LEASE AND SALES LISTING AGREEMENT
THIS LEASE made as of March 30, 1997, by and between Model Homes,
L.L.C., an Illinois limited liability company ("Lessor"), and United Homes,
Inc. ("Lessee").
WITNESSETH
WHEREAS, pursuant to that certain Real Estate Sale Contract dated March 30,
1997 (the "Agreement") Lessee as Seller, sold to Lessor, as Purchaser, the
Premises, as that term is hereinafter defined; and
WHEREAS, Lessee acknowledges that, prior to the date hereof, it has been in
full and complete possession of the Premises and is fully aware of the condition
of the Premises and all portions thereof, and that this demise is on a strictly
"AS IS" basis with no representations, warranties, covenants or agreements as to
the condition or state of said Premises or any portion thereof being made by the
Lessor.
NOW, THEREFORE, Lessor and Lessee hereby agree as follows:
ARTICLE I
DEFINITIONS
The following terms shall have the following meanings for all purposes of this
Lease:
"Base Monthly Rent" means as to any parties of the Premises, the amount
specified on EXHIBIT A.
"Default Rate" means an amount of interest equal to the lesser of the highest
permitted annual interest rate Lessor may charge Lessee or 18% annum.
"Lease Term" means the period described in Article III.
"Lease Year" shall be defined as a period of twelve (12) consecutive calendar
months. The first Lease Year shall begin on the commencement date (as defined in
Article III); however, rent payments shall begin being due on the day after the
date hereof.
"Lessee" shall mean Lessee and its permitted successors and assigns.
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"Premises" means collectively the real property, together with all buildings,
structures and site improvements located thereon, at the property listed on
EXHIBIT A attached hereto, and all rights, easements and interests appurtenant
thereto, including, but not limited to, any street or public ways adjacent to
the Premises and any water and mineral rights, to the extent that the same have
been conveyed to Lessor by Lessee pursuant to the terms of this Agreement.
"Rent" means the aggregate of all sums becoming due and payable under this Lease
from the Lessee whether as Base Monthly Rent, or otherwise.
"Units" means the model units built on the Premises. "Unit" shall mean any one
of the Units.
ARTICLE II
DEMISE OF PREMISES
In consideration of the rentals and other sums to be paid by Lessee and of the
other terms, covenants and conditions on Lessee's part to be kept and performed,
Lessor hereby leases to Lessee, and Lessee hereby takes and hires, from Lessor
the Premises.
ARTICLE III
LEASE TERM
The Lease Term shall (i) be for five (5) Lease Years (unless sooner terminated
as specified herein); (ii) commences as of the first day of the month following
the date hereof (unless the date hereof is the first day of a calendar month in
which case this Lease will commence as of the date hereof) ("Commencement
Date"); and (iii) expire on the earlier of (a) expiration of five (5) Lease
Years, or (b) as to any Unit, sale of the Unit by Lessee on behalf of Lessor
pursuant to the terms hereof. Notwithstanding said Lease Term, if Lessee, as
agent for Lessor has not sold all Units on expiration of the Lease Term, Lessor
or Lessee may extend the term of the Lease of two (2) successive one (1) year
periods.
ARTICLE IV
RENTAL
Lessee agrees to pay to Lessor, or to such other person or entity as Lessor may
from time-to-time direct, without demand, deduction, set-off or abatement at
such place as Lessor, by notice in writing to Lessee from time to time may
direct, Base Monthly Rent in advance in monthly installments on the first day of
each calendar month of the Lease Term. One thirtieth (1/30th) of each monthly
payment shall be due and payable for each day of any portion of a month less
than a full month, and shall be payable on the first day of such partial month.
If Base Monthly Rent is not paid prior to the tenth (10th) day of any calendar
month during the Lease Term, a late fee equal to 5% of the then due amount may
be charged by Lessor to Lessee, such sum to be due and payable immediately upon
receipt by Lessee of an invoice for the same from Lessor.
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ARTICLE V
RENTAL TO BE NET TO LESSOR
Lessee recognized and acknowledges, without limiting the generality of any other
term or provision of this Lease, that it is the intent of the parties hereto
that the Base Monthly Rent to be paid by Lessee to Lessor shall be absolutely
net to Lessor; and any and all charges, assessments, impositions and expenses
pertaining to or levied against the Premises and any and all portions thereof,
including, without limiting the generality of the foregoing, and any all taxes,
assessments, general or special, water rates, license fees, fuel costs, steam
costs, insurance premiums, utility bills, costs of repair, maintenance
(structural or otherwise), operation and restoration of the Premises (including
all improvements now or hereafter made thereon and any and every part thereof),
shall be the sole and absolute obligations of and paid by Lessee as Lessee's
sole and exclusive cost and expense, all as herein and elsewhere more
particularly set forth.
ARTICLE VI
TAXES AND ASSESSMENTS
(a) Lessee shall pay, as the same become due and prior to delinquency, all
taxes and assessments which may be levied, assessed, imposed, or become liens on
the Premises or which arose out of the use or occupancy of the Premises (the
"Taxes").
(b) Lessee shall have the right to contest, in good faith and with due
diligence, the validity or amount of any Taxes levied or assessed against the
Premises by appropriate legal proceedings which shall have the effect of
preventing the collection of the Taxes so contested.
ARTICLE VII
UTILITIES
Lessee shall contract, in its own name, for and pay when due, all charges in
connection or use of water, gas, electricity, telephone, garbage collection,
sewer use and other utility services supplied to the Premises during the Lease
Term. Under no circumstances shall Lessor be responsible or liable for any
interruption, termination or the lack or quality of any utility service.
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ARTICLE VIII
INSURANCE
Lessee shall maintain, at its sole cost and expense, the following types and
amounts of insurance insuring Lessee, and naming as additional insureds Lessor,
and the holder(s) of any mortgage or deed of trust encumbering the Premises
(which insurance may be included under a blanket insurance policy if all the
other terms hereof are satisfied), in addition to such other insurance as Lessor
may from time-to-time reasonably require:
(a) Insurance against loss, damage or destruction by fire and other casualty,
including theft, vandalism and malicious mischief, flood (if the Premises are in
a flood hazard area), all matters covered by a standard extended coverage
endorsement insuring the Premises, and all improvements thereon for 100% of
their full replacement cost. Any insurance policy or policies shall designate
Lessor and Lessee as the named insureds as their interest may appear and shall
be payable as set forth herein.
(b) Comprehensive public liability and property damage insurance, against
bodily injury liability, property damage liability, including, without
limitation, any liability arising out of the ownership, maintenance, repair,
condition or operation of the Premises or adjoining ways, streets or sidewalks.
Such insurance policy shall be in amounts of not less than $1,000,000 per injury
and occurrence with respect to any insured liability, whether for personal
injury or property damage.
ARTICLE IX
COMPLIANCE WITH LAWS
(a) Lessee's use and occupation of the Premises shall not be in violation of
any governmental requirement, law, ordinance, statute, ruling or the like
applicable to the Lessee, the Premises or the use thereof, including without
limitation, any local state, or federal environmental requirement, law,
ordinance, statute or ruling related to Hazardous Substances (as hereinafter
defined). Lessee shall, at Lessee's sale cost and expense, also comply with all
applicable directions, rules and regulations of the fire marshal, health
officers, building inspector or other proper officers of any governmental agency
having jurisdiction.
(b) Lessee shall not create, store or release or allow the creation, storage or
release of any Hazardous Substances on the Premises. "Hazardous Substances"
shall mean: Any substance or material on the Premises defined or designated as
hazardous or toxic waste, hazardous or toxic materials, a hazardous or toxic
substance, or other similar term by any federal, state or local environmental
statute, regulation or ordinance presently in effect.
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ARTICLE X
MAINTENANCE
(a) Lessee hereby accepts the Premises "AS IS," with no representation or
warranty of Lessor as to the condition thereof.
(b) Lessee shall at all times, at its sole cost and expense, maintain and
repair, as necessary, the Premises.
ARTICLE XI
ALTERATIONS
Lessee shall not commit actual or constructive waste upon the Premises, but may
alter the exterior and interior elements of the Premises in any manner without
the prior written consent of Lessor. Any work at any time commenced by Lessee on
the Premises shall be prosecuted diligently to completion, shall be of good
workmanship and materials and shall comply fully with all the terms of this
Lease.
ARTICLE XII
INDEMNIFICATION
Lessee shall indemnify and hold harmless Lessor from and against any and all
claims, demands, causes of action, suits, proceedings, liabilities, damages,
losses, costs and expenses, including attorneys' fees, caused by, incurred or
resulting from its operation or sale of or relating in any manner to the
Premises, whether relating to their original design or construction, latent
defects, alteration, maintenance, use by Lessee or any person thereon,
supervision or otherwise, or from any breach of, default under or failure to
perform any term or provision of this agreement by Lessee, its officers,
employees, agents or other persons. It is expressly understood that Lessee's
obligations under this Article shall survive the expiration or earlier
termination of this Lease.
ARTICLE XIII
QUIET ENJOYMENT
So long as Lessee shall pay rental and other sums herein provided and shall keep
and perform all of the terms, covenants and conditions on its part therein
contained, Lessor covenants that Lessee, subject to Lessor's rights herein,
shall have the right to the peaceful and quiet use and occupancy of the
Premises.
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ARTICLE XIV
CONDEMNATION OR DESTRUCTION
(a) In case of a taking of all or any part of the Premises or commencement of
any proceedings or negotiations which might result in a taking, for any
public or quasi-public purpose by any lawful power or authority by exercise
of the right of condemnation or eminent domain or by agreement between
Lessor, Lessee and those authorized to exercise such right ("Taking"), Lessee
will promptly give written notice thereof to Lessor, generally describing the
nature and extent of such Taking.
(b) In the event of (i) a Taking; or (ii) of damage or destruction to all or
any part of the Premises, all awards, compensation or damages up to the amount
designated on EXHIBIT A as to each Unit shall be paid to Lessor, and the
remaining sum shall be paid to Lessee. Upon payment to Lessor of the indicated
amount this Lease shall terminate as to that Unit, and the Base Annual Rental
shall be reduced by 10% of the amount paid to Lessor.
ARTICLE XV
DEFAULT AND REMEDIES
(a) Each of the following shall be deemed a breach of this Lease and a default
("Default") by Lessee:
(i) If any Rent due remains unpaid for ten (10) days after notice of
non-payment from the Lessor;
(ii) If Lessee becomes insolvent, performs any act of bankruptcy or is not
generally paying its debts as the same become due.
(iii) If Lessee breaches any covenant or obligation set forth herein,
which breach is not cured within 30 days after receipt of written notice from
Lessor specifying the breach.
(b) In the event of any breach or default and failure by Lessee to cure said
default as provided herein, Lessor shall be entitled to exercise, at its option,
concurrently, successively or in any combination, all remedies available at law
or in equity.
(c) In addition, in the event of any Default by Lessee, Lessor may, but shall
not be obligated to, immediately or at any time thereafter, and without notice,
except as required herein, correct such Default for the account and at the
expense of Lessee. Any sum or sums so paid by Lessor, together with interest at
the Default Rate and all costs and damages, shall be deemed to be additional
Rent hereunder and shall be immediately due from Lessee to Lessor.
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ARTICLE XVI
MORTGAGE AND SUBORDINATION
(a) Lessee shall keep the Premises, and Lessor's interest therein, free from
any liens for work performed, materials furnished or obligations incurred by
Lessee. If any such lien shall at any time be filed, Lessee shall cause the
same to be vacated and canceled of record within forty-five (45) days after the
date of filing thereof. If Lessee shall fail to vacate, contest or release such
lien in the manner and within the time period aforesaid, such failure shall be a
Default, and in addition to all other rights and remedies available to Lessor
resulting therefrom, Lessor may, but shall not be under any obligation to,
vacate or release said lien either by paying the amount claimed to be due, or by
procuring the release of such lien by giving security or in such other manner as
may be prescribed by law. Lessee shall reimburse Lessor, upon demand, all sums
disbursed or deposited by Lessor pursuant to the foregoing provisions of this
paragraph, including Lessor's costs and expenses and reasonable attorneys' fees
incurred in connection therewith, with interest thereon at the Default Rate.
(b) NOTICE IS HEREBY GIVEN THAT LESSEE IS NOT AUTHORIZED TO PLACE ANY LIEN,
MORTGAGE, DEED OR TRUST OR ENCUMBRANCE OF ANY KIND UPON ALL OR ANY PART OF THE
PREMISES OR LESSEE'S LEASEHOLD INTEREST THEREIN, (SAVE AND EXCEPT FOR PURCHASE
MONEY LIENS ON PERSONAL PROPERTY AND/OR FIXTURES) AND ANY SUCH PURPORTED
TRANSACTIONS HALL BE VOID UNLESS LESSOR SHALL FIRST CONSENT IN WRITING TO EACH
SAID ENCUMBRANCE, WHICH CONSENT SHALL BE IN LESSOR'S SOLE DISCRETION.
ARTICLE XVII
ASSIGNMENT AND SUBLETTING
(a) Lessor shall not have the right to sell or convey the Premises subject to
this Lease or to assign the right, title and interest as Lessor under this
lease, in whole or in part.
(b) Lessee acknowledges that ad an inducement to enter into this lease, Lessor
has relied both on the business experience and creditworthiness of Lessee and
the particular purpose for which lessee intends to use the Premises, therefore,
Lessee shall not assign this Lease or any interest therein, or sublet all or
part of the Premises, other than to an entity affiliated with Lease.
ARTICLE XVIII
SALES LISTING AGREEMENT
(a) Lessor agrees that Lessee shall be the exclusive listing agent for the
Units during the Lease Term at all times and that Lessee may list for sale and
sell any of the Units at any time during the Lease Term. Such sale shall be on
any terms and conditions and at a sales price acceptable to and determined by
Lessee. Lessee
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shall receive a sales commission on each sale equal to the greater of 1 1/2% of
the sales price of said Unit or the amount required to pay out as commissions on
the sale.
(b) On any sale Lessor shall pay, at closing, standard title, transfer tax,
closing and sale charged and fees paid by Sellers of residential property.
(c) Notwithstanding (a) and (b) above, Lessee hereby guarantees that upon the
sale of any Unit, Lessor will receive, after payment of all items described in
(a) and (b) above no less than the Appraised Value specified for that Unit on
EXHIBIT A attached hereto. Any sales proceeds (after payment of commissions,
fees, and costs) in excess of the Appraised Value shall be paid to Lessor.
(d) At the closing of any Unit, Lessor will execute any and all documents,
including, but not limited to, a deed, xxxx of sale, affidavit of title, ALTA
statement, and any other documents necessary to complete the sale of the Unit.
ARTICLE XIX
NOTICES
All notices, demands, requests, consents, approvals or other instruments
required or permitted to be given by either party pursuant to this lease shall
be in writing and shall be deemed to have properly given if sent by either (i)
registered or certified mail, postage prepaid; or (ii) by a recognized national
overnight courier service (e.g. Federal Express) with instructions and payment
for next business day delivery, to the parties at the addresses set forth on the
signature page, hereof and/or to such other address as either party may give
notice pursuant to this section from time-to-time. All notices shall be deemed
received and effective on the first to occur of the following: (i) delivery;
(ii) refusal of delivery; or (iii) the third business day after posting or
delivery to the courier service.
ARTICLE XX
WAIVER OF AMENDMENT
No provision of this Lease shall be deemed waived or amended excepted by a
written instrument signed by the party against which enforcement of such waiver
or amendment is sought. Waiver of any matter shall not be deemed a waiver of the
same or any other matter on any future occasion. The parties hereto acknowledge
that Units will be deleted from coverage of this Lease as such Units are sold,
and that certain new Units may be added to the coverage of this Lease, by
amending EXHIBIT A to include such new Units.
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ARTICLE XXI
JOINT VENTURE
None of the agreements contained herein, is intended, nor shall the same be
deemed or construed to create a partnership between Lessor and Lessee, to make
them joint venturers, nor to make Lessor in anyway responsible for the debts or
losses of Lessee.
ARTICLE XXII
HEADINGS
Captions are used throughout this Lease for convenience of reference only and
shall not be considered in any manner in the construction or interpretation
hereof.
ARTICLE XXIII
SEVERABILITY
The provisions of this Lease shall be deemed severable. If any part of this
Lease shall be held unenforceable by any court of competent jurisdiction, the
remainder shall remain in full force and effect, and such unenforceable
provision shall be reformed by such court so as to give maximum legal effect to
the intention of the parties as expressed herein.
ARTICLE XXIV
ATTORNEYS' FEES
In the event of any judicial or other adversarial proceeding between the parties
concerning this lease, to the extent permitted by law, the prevailing party
shall be entitled to recover all of its reasonable attorney's fees and other
costs in addition to any other relief to which it may be entitled.
ARTICLE XXV
ENTIRE AGREEMENT AND INCORPORATION
This Lease, and any other instruments or agreements referred to herein,
constitute the entire agreement between the parties with respect to the subject
latter hereof, and there are no other representations, warranties or agreements
except as herein provided. Each and every of the recitals set forth on page 1
are hereby incorporated as if fully re-written.
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XXVII
COUNTERPARTS
This Lease may be executed in one or more counterparts, each of which shall be
deemed an original.
IN WITNESS WHEREOF, Lessor and Lessee have entered into this Lease as of the
year and day first above written.
LESSEE: LESSOR:
UNITED HOMES, INC. MODEL HOMES, L.L.C.
By: __________________________ By: __________________________
0000 Xxxx Xxxx 0000 Xxxx Xxxx
Xxxxx 000 Xxxxx 000
Xxxxxxx Xxxxxxx, XX 00000 Xxxxxxx Xxxxxxx, XX 00000
Attn: Xxxxx Xxxxxxx Attn: Xxxxxxx X. Xxxxx, Xx.
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EXHIBIT A
SUBDIVISION MODEL LOT MODEL APPRAISAL LOAN
NAME TYPE NUMBER ADDRESS VALUE VALUE
----------- ----- ------ ------- --------- ---------
ILLINOIS
Bristol Park, Tinley Park Ash 198 0000 Xxxxxxx Xxxx Xxxxx $ 170,000 $ 000,000
Xxxxxxx Xxxx, Xxxxxx Xxxx Birch 198 0000 Xxxxxxx Xxxx Xxxxx $ 166,000 $ 000,000
Xxxxxxx Xxxx, Xxxxxx Xxxx Cypress 198 0000 Xxxxxxx Xxxx Xxxxx $ 173,000 $ 129,750
Bristol Park, Tinley Park Dogwood - Alt. 198 0000 Xxxxxxx Xxxx Xxxxx $ 198,000 $ 148,500
Xxxxxxx Xxx, Xxxxxxx Xxxx Xxxxxxxx 0000X 102 0000 Xxxxxxx Xxxxx $ 240,000 $ 180,000
Harvest Run, Crystal Lake Dover 9904C 101 1224 Barlina Drive $ 340,000 $ 255,000
Xxxxx Xxxx, Xxxxxxxxx Xxxxxxxxxx 0000X 000 Xxxxx Xxxxx $ 238,000 $ 178,500
Royal Hill, Algonquin Normandy 9813C 000 Xxxxx Xxxxx $ 236,000 $ 177,000
Royal Hill, Algonquin Barrister 9823C 000 Xxxxx Xxxxx $ 265,000 $ 198,750
Xxxxx Xxxx, Xxxxxxxxx Xxxxxxxxx 0000X 000 Xxxxx Xxxxx $ 202,000 $ 151,500
ARIZONA
Red Dog Ranch, Cave Creek 2700 Expanded Xxx 00 00000 Xxxxxx Xxxxxx Xx. $ 337,500 $ 253,125
Red Dog Ranch, Cave Creek 3500 Expanded Xxx 00 0000 Xxxxxxxx Bluff $ 323,500 $ 242,625
Xxxxxxx Xxxxxxx 2402 A Xxx 00 000 X. Xxxxxx $ 190,000 $ 142,500
Xxxxxxx Xxxxxxx 2592C Xxx 00 000 X. Xxxxxx $ 190,000 $ 142,500
Xxxxxxx Xxxxxxx 3320B Xxx 00 000 X. Xxxxxx $ 225,000 $ 168,750
Xxxxxxx Xxxxxxx Xxx 00 000 X. Xxxxxx $ 233,000 $ 174,750
Sub-Total Page 1 $3,727,000 $2,795,250
MICHIGAN
Bayberry Farms, Wyoming Monarch 2 0000 Xxxxxxxx Xxxxx Xx. $ 145,500 $ 109,125
Bayberry Farms, Wyoming Fawn 3 0000 Xxxxxxxx Xxxxx Xx. $ 147,000 $ 110,250
Quail Xxxxxxx, Kalamazoo 1 0000 Xxxxx Xxx Xxxxx $ 155,000 $ 116,250
Quail Xxxxxxx, Kalamazoo 1A 0000 Xxxxx Xxxx Xx. $ 164,000 $ 123,000
Quail Xxxxxxx, Kalamazoo 2 0000 Xxxxx Xxx Xxxxx $ 175,000 $ 131,250
Quail Xxxxxxx, Kalamazoo 2A 0000 Xxxxx Xxxx Xx. $ 148,000 $ 111,000
Sub-Total Page 2 $ 934,500 $ 700,875
CURRENTLY FINANCED $4,661,500.00 $3,496,125.00
15% ANNUAL
RETURN ON
CASH
INVESTMENT TOTAL
SUBDIVISION MODEL LOT MODEL MONTHLY DEBT CASH (REFLECTED MONTHLY
NAME TYPE NUMBER ADDRESS P&I PAYMENT INVESTMENT MONTHLY) BASE RENT
----------- ----- ------ ------- ------------ ---------- ---------- ---------
ILLINOIS
Bristol Park, Tinley Park Ash 198 0000 Xxxxxxx Xxxx Xxxxx $ 991.69 $ 25,500 $ 318.75 $ 1,310.44
Bristol Park, Tinley Park Birch 198 0000 Xxxxxxx Xxxx Xxxxx $ 968.35 $ 24,900 $ 311.25 $ 1,279.60
Bristol Park, Tinley Park Cypress 198 0000 Xxxxxxx Xxxx Xxxxx $ 1,009.19 $ 25,950 $ 324.38 $ 1,333.57
Bristol Park, Tinley Park Dogwood - Alt. 198 0000 Xxxxxxx Xxxx Xxxxx $ 1,155.02 $ 29,700 $ 371.25 $ 1,526.27
Xxxxxxx Xxx, Xxxxxxx Xxxx Xxxxxxxx 0000X 102 0000 Xxxxxxx Xxxxx $ 1,400.03 $ 36,000 $ 450.00 $ 1,850.03
Harvest Run, Crystal Lake Dover 9904C 101 1224 Barlina Drive $ 1,983.37 $ 51,000 $ 637.50 $ 2,620.87
Xxxxx Xxxx, Xxxxxxxxx Xxxxxxxxxx 0000X 000 Xxxxx Xxxxx $ 1,388.36 $ 35,700 $ 446.25 $ 1,834.61
Royal Hill, Algonquin Normandy 9813C 000 Xxxxx Xxxxx $ 1,376.69 $ 35,400 $ 442.50 $ 1,819.19
Royal Hill, Algonquin Barrister 9823C 000 Xxxxx Xxxxx $ 1,545.86 $ 39,750 $ 496.88 $ 2,042.74
Xxxxx Xxxx, Xxxxxxxxx Xxxxxxxxx 0000X 000 Xxxxx Xxxxx $ 1,178.36 $ 30,300 $ 378.75 $ 1,557.11
ARIZONA
Red Dog Ranch, Cave Creek 2700 Expanded Xxx 00 00000 Xxxxxx Xxxxxx Xx. $ 1,991.34 $ 50,625 $ 632.81 $ 2,624.15
Red Dog Ranch, Cave Creek 3500 Expanded Xxx 00 0000 Xxxxxxxx Bluff $ 1,908.74 $ 48,525 $ 606.56 $ 2,515.30
Xxxxxxx Xxxxxxx 2402 A Xxx 00 000 X. Xxxxxx $ 1,033.23 $ 28,500 $ 356.25 $ 1,389.48
Xxxxxxx Xxxxxxx 2592C Xxx 00 000 X. Xxxxxx $ 1,033.23 $ 28,500 $ 356.25 $ 1,389.48
Xxxxxxx Xxxxxxx 3320B Xxx 00 000 X. Xxxxxx $ 1,223.56 $ 33,750 $ 421.88 $ 1,645.44
Xxxxxxx Xxxxxxx Xxx 00 000 X. Xxxxxx $ 1,267.06 $ 34,950 $ 436.88 $ 1,703.94
Sub-Total Page 1 $ 8,457.16 $559,050 $6,988.14 $28,442.22
MICHIGAN
Bayberry Farms, Wyoming Monarch 2 0000 Xxxxxxxx Xxxxx Xx. $ 848.77 $ 21,825 $ 272.81 $ 1,121.58
Bayberry Farms, Wyoming Fawn 3 0000 Xxxxxxxx Xxxxx Xx. $ 857.52 $ 22,050 $ 275.63 $ 1,133.15
Quail Xxxxxxx, Kalamazoo 1 0000 Xxxxx Xxx Xxxxx $ 873.35 $ 23,250 $ 290.63 $ 1,163.98
Quail Xxxxxxx, Kalamazoo 1A 2074 Quail Cove Dr. $ 924.06 $ 24,600 $ 307.50 $ 1,231.56
Quail Xxxxxxx, Kalamazoo 2 0000 Xxxxx Xxx Xxxxx $ 986.04 $ 26,250 $ 328.13 $ 1,314.17
Quail Xxxxxxx, Kalamazoo 2A 2070 Quail Cove Dr. $ 833.91 $ 22,200 $ 277.50 $ 1,111.41
Sub-Total Page 2 $ 5,323.65 $140,175 $1,752.20 $ 7,075.85
CURRENTLY FINANCED $13,780.81 $699,225.00 $8,740.34 $35,518.07
REAL ESTATE SALE CONTRACT
(CONDOMINIUM TOWNHOME AND SINGLE FAMILY MODEL UNITS)
1. Model Homes, L.L.C. ("Purchaser") agrees to purchase at a price of
$4,661,500 on the terms set forth herein, the following described real estate
(certain model condominium, townhome and single family units) in the locations
set forth on EXHIBIT B (collectively the "Property").
See Exhibit A for legal descriptions
commonly known as, see EXHIBIT B for common address, each being either a
condominium unit which may be subject to a condominium association, along with
an interest in the Common Elements, appurtenant to such units, a townhome unit,
which may be subject to a townhome association, or a single family home which
may be subject to a homeowners association together with the following property
presently located thereon: (a) doors and windows; (b) wall-to-wall, hallway and
stair carpeting; (c) electric, plumbing and other attached fixtures as
installed. No personal property, furniture, office equipment, artwork, or
fixtures not permanently attached are included in this sale.
2. United Homes, Inc. (Seller) agrees to sell the real estate and the
property, if any, described above at the price and terms set forth herein, and
to convey or cause to be conveyed to Purchaser by a recordable warranty deed (or
if applicable, trustee's deed), with release of homestead rights, and a proper
xxxx of sale, subject only to: (a) covenants, conditions and restrictions of
record; (b) public and utility easements and visible roads and highways, if any;
(c) party wall rights and agreements, if any; (d) the lease to be entered into
between Seller and Purchaser; (e) special taxes or assessments for improvements
not yet completed; (f) any unconfirmed special tax or assessment; (g)
installments not due at the date hereof of any special tax or assessment for
improvements heretofore completed; (h) mortgage or trust deed specified below,
if any; (i) general taxes for the year 1996 and subsequent years including taxes
which may accrue by reason of new or additional improvements during the
year(s)1996; (j) Association Documents (as defined below); (k) a mortgage lien
securing a debt in the amount specified; and (l) exceptions shown on title
commitment approved by Purchaser.
3. Purchaser has paid $100.00 as xxxxxxx money to be applied on the purchase
price, and agrees to pay or satisfy the balance of the purchase price, plus or
minus prorations, at the time of closing as follows:
(a) The payment of $699,225.00 in xxxx, xxxxxxx money being returned to
Purchaser at closing (see Exhibit B for allocation to individual lots).
(b) Execution of a promissory note in the original principal amount of
$466,150.00, which rate shall bear interest at 10%, and shall be in the form of
EXHIBIT C attached hereto; and
(c) Acceptance of the Property subject to a mortgage, or deed of trust lien,
securing a loan in the original amount specified on EXHIBIT B, as to each unit
listed thereon.
4. The time of closing shall be on March 30, 1997.
5. Seller shall retain possession of the Property pursuant to a lease
agreement executed by and between Seller and Purchaser.
6. Seller agrees to pay a broker's commission to: N/A
7. The xxxxxxx money shall be held by Seller for the mutual benefit of
the parties.
8. Seller agrees to maintain possession of the real estate in the same
condition as it is at the date of this contract, ordinary wear and tear
excepted.
9. Purchaser hereby acknowledges receipt from Seller of the following
documents and information relating to units of the Property: (a)
Condominium/Townhome/Homeowners Declaration, (b) By-Laws of
Condominium/Townhome/Homeowners Association, (c) the proposed or current budget
of the Condominium/Townhome/Homeowners Association, and (d) floor plan of the
units (collectively the "Association Documents"). Seller reserves the right to
change or amend any of the Association Documents.
This contract is subject to the Conditions and Stipulations set forth on the two
following pages, which Conditions and Stipulations are made a part of this
contract.
DATED March 30, 1997
PURCHASER Model Homes, L.L.C. (ADDRESS) 0000 Xxxx Xxxx, Xxxxx 000
Xxxxxxx Xxxxxxx XX 00000
By: ____________________________
SELLER United Homes, Inc. (ADDRESS) 0000 Xxxx Xxxx, Xxxxx 000
Xxxxxxx Xxxxxxx XX 00000
By: ____________________________
CONDITIONS AND STIPULATIONS
1. Seller shall deliver or cause to be delivered to Purchase or Purchaser's's
agent, not less than 5 days prior to the time of closing, a title commitment for
an owner's title insurance policy issued by the Chicago Title Insurance Company
in the amount of the purchase price, covering title to the real estate on or
after the date hereof, showing title in the intended grantor subject only to (a)
the general exceptions contained in the policy unless the real estate is
improved with a single family dwelling or an apartment building of four or fewer
residential units. (b) the title exceptions set forth above, and (c) title
exceptions pertaining to liens or encumbrances of a definite or ascertainable
amount which may be removed by the payment of money at the time of closing and
which the seller may so remove at that time by using the funds to be paid upon
the delivery of the deed (all of which are herein referred to as the permitted
exceptions). The title commitment shall be conclusive evidence of good title as
therein shown as to all matters insured by the policy, subject only to the
exceptions as therein stated. Seller also shall furnish Purchaser an affidavit
of title in customary form covering the date of closing and showing title in
Seller subject only to the permitted exceptions in foregoing items (b) and (c)
unpermitted exceptions, if any, as to which the title insurer commits to extend
insurance in the manner specified in paragraph 2 below.
2. lf the title commitment discloses unpermitted exceptions. Seller shall have
30 days from the date of delivery thereof to have the exceptions removed from
the commitment or to have the title insurer commit to insure against loss or
damage that may be occasioned by such exceptions, and, in such event, the time
of closing shall be 35 days after delivery of the commitment or the time
specified in paragraph 5 on the front page hereof, whichever is later. If Seller
fails to have the exceptions removed, or in the alternative, to obtain the
commitment for title insurance specified above as to such exceptions within the
specified time. Purchaser may terminate this contract or may elect. Upon notice
to Seller within 10 days after the expiration of the 30-day period. to take
title as it then is with the right to deduct from the purchase price liens or
encumbrances of a definite or ascertainable amount. If Purchaser does not so
elect, this contract shall become null and void without further actions of the
parties.
3. There shall be no prorations as Seller will execute a "net" lease at or
prior to closing. Seller shall pay the amount of any stamp tax imposed by State
law on the transfer of the title, and shall furnish a completed real estate
Transfer Declaration signed by the Seller or the Seller's agent in the form
required pursuant to the Real Estate transfer Tax Act of the State of Illinois
and shall furnish any declaration signed by the Seller or the Seller's agent or
meet other requirements as established by any local ordinance with regard to a
transfer or transaction tax; such tax required by local ordinance shall be paid
by the party upon whom such ordinance places responsibility therefor.
4. The provisions of the Uniform Vendor and Purchaser Risk Act (If the State
of Illinois shall be applicable to this contract).
5. This Contract may be terminated by either party prior to closing by payment
to the other party of actual costs incurred by the non-terminating party.
6. At the election of Seller or Purchaser upon notice to the other party not
less than 5 days prior to the time of closing this sale shall be closed through
an escrow with Chicago Title and Trust Company. in accordance with the general
provisions of the usual form of Deed and Money Escrow Agreement then in use by
Chicago Title and Trust Company with such special provisions inserted in the
escrow agreement as may be required to conform with this contract. Upon the
creation of such an escrow, anything herein to the contrary notwithstanding,
payment of purchase price and delivery of deed shall be made through the escrow
and this contract and the xxxxxxx money shall be deposited in the escrow. The
cost of the escrow shall be divided equally between Seller and Purchaser.
7. Time is of the essence of this contract.
8. All notices herein required shall be in writing and shall be served on the
parties at the addresses following their signatures. The mailing of a notice by
registered or certified mail, return receipt requested, shall be sufficient
service.
9. Purchaser and Seller hereby agree to make all disclosures and do all things
necessary to comply with the applicable provisions of the Real Estate Settlement
Procedures Act of 1974. In the event that either party shall fail to make
appropriate disclosure when asked, such failure shall be considered a breach on
the part of said party.
10. Seller represents that he is not a "foreign person" as defined in Section
1445 of the Internal Revenue Code and is therefore exempt from the withholding
requirements of said Section. Seller will furnish Purchaser at closing the
Exemption Certification set forth in said Section.
11. A condition to this Contract is the execution by Seller and Purchaser of a
"Lease and Sale Listing Agreement" acceptable to Seller and Purchaser.
12. Seller hereby grants to Purchaser a first right to acquire model homes
constructed by Seller in Arizona, Michigan and Illinois, to the extent Seller
discusses to sell such Units. Seller shall notify Purchaser of its intent to
sell new model units, along with all information provided on EXHIBIT B attached
hereto, and Purchaser shall, within ten (10) days thereafter elect to purchase
said units or waive its right as provided herein.
EXHIBIT B
SUBDIVISION MODEL LOT MODEL APPRAISAL LOAN
NAME TYPE NUMBER ADDRESS VALUE VALUE
----------- ----- ------ ------- --------- ---------
ILLINOIS
Bristol Park, Tinley Park Ash 198 0000 Xxxxxxx Xxxx Xxxxx $ 170,000 $ 000,000
Xxxxxxx Xxxx, Xxxxxx Xxxx Birch 198 0000 Xxxxxxx Xxxx Xxxxx $ 166,000 $ 000,000
Xxxxxxx Xxxx, Xxxxxx Xxxx Cypress 198 0000 Xxxxxxx Xxxx Xxxxx $ 173,000 $ 129,750
Bristol Park, Tinley Park Dogwood - Alt. 198 0000 Xxxxxxx Xxxx Xxxxx $ 198,000 $ 148,500
Xxxxxxx Xxx, Xxxxxxx Xxxx Xxxxxxxx 0000X 102 0000 Xxxxxxx Xxxxx $ 240,000 $ 180,000
Harvest Run, Crystal Lake Dover 9904C 101 1224 Barlina Drive $ 340,000 $ 255,000
Xxxxx Xxxx, Xxxxxxxxx Xxxxxxxxxx 0000X 000 Xxxxx Xxxxx $ 238,000 $ 178,500
Royal Hill, Algonquin Normandy 9813C 000 Xxxxx Xxxxx $ 236,000 $ 177,000
Royal Hill, Algonquin Barrister 9823C 000 Xxxxx Xxxxx $ 265,000 $ 198,750
Xxxxx Xxxx, Xxxxxxxxx Xxxxxxxxx 0000X 000 Xxxxx Xxxxx $ 202,000 $ 151,500
ARIZONA
Red Dog Ranch, Cave Creek 2700 Expanded Xxx 00 00000 Xxxxxx Xxxxxx Xx. $ 337,500 $ 253,125
Red Dog Ranch, Cave Creek 3500 Expanded Xxx 00 0000 Xxxxxxxx Bluff $ 323,500 $ 242,625
Xxxxxxx Xxxxxxx 2402 A Xxx 00 000 X. Xxxxxx $ 190,000 $ 142,500
Xxxxxxx Xxxxxxx 2592C Xxx 00 000 X. Xxxxxx $ 190,000 $ 142,500
Xxxxxxx Xxxxxxx 3320B Xxx 00 000 X. Xxxxxx $ 225,000 $ 168,750
Xxxxxxx Xxxxxxx Xxx 00 000 X. Xxxxxx $ 233,000 $ 174,750
Sub-Total Page 1 $3,727,000 $2,795,250
MICHIGAN
Bayberry Farms, Wyoming Monarch 2 0000 Xxxxxxxx Xxxxx Xx. $ 145,500 $ 109,125
Bayberry Farms, Wyoming Fawn 3 0000 Xxxxxxxx Xxxxx Xx. $ 147,000 $ 110,250
Quail Xxxxxxx, Kalamazoo 1 0000 Xxxxx Xxx Xxxxx $ 155,000 $ 116,250
Quail Xxxxxxx, Kalamazoo 1A 0000 Xxxxx Xxxx Xx. $ 164,000 $ 123,000
Quail Xxxxxxx, Kalamazoo 2 0000 Xxxxx Xxx Xxxxx $ 175,000 $ 131,250
Quail Xxxxxxx, Kalamazoo 2A 0000 Xxxxx Xxxx Xx. $ 148,000 $ 111,000
Sub-Total Page 2 $ 934,500 $ 700,875
CURRENTLY FINANCED $4,661,500.00 $3,496,125.00
15% ANNUAL
RETURN ON
CASH
INVESTMENT TOTAL
SUBDIVISION MODEL LOT MODEL MONTHLY DEBT CASH (REFLECTED MONTHLY
NAME TYPE NUMBER ADDRESS P&I PAYMENT INVESTMENT MONTHLY) BASE RENT
----------- ----- ------ ------- ------------ ---------- ---------- ---------
ILLINOIS
Bristol Park, Tinley Park Ash 198 0000 Xxxxxxx Xxxx Xxxxx $ 991.69 $ 25,500 $ 318.75 $ 1,310.44
Bristol Park, Tinley Park Birch 198 0000 Xxxxxxx Xxxx Xxxxx $ 968.35 $ 24,900 $ 311.25 $ 1,279.60
Bristol Park, Tinley Park Cypress 198 0000 Xxxxxxx Xxxx Xxxxx $ 1,009.19 $ 25,950 $ 324.38 $ 1,333.57
Bristol Park, Tinley Park Dogwood - Alt. 198 0000 Xxxxxxx Xxxx Xxxxx $ 1,155.02 $ 29,700 $ 371.25 $ 1,526.27
Xxxxxxx Xxx, Xxxxxxx Xxxx Xxxxxxxx 0000X 102 0000 Xxxxxxx Xxxxx $ 1,400.03 $ 36,000 $ 450.00 $ 1,850.03
Harvest Run, Crystal Lake Dover 9904C 101 1224 Barlina Drive $ 1,983.37 $ 51,000 $ 637.50 $ 2,620.87
Xxxxx Xxxx, Xxxxxxxxx Xxxxxxxxxx 0000X 000 Xxxxx Xxxxx $ 1,388.36 $ 35,700 $ 446.25 $ 1,834.61
Royal Hill, Algonquin Normandy 9813C 000 Xxxxx Xxxxx $ 1,376.69 $ 35,400 $ 442.50 $ 1,819.19
Royal Hill, Algonquin Barrister 9823C 000 Xxxxx Xxxxx $ 1,545.86 $ 39,750 $ 496.88 $ 2,042.74
Xxxxx Xxxx, Xxxxxxxxx Xxxxxxxxx 0000X 000 Xxxxx Xxxxx $ 1,178.36 $ 30,300 $ 378.75 $ 1,557.11
ARIZONA
Red Dog Ranch, Cave Creek 2700 Expanded Xxx 00 00000 Xxxxxx Xxxxxx Xx. $ 1,991.34 $ 50,625 $ 632.81 $ 2,624.15
Red Dog Ranch, Cave Creek 3500 Expanded Xxx 00 0000 Xxxxxxxx Bluff $ 1,908.74 $ 48,525 $ 606.56 $ 2,515.30
Xxxxxxx Xxxxxxx 2402 A Xxx 00 000 X. Xxxxxx $ 1,033.23 $ 28,500 $ 356.25 $ 1,389.48
Xxxxxxx Xxxxxxx 2592C Xxx 00 000 X. Xxxxxx $ 1,033.23 $ 28,500 $ 356.25 $ 1,389.48
Xxxxxxx Xxxxxxx 3320B Xxx 00 000 X. Xxxxxx $ 1,223.56 $ 33,750 $ 421.88 $ 1,645.44
Xxxxxxx Xxxxxxx Xxx 00 000 X. Xxxxxx $ 1,267.06 $ 34,950 $ 436.88 $ 1,703.94
Sub-Total Page 1 $ 8,457.16 $559,050 $ 6,988.14 $28,442.22
MICHIGAN
Bayberry Farms, Wyoming Monarch 2 0000 Xxxxxxxx Xxxxx Xx. $ 848.77 $ 21,825 $ 272.81 $ 1,121.58
Bayberry Farms, Wyoming Fawn 3 0000 Xxxxxxxx Xxxxx Xx. $ 857.52 $ 22,050 $ 275.63 $ 1,133.15
Quail Xxxxxxx, Kalamazoo 1 0000 Xxxxx Xxx Xxxxx $ 873.35 $ 23,250 $ 290.63 $ 1,163.98
Quail Xxxxxxx, Kalamazoo 1A 2074 Quail Cove Dr. $ 924.06 $ 24,600 $ 307.50 $ 1,231.56
Quail Xxxxxxx, Kalamazoo 2 0000 Xxxxx Xxx Xxxxx $ 986.04 $ 26,250 $ 328.13 $ 1,314.17
Quail Xxxxxxx, Kalamazoo 2A 2070 Quail Cove Dr. $ 833.91 $ 22,200 $ 277.50 $ 1,111.41
Sub-Total Page 2 $ 5,323.65 $140,175 $ 1,752.20 $ 7,075.85
CURRENTLY FINANCED $13,780.81 $699,225.00 $ 8,740.34 $35,518.07
