Due Diligence for Income Producing Properties Appendix 17-1

[Pages:203]Due Diligence for Income Producing Properties

Appendix 17-1

Article

Appendix

Pages

Feasibility Study License . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Appendix 17-3 Real Estate Sales Contract (State Bar Form) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Appendix 17-5 Unimproved Property Contract - TREC No. 9-4 (Ed. 11-08-99) . . . . . . . . . . . . . . . . . . . . Appendix 17-29 Improved Property Addendum to TREC No. 9-4 (Ed. 11-08-99) Contract . . . . . . . . . . . . Appendix 17-38 Commercial Improved Property Earnest Money Contract . . . . . . . . . . . . . . . . . . . . . . . . Appendix 17-53 Commercial Property Condition Statement (TAR Form 053) . . . . . . . . . . . . . . . . . . . . . . Appendix 17-66 Memorandum on Commercial Improved Property Earnest Money Contract . . . . . . . . . . Appendix 17-69 Contract Sale Calendar . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Appendix 17-73 Confidentiality Agreement as to Prospects for Acquisition of Interests . . . . . . . . . . . . . . Appendix 17-75 Assignment of Earnest Money Contract . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Appendix 17-79 Planning Commission and Standing Committees Roster . . . . . . . . . . . . . . . . . . . . . . . . . Appendix 17-96 Request for Zoning Verification Letter . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Appendix 17-98 Zoning Comfort Letters from City . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Appendix 17-99 Summary of Zoning Classifications . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Appendix 17-106 Zoning Map . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Appendix 17-110 Ad Valorem Tax Data Available on the Web . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Appendix 17-112 Architect's Certificate of Compliance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Appendix 17-116 Synopsis of Loan Terms . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Appendix 17-117 Changes Made/not Made to [Lender 1's] Loan Documents . . . . . . . . . . . . . . . . . . . . . . Appendix 17-120 Legal Opinion Letter Requirements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Appendix 17-123

Due Diligence for Income Producing Properties

Appendix 17-2

Legal Opinion Requirements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Appendix 17-126 Opinion Letter Format . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Appendix 17-131 Opinion Letter -Qualifications to Be Added to Legal Opinions . . . . . . . . . . . . . . . . . . . Appendix 17-139 Zoning Opinion Letter Format . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Appendix 17-144 Purchaser's Title Objections Letter . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Appendix 17-147 Buyer's Closing Checklist . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Appendix 17-153 Buyer's Closing Instructions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Appendix 17-165 Closing Agreement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Appendix 17-175 Statement of Policy Regarding Lawyers' Opinion Letters about Zoning . . . . . . . . . . . . Appendix 17-178

2

Due Diligence for Income Producing Properties

Feasibility Study License

Appendix 17-3

This Feasibility Study License (the "License") is executed between _____________________________, as Seller, and ____________________________________, as Prospective Buyer in order to permit ("Prospective Buyer") to make various Inquiries, Tests and Studies as to all or portions of the property described in Exhibit A hereto (the "Property").

1. Inquiries. At any time prior to __________________ (the "Investigation/Feasibility Review Period") while this License is in full force and effect, and at Prospective Buyer's sole expense, Prospective Buyer or Prospective Buyer's authorized agents shall have the right to make the following inquiries ("Inquiries"): Prospective Buyer may enter upon the Property for purposes of making surveys and site analyses, test borings, engineering studies, wetland studies, soil borings, soil analysis, water and sewer location availability studies, environmental studies, market studies (including costs, marketing or other analysis in order to determine the feasibility of its project), as Prospective Buyer may deem necessary ("Tests and Studies"), and to contact governmental authorities.

2. Prospective Buyer's INDEMNITY and Restoration Obligations. Prospective Buyer shall not cause or permit damage or injury to the Property, and upon termination of this License, Prospective Buyer shall promptly restore the surface of the Property to the condition existing prior to the Tests and Studies conducted pursuant to this License and compensate Seller for any crop-related damages, if any, and such obligation shall survive the termination of this License. PROSPECTIVE BUYER SHALL INDEMNIFY, HOLD HARMLESS, AND DEFEND SELLER FROM AND AGAINST ALL LIENS, CLAIMS, CAUSES OF ACTION, SUITS, LIABILITIES, COSTS, DAMAGES, AND EXPENSES (INCLUDING ATTORNEYS' FEES AND COURT COSTS), INCLUDING DEATHS, DISEASE OR SICKNESS OR OR INJURIES TO EMPLOYEES OF PROSPECTIVE BUYER OR OTHER PERSONS, OR DAMAGES TO PROPERTY, DIRECTLY OR INDIRECTLY, PROXIMATELY OR REMOTELY, ARISING OUT OF, RESULTING FROM OR RELATING, IN WHOLE OR IN PART, TO THE ACTS OR OMISSIONS OF PROSPECTIVE BUYER OR ITS AGENTS, EMPLOYEES OR INDEPENDENT CONTRACTORS UNDER THE PROVISIONS OF THIS LICENSE (THE "INDEMNIFIED LIABILITIES"), EVEN IF SUCH INDEMNIFIED LIABILITIES ARISE FROM OR ARE ATTRIBUTABLE TO THE CONCURRENT NEGLIGENCE OR STRICT LIABILITY OF SELLER, AND SUCH INDEMNIFICATION SHALL SURVIVE THE TERMINATION OF THIS LICENSE, OR THE CLOSING OF ANY PURCHASE OF THE PROPERTY BY PROSPECTIVE BUYER, AS THE CASE MAY BE. THE INDEMNITY AND OBLIGATIONS OF PROSPECTIVE BUYER IN THIS

3

Due Diligence for Income Producing Properties

Appendix 17-4

PARAGRAPH 2 ARE REFERRED TO IN THIS LICENSE AS THE "PROSPECTIVE BUYER'S INDEMNITY AND RESTORATION OBLIGATIONS."

3. Not a Sales Contract or Offer. Seller may at anytime and without liability to Prospective Buyer terminate this License. Seller is not obligated to sell the Property to Prospective Buyer and Prospective Buyer is not obligated to buy the Property.

4. Capacity of Seller. The person executing this License and any of the documents at the Closing on behalf of Seller may execute the same in her capacity as Trustee, and in no other capacity whatsoever, and such person shall have no personal liability under this License or under any of such documents. All liability of Seller shall be limited solely to the assets of such Trust at the time any such liability may be established. The provisions of this Paragraph shall survive the Closing.

6. Confidentiality. Prospective Buyer will promptly furnish Seller with a copy of all Inquiries, Tests or Studies made of the Property for or by Prospective Buyer. Prospective Buyer will keep the contents or results of Inquiries, Tests or Studies confidential (except to the extent required to be divulged under the Open Records Act of the State of Texas), unless Seller's written consent to divulge the Inquiries, Tests, or Studies is obtained from Seller, or unless required by law or unless Prospective Buyer buys the Property.

Dated ______________.

SELLER:

PROSPECTIVE BUYER:

(Name) (Title)

(Name) (Title)

4

Due Diligence for Income Producing Properties

Appendix 17-5

Real Estate Sales Contract (State Bar Form)

This contract to buy and sell real [include if applicable: and personal] property is between Seller and Buyer as identified below and is effective on the date ("Effective Date") of the last of the signatures by Seller and Buyer as parties to this contract and by Title Company to acknowledge receipt of the Earnest Money. Buyer must deliver the Earnest Money to Title Company and obtain Title Company's signature before the Earnest Money Deadline provided in section A.1. for this contract to be effective. If the Earnest Money is paid by check and payment on presentation is refused, Buyer is in default.

Seller:

Address:

Phone:

Fax:

Type of entity:

Seller's Attorney:

Address:

Phone:

Fax:

Seller's Broker:

Address:

Phone:

Fax:

Buyer:

5

Due Diligence for Income Producing Properties

Appendix 17-6

Address:

Phone:

Fax:

Type of entity:

Buyer's Attorney:

Address:

Phone:

Fax:

Buyer's Broker:

Address:

Phone:

Fax:

Pro pert y:

The land commonly known as [describe property] and more fully described in Exhibit A ("Land") [include the following phrases that are applicable, tailoring punctuation and conjunctions as necessary: , together with improvements to the Land ("Improvements"), the leases associated with the Land and Improvements ("Leases"), and the personal property described in Exhibit A ("Personal Property")].

Title Company:

Address:

Phone:

Fax:

6

Due Diligence for Income Producing Properties

Appendix 17-7

Underwriter: Purchase Price

Cash portion: Seller-financed portion (principal amount of note):

Interest rate: Maturity date: Payment schedule: Third-party?financed portion: Total purchase price: Earnest Money: Surveyor: Survey Category: Buyer's Liquidated Damages: Seller's Additional Liquidated Damages: County for Performance: A. Deadlines and Other Dates All deadlines in this contract expire at 5:00 P.M. local time where the Property is located. If a deadline falls on a Saturday, Sunday, or national holiday, the deadline will be extended to the next day that is not a Saturday, Sunday, or national holiday. A national holiday is a holiday designated by the federal government. Time is of the essence. 1. Earnest Money Deadline: [date]

7

Due Diligence for Income Producing Properties

Appendix 17-8

2. Delivery of Title Commitment: [[date]/[number] days after the Effective Date] 3. Delivery of Survey: [[date]/[number] days after the Effective Date] 4. Delivery of UCC Search: [[date]/[number] days after the Effective Date] 5. Delivery of legible copies of instruments referenced in the Title Commitment, Survey, and UCC Search: [[date]/[number] days after the Effective Date] 6. Delivery of Title Objections: [[date]/[number] days after the Effective Date/[number] days after delivery of the Title Commitment, Survey, and legible copies of the instruments referenced in them] 7. Delivery of seller's records as specified in Exhibit C: [[date]/[number] days after the Effective Date] 8. End of Inspection Period: [[date]/[number] days after the Effective Date] 9. Closing Date: [[date]/[number] days after the Effective Date] 10. Closing Time: [time] B. Closing Documents 1. At closing, Seller will deliver the following items: General Warranty Deed [include if applicable: with Vendor's Lien] Special Warranty Deed [include if applicable: with Vendor's Lien] Bill of Sale and Assignment IRS Nonforeign Person Affidavit Evidence of Seller's authority to close this transaction Notices, statements, and certificates as specified in Exhibit D

8

 ................
................

In order to avoid copyright disputes, this page is only a partial summary.

Google Online Preview   Download