Contract of Sale of Real Estate - 309-311 N. Tenth Street CONTRACT OF SALE OF
REAL ESTATE
This Contract is made as of this,21)}}'1 day of November, 2017, between RealTek, L.L.C., a
Kansas limited liability company, ("Seller')and the City of Salina, Kansas("Buyer").
Section 1 Property. Seller agrees to sell to Buyer, and Buyer agrees to purchase from Seller the
following-described real estate in Saline County, Kansas:
The East One Hundred and Five(105) feet of Lot Forty-two (42), Tenth (101 Street,
Bishop's Addition to the City of Salina, Saline County, Kansas,
together with all improvements located thereon and appurtenances thereto, free and clear of all liens,
charges, and encumbrances whatsoever, but subject to easements and restrictions of record, if any
(`'the Property").
Section 2 Purchase Price. The purchase price for the Property shall be the sum of$53,000 (the
"Purchase Price"), payment of which shall be made to the Escrow Agent on the Closing Date.
Section 3 Payment of Expenses. Buyer shall pay the following items:
(a) Cost of preparing the contract and deed:
(b) Cost of the title insurance premium;
(c) Escrow fee, if any: •
(d) Closing fee; and
(e) Cost of recording the deed.
Section 4 Escrow Agent. Mid-Kansas Title Co. Inc., Salina, Kansas, shall be the Escrow Agent of
the parties. Escrow Agent shall hold all payments in an escrow or trust account pursuant to Kansas
statutes to disburse at Closing as provided in this Contract. If doubt or a question arises as to
liabilities, Escrow Agent may (a) continue to hold all funds until the parties mutually agree in
writing or until a court of competent jurisdiction determines the rights of the parties, or (b) deposit
all funds so held with the Clerk of the District Court of Saline County, Kansas, and, after notifying
all parties in writing, Escrow Agent's liability shall cease, except to account for any sums
previously delivered.
Section 5 Evidence of Title. As soon as reasonably possible after execution of this Contract. Buyer
shall request the preparation of a commitment for an owner's title insurance policy in the amount of
the Purchase Price, insuring Buyer's title, subject only to encumbrances, exceptions, or
qualifications set forth in this Contract, and those which shall be discharged by Seller at or before
Closing. If Seller cannot furnish marketable title to the Property, then this Contract shall be null and
void and any payment made by Buyer hereunder shall be refunded to Buyer, less Buyer's unpaid
costs pursuant to Section 3. Buyer may pursue any remedies available at law or in equity. If a
dispute arises between the parties about marketability of the title, the Title Standards adopted from
time to time by the Bar Association of the State of Kansas, and the Kansas Marketable Title Act, as
amended, shall control.
Section 6 Closing Date. The Closing Date shall be on a date to be agreed upon among Seller,
Buyer, and Escrow Agent reasonably following Buyer's fulfillment of its obligation under Section 5
above and its ability to deliver unoccupied possession of the Property, but in no event later than
March 20, 2018. "Closing" means the settlement of the obligations of Seller and Buyer to each
other under this Contract, including the payment of the Purchase Price to Seller, and the delivery to
Buyer of a deed, in proper form for recording, to transfer to Buyer fee simple title to the Property
free of all encumbrances except as herein stated.
Section 7—Possession and Relocation of Tenants.
(a) The Property is a duplex and either is or has most recently been occupied under month-to-
month tenancies by the following two tenants: Eduardo deSantiago and Don Griffin (the "Current
Tenants"): Seller agrees to (a) notify the Current Tenants of the termination of their respective
month-to-month tenancies and the date they are each required to relinquish possession of the
Property, and (b) address any matters relating to rent and reimbursement of deposits. Seller
agrees that the notice to the Current Tenants will inform them that the termination of their
tenancies is prompted by the City's purchase of the Property and that upon relocating on or
before the date Seller specifies, the City will pay each tenant the amount equal to two months
current rent to assist them as they relocate ("Relocation Payment"), as follows:
Eduardo deSantiago: $700 (monthly rent of$350 per month times two months)
Don Griffin: $680 (monthly rent of$340 per month times two months)
(b) A Current Tenant who does not relinquish possession by the deadline stated in the notice
from Seller shall not qualify for the payment by the City of the Relocation Payment. If Seller
must initiate an eviction proceeding against either Current Tenant to transfer unoccupied
possession of the Property by the Closing Date, the City agrees to reimburse Seller up to the
amount of the Relocation Payment that would have been payable to the Current Tenant
remaining in possession to reimburse Seller for up to Seller's actual costs in the filing fee and
reasonable attorney fees necessary to evict the Current Tenant. Buyer's reimbursement
obligation shall extend only to the filing fee and reasonable attorney fees required for completing
the eviction proceeding necessary for Seller to transfer unoccupied possession of the Property,
not collection of any back rent payable to Seller.
(c) All rent payable to Seller prior to Closing Date shall be the property of Seller. Seller,
however, agrees to terminate the tenancies of the Current Tenants as of a date that will allow
time for an eviction proceeding if that becomes necessary to deliver unoccupied possession of
the Property by the Closing Date.
Section 8 Restrictions, Easements, Limitations, Taxes. Buyer shall take title subject to the
following: zoning, restrictions, prohibitions, or other requirements imposed by governmental
authority; restrictions, covenants, and matters appearing on the plat or of record; and public utility
easements of record. Seller and Buyer shall prorate as of the Closing Date all real property taxes,
special assessments, and other like charges (collectively "Taxes") that are due (or estimated to be
due) for the year in which the Closing occurs. Seller shall be responsible for all Taxes for prior
years.
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Section 9 Insurance and Casualty Loss. Seller agrees to maintain in force until the Closing Date, all
casualty insurance now in effect on the Property, when said insurance shall be canceled. In the
event of loss or damage by fire, flood, wind, hail or other causes to the Property before the Closing
Date, the proceeds of any insurance on such Property shall belong to Seller; provided, however,
Seller agrees that the Purchase Price shall be reduced by the amount of such insurance proceeds
paid to Seller.
Section 10 Liens. Seller certifies that at Closing there will be no lien claimants, potential lien
claimants, nor improvements made to the Property within 120 days before the Closing Date. If
there have been improvements on or to the Property within 120 days before the Closing Date, Seller
shall deliver releases or waivers from the general contractors, subcontractors, suppliers and
materialmen furnishing the labor or materials for such improvements, with such affidavits as Buyer
may reasonably require naming such persons and reciting that all bills that might serve for a basis
for mechanics' liens have been or will be paid before or at Closing.
Section 11 Conveyances. Seller shall properly execute a general warranty deed conveying the
Property to Buyer free and clear of all liens and encumbrances whatsoever, except as herein
provided, and shall place the general warranty deed in escrow with the Escrow Agent as soon as
reasonably possible. If Buyer fully complies with the provisions of this Contract, then the Escrow
Agent shall deliver the deed and other documents related to the Property to Buyer. No title shall
pass hereunder to Buyer but shall remain in Seller until the foregoing conditions have been fully
complied with.
Section 12 No Warranties by Seller as to Condition of Property. Seller is making no warranties of
any kind regarding the condition of the Property, and Buyer is not asking for any such warranty
from Seller. Buyer warrants, therefore, that it has inspected the Property and agrees to accept it "as
is," and waives any and all claims against Seller, whether currently known or unknown, resulting
from any condition related to the Property.
Section 13 - Removal of Personal Property or Fixtures. Prior to Closing, Seller may remove and
retain any personal property and fixtures from the Property that will not affect Buyer's ability to
safely heat and secure the Property from intruders.
Section 14 Utilities. Seller is entitled to all utility deposits, if any, currently on file with local utility
providers. Seller shall pay all utility charges up through the Closing Date.
Section 15 Default by Seller. In the event Seller is unable or fails to furnish marketable title or
possession as agreed in this Contract, Buyer may cancel this Contract and all payments made by
Buyer shall be refunded to Buyer, less Buyer's unpaid costs incurred pursuant to Section 3. If
Seller's failure to furnish marketable title or possession to Buyer is caused by Seller's willful act or
omission. Buyer shall be entitled to pursue any remedies available at law or in equity.
Section 16 Assignment. This Contract and any right or interest in the Property shall not be the
subject of an assignment by either Seller or Buyer.
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Section 17 No Commission. The parties stipulate that they have not consulted with any real estate
broker or salesperson with respect to this sale, and no commissions arising from this sale are due
and owing.
Section 18 Real Estate Reporting Person. The parties agree that the Escrow Agent is the real estate
reporting person as that term is defined under Internal Revenue Code Section 6045(e). Seller agrees
to provide Escrow Agent with a written statement, certified under penalties of perjury, setting forth
Seller's correct name, address, and taxpayer identification number. The parties further agree that
Escrow Agent shall be required to file the informational return required by Internal Revenue Code
Section 6045.
Section 19 Representation of Parties. The law firm of Clark, Mize & Linville, Chartered, Salina,
Kansas, represents Buyer. Seller understands that it has the right to seek independent legal
counsel of its choosing to represent it and to advise it with respect to this matter. By executing
this Contract, Seller represents that it has either sought the advice of separate counsel of its
choosing or has elected to proceed without separate counsel herein, and that Buyer's attorney is
not representing Seller and has not advised Seller with respect to this matter.
Section 20 Captions. The captions heading the various paragraphs of this Contract are for
convenience and shall not be considered to limit, expand, or define the contents of the respective
paragraphs.
Section 21 Feminine, Masculine, Singular, and Plural. Wherever used, singular shall include the
plural, plural the singular, and use of any gender shall include all genders.
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Section 22 Kansas Law Applies. This Contract and its validity, construction and performance shall
be governed by the laws of Kansas. This Contract shall be interpreted according to its fair meaning,
and not in favor of or against any party.
Section 23 - Statutory Compliance. The following disclosures are made to comply with statutory
mandates:
23.1 Sexual Predators. Kansas law requires persons who are convicted of certain
crimes, including certain sexually violent crimes, to register with the sheriff of the county
in which they reside. If you, as the buyer, desire information regarding those registrants,
you may find information on the homepage of the Kansas Bureau of Investigation (KBI)
at http://www.Kansas.gov/kbi or by contacting the local sheriffs office.
23.2 Radon Gas. Every buyer of residential real property is notified that the property
may present exposure to dangerous concentrations of indoor radon gas that may place
occupants at risk of developing radon induced lung cancer. Radon, a Class-A human
carcinogen, is the leading cause of lung cancer in non-smokers and the second leading
cause overall. Kansas law requires sellers to disclose any information known to the seller
that shows elevated concentrations of radon gas in residential real property. The Kansas
Department of Health and Environment recommends all home buyers have an indoor
radon test performed prior to purchasing or taking occupancy of residential real property.
All testing for radon should be conducted by a radon measurement technician. Elevated
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radon concentrations can be easily reduced by a radon mitigation technician. For
additional information, go to www.kansasradonprogram.org.
23.3 Lead Paint Disclosure. The parties understand that pursuant to 24 CFR Subtitle A,
§35.80 et. seq., every purchaser of any interest in residential real property on which a
residential dwelling was built before 1978, must be notified regarding the presence of lead-
based paint that may place young children at risk of developing lead poisoning. As such the
parties agree to execute and abide by the Lead Warning Statement attached hereto as Exhibit
A.
Section 24 Severability. The unenforceability, invalidity, or illegality of any provision of this
Contract shall not render the other provisions unenforceable, invalid, or illegal.
Section 25 Time. Time is of the essence of this Contract. No extension will be granted unless in
writing and signed by the parties.
Section 26 Persons, Bound Copies. This Contract shall extend to and bind the heirs, executors,
administrators, trustees, successors and assigns of the parties hereto, and may be executed in any
number of counterparts, each of which shall be deemed an original, or in multiple originals, and all
such counterparts or originals shall for all purposes constitute one Contract.
Section 27 Typewritten or Handwritten Provisions. Typewritten or handwritten provisions inserted
or attached shall supersede all conflicting printed provisions.
Section 28 Merger Clause. The parties intend these terms to be a complete, conclusive, and final
expression of all the conditions of their Contract. No other promises, statements, warranties,
contracts, or understandings, oral or written, made before or at the signing thereof, shall be binding
unless in writing and signed by all parties and attached hereto. Any amendment to this Contract,
including an oral modification supported by new consideration, must be reduced to writing and
signed by both parties before it will be effective.
IN WITNESS WHEREOF, the parties have hereunto.set their hands the day and year first
above written.
"S el ler" "Buyer"
REALTEK, L.L.C. CITY OF SALINA, KANSAS
J 1. Iffg ' ':er c
vford,Mayo
Attest:
d
By: NACLAICIA.!kWh
411
11,1 h yv r7
Shandi Wicks, CMC, City Clerk
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EXHIBIT A
309-311 North 10th Street
LEAD WARNING STATEMENT
Every purchaser of any interest in residential real property on which a residential dwelling was built
before 1978, must be notified regarding the presence of lead-based paint that may place young
children at risk of developing lead poisoning. Lead poisoning in young children may produce
permanent neurological damage, including learning disabilities, reduced intelligence quotient,
behavioral problems, and impaired memory. Lead poisoning also poses a particular risk to pregnant
women. The seller of any interest in residential real property is required to provide the buyer with
any information on lead-based paint hazards from risk assessments or inspections in the seller's
possession, and notify the buyer of any known lead-based paint hazards. A risk assessment or
inspection for possible lead-based paint hazards is recommended prior to purchase.
Seller's Disclosures:
1. The real property being purchased by Buycr was built prior to 1978.
If built after 1978, stop here.
2. Answer one of the following:
(a) Known lead-based paint and/or paint hazards are present on the real
property being purchased by Buyer as follows:
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X (b) Seller has no knowledge of lead-based paint and/or t(ad-based paint hazards
on the property being purchased by Buyer. ' '
3. Answer one of the following: •••• % `F; 4-s•
(a) Seller'has provided Buyer with the following available records and reports
pertaining to lead-based paint and/or lead-based hazards on the property being
purchased by Buyer,which represent all such reports in Seller's possession:
)( (b) Seller has no reports or records pertaining to lead-based paint and/or lead-
based paint hazards on the property being purchased by Buyer.
4. Buyer is hereby advised to contact a local real estate agency to obtain the pamphlet
entitled Protect Your Family from Lead in Your Home.
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Buyer's Acknowledgments:
(a) Buyer has received copies of all information listed above.
(b) Buyer has been advised by Seller to contact a local real estate agency to
obtain a copy of the pamphlet entitled Protect Your Family From Lead in Your
Home and Buyer has obtained that pamphlet.
)( (c) Buyer has(check one below):
(i) Received a 10-day opportunity(or mutually agreed upon period) to
conduct a risk assessment or inspection of the presence of lead-based paint
or lead based paint hazard; or
A (ii). Waived the opportunity to conduct a risk assessment or inspection
for the presence of lead-based paint and/or lead-based paint hazards.
Certification of Accuracy: .
The following parties have reviewed the information above and certify, to the best of their
knowledge, that the information they have provided is true and accurate.
"Seller" "Buyer"
REALTEK,L.L.C. CITY OF SALINA, KANSAS
By: . e_a_r•.: .0 ,t CIO .a le �� ` ._,
i /�f�; TM ber Kay. J. S wf, s Mayor
,- \ .
y► I , j 114A-'1 By: l�V .! t I J Y/�
7 Shandi Wicks, CMC, City Clerk
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RECEIPT BY ESCROW AGENT
The undersigned hereby acknowledges receipt of the executed original of this Contract, and
agrees to act as Escrow Agent and Real Estate Reporting Person as defined under Internal Revenue
Code Section 6045(e). Seller shall execute and deliver a general warranty deed upon execution of
this Contract to the Escrow Agent. Said deed shall be delivered to Buyer by the Escrow Agent upon
the closing of this Contract, pursuant to its terms. This receipt is executed this \— thy of
-Nevember, 2017.
Mid-Kansas Title Co. Inc. II
BY: a,14/i.x /�/Ossa/
Or[e GYaCcAl t)etn esAn CA
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