ATTACHMENT_ONE_-_SOW.pdf

Scope of Work for Title Search and Closing Services for NRCS Florida Agricultural Conservation Easement Programs

A. OBJECTIVE

The objective of this contract is to obtain title search, preliminary title commitment, final title policy, and closing services for acquisitions of conservation easements in the State of Florida on behalf of the United States of America, acting by and through the Natural Resources Conservation Service (NRCS), U.S. Department of Agriculture (USDA), pursuant to Title II of the Agricultural Act of 2014 (Public Law 113-79).

B. BACKGROUND

The Agricultural Conservation Easement Programs (ACEP) authorizes the acquisition of easement rights from willing landowners. NRCS is the lead USDA agency that is charged with administering those programs.

1. SCOPE OF SERVICES

The objective of this Firm Fixed Priced Contract is to obtain title search and closing services for acquisition of property easements throughout the State of Florida in support of the National Resource Conservation Service (NRCS) Agricultural Conservation Easement Programs, including obtaining title insurance from a title company approved/certified in the State of Florida by the United States Attorney General. The Title Insurance Premium Rate amounts MUST be included in your quote for the respective types of title insurance contracts and policies according to the rules promulgated the Florida Department of Insurance in the Florida Administrative Code, Chapter 4-186 Title Insurance and Section 627.7825, Florida Statutes for 1-4 Residential. Your quote MUST also include the Documentary Stamp Tax also mandated by Florida State Law. The Title Insurance Premium Rates can be estimated by clicking on the following link.

- http://www.theclosingcompany.net/title-insurance-calculator-florida.asp

The Contractor will perform the same closing services as in a commercial transaction, including the following:

• Obtaining and updating chain(s) of title, including copies of all instruments that created rights, interests, or encumbrances on the property

• Providing preliminary title commitments and issuing final title insurance policies

• Providing easement boundary and ingress and egress descriptions

• Working with landowners to clear exceptions on title to the property

• Obtaining signatures on Warranty Easement Deeds

• Any necessary curative instruments to assure merchantable insurable title in the name of the United States of America to the wetland easement http://www.theclosingcompany.net/title-insurance-calculator-florida.asp

• Disbursement of funds at closing

• Closing Protection Letter in favor of the United States of America

• Other services, as necessary, to finalize easement transactions.

The closing services will be performed in the county courthouse of the county in which the ACEP easement is located, unless the Contractor, NRCS and the landowner mutually agree to a different location.

2. STANDARDS AND RESPONSIBILITIES

The Contractor is responsible for having current knowledge of the requirements of Florida state law in connection with closing real estate transactions and title clearance. The title insurance company must be on the United States Attorney General's list of approved companies and must comply with all state laws, including title insurance reserves requirements. The Contractor must be an approved agent licensed to do title insurance business in the State of Florida. The title insurance company must be approved by the State Insurance Commissioner.

The Contractor will provide evidence of liability insurance coverage for errors and omissions in the amount of at least $1,000,000 and fidelity coverage of at least $500,000 on each individual who will have access to the ACEP funds or provide an indemnification agreement from the title insurance for which the Contractor will close the transaction(s) satisfactory to the NRCS providing for reimbursement to NRCS for any loss caused by fraud or dishonesty or failure by the attorneys, agents, or employees of the Contractor to comply with NRCS' written closing instructions. The ALTA Closing Protection Letter Revised 3/27/87 is satisfactory to meet this condition of responsibility. Evidence of liability must be provided prior to contract.

3. DESCRIPTION OF SERVICES

A Class D-Boundary survey will be provided to the contractor within sixty-five (65) business days of contract. Once the survey is received, the Contractor must obtain the Commitment for Title Insurance. The Contractor shall provide title insurance covering both the easement area and the access area to and from the easement and must commit to issuing the final title policy to the "United States of America, by and through the Secretary of Agriculture" on the ALTA U.S. Policy Form 9/28/91(revised 12/2/12) (form included as Attachment 2 to this solicitation). The name of the insured on the policy should read: United States of America

The title search will be for a sufficient period of time for the title company to insure the title without objectionable exceptions, and will determine all owners of record, outstanding mortgages, liens, judgments, or pending suits, outstanding tax claims, easements or rights of ways of any type, whether oil, gas, and mineral interests have been severed, and any other exceptions that may cloud the title of the easement to be purchased. Title search services and title commitment must be provided within 30 days after receipt of order hereinafter referred to as After Receipt of Order. The contractor will be provided with the name and address of the landowner, a copy of the vesting deed, a location map of proposed easement area, and access.

The Contractor will be required to obtain the execution and recordation, as needed, of such items as Warranty Easement Deed, other deeds, releases, full or partial satisfactions of mortgages, subordinations, lien waivers, affidavits of materialmen liens, child support, and various types of releases of encumbrances on the property.

Upon completion, the Contractor will forward the following documents to the Contracting Officer no later than 10 days from receipt of the boundary survey:

• Warranty Easement Deed

• Subordination Agreements, if applicable

• Survey, original and one copy for local District Conservationist (DC)

• Title Commitment, original and one copy for DC

• Other documentation as required.

The Contractor will also include a copy of the invoice for the title insurance premium.

Upon receipt of the required documents, NRCS will obtain from its Office of General Counsel (OGC) a Preliminary Title Opinion (PTO) which will set out any exceptions to the title. OGC will determine which exceptions are acceptable and which exceptions must be cured.

NRCS will send closing instructions with the PTO to the contractor. Note, Closing Title Attorney is not required to be present at time of closing within the State of Florida. The contractor is required to close within 30 business days after receipt of the PTO and closing instructions letter from NRCS, and the clearance of any title issues required by the PTO. The closing services will be performed in the town office of the town in which the easement is located, unless the contractor and landowner agree to a different location. The contractor will not close any transaction or record deeds or other instruments prior to receiving the PTO and closing instructions letter.

At this time, NRCS will process the landowner's easement payment along with payment for the title insurance expense and documentary stamp tax expense.

Upon receipt of the PTO, the Contractor will be required to close the transaction in the county courthouse in which the property is located or at a place mutually satisfactory to the Contractor and landowner within ten (10) business days of receipt of payments. The Contractor will not close any transaction until funds are received. The Contractor will close the transaction, record the deeds and other instruments as necessary and ensure that the following have occurred:

• No new encumbrances have been recorded against the subject property since the date of the title commitment.

• Receipt, execution, and recordation of the Warranty Easement Deed from the landowner.

• Delivery of the policy of title insurance referred to below.

• All exceptions required to be removed, released, subordinated, waived or otherwise handled as set forth in the Preliminary Title Opinion from the Office of the General Counsel have been completed and the applicable clearance documents recorded. Complete the closing checklist from OGC.

• All taxes, assessments, etc., are paid to the date that the Warranty Easement

Deed is recorded. One specific tax associated with this contract is the Documentary Stamp Tax required when recording the easement. This amount is a State Regulated Tax so prices are fixed and will not vary. Additional detail supporting this tax is provided below.

(Chapter 201, Florida Statutes)

Documentary stamp tax is levied at the rate of $.70 per $100 (or portion thereof) on documents that transfer interest in Florida real property, such as warranty deeds and quit claim deeds. (The Miami-Dade County rate is $.60 on all documents plus $.45 surtax on documents transferring anything other than a single-family residence). This tax is usually paid to the Clerk of Court when the document is recorded. The Clerks of Court send the money to the Department of Revenue and the Department distributes the funds according to law.

Documentary Stamp Tax at $.70 per $100.00, rounded up, based on the total purchase price. (Example: $50,000.00 X .007($350.00)

• A Final Title Policy has been issued in an insured amount which is the same as the consideration paid for the easement. The Final Title Policy shall be accomplished on ALTA U.S. Policy Form 9/28/91(revised 12/2/12) and will be issued by a title insurance company that is on the Attorney General's approved list.

• Comply with any listed title commitment or binder requirements.

• Prepare/submit IRS Form 1099-S for all easement payments.

• Closing Protection Letter in favor of the United States of America

If any new encumbrances have been recorded against the subject property since the date of the title commitment, the Contractor will immediately notify the Contracting Officer (CO) and will not proceed until further instructions are received.

Upon completion of the closing, the Contractor will send to NRCS the ALTA U.S.

Policy Form 9/28/91(revised 12/2/12), naming the United States of America as the insured, in the amount of the purchase price as of the date and time of recording of the Warranty Easement Deed to the United States of America. The policy of title insurance will be free and clear of any and all encumbrances (exceptions) to the title except those shown as acceptable in the OGC Preliminary Opinion. At the time of closing, the Contractor will provide a Settlement Statement to the landowner, in the form similar to HUD-1 (8-87) RESPA, HB 4305.2.

The Contractor will return the package to the Contracting Officer within thirty (30) business days following closing. The package shall include the following:

1. The invoice covering the agreed upon closing cost.

2. Policy of title insurance (original and one copy).

3. The original recorded copy and one copy of the Warranty Easement Deed to the United States of America.

4. The original and (one copy to landowner) of the settlement statement.

5. Certified copies of any title clearance documents showing the recordation date.

4. DELIVERY

Title Search – 30 days after ARO Title Update – 30 days after notice to proceed from NRCS Closing – 30 days after notice to proceed from NRCS to include receipt of final deliverables.

5. PAYMENTS

Payments will be made by electronic funds transfer (EFT) using IPP (https://www.ipp.fms.treas.gov/). Contractor must register and obtain a registration in contract to get paid.

6. CONFLICT OF INTEREST

A contractor will not close on an easement purchase for a spouse, children, partners or business associates, nor have a financial interest in the real estate to be covered by the proposed easement. The contractor is responsible for notifying the Contracting Officer as soon as a potential conflict of interest is identified.

https://www.ipp.fms.treas.gov/

7. AUTHORITY

Only the NRCS Contracting Officer may authorize a modification to this contract. Any questions may be directed to the Contracting Officer.

8. NONDISCLOSURE

Work performance required by this scope of work will involve access to potentially sensitive information about governmental and landowner issues. All contractor personnel must comply with the terms of the AGAR 452.224-70, "Confidentiality of Information," as well as provisions of the Privacy Act of 1974, 5 U.S.C. Section 552a.

Additionally, the contractor's employees must comply with the requirement for privacy of personal information relating to natural resources conservation programs, in accordance with Section 1244 of Title II of the Farm Security and Rural Investment Act of 2002 (Public Law 107-171).

9. CIVIL RIGHTS AND PROGRAM DELIVERY

By signing this agreement, the contractor assures the Department of Agriculture that the program activities provided for under this agreement will be conducted in compliance with all applicable Federal civil rights laws, rules, regulations, and polices.

10. PRICING REQUIREMETNS IN EACH QUOTE RECEIVED

Standard Form 1449 is not required under FAR Part 12.603 (b) Streamlined Solicitation for Commercial Items. Please provide quotes matching line items provided below on any form of your choice.

- Title Search

- Title Update

- Closing Services

- Documentary Stamp Tax (mandated and controlled by the State of Florida) –

This amount is fixed and therefore will not vary.

- Title Insurance Premium (mandated and controlled by the State of Florida) –

This amount is fixed and therefore will not vary.