~ncorporated by reference here~n
SECTION II That the C~ty Council hereby authorizes the expenditure of funds m the
manner and amount as specified in the agreement
SECTION III That tbas orthnance shall become effective lmmedmtely upon ~ts passage and
approval
PASSEDAND APPROVED thls the ~p¢~ dayof 0~0~t~/~' ,1998
JAC~
ATTEST
JENNIFER WALTERS, CITY SECRETARY
APP~'~Y6E; ASr
TO LEGAL FO~
HE~ERT L PROUTY, CITY ATTO~Y
P~AL ESTATE CONTRA~T
STATE OF TEXAS
COUNTY OF DENTON
THIS CONTRACT OF SALE is made by and between Ruth G. Kellum
Estate, Billy H. Kellum, Marcia L Kellum, Michael W. Kellum,
Barbara Kellum Reese and Margaret Mays (hereinafter referred to
as "Seller") and CITY OF DENTON, TEXAS, a home rule municipality,
of Denton, Denton County, Texas, (hereinafter referred to as
"Purchaser"), upon the terms and conditions set forth herein.
PURCHASE AND SALE
Seller hereby sells and agrees to convey, and Purchaser
hereby purchases and agrees to pay for all that certain tract,
lot or parcel of land described in Exhibit "A" attached with all
rights and appurtenances pertaining to the said property,
Including any right, title and interest of Seller in and to
adjacent streets, alleys or rights-of-way (all of such real
property, rights, and appurtenances being hereinafter referred to
as the "Property"), together with any improvements, fixtures, and
personal property situated on and attached to the Property, for
the consideration and upon and sub3ect to the terms, provisions,
and conditions hereinafter 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 in Exhibit "A". Any
improvements not removed by January 1, 1999 shall become property
of the City of Denton, Texas.
PURCHASE PRICE
1 Amount of Purchase Price. The purchase price for the
Property shall be the sum of $1928.00
2 Payment of Purchase Price The full amount of the
Purchase Price shall be payable in cash at the closing
PURCHASER'S OBLIGATIONS
The obligations of Purchaser hereunder to consummate the
transactions contemplated hereby are subject to the satisfaction
of each of the following conditions any of which may be waived in
whole or in part by Purchaser at or prior to the closing.
t. 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, r~ghts-of-way,
etc., affecting the Property. Purchaser shall give Seller
written not~ce 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
unable to do so within ten (10) days after receipt of written
notice, this Agreement shall thereupon be null and void for all
purposes, otherwise, this condition shall be deemed to be
acceptable and any objection thereto shall be deemed to have been
waived for all purposes.
2. Survey. Purchaser may, at Purchaser's sole cost and
expense~ obtain a current survey of the Property, prepared by a
duly licensed Texas land surveyor acceptable to Purchaser. The
survey shall be staked on the ground, and shall show the location
of all improvements, highways, streets, roads, railroads, rivers,
creeks, or other water courses, fences, easements, and rights-of-
way on or adjacent to the Property, if any, and shall contain the
surveyor's certification that there are no encroachments on the
Property and shall set forth the number of total acres comprising
the Property, together with a metes and bounds description
thereof.
Purchaser will have ten (10) days after receipt of the survey
to review and approve the survey. In the event the survey
unacceptable, then Purchaser shall w~thln the ten (10) day
period, give Seller written not~ce of this fact. Seller shall,
at Seller's option, promptly undertake to eliminate or modify the
unacceptable portions of the survey to the reasonable
satisfaction of Purchaser. In the event Seller is unable to do
so within ten (10) days after receipt of written notice,
Purchaser may terminate this Agreement, and the Agreement shall
thereupon be null and void for all purposes and the Escrow
Deposit shall be returned by the Title Company to Purchaser.
Purchaser's failure to give Seller this written not~ce shall be
deemed to be Purchaser's acceptance of the survey.
3. Seller's Compliance. Seller shall have performed,
observed, and complied with all of the covenants, agreements, and
conditions required by this Agreement to be performed, observed,
and complied with by Seller prior to or as of the closing.
AEE008FE PAGE 2
REPRESENTATIONS AND WARRANTIES OF SELLER
Seller hereby represents and warrants to Purchaser as
follows, which representations and warranties shall be deemed
made by Seller to Purchaser also as of the closing date
1. Except for an oral agricultural rental agreement, there
are no parties in possession of any portion of the Property as
tenants at sufferance, trespassers or other parties. Seller
warrants that the tenant and/or his livestock will be removed no
later than 30 days from the date of closing.
2 Except for the prior actions of Purchaser, there is no
pending or threatened condenunatlon or similar proceeding or
assessment or suit, affecting title to the Property, or any part
thereof, nor to the best knowledge and belief of Seller is any
such proceeding or assessment contemplated by any governmental
authority.
3. Seller has complied with all applicable laws, ordinances,
regulations, statutes, rules and restrictions relating to the
Property, or any part thereof.
4. To the best of the seller's knowledge, there are no toxic
or hazardous wastes or materIals on or within the Property. Such
toxic or hazardous wastes or materials include, but are not
limited to, hazardous materials or wastes as same are defined by
the Resource Conservation and Recovery Act (RCRA), as amended,
and the Comprehensive Environmental Response Compensation and
Liability Act (CERCLA), as amended.
CLOSING
The closing shall be held at the office of Dentex Title
Company on or before November 30, 1998, or at such title company,
time, date, and place as Seller and Purchaser may mutually agree
upon (which date is herein referred to as the "closing date").
CLOSING REQUIREMENTS
1 Seller's Requirements. At the closing Seller shall
A. Deliver to State of Texas, acting by and through the
Texas Transportation Co~lsslon a duly executed and
acknowledged Drainage Easement Document in the form as
attached hereto as Exhibit ~B" conveying good and
marketable title to all of the Property, free and clear
of any and all liens, encumbrances, conditions,
AEE008FE PAGE 3
easements, assessments, and restrictions, except for the
following'
1. General real estate taxes for the
year of closing and subsequent years not
yet due and payable,
2. Any exceptions approved by Purchaser
pursuant to Purchaser's Obligations
hereof; and
3. Any exceptions approved by Purchaser
in writing.
B. Deliver to Purchaser a Texas Owner's Policy of Title
Insurance at Purchaser's sole expense, issued by Dentex
Title Company, Denton, Texas, (the "Title Company"), or
such title company as Seller and Purchaser may mutually
agree upon, in Purchaser's favor in the full amount of
the purchase price, insuring fee simple title for the
State of Texas to the Property subject only to those
title exceptions listed in Closing Requirements hereof,
such other exceptions as may be approved in writing by
Purchaser, and the standard printed exceptions contained
in the usual form of Texas Owner's Policy of Title
Insurance, provided, however
1. The boundary and survey exceptions
shall be deleted if required by Purchaser
and if so required, the costs associated
with same shall be borne by Purchaser;
2. The exception as to restrictive
covenants shall be endorsed "None of
Record",
3. The exception for taxes shall be
limited to the year of closing and shall
be endorsed "Not Yet Due and Payable";
and
4. The exception as to liens encumbering the
Property shall be endorsed "None of Record".
C. Deliver to Purchaser possession of the Property on
the day of closing.
AEE008FE PAGE 4
2. Purchaser's Requarements. Purchaser shall pay the
consaderataon as referenced an the "Purchase Prace"
section of this contract at Closing an ammedaately
avaalable funds.
3. Closing Costs. Taxes for the current year will be
prorated through the closang date. Rollback taxes , af any, wall
be paad by Purchaser.
All other costs and expenses of closing an consummatang the
sale and purchase of the Property not specifically allocated
herean shall be paid by Purchaser.
REAL ESTATE COMMISSION
All obllgataons of the Purchaser or Seller for payment of
Brokers fees are contained an separate wratten agreements.
BREACH BY SELLER
In the event Seller shall faal to fully and timely perform
any of ats oblagataons hereunder or shall fall to consu/~mate the
sale of the Property except Purchaser's default, Purchaser may
either enforce specaflc performance of this Agreement or
termanate thas Agreement by written notice delivered to seller.
BREACH BY PURCHASER
In the event Purchaser should fall to consummate the purchase
of the Property, the condataons to Purchaser's obllgataons set
forth an PURCHASER'S OBLIGATIONS having been satisfied and
Purchaser being in default Seller may either enforce specaflc
performance of thas Agreement, or termInate th~s Agreement by
written notice delivered to purchaser.
MISCELLANEOUS
1. Assagnment of Agreement. This Agreement may not be
assagned by Purchaser wathout the express written consent of
Seller.
2. Survaval of Covenants. Any of the representataons,
warrantaes, covenants, and agreements of the parties, as well as
any rights and benefits of the parties, pertaining to a period of
time following the closang of the transactaons contemplated
hereby shall survive the closang and shall not be merged therean
AEE008FE PAGE 5
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.
4. Texas Law to Apply. This Agreement shall be construed
under and in accordance with the laws of the State of Texas, and
all obligations of the parties created hereunder are performable
in Denton County, Texas.
5. Parties Bound. This Agreement shall be binding upon and
inure to the benefit of the parties and their respective heirs,
executors, administrators, legal representatives, successors and
assigns where permitted by this Agreement.
6. Legal Construction. In case any one or more of the
provisions contained in this Agreement shall for any reason be
held to be invalid, illegal, or unenforceable ~n any respect,
said invalidity, illegality, or unenforceab~llty 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 th~s Agreement shall
be held and construed to include any other gender, and words in
the singular n~mber 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.
AEE008FE PAGE 6
12. Time Limit. In the event a fully executed copy of this
Agreement has not been returned to Purchaser within ten (10) days
after Purchaser executes this Agreement and delivers same to
Seller, Purchaser shall have the right to terminate this
Agreement upon written notice to Seller.
13. Condenunatlon. It is agreed that this is a sale and
purchase of land considered under threat of condemnation. City of
Denton would condem~n the property for road purposes if the
parties hereto had not agreed as to the terms of sale.
Ruth G. Kellum Estate ~ THE CITY OF DENTON,
TEXAS
B . Kellum Individually
and as the Executor to the Ruth Clt~ Man~er
G. Kellum Estate 215 E. McKlnney
Denton, Texas 76201
Marcia L. ~ellum
Michael W. Kellum
Barbara Kellua, Reese
ga/et'Mays
AEE008FE PAGE 7
STATE OF TEXAS
COUNTY OF DENTON
Thlsllnstrument is acknowledged before me, on this /~ day of
~c , 1998 by Billy H. Kellum individually and as
Executor to the Ruth G. Kellum Estate.
Notary Phbllc in and for
the State of Texas
STATE OF TEXAS
COUNTY OF DENTON
Th~ ln~t__r, hTment is acknowledged before me, on th~s /~ day of
~, 1998 by Marcia L. Kellum.
Notary Public in and for
the State of Texas
STATE OF TEX~
COUNTY OF DENTON
This instrument is acknowledged before me, on this ~¥~-day of
~t~ , 1998 by Michael W. Kellum.
tl"~'~ TOWALMORR'8 II
~I~IONBPIflES I~ Not~y P~llC in and for
~ ~ ~1~.1~ the State of Texas
STATE OF TEXAS
COUNTY OF DENTON
Th~$ instrument is acknowledged before me, on thls/~day of
~f~4~//~'~4.-- , 1998 by Barbara KellumReese
No{ary Public in/and for
the State
~d~E008 FE PAGE 8
STATE OF TEXAS
COUNTY OF DENTON
Thl~ instrument is acknowledged before me, on this /~ day of
~~ , 1998 by Margaret Mays.
Notary l:~:>llc in and for
the State of Texas
STATE O~ TEX/~
COUNTY OF DENTON
This Instrument is acknowled~g~ ~efore m~, on this ~ day of
~2~~- , 1998 by ~/~/ ~~ , C~ty Manager,
of th~ ~mty of Denton, a m~mcmpal corporatmon, kno~ to me to be
the person and officer whose n~e ms s~scrmbed to the foregoing
mnstr~ent and acknowledged to me that the s~e was the act of
the said City of Denton, Texas, a municipal corporatmon, that he
was duly authorized to perfo~ the s~e by approprmate ordmnance
of the City Councxl of the Cmty of Denton and that he executed
the s~e as the act of the said C~ty for purposes and
consideration there~n expressed, and ~n the~capacmty therein
stated. ~ ~~
Not~y P~lC ~an~ for
the State of T~xas
~.,~.~ Nomu Pu~llo, Sram of ~xas
AEE008FE PAGE 9
EXHIBIT
County Denton Page I of 1
Highway I.I,S. 77
ProJeCt Limits: From I.H. 35 Rev. June 30, 1994
To U.S. 38O
CSJ 0195-02-
Account
FIELD NOTES FOR PARCEL 6A(E!
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. 1408, CITY OF DENTON, DENTON
COUNTY, TEXAS, AND BEING MORE PARTICULARLY DESCRIBED AS FOLLOWS
COMMENCING for reference at s found brass monument being a point in the north right of way line of Loop 288
(a variable width right of way),
THENCE N 80* 23' 23' W, along the north right of way hne of Loop 288, a distance of 53.04 feet to a sat 5/8-
inch iron rod with an aluminum cap, being s point on the new north right of way line of U S 77,
THENCE N 58· 11' 36" W, along the new north right of way llne of U.S 77, a distance of 597 73 feet to a set
5/8-tach iron rod with an aluminum cap;
THENCE N 58° 12' 52' W, continuing along the new north right of way line of U S 77, e distance of 175.89
feet to a set 5/8-inch iron rod wIth an aluminum cai) being the POINT OF BEGINNING,
(1) THENCE N 58° 12' 52' W, with the new north right of way line of U.S 77, a distance of 80 00
feet to a set 5/8-inch iron rod with an aluminum cap,
(2) THENCE N 31 o 47' 08' E, across sa~d Ksllum tract, a distance of 280.00 feet to a set 5/8-~nch
iron rod with an aluminum cap,
(3) THENCE S 58° 12' 52' E, a distance of 80 00 feet to a set 5/8-inch iron rod with an aluminum
cap,
(4) THENCE S 31 o 47' 08' W, a distance of 280 00 feet to the POINT OF BEGINNING and containing
0.514 acres, or 22,400 square feet of land, more or less
John F Wilder, FI P L S ~ Ds~e
Texas No 4285
Texas Depa~mteat o~ Transporta~,on EXHI B I T "B" '
paSe 1 of~ R~v
Drainage Easement for Highway Purposes
THE STATE OF TEXAS }
COUNTY OF ] KNOW ALL MEN BY THESE PRESENTS.
That,
oftbe County of , State of Texas, heremafter referred to as Grantors, whether one
or more, for and m consideration of the sum of
Dollars ($. ) to Grantors m ha~d
~a~d by the State of Texas, acting by and through the Texas Transportation Commasslon, receipt of which
hereby acknowledged, and for which no lien Is retained, either expressed or unphed, do by these
presents (]rant, Bargain, Sell and Convey unto the State of Texas an easement m, along, upon and across
the prope~y which Is situated m the County of , State of Texas, wluch ~s more
particularly described m Exhibit "A," which ~s attached hereto and incorporated hereto for any and all
purposes
Thru easement conveyed hereto as for the purpose of opening, constxuctmg and maintaining a permanent
channel or drainage easement m, along, upon and across smd ]?remases descnhed m Exhibit "A" together
with the night and prlvdege at all tunes of the Grantee herem, its agents, employees and representatives of
regress and egress to and from smd premises for the purpose of making any unprovements, meddicatlons
or repau's which the State deems necessary
And for the same consideratIon described above and upon the same cond~tions, the Grantors have this day
granted and conveyed and by these presents do grant and convey unto the State of Texas any and ail nn-
provement$ presently exastmg upon the property described m smd Exhibit "A," SAVE and EXCEPT,
HOWEVER, it as expressly understood and agreed that Grantors are retaining title to the following
unprovements located on the aforesmd property, to wit
Grantors covenant and agree to remove the above-described unprovements from sa~d land by the
day of ,19 , subject, however, to such extensions of tn'ne as may be granted
by the State m writing, and fi, for any reason, Grantors fad or refuse to remove same within smd period of
tune prescribed, then, without any further conslderauon, the title to all or any part of such unprovements
not so removed shall pass to and vest m the State of Texas forever
As a part of the grant hereby made it ~s agreed between the pames hereto that any stone, earth, gravel or
callche which may be excavated In the opemng, constructton or maintenance of smd channel or drainage
easement may be removed from smdpremlses by the State and ut,i,~ed In the construction and mainte-
nance of the State highway system of Texas
TO HAVE AND. TO HOL..D the prenuses described m F, xhlbit "A" for smd purposes together with all
and smgular the rights, pnvilages and appurtenances thereto m any manner belonging, unto the State of
Texas forever, end Orantor hereby bmde itself, its he,rs, successors or asslgns, to Warrant and Forever
Defend, all ,and sIngular, the said easement hereIn c~mveyed unto the State of Texas, xts successors and
assigns, against every person whomsoever lawfully claxmmg or to clann the same or any pan thereof
Texas Department of Trsnspor~anon
Form D-15.31
Pa~2of3 Rev 9/91
IN WITNESS WHEREOF, this instrument is executed on th~ the
day of ,19.~
ACKNOWLEDGMENT
THE STATE OF TEXAS, }
COUNTY OF }
BEFORE ME, ~he undersigned, a Notary Pubhc, on th~s day personally appealed ,
, known to me (or proved
to me on the oath of , a credible witness,) to be the person(s) whose
name(s) is (a~) subscribed to the foregoing imuument and acknowledged to me that he/she/they executed the same for the
purposes and consideration thereto expresasd
GIVEN UNDER MY HAND AND SEAL OF OI~IqCE. tins day of ,19
Notal? Pubhc, State of Texas
My Commtmo~ ~xpu~ on ~h~ day of ,19,__
************************************************************************************
CORPORATE ACKNOWLEDGMENT
THE STATE OF TEXAS, }
COUNTY OF }
BEFORE ME, the und~rsigned, a Notary Public, on ~ day personally appeared
of , known to
me to be the'person and officer whos~ name is subscribed to the foregoing maimment and acknowledged to me thai the same
was the actlof the said , a corporalion, that he/sbe was
duly authorized to perfolm the same by appn)pnate ~soluuon of the boaid of duectors of such corporation and that be/she
executed the same as ~he act of such co~poralton for the pmpasas and considerauon the~m expre~ed, and m the capaa~y
thereto stated
GIVEN UNDER MY HAND AND SEAL OF OFFICE. ~us day of ,19
Notary Pubhc. Stere of Texas
My Commission expires on the day of ,19_~
Texas Depatiment of Trnnsportat~on
Form D-15-31
Pase3of3 Rev 9/91
After recording please return this instrument to:
CERTIFICATE OF RECORDING
THE STATE OF TEXAS, }
COUNTY OF }
A~0101 (t/83)
THE FOLLOWING COMMITMENT. ~R T1TLE INSURANCE IS NOT VALID UNL & YOUR NAME AND THElr~ ~ ~
POUCY AMOUNT ARE SHOWN IN SCHEDULE A, AND OUR AUTHORIZED REPRESENTATIVE HA~ ~
COUNTERSIGNED BELOW
COMMITMENT FOR TITLE INSURANCE ~.~,~ ~.~
ISEUED BY
No 1335 3
Alamo Title Insuranc
of Texas
We, Alamo Title Insurance of Texas, a Texas corporat(on, wdl issue our title ~nsurance policy or policies
(the Policy) to You (the proposed insured) upon payment of the premium and other charges due, and
compliance with the requirements in Schedule B and Schedule C Our Pohcy will be ~n the form approved
by the Texas Department of Insurance at the data of issuance, and will insure your interest in the land
described in Sohedule 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 delivery expenses.
This Commitment ends ninety (90) days from the effective date, unless the Pohcy is ~ssued sooner, or failure
to issue the Policy is our fault Our hability and obligations to you are under the express terms of this
Commitment and end when this Commitment explras
~ ALAMO TITLE INSURANCE OF TEXAS
Authonzed Signatory
DENTEX TITLE COMPANY
300 N. ELM STE 101
DENTON, TEXAS 76201
CONDITIONS AND STIPULATIONS
I If you have actual knowledge of any matter which may affect the title or mortgage covered by th~s
Commitment, that is not shown in Sohedule B, you must notify us in writing If you do not notify ua in
writing, our liability to you ~s 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 inourred
2 Our liability is only to you, and others who are included in the definition of Insured in the Policy to be
issued Our liability is only for actual loss incurred in your rehanoe on this Commitment to comply with
~ts requirements or to acquire the Interest in the land Our liability ~s limited to the amount shown in
Schedule A of this Commitment and wdl be subject to the following terms of the Policy
Insuring Provisions, Conditions and Stlpulabons, and Exclusions
(THIS COMMITMENT IS INVALID UNLESS SCHEDULES A, B, C AND D ARE ATTACHED HERETO )
Commitment for Titlellnsuranee Effective January 1, 1993
A32157(1/93)
Al rrto "ff. Insuranm
of
TEXAS TITLE INSURANCE INFORMATION
Title Insurance Insures you against loss resulting from certain El seguro de tltulo le asegura en relacibn a pbrdidas resultantse
risks to your title de clartce neagos qua pusden afectar el titulo de su propledad
The Commitment for Title Insurance is the title insurance El Comprom~an para Sogura de Titulo es la promeca de la
company's promise to ~asue the title ~nsurance policy The compafile aseguradora de tltulos de emitir la pbliza de seguro
Commitment ia a legal document You should rawew it de fltulo El Comprom~so es un documento lagat Usted debs
carefully to oomptstely understand it before your olos~ng date leerlo ou~dedoasmente y enterderlo completemante antes de la
feche para finalizar su tranaaoc~bn
Your Commitment for Title Insurance la a legal contract between you and us The Commitment is not an op~mon or report of your
title It is a contract t~ issue you a policy subject to the Commitment's terms and requirements
Before issuing a Commitment for Title Insurance (the Commitment) or a Title Insurance Pohcy (the Pohcy), the Title Insurance
Company (the Company) determines whether the title ~s insurable This determination has already been made Part of that
determination involves the Company's decision to insure the title except for certain risks that will not be covered by the Pohcy Some
of these risks ara listed in Schedule B of the attached Commitment aa Exceptions Other nsks ara stated in the Pohcy as Exclusions
These risks will not be covered by the Pohcy
Another part cf the determination ~nvolves whether the promise to insure ~a conditioned upon certe~n raqu~ramente being met
Schedule C of the Commitment lists these requiramente that must be satisfied or the Company will refuse the cover them You may
want to discuss any matters shown on Schedules Band C of the Commitment with an attorney These mailers will affect your title
and your use of the land
When your Policy la issued, the coverage wfli be hm~ted by the Policy s Excephons, Exclusions and Cond~hone, defined below
EXCEPTIONS ara title risks that a Policy generally covers but does not cover ~n a parbcular ~nstence Excephons ara shown
on Schedule B or d~scussed m Schedule C of the Commitment They can also be added if you do not comply w~th the
Conditions section of the Commitment When the Policy is issued, all Exceptions will be on Schedule B of the Pohcy
EXCLUSIONS are title risks that a Policy generally does not cover Exclusions ara contained in the Policy but not shown
or discussed In the Commitment
CONDITIONS ara additional provisions that quahfy or limit your coverage Conditions include your rasponsibihtlas and these
of the Company They are contained in the Policy but not shown or d~scussed ~n the Commitment The Pohcy Conditions
are not the same as the Commitment Conditions
You can get a copy of the policy form approved by the State Board of Insurance by calling the T~tle Insurance Company at
'I-800-EgS.~qISSO or by calling the htle insurance agent that ,ssued the Commitment The State Board of Insurance may rewse
the pohcy 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.~S~.~4S9.
Before the POlicy Is issued, you may request changes in the Policy Some of the changes to consider ara
Request amendment of the 'area and boundary" exception (schedule B, paragraph 2) To get th~s amendment, you must
furnlch a survey On the Owner Policy, you must pay an additional premium for the amendment If the survey ~s acceptable
[o the Company, your pol~'y will Insure you against loss because of discrepancies or conflicts in boundary lines,
encroachments or protrusions, or overlapping of ~mprovements The Company may then decide net to insure agmnet
specific boundary or survey problems by making 8geclaJ exceptions ~n the Policy
Allow the Company to edd an exception to "rights of parties in possession' If you refuse this exception, the Company
or the title insuren~e agent may inspect the property The Company may except to and not insure you against the nghts
of specific persons, such es renters, adverse owners or easement holders who occupy the land The Company may charge
you for the inspection
CO}~ITI~NT FOR TITLE INSURANCE
SCHEDULE A
EFFECTIVE DATEs September 09, 1997 GF NO.: 97-1735S
CO~IT~EHT NO.~ , iss~ September 23, 1997 a~ 8:00 a.~
( If applicable)
1 POLICY OR POLICIES TO BE ISS~D~
(a.) 0~ POLICY OF ~E INS~CE (Form T-I)
(Not applicable fo~ improved o~-to-four fa~ly residential real estate)
Policy ~un=: TO BE DETERMINED
P=oposed I~u=ed: CITY OF DE~ON
(b.) O~ERS POLICY OF TITLE INS~CE -
ONE-TO-PO~ P~LY ~SIDENCES (Form T-IR)
Policy ~un~
P~oposed I~ured:
(c.) ~RTO~EE POLICY O~ Till I~i~ (Fora
Policy ~unt~
Proposed I~ured:
Proposed Borro~r:
(d.) ~RTG~EE POLICY BI,ER ON I~ERI~ CONSTRUCTION LO~ (Form T-13)
Binder ~un~i
Proposed I~ured:
Proposed Borro~rl
( e. ) OTHE~
Policy
Proposed l~ured:
2. The inheres= in =he land covered by ~s Co~=~n~ is. Fee Simple
3. ~cord title =o =he land on ~he Effec=ive Da~e appears =o be vested i~
RUTH O. ~LL~ and ~G~T ~ and BILLY · ~LLUM and ~CIA L. ~LLUM
and ~CH~L W. ~LL~ a~ B~ ~LL~ ~
Legal description of =he land~
~1 =~ certain =rac~ of la~ being si~=ed in ~he ~ ~=e Survey, Abs=rac= No
1~06 a~ =~ N. Wade Survey, Abs~rac= No. 140~, Denton County, Te~s and being
par=ic~arly described in Ex, bi= "A" a=~ached hereto and ~de a par= hereof.
Dentex Title Company
Authorized Countersignature
FOR~ Commitment-Schedule A Effective January, 1 1993
EXHIBIT 'A'
County Denton Page 1 of 1
Highway U.S. 77
Project Umlta. From I.H. 36 Rev. June 30, 1994
To U.S.
CSJ
Account'
FIELD NOTES FOR PARCEL 6ALE)
BEING A PARCEL OF LAND SITUATED IN A CALLED 125-ACRE PARCEL OF LAND CONVEYED TO BARBARA
KELLUM, ET Al., RECORDED IN VOLUME 946, PAGE 263, DEED RECORDS DENTON COUNTY, TEXAS (DRDCT),
AND BEING SITUATED IN THE ALEXANDER WHITE SURVEY, ABSTRACT NO. 1406, CITY OF DENTON, DENTON
COUNTY, TEXAS, AND BEING MORE PARTICULARLY DESCRIBED AS FOLLOWS:
COMMENCING for reference et · found brass monument being a point in the north fight of way line of Loop 288
(a variable width fight of way);
THENCE N 80° 23' 23" W, along the north fight of way llne of Loop 288, a distance of 53.04 feet to e set 5/8-
inch iron md with an aluminum cap, being e point on the new north fight of way hne of U.S. 77,
THENCE N 58° 11' 36" W, along the new north fight of way line of U.S. 77, a diatance of 597 73 feet to a eat
E/8-inch iron md with an aluminum cap;
THENCE N 58° 12' 62" W, continuing along the new north right of way line of U.S. 77, a dlatance of 175 89
feet to a sat 5/8-inch Iron rod with an aluminum cap being the POINT OF BEGINNING,
(1) THENCE N 68° 12' 62" W, with the new north fight of way line of U.S 77, e distance of 80 00
feet to d set 518-inch Iron rod with an aluminum cap,
(2) THENCE N 31 o 47' 08' E, across said Kellum tract, a distance of 280 00 feet to · act 5/8-Inch
iron md with an aluminum cap;
(3) THENCE $ 58° 12' 62' E, a distance of 80 O0 feet to a set 5/8-1nch iron md with an aluminum
cap;
(4) THENCE S 31 o 47' 08' W, · distance of 280.00 feet to the POINT OF BEGINNING and containing
0.514 acres, or 22,400 square feet of land, more or less.
CODR~IT~ENT FOR TITLE INSURANCE
SCHEDULE B
EXOEPTIONS FROM ¢0VERAGE
G F. No.= 97-1735S
In addition to t~e Exclusions an~ Conditions and Stipulations, your Policy will not
cover loss, coats, attorneys' fees, en~ expenses resulting
1. The following restrictive covenants of record itemized below (We ~st either
insert specific recording data or delete thie exception)~
This exception is hereby deleted in its entirety.
2 Any dtsCrepanciee~ oo~flicts~ 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~ corporationst governments or other entities,
a. to tidelands, or lento comprising the shores or beds of navigable or
perennial rivers and streams~ lakest bays, gulfs or oceans, or
b. to lands beyond the line of the harbor or bulkhead lines as established
or chan~ed by any government, or
c to filled-in-lands, or artificial islands, or
d. to statutory water rights, includin~ riparian rights, or
e. to the area extending from the line of mean iow tide to the line of vegetation,
or the riEhts of access to that area or easement along and across that area
(Applies to the Owner Policy only.)
5. Standby feese taxes and assessments by any taxing authority for the year 1997 and
subsequent yeare~ and subsequent taxes and assessments by any taxing authority for
prior years due to change in lan~ nsaee or ownership
6. The tertas and conditions of the documents creating your interest in the land.
7. ~aterials furnished or labor performed in connection with planned construction
before signing and delivering the lien document described in Schedule ~ if the land
is part of the homestead of the owner. (Applies to the ~lortgegee Title Policy
Binder on ~nterim Construction Loan o~ly, and may be deleted if satisfactory
evidence is furnished to us before a hin~er is issued.)
8. Liens an~ leases that affect the title to the land, but that are subordinate to the
lien of the insured mortEage. (Applies to the ~ortgagee 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 exceptio~ ).
a. LIEN TO BE CREATED IN FORM ACCEPTABLE TO THIS COHPANY
b. This policy insures real estate only and does not insure title to any
removables which may be situated thereo~
c. Any matters that might arise as a result of a current survey of the
property.
d. Rights of parties in poeseseio~ (On OTP only)
e. Any visible and apparent easements over and across said property, the
existence of which does not appear of record.
Commitment-Schedule B Effective January 1, 1993
CONTINUATION OF SCHEDULE B
G. ff. No.: 97-1735S
f. Any pert or portion of the here~n described property, lying ~rithin the
bou~eriee of e public or private road or right of way.
$. Any outetandin$ oil~ sea and other =Lnerel interest owned by others of
record in the office of the County Clerk of Denton County, Texas, including, but
not li~ted to the followin~t
1) Lease between Ruth Kellum et al and Derrick Petroleum Inc. recorded on Oct
1, 1981 in Vol,~,_-~ 1104~ Page §84, Deed Records of Denton County, Texas
2) Lease between Billy H. Kellum et al and W.I~ Marshall recorded on April
1985 in Volume 1616~ Page 178, Eeal Property Records of Denton County, Texas
*Title to said m~neral leases/reservations h~ve not been researched subsequent
to date of document.
Easement granted to BRAZOS RIVER TRAN$~ISSION ELECTRIC COOPEI~qTIVE, INC.
from ~ W. GOOD%~N ET ~, by instrument filed DEC. 31, 1946 and recorded in
Volume 332, PaSs $01, DEED Records, Denton County, Texas.
i. Easement Eranted to DENTON COUNTY ELECTRIC COOPERATIVE, INC. from ~.
GOOD~N ET UX, by instr--~nt f~led AUG 15, 1947 and recorded in Volume 339,
Page 125, DEED Records, Denton County, Texas
Easement granted to TEXAS MUNICIPAL PO~ER AGENCY from RUTH G. KELLU~ ET AL,
by instrument filed JUNE 5, 1986 and recorded in Volume 1900, Page 300, REAL
PROPERTY Records, Denton County, Texas.
FORM~ Co-..4tment-Schedule B Effective January 1, 1993
CO~IT~NT POK TITLE INSURANCE
SCHEDULE C
G.F. No ~ 97-1735S
Your Policy will not cover loss, coats, attorney's fees, and expenses resulting from the
following requirements that will appear ea Exceptions in Schedule B of the Policy,
unless you dispose of these matters to our aatiafactio~ before the date the Policy is
ia sued.'
1. Documents creating your title or interest must be approved by ns and must be
signed, notarized and filed for record.
2 Satisfactory evidence must be provided that.
no person oooupying the land olaims any interest in that land against the
persons named in paragraph 3 of Schedule ~
all standby fees, taxes, assessments and charges against the property have been
paid,
ell improvements or repairs to the property are completed end 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 ia 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 othermetter that may affect title to the land or interest
insured, that arises or is filed after the effective data of this Commitment.
5. Upon receipt of a survey acceptable to Company and upon payment of all the
expenses in connection with the survey and the applicable premium, if any, Item 2 of
Schedule B will be deleted except for "shortages in area," subject to any additional
exceptions revealed by the survey.
6. Upon payment of the applicable premium, Paragraph 3 of Schedule B of any
Mortgagee Title Policy or Mortgagee Title Policy Binder on Interim Construction Loan
will be amended to read aa follows.' "Standby fees, taxes and assessments by any
taxing authority for the year 1997 and subsequent years."
?. Upon payment of the applicable premium, Paragraph 3 of Schedule B of any
Mortgagee Title Policy or Mortgagee Title Policy Binder on Interim Construction Loan
will be amended to include the following language. "Company insures that standby
fees, taxes and assessments by any taxing authority for the year 1997 are not yet
due and payable."
8. Note to all Buyers, sellers, borrowers, lenders and all parties having an
interest in the transaction covered by this commitment. The following constitutes a
major change in the procedures and requirements for disbursement of funds pursuant
to this transaction:
The State Board of Insurance has adopted Article 9.39A disbursement from trust fund
accounts and Procedural Rule P-2? which requires that sufficient "good funds" be
received and deposited to the trust fund account before diaburamant. "Good funds"
ia defined in part aa~ 1. cash or wire transfers; 2 certified checks, cashier's
checks and teller's checker 3 unterrified funds in amounts less than $1500.00,
includin$ personal checks, travelers checks, money orders, and negotiable orders of
FOR~ Commitment-Schedule C Effective January 1, 1993
ONTINUATION OF SCHEDULE C
G.¥. No.' 97-1735S
withdrawal~ provided multiple items shell not be used to avoid the $1500.00
lim~tatio~ and 4. unterrified funds in amounts of $1500.00 or more, drafts and any
other items when collected by the financial institutio~-
9. Obtain and return to title company a sinned statement made by purchaser/borrower
ecknowledsin$ receipt of title commitment prior to closins, and acceptance of the
exceptions shown un, er Schedule B thereof.
10. If the property is oocupied by other then owner, obtain tenant's disclaimer or
waivers otherwise, exception will be taken to rtEhts of parties in possession.
11. Obtain Beller's Affidavit as to no debts, liens, otc on said property for
recent improvements~ if any, or under UGG filinB.
12. A~ditional ClosinE Requirements (3 peso for~ must be si~ned end initialed by
all parties in th~s tranaactio~
13 Bankruptcies:
BARBARA I(. REEGE SS~N]A (PARIS) ~1841P 09118187
BARBARA I{EESE SS#452-64-0772 (HOUSTON) ~42002 02127/97
" SS#457-72-1660 " " "
REQUIREI~NT.. Affidavit with proper identification to affirm that BARBARA l~ REESE,
is not the same person as any of those who are parties to any of the above mentioned
bankruptcies Ol~ require evidence thet they have authority to enter into the
transaction
14. Bankruptcies.'
LAURA L. KELLUI/ SS#455-06-5303 (DALLAS) t37307D 10/31/90
REQUIREF~NT: Affidavit with proper identification to affirm that LAURA KELLU~ is
not the same person as any of those who are parties to any of the above mentioned
bankruptcies OR require evidence that they hove authority to enter into the
trans action
15. If RUTH G. IiELLU~ MAROAI~T HAYS, BILLY H. KELLU~ ~I~CIA L. KELLU~ ~KCHAEL W
KELLU~ and/or BARBARA KELLUH is married then spouse(s) should Join in conveyance
16. Require proper doe--~ntation showin~ who hes authority to execute documents on
behalf of CITY OF DENTON.
FOR~ Commitment-Schedule C Effective January 1, 1993
Alamo Title Insurance of Texas
COMMITMENT FOR TITLE INSURANCE GF NO 97-1735S
SCHEOULE D
Pursuant to the requirements of Rule P-gl, Basic Manual of Rules, Rates and Forms for the
writing of Title Insurance in the State of Texas, the following disclosures are made
1. The following individuals are directors and/or officers, as indicated, of Alamo Title
Insurance of Texas.
Alex H Halff, Chairman of the Board, Oon H Stt11, President, Ruth W
McCracken, Senior Vice President, Richard B. Squllla, Vice President,
Pat L. Wilson, Secretary-Treasurer
DIRECTORS~ Jack Biegler, Alex H. Halff, Ruth W McCracken, Travls M
Moursand, Robert T. Rork, Oon H. Still, E. Don Walker, Jr , James M.
Wilson and Pat L. Wilson
Alex N Malff, Howard A. Halff, the Estate of Thomas A Halff, and
Mortgage Loan & Agency Co. are owners of more than 10% of the stock of
Alamo Title Insurance of Texas. Travis M. Moursund and Alfred Moursund
are each an owner of more than ~0~ of the stock of Mortgage Loan &
Agency Co
2. The following disclosures are made by the Title Insurance Agent issuing this commitment
OWNERS of ~00% of Oentex Title Company Adams Title Company
01RECTORS of Oentex Title Company~ Phil Adams, Ruth Adams & Rebecca
Arnold-Moore
OFFICERS of Dentex Title Company Rebecca Arnold-Moore, President, Jack Hanna, Vice
President, Stacle Bourland, Secretary/Treasurer
Phil Adams and Ruth Adams own ~00% of the stock of Adams Title Company
3. You are entitled to receive advance disclosure of settlement charges in connection with
the oroposed transaction to which this commitment relates Upon your request, such
disclosure will be made to you Additionally, the name of any person, firm or corporation
receiving any sum from the settlement of this transaction will be disclosed on the closing
or settlement statement.
You are further advised that the estimated title premium* is
Owner Poltcy To Be Detezm~ned
Mortgage Policy
Endorsement Charges
Total ~.~gL~)et ermined
Of this tota] amount. 17.75 % will be paid to the policy issuing Title
~ w111 be retained by the Title Insurance Agenc~ and
Insurance Company~ ~m~ premium will be paid to other parties as follows
the remainder of the es
AMOUNT TO WHOM FOR SERVICES
* The estimated premium is based upon information furnished to us as the date of this
Commitment for Title Insurance. Final determination of the amount of premium will be made
at closing in accordance with the Rules and Regulations adopted by the State Board of
Insurance.
Alamo Title Insurance
of Texas
GF No
(Optional)
DELETION OF ARBITRATION PROVISION
(Not applicable to the Texas Residential Owner Pohcy)
ARBITRATION is a common form of alternative d~spute resolubon It can be a quicker and cheaper means to
settle a d~spute with your T~tle Insurance Company However, ~f you agree to arbitrate, you g~ve up your rtght to
take the T~tle Company to court and your r~ghts to dmcovery of ewdence may be hm~ted ~n the arb~trahon
process In addition, you cannot usually appeal an arbitrator's award
Your policy contains an arbitration provision (shown below) It allows you ~ to ~
If the amount of Insurance Is $1,000,000 or lees If you want to retain your right to sue the Company In case of a
dispute over a claim, you must request deletion of the arbitration provision before the policy Is Issued You can
do this by signing this form and returning It to the Company at or before the closing of your real estate trans-
action or by writing to the Company
The Arb~trabgn prows~on m the Pohcy ~s as follows
"Unless prohibited by apphcable law or unless th~s arbitration section ~s deleted by specd~c prows~on
m Schedule B of this pohcy, e~ther the Company or the Insured may demand arbitration pursuant to
the Title Insurance Arbitration Rules of the American Arbitration Assocmt~on Arbitrable matters may
include, but are not hm~ted to, any controversy or claim between the Company and the Insured aris-
ing out of or relating to th~s Policy, and serwce of the Company m connection w~th ~ts ~ssuance or the
breach of a pohcy prowslon or other obhgatlon All arbitrable matters when the Amount of Insurance
~s $1,000,000 or less SHALL BE arbitrated at the request of e~ther the Company or the Insured, unless
the ~nsured 18 an mdiwdual person (as distmgmshed from a corporation, trust, partnership, assocta-
tion or other legal entity) All arbitrable matters when the Amount of Insurance ~s m excess of
$1,000,000 shall be arbitrated only when agreed to by both the Company and the Insured Arb~tratmn
pursuant to this Pohcy and under the Rules in effect on the date the demand for arb~trabon ~s made
or, at the option of the Insured, the rules m effect at the Date of Pohcy shall be binding upon the
parties The award may include attorney's fees only ~f the laws of the state m which the land is located
permit a court to award attorneys' fees to a prevaihng party Judgment upon the award rendered by
the Arbitrator(s) may be entered ~n any court hawng jurisdiction thereof
The law of the s~tus of the land shall apply to an arb~trabon under the T~tle 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