1987.07.17 (Edward White to Jean O'Connell)
"Re: Accotink property offer
Dear Mrs. O'Connell,
I have reviewed the contract from Real Estate General Associates, Inc. and have enclosed as an Addendum some changes to it which are not terribly substantive.
I think since you and the Trust are being asked to carry quite a bit of debt that some financial data should be submitted to you. The buyer should be asked to fill in a standard bank loan application form which can be obtained from your (or any bank).
The breach clause should definitely be in the contract.
The miscellaneous additions are standard and should not have been omitted by the realtor.
Of course I can not give any opinion as to the correctness of the price, but it does seem to be in the range of Mr. Higham's earlier estimate. The fact that there is no request for subordination of your mortgage is a strong selling point for this offer.
I am concerned about the size of the commission which will amount to $51,000.00 off the top. I really think this can be negotiated down to about 4%. Considering the amount of work involved for the realtor in this matter, I think $34,000 .OO is more than generous. An additional money consideration is the fact that this property was inherited at a basis of $37,000.00. As I understand it the capital gain would be the difference between the sales price and the inherited price adjusted for the mortgage. I would guess that of the $250,000.00 cash received the tax might be about 40% or $100,000.00. By my rough calculations I think your share (53.91%) might net $53,370.00 at the settlement. You probably will wish to check this with Jo Ann Barnes.
If the trust were larger the tax would be cut down but that would also cut your net share. Frankly I think the place to increase your share would be through the commission.
I have added an Attachment which reflects the actual sellers and a signature line for them. Please show this to Andy and either of you feel free to call me.
Sincerely, Edward J. White"
DEED OF TRUST
Said note or notes will be secured by a Deed of Trust whose trustees will be designated by the Sellerss.
Within five (5) days of the signing of this Contract, Purchaser shall furnish to Sellers a financial statement upon the form provided and in addition shall furnish such other additional financial data as required by the sellers.
This contract is expressly contingent upon approval by the seller of the financial credit worthiness of the Buyer. Sellers shall have no more than five (5) days from the receipt of the requested data in which to reject this contract in the event of dissatisfaction with the financial information furnished. If at the end of the five (5) day period Sellers have not notified Buyer in writing of such a rejection, this contingency shall be automatically removed.
In the event of breach, the party at fault shall pay costs and attorney's fees, plus damages incidental to the breach such as: moving and relocation expenses, loss of deposit money, increased interest rates and lost interest earning opportunities.
The principals to this contract mutually agree that it shall be binding upon them, their and each of their respective heirs, executors, administrators, successors and assigns; that the provisions hereof shall survive the execution and delivery of the deed aforesaid' and shall not be merged thereon; that this contract contains the final and entire agreement between the parties hereto and that neither they nor their agents shall be bound by any terms, conditions, statements, warranties or representations, oral or written, not herein contained."
I don't understand why Edward White advised me to call John Beall in the Virginia Attorney General's Office about Accotink two months after he wrote the above letter to Jean O'Connell about the contract on Accotink, with no copy to me, saying "Please show this to Andy and either of you feel free to call me.
1987.09.09 (John Beall to Anthony
O'Connell, copy to
In response to our telephone conversation about discontinuance of maintenance of public roads in Virginia, partucularly in Fairfax County, I enclose copies of sections from Title 33.1 of the Code of Virginia. The operative sections are § § 33.1-150 to 33.1-155, § 33.1-147 referenced in § 33.1-150 and § 33.1-69 and § 33.1-229.
Sincerely, John J. Beal, Jr.
Senior Assistant Attorney General
Copy to Edward White"
(I include this letter to show the connection)
to Edward White and John Baell)
"I feel very fortunate for you, Mr. White, to have given me access to Mr. Baell, and for you, Mr. Bael, to have given me your unique insight and copies of the pertinent statutes. Thank you both for your valuable help yesterday.