2011-041 DEAPR - Ferrell Firm PC for Sykes Farm Conservation Easement

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The advantage of a 30-60 year search over the updated search is that it gives you more certainty about the status of your title. Even if the title company agrees to provide you with full coverage and pays for your attorney's fees and damages, you must still endure litigation and uncertainty about the Easement Property ownership rights. A full search, in short, gives additional assurances as to the status of title. A title update takes significantly lets time to complete than a full search. I estimate a full title search will increase the closing costs anywhere from $1,00-$1,500. Regardless of the type of title search selected, I will engage a title abstractor to collect the necessary title documents from the office of the Orange County Register of Deeds. I understand the County desires to engage me to perforxn a title update search for this transaction assuming a suitable prior title insurance policy can be located. Please let me know immediately if this is not the case. The County will be responsible for the payment of the title insurance premium estimated by Investors Title Insurance Company. The premium amount will be determined by the title company based on the coverage amount requested by the County. Please also be aware that matters of zoning and environmental hazards are not included in a standard titie search; hence, if you require additional information from me concerning these issues, please so advise immediately. Zoning laws affect setback and use requirements to name a few. Environmental hazards include, but are not limited to, the existence of radon gas, lead-based paint, underground storage tanks and asbestos. Rich Shaw also informs me the County has engaged a surveyor to prepare a cunent survey of the Easement Property. Closin~ I will prepare a legal description of the Easement Property based on the newly drawn survey to be included as "Exhibit A" to the Warranty Deed of Conservation Easement (the "Easement Deed"). The Easement Deed was drafted, negotiated and executed prior to my involvement in this matter. Therefore, I will not have any responsibility for preparation of the Easement Deed except for the preparation of Exhibit A. I will prepare a closing statement to be executed by the parties. I am willing to conduct the closing in my office located at 209 N. Columbia Street in Chapel Hill, or at another office in Orange County at your convenience. The County agrees to wire all closing funds and attorney's fees into my trust account prior to the closing. I will make every effort to provide the County with a draft of the settlement statement no less than 24 hours prior to the closing date. Following the closing, I will update title and record the deed of easement at the office of the Register of Deeds and prepare a final title opinion. My fee for all work done pursuant to this agreement is as follows: (1) $75.00 dollars per hour for the services of the title abstractor to collect the necessary documents from the office of the Register of Deeds; and (2) $200.00 per hour for the time it takes to review the title abstract documents and prepare the preliminary and final title opinion, draft the legal description and closing statement, conduct the closing and record the Deed of Easement. There will be an additional flat fee charge of $50.00 that will cover all out of pocket expenses for items such as copy fees, courier fees, mileage costs and mailing costs. The County will pay all fees due under this Agreement at the closing. Please note that costs of the survey, environmental reports, insurance premiums, tax stamps, recording fees, etc., are NOT included in the legal fee quoted above. In the event the County requires representation prior to closing or additional legal work not referenced in this letter becomes necessary (such as work associated with clearing any title defects), then I will perform such work at your request at my normal hourly rate of $200 per hour. The total costs for all work performed under this A~reement shall not exceed $4,000.00.