HomeMy WebLinkAbout2012-185 Finance - Ferrell Firm PC Deck Closing $10,000Ferrell 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 @ferrelltirm.com
June 11, 2012
John Roberts, Esquire
Orange County Attorney
P.O. Box 8181
Hillsborough, North Carolina 27278
VIA Electronic Delivery
RE: Engagement for Legal Services: Orange County Property Purchase and Exchange with
Eno River Parking Deck, LLC Pursuant to Mediated Settlement Agreement
Dear John:
Thank you for contacting me regarding Orange County's need for legal assistance in the closing
of the above referenced transaction. I am pleased to assist the County with this matter. If agreeable to the
County, this letter establishes the terms of our engagement. I propose to perform the following legal
services on behalf of the County.
Title Search & Title Insurance
We will conduct a title update search on the parcel of land currently owned by Eno River Parking
Deck, LLC (the "Company ") having Orange County PIN 9874 -05 -2667 (the "Eno Deck Property"). The
effective date of the last title insurance policy issued to the Company is April 22, 2008, and our title
opinion will relate back only to that prior policy's effective date. However, due to the significant number
of recorded instruments that relate to the Eno Deck Property, we will extend our title search back to
March 18, 1985 to provide further information regarding the status of title. I will prepare a title opinion
regarding the Eno Deck Property and procure a title insurance commitment from Investors Title Insurance
Company in the amount of $1,450,000.00 based on the same. The title commitment will secure owner's
coverage in the amount stated above. I understand this will be a "cash" transaction and there is no lender
associated with the purchase. Please advise as soon as possible if there is a lender involved.
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.
Please also be aware that matters of zoning and environmental hazards are not included in
a standard title 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.
We have requested a letter from the Town of Hillsborough related to the current Zoning Compliance
Permit issued for the Eno Deck Property. We will not obtain any further information related to zoning
compliance other than the letter from the Town unless you make a written request we do so.
Environmental hazards include, but are not limited to, the existence of radon gas, lead -based
paint, underground storage tanks and asbestos. I understand the County will conduct any and all
environmental reports it deems necessary prior to closing. We will not undertake any work related to the
environmental conditions of the Eno Deck Property unless you request in writing that we do so, I also
understand the County will rely,on existing recorded surveys of tile Property and will not commission
new survey work. A new survey would show any recent encumbrances that are generally not
discoverable through a title search and we recominend new surveys be commissioned for commercial
transactions such as th is one.
Closin
| will review the deed for the Eno Deck Property prepared by the Company's attorney and lwill
prepare the deeds from the County as Seller to the Company as Buyer for properties having
County PONe9874-06-6435 and 8874'O6'5497 (the "N.Chudon Street P,u ° l will also work with
the Company's attorney to address any title or other issues that may arise related to the N. Churton Street
Properties. l will prepare a closing statement, in accordance with the Mediated Settlement Agreement
between the County and tile Company, tubc executed 6v the parties mt the closing. Ferrell Firm, 9.[has
not participated in tile negotiations leading up to the Agreement, nor have we participated in the drafting
mf the Agreement.
Tile County agrees tm wire all closing funds and attorney's fees into my trust account prior tothe
p|uoin8. \ will make every effort to provide the parties with a draft of the closing statement no less than
24 hours prior to the closing date. Following the closing, | will update title and record the deeds otdle
office of the Register of Deeds and prepare a final title opinion for the Eno Deck Property.
Ferrell Firm, P.C. will charge you for work performed oil this matter at our normal hourly rates.
The hourly rate for the title abstractor is $75.00 per hour. The rate for work performed by Brian Ferrell is
$200`00 per hour and the rate for work performed b* Claire Sau|uis$|65.U8 per hour. Our fees for the
work outlined herein will not exceed ${n,000.DU`
P|cuae note that the County will be responsible for any costs of survey, environmental reports,
insurance premiums, tax stamps, recording fees, etc. In the event the County requires representation prior
to doming, or if additional |cgal work not referenced in this letter becomes necessary, then we will
perform such work uz your request ut our normal hourly rates.
Please understand that Ferrell Pinn must charge for all work performed even if this transaction
Eui|y for any reason.
p/eauu do not hesitate to contact me with any questions or 00000,na regarding this |ettor. If
acceptable, please have this letter nf agreement executed and return signed
forward tovorkn�With Ynubc«hon/hiatrunsumtinnonbohu|fofdhu(oun�. ton9of�cc. l |wmk
8
MI
The legal services engagement described herein is understood and agreed to:
Orange County orth Carolina
By:
Frank ifton, County Manager
Date: "7 � Z _ 4 2/
This instrument has been pre- audited in the manner required by the Local Government Budget and Fiscal
Control Act.
N, 0,z, f,- 0.
Orange County Finance Director