HomeMy WebLinkAboutOrdinance #4490 - Purchase of 603 W. Chestnut STATE OF ILLINOIS).
) SS.
COUNTY OF FULTON)
CERTIFICATE
I, Andi Smith-Walters, certify that I am the duly elected City Clerk of
the CITY OF CANTON, FULTON COUNTY, ILLINOIS.
I further certify that on August 5. 2025, the City Council of such
municipality passed and approved Ordinance #4490 entitled:
AN ORDINANCE AUTHORIZING THE PURCHASE OF
603 W. CHESTNUT, CANTON, IL 61520
The ordinance attached is a true and correct copy of the ordinance adopted by Canton
City Council.
DATED AT CANTON, ILLINOIS, THIS 5th DAY OF AUGUST, 2025
Seal
= - Indii Smith-Walters, City Clerk
City of Canton, Illinois
ORDINANCE NO. 4490
AN ORDINANCE AUTHORIZING THE PURCHASE OF
603 W. CHESTNUT, CANTON,IL 61520
WHEREAS,the City of Canton,Fulton County, Illinois ("City"), is a non-home rule unit
of government;
WHEREAS, Section 11-61-3 of the Illinois Municipal Code (65 ILCS 5/11-61-3)
provides, in part:
The corporate authorities of each municipality having a population of less than 1,000,000
inhabitants shall have the express power to purchase or lease either real estate or personal
property for public purposes through contracts which provide for the consideration for such
purchase or lease to be paid through installments to be made at stated intervals during a
certain period of time,but, in no case, shall such contracts provide for the consideration to
be paid during a period of time in excess of 20 years nor shall such contracts provide for
the payment of interest at a rate of more than that permitted in"An Act to authorize public
corporations to issue bonds, other evidences of indebtedness and tax anticipation warrants
subject to interest rate limitations set forth therein", approved May 26, 1970, as amended.
The indebtedness incurred under this Section when aggregated with existing indebtedness
may not exceed the debt limits provided in Division 5 of Article 8 of this Code;
WHEREAS, the corporate authorities desire to acquire certain real estate located at 603
W. Chestnut Street, Canton, IL 61520 (P.I.N. 09-08-28-408-023) (the Property") from William
Ashwood;
WHEREAS, William Ashwood has offered to convey the Property to the City for
$10,000.00,provided that the City pays all closing costs and other transaction fees;
WHEREAS,the corporate authorities of the City have determined that it is necessary and
in the best interest of the City to purchase the Property.
NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY
.OF CANTON, FULTON COUNTY, ILLINOIS AS FOLLOWS:
1. That the City hereby finds as fact the recitals set forth above and incorporates said recitals
herein as though fully set forth.
2. The Mayor is hereby authorized to purchase the Property for a purchase price not to exceed
$10,000.00(plus all necessary closing costs,settlement fees,recording fees,and other costs
or expenses related to closing)and to execute and deliver any and all purchase agreements,
closing documents, or other documents necessary in order to accomplish same.
3. Prior to closing,the Mayor,or his designee,is further authorized to order any due diligence
related to the Property, not to exceed $10,000.00.
Page 1 of 2
4. This Ordinance shall be in full force and effective immediately upon its passage by the City
Council of the City of Canton and approval by the Mayor thereof.
PASSED AND APPROVED THIS 5th day of August,2025.
AYES: Alderpersons Chamberlin Grimm Lovell Hale Pickel Ketcham Gossett
NAYS:None
ABSENT: Alderperson Nelson
APPROVE :
By: &34.
ent Mc owell, Mayor
ATTEST:
AzrrLrj'_
Andrea J. Smith-Walters, City Clerk
Page 2 of 2
AGREEMENT FOR PURCHASE AND SALE OF REAL PROPERTY
THIS AGREEMENT FOR PURCHASE AND SALE OF REAL PROPERTY (this
"Agreement") is made and entered into as of September 29, 2025 ("Effective Date"), by and
between the City of Canton, an Illinois municipal corporation ("Purchaser"), and William
Ashwood ("Seller"; and together with Purchaser, collectively, the "Parties").
WHEREAS, Purchaser desires to purchase real property, improvements, fixtures, and
appurtenances thereto belonging and certain personal property described in Section 1 below, and
in connection therewith, Seller and Purchaser desire to enter into this Agreement to set forth the
terms and conditions of such purchase and sale.
NOW, THEREFORE, in consideration of the mutual promises, covenants and conditions
contained in this Agreement and other good and valuable consideration,the receipt and sufficiency
of which are acknowledged, the parties agree as follows:
1. Sale Agreement.
1.1 Subject to the terms and conditions hereinafter set forth, Seller agrees to sell and
convey and Purchaser agrees to purchase the following:
1.1.1 the certain tracts or parcels of land locatd at 603 W.Chestnut Street,Canton,
IL 61520 (P.I.N. 09-08-28-408-023), more particularly described on
Exhibit A attached hereto and made a part hereof (the "Land"), together
with all and singular the rights and appurtenances pertaining to such
property, including any right, title and interest of Seller, if any, in and to
minerals, adjacent streets, alleys or rights-of-way;
1.1.2 the buildings and other improvements on the Land (the "Improvements")
(the Land and Improvements may hereinafter collectively be referred to as
the "Real Property");
1.1.3 the personal property and all rights thereto listed in Exhibit B (the"Personal
Property").
1.2 Seller shall convey merchantable title to the above-described property to Purchaser
by (1) a general warranty deed conveying the Real Property, free and clear of all liens and
encumbrances, and not subject to any easements, covenants, restrictions, dedications or rights of
way, or other matters affecting title to the Real Property or use of the Real Property, except for
those title exceptions accepted by Purchaser pursuant to Sections 3.1 and 3.2 of this Agreement
(the "Permitted Exceptions"); and (2) a Bill of Sale conveying the Personal Property to Purchaser
(or its designee) free and clear of all liens and encumbrances (if any).
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2. Purchase Price. The purchase price of the Real Property ("Purchase Price") shall
be Ten Thousand and No/100 Dollars ($10,000.00), to be paid by Purchaser to Seller at Closing,
plus or minus credits and prorations provided for in this Agreement, in cash or by certified,
cashier's or escrowee check or bank wire transfer of collected federal funds.
Prior to or at Closing, the Seller and Purchaser shall mutually agree upon the allocation of
the Purchase Price to the Real Property and Personal Property (if any). In the event the parties are
unable to agree upon said allocation, the Purchaser's accountant shall establish the allocation of
the Purchase Price for the Real Property and Personal Property, respectively.
3. Conditions Precedent - Purchaser.
Purchaser's obligations under this Agreement shall be subject to the conditions precedent
identified in this Section being satisfied to the reasonable satisfaction of Purchaser, in Purchaser's
sole discretion (or waived by Purchaser in writing). If all of the conditions set forth in this Section
are not satisfied(or waived by Purchaser in writing)on or before sixty(60)days from the Effective
Date, or the earlier or later date identified with respect to each specific condition precedent below,
or Purchaser elects to terminate this Agreement for any other reason on or before sixty (60) days
of the Effective Date (collectively, the "Due Diligence Period"), then Purchaser may terminate
this Agreement and obtain an immediate return of the Earnest Money(if any). In the event of any
termination, the parties shall have no further rights or liability under this Agreement.
3.1. Title Commitment and Policy. If not already issued at the time of this
Agreement, Seller, at Purchaser's sole cost and expense, shall have fifteen (15) days from
the Effective Date to provide Purchaser with a title commitment ("Title Commitment")
for the most current ALTA form Owner's Title Insurance Policy ("Title Policy"), issued
by Advocus National Title Insurance Company(through Froehling,Weber&Schell,LLP)
("Title Insurer"),covering the Real Property in the amount of the Purchase Price showing
merchantable record title to the Real Property to be in Seller. At Closing, Seller shall cause
Title Insurer to issue the Title Policy to Purchaser (in accordance with the Title
Commitment provided for in this Section 3.1), with all general exceptions deleted or
endorsed over (including without limitation possession, encroachments, overlaps,
boundary line disputes, matters of survey, easements, mechanic liens and taxes or special
assessments not shown as existing by the public records exceptions), subject only to the
Permitted Exceptions and other matters approved or waived in writing by Purchaser.
3.1.1. Objections to Title of Record. Within fifteen (15) days after
Purchaser's receipt of the aforesaid Title Commitment, Purchaser shall furnish to
Seller written notification of any objections to or defects in title of record set forth
in the Title Commitment. If Purchaser fails to give said notice within said fifteen
(15) day period, Purchaser shall be deemed to have accepted all matters then
affecting title to the Real Property set forth in the Title Commitment. If Purchaser
does give said notice, Purchaser shall be deemed to have accepted all matters set
forth in the Title Commitment not set forth in the notice (provided Purchaser shall
not be deemed to have waived any general exceptions). After receipt of said notice,
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Seller shall have the right, at its election, to endeavor to cure such objections to or
defects in title set forth in the notice and shall notify Purchaser of such election
within ten (10) days. If Seller does elect to endeavor to cure such objections to or
defects in title, it shall promptly commence and diligently pursue efforts to cure
such objections.
3.1.2. Failure to Cure Objections. In the event Seller fails to cure
Purchaser's objections to or defects in title within twenty (20) days of receiving
notice of such objections to or defects in title, or if Seller shall determine that its
efforts to cure will not be successful, Purchaser may either (i) waive such title
objections to or defects in title and proceed with closing hereunder or(ii)terminate
this Agreement as provided herein and obtain an immediate return of the Earnest
Money.
3.2. ALTA Survey. Purchaser, at Purchaser's sole cost and expense, shall be
permitted to obtain a current ALTA survey of the Real Property ("ALTA Survey"),to be
certified by a professional surveyor licensed by the State of Illinois to Purchaser and Title
Insurer (and other parties designated by Purchaser) and prepared in accordance with the
standard for Land Title Surveys and the American Congress of Surveying and Mapping
Class A survey, setting forth the legal description and street address of the Real Property
and showing all buildings and other improvements (including fences) located on the Real
Property,the number of stories in such buildings, easements(visible or recorded),building
lines,curb cuts,party walls(if any),parking, sewage,water,electricity,gas and other utility
facilities(together with recording information concerning the documents creating any such
easements and building lines), roads and other rights-of-way and means of physical and
record ingress and egress to and from the Real Property by public roads (including the
dimension of abutting streets) and the net (after deduction of land dedicated or used or
subject to easements for roads, highways, fire lanes, utilities, storm drains or any other
public purpose) and gross area of the land included in the Real Property, and spotting
improvements on adjoining property which are within five(5) feet of the property lines of
the Real Property. In exercising this right, Purchaser, its surveyor or other agents shall be
permitted to enter the Real Property in accordance with the provisions of Section 3.7 of
this Agreement to conduct such survey as Purchaser, in its discretion, determines to be
necessary. Alternatively, Purchaser, at Purchaser's sole cost and expense, shall also be
permitted to obtain a current boundary survey of the Real Property ("Boundary Survey"),
to be certified by a professional surveyor licensed by the State of Illinois to Purchaser.The
ALTA Survey and/or Boundary Survey may collectively be referred to as the"Survey."
3.2.1. Objections to Title of Record. Within fifteen (15) days after
Purchaser's receipt of the Survey, Purchaser shall furnish to Seller written
notification of any objections to or defects set forth in title or the Survey. If
Purchaser fails to give said notice within said fifteen (15) day period, Purchaser
shall be deemed to have accepted all matters then affecting title to the Real Property
set forth in the Survey (except those matters that were also identified in the Title
Commitment and to which Purchaser has previously objected). If Purchaser does
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give said notice, Purchaser shall be deemed to have accepted all matters set forth in
the Survey not set forth in the notice(except those matters that were also identified
in the Title Commitment and to which Purchaser has previously objected). After
receipt of said notice, Seller shall have the right, at its election, to endeavor to cure
such objections to or defects in title or the Survey set forth therein and shall notify
Purchaser of such election within ten (10) days. If Seller does elect to endeavor to
cure such objections to or defects in title or the Survey,it shall promptly commence
and diligently pursue efforts to cure such objections.
3.2.2. Failure to Cure Objections. In the event Seller fails to cure
Purchaser's objections to or defects in the Survey or title set forth in the Survey
within twenty (20) days of receiving notice of such objections to or defects, or if
Seller shall determine that its efforts to cure will not be successful, Purchaser may
either(i) waive such title objections to or defects in title or the Survey and proceed
with closing hereunder or (ii) terminate this Agreement as provided herein and
obtain an immediate return of the Earnest Money.
3.3. Environmental Audit. Purchaser, at Purchaser's sole cost and expense,
shall be permitted to conduct an environmental audit of the Real Property. Purchaser or its
engineer or other agents shall be permitted to enter the Real Property in accordance with
the provisions of Section 3.7 of this Agreement to conduct such samplings and tests of the
surface, subsurface and improvements as Purchaser, in its discretion, determines to be
necessary.At any time prior to Closing,Purchaser may (i)waive any environmental issues
set forth in the environmental audit(or reports generated thereby)and proceed with closing
hereunder;(ii)terminate this Agreement as provided herein and obtain an immediate return
of the Earnest Money; or(iii) extend Closing to a date reasonably necessary for Purchaser
to complete its environmental audit(including the review of any reports generated thereby)
and determine whether it desires to proceed with closing or terminate this Agreement as
provided herein and obtain an immediate return of the Earnest Money.
3.4. Appraisal. Purchaser, at Purchaser's sole cost and expense, shall be
pennitted to obtain an appraisal of the Real Property. Purchaser or its appraiser or other
agents shall be permitted to enter the Real Property in accordance with the provisions of
Section 3.7 of this Agreement to conduct such inspections as Purchaser, in its discretion,
detennined to be necessary. Notwithstanding the foregoing, nothing in this Section 3.4
shall affect the purchase price in the event the appraisal obtained by Purchaser under this
Section 3.4 is less than the purchase price.
3.5 Financing. Intentionally Omitted.
3.6 Zoning/Approvals. Intentionally Omitted.
3.7. Inspection. Purchaser, its employees, agents, representatives and
independent contractors shall have the right to enter upon the Real Property at any
reasonable time during normal business hours and make all tests or inspections of the Real
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Property(whether within or without the building or improvements)that they desire to make
at Purchaser's sole cost and expense. Such tests and inspections shall not unreasonably
interfere with Seller's business operations. Purchaser shall forever fully protect,defend and
hold the Seller harmless from all reasonable losses, costs, damages, attorneys' fees and
expenses of every kind and nature whatsoever which the Seller may suffer, expend or incur
and which arise out of, relate to, or are in any way connected with the Purchaser's due
diligence activities pursuant to this Section 3.7. Further, the Purchaser shall, within seven
(7) days of recordation, pay and discharge of record or bond over all mechanics' and
materialmen's liens which arise out of, relate to, or are in any way connected with the
Purchaser's due diligence activities.
3.8. Additional Due Diligence Materials. Within ten (10) business days of the
Effective Date, Seller shall tender to Purchaser any and all prior title commitments or
policies, surveys,environmental reports, zoning reports, studies,reports,plans,foreclosure
documents, and contracts related to or affecting the Real Property ("Prior Due Diligence
Materials") in Seller's possession or control, if any.
4. Closing. The purchase of the Real Property shall be consummated as follows:
4.1. Closing Date. Unless otherwise agreed to in writing or extended pursuant
to the terms of this Agreement, the closing (the "Closing') shall take place on or before
fifteen (15) days after the expiration of the Due Diligence Period (the "Closing Date" or
"Date of Closing").
4.2. Seller's Deliveries. At Closing, Seller shall deliver to Purchaser the
following:
4.2.1. Deed. Executed warranty deed to the Real Property (in the form
required by Section 1 of this Agreement) prepared by Purchaser and in a form
reasonably acceptable to Purchaser.
4.2.2. Evidence of Authorization. Evidence satisfactory to Purchaser and
Title Insurer that Seller is authorized to execute this Agreement and proceed with
the transactions provided for in this Agreement.
4.2.3. Title Policy. The Title Policy provided for in Section 3.1 of this
Agreement.
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4.2.4 Termination of Leases and Other Agreements. Fully executed
terminations of any leases, service contracts, and/or other agreements affecting the
Real Property, if any.
4.2.5 FIRPTA Statmenet. Fully executed FIRPTA statement / affidavit
in form satisfactory to Purchaser.
4.2.6 Other Documents. Such other documents, instruments,
certifications and confirmations as may be reasonably required by Purchaser or
Title Insurer to fully effect and consummate the transactions contemplated by this
Agreement.
4.3. Purchaser's Deliveries. At Closing, Purchaser shall deliver to Seller the
following:
4.3.1. Purchase Price. The Purchase Price as set forth in Section 2 of this
Agreement, reduced by the Earnest Money, plus or minus prorations provided for
in this Agreement.
4.3.2. Evidence of Authorization. Evidence satisfactory to Seller and Title
Insurer that Purchaser is authorized to execute this Agreement and proceed with the
transactions provided for in this Agreement.
4.3.3. Other Documents. Such other documents, instruments,
certifications and confirmations as may reasonably be required by Seller or Title
Insurer to fully effect and consummate the transactions contemplated by this
Agreement.
4.4. Joint Deliveries. At Closing, Seller and Purchaser shall jointly deliver to
each other the following:
4.4.1. Closing;Statement: An agreed-upon closing statement.
4.4.2. Transfer Tax Filings. Executed documents complying with the
provisions of all federal,state,county,and local law applicable to the determination
of transfer taxes.
4.4.3. ALTA Statement. If required by Title Insurer, an ALTA Statement
in the form required by Title Insurer.
4.5. Possession. Sole and exclusive possession of the Real Property shall be
delivered to Purchaser on the Closing Date.
4.6. Property Taxes.
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4.6.1. Payments by Seller. All installments of real property taxes on the
Real Property which are due and owning on or prior to the Closing Date shall be
paid by Seller prior to or at Closing.
4.6.2. Credits to Purchaser. Purchaser shall receive a credit against the
Purchase Price for all installments of real property taxes on the Real Property for
the calendar year immediately preceding the Closing Date which are not yet due
and owning as of the Closing Date. If the tax bill for the calendar year immediately
preceding the Closing Date is not yet available, then the credit shall be computed
on 110% of the latest available assessment. Real property taxes for the calendar
year of the Closing shall be prorated from January 1 of such calendar year to the
Closing Date based on 110%of the latest available assessment, and Purchaser shall
receive an additional credit against the Purchase Price for the amount so calculated.
4.7. Closin€,Costs. Seller shall pay the following costs: Seller's attorney's fees.
Purchaser shall pay the following costs: Purchaser's attorney's fees, fees incurred in
preparation of the Survey, fees incurred in performing due diligence, any city transfer or
sales taxes (if any), the insurance premium for the title policy issued pursuant to the
commitment for title insurance required by Section 3.1 of this Agreement, brokerage
commissions or consultant fees set forth in Section 4.8 of this Agreement, any county and
state transfer taxes or sales taxes, and the cost of documentary stamps, and recording fees
for recording the deed. Except as otherwise provided in this Agreement, Purchaser shall
pay any costs charged by the Title Insurer for closing.
4.8. Brokerage Commissions. There are no brokererage or consultant fees or
commissions due in relation to this Agreement. Seller and Purchaser shall indemnify and
hold harmless the other from any loss, liability, cost and expenses, including attorney's
fees, arising from the breach of the foregoing representations in this Section 4.8.
4.9. SMcial Assessments. Seller will pay any unpaid special assessments
confirmed prior to the Closing Date. Seller knows of no proceeding for special assessments
against the Real Property.
5. Seller's Representations, Warranties and Covenants. In addition to all other
representations, covenants and warranties by Seller in this Agreement, Seller represents,covenants
and warrants, as of the Effective Date and as of the Closing Date, as follows:
5.1. Ownership. Seller owns the property in fee simple absolute and will convey
good and indefeasible market title to the Property, free and clear of any liens or other
encumbrances except for the Permitted Exceptions. Seller has full right, power and
authority to enter into this Agreement and to consummate the sale contemplated hereby
without the joinder of any other person, and the party signing on behalf of Seller has been
duly authorized to sign on behalf of Seller. The execution, delivery and performance of
this Agreement have been duly authorized and no other action, consent, or approval of
Seller or any other person or entity is necessary. This Agreement has been duly executed
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and delivered by Seller, and this Agreement is a valid and binding obligation of Seller,
enforceable against it in accordance with its terms.
5.2. Leases and Other Rights in Real Property. As of the Closing Date, Seller
will have the right to possession of all of the Real Property, and there will be no third party
with the right to possession of any portion of the Real Property, whether pursuant to a
written lease (including any option to extend a written lease), an oral lease, license, or as
otherwise may be provided by law. There is no agreement affecting or restricting the
Property, including its usage and development, and so long as this Agreement is in force
Seller will not enter into any agreements affecting the Property without the prior written
approval of Purchaser, in Purchaser's sole discretion.
5.3. Liens and Liabilities. Seller shall be responsible for all debts, claims,
contracts and liabilities in any way connected with the conduct of its operations on the Real
Property, and Purchaser shall have no liability for Seller's obligations or operations
conducted on the Real Property or otherwise or for any liabilities, known, unknown,
contingent or otherwise, of Seller. No portion of the Property is affected by any special
assessments, whether or not constituting a lien thereon. Except the lien for real estate taxes
not yet due at Closing, Seller will pay any and all liens so that the Property shall not be
encumbered by any lien imposed prior to the Closing.
5.4. Litigation. There are no legal actions, suits, proceedings or claims pending
or to the best of Seller's knowledge threatened, against or with respect to Seller or the
Property, and Seiler is not aware of any facts which might result in any such action, claim,
suit or proceeding. Seller is not subject to any judgment,order or decree entered in any suit
or proceeding which will have an effect on the Property. There are no pending or, to best
of seller's knowledge,threatened condemnation or similar proceeding or rezoning affecting
the Property or any portion thereof, nor has Seller knowledge that any such action is
presently contemplated.
5.5. Governmental Regulation. The Real Property complies in all respects with
all statutes, ordinances, regulations and administrative or judicial orders or holdings,
whether or not appearing in public records, and the consummation of the transactions
contemplated by this Agreement shall not violate any such statutes,ordinances,regulations
and administrative or judicial orders or holdings or any other agreement or indenture by
which Seller is bound.
5.6. Hazardous Substances. No toxic waste or hazardous waste material have
been stored or used on the Real Property and there is no toxic waste or hazardous material
on or under the Real Property in violation of any applicable laws, rules, regulations or
Ordinances. Seller shall promptly furnish Purchaser with a copy of any and all
environmental reports and any certificates of compliance in Seller's possession, with the
Prior Due Diligence Materials, which are not otherwise subject to any restriction on
disclosure or are otherwise legally privileged.
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5.7. Non-Foreign Person/Taxes. Seller is not a "foreign person"as that term is
used and defined in the Internal Revenue Code,Section 1445,as the same may be amended.
Seller also agrees that Seller as transferor will indemnify Purchaser as transferee and agrees
to hold Purchaser harmless from any liability or cost which Purchaser may incur as a result
of: (i) Seller's failure to pay any U.S. federal income tax which Seller is required to pay
under applicable U. S. law, or (ii) any false or misleading statement contained in the
non-foreign affidavit.
5.8. No Breach. No default has occurred under any document affecting the
Property nor has Seller made any false or misleading representation or warranty to
Purchaser or any other person or entity in connection with the transaction contemplated by
this Agreement.
5.9. OFAC. Seller and all beneficial owners of Seller are in compliance with all
laws, statutes, rules and regulations of any federal, state or local governmental authority in
the United States of America applicable to such Persons (defined below), including,
without limitation, the requirements of Executive Order No. 13224, 66 Fed. Reg. 49079
(Sept. 25, 2001) (the "Order") and other similar requirements contained in the rules and
regulations of the Office of Foreign Asset Control, Department of the Treasury ("OFAC")
and in any enabling legislation or other Executive Orders in respect thereof(the Order and
such other rules, regulations, legislation, or orders are collectively called the "Orders".
Neither Seller nor any beneficial owner of Seller: (i) is listed on the Specially Designated
Nationals and Blocked Persons List maintained by OFAC pursuant to the Order and/or on
any other list of terrorists or terrorist organizations maintained pursuant to any of the rules
and regulations of OFAC or pursuant to any other applicable Orders (such lists are
collectively referred to as the "Lists"); (ii) is a Person who has been determined by
competent authority to be subject to the prohibitions contained in the Orders; (iii)is owned
or controlled by, nor acts for or on behalf of, any Person on the Lists or any other Person
who has been determined by competent authority to be subject to the prohibitions contained
in the Orders. As used herein, the term "Person" means any individual, corporation,
partnership, joint venture, association, joint stock company, trust, trustee, estate, limited
liability company, unincorporated organization,real estate investment trust,government or
any agency or political subdivision thereof, or any other form of entity.
5.10. Casualty Insurance. Until Closing and unless otherwise agreed by the
parties, Seller shall, at its expense, keep the Real Property and the improvements on the
Real Property and Personal Property constantly insured with an insurance company
acceptable to Purchaser against loss by fire and other casualties with extended coverage in
the same amounts as currently carried by Seller as of the Effective Date.
Each of Seller's representations and warranties contained in this Section 5 shall be true and
correct upon the execution of this Agreement and shall be deemed to be remade on and as of the
Closing Date and shall survive the Closing hereunder for a period of twenty four(24)months.
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Residential Disclosures. Intentionally Omitted.
6. Indemnity.
6.1. Indemnification by Seller. Seller shall indemnify, defend, and hold
harmless Purchaser, its affiliates and subsidiaries, and their respective
owners, general partners, partners, managers, members, controlling
persons, directors, officers, employees, agents, attorneys, and their
successors and assigns (collectively, the "Purchaser Indemnified
Parties")from and against,and pay to Purchaser Indemnified Parties the
amount of, all losses, claims, obligations, demands, assessments,
penalties, fines, forfeitures, liabilities, costs, and other damages,
including reasonable attorneys' fees and expenses, whether or not
involving a third-party claim (collectively, "Losses"), arising, directly or
indirectly, from, asserted against or incurred by reason of, resulting in
any manner from, or relating in any manner to (i) the inaccuracy in any
respect of any representation or warranty, or a breach of any covenant of
Seller contained in this Agreement; (ii) any obligations, liabilities or
charges of Seller not expressly assumed by Purchaser except to the extent
that Purchaser receives a credit therefor on the closing statement; (iii)
any misrepresentation in, or omission of a material fact from, any
opinion, certificate or instrument of transfer or conveyance to be
furnished to Purchaser by or on behalf of Seller under this Agreement;
or (iv) the ownership or use of the Real Property prior to the Closing
Date.
6.2. Indemnification by Purchaser. Purchaser shall indemnify, defend, and
hold harmless Seller and Seller's owners, controlling persons, directors,
officers, employees, agents, attorneys, and affiliates and their successors
and assigns (collectively, the"Seller Indemnified Parties;"and together
with Purchaser Indemnified Parties,the"Indemnified Parties")from and
against, and pay to the Seller Indemnified Parties the amount of, all
Losses arising, directly or indirectly, from, asserted against, or incurred
by reason of, resulting in any manner from, or relating in any manner to
(i) the inaccuracy in any respect of any representation or warranty, or a
breach of any covenant of Purchaser contained in this Agreement; (iii)
any misrepresentation in, or omission of a material fact from, any
opinion, certificate or instrument of transfer or conveyance to be
furnished to Seller by or on behalf of Purchaser under this Agreement;
or (iv) the ownership or use of the Real Property on or after the Closing
Date.
6.3. Expiration of Indemnification Obligations. The respective
representations, warranties, covenants, and agreements of the Parties
made in this Agreement and all related transaction documents will
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survive the Closing for a period of one (1) year from the Closing Date
("Survival Period"). The foregoing notwithstanding, none of the
provisions set forth in this Agreement, including but not limited to the
provisions contained in this Section, shall be deemed to limit the time
period during which a claim based on a Party's fraud (whether of
commission or omission), criminal conduct, or intentional wrongdoing,
or a claim for breach of any covenant, may be brought.
7. Default. If Seller wrongfully refuses to close the sale of the Real Property to
Purchaser or is unable to close the sale of the Real Property under the terms of this Agreement,the
same shall constitute a breach of this Agreement and Purchaser shall be entitled to all remedies
under Illinois law or equity at the time of the breach, including, without limitation, breach of
contract; termination of this Agreement and return of the Earnest Money; specific performance,
with the rights, but not the obligation, to perform Seller's covenants and agreements under this
Agreement and to deduct the cost and expense of such performance from the Purchase Price
payable under this Agreement; and the right to recover as an element of its damages, reasonable
attorneys fees and court costs and all other damages that Purchaser will suffer as a result of Seller's
breach or default under this Agreement. If Purchaser wrongfully refuses to close the sale of the
Real Property to Purchaser or is unable to close the sale of the Real Property under the terms of
this Agreement, the same shall constitute a breach of this Agreement and Seller shall be entitled
to all remedies under Illinois law or equity at the time of the breach, including, without limitation,
breach of contract;termination of this Agreement and retention of the Earnest Money as liquidated
damages; specific performance, with the rights, but not the obligation, to perform Seller's
covenants and agreements under this Agreement and to deduct the cost and expense of such
performance from the Purchase Price payable under this Agreement; and the right to recover as an
element of its damages, reasonable attorneys fees and court costs and all other damages that
Purchaser will suffer as a result of Seller's breach or default under this Agreement.
8. Assignment. Seller shall not assign this Agreement without prior written consent of
the Purchaser. At any time prior to or on the Date of Closing, Purchaser may assign this Agreement
without the prior written consent of the Seller.
9. Casualty. Intentionally omitted.
10. Condemnation. If any portion or portions of the Real Property shall be taken by
condemnation or any other proceeding in the nature of eminent domain from and after the Effective
Date, Purchaser, within fifteen (15) days after Purchaser receives notice of such taking, shall be
entitled to declare this Agreement null and void upon fifteen (15) days' written notice to Seller.
In the event of termination, the parties shall have no further rights or liabilities under this
Agreement and the Earnest Money shall be returned to Purchaser. If Purchaser has not notified
Seller of its election to terminate within the aforesaid time period, this Agreement shall continue
in full force and effect and there shall be no abatement of the Purchase Price. Seller shall be
relieved, however, of the duty to convey title to the portion or portions of the Real Property so
taken, but Seller shall, at Closing, assign to Purchaser all of Seller's rights and claims in and to
any unpaid awards arising from such taking and credit to Purchaser on account of the Purchase
11
Price all awards therefor collected by Seller (less all reasonable costs and expenses, including,
without limitation, attorneys fees, expenses and court costs incurred by Seller to collect such
awards).
12. Miscellaneous. It is further understood and agreed as follows:
12.1. MANDATORY ILLINOIS' RESIDENTIAL REAL PROPERTY
DISCLOSURE ACT: The Illinois Residential Real Property Disclosure Act requires
Sellers of residential real property (unless newly constructed and not previously occupied)
to provide Purchaser with a prescribed Residential Real Property Disclosure Report. Seller
certifies that there have been no material changes since Seller executed the disclosure
report.In addition,Seller shall promptly notify Purchaser in writing of any material defects,
of which Seller becomes aware, in the Premises until the date of possession.
J�A (Initial)Purchaser acknowledges he has received a copy of the Residential Real
operty Disclosure Report along with this Agreement.
12.2. MANDATORY RADON DISCLOSURE: Illinois law requires Seller to
co lete the Disclosure of information on Radon Hazards.
(Initial) Purchaser acknowledges he has received a copy of the Illinois
Emergency Management Agency's "Radon Testing Guidelines for Real Estate
Transactions"and the Illinois Disclosure of Information on Radon Hazards along with this
Agreement.
12.3. MANDATORY LEAD-BASED PAINT DISCLOSURE: Federal law
requires Sellers must complete the Disclosure of Information and Acknowledgment of
Lead-Based Paint and/or Lead-Based Paint Hazards and agree that Purchaser, at
Purchaser's expense, may have the property inspected for the presence of lead-based paint
and/ r lead-based paint hazards.
(Initial) Purchaser acknowledges he has received a copy of the Disclosure of
In ormation and Acknowledgment of Lead-Based Paint and/or Lead-Based Paint Hazards
and the U.S. Environmental Protection Agency's pamphlet entitled, "Protect Your Family
From Lead in Your Home,"along with this Agreement.
12.4. Counterparts. This Agreement may be executed in any number of
counterparts, each of which shall be an original, and such counterparts together shall
constitute one and the same instrument.
12.5. Survival. The representations, warranties, covenants and agreements
contained in this Agreement shall survive the Closing and the delivery of the deed without
limitation.
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l 2.6. Severability. If any provision of this Agreement shall be held to be void or
unenforceable for any reason, the remaining terms and provisions of this Agreement shall
not be affected thereby.
12.7. Time. Time is of the essence of this Agreement.
12.8. Binding Effect. The provisions of this Agreement shall inure to the benefit
of and bind the successors and assigns of the parties to this Agreement.
12.9. Amendment and Waiver. This Agreement may be amended at any time in
any respect only by an instrument in writing executed by Seller and Purchaser. Either party
may waive any requirement to be perfonned by the other under this Agreement, provided
that said waiver shall be in writing and executed by the party waiving the requirement.
12.10. Integrated Agreement. This Agreement constitutes the entire agreement
between Purchaser and Seller relating to the purchase of the Real Property, and there are
no agreements, understandings, restrictions, warranties or representations between
Purchaser and Seller other than those set forth in this Agreement.
12.11. Choice of Law. THIS AGREEMENT SHALL BE GOVERNED BY AND
CONSTRUED AND ENFORCED IN ACCORDANCE WITH THE INTERNAL LAWS
AND JUDICIAL DECISIONS OF THE STATE OF ILLINOIS.ANY DISPUTE ARISING
OUT OF OR RELATING TO THIS AGREEMENT SHALL BE RESOLVED A NON-
JURY TRIAL AND EACH PARTY HERETO HEREBY WAIVES ITS RIGHT TO A
TRIAL BY JURY, AND SUCH NON-JURY TRIAL SHALL BE HELD IN THE STATE
OF ILLINOIS IN EITHER THE CIRCUIT COURT OF FULTON COUNTY, ILLINOIS
OR THE UNITED STATES DISTRICT COURT FOR THE CENTRAL DISTRICT OF
ILLINOIS.
12.12. Notices. All notices,requests,consents and other communications required
or permitted under this Agreement shall be in writing (including email) and shall be (as
elected by the person giving such notice) hand delivered by messenger or courier service,
emailed, or mailed by registered or certified mail (postage prepaid), return receipt
requested, addressed to:
If to Seller: With a copy to:
William Ashwood Nancy Schell
617 W. Chestnut Street Froehling, Weber& Schell, LLP
Canton, IL 61520 167 W. Elm Street
Canton, IL 61520
nschell@fwslawyers.com
If to Purchaser: With a copy to:
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City of Canton Christopher J. Jump
ATTN: Mayor Davis & Campbell L.L.C.
2 N. Main Street 401 Main Street, Suite 1600
Canton, IL 61520 Peoria, IL 61602
kmcdowell(cucantoncityhail.or ci iump(iudcamplaw.com
or to such other address as any party may designate by notice complying with the terms of
this paragraph. Each such notice shall be deemed delivered (a) on the date delivered if by
personal delivery; (b)on the date of transmission with a sent confirmation if by email; and
(c)on the date upon which the return receipt is signed or delivery is refused, or the notice
is designated by the postal authorities as not deliverable, as the case may be, if mailed.
12.13. Waiver of Tender. Formal tender of an executed deed and the Purchase
Price each is hereby waived.
12.14. Delivery by Facsimile or PDF. This Agreement, the agreements referred to
in this Agreement, and each other agreement or instrument entered into in connection with
this Agreement, to the extent signed and delivered by means of emailed PDF, shall be
treated in all manner and respects as an original agreement or instrument and shall be
considered to have the same binding legal effect as if it were the original signed version
thereof delivered in person. No party to this Agreement or to any such agreement or
instrument shall raise the use of email to deliver a signature or the fact that any signature
or agreement or instrument was transmitted through the use of email as a defense to the
formation or enforceability of a contract and each such party forever waives any such
defense.
(SIGNATURE PAGE TO FOLLOW1
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IN WITNESS WHEREOF, the parties have caused this Agreement to be executed, as of
the day and year first above written.
SELLER: PURCHASER:
William Ashwood City of Canton
By: `L) By:
William Ashwoo ent A. McD ell, Its Mayor
EXHIBIT A
The East 74.22 feet of Lots Numbered Seven(7)and Eight(8) in Homewood Addition to the
City of Canton, situated in the County of Fulton, in the State of Illinois.
Common Address: 603 W. Chestnut Street, Canton, IL 61520
PIN: 09-08-28-408-023
•auox
g llgIHXa
AGREEMENT FOR PURCHASE AND SALE OF REAL PROPERTY
THIS AGREEMENT FOR PURCHASE AND SALE OF REAL PROPERTY (this
"Agreement") is made and entered into as of September 29, 2025 ("Effective Date"), by and
between the City of Canton, an Illinois municipal corporation ("Purchaser"), and William
Ashwood ("Seller"; and together with Purchaser, collectively, the "Parties").
WHEREAS, Purchaser desires to purchase real property, improvements, fixtures, and
appurtenances thereto belonging and certain personal property described in Section 1 below, and
in connection therewith, Seller and Purchaser desire to enter into this Agreement to set forth the
terms and conditions of such purchase and sale.
NOW, THEREFORE, in consideration of the mutual promises, covenants and conditions
contained in this Agreement and other good and valuable consideration,the receipt and sufficiency
of which are acknowledged, the parties agree as follows:
1. Sale Agreement.
1.1 Subject to the terms and conditions hereinafter set forth, Seller agrees to sell and
convey and Purchaser agrees to purchase the following:
1.1.1 the certain tracts or parcels of land locatd at 603 W.Chestnut Street,Canton,
IL 61520 (P.I.N. 09-08-28-408-023), more particularly described on
Exhibit A attached hereto and made a part hereof(the "Land'), together
with all and singular the rights and appurtenances pertaining to such
property, including any right, title and interest of Seller, if any, in and to
minerals, adjacent streets, alleys or rights-of-way;
1.1.2 the buildings and other improvements on the Land (the "Improvements")
(the Land and Improvements may hereinafter collectively be referred to as
the "Real Property");
1.1.3 the personal property and all rights thereto listed in Exhibit B (the"Personal
Property").
1.2 Seller shall convey merchantable title to the above-described property to Purchaser
by (1) a general warranty deed conveying the Real Property, free and clear of all liens and
encumbrances, and not subject to any easements, covenants, restrictions, dedications or rights of
way, or other matters affecting title to the Real Property or use of the Real Property, except for
those title exceptions accepted by Purchaser pursuant to Sections 3.1 and 3.2 of this Agreement
(the '`Permitted Exceptions"); and (2) a Bill of Sale conveying the Personal Property to Purchaser
(or its designee) free and clear of all liens and encumbrances (if any).
1
2. Purchase Price. The purchase price of the Real Property ("Purchase Price") shall
be Ten Thousand and No/100 Dollars (S10,000.00), to be paid by Purchaser to Seller at Closing,
plus or minus credits and prorations provided for in this Agreement, in cash or by certified,
cashier's or escrowee check or bank wire transfer of collected federal funds.
Prior to or at Closing, the Seller and Purchaser shall mutually agree upon the allocation of
the Purchase Price to the Real Property and Personal Property (if any). In the event the parties are
unable to agree upon said allocation, the Purchaser's accountant shall establish the allocation of
the Purchase Price for the Real Property and Personal Property, respectively.
3. Conditions Precedent- Purchaser.
Purchaser's obligations under this Agreement shall be subject to the conditions precedent
identified in this Section being satisfied to the reasonable satisfaction of Purchaser, in Purchaser's
sole discretion (or waived by Purchaser in writing). If all of the conditions set forth in this Section
are not satisfied(or waived by Purchaser in writing)on or before sixty(60)days from the Effective
Date, or the earlier or later date identified with respect to each specific condition precedent below,
or Purchaser elects to terminate this Agreement for any other reason on or before sixty (60) days
of the Effective Date (collectively, the "Due Diligence Period"), then Purchaser may terminate
this Agreement and obtain an immediate return of the Earnest Money(if any). In the event of any
termination, the parties shall have no further rights or liability under this Agreement.
3.1. Title Commitment and Policy. If not already issued at the time of this
Agreement, Seller, at Purchaser's sole cost and expense, shall have fifteen (15) days from
the Effective Date to provide Purchaser with a title commitment ("Title Commitment")
for the most current ALTA form Owner's Title Insurance Policy ("Title Policy"), issued
by Advocus National Title Insurance Company(through Froehling, Weber& Schell,LLP)
("Title Insurer"),covering the Real Property in the amount of the Purchase Price showing
merchantable record title to the Real Property to be in Seller. At Closing, Seller shall cause
Title Insurer to issue the Title Policy to Purchaser (in accordance with the Title
Commitment provided for in this Section 3.1), with all general exceptions deleted or
endorsed over (including without limitation possession, encroachments, overlaps,
boundary line disputes, matters of survey, easements, mechanic liens and taxes or special
assessments not shown as existing by the public records exceptions), subject only to the
Permitted Exceptions and other matters approved or waived in writing by Purchaser.
3.1.1. Objections to Title of Record. Within fifteen (15) days after
Purchaser's receipt of the aforesaid Title Commitment, Purchaser shall furnish to
Seller written notification of any objections to or defects in title of record set forth
in the Title Commitment. If Purchaser fails to give said notice within said fifteen
(15) day period, Purchaser shall be deemed to have accepted all matters then
affecting title to the Real Property set forth in the Title Commitment. If Purchaser
does give said notice, Purchaser shall be deemed to have accepted all matters set
forth in the Title Commitment not set forth in the notice (provided Purchaser shall
not be deemed to have waived any general exceptions). After receipt of said notice,
2
Seller shall have the right, at its election, to endeavor to cure such objections to or
defects in title set forth in the notice and shall notify Purchaser of such election
within ten (10) days. If Seller does elect to endeavor to cure such objections to or
defects in title, it shall promptly commence and diligently pursue efforts to cure
such objections.
3.1.2. Failure to Cure Objections. In the event Seller fails to cure
Purchaser's objections to or defects in title within twenty (20) days of receiving
notice of such objections to or defects in title, or if Seller shall determine that its
efforts to cure will not be successful, Purchaser may either (i) waive such title
objections to or defects in title and proceed with closing hereunder or(ii)terminate
this Agreement as provided herein and obtain an immediate return of the Earnest
Money.
3.2. ALTA Survey. Purchaser, at Purchaser's sole cost and expense, shall be
permitted to obtain a current ALTA survey of the Real Property ("ALTA Survey"),to be
certified by a professional surveyor licensed by the State of Illinois to Purchaser and Title
Insurer (and other parties designated by Purchaser) and prepared in accordance with the
standard for Land Title Surveys and the American Congress of Surveying and Mapping
Class A survey, setting forth the legal description and street address of the Real Property
and showing all buildings and other improvements (including fences) located on the Real
Property,the number of stories in such buildings, easements(visible or recorded),building
lines,curb cuts,party walls(if any),parking,sewage,water,electricity,gas and other utility
facilities(together with recording information concerning the documents creating any such
easements and building lines), roads and other rights-of-way and means of physical and
record ingress and egress to and from the Real Property by public roads (including the
dimension of abutting streets) and the net (after deduction of land dedicated or used or
subject to easements for roads, highways, fire lanes, utilities, storm drains or any other
public purpose) and gross area of the land included in the Real Property, and spotting
improvements on adjoining property which are within five(5) feet of the property lines of
the Real Property. In exercising this right, Purchaser, its surveyor or other agents shall be
permitted to enter the Real Property in accordance with the provisions of Section 3.7 of
this Agreement to conduct such survey as Purchaser, in its discretion, determines to be
necessary. Alternatively, Purchaser, at Purchaser's sole cost and expense, shall also be
permitted to obtain a current boundary survey of the Real Property(`Boundary Survey"),
to be certified by a professional surveyor licensed by the State of Illinois to Purchaser.The
ALTA Survey and/or Boundary Survey may collectively be referred to as the"Survey."
3.2.1. Objections to Title of Record. Within fifteen (15) days after
Purchaser's receipt of the Survey, Purchaser shall furnish to Seller written
notification of any objections to or defects set forth in title or the Survey. If
Purchaser fails to give said notice within said fifteen (15) day period, Purchaser
shall be deemed to have accepted all matters then affecting title to the Real Property
set forth in the Survey (except those matters that were also identified in the Title
Commitment and to which Purchaser has previously objected). If Purchaser does
3
give said notice, Purchaser shall be deemed to have accepted all matters set forth in
the Survey not set forth in the notice(except those inatters that were also identified
in the Title Commitment and to which Purchaser has previously objected). After
receipt of said notice, Seller shall have the right, at its election, to endeavor to cure
such objections to or defects in title or the Survey set forth therein and shall notify
Purchaser of such election within ten (10) days. If Seller does elect to endeavor to
cure such objections to or defects in title or the Survey,it shall promptly commence
and diligently pursue efforts to cure such objections.
3.2.2. Failure to Cure Objections. In the event Seller fails to cure
Purchaser's objections to or defects in the Survey or title set forth in the Survey
within twenty (20) days of receiving notice of such objections to or defects, or if
Seller shall determine that its efforts to cure will not be successful, Purchaser may
either(i) waive such title objections to or defects in title or the Survey and proceed
with closing hereunder or (ii) terminate this Agreement as provided herein and
obtain an immediate return of the Earnest Money.
3.3. Environmental Audit. Purchaser, at Purchaser's sole cost and expense,
shall be permitted to conduct an environmental audit of the Real Property. Purchaser or its
engineer or other agents shall be permitted to enter the Real Property in accordance with
the provisions of Section 3.7 of this Agreement to conduct such samplings and tests of the
surface, subsurface and improvements as Purchaser, in its discretion, determines to be
necessary. At any time prior to Closing,Purchaser may (i)waive any environmental issues
set forth in the environmental audit(or reports generated thereby)and proceed with closing
hereunder;(ii)terminate this Agreement as provided herein and obtain an immediate return
of the Earnest Money; or(iii) extend Closing to a date reasonably necessary for Purchaser
to complete its environmental audit(including the review of any reports generated thereby)
and determine whether it desires to proceed with closing or terminate this Agreement as
provided herein and obtain an immediate return of the Earnest Money.
3.4. Appraisal. Purchaser, at Purchaser's sole cost and expense, shall be
permitted to obtain an appraisal of the Real Property. Purchaser or its appraiser or other
agents shall be permitted to enter the Real Property in accordance with the provisions of
Section 3.7 of this Agreement to conduct such inspections as Purchaser, in its discretion,
determined to be necessary. Notwithstanding the foregoing, nothing in this Section 3.4
shall affect the purchase price in the event the appraisal obtained by Purchaser under this
Section 3.4 is less than the purchase price.
3.5 Financing. Intentionally Omitted.
3.6 Zoning/Approvals. Intentionally Omitted.
3.7. Inspection. Purchaser, its employees, agents, representatives and
independent contractors shall have the right to enter upon the Real Property at any
reasonable time during normal business hours and make all tests or inspections of the Real
4
Property(whether within or without the building or improvements)that they desire to make
at Purchaser's sole cost and expense. Such tests and inspections shall not unreasonably
interfere with Seller's business operations. Purchaser shall forever fully protect,defend and
hold the Seller harmless from all reasonable losses, costs, damages, attorneys' fees and
expenses of every kind and nature whatsoever which the Seller may suffer, expend or incur
and which arise out of, relate to, or are in any way connected with the Purchaser's due
diligence activities pursuant to this Section 3.7. Further, the Purchaser shall, within seven
(7) days of recordation, pay and discharge of record or bond over all mechanics' and
materialmen's liens which arise out of, relate to, or are in any way connected with the
Purchaser's due diligence activities.
3.8. Additional Due Diligence Materials. Within ten (10) business days of the
Effective Date, Seller shall tender to Purchaser any and all prior title commitments or
policies, surveys, environmental reports, zoning reports, studies,reports,plans, foreclosure
documents, and contracts related to or affecting the Real Property ("Prior Due Diligence
Materials") in Seller's possession or control, if any.
4. Closing. The purchase of the Real Property shall be consummated as follows:
4.1. Closing Date. Unless otherwise agreed to in writing or extended pursuant
to the terms of this Agreement, the closing (the "Closing") shall take place on or before
fifteen (15) days after the expiration of the Due Diligence Period (the "Closing Date" or
"Date of Closing").
4.2. Seller's Deliveries. At Closing, Seller shall deliver to Purchaser the
following:
4.2.1. Deed. Executed warranty deed to the Real Property (in the form
required by Section I of this Agreement) prepared by Purchaser and in a form
reasonably acceptable to Purchaser.
4.2.2. Evidence of Authorization. Evidence satisfactory to Purchaser and
Title Insurer that Seller is authorized to execute this Agreement and proceed with
the transactions provided for in this Agreement.
4.2.3. Title Policy. The Title Policy provided for in Section 3.1 of this
Agreement.
5
4.2.4 Termination of Leases and Other Agreements. Fully executed
terminations of any leases, service contracts, and/or other agreements affecting the
Real Property, if any.
4.2.5 FIRPTA Statmenet. Fully executed FIRPTA statement / affidavit
in form satisfactory to Purchaser.
4.2.6 Other Documents. Such other documents, instruments,
certifications and confirmations as may be reasonably required by Purchaser or
Title Insurer to fully effect and consummate the transactions contemplated by this
Agreement.
4.3. Purchaser's Deliveries. At Closing, Purchaser shall deliver to Seller the
following:
4.3.1. Purchase Price. The Purchase Price as set forth in Section 2 of this
Agreement, reduced by the Earnest Money, plus or minus prorations provided for
in this Agreement.
4.3.2. Evidence of Authorization. Evidence satisfactory to Seller and Title
Insurer that Purchaser is authorized to execute this Agreement and proceed with the
transactions provided for in this Agreement.
4.3.3. Other Documents. Such other documents, instruments,
certifications and confirmations as may reasonably be required by Seller or Title
Insurer to fully effect and consummate the transactions contemplated by this
Agreement.
4.4. Joint Deliveries. At Closing, Seller and Purchaser shall jointly deliver to
each other the following:
4.4.1. Closing Statement: An agreed-upon closing statement.
4.4.2. Transfer Tax Filings. Executed documents complying with the
provisions of all federal, state,county,and local law applicable to the determination
of transfer taxes.
4.4.3. ALTA Statement. If required by Title Insurer, an ALTA Statement
in the form required by Title Insurer.
4.5. Possession. Sole and exclusive possession of the Real Property shall be
delivered to Purchaser on the Closing Date.
4.6. Property Taxes.
6
4.6.1. Payments by Seller. All installments of real property taxes on the
Real Property which are due and owning on or prior to the Closing Date shall be
paid by Seller prior to or at Closing.
4.6.2. Credits to Purchaser. Purchaser shall receive a credit against the
Purchase Price for all installments of real property taxes on the Real Property for
the calendar year immediately preceding the Closing Date which are not yet due
and owning as of the Closing Date. If the tax bill for the calendar year immediately
preceding the Closing Date is not yet available, then the credit shall be computed
on 110% of the latest available assessment. Real property taxes for the calendar
year of the Closing shall be prorated from January 1 of such calendar year to the
Closing Date based on 110%of the latest available assessment, and Purchaser shall
receive an additional credit against the Purchase Price for the amount so calculated.
4.7. Closing Costs. Seller shall pay the following costs: Seller's attorney's fees.
Purchaser shall pay the following costs: Purchaser's attorney's fees, fees incurred in
preparation of the Survey, fees incurred in performing due diligence, any city transfer or
sales taxes (if any), the insurance premium for the title policy issued pursuant to the
commitment for title insurance required by Section 3.1 of this Agreement, brokerage
commissions or consultant fees set forth in Section 4.8 of this Agreement, any county and
state transfer taxes or sales taxes, and the cost of documentary stamps, and recording fees
for recording the deed. Except as otherwise provided in this Agreement, Purchaser shall
pay any costs charged by the Title Insurer for closing.
4.8. Brokerage Commissions. There are no brokererage or consultant fees or
commissions due in relation to this Agreement. Seller and Purchaser shall indemnify and
hold harmless the other from any loss, liability, cost and expenses, including attorney's
fees, arising from the breach of the foregoing representations in this Section 4.8.
4.9. Special Assessments. Seller will pay any unpaid special assessments
confirmed prior to the Closing Date. Seller knows of no proceeding for special assessments
against the Real Property.
5. Seller's Representations, Warranties and Covenants. In addition to all other
representations, covenants and warranties by Seller in this Agreement,Seller represents,covenants
and warrants, as of the Effective Date and as of the Closing Date, as follows:
5.1. Ownership. Seller owns the property in fee simple absolute and will convey
good and indefeasible market title to the Property, free and clear of any liens or other
encumbrances except for the Permitted Exceptions. Seller has full right, power and
authority to enter into this Agreement and to consummate the sale contemplated hereby
without the joinder of any other person, and the party signing on behalf of Seller has been
duly authorized to sign on behalf of Seller. The execution, delivery and performance of
this Agreement have been duly authorized and no other action, consent, or approval of
Seller or any other person or entity is necessary. This Agreement has been duly executed
7
and delivered by Seller, and this Agreement is a valid and binding obligation of Seller,
enforceable against it in accordance with its terms.
5.2. Leases and Other Rights in Real Property. As of the Closing Date, Seller
will have the right to possession of all of the Real Property, and there will be no third party
with the right to possession of any portion of the Real Property, whether pursuant to a
written lease (including any option to extend a written lease), an oral lease, license, or as
otherwise may be provided by law. There is no agreement affecting or restricting the
Property, including its usage and development, and so long as this Agreement is in force
Seller will not enter into any agreements affecting the Property without the prior written
approval of Purchaser, in Purchaser's sole discretion.
5.3. Liens and Liabilities. Seller shall be responsible for all debts, claims,
contracts and liabilities in any way connected with the conduct of its operations on the Real
Property, and Purchaser shall have no liability for Seller's obligations or operations
conducted on the Real Property or otherwise or for any liabilities, known, unknown,
contingent or otherwise, of Seller. No portion of the Property is affected by any special
assessments, whether or not constituting a lien thereon. Except the lien for real estate taxes
not yet due at Closing, Seller will pay any and all liens so that the Property shall not be
encumbered by any lien imposed prior to the Closing.
5.4. Litigation. There are no legal actions, suits, proceedings or claims pending
or to the best of Seller's knowledge threatened, against or with respect to Seller or the
Property, and Seller is not aware of any facts which might result in any such action, claim,
suit or proceeding. Seller is not subject to any judgment,order or decree entered in any suit
or proceeding which will have an effect on the Property. There are no pending or, to best
of seller's knowledge,threatened condemnation or similar proceeding or rezoning affecting
the Property or any portion thereof, nor has Seller knowledge that any such action is
presently contemplated.
5.5. Governmental Regulation. The Real Property complies in all respects with
all statutes, ordinances, regulations and administrative or judicial orders or holdings,
whether or not appearing in public records, and the consummation of the transactions
contemplated by this Agreement shall not violate any such statutes,ordinances,regulations
and administrative or judicial orders or holdings or any other agreement or indenture by
which Seller is bound.
5.6. Hazardous Substances. No toxic waste or hazardous waste material have
been stored or used on the Real Property and there is no toxic waste or hazardous material
on or under the Real Property in violation of any applicable laws, rules, regulations or
Ordinances. Seller shall promptly furnish Purchaser with a copy of any and all
environmental reports and any certificates of compliance in Seller's possession, with the
Prior Due Diligence Materials, which are not otherwise subject to any restriction on
disclosure or are otherwise legally privileged.
8
5.7. Non-Foreign Person/Taxes. Seller is not a"foreign person"as that term is
used and defined in the Internal Revenue Code,Section 1445,as the same may be amended.
Seller also agrees that Seller as transferor will indemnify Purchaser as transferee and agrees
to hold Purchaser harmless from any liability or cost which Purchaser may incur as a result
of (i) Seller's failure to pay any U.S. federal income tax which Seller is required to pay
under applicable U. S. law, or (ii) any false or misleading statement contained in the
non-foreign affidavit.
5.8. No Breach. No default has occurred under any document affecting the
Property nor has Seller made any false or misleading representation or warranty to
Purchaser or any other person or entity in connection with the transaction contemplated by
this Agreement.
5.9. OFAC. Seller and all beneficial owners of Seller are in compliance with all
laws, statutes,rules and regulations of any federal, state or local governmental authority in
the United States of America applicable to such Persons (defined below), including,
without limitation, the requirements of Executive Order No. 13224, 66 Fed. Reg. 49079
(Sept. 25, 2001) (the "Order") and other similar requirements contained in the rules and
regulations of the Office of Foreign Asset Control, Department of the Treasury ("OFAC")
and in any enabling legislation or other Executive Orders in respect thereof(the Order and
such other rules, regulations, legislation, or orders are collectively called the "Orders".
Neither Seller nor any beneficial owner of Seller: (i)is listed on the Specially Designated
Nationals and Blocked Persons List maintained by OFAC pursuant to the Order and/or on
any other list of terrorists or terrorist organizations maintained pursuant to any of the rules
and regulations of OFAC or pursuant to any other applicable Orders (such lists are
collectively referred to as the "Lists"); (ii) is a Person who has been determined by
competent authority to be subject to the prohibitions contained in the Orders; (iii)is owned
or controlled by, nor acts for or on behalf of, any Person on the Lists or any other Person
who has been determined by competent authority to be subject to the prohibitions contained
in the Orders. As used herein, the term "Person" means any individual, corporation,
partnership,joint venture, association,joint stock company, trust, trustee, estate, limited
liability company,unincorporated organization,real estate investment trust,government or
any agency or political subdivision thereof, or any other form of entity.
5.10. Casualty Insurance. Until Closing and unless otherwise agreed by the
parties, Seller shall, at its expense, keep the Real Property and the improvements on the
Real Property and Personal Property constantly insured with an insurance company
acceptable to Purchaser against loss by fire and other casualties with extended coverage in
the same amounts as currently carried by Seller as of the Effective Date.
Each of Seller's representations and warranties contained in this Section 5 shall be true and
correct upon the execution of this Agreement and shall be deemed to be remade on and as of the
Closing Date and shall survive the Closing hereunder for a period of twenty four(24)months.
9
Residential Disclosures Intentionally Omitted.
6. Indemnity.
6.1. Indemnification by Seller. Seller shall indemnify, defend, and hold
harmless Purchaser, its affiliates and subsidiaries, and their respective
owners, general partners, partners, managers, members, controlling
persons, directors, officers, employees, agents, attorneys, and their
successors and assigns (collectively, the "Purchaser Indemnified
Parties") from and against,and pay to Purchaser Indemnified Parties the
amount of, all losses, claims, obligations, demands, assessments,
penalties, fines, forfeitures, liabilities, costs, and other damages,
including reasonable attorneys' fees and expenses, whether or not
involving a third-party claim (collectively, "Losses"),arising,directly or
indirectly, from, asserted against or incurred by reason of, resulting in
any manner from, or relating in any manner to (i) the inaccuracy in any
respect of any representation or warranty, or a breach of any covenant of
Seller contained in this Agreement; (ii) any obligations, liabilities or
charges of Seller not expressly assumed by Purchaser except to the extent
that Purchaser receives a credit therefor on the closing statement; (iii)
any misrepresentation in, or omission of a material fact from, any
opinion, certificate or instrument of transfer or conveyance to be
furnished to Purchaser by or on behalf of Seller under this Agreement;
or (iv) the ownership or use of the Real Property prior to the Closing
Date.
6.2. Indemnification by Purchaser. Purchaser shall indemnify, defend, and
hold harmless Seller and Seller's owners, controlling persons, directors,
officers, employees, agents, attorneys, and affiliates and their successors
and assigns (collectively, the "Seller Indemnified Parties;"and together
with Purchaser Indemnified Parties,the"Indemnified Parties")from and
against, and pay to the Seller Indemnified Parties the amount of, all
Losses arising, directly or indirectly, from, asserted against, or incurred
by reason of, resulting in any manner from, or relating in any manner to
(i) the inaccuracy in any respect of any representation or warranty, or a
breach of any covenant of Purchaser contained in this Agreement; (iii)
any misrepresentation in, or omission of a material fact from, any
opinion, certificate or instrument of transfer or conveyance to be
furnished to Seller by or on behalf of Purchaser under this Agreement;
or (iv) the ownership or use of the Real Property on or after the Closing
Date.
6.3. Expiration of Indemnification Obligations. The respective
representations, warranties, covenants, and agreements of the Parties
made in this Agreement and all related transaction documents will
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survive the Closing for a period of one (1) year from the Closing Date
("Survival Period"). The foregoing notwithstanding, none of the
provisions set forth in this Agreement, including but not limited to the
provisions contained in this Section, shall be deemed to limit the time
period during which a claim based on a Party's fraud (whether of
commission or omission), criminal conduct, or intentional wrongdoing,
or a claim for breach of any covenant, may be brought.
7. Default. If Seller wrongfully refuses to close the sale of the Real Property to
Purchaser or is unable to close the sale of the Real Property under the terms of this Agreement,the
same shall constitute a breach of this Agreement and Purchaser shall be entitled to all remedies
under Illinois law or equity at the time of the breach, including, without limitation, breach of
contract; termination of this Agreement and return of the Earnest Money; specific performance,
with the rights, but not the obligation, to perform Seller's covenants and agreements under this
Agreement and to deduct the cost and expense of such performance from the Purchase Price
payable under this Agreement; and the right to recover as an element of its damages, reasonable
attorneys fees and court costs and all other damages that Purchaser will suffer as a result of Seller's
breach or default under this Agreement. If Purchaser wrongfully refuses to close the sale of the
Real Property to Purchaser or is unable to close the sale of the Real Property under the terms of
this Agreement, the same shall constitute a breach of this Agreement and Seller shall be entitled
to all remedies under Illinois law or equity at the time of the breach,including,without limitation,
breach of contract;termination of this Agreement and retention of the Earnest Money as liquidated
damages; specific performance, with the rights, but not the obligation, to perform Seller's
covenants and agreements under this Agreement and to deduct the cost and expense of such
performance from the Purchase Price payable under this Agreement; and the right to recover as an
element of its damages, reasonable attorneys fees and court costs and all other damages that
Purchaser will suffer as a result of Seller's breach or default under this Agreement.
8. Assiptriment. Seller shall not assign this Agreement without prior written consent of
the Purchaser.At any time prior to or on the Date of Closing,Purchaser may assign this Agreement
without the prior written consent of the Seller.
9. Casualty. Intentionally omitted.
10. Condemnation. If any portion or portions of the Real Property shall be taken by
condemnation or any other proceeding in the nature of eminent domain from and after the Effective
Date, Purchaser, within fifteen (15) days after Purchaser receives notice of such taking, shall be
entitled to declare this Agreement null and void upon fifteen (15) days' written notice to Seller.
In the event of termination, the parties shall have no further rights or liabilities under this
Agreement and the Earnest Money shall be returned to Purchaser. If Purchaser has not notified
Seller of its election to terminate within the aforesaid time period, this Agreement shall continue
in full force and effect and there shall be no abatement of the Purchase Price. Seller shall be
relieved, however, of the duty to convey title to the portion or portions of the Real Property so
taken, but Seller shall, at Closing, assign to Purchaser all of Seller's rights and claims in and to
any unpaid awards arising from such taking and credit to Purchaser on account of the Purchase
11
Price all awards therefor collected by Seller (less all reasonable costs and expenses, including,
without limitation, attorneys fees, expenses and court costs incurred by Seller to collect such
awards).
12. Miscellaneous. It is further understood and agreed as follows:
12.1. MANDATORY ILLINOIS' RESIDENTIAL REAL PROPERTY
DISCLOSURE ACT: The Illinois Residential Real Property Disclosure Act requires
Sellers of residential real property (unless newly constructed and not previously occupied)
to provide Purchaser with a prescribed Residential Real Property Disclosure Report. Seller
certifies that there have been no material changes since Seller executed the disclosure
report. In addition,Seller shall promptly notify Purchaser in writing of any material defects,
of which Seller becomes aware, in the Premises until the date of possession.
(Initial)Purchaser acknowledges he has received a copy of the Residential Real
operty Disclosure Report along with this Agreement.
12.2. MANDATORY RADON DISCLOSURE: Illinois law requires Seller to
co lete the Disclosure of information on Radon Hazards.
(Initial) Purchaser acknowledges he has received a copy of the Illinois
Emergency Management Agency's "Radon Testing Guidelines for Real Estate
Transactions"and the Illinois Disclosure of Information on Radon Hazards along with this
Agreement.
12.3. MANDATORY LEAD-BASED PAINT DISCLOSURE: Federal law
requires Sellers must complete the Disclosure of Information and Acknowledgment of
Lead-Based Paint and/or Lead-Based Paint Hazards and agree that Purchaser, at
Purchaser's expense, may have the property inspected for the presence of lead-based paint
and/ r lead-based paint hazards.
(Initial) Purchaser acknowledges he has received a copy of the Disclosure of
In ormation and Acknowledgment of Lead-Based Paint and/or Lead-Based Paint Hazards
and the U.S. Environmental Protection Agency's pamphlet entitled, "Protect Your Family
From Lead in Your Home,"along with this Agreement.
12.4. Counterparts. This Agreement may be executed in any number of
counterparts, each of which shall be an original, and such counterparts together shall
constitute one and the same instrument.
12.5. Survival. The representations, warranties, covenants and agreements
contained in this Agreement shall survive the Closing and the delivery of the deed without
limitation.
12
12.6. Severability. If any provision of this Agreement shall be held to be void or
unenforceable for any reason, the remaining terms and provisions of this Agreement shall
not be affected thereby.
12.7. Time. Time is of the essence of this Agreement.
12.8. Binding Effect. The provisions of this Agreement shall inure to the benefit
of and bind the successors and assigns of the parties to this Agreement.
12.9. Amendment and Waiver. This Agreement may be amended at any time in
any respect only by an instrument in writing executed by Seller and Purchaser. Either party
may waive any requirement to be performed by the other under this Agreement, provided
that said waiver shall be in writing and executed by the party waiving the requirement.
12.10. Integrated Agreement. This Agreement constitutes the entire agreement
between Purchaser and Seller relating to the purchase of the Real Property, and there are
no agreements, understandings, restrictions, warranties or representations between
Purchaser and Seller other than those set forth in this Agreement.
12.11. Choice of Law. THIS AGREEMENT SHALL BE GOVERNED BY AND
CONSTRUED AND ENFORCED IN ACCORDANCE WITH THE INTERNAL LAWS
AND JUDICIAL DECISIONS OF THE STATE OF ILLINOIS.ANY DISPUTE ARISING
OUT OF OR RELATING TO THIS AGREEMENT SHALL BE RESOLVED A NON-
JURY TRIAL AND EACH PARTY HERETO HEREBY WAIVES ITS RIGHT TO A
TRIAL BY JURY,AND SUCH NON-JURY TRIAL SHALL BE HELD IN THE STATE
OF ILLINOIS IN EITHER THE CIRCUIT COURT OF FULTON COUNTY, ILLINOIS
OR THE UNITED STATES DISTRICT COURT FOR THE CENTRAL DISTRICT OF
ILLINOIS.
12.12. Notices. All notices,requests,consents and other communications required
or permitted under this Agreement shall be in writing (including email) and shall be (as
elected by the person giving such notice)hand delivered by messenger or courier service,
emailed, or mailed by registered or certified mail (postage prepaid), return receipt
requested, addressed to:
If to Seller: With a copy to:
William Ashwood Nancy Schell
617 W. Chestnut Street Froehling, Weber& Schell, LLP
Canton, IL 61520 167 W. Elm Street
Canton, IL 61520
nschell@fwslawyers.com
If to Purchaser: With a copy to:
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City of Canton Christopher J. Jump
ATTN: Mayor Davis & Campbell L.L.C.
2 N. Main Street 401 Main Street, Suite 1600
Canton, IL 61520 Peoria, IL 61602
kmcdo«vell (tcantoncit,,hall.or:T ci'lump t dcamplaw.com
or to such other address as any party may designate by notice complying with the terms of
this paragraph. Each such notice shall be deemed delivered (a) on the date delivered if by
personal delivery; (b) on the date of transmission with a sent confirmation if by email; and
(c) on the date upon which the return receipt is signed or delivery is refused, or the notice
is designated by the postal authorities as not deliverable, as the case may be, if mailed.
12.13. Waiver of Tender. Formal tender of an executed deed and the Purchase
Price each is hereby waived.
12.14. Delivery by Facsimile or PDF. This Agreement, the agreements referred to
in this Agreement, and each other agreement or instrument entered into in connection with
this Agreement, to the extent signed and delivered by means of emailed PDF, shall be
treated in all manner and respects as an original agreement or instrument and shall be
considered to have the same binding legal effect as if it were the original signed version
thereof delivered in person. No party to this Agreement or to any such agreement or
instrument shall raise the use of email to deliver a signature or the fact that any signature
or agreement or instrument was transmitted through the use of email as a defense to the
formation or enforceability of a contract and each such party forever waives any such
defense.
[SIGNATURE PAGE TO FOLLOW]
14
IN WITNESS WHEREOF, the parties have caused this Agreement to be executed, as of
the day and year first above written.
SELLER: PURCHASER:
William Ashwood City of Canton
By: Ei ( , J�=By: 14� Q( WA 6%—rJ
William Ashwoo ent 9. Mcl) ell, Its Mayor
EXHIBIT A
The East 74.22 feet of Lots Numbered Seven(7) and Eight(8) in Homewood Addition to the
City of Canton, situated in the County of Fulton, in the State of Illinois.
Common Address: 603 W. Chestnut Street, Canton, IL 61520
PIN: 09-08-28-408-023
•auON
9119IHXH