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HomeMy WebLinkAbout09-270 a . L T 1i Resolution No. 09-270 RESOLUTION RATIFYING THE EXECUTION OF A REAL ESTATE CONTRACT (485 E. Chicago Street-NSP Property) BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF ELGIN,ILLINOIS,that a Real Estate Sales Contract on behalf of the City of Elgin by Sean R. Stegall, City Manager, with Fannie Mae, for the purchase of property commonly known as 485 E. Chicago Street, Elgin, for $89,900 be and is hereby authorized, approved and ratified,a copy of such contract is attached hereto and made a part hereof by reference. s/ Ed Schock Ed Schock, Mayor Presented: December 16, 2009 Adopted: December 16, 2009 Omnibus Vote: Yeas: 7 Nays: 0 Attest: s/Diane Robertson Diane Robertson, City Clerk 14 MULTI-BOARD RESIDENTIAL REAL ESTATE CONTRACT 4.0 !, �` it EA1TC i OPPO41VN!TY 11.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) _ , 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 36' x 98' commonly known as: 485 E. Chicago Street, Elgin., Illinois 60120 12 Address City State Zip 13 Kane 06-13-402-004 14 County Unit#(if applicable) Permanent Index Number(s)of Real Estate 15 16 If Condo/Coop/Townhome Parking is Included: #of space(s) ;identified as Space(s) # ; 17 (check type) ❑ deeded space; ❑ limited common element; Li 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:[Check or enumerate applicable items] 23 _Refrigerator _All Tacked Down Carpeting _Fireplace Screen(s)/Door(s)/Grate(s) Central Air Conditioning 24 —Microwave —All Window Treatments&Hardware Fireplace Gas Logs _Electronic or Media Air Filter 25 Microwave _Built-in or Attached Shelving Existing Storms&Screens Central Humidifier —Dishwasher Dishwasher _Smoke Detector(s) _Security System(s)(owned) Sump Pump(s) 27 _ Garbage Disposal Ceiling Fan(s) Intercom System _Water Softener(owned) 28 _ _Trash Compactor _TV Antenna System —Central Vac&Equipment _Outdoor Shed 29 Washer _Window Air Conditioner(s) _Electronic Garage Door Opener(s) _Attached Gas Grill _ 30 _Dryer _Planted Vegetation with all Transmitter(s) _Light Fixtures,as they exist 31 _Satellite Dish _Outdoor Play sets _Invisible Fence System,Collar(s)and Box _Home Warranty $ 32 Other items included: 33 Items NOT included: 34 Seller warrants to Buyer that all fixtures, 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$ 89,900 shall be paid as follows: LAtial 40 - . •.. - .- - . �✓ - • -- ,1- • 1 - . • • • , . 41 to bo increased to a total of$ by , 20----,4:114-gai4444-4444mmofra444-t1+e. 42 ' -- •- - - - - "-- • • " • ••_ . . • - • 43n.,T�reies The balance of the Purchase Price, as adjusted by prorations, 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 February 15 , 2010 , 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 Initial "Alf 1.41 Buyer Initial _Seller Initial Seller Initial Address 485 E. Chicago Street Pa ore 1 54 7. RESIDENTIAL REAL ESTATE AND LEAD-BASED PAINT DISCLOSURES: If applicable, prior to signing 55 this Contract, Buyer[check on_e]❑ has;® has not received a completed Illinois Residential Real Property Disclosure 56 Report;[check one];IA has;® has not received the EPA Pamphlet, "Protect Your Family From Lead in Your Home"; 57 [check one]❑ has'ef 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. Seller represents that as of the Date of Acceptance Homeowner/Condominium 63 Association(s)fees are $ A per l(/IN (and,if applicable,fees for a Master/Umbrella Association are 64 $ Ni f Q per 1 . 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 67 100 % 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 serve written notice upon Seller or Seller's attorney of any defects 84 disclosed by the inspection(s) which are unacceptable to Buyer, together with a copy of the pertinent page(s) 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 written 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 systems), 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 obta.1.1. . - • gage commitment 101 (except for matters of title and r - • • . . . • wi m :uyer's control) on or before , 20 102 . ;. . • '! '! _ - Buyer Initial uyer Initial Seller Initial Seller Initial Address 485 E. icago Street Page 2 103 lean e€ - or suoh lesser-amount as Buyer elects to take, plus private mortgage insuransg-PMI , • 104 required. The interest rate (initial rate, if applicable) shall not exceed % per annum, amortized over not le an 105 years. Buyer shall pay loan origination fee and/or discount points not to exceed °A. of the •.. amount. 106 Buyer shall pay the cost of application, usual and customary processing fees and closing costs ch. •.-d by lender. (If 107 FHA/VA, complete Paragraph 35.) (If closing cost credit, complete Paragraph 33.) Buye all make written loan 108 application within five (5) Business Days after the Date of Acceptance. Failure to . : o shall constitute an act of 109 Default under this Contract. If Buyer, having applied for the loan specifies . I ove, is unable to obtain such loan 110 commitment and serves written notice to Seller within the time spec' 1, this Contract shall be null and void. If 111 written notice of inability to obtain such loan commitment is erved within the time specified, Buyer shall be 112 deemed to have waived this contingency and this Contr. • shall 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 • red the financing conditions of this paragraph if Buyer obtains a loan 115 commitment in accordance with the t- s of this paragraph even though the loan is conditioned on the sale and/or 116 closing of Buyer's existing rea - ate. If Seller at Seller's option and expense, within thirty (30) days after Buyer's 117 notice, procures for Buy- •ch commitment or notifies Buyer that Seller will accept a purchase money mortgage upon 118 the same terms, t - 'ontract shall remain in full force and effect. In such event, Seller shall notify Buyer within five(5) 119 Business D. after Buyer's notice of Seller's election to provide or obtain such financing, and Buyer shall furnish to 120 Selle ender all requested information and shall sign all papers necessary to obtain the mortgage commitment and to 121 • oac the loan. 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 11 (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. 137 139 contained in this paragraph,which may be contrary to other terms of this Contract,shall supersede any conflicti.. -rms. 140 (a) Title when conveyed shall be good and merchantable, subject to terms, provisions, covenants .•: onditions of 141 the Declaration of Condominium/Covenants, Conditions and Restrictions and all amen. s;public and utility 142 easements including any easements established by or implied from the Declarai' o Condominium/Covenants, 143 Conditions and Restrictions or amendments thereto;party wall rights . • .t reements; 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 Condominiu n '.venants, Conditions and Restrictions. 146 (b) Seller shall be responsible for all regular as =- ents due and levied prior to Closing and for all special 147 assessments confirmed prior to the Dat- : ' cceptance. 148 (c) Buyer has, within five (5) Bus'•- Nays from the Date of Acceptance, the right to demand from Seller items as 149 stipulated by the Illine'. ondominium Property Act, if applicable, and Seller shall diligently apply for same. 150 This Contract - -• .sect 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 •ndominium/Covenants, Conditions and Restrictions within the time established by the Declaration of 153 -- - • • - - : . • -- - . Buyer Initial ,Buyer Initial Seller Initial Seller Initial Address 485 E. Chicago Street _ 4 Page 3 154 ••- _ _ • = = - - - 155 (d) In the event the documents and information provided by Seller to Buyer disclose that the existing in • :•-ments 156 are in violation of existing rules, regulations or other restrictions or that the terms .•• •n•itions contained 157 within the documents would unreasonably restrict Buyer's use of the • - - or would result in increased 158 financial obligations unacceptable to Buyer in connection • •• mg the Real Estate, then Buyer may 159 declare this Contract null and void by giving S• . rrtten notice within five (5) Business Days after the 160 receipt of the documents and infor required by Paragraph 14 (c), listing those deficiencies which 161 are unacceptable to Buye itten 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) Sell- . . 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 title 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. 186 187 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, furnish 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 corners 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 4t4 Buyer Initial Buyer Initial Seller Initial Seller Initial Address 485 E. Chicago Street Page 4 205 19. DAMAGE TO REAL ESTATE PRIOR TO CLOSING: 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 funds, 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] isI❑ is not[ a proposed or pending unconfirmed special assessment affecting the Real 227 Estate not payable by Seller after date of Closing. 228 2. The Real Estate[check one]is I❑ is not V 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 are 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 later), Buyer 234 shall be deemed to have waived such option and this Contract shall remain in full force and effect. Seller 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 er Initial Seller Initial Seller Initial Address 4 5 E. Chic'apo Street 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 Notice 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 first 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 tx .tka prevailing P c y-ix litigation aliall be cntiticd to eellccl• 280 -r- - --. . •• - • - - ' • • _ - • 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 Court by the filing of an action in the nature of interpleader. 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: The Rider to 294 Real Estate Contract for the Sale of 485 E. Chicago Street, Elgin. IL 60120 is hereby. 295 incorporated into and made a part of this Contract. 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 oneJ;❑ has,0 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) [check oneJ!❑ •is!❑ •is not subject to a mortgage contingency. Buyer Initial ` $rlryer Initial Seller Initial Seller Initial Address 485 E. Chicago Street Page 6 306 (b) [check one] ❑_ is:❑_ is not subject to a real estate sale contingency. 307 (c) [check one] 0 1U is is not subject to a real estate closing contingency. 308 (3) Buyer [check one];U has ❑ 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 oneJ 312 (a) ❑ 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: 316 (b) ❑ 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. If written 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.If 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 shall be deemed to have waived all contingencies 324 contained in this Paragraph 31,and this Contract shall remain in full force 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 , 20 . 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 full force 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 null 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) Seller's notice to Buyer (commonly referred to as a "kick-out" notice) shall 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 shall 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 mail 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_41 ,.,.[/Buyer Initial Seller Initial Seller Initial _ Address 485 E. Chicago Street 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$ 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 COST 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 $ 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 earned 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)charged 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 date. 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 (MIP) shall be paid by Buyer and [check onejF shall shall not be added to the mortgage 390 loan amount Seller agrees to pay additional miscellaneous expenses required by lender not to exceed $200.00. Required FHA or 391 VA amendments shall be attached to this Contract. It is expressly agreed that notwithstanding any other provisions of this 392 Contract,Buyer shall not be obligated to complete the purchase of the property described herein or to incur any penalty by forfeiture 393 of earnest money deposits or otherwise unless Buyer has been given, in accordance with HUD/FHA requirements, a written 394 statement by the Federal Housing Commissioner setting forth the appraised value of the property (excluding Closing costs) of not 395 less than$ . 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 Department of Housing and Urban Development will insure/guarantee. HUD and the mortgagee do not warrant the 398 value nor the condition of the property. 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 ,20 in the amount of$ . 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 SEPTIC/SANITARY INSPECTIONS: Seller shall obtain at Seller's expense a well 408 water 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 report(s)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 9t4 tyA'3uyer Initial Seller Initial Seller Initial Address 485 E. Chicago Street 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 (10) 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 39.POST-CLOSING POSSESSION: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 , [choose one! [❑ one percent (1%) of the Purchase Price or IU the sum of $ 432 to be paid by Escrowee 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 Landlord/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 shall 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 reveals that the condition of the improvements, fixtures or personal property to be conveyed or transferred is 447 unacceptable to Buyer and Buyer so notifies Seller within five(5) Business Days after the Date of Acceptance,this Contract 448 shall be null and void.Failure of Buyer 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. 451 452 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 , Buyer's 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. If written notice is 460 not served within the time specified, this provision shall be deemed waived by the Parties and this Contract shall remain in 461 full force and effect. 462 463 / 43. MISCELLANEOUS PROVISIONS: Buyer's and Seller's obligations are contingent upon the Parties 464 entering into a separate written agreement consistent with the terms and conditions set forth herein, and with such additional terms 465 as either Party may deem necessary,providing for one or more of the following: (check applicable box(es)) 466 ❑ Assumption of Seller's Mortgage U New Construction 467 ❑ Commercial/Investment/Starker Exchange ❑ Vacant Land 468 ❑ Cooperative Apartment ❑ Articles of Agreement for Deed or Purchase Money Mortgage Buyer Initial Buyer Initial_ Seller Initial Seller Initial Address 485 E. Chicago Street Page 9 469 THIS DOCUMENT WILL BECOME A LEGALLY BINDING CONTRACT WHEN SIGNED BY ALL 470 PARTIES AND DELIVERED TO THE PARTIES OR THEIR AGENTS. 471 472 The Parties represent that text of this form has not been altered and is identical to the official Multi-Board Residential 473 Real Estate ontract 4.0. 474 I 1 2009 20 't s' 475 Da - •r DATE OF ACCEPTANCE 476 :.""...1 % /l2 -`i►'� 477 ignature Its i y .nag- Seller Signature 478 479 Buyer Signature Seller Signature 480 City of Elgin 481 Print Buyer(s)Name(s) [Required] Print Seller(s)Name(s) [Required] 482 150 Dexter Court Address 483 Address 484 Elgin IL 60120 485 City State Zip City State Zip 486 (847) 931-5655 487 Phone E-mail Phone E-mail 488 FOR INFORMATION ONLY 489 N/A 490 Selling Office MLS # Listing Office MLS # 491 N/A 492 Buyer's Designated Agent MLS # Seller's Designated Agent MLS # 493 N/A 494 Phone Fax Phone Fax 495 N/ 496 E-mail E-mail 497 Christopher J. Beck beck c@cityofelgin.org 498 Buyer's Attorney E-mail Seller's Attorney E-mail 499 (847) 931-5657 (847) 931-5665 500 Phone Fax Phone Fax 501 N/A 502 Mortgage Company Phone Homeowner's/Condo Association(if any) Phone 503 N/A 504 Loan Officer Fax Management Co./Other Contact Phone 505 506 ©2006, Illinois Real Estate Lawyers Association. All rights reserved. Unauthorized duplication or alteration of this form or any 507 portion thereof is prohibited. Official form available at www.reallaw.org(web site of Illinois Real Estate Lawyers Association). 508 509 Approved by the following organizations February 2006. 510 Illinois Real Estate Lawyers Association, Aurora Tri-County Association of REALTORS®,Chicago Association of REALTORS®, 511 DuPage County Bar Association,Kane County Bar Association,Lake County Bar Association,McHenry County Association of 512 REALTORS®,North Shore-Barrington Association of REALTORS®,Northwest Suburban Bar Association,Oak Park Board of 513 REALTORS®,REALTOR®Association of the Fox Valley,REALTOR®Association of the Northwest Chicagoland,REALTOR® 514 Association of West/South Suburban Chicagoland,Three Rivers Association of REALTORS®,West Towns Board of REALTORS® 515 516 517 518 519 520 Seller Rejection: This offer was presented to Seller on 20 at : IAM,PM 521 and rejected on 20 at : IAMiPM 522 (Seller initials) (Seller initials) 523 PDF Version 4.0.2 - 5/2/06 Buyer Initial 4 IA. Buyer Initial Seller Initial Seller Initial Address 485 E. Chicago Street Page 10 Loan Status Disclosure 524 525 BerFowers/Btryer-s Nc meeaj: 526 Current Address: 527 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 I[] Prequalification,WITHOUT credit review*: 537 The borrowers/buyers listed on this form have INQUIRED with our firm about financing to pur •ase a home and the 538 documentation they provided regarding income and down payment has been reviewed by t loan originator listed 539 below. It is the opinion of said loan originator that the borrowers/buyers should/would qua or the terms listed in the 540 attached letter. 541 542 in-Prequalification,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 revie •d by the loan originator listed below. After 545 careful review, it is the opinion of said loan originator that the borrowers/b ers should/would qualify for the terms listed 546 in the attached letter. 547 This Prequalification is]WITH or [] WITHOUT Automated Unde iriting approval. 548 549 1[] Pre-Approval*: 550 The borrowers/buyers have APPLIED with our firm for a mo,gage loan 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 I[] Approval*: 556 The borrowers/buyers have APPLIED with •dr firm for a mortgage loan to purchase a home and the loan application 557 has been reviewed by the actual lender's derwriter 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 - ual commitment letter for specific conditions/requirements of the lender. All approvals 562 are subject to satisfactory ap• aisal, title, and no material change to borrower(s)financial status. 563 564 Information on mortgaq- ompany issuing the prequalification, pre-approval or approval: 565 566 Originating Compaq 's Name: 567 568 Company Ad. -ss: 569 Street address City or Town State Zip Code 570 Compan •hone:( ) Fax:( 571 572 Loa •riginator's name: LO Reg. # Date: 573 574 Loon O inotor'o oignaturc: 575 576 Use Recommended by: IAMB; IAR; and IRELA Rev 1/24/04 Buyer Initial Bzryer Initial_ Seller Initial Seller Initial Address 4 E. Chicago Street Page 11 • RIDER TO REAL ESTATE CONTRACT FOR THE SALE OF 485 E. CHICAGO STREET, ELGIN, ILLINOIS 60120 This Rider to the real estate contract is made and entered into by and between and the City of Elgin, Illinois, a municipal corporation (hereinafter referred to as the "Buyer") and F2gn►e. dla., , as Owner of Record (hereinafter referred to as the "Seller"). WHEREAS, Buyer and Seller are concurrently with the entry into this Rider entering into a real estate contract providing for the sale of 485 E. Chicago Street, Elgin, Illinois 60120, from Seller to Buyer (such property and all improvements thereon is hereinafter referred to as the "Real Estate" and such contract is hereinafter referred to as the "Subject Contract"); and, WHEREAS, the parties wish to set forth their further agreements between them regarding the sale of the Real Estate 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. Time is of the essence of the Subject Contract. 2. The Subject Contract is expressly subject to and contingent upon approval of the Subject Contract by the City Council of the City of Elgin. 3. The Subject Contract is expressly subject to and contingent upon an appraisal of the Real Estate finding that the final negotiated Purchase Price for the Real Estate meets the discount requirements of the Neighborhood Stabilization Program (NSP) administered through the United States Department of Housing and Urban Development (HUD). Pursuant to HUD regulations in effect as of the Date of Offer, the Real Estate must be purchased at a discount of at least one percent (1%) of the current market-appraised value of the Real Estate. 4. The Subject Contract is expressly subject to and contingent upon (1) the foreclosure proceedings on the Real Estate having been completed, (2) the Real Estate being vacant and unoccupied for a minimum of ninety (90) days prior to the Date of Offer, and (3) the Real Estate remaining vacant and unoccupied through the Closing. Seller shall complete and execute the attached Seller's Occupancy Certification and return such executed certification with the executed contract documents. 5. The Subject Contract is expressly subject to and contingent upon the satisfactory completion of an environmental review of the Real Estate that meets the requirements set forth in 24 CFR Part § 58. 6. If any of the conditions and/or contingencies contained in this Rider are not met or satisfied, then, upon written notice thereof from the Buyer to the Seller, the Subject Contract shall be null and void, without liability to either Buyer or Seller. • 7. The provisions of Section 40 of the Subject Contract entitled "`AS IS' CONDITION" are and shall be included as part of the Subject Contract, it being agreed and understood that the Real Estate is being sold by the Seller to the Buyer in "as is" condition and that the Seller will not be making any repairs or providing any credit for repairs to the Buyer. 8. Venue for the resolution of any disputes or the enforcement of any rights arising out of or in connection with the Subject Contract or this Rider shall be in the Circuit Court of Kane County, Illinois. 9. This Rider is incorporated into and made part of the Subject Contract. In the event of any conflict between the terms of this Rider and the terms of the Subject Contract, the terms of this Rider shall control. IN WITNESS WHEREOF, Seller and Buyer have entered into and executed this Rider to as of the dates entered below their signatures. BUYER: SELLER: CITY OF ELGIN ¢. jUl.&L OWNER OF RECORD B -'i%// By: City Manage, Its: DATED: t` Z S^ , 2009 DATED: , 2009 F:\Legal Dept\Real Estate\NSP\485 E Chicago Street\Rider-485 E Chicago Street.docx - 2 - REO #' C08J744 REAL ESTATE PURCHASE ADDENDUM This Addendum is to be made part of,and incorporated into, the Real Estate Purchase Contract dated November 25 ,20 09 (the"Contract"), between Fannie Mae ("Seller") and City of Elgin, an Illinois Municipal Corporation ("Purchaser") for the property and improvements located at the following address: 4 85 E. Chicago St. Elgin, IL 60120 ("Property"). The Seller and the Purchaser agree as follows: 1. Verbal Acknowledeement: The essential terms of the purchase and sale of the Property have been verbally accepted by the Seller on or before December 4 , 20 09 (the "Verbal Acknowledgement Date") with a sales price of$ 8 9, 900 . 00 . Notwithstanding such verbal acknowledgement, the Purchaser acknowledges and agrees that the Contract and this Addendum (together shall be referred to as the "Agreement")are subject to approval by the Seller's Management and must be signed by all parties in order to be binding. if applicable, upon execution, escrow will be opened by both parties immediately following the Seller's acceptance of this Agreement with a mutually acceptable escrow agent. The Purchaser's earnest money deposit of$ 0 is to be placed in a trust account acceptable to the Seller within 24 hours of the Seller's acceptance. This Agreement signed by the Purchaser and reflecting the terms verbally accepted by the Seller must be received by the Seller within five (5) calendar days of the Verbal Acknowledgement Date. If the Seller does not receive the signed Agreement by such date, this Agreement shall be null and void. In addition, this Agreement shall be null and void if the signed Agreement is not received by the Seller before the Seller accepts a competing offer, or gives verbal notice of revocation either to the Purchaser, the Purchaser's agent or attorney, or the listing agent. As used in this paragraph, the term "received by the Seller" means actual receipt by the Seller of the Purchaser's written acceptance of these documents by the Seller's listing agent. The Purchaser shall present proof,satisfactory to the Seller, of the Purchaser's prequalification for a mortgage loan in an amount and under terms sufficient for the Purchaser to perform its obligations under this Agreement. The prequalification shall include but is not limited to,a certification of prequalification or a mortgage loan commitment from a mortgage lender, a satisfactory credit report and/or proof of funds sufficient to meet the Purchaser's obligations under this Agreement. The Purchaser's submission of proof of prequalification is a condition precedent to the Seller's acceptance. The Seller may require the Purchaser to obtain, at no cost to the Purchaser, loan prequalification from a Seller approved third party lender. Notwithstanding any Seller required prequalification, the Purchaser acknowledges that Purchaser is free to obtain financing from any source. 2. Tinie of the Essence: Closine Date: (a) it is agreed that time is of the essence with respect to all dates specified in this Agreement and any addenda, riders or amendments thereto. This means that all deadlines are intended to be strict and absolute. (b) The closing shall take place on or before January 25 , 20 10 , or within five (5) days of final loan approval by the lender, whichever is earlier, unless the closing date is extended in writing signed by the Seller and the Purchaser or extended by the Seller under the terms of this Agreement. The closing shall be held in the offices of the Seller's attorney or agent,or at a place so designated and approved by the Seller, unless otherwise required by applicable law. If the closing does not occur by the date specified in this Section 2 of the Addendum, or in any extension, this Agreement is automatically terminated and the Seller shall retain any earnest money deposit as liquidated damages. XS�j (c) in--the•ever ie.Sel.l.er-agi:ees to t-he-P-m chaser's request-for a wi,itten-e- tension-of-this-Agreerr}ent;the-Purser agfees-te-pttyte-dte-Seller-e-per-diem-of-a-0 --•—th-reuglt-and-including.xhe.cl osing..date spe-• • r r . e-spedn e wru xtension agieeauent t e Seller may_r:etairi_the_earriest-money-deposit-and-the_accr-ued-per-diem-payment-as-l-iquidated- damag . PURCHASER(initials) 7 REO# C08J744 SELLER(Initials) Pb 1 NPDC Form 001(7/17/2007)Letter Size O 3. Financing: This Agreement (check one): ( ) is, ( x ) is not, contingent on the Purchaser obtaining financing for the purchase of the Property. If this Agreement is contingent on financing, the type of financing shall be the following (check one): Fannie Mae Special REO Financing from a participating lender Conventional FHA VA x Other(specify: Cash ) All Financing. (This paragraph applies to all financing, whether or not it is Fannie Mae Special REO or other financing.) If this Agreement is contingent on financing, the Purchaser shall apply for a loan in the amount of $ with a term of years, at prevailing rates, terms and conditions. The Purchaser shall complete and submit to a mortgage lender,of the Purchaser's choice, an application for a mortgage loan containing the terms set forth in this paragraph within five (5)calendar days of the Verbal Acknowledgement Date, and shall use diligent efforts to obtain a mortgage loan commitment by , 20 . If, despite the Purchaser's diligent efforts, the Purchaser cannot obtain a mortgage loan commitment by the specified date, then either the Purchaser or the Seller may terminate this Agreement by giving written notice to the other party. The Purchaser's notice must include a copy of the loan application, proof of the application date, and a copy of the denial letter from the prospective lender. In the event of a proper termination of this Agreement under this paragraph, the earnest money deposit shall be returned to the Purchaser and the parties shall have no further obligation to each other under this Agreement. The Purchaser agrees to cooperate and comply with all requests for documents and information from the Purchaser's chosen lender during the loan application process. Failure of the Purchaser to comply with such requests from the lender that results in the denial of the mortgage loan will be a breach of this Agreement and the Seller shall be entitled to retain any earnest money deposited by the Purchaser. (a) The Purchaser is aware that the price and terms of this transaction were negotiated on the basis of the type of financing selected by the Purchaser. Any change as to the terms or a change in the Purchaser's lender after negotiations have been completed will require renegotiation of all terms of this Agreement. (b) The Purchaser shall ensure that the lender selected by the Purchaser to finance the sale shall fund the settlement agent as of the date of settlement. The Purchaser shall further ensure that the selected lender shall provide all lender prepared closing documentation to the settlement agent no later than 48 hours prior to settlement. Any delays in closing and funding as a result of the Purchaser's selected lender shall be the responsibility of the Purchaser. 4. Use of Property: The Purchaser (check one):( ) does, ( x ) does not, intend to use and occupy the Property as Purchaser's primary residence. 5. Inspections: (a) On or before 10 calendar days from the Verbal Acknowledgement Date, the Purchaser shall inspect the Property or obtain for its own use, benefit and reliance, inspections and/or reports on the condition of the Property, or be deemed to have waived such inspection and any objections to the condition of the Property and to have accepted the Property. The Purchaser shall keep the Property free and clear of liens and indemnify and hold the Seller harmless from all liability claims, demands, damages, and costs related to the Purchaser's inspection and the Purchaser shall repair all damages arising from or caused by the inspections. The Purchaser shall not directly or indirectly cause any inspections to be made by any government building or zoning inspectors or government employees without the prior written consent of the Seller, unless required by law, in which case, the Purchaser shall provide reasonable notice to the Seller prior to any such inspection. If the Seller has winterized this Property and the Purchaser desires to have the Property inspected, listing agent will have the Property dewinterized prior to inspection and rewinterized after inspection. The Purchaser agrees to pay this expense in advance to the listing agent. The amount paid under this provision shall be nonrefundable. Within five (5) calendar days of receipt of any inspection report prepared by or for the Purchaser, but not later than 10 days from the Verbal Acknowledgment Date, whichever first occurs, the Purchaser will provide written notice to the Seller of any items disapproved. The Purchaser's silence shall be deemed as acceptance of the condition of the Property. The Purchaser shall provide to the Seller, at no cost, upon request by the Seller, complete copies of all inspection reports upon which the Purchaser's disapproval of the condition of the property is based. In no event shall the Seller be obligated to make any repairs or replacements that may be indicated in the Purchaser's inspection reports. The Seller may, at its sole discretion, make such repairs to the Property under 4 / the terms described in Section 7 of this Addendum. If the Seller elects not to repair the Property, the Purchaser 7 (}(\ PURCHASER(Initials) "' ' REO# C08J744 SELLER(Initials) Pv 2 NPDC Form 001(7/17!2007)Letter Size D may cancel this Agreement and receive all earnest money deposited. If the Seller elects to make any such repairs to the Property,the Seller shall notify the Purchaser after completion of the repairs and the Purchaser shall have 5 days from the date of notice,to inspect the repairs and notify the Seller of any items disapproved. The Purchaser's silence shall be deemed as acceptance. In situations that are applicable, a structural, electrical, mechanical or termite inspection report may have been prepared for the benefit of the Seller. Upon request, the Purchaser will be allowed to review the report to obtain the same information and knowledge the Seller has about the condition of the Property but the Purchaser acknowledges that the inspection reports were prepared for the sole use and benefit of the Seller. The Purchaser will not rely upon any such inspection reports obtained by the Seller in making a decision to purchase the Property. (b) If the Property is a condominium or planned unit development or co-operative, unless otherwise required by law, the Purchaser, at the Purchaser's own expense, is responsible for obtaining and reviewing the covenants, conditions and restrictions and bylaws of the condominium, or planned unit development or cooperative within (10)days of execution of this Agreement by both parties pursuant to paragraph I hereof. The Seller agrees to use reasonable efforts, as determined at the Seller's sole discretion, to assist the Purchaser in obtaining a copy of the covenants, conditions and restrictions and bylaws. The Purchaser will be deemed to have accepted the covenants, conditions and restrictions and by laws if the Purchaser does not notify the Seller in wilting, within 15 days of execution of this Agreement, of the Purchaser's objection to the covenants, conditions and restrictions and/or bylaws. 6. CONDITION OF PROPERTY: THE PURCHASER UNDERSTANDS THAT THE SELLER ACQUIRED THE PROPERTY BY FORECLOSURE, DEED-IN-LIEU OF FORECLOSURE, FORFEITURE, TAX SALE, RIGHT OF EMINENT DOMAIN OR SIMILAR PROCESS AND CONSEQUENTLY, THE SELLER HAS LITTLE OR NO DIRECT KNOWLEDGE CONCERNING THE CONDITION OF THE PROPERTY. AS A MATERIAL PART OF THE CONSIDERATION TO BE RECEIVED BY THE SELLER UNDER THIS AGREEMENT AS NEGOTIATED AND AGREED TO BY THE PURCHASER AND THE SELLER, THE PURCHASER ACKNOWLEDGES AND AGREES TO ACCEPT THE PROPERTY IN "AS IS" CONDITION AT THE TIME OF CLOSING, INCLUDING, WITHOUT LIMITATION, ANY HIDDEN DEFECTS OR ENVIRONMENTAL CONDITIONS AFFECTING THE PROPERTY, WHETHER KNOWN OR UNKNOWN WHETHER SUCH DEFECTS OR CONDITIONS WERE DISCOVERABLE THROUGH INSPECTION OR NOT. THE PURCHASER ACKNOWLEDGES THAT THE SELLER, ITS AGENTS AND REPRESENTATIVES HAVE NOT MADE AND THE SELLER SPECIFICALLY NEGATES AND DISCLAIMS ANY REPRESENTATIONS, WARRANTIES, PROMISES, COVENANTS, AGREEMENTS OR GUARANTEES,IMPLIED OR EXPRESS, ORAL OR WRITTEN IN RESPECT TO: (A) THE PHYSICAL CONDITION OR ANY OTHER ASPECT OF THE PROPERTY INCLUDING THE STRUCTURAL INTEGRITY OR THE QUALITY OR CHARACTER OF MATERIALS USED IN CONSTRUCTION OF ANY IMPROVEMENTS, AVAILABILITY AND QUANTITY OR QUALITY OF WATER, STABILITY OF THE SOIL, SUSCEPTIBILITY TO LANDSLIDE OR FLOODING, SUFFICIENCY OF DRAINAGE, WATER LEAKS,WATER DAMAGE, MOLD OR ANY OTHER MATTER AFFECTING THE STABILITY, INTEGRITY, OR CONDITION OF THE PROPERTY OR IMPROVEMENTS; (B) THE CONFORMITY OF THE PROPERTY OR THE IMPROVEMENTS TO ANY ZONING, LAND USE OR BUILDING CODE REQUIREMENTS OR COMPLIANCE WITH ANY LAWS, RULES, ORDINANCES OR REGULATIONS OF ANY FEDERAL, STATE OR LOCAL GOVERNMENTAL AUTHORITY, OR THE GRANTING OF ANY REQUIRED PERMITS OR APPROVALS, IF ANY, OF ANY GOVERNMENTAL BODIES WHICH HAD JURISDICTION OVER THE CONSTRUCTION OF THE ORIGINAL STRUCTURE, ANY IMPROVEMENTS AND/OR ANY REMODELING OF THE STRUCTURE; AND (C) THE HABITABILITY, MERCHANTABILITY, MARKETABILITY, PROFITABILITY OR FITNESS FOR A PARTICULAR PURPOSE OF THE PROPERTY OR IMPROVEMENTS INCLUDING REDHIBITORY VICES AND DEFECTS, APPARENT, NON APPARENT OR LATENT, WHICH NOW EXIST OR WHICH MAY HEREAFTER EXIST AND WHICH IF KNOWN TO THE PURCHASER, l/ WOULD CAUSE THE PURCHASER TO REFUSE TO PURCHASE THE PROPERTY. o PURCHASER(Initials) 93'461 REO# C08J744 SELLER(Initials) Pg. 3 NPDC Form 001(7/17/2007)Leiter Size Mold, mildew, spores and/or other microscopic organisms and/or allergens (collectively referred to in this Agreement as "Mold") are environmental conditions that are common in residential properties and may affect the Property. Mold, in some forms, has been reported to be toxic and to cause serious physical injuries, including but not limited to,allergic and/or respiratory reactions or other problems, particularly in persons with immune system problems, young children and/or elderly persons. Mold has also been reported to cause extensive damage to personal and real property. Mold may have been removed or covered in the course of any cleaning or repairing of the Property. The Purchaser acknowledges that, if Seller,or any of Seller's employees, contractors,or agents cleaned or repaired the Property or remediated Mold contamination, that Seller does not in any way warrant the cleaning, repairs or remediation. Purchaser accepts full responsibility for all hazards that may result from the presence of Mold in or around the Property. The Purchaser is satisfied with the condition of the Property notwithstanding the past or present existence of Mold in or around the Property and Purchaser has not, in any way, relied upon any representations of Seller,Seller's employees, officers,directors, contractors,or agents concerning the past or present existence of Mold in or around the property. In the event the Property is affected by an environmental hazard, as determined by the Seller, either party may terminate this Agreement. in the event the Seller decides to sell the Property to the Purchaser and the Purchaser agrees to purchase the Property, the Purchaser agrees to execute a general release at closing, in a form acceptable to Seller, releasing the Seller from any liability related to the environmental hazard or conditions of the Property. In the event the Purchaser elects not to execute the disclosure and release, at the Sellers discretion, this Agreement is automatically terminated. In the event the Seller has received official notice that the Property is in violation of building codes or similar laws or regulations, the Seller may terminate this Agreement or delay the date of closing or the Purchaser may terminate this Agreement. In the event this Agreement is terminated by either Purchaser or Seller pursuant to this Section 6 of this Addendum, any earnest money deposit will be returned to the Purchaser. If there is an enforcement proceeding arising from allegations of such violations before an enforcement board, special master, court or similar enforcement body, and neither the Purchaser nor the Seller terminate this Agreement,the Purchaser agrees (a)to accept the Property subject to the violations, (b) to be responsible for compliance with the applicable code and with orders issued in any code enforcement proceeding and(c) to resolve the deficiencies as soon as possible after the closing. The Purchaser agrees to execute any and all documents necessary or required for closing by any agency with jurisdiction over the Property. The Purchaser further agrees to indemnify the Seller from any and all claims or liability arising from the Purchaser's breach of this Section 6 of this Addendum. The closing of this sale shall constitute acknowledgement by the Purchaser that Purchaser had the opportunity to retain an independent, qualified professional to inspect the Property and that the condition of the Property is acceptable to the Purchaser. The Purchaser agrees that the Seller shall have no liability for any claims or losses the Purchaser or the Purchaser's successors or assigns may incur as a result of construction or other defects which may now or hereafter exist with respect to the Property. The Seller is exempt from filing a disclosure statement as the Property was acquired through foreclosure,deed in lieu of foreclosure, forfeiture, tax sale, eminent domain or similar process. For Alaska transactions, the Seller and the Purchaser have previously executed a waiver of the disclosure provisions of Alaska statutes. 7. Repairs : All treatments for wood infesting organisms and other repairs will be completed by a vendor approved by the Seller, and will be subject to the Seller's satisfaction only. If the Seller has agreed to pay for treatment of wood infesting organisms, the Seller shall treat only active infestation. Neither the Purchaser, nor its representatives,shall enter upon the Property to snake any repairs and/or treatments prior to closing without the prior written consent of the Seller. To the extent that the Purchaser or its representatives makes repairs and/or treatments to the Property prior to closing, the Purchaser hereby agrees to release and indemnify the Seller from and against any and all claims related in any way to the repairs and/or treatments and further agrees to execute a release and indemnification in a form acceptable to the Seller prior to the commencement of any such repairs or treatments. The Purchaser acknowledges that all repairs and treatments are done for the benefit of the Seller and not for the benefit of the Purchaser and that the Purchaser has inspected or has been given the opportunity to inspect repairs and treatments. Any repairs or treatments made or caused to be made by the Seller shall be completed prior to the closing. Under no circumstances shall the Seller be required to make any repairs or treatments after the Closing Date. The Purchaser acknowledges that closing on this transaction shall be deemed the Purchaser's reaffirmation that the Purchaser is satisfied with the condition of the Property and with all repairs and treatments to the Property and waives all claims related to such condition and to the quality of the repairs or treatments to the Property. Any repairs or treatments shall be performed for functional purposes only and exact restoration of appearance or cosmetic items following any repairs or treatments shall not be required. The Seller shall not be obligated to obtain or provide to the Purchaser any receipts for repairs, or treatments, written statements indicating dates or types of repairs and/or treatments or copies of such receipts or statements nor any other documentation regarding any repairs and treatments to the Property. THE SELLER DOES NOT WARRANT OR GUARANTEE ANY WORK, REPAIRS OR TREATMENTS TO THE PROPERTY. PURCHASER(initials) SCJ REO# C08J744 SELLER(initials) NPC Farm 001(7117/2007)Letter Size Pg. 4 8. Occupancy Status of Property: The Purchaser acknowledges that neither the Seller, nor its representatives, agents or assigns, has made any warranties or representations, implied or expressed, relating to the existence of any tenants or occupants at the Property unless otherwise noted in Section 38 of this Addendum. The Purchaser acknowledges that closing on this transaction shall be deemed the Purchaser's reaffirmation that neither the Seller, nor its representatives, agents or assigns, has made any warranties or representations, implied or expressed, relating to the existence of any tenants or occupants at the Property unless otherwise noted in Section 38 of this Addendum. The Seller, its representatives, agents or assigns, shall not be responsible for evicting or relocating any tenants, occupants or personal property at the Property prior to or subsequent to closing unless otherwise noted in Section 38 of this Addendum. The Purchaser further acknowledges that, to the best of the Purchaser's knowledge, the Seller is not holding any security deposits from former or current tenants and has no information as to such security deposits as may have been paid by the former or current tenants to anyone and agrees that no sums representing such tenant security deposits shall be transferred to the Purchaser as part of this transaction. The Purchaser further agrees to assume all responsibility and liability for the refund of such security deposits to the tenants pursuant to the provisions of applicable laws and regulations. All rents, due and payable and collected from tenants for the month in which closing occurs will be prorated according to the provisions of Section 10 of this Addendum. The Purchaser acknowledges that this Property may be subject to the provisions of local rent control ordinances and regulations. The Purchaser agrees that upon the closing all eviction proceedings and other duties and responsibilities of a property owner and landlord, including but not limited to, those proceedings required for compliance with such local rent control ordinances and regulations,will be the Purchaser's sole responsibility. 9. Personal Property: Items of personal property, including but not limited to window coverings, appliances, manufactured homes, mobile homes, vehicles, spas, antennas, satellite dishes and garage door openers, now or hereafter located on the Property are not included in this sale or the purchase price unless the personal property is specifically described and referenced in Section 38 of this Addendum. Any personal property at or on the Property may be subject to claims by third parties and, therefore, may be removed from the Property prior to or after the Closing Date, The Seller makes no representation or warranty as to the condition of any personal property,title thereto,or whether any personal property is encumbered by any liens. The Purchaser assumes responsibility for any personal property remaining on the Property at the time of closing. I0. Closing Costs and Adjustments: (a) The Purchaser and the Seller agree to prorate the following expenses as of closing and funding: municipal water and sewer charges, utility charges, real estate taxes and assessments, common area charges, condominium or planned unit development or similar community assessments, co-operative fees, maintenance fees, and rents, if any. in determining prorations, the funding date shall be allocated to the Purchaser. Payment of special assessment district bonds and assessments, and payment of homeowner's association or special assessments shall be paid current and prorated between the Purchaser and the Seller as of closing date with payments not yet due and owing to be assumed by the Purchaser without credit toward purchase price. The Property taxes shall be prorated based on an estimate or actual taxes from the previous year on the Property. All prorations shall be based upon a 30-day month and all such prorations shall be final. The Seller shall not be responsible for any amounts due, paid or to be paid after closing, including but not limited to, any taxes, penalties or interest assessed or due as a result of retroactive, postponed or additional taxes resulting from any change in use of, or construction on, or improvement to the Property, or an adjustment in the appraised value of the Property. In the event the Seller has paid any taxes, special assessments or other fees and there is a refund of any such taxes, assessments or fees after closing, and the Purchaser as current owner of the Property receives the payment, the Purchaser will immediately submit the refund to the Seller. If the Property is heated by or has storage tanks for fuel oil, liquefied petroleum gases or similar fuels, the Purchaser will buy the fuel in the tank at closing at the current price as calculated by the supplier. (b) Regardless of local custom, requirements or practice, the Purchaser shall pay any and all realty transfer taxes due as a result of the conveyance of the Property. The Purchaser shall pay all other costs and fees incurred in the transfer of the Property,including cost of any survey,title policy,escrow or closing fees and lender required fees,except as expressly assumed by the Seller in Section 38 of this Addendum. (c) if Fannie Mae is the owner and the Seller hereunder, the Purchaser acknowledges that Fannie Mae is a congressionally chartered corporation and is exempt from realty transfer taxes pursuant to 12 U.S.C. I 723a(c)(2). (d) The Seller shall pay the real estate commission per the listing agreement between the Seller and the Seller's listing broker, 11. Delivery of Funds: Regardless of local custom, requirements, or practice, upon delivery of the deed by the Seller to the Purchaser, the Purchaser shall deliver all funds clue the Seller from the sale in the form of cash, bank check, certified check or wire transfer. An attorney's trust fund check shall not be sufficient to satisfy this provision unless the bank holding the account on which the trust fund check is drawn certifies the trust fund check. PURCHASER(Initials) REO# C08J744 SELLER(Initials) Pg. 5 mmNPDC Form (7117/2007)Letter Sae 12.' Certificate of Occupancy: If the Property is located in a jurisdiction that requires a certificate of occupancy, smoke detector certification, septic certification or any similar certification or permit("Certificate of Occupancy")or any form of improvement or repair to the Property to obtain such Certificate of Occupancy necessary for the Property to be occupied, the Purchaser understands that the Seller requires the Certificate of Occupancy to be obtained by the Purchaser at the Purchaser's sole cost and expense. The Purchaser shall make application for all Certificates of Occupancy within ten (10) days of the Verbal Acknowledgment Date. The Purchaser shall not have the right to delay the closing due to the Purchaser's failure or inability to obtain any required Certificate of Occupancy. Failure of the Purchaser to obtain and furnish the Certificate of Occupancy shall be a material breach of the Agreement. Neither the Purchaser,nor its representatives,shall enter upon the Property to make any repairs and/or treatments prior to closing without the prior written consent of the Seller. To the extent that the Purchaser or its representatives makes repairs and/or treatments to the Property prior to closing, the Purchaser hereby agrees to release and indemnify the Seller from and against any and all claims related in any way to the repairs and/or treatments and further agrees to execute a release and indemnification in a form acceptable to the Seller prior to the commencement of any such repairs or treatments. 13. Delivery of Possession of Property: The Seller shall deliver possession of the Property to the Purchaser at closing and funding of sale. The delivery of possession shall be subject to the rights of any tenants or parties in possession per Section 8 of this Addendum. if the Purchaser alters the Property or causes the Property to be altered in any way and/or occupies the Property or allows any other person to occupy the Property prior to closing and funding without the prior written consent of the Seller, such event shall constitute a breach by the Purchaser under this Agreement and the Seller may terminate this Agreement and the Purchaser shall be liable to the Seller for damages caused by any such alteration or occupation of the Property prior to closing and funding and waives any and all claims for damages or compensations for improvements made by the Purchaser to the Property including,but not limited to, any claims for unjust enrichment. 14, Deed: The deed to be delivered at closing shall be a deed that covenants that grantor grants only that title which grantor may have and that grantor will only defend title against persons claiming by, through, or under the grantor, but not otherwise(which deed may be known as a Special Warranty,Limited Warranty, Quit Claim or Bargain and Sale Deed). Any reference to the term "Deed"or"Special Warranty Deed" herein shall be construed to refer to such form of deed. x (check if applicable)Seller's deed shall include the following deed restriction: GRANTEE HEREIN SHALL BE PROHIBITED FROM CONVEYING CAPTIONED PROPERTY TO A BONAFiDE PURCHASER FOR VALUE FOR A SALES PRICE OF GREATER THAN $ 107, 88 0. 00 FOR A PERIOD OF 3 MONTH(S) FROM THE DATE OF THIS DEED. GRANTEE SHALL ALSO BE PROHIBITED FROM ENCUMBERING SUBJECT PROPERTY WITH A SECURITY INTEREST IN THE PRINCIPAL_ AMOUNT OF GREATER THAN $ 107, 880. 00 FOR A PERIOD OF 3 MONTH(S) FROM THE DATE OF THIS DEED. THESE RESTRICTIONS SHALL RUN WiTH THE LAND AND ARE NOT PERSONAL TO GRANTEE. THiS RESTRICTION SHALL TERMINATE IMMEDIATELY UPON CONVEYANCE AT ANY FORECLOSURE SALE RELATED TO A MORTGAGE OR DEED OF TRUST. 15. Defects in Title: If the Purchaser raises an objection to the Seller's title to the Property, which, if valid, would make title to the Property uninsurable, the Seller shall have the right unilaterally to terminate this Agreement by giving written notice of the termination to the Purchaser. However, if the Seller is able to correct the problem through reasonable efforts, as the Seller determines, at its sole and absolute discretion, prior to the closing date set forth in this Agreement, including any written extensions, or if title insurance is available from a reputable title insurance company at regular rates containing affirmative coverage for the title objections, then this Agreement shall remain in full force and the Purchaser shall perform pursuant to the terms set in this Agreement. The Seller is not obligated to remove any exception or to bring any action or proceeding or bear any expense in order to convey title to the Property or to make the title marketable and/or insurable but any attempt by the Seller to remove such title exceptions shall not impose an obligation upon the Seller to remove those exceptions. The Purchaser acknowledges that the Seller's title to the Property may be subject to court approval of foreclosure or to mortgagor's right of redemption. In the event the Seller is not able to (a) make the title insurable or correct any problem or (b) obtain title insurance from a reputable title insurance company,all as provided herein,The Purchaser may terminate this Agreement and any earnest money deposit will be returned to the Purchaser as the Purchaser's sole remedy at law or equity. 16. Representations and Warranties: The Purchaser represents and warrants to the Seller the following: (a) The Purchaser is purchasing the Property solely in reliance on its own investigation and inspection of the Property and not on any information, representation or warranty provided or to be provided by the Seller, its servicers, representatives,brokers, employees,agents or assigns; PURCHASER(Initials) S'111'`7" REO# C08J744 SELLER(Initials) Pg. 6 NPDC Form 001(7!17/2007)Letter Sze • • (b) Neither the Seller, nor its servicers, employees, representatives, brokers, agents or assigns, has made any representations or warranties, implied or expressed, relating to the condition of the Property or the contents thereof,except as expressly set forth in Section 38 of this Addendum; (c) The Purchaser has not relied on any representation or warranty from the Seller regarding the nature, quality or workmanship of any repairs made by the Seller;and (d) The Purchaser will not occupy or cause or permit others to occupy the Property prior to closing and funding and, unless and until any necessary Certificate of Occupancy has been obtained from the appropriate governmental entity,will not occupy or cause or permit others to occupy the Property until after closing; (e) The Purchaser has x has not previously purchased a Fannie Mae owned property. 17. WAIVERS: AS A MATERIAL PART OF THE CONSIDERATION TO BE RECEIVED BY THE SELLER UNDER THIS AGREEMENT AS NEGOTIATED AND AGREED TO BY THE PURCHASER AND THE SELLER, THE PURCHASER WAIVES THE FOLLOWING: (A) ALL RIGHTS TO FILE AND MAINTAIN AN ACTION AGAINST THE SELLER FOR SPECIFIC PERFORMANCE; (B) RIGHT TO RECORD A LIS PENDENS AGAINST THE PROPERTY OR TO RECORD THIS AGREEMENT OR A MEMORANDUM THEREOF IN THE REAL PROPERTY RECORDS; (C) RIGHT TO INVOKE ANY OTHER EQUITABLE REMEDY THAT MAY BE AVAILABLE THAT IF INVOKED, WOULD PREVENT THE SELLER FROM CONVEYING THE PROPERTY TO A THIRD PARTY PURCHASER; (D) ANY AND ALL CLAIMS ARISING FROM THE ADJUSTMENTS OR PRORATIONS OR ERRORS IN CALCULATING THE ADJUSTMENTS OR PRORATIONS THAT ARE OR MAY BE DISCOVERED AFTER CLOSING; (E) ANY CLAIMS FOR FAILURE OF CONSIDERATION AND/OR MISTAKE OF FACT AS SUCH CLAIMS RELATE TO THE PURCHASE OF THE PROPERTY OR ENTERING INTO OR EXECUTION OF OR CLOSING UNDER THIS AGREEMENT; (F) ANY REMEDY OF ANY KIND, INCLUDING BUT NOT LIMITED TO RESCISSION OF THIS AGREEMENT, OTHER THAN AS EXPRESSLY PROVIDED IN SECTION 19 OF THIS ADDENDUM, TO WHICH THE PURCHASER MIGHT OTHERWISE BE ENTITLED AT LAW OR EQUITY WHETHER BASED ON MUTUAL MISTAKE OF FACT OR LAW OR OTHERWISE; (G) TRIAL BY JURY, EXCEPT AS PROHIBITED BY LAW, IN ANY LITIGATION ARISING FROM OR CONNECTED WITH OR RELATED TO THIS AGREEMENT; (H) ANY CLAIMS OR LOSSES THE PURCHASER MAY INCUR AS A RESULT OF CONSTRUCTION ON, REPAIR TO, OR TREATMENT OF THE PROPERTY, OR OTHER DEFECTS, WHICH MAY NOW OR HEREAFTER EXIST WITH RESPECT TO THE PROPERTY; (I) ANY CLAIMS OR LOSSES RELATED TO ENVIRONMENTAL CONDITIONS AFFECTING THE PROPERTY INCLUDING, BUT NOT LIMITED TO, MOLD, LEAD PAINT, FUEL OIL, ALLERGENS, OR OTHER TOXIC SUBSTANCES OF ANY KIND; (J) ANY RIGHT TO AVOID THIS SALE OR REDUCE THE PRICE OR HOLD THE SELLER RESPONSIBLE FOR DAMAGES ON ACCOUNT OF THE CONDITION OF THE PROPERTY, LACK OF SUITABILITY AND FITNESS, OR REDHIBITORY VICES AND DEFECTS, APPARENT, NONAPPARENT OR LATENT,DISCOVERABLE OR NONDISCOVERABLE; AND (K) ANY CLAIM ARISING FROM ENCROACHMENTS, EASEMENTS, SHORTAGES IN AREA OR ANY OTHER MATTER WHICH WOULD BE DISCLOSED OR REVEALED BY A SURVEY OR INSPECTION OF THE PROPERTY OR SEARCH OF PUBLIC RECORDS. • PURCHASER(Initials) J' REO# C08J744 SELLER(Initials) Pg. 7 NPDC Form 001(7/17(2007)Letter Size References to the "Seller" in this Section 17 of the Addendum shall include the Seller and the Seller's servicers, representatives,agents,brokers,employees, or assigns. In the event that the Purchaser breaches any of the warranties described or contemplated under this Section 17 of this Addendum and a court finds that such action is without merit, the Purchaser shall pay all reasonable attorneys fee and cost incurred by the Seller in defending such action, and the Purchaser shall pay Five Thousand Dollars ($5,000) as liquidated damages for breach of this Section 17 of the Addendum, which amount shall be in addition to any liquidated damages held or covered by the Seller pursuant to Section 19 of this Addendum. 18. Conditions to the Seller's Performance: The Seller shall have the right, at the Seller's sole discretion, to extend the closing date or to terminate this Agreement if (a) full payment of any mortgage insurance claim related to the loan previously secured by the Property is not confirmed prior to the closing date or the mortgage insurance company exercises its right to acquire title to the Property; (b) the Seller determines that it is unable to convey good and marketable title to the Property insurable by a reputable title insurance company at regular rates; (c) the Seller has requested that the servicing lender, or any other party,repurchase the loan previously secured by the Property; (d) a third party with rights related to the sale of the property does not approve the sale terms; (e) fill payment of any property,fire or hazard insurance claim is not confirmed prior to the closing or date set forth herein for closing; (0 any third party, whether tenant, homeowner's association, or otherwise, exercises rights under a right of first refusal to purchase the Property; (g) the Purchaser is the former mortgagor of the Property whose interest was foreclosed, or is related to or affiliated in any way with the former mortgagor,and the Purchaser has not disclosed this fact to the Seller prior to the Seller's acceptance of this Agreement. Such failure to disclose shall constitute default under this Agreement,entitling the Seller to exercise any of its rights and remedies, including,without limitation,retaining the earnest money deposit; or (h) the Seller, at the Seller's sole discretion, determines that the sale of the Property to the Purchaser or any related transactions are in ally way associated with illegal activity of any kind. In the event the Seller elects to terminate this Agreement as a result of(a), (b), (c), (d), (e), (f) or(Ii)above, the Seller shall return the Purchaser's earnest money deposit and the parties shall have no further obligation under this Agreement except as to any provision that survives termination pursuant to Section 24 of this Addendum. 19. Remedies for Default: (a) in the event of the Purchaser's default, material breach or material misrepresentation of any fact under the terms of this Agreement,the Seller, at its option, may retain the earnest money deposit and any other funds then paid by the Purchaser as liquidated damages and/or invoke any other remedy expressly set out in this Agreement and the Seller is automatically released from the obligation to sell the Property to the Purchaser and neither the Seller nor its representatives,agents, attorneys, successors, or assigns shall be liable to the Purchaser for any damages of any kind as a result of the Seller's failure to sell and convey the Property. (b) In the event of the Seller's default or material breach under the terms of this Agreement or if the Seller terminates this Agreement as provided under the provisions of this Agreement, the Purchaser shall be entitled to the return of the earnest money deposit as Purchaser's sole and exclusive remedy at law and/or equity. Any reference to a return of the Purchaser's earnest money deposit contained in the Agreement shall mean a return of the earnest money deposit less any escrow cancellation fees applicable to the Purchaser under this Agreement and less fees and costs payable for services and products provided during escrow at the Purchaser's request. The Purchaser waives any claims that the Property is unique and the Purchaser acknowledges that a return of its earnest money deposit can adequately and fairly compensate the Purchaser. Upon return of the earnest money deposit to the Purchaser,this Agreement shall be terminated, and the Purchaser and the Seller shall have no further liability, no further obligation,and no further responsibility each to the other and the Purchaser and the Seller shall be released from any further obligation each to the other in connection with this Agreement. PURCHASER(initials) 5,.=Zlj REO# C08J744 SELLER(Initials) NPDC Form 001(7/17/2007)Letter Size Pg. • (c) The Purchaser agrees that the Seller shall not be liable to the Purchaser for any special, consequential or punitive damages whatsoever, whether in contract, tort (including negligence and strict liability) or any other legal or equitable principle, including but not limited to any cost or expense incurred by the Purchaser in selling or surrendering a lease on a prior residence, obtaining other living accommodations, moving, storage or relocation expenses or any other such expense or cost arising from or related to this Agreement or a breach of this Agreement. (d) Any consent by any party to, or waiver of, a breach by the other, whether express or implied,shall not constitute consent to,waiver of,or excuse for any different or subsequent breach. (e) In the event either party elects to exercise its remedies as described in this Section 19 of this Addendum and this Agreement is terminated, the parties shall have no further obligation under this Agreement except as to any provision that survives the termination of this Agreement pursuant to Section 24 of this Addendum. 20. Indemnification:The Purchaser agrees to indemnify and fully protect, defend, and hold the Seller, its officers, directors, employees, shareholders, servicers, representatives, agents, attorneys, tenants, brokers, successors or assigns harmless from and against any and all claims, costs, liens, loss, damages, attorney's fees and expenses of every kind and nature that may be sustained by or made against the Seller, its officers, directors, employees, shareholders, servicers, representatives, agents,attorneys, tenants,brokers,successors or assigns, resulting from or arising out of: (a) inspections or repairs made by the Purchaser or its agents,employees, contractors, successors or assigns; (b) the imposition of any fine or penalty imposed by any governmental entity resulting from the Purchaser's failure to timely obtain any Certificate of Occupancy or to comply with equivalent laws and regulations; (c) claims for amounts due and owed by the Seller for taxes, homeowner association dues or assessment or any other items prorated at closing under Section 10 of this Addendum, including any penalty or interest and other charges, arising from the proration of such amounts for which the Purchaser received a credit at closing under Section 10 of this Addendum;and (d) the Purchaser's or the Purchaser's tenants, agents or representatives use and/or occupancy of the Property prior to closing and/or issuance of required certificate of occupancy. 21. Risk of Loss: The Purchaser assumes all risk of loss related to damage to the Property. In the event of fire, destruction or other casualty loss to the Property after the Seller's acceptance of this Agreement and prior to closing and funding, the Seller may, at its sole discretion, repair or restore the Property, or the Seller may terminate this Agreement. If the Seller elects to repair or restore the Property, then the Seller may, at its sole discretion, limit the amount to be expended. If the Seller elects to repair or restore the Property,the Purchaser's sole and exclusive remedy shall be either to acquire the Property in its then condition at the Purchase Price with no reduction thereof by reason of such loss or terminate this Agreement and receive a refund of any earnest money deposit. 22. Eminent Domain: In the event that the Seller's interest in the Property, or any part thereof, shall have been taken by eminent domain or shall be in the process of being taken on or before the closing date, either party may terminate this Agreement and the earnest money deposit shall be returned to the Purchaser and neither party shall have any further rights or liabilities hereunder except as provided in Section 24 of this Addendum. 23. Keys: The Purchaser understands that if the Seller is not in possession of keys, including but not limited to, mailbox keys, recreation area keys, gate cards, or automatic garage remote controls, then the cost of obtaining the same will be the responsibility of the Purchaser. The Purchaser also understands that if the Property includes an alarm system, the Seller cannot provide the access code and/or key and that the Purchaser is responsible for any costs associated with the alarm and/or changing the access code or obtaining keys. If the Property is presently on a Master Key System, the Seller will re-key the exterior doors to the Property prior to closing and funding at the Purchaser's expense. The Purchaser authorizes and instructs escrow holder to charge the account of the Purchaser at closing for the rekey. 24. Survival: Delivery of the deed to the Property to the Purchaser by the Seller shall be deemed to be full performance and discharge of all of the Seller's obligations under this Agreement. Notwithstanding anything to the contrary in this Agreement, the provisions of Sections 6, 7, 8, 10, 12, 13, 16, 17, 19, 20, 21, 22, and 24 of this Addendum, as well as any other provision which contemplates performance or observance subsequent to any termination or expiration of this Agreement, shall survive the closing, funding and the delivery of the deed and/or termination of this Agreement by any party and continue in full force and effect. X PURCHASER(Initials) �s.9'- • REO# C08J744 SELLER(Initials) Pg. 9 NPDC Form 001(7/1712007)Letter Sze • 25. Further Assurances: The Purchaser agrees to execute and deliver to the Seller at closing, or otherwise as requested by the Seller, documents including Fannie Mae's NPDC Form 4 (Waiver and Release Regarding Property Condition at Closing),NPDC Form 5(Tax Proration Agreement)or documents that are substantially the same, and to take such other action as reasonably may be necessary to further the purpose of this Agreement. Copies of referenced documents are available from the Seller's listing agent upon request by the Purchaser. 26. Severability: The invalidity, illegality or enforceability of any provision of this Agreement shall not affect the validity or enforceability of any other provision of this Agreement,all of which shall remain in full force and effect. 27. Assignment of Agreement: The Purchaser shall not assign this Agreement without the express written consent of the Seller. The Seller may assign this Agreement at its sole discretion without prior notice to, or consent of,the Purchaser. 28. EFFECT OF ADDENDUM: THIS REAL ESTATE PURCHASE ADDENDUM AMENDS AND SUPPLEMENTS THE CONTRACT AND, IF APPLICABLE, ESCROW INSTRUCTIONS. IN THE EVENT THERE IS ANY CONFLICT BETWEEN THiS ADDENDUM AND THE CONTRACT OR ESCROW INSTRUCTIONS OR NOTICE OR OTHER DOCUMENTS ATTACHED AND MADE A PART OF THiS AGREEMENT, THE TERMS OF THIS ADDENDUM TAKE PRECEDENCE AND SHALL PREVAIL EXCEPT AS OTHERWISE PROVIDED BY LAW. The undersigned, if executing this Agreement on behalf of a Seller and/or the Purchaser that is a corporation,partnership, trust or other entity, represents and warrants that he/she is authorized by that entity to enter into this Agreement and bind the entity to perform all duties and obligations stated in this Agreement. 29. Entire Agreement: This Agreement, including the disclosure of information on lead based paint and/or lead based paint hazards or the Seller Disclosure and Release Addendum or other disclosure forms or notices required by law, constitutes the entire agreement between the Purchaser and the Seller concerning the subject matter hereof and supersedes all previous communications, understandings, representations, warranties, covenants or agreements, either written or oral and there are no oral or other written agreements between the Purchaser and the Seller. NO ORAL PROMISES, REPRESENTATIONS (EXPRESSED OR IMPLIED), WARRANTIES OR AGREEMENTS MADE BY THE SELLER AND/OR BROKERS OR ANY PERSON ACTING ON BEHALF OF THE SELLER SHALL BE DEEMED VALID OR BiNDING UPON THE SELLER UNLESS EXPRESSLY INCLUDED IN THIS AGREEMENT. All negotiations are merged into this Agreement. The Seller is not obligated by any other written or verbal statements made by the Seller,the Seller's representatives, or any real estate licensee. 30. Modification:No provision, term or clause of this Agreement shall be revised, modified, amended or waived except by an instrument in writing signed by the Purchaser and the Seller. 31. Rights of Others: This Agreement does not create any rights, claims or benefits inuring to any person or entity, other than Seller's successors and/or assigns, that is not a party to this Agreement, nor does it create or establish any third party beneficiary to this Agreement. 32. Counterparts: This Agreement may be executed in any number of counterparts and each such counterpart shall be deemed to be an original, but all of which, when taken together, shall constitute one agreement. 33. Headings: The titles to the sections and headings of various paragraphs of this Agreement are placed for convenience of reference only and in case of conflict,the text of this Agreement, rather than such titles or headings shall control. 34. Gender: Unless the context otherwise requires, singular nouns and pronouns, when used herein, shall be deemed to include the plural of such nouns or pronouns and pronouns of one gender shall be deemed to include the equivalent pronoun of the other gender. 35. Force Majeure: Except as provided in Section 21 to the Addendum, no party shall be responsible for delays or failure of performance resulting from acts of God, riots, acts of war, epidemics, power failures, earthquakes or other disasters, providing such delay or failure of performance could not have been prevented by reasonable precautions and cannot reasonably be circumvented by such party through use of alternate sources,workaround plans or other means. 36. Attorney Review: The Purchaser acknowledges that Purchaser has had the opportunity to consult with its legal counsel regarding this Agreement and that accordingly the terms of this Agreement are not to be construed against any party because that party drafted this Agreement or construed in favor of any Party because that Party failed to understand the legal effect of the provisions of this Agreement. PURCHASER(initials) S • �' REO# C08J744 SELLER(Initials) Pg 10 NPDC Form 001(7/1712007)Letter Size r ' 37. Notices: Any notices required to be given under this Agreement shall be deemed to have been delivered when actually received in the case of hand or overnight delivery, or five(5) days after mailing by first class mail, postage paid, or by fax with confirmation of transmission to the numbers below. All notices to the Seller will be deemed sent or delivered to the Seller when sent or delivered to Seller's listing broker or agent or Seller's attorney, at the address or fax number shown below. All notices to the Purchaser shall be deemed sent or delivered when sent or delivered to the Purchaser or the Purchaser's attorney or agent at the address or fax number shown below. 38. Additional Terms or Conditions: PURCHASER(Initials) •t REO# C08J744 SELLER(Initials) Pg 11 NPDC Farm 001(7/17/2007)Lester Size 4 IN WITNESS WHEREOF,the Purchaser and the Seller have entered into this Agreement as of the date first set forth above. PURCHASER(S): SELLER: Signature: effa• eteret I I FANNIE MAE: y Date: 1 Z- TC - -2-t7oy J x J FANNIE MAE as Agent and Attorney in Fact C--`-�•t off- "'"1--LSIP"1,`-) Print Name: \. SE�►..� � SZ E �. ►`L for A Address: LS-co Y Z l <AP OL-2-C) By: Telephone: V tt1 - q,3 L- Sto �► Date: Fax: € -{.`) -ek,3.l �5ro Oc1.5"" Signature: Date: Print Name: Address: Telephone: Fax: PURCHASER(Initials) REO# CO8.1744 SELLER(initials) NPOC Form 001(7/17/007)Feuer size Pg. 12 y r, PURCHASER'S AGENT: SELLER'S AGENT: Brokerage Firm: Brokerage Firm: Tanis Group LLC Cenutry 21 Pro Team Purchaser's Agent Name: Seller's Agent Name: Georqiana Sinnett Steve Butler Address: 122 W. Main St . 2nd Floor Address: 12 932 S. LaGrange Rd. West Dundee, IL 60118 Palos Park, IL 60464 Telephone: 847-533-6912 Telephone: 708-361-0800 Fax: 866-641-2192 Fax: 708-361-9618 Email Address: george@tanisgroupllc.com Email Address: SteveButler@ilreo.net PURCHASER'S ATTORNEY: SELLER'S ATTORNEY: Name: Christopher J. Beck Name: Address: Address: beck c@cityofelgin.orq Telephone: 847-931-5657 Telephone: Fax: 847-931-5665 Fax: ‘4 PURCHASER(Initials) S REO 4 C0RJ744 SELLER(Initials) NPDC Form 001(707/2007)Letter Size Pg. 13