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HomeMy WebLinkAboutRES 14-220RESOLUTION NO. 14-220 BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF BEAUMONT: THAT the City Manager be and he is hereby authorized to execute an Earnest Money Contract with MG Real Properties, Ltd. for the sale of property located at 1870 Louisiana Street. The contract is substantially in the form attached hereto as Exhibit "1" and made a part hereof for all purposes. PASSED BY THE Cl V September, 2014. or %w 1, NCIL of the City of Beaumont this the 30th day of 0 01 - r Becky Ames - TEXAS ASSOC1AT10N OF RF'Al.TORS@ COMMERCIAL CONTRACT - IMPROVED PROPERTY USE OF THIS FOHN BY PERSONS WI lO ARE NOT MEMBERS OF THL TEXAS ASSOCIATION OF SEALTOFIS,fs IS NOT RUTS IORIZI.D. Woxa s Amdalfon of RFALTORM, Int. 20H 1, PARTIES: Seller agrees to sell and convey to Buyer the Property described in Paragraph 2, Buyer agrees to buy the Property from Seller for the sales price stated in Paragraph 3. The parties to this contract are: Seller: city of _Beaumont Address: 801 North Main Street, Beaumont-_ Tx_ 77701 _ Phone: _ E -mail: Pax: Other; Buyer: MG- Real Properties., Ltd. Address: 1655 Louisiana Street, Beaumont, TX 77701__ Phone: - .(409) 833-2665 E -mail: brian,.,bommeSmodernusa. com......� Fax; - -_ -_,� -_ Other: 2. PROPERTY: A. "Property" means that real property situated in Jefferson_-_ County, Texas at _1870 Louisiana Street, Beaumont TX _77701 (address) and that is legally described on the attached Exhibit__- A _ or as follows: B. Seller will sell and convey the Property together with: (1) all buildings, improvements, and fixtures; (2) all rights, privileges, and appurtenances pertaining to the Property, including Seller's right, title, and interest in any minerals, utilities, adjacent streets, alloys, strips, gores, and rights -of -way; (3) Seller's Interest in all leases, rents, and security deposits for all or part of the Property; (4) Seller's interest in all licenses and permits related to the Property; (5) Sollar's interest In all third party warranties or guaranties, If transferable, relating to the Property or any fixtures; (6) Seller's interest in any trade names, if transferable, used in connection with the Property; and (7) all Seller's tangible personal property located on the Property that is used in connection with the Property's operations except: Any personal property not included in the sale must be removed by Seller prior to closing. (Describe any exceptions, reservations, or restrictions in Paragraph 12 or art addendum.) (It mineral rights are to be reserved an appropriate addendum should be attached.) (it the Property is a condominium, attach Commercial Contract Condominium Addendum (TAPS- 7930).) 3. SALES PRICE: At or before closing, Buyer will pay the following sales price for the Property: A. Cash portion payable by Buyer at closing . ... . ........ . . .... . . . . . .. . . ..$ 182 -0 0 0, 0Q B. Sum of all financing described in Paragraph 4 ....... . . . . .... . . ... . ......$ �_...� C, Sales price (sulrl of 3A and 3B) ....... . .. . .... . . . ............. . ...... $ _____ 182 ,_000.00 (CAR- 4.1 -14 InNafed for Identification by Seller _ _ , _ and Buy - Page 1 of 14 NAI Whe der, 470 Orleans Streci, 1'2(11 Floor 13cau wn(, 9'X 77701 Fhouc 409- 399 -33(1) flax: 40,M99 -3301 HI Ica Goss I8701_ouisiasia, Pin(fucod with zlpFOmti79 by,Ipl. W-,1x 18070 Fihoen U le Road, Fraser, (.SFf peji *026 ynysr.ztpLQg .coerr EXHIBIT "1" Commercial Contract - improved Property concerning _ 1870 Louisiana_ Street, Beaumont TX 77701 4. FINANCING: Buyer will finance the portion of the sales price under Paragraph 3B as follows: Cl A, Third Party Financin: One or more third party loans in the total amount of This contract: ❑ (1) is not contingent upon Buyer obtaining third party financing. C.-.l (2) is contingent upon Buyer obtaining third party financing in accordance with the attached Commercial Contract Financing Addendum (TAR - 1931). ❑ B, Assumption: in accordance with the attached Commercial Contract Financing Addendum (TAR - 1931), Buyer wilt assume the existing promissory note secured by the Property, which balance at closing will be $_ D C. Seller Financing: The delivery of a promissory terms of (he attached Commercial Contract 5, EARNEST MONEY: note and deed of trust from Buyer to Seller under the Financing Addendum (TAR -1931) in the amount of A. Not later than 3 days after the effective date, Buyer must deposit $ 5_,000 t,90 as earnest money withTexae Regional. Title Company (tii.le company) at 3195 Dawlen Rd., Ste 108,Leaumant, TX (address) Molly Mallet (closer), If Buyer fails to timely deposit the earnest money, Seller may terminate this contract or exercise any of Seller's other remedies under Paragraph 15 by providing written notice to Buyer before Buyer deposits the earnest money. B. Buyer will deposit an additional amount of $ with the title company to be made part of the earnest money on or before: 0 (i) __ days after Buyer's right to terminate under Paragraph 7B expires; or Buyer will be in default if Buyer fails to deposit the additional amount required by this Paragraph 58 within 3 days after Seiler notifies Buyer that Buyer has not timely deposited the additional amount, C. Buyer may instruct the title company to deposit the earnest money in an interest - bearing account at a federally insured financial institution and to credit any interest to Buyer. 6, TITLE POLICY, SURVEY, AND UCC SEARCH: A. Title Policy: (1) Seller, at Seller's expense, will furnish Buyer an Owner's Policy of Title Insurance (Vte title policy) issued by any underwriter of the title company in the amount of the sales price, dated at or after closing, Insuring Buyer against loss under the title policy, subject only to: (a) those title exceptions permitted by this contract or as may be approved by Buyer in writing; and (b) the standard printed exceptions contained in the promulgated form of titlo policy unless this contract provides otherwise. (2) The standard printed exception as to discrepancies, conflicts, or shortages in area and boundary lines, or any encroachments or protrusions, or any overlapping improvements: M (a) will not be amended or deleted from the title policy. ❑ (b) will be amended to read "shortages in areas" at the expense of D Buyer ❑ Seller. (3} Within 1_!�__ days after the effective date, Seller will furnish Buyer a commitment for title insurance (the commitment) including legible copies of recorded documents evidencing title exceptions, Seller authorizes the title company to deliver the commitment and related documents to Buyer at Buyer's address. (TAR -1801) 4 -1.14 Initlated for Identification by Seller , and I3uye�� pe c tied with ApFomrD by zipL4X 18070 F Cun hUe Road, FraGel, h1 hkpn 48026 Y,5yy; elaloal unn Page 2 of 14 1870 LOIUShVlil, Commercial Contract Improved Properly concerning ,__1870 Louisiana Street, Beaumont, TX 77701 B. Survey: Within._.__Za ,_ days after the effective date: (1) Buyer will obtain, a survey of the Property at Buyer's expense and deliver a copy of the survey to Seller. The survey must be rnade, in accordance with the: (i) Ai_TA/ACSM Land Title Survey standards, or (ii) Texas Society of Professional Surveyors' standards for a Category 1A survey under the appropriate condition. Seller will reimburse Buyer._. (insert amount) of the cost of the survey at closing, if closing occurs. Q (2) Seller, at Seller's expense, will furnish Buyer a survey of the Property dated after the effective date. The survey must be made in accordance with the: (1) ALTA/ACSM land Title Survey standards, or (ii) Texas Society of Professional Surveyors' standards for a Category 1A survey under the appropriate condition. J (3) Seller will deliver to Buyer and the title company a true and correct copy of Seller's most recent survey of the Property along with an affidavit required by the title company for approval of the existing survey. If the existing survey is not acceptable to the title company, Seller, at Seller's expense, will obtain a new or updated survey acceptable to the title company and deliver the acceptable survey to Buyer and the title company within 20 days after Seller receives notice that the existing survey is not acceptable to the title company. The closing date will be extended daily Lip to 20 days If necessary for Seller to deliver an acceptable survey within the time required. Buyer will reimburse Seller (insert arnount) of the cost of the new or updated survey at closing, if closing occurs. C. UCC Search: (1) Within days after the effective date, Seller, at Seller's expense, will furnish Buyer a Uniform Commercial Code (UCC) search prepared by a reporting service and dated after the effective date. The search must identify documents that are on file with the Texas Secretary of State and the county where the Property is located that relate to all personal property on the Property and show, as debtor, Seller and all other owners of the personal property in the last 5 years. �3 (2) Buyer does not require Seller to furnish a UCC search. D, Buyer's Objections to the Commitment Survey, and UCC Search: (1) Within 5 _ days after Buyer receives the commitment, copies of the documents evidencing the title exceptions, any required survey, and any required UCC search, Buyer may object to matters disclosed in the items if: (a) the matters disclosed are a restriction upon the Property or constitute a defect or encumbrance to title to the real or personal property described in Paragraph 2 other than those permitted by this contract or liens that Seller will satisfy at closing or Buyer will assume at closing; or (b) the items show that any part of the Property lies in a special flood hazard area (an 'A" or N" zone as defined by PEMA). If Paragraph 6B(1) applies, Buyer is deomed to receive the survey on the earlier of: (i) the date Buyer actually receives the survey; or (ii) the deadline specified in Paragraph (38. (2) Seller may, but is not obligated to, cure Buyer's timely objections within 15 days after Seller receives the objections. The closing date will be extended as necessary to provide such time to cure the objections. If Seller faits to cure the objections by the time required, Buyer may terminate this contract by providing written notice to Seller within 5 days after file time by which Seiler must cure the objections. If Buyer terminates, the earnest money, less any independont consideration under Paragraph 7B(1), will be refunded to Buyer. (3) Buyer's failure to timely object or terminate under this Paragraph 6D is a waiver of Buyer's right to object except that Buyer will not waive the requirements in Schedule C of the commitment. (TAti•1801) 4.1 -14 Inillaled for Identification by Seller , __ and Buyz - Page ',3 of 14 Prpluced wills ziffoIMD by 71PLOQIX 18 070 FAmi 1,06 Road, Fro$ or, Kchl2m 46026 kW ,Aal mfxxx) 3 18701.0uliiana, Commercial Conirad - Improved Property concerning - 1870 Louisiana Street, Beaumont, TX '77701 7, PROPERTY CONDITION: A. Present Condition: Buyer accepts the Property in its present condition except that Seller, at Seller's expense, will complete the following before closing:_.___ ----- B, Feasibility Period: Buyer may terminate this contract for any reason within --------- 20 _ days after the effective date (feasibility period) by providing Seller written notice of termination. (Check only one (pox.) fxl (1) If Buyer terminates under this Paragraph 7B, the earnest money will be refunded to Buyer less $ --9,-000 -.00 _ that Seller will retain as independent consideration for Buyer's unrestricted right to terminate. Buyer has tendered the independent consideration to Seller upon payment of the amount specified in Paragraph 5A to the title company, The independent consideration is to be credited to the sales price only upon closing of the sale. If no dollar amount is stated in this J (2) Not later than 3 days after the effective date, Buyer must pay Seller $ _._ as independent consideration for Buyer's right to terminate by tendering such amount to Seller or Seller's agent, if Buyer terminates under this Paragraph 78, the earnest money will be refunded to Buyer and Seller will retain the independent consideration. The independent consideration will be credited' to the sales price only upon closing of the sale, If no dollar amount is stated in this C. Inspections, Studies or Assessments: (1) During the feasibility period, Buyer, at Buyer's expense, may complete or cause to be completed any and all inspections, studies, or assessments of the Property (including all improvements and fixtures) desired by Buyer. (2) Seller, at Seller's expense, will turn on all utilities necessary for Buyer to make inspections, studies, or assessments. (3) Buyer must: (a) employ only trained and qualified inspectors and assessors; (b) notify Seller, in advance, of when the inspectors or assessors will be on the Property; (c) abide by any reasonable entry rules or requirements of Seller; (d) not interfere with existing operations or occupants of the Property; and (e) restore the Property to its original condition if altered due to inspections studies, or assessments that Buyer completes or causes to be completed. (4) Except for those matters that arise from the negligence of Seller or Seller's agents, Buyer is responsible for any claim, liability, encumbrance, cause of action, and expense resulting from Buyer's inspections, studies, or assessments, including any property darnage or personal injury. Buyer will indomnify, hold harmless, and defend Seller and Seller's agents against any claim involving a matter for which Buyer is responsible under this paragraph. This paragraph survives termination of this contract. D. ProgertyInformation: (1) Delivery of Property Information: Within N/A days after the effective date, Seller will deliver to Buyer: (Check all that apply.) (FAR -180i) 4 -1.14 fnilialed for Identification by Seller , —_ _ and Buyer? Page 4 of 14 I' OJUM4I W41 I zInF01W&by zlA.LKjX 16070 Fit to f6;e Road, Fla set. M;eblgw 48026 n,._�•ny. ?,)Jml d4ID 1 970 Louisiano, Cornmerclal Contract � Improved Property concerning 1870 Louisiana Street, Beaumont, TX 77701 • (a) a current rent roll of all leases affecting the Property certified by Seller as true and correct; • (b) copies of all current leases pertaining to the Property, including any modifications, supplements, or amendments to the leases; ❑ (c) a current inventory of all personal property to be conveyed under this contract and copies of any leases for such personal property; ❑ (d) copies of alt notes and deeds of trust against the Properly that Buyer will assume or that Seller will not pay in full on or before closing; (e) copies of all current service, maintenance, and management agreements relating to the ownership and operation of the Property, ❑ (f) copies of current utility capacity letters from the Property's water and sewer service provider; ❑ (g) copies of all current warranties and guaranties relating to all or part of the Property; ❑ (h) copies of fire, hazard, liability, and other insurance policies that currently relate to the Property; * (i) copies of all leasing or commission agreements that currently relate to the tenants of all or part of the Property; ❑ (j) a copy of the "as- built" plans and specifications and plat of the Properly; ❑ (k) copies of all invoices for utilities and repairs incurred by Seller for the Properly in the 24 months immediately preceding the effective date; (I) a copy of Seller's income and expense statement for the Property from to _ ; ❑ (rn)copies of all previous environmental assessments, geotechnical reports, studies, or analyses made on or relating to the Property; ❑ (n) real & personal property tax statements for the Property for the previous 2 calendar years; and ❑ (o) Tenant reconciliation statements including, operating expenses, insurance and taxes for the Property from -- and ❑ (p) (2) Return of Property Information: it this contract terminates for any reason, Buyer will, not later than 10 days after the termination date: (Check a# that apply.) Ct (a) return to Seller all those items described in Paragraph 7D(1) that Seller delivered to Buyer in other than an electronic format and all copies that Buyer made of those items; O (b) delete or destroy all electronic versions of those items described in Paragraph 71DI;1) that Seller delivered to Buyer or Buyer copied; and ❑ (c) deliver copies of all inspection and assessment reports related to the Properly that Buyer completed or caused to be completed. This Paragraph 7D(2) survives termination of this contract, E. Contracts Affecting Operations: Until closing, Seller (1) will operate the Property in the same manner as on the effective date under reasonably prudent business standards; and (2) will not transfer or dispose of any part of the Property, any interest or right in the Property, or any of the personal property or other items described in Paragraph 2B or sold under this contract. After the feasibility period ends, Seller may not enter into, amend, or terminate any other contract that affects the operations of the Property without Buyer's written ap;oroval. 8. LEASES; A. Each written lease Seller is to assign to Buyer under this contract must be in full force and effect according to its terms. Seller may not enter into any new lease, fail to comply with any existing lease, or make any amendment or modification to any existing lease without Buyer's written consent. Seller must disclose, In writing, it any of the following exist at the time Seller provides the leases to the Buyer or subsequently occur before closing: (1) any failure by Seller to comply with Seller's obligations under the leases; (TAR 180t) 4 -1 14 initialed for Idenfiticalion by Seller and 6uyQl'�� Pl:)duood Willi ZipFDIM" by ZIPI -091X 1604 Fit lean 6GI0 Road, Fraser, Miofi!pen 400?6 uzvn.zlv_Loglxs� Page 5 of 14 1870 Louisiana, Commorcial Conlract - improved Property concerning 1870 Louisiana Street Beaumont, TX 77701 (2) any circumstances under any lease that entitle the tenant to terminate the lease or seek any offsets or damages; (3) any non- occupar cy of the leased premises by a tenant; (4) any advance sums paid by a tenant under any lease; (5) any concessions, bonuses, free rents, rebates, brokerage commissions, or other matters that affect any lease; and (6) any amounts payable under the leases that have been assigned or encumbered, except as security for loan(s) assumed or taken subject to under this contract. B. Estoppel Certificates: Within N/A days after the effective date, Seller will deliver to Buyer estoppel certificates signed not earlier than by each tenant that leases space in the Property. The estoppel certificates must include the certifications contained in the current vorsion of TAR Form 1938 Commercial Tenant Estoppel Certificate and any additional information requested by a third party lender providing financing under Paragraph 4 if the third party lender requests such additional information at feast 10 days prior to the earliest date that Seller may deliver the signed estoppel certificates. 9. BROKERS: A, The brokers to this sale are: Principal Broker: KenWheel, Inc. dba NAI Coop©rating Broker: AgenC L9-q- X. Wheeler, III Agent: Address: 470 Orleans Street, 12th FL Address: Beaumont, TX 77701 Phone & Fax: 4 9 899 -3300 (909 B) 99 -3303, — Phone & Fax: E-mail: LWheeler @_NAIWheeler,com E -mall; License No.: 467055 license No.: Principal Broker: (Check only one box.) Cooperating Broker represents Buyer. Q represents Seller only. ❑ represents Buyer only. ❑ is an Intermediary between Seller and Buyer. B. Fees: (Check only (7) or (2) boiow.) {Complete the Acgree+rnent Between Brokers on page 14 only if (1) is selected.) ❑ (1) Seller will pay Principal Broker the fee specified by separate written commission agreement between Principal Broker and Seller. Principal Broker will pay Cooperating Broker the fee specified in the Agreement Between Brokers found below the parties' signatures to this contract. M (2) At the closing of this sale, Seller will pay: Principal Broker a total cash fee of M _ 3.0 3. 00,0,. -_ % of the sales price Cooperating Broker a total cash fee of: % of the sales price. . f1 The cash fees will be paid in Jefferson County, Texas. Seller authorizes the title company to pay the brokers from the Seller's proceeds at closing. (TAR -180i) 4-1-14 Initialed for Identification by Seller and VW-- 6 of 14 NI)OLICed erdlr xtpfo+mia by 7ipLojdx t BOY F4toon M,IQ 8oad, fro ser, MkR!gan 48026 WWWA)�ODLX . aonf 18,70 Lcluisiana, Comrnerciai Contract - imlxoved Property concerning 1870 Louisiana Street,_.,. Beaumont , TX 77`101,. NOTICE., Chapter 62, Texas Property Code, authorizes a broker to secure an earned commission with a lien against the Property. C. The parties may not amend this Paragraph 9 without the written consent of the brokers affected by the amendment. 10. CLOSING: A. The date of the closing of the sale (closing date) will be on or before the later of: (1} W_ . 7 _ days after the expiration of the feasibility period. 0 _ /specific date). (2) 7 days after objections made under Paragraph 6D have been cured or waived. B. if either party tails to close by the closing date, the non - defaulting party may exercise the rernedies in Paragraph 15. C. At closing, Seller will execute and deliver to Buyer, at Seller's expense, a Q general Wspecial warranty deed, The deed must include a vendor's lien if any part of the sales price is financed. Tine deed must convey good and indefeasible title to the Property and show no exceptions other than those permitted under Paragraph 6 or other provisions of this contract, Seller must convey the Property: (1) with no liens, assessments, or Uniform Commercial Code or other security interests against the Property which will not be satisfied out of the sales price, unless securing loans Buyer assumes; (2) without any assumed loans in default; and (3) with no persons in possession of any part of the Property as lessees, tenants at sufferance, or trespassers except tenants under the written leases assigned to Buyer under this contract. D. At closing, Seller, at Seller's expense, will also deliver to Buyer: (1) tax statements showing no delinquent faxes on the Property; (2) a bill of sale with warranties to title conveying title, free and clear of all liens, to any personal property defined as part of the Property in Paragraph 2 or sold under this contract; (3) an assignment of all leases to or on the Property; (4) to the extent that the following items are assignable, an assignment to Buyer of the following iterns as they relate to the Property or its operations: (a) licenses and permits; (b) maintenance, management, and other contracts; and (c) warranties and guaranties; (5) a rent roll current on the day of the closing certified by Seller as true and correct; (6) evidence that the person executing this contract is legally capable and authorized to bind Seller; (7) an affidavit acceptable to the title company stating that Seller is riot a foreign person or, it Seller is a foreign person, a written authorization for the title company to: (i) withhold from Seller's proceeds an amount sufficient to comply applicable tax law; and (ii) deliver the amount to the Internal Revenue Service together with appropriate tax forms; and (8) any notices, statements, certificates, affidavits, releases, and other documents required by this contract, the commitment, or law necessary for the closing of the sale and the issuance of the title policy, all of which must be completed and executed by Seller as necessary. E. At closing, Buyer will: (1) pay the sales price in good funds acceptable to the title company; (2) deliver ovidence that the person executing this contract is legally capable and authorized to bind Buyer; (3) sign and send to each tenant in the Property a written statement that: (a) acknowledges Buyer has received and is responsible for the tenant's security deposit; and (b) specifics the exact dollar amount of the security deposlt; (TAR 1601) 4 -1 -14 Initialed for Identification by Seiler _- and Buyar�. Page 7 of 14 Vrtdaatd will) 2ipForur1,>by zipt,r oix 18070 Fifteen We 4o ad, Fraser; 1. ONan 0026 )sLX ;Iplog(x_cop f f it1 Louisiana, Commercial Contract - Improved Property concerning. 1870 Louisiana Street, Beaumont, TX 77701 (4) sign an assumption of all leases then in effect; and (5) execute and deliver any notices, statements, certificates, or other documents required by this contract or law necessary to close the sale. Unless the parties agree otherwise, the closing documents will be as found in the basic forms in the current edition of the State Bar of Texas Real Estate Forms Manual without any additional clauses. 11. POSSESSION: Seller will deliver possession of the Property to Buyer upon closing and tunding of this sale in its present condition with any repairs Seller is obligated to complete under this contract, ordinary wear acid tear excepted. Any possession by Buyer before closing or by Seller after closing that is riot authorized by a separate written lease agreement is a landlord- tenant at sufferance relationship between the parties. 12, SPECIAL, PROVISIONS: The following special provisions apply and will control in the event of a conflict with other provisions of this contract. (It special provisions are contained in an Addendum, identify the Addendum here and reference the Addendum in Paragraph 22D.) 13, SALES EXPENSES: A. Seller's Expenses: Seller will pay for the following at or before closing: (1) releases of existing liens, other than those liens assumed by Buyer, including prepayment penalties and recording fees; (2) release of Seller's loan liability, if applicable; (3) tax statements or certificates; (4) preparation of the deed and any bill of sale; (5) one -half of any escrow fee; (6) costs to record any documents to cure title objections that Seller must cure; and (7) other expenses that Seller will pay under other provisions of this contract. B. Buyer's Expenses: Buyer will pay for the following at or before closing: (1) all loan expenses and fees; (2) preparation fees of any deed of trust; (3) recording fees for the deed and any deed of trust; (4) premiums for flood and hazard Insurance as may be required by Buyer's lender; (5) one -half of any escrow fee; and (6) other expenses that Buyer will pay under other provisions of this contract. (TAR -1801) 4 -1 -14 Ililflaled for Identification by Seller — __..._ and Pructuced whti zipl'oiaiID by zlpl vgx 58076 Filleen 1,4:In ito3d, frascr, Glich;pan d062G Rti'ar.�inl.adx,cmn Page Q of 14 1870 Lnuisialilt, Commercial Contract - Improved Property concerning ] £t70 Louisiana S tree t_,. - _Beaumont- ,___Tx_ 7.7.7.01 14. PROBATIONS: A, Prorations: (1) Interest on any assumed loan, taxes, rents, and any expense reimbursements from tenants will be prorated through the closing date. (2) 11 file amount of ad valorem taxes for the year in which the sal° closes is not available on the closing date, taxes will be prorated on the basis of taxes assessed in the previous year, If the taxes for the year in which the sale closes vary from the amount prorated at closing, the parties will adjust the prorations when the tax statements for the year in which the sale closes become available, This Paragraph 14A(2) survives closing. (3) If Buyer assurnes a loan or is taking the Property subject to an existing lien, Seller will transfer all reserve deposits held by the lender for the payment of taxes, insurance premiums, and other charges to Buyer at closing and Buyer will reimburse such amounts to Seller by an appropriate adjustment at closing. B, Rollback Taxes: If Seller changes the use of the Property before closing or if a denial of a special valuation on the Property claimed by Seller results in the assessment of additional taxes, penalties, or interest (assessments) for periods before closing, the assessments will be the obligation of Seller. If this sale or Buyer's use of the Property after closing results in additional assessments for periods before closing, the assessments will be the obligation of Buyer. This Paragraph 14B survives closing, C. Rent and Security Deposits: At closing, Seller will tender to Buyer all security deposits and the following advance payments received by Seller for periods after closing: prepaid expenses, advance rental payments, and other advance payments paid by tenants. Rents prorated to one party but received by the other party will be remitted by the recipient to the party to whom it was prorated within 5 days after the rent is received, This Paragraph 14C survives closing, 15, DEFAULT, A. If Buyer fails to comply with this contract, Buyer is in default and Seller, as Seller's sole remedy(ies), may terminate this contract and receive the earnest money, as liquidated damages for Buyer's failure except for any damages resufling from Buyer's inspections, studios or assessments In accordance with Paragraph 7C(4) which Seller may pursue, or (Check if applicable) ® enforce specific performance, or seek such other relief as may be provided by law. B. If, without fault, Seller is unable within the time allowed to deliver the estoppel certificates, survey or the commitment, Buyer may: (1) terminate this contract and receive the earnest money, less any independent consideration under Paragraph 713(1), as liquidated damages and as Buyer's sole remedy; or (2) extend the time for performance up to 15 days and the closing will be extended as necessary. C. Except as provided in Paragraph 15B, if Seller fails to comply with [his contract, Seller is in default and Buyer may: (1) terminate this contract and receive the earnest money, less any independent consideration under Paragraph 7B(1), as liquidated damages and as Buyer's sole remedy; or (2) enforce specific performance, f as Buyer's sole 16. CASUALTY LOSS AND CONDEMNATION: remedy. A. if any part of the Property is damaged or destroyed by fire or other casualty after the effective date, Seller must restore the Property to its previous condition as soon as reasonably possible and not later than the closing date, If, without fault, Seller Is unable to do so, Buyer may: (TAR -1801) 4 -1 -14 Infilaled for Identification by Seller , _______ and BUyerC-5;—f Pago 9 of 14 Produced viv%ziproitrrD by ripLogx 18070 FIRM, W i Road, maser, Michl&) 40928 w m-,Irl QnN.ront 18 70 1 smisialon, Commercial Contract - improved Proporly concorning -__._ 1870 Louisiana Street,.. Beaumont, TX 77701 (1) terminate this contract and the earnest money, less any independent consideration under Paragraph 76(1), will be refunded to Buyer; (2) extend the time for performance up to 15 days and closing will be extended as necessary; or (3) accept at closing: (i) the Property in its damaged condition; (ii) an assignment of any insurance proceeds Seller is entitled to receive along with the insurer's consent to the assignment; and (iii) a credit to the sales price in the amount of any unpaid deductible under the policy for the loss. B. If before closing, condemnation proceedings are commenced against any part of the Property, Buyer may: (1) terminate this contract by providing written notice to Seller within 15 days after Buyer is advised of the condemnation proceedings and the earnest money, less any independent consideration under Paragraph 7B(1), will be refunded to Buyer; or (2) appear and defend the condemnation proceedings and any award will, at Buyer's election, belong to: (a) Seller and the sales price will be reduced by the same amount; or (b) Buyer and the sales price will not be reduced. 17. ATTORNEY'S FEES: if Buyer, Seller, any broker, or the title company is a prevailing party in any legal proceeding brought under or with relation to this contract or this transaction, such party is entitled to recover from the non- prevailing parties all costs of such proceeding and reasonable attorney's fees. This Paragraph 17 survives termination of this contract. 18. ESCROW: A. At closing, the earnest money will be applied first to any cash down payment, then to Buyer's closing costs, and any excess will be refunded to Buyer, If no closing occurs, the title company may require payment of unpaid expenses Incurred on behalf of the parties and a written release of liabi1ty of the title company frorn all parties. B. If one party makes written demand for the earnest money, the title company will give notice of the demand by providing to the other party a copy of the demand. If the title company does not receive written objection to the demand from the other party within 15 days after the date the title company sent the demand to the other party, the title company may disburse the earnest money to the party making demand, reduced by the amount of unpaid expenses incurred on behalf of the party receiving the earnest money and the title company may pay the same to the creditors. C. The title company will deduct any independent consideration under Paragraph 7B(1) before disbursing any earnest money to Buyer, and will pay the independent consideration to Seller. Q. If the title company complies with this Paragraph 18, each party hereby releases the title company from all claims related to the disbursal of the earnest money. E. Notices under this Paragraph 18 must be sent by certified mail, return receipt requested. Notices to the title company are effective upon receipt by the title company. P. Any party who wrongfully fails or refuses to sign a release acceptable to the title company within 7 days after receipt of the request will be liable to the other party for liquidated damages In an amount equal to the sum of: (I) three times the arnounl of the earnest money; (ii) the earnest money; (iil) reasonable attorney's fees; and (iv) all costs of suit. G. ❑ Seiler ❑ Buyer intend(s) to complete this transaction as a part of an exchange of like -kind properties in accordance with Section 1031 of the Internal Revenue Code, as amended. All expenses in connection with the contemplated exchange will be paid by the exchanging party. The other party will not Incur any expense or liability with respect to the exchange, The parties agree to cooperate fully and in good faith to arrange and consummate the exchange so as to comply to the maximum extent (TAR--, 801) 4 -1.14 imlialed for identification by Seller ___ and BuyeK;2'_'`- _.. _ Page 10 of 14 Prw; UCtil with :ipfuunE by iploplz 1$070 �i11CGn i.'rlU Road, Plnsor, tAKYdpan 4002E vrx zyigils,coi� 1870 Louisiana, Colnmordal Contract - improved Froporty concerning _____1874 Louisiana Street, BeapmontL TX_77741 feasible with the provisions of Section 1031 of the Internal Revenue Code, The other provisions of this contract will not be affected in the event the contemplated exchange falls to occur, If4-9 -. aR ^Trim- r��].�n-rrpii�s.�zp —,_��� �'/� ��� =�$�. t %c,��e best el v0. -filer's k owief��C H4-BR>°�36� p�p�r�p(',��iy, y� 0 A- VVIIlil 7J- f-[pC- LTVrjjrTi -Q�j� fopelSal Af epl as slated In !he�a6he-f GOffi TIereial f�it�pe�t�y- Getman- �tetet�ent- {�A-Fi- 4,49&}; ❑ & E-X79ept -rte• 9i&F&i9e -pr6Y!EI lF1 41115 �1 e# { } er�y`st�bst #aee st e#�rree;- pita, Was , ga, et^-l"reve e*r,• {�?i' Q�ter�eE#- tiHga4+e+� ee►idert�at+e , rty; ; f4) whelheF e P5epefty is of bias -fie efl used fef the sta—va — elisposal ef haix-aFeleus materi r ox4e waste; -,,a site et- landh",f= any- cmderg ffe�, +de thef q ew- exist - -e �L, {�,,^ FOPe4yi, ""J "�as as by f.,�,e Fat ., sl te4e�` He ems,- -e 4heT2f�pe `i, (�} a'yrt�sent ter' ; ftfi -eeate , leg a -#fat avetrle4 rr►atertai+p� at�d detrIFflentai"fleet the erdi+�r� -ese eN#�ty ( a► it+e ( -0eserib ar�j xe+ lac s to (� p{t -#-ac ati edderidtt j 20. NOTICES: All notices between the parties under this contract must be in writing and are effective when hand - delivered, mailed by certified mail return receipt requested, or sent by facsimile transmission to the parties addresses or facsimile numbers stated In Paragraph 1. The parties will send copies of any notices to the broker representing the party to whom the notices are sent, ❑ A. Seller also consents to receive any notices by e -mail at Seller's e -mail address slated in Paragraph 1. ❑ B. Buyer also consents to receive any notices by e -mail at Buyer's e -mail address stated in Paragraph 1, 21. DISPUTE RESOLUTION: The parties agree to negotiate in good faith in an effort to resolve any dispute related to this contract that may arise. If the dispute cannot be resolved by negotiation, the parties will submit the dispute to mediation before resorting to arbitration or litigation and will equally share the costs of a mutually acceptable mediator. This paragraph survives termination of this contract. This paragraph does not preclude a party from seeking equitable relief from a court of competent jurisdiction. 22. AGREEMENT OF THE PARTIES: A. Tnis contract is binding on the parties, their heirs, executors, representatives, successors, and permitted assigns. This contract is to be construed in accordance with the laws of the State of Texas. If any term or condition of this contract shalt be held to be invalid or unenforceable, the remainder of this contract shall not be affected thereby. B, This contract contains the entire agreement of the parties and may not be changed except in writing. C. If this contract is executed In a number of identical counterparts, each counterpart is an original and all counterparts, collectively, constitute one agreement. (TAR -1801) 4.1.14 Initialed for Identification by Seller and Boydr- t' rcxoctxtwid�rippOn�iIDbyzi�ka��z f6070F�1ieBnld :7eROaA,ftsser,IAFhklan4A076 ]'(WLZjQ irrnm Page 11 of 14 1870 r_ouisiuna, ConlmeT6W Con tract -Improved Property concerning 1B70._Louisiana Street Beaumont TX 77701 D. 0 0 ■ Addenda which are part of this contract are: (Check all that apply,) (1) Property Description Exhibit identified in Paragraph 2; (2) Commercial Contract Condominium Addendum {TAR - 1930); (3) Commercial Contract Financing Addendum (TAR - 1931); (4) Commercial Property Condition Statement (TAR- 1408); (5) Commercial Contract Addendum for Special Provisions (TAR - 1940); (6) Addendum for Seller's Disclosure of Information on Lead -Based Paint and Lead -Based Paint Hazards (TAR - 1906); (7) Notice to Purchaser of Real Property in a Water District (MUD); (8) Addendum for Coastal Area Property (TAR - 1915); (9) Addendum for Property Located Seaward of the Guff Intracoastal Waterway (TAR - 1916); (10) Information About Brokerage Services (TAR - 2501); and (Note: Counsol for the Texas Association of REAL TORSO (TAR) has delermined that any of the foregoing addenda which are promulgated by the Texas Real Estate Commission (TREC) or publisher! by TAN are appropriate for use with this form.) E, Buyer ® may ❑ may not assign this contract. If Buyer assigns this contract, Buyer will be relieved of any future liability under this contract only If the assignee assumes, in writing, all of Buyer's obligations under this contract. 23. TIME: Time is of the essence in this contract. The parties require strict compliance with the times for performance. If the last day to perform under a provision of this contract falls on a Saturday, Sunday, or legal holiday, the time for performance Is extended until the end of the next day which is not a Saturday, Sunday, or legal holiday. 24. EFFECTIVE DATE: The effective date of this contract for the purpose of performance of all obligations is the date the title company receipts this contract after all parties execute this contract. 25, ADDITIONAL NOTICES: A, Buyer should have an abstract covering the Property examined by an attorney of Buyer's selection, or Buyer should be furnished with or obtain a title policy. B. If the Property is situated in a utility or other statutorily created district providing water, sewer, drainage, or flood control facilities and services, Chapter 49, Texas Water Code, requires Seller to deliver and Buyer to sign the statutory notice relating to the tax rate, bonded indebtedness, or standby fees of the district before final execution of this contract. C. Notice Required by §13.257, Water Code: "The real property, described below, that you are about to purchase may be located in a certificated water or sewer service area, which is authorized by law to provide water or sewer service to the properties in the certificated area. If your property is located in a certificated area there may be special costs or charges that you will be required to pay before you can receive water or sewer service. There may be a period required to construct lines or other facilities necessary to provide water or sewer service to your property. You are advised to determine if the property is in a certificated area and contact the utility service provider to determine the cost that you will be required to pay and the period, If any, that is required to provide water or sewer service to your property. The undersigned purchaser hereby acknowledges receipt of the foregoing notice at or before the execution of a binding contract for the purchase of the real property described in the notice or at closing of purchase of the real property." The real property is described in Paragraph 2 of this contract. 17). If the Property adjoins or shares a common boundary with the tidally influenced submerged lands of the state, §33,135, Texas Natural Resources Code, requires a notice regarding coastal area property to be included as part of this contract. (TAR- 1801) 4 1 14 Initialed for Identification by So11or and 13uy Page 12 of 14 i-rodx,d w?ih IipFOrlY0 by 77p3. no! g (8070 r"d;em rd.la IIuad, Dasur, Mlchlgay, 4802G rmw.¢rolrn lx,cum 1870 Louisiana, Commercial Contract - Improved Properly concerning „__ 1870 Louisiana Street, Beaumont,, TX 77701 B. If the Property is located seaward of the Gulf Intracoastal Waterway, §61.025, Texas Natural Resources Code, requires a notice regarding the seaward location of the Property to be Included as part of this contract. F. If the Property Is located outside the limits of a municipality, the Property may now or later be included in the extra - territorial jurisdiction (ETJ) of a municipality and may now or later be subject to annexation by the municipality. Each municipality maintains a map that depicts its boundaries and ETJ. To determine if the Property is located within a municipality's ETJ, Buyer should contact all municipaiitles located in the general proximity of the Property for further information. G. If apartments or other residential units are on the Property and the units were built before 1978, federal law requires a lead -based paint and hazard disclosure statement to be made part of this contract. H. Section 1956.154, Occupations Code requires Seller to provide Buyer a copy of ally mold remodiation certificate Issued for the Property during the 5 years preceding (tie date the Seller sells the Property, I. Brokers are not qualifled to perform property inspections,.surveys, engineering studies, environmental assessments, or Inspections to determine compliance with zoning, governmental regulations, or laws, Buyer should seek. experts to perform such services. Buyer should review local building codes, ordinances and other applicable laws to determine their effect on the Property. Selection of experts, inspectors, and repairmen its the respbnslblliky of Buyer and not the brokers. Brokers are not qualified to determine tho credit worthiness of the parties, 26, CONTRACT AS OFFER: The execution of this contract by the first party constitute$ an offer to buy or sell the Property, Unless the other party accepts the offer by 5:00 p.m., In the time zone in which the Property is located, on ___._ -_ , the offer will lapse and become null and void. READ THIS CONTRACT CAREFULLY, The brokers and agents make no representation or recommendation as to the legal sufficiency, legal effect, or lax consequences of this document or transactlon, CONSULT your attorney BEFORE signing. Seller: City of Beaumont Buyer: MG Real Proriertios, Ltd, By: le Kaye *__ By: By (signa(ure): Printed Name: Kyle Hayes ._ Tilie;city Manager _ BY: Noder.n_ Industrial services Its (3 P. By (signature):- ...._" Primed Name: Brian B. Bonner By: By (signature): Prbtfed Naive: -- Printed Name: iIIPr: -- - - - - -- Title: (VAR-Ml) 4 -1.14 Page 13 of 14 F'�o3ucr..,i ,rill 7y >Famyby z{pltgiw 180 /Or4leon U�te Road, ftasar, N:clvgxr, X6026 w;na. >Ip{u�lr wn, 1870 Louisinw, Commercial Conlracl - improved Properly concerning _ 1670 Louisiana Street Beaumont, TX 77701 AGREEMENT" BETWEEN BROKERS (use only It Paragraph 9B(r) is effective) Principal Broker agrees to pay (Cooperating Broker) a fee when the Principal Broker's fee is received. The fee to be paid to Cooperating Broker will be: ❑ $ , or O ____.__. % of the sales price, or D % of the Principal Broker's fee. The title company is authorized and directed to pay Cooperating Broker from Principal Broker's fee at closing. This Agreement Between Brokers supersedes any prior offers and agreements for compensation between brokers, Principal Broker: Cooperating Broker By By: .......... Seller's attorney: Address: Phone 8 Fax:- - E-mail: Seller's attorney requests copies of documents, notices, and other information: O the title company sends to Seller. ❑ Buyer sends to Seller, The title company acknowledges receipt of: I I A. the contract on this day 0 B. earnest money in the amount of on._ Title company: By: Assigned file number ((iFti): ATTORNEYS Buyer's attorney: Address: Phone & Fax: E -mail: Buyer's attorney requests copies of documents, notices, and other information: D the title company sends to Buyer, D Seller sends to Buyer. ESCROW RECEIPT (effective date); in the form of Address: Phone & Fax: E -mail: JAR -1801) 4.1-14 �..�,. Page 14 of 44 pimuced wnh z;proim8D4y eptog'x IOo7o Rhea,, Moe Road, Rnsar, m.Uc gan 4002E t- uuintooix con 38*101.011isiano, E,XHIRIT A All that certain tract or piece of land, being parts of Lots One (1), Two (2) and Tliree (3), Block Seven (7) of the unrecorded plat of the McFaddin Heights Addition to the City of Beaumont, Jeffersou County, Texas, anti being located at the intersection of Becch Avenue and Averill Street, and being more fully bounded and described as follows; Beginning at a Texas Highway Department concrete marker which marks the intersection of the East line of Averill Street with the South line of Beech Avenue; Thonce East along the South line of Beech Avenue and also along the North line of Lot One (1), Block Seven (7) of the McFaddin Heights Addition for a distance of sixty -one a,xl fifty -nine hund,-cdtlts (61.59) feet to the Northeast corner of this tract, said corner lies one (1) foot East of a five- eights (5/8) inch rod for reference point; Thence South at right angle to Beech Avenue and along the East side of this tract for a distance of one hundred ten and sixty hundredths (110.60) feet to a five- eights (5/8) inch rod marking the Southeast corner of this tract; Thence West at right angle to the last described line for a distance of sixty -one and fifty - nine hundredths (61.59) feet to a five- eights (5/8) inch iron rod in the East line of Averill Street, said rod marks the Southwest corner of this tract; Thence North along the Last line of .Averill Street and at riglit angle to the last described line for a distance of one hundred ten and sixty hundredths (110.60) feet to the place of beginning; It being the West sixty -one and fifty -nine hundredths (61.59) feet ot'Lots Ot>e (1) and Dmo (2) and the West sixty -one and fifty -nine Iundredths (61.59) feet of the North ten and sixty hundredths (10.60) feet of Lot Three (3), Block Seven (7) of the McFaddin Heights Addition to the City of Beauutant, Containing. 156378 acres, more or less. NOTICE TO PURCHASERS The real p ►'openly described below, which you are about to purchase, is located in Jeifersoll County Drainage District No, G. The District has taxing authority separate from any other taxing authorily and may, su'!)Jeet to vote)' approval, Issue all illllimited rate of tax in payment of such bonds, As oC this crate, the rate of taxes levied by the District on real property located in the District is 22.0587 cents on each $100 of assessed valuation, The total amount of bonds that have been approved by the voters and which nay be issued by the District (excluding refunding bonds and any bonds or portion of bonds payable solely from revenues received or expected to be received pursuant to a contract with a governmental entity) is $0; however, contract revenue refunding bonds have been approved by the District's Board in fire following original amounts Series 2003 - $4,995,000. The aggregate initial principal amount of all bonds of the District payable in whole or part from taxes (excluding refunding bonds and any bonds or portion of bonds Payable solely from revenues received or expected to be received pursuant to a contract with a governruental entity) that have been previously issued is $0, however, the current principal amounts of contract revenue refunding bonds outstanding arc as fbilows: Series 2003 Contract Revenue Refintiding Bonds - $950,000. The contract revenue refunding bonds are serviced through tuxes collected for maintenance and operating. Fonds from maintenance and operating arc transferred to debt service for annual installments toward payment of the contract revemie refunding bonds. No separate tax is collected for contract revenue refunding bonds. The District does not impose a standby fee. The purpose of this District is to provide drainage or flood control facilities and services within the District through the issuance of bonds payable in whole or in part front property taxes. The cost of these utility facilities is not included in the purchase price of your property, and these utility facilities are owned or to be owned by the District. Date ,me legal description of the property which you are acquiring is as follows: (Seller) PURCHASER IS ADVISED THAT `I'HF INFORMA'T'ION SHOWN ON THIS FORM IS SUBJECT TO CHAN {: E I3Y THE DISTRICT AT ANY TIME. THE DISTRICT ROUT[Nf;LY ESTABLISHES TAX. RATES DURING THE MONTHS OF SEPTEMBER THROUGH DECEMBER OF I✓ACII YEAR, EFFECTIVE FOR THE YEAR IN WIII(AH THE TAX RATES ARE APPROVED BY THE DISTRICT, PURCHASER iS ADVISED TO CONTACT THE DISTRICT TO DETERMINE THE' STATUS OF ANY CURRENT OR PROPOSED CHANGES TO THE INFORMATION SHOWN ON "I HIS DORM. The undersigned purchaser hereby acknowledges receipt of the foregoing notice at or prior to execution of a binding contract for 01C plll'C11aSe of the real pr'oper'ty described in such notice or at clOsillg of purchase of the. real property. Date (Buyer) THE STATE OF TEXA S COUNTY OF This instrument was acknowledged before we on , by Notary Public, State of Texas THE STA'T'E OF TEXAS COUNTY OF Thk instrument was aeknowledged before me on , by AAcr' recording, returrr to; Notary Public, State of Texas G �' Approved by the Texas Real Estate Commission for Voluntary Use 10 -10 -11 ... Texas law requires all real estate licensees to give the following Information about brokerage services to prospective buyers, tenants, sellers and landlords. orafrou"r Information About Brokerage services efore working with a real estate broker, you should know that the duties of a broker depend on whom the broker represents. If you are a prospective seller or landlord (owner) or a prospective buyer or tenant (buyer), you should know that the broker who lists the property for sale or lease is the owner's agent. A broker who acts as a subagent represents the owner in cooperation with the listing broker. A broker who acts as a buyer's agent represents the buyer. A broker may act as an intermediary between the parties if the parties consent in writing. A broker can assist you in locating a property, preparing a contract or lease, or obtaining financing without representing you. A broker Is obligated by law to treat you honestly, IF THE BROKER REPRESENTS THE OWNER: The broker becomes the owner's agent by entering into an agreement with the owner, usually through a written - listing agreement, or by agreeing to act as a subagent by accepting an offor of subagency from the listing broker. A subagent may work in a different real estate office. A listing broker or subagent can assist the buyer but does not represent the buyer and must place the interests of the owner first. The buyer should not tell the owner's agent anything the buyer would not want the owner to know because an owner's agent must disclose to the owner any material information known to the agent, IF THE BROKER REPRESENTS THE BUYER: The broker becomes the buyer's agent by ontering into an agreement to represent the buyer, usually through a written buyer representation agreement. A buyer's agent can assist the owner but does not represent the owner and must place the interests of the buyer first. The owner should not tell a buyer's agent anything the owner would not want the buyer to know because a buyer's agent must disclose to the buyer any material information known to the agent. IF THE BROKER ACTS AS AN INTERMEDIARY: A broker may act as an Intermediary between the Parties if the broker complies with The Texas Real Estate License Act. The broker must obtain the written consent of each party to the transaction to act as an intermediary. The written consont must state who will pay the broker and, in conspicuous bold or underlined print, set forth the broker's obligations as an intermediary. The broker is required to treat each party honestly and fairly and to comply with The Texas Real Estate License Act. A broker who acts as an intermediary in a transaction: (1) shall treat all parties honestly; (2) may not disclose that the owner will accept a price less than the asking price unless authorized in writing to do so by the owner; (3) may not disclose that the buyer will pay a price greater than the price submitted in a written offer unless authorized in writingg to do so by the buyer; and (4) may not disclose any confidential information or any information that a party specifically instructs the broker in writing not to disclose unloss authorized in writing to disclose the information or required to do so by The Texas Beal Estate License Act or a court order or if the information materially relates to the condition of the property. With the parties' consent, a broker acting as an intermediary between the parties may appoint a person who is licensed under The Texas Real Estate License Act and associated with the broker to communicate with and carry out instructions of one party and another person who is licensed under that Act and associated with the broker to communicate with and carry out instructions of the oche, party. If you choose to have a broker represent you, you should enter into a written agreement with the broker that clearly establishes the broker's obligations and your obligations, -l'ho, agreement should state how and byy whom tho broker will be paid. You have the right to cl7ooso the typo of representation, if any, you wish to receive. Your payment of a fee to a broker does not necessarily establish that the broker represents you. If you have any questions regarding the duties and responsibilities of the broker, you should resolve those questions before proceeding!. Roal estate licensee asks that you acknowledge receipt of this information about brokerago sorvfces for the licensee's records. buyer, Seller, landlord or Ienani -- `— Da e 14G Real Properties, Ltd. Toxas Real Estalo eiokors and Salesporsons are liconsed and regulated by lhe'rexas Real Esiato commission (TREC). 11 you have a quoslion or complahtt regarding a rea3 oslalo licensee, ynu shoos.1 contact TREC at P.O. Box 12100, Aus€in, Toxas Z8711-2 18 0 , 512. 936.3000 (http-A "wi.lroc.loxas_gov) (TAR -2501) 10 -10 -11 TREC No. Of -1C NAl 1'rrkccler, 470 Orleans Strcct, 120t Moor Beaumont, Tx 77701 Phone; 409 -899 -3300 Fax: 409- 899.3301 Erica Goss 1873 Louisiana, Pcaduced ttiith ZlpForm2Dby zipLogix 18070 Fifteen tA,Ie Hoad, Fraser, t llchlgan 40026 mwvAp'..wix.corn Approved by the Texas Real Estate Commission for Voluntary Use == Texas late requires all real estate licensees togivo the following information about broAeragge services to prospective buyers, tenants, sellers and fandlords. nr� or,uanr Information About Brokerage Services efore working with a real estate broker, you should know that the duties of a broker depend on whom the broker represents. It you area prospective seller or landlord (owner) or a prospective buyer or tenant (buyer), you should know that the broker who lists the property for sale or lease is the owner's agent, A broker who acts as a subagent represents the owner in cooperation with the listing broker. A broker who acts as a buyer's agent represents the buyer. A broker may act as an intermediary between the parties if the parties consent In writing. A broker can assist you in locating a property, preparing a contract or lease, or obtaining financing without representing you. A broker is obligated by law to treat you honestly. IF THE BROKER REPRESENTS THE OWNER: The broker becomes the owner's agent by entering into an agreement with the owner, usually through a written - listing agreement, or by agreeing to act as a subagent " accepting an offer of subagency froth the listing broker, A subagent may work in a different real estate office. A listing broker or subagent can assist the buyer but does not represent the buyer and must place the interests of the owner first. The buyer should not tell the owner's agent anything the buyer would not want the owner to know because an owner's agent must disclose to the owner any material information known to the agent. IF THE BROKER REPRESENTS THE BUYER: The broker becomes the buyer's agent by entering into an agreement to represent the buyer, usuallyy through a written buyer representation agreement. A buyers agent can assist the owner but does not represent the owner and must place the Interests of the buyer first. The owner should not tell a buyer's agent anything the owner would not want the buyer to know because a buyer's agent must disclose to the buyer any material information known to the agent. IF THE BROKER ACTS AS AN INTERMEDIARY: A broker may act as an intermediary between the parties If the broker compiles with The Texas Real Estate License Act. The broker must obtain the written consent of each party to the transaction to act as an 10 -10 -11 intermediary. The written consent must state who will pay the broker and, in conspicuous bold or underlined print, set forth the broker's obligations as an intermediary. The broker is required to treat each party honestly and fairly and to comply with The Texas Real Estate License Act. A broker who acts as an intormodiary in a transaction: (1) shall treat all parties honestly; (2) may not disclose that the owner will accept price less than the asking price unless authorized writing to do so by the owner; (3) may not disclose that the buyer will pay a price greater than the price submitted in a written offer unless authorized In writing to do so by the buyer; and (4) may not disclose any confidential information or any information that a party specifically Instructs the broker in writing not to disclose unless authorized in writing to disclose the information or required to do so by The Texas Real Estate License Act or a court order or if the information materially relates to the condition of the property. With the parties' consent, a broker acting as an intermediary between the parties may appoint a person who is licensed under The Texas Real Estate License Act and associated with the broker to communicate with and carry out instructions of one party and another person who is licensed under that Act and associated with the broker to communicate with and carry out instructions of the other party. If you choose to have a broker represent you, you should enter into a written agreement with the broker that clearly establishes the broker's obligations and your obligations. The agreement should state how and by whom the broker will be paid. You have the right to choose the type of representation, if any, you wish to receive. Your payment of a fee to a broker does not necessarily establish that the broker represents you. If you have any questions regarding the duties and responsibilities of the broker, you should resolve those questions before proceeding. Real estate licensee asks that you acknowledge rocolpt of this Information about brokerage services for the licensee's records. 0uyer, Seller, Landlord or TenanF Date City of Beaumont j Texas Real Estale Brokers and Salespersons are licensed end regulated by the Texas Real Estate Commission (TREC ). If you have a quostion or comnlaini regardino a real esiale licensee, you shoutd contact TREC at P.O. Box f21e6, Ausfin. Toxas 78711 -2f 08 , 512 -938 3000 (http! /un1nv.treatexas.gov) (TAR -2501) 10 -10 -11 NAi Wiicelcr, 470Oricans Streci, 12th Floor r3enumont, Tx 77701 Phune: 409.899.3300 Fax.: 409.899.3301 Erica (loss Yroducodtvith GipFornrt�'by zipLoglx I007U FIIICUaNIIn Road, Flasar,Michlgan 48026 �wrvra]ot.00lx.ccsrn TREC No. OP -K 1570 Louisiana, 200 1 itor,