Agenda - Council - 05/30/2006 - Special

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DRAFT Date: May 16, 2006 Page 2. of 3 in the purchase price of the property, which increase shall be the same as the estimated amount of the assessment; or lc) declare this Purchase Agreement terminated by written notice to Seller. If Buyer terminates this Agreement, Buyer and Seller shaft immediately sign a cancellation of purchase agreement. Seller shall pay on date of dosing any deferral real estate taxes or special assessments payment of which is required as a result of the ciosing of this sale. PRORATIONS: All items customarily prorated and adjusted in connection with the closing of the sale of the property herein including but net limited to rents, operating expenses, interest on any debt assumed by Buyer, shall be proprated as of the date of closing. It shall be assumed that Buyer will own the property for the entire date of closing. DAMAGE TO REAL PROPERTY: If there is any loss to the property between the date hereof and the date of closing, for any reason, the risk of loss shall be to the Seller. If the property is destroyed or substantially damaged before the closing, this Purchase Agreement shall terminate, at Buyer's option, if Buyer gives written notice to Seller of such termination within thirty (30) days of the damage. Upon said termination, Buyer and Seller shall immediately sign a cancellation of purchase agreement. 8 EXAMINATION OF TITLE; Within a reasonable time after acceptance of this Purchase Agreement, Seller shall provide evidence of title to Buyer or Buyer's designated title service provider, which shall include proper searches covering bankruptcies, state and federal judgments and liens, and levied and pending special assessments, as follows: IF THE PROPERTY IS ABSTRACT, Seller shall provide either (al a commitment for an owner's policy of title insurance on a current ALTA form issued by an insurer licensed to write title insurance in Minnesota and Seller shall pay the costs of evidence of title for such title insurance policy, and Buyer shall pay the premium for any owner's policy or lender's policy issued by the title insurance company, the title examination fee and the fee for any endorsements or other coverages requested by Buyer; or (bi Abstract of Title certified to date. Seller shall pay for all abstracting fees and surrender any abstract in Seller's possession or control to Buyer at Closing. If THE PROPERTY IS TORRENS: Seller shall provide, at Buyer's option and request, either: (al a Registered Property Abstract certified to date; or (bi a commitment for an owner's policy of title Insurance on a current ALTA form issued by Insurer licensed to write title insurance in Minnesota. Seller shall be responsible to pay, under either option, only those costs necessary to prepare the Registered Property Abstract or commitment. Buyer shall, at Buyer's option, pay for either an attorney's title opinion or the title insurance premium (for bo. th an owner's policy and any lender's policy and the examination fee, together with the costs for any endorsements or other coverages requested by Buyer). Buyer shall have ten (10) business days after receipt of the Abstract of Title, Registered Property Abstract, 0¢ title insurance commitment to provide Seller, or licensee representing or assisting Seller, with written objections to title. Buyer shall be deemed to have waive any title objections not made within such ten (10) day period, except that this shall not operate as a waiver of Seller's covenant to deliver a Warranty Deed, if a Warranty Deed is specified in this Purchase Agreement. Seller shall use Seller's best efforts to correct any title objections noted by Buyer and to provide marketable title by the date of Closing. In the event Seller has not cured the title objections or otherwise provided marketable title by the date of Closing, Seller shall have an additional thirty (30) days to correct the title objections or otherwise make title marketable. Buyer may waive title objections or other defects by written notice to Seller or licensee representing or assisting Seller. In addition to the thirty (30) day extension, Buyer and Seller may by mutual agreement further extend the Closing date. Lacking such extension, either party may declare this Purchase Agreement terminated and neither party shall be liable for damages to the other. Buyer and Seller shall immediately sign a cancellation of purchase agreement directing all earnest money paid hereunder to be refunded to Buyer. 9. POSSESSION: Seller shall deliver possession of the property on the date of Closing. 10. REPRESENTATIONS AND WARRANTIES: See attached Addendum. 11. TIME IS OF THE ESSENCE FOR ALL PROVISIONS OF THIS CoNTRAcT. 12. SELLER CERTIFIES THAT SELLER DOES DOES NOT KNOW OF A PRIVATE SEWER SYSTEM -217-