HomeMy WebLinkAbout04-2123COMMONWEALTH OF PENNSYLVANIA
COUNTY OF: CUMBEP, LAND
Mag Dist NO:
09-3-03
DJ Name: Hon
SUSAN K. DAY
Address: 229 MILL STREET, BOX 167~
MT. HOLLY SPRINGS, PA
Telephone:(717) 486-7672 17065
ATTORNEY FOR PLAINTIFF :
DAVID H. STONE, ESQ.
414 BRIDGE ST.
NEW CUMBERLAND, PA 17070
IS TO NOTIFY YOU THAT:
Judgment:
~-~ Judgment entered for:
WaS
(Name)
Judgment was entered against: (Name)
NOTICE OF JUDGMENT/TRANSCRIPT
NAME and ADDRESS
FHOME DESIGNS UNLIMITED
199 BEAGLE CLUB RD.
CARLISLE, PA 17013
VS.
DEFENDANT/JUDGMENT CB.E~ITOR:
GREGORY L. WHARY ROOFING
P.O. BOX 737
709 HARRISBURG PIKE
~ILLSBURG, PA 17019
Docket No.: CV- 0000022- 04
Date Filed: 3/16/04
CROSS COMPLA NT 001
FOR PT.ATNTIFF
GR~C~ORY f,. WHAR¥
in the amount of $
2,6'7K K1 on:
(Date of Judgment)
4/01/04
--[Amount of Judgment Subject to
Attachment/42 Pa.C.S. § 8127 $
[~] Portion of Judgment for physical
damages arising out of residential
lease $
Defendants are jointly and severally liable.
Damages will be assessed on:
This case dismissed without prejudice.
(Date & Time)
Amount of Judgment $ 2,675.51
Judgment Costs $ .00
Interest on Judgment $ .00
Attorney Fees $ .00
Total $ 2,675.51
Post Judgment Credits $
Post Judgment Costs $
Certified Judgment Total $ 2,675.51
ANY PARTY HAS THE RIGHT TO APPEAL WITHIN 30 DAYS AFTER THE ENTRY OF JUDGMENT BY FILING A NOTICE
OF APPEAL WITH THE PROTHONOTARY/CLERK OF THE COURT OF COMMON PLEAS, CIVIL DIVISION. YOU
MUST INCLUDE A COPY OF THIS NOTICE OF JUDGMENT/TRANSCRIPT FORM WITH YOUR NOTICE OF APPEAL.
EXCEPT AS OTHERWISE PROVIDED IN THE RULES OF CIVIl. PROCEDURE FOR DISTRICT JUSTICES, IF THE JUDGMENT HOLDER
ELECTS TO ENTER THE JUDGMENT IN THE COURT OF COMMON PLEAS, ALL FURTHER PROCESS MUST COME FROM '[HE COUR:r
OF COMMON PLEAS AND NO FURTHER PROCESS MAY BE ISSUED BY THE DISTRICT JUSTICE.
UNLESS THE JUDGMENT IS ENTERED IN THE COURT OF coMMoN PLEAS, ANYONE INTERESTED IN THE JUDGMENT MAY FILE
A REQUEST FOR ENTRY OF SATISFACTION WITH THE DI$]'RICT JUSTICE IF THE JUDGMENT DEBTOR PAYS IN FULL, SE'i rLES
OR OTHERWISE COMPLIES WITH THE JUDGMENT.
~/-O y Date ' ' / , District Justice
I Certify that this is a true './~correc~t, ~Py ° f ;ia ir'i~c0,~/ceec Containing the judgment.
· %'-.~'-~/ Bat ~ , District Justice
My commission expiCes first Monday of January, 2010 ~/ SEAL
AOPC315-03 DATE PRINTED= 5/06/04 7:49:44 AM
..
ORIGINAL
NANCY AMIS, FORMERLY KNOWN AS
NANCY A. REED,
IN THE COURT OF COMMON PLEAS
CUMBERLAND COUNTY, PENNSYLVANI
PLAINTIFF
v
CIVIL ACTION - LAW
NO. 2000-2123 CIVIL TERM
MICHAEL D. REED,
DEFENDANT
IN DIVORCE
(--)
DEPOSITION OF: MICHAEL D. REED
-'- C)
TAKEN BY:
PLAINTIFF'
BEFORE:
KAREN C. ALBRIGHT, RPR
NOTARY PUBLIC
DATE:
DECEMBER 1, 2004, 8:55 A.M.
PLACE:
LAW OFFICES OF SAMUEL L. ANDES
525 NORTH 12TH STREET
LEMOYNE, PENNSYLVANIA
APPEARANCES:
LAW OFFICES OF SAMUEL L. ANDES
BY: SAMUEL L. ANDES, ESQUIRE
FOR - PLAINTIFF
JAMES, SMITH, DIETTERICK & CONNELLY, LLP
BY: JOHN J. CONNELLY, JR., ES(;IUIRE
FOR - DEFENDANT
2080 Linglestown Road. Suite 103 . Harrisburg, FA 17110
717.540.0220. Fax 717.540.0221 . Lancaster 717.393.5101
-1",
C)
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:':;J
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1
2 NAME
3 MICHAEL D. REED
4 BY: MR. ANDES
5 BY: MR. CONNELLY
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WITNESSES
EXAMINATION
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STIPULATION
It is hereby stipulated by and between counsel
for the respective parties that sealing, certification and
filing are hereby waived; and that all objections except
as to the form of the question are reserved to the time of
trial.
MICHAEL D. REED, JR., called as a witness,
being duly sworn, testified as follows:
EXAMINATION
BY MR. ANDES:
Q Would you state your name and address for the
record?
A Michael D. Reed. 1419 Holly Pike, Carlisle,
Pennsylvania. 17013.
Q Your an attorney?
A Yes.
Q You do litigation?
A Yes.
Q Would you say that's your specialty?
A Yes.
Q So you've certainly participated in depositions
before?
A Yes.
Q Have you ever been deposed?
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A
Q
A
Q
A
Q
Yes.
So you know how the process works.
Yes.
Do you have any questions about it?
No.
If I cut you off before ~~u complete your
answer or if you want to complete your answer later,
elaborate on it, let me know and I'll give you a chance to
do that. And if you don't understand my question -- and
I'm sure that there will be times I'll get them garbled
tell me; I'll rephrase it so we're sure we're talking
about the same thing and you're answering my question. Is
that satisfactory?
A Yes.
Q You were married to Nancy Reed, is that
correct?
A Yes.
Q What was the date of your marriage?
A January 9, 1982.
Q And there were two children born of the
21 marriage?
22 A Yes.
23 Q Their names are?
24 A Miller.
25 Q And?
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Q
A
Peter.
How old is Miller now?
Miller is --
Q If you know his year of birth, that would be
sufficient.
A He was born in 1982. So he's 22. And Peter is
20.
Q
A
Where did you go to live at that time?
I went to live at a rental property at 58
6
wilson Street in Carlisle.
Q Relative to Moreland Avenue, about how far away
was that?
A About three blocks away.
Q And did you subsequently purchase a home?
A No.
Q Where you live now you do not own?
A No, my wife owns the home.
Q How long did you live at Wilson Street
approximately?
A Until September 12th, 2001.
Q What occurred then? To where did you move your
present
A 1419 Holly Pike.
Q During the time that you were married to Nancy,
did the two of you own any other reE:idents prior to this
one?
A Yes.
Q Where was that? I don't need the street
address?
A Well, there were two. The first residence that
we owned together was Colonial Village Green townhouse in
Aston, Pennsylvania.
Q Where is Aston, what part of the state?
A It's in Delaware County outside of
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Philadelphia, when I was practicing in Philadelphia. Then
we moved back to central Pennsylvania in 1986, and
purchased a house at Pomfret Street in Carlisle.
Q And you lived there until you purchased this
property in July of 1997?
A That's correct.
Q When after you separated when did you -- strike
that.
After you separated did you and Nancy have any
discussions about a financial settlement and a divorce
directly, or were those discussions through attorneys?
A I had some very limited discussions with Nancy
within a few days before I left the home trying to explain
to her what I felt the financial realities of our
situation were, and she felt that she needed to talk to an
attorney and I respected that opinion, so we didn't really
have any further discussions other t~han occasional phone
calls where we would be talking about our kids or
something else, and things would be said, but nothing
substantive that I remember.
Q When was the first time you consulted an
attorney to recent you in this matter?
A Before I moved out. I consulted with Don
Kissinger I would say in either July or August of 1999. I
don't recall.
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Q Did you retain him at that time to represent
you in this matter?
A Yes.
Q When was the first time that you were aware
that Mr. Kissinger had any contact with your wife or an
attorney on behalf of your wife?
A I don't recall when that would have been.
Q Would it have been after your separation, do
you believe?
A Yes, I believe so. I believe Nancy -- I don't
know. You'd know better than I, but I don't think Nancy
retained you until after our separation.
Q I represent her now. Was she represented by
any attorney before me?
No.
So the first attorney that represented her that
communications with Mr. Kissinger would have been
A
Q
had any
me?
A
Q
I believe that's true.
Did you submit through Mr. Kissinger an offer
of settlement regarding how you proposed that the marital
assets be divided?
A I'm sure we must have, but I don't recall at:
this point.
Q Do you remember seeing this letter?
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A Yes.
Q Would you agree that this was the first letter
dealing with proposals or discussions regarding an
economic resolution?
A I don't have any memory of any previous letter,
so I assume that's right.
Q And I assume this letter was submitted with
your authorization that you had discussed this proposal
with Mr. Kissinger?
A That's correct.
11 Q Subsequent to that, was there a meeting that
12 you attended back here at my office with Mr. Kissinger,
13 myself and your wife?
14 A Yes, we did have that meeting.
15 Q Do you remember about when that took place?
16 A About March, 2001.
17 Q Were there discussions at that meeting about a
18 financial settlement?
19 A Yes.
20 Q Between the date of this letter, April of 2000
21 and some time in early 2001, do you recall whether there
22 were other discussions about a settlement in terms of did
23 Nancy or I respond to this letter with a counterpropos,al
24 or an acceptance or a rejection, or did Mr. Kissinger make
25 other proposals, to your knowledge?
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A I don't remember at this point.
Q So the -- I'm going to call that meeting -- and
my records indicate it may have been as early as January
of 2001, would that be possible?
A No, I think there was a meeting -- my calendar,
which I did look at before I answered the interrogatories
that you sent, I think showed -- and the interrogatories
are more correct than my current recollection because I
had my calendar in front of me at the time, but they have
the actual date of those meetings. I believe one was in
March of 2001 and the second meeting was in January of
2002. That's what I recall, but I could be wrong.
Q Okay. Let me get your answers to
interrogatories, because maybe that will help us.
Q Yes. You referred to a meeting in January of
2001?
A
Q
A
I'm sorry.
And one in March of 2002?
So I had it reversed. It was January 2001 and
March 2002.
Q At the meeting in January of 2001, what do you
recall was discussed?
A I recall that there was initial discussion
about documentation of certain things, especially relating
to my law firm and the interests in the law firm, whether
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you had enough documentation at that point, which I think
you were still requesting some further documentation of
those interests, and then I recall that Don Kissinger sort
of initiated a conversation where he tried to go down this
list of assets. I don't know. I don't know that it was
the same list that was in Exhibit 1, but he went down a
list of things to try to see what we had an agreement on
and what we didn't have an agreement on. That's what I
recall.
Q How did that go?
A What I recall from that is that there was a
discussion about the value of the law firm assets and the
value of the house, and that we knew the mortgage on the
house was approximately 170 thousand dollars, and that we
discussed the value of the house as being somewhere
between 225 and 230 thousand dollars, and there was
general agreement about those things, I thought, among the
parties at the meeting.
And then we went on to -- and we talked about
my pension, we talked about an inheI"itance from her mother
that Nancy had received but that was in joint names --.had
been put into joint names before we separated, and I think
we acknowledged at that meeting and certainly after that
meeting that we would not press to have any interest in
that fund, that she could keep that. But we talked about
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those things and it seemed to me as though the only thing
left in dispute in the property settlement was, A, the
documentation as to what the law firm was worth, and B,
what percentage of my pension funds would be distributed
to Nancy, that there would be some amount that she'd be
getting from my pension, but I think our initial offer had
been 25 percent. And there wasn't a discussion of
percentages I don't think at that meeting, but there was a
discussion that some amount would have to come out of the
pension to make the property settlement final.
And then we talked about alimony. And alimony
is where the discussion kind of broke down and I think you
indicated at that point that and Nancy wasn't willing
to talk about anything other than indefinite alimony
payments, and I was not willing to agree to that, and so
the meeting kind of ended on that note that we couldn't
reach an agreement on alimony. And I think you made the
comment maybe it's too early and we need to give this some
time, or something like that.
Q You mentioned there was two items, a pecentage
of your pension, and what was the other one?
A The valuation of the law firm assets, the
documentation of that valuation. We were giving you
figures where I think at that point we had gotten maybe a
scratch paper from our managing par1:ner and you wanted
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further backup, which we ended up giving you after the
meeting, I believe.
Q There was basically three things still to be
done. There was a determination of what percentage she
was to get from your pension funds?
A Right.
Q There was exchange of value of your interest in
the law firm and its related entities?
A Right.
Q And I guess basically the term of the alimony,
but the whole question of alimony to some extent was open?
A Yes.
Q But you're certain in your recollection that we
discussed the value of the house?
A I have that recollection, yes.
Q From then until the meeting of March in the
following year 14 months later, were there, to your
knowledge, further negotiations or discussions?
A I believe there were exchanges of
correspondence. I'm not sure I would characterize them as
negotiations, so I guess there were discussions going
through the attorneys, and at some point I retained John
Connelly and had him replace Don Kissinger.
Q Do you remember when that: occurred,
approximately?
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2001.
Approximately the end of -- late in the year
Q
So the meeting in 2002 was not attended by Mr.
it was attended by you and Mr. Connelly?
That's correct.
Kissinger,
A
Q With these discussions or letters that you say
were exchanged, was there any discus:3ion, to your
knowledge, of value of the house?
A I've looked through those letters that I have
copies of, and I don't see anything in there that where it
was specified in the letters, no.
Q Was there ever any, to your knowledge, any
dispute or -- strike that; dispute is the wrong word. Was
there any negotiation after that meeting in January of
2001, and before the meeting in March of 2002, regarding
the value of the house?
A No.
Q The meeting in March of 2002, again, you
attended with Mr. Connelly, and Nancy and I were there?
A That's correct.
Q Anybody else?
A No.
Q And where did that take place, if you recall?
A Here.
Q What was the substance or what was the --
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describe in your words what took place at that meeting.
A What I recall at that meeting is that John
started off by trying to summarize where the parties had
been up to that point, and that we sort of discussed the
fact that there was -- that we weren't seeking anything
from the inheritance, that the law firm assets, which by
that time you had all the documentation on, and the house,
the equity in the house, would essentially offset each
other because they were both in the range of maybe 50 to
60 thousand dollars, and that if we could make an
agreement as to the percentage of the payment from my
retirement or pension fund, that that should conclude
everything on the property side of the equation, and then
we still needed to discuss alimony, which we did again
discuss and still reached no agreement at that time. I
think there was still disagreement about the term. I
believe Nancy still wanted indefinite at that point.
Q At that meeting were specific values discussed
regarding the house or the equity in the house?
A I don't believe as much was discussed at that
meeting about specific values. I think what was discussed
was that the value in the house, the equity in the house
would basically be offset against the value in the law
firm, that that would sort of be a wash, that we weren't
claiming any interest in the inheritance money, and that
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therefore the only thing left really to be carved up was
my retirement.
Q So at this point the matters that were open
were the retirement division?
A Right.
Q And the alimony?
A Right.
Q Do you recall whether there were discussions
about an amount of alimony as well as the term?
A There probably were, but I don't recall
specific amounts. I think there were discussions about
amounts, but I don't remember what they were.
Q Do you remember whether there was any agreement
reached regarding the amount?
A Not at that time I don't believe there was.
Q Term was still a problem?
A Right.
Q After that there were no further meetings that
you and Nancy and the attorneys had together, is that
correct?
A That's correct.
Q What in your recollection and your review of
your file, what happened next with regard to the divorce?
A Well, the next thing that I remember is that I
did have a conversation with Nancy shortly after that
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meeting where we were having a discuE:sion just about our
kids or something, and I think Nancy said or I said it's
too bad we can't get this divorce wrapped up or finalized.
To which I said, you know, the problem is that you want
indefinite alimony and apparently that's not negotiable
for you. And Nancy said, oh, that's negotiable. And I
said -- that was like a light that went on in my head
oh, okay, maybe we can get this resolved then. That's
when we began to talk -- I began to talk to my lawyer
about how we have might negotiate that.
Q Where did that discussion with Nancy take
place?
A On the phone.
Q And as a result of that what you pursued or
both parties pursued more negotiations in an effort to
resolve everything including the alimony?
A Yeah, I know at one point we came back with an
offer that had two options in it. One was to keep the
alimony at the level it would be after -- my younger son
Peter was still a dependent at the time we were having
these discussions, and was 18 years old but was graduating
from high school that year and would be moving out. And
this would have been 2003. Yeah, 2003. And during those
discussions it was talked about that after he left and the
child support was removed, the alimony would be a certain
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amount. And I think the offer that we made at that point
was -- or at some point shortly thereafter was either
indefinite alimony at that lower fig.ure, or we would
continue the alimony for seven years at a figure that
would be the same as it was when it included the child
support. And that later offer is the one that ended up
being accepted.
Q So do you remember about when that offer was
made?
A No.
Q You eventually filed a petition to bifurcate
the divorce, is that correct?
A That's correct.
Q Do you remember about when that was?
A That was some time in late two thousand -- I'm
getting confused now. I want to take back -- I want to
revise something I said before.
Q Sure.
A I think that the discussion I had with Nancy
about this is negotiable, that was in 2002, shortly after
our meeting in 2002. And then the petition to bifurcate
was filed in late 2002, and then some time in 2003 the
final settlement was reached. But I believe the offer as
far as the two options, the indefinite at the lower amount
or the seven years at the higher amount, I believe that
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was made some time in 2002, probably before the petition
to bifurcate, but I'm not certain of that.
Q And eventually both sides came to an agreement,
and we then reduced the agreement to writing?
A Correct.
Q And that process took, if I recall, some time
to agree upon the language and all of that, is that
correct?
A Yes.
Q The agreement is dated May of 2003. Do you
have some idea how long before that we had reached an
agreement in principal that it took us to come to the
final drafted written agreement?
A I'd say roughly January or February of 2003
there was an agreement in principal, and it took that long
to hammer out the final terms.
Q During this time other than the meeting in
January of 2001, attended by you with Mr. Kissinger, in
which you tell us that there was some discussion of the
value of the house, from that point until this agreement
was signed in May, were there any further discussions, "to
your knowledge, between you and Nancy about the value of
the house or the equity of the house?
A I'm sorry, between January 2001 and when? When
is the end date of that?
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Q Let's go back and let me change the question.
A Okay.
Q From the time you first talked with Nancy about
a separation and/or divorce, which must have been --
A July of '99.
Q Right. Until this agreement was signed in May,
other than the meeting with Mr. Kissinger and I here at my
office in January of 2001, were you party to any other
discussions with Nancy about the value of the house or the
equity in the house?
A Two, that I can recall. One was the one that
I've already mentioned to you shortly before I moved out
when I tried to explain to her what I thought the equity
in the house was, and we discussed it for a while, but
then she said I don't want to commit to anything without
talking to a lawyer, and I said fine. That was shortly
before I moved out in September of '99. And I think it
was in the Spring of -- I know it was in the Spring. I'm
not sure if it was 2002 or 2003. I do remember a
conversation with Nancy where she had received an
assessment value or an assessed value of the house from
the county, they had done a reassessment, and that my
vague recollection is that she was unhappy with that or
that she thought it was too high, or something like that.
Q Did she tell you what it was?
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A No. I looked it up then on the website of the
Cumberland County Courthouse.
Q Do you know what it was?
A 218, in rough. I don't exact, but roughly 218.
Q And she told you she thouqht that was too high?
A That's my vague recollection. I'm not positive
that she used those words too high, but she just indicated
she had gotten an assessment or our taxes were going to go
up.
Q Any other times you discussed anything about
the value of the house or the equity of the house with
her?
A No.
Q Are there any times you are aware that either
of your attorneys or anyone on your behalf discussed it,
other than the meeting with Kissinger that you told us
about, discussed the value of the house with Nancy or
myself or anyone on behalf of Nancy?
A Except that I think it was implicit in the
conversation that we had when John Connelly was here also,
the second meeting. I mean, I think it was discussed .in
that the value of the house equity washes against the
value of the law firm. Not that a specific number was
discussed, but just that those two sort of canceled each
other out. And that was discussion briefly at the
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beginning of that meeting.
Q That was the March '02 meeting?
A Right.
Q And you may not want to answer this, but I'll
ask you to give you an opportunity to answer it or tell me
you're not going to. Did you have discussions with Mr.
Kissinger or Mr. Connelly about the value of the house?
Did you tell them what you believed the value was or did
they tell you what they believed the value was?
MR. CONNELLY: I don't have a problem with that
answer.
THE WITNESS: Yeah.
BY MR. ANDES:
Q Let's go back at the beginning. I assume you
first had those discussions with Kissinger?
A Correct.
Q What did you tell him the house was worth?
A I told him that I thought it was worth between
225 and 230.
Q And that would have been about the time that
you retained him?
A Right.
Q So some time in perhaps the Fall of 1999?
A Urn-hum.
Q Did you have any other discussions with him
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about the value of the house?
A I'm sure we continued to discuss it, but
nothing different than that. I never changed my opinion
during the time he represented me.
Q Did you have discussions with Mr. Connelly when
he came on board?
A Yeah.
Q Was it to the same effect'?
A I think when I met with John I might have said
that it's possible it had gone up slightly, that maybe it
could go for 235, but I still felt it was in that range
somewhere.
Q And any further or subsequent discussions with
him about the value that you recall?
A Just as we would calculate what we were going
to do in negotiations, we would occasionally revise it at
that time, but nothing changed in the my estimation.
Q Other than your attorneys and Nancy and perhaps
myself, did you discuss with anyone else the value of the
house?
A With my current wife.
Q And when were those discussions? I mean, are
we talking about something fairly recent or are we talking
about something back in '99 or 2000, 2001?
A Not in '99, but I would say by 2001 and 2002,
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when we were talking about these negotiations, my wife
happens to be a lawyer so I talked to her as well.
Q You were romantically involved? You and your
present wife were together before you were married, at
least -- maybe not living together, but at least in terms
of together in terms of talking about these things?
A We were living together in November of 2000.
Q It was in that context that those conversations
may have taken place?
A Yes.
Q Did you express an opinion as to a value -- did
she have input into formulating your opinion of the value,
I guess is my question?
A No, not really. She didn't know the area.
Q Were you familiar with the area? I mean,
you've lived there for some time?
A Yeah, I lived there on and off since 1982.
Q I take it you were
A Not in that house. I should clarify. Nancy
and I first lived in a couple of apartments in '82 and '83
in Carlisle, and then we went to Philadelphia for two
years and came back.
Q And you lived on Pomfret Street, which is not
far from this house?
A Correct.
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Q A couple blocks?
A Three blocks.
Q I take it during the time you lived there were
you somewhat familiar with the market, you know what
houses when they came up for sale, how quickly they sold,
that sort of thing?
A Yeah.
Q Did you ever have this house appraised?
A I believe it was appraised in connection with
our mortgage when we bought the house.
Q In '87?
A '97.
Q '97. Did you have a copy of the appraisal or
did the bank --
Currently?
I'll say did you have a copy?
Yes, I got a copy.
At the time it was done in '97?
Yes.
Do you remember who did it?
No, I don't.
Do you still have a copy of it?
Possibly.
Do you remember what the appraised value was
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then?
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A I think it was roughly -- I'd be guessing, but
I know it was more than 205 and I know it was less than
235, I'll say. Somewhere in that range.
Q It was at least as much or something more than
your purchase price?
A Yes.
Q Did you have it appraised after that?
A No. Nancy might have. I don't know whether
no, we didn't refinance it. Well, we did refinance it
once.
Q When was that?
A We refinanced in probably late '98 or early '99
to get a lower rate. But I don't recall whether it was
appraised again or not. It might have been.
Q Was it the same bank or a different bank?
A Same bank, I think.
Q So it's possible they were willing to accept a
prior appraisal?
A Yes.
Q which would have been about two years before
that?
A I don't know. I just don't remember whether it
was appraised again or not.
Q But you didn't have it appraised any other
time?
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A No.
Q And to your knowledge, no one else had it
appraised?
A No.
Q Did you talk to any realtors or any appraisors
or any people who you fell had particular knowledge in the
field as to the value of the house at: any time between
1999 and 2003?
A No.
Q How is it that you learned that the house had
been sold?
A At my son's high school graduation my son told
me Mom sold the house.
Q And that would have been, what, June of 2003?
A Yeah.
Q And what did you do then? Did you look into
it?
A No. I said, great. I knew that she had told
me that she wanted to leave Carlisle and go to school in
Baltimore, and that she was going to try to sell the
house, and I knew that she was going to put it on the
market shortly after we reached our agreement. And so I
was happy for her that she sold it quickly.
Q When was it that you learned the sale price?
A Late July of that same year.
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Q She said?
A I didn't put anything over on you.
Q And you said?
A I think we dropped the subject at that point.
I said, fine, whatever, you know, I just let it drop.
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Q Was it your opinion in May of 2003 that the
house was worth something like 230, 235 thousand dollars?
A Yeah.
Q And it had not changed si9nificantly since you
separated when you thought it was worth 225 to 230?
A I thought realistically she might be able to
get what it's worth and what it might draw on the
market might be two different things. You're asking what
I thought it was worth. I thought it was worth 230. But
I thought it might bring on the market, because of its
unique location and it's kind of a distinctive house, I
thought it might bring 250. But I would said that that
was about the upper limits of it if I was asked.
Q That was simply your opinion?
A Yeah, that's all it was.
Q You hadn't consulted anyone?
A No, not really.
Q In your answers to request of production,
request for the production of documents, you refer to the
realty transfer tax statement of value which was filed at
some point by your wife establishing a market value of
$229,278.
A
Q
A
Right.
Do you know who prepared that?
I believe Paula Light prepared that.
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Q Paula Light was the attorney who recorded the
deed for your wife?
A I believe that's correct.
4 Q And she is in your firm, is that correct?
5 A That's correct.
6 Q I'm sure you had no hand in preparing this?
7 A You're absolutely correct.
S Q Were you aware of this being filed before it
9 was filed?
10 A No.
11 Q Or aware of it existing before you saw it at
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the courthouse?
A No.
Q Do you know how that fair market value was
arrived at?
A Only from what I read on the form itself that I
guess it was -- they used the assessed value and applied
some percentage to it.
Q According to the form, which you can look at
it, it's attached to your petition, there's an assessed
value multiple -- what's in the middle column?
A Common level ratio factor.
Q Do you know what that is?
A I have no idea.
Q Is it your contention that this document
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actually establishes the fair market value of the
property?
A I think it's a document that Nancy or her
representative filed with the Court representing what they
thought the value was pretty close in time to the sale,
so, yeah.
Q And you think that was an expression of her
opinion as to the fair market value, not just a
calculation in accordance with the form and the law that
requires the form?
A Well, I think the form speaks for itself, and I
don't really, you know, want I don't know what her
opinion was other than what she testified at her
deposition a week or so ago.
Q You also say in your answer to the request for
production of documents I had requested copies of all
documents which you claim or believe support the
statements made in paragraph 12 of your petition. And you
answered, and I will read your answer: Any documents
supporting the allegations raised in paragraph 12 were to
be the subject of subpoenas to the plaintiff respondent,
which would be Nancy and other relevant parties, prior to
hearing currently not in the possession of the defendaht
petitioner. Would those be the documents that were marked
as exhibits at the depositions that were taken in your
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attorney's office a week ago?
A Yes.
Q Any other documents you are aware of that
support the statements you made in paragraph 12? And I'll
let you look at paragraph 12 if you want?
A Yeah, the only thing I know of other than the
documents that were used at the deposition -- and these
are not documents that I have ever seen or had my hands
on, but I've been told they exist -- and that is a diary
that was kept by Connie Day, who was a tenant of Nancy's
during the last year Nancy lived on the property.
Q Who told you that it exists?
A My wife told me that it exists because she had
a conversation with Connie Day about it.
Q That this diary exists?
A Yes.
Q And you've not seen the diary?
A I have not.
Q Have you been in contact with Connie Day?
A I have not.
Q Has anyone on your behalf?
A My wife talked to Connie Day about it, and the
information that I got from my wife about what Connie Day
said is what we put in the answers to interrogatories,
that I believe we put that in the answer, that Nancy had
33
1 told Connie Day some time in I believe it was early 2003,
2 that she had met with the realtor Mary Fitts and that the
3 house was worth a lot more than she had originally
4 thought.
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1 A No.
2 Q Is it your understanding that there are entries
3 in the diary that reflect or confirm any of this?
4 A I'm not positive because I haven't seen it.
A
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during the
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agreement the parties estimated the fair market value of
the house in those negotiations to be approximately 229
thousand dollars. The source of that information is what
you just mentioned?
A Yes. I think the 229 thousand dollars figure
was taken from the statement of value that's attached, but
I think in reality the discussions between the parties had
been that it was some where in the range of 225 to 230.
Q In paragraph ten, the approximately 229, that
figure probably comes from the document --
A The thing that was filed at the courthouse
shortly after --
Q with the deed, okay.
A the deed transfer.
Q At the time the property was sold to the Stets
(phonetic)?
A Right.
Q Other than the information you have from Connie
Day, do you have any information to support your
contention that Nancy had information that which was
unavailable to you regarding the house?
A Well, two things led me to believe that in
retrospect, not at the time I heard them, but later in
considering what I heard from Connie Day, and then in
considering these two conversations I had with Nancy.
36
1 There was a conversation that I had with Nancy in, I
2 believe it was April of 2003 before the final documents
3 had been signed, either late April-early May of 2003, and
4 the substance of that conversation was Nancy had returned
5 from a trip to Europe and had signed a property -- or had
6' signed a property settlement agreement, an alimony
7 agreement -- whatever that's called, I forget what the
8 name of that is, whatever that final agreement we signed
9 was, she had signed an earlier version of that before she
10 left on her trip to Europe and that had been sent to John
11 Connelly by you signed by her. And I think her
12 expectation was that that was the last act she needed to
13 perform and that it was a final deal at that point.
14 Because when she came back from Europe she called me
15 about, I think just to tell me she was back, and she
16 mentioned that she hadn't yet received the final version
17 of the agreement with my signature on it. And she said, I
18 can't seem to find out what's going on with that, do you
19 know. And I said, yes, we asked for an additional clause
20 to be added to it, and she said -- she got very angry with
21 me and said I thought we had a deal, you know -- or she
22 said we had a deal. I said, no, we don't have a deal
23 until it's signed, and there was one further clause that I
24 asked to be added and your attorney has it, talk to him
25 about it. And I tried to calm her down, and she just
37
1 remained very angry with me throughout the thing. So that
2 conversation ended.
3 Later on after I found out what the house sold
4 for and the circumstances and how quickly it sold, I came
5 to believe that that indicated to me that maybe she had
6 either already signed the listing agreement or was aware
7 that the buyer was there and she was anxious to get a deal
8 done with me so that she could transfer the house as
9 quickly as possible. So that was one thing that led me to
10 believe that, and that's just based on a conversation and
11 what I later found out.
12 The second thing was her comment during the
13 conversation in July that I guess -- I couldn't tell you
14 this before, but I guess I can tell you now, which I
15 interpreted as you knew something a long time ago that
16 you're just now feeling free to tell me. I had no idea
17 whether that occurred before or after she had signed the
18 divorce settlement.
19 Q The conversation took place after she signed
20 the divorce settlement?
21 A The conversation took place in July of 2003,
22 three months later, but from her saying I couldn't tell
23 you this before, I had no idea how long before was, so I
24 suspected that it might have been bel:ore she signed the
25 divorce agreement.
38
1 Q So I guess what -- in so many words what you're
2 saying is you don't believe the testimony of Mary Fitts
3 about the timing of the discussions between Mary Fitts and
4 Nancy about the value and sell price of the house?
5 A I'm not saying that I don't believe them at
6 all. I believe Mary was trying to be truthful. I think
7 there might have been some -- Mary said that she was aware
8 the buyer was out there and that this house would fit
9 their needs, and she made the comment and the gesture
10 during the deposition that she put that back in her head.
11 And I think that in addition to putting it back in her
12 head she might have mentioned to Nancy, I have a buyer who
13 will possibly go over 300 thousand dollars. I believe
14 that might have occurred. I don't know. Mary didn't
15 recall that kind of a conversation. In fact, said that it
16 didn't happen, but I don't know for sure whether that
17 happened or not, and I'm not -- I don't think that's
18 important whether that happened or not, frankly.
19 Q You're seeking to modify the alimony in this
20 matter in what way?
21 A The clause that was the additional clause I. was
22 telling Nancy about when she got back from Europe was the
23 clause that I had asked to be added, and I drafted it
24 myself, I recall, where we said that if -- the agreement
25 was based on an assumption about her earning capacity, and
39
1 that her actual gross income exceeded $40,000, I believe
2 it was, in any given year during the aSlreement, that the
3 following year I would be entitled to a reduction of
4 one-half of -- by one-half of any amount that that income
5 exceeded $40,000. So my contention is that the sale of
6 the house created actual gross income, which in fact she
7 reported on her tax return even though it was excluded, it
8 was actual gross income, that's my interpretation of
9 actual gross income, to her of roughly 133 thousand
10 dollars, she listed as 138 because she had the original
11 purchase price wrong on her tax return. So it would be my
12 contention that the difference between -- well, that that
13 133 thousand dollars is obviously in excess of $40,000,
14 and therefore, that my alimony payments for 2004, since
15 she received that in 2003, should be reduced by one-half
16 of the amount that that exceeds $40,000.
17 Q So your alimony payments for the year 2004?
18 A Would be wiped out.
19 Q Should essentially be absolved?
20 A Correct.
21 Q Is it your contention that that would have any
22 effect after the year 2004?
23 A I believe it should carryover to whatever
24 extent that that amount applies. In other words, because
25 it says -- if you let me read the clause I can tell you
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what I think about it.
Q Yeah, here.
A It says reduction that will apply in the year
parens A close parens -- following the calendar year
wife's gross income exceeds $40,000, I think that allows
it to apply more than one year. Here in this case we
have -- if she made 133 thousand dollars, she made 93
thousand dollars over and above 40 though, and half of
that 93 thousand dollars should be the reduction in my
alimony payments. And that should apply in 2004, and then
whatever portion of that's left over should apply in 2005.
Q Have you done a calculation of what portion of
that income would have resulted or would have occurred had
she sold the house for what you believe it was worth, say,
235 thousand dollars?
A Well, that portion of it would have been -- if
she had sold it for 235, her actual income on that would
have been 30 thousand dollars, so it would have been less
than 40 thousand.
Q But it's your contention or your suggestion
here that that carries over, so if she has this bubble of
income in 2003 from the sale of the house you should be
able to extend that into 2004?
A If she had made a million dollars on the sale
of the house I'd want it to continue. I don't think the
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principal is any different here.
Q My question isn't what you want, I can guess
what you want. I'm asking is it your contention that the
language in this paragraph allows a carryover?
A I think that carryover issue, this language is
not that clear because it just says parens A I'm not
sure -- I contend that that means it can be applied in
more than one year. But I can see how you could read it
the other way.
Q And you drafted it?
A That's correct.
MR. ANDES: That's all the, questions I have.
MR. CONNELLY: Give me a minute. I want to
talk to him.
(Discussion held off the record.)
(The deposition was concluded at 9:50 a.m.)
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42
COUNTY OF CUMBERLAND
SS
COMMONWEALTH OF PENNSYLVANIA:
I, Karen C. Albright, a Notary Public,
authorized to administer oaths within and for the
Commonwealth of Pennsylvania, do hereby certify that the
foregoing is the testimony of MICHAEL REED.
I further certify that before the taking of
said deposition, the witness was duly sworn; that the
questions and answers were taken down stenographically by
the said Reporter-Notary Public, and afterwards reduced to
typewriting under the direction of said Reporter.
I further certify that said deposition was
taken at the time and place specified in the caption sheet
hereby. I further certify that I am not a relative or
employee or attorney or counsel to any of the parties, or
a relative or employee of such attorney or counsel, or
financially interested directly or indirectly in this
action.
I further certify that said deposition constitut s
a true record of the testimony given by the said witness.
IN WITNESS WHEREOF, I
this 10th day of February,
2005. /
041
C/~'J
Not
...
KA'PtEN C. ALe".....,., Na&ary fl'uWfo
c;. """. -"uD'hfnCounty
't :?008
Multi-Page 1M
$229,278 - carry
MICHAEL D
20:19 23:25 33:8 accepted [IJ . REED
18:7 22:11 31:15 31:19
-$- 2003 [l5J 17:23 accordancel1] 31:9 32:25 -B-
$229,278 [ll 29:22 17:23 18:22 19:10 According [I] answered [2J
19:14 20:19 27:8 30:19 10:6 B[lJ
$40,000 [5) 39:1 acknowledged [I] 3l:19 12:3
27:14 29:1 33:1 backup [I J
39:5 39:13 39:16 36:2 36:3 37:21 1l:23 answering [1] 4:12 13:1
40:5 39:15 40:22 act [1] 36:12 answers {S] 10:13 bad [1] ]7:3
2004 [OJ 1:13 39:14 action [2) 1:4 29:18 32:24 33:6 Baltimore [1] 27:20
-&- 39:17 39:22 40:10 42:18 42:9 bank[4J 25:14 26:]5
&[1] 1:21 40:23 actual [oJ 10:10 anxious 11) 37:7 26:]5 26:16
2005 [2J 40:] 1 42:22 39:] 39:6 39:8 apartments [I) 24:20 based [21 37:10
-'- 205[2] 5:20 26:2 39:9 40:17 APPEARANCES [IJ 38:25
'02[1] 218[2) 21:4 21:4 added [31 36:20 1:17 became [I] 33:1)
22:2 22[IJ 36:24 38:23 applied [2] 30:17 began [2J 17:9
'82[1J 5:6
24:20 225[41 addition [I} 38:11 41:7 ]7:9
'83[IJ 24:20 11:16 22:19 additional [2) applies [I] beginning [2]
29:5 35:8 36:]9 39:24 22:1
'84[1] 5:9 229[3) 35:2 35:5 38:21 applY'[4} 40:3 22:14
'87[IJ 25:ll 35:9 address [2] 3:]2 40:6 40:10 40:ll behalf [5J 8:6
'97[3) 25:12 25:13 230[01 1l:16 22:19 6:20 appraisal [21 25:13 2l:15 21:18 32:2]
25:18 29:2 29:5 29:9 administer [I] 42:4 26:18 33:25
'98[11 26:12 35:8 afterwards [I J 42:10 appraised [8) 25:8 belief [1] 34:14
'99[5] 20:5 20:17 235[5) 23:]) 26:3 again [4) ]4:]8 25:9 25:24 26:7 better [1] 8:]1
23:24 23:25 26:12 29:2 40:15 40:17 15:14 26:14 26:23 26:]4 26:23 26:24 between [IOJ 3:2
25[1] 12:7 against [2) 15:23 27:3 9:20 11:16 19:22
-1- 250[lJ 29:12 21:22 appmisors [II 27:5 19:24 22:18 27:7
agent [lJ 33:ll April [2] 9:20 35:7 38:3 39:12
I [2] 1:13 11:6 36:2 bifurcate [3) 18:1]
lO[IJ 34:24 -3- ago (3) 31:]4 32:1 April-earlY[I] 36:3 18:21 19:2
37:]5
100[2J 5:14 33:6 3[1) 2:4 agree [3]9:2 12:15 area [2) 24:14 24:15 birth [1/ 5:4
lOth [1] 42:22 30[1] 40:18 19:7 arrived [1] 30:15 bit [1] 28:18
12 [4} 31:18 31:20 300[lJ 38:13 agreement [25J 1l:7 assessed [3 J 20:21 blocks [3) 6:4
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12th (2) 1:15 6:1] -4- 15:ll 15:15 16:13 asse:ssment [2J 20:2] board [I] 23:6
133 [3J 39:9 39:13 40[2J ]9:3 ]9:4 19:10 21:8 born [3] 4:20 5:6
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138[1] 19:20 20:6 27:22 8:22 bought[lJ
39:10 -5- 35:1 36:6 36:7 ]1:5 11:12 12:22 25:10
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1419[2}3:14 6:14 50[l} 15:9 37:25 38:24 39:2 assume [3J 9:6 bring [2J 29:10
525[IJ 9.'" 22:14
170[1] 11:14 1:15 Albright (3) 1:11 ., 29:12
17013 [I) 3:15 58[IJ 5:25 42:3 42:23 assumption [IJ 38:25 broke[IJ 12:]2
18 [I} 17:21 5th [I] 5:11 alimony [20J ]2:ll Aston [2J 6:23 bubble [1] 40:21
1982 [3J4:19 12:11 12:14 12:17 6:24 buyer [3J
5:6 13:10 13:1 ] 15:14 attached [2J 37:7
24:17 -6- 30:20 38:8 38:12
1984 [1/ 5:8 16:6 16:9 17:5 35:6 buying [I]
60[1/ 15:10 17:16 17:19 17:25 atl!ended [5] 33:9
1986 [I) 7:2 ]8:3 ]8:4 9:12
36:6 14:3 14:4 14:19
1997[2)5:18 7:5 -8- 38:19 39:14 39:17 ]9:]8 -C-
1999[4)5:11 7:24 40:10 attorney [l0} 3:16 C(3) ]:ll
8:55 [IJ l:13 allegations [I] 42:3
22:23 27:8 31:20 1':16 7:22 8:6 42:23
allows [2) 40:5 8:14 8:16 30:1 calculate [1] 23:15
-2- -9- 41:4 36:24 42:15 42:]6 calculation [2J 31:9
20(1) 5:7 9[1/ 4:19 AMIS[1] ]:1 attorney's [1] 32:1 40:12
2000 [3}9:20 93 [2J 40:7 40:9 among [I} 11:]7 attorneys [OJ 7:11 calendar [3] 10:5
23:24 9:50[1) 41:]6 amount (10) 12:5 13:22 ]6:]9 21:15 10:9 40:4
24:7 12:9 23:]8 34:16
2000-2123 [lJ 16:9 16:14 calls [IJ 7:18
J:5 18:1 18:24 18:25 August [I) 7:24 calm [I) 36:25
2001 [IS] 6:]1 -A- 39:4 39:J6 39:24 authorization [1]
9:16 9:21 10:4 a.m[2J 1:13 4]:16 amounts [2J 16:11 9:8 canceled [I] 21:24
10:11 10:16 10:19 able [2J 29:6 16:12 'iluthorized [I) capacity[lJ 38:25
10:2] 14:2 14:15 40:23 42:4 caption [II
19:]8 19:24 20:8 above [lJ 40:8 ANDES [1) 1:]4 Avenue[3J 5:14 42:13
23:24 23:25 absolutely [lJ 30:7 1:18 1:19 2:4 6:2 33:6 Carlisle [1J 3:14
2002 [l3J absolved [lJ 3:ll 22:]3 41:12 aware [8) 5:14 6:1 7:3
10:]2 39:19 angry [2J 8:4 24:21 27:]9 33:18
10:18 10:20 14:3 accept [11 36:20 2]:]4 30:8 30:11
14:15 J4:]8 26:17 37:1 32:3 33:11 37:6 carries [I] 40:21
18:20 acceptance [IJ
18:2] 18:22 19:1 9:24 answer [8] 4:7 /38:7 carry [3J 39:23 41:4
4:7 22:4 22:5 away [2J 6:2 6:4 4]:5
---............ ... T ODln<<
. T FOLTZ NATALE 717-540-02201717-393-5101
Index Page I
carved - family
MICHAEL D. REED
Multi-Page TM
carved [11 16:1 32:23 33:1 33:6 2:3 3:8 3:14 14:13 14:13 34:6
case [1] 40:6 33:14 33:17 34:5 date [5] l:l3 ~:18 distinctive [11 29:11 equation [11 15:13
central [1) 7:2 34:18 35:18 35:24 9:20 10:10 19:25 distributed [IJ 12:4 equity [OJ 15:8
certain [4) 10:24 considering [2) 35:24 dated [1] 19:10 disturbed [lJ 28:17 15:19 15:22 19:23
13:13 ]7:25 19:2 35:25 days [IJ 7:13 divided [1] 20:10 20:13 21:l1
constitutes [1) 42:19 8:22 21:22
certainly [2] 3:22 consulted [3] deal [6J 33:12 36:13 division [I] )6:4
11:23 7:21 36:21 36:22 36:22 divorce [9] especially [IJ 10:24
certification [1 J 7:23 29:]6 37:7 1:8 ESQUIRE [2J 1:l9
3:3 contact [2J 8:5 dealing [I] 7:10 16:23 17:3 1:22
9:3 18:12 20:4 37:18
certify [5] 42:5 32:19 DECEMBER[lJ 37:20 37:25 essentially [2J 15:8
42:7 42:12 42:14 contacted [2J 33:20 1:13 document [3] 30:25 39:]9
42:19 33:2] decided [1] 33:10 31:3 35:10 establishes [I] 31:1
chance[lJ 4:8 contend [l} 4):7 deed [3J 30:2 35:13 documentation [6J establishing [lJ
change [I] 20:1 contention (7) 30:25 35:14 10:24 11:1 11:2 29:21
changed [lJ 23:3 35:20 39:5 39:12 defendant [3) 1:8 12:3 12:23 15:7 estimated [1] 35:1
23:17 29:4 39:21 40:20 41:3 1:23 31:23 documents [9J 29:19 estimation [IJ 23:]7
characterize [I) context [lJ 24:8 Delaware [1] 6:25 31:]6 31:l7 31:19 Europe [4] 36:5
13:20 continue (2) 18:4 dependent [I J 17:20 31:24 32:3 32:7 36:10 36:14 38:22
40:25 32:8 36:2
check [1] 34:7 continued[IJ deposed [lJ 3:25 dollars (16) eventually [2J 18:11
child [2J 17:25 18:5 23:2 deposition [loJ 1:9 5:20 19:3
conversation [14] 11:14 11:l6 15:10
children [2J 4:20 31:14 32:7 34:19 29:2 35:3 35:5 exact [lJ 21:4
5:22 11:4 16:25 20:20 34:20 38:10 41:16 28:10 28:19
2]:20 28:2 32:14 38:13 39:10 39:13
chuckled [IJ 28:18 36:1 36:4 37:2 42:8 42:12 42:19 40:7 40:8 40:9 EXAMINA nON [21
chuckles [I] 28:17 37:10 37:13 37:19 depositions [2] 3:22 40:15 40:18 40:24 2:2 3:10
circumstances [IJ 37:2J 38:15 31:25 Don [l] 7:23 11:3 exceeded [2J 39:1
37:4 conversations [2J describe [I J 15:1 13:23 39:5
CIVIL [2J 1:4 24:8 35:25 determination [1] done [5] 13:4 20:22 exceeds [2J 39:16
1:5 copies (2) 14:10 13:4 25:18 37:8 40:12 40:5
claim [I] 31:l7 31:l6 diary [6J 32:9 32:15 down [5] 11:4 except [2] 3:4
claiming [I] copy [4J 25: 13 25:]6 32:17 33:25 34:3 11:6 12:12 36:25 21:19
15:25
25:17 25:22 34:6 42:9 excess [I] 39:13
clarify [1] 24:19 correct [24] Dickinson [I] 33:18 drafted [3] 19:13 exchangc[1] 13:7
4:16
clause [61 36:19 5:16 5:23 7:6 DlETTERICK [1] 38:23 41:10 exchanged [I] 14:7
36:23 38:21 38:2J
38:23 39:25 9:10 10:8 ]4:5 1:21 draw [I] 29:7 exchanges [I I 13:19
clear [1] 41:6 ]4:20 16:20 16:2] difference [I) 39:12 drop [I] 28:25 excluded [1] 39:7
]8:12 18:13 19:5
close[2]3J:5 40:4 19:8 22:16 24:25 different [4] 23:3 dropped [I] 28:24 Exhibit [I I 11:6
Colonial [1] 30:3 30:4 30:5 26:]5 29:8 41:] duly [2] 3:9 42:8 exhibits [I] 31:25
6:22 direction [I J
column [I) 30:7 33:5 33:16 42:11 during [IOJ 6:]5 exist [1] 32:9
30:21
39:20 41:11 directly [2] 7:11 ]7:23 19:17 23:4 existing [1] 30:]]
comment[3J 12:18 correspondence ill 42:17 25:3 32:11 34:25
37:12 38:9 13:20 disagreement [1] 37:12 38:10 39:2 exists [3] 32:12
comments [2] 34:10 32:13 32:15
counsel [3J 3:2 15:16
34:18 42:15 42:]6 discuss [4] 15:14 -E- expectation [1] 36: 12
commit[lJ 20:15 counterproposal [I) 15:15 23:2 23:19 early [6] 9:21 explain [2] 7:13
Common [2J 1:1 discussed [14) 10:3 20:]3
9:23 9:8 ]2:]8 26:12 33:1
30:22 county [5] 1:2 10:22 11:l5 13:14 33:8 express [2J 24:11
Commonwealth [2) 28:7
6:25 20:22 21:2 15:4 15:18 15:20 earning [I] 38:25
42:2 42:5 42:1 15:21 20:]4 21:10 expression [IJ 31:7
communications [1] couple [2J 21:15 2l:l7 21:21 economic [1J 9:4 extend [1J 40:23
24:20 21:24 effect (2) 23:8
8:17 25:J extent [2] 13:11
complete [2] 4:6 Court [2J discussion [12J 10:23 39:22 39:24
1:) effort [1)
4:7 3J:4 11:12 12:7 12:9 17:15
concludeUJ J5:12 courthouse [3J 12:12 14:7 17:1 eitherr51 7:24 -F-
21:2 17:11 18:19 19:19 18:2 2l:l4 36:3
concluded [I) 41:]6 30:12 35:]] 21:25 41:15 37:6 fact [3] 15:5 38:15
confirm [1) 34:3 created [I) 39:6 discussions [26) elaborate [IJ 4:8 39:6
confused [I) 18:16 Cumberland [3J 7:10 7:11 7:12 employee [2) 42:15 factor [IJ 30:22
connection [IJ 25:9 1:2 21:2 42:1 7:]7 9:3 9:]7 42:16 fair [4J 30:14 31:1
Connelly [12) 1:2] current [2J 10:8 9:22 13:18 13:21 end [2J 31:8 35:1
14:6 16:8 J6:11 ]4:1 19:25
1:22 2:5 13:23 23:21 ended [4J fairly [IJ 23:23
17:21 17:24 19:21 12:16
14:4 ]4:19 21:20 cut [I] 4:6 20:9 22:6 22:15 13:] 18:6 37:2 Fall [I] 22:23
22:7 22:10 23:5 22:25 23:5 23:13 entities [I) familiar [2J 24:15
36:]] 41:13 13:8
Connie [13] -D- 23:22 34:15 34:]6 entitled [lJ 39:3 25:4
32:10 35:7 38:3
32:]4 32:19 32:22 D[5J 1:7 1:9 dispute [3] entries [2J 34:2 family [II 5:15
12:2
Index Page 2
HUGHES ALBRIGHT FOLTZ NATALE 717-540-02201717-393-5101
Multi-Page Thl
far - might
MICHAEL D. REED
far [41 6:2 18:24 13:1 important [IJ 38:18 kept[IJ 32:10 24:J7 24:20 24:23
24:24 34:8 gone [2) 23:10 34:8 included [I J 18:5 kids [2J 7:] 8 J7:2 25:3 32:11
February [2J 19:14 graduating [IJ 17:21 including [l] 17:16 kind[s] 12:12 12:16 lives (1133:18
42:22 graduation [II 27:12 income [') 39:J 28:J7 29:11 38:J5 living [3J 5:13
feeling [I) 37:16 great [2) 27:18 33:12 39:4 39:6 39:8 Kissinger [ISJ 7:24 24:5 24:7
fell [1) 27:6 Green [I) 6:22 39:9 40:5 40:13 8:5 8:17 8:20 LLP[111:21
felt (3) 7:14 7:15 40:17 40:22 9:9 9:12 9:24 location [I J 29:11
23:11 gross [5]39:1 39:6 indefinite [SJ 12:14 1l:3 13:23 J4:4 look [4J 10:6
39:8 39:9 40:5 27:16
few [I) 7:13 15:17 17:5 J8:3 J9:18 20:7 21:16 30:19 32:5
field [IJ 27:7 guess ['1 13:10 18:24 22:7 22:15 looked [2)
13:2] 24:13 28:]5 indicate [1) knew['J 11:13 14:9
figure [41 18:3 30:17 37:13 37:14 ]0:3 21:1
27:18 27:2J 37:15
18:4 35:5 35:10 38:J 41:2 indicated (3) 12:]3 knowledge [71 lower[3J ]8:3
figures (lJ guessing [IJ 21:7 37:5 9:25 18:24 26:13
12:24 26:1 13:18 14:8 ]4:]2
file [II 16:23 indirectly [IJ 42:17 19:22 27:2 27:6
filed [7J 18: Il 18:22 -H- information [1] 32:23 KNOWN [IJ 1:1 -M-
34:10 34:13 35:3
29:20 30:8 30:9 half[ll 40:8 35:18 35:19 35:20 managing[IJ 12:25
31:4 35:11 hammer [IJ inheritance (3) JJ :20 -L- March [8J 9:16
filing[l] 19:16
3:4 hand [21 30:6 15:6 15:25 L[31 10:11 ]0:18 10:20
42:21 1:14 1:18
final [8)12:10 18:23 hands [I) initial [2J 10:23 1:19 13:]6 14:15 14:18
19:13 19:16 36:2 32:8 22:2
36:8 36:13 36:16 happy [1) 27:23 12:6 language [3J 19:7 marital (lJ
initiated [1) 11:4 41:4 41:5 8:21
finalized [11 J7:3 head[3] 17:7 38:10 input (II last [2J marked [I) 31:24
financial [31 7:10 38:12 24:12 32:11 36:]2 market ['J
7:14 heard [21 35:23 intention [11 33:22 late [7J 14:1 18:15 25:4
9:]8 27:22 29:8 29:]0
financially [II 42:17 35:24 interest [3] 11:24 18:22 26:12 27:25 29:21 30:14 31:1
hearing [l J 13:7 15:25 33:7 36:3
fine [2J 20:16 28:25 31:23 31:8 35:]
firm [10]10:25 held(l] 41:15 interested [2J 33:9 law[14J 1:4 1:14 marriage [2J 4:]8
10:25 42:17 ]:18 10:25 10:25
1l:12 ]2:3 12:22 help(lJ 10:14 11:12 12:3 ]2:22 4:21
13:8 15:6 [5:24 hereby [4) 3:2 interests [2J 10:25 13:8 15:6 15:23 married[3J 4:15
21:23 30:4 3:4 42:5 42:14 1]:3 21:23 3]:9 33:18 6:]5 24:4
first [8) 6:21 7:21 hereunto [1) 42:21 interpretation [IJ lawyer [3] 17:9 Mary [OJ 33:2
8:4 8:16 9:2 39:8 38:2 38:3 38:6
high[s] 17:22 20:24 20:16 24:2
20:3 22:15 24:20 2J:5 21:7 27:12 interpreted (I J 37:15 learn [IJ 28:1 38:7 38:14
fit[IJ 38:8 higher [1) ]8:25 interrogatories [4J leamed [2J 27:10 matter (3) 7:22
Fitts [3J 33:2 38:2 Holly [2] 10:6 10:7 ]0:]4 27:24 8:2 38:20
38:3 3:14 32:24 matters [I J ]6:3
6:14 lea,rt [31 24:5 24:5
following (3) 13:17 home [3J involved [1) 24:3 26:4 maY[8J 10:3 ]9:10
6:5
39:3 40:4 6:8 7:13 iSSUC[lJ 41:5 leave [IJ 27:19 19:21 20:6 22:4
follows(lJ 3:9 items [IJ 12:20 24:9 29:1 36:3
foregoing [l J house [54) 5:22 itself [2] 30: 16 ledl[2] 35:22 37:9 mean [4J 21:21
42:6 7:3 1l:13 ]1:14 31:11 left[.J 7:13 12:2
forget [II 36:7 11:]5 13:J4 14:8 23:22 24:15 33:15
16:1 17:24 36:10
form [OJ 3:5 30:]6 14:16 15:7 15:8 -1- 40:]1 means [II 41:7
30:19 31:9 31:10 15:19 15:19 15:22 LEMOYNE[lJ meeting [31J 9:11
31:1l 15:22 19:20 19:23 J[I) 1:22 9:]4 9:17 10:2
1:16
FORMERLY [1) 19:23 20:9 20:10 JAMES [IJ 1:21 less [21 10:5 10:11 1O:J5
]:1 20:14 20:21 21:11 January [111 4:J9 26:2 40:J8 ]0:21 11:18 11:23
formulating [IJ 24:12 21:11 21:17 2J:22 10:3 10:11 1O:J5 letterroJ 8:25 9:2 11:24 ]2:8 ]2:J6
22:7 22:17 23:1 10:19 10:21 14:14 9:5 9:7 9:20 13:2 13:16 14:3
found [2] 37:3 23:20 24:J9 24:24 19:14 ]9:]8 19:24 9:23 14:14 14:]5 14:18
37:1] 25:8 25:10 27:7 20:8 le:tters [3J 14:6 15:1 ]5:2 15:18
frankly [1) 38:J8 27:10 27:13 27:2] John [OJ 1:22 13:22 14:9 14:]1 ]5:21 17:1 18:2]
free[ll 37:16 28:J5 29:2 29:1l 15:2 2]:20 23:9 l,;vel [2J 17:19 30:22 J9:17 20:7 21:16
33:3 33:12 34:11 21:21 22:1 22:2
front [1)10:9 34:14 35:2 35:21 36:10 light[3J 17:7 29:25 meetings [3J
fund [2J 11:25 15:12 37:3 37:8 38:4 joint [2] ] 1 :2J ]]:22 30:1 10:10
]6:J8 34:16
funds [2] 12:4 38:8 39:6 40:14 JR[2] 1:22 3:8 limited [lj 7:]2 9:5
13:5 40:22 40:25 JulY[1] 5:18 7:5 limits [lJ 29:13 memory[lJ
houses [lj 25:5 7:24 20:5 27:25 list [31 mentioned [5) 12:20
37:13 37:21 ]]:5 ]]:6 20:12 35:4 36:16
-G- 11:7 38:]2
garbled [II 4:10 -I- June[lJ 27:14 listed [lj 39:10 met[2J 23:9 33:2
general [1 ] ]]:J7 idea [4J 19:]] 30:24 listing [1) 37:6 Michael [OJ 1:7
gesture [II 38:9 37:16 37:23 -K- litigation [IJ 3:18 1:9 2:3 3:8
given [2J 39:2 immediately [IJ Karen [3J 1:11 live [4J 5:24 5:25 3:J4 42:6
42:20 5:J2 42:3 42:23 116:7 6:9 middle [lj 30:21 I
giving [2J 12:23 implicit [lJ 21:19 keep [2J 11:25 ]7:18 lived [1) 7:4 24:J6 might [13J 17:10
~-- .. ~nu~UT 1'"Ol.TZ NATALE 717-540-02201717-393-5101
Index Page 3
Miller - remember
MICHAEL D. REED
Multi-Page TM
23:9 26:8 26:14 42:3 42:24 31:20 32:4 32:5 24:23 rate (1) 26:13
29:6 29:7 29:8 note[.] 12:]6 33:5 34:24 35:9 portion [3J 40:11 ratio ['] 30:22
29:10 29:]2 37:24 nothing [4] 7:19 4]:4 40:12 40:16 reach [1] ]2:]7
38:7 38:12 38:14 23:3 23:]7 34:22 parens [3] 40:4 positive [2J 21:6 reached [S} ]5:]5
Miller [3J 4:24 Novembef[2J 24:7 40:4 41:6 34:4 ]6:]4 18:23 19:]1
5:2 5:3 33:8 part[.] 6:24 possession [I) 31:23 27:22
million [1] 40:24 now [1] 5:2 6:7 participated (1) 3:22 possible [4) 10:4 read[41 30:16 31:19
minute ['] 4]:13 8:13 ]8:16 28:]5 particular [IJ 27:6 23:10 26:17 37:9 39:25 41:8
modify [I] 38:19 37:14 37:16 parties [8J 3:3 possibly [2J 25:23 reading [1] 33:5
Mom[1J27:13 number [1) 21:23 11:18 ]5:3 17:15 38:13 realistically [IJ 29:6
money [l] ]5:25 31:22 35:1 35:7 practicing ['] 7:] realities ['J 7:]4
months [2J 13:17 -0- 42:15 prepared [2] 29:24 reality [1 J 35:7
partner['J 12:25 29:25
37:22 oaths ['] 42:4 really [5] 7:16
Moreland [3] 5:14 objections ['1 3:4 party [.)20:8 prepanng [1] 30:6 16:1 24:]4 29:17
6:2 33:6 Paula [2J 29:25 present ['J 6:13 31:12
mortgage [2] 11:13 obviouslY[1J 39:13 30:1 24:4 33:15 realtor (2) 33:2
25:10 occasional ['] 7:17 payment [1] ]5:11 press [.)11 :24 33:10
mother[.] ]1:20 occasionally ['J payments [4J 12:15 pretty [I] 31:5 realtors ['J 27:5
move[.] 6:12 23:16 39:14 39:]7 40:10 previous [' J 9:5 realty [1] 29:20
occurred [5] 6:12
moved [SJ 5:21 13:24 37:17 38:14 pecentage [I] ] 2:20 price [6)26:5 27:24 reassessment [' J
7:2 7:23 20:12 40:13 Pennsylvania [1J 28:3 28:16 38:4 20:22
20:17 1:2 1:16 3:15 39:11 received [4) 11:21
17:22 Octobef[I] 33:8 6:23 7:2 42:2 principal [3J 19:12 20:20 36:]6 39:15
movmg [1) off [41 4:6 15:3 42:5
multiple [1) 30:21 ]9:]5 41:] recent (2) 7:22
24:17 41:15 pension [1J 11:20
must [2J 8:23 20:4 problem[3J ]6:16 23:23
offer [1J 8:20 12:6 12:4 12:6 12:10 17:4 22:10 recollection [6J 10:8
17:18 18:1 18:6 12:21 13:5 ]5:12
-N- 18:8 ]8:23 people[IJ 27:6 process [2) 4:2 13:13 13:15 16:22
19:6 20:23 21:6
name [3] 2:2 office [3] 9:12 percent [1 J ]2:7 production [3 J 29:18 recollections [I}
3:12 36:8 20:8 32:1 percentage [4] 12:4 29:]9 31:]6 34:7
names [3] 4:23 OFFICES [2J 1:14 13:4 15:] 1 30:18 property [1') 5:25 record ['J 3:13
11:21 11:22 1:]8 percentages ['1 ]2:8 7:5 12:2 12:10 41:15 42:20
Nancy [4'1 1:1 offset [2J 15:8 perform [1 J 36:13 15:13 31:2 32:11 recorded[1J 30:1
1:2 4:15 5:10 15:23 perhaps [2J 22:23 34:25 35:15 36:5 records [I]
6:15 7:9 7:]2 old [2J 5:2 17:21 36:6 10:3
23:18 reduced [3J
8:10 8:11 9:23 once [II 26:10 proposal [I] 9:8 19:4
11:21 12:5 12:13 person [I] 33:9 39:15 42:10
15:17 J6:19 one[lo] 6:17 10:10 Peter [31 5:1 5:6 proposals [21 9:3 reduction [3J 39:3
]4:19 10:]8 ]2:21 17:17 9:25
16:25 17:2 17:6 17:20 40:3 40:9
17:11 18:19 19:22 17:18 18:6 20:11 petition [6) proposed (1) 8:21
20:11 27:2 28:]9 ]8:11 Reed [8) 1:2 1:7
20:3 20:9 20:20 34:15 36:23 37:9 18:21 19:1 30:20 provided ['} 34:9 1:9 2:3 3:8
2]:17 2]:]8 23:]8 40:6 41:8 31:18 34:24 Public [4] 1:12 3:14 4:15 42:6
24:19 26:8 28:2 one-half [3J 39:4 petitionef(1) 31:24 42:3 42:10 42:24 refef[I] 29:19
31:3 31:22 32:11
32:25 34:10 35:20 39:4 39:15 phew [2J 28:11 purchase [31 6:5 referred [I) 10:15
35:25 36:1 36:4 open (2) 13: 11 ]6:3 28:17 26:5 39:]] refinance (2) 26:9
38:4 38:12 38:22 opinion [9J 7:16 Philadelphia [3] purchased ['J 5:]7 26:9
Nancy's [2] 32:10 23:3 24:11 24:12 7:1 7:1 24:21 7:3 7:4 refinanced [11 26:12
34:19 29:1 29:14 3]:8 phone [3] 7:17 pursued [2) 17:14 reflect [1) 34:3
need[3] 6:19 12:18 31:13 34:13 17:]3 28:2 ]7:15 regard [I] 16:23
34:7 opportunity [1) 22:5 phonetic [lJ 35:]6 put[1J 11:22 27:21 regarding [1J
options [2J Pike [2J 3:14 28:19 28:22 32:24 8:21
needed [3] 7:15 17:18 6:14
32:25 38:10 9:3 14:15 ]5:19
15:14 36:12 18:24 place ['] 1:14 putting ['] 16:14 34:11 35:21
needs ['] 38:9 original [1 ] 39:10 9:15 14:23 ]5:1 38:1] rejection [1] 9:24
negotiable [3J 17:5 originally [I J 33:3 17:12 24:9 37:19 related [1] 13:8
37:21 42:13 -Q-
17:6 18:20 outside [1] 6:25 relating [1] 10:24
negotiate [I J 17:10 plaintiff [0] 1:3 questions [3J 4:4
own [2] 6:7 6:16 1:10 1:20 31:21 relative [3J 6:2
negotiation ['J 14:14 owned [I} 6:22 33:7 33:10 41:12 42:9 42:14 42:]6
negotiations [11 owns [1]6:8 PLEAS [1] ]:1 quickly [41 25:5 relevant [IJ 31:22
13:18 13:21 17:15 27:23 37:4 37:9 remained[2J 5:22
23:]6 24:1 34:25 point [10] 8:24
-p- 10:1 1l:l 12:13 37:1
35:2 12:24 13:22 15:4 -R- remember [15] 5:19
never [I] 23:3 P-H-E-W['J 28:12 15:17 16:3 17:17 raised [1 J 31:20 7:20 8:25 9:J5
next [2J 16:23 16:24 paid[l) 5:]9 18:1 18:2 ]9:20 range [4J 15:9 10:1 13:24 16:12
NORTH [lJ 1:]5 paper [I] 12:25 28:24 29:21 36:13 23:11 26:3 35:8 ]6:13 16:24 18:8
Notary I'] ]:12 paragraph [8) 31:18 Pomfret [2J 7:3 18:14 20:19 25:20
Index Page 4
HUGHES ALBRIGHT FOLTZ NATALE 717-540-02201717-393-5101
Multi-Page 1M
removed - whole
MICHAEL D. REED
25;24 26;22 27;13 27;23 28;15 supporting [I] 31;20 true [21 8;19 42;20
removed [IJ J7;25 -s- 35:15 37;3 37;4 Smprise [2] 28;5 truthful [I] 38;6
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reported [I) 39;7 SAMUEL [3] 1:14 somewhere [3J 11;15 42;8 twO[16J 4;20 5;17
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requested [I] 31:16 41;8 spoken [I] 33:8 ]9;]6 24;5 24;6 unhappy [I] 20:23
requesting [I) 11;2 seeing [IJ 8;25 Spring [2J 20;18 testified [2] 3;9 unique [II 29;11
requires [I J 31;10 seeking [2J 15;5 20;18 31:13 UP['J 13;1 15:4
reserved [I] 3;5 38;19 SS[I] 42;1 testify [1] 33;22 16;1 17;3 18;6
residence [4J 5;15 seem [I] 36;]8 started [IJ 15;3 testimony (3) 38:2 21;1 21:9 23;10
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residents [I) 6;16 sent [21 10;7 36:10 statement [2J 29;20 thereafter [I] 18;2 upper[IJ 29;13
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--.mwn<.' AT UlnnHT FOLTZ NATALE 711-540-02201717.'393-5101
wife - younger
MICHAEL D. REED
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HUGHES ALBRIGHT FOLTZ NATALE 711-540-02201711-393-5101
, Settlement Statement
U.S. Department of Housing
and Urban Development ~
,r
OMB No. 2502-0265
Type of Loan
1. o FHA
4. OVA
2. 0 FmHA
5. 0 Conv. Ins.
3. 181 Conv. Unlns File Number
P133-293/Stout
Loan Number Mortgage Insurance Case Number
03-6120-064900908-
1
NOTE: This form is furnished to give you a stalement of aclual settlement costs. Amounts paid to and by the settlement agent are shown.
Items marked "p.D.en were paid outside of closing; they are shown here for informational purposes and are not included in the totals.
NAME AND ADDRESS OF BORROWER:Robert L. Stout CynthIa D. Stout
858 Alexandar Sprlng Road, Carlisle, PA 17013 858 Alexander Sprlng Road, Carlls/e, PA 17013
NAME AND ADDRESS OF SELLER: Nancy A. Reed a/lr/a Nancy Amls
100 Mooreland Avenue, Carlisle, PA 17013
PROPERTY
LOCATION:
WaShington Mutual Bank, FA
,PA
100 Moore/and Avenue
Carlls/e, PA 17013
NAME AND ADDRESS OF LENDER:
SETTLEMENT AGENT:
PLACE OF SETTLEMENT:
TIN:
O'Brlen, Beric & Schelllr
17 West South Street, Cerlls/e, PA 17013
25-1708515
iETTLEMENT DATE: 08/15/2003 RESCISSION DATE:
SUMMARY OF BORROWER'S TRANSACTION K. SUMMARY OF SELLER'S TRANSACTION
J. GROSS AMOUNT DUE FROM BORROWER: 400. GROSS AMOUNT DUE TO SELLER:
. Contract Sales Price S3'0 0"0 nn 401. Contract. S&\es Price <338 000.00
. Personal Property 402. Personal property
. Settlement!! charges 10 borrower: 403,
from line 1400) $10,447.14
404.
405.
,DJUSTMENTS FOR ITEMS PAID BY SELLER IN ADVANCE: ADJUSTMENTS FOR ITEMS PAID BY SELLER IN ADVANCE:
6. City/lown taxes 10 406. Cilyftown Taxes to
7. County Taxes 08/15/2003 to 01/01/2004 $418.60 407. County Taxes 08/15/2003 to 01/01/2004 $418.60
8. Assessments 10 408. Assessments to
9. 409.
O. 410.
,. 411.
2. 412.
l. GROSS AMOUNT DUE FROM BORROWER: $348,865.74 420. GROSS AMOUNT DUE TO SELLER: $338,418.60
J. AMOUNTS PAID BY OR IN BEHALF OF BORROWER: 500. REDUCTIONS IN AMOUNT DUE TO SELLER:
. Deposit or earnest money $5,000.00 501. Excess deposit (see lns.trucllons)
. Principal amount of new loan(s) $270,400.00 502. Settlement charges to seller (line 1400) $11,999.40
. Existing loan(s) taken subject to 503. Existing loan(s) taken subject to
504. Payoff of first mortgage loan Bank of America $162,653.88
505. Payoff of second mortgage loan
Deposit wi Lander $295.00 506.
507.
508.
509.
ADJUSTMENTS FOR ITEMS UNPAID BY SELLER: ADJUSTMENTS FOR ITEMS UNPAID BY SELLER:
no. Cityltown taxes to 510. Cityllown taxes 10
~11. Counly taxes 10 511. County taxes to
?12. Assessments 07/01/2003 to 08/15/2003 $322.46 512. Assessments 07/01/2003 10 08/15/2003 $322.46
!13. 513.
114. 514.
!15. 515.
~16. 516.
117. 517.
!18. 518.
IN THE COURT OF COMMON PLEAS
CUMBERLAND COUNTY, PENNSYLVANIA
NANCY A. REED,
PLAINTIFF
VS
NO. 2000-2123
MICHAEL D. REED,
DEFENDANT
DEPOSITION OF: ROBERT STOUT
TAKEN BY:
DEFENDANT
BEFORE:
ANTHONY J. BALSHY, REPORTER
NOTARY PUBLIC
DATE:
PLACE:
NOVEMBER 17, 2004, 12:35 P.M.
JAMES, SMITH,
DIETTERICK & CONNELLY
134 SIPE AVENUE
HUMMELSTOWN, PENNSYLVANIA
APPEARANCES:
SAMUEL L. ANDES, ESQUIRE
FOR - PLAINTIFF
JAMES, SMITH, DIETTERICK & CONNELLY, LLP
BY: JOHN J. CONNELLY, JR., ESQUIRE
FOR - DEFENDANT
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FOR DEFENDANT
Robert Stout
TABLE OF CONTENTS
WITNESS
DIRECT
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EXHIBITS
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DEFENDANT'S EXHIBIT NO.
No.1: Settlement sheet
No.2: Contract
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PRODUCED
AND MARKED
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ROBERT STOUT, called as a witness,
being sworn, testified as follows:
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DIRECT EXAMINATION
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BY MR. CONNELLY:
Q Mr. Stout, we're here today to ask you
a few questions about the purchase of the property
located at 100 Mooreland Avenue in Carlisle. Do you
understand the purpose of today's proceeding?
A I do.
Q Other than speaking to me on the
telephone and speaking to your wife, have you spoken
to anyone else about your testimony here today?
A No.
Q And you received a subpoena to bring
records along regarding the purchase of that
property, is that correct?
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I did.
Q And you have those with you?
A I have everything I could find.
Q Let me first ask you when you entered
into the contract to purchase this property, what
date?
A
May 24, 2003.
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And do you have a copy of that contract
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with you?
A
Q
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I do. That's just the front page.
Do you have all of the pages?
Yes, I think.
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Q Can you give me a little history on
your looking at properties in this general area, the
Old Mooreland neighborhood or anywhere around there?
When did you begin looking for a house in that area?
A We purchased the house in May of 2003.
We probably got serious about looking for homes in
early 2002, 12, 14, 16 months before we actually
purchased the home. Our initial scope was not just
Old Mooreland. We were looking New Mooreland, Old
Mooreland. We even looked at places in Camp Hill.
Q What was the price range within which
you were looking as far as purchase price is
concerned?
A We started out low and moved higher.
We started out wanting something 200 to 250 range,
and as we got a dose of reality and low mortgage
rates and high costs, the top end of that moved up to
about 350.
Q When did you first discuss properties
with Mary Fitts? When did she fiJest become involved
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with you in showing you real estate?
A I'd be hard pressed to give an exact
date, but I would say probably eight to 10 months
before we purchased the Mooreland property.
Q And was she showing you properties in
these areas?
A She showed us several properties in
that area. That's why we came upon her because she
listed several properties in the area.
Q Do you recall the price range of the
properties you had seen in the area within six to
eight months of when you purchased the 100 Mooreland
property?
A Yes. I'd say they were anywhere from
200 to $375,000.
Q And Mary was involved in showing you
those properties?
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In some, but not all.
Q At what point did you receive any
indication that this property may come on the market?
Do you recall?
A Well, it was in that period. Like I
said, eight to 10 months before we purchased it that
she thought this one would be coming on. When we
looked at a house with her and we told her we were
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interested in the area, she said she thought this
would be coming on the market at some point.
Q And this would be eight to 10 months
prior to purchase?
A That's the best I can do.
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Q
But it wasn't a week or two; it was
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months?
A No. It was months.
Q During the period when you first
started working with Mary up until when you purchased
it, was there ever a discussion as to the sale price
of this home, even in a ballpark?
A Boy, there may have been a ballpark,
but I don't recall a number.
Q Would it be fair to say that it was in
excess of 300 rangewise or don't you recall?
A I don't recall. I really don't.
Q Now, at what point did you first look
at this home that was the subject of the contract?
A Maybe a day or two before that date.
Q Day or two before the date?
A Before May 24, 2003. I looked at it
one day. I think we had a contract two or three days
later maybe. I don't know. It was a very short
period of time.
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Q And when did Mary Fitts contact you and
tell you that this property was on the market?
A Was on the market? Probably the day
before or the day that we went to see it. I'd say
from the time she told us it was on the market to the
time we had a contract was clearly less than a week.
Probably more like four days.
Q The sale price was 338,000, is that
correct?
A I don't know if we went back and forth
at all or not. 345 sticks in my head, but 338 is
what it is.
Q And do you remember whether a higher
price was negotiated down?
A That's what I thought. 345 stuck in my
head, that we countered at 338, but it may have been
338 and we just said, yes, we were ready to buy at
that point in time.
Q In addition to your agreement for the
sale of the real estate, you also have your
settlement sheet with you, is that correct?
A I do.
(Settlement sheet marked as Defendant's
Exhibit No.1.)
BY MR. CONNELLY:
Geiger & Loria Reporting Service .. 800-222-4577
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Q I'm showing you a document marked
Defendant's Exhibit 1. Is that a copy of the
settlement sheet from your closing on the property?
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It is.
5 (Contract marked as Defendant's Exhibit
6 No.2.)
7 BY MR. CONNELLY:
8 Q Mr. Stout, I'm showing you a document
9 marked Defendant's Exhibit 2. Can you identify what
10 that document is?
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house.
Yes.
It's the contract to buy the
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Q And I did notice on the contract that
it is signed and dated. Excuse me. Can you pullout
your original? I'm having trouble reading the copy.
A What do you want?
Q On the last page, the signature page,
the acceptance, can you read a date on there?
MR. ANDES: The 15th of August I think
It's on my copy. 8/15/02.
We're on different documents.
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it
is
2003.
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says 5/24/03.
BY MR. CONNELLY:
This
Q And I note on the bottom of each page
from start all the way through they weren't initialed
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at the bottom. Do you recall why?
A I don't.
MR. CONNELLY: All right.
I don't have
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any other questions.
(The deposition was concluded at 12:50
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COUNTY OF LEBANON
ss.
COMMONWEALTH OF PENNSYLVANIA
I, Anthony J. Balshy, Reporter-Notary
Public, authorized to administer oaths within and for
the Commonwealth of Pennsylvania and take depositions
in the trial of causes, do hereby certify that the
foregoing is the testimony of Robert Stout.
I further certify that before the
taking of said deposition, the witness was duly
sworn; that the questions and answers were taken down
stenographically by the said Anthony J. Balshy, a
Reporter-Notary Public, approved and agreed to, and
afterwards reduced to typewriting under the direction
of the said Reporter.
I further certify that the proceedings
and evidence are contained fully and accurately in
the notes taken by me on the within deposition, and
that this copy is a correct transcript of the same.
In I have hereunto
subscribed my hand this
NOTARIAL SEAl
ANTHONY J BALSHY
Notary Public
PALMYRA BOROUGH, LEBANON COUNTY
My ComrnllIlan Explrea Oct 9,2007
. Settlement Statement
U.S. Department of Housing
and Urban Development ~
,r
OMB No. 2502.0265
Type of Loan
1.0FHA
4. OVA
2. 0 FmHA
5. 0 Conv. Ins.
3. 181 Conv. Unins File Number
P133-293/Stout
Loan Number
03-6120"064900908-
1
Mortgage Insurance Case Number
NOTE: This form is furnished to give you a statement of actual settlement costs. Arnounts paid t<l and by the settlement agent are shown.
Items marked "p.a.c" were paid outside of closing; they are shown here for informational purposes and afe not included in the totals.
NAME AND ADDRESS OF BORROWER:Robert L. Stout CynthIa D. Stout
858 Alexander Spring Road, Cartlsle, PA 17013 858 Alexander Sprtng Road, Cartlsle, PA 17013
NAME AND ADDRESS OF SELLER: Nancy A. Reed a1k1a Nancy Amls
100 Mooreland Avenue, Cart/sle, PA 17013
NAME AND ADDRESS OF LENDER: Washington Mutual Bank, FA
,PA
PROPERTY
LOCATION:
100 Mooreland Avenue
Cartls'e, PA 17013
SETTLEMENT AGENT:
PLACE OF SETTLEMENT:
TIN:
O'Brten, Bartc & Scherer
17 West South Street, Cart/sl., PA 17013
25-1708515
;ETTLEMENT DATE: 0811512003 RESCISSION DATE:
SUMMARY OF BORROWER'S TRANSACTION K. SUMMARY OF SELLER'S TRANSACTION
1. GROSS AMOUNT DUE FROM BORROWER: 400. GROSS AMOUNT DUE TO SELLER:
. Contract Sales Price '''8 onO on 0401. Contract Sales PrICe ~338 000.00
. Personal Property 402. Personal property
. Settlements charges to borrower: 403.
from line 1400) $10,447.14
404.
405,
,DJUSTMENTS FOR ITEMS PAID BY SELLER IN ADVANCE: ADJUSTMENTS FOR ITEMS PAID BY SELLER IN ADVANCE:
6. Ci\yl\own taxes to 406. City/tawn Taxes to
7. County Taxes 08/15/2003 to 01/01/2004 $418.60 407. County Taxes 08/15/2003 to 01/01/2004 $418.60
8. Assessments to 408. Assessments to
9. "",09.
O. 410.
,. 411.
2. 412.
l. GROSS AMOUNT DUE FROM BORROWER: $348,865.74 420. GROSS AMOUNlT DUE TO SELLER: $338,418.60
J. AMOUNTS PAID BY OR IN BEHALF OF BORROWER: 500. REDUCTIONS IN AMOUNT DUE TO SELLER:
. Deposit or earnest money $5,000.00 501. Excess deposit (see InsltuctioM)
. Principal amount of new loao(s) $270,400.00 502. Settlement charges to seller (Hne 1400) $11,999.40
. Existing Ioan(s) taken subject \0 503. Existing loan{s} taken subject to
504. Payoff of first mortga~;e loan Bank of America $162,653.88
505. Payoff of second mortgage loan
Deposit wi Lender $295.00 506.
507.
506.
509.
I'.DJUSTMENTS FOR ITEMS UNPAID BY SELLER: ADJUSTMENTS FOR ITEMS UNPAID BY SELLER:
!10. Cilyltown taxes to 510. Cityltown taxes to
!11. County taxes to 511. CountytaxBs to
112. Assessments 07/01/2003 to 08/15/2003 $322.46 512. Assessments 07/01/2003 \0 08/15/2003 $322.46
!13. 513.
!14. 514.
!15. 515.
!16. 516.
!17. 517.
!18. 518.
'-1 (Rev. 3/86)
OMS No. 2502.0285
J. TOTAL SALES/BROKER'S COMMISSION PAID FROM PAID FROM
BASED ON PRICE $338,000.00 @ 2.5 %" ;?8,450.00 BORROWER'S SELLER'S
DIVISION OF COMMISSION (LINE 700) AS FOLLOWS: FUNDS FUNDS
AT AT
.. SETTLEMENT SETTLEMENT
$8,450.00 '0 ERA-NRT, Inc.
. CommissiOn paId at seltlement $8,450.00
Transaction Fee to ERA-NRT, Inc. $100.00 $100.00
SETTLEMENT CHARGES
U II EM:; PAY ABLI: IN I,;UNNEC IIUN Wit H LUAN
. LOllnoriglnlltlonfee %
Loan discount %
. Appraisal fee to: Washington Mutual Bank, FA $325.00
Credilreportto:
. leoders inspection fee
. Mortgege Insurance application fee to
. Assumption fee
. Funding & Review Fee to Washington MUtual Bank, FA $330.00
Tax Procur8QQut/Traaking Fee to Tran:samerica $50.00
Tax Research/payment service Eee to Washington MUtual Bank, FA $31. 00
. Flood Detenn1nation r.e to Lereta Corp. $13.00
J I rEM:; Ht:UUIHED BY Lt:NUEH I U BE PAIU IN AUVANCt:.
.1n\tlTtls\1rom 08/15/2003 I. 08/31/2003 @ $34. 26/dso/ $582.42
. Mortgage Insurance premium lor mos. to
H818Id insurance premium lor yrs. to
Flood insurance premium for yrs. to
JU. RE:;t:HVE5 UEPO:;II EIJ Wit H LE:NIJEH.
1. Hazard InsLl"ance 2. 00 months@
2. Mortgage in5Ulance months @
3. City property laxes months@
4. County property laxes 6. 00 months@
5. Annual a!l5eSsments months @
5. Flood insurance months @
,. School taxes 2. 00 months@
!l. months@
9. Aqgre~te Accountinq Escrow Ad;ustment
JO. III LI:. CHARGES:
$44.33 permonlh
pefmonth
permonlh
$90.93 per month
per month
per month
$213. 10 per month
per manU...
$88.66
$545.58
$426.20
($363.68)
1. Settlement or clOsing fee to
2. Abslracl or tille search to
3. Tille &xamirlation to
4. Tille insurance binder to
5. Document preparation 10
6. Notary lees 10 Cash
7. Altorney'sfaes to
(includes above items Numbers
B. Titleinsurenceto O'Brien, Baric Ii Scherer
(includesabova items Numbers: 1101-1105 1107-1111
9. lender's coverege
O.Qwner'scoverage $2,Q48.75
1. Ends 1100-$50 1300-$50 1900 $50
2. Insured C~osing Ltr.
3
10. GUVEHNMt:::N I KI:.COROING ANU 'RANSf't:H GHAHl:;I:.S:
$6.00
$270,400.00 I
$338,000.00 )
$35.00
1. RecordIng fees: Deed $38. SO ; Mortgage $68.50 ; Releases $107.00
2. CilY/<XIUf'.ty tel'J'$\amps: D." $3,380.00; Mortgage $3,380.00
3. StatetaKlslamps: D... $3,380. 00 ; Mortgage $3,380.00
4
5.
00. AUUII IUNAL 5E I I Lt:MENl CHAHGE:;.
1. Survey to
2 Pest Inspection to
3. O'Brien, Baric & Scherer (Overnight Fee) $10.00
4. Dar~.ne Moyer, Tax Col~ector ('03 school bil~ at disc) $2,557.21
5. Car~j:de Borough ffa ter Dept. (water/sewer actlO4315A) $59.40
6 Wire Transrer Fee to Washjngton MUtua~ Bank, FA $35.00
7.
~ ~ -
nn TnTAI <::r:TTI t:1\Jlj:;t..lT rI-lARr.:j:;l:::
5
b
B
9
10
1i
1::
"
i4
is
STANDARD AGREEMENT FOR THE SALE OF REAL ESTATE
A/S-2K
This form recommended and approved for, but not reslrickd to use by, the memhers of the Pennsylvania Association of REALTORS@(PAR).
SELLER'S BUSINESS. RELATIONSHIP WITH PA LICENSED BROKER
BROKER (Company) ';.1' /,,: ,(." ,/' . " " I\. i i PHONE ,'/ ".
ADDRESS i ,':, .,'" ; ": "" FAX '
BROKER IS THE AGENT FOR SELLER. Designaled Agent(s) for Seller, if applicable:
OR
Broker is NOT lbe Agent for Seller and is aJan: D A{;ENT FOR BUn:R CI TRANSACTION LICENSEE
BUYER'S BUSINESS RELATIONSHIrWITH fA LICENSED BROKER
, .' PHONE
FAX
BROKER (Company)
ADDRESS
BROKER IS THE AGENT FOR BUYER. Designated Agent(s) for Buyer, if applicable:
OR '
Broker is NOT the Agent for Buyer and is aJan: .1Sl{lGENT FOR SELLER D SUBAGENT FOR SnU:R
D TRANSACTION LICENSEE
When the same Broker is Agent for Seller and Agent for Buyer, Broker is a Dual Agent. All of Broker's licensees arc also Dual Agents UNLESS
there are separate Designated Agents for Buyer and Seller. U the same Licensee is designated for Seller and Buyer, the Licensee is a Dual Agent.
I. m:bts) !agreement, dated
SELLER(Sl:
).'
, is between
i
2
..
. called ~;,Seller." and
,l.....-~
-, ,~
i
(,.
BUYER(S):
_,PI
'j'".
f"'t I 1:'
2. PROPERTY (1'-98) Seller hereby agrees to 'sell and convey to Buyer, who hereby ':~grees to purchase:
ALL THAT CERTAIN lot or piece of ground with buildings and improvements thereon erected, if any, known as:
,
, called "Buyer:'
,
10
"
in the of
County of .; ,... in the Commonwealth of Pennsylvania, Zip Code
Identification (e.g., Tax lD #; Parcel #; Lot, Block; Deed Book. Page, Recording Date)
"
13
14
10
i7
18
19
3. TERMS (1-02)
(A) Purchase Price
IS
~>".t{ '"
..~ In
;!
U.S. Dollars
17
1C
1']
which will be paid to Seller by Buyer as follows:
I. Cash or check at signing this Agreement:
2. Cash or check within _ days of the execution of this Agreement:
3.
4, Cash, cashier's or certified check at time of settlement:
$
$
$
$
TOTAL $
(B) Deposits paid on acconnt of purchase price to be held by Broker for Seller, unless otherwise stated here:
20
2li
21
'!1
2?
22
1'3
2;'j
24
/'j
25
25
26
(C)
(D)
(El
Seller's written approval to be on or before:
Settlement to be on .;,. ; ,'-
,
Conveyance from Seller will be by fee simple deed of special warranty unless otherwise stated here:
2tJ
, or before if Buyer and Seller agree.
!i
27
'dJ
28
29
25
jO
(F) Payment of transfer taxes will be divided equally between Buyer llnd Seller uo\es:;; otherwi!>e ~tated here:_
3D
31
31
32 (G) At time of settlement, the following will be adjusted pro-rata on a daily basis belw(~en Buyer and Seller, reimbursing where applicable: taxes j~'
33 (see Information Regarding Tax Proration); rents; interest 011 mortgage assumptions; condominium fees and homeowner association fees, if 33
34 any; water andlor sewer fees, if any. together with any other licnable municipal service. The charges are to be pro-rated for the period(s) 34
3) covered: Sellcr wi\1 pay up to and including the date of settlement; Buyer will pay for all days following settlement, unle% othcrwi::;c ~tated ,V.i
~ here: Jb
")7 37
38 4. FIXTURES & PERSONAL PROPERTY (1-00) 31)
39 <A) INCLUDED \0 this sale and purchase price are all existing ilems permanently installed in the Property, free of liens, including plumbing; :l~
4G heating; lighiing fixtures (including chandeliers and ceiling fans); water treatment systems; pool and spa equipment; garage door openers :to
4i and transmitters; television antennas; shrubbery, plantings and unpolled trees; any remaining heating and cooking fuels stored on the 41
~2 Property at the time of settlement; wall to wall carpeting; window covering hardware, shades and blinds; built-in air condithmen;-, built-in 4~
48 appliances; and the range/oven unless otherwise staled. Also included: ;13
44
45
"
(8) LEASED items (not owned by Seller):
-1"
.L'~ \) r.\'LJ~..~ ANn rI\!.1cU....\l{,\,!!\), JHd~'~
INFORMATION Rg(;,lRlIIN'; 'I "x I'RO~ N{f
.,',1'\11 ;y
For purposes of prorating real estate taxes, the "periods covelcd" hy theta~ bi 'sa~:i$ ~:Jm~~jN~,
the Philadelphia, Pit~sb~rgh, and Scranton school districts, tIHgla~.. hillf-. ,eorl ~f:l; tJ.;) )a;~;i\h J to
covered by the tax btll IS July L to June 30, . "I~" l1i' I '1:f,'! if '
ATlON~ ' ~H B~ II; AN>>im !;EL
} l:t!U't!!
11calI(lnAl~i\eIY hi a Buyer, said provIsion sh,dl he s,ltlsfied by COmmUllH..'a-
,lit I pr,), ISI(>ns IlldY he satisfied only by COIlIIlIUlllt.llHlII/dellvery bemg made
con on that require;, or allows cOlTmUlicaLi(mf.Jelivery to a Seller. said provision shall he satisfied by communicil-
for Seller, if any. If there is no Broker for Sellcr, all iuch pnY1isions tn; y he satisfied only by communication/delivery being made
n ess otherwise agreed to by the parlies.
,0 6.. MORTGAGE CONTINGENCY (1-02) 50
61 0 WAIVED. This sale is NOT contingent on mortgage financing. 61
62 I3l ELECTED 62
63 (A) This sale is contingent upon Buyer obta!ning mortgage financing as follows: 63
64 I. Amount of mortgage loan $ 64
65 2. Minimum Term years 65
66 3. Type of mortg~ge 66
67 4. Interest rate ~o; however, Buyer agrees to accept the interest nile as may be committed by the mortgage lender, not to 61
6B exceed a maximum interest rate of 9'0. 68
69 5. Disl:OUlll points, loan origination, loan placement and other fees charged by the lender as a percentage of the mortgage loan (excluding 69
70 any mortgage insurance premiums or VA funding fee) not to exceed ~_o;o (~if not specified) of the mortgage loan. 10
71 The interest rate and fees provisions required by Buyer are satisfied if a mortgage lender makes available to Buyer the right to guarantee an 71
"12 interest rate at or below the Maximum Interest Rate specitied herein with the percentage fees at or below the amount specified herein. Buyer 72
73 gives Seller the right, at Seller's sole option and as permitted by the mortgage lender and applicable laws, to contribute financially, without 73
74 promise of reimbursement, to the Buyer and/or the mortgage lender to make the above temlS available to Buyer. 74
75 (B) Within ~ DAYS (10 days if not specified) of the execution of this Agreement, Buyer will make a completed, written mortgage application 75
76 for the mortgage terms specified above to a responsible morlgage lender. The Brol~er for Buyer, if any, otherwise the Broker for Seller, is 76
77 authorized to communicate with th~ mortgage lender for the purposes of assislting in the mortgage loan process. 71
78 (C) I. Mortgage commitment date .' , ' . If a written commitment is not received by Seller by the above date, Buyer 7B
79 and Seller agree to extend the Il\ortgage commitment date until Seller terminates this Agreement in writing by notice to Buyer. 79
su 2. Upon receipt of a mortgage commitment, Buyer will promptly deliver a copy of the commitment to Seller. 80
81 3. Seller has the option to terminate this Agreement in writing, after the mortgage commitment date if the mortgage commitment: 81
82 a. Is not valid until the date of settlement, OR 82
83 b. Is conditioned upon the sale and settlement of any other property, OR 83
84 c. Contains any other condition not specified in this Agreement that is not satisfied and/or removed in writing by the mortgage lender 84
85 within -1........... DAYS after the mortgage commitment date in paragrafllh 6 (C) (1). 85
6& 4. If this Agreement is terminated as specitied in paragraphs 6 (C) (1) or (3), or the mortgage loan is not obtained for settlement, all deposit monies 86
87 paid on account of purchase price will be returned to Buyer. Buyer will be responsible for any premiums for mechanics' lien insurance andlor 87
Be title search, or fee for cancellation of same, if any; AND/OR any premiums for nood insurance, mine subsidence insurance and/or fire insur- 86
69 ance with extended coverage, or cancellation fcc, if any; AND/OR any appraisal fees and charges paid in advance to the mortgage lender. 89
gO (D) If the mortgage lender requires repairs to the Property, Buyer will, upon receipt, deliver a copy of the mortgage lender's requirements to Seller. 90
91 Seller will, within ~ DAYS of receipt of the mortgage lender's requirements, notify Buyer whether Seller will make the required repairs 91
~)2 at Seller's expense. 92
!B I. If Seller chooses to make the required repairs, Buyer will accept the Property and agree to the RELEASE set forth in paragraph 25 of this 93
84 Agreement. 94
95 2. If Seller chooses not to make the required repairs, or if Seller fails to respond within the time given, Buyer will, within ~ DAYS, 95
96 notify Sellcr in writing of Buyer's choice to terminate this Agreement OR make the required repairs at Buyer's expense and with Seller's 96
~il pennission, which will not be unreasonably withheld. If Seller denies Buyer permission to make the required repairs, Buyer may, within 97
98 ~ DAYS of Seller's denial, temlinate this Agreement, in which case all deposit monies paid on account of purchase price will be 96
99 returned promptly to Buyer and this Agreement will be VOID. 99
10D (E) Seller Assist 100
101 '0' NOT APPLICABLE 101
102 0 APPLICABLE. Seller will pay: 102
103 0 $ ,maximum, toward Buyer's costs as permittt:~d by the mortgage lender. 103
104 0 104
105 FHANA, IF APPLICABLE 105
106 (F) It is expressly agreed that notwithstanding any other provisions of this contract, Buyer will not be obligated to complete the purchase of the 106
t07 Property described herein or to incur any penalty by forfeiture of earnest money deposits or otherwise unless Buyer has been given, in accor- 107
108 dance with HUD/FHA or VA requirements, a written statement by the Federal Housing Commissioner, Veterans Administration, or a Direct 108
109 Endorsement Lender setting forth the appraised value of the Property of not less than $ (the dollar amount to be 109
110 inserted is the sales price as stated in this Agreement). Buyer will have the privilege and option of proceeding with consummation of the con+ 110
111 tract without regard to the amount of the appraised valuation. The appraised valua.tion is anived at to determine the maximum ffiOltgage the 111
112 Department of Housing and Urban Development will insure. HUn does not warrant the value nor the condition of the Property. Buyer should 112
113 satisfy himselflherselfthat the price and condition of the Property are acceptable. 113
1'14 Warning: Section 1010 of Title 18, V.S.C., Department of Housing and Urban Development and Federal Housing Administration 114
115 Transactions, provides, "Whoever for the purpose of . . . influencing in any way the action of such Department, makes, passes, utters or pub- '115
116 Iishes any statement, knowing the same to be false. . . shall be fined under this tith~ or imprisoned not more than two years, or both." 116
117 (G) U.S. Department of Housing and Urban Development (HUD) NOTICE TO PURCHASERS: Buyer's Acknowledgement 117
lIB 0 Buyer has received the HUD Notice "For Your Protection: Get a Home Inspection" (see Notices and Information on Property Condition 1 j8
119 Inspections). Buyer understands the importance of getting an independent home inspection and has thought about this before signing this 119
120 Agreement. 12,0
121 Buyer's Initials Date 121
112 (H) Certification We the undersigned, Seller(s) and Buyer(s) party to this transaction each certify that the terms of this contract for purchase are 122
123 true to the best of our knowledge and belief, and that any other agreement entered into by any of these parties in connection with this transac+ 123
124 tion is attached to this Agreement. 124
125 7. INSPECTIONS (1-02) 125
126 (A) Seller agrees to permit inspections by authorized appraisers, reputable certifiers, insurer's representatives, surveyors, municipal officials and/or 126
127 Buyer as may be required by the mortgage lender, if any, or insuring agencies. Sclle:r further agrees to permit any other inspections required by 127
128 or provided for in the tenns of this Agreement. Buyer has the right to attend all inspections. 128
1,Q tll, ll""<>r ~<>~~r'."" ....~ ..:_.... 'u _~1._ _ ___
'\V Il~~"J " I,,) '.it' " ',.,K.(>i ~~JI'~',J~t~"10.KI"L~AI,~.I'. .1. _1;"\Af\!("f:\i~.~
The appraised value of the Property is used in determining the IlLlxilll'1I11 al110unt :)f Jl'~ loan and may be different from the purchase price and/or market
value.
NOTICES AND IN.'ORMATION ON PROPERTY CONDlIION INSPECTIONS
u.s. Department of Housing and Urban Development
FHA Loans:
For YouriProtectinn: Get a IIllme In'ipection
What the FHA Does for Bnyers . . . and What We Don't Do
What we do: FHA helps people become homeowners by insuring mortgages forlcnders. This allows lenders to offer
others who may not qualify for conventional loans. Because the FHA lfsures the loan for the lender, the buyer pays
es to first-time buyers and
w down~paymeTlt.
What we don't do: FHA does not guarantee the value or condition of your potentia] new home, If you ti
cannot give or lend you money for repairs, and we cannot buy the home back from yml.
me after closing, we
That's why it is so important for you, the buyer, to get an independent home inspection. Before
your putential new home and give you the information you need to make a wise dec' ...
Appraisals and Horne Inspections are Different
As part of our job insuring the loan, we require that the lender condu .
for lenders; home inspections are for buyers. The lender does an' a
To estimate the value of a house
To make sure that the house meets FHA mi
To make sure that the house is market,
Appraisals are not home inspections.
e inspector to inspect
ent from a home inspection. Appraisals are
ortilatio appraisal - information you need to make a wise decision. In a home inspection, a
your pot!ntial new home to:
onstruction, and mechanical systems
placed
e major systems; equipment, structure.; and finishes
What Goes
A home inspe ,
inspection gives.
conditioning, and
n
es the r an impartial, physical evaluation of the overall condition of the home and items that need to be repaired or replaced. The
ed report on the condition of the structural components, exterior. roofing, plumbing, electrical, heating, insulation and ventilation, air
iors.
Be an Informed Buyer
It is your responsibility to be an informed buyer. Be sure that what YOll buy is satisfactory in every respect. You have the right to carefully examine your
potential new home with a qualified home inspector. You should arrange to have a home inspection before you purchase your home. Make sure your COIl-
tract states that the sale of the home depends on the inspection.
If you believe you have been subject to discrimination because of your race, color, religion, sex, handicap, familial status, or national origin, you should call
the HUD Fair Housing and Equal Opportunity Complaint Hotline: (800) 669-9777.
This statement must be delivered to you at the time of initial loan application. Return one copy to your lender as proof of notification and keep one copy for
your records.
You, the borrower(s), must be certain that you understand the transaction. Seek professional advice if you are uncertain.
147
148
1..9
150
151
(C) If Buy~r is not satisfied with the condition of the Property as stated in any wriUcn report, Buyer wilL 1..\)
"'.0 Option 1. Within the time given for completing inspections: 148
1. Accepllhe Property with the information stated in the report(s) and agree to the RELEASE set forth in paragraph 25 of this Agreement, OR 149
2. Terminate this Agreement in writing by notice to Seller, in which case all deposit monies paid on account of purchase price will be returned l:iO
promptly to Buyer and this Agreement will be VOID, OR lb1
3. Enter into a mutually acceptable written agreement with SeUer providing for any repairs or improvements to the Property and/or any credit 152
to Buyer at settlement, as may be acceptable to the mortgage lender, if any. 15:1
Should efforts to reach a mutually acceptable agreement fail, Buyer must choose to accept the Property or tenninate this Agreement within 15.f
the time given for completing inspections and according to the provisions in paragraph 8(C) (Option I) I and 2. b~
o Option 2. Within the time given for completing inspections: 155
I. Accept the Property with the information stated in the report(s) and agree to the RELEASE set forth in paragraph 25 of this Agreement, lS1
UNLESS the total cost to correct the conditions contained in the report(s) is more than $ Lit!
2. If the total cost to corred the conditions contained in the report(s) EXCEEDS the amount specified in paragraph S(e) (Option 2) 1, 15,1
Buyer will deliver the report(s) to Seller within the time given for inspection. ltiu
a. Seller will, within ~ DAYS of receiving the rcport(s), inform BUyt:r in writing of Seller's choice to: Ibi
(I) Make repairs before settlement so that the remaining cost to repail' conditions contained in the repOlt(s) is less than or equal to 162.
the amount specified in paragraph 8 (C) (Option 2) I. lii3
(2) Credit Buyer at settlement for the difference between the estimated cost of repairing the conditions contained in the report(s) 164
and the amount specified in paragraph 8 (C) (Option 2) I. This option must be acceptable to the mortgage lender, if any. 165
(3) Not make repairs and not credit Buyer at settlement for any costs 'lO repair conditions contained in the report(s). 166
b. If Seller chooses to make repairs or credit Buyer at settlement as speci.fied in paragraph 8 (C) (Option 2) 2, Buyer will accept the 167
Property and agree to the RELEASE set forth in paragraph 25 of this Agreement. Iti8
c. If Seller chooses not to make repairs and not to credit Buyer at settlement, or if Seller fails to choose any option within the time lti9
given, Buyer will, within ~ DAYS: 170
(I) Accept the Property with the information stated in the report(s) and agree to the RELEASE set forth in paragraph 25 of this I'll
~~~~OR In
(2) Telminate this Agreement in writing by notice to Seller, in which case all deposit monies paid on account of purchase price will 173
be returned promptly to Buyer and this Agreement will be VOID. 17-1
9. WOOD INFESTATION INSPECTION CONTINGENCY (1-02) m
o WAIVED. Buyer understands that Buyer has the option to request that the Property be inspected for wood infestation by a certified Pest Control 17b
...operator. BUYER WAIVES THIS OPTION and agrees to the RELEASE set fortih in paragraph 25 of this Agreement 117
t:J'~ ELECTED ... 178
/(A) Within ~ DAYS (15 days if not specified) of the execution of this Agreement, Buyer, at Buyer's expense, will obtain a written "Wood- 1"9
Destroying Insect Infestation Inspection Report" from a certified Pest Control Operator and will deliver it and all supporting documents and 130
drawings provided by the Pest Control Operator to Seller. The report is to be made satisfactory to and in compliance with applicable laws, mort- 181
gage lenders, and/or Federal Insuring and Guaranteeing Agency requirements, if any. The inspection will include all readily visible and 182
accessible areas of all structures on the Property except the following structures, which will not be inspected: Ill3
Hl.1
1 :i:~
1:;.3
bl
1 ~,'i
156
151
Fill
1::>9
Ibi!
161
162
ld
;64
!f);i
\&6
lfi7
lti8
Hi:)
17il
171
172
173
iN
115
17l'
111
lIb
179
130
181
Hl2
183
iii.l
185
(B) If the inspection reveals evidence of active infestation(s), Seller agrees, at Seller's expense and before settlement, to treat for active infesta- 185
tion(s), in accordance with applicable laws.
(C) If the inspection reveals damage from active infcstation(s) or previous infestation(s), Buyer, at Buyer's expense, has the option to obtain a writ- 1M
ten report by a professional contractor, home inspection service, or structural engineer that is limited to structural damage to the Propeny caused 168
by wood-destroying organisms and a proposal to repair the damage. Buyer will deliver the structural damage report and corrective proposal to 1H9
Seller within ~ DAYS of delivering the original inspection report.
(D) Within ~ DAYS of receiving the structural damage rep011 and corrective proposal, Seller will advise Buyer whether Seller will repair, at 191
SeHer's expense and before settlement, any structural damage from active or previous infestation(s). 192
(E) If Seller chooses to repair structural damage revealed by the report, Buyer agrees to accept the Property as repaired and agrees to the RELEASE 191
set forth in paragraph 25 of this Agreement.
(F) If Seller chooses not to repair strudural damage revealed by the report or fails to respond within the time given, Buyer, within -...----L DAYS, \%
will notify Seller in writing of Buyer's choice to:
1. Accept the Property with the defects revealed hy the inspection, without abatement of price, and agree to the RELEASE set forth in para-
graph 25 of this Agreement, OR
2. Make the repairs before settlement, if required by the mortgage lender, if any, at Buyer's expense and with Seller's pennission, which will
not be unreasonably withheld, in which case Buyer accepts the Property and agrees to the RELEASE sel forth in paragraph 25 of Ihis 211[)
Agreement. If Seller denies Buyer permission to make the repairs, Buyer may, within -...----L DAYS of Seller's denial, terminate this 201
Agreement in writing, in which case all deposit monies paid on account of purchase price will be returned promplly to Buyer and this ::02
Agreement will be VOID, OR
3. Terminate this Agreement, in which case all deposit monies paid on account of purchase price will be returned promptly to Buyer and 20-1
Ihis Agreement will be VOID.
RESIDENTIAL LEAD-BASED PAINT HAZARD REDUCTION ACT NOTICE REQUIRED FOR PROPERTIES
BUILT BEFORE 1978 (1-02)
o NOT APPLICABLE
o ' APPLICABLE
(A) Seller represents that Seller has no knowledge concerning the presence of lead.based paint and/or lead-based paint hazards in or about the
Property, unless checked below.
o Seller has knowledge of the presence of lead-based paint and/or lead-based paint hazards in or about the Property. (Provide the basis for
determining that lead-based paint and/or hazards exist, the location(s), the condition of the painted surfaces, and other available infonna~
tion concerning Seller's knowledge of the presence of lead-based painl and/or lead-based paint hazards.)
ii}6
181
1B8
H:9
100
191
1116
190
1~2
1!!:3
194
Hi4
is:
1\.16
197
196
I!.iI
1 ~JB
i:jS
198
199
200
2ijj
:2ll2
20]
204
:'05
;iOJ
illS
2nG
]0.
,OG
2,]1
2<18
2u9
2Hl
201
20a
209
21D
211
212
20
214
211
212
;'13
21;1
215
216
215
(B) RecordsIReports: Seller has no reports or records pertaining to lead-based paint and/or lead-based paint hazards in or ahout the Properly, 216
.1.' H.\}"","; I \ " >..>1 'XA.-.I I\}\o .'''\1 '. P~,"..-;.
Property Inspection: Inspections of the Property can be performed by professional contractors or a home inspector, and may include inspections of: struc-
tural components; roof; exterior windows and exterior doors; exterior siding, fascia, gutters, and downspouts; appliances; electrical, plumbing, heating, and
cooling systems; water penetration; and any other items Buyer may select. Other inspections or certifications might include: Environmental Hazards (c.g..
Mold, Indoor Air Quality, Asbestos, Underground Storage Tanks, etc.), Electromagnetic Fields, Wetlands Inspection, Flood Plain Verification, Property
Boundary/Square Footage Verification, and any other items Buyer Illay select. Buyer is advised to investigate easements, deed and use restrictions (includ-
ing any historic preservation restrictions or ordinances) that apply to the Propel1y and to review local zoning ordinances.
Flood Plains: If the Propelty is located in a flood plain. Buycr may be required to carry additional insurance.
Property Boundary / Square Footage: Buyer is advised that Sel1er has not had the Pl"Opelty surveyed and that any fences, hedges, walls and other natural
or constructed barriers mayor may not represent the true bOUlll.hlfY lines of the Property. Buyer is also advised that any numerical representations of square
footage of the structure(s) and/or lot size are approximations only and may be inaccurate. Buyer is advised to engage a professional surveyor or obtain an
independent measurement of the structure(s) and/or lot size if Buyer wishes to make this sale contingent on Buyer's approval of the Property's boundaries
or square footage.
Water Service: Buyer may elect to have the water service inspected by a professional water testing company. In addition, on-site water service systems
may have to meet certain quality and/or quantity requirements sel by the municipality or the mortgage lender.
Wood.Destroying Insect Infestation: Insects whose primary source of food is wood, such as termites, wood-boring beetles, carpenter ants, carpenter bees,
and certain other insects, can cause damage to the wood structure of a residence. Termite and Pest Control companies are avail'
determine whether wood-destroying insects are present. Because of the way these insects function, damage to wood may be hi
be made of skilled experts in the termite/pest control field to insure a proper determination of whether wood-boring in cts
Exterior Insulation and Finish Systems (EIFS): Exterior Insulation and Finish Systems - sometimes refi
ered wall systems that are applied to the exterior of some homes. Poor or improper installation of EIFS
structure where it may cause damage to the building's frame. Leakage most frequently occurs near doors
the lowermost edge of the exterior surface. Vulnerability to leakage depends on structure des' as
tractor. Damage caused by water intrusion may be both extensive and expensive to repair dete
Buyers purchasing homes with EIFS construction may seek to engage an inspector expe . in testing for E
moisture content of the building's frame.
multi-Iay-
urface of a
ction, and at
p I skills of the con-
f an adequate inspection.
ems who can determine the
Applicability: In general, the Home Inspection Law a
exchange, installment sales contract, lease wi
NOT MORE THAN FOUR RESIDENT
(exceptions 1-8) for a list of exceptions to
sfers. A residential real estate transfer is defined as a sale,
er transfe an interest in real property where NOT LESS THAN ONE AND
volved. See Information Regarding The Real Estate Seller Disclosure Law
Home Inspection:
tial components of a
or preparation for a \
be a home inspection
residential dwelling su
tion for, or of, one or m
terns, air and water qualit
the services to be performe
inspector and the client.
combination of the mechanical, electrical or plumbing systems or the structural and essen-
ateriaJ defects in those systems and components, and performed for a fee in connection with
si te transfer. The term also includes any consultation regarding the property that is represented to
any confusingly similar term. The term does not include an examination of a single system or component of a
ectrical or plumbing system or its roof. The term also does not include an examination that is limited to inspec~
fol g: wood destroying insects, underground tanks and wells, septic systems, swimming pools and spas, alarm sys-
courts and playground equipment, pollutants, toxic chemicals and environmental hazards. The scope of a home inspection,
the systems and conditions to be inspected or excluded from inspection may be defined by a contract between the home
Home inspection report: A written report on the results of a home inspection.
A home inspection report shall include:
(l) A description of the scope of the inspection, including without limitation an identification of the structural elements, systems and subsystems covered by
the report.
(2) A description of any material defects noted during the inspection, along with any recommendation that certain experts be retained to determine the extent
of the defects and any corrective action that should be taken. A "material defect" that poses an unreasonable risk to people on the property shall be con-
spicuously identified as such.
A home inspector shall not express either orally or in writing an estimate of the cost to repair any defect found during a home inspection, except that such
an estimate may be included in a home inspection report if:
(1) the report identifies the source of the estimate;
(2) the estimate is stated as a range of costs; and
(3) the report states that the parties should consider obtaining an estimate from a contractor who performs thc type of repair involved.
Seller shall have the right, upon request, to receive without charge a copy of any inspection report from the party for whom it was prepared.
Home inspector: An individual who performs a home inspection.
National home inspectors association: Any national association of home inspectors that:
(1) Is operated on a not-for-profit basis and is not operated as a franchise.
(2) Has members in more than ten states.
(3) Requires that a person may not become a full member unless the person has performed or participated in more than 100 home inspections and has passed
., r"'~~~~:~~.::l ~~ ,,~~~~.1:<-~rl ~.._.n:__':__ ._~,:.._ 1'_n...I...l.... ._(:.1-.._ _...
235
136
237
238
239
240
241
242
243
244
245
Wi
247
2"
249
250
251
25:0:
25::i
254 11.
255
256
2S7
258
259
260
261
262
203
264
265
266
267
268
269
270
271
272
273
274
2i5
276
'l17
276
279
LBO
281
282
283
284
285
286
28)
2"
289
290
291
292
293
294
295
296
291
~98
299
300
301
302
303
304
2. Within the time set forth above for obtaining the risk assessment and/or inspection of the Property for Icad~based paint and/or 235
lead-based paint hazards, Buyer may deliver to Seller a written list of the specific hazardous conditions cited in the report and those 23ti
corrections requested by Buyer, along with a copy of the risk assessment andlolr inspection report. 237
3. Sellcr may, within ~ DAYS of receiving the list and rcport(s), submit a written corrective proposal to Buyer. The corrective proposal 238
will include, but not be limited to, the name of the remediation company and a projected completion date for corrective measures. Seller ;"!:J9
will provide certification from a risk assessor or inspector that corrective measures have been satisfactorily completed on or before the 240
projected completion date. ~41
4. Upon receiving the corrective proposal, Buyer, within ~ DAYS, will: 242
a. Accept the cOlTective proposal and the Propel1y in writing, and agree to the RELEASE set forth in paragraph 25 of this Agreement, OR 2'lJ
b. Terminate this Agreement in writing, in which case all deposit monies paid on account of purchase price will be returned promptly 244
to Buyer and this Agreement will be VOID. 245
5. Should Seller fail to submit a written corrective proposal within the time set forth in paragraph 10(0)3 of this Agreement, Buyer, ;;'-16
within ~ DAYS, will: 241
a. Accept the Property in writing, and agree to the RELEASE set forth in paragraph 25 of this Agreement, OR 24li
b. Terminate this Agreement in writing, in which case all deposit monies paid on account of purchase price will be returned promptly 249
to Buyer and this Agreement will be VOID. 250
6. Buyer's failure to exercise any of Buyer's options within the time limits specified in this paragraph will constitute a WAIVER of :51
this contingency and Buyer accepts the Property and agrees to the RELEASE set forth in paragraph 25 of this Agreement. :252
(E) Certification: By signing this Agreement, Buyer and Seller certify the accuracy of their respective statements, to the besl of their knowledge. 253
STATUS OF RADON (1-02) ",'
(A) Seller represents that Seller has no knowledge concerning the presence or absence of radon unless checked below. 255
o 1. Seller has knowledge that the Property was tested on the dates, by the methods (e.g., charcoal canister, alpha track, etc.), and with 256
the results of all tests indicated below: 2;,7
DATE TYPE OF TEST RESULTS (picocuri.es/liter or working levels) 21,6
259
~6!J
COPlES OF ALL AVAILABLE TEST REPORTS will be delivered 10 Buyer with this Agreement. SELLER DOES NOT WAR- 261
RANT EITHER THE METHODS OR RESULTS OF THE TESTS. 16"
o 2. Seller has knowledge that the Property underwent radon reduction measures on the date(s) and by the method(s) indicated below: 263
DATE RADON REDUCTION METHOD '"
'2ii5
2Gb
(B)
o
RADON INSPECTION CONTINGENCY
WAIVED. Buyer understands that Buyer has the option to request that the Property be inspected for radon by a certified inspector (see Environ-
mental Notices: Radon). BUYER WAIVES THIS OPTION and agrees to the RELEASE set forth in paragraph 25 of this Agreement.
ELECTED. Buyer, at Buyer's expeo.se, ,~~s the option to obtain, from a certified inspector, a radon test of the Property, and will deliver a copy
of the test report to Seller within ~ DAYS (15 days if not specified) of the (~xecution of this Agreement. (See Environmental Notices:
Radon)
1. If the test report reveals the presence of radon below 0.02 working levels (4 picocurieslliter), Buyer accepts the Property and agrees to the
RELEASE set forth in paragraph 25 of this Agreement.
2. If the tcst report reveals the presence of radon at or exceeding 0.02 working levels (4 picocuries/liter), Buyer will, within ~ DAYS
of receipt of the test results:
Option 1
a. Accept the Property in writing and agree to the RELEASE set forth in paragraph 25 of this Agreement, OR
b. Terminate this Agreement in writing, in which case all deposit monies paid on m;count of purchase price will be returned promptly to Buyer
and this Agreement will be VOID, OR
c. Submit a written, corrective proposal to Seller. The corrective proposal will include, but not be limited to, the name of the certified miti-
gation company; provisions for payment, including retests; and a projected completion date for corrective measures.
(I) Within ~ DAYS ofreceiving the corrective proposal, Seller will:
(a) Agree to the terms of the corrective proposal in writing, in which case Buyer accepts the Property and agrees to the
RELEASE set forth in paragraph 25 of this Agreement, OR
(b) Not agree to the terms of the corrective proposal.
(2) Should Seller not agree to the terms of the corrective proposal or if Seller fails to respond within the time given, Buyer will, within
~ DAYS, elect to:
(a) Accept the Property in writing and agree to the RELEASE set forth in paragraph 25 of this Agreement, OR
(b) Tenninate this Agreement in writing, in which case all deposit monies paid on account of purchase price will be returned
promptly to Buyer and this Agreement will be VOID.
277
278
219
280
28'1
282
2.83
"4
265
286
287
266
289
290
<':91
292
293
294
2u'i
:.iitl
2b9
l;'I::
21fl
211
272
213
274
2/:-'
Lib
~.
o
Option 2
a. Accept the Property in writing and agree to the RELEASE set forth in paragraph 25 of this Agreement, OR
b. Submit a wrincn, corrective proposal [0 Seller. The corrective proposal will indude, but not be limited to, the name of the certified miti-
gation company; provisions for payment, including retests; and a projected completion date for corrective measures. Seller will pay a max-
imum of $ toward the tolal cost of remediation and retests, which will be completed by settlement.
(1) If the total cost of remediation and retests EXCEEDS the amount specified in paragraph II(B) (Option 2) b, Seller will, within
~ DAYS of receipt of the cost of remediation, notify Buyer in writing of Seller's choice to:
(a) Pay for the total cost of remediation and retests, in which case Buyer accepts the Property and agrees to the RELEASE set forth
in paragraph 25 of this Agreement, OR
(h) Contribute toward the total cost of remediation and retests only the amount specified in paragraph II(B) (Option 2) b.
(2) If Seller chooses not to pay for the total cost of remediation and retests, or if Seller fails to choose either option within the time
given, Buyer will, within~ DAYS, notify Seller in writing of Buyer's choice to:
(a) Pay the difference between Seller's contribution to remediation and retests and the actual cost thereof, in which case
295
296
'L.97
298
299
:jOO
JOI
)()2
303
:JlI4
J',;oi \. H{fjr\("'~!<}'.JJAL ;\'() ,! ~C;I<S
Asbestos: The heat-resistant and durable nature or asbestos makes il useful ill cOllstructiol1 ~llld industry. The physical properties that give asbestos its resis-
tance to heat and decay are linked with several adverse hun1an health elree;. A:;bestos can easily break into microscopic fibers that can remain suspended in
the air for long periods of time. When inhaled, these fibers easily penetral{' body t:SSlIC. Asbestos is known to cause Asbestosis and various forms of cancer.
Inquiries or requests for more information about asbestos can he directed to the U.S. Environmental Protecti('>n Agency, Ariel Rios Building. 1200
Pennsylvania Ave.. N.W., Washington, D.C. 20460, and/or the Department oj Health, Commonwealth of Pennsylvania, Division of Environmental Health,
Harrisburg, PA 17120.
Electromagnetic Fields: Electromagnetic Fields (EMFs) occur around all electrical appliances and power lines. Conclusive evidence that EMFs pose
health risks does not exist at present, and Pennsylvania has no law,; reganJilg thi,; issue.
Environmental Hazards: The U.S. Environmental Protection Agency IHIS a lisl of hazardous substances, the use and disposal of which are restricted by
law. Gene.rally, if hazardous substances are found on a property, it is the propeJ1y owner's responsibility to dispose of them roperly. For more information
and a list of hazardous substances, contact U.S. Environmental Protection Agency, Ariel Rios Building, 1200 Pen e., N.W., Washington, D.C.
20460, (202) 260-2090.
tlands by an environ-
'etlands.
Wetlands: Wetlahds are protected by both the federal and state governments. Buyer may wish to h
mental engineer to determine if pennits for plans to build, improve, or develop the property wo
Lead:
(For Properties built before 1978)
I~ead Warning Statement: Every purchaser of any interest in res'
notified that such property may present exposure to lead fro lead-
Lead poisoning in young children may produce penn
behavioral problems, and impaired memory. Lea . so
tial real property is required to provide the
seller's possession and notify the bu
hazards is recommended prior to pu
tial dwelling was built prior to 1978 is
i1dren at risk of developing lead poisoning.
din arning disabilities, reduced intelligence quotient,
to pregnant wumen. The seller or any interest in residen-
paint hazards from risk assessments or inspections ill the
.. A risk assessment or inspection for possible lead-based paint
allce with the Residential Lead-Based Paint Hazard Reduction Act, allY seller of property
proved lead hazards information pamphlet titled Protect Your Family From Lead ill Your
the Brok the known presence of lead-based paint and/or lead-based paint hazards in or on the prop-
r detennining that lead-based paint iln(VOr lead-based paint hazards exist, the location of lead-based paint
condition of painted surfaces. Any seller of a pre-1978 structure must also provide the buyer with any
pertaining to lead-based paint and/or lead-based paint hazards in or about the property being sold. the com-
en eItings in multi-family housing. The Act further requires that berore a buyer is obligated to purchase any hous-
1978, the seller will give the huyer 10 days (unless buyer and seller agree in writing to another time period) to conduct a
ction for the presence of lead-based paint and/or lead-based paint hazards. The opportunity to conduct a risk assessment or
.nay be waived by the buyer, ill writing. Neither testing nor ahatement is required of the seller. Housing built in 1978 or later is not
'eAcl.
Radon: Radon is a natural, radioactive gas that is produced in the ground by the nonnnl decay or uranium and radium. Studies indicate that extended expo-
sure to high levels or radon gas can increase the risk of lung cancer. Radon can rind its way into any air-space, including basements and crawl spaces and
call permeate a structure. The U.S. Environmental Protection Agency (EPA) advises corrective action if the annual average expo~ure to radon exceeds 0.02
working levels or 4 picocuries/liter. If a hom,e has a radon problem, it usually can be cured by increased ventilation and/or by preventing radon entry. Any
person who tests, mitigates, or safeguards a building for radon in Pennsylvania must be certified by the Department of Environmental Protection. Information
about radon and about certified testing or mitigation firms is available through Department of Environmental Protection, Bureau of Radiation Protection. 13th
Floor, Rachel Carson Stale Office Building, PO. Box 8469, Harrisburg, PA 17105-8469, (800) 23RADON or (717) 783-3594.
MoldIFungi and Indoor Air Quality: Indoor mold contamination and the inhnlation of bioaerosols (bacteria, mold spores, pollen, and viruses) have been
associated with allergic responses including upper respiratory congestion, cough. mucous membrane irritation, fever, chills, muscle ache or other transient
inllammation or allergy. Claims have been asserted that exposure to mold contamination and bioaerosols has led to serious infection, immunosuppression
and illnesses of neuro or systemic toxicity. Sampling of indoor air quality and other methods exist to determine the presence and scope of any indoor con-
tamination. Because individuals may be affected differently, or not affected at all, by mold contamination, the surest approach to determine the presence of
contamination is to engage the services of a qualified professional to undertake an assessment artd/or sampling. Assessments and samplings for the presence
of mold contamination can be performed by qualified industrial hygienists, engineers, laboratories and home inspection companies that offer these services.
Information pertaining to indoor air quality is available through the United States Environmental Protection Agency and may be obtained by contacting IAQ
INFO, PO. Box 37133, Washingloo, D.C. 20013-7133,1-800-438-43]8.
323 2. ScHer agrees to locate ami provide access to the on-site (or individual) watcr syskm, if applicable, at Seller's expense, if required hy the 3;.03
3;:4 inspectitln L:tlll1pany. Seller also agrees to restore the Property, at Scllcr's expense, prior to settlement. 1'4
3:':::' J. If the report reveals that the water service docs not meet the minimum standards of any applicable governmental authority and/or fails to :L'i
3:!ti satisfy the requirements for quality '-\I1(Vor quantity set by the lllortg<.lge lender, if any. then Seller will, within~ DAYS of receipt of .m;
327 the report, notify Buyer in writing of Seller's choice to: :m
32(1 :1. Upgrade the water service to the minimum acceptable levels, before seul,emcnt, in which case Buyer accepts the Property and agrees J2il
3~'~ to the RELEASE set forth in paragraph 25 of this Agreement, OR J2S
:1::lI b. Not upgmde the water service. 330
:;:il 4. If Seller chooses not to upgrade the service to minimum acceptable levels. or fails to respond within the time given, Buyer will, within :131
3:,;: ~ DAYS, either: 332
:;J:J a. Accept the Property and the watcr service and, if required by the mortgage lender, if any, and/or any governmental authority, upgrade 333
:1"',4 the water service before settlement or within the time required by the mortgage lender, if any, and/or any governmental authority, at 334
3:;;; Buyer's expense and with Seller's permission, which will not be unreasonably withheld, and agree to the RELEASE set forth in para- JJS
;j>iJ graph 25 of this Agreement. If Seller denies Buyer pennission to upgrade the water service, Buyer may, within~ DAYS of :lJb
::'jl Seller's denial, terminate this Agreement in writing, in which case all deposit monies paid on account of purchase price will be 337
:',i8 returned promptly to Buyer anll this Agreement will be VOID, OR 3j8
h. Terminate this Agreement in writing, in which case all deposit monies paid on account of purchase price will he returned promptly :m
to Buyer and this Agreement will be VOID. ,\40
,,'1I 13. STATUS OF SEWER (1-02) 341
J"~ (A) Seller represents that the Property is served by: \:1'-
H:l ,~t Public Sewer .143
~>;'I 0 Individual On-lot Sewage Disposal System (See Sewage Notice I) ;ih
'W; 0 Individual On-lot Sewage Disposal System in Proximity to Well (See Sewage Notice I; see Sewage Notice 4, if applicable) J4$
:146 0 Community Sewage Disposal System 346
J4( 0 Ten-acre Permit Exemption (See Sewage Notice 2) ]"j{
)'18 D Holding Tank (See Sewage Notice 3) 34a
;j4<J 0 None (See Sewage Notice 1) 'WI
J:jG 0 None Available/Permit Limitations in Effect (See Sewage Notice 5) :][>;1
~51 0 JS1
352 (B) INDIVIDUAL ON-I~OT SEWAGE DISPOSAL INSPECTION CONTINGENCY "52
~:)53 0 WAIVED. Buyer acknowledges that Buyer has the option to request an individual on-lot sewage disposal inspection of the Property. BUYER 353
,"J54 WAIYES THIS OPTION and agrees to the RELEASE set forth in paragraph 25 of this Agreement. 3:'"
355 0 ELECTED J;:,)
'J~)€ I. Buyer has the option, within ~ DAYS (15 days if not specified) of the execution of this Agreement and at Buyer's expense, to 356
2d deliver to Seller a written inspection report by a qualified, professional inspector of the individual on-lot sewage disposal system. 35/
3:li! 2. Seller, at Seller's expense, agrees, if and as required by the inspection company, to locale, provide access to and empty the individual on- 351)
j~;4 lot sewage disposal system. Seller also agrees to restore the Property, at Selle;r's expense, prior to settlement. J;/l
;'J;:,( 3. If the report reveals defects that do not require expansion or replacement of the existing sewage disposal systcm, Seller will, within 3(iJ
3[,1 ~ DAYS of receipt of the report, notify Buyer in writing of Seller's choice to: 3iil
:)1;2 a. Correct the defects before settlement, including retests, at Seller's expense, in which case Buyer accepts the Property and agrees to :](,2
Ji.d tbe RELEASE set f0l1h in paragraph 25 of tbis Agreement, OR 363
36'1 b. Not coned the defects. ;j(i,'\
:J65 4. If Seller chooses not to conect the defects, or if Seller fails to respond within the time given, Buyer will, within -L DAYS, either: 3il0
3Gb a. Accept the Property and the system and, if required by the mortgage lender, if any, and/or any governmental authority, correct the 366
3b} defects before settlement or within the time required by the mortgage lender, if any, and/or any governmental authority, at Buyer's Jet
35ll sole expense and with Seller's pemlission, which will not be unreasonahly withheld, and agree to the RELEASE set forth in para- 3f.f1
.w! graph 25 of this Agreement If Seller denies Buyer permission 10 correct the defects, Buyer may, within ~ DAYS of Seller's 369
31'tJ denial, terminate this Agreement in writing, in which case all deposit monics paid on account uf purchasc price will he returned 370
Jii promptly to Buyer and tbis Agreement will be YOID, OR :J71
:il? b. Terminate this Agreement in writing, in which case all deposit monies paid on account of purchase price will be returned 31'2
T!3 promplly to Buyer and this Agreement will be YOID. .m
:;/4 5. If tbe report reveals the need to expand or replace the existing individual on-lot sewage disposal system, Seller may, within ~_ DAYS 3/'4
31'S of receipt or the report, submit a corrective proposal to Buyer. The corrective proposal will include, but not be limited to, the name of the :375
si'& remediation company; provisions for payment, including retests; and a projected completion dale for corrective measures. Within 376
J(( ~ DAYS of receiving Seller's corrective proposal, or it' no corrective pmposal is received within the time given, Buyer will: :;"17
31<1 a. Agree to the terms of the corrective proposal, if any, in writing, in vihich case Buyer accepts the Propel1y and agrees to the RELEASE TIP
Ji'G sel forth in paragraph 25 of this Agreement, OR 3N
3B0 b. Accept the Property and the system and, if required by the mortgage Icnder, if any, and/or any governmental authority, correct the :i!lO
361 defects before settlement or within the time required by the mortgage lender, if any, and/or any governmental authority, at Buyer's :j!:lJ
:l!i2 sole expense and with Seller's pennission, which will not be unreasonably withheld, and agree to the RELEASE set forth in para- 382
31;3 graph 25 of this Agreement. If Seller denies Buyer permission to correct the defects, Buyer may, within ~ DAYS of Seller's J8J
Jti4 denial, tenninate this Agreement in writing, in which case all deposit monies paid on account of purchase price will be returned 384
:l85 promptly to Buyer and this Agreement will be YOlO, OR 385
3ti6 c. Terminate this Agreement in writing, in which case all deposit monies paid on account of purchase price will be returned promptly 366
3d} to Buyer and this Agreement will be YOlO. 387
'" 14. NOTICES, ASSESSMENTS & CERTIFICATES OF OCCUPANCY (1-02) '"
3t19 (A) Seller represents, as of Seller's execution of this Agreement, that no public improvement, condominium or homeowner association assessments 389
390 have been made against the Property which remain unpaid, and that no notice by any government or public authority has been served upon 390
391 Seller or anyone on Seller's behalf, including notices relating to violations of zoning, bousing, building, safety or fire ordinances which remain 391
392 uncorrected, and that Seller knows of no condition that would constitute violation of any such ordinances which remains uncorrected, unless 392
11j3 otherwise snecit1ed here'
~-t,fl.l \ \, \ \."~_\~J' ~ ',-,,".:......"
NOTICES PURSUANT TO TilE PENNSYLVANIA SEWAGE FACILITIES ACT
NOTICE 1: TIIERE IS NO CURRENTLY EXISTIN(; COMMIINJTV SEWAGE SYSTEM AVAILABLE FOR THE SUBJECT PROPERTY.
Section 7 of the Pennsylvania Sewage Facilities ^ct provides thaI no person shall instalL construct. request hid proposals for construction.
alter. repair Of occupy any building or structure for l,Iihich an individual sewage system is to be installed, without first obtaining a pennie
Buyer is advised by this notice thaL before signing [hi" Agreemem. Buyer should contact the local agency charged with administering the
Act to determine the procedure and requirements for ohtuining <) permit for an individual sewage system. The local agency churged with
administering the Act will be the municipality where the Property is located or that municipality working coope~~~iiil~~others.
i!~~Y+"~ .........
NOTICE 2: THIS PROPERTY IS SERVICED BY AN INDlVII>UAL SEWAGE SYSTEM INS R .:~~F~E PERMIT
EXEMPTION PROVISIONS OF SECTION 7 OF THE PENNSYLV1\ WAG .~ AC'fI'II$li:lliirl"l:l~ides that a
permit may not be required before installing. constructing. awarding a' . tru ll'pairin.g.l.'....r co.nn.e. ,~..~..~.to an indi-
vidual sewage system where a ten-acre parcel or lollS subdi~~ from nt rafter J . 987). B~flldy~1hat soils and
site test1l1g were not conducted and that, should ~ ~ysterr1 ~~tl1lctr e owner of the or,pJj~tie~.~rlnf<<krby the system at
the time of a malfunctIon may be heltt_f<<?j MY c{,ntaqlili:W:ion, polhj~n, publ "th ~ which occurs as a result.
'.'/:" ,~,:" ,;f",:" "J);~~;~", '}:_'7'-t-;,j! ><,,-'
NOTICE 3: THIS PIWPER1:l""'S~l~P BY A ~LDING TA~~ (I!!,RM~.. EMPORARYl TO WIIICH SEWAGE IS CON-
r1VEYFl!f~YA ~~~~ CAR~~(; SYST~!,<<~",~) WIIIC>>~ DESI(i~Eb AND CONSTRUCTED TO FACILITATE I!LTlMATE
';-}'t,h~l,SP~_pF ~JSEWAG~:-~~;~N()THli~';SJ I E. Pursuant to the Pennsylvania Sewage FaCIlities Act, Seller must provide <l hIstory
,~ost:())t:tpiijntainiI1l;~tank fronnbedulc of its installation or December 14. 1995, whichever IS later.
- ::;}:{:'-- -,t-".:r::' :;i:!':'~ fEY~~-:;:
NOTICE 4!1 'i} ALSltWl\meSYSTEM liAS BEEN INSTALLED AT AN ISOLATION I>ISTANCE FROM A WELL TIIAT IS LESS
{U>>:::~A _.___ TANCE SPECIFJED BY REGIJLATJON. The regulations at 25 Pa. Code *73.13 pertaining to minimum horizontal iso-
,:',:tation dist~tlces provide guidance. Subsection (b) of *73.13 stah~s that the minimum horizontal isolation distance between an individual water
supply or water supply system suction line ami treatment tanks "Iwll he:')O feel. Subsection (c) of ~73. U states that the horizontal isolation
distance between the individual water supply or water supply system suction line and the perimeter of the absorption area shall he 100 feet.
NOTICE 5: TlIIS LOT IS WITHIN AN AREA IN WIIICII PERMIT LIMITATIONS ARE IN EFFECT AND IS SUBJECT TO THOSE LIMI-
TATIONS. SEWAGE FACILITIES ARE NOT AVAILABLE FOR THIS LOT AND CONSTRUCTION OF A STRUCTURE TO B~;
SERVED BY SEWAGE FACILITIES MAY NOT BEGIN UNTIL THE MUNICIPALITY COMPLETES A MAJOR PLANNING
REQUIREMENT PURSUANT TO THE PENNSYLVANIA SEWAGE FACILITIES ACT AND REGULATIONS PROMULGATED
THEREUNDER.
4ii (E) If rClJuired by law, within -1L DAYS of the ex.ecution of Ihis Agreement Sellt:r will order for delivery lo Buyer, on or bdon: sealement: 4J!
~12 I. A certification fi'otll the appropriate municipal department or departments disclosing nOliee uf any uncorrected violations of zuning, hous- jjJ.
.,LJ ing, building, safety or fire ordinances, AND/OR i-d
414 2. A certificate permitting occupancy of the Property. In the event repairs/improv~lllents arc required for the issuance of the certitkate, Seller j,t
41t, will, within ~ DAYS of Seller's receipt of the requirements, notify Buyer of the requircments and whether Seller will make the 11';
,i~b required repairs/improvements at Seller's expense. I,;
4'/ If Seller chooses 10 make the required repairs/improvements, Buyer agrees to accept the Property as repaired and agrees to the RELEASE set
.~j& forth in paragraph 25 of lhis Agreement. If Seller chooses not to make the requircd repairs/improvemems, Buyer will, within ~ DAYS, il3
4i!i nOlify Seller in writing of Buyer's choice to terminate this Agreement OR make the repuirs/improvements at Buyer's expense and with Seller's ;Iii!
';;~L permission, which will not he unreasonably withheld. If Seller denies Buyer permission to make the required r~pairs or if Seller fails to respond ;;;>0
4i.i within the time given, Buyer may, within -L DAYS, terminate this Agreement in writing, in which case ull deposit monies paid on account -!21
1'" of purchase price will he retumed promptly to Buyer and this Agreement will be YOlD. 112
<12J ]5. TITLE, SURVEYS & COSTS (1-02) 1'3
4;:/1 (A) The Propelty is to be conveyed free and clear of all liens, encumbrances, and eas,~ments, EXCEPTING HOWEYER the following: existing 121
42S deed restrictions, historic preservation restrictions or ordinunces, building restrictions, ordinances, easements of roads, easements visihle upon i;'S
~:!ti the ground, easements of record, privileges or rights of public service companies, if any; otherwise the title to the above described real estate I~:S
F will he good and marketable and such as wil( be insured by a reputable Title Insurance Company at the regular rates. Lei
.,2lJ (B) Buyer will pay for the following: (I) Title sean:h, title insurance and/or mechanics lien insurance, or fee for cancellation of same, if any; l~e
429 (2) Flood insurance, fire insurance with extended l:overage, mine subsidence insurance, or fee for cancellation of same, if any; (3) Appraisal ,f2.~
i:JiJ fees and charges paid in advance to mortgage lender, ifany; (4) Buyer's customal)' settlement costs and uccruals. p,j
'i:;! (C) Any surveyor surveys which may be required by the Title Insurance Company or the abstracting attorney for the preparation of an adequate 13 i
'!32 legal description of the Property (or the correction thereof)wil1 be secured and paid for by Seller. Any surveyor surveys desired by Buyer or in
4:1:( required by the mortgage lender will be secured and paid for by Buyer. ,I})
434 (D) In the event Seller is unable to give a good and marketable titre and such as will be insured by a reputable Title Company at the regular rates, as d;
,LiS specified in paragraph 15(A), Buyer will have the option of: (I) taking such title as Seller can give with no change to the purchase price; or (2) be;ng L;"
43b repaid all monies paid hy Buyer to Seller on account of purchase price and being reimbursed by Seller for any costs incurred by Buyer for any inspec- r;:;
437 tions or t:ertificat;ons obtained according to the terms of the Agreement, and for those items specifieJ in paragraph 15(B) items (I), (2), (3) and in 1:1f
4JB paragraph 15(C), in which case there will be no further liability or ohligation on either of the parties hereto and this Agreement will become YOID.
43' 16. ZONING CLASS]FICATlON (1-02) ""
4;10 Failure of this Agreement to contain the zoning classification (except in cases where the property I <lnd each parcel thereof, if subdividable J is zoned 1~"
,1.11 solely or primarily to permit single-family dwellings) will render this Agreement voidable at the option of the Buyer, and, if voided, any depusits 141
442 tendered by the Buyer will be returned to the Buyer withoul any requirement for court action.H':
4.13 Zoning Classification: , , 'l-1J
444 0 ELECTED. Within ----1L DAYS of the execution of this Agreement, Buyer will verify that the existing use of the Properly as .j,lt
4..\5 is permillcd. In the event the use is not permitted, Huyer will, within the time :,4~
446 given for verification, notify Seller in writing that the existing use of the Property is not permitted and this Agreement will be YOID, in which 4~b
4ol7 case all deposit monies paid on account of purchase price will he returned prolllptly to Buyer. Buyer's failure to respond within the time 'In
44& given will constitute a WAIVER of this contingency and all other terms of this Agreement remain in full force and effect. A-iU
4>, ]7. COAL NOTICE '1"
45' D _ NOT APPLICABLE .150
451 0 APPLICABLE,,,
452 THIS DOC'lJMENT MAY NOT SELL, CONVEY, TRANSFER, INCLUDE OR INSURE filE TITLE TO THE COAL AND RIGHTS OF SUPPORT UNDERNEATH THE SURFACE LAND -l5:!
453 DESCRIBED OR RI',;FERRED TO HEREIN, AND THE OWNER OR OWNERS OF SUCH COAL MAY HAVE THE COMPLETE LEGAL RIGHT TO REMOVE ALL SUCH COAL AND 46;1
454 IN HfAT CONNECTION, DAMAGE MAY RESULT TO HIE SURFACE OF THE LAND AND ANY HOUSE. BUILDiNG OR OTHER STRUCTURE ON OR IN SUCH LAND. (This 'lS,l
455 notice is set forth in the manner provided in Sed ion 1 of the Act of July 17, 1957, p.L. 984.) "Buyer acknowledges that he may not be obtaining the 455
456 righl of protection against subsidence resulting from coal mining operations, and thutth~ property described herein may he protected from damage 'Lib
457 due to mine subsidence by a private contract with the owners of the economic interests in the coal, This acknowledgement is made for the purpose i5!
458 of complying with the provisions of Section 14 of the Bituminous Mine Subsidence and the Land Conservation Act of April 27, 1966." Buyer agrees 63
459 to sign the deed from Seller which deed will contain the aforesaid provision. 4S,l
460 18. POSSESSION (1-02) ""
~61 (A) Possession is to be delivered by deed, keys and: ~61
462 I. Physical possession to vacant Property free of debris, with all structures broom~c1ean, at day and time of settlement, AND/OR 462
~63 2. Assignment of existing lease(s), together with any security deposits and interest, at time of settlement, if Property is leased at the 463
464 execution of this Agreement or unless otherwise spccitled herein. Buyer will acknowledge existing lease(s) by initialing said lease(s) at 464
405 time of execution of this Agreement. 4b5
466 (8) Seller will not enter into any new leases, written extension of existing leases, if any, or additional leases for the Property without the written .Jii6
467 consent of Buyer. 467
468 19. RECORDING (3-85) This Agreement willnol be recorded in the Oftlce for the Recording of Deeds or in any other office or place of public record ,166
469 and if Buyer causes or permits this Agreement to be recorded, Seller may elect to treat such act as a breach of this Agreement. 460
470 20. ASSIGNMENT (3-85) This Agreement will be binding upon the parties, their respective heirs, personal representatives, guardiuns and successors, 470
471 and to the extent assignable, on the assigns of the parties hereto, il being expressly understood, however, that Buyer will not transfer or assign this 471
472 Agreement without the written consent of Seller. 472
473 21. DEPOSIT & RECOVERY FUND (1-02) 4i3
474 (A) Deposits paid by Buyer within ~ DAYS of settlement will be by cash, cashier's or certified check. Deposits, regardless of the fonn of 474
475 payment and the person designated as payee, will be paid in U.S. Dollars to Broker or purty identified in paragraph 3(B), who will retain them 475
476 in an escrow account until consummation or termination of this Agreement in conformity with all upplicable laws and regulations. Any uncashed 476
471 check tendered as deposit monies may be held pending the acceptance of this offer, 4Tl
478 (B) Upon termination of this Agreement, the Broker holding the deposit monies will release the deposit monies in accordance with the terms of a 478
479 fully executed written agreement between Buyer and Seller. 4/9
480 (C) In the event of a dispute over entitlement to deposit monies, a broker holding the deposit monies is required by the Rules and Regulations of 480
.:11\1 th" ~tntp. Rpnl Rd.-.t.. r.....,.,.".......;",.:~~ {!In D.-. r'~,I", 111'" 1...."", >,_ __.
409_
THE FOLLOWING APPLIES TO PROPEIlTIES THAT AilE I'ART OF A CONDOMINIUM Oil A I'LANNED COMMUNITY.
(A) Within ~ DAYS of the execution of this Agreement, Seller will submit a request to the association fur il Certificate of Resale and the doc-
uments necessary to enable Seller to comply with the Act. The Act provides that the association is required to pro\'iJe these dUCllments within
10 days of Seller's request.
(B) Seller will promptly deliver to Buyer all documents received from the association. Under the Act, Seller is not liable to Buyer for the failure or
delay of the association to provide the Certificate in a timely manner, nor is Seller liable to Buyer for any cn"Ollcous information provided by
the association and included in the Certificme.
(C) Buyer may declare this Agreement VOID at any time before Buyer's receipt or the association documents and for 5 days thereafter, OR until
senlement, whichever occurs first. Buyer's notice declaring this Agreement yoiJ must be in writing; thereafter all deposit monies will be
returned to Buyer.
(D) In the event the association has the right to buy the Property (right of first refusal), and the association exercises that right, Seller will reimburse
Buyer for alimonies paid by Buyer on account of purchase price and for any costs incurred by Buyer for: (1) Title search, title insurance and/or
mechanics lien insurance, or fee for cancellation of same, if any; (2) Flood insurance and/or fire insurance with extcnded coverage, mine sub-
sidence insurance, or fee for cancellation of same, if any; (3) Appraisal fees and charges paid in advance to mortgage lender, if any.
23. MAINTENANCE & RISK OF LOSS (1-02)
(A) Seller will maintain the Property, grounds, rixtlir~s, and any personal property specifically scheduled herein in its present condition, normal
wear and tear excepted. ':'
(B) In the event any system or appliance included in thc.'salc of the Property fails and Se:ller does not repair or replace the item, Seller will promptly
notify Buyer in writing of Seller's choice to:
I. Repair or replace the failed system or appliance before settlement or credit Buyer at seulement for the fair market value of the failed sys-
tem or appliance (this option must be acceptahle td,Jhe mortgage lender, if any). In each case, Buyer accepts the Property and agrees to
the RELEASE set forth in paragraph 25 of this Agr~~llent, OR
2. Not repair or replace the failed system or appliance, ~.? not credit Buyer at settlement for the fair market value of lhe failed system or
appliance. If Seller does not repair, replace or offer \ credit for the failed system or appliance, or if Seller fails to notify Buyer
of Seller's choice, Buyer will notify Seller in writing\vithin ~ DAYS or before settlement, whichever is sooner, that Buyer
will: \
a. Accept the Property and agree to the RELEASE set to?tp in paragraph 25 of this Agreement, OR
b. Terminate this Agreement, in which case all deposit mo~jes paid on account of purchase price will be returned promptly to Buyer
and this Agreement will be VOID. -,\.
(C) Seller will bear risk of loss from tire or other casualties until lime ofsitJ.tlement. In the event of damage hy fire or other casualties to any prop-
erty included in this sale that is not repaired or replaced prior to settltment, Buyer will have the option of rescinding this Agreement and
promptly receiving all monies paid on account of purchase price or of acsepting the Property in its then condition together with the proceeds
of any insurance recovery obtainable by Seller. Buyer is hereby notified t~l Buyer may insure Buyer's equitable interest in this Property a<; of
the time of execution of this Agreement. \
24. WAIVER OF CONTINGENCIES (1-02) t\
If this Agreement is conlingent on Buyer's right to inspect and/or repair the Prope~, Huyer's failure to exercise any of Buyer's options within
the time limits set forth in this Agreement will constitute a WAIVER of that codtJngency and Buyer accepts the Pmperty and agrees to the
RELEASE set forth in paragraph 25 of this Agreement '].
25. RELEASE (1-02)
Buyer hereby releases, quit claims and forever discharges SELLER, ALL BROKEQs, their LICENSEES, EMPLOYEES, and any OFFIR
eER or PARTNER of anyone of them and any other PERSON, FIRM, or CORPOR.I\TION who mal' be liable by or through them, from
any and all claims, losses or demands, including, but not limited to, personal injuries aDl:l~mperty damage and all of the consequences thereR
of, whether now known or not, which may arise from the presence of termites or ,[)therlJoodNboring insects, radon, leadRbased paint haz~
ards, environmental hazards, any defects in the individual onRlot sewage disposal system:Qr deficiencies in the onRsite water service system,
or any defects or conditions on the llroperty. Should Seller be in default under the term~,of this Agreement, this release does not deprh'e
Buyer of any right to pursue any remedies that may be available under law or equity. This release will survive settlement.
26. REPRESENTATIONS (1-02),
(A) Buyer understands that any representations, claims, advel1ising, promotional activities, brochJ(~s or plans of any kind made by Seller, Brokers,
their licensees, employees, officers, or partners are not a part of this Agreement unless expressly incorporated or stated in this Agreement. It is
further understood that this Agreement contains the whole agreement between Seller and Buyer and there are no other terms, obligations,
covenants, representations, statements or conditions, oral or otherwise of any kind whatsoever concerning tbis sale. FUl1hermore, this
Agreement will not be altered, amended, changed, or moditied except in writing el(ecuted by the p,arties.
(B) It is understood that Buyer has inspected the Property before signing this Agreement (inch.i~ing fixtures and any personal property
specifically scheduled herein), or has waived the right to do so, and has agreed to purchase thelroperty in its present condition unless
otherwise stated in this Agreement. Buyer acknowledges that Brokers, their licensees, employ~es, otlicers or partners have not made
an independent examination or determination of the structural soundness of the Property, the age, or condition of the components, enviR
ronmenta) conditions, the permitted uses, or of conditions existing in the locale where the Property is situated; nor have they made a
mechanical inspection of any of the systems contained therein.
(Cl Any repairs required by this Agreement will he completed in a workmanlike manner.
(D) Broker(s) may perfonn services to assist unrepresented panies in complying with Ilhe terms of this Agreement.
(E) The headings, captions, and line numbers in this Agreement are meant only to make it easier to tinct the paragraphs.
27. DEFAUl:r (1-02)
(A) Seller has the option of retaining all sums paid by Buyer, including the deposit monies, should Buyer:
I. Fail 10 make any additional payments as specified in paragraph 3; OR
2. Furnish false or incomplete information to Seller, Broker(s), or the mortgage lender, if any, concerning Buyer's legal or financial status,
or fail to cooperate in the processing of the mortgage loan application, which acts would resull in the failure to obtain the approval of a
mortgage loan commitment; OR
3. Violate or fail 10 fultill and pert'orm any other terms or conditions of this Agreement.
(B) Unless otherwise checked in paragraph 27 (C), Seller may elect to retain those sums paid by Buyer, including deposit monies, in one of the
following manners:
5liB
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u>
'Jill
Sll1
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~HH
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311
512
5'13
51-1
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511
516
519
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5111
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520
521
;',,t.
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523
524
525
526
527
522
S~3
:;24
~i25
52G
52/
5;18
:i'(.lJ
529
5JO
5:11
532
533
534
535
536
537
538
539
540
541
S'd
Sell)
531
:.i32
5:)3
5:H
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53ti
:,3:'
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542
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543
544
545
546
547
548
549
550
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5'16
547
548
519
55['
5';1
551
552
55]
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,53
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555
:;srj
556
(,5()
55'7
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559
56l.i
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560
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562
563
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564
564
505
566
5i.)'!
568
5b5
566
56;
1." l', ~ '~, I "i! ,! I ~,' ;,' " J~' ! \ \', '.
< ," , ~ '.', I ; ~ I ,'," "
The Uniform Planned Community Act define~ "planned community" as real estate \vith respect to which a person, by virtue of ownership of an interest in
any portion of the real estate, is or may become obligated hy covenant, casement or agreement imposed on the owner's interest to pay any amount for real
property taxes, insurance. maintenance. repair, improvement, management. administration or regulation of any part of the real estate other than the portion
or interest owned solely by the person. The tenn excludes a cooperative and a condominium, but a cooperative or condominium may be part of a planned
community. For the purposes of this definition, "ownership" includes holdillg a leasehold interest of more than 20 years, including renewal options. in real
estate. The term includes non-residential campground communities.
Exemptions from the l1niform Planned Community Act - When a Certificate of Resale Is Not Required
The owner of a property located within a planned community is not required to furnish the huyer with a certificate of resale under the following: circum-
stances:
A. The Planned Community contains no more than 12 units, provided there is 110 possihility of adding real estate or subdividing units to increase the size
of the planned community.
B. The Planned Community is one in which all of the units are restricled exclusively to tHill-residential use, unless the declaration provides that the resale
provisions are nevertheless to be followed.
C. The Planned Community or units are located outside lhc COlllmoJ}l},"Calth of Pennsylvania.
D. The transfer of the unit is a gratuitous transfer.
E. The transfer of the unit is required by (OUrl order.
F. The transfer of the unit is by the government or a governmental agency.
G. The transfer of the unit is the result of foreclosure or in lieu of foreclosure.
Notices Regarding Public Offering Statements and Ri
If Seller is a Declarant of the condominium or planned community, Seller is requircd~ :4~Bu' ',~ t~py otthe Stdlclllcnt and Its
amendments. For condominiums, the delivery of the Public Offering Statement m jiiH latet" '. date~~er eXl:'cutes thIS Agreement Buyel
may cancel this Agreement within 15 days after receiving lhe Public Offering St~ and ;:;ny aln~nd ~ 't" :~Iihal:et i,.II) dtlJ advelsel} attel:l BIIYCI POI
planned ('(HnHlunities. tilL' Declarant Inust provide the Buyer with a cO~Y'Afthe P fering S,~~.ent ~~ttmendmellts no later than the date the Buyer
executes this Agreement. Buyer may cancel this Agreement with}n 1~~~er g the P~t'{)tferlhkSlatement and <.lny amendments that material-
I I d I fl. B . "/"'.',' ,'10'>:;/*',"""" ,".' ,y,,'f,\{C""'/
Y an( a verse y a' eet. uyer. '. ,J ;':, 'i!:f~;:: ..:>;'..>i':;',~j
:.,}~',; l! . " "'J':t:? I,',':" '. ';;Y},c;;A;;,,1K 'W
INFORMATIO~,~. ...,<" . ,'G THE ~,f;STATI<: St<iLER DISCLOSURE LA W
ly' ,':%,"' ....,;ih!-S" '1'11,':1r>8\
".;?, '(', ., i,:"", Z0:;t~,
Generally speaking, the Real Estate S~l ure Law' that befo1tftlh agreement of sale is signed, the seller in a residential real estate transfer
must make certain disclosures reg, to pote crs in a form detined by the law. A residential real estate transfer is defined as a sale,
exchange, installment sales ('ontrai't 'on to bu t or other transfer of an imerestin real property where NOT LESS THAN ONE AND
NOT MORE THAN F. RE TS are involved.
sclosures do not have to be made:
res order.
e lender that result from a buyer's default and subsequent foreclosure sales that result: from default.
er to one or more other co~owners.
ade" nuse or direct descendant
tween spouses that result from divorce. legal separation, or property settlement.
Trans y a corporation, partnership or other association to its shareholders, partners or other equity owners as part of a plan of liquidation.
Transfer of a property to be demolished or converted to non-residential use.
Transfer of unimproved real property.
Transfers by a fiduciary during the administration of a decedent estate, guardianship, conservatorship or trust.
Transfers of new construction that has never been occupied when:
a. The buyer has received a one-year warranty covering the construction;
b. The building has been inspected for compliance with the applicable building code or, if none, a nationaUy recognized model building
code; and
A certificate of occupancy or a certificate of code compliance has been issued for the dwelling.
c.
The Law de.t,jD,~,. .
I. .i
2.
3.
4.
5,
6.
7.
8.
9.
10.
In addition to these exceptions, disclosures for condominiums and cooperatives are limited to the seller's particular unit(s). Disclosures regarding common
areas Of facilities are not required, as those elements are already addressed in the laws that govern the resale of condominium and cooperative interests.
EXECUTION DATE
All changes to the Agreement should be initialed and dated. The date of execution is the date when Buyer and Seller have indicated full acceptance of this
Agreement by signing and/or initialing it.
5'1",_ 29. SI'ECIAL CLAUSES (1-02)
. ,1)'6 (A) The following are part of this Agreement if checked:
:,,;(j 0 Sale & Settlement of Other Property
''I) Contingency Addendum (PAR Form SSP)
)';1 0 Sale & Settlement of Other Property Contingency
592 with Right to Continue Marketing Addendum
is;! (pAR Form SSp-eM)
,"4 (B)
:lb!
~:Hi
o Settlement of OthC'f Property Contingency Addendum (PAR Fdrm SOP)
D Tenant-Occupied Property Addendum (PAR Form TOP)
o
o
o
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i~,
6:15
511';
5'.Iti
586
597
3~13
5;19 .
600
;:;91\
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';01
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ri\i2
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605
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Buyer and Seller acknowledge receiving a copy of this A
;:;\1:'
6\H
NOTICE TO PARTIES: WHEN SIGNED, THIS AGREE' , , NT}S A BINDING CONTRACT. Return by facsimile transmission (FAX) of tbis
Agreement, and all addenda, bearing the signatures of all pfttt. ' ct.!,stitutes acceptance of this AgreemenL Parties to this transaction are advised
to consult an attorney before signing if they desire legal adv~e'\
iltb
tHjb
,1.17
ih/'
60G
h:Jd
GD,)
Buyer has received the Consumer Notice as adopted by i~' te'!teal Estate Commission at 49 Pa. Code ~35.336.
Buyer has received a statement of Buyer's estimated closi~, \efore signing this Agreement.
Buyer has read and understands the notices and explanatory;,,{n, r~tion set forth in this Agreement.
Buyer has received a Seller's Property Disclosure Statement bet1' Slrning this Agreement, if required by law (see Information Regarding
the Real Estate Seller Disclosure Law). , "'
0' Buyer has received the Deposit Money Notice (for cooperative sa) ,,'~en Broker for Seller is holding deposit money) before signing this
Agreement.
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617 BUYER'S MAILING ADDRESS:
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Gl1
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6"
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679 BUYER'S CONTACT NUMBER(S):
620
6>, WITNESS
622
623
'" WITNESS
625
626
m WITNESS
62B
52!!
630
631
632
DATE
b19
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BUYER
SS#
622
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625
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SS#
BUYER
SS#
DATE
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't ..!t.i~~b~j ~r;..:A ;;.~.;) 'rt~.~~ V'.t",l>;i':':~'~ -).~~A(;'-I" ;;~\"l.l)l!-'-~~~')~::~~(1:f!; (;.;-:,~'~i'~~~\-~l~,'::: :1..~~~" ~J .~
",;,,<:;J/I.>~;, ~..'~~.tfl?~~" '~'1,: ;:\J:" '!f...,,).~~I, J ',('. ',- .~,' (.,..;,.t',~ ~.. 'i"':' _.~,/ c ':" ."J"'~;""'-';';
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634
634
635 O. Seller has received the Consumer Notice as adopted by the State Real Estate Commission at 49,
636 . 0'. Seller has ret:eived a statement of Seller's estimated closing costs before signing this Agreement.
637 D .' Seller has read and understands the notices and explanatory information set forth in this Agree '
...
635
63&
L
iW
636
639
\
\
\
\.
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SELLER'S MAILING ADDRESS:
t.:JD
6:10
6.10
641
642
643
644
645
SELLER'S CONTACT NUMBER(S):
641
64;;
ii4J
544
515
WITNESS
SELLER
SS#
DATE
646
647
64'
649
650
651
652
653
65'
655
WITNESS
SELLER
SS#
DATE
64&
!i4f
648
649
65[)
651
652
653
65-1
WITNESS
SELLER
SS#
DATE
Broker'sILicensees' Certifications (check all that are applicable):
[J Regarding Lead-Based Paint Hazards Disclosure: Required if Property was built before 1978: The undersigned Licensees involved in
this transaction, on behalf of themselves and their brokers, certify that their statements are true to the best of their knowledge and belief.
A('knowh'rlppmpnt! Thp r ;"pnll.PPlI. ;nvnl"p,-l in Ihill. tr"n"""tinn h""", infn.........r1 (;,,,,11.,,.. n+ (;'",11",..'~ ~J...I:~...:,,_~ .._--I__'T'l-..__ n____'--'__.,__, .
lV:ED J.A't.}~JN
DISPUTE RESOLUTION ~ YSl'EM RllLES AND PROCEDURES
1. Agreement of Parties The Rules and Procedures of the Displlt!: Rcs(llllti'jll System (DRS) apply when the parties have agreed in writing to mediate
under DRS. The written agreement can be achieved by a standard clallsc ill an agreemcnl of sale, an addendum to an agreement of sale, or through a
separate written agreement.
2. Jnitiation of Mediation If a dispute exists, any party may starl he mediation process by submitting a completed Request to Initiate Mediation DRS
Transmittal Form (Transmittal Form) to the local Association of RE^LTORS('~ (hereafter "Administrator"). The Transmittal Form should be available
through the Administrator's office. The initiating party should Iry In include the following information when sending the completed Transmittal Form
to the Administrator:
a. A copy of the written agreement to mediate if there is one. OR a request by the initiating party to have the Administrator contact the other par-
ties to the dispute to invite them to join the mediation process.
b. The names, addresses and telephone numbers of the parties involved in the dispute. including the name of every insurance company known
to have received notice of the dispute or claim and the corresponding file or claim number.
c. A brief statement of the facts of the dispute and the damages or relief sought.
3. Selection of Mediator Within five days of receiving the completed Transmittal Form, the Administrator will send each party to the dispute a copy of
the Transmittal Form and a list of qualified mediators and their fee schedules. Each party then has ten days to review the list of mediators, cross off the
name of any mediator to whom the party objects, and return the list to the Administrator. The Administrator will appoint the first available mediator who
is acceptable to all parties involved.
5. Time and Place of Mediation Conference Within ten days of being appoi
time and place of the mediation conference. The mediator must give at least
not be more than sixty days from the mediator's appointment to th isput
A mediator who has any financial or personal interest in the dispute or the results of the mediation cannot serv
parties are informed and give their written consent.
4. Mediation Fees Mediation fees will be divided equally among the parties and will be paid
the payment terms contained in the mediator's fee schedule.
parties will follow
\contact the parties and set the date.
s. The mediation conference should
6. Conduct of Mediation Conference The parties attend'
a. Have the authority to enter into and sign
b. Produce all information required for
rials, descriptions of witnesses an
mati on before the date
su "dispute. The information may include relevant written mate~
e mediator cun require the parties to deliver written materials and infor-
The mediator presiding over
a. Will impartj~lIy C(
o. Will hel'
c. Will hav
I:h
:x~r;'Y\
ernent ne'~(lation.
n dispute and reuch a mutually agreeable solution.
nion, to bind the parties to his or her decision, or to force the parties to reach a settlement.
j'....<..i ....,...... '.j
not 'apfily"to the mediation conference.
Forma
7.
ny party who intends to be accompanied to the mediation conference by legal counsel will notify the mediator and the
;ntent at least ten days before the conference.
8. Confidentiality No aspect of the mediation can be relied upon or introduced as evidence in any arbitration. judicial or other proceeding. This includes,
but is not limited to. any opinions or suggestions made by any party regarding a possible settlement: any admissions made during the course of the medi~
ation; any proposals or opinions expressed by the mediator; and any responses given by any party to opinions, suggestions, or proposals.
No privilege will he alleeted hy disclosures made in the course of the mediation.
Transcripts or recordings or the mediation will not be allowed withollt the prior, written consent of all partics and the mediatur.
Records, reports. and other documents received or prepared by the mediator or Administrator cannot he compelled by an arbilration, judicial. or other
proceeding. with the exception of an agreement that was reached in lhe course of mediation and signed by all the parties.
Neither the mediator nor the Administrator can be compelled to testify in any proceeding regarding information given (lr representations made either in
the course of the mediation or in any confidenlial communication.
9. Mediated Settlement When a dispute is resolvcd through mediatioll, the mediator will put the complete agreement in writing and all parties will sign
the written agreement within ten days of the conclusion of the mediation conference. Every reasonable effort will be made to sign the written agreement
at the end of the conference.
10. Judicial Proceedings and Immunity NEITHER TilE AD!\iIINrSTR/..:nm, THE MEDIATOR. THE NATIONAL ASSOCIATION OF REALTORS@, TIlE
PENNSYLVANIA ASSOCIATION OF REALTORS@. NOR ANY OF ITS MEMBER HOARDS, WILL BE DEEMED NECESSARY OR INDISPENSABLE PARTTES TN ANY ll!lJrCIAL
PROCEEDINGS RELATING TO MEDIATION UNDER THESE RULES AND PROCEDURES, NOR WILL ANY OF THEM SERVING UNDER THESE PROCEDURES BE LIABLE TO I\NY
PARTY F<)R ANY ACT. ERROR OR OMISSION IN CONNECTION WITH ANY SERVICF OR HIE OPERATION OF THE HOME SElLERS/HoME RTJVFRS OrSPIITF RFS( 11.\ lTH)N
IN THE COURT OF COMMON PLEAS
CUMBERLAND COUNTY, PENNSYLVANIA
NANCY A. REED,
PLAINTIFF
VS
NO. 2000-2123
MICHAEL D. REED,
DEFENDANT
DEPOSITION OF, NANCY AMIS
TAKEN BY,
DEFENDANT
BEFORE,
ANTHONY J. BALSHY, REPORTER
NOTARY PUBLIC
DATE,
PLACE,
NOVEMBER 17, 2004, 1,00 P.M.
JAMES, SMITH,
DIETTERICK & CONNELLY
134 SIPE AVENUE
HUMMELSTOWN, PENNSYLVANIA
APPEARANCES,
SAMUEL L. ANDES, ESQUIRE
FOR - PLAINTIFF
JAMES, SMITH, DIETTERICK & CONNELLY, LLP
BY, JOHN J. CONNELLY, JR., ESQUIRE
FOR - DEFENDANT
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FOR DEFENDANT
Nancy Amis
TABLE OF CONTENTS
WITNESS
DIRECT
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EXHIBITS
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DEFENDANT'S EXHIBIT NO.
No.3: Income tax return
No.4: Listing agreement
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PRODUCED
AND MARKED
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NANCY AMIS, called as a witness, being
sworn, testified as follows:
DIRECT EXAMINATION
BY MR. CONNELLY:
Q State your name for the record, please.
A Nancy Amis.
Q And your current address, Nancy?
A 1714 Park Avenue, Apartment 512,
Baltimore, Maryland 21217.
Q You and your husband separated in
September of 1999, is that correct?
A I believe that's correct.
Q Did you rent space in your home to an
individual named Connie Day and her daughter
beginning in the fall of 2002?
A Yes, I did.
Q And did they rent? How long did they
remain as rental tenants in your home?
A Up to middle of June of 2003 I believe.
Q And how much rent did you charge them
for their space in your home?
A
Q
600 a month.
Did you include on your 2003 federal
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income tax return the rent you received from them, if
you recall?
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I don't recall.
I believe I would
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have.
Q I have a copy of your return. It
doesn't appear as if you included that rent on the
return. Would I be incorrect in that regard? I will
show you a copy.
(Income tax return marked as
Defendant's Exhibit No.3.)
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BY MR. CONNELLY;
Q I'm showing you a copy of your federal
income tax return for 2003. Does that appear to you
to be a copy of that return?
A As far as I can tell, yes.
Q And do you see anywhere on that
return you can take a minute to review it -- where
you would have reported the income from the rental?
A No.
Q When did you first begin talking to
Mary Fitts about the possibility of selling your
house?
A Possibly a year after Mike left, and it
was at church or something like that, but I told her
that I wasn't ready.
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Q Did you at any point tell her that you
would be ready to sell it toward when your last child
in the household was going to graduate in let's say
around May, June of 2003?
A Yes.
Q So when Mr. Stout testified that he
would have heard it was going to be on the market
roughly eight to 10 months before it was actually
sold, Mary was aware it was going to come up in that
time frame; that was when you were prepared to do it?
A Yes.
Q When did you begin discussing with Mary
a listing contract for this property?
A Around -- it was after the divorce
papers were signed, so it would be after May 12.
Q But you never talked to her prior to
that about the value of the house and whether you
would list with her and anything about a listing
contract being entered?
A I don't recall.
Q Do you recall telling Connie Day, your
tenant, sometime toward the end of 2002 that you had
discussed with Mary Fitts a value for the house which
was substantially higher than you thought it was
worth?
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A No. I don't recall discussing anything
with Connie Day of the value of the house.
Q When did you become aware that the
house was worth in the range of $338,OOO?
A After May 12. After the divorce papers
were signed.
Q You had no idea prior to that? You
never talked to Mary Fitts about what it would sell
for?
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A I don't recall talking to her about it,
a price, just talking to her about wanting to sell
it .
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Q So you would have talked to her
starting in '99 that eventually you were going to
sell it as you lead up to your son graduating in May,
June, 2003, but never discussed what it would sell
for with her?
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Don't recall.
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Q What did you list it for? What was the
list price on the house?
A The list price was I believe 345.
Q So Mr. Stout's recollection was
correct; it was 345? He countered with 338?
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And I accepted.
Was he also correct in that he was
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advised roughly this all transpired within a week?
A Yes.
Q Was there any market analysis done by
Mary Fitts on the property to determine what the list
price should be?
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A She did a walk-through of the house.
Q Was she familiar with the house that
she had been in it before?
A Yes.
Q She sold it to you?
A Yes.
Q And you paid $205,000 for it in 1997,
is that correct?
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Yes.
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Q I noted on a copy of the listing
agreement which Mary Fitts brought with her today
which will eventually be introduced into the record
that it appears there was some negotiation about the
commission. It looked like there was originally
three percent and that was struck out and 1.5 was put
in. What actual commission did you ultimately pay?
A I believe I paid 1.5.
Q According to your settlement sheet on
page two which is Defendant's Exhibit 1, you paid
$8,450 to ERA-NRT, Inc. Is that Mary Fitts' company?
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I believe that's the same company, Jack
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And that represents 2.5 percent of the
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sale price.
A Okay.
Q But I agree with you. I thought the
listing contract did say 1.5. When did you begin
talking to Mary Fitts about what commission she would
receive based on the sale price?
A After I discussed it with Paula Light,
and I don't remember what date that was.
Q Let's go back in time. The listing
agreement was signed on the 23rd of May. When was it
first presented to you to review?
A About a week before.
Q And it originally had a three percent
commission in it?
A I believe so.
(Listing agreement marked as
Defendant's Exhibit No.4.)
BY MR. CONNELLY:
Q Nancy, you have in front of you a copy
of the listing agreement marked Defendant's Exhibit
4, and it looks like the commission was changed in
paragraph four from six to three percent, and that
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the three percent under subparagraph 5A and B for the
buyer's agent, subagent was changed to 1.5, and at
the bottom there was a note that said that if Mary
Fitts both sells and lists the home, the total
commission will be 2.5. Ultimately that's what
occurred, right? She listed and sold it, so the
commission was 2.5 percent.
A I believe that's correct.
Q Now, your testimony is I believe you
first saw this document approximately a week before
you signed it or do you remember when you first saw
it?
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I really don't remember when I first
I know it was after the divorce settlement.
It was after. How do you remember
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saw it.
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that?
A Because I had made a point of not
making any kind of overtures of selling the house
until I knew that the divorce settlement had been
signed because I knew I was getting the house.
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Q And you never talked to Mary Fitts
prior to the signing of the agreement about the sale
price of this house?
MR. ANDES: I think she answered that
before by saying she doesn't recall.
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1 MR. CONNELLY: Let me ask her again.
2 BY MR. CONNELLY:
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Q You're sure you didn't see this until
after May 12. 2003. Is that what you're saying?
A Yes.
Q What did you do with it when you
initially received it and had the original three
percent provisions in paragraphs four and five?
I called Paula Light up and asked her
Did you go to see her?
Yes.
She saw a copy of the agreement?
Yes.
And that's the time she advised you to
go back and discuss with the realtor adjusting the
commission?
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to help me.
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adjusted it?
language?
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out.
Q
25 as sume?
Yes.
You then went back to Mary Fitts and
She agreed to adjust it based on the
Mary Fitts and Paula Light worked that
So they spoke about it on the phone I
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A I believe so.
Q When did you place your initials on
this contract with the changes?
A I don I t know.
Q Was it May 23, '03, or do you know?
A It was probably around that time.
Q Did you have any idea from any source
as to what the value of this house was prior to
seeing this agreement presented to you, the list
price $345,000?
A Yes. I had discussed that price with
Mary and then I got this sheet.
Q When did you begin talking to Mary
about this price?
A Sometime after May 12.
Q So you had no idea that this was worth
$345,000 as a list price prior to May 12 of 2003?
A No.
Q So this was a complete surprise to you?
A Yes.
Q And you never spoke to anyone else
about being surprised at the sale price or at the
value of the house, specifically the individual
Connie Day I spoke to you about before?
A I may have expressed some surprise to
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When?
I don't recall.
Could it have been in late 2002 or
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early 2003?
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I don't recall.
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Q Do you recall having a conversation at
a meeting with Mr. Andes, Mr. Kissinger, Mr. Reed and
you discussing settlement proposals several years
ago?
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A Yes, I remember we discussed things.
Q And do you recall discussing the
relative value of the house versus the relative value
of his law practice and his interest in the practice?
A I don't believe we discussed the value
of the house. I don't recall that.
Q If you did, you don't recall it? Is
that what you're saying?
A Yes.
Q So when you decided that part of this
deal would involve you keeping the house and him
keeping his interest in the practice, you didn't know
what the house was worth?
A Not at that time. Only through
property assessment.
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And the property assessment was
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218,000, correct?
A Yes.
Q Fair market value, 229?
A Right.
Q And I think Paula Light actually filed
a transfer tax affidavit that said that the fair
market value is $229,820; you recall that?
A Yes.
Q But you have no recollection of
discussing that at a meeting about the value of the
house, but you were aware of the assessed value?
A I was aware of it March 1, 2003, which
is what the date is on here. That's the only time I
was aware of it.
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No.
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Q As part of discussion in equitable
distribution, you never discussed the value of the
house or got any indication through assessments as to
what it was worth?
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I did not have the house
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appraised.
Q I am not asking about appraisal.
asking about county assessments.
I am
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No.
Q Was the house assessed during the
period you lived there that Mr. Reed didn't?
A Yes, it was. It was assessed on March
1, 2003.
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Was it assessed prior to March 12,
Q
2003 ?
A No, not that I am aware of.
Q And did you discuss the assessed value
with your counsel in deciding what to do about
equitable distribution?
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MR. ANDES: She's not going to answer
questions about what she discussed with her attorney
because of the attorney-client privilege.
BY MR. CONNELLY:
Q What did you believe this house was
worth in March of 2003?
A I believe that it was worth slightly
more than 218,206, but I didn't think it was worth
much more than that.
Q So --
A Probably 230.
Q By using the common level ratio which
is how they arrive at assessments times ratio, that's
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what came out to the 229 figure.
Does that sound
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more like what you thought it was worth?
A I didn't do any math.
Q So you thought it was a little higher
than 218?
A Slightly, yes.
Q By the time you saw that and believed
it was worth slightly higher I think you used the
figure 230 -- had you spoken to Mary Fitts about
selling your home?
A No.
Q So she had never discussed price with
you prior to March of 2003?
A No.
Q Before she gave you the listing
contract which I assume you can identify a date by
determining when you reviewed it with your counsel,
did she discuss with you what the list price would
be?
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I'm not sure.
Q Well, let's think this through
logically. You didn't just suddenly get handed a
document listing your house for $345,000, did you?
You had to have some discussion.
A Yes. We did discuss it, but it didn't
take much time to get things moving.
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Q Now, on your federal income tax return
which was marked previously Defendant Exhibit 3 --
you have that handy? Here's a copy of it. If you'll
go to about the fourth page, third page from the end.
It's identified as sale of home worksheets. Do you
see that?
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A Yes.
Q Sale price 338?
A Yes.
Q You put down as an adjusted basis
200,000. How did you come up with that figure? Is
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that what you thought it turned out to be 205, but
you thought it was 200?
A Yes. I probably did think it was 200.
Q And you were aware, were you not, that
your gain here would be excluded under federal
regulations for taxes?
A Actually, no, I wasn't aware of that.
Q When did you find that out, when they
did your tax return?
A Yes, and I don't even recall being, you
know I don't recall having anything to say about
it. I really don't. I don't understand these
things.
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So you were aware you reported an
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excluded gain of $138,000?
A Yes.
Q And I believe your settlement indicates
you actually received -- the settlement sheet
actually indicates you received a check at settlement
for $163,442.86, is that correct?
A Yes. That's correct.
(Brief recess.)
BY MR. CONNELLY:
Q Nancy, when I spoke to you about the
bottom line on the settlement sheet, the 163,442.86,
that was really a net proceeds check to you; you had
no other financial obligations, is that correct?
Your mortgage was paid off; there were no other
debts?
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MR. CONNELLY: No other questions.
(The deposition was concluded at 1:25
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COUNTY OF LEBANON
ss.
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COMMONWEALTH OF PENNSYLVANIA
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I, Anthony J. Balshy, Reporter-Notary
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Public, authorized to administer oaths within and for
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the Commonwealth of Pennsylvania and take depositions
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in the trial of causes, do hereby certify that the
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foregoing is the testimony of Nancy Amis.
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I further certify that before the
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taking of said deposition, the witness was duly
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sworn; that the questions and answers were taken down
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stenographically by the said Anthony J. Balshy, a
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Reporter-Notary Public, approved and agreed to, and
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afterwards reduced to typewriting under the direction
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of the said Reporter.
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I further certify that the proceedings
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and evidence are contained fully and accurately in
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the notes taken by me on the within deposition, and
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that this copy is a correct transcript of the same.
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In
I have hereunto
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subscribed my
04.
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NOTARIAL SEAl
ANTHONY J BAlSHY
Notary Public
PAI.M'/IA BOROUGH, LEBANON COUNTY
My Commilllon Expires oct 9. 2007
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JUN-23-2004 14:43
P.02
~m of ttlt Treasuv-lntemal RevenUl SlI'Vie8 20031 199\
Form 1040 u.s. Individual Income Tax Return IRS use Onh,l.. Do not write or 1taM! In this S"acI.
Fartlw Y88rJan. 1-D8e. 31. 2003 or othBr 1Bx wear ~innlna .2003. endlro .20 OM!! No. """''''''
L.abel L Your soc:laJ sec:urtty number
.. YQurfirst lllUlHI and initisl Last name
(See a Nanev Ami.s 234-86-8038
Insrtrucbons E If B )oIn1 mum, ap. first name & 1nfti81 L.a$t(l.lf'nC S~t;'$ $OCifl $ecUriW number
on PS9! 19.) L
Use the IRS H HClmB aool1l&5 (number and &tf8et).If)'Ol,ll1lYea P.O. boX, see ~ 19. I Apt. no. ... 1m porta ntl ...
label.
OthelWise, . ~7~4 Park Avenue S~2 You must enter
please print ~ City, town Of post office, state, and ZIP code. If you have II tll'1l:lgn addren, see pege 19_ your SSN(s) above.
or type. . Balti.more MIl 21217
Presidential
Election Campaign
See a 19.
1
Filing Status 2
Check only 3
one box.
6.
Exemptions
b
c
If mort than five
"dependents,
see page 21.
Income
Attach
Forms W.2 ar.d
W-2G t.re.
Also attach
Form(o) 1099.R
. if tax was
withhold.
If you did not
get a W.2.
see page 22.
EnclosA, but do
not attach, eny
payment Also,
pleas. use
Form 1040-V.
Adj usted
Gross
Income
~ N:ote. Checking -.yes" will not change your taX or reduce your refund. You
r Do . or r S OU$e iffiJln a 'Qint return. 'Nant $3 to to this fund? ~ Yes No
..",I. 4 ~g~~~;:ohwil".~"rJ~';:l'~ ~nM
Married filin9jOil'ltly {8'vQtl If Only one had int;:Qme) this chlld't1 1*1'1' tJ.,.. 11Io:
Man'Ied fBing .!I(l,,$ratoly. I5nter 'pcIl.l$C':; SSN atxwe 5 0 Ql.aalltying widQwter) WIUl oe~ etlilCl. (See p'QtI20.)
.no: kill hert.
Yourself. tf your parent (or someone 81..) Qln c:l&lim you Be: Ii dependerrt on hi. or hllr tax
rebJm, cio not check box 6.;
n SDO..... ............-........ .......................................
Dependents:: (3) Dependent'15 (4)Ci<..'
(~_. -;'.Ch!
raI8tionlhlp to rchlld
~a1 tee:PJrtly number IaXCIOCIi1
nl Fnr. neme l...Elstntune .~.. ...
Pe1;er T. Reed 161-66-1088 Chi.ld
14
1 b
16b
17
. 16
19
20b
21
22
~
d Tonti number of exemotions oIeimed . . . . . . . . . . . . ..
7 Wages. ..lat.efl.t~,Atc. Atta:c.hFOrm(S)W-2 ....., ,... .., ..........",... ....................... ....
8.\1 Te;Jt&ble interest. Attach Schedule B if required _.................. _ .. . ...... . .. . . .. . . . ... . . . . .. .
b Tax-exempt interest. De not include on fine Sa .... . .. .... ........ l.!e..L
921 OrdiniHY dividends. Attllch ScheduleEl If required ... ....... ............................... ........
b Qualifiect~MClend&(&eepaj823) .................................. ~ 1 410
10 TaxabJa refund!, credits, or offsets of state end local income taxes (see page 2~1) . .. . . . . . . , , , .......
11 A1imonyreceived .... ..... ............. ........ ...... ... ..... ...........,................. ...
12 Busin... income or (loss). Attach SchoduloCorC-EZ ....................................... 0
13a Gapiial gain Dr (1000). Attach Schedule 0 Wrequired.lfnotrequired. check herel~ ..............
b If box on 1 aa is- checketl, enter post..May 5 capllal gain di$tl'ibutions ~
~:a :e~l:~~:n~~~~e~~. ~~. FO~97 ........... - -.' ..' -. ... b"T~b~' ~~~t'(~~~ ~~.~ 25)
16a P8nGIO~ and anr'luitie5 l1bJ I b Taxabil!. amount (He page 25)
17 Rental rliu.lemte, royalties, partnerships. S eorpc....tian&, tlllit&.. 8tl;. Attiloh SQI'llildF,lla ~ ... _. _.. _ __.
18 Farm income or (loss). AttachSchedul8 F .. ............. ........;....... ........ ..... ...........
~:. ~:;,~~:= :::ns.~~~. "Ii2J'" ....... ........ ......I' 'b"';~bi;,~';';;~~'{;';;'; ~~~2':)
21 Olh.rincome. UBltype &aml(s.. page 27) ..... .... ................... .... ...................
22 AcId the amounts in the far ri ht column for lines 7 throu 21. This 1:11 our total income ..
23 ~du""lor .xpeos.o (see page 29) . .. . .. .. ... . ... .. ....... . ... ... 23
24 IRAdeduelion(s..page29) ................................... 24
2!i Sluden1lo.n interest deduction (see page 31) .................... 2!i
26 TF,l1tion and fees deduction (Sbe page 32) .26
27 Moving expenses. Attach Form 3903 .... ::: :~::: ::::::::::::: ::: 27
. 28 OnE~-haJf of self..employm.nt tax. Attaeh $checlule SE ........... __
29 S.lf....mployecl health insurance deduction (see pagl SS) ........ _. 29
3tl Self-employad SE~, SIM~LE.. ~nd ql,.l8lified plems ................. 30
31 F'onalty 01"1 otlrly withdrawal ofs8vingli ............... ._.._..._ __. 31
!2a Alimony paid b Recipient's SSN ~ 32a
33 Add lines 23 through!2a ...: ..... ..... ..... ........ ..... ......... .... .... ......... ....... ....
304 Subtract lint SS from line 22. ihis is'vour adiust.d Qro,.1Ii ineorn.
~O( OiKlasur., PFive~ Act. and Paperwark Reduction Act Notice. see page n.
eM
22~
EXHIBIT
!J .?
It:r~_,~
No
~tico:.bj::$
10 .~ 6b ----!
~'6~ ~Rg~l'cn
· lived. wilh --1
Id you
. did net live
:il1)W1th yClu due
to dtvorcl or
5l1palAtlen
. (see PIIgI 21) _
Dependanta 01'1
Gc n01 en..
WAd abov,
Add nl1mber.
an lines 1"i=il2
above . L-.:I
}
1 427
33
3
-3
097
123
000
34 647
221
34 426
FOrm 1040 (2003)
JUN-23-2004 14:43
rom> 1040 (20031 Naney Ami.s
6:d~i'sd ~:o ~::t{fromE'jn~::::,::~n=~~2:'1939:' ... "8'Bli~d.'}' "'T;,j;,I'b;,;;~~""" ...
if' Spouse was born belo", January 2, 1939. Blind. che.ked ~ 36>
Standard b ~wea:: ~3U8I..:utllf =~lyp=mu~,WU~Ite~.s dedUGtions, or .................... ... 3Gb
De<luetlOn 37 ttemized deductions; (from Schedule A) or your standard deduc.tior'l (see left ~Irgin) .........., . .
'..'....- _t-.....~ 38 Subtr.act line 31 fl'Om Jine S5 . .... ..... ... ................... ...... ....,.....,..... ....... .....
.....- WI.., 39 If line 35 is '104.1!25 or-r' multiply $3 050 bvthetDtal ntMIberol BXsmplion5 claimed On
d11dUtd any lIne6d.1f11ne 3518 overS 04.~, see Ule WCM'kshee1 on page 3S ........................................
box on ru'lQ 40 Taxable il'tCO.,.... Subtract Ane 39 from Kne 38. trUne 39 i$ more than line sa. ente:r-()..
~~' 41 ~"[r :~e4~;~ ~~~.~.".~~y~~.~.~:,...~..~. F.~~').66~4..........""..': :::.. :::::::
eAQ OU'1Ct&: 42 Allemati'YC! minimum tax (see page 38). Attach I='OI'T'n 6251
Single Of 43 AcId lines 41 and 42 .............................................................
~:.;;::'" 44 Fo~n to. c:>'Od~. Attach Form 1116 ~ required ...... .. .. .. .. . .. .. 44
$4.750 45 Credit for chIld and dependent care expenses. Atblch Form 2441 .. 45
Married fling 46 CtOdlt lor the elderly or the disabled. Alta<:h Schedule R ........... 46
~~~~ 47 Education credits..AJ:tac/"1 Form B863 ..... ....................... 47
widow(el'), 48 Retirement savings conb1butions credit. Attach Form 88aO ......... 48
$9,500
49 Chlld tax credit {see page 40) ....... ............ ................ 49
..sO AdopUon aedlt. AttachOFOm\ 883ii1 ,... .... "0 .............. .... $0
51 Credits from: a Form 83Q6 b Fonn 88SQ 51
52 Oth... cnldlts. Check applicable bo><(es): a 0 Form 3000 ...
b 0 Form6601 0 0 Specify . ....".." 52
53 Add lines 441hrough 52. These a", your total cnodits .. ...... ..............................,
54 Subtract line 53 from line 43. If line 53 is: more than lint 43. enter -0- . . . . . . . . .. ..
55 Selr...mployment tllx. Attach ScheduIeSE.........,.. ..................,."",...""...".....
56 Sooialoecur!ty end Medica", I.. on tip income not ",ported to employer. Attach Fc"m 4137..........
57 Tax on qUJI\lfted plan$. Inclucllng lRAs. lIno O1ner taX.~eo 8ccountt. Aben Form 5329 it reqUifad . . . . . . . . . . . . . .
56 Advanos .emod Income cred~ paymenlsfrom Form(.)W-2 ....... ..... .... .......... .....,......
59 Hou.ehold employmonttalol.. Attach Schedul. H d....... ......................................
60 Add IinR 54 .. Slit ThIs: ill r total tax ...
61 Fede<allncome taX withheld from Form. W.2 and 1099 .... ........ 61
62 2003 estimated tax payments and amount .ppli$d from 2002 return 62
63 Earned income credit (ElC) ................................... 63
64 E.c... social ...urity and lier 1 RFlTA tax withheld (se. page :;6) 64
65 Additional child tax credit-Attach Form 6812...... ................ 65
86 . AmoI,lJlC rl~WltrI reQuestfOl extenSior.to l'ile(see palilf: 56) ............... 66
67 mrm?~m a 0 Form 2439 b 0 Fenn 4136 a 0 Form 8885 67
68 AddlinH61 thl'OU9h81. ThBee Sn! your total payments ...,......... ..... .......... ...
69 If line 68 is more than line 60, 8ubtreclllne 60 from line 68. This is the amount you overpaid
~ 7~ =~; :;:e~g yQlu wont r.funded t. r~' ~. . . T~;;: . 'tJ. Ch.;.;k;~g . 'D . ;~~i~~~ .. . . . . .
,. d Aoccunt number . I
71 Amounl of line 69 vou want BDDlied to your 2004 estimatld tax .. I 11 I
72 Amount you owe. Subtract line 68 from line 60. For details on how to pay. see pa'~e 57
73 E.timatcdla...naltvl.....a.58l................ .... """. ~ 26
00 you want to allow aooth", person to dl.cussthis ..tum wnh the IRS (see pege 56)? Y... Complot. the following.
Dnignes's Perval'dlllldentlflclltion nl,lmbeC' (PIN) ... I I
name ~ Pre"Parer Phone no. ~
Ut\dtt P.8MIIi_ Df ~Ijury. I dare U\et I hive e)C3MJneCI this retum and accompanying KlhBduIes andl statements. and to the best of my knowledge etld
bClrlOf, U'l8yal"B tnHi. CDI'T8ct. and complete. Oec"~iOn of~l'tOOret (ott'JOl'tNIn tilxpiyei'). blind an aN irialmatk:Hi DfwtW:h prerwer hIS JnV ki'lOWllOCf$O.
your sigNilUre Date Ycu occupation . o,ytime pAone number
Stucient: '
Hli!lladof
~~Old.
Other
Taxes
Pa ments
IfyguhawiI
qlJElhfylng
ctI~d. abact!
SchBdule EIC.
Refund
Olrwct depolllt?
SM page 56
andfil&n7'Ob.
7OC, ~ 7Od.
Amount
You Owe
Third Party
De$ignee
Sign
Here
Joint ...wm? ...
Sse page 20. r
Keep a copy
for your
~cord&.
Spouse'S $ignature. If a jOint.l'ttum, both mulit sign.
Date
$poU$e'S oocup&tiOI'l
PrePfilrtlr's
~
Paid """
Preparer's "tfm'S f1afl'le (or ...
U$I!: Only )'O\.II'1i' if 581f.../ilmpbyed). r
IldDI1IS5. and ZIP code.
~. Che~ If
4/08/04 self .
e~~er F~nanc~a~ Group, Ino.
~7 Eas~ H~qh St:ree~, Su~be 103
Car~:i.s~e :l:'A 1'7013
OAA
P.03
.... ,\
7
27
6
21
000
426
100
326
!
2 560
2 560
I
,
I
i
I
2 000
560
441
1 001
I
[
[
.~l'1Il"5 SSN or ~nN
:1:'00299822
.IN 25-1821312
Phone no.
717-243-8553
.""" 1 040 1<00>1
P.04
JUN-23-2004 14:44
SCHEDULE C
IIForm 10#)
, Oepal'ltYlCCltoftheTreasury _u
\TUemal Revenue ServiC8 1119
Name of proprietor
(.
5
6
Profit or Loss From Busines!l
(Solo Proprietorship)
.. Partnerships, joint \l't!!ntures. etc.. must file Fonn 1085 or Form 1065-8.
. . .. _. A_hm.nl
~ Attach to F0m'11040 Or 1041. .. See In'$m.u;;l1ons for S(~hf!dule C IForm 10401, SM~~ No.
Social $~urity numMr (SSN)
OMS No. 1545-0074
2003
09
Nancv Jlmis
A Principal business or prof$$$lon, Includlng product Of service (see page C-2 of the instn.lotions)
Author and Art~st
C Business name. If no separate business name, 19a.ve blank.
234-86-8038
8 Ent.r c;od. from pages C:-7, a, & 9 I
... 7:1.:1.5:1.0
o EmployerlD number (lilN), ifany
E
Business.ddress(lm:Juding suite or room no.)'" .,.. ..;1,4,:1..9.. ~~J,l,y' ..p.~~~.............................................................
Oi .Iownor ostoffice stata..ndZiPcode Car1.is1.e l'A 17013
,",counting method: (1) X ca.h (2) AccNal (3) Other (specify)" ,..................
Did you "materially pBrticipate" in the operation of this business dUl'ing 2003? If "No," see page C-31or limit on 10$s,s .............. ..@.....Y.o.'S...,.....'O. N~
If u started or ui thlsbuslness durin 2003 check here......................................................... ~
Income
Gross receipts Or sales. Caution. tf this income was repotted to you on Form W-2 and the "Statutory
BmpIQyee"boxontha~formw~:;ct'lQ;cked.seepagec.3andch.ckhere ..,.............................. ... 0 1 S 230
Retutn$ and allowances 2
........................................... ............................;.............
Subtract line 2 from line 1 .... ..... ...... ........... _....... ...... .......... ........ ........................... 3 5 230
Cost of goOdS sold (from IIn.420n page 2) ....................................... _.,........................... 4
2
3
Gross profit. Sl.lbtrllctline4 from line 3 .. ..................................... ..................
Other.income. includinQ J:~.ral Ql'la sta~e 9,$OJ1ne or fuel lax credit Of refund (see psoe C")} .....................
5 230
5
6
1
Gross income. Add line5 5 and e . . . ...
Ex enses. Enter ex enses for busin e ur home onion line 30.
Advertising. ............... 8 19 Pension and pro1\t-Sti8ring plans........
Car and truck expenSlt5 20 Rent or lease (see pll~ C-5);
(5ee page C-3) .. .. .. .. .. .... . .. . 9 a Vahioles. machina",. end equipm.nt ....
Commissions and fees .......,... 10 b Otherbusinessproporty. ..............
COntract labor 21 Repairs and malnlenance . . . . . . . . . . . . . .
(seepage c.4) ........ ......... 11 250 22 Supp.es (not included in Part iii).. ......
Depletion........ 12 23 Taxes and Hcensn .. ...... .....
Depreclalion and saction 179 24 Tl'avaJ, meals. and entertainment:
expense deduction (not included 8 Travel
in Pan Ill) {see page C-4) ... 13 b M.n"'t.tIaIS.,'n'~mde'nt'" .c.............. .'.,......
Employee benefit programs
(other than on line 19) ...'....... 14 f; Enmr ncndtlciucl:-
ible ul'l'Iourn In. .
Insurance (other than health) ..... 15 c:11,lC!.d on Iine24b
Interest: (see Plge C-5)
Mortgage (paid to banks, etc.) .... 18i11 d Subtract line 24c frorn line 24b . ... ... . . .
Other ........ ..... ........... 16b 25 Utilities.. ........... .................
Legal and professional 26 WagC$ (less employment credits) .. .
services........................ 17 1 050 27 Otherexpenses(frorn line 48 on
~M~ 18 ......... ........,...
Total expen$e$ b.fore expensQG: for business use of home. Add IinA$; 8 thtOugh 27 in columns . ... . . ... . . .. . .. ...
5 230
1
807
8
8
10
11
12
13
204a
14
15
18
.
d
25
26
b
11
27
28
18
26
2 l07
Tentativ. profil (Io.s). Sublract fine 26 from line 7
Expem~e$forbusin.ss US8 of your home. Attach F~~'8829'::: ::::::::::: ::::::: :::::::::: ::::: :::::::~::::::,.,.
Net profit or (loss). Subtrad line 30 from line 29.
elf a profit, enleron Form 1040, line 12, and mso on Schedule S!.,line 2 (statutory employees,
see page C-6). Estate$ and lrusts. enter on Form 1041. line 3.
elf a loss. you must go to line 32.
U If yol,l h.ve ; 10$&, ctMlck the box that describes your inve$b'nt.tnt In this activity (see pa9i!li C-6).
-If you checked 32&1, enter !he 10S$ on Form 1040.lin~ 12, and .,150 on Schedule SE,line 2
(statutory employill.s. see page C~). Estates and trusts, enter on Form 1041. line 3.
-If yOU ct'leeked 32b. you must attach Form 6198.
For P8:perwork Reduc:tion Act Notica, SBiIl Form 1040 instructions.
OAA
3 1.23
28
30
31
29
30
} 31
}: B
3 :1.23
All inwl5tmtlnt is at rislC.
SOma invesrmillllt is no!
......
Schedule C (Form 1(40) 2003
JUN-23-2004 14:44
P.05
VfIllGl'>fV, ~,"t
""""II......."'...... ...,
llForm 1040)
~l'ItcftheTfl!IB:!iury
Intemalllt6Venue SeMc:e 99
. NaJT\ei,) shown Or) Form 104(1
1 Nan 1Im.is
Short-Term Ca
(.) ~i;I'iptiOn 01 (b) Dete
propt:r1y (Example: flCQr,lIret;t
I ~oo "', XY2 Co. Mo., eta. .
Capital Gains and Losses
.. Attach to Form 1040. .. S89 Instructions fDr Schedule 0 (Form 1040).
.,. Use Schedule 0..1 to "st addttiona' tnlnsactions fOli Iln s 1 and 8.
AGament
S Ulncs No.
Your social security number
234-86-8038
2003
12
ital Gains and Losses-Assets Held One Vear or LI:s$
(c) Oate-K1ld (d) Sa&n price (e) CO$1 or other basls
(15M page D-& of (lee Pf90 ~ of
(Mo.. <1ll.y. yr.) the inSlrudioM the instructions
(f) Gain or (Iou) for
the entire year
Subtract e frcm d
(g) Post-May S gain
Dr (loaa)"
StMbalow
2
Enter your short-term total5. If any, from
Sohedl.Iloo..1;1in.2 ...... ...........
Total short-term sale5 pric. amounts.
Add Une$1 and 2 in column (d) .... ... 3
Short-term 51aln from Form 62!52 .nd short-term gain or (IOlliS) from Forms 4684,
6761, and 6624 ..................... _.. __...........................................
Net short-tenn gain or (loss) from partnelllhipa, S corporations, estates. and trusts
from Setledule(s) 1(-1 ......................".................. _.....................
Short-leon capital loss eai'J)'O".r. enlor the amoun~ Wany, from lino 8 of your
2002 Capital Loss Carryover Worksheet .. ........ ... ....._..... ....... _......... ......
74 Combinelinas 1 through 5 in co!umn (g). If the result is a loss. enter the result.
Otherwise,enter..o-. Do not entermorethanzlilrO................ ............ ....... ...
e 0 c 'tal in or 10S$. Combine lines 1 throu h 6 in column 7b
Lon -Term Ca ital Gains and Losses-Assets Held More Than Onl' Vear
. (b) Oatil (c) Data IiOId (d) SaIe$ pric8 (0) Cost orothsr basili (f) G.in or (108.) for
M~~I~d (Mo..oay.Yf.l (:'.i~=nsof (see=~of sut~nt~re~.rd
h Bri.sto
11./25/9
300 h Gen E~
11. 25/9
2
"
'1
I 3
.,
4
.5
,.
..
6
la) Dncription of
1 _(Example:
J 100 sh.lM Co.
8 300
to) Post-MBY 5 gain
or (10"')"
.J
I
7 733
14 175
-6 442
-6 442
8 168
6 6E;9
1 499
1 499
9 Enter your long-term totals, if any. from
ScheduteO-1, line 9 ................. 9
110 Totallong-tenn a:1lIe5 price amounts.
Add in.s 8and 9 in column (d) ....... 10 15 901
~ 11 Gain from Form 4797. Part I: long-term gain from Forms 2439 and 6252; and
i
1 Jong.otermg8in or (loss) from Forms 4684. 6781. and 8824............. .... ...... ........
'12 Net long-term gain or (Jos,) from p~rtnership~, $ c;:orpetations. e$'tate$, and trusts
from Sche<lulo(s) K.1 ............. ...........................................
113 Capital gain distributions. See. page 0-2 of the
instrueuons
11
12
13
220
220
14 Long-term capital 10.. eai'J)'Over. enter the amount. if any, from ~n013 of your
2002 Capital Lose C\;lrryoverWorkshe<< ..,...... ............................
15 Combine lines a through 13 in column(g).lf:zero or less. enter..o. ................ ........
j 16 Net long-term capital gain or (1056). Combine lines e through 141n column (f) ...........
Ne)(t: Go to Part III on the back.
; . Include In COl1.llM (g) ell 9;1in$ end )OllIses fl1;lM column (I) from sales. exchanges. or corweralon9 (Including Instalment pllyrnents Ailceived) after
M;,y 5. 2003. However. do not i'tcIlJdlo Olin aUribulable to unrecaDtur'8d sQCtion 1250 gain, aeollectiblos gaina and Io;.ses"' (a, defined on ~~
j 04 of tl'le iMtructicns) or eligible gain on QuaUrl8d em.11 bu$ine" staek. (elK: page D-4 of the instruetlons).
J ~ Pap.rwork Rodudion Ad. Notiu. see Form 1040 insttuetion~.
Schedule D (Form 1040) 2003
JUN-23-2004 14:45
Nancy Ami.s
Schedule 0 (Form 1040) 2003
~ 'Tal(able Gain or Deductible Loss
17a Combine lines 7b and 16 and en~rthe result. 1111 loss, enter..Q-on line 17b and go to line 18.
lfa gain, enter the gain on Form 1040, line 13e1,8nd go to line 17bbelow .,......... ................................
b Combine lines 78 and 15_ 1f %ero or less, enter -0... Then complete F0f'!TI1040 through line 40 .. . . . ... . . .. . . . ........ ..
Next: . If line 16 of Schedule 0 is a gain or you have quarlfied dMdendG on Form 1040, line
9b. compkJte Part IV below.
. Olhetwise. Skip the rest Of SChedule D liimd oomplete the rest of Form 1040.
18 If line 17a is a loss. enter here and on Form 1040. fine 138, the smallsr of (8) that loss or
(b)($3,000)(or, ~"",rried filing sopa..lely, ($1,500})(see page 0-7 of 1110 instructions) ,,,,..,,..,..,................
Next: . I'you have Qualified dividends on Foon 1040, line 9b. complete Form 1040 through
line 40, and then complele Port IV below (but skip IIn..19 and 20).
. therwise ski Part IV lete e rest of Form 1040.
Tal( Com utalion Usin Mal(imum Ca ital Gains Rates
If line 16 or lina 17a iSDro or lass, skip lines 19 and 20 and go to line 21. Otherwise. go to Iine1Q.
Enter your unreeaptul'Gd section 1250 gain, if any, from line 18 of lhe worksheet on page 0-7 l1.LJ
Enter your 28% rate gain, If any, from line 7 of the worksheet on page 0..8 of the instructions.: : :: :: :: : : : ::: :: ::: : :: : :: eM]
tf lines 19 and 20 ara zero, go to line 21. otherwIse, complete the workshMt on page D.11 of the instruction5 to figure
the amount to enter on lines 35 and 53 below, and Skip all other lines below.
Enter your f;8xable income frnmForm 1040,1ine40.......... ....-.-.......... -'.. ...t5i... ......... .......n.... -.
EnterthesmanQrof~ne 1~orline 17a, but not le:$S than:el'O ....................... 22
En..ryou'qv.lifieddiy;dend.fromFonn1040,line9b.............."",......"". Z3 1 410
Addhnes22and23...........",...".."..................................... 24 1 410
Amount from lina 4g of FOm'l4052 (rnv.$tment interest expense) ........... _. .. . . . . . 25
Sublracl: line 25 from fine 24. If zero or less. enter..().. ... ... .............. ........_. __.... ..... ... .......,..... ...
Subtract line 26 from line 21.lfzBro or le$$. $n[er-Q-
............................................................,
I!ntar t;hs mla;lIer of line 21 or.
. $56.800 If married fi. ling jointly or qualifying Widow(er); }
. 528,400 ifsingJe or marriecl filing separatel)'; or .... .".................
. $38,050 If head of household
If line 27 i$ mo~ than line 28, skip lines 29-39 and go to line 40.
Enter the;moul'lt from Ih,e 27 ..... .............. ............. ............
Subt:rad line 29 from line 28. If zero or less, enter -0- and go to line 40 .............,.
Add lines 17band:l3" ..........................., 31 1 410
Enter the smaUerof line 30 or line 31................ ........."..,. ".".....,... 32
MulUplylin. 32 by 5%(,05) . ...... .... ... ..""" """""""" "",.. .,........... ,.""
If lines 30 and 32 are the sarnQ, skip lines 34-39 and go to line 40.
Subttootfine 32 from fine 30 ........ ......W.... I
Enter' your Qualified s.year gain, jf any. from
line 8 offhe WOl'k5hMt on p~~ 0-10 ........... ... 35
Enterth9 smaller of line 34 or Iln$ 31S ......... ......... ... .... .................... 36
MU"lpJy line SS by 8% (.08)....................... .......,.. ,.... ..... ...................,..,........,..,......
Subtroctline 36ltomr...34 ..................................................." I 3S I
Multiply line 36 by 10% (.10)
If lines 26 and 30 ill'1i! the sa.~~: '~kip ii~'~40'.49~~dg~k,'li~~'5o:""""'" ..... .......... "......" ... .... ....
40 Enter the Smilller olline 21 or line 26 .. . . . . .. ~ .. . . .. .. . 40
41 enter the amount from Une 30 <If In. 30 is blank. enler..o.):::::::::::::::::::::::::: 41
42 SubtraetIil"le41 from line 40 .. ".,. ........... .......... ... _...._. .._......... ... 42
43 Addlln..17b and 23" ............................ ~
44 Enler Che ClII'1"1Ctr.D1t from line 32 (It line 3211 blank, entl!!r~) "
4$ SubtrtJet line 44 from line 43 .,.......,...,......... .S
46 Enterthesmall~rofline420rline4S................ .....................,. 46
47 Multiply line 46 by 15%(.15)................. _...... ..._.........,..,.,...,. ..,
48 Subtrnd: line 46 from line 42 ..___......... ........ .._.._ ......... ..........,:...:. .~............
.. Mvlliply line 48 by 20% (20) ... , , , .. . . .. . . .... . . . ... . . .. ..... ... . .. . . . . . . .. .
SO Figure the tax on the amount on line 27. Use 1he Tax Table or Tax Rate Sch8dute~. .~~~ ~pp]i~~ . : : :: : : : . . . . _ _ . _ .
51 Add lines 33. 37. 3G. 47. 49. .nd' 50
........................................- ................. ....... ........
52 Figure the~;( On the iuoount on line 21. Use the Tax Table or iax Rate SChedu5es. whichever applies
S3 Tax on an taxable income. Enter the smaller of line 51 or line 52 here and on Fonn 1040. line 41 ................., _.
cillnes 23 encI 25 iIIlV R'lOIe than Ulrt!,:see Unes 31 .00 4:) on oeQe 0-9 for the .mount to emer_
P,06
234-86-8038
~age 2
17.
17b
-4 723
o
19
20
1
21 326
21
22
23
:!4
25
26
Xl
28
29
3ll
31
32
33
19
1
34
35
36
37
38
39
49
50 2 489
., 2 560
52 2 699
53 2 560
Schedule D IForm 1040) 2003 . j
JUN-23-2004 14: 46
SCHEDULE SE
, (Fonn 1040) Self-Employment Tax
1 ~ptlrtrnen!'Of lhes~~wry 99 .. Attach to Fonn 1040." See Insttuc:tions for Schedule S Form 10
~ of pel'BOll with seM-employment k\come (as shown en ~orm , 040) Social security number of person
1 Nanc Amis with$elf-l!!m I Qntil"llcome"
,
Who Must File Schedule SE
I You must file SetJedule SE if: .
j. You had nlllt sa-mings from self..employment from other than church employee il'\oome {rme 4 of Short Schedule SE or line 4c of
l L.ons Schedl.lle SE> of $400 Of more or
· You had church employee income of $108.26 or more_ Ineome from services you perfQm'led as a mlnlsmr or a member of a
] reHglous order Js not c1l(,Uch employee Income (ne psge SE-1).
NQte_ even jf you had a loss or a e.maJl amount of income from self...mployment, it may be to your benefit 10 iil$: Seh$dul$ SE and
use elfher .optional method. in Part /I of LOflg Schedule SE (see pellO SE.3).
] ~geption. If your' only selfo.empk>yment inc;oma was from earnings 8S a: mini$lel" m.mber of 8 religious ordl"r, Qr Christian Soience
practitioner and you flied Form 4361 and received tRS Ijl'pproval not to be taxed on thou .amlngs, do not fiie Schedule SE. lnstNd.
wrtte "Exempt~f=orm 4361" em Form 1040, line 55.
234-86-8038
: May I Use Short Schedule SE 0' Must I Use Long SChedule SE?
I
,
~
v..
1 N.
Did You Recetv411 WaCM50rTiDS In ~003?
+
Jw you a mJniater. memberpf.a I'Cli~ order. or Christian
$O\e11Ce PftlClIitionet' Who recelved IRS approval 0Qt \Q bt#: ~ed
on eamina$ from tt'l~e SOl,lt(:el. but you owe Hlf-emplOyment
ta:K en other allmings?
v..
Wal the to~al of your w9g4IS and' tips subj.et to social SeQ,lflty
ot l'Q:ill'OI.d re1iremtf1t l;&ilIO 1;111,15 your net umingli from
:ss!f.empJoyment more '!han $57,0001
N.
Me you PJJing one of the apliooal mttntlOS 'Q figl.n)'OUr net
earnings (SB8 page SE.3)1
Ve.
N.
N D Did 'rOU I'e/alve tlPl $l,ll~~ to SOCial security or MSdicarc tax
mal you did not ~r1: to yOr.lrern~
L.
I
)1
Old you receive church &IT1pfoyoQ inCO/T'lll reported on Form
W-2 of '108.28 Or more1' .
N.
Yes
You Milly Use Short Schedule BE Balow
You Must Use Lana Schedut. SE on page 4:
~~qf3XL~~:;tr:.y;t;':";~''?::l\~<~~~~
::u, "....'t\..."-'~..h&t...,,...,."""-.i ::;y "'" ~"""""'.-
~i7~f:~~:':.;; ;L;';it:t~~f5
t1"' ,~,- w, ". . ....." . ""
~t~.~;2:.~?~51G~;~~
I Section A-Short Sehedule SE. CautIon. Read above to see if you can use Short Schedule SE.
I
) 1
Net (ann profit or (lClS.$) ftom Schedule F. lille 38. and farm partnerships. Schedule K-1 (Form
1065). line 150.................................................................................................
2 Net profit or (loss) from senedu!e C. Ilne 31; SclJeduJe C-cz, Iin. 3; Schedule K.1 (Form 1065),
fine 15. (oth.r than fanning); and Schedule K.1 (~orm 1065-B), box 9. MiniBle'" and memb"'$
of f'Qligiou5 orders, see page 5e..1 for al7'lOUflts fa report on this line. See page SE.2 for other
inoome to I1iIpott .,...,......... _.......- ... .......,.. ,... ...,.. __.. _.. _.............".,.,.....,. ,....- ._._. _.-._.
3 Combine fines 1 and 2 . . . .. , . . , . '" . .. . . . _ _ _". .- . . . .- ... . . . .. . .. .. ..... ... . .. . _. . _ . . . . _ _.. _ _. '-'. . . .. , ,. , .... , .' . ,
4 Ne' e.rnlngo from ..If-employment. Mulijply IIn. 3 by 92.36% (.9236). If le'$ than $400.
do notfilelhi$ $Ohodul.; you do not owo ."tf-employmonttax................... ......................... ....... ~
5 Selflmployment tax. If the amount on line 4 is:
· $87,000 or Ie.., multiply line 4 by 15.3% (.153). Enterthe '..ulthere and on
Fotrtl1040.lina 55.
· MQre than $87,000, multiply line 4 by 2.9"1. (.029)_ ihen. add $10.788.00 to the
result. Enter the total here and on Fonn 1040, line 55.
2
3
4
}
5
6 Deduction for one-h~lf of self-employment tax. Multiply line 5 by
500/11 (,5). Enter the result here "nd on ~Otm 1040. line 28
FOI' Paperwork ~Qduction Act Notice. see form 1040 Instructions.
16 1_
221
S"hedule Sf;! (fol'M 104Q) 2003
OM
P.07
OMS No. 1tH5-n074,
2003
Allachmenl 17
S Ullncs Na.
v..
Ye,
3 123
3 123
2 884
441
. Form
JUN-23-21211214
t)Ol),)
14:46
p.re
a;UU\"'clUUII '-". 'l:;;UU<3
(Hope and Lifetime Learning Credits) 2003
I ... See instructions.
OePlIrtmsnt qf lM T~ F 1 Attaet'lment 50
Internal Rev nue Service .. fiat fotn1 1040 or ann 040A. S No.
Name(4) shown on return Your soclal security number
] Nanov Amis 234-86-8038
Ca~tion: You cannot take both an education oredlt and the tuition and fees deduction (Form 1040, line 26. or Form 1040A,
line 19 for the $3:mt student in the same BaT.
Ho e Credit. io'" You ca""ot take the Ho
Vl....anu. 1""'.1-111'11
credit for more than 2 tax ears for the same student.
1
(ill) Student's name
(as shown on page 1
of your tax return)
First name
Last name
(b) Studenrs
social security
number (as
shewn on page 1
01 your tax return)
(e) Qualified
_11U$(0..
Instructions). 00
not enter more
than $2,000 for
each student
(d) Enter the
smaller of the
amount in
_(<:) or
$1,O0l)
(el Su~lra'"
column (d) frOm
column (c)
(I) Enler cn..,.,lf
af the amount in
c:olumn (e)
2 Add the amoonbin columns (d) and (f) ....... .....:... ..... ..,....'., 2
3 Tenbil~ve Hope ctedit. Add the emClunhl on line 2. column$; (d) and (1). If you are t.ldng
(he lifetime 'eamin oradlt for another student. 0 to Part I- ther'Wi&tl. to Part III .. .. . . , . . . . . . .
Lifetime Learnin Credit
4
(it) Student's namf: (.as shown on page 1
of your tax return)
Caution; You
~nnot talm the
HOpe credit and
the lifetime learning
credit for the .RIme
.tudent in the
same year.
Add the amounlti: onlinll4. column (0), and $nlerthetotal ........"............. ...........,..........,............
Enter the smaUar effine 50($10,000 ............ .....,.......... .................,...
Teotative lifw:l:ime learni credit. Mulli line 6 b %.20 and 0 to Part 111
Allowable Education Credits
First name
NancY
Lest name
Anci.s
(b) Studenfs soc~l
security numb$1'
(as shown on page
1 of ur tax retUm
234-86-803
(c) Qualified
Ixpenses(see
insln.IcIIons)
l4 83S
.--.....--......,...~
5
5
7
14 835
10 000
2 000.
16 574
2 000
8 Tenb:!tiveeducation credits. Add lines 3 and 7 .......... ....... . ..... ............. ......... ...... ..........,.....
,9 Enter~ $103,000 If merried filing jointly; $51,000 if ~Ingle. head at
houS.hold.orquallfylng widOW(or) .. ............... .,.,.......... ... ......,..,.....
J 10 Enter the ~mou/'ltfrom Form 1040, line 35"'. or Form 1040A.line 22 ............. .......
j 11 Subtract lint 10 from line 9. If zero or lesli, stoPi ~u cannot take
any educalion credits .... ......................., ,.".. ......... ...........".. '" 11
, 12 Enter: $20,000 If married filingjoin~y; $10,000 if.ingle, head 01
I
household, orqualifyingwidow(er) '... .... ........ .......... .......... .....,'.. ,... 1
j 13 If line 11 is equal to or more thl;ln lIne 12, enter tt1$ amount from line 8 on line 14 and
go 101m is. If line 11 is JeS& than line 12. CSivide line 11 by line 12. Enter the result;as
I a decimal (rounded to at teastthree places) .. _'" ................ ........................ ....,... ............. ....
J 14 MultiPlY line 8 oy line 13 . .. . . . . . . . .. .. . , , . . , . . . ... .. ... . . .. , .. , , .... .. , . . .. __. . . . . .. . . . , .. . .. .... . . . . .. .. .. .. ..
15 Enter the amountfrQm Form 1040. line 43, or FOnTI1040A.line2B ......... ......... _. ..............................
: 16 Enrerrnetotal1lfsny, ofYO{Jr~ls-fromForm 1040.lin~44lt'JrOVQh46. or
i
j Form 1040A, lines 29 and 30 ...... ........ ..... ......................... ..... ........ ................,....
17 Subtract fine 16TrQm linG 15. If zero or less. stop; you cannot take any edueation
credll. .. 17
! 18 Educati~~'~;~di~:e~(~rth~~;';~i,~~'~iun~'i4'~;n~17~ ;.;.;d~~'F;;;';1040:...n.........,. ................
line 471 or Form 1040A, tine 31 ... 11
.See Pub. 970 for the amount to 'enter'lf -..:c;u ~~~ 'fifi~~ '~onn '2555: 255S.ez: ~'4563 .~; ~~. a;.e e~IUdlr~ .~~ .trt:;;' Puerto RicO.
I For Paperwork; Re,duation Act Nolice, $OC page :1.
OM .
9
10
Sl 000
34 426
:to 000
13
14
15
x
2 000
2 560
16
2 560
2 000
Fonn 8863 (2003)
JUN-23-2004 14:47
P.09
, . Form 1040 Unrecaptured Section 1250 and Capital Loss Carryover Worksheets
.1
I
No"'"
Nancy Am;'..
Unrec;aptl,lred Se<:tion 1250 Gain Worksheet- Line 19
If you are not reporting a gain on FQnn 4197, line 7. Qclumn (g) skip lines 1 thl'ough 9 and go to line 10.
1. If you have a seotion 1250 property in Part III of Form 4797 forwhieh you made an entry in Part I of Form 4797
(but not on Form 1$252), enter the OJ1'LGlller' of line 22 or line 24 of Form 4797 fot that property. If you did not
have any such property, go to line 4. If you had more than one such property, see h'$tr'Ucdons ......................,. .....
2. Enter the amount from Form 4791, line 26g, for thE! property for you which you made an entry on linG 1 .....................
3. Sut;tVact line 2 from line 1. "CTotal amount i. reported. See the Unrecaptured Section 1250 Gains stint ~Dr detail) ..,.........
4. Enter the total unrecaptured seotion 1250 gain inCluded on line 26 or line 37 of Form(s) 6252 frgm inliiliiillllment
sales of trade or business propertyhetd more than 1 year (see insln,lctions) ............ ......................,...
!S. Enter the total of al"l)" amounts repol'ted to you on a SChedule K-1 from 8 partntl'$hlp or an S corporation
as "unrecaptured section 1250 gain" ........ ........... ........ ........... ........,.....,.... 0....
6. Add IInss3 through 5....,...,.,........... ......,...... .............,..... ..........,... """.,..
7. ente:rthe smaller afllne: 6 or the gain from 4797, In 7. col (g) 7.
a. Enter the ~n'Iount. if any. from Form 4797. line 8. CQlt,lmn (g) ...... __ __..................... 8.
9. Subl:nlQtru"le 8 from line 7. Ifzerool'less. enter-O- ..... .... ..................................... .........,..... ......
10. Enter the amoynt of any gain from the Hie 01' exchange of ijln In1e.test In 8: partne~hip attribublblc to
111. ~~::~:I.:~; ~~:~t:i~e(:~:'~'";:~~~ ~ .s.;h;.d;,j~ 'K:j: F~ 1099.[jlii.~; F~ '2439 .~~ . . . ... . . .... ... . .. . . . .. .
"unrecaptured section' 250 gain" from an estate. trust. real es.tate investment trust, or mutual fund (or
other'l'&gulated investment oompany)........ .......... ... .... ........ ...,....... .... ..............,..... 0....
I 12. Enter the tot21 of any unrecaptured section 1250 gain from sales (including ins~Ument sales) or other disposllions of
! section 1250 j:lropeftY held more than 1 year for which you did not make an ent"Y In Part I of Form 4797 101' the
year of sale (see instructions) .................... ................ .............. ...,...... ...,... ..............
113. Add lines 9lhroogh 12 ......................... ......"....................,...........,. ..................
I 14. If you had any section 1202 gain or collectibles gain.or (lo~). enter' the total of lines 1
J \hl'tJugh 4 of the 28% Rate Gain Worksheet on page 0.6. Otherwise. enter ~Q- . . , . . . . . . . 14.
, 15. Enter the (losS), if any, from Sch D.line 7b. If SCh O.line lb, is zero or a gain, enter...().... 15.:.L.
i 16. Enter your long-term capitallO$.S carryovers from SchedLlle D.line 14, and SOhedule K-1
. (Form 1041), line 130.....,..................................."........... ............ 16J...
17. Combine lines 14 through 16. lIthe result Is a {loss), enter it as a positive amount. If the resultis zero c>ra gain enter-Q- 17.
i 18. Unl'Ccaptured $I!!ction 1260 gain. Subtract line 17 from line 1S.lfzero or less. enter-C-. Enter th.
j rE&ult here and on Schedule D. line 19 18.
1. .
2. .
3.
4.
5.
6.
9.
10.
11.
12.
13.
Capital Loss Carryover Worksheet
; Use this worksheet to figure your capltallos8 ~1l)'O"ers from 2003 to 2004 rf SdMldule O. Line 18. Is a loss Elnd (a) that loss is a smaller 10.& than the
\ Io5S on Scnedute D,line 17a, or (b) porm 1040, line 38 i$ sloss. Otherwise, you do f'IOt have any carryovem.
i
1. Enter the amount from Fonn 1040. line 38. If a loss, enclose tile amount in p:illrentheses
2. e.ntetthe loss from Schedule C.line 18.:iIIs 8 positiveamoul"lt . 0.......................".. ,.....
] 3. Combine lines 1 and 2. If zero or less, enter~"........ ...:: :::::::::::: ::::::::: ::~::::::::: ::::: ::: ::::::::: ::::::
4. Entarthe small.r of line 20r line ~ ............. ........ .............,...."...,.. 0........... .......
If line 'Tb of Schedule 0 is a 10", go to line S; otherwise, enter -0- on line 5 and go lo line 9.
5. Enter the IO$Sfrom Schedule D, line 7b. as a pol!litive amount..................................,......., ,... ...........
6. Enlerlhe gain, if any. from Schedule D, line 16 _........... ...............,......... ...... 6.
7. Add lines 4 and 6 ...., ... ..............,................. ..... ........ ................. ..........,.............. ,.
8. Shorfrt~rm capital loss carryover to 2004. Subtract line 7 from line 5. If zero or les5. enter -0-
If line 16 of Schedule 0 is 8 loss. go to fine 9; otharwise, skip lines 9 through 13.
9. E;nter the loss from Schedule 0, linQ is, as a posItiVe amount .....................................
10. Enter the ~In, ffany. from Schedule D,line: 7b ... ........,.......,........... ........,... 10.
,11. SubtractUne5from line 4. lfzsroor less. enter-O- 11.
j 12. Add lines 10 and 11 ... . . . .. .. . , . . . . . . . . . .... ...... . , . . .. , ..
j ,......................,.. 0...................."....0................... ..,..,....,. 12-
13. Long~tenn capital loss carryover to 2004. Subtract line 12 from line 9. It zero or less, enter ..0.. . , . .. ........,.....,....,. 13.
3,000
1.
;!.
3.
4.
27,426
3,000
30,426
3,000
5.
7.
8.
9.
4,723
3,000
1,723
10M
JUN-23-2004 14:47
P.10
11. Fann 1040
Name
Nancv Ami.a
]
Sale of Home Worksheets
. To figure your adjusted basis, you may use Worlcsh..t 1. Adjusted Basis of Home Sold lOCated in IRS Pub. 523. Please refer to that
publication's Chapter 2 for details.
. If the sale requil'$s the business/rental portion be reported. on Form 4797. only the sale of the home portion is reported on this worksheet.
If you qualify to exclude any of the gain on th. business or rental part. al$O dMde your maximum eXi:::lusion between that part of the
property and the part used as the home. Please see IRS Pub. 523 for details,
Mark; if you havo chosen not to take the exclU$ion and are electrng to pay taX on the entire gain
Par11-G<ilin (or Loss) on Sail..
1. Selling pricaofhome ... _._..".,.... _..........,.,........................,... -..-. ...,....,..,
2. Selling expenses....... _.....,..................,."...,...............'..'.'....... ..... .... ...
3. Subtract: line 2 from line 1 ......."................"..,............,... ............. ............",.,..,....
4. Adjusted basis of home sold .....,.,.............. ......".".,........... ........ ........ ........ .......
5. Subtract line 4 from litI. 3. This is the gain (or loss) on the sale. If this is a loss. stop here ...........,.."..,.....
Part 2-Exctu$ion ilnd Taxable Gain
6. Enter any depreciation claimed on the property for periods after May 6. 1997. If none enter zero.. ... . . . . . . . . . . . . . . .
7. Subtract line 6 from lin. S. (If the result is le$S than zero, enter:l;ero) ........,.....................,......,......
8. If you qualify to exclude gain 01"1 thQ fHille. enter your m.~mlJm exclusion. (See IRS Publication 523)
If you do not qualify to axelude gain, enter-Q-.......,....... ....,...... ,.. __................. ............
9. Entenhe smallerofline 7 orlina 8. This is yourexclu$ion.... ,...................... .............. ...."",..,.
10. Sublnict.line 9 fI'Om Une 5. This 1$ your taxable gain, Report it on Schedule o (FOtM 1040) IS described
under RReporting thQ SaleR in IRS publication 523. If the amount on this Une i& z.ero, do not report the
sale or exclusion on your tax retvrn If the amount on line 6 of this worksheet is more than zero'l
complete line 11 .' ....,.. ,.. ......... ...,... ~......,......... ..,... .;...."............... ..........
11. Entl1l:rthe smaller of line 6 or line 10. Enter this amount on line 12 Of the Unrecaptured Section 125i~ GaIn
Worksheet in the instructions forSc:hltdule D{Form 1040) ...... ....... ............,.........................
Exclusion and T
ble Gain
1419 Holly Pike, Carlisle
.............................................IJI
1. 338,000
2.
3. 338,000
4. 200 ,000
s. 138,000
6. 0
7. 138.000
e. 250,000
9. 138,000
10.
11.
Worksheet 3 Reduced Maximum Exclusion
I Caution: Comnlete oolu....... ,11I:\ "0'" jfvou ilra marrlod and filina e; ioint raturn
I
T
IA}
You
I
IBI .
Your Spouse
1. Maximum amount..... ......,'.,............ ...,............. ................. 1.
2a. Enter the nUll1ber of days that YOl,ll,liSBd the property .$ a main home during the
!';i-yeal' period ending gn thIS date of sale. {If married filing jointly. fill in columns
(A) and (B)) ........................... ...... ............. ..................... ...
b. Enter the number of days that you owned the property during the 5-year
period endIng on the dale of sale. (If married tiling jQintly and one spouse
owned the property longer than the other SP(llJ&Q, both spouses are tl1l.atad
as owning the property for the longer period) ... ........... ................ ....... b.
c. Enter the s;.maAer of line 28 or 2b c.
3. .Have you (or your spouse iffilingj~i~y')'~~~t~d~g~i~'~~~~'~I~"""""""""
of another home during 1M 2-year period ending on the date of tl1ili $;I18'?
No. Skip line 3 and enter the number of days from line 2c on line 4
Yes. Enter the number of days between th& da.te of the most recent sala of
another home 01"1 which you oxcluded gain and thB dal9 of sale of this home
4. Enter the srnaller of line 2cor3............_.............,.,.... ..... ...........
5. Divide the amount on line 4 by 730 days. Enter the result as a decimal (rounded
to at least 3 pisces). But do not enter an amount greater than 1.000 ...........,..,.
6. MultipiythB lamounton line 1 by the dAdmal amount on line 5 .....................
7. Add tI'Ie amounts in columns (A) l!lnd (6) of line 6. This is your reduced
maximum exclusion. Enter II here and on Worksheet 2, line 8
3.
4.
5. -
6.
7.
JUN-23-2004 14:48
Form 1040
Net Earnings from Self-Employment Worl(sheet
Nome
Nancy Amis
farm profit or (I<>as)
Sche<ivle F ........,... ...... d'''''' ................. ........... .....,........
Farm Partnerships-Schedule K.1.1ine 15a ., ,....,...".... _,...... ............ .., ,.
Auto expen5le from farm partnerships....,.. _..,' ...............,......,.... 0'. ......
Deprvoiation & Section 179 from farm pertnal'Shlps............,......_..,...."......,
Depletion fromhlr'r'l'l pattnerships............ .....,.,........."...........'.........
Other expenses from farm partnerships... ...,.. ... __...... ....... .............
Home office expenses from farm partnerships .......... ....... .............. n.._
unreimbufSed partnership expenses from farm partnerships .....,......... _ _. . . . , .. . ..
Farm adjustJnent to SE Income .........,..... .,........... _.............".,.......
Ntt harm profit or (loss) .. Schedule SE line 1
Nonfarm profit or (10$$)
Schedule C.,..,...... ....... ...........,......,....,..."". .................
Nonfarm partnerships - Schedule K~1. line 158 .. .. .. .. .. .. . .. , . .. .. , .. " .. ..
Auto expense from nonfarm partnetShipilli ,......... ........... ...........",.".. ...
Depreciation &sec.tion 179 from nonfannpartnarships,.. ................"..,. ....
o.pletiOn from nonfarm partnerships........... ....."............",.....,.. .......
Othere:lliplllnSU (tom nonfarm partnerships...... ..............,.. ............ .....,.
Home office expen~"from nonfatm pal1nerships.................,..,.,...... ........
Urll''$imbursed partnership expenses fr~m nonfarm partnershIps ..............,...,.""
Employee business expenses from Form 2106 .................. ......,......."....
Nonfarrn$djustmenUo SElncorne "n.... .....,.....,,,,..........,. _.............
Self-employment income repOrted as other income .. ..., __... n........,..............
self-employment Income from contracts and straddles. , . . , . , . . . . . . . . , . . . .
.Mini5ter\oll~e5......"....,....................,.....,..........,..... .
Ministerhousehgld 1I11Iowance.,.......,.................,.........,....".
Net nonfarm profit (II' (lOSS) . Schedule SE line :2
Net profit (loss) from self-employment activities.. Schedule SE line 3
Churc.h @mployea income.. Schedule SE IlI1Ei Sa
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Taxpayer Identification Number
Taxpayer
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Form 1040. Dividend Income
Payer
American Funds
Per..hing, LLC
Total
Ordinary
Dividends
$ 638
789
$. 1,421
Qualified
Dividends
$ 638
772
$ 1,410
Description
Form 1040. Line 11 -Alimonv Received
Taxpayer
Amount
$ 33,097
$ 33,097
Alimony
Total
CaDital Gain Distributions
Payer
American Funds
Total
Spouse
Amount
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Post-May 5
Distribulion
$ 220
$
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capital Gain
Distribution
$. 220
$,
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TOTRL P.12
.
LISTING CONTRACT
EXCLUSIVE RIGHT TO SELL REAL PROPERTY
TOR ERA
EXHIBIT
JI
1(.I'1c.fj
BROKER (Company
LICENSEE(S)
SELLER
PURPOSE OF TDIS CONTRACT Seller is hiring Broker to market Property and to fmd a buyer. Seller will refer all
offers and inquiries to Broker. Seller allows Broker to use print andlor electronilc advertising. Broker is acting as Seller \ 1\'\"\
....... """""" ill '" __NOire ~.&" ) "-l~
BROKER'S FEE No Association ofREALTORS@ has set or rec rom nded ~~roi<er'sfee. Broker and Seller have
negotiated the fee that Seller will pay Broker. The Broker's Fee is ~ of/from the sale price and paid
by Seller. Seller will pay Broker a IIansaction fee of $] 00 at settlement. '
COOPERATION WITH OTHER BROKERS Licensee has explained Brokl:r's company policies about cooperating with
other brokers. Broker and Seller agree that Broker will pay from B~~~ to another broker who procures the buyer, is a
member of a Multiple Listing Service, and who:
A. repres~ the Seller (SUBAGENT). <l. /' 7c
o No AYes If Yes, amount: :;JII.. I, .j 0 of/from the sale price.
a. represents a buyer (BUYER'S AGENT). A Buyer's Agent,~ven om])ensated by Broker or Seller, will represent
the interests of the buyer. -n /
o No rr4.s If Yes, amount: ~ I.:> 70 the !ale price.
C. does not represent either the Seller or/&buyer (TRANSACT~N CI:NSEE).
ONo J:1l(YesIfYes,amount: A /,,:'?,, !aleprice.
PAYMENT OF BROKER'S FEE ,
A. Seller must pay Broker's Fee if Property, or any ownership in erest in it, is sold orexcbanged during the term of
this Contract by Broker, Broker's agents, Seller, or by any otber person or broker, at the listed price or any price
acceptable to Seller.
a. Seller will pay Broker's Fee if negotiations that are pending at the Ending Date of this Contract result in a sale.
C. Seller will pay Broker's Fee after the Ending Date oHhis Contract IF:
(l) A sale occurs within ~ days of the Ending Date, AND 1\ '"
(2) The buyer was shown or negotiated to buy the Property during the ternl of this contract. ~r 't<
Seller will not owe Broker's Fee if tbe Property is listed under an "exc1lusive right to sell contract" witb another .
. broker attbe time of the sale. ~ -\'I....... ",cW--
7. BROKER'S FEE IF SALE DOES NOT OCCUR -~
A. Seller will pay Broker's Fee if a ready, willing, and able buyer is found by Broker or by anyone, includingsenep ~.J
A willing buyer is one who will pay the listed price or more for the Property, or one who has submitted an offer 0+"
accepted by Seller.
B. If the Property or any part of it is taken by any government for public use (Eminent Domain), Seller will pay
Broker M/l~ of/from any money paid by the government.
~' If a buyer~gns an agreement of sale then refuses to buy tbe Property, or if a buyer IS unable to buy It because of fallmg
l\' to do all the . gs required of the buyer in the agreement of sale, Seller willi pay Broker:
\ '" (I) "'lIf/from buyer's deposit monies. OR
(2) the Bro r's ee in Paragraph 4, whichever is less.
8. DUAL AGENCY Seller agrees that Broker may also represent the buyer(s) of the Property. Broker is a DUAL AGENT
when representing both Seller and the buyer in the sale of a property.
DESIGNATED AGENCY
o Not Applicabte.
'\j( Applicable. Broker may designate licensees to represent the separate. interests of the Seller and the buyer. License
I" (identified above) ill: the De!O:imated Alrent who will act exc1m:.ivelv M.the S,el1er Allent. JfPmnertv i~ introduced to the
1.
2.
3.
f4.
5.
6.
9.
LISTED PRICE $ (1 W; tttrrJ
PROPERTY
Address
Municipality (city, bo
County Scho 1 District C!" '^ 9--
Zoning and Present Use _
Identification Number (For example, tax identification number; parcel number; deed book, page, recording date) _
STARTING AND ENDING DATES OF LISTING CONTRACT (also called "Term")
A. No Association ofREALTORS@hassetorrecommended the term of this contract. By law, the length or term ofa
listing contract may not exceed one year. Seller and Broker have discussed and agreed upon the length or term of
this contract.
Starting Date: This Contract starts Wh~bY Seller .And~roker, unl~therwiSe.Ltated here:
Ending Date: This Contract end on r. bA--~:J). 0 0 ;j
B.
C.
13. SE'ITLEMENT & POSSESSION
A. Preferred Settlement Date:
B. Seller will give possession of the Property to Bnyer at settlement or on . . !hi C txact .
C. (1) If the Property, or any part of it, is rented, Seller will give any leases to B~oker ~fore Slg~ - st,:un date and
(2) If any leases are oral, Seller will provide a written su~ of the tenus, Including- amount 0 - ten g,
Tenant's responsibilities. -. . .
(3) - Seller will not enter into or renew any lease during the tenn of this Contr'act except as follows.
14: TITLE
A. At settlement, Seller will give full rights of ownership (fee simple) to a buyer except as follows:
(1) Mineral Rights Agreements
(2) Other
B. Seller has:
~es DNo
Mortgage with
Address
Acct. #
D Yes 0 No Eqnity loan with
Address
Acct. It . Amount of balance $
o - No Seller- authorizes Broker to receive mortgage payoff and/or equity loan -payoff information from
the lender.
Past DUe Taxes
Ju<lgments
Type
Municipal Assessments
Other
Amount $
C. If Seller, at any time on or since January 1, 1998, has been obligated to pay support under an order that is on record in any
Pennsylvania county. list the county and the Domestic Relations Number or Docket Number:
15~:TIPLE LISTING SERVICE (MLS) (Complete if Broker is a member of an MLS)
Broker will use a Multiple Listing Service to advertise the Property to other real estate salespersons, who can tell their -
clients and customers about it. Seller agrees that the MLS. the Broker, and the Licensee are not responsible for mistakes
in the MLS description of the Property.
D Broker will not use a Multiple Listing Service to advertise the Property to other real estate salespersons.
16. PUBUCATION OF SALE PRICE
A. Seller is aware that newspapers may publish the final sale price- after settlement.
-B. S~lIer~'U ow publishing of the sale price after SeUer accepts an agreement of sale. _
o Yes No
17. SIGNS & YS Seller allows (where permitted):
~ Yes 0 No Sale Sign ~es 0 No Sold Sign
o Yes 0 No Key in Office '-Q;'(es 0 No Lock Box
DYes ONo ~
18. ITEMS INCLUDED IN THE P~~CE OF THE PROPERTY
A. Included in the sale and purcllase price are all existing items -permanently installed in the Property, free of liens. inclo
plumbing; heating; ligbting fixtores (including chandeliers and ceiling fans); water treatment systems; pool and spa equipr
garage door openers and transmitters; television antennas; shrubbery, pJsotings, soli unpotted trees; any remaining heatin
cooking fuels stored on the Property at the time of settleme/Jt; wall to wall carpeting; window covering hardware, shade
blinds; built-in air conditioners; bnilt-inappliances. and the range/oven. unless otherwise stated. Also included: _
Phone
Amount .of balance $
Phone
~es
DYes
DYes
o No
OW
Amount owed $
Amount $
DYes
DYes
D No
o No
Amount $ _
B. 0 See attached sheet for additinnal items included in the sale.
19. ITEMS NOT INCLUDED IN THE PRICE OFTHE PROPERTY
The following items are not included in the purchase and price of the Property:
A. tllo...~A c..r, d "'1~""" ,,-^J.. M-+r-L1..........j..vr .
B. Items leased by the Seller
C. D See attached sheet for additional items not inclucL;d in the sale.
20. SELLER WILL REVEAL DEFECTS & ENVlRONMENTALHAZARDS
A. Seller (including Sellers exempt from the Real Estate Seller'. Disclosure Law) will disclose all known trn
and/or enviromnental hazards on a separate disclosure statement. A material defect is a problem or conditi
.. '-. ""..ible danger to those living on the Property, or
......" effect on the value of the Property.
" .. ~~... ......Al....,.. ....".:~__........"....1 ............_..1..
13. SE'ITLEMENT & POSSESSION
A. Preferred Settlement Date:
B. Seller will give possession of the Property to Buyer at settlement or on
C. (I) If the Property, or any part of it, is rented, Seller will give ~y leases to Broker before signing this Connact.
(2) If any leases are oral, Seller will provide a written summary of the terms, :including. amount of rent, ending date, 'and
Tenant's responsibilities. .
(3) , Seller will not enter into or renew any lease during the term of this Contract except as follows:
14: TITLE
A. At settlement, Seller will give full rights of ownership (fee simple) to a bnyer "xcept as follows:
(1) Mineral Rights Agreements
(2) Other
B. Seller has:
"j'(..Yes a No
Mortgage with
Address
Acct. # _
a Yes a No Eqnity loan with
Address Phone
Acct. # Amount of halance $
a 'No Seller' anthorizes Broker to receive mortgage payoff au<Vor equity .1oanpayoff information from
the lender.
Past Due Taxes
Jmlgments
Type
Municipal Assessments
Other
Amount $
C. If Seller, at any time on or since January 1, 1998, has been obligated to pay support under an order that is on record in any
Pennsylvania county, list the county and the Domestic Relations Number or Docket Number:
15~:f1pLE LISTING SERVICE (MLS) (Complete if Broker is a member of an MLS)
Broker will use a Multiple Listing Service to advertise the Properly to other real estate salespersons, who can tell their
clients and customers about it Seller agrees that the MLS, the Broker, and the Licensee are not responsible for mistakes
in the MLS description of ,the Property.
o Broker will not nse a Multiple Listing Service to advertise the Property to other real estate salespersons.
16. PUBUCATION OF SALE PRICE
A. Seller is aware that newspapers may publish the final sale price, after settlement.
. .B. S~ller~i11 ow publishing of the sale price after Seller accepts au agreement of sale. .
a Yes No
17. SIGNS & YS Seller allows (where permitted):
~ Yes a No Sale Sign ~es
a Yes a No Key in Office '-D?fes
DYes 0 No /""'--..
18. ITEMS INCLUDED IN THE PRICE OF THE PROPERTY
A. Included in the sale and purci\;"" price are all existing items .permanently installed in the Property, free of liens, inclmling
plumbing; heating; lighting fixtures (including chandeliers and ceiling fans); water 'treatment systems; pool and spa equiptnent;
garage dour openers and transmitters; television antennas; shrubbery, plantings, anil unpotted trees; any remaining heating and
cooking fuels stored on the Property at the time of settlement; wall to wall carpeting; window covering bardware, shades;imd
blinds; built-in air conditioners; buill-in appliances, and the range/oven, unless otherwise staled. Also included:
Phone
Amount ,of balance $
,/:!es
a Yes
a Yes
a No
a.Nb
Amount owed $
Amount $
a Yes
a Yes
a No
o No
Amount $
o No Sold Sign
o No Lock Box
B. 0 See attached sheet for additional items included in the sale.
19. ITEMS NOT INCLUDED IN THE PRICE OFTHE PROPERTY
The following items are not included in the purchase 'and price of the Property:
A. '<lo..~h"'rl dt~4"'- ~,L ~+r-Lr"-~r,, .'
B. Items leased by the Seller
C. a See attached sheet for additional items not included in the sale.
20. SELLER WILL REVEAL DEFECfS & ENVIRONMENTAL HAZARDS
A. Seller (including Sellr.rs exempt from the Real Estate Seller's Disclosure Law) will disclose all known material defects
andlor environmental hazards on a separate disclosure statement. A material d"fect is a problem or condition that:
(1) is a possible danger to those living on the Property, or
(2) has a significant, adverse effect on the value of the Property.
B. If Seller fail. to tell of known material defects and/or environmental hazards,
I n Seller will not hold Broke. or Licensee responsible in any way;
'.
22. DEPOSIT MpNEY' .
. A. Broker, or any personSe1ler and the buyer name in the agreement of sale, will keep all deposit monies paid by or for the
buyer in an escrow account.. If beld by. Broker, this escrow acc011Dt will be helld as required by real estate licensing laws
and regulations. Seller agrees that the person keeping the deposit monies may wait .to deposit any uncashed check that is .
received as deposit money until Seller bas accepted an offer.
B. If Seller joins Broker or Licensee in a lawsuit for the retorn of deposit monies, Seller will pay Broker's and Licensee's
attorneys' fees and costs. .
23. RECOVERY FUND .Pennsylvania has a Real Estate RecoveryP1ind (the Fund) to repay any person who has received a final
court ruling (civil judgment) against a Pennsylvania real estate licensee because of fraud, misrepresentation, or dereit in a real
estate transaction. The Food repays persons who have not been able to collect the judgment after trying all lawful ways to do
so. For complete details about the Fund, call (717) 783,3658, or (800) 822-2113 (within Pennsylvania) and (717)783-4854
(outside Pennsylvania).
24. TRANSFER OF TIllS CONTRACT
. A. Broker will notify Seller immediately in writing if Broker transfers this Conusct to another broker when:
(I) Broker stops doing business, OR
(2) Broker forms a new real estate business, OR
(3) Broker joins his business with another.
Seller agrees that Broker may transfer tbis Contract to another broker. Btoket will notify Seller innnediately in writing.
when a transfer occurs. or Broker will lose the right to transfer this Conuact. Seller will follow all requirements of this .
Contract with the new broker.
B. Should Seller give or transfer the Property, or an ownersbip interest in it, to anyone during the term of this Contract, all
owners will follow the requirements of this Contract. .
25. NOTICE TO P"tRSONS OFFERlNG TO SELL OR RENT HOUSlNG IN PENNSYLVANIA Federal and state laws
make it illegal for a seller, a broker, or anyone to use RACE, COLOR, RELIGION or RF.LIGIOUS CREED, SEX, DISABI.
. LITY (physical or menial), FAMILIAL STATUS (children under 18 years of age), AGE (40 or older), NATIONAL ORIGIN,
USE OR HANDLINGITRAINING OF SUPPORT OR GUIDE ANIMALS, or the FACT OF RELA:nONSHIP OR ASSOCI:
ATION TO AN INDIVIDUAL KNOWN TO HAVE A DISABILITY as reasons for refusing to sell, show, or rent properties,
loan money, or set deposit amounts, or as reasons for any decision relating to the sroe of property.
26. NO OTIIER CONTRACTS Seller will not enter into another listing agreement with another broker that begins before the
Ending Date of this Contract.
27. ADDITIONAL OFFERS ONCE SELLER ENTERS INTO AN AGREEMENT OF SALE, BROKER IS NOT REQUIRED .
TO. PRESENT OTHER OFFERS.
28. ENTIRE CONTRACT This Contract is the entire agreement between Broker and Seller. Any verbal or written agreements
that were made before are not a part of this Contract.
29. CHANGES TO TIllS CONTRACT All changes to this contract must be in writing and signed by Broker and Seller.
30. SPECIAL INSTRUCTIONS The Office of the Attorney General has not pre-approved any special c"nditions or additional
terms added by any parties, Any special conditions or additional terms in the Contract must comply with the Pennsylvania
Plain Language Consumer Contract Act.
ADDIDONAL INFORMATION (OPTIONAL)
31. . TAXES, UTILITIES, & ASSOCIATION FEES
A. At settlement, Seller will pay one-half of the total Real Estate Transfer Taxes, unless otherwise stated here:
B. Real Estate Property Tax Assessment $
WagelIncome Tn
C. Estimated Utilities (trash, water, sewer, electric, gas, oil. etc.)
Yearly Taxes .$
Per .Capita Tax $
D. Association Fees $ Inclnde:
E. Other
32. BUYER FINANClNG Seller will accept the following arrangements for buyer to pay for the Property:
. XCash "
. ~uyer will apply for a mortgage. 1:ype(s) of mortgages acceptable to Seller are:
~es 0 No Conventional 0 Yes 'isI:1l0 FHA
. 0 Yes ~o VA 0 Yes 'DNo
tI' ~eIlet's help to buyer (if any): ~.frv1.51 . ,
. Seller has read the Consumer Notice as adopted,by the State Real Estate Commission at 49 Pa. Code 135.336.
. All Sellers must sign this Contract.
IN THE COURT OF COMMON PLEAS
CUMBERLAND COUNTY, PENNSYLVANIA
NANCY A. REED,
PLAINTIFF
VS
NO. 2000-2123
MICHAEL D. REED,
DEFENDANT
DEPOSITION OF, MARY FITTS
TAKEN BY,
DEFENDANT
BEFORE,
ANTHONY J. BALSHY, REPORTER
NOTARY PUBLIC
DATE,
PLACE:
NOVEMBER 17, 2004, 1,2S P.M.
JAMES, SMITH,
DIETTERICK & CONNELLY
134 SIPE AVENUE
HUMMELSTOWN, PENNSYLVANIA
APPEARANCES,
SAMUEL L. ANDES, ESQUIRE
FOR - PLAINTIFF
JAMES, SMITH, DIETTERICK & CONNELLY, LLP
BY: JOHN J. CONNELLY, JR., ESQUIRE
FOR - DEFENDANT
Geiger & Loria Reporting Service - 800-222-4577
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TABLE OF CONTENTS
WITNESS
DIRECT
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FOR DEFENDANT
Mary Fitts
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1 MARY FITTS, called as a witness, being
2 sworn, testified as follows:
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DIRECT EXAMINAT:ON
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BY MR. CONNELLY:
Q State your name for the record, please.
A Mary B. Fitts, F-I-T-T-S.
Q How are you employed, Mary?
A I'm a real estate salesperson.
Q And who is your employer?
A Jack Gaughen Realtor, Carlisle office.
Q How long have you been in the business?
A 32 years.
Q And I believe you actually sold the
Reeds this property located at 100 Mooreland Avenue,
Carlisle, is that correct?
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A
Yes, I did.
Q 1997 I believe?
A Maybe. I have a copy of the deed when
they bought it. Might have been '96 -- I don't know
when it was.
Q All right. It's not critical.
Everybody says '97. That's your recollection as
well.
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I just thought
A
I could find the deed.
2 I saw the deed and it was '96, but I am sure it was
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'97.
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Q Can you tell me what your familiarity
is with the market in this area, Old Mooreland and
Carlisle market generally?
A Well, I think it's my specialty. I
live in the historic district in downtown Carlisle,
and I work mostly with Dickinson College professors
and other people like that that want to live in the
downtown area, and I have thought it made it my
specialty.
Q When did you first begin showing Bob
Stout and his wife homes in Carlisle including the
Old Mooreland area? Do you recall that?
A Well, there were very slim pickings,
and the first time I ever met them I had a house
listed on Devonshire Drive. I don't even know if
they remember having met me at Devonshire Drive. The
house was less than 200,000. I forget what the
asking price was. Maybe 185. I don't remember.
189, 190. And they were a very nice couple and I,
you know, chatted with them extensively that day and
they wanted a house in the Old Mooreland area, and I
had it in my head that that was the price they wanted
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to pay, you know, like less than 200,000, and, of
course, properties over there are hard to find. They
are very special. They don't come up very often.
And so I never called them back because nothing
really was ever on the market, and finally something
came on the market, and I don't remember what it was.
And I called the Stouts on the phone. I had their
card at least a year or more, and I called them on
the phone and I said and it may be the house on
East Ridge Street that had been old Judge Jacobs'
house. That house was on the market for sale, and so
I called them to maybe talk about that house or maybe
there was something else I called them on. And they
said -- maybe it must have been that house because
they said we have already seen that house. We have
made an offer on that house, and we have gone
absolutely as high as we can go, 325,000 or something
they said.
Q How long was that before they
ultimately looked at the 100 Mooreland property?
A At least a year. At least I would
think at least a year. I don't really know the date
of that. I didn't show them the house because she
told me that they had already seen that house or
maybe I called them on some other house. It
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certainly wasn't on this house because this house
wasn't for sale. And I saw a little light went on in
my brain that they were willing to pay more than
200,000, so I will just put that back here in my
brain and they really want a special house. That was
when it first become obvious to me that they could
afford something more than 190. I mean I honestly
did not know. I never question people much on their
price bracket or anything. I just, you know, I'm not
real nosy like that. So when I figured out that they
could afford to pay a lot, I felt, well, file that
back in the brain because this is the kind of house
that I like to list, the kind of house I like to
sell.
Q How long had you been discussing the
possibility that Nancy would be selling the Mooreland
Avenue property?
A Well, I can't say how long I had been
discussing it because I don't -- you know, I was a
friend of Nancy's. I was a friend of Michael's, and
I knew that Nancy actually had said at one point that
she wanted to keep the house. So I wasn't sure that
that house was ever going to come up for sale.
Q When did you come to the realization
that Nancy would be interested in selling that
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property?
A Well, what she said to me was, and I
don't even know if I saw her at church. I don't
think I really called her about that house, but we
would run into each other at church and things, and
she said we are working toward a settlement, and it
seems like I'm going to sell the house after all, and
it was very exciting. She was going to go to
Baltimore to go to school.
Q Let's go back in time. Mr. Stout
testified that his recollection was that you
contacted him or he spoke to you -- that wasn't
clear -- roughly eight to 10 months prior to May of
2003 indicating that there might be a property coming
on the market, the 100 Mooreland?
A Right.
Q So at least at that point, you had some
sense of a possibility the house would sell?
A I had some sense of a possibility that
it would sell, but Nancy had also told me over the
two or three years or however long this took, this
divorce -- I don't remember -- that she wanted to
keep the house. If she could keep the house, she was
going to try to keep the house, and then I guess she
told me that they were working toward a settlement
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and that they were going to sell the house. So I
told the Stouts, but I didn't tell them anything
about a price because I said I don't know when this
is ever going to happen, if ever.
Q Let's get to the issue of price. When
did you discuss with Nancy what you thought the price
range would be?
A When it came time, I said, Nancy, when
you get the deed in your name and we know that all of
this stuff that y'all have been working or for years
has come down to the settlement and you have the
deed, you call me. When you get the deed, you call
me because I cannot possibly tell you what the price
is going to be until this all plays out.
Q Let's go back.
A To the time that it closes.
Q You had no idea when Nancy first talked
to you even if it was eight months prior to this May
date what the price would be?
A I don't know how long this went on.
Way, way back when Nancy was talking about a divorce,
she said to me I'm going to need as much money as I
can possibly get for this house, and she said I'm
hoping that I can get 250 or something like that she
said to me, and I said I think you can, Nancy. I
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1 think you can.
2 Q Did you ever tell her she could get
3 substantially more than 250?
4 A No, because that market was changing so
5 much in Carlisle. You have no idea. Nobody could
6 keep up with the inflation in that market. And
7 that's why I finally started saying to Nancy, look,
8 Nancy. When you get the deed in your name and you're
9 ready to sell this house, I will tell you at that
10 time what I think the house is worth.
11 Q Do you recall when she first contacted
12 you and indicated to you that she had a deed in hand?
13 A Well, I guess it was sometime around
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this listing date because I said I'm not doing
anything till you get the deed.
Q Did she show you the deed?
A No.
Q She just told you she had it?
A She told me she had it. I kept
stressing to her don't even talk to me until you get
the deed because this is somethin9 that you're
working out and if you're selling the house, then
when you get the deed, then you're the person I'm
dealing with.
Q
The bottom line here, Mary, is that
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when did the first time Nancy hear about a $345,000
list price from you?
A Well, I guess when I listed this
property.
Q So you would have handed her this
listing agreement which I'll show you marked
Defendant's Exhibit 4 with this price in it never
having said a word to her about the value prior to
that?
A Dh, no. I'm sure we sat down that day
and talked about the price.
Q The day you gave her this contract?
A Yes. I'm sure that we talked about it
at that time.
Q Would you recall the circumstances? Do
you recall having a meeting with her and filling this
out while she was present? If you recall.
A I don't think so. I mean I don't think
that I recall whether I sat down with her or not. I
knew by then that her friend and attorney Paula Light
was involved.
Q Did you talk to Paula on the phone?
A No, I did not.
Q The only person you dealt with was
Nancy on this?
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Yes.
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Q And do you recall how long it was
between when you gave her this document with the
three percent commission in and "hen it was initialed
and given back to you at 1.5?
A Must have been pretty quick, but I
don't know. I can't tell you. I don't know. She
had Paula look at this. This is, you know, all this
is my handwriting, and then she went to see Paula and
Paula told her that she couldn't really afford to
have a realtor, you know, with that much commission
being paid, and so forth, that she needed all the
money she could get and so Paula in Paula's own
handwriting Paula changed all these commissions, and
so forth.
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Whose writing is it on the bottom that
Q
if you sell?
A
Mine.
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Q That's yours on the bottom of page one
about the 2.5 percent commission?
A Yes.
Q And, again, you're saying that you
never had any discussions about list price? How did
you arrive at $345,OOO?
A Well, frankly I thought frankly that
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the Stouts would pay that because they really wanted
that kind of house. That's what I thought. After I
realized that they had been willing to pay 325 for
Judge Jacobs' house, a little light went on in my
brain that said to myself the next wonderful house
that comes on the market in the historic district or
the Old Mooreland area, I now realize these folks can
pay 325.
Q What did you start out talking about
with Nancy about a price for this? Do you remember?
A Well, we really -- I have to keep
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telling you we did not discuss price after she was
first going to get this divorce when I first kind of
knew about it. She was concerned about, you know,
whether or not did I think she could possibly get 250
or 275, and I said I think so, Nancy, because by then
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the market was beginning to go up. I said I think
so, and that's it.
Q Any idea when that conversation was?
A Ages before I listed it, but prices
were going up in Carlisle.
Q What does ages mean? A year? Two
years? Six months?
A I don't know how long their divorce
went on, but I would say from the moment that I knew
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they were talking divorce and Nancy said I would like
to stay in the house until the boys are grown or gone
or something like that, and I don't know how long it
was.
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Q Let's go back to May of 2003. When did
you first discuss a sale price for this house with
her ballpark? Within a week? Two? Three?
A With Nancy?
MR. ANDES: She's answered that.
A Yes. I said --
MR. CONNELLY: She hasn't. She's all
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over the lot.
A
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I'm not allover the lot.
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discussed I said to Nancy, Nancy, when you get the
deed in your hand, then we know that I am dealing
with you to sell this house.
BY MR. CONNELLY:
Q Stop there. She got the deed and
called you?
A She called me.
Q When she called you saying I have the
deed, you don't recall when that was, but you know
that's when she called?
A Yes, I guess so. I guess that's when
she got the deed. She said she got the deed.
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Q What price did you discuss with her
when she called and said I have the deed?
A I said, Nancy, you're going to be very
shocked to find out that this Carlisle market has
been inflating. It was going like 10,000 a month,
and I said this market has inflated to the point
where I honestly think we can ask almost up to 350
and at that point I was thinking to myself and there
go the Stouts as my possible buyer because they had
already told me they couldn't possibly go one penny
over 325, that that was there, but I thought I am
representing Nancy. It's a very special house. The
market's been inflating at this huge wild rate. I
think we can go as high as 350. I'd like to go a
little bit less, Nancy. How about 345.
Q And she said okay?
A She said okay.
Q What was her reaction when you told her
350, then 345? Do you recall?
A She was happy. Who wouldn't be? I
think she was quite thrilled, and I think she had
enough faith in me to think that I was going to pull
it off because it is my market, and I don't do, you
know, frankly my office says where is your market
analysis. Where is your appraisal. I said I don't
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do them. It's right up here. I know what the market
will bear in Carlisle.
Q You then prepared the listing contract,
gave it to her?
A Right.
Q She spoke to her attorney?
A Yes.
Q The adjustments were made. She
initialed them and the deal was done?
A That's right.
Q How many people looked at the house?
A Well, I am sure that Dr. Bowers and his
wife, Ann, were interested in the house. I called
them, and she looked, and I think she was horrified
at the price I had put on the house. I think she was
totally shocked.
Q Did they make an offer?
A No. She said will 300 do it, Mary, and
I said I don't think so. If you want to write it up,
you can. I will be happy to write it up. But I
don't think it will do. I mean people that are not
in that market in Carlisle like I am in that market
don't know how fast stuff's going up. You got to be
right there to know, and she couldn't believe it.
She had deep regrets. In fact, the poor woman just
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bought a new house this fall because she never got a
house in Old Mooreland. She was always a day late
and a dollar short.
Q Who else looked at it?
A I don't know. I don't recall if
anybody else looked at it.
Q Did you have any other offers?
A No, nothing but the verbal offer from
Ann Bowers.
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Q At 300?
A Yes. And I don't recall. It seems
like I showed it to someone else, but I can't
remember who. I guess I could look on my day timers.
I don't know if Nancy remembers.
Q When did you first speak to the Stouts
about the price?
A I don't think I spoke to them -- I
can't say what I said about the price. I told them
that the price was not established, that I would not
be able to tell them what the price was, that there
was a divorce pending, and that Nancy was expecting
to get the property as part of the divorce
settlement. And that when that happened, I would let
them know, and they said to me, well, we're really
just sick and tired of waiting here, and if we
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don't -- if something good doesn't happen soon,
meaning not only with Nancy's house, I guess, but any
other house in Old Mooreland, they said we are going
to do a huge renovation to our own home and we are
going to stay where we are.
Q Before you listed this property, I
assume you walked through it and looked at it?
A Oh, yes.
Q Do you recall when that was prior to
preparing this document?
A I can't say.
Q Week? Two? Three?
times have you been in the house?
that.
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A month? How many
Let's ask you
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Q How many times had you been in the
house in the preceding six months let's say in the
year 2003 or 2002?
A Well, let's see. I think when Nancy
got the deed to the house I walked through it, and
she had a very unsatisfactory tenant living in the
house is what I recall. This is a lady.
Q Did you meet the tenant?
A No. She wasn't home, but I mean -- and
I had never been in the house -- I don't know how
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long that lady lived with Nancy, but I never been in
the house when that lady was living there until I
went through to list it. So I don't know. I mean I
don't know if the lady was there six months or a
year.
Q But you hadn't been in it since that
woman was there, and when you went, she was living
there but you didn't meet her?
A Yes. She left for the day or left for
the hour to, you know, give us some space so I could
actually walk through the house and see what had
happened, what Nancy had done to the house.
MR. CONNELLY: I don't have any other
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questions.
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MR. ANDES:
I don't have any questions.
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Thank you very much.
(The deposition was concluded at 1:45
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4 25
COUNTY OF LEBANON
ss.
COMMONWEALTH OF PENNSYLVANIA
I, Anthony J. Balshy, Reporter-Notary
Public, authorized to administer oaths within and for
the Commonwealth of Pennsylvania and take depositions
in the trial of causes, do hereby certify that the
foregoing is the testimony of Mary Fitts.
I further certify that before the
taking of said deposition, the witness was duly
sworn; that the questions and answers were taken down
stenographically by the said Anthony J. Balshy, a
Reporter-Notary Public, approved and agreed to, and
afterwards reduced to typewriting under the direction
of the said Reporter.
I further certify that the proceedings
and evidence are contained fully and accurately in
the notes taken by me on the within deposition, and
that this copy is a correct transcript of the same.
In
I have hereunto
subscribed my hand this
NOTARIAl SEAl
ANTHONY J IIAlSHY
Notary PublIC
FW.MVlIA BOROUGH. LEBANON COUNTY
My Camrl\tll1on EJ<pIrea OCt 9. 2007