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HomeMy WebLinkAboutResolution - 2007-R0215 - Compromise Settlement Agreement - Mcdougal Construction Ltd - 05_24_2007Resolution No. 2007-RO215 May 24, 2007 Item No, 5.29 RESOLUTION E IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF LUBBOCK: THAT the Mayor of the City of Lubbock BE and is hereby authorized and directed to execute for and on behalf of the City of Lubbock a Compromise Settlement Agreement and Release of Claims with the owners of certain real property located on 50th Street, McDougal Construction, Ltd., a Texas limited partnership f/k/a McDougal Construction, L.C., a Texas limited liability company, relating to the acquisition of a portion of the property owned by McDougal Construction, Ltd., for the widening of West 50th Street, which is attached hereto and which shall be spread upon the minutes of the Council and as spread upon the minutes of this Council shall constitute and be a part of this Resolution as if fully copied herein in detail. Passed by the City Council this 24th day of May , 2007. David A. Mill , Mayor ATTEST: Rebecca Garza, City Secretary APPROVED AS TO CONTENT: )Ite &a4--t, Dave Booher Right of Way Agent APPROVED AS TO FORM: Mathew L. Wade Natural Resources Attorney m/ecdocs/settlement agreement -McDougal Constriction May 17, 2007 Resolution No. 2007-RO215 COMPROMISE SETTLEMENT AGREEMENT AND RELEASE OF CLAIMS This Compromise Settlement Agreement and Release of Claims ("Settlement Agreement") is entered into by, between, and among the City of Lubbock (the "City"), and McDougal Construction, Ltd., a Texas limited partnership f/k/a McDougal Construction, L.C., a Texas limited liability company, the owners certain real property located on 50`' Street, (collectively the "Property Owner"). RECITALS WHEREAS, for the purposes of widening 50'h Street from Slide Road to West Loop 289 the City Council of the City of Lubbock authorized, via Resolution 2005- R0398, passed August 25, 2005, the purchase/acquisition of a portion of the real property owned by the Property Owner and more particularly described by metes and bounds as follows: Being 0.118 acres (5156 Sq. Ft.) of land out of the Northwest '/4 of Section 28, Block E-2, Lubbock County, Texas and conveyed by Warranty Deed to McDougal Construction, L.C. and recorded in Volume 6172, Page 88 of the Official Real Property Records of Lubbock County, Texas, which said 0.118 acres (5156 Sq. Ft.) of land is more particularly described as follows: BEGINNING at an '/2" iron rod, found in the existing South right-of-way line of 50"' Street for the Northeast corner of this parcel and being the Northeast corner of said tract conveyed by Warranty Deed to McDougal Construction, L.C. and recorded in Volume 6172, Page 88 of the Official Real Property Records of Lubbock County, Texas, whence the Northeast corner of the said Northwest '/4 of Section 28, Block E-2 bears North 01 °48' 13" East, 32.55 feet and South 88°03'59" East, 739.63 feet; (1) THENCE South 01 °48' 13" West, along the existing South right-of-way line of said 501h Street and the East line of said tract recorded in Volume 6172, Page 88, 15.00 feet to a %" iron rod with cap, set in the proposed South line of said 501h Street for the Southeast corner of this parcel and being the Northwest corner of Tract "A", The Dominion; (2) THENCE North 889 V51" West, along the proposed south right-of-way line of said 501h Street, 173.65 feet to a 1/2" iron rod with cap, set for a corner of this parcel;. (3) THENCE Southwesterly along the arc of a curve to the left and along the proposed South right-of-way line of said 50`h Street, an arc distance of 155.55 feet to a %" iron with cap, set in the East line of Tract "B", Newman Addition, the West line of said un-platted tract as recorded in Volume 6172, Page 88 and the proposed South line of said 50`h Street for the Southwest corner of this parcel, said curve has a radius of 11,414.16 feet, a central angle of 00°46'51 ", and a chord that bears North 89°21'44" West with a distance of 155.55 feet; (4) THENCE North 01 °50' 12" East, along the West line of said un-platted tract as recorded in Volume 6172, Page 88 of the Real Property Records of Lubbock County, Texas and being the East line of Tract "B", Newman Addition to the City of Lubbock, Lubbock County, Texas, at 3.16 feet pass a 1,12" iron rod found for the Northeast corner of said Tract "B", Newman Addition, continuing along said West line of said un-platted tract and being the existing right-of-way line of 50«' Street, a total distance of 18.16 feet to a '�/2" iron rod, found for the Northwest corner of this parcel and being the Northwest corner of said un-platted tract; (5) THENCE South 88'11'52" East, along the existing south right-of-way line of said 50`h Street and being the North line of said un-platted tract as described in Volume 6172, Page 88 of the Real Property Records of Lubbock County, Texas, 329.36 feet to the P.O.B. of which contains an area of 0.118 acres (5156 Sq. Ft.); (the "Property"); WHEREAS, all parties are willing to settle all claims, and resolve all matters between them in connection with the acquisition of the Property, to avoid the inconvenience, distractions, uncertainties, and expenses attendant to eminent domain proceedings, litigation and trial, in exchange for the consideration and releases set forth below. IN CONSIDERATION of the payment by City to the Property Owner of the sum of FORTY-SIX THOUSAND FOUR HUNDRED AND FOUR and NO1100 DOLLARS ($46,404.00), the Property Owner agrees to execute a Special Warranty Deed in the form of Exhibit A, attached hereto and incorporated herein by reference, the purpose of which is to convey, in fee simple, the Property described above to the City. This conveyance is made under threat of condemnation and is being done to avoid eminent domain proceedings and the added expenses of litigation, and the consideration recited herein represents a settlement and compromise by all parties as to the value of the property interests herein conveyed and damages, if any, to remaining property not taken. This Agreement settles all claims, including, without limitation, all claims or demands for damages, attorney's fees, costs, causes of action or suit in equity, of whatsoever kind or nature between the City and the Property Owner and their respective officers, employees, directors and agents as relates to the threatened condemnation. 2. Payment shall be made by check in the amount of FORTY-SIX THOUSAND FOUR HUNDRED AND FOUR and NO/100 DOLLARS ($46,404.00), payable to Service Title Company (the "Closing Agent") after this Settlement Agreement is executed by all parties. 3. The Closing Agent shall deliver to the Property Owner or its duty authorized agents, the funds described above once all documents, items and instruments required of this Settlement Agreement are completed, executed and/or delivered to the satisfaction of Settlement Agreement, McDougal Construction Page 2 of 7 the City. The funds shall be made payable to Zachary S. Brady, Trustee for McDougal Construction, Ltd. 4. The Property Owner further agrees, in order to convey the unencumbered fee simple interest in and on the Property, to secure and/or execute any additional instruments that may be required, in the sole discretion of the City and in a form and substance acceptable to the City, to effectuate the purposes of this Settlement Agreement, including, but not limited to, the following items: (a) The Closing Agent be provided with sufficient proof that there are no rights or claims of tenants and parties in possession under any unrecorded lease together with any security interests in fixtures given by tenant(s) of the Property; (b) That the Closing Agent be presented with sufficient documentation, proof and/or information to perform or otherwise satisfy the requirements of items 6-11 of Schedule C, which is attached hereto as Exhibit B and incorporated herein as though set forth fully herein; 5. This Settlement Agreement may be pled as a full and complete defense to any action, lawsuit, or other proceeding, which may be instituted, prosecuted, or attempted for, upon, or in respect of any of the claims released hereby in connection with the right of way acquisition accomplished herein. The Property Owner agrees that any such proceeding would cause irreparable injury to the party against whom it is brought, and that any court of competent jurisdiction may enter an injunction restraining prosecution thereof. 6. The Property Owner agrees that the damages suffered by the City by reason of any breach of any provision of this Settlement Agreement shall include not only the amount of any judgment that may be rendered against the City or any of its respective officers, employees, directors and agents by reason of a breach of this Settlement Agreement, but shall also include all damages suffered by them, including the cost of attorney's fees and other costs and expenses of instituting, preparing, prosecuting, defending any action or suit resulting from a breach of this Settlement Agreement, whether taxable or otherwise, and costs to them of attorney's fees and all other costs and expenses of instituting, preparing, or prosecuting any counterclaim, suit, motion, or action to recover damages resulting from the breach of this Settlement Agreement, whether taxable or otherwise. 7. The Property Owner hereby represents and warrants that the Property Owner owns the Property and has not transferred, conveyed, pledged, assigned, or made any other disposition of the Property or any other rights it has under this Settlement Agreement. The Property Owner agrees to indemnify and hold harmless the City and any of its respective officers, employees, directors or agents from and against any and all claims, demands, or causes of action and the reasonable and necessary costs, including attorney's fees, incurred in the defense of any proceeding or claim, brought by a person claiming an ownership interest in the Property by, through or under Settlement Agreement, McDougal Construction Page 3 of 7 Property Owner, including any liens whether statutory or otherwise, or any other matter covered by this Settlement Agreement. 8. The terms of this Settlement Agreement shall inure to the benefit of, and be binding upon, the City and the Property Owner and their respective legal representatives, successors, heirs or assigns. 9. All signatories to this Settlement Agreement hereby represent and warrant that they have the authority to execute this Settlement Agreement and all related documents, including but not limited to, the Warranty Deed attached hereto as Exhibit A, and bind the respective parties. 10. This Settlement Agreement states the entire agreement of the parties with respect to the matters discussed herein, and supersedes all prior or contemporaneous oral or written understandings, agreements, statements, or promises. 11. This Settlement Agreement may not be amended or modified in any respect except by a written instrument duly executed by all of the parties to this Settlement Agreement. 12. If this Settlement Agreement does not become effective for any reason, it shall be deemed negotiations for settlement purposes only and will not be admissible in evidence or usable for any purposes whatsoever. 13. This Settlement Agreement has been and shall be construed to have been drafted by all parties to it so that the rule of construing ambiguities against the drafter shall have no force or effect. 14. If any portion or term of this Settlement Agreement is held unenforceable by a court of competent jurisdiction, the remainder of this Settlement Agreement shall not be affected, and shall remain fully in force and enforceable. 15, Each party has consulted with whatever consultants, attorneys, or other advisors each deems appropriate concerning the effect of entering into this Settlement Agreement, and the Property Owner assume the risk arising from not seeking further or additional consultation with such advisors. 16. Each party assumes the risk of any mistake of fact or law with regard to any aspect of this Settlement Agreement, the dispute described herein, or any asserted rights released by this Settlement Agreement. 17. The Property Owner shall be solely responsible for any and all federal, state or local income taxes, if any, associated with this Settlement Agreement. 18. The terms and conditions of this Settlement Agreement shall survive the execution of the Special Warranty Deed attached hereto as Exhibit A or any other document conveying the Property described herein to the City. Settlement Agreement, McDougal Construction Page 4 of 7 19. Each party further states that this Settlement Agreement, including the foregoing release, has been carefully read and each party understands the contents thereof and has signed the same as their own respective free act, and has not been influenced in making this settlement by any representative of a party or parties released. 20, It is further understood that the provisions of this Settlement Agreement are contractual and not mere recitals, and that the laws of the State of Texas shall govern this Settlement Agreement and that venue for any action arising out of or related to this Settlement Agreement and the claims associated therewith shall lie in Lubbock County. EFFECTIVE this /00 day of , 2007. PROPERTY OWNER fl m a , Printed Name AS 11au 6-4-- of MCDOUGAL CONSTRUCTION, LTD. STATE OF TEXAS COUNTY OF LUBBOCK § I Before me, the undersigned authority, one this ��� day of Q& 2007, personally appeared /✓�/ I! C �f�e 6 zt-0Af~ of McDougal Construction, Ltd., known to me to be the person whose name is subscribed to the foregoing instrument and acknowledged to me that he executed the same for the purposes and consideration therein expressed, doing so as PA- v ACEx% of McDougal Construction, Ltd., a Texas l n' ed partnership, and on its behalf. p,NUU D. TAYLOR f S } Notary Panda, SM of Texas a l 1 Uy Cammbeioe� Expkes 4 * tpF, f JANUARY 30, 2008 r lic for the ' �v "z State �f T xas Settlement Agreement, McDougal Construction Page 5 of 7 CITY OF LUBBOCK By: David A. Miller Mayor STATE OF TEXAS COUNTY OF LUBBOCK § 4k Before me, the undersigned authority, on this c25 day of , 2007, personally appeared David A. Miller, Mayor of the City of Lubbock, known to me to be the person whose name is subscribed to the foregoing instrument and acknowledged to me that s/he executed the same for the purposes and consideration therein expressed. (&MyhEl'�[SEAL] CELU 1Notwy Pe,Stye d TimmsCommkswEVw 11m,ao' Notary lic for the State of Texas Settlement Agreement, McDougal Construction Page 6 of 7 APPROVED AS TO FORM AND CONTENT: ZACI yAR�1' B )r Atto for Property Owner MATTHEW L. WADE Attorney for City of Lubbock Settlement Agreement, McDougal Construction Page 7 of 7 E E'IN T11 L,E GUMPANY "EXHIBIT A" ResolutioDE DNo. . 22N7047070 1111111111111111fiffllllllllllllllllllllllllllllllllfllfilllll 4 PGS SPECIAL WARRANTY DEED THE STATE OF TEXAS § § KNOWN ALL MEN THESE PRESENTS COUNTY OF LUBBOCK § That MCDOUGAL CONSTRUCTION, LTD., A TEXAS LIMITED PARTNERSHIP F/K/A MCDOUGAL CONSTRUCTION, L.C., A TEXAS LIMITED LIABILITY COMPANY, hereinafter referred to as Grantor, the owners of certain real property described herein, for and in consideration of the cash sum of ten dollars ($10.00) and other good and valuable consideration in hand paid by the City of Lubbock of Lubbock County, Texas, a municipal corporation, hereinafter referred to as Grantee, the receipt and sufficiency of which is hereby acknowledged and confessed, has GRANTED, SOLD and CONVEYED, and by these presents does GRANT, SELL and CONVEY unto the Grantee, its successor and assigns, all right, title and interest in and to that certain Lot, Tract, or Parcel of land situated in the County of Lubbock, State of Texas, described as follows, to wit: All that certain tract, piece or parcel of land, lying and being situated in the County of Lubbock, State of Texas, described in the attached legal description (EXHIBIT "A") attached hereto and made a part hereof for all purposes, to which reference is made for a more particular description of said property. This conveyance is made under threat of condemnation and is being done to avoid eminent domain proceedings and the added expenses of litigation, and the consideration recited herein represents a settlement and compromise by all parties as to the value of the property interests herein conveyed and damages to remaining property not taken. Reservations from and Exceptions to Conveyance and Warranty: This conveyance is made by Grantors and accepted by the City of Lubbock subject to the following: 1. Visible and apparent easements not appearing of record. 2. Any discrepancies, conflicts, or shortages in'area or boundary lines or any encroachments or any overlapping of improvements which a current survey would show. 3. Matters presently of record in the Official Public Records of Lubbock County, Texas, that affect the property, including but not limited to easements, leases, restrictions, reservations, covenants, conditions, oil and gas leases, mineral severances, and encumbrances for taxes and assessments (other than liens and conveyances), but only to the extent that said items are still valid and in force and effect at this time. TO HAVE AND TO HOLD, the premises herein described and herein conveyed together with all and singular the rights and appurtenances thereto in any wise belonging unto the City of Special Warranty Deed Page I of 3 Lubbock and its assigns forever; and Grantors do hereby bind ourselves, our heirs, executors, administrators, successors and assigns to Warrant and Forever Defend all and singular the said premises herein conveyed unto the City of Lubbock and its assigns against every person whomsoever lawfully claiming or to claim the same or any part thereof, by through or under Grantors, but not otherwise. EXECUTED this the V1- day of, 2007. GRANTOR c ,A ra✓ , Printed Name AS 4Qd.& of MCDOUGAL CONSTRUCTION, LTD. STATE OF TEXAS § COUNTY OF LUBBOCK § Before me, the undersigned authority, on this IV'�' day of MAA 2007, personally appeared Milk-. Mc,Do uAAJ of McDougal Construction, Ltd,, known to me to be the person whose name is subscribed to the foregoing instrument and acknowledged to me that he executed the same for the purposes and consideration therein expressed, doing so as ainar��x , of McDougal Construction, Ltd., a Texas limited partnership, and on its behalf. [SEAL] U4�� Notary Pub i foll t t'pY P State of Texas LILLlE JIWf SHfPLEIf It Notary Pubkc, Stile dT=n My Cw on EXPM 07-19-Z006 artui of Special Warranty Deed Page 2 of 3 Exhibit A Being 0.118 acres (5156 Sq. Ft.) of land out of the Northwest t/4 of Section 28, Block E-2, Lubbock County, Texas and conveyed by Warranty Deed to McDougal Construction, L.C. and recorded in Volume 6172, Page 88 of the Official Real Property Records of Lubbock County, Texas, which said 0.118 acres (5156 Sq. Ft.) of land is more particularly described as follows: BEGINNING at an %2" iron rod, found in the existing South right-of-way line of 50"' Street for the Northeast corner of this parcel and being the Northeast corner of said tract conveyed by Warranty Deed to McDougal Construction, L.C. and recorded in Volume 6172, Page 88 of the Official Real Property Records of Lubbock County, Texas, whence the Northeast comer of the said Northwest t/4 of Section 28, Block E-2 bears North 01 °48' 13" East, 32.55 feet and South 88°03'59" East, 739.63 feet; (1) THENCE South 01°48'13" West, along the existing South right-of-way line of said 50`h Street and the East line of said tract recorded in Volume 6172, Page 88, 15.00 feet to a `i/2" iron rod with cap, set in the proposed South line of said 50th Street for the Southeast corner of this parcel and being the Northwest corner of Tract "A", The Dominion; (2) THENCE North 88'11'51" West, along the proposed south right-of-way line of said 50th Street, 173.65 feet to a 1/2" iron rod with cap, set for a corner of this parcel; (3) THENCE Southwesterly along the arc of a curve to the left and along the proposed South right-of-way line of said 501h Street, an arc distance of 155.55 feet to a %2" iron with cap, set in the East line of Tract "B", Newman Addition, the West line of said un-platted tract as recorded in Volume 6172, Page 88 and the proposed South line of said 50th Street for the Southwest corner of this parcel, said curve has a radius of 11,414.16 feet, a central angle of 00°46'51", and a chord that bears North 89°21'44" West with a distance of 155.55 feet; (4) THENCE North 01 °50' 12" East, along the West line of said un-platted tract as recorded in Volume 6172, Page 88 of the Real Property Records of Lubbock County, Texas and being the East line of Tract "B", Newman Addition to the City of Lubbock, Lubbock County, Texas, at 3.16 feet pass a %2" iron rod found for the Northeast corner of said Tract "B", Newman Addition, continuing along said West line of said un-platted tract and being the existing right-of-way line of 50th Street, a total distance of 18.16 feet to a %2" iron rod, found for the Northwest corner of this parcel and being the Northwest corner of said un-platted tract; (5) THENCE South 88'11'52" East, along the existing south right-of-way line of said 50th Street and being the North line of said un-platted tract as described in Volume 6172, Page 88 of the Real Property Records of Lubbock County, Texas, 329.36 feet to the P.O.B. of which contains an area of 0.118 acres (5156 Sq. Ft.). Special Warranty Deed Page 3 of 3 "EXHIBIT B" COMMITMENT FOR TITLE INSURANCE SCHEDULE C Your Policy will not cover loss, costs, attorneys' fees, and expenses resulting from the following requirements that will appear as Exceptions in Schedule B of the Policy, unless you dispose of these matters to our satisfaction, before the date the Policy is issued: Documents creating your title or interest must be approved by us and must be signed, notarized and filed for record. Satisfactory evidence must be provided that: a. no person occupying the land claims any interest in that land against the persons named in paragraph 3 of Schedule A, b. all standby fees, taxes, assessments and charges against the property have been paid, C. all improvements or repairs to the property are completed and accepted by the owner, and that all contractors, subcontractors, laborers and suppliers have been fully paid, and that no mechanic's, laborer's or materialmen's liens have attached to the property, d. there is legal right of access to and from the land, e. (on a Mortgagee Policy only) restrictions have not been and will not be violated that affect the validity and priority of the insured mortgage. You must pay the seller or borrower the agreed amount for your property or interest. 4. Any defect, lien or other matter that may affect title to the land or interest insured, that arises or is filed after the effective date of this Commitment. 5. Deed of Trust dated February 16, 1999, recorded in Volume 6172, Page 91, Official Real Property Records, Lubbock County, Texas, executed by McDougal Construction, L.C., a Texas limited liability company to Dwight I. Overton, Trustee(s), securing the payment of one note of even date therewith in the sum of $407,000.00, payable to Plains National Bank. Modification and Extension Agreement dated February 16, 2000, recorded in Volume 6594, Page 201, Official Real Property Records, Lubbock County, Texas. Modification and Extension Agreement dated February 16, 2002, recorded in Volume 7036, Page 42, Official Real Property Records, Lubbock County, Texas. Modification and Extension Agreement dated February 16, 2003, recorded in Volume 7550, Page 230, Official Public Records, Lubbock County, Texas. Modification and Extension Agreement dated February 16, 2003, recorded in Volume 8266, Page 75, Official Public Records, Lubbock County, Texas. Modification and Extension Agreement dated February 16, 2004, recorded in Volume 8992, Page 20, Official Public Records, Lubbock County, Texas. Modification and Extension Agreement dated February 16, 2005, recorded in Volume 9704, Page 54, Official Public Records, Lubbock County, Texas. Modification and Extension Agreement dated February 16, 2006, recorded in Volume 10365, Page 325, Official Public Records, Lubbock County, Texas. PLAINS NATIONAL BANK NOW KNOWN AS PLAINSCAPITAL BANK DUE AND PAYABLE FEBRUARY 15, 2007 SAID NOTE AND LIEN ALSO COVERS ADDITIONAL PROPERTY GET PARTIAL AND/OR FULL RELEASE Property taxes for the year 2007 are now due and payable to the Lubbock Central Appraisal District. 7. Affidavit as to debts and liens and parties in possession. 8. IF SURVEY IS REQUIRED, CHECK SURVEY FOR ENCROACHMENTS AND OBTAIN ANY NECESSARY First American Title Insurance Company Page 1 of 2 Continuation of Schedule C G.F. No. 62730 AFFIDAVITS OR HOLD HARMLESS. IN THE EVENT SURVEYS ARE REQUIRED AND NOT ORDERED TIMELY DUE TO LENDER AUTHORIZATION DELAYS, AND THE LATE RECEIPT OF THE SURVEY (I.E. THE DAY OF OR AFTER CLOSING), WE RESERVE THE RIGHT TO MAKE AMENDMENTS AND EXCEPT TO ANY UNFORESEEN ENCROACHMENTS, PROTRUSIONS, EASEMENTS, OR ANY OTHER ISSUES_ THAT MAY ARISE REGARDING THE SURVEY. Notice to Buyers/borrowers/Sellers/Lenders: We reserve the right to refuse any illegible copy of a prior survey being provided by the seller (as per the contract) or by the borrower or lender. Also, in the event that the Form T- 47: Residential/Commercial Real Property Affidavit is not provided timely in addition to the prior survey (original or copy), a new survey will be required in order to provide survey deletion coverage. If there have been changes to the property, a new survey will be required in order to provide survey deletion coverage. The absence of an approved survey will exclude the use of a Short Form Residential Mortgagee Policy. l0. Notice to Lenders: Please notify us immediately if requesting the following endorsements. The commitment will be revised accordingly. T-19 Mortgagee Restrictions, Encroachments, Minerals Endorsement T-17 Planned Unit Development Mortgagee Endorsement {Note to examiners/closers: T-19 applies to any mortgagee policy. T-17 applies to 1-4 Family Residential mortgagee policies. Title Work will need to be revised.} 11. Effective March 28. 2007. the followine wording must appear on the front uaee of ALL deeds. deeds of trusts and mortgages and must be typed in 12-point bold or uppercase letters before the county clerk's office will accept them for recording: NOTICE OF CONFIDENTIALITY RIGHTS: IF YOU ARE A NATURAL PERSON, YOU MAY REMOVE OR STRIKE ANY OR ALL OF THE FOLLOWING INFORMATION FROM ANY INSTRUMENT THAT TRANSFERS AN INTEREST IN REAL PROPERTY BEFORE IT IS FILED FOR RECORD IN THE PUBLIC RECORDS: YOUR SOCIAL SECURITY NUMBER OR YOUR DRIVER'S LICENSE. NOTICE: The title insurance policy being issued to you contains an arbitration provision. It allows you or the Company to require arbitration if the amount of insurance is $1,000,000 or less. If you want to retain your right to sue the Company in case of a dispute over a claim, you must request deletion of the arbitration provision before the policy is issued. If you are the purchaser in the transaction and elect deletion of the arbitration provision, a form will be presented to you at closing for execution. If you are the lender in the transaction and desire deletion of the Arbitration provision, please inform us through your Loan Closing Instructions. APPLIES TO MORTGAGEE POLICY ONLY. Co esters Tit1 am any By { First American Title Insurance Company Page 2 of 2