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AZREB.com | Real Estate Clauses
ARTICLE
16.
Condemnation
.
16.1. If Seller has or obtains actual knowledge of any
pending or threatened condemnation proceedings or actions, then Seller shall
notify Buyer promptly. If on or
prior to the Closing Date any portion of the Property shall be taken or
condemned pursuant to any governmental or other power of eminent domain, any
written notice of such a taking or condemnation shall be issued by any
governmental authority having the power of eminent domain, or any proceeding
for such a taking or condemnation shall be instituted by any governmental
authority having the power of eminent domain (collectively, "Taking")
and if Buyer would be substantially prevented from continuing the existing use
of the Property after the Taking, then Buyer shall have the right, exercisable
only by giving notice to Seller (with a copy to Closing Agent) within fifteen
(15) days after receiving Seller's notice of the Taking, to terminate this
Agreement. If Buyer duly exercises
that right, then Closing Agent is hereby instructed to return the Deposit to
Buyer in accordance with Exhibit "J" as Buyer's sole
remedy. If Buyer does not duly
exercise that right, then Buyer shall have no further right to object to the
Taking. If Buyer shall not have the
right to terminate this Agreement under the foregoing provisions of this Section
on account of a Taking or if Buyer shall have waived any objection (or shall
have no further right to object) to a Taking under those provisions, then, at
Closing (a) Buyer shall accept the Property subject to the Taking, (b) the
Purchase Price shall be reduced by the amount of any award theretofore received
by Seller with respect to the Taking, and (c) Seller shall assign to Buyer all
of Seller's rights to any and all awards not theretofore made or paid with
respect to the Taking.
16.2. Notwithstanding the foregoing provisions of
this Article, (a) if there is a Taking and there is Seller Financing, then
Seller shall have the right, exercisable only by giving notice to Buyer (with a
copy to Closing Agent) within fifteen (15) days after the date of Seller's
notice of the Taking, to terminate this Agreement, and (b) if the amount of the
award that is payable or reasonably anticipated on account of a Taking exceeds
the Purchase Price, then Seller shall have the right, exercisable only by giving
notice to Buyer (with a copy to Closing Agent) within fifteen (15) days after
Seller is notified of that amount or anticipated amount, to terminate this
Agreement. If Seller duly exercises
that right, then Closing Agent is hereby instructed to return the Deposit to
Buyer in accordance with Exhibit "J".
16.3. If a period described in the foregoing provisions
of this Article becomes applicable and the Closing Date would otherwise occur
during such period, then the Closing Date shall be extended to be a date
selected by Seller. Such new
Closing Date shall be within thirty (30) days after the applicable period(s).
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