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HomeMy WebLinkAboutPurchase and Sale Agreement-Sangston REAL ESTATE PURCHASE AND SALE AGREEMENT CITY OF AUBURN This Agreement is made and entered into by and between the purchaser, CITY OF AUBURN (the "City"), and ALLEN SANGSTON (the "Seller"), a single man. WITNESSETH: Whereas, the City and the Seller are desirous of entering into an agreement whereby the City will purchase property owned by the Seller. NOW, THEREFORE, in consideration of the following terms, conditions and covenants and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, IT IS AGREED by the parties as follows: 1. SALE OF PROPERTY. The Seller shall sell, convey and transfer to the City, and the City shall purchase, acquire and take from the Seller, the real property generally located at 612 9th Street SE in the City of Auburn, King County, Washington, legally described as: LOT 6, BLOCK 3, WALNUT LAWN SECOND ADDITION TO AUBURN, ACCORDING TO THE PLAT THEREOF, RECORDED IN VOLUME 25 OF PLATS, PAGE 30, RECORDS OF KING COUNTY, WASHINGTON SITUATE IN THE CITY OF AUBURN, COUNTY OF KING, STATE OF WASHINGTON. Tax Parcel No. 915060-0030-00. and all herediments, appurtenances, improvements, and buildings belonging or in any way appertaining to the "Property". 2. EARNEST MONEY DEPOSIT. The City agrees to pay herewith ONE THOUSAND US Dollars ($1,000.00) as earnest money, in the form of a City of Auburn promissory note to be deposited with the closing agent as payment on the purchase price, payable to the Seller upon closing. 3. PURCHASE PRICE. The purchase price for the Property is 7W0 HUNDRED THOUSAND US Dollars ($204,000.00), which amount includes the Earnest Money Deposit amount. The parties acknowledge that the purchase price represents the fair market value of the Property. The agreed upon amount is payable by City warrant at closing. 1 4. CONDITION OF PROPERTY. Unless othenvise described in this paragraph the City offers to purchase the Property in an "as is" condition, with all physical defects, except those identified in paragraph 13, herein, including those that cannot be observed by casual inspection. Physical defects known to the Seller at the time of closing which are not observable by casual inspection shall be disclosed to the City. OTHER CONDITIONS OF PURCHASE: 5. REPRESENTATIONS OF SELLER. The Seller hereby represents to the City the following: _ (A) To the best of the Seller's knowledge there are no pending special assessments or condemnation actions with respect to the Property or any part thereof, and the Seller has no knowledge of any special assessment or condemnation actions being contemplated, and; (B) There is no pending litigation or suit threatened or asserted which could result in a lis pendens being lawfully filed against the Property, and; (C) The Seller will cooperate with the City and execute all documents necessary to remove or release liens, assessments, encumbrances, mortgages or deeds of trust in order to deliver to the City marketable title to the Property; (D) The Seiler has good and marketable title and fee simple to the Property, which is not subject to any liens, encumbrances, restrictions, or easements of any kind except those which have been disclosed on the Commitment for Title Insurance received by the City; and (E) Neither the execution of this agreement, nor the performance of any of the terms or provisions hereof, violates, or shall violate, or conflicts with in any material aspect or constitutes a default under, any existing contract document understanding, agreement or instrument to which the Seller is a party, or by which the Seller may be ' bound. 6. CLOSING. The closing date shall be / i- unless the Parties agree to another time. The place of closing shall be at . The Seller shall be responsible and entitled to have all closing documents reviewed by its own counsel or agent prior to closing. The risk of loss to the improvements, if any, on the Property prior to closing shall be Seller's and in the event of damage or destruction, the City shall be entitled to terminate this agreement. The City may postpone closing or terminate this agreement if it reasonably appears to the City that the Seller has misrepresented the condition of title, marketability of the Property or any other matter contained in Paragraph 4, above. 2 7. SELLER'S CLOSING DOCUMENTS. At the closing, the Seller shall produce and execute: (A) a Warranty Deed (The "Deed"), duly executed and acknowledged in a recordable form, conveying to the City marketable title to the Property free and clear of all liens, assessments, deeds of trust, mortgages, or encumbrances except those expressly agreed to by the City; (B) a detailed statement, prepared by the escrow officer and/or the closing attorney, setting forth the appropriate adjustments and prorations to be made at the closing; (C) a completed Seller's Disclosure Statement; and (D) all other documentation reasonably required by the City. 8. EXPENSES. A. Expenses of Seller. The Seller shall pay: (i) real estate taxes prorated to the date of closing; (ii) all assessments, liens, mortgages, deeds of trust or other encumbrances (ie. real estate excise tax); (iii) the Seller's attorney fees; and (iv) all other expenses incurred by Seller which relate to the Property; (v) title insurance premiums. B. Expenses of City. The City shall pay: (i) all recording fees; (ii) its attorney fees; (iii) real estate taxes due after the closing date, if any. 9. POSSESSION. The Seller shall deliver possession of the Property to the City on the date of closing. 10. TIME. Time is of the essence of this Agreement. 11. TITLE EXAMINATION. This Agreement is subject to and conditioned on the Seller providing to the City clear title to the real property, to the City's satisfaction, as shown on a Policy of Title Insurance covering the purchase of the Property in the amount of the cash purchase price, provided and paid for by the Seller. In the event that Seller is unable to cure any title encumbrances which are unacceptable to the City, the City may at its option: (1) terminate this agreement by written notice, whereupon no party shall have any further liability under this agreement; or (2) postpone the date of closing for up to sixty (60) days, during which time Seller shall use all reasonable efforts and expend reasonable sums as may be necessary to cure the objections of the City. If the objections to title are not cured on or before the closing date, as postponed, the City may terminate this agreement or waive the objections to title. 3 12. COMMISSION. The Seller warrants and represents to the City that if any real estate brokerage commission or fees are payable, the Seller hereby indemnifies the City from and against any and all claims for any real estate brokerage commission fees which may arise as a result of any acts of the Seiler. The Seller will pay any real estate fees at closing, unless agreed othenvise. 13. HAZARDOUS WASTE. To the best of the Seller's knowledge the Property is not in violation of any federal, state or local law, ordinance, or regulation relating to the environmental conditions on, under, or about the Property, including but not limited to, soil and ground water conditions, and that during the time in which the Seiler owned the Property, neither the Seller nor, to the best of the Seller's knowledge, any third party has used, generated, stored, or disposed of, on, under, or about the Property or transported to or from the Property any hazardous waste, toxic substances, or related materials (the "Hazardous Materials"). For the purposes of this paragraph, Hazardous Materials shall include, but is not limited to, substances defined as "Hazardous Substances," "Hazardous Materials," "Hazardous Waste," "Toxic Substances," in the Comprehensive Environmental Response Compensation and Liability Act of 1980, as amended, and RCW Title 7 and the regulations promulgated pursuant to such laws. The Seller will indemnify and hold harmless the City from all required remediation, damage, claim or loss (including attorney fees incurred in defending any claim) arising from the placement, storage, disposal or release on the Property of any Hazardous Materials during such time as the Seller was in possession or had any interest in the Property. This indemnification and hold harmless shall survive and not be merged into the deed delivered by the Seller to the City for the Property. If prior to the closing date the City discovers that the Property contains any Hazardous Waste, of which it has not been previously advised, the City may terminate this Agreement. 14. CONDEMNATION. The City and the Seller acknowledge that the Property being sold/purchased hereunder ❑ is, ❑ is not, being purchased under the threat of condemnation pursuant to RCW Title 8. 15. NOTICES. Any notices required or permitted to be given shall be in writing and delivered either in person or by certified mail, return receipt requested, postage pre- paid, addressed as follows or such other address as may be designated by either party: City: City of Auburn Department of Administration 25 W. Main St. Auburn WA 98001 Copy to: Office of the City Clerk 25 W. Main St. Auburn WA 98001 4 Seller: Allen Sangston 11723 NE 142nd Street Kirkland, WA 98034 Any notice given pursuant to this Agreement shall be deemed effective the day it is personally delivered or three (3) business days after the date it is deposited in the United States mails. 16. ENTIRE AGREEMENT/MODIFICATION. This written Agreement constitutes the entire and complete Agreement between the Parties hereto and supersedes any prior oral or written agreements between the Parties with respect to the Property. It is expressly agreed that there are no verbal understandings or agreements, which in any way change the terms, covenants, and conditions herein set forth. No modifications of this Agreement and waiver of any of its terms and conditions shall be effective unless in writing and duly executed by the Parties hereto. 17. BINDING EFFECT. All covenants, agreements, warranties and provisions of this Agreement shall be binding upon and inure to the benefit of the Parties hereto and their respective heirs, executors, administrators, personal representatives, successors and assigns. 18. CITY APPROVAL. The Seller acknowledges that this Agreement does not bind the City of Auburn until the Mayor executes the Agreement. 19. SELLER DISCLOSURE STATEMENT. The Seller shall, within five (5) days of accepting this Agreement, deliver to the City a completed, signed and dated Real Property Transfer Disclosure Statement substantially in the form set forth in RCW 64.06.020. The City shall within three business days, or as otherwise agreed to, after receipt of the Real Property Transfer Disclosure Statement have the right to (1) approve and accept the Real Property Disclosure Statement; or (2) rescind this Agreement pursuant to the Citys sole discretion. If the City elects to rescind the Agreement, the City will deliver written notice of rescission to the Seller within the above three (3) business day period, or as otherwise agreed. Upon delivery of a rescission statement, the City shall be entitled to immediate return of all deposits and other consideration paid to Seller. If City does not deliver a written rescission notice, the Real Property Transfer Disclosure Statement will be deemed approved. 20. DEFAULT AND ATTORNEY'S FEES. In the event that either party fails, without legal excuse, to perform any obligation under this Agreement, then the other party may, at its option, bring suit against the party failing to perform for the other party's actual damages, or pursue any other rights or remedies available at law or in equity. If either party institutes suit concerning this Agreement, the prevailing party is entitled to its court costs and reasonable attorneys fees. In the event of trial, the court shall fix the amount of the attorney's fees. Venue of any suit shall be in the county in 5 which the property is located, and this Agreement is to be governed by the laws of the state where the property is located. 21. LEGAL RIGHTS. EACH OF. THE PARTIES SHALL SUBMIT THIS AGREEMENT TO THEIR ATTORNEYS AND TAX SPECIALISTS FOR THEIR REVIEW AND APPROVAL PRIOR TO SIGNING THIS AGREEMENT. NO REPRESENTATIONS OR WARRANTIES ARE MADE BY ONE PARTY TO THE OTHER PARTY AS TO THE LEGAL SUFFICIENCY, LEGAL EFFECT OR TAX CONSEQUENCES OF THIS AGREEMENT, THE TRANSACTION DESCRIBED HEREIN, OR ANY ATTACHMENTS TO THIS AGREEMENT. 22. TIME LIMIT FOR ACCEPTANCE. The City offers to buy the property on the above terms and conditions. The Seller has until midnight of , 200 to accept this offer (if not filled in, the day following the City's signature date below.) Acceptance is not effective until a signed copy hereof along with any earnest money is actually received by the office of Closing Agent. If this offer is not so accepted, it shall lapse. 22. SIGNATURES: CITY OF AUBURN (Purchaser): SELLER: PETER B. LEWIS, MAYOR ALLEN SANGSTON CITY OF AUBURN 11723 NE 142"d ST. 25 W. MAIN ST. KIRKLAND, WA 98034 AUBURN, WA 98001 Phone: q~- FCerG - Fr 3ttq 253-931-3041 (phone) FAX: y zr - 8 q~- fr a s fr 53-288-3fi32 (fax)1 ~ - ama~n a ~ (sig ature) (signature) ~ 0~'~~ ~c~ B' o o O~ (date) (date) ATTEST CIT LERK 6 STATE OF WASHINGTON ) ) ss COUNTY OF ) On this day of 200c6~_, before me, the undersigned, a Notary Public in and for the State of Washington, duly commissioned and sworn, personally appeared Peter B. Lewis and Danielle Daskam, to me known as the Mayor and City Clerk, for the City of Auburn, the municipal corporation who executed the within and foregoing instrument, and acknowledged the said instrument to be the free and voluntary act and deed of said City of Auburn, for the uses and purposes therein mentioned, and on oath stated that they are authorized to execute said instrument on behalf of said municipal corporation. IN WITNESS ~(HEREOF, I have hereunto set my hand and affixed my ~ official seal orl~yh(A.Mreinabove set forth. • _ `~CO•`SIOR~~I'~~~is . GTA . ~ ~i ~.th.r .u-✓ NOTARY PU IC in and fo k,he,State of eL~c Washington, residing at e_~2 ;~dp ` MY COMMISSION EXPIRES: ^ a z~~i z- OP 1WASN\NG ~ STATE OF WASH~1'N1UTO1V ) ) ss COUNTY OF i On this 30 ~ day of er , 200Z, before me, the undersigned, a Notary Public in and for the State of Washington, duly commissioned and sworn, personally appeared Allen Sangston, a single man, to me known as the who executed the within and foregoing instrument, and acknowledged the said instrument to be his free and voluntary act and deed for the uses and purposes therein mentioned. IN WITNESS WHEREOF, I have hereunto set my hand and affixed my official seal on the date hereinabove set forth. ,r4i4&' ? , ~~~~-f'~/1`~ ~ e NOTARY PUBLIC ' and for the Sta e of ~v r. _ U°Washington, residing at ` y o qR~ MY COMMISSION EXPIRE 10 -Z9. r 7 ~ ~~~~~'~~ni„~~.a•~•~ ADDENDUM TO REAL ESTATE PURCHASE AND SALE AGREEMENT This Second Addendum to Real Estate Purchase and Sale Agreement ("Addendum") is entered into this 30th day of December, 2008 between the City of Auburn ("City") and ALLEN SANGSTON ("Seller"). Recitals: 1. The Parties entered into a Real Estate Purchase and Sale Agreement ("AgreemenY') on October 30, 2008 under which the City agreed to purchase a certain parcel of land from Seller. 2. The Parties wish to extend the closing date of the Agreement. AQreement: In consideration of the rriutual promises;contained herein, the Parties agree to amend the Agreement as follows: 1. Section 6 of the Agreement is amended to change the Closing Date from December 1, 2008 to January 15, 2009. --end of page-- 1 2. All other terms and conditions of the Agreement remain in full force and effect. This Addendum may be signed in duplicate original effective as of the date first above written. AUBURN ALLENSANGSTON 11723 NE 142"d ST Kirkland, WA 98034 Peter B. ewis, Mayor Allen Sangston , Attest: G~'~ , Dani le Daskam, City Clerk Appro d as to form: Daniel B. eid, Auburn City Attorney ) c~T~ 44° J 2