S01 ATTACHMENT C NRCS CONTRACTS FOR SUBMISSIONS OF DELIVERABLES.pdf

Natural Resources Conservation Service

SAMPLE ACEP-WRE CLOSING INSTRUCTIONS

Date:

[CLOSING AGENT NAME]

[Closing Agent Address]

Re: Closing Instructions for the Acquisition of a Wetland Reserve Easement Through the Agricultural Conservation Easement Program (ACEP-WRE)

Closing Agent’s File Number:________________________________________ Landowner Name:_________________________________________________

NEST Agreement #:________________________________________________ Brief Description of Property:_________________________________________

Dear [Name of closing agent]:

This letter will constitute the closing instructions of the United States of America for a transaction whereby the United States will receive title by warranty easement deed from ____________________________________________________________(Name of landowners) for certain real property located in ___________________________________(County and State) (the “subject property”) described in a title commitment and binder from ___________________ __________________________ (Name of title company), dated _________________________, for a purchase price of $ _______________________________________, the full consideration amount as stated on the “ACEP-WRE Warranty Easement Deed.”

By countersigning the document below, you are certifying that as the closing agent you meet the requirements set forth herein, which ensure that the Federal funds received are used to assist in purchasing the subject easement and are handled in a manner that protects the interests of the United States of America.

You are responsible for having up-to-date knowledge of the requirements of State law in connection with closing real estate transactions and title clearance. The title insurance company and its issuing agents must comply with all State laws, including title insurance reserve requirements. You must be an approved agent licensed to engage in title insurance business in the State. The title insurance company must be approved by the State Insurance Commissioner.

You must obtain a valid Dun and Bradstreet Data Universal Numbering System (DUNS) number and maintain active registration in the System for Award Management (SAM) or successor registry for the duration of any contracts or agreements to provide closing services to the Natural Resources Conservation Service (NRCS).

You will provide evidence of liability insurance coverage in the amount equal to at least the amount of the Federal funds for the easement satisfactory to the NRCS, acting on behalf of the Commodity Credit Corporation, providing for reimbursement to NRCS for any loss of Federal funds caused by errors, omissions, fraud, dishonesty, negligence, or failure by the attorneys, agents, or [CLOSING AGENT NAME] employees to comply with these written closing instructions. The American Land Title Association (ALTA) closing protection letter revised 4/2/2014 is satisfactory to meet this condition of responsibility. Evidence of liability insurance will be provided to NRCS prior to the transfer of Federal funds into escrow.

[CLOSING AGENT NAME] will not close on an easement purchase for their spouse, children, partners, or business associates, and must not have a financial interest in the real estate to be covered by the proposed easement.

The parties to this transaction are as follows:

1. United States of America Natural Resources Conservation Service [Address]

2. [Landowner’s name, address, and phone number]

Enclosed are the following:

1. Unexecuted ACEP-WRE Warranty Easement Deed with exhibits and a copy for the landowner

2. Unexecuted copy of subordination agreement and limited lien waiver

3. Copy of the survey of the easement area and ingress and egress to the easement area

4. Requirements from the Preliminary Title Opinion (PTO) from the USDA Office of the General Counsel (OGC)

5. ALTA closing protection letter

6. Other documents needed by closing agent to close

The [CLOSING AGENT NAME] will establish an escrow account in an FDIC-insured account for the payment of the easement associated with these closing instructions and include the escrow account information in their SAM registration. The Federal funds for easement acquisition will be sent to the account specified by [CLOSING AGENT NAME] in the SAM registration from the U.S. Treasury by electronic fund transfer (EFT) prior to closing and payable to the landowners in the amount of

[CLOSING AGENT NAME] is authorized and instructed to close and record within 30 calendar days of receipt of the Federal funds, and will—

1. Immediately prior to closing, examine the real estate records covering the time from the effective date of the title commitment to the date of closing to determine that no new encumbrances have been recorded against the subject property, no adverse change in title has occurred and that there are no intervening matters affecting the title that might result in a new title exception on the policy. If any such changes or matters are discovered, notify the [NRCS Easement POC] immediately and do not proceed until further instructions are received from NRCS. It is the landowner’s responsibility to provide acceptable and sufficient title to the United States and bear the costs associated with providing acceptable and sufficient title.

2. Obtain the properly executed ACEP-WRE Warranty Easement Deed from the landowner and NRCS.

3. Obtain and record the properly executed curative documents for any items required to be removed, released, subordinated, waived, or otherwise handled as required by the commitment (including any pro forma policies or markups to the commitment), NRCS closing instructions, and OGC title opinion requirements. Provide subordination agreements, satisfactions, releases, partial releases, and other title curative documents to be signed at closing to NRCS for review and approval at least 3 business days prior to closing.

4. All taxes, homeowners’ assessments, etc., are paid to the date the ACEP-WRE Warranty Easement Deed is recorded.

5. Comply with any listed title commitment and binder requirements.

6. Ensure the ACEP-WRE Warranty Easement Deed, exhibits, and any necessary title curative documents are recorded within 5 business days of execution.

7. Secure the policy of title insurance referred to below.

8. Ensure the escrow account is fully insured.

9. Complete the SF-1099 Internal Revenue Service (IRS) tax reporting form for the full easement compensation amount, as identified in the ACEP-WRE Warranty Easement Deed.

10. Return the easement funds and any accrued interest in accordance with NRCS instructions if the easement is not closed within 30 calendar days of receipt of Federal funds into the escrow account. Contact the [NRCS Easement POC] for specific instructions.

Immediately following closing, please issue a policy of title insurance on American Land Title Association (ALTA) U.S. Policy Form 9-28-91(Revised 12/3/2012) with the “United States of America” named as the insured party in the full amount of the easement compensation amount as identified on the Warranty Easement Deed as of the time and date of the recording of the ACEP- WRE Warranty Easement Deed. This 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 NRCS closing instructions and OGC title opinion requirements.

[CLOSING AGENT NAME] will deliver the following to the [NRCS Easement POC] within 5 business days of receipt of recorded documents from the local land records office:

1. The invoice to the Invoice Processing Platform (IPP) covering the agreed-upon closing costs incurred for services provided at www.ipp.gov.

2. Policy of title insurance (original and one copy) on ALTA U.S. Policy Form 9-28-91 (Revised 12/3/2012)

3. Recorder’s certified copy of the ACEP-WRE Warranty Easement Deed and a recording receipt

4. Recorder’s certified copies of any curative documents, including subordination agreements

5. Original and one copy of executed settlement statements

6. Record of disbursement of funds to the landowner

7. Completed IRS Form 1099 issued to the landowners

[CLOSING AGENT NAME] will deliver the following to the landowner upon closing:

1. Proceeds of the sale, less any expenses to place title in the condition specified above, such as expenses to remove liens, deeds of trust, etc., as set forth in the NRCS closing instructions and requirements from the OGC’s preliminary title opinion

2. Seller’s closing statement, if applicable

3. A copy of the recorded ACEP-WRE Warranty Easement Deed

4. A copy of the recorded mortgage subordination and lien waiver agreement, if applicable

5. Completed IRS Form 1099

Please acknowledge receipt of these instructions, and indicate your agreement to act in accordance therewith by signing and returning a copy of the undersigned. Please provide a projected closing date, projected closing costs, and the name, address, and account number of the financial institution where electronic funds are to be submitted, if applicable. Please contact [NRCS Easement POC] at [Phone number and email address] if additional information is needed. We appreciate your prompt action to expedite the processing of this case.

Sincerely, NRCS Easement Programs Staff (preparer) NRCS Contracting Officer

Enclosures

cc. Landowner Local NRCS office Local FSA office

Projected closing date: __________________________________

Total projected closing costs: $_________________________ (with itemization for nature of debt and amount)

Name, address, and account number of financial institution where electronic funds are to be mailed:

Name _____________________________________

Address ___________________________________

Account Number ____________________________

Closing Agent’s Signature Date