1996-110F \WPDOCS\ORD\DOBBS ORD
ORHIN CE NO q --II 0
AN ORDINANCE OF THE CITY OF DENTON, TEXAS, AUTHORIZING THE CITY
MANAGER TO EXECUTE A CONTRACT BETWEEN THE CITY AND JACK A DOBBS
AND JANICE M DOBBS FOR THE PURCHASE OF REAL PROPERTY IN ACCORDANCE
WITH THE CAPITAL IMPROVEMENTS PROGP3%MFOR DRAINAGE, AUTHORIZING THE
EXPENDITURE OF FUNDS, AND PROVIDING FOR AN EFFECTIVE DATE
THE CITY COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS
SECTION I That it approves the attached agreement between the
C~ty of Denton and Jack A Dobbs and Janlce M Dobbs for the
purchase of real property in accordance with the capital
improvements program for drainage and authorizes the City Manager
to execute the agreement on behalf of the City
SECTION II That ~t authorizes the expenditure of funds in
accordance w~th the terms of the agreement
SECTION III That this ordinance shall become effective
immediately upon its passage and approval
PASSED AND APPROVED this the ~ day of /~_~ , 1996
BOB CASTLEBERRY, MA7 ~
ATTEST
JENNIFER WALTERS, CITY SECRETARY
APPROVED AS TO LEGAL FORM
HERBERT L PROUTY, CITY ATTORNEY
REAL ESTATE CONTRACT
STATE OF TEXAS
COUNTY OF DENTON
THIS CONTRACT OF SALE is made by and between Jack A Dobbs and
wife Janlce M Dobbs (hereinafter referred to as "Seller") and CITY
OF DENTON, TEXAS, a home rule municipality, of Denton, Denton
County, Texas, (hereinafter referred to as "Purchaser"), upon the
terms and conditions set forth herein
PURCHASE AND SALE
Seller hereby sells and agrees to convey, and Purchaser hereby
purchases and agrees to pay for, the tract of land known as 808
Alice Street, Denton, Denton County, Texas, being more particularly
described in Exhibit A attached hereto and incorporated herein by
reference for all purposes together with all and singular the
rights and appurtenances pertaining to the property, including any
right, title and interest of Seller in and to ad]acent streets,
alleys or rights-of-way (all of such real property, rights, and
appurtenances being hereinafter referred to as the "Property"),
together with any improvements, fixtures, and personal property
situated on and attached to the Property, for the consideration and
upon and subject to the terms, provisions, and conditions
hereinafter set forth However, it is expressly understood that the
seller, at their own expense (within 60 days after date of closing)
remove the house, foundations, outbuildings and any other
improvement necessary to leave the lot clear and free of any and
all obstructions (concrete flat work, drives and sidewalk may
remain, any and all landscaping, trees and natural vegetation will
be permitted to remain)
PURCHASE PRICE
1 Amount of Purchase Price The purchase price for the
Property shall be the sum of $100,000 00 (minus closing cost such
as cost of title policy, escrow fees, preparation of deed, etc)
2 Payment of Purchase Price An amount of $95,000 of the
Purchase Price shall be payable in cash at the closing (minus cost
as provided for within this contract), and the City of Denton w~ll
retain $5,000 until the lot is cleared as stated previously If
lot is not cleared, the $5,000 will be used to clear lot Any
excess funds will be paid to seller
PURCHASER'S OBLIGATIONS
The oblagatlons of Purchaser hereunder to consummate the trans-
actaons contemplated hereby are subject to the satisfaction of each
of the following condatlons any of which may be waaved an whole or
in part by Purchaser at or prior to the closing
1 Preliminary Tatle 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 zssue a pre-
l~mlnary title report (the "Title Report") accompanied by copzes of
all recorded documents relatang to easements, raghts-of-way, etc ,
affectang the Property Purchaser shall gzve Seller written notice
on or before the expiration of ten (10) days after Purchaser re-
ceives the Title Report that the condltaon of title as set forth in
the tztle bander is or is not satisfactory, and in the event Pur-
chaser states the condition is not satisfactory, Seller shall, at
Seller's optaon, promptly undertake to elzmlnate or modify all
unacceptable matters to the reasonable satasfactaon of Purchaser
In the event Seller as unable to do so within ten (10) days after
receipt of wratten notice, thas Agreement shall thereupon be null
and voad for all purposes and the Escrow Deposit shall be forthwith
returned by the Tatle Company to Purchaser, otherwise, this con-
datlon shall be deemed to be acceptable and any ob3ectlon thereto
shall be deemed to have been waived for all purposes
2 Survey Upon written request by Purchaser delivered to
Seller contemporaneously with Purchaser's delivery of an executed
orlgznal of thas Agreement, Seller shall wlthzn twenty (20) days
from the date hereof, at Purchaser's sole cost and expense, delayer
to Purchaser a current survey of the Property, prepared by a duly
licensed Texas land surveyor acceptable to Purchaser The survey
shall be staked on the ground, and shall show the location of all
zmprovements, highways, streets, roads, railroads, rzvers, creeks,
or other water courses, fences, easements, and rights-of-way on or
ad3acent to the Property, if any, and shall contain the surveyor's
certification that there are no encroachments on the Property and
shall set forth the number of total acres comprlsang the Property,
together with a metes and bounds description thereof
Purchaser will have ten (10) days after receapt of the survey
to revzew and approve the survey In the event the survey is
unacceptable, then Purchaser shall within the ten (10) day peraod,
gzve Seller written notice of this fact Seller shall, at Seller's
option, promptly undertake to eliminate or modzfy the unacceptable
portions of the survey to the reasonable satisfaction of Purchaser
In the event Seller is unable to do so wlthzn 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 Tztle Company to
Purchaser Purchaser's failure to g~ve Seller this wratten notice
shall be deemed to be Purchaser's acceptance of the survey
PAGE 2
3 Seller's Compliance Seller shall have performed, ob-
served, and complied with all of the covenants, agreements, and
conditions requlred by this Agreement to be performed, observed,
and complied with by Seller prior to or as of the closing
REPRESENTATIONS AND WARRANTIES OF SELLER
Seller hereby represents and warrants to Purchaser as follows,
which representations and warrant~es shall be deemed made by Seller
to Purchaser also as of the closing date
1 There are no part~es ~n possession of any portion of the
Property as lessees, tenants at sufferance, or trespassers
2 Except for the prior actions of Purchaser, there ~s no
pending or threatened condemnation or s~mllar proceeding or asses-
sment affecting the Property, or any part thereof, nor to the best
knowledge and belief of Seller is any such proceeding or assessment
contemplated by any governmental authority
3 Seller has complied w~th 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 l~m~ted
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 L~ablllty Act
(CERCLA), as amended
CLOSING
The closlng shall be held at the off~ce of Dentex T~tle
Company on or before November 1, 1996, or at such title company,
t~me, date, and place as Seller and Purchaser may mutually agree
upon (whlch date ~s herein referred to as the "closing date")
CLOSING REQUIREMENTS
1 Seller's Reaulrements At the closing Seller shall
A Deliver to Purchaser a duly executed and acknowledged
General Warranty Deed conveying good and marketable t~tle
in fee simple to all of the Property, free and clear of any
and all liens, encumbrances, conditions, easements, assess-
ments, and restrictions, except for the following
PAGE 3
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 Obllqatlons here-
of, and
3 Any exceptions approved by Purchaser
in writing
B Deliver to Purchaser a Texas Owner's Title Policy at
Seller's sole expense, zssued by Dentex Tltle Company, (the
"Title Company"), or such title company as Seller and
Purchaser may mutually agree upon, in Purchaser's favor in
the full amount of the purchase przce, znsurlng Purchaser's
fee s~mple title to the Property sub]ect only to those
title exceptions listed in Closlnq Requirements hereof,
such other exceptions as may be approved in wrmtlng by
Purchaser, and the standard prmnted exceptlons contained in
the usual form of Texas Owner's Tmtle Policy, provided,
however
1 The boundary and survey exceptions
shall be deleted ~f required by Purchaser
and if so required, the costs associated
with same shall be borne by Seller,
2 The exception as to restrictive cove-
nants shall be endorsed "None of Record",
3 The exception for taxes shall be
limited to the year of closing and shall
be endorsed "Not Yet Due and Payable", and
4 The exception as to liens encumbering
the Property shall be endorsed "None of
Record"
C Deliver to Purchaser possession of the Property on the
day of closing
2 Purchaser's Reaulrements Purchaser shall pay the pay the
consideration as referenced in the "Purchase Price" section of this
contract at Closing in immediately available funds
3 Closlna Costs Seller shall pay all taxes assessed by any
tax jurisdiction through the date of Closing
PAGE 4
All other costs and expenses of closing in consummating the
sale and purchase of the Property not specifically allocated herein
shall be equally shared by Purchaser and Seller
REAL ESTATE COMMISSION
Any real estate commissions occasioned by the consummation of
this Agreement shall be the sole responsibility of Seller, and
Seller agrees to indemnify and hold harmless Purchaser from any and
all claims for these commissions
BREACM 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 speclflc performance of this Agreement or terminate this
Agreement
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
MISCELLANEOUS
1 Asslqnment of Aqreement 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, addres-
sed to Seller or Purchaser, as the case may be, at the address set
forth beneath the signature of the party
4 Texas Law to Appl¥ This Agreement shall be construed
under and in accordance with the laws of the State of Texas, and
all obligations of the parties created hereunder are performable in
Denton County, Texas
PAGE 5
5 Partaes Bound This Agreement shall be binding upon and
anure to the benefit of the parties and thear respective heirs,
executors, admanastrators, legal representataves, successors and
assigns where permitted by this Agreement
6 Leaal Construction In case any one or more of the pro-
vasaons contained an this Agreement shall for any reason be held to
be anvalad, illegal, or unenforceable zn any respect, saad
validity, illegality, or unenforceablllty shall not affect any
other provaslon hereof, and th~s Agreement shall be construed as
the invalid, illegal, or unenforceable provision had never been
contaaned herein
7 Prior Aqreements Superseded This Agreement constitutes
the sole and only agreement of the parties and supersedes any prior
understandangs or wratten or oral agreements between the partaes
respecting the within subject matter
8 Tame of Essence Time is of the essence zn thas Agreement
9 Gender Words of any gender used an th~s 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 eather party,
both parties shall promptly execute a memorandum of thas Agreement
suitable for fllzng of record
11 ComDlaance In accordance wzth the requarements of the
Texas Real Estate License Act, Purchaser as hereby advased that it
should be furnlshed with or obtain a policy of title ansurance or
Purchaser should have the abstract coverang the Property examaned
by an attorney of Purchaser's own selection
12 Time Limit In the event a fully executed copy of thas
Agreement has not been returned to Seller wath~n thirty (30) days
after Seller executes thas Agreement and delayers same to
Purchaser, Seller shall have the right to terminate thas Agreement
upon written notace to Purchaser
PAGE 6
DATED thls /! day of ~ , 1996
SELLER PURCHASER
THE CITY OF DENTON, TEXAS
J~k A Dobbs ~ed~B~navldes
City Manager
~~ ~~ 215 E McK~nney
Denton, Texas 76201
~ranlce M Dobbs
APPROVED AS TO LEGAL FORM
HERBERT L PROUTY, CITY ATTORNEY
STATE OF TEXAS
COUNTY OF DENTON
s instrument was acknowledged before me on this ./~ day
of ~ , 1996 by Jack A Dobbs
Notary '~ubllc ~n and for Texas
STATE OF TEXAS
COUNTY OF DENTON
T~rument way acknowledged before me on this / ~ day
of 1996 by Janlce M Dobbs
Not~y Pubi16 in and for Texas
PAGE 7
STATE OF TEXAS
COUNTY OF DENTON
This instrument is acknowledged before me, on this ~h day
of ~;')/~,~_ , 1996 by Ted Benavldes City Manager, of the
Clty'~f~n~on, a municipal corporation, known to me to be the
person and officer whose name is subscribed to the foregoing
instrument and acknowledged to me that the same was the act of the
said City of Denton, Texas, a munlclpal corporation, that he was
duly authorized to perform the same by appropriate ordinance of the
City Council of the City of Denton and that he executed the same as
the act of the said City for purposes and consideration therein
expressed, and in the capacity therein stated
AEE006D8
PAGE 8
WARRANTY DEED
THE STATE OF TEXAS § 0G08~6
COUNTY OF DENTON §
Jack A Dobbs and Jamce M Dobbs, of the State of Texas, Grantors, for and in
consideration of the sum of TEN AND NO/100 ($10 00) DOLLARS and other valuable
consideration to the undersigned paid by the Grantee herein named, the receipt of whmh is hereby
acknowledged, have GRANTED, SOLD AND CONVEYED, and by these presents do GRANT,
SELL AND CONVEY unto City of Denton, Texas, Grantee herein, of the County of Denton and
State of Texas, whose mmhng address is 215 E McKlnney, Denton, Texas 76201, all of the
following described real property m Denton County, Texas, to-wit
Lot, tract or parcel of land lying and being situated in the City and County of Denton,
State of Texas, being known as the South 20 45 feet of Lot 18 and the North 54 0 feet
of Lots 19 and 20, Block B, Daniel's Sub-Division, an Addition to the City of Denton,
Denton County, Texas, according to the plat thereof recorded in Volume 350, Page 56,
Deed Records of Denton County, Texas
Reservations from and exceptions to conveyance and warranty.
This deed is executed and delivered subject to all easements, reservations, conditions,
covenants and restrictive covenants as the same appear of record in the office of the County Clerk
of the county aforesaid It is also subject to any outstanding oil, gas and other mineral interest
owned by others of record in the Office of the County Clerk of the county aforesaid
TO HAVE AND TO HOLD the above described premises, together with all and singular
the rights and appurtenances thereto in anywise belonging, unto the said Grantee, its successors
or assigns forever, and we do hereby bind ourselves, our heirs, executors, administrators,
successors or assigns to WARRANT AND FOREVER DEFEND all and singular the said
premises unto the smd Grantee, its successors or assigns, agmnst every person whomsoever
lawfully clmming or to claim the same or any part thereof
EXECUTED this 2--~ day of August, 1996
JackA o~bbs
~Id~e M Dobbs
THE STATE OF TEXAS §
COUNTY OF DENTON §
Tbas instrument was acknowledged before me on the ~-~ day of August, 1996, by
Jack A Dobbs and Jamce M Dobbs
Notary Public, State of Texas
~ ,,~,~,~% STACIL BOURn\ND
AFTER RECORDING RETURN TO: ~//,,~"~/k"X~, NOTARY PUBLIC
City of Denton l~>oo~,o,~o~o~*,*o**-~e,~-*
215 E MeK~ey
Denton, TX 76201
DENTEX TITLE COMPANY
300 N. ELM, STE. 101
DENTON, TEXAS 76201
817-566-0282
FAX 817-566-6445
City of Denton
ATTN Ted Benavldes, City Manager
215 E McKlnney
Denton, Texas 76201
RE G F # 96-1644S
PROPERTY 808 Alice Street, Denton, Texas
Dear Mr Benavldes
Enclosed herewith please find your Owner Policy of Title Insurance
on the above referenced transaction
Your original Warranty Deed was filed with the County Clerk of
Denton County, Texas It will be returned to you by the County
Clerk
If you require anything further, please do not hesitate to call
Thank you for selecting Dentex Title Company to assmst you with
your title insurance needs It has been our pleasure to do
business wzth you
Sincerely,
DENTEX TITLE COMPANY
encl
OWNER POLICY OF TITLE INSURANCE
Issued by
428797
Alamo Title Insurance
of Texas
SUBJECT TO THE EXCLUSIONS FROM COVERAGE, THE EXCEPTIONS FROM COVERAGE
CONTAINED IN SCHEDULE B AND THE CONDITIONS AND STIPULATIONS, ALAMO TITLE INSURANCE OF
TEXAS, a Texas corporabon, here~n called the Company, insures, as of Date of Pohcy shown ~n Schedule A,
agmnst loss or damage, not exceeding the Amount of Insurance stated ~n Schedule A, sustained or ~ncurred by
the ~nsured by reason of
1 T~tle to the estate or ~nterest described ~n Schedule A being vested other than as stated there~n,
2 Any defect ~n or hen or encumbrance on the t~tle,
3 Any statutory or constitutional mechanic's, contractor's, or mater~alman's hen for labor or material hawng
~ts ~ncept~on on or before Date of Pohcy,
4 Lack of a r~ght of access to and from the land,
5 Lack of good and ~ndefeas~ble t~tle
The company also w~ll pay the costs, attorneys' fees and expenses ~ncurred ~n defense of the t~tle, as
~nsured, but only to the extent prowded in the Conditions and Stipulations
By ~ By President
FORM T 1 Owner Policy of Title Insurance Effective January 1 1993
EXCLUSIONS FROM COVERAGE
The following matters are expressly excluded from the coverage of [h~s policy and the Company w~ll not pay loss or darnage costs attorneys fees or expenses that arise by reason of
(a} Any law ordinance or governmental regulabon (including but not I~m~ted to building and zoning laws ordinances or regulations) restnctlng regl~latlng prohibiting or relating
to (11 the occupancy use or enjoyment of ~he land hU the character d~menslons or location of any improvement now or hereafter erected on the land (iii) a separation in
ownership or a cbange in the dimensions or area Of the land or any parcel of which the land IS or was a par[ or (~v) environmental protection or the effect of any violation of
these laws ordinances Or governmental regulations exceth 1o the extent that a notice of the enforcement tderect or a nctlce of a defect lien or encumbrance resulth~g from
a violation or alleged violation affecl~ng the land has been recorded in the public records at Date of
(b) Any governmental police power not excluded by (a) above except to the extent that a notice of the exercise thereof or a nohce of a defect I~en or encumbrance resulting
from a violation or alleged VlOlabon affectmg the land has been recorded In the pubhc records at Date of Policy
2 Rights of eminent domain unless not,ce of the exercise thereof has been recorded m the pobl~c records at Date of Policy but not exclud,ng from coverage any taking that has
occurred prior to Date of Policy which would be b~ndlng on the rights of a purchaser for value w~thout knowledge
3 Defects liens encumbrances adverse claims or other matters
(a} created suffered assumed or agreed to by the msured claimant
(b) not known to the Company not recordPd m the public records at Date of Policy but known to the msured claimant and not d~sclosed in wntmg to the Company by the fnsured
claimant prior to the date lhe insured cia~marrt became an insured under this policy
(c) resulting ~n no loss or damage to the Insured claimant
rd} attaching or created subsequent to Date of Pohcy
(e) resulbng in Ices or damage that would not have been sustained d the ~nsured claimant had paid value for the estate or interest Insured by this Policy
4 Tbs refusal of any person to purchase lease or lend money on the estate or interest covered hereby in the land described in Schedule A because of unmarketability cf the title
5 Any claim which arises out of ~he transaction vest~ng in the person named in paraglaph 3 of Schedule A the estate or interest insured by this policy by reason of the operation of
federal bankruptcy state msolvency or other state or federal creditors nghts laws that ~s based on either (~) the transaction crsatlng the estate or ~nterect Insured by this Foltcy
being deemed a fra~rdulent conveyance or fraudulent transfer or a voidable dlstdbuhon Or voidable dividend or (11) the suberdlnatlon or recharactenzatlOrl of the estate or Interest
insured by th~s Policy as a result of the oppl~cat~on of the doctrine ct equitable subordlnahon or (~11) the transaction creating the estate or mteresl insured by this Policy being
deemed a preferential transfer except where the preferential transfer results from the failure of ~he Company or ~ts ISsumg agent to timely hie for record the instrument of
to the ~nsured after delivery or the faHurs of such recordation to impart not,ce to a purchaser for value or a judgment or Iron creditor
CONDITIONS AND STIPULATIONS
DEFINITION OF TERMS
The following terms when used In this policy mean
(a) insured the insured named ~n Schedule A and subject to any rights or defenses the company wourd have had agamst the named ~nsured those who succeed to the
mterest of the named msured by operation of law as thsdngu~shed from purchase ~nclud~ng but not I~mded to he,rs dlstnbutees dewsees sun/lycra personal
representatives next of kin or corporate partnership or fldL~clary successors and speclhcaily without limitation the following
(~) the Successors m interest to a corporabon resuitmg from merger or consolidation or the dlctnbubon of the assets of the corporation upon partial or comptete
(h) the padnersnlp successors In reforest to a general or limited partnership whrcb dissolves but does not terminate
(m) the successors in interest to a general or limited pa rtnershtp resulting from the dlstnbut~on of the assets of the general or limited partnership upon partial or complete
(iv) the successors m mterest to a Jomt venture resultmg from the distribution of the assets of the iomt venture upon pethal or complete liquidation
(v) the successor or substitute trustee(s) of a trustee named m a written truct ~nctrument or
(vi) the successors in interest to a trustee or trust resulting from the distribution of all ol pad of the assets of the trust to the benehClades thereof
(b) insuredclalmanl anlnsUrsdclalmlnglossordamage
(C) knowledge or known actual knowledge not construchve knowledge or nct~ce that may be imputed to an insured by reason of the public records as defined in thio policy
or any other records which impart constructive nctlce of matters affecting the land
rd} land the land descnbed or referred to in Sthledule A and improvements affixed thereto that by law constitute real property The term land does not include any property
beyond the lines of the area described or referred to ~n Schedule A nor any right title mterest estate or easement in abutting streets roads avenues alleys lanes ways
or waterways but nothing harem shall modify or limit the extent to which a right of access to and from the land is ~nsured by this policy
re) mortgage mortgage deed of trust trust deed or other securdymnstrument
{f) public records records established under state statu~es as Date of Porlcy for the purpose of ~mpartlng constructive nctlce of matters relating to real property to purchasers
forvalueaedwlthoutknowledge WlthrespecttoSectlonl(a)(iv)oftheExcluslonsFromCoverage publlcrecords alsosharhncludeenvlronmentalprotectionllenefiledln
the records of the clerk of the United States d~ctrlct court for the dlstnct in which the land is located
(g) access regal right of access to the land and not the physical condlhon of access The coverage provided as to access does not assure the adequacy of access for the use
intended
CONTINUATION OF INSURANCE AFTER CONVEYANCE OF TITLE
The coverage of this policy shall continue in force as of Date of Policy in favor of an insured only so long as Ihs insured retams an estate or interest In the land or holds an
Indebtedness secured by a purchase money mortgage g~;en by a purchaser from the ~nsured or only so long as ~he insured shall have liability by reason of covenants of
warranty made by the insured ~n any transfer or conveyance of the estate or ~nterest Th~s policy shall not continue ~n force ~n favor of any purchaser Irom the insured of either (i)
an estate or mtersct m the land or {.) and mdebtedness secured b/a purchase money mortgage g~ven to the msured
NOTICE OF CLAIM TO BE GIVEN BY INSURED CLAIMANT
The msured shall notify the Company promptly m writing ¢) m case of any I~t~gat~on as set forth m Section 4(a) below or (~} in case knowledge shall come to an msured hereunder
of any claim of t~tle or reforest that ~s adverse to the title to the estate or interest as ~nsured and that m~gdt cause loss or damage for which the Company may be I~able by virtue
of this policy II prompt notice shall net be given to the Company then as to the insured all hed~l~ty of the Company shall terminate wdh regard to the matter or matters for which
prompt nct~ce is redu~red prowbed ho,~ ever that failure to notdy the Company shall m no case prejudice the rights of any msured under this policy unless the Company shall be
prejudiced by the failure and then only tbs extent of the prejudice
When after the date of the policy the ~nsursd notifies the Company as required herein of a ben encumbrance adverse claim or other defect m title to the estate or inta~st m
the land insured by th~s policy that ~s not excluded or excepted from the coverage of th~s policy the Company shall promptly Investigate the charge to betermme whether the
encumbrance adverse claim or defect ~s vahd and not barred by law or statute The Company shall notify the insured in wntmg within a reasonable time of its determination as
to the validity or Invalidity of ~he In~Ursd s claim or charge under the policy If the Company concludes that the I~en encumbrance adverse claim or defect ~s not covered by this
policy or was otherwise addressed m the closing of the transaction m connection wdh wh,ch th~s policy was ~ssued the Company shall specifically adwse the insured of the
reasons let ~ts dctermmat~on If the ('ompany concludes that the I~en encumbrance adverse claim or defect ~s valid the Company shall take one of the following actions (I)
inct~tute the necessary prcceedmgs to clear the I~en encumbrance adverse claim or defect from the l~tle to the estate as ~nsured (H) indemmfy the Insured as provided m this
policy (ill) upon payment of aporoprlcte premium and chergc, s g'erefor issue to the insured claimant or to a subsequent owner mortgagee or holder of the estate or Interest in
the land msured by this policy a policy of l~tle m~urance wlthoLt excepbon for the lien encumbrance adverse claim or defect sa~d policy to be m an amount equal to the currant
value of the property or ~f a mortgagee policy the amount of the lean Ov} indemnify another title ~nsurance company in connection w~th its issuance of a pellcy(leS) of riga
insurance w~thout exception for the lien encumbrance adverse claim or defect (v) secure a release or other document dlschaq~lng the hen encumbrance adverse claim or
defect or (w} undertake a comblnahon of (~) through (v) herein
R-03 Property CatE. O
1000 1023 O0 County Code' 121
OWNER POLICY OF TITLE INSURANCE
SCHEDULE A
GF No.: 96-1644S
Policy No.: 428797 Issued with Policy No
Amount of Insurance. $100,000.00
Premiu~ $1,023. O0
Date of Policy: August 30, 1996 at 3:19 P ~
1. Name of Insured'
CITY OF DENTON, TEXAS
2. The estate or interest in the land that is covered by this policy is' Fee Simple
3. Title to the estate or interest in the land is insured as vested in
CITY OF DENTON, TEXAS
4 The land referred to in this policy is described as follows
Lot, tract or parcel of land lying and being situated in the City and County of
Denton, State of Texas, being known as the South 20.45 feet of LOT 18 and the North
54.0 feet of LOTS 19 and 20, BLOCK B, DANIEL'S SUB-DIVISION, an addition to the City
of Dentor~ Denton County, Texas, accordins to the plat thereof recorded in Volume
350, Paga 56, Deed Records of Denton County, Texas
Dentex Title Company
Alamo Title Insurance of Texas Authorized Countersignature
FORM T-1. O~zner Policy-Schedule A Effective January 1, 1993
OWNER POLICY OF TITLE INSURANCE
SCHEDULE B
G.F. No.. 96-1644S
Policy No.: 428797
EXCEPTIONS PROM COVERAGE
This Policy does not insure against loss or damage (and the Company will not pay costs,
attorneys' fees or expenses) that arise by reason of the terms and conditions of the
leases or easements insured, if any, shown in Schedule A and the following matters
1. The following restrictive covenants of record intemized below (the Company must
either insert specific recording data or delete this exception.
Volume 356, Page 70 and Volume 358, Page 425, Deed Records of Denton County, Texas
(Deleting therefrom any restrictions indicating any preference, limitation, or
discrimination based on race, color, religion, sex, handicap, familial status, or
national origin.)
2. Any discrepancies, conflicts, or shortages in area or boundary lines, or any
encroachments or protrusions, or any overlapping of improvements
3 Homestead or community property or survivorship rights, if any, of any spouse of any
insured.
4. Any titles or rights asserted by anyone, including, but not limited to, 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 right of access to that area or easement along and across
that area.
5 Standby fees, taxes and assessments by any taxing authority for the year 1996 and
subsequent years, and subsequent taxes and assessments by any taxing authority for
prior years due to change in land usage or ownership
6 The following matters and all terms of the documents creating or offering evidence of
the matters (We must insert matters or delete this exception)
a Any visible and apparent easements over and across said property, the
existence of which does not appear of record
b. Any part or portion of the herein described property, lying within the
boundaries of a public or private road or right of way
c Rights of parties in possessio~
d Any outstanding oil, gas and other mineral interest owned by others of record
in the office of the County Clerk of Denton County, Texas
Alamo Title Insurance of Texas
Form T-1 Owner Policy-Schedule B Effective January 1, 1993
~-z.R
xo~,o~
CONDITIONS AND B'I1PULATIONB Continued
LIABILITY NONCUMULATIVE
h Is expressly undemtond that the amount of Insurance under this policy shall be reduced by any amount the Company may pay under any policy Insuring a mortgage to which
exception Is taken In Schedule B or to which the insured has agreed assumed or taken subject or which Js bereaffer executed by an Insured and which is a charge or lien on
the estate or interest deschbed or referred to In Scheduld A and the amount ;o paid shall be deemed a payment under th~s policy ~o the insured owner
2 PAYMtiNT OF LOSS
(a) No payment shall be made wither producing this policy for endorsement of the payment unless the pohcy has been lost or destroyed m which case proof of losS or
destruction shall be furnished to the settsfacgon of the Company
{b)When I~edillty and the extent of lose or damage has been definitely fixed in accordance with these Condihons and Stibulabone the loss or damage shell be payable within 30
days thereafter
13 SUBROGATION UPON PAYMSNT OR BETTLEMENT
(a) The CompoI~/'e RIsnt of Subrogetlon
Whenever the Company shall have settled end paid a claim under this policy all right of subrogation shall vest ~n the Company unaffected by any act of the insured cldlmsot
The Company shall be subrepated to and be entitled to all rlghta and remedies that the insured claimant would haw had agsinta any person or property in respect th the
claim had this policy not been Issued If requested by the Company the Insured claimant shall transfer to the Company all rights and remedies against any person or propa~
neceassry In order to perfect this right of subrogation The Insured cldimant shall permit the Company to sue compromise or settle In the name of the insured eld~mant and to
use the name of the ~nsured clelmsot in any transaction or Ilflgction Involving these dghts or remedlds
If a payment on account of e claim does not fully cover the loss of the Insured ctaImant the Company shall be eubrogcted to these rightS antt remedies in the proportion
that the Compsoy e payment bears to the whold amount of the loss
If loss should result from any act of the insured claimant, es stated above that act shall not void thls policy but the Company m that event shall be required to pay only
that pert of any losses insured against by this polk:y that shall exceed the amount if any lost to the Company by reason of the impairment by the insured claimant of the
Company s right of aubrogadon
(b) The Company'e RIgMi Agelnef Non InIured Obligor~
The Compaby'e dghl of subrogation against r~on Insured obligors shall exist and shal~ include, without limitation the dgbtS Gl the Insured to Indemnihes guaranties o~er
policies of insurance or bonds notwltbetandlog any terms or conditions contalned in those ~nstrumantS that provide for subrogation rightS by reason of this policy
14 ARBITRATION
Unless prohibbe by app icable aw o un ess this arbitration sect on s de a ed by specl Ic provision n Schedu e B of this policy either the company or the insured may demand
arbgrthlon pursuit to the Title Insurance Athdratldn Rules of the American Arbthatlon Assoc~a on Arb~ rgb e matters may nclude but a e net limited to any controvemy or o a m
between the Company and the Insured adsing out of or relagng to this pctlCy any service of the Company in connection with its issuance or the breach of a poJicy provision or other
obllgtaion All arbitrable matters when the Amount of Insurance is $1 000 000 or less SHALL BE arbitrated at the request of either the Company or the Insured untSss the insured
ia an Indlwdeal person (as dlstlngolsbed from a corporation trust partnership association or other legal enhty) All arb~frable matters when the Amount of Insurance ~s in excess of
$1 000 0~0 shall be arbitrated only when agreed to by both the Company and the insured Arb~fradon pursuant to this pohcy and under the Rules in effect on the date the demand
for arbitration is made or at the option of the insured the Rules in effect at Date et Policy sbell be binding upon the parbes The award may include attorneys tees only if the laws
of the state ~n which the land is located permit a court to award attorneys fees to a prevaitmg party Judgment upon the award renbored by the Arb~tretar(s) may be entered m any
court hewog jurisdiction thereof
The law of the sitce of the land shall apply to an arbltrabon under the Titld Insurance Arbitrshon Rules
A copy of the Rules may be obtained from the Company upon request
15 LIABILITY LIMITED TO TRIB POLICY POLICY ENTIRti CONTRACT
(a) Thldpohcytogetherwithallendorsemeofs riany attachedheretobythec~mpanyistheent~rep~myandcontractbetweanthe~nsumdandtheC~mpany In ~ntarpreting soy
prows~on of th~s policy this policy shall be construed as a whole
(b) Any cimm of lose or damage whether or not based on negligence and which ance out Gl the status of the tdle to the estate or mtarss{ covered hereby or by any acSon
asserting such claim shall be rectitcted to this policy
(c} NO amendment of or endorsement to this policy can be made except by a wrdlng endorsed hereon or aitached hereto s~gned by e~ther Ihs Pres~tterb a V~ce President the
Ssomtary and Assistant Secretary or vahdedng officer or authorized signatory of the Company
16 SEVERABIUTY
In the event any prowsldn of the policy Is held invalid or unenforceable under applicable law the policy shall bo deemed not to mclube that provision and all other prows~ons shall
remain m tull forCe and effect
17 NOllCES, WHERS StiNT
All nogces required to be given the Company and any statement in wntlog requlrad ta be furmshed the Company shall mclube the number of tins policy and shall be addressed to
the Company at t113 N W Loop 410 Suite 100 San Antonio Texas 78216
COMPshI'A~ui~NaOn~ dCiEiputa arise apou your premium or about sea m the you have flied contact the agent o wr ti to the Company that Issued the policy If the problem ta I
net mIofved, you elIO may write the TexaI Department of Iniuraace, P O Box 149091, Auitth, TX 78714,'90~1, Fax No (812) 475-1771 This notlr, e of complaint proe~Jure is I !
CONDITIONS AND STIPULATIONS Continued
4 DEFENSE AND PROSECUTION OF ACTIONS DUTY OF INSURED CLAIMANT TO COOPERATE
re) Upon written request by the insured and subject to the ophons contained ~n Section § of these Coned~ons and Stlpulahons the Company at its own cost and without
unreasonable delay shall prowde for lhe defense of an insured ,n litigation in which any th*rd pady asseds a claim adverse to the htle or interest as insured but only a~ to
those staled causes of acnon alleging a defect hen e e~cumbrance or other matter ~nsured against by this policy The Company shall have the nght to select counsel of its
choice (subject to the rlghl of the insured to object tot reasonable cause) to represent the insured as to those stated causes of action add shall not be liable for and will not
pay the fees of any ether counse~ The Company w~'l not pay any fees costs or expenses incurred by the insured in the defense of those causes of achon that allege
matters not insured against by th~s ool~cy
(b) The Compan~ shell have the nght a ~ts own cost ID ~nsctute and prosecute any achon or proceeding or to do any other act that in its opinion may be necessary or
desirable to establish ~he t~tle to me estate or interest as insured or to prevent or reduce loss or damage to the ~nsured The Company may take any appropriate action
under the terms of this policy whether or not it shal~ be liable hereunder and shall net thereby concede liability or waive any provision of this policy If the Ccmpa~ly shall
exercise its rights under this paragraph ~t shall do so d~l~gently
(C} Whenever the Company shall have brought an action or ~nterposed a defense as required or pe,mlttsd by the prowslons of this Pct~cy the Company may pursue any
IlhgatlOn to final determine ion by a coud of cor~ potent junsd~ch0n a~d expressly reserves the right ~n its sole discretion to appeal from any adverse judgment or order
rd) Iq all cases where th~s pel~cy permit, er requires the Company ID prosecute or prowde for the defense of any action or proceeding the ~nsured shall secure to the
Company the r~ght to so prosecute or prowde defense m the acnon or proceeding and all appeals therein and permit the Company to uae at its opedn the name Of the
~nsured for this purpose Whenever requested by the Company the insured at the Companys expense shall g~ve the Company all reasonable a~d (i) in any action or
proceeding secunng evidence obtaining w,tnesses prosecuting or defending the achon or proceeding or eflechng sedlement and (ii) ~n any other lawful act that in the
opinion of the Company may be necessary or pes~rable to eslabhsh the title to the estate or icterest as insured If the Company Is prejudiced by the failure of the insured to
f~rnled the required cooperahon the Company s obhgatlons to me ~nsured under the policy shall terminate Including any liability or obllgahon to delend prosecute o¢
continue any litigation with regard ~o the matter or matters requlnng such cooperanon
5 PROOF OF LOSE OR DAMAGE
In oddledn to and aher the nohces required under SecPon 3 of these CondlPons and St~pulaPons have been prowded the Company a proof of Ices or damage signed and sworn
to by the Insured claimant shell be furnished to the Company within 91 days after the insured claimant shall ascertain the facts glvir~g nsc to the loss or damage The proof of
loss or damage shall describe the defect in or lion or encumbral~ce on the title or other matter insured against by this policy that constitutes the basis of loss or damage and
shall state to the extent possible the bas~s of calculahng the amount of the loss or damage If the Company ~s prejudiced by the failure of the ~nsured claimant ID provide the
required proof ol loss or damage the Company s obhgat~ons to the insured under the policy shall termlnats including any I~sblllty or obligation to defend prosecute or continue
any Ilhgahon with regard to the mader or matters redu~nng such proof of loss or damage
In addition the insured clarmant may ~edsonably be redu~red to submit to examination under oath by any authorized representstlve of the Company and shall produce for
exammabon inspecpon and copying at Sdch reasonable Pme~ and p~aces as may be designated by any authorized representative of the Company all records books ledgers
checks correspondence and memoranda whether bearing a date before or after Date of Policy which reasonably pertain to the loss or damage Fudher if requested by any
authorized representative of the Company the insured claimant shall grect its permission in wnhng for any authorized represerttatlve of the Company to examine inspect add
copy all records books ledgers checks correspondence and memoranda ~n the custody or comrol of a third pady which reasonably pertain to the loss or damage All
~nformahon designated as conhdenhal by me ~nsured claimant prowped ts the Company pursuant to this Sechon shall not be d~sclosed to others unless in the reasonable
judgment of the Company ~t ~s necessary ~n tile edmlnlstranon of the claim Failure of the ~naured claimant ~o submit for examination under oath produce other reasonably
requested information or grant permission to secure reasonably necessary ~nformatlon from third parties as required in this paragraph shall terminate any liability of the
Company under this pehcy as to that claim
6 OPTIONS TO PAY OR OTHERWISE SETTLE CLAIMS TERMINATION OF LIABILITY
In case of a claim under this policy the Company shall have the follow~ng aded~onal options
(a) TO Pay or Tender Payment of the Amount of Insurance
TO pay or tender payment of the amount ct ~nsurance under mis policy togethel with any costs attorneys fees and expenses recurred by the insured claimant which were
authorized by the Company up to the t~me of payment or tender ct payment and which the Company ~s obligated to pay
Upon the exercise by the Company of th~s oppen nil I~ab~llty and obf~ganons to the ~nsured under th~s policy other than to make the payment required shall terminate
including any liability or obl~gahon to defend prosecute or continue any Id~gaedn and the policy shall be surrendered to the Company for cancellation
(b) To Pay or Othetwtse Settle With Part,es Other than the Insured or With the Insured Claimant
(i) to pay or otherWiSe settle with other pad,es lot or in the name of an ~csured claimant any claim insured against under this policy together with any costs afforflays
fees and expense~ incurred by the ~nsured claimant which were authorized by the Company up to the time of payment and which the Company is obligated to pay or
(il} to pay or othe~wse safilo with the insured claimant the loss or damage prevlped for under ~hlS policy ~ogether w~th any costs a~orneys fees and expenses incurred
by the insured claimant whmh were autpenzod by the Company up to the [~me of paymect and which the Company is obltgatsd to pay
Upon the exerc~,e by lhe Company el e~ther of me options prowded lot ~n paragraphs (b)(r) or (~l) the Company s obligations to the insured under th~s policy for the cla~med toss
or damage other than the payments required to be made shall terminate including any hablllty or obligation to defend prosecute or continue any Iltlgahon
7 DETERMINATION, EXTENT OF LIABILITY AND COINSURANCE
This policy is a contract of ~ndemn~ty against actual monetary loss or damage sustained or incurred by the insured cJalmant who has suffered loss or damage by reason of
matters insured against by this policy end only to the extent hereto pescrlped
(a) The liability of the Company under th~s policy shall not exceed the least of
(~) the Amount of Insurance stated in Schedule A
(Il) the d~fference between the value ef the insured estate or ~nterest a insllred and the value of the Insured estate or interest subject to the defect I~en or encumbrance
insured against by ~h~s pohcy at the data [he insured cla~man~ ~s required to furnish to Company a proof of loss or damage in accordance with Sechon 5 of these
Cond~hons af~d Stlpulanons
(b) In the event the Amount of Insurance stated m Schedule A a[ the Dam of Policy ~s less than 80 percenl of the value of the insured estate or interest or the full cons~derahon
pa~d for the land whichever ~s less or rf subsequent to the Date of Pahcy an Improvement ~S erected on the land which increases the value of the ~nsured estate or interest
by as least 20 percent over the Amount of Insurance stated in Schedule A then this Policy Is sublect to the following
(I) where no subsequem ~mprovement ha5 been made as to any partial loss the Company edall only pay the loss pro rata in the proportion that the amount of rnsurance
at Date of Pct~cy bears to the total value of the insured estate or nterest at Date of Policy or
(Il) where a subsequent ~mprovement has been made as 1¢ any padlal loss the Company shall only pay the loss pro rata in the propemen that 120 percent of the
Amount of insurance stated in Sche¢ule A bears ~o the eJm of ~he Amoum of Insurance stated in Schedule A and the amount expended for the improvement
The prows~ons of this paragraph shall not apply to costs attorneys fees and expe~ases lot which the Company ~s Imble under th~s pohcy and shall onry apply to that podlon of any
loss whled exceeds n the aggregate 10 percent of the A'nount Of Insurance ~tamd in Schedule A
(c) The Company will pay octy thcse costs atlorneys ee~ and expenses incurred In accordance with Sechon 4 of these Conditions and Stipulations
8 APPORTIONMENT
If the land described ~n Schedure A cons~cts of two or more parcels thai are ~ot used as a single site end a ross ~s established affecting one or more of the parcels but not all the
loss shall be computed and settled on a pro rata bas~s as if the amount of ~nsurance under this policy was d~wded pro rata as to the value on Date of Policy of each separate
parcel to the whole exclusive ol any ~mprovements made subsequent to Da~e of Policy unless a Itablhty or value has otherwise been agreed upon as to each parcel by the
Company and the insured at the ~lme Of the issuance of this pohcy and shown Dy an express ststement or by an endorsement edached to this policy
9 LIMITATION OF LIABILITY
(a) If the Company estabhshes the I~tle erremo~'~s[pealleged defect hen or encumbrance or cures the lack of a r~ght of access to or lrom the land alias insured ortakes
achon in accordance with Section 3 or SeE, rich 6 in a reasonab y d~l~gant manner by any method including Iitlgahon and ~he completion of any appeals therefrom it shall
have fully performed ~ts obligations ~,vllh respect 1o that matter and shall not be liable for any loss or damage caused thereby
(b) In the event of any hhgat~on ~nclud~ng ~t~gat~on by the Company or w~th the Company s consent the Company shall have no liability far loss or damage unhl there has been
a hnal demrmmatlon by a coud of competent junsdlCPon and d~spoe~on of all appeals therefrom adverse to the title as msursd
(c) The Company shall not be hable for loss or damage to any nsured for I~ablllty voluntanly assumed by [he ~nsured rn smtlmg any clarm or suit without the prior wrrttsn consent
of the Company
10 REDUCTION OF INSURANCE REDUCTION OR TERMINATION OF LIABILITY
All payments under td~s policy except payments made for costs attorneys fees a'~d expenses shall reduce the amount of the insurance pro tanto
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