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Home My WebLink About2018-063-E County Atty - Kennon Craver Morris Grove legal servicesDocuSign Envelope ID: CB53B3F9- 97AB- 472A- A85A- 50053B9BEAB7 KENNO14 , pile ATTORNEYS AT LAW February 20, 2018 John Roberts, Esquire Change County Attorney P.C. Box 8181 Hillsborough, North Carolina 27278 VIA EMAIL DELIVERY RE: Engagement For Legal Services: Purchase of Morris Grove Heights Subdivision Properties Dear Mr. Roberts We are pleased to represent Orange County in the acquisition of the above referenced properties (the ;-Transaction"), if agreeable to the County, this letter establishes the terms of our engagement. Title Search & Title Insurance The property to be purchased is the Transaction is comprised of thirteen parcels idcntified as having Orange County PINS 9860 -86 -9817, 9860 -86- 9731, 9860 -86 -9622, 9860 -86 -5327, 9860 -86- 3374, 9860 -86 -4404, 9860 -86 -3200, 9860 -86- 2171, 9860 -86- 2032, 9860 -85 -2900, 9860 -85 -1759, 9860 -85- 4801, and 9860 -85 -7801 (collectively the "Property"). In preparation for closing, we will perform a title search on the Property. The nature of that search may take on many one of two forms, depending upon whether or riot the title has previously been insured. If the title has not been previously insured, a search of the public records for a period of time satisfactory to the title insurance company will be required. If the title has previously been insured, we can obtain coverage for the County by having the title examined from the effective date of that coverage to the present. The process of performing only a limited title search is what is known as "tacking ". If we tack to an existing title insurance policy, the County will be relying on its policy of title insurance and not Our having actually examined the public records for any matter affecting title prior to the date of the existing policy of title insurance to which we tacked. Therefore, absent your timely objection, we will determine if title insurance coverage exists on the Property and, if so, have the public records examined Only from the date of that coverage to the present In other words absent your timely objection, we will -tack" to that existing policy of title insurance. This procedure will enable us to keep the County's costs to a minimum while, at the same time, providing full title insurance coverage for the County. You should be advised that title insurance, while a valuable insurance coverage, does not cover any and all damage that may arise fi•om a title defect. Title insurance 4011 rtnivCrsih tlrii+c. witc,100, durham, 7u-27707 . posx o0 cc h= 515'1, dudw", nc 2 ?717 -15'{9 TELEPHOPIE9194900500 FAX9194.900873 u =u w.ktnnuncraaer,co r Revised 10/17 DocuSign Envelope ID: CB53B3F9- 97AB- 472A- A85A- 50053B9BEAB7 also dues not necessarily provide immediate relief in the form of the payment of a claim given title insurers have a reasonable time to correct defects in title which the insurer reasonably believes can be corrected. What constitutes a "reasonable time" depends upon the nature of the defect. Assuming title is insurable, we will obtain a title insurance policy in favor of the County in the amount of the purchase price for the Property. The County will be responsible for the payment of the title insurance premium at closing. Please be aware that matters of zoning and environmental matters are not included in a standard title search. We, as closing attorneys, do not provide any opinion as to the environmental condition of the Property. Please notify me immediately if the County requires additional information or assistance concerning these two issues. Zoning laws affect setbacks and use requircments 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. We will either use the survey commissioned by the County for this transaction, if any, or the description of the Property included in the current vesting deeds as the legal description for the Properly. We recommend the County obtain a new survey of the Property during its due diligence if it has not already done so. A survey may show title encumbrances and defects such as existing encroachments onto or from neighboring properties, legal description gaps and overlaps, and other matters "on the ground " that would not otherwise be discovered during our title search of the public records. The legal description will be used to describe the boundaries of the Property in the deed conveying the Property to the County (the "Deed"). I understand the County does not require our assistance with negotiating or drafting any portion of (lie purchase agreement for the Property. Closing We will conduct the closing on the Transaction. The closing can occur in our offices or another location that works better for the parties. The County agrees to wire the closing funds into my trust account prior to the closing. We will make every effort to provide the County with a draft of the settlement stateirzent no less than 24 hours prior to the closing date_ Following the closing, we will update title and record the new plat, if any, and Deed in the office of the Register of Deeds and prepare a final title opinion and deliver the same to Investors Title for issuance of the title insurance policy. Wire Jnstructions BEFORE SENDING ANY WIRE, CALF, OUR OFFICE AT (919) 490-0500 TO VERIFY THE INSTRUCTIONS. WE WILL NOT CHA'N'GE WIRING INSTRUCTIONS. IF YOU RECEIVE WIRING INS'T'RUCTIONS FOR A DIFFERENT RANI{, BRANCH LOCATION, ACCOUNT NAME OR ACCOUNT NUMBER OTHER THAN THE INSTRUCTIONS YOU HAVE ON FILE, THEY SHOULD BI's PRESUMED FRAUDULENT. DO NOT SEND ANY FUNDS AND CONTACT OUR OFFICE INLMEDIATELY, FAILURE TO FOLLOW THIS PROCEDURE ENDANGERS YOUR FUNDS. Legal Fees & Extienses This engagement is specifically limited to: (1) performing the title search; (2) preparing the title opinion; (3) procuring title insurance (if available); (4) disusing any title issues discovered during the title search with the County; (5) recording the documents listed above; and (6) conducting the closing on the purchase. Please he aware that additional work necessary to complete the closing, such as attempting to resolve significant title defects, significant work related to locating, heirs or resolving estate issues related to the property in the chain of title, etc., may require work beyond the scope of this letter and cost in kennon t aver, pllc 1011 "we.300.. d[ h—, h, 27 -07 + Puf gf-bar 5157], dh,,., rn 27: 71.7•la'.p TELEPHONE M4900500 FAX 919490087i • fe.—k...�a��rruxn -rune Revised 10/17 DocuSign Envelope ID: CB53B3F9- 97AB- 472A- A85A- 50053B9BEAB7 excess of the "not to exceed" fee listed below. In the event the County requires representation prior to closing or additional legal work not referenced in this letter becomes necessary, then eve may perform such work at the County's specific request under an amendment to this agreement at our nonnal hourly rates. We will bill the County at a discounted hourly rate of $250 for time spent by firm attorneys on the Transaction and $l 10 per hour for time spent by paralegals on the Transaction. Our legal fees for performing the legal work outlined herein will not exceed $6,500.00. We will may bill the County on a interim basis or collect all fees due at closing depending on In addition to the foregoing hourly fees, the County will be responsible far payment of any expenses incurred by our firm it7 connection with the closing such as express mail charges, and wire fees each and all of which will be set out on the settlement statement at closing. The County will also be responsible for other typical costs of closing such as recording fees and survey expenses. Please understand that we must charge for all work performed even if this transaction fails for any reason. Please do not hesitate to contact me with any questions or cggei§ias regarding this letter. 1 look forward to working with you on this transaction. / Revised 10/17 QocuSignerdd by: ,y,� FLPIM I naAA� T t.f a '7/2018 r`t�nll I f DocuSigned by: 26WAA. lh *d $w2018 03379946755E477... Member ke non em y ver, P& s011 unirrrreap d--rzr.:uire •3i1U. durham, nr,?.'?U' pairs roar 51 ?"9. dre rryarrr, w2-7J '25-9 7Ei.EPHDNF 41939,00500 FAX 919491108,.3 - awa:,Fr+Dwarret-eoru