ADDENDUM B

                                             BLUE RIVER PRESERVE

 

 

1        This Addendum is hereby made part of the Offer to Purchase dated__________________, 200__, and

2        Signed by_________________________________________________________________, as Buyer,

3        For the purchase of Lot____, Blue River Preserve, Caledonia, Wisconsin

 

4        Final Plat Approval.  Buyer is aware that the final plat has been recorded.  Document Number 2059736

5        dated November 16, 2005.  Copy of plat is hereby made part of this offer and is attached.  Buyer hereby

6         accepts said final plat.

 

7        Declaration of Easements and Restrictions.  Buyer is aware that the Subdivision is subject to a

8        Declaration of Restrictions (hereinafter “Restrictions”), and Buyer is hereby given a copy of the recorded

9        Restrictions upon the writing of this Offer to Purchase.  Said Restrictions were recorded March 21, 2006,

10     Document Number 2077020.  The Restrictions include the establishment of various easements.  Buyer’s

11     failure to give Seller written notice terminating this contract within five (5) days of acceptance shall be

12     deemed a waiver of this contingency and an acceptance by Buyer of the Restrictions and, if applicable, any

13     amendment or modification thereto.  Buyer understands that the Restrictions may be subject to further

14     amendment after closing, in accordance with the amendment provisions set forth in Section 27

15    (twenty seven) of said Restrictions.

 

15    Architectural Control Committee.  Buyer is aware the Restrictions establish an Architectural Control

16    Committee which must approve home, exterior colors, site survey and other plans prior to start

17    of construction.

 

18    Lampposts, Mailboxes and Posts.  The Restrictions require that all lampposts, mailbox posts and

19    mailboxes be uniform throughout the Subdivision, with specifications determined by the Architectural

20    Control Committee.  Buyer shall pay Seller’s designated supplier(s), at closing, the sum of up to $800.00

21    per lot purchased for the lamppost, mailbox post and mailbox.  Buyer is responsible for pick up and

22    installation.           

 

23    Grading Plan.  Buyer’s obligation to conclude this transaction is contingent upon Buyer’s review and

24    approval of that portion of the Master Grading Plan that includes this lot.  Delivery of the portion of the

25     Master Grading Plan that includes this lot in hereby made with this Offer to Purchase.  In the event Buyer

26     fails to terminate this Offer on the basis of this contingency on or before 5 (five) days after delivery to

27     Buyer of the portion of the Master Grading Plan which includes this lot, this contingency shall automatically

28     be deemed waived, and Buyer shall be deemed to have accepted the Master Grading Plan.  Buyer is aware

29     that completion of subdivision grading by developer may result in removal of trees, shrubs and other

30     vegetation from this Lot.  Buyer is aware that, upon completion of subdivision grading by the developer, the

31     grade on this Lot may be different, by up to approx. 18”, from that shown on the Grading Plan.  This may

32     allow the ground from foundation excavation to be utilized on the Lot, and avoid some of the expense to

33     Buyer of having to truck same off site.  Actual ground available from house construction will vary

34    depending upon foundation size, location of Buyer’s house and existing grade.  Buyer is aware that Buyer

35     may need to bring in additional fill or remove some of the existing ground from the lot in order to establish a

36     proper final grade.

 

 

 

37    Flood Plain, Wetland, etc.  Buyer is aware that some of the lots and outlots in the Subdivision, including

38    possibly the lot which is the subject of this Offer, may include areas which are located in a flood plain,

39    wetland, environmental corridor and/or conservancy area.  Seller warrants and represents to Buyer that, in

40    the event a portion of Buyer’s lot is located within a flood plain, wetland, environmental corridor and/or

41    conservancy area, a sufficient portion of Buyer’s lot is outside of any such area, such that a single family

42    residence can be constructed on Buyer’s lot in accordance with the Restrictions and applicable zoning,

43    outside of any flood plain, wetland, environmental corridor and/or conservancy area.

 

44    Lot Boundaries.  Buyer acknowledges receipt of a copy of that portion of the proposed plat for the

45    Subdivision which includes the lot which is the subject of this Offer.  Buyer is aware of lot corners and has

46     reviewed and approved the actual lot boundaries, on site.  Buyer hereby accepts the lot boundaries. 

 

47    Subsoil Testing and Building Pads.  Subject to Seller’s approval as set forth herein, Buyer shall have the

48    right to conduct such soil tests on the property as Buyer may deem appropriate, at Buyer’s sole cost and

49    expense.  In the event of any such testing, Buyer shall restore the ground surface and the compaction, with

50    verification of compaction by engineer’s report, to the condition immediately prior to such test.  In the event

51    the results of any such testing disclose adverse subsoil conditions which would prohibit the construction of a

52    house with a normal twelve course basement, without extraordinary extra expense, Buyer shall have the

53    right, at Buyer’s sole option, to declare this Offer to Purchase  null and void, and in such event, all earnest

54    money shall be returned to Buyer.  Buyer’s right to conduct soil tests, and Buyer’s right to terminate this

55    Offer pursuant to this  provision, shall be deemed waived unless written notice of termination, together with

56    copies of any such soil tests, are delivered to Seller on or before 45 days after acceptance.  To avoid

57     interference with Seller’s construction of subdivision improvements and to avoid possible damage to the lot

58     by unreasonable or unusual testing procedures, Buyer shall obtain Seller’s written approval prior to

59     proceeding with any such soil testing, which approval shall not be unreasonably withheld.  Buyer is aware

60     that the lot may contain fill, and that subdivision grading is being performed with the intention that home

61     construction on each lot take place within a building pad area  consisting of a strip of land extending from

62     the minimum front yard set-back line to a line parallel to and 50’ back from said front yard set-back line,

63     and extending across the Lot to the minimum side yard set-back lines.  Construction of the home and/or

64     other improvements beyond the limits of such building pad area may result in an increased risk of

65    encountering adverse subsoil conditions.  Buyer understands that, other than the Limited Subsoil Warranty

66     set forth below, Seller makes no warranties or representations with respect to adverse subsoil conditions.

 

67    Limited Subsoil Warranty.  In the event Buyer encounters, during the course of construction, irregular

68    subsoil conditions requiring greater than a twelve (12) course foundation for the house (or 7 courses below

69    grade, or the original foundation design of the house, whichever is deeper), with seven (7) courses below

70    grade in the garage, the Seller agrees to reimburse Buyer for some of Buyer’s additional foundation expense,

71    subject to the following limitations:

 

        91                    (a)              Upon excavation and discovery of the requirement for extra courses, Buyer shall

      92                 halt all further construction and shall promptly notify Seller, who shall have the right to 

93                            inspect the excavation to verify the claimed irregular subsoil conditions.  Buyer’s failure

94                            to comply with this provision shall be deemed a waiver of all of Buyer’s rights under this

95                            warranty, and the Seller shall have no financial responsibility to reimburse Buyer for any

96                            extra costs.

 

 

 

97        (b)      Upon verification by the Seller of the irregular subsoil conditions, the Seller

98                 agrees to reimburse the Buyer for some of the additional expense incurred by Buyer as a

99                            result of said irregular subsoil conditions, in an amount equal to the lesser of: (i) the

100                        actual additional expense incurred by Buyer; or (ii) a sum equal to Three and 50/100

101                        Dollars ($3.50) per block for the number of extra block actually installed beyond twelve

102                        (12) courses for the house (or 7 courses below grade, or the original foundation design of

103                        the house, whichever is deeper), and seven (7) courses below grade for the garage.  If

104                        Buyer’s foundation is poured concrete instead of concrete block, the maximum

105                        reimbursement shall be a sum equal to Three and 50/100 Dollars ($3.50) per block for the

106                        number of extra block which would have been required beyond twelve (12) courses for

107                        the house (or 7 courses below grade, or the original foundation design of the house,

108                        whichever is deeper), and seven (7) courses below grade for the garage, if the foundation

109                        had been 12”  concrete block instead of poured concrete.

 

110      (c)      If said extra expense is incurred as a result of variation from the yard grades

111              shown on the Master Grading Plan approved in connection with the original development                                                          

112                        of the subdivision, or because of the unusual design of the home, this Limited Subsoil

113                        Warranty shall be null and void and the Seller shall have no financial responsibility to

114              reimburse Buyer for extra costs.

 

115      (d)      Seller shall have no liability or responsibility to reimburse Buyer for extra costs

116               relating to any portion of the foundation which is located more than fifty feet from the

117               minimum required setback from the street.

 

     118                        (e)            This Limited Subsoil Warranty shall expire two (2) years after the date of closing.

119                        Seller shall have no responsibility to Buyer for extra costs in the event construction is not

120                        Commenced within two (2) years after the date of closing, and/or in the event Buyer fails

121                        to notify Seller of irregular subsoil conditions in accordance with Subsection (a) above on

122                        or before  two (2) years after the date of closing.

 

123   Buyer acknowledges that Seller’s liability for irregular subsoil conditions is expressly limited to the terms

124      and provisions of the foregoing Limited Subsoil Warranty.  Seller makes no other or further warranties,

125      guarantees or representations with respect to subsoil conditions.

 

126      Road Construction, Subdivision Improvements and Utilities.  Buyer is aware that Seller will be

127      constructing roadways and installing utilities and other subdivision improvements, and may have

128      construction workers and equipment on this property from time to time during the construction phase.

129      Location of utility easements will be determined by the utility company, and may or may not be located

130      adjacent to lot lines.  It is understood that, based upon current utility company practices, the applicable

131      utility easements may or may not be recorded prior to closing.  Seller expressly reserves the right, after

132      closing, to dedicate such utility easements as may be required by the applicable utility company to service

133      Lots in the Subdivision.  Buyer is aware that the construction of roadways, utilities and other subdivision

134      improvements may not be fully completed prior to closing.  Seller guarantees to Buyer that all subdivision

135      improvements will be completed within a reasonable time after closing.  Seller agrees to provide to the

136      local municipality such financial security as may be required by the municipality for the completion of

137      public improvements.  No further financial security shall be required of the Seller at closing.  To the extent

138      reasonably necessary for the completion of improvements after closing.  Seller shall be deemed to have

139      retained a temporary construction easement on this Lot for the completion of said improvements.

 

140  Utility Service.  Seller agrees that utility service for telephone, electric, natural gas, sewer and water will

141  be installed in the subdivision, no later than six (6) months after the date of closing.  The location of said

142    utilities shall be such as is determined by the applicable utility according to its customary practices. 

143    Telephone and electric service shall be available for connection either at the lot line or within the lot

144    boundaries.  Natural gas service will be installed within the public road right of way in front of this lot or

145    within an easement on this lot.  As set forth in the Deed Restrictions, Seller retains the right after closing to

146    grant utility easements on the Lot(s) covered by this Offer,  in such locations as a reasonably required by

147    the applicable utility to provide service to the Lots in this subdivision.

 

148    Real Estate Taxes.  In the event this property will not be separately assessed for real estate tax purposes for

149    the year of closing, taxes shall be prorated at the time of closing based upon $500.00.  Said taxes shall be

150    prorated in reverse, with Buyer paying to Seller, at closing, the prorated portion from the date of closing

151    through the end of the calendar year.  If the lot covered by this Offer will be separately assessed for the year

152    of closing, taxes shall be prorated at the time of closing based upon the actual or estimated assessment for

153    this lot for the year of closing multiplied by the last known net tax rate, and Buyer shall receive a credit for

154    the applicable tax proration at closing.  Regardless of how taxes are prorated at closing, either party shall

155    have the right to require a re-proration of taxes, based upon the actual tax bill for the year of closing,

156    provided written demand for such re-proration is given to the other party on or before January 15 of the

157    year after closing.  Failure to give timely written notice of demand for re-proration shall constitute a waiver

158    of the right to require re-proration.  If this lot is not separately assessed for the year of closing, the

159    re-proration shall be based upon 1/81 of the land portion of the actual tax bill.  Any payment due as a result 

160    of such re-proration is due and ayable on or before January 31 of the year after closing.  Buyer is aware that

161    the property covered by this Offer will likely be subject to reassessment for the year of closing and

162    thereafter.

 

163    Hazardous substances.  Various government agencies and consumer groups have determined that the

164    presence of various substances may be hazardous to the health of individuals exposed to same.  Buyer

165    acknowledges that Buyer is aware that the property may contain various substances which may be

166    hazardous.  Neither Seller nor Broker make any representations that the property is free from hazardous

167    substances, and any provision to the contrary in this Offer is hereby deleted.  Unless otherwise indicated in

168    this agreement or in any other written disclosure, Seller represents that Seller is not aware of any testing

169    having been done on the property which disclosed the existence of hazardous substances constituting a

170    significant health or safety  hazard for occupants of the property, and that Seller has not knowingly installed

171    or placed any such substances on the property.  Such substances may, however, have been installed or

172    placed on the property as a result of actions of prior owners and/or occupants.  Buyer has the right and

173    responsibility to have the property inspected and tested, as part of Buyer’s inspection contingency, for those

174    substances which are material to Buyer’s decision to purchase the property.  If this Offer does not include

175    an inspection contingency, Buyer acknowledges that the matters addressed by this paragraph are not

176    material to Buyer’s decision to purchase the property.

 

177    Buyer Reliance and Release.  Buyer acknowledges that in purchasing the subject property Buyer has

178    relied and will rely solely upon Buyer’s own independent inspection and analysis of the property and

179    conditions affecting the property and this transaction.  All Buyers release Seller and Broker from any

180    and all liability in any way relating to defects, matters and/or conditions affecting the property or this

181    transaction of which any Buyer had actual knowledge prior to acceptance of this agreement, which are

182    disclosed in this agreement or in Seller’s Real Estate Condition Report, and or which are discovered by or

183    disclosed to any Buyer (by Seller, by Broker or by any third party) prior to the expiration of any applicable

184    inspection or other contingency.  Except as set forth elsewhere in this contract, Buyer further acknowledges

185    that Buyer has not requested Seller or Broker to verify or determine any matters which are material to

186    Buyer’s decision to purchase, and that there are no other items or donditions that are material to Buyer’s

187  decision to purchase this property.

 

187    Disclosure.  Buyer is aware that William F. Minett is a member of Blue River Preserve, LLC and is a

188    Licensed Real Estate Broker in the State of Wisconsin.  Buyer is aware that William F. Minett, member of

189    Blue River Preserve, LLC is a member of Waterfront Mortgage, LLC.

 

190    Conflict with Approved Forms.  It is intended that this document be used with an approved form as set

191    forth in RL 16.03.  In the event any provision of Addendum conflicts with the provisions of the approved

192    form, the provisions of this Addendum shall control.

 

193    Advertising Materials.  Buyer is aware that printed advertising materials previously provided to Buyer

194    Concerning this property may not be entirely accurate, including but not limited to items such as lot sizes,

195    Lot boundaries, locations of public streets and other subdivision improvements and references to deed

196    Restrictions.  Buyer has been advised to include appropriate contingencies in this Offer for the verification

197    of all matters which are material to Buyer’s decision to purchase this property.

 

198    Buyer has read, fully understands and acknowledges receipt of a copy of this Addendum B to the Offer to

199    Purchase.

200    Dated:______________________________

 

201  ____________________________________            _______________________________________

202  Buyer:                                                                          Buyer:

 

203    Seller has read, fully understands and acknowledges receipt of a copy of this Addendum B to the Offer

204    to Purchase.

205    Dated:_______________________________

 

206    ____________________________________          _________________________________________By:  Blue River Preserve, LLC, Mike Schutte, Member    Blue River Preserve, LLC, Bill Minett, Member