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Home My WebLink AboutA007 - Attorney's Title Opinion dated August 28, 2006 WHITE &ZA]FIFARANO LAW OFFICES AN ASSOCIATION OF SOLE PRACTITIONERS 62 1 MAIN STREET, P.O. Box 1 870 AMES, IowA 500 1 0- 1 870 B. JOAN WHITE TEL. 5 1 5/233-6960 DARIO ZAFFARANO DZATTY@ISUNET.NET FAx. 5 1 5/233-6959 August 28, 2006 Board of Directors Habitat for Humanity of Central Iowa, Inc. 401 Clark Avenue, Suite 100 Ames, IA 50010 re: 3520 South Duff, Parcel No. 09-23-202-130 Dear Gentlemen or Mesdames: At your request we have re-examined the 40-year "stub" abstract of title last certified on June 30, 2006, as continuation no. 0605100814FI to 11:05 a.m. by Abstract & Title Services of Story County, Title Guaranty number 8650, with addendum certificate no. 0605100814AD dated August 25, 2006 at 8:00 a.m., regarding the following described real estate: Commencing One Thousand Two Hundred and Sixty-five and Five Tenths (1,265.5) Feet North and Fifty (50) Feet East of the Center of Section Twenty-three (23), Township Eighty-three (83) North, Range Twenty-four (24) West of the 5th P.M., Ames, Story County, Iowa, thence North One Hundred Twenty (120) Feet, thence East Two Hundred Seventeen and Five Tenths (217.5) Feet, thence South One Hundred Twenty (120), thence West Two Hundred Seventeen and Five Tenths (217.5) Feet to the point of beginning. Said abstract consists of a series of continuations, extending in its entirety from either the original entry or patent. Based thereon, we find merchantable title to said real estate as shown by said abstract to be in Habitat for Humanity of Central Iowa, Inc., subject to the following: 1. Taxes: Entry 28 shows that the first and second installments of real estate taxes on the property payable for the last fiscal year (7/2004-6/2005) in the current fiscal year are paid in full. Dario Zaffarano,Lawyer n ( / Board of Directors August 28, 2006 Page 2 2. Easements: The unnumbered entry following entry #2 sets forth a right-of-way permit and easement for utilities granting Marshall County Rural Electric Cooperative and its successors or assigns the right to construct and maintain electrical utility facilities on the property boundary lines as they exist this date April 3, 1956 as outlined on Emerald and Teagarden I" and 2nd Subdivision Plat. It is not clear from the abstract whether the property in caption lies within or adjacent to the property that may be affected by said easement. Also shown at the second unnumbered entry following entry #2 is an application for an entrance to what is now U.S. Highway 69. The application, approved October 13, 1958, places certain responsibilities upon the owner of the affected property, which may be or lie adjacent to the property in caption. 3. Well agreement: Entry 5 shows a well agreement between persons owning property that may include or be adjacent to the property in caption regarding use of a well, which agreement is binding on the heirs and assigns of the parties to the agreement. 4. Driveway easement and Well agreement: Entry 8 shows an agreement between parties dated September 21, 1987, and filed September 22, 1987, at Book 256, Page 337, revising the original well agreement to provide that the owners of the property in caption are entitled to use and maintain a well at or near the boundary line of the parties' properties (and apparently not on the property in caption.) The agreement also indicates that the use of a driveway used by the neighbor and lying on a portion of the property in caption (specifically, "commencing at the Northwest corner thereof, thence East 50 feet, thence South 25 feet, thence West 50 feet, thence North 25 feet to the point of beginning" is confirmed as an easement "until such time that Culps or their successors in interest establish their access from their property onto the public highway." In other words, it appears that 1250 square feet of the property in caption cannot be used for anything other than driveway. Entry 11 shows that in 1993 a subsequent owner of the property in caption by filing an "Owner's Declaration of Abandonment of Well Agreement and Declaration of Non-Use" attempted to abandon the rights and obligations based on the original well agreement and on the revised well agreement. The effect of the purported abandonment on the rights of the present owner is not clear. 5. Zoning: Entry 21 correctly notes that the property in caption is subject to Dario Zaffarano,Lawyer �� Board of Directors August 28, 2006 Page 3 zoning regulation, but fails to identify what that zoning may be. We cannot state with any certainty from the abstract whether the property may be zoned for residential use, or for any particular purpose for which you may be acquiring the property. CAUTION: An abstract is a multi-page document typically prepared by a commercial abstracting firm. It consists of numbered entries containing information abstracted from the public records on file in the county courthouse that affect the title to the real estate described in the abstract of title. These public records,however, do not necessarily disclose all rights in, claims against or restrictions upon the real estate. Therefore,you should make a careful inspection of the real estate and make diligent inquiry to satisfy yourself as to the following additional matters: • The rights of any person in actual possession of the real estate such as a tenant in possession under a lease agreement. • The existence of any easement over the real estate which is apparent from physical evidence of its use or the actual location of the boundary lines of the real estate. • The availability of reasonable and convenient access to the real estate from an existing public right-of-way. • The existence, location and condition of any boundary fences on the real estate. Boundary fences located on other than the property line can under some conditions actually change the legal property line. Iowa law defines the rights, duties and liabilities of owners of rural real estate with respect to boundary fence lines.* • Any encroachment upon the real estate from adjacent property by way of third party use or by buildings overlapping the boundary lines, and any other facts that may be disclosed by a survey.* • Unpaid charges for public utility services furnished to the real estate which may become a claim against the real estate. • The rights, under the Iowa mechanic's lien law, of persons who have furnished labor or materials within the last 90 days for improvements to the real estate. • Any restrictions as to building, occupancy or usage contained in applicable zoning or other city ordinances. • The legal competency (as affected by age or mental disability) of titleholders executing a deed, mortgage or other legal instrument affecting the real estate; the authority of such person executing a deed, mortgage or other instrument affecting the real estate in a representative or fiduciary capacity; and the authenticity of all signatures appearing on such instruments. • If the property uses either a non-public well or septic system the Seller is required to provide the Buyer with an inspection and laboratory analysis report from the Story County Health *These are matters which can only be satisfactorily determined by a survey. The plat or survey shown in the abstract,if one is shown,normally does not show the location of improvements with respect to the boundary lines. Buyers are encouraged to have a site survey(sometimes referred to as an"as built"survey)done to locate any improvements with respect to the boundary. Dario Zaffarano,Lawyer Q� Board of Directors August 28, 2006 Page 4 Department. You should be aware that if these systems fail to meet health standards and you proceed with the transaction you may subsequently be required to bring the systems into compliance at your expense. • Whether the property may be subject to additional or corrected assessments for real estate taxes by authority of Chapter 443 of the Code of Iowa. • The rights of creditors under the Iowa Uniform Commercial Code to a security interest in improvements in the real estate in the form of fixtures, such as a furnace or water heater, which have been installed so recently as to allow the creditor to file notice of such rights after the period of time covered by the abstract. • The existence of any security interest in growing farm crops on the real estate disclosed by financing statements filed in the office of the Iowa Secretary of State. • Under Iowa law, dissolution of marriage filing is not made public record until the parties have been litigated in court at least 90 days after said filing. You should therefore have assurances that there are no proceedings in dissolution pending. • Any other matter affecting the real estate which may have been filed as a part of the public record in the county courthouse after the period of time covered by this Title Opinion. • To the extent the real estate may include property caused by action of any riparian waters, no opinion is expressed as to the marketability of title including accretions to such real estate. You should determine whether any solid wastes, hazardous substances,pollutants, above or below ground storage tanks, drainage wells,water wells, landfill sites or other environmentally regulated conditions exist on the property. Such conditions are not ordinarily shown in the abstract, but they may result in injunctions, fines, required cleanup, or other remedial actions under federal, state or local laws. These laws may impose liens against the property and personal liability against the owner, even though the owner did nothing to create the condition, and acquired the property without knowing about it. Respectfully submitted, laA—'" Jzx—� Dario Zaffarano Title Guaranty Division member no. 2581 This Title Opinion has been prepared for the sole use of Board of Directors of Habitat for Humanity of Central Iowa, Inc. and no liability for errors or omissions will accrue to the benefit of any other person or entity. Abstract is enclosed with this opinion. Dario Zaffarano,Lawyer 1 �4�