Lake Lot Purchase Option

Lake Nasworthy Homeowners Association, Inc.

The City of San Angelo is taking Applications from Leaseholders for the purchase

of their lot at Lake Nasworthy. Purchase of a lot is strictly voluntary, as all

leases will continue to remain in effect. The purpose of this letter is to

provide you with information that may assist you in the steps in purchasing the

property.

1. Application. It you are interested in purchasing your lot, please contact

Linda Epps to obtain an application at the Water Utilities Department, P.O. Box

1751, San Angelo, TX 76902, 325-657-4209.

2. Appraiser. An Appraiser will be selected from a list of pre-qualified

appraisers on file with the City.

3. Appraisal. Appraisals will be based strictly upon land value and will not

include any improvements. The sales price will be the fair market value as

determined by the appraisal. Once the appraisal is completed and the City

Council has accepted the appraisal, a copy of the appraisal report will be sent

to you. Any questions you may have with the report can be reviewed with the

appraiser. The appraisal report will be good for a period of six (6) months.

4. Sales Contract. Within 6 months after receipt of the appraisal report,

you will need to notify the City if you want to continue with the purchase of

the lot. It you proceed with the purchase option, a sales contract will be

prepared and an escrow deposit will be required at this time.

5. Title Report. Upon receipt of your escrow deposit, the City will request

a title report and will deliver a copy of the preliminary title report and other

relevant documents when the title examination is completed.

6. Surveys. The lot has been platted and recorded by the City. There is no

cost to the Leaseholder for this plat. It you need a survey, you will be

responsible for obtaining that service at your own expense.

7. Purchase Decision. Within 21 days of receiving the preliminary title

report, you will be required to notify Mrs. Epps whether or not you require any

curative matters affecting title and whether or not you intend to proceed with

the sale. The City is entitled to cure any title problems.

8. Property Deed. After all legal documents are prepared and upon receipt

of the entire purchase amount, the Mayor will sign the Deed. The Deed will be

recorded in the Tom Green County Official Public Records, and the original Deed

will be forwarded to you. Any Lease fee, which has been prepaid, will be

prorated and applied to the purchase price along with the escrow deposit.

9. Financing. Purchase of your lot is on a cash basis only. Any financing

you may want to consider for the purchase must be obtained from a private

financial institution and in accordance with the timeline of the process.

10. Homeowners Association. When you purchase your lot, you will automatically

become a member of the Lake Nasworthy Homeowners Association. This organization

will be responsible for administration of the deed covenants on this property.

The Association will consist of a governing board elected by it’s members.

This notice is for information purposes only and does not constitute an offer to

sell. It is anticipated that it will take from 2-6 months to accomplish a

purchase request depending on the availability of an appraiser and a clear

report. We appreciate you allowing at least this much time in your purchasing

plans.

I hope this answers some of the questions that you have on purchasing your lot.

If you need more information, please contact me at 325-657-6209.

Sincerely,

Will Wilde

Director of Water Utilities