2011-R-21 - Agreement Carol F. Smith & Smith & Sons Lot 3 Pecan StreetRESOLUTION NO. X1-R 2Y
A RESOLUTION BY TAE CITY COUNCIL OF THE CITY OF
SCHCRTZ, TEXAS AUTHORIZING TWO PURCHASE AND SALE
AGREEMENTS WITI~ CAROL F. SMI`T'H AND SMITH & SONS, INC.
AND A LZi;ASI•; AGREEMENT WITH SMITIi & SONS, INC., AND
OTI3ER MATTERS IN CONNECTION THEREWITH
WHEREAS, the City staff of the City of Schertz (the "City"} has xecommended that the
City entcr into two purchase and sate agreements with Carol F. Smith and Smith & Sons, Inc.
and a Tease agreement with Smith & Sons, Inc.; and
WHEREAS, the City Council has determined that it is in the best interest of the City to
enter into the three agreements attached hereto as Exhibit A, Exhibit B, and Exhibit C (the
"Agreements").
BE IT RESOL~7ED BY THE CITY COUNCIL OF THE CITY OF SCHERTZ, TEXAS
THAT;
Section 1. The City Council hereby authorizes the City llilanager to execute and
deliver the Agreements with other parties thereto in substantially the forms set forth on
Exhibit A, Exhibit B, and Exhibit C.
Section 2. The recitals contained in the preamble hereof are hereby found to be trtae,
and such recitals are hereby made a part of this Resolution for all purposes and are adopted as a
pant of the judgment and findings of the City Council.
Section 3. All resolutions, or parts thereof, which are in conflict or inconsistent with
any provision of this Resolution are hereby repealed to the extent of such conflict, and the
provisions of this Resolution shall be and remain controlling as to the matters resolved herein.
Section d, This Resolution shall be construed and enforced in accordance with the
laws of the State of Texas and the United States of America.
Section S. If any provision of this Resolution or the application thereof to any person
or circumstance shall be held to be invalid, the remainder of this Resolution and the application
of such provision to other persons and circumstances shall nevertheless be valid, and the City
Council hexeby declares that this Resolution would have been enacted without such invalid
provision.
Section 6. It is officially found, determined, and declared that the meeting at which
this Resolution is adopted was open to the public andpu6lic notice of the time, place, and subject
matter of the public business to be considered at such meeting, including this Resolution, was
given, all as required by Chapter 551, Texas Government Code, as amended,
Section 7. This Resolution shall be in force and effect from and after its final
passage, and it is so resolved,
so~~zo9g.i
PASSED Ai~D ADOPTED, this 29th day of March, 2411.
TEXAS
Mayor
ATTEST:
City Secretary
(CITY SEAL}
54312099.1
ExhusxT A
PURCHASE A,i~ID SALT AGRE~M~NT (CAROL F, S~YiLTI~
soaiaa~.i A-1
EXHrBIT B
PYJRCHASE AND SALE AGREEMI+;NT (SMITFI & SANS, INC.)
50412099.1 B_ ]
EXHIBIT C
LEASE AGREEMENT {SMITH & SONS, INC,)
soa~2o~9.i C-1
FI.~LBRIGHT
~Jaworshz L.L.P
Artarncya ar Cur,
300 Convent Street, Suite 2100 • San Antonio, Texas 7$205-3792
ktapley(fulbrlght.com • Direct: 210 270 7191 • Malrr: 210 224 5575 • Facslmlle: 210270 7205
July 25, 201].
BY HAND DELIVERY
Ms. Brenda Dennis
City Secretary
City of Schertz, Texas
1400 Schertz Parkway
Schertz, Tx 78154
Re: Smith Closing -Deeds and Title Policies
Dear Brenda;
Enclosed are the two original f le-stamped deeds and the two original title policies from the
Smith closings. Please do not hesitate to contact me if you have any questions.
Very truly yours,
Kat rine A. apley
KAT
Enclosures
50433418,
AUSTIN • BEIJING • DALLAS • DENVER • DUBAI • HONG KONG • HOUSTON • LONdON .LOS ANGELES
MINNEAPOLIS • MUNICH • NEW YORK • RIYADH • SAN ANTONIO • ST. LOUIS • WASHINGTON DC
wtivw.fulbrlghl.com
i
Chicago Title Insurance Company
~,
OWNER'S POLICY OF TITLE INSURANCE (T-1}
Issued by
Chicago Title It~surance Company
Any notice of claim and any other notice ar statement in writing required to be given the Company under this
Policy must be given to the Company at the address shown in Section 18 of the Conditions.
COVERED RISKS
SUBJECT TO THE EXCLUSIONS FROM COVERAGE, THE EXCEPTIONS FROM COVERAGE CONTAINED
IN SCHEDULE B AND THE CONDITIONS, CHICAGO TITLE INSURANCE COMPANY, a Nebraska corporation
(the "Company") insures, as of Date of Policy and, to the extent stated in Covered Risks 9 and 10, after Date of Policy,
against lass or damage, not exceeding the Amount of Insurance, sustained or incurred by the Insured by reason of:
1. Title being vested other than as stated in Schedule A.
2, Any defect in or lien or encumbrance on the Title. This Covered Risk includes but is not limited to insurance
against loss from:
(a) A defect in the Title caused by:
(i) forgery, fraud, undue influence, duress, incompetency, incapacity or impersonation;
(ii) failure of any person or Entity to have authorized a transfer or conveyance;
(iii) a document affecting Title not properly created, executed, witnessed, sealed, acknowledged, nota-
rized or delivered;
(iv) failure to perform those acts necessary to create a document by electronic means authorized by law;
{v) a document executed under a falsified, expired or otherwise invalid power of attorney;
(vi) a document not properly filed, recorded or indexed in the Public Records including failure to per-
form those acts by electronic means authorized by law; or
(vii)a defective judicial or administrative proceeding.
{b) The lien of real estate taxes or assessments imposed on the Title by a governmental authority due or
payable, but unpaid.
(c) Any encroachment, encumbrance, violation, variation, or adverse circumstance affecting the Title that
would be disclosed by an accurate and complete land survey of the Land. The term "encroachment"
includes encroachments of existing improvements located on the Land onto adjoining land, and en-
croachments onto the Land of existing improvements located on adjoining land.
(d) Any statutory or constitutional mechanic's, contractor's, or materialman's lien for labor or materials
having its inception on or before Date of Policy.
3. Lack of good and indefeasible Title.
~!. No right of access to and from the Laad.
5. The violation or enforcement of any law, ordinance, permit, or governmental regulation (including those
relating to building and zoning) restricting, regulating, prohibiting or relating to:
(a} the occupancy, use or enjoyment of the band;
(b) the character, dimensions or location of any improvement erected on the Land;
{c} subdivision of land; or
{d) environmental protection
if a notice, describing any part of the Land, is recorded in the Public Records setting forth the violation or
intentiomto enforce, but only to the extent of the violation or enforcement referred to in that notice.
6. An enforcement action based on the exercise of a governmental police power not covered by Covered Risk 5
if a notice of the enforcement action, describing any part of the Land, is recorded in the Public Records, but
only to the extent of the enforcement referred to in that notice.
7. The exercise of the rights of eminent domain if a notice of the exercise, describing any part of the Land, is
recorded in the Public Records.
8. Any taking by a governmental body that has occurred and is binding on the rights of a purchaser for value
without Knowledge.
7239643 Owner's Policy of Title Insurance {T 1)
9. Title being vested other than as stated in Schedule A or being defective:
(a) as a result of the avoidance in whole or in part, or from a courk order providing an alternative remedy, of
a transfer of all or any part of the title to or any interest in the Land occurring prior to the transaction
vesting Title as shown in Schedule A because that prior transfer constituted a fraudulent or preferential
transfer under federal bankruptcy, state insolvency or similar creditors' rights laws; or
(b) because the instrument of transfer vesting Title as shown in Schedule Aconstitutes a preferential transfer
under federal bankruptcy, stake insolvency or similar creditors' rights laws by reason of the failure of its
recording in the Public Records:
{i) to be timely, or
(ii) to impart notice of its existence to a purchaser for value or a judgment or Gen creditor.
10. Any defect in or lien or encumbrance on the Title or other matter included in Covered Risks 1 through 9 that
has been created or attached or has been filed or recorded in the Public Records subsequent to Date of Policy
and prior to the recording of the deed or other instrument of transfer in the Public Records that vests Title as
shown in Schedule A.
The Company will also pay the costs, at#orneys' fees and expenses incurred in defense of any matter insured against by
this Policy, but only to the extent provided in the Conditions.
Chicago Tifle Insurance Company
Issued by:
CHICAGO TITLE INSURANCE COMPANY
270 N. LOOP 1604 EAST, SUITE100
SAN AN"I'ONIO, TX 78232
(210) 482-3500
~~~/G'
Authorized Signature
By:
INSiJ~c
o ~ .,L F ~
~~~' g President
v SE1~~1'°:,: ; ATTEST`.
:..~._
.r .:~,.
~a:.,~ 7t ~c ~
5ecrelary
72a9sa~
Owner's Policy of'Citie Insurance {T-l)
-.~ j
sated Claimant shall permit the Company to sue, compromise or settle in
the name ofthe Insured Claimant and to use the name ofthe Insured Claimant
iri any transaction ar litigation involving these rights and remedies.
If a payment on account of a claim does not fully cover the lass of the Insured
Claimant, the Company shall defer the exercise of its right to recover until after the
Insured Claimant shall have recovered its loss.
(b) The Company's right of subrogation includes the rights of the insured to
indemnities, guaranties, other policies of insurance or bonds, notwithstand-
ing any terms or conditions contained in those instruments that address sub-
rogation rights.
14. ARBITRATION.
Either the Company or the Insured may demand that the claim or controversy shall
be submitted tv arbitration pursuant to the Title Insurance Arbitration Rules of the
American Land Title Association {"Rules"). Except as provided in the Rules, there
shall be no joinder or consolidation with claims or controversies of other persons.
Arbitrable matters may include, but are not limited to, any controversy or claim
between the Company and the Insured arising out of ar relating to this policy, any
service in connection with its issuance or the breach of a policy provision, or to any
other controversy or claim arising out of the transaction giving rise to this policy.
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 the Insured, unless the Insured is
an individual person {as distinguished From an Entity}.All arbitrable matters when
the Amount of Insurance is in excess of $2,000,000 shall be arbitrated only when
agreed to by both the Company and the Tnsured. Arbitration pursuant to this policy
and under the Rules shall be binding upon the parties. Judgment upon the award
rendered by theArbitrator{s) may be entered in any court ofcompetent jurisdiction.
15. LIA3IILTTY LIMITED TO THIS POLICY; POLICY ENTHZE CONTRACT.
(a) This policy together with all endorsements, if any, attached to it by the Com-
pany isthe entire policy and contract between the Insured and the Company.
In interpreting any provision ofthis policy, this policy shaft be construed as a
whole.
(b) Any claim of loss or damage that arises out ofthe status of the Title or by any
action asserting such claim, shall be restricted to this policy.
(c) Any amendment of or endorsement to this policy must be in writing and
authenticated by an authorized person, or expressly incorporated by Schedule
A of this policy.
(d) Each endorsement to this policy issued at any time is made a part of this
policy and is subject to all of its terms and provisions. Except as the endorse-
ment expressly states, it does not (i) modify any of the terms and provisions
of the policy, (ii) modify any prior endorsement, (iii) extend the Date of Pol icy
or (iv) increase the Amount oflnsurance. Each Commitment, endorsement or
other form, yr provision in the Schedules to this policy that refers to a term
defined in Section 1 of the' Conditions shall be deemed to refer to the term
regardless of whether the term is capitalized in the Commitment, endorse-
ment or other form, or Schedule. Each Commitment, endorsement or other
form, ar provision in the Schedules that refers to Ehe Conditions and Stipula•
lions shall be deemed to refer to the Conditions of this policy.
16. SE'VERABILITY.
In the event any provision of this policy, in whole or in part, is held invalid or
unenforceable under applicable law, the policy shall be deemed not to include that
provision or such part held to be invalid and all other provisions shall remain in full
force and effect.
17. CHOICE OF LAW;1?ORUM.
(a) Choice of Law: The Insured acknowledges the Company has underwritten
the risks covered by this policy and determined the premium charged there-
fore in reliance upon the law affecting interests in real property and appli-
cable tothe interpretation, rights, remedies or enforcement of policies of title
insurance of the jurisdiction where the Land is located.
Therefore, the court or an arbitrator shall apply the law of the j urisdiclion where the
Land is located to determine the validity of claims against the Title that are adverse
to the Insured, and in interpreting and enforcing the terms of this policy. In neither
case shall the court or arbitrator apply its conflicts of laws principles to determine
the applicable law.
{b) Choice of Forum: Any litigation or other proceeding brought by the Insured
against the Company must be filed only in a state or federal court within the
Tlnited States ofAmerica or its territories having appropriatejurisdiction.
18. NOTICES, WHERE SENT.
Any notice of claim and any other notice or statement in writing required to be
given the Company under this Policy must be given to the Company at National
Claims Administration, P.O. Box 45023, Jacksonville, FL 32232-5023.
7239843 Owner's Policy ofTitie Insurance (T l)
IMPORTANT NOTICE
To obtain information or make a complaint:
You may ca] L Chicago Title Insurance Company's toll-free telephone
number for information or to make a complaint at:
1-800-442-4303
You may also write to Chicago Title Insurance Company at:
2001 Bryan Street, Suite 1700
Dallas, Texas 75201
You may contact the Texas Department of Insurance to obtain in-
formation on companies, coverages, rights or complaints at:
1-800-252-3439
You may write the Texas Department of lnsurance:
P.O. Box 149104
Austin, TX 78714-9104
Fax: (512)475-1771
Web: http:l/www.tdi.state.tx,us
E-mail: ConsumerPratection tdi.state,tx.us
PREMIUM OR CLAIM DISPUTES:
Should you have a dispute concerning your premium or about a
claim you should contact the company first. If the dispute is not
resolved, you may contact the Texas Department of lnsurance.
ATTACH THIS NOTICE TO YOUR POLICY:
This notice is for information only and does not become a part or
condition of the attached document.
AVISO IMPORTANTE
Para obtener information o pars someter una queja:
Usted puede llamar al numero de telefono gratis Compania de
Seguros de Tftulo de Chicago Title pars information o Para someter
una queja al:
1-800-442-4303
Usted tambien puede escribir a Compania Seguros de Titulo de
Chicago Title
2001 Bryan Street, Suite 1700
Dallas, Texas 75201
Puede comunicarse con el Departamento de Seguros de Texas para
obtener information acerca de companias, coberturas, derechos o
quejas al:
1-800-252-3439
Puede escribir al Departamento de Seguros de Texas:
EO. Box 149104
Austin, TX 78714-9104
Fax: (512) 475-1771
Web: httpa/www tdistate.tx,us
E-mail: ConsumerProtectionCcdtdistate.tx.us
DISPUTAS SOBRE PRIMAS O RECLAMOS:
Si tiene una disputa concerniente a su prima o a un reclamo, debe
comunicarse con el la Compania} primero. Si no se resuelve la
disputa, puede entonces comunicarse con el departamento (TDI}.
UNA ESTE AVISO A SU POLIZA:
Este aviso es solo para proposito de information y no se convierte
en pane o condition del documento adjunto.
basis of loss or damage and shall state. to the cxlcnt possible, the basis of calculat-
ing 11tc amount of dte loss or damage.
~.
6.
7.
DEFENSE AND PROSECUTION OFACTIONS.
fat Upon +rriucn request by the ]nsurcd. and subject to the options contained in
Sccuons 3 and 7 of Ihcsc Conditions, the Company. al its o+vn cost and +vigt-
ow unreasonable delay, shall provide for the dcfcnsc of an Insured in lili~a-
lion inwhich any third party asserts a claim covered by ibis policy adverse to
the Insured. This obligation is limited to only Ihosc stared causes of action
alleging matters insured against by this policy. Thc Company shall Itave dtc
right to selcel counsel of its choice {subject to the right of tl+e insured to
object for rcasonablc cause} to represent the Insured as to Ihosc stated causes
ol'auion. [t shall nor be liable for and will not pay the fccs of any other
counsel. Thc Company will not pay any fccs, costs or cxpcnscs incurred by
the Insured in the dcfcnsc of [host causes of action that allege matters not
insured against 6y lilts policy.
{b} Thc Company shat! have the right. in addition to the options comained in
Sections 3 and 7, at its own cost, to instilule and prosccutc any action or
proceeding or to do any other act that in its opinion may 6c necessary or
desirable to establish the Tillc, as lnsurcd, or to prevent or reduce loss or
damage [o the (nsurcd. Thc Company may take any appropriate action +tndcr
Ifte terms of this policy, whcthcr or not it shall be liable to the insured. Thc
cxcrcisc of these rights shall not be an admission of liability or waiver of any
provision of tttispolicy.lflhcCompanycxcrciscs its rights undcrthis subscc-
l[on, it must do so diligently.
(c~ Whcttcver rite Company brings an action or asserts a dcfcnsc as required or
pcnniucd by this policy, the Company may pursue the litigation to a final
dctctntinalion by a court ofcompclcnt jurisdiction and it expressly rescn•cs
the right, in its sole discrclion. to appeal from any advcrsc judgment or order.
DUTY pFINSURED CLAIMANT TO COOPERATE.
(a) In all casts where ibis policy penults or requires the Company to prosccutc or
pro+•idc for the dcfcnsc of any action or proceeding and any appeals, the ln-
surcd shall secure to the Company the right to so prosccutc or provide dc-
fcnsc in thcaction or proceeding, including the right to use, at its option, the
nantc oftl+e (nsurcd far [his purpose. \itltcncvcr requested by the Company,
tktc lnsurcd, at the Company's expense, shall give the Company all rcason-
ableaid (i) in securing cyidatcc, obtaining wimcsscs, prosecuting or dcFcnd-
ing the action or proceeding, or cFTccling scttlcmcnt, and (ii} in any other
lawful act that in rite opinion ofthc Company may be necessary or desirable
to establish the Tillc or any other matter as insured. [f the Company is prcju-
diccd by the failure of the lnsurcd to Famish the required cooperation, thr
Company's obligations to the lnsurcd under the policy shall remtinatc, in-
cludingany liability orobligation to dcfcnd. prosccutc, orcontinuc any litiga-
tian,with regard to the molter or natters requiring such cooperation.
(b) Tltc Company may reasonably require rite lnsurcd Claimant to submit to
examination under oath by any aulhorizcd rcprcscnlalivc of [hc Company
and to product Fvr examination, inspection and copying, at such reasonable
times and places as Wray be designated by the aulhorizcd rcprescntativc ofthc
Company, all records, in whatever medium maintained, including books, Icd-
gcrs, checks, memoranda, correspondcncc, reports, c-mails, disks, rapes, and
videos whcthcr bearing a dart before or alter Dalc of Policy, that reasonably
pertain to the loss or damage. Further, iF requested by any aulhorizcd rcprc-
scntativc of lhcCompany, rite Insured Claimant shall grant ifs permission, in
writing, for any aulhorizcd rcprescnlalivc of the Company to examine, in-
spect and copy ail of these records in lire cttslody ar control ol'a lltird party
that reasonably pertain to the loss ordamagc.All [ttformation designated
as confdcntial by the lnsurcd Claimant provided to [he Company pursuant to
this Scclion shall not be disclosed to others unless, in the rcasouahlc judg-
mcn[ of lhcCompany, it is necessary inthe administration of the claim. Fai1-
urc of the lnsurcd Claimant to submit For examination under oath, produce
any reasonably requested information or grant pcrntission to secure rcason-
ably ncecssary inFormariott From third parties as required in this subsection,
unless prohibited by law or govcmmcnlal regulation, shall [coninatc any li-
ability ofthe Company under this policy as to that claim.
OPTIONS TO PAY OR OTHERWISE SETTLE CLAIMS; TERi-11NATION
OF LIABILITY.
[n case aF a claim under this policy, tits Company shall have the following addi-
lionaloptions:
(a) To Pay or Tcndcr Payment ofthc Amount of Ensurancc.
To pay or tcndcr pa}nnrnt of the Amount of lnsurancc under this policy togclhcr
wish any costs, allomcys' fccs and cxpcnscs incurred by [hc lnsurcd Claimant that
wcrc aulhorizcd by nc~. Compa+ry up to the time of paymcnl or tcndcr of paymcnl
and that the Company is obligated to pay.
Upon the cxcrcisc by the Company of this option, all liability and obligations aflhc
Company ro the lnsurcd nndcr gtis policy, other than to make the paymcnl required
in this subsection, shall lcnninatc. inchiding any liability or obligation [v dcfcnd.
prosccutc. or continue any litigation.
{b) To Pay ar Olhcnvisc Sclllc 11'ilh Panics Other Than the ]nsurcd or ~4'ith the
Insured Claimant.
(il to pay or otherwise scrdc with other parties for or in the name of an
Insured Claimam any claim insured against undcr.lhis policy. In addi-
tion, the Company will pay any costs. attorneys' fccs and cxpcnscs in-
curred by the Insured Claimant That ~ecrc aulhorizcd by the Company
up to lire time oFpaymcnt and [Ital the Company is obligated to pay; or
(ii} to pay or olhcn+°isc settle with tl+c ]nsurcd Claimant the loss or dauragc
provided for under this policy: togclhcr +vilh any costs, allomcys' fccs
and cxpcnscs incurred by the Insured Claimant shat wcrc aulhorizcd by
the Company up to the time of payment and that the Company is abii-
galed Iopay. Upon the cxcrcisc 6y lire Company ofcither of the options
provided for in subsections (b)(i} or (ii1, the Company's obligations to
Utc lnsurcd under this policy for the claimed loss or damage, other Ihan
the payments rcgttired to be made, shall tcnninate, including any liabi6
try or obligation to dcfcnd, prosccutc or continue any litigation.
8. DE1'ER~IINATION AND E\TENTOF LIABILITY.
This policy is a contract of indemnity against actual monetary loss ar damage sus-
laincd or incurred by the Insured Claimant who has sull'crcd toss or damage by
reason ol'maucrs insured against by this policy.
(a} Thc cxtcnl of Lability ol'thc Company For loss or damage under this policy
shall not exceed Iltc lesser of:
(i) YltcAlnoul+l of Insurance; pr
(ii) dtc diRcrcncc bcnvccn the value oflhc Title as insured and the value of
[hc Title subject to the risk insured against by this policy.
(b) I F the Company pursues its rights under Section 3 or 5 and is unsuccessful in
establishing the Title, as insured,
(i} tttcAmounl oflnsurancc shall be increased by 10%, and
(ii) the [nsurcd Claimant shall have the right to have the loss ar damage
dctcnnincd either as ofthc date the claim was made by the lnsurcd Claim-
ant or as of thcdate it is stilled and paid.
(c) In addition to the cxtcnl al' liability under {a) and (b), the Company will also
pay Ihosc costs. auomcys' fccs and cxpcnscs incurred in accordance with
Sections 5 and 7 ofthcsc Conditions.
4. LItl1ITATION OF LIABILITY.
(a) If the Company establishes the Title, or removes the alleged defect, lien or
cncmtt6rancc, or carts the lack of a right of access to or From the Land, alt as
insured, or takes action in accordanec with Section 3 or 7, in a reasonably
diligent manner by any method, including litigation and the completion of
any appeals, it shall have fully performed its obligations with respect to Thal
matter and shall not be liable f or any loss or damage caused to the lnsurcd.
(b) In the event oFany litigation, including litigation by the Company or with Qtc
Company's consent, the Company shag have no Lability for loss or damage
until dtcrcltasbccn a Lnal dclcrntination byacourtofcompctcntjurisdiction,
and disposition of all appeals, advcrsc to the Title, as insured.
(c} Thc Company shall not be liable Ior loss or damage to the lnsurcd For liability
voluntarily assuntcd by the [nsurcd in settling any claim or soil without the
prior wriucn consent of the Company.
10. REDUCTION OF INSURANCE; REDUCTION OR TERi171NATlON OF
LIABILITY.
Ail payments under this policy, except payments made for costs, auomcys' fccs
and cxpcnscs, shall reduce thcAmount of Insurance by the amount of the payment.
11, LiABILITYNONCU\1ULATIVE.
ThcAmounl oflnsuranccshall be rcduecd by any amount ihcCompanypays under
any policy insuring a Mortgage to which exception is taken in Schedule B or to
which the lnsurcd has agreed, assumed, or taken subject onvhich is executed by an
htsurcd alter Datc of Policy and which is a charge or lien on the Title, and the
amount so paid shall be deemed a payment tv the lnsurcd under this policy
12. PAYMENT OF LOSS.
When liability and the cxtcnl of loss ordamagc have been dcLni[cly f xcd in accor-
dancc w•ilh Ihcsc Conditions, lire paymcnl shall be made within 10 days.
13. RIGHTS OF RECOVERY UPON PAYtYIENT OR SETTLEMENT.
(a) Whenever the Company shall have settled and paid a claim nndcr this policy,
it shall be subrogatcd and entitled to the rights ofthe lnsurcd Claimant in the
Title and alt other rights and rcmcdics in respect to the claim that the lnsurcd
Claimant has agairts[ any person or property, to the cxlcnt of the amount of
any loss, costs, attorneys' fccs and cxpcnscs paid by the Company. if rc-
qucstcd by Iltc Company, the lnsurcd Claimant shall execute docttmcnts to
evidence the transfer to the Crnnpany of these rights and rcmcdics. Thc ln-
7339843 Owner's Policy ofTitlc lnsurancc (T-I1
EXCLUSIONS FROM COVERAGE
The follon•ing mattes ate cxpn :ssly excluded tram Utc covcrJgc of this policy and,lhc Compaary v+711 not pay loss or damage, casts, anomcys' fees or expenses that alisc by n~son o1_
I. {a) Any law, ordinance, pcrrttit, orgovanmental rcgldation (including those relating to building and zoning) restricting, regulating, prohibPting or relating [o.
(i) lhcoccupancy,usc.orcnjo}•rttcntofthcLand
(i) lhccharactcr.dimcrtsionsorlocarionofanyimproccntrnlcrcctcdonlltcLand:
(iii) subdivisionoflarxl:or(iv)cnvironmcnlalproleclion:
or the efl'ecl ofany violation of these laws, ordinances or go+•emntrnlal regulations-This Exclusion I(a) dots not ntodify orlimit the coverage provided under Covered Risk 5.
(b) Any govcmmenlal police power, This Fatchcsion I (b}does not modify or limit the coverage provided under Covered Risk b.
2. Rights ofcmincnldomain.7ltisExclusiondvcsnotntodifyorlimilthccovcragcproaidcdundcrCovcrodRisk7or$.
3. Dcfccts,lices,cncumbrarrccs,advcrscclainrsorotEtcrmancrs:
{a) crtxttoc), sud'ercd asttrmcd oraerccd to by life Insured Ciaimanl,
(b) nolKnowr[othcCompany-notrccordcdinthcPublicRccotdsatDa[cofPolicy,buttCno+vnlodtclnsurcdClaimanlandnotdiseloscdinwrilingtothcCompanybythcli>.suredClainranlprior
to the dale the Insured Claimant became an Insured under this policy,
(c) rtsttlling in no loss ordantage to the lnstued Claimant:
(d) attaching or t~catod su6scqucnt to Dale of Policy (ho+vcvcr, this does not moth fY or limit the coverage provided under Covered Risk 9 and 10}; or
(c) resulting in loss ordamagc drat would not have 6ccn srr~taincd if the Instuod Clairrtan! had paid value For the Tidc.
4. Anyclaim, by reason ofthe operation offederal bankrop[cy. stale insolvency, orsimilar t>zdilors'rigins laws, that the transaction vtsling the Ttle as sho+vn in SchedulcA, is:
(a} a frarrdulrnt comcyancc or liatrdulrnt transfer, or
(b) a preferential tratufcr for any n~son not staled in Covered Risk 9 ofthis policy.
5. AnylicnonQtcTillcforrralcstalclaxrsorasscssntcntsimposcdbygovcmmcnlalaulhoriryandcmalodorattachingbctwccnDatcofPolicyandthcdalcofmcordingoflhcdccdarothcrinstnnnrnl
oftranslcr in Utc Public Records that vests Tit1c as shoum in SchcdtrleA.
b. The retitsal ofany person to purchase.lca,SC or lend money on dtecstalc orinterest covered hereby in the land drxcrtbcd in SeltcdulcAbecatrse ol'UnmarketableTide.
CONDITIONS
1. DEFINITION OFTEIt11~IS.
The lollowing terms when used in this policy ntcan:
(a) "Amount of Insurance": ntc antomrl staled in SchcdulcA, as may be incrcascd
ordccrcascd by cndorscmcnt to This policy, incrcascd 6y 5caion $(b). or dc-
crcascd by Sections 10 and I I of [hest Condilions-
(b} "Dale of Policy": The date designated as "Dart of Policy" in Schcdulc A-
(c) "Entity":Acorporation,partncrship.tntsl.lintitcd liabilitycontpanyorothcr
similar Icgal cruity,
{d) "lnsurcd' :the htsurcd named in Schedule A.
(i) The term "lnsurcd" also inchtdcs:
{A} successors to the Title oflhc lnsurcd by operation of law as distin-
guished from purchase. including heirs. devisees, sun^ivers. per-
sonal rcprescnlativcs or next of kin;
f B) successors to an lnsurcd by dissolution. merger. consolidation, dis-
Iribulipn or rCOrganizalion:
(C) successors to an lnsurcd by its comcrsion lu another kind of En-
tity:
(D) a grantcc ofan lnsurcd under a decd delivered without paymcnl 01'
actual valuable consideration conveying IheTidc;
(I) II the stock, shares. memberships. or other equity interests
of the grantcc arc wholly-owned by the named lnsurcd,
(2) If me grantcc wholly owns the named lnsurcd,
{3) I f the grantcc is whoAy-owned by an aliiliatcd Entity of the
named lnsurcd, provided the aliilialcd Enliry and the named
lnsurcd arc both ++°ho11y-owned by the same person or En-
tity. or
(4) !I'lhc grantcc is a trustee orbcncficiary ofa trust created by
a written instnnncnt cstablishcd by the lnsurcd named in
Schcdulc A for cstatc planning. purposes.
(ii) With regard to (A). (B}. (C) and (D} resen~ing. however- all rigltts and
dclcnscs as to any successor [trot the Company would have had against
any predecessor lnsurcd.
(c) "lnsurcd Claimant": an lnsurcd claiming loss ordamagc.
{t) "Knou•icdgc"or"Known":aclualknou~Icdgc-notconstnrcuvckno+vlcdgcor
notice [hat may be imputed to an lnsurcd by reason of nre Public Records or
any othcrrecords Thal impart constnrcticc notice of matters al]ccling thcTillc.
(g) "Land": the land described in Schcdulc A. and aliixcd improvements that by
!au^ consliuue real propcrt}•. The term "Land" does not include any property
beyond the lines of the area described in Schcdulc A. nor any right. title,
intcrest, cslatc or cascntent in abutting streets. roads- a+~enucs. allc}•s. lanes.
ways or u•atcn+•ays. but dtis dues rmt modil}• orlimit the extent That a right of
access to and fiom the Land is insured by ibis polic}c
(h) "Nlartgagc': mor[gagc.dccd of lnul, tntst decd. orothcrsccuriry instnuncnt.
including one evidenced by clcclronic means aalhorizctl by law.
(i) "Public Records": retards cstablishcd tmdcr state statutes al Datc of Policv
for tJre perrposc of imparting conslnretivc notice oI' matters relating to real
properly to purchasers for +'aluc and n•itlrout Kno+vlcdgc- With respect to
Covered Risk 5(d}. "Public Records"' shall also include environmental pro-
Icction liens tiled in the records of the clerk of the Uuiled Stales District
Court for the district n'Itcre [hc Land is totaled.
{j) "Title"': Ott cstatc ar intcrest described in Schcdulc A.
{k) "Unmarketable Tire'": Title allcctcd b+- an alleged or apparent mailer that
would permit a prospective purchaser or lessee of the Title or tender on the
Title l0 6c released from the obligation to purchase, Icasc or lend if there is a
catlraclual condition requiring the delivery of marketable title.
CONTINUATION OF INSURANCE.
The coverage of this policy shall cominuc in force as of Dale of Policy in favor of
an Insured, but only so long as the lnsurcd retains an estate or inlcrest in dtc Land.
or holds an obligation secured by a purchase money Mortgage given by a purchaser
from the lnsurcd, or only so long as the lnsurcd shall have liability by reason of
watranlics in any transfer or convcyancc of the Title. This policy shall not cautinue
in force in favorofanypurchascr from the Ensured ofeither(i) an cslatc orinlcrcst
in the Land, or (ii) an obligation secured by a purchase money Mortgage given to
the lnsurcd.
3. NOTICE OFCLAIiN TO BE GIVEN Sl` INSURED CLAli1'lr\,~'T:
The lnsurcd shall notify the Company prampdy in writing (i) in case of any litiga-
tion as set forth in Scclion 5(a) below, or (ii} in case Knowledge shall come to an
lnsurcd hereunder of any claim of title or intcrest that is advcrsc to the Title, as
insured, and that might cause loss ordamagc for +vhich [hc Company may 6c liable
by virtue of Ibis policy, I f the Company is prejudiced by the failure of the lnsurcd
Claimant to provide prompt notice, the Company's liability to the lnsurcd Claimant
under the policy shall be reduced to the extent of the prejtrdicc.
When, aRcr the Datc of the Policy, 9tc lnsurcd notifies the Company as required
hcrcin ofa lien, cncumbrancc. advcrsc claim orolhcrdcfccl in Tide insured by this
policy that is not excluded or excepted from the covcmge of this policy-the Com-
pany shall promptly invcsligale Iltc charge to dctenttinc u•hclltcr the lien. cncum-
brancc, advcrsc claim or dcfcct or other ntallcr is valid and not bamd by la+v ar
statute. The Company shall notify the lnsurcd in writing. within a reasonable tintc.
of its determination as to the validity or invalidity of the Insurcd's claim or charge
under fife policy. if the Company concludes Thal fife lien. cncumbrancc, advcrsc
claim or dcfcct is not covered by this policy. or u•as olhcnvise addressed in the
closingoflhc transaction in connection with which lhispolicy u•as issued, the Com-
panyshall specifically advise the lnsurcd ol'Ihc reasons 1'or its determination. i f the
Company concludes that the lien. cncumbrancc. advcrsc claim or de1cG is valid.
the Company shall lake one of the lollowing actions: {i) instinnc the necessary
proceedings to clear the lien, cncumbrancc. advcrsc claim or dcfcct from the Title
as insured; (ii) indcmnil'y the Insured as provided in this pulic}•: Iiii) upon paymcnl
ol'appropriatc premium and charges thcrclarc. issue to the lnsurcd Claimant er to a
subscgtrcnt owner. mortgagee or holder of dtc estate or inlcrest in the Land lnsurcd
6y this policy, a policy of title insurance +vithow csccption for the lien, cncum-
brancc, advcrsc claim ordclccl. said policy to be iu an amount equal to the current
value of the Land or, il'a loan policy: the amount of the loan: {iv) indemnify another
ligc insurance company in connection with its issuance of a policy{its) of title
insurance without exception for the lien. cncumbrancc. advcrsc claim or dcfcct: {vl
sccurca release orothcrdocumenldischarging the licn,cncumbrancc.adverse claim
or dcfcct: or {vi) undertake a combination of (i) throneh {v) hcrcin.
4. PROOF OF LOSS.
In the event the Company is unable to determine the amount ofloss ardamaee_ the
Company may. at its option. require as a condition of paymcnl dtal dtc lnsurcd
Claimant litmish a signed prool of foss. The prowl"ofloss muss describe the dcfcct.
lien. cncumbrancc or other maltcrinsttrcd against by this policy That constitutes the
7239$43 Owner's Policy afTillc insurance 1~ I }
SCHEDULE A
Name and Address of Title Insurance Company:
CHICAGO T1TLE INSURANCE COMPANY
P.O. Box 45023
Jacksonville, FL 32232-5023
File No.: 201101742 Policy No.: 44-905-'100- 201101742
Address for Reference only:
Lot 3 Pecan Street
Schertz, Texas 78154
Amount of Insurance: $39,917.00 Premium: 434.00
Date of Policy:June 10, 2011 11:50 am
1. Name of Insured:
City of Schertz, a Texas home rule municipality
2. The estate or interest in the Land that is insured by this policy is:
Fee Simple
3. Title is insured as vested in:
City of Schertz, a Texas home rule municipality
4. The Land referred to in this policy is described as follows:
Lot 3, Pecan Street Center Subdivision, City of Schertz, Guadalupe County, Texas,
according to the map or plat thereof, recorded in Volume 6, Page 629, of the Map and
Plat Records of Guadalupe County, Texas.
HQPA108 Rev 6/2Po8 GRG
SCHEDU~.E B
File No.: 201701742 Policy No.: 44-905-100- 201101742
EXCEPTIONS FROM COVERAGE
This policy does not insure against loss or damage (and the Company will not pay
costs, attorneys' fees or expenses) that arise by reason of the terms and
conditions of leases and easements, if any, shown in Schedule A, and the
following matters:
1. (Qeleted)
2. Any discrepancies, conflicts, or shortages in area or boundary lines, or
any encroachments, or protrusions, or any overlapping of improvements.
3. Homestead or community property or survivorship rights, if any, of any
spouse of any insured.
4, Any titles ar rights asserted by anyone including, but not limited to,
persons, the public, corporations, governments ar other entities,
a. to tidelands, or lands comprising the shores or beds of navigable or
perennial rivers and streams, lakes, bays, gulfs or oceans, or
b. to lands beyond the line of the harbor or bulkhead lines as
established or changed by, any government, or
c. to filled-in lands, or artificial islands, or
d. to statutory water rights, including riparian rights, or
e. to the area extending from the line of moan low tide to the line of
vegetation, or the right of access to that area or easement along and
across that area.
5. Standby fees, taxes and assessments by any taxing authority for the year
2011, and subsequent years, and subsequent taxes and assessments by any
taxing authority for prior years due to change in land usage or ownership,
but not those taxes or assessments for prior years because of an exemption
granted to a previous owner of the property under Section 11.13, Texas Tax
Cade, or because of improvements not assessed for a previous tax year.
6. The following matters and all terms of the documents creating or offering
evidence of the matters (The Company must insert matters or delete this
exception.):
7. Rights of parties in possession,
e. Any encroachment, encumbrance, violation, variation, or adverse
circumstance affecting the title that would be disclosed by an accurate
and complete survey of the land.
9. Visible and apparent easements not of record on or across the property
herein described.
10. Any portion of the property described herein within the limits or
boundaries of any public or private roadway and/or highway.
H0PB108 Rey 46/08 GRC
GF# 201101742
Owner Policy No. 44-905-i00- 201101742 Page
SCHEDULE B (continued}
17. Subj ect property is situated within the boundaries of the Cibolo Creek
Municipal Authority.
12. 25 foot building setback line along the front of subj ect property, as
shown on the plat recorded in Volume 6, Page 629, of the Map and Plat
Records of Guadalupe County, Texas.
13. 10 foot gas, electric, telephone and cable T.V. easement along the
front of subj ect property, as set out in Volume 6, Page 629, of the Map
and Piat Records of Guadalupe County, Texas.
i4. 10 foot electric easement along the rear of subj ect property, as set
out in Volume 6, Page 629, of the Map and Plat Records of Guadalupe
County, Texas.
15. Any and all unrecorded leases.
CHICAGp TITLE INSURANCE COMPANY
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YO13002 P~0902
-p09Ag~
SPECIAL WARRANTY DEED
THE STATE OF TEXAS §
§ KNOW ALL PERSONS BY TI~SE PRESENTS:
COUNTY OF GUADALUPE §
THAT SMITH & SONS, INC., a Texas corporation (the "Grantor"), for TEN AND
NO1100 DOLLARS ($10.00) and other good and valuable consideration paid and caused to be
paid to the Grantor by the CITY OF SCHERT~, a Texas home rule municipality (the "Grantee"),
the receipt and sufficiency of which consideration are hereby acknowledged and confessed by
the Gran#or, has GRANTED, BARGAINED, SOLD, and CONVEYED, and by these presents
does GRANT, BARGAIN, SELL, and CONVEY unto the Grantee, the real property located in
Guadalupe County, State of Texas and Comal County, State of Texas (herein called the
"Property", being. more particularly described in Exhibit A attached hereto and incorporated
herein for all purposes), together with all improvements situated thereon and all rights and
appurtenances pertaining thereto, including, but not limited to, any right, title and interest of the
Grantor in and to minerals, adjacent roads, alleys, rights-of--way, drainage facilities, easements,
and utility facilities, together with all permits, authorities, licenses, consents, and bonds, if any,
pertaining to the Property.
This conveyance is made subject and subordinate to the encumbrances and exceptions
("Permitted Exceptions") described in Exhibit B attached hereto arld incorporated herein by
reference for all purposes, but only to the extent they affect or relate to the Properly or any
portion thereof.
TO HAVE AND TO HOLD the Property, together with all and singular the rights and
appurtenances thereunto in anywise belonging, unto the Grantee, the Grantee's successors,
assigns, and legal representatives forever; and the Grantor hereby binds the Grantor, the
Grantor's heirs and assigns, and legal representatives, to WARRANT and FOREVER DEFEND
all and singular the Property unto the Grantee, the Grantee's successors, assigns, and legal
representatives against every person whomsoever lawfully claiming or to claim the same oz any
part thereof, by, through., or under the Grantor but not otherwise; subject, however, to the matters
set forth herein.
EXECUTED on the date of the acknowledgnnent of the Grantor set forth below, to be
effective for all purposes, however, as of ~'.~+y~ 7`, 2011.
GRANTEE' S ADDRES S
GRANTOR:
City of Schertz, Texas
1400 Schertz Parkway .SMITH & S S, INC.
Schertz, Texas 78154
After Reeordin Return To; gy;
Carol F. Smith, President
~' Ka-~n ~~ Ta~k
Fulbright & Jaworski L.L.P.
300 Convent, Suite 2200
San Antonio, Texas 78205
CAcknotivledgment of Grantor on Next Page ~
5041 18.12.2
~0~3002 P6o903
THE STATE OF XAS
COUNTY OF ~~
I, ~ 1'l~.l~f`~ a notary public, do hereby certify that Carol F.
Smith, Presi e of Smith & S s, ., a Texas corporation, personally appeared before me this
day and acknowledged the due execution of the foregoing instrume t.
Witness my hand and official seal this the ~ day of , 2011.
(PERSONALIZED SEAL)
~s~ AIJIBARNI•
.+. +: MY GOMh115510N E7(PIFlfCS
,~~ ,- July 9,2013
"''lf ~4;,~~
l
Public in and or the
My commission
of Texas
0~0//
soai~ai2.2
~0~3002 P~o9o4
EXHIBIT 0fA"
Leval Description
PECAN STREET CENTER, LQT 3, 1.007 AC.
Also Described As:
Lot 3, Pecan Street Center Subdivision, City of Schertz, Guadalupe County, Texas, according to
the map or plat thereof, recorded in Volume 6, Page 629, of the Map and Plat Records of
Guadalupe County, Texas.
50411492.3
Y0~3002 PG0905
EXHIBIT "B"
Permitted Exceptions
1. 25 foot building setback Iine along the front of subject property, as spawn on plat
recorded in Volume 6, Page 629, of the Map and Plat Records of Guadalupe County,
Texas.
2. 10 foot gas, electric, telephone and cable T,V. easement along the front of subject
property, as set out in Volume 6, Page 629, of the Map and Plat Records of Guadalupe
County, Texas.
3. 10 fact electric easement along the rear of subject property, as set out in Volume 6, Page
629, of the Map and Plat Recards of Guadalupe County, Texas.
Cam, ~ 11~e
~Zo ~ ~~~~
FIE.ED F01'Z ftFC01tD
10 A I~' S0
IH1Y C~ R~ G~ADAL L COUNTY
1
SATE OF 7FJCA5
COUNTY OF GUADALUPE
I Cdnif)r lhla Inslrumerd wss FILED orl Y1e
tlA1e arttl a! the time damped Thereon and
1N>ts [tiny recorded Iq the al6dal Public
Fteoord~ oT Ciuadelup6 C01w~~tyfTe~r~aa.
uoJpYYCp~~ ~Y.RJC
~' TERFSAIGFI.
Guetlalu~B Courrty Clerk
~~OF
509114923