Addendum to Agreement for Sale of Real Estate Ann Rollins T O-S a l e
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ADDENDUM TO
AGREEMENT FOR SALE OF REAL ESTATE
THIS ADDENDUM made and entered into as of the 271-day of January,
2003, by and between the CITY OF SALINA, KANSAS, hereinafter referred to as
Seller, and DANA F. GUSTAFSON and KATRINKA GUSTAFSON, husband and
wife, hereinafter referred to as Buyers.
WHEREAS, the parties entered into a certain Agreement For Sale of Real
Estate dated October 15, 2002, whereby Buyers agreed to purchase certain real estate
from Seller; and
WHEREAS, certain requirements have mandated the extension of said
Agreement for Sale of Real Estate and for the addition of certain provisions to said
Agreement; and
WHEREAS, the parties hereby agree to enter into an Addendum to
Agreement For Sale of Real Estate dated October 15, 2002, for the purpose of allowing
additional time to comply with said requirements.
IT IS AGREED AS FOLLOWS:
1. Paragraph 2 of said Agreement For Sale of Real Estate dated
October 15, 2002 between the parties shall now read as follows:
Purchase price. Buyers hereby covenant and agree to pay to ('
Seller and Seller hereby agrees to accept as the full purchase
price for the premises, the sum of Forty-Four Thousand One
Hundred Dollars ($44,100.00)to be paid as follows:
(a) Eight Hundred Ten Dollars ($810.00)has
previously been paid by the Buyers to the Mid-Kansas Title
Services, Inc., Salina, Kansas, who is hereby designated as
Escrow Agent and shall be held as earnest money.
(b) The balance of the purchase price for
said real estate in the amount of Forty-Three Thousand Two
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Agreement doc
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Hundred Ninety Dollars ($43,290.00), shall be payable in
cash or cash equivalent at the time of closing.
The amount held in escrow as earnest money may increase
from month-to-month depending upon the amount of rent paid
by the Buyers. Additional monies paid in shall reduce the
final balance owed at the time of closing.
2. Paragraph 5 of said Agreement For Sale of Real Estate dated
October 15, 2002 between the parties shall now read as follows:
Closing Date and Possession. This contract shall be closed
on or before April 1, 2003, or at such other time as mutually
agreed upon. On the closing date the Buyers shall take
possession of the premises as the owner thereof and thereafter
shall bear the sole risk of loss and damage by fire, the
elements or by any other cause whatsoever. Seller and Buyers
acknowledge and agree that the closing date of this contract
may be extended pursuant to the provisions of paragraph 4
above.
3. Paragraph 9 of said Agreement For Sale of Real Estate dated
October 15,2002 between the parties shall now read as follows:
Taxes and Assessments. The real estate taxes and
assessments for 2002 and all prior years shall be paid by the
Seller. Taxes and assessments for the year 2003 shall be
prorated between Seller and Buyers as of the date of closing,
with the portion thereof prior to said date being the
responsibility of Seller and the portion thereof subsequent to
said date being the responsibility of the Buyers. Taxes and
assessments for subsequent years shall be the responsibility of
the Buyers. f,
pp
4. An additional paragraph number 16 shall be added to said
Agreement For Sale of Real Estate dated October 15, 2002 between the parties and
shall read as follows:
Veterans Administration Reituirements. It is
expressly agreed that nothwithstanding any other
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K Ann Rollins- ddendu mtoS
Sale A•r eem�.e nt-.d'.o__.�.c
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provisions of this Agreement, the Buyers shall not be
obligated to complete the purchase of the property
described herein or to incur any penalty by forfeiture of
earnest money deposits or otherwise unless the Buyers
have been given, in accordance with HUD/FHA or VA
requirements, a written statement by the Federal
Housing Commissioner, Veterans Administration, or a
Direct Endorsement lender setting forth the appraised
value of the property of not less than $44,100.00. The
Buyers shall have the privilege and option of
proceeding with consummation of the Agreement
without regard to the amount of the appraised
valuation. THE APPRAISED VALUATION IS
ARRIVED AT TO DETERMINE THE MAXIMUM
MORTGAGE THE DEPARTMENT OF HOUSING
AND URBAN DEVELOPMENT WILL INSURE.
HUD DOES NOT WARRANT THE VALUE NOR
THE CONDITION OF THE PROPERTY. THE
BUYERS SHOULD SATISFY THEMSELVES THAT
THE PRICE AND CONDITION OF THE
PROPERTY ARE ACCEPTABLE.
IN WITNESS WHEREOF, the parties have executed this addendum as of
the date first above written.
City of Salina, Kansas
By: _ A-a-> _A- NY�,
istin M. Seaton, ayor
SELLER
ATTEST:
B Y: Al-4)-'1/4441-A211-0-40-1&..)
Lieu Ann Nicola, City Clerk
o
/ ` F�I
Dana F. Gustafson
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Ann Rollins Addendum .
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Katrinka Gustafson
BUYERS
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AGREEMENT FOR SALE OF REAL ESTATE
FILE copy
THIS AGREEMENT made and entered into as of the day of October,
2002, by and between the CITY OF SALINA, KANSAS, hereinafter referred to as Seller,
and DANA F. GUSTAFSON and KATRINKA GUSTAFSON, husband and wife,
hereinafter referred to as Buyers.
IT IS AGREED AS FOLLOWS:
1. Agreement to Buy and Sell. The Seller hereby agrees to sell
and convey to the Buyers and the Buyers hereby agree to purchase from the Seller, free and
clear of all encumbrances, but subject to easements and restrictions of record, the following-
described real estate situated in Saline County, Kansas, to-wit:
Lot Eleven (11), Block Four (4), Eisenhower Addition to the
City of Salina, Saline County, Kansas
AKA: 677 Viemont Avenue
together with all improvements situated thereon and all fixtures located therein. All of the
above-described property shall be referred to hereafter as the "premises".
2. Purchase price. Buyers hereby covenant and agree to pay to
Seller and Seller hereby agrees to accept as the full purchase price for the premises, the sum
of Forty-Four Thousand One Hundred Dollars ($44,100.00) to be paid as follows:
(a) Seven Hundred Forty-Nine Dollars ($749.00) has
previously been paid by the Buyers to the Seller and shall be forwarded to Mid-Kansas Title
Services, Inc., Salina, Kansas, who is hereby designated as Escrow Agent and shall be held
as earnest money.
(b) The balance of the purchase price for said real estate in
the amount of Forty-Three Thousand Three Hundred Fifty-One Dollars ($43,351.00), shall
be payable in cash or cash equivalent at the time of closing.
3. Execution and Delivery of Deed. Seller shall convey
marketable title to Buyers by a Joint Tenancy Warranty Deed (in the form of the Joint
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Tenancy Warranty Deed attached hereto as Exhibit "A") to be delivered to Buyers at the
closing of this contract contemporaneously with Buyers' payment of the balance of the
purchase price, free of all liens and encumbrances, except:
a. encumbrances created by the Buyers;
b. zoning or deed restrictions and easements, covenants and
reservations of record; and
c. installments, if any, of special assessments not yet due and
payable, and general taxes and assessments for the year
2002 and subsequent years.
The cost of recording said deed shall be paid by Buyers.
4. Title. Seller shall obtain a commitment by a title insurance
company licensed in the State of Kansas to issue an Owner's Policy of Title Insurance in the
amount of Forty-Four Thousand One Hundred Dollars ($44,100.00) guaranteeing title to the
premises to be conveyed by the Seller to the Buyers hereunder, subject to easements
Y Y � subject easements,
restrictions and other standard exceptions designated in Schedule B of such title insurance
commitment. At the time of closing the Buyers shall pay the total premiums and charges
required by said title insurance company for the issuance of said title insurance policy.
Upon delivery of the preliminary owner's title insurance report, Buyers shall have a
reasonable time, not to exceed five (5) business days, to examine the same and return the
same to Seller with any written objections concerning the marketability of the title or any
such objections shall be deemed waived. If Seller shall be unable to deliver marketable title
as herein provided, the earnest money deposit shall be returned to Buyers and this contract
shall be of no further force or effect; provided, however, Seller shall have reasonable time
not to exceed ninety(90) days to satisfy any valid objections to title.
5. Closing Date and Possession. This contract shall be closed on
or before October 31, 2002, or at such other time as mutually agreed upon. On the closing
date the Buyers shall take possession of the premises as the owner thereof and thereafter
shall bear the sole risk of loss and damage by fire, the elements or by any other cause
whatsoever. Seller and Buyers acknowledge and agree that the closing date of this contract
may be extended pursuant to the provisions of paragraph 4 above.
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6. Proration of Rent, Seller and Buyers acknowledge that the
real property described in paragraph 1 above is currently subject to a lease agreement
between the parties. Rents shall be payable by Buyers to Seller under said lease agreement
until the date of closing but shall be prorated to said closing date with no rents due and
owing after said date. Seller shall pay to the Buyers an amount equal to Buyers' prorated
share of the monthly rent at closing.
7. Inspection. Buyers acknowledge that they have been in
possession of the premises as the Seller's tenants; are aware of the general condition of the
premises and agree to accept the premises in its current"as is"condition.
8. FEMA. Buyers acknowledge and agree that Seller has made
no representations or warranties to them relative to the inclusion or exclusion of the real
estate described above in paragraph 1 from a flood fringe area or flood-way area, as the
same are defined by the Federal Emergency Management Agency (FEMA). Buyers agree
to make any and all inquiries deemed appropriate or required in said regard, and further
agree that the exclusion of the real estate described above in paragraph 1 from said
described areas is not a condition to the closing of this Contract.
9. Taxes and Assessments. The real estate taxes and assessments
for 2001 and all prior years shall be paid by the Seller. Taxes and assessments for the year
2002 shall be prorated between Seller and Buyers as of the date of closing, with the portion
thereof prior to said date being the responsibility of Seller and the portion thereof
subsequent to said date being the responsibility of the Buyers. Taxes and assessments for
subsequent years shall be the responsibility of the Buyers.
10. Escrow. The Mid-Kansas Title Co., Inc. is hereby designated
Escrow Agent of both parties. All monies paid and to be paid prior to the closing of this
transaction, and the deed and other papers that may be delivered hereunder, shall be paid
and delivered to said Escrow Agent, who shall hold and then pay and deliver the same to the
respective parties entitled thereto upon full performance by the parties of all the terms of
this contract. The parties further agree that the Escrow Agent is the real estate reporting
person as that term is defined under the Internal Revenue Code Section 6045(e) and that
said agent shall file the information return required by said Code Section. Escrow fees, if
any, shall be paid by Buyers. Buyers acknowledge and understand that this contract has
been drafted by Seller's attorney, and the Buyers have obtained independent legal advice
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concerning said contract or have otherwise satisfied themselves that said contract adequately
protects their interests and acknowledges that Seller's attorney is not representing them in
connection with this sale and purchase.
11. Risk of Loss. The Seller shall assume all risk of loss,
destruction or damage due to fire or other casualty up to the date of closing of this
agreement. In the case of partial damage or destruction of the premises prior to the closing
date, the Seller shall promptly repair the damage and restore the premises to its present
condition; provided, however, that in the case the improvements located on the premises
should be damaged by fire or other casualty to such an extent as to render the premises
untenantable, then either the Buyers or the Seller may elect to cancel this agreement, in
which event all rights and obligations of the parties shall forthwith terminate. Until the
closing date, the Seller shall maintain fire and extended coverage insurance and shall be
entitled to receive all insurance proceeds payable by reason of any covered loss.
12. Warranties of Seller. Seller warrants that the premises are
now and at the time of closing will be free and clear of all liens and encumbrances, except
easements and restrictions which now appear of record, and that all contracts,
subcontractors, materialpersons, laborers, and suppliers will have been paid for all work
done which might form the basis of a mechanic's lien.
g amc s lien
13. Default. [f either Seller or Buyers shall fail to perform the
covenants of this contract, the other shall have the option to declare this contract to be null
and void or, in the alternative, such party may require the specific performance of this
contract and recover damages resulting from the failure to so perform. If Buyers fail to
perform, Seller may retain the earnest money paid, less expenses incurred, to apply to
Seller's damages.
14. No commissions. Each of the parties hereto represents and
warrants to the other that they have not engaged any real estate agent in connection with this
transaction and that they have taken no other action which might expose the other to any
risk of having to pay any commission or other charge in connection with the closing of this
transaction.
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15. Extent of Agreement. The rights and obligations under this
agreement shall be available to and binding upon the parties hereto and their respective legal
representatives, heirs, successors and assigns.
IN WITNESS WHEREOF, the parties have executed this agreement as of the
date first above written.
City of Salina, Kansas
By:
stin M. Sea n, Mayor
SELL R
ATTEST:
By: LAkadjuLlilitit/A)
Lieu Ann Nicola, City Clerk
Dana F. Gustafson
Katrinka Gustafson
BUYERS
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ACCEPTANCE OF ESCROW AGENT
The Mid-Kansas Title Co., Inc., hereby agrees to act as Escrow Agent under
the foregoing Real Estate Contract, and acknowledges receipt of a copy of said contract
and the Joint Tenancy Warranty Deed referred to in paragraph 3, all on this day of
October, 2002.
The Mid-Kansas Title Co., Inc.
By:
Robert M. Wasko, President
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U.S. Department of HUD
400 State Avenue
Kansas City, Kansas 66101-2406
U.S. DEPARTMENT OF HOUSING AND DEVELOPMENT
RELEASE OF DECLARATION OF TRUST
KNOW ALL MEN BY THESE PRESENTS:
• That the United States of America, acting by and through the Secretary of the
Department of Housing and Urban Development, does hereby acknowledge that a certain
Declaration of Trust is as follows:
1. That said real estate, described below, is a encumbered by a Declaration of
Trust between the Salina Housing Authority and the United States of America,
Secretary of Housing and Urban Development (referred to as "HUD" in said
document), dated August 29, 1991, and recorded in Misc. Book 150 at pages
672-675;
That the said Declaration of Trust provides that the endorsement by a duly
authorized officer of the Government upon any instrument transferring or conveying a
dwelling unit, or an interest therein, to a member of a tenant family shall be effective to
release such property from the trusts thereby created;
That the following described property covered by said Declaration of Trust has
been transferred to a low-moderate income eligible family per the approved HUD Section
5 (h) Plan:
Lot Eleven (11), Block Four(4), Eisenhower Addition to the City of
Salina, Saline County, Kansas
AKA: 677 Viemont Avenue
That the United States of America through the Department of Housing and Urban
Development does hereby acknowledge that the said Declaration of Trust is SATISFIED,
RELEASED, AND DISCHARGED.
Signed this the day of October, 2002
UNITED STATES OF AMERICA
Department of Housing and Urban Development
By:
Andrew L. Boeddeker, Director of the Office of Public Housing
Authorized Agent
STATE OF KANSAS )
):ss
COUNTY OF WYANDOTTE )
On this day of October, 2002, before me, the undersigned, a Notary Public in
and for said county, personally came Andrew L. Boeddeker, with whom I am personally
acquainted, and who, upon oath, pursuant to a Delegation of Authority, acknowledged
himself to be the Director of the Office of Public Housing of Kansas City Office of the
Department of Housing and Urban Development, and as such, the Authorized Agent of
the Secretary of Housing and Urban Development, and that he executed the foregoing
instrument for the purposes therein contained, by signing the name of the Secretary by
himself as Authorized Agent. Witness my hand and seal, this day of October, 2002.
NOTARY PUBLIC
My Commission Expires:
Notary Public