IOWA COUNTY: LIFE ESTATE OF JOHN C. GATES
FRIDAY, APRIL 5, 2024 @ 2:00 PM
VICTOR AMERICAN LEGION
601 3RD STREET
LISTING # 24106
DESCRIPTION: This auction will consist of the sale of the Life Estate of John C. Gates who is currently 81 years old. This is a sale of the Life Estate interest only, which entitles the buyer to the use and income from the Life Estate property during the life of John C. Gates. This is not an outright sale of the real estate, but a sale of the income generated by the Life Estate Interest of John C. Gates. No information regarding John C. Gates’ physical health can be released due to HIPPA regulations. This property consists of 157 gross acres of land, with approximately 103 tillable acres that is under lease and has various improvements, including the residence. The residence is not currently part of the rental agreement on the land, but is part of the sale of the Life Estate and could be rented out at the discretion of the buyer of the Life Estate. The buyer of the Life Estate of John C. Gates is purchasing the Life Estate and has the right to the income generated from a cash lease for 2024 on this property (103 acres) and any other income generated from the improvements owned under this Life Estate. The improvements on the subject property cannot be removed or remodeled for the duration of the Life Estate, without the written permission from the owners of the real estate named under the Life Estate.
LEGAL DESCRIPTION: The North One Half of the Northwest Quarter (N1/2 NW1/4); West Seventeen and Ten 100/ths acres (W. 17.10) of the Northwest Quarter of the Northeast Quarter (NW1/4 NE1/4) in Section Sixteen (16); Lot One (1) in Plat of the Southwest Quarter (SW1/4), Except Parcel “A” in the Southwest Quarter (SW1/4) in Section Fifteen (15), Township Eight-one (81) North, Range Twelve (12), West of the 5th P.M., Iowa County, Iowa. This legal description is for reference only and not to be construed as real estate offered for sale. Please refer to abstract for exact legal description.
FARM PROGRAM INFORMATION:
Cropland: 110.77 acres
Average CSR2: 48
Average County CSR2: 62.5
CRP PAYMENT: There are presently 3.67 acres of CRP on this property paying $280.75/acre or $1,030/ annually until September 30, 2033. This CRP payment is part of the Life Estate of John C. Gates and will be paid to the buyer when due, on or about October 1, 2024, and every October 1, until the Life Estate ceases.
FARM LEASE: This Life Estate property has a farm lease dated December 6, 2023, that calls for the rental of 103 acres m/l of tillable farmland with 100% of that rent due on March 1, 2024. This rent will be due and payable in full to the buyer of the Life Estate at closing, with the lease ending on February 28, 2025, unless the lease is not terminated by either the tenant or the landlord. This Life Estate terminates immediately upon John C. Gates’ death. Contact auctioneer for any additional information regarding rental rates.
IMPROVEMENTS: This Life Estate also includes the improvements on the described property which consist of several machinery storage buildings and a residence. There presently is no lease in place on these improvements, but the buyer of the life estate, at their option, can enter into a rental agreement for these improvements at their discretion.
INSURANCE: The successful bidder will be required to carry liability & casualty insurance on the subject property and will need to provide proof of that policy to the present owners of the property involved in the Life Estate at closing. The present owners of the property will have the option of also carrying liability and property insurance on the improvements, at their discretion.
PROPERTY TAXES: Current property taxes on the property are $4,670/year due on September 1, 2023, and March 31, 2024. These property taxes are the responsibility of the current owner of the Life Estate and will be paid at closing, if not paid prior to closing. Any property taxes assessed after the closing of the Life Estate will be the sole responsibility of the buyer of the Life Estate when they come due.
TERMS AND CONDITIONS
SALE METHOD: This Life Estate of John C. Gates will be sold as a total lump sum figure. Bidding increments are at the discretion of the auctioneer.
EARNEST PAYMENT: A 15% earnest money payment is required on the day of the auction. The earnest payment may be paid in the form of cash or check. All funds will be held in the named attorney’s trust account.
CONTRACT AND TITLE: Immediately upon conclusion of the auction the high bidder will enter into a real estate contract for the Life Estate and deposit with Shuttleworth & Ingersoll Law Office the required earnest payment. Sale is not contingent upon buyer financing. Seller to pay all escrow closing costs.
CLOSING: Closing will occur May 1, 2024, when the balance of the purchase price for the Life Estate of John C. Gates is due. The balance of the purchase price will be payable at closing in cash, guaranteed check, or wire transfer.
BIDDER REGISTRATION: All prospective bidders must register with the auction company and receive a bidder’s number in order to bid at the auction.
ATTORNEY: Mary Rose Shelley
SELLERS: Life Estate of John C. Gates
This sale is subject to all easements, covenants, leases and restrictions of record. This Life Estate of John C. Gates is being sold on an “As is—Where Is” basis with no warranties or guarantees, expressed or implied, made by the Realtor or Seller. All potential buyers are urged to perform their due diligence on the subject property prior to the auction. All map boundaries are approximate, and photographs used may or may not depict the actual property. Total tract acres, tillable acres, FSA acres, etc. are approximate and may be subject to change. All bids will be on a total lump sum figure basis. Seller reserves the right to accept or reject any and all bids.