1995-262J:\~PDOCS\ORD\SULLIVAN,ORD
ORDINANCE NO.~
AN ORDINANCE AUTHORIZING THE ACTING CITY MANAGER TO EXECUTE A REAL
ESTATE CONTRACT WITH ROGER C. SULLIVAN AND ROGER C. SULLIVAN
COMPANY, A TEXAS CORPORATION FOR THE PURCHASE OF APPROXIMATELY 134
ACRES OF L~ND FOR FUTURE EXPANSION OF THE CITY OF DENTON LANDFILL;
AUTHORIZING THE EXPENDITURE OF FUNDS THEREFORE; AND DECLARING AN
EFFECTIVE DATE.
THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS:
SECTION I. That the Acting city Manager is hereby authorized
to execute a Real Estate Contract with Roger C. Sullivan and Roger
C. Sullivan Company, a Texas corporation for the purchase of
approximately 134 acres of land for the future expansion of the
city of Denton landfill, a copy of which is attached hereto and
incorporated by reference herein.
SECTION II. That the city Council hereby authorizes the expen-
diture of funds in the manner and amount as specified in the
agreement.
SECTION III. That this ordinance shall become effective imme-
diately upon its passage and approval.
PASSED AND APPROVED this the/~day of~~__, 19 ~
BOB CASTLEBERR~- MAT~
ATTEST:
JENNIFER WALTERS, CITY SECRETARY
APPROVED AS TO LEGAL FORM:
HERBERT L. PROUTY, CITY ATTORNEY
Exhibit B
REAL ESTATE CONTRACT
STATE OF TEXAS
COUNTY OF DENTON
THIS CONTRACT OF SALE is made byand between ROGER C. SULLIVAN.
INDIVIDUALLY AND ROGER C. SULLIVAN COMPANY, a Texas Corporation
(hereinafter referred to as ,,Seller") and CITY OF DENTON, TEXAS, a
home rule municipality, of Denton, Denton County, Texas, (herein-
after 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 containing ap-
proximately 134. more of less acres of land situated in Denton
County, Texas, being more particularly described in Exhibit A at-
tached hereto and incorporated herein by reference for all purposes
together with all and singular the rights and appurtenances per-
taining to the property, including any right, title and interest of
Seller in and to adjacent streets, alleys or rights-of-way (all of
such real property, rights, and appurtenances being hereinafter
referred to as the ,,Property"), together with any improvements,
fixtures, and personal property situated on and attached to the
Property, for the consideration and upon and subject to the terms,
provisions, and conditions hereinafter set forth.
PURCHASE PRICE
1. Amount of Purchase Price. The purchase price for the Prop-
erty shall be the sum of ONE MILLION FIVE THOUSAND FIVE HUNDRED
~00 Dollars ($1,005,500.00 ).
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 trans-
actions contemplated hereby are subject to the satisfaction of each
of the following conditions any of which may be waived in whole or
in part by Purchaser at or prior to the closing.
1. Preliminary Title Report. Within twenty (20) days after
the date hereof, Seller, at Seller's sole cost and expense, shall
have caused the Title Company (hereinafter defined) to issue a
preliminary title report (the "Title Report") accompanied by copies
of all recorded documents relating to easements, rights-of-way,
etc., affecting the Property. Purchaser shall give Seller written
notice on or before the expiration of ten (10) days after Purchaser
receives the Title Report that the condition of title as set forth
in the title binder is or is not satisfactory, and in the event
Purchaser states the condition is not satisfactory, Seller shall,
at Seller's option, promptly undertake to eliminate or modify all
unacceptable matters to the reasonable satisfaction of Purchaser.
In the event Seller is unable to do so within ten (10) days after
receipt of written notice, this Agreement shall thereupon be null
and void for all purposes and the Escrow Deposit shall be forthwith
returned by the Title Company to Purchaser; otherwise, this condi-
tion shall be deemed to be acceptable and any objection 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
original of this Agreement, Seller shall within twenty (20) days
from the date hereof, at Purchaser's sole cost and expense, deliver
to Purchaser a current survey of the Property, prepared by a duly
licensed Texas land surveyor acceptable to Purchaser. The survey
shall be staked on the ground, and shall show the location of all
improvements, highways, streets, roads, railroads, rivers, creeks,
or other water courses, fences, easements, and rights-of-way on or
adjacent to the Property, if any, and shall contain the surveyor's
certification that there are no encroachments on the Property and
shall set forth the number of total acres comprising the Property,
together with a metes and bounds description thereof.
Purchaser will have ten (10) days after receipt of the survey
to review and approve the survey. In the event the survey is un-
acceptable, then Purchaser shall within the ten (10) day period,
give Seller written notice of this fact. Seller shall, at Seller's
option, promptly undertake to eliminate or modify the unacceptable
portions of the survey to the reasonable satisfaction of Purchaser.
In the event Seller is unable to do so within ten (10) days after
receipt of written notice, Purchaser may terminate this Agreement,
and the Agreement shall thereupon be null and void for all purposes
and the Escrow Deposit shall be returned by the Title Company to
Purchaser. Purchaser's failure to give Seller this written notice
shall be deemed to be Purchaser's acceptance of the survey.
3. Seller's Compliance. Seller shall have performed, ob-
served, and complied with all of the covenants, agreements, and
conditions required by this Agreement to be performed, observed,
and complied with by Seller prior to or as of the closing.
REPRESENTATIONS AND WARRANTIES OF SELLER
Seller hereby represents and warrants to Purchaser as follows,
which representations and warranties shall be deemed made by Seller
Page 2
to Purchaser also as of the closing date:
1. There are no parties in possession of any portion of the
Property as lessees, tenants at sufferance, or trespassers;
2. Except for the prior actions of Purchaser, there is no
pending or threatened condemnation or similar proceeding or as-
sessment affecting the Property, or any part thereof, nor to the
best knowledge and belief of Seller is any such proceeding or
assessment contemplated by any governmental authority;
3. Seller has complied with all applicable laws, ordinance,
regulations, statutes, rules and restrictions relating to the Prop-
erty, or any part thereof;
4. 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. In the event
any such toxic or hazardous wastes or materials are found upon the
Property, Seller shall be responsible for the expense of removal of
these wastes or materials upon receipt of written notice of the
presence of these wastes or materials or Seller may terminate this
contract and return to Purchaser the compensation paid by Purchaser
to Seller.
CLOSING
The closing shall be held at the office of Safeco Land Title,
625 Dallas Drive, Denton, Texas, on or before
or at such time, date, and place as Seller and Purchaser may mutu-
ally 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 Purchaser a duly executed and acknowledged
General Warranty Deed conveying good and marketable title in fee
simple to all of the Property, free and clear of any and all liens,
encumbrances, conditions, easements, 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 here-
of; and
Page 3
3. Any exceptions approved by Purchaser
in writing.
B. Deliver to Purchaser a Texas Owner's Title Policy at
Seller's sole expense, issued by _Safeco Land Title ,
(the "Title Company") in Purchaser's favor in the full amount of
the purchase price, insuring Purchaser's fee simple title to the
Property subject only to those title exceptions listed in CLOSING
REQUIREMENTS hereof, such other exceptions as may be approved in
writing by Purchaser, and the standard printed exceptions contained
in,the usual form of Texas Owner's Title Policy, provided, however:
1. The boundary and survey exceptions
shall be deleted if required by Purchaser
and if so required, the costs associated
with same shall be borne by Purchaser;
2. The exception as to restrictive cove-
nants shall be endorsed "None of Record";
3. The exception as to the lien 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.
2. Purchaser's Requirements. Purchaser shall pay the full
cash purchase price to Seller at Closing in immediately available
funds.
3. Closin Costs. Through the date of Closing, Purchaser
shall only be responsible for the payment of taxes assessed by the
City of Denton and, Seller shall pay all taxes assessed by any
other tax jurisdiction through the date of Closing. Any taxes
imposed, assessed or arising because of a change of use of the
Property after closing by Purchaser shall be the responsibility of
Purchaser. In particular, seller shall not be responsible for
rollback tax liability to any tax jurisdiction resulting from
Purchaser's change of the use of the property from agricultural
uses to sanitary landfill uses.
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, however, Pur-
chaser's share of such costs and expenses shall in no event exceed
Five Hundred and No/100 Dollars ($ 500.00 ).
Page 4
REAL ESTATE COMMISSION
All real estate commissions occasioned by the consummation of
this Agreement shall be the sole responsibility of Seller, and
Seller agrees to indemnify and hold harmless Purchaser from any and
all claims for these commissions.
BREACH BY SELLER
In the event Seller shall fail to fully and timely perform any
of its obligations hereunder or shall fail to consummate the sale
of the Property except in the event of Purchaser's default, Pur-
chaser may either enforce specific performance of this Agreement or
terminate this Agreement.
BREACH BY PURCHASER
In the event Purchaser should fail to consummate the purchase
of the Property, the conditions to Purchaser's obligations set
forth in the Section entitled pURCHASER'S OBLIGATIONS having been
satisfied and Purchaser being in default Seller may either enforce
specific performance of this Agreement, or terminate this Agree-
ment.
MISCELLANEOUS
1. AssiGnment of Agreement. This Agreement may not be as-
signed by Purchaser without the express written consent of Seller.
2. Survival of Covenants. Any of the representations, war-
ranties, covenants, and agreements of the parties shall survive the
closing and shall not be merged therein.
3. Notice. Any notice required or permitted to be delivered
hereunder shall be deemed received when sent by United States mail,
postage prepaid, certified mail, return receipt requested, address-
ed 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 provi-
sions contained in this Agreement shall for any reason be held to
Page 5
be invalid, illegal, or unenforceable in any respect, said inval-
idity, illegality, or unenforceability shall not affect any other
provision hereof, and this Agreement shall be construed as if the
invalid, illegal, or unenforceable provision had never been con-
tained herein.
7. Prior A~reements Supersede~. 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. ~9~. Time is of the essence in this Agreement.
9. Gender. Words of any gender used in this Agreement shall
be held and construed to include any other gender, and words in the
singular number shall be held to include the plural, and vice
versa, unless the context requires otherwise.
10. Memorandum of Contract. Upon request of either party,
both parties shall promptly execute a memorandum of this Agreement
suitable for filing of record.
11. ~' In accordance with. the requirements of.t~
Texas Real Estate License Act, Purchaser is hereby advised that l~
should be furnished with or obtain a policy of title insurance or
Purchaser should have the abstract covering the Property examined
by an attorney of Purchaser's own selection.
12. ~. In the event a fully executed copy of this
Agreement has not been returned to Purchaser within five (5) days
after Purchaser executes this Agreement and delivers same to Sel-
ler, Purchaser shall have the right to terminate this Agreement
upon written notice to Seller.
DATED this /~ day o~, 19~.
SELLER
ROGER C. SULLIVAN COMPANY,
a Texas Corporation
BY:
Roger C. sullivan, President
Roger C. SulliYaD~ In~ividRa%ly
annas Agent andA~0rney-~n-rac~ T0r
Roger C. Sullivan, Jr., Gregory M. Sullivan,
Timothy Iq. Sullivan and Mary Iq. Sullivan
Page 6
30191.MH
~a£e~o-Denton
STATE OF TEXAS
KNOW ALL MEN BY THESE PRESENTS:
COUNTY OF DENTON
THAT the ROGER C. SULLIVAN COMPANY, acting herein by and through its duly
authorized officer, Roger C. Sullivan, whose address if 5949 Sherry Lane, Suite l lS, Dallas,
Texas, 75225; ROGER C. SULLIVAN, Individually, a married man not joined by my wife, as
the property herein conveyed constitutes no part of our business or residential homestead, and
ROGER C. SULLIVAN, Agent and Attorney in Fact for Roger C. Sullivan, Jr. whose address
is 4930 Sedgwick St., N. W. Washington, DC 20016, District of Columbia, Gregory M.
Sullivan, 902 East 13th St., Delta, Colorado, 81416,. County, Colorado; Timothy
H. Sullivan, c/o Augusta Proll, 517 Geneseo, San Antonio, Texas, 78209, and Mary M.
Sullivan, 4848 Pin Oak Park #1007, Houston, Texas, 77018, Harris County, Texas, in
consideration of the sum of TEN AND NO/100 ($10.00) DOLLARS, to said Grantors in hand
paid by the Grantee herein named, the receipt of which is hereby acknowledged, have
GRANTED, SOLD AND CONVEYED and by these presents do GRANT, SELL AND
CONVEY unto CITY OF DENTON, a home rule municipality, of Denton County, Texas,
whose address is 215 E. McKinney, Denton, Texas, 76201, to all that certain property situated
in Denton County, Texas, described as follows, to-wit:
Being all that certain lot, tract or parcel of land situated in the G. Walker Survey,
Abstract No. 1330, Denton County, Texas, and being the same called 144.6 acre tract
conveyed by Henry Wilds and wife, Julius Opitz on September 27, 1909, as shown of
record in Volume 114, Page 84, Deed Record, Denton County, Texas; and being more
particularly described as follows:
BEGINNING at the Southeast corner of the above mentioned 144.6 acre tract;
THENCE North 86 deg. 36 min. 24 sec. West, along and near a fence part of the way
and along the middle of a public road, 3505.55 feet to a point in the right-of-way of
Mayhill Road, point also being on the West boundary line of said Walker survey;
THENCE North 03 deg. 36' min. 50 sec. East, in said right of way of said Mayhill Road
and along the West boundary line of said Walker Survey, 1797.22 feet to a point for
corner;
THENCE South 86 deg: 28 min. 30 sec. East, along or near a fence 3494.44 feet to a
fence corner;
THENCE South 03 deg. 15 min. 32 sec. West, along or near a fence, 1789.19 feet to
the PLACE OF BEGINNING.
SAVE AND EXCEPT THE FOLLOWING TRACT OF LAND
Being a tract of land situated in the G. WALKER SURVEY, ABSTRACT NO. 1330,
Denton County, Texas, and being a part of the tract described in the Deed from Gary
Hancock to Roger C. Sullivan and Robert H. Heiser recorded in Volume 970, Page 88,
Deed Records, Denton County, Texas; the subject tract being more particularly described
as follows:
BEGINNING for the Southwest corner of the tract being described herein, at an 1/2 inch
iron rod set in Edwards Road in the occupied South line of the Sullivan and Heiser tract
South 88 deg. 29 min. 00 sec. East, a distance of 707.75 feet from the apparent
Southwest comer thereof and also being in North line of Allan Estate Mobile Home Park,
as shown by the Plat thereof recorded in Cabinet C, Page 383, Plat Records, Denton
County, Texas;
THENCE North 01 deg. 31 min. 00 sec. East, passing at 15.0 feet a 1/2 inch iron rod
set under a gate in a fence along the North side of Edwards Road and continuing in al
a total distance of 660.00 feet to a 1/2 inch iron road set for the Northeast comer of the
herein described tract;
THENCE South 88 deg. 29 min. 00 sec. East, parallel with the South line of Sullivan
and Heiser tract, a distance of 660.00 feet to a I/2 inch iron rod set for the Northeast
comer of the herein described tract;
THENCE South 01 deg. 31 min. 00 sec. West, a distance of 660.00 feet to a 1/2 inch
iron rod set for the Southeast corner of the herein described tract in the South line of the
Sullivan and Heiser tract in the remains of an old fence line about 12 feet South of a
standing fence;
THENCE North 88 deg. 29 min. 00 sec. West, with the South line of the Sullivan and
Heiser tract along Edwards Road part of the way, a distance of 660.00 feet to the PLACE
OF BEGINNING.
THIS CONVEYANCE IS MADE AND ACCEPTED SUBJECT to the following:
1. Easement granted by L. W. Opitz to Brazos River Transmission Electric
Cooperative, Inc., dated June 3, 1947, filed October 24, 1949, recorded in
Volume 357, Page 62, Deed Records, Denton County, Texas.
2. Easement granted by Mrs. L. W. Opitz to Denton County Electric Cooperative,
Inc., dated November 26, 1948, filed March 16, 1949, recorded in Volume 336,
Page 591, Deed Records, Denton County, Texas.
3. Easement granted by Mrs. L. W. Opitz to City of Denton, Texas, dated
December 19, 1960, filed February 3, 196l, recorded in Volume 464, Page 191,
Deed Records, Denton County, Texas.
4. Easement granted by Roger C. Sullivan, Individually and as Attorney-in-Fact for
Roger C. Sullivan, Jr., Gregory M. Sullivan, Timothy H. Sullivan and Mary M.
Sullivan to City of Denton, Texas, dated January 27, 1982, filed January 29,
1982, recorded in Volume 1123, Page 955, Deed Records, Denton County,
Texas.
5. Terms and Provisions of Agreement executed by and between Roger C. Sullivan
and City of Denton, dated April 7, 1993, filed November 10, 1994, recorded in
the Official Public Records of Real Property, Denton County, Texas, as County
Clerk's Instrument No. 94-R0085893.
6. All visible and apparent easements and all underground easements, the existence
of which may arise by virtue of unrecorded grant or by use.
7. Any portion of the subject property lying within the bounds of any public or
private road.
8. ' Rights of Parties in Possession.
TO HAVE AND TO HOLD the said premises, together with all rights, hereditaments and
appurtenances thereto belonging, unto the said Grantee above named, its successors and assigns
forever. And the undersigned hereby binds its successors and assigns, myself, my heirs,
executors and administrators to WARRANT AND FOREVER DEFEND the title to said property
unto the said Grantee above named, its successors and assigns, against every person whomsoever
lawfully claiming or to claim the same, or any part hereof.
EXECUTED this 2nd day of January, 1996.
R~E~ C. SULLIVANTMPANY
?Roger COSullivan, I'4esi~,ent
· Roger ~ Sullivan, Individually and as Agent
and Attorney in Fact for Roger C. Sullivan,
Jr., Gregory M. Sullivan, Timothy H.
Sullivan and Mary M. Sullivan
STATE OF TEXAS
COUNTY OF DALLAS
This instrument was acknowledged before me on day of January, 1996, by
Roger C. Sullivan, President of Roger C. Sullivan Company on behalf of the corporation and
J-~LAURA LOUISE VAND£RPOOLJj
Notary Public
,,a,oo, To,a, i
, -- Printed Name:
My Commission Expires:
STATE OF TE~S
COUNTY OF DALLAS
This ins~ment was ac~owledged before me on ~ day of Janua~, 1996 by
Roger C. Sullivan, Individually aM as Agent and A~omey in Fact for Roger C. Sullivan, Jr.,
Grego~ M. Sullivan, Timo~y H. Sullivan and M~ ] ~Sullivan, in ~e capaci~ herein stated.
J [~ NotO~Y Public J
State of Texas s t~ ~blic ~ ~
~ Prin Led Name:
My Com~ssion Exp~es:
Return to:
The City of Denton
215 E. McKinney St.
Denton, TX 76202
Attn: Roger Wilkinson
J/~N 0
~. ~ t~
Filed for Reco-~d i
DENTON COUNTy~ TX
~ON[?ABLE l'I~
CLERK /COUNTY
On Jan 83 1996 At 3:38pm
Doo/Tyoe · 0008c9
Record~ ~ ~ WD
Doc/~g~ t ~: 1 ~. 00
~ecei6t ~. G. 00
Deputy ~'~ 'CASSy
05~'13'~96P12:41 RCVD
SAFECO LAND TITLE OF DENTON COUNTY
930 WESTMAIN STREET, LEWISVILLE, TX 75067
214-436-4573
City of Denton
215 E, McKinney
Denton, Texas 76201
Dear Sirs:
In connection with the transaction we recently closed for you, we are pleased to enclose your Owner's
Policy of Title Insurance. Your Deed has been filed for record with the County Clerk and will be
returned to you directly from that office.
A special file has been set up which will enable us to offer you excellent service in any future
transaction regarding this property. In the event you desire to sell, improve or refinance in the future,
contact us immediately and we will expedite handling your title insurance needs.
We want to take this opportunity to thank you for your business and hope that you will call on us if
we may be of any further service to you in the future.
Sincerely,
SAFECO LAND TITLE OF DENTON COUNTY
Policy Department
Encls.
SECURIT, Y UNION
~ TiQe Insurance Company
OWNER POLICY OF TITLE INSURANCE
44 0969 100 8352
SECURITY UNION TITLE INSURANCE COMPANY
SUBJECT TO THE EXCLUSIONS FROM COVERAGE, THE EXCEPTIONS FROM COVERAGE CONTAINED IN
SCHEDULE B AND THE COND TONS AND STIPULAT ONS, Security Union Title Insurance Company, a California
corporat on, herein called the Company, nsures, as of Date of Policy shown in Schedule A, against loss or damage, not
exceeding the Amount of Insurance stated in Schedule A, sustained or incurred by the insured by reason of
1. Title to the estate or interest described in Schedule A being vested other than as stated therein;
2. Any defect in or lien or encumbrance on the title;
3. Any statutory or const tutional mechanic's, contractor's, or materialman's lien for labor or
material having its inception on or before Date of Policy;
4. Lack of a right of access to and from the land;
5. Lack of a good and indefeasible title.
The Company a so will pay the costs attorneys' fges and expenses incurred in defense of the title, as insured, but
only to the extent provided in the Conditions and Stipulat ons.
In Witness Hereof, SECUR TY UNION T TLE INSURANCE COMPANY has caused this policy to be executed by its
President under the seal of the Company, but this policy is to be valid on y when it bears an authorized countersignature,
as of the date set forth in Schedule A.
ISSUED BY:
SAFECO Land Title of Denton County
625 Dallas Drive, # 100 SECURITY UNION TITLE INSURANCE COMPANY
(817) 566-5263
President
~--~ Authori'z~d Signato y
OWNER POLICY OF TITLE INSURANCE
Reorder Form No. 12655 (Rev. 1/93)
EXCLUSIONS FROM COVERAGE
The foll0wing ms,tats are expressly excluded from the coverage of this policy and the Company will nol pay loss or damage, costs, a~orneys' fees or expenses which adse by reason of:
1. (a) Any law, ordinance or governmental regulation (including but not limited to building and zoning laws, ordinances, or regulations) restricting, regulating, prohibiting or relating to ¢) the
occupancy, use, or enjoyment olthe ~and; (ii) the character, dimensions or location of any improvement now or hereafter erected on the rand; (iii) a separation in ownership or a change in the
dimensions or area of the land or any parcel of which the land is o was a part o (v) environmental protection or the effect of any violalion of hese aws ordinances or governmental regula ions,
except to the extent that a notice ct he enfo cement thereof or a no ce o a defect, lien or encumbrance resulting rom a violation or alleged violation affecting the land has been recorded in
the public records at Date of Policy,
{b) Any governmental police power not excluded by (a) above, except to the extentthat a notice of the exercise thereof or a notice of a defect, lien or encumbrance resulting from a violation
or alleged violation affecting the land has been recorded in the public records at Date of Policy.
2. Rights of eminent domain unless notice of the exercise thereof has been recorded in the public records at Date of Policy, but not excluding from coverage any taking that has occurred prior
to Date of Policy which would be binding on the rights of a purchaser for va~ue without knowledge,
3, Defects, liens, encumbrances, adverse claims or other matters:
(a) created, suffered, assumed or agreed to by the insured claimant;
(b) not known to the Company, not recorded in the public records at Date of Policy, but known to the insured claimant and not disclosed in writing to the Company by the insured claimant
prior to the date the insured claimant became an insured under this policy;
(c) resulting in no loss or damage to the insured claimant;
(d) attaching or created subsequent to Date of Policy;
(e) resulting in loss or damage that would not have been sustained if the insured claimant had paid value for the estate or interest insured by this policy.
4. The refusal of any person to purchase, lease or lend money on the estate or interest covered hereby in the land described in Schedule A because of unmarketability of the title.
5. Any claim which arises out of the transaction vesting in the person named n pa agraph 3 of Schedule A the es a e or nte est insured by h s po cy, by eason of the opera ion oede a
bankruptcy, state insolvency orotherstateorfedera ceditors'rightslaws ha s based on e the )thetransactioncreatingtheestateorinterestoftheinsuredby hsPolicybeingdeemeda
fraudulent conveyance or fraudulent transfer or a voidable distribu ion or vo dab e dividend, (ii) the subordination or recharacterization of the estate or interest being insured by this Policy as a
result of the application of the doctrine of equitable subordination or {iii) the transaction creating the estate or interest insured by this Policy being deemed a preferentialtransfer except where
the preferential transfer results from the failu re of the Company or its issuing agent to timely file for record the i nstru ment of transfer to the I nsu red after delivery or the failure of such recordation
to impart notice to a purchaser for value or a judgement or lien creditor,
CONDITIONS AND STIPULATIONS
1. DEFINITION OF TERMS
The following terms when used in this po cy mean
a "insured": the insured named in Schedu e A and, subjec o any r ghts or de enses the Company would have had against the named insured, those who succeed to the
interest of the named insured by opera on of law as distinguished from purchase including, but not limitedto, heirs, distributees, devices survivors, personal rep esentat vas nex
of kin, or corporate, partnership or fiduciary successo s and spedfica y, w hout imitation, the following: '
i the successors in interest to a corpo at on resulting from merge or conso dot on or the distribution of the assets of the corporation upon partial or complete liquidation'
{ii the partnership successors in in eras o a general or lira edpartnership which dissolves but does not terminate;
¢ii thesuccessorsininteresttoagenera or m edpartnershipresu~tingfr~mthedlsribut~n~ftheassets~fthegenera~r~imitedpartnershipup~npartia~rc~mp~ete
liquida ion;
(iv) the successors in interest to a oint venture resulting from he d sbu on o the assets of he jo nt venture upon partial or complete liquidation
(v the successor or substitute trustee s of a trustee named n a wri en ust nstrument or
vi) the successors in in erest to a trustee or trust resul lng from the d stribution of all or part of the assets of the trust to the beneficiaftes thereof.
(b) ~nsured cla~manr': an ~nsured cla~ming loss or damage
(c) "knowledge" or "known" actual knowledge no const uctive know edge or no ice that may be imputed to an insured by reason of the ubric records as defined in th~s ol~c
or any other records which report cons rucgve not ce of matters affecting the land. P ' p ' y
(d) 'land": the land descnbed or referred to in Schedu e A, and 'mprovements affixed thereto that by law constitute real proper~y. The term land does not include any property
beyond the lines of the area described or referred to in Schedu e A, no any r g ht, title, interest, estate or ease ment in abutting streets, roads, avenues, alleys, lanes, ways or waterways,
but nothing herein shall modify or limit the ex eno wh ch a r ght of access to and from the land is insured b this i ,
(e) "mortgage": mortgage deed of trus, rus deed. or other securi nsf ument y polcy
(f) "public records": records established under state statutes at Da e oy Po cy for ihe purpose of impeding eons ruc ire not ce of matters relatin to real ro ed o urchasers
~r~`-v?~u?~a`n"dwi!h~'ut~k.n`~w`~`e~ge;~ithre's,pe¢tt~Secti~n1(a)(iv~ftheExc~usi~nsFr~verage "public records" also sha ncudeenvironm~a orolcP, nt~nl~n.Pfil,~rtin,h,~
..~uru~ or me clerk Or [ne unaea b;tates alstnot court for the district in which the land is located. ,- .....................
(g) "access": legal right of access to the land and not the physical condition of access. The coverage provided as to access does not assure the adequacy of access for the
use intended.
2. CONTINUATION OF INSURANCE AFTER CONVEYANCE OF TITLE
Th,e, coverage of this policy shall con inue n orca as, o Date of Policy in favor of an insured only so long as the insured retains an es a e or nterest in the land or holds an
indebtedness secured by a purchase money mortgage given by a purchaser from the insured, or only so long as the insured she I have liability by reason of covenant~ of warranty
made by the insured in any transfer or conveyance of he es a e o neres Th s policy shall not continue in force in favor of any purchaser from he insured of either (i) an esta e
or interest in he land or an ndebtedness secured by a purchase money mortgage given o he insured.
3. NOTICE OF CLAIM TO BE GIVEN BY INSURED CLAIMANT
The insured shall notify the Company promp y n w ng( ) n case o any t gation as set forth in Section 4(a) be ow, o (ii) in case knowledge shall come to an insured hereunder
ofanyclaimoftitleorinterestthatisadverse o he e o heesaeor nterest, as insured, andthatmightcauselossordamageforwhich theCompanymaybeliablebyvrtue
of this policy, If prompt notice shall not be given o he Company., hen as to the insured all liability of the Company she I terminate with regard to the m~tter 6r matters for which
bePr°mptprejudicedn°tice byiS required;the failurePr°vided'and thenhOWeVeronly to thetha extentfai u eoftOtheprejudnO ify heceCOmpany shall in no case prejudice the rights of any insured under this policy unless the Company shall
When, after the date of the policy he nsured no ifies he Company as required herein of a lien, encumbrance adverse claim or o her de act in title to the estate or interest
in the land insured by this policy tho is not excluded or excepted from the coverage of this policy, the Company shall promptty investigate the charge to determ ne whether he
lien, encumbrance, adverse claim or defect is valid and no bar ed by aw or statute. The Company shall notify the insured in w it ng, within a reasonable time, of its determination
a~ to th.e validity or invalidity of the insured's claim or cha ge under the policy, If he Company concludes that he I an, encumbrance, adverse claim or dele
this policy, or was otherwise addressed in the closing o he ransac on n connection wi h which th s policy was issued, the Company shall s ecificall advi~ ?h2~s~roefdthbeY
,r,easons for its detorr0i0.ation. If the Company conclu, des that the lien, encumbrance, adverse claim or de ecl s va id, the Comaanv shalltake en~nf th~4 fnl~lnwinn
l,n.e,.n,.e..cj,s~r..y,.p?.c.e_e.~dlng.s, to clear the Ite,n,,encum.b, ranc, e, ~dverse clair~ or defect from the title to the estate as insured ~) indemnify;' ~e- n~i~-a~-~7~i~'~'~'~ ~'~li'~',l'~i
,.,:.,,.,. p,~,,,,,=.~ v~ app,upr ate p em lum eno cnarges nerefor, ~ssue o he nsu ed c almant or to a subsequen owner, mortgagee or holder of the estate or '~nterest in the I~'~d in~'u~
SCHEDULE A
GF NUMBER: 30191.MH OWNER'S POLICY NUMBER: 44 0969 100 8352
AMOUNT: $ 1,005,500.00 DATE OF POLICY: JANUARY 3, 1996
1. Name of Insured: CITY OF DENTON
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
4. The land referred to in this policy is described as follows:
Being all that certain lot, tract or parcel of laud situated in the G. WALKER SURVEY, ABSTRACT NO.
1330, Denton County, Texas, and being the same called 144.6 acre tract conveyed by Henry Wilds and
wife, Julius Opitz on September 27, 1909, as shown of record in Volume 114, Page 84, Deed Records,
Denton County, Texas; and being more particularly descrbied as follows:
BEGINNING at the Southeast corner of the above mentioned 144.6 acre tract;
THENCE North 86° 36' 24" West, along and near a fence part of the way and along the middle of a public
road, 3505.55 feet to a point in the right of way of Mayhill Road, point also being on tbe West boundary
line of said Walker survey;
THENCE North 03° 36' 50" East, in said right of way of said Mayhill Road and along the West boundary
line of said Walker Survey, 1797.22 feet to a point for corner;
THENCE South 86° 28' 30" East, along or near a fence 3494.44 feet to a fence corner;
THENCE South 03° 15' 32" West, along or near a fence, 1789.19 feet to the PLACE OF BEGINNING.
SAVE AND EXCEPT THE FOLLOWING TRACT OF LAND
Being a tract of land situated in the G. WALKER SURVEY, ABSTRACT NO. 1330, Denton County,
Texas, and being a part of the tract described in the Deed from Gary Hancock to Roger C. Sullivan and
Robert H. Heiser recorded in Volume 970, Page 88, Deed Records, Denton County, Texas; the subject
tract being more particularly described as follows:
BEGINNING for the Southwest corner of the tract being described herein, at an 1/2 inch iron rod set in
Edwards Road in the occupied South line of the Sullivan and Heiser tract South 88° 29' 00" East, a
distance of 707.75 feet from the apparent Southwest corner thereof and also being in North line of Allan
Estate Mobile Home Park, as shown by the Plat thereof recorded in Cabinet C, Page 383, Plat Records,
Denton County, Texas;
SCHEDULE A This Policy valid only if Schedule B is attached.
Owners Policy Texas Form T-1
SCHEDULE A (cont'd)
GF NUMBER: 30191.MH OWNER'S POLICY NUMBER: 44 0969 100 8352
THENCE North 01° 31' 00" East, passing at 15.0 feet a 1/2 inch iron rod set under a gate in a fence along
the North side of Edwards Road and continuing in all a total distance of 660.00 feet to a 1/2 inch iron rod
set for the Northeast corner of the herein described tracat;
THENCE South 88° 29' 00" East, parallel with the South line of Sullivan and Heiser tract, a distance of
660.00 feet to a 1/2 inch iron rod set for the Northeast corner of the herein described tract;
THENCE South 01° 31' 00" West, a distance of 660.00 feet to a 1/2 inch iron rod set for the Southeast
corner of the herein described tract in the South line of the Sullivan and Heiser tract in the remains of an
old fence line about 12 feet South of a standing fence;
THENCE North 88° 29' 00" West, with the South line of the Sullivan and Heiser tract along Edwards
Road part of the way, a distance of 660.00 feet to the PLACE OF BEGINNING.
THE COMPANY DOES NOT REPRESENT THAT THE ABOVE ACREAGE OR SQUARE FOOTAGE
CALCULATIONS ARE CORRECT.
SCHEDULE B
GF NUMBER: 30191.MH OWNER'S POLICY NUMBER: 44 0969 100 8352
EXCEPTIONS FROM COVERAGE
This policy does not insure against loss or damage (and the Company wiJl not pay costs, attorney's fees or expenses) that
arise bv reason of the terms and conditions of the leases or easements insured, if any, shown in Schedule A and the
following matters:
1. "DELETED"
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 Iow 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 199~6 and subsequent years, and
subsequent taxes and assessments by any taxing authority for prior years due to change in land usage and
ownership.
6. The following matters and all terms of the documents creating or offering evidence of the matters.
LIENS.
EXCEPTIONS
Easement granted by L.W. Opitz to Brazos River Transmission Electric Cooperative, Inc., dated June
a. 3, 1947, filed October 24, 1949, recorded in Volume 357, Page 62, Deed Records, Denton County, Texas.
b. Easement granted by Mrs. L.W. Opitz to Denton County Electric Cooperative, Inc., dated November
26, 1948, filed March 16, 1949, recorded in Volume 336, Page 591, Deed Records, Denton County, Texas.
c. Easement granted by Mrs. L.W. Opitz to City of Denton, Texas, dated December 19, 1960, filed
February 3, 1961, recorded in Volume 464, Page 191, Deed Records, Denton Couuty, Texas.
d. Easement granted by Roger C. Sullivan, Individually and as Attorney-In-Fact for Roger C. Sullivan, Jr.,
Gregory M. Sullivan, Timothy H. Sullivan and Mary M. Sullivan to City of Denton, Texas, dated
January 27, 1982, filed January 29, 1982, recorded in Volume 1123, Page 955, Deed Records, Denton
County, Texas.
SCHEDULE B Schedule B of this Policy consists of 2 pages. Page 3
Owners Policy Texas Form T-1
SCHEDULE B (cont'd)
GF NUMBER: 30191.MH OWNER'S POLICY NUMBER: 44 0969 100 8352
Paragraph 6 (conrad)
e. Terms and Provisions of Agreement executed by and between Roger C. Sullivan and City of Denton, dated
April 7, 1993, filed November 10, 1994, recorded in tile Official Public Records of Real Property, Denton
County, Texas, as County Clerk's Instrument No. 94-R0085893.
f. All visible and apparent easements and all underground easements, the existence of which may arise by
virtue of unrecorded grant or by use.
g. Any portion of the subject property lying within tbe bounds of any public or private road.
h. Rights of Parties in Possession.
COUNTE~ . ~IGNED~ ~
~ AUTi ~O~RI~ZEDzSIGN~¥
SCHEDULE B Schedule B of this Policy consists of 2 pages.
Page 3
Owners Policy Texas Form T-1
rsecamordefect sadoolicytobe nanamountequalto hecurrentvalueoftheproperty
. . i hour exce on or he lien encumbrance, adve . r olic les o le insurance withou excep 'on
his phc a ohcyo e nsu anoew P. an ~nconnec onwth s ssuanceo ap y ) . .
~ if a ~oil~yaoep~ po cy he amount ?f the o~n; iv) ,ndemn,fy another t,tl.e ms, urance.c,o.4?c~,.,,Y,, ,.,,~ he, i,~n encumb anco adverse c a m or defect or vi undertake a comb,nat,on
fo'rthelien, ~n~um'branc~, adverse claim or defect, (v) secure a release or otner oocume,Lu, ..... ~,-u ......
of (i) through (v) herein.
4. DEFENSE AND PROSECUTION OF ACTIONS'.
OU F NSURED CLAIMANT TO COOPERA':i'E ....... ~ .... ' ,~'~^ Conditions and Stinulations, the Company, at its own cost and without
a TUY ~n wen request by he insured and sub ecl to [he, op~?~, cor[ta,n~e~.,~n~,e,c~r~ °.aUr~,~'~s~s~rts a claim adverse ~'~ the t teo n erest as insured, but only as to those
unr~a~onaP~le delay, sha provide for the defense of an insurea in iii ga ion in w. u. ~,.y~ ..~ ~, ~
' inst th s olic. The Company shall have he right to select counsel of its choice (subject
~,.,,=,~ ,...~r~ nfa ' n allea naa defect en or encumbrance or other m~tter ~n,sure.d ?,_g_a!_ .,o,o~P~..Y~ n ~ ion and sha not be liable for and will not p~y the fees o! a~¥ ot.h,.~r
~,"~ L"-~ ,?~,~,,'~ '; ~,~ ianc~l~d te~b~ct for reasonable cause)to represe,nt the ,nsur?,a a~ [o [ne,~u .~,,_ ~_ %.,. ~ -~-.2 ~ fo¢hanc. Rt ~ causes of action that allege matters not ,nsured ago, nsf Dy this
tcOo ~ ~s; ~. ' ~'e"~o'~r~ ~v-ill- ~t pay any fees, costs or expenses ~ncurred by the ,nsurea in the uu,~.
o c - -ctionor"roceedngo o do any o her ac hatinitsopinionmaybenecessaryordesirable
P I~i The Company sha have the dght, atits°wnc°st't°instlturea?°pr?-?e~c..u?~a?n~'t.~m~l]e~'tothe nsured The Company may take any appr°pri~'!e actign u..n, de?~e~!,e.,r~m~
t~ e~t~blish he {tie ~o the es ate or interest, as insured, oreo,pr.e?? ,or re~c_e~u~t,~.~i~ilii~° waive any pro~/ision o this policy, if the Company shal~ exercise us nU,,~
~ t-h~ policy whether or not it ~t~a[I b.e hable hereunder, and snail nor rnereuy "';unu ........... '- -- - ...... ,-,,-,*~,~r,,, m~v nU sue anv Ii ieation
this ara raph, shalldo so d gent *. .. .,~,^,~,,,..,a.ri,~f~nseasreouiredorpe m edbytheprovsonso nlSpOllCy ~ne'.-,,-,,-w-~,"-.'r' -
~) ~/g~enever he Company shall lave broL~gq a0 ~c~,on o,,.~.~.~-~7.~.,~r~7.:, thor n~ in its ~o e d sc etlon to appeal from any adverse judgement or order.
to final dete m nation by a court o compe, en Ju s~,ctlon a[(~ ex~es~Y~o~s~;tTt~ "n'r"~7~'v[~e for the de ense of any act on or proceed ng, he insured shall secure to the Company
Ina caseswherethispolicyperm[tsorrequ es the ~omp~, y ~", ';'," '~,";,g~...,~ -nd,.e mi the Comnanvtouse, atitsoption, henameoftheinsuredforthispurpo~e.
h,= !~h**,-, ~:,-, nrn~ecute O provide defense in the action or proceea rig, aha all a ,pp ,e,a,~ ~..~ u~;,~,.~,~ ~11 r,=~onab ~ ai~ ~it in any action or proceeding, securing evidence, e,bt~ln~g
.-~.,u ...... ,. .... heCom an sexpense sna glveule~,,-,,.F,~ ..... . .. m an ma be necessary o oesl
Whenever equestedbytheCom any,the ?u ed, a ' P Y ' lament and nanyot~er awfCactthabntheop~nono !he.Co .p~.~=~. Y,~... C.,~mn2 v' ob cations
wtnesses rosecu ngordefen~i~gtheachon~rproceed~n oreffectmg~ett , ,, ( )he fa lure o he nsuredtofumishtherequlreecoop?,~,'": .... ?~a~;~s~,
P ' esateo nte est as~nsured. Ift~eCompany~ p~eiudced bY ' ~ vlitoaion w h e ardtotnemauero ma ~.~.~...__~___
to es ~b ~sh the le to the , , ,rtlnn ;any I ~ v r obllaahon to defend rosecu e, o cont nue _n. ~ g
to the ~nsured under the pohcy shall terminate, ~nclu~,-u __. ,Lb~ht. o _ P
cooperation·
SS OR DAMAGE ....... ' -. h*-^ ~'-"n" ovided the Comnany, a proof of loss or damage signed and sworn
5, iPnRaOd~oOn ~oLaOnd after the notices required under Section 3 ~f !he.s?.O_ond?n,s~a..n~,~.i~'n'~;~sc~rtain the acs gi~ing rise to th? loss or dam, age. The .pr.o~t,?f.l.o
rnh;i~insuredcamantsha befurnshedt~the~mpanywithme1~?'aysa"j`?ru~2~`;~;';.~h~nainstbvths~iicytha consitutesthebasls°fi°ss°roa.m, ag~anus!~a~.".;'7.
;,"r ~2n¢. shall descr be he defec n, or lien o encumbrance on the tdle~ or other lj,~;.~,~,~;,;,~ nrr4ud~ced t~v the a ute o he nsured claimant to proylee the r,e.gu~?u
r' ::-'"-% ~ 2__.=~.,~ .,.^ ~..... o calculatinn the amount of the loss o carnage, n tnu ,.,.,,,~,-,,,¢ ,,.~ "%Z:7;,.:,.=,;,.'^. ,.~, "a on to defend, prosecute, or continue any ilnganon,
of loss or damane, the Company's obligations to the insured under the pol;cy shall terminate, g Y .
..... ,~ t,~ ~h~ ~tter or matters requlr ng such proof of loss or damage. . ......... h b" an,, author zed rep esen ative of the Company and s~all pro,duce for
"~.'~ ";' ::,"' .... '~ ..... + ma,, reasonably be requ red to submit to exammauun u~u<:,,, ,ua, ~, ,~- -~.~ ..... entative of the Company, all records nooks, leogers,
In. ac?lepta, [ne I!?um.=_%u..,~,,,,,~i~,'~ *t [.nh eason'able times and places as may be d~signatgo, uy any a~?u.~.,~2=..% ..... ,~oma~e Fud,~er, if requested by any authorized
exam~nahon, mspecuon ~nu.u~.~,.~, ~; ~-T,:,..~._.,.^~rinn ~ d~te before or after Date of Policy,which reasonaoly penum?~.?!,',-'oo..,'-','.',"~.~,.,',,~:.;,~v~min~ inspect and copy all records,
checks correspondenceandme~o!an°a'~w~u_l%~..u,~s~ii=~'i~,~ermsson, nw ng oranyauthorizedrepresen!ahve°!tqe?m,~."[:'~%~"~:llir~forma on ~s gna ed as
ooks led ers, checks, correspondence and memoranda mn the cuszouy ~,~ ~ . "J"~' ~ot ~ disclosed o others unless, in the easonable judnement of the Company, it ~s
b . ' , q .... -, -,-~.--~ -,,,vided to the Comnany pursuant to tins ~ecrlon sna, . .. .,.~ ~.,..^. reasonabl" renuested i~(~rmation or grant pprmtssion
to secure reasonably necessary reform P
6. OPTIONS TO PAY OR OTHERWISE SE'R'LE CLAIMS;
RMIflAT ON OF LIABILITY
I'i'~E~ase of a cia m under this policy; !,h_e C.o. mp.~_n.y~h~a..ll...h, raaV~ectehe following additional options: , -, .... ;--,,r~,d claimant, which were
('¢) ~, Y=nri¢r nmlm~nt C~f the amount of insu once under th,s policy, tugut,~. '~'".', '~"A ..... L-~L-~,".. ~ae~s,-, ,.,.~ - ,
? o,pa~ ~. [,...~.y.. t.~.,~,-~,~rt,~ fha rime of cayman or tender of payment and which the ~,orr}par~¥ ,~ u,,:,,,~.,.~,,'~-n¢in make the carmen required shall terminate, incluomg
Upon he exercise by the L;ompany o1' mis opuun, ~, ,~u,,,,~ ,,~..__.:_7 ~.a ~.,-. ,-.~u;,.,, .hall be su rendered to the Company rot cancel~auun.
an Ability or obligat on o de end, rosecute, or con_t[.nue .a,~y ,~l,.g~lu~:,.~,~ ~,~,.¢~ insured Claimant
Y(b) To Pay or Otherwise SettI~ With Parties umer man me '"~u'~ .............
· , ' ' red claiman any c a m insured against anger this policy, together,with any cost? attorneys' fees
i TO pay o o henNise ~ettle wdh c?ther partl?s for or in fl? n~m.e ~o!.a,~n}n~su.. ........ to the time o ca ment and which the Company is obi,g, .ated to p~a~!,.Oor,~..,. ~,~.r
nd ex' bnse~ ncurred by the insured clalman, which wore aumonzeu uy ~.u '""~'~',',!.4~ or unde th s ~olcy together with any cos s, attorneys tees anu u^~. ...... ,,.....!ed
a ~) To pay crc herwise Settle with the [nsu[ed c..Jla, m ant th ~. I,o..s,s~. o~ ?22~g~eo r ~; ~ ~'~ d wh ch he Co~n~ puny is obligated to pay. Upon the ex..erc,,st.b..Y,~..enC~OvmmPe~sY r°e~e~ti~
hvrhc, ih~uredcaimant, whichWereauthorizedbytne uompany uEtu ?~ %"~"'Y-'?,,'~ n~nmd~nder this policy for the claimedloss oroamage, o[ner~na"~'u~'"~ .......
....... . ' ' ara rahs b i or ii) the Company s con anons~o t.~ ...... :.___ .... _
o~the opt ons provided for m p g, P ( )([ ........... ,~,, o,,~ nrosecute or continue any litigation.
to be made, shall terminate, ~ncluomg any i~aol~lty u~ uu,gc~uu- ,',-, ....... ,- ,
7 Thispolicysacontractofindemn yaganstac~ua~m~netary~~ss~rdamagesustained~rincurredbytheinsuredc~aimantwh~hassuffered~~ss~rdamagebyreas~n~fmatters
insured against by this po cy and only to he ex ent here n described.
(a T~e ~be i~,Ym~utn~teo?~nmsuPraa~nYcUensdt~etdh CnPs1~eYdSu~eal~trexceed the least of:
Il) he difference between the value o heinsuedestaeorinterestas nsu ed and the va ue of the insured es ate o heres subec o the defect, lienor encumbrance
insured against by this policy at the da e the insured Claimant is requ red to urn sh o Company a p co o loss or damage n accordance with Sect on 5 of these Condi ions and
ti uaions ......... ,,:, ~* ' loss hanS0nercen ofthevalueoftheinsuredesaeo neestorthef¢~onsideration
S Pfbt n h~eventtheAmountoflnsurancestatedinScheeuleA-a~rn'~uate'°'~,-°,l!~y--,,I-'s,,~'i''' ° ected~r~theland which increases the value °f the insured estate °r mterest by at
paid'~r the land, whic.h, eve..r is:le.s.s, ,or.if~ ,s, .u.b.s,.e~ u~ ,e~ t~ ~o itnh ~ cDh~t~u~; ~'l~Ye na~h'i~ ~;[;;¢ 'i[''~'u';j;ct to the follow?g.. ......... ,-*~,o ,',ro,',ortion that the amount of insurance
- li~' where no subsequent improvement has oeen maae, ~ tu ~? y~, ~ii~'~/' nr ' ' - ..... ~^ Amnunt
~ n~t~"of PO CV bears to the total value of the insured estat? or in?res~ at_ ~[~,~,~, ,;~.,o~,, a n,, shall only pay the loss pro rata in the p!oporhon rna! ~ ~u perce.~
.... liil where a subseqUent mprovement has been m~ae, as?,a,ny p~_[~.,u.,~;~,~Sci~d~e A and the amoun expended fer the ~mprove~m: ........... rtion
n n~ ~nce s a ed in Schedule A bears to the sum of the Amount or ~,n,sur~r~.,~Un,.,~ f[~r wh ch he Company is liable under this policy, ano snail only apply ~u ~.,~ ,~,~
...... tees ~,u ~ ~ . .......
"The provisions of this pa agraph shall not apply to cost. s, attorneys . 'nsuranc~ ~'t'~t"e~d in Schedule A
ercent or the ^mourn or
of any loss which exceeds, in the aggregate 10?. -~,,~' ^o. ~nd R×nRn.~eS incurred in acco dance with ~ection 4 of these Conditions and Stipulations.
(c)The Company will pay only those costs, attoruu.,o ,~ ....... ,.
PORTIONMENT ..... sasin"es e, andaloss s es ab~ished affec ngoneor more of the parce~s but notall,
8, AP , .. .,_ .,..~,.~,,,~,,i,~A,~onsistsoftwoormoreparcelsma~arenotusuu~'. .,'~ ,. _. ,~,.;.,^.~ ..,.. ,ota as to the value on Date ot Policy of each separate
~h~r !~Soel !il!ii ~Ce :~iil li~ on v~ ~iiiti~i!, ~u~is ~ ~ lin! ii~! e~ i in~! [scai~iii !ii~a~ e~ii~s~ ~i~ont~ igsr %%~ cue o n as to each parcel by the Company
and the insured at the time of the ~ssuance of t ' p Y
9. LIMITATION OF LIABILITY
a If the Company establishes he e, or emoves the afleged defect, lien or encumbrance, or cures the Pack f
action in accordance with Section 3 o Section6 nare~o,-,-ok~..~;~, ...... ,.. ....... o anghtofaccess ocr omthe and alii i
performed its obligations ~i[h rsspeFt to tl~at r~.~tt~r an ~'~'1~ ~'~o'~'~'~i~'~i~!~ ;~vYl~ ~n~y nmre~; ~n~c ?°'rig I,t, ahon ~nd the completion of any appeals therefrom,
[ ) L, ompany shall not be iabeforlossordama,.,etoam, im..,~., ^ _~.. . . . s Ins? ea. n
of the Company. ~ · °``~`~`'u'"~un~yv~un[ar~yassumedbythemsuredmsetthnganyc~aim~rsuitwith~utthepri~rwrlttenc~nsent
10. REDUCTION OF INSURANCE:
REDUCTION OR TERMINATION OF LIABILITY
All payments under this policy, except payments made for costs, attorneys' fees and expenses, shall reduce the amount of the insurance pro lento.
11. LIABILITY NONCUMULATIVE
it is expressly understood ha he amount of insu ance under this policy shall be reduced b an amc n
excep'on stakeninSchedueBortowhichthein ¢.dh~r~r~c,H ~ y y . ~ t he Oompany may ayunderan olic insurin
estate or interest described or referred ' sur ............ ssumed?takensubect, orwh~ch~shereafferexecuted~ aninsure~aP~ Y. gamortgag~towh~ch
to in Schedule A, and i~e amount so paid shall be ~eemed a payment under this policy ~ the insured ~dw~lr!h isa charge or lien on the
12. PAYMENT OF LOSS
a Nopaymentshallbemadewthoutproducing h sp~Iicyf~rend~rsement~fthepaymentunIessthep~Iicyhasbeen~~st~rdestr~yed~inwhichcasepr~~f~f~~ss~rdestructi~n
shall be furnished to the sa is act on o he Company.
(b) When liability and the exten o oss or damage has been definitely fixed in accordance with these Cond tions and Stipulations, the loss or damage shall be payable within
30 days hereafter.
13. SUBROGATION UPON PAYMENT OR SETrLEMENT
!?), The C~mp..any's Righ, t of Subrogation.
whenever me t;ompany snail have se led and paid a claim under this policy, all rinht of subrogation shall vest in he Company unaffected by any act of the insured claimant
The Company shall be subrogated to and be entitled to all rights and remedies thai'the insured claimant would have had against any person or property in respect to he c ai~
had this policy not been issued. If requested by the Company, the insured claimant shalltransfer to the Company all rights and reined es against any person or property necessary
in order to perfect this righ o subrogation. The insured claimant shall permit the Company to sue, compromise or se t e n the name of the insured claimant and to use the name
of the insured claiman n any transaction or t gation involving these rights or remedies.
If a payment on accoun o aclaimdoesnotfull coverthelossof ' '
the Company's paymen bears to the whole amounYt of th I ss the insured claimant, the Company shall be subrogated to these r ghts and remedies n the I~r o ri'on which
Ill e o . _o.o
oss should result from any ecl of he nsured claimant, as stated above, that act shall not void this policy, but the Company, in that even, she I be required to pay o.n, y that
oP~srtuO~r ~n Yatli~e s insured against this policy that shall exceed the amount, if any, lost to the Company by reason of the impairment by the insured cia mant of the Corn an sri ht
(,.b,) ~he Company's Rights Against Non Insured Obll ors P y g
of I n~s~er a~°c ~ Po~ ~Y~ Sn ~isg, h~ o°~ ~hb~agna~ii°n~ aag~ ~tr mn ~%irn~?tii!isgc%Sn ~a~ ~ ~tt ~sdeS ~na~lti~ ~dn~~ ~tahtO~]o ~ri d~aftioOr n~ ~ ~ reor;ga~ loSnO fr l~t isn ~ ~ r reedatsO~ nn do~ ~ ~ilcg, UarantiesO her policies
14, ARBITRATION ' ' ' ' ' y'
Unless prohibited by applicab e aw or unless this arbitration section is dele ed by specific provision in Schedule B of this policy either he Company or the insured may demand
arbitration pursuant to the Title Arbitration Rules or the American Arbitration Association. Arbitrable matters may include, but are not limited to an), con roversy or claim between
the Company and the Insured arising out of or rela ng to thispolicy, any service of the Company in connection wi h he ssuance or the breach of a po cy provision or other obligation
All arbitrable matters when the Am ou nt of Insurance is $1,000,000 or less SHALL B E arbi rated at the request of either the Company or the Insured, unless the Insured is an ind~viduai
person as distinguished from a corpora ion, tust, partnership, association or other legal entity). All arbitrable matters when the Amount of Insurance is in excess o $ ,000,000
i~iIIdi~iilb:tiiiilflnlywhenagreed/obyboththe Companyand he nsured. Arbitrationpursuan othispolicyandundertheRuesineffectont.h, edatethedemandforarbitration
is made or at the op ~on o the insured the Rules Jn effect a Date of Po icy shall be binding upon he parties. The award may include attorneys fees only if the laws of he state
n which the land is Ioca ed pe mi a court o award attorneys' fees to a prevail ng party Judgement upon the award rendered by the Arbitrator(s) may be entered in any court having
The law of the situs of the land she app y to an arbi ration under the Title Insurance Arbitration Rules.
A copy of the Rules may be obta ned from the Company upon request.
15. LIABILITY LIMITED TO THIS POLICY:
POLICY ENTIRE CONTRACT
(a) This policy together with a endorsements, If any, attached hereto by the Company is the entire policy and contract between the Insured and the Company n
interpreting any provision of this policy, this policy shall be construed as a whole.
(b) Any claim of loss or damage, whether or not based on negligence, and which arises out of the status of the title to the estate or Interest covered hereby or by
any action asserting such claim, shall be restricted to this policy.
(c) No amendment of or endorsement to this policy can be made except by a writ ng endorsed hereon or attached hereto s gned by either the President, a Vice
President, the Secretary, an Assistant Secretary, or validating officer or authdrlzed signatory of the Company.
16, SEVERABILITY
in the event any prov s on o he po icy is held invalid or unenforceable under applicable law, the policy shall be deemed not to include that provision and all other provisions
shall remain in u I force and effect.
17. NOTICES, WHERE SENT
Ali notfces required to be g van the Company and any statement in writing required o be urnished the Company shall include 1he number of his policy and shall be addressed
to the Company at Security Union Title Insurance Company National Claims Department, P.O. Box 2233, Los Angeles, Ca fornia 90051.
COMPLAINT NOTICE
Should any dispute ar se about your premium or about a claim that you have filed, contact the agent or write to the Company that issued the o cy f the problem
Is not resolved you also may wr te the Texas Department of Insurance, P.O. Box 149091 Austin, TX 78714-9091, Fax No. (512) 475-1771. Th~ notice of complaint
procedure s for Information only and does not become a part or condition of this po cy.
' FOR INFORMATION, OR TO MAKE A COMPLAINT, CALL:
1-800-442-4303