NEWTON BOARD OF SELECTMEN
DATE: TUESDAY, MAY 22, 2012
TIME: 11:00 AM
LOCATION: NEWTON POLICE DEPARTMENT, 8 MERRIMAC ROAD
MEETING MINUTES
• Call to Order, Roll Call Vote
Chairman McCarthy opened the public meeting at 11:00 am, at the new location of the Police Department at 8 Merrimac Road, to sign the documents for the purchase of land and buildings at the present location. In attendance were Selectman Raymond Thayer, Selectman Charles Melvin, Sr., Selectmen Chairman Trisha McCarthy, Town Administrator Nancy Wrigley, Current Owners Chester and Sandra Bearce, Title Pro Manager Sharon Worester. The meeting was audiotaped; minutes were transcribed and typed by Town Administrator Nancy Wrigley.
Roll call vote to open the meeting: Thayer-yes, Melvin-yes, McCarthy-yes. Unanimous.
Scheduled Business
Real Estate Closing - Bearce Property, 8 Merrimac Road
• The first document to be signed was the Settlement Statement. Ms. Worster explained to those present how the figures were calculated as follows:
- The purchase price is $800,000.00.
- The settlement charges are $2,290.90 which includes
a. Title Pro’s fee for the title, closing and document preparation is $575.00.
b. Owner’s title insurance is $1,675.00
c. Recording the documents is $40.90.
- There are no tax stamps and no LCHIP as the Town is exempt from that.
- The amount of $2,290.90 was added to the purchase price for a total of $802,290.90 less the $740,000.00 new mortgage = $62,290.90.
- The adjustment for taxes unpaid by the Seller as of 03/31/12 to 05/22/12 is $2,810.10.
- The Town received a credit (check #65620) for $519.20 for the property taxes that the seller hasn’t already paid through May 22, 2012; forward from here, the rest of the tax bill will be abated.
Ms. Worster stated, as outlined in her letter to the Board of Selectmen dated May 22, 2012, that the original closing was scheduled for May 4, 2012 but due to unforeseen circumstances the closing was delayed until May 22, 2012. That is why she didn’t need the $60,000.00 + as
originally calculated. The difference between the cost and credits is $59,480.80 that Title Pro needs to collect. The Board of Selectmen and Sandra Bearce signed this document.
Ms. Worster explained to the Board that the Mortgage Deed and the Mortgage Promissory Note needs to be signed by all of the Selectmen but the other documents can, if you wish, be signed by just the Chairman. The Board agreed that they would all sign the documents. It was also recommended to initial the first page(s) if a multi-page document. She made reference to the property deed as being land and buildings in a commercial zone.
• The Department of Revenue Inventory of Property Transfer Form (PA34) was filled out and signed by the Board of Selectmen as the buyers.
• A Tax Pro-ration Agreement was signed by the Buyers and the Seller. The amount of taxes owed by the Bearce Revocable Trust from 03/31/12 to 05/21/12 is $2,810.10. This agreement was based on last year’s tax bill because this year’s bill is not out yet.
• The Promissory Note was signed by the Board of Selectmen promising to pay to Sandra Bearce, Trustee of the Sandra M. Bearce Revocable Living Trust in the amount of $740,000.00 with Zero (0) interest beginning April 1, 2013, continuing until paid in full on April 1, 2021. The Amortization Schedule was reviewed showing the payment schedule during the time stated above. This document states that the property cannot be sold without paying the mortgage off and that the Promissory Note will be secured by the Mortgage Deed recorded in the Rockingham County Registry of Deeds.
• The Mortgage Deed was signed by the Board recorded at the Rockingham County Registry of Deeds securing the Promissory Note as stated above showing the legal description of the property with Sandra Bearce, Trustee of the Sandra M. Bearce Revocable Living Trust as being the Mortgagee.
Ms. Worster asked the Selectmen to acknowledge verbally that this is your “free act and deed”. All three Selectmen said “yes”.
• The Real Estate Transfer Tax Form (CD-57) was signed by the Board of Selectmen and Sandra Bearce. This document was to find out how much was paid in tax stamps. Because the Town is exempt from paying tax stamps, there weren’t any.
• The Warranty Deed containing the additional language regarding the Addendum to the Purchase and Sale Agreement signed by the Selectmen on May 21, 2012 was signed by Sandra Bearce.
• Document signed by Sandra Bearce was the 1099-S Form – Proceeds from Real Estate Transactions.
• Mechanic’s Lien Certificate – Title Insurance in connection with the mortgage and deed.
Copies were made of all the original documents with one set going to Mr. & Mrs. Bearce and one set for the Town of Newton. Checks were disbursed including the Town’s check for $60,000.00 to Title Pro, the refund check from Title Pro to the Town for $519.20 and the check from Title Pro to Mr. & Mrs. Bearce for $57,189.90.
Ms. Worster gave the original, signed Promissory Note to Mr. & Mrs. Bearce for their records and noted that this is the most important document of all and suggested that he lock it in a safety deposit box. She stated the fact that the mortgage secures it, means nothing without the original Promissory Note.
The Selectmen thanked Mr. & Mrs. Bearce for their generous offer and stated the “Town Thanks You”.
At 11:44 am, Chairman McCarthy announced that all of the documents have been signed, and the checks have been disbursed at which time Selectman Melvin made a motion to adjourn. Second by Selectman Thayer. Unanimous.
Respectfully submitted,
Nancy J. Wrigley
Town Administrator
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