Estate - 2.87+/- ac on US 158 Bypass, Nags Head, NCSells Above $589,000 Bid

Preview: Drive by anytimeOnline Bidding Closes: April 25 (see pg 4 for specific times)Property Location: S. Croatan Highway/US 158, Nags Head, NC 27959Property#: FX1869

Bill Londrey, Tranzon Fox121 Pennsylvania AveVirginia Beach, VA 23462

P: 804-355-2251F: 757-473-9787blondrey@tranzon.com

TRANZON.COM

TTaabbllee ooff CCoonntteennttssClick the links below to go directly to its corresponding section

1. Attention Prospective Bidders

2. Property/Auction Overview

3. Photo Gallery

4. Property Location

5. Tax Information

6. Plats

7. Zoning Information

8. Online Auction Terms & Conditionsand Bidding Instructions

9. Broker Acknowledgement Form

10. Purchase Contract

11. Working With Real Estate Agents

12. About Tranzon

ATTENTION PROSPECTIVE BIDDERS

ALL INFORMATION CONTAINED IN THIS AND OTHER ADVERTISEMENTS

WAS OBTAINED FROM SOURCES BELIEVED TO BE ACCURATE. HOWEVER, NO WARRANTY OR GUARANTEE, EITHER EXPRESSED OR IMPLIED, IS INTENDED OR MADE. ALL PURCHASERS MUST INDEPENDENTLY INVESTIGATE AND CONFIRM ANY INFORMATION OR ASSUMPTIONS ON WHICH ANY BID IS BASED. NEITHER AUCTION COMPANY NOR SELLERS SHALL BE LIABLE FOR ANY ERRORS OR THE CORRECTNESS OF INFORMATION.

PROPERTY SOLD “AS IS, WHERE IS, WITH ALL FAULTS.” PROSPECTIVE BIDDERS SHOULD VERIFY ALL INFORMATION. THE PROPERTY IS OFFERED FOR SALE TO QUALIFIED PURCHASERS WITHOUT REGARD TO PROSPECTIVE PURCHASER'S RACE, COLOR, RELIGION, SEX, MARITAL STATUS OR NATIONAL ORIGIN. THE PROPERTY AND IMPROVEMENTS WILL BE SOLD "AS IS" WITHOUT REPRESENTATION OR WARRANTY OF ANY KIND, INCLUDING ANY REPRESENTATIONS REGARDING ENVIRONMENTAL CONDITIONS AFFECTING THE PROPERTY.

THE REAL PROPERTY SHALL BE SOLD FREE AND CLEAR OF LIENS, BUT

SUBJECT TO CONDITIONS, RESTRICTIONS, RIGHTS-OF-WAY, EASEMENTS, AND RESERVATIONS, IF ANY, OF RECORD; SUBJECT TO THE RIGHTS, IF ANY OF TENANTS-IN-POSSESSION, UNDER LAW. NEITHER THE AUCTION COMPANY NOR THE SELLERS MAKE OR HAS MADE ANY REPRESENTATION OR WARRANTY WITH RESPECT TO THE ACCURACY, CORRECTNESS, COMPLETENESS, CONTENT OR MEANING OF THE INFORMATION CONTAINED HEREIN. ALL PROSPECTIVE PURCHASERS RECOGNIZE AND AGREE THAT ANY INVESTIGATION, EXAMINATION, OR INSPECTION OF THE PROPERTY IS WITHIN THE CONTROL OF THE OWNER OR OTHER PARTIES IN POSSESSION AND THEIR AGENTS.

ANY DECISION TO PURCHASE OR NOT TO PURCHASE IS THE SOLE AND INDEPENDENT BUSINESS DECISION OF THE POTENTIAL PURCHASER. NO RECOURSE OR CAUSE OF ACTION WILL LIE AGAINST ANY OF THE ABOVE-MENTIONED PARTIES SHOULD PURCHASER BECOME DISSATISFIED WITH ITS DECISION, WHATEVER IT MAY BE, AT A LATER DATE.

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Estate - 2.87+/- ac on US 158 Bypass, Nags Head, NCSells Above $589,000 BidProperty #: FX1869

Online Bidding Closes:Tuesday, April 25 (see below for times)

Property Preview Date and Time:Drive by anytime

Property Location:S. Croatan Highway/US 158 BypassBetween Dune St and Soundside RdNags Head, NC 27959

Property Description: Estate Auction of 8 Lots comprising 2.87+/- ac on US 158 Bypass, OldNags Head, NC - Guaranteed to Sell Above $589,000 Bid

Rare offering of eight contiguous lots comprising nearly three acres in the heart of Old NagsHead! Buy one, a few or the whole thing for your dream beach house or commercial/retail/residential development! Lots to be offered via online auction both individually and as anentirety.

Flexible C-2 General Commercial zoning allows for a variety of retail, restaurant and office usesas well as R-3 uses which include duplex and single family detached homes. It is located acrossthe beach road from the historic Old Nags Head beach cottages, a mere block from Jockey'sRidge and Kitty Hawk Kites and a stone's throw from Outer Banks Hospital, Nags Head Golflinks and all the south Nags Head shopping. This site is at the epicenter of OBX beach life.Public utilities. Please note that lot corner flagging on US 158 Bypass is approximate.

Entirety Offering:- 2.87+/- Acres- 630+/- ft of US 158 Bypass frontage

Offering Lot # Acres Parcel ID # Tax Value AnnualTax

ClosingTime (ET)

FX1869-06 6 0.422± ac 989108990139 $126,100 $921 10:00amFX1869-07 7 0.346± ac 989108990238 $114,600 $837 10:20amFX1869-08 8 0.356± ac 989108990304 $116,300 $849 10:40amFX1869-09 9 0.354± ac 989108899470 $116,300 $849 11:00amFX1869-10 10 0.350± ac 989108899446 $114,600 $837 11:20amFX1869-11 11 0.349± ac 989108899513 $114,600 $837 11:40amFX1869-12 12 0.345± ac 989108898589 $114,600 $837 12:00pmFX1869-13 13 0.348± ac 989108897697 $114,600 $837 12:20pm

FX1869-ALL Entirety 2.871± ac $931,700 $6,804 1:20pm

James Gilreath of Rose Harrison & Gilreath, P.C. shall act as Buyer closing agent in connectionto these settlements.James R. Gilreath, Jr., Rose Harrison & Gilreath, P.C.Deliveries: 700 Blue Jay St., Ste 1 | Mail: P.O. Box 405Kill Devil Hills, NC 27948252.480.1414 | 252.480.1765 (fax) | outerbankslaw.com

Directions: From Hampton Roads, VA and points northeast: Cross the Wright MemorialBridge onto the Outer Banks and proceed south on US 158/S. Croatan Hwy for 13 miles.Property is on the left just south of Jockey's Ridge, between Soundside Rd and Dune St.

From Raleigh, Rocky Mount and Greenville, NC: Take Highway 64 East toward Manteo,continuing across the Virginia Dare Memorial Bridge onto the Outer Banks. Turn left onto US158 Bypass/ S. Croatan Highway and go 3.5 miles. Property is on the right between Dune Stand Soundside Road.

Cooperating Broker’s Fee: 2% of the high bid will be paid to a properly registered broker atsettlement.

Summary of Terms of Sale: All property sold in “as is” condition. $589,000 disclosed minimumbid amount applies to FX1869-All, Entirety offering only. Auction is not over until all rounds ofbidding have been completed and Auction Firm announces the winner(s). A 10% buyer’spremium will be added to the high bid to determine the contract price. High bidder will execute aContract for Sale and Purchase of Real Estate and provide 10% deposit due within 48 hours ofbeing notified that you are the successful high bidder. Balance of contract price is due atclosing within 45 days. Seller will provide special warranty deed at closing. Please see theContract for Sale of Real Estate and Terms & Conditions in this package for all sale terms.

Bill Londrey 804-355-2251Tranzon Fox blondrey@tranzon.comwww.tranzon.com NCAF4953

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This map is prepared from

data used for the inventory of

the real property for tax

purposes. Primary information

sources such as recorded

deeds, plats, wills, and other primary public

records should be consulted for verification of

the information contained in this map.

DARE COUNTY ASSUMES NO LEGAL RESPONSIBILITY FOR THE INFORMATION CONTAINED IN THIS MAP.

Print Date: Feb 16, 2017

Parcel: Pin: Tax District: Subdivision: Lot-Blk-Sect: Property Use: Building Type: Year Built:

Tax Ownership Current Tax Value

Land 0

Building 0

Misc 0

Total 0

Map Legend

Scale: 1:2,133Basemap: Aerials(2012)Parcel Lines

Property Line

Selected Parcel

30 m

100 ft Leaflet

This map is prepared from

data used for the inventory of

the real property for tax

purposes. Primary information

sources such as recorded

deeds, plats, wills, and other primary public

records should be consulted for verification of

the information contained in this map.

DARE COUNTY ASSUMES NO LEGAL RESPONSIBILITY FOR THE INFORMATION CONTAINED IN THIS MAP.

Print Date: Feb 15, 2017

Parcel: Pin: Tax District: Subdivision: Lot-Blk-Sect: Property Use: Building Type: Year Built:

Tax Ownership Current Tax Value

Land 0

Building 0

Misc 0

Total 0

Map Legend

Scale: 1:8,531Basemap: Aerials(2012)Parcel Lines

Property Line

Selected Parcel

100 m

500 ft Leaflet

PPllaattss

ZZoonniinngg IInnffoorrmmaattiioonn

Sec. 48-407. - C-2 general commercial district.

(a) Intent. The C-2 general commercial district is established to provide for the proper grouping anddevelopment of commercial facilities to serve the entire community. All C-2 districts shall be at leastfive acres in area.

(b) Permitted uses. The following uses shall be permitted by right in the C-2 district:

(1) Offices, including:

a. Business.

b. Dialysis center.

c. Financial.

d. Governmental.

e. Medical.

f. Professional.

g. Coffee shop.

(2) Retail establishments, including:

a. Antiques.

b. Appliances.

c. Bicycles.

d. Boat sales and service.

e. Books.

f. Cameras.

g. Candy.

h. Clothing.

i. Computers.

j. Craft goods.

k. Drugs.

l. Dry goods.

m. Flowers, greenhouses, plant nurseries.

n. Foodstores.

o. Gifts.

p. Hardware.

q. Hobby goods.

r. Jewelry.

s. Magazines.

t. Musical instruments.

u. Notions.

v. Owner occupied art gallery.

w. Sporting goods.

x. Toys.

(3) Service establishments, including:

a. Aerobic class/dance school/karate school.

b. Barbershops and beauty shops.

c. Dry cleaning and laundry pickup stations, including laundromats.

d. Funeral homes.

e. Indoor recreational activities limited to amusement arcades, pinball machines, videogames, video machines or other similar player operated amusement devices, billiardrooms, bowling alleys, sport-climbing walls, paintball and laser tag facilities, and soft playactivities for juveniles. Beach and charitable bingo, adult arcades, sexually orientedbusiness activities, adult live entertainment, and slot machines or devices as prohibited byG.S. 14-306 are specifically excluded from this indoor recreational activities definition.

f. Nonprofit/outreach center with aquatic fitness facility.

g. Nonprofit community outreach centers.

h. Parking lots.

i. Radio and television broadcasting studios.

j. Restaurants.

k. Shoe repair.

l. Theaters.

m. Municipally owned public access facilities.

n. Indoor fitness center.

o. Restaurant, takeout.

p. Beach recreation equipment rentals and sales.

q. Taxi and limousine service.

(4) Single-family dwelling units and duplexes, subject to dimensional requirements of R-3 district,except for minimum lot width.

(5) Estuarine bulkheads.

(6) Customary accessory uses and structures, including private swimming pools, private docks,minor communication towers, dish antennas and home occupations, vertical axis wind energyfacilities and roof top wind energy facilities.

(7) Large residential dwellings, subject to other requirements of this chapter and provided that allthe conditions are met as specified in section 48-370.

(8) Auction houses.

(9) Bed and breakfast, subject to the dimensional requirements of single-family dwellings within thiszoning district and town Code section 48-370.

(10) Outdoor stands as an accessory use to retail shopping centers and office retail groupdevelopment pursuant to section 48-372.

(11) Indoor public assembly.

(12) Concealed building mounted antenna installed flush with or below the roof line.

(13) Municipally-owned recreation facilities which may include, but shall not be limited to: multi-usecourts, multi-purpose recreation fields, fitness trails, play equipment and event plaza andpavilion, subject to requirements of the district in which it is located.

(c) Conditional uses. The following uses shall be permitted subject to the requirements of this C-2district and additional regulations and requirements imposed by the board of commissioners asprovided in article XIX of this chapter:

(1) Automobile service stations and repair garages, subject to other requirements of this chapterand provided that the following conditions are met:

a. No principal or accessory building shall be located within 50 feet of an existing residentialuse or district.

b. There will be no storage of wrecked or abandoned vehicles.

c. No petroleum pumps shall be nearer than 50 feet to any right-of-way or property line.

d. The site shall be designed to contain on-site all stormwater from impervious surfaces up tothe level of a ten-year, two-hour storm event, the equivalent being 4.24 inches of rainfall ina two-hour period.

e. All underground fuel storage tanks shall be equipped with leak detection devices. The typeof detection device shall be approved by and subject to periodic inspections by the town.

f. The boundaries of the entire site shall be buffered from all adjacent properties and rights-of-way in accordance with subsection 48-482(1), buffer yard A.

g. Automobile service station canopies may be subject to an annual inspection by the buildinginspector for the purpose of ensuring that the canopy is maintained in a safe condition. Anyfee for the annual inspection shall be in accordance with the regularly adopted feeschedule of the town.

h. When any portion of an automobile service station canopy, i.e., vertical or horizontalsupport, or panel becomes unsafe, prior to the issuance of town warning citation, thebuilding inspector shall give written notice to the owner of the premises that within 30 daysof the date of receipt of the notice the canopy shall be:

1. Fully restored in accordance with plans submitted by a state registered engineer whoshall certify that the restored canopy meets or exceeds the applicable requirements ofthe state building code; or

2. Entirely dismantled and removed from the site.

(2) Public utility facilities, subject to other requirements of this chapter and provided that thefollowing conditions are met:

a. No open storage is allowed.

b. All utility structures requiring a building permit shall be architecturally compatible with otherstructures in the vicinity.

c. The boundaries of the entire site shall be buffered in accordance with subsection 48-482(1), buffer yard A.

(3) Fishing piers, subject to other requirements of this chapter and provided the following conditionsare met:

a. The site shall not be located closer than 500 feet to any residential zoning district (R-1, R-2, R-3, CR, SPD-20, SED-80, SPD-C).

b. Holding lanes shall be provided for automobiles entering and leaving the site to minimizetraffic congestion on public roads in addition to those requirements for parking lotentrances contained in subsection 48-163(17).

c. Lighting shall be provided in accordance with article IX of this chapter.

d. The boundaries of the entire site shall be buffered in accordance with subsection 48-482(4), buffer yard D.

(4) Animal boarding kennel or veterinary clinic, provided that all pens and kennels are in anenclosed, air conditioned building and further provided that all unenclosed runs be set back notless than 50 feet from any existing residential use or district.

(5) Retail shopping center, provided that the following additional requirements and conditions aremet:

a. A retail shopping center shall meet the requirements for minimum lot width, side and rearsetbacks, height limit, maximum lot coverage and minimum lot area as specified insubsection (d) of this section. A retail shopping center shall have a minimum front setbackfor all principal and accessory structures of 75 feet.

b. A 12-foot wide paved fire lane shall be provided to the rear or side of each commercialestablishment, separate from customer, pedestrian and vehicular traffic flow, and whichmay be used to reach loading and unloading areas. The edge of the paved access nearerthe structure shall be not closer than ten feet nor farther than 30 feet from the sides of thestructure.

c. Screened dumpsters shall be provided in accordance with chapter 30 of this Code.

d. A sidewalk or boardwalk constructed to provide a grade separation from vehicular traffic ofat least six inches shall connect all commercial establishments within each building.Separate buildings shall be connected with pedestrian passageways that are striped whencrossing traffic lanes.

e. No portion of any building shall be farther than 250 feet or closer than 50 feet to a firehydrant.

f. Fire hydrants shall be protected from traffic in accordance with section 20-1 and shall bemarked with stripes on the pavement within the protected area.

g. If the structures are not considered sprinkler protected according to the applicable NationalFire Protection Association standards, the fire flow of the hydrants serving or intended toserve the structures shall be tested at the developer's expense by the town fire departmentor by an independent testing firm. If the test is conducted by an independent testing firm, itshall be made under the direct supervision of the town fire chief or his designee. A fee, inaccordance with the most recently adopted consolidated fee schedule, shall be paid by thedeveloper. If the flow is found to be deficient according to the insurance service officestandards applicable to the town, the developer shall bring the fire flow up to theestablished requirements set out in the insurance service office standards. The fire flowtest shall be made during the period of peak water demand as determined from waterconsumption data maintained by the town water department.

h. A minimum of 600 feet of frontage along a street shall be required before two accesswaysare permitted to the same street. A minimum of 900 feet of frontage shall be requiredbefore three accessways are permitted. No retail shopping center shall have more thanthree accessways to one street. The accessways shall comply with the followingstandards:

1. Accessways shall not be less than 30 feet or more than 40 feet in width at theirintersection with the property line;

2. The principal accessways shall have an exit lane for left turns where permitted and anexit lane for right turns and one entrance lane. The lanes shall be appropriatelymarked as to exit and entrance; and

3. At its intersection with the property line, an accessway shall not be less than 100 feetfrom another accessway or 50 feet from a corner of the property. At least oneaccessway will be allowed for each shopping area.

i. Each retail shopping center with its buildings, parking lots and driveway shall be physicallyseparated from each adjoining street by a curb or other suitable barrier to preventunchanneled vehicular ingress or egress.

j. Lighting in accordance with article IX of this chapter shall be installed in all parking andservice areas.

k. A buffer shall be maintained along property lines abutting any neighboring lots not a part ofthe retail shopping center in accordance with subsections 48-482(2) or (3), buffer yard B orC.

l. Public restrooms shall be provided in a convenient and easily identifiable location at thedeveloper's expense. One restroom for each sex is required to be open when the retailshopping center is open.

m. There shall be a minimum 20-foot separation between detached buildings.

n. A preapplication conference shall be held between the planning board and the applicant.

(6) Reserved.

(7) Hotels, provided that the following requirements and conditions are met:

a. A hotel parcel shall have a minimum width of 150 feet.

b. A minimum front yard setback of 30 feet is required.

c. A minimum rear yard setback of 30 feet is required.

d. A minimum setback for any structure from a side yard property line other than a propertyline along a state or town street right-of-way shall be ten feet. In the case of a corner lot, toensure adequate sight clearance, the minimum width of the side yard adjacent to the right-of-way shall be the greater of either the front yard setback or side yard setback.

e. The maximum height of a structure shall be 35 feet.

f. A minimum of 50 percent of the required side yard setbacks shall be left undeveloped asopen space. Subterranean sewage systems and repair areas are allowed in the requiredsetbacks.

g. Hotel units shall be at least 300 square feet in area. Hotel efficiency units shall be at least400 square feet in area. No hotel unit or hotel efficiency unit shall be greater than 700square feet in area except for hotel suites as regulated below.

h. In addition the above hotel units, hotels may have hotel suites consisting of no more twobedrooms and a total unit size not to exceed 900 square feet in area.

i. Each detached building intended for rental or guest occupancy shall contain a minimum oftwo hotel rental units.

j. Unless the public safety department has approved an alternate life safety/fire evacuationplan, a 12-foot wide paved vehicular access along all four sides of structures intended forovernight accommodations shall be provided suitable for firefighting and rescue equipment.The edge of the paved access nearer the structure shall be no closer than ten feet, norfarther than 30 feet, from the sides of the structure. The structure(s) shall be sprinklerprotected in accordance with section 20-121 of the Town Code of Ordinances. A fire flowtest of the water supply for the sprinkler system serving or intended to serve thestructure(s) shall be conducted at the developer's expense by the town fire department orby an independent testing firm. If the test is conducted by an independent testing firm, itshall be made under the direct supervision of the town fire chief or his designee. A fee, in

accordance with the most recently adopted consolidated fee schedule, shall be paid by thedeveloper. If the flow is found to be deficient according to the insurance service officestandards applicable to the town, the developer shall bring the fire flow up to theestablished requirements set out in the insurance service office standards. The fire flowtest shall be made prior to the issuance of a building permit.

k. Required loading areas shall be designed so as not to block the access by fire and rescuevehicles.

l. Containers for garbage and refuse shall be provided in accordance with chapter 30 of theTown Code. Areas for screened dumpsters shall be provided so as to be out of the trafficflow and accessible to garbage trucks at all times.

m. A sidewalk or boardwalk constructed to provide a grade separation from vehicular traffic ofat least six inches shall connect all principal buildings on the site. Separate buildings shallbe connected with pedestrian passageways that are striped when crossing traffic lanes.

n. No portion of any building shall be farther than 250 feet or closer than 50 feet to a firehydrant.

o. Fire hydrants shall be protected from traffic in accordance with section 9-1 of the TownCode and shall be marked with painted stripes on the pavement within the protected area.

p. A minimum of 600 feet of frontage along a street shall be required before two accesswaysare permitted to the same street. A minimum of 900 feet of frontage shall be requiredbefore three accessways are permitted. No hotel development shall have more than threeaccessways to one street. The accessways shall comply with the following standards:

1. Accessways shall not be less than 30 feet or more than 40 feet in width at theirintersection with the property line and shall be installed with curbs of asphalt orconcrete at street connections to prevent damage to roadways;

2. The principal accessways shall have an exit lane for left turns where permitted and anexit lane for right turns and one entrance lane. The lanes shall be appropriatelymarked to indicate exit and entrance; and

3. At its intersection with the property line, an accessway shall not be less than 50 feetfrom a corner of the property. For hotel sites with more than one accessway, aminimum 100-foot separation shall be maintained between on-site accessways. Atleast one accessway will be allowed for each hotel development.

q. Each hotel site with its buildings, parking lots and driveways shall be physically separatedfrom each adjoining street by a curb or other suitable barrier to prevent unchanneledvehicular ingress or egress.

r. Lighting in accordance with section article IX of this chapter shall be installed in all parkingand service areas.

s. There shall be a minimum separation of 20 feet between detached buildings.

t. Hotel parcels east of US 158 must be within 500 feet in a straight line distance to either aprivate, deeded ocean access or a public ocean access. The access must consist of aminimum five-foot wide improved pedestrian path. Hotels west of US 158 must providedirect, private soundfront access.

u. Hotel sites may include the following accessory uses: retail shops, offices, restaurants,indoor entertainment facilities, indoor public assembly for the benefit of their occupants andguests and the general public, and outdoor recreation facilities as otherwise permitted inthat district, provided the parking for all such establishments shall meet the requirements ofsubsection 48-163(3).

v. Hotels may have accessory, employee dormitories intended to furnish group housing foremployees provided the following conditions are met:

1. All accessory employee dormitories must be located on the same site as the hoteluse.

2. An employee dormitory shall not contain more than one kitchen.

3. The square footage of an employee dormitory building shall be limited to no more than25 percent of the square footage of the principal hotel building(s) on the site.

w. A pre-application conference shall be held between the planning board and the applicant.The applicant shall present at least a survey and conceptual site plan.

x. A hotel parcel may contain multiple hotel buildings and permitted accessory buildings.

y. Reserved.

(8) Religious complexes, subject to other requirements of this chapter and provided that thefollowing conditions are met:

a. All structures within the religious complex shall be separated by a minimum of 30 feet.

b. No structure shall be located closer than 25 feet to a common property line, nor closer than30 feet to an abutting street or highway right-of-way.

c. The ratio of total floor area to total site area shall not exceed one to four.

d. If the site abuts a residential district or use, all parking areas shall be buffered from anyabutting residential district or use in accordance with subsection 48-482(4), buffer yard D.

(9) Car washes (automated and self-serviceonly), subject to other requirements of this chapter andprovided that the following conditions are met:

a. An attendant shall visit and assess the site a minimum of two times daily during all hours ofoperation to ensure a clean, orderly operation.

b. Security cameras shall be installed and positioned to provide video surveillance of theentire site and operations.

c. No principal or accessory building shall be located within 50 feet of an existing residentialuse or district. No freestanding vacuums, air compressors, or other vehicular servicingareas shall be located within 50 feet of an existing residential use or district.

d. A car wash shall be constructed so as to allow vehicles to pass through the structure inorder to create an orderly traffic flow. Furthermore, stacking spaces shall be provided forvehicles entering and exiting the site to minimize traffic congestion on public roads.

e. A car wash shall be enclosed on at least two sides with open bays and a roof structure. Acar wash must comply with the architectural design standards of town Code section 48-371.

f. The boundaries of the entire site shall be buffered from all adjacent properties and rights-of-way in accordance with subsection 48-482(1), buffer yard A. This buffer yard, whenadjacent to residential uses and districts, shall be continuous and opaque. Fencing may beincorporated into the buffer to ensure opaqueness when necessary.

g. The site shall be designed to contain all stormwater from impervious surfaces consistentwith the applicable standards of town Code chapter 34 - Stormwater, Fill, and RunoffManagement.

h. The car wash shall utilize a recyclable water type system.

i. Car washes shall only be located on properties with frontage on US 158.

j. Car washes may have specified hours of operation as necessary to minimize the impactson any adjacent residential uses.

(10) Multifamily dwellings, provided that the following additional requirements and conditions aremet:

a. A multifamily lot shall have a minimum width of 150 feet.

b. A minimum setback for all structures from all property lines shall be 1.75 times the height atthe top of the top plate or roof panel in the tallest building in the development site, but shallbe a minimum of 35 feet to all property lines.

c. The maximum distance from the top plate or roof panel to the original grade or finishedgrade, whichever is the greater distance, shall not exceed 40 feet. Height shall not exceed47 feet. The enclosed area above the top plate or roof panel shall not be habitable andshall be unoccupied except for necessary structural and mechanical appurtenances.

d. A minimum of 50 percent of the required setbacks shall be left undeveloped andlandscaped as open space. Subterranean sewage systems and repair areas are allowed inthe required setbacks.

e. The boundaries of the entire site shall be buffered from all adjacent properties and rights-of-way in accordance with subsection 48-482(1), buffer yard A.

f. The minimum lot area for a multifamily development site shall be 26,000 square feet for thefirst three units and 3,500 square feet for each additional unit.

g. Each multifamily dwelling unit shall contain at least 1,000 square feet of floor area.

h. Unless the public safety department has approved an alternate life safety/evacuation plan,a 12-foot wide paved vehicular access along all four sides of principal structures shall beprovided suitable for firefighting and rescue equipment. The edge of the paved accessnearer the structure shall be no closer than ten feet, nor farther than 30 feet, from the sidesof the structure.

i. A pedestrian sidewalk or boardwalk shall be constructed to provide a grade separation ofat least six inches in height and shall connect all principal buildings on the site. In caseswhere traffic lanes separate buildings, the pedestrian passageways shall be striped andmay be on grade.

j. No portion of any building shall be farther than 250 feet or closer than 50 feet to a firehydrant.

k. The structures shall be sprinkler protected in accordance with section 20-121 et seq. A fireflow test of the water supply for the sprinkler system serving or intended to serve thestructures shall be conducted at the developer's expense by the town fire department or byan independent testing firm. If the test is conducted by an independent testing firm, it shallbe made under the direct supervision of the town fire chief or his designee. A fee, inaccordance with the most recently adopted consolidated fee schedule, shall be paid by thedeveloper. If the flow is found to be deficient according to the insurance service officestandards applicable to the town, the developer shall bring the fire flow up to theestablished requirements set out in the insurance service office standards. The fire flowtest shall be made prior to the issuance of a building permit.

l. At its intersection with the property line, any driveway shall not be less than 100 feet fromanother driveway or 50 feet from a corner of the property. At least one driveway will beallowed for each multifamily development.

m. There shall be a minimum separation of 40 feet between detached buildings.

n. Multiple-dwelling units may have as an accessory use a management office, not includinga trailer, provided that the management office shall be included as a permanent structure inthe project's design or may occupy one of the dwelling units. A management office mayinclude within the particular project spaces for maintaining supplies, service products andamenities to be used in connection with the units within the project. There shall be sanitaryfacilities available for customers and employees.

o. Where the provisions of this subsection are in conflict with the provisions of subsection (d),dimensional requirements, the more stringent of the provisions shall apply.

(11) Restaurant, drive-in, subject to other requirements of this chapter and provided that thefollowing conditions are met: The boundaries of the entire site, if located within 50 feet of anexisting residential use or district, shall be buffered from all adjacent properties and rights-of-way in accordance with subsection 48-482(1), buffer yard A.

(12) Restaurant, drive-through, subject to other requirements of this chapter and provided that thefollowing conditions are met: The boundaries of the entire site, if located within 50 feet of anexisting residential use or district, shall be buffered from all adjacent properties and rights-of-way in accordance with subsection 48-482(1), buffer yard A.

(13) Pet shop, subject to other requirements of this chapter and provided that the followingconditions are met:

a. All pens and kennels shall be in an enclosed, air conditioned building.

b. All unenclosed runs shall be set back not less than 50 feet from an existing residential useor district.

(14) Child day care center, subject to other requirements of this chapter and provided that thefollowing conditions are met:

a. The facility shall adhere to the minimum requirements of and be licensed by the statedepartment of human resources, division of facility services, child day care section.

b. Pickup and dropoff areas shall be provided separate from the drive-aisle. The pickup anddropoff areas shall be designed so that no child is required to cross the parking lot or anyother traffic areas.

c. All outdoor recreational areas shall be buffered from adjacent residential uses and districts(R-1, R-2, R-3, CR, SED-80, SPD-20, and SPD-C) in accordance with subsection 48-482(3), buffer yard C. The buffer shall be placed on the exterior side of any requiredfencing.

(15) Nonpowered and wind-driven boat rentals including: canoes, kayaks, sailboats, windsurferboards, and other nonpowered and/or wind-driven watercraft, subject to other requirements ofthis chapter and provided that the following conditions are met: the use shall be entirely withinthe commercial-outdoor recreational uses overlay district.

(16) Small fishing skiff rental establishments, subject to other requirements of this chapter andprovided that the following conditions are met:

a. The use shall be entirely within the commercial-outdoor recreational uses overlay district.

b. Small fishing skiff shall utilize either electric or four-cycle engines only, with a maximumhorsepower of 25 horsepower.

(17) Massage therapy centers, subject to other requirements of this chapter and provided that thefollowing conditions are met: The applicants shall meet the requirements of article II, chapter 12of this Code, massage parlors, health salons and related businesses.

(18) Adult day service center, subject to other requirements of this chapter and provided that thefollowing conditions are met:

a. The facility shall adhere to the minimum requirements of and be licensed by the statedepartment of human resources, division of social services/division of aging.

b. Pickup and dropoff areas shall be provided separate from the drive-aisle. The pickup anddropoff areas shall be designed so that no person attending the center is required to crossthe parking lot or any other traffic areas.

c. All outdoor recreational areas shall be buffered from adjacent residential uses and districts(R-1, R-2, R-3, CR, SED-80, SPD-20, and SPD-C) in accordance with subsection 48-482(3), buffer yard C. The buffer shall be placed on the exterior side of any requiredfencing.

(19) Food bank, subject to other requirements of this chapter and provided that the followingconditions are met:

a. In no case shall a food bank be opened to the public at times earlier than 8:00 a.m. or laterthan 9:00 p.m.

b. Outdoor storage is prohibited.

c. A food bank shall be dedicated exclusively to the storage and disbursement of foodstuffs.No food bank shall provide overnight accommodations, counseling or rehabilitation,services, child care or baby sitting, vocational or other schooling or training, preparation ofmeals, dining areas, worship services, medical services or consultation, or any othersimilar services or programs.

(20) Skate park facility, subject to other requirements of this chapter and provided that the followingconditions are met:

a. The facility shall be provided in conjunction with a nonprofit/outreach center with an indooraquatic fitness facility.

b. The facility must be on an existing single parcel containing split-zoning districts R-2 and C-2.

c. Lot coverage for the parcel shall be the combined average of the coverage allowed in eachindividual zoning district. Total lot coverage may be applied to the total parcel; however,placement of coverage shall not exceed 30 percent in the R-2 district and 80 percent in theC-2 district.

d. Hours of operation shall be 8:00 a.m. until 9:00 p.m. or sunset, whichever occurs first.

e. Lighting of the parking area for the facility when occurring in the R-2 district shall beprohibited except for minimum lighting required for security purposes.

f. A 50-foot buffer shall be provided adjacent to residential uses and districts (R-1, R-2, R-3,CR, SED-80, SPD-20, and SPD-C) and landscaped as open space. Stormwater basinsand subterranean sewage systems are allowed in the required buffer.

(21) Boardinghouse, subject to other requirements of this chapter and provided that the followingconditions are met:

a. Boardinghouses may not exceed four rooms, which are intended to be rented.

b. Occupancy by tenants shall not exceed more than two persons per bedroom and shall befor durations of generally greater than one week.

c. Individual rooms shall not contain independent cooking facilities; this, however, shall notprohibit the serving of meals to tenants or the use of a single kitchen by tenants.

d. Boardinghouses shall be owner occupied and serve as the primary residence of the owner.

(22) Haunted house, subject to other requirements of this chapter and provided that the followingconditions are met:

a. No alcohol shall be served or sold on-site.

b. All tours shall consist of 12 customers or less and shall be guided by a staff member.

c. All attractions, and displays associated with the indoor entertainment facility shall beconfined to the interior of the building except an area not to exceed ten feet from theexterior of the principal structure for non-illuminated decorations.

(23) Elementary school, subject to other requirements of this chapter and provided that the followingconditions are met:

a. A minimum lot area of ten acres is required for an elementary school complex.

b. No structure shall be located closer than 25 feet to a common property line, nor closer than30 feet to an abutting street or highway right-of-way.

c. A buffer yard G shall be provided along any property boundary abutting residential usesand districts.

d. The maximum height of a structure shall be 35 feet. However, if 50 percent or more of theroof is pitched at a six to 12 slope or greater, the maximum structure height shall notexceed 35 feet to the top plate and shall not exceed a total height of 60 feet to the roofridge.

e. Locating of a school system administration office on the same site as an elementary schoolshall be allowed and exempted from the requirements of section 48-76.

f. All structures within an elementary school site shall be separated by a minimum of 30 feet.

g. Lighting shall be in accordance with article IX of this chapter. No lighting of outdoorrecreational areas shall be permitted accept for security purposes in accordance witharticle IX of this chapter.

h. No modular units shall be allowed on school sites.

i. Loading areas shall be provided in accordance with section 48-164.

j. A vehicular and pedestrian access plan shall be developed for the facility in accordancewith the state department of transportation and town public safety standards.

k. An emergency evacuation plan shall be developed in accordance with the state standards.

(24) Office/retail group development, provided that the following additional requirements andconditions are met:

a. An office/retail group development shall meet the requirements for minimum lot width, sideand rear setbacks, height limit, maximum lot coverage and minimum lot area as specifiedin subsection (d) of this section. An office/retail group development shall have a minimumfront setback for all principal and accessory structures of 50 feet.

b. A 12-foot wide paved fire lane shall be provided to the rear or side of each establishment,separate from customer, pedestrian and vehicular traffic flow. The edge of the pavedaccess nearer the structure shall be not closer than ten feet or farther than 30 feet from thesides of the structure.

c. Screened dumpsters shall be provided in accordance with chapter 30 of this Code.

d. A sidewalk or boardwalk constructed to provide a grade separation from vehicular traffic ofat least six inches shall connect all buildings. Pedestrian passageways shall be stripedwhen crossing traffic lanes.

e. No portion of any building shall be farther than 250 feet or closer than 50 feet to a firehydrant.

f. Fire hydrants shall be protected from traffic in accordance with section 20-1 and shall bemarked with stripes on the pavement within the protected area.

g. If the structures are not considered sprinkler protected according to the applicable NationalFire Protection Association standards, the fire flow of the hydrants serving or intended toserve the structures shall be tested at the developer's expense by the town fire departmentor by an independent testing firm. If the test is conducted by an independent testing firm, itshall be made under the direct supervision of the town fire chief or his designee. A fee, inaccordance with the most recently adopted consolidated fee schedule, shall be paid by the

developer. If the flow is found to be deficient according to the insurance service officestandards applicable to the town, the developer shall bring the fire flow up to theestablished requirements set out in the insurance service office standards. The fire flowtest shall be made during the period of peak water demand as determined from waterconsumption data maintained by the town water department.

h. A minimum of 600 feet of frontage along a street shall be required before two accesswaysare permitted to the same street. A minimum of 900 feet of frontage shall be requiredbefore three accessways are permitted. No office/retail group development shall havemore than three accessways to one street. The accessways shall comply with the followingstandards:

1. Accessways shall not be less than 30 feet or more than 40 feet in width at theirintersection with the property line;

2. The principal accessways shall have an exit lane for left turns where permitted and anexit lane for right turns and one entrance lane. The lanes shall be appropriatelymarked as to exit and entrance; and

3. At its intersection with the property line, an accessway shall not be less than 100 feetfrom another accessway or 50 feet from a corner of the property. At least oneaccessway will be allowed for each office/retail area.

i. Each office/retail group development with its buildings, parking lots and driveway shall bephysically separated from each adjoining street by a curb or other suitable barrier toprevent unchanneled vehicular ingress or egress.

j. Lighting in accordance with article IX of this chapter shall be installed in all parking andservice areas.

k. A buffer shall be maintained along property lines abutting any neighboring lots not a part ofthe office/retail group development in accordance with subsections 48-482(2) or (3), bufferyard B or C.

l. There shall be a minimum 20-foot separation between detached buildings.

m. The design of all buildings within an office/retail group development shall comply withrequirements subsection 48-371(c)(1) with the additional requirements that all buildings berequired to use a roof pitch of six-twelfths or greater and achieve a total architectural pointscore of 125 points.

n. A pre-application conference shall be held between the planning board and the applicant.

(25) Commercial/residential mixed development, provided that the following additional requirementsand conditions are met:

a. A minimum lot area of 25,000 square feet and a minimum lot width of 100 feet shall berequired.

b. The minimum front yard, side yard and rear yard requirements shall be as set forth undersubsection 48-407(d) for commercial development.

c. Unless the public safety department has approved an alternate life safety/fire evacuationplan, a 12-foot wide paved fire lane shall be provided to the rear or side of eachestablishment, separate from customer, pedestrian and vehicular traffic flow. The edge ofthe paved access nearer the structure shall be not closer than ten feet or farther than 30feet from the sides of the structure.

d. Screened dumpsters shall be provided in accordance with chapter 30 of this Code.

e. A sidewalk or boardwalk constructed to provide a grade separation from vehicular traffic ofat least six inches shall connect all buildings. Pedestrian passageways shall be stripedwhen crossing traffic lanes.

f. No portion of any building shall be farther than 250 feet or closer than 50 feet to a firehydrant. Fire hydrants shall be protected from traffic in accordance with section 20-1 andshall be marked with stripes on the pavement within the protected area.

g. If the structure is not considered sprinkler protected according to the applicable NationalFire Protection Association standards, the fire flow of the hydrants serving or intended toserve the structure shall be tested at the developer's expense by the town fire departmentor by an independent testing firm. If the test is conducted by an independent testing firm, itshall be made under the direct supervision of the town fire chief or his designee. A fee, inaccordance with the most recently adopted consolidated fee schedule, shall be paid by thedeveloper. If the flow is found to be deficient according to the insurance service officestandards applicable to the town, the developer shall bring the fire flow up to theestablished requirements set out in the insurance service office standards. The fire flowtest shall be made during the period of peak water demand as determined from waterconsumption data maintained by the town water department.

h. Lighting in accordance with article IX of this chapter shall be installed in all parking andservice areas. Minimum lighting requirements shall be determined by the commercial usecomponent(s) of the proposed development.

i. A buffer shall be maintained along property lines abutting any neighboring lots not a part ofthe commercial/residential mixed development in accordance with subsections 48-482(2)or (3), buffer yard B or C.

j. The design of all buildings shall comply with requirements section 48-371, Commercialdesign standards.

(26) Indoor recreational activities limited to amusement arcades, pinball machines, video games,video machines or other similar player operated amusement devices, billiard rooms, bowlingalleys, sport-climbing walls, paintball and laser tag facilities, soft play activities for juveniles,miniature golf courses, skating rinks, supervised amusement rides including ferris wheels,spinners, carousels and the like, and go-kart tracks using electric karts. Beach and charitablebingo, adult arcades, sexually oriented business activities, adult live entertainment, and slotmachines or devices as prohibited by G.S. 14-306 are specifically excluded from this indoorrecreational activities definition.

(27) Restaurant with detached single-family dwelling. Subject to other requirements of this chapterand provided that the following conditions be met:

a. The single-family dwelling shall meet the yard requirements for accessory structures insection 48-78.

b. Only one detached single-family dwelling shall be allowed.

c. Parking shall be provided in accordance with article V off-street parking and loadingrequirements.

d. The detached single-family dwelling shall be exempt from provisions in section 48-123.Nonconforming structure with conforming use.

e. The single-family dwelling shall be exempt from section 48-370, Residential designstandards.

f. The above provisions shall only apply only to structures constructed on or before January1, 1967.

(28) Farmers markets provided that the following additional requirements and conditions are met:

a. The main roof pitch of the principal structure(s) shall be a minimum of six-twelfths.

b. Roof shingles shall consist of wood, asphalt or tin.

c. The structure siding must be wood frame or a simulated wood product.

(29) Concealed building mounted antenna not meeting the requirements of subsection 48-407(b)(12).

(30) Residential group development meeting the requirements of subsection 48-404(c)(10).

(31) Multiple principal uses within a single commercial structure or unit consistent with town Codesection 48-377.

(32) Cottage courts, subject to the requirements of town Code section 48-378.

(d) Dimensional requirements. Unless otherwise specified in subsection (c) of this section, the followingdimensional requirements shall apply in the C-2 district:

(1) A minimum lot area of 15,000 square feet is required for commercial development and single-family dwellings. A minimum lot area of 22,500 square feet is required for duplexes. Lots usingindividual wells and septic tanks shall be 20,000 square feet per dwelling unit.

(2) Dimensional requirements and lot coverage for single-family and two-family uses shall be inaccordance with subsection 48-404(d)(2).

(3) Lot coverage:

a. The lot coverage shall not exceed 55 percent. When performing lot coverage calculations,the residential lot coverage calculation sheet included with the site developmentapplication, as amended, shall be completed and submitted for review and approval.

b. Permeable pavement:

i. For the purposes of determining lot coverage, the total square footage of permeablepavement materials is multiplied by 0.67.

ii. Permeable pavement materials include porous concrete, permeable interlockingconcrete pavers, concrete grid pavers, Turfstone TM , and other proven technologiesavailable as covered in the NC Best Management Practices Manual and as approvedby the town engineer for appropriateness to the site and existing conditions. Porousconcrete shall be designed and installed in accordance with ACI specifications, orequivalent standard, with hydrological, operation and maintenance considerations.Installation shall be conducted by a contractor certified in the installation of the type ofpavement system chosen.

iii. The town encourages use of pervious materials and new technologies that provide forsafe and efficient driveway and parking areas and that appropriately addressstormwater runoff issues. A minimum of 20 percent of the surface area of the parkingarea and drive aisles shall be constructed using permeable surface materials, unlessit can be demonstrated that a topographic or hydrologic constraint exists that wouldlimit its use and effectiveness.

iv. No porous concrete shall be used east of NC 1243 (South Old Oregon Inlet Road) orNC 12 (South Virginia Dare Trail). Compacted gravel shall not be consideredpermeable pavement.

c. In the case of an oceanfront lot, only that area landward of the first line of stable naturalvegetation (as defined by CAMA) shall be used for calculating lot coverage. Where anoceanfront lot has little or no stable natural vegetation, the line of such vegetation shall bea line extending between the nearest such vegetation existing north and south of the lot. Inthe case of lots abutting estuarine waters (as defined by division of marine fisheries andused by CAMA), lot coverage shall be in accordance with the standards listed above,except that in the area waterward of the U.S. Army Corps of Engineers 404 fill line, lotcoverage shall not exceed 30 percent. If the Corps of Engineers 404 fill line is not evidentor located within the estuarine AEC, as defined by CAMA, lot coverage within theestuarine, AEC shall not exceed 30 percent. Lot coverage allowances shall not betransferred from one portion of the lot to another.

d. The area necessary for shared accessways in accordance with subsection 48-90(a) shallbe excluded from the total lot coverage allowance for an individual lot.

e. For residential uses, the total lot coverage may be increased from 40 percent to 45 percentwhen on-site stormwater management facilities are designed, constructed, verified andmaintained to retain and infiltrate the runoff from a 3.5-inch, two-hour rainfall event,assuming a standard infiltration rate of ten inches per hour. The stormwater managementdesign standard may be reduced to a three-inch, two-hour rainfall event when more than15 percent of the lot area is preserved in existing vegetation in accordance with subsection48-485(b)(1)(3).

(4) The minimum depth of the front yard for single-family and duplex development shall be 30 feet.The minimum depth of the front yard for a commercial development shall be 15 feet.

(5) The minimum width of the side yards shall be eight feet for residential development (single-family and duplex). Side yards shall total at least 15 feet in width for commercial development.Every commercial building must be set back no less than five feet from a side property line. Theside yard on either side may be of any size, provided that neither side yard is less than five feetin width and further provided that the sum of the two side yards equals at least 15 feet in width.In the case of a corner lot, to ensure adequate sight clearance, the minimum width of the sideyard adjacent to the right-of-way shall be no less than 15 feet, except in the case of pre-existingnonconforming lots for single-family and duplex use that are less than 10,000 square feet in lotarea and 60 feet or less in lot width, in which case the minimum setback shall be 12 feet. Forlarge residential dwellings, the minimum width of the side yard shall be regulated in accordancewith subsection 48-370(d).

(6) The minimum depth of a rear yard for a residential development (single-family, duplex,multifamily) shall be 20 percent of the lot depth but need not exceed 30 feet. The minimumdepth of the rear yard for a commercial development shall be 25 feet.

(7) Maximum height of structures shall be 35 feet. However, the maximum height of a structure maybe increased to 42 feet if the structure utilizes an eight-twelfths roof pitch as specified in theTown of Nags Head Residential Design Guidelines. For large residential dwellings, height shallbe regulated in accordance with subsection 48-370(d).

(Code 1990, § 22-307; Ord. No. 03-08-040, §§ 13, 14, 35, 8-20-2003; Ord. No. 03-12-053, § 3, 12-3-2003; Ord. No. 04-03-007, § I, 3-3-2004; Ord. No. 04-12-045, § II, 12-1-2004; Ord. No. 05-05-014, § I, 5-4-2005; Ord. No. 05-08-031, § III, 8-3-2005; Ord. No. 06-02-006, § III, 2-1-2006; Ord. No. 06-07-025, § I, 7-5-2006; Ord. No. 06-11-049, § IV, 11-1-2006; Ord. No. 06-12-052, § I, 12-6-2006; Ord. No. 07-03-005, § I, 3-7-2007; Ord. No. 07-04-009, § III, 4-25-2007; Ord. No. 07-06-019, § I, 6-20-2007; Ord. No. 08-01-03, § III, 1-9-2008; Ord. No. 08-02-008, § VII, 2-6-2008; Ord. No. 09-01-008, § II, 1-7-2009; Ord. No. 09-01-009, § I, 1-7-2009; Ord. No. 09-05-019, § II, 5-6-2009; Ord. No. 09-09-034, Pt. I, 9-2-2009; Ord. No. 09-10-040, Pt. IV, 10-7-2009; Ord. No. 09-11-043, Pt. II, 11-4-2009; Ord. No. 09-11-044, Pt. I, 11-18-2009; Ord. No. 09-12-049, Pt. II, 12-2-2009; Ord. No. 10-01-002, Pt. II, 1-6-2010; Ord. No. 10-04-011, Pt. II, 4-7-2010; Ord. No. 10-05-014, Pt. V, 5-19-2010; Ord. No. 10-08-025, Pt. I, 8-4-2010; Ord. No. 11-02-005, Pt. II, 2-2-2011; Ord. No. 11-03-010, Pt. VI, 3-2-2011; Ord. No. 11-07-025, Pt. V, 7-6-2011; Ord. No. 11-11-041, Pt. VII, 11-2-2011; Ord. No. 11-12-044, Pts. IV, V, 12-7-2011; Ord. No. 13-05-013, Pts. I, II, 5-15-2013; Ord. No. 14-01-002, Pt. IV, 1-8-2014; Ord. No. 14-05-010, Pt. I, 5-7-2014; Ord. No. 14-06-018, Pt. III, 6-18-2014; Ord. No. 14-11-029, Pt. II, 11-5-2014; Ord. No. 15-05-013 , Pt. III, 5-6-2015; Ord. No. 15-08-029 , Pts. XIII, XIV, 8-19-2015; Ord. No. 15-09-031 , Pt. V, 9-2-2015; Ord. No. 16-05-010 , Pt. I, 5-4-2016; Ord. No. 16-10-024 , Pt. I, 10-5-2016; Ord. No. 16-11-028 , Pt. V, 11-2-2016)

Editor's note— At the request of the city, subsection 48-407(b)(3)e. has been deleted. To preserve the style of the Code, subsections 48-407(b)(3)f—o. have been renumbered as 48-407(b)(3)e—n.

Cross reference— Businesses and licensing, ch. 12.

Sec. 48-404. - R-3 high-density residential district.

(a) Intent. The R-3 high-density residential district is established as an area in which the principal use ofthe land is for high-density single-family and duplex residential development. The R-3 district alsoprovides for the development of less intensive residential uses as well as compatible supportinguses.

(b) Permitted uses. The following uses shall be permitted by right in the R-3 district:

(1) Detached single-family dwellings (not to include trailers or mobile homes).

(2) Duplexes.

(3) Estuarine bulkheads.

(4) Municipally owned public access facilities.

(5) Customary accessory uses and structures, including private swimming pools, private docks,minor communication towers, dish antennas, roof top wind energy facilities, vertical axis windenergy facilities and home occupations.

(6) Large residential dwellings, subject to other requirements of this chapter and provided that allthe conditions are met as specified in section 48-370.

(c) Conditional uses. The following uses shall be permitted subject to the requirements of the R-3 districtand additional regulations and requirements as imposed by the board of commissioners as providedin article XIV of this chapter:

(1) Cemeteries, subject to other requirements of this chapter and provided that the followingconditions are met:

a. All cemeteries shall have perpetual care.

b. Any grave or burial plot shall be set back not less than 40 feet from any exterior propertyline.

c. Adequate space for the parking and maneuvering of funeral entourages shall be providedwithin the site.

d. Lighting shall be prohibited except for minimum lighting that may be required for securitypurposes.

e. The site shall be approved by all necessary regulatory agencies including, but not limitedto, the county department of environmental health and the state cemetery commission.

f. No cemetery shall be located within a special flood hazard area as depicted on the latestFIRM.

(2) Private parks and playgrounds, subject to other requirements of this chapter and provided thatthe following conditions are met: Lighting shall be prohibited except for minimum lighting thatmay be required for security purposes.

(3) Municipal parks, playgrounds and facilities, subject to other requirements of this chapter andprovided that the following conditions are met: Lighting shall be prohibited except for minimumlighting that may be required for security purposes.

(4) Nursing homes, subject to other requirements of this chapter and provided that the followingconditions are met:

a. The density shall not exceed 20 beds per acre.

b. Lighting shall be prohibited except for minimum lighting that may be required for securitypurposes.

(5) Private clubs, as regulated by section 48-365.

(6) Public utility facilities, subject to other requirements of this chapter and provided that thefollowing conditions are met:

a. No open storage is allowed.

b. All utility structures requiring a building permit shall be architecturally compatible with otherstructures in the vicinity.

c. The boundaries of the entire site shall be buffered in accordance with subsection 48-482(1), buffer yard A.

(7) Religious complexes, subject to other requirements of this chapter and provided that thefollowing conditions are met:

a. All structures within the religious complex shall be separated by a minimum of 30 feet.

b. No structure shall be located closer than 25 feet to a common property line, nor closer than30 feet to an abutting street or highway right-of-way.

c. The ratio of total floor area to total site area shall not exceed one to four.

d. All parking areas shall be buffered from abutting residential districts or uses in accordancewith subsection 48-482(4), buffer yard D.

(8) Boardinghouse, subject to other requirements of this chapter and provided that the followingconditions are met:

a. Boardinghouses may not exceed two rooms, which are intended to be rented.

b. Occupancy by tenants shall not exceed more than two persons per bedroom and shall befor durations of generally greater than one week.

c. Individual rooms shall not contain independent cooking facilities; this however shall notprohibit the serving of meals to tenants or the use of a single kitchen by tenants.

d. Boardinghouses shall be owner occupied and serve as the primary residence of the owner.

(9) Major communication tower, subject to other requirements of this chapter and providing thefollowing conditions are met:

a. The maximum height of a communication tower and antenna shall be 175 feet.

b. The applicant shall submit an engineering report and site plan that contains at least theheight of the tower and antennae, building materials to be used in the tower, number ofproposed antennae and location. The report shall also include a certification from astructural engineer verifying that the tower structure will meet the requirements of Volume1, Chapter 37 of the North Carolina State Building Code concerning wind resistance andwill support the proposed number of antennae.

c. Written verification that the proposed tower complies with regulations administered by theFederal Communications Commission (FCC) and the Federal Aviation Administration(FAA) shall be provided, prior to the board of commissioners' review.

d. The applicant shall submit certification that an existing tower does not meet the applicant'sstructural specifications and/or technical design requirements.

e. Guy-wired towers are prohibited.

f. Major communication towers as permitted under this subsection may be located on upon alot with other principal and accessory structures and uses.

g. Major communication towers as permitted under this section shall be limited to the R-3high density residential district properties located south of Epstein Drive.

(10) Residential group development subject to other requirements of this chapter and the followingadditional requirements which must be shown on a site plan submitted with the conditional useapplication:

a. Residential group development shall only be allowed on a single conforming lot that hasbeen created by the recombination of multiple pre-existing nonconforming lots which eachhad an area less than the minimum lot size of 15,000 square feet.

b. The dwelling units of the residential development shall meet the zoning district'sdimensional yard requirements for single family residential structures as measured fromthe perimeter of the lot on which the development occurs.

c. No dwelling unit or accessory structure within a residential group development may belocated within ten feet of another structure.

d. The number of dwelling units and total bedrooms allowed per residential group are shownbelow. Each dwelling unit must have a minimum of three and may have no more than fivebedrooms.

No. ofDwelling Units

Max. No. of BedroomsAllowed

Area ofUpland

Required

1 5 7,500 sq. ft.

2 10 15,000 sq. ft.

3 15 22,500 sq. ft.

4 20 30,000 sq. ft.

e. Each dwelling unit shall have access to a public street directly or via a driveway to ashared accessway. The shared accessway must be a minimum of 20 feet in width andmeet the reasonable requirements of the fire marshall for access by firefighting apparatus.An accessway width less than 20 feet may be reviewed and approved by the fire marshallin conjunction with an approved alternative life safety plan.

f. If the dwelling units in a residential group development are submitted to a condominiumform of ownership, the developer shall ensure that a condominium association is created tomanage and maintain the common elements shared by the dwelling units as defined by thecondominium documents and by the North Carolina Condominium Act, including, but notlimited to any: streets, driveways, pools, stormwater management systems, sewagesystems, water systems and any other amenities and infrastructure. Upon such asubmission, the town shall be provided with copies of all condominium documents andplats as well as future amendments thereof, which evidence that the condominiumassociation has the authority and ability to manage and maintain the common elements.

g. Any streets or accessways, other than private driveways must be dedicated to public use.However, the continuing maintenance of said streets and accessways remains theresponsibility of the property owner, condominium owners and any condominiumassociation unless and until they are affirmatively accepted for maintenance by the town'sboard of commissioners or otherwise accepted into the state highway system.

h. Off-street parking and loading facilities for each dwelling unit shall be provided so as not tointerfere with the shared accessway or with the access of emergency or service vehicles tothe entire property. Shared parking areas may be utilized to accommodate the total parkingrequirements for the development.

i. All dwelling units within a residential group development, regardless of number ofbedrooms, shall provide a minimum of 75 architectural design points as prescribed byTown Code subsection 48-370(d), residential design standards.

(d) Dimensional requirements. Unless otherwise specified in subsection (c) of this section, the followingdimensional requirements in the R-3 district shall apply:

(1) A minimum lot area of 15,000 square feet is required for single-family dwellings. A minimum lotarea of 22,500 square feet is required for duplexes. Lots using individual wells and septic tanksshall be 20,000 square feet per dwelling unit.

(2) Lot coverage:

a. The lot coverage shall not exceed 30 percent plus 300 square feet or 33 percent,whichever is greater. When performing lot coverage calculations, the residential lotcoverage calculation sheet included with the site development application, as amended,shall be completed and submitted for review and approval.

b. Permeable pavement:

i. For the purposes of determining lot coverage, the total square footage of permeablepavement materials is multiplied by 0.67.

ii. Permeable pavement materials include porous concrete, permeable interlockingconcrete pavers, concrete grid pavers, Turfstone TM , gravel as defined in town Codesection 48-7, and other proven technologies available as covered in the NC BestManagement Practices Manual and as approved by the town engineer forappropriateness to the site and existing conditions. Porous concrete shall be designedand installed in accordance with ACI specifications, or equivalent standard, withhydrological, operation and maintenance considerations. Installation shall beconducted by a contractor certified in the installation of the type of pavement systemchosen.

iii. Edge restraints shall be provided on all concrete grid pavers, permeable interlockingconcrete pavers, and similar type installations to confine the pavement installation.The pavement surface course structural properties shall be designed to withstand theapplied vehicular loading pursuant to the specified application.

iv. No porous concrete shall be used east of NC 1243 (South Old Oregon Inlet Road) orNC 12 (South Virginia Dare Trail). Compacted gravel shall not be consideredpermeable pavement.

c. In the case of an oceanfront lot, only that area landward of the first line of stable naturalvegetation (as defined by CAMA) shall be used for calculating lot coverage. Where anoceanfront lot has little or no stable natural vegetation, the line of such vegetation shall bea line extending between the nearest such vegetation existing north and south of the lot. Inthe case of lots abutting estuarine waters (as defined by division of marine fisheries andused by CAMA), lot coverage shall be in accordance with the standards listed above,except that in the area waterward of the U.S. Army Corps of Engineers 404 fill line, lotcoverage shall not exceed 30 percent. If the Corps of Engineers 404 fill line is not evidentor located within the estuarine AEC, as defined by CAMA, lot coverage within theestuarine, AEC shall not exceed 30 percent. Lot coverage allowances shall not betransferred from one portion of the lot to another.

d. The area necessary for shared accessways in accordance with subsection 48-90(a) shallbe excluded from the total lot coverage allowance for an individual lot.

e. For residential uses, the total lot coverage may be increased by five percent when on-sitestormwater management facilities are designed, constructed, verified and maintained toretain and infiltrate the runoff from a 3.5-inch, two-hour rainfall event, assuming a standardinfiltration rate of ten inches per hour. The stormwater management design standard maybe reduced to a three-inch, two-hour rainfall event when more than 15 percent of the lotarea is preserved in existing vegetation in accordance with subsection 48-485(b)(1)(3).

(3) The minimum lot width shall be 60 feet.

(4) The minimum depth of the front yard shall be 30 feet.

(5) The minimum width of the side yard shall be eight feet. In the case of a corner lot, to ensureadequate sight clearance, the minimum width of the side yard adjacent to the right-of-way shallbe no less than 15 feet, except in the case of pre-existing nonconforming lots that are less than10,000 square feet in lot area and 60 feet or less in lot width, in which case the minimumsetback shall be 12 feet. For large residential dwellings, the minimum width of the side yardshall be regulated in accordance with subsection 48-370(d).

(6) The minimum depth of the rear yard shall be 20 percent of the lot depth but need not exceed 30feet.

(7) Maximum height of structures shall be 35 feet. However, the maximum height of a structure maybe increased to 42 feet if the structure utilizes an eight-twelfths roof pitch as specified in theTown of Nags Head Residential Design Guidelines. For large residential dwellings, height shallbe regulated in accordance with subsection 48-370(d).

(8) All lots in subdivisions in the R-3 high-density residential zoning district, containing lots frontingon US 158 (South Croatan Highway), created after January 8, 1997, and recorded in the countyregistry, shall provide a 15-foot buffer (buffer yard E) in accordance with subsection 48-482(e)(1) and subsection 48-485(b)(1). Such buffer yard shall be maintained in accordance withsection 48-486.

(Code 1990, § 22-304; Ord. No. 03-08-040, §§ 7, 8, 32, 8-20-2003; Ord. No. 03-10-046, § 4, 10-1-2003; Ord. No. 04-10-041, § I, 10-6-2004; Ord. No. 08-02-008, § IV, 2-6-2008; Ord. No. 09-08-029, Pt. I, 8-5-2009; Ord. No. 10-03-009, Pt. IV, 3-17-2010; Ord. No. 11-03-010, Pt. III, 3-2-2011; Ord. No. 11-07-025, Pt. III, 7-6-2011; Ord. No. 11-11-041, Pt. V, 11-2-2011; Ord. No. 14-01-002, Pt. IV, 1-8-2014; Ord. No. 14-06-018, Pt. I, 6-18-2014; Ord. No. 14-11-029, Pt. I, 11-5-2014; Ord. No. 15-03-009 , Pt. IV, 3-4-2015; Ord. No. 15-08-029 , Pts. VII, VIII, 8-19-2015; Ord. No. 15-09-031 , Pt. III, 9-2-2015)

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Terms and Conditions for Timed Online Auctions The following Terms and Conditions apply to all online auctions conducted by Tranzon member companies. The auction company or companies conducting this auction is or are referred to as “we” or “our” or “Auctioneer” in the following Terms and Conditions, and references to the Auctioneer include all of the Auctioneer’s employees, officers, directors, principals, employees, agents and other representatives. The Auctioneer is a member company in Tranzon, LLC and Tranzon International, LLC. All Tranzon member companies are independently owned and operated. The Auctioneer is conducting this auction as an online auction only. Bidders are referred to as “you” or “your” or “Bidder(s)” in the following Terms and Conditions. You are required to acknowledge that you have read and understand these Terms and Conditions before you will be allowed to register for and bid at this auction. In addition, the Auctioneer may add additional terms and conditions (the “Additional Terms and Conditions”) for this auction, and you will be required to acknowledge that you have read and understand any such Additional Terms and Conditions. Such Additional Terms and Conditions may include notification that there is a published or unpublished reserve, or that the results of the bidding at this auction are subject to Seller confirmation. In the event of any conflict between these Terms and Conditions and any such Additional Terms and Conditions provided by the Auctioneer, the Additional Terms and Conditions shall apply and shall supersede any conflicting provisions in these Terms and Conditions. Agent for Seller: The Auctioneer does not own the property being sold in this auction. The property being sold in this auction is owned by one or more parties referred to in these Terms and Conditions as the “Seller.” The Auctioneer is representing the Seller exclusively in this auction transaction. Due Diligence: It is your responsibility to obtain and read the Property Information Package relating to the property being sold at this auction, as well as any and all other information made available on the Tranzon website relating to this auction and the property being sold at this auction. You acknowledge and represent that you have done so. Notwithstanding the foregoing, you also acknowledge and agree that the sale pursuant to this auction is being made on an “as-is, where-is” basis, with no representations or warranties of any kind, expressed or implied, by the Seller and/or the Auctioneer. You further acknowledge that any information contained in the Property Information Package or otherwise obtained through the Tranzon website or directly or indirectly from the Auctioneer and/or the Seller is being presented to the best of the Auctioneer’s and the Seller’s actual knowledge without independent verification. Therefore, it is your sole and exclusive responsibility to inspect the property; review the documents relating to the property; assess the accuracy and completeness of the information contained in the Property Information Package and any such other documents; and independently verify and confirm any estimates, projections, or assumptions relating thereto, none of which may be considered to be guaranties. In connection therewith, you have the sole and exclusive responsibility to select and consult with any and all professional advisors of your choosing in determining whether to bid at this auction. You acknowledge that you have relied exclusively on your own investigation and determinations and the advice or your own professional advisors, and expressly represent that you have not relied upon any information provided by the Seller or the Auctioneer in any way, whether through the Property Information Package or other documents, through the Auctioneer’s website, or by any oral, written or electronic communications with the Auctioneer or the Seller, or otherwise. No Conditions or Contingencies: Without limiting the generality of the foregoing, you acknowledge and agree (i) that the completion of the sale following the conclusion of the auction is not contingent upon any inspection or verification of any such information, and the Closing Date or Closing Time (as defined below) will not be extended in order to permit any such inspection or review; (ii) that neither the Seller nor the Auctioneer nor any broker participating in the transaction to which this auction relates shall have any liability for any relief, including damages of any kind, rescission or reformation of the Purchase Contract (as defined below) or adjustment to the terms of the Purchase Contract based upon any failure of the property to conform to any description contained in the Property Information Package, or to any standard or any expectation that you may have in connection with the property; and (iii) that the completion of the sale is not subject to any financing or other contingency of any sort. You represent and warrant that by registering to bid and bidding during this auction, you have conducted all necessary investigations, and have determined to place a bid relying solely on your own independent investigation or verification of material facts concerning the sale and the suitability of the property for your intended use if you are the successful bidder. Registration and Verification: In order to bid at this auction, you will be required to register at the Tranzon website, www.tranzon.com (the “Tranzon website”). All Bidders seeking to register for this auction must be eighteen (18) years of age or older, must be eligible to bid in the Auctioneer’s sole discretion based on the Auctioneer’s past experience with the registering bidder or otherwise, and are subject to verification through credit card information that must be provided in the registration process. You will be asked to provide credit card information for this purpose, and we will use a third party service or other process to verify that your credit card is valid and has available credit. When your registration to bid on this auction has been approved, you will receive an email notification that you have been approved for bidding. If we are unable to verify your credit card, you will have no rights to bid at this auction, and your registration will be deemed to be not accepted and/or terminated or extinguished without notice. In addition, bidding rights are not absolute, and all registrations, even if successfully verified by credit card as described above, are subject to manual verification at any time, and from time to time, by the Auctioneer. We may suspend or terminate your registration for this auction at any time, and for any and all reasons or for no reason, in our sole discretion. We will notify you by email if your approval to bid at this auction has been terminated or suspended. Bidding Time: This auction is a timed auction event. Bidding is scheduled to begin and close at the times set forth on the Tranzon website. All time references on the bidding site for Tranzon online auctions are expressed in Eastern Time, and you should therefore be mindful of the need to convert to local time when bidding on auctions of properties located in other time zones. It is your responsibility to check the Tranzon website carefully so that you are aware of the scheduled closing time. Extended Bidding Time: Notwithstanding the scheduled closing time for this auction, in the event that a bid is made at any time during the final four (4) minutes of the scheduled bidding time, the bidding time will automatically be extended for an additional four (4) minutes. For example, if the bidding is scheduled to close at 3:00 PM ET, and a bid is placed at 2:58 PM ET, the bidding will be extended until 3:04 PM. Subsequent and additional extensions shall be applied to any and all bids placed during any such extension period until an extension period has expired without additional bids being placed, at which time the bidding time, as extended, shall be closed. The number of minutes (four (4) minutes) of Extended Bidding Time described in this paragraph may vary in the sole discretion of the Auctioneer and may be fewer or more than four (4) minutes, all as set forth in the Additional Terms and Conditions. Because of the possibility of extended bidding time, Bidders should continue to participate in the auction until receiving notification that the auction has closed and, in the case of a presumed High Bidder, until receiving a notification of the amount of the high bid as of the time of closing of the auction. Bidder Responsibility: Bidders must take care in entering bids, and each Bidder will be responsible for all bids placed under the Bidder’s approved registration. Once entered and recorded online, a bid is deemed to be final on behalf of the registered Bidder and may not be modified, retracted or rescinded in whole or in part. Bid Increments: Once bidding has commenced, any advances on a bid must be made in increments at least as great as those which we, in our sole discretion, have determined. We may, in our sole discretion, change or modify the required bid increments from time to time, or at multiple times, during the auction. We also provide opportunities for a bidder to submit a maximum bid amount (often called a “max bid”) and to direct that our website bid on such

bidder’s behalf in scheduled increments until the maximum amount identified by the bidder has been reached. In the event that you later enter a max bid with the same maximum bid amount as was previously authorized by another bidder’s max bid, or enter a specific bid in the same amount as was previously authorized by another bidder’s max bid, the other bidder’s max bid as previously entered before your bid will be deemed to be the prevailing bid at that amount, and you will be deemed to be outbid. In the event that there should be any dispute among competitive bidders with regard to the identity or amount of the high bid, the Auctioneer may reopen bidding on the property and may, in conjunction with such reopening of the bidding, designate one of the bidders as the “High Bidder” in the Auctioneer’s sole discretion. All decisions by the Auctioneer shall be final. Technical Problems: We have made reasonable efforts to provide for online bidding for this auction. You recognize and acknowledge, however, that technical problems with hardware, software, or internet connectivity, as well as human errors, may arise and may affect, without limitation, the Tranzon website, our online bidding program and process, your or our internet service and access, and your connection to this auction’s bidding program and process. You further acknowledge that these and other technical problems may develop at any time and with or without notice. You acknowledge and agree that neither we nor the Seller is in any way responsible for any such technical problems, and that you have no absolute or other right to be able to bid on this auction in the event of any such technical problems. Notwithstanding the foregoing, you further acknowledge and agree that, in the event of any such technical problems, we reserve the right to postpone or cancel the auction and/or extend the bidding time for this auction and/or relist the property for auction at another time, in our sole discretion, and that our decision with regard to any such actions is and will be final. Terms Specific to This Auction or Property: As noted above, the Auctioneer may provide Additional Terms and Conditions that are specific to this auction or the property or properties being sold at this auction. Without limiting the generality of the foregoing, such Additional Terms and Conditions may, but shall not necessarily be required to, relate to the following provisions, among others: extended bidding time; and bid increments. Bid Deposit: A bid deposit in an amount set forth on the Tranzon website or as communicated by the Auctioneer in the Additional Terms and Conditions may be required in order to bid. Any such deposit may be required in the form of a credit card authorization or actual funds, which the Auctioneer may hold until the completion of bidding and for a reasonable period of time to allow for the release of any such deposit and/or the return of any such funds after the conclusion of the auction. Earnest Money Deposit: If you are the successful bidder, you may then be required to tender an additional deposit in the form of a cashier’s check or wire transfer, within 24 hours or such other time as may be specified by the Auctioneer following the close of the auction, to be held by the Auctioneer or a designated escrow agent, all as set forth on the Tranzon website or in the Additional Terms and Conditions. Purchase Contract: If you are the successful bidder, you will be required to sign a purchase and sale agreement or similar agreement or document, however captioned or titled (the “Purchase Contract”) and other necessary documents in the form designated by, and within the time periods established by, the Auctioneer, generally 24 hours. The terms of the Purchase Contract are expressly not negotiable and the Purchase Contract must be signed in the name of the high bidder and, except as may specifically be permitted by the terms of the Purchase Contract or expressly agreed upon in writing by the Seller or Auctioneer in their sole discretion, may not be assigned to any other person or party. The Purchase Contract and such other documents will set forth the specific terms and conditions of the sale, including the time by which the high bidder’s purchase of the property must be completed. Copies of some or all of these documents are available on the Tranzon website or may be obtained from the Auctioneer, and it is your responsibility to obtain, read, and understand the provisions of any such documents before bidding at this auction. The Seller’s obligations to the successful bidder are exclusively as set forth in the Purchase Contract. Buyer’s Premium: A buyer’s premium (“Buyer’s Premium”) in a percentage specified by the Auctioneer as noted on the Tranzon website or in the Additional Terms and Conditions may be added to the successful bidder’s highest bid price. Any such Buyer’s Premium shall become part of the total purchase price in the Purchase Contract, and must be paid by the successful bidder. Closing: All sales must close within a period of time (the “Closing Time”) or on a date certain (the “Closing Date”) set forth in the Purchase Contract, unless extended by the Seller in writing. Unless otherwise provided in the Purchase Contract or other documents pertaining to this particular auction, any extensions shall be requested in writing not later than five (5) days before expiration of the Closing Time or the scheduled Closing Date, as the case may be, and any such requests may or may not be considered by the Seller and granted by the Seller in the Seller’s sole discretion. In preparation for the closing, the balance of the purchase price and any and all other funds necessary to complete the purchase must be provided by the successful bidder to the Seller or its closing agent(s), in immediately available funds or by wire transfer as directed by the Seller’s closing agent(s), not later the forty-eight (48) hours before the scheduled closing or at such other time as may be expressly designated by the Seller’s closing agent(s). High Bidder’s Default: Successful Bidders who fail to close in a timely manner for any reason shall be required to release their deposit(s) to Seller as partial and nonexclusive liquidated damages and not as a penalty, and the Seller retains the unilateral right to cancel any escrow and retain the successful bidder’s deposit in the event the successful bidder fails to complete the purchase as required by the terms of the Purchase Contract. In addition, in the event the successful bidder fails to submit the executed Purchase Contract and any required earnest money deposit as required by these Terms and Conditions and any Additional Terms and conditions, the successful bidder agrees to pay to the Auctioneer a fee of Five Thousand Dollars ($5,000) or such other amount as may be specified in any Additional Terms and Conditions, which amount may be paid by retention of the high bidder’s deposit check in the sole discretion of the Auctioneer. A successful bidder who fails to submit an executed Purchase Contract, fails to make any required earnest money deposit, or fails to close in a timely manner may also be prohibited from bidding on future auctions conducted by the Auctioneer or the Auctioneer’s affiliates, in the discretion of the Auctioneer and any such affiliate or affiliates. These remedies are in addition to any other remedies, including specific performance, and/or additional money damages that the Seller and/or the Auctioneer may have in equity or at law. The Auctioneer and the Seller also reserve the right immediately to put the property up for sale again. General Terms and Conditions: You acknowledge and understand that the Auctioneer reserves the right, for any reason or for no reason in the Auctioneer’s sole discretion, (i) to determine who has access to and who may bid at this auction, (ii) to postpone or cancel the auction, (iii) to withdraw the property or any one or more properties from the auction, (iv) to change any terms of the auction or particular conditions of sale upon announcement prior to or during the course of the auction, (v) to bid on behalf of the Seller up to the amount of any reserve price, where permitted by law, (vi) to reject any and all bids, and (vii) to select the winning bid. You further acknowledge that neither the Seller nor the Auctioneer nor any broker involved in this auction is making any representation or warranty as to the manner in which the sale process will be managed, and that, except as may otherwise be provided by law, any acceptance of a winning bid prior to the execution of a binding Purchase Contract may be rescinded by the Seller in the Seller’s sole discretion and for any reason whatsoever including the receipt of a subsequent bid, and that the Seller’s obligation to sell any property or properties in this auction shall not be binding until such final Purchase Contract is signed and delivered by the Seller and the winning bidder. The Auctioneer may sell the property or any one or more properties subject to this auction in advance of the auction, in the Auctioneer’s sole discretion. The sole and exclusive venue for any disputes regarding or relating in any way to this auction or the transactions made in conjunction with this auction shall be in the state courts of general jurisdiction located in the jurisdiction where the property that is subject to this auction is located, or if more than one such jurisdiction is related to such property or properties, in any one of such jurisdictions as the Auctioneer may select, or, at the election of the Seller in its sole discretion in any jurisdiction where the Seller maintains a principal or other place of business, and you irrevocably submit to the jurisdiction of such courts.

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By bidding at the online Auction, you are agreeing to the followingterms and conditions in respect to the real property that is thesubject of the sale (the “Property”):IDENTIFICATION:The identity of all bidders will be authenticated through the credit cardinformation provided during registration. Bidding rights are provisional,and if complete verification is not possible, Tranzon Fox will terminate theregistration, and bidding privileges will be halted. At the conclusion ofbidding, Successful High Bidder will be notified and will receive Purchaseand Sale Agreement and instructions on how to complete the transaction.

CONTRACTS AND DEPOSITS:$589,000 disclosed minimum bid amount applies to FX1869-All, Entiretyoffering only. Auction is not over until all rounds of bidding have beencompleted and Auction Firm announces the winner(s). The successfulbidder (the “Buyer”) must sign a sales contract and all other documentsspecified by Tranzon Fox immediately upon conclusion of the auction. Aminimum non-refundable deposit of ten percent (10%) must be madewithin 48 hours of being notified that you are the successful high bidder.The Buyer’s deposit will be retained by Tranzon Fox and applied to theBuyer’s credit at settlement. Tranzon Fox reserves the right to waive ormodify the above deposit requirement at any time.

BUYER’S PREMIUM:A buyer’s premium of ten percent (10%) shall be added to the successfulbidder’s high bid and included in the total purchase price to be paid bythe successful bidder.

PROPERTY SOLD “AS IS, WHERE IS, WITH ALL FAULTS” WITHOUTREPRESENTATION OR WARRANTY OF ANY KIND:The Property shall be sold subject to all conditions, restrictions, right-of-way easements, and reservations, if any, of record, filed and unfiledmechanics and materialmen’s liens, if any, and all other matters of recordtaking priority, subject to the rights, if any, of tenants-in-possession, andfurther subject to all conditions announced at sale; and confirmation ofthe sale by the Seller. The property, and all the improvements to theproperty, if any, shall be conveyed in "as is" condition and withoutwarranty of any kind, including any warranty as to the physical condition,extent of zoning, or environmental conditions (including, withoutlimitation, the existence of radon gas, formaldehyde gas, airborneasbestos fibers, toxic chemicals, underground storage tanks, lead, moldor other pollutants in the soil, air or water).

REAL ESTATE CLOSING:The Buyer must close the sale of the Property within 45 days (or sooner ifnoted in specific terms and conditions). Time is of the essence. Theentire purchase price must be paid by cashier’s or certified check,attorney’s escrow check, or wired funds at closing. The Buyer’s purchaseof the Property is not contingent on financing. The Property will beconveyed to the Buyer by deed upon full payment of all amounts dueunder the Agreement.

SETTLEMENT COSTS & PRORATIONS:Ad valorem real estate taxes, rent, heating fuel and other apportionableitems (if any) will be prorated at settlement. Seller shall pay the grantorstax, cost of preparing the deed and its own closing costs; all otherrecording costs, state and local transfer taxes, recordation taxes, fees,and closing expenses shall be paid by Purchaser. Each party heretoshall be responsible for paying its own legal fees incurred under thisContract, whether or not closing occurs.

AGENCY:The Auctioneer/Tranzon Fox is acting as agent on behalf of the Seller(s)only, and reserves the right to protect the Seller’s interest by bidding asagent, unless the Property is being sold absolute to the highest bidder.Tranzon Fox is not responsible for the acts of his agents or principals.During bidding, the Auctioneer has the right to reject any bid that, in hisopinion, is not commensurate with the Property value. In the event of anydispute after the sale, Tranzon Fox’s determination shall be conclusive.

PERSONAL PROPERTY:Unless stated otherwise, only the Real Estate is being sold. Any personalproperty left in the property upon settlement conveys with the real estate.Seller is not obligated to leave property in “broom clean” condition.

MEGAN’S LAW DISCLOSUREPurchaser(s) should exercise whatever due diligence they deemnecessary with respect to information on any sexual offenders registeredunder Chapter 23 (19.2 – 387 et. seq.) of Title 19.2. Such informationmay be obtained by contacting your local police department or theDepartment of State Police, Central Criminal Records Exchange, at 804-674-2000 http://www.vsp.state.va.us/

LEAD BASED PAINT:The ten (10) day inspection period for residential property is prior to theauction, and the opportunity is hereby waived from and after the date andtime of auction.

REAL ESTATE BROKERS:A commission (as stated in the Property Information Package) calculatedon the successful Buyer’s high bid shall be paid from the proceeds of saleto the licensed, qualified broker, whose properly registered Buyer is thesuccessful bidder at the auction, and whose Buyer completes thepurchase of the Property. Brokers must register their prospective Buyeron the required form completely filled out and signed. In the event acommission reduction is required to consummate a sale, Tranzon Foxreserves the right to proportionately reduce the commission herein. Theform is included in the Property Information Package or may be obtainedby calling 757-473-3000 and must be submitted to Tranzon Fox no laterthan 4 pm on the last business day prior to the Auction. Fax thecompleted form to 757-473-9787.

ADDITION OR WITHDRAWAL FROM SALE; CONDITION OF SALE:The sale of the real Property shall be contingent upon the Sellerconfirmation, unless the sale is specified as absolute at the time of sale.Tranzon Fox reserves the right to withdraw from sale the Property listed,and also reserves the right to group one or more properties into one ormore selling lots or to subdivide into two or more selling lots. Tranzon Foxreserves the right to cancel the auction sale up to the time prior to thecommencement of bidding. All properties are sold in gross in all cases. Ifa subsequent survey by the Buyer shows a greater or lesser number ofacres or square footage this will not affect the purchase or purchaseprice.

RIGHTS:Seller and Tranzon Fox reserve the right to announce additional termsand conditions at the time of the sale, which additional terms andconditions will be binding upon the Buyer and the Seller(s). Allannouncements made the day of sale take precedence over anyconflicting prior written or verbal terms of sale. The Buyer will acquire theProperty(s) subject to the rights of all parties in possession. If anyconditions contained herein are not complied with by the Buyer, Sellermay, in addition to asserting all remedies available by law, including theright to hold the Buyer liable for the purchase price, either (a) cancel thesale, retaining as liquidated damages any payment made by the Buyer;(b) resell the Property at public auction; or (c) take such other action as itdeems necessary or appropriate. The retention of the bidder’s depositshall not limit any rights or remedies of Tranzon Fox or the Sellers withrespect to the Buyer’s default. If the Property is resold, the Buyer shall beliable for payment of any deficiency in the purchase price and all costsand expenses of both sales, reasonable attorney’s fees, commissions,incidental damages and all other charges due hereunder.

JURISDICTIONS:The respective rights and obligations of the parties with respect to theTerms and Conditions of Sale and the conduct of the auction shall begoverned and interpreted by the laws of the State of North Carolina. Bybidding at any auction, whether present in person or by agent, by writtenbid, or other means, the Buyer shall be deemed to have consented to thejurisdiction of the state and federal courts sitting in the State of NorthCarolina. Any controversy or claim arising from or relating to the contractor any breach of such contract shall be settled by arbitration administeredby the American Arbitration Association under its rules, and judgment onthe award rendered by the arbitrator may be entered in any court havingjurisdiction thereof. This auction is conducted by Tranzon Fox acting asauctioneer/listing agent. Tranzon Fox is solely responsible for the termsand conditions of this auction and the manner in which it is conducted.Tranzon Fox is a member company of Tranzon, L.L.C., is independentlyowned and operated, and uses the Tranzon name by license fromTranzon, L.L.C., which is not conducting or otherwise involved in thisauction.

ADDITIONAL TERMS AND CONDITIONS OF SALEFX1869 - S. Croatan Highway/US 158, Nags Head, NC 27959

When should I register for an online auction?We recommend that you register as soon as possible. This allows you to become familiar with the online process and makes things easier when the auction opens.

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Am I obligated to bid once I register?You are under no obligation to bid once you register. Registering for the auction gives you the option to bid, but nothing else.

If you ask for my credit card number during the registration process, do you actually charge my card?Your credit card will be used as part of the authorization process. We will not charge your credit card.

Where do I register?

You can register for an online auction through the Tranzon website. Simply go to www.tranzon.com and click “Online Auctions” in the Search area. Find the auction you are interested in and click the green button that says “Login & Register to Bid” and then the green button that says “Register to Bid.” Then, simply follow the instructions to register. After your registration has been approved, you will be notified of your approval either immediately on the registration site, or by email notification, or both. After you have received that notification, you can return to the auction at any time when bidding is open, login, and click “Bid Now” to bid.

When will the auction start? When will bidding end?Bidding on any Tranzon online auction will begin and end at the times clearly shown on the listing page on the Tranzon website and in the Property Information Package for the particular auction. Please be careful to note that all times are expressed in Eastern Time (ET, meaning either Eastern Standard Time or Eastern Daylight Saving Time, depending on the season), so be sure to convert to local time for auctions in the Central, Mountain, or Pacific Time Zones.

Where can I find additional information on a property?In our Property Information Package (PIP), which you can download from the Tranzon website. Actually, we require that you download a PIP and assure us that you have done so when you accept the terms and conditions for your auction. To download a PIP for the auction of your choice, start on the listing page for that auction, look under the yellow box for “Documents to download” and click the link for the Property Information Package. You may also download any other documents that might be available for the auction in which you are interested.

Should I wait until the last minute to bid?You can certainly bid whenever you choose during the time that bidding is open. We recommend, however, that you not wait until the last minute to bid, in order to make sure that you do not miss an opportunity to bid because of technical or other issues that might arise. There is no particular advantage to waiting until the very last moment, as all Tranzon auctions feature an anti-sniping extension called auto-extend (see below) that limits a bidder’s ability to be the winning bidder by submitting a bid at the very last moment.

What is the auto-extend feature?If someone bids within the last few minutes of the auction, the timer for the auction will automatically extend. Typically, the time periods are: any bid within the last 4 minutes of the auction will extend the bidding for an additional 4 minutes. These “auto-extend” time periods may change for particular auctions, however, so be sure to check the auto-extend times for your particular auction, which will be clearly noted in the “Additional Terms and Conditions” for the auction. The extension process will continue happening until no further bids are taken before the closing time, as extended. For example in an auction with a 4 minute auto-extend provision, if bidding is scheduled to close at 11:00 AM and you bid at 10:59 AM, the bidding will automatically be extended for an additional 4 minutes, until 11:04 AM. If someone then bids at 11:02 AM, the bidding will extend again, for 4 additional minutes, until 11:08 AM … and so forth until no bids have been taken before the closing time for bidding, as extended.

What is the maximum bid feature?The maximum bid feature allows you to put into the system your highest bid. The system will then bid on your behalf in the next increment up to but not exceeding that number. If no one bids against you the system will not further raise your bid. Max bidding is kind of a “set it and forget it” bid, but you will want to stay tuned to see if other bidders have exceeded your maximum.

What happens if two people enter the same maximum bid?If two bidders enter the same number as a max bid, the bidder who entered the max bid first will be considered the current high bidder at the full max bid amount (tie goes to the runner, in this case to the max bidder who was first-in-time to enter the max bid at that amount). For this reason if you plan to enter a maximum bid we recommend you enter it as soon as possible once the bidding starts.

After I have entered a maximum bid, what happens when someone enters a manual bid that is less than my max bid, or at the same level as my max bid?After you have entered a max bid, if another bidder enters a specific (manual) bid at an amount less than your max bid, your bid will be advanced to the next increment higher than the other bidder’s manual bid, subject always to not exceeding your max bid amount. If the other bidder enters a manual bid in the same amount as your previously-registered max bid, your max bid will match the manual bid and your max bid will be considered the high bid at that amount because it was entered earlier than the later manual bid at that same amount (again, tie goes to the runner, in this case the max bidder who had previously entered a max bid at that amount instead of the bidder who entered a manual bid at the same amount).

I won, what happens next?An agent from our office will either call or email you soon after the auction bidding closes, typically, within 24 hours.• If the auction did not have a reserve and did not require seller

confirmation, our agent will provide you with instructions on increasing your deposit, scheduling the closing, and other post-auction details.

• If the auction was subject to a reserve or required seller confirmation, our agent will advise whether your high bid has been accepted. If your high bid is accepted, we will provide you with instructions on increasing your deposit, scheduling the closing, and other post-auction details. If your high bid has not been accepted, we will advise you as to the next steps. Any bidder may make post auction offers on the property through Tranzon agents.

Online Auctions FAQs

What if I have further questions?Call the Tranzon company conducting the auction in which you are interested. Telephone and email contact information can be found on the Tranzon website at www.tranzon.com. Our auction professionals will be always happy to help with any questions that you might have.

REMIT TO: Tranzon FoxPROPERTY # FX1869 121 Pennsylvania AvenueBIDDING CLOSES: April 25, 2017, 1:20pm ET Virginia Beach, VA 23462

(800) 868-0458 FAX (757) 473-9787vabeach@tranzon.com

PROPERTY ADDRESS S. Croatan Highway/US 158, Nags Head, NC 27959

PROSPECTIVE BUYER NAME _________________________________________

PROSPECTIVE BUYER ADDRESS _________________________________________

PROSPECTIVE BUYER PHONE # _________________________________________

This shall serve as written notice to register the above referenced Prospective Buyer with Tranzon Foxwith respect to the above referenced property to be sold at Public Auction on the above referenced date.

It is understood and agreed that the broker commission will be governed in accordance with the Termsand Conditions of Sale or Foreclosure Notice (whichever is applicable) as set forth in the informationpackage. A commission of 2% of the high bid will be paid to the registered broker named herein if: a)this Broker Acknowledgment Form is properly completed and submitted; b) the Prospective Buyer namedherein is the highest bidder at the Auction Sale; and c) the Prospective Buyer named herein as thehighest bidder at the Auction Sale executes a Contract of Sale and closes on the sale of the subjectproperty in accordance with the terms of the aforesaid Contract of Sale. Agents/Brokers acting asprincipals or employees, affiliates or immediate family members are not eligible for this commission. In theevent a commission reduction is required to consummate a sale, Tranzon Fox reserves the right toproportionately reduce the commission to Buyer’s agent. If Tranzon Fox is required to litigate to collectthe commission, reasonable attorney’s fees and costs shall be deducted from the gross commissioncollected and the balance shall be divided proportionately. In order to be effective, all BrokerAcknowledgment Forms must be received by Tranzon Fox no later than 24 hours prior to the scheduledclose of the auction.

ACCEPTED:

__________________________________ ___________________________________Broker/Manager Signature Date Agent Signature Date

__________________________________ ___________________________________Broker/Manager Name Printed Agent Name Printed

Brokerage License No._______________ Agent License No. _______________

___________________________________ Agent Email

___________________________________ ___________________________________Buyer Signature Date Real Estate Brokerage Name

_________________ _________________ Phone Fax

RECEIVED BY TRANZON FOX:

By________________________________ Date_______________________________

REV 072611

BROKER ACKNOWLEDGMENT FORMMust be received by Tranzon Fox no later than 24 hours prior to the scheduled close of the auction

CONTRACT FOR SALE OF REAL ESTATE

This Contract for Sale of Real Estate is made as of April 25 , 2017, between Annette F.Wood and M.H. Hood Ellis, Executor to the Estate of John Gilliam Wood, III (“Seller”) and__________________________________________ and/or assigns*(“Purchaser”). (* for assignment terms see paragraph 12)

W I T N E S S E T H: In consideration of the deposit of $_____________________ (the “Deposit”) due by 5:00 PM, April 27,2017 and the mutual covenants hereinafter provided, Seller agrees to sell, and Purchaser agrees tobuy, the following parcel of real estate together with any improvements thereon, commonly known as:

(the “Property”). The purchase and sale ofthe Property shall be on the following terms and conditions:

1. Auction Terms and Conditions. The Auction Terms and Conditions (the “Auction Terms”) andannouncements made prior to the auction concerning the terms and conditions, shall be deemed part ofthis Contract as if set forth in this Contract in their entirety. In the event of a conflict between the termsand conditions of this Contract and those of the Auction Terms, the terms and conditions of the AuctionTerms shall govern.

2. Purchase Price. Purchaser agrees to pay as the full purchase price for the Property the sumof $_______________________ (the “Purchase Price”), as follows:

(a) Purchaser shall pay the Deposit to the Auction Firm in cash or as may be otherwise agreed by theAuctioneer upon the execution of this Agreement. Auction Firm shall hold the Deposit and shall (i) payit over to Seller at settlement for application to the payment of the Purchase Price, (ii) return it toPurchaser when instructed to do so by Seller upon the conditions set forth herein, or (iii) in the event ofPurchaser’s default and at Seller’s option, pay it over to Seller for application as set forth in Paragraph8 below. Any interest accruing on the Deposit while held by the Auction Firm shall be retained by theAuction Firm. Demand Note: If any portion of the deposit is made with a personal check, this contractwill constitute Purchaser's personal demand note guaranteeing the check. Should Seller orAuctioneer/Broker be required to pursue collection on this check or enforcement of this contract, thecost of such collection and Sellers'/auctioneer's reasonable attorney fees will be Purchaser's expense,all unpaid amounts shall accrue interest at a rate of 1.5% per month (18% per year) until said amount isfully collected.

(b) Purchaser shall pay the remainder of the Purchase Price to Seller at settlement in cash, by wiretransfer or by certified or cashier’s check.

(c) Purchaser acknowledges that the Purchase Price includes a Buyer’s Premium of ten percent(10%). A summary of the terms of the sale is as follows:

High Bid $______________________

Buyer’s Premium Plus $______________________

Purchase Price Equals $______________________

Deposit Less $______________________

Balance of Purchase Price Due at Settlement Equals $______________________

3. Settlement and Possession. Settlement shall take place on or before Friday, June 9, 2017, at the offices of Rose Harrison & Gilreath, P.C, James R. Gilreath, Jr , who shall be the settlement agent in connection with this transaction for tax reporting purposes. Possession of the Property shall be delivered to Purchaser at settlement following payment of the Purchase Price, subject to the rights of tenants, if any. TIME IS OF THE ESSENCE AS TO THE COMPLETION OF SETTLEMENT.

4. Title. Seller shall convey the Property to Purchaser by Special Warranty Deed. Purchaser’sand Seller’s obligations hereunder are contingent upon Seller being able to convey good andmarketable title to the Property subject, however, to the following (the “Permitted Encumbrances”): (i)matters that do not render title to the Property unmarketable; (ii) the rights of tenants, if any; (iii) the lienof ad valorem real estate taxes not yet due and payable; (iv) such state of facts as an accurate surveyand physical inspection of the Property would reveal; and (v) ordinary and customary easements,encumbrances and other restrictions of record. If, prior to settlement hereunder, Purchaser identifies atitle defect other than the Permitted Encumbrances, Seller shall have the opportunity, but not theobligation, to attempt to cure the title defect, and Seller may in its sole discretion extend the settlementdate accordingly. If Seller does not elect to attempt to cure the title defect, or if Seller attempts but isnot successful in curing the title defect, Purchaser shall have the option to; (1) terminate thisAgreement, in which case Seller shall instruct the Auction Firm to return the Deposit (less any accruedinterest) to Purchaser and neither party shall have any further obligation or liability to the other; or (2)waive the title defect and proceed to settlement hereunder, without any adjustment or modification ofthe Purchase Price. If an owner’s title insurance policy can be obtained without extraordinary exceptionor with affirmative protection over any title defect, Purchaser shall be required to waive its objection tothe title defect.

5. Proration at Settlement and Settlement Costs. Ad valorem real estate taxes, rent, heatingfuel and other apportionable items (if any) will be prorated at settlement. Seller shall pay the grantor’stax, transfer tax and the cost of preparing the deed; all other recording costs, taxes, fees, and closingexpenses shall be paid by Purchaser. Purchaser shall pay for cost of survey if required. Each partyhereto shall be responsible for paying its own legal fees incurred under this Contract, whether or notclosing occurs.

6. Eminent Domain. In the event of a taking of the Property or any portion thereof by eminentdomain after the date hereof but before settlement, Purchaser shall, within ten (10) days of the taking,either (i) terminate this Contract by written notice to Seller, in which event Purchaser shall be entitled tothe return of the Deposit (less any accrued interest) and neither party shall have any further liability tothe other, or (ii) elect to proceed to settlement without a reduction in the Purchase Price, in which eventSeller shall convey to Purchaser the portion of the Property not taken and shall assign to Purchaser allof Seller’s right, title, and interest in any condemnation award arising from and pertaining to the takingof the Property.

7. Physical Condition of the Property. (a) Purchaser acknowledges that it has examined and inspected, and is satisfied with, the physicalcondition of the Property and the improvements thereon and agrees to accept them in substantially thesame physical condition as at the time of this agreement. PURCHASER EXPRESSLY AGREES THATTHE PROPERTY IS OR WILL BE SOLD “AS IS, WHERE IS, WITH ALL FAULTS”, WITHOUT ANYWARRANTY OR REPRESENTATION, EXPRESS, IMPLIED, OR ARISING BY OPERATION OF LAW,INCLUDING, BUT NOT LIMITED TO, ANY WARRANTY OF CONDITION, HABITABILITY,MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE, AND SUBJECT TO ORDINARYWEAR AND TEAR OCCURRING AFTER THE DATE HEREOF. Purchaser further acknowledges thatneither Seller nor Auction Firm have made or extended to Purchaser any representation, warranty orindemnity with regard to the environmental condition of the Property or with regard to its compliancewith the Americans with Disabilities Act of 1990, if applicable, and Purchaser hereby assumes soleresponsibility therefor, indemnifies and agrees to hold Seller and Auction Firm, and each of theiraffiliates, agents, directors, employees and attorneys harmless from and waives any right, action, claimor cause of action it or its successors or assigns may have now or in the future against Seller andAuction Firm, and each of their affiliates, agents, directors, employees or attorneys with regard thereto.

(b) If the improvements on the Property are damaged after the date hereof but before settlement,

Seller may (but shall not be obligated to) attempt to repair the improvements and, at Seller’s soleoption, there shall be a reasonable extension of the settlement date in which Seller may attempt tocomplete the repair. If Seller notifies Purchaser that Seller does not intend to attempt repair, or if Sellerattempts but is not successful in effecting repair and so notifies Purchaser, within ten (10) days of eithersuch notification Purchaser shall either (i) terminate this Agreement, in which case Purchaser shall beentitled to the return of the Deposit (less any accrued interest) and neither party shall have any furtherliability to the other, or (ii) waive any objection to the damage and any right to reduce the PurchasePrice, in which case Seller shall convey to Purchaser the Property with such damaged improvementsas are then thereon and shall assign to Purchaser all of Seller’s right, title and interest to any insuranceproceeds, if any, received or to be received in payment of damage to the improvements (but no otherinsurance proceeds, such as proceeds from damage to personal property).

8. Default. If Purchaser defaults hereunder, Seller may retain the Deposit and may also pursuesuch remedies as are available to Seller at law or in equity, including, without limitation, an action forspecific performance. If Seller defaults hereunder, Purchaser may pursue such remedies as areavailable to Purchaser at law or in equity, including, without limitation, an action for specificperformance. A termination of this Contract pursuant to the termination provisions set forth inparagraph 4, 6, and 7, shall not be deemed to be a default of either party hereunder.

9. Notice. Any notice, request, or demand required or permitted hereunder will be in writing and will be delivered by hand, sent by express courier service, or sent by U. S. certified mail, return receipt requested, postage prepaid, if to Seller to Hornthal, Riley, Ellis & Maland, L.L.P, 301 East Main Street, Elizabeth City, NC 27909 with a copy to Tranzon Fox, 121 Pennsylvania Avenue, Virginia Beach, Virginia23462, and if to Purchaser, to the address set forth below under the Purchaser’s signature, or to such other address as the party to receive such notice may hereafter specify by written notice to the other. Any such notice will be deemed given on the date of actual hand delivery, one (1) day after being sent by express courier service or two (2) days after deposit in the U. S. mail, certified.

10. Agency Disclosure. Seller and Purchaser acknowledge and agree that the Auction Firm andits agents and broker(s) have acted on Seller’s behalf as Seller’s agent in connection with thistransaction. Seller and Purchaser also confirm that this disclosure of agency relationship has beenmade in writing.

11. Electronic Signatures. In accordance with the Uniform Electronic Transactions Act (UETA)and the Electronic Signatures in Global and National Commerce Act, or E-Sign (the Act), and otherapplicable local or state legislation regarding Electronic Signatures and Transactions, the parties dohereby expressly authorize and agree to the use of electronic signatures as an additional method ofsigning and/or initialing this Contract. The parties hereby agree that either party may sign electronicallyby utilizing a digital signature service.

12. Miscellaneous. Except as set forth above, each party hereto represents that it has notinvolved any agent, broker, or finder in this transaction other than __________ and agrees toindemnify, defend, and hold the other party and the Auction Firm harmless from any claim in connectiontherewith. The provisions of this Contract shall survive settlement. The parties hereto acknowledgethat neither has relied upon any oral representation of the other or of the Auction Firm, that no such oralrepresentation will affect in any way the terms of this Contract and that this Contract represents the finaland complete understanding between the parties. This Contract cannot be modified or amended, andno waiver or any provision hereof shall be effective, unless in writing executed by the parties hereto.This Contract shall be construed, performed and enforced in accordance with the laws of the State ofNorth Carolina without regard to the conflicts of laws provisions of Virginia law. Except as provided inParagraphs 6 and 7, the risk of loss or taking shall remain with Seller until settlement. This Contractshall inure to the benefit of and will bind the parties hereto and their respective heirs, personalrepresentatives, successors and assigns. Purchaser may not assign its rights under this Contract,except to an entity in which Purchaser owns at least 50% of that entity, without the prior written consentof Seller and Auction Firm, which consent Seller and/or Auction Firm may withhold in their sole andabsolute discretion. Any such assignment to which Seller and Auction Firm consent shall not releasePurchaser from any liability hereunder. This Contract may be executed in two or more counterparts,each of which shall be deemed an original, but all of which together shall constitute one and the same

Contract. Notwithstanding any other provision of this Agreement, or any agreements, contracts orobligations that may derive herefrom, nothing herein shall be construed to make the parties heretopartners or joint ventures or to render either party liable for any of the debts or obligations of the otherparty, it being the intention of this Contract merely to create the relationship of seller and purchaser withregard to the Property. All parties to this Contract have been represented by counsel or have had theopportunity to be so represented. Accordingly, the rule of construction of contract language against thedrafting party is hereby waived by both parties. If any provision of this Contract or the applicationthereof is deemed unenforceable for any reason, the remainder of this Contract shall not be affectedthereby and shall remain in full force and effect. Notwithstanding any mention of specific acreage inany description of the Property, the parties hereby agree that the Property is being sold in gross and notby the acre. Improvements are being sold by the property and not the measureable area of theimprovement. The purchase price and the parties’ rights and obligations hereunder shall not be affectedif a subsequent survey of the Property reveals a different acreage or size. Any personal propertyremaining on the property at settlement will convey unless specifically noted in this agreement. TIME ISOF THE ESSENCE IN CONNECTION WITH THIS CONTRACT.

WITNESS the following signatures and seals:

SELLER: PURCHASERS:

_________________________ _______________________(SEAL)Annette F. Wood

______________________________ (SEAL)M.H.Hood Ellis, Executor

ADDRESS/TELEPHONE:

_________________________________

_________________________________

_________________________________

ATTORNEY NAME/TELEPHONE:James R. Gilreath, Jr.Rose Harrison & Gilreath, P.C.Deliveries: 700 Blue Jay St., Ste 1Mail: P.O. Box 405Kill Devil Hills, NC 27948252.480.1414252.480.1765 (fax)outerbankslaw.com

dual agent). Or you may agree to let them represent only the seller (seller’s agent or subagent). Some agents will offer you a choice of these services. Others may not.

Buyer’s Agent

Duties to Buyer: If the real estate firm and its agents represent you, they must • promote your best interests • be loyal to you • follow your lawful instructions • provide you with all material facts that could influence your decisions • use reasonable skill, care and diligence, and • account for all monies they handle for you. Once you have agreed (either orally or in writing) for the firm and its agents to be your buyer’s agent, they may not give

Dual Agent

You may even permit the listing firm and its agents to represent you and a buyer at the same time. This “dual agency relationship” is most likely to happen if an agent with your listing firm is working as a buyer’s agent with someone who wants to purchase your property. If this occurs and you have not already agreed to a dual agency relationship in your listing agreement, your listing agent will ask you to sign a separate agreement or document permitting the agent to act as agent for both you and the buyer.

It may be difficult for a dual agent to advance the interests of both the buyer and seller. Nevertheless, a dual agent must treat buyers and sellers fairly and equally. Although the dual agent owes them the same duties, buyers and sellers can prohibit dual agents from divulging certain confidential information about them to the other party.

Some firms also offer a form of dual agency called “designated agency” where one agent in the firm represents the seller and another agent represents the buyer. This option (when available) may allow each “designated agent” to more fully represent each party.

If you choose the “dual agency” option, remember that since a dual agent’s loyalty is divided between parties with competing interests, it is especially important that you have a clear understanding of • what your relationship is with the dual agent and • what the agent will be doing for you in the transaction.

Buyers

When buying real estate, you may have several choices as to how you want a real estate firm and its agents to work with you. For example, you may want them to represent only you (as a buyer’s agent). You may be willing for them to represent both you and the seller at the same time (as a

• follow your lawful instructions • provide you with all material facts that could influence your decisions • use reasonable skill, care and diligence, and • account for all monies they handle for you. Once you have signed the listing agreement, the firm and its agents may not give any confidential information about you to prospective buyers or their agents without your permission so long as they represent you. But until you sign the listing agreement, you should avoid telling the listing agent anything you would not want a buyer to know.

Services and Compensation: To help you sell your property, the listing firm and its agents will offer to perform a number of services for you. These may include • helping you price your property • advertising and marketing your property • giving you all required property disclosure forms for you to complete • negotiating for you the best possible price and terms • reviewing all written offers with you and • otherwise promoting your interests.

For representing you and helping you sell your property, you will pay the listing firm a sales commission or fee. The listing agreement must state the amount or method for determining the commission or fee and whether you will allow the firm to share its commission with agents representing the buyer.

When buying or selling real estate, you may find it helpful to have a real estate agent assist you. Real estate agents can provide many useful services and work with you in different ways. In some real estate transactions, the agents work for the seller. In others, the seller and buyer may each have agents. And some-times the same agents work for both the buyer and the seller. It is important for you to know whether an agent is working for you as your agent or simply working with you while acting as an agent of the other party.

This brochure addresses the various types of working relationships that may be available to you. It should help you decide which relationship you want to have with a real estate agent. It will also give you useful information about the various services real estate agents can provide buyers and sellers, and it will help explain how real estate agents are paid.

sellers

Seller’s Agent

If you are selling real estate, you may want to “list” your property for sale with a real estate firm. If so, you will sign a “listing agreement” authorizing the firm and its agents to represent you in your dealings with buyers as your seller’s agent. You may also be asked to allow agents from other firms to help find a buyer for your property.

Be sure to read and understand the listing agreement before you sign it.

Duties to Seller: The listing firm and its agents must • promote your best interests • be loyal to you

Continued on the back

Agents must retain this acknowledgment for their files.

This is not a contract

By signing, I acknowledge that the agent named below furnished a copy of this brochure and reviewed it with me.

Buyer or Seller Name (Print or Type)

Buyer or Seller Signature

Buyer or Seller Name (Print or Type)

Buyer or Seller Signature

Date

Firm Name

Agent Name License Number

Disclosure of Seller Subagency

(Complete, if applicable)❒ When showing you property and assisting you in the purchase of a property, the above agent and firm will represent the SELLER. For more information, see “Seller’s Agent Working with a Buyer” in the brochure.

Buyer’s Initials Acknowledging Disclosure:

Working With real estate agents

Working With real estate agents

Date

Firm Name

Agent Name License Number

Disclosure of Seller Subagency

(Complete, if applicable)❒ When showing you property and assisting you in the purchase of a property, the above agent and firm will represent the SELLER. For more information, see “Seller’s Agent Working with a Buyer” in the brochure.

Agent’s Initials Acknowledging Disclosure:

For Buyer/seller

any confidential information about you to sellers or their agents without your permission so long as they represent you. But until you make this agreement with your buyer’s agent, you should avoid telling the agent anything you would not want a seller to know.

Unwritten Agreements: To make sure that you and the real estate firm have a clear understanding of what your relationship will be and what the firm will do for you, you may want to have a written agreement. However, some firms may be willing to represent and assist you for a time as a buyer’s agent without a written agreement. But if you decide to make an offer to purchase a particular property, the agent must obtain a written agency agreement. If you do not sign it, the agent can no longer represent and assist you and is no longer required to keep information about you confidential. Furthermore, if you later purchase the property through an agent with another firm, the agent who first showed you the property may seek compensation from the other firm.

Be sure to read and understand any agency agreement before you sign it.

Services and Compensation: Whether you have a written or unwritten agreement, a buyer’s agent will perform a number of services for you. These may include helping you • find a suitable property • arrange financing • learn more about the property and • other-wise promote your best interests. If you have a written agency agreement, the agent can also help you prepare and submit a written offer to the seller.

A buyer’s agent can be compensated in different ways. For example, you can pay the agent out of your own pocket. Or the agent may seek compensation from the seller or listing agent first, but require you to pay if the listing agent refuses. Whatever the case, be sure your compensation arrangement with your buyer’s agent is spelled out in a buyer agency agreement before you make an offer to purchase property and that you carefully read and understand the compensation provision.

Dual Agent

You may permit an agent or firm to represent you and the seller at the same time. This “dual agency relationship” is most likely to happen if you become interested in a property listed with your buyer’s agent or the agent’s firm. If this occurs and you have not already agreed to a dual agency relationship in your (written or oral) buyer agency agreement, your buyer’s agent will ask you to sign a separate agreement or document permitting him or her to act as agent for both you and the seller. It may be difficult for a dual agent to advance the interests of both the buyer and seller. Nevertheless, a dual agent must treat buyers and sellers fairly and equally. Although the dual agent owes them the same duties, buyers and sellers can prohibit dual agents from divulging certain confidential information about them to the other party.

Some firms also offer a form of dual agency called “designated agency” where one agent in the firm represents the seller and another agent represents the buyer. This option (when available) may allow each “designated agent” to more fully represent each party.

If you choose the “dual agency” option, remember that since a dual agent’s loyalty is divided between parties with

competing interests, it is especially important that you have a clear understanding of • what your relationship is with the dual agent and • what the agent will be doing for you in the transaction. This can best be accomplished by putting the agreement in writing at the earliest possible time.

Seller’s Agent Working With a Buyer

If the real estate agent or firm that you contact does not offer buyer agency or you do not want them to act as your buyer agent, you can still work with the firm and its agents. However, they will be acting as the seller’s agent (or “subagent”). The agent can still help you find and purchase property and provide many of the same services as a buyer’s agent. The agent must be fair with you and provide you with any “material facts” (such as a leaky roof) about properties.

But remember, the agent represents the seller—not you— and therefore must try to obtain for the seller the best possible price and terms for the seller’s property. Furthermore, a seller’s agent is required to give the seller any information about you (even personal, financial or confidential information) that would help the seller in the sale of his or her property. Agents must tell you in writing if they are sellers’ agents before you say anything that can help the seller. But until you are sure that an agent is not a seller’s agent, you should avoid saying anything you do not want a seller to know.

Sellers’ agents are compensated by the sellers.

The North Carolina Real Estate CommissionP.O. Box 17100 • Raleigh, North Carolina 27619-7100

919/875-3700 • Web Site: www.ncrec.govREC 3.45 1/1/09

50,000 copies of this public document were printed at a cost of $.000 per copy.

Working With real

estate agents

ROLL FOLD... MAKE ADJUSTMENTS FOR ROLL FOLD.MAKE ADJUSTMENTS FOR DOT GAIN.

Put Tranzon to Work for You

Tranzon’s proprietary Market-Making SystemSM is a proven-effective

methodology for the accelerated sale of real estate and other business assets.

Our System offers sellers the benefi ts of our national reach and extensive

experience, combined with local market knowledge, the most advanced

online marketing techniques, and the benefi t our proprietary database of

potential auction buyers.

© 2013 Tranzon, LLC and Tranzon International, LLC. All Tranzon companies are independently owned and operated.

The Tranzon Market-Making SystemSM

Tranzon can help you select the most effective auction approach for your assets.

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Let Tranzon’s Market-Making SystemSM

work for you. With trained and licensed

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Find an offi ce at tranzon.com or call

Tranzon, LLC at 866-872-6966.

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Tranzon is one of the largest and most successful real estate auction

companies in the country. We help owners sell their real estate in the shortest

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