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HomeMy WebLinkAbout14-133 Resolution No. 14-133 RESOLUTION AUTHORIZING EXECUTION OF A REAL ESTATE CONTRACT FOR THE PURCHASE OF 652 MCBRIDE STREET BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF ELGIN, ILLINOIS, that Sean R. Stegall, City Manager, be and is hereby authorized and directed to execute a real estate contract on behalf of the City of Elgin with the Robert O. Werrbach Trust for the purchase of the property commonly known as 652 McBride Street for $115,000, a copy of which is attached hereto and made a part hereof by reference. s/ David J. Kaptain David J. Kaptain, Mayor Presented: September 24, 2014 Adopted: September 24, 2014 Vote: Yeas: 9 Nays: 0 Attest: s/ Kimberly Dewis Kimberly Dewis, City Clerk ® MULTI-BOARD RESIDENTIAL REAL ESTATE CONTRACT 4.0 RIAL10R to"npa+u orroaunur 1 1.THE PARTIES:Buyer and Seller are hereinafter referred to as the"Parties". 2 3 Buyer(s)(Please Print) City of Elgin, an Illinois municipal corporation 4 5 Seller(s)(Please Print) Robert 0. Werrbach Trust , Owner of Record 6 7 If Dual Agency applies,complete Optional Paragraph 41, 8 9 2.THE REAL ESTATE: Real Estate shall be defined to include the Real Estate and all improvements thereon.Seller 10 agrees to convey to Buyer or to Buyer's designated grantee, the Real Estate with the approximate lot size or acreage 11 of 40' x 137' per commonly known as: 652 McBRIDE STREET ELGIN ILLINOIS 60120 12 survey Address City State Zip 13 Kane 06-11-401-013 14 County Unit#(if applicable) Permanent Index Number(s)of Real Estate 15 16 If Condo/Coop/I'ownhome Parking is Included:#of space(s)_;identified as Space(s)# 17 (check type) ❑deeded space; ❑limited common element;❑assigned space 18 19 3.FIXTURES AND PERSONAL PROPERTY: All of the fixtures and personal property stated herein are owned by 20 Seller and to Seller's knowledge are in operating condition on the Date of Acceptance,unless otherwise stated herein. 21 Seller agrees to transfer to Buyer all fixtures, all heating, electrical, plumbing and well systems together with the 22 following items of personal property by Bill of Sale at Closing:lCheck or enancate appYcable Item] 23 _Refrigerator $All Tacked Down Carpeting _Fuepl—Screen(syDoer(8YGMte(s) Central Air Conditioning 24 _OvcwRa%e/Stove g AA Window Treatments&Hardwase Fireplace Gas Logs 'Electronic or Media Air Filter 25 M rowave X Built-in or Attached Shelving Existing Storms&Scrams 'Central Humidifier 26 '"Dishwasher —smoke Docect«(:) Sao aih Syatem(s)(owned) _Sump Rmtpts) 27 _Garbage Disposal _Ceiling Fan(s) _intercom system _Water sotkner(owned) Trish Compactor —TV Antenna System Central Vac&Equipment 'Outdoor Shed 30 _Washer Wmdow AirConditioner(s) _Electronic Garage Door Opener(:) Aftwhed Gas GYM _Dryer g_,Plmted Vegetation with all Tramsnitter(s) �{Light Fixduea,u they exist 31 _Satellite Dish —Outdoor Plsysets _InvW11c Fence System.Cotisr(s)and Box _Home Warranty S 32 Other items included: 33 Items NOT included: 34 Seller warrants to Buyer that all 5xtu r-%systems and personal property included in this Contract shall be in operating 35 condition at possession,except: 36 A system or item shall be deemed to be in operating condition if it performs the function for which it is intended, 37 regardless of age,and does not constitute a threat to health or safety. 38 39 4.PURCHASE PRICE:Purchase Price of S 115,000 shall be paid as follows: 40 41 to he ismasa d to a seta of$ ley-- '^ "'� > 42 " „ 43 e9r The 19aimee-ef&*Purchase Price,as adjusted by proration,shall be paid at Closing by wire transfer of funds, 44 or by certified, cashier's, mortgage lender's or title company's check (provided that the title company's check is 45 guaranteed by a licensed title insurance company). 46 47 5. CLOSING: Closing or escrow payout shall be on November 26 201_g_, or at such time as 48 mutually agreed upon by the Parties in writing. Closing shall take place at the title company escrow office situated 49 geographically nearest the Real Estate or as shall be agreed mutually by the Parties. 50 51 6. POSSESSION. Unless otherwise provided in Paragraph 39,Seller shall deliver possession to Buyer at the time of 52 Closing.Possession shall be deemed to have been delivered when Seller has vacated the Real Estate and delivered keys 53 to the Real Estate to Buyer or to Listing Office. Buyer Initia 13rryer Initial Seller Initial_ Seller Initial Address 652 McBRIDE STREETS ELGIN ILLINOIS 6QI20 Pave. 1 54 7. RESIDIENEAL REAL ESTATE AND LEAD-BASED PAINT DISCLOSURES: if applicable,prior to signing 55 this Contract,Buyer[check one/0 haslqff has not received a completed Illinois Residential Real Property Disclosure 56 Report;[check oneJ❑ bas has not received the EPA Pamphlet,"Protect Your Family From Lead in Your Home"; 57 [check onejU has�lff has not received a Lead-Based Paint Disclosure. 58 59 8.PRORATIONS: Proratable items shall include,without limitation,rents and deposits(if any)from tenants,Special 60 Service Area tax for the year of closing only, utilities, water and sewer, and homeowner or condominium association 61 fees (and Master/Umbrella Association fees, if applicable). Accumulated reserves of a Homeowner/Condominium 62 Association(s)are not a proratable item.Sellrepresents that as of the Date of Acceptance Homeowner/Condominium 63 Association(s)fees are$— NIA. per W Ilk _ (and,if applicable,fees for a Master/Umbrella Association are 64 S_ _fA& per r4N Seller agrees to pay prior to or at Closing any special assessments(governmental or 65 association)confirmed prior to Date of Acceptance.Installments due after the year of Closing for a Special Service Area 66 shall not be a proratable item. The general Real Estate taxes shall be prorated as of the date of Closing based on 67 —Lo 0 "/o of the most recent ascertainable full year tax bill. All prorations shall be final as of Closing, except as 68 provided in Paragraph 20.If the amount of the most recent ascertainable tax bill reflects a homeowner,senior citizen or 69 other exemption,Seller has submitted or will submit in a timely manner all necessary documentation to the Assessor's 70 Office,before or after Closing,to preserve said exemption(s). 71 72 9.ATTORNEY REVIEW:The respective attorneys for the Parties may approve,disapprove,or make modifications to 73 this Contract,other than stated Purchase Price,within five(5)Business Days after the Date of Acceptance. Disapproval 74 or modification of this Contract shall not be based solely upon stated Purchase Price. Any notice of disapproval or 75 proposed modification(s)by any Party shall be in writing.If written notice is not served within the time specified,this 76 provision shall be deemed waived by the Parties and this Contract shall remain in full force and effect.If prior to 77 the expiration of ten(10)Business Days after Date of Acceptance,written agreement is not reached by the Parties 78 with respect to resolution of proposed modifications,then this Contract shall be null and void. 79 80 10. PROFESSIONAL INSPECTIONS: Buyer may secure at Buyer's expense (unless otherwise provided by 81 governmental regulations) a home, radon, environmental, lead-based paint and/or lead-based paint hazards (unless 82 separately waived),and/or wood destroying insect infestation inspection(s)of said Real Estate by one or more licensed 83 or certified inspection service(s). Buyer shall soave written notice upon Seller or Seller's attorney of any defects 84 disclosed by the inspections) which are unacceptable to Buyer, together with a copy of the pertinent pages) of the 85 report(s)within five(5)Business Days (ten (10)calendar days for a lead-based paint and/or lead-based paint hazard 86 inspection)after Date of Acceptance.If writtea notice is not served within the time specified,this provision shall be 87 deemed waived by the Parties and this Contract shall remain in full force and effect.If prior to the expiration of 88 ten(10)Business Days after Date of Acceptance,written agreement is not reached by the Parties with respect to 89 resolution of inspection issues, then this Contract shall be null and void. The home inspection shall cover only 90 major components of the Real Estate,including but not limited to,central heating system(s),central cooling system(s), 91 plumbing and well system,electrical system,roof;walls,windows,ceilings,floors,appliances and foundation. A major 92 component shall be deemed to be in operating condition if it performs the function for which it is intended,regardless of 93 age,and does not constitute a threat to health or safety.The fact that a functioning component may be at the end of its 94 useful life shall not render such component defective for the purpose of this paragraph. Buyer shall indemnify Seller 95 and hold Seller harmless from and against any loss or damage caused by the acts or negligence of Buyer or any person 96 performing any inspection(s). Buyer agrees minor repairs and routine maintenance Items are not a part of this 97 contingency. If radon mitigation is performed,Seller shall pay for a retest. 98 99 100 Disclosure (see page 11). This Contract is contingent upon Buyer o t mongage commitment 101 (except for matters of title and s uyees rcontrol)on or before ,20_ 102 , Buyer Initial 5,g4 Buyer Initial Seller Initial Seller Initial 0 Address 652 McBRIDE STREET, ELGIN, ILLINOIS 60120 Page 2 103 104 required. The interest rate(initial rate,if applicable)shall not exceed_%per annum, amortized over not 1 105 years. Buyer shall pay loan origination fee and/or discount points not to exceed %of the amount. 106 Buyer shall pay the cost of application,usual and customary processing fees and closing costs c by lender. (If 107 FHANA, complete Paragraph 35.) (If closing cost credit, complete Paragraph 33.) Buy all make written loan 108 application within five (5) Business Days after the Date of Acceptance. Failure to shall constitute an act of 109 Default under this Contract. If Buyer,having applied for the loan specifi ove,is usable to obtain such loan 110 commitment and serves written notice to Seller within the time spec' ,this Contract shall be null and void.If 111 written notice of Inability to obtain such toss commitment is erved within the time specified,Buyer shall be 112 deemed to have waived this contingency and this Contr s all remain in full force and effect. Unless otherwise 113 provided in Paragraph 31,this Contract shall no contingent upon the sale and/or closing of Buyer's existing 114 real estate. Buyer shall be deemed to have ed the financing conditions of this paragraph if Buyer obtains a loan 115 commitment in accordance with the s of this paragraph even though the loan is conditioned on the sale and/or 116 closing of Buyer's existing r ate. If Selkr at Seller's option and expense, within thirty(30) days after Buyer's 117 notice,procures for Buy ctl commitment or notifies Buyer that Seller will accept a purchase money mortgage upon 118 the same terms, ntract shall remain in full force and effect.In such event, Seller shall notify Buyer within five(5) 119 Business tl er Buyer's notice of Seller's election to provide or obtain such financing,and Buyer shall famish to 120 Sells ender requested information and shall sign all papers necessary to obtain the mortgage commitment and to 121 61,40.shol left. 122 123 12. HOMEOWNER INSURANCE: This Contract is contingent upon Buyer's securing evidence of insurability for an 124 Insurance Service Organization Homeowner 3 (ISOH03)or applicable equivalent policy at Preferred Premium rates 125 within ten(10)Business Days after Date of Acceptance. If Buyer is unable to obtain evidence of insurability and 126 serves written notice with proof of same to Seller within the time specified,this Contract shall be null and void.If 127 written notice Is not served within the time specified,Buyer shall be deemed to have waived this contingency and 128 this Contract shall remain in full force and effect. 129 130 13. FLOOD INSURANCE: Unless previously disclosed in the Illinois Residential Real Property Disclosure Report, 131 Buyer shall have the option to declare this Contract null and void if the Real Estate is located in a special flood hazard 132 area which requires Buyer to carry flood insurance. If written notice of the option to declare this Contract null and 133 void is not given to Seller within ten(10)Business Days after Date of Acceptance or within the term specified in 134 Paragraph it (whichever is later), Buyer shall be deemed to have waived such option and this Contract shall 135 remain in full force and effect.Nothing herein shall be deemed to affect any rights afforded by the Residential Real 136 Property Disclosure Act. 137 1 139 contained in this paragraph,which may be contrary to other terms of this Contract,shall supersede any confl�__ s. 140 (a) Title when conveyed shall be good and merchantable,subject to terms,provisions,covenants ditio ns of 141 the Declaration of Condominium/Covenants,Conditions and Restrictions and all amen ;public and utility 142 easements including any easements established by or implied from the DeclarqtiaffM Condominium/Covenants, 143 Conditions and Restrictions or amendments thereto;party wall rights mements;limitations and conditions 144 imposed by the Condominium Property Act;installments due the date of Closing of general assessments 145 established pursuant to the Declaration of Condomini versants,Conditions and Restrictions. 146 (b) Seller shall be responsible for all regular eats due and levied prior to Closing and for all special 147 assessments confirmed prior to the Da ceeptance. 148 (c) Buyer has,within five(5)Bus' ys from the Date of Acceptance,the right to demand from Seller items as 149 stipulated by the Illin ' ndominium Property Act, if applicable, and Seller shall diligently apply for same. 150 This Contract' 3ect to the condition that Seller be able to procure and provide to Buyer,a release or waiver 151 of an on of first refusal or other pre-emptive rights of purchase created by the Declaration of 152 ominium/Covenants, Conditions and Restrictions within the time established by the Declaration of 153 , Buyer Initial Buyer Initial _Seller Initial Seller Initial D Address 652 cBRIDE STREET, ELGIN, ILLINOIS 60120 Page 3 154 . 155 (d) In the event the documents and information pro:- nr Seiler to Buyer disclose that the exis eats 156 are in violation of existing rules, regulations o restrictions or that the terms lions contained 157 within the documents would unreasonably restyer's use of the or would result in increased 158 financial obligations unacceptable to Buyer in ction mg the Real Estate, then Buyer may 159 declare this Contract null and void by giving ntten notice within five(5)Business Days after the 160 receipt of the documents and infor required by Paragraph 14 (cN listing those deficiencies which 161 are unacceptable to Bu a ten notice Is not served within the time specified,Buyer shall be deemed 162 to have waived ontingency,and this Contract shall remain in full force and effect. 163 (e) Sel not be obligated to provide a condominium survey. 164 ' 165 166 15. THE DEED: Seller shall convey or cause to be conveyed to Buyer or Buyer's designated grantee good and 167 merchantable title to the Real Estate by recordable general Warranty Deed, with release of homestead rights, (or the 168 appropriate deed if title is in trust or in an estate), and with real estate transfer stamps to be paid by Seller (unless 169 otherwise designated by local ordinance).Title when conveyed will be good and merchantable,subject only to: general 170 real estate taxes not due and payable at the time of Closing,covenants,conditions,and restrictions of record, building 171 lines and easements,if any,so long as they do not interfere with the current use and enjoyment of the Real Estate. 172 173 16. TITLE: At Seller's expense, Seller will deliver or cause to be delivered to Buyer or Buyer's attorney within 174 customary time limitations and sufficiently in advance of Closing, as evidence of title in Seller or Grantor, a title 175 commitment for an ALTA title insurance policy in the amount of the Purchase Price with extended coverage by a title 176 company licensed to operate in the State of Illinois,issued on or subsequent to the Date of Acceptance,subject only to 177 items listed in Paragraph 15.The requirement of providing extended coverage shall not apply if the Real Estate is vacant 178 land.The commitment for title insurance furnished by Seller will be conclusive evidence of good and merchantable title 179 as therein shown,subject only to the exceptions therein stated.If the tide commitment discloses unpermitted exceptions, 180 or if the Plat of Survey shows any encroachments which are not acceptable to Buyer, then Seller shall have said 181 exceptions or encroachments removed,or have the title insurer commit to insure against loss or damage that may be 182 caused by such exceptions or encroachments.If Seller fails to have unpermitted exceptions waived or title insured over 183 prior to Closing,Buyer may elect to take the title as it then is,with the right to deduct from the Purchase Price prior 184 encumbrances of a definite or ascertainable amount.Seller shall furnish Buyer at Closing an Affidavit of Title covering 185 the date of Closing,and shall sign any other customary forms required for issuance of an ALTA Insurance Policy. 186 1.87 17, PLAT OF SURVEY: Not less than one (1) Business Day prior to Closing, except where the Real Estate is a 188 condominium(see Paragraph 14)Seller shall,at Seller's expense,finnish to Buyer or Buyer's attorney a Plat of Survey 189 dated not more than six(6)months prior to the date of Closing,prepared by an Illinois Professional Land Surveyor, 190 showing any encroachments,measurements of all lot lines,all easements of record,building set back lines of record, 191 fences,all buildings and other improvements on the Real Estate and distances therefrom to the nearest two lot lines.In 192 addition,the survey to be provided shall be a boundary survey conforming to the current requirements of the appropriate 193 state regulatory authority.The survey shall show all comers staked,flagged,or otherwise monumented.The survey shall 194 have the following statement prominently appearing near the professional land surveyor seal and signature: "This 195 professional service conforms to the current Illinois minimum standards for a boundary survey".A Mortgage Inspection, 196 as defined,is not a boundary survey,and is not acceptable. 197 198 18.ESCROW CLOSING. At the election of either Party,not less than five(5)Business Days prior to the Closing,this 199 sale shall be closed through an escrow with the lending institution or the title company in accordance with the provisions 200 of the usual form of Deed and Money Escrow Agreement,as agreed upon between the Parties,with provisions inserted 201 in the Escrow Agreement as may be required to conform with this Contract.The cost of the escrow shall be paid by the 202 Party requesting the escrow. If this transaction is a cash purchase(no mortgage is secured by Buyer),the Parties shall 203 share the title company escrow closing fee equally. 204 Buyer Initial Buyer Initial Seller Initial Seller Initial (� _ Address_ 652 McBRIDE STREET, ELGIN, ILLINOIS 60120 Page 4 205 19.D_MAGE TO REAL ESTATE PRIOR TO CLO,SIK..If,prior to delivery of the deed,the Real Estate shall be 206 destroyed or materially damaged by fire or other casualty,or the Real Estate is taken by condemnation,then Buyer shall 207 have the option of either terminating this Contract (and receiving a refund of earnest money) or accepting the Real 208 Estate as damaged or destroyed,together with the proceeds of the condemnation award or any insurance payable as a 209 result of the destruction or damage, which gross proceeds Seller agrees to assign to Buyer and deliver to Buyer at 210 closing.Seller shall not be obligated to repair or replace damaged improvements.The provisions of the Uniform Vendor 211 and Purchaser Risk Act of the State of Illinois shall be applicable to this Contract,except as modified in this paragraph. 212 213 20.REAL ESTATE TAX ESCROW: In the event the Real Estate is improved,but has not been previously taxed for 214 the entire year as currently improved,the sum of three percent(3%)of the Purchase Price shall be deposited in escrow 215 with the title company with the cost of the escrow to be divided equally by Buyer and Seller and paid at Closing.When 216 the exact amount of the taxes prorated under this Contract can be ascertained, the taxes shall be prorated by Seller's 217 attorney at the request of either Party,and Seller's share of such tax liability after reproration shall be paid to Buyer from 218 the escrow funds and the balance,if any,shall be paid to Seller.If Seller's obligation after such reproration exceeds the 219 amount of the escrow fiords,Seller agrees to pay such excess promptly upon demand. 220 221 21, SELLER REPRESENTATIONS: Seller represents that Seller has not received written notice from any 222 Governmental body or Homeowner Association regarding(a)zoning,building, fire or health code violations that have 223 not been corrected;(b)any pending rezoning;(c)any pending condemnation or eminent domain proceeding; or(d) a 224 proposed or confirmed special assessment and/or Special Service Area affecting the Real Estate. Seller represents, 225 however,that,in the case of a special assessment and/or Special Service Area,the following applies: 226 1.There[check one]isFU_is not[*a proposed or pending unconfirmed special assessment affecting the Real 227 Estate not payable by Seller after date of Closi . 228 2.The Real Estate[cheek one]is Iy is not located within a Special Service Area,payments for which will 229 not be the obligation of Seller after date of Closing. 230 If any of the representations contained herein regarding non-Homeowner Association special assessment or 231 Special Service Area ore unacceptable to Buyer,Buyer shall have the option to declare this Contract null and 232 void. If written notice of the option to declare this Contract null and void is not given to Seller within ten(10) 233 Business Days after Date of Acceptance or within the term specified in Paragraph 11 (whichever is laterN Buyer 234 shall be deemed to have waived such option and this Contract shall remain in full force and elect.Seiler further 235 represents that Seller has no knowledge of boundary line disputes,easements or claims of easement not shown by the 236 public records, any hazardous waste on the Real Estate or any improvements for which the required permits were not 237 obtained.Seller represents that there have been no improvements to the Real Estate which are not either included in full 238 in the determination of the most recent real estate tax assessment or which are eligible for home improvement tax 239 exemption. 240 241 22.CONDITION OF REAL ESTATE AND INSPECTION: Seller agrees to leave the Real Estate in broom clean 242 condition.All refuse and personal property that is not to be conveyed to Buyer shall be removed from the Real Estate at 243 Seller's expense before possession.Buyer shall have the right to inspect the Real Estate,fixtures and personal property 244 prior to possession to verify that the Real Estate,improvements and included personal property are in substantially the 245 same condition as of the Date of Acceptance,normal-wear and tear excepted. 246 247 23. GOVERNMENTAL COMPLIANCE: Parties agree to comply with the reporting requirements of the applicable 248 sections of the Internal Revenue Code and the Real Estate Settlement Procedures Act of 1974,as amended. 249 250 24.BUSINESS DAYS/HOURS: Business Days are defined as Monday through Friday, excluding Federal holidays. 251 Business Hours are defined as 8:00 A.M.to 6:00 P.M.Chicago time. 252 253 25, FACSIMILE: Facsimile signatures shall be sufficient for purposes of executing, negotiating, and finalizing this 254 Contract. Buyer Initial Buyer Initial Seller Initial Seller Initial Ott/ Address 652 Me RIDE STREET ELGIN___11,LINQIS 60120 Page 5 255 26. DIRECTION TO ESCROWEE: In every instance where this Contract shall be deemed null and void or if this 256 Contract may be terminated by either Party,the following shall be deemed incorporated:"and earnest money refunded to 257 Buyer upon written direction of the Parties to Escrowee or upon entry of an order by a court of competent jurisdiction". 258 259 27.NOTICE:All Notices, except as provided otherwise in Paragraph 31(C)(2),shall be in writing and shall be served 260 by one Party or attorney to the other Party or attorney. Notice to any one of a multiple person Party shall be sufficient 261 Notice to all.Notice shall be given in the following manner: 262 (a) By personal delivery of such Notice;or 263 (b) By mailing of such Notice to the addresses recited herein by regular mail and by certified mail,return receipt 264 requested. Except as otherwise provided herein,Notice served by certified mail shall be effective on the date of 265 mailing;or 266 (c) By sending facsimile transmission. Notice shall be effective as of date and time of facsimile transmission, 267 provided that the Notice transmitted shall be sent on Business Days during Business Hours. In the event fax 268 Notice is transmitted during non-business hours,the effective date and time of Nodce is the first hour of the next 269 Business Day after transmission;or 270 (d) By sending e-mail transmission.Notice shall be effective as of date and time of e-mail transmission,provided 271 that the Notice transmitted shall be sent during Business Hours,and provided further that the recipient provides 272 written acknowledgment to the sender of receipt of the transmission (by e-mail, facsimile, regular mail or 273 commercial overnight delivery). In the event e-mail Notice is transmitted during non-business hours, the 274 effective date and time of Notice is the fast hour of the next Business Day after transmission;or 275 (e) By commercial overnight delivery (e.g, FedEx). Such Notice shall be effective on the next Business Day 276 following deposit with the overnight delivery company. 277 278 28.PERFORMANCE: Time is of the essence of this Contract.In any action with respect to this Contract,the Parties 279 are free to pursue any legal remedies at law or in equity 280 a There 281 shall be no disbursement of earnest money unless Escrowee has been provided written agreement from Seller and Buyer. 282 Absent an agreement relative to the disbursement of earnest money within a reasonable period of time,Escrowee may 283 deposit funds with the Clerk of the Circuit Count by the filing of an action in the nature of inteapleader.Escrowee shall 284 be reimbursed from the earnest money for all costs, including reasonable attorney fees, related to the filing of the 285 interpleader action. Seller and Buyer shall indemnify and hold Escrowee harmless from any and all conflicting claims 286 and demands arising under this paragraph. 287 288 29. CHOICE OF LAW/GOOD FAITH: All terms and provisions of this Contract including,but not limited to, the 289 Attorney Review and Professional Inspection paragraphs,shall be governed by the laws of the State of Illinois and are 290 subject to the covenant of good faith and fair dealing implied in all Illinois contracts. 291 292 30. OTHER PROVISIONS: This Contract is also subject to those OPTIONAL PROVISIONS selected for use and 293 initialed by the Parties which are contained in the following paragraphs and attachments,if any: 294 295 296 THE FOLLOWING OPTIONAL PROVISIONS APPLY ONLY IF INITIALED BY ALL PARTIES 297 298 _31 SALE OF BUYER'S REAL ESTATE: 299 Initials 300 (A)REPRESENTATIONS ABOUT BUYER'S REAL ESTATE:Buyer represents to Seller as follows: 301 (1) Buyer owns real estate commonly known as(address): 302 303 (2) Buyer[check onel❑ has10 has not entered into a contract to sell said real estate.If Buyer has entered into a contract to 304 sell said real estate,that contract: 305 (a) &heck onel 1I iso is not subject to a mortgage contingency. Buyer Initial Buyer Initial Seller Initial Seller Initial Address 652 Me—RIDE S TREET E Page 6 306 (b) [check one] lu isfU is not subject to a real estate sale contingency. 307 (c) [cheek one] FE3 isFQ3 is not subject to a real estate closing contingency. 308 (3) Buyer[ereck one]{❑ has 0 has not listed said real estate for sale with a licensed real estate broker and in a local 309 multiple listing service. 310 (4) If Buyer's real estate is not listed for sale with a licensed real estate broker and in a local multiple listing service, 311 Buyer check one/ 312 (a) ILI Shall list said real estate for sale with a licensed real estate broker who will place it in a local multiple listing 313 service within five(5)Business Days after the Date of Acceptance. 314 For information only:Broker: 315 Broker's Address: Phone: x-- 316 (b)j❑Does not intend to list said real estate for sale. 317 (B)CONTINGENCIES BASED UPON SALE AND/OR CLOSE OF BUYER'S REAL ESTATE: 318 (1) This Contract is contingent upon Buyer having entered into a contract for the sale of Buyer's real estate that is in full force 319 and effect as of .20 Such contract shall provide for a closing date not later than the Closing 320 Date set forth in this Contract. V hvritterr notice is served on or before the date set forth in this subparagraph that 321 Buyer has not procured a contract for the sale of Buyer's real estate,this Contract shall be null and void.V written 322 notice that Buyer has not procured a contract for the sale of Buyer's real estate is not served on or before the close 323 of business on the date set forth in this subparagraph,Buyer sball be deemed to have waived all contingencies 324 contained in this Paragraph 31,and this Contract shall remain in full fora and effect,(If this paragraph is used,then 325 the following paragraph must be completed.) 326 (2) In the event Buyer has entered into a contract for the sale of Buyer's real estate as set forth in Paragraph 31 (B)(1)and that 327 contract is in full force and effect,or has entered into a contract for sale of Buyer's real estate prior to the execution of this 328 Contract, this Contract is contingent upon Buyer closing the sale of Buyer's real estate on or before 329 120 .If written notice that Buyer has not closed the sale of Buyer's real estate is 330 served before the close of business on the next Business Day after the date set forth in the preceding sentence,this 331 Contract shall be null and void.If written notice is not served as described in the preceding sentence,Buyer shall be 332 deemed to have waived all contingencies contained in this Paragraph 31,and this Contract shall remain in M fora 333 and effect. 334 (3) If the contract for the sale of Buyer's real estate is terminated for any reason after the date set forth in Paragraph 31(B)(1) 335 (or after the date of this Contract if no date is set forth in Paragraph 31(B)(1)),Buyer shall,within three(3)Business Days 336 of such termination,notify Seller of said termination.Unless Buyer,as part of said notice,waives all contingencies in 337 Paragraph 31 and complies with Paragraph 31(D),this Contract shall be nuB and void as of the date of notice.If 338 written notice as required by this subparagraph is not served within the time specified,Buyer shall be in default 339 under the terms of this Contract. 340 (C)SELLER'S RIGHT TO CONTINUE TO OFFER REAL ESTATE FOR SALE:During the time of this contingency,Seller 341 has the right to continue to show the Real Estate and offer it for sale subject to the following: 342 (1) If Seller accepts another bona fide offer to purchase the Real Estate while the contingencies expressed in subparagraph(B) 343 are in effect,Seller shall notify Buyer in writing of same.Buyer shall then have hours after Seller gives such 344 notice to waive the contingencies set forth in Paragraph 31(B),subject to Paragraph 31(D). 345 (2) Sdices notice to Buyer (commonly referred to as a "kick-out" notice) sball be served on Buyer, not Buyer's 346 attorney or Buyer's real estate agent.Courtesy copies of such"kick-out"notice should be sent to Buyer's attorney and 347 real estate agent,if known.Failure to provide such courtesy copies shall not render notice invalid. Notice to any one of a 348 multiple-person Buyer sball be sufficient notice to all Buyers.Notice for the purpose of this subparagraph only shall be 349 served upon Buyer in the following manner: 350 (a) By personal delivery of such notice effective at the time and date of personal delivery;or 351 (b) By mailing of such notice to the addresses recited herein for Buyer by regular trail and by certified mail. Notice 352 served by regular mail and certified mail shall be effective at 10:00 A.M on the morning of the second day following 353 deposit of notice in U.S.Mail;or 354 (c) By commercial overnight delivery(e.g.,FedEx).Such notice shall be effective upon delivery or at 4:00 P.M. Chicago 355 time on the next delivery day following deposit with the overnight delivery company,whichever first occurs. 356 (3) If Buyer complies with the provisions of Paragraph 31 (D)then this Contract shall remain in full force and effect 357 (4) If the contingencies set forth in Paragraph 31 (B) are NOT waived in writing within said time period by Buyer, this 358 Contract shall be null and void. 359 (5) Except as provided in subsections to subparagraph(C) (2) above, all notices shall be made in the manner provided by Buyer Initial 59,5 Buyer Initial Seller Initial Seller Initial AOzv Address 652 McBRIDE STREET, ELGIN, ILLINOIS 60120 Page 7 360 Paragraph 27 of this Contract. 361 (6) Buyer waives any ethical objection to the delivery of notice under this paragraph by Seller's attorney or representative. 362 (D)WAIVER OF PARAGRAPH 31 CONTINGENCIES:Buyer shall be deemed to have waived the contingencies in Paragraph 363 31 (B)when Buyer has delivered written waiver and deposited with the Escrowee the additional sum of S 364 earnest money within the time specified.If Buyer fails to deposit the additional earnest money within the time specified,the 365 waiver shall be deemed ineffective and this Contract shall be null and void. 366 (E) BUYER COOPERATION REQUIRED: Buyer authorizes Seller or Seller's agent to verify representations contained in 367 Paragraph 31 at any time,and Buyer agrees to cooperate in providing relevant information. 368 369 ____32.CANCELLATION OF PRIOR REAL ESTATE CONTRACT:In the event either Party has entered 370 into a prior real estate contract, this Contract shall be subject to written cancellation of the prior contract on or before 371 .20 .In the event the prior contract is not cancelled within the time specified,this Contract shall be 372 null and void. Notice to the purchaser under the prior contract should not be served until after Attorney Review and 373 Professional Inspections provisions of this Contract have expired,been satisfied or waived. 374 375 __33. CLOSING QOST_CREDIT: Provided Buyer's lender permits such credit to show on the HUD-1 376 Settlement Statement, and if not, such lesser amount as the lender permits, Seller agrees to credit to Buyer 377 s at closing. 378 379 ____34.INTEREST BEARING ACCOUNT:Earnest money(with a completed W-9 and other required forms), 380 shall be held in a federally insured interest bearing account at a financial institution designated by Escrowee.All interest tamed on 381 the earnest money shall accrue to the benefit of and be paid to Buyer.Buyer shall be responsible for any administrative fee(not 382 to exceed$100)cbarged for setting up the account.In anticipation of Closing,the Parties direct Escrowee to close the account no 383 sooner than ten(10)Business Days prior to the anticipated Closing data 384 385 _ __35,VA OR FHA FINANCING:If Buyer is seeking VA or FHA financing,this provision shall be applicable: 386 Buyer_may terminate this Contract if the Purchase Price set forth herein exceeds the appraised value of the Real Estate, as 387 determined by the Veterans Administration(VA)or the Federal Housing Administration (FHA). However, Buyer shall have the 388 option of proceeding with this Contract without regard to the amount of the appraised valuation.If VA,the Funding Fee,or if FHA, 389 the Mortgage Insurance Premium(IvIIP)shall be paid by Buyer and&keat enelFL—) shall shall not be added to the mortgage 390 loan amount Seller agrees to pay additional miscellaneous expenses required by lender not to exceed$200.00.Required FHA or 391 VA amendments shall be attached to this Contract. It is expressly agreed that notwithstanding any other provisions of this 392 Contract,Buyer shall not be obligated to complete the purchase of the property described herein or to incur any penalty by forfeiture 393 of earnest money deposits or otherwise unless Buyer has been given, in accordance with HUDIFHA requirements, a written 394 statement by the Federal Housing Commissioner setting forth the appraised value of the property(excluding Closing costs)of not 395 less than s .Buyer shall have the privilege and option of proceeding with the consummation of the 396 Contract without regard to the amount of the appraised valuation.The appraised valuation is arrived at to determine the maximum 397 mortgage the Depament of Rousing and Urban Development will insure/gaarantee.HUD and the mortgagee do not warrant the 398 value nor the condition of the properly. Buyer should satisfy himself/herself that the price and condition of the property are 399 acceptable. 400 401 ____36.INTERIM FINANCING:This Contract is contingent upon Buyer obtaining a written commitment for 402 interim financing on or before 120 in the amount of S ,If Buyer is unable 403 to secure the interim financing commitment and gives written notice to Seller within the time specified,this Contract shall be 404 null and void.If written notice is not served within the time specified,this provision shall be deemed waived by the Parties 405 and this Contract shall remain in full force and effect. 406 407 _ _37 WELL AND/OR SEMC/SANITARy INSPECTIONS: Seller shall obtain at Seller's expense a well 408 wat_er test stating that the well delivers not less than five(5)gallons of water per minute and including a bacteria and nitrate test(and 409 lead test for FHA loans)and/or a septic report from the applicable County Health Department,a Licensed Environmental Health 410 Practitioner,or a licensed well and septic inspector,each dated not more than ninety(90)days prior to Closing,stating that the well 411 and water supply and the private sanitary system are in proper operating condition with no defects noted. Seller shall remedy any 412 defect or deficiency disclosed by said reporgs)prior to Closing;provided that if the cost of remedying a defect or deficiency and the 413 cost of landscaping together exceed$3,000.00,and if the Parties cannot reach agreement regarding payment of such additional cost, 414 then this Contract may be terminated by either Party. Additional testing recommended by the report shall be obtained at Seller's Buyer Initial Bt yer Initial Seller Initial ,Seller Initial Address 652 MCBRIDE STREET ELGIN ILLINOIS fiQ120 Page 8 415 expense,If the report recommends additional testing after Closing,the Parties shall have the option of establishing an escrow with a 416 mutual cost allocation for necessary repairs or replacements,or either Party may terminate this Contract prior to Closing.Seller shall 417 deliver a copy of such evaluation(s)to Buyer not less than one(1)Business Day prior to Closing. 418 419 ____38.WOOD DESTROYING INFESTATION: Notwithstanding the provisions of Paragraph 10,within ten 420 (I O)Business Days after the Date of Acceptance,Seller at Seller's expense shall deliver to Buyer a written report,dated not more 421 than six(6)months prior to the date of Closing,by a licensed inspector certified by the appropriate state regulatory authority in the 422 subcategory of termites,stating that there is no visible evidence of active infestation by termites or other wood destroying insects. 423 Unless otherwise agreed between the Parties, if the report discloses evidence of active infestation or structural damage,Buyer has 424 the option within five(5)Business Days of receipt of the report to proceed with the purchase or declare this Contract null and void. 425 This paragraph shall not apply to condominiums or to newly constructed property having been occupied for less than one year 426 following completion of construction. 427 428 _M.POST-CLOSING FOSS S ION:Possession shall be delivered no later than 11:59 P.M.on the date that 429 is —days after the date of Closing("the Possession Date'). Seller shall be responsible for all utilities,contents and liability 430 insurance, and home maintenance expenses until delivery of possession. Seller shall deposit in escrow at Closing 431 with lcboose one/ I LI one percent (I%) of the Purchase Price or ty the sum of S 432 to be paid by Eserowee as follows: a)The sum of$ per day for use and occupancy from and including the 433 .day after Closing to and including the day of delivery of possession,if on or before the Possession Date;b)The amount per day 434 equal to five(5) times the daily amount set forth herein shall be paid for each day after the Possession Date specified in this 435 paragraph that Seller remains in possession of the real estate;and c)The balance,if any,to Seller after delivery of possession and 436 provided that the terms of Paragraph 22 have been satisfied. Seller's liability under this paragraph shall not be limited to the amount 437 of the possession escrow deposit referred to above. Nothing herein shall be deemed to create a Landlor&Tenant relationship 438 between the Parties. 439 440 _ 40. "AS IS"CONDITION: This Contract is for the sale and purchase of the Real Estate and personal 441 property in its"As Is"condition as of the Date of Offer.Buyer acknowledges that no representations,warranties or guarantees with 442 respect to the condition of the Real Estate and personal property have been made by Seller or Seller's Agent other than those known 443 defects, if any, disclosed by Seller. Buyer may conduct an inspection at Buyer's expense. In that event Seller shalt make the 444 property available to Buyer's inspector at reasonable times.Buyer shall indemnify Seller and hold Seller harmless from and against 445 any loss or damage caused by the acts or negligence of Buyer or any person performing any inspection(s). In the event the 446 inspection reveah that the condition of the improvements,fatares or personal property to be conveyed or transferred is 447 unacceptable to Bayer and Buyer to notifies Seller within five(5)Business Days.aRer the Date of Acceptance,this Contract 448 shall be null and void.Failure of Bayer to notify Seller or to conduct said Inspection operates as a waiver of Buyer's right to 449 terminate this Contract under this paragraph and this Contract shall remain in full force and effect.Buyer acknowledges the 450 provisions of Paragraph 10 and the warranty provisions of Paragraph 3 do not apply to this Contract. 452 _41.CONFIRMATION OF DUAL AGENCY;The Parties confirm that they have previously consented to 453 (Licensee)acting as a Dual Agent in providing brokerage services 454 on their behalf and specifically consent to Licensee acting as a Dual Agent with regard to the transaction referred to in this Contract. 455 456 42.SPECIFIED PARTY APPROVAL:This Contract is contingent upon the approval of the Real Estate by 457 ~— - Buyers specified party, 458 within five(5)Business Days after the Date of Acceptance. In the event Buyer's specified party does not approve of the Real 459 Estate and written notice is given to Seller within the time specified,this Contract shall be null and void.Uwritten notice is 460 not served within the time specified,this provision shall be deemed waived by the Parties and this Contract ihall remain in 461 full force and effect. 462 463 _43. MUCELLANEOUS PROVISIONS:Buyer's and Seller's obligations are contingent upon the Parties 464 entering into a separate written agreement consistent with the terns and conditions set forth herein,and with such additional terns 465 as either Party may deem necessary,providing for one or more of the following: (che&applicable boWes)) 466 ❑ Assumption of Seller's Mortgage ❑ New Construction 467 ❑ CommcreiaUlnvestmentlStarker Exchange ❑ Vacant Land 468 ❑ Cooperative Apartment ❑ Ar6clesofAgreementforDeedorPwchaseMoneyMortgage Buyer Initial Buyer Initial Seller Initial Seller Initial Iffig W Address 652 W IDE STREET ELGIN ILLINOIS 60120 Page 9 467 THIS DOCUMENT WILL BECOME A LEGALLY BINDING CONTRACT WHEN SIGNED BY ALL 468 PARTIES AND DELIVERED TO THE PARTIES OR THEIR AGENTS. 469 470 The Parties represent that text of this form has not been altered and is identical to the official Multi-Board Residential 471 Real Estate rQntract 4.0. 472 5eepte W24 20 14 October 22 2014 473 Date o DATE OF ACCEPTANCE 474 gg tt 476 uy t r ure 477 u er tgnature a er ignsture 478 C' of Elgin Robert 0. Werrbach Trust 479 Pnnt uyer(s) antes eWHtre Print a s) am s equ re 480 150 Dexter Court 658 McBRIDE STREET 481 A ress Address 482 _E_lgin IL 60120 ELQ91N ILLINOIS 60120 483 it— State zip Ztty fate Zip 484 (84y7)931-5655 485 Plione E-mail one E-mail 486 FOR INFORMATION ONL Y 487 N/A None 488 Selling Office MLSH Listing Office 489 N/A 4990 �er s signal gent Seller's gent 492 Phone Fax Phone Fax 493 N/A 494 E-mail E-mail 495 William A.Cogley cogky_w�ckyofelgln org 496 Buver s Attorney —�-mail-- Seller's Attorney E-mail 497 (847)931-5659 (847)931.5665 498 Phone Fax Phone Fax 499 N/A 500 Mortgage Company Phone Homeowner' n o Association(if any one 501 N/A 502 Loan officer Fax Managem ent CoJOther Contact Phone 503 504 02006. Illinois Real Estate Lawyers Association. All rights reserved. Unauthorized duplication or alteration of this form or any 505 portion thereof is prohibited. Official form available at www.reallaw.org(web site of Illinois Real Estate Lawyers Association). 506 507 Approved by the following organizations February 2006 508 Illinois Real Estate lawyers Association,Aurora Tri-County Association of REALTORS®,Chicago Association of REALTORSb. 509 DuPage County Bar Association.Kane County Bar Association,Lake County Bar Association,McHenry County Association of 510 RF.ALTORSa.North Shore-Barrington Association of REALTORS".Northwest Suburban Bar Association,Oak Park Board of 511 REALTORS",REALTOR*'Association of the Fox Valley,REALTOR*Association of the Northwest Chicagoland, 512 Mainstreet Organization of REALTORS®,Three Rivers Association of REALTORS®,West'rowns Board of REALTORS'* 513 514 515 516 517 518 Seller Rejection: This offer was presented to Seller on 20 at AM/PM 519 and rejected on 20 at__AWPM 520 (Seller initials) (Seller initials) Buver Ini/ial ILAP Browr Initial Seller Initial Seller Initial Address 652 Mc IDE STREET ELGIN ILLINOIS 60120 Page 10 of 11 524 Loan Status Disclosure 525 eerrowei s/ 526 527 Current Address: Street address 528 529 City or Town state Zip code 530 Purchase Price dollar amount prequalified,pre-approved,or approved for 531 $ ,Loan Amount$ with a total monthly payment not to 532 exceed$ 533 534 The current status of prequalification or application status of the borrowers/buyers is: 535 536 )Prequaliftcation,WTTHOUT credit review*: 537 The borrowers/buyers listed on this form have INQUUM with our firm about financing to pu aso a home and the 538 documentation they provided regarding income and down payment has been reviewed by loan originator listed 539 below. it is the opinion of said loan originator that the borrowers/buyers shouldAyould qua' the terms fisted in the 540 attached letter. 541 542 IF]Prequalifcation,WITH credit review*: 543 The borrowers/buyers listed on this form have INQUIRED with our firm about ancing to purchase a home and the 544 documentation of income,down payment and credit report have been revs -by the loan originator listed below.After 545 careful review,it is the opinion of said ban originator that the borrowers/b ers shouldMrouid qualify for the terms listed 546 in the attached letter. 547 This Prequalification is]WITH o i l WITHOUT Automated Unde riling approval. 548 549 [J Pre-Approval*: 550 The borrowers/buyers have APPLIED with our firm for a mo age ban to purchase a home and the loan application 551 has been approved by an Automated Underwriting Syste issued or accepted by FNMA,FHLMC,HUD or Nationally 552 recognized purchaser/pooler of mortgage loans,and a nditional commitment has been issued.See attached 553 commitment. 554 555 l]Approval*: 556 The borrowers/buyers have APPLIED with r ftrm for a mortgage ban to purchase a home and the loan application 557 has been reviewed by the actual lender's erwriter and conditional commitment has been issued.See attached 558 commitment. 559 560 *Please note that nothing contain herein constitutes a loan commitment or guarantee of financing and is used for 561 disclosure purposes only.See al commitment letter for specific conditionstrequirements of the lender.All approvals 562 are subject to satisfactory ap sisal,title,and no material change to borrower(s)financial status. 563 564 information rt Issulno the mequalificatlon.pre-avoroval or appEwl: 565 566 Originating Comp 's Name: 567 568 Company Ad ss: 569 Street address City or Town State Zip Code 570 Compan hone:(_, Fax:(__) 571 572 Loa nginator's name: LO Reg.# Date: 573 574 575 576 Use Recommended by:1AMB;IAR;and MLA Rev 1/24/04 Buyer Initial Buyer Initial Seller Initial Seller Initial D Address 65ZMcl5iIDE STREET, ELGIN, ILLINOIS 60120 -_ — Page 11 RIDER TO REAL ESTATE CONTRACT FOR THE SALE OF 652 McBRIDE STREET,ELGIN,ILLINOIS 60120 This Rider to the real estate contract is made and entered into this 24th day of September, 2014, by and between Robert O. Werrbach Trust(hereinafter referred to as "Seller") and the City of Elgin, Illinois,a municipal corporation(hereinafter referred to as'Buyer"); and WHEREAS, Seller and Buyer are concurrently with the entry into this Rider entering into a real estate contract providing for the sale of 652 McBride Street, Elgin, Illinois 60120 from Seller to Buyer (such property is hereinafter referred to as the "Subject Property" and such contract is hereinafter referred to as the "Subject Contract");and WHEREAS, the parties wish to set forth their further agreement between them regarding the sale of the Subject Property and incorporate this Rider into the Subject Contract. NOW, THEREFORE, for and in consideration of the mutual undertakings in the Subject Contract, the undertakings in this Rider, and other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged,the parties hereto agree as follows: 1. The provisions of Section 40 of the Subject Contract entitled ""AS IS" CONDITION" is and shall be included as part of the Subject Contract it being agreed and understood that the Subject Property is being sold by the Seller to the Buyer in "as is" condition and that Seller will not be making any repairs nor providing any credit for repairs to the Buyer. 2. Notwithstanding anything in the Subject Contract the Buyer agrees to and shall pay for the costs of the title commitment,survey fee and title company fee. 3. The Subject Property is currently occupied by a month-to-moth tenant named Anny Clark. In the event such month-to-month tenancy has not been terminated prior to the closing and the property is not vacant as of the closing, the Seller shall have such month-to- month tenant, Anny Clark, execute the Month-To-Month Lease Agreement between the Buyer and Anny Clark attached hereto as Exhibit A and shall deliver such executed Month-To-Month Lease Agreement to the Buyer prior to or at the closing. IN WITNESS WHEREOF, Seller and Buyer have entered into and executed this Rider to as of the date and year first written above. BUYER: z ER: CITY OF ELGIN D Robert O. Werrbach st 4�Dj By: . C Manager FALegal Dept\Real Estate\Rider-652 McBride-Werrbach Trust-revised.doc MONTH-TO-MONTH LEASE AGREEMENT This Lease Agreement ("Lease") is entered by and between the City of Elgin, an Illinois municipal corporation ("Landlord") and Anny Clark ("Tenant") as of November , 2014. Landlord and Tenant may collectively be referred to as the "Parties". This Lease creates joint and several liabilities in the case of multiple Tenants. The Parties agree as follows: PREMISES: Landlord hereby leases to the Tenant the residence on the property commonly known as 652 McBride, Elgin, Illinois 60120 (such residence is hereinafter referred to as the "Premises"). LEASE TERM: The Lease will start on November , 2014, and will continue as a month-to-month tenancy. To terminate tenancy the Landlord or Tenant must give the other party a written thirty (30) day notice of Lease non-renewal. Notwithstanding the foregoing, this lease will automatically terminate on March 31, 2015. LEASE PAYMENTS: Tenant agrees to pay to Landlord as rent for the Premises the amount of Six Hundred Fifty Dollars ($650.00) each month in advance on the first day of each month at the City of Elgin, 150 Dexter Court, Elgin, Illinois 60120, or at any other address designated by the Landlord. If the Lease Term does not start on the first day of the month or end on the last day of the month,the first and last day's month's rent will be prorated accordingly. LATE CHARGES: Rent is due on the 1St of each month. If any or all of the rent is not received by the 5th of the month, Fifty Dollars ($50.00) per month will be charged as late fees until full rental payment is received. If rent is not received by the 15th of the month, Tenant will be considered in breach of the Lease Agreement and eviction proceedings will be initiated. INSUFFICIENT FUNDS: Tenant agrees to pay the charge of Fifty Dollars $50.00 for each check given by Tenant to Landlord that is returned to Landlord for lack of sufficient funds. SECURITY DEPOSIT: At the signing of this Lease, Tenant shall deposit with Landlord, in trust, a security deposit of Six Hundred Fifty Dollars ($650.00) as security for the performance by Tenant of the terms under this Lease and for any damages caused by Tenant, Tenant's family, agents and visitors to the Premises during the term of this Lease. Landlord may use part or all of the security deposit to repair any damage to the Premises caused by Tenant, Tenant's family, agents and visitors to the Premises. However, Landlord is not just limited to the security deposit amount and Tenant remains liable for any balance. Tenant shall not apply or deduct any portion of any security deposit from the last or any month's rent. Tenant shall not use or apply any such security deposit at any time in lieu of payment of rent. If Tenant breaches any terms or conditions of this Lease, Tenant shall forfeit any deposit, as permitted by law. DEFAULTS: If Tenant fails to perform or fulfill any obligation under this Lease, Tenant shall be in default of this Lease. Subject to any statute ordinance or law to the contrary, Tenant shall have seven (7) days from the date of notice of default by Landlord to cure the default. In the event Tenant does not cure a default, Landlord may at Landlord's option: a) cure such default and the cost of such action may be added to Tenant's financial obligations under this Lease; or b) EXHIBIT A declare Tenant in default of the Lease. In the event of default, Landlord may also, as permitted by law, re-enter the Premises and re-take possession of the Premises. Landlord may, at its option, hold Tenant liable for any difference between the rent that would have been payable under this Lease during the balance of the unexpired term, if this Lease had continued in force and any rent paid by any successive Tenant if the Premises are re-let. In the event Landlord is unable to re-let the Premises during any remaining term of this Lease, after default by Tenant, Landlord may at its option hold Tenant liable for the balance of the unpaid rent under this Lease if this Lease had continued in force. The failure of Tenants or their guests or invitees to comply with any term of this Agreement is ground for termination of the tenancy, with appropriate notice to Tenants and procedures as required by law. QUIET ENJOYMENT: Tenant shall be entitled to quiet enjoyment of the Premises and Landlord will not interfere with that right, as long as Tenant pays the rent in a timely manner and performs all other obligations under this Lease. POSSESSION AND SURRENDER OF PREMISES: Tenant shall be entitled to possession of the Premises as of the commencement of this Lease Agreement. At the expiration of the Lease, Tenant shall peaceably surrender the Premises to the Landlord or Landlord's agent in good condition, as it was at the commencement of the Lease, reasonable wear and tear excepted. USE OF PREMISES: Tenant shall only use the Premises as a residence. The Premises shall not be used to carry on any type of business or trade without prior written consent of the Landlord. Tenant will comply with all laws, rules, ordinances, statutes and orders regarding the use of the Premises. OCCUPANTS: Tenant agrees that only the Tenant may reside on the Premises without prior written consent of the Landlord. CONDITION OF PREMISES: Tenant or Tenant's agent has inspected the Premises, the fixtures, the grounds, building and improvements and acknowledges that the Premises are in good and acceptable condition and are habitable. If at any time during the term of this Lease, in Tenant's opinion, the conditions change, Tenant shall promptly provide reasonable notice to Landlord. ASSIGNMENT AND SUBLEASE: Tenant shall not assign or sublease any interest in this Lease. Any assignment or sublease at Landlord's option, shall terminate this Lease. DANGEROUS MATERIALS: Tenant shall not keep or have on or around the Premises any item of a dangerous, flammable or explosive nature that might unreasonably increase the risk of fire or explosion on or around the Premises or that might be considered hazardous by any responsible insurance company. UTILITIES: Charges for electricity, heat, hot water and water are not included as part of this Lease and shall be paid by the Tenant. Telephone service, cable television and other utilities or services are also not furnished as part of this Lease and shall be paid by the Tenant. 2 PETS: Tenant shall not keep any animals or pets on the Premises. ALTERATIONS AND IMPROVEMENTS: Tenant agrees not to make any improvements or alterations to the Premises without prior written consent of the Landlord. If any alterations, improvements or changes are made to or built on or around the Premises, with the exception of fixtures and personal property that can be removed without damage to the Premises, they shall become the property of Landlord and shall remain at the expiration of the Lease, unless otherwise agreed in writing. DAMAGE TO PREMISES: If the Premises or part of the Premises are damaged or destroyed by fire or other casualty then this Lease shall terminate. MAINTENANCE AND REPAIR: Tenant will, at Tenant's sole expense, keep and maintain the Premises in good, clean and sanitary condition and repair during the term of this Lease and any renewal thereof, Tenant shall be responsible to make all repairs to the Premises, fixtures, appliances and equipment therein that may have been damaged by Tenant's misuse, waste or neglect, or that of the Tenant's family, agents or visitors. Tenant agrees that no painting will be done on or about the Premises without the prior written consent of Landlord. Tenant shall promptly notify Landlord of any damage, defect or destruction of the Premises or in the event of the failure of any of the appliances or equipment. Notwithstanding anything to the contrary contained in this lease, the Landlord shall not be called upon to make any improvements or repairs of any kind to the Premises. In the event improvements or repairs to the Premises become necessary in order to comply with the requirements of any applicable code or ordinance or which otherwise affect the habitability of the Premises, and the Tenant elects not to make such repairs at Tenant's expense, then either party may terminate this Lease upon ten (10) days written notice to the other party. RIGHT OF INSPECTION: Tenant agrees to make the Premises available to Landlord or Landlord's agents for the purposes of inspection, making repairs or improvements, or to supply agreed services or show the Premises to prospective buyers or tenants, or in case of emergency. Except in case of emergency, Landlord shall give Tenant reasonable notice of intent to enter. For these purposes, twenty-four (24) hour notice shall be deemed reasonable. Tenant shall not, without Landlord's prior written consent, add, alter or re-key any locks to the Premises. At all times Landlord shall be provided with a key or keys capable of unlocking all such locks and gaining entry. Tenant further agrees to notify Landlord in writing if Tenant installs any burglar alarm system, including instructions on how to disarm it in case of emergency entry. HOLDOVER: In the event Tenant remains in possession the Premises for any period after the expiration of the Lease Term ("Holdover Period") a new month-to-month tenancy shall be created but with a monthly rent of One Thousand Three Hundred Dollars ($1,300.00), subject to the same terms and conditions of this Lease unless otherwise agreed by the Parties in writing. Such month-to-month tenancy shall be terminable on thirty (30) day notice by either party or on longer notice if required by law. ABANDONMENT: If Tenant abandons the Premises of any personal property during the term of this Lease, Landlord may at its option enter the Premises by any legal means without liability 3 to Tenant and may at Landlord's option terminate the Lease. Abandonment is defined as absence of the Tenants from the Premises for at least 15 consecutive days without notice to Landlord. If Tenant abandons the Premises for more than 15 days and there is not reasonable evidence, other than the presence of the Tenants' personal property, that the Tenant is occupying the unit, Landlord may at Landlord's option terminate this Lease Agreement and regain possession in the manner prescribed by law. Landlord will dispose of all abandoned personal property on the Premises in any manner allowed by law. EXTENDED ABSENCES: In the event Tenant will be away from the Premises for more than 15 consecutive days, Tenant agrees to notify Landlord in writing of such absence. During such absence, Landlord may enter the Premises at times reasonable necessary to maintain the property and inspect for damages and needed repairs. SECURITY: Tenant understands that Landlord does not provide any security alarm system or other security for Tenant or the Premises. In the event any alarm system is provided, Tenant understands that such alarm system is not warranted to be complete in all respects or to be sufficient to protect Tenant on the Premises. Tenant releases Landlord from any loss, damage, claim or injury resulting from the failure of any alarm system, security or from the lack of any alarm system or security. SEVERABILITY: If any part of this Lease shall be held unenforceable for any reason, the remainder of this Agreement shall continue in full force and effect. If any provision of this Lease is deemed invalid or unenforceable by any court of competent jurisdiction, and if limiting such provision would make the provision valid, then such provision shall be deemed to be construed as so limited. INSURANCE: Landlord and Tenant shall each be responsible to maintain appropriate insurance for their respective interests in the Premises and property located on the Premises. Tenant understands that Landlord will not provide any insurance coverage for Tenant's property. Landlord will not be responsible for any loss of Tenant's property, whether by theft, fire, riots, strikes, acts of God or otherwise. Landlord encourages Tenant to obtain renter's insurance or other similar coverage to protect against risk of loss. BINDING EFFECT: The covenants and conditions contained in the Lease shall apply to the Parties and the heirs, legal representatives, successors and permitted assigns of the Parties GOVERNING LAW: This Lease shall be governed by and construed in accordance with the laws of the State of Illinois. ENTIRE AGREEMENT: This Lease constitutes the entire Agreement between the Parties and supersedes any prior understanding or representation of any kind preceding the date of this Agreement. There are no other promises, conditions, understandings or other Agreements, whether oral or written, relating to the subject matter of this Lease. This Lease may be modified in writing and must be signed by both Landlord and Tenant. 4 NOTICE: Any notice required or otherwise given pursuant to this Lease shall be in writing and mailed certified return receipt requested, postage prepaid, or delivered by overnight delivery service, if to Tenant, at the Premise and if to Landlord, at the address for payment of rent. Either party may change such addresses from time to time by providing notice as set forth above. CUMULATIVE RIGHTS: Landlord's and Tenant's rights under this Lease are cumulative and shall not be construed as exclusive of each other unless otherwise required by law. WAIVER: The failure of either Party to enforce any provisions of the Lease shall not be deemed a waiver of limitation of that Party's right to subsequently enforce and compel strict compliance with every provision of this Lease. The acceptance of rent by landlord does not waive Landlord's right to enforce any provisions of this Lease. INDEMNIFICATION: To the extent permitted by law, Tenant will indemnify and hold Landlord and Landlord's property, including the Premises, free and harmless from any liability for losses, claims, injury to or death of any person, including Tenant, or for damage to property arising from Tenant using and occupying the Premises or from the acts or omissions of any person or persons, including Tenant, in or about the Premises with Tenant's express or implied consent except Landlord's act or negligence. LEGAL FEES: In the event that the Tenant violates the terms of the Lease or defaults in the performance of any covenants in the Lease and the Landlord engages an attorney or institutes a legal action, counterclaim, or summary proceeding against Tenants based upon such violation or default, Tenants shall be liable to Landlord for the costs and expenses incurred in enforcing this Lease, including reasonable attorney fees and costs. In the event the Tenants bring any action against the Landlord pursuant to this Lease and the Landlord prevails, the Tenant shall be liable to Landlord for costs and expenses of defending such action, including reasonable attorney fees and costs. ADDITIONAL TERMS AND CONDITIONS DISPLAY OF SIGNS: Landlord or Landlord's agent may display "For Sale" or "For Rent" or "Vacancy" or similar signs on or about the Premises and enter to show the Premises to prospective tenants during the last sixty (60) days of this Lease. Tenant agrees that no signs shall be placed on the Premises without the prior written consent of the Landlord. NOISE: Tenant shall not cause or allow any unreasonably loud noise or activity in the Premises that might disturb the rights, comforts and conveniences of other persons. DWELLING: Tenant is only entitled to occupy the dwelling listed above. [SIGNATURE PAGE FOLLOWS) 5 IN WITNESS THEREOF, the Parties have caused this Lease to be executed on the day and year first above written. LANDLORD: By: Sean R. Stegall, City Manager Date: TENANT: TELEPHONE NUMBERS: By: Home: Anny Clark Cell: Date: Work: FALegal Dept\Agreement\Lease-Month-to-Month-652 McBride-Anny Clark.docx 6