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Home My WebLink About2011-041 DEAPR - Ferrell Firm PC for Sykes Farm Conservation Easement~# ~l l ~~~..P ~ Ferrell Firm, P.C. P. O. Box 16564 Chapel Hill, North Carolina 27516 Telephone (919) 883-4960 Fax (866) 941-6233 BRIAN M. FERRELL E-MAIL: brian@ferrellfirm.com February 7, 2011 John Roberts, Esquire Orange County Attorney P.O. Box 8181 Hillsborough, North Carolina 27278 Mr. Rich Shaw Orange County, North Carolina ERCD P.O. Box 8181 Hillsborough, North Carolina 27278 RE: Engagement For Legal Services: Orange County's Purchase o£Sykes ~ar`ri~`,Conservation Easement: PIN 9831-56-4044, 9831-37-7890, 9831-68-1220 Dear John & Rich: Rich, thank you for contacting me recently regarding Orange County's need for legal assistance in the closing of the above referenced conservation easement. I am pleased to assist the County with this easement transaction. If agreeable to the County, this letter establishes the terms of our engagement. I propose to perform the following legal services on behatf of the County upon the following terms and conditions. Title Search & Title Insurance I will conduct a title search on the relevant property (the "Easement Property"). The County has a choice as to the type of title examination available in this matter. The County has the option of either engaging me to perfonn a"title update" on the subject property or a"full search" coinprising an examination of the public records for no less than 30 years. The differences between these two options in terms of content and cost are described below. A title update search begins with the date and time of issuance of the current owner's title insurance policy. This means that I will not search the public records pertaining to the subject properiy prior to the issuance of the existing title insurance policy. I, therefore, do not certify the status of the title prior to this date, so I will not be able to detect any title defects, clouds on title, encumbrances and the like which may later give rise to a claim against the title prior to the date of the current insurance policy. Nonetheless, the title insurance company should cover you against all claims that are not excepted from the policy even if such claims arise out of defects or encumbrances, which occurred prior to the search period. The advantage of a 30-60 year search over the updated search is that it gives you more certainty about the status of your title. Even if the title company agrees to provide you with full coverage and pays for your attorney's fees and damages, you must still endure litigation and uncertainty about the Easement Property ownership rights. A full search, in short, gives additional assurances as to the status of title. A title update takes significantly lets time to complete than a full search. I estimate a full title search will increase the closing costs anywhere from $1,00-$1,500. Regardless of the type of title search selected, I will engage a title abstractor to collect the necessary title documents from the office of the Orange County Register of Deeds. I understand the County desires to engage me to perforxn a title update search for this transaction assuming a suitable prior title insurance policy can be located. Please let me know immediately if this is not the case. The County will be responsible for the payment of the title insurance premium estimated by Investors Title Insurance Company. The premium amount will be determined by the title company based on the coverage amount requested by the County. Please also be aware that matters of zoning and environmental hazards are not included in a standard titie search; hence, if you require additional information from me concerning these issues, please so advise immediately. Zoning laws affect setback and use requirements to name a few. Environmental hazards include, but are not limited to, the existence of radon gas, lead-based paint, underground storage tanks and asbestos. Rich Shaw also informs me the County has engaged a surveyor to prepare a cunent survey of the Easement Property. Closin~ I will prepare a legal description of the Easement Property based on the newly drawn survey to be included as "Exhibit A" to the Warranty Deed of Conservation Easement (the "Easement Deed"). The Easement Deed was drafted, negotiated and executed prior to my involvement in this matter. Therefore, I will not have any responsibility for preparation of the Easement Deed except for the preparation of Exhibit A. I will prepare a closing statement to be executed by the parties. I am willing to conduct the closing in my office located at 209 N. Columbia Street in Chapel Hill, or at another office in Orange County at your convenience. The County agrees to wire all closing funds and attorney's fees into my trust account prior to the closing. I will make every effort to provide the County with a draft of the settlement statement no less than 24 hours prior to the closing date. Following the closing, I will update title and record the deed of easement at the office of the Register of Deeds and prepare a final title opinion. My fee for all work done pursuant to this agreement is as follows: (1) $75.00 dollars per hour for the services of the title abstractor to collect the necessary documents from the office of the Register of Deeds; and (2) $200.00 per hour for the time it takes to review the title abstract documents and prepare the preliminary and final title opinion, draft the legal description and closing statement, conduct the closing and record the Deed of Easement. There will be an additional flat fee charge of $50.00 that will cover all out of pocket expenses for items such as copy fees, courier fees, mileage costs and mailing costs. The County will pay all fees due under this Agreement at the closing. Please note that costs of the survey, environmental reports, insurance premiums, tax stamps, recording fees, etc., are NOT included in the legal fee quoted above. In the event the County requires representation prior to closing or additional legal work not referenced in this letter becomes necessary (such as work associated with clearing any title defects), then I will perform such work at your request at my normal hourly rate of $200 per hour. The total costs for all work performed under this A~reement shall not exceed $4,000.00. I estimate the preliminary title opinion will be completed within two weeks following my receipt of an executed copy of this letter. We will schedule a closing once a suitable date is agreed upon in March. I will begin work on this transaction as soon as I received an executed copy of this letter agreement from the County. Please understand that I must charge for all work performed even if this transaction fails for any reason. Please do not hesita.te to contact me with any questions or concerns regazding this letter. I look forward to working with you both on this transaction on behalf of the County. Sincerely, 2/7/2oli . _ ~ ~:.• r„i,, X &ian M. FerreU FOR THE FIRM ****************************************************************************** The legal services engagement described herein is understood and agreed to: Orange North 1' By: Frank Clifton, Coun Manager Date: z -" Z ~ This instrument has been pre-audited in the manner required by the Loca1 Government Budget and Fiscal Control Act. ~~~ ~. ~ Orange County Finance Director