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LTC 330-2023 Update on the Purchase of 8420 Byron Ave Unit 5D o cu Si g n En vel op e ID . A C 2 OE OF 4 -BAF 9 -4F 5 6-B8E C 8-E E D 6 23C 9DO 6F M IA M I BE A C H O FFIC E O F THE CITY M ANAGER NO. LTC # LE TT E R T O C O M M ISS IO N TO : FROM : DA TE: SUBJECT: Honorable Mayor Dan Gelber and Mem bers of the City Comm ission Alina T. Hudak , City M ana~ July 24, 2023 lJ\ '\i 1 Up da te on the Purcha se of 8420 Byron A ve Un it 5 The purpose of this Letter to Com m ission is to pro vide an update on the status of purchasing a condominium unit located at 8420 Byro n Ave Unit 5, M iami Beach, FL, utilizing Com munity Development Block Gra nt (CDBG ) funds. On June 28, 2023, the M ayor and City Comm ission authorized the purchase contract via Resolution No. 2023-32662. The City went under contract to purchase the property on June 30, 2023 and pro vided a $1,000 deposit. The Sale Application (Condominium Application) was subm itted to the association on July 6, 2023. As the closing date was scheduled fo r July 26, 2023, staff comm enced the due diligence process. A pro perty inspection revealed necessary maintenance repairs estimated at $1,555. Additionally, an appraisal was ordere d and completed, indicating a value of $215,000, which was $5,000 below the contract price offere d by the City. O n July 12, 2023, prior to com pletion of the title search pro cess and while awaiting approval of the condom inium board, the City received the condo estoppel, indicating the condominium board would be voting fo r a special assessm ent fo r the repair/replacement of the ro of, windows, and doors on July 20, 2023. If appro ved by the condominium board, the special assessm ent would be imposed in Sep tembe r 2023. It is im portant to note that this special assessm ent would be an additional expense to the current m aintenance/association fee, which is $414 per month. After careful consideration, it was determined that given the uncertainty and potential magnitude of the special assessm ent, it would not be in the City's best interest to acquire the pro perty. To cancel the sale, staff delivered the Seller's real estate agent a Notice of Termination letter on July 17, 2023, within the contra ct inspection period, avoiding fo rfeiture of the $1,000 depo sit. Following receipt of the Notice of Term ination, the Seller's agent sent the Release and Cancellation of Contract for signature by the City to authorize the escrow agent to disburse the deposit to the City. Staff originally focused on the property acquisition to meet the CDBG Timeliness Test deadline of July 27, 2023, whereby the City m ust reach a certain expenditure threshold. Nonetheless, recent unexpected advancem ents in the Neptune Apartm ents rehabilitation pro ject have significantly impacted the expenditure of funds. As a result, staff anticipates meeting the expenditure requirem ents within the specified timeline . Should you have any questions, please contact Alba Tarre, Departm ent Director for the Office of Housing and Com m unity Services, at (305) 673-7491. Attachm ent: Resolution No. 2023-32662 Nwce of Term ination Letter .55 330-2023 DocuSign Envelope ID: 0DB 650D6 -9206-40B86-A4808-94EBEDE 6D 18B MIAMI BEACH City of Miami Beach, 1700 Convention Center Drive, Miomi Beach, Florido 33139, www.miamibeachfl.gov Tel: (305) 673-7260 July 14, 2023 Mr. Carlos Gutierrez Best Realty of Miami 2474 SW 137" Aven ue Miami, Florida 33175 Via Overnight and E-Mail: csgvll@yahoo.com Re: Purchase and Sale Agreement for property located at 8420 Byron Avenue, Unit No. 5, Miami Beach, Florida 33141 (Prop erty), betw een the City of Miami Beach (Buyer) and RRE Proyect LLC (Seller) (the Contract); Notice of Termination of Contract. Dear Mr. Gutierrez: As agent for the Seller, the following shall constitute formal notice of the City's termination of the above referenced Contract, pursuant to Section 12 of the Contract, in that the City has determined that the Property is not acceptable to the City. Sincerely, 2is City Manager cc: Rickelle Williams, Assistant City Manager Alba Tarre, Depa rtm en t Director, Housing and Community Services Marcela Rubio, Assistant Department Director, Housing and Community Services Cristina Cabrera. CDBG Projects Coordinator prov s TO an.±±EE" co4le 7/'\4€.C j" a RESOLUTION NO. 2023-32662 A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, APPROVING AN "AS IS" RESIDENTIAL CO NTRACT FOR SALE AND PURCHASE BETWEEN THE CITY, AS BUYER, AND RRE PROYECT LLC, AS SELLER, FOR THE PURCHASE OF A CONDOMINIUM UNIT, LOCATED AT 8420 BYRON AVE, UNIT 5, MIAMI BEACH, FLORIDA, FOR THE TOTAL SALES PRICE NOT TO EXCEED $220,000.00 PLUS CLOSING COSTS, PAYABLE FROM COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) FUNDS; SAID PURCHASE BEING CONTINGENT UPON: (1) THE CITY MANAGER'S ACCEPTANCE OF INSPECTIONS IN ACCORDANCE WITH THE CONTRACT; (2) AN INDEPENDENT APPRAISAL REFLECTING AN APPRAISED MARKET VALUE FOR THE PROPERTY EQUAL TO OR GREATER THAN $190,000.00; (3) SATISFACTION OF HUD'S AREA MEDIAN PURCHASE AND MAXIMUM PER- UNIT SUBSIDY REQUIREMENTS; AND (4) RECEIPT OF FUNDING AUTHORIZATION FROM HUD; AND, FURTHER, AUTHORIZING THE CITY MANAGER TO TAKE ALL ACTIONS, AND NEGOTIATE AND EXECUTE ALL DOCUMENTS, WHICH MAY BE NECESSARY IN CONNECTION WITH THE PURCHASE, REHABILITATION, AND OPERATION OF THE PROPERTY AS AN AFFORDABLE HOUSING UNIT PURSUANT TO HUD GUIDELINES; AND, FURTHER, SHOULD THIS TRANSACTION FAIL TO CLOSE, AUTHORIZING THE CITY MANAGER TO NEGOTIATE AND EXECUTE A NEW "AS IS" CONTRACT FOR THE PURCHASE OF ANOTHER PROPERTY WITHIN THE CITY OF MIAMI BEACH BOUNDARIES FOR USE AS AFFORDABLE HOUSING FOR A TOTAL SUM NOT TO EXCEED $932,979.55; PROVIDED THAT THE NEW CONTRACT IS CONTINGENT UPON THE APPROVAL OF THE CITY COMMISSION AND IN THE FORM APPROVED BY THE CITY ATTORNEY. WHEREAS, the City's Comprehensive Plan, amended via Ordinance 2017-4147, established the goal of creating and maintaining 6,300 affordable housing units to serve low- and moderate-income and special needs households within its boundaries; and WHEREAS, the strengthening of the City's real estate market, coupled with the sharp reduction in housing funds from the state and federal governments, have severely curtailed the development growth the City experienced in 2000 - 2011; and WHEREAS, the City is a U.S. Department of Housing and Urban Development (HUD) and automatically qualifies for an annual allocation of federal funding under HUD's grant programs including the HOME Investment Partnership (HOME) Program and Community Development Block Grant (CDBG) funds; and WHEREAS, cities that receive entitlement funds from the CDBG program are required to use their funds in a timely manner; and WHEREAS, to determine whether entitlement grantees meet timely performance, HUD calculates the ratio of unexpended funds to the annual grant award 60 days prior to the end of the program year; and WHEREAS, as such, the City must spend $538,749.00 to meet the 1.5 ratio by July 27th to comply with HUD rules; and W H E R E A S , on June 22, 2022, the City Commission adopted Resolution 2022-32188 allocating a total of $636,183.67 in Community Development Block Grant (CDBG) funds for the acquisition of units to be added to the City's affordable housing portfolio; and WHEREAS, the completion of this acquisition activity will ensure the City will be in compliance with the CDBG timeliness requirements for the 2022 program year, while also adding additional units to the affordable housing portfolio; and WHEREAS, to maximize and leverage resources, in addition to the $636,183.67 in CDBG funds allocated via Resolution 2022-32188, the City Commission adopted Resolution 2023-32574 allocating a total of $296,795.88 in HOME funds for a total of $932,979.55 to increase affordable housing units and ensure timely and compliant expenditure of HUD funds; and WHEREAS, on April 28, 2023, the Mayor and City Commission adopted Resolution No. 2023-32574, approving the "As is" purchase contract to purchase a multifamily property at 971 79 Terrace, Miami Beach, FL; and WHEREAS, on May 11, 2023, the seller's agent advised that the seller accepted another offer that had more favorable terms for the seller; and WHEREAS, the Administration intended to utilize the funding to acquire a multi-family property; however, the options in the real estate market remain scarce based on the limited funding available, especially for multifamily properties; and WHEREAS, therefore, the Administration recommends the purchase of a condominium unit to rehabilitate and resell or rent to a low- to moderate-income household; and WHEREAS, this strategy would allow for the timely expenditure of CDBG funding, increase affordable housing, and make a turnkey unit available to an eligible homebuyer; and WHEREAS, the Office of Housing and Community Services (OHCS) has identified a unit and is currently conducting the due diligence process; and WHEREAS, the property is a 538 square foot condominium unit located at 8420 Byron Ave, Unit 5, Miami Beach, FL 33141 (Property); and WHEREAS, the scope of the project includes property acquisition, interior rehabilitation, tenant relocation for an existing tenant, and temporary holding costs (such as homeowner association fees and utilities) while the unit is being rehabilitated; and WHEREAS, once the rehabilitation is complete, the unit will be sold or rented to a low- to moderate-income homebuyer; and WHEREAS; although the unit is expected to appraise at the asking price, to be competitive, the Administration is recommending that the City be authority to offer to pay up to $30,000.00 above appraised value, not exceeding the asking price of $220,000.00; and WHEREAS, CDBG funds can also be used to temporarily manage the acquired Property until the Property is sold or while the Property is being rented; and WHEREAS, the Administration will have to follow the Uniform Relocation Assistance and Real Property Acquisition Policies Act (URA) requirements; and WHEREAS, typical closing costs for a purchase and sale transaction could total approximately three percent (3%) of the sales price ($6,600.00), which costs will be paid from previously appropriated funds; and WHEREAS, the cost associated with the URA requirements will be paid from previously appropriated funds; and WHEREAS, due to the nature of these funds, the Administration must complete an environmental review process, required for all HUD-assisted projects, to ensure that the proposed project does not negatively impact the surrounding environment and that the Property site itself will not have an adverse environmental or health effect on end users; and WHEREAS, the environmental review must be completed, with an approved request for release of funds from HUD, prior to closing; and WHEREAS, language delineating this requirement has been included in the purchase contract as a contingency; and WHEREAS, The Administration anticipates an estimated $80,000 for all costs tied to rehabilitation, URA requirements, and the temporary cost of managing the Property, including homeowner association fees and utilities; and WHEREAS, the purchase of the Property is a significant expenditure planned to contribute towards the achievement of the timely performance test; and WHEREAS, in order to preserve the opportunity to purchase the Property and ensure the timely expenditure of the CDBG funds, the City Attorney's Office form approved the "As Is" Sale and Purchase Agreement, for signature by the City Manager, contingent upon the Mayor and City Commission approving the contract; otherwise, the contract would automatically terminate and the City would be entitled to a refund of its deposit, in the amount of $1,000.00; and WHEREAS, based upon the foregoing, the City Manager recommends approving the signed contract, a copy of which is attached to the City Commission Memorandum accompanying this Resolution, authorizing the purchase of the Property; authorizing the subsequent rehabilitation of the Property; and further authorizing the City Manager to execute all required documents related to the purchase, rehabilitation, and operation of the Property; and WHEREAS, should this transaction fail to close, the Administration recommends authorizing the City Manager to negotiate and execute a new "As Is" purchase agreement for the purchase of another property within the City; provided that the new contract is contingent upon the approval of the City Commission and in the form approved by the City Attorney. NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, that the Mayor and City Commission hereby approve an "AS IS" Residential Contract for Sale and Purchase Between the City, as Buyer, and RRE Proyect LLC, as Seller, for the purchase of a condominium unit, located at 8420 Byron Ave, Unit 5, Miami Beach, Florida, for the total sales price not to exceed $220,000.00 plus closing costs, payable from Community Development Block Grant (CDBG) funds; said purchase being contingent upon: (1) the City Manager's acceptance of inspections in accordance with the contract; (2) an independent appraisal reflecting an appraised market value for the Property equal to or greater than $190,000.00; and (3) receipt of funding authorization from HUD; and, further, authorizing the City Manager to take all actions, and negotiate and execute all documents, which may be necessary in connection with the purchase, rehabilitation and operation of the Property as an affordable housing unit pursuant to HUD guidelines; and, further, should this transaction fail to close, authorize the City Manager to negotiate and execute a new "As Is" contract for the purchase of another property within the City of Miami Beach boundaries for use as affordable housing for a total sum not to exceed $932,979.55; provided that the new contract is contingent upon the approval of the City Commission and in the form approved by the City Attorney. PASSED AND ADOPTED the db_ cay or_JH- ,2023. ATTEST: 7 - 5 2023 Rafi E. Granado, City Clerk Dan Gelber, Mayor APPROVED AS TO FORM & LANGUAGE & FOR EXECUTION t2c t r» a tr a Resolutions-CZ AK MIAMIBEACH CO MMISSIO N MEMORA NDUM TO : Honora ble M ayor and Mem bers of the City Com mi ssi on FRO M : Alin a T. Hudak, City M an ager DATE: June 28, 2023 SUBJECT: A RESO LUTION O F TH E MAYOR AND CITY CO MM ISSION OF TH E CITY OF MIAM I BEACH, FLO RIDA , APPROV ING AN "A S IS" RESIDENTIA L CONTRA CT FO R SALE AND PURCHASE BETWE EN TH E CI TY, AS BUY ER, AN D RRE PR O YE CT LL C, AS SELLER, FOR THE PURCHA SE O F A CONDO M INIUM UNIT, LO CATED AT 8420 BYRON AVE, UNIT 5, MIAM I BEA CH, FLO RIDA, FO R TH E TO TAL SALES PRICE NOT TO EXCEED $220,000.00 PLU S CLO SING CO STS , PAYABLE FROM COM M UNITY DEVELOPM ENT BLOCK GRA NT (CDBG) FUN DS; SAID PURCHASE BE I NG CON TINGE NT UP ON : (1) TH E CITY MAN AGER'S ACCEPTANCE OF INSPECTIO NS IN A CCORDANCE W ITH THE CONTRA CT; (2) AN INDEPENDENT A PPRA ISAL REFLECTING AN APPRA ISED MARKET VALUE FO R THE PROP ER TY EQ UAL TO OR G RE ATE R TH AN $190,000.00; (3) SATISF A CTI ON OF HUD'S ARE A M EDI A N PURCHASE AND M AX IM UM PER-UNIT SUBSIDY REQ UIREMENTS; AND (4) RECEIPT O F FUNDING AUTHO RIZATIO N FROM HUD; AND, FURTHER, AUTHO RIZING THE CITY M AN A G ER TO TAKE AL L ACTI ONS, AN D NEGOTIATE AND EXE CUTE ALL DOCUM EN TS, W HICH MAY BE NECESSA RY IN CONNECTION W IT H THE PURCHASE, REHABILI TATION, AND O PERATION O F THE PROPERTY AS AN AFFO RDABLE HO USING UNIT PURSUANT TO HUD G UIDELI NES; AND, FURTHER, SHO ULD THIS TRA NSACTIO N FAIL TO CLOSE, AUTH O RI ZI NG TH E CIT Y MAN A GER TO NEG OTIATE AN D EXE CUTE A NEW "AS IS" CO NTRA CT FOR TH E P URCHASE O F ANO TH E R PROPERTY W ITH IN THE CITY OF MIAM I BE A CH BO UNDARI ES FOR US E AS AF FOR DAB LE HOUSIN G FOR A TOTAL SUM NOT TO EXCE ED $932,979.55; PROVIDED TH AT TH E NEW CONTR A CT IS CON TI NGENT UPON THE APPRO VAL, O F THE CITY COM M ISSION A ND IN TH E FORM APPROVED BY THE CITY ATT O RNEY. RECOM MENDATION The Adm inistration recom m ends appro ving the resolution. BACKGROUND/HISTORY The City of M iam i Beach (th e "City") C ompreh ensive Plan , am ended via Ordinan ce 2017-4147, establi she d the goal of creating an d m aintain ing 6,300 affordable housing units to serv e low- and modera te-inc om e and sp ecial needs households within its boundaries. W hile the City added 363 units to its affordable housing stock from 2000 - 2011, th e real estate mark et and the sharp reduction in housing funds from the state and federa l govern m ent curtailed this growt h. The City is a U.S. Departm ent of Housing an d Urban Development (HUD) designated entitlement city as determ ined by decennial census inform ation on population gro wth lag, overcrowding, age of housing stock, and poverty . As an entitlem ent city , Miami Beach autom atical ly qualifies fo r an annual alloca tion of federal funding under HUD's grant pro gram s, including the HO M E Investm ent Partnership (HO M E) Program and Com m unity Developm ent Block Grant (CDBG}. Ci ties that receive entitlem ent funds from the CDBG pro gram m ust use their funds in a timely manner. To determ ine whether entitlem ent grantees m eet tim ely performance, HUD calculates the ratio of unexpended fu nds to the annual grant award 60 days befo re the end of the program year. The City's next CD BG timel y perform ance test will be August 2, 2023. As such, the City must spend $538,749.00 to m eet the 1.5 ratio by July 27, 2023, to comply with HUD rules. Several active projects are spending CDBG funds. However, these are either small public serv ice projects or housing rehabilitation projects which m ove slowly. O n June 22, 2022, the City Comm ission adopted Resolution 2022-32188 allocating a total of $636,183.67 in Com m unity Developm ent Block G rant (CDBG) funds for the acquisition of units to be added to the City's affordable housing portfolio. Com pleting this acq uisition activity will ensure the City will comply with th e CDBG timel ine ss requirem ents for the 2022 program year while increasing affordable housing in the City. To m eet the tim ely perform ance test, the Adm inistration proposes that th e City close on a pro perty with sufficient time to complete the fisca l draw by July 27, 2023. The M ayor and City Com m ission authorized the purchase contract on Ap ril 28, 2023, via Resolution No. 2023-32574 to purchase a m ultifam ily pro perty at 971 79 Terrace, M iam i Beach, FL. Unfortunately, on May 11, 2023, the seller's agent advised that the seller accepted another offer that had more favorable term s for the seller. ANALYSIS To maximize and leverage resources, in addition to the $636, 183.67 in CD B G funds allocated via Resolution 2022-32188, the City Commission adopted Resolution 2023-32524 allocat ing a total of $296,795.88 in HOME funds for a total of $932,979.55 to increase affordable housing units and ensure timely and compliant expenditure of HUD funds. The Administration intended to utilize the funding to acquire a multi-family property. However, the options in the real estate market remain scarce based on the limited funding available, especially for multifamily properties. Based on the Affordable Housing Advisory Committee's recom men dation on June 20, 2023, the Administration recom mends the purchase of a condominium unit to rehabilitate and rent to a low- to moderate-income household. This strategy would allow for the timely expenditure of CDBG funding and increase affordable housing. The Office of Housing and Comm unity Services (OHCS) has identified a unit and is currently conducting the due diligence process. The property is a 538 SF condominium unit located at 8420 Byron Ave Unit 5, Miami Beach, FL 33141. The 40-year recertification for the building was completed on January 25, 2022. The scope of the project includes property acquisition, interior rehabilitation, tenant relocation, and temporary holding costs (such as monthly homeowner association fees of $332 and utilities estimated at $100) while the unit is being rehabilitated. On ce the reh abilitation is complete, the unit will be rented to a low- to moderate-income hom ebuyer. Although the unit is expected to appraise at the asking price of $220,000, to be competitive, the City will offer to pay up to $30,000.00 above appraised value, not exceeding the asking price. CDBG funds ca n also be used to temporarily manage the acquired property until the property is rented to a low- to moderate-income tenant. The Administration will have to follow the Uniform Relocation As sistance and Real Property Acquisition Policies Act (URA ) requirements. The URA provides important protections and assistance for people affected by acquiring, rehabilitating, or demolishing real property for federally-funded projects. Congress enacted this law to ensure that people whose real property is acquired or who move as a direct result of projects receiving federal funds are treated fairly and equitably and receive assistance in moving from the property they occupy. The Administration must complete an environmental review process required by HUD for all funded projects. The environmental review must be completed, with an approved request to release funds from HUD before closing, to ensure that the proposed project does not negatively impact the surrounding environment and that the prop erty site will not have an adverse environ mental or health effect on end users, such as future tenants. The purchase contract will include language delineating this requirement as a contingency. The Administration has begun the environ mental review procedure with the required 8-step process for activities in a floodplain. The Administration anticipates an estimated $80,000 for all costs associated with rehabilitation, URA requirements, and the temporary cost of managing the unit, including homeowner association fees and utilities. In order to preserve the opportunity to purchase the Property and ensure the timely expenditure of the CDBG funds, the City Attorney's Office form approved the "As ls" Sale and Purchase Agreem ent, for signature by the City Manager, contingent upon the Mayor and City Commission approving the contract; otherw ise, the contract would automatically terminate and the City would be entitled to a refund of its deposit, in the amount of $1,000.00. Should this transaction fail to close, the Administration recom men ds authorizing the City Man ager to negotiate and execute a new "As Is" purchase agreement for the purchase of another property within the City; provided that the new contract- is contingent upon the approval of the City Commission and in the form approved by the City Attorney. SUPPORTING SURVEY DATA Th e Mayor and City Commission iden tified the need for workforce and affordable housing as a key objective in the City's 2019 Strategic Plan Through the Lens of Resilience. The City's 2040 Comprehensive Plan prioritizes affordable housing, with the express goal "to encourage redevelopm ent that provides workforce and affordable housing" within the City." FINANCIAL INFORMATION Expenditures are tied to federal CDBG funds and will not impact the general fund. CONCLUSION The property purchase is a significant expenditure planned to contribute towards achieving the CDBG timely perform ance test. Thus, the Administration recommends approval and authorization of the purchase and rehabilitation of the property and authorizing the City Manager to execute all required documents. If the sale is unsuccessful, the Administration recommends authorizing the City Manager to negotiate and execute a purchase agreement and other purchase contract documents for another property within the City. Applicable Area North Beach ls_this a "Residents Right to Know"_item, _pursuant to City Code Section 2-142 No Does this item utilize G.O. Bond Funds? No Strategic Connection Mobility - Support affordable, compatible workforce housing. Legislative Tracking Housing and Community Services ATTACHMENTS; Description Resolution Purchase contract 1° 2° 3 4 5 6 7- 8° 9 10 11 12 13 14 15 16 17 18 19 20 21 22 "A S IS" Residential Contract For Sale And Purchase THIS FORM HAS BEEN APPROVED BY THE FLORIDA REAL TORS AND THE FLORIDA BAR PARTIES: RREPRQYECTLLC ("Seller"), and lTYQF_MIAMBEACH, FLORIDA ("Buyer"), agree that Seller shall sell and Buyer shall buy the following described Real Property and Personal Property (collectively "Property") pursuant to the terms and conditions of this AS IS Residential Contract For Sale And Purchase and any riders and addenda ("Contract"): 1. PROPERTY DESCRIPTION: a) sveet as@ress, ay.: 8a Pyron "en. US.Mami@each.f33161 (b) Located in: Miami-Dade county. Florida. Property Tax ID #.2-d202-011-00? (c) Real Property: The legal description is- Unit No. 5 OF SUNDIAL CONDOMINIUM according to the Declaration of Restrictions, Reservations, Covenants, Conditions and Easements recorded in OR Book 4420, at Page 592,Miami-Dade together with all existing improvements and fixtures, including built-in appliances, built-in furnishings and attached wall-to-wall carpeting and flooring ("Real Property") unless specifically excluded in Paragraph 1 (e) or by other terms of this Contract. (d) Personal Property: Unless excluded in Paragraph 1 (e) or by other terms of this Contract, the following items which are owned by Seller and existing on the Property as of the date of the initial offer are included in the purchase: range(s)/oven(s), refrigerator(s), dishwasher(s), disposal, ceiling fan(s), light fixture(s), drapery rods and draperies, blinds, window treatments, smoke detector(s), garage door opener(s), thermostat(s), doorbell(s), television wall mount(s) and television mounting hardware, security gate and other access devices, mailbox keys, and storm shutters/storm protection items and hardware ("Personal Property"). Other Personal Property items included in this purchase are: _ 23 Personal Property is included in the Purchase Price. has no contributory value, and shall be left for the Buyer. 24 (e) The following items are excluded from the purchase. 25 26° 27' 28° 29 30° 31 32 3 3 ° 34 ° 35 ° 36 37° 38 39 ° 40° 41 42 43 44 45 46 47 48 49 50 51 52 PURCHASE PRICE AND CLOSING 220,000.00 (a) Initial deposit to be held in escrow in the amount of (checks subject to Collection)... $ 10000 The initial deposit made payable and delivered to "Escrow Agent" named below (CHECK ONE): (@) [] accompanies offer or (ii) [z]is to be made within _? (if left blank, then 3) days after Effective Date. IF NEITHER BOX IS CHECKED, THEN OPTION (ii) SHALL BE DEEMED SELECTED. Escrow Agent Name:_. Suzanne A. Dockerty, P.A. Address: 110Merrick Way, Site 3-B, Coral Gables, FL 33134 Pone 305-443.9162520 E-mail: sdoky@)7ht2law.Cm Fax. -------- (b) Additional deposit to be delivered to Escrow Agent within (if left blank, then 10) days after Effective Date . .. . .. . .. . . . $ _ (All deposits paid or agreed to be paid, are collectively referred to as the "Deposit") (c) Financing. Express as a dollar amount or percentage ("Loan Amount") see Paragraph 8 _ (d) Other: $ _ (e) Balance to close (not including Buyer's closing costs, prepaids and prorations) by wlr.e transfer or other Collected funds (see STANDARD S)......................................................$ 219000._Q0 3. TIME FOR ACCEPTANCE OF OFFER AND COUNTER-OFFERS; EFFECTIVE DATE: (a) If not signed by Buyer and Seller, and an executed copy delivered to all parties on or before June 14_2023 ,this offer shall be deemed withdrawn and the Deposit, if any,_shall be returned to Buyer. Unless otherwise slated, time far acceptance of any counter-offers shall be within 2 days after the day the counter-offer is delivered. (b) The effective date of this Contract shall be the date when the last one of the Buyer and Seller has signed or initialed and delivered this offer or final counter-offer ("Effective Date"). 4. CLOSING; CLOSING DATE: The closing of this transaction shall occur when all funds required for closing are received by Closing Agent and Collected pursuant to STANDARD S and all closing documents required to be furnished by each party pursuant to this Contract are delivered ("Closing"). Unless modified by other provisions of 2. PURCHASE PRICE (U.S. currency): . $ Bu yer's Initial s • Pag e 1gt12 Seller's initials Fo rid aR ealtor s/Fl o rd aar -A S IS -6 R ev 1/21 ) 2021 Fl or id a R eal tor s and The Flo rida 8ar. Al ghts reserv ed. Set\al; 085984.000167.9519445 :Form EE3 Simplicity 53° 54 55 56 57 SB 59 60 61 62 63 64 65 66 67 68 69 70 71 72° 73 74 75 76 77 78 79 80 81 82 83 84 85 86 87 88° 89° 90° g 92 93 94 95 g6 97- 98 99 100 101 102 103 104 105 106 107 108 this Contract, the Closing shall occur on July 26 2023 ("Closing Date"), at the time established by the Closing Agent. 5. EXTENSION OF CLOSING DATE: (a) In the event Closing funds from Buyer's lender(s) are not available on Closing Date due to Consumer Financial Protection Bureau Closing Disclosure delivery requirements ("CFPB Requirements"), if Paragraph 8(b) is checked, Loan Approval has been obtained, and lender's underwriting is complete, then Closing Date shall be extended for such period necessary to satisfy CFPB Requirements, provided such period shall not exceed 7 days. (b) If an event constituting "Force Majeure" causes services essential for Closing to be unavailable. including the unavailability of utilities or issuance of hazard, wind, flood or homeowners' insurance, Closing Date shall be extended as provided in STANDARD G. 6. OCCUPANCY AND POSSESSION: (a} Unless Paragraph 6(b) is checked, Seller shall, at Closing, deliver occupancy and possession of the Property to Buyer free of tenants, occupants and future tenancies. Also, at Closing, Seller shall have removed all personal items and trash from the Property and shall deliver all keys. garage door openers, access devices and codes, as applicable, to Buyer. If occupancy is to be delivered before Closing, Buyer assumes all risks of loss to the Property from date of occupancy, shall be responsible and liable for maintenance from that dale, and shall have accepted the Property in its existing condition as of time of taking occupancy, see Rider T PRE- CLOSING OCCUPANCY BY BUYER. (b) [@] CHECK IF PROPERTY IS SUBJECT TO LEASE(S) OR OCCUPANCY AFTER CLOSING. If Property is subject to a lease(s) or any occupancy agreements (including seasonal and short-term vacation rentals) after Closing or is intended to be rented or occupied by third parties beyond Closing, the facts and terms thereof shall be disclosed in writing by Seller .to Buyer and copies of the written lease(s) shall be delivered to Buyer. all within 5 days after Effective Date. If Buyer determines, in Buyer's sole discretion, that the lease(s) or terms of occupancy are not acceptable to Buyer, Buyer may terminate this Contract by delivery of written notice of such election to Seller within 5 days after receipt of the above items from Seller, and Buyer shall be refunded the Deposit thereby releasing Buyer and Seller from all further obligations under this Contract. Estoppel Letter(s) and Seller's affidavit shall be provided pursuant to STANDARD D, except that tenant Estoppel Letters shall not be required on seasonal or short-term vacation rentals. ff Property is intended to be occupied by Seller after Closing, see Rider U POST-CLOSING OCCUPANCY BY SELLER. 7. ASSIGNABILITY: (CHECK ONE): Buyer []may assign and thereby be released from any further liability under this Contract; [] may assign but not be released from liability under this Contract; or D] may not assign this Contract. IF NO BOX IS CHECKED, THEN BUYER MAY NOT ASSIGN THIS CONTRACT. FINANCING Er(al This is a cash transaction with no financing contingency, but subject to the Additional Terms. 8. 'ANCING: (b} This Contract is contingent upon, within _ (if left blank, then 30) days after Effective Date ("Loan Approval Period"):. (1) Buyer obtaining approval of a Oconventional O FHA O VA or O other_ (describe) mortgage loan for purchase of the Property for a (CHECK ONE): [] fixed, []adjustable, [fixed or adjustable rate in the Loan Amount (See Paragraph 2(c)), at an initial interest rate not to exceed_, % (if left bl~nk, then prevailing rate based upon Buyer's creditworthiness), and for a term of, (if left Blank, then 30) years ("Financing"), and (2) Buyer's mortgage broker or lender having received an appraisal or alternative valuation of the Pr~perty satisfactory to lerider, if either is required by lender, which is sufficient to meet the terms required for lender to provide Financing for Buyer and proceed to Closing ("Appraisal"). (i) Buyer shall make application for Financing within (if left blank, then 5) days after Effective Date and use good faith and diligent effort to obtain approval of a loan meeting the Financing and Appraisal terms of Paragraph 8(b)(1) and (2), above, ("Loan Approval") within the Loan Approval Period and, thereafter, to close this Contract. loan Approval which requires Buyer lo sell other real properly shall not be considered Loan Approval unless Rider Vis attached. Buyer's failure to use good faith and diligent effort to obtain Loan Approval during the Loan Approval Period shall be considered a default under the terms of this Contract. For purposes of this provision, "diligent effort" includes, but is not limited to, timely furnishing all documents and information required by Buyer's mortgage broker and lender and paying for Appraisal and other fees and charges in connection with Buyer's application for Financing. (ii) Buyer shall, upon written request, keep Seller and Broker fully informed about the status of Buyer's mortgage loan application, loan processing, appraisal, and Loan Approval, including any Property related conditions of loan Approval. Buyer authorizes Buyer's mortgage broker, lender. and Closing Agent to disclose such status buyer's Initials _ Page 2of 12 Seller's Initials FloridaRealtors/Florida8ar-ASIS.6 Rev,10/21 @) 2021 Florida Realtors" and The Florida 8ar. All nights reserved. Ser'al#; 085984.000167.9519445 EL Form Ej simplicity 1 0 9 1 1 0 +1 1 1 1 2 1 1 3 1 1 4 1 1 5 1 1 6 1 1 7 1 1 8 1 1 9 1 2 0 1 2 1 1 2 2 1 2 3 1 2 4 1 2 5 1 2 6 1 2 7 1 2 8 1 2 9 13 0 1 3 1 1 3 2' 1 3 3° 1 3 4 1 3 5 9. 136 137 138 139 140 141 142 143 144 145 146 147 148 149 150 151 152 153 154 155 156 157 158 159 160 161 162 163 164 and progress and release preliminary and finally executed closing disclosures and settlement statements, as appropriate and allowed, to Seller and Broker. (iii) If within the Loan Approval Period, Buyer obtains Loan Approval, Buyer shall notify Seller of same in writing prior to expiration of the Loan Approval Period; or, if Buyer is unable to obtain Loan Approval within Loan Approval Period but Buyer is satisfied with Buyer's ability to obtain Loan Approval and proceed to Closing, Buyer shall deliver written notice to Seller confirming same, prior to the expiration of the Loan Approval Period. (iv) If Buyer is unable to obtain Loan Approval within the Loan Approval Period, or cannot timely meet the terms of Loan Approval, all after the exercise of good faith and diligent effort, Buyer may terminate this Contract by delivering written notice of termination to Seller prior to expiration of the Loan Approval Period; whereupon, provided Buyer is not in default under the terms of this Contract, Buyer shall be refunded the Deposit thereby releasing Buyer and Seller from all further obligations under this Contract. (v) If Buyer fails to timely deliver any written notice provided for in Paragraph 8(b)(iii) or (iv), above, to Seller prior to expiration of the Loan Approval Period, then Buyer shall proceed forward with this Contract as though Paragraph 8(a), above, had been checked as of the Effective Date; provided, however, Seller may elect to terminate this Contract by delivering written notice of termination to Buyer within 3 days after expiration of the Loan Approval Period and, provided Buyer is not in default under the terms of this Contract, Buyer shall be refunded the Deposit thereby releasing Buyer and Seller from all further obligations under this Contract. (vi) If Buyer has timely provided either written notice provided for in Paragraph 8b(iii), above, and Buyer thereafter fails to close this Contract, the Deposit shall be paid to Seller unless failure to close is due to: (1) Seller's default or inability to satisfy other contingencies of this Contract; or (2) Property related conditions of the Loan Approval (specifically excluding the Appraisal valuation) have not been met unless such conditions are waived by other provisions of this Contract; in which event(s) the Buyer shall be refunded the Deposit, thereby releasing Buyer and Seller from all further obligations under this Contract. D (c) Assumption of existing mortgage (see Rider D for terms). O{d) Purchase money note and mortgage to Seller (see Rider C for terms). CLOSING COSTS, FEES AND CHARGES CLOSING COSTS; TITLE INSURANCE; SURVEY; HOME WARRANTY; SPECIAL ASSESSMENTS: (a) COSTS TO BE PAID BY SELLER: • Documentary stamp taxes and surtax on deed, if any • Owner's Policy and Charges (if Paragraph 9(c)(i) is checked) • Title search charges (if Paragraph 9(c)(iii) is checked) • Municipal lien search (if Paragraph 9(c)(i) or (iii) is checked) • Charges for FIRPT A withholding and reporting If, prior to Closing, Seller is unable to meet the AS IS Maintenance Requirement as required by Paragraph 11 a sum equal to 125% of estimated costs to meet the AS IS Maintenance Requirement shall be escrowed at Closing. If actual costs to meet the AS IS Maintenance Requirement exceed escrowed amount. Seller shall pay such actual costs. Any unused portion of escrowed amount(s) shall be returned to Seller. (b) COSTS TO BE PAID BY BUYER: • Taxes and recording fees on notes and mortgages • Recording fees for deed and financing statements • Owner's Policy and Charges (if Paragraph 9(c)(ii) is checked) • Survey (and elevation certification, if required) • Lender's title policy and endorsements • HOA/Condominium Association application/transfer fees • Municipal lien search (if Paragraph 9(c)(ii) is checked) • Other: _ (c) TITLE EVIDENCE AND INSURANCE: At least (i f left blank, then 15, or if Paragraph 8(a) is checked, then 5) days prior to Closing Date ("Title Evidence Deadline"), a title insurance commitment issued by a Florida licensed title insurer, with legible copies of instruments listed as exceptions attached thereto ("Title Commitment") and, after Closing, an owner's policy of title insurance (see STANDARD A for terms) shall be obtained and delivered to Buyer. If Seller has an owner's policy of title insurance covering the Real Property, Seller shall furnish a copy to Buyer and Closing Agent within 5 days after Effective Date. The owner's title policy premium, title search and closing services (collectively, "Owner's Policy and Charges") shal l be paid, as set forth below. The title insurance premium charges for the owner's policy and any lender's policy will be calculated and allocated in accordance with Florida law, but may be reported differently on certain federally mandated closing disclosures and other closing documents. For purposes of this Contract "municipal lien search" means a • H0NCondominium Association estoppal fees • Recording and other fees needed to cure title • Seller's attorneys' fees • Other: --------------- • Loan expenses • Appraisal fees • Buyer's Inspections • Buyer's attorneys' fees • All property related insurance • Owner's Policy Premium (if Paragraph 9 (c)(iii) is checked.) Buyer's Initials Page 30f 12 Seller's Initials FloridaRealtors/FloridaBar-ASIS-6 Rev,10/21 2021 Florida Realtors' and The Florida Bar. All rights reserved. Senal # 085984 0 00167.951944 5 e+ Form lsitity 165 search of records necessary for the owner's policy of title insurance to be issued without exception for unrecorded 166 liens imposed pursuant to Chapters 153, 159 or 170, F.S., in favor of any governmental body, authority or agency. 67 (CHECK ONE): 1ss: [](i) Seller shall designate Closing Agent and pay for Owner's Policy and Charges, and Buyer shall pay the ·69 premium for Buyer's lender's policy and charges for closing services related to the lender's policy, ·70 endorsements and loan closing, which amounts shall be paid by Buyer to Closing Agent or such other 71 provider(s) as Buyer may select; or 72° [](ii) Buyer shall designate Closing Agent and pay for Owner's Policy and Charges and charges for closing 173 Services related to Buyer's lender's policy, endorsements and loan closing; or 17« [@} (iii) [MIAMI-DADE/BROWARD REGIONAL PROVISION]: Buyer shall designate Closing Agent. Seller shall 17s furnish a copy of a prior owner's policy of title insurance or other evidence of title and pay fees for: (A) a 115 continuation or update of such title evidence, which is acceptable to Buyer's title insurance underwriter for ,n reissue of coverage; () tax search; and (C) municipal lien search. Buyer shall obtain and pay for post-Closing 7e continuation and premium for Buyer's owner's policy, and if applicable, Buyer's lender's policy. Seller shall not 1s be obligated to pay more than $350.00 (it left blank, then $200.00) for abstract continuation or title 1so search ordered or performed by Closing Agent 81 (d) SURVEY: At least 5 days prior to Closing Date, Buyer may, at Buyer's expense, have the Real Property 182 surveyed and certified by a registered Florida surveyor ("Survey"). If Seller has a survey covering the Real 183 Property, a copy shall be furnished to Buyer and Closing Agent within 5 days after Effective Date. 1s+ (e) HOME WARRANTY: At Closing.[} Buyer []Seller []NIA shall pay for a home warranty plan issued by 185° ala Cost not [O exceed b.home 186 warranty plan provides for repair or replacement of many of a home's mechanical systems and major built-in 187 appliances in the event of breakdown due to normal wear and tear during the agreement's warranty period. 1ea (f) SPECIAL ASSESSMENTS: At Closing. Seller shall pay: (i) the full amount of liens imposed by a public body 189 ("pubiic body" does not include a Condominium or Homeowner's Association) that are certified, confirmed and so ratified before Closing: and (ii) the amount of the public body's most recent estimate or assessment for an 191 improvement which is substantially complete as of Effective Date. but that has not resulted in a. lien being 192 imposed ori the Property before Closing. Buyer shall pay all other assessments. If special assessments may 193 be paid in installments (CHECK ONE): gw [](a) Seller shall pay installments due prior to Closing and Buyer shall pay installments due after Closing. 19s Installments prepaid or due for the year of Closing shall be prorated. 1gs [g](b) Seller shall pay, in full, prior to or at the time of Closing, any assessment(s) allowed by the public body 191 to be prepaid. For any assessment(s) which the public body does not allow prepayment. OPTION {a) shall be 198 deemed selected for such assessment(s). as IF NEITHER BOX IS CHECKED, THEN OPTION (a) SHALL BE DEEMED SELECTED. 200 This Paragraph 9(f) shall not apply to a special benefit tax lien imposed by a community development district 201 (COD) pursuant to Chapter 190, F.S., or special assessment(s) imposed by a special district pursuant to 202 Chapter 189, F.S., which lien(s) or assessment(s) shall be prorated pursuant to STANDARD K. 203 DISCLOSURES 204 10. DISCLOSURES: 205 (a) RADON GAS: Radon is a naturally occurring radioactive gas that, when it is accumulated in a building in 206 sufficient quantities, may present health risks to persons who are exposed to it over time. Levels of radon that 207 exceed federal and state guidelines have been found in buildings in Florida. Additional information regarding 208 radon and radon testing may be obtained from your county health department. 209 (b) PERMITS DISCLOSURE: Except as may have been disclosed by Seller to Buyer in a written disclosure, Seller 210 does not know of any improvements made to the Property which were made without required permits or made 211 pursuant to permits which have not been properly closed or otherwise disposed of pursuant to Section 553. 79, 212 F.S. If Seller identifies permits which have not been closed or improvements which were not permitted. then 213 Seller shall promptly deliver to Buyer all plans, written documentation or other information in Seller's possession. 214 knowledge, or control relating to improvements to the Property which are the subject of such open permits or 215 unpermitted improvements. 216 (c) MOLD: Mold is naturally occurring and may cause health risks or damage to property. If Buyer is concemed or 217 desires additional information regarding mold, Buyer should contact an appropriate professional. 21a (d) FLOOD ZONE; ELEVATION CERTIFICATION: Buyer is advised to verify by elevation certificate which flood 219 zone the Property is in, whether flood insurance is required by Buyer's lender, and what restrictions apply to 220 improving the Property and rebuilding in the event of casualty. If Property is in a '.'Special Flood Hazard Area" Buyer's Initials Page 4 0t12 Seller's initials FtoridaRealtors/Florida8ar-ASIS-6 Rev 10/21 @ 2021 Florida Realtors and The Florida Bar. AI rights reserved. Seraln; 085984.000167.9519445 B Form E simplicity 2 2 1 2 2 2 223 224 225° 226 227 228 229 230 231 232 233 234 235 236 237 238 239 240 241 242 243 244 245 246 247 248 249 250 251 252 253 254 255 256 257 258 259 260 261° 262 263 284 265 266 267 268 269 270 271 272 273 274 or "Coastal Barrier Resources Act" designated area or otherwise protected area identified by the U.S. Fish and Wildlife Service under the Coastal Barrier Resources Act and the lowest floor elevation for the building(s) and/or flood insurance rating purposes is below minimum flood elevation or is ineligible for flood insurance coverage through the National Flood Insurance Program or private flood insurance as defined in 42 U.S.C. §4012a, Buyer may terminate this Contract by delivering written notice to Seller within dU (if left blank, then 20) days after Effective Date. and Buyer shall be refunded the Deposit thereby releasing Buyer and Seller from all further obligations under this Contract, failing which Buyer accepts existing elevation of buildings and flood zone designation of Property. (e) ENERGY BROCHURE: Buyer acknowledges receipt of Florida Energy-Efficiency Rating Information Brochure required by Section 553.996, F.S. (f) LEAD-BASED PAINT: If Property includes pre-1978 residential housing, a lead-based paint disclosure is mandatory. (g) HOMEOWNERS' ASSOCIATION/COMMUNITY DISCLOSURE: BUYER SHOULD NOT EXECUTE THIS CONTRA CT UNTIL BUYER HAS RECEIVED AND READ THE HOMEOWNERS' ASSOCIATION/COMMUNITY DISCLOSURE, IF APPLICABLE. (h) PROPERTY TAX DISCLOSURE SUMMARY: BUYER SHOULD NOT RELY ON THE SELLER'S CURRENT PROPERTY TAXES AS THE AMOUNT OF PROPERTY TAXES THAT THE BUYER MAY BE OBLIGATED TO PAY IN THE YEAR SUBSEQUENT TO PURCHASE. A CHANGE OF OWNERSHIP OR PROPERTY IMPROVEMENTS TRIGGERS REASSESSMENTS OF THE PROPERTY THAT COULD RESULT IN HIGHER PROPERTY TAXES. IF YOU HAVE ANY QUESTIONS CONCERNING VALUATION, CONTACT THE COUNTY PROPERTY APPRAISER'S OFFICE FOR INFORMATION. (I) FOREIGN INV ESTM ENT IN REAL PROPERTY TAX ACT ("FIRPTA"): Seller sh all inform Buyer in writing if Seller is a "foreign person" as defined by the Foreign Investment in Real Property Tax Act ("FIRPTA"). Buyer and Seller shall comply with FIRPTA, which may require Seller to provide additional cash at Closing. If Seller is not a "foreign person", Seller can provide Buyer, at or prior to Closing, a certification of non-foreign status, under penalties of perjury, to inform Buyer and Closing Agent that no withholding is required. See STANDARD V for further information pertaining to FIRPTA. Buyer and Seller are advised to seek legal counsel and tax advice regarding their respective rights, obligations, reporting and withholding requirements pursuant to FIRPTA. U) SELLER DISCLOSURE: Seller knows of no facts materially affecting the value of the Real Property which are not readily observable and which have not been disclosed to Buyer. Except as provided for in the preceding sentence, Seller extends and intends no warranty and makes no representation of any type, either express or implied, as to the physical condition or history of the Property. Except as otherwise disclosed in writing Seller has received no written or verbal notice from any governmental entity or agency as to a currently uncorrected building, environmental or safety code violation. PROPERTY MAINTE NANCE, CONDITION, INS PECTION S AN D EXAMINATIONS 11. PROPERTY MAINTENANCE: Except for ordinary wear and tear and Casualty Loss, Seller shall maintain the Property, including, but not limited to, lawn, shrubbery, and pool, in the condition existing as of Effective Date ("AS IS Maintenance Requirement"). See Paragraph 9(a) for escrow procedures, if applicable. 12. PROPERTY INSPE CTION; RIGHT TO CAN CEL: until (a) PROPERTY INSPECTIONS AND RIGHT TO CANCEL: Buyer shall have Z-10-23(if left blank, then 15) days after Effective Date ("Inspection Period") within which to have such inspections of the Property performed as Buyer shall desire during the Inspection Period. If Buyer determines, in Buyer's sole discretion, that the Property is not acceptable to Buyer, Buyer may terminate this Contract by delivering written notice of such election to Seifer prior to expiration of Inspection Period. If Buyer timely terminates this Contract, the Deposit paid shall be returned to Buyer, thereupon, Buyer and Seller shall be released of all further obligations under this Contract; however, Buyer shall be responsible for prompt payment for such inspections, for repair of damage to, and restoration of, the Property resulting from such inspections, and shall provide Seller with paid receipts for all work done on the Property (the preceding provision shall survive termination of this Contract). Unless Buyer exercises the right to terminate granted herein, Buyer accepts the physical condition of the Property and any violation of governmental, building, environmental, and safety codes, restrictions, or requirements, but subject to Seller's continuing AS IS Maintenance Requirement, and Buyer shall be responsible for any and all repairs and improvements required by Buyer's lender. B uyer's Initi als _ Page 5 0 f12 S el ler's Initial s Flortd aR ealtor s /Flor id a B ar-A SI S -6 R ev.10 /21 @ 20 2 1 Fl orid a R ealtor s ' and Th e Fl orida B ar. All tigh ts reserv ed. Ser8l; 085984-000167.951944 5 #\Form E simplicity 27s (b) WALK-THROUGH INSPECTION/RE-INSPECTION: On the day prior to Closing Date, or on Closing Date prior 276 to time of Closing, as specified by Buyer, Buyer or Buyer's representative may perform a walk-through (and 277 follow-up walk-through, if necessary) inspection of the Property solely to confirm that all items of Personal 278 Property are on the Property and to verify that Seller has maintained the Property as required by the AS IS 279 Maintenance Requirement and has met all other contractual obligations. 280 (c) SELLER ASSISTANCE AND COOPERATION IN CLOSE-OUT OF BUILDING PERMITS: If Buyer's inspection 281 of the Property identifies open or needed building permits, then Seller shall promptly deliver to Buyer all plans, 282 written documentation or other information in Seller's possession, knowledge, or control relating to 283 improvements to the Property which are the subject of such open or needed permits, and shall promptly 284 cooperate in good faith with Buyer's efforts to obtain estimates of repairs or other work necessary to resolve 2ss such permit issues. Seller's obligation to cooperate shall include Seller's execution of necessary authorizations, 286 consents, or other documents necessary for Buyer to conduct inspections and have estimates of such repairs 287 Or work prepared, but in fulfilling such obligation, Seller shall not be required to expend, or become obligated to 288 expend, any money. 289 (d) ASSIGNMENT OF REPAIR AND TREATMENT CONTRACTS AND WARRANTIES: At Buyer's option and 290 cost, Seller will, at Closing, assign all assignable repair. treatment and maintenance contracts and warranties 291 to Buyer. 292 ESCROW AGENT AND BROKER 293 13. ESCROW AGENT: Any Closing Agent or Escrow Agent (collectively "Agent") receiving the Deposit, other funds 294 and other items is authorized, and agrees by acceptance of them, to deposit them promptly, hold same in escrow 29s within the State of Florida and, subject to Collection, disburse them in accordance with terms and conditions of 296 this Contract. Failure of funds to become Collected shall not excuse Buyer's performance. When conflicting 297 demands for the Deposit are received, or Agent has a good faith doubt as to entitlement to the Deposit, Agent may 29 8 take such actions permitted by this Paragraph 13, as Agent deems advisable. If in doubt as to Agent's duties or 299 liabilities under this Contract, Agent may, at Agent's option, continue to hold the subject matter of the escrow until 300 the parties agree to its disbursement or until a final judgment of a court of competent jurisdiction shall determine 301 the rights of the parties, or Agent may deposit same with the clerk of the circuit court having jurisdiction of the 302 dispute. An attorney who represents a party and also acts as Agent may represent such party in such action. Upon 303 notifying all parties concerned of such action. all liability on the part of Agent shall fully terminate, except to the 304 extent of accounting for any items previously delivered out of escrow. If a licensed real estate broker. Agent will 30s comply with provisions of Chapter 475, F.S., as amended and FREC rules to timely resolve escrow disputes through 306 mediation, arbitration, interpleader or an escrow disbursement order. 3oz In any proceeding between Buyer and Seller wherein Agent is made a party because of acting as Agent hereunder, 308 or in any proceeding where Agent interpleads the subject matter of the escrow, Agent shall recover reasonable 309 attorney's fees and costs incurred, to be paid pursuant to court order out of the escrowed funds or equivalent. Agent 310 shall not be liable to any party or person for mis-delivery of any escrowed items, unless such mis-delivery is due to 311 Agent's willful breach of this Contract or Agent's gross negligence. This Paragraph 13 shal l survive Closing or 312 termination of this Contract. 313 14. PROFESSIONAL ADVICE; BROKER LIABILITY: Broker advises Buyer and Seller to verify Property condition. 314 square footage, and all other facts and representations made pursuant to this Contract and to consult appropriate 3s professionals for legal, tax, environmental, and other specialized advice concerning matters affecting the Property 316 and the transaction contemplated by this Contract. Broker represents to Buyer that Broker does not reside on the 317 Property and that all representations (oral, written or otherwise) by Broker are based on Seller representations or 318 public records. BUYER AGREES TO RELY SOLELY ON SELLER, PROFESSIONAL INSPECTORS AND 319 GOVERNMENTAL AGENCIES FOR VERIFICATION OF PROPERTY CONDITION, SQUARE FOOTAGE AND 320 FACTS THAT MATERIALLY AFFECT PROPERTY VALUE AND NOT ON THE REPRESENTATIONS (ORAL, 321 WRITTEN OR OTHERWISE} OF BROKER. Buyer and Seller (individually, the "Indemnifying Party") each 322 individually indemnifies, holds harmless, and releases Broker and Broker's officers, directors, agents and 323 employees from all liability for loss or damage, including all costs and expenses, and reasonable attorney's fees at 324 all levels, suffered or incurred by Broker and Broker's officers, directors, agents and employees in connection with 325 Or arising from claims, demands or causes of action instituted by Buyer or Seller based on: (i) inaccuracy of 326 information provided by the Indemnifying Party or from public records; (ii) Indemnifying Party's misstatement(s) or 327 failure to perform contractual obligations; (iii) Broker's performance, at Indemnifying Party's request, of any task 328 beyond the scope of services regulated by Chapter 475, F.S., as amended, including Broker's referral. 329 recommendation or retention of any vendor for, or on behalf of, Indemnifying Party; (iv) products or services 330 provided by any such vendor for. or on behalf of, Indemnifying Party; and (v) expenses incurred by any such vendor. Buyer's Initials Page 6 of 12 Seller's Initials FloridaR ealtors/FloridaBar-ASIS-6 Rev 10/21 € 2021 Florida Realtors" and Th e Florida 8ar. All rights reserved. Serial; 085984000167.9519445 Ba Form Eel simplicity 331 332 333 334 335 336 337 338 339 340 341 342 343 344 345 346 347 348 349 350 351 352 353 354 355 355 357 358 359 360 361 362 363 364 365 366 367 368 369 370 371 372 373 374 375 376 377 378 379 380 381 382 383 384 385 Buyer and Setler each assumes full responsibility for selecting and compensating their respective vendors and paying their other costs under this Contract whether or not this transaction closes. This Paragraph 14 will not relieve Broker of statutory obligations under Chapter 475, F.S .. as amended. For purposes of this Paragraph 14, Broker will be treated as a party to this Contract. This Paragraph 14 shall survive Closing or termination of this Contract. DEFAULT AND DISPUTE RESOLUTION 15. DEFAULT: (a) BUYER DEFAULT: If Buyer fails, neglects or refuses to perform Buyer's obligations under this Contract, including payment of the Deposit, within the time(s) specified, Seller may elect to recover and retain the Deposit for the account of Seller as agreed upon liquidated damages, consideration for execution of this Contract. and in full settlement of any claims, whereupon Buyer arid Seller shall be relieved from all further obligations under this Contract, er Seller, at Seller's option, may, pursuant ta Paragraph16, proceed in equity to enforce Seller's rights under this Gentrst The portion of the Deposit, if any, paid to Listing Broker upon default by Buyer, shall be split equally between Listing Broker and Cooperating Broker; provided however, Cooperating Broker's share shall not be greater than the commission amount Listing Broker had agreed to pay to Cooperating Broker. (b) SELLER DEFAULT: If for any reason other than failure of Seller to make Seller's title marketable after reasonable diligent effort. Seller fails, neglects or refuses to perform Seller's obligations under this Contract, Buyer may elect to receive return of Buyer's Deposit without thereby waiving any action for damages resulting from Seller's breach, and, pursuant to Paragraph 16, may seek to recover such damages or seek specific performance. This Paragraph 15 shall survive Closing or termination of this Contract. 16. DISPUTE RESOLUTION: Unresolved controversies, claims and other matters in question between Buyer and Seller arising out of, or relating to, this Contract or its breach. enforcement or interpretation ("Dispute") will be settled as follows: (a) Buyer and Seller will have 10 days after the date conflicting demands for the Deposit are made to attempt to resolve such Dispute, failing which, Buyer and Seller shall submit such Dispute to mediation under Paragraph 16(b). (b) Buyer and Seller shall attempt to settle Disputes in an amicable manner through mediation pursuant to Florida Rules for Certified and Court-Appointed Mediators and Chapter 44, F.S., as amended (the "Mediation Rules"). The mediator must be certified or must have experience in the real estate industry. injunctive relief may be sought without first complying with this Paragraph 16(b). Disputes not settled pursuant to this Paragraph 16 may be resolved by instituting action in the appropriate court having jurisdiction of the matter. This Paragraph 16 shall survive Closing or termination of this Contract. 17. ATTORNEY'S FEES; COSTS: The parties will split equally any mediation fee incurred in any mediation permitted by this Contract, and each party will pay their own costs, expenses and fees, including attorney's fees, incurred in conducting the mediation. H any litigation permitted by this Gontraet, the prevailing party shall be entitled to recover fremthe non prevailing patty e09ts-and-fees; ineluding reasonable -attorney's-fees. +neurred in eondueting the litigation. This Paragraph 17 shall survive Closing or termination of this Contract. STANDARDS FOR REAL ESTATE TRANSACTIONS ("STANDARDS") 18. STANDARDS: A. TITLE: (@) TITLE EVIDENCE; RESTRICTIONS; EASEMENTS; LIMITATIONS: Within the time period provided in Paragraph 9(c), the Title Commitment, with legible copies of instruments listed as exceptions attached thereto, shall be issued and delivered to Buyer. The Title Commitment shall set forth those matters to be discharged by Seller at or before Closing and shall provide that, upon recording of the deed to Buyer, an owner's policy of title insurance in the amount of the Purchase Price, shall be issued to Buyer insuring Buyer's marketable title to the Real Property, subject only to the following matters: (a) comprehensive land use plans, zoning, and other land use restrictions. prohibitions and requirements imposed by governmental authority; (b) restrictions and matters appearing on the Plat or otherwise common to the subdivision; (c) outstanding oil, gas and mineral rights of record without right of entry; (d) unplatted public utility easements of record (located contiguous to real property lines and not more than 10 feet in width as to rear or front lines and 7 1/2 feet in width as to side lines); (e) taxes for year of Closing and subsequent years: and (f) assumed mortgages and purchase money mortgages. if any (if additional items. attach addendum); provided, that, none prevent use of Property for RESIDENTIAL PURPOSES. If there exists at Closing any violation of items identified in (b)- (f) above, then the same shall be deemed a title defect. Marketable title shall be determined according to applicable Title Standards adopted by authority of The Florida Bar and in accordance with law. Buyer's Initials Page 7 of 12 Seller's Initials Florida Realtors/FloridaBar-ASIS6 Rev.10/21 @ 2021 Florida Realtors' and Th e Florida Bar. All rights reserved. Sen/al: 085984000167.9519445 ,Form 3Simplicity STANDARDS FOR REAL ESTATE TRANSACTIONS ("STANDARDS") CONTINUED 386 (ii) TITLE EXAMINATION: Buyer shall have 5 days after receipt of Title Commitment to examine it and notify Seller 387 in writing specifying defect(s), if any, that render title unmarketable. If Seller provides Title Commitment and it is 368 delivered to Buyer less than 5 days prior to Closing Date, Buyer may extend Closing for up to 5 days after date of 389 receipt to examine same in accordance with this STANDARD A. Seller shall have 30 days ("Cure Period") after 30 receipt of Buyer's notice to take reasonable diligent efforts to remove defects. If Buyer fails to so notify Seller, Buyer 391 shall be deemed to have accepted title as it then is. If Seller cures defects within Cure Period, Seller will deliver 392 written notice to Buyer (with proof of cure acceptable to Buyer and Buyer's attorney) and the parties will close this 393 Contract on Closing Date (or if Closing Date has passed, within 10 days after Buyer's receipt of Seller's notice). If 394 Seller is unable to cure defects within Cure Period, then Buyer may, within 5 days after expiration of Cure Period, 395 deliver written notice to Seller: (a) extending Cure Period for a specified period not to exceed 120 days within which 39a Seller shall continue to use reasonable diligent effort to remove or cure the defects ("Extended Cure Period"); or 397 (b) electing to accept title with existing defects and close this Contract on Closing Date (or if Closing Date has 398 passed, within the earlier of 10 days after end of Extended Cure Period or Buyer's receipt of Seller's notice), or (c) 399 electing to terminate this Contract and receive a refund of the Deposit, thereby releasing Buyer and Seller from all 40o further obligations under this Contract. If after reasonable diligent effort, Seller is unable to timely cure defects, and «o1 Buyer does not waive the defects, this Contract shall terminate, and Buyer shall receive a refund of the Deposit, 402 thereby releasing Buyer and Seller from all further obligations under this Contract. 403 B. SURVEY: If Survey discloses encroachments on the Real Property or that improvements located thereon 404 encroach on setback lines. easements, or lands of others, or violate any restrictions, covenants, or applicable 4os governmental regulations described in STANDARD A (i)a). (b) or (d) above, Buyer shall deliver written notice of 406 such matters, together with a copy of Survey, to Seller within 5 days after Buyer's receipt of Survey, but no later 407 than Closing. If Buyer timely delivers such notice and Survey to Seller, such matters identified in the notice and 4os Survey shall constitute a title defect, subject to cure obligations of STANDARD A above. If Seller has delivered a 409 prior survey, Seller shall, at Buyer's request, execute an affidavit of "no change" to the Real Property since the 410 preparation of such prior survey, to the extent the affirmations therein are true and correct. 411 C. INGRESS AND EGRESS: Seller represents that there is ingress and egress to the Real Property and title to 412 the Real Property is insurable in accordance with STANDARD A without exception for lack of legal right of access. 413 D. LEASE INFORMATION: Seller shall, at least 10 days prior to Closing, furnish to Buyer estoppel letters from 414 tenant(s)/occupant(s) specifying nature and duration of occupancy, rental rates, advanced rent and security 41s deposits paid by tenant(s) or occupant(s)("Estoppel Letter(s)"). If Seller is unable to obtain such Estoppel Letter(s) 416 the same information shall be furnished by Seller to Buyer within that time period in the form of a Seller's affidavit 417 and Buyer may thereafter contact tenant(s) or occupant(s) to confirm such information. If Estoppel Letter(s) or 418 Seller's affidavit, if any, differ materially from Seller's representations and lease(s) provided pursuant to Paragraph 419 6, or if tenant(s)/occupant(s) fail or refuse to confirm Seller's affidavit, Buyer may deliver written notice to Seller 420 within 5 days after receipt of such information. but no later than 5 days prior to Closing Date, terminating this 421 Contract and receive a refund of the Deposit, thereby releasing Buyer and Seller from all further obligations under 422 this Contract. Seller shall, at Closing, deliver and assign all leases to Buyer who shall assume Seller's obligations 423 thereunder. «24 E. LIEN S: Seller shall furnish to Buyer at Closing an affidavit attesting (i) to the absence of any financing 425 statement, claims of lien or potential lienors known to Seller and (ii) that there have been no improvements or 426 repairs to the Real Property for 90 days immediately preceding Closing Date. If the Real Property has been 427 improved or repaired within that time, Seller shall deliver releases or waivers of construction liens executed by all 428 general contractors, subcontractors. suppliers and materialmen in addition to Seller's lien affidavit setting forth «29 names of all such general contractors, subcontractors, suppliers and materialmen, further affirming that all charges 430 for improvements or repairs which could serve as a basis for a construction lien or a claim for damages have been «31 paid or will be paid at Closing. 432 F. TIME: Time is of the essence in this Contract. Calendar days, based on where the Property is located, shall 433 be used in computing time periods. Other than time for acceptance and Effective Date as set forth in Paragraph 3, 434 any time periods provided for or dates specified in this Contract, whether preprinted, handwritten, typewritten or 435 inserted herein, which shall end or occur on a Saturday, Sunday, national legal public holiday (as defined in 5 436 US C. Sec. 6103(a)), or a day on which a national legal public holiday is observed because it fell on a Saturday or 437 Sunday, shall extend to the next calendar day which is not a Saturday. Sunday, national legal public holiday, or a 438 day on which a national legal public holiday is observed. 439 G. FORCE MAJEURE: Buyer or Seller shall not be required to exercise or perform any right or obligation under 4o this Contract or be liable to each other for damages so long as performance or non-performance of the right or w obligation, or the availability of services, insurance, or required approvals essential to Closing, is disrupted, delayed, Buyer's Initials Page8 of 12 Seller's Initials • FloridaRealtors/FloridaBar-ASIS-6 Rev.10/21 € 2021 Florida Realtors" and The Florida Bar. All rights reserved. Senta'#: 085984.000167.9519445 Form 3 simplicity 442 443 444 445 446 447 448 449 450 451 452 453 454 455 456 457 458 459 460 461 462 463 464 465 466 467 468 469 470 471 472 473 474 475 476 477 478 479 480 481 482 483 484 485 486 487 488 489 490 491 492 493 494 495 496 497 496 STANDARDS FOR REAL ESTATE TRANSACTIONS ("STANDARDS") CONTINUED caused or prevented by a Force Majeure event. "Force Majeure" means: hurricanes, floods, extreme weather, earthquakes, fires, or other acts of God, unusual transportation delays, wars, insurrections, civil unrest, or acts of terrorism, governmental actions and mandates, government shut downs, epidemics, or pandemics, which, by exercise of reasonable diligent effort, the non-performing party is unable in whole or in part to prevent or overcome. The Force Majeure event will be deemed to have begun on the first day the effect of the Force Majeure prevents performance, non-performance, or the availability of services, insurance or required approvals essential to Closing. All time periods affected by the Force Majeure event, including Closing Date, will be extended a reasonable time up to 7 days after the Force Majeure event no longer prevents performance under this Contract; provided, however, if such Force Majeure event continues to prevent performance under this Contract more than 30 days beyond Closing Date, then either party may terminate this Contract by delivering written notice to the other and the Deposit shall be refunded to uyer, thereby releasing Buyer and Seller from all further obligations under this Contract H. CONVEYANCE: Seller shall convey marketable title to the Real Property by statutory warranty, trustee's, personal representative's, or guardian's deed, as appropriate to the status of Seller, subject only to matters described in STANDARD A and those accepted by Buyer. Personal Property shall, at request of Buyer. be transferred by absolute bill of sale with warranty of title, subject only to such matters as may be provided for in this Contract. I. CLOSING LOCATION; DOCUMENTS; AND PROCEDURE: (i) LOCATION: Closing will be conducted by the attorney or other closing agent ("Closing Agent") designated by the party paying for the owner's policy of title insurance and will take place in the county where the Real Property is located at the office of the Closing Agent, or at such other location agreed to by the parties. If there is no title insurance, Seller will designate Closing Agent. Closing may be conducted by mail, overnight courier, or electronic means. (ii) CLOSING DOCUMENTS: Seller shall at or prior to Closing, execute and deliver, as applicable, deed, bill of sale, certificate(s) of title or other documents necessary to transfer title to the Property, construction lien affidavit(s), owner's possession and no lien affidavit(s), and assignment(s) of leases. Seller shall provide Buyer with paid receipts for all work done on the Property pursuant to this Contract. Buyer shall furnish and pay for, as applicable, the survey, flood elevation certification, and documents required by Buyer's lender. (iii) FinCEN GTO REPORTING OBLIGATION. If Closing Agent is required to comply with a U.S. Treasury Department's Financial Crimes Enforcement Network ("FinCEN") Geographic Targeting Order ("GTO"), then Buyer shall provide Closing Agent with essential information and documentation related to Buyer and its Beneficial Owners, including photo identification, and related to the transaction contemplated by this Contract which are required to complete mandatory reporting, including the Currency Transaction Report; and Buyer consents to Closing Agent's collection and report of said information to IRS. (iv) PROCEDURE: The deed shall be recorded upon Collection of all closing funds.' If the Title Commitment provides insurance against adverse matters pursuant to Section 627.7841, F.S., as amended, the escrow closing procedure required by STANDARD J shall be waived, and Closing Agent shall, subject to Collection of all closing funds, disburse at Closing the brokerage fees to Broker and the net sale proceeds to Seller. J. ESCROW CLOSING PROCEDURE: If Title Commitment issued pursuant to Paragraph 9(c) does not provide for insurance against adverse matters as permitted under Section 627.7841, F.S., as amended, the following escrow and closing procedures shall apply: (1) all Closing proceeds shall be held in escrow by the Closing Agent for a period of not more than 10 days after Closing; (2) if Seller's title is rendered unm arketable, through no fault of Buyer, Buyer shall, within the 10 day period, notify Seller in writing of the defect and Seller shall have 30 days from date of receipt of such notification to cure the defect; (3) if Seller fails to timely cure the defect, the Deposit and all Closing funds paid by Buyer shall, within 5 days after written demand by Buyer, be refunded to Buyer and, simultaneously with such repayment, Buyer shall return the Personal Property, vacate the Real Property and re- convey the Property to Seller by special warranty deed and bill of sale; and (4) if Buyer fails to make timely demand for refund of the Deposit, Buyer shall take title as is, waiving all rights against Seller as to any intervening defect except as may be available to Buyer by virtue of warranties contained in the deed or bill of sale. K. PRORATIONS; CREDITS: The following recurring items will be made current (if applicable) and prorated as of the day prior to Closing Date, or date of occupancy if occupancy occurs before Closing Date: real estate taxes (including special benefit tax assessments imposed by a COD pursuant to Chapter 190, F.S., and assessments imposed by special district(s) pursuant to Chapter 189, F.S.), interest, bonds, association fees, insurance, rents and other expenses of Property. Buyer shall have option of taking over existing policies of insurance, if assumable, in which event premiums shall be prorated. Cash at Closing shall be increased or decreased as may be required by prorations to be made through day prior to Closing. Advance rent and security deposits, if any, will be credited to Buyer. Escrow deposits held by Seller's mortgagee will be paid to Seller. Taxes shall be prorated based on current year's tax. If Closing occurs on a date when current year's millage is not fixed but current year's assessment Buyer's Initials Page 9 of 12 Seller's Initials FloridaRe altors/FloridaBa r-ASIS-6 Rev.10/21 2 021 Florida Realtor s' and The Florida Bar. All rights reserved. Senta!: 085984-000167-9519445 :Form E} simplicity STANDARDS FOR REAL ESTATE TRANSACTIONS ("STANDARDS") CONTINUED 499 500 501 502 503 504 505 50 6 507 508 509 510 511 512 513 514 515 516 517 518 519 520 521 522 523 524 525 526 527 528 529 530 531 532 533 534 535 536 537 538 539 540 541 542 543 544 545 546 547 548 54 9 550 551 552 553 554 555 is available, taxes will be prorated based upon such assessment and prior year's millage. If current year's assessment is not available, then taxes will be prorated on prior year's tax. If there are completed improvements on the Real Property by January 1st of year of Closing, which improvements were not in existence on January 1st of prior year. then taxes shall be prorated based upon prior year's millage and at an equitable assessment to be agreed upon between the parties, failing which, request shall be made to the County Property Appraiser for an informal assessment taking into account available exemptions. In all cases, due allowance shall be made for the maximum allowable discounts and applicable homestead and other exemptions. A tax proration based on an estimate shall, at either party's request, be readjusted upon receipt of current year's tax bill. This STANDARD K shall survive Closing. L. ACCESS TO PROPERTY TO CONDUCT APPRAISALS, INSPECTIONS, AND WALK-THROUGH: Seller shall, upon reasonable notice, provide utilities service and access to Property for appraisals and inspections, including a walk-through (or follow-up walk-through if necessary) prior to Closing. M. RISK OF LOSS: If, after Effective Date, but before Closing, Property is damaged by fire or other casualty ("Casualty Loss") and cost of restoration (which shall include cost of pruning or removing damaged trees) does not exceed 1.5% of Purchase Price, cost of restoration shall be an obligation of Seller and Closing shall proceed pursuant to terms of this Contract. If restoration is not completed as of Closing, a sum equal to 125% of estimated cost to complete restoration (not to exceed 1.5% of Purchase Price) will be escrowed at Closing. If actual cost of restoration exceeds. escrowed amount, Seller shall pay such actual costs (but, not in excess of 1.5% of Purchase Price). Any unused portion of escrowed amount shall be returned to Seller. If cost of restoration exceeds 1.5% of Purchase Price, Buyer shall elect to either take Property "as is" together with the 1.5%, or receive a refund of the Deposit thereby releasing Buyer and Seller from all further obligations under this Contract. Seller's sole obligation with respect to tree damage by casualty or other natural occurrence shall be cost of pruning or removal. N. 1031 EXCHANGE: If either Seller or Buyer wish to enter into a like-kind exchange (either simultaneously with Closing or deferred) under Section 1031 of the Internal Revenue Code ("Exchange"), the other party shall cooperate in all reasonable respects to effectuate the Exchange, including execution of documents; provided, however, cooperating party shall incur no liability or expense related to the Exchange, and Closing shall not be contingent upon, nor extended or delayed by, such Exchange. 0. CONTRACT NOT RECORDABLE; PERSONS BOUND; NOTICE; DELIVERY; COPIES; CONTRACT EXECUTION: Neither this Contract nor any notice of it shall be recorded in any public or official records. This Contract shall be binding on, and inure to the benefit of, the parties and their respective heirs or successors in interest. Whenever the context permits, singular shall include plural and one gender shall include all. Notice and delivery given by or to the attorney or broker (including such broker's real estate licensee) representing any party shall be as effective as if given by or to that party. All notices must be in writing and may only be made by mail, facsimile transmission, personal delivery or email. A facsimile or electronic copy of this Contract and any signatures hereon shall be considered for all purposes as an original. This Contract may be executed by use of electronic signatures, as determined by Florida's Electronic Signature Act and other applicable laws. P. INTEGRATION; MODIFICATION: This Contract contains the full and complete understanding and agreement of Buyer and Seller with respect to the transaction contemplated by this Contract and no prior agreements or representations shall be binding upon Buyer or Seller unless included in this Contract. No modification to or change in this Contract shall be valid or binding upon Buyer or Seller unless in writing and executed by the parties intended to be bound by it. Q . WAIVER: Failure of Buyer or Seller to insist on compliance wi th , or strict performance of, any pro vi sion of this Contract, or to take advantage of any right under this Contract, shall not constitute a waiver of other provisions or rights. R. RIDERS; ADDENDA; TYPEWRITTEN OR HANDWRITTEN PROVISIONS: Riders, addenda, and typewritten or handwritten provisions shall control all printed provisions of this Contract in conflict with them. S. COLLECTION or COLLECTED: "Collection" or "Collected" means any checks tendered or received, including Deposits, have become actually and finally collected and deposited in the account of Escrow Agent or Closing Agent. Closing and disbursement of funds and delivery of closing documents may be delayed by Closing Agent until such amounts have been Collected in Closing Agent's accounts. T . RESERVED. U. APPLICABLE LAW AND VENUE: This Contract shall be construed in accordance with the laws of the State of Florida and venue for resolution of all disputes, whether by mediation, arbitration or litigation, shall lie in the county where the Real Property is located. V. FIRPTA TAX WITHHOLDING: If a seller of U.S. real property is a "foreign person" as defined by FIRPTA, Section 1445 of the Internal Revenue Code ("Code") requires the buyer of the real property to withhold up to 15% of the amount realized by the seller on the transfer and remit the withheld amount to the Internal Revenue Service Buyer's Initials Page 10 of12 Seller's Initials FloridaRealtors/FloridaBar-ASIS-6 Rev.10/21 2021 Florida Realtors' and The Florida Bar. AII rights reserved. Serial, 085984000167.9519445 E Form E7 Simplicity S T A N D A R D S F O R R E A L E S T A T E T R A N S A C T IO N S ("S T A ND A R D S") C ON TI N U ED 556 557 558 559 560 561 562 563 564 565 566 567 568 569 570 571 572 573 574 575 576 577 578 579 580 581 582 583 584 585 586 587 (IRS) unless an exemption to the required withholding applies or the seller has obtained a Withholding Certificate from the IRS authorizing a reduced amount of withholding. (i) No withholding is required under Section 1445 of the Code if the Seller is not a "foreign person". Seller can provide proof of non-foreign status to Buyer by delivery of written certification signed under penalties of perjury, stating that Seller is not a foreign person and containing Seller's name, U.S. taxpayer identification number and home address (or office address, in the case of an entity), as provided for in 26 CFR 1,1445-2/b). Otherwise, Buyer shall withhold the applicable percentage of the amount realized by Seller on the transfer and timely remit said funds to the IRS. (ii) If Seller is a foreign person and has received a Withholding Certificate from the IRS which provides for reduced or eliminated withholding in this transaction and provides same to Buyer by Closing, then Buyer shall withhold the reduced sum required, if any, and timely remit said funds to the/RS. (iii) If prior to Closing Seller has submitted a completed application to the IRS for a Withholding Certificate and has provided to Buyer the notice required by 26 CFR 1.1445-1(c) (2))B) but no Withholding Certificate has been received as of Closing, Buyer shall, at Closing, withhold the applicable percentage of the amount realized by Seller on the transfer and, at Buyer's option, either (a) timely remit the withheld funds to the IRS or (b) place the funds in escrow, at Seller's expense. with an escrow agent selected by Buyer and pursuant to terms negotiated by the parties, to be subsequently disbursed in accordance with the Withholding Certificate issued by the IRS or remitted directly to the IRS if the Seller's application is rejected or upon terms set forth in the escrow agreement. (iv) In the event the net proceeds due Seller are not sufficient to meet the withholding requirement(s) in this transaction, Seller shall deliver to Buyer, at Closing, the additional Collected funds necessary to satisfy the applicable requirement and thereafter Buyer shall timely remit said funds to the IRS or escrow the funds for disbursement in accordance with the final determination of the IRS, as applicable. (v) Upon remitting funds to the IRS pursuant to this STANDARD, Buyer shall provide Seller copies of IRS Forms 8288 and 8288-A, as filed. W. RESERVED X. BUYER WAIVER OF CLAIMS: To the extent permitted by law, Buyer waives any claims against Seller and against any real estate licensee involved in the negotiation of this Contract for any damage or defects pertaining to the physical condition of the Property that may exist at Closing of this Contract and be subsequently discovered by the Buyer or anyone claiming by, through, under or against the Buyer. This provision does not relieve Seller's obligation to comply with Paragraph 10(j). This Standard X shall survive Closing. ADDENDA AND ADDITIONAL TERMS 589' A9. ADDENDA: The following additional terms are included in the attached addenda or riders and incorporated into this s90 Contract (Check if applicable): 16 LJ B . ac. D. Je I. 1G JH I t § J. I K. I L. Condominium Rider Homeowners' Assn. Seller Financing Mortgage Assumption FHA/VA Financing Appraisal Contingency Short Sale Homeowners/Flood Ins. RESERVED Interest-Bearing Acct. RESERVED RESERVED [M. Defective Drywall D N_ Coastal Construction Control Line []O. Insulation Disclosure []P. Lead Paint Disclosure (Pre-1978) D 0. Housing for Older Persons []R Rezoning D S. Lease Purchase/ Lease Option 0 T. Pre-Closing Occupancy § U. Post-Closing Occupancy V. Sale of Buyer's Property W. Back-up Contract B X. Kick-out Clause Y Seller's Attorney Approval 8 Z. Buyer's Attorney Approval AA. Licensee Property Interest 0 BB. Binding Arbitration 0 CC. Miami-Dade County Special Taxing District 0 DD. SeasonalNacation Rentals Jee PACE Disclosure [}Other. Buyer's Initials Page 11 of 12 Seller's initials Fi or i0 a R ealto rs/F lorida 8 ar-A SI S -6 Rev 10 /2 1) 20 21 Fl or id a Realtors" and The Flor ida Bar. Al l rights reserv ed. Sci2l: 085984.000167.9619445 As Form El sim plicity s9:' 20. ADDITIONAL TERMS: _ A Notwithstanding Section 12 gr any other provision of this Contract._Buyer shall haye po obligation to purchase the Property,and no transfer of title to the Buyer may occur__unless ang ggti][1 Buyer has completed s93 a[gderally required environmental_review, Buyer has accepted the environmental review,_and guyer has received an . s94 approved request for release of federal funds. Buyer shall notify Seller upon acceptance of the environmental review sos within three (3) business days from receipt of the results of the environmental review. sss B. This Property will be purchased with federal funds, therefore the Buyer_ mus! comply .with the Uniform 597 elocation Assistance and Rega[Property_Acquisition Agt [URA)_ If_ thereisatenant gt the property SellgE. 598 agr-ees to allow Buyer to send notices to tenants after Buyer acknowledges that the property inspection reporl-- 599 and appraisal are satisfactory. Buyer may schedule and 600 conduct tenant interviews after the inspection period and prior to closing. 601 602 ; The inspections conducted by Buyer pursuant to Section 12, to determine acceptability of the Property by Buyer, shall 603 ~clude, without limitation, title search, lien search and appraisal. 604 sos D. This Contract shall be subject to. and contingent upon the Mayor and City Commission approving in its sole and sos absolute discretion the Contract during the_lune 28__2023 City Commission_meeting In the event that the Mayor and City so7 Commission do not approve the Contract the Contract shall automatically terminate, Seller shall promptly refund Buyer its cos deposit., and the parties shall be released from any further obligations under the Contract 609 COUNTER-OFFER 610 611 612 613 [Seller counters Buyer's offer. THIS IS INTENDED TO BE A LEGALLY BINDING CONTRACT. IF NOT FULLY UNDERSTOOD, SEEK THE ADVICE OF AN ATTORNEY PRIOR TO SIGNING. THIS FORM HAS BEEN APPROVED BY THE FLORIDA REALTORS AND THE FLORIDA BAR. 614 615 616 617 Approval of this form by the Florida Realtors and The Florida Bar does not constitute an opinion that any of the terms and condi tions in this Contract should be accepted by the parties in a particular transaction. Terms and conditions should be negotiated based upon the respective interests, objectives and bargaining positions of all interested persons. 618 619 AN ASTERISK(*) FOLLOWING A LINE NUMBER IN THE MARGIN INDICATES THE LINE CONTAINS A BLANK TO BE COMPLETED. 620° 621 622 p /[/(d l !Alina T. Hudak. City Manager Buyer.] ~-----~-------------------~ Seller: --------------------------- 623 ] [)ate. Date: -------- Date: -------- [)a(e, 624 625° 626' 627° 628 629 630 631 632 533 Buyer's address for purposes of notice 1700 Convention Center Drive Seller's address for purposes of notice Miami Beach. FL 33139 [Attention: City Manager BROKER: Listing and Cooperating Brokers, if any, named below (collectively, "Broker"), are the only Brokers entitled tci compensation in connection with this Contract Instruction to Closing Agent: Seller and Buyer direct Closing Agent to disburse at Closing the full amount of the brokerage fees as specified in separate brokerage agreements with the parties and cooperative agreements between the Brokers, except to the extent Broker has retained such fees from the escrowed funds. This Contract shall not modify any MLS or other offer of compensation made by Seller or Listing Broker to Cooperating Brokers. 634' 635 NIA Carlos Gutierrez Cooperating Sales Associate, if any 636 637 Listing Sales Associate Best Realty of Miami Cooperating Broker, if any Flo rid3 R e al tor s/Flor id a B ar-A SI S -6 Serial: 085984.000167.9519445 Listing Broker APPROVED AS TO Pag e 12 o r12 FORM & LANGUAGE Rev. 1o r21 e 20 2 1 Fond Realtors an d T e Fl orida sar. A ants res , FO R? EXE C UTI ON as at '7!!1.- [23 })_ Ciy Anonev fe