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HomeMy WebLinkAbout02-27-17 City Commission Packet Materials - A3. Resolution 4773, Authorizing Purchase of 801 N. RouseCommission Memorandum REPORT TO: Honorable Mayor and City Commission FROM: Greg Sullivan, City Attorney SUBJECT: Resolution 4773, Authorizing the Purchase of 801 North Rouse Avenue MEETING DATE: February 27, 2017 AGENDA ITEM TYPE: Action RECOMMENDATION: Adopt Resolution 4773 authorizing the City Manager and City Attorney to take all steps necessary to purchase real property located at 801 North Rouse Avenue. SUGGESTED MOTION: I move to adopt Resolution 4773 authorizing the City Manager and City Attorney to take all steps necessary to purchase real property located at 801 North Rouse Avenue. BACKGROUND: The two lots that comprise the property addressed as 801 North Rouse Avenue are the only non-city owned parcels on Block 29 of the Imes Addition (located at the corner of Rouse Avenue and Tamarack Street) (see attached map). Purchase of these two parcels will allow expansion of the yard of the City’s shops complex. Recently, the property owner approached the City inquiring as to whether the City would be interested in purchasing the property. On January 17, 2017, the City Manager indicated his interest in purchasing the property by signing the attached non-binding letter of interest (LoI). The LoI requires City Commission approval of the purchase. The LoI requires the City Manager to recommend the Commission purchase the property at the seller’s asking price of $225,000. The City Manager ordered an appraisal (see attached) which indicates the value of the property is $200,000. The City Manager and Director of Public Works believe there is considerable value in securing this property for addition to the Shops Complex. The City Manager and Director of Public Works will be available to discuss their recommendation for paying the asking price. Purchase will be by warranty deed. No title issues are identified. The property is currently zoned R2 and is located within the Neighborhood Conservation Overlay District. However, the Department of Community Development determined the house is not a contributing structure; as such, demolition can proceed upon compliance with the demolition requirements of chapter 10 of the Bozeman Municipal Code. This agenda item is presented in conjunction with a proposed budget amendment. Should the Commission approve the purchase, I and the City Manager will follow through with executing 176 the purchase and sale agreement and closing on the property. The work to secure the house will begin immediately upon the City taking ownership. Demolition of the house and improvements to the property for incorporation into the Shops Complex may take several months and into next fiscal year. UNRESOLVED ISSUES: None identified. ALTERNATIVES: None suggested other than the Commission may choose not to purchase the property. FISCAL EFFECTS: The purchase price is $225,000. The costs of demolition without an analysis of whether additional costs will be required due to the presence of asbestos or other hazardous materials is estimated to be approximately $22,000. In addition, the costs to reclaim the property and improve it for use by the City have not been formally determined through bids. However, City staff estimates costs of reclaiming the property, grading, pavement, extension of the fence, etc. will be in the ballpark of $45,000. Attachments: Resolution 4773 Map of 801 North Rouse Ave. Purchase and Sale Agreement Appraisal Title Commitment Report compiled on: February 17, 2017 177 COMMISSION RESOLUTION NO. 4773 A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF BOZEMAN, MONTANA, AUTHORIZING THE CITY MANAGER TO PURCHASE PROPERTY LOCATED AT 801 NORTH ROUSE AVENUE LEGALLY DESCRIBED AS LOTS 11 AND 12, BLOCK 29 IMES ADDITION TO THE CITY OF BOZEMAN WHEREAS, the City owns all but two lots in Block 29 of the Imes Addition providing critical facilities for the City’s public works operations; and WHEREAS, the purchase of these two lots will provide necessary additional space for the storage of equipment essential for the City’s ongoing and future public works operations; and WHEREAS, an appraisal was conducted as required by Sect. 2.06.860, BMC; and WHEREAS, the Commission determines the purchase price of $225,000 is reasonable given the value the purchase of this property has to provide additional space to the Shops Complex. NOW, THEREFORE, BE IT RESOLVED by the City Commission of the City of Bozeman, Montana, that: Section 1 The City Manager and City Attorney are hereby authorized to execute on behalf of the City the attached purchase and sale agreement attached as Exhibit A for the purchase of 801 North Rouse Avenue and to take all steps necessary to effectuate the purchase. 178 PASSED AND ADOPTED by the City Commission of the City of Bozeman, Montana, at a regular session thereof held on the 27th day of February, 2017. ___________________________________ CARSON TAYLOR Mayor ATTEST: ________________________________________ ROBIN CROUGH City Clerk APPROVED AS TO FORM: ___________________________________ GREG SULLIVAN City Attorney 179 801 North Rouse Avenue 2,257 0.1 This product is for informational purposes and may not have been prepared for, or be suitable for legal, engineering, or surveying purposes. Users of this information should review or consult the primary data and information sources to ascertain the usability of the information. 1: 1,878 Feet 0 0 801 North Rouse Avenue Legend 0 Notes Location 0 Street Names City Limits City Shops Complex Tamarack Street 801 North Rouse 180 Seller____ Buyer_____ -1- AGREEMENT TO SELL AND PURCHASE THIS AGREEMENT, made and entered into this ____ day of ____________________, 2017 is as follows: W I T N E S S E T H: WHEREAS, DLP LLC, of 10 East Olive, Bozeman, MT 59715, hereinafter for convenience referred to as "Seller", is the owner of record of real property informally known as 801 N. Rouse Avenue, Bozeman, Montana 59715 and legally described as: Lots 11 and 12, Block 29 of Imes Addition to the City of Bozeman, Gallatin County, Montana, according to the official plat thereof on file and of record in the office of the County Clerk and Recorder of Gallatin County, Montana. {Plat Reference: C-41} [Prior Deed Reference: Document Number 2566248] TOGETHER WITH all appurtenances and all improvements (hereinafter referred to as "the Property"). The parties agree that this Agreement and all related documents shall be amended to conform with the legal description of the real property as provided by the First American Title Company’s title commitment; WHEREAS, THE CITY OF BOZEMAN, a self-governing municipality operating pursuant to the laws of the State of Montana and its Charter, with a physical address of 121 North Rouse, Bozeman, MT 59715, and a mailing address of PO Box 1230, Bozeman, Montana, 50771-1230, hereinafter for convenience referred to as "Buyer", is desirous of purchasing the Property described above from Seller; and WHEREAS, Seller is desirous of selling to and conveying to Buyer the above described Property. NOW, THEREFORE, for and in consideration of the terms, covenants and conditions and the earnest money to be paid by the Buyer to Seller, the parties hereto do hereby agree as follows: 1 Purchase Price. That the purchase price for the Property shall be Two Hundred Twenty-Five Thousand Dollars ($225,000.00), which purchase price shall be paid as follows: 181 Seller____ Buyer_____ -2- A. $5,000.00 earnest money due within three (3) days of execution of this Buy/Sell, which shall be placed in escrow at First American Title Company and applied towards the purchase price; B. The balance of the purchase price in the amount of $220,000.00 shall be paid in cash or cash equivalent at closing. 2 Title Insurance. Seller shall procure and pay the cost of a commitment for a standard owner’s policy of title insurance from First American Title Company in the amount of the purchase price, showing that Seller’s title is free and clear of liens, encumbrances, and title defects, excepting: existing easements, encroachments, taxes and assessments for the current year; restrictive covenants, plats, COS, conditions and notations of record, building and land use restriction, prior reservations and restrictions in prior conveyances including but not limited to mineral, oil or gas rights, and the usual printed exceptions contained in the commitment. Should Buyer’s examination of the title commitment disclose any items which render the real property undesirable in Buyer’s sole discretion, then Buyer shall specify the irregularity in a written notice delivered to Seller on or before ten (10) calendar days after the title commitment has been made available to Buyer or three (3) days after execution of this Agreement should Buyer have received the title report from Seller prior to execution of this Agreement, whichever is later.. Seller shall have ten (10) calendar days of receipt of such notice to cure and/or remove any such title irregularities specified in the written notice if Seller desires to do so but in no event shall Seller be required to do so. If Seller does not cure the irregularities, then this Agreement may be rescinded at the option of either party hereto, by written notice to the other party, in which event the earnest money and accrued interest thereon shall be refunded to Buyer. Seller shall cause at closing, at Seller’s expense, an owner’s policy of title insurance to be issued to Buyer in accordance with the terms of this paragraph. 3 Closing/Costs. Closing date for this transaction shall be March 10, 2017 and held at the title company, unless hereinafter extended or shortened by mutual agreement of the parties and evidenced in writing. The title company's escrow fee is to be shared equally between the Buyer and Seller. The recording costs to transfer title shall be Buyer's responsibility. 4 Prorations. Current taxes and assessments, fees and other matters shall be prorated between Buyer and Seller as of the date of closing. Delinquent taxes, if any, shall remain Seller’s sole responsibility. All Special Improvement Districts, including 182 Seller____ Buyer_____ -3- those that have been noticed but not yet spread or currently assessed, shall be paid by Buyer. Monetary encumbrances on property, if any, shall be paid off by Seller at closing. 5 Risk of Loss. Buyer and Seller agree that the risk of loss of the Property shall remain on Seller until 5:00 p.m. on the date of closing. 6 Possession. Buyer shall be entitled to complete possession of the Property upon the Title Company’s recording of the Deed. 7 Conveyance. Conveyance of the property described above shall be by general warranty deed and shall include all mineral and water interests owned by Seller, if any. 8 1031 Exchange. Either party may involve this transaction in a 1031 tax deferred exchange without cost or liability to the other party who agrees to cooperate in such exchange by executing such assignments and other documents reasonably required to complete such exchange. 9 Residency. That Section 1445 of the Internal Revenue Code provides that a Buyer of an interest in real property in the United States must withhold tax if the Seller is a foreign person. In this connection Seller represents, acknowledges and certifies Seller is not a nonresident alien for the purposes of U.S. income taxation. 10 Contingencies. This Agreement is subject to and contingent upon the review and unqualified approval by Buyer of each and every one and all of the following conditions, failing which this Agreement shall be at an end, terminate and of no further force and effect, and all earnest money, together with accrued interest, shall be immediately returned to Buyer. The contingencies set forth below shall be deemed satisfied and removed at 11:00 p.m. on the release date below, unless Buyer objects to any one or more of the contingencies in writing and delivers the same to Seller on or before that date: A. Review and approval of the title report referred to in paragraph 2 above. Release Date: ten (10) calendar days from Buyer's receipt of same or three (3) days after execution of this Agreement should Buyer have received the title report from Seller prior to execution of this Agreement, whichever is later. 183 Seller____ Buyer_____ -4- B. Review and approval by Buyer of all aspects of this transaction and property deemed appropriate by Buyer. This contingency may be generally referred to as Buyer’s due diligence investigation. Release Date: three (3) days after execution of this Agreement. 13 Counterparts. The parties agree that facsimile or electronic copies of signatures to this Agreement shall be deemed binding. 14 Disclosures. A. Megan’s Law Disclosure. Pursuant to the provisions of Title 46, Chapter 23, Part 5 of the Montana Code Annotated, certain individuals are required to register their address with the local law enforcement agencies as part of Montana's Sexual and Violent Offender Registration Act. In some communities, law enforcement offices will make the information concerning registered offenders available to the public. If you desire further information, please contact the local County Sheriff's office, the Montana Department of Justice, in Helena, Montana, and the probation officers assigned to the area. B. Radon Disclosure Statement. Pursuant to the requirements of Mont. Code Ann. §75-3-606, Seller makes the following disclosure: RADON GAS: RADON IS A NATURALLY OCCURRING RADIOACTIVE GAS THAT, WHEN IT HAS ACCUMULATED IN A BUILDING IN SUFFICIENT QUANTITIES, MAY PRESENT HEALTH RISKS TO PERSONS WHO ARE EXPOSED TO IT OVER TIME. LEVELS OF RADON THAT EXCEED FEDERAL GUIDELINES HAVE BEEN FOUND IN BUILDINGS IN MONTANA. ADDITIONAL INFORMATION REGARDING RADON AND RADON TESTING MAY BE OBTAINED FROM YOUR COUNTY OR STATE PUBLIC HEALTH UNIT. By executing this Agreement, Buyer acknowledges receipt of this disclosure. Seller advises Buyer that testing for radon gas and radon progeny has or has not (circle one) been conducted on the Property. C. Lead Paint Warning and Disclosure Statement. (i) Description: General Information. Every purchaser of any interest in residential real property on which a residential dwelling was built prior to 1978 is notified that 184 Seller____ Buyer_____ -5- such property may present exposure to lead form lead-based paint that may place young children at risk of developing lead poisoning. Lead poisoning in young children may produced permanent neurological damage, including learning disabilities, reduced intelligence quotient, behavioral problems and impaired memory. Lead poisoning also poses a particular risk to pregnant women. A risk assessment or inspection for possible lead-based paint hazards is recommended prior to purchase. (ii) Disclosure. The house was/was not built after 1978 and to the best of Sellers' knowledge does/does not contain lead based paint (Please circle applicable choice). D. Mold & Mildew Disclosure Statement. Buyers of property in the State of Montana should be aware that some homes and outbuildings may contain mold or mildew. There are currently no Federal Guidelines to address the health problems associated with mold or mildew. Therefore, if mold or mildew is a concern, it is highly recommended that the Buyers have the home(s) and/or outbuilding(s) tested, prior to taking possession of the property. E. Noxious Weed Disclosure. Buyer acknowledges the following noxious weeds disclosure: The laws of the State of Montana require Sellers of property to notify Buyers of property that noxious weeds exist or potentially exist on the property being offered for sale. The State of Montana and Gallatin County have established certain requirements for the control of noxious weeds. For information concerning noxious weeds and a property owner's obligations, Buyer may contact either the local County extension agent of the County Week Control Board. F. Water Right Ownership Update Disclosure. By Montana law, failure of the parties at closing or transfer of real property to pay the required fee to the Montana Department of Natural Resources and Conservation for updating water right ownership may result in the transferee of the property being subject to a penalty. Additionally, in the case of water rights being exempted, severed, or divided, the failure of the parties to comply with §85-2-424, M.C.A., could result in a penalty against the transferee and rejection of the Deed for recording. 15. Seller’s Representations and Warranties. Seller represents and warrants to Buyer, which representations and warranties shall be true as of the closing date, as follows: A. The Seller has fee simple title to the real property, and full authority to convey complete fee simple title to the Buyer. 185 Seller____ Buyer_____ -6- B. The Seller makes no warranty as to the condition of the Property or habitability of the improvements. The Buyer is aware, understands and agrees that all land, improvements and real and personal property will be conveyed by the Seller to the Buyer in an "AS IS" condition without warranty or representation, express or implied. The Buyer hereby agrees, acknowledges and affirms to the Seller that the Buyer has had full opportunity to inspect, and accepts all land, improvements and real and personal property in an "AS IS" condition. Buyer understands and acknowledges that the Seller hereby expressly disclaims any and all warranties, whether express or implied, with respect to the land, improvements, and real and personal property, including without limitation, any warranty of habitability, warranty of merchantability, or warranty of fitness for a particular use. The Seller will not be required to make any repairs or pay any expenses concerning the land, the improvements, the real property, or the personal property. 16. Buyer’s Representations and Warranties. Buyer hereby represents and warrants to Seller, both as of the date hereof and as of the closing date, that Buyer has full power and authority to enter into this Agreement and to carry out the transactions contemplated by this Agreement. 17. Buyer's Remedies. If the Seller accepts the offer contained in this Agreement but refuses or neglects to consummate the transaction within the time period provided in this Agreement, the Buyer may demand immediate repayment of all monies that Buyer has paid as earnest money, and upon the return of such money the rights and duties of Buyer and Seller under this Agreement shall be terminated; or demand that Seller specifically perform Seller's obligations under this Agreement. 18. Seller's Remedies. If the Seller accepts the offer contained in this Agreement and Buyer refuses or neglects to consummate the transaction within the time period provided in this Agreement, the Seller may declare the earnest money paid by Buyer be forfeited; or demand that Buyer specifically perform Buyer's duties and obligations under this Agreement. 186 Seller____ Buyer_____ -7- 19. Survival. All representations and warranties of the parties herein and covenants to be kept and performed by the parties hereto shall survive the closing and consummation of this transaction. 20. Binding. This Agreement shall be binding upon and inure to the benefit of the parties hereto, their successors in interest and assigns. In the event of a dispute, the same shall be resolved by binding arbitration with the prevailing party entitled to reasonable attorney’s fees and costs as found and awarded by the arbitrator. 21. Assignability. Either party may assign all or part of its interest in this Agreement at any time without the other party’s consent. 22. Entire Agreement. This Agreement is the entire Agreement between the parties and supersedes any prior or contemporaneous oral agreements or representations between the parties, and that this Agreement may not be modified orally and any Amendment or Modification must be in writing and signed by the parties hereto. 23. Time is of the Essence. TIME IS OF THE ESSENCE of all terms under the Agreement. All references to “days” shall be calendar days unless otherwise specified herein. “Business Days” are defined as all days except Saturdays, Sundays, and holidays. Any performance which is required to be completed on a Saturday, Sunday or a holiday can be performed on the next working day. 24. No Brokerage Commission. Neither party is under any agreement with a real estate broker, which would create an obligation to pay a real estate commission in connection with this sale. 187 Seller____ Buyer_____ -8- WITNESS our hands and seals the day and year first above written. SELLER: BUYER: DLP LLC THE CITY OF BOZEMAN By:_____________________________ By:_______________________________ Its:_____________________________ Its:_______________________________ 188 189 190 191 192 193 194 195 196 197 198 199 200 201 202 203 204 205 206 207 208 209 210 211 212 213 214 215 216 217 218 219 220 221 222 223 224 225 226 227 228 229 230 231 232 233 234 235 236 237 238 239 240 241 242 243 244 245 246 247 248 249 250 251 252 253 254 924 Stoneridge Drive Suite #1, Bozeman, MT 59718 Phone (406)586-1978 - Fax (406)587-7804 Title Officer: Jill Campbell - jcampbell@gofirstam.com To: City of Bozeman Order No.: 621284-BZ P.O. Box 1230 Bozeman, MT 59771 Attention: Bienvenue, Heather Your Reference: Re: Property Address: 801 North Rouse Avenue, Bozeman, MT 59715 ENCLOSED please find the following: • Title Commitment • Required Affidavit(s) Should you have any questions or need further assistance, please contact the undersigned. We appreciate the opportunity to serve you. Sincerely, Jill Campbell enc. This commitment was prepared for you by: 255 File No.: 621284-BZ Commitment for Title Insurance ALTA PLAIN LANGUAGE COMMITMENT AGREEMENT TO ISSUE POLICY We agree to issue a policy to you according to the terms of the Commitment. When we show the policy amount and your name as the proposed insured in Schedule A, this Commitment becomes effective as of the Commitment Date shown in Schedule A. If the Requirements shown in this Commitment have not been met within six (6) months after the Commitment Date, our obligation under this Commitment will end. Also, our obligation under this Commitment will end when the policy is issued and then our obligation to you will be under the policy. Our obligation under this Commitment is limited by the following: The Provisions in Schedule A. The Requirements in Schedule B-I. The Exceptions in Schedule B-II. The Conditions. This Commitment is not valid without SCHEDULE A and Sections I and II of SCHEDULE B. CONDITIONS 1. DEFINITIONS (a) "Mortgage" means mortgage, deed of trust or other security instrument. (b) "Public Records" means title records that give constructive notice of matters affecting your title according to the state statutes where your land is located. 2. LATER DEFECTS The Exceptions in Schedule B - Section II may be amended to show any defects, liens or encumbrances that appear for the first time in the Public Records or are created or attach between the Commitment Date and the date on which all of the Requirements (a) and (c) of Schedule B - Section I are met. We shall have no liability to you because of this amendment. 3. EXISTING DEFECTS If any defects, liens or encumbrances existing at Commitment Date are not shown in Schedule B, we may amend Schedule B to show them. If we do amend Schedule B to show these defects, liens or encumbrances, we shall be liable to you according to Paragraph 4 below unless you knew of this information and did not tell us about it in writing. 4. LIMITATION OF OUR LIABILITY Our only obligation is to issue to you the Policy referred to in this Commitment, when you have met its Requirements. If we have any liability to you for any loss you incur because of an error in this Commitment, our liability will be limited to your actual loss caused by your relying on this Commitment when you acted in good faith to: Comply with the Requirements shown in Schedule B - Section I or Eliminate with our written consent any Exceptions shown in Schedule B - Section II. We shall not be liable for more than the Policy Amount shown in Schedule A of this Commitment and our liability is subject to the terms of the Policy form to be issued to you. 5. CLAIMS MUST BE BASED ON THIS COMMITMENT Any claim, whether or not based on negligence, which you may have against us concerning the title to the land must be based on this Commitment and is subject to its terms. Issued through the Office of: First American Title Company 924 Stoneridge Drive Suite #1, Bozeman, MT 59718 Authorized Signature ORT Form 4311 ALTA Plain Language Title Insurance Commitment 06/06 256 Commitment for Title Insurance ALTA PLAIN LANGUAGE COMMITMENT INFORMATION The Title Insurance Commitment is a legal contract between you and the Company. It is issued to show the basis on which we will issue a Title Insurance Policy to you. The Policy will insure you against certain risks to the land title, subject to the limitations shown in the Policy. The Company will give you a sample of the Policy form, if you ask. The Policy contains an arbitration clause. All arbitrable matters when the Amount of Insurance is $2,000,000 or less shall be arbitrated at the option of either the Company or you as the exclusive remedy of the parties. You may review a copy of the arbitration rules at <http://www.alta.org/>. The Commitment is based on the land title as of the Commitment Date. Any changes in the land title or the transaction may affect the Commitment and the Policy. The Commitment is subject to its Requirements, Exceptions and Conditions. THIS INFORMATION IS NOT PART OF THE TITLE INSURANCE COMMITMENT. YOU SHOULD READ THE COMMITMENT VERY CAREFULLY. If you have any questions about the Commitment, contact First American Title Company (406)586-1978 TABLE OF CONTENTS INFORMATION Front Page AGREEMENT TO ISSUE POLICY Back Page CONDITIONS Back Page SCHEDULE A Insert 1. Commitment Date 2. Policies to be Issued, Amounts and Proposed Insureds 3. Interest in the Land and Owner 4. Description of the Land SCHEDULE B Insert SCHEDULE B - I REQUIREMENTS Insert SCHEDULE B - II EXCEPTIONS Insert ORT Form 4311 ALTA Plain Language Title Insurance Commitment 06/06 257 ORT Form 4311B ALTA Plain Language Commitment for Title Insurance 6/06 FILE NO.: 621284-BZ FIRST COMMITMENT SCHEDULE A 1. Commitment Date : January 24, 2017 at 7:30 A.M. 2. Policy or Policies to be issued: Policy Amount Premium Amount Owner's Policy Standard Owner's Policy (6/17/06) ORT Form 4309 $225,000.00 $ 634.13 (Premium amount reflects $211.37 credit) Proposed Insured: To Be Determined 3. A fee simple interest in the land described in this Commitment is owned, at the Commitment Date, by: DLP, LLC 4. The land referred to in this Commitment is described as follows: Lots 11 and 12, Block 29 of Imes Addition to the City of Bozeman, Gallatin County, Montana, according to the official plat thereof on file and of record in the office of the County Clerk and Recorder of Gallatin County, Montana. [Plat Reference: C-41] EXCEPTING, therefrom: Bargain and Sale Deed recorded December 7, 2015, Instrument No. 2532291. Commonly known as: 801 North Rouse Avenue, Bozeman, MT 59715 = 258 = ORT Form 4311B ALTA Plain Language Commitment for Title Insurance 6/06 FILE NO.: 621284-BZ SCHEDULE BI AND BII SCHEDULE B-SECTION I REQUIREMENTS The following requirements must be met: (a) Pay the agreed amounts for the interest in the land and/or the mortgage to be insured. (b) Pay us the premiums, fees and charges for the policy. (c) Documents satisfactory to us creating the interest in the land and/or the mortgage to be insured must be signed, delivered and recorded. (d) You must tell us in writing the name of anyone not referred to in this Commitment who will get an interest in the land or who will make a loan on the land. We may then make additional requirements or exceptions. (e) Release(s) or Reconveyance(s) of items(s) 14. (f) If any document in the completion of this transaction is to be executed by an attorney-in-fact, the Power of Attorney must be submitted for review prior to closing. (g) You must give us the following information: 1. Any off record leases, surveys, etc. 2. Statement(s) of identity, all parties. 3. Other. = 259 = ORT Form 4311B ALTA Plain Language Commitment for Title Insurance 6/06 FILE NO.: 621284-BZ SCHEDULE B -SECTION II EXCEPTIONS The policy or policies to be issued will contain exceptions to the following unless the same are disposed of to the satisfaction of the Company. PART I: 1. Taxes or assessments which are not shown as existing liens by the records of any taxing authority that levies taxes or assessments on real property or by the public records. 2. Any facts, rights, interests, or claims which are not shown by the public records but which could be ascertained by an inspection of said land or by making inquiry of persons in possession thereof. 3. Easements, claims of easement or encumbrances which are not shown by the public records. 4. Any encroachment, encumbrance, violation, variation, or adverse circumstance affecting the title including discrepancies, conflicts in boundary lines, shortage in area, or any other facts that would be disclosed by an accurate and complete land survey of the land, and that are not shown in the public records. 5. (a) Unpatented mining claims; (b) reservations or exceptions in patents or in Acts authorizing the issuance thereof; (c) water rights, claims or title to water, whether or not the matters excepted under (a), (b), or (c) are shown by the public records. 6. Any liens, or rights to a lien, for services, labor or material theretofore or hereafter furnished, imposed by law and not shown by the public records. 7. Any right, title or interest in any minerals, mineral rights or related matters, including but not limited to oil, gas, coal and other hydrocarbons, sand, gravel or other common variety materials, whether or not shown by the public records. 8. County road rights-of-way not recorded and indexed as a conveyance of record in the office of the Clerk and Recorder pursuant to Title 70, Chapter 21, M.C.A., including, but not limited to any right of the Public and the County of Gallatin to use and occupy those certain roads and trails as depicted on County Surveyor's maps on file in the office of the County Surveyor of Gallatin County. 9. 2017 County taxes and special assessments are a lien; amounts not yet determined or payable. The first one-half becomes delinquent after November 30th of the current year, the second one-half becomes delinquent after May 31st of the following year. General taxes as set forth below. Any amounts not paid when due will accrue penalties and interest in addition to the amount stated herein: Year 1st Half 2nd Half Parcel Number 2016 $794.36, paid $787.74, paid RGH1715 260 10. 2016-2017 City taxes and special assessments are a lien; amounts not yet determined or payable. The first one-half becomes delinquent after November 30th of the current year, the second one-half becomes delinquent after May 31st of the following year. General taxes as set forth below. Any amounts not paid when due will accrue penalties and interest in addition to the amount stated herein: Year 1st Half 2nd Half Parcel Number 2016-2017 $101.77, paid $101.77, paid 29330 11. Easement for utilities and other purposes as disclosed by an inspection of the land. 12. Terms, conditions and provisions contained in Bargain and Sale Deed recorded December 7, 2015, Instrument No. 2532291 13. All matters, covenants, conditions, restrictions, easements and any rights, interests or claims which may exist by reason thereof, disclosed by the recorded plat of said subdivision, but deleting any covenant, condition or restriction indicating a preference, limitation or discrimination based on race, color, religion, sex, handicap, familial status, or national origin to the extent such covenants, conditions or restrictions violate 42 USC 3604(c). 14. Montana Trust Indenture, to secure an original indebtedness of $175,000.00, dated December 16, 2016 and any other amounts and/or obligations secured thereby Recorded: December 16, 2016, Instrument No. 2566520 Grantor: DLP, LLC Trustee: American Land Title Company Beneficiary: Thail A Davis = 261 = INFORMATIONAL NOTES A. As an accommodation and not part of this commitment, no liability is assumed by noting the following conveyances describing all or a part of the subject property, which have been recorded within the last 24 months: None B. In addition to standard County recording fees, an electronic filing fee of $5.00 per document may be charged. C. Other than as shown in Schedule B; we find no Judgment Liens, State Tax Liens, Federal Tax Liens or Child Support Liens of record which attach to the name(s) or interest of the vested owner and/or proposed insured owner/borrower. = 262 = FACTS WHAT DOES OLD REPUBLIC TITLE DO WITH YOUR PERSONAL INFORMATION? Why? Financial companies choose how they share your personal information. Federal law gives consumers the right to limit some but not all sharing. Federal law also requires us to tell you how we collect, share, and protect your personal information. Please read this notice carefully to understand what we do. What? The types of personal information we collect and share depend on the product or service you have with us. This information can include: • Social Security number and employment information • Mortgage rates and payments and account balances • Checking account information and wire transfer instructions When you are no longer our customer, we continue to share your information as described in this notice. How? All financial companies need to share customers’ personal information to run their everyday business. In the section below, we list the reasons financial companies can share their customers’ personal information; the reasons Old Republic Title chooses to share; and whether you can limit this sharing. Reasons we can share your personal information Does Old Republic Title share? Can you limit this sharing? For our everyday business purposes — such as to process your transactions, maintain your account(s), or respond to court orders and legal investigations, or report to credit bureaus Yes No For our marketing purposes — to offer our products and services to you No We don’t share For joint marketing with other financial companies No We don’t share For our affiliates’ everyday business purposes — information about your transactions and experiences Yes No For our affiliates’ everyday business purposes — information about your creditworthiness No We don’t share For our affiliates to market to you No We don’t share For non-affiliates to market to you No We don’t share 263 How does Old Republic Title protect my personal information? To protect your personal information from unauthorized access and use, we use security measures that comply with federal law. These measures include computer safeguards and secured files and buildings. For more information, visit http://www.OldRepublicTitle.com/newnational/Contact/privacy. How does Old Republic Title collect my personal information? We collect your personal information, for example, when you: • Give us your contact information or show your driver’s license • Show your government-issued ID or provide your mortgage information • Make a wire transfer We also collect your personal information from others, such as credit bureaus, affiliates, or other companies. Why can’t I limit all sharing? Federal law gives you the right to limit only: • Sharing for affiliates’ everyday business purposes - information about your creditworthiness • Affiliates from using your information to market to you • Sharing for non-affiliates to market to you State laws and individual companies may give you additional rights to limit sharing. See the "Other important information" section below for your rights under state law. Affiliates Companies related by common ownership or control. They can be financial and nonfinancial companies. • Our affiliates include companies with an Old Republic Title name, and financial companies such as Attorneys' Title Fund Services, LLC, Lex Terrae National Title Services, Inc., Mississippi Valley Title Services Company, and The Title Company of North Carolina. Non-affiliates Companies not related by common ownership or control. They can be financial and non-financial companies. • Old Republic Title does not share with non-affiliates so they can market to you Joint marketing A formal agreement between non-affiliated financial companies that together market financial products or services to you. • Old Republic Title doesn't jointly market. 264 Oregon residents only: We are providing you this notice under state law. We may share your personal information (described on page one) obtained from you or others with non-affiliate service providers with whom we contract, such as notaries and delivery services, in order to process your transactions. You may see what personal information we have collected about you in connection with your transaction (other than personal information related to a claim or legal proceeding). To see your information, please click on "Contact Us" at www.oldrepublictitle.com and submit your written request to the Legal Department. You may see and copy the information at our office or ask us to mail you a copy for a reasonable fee. If you think any information is wrong, you may submit a written request online to correct or delete it. We will let you know what actions we take. If you do not agree with our actions, you may send us a statement. American First Abstract, LLC American First Title & Trust Company American Guaranty Title Insurance Company Attorneys’ Title Fund Services, LLC Compass Abstract, Inc. eRecording Partners Network, LLC Genesis Abstract, LLC Kansas City Management Group, LLC L.T. Service Corp. Lenders Inspection Company Lex Terrae National Title Services, Inc. Lex Terrae, Ltd. Mara Escrow Company Mississippi Valley Title Services Company National Title Agent’s Services Company Old Republic Branch Information Services, Inc. Old Republic Diversified Services, Inc. Old Republic Exchange Company Old Republic National Title Insurance Company Old Republic Title and Escrow of Hawaii, Ltd. Old Republic Title Co. Old Republic Title Company of Conroe Old Republic Title Company of Indiana Old Republic Title Company of Nevada Old Republic Title Company of Oklahoma Old Republic Title Company of Oregon Old Republic Title Company of St. Louis Old Republic Title Company of Tennessee Old Republic Title Information Concepts Old Republic Title Insurance Agency, Inc. Old Republic Title, Ltd. Republic Abstract & Settlement , LLC Sentry Abstract Company The Title Company of North Carolina Title Services, LLC Trident Land Transfer Company, LLC 265 266 267 268 269 270 271 272 273 274 275 276 277 278 279 280 281 282 283 284