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4.7. SR 07-01-2019 EGty1� ,.,�� Request for Action River To Item Number Mayor and City Council 4.7 Agenda Section Meeting Date Prepared by ConsentJuly 1, 2019 Cal Portner, City Administrator Item Description Reviewed by Dryer Litigation Settlement Peter Beck, City Attorney Reviewed by Jared Shepherd,Litigation Counsel Action Requested Approve,by motion, a settlement agreement for the City of Elk River, SNL Island View Properties,LLC and John and Elaine Dryer. Background/Discussion Following a property line dispute in the Westwood Subdivision the city and SNL Island View Properties, LLC were served a summons by John and Elaine Dryer in January of 2018. Over the past 18 months the parties have prepared for trial,which was scheduled following an unsuccessful mediation. Prior to trying the case, the parties agreed to a tentative resolution which has now been finalized. When the agreement is executed by all of the parties,final action will be before the Council on July 15. Financial Impact N/A Attachments ■ Settlement Agreement The Elk River Vision A PehoMing community 2a itb revolutionary and spirited resourcefulness, exceptional POWERED By service, and community engagement that encourages and inspires prosperity INAMIRE1 1 STATE OF MINNESOTA COUNTY OF SHERBURNE DISTRICT COURT TENTH JUDICIAL DISTRICT ______________________________________________________________________________ John and Elaine Dryer, Plaintiffs, v. City of Elk River and SNL Island View Properties, LLC, Defendants Case Type: Quiet Title Case File No.: 71-CV-18-705 Judge Mary A. Yunker ______________________________________________________________________________ CONTINGENT SETTLEMENT AGREEMENT ______________________________________________________________________________ RECITALS WHEREAS, on December 19, 2017, Plaintiffs John and Elaine Dryer (referred to hereinafter alternatively as “Plaintiffs” or “Dryers”) initiated the above -captioned lawsuit, Case File No. 71-CV-18-705 (hereinafter “Lawsuit”) against Defendants City of Elk River (hereinafter “City”) and SN L Island View Properties, LLC (hereinafter “SNL”); and WHEREAS, the Dryers own a single-family home at 13008 Island View Drive, Elk River, Minnesota and legally described as: Lot 14, Block 1, Island View Subdivision (“Property”); and WHEREAS, the plat for Island View Subdivision (“Island View Plat”) was approved by the Sherburne County Board of Commissioners on July 12, 1961; and WHEREAS, Island View Subdivision is bordered to the east by Westwood Subdivision; and WHEREAS, the Plat for Westwood Subdivision (“Westwood Plat”) was approved by the Sherburne County Board of Commissioners on February 4, 1953; and 2 WHEREAS, SNL owns a single-family home at 13002 Island View Drive, Elk River, Minnesota, which is located on the southern half of Lot 6 and Lots 7 -10, Block 5 of Westwood Subdivision; and WHEREAS, the western border of Westwood Subdivision also constitutes the western edge of Western Avenue, which was dedicated as part of the Westwood Subdivision plat as a dedicated public right-of-way by dedication language contained on the Plat, which states, in relevant part, “hereby dedicate to the public and for the public use forever all avenues, streets, park, and Outlot A.”; and WHEREAS, pursuant to the Plat dedication, the City holds an easement for the public over Western Avenue for a public right-of-way known as Western Avenue (“Right-of-Way”); and WHEREAS, SNL owns property that is both adjacent and subservient to the Right-of-Way; and WHEREAS, the use of Western Avenue is the subject of the Lawsuit; and WHEREAS, the Parties have agreed to settle all potential and existing disputes between them, including those claims, defenses and allegations in the Lawsuit in accordance with the terms of this Contingent Settlement Agreement (“Agreement”). NOW, THEREFORE, in consideration of the mutual promises, agreements, and covenants contained herein, Plaintiffs John and Elaine Dryer and Defendants City of Elk River and S NL Island View Properties, LLC (hereinafter collectively, “Parties,” or individually “Party”) hereby mutually agree as follows: 1. INCORPORATION. The above recitals are incorporated into this Agreement as if fully stated herein. 3 2. SALE OF THE PROPERTY. The Dryers agree to sell and SNL agrees to purchase the Property for the sum of THREE HUNDRED THIRTY -EIGHT THOUSAND DOLLARS ($338,000.00) (“Purchase Amount”), subject to the terms, conditions, and contingencies of a Purchase Agreement substantially similar in form and substance to Exhibit A. The Dryers shall deposit the Purchase Amount in the trust or escrow account of the designated closing comp any (“Escrow Agent”). The Closing of the real estate transaction contemplated in Exhibit A will occur on July 12, 2019 (hereinafter “Closing”). 3. REIMBURSEMENT TO CITY. After the satisfaction of the contingencies in Section 7, subsections (A.),(C.), and (D), the Dryers shall direct the Escrow Agent to pay to the City, in a form approved by the City, the sum of FIFTY- EIGHT THOUSAND DOLLARS ($58,000.00), which represents partial reimbursement for attorneys’ fees incurred by the City in the Lawsuit (“Reimbursement”). 4. VACATION OF THE CITY’S RIGHT -OF-WAY OVER WESTERN AVENUE. Pursuant to Minn. Stat. § 412.851, the City Council will hold a public hearing on a proposed resolution to vacate a segment of the Right -of-Way, which is contingent upon the Closing, substantially similar in form and substance to the attached Exhibit B (“Resolution”). The area to be vacated is shown and to be described on Exhibit 1 attached to Exhibit B. SNL acknowledges that it does not have any interest in that portion of Western Avenue not subject to the Resolution, which remains a publicly dedicated right -of-way. SNL agrees that it is responsible for contacting Gopher State One Call and to have utilities marked on the Property. SNL acknowledges that, consistent with Mi nn. Stat. § 160.29, subd. 2, the Resolution, by its terms, does not affect or impair any existing easements for utilities within the Right-of-Way. 4 The Vacation of the Right-of-Way is not deemed approved by this Agreement but is subject to the applicable notice and public hearing requirements of Minn. Stat. § 412.851, and consideration by the City Council on July 15, 2019. This Agreement does not restrain the exercise of the City Council with respect to the decision which it will make on the Resolution co ntemplated herein. 5. BOUNDARY ADJUSTMENT. Upon City Council approval of the Resolution as contemplated in Section 3 above and application by SNL, and after a complete application conforming to City requirements filed by SNL, the City Council shall approve a boundary line adjustment across plat boundaries between the Westwood Plat and the Island View Plat to be memorialized on a Final Plat, submitted by SNL, which will conform to the new parcel boundaries shown on the attached Exhibit C (“Boundary Adjustment”). The Boundary Adjustment shall be contingent upon the Closing of the Property located at 13008 Island View Drive. 6. LICENSE AGREEMENTS. To the extent that SNL wants to retain encroachments within the City’s remaining right-of-way over Western Avenue, SNL agrees to execute the license agreement, attached as Exhibit D. 7. CONTINGENT SETTLEMENT. This Agreement constitutes a contingent agreement. In the event that any of the following events contemplated herein do not occur, this Agreement is null and void and of no further force and effect: A. A Closing of the Property located at 13008 Island View Drive on or before July 12, 2019. B. Reimbursement to City the sum of FIFTY -EIGHT THOUSAND DOLLARS ($58,000), as described in paragraph 3 above . C. City Council approval of Resolution by July 15, 2019. 5 D. City Council approval of Boundary Adjustment by July 15, 2019. 8. NOTICES. Any notices to the parties shall be in writing and shall be either hand delivered or mailed to the party by certified or registered mail at the following address: PLAINTIFFS: John and Elaine Dryer C/O Douglas A. Boese Dunlap & Seeger, P.A. 30 3rd Street SE, Suit e400 Rochester, MN 55904 COPY TO: Douglas A. Boese Dunlap & Seeger, P.A. 30 3rd Street SE, Suit e400 Rochester, MN 55904 SNL: SNL Island View Properties, LLC Attn: Erik Steven Sola 14540 97th Street Otsego, MN 55330 COPY TO: Sholly Blustin BLUSTIN & ASSOCIATES, PLLC 19230 Evans Street NW Suite 103 Elk River, MN 55330 CITY: City of Elk River Attn: City Administrator 13065 Orono Parkway Elk River, MN 55330 COPY TO: Peter Beck Beck Law Office 4746 Sheridan Ave. S. Minneapolis, MN 55410 9. RELEASE AND DISCHARGE. In consideration of the mutual promises contained herein, each Party shall release and forever discharge the others , including all of their past, present and future officers, directors, officials, attorneys, principles, representatives, insurers, administrators, executors, successors and assigns, employees and agents, from any and all claims, 6 demands, causes of action, obligations, damages, security interests and liability of any nature whatsoever whether known or not known, suspected or claimed which the releasing Party ever had, now has, or claims to have against the other from the beginning of time to the date of this Agreement, including but not limited to any and all claims which are or may be based in whole or in part on, or due or may arise out of, or are or may be related to or in any way connected with the matters or claims referred to the respective pleadings in the Lawsuit, including but not limited to the use or ownership of the Right-of-Way known as Western Avenue. 10. STIPULATION OF DISMISSAL. At such time as the terms of this Agreement, including all contingencies in Section 7 have been complied with, counsel for Parties shall file a Stipulation of Dismissal with prejudice and without costs in the form attached hereto as Exhibit E. With the exception of the Reimbursement contemplated in Section 2 above, each party shall bear its own costs and attorneys’ fees in connection with this Lawsuit. 11. CONSENT AND ADVICE OF COUNSEL/GOOD FAITH AGREEMENT. All Parties to this Agreement acknowledge that they know and understand the contents of this Agreement and this Agreement has been executed voluntarily, in good faith, and without coercion by any party. Further, this Agreement represents a negotiated se ttlement to resolve the Lawsuit on terms agreeable to all Parties. Finally, by their signature below, each Party acknowledges that they have been represented by the independent legal counsel of their choice or each Party has executed this Agreement with t he consent and on the advice of such independent legal counsel. 12. MISCELLANEOUS A. This Agreement constitutes the complete and final understanding between the parties with regard to the matters set forth herein. 7 B. Each provision of this Agreement is mat erial. There is no severability. The failure or inability to effectuate, implement or accomplish any term of this Agreement voids this Agreement in its entirety. C. The action or inaction of the City Council shall not constitute an amendment to the provisions of this Agreement. To be binding, amendments shall be in writing signed by the parties and approved by vote of the City Council. D. This Agreement may be executed in one or more counterparts, each of which will be deemed an original, but all of which will constitute one and the same instrument. IN WITNESS WHEREOF, the parties have executed this Agreement as of the date last written below. PLAINTIFFS JOHN & ELAINE DRYER Dated: , 2019 By: John Dryer Dated: , 2019 By: Elaine Dryer SNL ISLAND VIEW PROPERTIES, LLC Dated: , 2019 By: Its: ___________________________ 8 CITY OF ELK RIVER Dated: , 2019 By: Its: Mayor By: Its: City Clerk 9 EXHIBIT A PURCHASE AGREEMENT 10 EXHIBIT B RESOLUTION Page 1 of 11 ____________ ____________ ____________ ____________ Initials Initials Initials Initials RESIDENTIAL PURCHASE AGREEMENT BEFORE YOU USE OR SIGN THIS CONTRACT, YOU SHOULD CONSULT WITH AN ATTORNEY TO DETERMINE THAT THIS CONTRACT ADEQUATELY PROTECTS YOUR LEGAL RIGHTS. 1. PARTIES. This Purchase Agreement is made on the ____ day of June 2019, by and between John and Elaine Dryer, husband and wife, 13008 Island View Drive, Elk River, MN 55330 (“Seller”) and SNL Island View Properties, LLC, a Minnesota limited liability company, its successors or assigns, 13002 Island View Drive, Elk River, MN 55330 (“Buyer”). 2. OFFER/ACCEPTANCE. Buyer offers to purchase, and Seller agrees to sell , the real property legally described on Exhibit 1 hereto and assigned the street address of 13008 Island View Drive, Elk River, MN 55330. 3. ACCEPTANCE DEADLINE. This offer to purchase, unless accepted sooner, shall be null and void at 11:59 PM on the 16th day of July 2019, or at such time as the contingencies set forth herein are not satisfied (whichever is later). 4. PERSONAL PROPERTY AND FIXTURES INCLUDED IN SALE. The following items of personal property and fixtures owned by Seller and currently located on the property are included in this sale [strike out items not included]: garden bulbs, plants, shrubs, trees, storm windows and inserts, storm doors, screens, window shades, blinds, curtain-traverse-drapery rods, attached lighting fixtures with bulbs, plumbing fixtures, sump pumps, water heaters, heating systems, heating stoves, fireplace inserts, fireplace doors and screens, built-in humidifiers, built-in air conditioning units, built-in electronic air filters, automatic garage door openers with controls, water softeners, built -in dishwashers, garbage disposals, built -in trash compactors, built-in ovens and cooking stoves, hood-fans, intercoms, installed carpeting, work benches, security systems, and also the following property: dock and boat lift. Upon delivery of the deed, Seller shall also deliver a Bill of Sale for the above personal property. 5. PRICE AND TERMS. The price for the real and personal property included in this sale is Written dollar amount of Three Hundred and Thirty-Eighty Thousand and xx/100 Dollars ($338,000.00) which Buyer shall pay as follows: Earnest money of $0.00 by Cash, check or note, receipt of which is hereby acknowledged (to be deposited the next business day after acceptance in trust account of listing broker, unless otherwise specified in writing) and $338,000.00 cash on or before the 12th day of July 2019 (the DATE OF CLOSING) which shall be deposited the next business day after acceptance in the trust account or escrow account of the designated closing company until the earlier of such time as all of the contingencies set forth in Paragraph 7 of the Settlement Agreement by and between the Seller, Buyer and the City of Elk River dated ___________, 2019 and relating to Sherburne County Civil File No. 71 -CV-18-70 are satisfied in full or July 19, 2019. Page 2 of 11 ____________ ____________ ____________ ____________ Initials Initials Initials Initials 6. DEED/MARKETABLE TITLE. Upon performance by Buyer, Seller shall execute and deliver a Warranty Deed, joined in by spouse, if any, conveying marketable title, subject to: (A) Building and zoning laws, ordinances, state and federal regulations; (B) Restrictions relating to use or improvement of the property without effective forfeiture provisions; (C) Reservation of any mineral rights by the State of Minnesota; (D) Utility and drainage easements which do not interfere with existing improvements; (E) Exceptions to title which constitute encumbrances, restrictions, or easements which have been disclosed to Buyer and accepted by Buyer in this Purchase Agreement; (Must be specified in writing.) 7. REAL ESTATE TAXES AND SPECIAL ASSESSMENTS. Real estate taxes due and payable in and for the year of closing shall be prorated between Seller and Buyer on a calendar year basis to the actual date of closing, unless otherwise provided in this Agreement. • [Underline one] BUYER AND SELLER SHALL PRORATE AS OF THE DATE OF CLOSING/SELLER SHALL PAY on Date of Closing all installments of special assessments certified for payment with the real estate taxes due and payable in the year of closing. • [Underline one] BUYER SHALL ASSUME/SELLER SHALL PAY ON DATE OF CLOSING all other special assessments levied as of the date of this Agreement. • [Underline one] BUYER SHALL ASSUME/SELLER SHALL PROVIDE FOR PAYMENT OF special assessments pending as of the date of this agreement for improvements that have been ordered by the City Council or other governmental assessing authorities. (Seller’s provision for payment shall be by payment into escrow of 1½ times the estimated amount of the assessments.) As of the date of this Agreement, Seller represents that Seller has not re ceived a Notice of Hearing of a new public improvement project from any governmental assessing authority, the costs of which project may be assessed against the property. If a special assessment becomes pending after the date of this Agreement and before the date of closing, Buyer may, at Buyer’s option: A. Assume payment of the pending special assessment without adjustment to the purchase agreement price of the property; or, B. Require Seller to pay the pending special assessment (or escrow for payment of same as provided above) and Buyer shall pay a commensurate increase in the purchase price of the property, which increase shall be the same as the estimated amount of the assessment; or, Page 3 of 11 ____________ ____________ ____________ ____________ Initials Initials Initials Initials C. Declare this Agreement null and void by notice to Seller, and earnest money shall be refunded to Buyer. • [Strike out one] BUYER SHALL ASSUME/SELLER SHALL PAY ON DATE OF CLOSING any deferred real estate taxes or special assessments payment of which is required as a result of the closing of this sale. Buyer shall pay real estate taxes due and payable in the year following closin g and thereafter and any unpaid special assessments payable therewith and thereafter, the payment of which is not otherwise provided herein. Seller warrants that taxes due and payable in the year 2019 will be homestead classification. Seller makes no representation concerning the amount of future real estate taxes or of future special assessments. Seller has paid the real estate taxes for the first half of year 2019. 8. DAMAGES TO REAL PROPERTY. If the real property is substantially damaged prior to closing, this Agreement shall terminate and the earnest money shall be refunded to Buyer. If the real property is damaged materially but less than substantially prior to closing, Buyer may rescind this Agreement by not ice to Seller within twenty-one (21) days after Seller notifies Buyer of such damage, during which 21-day period Buyer may inspect the real property, and in the event of such rescission, the earnest money (if any) shall be refunded to Buyer. 9. SELLER’S BOUNDARY LINE, ACCESS, RESTRICTIONS AND LIEN WARRANTIES. Seller warrants that most buildings are entirely within the boundary lines of the property, save for a shed. Seller warrants that there is a right of access to the real property from a public right of way. Seller warrants that there has been no labor or material furnished to the property for which payment has not been made. Seller warrants that there are no present violations of any restrictions relating to the use or improvement of the property sa ve for those set forth in the litigation titled Dryer v. City of Elk River and SNL Island View Properties, LLC, Sherburne County District Court File No. 71- CV-18-705. These warranties shall survive the delivery of the deed or contract for deed. 10. CONDITION OF PERSONAL PROPERTY. Seller warrants that all appliances, fixtures, heating and air conditioning equipment, wiring, and plumbing used and located on the property are in working order on the date of closing. Seller [underline one] HAS/HAS NOT had a wet basement or water in the basement. Seller discloses that the roof [Underline one] HAS/HAS NOT leaked. Seller warrants that the property is connected to: city sewer (YES/NO) city water (YES/NO); cable TV (YES/NO). Seller shall remove all debris and all personal property not included in this sale from the property before possession date. Seller has not received any notice from any governmental authority as to the existence of any Dutch elm disease, oak wilt, or other disease of any trees on the property. Seller’s warranties and representations contained in this paragraph 10 shall survive the delivery of the Deed or Contract for Deed, provided that any notice of a defect or claim of breach of warranty must be in writing and given by Buyer to Seller within one year of the date of closing or be deemed waived. Buyer shall have the right to have inspections of the property conducted prior to closing. Unless Page 4 of 11 ____________ ____________ ____________ ____________ Initials Initials Initials Initials required by local ordinance or lending regulations, Seller does not plan to have the property inspected. Other than the representations made in this paragraph 10, the property is being sold “AS IS” with no express or implied representations or warranties by Seller as to physical conditions, quality of construction, workmanship, or fitness for any particular purpose. (This paragraph is not intended to waive or modify any provisions of MINN. STAT., Chapter 327A.) 11. DISCLOSURE OF NOTICES. Seller has not received any notice from any governmental authority as to violation of any law, ordinance or regulat ion. If the property is subject to restrictive covenants, Seller has not received any notice from any person as to a breach of the covenants. 12. TRUTH-IN-HOUSING. Buyer acknowledges receipt of the Truth -in-Housing Disclosure Report or other inspection report if required by the municipality in which the property is located. 13. POSSESSION. Seller shall deliver possession of the property not later than the date of closing. All interest, fuel oil, liquid petroleum gas, and all charges for city water, cit y sewer, electricity, and natural gas shall be prorated between the parties as of the date of closing which shall be on or before the 19th day of July 2019. 14. ENVIRONMENTAL CONCERNS. To the best of Seller’s knowledge there are no hazardous substances, or underground storage tanks located on the premises. To the best of Seller’s knowledge, the swimming pool functions for the purpose for which it is intended, that it does not now need repairs or service, that it is not missing any essential parts and that its only imperfections are due to wear and tear. Buyer accepts the swimming pool in “as is” condition. 15. WATER QUALITY. Seller/Buyer agrees to provide water quality test results if required by governing authority and/or lender. 16. SEPTIC SYSTEM. Seller/Buyer agrees to provide, if required by the terms of this Purchase Agreement or by governing authority and/or lender, a licensed ins pector’s septic system inspection report or notice indicating if the system complies with applicable regulations. Notice: A valid certificate of compliance for the system may satisfy this obligation. Nothing in paragraphs 15 or 16 shall obligate sellers to upgrade, repair or replace the septic system unless otherwise agreed to in this Purchase Agreement. Buyer has received the well disclosure statement and a Subsurface Sewage Treatment System Disclosure Statement or a statement that no well exists on the property, and a septic system disclosure statement or a statement that no septic system exists on or serves the property, as required by Minnesota statutes and the attached Wetlands, Shoreland and Flood Plan Disclosure Addendum. 17. EXAMINATION OF TITLE. A. ABSTRACT OF TITLE. Within a reasonable time after acceptance of this Agreement, Seller shall furnish Buyer with an Abstract of Title and proper searches covering bankruptcies and State and Federal judgments, liens, and levied and pending special assessments. Buyer shall have ten (10) business days after receipt Page 5 of 11 ____________ ____________ ____________ ____________ Initials Initials Initials Initials of the Abstract of Title or Registered Property Abstract either to have Buyer’s attorney examine the title and provide Seller with written objections or, at Buyer’s own expense, to make an application for a Title Insurance Policy and notify Seller of the application. Buyer shall have ten (10) business days after receipt of the Commitment for Title Insurance to provide Seller with a copy of the Commitment and written objections. Buyer shall be dee med to have waived any title objections not made within the applicable ten (10) day period for above, except that this shall not operate as a waiver of Seller’s covenant to deliver a statutory Warranty Deed, unless a Warranty Deed is not specified above. B. ABSTRACT LOST OR UNAVAILABLE: TITLE INSURANCE BY SELLER. If Seller is unable to find the Abstract of Title or if Seller did not receive an Abstract of Title when Seller purchased the Property, then, to demonstrate that Seller’s title is insurable for marketability and subject to only those matters disclosed at Paragraph 6, above, within a reasonable time after acceptance of this Agreement, Seller shall furnish Buyer with a Commitment for Title Insurance including proper searches covering bankruptcies and state and federal judgments, federal court judgment liens in favor of the U.S., liens, and levied and pending special assessments. [Seller: see Advisory below.] The Commitment shall be obtained from [select one:] _____ The title insurer of Buyer’s choice; or, _____ The same title insurer that issued title insurance to Seller so that Seller may obtain a reissue credit from the insurer. The Commitment shall contain the insurer’s requirements for deleting these exceptions in the owner’s policy (except for those matters accepted by Buyer in this Agreement): (1) Rights or claims of parties in possession, not shown by the public records (2) Easements, or claims of easements, not shown by the public records: (3) Discrepancies, conflicts in boundary lines, shortage in area, encroachments, and any facts which a correct survey and inspection of the premises would disclose, and which are not shown by the public records: and, (4) Any lien, or right to a lien, for services, labor or m aterial furnished, imposed by law and not shown by the public records. Seller shall provide to Buyer and to the title insurer all documents [except a survey, unless Seller is required by other provisions of this Agreement to provide a survey] necessary to enable the title insurer to delete these exceptions from the owner’s policy of title insurance. Buyer shall have ten business days after receipt of the Commitment for Title Insurance to provide Seller with a copy of the Commitment and written Title Objections. Buyer shall be deemed to have waived any Title Objections not made within the ten -day period above, except that this shall not operate as a waiver of Seller’s covenant to deliver a statutory Warranty Deed, unless a Warranty Deed is not specified above. By agreeing to receive title insurance in lieu of an Abstract, Buyer is not waiving the right to obtain a good and marketable title of record from Seller. [Buyer: see Advisory below.] Page 6 of 11 ____________ ____________ ____________ ____________ Initials Initials Initials Initials Select one of the following: ______ The Commitment shall be accompanied by, at Seller’s expense, the insurer’s agreement (or the separate agreement of a Minnesota -licensed abstracter) to provide Buyer with an Abstract of Title at any time in the future. The abstract to be provided shall be at no cost to Buyer for all abstracting through the date of recording of the instrument of conveyance contemplated by this Purchase Agreement. Seller shall pay all commitment, abstracting, examination, searches, and title insurance costs, including the premium for the owner’s policy and excluding the premium for the lender’s policies. _____ The Commitment will not include the insurer’s or abstracter’s agreement to provide Buyer with an Abstract of Title at any time at no cost to Buyer. Seller shall pay all commitment, abstracting, examination, searches, and title insurance costs including the premiums for the owner’s and the lender’s policy. ADVISORY TO SELLER: You should consult with your lawyer about the comparative costs of paying an abstract company to produce a new Abstract of Title versus paying the Buyer’s title insurance costs. In many Minnesota counties, it is less expensive to obtain a new Abstract. ADVISORY TO BUYER: You should consult with your lawyer about the relative merits of receiving an Abstract of Title versus receiving a title insurance policy. As a future seller of the same property, you likely will be asked to give your buyer an Abstract. If your Seller does not obtain the title insurance endorsement for future production of an Abstract, you might be facing a large expense when you sell. 18. TITLE CORRECTIONS AND REMEDIES. Seller shall have 120 days from receipt of Buyer’s written title objections to make title marketable. Upon receipt of Buyer’s title objections, Seller shall, within ten (10) business days, notify Buyer of Seller’s intention to make title marketable within the 120 -day period. Liens or encumbrances for liquidated amounts which can be released by payment or escrow from proceeds of closing shall not delay the closing. Cure of the defects by Seller shall be reasonable, diligent, and prompt. Pending correction of title, all payments required herein and the closing shall be postponed. A. If notice is given and Seller makes title marketable, then upon presentation to Buyer and proposed lender of documentation establishing that title has been made marketable, and if not objected to in the same time and manner as the original title objections, the closing shall take place within ten (10) business days or on the scheduled closing date, whichever is later. B. If notice is given and Seller proceeds in good faith to make title marketable but the 120-day period expires without title being made marketable, Buyer may declare this Page 7 of 11 ____________ ____________ ____________ ____________ Initials Initials Initials Initials Agreement null and void by notice to Seller, neither party shall be liable for damages hereunder to the other, and earnest money shall be refunded to Buyer. C. If Seller does not give notice of intention to make title marketable, or if notice is given but the 120- day period expires without title being made marketable due to Seller’s failure to proceed in good faith, Buyer may seek, as permitted by law, any one or more of the following: 1. Proceed to closing without waiver or merger in the deed of the objections to title and without waiver of any remedies, and may: (a) Seek damages, costs, and reasonable attorney’s fees from Seller as permitted by law (damages under this subparagraph (a) shall be limited to the cost of curing objections to title, and consequential damages are excluded); or, (b) Undertake proceedings to correct the objections to title; 2. Rescission of this Purchase Agreement by notice as provided herein, in which case the Purchase Agreement shall be null and void and all earn est money paid hereunder shall be refunded to Buyer; 3. Damages from Seller including costs and reasonable attorney’s fees, as permitted by law; 4. Specific performance within six months after such right of action arises. D. If title is marketable, or is made marketable as provided herein, and Buyer defaults in any of the agreements herein, Seller may elect either of the following options, as permitted by law: 1. Cancel this contract as provided by statute and retain all payments made hereunder as liquidated damages. The parties acknowledge their intention that any note given pursuant to this contract is a down payment note, and may be presented for payment notwithstanding cancellation; 2. Seek specific performance within six months after such right of action arises, including costs and reasonable attorney’s fees, as permitted by law. E. If title is marketable, or is made marketable as provided herein, and Seller defaults in any of the agreements herein, Buyer may, as permitted by law: 1. Seek damages from Seller including costs and reasonable attorney’s fees; 2. Seek specific performance within six months after such right of action arises. TIME IS OF THE ESSENCE FOR ALL PROVISIONS OF THIS CONTRACT. 19. NOTICES. All notices required herein shall be in writing and delivered personally or mailed to the address as shown on Exhibit 2 to this Agreement and if mailed, are effective as of the date of mailing. 20. AGENCY DISCLOSURE. (Name of selling agent or selling broke r) ____N/A_______________ DISCLOSES HE OR SHE IS REPRESENTING THE (BUYER OR SELLER) IN THIS TRANSACTION. THE LISTING AGENT OR BROKER DISCLOSES THAT HE OR SHE IS REPRESENTING THE SELLER IN THIS TRANSACTION. Page 8 of 11 ____________ ____________ ____________ ____________ Initials Initials Initials Initials SELLER’S SELLER’S BUYER’S BUYER’S INITIALS __________ INITIALS ____________INITIALS ___________ INITIALS__________ (Date) ______________(Date)________________(Date)_______________ (Date)_____________ 21. SUBDIVISION OF LAND. If this sale constitutes or requires a subdivision of land owned by Seller, Seller shall pay all subdivision expenses and obtain all necessary governmental approvals. Seller warrants that the legal description of the real property to be conveyed has bee n or will be approved for recording as of the date of closing. 22. MINNESOTA LAW. This contract shall be governed by the laws of the State of Minnesota. 23. ADDITIONAL TERMS. ____X__ Buyer to secure financing at no cost to Seller. Seller shall contribute $1,500.00 to the payment of the total closing costs. This Purchase Agreement is subject to the Financing Contingency Addendum that is attached hereto. 24. NOTICE REGARDING PREDATORY OFFENDER NOTIFICATION: Information regarding the predatory offender registry and persons registered with the predatory offender registry under MN Statute §243.166 may be obtained by contacting the local law enforcement offices in the community where the property is located or the Minnesota Department of Corrections at (651) 361-7200, or from the Department of Corrections website at www.corr.state.mn.us. 25. PROPERTY INSPECTION. Buyer has been made aware of the availability of property inspections. Buyer □ Elects □ Declines to have the property inspection performed at Buyer’s expense. This Purchase Agreement □ IS □ IS NOT subject to an Inspection Contingency Addendum. If the answer is yes, see the attached Addendu m. 26. CONDITION OF THE REAL PROPERTY. A. Statutory Disclosure. Pursuant to Minnesota Statutes Sections 513.52 - 513.60, Seller must written disclosure [see (1) below], or Buyer must have received an inspection report [see (2) below], or provide a Buyer and Seller may waive the written disclosure requirements [see (3) below]. Minnesota Statutes Section 513.57, Subd. 2. LIABILITY. A seller who fails to make a disclosure as required by sections 513.52 to 513.60 and was aware of material facts pertaining to the real property is liable to the prospective buyer. A person injured by a violation of this section may bring a civil action and recover damages and receive other equitable relief as determined by the court. An action under this subdivision must be commenced within two years after the date on which the prospective buyer closed the purchase or transfer of the real property. [Select only one of these three:] ______ (1) Seller’s Disclosure. Seller has provided a written disclosure to Buyer. A copy of Seller’s disclosure is attached. Seller shall correct in writing any inaccuracies in the disclosure as soon as reasonably possible before closing. Page 9 of 11 ____________ ____________ ____________ ____________ Initials Initials Initials Initials Minnesota Statutes Section 513.55. GENERAL DISCLOSURE REQUIREMENTS. Subdivision 1. CONTENTS. (a) Before signing an agreement to sell or transfer residential real property, the seller shall make a written disclosure to the prospective buyer. The disclosure must include all material facts of which the seller is aware that could adversely and significantly affect: (1) an ordinary bu yer's use and enjoyment of the property; or, (2) any intended use of the property of which the seller is aware. (b) The disclosure must be made in good faith and based upon the best of the seller's knowledge at the time of the disclosure. Minnesota Statutes Section 513.58. AMENDMENT TO DISCLOSURE. Subdivision 1. NOTICE. A seller must notify the prospective buyer in writing as soon as reasonably possible, but in any event before closing, if the seller learns that the seller's disclosure required by Section 513.55 was inaccurate. Subdivision 2. FAILURE TO NOTIFY; LIABILITY. A seller who fails to notify the prospective buyer of any amendments to the initial disclosure required under subdivision 1 is liable to the prospective buyer as provided in Section 513.57. _____ (2) Inspection Report. Bu yer has received an inspection report by a qualified third- part y. If a copy of the inspection report is provided to Seller, Seller shall disclose to Bu yer material facts known to Seller that contradict any information in the inspection report. Minnesota Statutes Section 513.56 Subd. 3. INSPECTIONS. (a) Except as provided in paragraph (b), a seller is not required to disclose information relating to the real property if a written report that discloses the information has been prepared by a qualified third party and provided to the prospective bu yer. For purposes of this paragraph, "qualified third party" means a federal, state, or local governmental agency, or any person whom the seller, or prospective buyer, reasonably believes has the expertise necessary to meet the industry standards of practice for the type of inspection or investigation that has been conducted by the third party in order to prepare the written report (b) A seller shall disclose to the prospective buyer material facts known by the seller that contradict any information included in a written report under paragraph (a) if a copy of the report is provided to the seller. _____ 3) Waiver of Disclosure Minnesota St atutes Section 513.60. WAIVER. The written disclosure required under Sections 513.52 to 513.60 may be waived if the seller and the prospective bu yer agree in writing. Waiver of the disclosure required under Sections 513.52 to 513.60 does not waive, limit, or abridge any obligation fo r seller disclosure created by any other law. Seller and Buyer waive the written disclosure required under Sections 513.52 to 513.60. SELLER: ____________________________ BUYER: ______________________________ SELLER: ____________________________ BUYER: ______________________________ Page 10 of 11 ____________ ____________ ____________ ____________ Initials Initials Initials Initials B. NOTICE OF AIRPORT ZONING REGULATIONS. If airport zoning regulations affect this real property, a copy of those airport zoning regulations as adopted can be viewed or obtained at the office of the county recorder where the zoned area is located. C. WARRANTIES SURVIVE CLOSING. Seller's warranties and representations contained in this Paragraph 26, shall survive the delivery of the Deed or Contract for Deed. 27. ADDENDA. Attached are ___________ exhibits/addenda which are made a part of this Agreement. THIS IS A LEGALLY BINDING CONTRACT, BEFORE SIGNING, CONSULT A LAWYER. Minnesota law permits licensed real estate brokers and sales agents to prepare purchase agreements. No recommendation or representation is made by either the listing broker or selling broker as to the legal sufficiency, the legal effect, or the tax consequences of this contrac t. These are questions for your lawyer. I agree to sell the property for the price, and I agree to purchase the property for the price and terms and conditions set forth above. SELLER___________________________ BUYER __________________________________ (Date) (Date) SELLER____________________________ BUYER__________________________________ (Date) (Date) Closing shall be at the office of: TO BE DETERMINED Page 11 of 11 ____________ ____________ ____________ ____________ Initials Initials Initials Initials ADDENDA 1. FINANCING ADDENDUM FOR CONVENTIONAL OR PRIVATELY INSURED MORTGAGE 2. METHAMPHETAMINE DISCLOSURE STATEMENT 3. ADDENDUM TO PURCHASE AGREEMENT: WETLANDS, SHORELAND AND FLOOD PLAIN DISCLOSURE 4. ADDENDUM TO PURCHASE AGREEMENT: TITLE ISSUES 5. INSPECTION CONTINGENCY M.S.B.A. Real Property Form No. 2 (2008, 2017) Financing Addendum for Conventional or Privately Insured Mortgage FINANCING ADDENDUM / Page 1 of 3 FINANCING ADDENDUM FOR CONVENTIONAL OR PRIVATELY INSURED MORTGAGE © Copyright 1994, 2008, 2017 by Minnesota State Bar Association, Minneapolis, Minnesota. (Use only with "Minnesota Standard Residential Purchase Agreement", Minnesota State Bar Association.) This Addendum is a continuation of the PRICE AND TERMS contained in Paragraph 5 of the Purchase Agreement dated 1 by and between , as Seller,2 and , as Buyer,3 for property located at or legally described as: 4 5 6 7 8 9 A. FINANCING CONTINGENCY.10 Notice to Buyer and Seller. Buyer’s mortgage financing is usually the most significant contingency in a Purchase Agreement.11 Of the three choices below, 1., and 2., are legally uncertain since Buyer is not required to present a “Borrower’s Loan Commitment”12 (as defined by Minn. Stat. Section 47.20, Subd. 2(8) and delivered by lender to Buyer in the form and with the content required by13 Minn. Stat. Section 47.206). 14 Pursuant to Minn. Stat. Section 47.206, Subd. 3, the “loan approval” or “loan qualification letter” discussed in 2., below, is not15 enforceable against the lender by the Buyer (as “borrower” under that statute). Such written statements from a lender may be16 withdrawn or may have their terms altered by the lender prior to closing.17 Choice 3., below, has more certainty, but it might also present Buyer with an unforeseen expense. Some lenders charge a fee18 for obtaining a loan commitment. Choice 3., below, might also present Buyer with a limited number of lenders: some lenders19 (typically mortgage brokers) will not offer loan commitments. 20 [Portions of the statutes cited in this Notice are reprinted at the end of this form.]21 22 Buyer's performance of Buyer's obligations under this Purchase Agreement is contingent upon Buyer securing the23 financing referred to in paragraph B. below. [Choose one of the following three choices:]24 25 [__] 1.Contingency Open Until Date of Closing. This contingency is effective until the Date of Closing as stated in the26 Purchase Agreement. If Buyer is unable to secure the financing on or before the Date of Closing, this Purchase27 Agreement is canceled and the earnest money shall be refunded to Buyer. “Securing financing” under this paragraph28 1., means obtaining mortgage financing that is delivered at closing. 29 Buyer may waive this financing contingency prior to the Date of Closing.30 31 [__] 2.Informal, Unenforceable “Loan Approval.” This contingency is effective until [state date (allowing Buyer32 approximately 3 weeks or more to secure financing)] [ the “Loan Approval33 Date”]. “Securing financing” under this paragraph 2., means obtaining a ”loan approval letter,” a “loan qualification34 letter,” or some other form of nonbinding written statement from a lender indicating a willingness to make a loan. If, on35 or before the Loan Approval Date, 36 !Buyer has not delivered to Seller evidence that Buyer has secured the financing, or, 37 !Buyer has delivered such evidence to Seller and Seller has indicated in writing to Buyer that Buyer’s evidence is38 not satisfactory to Seller, 39 then [select either a., or b.]40 [__] a. this Purchase Agreement is canceled and the earnest money shall be refunded to Buyer. 41 [__] b. Seller may cancel this Purchase Agreement pursuant to Minn. Stat. Section 559.217, Subd. 3 (allowing42 Buyer a 15 day right to cure). 43 Buyer may waive this financing contingency on or before the Loan Approval Date.44 45 [__] 3.Formal, Enforceable Loan Commitment. This contingency is effective until [state date (allowing Buyer approximately46 3 weeks or more to secure financing)] [ the “Commitment Date”].47 “Securing financing” under this paragraph 3., means obtaining a loan commitment or loan agreement as defined in48 Minnesota Statutes section 47.20. If, on or before the Commitment Date, Buyer has not delivered a copy of the loan49 commitment to Seller, 50 then [select either a., or b.]51 [__] a. this Purchase Agreement is canceled and the earnest money shall be refunded to Buyer. 52 [__] b. Seller may cancel this Purchase Agreement pursuant to Minn. Stat. Section 559.217, Subd. 3 (allowing53 Buyer a 15 day right to cure). 54 Buyer may waive this financing contingency on or before the Commitment Date.55 56 M.S.B.A. Real Property Form No. 2 (2008, 2017) Financing Addendum for Conventional or Privately Insured Mortgage FINANCING ADDENDUM / Page 2 of 3 B. CONVENTIONAL OR INSURED CONVENTIONAL MORTGAGE TERMS.57 Buyer will apply for and attempt to secure, at Buyer's expense, a [strike out one] CONVENTIONAL / INSURED CONVENTIONAL58 Mortgage ("Mortgage") in at least the amount stated in the Purchase Agreement, amortized monthly over a period of not more than59 ________ years with a fixed interest rate not to exceed _________ % per annum or an adjustable rate with an initial interest rate60 of no more than __________% per annum ("Rate"), and a maximum interest rate of no more than ___________ % per annum and61 with other terms not less favorable to Buyer than those set forth in this Addendum.62 63 C. MORTGAGE APPLICATION.64 The Mortgage application is to be made within five (5) business days after the acceptance of the Purchase Agreement. Buyer shall65 use best efforts to secure the financing and shall execute all documents required to secure the financing.66 67 D. PRIVATE MORTGAGE INSURANCE PREMIUMS (IF INSURED CONVENTIONAL MORTGAGE).68 Buyer shall pay ________% and Seller shall pay ________% of the first year's conventional mortgage insurance premium ("MIP")69 required by the lender. Buyer shall pay all subsequent years' MIP as required by the lender.70 71 E. DISCOUNT POINTS.72 Mortgage discount points ("Points") shall not exceed _________% of the Mortgage amount. Such Points shall be paid as follows:73 74 Buyer shall pay __________ Point(s).75 Seller shall pay __________ Point(s).76 77 If the Points charged by the lender are less than the amount agreed to above, then [initial option 1, 2 or 3]:78 79 1. ________ Buyer/________ Seller The Points shall be charged first to Seller and the balance to Buyer. If the Points to80 be paid by Seller are less than the amount agreed to above, then [initial option a. or81 b.]:82 83 a. ___________ Buyer/__________ Seller84 Seller shall pay only the Points charged by lender, or85 86 b. ___________ Buyer/__________ Seller87 Seller shall pay the full amount agreed to above and the balance shall be applied to Buyer's closing costs as directed by88 Buyer.89 90 2. _________ Buyer/_______ Seller91 The points shall be charged first to Buyer and the balance to Seller.92 93 3. _________ Buyer/_______ Seller94 The Points shall be paid proportionately by both Seller and Buyer as agreed above.95 96 F. LOCKING/FLOATING OF RATE AND POINTS.97 The Rate and Points shall be [strike out one] LOCKED / FLOATED on the date of mortgage application. If the Rate and Points98 are floated, it shall be the sole discretion of [strike out one] SELLER / BUYER to lock in the Rate and Points. If Seller has sole99 discretion to lock in the Rate and Points, Buyer shall sign lender’s lock-in documents promptly upon notification from Seller.100 101 G. LENDER WORK ORDERS.102 Nothing in the Purchase Agreement shall be construed to obligate Seller to make any repairs required by the lender. However,103 Seller shall pay up to ___________________________ to make repairs required by the lender. If the lender requires repairs104 exceeding this amount, then, unless either Seller or Buyer agrees in writing, within seven (7) days after the date lender’s work order105 is delivered to Seller, to pay the cost of such excess repairs, this Purchase Agreement is canceled and the earnest money shall106 be refunded to Buyer.107 SELLER: Date Date BUYER: Date Date ***** M.S.B.A. Real Property Form No. 2 (2008, 2017) Financing Addendum for Conventional or Privately Insured Mortgage FINANCING ADDENDUM / Page 3 of 3 CITED STATUTES [2007]: Minn. Stat. Section 47.20, Subd. 2(8). "Borrower's loan commitment" means a binding commitment made by a lender to a borrower wherein the lender agrees to make a conventional or cooperative apartment loan pursuant to the provisions, including the interest rate, of the commitment, provided that the commitment rate of interest does not exceed the maximum lawful rate of interest effective as of the date the commitment is issued and the commitment when issued and agreed to shall constitute a legally binding obligation on the part of the mortgagee or lender to make a conventional or cooperative apartment loan within a specified time period in the future at a rate of interest not exceeding the maximum lawful rate of interest effective as of the date the commitment is issued by the lender to the borrower; provided that a lender who issues a borrower's loan commitment pursuant to the provisions of a forward commitment is authorized to issue the borrower's loan commitment at a rate of interest not to exceed the maximum lawful rate of interest effective as of the date the forward commitment is issued by the lender. Subd. 4a(d). ***[text omitted] A borrower's interest rate commitment or a borrower's loan commitment is deemed to be issued on the date the commitment is hand delivered by the lender to, or mailed to the borrower. [text omitted]*** Minn. Stat. Section 47.206, Subd. 1(d). "Interest rate or discount point agreement" or "agreement" means a contract between a lender and a borrower under which the lender agrees, subject to the lender's underwriting and approval requirements, to make a loan at a specified interest rate or number of discount points, or both, and the borrower agrees to make a loan on those terms. The term also includes an offer by a lender that is accepted by a borrower under which the lender promises to guarantee or lock in an interest rate or number of discount points, or both, for a specific period of time. Subd. 2. A lender offering borrowers the opportunity to enter into an agreement in advance of closing shall disclose, in writing, to the borrowers at the time the offer is made: (1) a definite expiration date or term of the agreement, which may not be less than the reasonably anticipated closing date or time required to process, approve, and close the loan; (2) the circumstances, if any, under which the borrower will be permitted to close at a lower rate of interest or points than expressed in the agreement; (3) the steps required to process, approve, and close the loan, including the actions required of the borrower and lender; (4) that the agreement is enforceable by the borrower; and (5) the consideration required for the agreement. Subd. 3. A borrower or lender may not maintain an action on an agreement unless the agreement is in writing or is permitted by subdivision 4, expresses consideration, sets forth the relevant terms and conditions, and is signed by the borrower and the lender. RPF2_17_031817.wpd M.S.B.A. Real Property Form No. 12 (2002; Revised 2004, 2006, 2008, 2010, 2017) Addendum to Purchase Agreement: Common Interest Community Property ADDENDUM / PAGE 1 of 3 ADDENDUM TO PURCHASE AGREEMENT: COMMON INTEREST COMMUNITY PROPERTY © Copyright 2010, 2017 by Minnesota State Bar Association, Minneapolis, Minnesota. No copyright is claimed for statutory text. BEFORE YOU USE OR SIGN THIS CONTRACT, YOU SHOULD CONSULT WITH A LAWYER TO DETERMINE THAT THIS CONTRACT ADEQUATELY PROTECTS YOUR LEGAL RIGHTS. Minnesota State Bar Association disclaims any liability arising out of use of this form. This Addendum is a continuation of the Purchase Agreement dated _________________________, 20_______ by1 2 and between as Seller, and 3 4 , as Buyer, for property located at:5 6 7 8 9 10 Buyer acknowledges that, in addition to purchasing real property, Buyer is also buying a membership in a homeowners'11 association (a nonprofit corporation). The homeowners' association is a type of private, local government with its own12 rules, regulations and taxes. The homeowners' association is governed by its declarations, articles of incorporation,13 and bylaws. The homeowners' association is funded through annual and special assessments levied against the14 property by the homeowners' association. 15 16 STATUTORY DISCLOSURE NOTICE (Minn. Stat. section 515B.4-101(d)). “The following17 notice is required by Minnesota Statutes: The Purchaser is entitled to receive a Disclosure18 Statement or Resale Disclosure Certificate, as applicable. The Disclosure Statement or19 Resale Disclosure Certificate contains important information regarding the common20 interest community and the purchaser’s cancellation rights.”21 22 A. DISCLOSURE AND RIGHT TO CANCEL ON RESALE (Minn. Stat. section 515B.4-108).23 1. For a resale by an owner/seller, “Disclosure” means delivery to Buyer of the following information:24 (a) copies of the declaration (other than any common interest community plat), the articles of incorporation25 and bylaws, any rules and regulations, and any amendments or supplemental declarations; 26 (b) copies of the master declaration, articles of incorporation, bylaws, and rules and regulations, if the27 common interest community is subject to a master declaration; and 28 (c) a resale disclosure certificate from the association dated not more than 90 days prior to the date of the29 purchase agreement or the date of conveyance, whichever is earlier, containing the information required30 by Minn. Stat. section 515B.4-107(b).31 2. Buyer may, prior to the conveyance, cancel the purchase agreement within 10 days after receiving the32 information.33 3. If Buyer elects to cancel the purchase agreement, Buyer may do so by hand delivering notice thereof or34 mailing notice by postage prepaid United States mail to the Seller or the agent. 35 4. Cancellation is without penalty and all payments made by Buyer shall be refunded promptly.36 37 38 39 Receipt for Disclosure on Resale40 Date Buyer received the Disclosure: , 2041 Buyer's Signature:42 43 44 Buyer's Signature: 45 46 47 M.S.B.A. Real Property Form No. 12 (2002; Revised 2004, 2006, 2008, 2010, 2017) Addendum to Purchase Agreement: Common Interest Community Property ADDENDUM / PAGE 2 of 3 B. DISCLOSURE AND RIGHT TO CANCEL ON ORIGINAL SALE BY DECLARANT (Minn. Stat. section 515B.4-48 106).49 1. For a sale by a declarant/seller, “Disclosure” means a Disclosure Statement given pursuant to Minn. Stat.50 section 515B.4-101(b) containing all information required by Minn. Stat. sections 515B.4-102 — 105, and any51 amendments before conveyance.52 2. Buyer may cancel the purchase agreement within 10 days after first receiving the Disclosure Statement.53 3. If an amendment to the Disclosure Statement materially and adversely affects Buyer, then Buyer has 10 days54 after delivery of the amendment to cancel the purchase agreement.55 4. If a Buyer elects to cancel the purchase agreement, Buyer may do so by giving notice in writing which shall56 be effective upon hand delivery or upon mailing if properly addressed with postage prepaid and deposited in57 the United States mail. 58 5. Cancellation is without penalty and all payments made by Buyer before cancellation shall be refunded59 promptly.60 6. Buyer’s cancellation rights terminate upon Buyer’s acceptance of a conveyance of the Unit.61 62 Receipt for Disclosure on Original Sale by Declarant63 Date Buyer received the Disclosure: , 2064 Buyer's Signature:65 66 67 Buyer's Signature: 68 Receipt for Amendment to Disclosure on Original Sale by Declarant69 Date Buyer received the Amendment to the Disclosure: , 2070 Buyer's Signature:71 72 73 Buyer's Signature: 74 C. ASSOCIATION ASSESSMENTS.75 1.Delinquent assessments for current Association budget, for capital improvements, for extraordinary76 (unbudgeted) repairs, for inadequate Association reserves or budget deficits, or for any other77 delinquency, and any fines or charges associated with these delinquencies shall be paid:78 79 [__] By Seller [__] By Buyer [__] Prorated as follows: ______% by Seller and ______% by Buyer80 81 2.Monthly Association assessments (monthly installment of budgeted annual assessments) due in the month82 of closing shall be paid:83 84 [__] By Seller [__] By Buyer [__] Prorated between Seller and Buyer to the actual date of closing85 86 3. The entire levied amount of nondelinquent special assessments for repairs, budget deficits, or inadequate87 Association reserves shall be paid:88 89 [__] By Seller [__] By Buyer [__] Prorated as follows: ______% by Seller and ______% by Buyer90 91 4. The entire levied amount of nondelinquent special assessments for capital improvements approved by92 the Association for improvements under construction or for completed improvements shall be paid:93 94 [__] By Seller [__] By Buyer [__] Prorated as follows: ______% by Seller and ______% by Buyer95 96 5. The entire levied amount of nondelinquent special assessments for capital improvements approved by97 the Association for which construction has not yet commenced shall be paid:98 99 [__] By Seller [__] By Buyer [__] Prorated as follows: _____% by Seller and _____% by Buyer100 101 M.S.B.A. Real Property Form No. 12 (2002; Revised 2004, 2006, 2008, 2010, 2017) Addendum to Purchase Agreement: Common Interest Community Property ADDENDUM / PAGE 3 of 3 6.Special assessments for extraordinary repairs, budget deficits, or inadequate Association reserves102 assessed after the date of the Purchase Agreement and before the actual date of closing shall be paid103 by Buyer provided the entire special assessment does not exceed $_________ nor exceed $__________ in104 monthly installments. If the special assessment exceeds that amount, Buyer may, at Buyer's option: 105 (a) Assume payment of the special assessment without adjustment to the purchase price of the real property;106 or,107 (b) Require Seller to pay the entire amount of the special assessment (or escrow for payment of same as108 provided above) and Buyer shall pay a commensurate increase in the purchase price of the real property,109 which increase shall be the same as the estimated amount of the assessment; or,110 (c) Rescind this Agreement, in which case all earnest money shall be refunded to Buyer.111 112 7.Special assessments for capital improvements assessed after the date of the Purchase Agreement113 and before the actual date of closing shall be paid by Buyer provided the entire special assessment does114 not exceed $___________ nor exceed $___________ in monthly installments. If the special assessment115 exceeds that amount, Buyer may, at Buyer's option: 116 (a) Assume payment of the special assessment without adjustment to the purchase price of the real property;117 or,118 (b) Require Seller to pay the entire amount of the special assessment (or escrow for payment of same as119 provided above) and Buyer shall pay a commensurate increase in the purchase price of the real property,120 which increase shall be the same as the estimated amount of the assessment; or,121 (c) Rescind this Agreement, in which case all earnest money shall be refunded to Buyer.122 123 8. Buyer shall assume and pay all assessments, fines, and other charges, including special assessments and124 extraordinary expenses, accruing after the date of closing, and all expenses, charges, and assessments,125 payment for which is not otherwise specified in this Addendum. Any assessments paid by Seller to the126 Association prior to closing are Association funds. 127 This Addendum is initialed contemporaneously with the signing of the Purchase Agreement. INITIALS: Sellers___________ ____________ Buyers____________ ____________ RPF12_17_031917.wpd M.S.B.A. Real Property Form No. 22 (2005, 2017) Methamphetamine Disclosure Statement PAGE 1 of 3 METHAMPHETAMINE DISCLOSURE STATEMENT © Copyright 2005, 2017 by Minnesota State Bar Association, Minneapolis, Minnesota. No copyright is claimed for statutory text. The material terms for this DISCLOSURE are contained within the statutes reprinted below. This document, dated , concerns the real property located at:1 [street address] 2 and legally described as: 3 4 5 County, Minnesota [the “Property”].6 7 Seller’s Disclosure: [Check only one box, either A., or B.]8 [__]A. To the best of Seller’s knowledge, methamphetamine production has not occurred on the9 property.10 [If box A., is checked, stop here. The rest of the form should not be completed.]11 [__]B. To the best of Seller’s knowledge, methamphetamine production has occurred on the property12 and Seller makes the following disclosure:13 A county or local health department or sheriff [strike one] has / has not ordered that the property or some14 portion of the property is prohibited from being occupied or used until it has been assessed and15 remediated as provided in the Department of Health’s Clandestine Drug Labs General Clean-up16 Guidelines.17 If such order or orders have been issued complete the following statement:18 The above orders issued against the property [strike one] have / have not been vacated.19 If such order has not been vacated, state the status of removal and remediation on the property: [Use20 additional sheets, if necessary.]21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 Seller(s) signatures:_____________________________ ________________________________ Buyer received this Disclosure on [date]: Buyer(s) signatures:_____________________________ ________________________________ M.S.B.A. Real Property Form No. 22 (2005, 2017) Methamphetamine Disclosure Statement PAGE 2 of 3 [This statute was adopted in Minnesota Session Laws 2005, Chapter 136, Article 7, Sec. 9 effective January 1, 2006.] Minn. Stat. Section 152.0275. CERTAIN CONTROLLED SUBSTANCE OFFENSES; RESTITUTION; PROHIBITIONS ON PROPERTY USE; NOTICE PROVISIONS. Subdivision 1. RESTITUTION. (a) As used in this subdivision: (1) "clandestine lab site" means any structure or conveyance or outdoor location occupied or affected by conditions or chemicals typically associated with the manufacturing of methamphetamine; (2) "emergency response" includes, but is not limited to, removing and collecting evidence, securing the site, removal, remediation, and hazardous chemical assessment or inspection of the site where the relevant offense or offenses took place, regardless of whether these actions are performed by the public entities themselves or by private contractors paid by the public entities, or the property owner; (3) "remediation" means proper cleanup, treatment, or containment of hazardous substances or methamphetamine at or in a clandestine lab site, and may include demolition or disposal of structures or other property when an assessment so indicates; and (4) "removal" means the removal from the clandestine lab site of precursor or waste chemicals, chemical containers, or equipment associated with the manufacture, packaging, or storage of illegal drugs. (b) A court may require a person convicted of manufacturing or attempting to manufacture a controlled substance or of an illegal activity involving a precursor substance, where the response to the crime involved an emergency response, to pay restitution to all public entities that participated in the response. The restitution ordered may cover the reasonable costs of their participation in the response. (c) In addition to the restitution authorized in paragraph (b), a court may require a person convicted of manufacturing or attempting to manufacture a controlled substance or of illegal activity involving a precursor substance to pay restitution to a property owner who incurred removal or remediation costs because of the crime. Subdivision 2. PROPERTY-RELATED PROHIBITIONS; NOTICE; WEB SITE. (a) As used in this subdivision: (1) "clandestine lab site" has the meaning given in subdivision 1, paragraph (a); (2) "property" means publicly or privately owned real property including buildings and other structures, motor vehicles as defined in section 609.487, subdivision 2a, public waters, and public rights-of-way; (3) "remediation" has the meaning given in subdivision 1, paragraph (a); and (4) "removal" has the meaning given in subdivision 1, paragraph (a). (b) A peace officer who arrests a person at a clandestine lab site shall notify the appropriate county or local health department, state duty officer, and child protection services of the arrest and the location of the site. (c) A county or local health department or sheriff shall order that any property or portion of a property that has been found to be a clandestine lab site and contaminated by substances, chemicals, or items of any kind used in the manufacture of methamphetamine or any part of the manufacturing process, or the by-products or degradates of manufacturing methamphetamine be prohibited from being occupied or used until it has been assessed and remediated as provided in the Department of Health's clandestine drug labs general cleanup guidelines. The remediation shall be accomplished by a contractor who will make the verification required under paragraph (e). (d) Unless clearly inapplicable, the procedures specified in chapter 145A and any related rules adopted under that chapter addressing the enforcement of public health laws, the removal and abatement of public health nuisances, and the remedies available to property owners or occupants apply to this subdivision. (e) Upon the proper removal and remediation of any property used as a clandestine lab site, the contractor shall verify to the property owner and the applicable authority that issued the order under paragraph (c) that the work was completed according to the Department of Health's clandestine drug labs general cleanup guidelines and best practices. The contractor shall provide the verification to the property owner and the applicable authority within five days from the completion of the remediation. Following this, the applicable authority shall vacate its order. (f) If a contractor issues a verification and the property was not remediated according to the Department of Health's clandestine drug labs general cleanup guidelines, the contractor is liable to the property owner for the additional costs relating to the proper remediation of the property according to the guidelines and for reasonable attorney fees for collection of costs by the property owner. An action under this paragraph must be commenced within six years from the date on which the verification was issued by the contractor. (g) If the applicable authority determines under paragraph (c) that a motor vehicle has been contaminated by substances, chemicals, or items of any kind used in the manufacture of methamphetamine or any part of the manufacturing process, or the by-products or degradates of manufacturing methamphetamine and if the authority is able to obtain the certificate of title for the motor vehicle, the authority shall notify the registrar of motor vehicles of this fact and in addition, forward the certificate of title to the registrar. The authority shall also notify the registrar when it vacates its order under paragraph (e). (h) The applicable authority issuing an order under paragraph (c) shall record with the county recorder or registrar of titles of the county where the clandestine lab is located an affidavit containing the name of the owner, a legal description of the property where the clandestine lab was located, and a map drawn from available information showing the boundary of the property and the location of the contaminated area on the property that is prohibited from being occupied or used that discloses to any potential transferee: (1) that the property, or portion of the property, was the site of a clandestine lab; (2) the location, condition, and circumstances of the clandestine lab, to the full extent known or reasonably ascertainable; and (3) that the use of the property or some portion of it may be restricted as provided by paragraph (c). If an inaccurate drawing or description is filed, the authority, on request of the owner or another interested person, shall file a supplemental affidavit with a corrected drawing or description. If the authority vacates its order under paragraph (e), the authority shall record an affidavit that contains the recording information of the above affidavit and states that the order is vacated. Upon filing the affidavit vacating the order, the affidavit and the affidavit filed under this paragraph, together with the information set forth in the affidavits, cease to constitute either actual or constructive notice. (i) If proper removal and remediation has occurred on the property, an interested party may record an affidavit indicating that this has occurred. Upon filing the affidavit described in this paragraph, the affidavit and the affidavit filed under paragraph (h), together with the information set forth in the affidavits, cease to constitute either actual or constructive notice. Failure to record an affidavit under this section does not affect or prevent any transfer of ownership of the property. (j) The county recorder or registrar of titles must record all affidavits presented under paragraph (h) or (i) in a manner that assures their disclosure in the ordinary course of a title search of the subject property. (k) The commissioner of health shall post on the Internet contact information for each local community health services administrator. (l) Each local community health services administrator shall maintain information related to property within the administrator's jurisdiction that is currently or was previously subject to an order issued under paragraph (c). The information maintained must include the name of the owner, the location of the property, the extent of the contamination, the status of the removal and remediation work on the property, and whether the order has been vacated. The administrator shall make this information available to the public either upon request or by other means. (m) Before signing an agreement to sell or transfer real property, the seller or transferor must disclose in writing to the buyer or transferee if, to the seller's or transferor's knowledge, methamphetamine production has occurred on the property. [Emphasis added.] If M.S.B.A. Real Property Form No. 22 (2005, 2017) Methamphetamine Disclosure Statement PAGE 3 of 3 methamphetamine production has occurred on the property, the disclosure shall include a statement to the buyer or transferee informing the buyer or transferee: (1) whether an order has been issued on the property as described in paragraph (c); (2) whether any orders issued against the property under paragraph (c) have been vacated under paragraph (i); or (3) if there was no order issued against the property and the seller or transferor is aware that methamphetamine production has occurred on the property, the status of removal and remediation on the property. (n) Unless the buyer or transferee and seller or transferor agree to the contrary in writing before the closing of the sale, a seller or transferor who fails to disclose, to the best of their knowledge, at the time of sale any of the facts required, and who knew or had reason to know of methamphetamine production on the property, is liable to the buyer or transferee for [Emphasis added.]: (1) costs relating to remediation of the property according to the Department of Health's clandestine drug labs general cleanup guidelines and best practices; and (2) reasonable attorney fees for collection of costs from the seller or transferor. An action under this paragraph must be commenced within six years after the date on which the buyer or transferee closed the purchase or transfer of the real property where the methamphetamine production occurred. (o) This section preempts all local ordinances relating to the sale or transfer of real property designated as a clandestine lab site. RPF22_17_032017.wpd M.S.B.A. Real Property Form No. 8 (1997, 2017) Addendum to Purchase Agreement: Wetlands, Shoreland and Flood Plain Disclosure PAGE 1 ADDENDUM TO PURCHASE AGREEMENT: WETLANDS, SHORELAND AND FLOOD PLAIN DISCLOSURE. © Copyright 1997, 2017 by Minnesota State Bar Association, Minneapolis, Minnesota. [Use with "Minnesota Standard Residential Purchase Agreement," M.S.B.A.] This addendum is a continuation of the Purchase Agreement dated 1 by and between , as Sellers,2 and , as Buyers, for3 property located at or described as:4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 2021 PRECAUTION TO BUYERS: Minnesota law and local ordinances restrict the ability to build or22 to rebuild improvements within flood plains, shorelands, and wetlands. These restrictions23 affect homes, garages, outbuildings, wells, and individual on-site sewage treatment systems. 24 You should not excavate in a wetland, fill a wetland or drain a wetland until you have received25 the proper permits from the local governmental agencies having jurisdiction over the26 wetlands.27 28 If you are purchasing property which has existing improvements constructed within flood29 plains, shorelands, or wetlands, the improvements might be “nonconforming” under the law. 30 In other words, you might not be allowed to rebuild the home in the event of a fire or31 windstorm, and you might not be allowed to rebuild the individual on-site sewage treatment32 system if it fails.33 34 If you are purchasing a home which is in a flood plain, you will likely be required by your35 mortgage lender to purchase flood insurance. Your costs for flood insurance over the life of36 the mortgage might exceed $20,000.37 38 39 40 41 M.S.B.A. Real Property Form No. 8 (1997, 2017) Addendum to Purchase Agreement: Wetlands, Shoreland and Flood Plain Disclosure PAGE 2 42 For the purposes of this Purchase Agreement, Wetlands, Shoreland, and Flood Plain are defined as43 follows:44 45 Flood Plain. The term "flood plain" means the area adjoining a water course or water basin46 which has been or hereafter might be covered by the regional flood which recurs once in 10047 years, as defined by MINN. STAT. §103F.111 and by MINN. RULES, Part 6120.5000. The boundary48 of the 100-Year Flood Plain shall be determined by reference to the Flood Insurance Rate Maps49 promulgated by the Federal Emergency Management Agency for the National Flood Insurance50 Program or by reference to Minnesota Department of Natural Resources flood plain elevation51 data.52 53 Shoreland. The term “shoreland” has the meaning given to it by MINN. STAT. §103F.205, Subd. 54 4, as follows: “Shoreland” means land located within the following distances from the ordinary55 high water elevation of public waters:56 (1) land within 1,000 feet from the normal high watermark of a lake, pond, or flowage; and,57 (2) land within 300 feet of a river or stream or the landward side of a flood plain delineated58 by ordinance on the river or stream, whichever is greater.59 60 Wetlands. The term “wetlands” has the meaning given it to by the Minnesota Wetlands61 Conservation Act of 1991, (1991 Minn. Sess. Law Serv. {West}, Chapter 354, as amended from62 time to time, codified as MINN. STAT. §103G.005, Subd. 19(a), as follows: “Wetlands” means63 lands transitional between terrestrial and aquatic systems where the water table is usually at or64 near the surface or the land is covered by shallow water. For purposes of this definition, wetlands65 must have the following three attributes:66 (1) have a predominance of hydric soils;67 (2) are inundated or saturated by surface or ground water at a frequency and duration68 sufficient to support a prevalence of hydrophytic vegetation typically adapted for life in69 saturated soil conditions; and70 (3) under normal circumstances support a prevalence of such vegetation.71 72 73 7475 PRECAUTION TO SELLERS: If you do not understand the definitions above, or the76 disclosures below, or the significance of the “Seller’s Representations” below, you should77 consult with your lawyer before completing this form.78 79 Seller’s Representations. [check all statements that apply:]80 81 a. Flood Plain.Seller represents that 82 [_]1. the real property is not in a flood plain;83 [_]2. all or part of the real property is in a flood plain, but none of the improvements, including84 all buildings, the well, and the individual on-site sewage treatment system is in the flood85 plain or in any setback from a flood plain;86 [_]3. Seller does not know if any of the improvements or the real property is in a flood plain87 or “flood insurance area”, as defined by federal law.88 89 M.S.B.A. Real Property Form No. 8 (1997, 2017) Addendum to Purchase Agreement: Wetlands, Shoreland and Flood Plain Disclosure PAGE 3 b. Shoreland.Seller represents that90 [_]1. the real property is not in a shoreland;91 [_]2. all or part of the real property is in a shoreland, but none of the improvements, including92 all buildings, the well, and the individual on-site sewage treatment system is in any93 setback within a shoreland;94 [_]3. Seller does not know if any of the improvements or the real property is in a shoreland.95 96 97 c. Wetlands.Seller represents that98 [_]1. the real property does not contain wetlands;99 [_]2. part of the real property contains wetlands, but all of the improvements, including all100 buildings, the well, and the individual on-site sewage treatment system are not in the101 wetlands or in any setback from the edge of a wetland;102 [_]3. Seller does not know if the real property has wetlands or if any of the improvements is103 located in wetlands.104 105 d. Conforming / Nonconforming Improvements. If Seller has disclosed the presence of flood plain, shoreland,106 or wetlands on or affecting the property, Seller further discloses that Seller 107 [check one] [_] has [_] has not received notice from any governmental unit indicating that any of the108 improvements is nonconforming under current law. Seller makes no representation about future changes109 to laws which might render the property or the improvements “nonconforming.”110 111 Flood plain, shoreland, and wetlands areas are as shown on the map, drawing or sketch attached as an exhibit. [Attach112 drawing.]113 114 [SELECT EITHER (1) OR (2) , BUT NOT BOTH, BY CHECKING THE BOX AND BY PLACING YOUR INITIALS115 WHERE INDICATED:] 116 117118 [_](1) Buyer is Not Relying on Seller’s Representations. The price offered by Buyer in this Purchase119 Agreement does not reflect any reliance upon any representations made by Seller as to the location or120 presence of wetlands, flood plain, or shoreland. Buyer's obligation to close under this Purchase121 Agreement is contingent upon Buyer obtaining, at Buyer's expense, verification that all or part of the122 real property, the currently existing improvements or intended future improvements are unaffected by123 the presence of wetlands, flood plain, or shoreland. This contingency shall be satisfied by [date]124 ______________________ or be deemed waived. If the contingency is waived by Buyer, the presence125 of wetlands, shoreland, or flood plain, if any, shall be deemed acceptable to Buyer. If Buyer’s126 investigation reveals wetland, shoreland, or flood plain conditions that are unsatisfactory for Buyer’s127 purposes, then Buyer may elect to terminate this Purchase Agreement and receive a full refund of the128 earnest money129 130 “(1), Buyer is Not Relying on Seller’s Representations,” is accepted as a term of this Purchase131 Agreement.132 133 INITIALS: Sellers___________ ____________ Buyers____________ ____________134 135 [ IF YOU INITIAL (1) HERE, DO NOT INITIAL (2), BELOW. ]136 137 138 M.S.B.A. Real Property Form No. 8 (1997, 2017) Addendum to Purchase Agreement: Wetlands, Shoreland and Flood Plain Disclosure PAGE 4 139 [_](2) Buyer is Relying on Seller’s Affirmative Representations. The price offered by Buyer in this140 Purchase Agreement reflects that Buyer is relying upon Seller’s affirmative representations that the land141 and improvements are affected by the presence of wetlands, flood plain, or shoreland only as indicated142 by Seller above. Buyer's obligation to close under this Purchase Agreement is contingent upon Buyer143 verifying, at Buyer's expense, that wetlands, flood plain, or shoreland are as represented by Seller. 144 Buyer’s investigation to satisfy this contingency is limited to any combination of the following: (i)145 physical inspection of the property; (ii) inspection of available, local public records; (iii) survey; or, (iv)146 written determination by the local governmental unit having jurisdiction over any wetlands, flood plain,147 or shoreland. Buyer’s investigation shall be completed by the later of [deadline date]148 ______________________, or 10 days after buyer’s receipt of written determination by the local149 governmental unit having jurisdiction over any wetlands, flood plain, or shoreland or this contingency150 shall be deemed waived.151 152 If Buyer’s investigation reveals a wetland, shoreland, or flood plain and shows that 153 154 a. wetlands, flood plain, or shoreland are not as represented above by Seller; or;155 b. existing improvements are nonconforming under current wetlands, flood plain, or shoreland156 regulations; or,157 c. future improvements cannot be constructed as planned under wetlands, flood plain, or158 shoreland regulations; or,159 d. a mortgage cannot be placed without obtaining flood insurance; 160 161 then, at least 10 days before the Date of Closing or within 10 days after completion of Buyer’s162 investigation, whichever is later, Buyer shall notify Seller of these circumstances, and, prior to closing,163 Buyer may, at Buyer’s option, elect one or more of the solutions at (1), (2), and (3), or Buyer may elect164 (4): [strike out any of the following that are not appropriate]165 166 (1) Offer to reduce the price of the property to a value that reflects the presence of wetlands,167 shoreland, or flood plain and/or the nonconforming status of existing improvements; or,168 169 (2) In the case of nonconforming status for existing improvements, accept the property at170 the stated price provided seller can obtain a recordable, nonrevocable zoning certificate171 or its functional equivalent from the local governmental unit having jurisdiction over any172 wetlands, flood plain, or shoreland indicating that the improvements may be173 reconstructed at any time during the next 30 years in the event of partial or total174 destruction from any cause and that they may be reconstructed at their present size,175 location and elevation; or,176 177 (3) In the case of a flood plain, if flood insurance in available, offer to amend the Purchase178 Agreement to reduce the price by the present value of flood insurance premiums, with179 current "replacement cost" endorsement, paid over a 30-year period on the full value of180 the improvements (present value calculation to use the interest rate currently paid on181 simple savings accounts at Norwest Bank Minnesota, N.A.) or accept Seller’s payment at182 closing of a single, 30-year flood insurance premium, with current "replacement cost"183 endorsement; or,184 185 (4) Terminate this Purchase Agreement and receive a full refund of the earnest money, in186 which case, Seller shall reimburse Buyer for all expenses incurred by Buyer pursuant to187 this Purchase Agreement, including but not limited to all expenses incurred in attempting188 to satisfy any of Buyer’s contingencies and for all expenses of survey and Buyer shall189 assign all rights in and to the survey to Seller.190 191 192 M.S.B.A. Real Property Form No. 8 (1997, 2017) Addendum to Purchase Agreement: Wetlands, Shoreland and Flood Plain Disclosure PAGE 5 “(2), Buyer is Relying on Seller’s Affirmative Representations,” is accepted as a term of this193 Purchase Agreement.194 195 INITIALS: Sellers___________ ____________ Buyers____________ ____________196 197 [ IF YOU INITIAL (2) HERE, DO NOT INITIAL (1), ABOVE. ]198 199 200 201 202 This Addendum is initialed contemporaneously with the signing of the Purchase Agreement. INITIALS: Sellers___________ ____________ Buyers____________ ____________ M.S.B.A. Real Property Form No. 8 (1997, 2017) Addendum to Purchase Agreement: Wetlands, Shoreland and Flood Plain Disclosure PAGE 6 RPF8_17_032017.wpd SKETCH OR DRAWING OF PROPERTY, SHOWING LOCATION OF FLOOD PLAIN, SHORELAND, OR WETLANDS: M.S.B.A. Real Property Form No. 19 (2005, 2017) Addendum to Purchase Agreement: Title Issues PAGE 1 ADDENDUM TO PURCHASE AGREEMENT: TITLE ISSUES © Copyright 2005, 2017 by Minnesota State Bar Association, Minneapolis, Minnesota. No copyright is claimed for statutory text. BEFORE YOU USE OR SIGN THIS ADDENDUM, YOU SHOULD CONSULT WITH A LAWYER TO DETERMINE THAT THIS CONTRACT ADEQUATELY PROTECTS YOUR LEGAL RIGHTS. Minnesota State Bar Association disclaims any liability arising out of use of this form. WARNING TO SELLER AND BUYER: The issues in this Addendum generally require the assistance of a lawyer with experience in real estate title law. If you do not understand the terms of this Addendum, do not sign it until you have been advised by your lawyer. This Addendum is a continuation of the Purchase Agreement dated _________________________, 20_______ by 1 2 and between as Seller, and 3 4 , as Buyer, for property located at:5 6 7 This addendum modifies the provisions of Paragraph 6 of M.S.B.A. Real Property Form No. 1, MINNESOTA STANDARD8 RESIDENTIAL PURCHASE AGREEMENT. Seller discloses that Seller will deliver good and marketable title of record to Buyer9 at closing subject to:10 [Check and initial each term that applies to this Purchase Agreement. Use attachments and supplemental sheets to provide11 complete disclosure.]12 [___]Encumbrances. [Describe each encumbrance or lien. Do not list the liens for property taxes or special assessments as those are13 covered in Paragraph 7 of the Purchase Agreement. Attach a photocopy of each note and mortgage, contract for deed, or lien instrument14 that will not be paid, released, or satisfied before or at closing.]15 16 17 18 [Check here if Buyer is assuming an encumbrance:]19 [___]Assumption of Encumbrances. M.S.B.A. Real Property Form No. 7, FINANCING ADDENDUM FOR ASSUMPTION, is20 attached to the Purchase Agreement.21 22 [___]Reservation of any mineral rights by the State of Minnesota. There [select one} has / has not been any mining activity23 on the property. [If there has been mining activity, describe in detail:]24 25 26 27 [___]Utility, drainage, and other easements. [Describe easements in detail; attach copies of the easement instruments; and attach28 a copy of the plat, a survey, or other depiction.]29 30 31 32 There are / are no improvement or structures within the easement areas. [If there are, describe and depict on an attachment.]33 34 [___]Covenants, conditions, or restrictions of any kind, as stated in a deed, in a declaration (without an35 association), or in another recorded instrument. [Attach copies.]36 37 38 39 40 41 M.S.B.A. Real Property Form No. 19 (2005, 2017) Addendum to Purchase Agreement: Title Issues PAGE 2 [___]Public Road or Right-of-Way. [Describe in detail. Attach sketch or copies of documents.]42 43 44 45 46 47 [___]Riparian Rights. [Describe in detail.] 48 49 50 51 52 53 54 55 [___]Other title matters. [If there are tenants or other parties in possession use ADDENDUM TO PURCHASE AGREEMENT: TENANTS56 AND PARTIES IN POSSESSION, M.S.B.A. Real Property Form No. 20.] 57 58 59 60 61 62 63 64 This Addendum is signed contemporaneously with the signing of the Purchase Agreement.65 I agree to the terms and conditions set forth above. SELLER: (date) SELLER: (date) I agree to the terms and conditions set forth above. BUYER: (date) BUYER: (date) M.S.B.A. Real Property Form No. 19 (2005, 2017) Addendum to Purchase Agreement: Title Issues PAGE 3 RPF19_17_032017.wpd SUPPLEMENTAL PAGE 11 City Council City of Elk River Resolution 19-____ A Resolution of the City Council of the City of Elk River to Vacate a Portion of the Right - of-Way Platted as Western Avenue WHEREAS, the Council, on its own motion, proposes to vacate a portion of the right -of- way platted and publicly dedicated as Western Avenue on the Plat for Westwood Subdivision (“Westwood Plat”) which was originally approved by the Sherburne County Board of Commissioners on February 4, 1953; and WHEREAS, the western border of Westwood Subdivision is demarcated on the Westwood Plat by Western Avenue, a dedicated public right -of-way by language, which states, in relevant part, “hereby dedicate to the public and for the public use forever all avenues, streets, park, and Outlot A.” (“Western Avenue”); and WHEREAS, SNL Island View Properties, LLC owns a single-family home at 13002 Island View Drive, Elk River, Minnesota. The house and lot are located on the southern half of Lot 6 and Lots 7 -10, Block 5 of Westwood Subdivision; and WHEREAS, Westwood Subdivision is bordered to the west by Island V iew Subdivision; and WHEREAS, the plat for Island View Subdivision (“Island View Plat”) was approved by the Sherburne County Board of Commissioners on July 12, 1961; and WHEREAS, Western Avenue has been the subject of a lawsuit, John & Elaine Dryer v. City of Elk River, & SNL Island View Properties, LLC, Case File No. 71-CV-18-705 (“Lawsuit”); WHEREAS, the Lawsuit concerned, in part, the encroachment onto Western Avenue of a septic system utilized by the adjacent pro perty owned by John and Elaine Dryer (“Dryers”), 13008 Island View Drive, legally described as: Lot 14, Block 1, Island View Subdivision; and WHEREAS, the parties to the Lawsuit executed a Contingent Settlement Agreement, dated July 1, 2019 (“Settlement Agreement”); and WHEREAS, pursuant to the Settlement Agreement, SNL Island View Properties, LLC (“SNL”) agreed to purchase 13008 Island View Drive; and WHEREAS, the Closing of the purchase has not yet occurred, and the Purchase Agreement between SNL and the Dryers contemplates approval of this Resolution ; and WHEREAS, the Settlement Agreement contemplated the vacation of the Right-of-Way, defined below, as part of a global resolution of the Lawsuit; and 12 WHEREAS, after vacation of the Right -of-Way, the Settlement Agreement also contemplates that SNL will seek a boundary line adjustment across plat boundaries to unify the property underlying the Right-of-Way with 13008 Island View Drive, so that the septic system will be in the parcel boundaries of 13008 Island View Drive; and WHEREAS, there are no known utilities in the right-of-way; and WHEREAS, pursuant to Minn. Stat. § 412.851, after two (2) weeks’ published and posted noticed of a public hearing and after mailing written notice of a public hearing at least ten (10) days before the hearing to each property owner affected by the proposed vacation, the Elk River City Council has conducted a hearing to consider the vacation of a right -of-way legally described and shown on the attached Exhibit 1 (Right-of-Way); and WHEREAS, a public hearing was held on July 15, 2019, before the City Council of the City of Elk River after published and posted notice had been given, and all persons interested were given an opportunity to be heard at the public hearing; and NOW, THEREFORE, the City Council of the City of Elk River, Minnesota makes the following: FINDINGS A. The vacation proposed is contemplated by the Settlement Agreement and is a necessary step to settling the Lawsuit. B. The right-of-way has never been improved or open for use by the public for travel, and there are no known public utilities. C. The City has an interest in ensuring that the septic system at 13008 Island View Drive is properly contained within the boundaries of the parcel as expanded . The vacation is, therefore, a necessary condition precedent to the boundary line adjustment being sought by SNL. D. The Closing of the purchase of the Property at 13008 is contingent upon the City’s approval of a boundary line adjustment and the vacation contemplated herein. E. The proposed vacation will allow the City to retain the right-of-way south of the vacated portion as shown on Exhibit 1 and, therefore, the City will be able to expand the Park directly adjacent to the right-of-way. F. For the foregoing reasons, it is in the public interest to vacate the Right -of-Way as shown on the attached Exhibit 1. G. The proposed vacation shall not affect existing easements for utilities , if any, therein. 13 DECISION NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Elk River, Minnesota, as follows: 1. The Right-of-Way legally described on the attached Exhibit 1 is hereby vacated contingent upon the Closing of the Property at 13008 Island View Drive . The vacation shall not affect existing easements for utilities therein. 2. The City Clerk is hereby directed to file a certified copy of this Resolution with the County Auditor and the County Record/Registrar of Titles in accordance with the terms of this Resolution. This resolution was adopted by the City Council of the City of Elk River on this ___ day of July 2019, by a vote of ____ayes and ____nays. ______________________________ John J. Dietz, Mayor ATTEST: ____________________________ Tina Allard, City Clerk 14 EXHIBIT 1 15 EXHIBIT C BOUNDARY ADJUSTMENT – FINAL PLAT 16 EXHIBIT D LICENSE AGREEMENT 17 EXHIBIT E STIPULATION FOR DISMISSAL 18 STATE OF MINNESOTA COUNTY OF SHERBURNE DISTRICT COURT TENTH JUDICIAL DISTRICT ______________________________________________________________________________ John and Elaine Dryer, Plaintiffs, v. City of Elk River and SNL Island View Properties, LLC, Defendants. Case Type: Quiet Title Case File No.: 71-CV-18-705 Judge Mary A. Yunker STIPULATION ORDER FOR DISMISSAL ______________________________________________________________________________ The undersigned attorneys hereby advise the Court that all claims by John and Elaine Dryer against the City of Elk River and SNL Island View Properties, LLC and all claims by the City of Elk River against John and Elaine Dryer in the above -entitled cause of action have been full y compromised and settled. Therefore, IT IS HEREBY STIPULATED BY AND BETWEEN all the parties hereto, through their respective undersigned attorneys, that all claims by John and Elaine Dryer against the City of Elk River and SNL Island View Properties, LLC and all claims by the City of Elk River against John and Elaine Dryer may be, and hereby are, dismissed on the merit s and with prejudice. IT IS FURTHER STIPULATED, that without further notice, a Judgment of Dismissal with Prejudice upon the merits of all claims by and between John and Elaine Dryer and the City of Elk River and SNL Island View Properties, LLC, which includes all claims for costs, disbursements and attorney’s fees, by and between John and Elaine Dryer, the City of Elk River, and SNL Island View Properties, LLC, may be entered herein. 19 Date: _____________ /s/______________________ Douglas A. Boese (#120935) DUNLAP & SEEGER, P.A. 30 3rd Street SE, Suite 400 P.O. Box 549 Rochester, MN 55903 Tel: (507) 288-9111 dab@dunlaplaw.com Attorneys for Plaintiffs Date: _____________ /s/______________________ George C. Hoff (#45846) Jared D. Shepherd (#0389521) Hoff Barry, P.A. 775 Prairie Center Drive, Suite 160 Eden Prairie, MN 55344 Tel: (952) 941-9220 ghoff@hoffbarry.com jshepherd@hoffbarry.com Attorneys for Defendant City of Elk River Date: _____________ /s/______________________ Sholly A. Blustin (#186879) BLUSTIN & ASSOCIATES, PLLC 19230 Evans Street NW Suite 103 Elk River, MN 55330 Tel: (651) 243-0248 sablustin@blustinlaw.com Attorneys for Defendant SNL Island View Properties, LLC 20 ORDER The foregoing Stipulation, having been presented to the Court on behalf of the above parties and upon review of the Court file herein, the Court acknowledges the settlement of this action by and between John and Elaine Dryer, the City of Elk River, and SNL Island View Properties, LLC, and, as a result, IT IS HEREBY ORDERED that the above-entitled action by and between John and Elaine Dryer, the City of Elk River, and SNL Island View Properties, LLC, be, and the same hereby is, dismissed with prejudice and on its merits in its entirety and without costs or disbursements to any party. LET JUDGMENT BE ENTERED ACCORDINGLY. Dated this ___ day of ______________, 2019. BY THE COURT: ______________________________ The Honorable Mary A. Yunker JUDGMENT The foregoing shall constitute the judgment of the Court, entered on _____________ __, 2019. ______________________________ Court Administrator