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HomeMy WebLinkAboutL&H Farms - Exchange Agreement, RE Assignment - 3/9/2020Please return this copy to: City Clerk & Finance Dept. 715 Mulberry St. Waterloo, IA 50703 EXCHANGE AGREEMENT THIS EXCHANGE AGREEMENT is entered into this day of March, 2020, by and between the City of Waterloo, Iowa, a municipal corporation ("City"), and L & H Farms, Ltd., an Iowa general partnership ("LHF"). WHEREAS, City has offered to purchase approximately 149.06 acres more or less of Black Hawk County agricultural land described on the attached Exhibit "A" (hereinafter "Farm Land") for the sum of $1,696,636.60 on or before March 17, 2020, if LHF will agree to accept a conveyance of the Farm Land in exchange for 47.17 acres of development land located at the intersection of U.S. Highway 20 and Ansborough Avenue; and WHEREAS, LHF is the owner of 47.17 acres of real property located at the southeast corner of the intersection of U.S. Highway 20 and Ansborough Avenue described on the attached Exhibit "B" and depicted on the aerial photograph on attached Exhibit "C" (hereinafter "Development Land"); and WHEREAS, LHF is willing to convey the Development Land to City in exchange for the Farm Land so as to qualify the transaction for the non -recognition of gain under Internal Revenue Code Sec. 1031 (such exchange being hereafter referred to as the "Exchange"). NOW, THEREFORE, in consideration of the mutual covenants herein contained and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties agree as follows: Section 1. Construction and Interpretation. This Agreement shall be carried out, governed by, and construed in accordance with the laws of Iowa and, to the extent necessary or appropriate, to obtain like -kind exchange treatment under Internal Revenue Code § 1031. The parties agree to execute any additional documents required to allow this transaction to so qualify. LHF agrees to bear any expenses associated with document preparation necessary to qualify the Exchange for like -kind exchange treatment. Section 2. Contingencies. 2.1 City's obligations herein are subject to and conditioned upon the following: A. The City Council for the City of Waterloo, Iowa, adopting a resolution authorizing City to take assignment of the contract to purchase the Farm Land pursuant to the agreed -upon terms and conditions of the assignment set forth in Section 3 below, and further authorizing City to purchase the Farm Land for the sum of $1,696,6 60 puruant to the terms and conditions of said contract; 34 e 1 B. The City Council for the City of Waterloo adopting a resolution authorizing City to convey the Farm Land to LHF in exchange for the Development Land by directing the sellers of the Farm Land to convey it directly to LHF in accordance with the terms of that certain Option Exchange Agreement between City and LHF dated March 8, 2010, as amended on March 30, 2015; C. City completing its purchase of the Farm Land prior to closing on this exchange with LHF. 2.2 LHF's obligations herein shall be subject to and conditioned upon City completing its purchase of the Farm Land. Section 3. Terms of Assignment. City will be taking assignment of an existing contract to purchase the Farm Land. A copy of said contract, as amended, is attached to this Agreement as Exhibit "D." A copy of the Assignment is attached as Exhibit "E." Section 4. Conveyance of Property. 4.1 City agrees to require the current owners of the Farm Land to convey said real property directly to LHF by warranty deed as consideration for LHF's conveyance of the Development Land to City by warranty deed; 4.2 City agrees to accept the conveyance of the Development Land in accordance with the terms and conditions of this Exchange Agreement. 4.3 In recognition of LHF's role in identifying and pre -approving the Farm Land for acquisition by City for purposes of this Agreement, LHF agrees to accept the conveyance of the Farm Land "as is," subject to all conditions, easements, restrictions and other characteristics, and hereby acknowledges that City has not made and will not make any representation or warranty with respect to the Farm Land, whether as to merchantability of said land, its fitness for any particular purpose, or otherwise. 4.4 The parties agree that both the Farm Land and the Development Land shall be deemed to have a value of $1,696,636.60 for purposes of this transaction. 4.5 No cash consideration will be exchanged between the parties. Section 5. Form of Conveyance 5.1 City shall cause the current owner of the Farm Land to convey said real property directly to LHF by Warranty Deed. LHF shall convey the Development Land to City by Warranty Deed. Title shall be merchantable title in accordance with the Iowa Title Standards. 2 5.2 All liens or clouds on title shall be removed prior the Exchange. 5.3 If title cannot be made merchantable within a reasonable period of time, this Exchange Agreement shall become null and void. Section 6. Closing. The closing on the Exchange contemplated herein shall occur contemporaneously with the closing on City's purchase of the Farm Land. It is expected that the closing will occur on or before March 13, 2020. Section 7. Property Taxes. 7.1 LHF acknowledges that City will receive a credit against the $1,696,636.60 purchase price for the Farm Land in an amount equal to the annual real estate taxes on the Farm Land prorated through the closing date, and that as a result of such credit, the seller of the Farm Land will expect City and its successors to pay the installments of property taxes due on and after March 31, 2020. LHF agrees to assume responsibility for making the general property tax payments for the Farm Land due March 31, 2020, and all subsequent installments. 7.2 LHF will pay the property taxes on the Development Land that are due March 31, 2021 and all prior installments. City shall be responsible for real estate taxes attributable to the Development Land due September 30, 2021, and all subsequent installments of general real estate taxes attributable to the Development Land, if any. Section 8. Survey. If the parties determine that a survey of the Development Land, or any part thereof, is required, then City shall reimburse LHF for the cost of procuring a plat of survey for the Development Land. The plat of survey must be completed and filed of record in the office of the Black Hawk County Recorder prior to the completion of the Exchange contemplated herein. Section 9. Abstracting. 9.1 The current owner of the Farm Land will provide City with an updated abstract of title or title report for the Farm Land prior to City having to complete its purchase of the Farm Land. Upon receipt of the abstract of title or title report, City shall deliver it to legal counsel for LHF. Legal counsel for LHF shall examine the abstract or title report and confirm that the current owner of the Farm Land possesses marketable title to the real estate as required by this Exchange Agreement. 9.2 LHF will provide City with an updated title report for the parcel of real estate that includes the Development Land. City acknowledges that the title report may include other real estate. City shall bear the expense of paying the abstract company to prepare a 3 separate abstract of title for the Development Land. City may defer the preparation of this abstract of title until such time as it is prepared to sell all or a portion of the Development Land. Section 10. Other Closing Costs. Each of the parties agrees to pay any closing costs not specifically addressed herein in the manner customarily paid by buyers and sellers as part of real estate transactions in the State of Iowa. Section 11. Option to Rent. City agrees that as long as City remains the titleholder to all or a portion of the Development Land, Lanehaven Farms, Inc., shall be entitled to rent any and all undeveloped portions of the Development Land on a year-to-year basis on the condition that Lanehaven Farms, Inc., enter into a written lease agreement with City requiring, among other things, that Lanehaven Farms, Inc., provide the same indemnification customarily required of tenants in a cash basis farm lease and that Lanehaven Farms, Inc., procure customary liability insurance identifying City as an additional insured. Annual rent for the 2020-2021 crop year shall be $190.00 per acre. Thereafter, annual rent shall be mutually agreed upon by the parties or in the absence of such agreement, it shall be set at the then prevailing fair rental value as determined by a mutually agreeable farm management company such as Hertz Farm Management. Rent shall be payable in December of each calendar year. Section 12. Notices. All notices, requests, demands, directions and other communications required or permitted to be given pursuant to this Agreement shall be valid if in writing and if delivered personally, or sent by certified or registered mail, return receipt requested, postage prepaid and addressed as follows: To City: To LHF: Section 13. Amendments. The City of Waterloo, a municipal corporation Attention: Quentin M. Hart, Mayor Attention: Kelley Felchle, City Clerk 315 Mulberry Street Waterloo, Iowa 50703 L & H Farms, Ltd., an Iowa general partnership Lanehaven Farms, Inc., Partner Attention: Curtis Hollis, President 7502 Hammond Avenue Waterloo, Iowa 50701 This Agreement may not be modified except in a written instrument signed by the parties. 4 Section 14. Enforceability. This Agreement shall bind and inure to the benefit of the parties hereto and their respective successors, executors, personal representatives and assigns. No party to this Agreement may assign their/its rights or interests hereunder without the prior written consent of each of the other parties. Section 15. Counterparts. This Agreement may be executed simultaneously in two or more counterparts, each of which shall be deemed an original, but all of which taken together shall constitute one and the same document. Section 16. Limitation of Rights. With the exception of the rights herein expressly conferred, nothing expressed in this Agreement is intended or shall be construed to give to any person or entity, other than the parties hereto, any legal or equitable right, remedy or claim under or in respect to this Agreement or any covenants, agreements, conditions and provisions herein contained, this Agreement and all of the covenants, agreements, conditions and provisions hereof being intended to be and being for the sole and exclusive benefit of the parties hereto. Section 17. Severability. If any provision of this Agreement shall be held or deemed to be or shall, in fact, be inoperative or unenforceable as applied in any particular case in any jurisdiction or jurisdictions or in all jurisdictions, or in all cases because it conflicts with any other provision or provisions hereof or any constitution or statute or rule of public policy, or for any other reason, such circumstances shall not have the effect of rendering the provision in question inoperative or unenforceable in any other case or circumstance, or of rendering any other provision or provisions herein contained invalid, inoperative, or unenforceable to any extent whatever. Section 18. Intent. It is the intent of the parties that this Exchange Agreement shall permit each party to complete a like -kind exchange pursuant to Internal Revenue Code Sec. 1031 and it is intended to comply with the requirements of the regulations thereunder, including, but not limited to, Reg. 1.1030(k)-1. To the extent that any provisions herein conflict with the requirements of the safe harbor provisions contained therein, the requirements and the conditions of the statute and the regulations shall control. 5 IN WITNESS WHEREOF, City and LHF have each caused this Agreement to be executed, sealed and delivered as of the day and year first above written. THE CITY OF WATERLOO, IOWA, A MUNICIPAL CORPORATION By: D.l AAv� oar -- By: Quentin M. Hart, Mayor Kelley c le, City Clerk L & H FARMS, LTD. By: LANEHAVEN FARMS, INC., Partner By: dti '., J,LZ Zo Curtis G. Hollis, President STATE OF IOWA ) ss. COUNTY OF BLACK HAWK ) This instrument was acknowledged before me on the LO day of March, 2020, by Quentin M. Hart as Mayor and Kelley Felchle as City Clerk of the City of Waterloo, Iowa, an Iowa municipal corporation. ,V1h-P Notary Pu is in an4' fpr Black County, Iowa NANCY HIGBY COMMISSION NO.788229 MY C MMISSIOON EXPIRES 6 STATE OF IOWA ) ) ss. COUNTY OF BLACK HAWK ) This instrument was acknowledged before me on the (3 day of AAawt t 2020, by Curtis G. Hollis as President of Lanehaven Farms, Inc., an Iowa corporation, General Partner of L & H Farms, Ltd., an Iowa general partnership. ,,,,,te., MARK ROLINGER ,y .Commission Number 162107 My Commission Expires Notary Public in and for B ack Hawk County, Iowa 7 EXHIBIT "A" The Southwest Quarter of Section 32, Township 87 North, Range 13 West of the 5th P.M., in Black Hawk County, Iowa (containing approximately 149.06 tillable acres). 8 • EXHIBIT "B" Development Land Parcel Grantor's remaining land in the North Half of the Southwest Quarter (N% SW'/) in Section No. 9, Township No. 88 North, Range No. 13 West of the Fifth Principal Meridian, Black Hawk County, Iowa, EXCEPT that part thereof conveyed to the City of Waterloo in a deed filed March 14, 2012 as Doc. No. 2012-16922 AND EXCEPT that part thereof described in a deed dated April 29, 1996 and filed May 1, 1996, at Book 567 Land Deeds at Page 633 AND EXCEPT that part thereof described in a deed dated April 4, 1997 and filed April 4, 1997 at Book 569 Land Deeds at Page 042, AND EXCEPT that part thereof described in a deed dated May 27, 2016 and filed June 1, 2016 as Doc. No. 2016-20467 AND EXCEPT that part thereof described in a deed dated March 6, 2018 and filed April 12, 2018 as Doc. No. 2018-16547 all filed in the Office of the Black Hawk County Recorder. AND The North Half of the South Half of the Southwest Quarter (N'/2 S'/2 SW %4) in Section No. 9, Township No. 88 North, Range No. 13 West of the Fifth Principal Meridian, Black Hawk County, Iowa, EXCEPT the West 385 feet thereof; AND The south 103.6 feet of the East One-half of the Northwest Quarter of Section No. 9, Township No. 88 North, Range No. 13 West of the Fifth Principal Meridian in Black hawk County, Iowa Subject to easements, restrictions, covenants, ordinances and limited access provisions of record and not of record. *City and LHF herby agree that the above legal description may need to be modified to address concerns or requirements imposed by the Black Hawk County Recorder and/or auditor. 9 EXHIBIT "D" William M. Miller Contract l0 EXHIBIT "E" ASSIGNMENT OF REAL ESTATE CONTRACT 11 Please return this copy to: City Clerk & Finance Dept. 715 Mulberry St. Waterloo, IA 50703 ASSIGNMENT OF REAL ESTATE CONTRACT THIS ASSIGNMENT is made and entered into this /3 day of March, 2020, by and between Lanehaven Farms, Inc., an Iowa Corporation, and the City of Waterloo, Iowa, a municipal corporation ("City"). 1. Assignment. Lanehaven Farms, Inc. hereby assigns its rights, to acquire the Southwest Quarter of Section 32, Township 87 North, Range 13 West of the 5th P.M. (149.06 tillable acres more or less) in a Farm and Land — Offer for Real Estate entered into between William M. Miller as Seller and Brian Hargens. as Buyer on February 1, 2020 (hereinafter the "Purchase Agreement") to City. 2. Acceptance of Assignment. City hereby accepts assignment of the Purchase Agreement and acknowledges that the portion of the $2,850,000.00 purchase price provided for in the Purchase Agreement allocable to land to be acquired by City is $1,696,636.60. 3. Hold Harmless. Lanehaven Farms, Inc. agrees to indemnify City and hold City harmless from any an all liability on the part of Lanehaven Farms, Inc. to complete the purchase of the remaining real estate included in the Purchase Agreement. Lanehaven Farms, Inc. THE CITY OF WATERLOO, IOWA, A MUNICIPAL CORPORATION By: Curtis G. Hollis, President 63Fz9-44:0 By: Quentin M. Hart,LMayor Kelley Fe hle, City Clerk MEMORANDUM OF AGREEMENT REGARDING PRORATING OF REAL ESTATE TAXES This Agreement is entered into this (3 day of March, 2020, by and between L & H Farms, Ltd. ("L&H") and the City of Waterloo, Iowa ("City"). RECITALS A. L&H and City are parties to a certain Exchange Agreement by which L&H will convey to City, as part of an exchange of like -kind real estate, certain real property described as: Grantor's remaining land in the North Half of the Southwest Quarter (N'/2 SW'/a) in Section No. 9, Township No. 88 North, Range No. 13 West of the Fifth Principal Meridian, Black Hawk County, Iowa, EXCEPT that part thereof conveyed to the City of Waterloo in a deed filed March 14, 2012 as Doc. No. 2012-16922 AND EXCEPT that part thereof described in a deed dated April 29, 1996 and filed May 1, 1996, at Book 567 Land Deeds at Page 633 AND EXCEPT that part thereof described in a deed dated April 4, 1997 and filed April 4, 1997 at Book 569 Land Deeds at Page 042, AND EXCEPT that part thereof described in a deed dated May 27, 2016 and filed June 1, 2016 as Doc. No. 2016-20467 AND EXCEPT that part thereof described in a deed dated March 6, 2018 and filed April 12, 2018 as Doc. No. 2018-16547 all filed in the Office of the Black Hawk County Recorder. AND The North Half of the South Half of the Southwest Quarter (N%2 S%2 SW '/a) in Section No. 9, Township No. 88 North, Range No. 13 West of the Fifth Principal Meridian, Black Hawk County, Iowa, EXCEPT the West 385 feet thereof; AND The south 103.6 feet of the East One-half of the Northwest Quarter of Section No. 9, Township No. 88 North, Range No. 13 West of the Fifth Principal Meridian in Black hawk County, Iowa Subject to easements, restrictions, covenants, ordinances and limited access provisions of record and not of record. (the "Real Estate"). B. The purpose of this Agreement is to confirm the parties' agreement regarding the manner in which real estate taxes will be prorated. The parties acknowledge that the Exchange Agreement requires that taxes for the Real Estate are to be prorated to the closing date for the sale and purchase of the Real Estate, likely March 13, 2020. AGREEMENT NOW, THEREFORE, in consideration of the mutual promises exchanged herein, and for other consideration, the receipt and sufficiency of which is hereby acknowledged, the parties agree that L&H will pay the full tax bill for the Real Estate that is due on or before September 30, 2020. Concurrently with said payment, L&H will also deliver a check in the amount of $ , payable to the Black Hawk County Treasurer, to the office of City's legal counsel, namely, Clark Butler Walsh & Hamann, 315 E. 5th Street, Waterloo, Iowa, 50703, Attn: Chris Wendland. City's legal counsel will be responsible for remittance of said check to the treasurer's office as a prepayment of L&H's prorated share of the March 2021 tax installment. The parties acknowledge that the sum of $ is a good -faith estimate based on currently available information. The parties also acknowledge that, when tax bills are issued in August 2020, the Real Estate will not be taxed as a separate parcel from the larger parcels of which it is a portion, but that the treasurer's office has indicated that taxes otherwise attributable to the Real Estate will not be included in said tax bills for the larger parcels. The August 2020 tax bills for the parcels retained by L & H will be the full and sole responsibility of L&H. The parties agree to cooperate reasonably and in good faith, and to take such further steps as may be reasonably necessary or advisable, to carry out the purpose and intent of this Agreement. IN WITNESS WHEREOF, the parties have executed this Agreement by their duly authorized representatives as of the date first set forth above. L & H FARMS, LTD. CITY OF WATERLOO, IOWA By: LANEHAVEN FARMS, INC., Partner By: G1(t '177.11 Quentin M. Hart, Mayor . By: Curtis G. Hollis, President 2 Attest: Kelley Felc �', City Clerk Please return this copy to: City Clerk & Finance Dept. 715 Mulberry St. Waterloo, IA 50703 A. Settlement Statement (HUD-1) Approval No. 2502-0265 B. Type of Loan 1.0 FHA 2.0 RHS 3.❑ Conv. Unins 4.❑ VA 5.0 Conv. Ins 6. File Number: MSR/rjh 7. Loan Number: 8. Mortgage Insurance Case Number: C. Note: This form is furnished to give you a statement of actual settlement costs. Amounts paid to and by the settlement agent are shown. Items marked "(p.o.e.)" were paid outside the closing; they are shown here for informational purposes and are not included in the totals. D. Name & Address of Borrower: City of Waterloo 715 Mulberry Street Waterloo, IA 50703 E. Name & Address of Seller: L & H Farms, Ltd. 7502 Hammond Avenue Waterloo, IA 50701 F. Name & Address of Lender: G. Property Location: Development Land H. Settlement Agent: Mark S Rolinger 415 Clay Street Cedar Falls, IA 50613 TIN: Phone: 3192776830 Lot: Block: Place of Settlement: 415 Clay Street Cedar Falls, IA 50613 I. Settlement Date: 3/13/2020 Funding Date: 3/13/2020 J. Summary of Borrower's Transaction K. Summary of Seller's Transaction 100. Gross Amount Due From Borrower 400. Gross Amount Due To Seller 101. Contract sales price 1, 696, 636. 60 401. Contract sales price 1, 696, 636. 60 102. Personal property 402. Personal property 103. Settlement charges to borrower (line 1400) 22.00 403. 104. 404. 105. 405. Adjustments for items paid by seller in advance Adjustments for items paid by seller in advance 106. City/town taxes: 406. City/town taxes: to to 107. County taxes: 407. County taxes: to to 108. Assessments: 408. Assessments: to to 109. 409. 110. 410. 111. 411. 112. 412. 120. Gross Amount Due From Borrower 1, 696, 658.60 420. Gross Amount Due To Seller 1, 696, 636. 60 200. Amounts Paid By Or In Behalf Of Borrower 500. Reductions In Amount Due To Seller 201. Deposit or eamest money 501. Excess deposit (see instructions) 202. Principal amount of new loan(s) 502. Settlement charges to seller (line 1400) 2,731.40 203. Existing loan(s) taken subject to 503. Existing loan(s) taken subject to 1 y 204. 504. Payoff of first mortgage loan q 2I l ' 205. 505. Payoff of second mortgage loan 206. property Buyer 's conveyance of replacement 1,696,636.60 506.Buyer's conveyance of replacement property 1,696,636.60 207. 507. 208. 508. 209. 509. Adjustments for items unpaid by seller Adjustments for items unpaid by seller 210. City/town taxes: 510. City/town taxes: to to 211. County taxes: 511. County taxes: to to 212. Assessments: 512. Assessments: to to 213. 513. 214. 514. 215. 515. 216. 516. 217. 517. 218. 518. 219. 519. 220. Total Paid By/For Borrower 1, 696, 636. 60 520. Total Reduction Amount Due Seller 1, 699, 368. 00 300. Cash At Settlement From/To Borrower 600. Cash At Settlement To/From Seller 301. Gross Amount due from borrower (line 120) 1, 696, 658. 60 601. Gross amount due to seller (line 420) 1, 696, 636. 60 302. Less amounts paid by/for borrower (line 220) 1, 696, 636. 60 602. Less reductions in amount due seller (line 520) 1, 699, 368.00 303. Cash l 1 From ❑ To Borrower 22.00 603. Cash ❑ To lEI From Seller 21731.40 The Public Reporting Burden for this collection of information is estimated at 35 minutes pe response for collecting, reviewing, and reporting the data. This agency may not collect this information, and you are not required to complete this form, unless it displays a currently valid OMB control number. No confidentiality is assured; this disclosure is mandatory. This is designed to provide the parties to a RESPA covered transaction with information during the settlement process. © 2009-2019 Easysoft. Previous editions are obsolete. Page 1 of 3 HUD-1 L. Settlement Charges File Number: MSR/rjh Loan Number: 700. Total Real Estate Broker Fees Paid From Borrower's Funds at Settlement Paid From Seller's Funds at Settlement Division of Commission (line 700) as follows: 701. $ to 702. $ to 703. Commission paid at settlement 704. 800. Items Payable In Connection With Loan 801. Our origination charge $ (from GFE #1) 802. Your credit or charge (points) for the specific interest rate chosen $ (from GFE #2) 803. Your adjusted origination charges (from GFE A) 804. Appraisal fee to (from GFE #3) 805. Credit report to (from GFE #3) 806. Tax service to (from GFE #3) 807. Flood certification (from GFE #3) 808. (from GFE #3) 809. (from GFE #3) 810. (from GFE #3) 811. (from GFE #3) 900. Items Required By Lender To Be Paid In Advance 901. Daily interest charges from 3/13/2020 to 9/1/2020 @ $ /day (from GFE #10) 902. Mortgage insurance premium for 0 months to (from GFE #3) 903. Homeowner's insurance for 0 years to (from GFE #11) 904. 905. 1000. Reserves Deposited With Lender 1001. Initial deposit for your escrow account (from GFE #9) 1002. Homeowner's insurance months @ per mo $ 1003. Mortgage insurance months @ per mo $ 1004. Property taxes months @ per mo $ 1005. months @ per mo $ 1006. months @ per mo $ 1007. Aggregate Adjustment $0.00 1100. Title Charges 1101. Title services and lender's title insurance (from GFE #4) 1102. Settlement or closing fee 1103. Owner's title insurance (from GFE #5) 1104. Lender's title insurance 1105. Lender's title policy limit $ 1106. Owner's title policy limit $ 1107. Agent's portion of the total insurance premium $ 1108. Underwriter's portion of the total insurance premium $ 1109. 1110. 1111. 1200. Government Recording and Transfer Charges 1201. Govemment recording charges Black Hawk County Recorder (from GFE #7) 22.00 17.00 1202. Deed $22.00 Mortgage $ Release $ 1203. Transfer taxes Black Hawk County Recorder (from GFE #8) 2,714.40 1204. City/County tax/stamps: Deed $ Mortgage $ 1205. State tax/stamps: Deed $ Mortgage $ 1206. $ 1207. $ 1300. Additional Settlement Charges 1301. Required services that you can shop for (from GFE #6) 1302. 1303. 1304. 1305. 1306. 1307. 1308. 1400. Total Settlement Charges (enter on lines 103, Section J and 502, Section K) 22.00 2,731.90 I have carefully reviewed the HUD-1 Settlement Statement and to the best of my knowledge and belief, it is a true and my account or by me in this transaction. I further certify that I have received a copy of the HUD-1 Settlement Statement. City of Waterloo Buyer/Borrower L & H Farms, Ltd. Seller Buyer/Borrower Seller This Settlement Statement which I've prepared is a true and accurate account of this transaction. I've caused or will cause the funds to be disbursed in accordance with this statement. Mark S Rolinger Settlement Agent Date WARNING' It is a crime to knowinoly make false statements to the United States on this or any other similar form. Penalties upon conviction can include a fine or imprisonment. ®2009-2019 Easysoft. Previous editions are obsolete. Page 2 of 3 HUD-1 Comparison of Good Faith Estimate (GFE) and HUD-1 Charges Charges That Cannot Increase Our origination charge Your credit or charge (points) for the specific rate chosen Your adjusted origination charges Transfer taxes HUD-1 Line Number #801 #802 #803 #1203 Charges That in Total Cannot Increase More Than 10% Government recording charges #1201 Total Increase between GFE and HUD-1 Charges Charges That Can Change Initial deposit for your escrow account #1001 Daily interest charges #901 Homeowner's insurance #903 Loan Terms Good Faith Estimate HUD-1 0.00 0.00 0 00 0.00 0.00 0.00 0.00 0.00 Good Faith Estimate HUD-1 0.00 22.00 0.00 22.00 22.00 Good Faith Estimate HUD-1 0.00 0.00 0.00 0.00 0.00 0.00 Your initial loan amount is $ Your loan term is Years Your initial interest rate is ova Your initial monthly amount owed for principal, interest, and any mortgage insurance is $ includes ❑ Principal ❑ Interest ❑ Mortgage Insurance Can your interest rate rise? g No. D Yes, it can rise to a maximum of %. The first change will be on and can change again every after . Every change date, your interest rate can increase or decrease by %. Over the life of the loan, your interest rate is guaranteed to never be lower than % or higher than %. Even if you make payments on time, can your loan balance rise? O No. ❑ Yes, it can rise to a maximum of $ Even if you make payments on time, can your monthly amount owed for principal, interest, and mortgage insurance rise? Ixl No. ❑ Yes, the first increase can be on and the monthly amount owed can rise to $ . The maximum it can ever rise to is $ . Does your loan have a prepayment penalty? CI No. ❑ Yes, your maximum prepayment penalty is $ . Does your loan have a balloon payment? 0 No. ❑ Yes, you have a balloon payment of $ due in years on . Total monthly amount owed including escrow account payments I J You do not have a monthly escrow payment for items, such as property taxes and homeowner's insurance. You must pay these items directly yourself. ❑ You have an additional monthly escrow payment of $ that results in a total initial monthly amount owed of $ . This includes principal, interest, any mortgage insurance and any items checked below: ❑ Property taxes ❑ Homeowner's insurance ❑ Flood insurance ❑ ❑ ❑ ote: If you have any questions about the Settlement Charges and Loan Terms listed on this form, please contact your lender. ® 2009-2019 Easysoft. Previous editions are obsolete. Page 3 of 3 HUD-1 4. Please return thls copy to: City Clerk & Finance Dept. 715 Mulberry St. Waterloo, IA 50703 A. Settlement Statement (HUD-1) .. Approval No. 2502-0265 B. Type of Loan 1.0 FHA 2.❑ RHS 3.1=1 Conv. Unins 4.1i VA 5.1=I Conv. Ins 6. File Number: MSR/rjh 7. Loan Number: 8. Mortgage Insurance Case Number: C. Note: This form is furnished to give you a statement of actual settlement costs. Amounts paid to and by the settlement agent are shown. Items marked "(P.o.e.)" were paid outside the closing; they are shown here for informational purposes and are not included in the totals. D. Name & Address of Borrower City of Waterloo 715 Mulberry Street Waterloo, IA 50703 E. Name & Address of Seller: William M. Miller 1669 110th Street Reinbeck, IA 50669 F. Name & Address of Lender: G. Property Location: SW 1/9 Section 32 TWP 87N R13, Black Hawk County H. Settlement Agent: Mark S Rolinger 415 Clay Street Cedar Falls, IA 50613 TIN: Phone:3192776830 Lot: Block: Place of Settlement: 415 Clay Street Cedar Falls, 50613 I. Settlement Date: 3/13/2020 Funding Date: 3/13/2020 J. Summary of Borrower's Transaction K. Summary of Seller's Transaction 100. Gross Amount Due From Borrower 400. Gross Amount Due To Seller 101. Contract sales price 1, 696, 636. 60 401. Contract sales price 1,696, 636.60 102. Personal property 402. Personal property 103. Settlement charges to borrower (line 1400) 403. 104. 404. 105. 405. Adjustments for items paid by seller in advance Adjustments for items paid by seller in advance 106. City/town taxes: 406. City/town taxes: to to 107. County taxes: 407. County taxes: to to 108. Assessments: 408. Assessments: to to 109. 409. 110. 410. 111. 411. 112. 412. 120. Gross Amount Due From Borrower 1, 696, 636.60 420. Gross Amount Due To Seller 1, 696, 636.60 200. Amounts Paid By Or In Behalf Of Borrower 500. Reductions In Amount Due To Seller 201. Deposit or eamest money 501. Excess deposit (see instructions) 202. Principal amount of new loan(s) 502. Settlement charges to seller (line 1400) 32, 681.01 203. Existing loan(s) taken subject to 503. Existing loan(s) taken subject to 204. 504. Payoff of first mortgage loan 205. 505. Payoff of second mortgage loan 206. 506.Taxes Due 3/31/20 - Black Hawk County Treasurer 2,663.00 207. 507. 208. 508. 209. 509. Adjustments for items unpaid by seller Adjustments for Items unpaid by seller 210. City/town taxes: 510. City/town taxes: to to 211. County taxes: 511. County taxes: to to 212. Assessments: 512. Assessments: to to 213. Tax Proration-07/01/2019-03/13/2020 3,735.04 513. Tax Proration-07/01/2019-03/13/2020 3,735.09 214. 514. 215. 515. 216. 516. 217. 517. 218. 518. 219. 519. 220. Total Paid By/For Borrower 3,735.04 520. Total Reduction Amount Due Seller 39, 079.05 300. Cash At Settlement From/To Borrower 600. Cash At Settlement To/From Seller 301. Gross Amount due from borrower (line 120) 1, 696, 636.60 601. Gross amount due to seller (line 420) 1, 696, 636.60 302. Less amounts paid by/for borrower (line 220) 3,735.04 602. Less reductions in amount due seller (line 520) 39, 079.05 303. Cash l5 From ❑ To Borrower 1, 692, 901.56 603. Cash Imp To 0 From Seller 1, 657, 557.55 The Public Reporting Burden for this collection of information is estimated at 35 minutes pe response for collecting, reviewing, and reporting the data. This agency may not collect this information, and you are not required to complete this form, unless it displays a currently valid OMB control number. No confidentiality is assured; this disclosure is mandatory. This is designed to provide the parties to a RESPA covered transaction with information during the settlement process. © 2009-2019 Easysoft. Previous editions are obsolete. Page 1 of 3 HUD-1 L. Settlement Charges File Number: ma/ rjh Loan Number: 700. Total Real Estate Broker Fees Paid From Borrower's Funds at Settlement Paid From Seller's Funds at Settlement Division of Commission (line 700) as follows: 701. $29, 691. 61 to Century 21 Signature Real Estate 702. $ to 703. Commission paid at settlement 29, 691. 61 704. 800. Items Payable In Connection With Loan 801. Our origination charge $ (from GFE #1) 802. Your credit or charge (points) for the specific interest rate chosen $ (from GFE #2) 803. Your adjusted origination charges (from GFE A) 804. Appraisal fee to (from GFE #3) 805. Credit report to (from GFE #3) 806. Tax service to (from GFE #3) 807. Flood certification (from GFE #3) 808. (from GFE #3) 809. (from GFE #3) 810. (from GFE #3) 811 (from GFE #3) 900. Items Required By Lender To Be Paid In Advance 901.Daily interestcharges from 3/13/2020 to 4/1/2020 @ $ /day (from GFE#10) • 902. Mortgage insurance premium for 0 months to (from GFE #3) 903. Homeowner's insurance for 0 years to (from GFE #11) 904. 905. 1000. Reserves Deposited With Lender 1001. Initial deposit for your escrow account (from GFE #9) 1002. Homeowner's insurance months @ per mo $ 1003. Mortgage insurance months @ per mo $ 1004. Property taxes months @ per mo $ 1005. months @ per mo $ 1006. months @ per mo $ 1007. Aggregate Adjustment $0.00 1100. Title Charges 1101. Title services and lender's title insurance (from GFE #4) 1102. Settlement or closing fee 1103. Owner's title insurance (from GFE #5) 1104. Lender's title insurance 1105. Lender's title policy limit $ 1106. Owner's title policy limit $ 1107. Agent's portion of the total insurance premium $ 1108. Underwriter's portion of the total insurance premium $ 1109. 1110. 1111. 1200. Government Recordinq and Transfer Charges 1201. Government recording charges (from GFE #7) 1202. Deed $ Mortgage $ Release $ 1203.Transfertoms Black Hawk County Recorder (from GFE #8) 2,714.40 1204. City/County tax/stamps: Deed $ Mortgage $ 1205. State tax/stamps: Deed $ Mortgage $ 1206. $ 1207. $ 1300. Additional Settlement Charges 1301. Required services that you can shop for (from GFE #6) 1302.Abstract continuation to Title Services Corporation 275.00 1303. 1304. 1305. 1306. 1307. 1308. 1400. Total Settlement Charges (enter on lines 103, Section J and 502, Section K) 32, 681. 01 I have carefully reviewed the HUD-1 Settlement Statement and to the best of my knowledge and belief, it is a true an[ my account or by me in this transaction. I further certify that I have received a copy of the HUD-1 Settlement Statement. City of Waterloo Buyer/Borrower William M. Miller Seller Buyer/Borrower Seller This Settlement Statement which I've prepared is a true and accurate account of this transaction. I've caused or will cause the funds to be disbursed in accordance with this statement. Mark S Rolinger Settlement Agent Date WARNING: It is a crime to knowingly make false statements to the United States on this or any other similarform. Penalties upon conviction can include a fine or imprisonment © 2009-2019 Easysoft. Previous editions are obsolete. Page 2 of 3 HUD-1 Comparison of Good Faith Estimate (GFE) and HUD-1 Charges Charges That Cannot Increase HUD-1 Line Number Our origination charge #801 Your credit or charge (points) for the specific rate chosen #802 Your adjusted origination charges #803 Transfer taxes #1203 Charges That in Total Cannot Increase More Than 10% Government recording charges #1201 Total Increase between GFE and HUD-1 Charges Charges That Can Change Initial deposit for your escrow account #1001 Daily interest charges #901 Homeowner's insurance #903 Good Faith Estimate HUD-1 0.00 0.00 0. 00 0.00 0.00 0.00 0.00 0.00 Good Faith Estimate HUD-1 0.00 0.00 0.00 0.00 0.00 Good Faith Estimate HUD-1 0.00 0.00 0.00 0.00 0.00 0.00 Loan Terms Your initial loan amount is $ Your loan term is Years Your initial interest rate is Your initial monthly amount owed for principal, interest, and any mortgage insurance is $ includes ❑ Principal ❑ Interest ❑ Mortgage Insurance Can your interest rate rise? El No. ❑ Yes, it can rise to a maximum of %. The first change will be on and can change again every after . Every change date, your interest rate can increase or decrease by %. Over the life of the loan, your interest rate is guaranteed to never be lower than % or higher than %. Even if you make payments on time, can your loan balance rise? I I No. ❑ Yes, it can rise to a maximum of $ . Even if you make payments on time, can your monthly amount owed for principal, interest, and mortgage insurance rise? O No. ❑ Yes, the first increase can be on and the monthly amount owed can rise to $ . The maximum it can ever rise to is $ . Does your loan have a prepayment penalty? 1 No. ❑ Yes, your maximum prepayment penalty is $ . Does your loan have a balloon payment? © No. ❑ Yes, you have a balloon payment of $ due in years on . Total monthly amount owed including escrow account payments ❑X You do not have a monthly escrow payment for items, such as property taxes and homeowner's insurance. You must pay these items directly yourself. ❑ You have an additional monthly escrow payment of $ that results in a total initial monthly amount owed of $ . This includes principal, interest, any mortgage insurance and any items checked below: El Property taxes ❑ Homeowner's insurance ❑ Flood insurance ❑ Note: If you have any questions about the Settlement Charges and Loan Terms listed on this form, please contact your lender. C 2009-2019 Easysoft. Previous editions are obsolete. Page 3 of 3 HUD-1