3132 50th street, lubbock, texas property information package
DESCRIPTION
Property Information Package for our upcoming auction at 3132 50th Street, Lubbock, Texas. 5,894+/- Square Foot Office BuildingTRANSCRIPT
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Property Information Package For
3132 50th Street
Lubbock, Lubbock County, TX
Absolute Auction Schedule:
Wednesday, September 21st
Registration Begins: 1 PM CST Auction Time: 2 PM CST
To Schedule a Showing: Office Phone No. 806-553-1960
Auction Location: On-Site
www.AllianceAuctioneers.com
Auction Contact: United Country—Alliance Auction & Realty
877-271-7891 Brent Graves—Auctioneer
806-553-1960
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Table of Contents
Page 1 Cover Page Page 2 Auction Details
Page 3 Table of Contents Page 4 Letter to Bidders Page 5 Auction Terms & Conditions Page 7 Property Overview
Page 9 Property Photos Page 13 Maps Page 15 Preliminary Title Commitment
Page 25 Tax Certificate Page 27 Appraisal Page 30 Sample Earnest Money Contract
Page 48 Information About Brokerage Services Page 49 Contact Information
www.AllianceAuctioneers.com
All Prospective Bidders:
Each of us at United Country—Alliance Auction & Realty are honored that Fernando Bustos,
Receiver for Benny L. Judah and Excel Lease Fund, Inc. and Stephen T. Kennedy, has decided
to utilize the auction method of marketing and the services offered by our company to sell the
real estate in this Civil Action case. Furthermore, we thank you for your interest and welcome
your attendance and participation in the auction process.
The property will be offered in one individual tract. This unique method of selling real estate
allows all interested parties to compete equally in an open, fair, and public forum.
We are providing this Property Information Package in an effort to assist you in your purchasing
decision. You are encouraged to have any buyer representatives or lenders that may need impor-
tant information to contact our office at 1-877-271-7891.
This Property Information Package (PIP) has been carefully prepared to assist you in your pre-
auction due diligence. Please carefully review the property information, disclaimers, and sample
earnest money contract as well as the terms and conditions of the auction.
Please refer to our website at www.allianceauctioneers.com for the most current information
about this and future auctions. Should you have any questions or need additional information,
please feel free to contact our office at 806-553-1960 or toll free 877-271-7891 or by email at
Good Luck at the Auction!!
Biddingly yours,
Brent R. Graves
Owner/Auctioneer
BRG/ck
2744 Duniven Circle
Amarillo, TX 79109 877-271-7891
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www.AllianceAuctioneers.com
Auction Terms & Conditions
PROCEDURE: Property will be offered as one individual tract. BUYER’S PREMIUM: A 10% Buyer’s Premium is in effect for all purchases. The Buyer’s Premium will be added to the ―High Bid Price‖ to determine the ―Sales Price‖ or ―Contract Price‖. DOWN PAYMENT: Ten percent (10%) down payment on the day of the auction, upon signing a purchase agreement immediately following the close of bidding. The down payment may be paid in the form of cash, personal check, business check, cashier’s check, or wire transfer. The remainder of the purchase price is payable in cash at closing. YOUR BIDDING IS NOT CONTINGENT UPON FINANCING, so be sure you have arranged financing, if needed, and are capable of paying cash at closing. ACCEPTANCE OF BID PRICES: This is an ABSOLUTE AUCTION, all successful bidders will sign a purchase agreement at the auction site immediately following the close of the auction. REAL ESTATE TAXES AND ASSESMENTS: The 2011 Property Taxes will be prorated to the date of closing. The buyer will be responsible for any ―rollback‖ in the property taxes. The buyer(s) will be responsible for all additional taxes imposed after the date of execution of the Receiver’s Deed by Seller as a result of any change in use of any part of the subject property, the intent being that all such additional taxes shall be the responsibility of the buyer and the buyer’s heirs, personal representatives and assigns. BROKER PARTICIPATION: A 3% commission of the submitted written bid, 1% commission of any amount above the written maximum pre-bid will be paid to the properly licensed Broker whose prospect purchases and closes on the real estate per United Country – Alliance Auction & Realty’s cooperating Broker Guidelines. NO Cooperating Broker fees will be paid without a written opening bid. Under no circumstance can a Broker be a principal or an owner or officer of any entity AND a Cooperating Broker in the same transaction. To obtain these guidelines, please contact the auction office prior to September 19th. CLOSING: Will take place on or before Monday, October 31st, 2011 or as soon thereafter as appli-cable closing documents and surveys (if needed) are completed. POSSESSION: Full possession will be given at closing. Early possession will not be granted prior to closing. TITLE: Seller shall execute a Receiver’s Deed conveying the real estate to the buyer(s). Buyer(s) will be responsible for all expenses related to acquiring an Owner’s Policy of Title Insurance and/or a mortgagee’s title policy, if desired or required.
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www.AllianceAuctioneers.com
Auction Terms & Conditions (cont.) EASEMENTS AND LEASES: Sale of the property is subject to any and all easements of record and any and all leases. SURVEY: Seller will NOT pay for the cost of a survey, nor will closing be delayed in the absence of a sur-vey. All advertised acreages, square footages and other measurements are approximate and have been estimated based on current legal descriptions, aerial photos or other reliable sources and should not be considered accurate or used as boundary lines or legal descriptions. AGENCY: Alliance Auction Group, LLC dba United Country – Alliance Auction & Realty and its representa-tives are exclusive agents of the seller. DISCLAIMER AND ABSENCE OF WARRANTIES: All information contained in this brochure and all re-lated materials are subject to the terms and conditions outlined in the agreement to purchase. AN-NOUNCEMENTS MADE BY THE AUCTIONEER AT THE AUCTION PODIUM DURING THE TIME OF THE SALE WILL TAKE PRECEDENCE OVER ANY PREVIOUSLY PRINTED MATERIAL OR ANY OTHER ORAL STATEMENTS MADE. The property is being sold on an ―AS IS, WHERE IS‖ basis, and no warranty or representation either expressed or implied, concerning the property is made by the seller or the auction company. Each potential bidder is responsible for conducting his or her own independent inspec-tions, investigations, inquiries, and due diligence concerning the property. The information provided is be-lieved to be accurate, but is subject to verification by all parties relying on it. No liability for its accuracy, er-rors or omissions is assumed by the seller or the auction company or any of its respective representatives. All sketches and dimensions are approximate. All acreages, square footages and other measurements are approximate and have been estimated based on legal descriptions, aerial photographs or other sources deemed reliable. Conduct at the auction and increments of bidding are at the direction and discretion of the auctioneer. The Seller and Auction Company reserve the right to preclude any person from bidding if there is any question as to the person’s credentials, fitness, etc. All decisions of the auctioneer are final. SPECIFIC PERFORMANCE: All bidders agree and understand that bids submitted are binding offers and further agree to complete the transaction. Auctioneer and/or Seller reserve the right to pursue any default-ing bidder through legal action. NEW DATA, CORRECTIONS AND CHANGES: Please arrive prior to scheduled auction time to inspect any announcements regarding any changes, corrections or additions to the property information. NOTE: Video taping, flash photography and/or public announcements will be allowed on auction day ONLY with prior approval from United Country—Alliance Auction & Realty SELLER: Fernando M. Bustos, Receiver for Benny L. Judah and Excel Lease Fund, Inc. Civil Action No. 5-09CV0087-C, In the United States District Court for the Northern District of Texas, Lubbock Division and Stephen T. Kennedy
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www.AllianceAuctioneers.com
Property Overview
Great opportunity! 5,894+/- sf Office Building with numerous possi-
bilities up for auction! It is located on the northeast corner of the in-
tersection of 50th Street and Gary. It is located across from the Mon-
terey High School, AutoZone, and Rosas Café!
Building: 5,894+/- sf
Built in 1977
Remodeled in the 1990’s
Modified bit roof is approximately 10 years old
Brock and stone exterior
3 Separate offices
3 Separate HVAC units (all on 1 meter that is prorated per square
footage)
13 Individual offices
2 Separate entrances
1 Men’s bathroom
1 Women’s bathroom
Has plenty of storage
Carpeted
Great wood finishing throughout
18 Parking spots
Asphalt paved parking
18,375+/- sf of Land area
Historically, the building has been leased for $8.00/sf
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www.AllianceAuctioneers.com
Property Overview Continued
Legal Description: All of Lots Eleven (11) and Twelve (12) and the
West Thirty Feet (W 30’) of Lot Thirteen (13), Block Fifteen (15),
HULIN HEIGHTS ADDITION, SECOND INSTALLMENT, an Addition
to the City of Lubbock, Lubbock County, Texas, according to the
Map, Plat, and/or Dedication Deed thereof recorded in Volume
479, Page 617, Deed Records of Lubbock County, Texas.
2010 Approximate Taxes: $6,236.61
Zoning: C-2A, Commercial
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STATE OF TEXAS BIDDER #
COUNTY OF LUBBOCK AUCTION PROPERTY NO (s)
AUCTION REAL ESTATE SALES CONTRACT
This Auction Real Estate Sale Contract ("Sale Contract"), made this the 21st day of
September, 2011, by and between Fernando M. Bustos, Receiver for Benny L. Judah and Excel
Lease Fund, Inc., Civil Action No. 5-09CV0087-C, In the United States District Court for the
Northern District of Texas, Lubbock Division, whose address is P.O. Box 1980, Lubbock, Texas
79408 and Stephen T. Kennedy, whose address is PO Box 64308, Lubbock, Texas 79464 (together,
"Seller"), and ______________________________________________________ (whether singular
or plural interchangeably referred to herein as "Purchaser," "Buyer" or "Bidder"), whose address is
.
1. AGREEMENT TO PURCHASE. In consideration of the sum as set forth in Paragraph No. 2
below, the mutual covenants and obligations herein set forth, for good and valuable consideration,
the receipt, adequacy and sufficiency of which are hereby mutually acknowledged, Seller agrees to
sell to Purchaser, by Receivers Deed, and Purchaser agrees to purchase from Seller, pursuant to the
terms and conditions hereinafter set forth, the real property described as
Legal Description Attached, otherwise known as 3132 50th
Street, Lubbock, Texas 79413, which is
located in the County of Lubbock, State of Texas (singular or plural interchangeably referred to
herein as "Property" or "Properties"). The Auction property relates to the specific Property being
sold which is identified in the "Auction Inventory") and more particularly described in the legal
description as contained in the Title Report prepared by Lubbock Abstract & Title Company (the
"Title Report") attached to this Sales Contract and designated "Attachment II".
2. a) HIGH BID PRICE: ..............................................................................$__________
10% BUYER'S PREMIUM .................................................................$__________
SUBTOTAL CONTRACT PRICE ......................................................$__________
b) EARNEST MONEY DEPOSIT (10%) ................................................$__________
In U.S. Funds, based on the Total Contract Price,
to be held in a non-interest bearing escrow
account by Escrow/Closing Agent
c) BALANCE OF PURCHASE PRICE: .................................................$__________
In U.S. Funds, due at closing, not including
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Purchaser's closing costs or financing costs,
prepaid or prorations, in immediate available
cash or by confirmed wire transfer
3. CLOSING. Closing will be conducted at the Offices of Lubbock Abstract & Title Co.
("Escrow/Closing Agent"), located at 1216 Texas Avenue, Lubbock, Texas 79401-4032; Telephone
806-763-1204; Facsimile 806-763-2207; on or before 5:00 p.m. (CT) on October 21st, 2011 (the
"Closing Date"). The contact person is Gail Wilcoxson. At Closing, Seller shall deliver the
Purchaser a Receivers Deed, which shall convey fee simple title to the Property. Possession of the
Property shall be granted at closing, subject to those matters contained in any title commitment and
this Sales Contract. Time is of the essence in this Sales Contract.
4. TAXES AND OTHER PRORATIONS. The current year's ad valorem taxes and
assessments, as applicable, and homeowners association fees, if any, shall be prorated at closing.
5. PROPERTY TAX DISCLOSURE SUMMARY. Ad valorem taxes on the Property for the
calendar year of closing will be prorated between Purchaser and Seller as of the Closing Date. If the
amount of taxes for the calendar year of closing is not known on the Closing Date, the proration will
be based on taxes for the previous tax year. Seller will promptly notify Purchaser of all notices of
proposed or final tax valuations and assessments that Seller receives after the Effective Date and
after closing. All taxes due as of closing will be paid at closing. If the Property has been the subject
of special valuation and reduced tax assessment pursuant to the provisions of Chapter 23, Subchapter
D of the Texas Tax Code with respect to any period before the closing and additional taxes are
assessed pursuant to Section 23.55 thereof, the following will apply:
(a) If Seller's change in use of the Property prior to closing or denial of a special use valuation
on the Property claimed by Seller results in assessment of additional taxes, penalties or interest
("Roll-back Taxes") for any period prior to closing, such assessment will be the obligation of Seller.
(b) If this sale or Purchaser's use of the Property after closing results in the assessment of
Roll-back Taxes for periods prior to closing, such assessment will be the obligation of Purchaser.
(c) Any questions you may have concerning valuation or taxation of Property, you should
immediately contact the Lubbock County, Texas property appraiser's office for information.
6. CLOSING COSTS.
(a) Seller's Costs. Seller shall solely pay for release of existing liens, including prepayment
penalties and recording fees, release of Seller's loan liability, tax statements or certificates, as well as
Seller's attorney's fees.
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(b) Purchaser's Costs. Purchaser shall solely pay the expense of an owner policy of title
insurance, the fees associated with loan origination, loan application and loan preparation, as well as
preparation of the deed, recording fees, copies, mortgagee title policy with endorsements as required
by lender, loan related inspection fees, photos, amortization schedules, the escrow fee, transfer fee
for association membership for utility services, all prepared items including required premiums for
flood and hazard insurance, reserve deposits for insurance, ad valorem taxes and special
governmental assessments, homeowner's association fees, final compliance inspection, courier fees,
underwriting fee and wire transfer, expenses incident to any loan, and Purchaser's attorney fees.
7. TERMS. This is a Cash sale with TEN PERCENT (10%) down payment and the balance
shall be due at closing. This sale is not contingent upon financing.
8. EARNEST MONEY DEPOSIT, ESCROW/CLOSING AGENT. Purchaser and Seller hereby
acknowledge and agree that Escrow/Closing Agent shall hold and deliver the Earnest Money
Deposit, in accordance with the terms and conditions of this Sales Contract, and that Escrow/Closing
Agent shall be relieved of all liability in the event Escrow/Closing Agent makes a disbursement of
the Earnest Money Deposit in accordance with the terms and provisions of this Sales Contract.
Escrow/Closing Agent shall be relieved from any responsibility or liability in connection with the
discharge of any Escrow/Closing Agent's duties hereunder provided that Escrow/Closing Agent
exercises ordinary and reasonable care in the discharge of said duties.
9. EARNEST MONEY DISPUTE. Notwithstanding any termination of this Sales Contract,
Purchaser and Seller agree that, in the event of any controversy regarding the Earnest Money Deposit
and things of value held by Escrow/Closing Agent (unless mutual written instructions are received
by the holder of the Earnest Money Deposit and things of value), Escrow/Closing Agent shall not be
required to take any action but may await any proceeding, or at Escrow/Closing Agent's option and
sole discretion, may interplead all parties and deposit any moneys or things of value into the Court
and shall recover court costs and reasonable attorney's fees.
10. DISCLAIMER OF WARRANTIES "AS-IS, WHERE IS " CONVEYANCE.
(a) PURCHASER WARRANTS AND ACKNOWLEDGES TO AND AGREES WITH
SELLER, UNITED COUNTRY ALLIANCE AUCTION & REALTY ("ALLIANCE" ALSO
REFERRED TO HEREIN AS EITHER "AUCTION COMPANY" OR "AUCTIONEER") THAT
PURCHASER IS PURCHASING THE PROPERTY IN AN "AS-IS, WHERE IS" CONDITION
"WITH ALL FAULTS" AND SPECIFICALLY AND EXPRESSLY WITHOUT ANY
WARRANTIES, REPRESENTATIONS OR GUARANTIES, EITHER EXPRESS OR IMPLIED,
OF ANY KIND, NATURE, OR TYPE WHATSOEVER, FROM OR ON BEHALF OF THE
SELLER.
(b) PURCHASER ACKNOWLEDGES TO AND AGREES WITH SELLER AND
AUCTION COMPANY THAT WITH RESPECT TO THE PROPERTY, SELLER AND AUCTION
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COMPANY HAVE NOT, DO NOT, AND WILL NOT MAKE ANY WARRANTIES OR
REPRESENTATIONS, EXPRESS OR IMPLIED, OR ARISING BY OPERATION OF LAW,
INCLUDING BUT IN NO WAY LIMITED TO, ANY WARRANTY AS TO THE VALUE,
PHYSICAL CONDITION, SQUARE FOOTAGE, ENVIRONMENTAL CONDITION
(INCLUDING BUT NO LIMITED TO WET LANDS, LEAD BASE PAINT, RADON GAS,
ASBESTOS), ZONING, GOOD REPAIR, OPERABILITY, HABITABILITY, TENANTABILITY,
SUITABILITY, MERCHANTABILITY, PROFITABILITY, MARKETABILITY, AVAILABILITY
OF UTILITIES AND ACCESS THEREOF, PAST OR PRESENT COMPLIANCE WITH ANY
RULES, REGULATIONS, COVENANTS OR RESTRICTIONS, DEVELOPMENT POTENTIAL
OR FITNESS FOR A PARTICULAR USE OR PURPOSE OF THE PROPERTY.
(c) Purchaser acknowledges that it is Purchaser's responsibility to make such legal, factual
and other inquiries and investigations, as Purchaser deems necessary, desirable or appropriate with
respect to the Property. Purchaser(s) acknowledge(s) that they have executed this Sales Contract
based solely on their own independent due diligence investigations and findings, and not in reliance
on any information provided by SELLER, AUCTION COMPANY or their affiliates, agents, officers,
employees or representatives. Purchaser acknowledges that Purchaser has not relied, and is not
relying, upon any information, document, sales brochures or other literature, maps or sketches,
projection, pro forms, statement, representation, guarantee or warranty (whether express or implied,
oral or written, material or immaterial) that may have been given by or made by or on behalf of the
Seller or the Auction Company.
(d) Purchaser shall look only to Seller, not to the Auction Company, as to all matters
regarding this Sales Contract. The Auction Company shall not be responsible or liable in any way if
the Seller fails or refuses to or cannot close in accordance with this Sales Contract.
(e) Without in any way limiting the generality of the preceding paragraphs (a) through (d),
Purchaser specifically acknowledges and agrees that Purchaser hereby waives, releases and
discharges any claim it has, might have had, or may have against the Seller or Auctioneer with
respect to the condition of the Property, either patent or latent. Purchaser's ability or inability to
obtain or maintain building permits, either temporary or final certificates of occupancy or other
permits or licenses for the use or operation of the Property, and/or certificates of compliance for the
Property, the actual or potential income or profits to be derived from the Property, the real estate
taxes or assessments now or hereafter payable thereon, the compliance with any environmental
protection, pollution or land use laws, rules, regulations or requirements, and any other state of facts
which exist with respect to the Property.
11. PROPERTY INSPECTION.
(a) It is the Purchaser's sole responsibility to perform all inspections (physical, legal,
economic, environmental, archeological or otherwise) on the Property and to be satisfied as to its
condition prior to making an offer on the Property; review all property information and due diligence
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materials; independently verify any information they deem important including information available
in public records; and inquire of public officials as to the applicability of and compliance with land
use and environmental laws, building ordinances, zoning, health & safety codes, and any other local,
state or federal laws and regulations. Purchaser acknowledges that prior to the date of this Sales
Contract, Purchaser has been afforded ample time and access to the Property to conduct any and all
inspections of the Property desired by Purchaser.
(b) Purchaser is responsible for the costs of all inspections, surveys, engineering reports,
environmental studies, including, but not limited to, lead-based paint tests, or for any other work
performed at Purchaser's request and Purchaser shall pay for any damage which occurs to the
Property as a result of such activities. Purchaser shall not permit any claims or liens of any kind
against the Property for inspections, surveys, engineering reports, or for any other work performed on
the Property at Purchaser's request. Purchaser agrees to indemnify, protect and hold Seller and
Auction Company harmless against any liability, damage, cost or expense incurred, directly or
indirectly, by Seller as result of Purchaser's inspection, examination, or survey of the Property, either
prior to, on or after the date hereof. This indemnity includes Seller's right to recover all costs and
expenses incurred by Seller to enforce this section, including Seller's reasonable attorney's fees.
Purchaser agrees to repair any damage caused by such inspections and to restore the Property to its
condition prior to the inspection. This provision shall survive the closing and any termination of this
Sales Contract.
12. TITLE.
(a) Purchaser hereby agrees to accept title to the Property subject to (i) all standard exclusions
and printed exceptions set forth in the owner's policy of title insurance, including all matters that
would be disclosed by a current and accurate survey of the Property; (ii) liens for taxes not yet due
and payable' (iii) easements for public utilities affecting the Property; (iv) all other easements or
claims to easements, covenants, restrictions and rights-of-way affecting the Property; (v) rights and
claims of parties in possession; and (vi) all title exceptions referenced in the Title Report (the
foregoing title matters are herein referred to as the "Permitted Title Exceptions"). Any applicable
zoning ordinances, other land use laws and regulations, together with taxes for the current year and
those matters, if any, which are waived by Purchaser pursuant to this Paragraph 13, shall also be
deemed Permitted Title Exceptions.
(b) Seller covenants that it will not voluntarily create or cause a lien or encumbrance to attach
to the Property between the date of this Sales Contract and Closing, except liens or encumbrances
which Seller will satisfy at Closing.
(c) Seller discloses to Purchaser the following information in this section about the Property
on the exclusive basis that Seller and Auction Company fully and unconditionally disclaim any
guaranty or warranty whatsoever for accuracy and correctness and the following information is
instead given solely as a statement of Seller's belief at the time these terms and conditions were
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created. The following statements are attributable solely to Seller and are not representations of or
statements by the Auction Company.
(i) This sale is by Order of the United States District Court for the Northern District
of Texas, Lubbock Division (the “Court”). Seller Fernando M. Bustos, Receiver is the Receiver
appointed by the Court and Seller has no knowledge of the condition of the property, and specifically
makes no representation or disclosure whatsoever regarding the Property and it will be sold in "AS
IS, WHERE IS" condition with all circumstances, defects, easements, facts, faults, hazards, issues,
and other relevant matters. To the fullest extent allowed by laws, Seller and Auction Company
unconditionally disclaim any guarantee, representation, or warranty of every kind, whether
expressed, implied, or statutory, whether oral or written, and whether past, present, or future with
respect to the Property, the surrounding area, the Auction, these Terms and Conditions, and the
Sales Contract.
(ii) The Property will be offered for sale and, if sold, conveyed subject to all
covenants, deeds, easements, reservations, restrictions, right-of-ways, and other matters of record.
(iii) Maps and depictions included in the marketing materials for the auction are for
illustration purposes only and neither Seller nor Auction Company guarantee, represent, or warrant
that any of these materials or related information are either accurate or complete. Purchaser shall
review the public records regarding the Property for the best description of it, along with any
additions, adjustments, changes, corrections, or deletions.
(iv) Any fencing or walls on the Property are not necessarily an indication of the
Property's boundary line. Purchaser should rely upon the legal description of the Property contained
in the title commitment for the location of all Property boundaries. Boundary line fences and walls
may be shared in common with adjoining landowners.
(v) Purchaser shall be solely responsible for obtaining and paying for all plans needed
for building and construction on the Property, as well as all building and construction permits.
(vi) Purchaser shall be exclusively responsible for obtaining any and all permits for
the installation of utilities to the Property itself and paying all costs related to such installation. It
will be Purchaser's sole responsibility to pay for all lines, meters, permits, tanks, and other applicable
fees.
(vii) The law provides that Purchaser may inquire with local and state law
enforcement as to the location of known sex offenders which may impact the Property. Purchaser is
aware of and understands this ability and has either made this inquiry or voluntarily chosen not to do
so.
(viii) No personal property will be sold or conveyed with the Property.
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(ix) The floor plans of any one house or commercial building built may be different
"as built" than "as shown" in the advertising and other materials related to the Auction. Purchaser
should inspect the Property and conduct due diligence with respect to all matters, including the actual
"as built" floor layout of any improvements on the Property.
13. TITLE DEFECTS. If prior to Closing, a new defect in title is disclosed by an updated Title
Commitment, which defect is not one of the Permitted Title Exceptions, prior to Closing Date,
Purchaser may either waive such defect or give written notice to Seller and Escrow/Closing Agent
no later than five (5) days from the date of discovery of such defect in title, pursuant to Paragraph 19,
whereupon Seller may, at its option, attempt to cure such defect prior to the Closing or decline to
cure such defect. If Seller is unable or unwilling to cure, on or before the Closing Date, any defect as
to which Purchaser has notified Seller as hereinabove provided and if Purchaser does not waive such
defect on or prior to the Closing Date by written notice to Seller, this Sales Contract shall be
terminated without liability to either party and the Earnest Money Deposit shall be returned to
Purchaser. Seller shall have the right, at its sole election, to extend the Closing Date by not more
than SIXTY (60) DAYS to attempt to cure any defect in title.
14. PROPERTY IDENTIFICATION/SURVEY.
(a) The Property is identified in the legal description as contained in the Title Report and
attached to this Sales Contract.
(b) Should Purchaser have any survey made of the Property and such survey determines
greater or lesser acreage or square footage in the Property than represented by Seller or Auction
Company, no adjustment will be made to the total contract price to be paid by Purchaser for that
Property and the Seller and Auction Company shall have no liability whatsoever to Purchaser on any
basis and for any amount.
(c) Seller shall convey the Property to Purchaser by Receiver's Deed, free and clear of all
liens and encumbrances, except as specified in the "exceptions" of the Title Report, any additions and
revisions to the terms and conditions issued by Auction Company prior to the Auction, the Auction
Real Estate Sales Contract and subject to all existing restrictions and other matters of record.
15. COMMISSIONS.
(a) Brokerage. Purchaser warrants and represents that Purchaser [ ] is [ ] is not
represented by a qualified, licensed, real estate Buyer's Broker ("Buyer-Broker") in this transaction.
If Purchaser is represented by a Buyer-Broker, the Buyer-Broker's name is .
The Buyer-Broker must have performed all requirements of the Buyer-Broker according to the
Auction Company Guidelines and executed a Broker Registration Form provided by the Auction
Page8 of17
Company. Failure to properly register or comply with the provisions of the Guidelines will
disqualify the Buyer-Broker from receiving any commission.
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Purchaser further warrants and represents that Purchaser has not contacted or communicated with
any other real estate agent or broker about the possible purchase of the Property other than the
Auction Company or the Buyer-Broker named above, and that to the best of Purchaser's knowledge
there are no brokerage fees, commissions or sums due to any other broker or real estate agent.
Purchaser shall indemnify Seller and Auction Company against the claims of any real estate agent or
broker not properly registered with Auction Company, including any attorney's fees incurred by
Seller or Auction Company as a result of such claim. This provision shall survive the closing and
termination of this Sales Contract.
(b) Brokerage Commissions/Referrals. Upon the closing of the transaction contemplated
herein, Seller shall pay Auction Company a commission pursuant to the terms of a separate
agreement. If a Buyer-Broker is properly licensed and registered with the Auction Company, then at
closing, the Buyer-Broker shall be paid a fee in accordance with the Buyer-Broker Registration
Form, with a commission/referral of THREE PERCENT (3%) on the WRITTEN OPENING BID
AMOUNT offered by the Purchaser at the Auction and provided Buyer-Broker registered on behalf
of Purchaser in strict compliance with the terms and conditions of the Auction (herein so called),
immediately preceding the execution of this Sales Contract. IF AN OPENING BID IS NOT
WRITTEN ON THE BROKER REGISTRATION FORM, THEN NO COMMISSION/REFERRAL
FEE WILL BE PAID ON THE TOTAL CONTRACT PRICE: notwithstanding anything to the
contrary, contained or implied elsewhere herein, if for any reason whatsoever, (including the default
of any party hereto), the closing hereunder does not occur, then no commission/referral fee shall be
due and payable to Buyer-Broker.
(c) Agency Disclosure. THE AUCTION COMPANY IS ACTING EXCLUSIVELY AS THE
AGENT FOR SELLER IN THIS TRANSACTION AND IS TO BE PAID A FEE BY SELLER,
PURSUANT TO A SEPARATE, WRITTEN AGREEMENT BETWEEN SELLER AND
AUCTION COMPANY. AUCTION COMPANY IS NOT ACTING AS AN AGENT IN THIS
TRANSACTION FOR ANY PURCHASER. ALSO, NO THIRD-PARTY BROKER IS ACTING
AS A SUB-AGENT OF AUCTION COMPANY AND SUCH BROKER IS TO BE PAID SOLELY
BE SELLER.
16. BREACH OF CONTRACT BY SELLER. If Seller defaults in the performance of any of its
obligations pursuant to this Sales Contract and Closing fails to occur by reason thereof, Purchaser
may, as Purchaser's sole remedy, terminate this Sales Contract and receive the Earnest Money
Deposit, together with any interest accrued thereon, if any, or seek specific performance of this Sales
Contract. In no event shall Auctioneer be liable for any damages. Purchaser waives all other
remedies.
17. BREACH OF CONTRACT BY PURCHASER. In the event the purchase and sale
contemplated in this Sales Contract is not consummated because of Purchaser's default, the Seller
reserves all rights allowed by law and this Sales Contract, including a suit for damages, specific
performance or cancellation of the sale, with the Seller to retain the Earnest Money Deposit.
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Purchaser hereby waives and releases any right to and hereby covenants that it shall not sue Seller,
Auction Company or Escrow/Closing Agent to recover the Earnest Money Deposit or any part
thereof on the grounds that it is unreasonable in amount or that its retention by Seller is a penalty and
not agreed upon as reasonable liquidated damages. Any action taken after Purchaser's default shall
be solely at Seller's option.
18. CASUALTY. Except as herein provided, all risk of loss with respect to damage to the
Property shall be borne by Seller until the Closing Date; thereafter, all risk of loss shall be borne by
Purchaser. In the event that the Property is, in the opinion of Seller, significantly damaged or is
destroyed by fire or other casualty or hazard prior to Closing, Seller shall have the option to restore
the Property to its pre-casualty condition or to cancel this Sales Contract and Purchaser's Earnest
Money Deposit shall be returned as a complete and final settlement to Purchaser of all Seller's
obligations hereunder. Should Seller desire to restore the Property to its pre-casualty condition,
Seller shall so notify Purchaser and thereafter have 120 days to complete such restoration, with the
Closing Date to be postponed accordingly.
19. NOTICES. All notices under this Sales Contract shall be deemed delivered when personally
delivered or mailed postage prepaid, certified or registered mail, return receipt requested, or when
delivered by a courier service to the addresses set forth next to the signature of each party below. A
copy of all notices given hereunder shall be delivered to the Auctioneer and Escrow/Closing Agent.
20. WAIVER. No failure or delay on the part of Seller in exercising any right of Seller nor any
action on the part of Seller or any course of dealing or partial performance shall be deemed a waiver
of any right Seller set forth herein or a modification of any terms set forth herein.
21. SEVERABILITY HEADINGS, PRONOUNS AND CONSTRUCTION.
(a) If any clause or provision of this Sales Contract is later held illegal, invalid or
unenforceable, it is the intention of Seller, Bidders, and Purchaser(s) that the remainder of this Sales
Contract shall not be affected and, in lieu of such clause or provision that is held illegal, invalid, or
enforceable, there shall be added by the court, as a part of this Sales Contract, a clause or provision
as similar in terms of such illegal, invalid, or unenforceable clause or provision as may be possible,
legal, valid and enforceable.
(b) Headings herein are for reference only and not intended to expand or restrict the scope or
substance of the provisions of this Sales Contract. Any reference herein to an article heading
includes all relevant sections, subsections, and paragraphs within that article.
(c) Words used in the present tense may also include the future tense, as the context requires.
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(d) Wherever used in this Sales Contract, the singular shall include the plural, the plural shall
include the singular, and pronouns shall be read as masculine, feminine or neuter, as the context
requires.
22. ASSIGNMENT AND THIRD PARTIES. Purchaser may not assign or transfer purchase of
the Property to another, without the prior, written consent of Seller. Nothing contained in this Sales
Contract, or in any related document or instrument executed by Purchaser in connection with the
Auction and any sale that results, shall create any rights in, or be deemed to have been executed for,
the benefit of any person or entity not a party hereto, except as expressly provided in writing.
23. BINDING EFFECT. This Sales Contract shall be binding upon Seller and all Bidders and
Purchaser(s), plus their agents, assigns, attorneys, beneficiaries, distributees, employees, executors,
heirs, legatees, officers, representatives, and successors in interest.
24. COUNTERPARTS. This Sales Contract may be executed in one or more counterparts, each
of which shall have the force and effect of an original, and all of which shall constitute but one
document. Facsimile signatures shall be as valid as an original signature.
25. LEGAL ACTION. Any claim, controversy, or dispute arising out of these Terms and
conditions, the Auction, this Sales Contract, the transaction contemplated herein, or any related
dealings between Seller, Bidder, Purchaser, and/or Auction Company ("the Auction Matters"),
whether controlled by federal or state law, and whether an issue of law or equity, shall be resolved
exclusively in the United States District Court for the Northern District of Texas, Lubbock Division.
Each party irrevocably waives all right to a trial by jury in any action, proceeding, or counterclaim
arising out of the Auction Matters. The prevailing party(ies) shall be entitled to collect from the
losing party its costs, including reasonable attorney's fees.
26. ACKNOWLEDGMENT. The undersigned ("Purchaser") certifies that he or she is of legal
age and has full legal capacity and authority to understand, execute and deliver this Sales Contract on
behalf of himself or herself. If Purchaser is purchasing the Property on behalf of a for-profit entity,
non-profit corporation, or public agency, the Purchaser will not be released from his/her obligation to
purchase under this Sales Contract until such time as Seller receives a resolution by the entity,
acceptable to Seller, authorizing the purchase of the Property.
27. MISCELLANEOUS.
(a) This Sales Contract contains the entire undertaking between Seller, Purchaser, and
Auction Company regarding this sale and there are no oral or written agreements, inducements,
promises, representations, or warranties other than those expressly set forth herein.
(b) This Sales Contract supersedes any previous agreement, negotiation or understanding
between Seller, Purchaser and Auction Company regarding the Auction and the sale of the Property
contemplated herein and any such have been extinguished before the Auction and do no survive.
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(c) No deletion, modification, supplement or waiver of any of the terms of this Sales Contract
shall be made.
(d) The failure of Seller to insist upon the strict performance of any term of this Sales
Contract by Purchaser shall not be construed as a waiver of any subsequent default of the same or
similar nature.
(e) Purchaser has had the opportunity to seek the independent advice of legal counsel of its
choosing and has either done so or has voluntarily decided to forgo such advice, with full
understanding of the risk involved in this course for this Auction and the sale of the Property
contemplated herein.
(f) As a licensed auctioneer by the state of Texas, this auction is covered by the recovery fund
and any complaints can be filed with the Texas Department of Licensing and Regulation located at
920 Colorado, Austin, Texas 78711, or at their mailing address of P.O. Box 12157, Austin, Texas
78711; telephone: 512-463-6599; facsimile: 512-475-2871; toll-free (in Texas): 800-803-9202,
Relay Texas-TDD: 800-735-2989.
28. TEXAS STATUTORY NOTICES.
(a) Abstract or Title Policy. Broker advises Buyer to have an abstract of title covering the
Property examined by an attorney of Buyer's selection, or Buyer should be furnished with or obtain a
Title Policy. If a Title Policy is furnished, the Commitment should be promptly reviewed by an
attorney of Buyer's choice due to the time limitations on Buyer's right to object.
(b) Mandatory Owners' Association Membership. The Property may be subject to mandatory
membership in an owners' association. If the Property is subject to mandatory membership in an
owners' association, Seller notifies Buyer under '5.012, Texas Property Code, that, as a purchaser of
Property in the residential community in which the Property is located, you are obligated to be a
member of the owners' association. Restrictive covenants governing the use and occupancy of the
Property and a dedicatory instrument governing the establishment, maintenance, and operation of
this residential community have been or will be recorded in the Real Property Records of the county
in which the Property is located. Copies of the restrictive covenants and dedicatory instrument may
be obtained from the county clerk. You are obligated to pay assessments to the owners' association.
The amount of the assessments is subject to change. Your failure to pay the assessments could result
in a lien on and the foreclosure of the Property.
(c) Statutory Tax Districts. If the Property is situated in a utility or other statutorily created
district providing water, sewer, drainage, or flood control facilities and services, Chapter 49, Texas
Water Code, requires Seller to deliver and Buyer to sign the statutory notice relating to the tax rate,
bonded indebtedness, or standby fee of the district prior to final execution of this contract.
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(d) Annexation. If the Property is located outside the limits of a municipality, Seller notifies
Buyer under '5.011, Texas Property Code, that the Property may now or later be included in the
extraterritorial jurisdiction of a municipality and may now or later be subject to annexation by the
municipality. Each municipality maintains a map that depicts its boundaries and extraterritorial
jurisdiction. To determine if the Property is located within a municipality's extraterritorial
jurisdiction or is likely to be located within a municipality's extraterritorial jurisdiction, contact all
municipalities located in the general proximity of the Property for further information.
(e) Property Located in a Certified Service Area of a Utility Service Provider. Notice
required by '13,257, Water Code: The real property, described in Paragraph 1 that you are about to
purchase may be located in a certified water or sewer service area, which is authorized by law to
provide water or sewer service to the properties in the certified area. If your Property is located in a
certified area there may be special costs or charges that you will be required to pay before you can
receive water or sewer service. There may be a period required to construct lines or other facilities
necessary to provide water or sewer service to your Property. You are advised to determine if the
Property is in a certified area and contact the utility service provider to determine the cost that you
will be required to pay and the period, if any, that is required to provide water or sewer service to
your Property. The undersigned Buyer hereby acknowledges receipt of the foregoing notice at or
before the execution of the binding contract for the purchase of the real property described in
Paragraph 1 or at closing of purchase of the real property.
(f) Public Improvement Districts. If the Property is in a public improvement district, '5.014,
Property Code, requires Seller to notify Buyer as follows: As a purchaser of this parcel of real
property, you are obligated to pay an assessment to a municipality or county for an improvement
project undertaken by a public improvement district under Chapter 372, Local Government Code.
The assessment may be due annually or in periodic installments. More information concerning the
amount of the assessment and the due dates of that assessment may be obtained form the
municipality or county levying the assessment. The amount of the assessments is subject to change.
Your failure to pay the assessments could result in a lien on and the foreclosure of your property.
(g) Patriot Act Representation. Seller and Purchaser each represent to the other that: (1) its
property interest is not blocked by Executive Order 13224, 66 Fed. Reg. 49079; (2) it is not a person
listed on the Specialty Designated Nationals and Blocked Persons list of the Office of Foreign Assets
Control of the United States Department of the Treasury; and (3) it is not acting for or on behalf of
any person on that list.
29. ATTACHMENTS. The following Attachments/Exhibits are attached hereto and fully
incorporated herein by reference for all purposes:
Attachment I - Information about Brokerage Services
Attachment II - Title Report
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IN WITNESS WHEREOF, the parties hereto have duly executed this Real Estate Contract, as of the
day and year first above written.
ADDRESS: SELLER:
Law Offices of Fernando M. Bustos, P.C.
P.O. Box 1980
Lubbock, Texas 79408-1980 Fernando M. Bustos, Receiver for Benny L. Judah
and Excel Lease Fund, Inc., Civil Action No. 5-
09CV0087-C, In the United States District Court
for the Northern District of Texas, Lubbock
Division
PO Box 64308 _____________________________________
Lubbock, Texas 79413 Stephen T. Kennedy
ADDRESS: PURCHASER:
Signature:
Printed Name:
Social Security No.
Federal Tax ID No.
Phone Nos. (Work)
(Home)
(Fax)
Page 49
www.AllianceAuctioneers.com
Be sure to mark your calendar for Wednesday, September 21st, 2011
2:00PM CST
Please call our office if you have any questions
2744 Duniven Circle Amarillo, TX 79109
Toll Free: 877-271-7891
Office: 806-553-1960 Fax: 806-553-1964
[email protected] www.AllianceAuctioneers.com
Please be sure to check out our website for up-to-date details for this auction as well as upcoming auctions.