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Agenda - 06-07-2011 - 5p
ORANGE COUNTY BOARD OF COMMISSIONERS ACTION AGENDA ITEM ABSTRACT Meeting Date: June 7, 2011 Action Agenda Item No. SUBJECT: Approval of Contract to Purchase Real Property from Joseph T. Forrest DEPARTMENT: Planning and Inspections PUBLIC HEARING: (Y/N) No ATTACHMENT(S): 1. Vicinity Map 2. Appraisal Summary with Maps 3. Offer to Purchase and Contract 4. Plat Map INFORMATION CONTACT: Craig Benedict, 245-2592 Kevin Lindley, 245-2583 PURPOSE: To authorize Orange County's purchase of approximately 1.3 gross acres (1 acre net) from Joseph T. Forrest for the location of the Central Efland Phase 2 Sewage Lift Station. BACKGROUND: The design for the Central Efland Phase 2 Sewer System requires the location of a sewage lift station at a low elevation in the new service area. This permits a lower cost and larger gravity flow system. The location chosen by the design consultants, Coulter, Jewell, and Thames, is on the Joseph T. Forrest property east of Brookhollow Road and south of McGowan Creek. Now that the design has been approved by the state for the overall system, the land needs to be acquired before construction. This minimum area for the lift station that is unencumbered by right-of-way is one (1) acre, so with the internal right-of-way easement the land in 1.3 acres t (See Lot 1). Following months of discussions on contract terms and conditions, Joseph T. Forrest has agreed to sell the land to Orange County for $25,000 consistent with a market appraisal of the property (Attachment 2). A purchase contract has been signed Joseph T. Forrest and is provided as Attachment 3. Some of the negotiations addressed the need for a minor subdivision to breakout the smaller parcel, future access to the sewer system, other easements on the larger parcel, and the disposition of an old undeveloped road right-of-way which is being reoriented for better visibility in the future. A boundary survey and plat of the site is a prerequisite to complete the transaction and has been completed by the Coulter, Jewell, and Thames survey. (See Attachment 4 Plat Map.) A Phase 1 environmental site assessment would also be conducted prior to closing. If approved, closing on the property would occur on or before June 30, 2011. 2 FINANCIAL IMPACT: Funds are within the Efland Sewer Expansion Fund to cover the costs of the purchase and accommodate the other in-kind and/or contracted professional services of subdividing, recording, and closing, which will amount to $6,000 in addition to the $25,000 purchase price. RECOMMENDATION(S): The Manager recommends that the Board: 1. Approve the purchase of approximately 1.3 acres; 2. Authorize the Chair to sign the contract on behalf of the County, subject to final review by staff and County Attorney; and 3. Instruct the County Attorney and staff to schedule and complete a closing on the property expected to occur on or about June 30, 2011. Joseph T. Forrest ~, qty rope achment ~_ ~~/ Vicinity Map 9855003'I59 ~ `~O~Ah T. Forrest- Pri ' Streams rty Parcels N ~ inch = 250 feet ~ ` 0200 F et# a-ange County pan _ ~ Ma ~n9 and In P Prepared b1' Brian Cdrsq~ 6/1/2 pll~nt Attachment 2 -Appraisal Summary with Maps Scott W. Dorsett P.O. Box 987 Hillsborough, NC 27278 May 3, 2011 Orange County P.O. Box 8181 Hinsborough, NC 27278 Re: Property: Brookhollow Road (1,369 ac+/-) Efland, NC 27243 Client Orange County File No.: Orange County/2011 In accordance with your request, I have appraised the above refererxed property. The report of that appraisal is attached and the appraised value is: 525,000. 'The purpose of this appraisal is to estimate the market value of the property desrxihed in this appraisal report, as improved, in unenamhered fee simple title of ownership. 'This report is based on a physical anaysis of the site and improvements, a locational analysis of the neightmrhood and city, and an economic analysis of the market for properties such as the subject. The appraisal was developed and the report was prepared in accordance with the Uniform Standards of Professional Appraisal Practice. 'The value conclusions reported are as of the eRedive date stated in the body of the report acrd contingent upon the certification and limiting conditions attached. It is my opinion that Orange County's offer to allow Mr. Forrest to hook onto sewer for other property that he owns in the area should fairty pmpensafe him for any damage caused by the installation of the sewer lines along his remaining property. I assume the pump station, when completed, will be adequately acrd property landscaped so as to minim¢e any negative impact on the area, whether visual or noise related. I cannot calculate the positive impact to Mr. Forrest that sewer availability will have on any future development plans for his remaining property, but I assume with reduced lot size requirements due to the sewer availability, the end result should be very positive. =~Res~pectfu~lly S`ubm--i~~tted, ./ -~ w• Scott W. Dorsett Appraiser 1QtP~RQf.~kt. ®~ R~l~. ~R~p~R`~ L6iNrDi i G6a ~~~ Srooknoflow Road {1,36S ac+t-} PIN #3855-0Q-3t5B, Orange Coun(~r {Pareart Parcel} Efland, NC 27243 ~D~i: Orange Couniy P,O. i3ox$18. Hillsborough, NG 27278 ~.~ d~: Apr!! 25, 24}94 g~: Scott W. f3orseil Appraiser A7Q2 qE Ce BTfe Y~ ~ ap.,AffRY~,~o°4Jt +t ~ A762 ,", ,& N ~E r4Rbi~~Y 4t ~ 'i.J% Sl~7E ~~~ ~~~ ~fi~r~L ~~P Eortn GAt - KQTAt, for Windows° appraisal software ny a to made, inc. -1-8~-.ALAfdDDE Dorsett Appraisals A Consulting LAND APPRAISAL SUMMARY REPDR7 a C lrWill /LV 1 1 Address: t3rootdragow Road 1.369 ac+l- . Efland Stale: NC f>ode: 27243 • Ora D 'on: PIN ~J855-00-3159, O e Count Parerrt Parcel }' AssessofS Parcel #: NIA Tax Year 2010 R.E Tares: $ 81.41 S ' I AsseSSrtlErrtS: S N/A Marke4 Area fits: Efiand Al Reference: 00-E-125'IDC CenSUS Tract N/A ~ Grrrerd Owner d Record: J T. Forrest f3onmrer NIA r A Pro' T i PUD !, De Mmimis PUD ~ Otisr Eesathe HOA: $ ~ per .mntdh Are then: any e>ostfng improvemerrts to the property? ~ No ^ Yes q Yes, jndreale cuRerd ocwpancy: ^ Owner ^ Tenant ^ Vacant ^ Not habiUble q Yes, give a brief description: N/A z ~ The se of th's le to an "ion of ~ Madte<V~ue as , flr ~ -outer of value descrthe This repoR reflects the # value not CtureM, see carnrlerrts : : Currerd trr t)ath is the t7fective Dale P ~ Fee S' ~ Leasehold -' lsacetl Fee ~ Other descnLe . Ifdended Use: To determine the subject's market value for a possible private sale from current owner Joseph T Fonest to Orange County for a ~ sewer station. a Ntended User(s) (by name ortype): Ora a Cou and its asst talent Ora Cora Address: P.O. Box 8181 tiRlsboro N C 27278 'ser: Scott W. Dorsett Address: P.O. t3ox 987 H7~bo h, NC 27278 dtaraderistics Location: ^ Urtran ^ Sntmrbart ~ Rural Predorrarprtt Ors-UnRHoosktg PR1Gf AGF Resetttiandllse Onei~ 35 % GtangeatL~tdt1~ ~ Not tritely Built up: %' Dver 75% ~ 25-75% ^ lkrder 25% ~' Owner 95 $(0(fiij (yrsj 2-4 Unit % ^ Lrkely ` ^ M Process Growth rate: !~; Rapid ^ Stable ~ Slow ;_ Tenard 5 100 Low 1 Multi-lint[ % ` To: Property values: ^ Increasing i=; Stable ~ Dedirgng ^ Varant (0,5%) 500+ ifii 50+ t,orron'I >1 % DemandJsuppty: J Shortage In Balance ~ Over Supply ~ Vacant (>5%j. 50-250 Pred 10-30 Vacant 64 % Marketing time: ^ Under 3 Mos. 3-fi Mos. ~ aver fi Mos. % z a ~ m n w Q Factors Affecting Marketability t-~-t-n Good Average fair Pwr N(A ~ 6aod Averse Fair Poor N/A 6npleymerd Stab!Tdy J ~ i ii Adequacy of UbTdies ; ~ !~ ^ Convenience ffl Errgrloyment ~ ~ ~ ^' ^ Property Compabbiliry J ~ ^ ^ ;^,: Camenlence to Shopping ^ ~ ^ ^ Protection from Detrimer!tal Conditions ^ ~ ^ ^ ^ Convenience to Schools ^ ~ ^ ^ _ Police and fire Protection ^ ~ ~ n, ^ Adequacy of Public Transportation !^ ~; ^ _ Geroera[ A~earance of Properties ^ ~ ^ Recxeationa Facilities i g Jj _ to Mada;t ~ ^ ~ j ~ m Market Area Commends: The subject market area is defined as a three mile radius around the subietk prpperty The Etlar~ area of Orange ~ County is cornenientto stropping trtediral foci rI'bes schools and employment m HiBsbomugh Chapel HiN and Drrfiam The area es ~ established and stable and surround'mg Drooerties appear to be well maintained. The martcet demand for the Efland an>a of Orange Courtly is considered average with typical marketing times similar to ff~e the oountv average Banks and other lending instdutions cordirrue to decline opporhrnities to finance raw undeveloped land as indicated try lire tlxee comparable sates listed in this report (All are rash sales) There are currently 476 residential land parcels for sate iR Orange County vvittr only six under contract Okrsnsions: 139.2T x 400.49 x 481.84' Site Amer: 1-369 Arms Zoning Classification: R-1 (Orange County Jurisdiction) Oescdptiore Residential (40,000 sR minimum lot size) "Acreage cakarlations from Jeff Williams, of Coulter-Jewell-Thames, PA" Do present improvemerds canply with e>osleig inning requiremerds? ~; Yes L No ^ Ne Improvements Uses allowed under current inning: Single family residential Are CC&tis applirabt? IJ Yes ~g No ^ Unknown Have the documerds been n:rie~d? ^~ Yes -i No Ground Rerrt [d applicable) $ Commends: Highest 6 Best Use as improved: I~ Present use, or ~ Olheruse (e~ain) z 0 Actual Use as of Effective Date:. Vacant tot Use az appraised in this report As tuned R-i. Summary of Highest 8 Best Use: Orange County zoning allows single family residential usage. i = a ~ G w Otifdies Public Other Prmida/Description 6ectricity '~ Gas ! Water i i ^ Oranrre Htamance Sanitary Sewer j lI ^ Needs Private Stain Sewer ^ ^ Telephone ^ ;=! Multimedia ± i O(f-stle Improvements Type Public Private Sheet Asplratt ~ (' Width Surface Curb/Guder Sidewalk _ ^ Sheet Lights ^ I Ftnntage Adequate Topography Ro)fin Size T fiat for ttre area Shape Trig ularJSee attached ma . Dra6iage A rs ad ogle View Rural scenefAvg other sikle ~ lrmde Lot Coma tot C Crd de say ~ lArdergroiuid t»s ~ Other describe FEMA ?1 Flood Hanrd Arta I i Yes No F~A9A Fkiad Zone C FHutA Map ?FIRM Parre1965M9655 FEtOA Map 0ate 2-2-2007 Site Commems: The subied is a wooded tnn7dmp lot whose eastern boundary is Oak SVeeC an unbuitt public road, as shown on Vie attached survey- t assume the subied bt has reasonable soil grrality that would sustain a private three tredrooin conventional septic system per Orange County Health Dept. standards. No adverse sde conddiorrs were observed during my site inspection. ~L~ E'+$ 6..~ 0o~'rl~ 2BPl M a to mode, inc.7his tam maybe repioduc~ aimadf~ weMat wridnn Danaissmn, huaever, a m moue, trc.mestbe auonwteopev arw ~. Form GPLND -`TOTAL for Windows' appraisal software by a le mode, inc. - l-BOO-ALAMODE 3/2007 L AND APPRAISAL SUMMARY REPORT My.resP.arch ^ ~d d~ twt n~ arry prtar sales or transfers d the FikNa: a Count 12013 subjectproperty for the flues years prior to the t11ec6ve date d this appraisal. ~ Dam Source s. O 1st Prior SWr' Sale/Lramler Anatysis of sale/transfer history andlor any arrrerd agreement of sale/listin : N f ~ g one ound, v i Dam: NIA ~ Prke: W $pl S: Z 2nd t~ri0r $a ' Sa~/TralrSftr Dad: ~ r- N!A Prke: Sou s fEATURF SUBJECT PRf1PH31Y t'AMPARABt# NO. t COAtPAiiABLE ND. 2 COMPARABLE N0.3 Address Brookhoibw Road (f.369 ac+!-) Lot #12 Mallory Place Lot 32-33 Gn~rrtree Drive Waxstaff Road Efland NC 27243 . Mebane NC Hillsboro h NC Cedar Grove NC . to Su ct 7 miles W +!- 6 m0es f +/- 6 mites NW +/- Sate t'dce $ 250 $ 24 $ 25 DDO PdCe/ Atte S $ 23 5D0.00 $ 48 D39.22 27173.91 Data Source(s) Inspection! MLS #1706476 MLS #1703224 MLS #1691310 Veafiration Source(s) Res~rch Ptrbtic Records Public Records Public Records VALUE A0.1UST1JI81T #SCRIPTION t)ESCR{PIION +(-) S Adjust fIESCRB'fmN +(-) S Adryst DESCRIPi70N +(-) S AdJust Sales or f1narwing Cash Sale Cash Sale Cash Sale x Canctssions .None Assumes None None None o Date of SaleJtane ' 25.2011 Closed Ma /2010 -2 500 Closed 1=eb12D11 Closed Jaral201 D -1 750 ~ ed l=ee S" le Similar Sinnlar Simiar na. Loca~n fRand/A S trot -7 500 SimrTar Similar Z Site Arta Arles 1.369 adA 1.5 adSim .St adSim .92 arlSim yO }•f Use Residential . Similar Similar Similar tY None Sumlar Similar Similar Qa Road Ttonm StatelPaved S'unilar Similar Similar 0 w Tdet Ad' tmerd omi, in ~ + - -10 000 !^ + - S ~ + ~ - S -1 750 Nc4 28.4 % Net % Net 7.0 % °0 'sled Sak Price n Gross 28.4 % $ 25 25fl Gross % S 24 500 Gross 7.0 % 23 250 Summary d Sales Comparison Approach Recent, similar, dosed lot sales in the subject nerghbofiood area vmre scarce She three sales i'rsted above were chosen from seven total sates anaHzed and are considered the best irxiicators of the sutaiects value liWrvidual adpsbnents were r>eoessary where differences befuveefr the sut>jeCt and cornparables exist and were made axgrdingly Alf three crnrtparatrles are surrilar to the subject in timeldate of safe general size curtent zoning general location within the subject market area, and are given equal consideration in this report Comp. #1 iS carsidered superigr in location. as it IS located within an establjsfied suhdivrsion corrrmunity with protective tbVenani5 and NOA. Lot srze does not parallel value wittrin the Subject market area Please see the attached Sales Comparison and Demographics addenda for additiorrat comments and condusiorrs. PRO~CT1Nf-~tNAdtd~l fOR PUDs rf The Sub' is of a Planned Urdt Deveio ment. G Le Name of N!A a Descdbe common elemems and recreational facditles: Indieafed Yalue trjc Saks Catttparfsolr Approadr $ 25,000 Fnal Reconciliation The Sales Comparison Anah+sis indicates a canoe of value of between $23,250-$25 250. Based on my n~view of all data G available arxt gnat ed, final reconabation indicates the su " vahre of $25,000. a This appraisal is made ~ "as Is", or ~ subject to the talfowmg conditions: '"'1 assume 1~a1 subdivision of the subject parcal from its parent trail, ~ and soil quality satisfactory to sustain a private three broom septic system ~ Orange County Heal6r Dept. standards "` v i ~ Tlrlss report is also m Omer a1 Cor~diorrs anNor Extraad s as specfied In the aimdr~ addenda. Based tgfwr an inspection d the su(tjed f defined Scope of Work, Statement of Assnmp6orrs and thrwting Cardfiorrs, acrd Apprarset's t~r0ificafiorts, a Market vattre (or other y~ae type}, as defined trerein. -of the real property that is the subject of this n~ort i>~ ~ ~ (om9 ~n s 1 O a ~ ' ~1 ~ ' s ~ ~ if irrd ttgs ' " of vase is - ro egnaffi arrd / or ia,clnded r x A true and corr4rlete cePY of this r~Ort conWrrs 14 pages, including e>dnbds wtach are cgnsrdered an integral paR of the r~OtL This apprasal report may cwt be a propedy understoed witlwut refeaence to me infarma8on comained in me cmrrplem n'QoA, which contains me following attached txtriMls: ^ Scope of Work LimBing CondlCertifwations I ; Naaative Addendum g Locatiar Map(s) -flood Adder~um ~ AddrUonal Sales Q Photo Addenda ~ ' Pa[cel M r'' ~CgrldNOnS ;J `} Client Cotdact C Benedict CBent Name: Orange Courtly E-Mali: P.O. Sox 8381 Hr71 h NC 27278 APPRAISER ~'~ ~ ,.jr Ce F SUPERVISORY APPRAISER ZN required) •E ; r/F ~ S ~ ~ ' or CO-APPRAISER (rf applicable) y ~, , ab e r,y .k ,`, A702 ; it upervisory or W set Name: Scoff W. Dorsett ~o ~~ r ~ ~ ~ Apprai .r ~ 4c Co-Appraiser Name: ~ Company: S rf~r ff ~ Company: Phone: 919-88t1-96flQ Farc 919- "'r Phone: Fate ~ E-Mall: sdorsett d.rrtbm E-Mail: ~ Date of Report (Signature): April 25, 2D11 Dam of Report (Signaaure): License or Certification #: A702 Stain; NC License ~ Certificaton #: Stall: Designation: State Certfied Resbential Designation: Fxpiratiar Date of License or Certification: June 30, 2D11 F~iratlon Date of Ucense or Certification: 1nsp~tien d Sub~ct '~i Did hrsped =; Did Not Inspect (Desktop) Inspection of Suh)ect: ~ Dfd Inspect ^ Did Not Inspect Date ~ hrspectign: ZS 2011 Date of Inspection: ~~~ _ ~ d:mutiefd®?11nr Ma la.modz ix. ills tam ~v fa n uma~firax~tm~d ruratrnanntisson. Inarevv. ala mode. tic. mid he aclmmrledad and aM~d ~~ ~~$~ ~ frorm 6PLND - ~OTAI fa Wmdows• appraisal software by a is mode, inc. - t-s~-ALAMDDE 7 Dorset Apprarsals ix Cwtsuiting Bortawer NIA fine No. Ora !2011 Adr&ess Brookhotbw Road 9.369 ac+l- Efland Oran State NC Code 27243 Lender/CrrerR Ora Co APPRAISAL AND REPORT IDENTIFICATION lfrls Appraisal Report is ~ of Ute following types: Seff Cordinned {A written report prepared under Standards Rule 2-2(a) , persuantto the Scope of Wodc, as disclosed elsewhere in this report.) Summary (A vmtten report prepared under Standards Rule 2-2(b) , persuantto the Scope of Wori4 as disclosed elsewhere in this report) Restricted Use (A written report prepared under Standards Rule 2-2{c) , persuantta the Scope of Work, as disclosed elsewhere in this report, restricted to the stated irRended use by the specified clierrt ar intended user.) Comments an Standards Ruie 2-3 1 certify that, to the best of my knowledge and belief: • The statemertth of fact cordained in this report are Prue and correct -The reported analyses, opmions, and conclusions are runited oNy by the reported assumptions and Uniting conditions and are my personal, impartial, and unbiased professional analyses, opinions, and conclusons. • I have nc (or the specified) presets a prospective irderesi in the property that is the sutgect of this report and no (or the specirred) persatal rttterest with respect to the patties involved. • I have rw bias wdh respect to flu: pro~rty that is the subject of this repot ar the parties krvoNed with this assignment - My engagement in this assignment was rot corrtingerR upon developing ~ reporting predethrmined results. • My compensation for completing this assignmrrrt is not contingent upon the developmerd a reporting of a predetemdned value or direction in value ihd favors the cause of the cUerd, the amourd of ttre value opkdon, the adairrmerd d a slipdated result, or the accunence of a subsequent everrt directly rdared to the intended use d this appraisal. - My analyses, opinions aril conclusions were developed and this report has been prepared, in cmdarmiry with the Uniform Standards d Professional Appraisal Practice. • 1 have (ar tuwe nory made a personal inspection of the property Thai is the subject cl this report - No one provided signdicarrt real propedy appraisal assistance to the person signing this certfUcation. (tl there are exceptions, the name of each individual providing signficant real properly appraisal assistance is skated elsewhere in this report) Comments on Appraisal and Report Identification Note any USPAP related issues requiring disclosure and any State mandated requirements: APPRAISER: SUPERYISDRY APPRAISER (only if required): Signamte0"~ "' ~`? ~ v SignaWre: Name: Scott W. Dorsett Name: Date Signed: Apn"I 25, 2011 Date Signed: State Certification ~: A702 State Certification ~: or State Licerse ~: or State Ucense #: Slate: NC State: FxpQafion Dale of Certifxation or Ucense: June 30, 2011 Expitdion Date of CertRcatiat or License: Supervisory Appraiser inspection d Subject Property: Effective Date of Appraisal: Apr! 25, X11 ^' Did Not r Exterior-0nly from sheet ;_; Intedor and E>derior Form ID06 -'TOTAL for Windows" appraisal software by a la mode, inc. - t-BDD-AIAMODE 9 DEFINITION OF MARKET VALUE: The most probable price which a property shwid bdng in a competltive and open marlret under all conditions requisite to a fair sale, the buyer and seller, each acting prudently, knawledgeabty and assuming the pdce is not affected by undue stimulus. ]mplictt in this definition is the crosumnrafion of a sale as of a. specified date and the passing of title from sects to buyer under cond'Nars whereby: (1) buys and seder are typically motivated; (2) both parties are wed informed a w~ advised, and each acting in what he considers his own best irderest; (3) a reasonable time is allowed for exposure in tl>e opar market; (4) payment is rtw~ in terms of cash in U.S. dollars a in terms of financial artangemerds canparable thereto; and (5) ttre price represerds the normal consideratiar !a the property sold uroffanted by specal s creative fmanciaj or sales concessions' grarded by arryrone assocaated with the sale. ' Adjrrstrnerds to the comparables must be made fs special a creative finanang or sales concessions. No arfjustmerrts are necessary for those costs wldch are normally paid by sellers as a result of tradition s law in a market area; these costs are readity idenfiflabie since the seller pays these costs in virtually ad sales transactlons. Special or creatlve financing adjustments ran ~ made to the comparable property by comparisons to financing terms offered by a third party institutional lender that is not already involved in the property or transaction. Any adjustment should not be calculated on a mechanical dollar for dollar cost of the finanang a concession but the dollar arrwunt of arty arrjusbrread should approximate the markets reaction to the financing a concessions based on the appraiser's judgement STATEMENT OF LIMITING CONDiTfONS AND APPRAISER'S CERTIFICATION CONTINGENT AND LIMITING CONDITIONS: The appraiser's certification that appears in the appraisal report is subject to the following conditions: 1. The appraiser will not be responsible for matters of a legal naWre that affect edher the property being appraised or the title to d. The appraiser assumes that the title is good and marketable and, therefore, mTl not render any opinions about the title. The property is appraised on the basis ~ tt being under responsible ownership. 2. The appraiser has provided a sketch in the appraisal report to show approximate dimerrsiorrs of the improvemerts arM the sketch is incWded onty to assist the reader fi the report in vrsualzing the {xoperly arrd understanding the appraiser's determination of its sits. 3. The appraiser has examined the available tbod maps that are provided by the Federal Emergency Managemem Agency (or other data sources) acrd has noted in the appraisal report KrtieBre the sub~ct site is located in an identified Special Rood Hazard Area Because the- appraiser is not a surveys, he or she makes na guarantees, express or implied, regarding this determination. 4. The appraiser will not give testimony a appear in court because he or she made an appraisal rk the property in quesbon, unless specific aramlrmeNs to do' so have been made befanehand. 5. The appraiser has estimated the value of the land in the cost approach at its highest and best use arM the improvemeits at thek contributory value. These s~arate valuations of the land and knpmvemeds must n~ be used in conjunction wdh any athe appraisal and are invalid 'd they are so used. 6. The appraiser has noted in the appraisal repel any adverse conditions (such as, needed repairs, depreciation, the presence d hazardous wastes, toxic substances, etc.) observed dudng the inspection of the subject property or that he a she became aware of dudng the normal reseamh involved in perfomdng the appraisal. Unless otherwise stated in the appraisal report, the appraiser has no knowledge of any tiniden s unapparerrt conditons of the property a adverse ernkonmental conditions Including the presence of hazardous wastes, toxic substances, etc.) that would make the property more s less valuable, and has assumed that there are no such conditions and makes no guarantees or warranties, express s impied, regarding the condition of the property. The appraiser wit rrot be responsible fa any such conditions that do exist ar for any engineedng or testing that might be required Zo discover whether such conditions exist Because the appraiser is not an expert in the field of environmerdal hazards, the appraisal report must not be considered as an erwironmerital assessment of the property. 7. The appraiser obtained the firformation, estimates, and opinions that were expressed in the appraisal report from sources that he a she considers ro be reliable and believes them to be we and correct The appraiser does not assume responsibility fs the accuracy of such items that were famished by other parties. 6. The appraise will not d'~srAose ttie contents at the appraisal report except as provided for in the Uniform StandaNs of Professional Appraisal Practice. 9. The appraiser has based his a her appraisal report and valuation conclusion fs an appraisal that is subject to satisfactory completion, repairs, or atteratlons on the assum~on that completion of the irtiprovemems will be performed in a wodmianlike manner. 10. The appraiser must provide his or her prior wdtten consent before the lendeldient specified in the appraisal report corr. distribute the appraisal report (including conclusions about the property value, the appraiser's identity and professional designations, and references to any professional appraisal organizations a the firm w8h which the appraiser is associated) to anyone other than the borrovrer, the mortgagee s its successors and assigns; the mortgage insurer, consuttaids; professional appraisal onganirations; arty state a tederady approved flnancial instindion; a arty department, agency, s insWmemafdy of the United States or any state a the District of Columbia; except that the IenderJcilem may distribute the properly descrfption section of the report only m data codedion a reporting service(s) without fiaving to obtain the appraiser's prior written conserd. The appraiser's wr8fen consent and approval must also be obtained before the appraisal can be conveyed by anyone to the public through advertising, pubic relations, news, sales, or other media. Freddie Mac Fann 439 6-93 Page 1 of 2 Fannie Mae Forth tD048 6-93 Dorsett Appraisals & Consuttinig Farm ACR -'TOTAL for Windows" ~pralsal software by a la made, inc. - i-800-ALAMODE ~o APPRAISER'S CERTIFICATION: The Appraiser certifies and agrees that 1. I have researcfed the subject market area and have sele~d a minmum of three recent sales of properties most similar and prom to the subject property for wnslderation in the sales comparison analyse and have nrede a dollar ad)usimert when appropriate to reflect the market reaction to those hems of sigreficard vadatlon. f a sigrrireard ilern in a comparable Ixoperty is supedor to, a rrrore favorable than, the subject property, I have made a neg~ve ~justrnerd to reduce the adppted sales pdce bl the comparable acrd, i a signRcard ilem n a comparable property is irterlor to, or less favorable than the subject property, I have made a positive adjustmert to increase the adjusted sales price of the wmparable. 2. I have taken inro consideration the factors that have an impact on value kr my developmerd of the estimate of market value in The appraisal report I have not krrowingly withheld any signficant krformation from the appraisal report and I believe, To the best of my krwwledge, thffi all stalemerds and information in the appraisal report are true and coned 3. I stated in the appraisal report only my own personal, unbiased, and professional anatysls, opinions, and conclusions, which are subject onty to the contingent and Ikniting condiions spedrfuM in this form. 4. I have ne presert or prospective interest In The properly chat is the subject to this report, and I have no preserd or prospective personal irderest or bias with respect to the participards in the transaction. I did not base, either partially or completely, my analysis and/or the esimate of markr.4 value In the appraisal report on the race, cola, reFigion, sex, handicap, famiial status, or national origin of either the prospective owners or occuparts of the subject property or of the present owners or occupams of the properties in the vicinity of the subject property. 5. 1 have na present or caderrrplated future irterest N the subject property, and neiirer my canard or future empbymert nor my compensation for perfanning this appraisal is condngerd on the appraised value of the property. 6. I was not required to report a predetwmined value or dkecion in value That favors the cause of the Giert or any related party, the amourt of the value estimate. the aialnrrrert of a specific result, or the ocWrrence of a subsegrrert event in order to receive my compensation andtor employmerd for pertormhig the appraisal. I did not base the appraisal report an a requested minimum valualbn, a specific vaWation, or the need to approve a specfc mortgage ban. 7. 1 performed this appraisal in confomrity with the Un'rfonn Standards of Professional Appraisal Practice that wen; adopted and promulgated by the Appraisal Standards Board of The Appraisal Foundation and that were th place as of the eiectlve date of iris appraisal, with the exception of the deparhrre provision of those Standards, which not apply. I acknowledge that an estimate al a reasonable time fa exposure in the open market le a condition n the defmifion of market slue and the estknate I developed le consistent x4it the madreting time noted in the nerghbofiood section of this report, unless I have otherwise stated in the reconaliation secion. 8. 1 have personaiy inspected the irdedor and exterior areas of the subject property and the exterior of all properties Fisted as conrparables in the appraisal report I further certify that I have noted any apparerd or Imown adverse condiiorrs in the subject improvements, on the subject sde, or on arty site within the immediate viciruly of the sub~ct property of which I am aware and have made adjustinents far these adverse conditions in my aralysis of the property value to the extent that I had market evidence to support them. I have also commerded about the effect of the adver~ condilens on the marketabiity of the subject property. 9. I personalty prepared ~ conclusions and opinions about the reef estate that were set torch in the appraisal report i I relled on signiticard proFessiorral asalstance hom any individual or irrdviduals in the perfomrarxe of the appraisal or the preparation Af the appraisal report, I have named such indiridual(s) and disclosed the specific tasks pertorm~ by them in the recondliatien section of this appraisal report. I cerify that any individual so named is qualifred to perform the Tasks. I Crave not authored anyone to make a change to arty item in the report therefore, 'rf an unauthorized change is made m the appraisal report, I wit take no responsibllhy for i. SUPERVISORY APPRAISER'S CERTIFICATION: i a supervisory appraiser signed the appraisal report, he or she certifies acct agrees that I directly supervise the appraiser who prepared the appraisal report, have reviewed the appraisal report, agree with the stalemems and conclusions of the apps"ssr, agree to lie bound by the appraiser's certiicatlons numbered 4 through 7 above, and am taking toll msponsr~rTity for the appraisal and the apprasal report. ADDRESS OF PROPERTY APPRAISED: Srook#rotlovr f2oad (1.369 ac+1-?. I~tarrd 1dC 27243 APPRAISER: Signatu~ `~' Name: Stott W. Dorsett Date Signed: Apra 25 2011 State Certification ~: A702 or State Ixense #: State: NC Expiration Date of Certification or L3cerrse: June 30, 2011 SUPERVISORY APPRAISER (only if required): Signature: Name: Date Signed: State Certification #: or State License ~: State: l~iration Date of Certiication or License: ;=i Did i_; Did Nat Inspect Property Freddie Mac Form 439 693 Page 2 of 2 Fannie Mae Farm t0o46 6-93 form ACR - "TOTAL for Windows• appraisal software by a 1a mode, inc. -1-81)g-ALAMODE 1 ~} ~~ t ~, 4~ ~~~, ~ ~ I a ~~ ~ ~ ,~` -- ~ ~ ~~ ~'~~~/ ~~~~~_ ~~~~~~~~~~ ~ ~ ~ ~ ~~~ ~ ~ ~: r~ ~~ /~~ ~~~~~~~~ ~~ GT~ ~... +~+.++ ~.... w.~+. ww..~. .,.,.+.~ .+~.. 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' W 1' ~ ~ d - f m .x~ ~ -. - ~. 1"S 6p¢1 ~ MfijT ~ ~ e i £ l~•e j y~^y7 t„l ~ r' t. ~ ~ tai t~ S 6 ~ i M1LJ ~ ~ ty ~i ~e'~ t k ti i s ~ , ~ 3 t„ 4 J ~ t t •j - ii'~!K..~ ~ i ~~ 4 n q ~ j7 1 SG ~ of-4 ~' ! i ~i t^ _ !~ tY ..r 'f '1 ~~ fn. .p! ~ s n. W V < 4~ 1:. ~s~ ~ a ~ i t S4?' ,~ '+1 1~ ~ ' 1 ~ ip:k,~, ~ i:. ` 1 x, ~` ~ ~ ,~tl" ~~ ~:. ~ ~ *; : V ryh s.. ~ ' ~k:w ~I~r ~ H Svt +r'~F q a II•.rd••YY•.~ ty :~ ~ ~ f: a _ ~+ it ~ ~~ytf~ its *~ F~ 'Y1 o . fl `° 15 SALES COMPARISON ADDENDUM concerning the comparables sales used in this report: PROXIMITY OF COMPARABLES TO SUB7ECT: A very thorough search for closed, similaz comparable sales in the subject's market azea was conducted. Sales selected that were more than one mile from the subject were deemed applicable and were considered better indicators of value than those located more closely to the subject which differed significantly in terms of size, condition, utility, site value, etc. SALES CLOSED OVER SIX MONTHS: Comparable sales selected which were over six months old were, in my opinion, a better indicator of value than more recent closed sales which differed significantly from the subject iri terms of size, age, location, site value, utility, etc. Time adjustments were considered unnecessary, as the subject market has changed very little over the past 6-12 months. If an adjustment for closed sales older than one year was made, mazket data clearly indicated that appreciation or depreciation had occured to warrant the time adjustment. CONCERNING SALES COMPARISON ADNSTMENTS: The net, gross, and individual adjustments were amved at from cost data, which I used to deduct appropriate estimated depreciation, estimates based on my txaining, experience, and knowledge of the mazket, and by periodic market studies performed by me, or made available to me. 16 ORANGE COUNTY-DEMOGRAPHICS/INFORMATION Orange County, NC is located in north central North Carolina, and is bisected by two interstate highways, I-40 and I-85. The county seat is Hillsborough, located in central Orange County, and the other two incorporated cities are Chapel HiII and Carrboro, located in southern Orange County. Except for these cities, most of Orange County consists of suburban communities with no distinguishing boundaries. Postal addresses of Orange County properties include Mebane, Efland, Burlington, Cedar Grove, Prospect Hili, Hurdle Mills, Rougemont, Hillsborough, Durham, Chapel Hili, and Carrboro. Often times, properties located within a mile of each other will have different mailing addresses, yet be similar in all other market data features. Typically, buyers in this particular real estate market put no limitations on their property search based on mailing addresses, phone systems, school districts, or proximity to highways and urban areas. The market has been in a healthy balance for over a decade, and most properties continue a modest, but steady appreciation, as building costs and land development costs continue to increase. Comparable sales, especially on larger acreage tracts, oftentimes have a closed date of over a year ,and are located 5-10 miles or more from the subject property, yet may very well be the best available closed comparable sale available to me. Square footages of homes and acreage sizes of land tracts are often unimportant factors in the Market Data Analysis. Typically, nice, well maintained 1,200 square foot homes sell for more money than average, neglected 1,400 square foot homes, all other factord being equal. Conversely, beautiful, scenic, one acre land parcels might sell for more money than larger 2-3 acre parcels that are inferior in any number of factors, including location, deed restrictions, soil quality, or topography. In conclusion, my seventeen+ years in the Orange County real estate market as a real estate agent, appraiser, developer, and consultant, have given me good insight and intuition into what knowledgeable ready, willing, and able buyers want. I use this experience to reconcile values for the properties appraised. I drive by every property that I appraise after the initial reconciliation process is completed, but before the appraisal is printed out, and ask the only question that really matters, "Would a typically motivated buyer pay that amount for this property?" If the answer is yes,. the appraisal is completed, if not, then further reconciliation is done. Attachment 3 - 1 7 Offer to Purchase and Contract OFFER TO PURCHASE AND CONTRACT -VACANT LOT/LAND [Consult "Guidelines" (form 12G) for guidance in completing this form] NOTE: This contract is intended for unimproved real property that Buyer will purchase only for personal use and does not have immediate plans to subdivide. It should not be used to sell property that is being subdivided unless the property has been platted, properly approved and recorded with the register of deeds as of the date of the contract. If Seller is Buyer's builder and the sale involves the construction of a new single family dwelling prior to closing, use the standard Offer to Purchase and Contract (Form 2-T) with the New Construction Addendum (Form 2A3-T). ORANGE COUNTY, NORTH , as Buyer, hereby offers to purchase and JOSEPH T. FORREST as Seller, upon acceptance of said offer, agrees to sell and convey, all of that plot, piece or pazcel of land described below (hereafter referred to as the "Property"), upon the terms and conditions set forth herein. This offer shall become a binding contract on the date that: (i) the last one of the Buyer and Seller has signed or initialed this offer or the fmal counteroffer, if any, and (ii) such signing or initialing is communicated to the party making the offer or counteroffer, as the case may be. Such date shall be referred to herein as the "Effective Date." 1. REAL PROPERTY: Located in EFLAND, ORANGE County, State of North Carolina, being known as and more particularly described as: Address: Street City: Zip NOTE: Governmental authority over taxes, zoning, school districts, utilities and mail delivery may differ from address shown. Legal Description: 1 .369 acre parcel shown as Lot 1 and 0.121 acre sanitary sewer easement Subdivision Name: shown as Lot 2 Sanitary Sewer Easement Area on attached Exhibit Plat Reference: Lot ,Block or Section as shown on Plat Book or Slide at Page(s) (Property acquired by Seller in Deed Book at Page ). NOTE: Prior to signing this Offer to Purchase and Contract -Vacant Lot/Land, Buyer is advised to review Restrictive Covenants, if any, which may limit the use of the Property, and to read the Declaration of Restrictive Covenants, By-Laws, Articles of Incorporation, Rules and Regulations, and other governing documents of the owners' association and/or the subdivision, if applicable. If the Property is subject to regulation by an owners' association, it is recommended that Buyer obtain a copy of a completed Owners' Association Disclosure And Addendum (standard form 2A12-T) prior to signing this Offer to Purchase and Contract, and include it as an addendum hereto. 2. PURCHASE PRICE: The purchase price is $ 2 5 , 0 0 0 and shall be paid in U.S. Dollars. Should any check or other funds paid by Buyer be dishonored, for any reason, by the institution upon which the payment is drawn, Buyer shall have one (1) banking day after written notice to deliver good funds to the payee. In the event Buyer does not timely deliver good funds, the Seller shall have the right to terminate this contract upon written notice to the Buyer. The purchase price shall be paid as follows: (a) $ N/A EARNEST MONEY DEPOSIT with this offer by ^ cash ^-personal check ^ bank check ^ certified check ^ other: to be deposited and held in escrow by ("Escrow Agent") until the sale is closed, at which time it will be credited to Buyer, or until this contract is otherwise terminated. In the event: (1) this offer is not accepted; or (2) any of the conditions hereto are not satisfied, then all earnest monies shall be refunded to Buyer. In the event of breach of this contract by Seller, all earnest monies shall be refunded to Buyer upon Buyer's request, but such return shall not affect any other remedies available to Buyer for such breach. In the event of breach of this contract by Buyer, then all earnest monies shall-be forfeited to Seller upon Seller's request, but such forfeiture shall not affect any other remedies available to Seller for such breach. NOTE: In the event of a dispute between Seller and Buyer over the return or forfeiture of earnest money held in escrow, a licensed real estate broker ("Broker") is required by state law (and Escrow Agent, if not a Broker, hereby agrees) to retain said earnest money in the Escrow Agent's trust or escrow account until Escrow Agent has obtained a written release from the parties consenting to its disposition or until disbursement is ordered by a court of competent jurisdiction. Alternatively, if a Broker is holding the Earnest Money, the Broker may deposit the disputed monies with the appropriate clerk of court in accordance with the provisions of N.C.G.S. §93A-12. Buyer initials Seller initials Page 1 of 7 NC BAR ASSOCIATION -Form No. 12 ~ 2007, 7/2008 This standard form has been approved joinfly by: North Carolina Bar Association - NC Baz Form No. 12 North Cazolina Association of Realtors®, Inc. - Standazd Form 12T 18 THE PARTIES AGREE THAT A REAL ESTATE BROKERAGE FIRM ACTING AS ESCROW AGENT MAY PLACE ANY EARNEST MONIES DEPOSITED BY BUYER IN AN INTEREST BEARING TRUST ACCOUNT AND THAT ANY INTEREST EARNED THEREON SHALL BE DISBURSED TO THE ESCROW AGENT MONTHLY IN CONSIDERATION OF THE EXPENSES INCURRED BY MAINTAINING SUCH ACCOUNT AND RECORDS ASSOCIATED THEREWITH. (b) $ N/A , (ADDITIONAL) EARNEST MONEY DEPOSIT to be paid to Escrow Agent no later than ,TIME BEING OF THE ESSENCE WITH REGARD TO SAID DATE. (c) $ N A ,OPTION FEE in accordance with paragraph 13, Alternative 2, to be paid to Seller on the Effective Date as set forth in paragraph 22. (NOTE: If Alternative 2 applies, then do not insert $0, N/A, or leave blank). (d) $ N/A , BY ASSUMPTION of the unpaid principal balance and all obligations of Seller on the existing loan(s) secured by a deed of trust on the Property in accordance with the attached Loan Assumption Addendum. (e) $ N/A , BY SELLER FINANCING in accordance with the attached Seller Financing Addendum. (~ $ N A ,BALANCE of the purchase price in cash at Closing. 3. LOAN CONDITION: N/A (a) Loan. Buyer's performance is contingent upon Buyer's ability able to obtain a ^ Conventional ^ Other: loan at a ^ Fixed Rate ^ Adjustable Rate in the principal amount of for a term of year(s), at an initial interest rate not to exceed % per annum, with mortgage loan discount points not to exceed % and with loan origination fee not to exceed % of the loan amount ("Loan"). (b) Loan Obligations: The Buyer agrees to: (i) Make written application for the Loan, authorize any required appraisal and pay any necessary fees within days after the Effective Date; (ii) Promptly furnish Seller written confirmation from the lender of having applied for the Loan. If Buyer fails to furnish Seiler written confirmation from the lender of having applied for the Loan, Seller may make written demand for compliance. If Buyer does not furnish Seller written confirmation from the lender of application within five (5) days after such demand, then Seller may terminate this contract by written notice to Buyer at any time thereafter, provided Seller has not received either written evidence of the application or a waiver of the Loan Condition, and all Earnest Money shall be forfeited to Seller as liquidated damages and as Seller's sole and exclusive remedy for Buyer's failure to close, but without limiting Seller's rights under paragraph 14 for damage to the Property. Buyer further agrees to: (iii) Pursue qualification for and approval of the Loan diligently and in good faith; (iv) Continually and promptly provide requested documentation to lender. (c) Buyer's Right to Terminate: If Buyer has complied with Buyer's Loan Obligations in subsection (b) above, then within days after the Effective Date (or any agreed-upon written extension of this deadline) TIME BEING OF THE ESSENCE, Buyer shall have the right to terminate this contract delivering to Seller written notice of termination if Buyer, in Buyer's sole discretion, is not satisfied that the Loan will be approved and funded. If Buyer has timely delivered such notice, this contract shall be terminated and all Earnest Money shall be refunded to Buyer. If Buyer fails to deliver such notice, then Buyer will be deemed to have waived this condition. Thereafter, if Buyer fails to close based upon inability to obtain the Loan, then all Earnest Money shall be forfeited to Seller. If Buyer provides Seller reasonable third-party documentation confirming Buyer's inability to obtain the Loan, then the Earnest Money shall serve as liquidated damages and as Seller's sole and exclusive remedy for Buyer's failure to close, but without limiting Seller's rights under paragraph 14 for damage to the Property. (WARNING: Buyer is advised to consult with Buyer's lender to assure that the number of days allowed for Buyer to obtain the Loan is sufficient to allow Buyer's lender time to take all reasonable steps necessary to provide reliable loan approval.) 4. FLOOD HAZARD DISCLOSURE/CONDTTION (Choose ONE of the following alternatives): ^ To the best of Seller's knowledge, the Property IS located partly or entirely within a designated Special Flood Hazard Area. Buyer understands that it may be necessary to purchase flood insurance in order to obtain any loan secured by the Property from any federally regulated institution or a loan insured or guaranteed by an agency of the U.S. Government. ® To the best of Seller's knowledge, the Property IS NOT located partly or entirely within a designated Special Flood Hazard Area. If, following the Effective. Date of this contract, it is determined that the Property is located partly or entirely within a designated Special Flood Hazard Area according to the current FEMA flood map, or if this contract is subject to a Loan Condition and Buyer's lender requires Buyer to obtain flood insurance as a condition of making the Loan, then in either event Buyer shall have the right to terminate this contract upon written notice to Seller, and all earnest monies shall be refunded to Buyer. 5. OTHER CONDITIONS: (State N/A in each blank that is not a condition to this contract.) (a) There must be no restriction, easement, zoning or other governmental regulation that would prevent the reasonable use of the Property for construction of a sewer pump station purposes. Buyer initials Seller initials Page 2 of 7 NC BAR ASSOCIATION -Form No. 12 ~ 2007, 7/2008 This standard form has been approved jointly by: North Cazolina Baz Association - NC Baz Form No. 12 North Cazolina Association of Realtors®, Inc. - Standazd Fonn 12T 19 (b) The Property must be in substantially the same or better condition at Closing as on the date of this offer, reasonable wear and tear excepted. (c) The Property must appraise at a value equal to or exceeding the purchase price or, at the option of Buyer, this contract may be terminated and all earnest monies shall be refunded to Buyer, even if the Loan Condition has been waived asprovided- in paragraph 3. N/A If this contract is NOT subject to a fmancing contingency requiring an appraisal, Buyer shall arrange to have the appraisal completed on or before N/A (d) All deeds of trust, liens and other chazges against the Property, not assumed by Buyer, must be paid and satisfied by Seller prior to or at Closing such that cancellation may be promptly obtained following Closing. Seller shall remain obligated to obtain any such cancellations following Closing. (e) Title must be delivered at Closing by GENERAL WARRANTY DEED unless otherwise stated herein, and must be fee simple mazketable and insurable title, free of all encumbrances except: ad valorem taxes for the current year (prorated through the date of Closing); utility easements and unviolated restrictive covenants that do not materially affect the value of the Property; and such other encumbrances as may be assumed or specifically approved by Buyer. The Property must have legal access to a public right of way. 6. SPECIAL ASSESSMENTS: NOTE: For purposes of this agreement, a "confirmed" special assessment is defined as an assessment that has been approved by a governmental agency or an owners' association for the purpose(s) stated, whether or not it is fully payable at time of closing. A "pending" special assessment is defined as an assessment that is under formal consideration by a governing body. Seller warrants that there aze no pending or confirmed governmental special assessments for sidewalk, paving, water, sewer, or other improvements on or adjoining the Property, and no pending or confirmed owners' association special assessments, except as follows (Insert "None" or the identification of such assessments, if any): none Unless otherwise agreed, Seller shall pay all owners' association assessments and all governmental assessments confirmed through the time of Closing, if any, and Buyer shall take title subject to all pending assessments disclosed by Seller herein, if any. 7. PROBATIONS AND ADJUSTMENTS: Unless otherwise provided, the following items shall be prorated and either adjusted between the parties or paid at Closing: (a) Ad valorem taxes on real property shall be prorated on a calendar year basis through the date of Closing; (b) All late listing penalties, if any, shall be paid by Seller; (c) Rents, if any, for the Property shall be prorated through the date of Closing; (d) Owners' association dues and other like charges shall be prorated through the date of Closing. Seller represents that the regular owners' association dues, if any, are $ per .Unless otherwise agreed, Buyer shall pay any fees required for obtaining account payment information on owners' association dues or assessments for payment or proration and any charge made by the owners' association in connection with the disposition of the Property to Buyer, including. any transfer and/or document fee imposed by the owners' association. N/A 8. EXPENSES: Unless otherwise agreed, Buyer shall be responsible for all costs with respect to any loan obtained by Buyer, appraisal, title search, title insurance, recording the deed and for preparation and recording of all instruments required to secure the balance of the purchase price unpaid at Closing. Seller shall pay for prepazation of a deed and all other documents necessary to perform Seller's obligations under this agreement, and for excise tax (revenue stamps) required by law. Seller shall pay at Closing $ N/A toward any of Buyer's expenses associated with the purchase of the Property, including any FHA/VA lender and inspection costs that Buyer is not permitted to pay, but excluding any portion disapproved by Buyer's lender. 9. EVIDENCE OF TITLE: Seller agrees to use his best efforts to deliver to Buyer as soon as reasonably possible after the Effective Date of this contract, copies of all title information in possession of or available to Seller, including but not limited to: title insurance policies, attorney's opinions on title, surveys, covenants, deeds, notes and deeds of trust and easements relating to the Property. Seller authorizes (1) any attorney presently or previously representing Seller to release and disclose any title insurance policy in such attorney's file to Buyer and both Buyer's and Seller's agents and attorneys; and (2) the Property's title insurer or its agent to release and disclose all materials in the Property's title insurer's (or title insurer's agent's) file to Buyer and both Buyer's and Seller's agents and attorneys. 10. LABOR AND MATERIAL: Seller shall furnish at Closing an affidavit and indemnification agreement in form satisfactory to Buyer showing that all labor and materials, if any, furnished to the Property within 120 days prior to the date of Closing have been paid for and agreeing to indemnify Buyer against all loss from any cause or claim arising therefrom. Buyer initials Seller initials Page 3 of 7 NC BAR ASSOCIATION -Form No. 12 ©2007, 7/2008 This standazd form has been approved jointly by: North Cazolina Baz Association - NC Baz Form No. 12 North Carolina Association of Realtors®, Inc. -Standard Form 12T 20 11. CLOSING: Closing shall be defined as the date and time of recording of the deed and shall be on or before June 2 7 , 2 011 (the "Closing Date"). All parties agree to execute any and all documents and papers necessary in connection with Closing and transfer of title on or before the Closing Date at a place and time designated by Buyer. The deed is to be made to ORANGE COUNTY, NORTH CAROLINA Absent agreement to the contrary in this contract or any subsequent modification thereto, the following terms shall apply: If either party is unable to close by the Closing Date, then provided that the party is acting in good faith and with reasonable diligence to proceed to closing, such party shall be entitled to reasonable delay of the Closing Date and shall give as much notice as possible to the non-delaying party and closing agent. In such event, however, either party for whom the Closing Date is delayed shall have a maximum of ten (10) days from the Closing Date, or any extension of the Closing Date agreed-upon in writing, in which to close without payment of interest. Following expiration of the ten-day period, the party not ready to close shall be responsible for paying to the other party (if ready, willing and able to close) interest on the purchase price at the rate of eight percent (8%) per annum accruing from the end of the ten-day period until closing occurs or the contract is terminated. Should the delay in closing continue for more than thirty (30) days from the Closing Date or the last agreed-upon extension of the Closing Date, then the non-delaying party shall have the unilateral right to terminate the contract and receive the earnest money, but the right to such receipt shall not affect any other remedies available to the non-delaying party for such breach. CLOSING SHALL CONSTITUTE ACCEPTANCE OF THE PROPERTY IN ITS THEN EXISTING CONDITION UNLESS PROVISION IS OTHERWISE MADE IN WRITING 12. POSSESSION: Unless otherwise provided herein, possession shall be delivered at Closing. No alterations, excavations, tree removal or other such activities may be done before possession is delivered. Seller shall remove, by the date possession is made available to the Buyer, all personal property which is not a part of the purchase and all garbage and debris from the Property. 13. PROPERTY INSPECTION/INVESTIGATION (Choose ONLY ONE of the following Alternatives): ^ ALTERNATIVE 1• (a) Soil, Utilities And Environmental Contingency: This contract is contingent upon Buyer obtaining report(s) that (i) the soil is suitable for Buyer's Intended Use, (ii) utilities are available to the Property, (iii) there is no environmental contamination, law, rule or regulation that prohibits, restricts or limits Buyer's Intended Use, and (iv) there is no flood hazard that prohibits, restricts or limits Buyer's Intended Use (collectively the "Reports"). All costs and expenses of obtaining the Reports shall be borne by Buyer. Buyer shall use Buyer's best efforts to obtain such Reports. If the Reports cannot be obtained, Buyer may terminate this contract and the Earnest Money Deposit shall be refunded to Buyer. Buyer waives this condition unless Buyer provides written notice to Seller by June 2 4 , 2 011 that this condition cannot be satisfied, TIME BEING OF THE ESSENCE. (b) Septic/Sewer System (check only ONE): N/A ^ Buyer has investigated the costs and expenses to install the sewer system approved by the Improvement Permit attached hereto as Exhibit A and hereby approves and accepts said Improvement Permit. ^ Seller represents that the system has been installed, which representation survives Closing, but makes no further representations as to the system. Buyer acknowledges receipt of the Improvement Permit attached hereto as Exhibit A. Buyer shall have the option of inspecting or obtaining, at Buyer's expense, inspection(s) to determine the condition of the system. If the system is not performing the function for which intended and is in need of immediate repair, Buyer may terminate this Contract and the Earnest Money Deposit shall be refunded to Buyer. Buyer waives this condition unless Buyer provides written notice to Seller by that this condition cannot be satisfied, TIME BEING OF THE ESSENCE. ^ This Contract is contingent upon ^ Buyer ^ Seller ("Responsible Party") obtaining an Improvement Permit or written evaluation from the County Health Department ("County") fora (check only ONE) ^ conventional or ^ other ground absorption sewage system fora bedroom home. All costs and expenses of obtaining such Permit or written evaluation shall be borne by Responsible Party unless otherwise agreed. In any event Seller, by no later than , s~rall be responsible for clearing that portion of the Property required by the County to perform its tests and/or inspections. Responsible Party shall use best efforts to obtain such Permit or written evaluation. If the Improvement Permit or written evaluation from the -County cannot be obtained by (date), either party may terminate this Contract and the Earnest Money Deposit shall be refunded to Buyer._ ^ Buyer has investigated and approved the availability, costs and expenses to connect to a ^ public or ^ community sewer system. (c) Water (check only ONE): /A ^ Buyer has investigated and approved the availability, costs and expenses to connect to a ^ public or ^ community water system or ^ shared private well. ^ Buyer has investigated the costs and expenses to install the private drinking water well approved by the Construction Permit attached hereto as Exhibit A and hereby approves and accepts said Construction Permit. ^ Seller represents that a private drinking water well has been installed, which representation survives Closing, but makes no further representations as to the well. With respect to wells installed after July 1, 2008, Buyer acknowledges receipt of the County Health Buyer initials Seller initials Page 4 of 7 NC BAR ASSOCIATION -Form No. 12 ©2007, 7/2008 This standazd form has been approved jointly by: North Carolina Baz Association - NC Bar Form No. 12 North Cazolina Association of Realtors®, Inc. -Standard Form 12T 21 Department's Certificate of Completion attached hereto as Exhibit A. Buyer shall have the option of inspecting or obtaining, at Buyer's expense, inspection(s) to determine the condition of the well. If the well is not performing the function for which intended and is in need of immediate repair, Buyer may terminate this Contract and the Earnest Money Deposit shall be refunded to Buyer. Buyer waives this condition unless Buyer provides written notice to Seller by that this condition cannot be satisfied, TIME BEING OF THE ESSENCE. ^ This Contract is contingent upon ^ Buyer ^ Seller ("Responsible Party") obtaining a Construction Permit from the County Health Department ("County") for a private drinking water well. All costs and expenses of obtaining such Permit, including but not limited to any required survey, shall be borne by Responsible Party unless otherwise agreed. In any event Seller, by no later than shall be responsible for clearing that portion of the Property required by the County to conduct a field investigation to evaluate the site. Responsible Party shall use best efforts to obtain such Permit. If the Construction Permit from the County cannot be obtained by (date), either party may terminate this Contract and the Earnest Money Deposit shall be refunded to Buyer. (d) CLOSING SHALL CONSTITUTE ACCEPTANCE OF THE PROPERTY IN ITS THEN EXISTING CONDITION UNLESS PROVISION IS OTHERWISE MADE IN WRITING. ^ ALTERNATIVE 2: (This Alternative applies ONLY if Alternative 2 is checked AND Buyer has paid the Option Fee.) (a) Property Investigation with Option to Terminate: In consideration of the sum set forth in paragraph 2(c) paid by Buyer to Seller (not Escrow Agent) and other valuable consideration, the sufficiency of which is hereby acknowledged (the "Option Fee"), Buyer shall have the right to terminate this contract for any reason or no reason, whether related to the physical condition of the Property or otherwise, by delivering to Seller written notice of termination (the "Termination Notice") by 5:00 p.m. on 20 ,TIME BEING OF THE ESSENCE (the "Option Termination Date"). At any time prior to Closing, Buyer shall have the right to inspect the Property at Buyer's expense (Buyer is advised to have all inspections of the Property, including but not limited to those matters set forth in Alternative 1; performed prior to the Option Termination Date). (b) Ezercise of Option: If Buyer delivers the Termination Notice prior to the Option Termination Date, TIME BEING OF THE ESSENCE, this contract shall become null and void and all earnest monies received in connection herewith shall be refunded to Buyer; however, the Option Fee will not be refunded and shall be retained by Seller. If Buyer fails to deliver the Termination Notice to Seller prior to the Option Termination Date, then Buyer will be deemed to have accepted the Property in its physical condition existing as of the Option Termination Date; provided such acceptance shall not constitute a waiver of any rights Buyer has under paragraphs 3, 4 or 5 above. The Option Fee is not refundable, is not a part of any earnest monies, and will be credited to the purchase price at Closing. (c) CLOSING SHALL CONSTITUTE ACCEPTANCE OF THE PROPERTY IN ITS THEN EXISTING CONDITION UNLESS PROVISION IS OTHERWISE MADE IN WRITING. 14. RIGHT OF ENTRY, RESTORATION AND INDEMNITY: Buyer and Buyer's agents and contractors shall have the right to enter upon the Property for the purpose of appraising and evaluating the Property, and performing the tests and inspections permitted in this contract. Buyer shall, at Buyer's expense, promptly repair any damage to the Property resulting from any activities of Buyer and Buyer's agents and contractors. Buyer will indemnify and hold Seller harmless from all loss, damage, claims, suits or costs, which shall arise out of any contract, agreement, or injury to any person or property as a result of any activities of Buyer and Buyer's agents and contractors relating to the Property. This indemnity shall survive this contract and any termination hereof, but Buyer shall not be responsible for any loss, damage, claim, suit or cost arising out of pre-existing conditions of the Property and/or out of Seller's negligence or willful acts or omissions. 15. OTHER PROVISIONS AND CONDITIONS: CHECK ALL STANDARD ADDENDA THAT MAY BE APART OF THIS CONTRACT, IF ANY, AND ATTACH HERETO. ITEMIZE ALL OTHER ADDENDA TO THIS CONTRACT, IF ANY, AND ATTACH HERETO. (NOTE: UNDER NORTH CAROLINA LAW, REAL ESTATE AGENTS ARE NOT PERMITTED TO DRAFT CONDITIONS OR CONTINGENCIES TO THIS CONTRACT.) ^ Additional Provisions Addendum (Form ZAl l-T) ^ Loan Assumption Addendum (Form 2A6-T) ^ Back-Up Contract Addendum (Form 2A1-T) ^ Owners' Association Disclosure And Addendum (Form 2A12-T) ^ Contingent Sale Addendum (Form 2A2-T) ^ Seller Financing Addendum (Form 2A5-T) ^ FHAlVA Financing Addendum (Form 2A4-T) (~ OTHER: Exhibit A - Map of Property Additional conditions: (1) Seller shall record the subdivsion plat for the property identified as - - on or e ore une (2) Seller shall pay the ad valorem taxes on real property for the calendar year 2011. Buyer initials Seller initials Page S of 7 NC BAR ASSOCIATION -Form No. 12 ©2007, 7/2008 This standazd form has been approved jointly by: North Cazolina Baz Association - NC Bar Fonn No. 12 North Carolina Association of Realtors®, Inc. -Standard Form 12T 22 16. RISK OF LOSS: The risk of loss or damage by fire or other casualty prior to Closing shall be upon Seller. 17. ASSIGNMENTS: This contract may not be assigned without the written consent of all parties, but if assigned by agreement, then this contract shall be binding on the assignee and his heirs and successors. 18. TAX-DEFERRED EXCIIANGE: In the event Buyer or Seller desires to effect atax-deferred exchange. in connection with the conveyance of the Property, Buyer and Seller agree to cooperate in effecting such exchange; provided, however, that the exchanging party shall be responsible for all additional costs associated with such exchange, and provided further, that anon-exchanging party shall not assume any additional liability with respect to such tax-deferred exchange. Seller and Buyer shall execute such additional documents, at no cost to the non-exchanging party, as shall be required to give effect to this provision. (NOTE: If Alternative 2 under paragraph 13 of this contract will apply, Seller should seek advice concerning the taxation of the Option Fee.) 19. PARTIES: This contract shall be binding upon and shall inure to the benefit of the parties, i.e., Buyer and Seller and their heirs, successors and assigns. As used herein, words in the singular include the plural and the masculine includes the feminine and neuter genders, as appropriate. 20. SURVIVAL: If any provision herein contained which by its nature and effect is required to be observed, kept or performed after the Closing, it shall survive the Closing and remain binding upon and for the benefit of the parties hereto until fully observed, kept or performed. 21. ENTIRE AGREEMENT: This contract contains the entire agreement of the parties and there are no representations, inducements or other provisions other than those expressed herein. All changes, additions or deletions hereto must be in writing and signed by all parties. Nothing contained herein shall alter any agreement between a REALTOR® or broker and Seller or Buyer as contained in any listing agreement, buyer agency agreement; or any other agency agreement between them. 22. NOTICE AND EXECUTION: Any notice or communication to be given to a party herein may be given to the party or to such party's agent. Any written notice or communication in connection with the transaction contemplated by this contract may be given to a party or a party's agent by sending or transmitting it to any mailing address, a-mail address or fax number set forth in the "Notice Address" section below. Seller and Buyer agree that the "Notice Information" and "Escrow Acknowledgment" sections below shall not constitute a material part of this Offer to Purchase and Contract, and that the addition or modification of any information therein shall not constitute a rejection of an offer or the creation of a counteroffer. This contract may be signed in multiple originals, all of which together constitute one and the same instrument, and the parties adopt the word "SEAL" beside their signatures below. Buyer L~ has ^ has not-made an on-site personal examination of the Property prior to the making of this offer. THE NORTH CAROLINA ASSOCIATION OF REALTORS®, INC. AND THE NORTH CAROLINA BAR ASSOCIATION MAKE NO REPRESENTATION AS TO THE LEGAL VALIDITY OR ADEQUACY OF ANY PROVISION OF THIS FORM IN ANY SPECIFIC TRANSACTION. IF YOU DO NOT UNDERSTAND THIS FORM OR FEEL THAT IT DOES NOT PROVIDE FOR YOUR LEGAL NEEDS, YOU SHOULD CONSULT A NORTH CAROLINA REAL ESTATE ATTORNEY BEFORE YOU SIGN IT. Date: Buyer ORANGE COUNTY, NORTH CAROLINA Date Buyer (SEAL) Date: Seller JOSEPH T. FORREST Date: Seller (SEAL) Page 6 of 7 NC BAR ASSOCIATION -Form No. 12 ©2007, 7/2008 This standard form has been approved jointly by: North Carolina Bar Association - NC Bar Form No. 12 North Carolina Association of Realtors®, lnc. -Standard Form 12T 23 NOTICE INFORMATION NOTE: INSERT THE ADDRESS AND/OR ELECTRONIC DELIVERY ADDRESS EACH PARTY AND AGENT APPROVES FOR TIC RECEIPT OF ANY NOTICE CONTEMPLATED BY THIS CONTRACT. INSERT "N/A" FOR ANY W~IICH ARE NOT APPROVED. BUYER NOTICE ADDRESS: Mailing Address: ORANGE COUNTY P.O. BOX 8181, HILLSBOROUGH, NC 27278 Buyer Fax#: (919) 644-3360 Buyer E-mail Address: SELLING AGENT NOTICE ADDRESS: Individual Selling Agent: License #: Firm Name: Finn Name: Acting as !~ Buyer's Agent ^ Seller's (sub)Agent ^ Dual Agent Acting as ^ Seller's (sub)Agent ^ Dual Agent Mailing Address: Selling Agent Fax#: Selling Agent E-mail Address: Selling Agent Phone#: Seller E-mail Address: LISTING AGENT NOTICE ADDRESS: Individual Listing Agent: License #: Mailing Address: Listing Agent fax#: Listing Agent E-mail Address: Listing Agent Phone#: ESCROW ACKNOWLEDGMENT Escrow Agent acknowledges receipt of the earnest money and agrees to hold and disburse the same in accordance with the terms hereof. 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