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HomeMy WebLinkAboutItem V.EWASH INGTON AGENDA BILL APPROVAL FORM Agenda Subiect Property Purchase Department: Planning Attachments: purchase agreements IDate: 4/30/2003 Budget Impact: $265,000 Administrative Recommendation: City Council to authorize the Mayor to expend public funds to purchase the properties at 120 and 124 "A" Street NW. Back,qround Summary: The City Council previously authorized the Mayor to pursue the purchase of the three properties at 120, 124 and 128 "A" Street NW. The owners of the houses at 120 and 124 have accepted the City's offer to purchase. The City had each of the properties appraised. The house at 120 "A" Street appraised at $125,000 and the agreed to purchase price is $131,250. The house at 124 "A" Street appraised at $128, 000 and the agreed to purchase price is $134,000. The City is still negotiating with the owner of the house at 128 "A" Street NW. The purchase of the properties will be for a public purpose - most likely parking. MUNI SERVICES\PROPERTY PURCHASE L0505-2 A3.13.4 Reviewed by Council & Committees: [] Arts Comnission COUNCIL CC~MITTEES: [] Airport [] Finance [] Hearing Examiner [] Municipal Serv. [] Human Services [] Planning & CD [] Park Board []Public Works [] Planning Co~n. [] Other P~ewed by De~ts & Divisions: [] Building [] M&O [] Cemetery [] Mayor [] Finance [] Parks [] Fire [] Planning [] Legal [] Police [] Public Works [] Human Resources Action: Cor~aittee Approval: DYes DNo Council Approval: DYes Referred to Tabled Councilmember: Singer Meeting Date: May 5, 2003 Until Until Call for Public Hearing / / / / / / Staff: Krauss Item Number: V.E AUBUP, N * MORE THAN YOU iMAGINED EARNEST MONEY RECEIPT AND SALES AGREEMENT THIS CONTRACT CONTROLS THE TERMS OF THE SALE OF TILE, PROPERTY (Please read carefully before signing) Auburn, Washington, February 24, 2003 RECEIVED from the City of Auburn, hereinafter called the Buyer, the sum of One Hundred Thirty-One Thousand, Two Hundred Fifty Dollars, ($131,250.00) in the form of: a Promissory Note for said $131,250.00 due upon closing, deposited as earnest money and as part payment on the purchase price of the following described real estate. (Agent shall deposit the earnest money note only after Buyer and Seller have signed this agreement) which Buyer agrees to buy and the Seller agrees to sell, located in King County, State of Washington, generally located at 120 A Street SE, in Auburn, Washington, 98002and legally described as follows: LOT 15, BLOCK 5, BALLARD'S LW PARK TO SLAUGHTER, TOGETHER WITH THE VACATED 10 FT STRIP OF RIGHT-OF-WAY ADJACENT THERETO, IN AUBURN, KING COUNTY, WASHINGTON 1. PURCHASE PRICE: The total price is One Hundred Thirty-One Thousand, Two Hundred Fifty Dollars, ($131,250.00), Payable upon closing. CONTINGENCIES: This agreement is contingent on Title (per the title insurance report) acceptable to the Buyer, on the contingencies set forth herein below, and on Approval of the sale by the Auburn City Council. TITLE: Unless otherwise noted on this agreement, title of Seller is to be free of encumbrances or defects. Existing reservations, existing easements not inconsistent with Buyer?s intended use, building or use restrictions general to the district, and building or zoning regulations or provisions shall not be deemed encumbrances or defects. Encumbrances to be discharged by Seller shall be paid out of purchase money at date of closing. PROPERTY INFORMATION/ASSURANCES: A. Buyer is buying the property: [] As is; [] Subject to the following Information and Assurances: Seller shall advise the Buyer of the existence and/or status of the following: (1) any public/community water main [] well [] public sewer [] septic tank [] cesspool [] none of the foregoing. (2) [] Whether there is a Condominium of Home Owner's fee. (3) Whether the property contains leased or encumbered items identified as [] hot water tank(s) [] heating system [] other (4) That all electrical wiring, heating, cooling, and plumbing systems will be in working order at the time Buyer is entitled to possession, (5) That Seller knows of no material structural defects. (6) That Buyer will maintain the property and yard in present or better condition until agreed possession. (7) Shares in light and/or water companies and association, if any, shall be included in the sale, unless noted. (8) That he has no notice from any governmental agency of any violation of laws relating to the subject property except CLOSING COSTS AND PRO-RATIONS: The cost of escrow shall be paid by the Buyer. The Buyer shall pay for excise tax and revenue stamps. Taxes for the current year, rents, interest, Association, Condominium and/or Home Owner's fees, water and other utility charges, if any shall be prO-rated as of date of closing. COST-CLOSING ADJUSTMENTS, COLLECTIONS AND PAYMENTS: After closing, Buyer and Seller shall reconcile the actual amount of revenues or liabilities upon receipt of payments thereof to the extent those items were prorated or credited at closing based upon estimates. Any bills or invoices received by Buyer after closing which relate to services rendered or goods delivered to the Seller or the property prior to closing shall be paid by Seller upon representation of such bill or invoice. At Buyer's option, Buyer may pay such bill or invoice and be reimbursed the~aid plus interest at the rate of 12 percent per annum beginning fifteen (15) days Page 1 of 4 DATE ~-~9 ~ DATE DATE q--/--/~.~ DATE ~' ~' 3 '~ ~ from the date of Buyer's written demand to Seller for reimbursement until such reimbursed is made. Rents collected from each tenant after closing shall be applied first to rentals due most recently from such tenant for the period after closing, and the balance shall be applied for the benefit of Seller for delinquent rentals owed for a period prior to closing. The amounts applied for the benefit of Seller shall be turned over by buyer to Seller promptly after receipt. 7. CLOSING OF THE SALE: WITH THE UNDERSTANDING THAT TIME IS OF THE ESSENCE OF THIS AGREEMENT: this sale shall be closed on OR BEFORE June 1, 2003, which shall also be the termination date  of t~_ agreement. Buyer and Seller will IMMEDIATELY UPON DEMAND, deposit in escrow with ~~ O 7~.~_. all instruments and monies required to complete the purchase in ?~_-~..ccordance with this agreement. Closing for the purpose of this agreement is defined as the date that all .q ~cuments are executed and the sale proceeds are a~to~~ 8. PosSEsSION: Buyer shall be entitled tO posses~on ~/l~]"closing, or [] . Seller agrees to pay the Buyer the sum of $ ( ~/for each day of po-~sses-~~n~ ~h-~ ~ta--~e ;f: ~---~-~e~e~ possession. (Said payment shall be the sole respons~lity of the Seller, due on demand.) ADDITIONAL PROVISIONS: In addition to INCLUDED ITEMS, CONVEYANCE, TITLE INSURANCE, AND GENERAL PROVISIONS, printed on the reverse side of this agreement, the following checked items are also included: [] INSPECTIONS [] OTHER At closing, the Seller shall deliver to the Buyer the premises in a clean, unoccupied condition. 10. AGREEMENT TO PURCHASE:. Buyer hereby acknowledges receipt of a copy of this agreement. Buyer offers to purchase the above property on the above terms and conditions. Notice of acceptance given to Agent by Seller shall be considered as given to Buyer. . - t/~ shall have until midnight of //~~5 . ,200,~ to accept 11. TIME FOR ACCEPTANCE: Seller this offer by delivering a signed copy hereof to the City (City Clerk's Office). 12. COUNTEROFFERS: In the event that by change hereon or attached hereto, the Seller shall make a counter offer, the Buyer shall have two days within which to accept the same. Said counter offer shall be personally delivered or sent by certified mail to Buyer" address on the front of this agreement. The above number of days shall commence on the day after its delivery or, if mailed, then on the third day following its deposit into the mail. In either case, said two days shall expire at midnight of the last day unless that day is a Saturday, Sunday or legal holiday, in which event it shall expire at midnight of the next business day. 13. CONVEYANCE: Title shall be conveyed by Warranty Deed free of encumbrances, except as approved by the City. 14. TITLE INSURANCE: Seller authorizes, at Seller's sole expense, the City or other agent to immediately apply for a preliminary commitment for a standard form Buyer's policy of title insurance to be issued by such title insurance company as the Buyer may designate. Said preliminary commitment, and the title policy to be issued, shall contain no exceptions other than those provided for in such standard form and encumbrances or defects noted in paragraph 3 hereof. If title cannot be made so insurable prior to the closing date called herein, the earnest money shall, unless Buyer elects to waive such defects or encumbrances, be returned to the Buyer, less any costs incurred or advances by Agent for Buyer, and this agreement shall hereupon be terminated. 15. GENERAL PROVISIONS: Seller and Buyer warrant that no representations have been made concerning the~ condition of the ;/~rlx~,oundary lines or size. TIME IS OF THE ESSENCE OF THIS AGREEMENT. Page 2 of 4 DATE DATE- q'" 1'"'~) 3 DATE q" ~ 5' ~ ~ There have been no verbal or other agreements which modify or affect this agreement. THIS .AGREEMENT CONSTITUTES THE FULL UNDERSTANDING BETWEEN THE SELLER, BUYER AND AGENT. 16. HAZARDOUS SUBSTANCES: Seller represents and warrants to buyers that to the best of its knowledge: (i) 'there are no Hazardous Substances (as defined below) currently located in, on or under the property in a manner or quality that presently violates any Environmental Law (as defined below); (ii) there are no underground storage tanks located on the property; and (iii) there is no pending or threatened investigation or remedial action by any governmental agency regarding the release of Hazardous Substances or the violation of Environmental Law at the property. As used herein, the term "Hazardous Substances" shall mean any substance or material now or hereafter defined or regulated as a hazardous substance, hazardous-waste, toxic substance, pollutant, or contaminant under any federal, state or local law, regulation, or ordinance goveming any substance that could cause actual or suspected harm to human health or the environment (Environmental Law). The term "Hazardous Substance" specifically includes but is not limited to, petroleum, petroleum by-products, and asbestos. Seller agrees to indemnify, defend and hold Buyer harmless from and against any and all claims, liabilities, losses, penalties, remediation costs and expenses (including attomey's and consultant's fees and costs) that Buyer may incur or have assessed against it as a result of the presence of any Hazardous Substance in, on, or under the Property which violates any Environmental Law at any time prior to closing. The provisions of this Section shall survive closing. 17. CONDITION OF SEPTIC TANK: 18. INSPECTIONS - MAY BE REQUIRED. Seller understands that the Buyer MAY REQUIRE THAT THE PROPERTY COMPLY WITH APPLICABLE BUILDING CODES and other governmental requirements of the city or county in which it is located, and require other inspections including, but not limited to, termite, heating, plumbing, roof, electrical, septic tank and well water. 19. CONDEMNATION AND CASUALTY: Buyer may terminate this agreement and obtain the refund of the earnest money, less any costs advanced or committed for Buyer, if improvements on the property are destroyed or materially changed by casualty before closing, or if condemnation proceedings commenced against all or a portion of the property before closing. 20. COSTS OF INSPECTION: 22. ASSIGNMENT: Buyer [] may [] may not (may not assign, if not completed) assign this Agreement, or Buyer's rights hereunder without Seller's prior whtten Consent,. unless provided otherwise. 23. NOTICE AND COMPETITION TIME: Unless otherwise specified, any notice requirement to required or permitted in, or related to, this agreement must be in writing and signed by any one Buyer or Seller, including either husband or wife. Seller appoints Listing Agent as Seller's Agent, and Buyer appoints Seller's Licensee as Buyer's agent to receive notices and other documents related to this transaction that may be delivered from one party to another, including but not limited to Seller's Real Property Transfer Disclosure Statement (RCW 46.06), and any additional written notices, responses or communications relating to such documents. The party to whom such notice or any other document is directed shall be deemed to have received and to have notice of the contents of the notice/oy=eJo,q, ument upon receipt by or at the office of the party's appointed agent. Any time Page3 of 4 DATE---~""/'~0 3 DATE DATE 4 '~l 'i03 DATE ~/" ~ ~- ~ ~ 24. limit applicable to a notice shall commence on the day following receipt of the notice by the appointed agent or party, and shall expire at 5:00 p.m. on the last calendar day of the specified period of time, unless the day is a Saturday, Sunday, or a legal holiday is defined in RCW 1.16.050, in which event the time shall expire on the end of the next business day. Any specified period of five (5) days or less shall include business days only. SELLER AND BUYER MUST KEEP THEIR APPOINTED AGENT ADVISED OF THEIR WHEREABOUTS TO RECEIVE PROMPT NOTIFICATION OF RECEIPT OF A NOTICE. SELLING LICENSEE AND LISTING AGENT HAVE NO RESPONSIBILITY TO ADVISE OF RECEYPT OF A NOTICE BEYOND EITHER PHONING THE PARTY OR CAUSING A COPY OF THE NOTICE TO BE DELIVERED TO THE PARTY'S ADDRESS OF THIS AGREEMENT. DEFAULT AND ATTORNEY'S FEES: In the event Buyer fails, without, legal excuse, to complete the purchase of the property, then Seller may, at its option, bring suit against Buyer for Sellers actual damages, or pursue any other rights or remedies available at law or in equity. In the event Seller fails, without legal excuse, to complete the sale of the property, then Buyer may, at its option, bring suit against the Sellers, for specific performance of the property sale transaction, and for its actual damages, or for any other fights or remedies available at law or in equity. If Buyer or Seller institutes suit concerning this Agreement, the prevailing party is entitled to court costs and reasonable attorney's fees. In the event of trial, the amount of the attorney's fees shall be f~xed by the court. Venue of any suit shall be in the county ih which the property is located, and this Agreement is to be governed by the laws of the state where the property is located. Buyer _~ ~~~:~~--- Date Home Phone Buyer Date Office Phone Print Buyer's name(s) Peter B. ~ Lewis, l~ayor Buyer's address 25 W l~in Seller's Licensee (Company) Office phone St, Auburn, NA, 98001 FAX Fax Address By Seller ~~ Date Seller ~ ~. ~~ Date Print Seller:s name(s) Seller's address ~/ ~ (~.~-- Print name H o me P ho n e/~4~., ~::~,J "~d 03 Office Phone '~ ~ 25. BUYER'S RECEIPT: Buyer acknowledges receipt of a Seller's signed copy of this Agreement on INITIALS: BUYER Page 4 of 4 DATE _ Buyer BUYER DATE Buyer $131,250.00 Auburn, Washington PROMISSORY NOTE Date: February 24, 2003 FOR VALUE RECEIVED, the undersigned, on behalf of the CITY of AUBURN, promises to pay to the order of Albert Rossi and Shafimae Rossi, husband and wife, the amount of One Hundred Thirty- One Thousand, Two Hundred Fifty Dollars, ($131,250.00), without interest, payable upon closing of the real property sale transaction, in accordance with and subject to the terms and conditions of the Earnest Money Receipt and Sales Agreement between the Promisor, as Buyer, and Payee, as Seller, for the real estate located in King County, State of Washington, generally located at 120 A Street NW, in Auburn, Washington, 98002, and legally d~scribed as follows: LOT 15, BLOCK 5, BALLARD'S LW PARK TO SLAUGHTER, TOGETHER WITH THE VACATED 10 FT STRIP OF RIGHT-OF-WAY ADJACENT THERETO, IN AUBURN, KING COUNTY, WASHINGTON If any of said installments is not paid, the total amount becomes immediately due and collectible at the option of the holder of this note. If this note is placed in the hands of an attomey for collection, if the undersigned is not the prevailing party, the undersigned promises and agrees to pay the reasonable attorney's fees and collection costs of the holder of the note, and if suit or action is filed.on this note, the undersigned also promises to pay the holders' reasonable attorney's fees to be fixed by the trial court and if any appeal is take from the decision of the trial court, such further sum as may be fixed by the appellate court as the holder's reasonable attorney's fees and costs in the appellate court. The principal of the note and any interest may be paid at anytime after it becomes due and pay~r.e~ PRO~iS~i~'xc/'''~ ' Date: ~/~) 22) EARNEST MONEY RECEIPT AND SALES AGREEMENT THIS CONTRACT CONTROLS THE TERMS OF TIlE SALE OF THE PROPERTY (Please read carefully before signing) Auburn, Washington, February 24, 2003 RECEWED from the City o.f Auburn, hereinafter called the BUyer, the sum of One Hundred Thirty-Four Thousand Dollars, ($134,000.00) in the form of: a Promissory Note for said $134,000.00 due upon closing, deposited as earnest money and as part payment on the purchase price of the following described real estate. (Agent shall deposit the earnest money note only after Buyer and Sellers have signed this agreement) which Buyer agrees to buy and the Sellers agree to sell, located in King County, State of Washington, generally located at 124 A Street NW, in Auburn, Washington, 98002and legally described as follows: LOT 16, AND THE SOUTH 12V2 FEET OF LOT 17, BLOCK 5, BALLARD'S LW PARK TO SLAUGHTER, TOGETHER WITH THE VACATED 10 FT STRIP OF RIGHT-OF-WAY ADJACENT THERETO, IN AUBURN, KING COUNTY, WASHINGTON PURCHASE PRICE: The total price is One Hundred Thirty-Four Thousand Dollars, ($134,000.00), Payable upon closing. CONTINGENCIES: This agreement is contingent on Title (per the title insurance report) acceptable to the Buyer, on the contingencies set forth herein below, and on Approval of the sale by the Auburn City Council. TITLE: Unless otherwise noted on this agreement, title of Sellers is to be free of encumbrances or defects. Existing reservations, existing easements not inconsistent with Buyer's intended use, building or use restrictions general to the district, and building or zoning regulations or provisions shall not be deemed encumbrances or defects. Encumbrances to be discharged by Sellers shall be paid out of purchase money at date of closing. PROPERTy INFORMATION/ASSURANCES: Sellers shall advise the Buyer of the existence and/or status of the following: (1) any public/community water main [] well [] public sewer [] septic tank [] cesspool. [] none of the foregoing. (2) [] Whether there is a Condominium of Home Owner's fee. (3) Whether the property contains leased or encumbered items identified as [] hot water tank(s) [] heating system [] other nc~na (4) That all electrical wiring, heating, cooling, and plumbing systems will be in working order at the time Buyer is entitled to possession, (5) That Seller knows of no material structural defects. (6) That Buyer will maintain the property and yard in present or better condition until agreed possession. (7) Shares in light and/or water companies and association, if any, shall be included in the sale, unless noted. (8) That he has no notice fi.om any governmental agency of any violation of laws relating to the'subject property except none CLOSING COSTS AND PRO-RATIONS: The cost of escrow shall be paid by the Buyer. The Buyer shall pay for excise tax and revenue stamps. Taxes for the current year, rents, interest, Association, Condominium and/or Home Owner's fees, water and other utility charges, if any shall be pro-rated as of date of closing. COST-CLOSING ADJUSTMENTS, COLLECTIONS AND PAYMENTS: After closing, Buyer and Sellers shall reconcile the actual amount of revenues or liabilities upon receipt of payments thereof to the extent those items were prorated or credited at closing based upon estimates. Any bills or invoices received by Buyer after closing which relate to services rendered or goods delivered to the Sellers or the property prior to closing shall be paid by Sellers upon representation of such bill or invoice. At Buyer's option, Buyer may pay such bill or invoice and be reimbursed the amount paid plus interest at the rate of 12 percent per annum beg/nning fifteen (15) days from the d~qle-a~uyer's whtten demand toilers for reimbursement until such reimbursed is made. INITIA ";w'"'x~ '~ ~ ' LS:BUYER ~. SELLER -~//~SELLER &~[ SELLER ~-~//~ Page 1 of 4 DATE q'''~'t'-O~;} DATE b/t -[7'-OJ DATE 4-17-03 DATE [7/-/P-''''°''~ I0. 11. 12. 13. 14. Rents collected from each tenant after closing shall be applied first to rentals due most recently from such tenant for the period after closing, and the balance shall be applied for the benefit of Sellers for delinquent rentals owed for a period prior to closing. The amounts applied for the benefit of Sellers shall b~ltumed over by Buyer to Sellers promptly after receipt. 2X.& 1'1] ..... ~ -- --~ /<' o _ _ _ _.~ ~04~/~ 4-17~u3~lVlay 15, 2003/j['/..-~0/-~ c['~ll~-o.J CLOSING OF THE SALE: WITH THE Lr~ERSTANDING ~ IS O~tE ESSENCE OF THIS AGREEMENT: this sale shall be closed on OR BEFORE November-qz,-200~, which shall also be the termination date of this agreement. Buyer and Sellers will IMMEDIATELY UPON DEMAND, deposit in escrow with all instruments and monies required to complete the purchase in accordance with this agreement. Closing for the purpose of this agreement is defined as the date that all documents are executed and the sale proceeds are available to the Sellers. 15. POSSESSION: Buyer shall be entitled to possession on :[~ closing, or [] Sellers agree to pay the Buyer the sum of $ - 0- for each day of possession beyond the date of agreed possession. (Said payment shall be the sole responsibility of the Sellers, due on demand.) ADDITIONAL PROVISIONS: In addition to INCLUDED ITEMS, CONVEYANCE, TITLE INSURANCE, AND GENERAL PROVISIONS, printed on the reverse side of this agreement, the following checked items are also included: [] INSPECTIONS [] OTHER At closing, the Sellers shall deliver to the Buyer the premises in a clean, unoccupied condition. AGREEMENT TO PURCHASE: Buyer hereby acknowledges receipt of a copy of this agreement. Buyer offers to purchase the above property on the above terms and conditions. Notice of acceptance given to Agent by Sellers shall be considered as given to Buyer. TIME FOR ACCEPTANCE: SellerS shall have until midnight of lqay 24, this offer by delivering a signed copy hereof to the City (City Clerk's Office). ,2003 to accept COUNTEROFFERS: In the event that by change hereon or attached hereto, the Sellers shall make a counter offer, the Buyer shall have two days within which to accept the same. Said counter offer shall be personally delivered or sent by certified mail to Buyer" address on the front of this agreement. The above number of days shall commence on the day after its delivery or, if mailed, then on the third day following its deposit into the mail. In either case, said two days shall expire at midnight of the last day unless that day is a Saturday, Sunday or legal holiday, in which event it shall expire at midnight of the next business day. CONVEYANCE: Title shall be conveyed by Warranty Deed free 9f encumbrances, except as approved by the TITLE INSURANCe: Sellers authorize, at Setle~'-sole ex'se, the City or other agent to immediately apply for a preliminary commitment for a standard form Buyer's policy of title insurance to be issued by such title insurance company as the Buyer may designate. Said preliminary commitment, and the title policy to be issued, shall contain no exceptions other than those provided for in such standard form and 'encumbrances or defects noted in paragraph 3 hereof. If title cannot be made so insurable prior to the closing date called herein, the earnest money shall, unless Buyer elects to waive such defects or encumbrances, be returned to the Buyer, less any costs incurred or advances by Agent for Buyer, and this agreement shall hereupon be terminated. GENERAL PROVISIONS: Sellers and Buyer warrant that no representations have been made concerning the condition of the property, boundary lines or size. TIME IS OF THE ESSENCE OF THIS AGREEMENT. There have been no verbal or other agreements which modify or affect this agreement. THIS AGREEMENT CONSTITUTES THE FULL U1,)I;DERSTANDING BETWEEN THE SELLERS, BUYER ANI~GENT. ,~/ Page 2 of 4 DATE DATE t-/-['~_ cO.,~ DATE /'/~////-OZT DATE /7/://:?~&~3 16. 17. 18. 19. 20. 21. 22. 23. HAZARDOUS SUBSTANCES: Sellers represent and warrants to buyers that to the best of its knowledge: (i) there are no Hazardous Substances (as defined below) currently located in, on or under the property in a manner or quality that presently violates any Environmental Law (as defined below); (ii) there are no underground storage tanks located on the property; and (iii) there is no pending or threatened investigation or remedial action by any governmental agency regarding the release of Hazardous Substances or the violation of Environmental Law at the property. As used herein, the term "Hazardous Substances" shall mean any substance or material now or hereafter defined or regulated as a hazardous substance, hazardous-waste, toxic substance, pollutant, or contaminant under any federal, state or local law, regulation, or ordinance governing any substance that could cause actual or suspected harm to human health or the environment (Environmental Law). The term "Hazardous Substance" specifically includes but is not limited to, petroleum, petroleum by-products, and asbestos. Sellers agree to indemnify, defend and hold Buyer harmless from and against any and all claims, liabilities, losses, penalties, remediation costs and expenses (including attorney's and consultant's fees and costs) that Buyer may incur or have assessed against it as a result of the presence of any Hazardous Substance in, on, or under the property which violates any Environmental Law at any time prior to closing. The provisions of this Section shall survive closing. CONDITION OF SEPTIC TANK: Sellers warrant that the Septic tank, if any, serving the property is in good working order and Sellers have no knowledge of any needed repairs. INSPECTIONS - MAY BE REQUIRED. Sellers understand that the Buyer MAY REQUIRE THAT THE PROPERTY COMPLY WITH APPLICABLE BUILDING CODES and other governmental requirements of the city or county in which it is located, and require other inspections including, but not limited to, termite, heating, plumbing, roof, electrical, septic tank and well water. CONDEMNATION AND CASUALTY: Buyer may terminate this agreement and obtain the refund of the earnest money, less any costs advanced or committed for Buyer, if improvements on the property are destroyed or materially changed by casualty before closing, or if condemnation proceedings commenced against all or a portion of the property before closing. COSTS OF INSPECTION: ~;^"~ N/A OBLIGATION TO MAKE REPAIRS: Sellers understand that as a result of any governmental or utility inspections, Sellers may be required to make repairs to the property in order to comply with the applicable codes whether or not a sale is completed under this Agreement. ASSIGNMENT: Buyer [] may [] may not (may not assign, if not completed) assign this Agreement, or Buyer's rights hereunder without Sellers' prior written Consent, unless provided otherwise. NOTICE AND COMPETITION TIME: Unless otherwise specified, any notice requirement to required or permitted in, or related to, this agreement must be in writing and signed by any one Buyer or Seller, including either husband or wife. Sellers appoint Listing Agent as Sellers' Agent, and Buyer appoints Sellers' Licensee as Buyer's agent to receive notices and other documents related to this transaction that may be delivered from one party to another, including but not limited to Sellers' Real Property Transfer Disclosure Statement (RCW 46.06), and any additional written notices, responses or communications relating to such documents. The party to whom such notice or any other document is directed shall be deemed to have received and to have notice of the contents of the notice or document upon receipt by or at the office of the party's appointed agent. Any time limit applicable to a notice shall commence on the day following receipt of the notice by the appointed agent or party, and shall expire~-~0 p.m. on the last calendar day of the specified period of time, u. gl~5 the day is a ~~Jr INITIALS: BUYER SELLER ~/~ Page3of4 DATE ~"t'7''~'4~> DATE 'f [7-o3 DATE t'-/-/7-OJ DATE q''t''8'153 24. Saturday, Sunday, or a legal holiday is defined in RCW 1.16.050, in which event the time shall expire on the end of the next business day. Any specified period of five (5) days or less shall include business days only. SELLERS AND BUYER MUST KEEP THEIR APPOINTED AGENT ADVISED OF THEIR WHEREABOUTS TO RECEIVE PROMPT NOTIFICATION OF RECEIPT OF A NOTICE. SELLING LICENSEE AND LISTING AGENT HAVE NO RESPONSIBILITY TO ADVISE OF RECEIPT OF A NOTICE BEYOND EITHER PHONING THE PARTY OR CAUSING A COPY OF THE NOTICE TO BE DELIVERED TO THE PARTY'S ADDRESS OF THIS AGREEMENT. DEFAULT AND ATTORNEY'S FEES: In the event Buyer fails, without legal excuse, to complete the purchase of the property, then Sellers may, at their option, bring suit against Buyer for Sellers' actual damages, or pursue any other fights or remedies available at law or in equity. In the event Sellers fail, without legal excuse, to complete the sale of the property, then Buyer may, at its option, bring suit against the Sellers, for specific performance of the property sale transaction, and for its actual damages, or for any other rights or remedies available at law or in equity. If Buyer or Sellers institute suit concerning this Agreement, the prevailing party is entitled to court costs and reasonable attorney's fees. In the event of trial, the amount of the attorney's fees shall be £~xed by the court. V~y suit sl~ll be in the county in which the property is located, and this Agreement is to be governed b~t~~e property is located. ( ~9 ~ ~ Date ~/~t.J/~)~.~ Homeehone Buye% / Buyer ~C.Y [~, i,--6A. OiS l[l~f,c~Ov' Date OfficePhone(ZS-~)c~3~3OC~J Print Buyer's name(s) Buyer's address 2~ bd Sellers' Licensee (Company) Office phone none Fax Address By Seller ~/~//7~ ,c~~~_._ Date Seller ,_~x, 4, ~'-w~,~_~ Date Seller '~'~ ~-c),~ Date Pfintname 4-17-03 4-17-03 Home Phone (253) 862-9042 Home Phone (253) 839-9025 Print Sellers' name(s) Wayne Heisserman, Shirley J. Heisserman and Steven W. Bastrom Sellers' address: 25616 121st Street E., Buckley, WA 98321 FAX 25. BUYER'S RECEIPT: Buyer acknowledges receipt of a Sellers' signed copy of this Agreement INITIALS: BUYER Page 4 of 4 DATE (date). Buyer Buyer SELLER DATE on PROMISSORY NOTE $134,000.00 Aubum, Washington Date: February 24, 2003 FOR VALUE RECEIVED, the undersigned, on behalf of the CITY of AUBURN, promises to pay to the order of Wayne Heisserman and Shirley Heisserman, husband and wife, and Steven W. Bastrom, a single man, the amount of One Hundred Thirty-Four Thousand Dollars, ($134,000.00), without interest, payable upon closing of the real property sale transaction, in accordance with and subject to the terms and conditions of the Earnest Money Receipt and Sales Agreement between the Promisor, as Buyer, and Payee, as Seller, for the real estate located in King County, State of Washington, generally located at124 A Street NW, in Auburn, Washington, 98002, and legally described as follows: LOT 16, AND THE SOUTH 121/2 FEET OF LOT 17, BLocK 5, BALLARD'S LW PARK TO SLAUGHTER, TOGETHER WITH THE VACATED 10 FT STRIP OF RIGHT-OF-WAY ADJACENT THERETO, IN AUBURN, KING COUNTY, WASHINGTON If any of said installments is not paid, the total amount becomes immediately due and collectible at the option of the holder of this note. If this note is placed in the hands of an attomey for collection, if the undersigned is not the prevailing party, the undersigned promises and agrees to pay the reasonable attorney's fees and collection costs of the holder of the note, and if suit or action is filed on this note, the undersigned also promises to pay the holders' reasonable attomey's fees to be fixed by the trial court and if any appeal is take fi.om the decision of the trial court, such further sum as maybe fixed by the appellate court as the holder's reasonable attorney's fees and costs in the appellate court. The principal of the note and any interest may be paid at any time after it becomes due and payable without prepayment penalty. Date: /'/'- ~ ~'" 0 ~