HomeMy WebLinkAboutBuckets Inc-10/7/2013 (2)REAL ESTATE PURCHASE AGREEMENT
(NONRESIDENTIAL)
TO: City of Waterloo, Iowa ("Seller")
FROM: Buckets, Inc. ("Buyer")
Buyer hereby offers to buy, and the Seller by its acceptance agrees to sell, the real property
situated in Waterloo, Black Hawk County, Iowa, legally described as per the abstract of title,
consisting of assessor parcel no(s). 8912-32-102-002; together with any easements and
appurtenant servient estates, but subject to any reasonable easements of record for public utilities
or roads, any zoning restrictions customary restrictive covenants and mineral reservations of
record, if any, herein referred to as the "Property," upon the following terms and conditions:
1. PURCHASE PRICE. The Purchase Price shall be $1.00, which shall be due and payable
in full at closing.
2. POSSESSION AND CLOSING. Possession of the Property shall be delivered to Buyer
at closing. Closing shall occur at City Hall, 715 Mulberry Street, Waterloo, within thirty (30)
days after approval of this Agreement by the Waterloo City Council, subject to satisfaction of
any conditions stated in this Agreement.
3. REAL ESTATE TAXES. The Property is currently exempt from real estate taxes, and
there are no taxes due and owing. Buyer shall pay all real estate taxes that become due and
owing after closing.
4. SPECIAL ASSESSMENTS. Seller shall pay at time of closing all installments of special
assessments which are a lien on the Property as of closing or which can be verified to be owing
as of the closing date but are not yet certified as a lien. Buyer shall pay all other special
assessments or installments.
5. RISK OF LOSS AND INSURANCE. Seller agrees to maintain existing insurance to the
date of closing and shall bear the risk of loss or damage to the Property to the date of closing. In
the event of substantial damage or destruction prior to closing, the Buyer shall have the option to
complete the closing and receive insurance proceeds regardless of the extent of damages or to
declare this Agreement null and void.
6. FIXTURES. Included with the Property shall be all fixtures that integrally belong to, are
specifically adapted to or are a part of the real estate, whether attached or detached. The
following items shall not be included:
7. CONDITION OF PROPERTY. The Property is undeveloped ground. It will be
preserved by the Seller in its present condition until closing. Seller sells the Property "AS IS"
and makes no warranties, expressed or implied, as to the condition of the Property.
Within 30 days after the acceptance of this Agreement, Buyer may, at its sole expense,
have the property inspected by a person or persons of its choice to determine if there are any
environmental or other deficiencies. Seller shall cooperate in providing reasonable access to
Buyer's inspectors. Within this same period, the Buyer may notify the Seller in writing of any
deficiency. The Seller shall immediately notify the Buyer in writing of what steps, if any, the
Seller will take to correct any deficiencies before closing. The Buyer shall then immediately in
writing notify the Seller that (1) such steps are acceptable, in which case this Agreement, as so
modified, shall be binding upon all parties; or (2) that such steps are not acceptable, in which
case this Agreement shall be null and void, and any earnest money shall be returned to Buyer.
8. ABSTRACT AND TITLE. Seller, at its expense, shall obtain from the Black Hawk
County Abstract & Title an abstract of title to the Property continued through a date that is
within thirty (30) days of the closing, and shall deliver it to Buyer's attorney for examination. It
shall show marketable title in Seller in conformity with this Agreement, Iowa law, and title
standards of the Iowa State Bar Association. The Seller shall make every reasonable effort to
promptly perfect the title. If closing is delayed due to Seller's inability to provide marketable
title, this Agreement shall continue in force and effect until either party rescinds the Agreement
after giving ten days' written notice to the other party. The abstract shall become the property of
Buyer when the Purchase Price is paid in full. Seller shall pay the costs of any additional
abstracting and title work due to any act or omission of Seller.
9. SURVEY. Buyer may, at Buyer's expense, have the Property surveyed and certified by a
registered land surveyor prior to closing if a survey is required by law. If the survey shows an
encroachment on the Property or if any improvements located on the Property encroach on lands
of others, the encroachments shall be treated as a title defect.
10. ENVIRONMENTAL MATTERS.
A. Seller warrants to the best of its knowledge and belief that there are no abandoned
wells, solid waste disposal sites, hazardous wastes or substances, or underground storage
tanks located on the Property, the Property does not contain levels of radon gas, asbestos, or
urea -formaldehyde foam insulation which require remediation under current governmental
standards, and Seller has done nothing to contaminate the Property with hazardous wastes or
substances. Seller warrants that the property is not subject to any local, state, or federal
judicial or administrative action, investigation or order, as the case may be, regarding wells,
solid waste disposal sites, hazardous wastes or substances, or underground storage tanks.
Any exceptions to the warranties set forth above are fully described on a separate addendum
attached hereto.
B. Seller hereby represents that, to the best of its knowledge and belief, there is no active
or abandoned septic tank or septic system on the property, except as described here:
C. Buyer may, at Buyer's expense, have the Property inspected further for the existence
of any hazardous materials, substances, or wastes. Seller shall cooperate in providing
reasonable access to Buyer's inspectors and engineers. If hazardous materials, substances, or
wastes are discovered on the Property, Buyer's obligation hereunder shall be contingent upon
the removal of such materials, substances, conditions or wastes or other resolution of the
matter reasonably satisfactory to Buyer. However, in the event Seller is required to expend
any sum in excess of $500 to remove any hazardous materials, substances, conditions or
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wastes, Seller shall have the option to cancel this transaction and refund to Buyer all earnest
money paid and declare this Agreement null and void. The expense of any action necessary
to remove or otherwise make safe any hazardous material, substances, conditions or waste
shall be paid by Seller, subject to Seller's right to cancel this transaction as provided above.
11. DEED. Upon payment of the Purchase Price, Seller shall convey the Property to Buyer
by special warranty deed, free and clear of all liens, restrictions, and encumbrances arising by or
through Seller, except as provided in this Agreement. General warranties of the title shall extend
to the time of delivery of the deed excepting liens and encumbrances suffered or permitted by
Buyer.
12. JOINT TENANCY IN PROCEEDS AND IN REAL ESTATE. N/A.
13. JOINDER BY SELLER'S SPOUSE. N/A.
14. STATEMENT AS TO LIENS. If Buyer intends to assume or take subject to a lien on the
Property, Seller shall furnish Buyer with a written statement prior to closing from the holder of
such lien, showing the correct balance due.
15. USE OF PURCHASE PRICE. At time of settlement, funds of the Purchase Price may be
used to pay taxes and other liens and to acquire outstanding interests, if any, of others.
16. 1031 EXCHANGE. N/A.
17. APPROVAL OF COURT. N/A.
18. REMEDIES OF THE PARTIES.
A. If Buyer fail to timely perform this Agreement, Seller may forfeit it as provided in the
Iowa Code (Chapter 656), and all payments made shall be forfeited; or, at Seller's option,
upon thirty days' written notice of intention to accelerate the payment of the entire balance
because of Buyer's default (during which thirty days the default is not corrected), Seller may
declare the entire balance immediately due and payable. Thereafter this Agreement may be
foreclosed in equity and the Court may appoint a receiver.
B. If Seller fails to timely perform this Agreement, Buyer has the right to have all
payments made returned to it, or Buyer may require specific performance by Seller.
C. Buyer and Seller are also entitled to utilize any and all other remedies or actions at
law or in equity available to them, and the prevailing parties shall also be entitled to obtain
judgment for costs and attorney fees.
19. NOTICE. Any notice under this Agreement shall be in writing and be deemed served
when it is delivered by personal delivery or mailed by certified mail, addressed to the parties at
the addresses given below.
Seller: City of Waterloo
715 Mulberry Street
3
Waterloo, IA 50703
Attn: Community Planning & Development Director
Buyer: Buckets, Inc.
324 Duryea Street
Waterloo, IA 50701
Attn: President
20. GENERAL PROVISIONS. In the performance of each part of this Agreement, time
shall be of the essence. Failure to promptly assert rights herein shall not, however, be a waiver
of such rights or a waiver of any existing or subsequent default. This Agreement shall apply to
and bind the successors in interest of the parties. This Agreement contains the entire agreement
of the parties and shall not be amended except by a written instrument duly signed by Seller and
Buyer. Paragraph headings are for convenience of reference and shall not limit or affect the
meaning of this Agreement. Words and phrases herein shall be construed as in the singular or
plural number, and as masculine, feminine or neuter gender according to the context.
21. NO REAL ESTATE AGENT OR BROKER. Neither party has used the service of a real
estate agent or broker in connection with this transaction.
22. ADDITIONAL PROVISIONS. (a) This Agreement is expressly subject to approval by
the city council of Seller.
23. ENTIRE AGREEMENT. This Agreement represents the entire agreement between the
parties, superseding all prior or contemporaneous understandings, negotiations, discussions, or
agreements between the parties with respect to the subject matter hereof.
24. ACCEPTANCE. When accepted, this Agreement shall become a binding contract. If not
accepted by Seller on or before October l , 2013, this Agreement shall be null and void.
Dated October 7 , 2013
BUYER
Buckets, Inc.
By:
Kevin L. Hennem, President
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Accepted by Seller OG*i h r , 2013
SELLER
City of Waterloo, Iowa
By:
Attest:
Suzy Scha$es, City Clerk