HomeMy WebLinkAboutKhalaj, Maryam; 2019-11-18;Recording Requested by:
·FNTG Builder Services
RECORDING REQUESTED BY:
FNTG Builder Services
Escrow No.: S "'-(QO \Ii""
Title No.: 91'-(po J 1 3:
-006-AM4
-006-KC
WHEN RECORDED MAIL DOCUMENT AND
TAX STATEMENT TO:
City of Carlsbad
City Clerks Office
1200 Carlsbad Village Drive
Carlsbad, CA 92008
APN: 213-262-22-00 WOP
DOC# 2019-0610317
111111111111 lllll 111111111111111111111111111111111111111111111 IIII 1111
Dec 27, 2019 04:22 PM
OFFICIAL RECORDS Ernest J. Dronenburg, Jr.,
SAN DIEGO COUNTY RECORDER
FEES: $0.00 (SB2 Atkins: $0.00)
PCOR: N/A
PAGES: 13
SPACE ABOVE THIS LINE FOR RECORDER'S USE
The undersigned declares exemption under the following: it Exempt from fee per GC 27383 ; No fee shall be charged by
the recorder for services rendered to the State, to any
municipality, county in the State or other political subdivision
thereof, except for making a copy of a paper or record.~
Exempt from fee per GC 27388.l (a} (2);
recorded concur(ently In connection with
a transfer subject to the Imposition of
documentary transfer tax
DEED OF TRUST AND SECURITY AGREEMENT
Title Page of Document to Record
REC00059 (OSI Rev. 4/5/18)
DOCUMENT TITLE
Escrow No.: SHK70057-006-AM4
Recording Requestcc; hy.
FNTG Builder ServiceG
SK wO ' t 7 -150/p fw\/ I<~
City of Carlsbad
City Clerk's Office
1200 Carlsbad Village Drive
Carlsbad, CA 92008
Ji; No fee for recording pursuant to \L
Government Code Section 273831'
DEED OF TRUST AND SECURITY AGREEMENT
(City of Carlsbad Homebuyer Program)
Note to Borrower: This Deed of Trust contains provisions prohibiting assumption
THIS DEED OF TRUST AND SECURITY AGREEMENT (the "Deed of Trust") is
made as of this ..lfil.h day of November , 20IL among Maryam Khalaj, A Single
Woman ("Borrower(s)"), as Trustor, and Chicago Title ("Trustee"), as trustee, and the City
of Carlsbad, a municipal corporation ("City"), as beneficiary.
The Borrower, in consideration of the promises herein recited and the trust herein
created, irrevocably grants, transfers, conveys and assigns to the Trustee, in trust, with power of
sale, the real property located in the City of Carlsbad, State of California, described in the
attached Exhibit A (the "Property");
TOGETHER with all the improvements now or hereafter erected on the real property
described in Exhibit A, and all easements, rights, appurtenances, and all fixtures now or hereafter
attached to the property, all of which, including replacements and additions thereto, shall be
deemed to be and remain a part of the property covered by this Deed of Trust ( collectively, the
"Property"); and
TOGETHER with all articles of personal property or fixtures now or hereafter attached to
or used in and about the building or buildings now erected or hereafter to be erected on the
Property which are necessary to the complete and comfortable use and occupancy of such
building or buildings for the purposes for which they were or are to be erected, including all
other goods and chattels and personal property as are ever used or furnished in operating a
building, or the activities conducted therein, similar to the one herein described and referred to,
and all renewals or replacements thereof or articles in substitution therefore, whether or not the
same are, or shall be attached to said building or buildings in any manner; and all of the
foregoing, together with the Property, is herein referred to as the "Security";
To have and to hold the Security together with acquittances to the Trustee, its successors
and assigns forever;
IO I 0\17\2045536.2
TO SECURE to the City the repayment of the sums evidenced by a promissory note in
the amount of Three Hundred Thirty Thousand Eight Hundred Four Dollars ($330,804) executed
by the Borrower in favor of the City as of the date of this Deed of Trust ("Note");
TO SECURE to the City the payment of all other sums, with interest thereon, advanced
in accordance herewith to protect the security of this Deed of Trust; and the performance of the
covenants and agreements of the Borrower herein contained;
TO SECURE to the City the performance of the covenants and agreements of Borrower
contained in that certain Declaration of Restrictive Covenants Regarding Restrictions on
Transfer of Property, Occupancy Restrictions, Refinancing Restrictions and Option to Purchase
executed by and between the Borrower and the City of even date herewith and recorded against
the Property on, or about, the date this Deed of Trust is recorded as a lien against the Property
(the " Resale Restriction Agreement") and to secure the payment of Excess Sales Proceeds (as
defined in the Resale Restriction Agreement) and Unauthorized Rental Proceeds (as defined in
the Resale Restriction Agreement) that may become due by Borrower to City: and
TO SECURE the performance of any obligations of Borrower in any other agreements
with respect to the financing of the Property or the Security the failure of which would adversely
affect Beneficiary, whether or not Beneficiary is a party to such agreements.
BORROWER AND CITY COVENANT AND AGREE AS FOLLOWS:
1. Borrower's Estate. That the Borrower is lawfully seized of the estate hereby
conveyed and has the right to grant and convey the Security, that other than this Deed of Trust,
the Security is encumbered only by: (a) that deed of trust executed by the Borrower in
connection with a loan made to the Borrower by CrossCountry Mortgage, Inc. or its successors
and assigns (the "First Lender"), dated be~ IO , 20 !L executed by the Borrower in favor
of First Lender, and recorded in the County of San Diego on CoNCJJfl,p.eµf!!J, 20 _, and assigned
Recorder's Serial N o.C.ONtuite()H~ ("First Lender Deed of Trust"), securing a promissory note
executed by the Borrower in favor of the First Lender ("First Lender Note"), to assist in the
purchase of the Property; and (b) the Resale Restriction Agreement. The Borrower agrees to
warrant and defend generally the title to the Security against all claims and demands, subject to
any declarations, easements or restrictions listed in a schedule of exceptions to coverage in any
title insurance policy insuring the City's interest in the Security. (As used in this Deed of Trust,
the term "First Lender" shall include all successors and assigns of the First Lender.)
2. Repayment of Loan: Prohibition on Assumptions. The Borrower will promptly
repay, when due, the principal, interest and other sums required by the Note and Resale
Restriction Agreement including all principal and interest on the Homebuyer Loan (as defined in
the Note) and the Excess Sales Proceeds and Unauthorized Rental Proceeds due under the Resale
Restriction Agreement. Among other things, the Note contains the following provisions
concerning repayment of the loan under certain conditions:
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Limitations on Assumption of Note. The Borrower acknowledges that this
Note is given in connection with the purchase of the Property as part of a
program of the City to assist in the purchase of homes by low and
moderate income persons. Consequently, this Note is only assumable by
Eligible Purchasers (as defined in the Resale Restriction Agreement).
This Note is due in full upon all other Transfers. In the event this Note is
assumed by an Eligible Purchaser, the Eligible Purchaser shall execute a
new note, which shall be in an amount equal to the principal and
Contingent Interest owed by Borrower, a new Deed of Trust and a new
Resale Restriction Agreement with a restarted term in forms approved by
the City.
3. First Lender Loan. The Borrower will observe and perform all of the covenants
and agreements of the First Lender Note, First Lender Deed of Trust, and related First Lender
loan documents.
4. Resale Restriction Agreement. The Borrower will observe and perform all of the
covenants and agreements of the Resale Restriction Agreement. Among other things, the Resale
Restriction Agreement requires the Borrower to utilize the Property as the Borrower's principal
residence, and restricts: (i) the Borrower's ability to transfer the Property, or the obligations
under the Note; (ii) the Borrower's ability to refinance the First Lender Note; and (iii) the
Borrower's ability to use the Property as security for additional loans or financing. The
Borrower's failure to comply with the requirements of the Resale Restriction Agreement
constitutes a default under this Deed of Trust.
5. Charges; Liens. The Borrower will pay all taxes, assessments and other charges,
fines and impositions attributable to the Security which may attain a priority over this Deed of
Trust, by the Borrower making any payment, when due, directly to the payee thereof. The
Borrower will promptly furnish to the City all notices of amounts due under this paragraph, and
in the event the Borrower makes payment directly, the Borrower will promptly discharge any
lien which has priority over this Deed of Trust; provided, that the Borrower will not be required
to discharge the lien of the First Lender Deed of Trust or any other lien described in this
paragraph so long as the Borrower will agree in writing to the payment of the obligation secured
by such lien in a manner acceptable to the City, or will, in good faith, contest such lien by, or
defend enforcement of such lien in, legal proceedings which operate to prevent the enforcement
of the lien or forfeiture of the Security or any part thereof.
6. Insurance. The Borrower will keep the Security insured with a standard fire and
extended coverage insurance policy in at least an amount equal to the replacement cost of the
Security, but in no event less than the amount necessary to prevent the Borrower from becoming
a co-insurer under the terms of the policy.
The insurance carrier providing this insurance shall be licensed to do business in the State
of California and be chosen by the Borrower subject to approval by the City; provided, that such
approval will not be withheld if the insurer is also approved by the First Lender, the Federal
Home Loan Mortgage Corporation, Fannie Mae, Freddie Mac, the United States Department of
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IO I Oil 712045536.2
Housing and Urban Development, the United States Department of Veterans Affairs, or any
successor thereto.
All insurance policies and renewals thereof will be in a form acceptable to the City and
will include a standard mortgagee clause with standard lender's endorsement in favor of the
holder of the First Lender Note and the City as their interests may appear and in a form
acceptable to the City. The City shall have the right to hold, or cause its designated agent to
hold, the policies and renewals thereof, and the Borrower shall promptly furnish to the City, or
its designated agent, the original insurance policies or certificates of insurance, all renewal
notices and all receipts of paid premiums. In the event of loss, the Borrower will give prompt
notice to the insurance carrier and the City or its designated agent. The City, or its designated
agent, may make proof of loss if not made promptly by the Borrower. The City shall receive ten
( 10) days advance notice of cancellation of any insurance policies required under this section.
Unless the City and the Borrower otherwise agree in writing, insurance proceeds, subject
to the rights of the First Lender, will be applied to restoration or repair of the Security damaged,
provided such restoration or repair is economically feasible and the Security of this Deed of
Trust is not thereby impaired. If such restoration or repair is not economically feasible or if the
security of this Deed of Trust would be impaired, the insurance proceeds will be used, subject to
the rights of the First Lender, to repay the Note and all sums secured by this Deed of Trust, with
the excess, if any, paid to the Borrower. If the Security is abandoned by the Borrower, or if the
Borrower fails to respond to the City, or its designated agent, within thirty (30) days from the
date notice is mailed by either of them to the Borrower that the insurance carrier offers to settle a
claim for insurance benefits, the City, or its designated agent, is authorized, subject to the rights
of the First Lender, to collect and apply the insurance proceeds at the City's option either to
restoration or repair of the Security or to repay the Note and all sums secured by this Deed of
Trust.
If the Security is acquired by the City, all right, title and interest of the Borrower in and to
any insurance policy and in and to the proceeds thereof resulting from damage to the Security
prior to the sale or acquisition will pass to the City to the extent of the sums secured by this Deed
of Trust immediately prior to such sale or acquisition subject to the rights of the First Lender.
7. Preservation and Maintenance of Security. The Borrower will keep the Security
in good repair and will not commit waste or permit impairment or deterioration of the Security.
If there arises a condition in contravention of this section, and if the Borrower has not cured such
condition within thirty (30) days after receiving a City notice of such a condition, then in
addition to any other rights available to the City, the City shall have the right (but not the
obligation) to perform all acts necessary to cure such condition, and to establish or enforce a lien
or other encumbrance against the Security to recover its cost of curing.
8. Protection of the City's Security. If the Borrower fails to perform the covenants
and agreements contained in this Deed of Trust, the Resale Restriction Agreement, the First
Lender Note, the First Lender Deed of Trust, or if any action or proceeding is commenced which
materially affects the City's interest in the Security, including, but not limited to, default under
the First Lender Deed of Trust, the First Lender Note, eminent domain, insolvency, code
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IO I 0\1712045536.2
enforcement, or arrangements or proceedings involving a bankrupt or decedent, then the City, at
the City's option, upon notice to the Borrower, may make such appearances, disburse such sums
and take such action as it determines necessary to protect the City's interest, including but not
limited to, disbursement ofreasonable attorney's fees and entry upon the Security to make
repairs.
Any amounts disbursed by the City pursuant to this paragraph, with interest thereon, will
become an indebtedness of the Borrower secured by this Deed of Trust. Unless the Borrower
and City agree in writing to other terms of payment, such amount will be payable upon notice
from the City to the Borrower requesting payment thereof, and will bear interest from the date of
disbursement at the lesser of ten percent ( 10%) or the highest rate permissible under applicable
law. Nothing contained in this paragraph will require the City to incur any expense or take any
action hereunder.
9. Inspection. The City may make or cause to be made reasonable entries upon and
inspections of the Security; provided that the City will give the Borrower reasonable notice of
inspection.
10. Forbearance by the City Not a Waiver. Any forbearance by the City in exercising
any right or remedy will not be a waiver of the exercise of any such right or remedy, nor shall
acceptance by the City of any payment provided for in the Note constitute a waiver of the City's
right to require prompt payment of any remaining principal and interest owed. The procurement
of insurance or the payment of taxes or other liens or charges by the City will not be a waiver of
the City's right to accelerate the maturity of the indebtedness secured by this Deed of Trust.
11. Hazardous Substances. Borrower shall not cause or permit the presence, use,
disposal, storage, or release of any Hazardous Substances on or in the Property. Borrower shall
not do, nor allow anyone else to do, anything affecting the Property that is in violation of any
Environmental Law. The preceding two sentences shall not apply to the presence, use, or storage
on the Property of small quantities of Hazardous Substances that are generally recognized to be
appropriate to normal residential uses and to maintenance of the Property.
"Hazardous Substances" shall mean those substances defined as toxic or hazardous
substances or hazardous waste under any Environmental Law, and the following substances:
gasoline, kerosene, other flammable or toxic petroleum products, toxic pesticides and herbicides,
volatile solvents, materials containing asbestos or formaldehyde, and radioactive materials.
"Environmental Law" shall mean all federal and state of California laws that relate to
health, safety or environmental protection.
Borrower shall promptly give City written notice of any investigation, claim, demand,
lawsuit or other action by any governmental or regulatory agency or private party involving the
Property and any Hazardous Substance or Environmental Law of which Borrower has actual
knowledge. If Borrower learns, or is notified by any governmental or regulatory authority, that
any removal or other remediation of any Hazardous Substance affecting the Property is
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necessary, Borrower shall promptly take all necessary remedial actions in accordance with
Environmental Law.
12. Remedies Cumulative. All remedies provided in this Deed of Trust are distinct
and cumulative to any other right or remedy under this Deed of Trust or any other document, or
afforded by law or equity, and may be exercised concurrently, independently or successively.
13. Successors and Assigns Bound. The covenants and agreements herein contained
shall bind, and the rights hereunder shall inure to, the respective successors and assigns of the
City and the Borrower subject to the provisions of this Deed of Trust.
14. Joint and Several Liability. All covenants and agreements of the Borrower shall
be joint and several.
15. Notice. Except for any notice required under applicable law to be given in
another manner, all notices required in this Deed of Trust shall be sent by certified mail, return
receipt requested or express delivery service with a delivery receipt, or personally delivered with
a delivery receipt obtained, and shall be deemed to be effective as of the date shown on the
delivery receipt as the date of delivery, the date delivery was refused, or the date the notice was
returned as undeliverable as follows:
To the Owner:
Address of the Property
To the City:
City of Carlsbad
Housing and Neighborhood Services Department
1200 Carlsbad Village Drive
Carlsbad, CA 92008
Attn: Housing and Neighborhood Services Director
The parties may subsequently change addresses by providing written notice of the change
in address to the other parties in accordance with this section.
16. Controlling Law. This Deed of Trust shall be construed in accordance with and
be governed by the laws of the State of California.
1 7. Invalid Provisions. If any one or more of the provisions contained in this Deed of
Trust, Resale Restriction Agreement or the Note shall for any reason be held to be invalid, illegal
or unenforceable in any respect, then such provision or provisions shall be deemed severable
from the remaining provisions, and this Deed of Trust, the Resale Restriction Agreement and the
Note shall be construed as if such invalid, illegal or unenforceable provision had never been
contained in this Deed of Trust, Resale Restriction Agreement or the Note.
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18. Captions. The captions and headings in this Deed of Trust are for convenience
only and are not to be used to interpret or define the provisions hereof.
19. Nonliability for Negligence, Loss, or Damage. Borrower acknowledges,
understands and agrees that the relationship between Borrower and the City is solely that of a
borrower and the administrator of a municipal inclusionary housing program, and that the City
does not undertake or assume any responsibility for or duty to Borrower to select, review,
inspect, supervise, pass judgment on, or inform Borrower of the quality, adequacy or suitability
of the Security or any other matter. The City owes no duty of care to protect Borrower against
negligent, faulty, inadequate or defective building or construction or any condition of the
Security and Borrower agrees that neither Borrower, or Borrower's heirs, successors or assigns
shall ever claim, have or assert any right or action against the City for any loss, damage or other
matter arising out of or resulting from any condition of the Security and will hold City harmless
from any liability, loss or damage for these things.
20. Indemnity. Borrower agrees to defend, indemnify, and hold the City harmless
from all losses, damages, liabilities, claims, actions, judgments, costs, expenses and reasonable
attorneys' fees that the City may incur as a direct or indirect consequence of:
a. Borrower's failure to perform any obligations as and when required by the
Note, Resale Restriction Agreement, and this Deed of Trust; or
b. the failure at any time of any of Borrower's representations or warranties
to be true and correct.
This provision shall survive the term of this Agreement.
21. Default; Remedies. Upon the Borrower's breach of any covenant or agreement of
the Borrower in the Note, Resale Restriction Agreement or this Deed of Trust, including, but not
limited to, the covenants to pay, when due, any sums secured by this Deed of Trust, the City,
prior to acceleration, will send, in the manner set forth in Section 15 of this Deed of Trust, notice
to the Borrower specifying: (1) the breach; (2) if the breach is curable, the action required to
cure such breach; (3) a date, not less than thirty (30) days from the date the notice is effective as
set forth in Section 15 of this Deed of Trust, by which such breach, if curable, is to be cured; and
( 4) if the breach is curable, that failure to cure such breach on or before the date specified in the
notice may result in acceleration of the sums secured by this Deed of Trust and sale of the
Security. Notice shall be effective as of the date shown on the delivery receipt as the date of
delivery, the date delivery was refused or the date the notice was returned as undeliverable. The
notice will also inform the Borrower of the Borrower's right to reinstate after acceleration and the
right to bring a court action to assert the nonexistence of default or any other defense of the
Borrower to acceleration and sale.
If the breach is not curable or is not cured on or before the date specified in the notice, the
City, at the City's option, may: (a) declare all of the sums secured by this Deed of Trust to be
immediately due and payable without further demand and may invoke the power of sale and any
other remedies permitted by California law; (b) either in person or by agent, with or without
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bringing any action or proceeding, or by a receiver appointed by a court, and without regard to
the adequacy of its security, enter upon the Security and take possession thereof ( or any part
thereof) and of any of the Security, in its own name or in the name of the Trustee, and do any
acts which it deems necessary or desirable to preserve the value or marketability of the Security,
or part thereof or interest therein, increase the income therefrom or protect the security thereof.
The entering upon and taking possession of the Security shall not cure or waive any breach
hereunder or invalidate any act done in response to such breach and, notwithstanding the
continuance in possession of the Security, the City shall be entitled to exercise every right
provided for in this Deed of Trust, or by law upon occurrence of any uncured breach, including
the right to exercise the power of sale; ( c) commence an action to foreclose this Deed of Trust as
a mortgage, appoint a receiver, or specifically enforce any of the covenants hereof; ( d) deliver to
the Trustee a written declaration of default and demand for sale, pursuant to the provisions for
notice of sale found at California Civil Code Sections 2924, et seq., as amended from time to
time; or ( e) exercise all other rights and remedies provided herein, in the instruments by which
the Borrower acquires title to any Security, or in any other document or agreement now or
hereafter evidencing, creating or securing all or any portion of the obligations secured hereby, or
provided by law.
The City shall be entitled to collect all reasonable costs and expenses incurred in pursuing
the remedies provided in this paragraph, including, but not limited to, reasonable attorney's fees.
22. Acceleration. Upon the occurrence of a default under the Note, the Resale
Restriction Agreement, this Deed of Trust, the First Lender Note, or the First Lender Deed of
Trust, the City shall have the right to declare the full amount of the principal along with any
interest under the Note immediately due and payable. Any failure by the City to pursue its legal
and equitable remedies upon default shall not constitute a waiver of the City's right to declare a
default and exercise all of its rights under the Note, the Resale Restriction Agreement, and this
Deed of Trust. Nor shall acceptance by the City of any payment provided for in the Note
constitute a waiver of the City's right to require prompt payment of any remaining principal and
interest owed.
23. Borrower's Right to Reinstate. Notwithstanding the City's acceleration of the
sums secured by this Deed of Trust, the Borrower will have the right to have any proceedings
begun by the City to enforce this Deed of Trust discontinued at any time prior to five (5) days
before sale of the Security pursuant to the power of sale contained in this Deed of Trust or at any
time prior to entry of a judgment enforcing this Deed of Trust if: (a) the Borrower pays City all
sums, if any, which would be then due under this Deed of Trust and no acceleration under the
Note has occurred; (b) the Borrower cures all breaches of any other covenants or agreements of
the Borrower contained in the Note, Resale Restriction Agreement or this Deed of Trust; ( c) the
Borrower pays all reasonable expenses incurred by City and the Trustee in enforcing the
covenants and agreements of the Borrower contained in the Note, Resale Restriction Agreement
or this Deed of Trust, and in enforcing the City's and the Trustee's remedies, including, but not
limited to, reasonable attorney's fees; and (d) the Borrower takes such action as City may
reasonably require to assure that the lien of this Deed of Trust, City's interest in the Security and
the Borrower's obligation to pay the sums secured by this Deed of Trust shall continue
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unimpaired. Upon such payment and cure by the Borrower, this Deed of Trust and the
obligations secured hereby will remain in full force and effect as if no acceleration had occurred.
24. Reconveyance. Upon payment of all sums secured by this Deed of Trust, the City
will request the Trustee to reconvey the Security and will surrender this Deed of Trust and the
Note to the Trustee. The Trustee will reconvey the Security without warranty and without
charge to the person or persons legally entitled thereto. Such person or persons will pay all costs
of recordation, if any.
25. Substitute Trustee. The City, at the City's option, may from time to time remove
the Trustee and appoint a successor trustee to any trustee appointed hereunder. The successor
trustee will succeed to all the title, power and duties conferred upon the Trustee herein and by
applicable law.
26. Subordination to First Lender Mortgage. Notwithstanding any other provision
hereof, the provisions of this Deed of Trust shall be subordinate to the lien of the First Lender
Deed of Trust and shall not impair the rights of the First Lender, or the First Lender's successor
or assign, to exercise its remedies under the First Lender Deed of Trust in the event of default
under the First Lender Deed of Trust by the Borrower. Such remedies under the First Lender
Deed of Trust include the right of foreclosure or acceptance of a deed or assignment in lieu of
foreclosure. After such foreclosure or acceptance of a deed or assignment in lieu of foreclosure,
or upon assignment of the First Lender Deed of Trust to the Secretary of the United States
Department of Housing and Urban Development (the "Secretary"), this Deed of Trust shall be
forever terminated and shall have no further effect as to the Property or any transferee thereafter;
provided, however, if the holder of such First Lender Deed of Trust acquired title to the Property
pursuant to a deed or assignment in lieu of foreclosure, or if the First Lender's Deed of Trust is
assigned to the Secretary, this Deed of Trust shall automatically terminate upon such acquisition
of title or assignment to the Secretary provided that: (i) the City has been given written notice of
default under such First Lender Deed of Trust; and (ii) the City shall not have cured or
commenced to cure the default within such thirty (30) day period and given its firm commitment
to complete the cure in the form and substance acceptable to the First Lender. Borrower agrees
to record any necessary documents to effect such termination, if applicable.
Remainder of Page Left Intentionally Blank
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IN WITNESS WHEREOF, the Borrower has executed this Deed of Trust as of the date
first written above.
Note to Borrower: This Deed of Trust contains provisions prohibiting assumption
(Proper Notarial Acknowledgement of Execution by Borrower(s) Must Be Attached)
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A notary public or other officer completing this certificate verifies only the
identity of the individual who signed the document to which this certificate
is attached, and not the truthfulness, accuracy, or validity of that document.
State of California
County of SAN DIEGO
CALIFORNIA ALL-PURPOSE
CERTIFICATE OF
ACKNOWLEDGMENT
On Jfi C: I ~ 1 ;;:>,;:i l q before me, ___ E_. N_._MA_L_O_N_E~,_NO_T_A_R_Y_PU_B_L_I_C ____ _
(here insert name and title of the ofncer)
personally appeared f'.-\. ~ (2-Y 0.. M t\ +J A L '1 T
who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to
the within instrument and acknowledged to me that he/she/they executed the same in his/her/their
authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity
upon behalf of which the person(s) acted, executed the instrument.
I certify under PENALTY OF PERJURY under the laws of the
State of California that the foregoing paragraph is true and correct.
WITNESS my hand and official seal.
Signature ~ w ~ ~~ ------------------>.,,,~-----(Seal)
OPTIONAL INFORMATION
Although the information in this section is not required by law, it could prevent fraudulent removal and reattachment of this
acknowledgment to an unauthorized document and may prove useful to persons relying on the attached document.
Description of Attached Document
The preceding Certificate of Acknowledgment is attached to a document
titled/for t__he purpose of _J;)~ ~ o--fl ____ \~ u_?_j--~..i-~ Proved to me on the basis of satisfactory evidence:
I forrn(s) of identification 1 ' credible w,triess(es)
~~-"' -'-':,_I'.\_""='-~ -~~~ ;;;J~"'t~£ ~ I No<,u<ol "rn' is decailed le cc<,uy joornol °''
containing pages, and dated -J _ ~ Page# Entry# -----------------------------I
The signer(s) capacity or authority is/are as: j Notary contact:
1·] lndividual(s) i Other ___ _
7 Attorney-in-Fact 1
I Corporate Officer(s)
I Guardian/Conservator
! I Partner -L1m1ted/Genercl
1 I Trustee(s)
i_ i Other
representing:
T,tle(s)
Add1t1011al Sianer(s)
LJ
i S1ciner(s) Thurnhprint(s)
Escrow No.: SK60117-006-AM4
EXHIBIT "A"
Legal Description
A CONDOMINIUM COMPRISED OF:
PARCEL 1:
AN UNDIVIDED FEE SIMPLE INTEREST AS A TENANT IN COMMON IN AND TO THE COMMON AREA IN
THE MODULE IN WHICH THE RESIDENTIAL UNIT DESCRIBED IN PARCEL 2 BELOW IS LOCATED EQUAL
TO THE RECIPROCAL OF THE NUMBER OF RESIDENTIAL UNITS LOCATED WITHIN SUCH MODULE, AS
SHOWN ON THE AMENDED AND RESTATED CONDOMINIUM PLAN FOR KENSINGTON AT THE SQUARE,
RECORDED IN THE OFFICE OF THE COUNTY RECORDER OF SAN DIEGO COUNTY, CALIFORNIA, ON
JUNE 13, 2019, AS DOCUMENT NO. 2019-0230474, AND ANY AMENDMENTS OR SUPPLEMENTS THERETO
(COLLECTIVELY "CONDOMINIUM PLAN"), LOCATED IN A PORTION OF LOT 1 OF CARLSBAD TRACT NO.
14-09 UPTOWN BRESSI RANCH, IN THE CITY OF CARLSBAD, COUNTY OF SAN DIEGO, STATE OF
CALIFORNIA, ACCORDING TO MAP THEREOF NO. 16253, FILED IN THE OFFICE OF THE COUNTY
RECORDER OF SAN DIEGO COUNTY, MARCH 9, 2018 ("MAP").
PARCEL 2:
RESIDENTIAL UNIT NO. 117, AS SHOWN AND DESCRIBED ON THE CONDOMINIUM PLAN;
PARCEL 3:
AN EXCLUSIVE EASEMENT TO USE EACH PORTION OF THE ASSOCIATION PROPERTY, IF ANY,
DESIGNATED IN THE CONDOMINIUM PLAN AS BEING AN EXCLUSIVE USE EASEMENT AREA
APPURTENANT TO THE RESIDENTIAL UNIT DESCRIBED IN PARCEL 2 ABOVE FOR THE PURPOSES
DESCRIBED IN THE DECLARATION OF COVENANTS, CONDITIONS AND RESTRICTIONS AND
ESTABLISHMENT OF EASEMENTS OF KENSINGTON AT THE SQUARE RECORDED IN THE OFFICIAL
RECORDS OF THE COUNTY RECORDER OF SAN DIEGO COUNTY, CALIFORNIA ON JUNE 13, 2019 AS
DOCUMENT NO. 2019-0230475, AND ANY AMENDMENTS AND SUPPLEMENTS THERETO (COLLECTIVELY,
THE "DECLARATION").
PARCEL 4:
A NON-EXCLUSIVE TEMPORARY EASEMENT FOR PEDESTRIAN AND VEHICULAR ACCESS, INGRESS
AND EGRESS BY GRANTEE OVER, UPON AND ACROSS THE PRIVATE STREETS MORE PARTICULARLY
DESCRIBED AS STREET MODULE A, STREET MODULE B, STREET MODULE C, AND STREET MODULE D,
AS SHOWN ON THE CONDOMINIUM PLAN, AND DESCRIBED IN THAT CERTAIN ACCESS EASEMENT
GRANT DEED RECORDED IN THE OFFICIAL RECORDS OF THE COUNTY RECORDER OF SAN DIEGO
COUNTY ON SEPTEMBER 4, 2019 AS DOCUMENT NO. 2019-0380430, WHICH EASEMENT IS
APPURTENANT TO THE RESIDENTIAL UNIT DESCRIBED IN PARCEL 2 ABOVE.
PARCEL 5:
A NON-EXCLUSIVE EASEMENT, IN COMMON WITH OTHER OWNERS, FOR ACCESS, INGRESS AND
EGRESS, IN, TO, OVER, UNDER AND ACROSS CERTAIN PORTIONS OF THE ASSOCIATION PROPERTY
DESCRIBED IN THE DECLARATION, SUBJECT TO THE LIMITATIONS SET FORTH THEREIN, WHICH
EASEMENT IS APPURTENANT TO THE RESIDENTIAL UNIT DESCRIBED ABOVE.
Recording Requested by:
,-FNTG Builder Services
RECORDING REQUESTED BY:
FNTG Builder Services
Escrow No.: SK60117-006-AM4
Title No.: SK60117-096KC
WHEN RECORDED MAIL DOCUMENT AND
TAX STATEMENT TO:
Cross Country Mortgage
Attn: Final Document Department
6850 Miller Road, ·
Brecksville, OH 44141
APN: 213-262-22-00 W.O.P.
Title Page of Document to Record
REC00059 (OSI Rev. 4/5/18)
DOC# 2019-0610315
111111111111 lllll 111111111111111111111111111111 lllll 111111111111111111
Dec 27, 2019 04:22 PM
OFFICIAL RECORDS Ernest J. Dronenburg, Jr.,
SAN DIEGO COUNTY RECORDER
FEES: $65.00 (S82 Atkins: $0.00)
PAGES: 18
SPACE ABOVE THIS LINE FOR RECORDER'S USE
The undersigned declares exemption under the following:
Exempt from fee per GC 27388.1 (a) (2); recorded In
connection with a transfer subject to the imposition of
documentary transfer tax recorded concurrently herewith
DEED OF TRUST
DOCUMENT TITLE
Escrow No.: SK60117-006-AM4
"'-1.1,U'l\,lillltJ ''"""'I,._ _____ -1 •
Ff}t~I\';~~,~-
. When recorded, mail to:
CrossCountry Mortgage, LLC
Attn: Final Document Department
6850 Miller Road
Brecksville, OH 44141
Title Order No.: SK60117-006-AM4
Escrow No.: SK60117-006-AM4
LOAN #: 40501905576945
--------------[Space Above This Line For Recording Data]--------------
DEED OF TRUST
DEFINITIONS
j MIN 1007191-0000432088-1
MERS PHONE#: 1-888-679-6377
Words used in multiple sections of this document are defined below and other words are defined in Sections 3, 11, 13, 18,
20 and 21. Certain rules regarding the usage of words used in this document are also provided in Section 16.
(A) "Security Instrument" means this document, which is dated December 10, 2019, together with all
Riders to this document.
(B) "Borrower" is MARYAM KHALAJ, A SINGLE WOMAN.
Borrower's address is 4312 Cassanna Way #212, Oceanside, CA 92057.
Borrower is the truster under this Security Instrument.
(C) "Lender" is CrossCountry Mortgage, LLC.
Lender is a Limited Liability Company,
Delaware.
organized and existing under the laws of
Lender's address is 6850 Miller Road, Brecksville,
OH 44141.
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(D) "Trustee" is Chicago Title Insurance Company.
(E) "MERS" is Mortgage Electronic Registration Systems, Inc. MERS is a separate corporation that is acting solely as a
nominee for Lender and Lender's successors and assigns. MERS is the beneficiary under this Security Instrument.
MERS is organized and existing under the laws of Delaware, and has an address and telephone number of P.O. Box 2026,
Flint, Ml 48501-2026, tel. (888) 679-MERS.
(F) "Note" means the promissory note signed by Borrower and dated December 10, 2019. The Note
states that Borrower owes Lender ONE HUNDRED FOURTEEN THOUSAND ONE HUNDRED NINETY SIX AND
NO/100* * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * Dollars (U.S. $114,196.00 )
plus interest. Borrower has promised to pay this debt in regular Periodic Payments and to pay the debt in full not later than
January 1, 2050.
(G) "Property" means the property that is described below under the heading "Transfer of Rights in the Property."
(H) "Loan" means the debt evidenced by the Note, plus interest, any prepayment charges and late charges due under the
Note, and all sums due under this Security Instrument, plus interest.
(I) "Riders" means all Riders to this Security Instrument that are executed by Borrower. The following Riders are to be
executed by Borrower [check box as applicable]:
D Adjustable Rate Rider ~ Condominium Rider
D Balloon Rider D Planned Unit Development Rider
D 1-4 Family Rider D Biweekly Payment Rider
0 V.A.Rider
D Second Home Rider
D Other(s) [specify]
(J) "Applicable Law" means all controlling applicable federal, state and local statutes, regulations, ordinances and admin-
istrative rules and orders (that have the effect of law) as well as all applicable final, non-appealable judicial opinions.
(K) "Community Association Dues, Fees, and Assessments" means all dues, fees, assessments and other charges that
are imposed on Borrower or the Property by a condominium association, homeowners association or similar organization.
(L) "Electronic Funds Transfer" means any transfer of funds, other than a transaction originated by check, draft, or
similar paper instrument, which is initiated through an electronic terminal, telephonic instrument, computer, or magnetic
tape so as to order, instruct, or authorize a financial institution to debit or credit an account. Such term includes, but is not
limited to, point-of-sale transfers, automated teller machine transactions, transfers initiated by telephone, wire transfers,
and automated clearinghouse transfers.
(M) "Escrow Items" means those items that are described in Section 3.
(N) "Miscellaneous Proceeds" means any compensation, settlement, award of damages, or proceeds paid by any third
party (other than insurance proceeds paid under the coverages described in Section 5) for: (i) damage to, or destruction of,
the Property; (ii) condemnation or other taking of all or any part of the Property; (iii) conveyance in lieu of condemnation; or
(iv) misrepresentations of, or omissions as to, the value and/or condition of the Property.
(0) "Mortgage Insurance" means insurance protecting Lender against the nonpayment of, or default on, the Loan.
(P) "Periodic Payment" means the regularly scheduled amount due for (i) principal and interest under the Note, plus
(ii) any amounts under Section 3 of this Security Instrument.
(Q) "RESPA'' means the Real Estate Settlement Procedures Act (12 U.S.C. §2601 et seq.) and its implementing regulation,
Regulation X (12 C.F.R. Part 1024), as they might be amended from time to time, or any additional or successor legislation
or regulation that governs the same subject matter. As used in this Security Instrument, "RESP.A:' refers to all requirements
and restrictions that are imposed in regard to a ''federally related mortgage loan" even if the Loan does not qualify as a
"federally related mortgage loan" under RESPA.
(R) "Successor in Interest of Borrower" means any party that has taken title to the Property, whether or not that party
has assumed Borrower's obligations under the Note and/or this Security Instrument.
TRANSFER OF RIGHTS IN THE PROPERTY
The beneficiary of this Security Instrument is MERS (solely as nominee for Lender and Lender's successors and assigns)
and the successors and assigns of MERS. This Security Instrument secures to Lender: (i) the repayment of the Loan, and
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all renewals, extensions and modifications of the Note; and (ii) the performance of Borrower's covenants and agreements
under this Security Instrument and the Note. For this purpose, Borrower irrevocably grants and conveys to Trustee, in trust,
with power of sale, the following described property located in the County [Type of Recording Jurisdiction]
of San Diego [Name of Recording Jurisdiction]:
SEE LEGAL DESCRIPTION ATTACHED HERETO AND MADE A PART HEREOF AS "EXHIBIT A".
APN #: 213-262-22-00
which currently has the address of 6034 Colt Place Unit 301, Carlsbad,
[Street] [City]
California 92009 ("Property Address"):
[Zip Code]
TOGETHER WITH all the improvements now or hereafter erected on the property, and all easements, appurtenances,
and fixtures now or hereafter a part of the property. All replacements and additions shall also be covered by this Security
Instrument.All of the foregoing is referred to in this Security Instrument as the "Property:· Borrower understands and agrees
that MERS holds only legal title to the interests granted by Borrower in this Security Instrument, but, if necessary to comply
with law or custom, MERS (as nominee for Lender and Lender's successors and assigns) has the right: to exercise any or
all of those interests, including, but not limited to, the right to foreclose and sell the Property; and to take any action required
of Lender including, but not limited to, releasing and canceling this Security Instrument.
BORROWER COVENANTS that Borrower is lawfully seised of the estate hereby conveyed and has the right to grant
and convey the Property and that the Property is unencumbered, except for encumbrances of record. Borrower warrants
and will defend generally the title to the Property against all claims and demands, subject to any encumbrances of record.
THIS SECURITY INSTRUMENT combines uniform covenants for national use and non-uniform covenants with limited
variations by jurisdiction to constitute a uniform security instrument covering real property.
UNIFORM COVENANTS. Borrower and Lender covenant and agree as follows:
1. Payment of Principal, Interest, Escrow Items, Prepayment Charges, and Late Charges. Borrower shall pay
when due the principal of, and interest on, the debt evidenced by the Note and any prepayment charges and late charges
due under the Note. Borrower shall also pay funds for Escrow Items pursuant to Section 3. Payments due under the Note
and this Security Instrument shall be made in U.S. currency. However, if any check or other instrument received by Lender
as payment under the Note or this Security Instrument is returned to Lender unpaid, Lender may require that any or all
subsequent payments due under the Note and this Security Instrument be made in one or more of the following forms, as
selected by Lender: (a) cash; (b) money order; (c) certified check, bank check, treasurer's check or cashier's check, provided
any such check is drawn upon an institution whose deposits are insured by a federal agency, instrumentality, or entity; or
(d) Electronic Funds Transfer.
Payments are deemed received by Lender when received at the location designated in the Note or at such other
location as may be designated by Lender in accordance with the notice provisions in Section 15. Lender may return any
payment or partial payment if the payment or partial payments are insufficient to bring the Loan current. Lender may accept
any payment or partial payment insufficient to bring the Loan current, without waiver of any rights hereunder or prejudice
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to its rights to refuse such payment or partial payments in the future, but Lender is not obligated to apply such payments
at the time such payments are accepted. If each Periodic Payment is applied as of its scheduled due date, then Lender
need not pay interest on unapplied funds. Lender may hold such unapplied funds until Borrower makes payment to bring
the Loan current. If Borrower does not do so within a reasonable period of time, Lender shall either apply such funds or
return them to Borrower. If not applied earlier, such funds will be applied to the outstanding principal balance under the
Note immediately prior to foreclosure. No offset or claim which Borrower might have now or in the future against Lender
shall relieve Borrower from making payments due under the Note and this Security Instrument or performing the covenants
and agreements secured by this Security Instrument.
2. Application of Payments or Proceeds. Except as otherwise described in this Section 2, all payments accepted
and applied by Lender shall be applied in the following order of priority: (a) interest due under the Note; (b) principal due
under the Note; (c) amounts due under Section 3. Such payments shall be applied to each Periodic Payment in the order
in which it became due. Any remaining amounts shall be applied first to late charges, second to any other amounts due
under this Security Instrument, and then to reduce the principal balance of the Note.
If Lender receives a payment from Borrower for a delinquent Periodic Payment which includes a sufficient amount to
pay any late charge due, the payment may be applied to the delinquent payment and the late charge. If more than one
Periodic Payment is outstanding, Lender may apply any payment received from Borrower to the repayment of the Periodic
Payments if, and to the extent that, each payment can be paid in full. To the extent that any excess exists after the payment
is applied to the full payment of one or more Periodic Payments, such excess may be applied to any late charges due.
Voluntary prepayments shall be applied first to any prepayment charges and then as described in the Note.
Any application of payments, insurance proceeds, or Miscellaneous Proceeds to principal due under the Note shall not
extend or postpone the due date, or change the amount, of the Periodic Payments.
3. Funds for Escrow Items. Borrower shall pay to Lender on the day Periodic Payments are due under the Note,
until the Note is paid in full, a sum (the "Funds") to provide for payment of amounts due for: (a) taxes and assessments and
other items which can attain priority over this Security Instrument as a lien or encumbrance on the Property; (b) leasehold
payments or ground rents on the Property, if any; (c) premiums for any and all insurance required by Lender under Section 5;
and ( d) Mortgage Insurance premiums, if any, or any sums payable by Borrower to Lender in lieu of the payment of Mortgage
Insurance premiums in accordance with the provisions of Section 10. These items are called "Escrow Items:• At origination
or at any time during the term of the Loan, Lender may require that Community Association Dues, Fees, and Assessments,
if any, be escrowed by Borrower, and such dues, fees and assessments shall be an Escrow Item. Borrower shall promptly
furnish to Lender all notices of amounts to be paid under this Section. Borrower shall pay Lender the Funds for Escrow
Items unless Lender waives Borrower's obligation to pay the Funds for any or all Escrow Items. Lender may waive Bor-
rower's obligation to pay to Lender Funds for any or all Escrow Items at any time. Any such waiver may only be in writing.
In the event of such waiver, Borrower shall pay directly, when and where payable, the amounts due for any Escrow Items
for which payment of Funds has been waived by Lender and, if Lender requires, shall furnish to Lender receipts evidencing
such payment within such time period as Lender may require. Borrower's obligation to make such payments and to provide
receipts shall for all purposes be deemed to be a covenant and agreement contained in this Security Instrument, as the
phrase "covenant and agreement" is used in Section 9. If Borrower is obligated to pay Escrow Items directly, pursuant to a
waiver, and Borrower fails to pay the amount due for an Escrow Item, Lender may exercise its rights under Section 9 and
pay such amount and Borrower shall then be obligated under Section 9 to repay to Lender any such amount. Lender may
revoke the waiver as to any or all Escrow Items at any time by a notice given in accordance with Section 15 and, upon such
revocation, Borrower shall pay to Lender all Funds, and in such amounts, that are then required under this Section 3.
Lender may, at any time, collect and hold Funds in an amount (a) sufficient to permit Lender to apply the Funds at the
time specified under RES PA, and (b) not to exceed the maximum amount a lender can require under RESPA. Lender shall
estimate the amount of Funds due on the basis of current data and reasonable estimates of expenditures of future Escrow
Items or otherwise in accordance with Applicable Law.
The Funds shall be held in an institution whose deposits are insured by a federal agency, instrumentality, or entity
(including Lender, if Lender is an institution whose deposits are so insured) or in any Federal Home Loan Bank. Lender shall
apply the Funds to pay the Escrow Items no later than the time specified under RESPA. Lender shall not charge Borrower
for holding and applying the Funds, annually analyzing the escrow account, or verifying the Escrow Items, unless Lender
pays Borrower interest on the Funds and Applicable Law permits Lender to make such a charge. Unless an agreement is
made in writing or Applicable Law requires interest to be paid on the Funds, Lender shall not be required to pay Borrower
any interest or earnings on the Funds. Borrower and Lender can agree in writing, however, that interest shall be paid on
the Funds. Lender shall give to Borrower, without charge, an annual accounting of the Funds as required by RES PA.
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If there is a surplus of Funds held in escrow, as defined under RESPA, Lender shall account to Borrower for the excess
funds in accordance with RESPA. If there is a shortage of Funds held in escrow, as defined under RESPA, Lender shall
notify Borrower as required by RESPA, and Borrower shall pay to Lender the amount necessary to make up the shortage
in accordance with RESPA, but in no more than 12 monthly payments. If there is a deficiency of Funds held in escrow, as
defined under RESPA, Lender shall notify Borrower as required by RES PA, and Borrower shall pay to Lender the amount
necessary to make up the deficiency in accordance with RESPA, but in no more than 12 monthly payments.
Upon payment in full of all sums secured by this Security Instrument, Lender shall promptly refund to Borrower any
Funds held by Lender.
4. Charges; Liens. Borrower shall pay all taxes, assessments, charges, fines, and impositions attributable to the
Property which can attain priority over this Security Instrument, leasehold payments or ground rents on the Property, if
any, and Community Association Dues, Fees, and Assessments, if any. To the extent that these items are Escrow Items,
Borrower shall pay them in the manner provided in Section 3.
Borrower shall promptly discharge any lien which has priority over this Security Instrument unless Borrower: (a) agrees
in writing to the payment of the obligation secured by the lien in a manner acceptable to Lender, but only so long as Bor-
rower is performing such agreement; (b) contests the lien in good faith by, or defends against enforcement of the lien in,
legal proceedings which in Lender's opinion operate to prevent the enforcement of the lien while those proceedings are
pending, but only until such proceedings are concluded; or (c) secures from the holder of the lien an agreement satisfactory
to Lender subordinating the lien to this Security Instrument. If Lender determines that any part of the Property is subject to
a lien which can attain priority over this Security Instrument, Lender may give Borrower a notice identifying the lien. Within
10 days of the date on which that notice is given, Borrower shall satisfy the lien or take one or more of the actions set forth
above in this Section 4.
Lender may require Borrower to pay a one-time charge for a real estate tax verification and/or reporting service used
by Lender in connection with this Loan.
5. Property Insurance. Borrower shall keep the improvements now existing or hereafter erected on the Property
insured against loss by fire, hazards included within the term "extended coverage," and any other hazards including, but not
limited to, earthquakes and floods, for which Lender requires insurance. This insurance shall be maintained in the amounts
(including deductible levels} and for the periods that Lender requires. What Lender requires pursuant to the preceding sen-
tences can change during the term of the Loan. The insurance carrier providing the insurance shall be chosen by Borrower
subject to Lender's right to disapprove Borrower's choice, which right shall not be exercised unreasonably. Lender may
require Borrower to pay, in connection with this Loan, either: (a) a one-time charge for flood zone determination, certifica-
tion and tracking services; or (b) a one-time charge for flood zone determination and certification services and subsequent
charges each time remappings or similar changes occur which reasonably might affect such determination or certification.
Borrower shall also be responsible for the payment of any fees imposed by the Federal Emergency Management Agency
in connection with the review of any flood zone determination resulting from an objection by Borrower.
If Borrower fails to maintain any of the coverages described above, Lender may obtain insurance coverage, at Lender's
option and Borrower's expense. Lender is under no obligation to purchase any particular type or amount of coverage. There-
fore, such coverage shall cover Lender, but might or might not protect Borrower, Borrower's equity in the Property, or the
contents of the Property, against any risk, hazard or liability and might provide greater or lesser coverage than was previ-
ously in effect. Borrower acknowledges that the cost of the insurance coverage so obtained might significantly exceed the
cost of insurance that Borrower could have obtained. Any amounts disbursed by Lender under this Section 5 shall become
additional debt of Borrower secured by this Security Instrument. These amounts shall bear interest at the Note rate from the
date of disbursement and shall be payable, with such interest, upon notice from Lender to Borrower requesting payment.
All insurance policies required by Lender and renewals of such policies shall be subject to Lender's right to disapprove
such policies, shall include a standard mortgage clause, and shall name Lender as mortgagee and/or as an additional
loss payee and Borrower further agrees to generally assign rights to insurance proceeds to the holder of the Note up to the
amount of the outstanding loan balance. Lender shall have the right to hold the policies and renewal certificates. If Lender
requires, Borrower shall promptly give to Lender all receipts of paid premiums and renewal notices. If Borrower obtains any
form of insurance coverage, not otherwise required by Lender, for damage to, or destruction of, the Property, such policy
shall include a standard mortgage clause and shall name Lender as mortgagee and/or as an additional loss payee and
Borrower further agrees to generally assign rights to insurance proceeds to the holder of the Note up to the amount of the
outstanding loan balance.
In the event of loss, Borrower shall give prompt notice to the insurance carrier and Lender. Lender may make proof of
loss if not made promptly by Borrower. Unless Lender and Borrower otherwise agree in writing, any insurance proceeds,
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whether or not the underlying insurance was required by Lender, shall be applied to restoration or repair of the Property, if
the restoration or repair is economically feasible and Lender's security is not lessened. During such repair and restoration
period, Lender shall have the right to hold such insurance proceeds until Lender has had an opportunity to inspect such
Property to ensure the work has been completed to Lender's satisfaction, provided that such inspection shall be undertaken
promptly. Lender may disburse proceeds for the repairs and restoration in a single payment or in a series of progress pay-
ments as the work is completed. Unless an agreement is made in writing or Applicable Law requires interest to be paid on
such insurance proceeds, Lender shall not be required to pay Borrower any interest or earnings on such proceeds. Fees for
public adjusters, or other third parties, retained by Borrower shall not be paid out of the insurance proceeds and shall be the
sole obligation of Borrower. If the restoration or repair is not economically feasible or Lender's security would be lessened,
the insurance proceeds shall be applied to the sums secured by this Security Instrument, whether or not then due, with the
excess, if any, paid to Borrower. Such insurance proceeds shall be applied in the order provided for in Section 2.
If Borrower abandons the Property, Lender may file, negotiate and settle any available insurance claim and related
matters. If Borrower does not respond within 30 days to a notice from Lender that the insurance carrier has offered to settle
a claim, then Lender may negotiate and settle the claim. The 30-day period will begin when the notice is given. In either
event, or if Lender acquires the Property under Section 22 or otherwise, Borrower hereby assigns to Lender (a) Borrower's
rights to any insurance proceeds in an amount not to exceed the amounts unpaid under the Note or this Security Instru-
ment, and (b) any other of Borrower's rights (other than the right to any refund of unearned premiums paid by Borrower)
under all insurance policies covering the Property, insofar as such rights are applicable to the coverage of the Property.
Lender may use the insurance proceeds either to repair or restore the Property or to pay amounts unpaid under the Note
or this Security Instrument, whether or not then due.
6. Occupancy. Borrower shall occupy, establish, and use the Property as Borrower's principal residence within
60 days after the execution of this Security Instrument and shall continue to occupy the Property as Borrower's principal
residence for at least one year after the date of occupancy, unless Lender otherwise agrees in writing, which consent shall
not be unreasonably withheld, or unless extenuating circumstances exist which are beyond Borrower's control.
7. Preservation, Maintenance and Protection of the Property; Inspections. Borrower shall not destroy, damage
or impair the Property, allow the Property to deteriorate or commit waste on the Property. Whether or not Borrower is resid-
ing in the Property, Borrower shall maintain the Property in order to prevent the Property from deteriorating or decreasing
in value due to its condition. Unless it is determined pursuant to Section 5 that repair or restoration is not economically
feasible, Borrower shall promptly repair the Property if damaged to avoid further deterioration or damage. If insurance or
condemnation proceeds are paid in connection with damage to, or the taking of, the Property, Borrower shall be respon-
sible for repairing or restoring the Property only if Lender has released proceeds for such purposes. Lender may disburse
proceeds for the repairs and restoration in a single payment or in a series of progress payments as the work is completed.
If the insurance or condemnation proceeds are not sufficient to repair or restore the Property, Borrower is not relieved of
Borrower's obligation for the completion of such repair or restoration.
Lender or its agent may make reasonable entries upon and inspections of the Property. If it has reasonable cause,
Lender may inspect the interior of the improvements on the Property. Lender shall give Borrower notice at the time of or
prior to such an interior inspection specifying such reasonable cause.
a. Borrower's Loan Application. Borrower shall be in default if, during the Loan application process, Borrower or
any persons or entities acting at the direction of Borrower or with Borrower's knowledge or consent gave materially false,
misleading, or inaccurate information or statements to Lender (or failed to provide Lender with material information) in
connection with the Loan. Material representations include, but are not limited to, representations concerning Borrower's
occupancy of the Property as Borrower's principal residence.
9. Protection of Lender's Interest in the Property and Rights Under this Security Instrument. If (a) Borrower
fails to perform the covenants and agreements contained in this Security Instrument, (b) there is a legal proceeding that
might significantly affect Lender's interest in the Property and/or rights under this Security Instrument (such as a proceeding
in bankruptcy, probate, for condemnation or forfeiture, for enforcement of a lien which may attain priority over this Security
Instrument or to enforce laws or regulations), or (c) Borrower has abandoned the Property, then Lender may do and pay for
whatever is reasonable or appropriate to protect Lender's interest in the Property and rights under this Security Instrument,
including protecting and/or assessing the value of the Property, and securing and/or repairing the Property. Lender's actions
can include, but are not limited to: (a) paying any sums secured by a lien which has priority over this Security Instrument;
(b) appearing in court; and (c) paying reasonable attorneys' fees to protect its interest in the Property and/or rights under
this Security Instrument, including its secured position in a bankruptcy proceeding. Securing the Property includes, but is
not limited to, entering the Property to make repairs, change locks, replace or board up doors and windows, drain water
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from pipes, eliminate building or other code violations or dangerous conditions, and have utilities turned on or off. Although
Lender may take action under this Section 9, Lender does not have to do so and is not under any duty or obligation to do
so. It is agreed that Lender incurs no liability for not taking any or all actions authorized under this Section 9.
Any amounts disbursed by Lender under this Section 9 shall become additional debt of Borrower secured by this Security
Instrument. These amounts shall bear interest at the Note rate from the date of disbursement and shall be payable, with
such interest, upon notice from Lender to Borrower requesting payment.
If this Security Instrument is on a leasehold, Borrower shall comply with all the provisions of the lease. Borrower shall
not surrender the leasehold estate and interests herein conveyed or terminate or cancel the ground lease. Borrower shall
not, without the express written consent of Lender, alter or amend the ground lease. If Borrower acquires fee title to the
Property, the leasehold and the fee title shall not merge unless Lender agrees to the merger in writing.
10. Mortgage Insurance. If Lender required Mortgage Insurance as a condition of making the Loan, Borrower shall pay
the premiums required to maintain the Mortgage Insurance in effect. If, for any reason, the Mortgage Insurance coverage
required by Lender ceases to be available from the mortgage insurer that previously provided such insurance and Borrower
was required to make separately designated payments toward the premiums for Mortgage Insurance, Borrower shall pay
the premiums required to obtain coverage substantially equivalent to the Mortgage Insurance previously in effect, at a cost
substantially equivalent to the cost to Borrower of the Mortgage Insurance previously in effect, from an alternate mortgage
insurer selected by Lender. If substantially equivalent Mortgage Insurance coverage is not available, Borrower shall continue
to pay to Lender the amount of the separately designated payments that were due when the insurance coverage ceased
to be in effect. Lender will accept, use and retain these payments as a non-refundable loss reserve in lieu of Mortgage
Insurance. Such loss reserve shall be non-refundable, notwithstanding the fact that the Loan is ultimately paid in full, and
Lender shall not be required to pay Borrower any interest or earnings on such loss reserve. Lender can no longer require
loss reserve payments if Mortgage Insurance coverage (in the amount and for the period that Lender requires) provided by
an insurer selected by Lender again becomes available, is obtained, and Lender requires separately designated payments
toward the premiums for Mortgage Insurance. If Lender required Mortgage Insurance as a condition of making the Loan and
Borrower was required to make separately designated payments toward the premiums for Mortgage Insurance, Borrower
shall pay the premiums required to maintain Mortgage Insurance in effect, or to provide a non-refundable loss reserve,
until Lender's requirement for Mortgage Insurance ends in accordance with any written agreement between Borrower and
Lender providing for such termination or until termination is required by Applicable Law. Nothing in this Section 10 affects
Borrower's obligation to pay interest at the rate provided in the Note.
Mortgage Insurance reimburses Lender (or any entity that purchases the Note) for certain losses it may incur if Borrower
does not repay the Loan as agreed. Borrower is not a party to the Mortgage Insurance.
Mortgage insurers evaluate their total risk on all such insurance in force from time to time, and may enter into agree-
ments with other parties that share or modify their risk, or reduce losses. These agreements are on terms and conditions
that are satisfactory to the mortgage insurer and the other party (or parties) to these agreements. These agreements may
require the mortgage insurer to make payments using any source of funds that the mortgage insurer may have available
(which may include funds obtained from Mortgage Insurance premiums).
As a result of these agreements, Lender, any purchaser of the Note, another insurer, any reinsurer, any other entity, or
any affiliate of any of the foregoing, may receive (directly or indirectly) amounts that derive from (or might be characterized
as) a portion of Borrower's payments for Mortgage Insurance, in exchange for sharing or modifying the mortgage insurer's
risk, or reducing losses. If such agreement provides that an affiliate of Lender takes a share of the insurer's risk in exchange
for a share of the premiums paid to the insurer, the arrangement is often termed "captive reinsurance:' Further:
(a) Any such agreements will not affect the amounts that Borrower has agreed to pay for Mortgage Insurance,
or any other terms of the Loan. Such agreements will not increase the amount Borrower will owe for Mortgage
Insurance, and they will not entitle Borrower to any refund.
(b) Any such agreements will not affect the rights Borrower has-if any-with respect to the Mortgage Insur-
ance under the Homeowners Protection Act of 1998 or any other law. These rights may include the right to receive
certain disclosures, to request and obtain cancellation of the Mortgage Insurance, to have the Mortgage Insurance
terminated automatically, and/or to receive a refund of any Mortgage Insurance premiums that were unearned at
the time of such cancellation or termination.
11. Assignment of Miscellaneous Proceeds; Forfeiture. All Miscellaneous Proceeds are hereby assigned to and
shall be paid to Lender.
If the Property is damaged, such Miscellaneous Proceeds shall be applied to restoration or repair of the Property, if
the restoration or repair is economically feasible and Lender's security is not lessened. During such repair and restoration
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period, Lender shall have the right to hold such Miscellaneous Proceeds until Lender has had an opportunity to inspect such
Property to ensure the work has been completed to Lender's satisfaction, provided that such inspection shall be undertaken
promptly. Lender may pay for the repairs and restoration in a single disbursement or in a series of progress payments as the
work is completed. Unless an agreement is made in writing or Applicable Law requires interest to be paid on such Miscel-
laneous Proceeds, Lender shall not be required to pay Borrower any interest or earnings on such Miscellaneous Proceeds.
If the restoration or repair is not economically feasible or Lender's security would be lessened, the Miscellaneous Proceeds
shall be applied to the sums secured by this Security Instrument, whether or not then due, with the excess, if any, paid to
Borrower. Such Miscellaneous Proceeds shall be applied in the order provided for in Section 2.
In the event of a total taking, destruction, or loss in value of the Property, the Miscellaneous Proceeds shall be applied
to the sums secured by this Security Instrument, whether or not then due, with the excess, if any, paid to Borrower.
In the event of a partial taking, destruction, or loss in value of the Property in which the fair market value of the Prop-
erty immediately before the partial taking, destruction, or loss in value is equal to or greater than the amount of the sums
secured by this Security Instrument immediately before the partial taking, destruction, or loss in value, unless Borrower
and Lender otherwise agree in writing, the sums secured by this Security Instrument shall be reduced by the amount of the
Miscellaneous Proceeds multiplied by the following fraction: (a) the total amount of the sums secured immediately before
the partial taking, destruction, or loss in value divided by (b) the fair market value of the Property immediately before the
partial taking, destruction, or loss in value. Any balance shall be paid to Borrower.
In the event of a partial taking, destruction, or loss in value of the Property in which the fair market value of the
Property immediately before the partial taking, destruction, or loss in value is less than the amount of the sums secured
immediately before the partial taking, destruction, or loss in value, unless Borrower and Lender otherwise agree in writing,
the Miscellaneous Proceeds shall be applied to the sums secured by this Security Instrument whether or not the sums
are then due.
If the Property is abandoned by Borrower, or if, after notice by Lender to Borrower that the Opposing Party (as defined
in the next sentence) offers to make an award to settle a claim for damages, Borrower fails to respond to Lender within
30 days after the date the notice is given, Lender is authorized to collect and apply the Miscellaneous Proceeds either to
restoration or repair of the Property or to the sums secured by this Security Instrument, whether or not then due. "Opposing
Party" means the third party that owes Borrower Miscellaneous Proceeds or the party against whom Borrower has a right
of action in regard to Miscellaneous Proceeds.
Borrower shall be in default if any action or proceeding, whether civil or criminal, is begun that, in Lender's judgment,
could result in forfeiture of the Property or other material impairment of Lender's interest in the Property or rights under this
Security Instrument. Borrower can cure such a default and, if acceleration has occurred, reinstate as provided in Section
19, by causing the action or proceeding to be dismissed with a ruling that, in Lender's judgment, precludes forfeiture of
the Property or other material impairment of Lender's interest in the Property or rights under this Security Instrument. The
proceeds of any award or claim for damages that are attributable to the impairment of Lender's interest in the Property are
hereby assigned and shall be paid to Lender.
All Miscellaneous Proceeds that are not applied to restoration or repair of the Property shall be applied in the order
provided for in Section 2.
12. Borrower Not Released; Forbearance By Lender Not a Waiver. Extension of the time for payment or modifica-
tion of amortization of the sums secured by this Security Instrument granted by Lender to Borrower or any Successor in
Interest of Borrower shall not operate to release the liability of Borrower or any Successors in Interest of Borrower. Lender
shall not be required to commence proceedings against any Successor in Interest of Borrower or to refuse to extend time
for payment or otherwise modify amortization of the sums secured by this Security Instrument by reason of any demand
made by the original Borrower or any Successors in Interest of Borrower. Any forbearance by Lender in exercising any
right or remedy including, without limitation, Lender's acceptance of payments from third persons, entities or Successors
in Interest of Borrower or in amounts less than the amount then due, shall not be a waiver of or preclude the exercise of
any right or remedy.
13. Joint and Several Liability; Co-signers; Successors and Assigns Bound. Borrower covenants and agrees that
Borrower's obligations and liability shall be joint and several. However, any Borrower who co-signs this Security Instrument
but does not execute the Note (a "co-signer''): (a) is co-signing this Security Instrument only to mortgage, grant and convey
the co-signer's interest in the Property under the terms of this Security Instrument; (b) is not personally obligated to pay
the sums secured by this Security Instrument; and (c) agrees that Lender and any other Borrower can agree to extend,
modify, forbear or make any accommodations with regard to the terms of this Security Instrument or the Note without the
co-signer's consent.
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Subject to the provisions of Section 18, any Successor in Interest of Borrower who assumes Borrower's obligations
under this Security Instrument in writing, and is approved by Lender, shall obtain all of Borrower's rights and benefits under
this Security Instrument. Borrower shall not be released from Borrower's obligations and liability under this Security Instru-
ment unless Lender agrees to such release in writing. The covenants and agreements of this Security Instrument shall bind
(except as provided in Section 20) and benefit the successors and assigns of Lender.
14. Loan Charges. Lender may charge Borrower fees for services performed in connection with Borrower's default,
for the purpose of protecting Lender's interest in the Property and rights under this Security Instrument, including, but
not limited to, attorneys' fees, property inspection and valuation fees. In regard to any other fees, the absence of express
authority in this Security Instrument to charge a specific fee to Borrower shall not be construed as a prohibition on
the charging of such fee. Lender may not charge fees that are expressly prohibited by this Security Instrument or by
Applicable Law.
If the Loan is subject to a law which sets maximum loan charges, and that law is finally interpreted so that the
interest or other loan charges collected or to be collected in connection with the Loan exceed the permitted limits, then:
(a) any such loan charge shall be reduced by the amount necessary to reduce the charge to the permitted limit; and
(b) any sums already collected from Borrower which exceeded permitted limits will be refunded to Borrower. Lender may
choose to make this refund by reducing the principal owed under the Note or by making a direct payment to Borrower. If
a refund reduces principal, the reduction will be treated as a partial prepayment without any prepayment charge (whether
or not a prepayment charge is provided for under the Note). Borrower's acceptance of any such refund made by direct
payment to Borrower will constitute a waiver of any right of action Borrower might have arising out of such overcharge.
15. Notices. All notices given by Borrower or Lender in connection with this Security Instrument must be in writing.
Any notice to Borrower in connection with this Security Instrument shall be deemed to have been given to Borrower
when mailed by first class mail or when actually delivered to Borrower's notice address if sent by other means. Notice to
any one Borrower shall constitute notice to all Borrowers unless Applicable Law expressly requires otherwise. The notice
address shall be the Property Address unless Borrower has designated a substitute notice address by notice to Lender.
Borrower shall promptly notify Lender of Borrower's change of address. If Lender specifies a procedure for reporting
Borrower's change of address, then Borrower shall only report a change of address through that specified procedure.
There may be only one designated notice address under this Security Instrument at any one time. Any notice to Lender
shall be given by delivering it or by mailing it by first class mail to Lender's address stated herein unless Lender has
designated another address by notice to Borrower. Any notice in connection with this Security Instrument shall not be
deemed to have been given to Lender until actually received by Lender. If any notice required by this Security Instrument
is also required under Applicable Law, the Applicable Law requirement will satisfy the corresponding requirement under
this Security Instrument.
16. Governing Law; Severability; Rules of Construction. This Security Instrument shall be governed by federal
law and the law of the jurisdiction in which the Property is located. All rights and obligations contained in this Security
Instrument are subject to any requirements and limitations of Applicable Law. Applicable Law might explicitly or implicitly
allow the parties to agree by contract or it might be silent, but such silence shall not be construed as a prohibition against
agreement by contract. In the event that any provision or clause of this Security Instrument or the Note conflicts with
Applicable Law, such conflict shall not affect other provisions of this Security Instrument or the Note which can be given
effect without the conflicting provision.
As used in this Security Instrument: (a) words of the masculine gender shall mean and include corresponding neuter
words or words of the feminine gender; (b) words in the singular shall mean and include the plural and vice versa; and
(c) the word "may" gives sole discretion without any obligation to take any action.
17. Borrower's Copy. Borrower shall be given one copy of the Note and of this Security Instrument.
18. Transfer of the Property or a Beneficial Interest in Borrower. As used in this Section 18, "Interest in the Property"
means any legal or beneficial interest in the Property, including, but not limited to, those beneficial interests transferred in
a bond for deed, contract for deed, installment sales contract or escrow agreement, the intent of which is the transfer of
title by Borrower at a future date to a purchaser.
If all or any part of the Property or any Interest in the Property is sold or transferred (or if Borrower is not a natural
person and a beneficial interest in Borrower is sold or transferred) without Lender's prior written consent, Lender may require
immediate payment in full of all sums secured by this Security Instrument. However, this option shall not be exercised by
Lender if such exercise is prohibited by Applicable Law.
If Lender exercises this option, Lender shall give Borrower notice of acceleration. The notice shall provide a period of
not less than 30 days from the date the notice is given in accordance with Section 15 within which Borrower must pay all
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sums secured by this Security Instrument. If Borrower fails to pay these sums prior to the expiration of this period, Lender
may invoke any remedies permitted by this Security Instrument without further notice or demand on Borrower.
19. Borrower's Right to Reinstate After Acceleration. If Borrower meets certain conditions, Borrower shall have
the right to have enforcement of this Security Instrument discontinued at any time prior to the earliest of: (a) five days
before sale of the Property pursuant to any power of sale contained in this Security Instrument; (b) such other period
as Applicable Law might specify for the termination of Borrower's right to reinstate; or (c) entry of a judgment enforcing
this Security Instrument. Those conditions are that Borrower: (a) pays Lender all sums which then would be due under
this Security Instrument and the Note as if no acceleration had occurred; (b) cures any default of any other covenants or
agreements; (c) pays all expenses incurred in enforcing this Security Instrument, including, but not limited to, reasonable
attorneys' fees, property inspection and valuation fees, and other fees incurred for the purpose of protecting Lender's
interest in the Property and rights under this Security Instrument; and (d) takes such action as Lender may reasonably
require to assure that Lender's interest in the Property and rights under this Security Instrument, and Borrower's obliga-
tion to pay the sums secured by this Security Instrument, shall continue unchanged. Lender may require that Borrower
pay such reinstatement sums and expenses in one or more of the following forms, as selected by Lender: (a) cash;
(b) money order; (c) certified check, bank check, treasurer's check or cashier's check, provided any such check is drawn
upon an institution whose deposits are insured by a federal agency, instrumentality or entity; or (d) Electronic Funds
Transfer. Upon reinstatement by Borrower, this Security Instrument and obligations secured hereby shall remain fully
effective as if no acceleration had occurred. However, this right to reinstate shall not apply in the case of acceleration
under Section 18.
20. Sale of Note; Change of Loan Servicer; Notice of Grievance. The Note or a partial interest in the Note (together
with this Security Instrument) can be sold one or more times without prior notice to Borrower. A sale might result in a
change in the entity (known as the "Loan Servicer") that collects Periodic Payments due under the Note and this Security
Instrument and performs other mortgage loan servicing obligations under the Note, this Security Instrument, and Applicable
Law. There also might be one or more changes of the Loan Servicer unrelated to a sale of the Note. If there is a change
of the Loan Servicer, Borrower will be given written notice of the change which will state the name and address of the new
Loan Servicer, the address to which payments should be made and any other information RESPA requires in connection
with a notice of transfer of servicing. If the Note is sold and thereafter the Loan is serviced by a Loan Servicer other than
the purchaser of the Note, the mortgage loan servicing obligations to Borrower will remain with the Loan Servicer or be
transferred to a successor Loan Servicer and are not assumed by the Note purchaser unless otherwise provided by the
Note purchaser.
Neither Borrower nor Lender may commence, join, or be joined to any judicial action (as either an individual litigant or
the member of a class) that arises from the other party's actions pursuant to this Security Instrument or that alleges that
the other party has breached any provision of, or any duty owed by reason of, this Security Instrument, until such Borrower
or Lender has notified the other party (with such notice given in compliance with the requirements of Section 15) of such
alleged breach and afforded the other party hereto a reasonable period after the giving of such notice to take corrective
action. If Applicable Law provides a time period which must elapse before certain action can be taken, that time period will
be deemed to be reasonable for purposes of this paragraph. The notice of acceleration and opportunity to cure given to
Borrower pursuant to Section 22 and the notice of acceleration given to Borrower pursuant to Section 18 shall be deemed
to satisfy the notice and opportunity to take corrective action provisions of this Section 20.
21. Hazardous Substances. As used in this Section 21: (a) "Hazardous Substances" are those substances defined
as toxic or hazardous substances, pollutants, or wastes by Environmental Law and the following substances: gasoline,
kerosene, other flammable or toxic petroleum products, toxic pesticides and herbicides, volatile solvents, materials con-
taining asbestos or formaldehyde, and radioactive materials; (b) "Environmental Law" means federal laws and laws of
the jurisdiction where the Property is located that relate to health, safety or environmental protection; (c) "Environmental
Cleanup" includes any response action, remedial action, or removal action, as defined in Environmental Law; and (d) an
"Environmental Condition" means a condition that can cause, contribute to, or otherwise trigger an Environmental Cleanup.
Borrower shall not cause or permit the presence, use, disposal, storage, or release of any Hazardous Substances, or
threaten to release any Hazardous Substances, on or in the Property. Borrower shall not do, nor allow anyone else to do,
anything affecting the Property (a) that is in violation of any Environmental Law, (b) which creates an Environmental Condi-
tion, or (c) which, due to the presence, use, or release of a Hazardous Substance, creates a condition that adversely affects
the value of the Property. The preceding two sentences shall not apply to the presence, use, or storage on the Property of
small quantities of Hazardous Substances that are generally recognized to be appropriate to normal residential uses and
to maintenance of the Property (including, but not limited to, hazardous substances in consumer products).
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Borrower shall promptly give Lender written notice of (a) any investigation, claim, demand, lawsuit or other action by
any governmental or regulatory agency or private party involving the Property and any Hazardous Substance or Envi-
ronmental Law of which Borrower has actual knowledge, (b) any Environmental Condition, including but not limited to,
any spilling, leaking, discharge, release or threat of release of any Hazardous Substance, and (c) any condition caused
by the presence, use or release of a Hazardous Substance which adversely affects the value of the Property. If Bor-
rower learns, or is notified by any governmental or regulatory authority, or any private party, that any removal or other
remediation of any Hazardous Substance affecting the Property is necessary, Borrower shall promptly take all necessary
remedial actions in accordance with Environmental Law. Nothing herein shall create any obligation on Lender for an
Environmental Cleanup.
NON-UNIFORM COVENANTS. Borrower and Lender further covenant and agree as follows:
22. Acceleration; Remedies. Lender shall give notice to Borrower prior to acceleration following Borrower's
breach of any covenant or agreement in this Security Instrument (but not prior to acceleration under Section 18
unless Applicable Law provides otherwise). The notice shall specify: (a) the default; (b) the action required to cure
the default; (c) a date, not less than 30 days from the date the notice is given to Borrower, by which the default must
be cured; and (d) that failure to cure the default on or before the date specified in the notice may result in accel-
eration of the sums secured by this Security Instrument and sale of the Property. The notice shall further inform
Borrower of the right to reinstate after acceleration and the right to bring a court action to assert the non-existence
of a default or any other defense of Borrower to acceleration and sale. If the default is not cured on or before the
date specified in the notice, Lender at its option may require immediate payment in full of all sums secured by this
Security Instrument without further demand and may invoke the power of sale and any other remedies permitted
by Applicable Law. Lender shall be entitled to collect all expenses incurred in pursuing the remedies provided in
this Section 22, including, but not limited to, reasonable attorneys' fees and costs of title evidence.
If Lender invokes the power of sale, Lender shall execute or cause Trustee to execute a written notice of the
occurrence of an event of default and of Lender's election to cause the Property to be sold. Trustee shall cause
this notice to be recorded in each county in which any part of the Property is located. Lender or Trustee shall
mail copies of the notice as prescribed by Applicable Law to Borrower and to the other persons prescribed by
Applicable Law. Trustee shall give public notice of sale to the persons and in the manner prescribed by Applicable
Law. After the time required by Applicable Law, Trustee, without demand on Borrower, shall sell the Property at
public auction to the highest bidder at the time and place and under the terms designated in the notice of sale
in one or more parcels and in any order Trustee determines. Trustee may postpone sale of all or any parcel of the
Property by public announcement at the time and place of any previously scheduled sale. Lender or its designee
may purchase the Property at any sale.
Trustee shall deliver to the purchaserTrustee's deed conveying the Property without any covenant or warranty,
expressed or implied. The recitals in the Trustee's deed shall be prima facie evidence of the truth of the statements
made therein. Trustee shall apply the proceeds of the sale in the following order: (a) to all expenses of the sale,
including, but not limited to, reasonable Trustee's and attorneys' fees; (b) to all sums secured by this Security
Instrument; and (c) any excess to the person or persons legally entitled to it.
23. Reconveyance. Upon payment of all sums secured by this Security Instrument, Lender shall request Trustee to
reconvey the Property and shall surrender this Security Instrument and all notes evidencing debt secured by this Security
Instrument to Trustee. Trustee shall reconvey the Property without warranty to the person or persons legally entitled to it.
Lender may charge such person or persons a reasonable fee for reconveying the Property, but only if the fee is paid to a
third party (such as the Trustee) for services rendered and the charging of the fee is permitted under Applicable Law. If the
fee charged does not exceed the fee set by Applicable Law, the fee is conclusively presumed to be reasonable.
24. Substitute Trustee. Lender, at its option, may from time to time appoint a successor trustee to any Trustee
appointed hereunder by an instrument executed and acknowledged by Lender and recorded in the office of the Recorder
of the county in which the Property is located. The instrument shall contain the name of the original Lender, Trustee and
Borrower, the book and page where this Security Instrument is recorded and the name and address of the successor
trustee. Without conveyance of the Property, the successor trustee shall succeed to all the title, powers and duties conferred
upon the Trustee herein and by Applicable Law. This procedure for substitution of trustee shall govern to the exclusion of
all other provisions for substitution.
25. Statement of Obligation Fee. Lender may collect a fee not to exceed the maximum amount permitted by Applicable
Law for furnishing the statement of obligation as provided by Section 2943 of the Civil Code of California.
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The undersigned Borrower requests that a copy of any Notice of Default and any Notice of Sale under this Security
Instrument be mailed to Borrower at the address set forth above.
BY SIGNING BELOW, Borrower accepts and agrees to the terms and covenants contained in this Security Instrument
and in any Rider executed by Borrower and recorded with it.
!ft:_, k!f;vf I ~It JI I '1
.,,.,,.MA-,+-.R,.,..,.YA~M.,,..,.K.,,.,..,H""'6:~J ---------------...... D---AT=E (Seal)
A notary public or other officer completing this certificate verifies only the identity of the individual who
signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that
document.
State of CALIFORNIA
County of SAN DIEGO
On :D~~~ \ :}.) ~, l 9 before me, t..N t"\~l.."'---~~~ f,_, blcc_
(here insert name and title of the officer), personally appeared MARYAM KHALAJ, who proved to me on the
basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument
and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies}, and that
by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s)
acted, executed the instrument.
I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing
paragraph is true and correct.
WITNESS my hand and official seal.
Signature cf, N v,----..~~
____________ (NOTARY)
(SEAL)
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Lender: CrossCountry Mortgage, LLC
NMLS ID: 3029
Loan Originator: Chaz Hinz
NMLS ID: 309521
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Escrow No.: S K60117 -006-AM4
EXHIBIT "A"
Legal Description
A CONDOMINIUM COMPRISED OF:
PARCEL 1:
AN UNDIVIDED FEE SIMPLE INTEREST AS A TENANT IN COMMON IN AND TO THE COMMON AREA IN
THE MODULE IN WHICH THE RESIDENTIAL UNIT DESCRIBED IN PARCEL 2 BELOW IS LOCATED EQUAL
TO THE RECIPROCAL OF THE NUMBER OF RESIDENTIAL UNITS LOCATED WITHIN SUCH MODULE, AS
SHOWN ON THE AMENDED AND RESTATED CONDOMINIUM PLAN FOR KENSINGTON AT THE SQUARE,
RECORDED IN THE OFFICE OF THE COUNTY RECORDER OF SAN DIEGO COUNTY, CALIFORNIA, ON
JUNE 13, 2019, AS DOCUMENT NO. 2019-0230474, AND ANY AMENDMENTS OR SUPPLEMENTS THERETO
(COLLECTIVELY "CONDOMINIUM PLAN"), LOCATED IN A PORTION OF LOT 1 OF CARLSBAD TRACT NO.
14-09 UPTOWN BRESSI RANCH, IN THE CITY OF CARLSBAD, COUNTY OF SAN DIEGO, STATE OF
CALIFORNIA, ACCORDING TO MAP THEREOF NO. 16253, FILED IN THE OFFICE OF THE COUNTY
RECORDER OF SAN DIEGO COUNTY, MARCH 9, 2018 ("MAP").
PARCEL 2:
RESIDENTIAL UNIT NO. 117, AS SHOWN AND DESCRIBED ON THE CONDOMINIUM PLAN;
PARCEL 3:
AN EXCLUSIVE EASEMENT TO USE EACH PORTION OF THE ASSOCIATION PROPERTY, IF ANY,
DESIGNATED IN THE CONDOMINIUM PLAN AS BEING AN EXCLUSIVE USE EASEMENT AREA
APPURTENANT TO THE RESIDENTIAL UNIT DESCRIBED IN PARCEL 2 ABOVE FOR THE PURPOSES
DESCRIBED IN THE DECLARATION OF COVENANTS, CONDITIONS AND RESTRICTIONS AND
ESTABLISHMENT OF EASEMENTS OF KENSINGTON AT THE SQUARE RECORDED IN THE OFFICIAL
RECORDS OF THE COUNTY RECORDER OF SAN DIEGO COUNTY, CALIFORNIA ON JUNE 13, 2019 AS
DOCUMENT NO. 2019-0230475, AND ANY AMENDMENTS AND SUPPLEMENTS THERETO (COLLECTIVELY,
THE "DECLARATION").
PARCEL 4:
A NON-EXCLUSIVE TEMPORARY EASEMENT FOR PEDESTRIAN AND VEHICULAR ACCESS, INGRESS
AND EGRESS BY GRANTEE OVER, UPON AND ACROSS THE PRIVATE STREETS MORE PARTICULARLY
DESCRIBED AS STREET MODULE A, STREET MODULE B, STREET MODULE C, AND STREET MODULE D,
AS SHOWN ON THE CONDOMINIUM PLAN, AND DESCRIBED IN THAT CERTAIN ACCESS EASEMENT
GRANT DEED RECORDED IN THE OFFICIAL RECORDS OF THE COUNTY RECORDER OF SAN DIEGO
COUNTY ON SEPTEMBER 4, 2019 AS DOCUMENT NO. 2019-0380430, WHICH EASEMENT IS
APPURTENANT TO THE RESIDENTIAL UNIT DESCRIBED IN PARCEL 2 ABOVE.
PARCEL 5:
A NON-EXCLUSIVE EASEMENT, IN COMMON WITH OTHER OWNERS, FOR ACCESS, INGRESS AND
EGRESS, IN, TO, OVER, UNDER AND ACROSS CERTAIN PORTIONS OF THE ASSOCIATION PROPERTY
DESCRIBED IN THE DECLARATION, SUBJECT TO THE LIMITATIONS SET FORTH THEREIN, WHICH
EASEMENT IS APPURTENANT TO THE RESIDENTIAL UNIT DESCRIBED ABOVE.
CONDOMINIUM RIDER
LOAN #: 40501905576945
MIN: 1007191-0000432088-1
THIS CONDOMINIUM RIDER is made this 10th day of December, 2019
and is incorporated into and shall be deemed to amend and supplement the Mortgage,
Deed of Trust, or Security Deed (the "Security Instrument") of the same date given by
the undersigned (the "Borrower") to secure Borrower's Note to Crosscountry
Mortgage, LLC, a Limited Liability Company
(the "Lender")
of the same date and covering the Property described in the Security Instrument and
located at: 6034 Colt Place Unit 301, Carlsbad, CA 92009.
The Property includes a unit in, together with an undivided interest in the common
elements of, a condominium project known as: Kensington @ the Square
(the "Condominium Project").
If the owners association or other entity which acts for the Condominium Project (the
"Owners Association") holds title to property for the benefit or use of its members or
shareholders, the Property also includes Borrower's interest in the Owners Association
and the uses, proceeds and benefits of Borrower's interest.
CONDOMINIUM COVENANTS. In addition to the covenants and agreements
made in the Security Instrument, Borrower and Lender further covenant and agree as
follows:
A. Condominium Obligations. Borrower shall perform all of Borrower's obligations
under the Condominium Project's Constituent Documents. The "Constituent Documents"
are the: (i) Declaration or any other document which creates the Condominium Project;
(ii) by-laws; (iii) code of regulations; and (iv) other equivalent documents. Borrower shall
promptly pay, when due, all dues and assessments imposed pursuant to the Constituent
Documents.
B. Property Insurance. So long as the Owners Association maintains, with a generally
accepted insurance carrier, a "master" or "blanket" policy on the Condominium Project
which is satisfactory to Lender and which provides insurance coverage in the amounts
(including deductible levels), for the periods, and against loss by fire, hazards included within
the term "extended coverage," and any other hazards, including, but not limited to,
MULTISTATE CONDOMINIUM RIDER--Single Family--Fannie Mae/Freddie Mac UNIFORM INSTRUMENT
Form 3140 1/01
Ellie Mae, Inc. Page 1 of 3 F3140RLU 0307
F3140RLU (CLS)
12/10/201911:10AM PST
LOAN #: 40501905576945
earthquakes and floods, from which Lender requires insurance, then: (i) Lender waives the
provision in Section 3 for the Periodic Payment to Lender of the yearly premium installments
for property insurance on the Property; and (ii) Borrower's obligation under Section 5 to
maintain property insurance coverage on the Property is deemed satisfied to the extent that
the required coverage is provided by the Owners Association policy.
\/\/hat Lender requires as a condition of this waiver can change during the tern, of the loan.
Borrower shall give Lender prompt notice of any lapse in required property
insurance coverage provided by the master or blanket policy.
In the event of a distribution of property insurance proceeds in lieu of restoration or
repair following a loss to the Property, whether to the unit or to common elements, any
proceeds payable to Borrower are hereby assigned and shall be paid to Lender for
application to the sums secured by the Security Instrument, whether or not then due,
with the excess, if any, paid to Borrower.
C. Public Liability Insurance. Borrower shall take such actions as may be
reasonable to insure that the Owners Association maintains a public liability insurance
policy acceptable in form, amount, and extent of coverage to Lender.
D. Condemnation. The proceeds of any award or claim for damages, direct or
consequential, payable to Borrower in connection with any condemnation or other
taking of all or any part of the Property, whether of the unit or of the common elements,
or for any conveyance in lieu of condemnation, are hereby assigned and shall be paid
to Lender. Such proceeds shall be applied by Lender to the sums secured by the
Security Instrument as provided in Section 11.
E. Lender's Prior Consent. Borrower shall not, except after notice to Lender and
with Lender's prior written consent, either partition or subdivide the Property or consent
to: (i) the abandonment or termination of the Condominium Project, except for
abandonment or termination required by law in the case of substantial destruction by
fire or other casualty or in the case of a taking by condemnation or eminent domain; (i1)
any amendment to any provision of the Constituent Documents if the provision is for the
express benefit of Lender; (iii) termination of professional management and assumption
of self-management of the Owners Association; or (iv) any action which would have the
effect of rendering the public liability insurance coverage maintained by the Owners
Association unacceptable to Lender.
F. Remedies. If Borrower does not pay condominium dues and assessments
when due, then Lender may pay them. Any amounts disbursed by Lender under this
paragraph F shall become additional debt of Borrower secured by the Security
Instrument. Unless Borrower and Lender agree to other terms of payment, these
amounts shall bear interest from the date of disbursement at the Note rate and shall be
payable, with interest, upon notice from Lender to Borrower requesting payment.
MULTISTATE CONDOMINIUM RIDER--Single Family--Fannie Mae/Freddie Mac UNIFORM INSTRUMENT
Form 3140 1/01
Ellie Mae, Inc. Page 2 of 3 F3140RLU 0307
F3140RLU (CLS)
12/10/201911:10AM PST
LOAN #: 40501905576945
BY SIGNING BELOW, Borrower accepts and agrees to the terms and covenants
contained in this Condominium Rider.
Mt!!:J f ~/{ ).,// 1 (Seal)
DATE
MULTISTATE CONDOMINIUM RIDER--Single Family--Fannie Mae/Freddie Mac UNIFORM INSTRUMENT
Form 3140 1/01
Ellie Mae, Inc. Page 3 of 3 F3140RLU 0307
F3140RLU (CLS)
12/10/201911:10AM PST
Recording Requested by:
F:NTG Builder Services
RECORDING REQUESTED BY:
FNTG Builder Services
Escrow No.: SK60117-006-AM4
Title No.: SK60117-006-KC
WHEN RECORDED MAIL DOCUMENT AND
TAX STATEMENT TO:
City of Carlsbad
City Clerks Office
1200 Carlsbad Village Drive
Carlsbad, CA 92008
APN: 213-262-22-00 WOP
DOC# 2019-0610316
111111111111 lllll 111111111111111111111111111111111111111111111 IIII IIII
Dec 27, 2019 04:22 PM
OFFICIAL RECORDS
Ernest J. Dronenburg, Jr.,
SAN DIEGO COUNTY RECORDER
FEES: $0.00 (S82 Atkins: $0.00)
PCOR: N/A
PAGES: 35
SPACE ABOVE THIS LINE FOR RECORDER'S USE
The undersigned declares exemption under the following:
~ Exempt from fee per GC 27383 ; No fee shall be charged by
the recorder for services rendered to the State, to any
muniolpallty, county In the State or other political subdiv111on
thereof, except for making a copy of a paper or record.·:::fo<'
Exempt from fee per GC 27388.1 (a) (2);
recorded concurrently in connection with
a transfer subject fo the imposition of
documentary transfer tax
DECLARATION OF RESTRICTIVE COVENANTS REGARDING RESTRICTIONS
ON TRANSFER OF PROPERTY, OCCUPANCY RESTRICTIONS, REFINANCING
RESTRICTIONS, AND OPTION TO PURCHASE
Title Page of Document to Record
REC00059 (OSI Rev. 4/5/18)
DOCUMENT TITLE
Escrow No.: SHK70057-006-AM4
Recording Requested by:
FNTG Builder Services . s 'i<.fuO I I?-olJ{p ltfr1 I k ~
Recording requested by and
when recorded mail to:
City of Carlsbad
City Clerk's Office
1200 Carlsbad Village Drive
Carlsbad, CA 92008 * No fee for recording pursuant to~
Government Code Section 27381
DECLARATION OF RESTRICTIVE COVENANTS REGARDING RESTRICTIONS ON
TRANSFER OF PROPERTY, OCCUPANCY RESTRICTIONS, REFINANCING
RESTRICTIONS, AND OPTION TO PURCHASE
(City of Carlsbad Homebuyer Program)
Owner: Maryam Khalaj
Address of Property: 6034 Colt Place #301
Carlsbad, CA 92009
This Declaration of Restrictive Covenants Regarding Restrictions on Transfer of
Property, Occupancy Restrictions, Refinancing Restrictions and Option to Purchase ("Resale
Restriction Agreement") is entered into as of this 18th day of November , 201.2_,
by and between the City of Carlsbad a municipal corporation ("City"), and Maryam Khalaj, A
Single Woman ("Owner").
RECITALS
A. The City has developed a second mortgage program designed to assist qualified
low or moderate income households purchase their homes located within the City of Carlsbad
("Homebuyer Program").
B. In connection with the Home buyer Program and in fulfillment of its inclusionary
obligation pursuant to an Affordable Housing Agreement ("Affordable Housing Agreement")
between Shea Homes Limited Partnership, a California limited partnership ("Developer") and
the City dated November 11, 2017, the Developer made a loan ("Homebuyer Loan") in the
amount of Three Hundred Thirty Thousand Eight Hundred Four Dollars ($330,804) to allow for
the purchase of a single-family dwelling by a low income household located in Carlsbad,
California on that certain real property and more paiticularly described in Exhibit A ("Property"),
and then assigned the Homebuyer Loan to the City.
C. As used herein, the term "Property" includes both the real property and all
improvements now or hereafter erected thereon (including, but not limited to the residential
dwelling unit), and all easements, rights, appurtenances, and all fixtures now or hereafter
attached thereto.
IO I 0/17/2032990.2
D. The "Original Affordable Purchase Price" of the Property is One Hundred Fifty Nine
Thousand One Hundred Ninety Six Dollars ($159,196). The Original Affordable Purchase Price
is the effective price of the Residence paid by the Owner. The actual price of the Residence is
equal to the Original Affordable Purchase Price plus the amount of the Promissory Note ("Full
Purchase Price"). Owner is a low income household.
E. The Loan is evidenced by a promissory note in the amount of the Loan ("City Note").
This Agreement and the City Note shall be secured by a deed of trust ("City Deed of Trust")
subordinate to the lien of First Lender Deed of Trust.
F. The Home buyer Loan is evidenced by a promissory note in the amount of the
Loan ("City Note"). This Agreement and the City Note shall be secured by a deed of trust ("City
Deed of Trust") subordinate to the lien of First Lender Deed of Trust.
G. The purpose of this Agreement is to place resale controls on the Property, to
provide the City an option to purchase the Property at a restricted price, and to ensure that the
Owner complies with the Homebuyer Program requirements.
H. This Agreement and the City Note require repayment of the Home buyer Loan
plus contingent interest and, in certain instances, payment of excess proceeds of sale. This
Agreement will remain in full effect as an encumbrance on the Property after any prepayment of
the City Note by the Owner.
NOW, THEREFORE, in consideration of the benefits received by the Owner and the
City, the Owner and the City agree, as follows:
1. DEFINITIONS AND EXHIBITS
A. The following terms are specifically defined for this Agreement and their
definitions can be found in the Sections indicated below:
(1) "Affordable Sales Price" -Section 14A(l ).
(2) "Agreement" -first sentence of the Agreement on page 1.
(3) "City" -first sentence of the Agreement on page 1.
(4) "City Deed of Trust" -Recital F.
(5) "City Designated Purchaser" -Section 12B.
(6) "City Note" -Recital F.
(7) "City Option" -Section 12A.
(8) "City Response Notice" -Section 10.
2
IO I 0/17/2032990.2
(9) "Default" -Section 18
(10) "Eligible Purchaser" Section 15B.
(11) "Excess Sales Proceeds" -Section 16.
(12) "Extended Period" - 1 OC.
(13) "Fair Market Value" -Section 14B.
(14) "First Lender" -Recital E.
(15) "First Lender Deed of Trust" or "First Mortgage"-Recital E.
(16) "First Lender Loan" -Recital E.
(17) "Full Purchase Price" -Recital D.
( 18) "Full Sales Price" -Section 14A.
(19) "Homebuyer Loan" -Recital B.
(20) "HUD" -Section 30.
(21) "Initial Period" - 1 OB.
(22) "Market Purchaser" -Section 1 0C.
(23) "Maximum Restricted Resale Price" -Section 14.
(24) "Median Income" -Section 14A.
(25) "Official Records" -Recital E.
(26) "Original Affordable Purchase Price" -Recital D.
(27) "Owner" -first sentence of the Agreement on page 1.
(28) "Owner's Notice of Intent to Transfer" -Section 8.
(29) "Property" -Recital B.
(30) "Proposed Purchaser" -Section 15A.
(31) "Transfer" -Section 7.
3
IO I 0/17/2032990.2
(32) "Unauthorized Rental Proceeds" -Section 4.
B. The following Exhibits are attached to this Agreement:
(1) Exhibit A:
(2) Exhibit B:
(3) Exhibit C:
(4) Exhibit D:
(5) Exhibit E:
(6) Exhibit F:
2. OWNER CERTIFICATIONS
Legal Description of Property
Form of Owner Occupancy Certification
Form of Owner's Notice of Intent to Transfer
Form of City Response Notice
Form of Owner Acknowledgement of City Response
Notice
Form of Owner Request for City Subordination to
Refinanced First Lender Loan
The Owner certifies that: (i) the financial and other information previously provided in
order to qualify to purchase the Property is true and correct as of the date first written above; (ii)
the Owner is an Eligible Purchaser; (iii) the Owner has disclosed all individuals that shall reside
at the Property; and (iv) the Owner shall occupy the Property as the Owner's principal place of
residence.
3. OCCUPANCY OF PROPERTY
The Owner shall occupy the Property as the Owner's principal place of residence within
sixty (60) days after the close of escrow on the Homebuyer Loan. Failure by the Owner to
occupy the Property as the Owner's principal place of residence shall constitute a Default under
this Agreement for which the City may exercise its option to purchase pursuant to Section 21
below. The Owner shall be considered as occupying the Property if the Owner is residing at the
Property for at least ten ( 10) months out of each calendar year. The Owner shall provide an
annual written certification in the form shown in the attached Exhibit B, to the City that the
Owner is occupying the Property as his or her principal place of residence, and listing all
occupants residing at the Property. No later than ten (10) days after receipt of the City's written
request, the Owner shall provide any additional information and documents which the City
requests including but not limited to tax returns and bank statements, which may evidence
whether the Owner is occupying the Property. Failure to provide any additional information or
documentation requested shall constitute a Default under this Agreement.
4. NO LEASING OF PROPERTY
The Owner shall not lease all. or any portion of, the Property to another party. Any lease.
sublease, or any other renting of the Property to a third-party is prohibited and shall be a Default
under this Agreement and the City Deed of Trust. For the avoidance of doubt, the City and the
4
IO I 0/ I 7 /2032990.2
Owner agree and acknowledge that: (i) the Property (or any portion of the Property) is
prohibited from being used a "short-term vacation rental" (as such term is defined in Chapter
5.60 of the City of Carlsbad Municipal Code, as may be amended from time to time); (ii) no
portion of the Property may be used for tourist or transient use, or any other short-term rental of
the Property; and (iii) listing the Property on any "hosting platform" (as defined in California
Business & Professions Code 22590, as may be amended from time to time), including, but not
limited to any Internet-based "hosting platform", such as "airbnb.com", or any similar service, is
prohibited. All proceeds derived from any leasing, subleasing, or any other activity prohibited
by this Section are defined as "Unauthorized Rental Proceeds". In addition to all other available
rights and remedies set forth in this Agreement, in the event of violation of this Section, the
Owner shall pay to the City all Unauthorized Rental Proceeds in accordance with Section 19.
5. HOMEBUYER EDUCATION CLASS
The Owner shall attend all sessions of a first-time home buyer education class offered by
Clearpoint Credit Counseling Solutions.
6. MAINTENANCE AND INSURANCE PROCEEDS
A. The Owner shall maintain the Property, including landscaping, in good repair and
in a neat, clean and orderly condition and will not commit waste or permit deterioration of the
Property. Failure by the Owner to maintain the Property shall constitute a Default under this
Agreement for which the City may exercise the City Option to purchase the Property pursuant to
Section 21 below.
B. The Owner shall maintain a standard fire and extended coverage home insurance
policy equal to the replacement value of the Property (adjusted every five (5) years by appraisal,
if requested by City), naming the City as an additional insured. Additional insurance
requirements are set forth in Section 6 of the City Deed of Trust.
7. TRANSFER AND SALE RESTRICTIONS
Any Transfer of the Property will be subject to the provisions of this Agreement
including, without limitation, exercise of the City Option pursuant to Section 12 below.
"Transfer" shall mean any sale, assignment or transfer, voluntary or involuntary, of any interest
in the Property, including, but not limited to, a fee simple interest, a joint tenancy interest,
tenancy in common interest, a life estate, a leasehold interest, an interest evidenced by a land
contract by which possession of the Property is transferred and Owner retains title. Any Transfer
without satisfaction of the provisions of this Agreement is prohibited. A Transfer shall not
include a transfer: (i) to an existing spouse who is also an obligor under the City Note; (ii) by the
Owner to a spouse where the spouse becomes the co-owner of the Property; (iii) between
spouses as part of a marriage dissolution proceeding; (iv) to an existing spouse of Owner by
devise or inheritance following the death of Owner; (v) by Owner into an inter vivos revocable
trust in which Owner is the Trustor; or (vi) refinance of the First Mortgage meeting the
requirements of Section 28 of this Agreement; provided, however, that Owner shall provide
written notice of all such transfers to City pursuant to Section 8 below; and Owner shall continue
5
IO I 0/17/2032990.2
to occupy the Property as his or her principal place of residence ( except where the transfer occurs
pursuant to subsection (iii) or (iv) above, in which event the transferee shall owner-occupy the
Property and affirmatively assume Owner's obligations under this Agreement, the City Note and
the City Deed of Trust).
8. NOTICE OF INTENDED TRANSFER
A. In the event the Owner intends to transfer (including without limitation all
"Transfers" as defined in Section 7) or vacate the Property, the Owner shall promptly give the
City written notice of such intent (the "Owner's Notice oflntent to Transfer") in the form shown
in the attached Exhibit C. The Owner shall give the City the Owner's Notice of Intent to
Transfer prior to notifying real estate brokers or lenders of Owner's intent to Transfer the
Property and prior to listing of the Property on the Multiple Listing Service. The Owner's Notice
of Intent to Transfer shall be sent to the City in the manner and at the address provided in Section
33 of this Agreement. The Owner's Notice of Intent to Transfer shall include the information
necessary for the City to determine the Maximum Restricted Resale Price of the Property,
including the following information:
( 1) the address of the Property;
(2) the date of purchase of the Property by the Owner;
(3) the Original Affordable Purchase Price of the Property;
(4) the Full Purchase Price of the Property (which is the Original Affordable
Purchase Price plus the original amount of the Home buyer Loan).
( 5) a copy of the HUD-1 Settlement Statement or equivalent document from
the close of escrow on the Owner's purchase of the Property;
(6) the date on which Owner intends to vacate Property;
(7) the date the Property will be placed on the market; and
(8) the name and phone number of the person to contact to schedule
inspection of the Property by the City.
9. OWNER PREPARATION OF PROPERTY FOR SALE
A. The Owner may not wish to contract with a real estate broker to sell the
Property until the Owner has received the City Response Notice pursuant to Section 10
below, as the services of a broker will not be required if the City exercises the City Option
to purchase the Property pursuant to Section 12 below.
6
IO 10/17/2032990.2
B. Following delivery to the City of the Owner's Notice oflntent to Transfer, the
Owner shall prepare the Property for sale, as follows:
(1) within thirty (30) days of delivery of the Owner's Notice oflntent to
Transfer, the Owner shall obtain and deliver to the City a current written report of inspection of
the Property by a licensed structural pest control operator;
(2) within the sooner of: (a) sixty (60) days from the date of delivery of the
Owner's Notice of Intent to Transfer; or (b) prior to close of escrow on the Transfer, the Owner
shall repair all damage noted in the pest report including damage caused by infestation or
infection by wood-destroying pests;
(3) within thirty (30) days of the date of the Owner's Notice oflntent to
Transfer, the Owner shall allow the City to inspect the Property to determine its physical
condition;
( 4) if the Property is vacant, the Owner shall maintain utility connections until
the close of escrow on the Transfer; and
( 5) in the event of purchase of the Property by the City or City Designated
Purchaser, the Owner shall permit a final walk-through of the Property by the City or City
Designated Purchaser, in the final three (3) days prior to close of escrow on the Transfer.
10. CITY RESPONSE TO OWNER'S NOTICE OF INTENDED TRANSFER
City shall respond in writing (the "City Response Notice") to the Owner's Notice of Intent
to Transfer. The form of City Response Notice is attached as Exhibit D. The City Response
Notice shall inform the Owner of the City's election to proceed under one ( 1) of the following
two (2) alternatives:
A. City Exercise of City Purchase Option. The City Response Notice may notify the
Owner that the City or a City Designated Purchaser elects to exercise the City Option to purchase
the Property. The City Response Notice shall be sent within thirty (30) days of City receipt of
Owner's Notice oflntent to Transfer and shall include the City's calculation of the: (i) Maximum
Restricted Resale Price pursuant to Section 14 below to be paid by the City or a City Designated
Purchaser; and (ii) the transaction fee to be paid by the Owner pursuant to Section 12 below;
B. Initial Period: Owner Sale at a Restricted Sales Price to Eligible Purchaser.
Alternatively, the City Response Notice may notify the Owner that the City or a City Designated
Purchaser will not exercise the City Option to purchase the Property. In this case, if the Owner
has sent the Notice of Intent to Transfer within fifteen (15) years of the date ofrecordation of this
Agreement (the "Initial Period"), the City Response Notice shall inform the Owner that the
Owner may proceed to sell the Property to an Eligible Purchaser at a price not to exceed the
Maximum Restricted Resale Price, as set forth in Section 14 and pursuant to the procedure set
forth in Section 14 below. In this event, the City Response Notice shall include the following
information: (1) the maximum qualifying income for an Eligible Purchaser (which shall be the
same income category as the Owner at the time of the Owner's purchase); (2) the certifications
7
IO I 0/17/2032990.2
required of an Eligible Purchaser; (3) the Maximum Restricted Resale Price the Owner may
receive for the Property, calculated by the City pursuant to Section 14 below; ( 4) whether
Homebuyer Program assistance from the City may be available to an Eligible Purchaser; and (5)
Owner's repayment obligation as required by Section 13; and
C. Extended Period Owner Sale to Market Purchaser. If the City Response Notice
notifies the Owner that the City or a City Designated Purchaser will not exercise the City Option
to purchase the Property, and the Owner has sent the Notice oflntent to Transfer between the
fifteenth (15th) year of the Term and the end of the Term, (the "Extended Period"), the City
Response Notice shall inform Owner that Owner may proceed to sell the Property to a third party
at any income level (the "Market Purchaser") for an unrestricted price. The City Response
Notice shall also inform Owner of Owner's repayment obligation as required by Section 13.
11. OWNER ACKNOWLEDGEMENT OF CITY RESPONSE NOTICE
No later than seven (7) days following the date of the City Response Notice, the Owner
shall acknowledge in writing to the City, in the form shown in the attached Exhibit E, that he/she
has received the City Response Notice and still intends to Transfer the Property.
12. CITY PURCHASE OPTION
A. The Owner agrees that if the Owner decides to Transfer the Property, the City
shall have the option to purchase the Property for the Maximum Restricted Resale Price
calculated pursuant to Section 14 of this Agreement (the "City Option"). The Owner shall pay
the City a transaction fee up to six percent (6%) of the Maximum Restricted Resale Price if
the City or a City Designated Purchaser exercises the City Option and purchases the
Property. The City Option may be exercised by the City or by a City Designated Purchaser in
the City Response Notice. If the City Response Notice notifies the Owner that the City or a City
Designated Purchaser will exercise the City Option to purchase the Property, the City or the City
Designated Purchaser shall purchase the Property within ninety (90) days of the date of the City
Response Notice and title shall be delivered by the Owner to the City by grant deed free and
clear of any mortgage or other liens, unless approved in writing by the City.
B. The City may assign the City Option to another public agency, a nonprofit
corporation, or an Eligible Purchaser selected by the City (any of which shall be referred to
herein as a "City Designated Purchaser"). If the City assigns the City Option to a City
Designated Purchaser, the City Response Notice shall be executed by the City Designated
Purchaser and shall notify the Owner that a City Designated Purchaser is exercising the City
Option in lieu of the City.
C. In the event of exercise of the City Option and purchase of the Property by the
City or a City Designated Purchaser, the Owner shall permit a final walk-through of the Property
by the City or the City Designated Purchaser in the final three (3) days prior to close of escrow
on the Transfer.
8
IO IO/ I 7 /2032990.2
13. REPAYMENT OF CITY NOTE
Upon any Transfer of the Prope1ty, the outstanding principal and interest due under the
City Note shall be repaid pursuant to the City Note unless: (i) such principal and interest is
assumed by an Eligible Purchaser in accordance with Section 9 of the City Note; or (ii) the City
exercises the City Option to purchase the Property, in which event the outstanding amount of
principal and Contingent Interest due under the City Note shall be paid to the City in the form of
a credit against the purchase price to be paid by the City to the Owner. Repayment of the City
Note shall not affect Owner's obligation to comply with this Agreement, which shall remain in
full force and effect following any repayment of the City Note.
14. DETERMINATION OF MAXIMUM RESTRICTED RESALE PRICE
The maximum sales price that the Owner shall receive from the resale of the Property to
the City or City Designated Purchaser, or from other sale or Transfer by the Owner when the
Owner sends the Notice of Intent to Transfer during the Initial Period (the "Maximum Restricted
Resale Price") shall be the Full Sales Price or the Fair Market Value, whichever is less.
A. Full Sales Price.
(1) The Full Sales Price of the Property means: (a) the Affordable Sales
Price; plus (b) the principal and contingent interest then due on the City Note. The Affordable
Sales Price means the Original Affordable Purchase Price, as set forth in Recital D to this
Agreement, increased by the percentage of increase in the Median Income from the date of the
original purchase of the Property by the Owner to the date of receipt by the City of the Owner's
Notice of Intent to Transfer. "Median Income" shall refer to the median yearly income, adjusted
for a household size of four, in San Diego County, as published by the California Department of
Housing and Community Development ("HCD"), or, in the event such income determination is
no longer published by HCD, or has not been updated for a period of at least eighteen (18)
months, the City may use or develop such other reasonable method as it may choose in order to
determine the median yearly income in San Diego County. As of the date of Owner's purchase
of the Property, the Median Income for a household of four persons is Eighty Six Thousand
Three Hundred Dollars ($86,300).
(2) The Affordable Sales Price shall include a downward adjustment, where
applicable, in an amount necessary to repair any violations of applicable building, plumbing,
electric, fire or housing codes or any other provisions of the City of Carlsbad Building Code, as
well as any other repairs needed to put the Property into a "sellable condition". Items necessary
to put a Property into sellable condition shall be determined by the City, and may include
cleaning, painting and making needed structural, mechanical, electrical, plumbing and fixed
appliance repairs and other deferred maintenance repairs.
B. Fair Market Value. In certain circumstances it may be necessary to determine the
fair market value of the Property without taking account of the resale restrictions imposed by this
Agreement (the "Fair Market Value"). These circumstances include but are not limited to: (1)
where the parties wish to determine if the Full Sales Price exceeds the Fair Market Value in
order to determine the Maximum Restricted Resale Price pursuant to this section; (2) where the
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parties wish to determine if the sales price of the Property to a Market Purchaser is comparable
to the Fair Market Value; and (3) to calculate the amount due under the City Note at the end of
the term of the City Note or upon prepayment. If it is necessary to determine the Fair Market
Value of the Property, it shall be determined by a certified MAI or other qualified real estate
appraiser approved in advance by the City. If possible, the appraisal shall be based upon the
sales prices of comparable properties sold in the market area during the preceding three (3)
month period. The cost of the appraisal shall be paid by the Owner, unless the appraisal is
obtained from a new purchaser. Nothing in this section shall preclude the Owner and the City
from establishing the Fair Market Value of the Property by mutual agreement in lieu of an
appraisal pursuant to this section.
15. SALE BY OWNER DURING INITIAL PERIOD IF CITY DOES NOT EXERCISE
OPTION TO PURCHASE
In the event the City Response Notice notifies the Owner to proceed to sell the Property
to an Eligible Purchaser at a price not exceeding the Maximum Restricted Resale Price, the
Owner may proceed to sell the Property in compliance with the following requirements:
A. Marketing. The Owner shall use bona fide good faith efforts to sell the Property
to an Eligible Purchaser in compliance with this section, including listing the Property on the
Multiple Listing Service, keeping the Property in an orderly condition, making the Property
available to show to agents and prospective buyers, and providing buyers with Eligible Purchaser
requirements, including income qualifications and the City's form of disclosure statement
summarizing the terms of the buyer's occupancy and resale restriction agreement with option to
purchase. A proposed purchaser ("Proposed Purchaser") who the Owner believes will qualify as
an Eligible Purchaser shall be referred to the City for an eligibility determination. If the
Proposed Purchaser qualifies as an Eligible Purchaser the City will also determine if such
Eligible Purchaser is eligible for City housing-related financial assistance that may be available
at the time of resale.
B. Eligible Purchaser. A Proposed Purchaser shall qualify as an "Eligible Purchaser"
if he or she meets the following requirements, as determined by the City:
(I) Income Eligibility. The combined maximum income for all household
members of the Proposed Purchaser shall not exceed the income level designated by the City in
the City Response Notice.
(2) Intent to Owner Occupy. The Proposed Purchaser shall certify that he or
she will occupy the Property as to his or her principal place of residence throughout his or her
ownership. Co-signers are not required to occupy the Property.
(3) Agreement to Sign Resale Restriction Agreement and to Cooperate with
the City. The Proposed Purchaser shall agree to sign a resale restriction agreement restricting
future resale of the Property and shall agree to cooperate fully with the City in promptly
providing all information requested by the City to assist the City in monitoring the Proposed
Purchaser's compliance with the resale restriction agreement.
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C. Maximum Restricted Resale Price. The purchase price for the sale of the Property
by the Owner to the Eligible Purchaser shall not exceed the Maximum Restricted Resale Price
calculated by the City pursuant to Section 14 above, as set forth in the City Response Notice.
The closing costs paid by the Eligible Purchaser shall not exceed reasonable customary buyer's
closing costs in the County of San Diego. Pursuant to Section 13 of this Agreement and Section
9 of the City Note, the Eligible Purchaser may assume the Home buyer Loan and the effective
purchase price that the Eligible Purchaser will pay for the Property is anticipate to be the
Affordable Sales Price.
D. Disclosure and Submittals. The Owner and the Proposed Purchaser shall provide
the following information and documents to the City:
( 1) The name, address and telephone number in writing of the Proposed
Purchaser.
(2) A signed financial statement of the Proposed Purchaser in a form
acceptable to the City and any other supporting documentation requested by the City. The
financial information shall be used by the City to determine the income eligibility of the
Proposed Purchaser.
(3) The proposed sales contract and all other related documents which shall
set forth all the terms of the sale of the Property. Said documents shall include at least the
following terms: (a) the sales price; and (b) the price to be paid by the Proposed Purchaser for
the Owner's personal Property, if any, for the services of the Owner, if any, and any credits,
allowances or other consideration, if any.
( 4) A written certification, from the Owner and the Proposed Purchaser in a
form acceptable to the City that the sale shall be closed in accordance with the terms of the sales
contract and other documents submitted to and approved by the City. The certification shall also
provide that the Proposed Purchaser or any other party has not paid and will not pay to the
Owner, and the Owner has not received and will not receive from the Proposed Purchaser or any
other party, money or other consideration, including personal property, in addition to what is set
forth in the sales contract and documents submitted to the City. The written certification shall
also include a provision that in the event a Transfer is made in violation of the terms of this
Agreement or false or misleading statements are made in any documents or certification
submitted to the City, the City shall have the right to foreclose on the Property or file an action at
law or in equity as may be appropriate. In any event, any costs, liabilities or obligations incurred
by the Owner and the Proposed Purchaser for the return of any moneys paid or received in
violation of this Agreement or for any of the Owner's and/or the Proposed Purchaser's costs and
legal expenses, shall be borne by the Owner and/or the Proposed Purchaser and they shall hold
the City harmless and reimburse the City's expenses, legal fees and costs for any action they
reasonably take in good faith in enforcing the terms of this Agreement.
(5) An executed buyer's resale restriction agreement and deed of trust to the
City from the Proposed Purchaser in forms provided by the City. If the Proposed Purchaser is
receiving assistance from the Homebuyer Program, a promissory note to the City shall also be
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required. The recordation of the new deed of trust and buyer's resale restriction agreement shall
be a condition of the City's approval of the proposed sale.
(6) The name of the title company escrow holder for the sale of the Property,
the escrow number, and name, address, and phone number of the escrow officer.
(7) Upon the close of the proposed sale, certified copies of the recorded City
deed of trust and buyer's resale restriction agreement, a copy of the final sales contract,
settlement statement, escrow instructions, and any other documents which the City may
reasonably request.
16. PAYMENT TO CITY OF EXCESS SALES PROCEEDS
If the Owner makes a Transfer in violation of this Agreement at any time during the
Initial Period or Extended Period, the Owner shall pay the Excess Sales Proceeds to the City. If
the Owner Transfers the Property in violation of this Agreement, the Appreciation Amount ( as
such term is defined in the City Note) shall be calculated using the Maximum Restricted Resale
Price of the Property, rather than the actual sales price. For purposes of this Agreement, "Excess
Sales Proceeds" shall mean ninety-four percent (94%) of the amount by which the gross sales
proceeds received by the Owner from the new purchaser exceed the Maximum Restricted Resale
Price for the Property. This amount shall be a debt of the Owner to the City, further evidenced
by the City Note, and secured by the City Deed of Trust. The Owner acknowledges that the City
shall have no obligation to cause the release and termination of this Agreement, or the
reconveyance of the City Deed of Trust, until the Excess Sales Proceeds are paid to the City.
The City shall utilize the Excess Sales Proceeds for City affordable housing programs. The
Owner and the City acknowledge that the formula for calculation of the amount of Excess Sales
Proceeds due from the Owner to the City is intended to cause the Owner to receive the same net
sales proceeds (following payment by Owner of a standard broker's commission) from sale of the
Property at an unrestricted price to a market purchaser (in violation of this Agreement) as the
Owner would receive from sale of the Property to the City, City Designated Purchaser or to an
Eligible Purchaser at the Maximum Restricted Resale Price.
17. SALE OF PROPERTY BY OWNER DURING EXTENDED PERIOD
In the event the City Response Notice notifies the Owner to proceed to sell the Property
to a Market Purchaser at a price greater than or equal to the Fair Market Value of the Property,
the Owner may proceed to sell the Property in compliance with the following requirements:
Upon any sale of the Property, the Owner shall submit to the City at least fifteen (15)
days prior to the close of escrow, a copy of the appraisal, and a copy of the sales contract and a
written declaration, under penalty of perjury, from the Owner and the proposed purchaser in a
form acceptable to the City stating the gross sales price of the Property. The certification shall
also provide that the proposed purchaser or any other party has not paid and will not pay to the
Owner, and the Owner has not received and will not receive from the proposed purchaser or any
other party, money or other consideration, including personal property, in addition to what is set
forth in the sales contract. At close of escrow, Owner shall: (i) submit to the City a copy of the
HUD-I Settlement Statement showing the purchase price paid for the Property; and (ii) repay all
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outstanding amounts owed by to Owner to the City pursuant to this Agreement, the City Deed of
Trust, and the City Note. Upon such full repayment to the City, the City shall cause this
Agreement to be terminated and released from the Property and shall cause the City Deed of
Trust to be reconveyed from the Property.
18. DEFAULTS
A. A Default by the Owner is any failure to comply with the requirements of this
Agreement, the City Note or the City Deed of Trust, whether by commission or omission which
includes, but is not limited to the following:
( 1) The City determines that the Owner has made a misrepresentation to
obtain the benefits of purchase of the Property or in connection with its obligations under this
Agreement.
(2) The Owner fails to owner occupy the Property, as required pursuant to
Section 3 above, and such failure continues following written notice by the City and sixty (60)
days opportunity to cure following the date of such notice.
(3) The Owner rents all or a portion of the Property in violation of Section 4
above, and such failure continues following written notice by the City and sixty (60) days
opportunity to cure.
( 4) The Owner fails to provide information or documents to the City that the
City deems necessary to determine Owner's compliance with the requirements of this
Agreement.
(5) The Owner makes a Transfer in violation of this Agreement.
(6) A notice of default is issued under First Lender Loan.
(7) A lien is recorded in the Official Records against the Property other than
the First Mortgage.
(8) Owner records a deed of trust against the Property in the Official Records,
or otherwise places a mortgage on the Property in violation of Section 28 below.
(9) Owner declares bankruptcy or makes an assignment of assets for the
benefit of creditors.
B. Upon a declaration of Default by the City under this Agreement, the City may
exercise any remedies at law or in equity, including without limitation, any or all of the
following:
(1) Declare all Excess Sales Proceeds immediately due and payable without
further demand, accelerate payments due under the City Note and invoke the power of sale under
the City Deed of Trust;
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(2) Apply to a court of competent jurisdiction for such relief at law or in
equity as may be appropriate, including, but not limited to specific performance.
(3) Declare a Default under the City Note and the City Deed of Trust and
pursue all City remedies under the City Note and the City Deed of Trust; and
( 4) Exercise the City Option upon Default as described in Section 21, below.
Owner acknowledges that any breach in Owner's performance of Owner's obligations under this
Agreement shall cause irreparable harm to the City. Therefore, Owner agrees that the City is
entitled to equitable relief in the form of specific performance upon its exercise of the City
Option set forth in Section 21, below, and that an award of damages may not be adequate to
compensate the City for Owner's failure to perform according to the terms of this Agreement.
The City, in its sole and absolute discretion, may elect the appropriate remedy for Owner's
default under this Agreement.
19. NOTICE AND CURE
Upon a violation of any of the provisions of this Agreement, the City Note or the City
Deed of Trust, the City shall give written notice to the Owner specifying the nature of the
violation and demanding a cure. If the violation is not corrected to the satisfaction of the City
within a reasonable period of time, not longer than thirty (30) days from the date the notice is
mailed, or within such further time as the City determines is necessary to correct the violation, or
if the Owner is in default under the First Mortgage, the City may declare a Default under this
Agreement. If the violation is failure to occupy the Property, as set forth in Section 3, or any
rental of the Property or any other act prohibited by Section 4, then Owner shall be given sixty
(60) days from the date the notice is mailed to correct that violation, and, to the extent applicable,
remit all Unauthorized Rental Proceeds to the City before the City may declare a Default.
The City shall notify First Lender at the address provided by the First Lender to the City
in the manner set forth in Section 33 of this Agreement, if the City has declared a Default under
this Agreement or under the City Note or City Deed of Trust.
20. NOTICE TO CITY OF DEFAULT
A request for notice of default and any notice of sale under any deed of trust or mortgage
with power of sale encumbering the Property shall be recorded by the City in the Official
Records for the benefit of the City. The City may declare a default under this Agreement upon
receipt of any notice given to the City pursuant to Civil Code Section 2924b, and may exercise
its rights as provided in Sections 18 and 21.
In the event of default and foreclosure under the First Lender Loan or any other mortgage
loan on the Property, the City shall have the same right as the Owner to cure defaults and redeem
the Property prior to the foreclosure sale. Nothing herein shall be construed as creating any
obligation of the City to cure any such default, nor shall this right to cure and redeem operate to
extend any time limitations in the default provisions of the underlying deed of trust or mortgage.
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If the City failed to file the request for notice of default, the City's right to purchase the
Property shall commence from the date a notice of default is given by the City to the Owner.
21. PURCHASE OPTION UPON DEFAULT
A. Purchase Option. Notwithstanding, and in addition to, the remedies provided the
City in Section 18, and the City Purchase Option provided in Section 12, the Owner hereby
grants to the City or the City Designated Purchaser the option to purchase the Property effective
upon the declaration of a Default by the City pursuant to Section 18 and Section 19 above, and
subject to notice and cure rights set forth in Section 19.
B. Exercise of Option. The option to purchase may be exercised upon a Default
under this Agreement or upon default under any promissory note, deed of trust or any other lien,
including a judgment lien, recorded against the Property. The City shall have thirty (30) days
after a Default is declared to notify the Owner and the First Lender of its decision to exercise its
option to purchase. Not later than ninety (90) days after the notice is given by the City to the
Owner of the City's intent to exercise its option, the City shall purchase the Property for the
Maximum Restricted Resale Price set forth in Section 14. The City may assign its rights to
purchase the Property under this section to a City Designated Purchaser.
22. NONLIABILITY OF THE CITY
A. No Obligation to Exercise Option. The City shall have no obligation to exercise
any option granted it under this Agreement. In no event shall the City become in any way liable
or obligated to the Owner or any successor-in-interest to the Owner by reason of its option to
purchase under Sections 12 and 21 nor shall the City be in any way obligated or liable to the
Owner or any successor-in-interest to the Owner for any failure to exercise its option to
purchase.
B. Nonliability for Negligence, Loss, or Damage. Owner acknowledges,
understands and agrees that the relationship between Owner and the City is solely that of an
owner and an administrator of a City inclusionary housing program, and that the City does not
undertake or assume any responsibility for or duty to Owner to select, review, inspect, supervise,
pass judgment on, or inform Owner of the quality, adequacy or suitability of the Property or any
other matter. The City owes no duty of care to protect Owner against negligent, faulty,
inadequate or defective building or construction or any condition of the Property and Owner
agrees that neither Owner, or Owner's heirs, successors or assigns shall ever claim, have or assert
any right or action against the City for any loss, damage or other matter arising out of or
resulting from any condition of the Property and will hold the City harmless from any liability,
loss or damage as set forth in Section 22(c). Any review by the City of any documents submitted
by the Owner to the City pursuant to this Agreement, including, but not limited to any purchase
and sale agreement for the Property, is solely to confirm compliance with the requirements of
this Agreement and shall not be deemed to be a representation of any kind of the validity or legal
enforceability of such document(s).
C. Indemnity. Owner agrees to defend (with counsel reasonably selected by the
City), indemnify, and hold the City harmless from all losses, damages, liabilities, claims, actions,
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judgments, and costs, including expenses, and reasonable attorneys' fees that the City may incur,
as a direct or indirect consequence of: ( 1) Owner's default, performance, or failure to perform
any obligations as and when required by this Agreement, the City Note, or the City Deed of
Trust; or (2) the failure at any time of any of Owner's representations to the City to be true and
correct. This provision shall survive the termination or expiration of this Agreement, and the
reconveyance of the City Deed of Trust.
23. RESTRICTIONS ON FORECLOSURE PROCEEDS
If a creditor acquires title to the Property through a deed in lieu of foreclosure, a trustee's
deed upon sale, or otherwise, the Owner shall not be entitled to the proceeds of sale to the extent
that such proceeds otherwise payable to the Owner when added to the proceeds paid or credited
to the creditor exceed the Maximum Restricted Resale Price. The Owner shall instruct the holder
of such excess proceeds (in addition to other amounts due to the City pursuant to the City Note
and this Agreement) to pay such proceeds to the City in consideration of the benefits received by
the Owner through purchase of the Property under this Agreement.
24. RESTRICTION ON INSURANCE PROCEEDS
If the Property is damaged or destroyed and the Owner elects not to rebuild or repair the
Property, the Owner shall pay the City the portion of any insurance proceeds received by the
Owner for such destruction or damage which is in excess of the Maximum Restricted Resale
Price calculated pursuant to Section 14 above.
25. TERM OF AGREEMENT
All the provisions of this Agreement, including the benefits and burdens, run with the
land and the Property and this Agreement shall bind, and the benefit hereof shall inure to, the
Owner, his or her heirs, legal representatives, executors, successors in interest and assigns, and to
the City and its successors until the earlier of: (i) thirty (30) years from the date of recordation of
this Agreement in the Official Records; or (ii) the date of Transfer of the Property to the City or
another purchaser in compliance with this Agreement (including execution by the purchaser of a
new resale restriction agreement for the benefit of the City). The "Term" consists of the Initial
Period and the Extended Period.
26. SUPERIORITY OF AGREEMENT
The Owner covenants that he or she has not, and will not, execute any other agreement
with provisions contradictory to or in opposition to the provisions of this Agreement hereof, and
that, in any event, this Agreement is controlling as to the rights and obligations between and
among the Owner, the City and their respective successors.
27. SUBORDINATION
Notwithstanding any other provision hereof, the provisions of this Agreement shall be
subordinate to the lien of the First Lender Loan and shall not impair the rights of the First
Lender, or the First Lender's successor or assign, to exercise its remedies under the First Lender
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Deed of Trust in the event of default under the First Lender Deed of Trust by the Owner. Such
remedies under the First Lender Deed of Trust include the right of foreclosure or acceptance of a
deed or assignment in lieu of foreclosure. After such foreclosure or acceptance of a deed or
assignment in lieu of foreclosure, this Agreement shall be forever terminated and shall have no
further effect as to the Property or any transferee thereafter; provided, however, if the holder of
such First Lender Deed of Trust acquired title to the Property pursuant to a deed or assignment in
lieu of foreclosure, this Agreement shall automatically terminate upon such acquisition of title,
provided that: (i) the City has been given written notice of default under such First Lender Deed
of Trust; and (ii) the City shall not have cured or commenced to cure the default within such
thirty (30) day period and given its firm commitment to complete the cure in the form and
substance acceptable to the First Lender. Owner agrees to record any necessary documents to
effect such termination, if applicable.
28. REFINANCE OF FIRST LENDER LOAN
The outstanding principal on the City Note shall not be due upon prepayment and
refinancing of the First Lender Loan, and this Agreement and the City Deed of Trust shall be
subordinated to the refinanced First Lender Loan, provided that: (i) such refinancing is approved
by the City; (ii) the amount refinanced does not exceed the outstanding principal balance of the
First Mortgage at the time of refinance plus reasonable costs of refinance; and (iii) the refinance
does not result in higher monthly payments on the First Lender Loan than were due prior to the
refinance. Mortgage loans or equity lines of credit junior in lien priority to the City Deed of
Trust are not permitted. Owner acknowledges that such prohibition on junior liens was
granted in consideration for the receipt of the Home buyer Loan on favorable terms that have
assisted the Owner acquire the Property for Original Affordable Purchase Price, and that without
such financial assistance from the City, the Owner would not be have able to pay the Original
Affordable Purchase Price, or otherwise acquire the Property. The City and the Owner agree that
the requirements of this section are necessary to ensure the continued affordability of the
Property to Owner and to minimize the risk ofloss of the Property by Owner through default and
foreclosure of mortgage loans. Owner further acknowledges that violation of the provisions of
this section shall constitute a Default under this Agreement. A form for use by the Owner in
requesting City subordination to a refinanced First Lender Loan is attached hereto as Exhibit F.
29. NONDISCRIMINATION
The Owner covenants by and for itself and its successors and assigns that there shall be
no discrimination against or segregation of a person or of a group of persons on account of race,
color, religion, creed, age, disability, sex, sexual orientation, marital status, ancestry or national
origin in the sale, transfer, use, occupancy. tenure or enjoyment of the Property, nor shall the
Owner or any person claiming under or through the Owner establish or permit any such practice
or practices of discrimination or segregation with reference to the use, occupancy, or transfer of
the Property. The foregoing covenant shall run with the land.
30. RIGHTS OF BENEFICIARIES UNDER DEEDS OF TRUSTS
This Agreement shall not diminish or affect the rights of the City under the City Note and
the City Deed of Trust.
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Notwithstanding any other provision in this Agreement to the contrary, this Agreement
shall not diminish or affect the rights of the California Housing Finance Agency ("Cal HF A"), the
United States Department of Housing and Urban Development ("HUD"), the Federal National
Mortgage Association ("FNMA"), or the Veterans Administration ("VA") under the First Lender
Deed of Trust or any subsequent First Lender deeds of trust hereafter recorded against the
Property in compliance with Section 28 above.
31. HUD FORBEARANCE RELIEF
Notwithstanding other provisions of this Agreement, the Option shall not be exercised by
the City when a deed of trust insured by HUD is secured by the Property, and: (i) the Owner is
undergoing consideration by HUD for assignment forbearance relief; or (ii) the Owner is
undergoing consideration for relief under HUD's Temporary Mortgage Assistance Payment
(TMAP) program.
32. INV AUD PROVISIONS
If any one or more of the provisions contained in this Agreement shall for any reason be
held to be invalid, illegal or unenforceable in any respect, then such provision or provisions shall
be deemed severable from the remaining provisions contained in this Agreement, and this
Agreement shall be construed as if such invalid, illegal or unenforceable provision had never
been contained herein.
33. NOTICES
All notices required herein shall be sent by certified mail, return receipt requested or
express delivery service with a delivery receipt or personally delivered with delivery receipt
obtained and shall be deemed to be effective as of the date shown on the delivery receipt as the
date of delivery, or the date delivery was refused as indicated on the return receipt, or the date
Notice was returned as undeliverable as follows:
To Owner(s):
(Address of the Property]
To the City:
City of Carlsbad
Housing and Neighborhood Services
1200 Carlsbad Village Drive
Carlsbad, CA 92008
Attn: Homebuyer Program
The parties may subsequently change addresses by providing written notice of the change in
address to the other parties in accordance with this section.
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34. INTERPRETATION OF AGREEMENT
The terms of this Agreement shall be interpreted so as to avoid speculation on the
Property and to insure to the extent possible that the mortgage payments remain affordable to
low and moderate income households. Owner acknowledges that, pursuant to this Agreement, in
addition to other rights of the City set forth herein, the Owner has granted the City multiple
options to purchase the Property ( as more particularly set forth in Section 12 and Section 21 ),
and that each option to purchase is given in consideration of the economic benefits received by
the Owner resulting from ownership of the Property made possible by the financial assistance
provided by the City to the Owner for the purchase of the Property. This Agreement shall not be
construed as if it had been prepared by one of the parties, but rather as if both parties had
prepared it. The parties have read and reviewed this Agreement and agree that any rule of
construction to the effect that ambiguities are to be resolved against the drafting party (including
but not limited to Civil Code Section 1654 as may be amended from time to time) shall not apply
to the interpretation of this Agreement. In the event of any conflict between the terms of this
Agreement, and the terms of the disclosure statement executed by the City and the Owner in
conjunction with this Agreement, the terms of this Agreement shall prevail.
35. CONTROLLING LAW; VENUE
The terms of this Agreement shall be interpreted under the laws of the State of California.
In the event any legal action is commenced to interpret or to enforce the terms of this Agreement
or to collect damages as a result of any breach thereof, the venue for such action shall be the
Superior Court of the County of San Diego.
36. ATTORNEYS' FEES
In the event any action or proceeding in court or other dispute resolution mechanism
permitted under this Agreement is commenced by either party to interpret or enforce the terms of
this Agreement, the prevailing party therein shall be entitled to recover from the non-prevailing
party all of the prevailing party's reasonable costs and expenses in connection therewith,
including on any appeal and including expert witness fees, document copying expenses, exhibit
preparation costs, carrier expenses and postage and communication expenses, and reasonable
attorneys' fees and costs for the services rendered to the prevailing party in such action or
proceeding (which shall include the reasonable costs for services of the City's in-house counsel).
37. TIME IS OF THE ESSENCE
In all matters under this Agreement, the parties agree that time is of the essence.
38. TITLE OF PARTS AND SECTIONS
Any titles of the articles, sections or subsections of this Agreement are inserted for
convenience of reference only and shall be disregarded in construing or interpreting any part of
its provision.
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39. EXHIBITS
Any exhibits referred to in this Agreement are incorporated in this Agreement by such
reference.
40. INTREPRET A TION
Where the context requires herein, the singular shall be construed as the plural, and
neuter pronouns shall be construed as masculine and feminine pronouns, and vice versa.
References in this Agreement to days shall be to calendar days. If the last day of any period to
give or reply to a notice, meet a deadline or undertake any other action occurs on a day that is not
a day of the week on which the City of Carlsbad is open to the public for carrying on
substantially all business functions (a "Business Day"), then the last day for giving or replying to
such notice, meeting such deadline or undertaking any such other action shall be the next
succeeding Business Day. In no event shall a Saturday or Sunday be considered a Business Day.
The use in this Agreement of the words "including", "such as" or words of similar import when
used with reference to any general term, statement or matter shall not be construed to limit such
statement, term or matter to the specific statements, terms or matters, unless language of
limitation, such as "and limited to" or words of similar import are used with reference thereto.
41. NON-WAIVER OF BREACH
Neither the failure of the City to insist upon strict performance of any of the covenants
and agreements of this Agreement, nor the failure by the City to exercise any rights or remedies
granted to the City under the terms of this Agreement shall be deemed a waiver or
relinquishment of: (i) any covenant contained in this Agreement, or of any of the rights or
remedies of the City under this Agreement; or (ii) the right in the future of the City to insist upon
and to enforce by any appropriate legal remedy a strict compliance with all of the covenants and
conditions of this Agreement.
42. OWNER'S ACKNOWLEDGEMENT OF RESALE RESTRICTION
Owner hereby acknowledges and agrees that:
A. Owner hereby subjects the Property to the restrictions set forth above, and hereby
limits the price for which Owner may sell the Property and the persons to whom Owner may sell
the Property as set forth above. The resale price limitation and other provisions contained in this
Agreement restrict the full benefits of owning the Property. Owner may not enjoy the same
economic or other benefits from owning the Property that Owner would enjoy if this Agreement
did not exist.
B. Owner acknowledges that the City provided the Homebuyer Loan to the Owner
because of the Owner's income eligibility, and the Owner further acknowledges that this
Agreement requires that the Property be made available to Eligible Purchasers at an affordable
pnce.
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C. Owner understands all of the provisions of this Agreement. In recognition of the
acknowledgments and agreements stated in this Section, Owner accepts and agrees to the
provisions of this Agreement with the understanding that this Agreement will remain in full force
and effect as to the Property following any Transfer of the Property throughout the Term.
0. OWNER UNO ERST ANDS THAT THE DETERMINATION OF THE
MAXIMUM RESTRICTED RESALE PRICE OF THE PROPERTY TO AN ELIGIBLE
PURCHASER CAN BE MADE ONLY AT THE TIME OF THE PROPOSED TRANSFER,
TAKING INTO CONSIDERATION INCREASES IN MEDIAN INCOME AND OTHER
FACTORS THAT CANNOT BE ACCURATELY PREDICTED, AND THAT THE SALES
PRICE PERMITTED HEREUNDER MAY NOT INCREASE OR DECREASE IN THE SAME
MANNER AS OTHER SIMILAR REAL PROPERTY WHICH IS NOT ENCUMBERED BY
THIS AGREEMENT OR SUBJECT TO THE CITY'S HOMEBUYER PROGRAM. OWNER
FURTHER ACKNOWLEDGES THAT AT ALL TIMES IN SETTING THE SALES PRICE OF
THE HOME, THE PRIMARY OBJECTIVE OF THE CITY AND THIS AGREEMENT IS TO
IMPLEMENT THE CITY'S HOMEBUYER PROGRAM IN ORDER TO PROVIDE HOUSING
TO ELIGIBLE PURCHASERS AT AFFORDABLE HOUSING COST. THE MAXIMUM
RESTRICTED RESALE PRICE COULD BE LESS THAN OTHER SIMILAR PROPERTIES
THAT HA VE NO RESTRICTIONS. NOTWITHSTANDING SUCH LIMITATIONS AND
RESTRICTIONS IMPOSED ON THE PROPERTY PURSUANT TO THIS AGREEMENT,
OWNER DESIRES TO OBTAIN THE HOMEBUYER LOAN AND HAVE THE PROPERTY
SUBJECT TO THIS AGREEMENT.
f/K
(Initials of Owner)
43. COUNTERPARTS
This Agreement may be executed in multiple originals, each of which is deemed to be an
original, and may be signed in counterparts, which shall constitute one and the same agreement.
21
IO I 0/17/2032990.2
IN WITNESS WHEREOF, the parties have executed this Agreement on or as of the date
first written above.
CITY:
CITY OF CARLSBAD, a municipal corporation
OWNER:
By #L!Jiluj
Name: _1-r,-_f{_g~_r/n fJ...._._111_/{i ____ '/za_~ __ f_
(Proper notarial acknowledgment of execution must be attached)
22
IO I 0/17/2032990.2
ACKNOWLEDGMENT
A notary public or other officer completing this
certificate verifies only the identity of the individual
who signed the document to which this certificate is
attached, and not the truthfulness, accuracy, or
validity of that document.
State of California
County of San Diego
before me Morgen Fry, Notary Public '-------------------(insert name and title of the officer)
personally appeared ::P~7-Gomf..,,--z._
who proved to me on the basis of satisfactory evidence to be the person('s) whose namets) is/ere
subscribed to the within instrument and acknowledged to me that 'he/sheltRe.y executed the same in
'h.s/herttAeir authorized capacity~s), and that by 'hio/her/tl'teir signature~ on the instrument the
person~}. or the entity upon behalf of which the person('Sl acted, executed the instrument.
I certify under PENAL TY OF PERJURY under the laws of the State of California that the foregoing
paragraph is true and correct.
WITNESS my hand and official seal.
Signature \_,/~-0"1)(seal)
A notary public or other officer completing this certificate verifies only the
identity of the individual who signed the document to which this certificate
is attached, and not the truthfulness, accuracy, or validity of that document.
State of California
County of SAN DIEGO
CALIFORNIA ALL-PURPOSE
CERTIFICATE OF
ACKNOWLEDGMENT
before me, ___ E_._N_._MA_L_O_N_E_, _N_O_T_A_R_Y_P_U_B_L_I_C _____ _
(here insert name and title oft he officer)
personally appeared ____ N __ ~_,z_,_y~Q_M __ l<C~+f_A_G\---'::S::~----------
who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to
the within instrument and acknowledged to me that he/she/they executed the same in his/her/their
authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity
upon behalf of which the person(s) acted, executed the instrument.
I certify under PENALTY OF PERJURY under the laws of the
State of California that the foregoing paragraph is true and correct. 1············~ ,, E. N. MALONE
: ·. ' -Notary Public • California i . ·'* a San Diego County f ~ .. Commission# 2284290 ~
WITNESS my hand and official seal. My Comm. Expires Apr 29, 2023
Signature ----------------------(Seal)
OPTIONAL INFORMATION
Although the information in this section is not required by law, it could prevent fraudulent removal and reattachment of this
acknowledgment to an unauthorized document and may prove useful to persons relying on the attached document.
Description of Attached Document
The preceding Certificate of Acknqwledqrn,ent is attached to a document
-~-5--\Cl.J\..~~ ~ ~~~ ... ,'-~'-'IL.
titled/for :he purpose of ~Y-~~n-:\<::._~~~°"1.~ __
(L~~~~~~~~~ts:~~~~~:~~~~'1-~
containing pages, and dated _ ,.,J . --C-f~ ...._ -~ ~ tt:~"\Cl"J'-
The signer(s) capacity or authority is/are as:
' ] lndividual(s)
1 Attorney-in-Fact
: Corporate Officer(s)
: i Guardian/Conservator
· _; Partner -Limited/General
1 __ I Trustee(s)
• Other
representing: --N,1111~'1'-) of !'r'rsnn'c,) nr fnt1tyi'1r",) c;1nnc1 ,,, RrprP~NJ(lfl(J
Proved to me on the basis of satisfactory evidence:
I __ : ' form(s) of identincat 1011 r, ·: crpdible witness(r's)
Notarial Pvent is detailed in notary journal on:
Page # Entry #
Notary contact:
I
j ()ther __ ... _
~dd1t1orial S'anrr(s)
Escrow No.: SK60117-006-AM4
EXHIBIT "A"
Legal Description
A CONDOMINIUM COMPRISED OF:
PARCEL 1:
AN UNDIVIDED FEE SIMPLE INTEREST AS A TENANT IN COMMON IN AND TO THE COMMON AREA IN
THE MODULE IN WHICH THE RESIDENTIAL UNIT DESCRIBED IN PARCEL 2 BELOW IS LOCATED EQUAL
TO THE RECIPROCAL OF THE NUMBER OF RESIDENTIAL UNITS LOCATED WITHIN SUCH MODULE, AS
SHOWN ON THE AMENDED AND RESTATED CONDOMINIUM PLAN FOR KENSINGTON AT THE SQUARE,
RECORDED IN THE OFFICE OF THE COUNTY RECORDER OF SAN DIEGO COUNTY, CALIFORNIA, ON
JUNE 13, 2019, AS DOCUMENT NO. 2019-0230474, AND ANY AMENDMENTS OR SUPPLEMENTS THERETO
(COLLECTIVELY "CONDOMINIUM PLAN"), LOCATED IN A PORTION OF LOT 1 OF CARLSBAD TRACT NO.
14-09 UPTOWN BRESSI RANCH, IN THE CITY OF CARLSBAD, COUNTY OF SAN DIEGO, STATE OF
CALIFORNIA, ACCORDING TO MAP THEREOF NO. 16253, FILED IN THE OFFICE OF THE COUNTY
RECORDER OF SAN DIEGO COUNTY, MARCH 9, 2018 ("MAP").
PARCEL 2:
RESIDENTIAL UNIT NO. 117, AS SHOWN AND DESCRIBED ON THE CONDOMINIUM PLAN;
PARCEL 3:
AN EXCLUSIVE EASEMENT TO USE EACH PORTION OF THE ASSOCIATION PROPERTY, IF ANY,
DESIGNATED IN THE CONDOMINIUM PLAN AS BEING AN EXCLUSIVE USE EASEMENT AREA
APPURTENANT TO THE RESIDENTIAL UNIT DESCRIBED IN PARCEL 2 ABOVE FOR THE PURPOSES
DESCRIBED IN THE DECLARATION OF COVENANTS, CONDITIONS AND RESTRICTIONS AND
ESTABLISHMENT OF EASEMENTS OF KENSINGTON AT THE SQUARE RECORDED IN THE OFFICIAL
RECORDS OF THE COUNTY RECORDER OF SAN DIEGO COUNTY, CALIFORNIA ON JUNE 13, 2019 AS
DOCUMENT NO. 2019-0230475, AND ANY AMENDMENTS AND SUPPLEMENTS THERETO (COLLECTIVELY,
THE "DECLARATION").
PARCEL 4:
A NON-EXCLUSIVE TEMPORARY EASEMENT FOR PEDESTRIAN AND VEHICULAR ACCESS, INGRESS
AND EGRESS BY GRANTEE OVER, UPON AND ACROSS THE PRIVATE STREETS MORE PARTICULARLY
DESCRIBED AS STREET MODULE A, STREET MODULE B, STREET MODULE C, AND STREET MODULE D,
AS SHOWN ON THE CONDOMINIUM PLAN, AND DESCRIBED IN THAT CERTAIN ACCESS EASEMENT
GRANT DEED RECORDED IN THE OFFICIAL RECORDS OF THE COUNTY RECORDER OF SAN DIEGO
COUNTY ON SEPTEMBER 4, 2019 AS DOCUMENT NO. 2019-0380430, WHICH EASEMENT IS
APPURTENANT TO THE RESIDENTIAL UNIT DESCRIBED IN PARCEL 2 ABOVE.
PARCEL 5:
A NON-EXCLUSIVE EASEMENT, IN COMMON WITH OTHER OWNERS, FOR ACCESS, INGRESS AND
EGRESS, IN, TO, OVER, UNDER AND ACROSS CERTAIN PORTIONS OF THE ASSOCIATION PROPERTY
DESCRIBED IN THE DECLARATION, SUBJECT TO THE LIMITATIONS SET FORTH THEREIN, WHICH
EASEMENT IS APPURTENANT TO THE RESIDENTIAL UNIT DESCRIBED ABOVE.
EXHIBIT B
FORM OF OWNER OCCUPANCY CERTIFICATION
To: City of Carlsbad ("City")
From: __________ [name of owner(s)] ("Owner(s)")
Address of Property: ____________ ("Property")
Date:
By signature below, I _______________ [insert name or names of
Owner(s)] hereby certify to the City under penalty of perjury that I/we occupy the home located
at _________________ [insert address] ("Property") as my/our
principal place of residence and that I/we have occupied the Property for _____ (_)
[insert number] months of the calendar year ______ [insert previous calendar year].
Attached to this letter is a copy of ____ [insert utility bill or driver's license] showing
my place of residence?
All of the occupants of the Property are listed as follows:
This Owner Occupancy Certification is signed on ________ , 20_, under penalty of
perJury.
By:
Owner signature
Date:
By:
Owner signature
Date:
Due Date: _____ of each calendar year.
Attach copy of utility bill or driver's license showing address of Property.
B-1
IO I 0/17/2032990.2
EXHIBIT C
FORM OF OWNER'S NOTICE OF INTENT TO TRANSFER
To: City of Carlsbad ("City")
From: __________ [name of owner(s)] ("Owner(s)")
Address of Property: ____________ ("Property")
Date:
Please be notified pursuant to Section 8 of the Resale Restriction Agreement and Option to
Purchase between Owner and City dated ______ that the Owner intends to transfer the
Property listed above.
A. The following information is provided to the City pursuant to Section 8 of the Resale
Agreement:
1. Address of Property: ____________________ _
2. Date Owner purchased Property: ________________ _
3. Original Affordable Purchase Price: _______________ _
4. Original amount of Home buyer Loan: _______________ _
5. Full Purchase Price: ----------------------
6. Date Owner intends to vacate Property: ______________ _
7.. Date Property will be placed on market:
8. Name and phone number of person for City to contact to schedule inspection:
and -----------------(name) (phone number)
B. As required by Section 8 of the Resale Restriction Agreement, the following the HUD-1
Settlement Statement from Owner's purchase of the property is attached.
C. I have not yet listed the Property for sale with a multiple listing service, or contacted a
real estate broker or financial institution. I agree to prepare the Property for sale by:
1. obtaining a pest control report within thirty (30) days of the date of this notice:
C-1
IO I 0/17/2032990.2
2. repairing all damage noted in the pest report within the sooner of: (i) sixty ( 60)
days from the date of this notice; or (ii) two (2) weeks prior to close of escrow or the transfer of
the Property;
3. allowing the City or its designee to inspect the Property within thirty (30) days of
this notice;
4. maintaining utility connections until the Property is transferred;
5. permitting a walk through by the City prior to close of escrow or the transfer.
This Owner's Notice of Intent to Transfer is certified by Owner to be true and correct and
is signed on the date(s) below under penalty of perjury.
By:
Owner signature
Date:
By:
Owner signature
Date:
C-1
1010/17/2032990.2
EXHIBIT D
FORM OF CITY RESPONSE NOTICE
To: __________ ("Owner(s)")
From: City of Carlsbad ("City")
Address of Property: ____________ ("Property")
Date:
Thank you for delivering the Notice of Intent to Transfer. This letter is the City Response Notice
described in Section 10 of the Resale Restriction Agreement that was recorded against title to
your home. The City:
I. __ City will check this Sentence #1 and complete other information listed in #1 if the
City intends to exercise its option to purchase the Property or assign its option to the Property to
a Designated Purchaser at any point during the entire Term of the Resale Restriction Agreement.
A. Affordable Sales Price: $ --------
B. Amount owed on Homebuyer Loan: $ ---------
C. Full Sales Price (add numbers in l(A) and l(B)): $ _____ _
D. Fair Market Value (as estimated by the City): $ ______ _
The Price for which you may sell your Property ( or the Maximum Restricted Resale
Price)
(The greater of l(C) and 1(0)): $ _______ _
In connection with the City's Option, you will owe a$ ___ to City.
If the City has assigned its option, the name of Designated Purchaser is _____ _
The City or its Designated Purchaser will follow up with you to complete the sale of your
Property. If a Designated Purchaser purchases your Property, that designated purchaser may
assume the amount you owe on the Homebuyer Loan. If the City purchases your Property the
0-1
1010/17/2032990.2
amount you owe on the Homebuyer Loan shall credited against the purchase price paid by the
City.
2. ___ City will check this Sentence #2 and complete other information listed in #2 if
the City intends for Owner to sell the Property to an Eligible Purchase during years 1-15 of the
Resale Restriction Agreement.
A. Affordable Sales Price: $ --------
B. Amount owed on Homebuyer Loan: $ ________ _
C. Full Sales Price (add numbers in 1 (A) and 1 (B)): $ _____ _
D. Fair Market Value (as estimated by the City):$ ______ _
The total price for which you may sell your Property ( or the Maximum Restricted Resale
Price) (the greater of 1 (C) and 1 (0)): $ _______ _
As noted in 2(8) above, the amount owed on the Homebuyer Loan is $ ____ . An
Eligible Purchaser is likely to assume the City Note and will then agree to repay the
amount of the Homebuyer Loan.
You must market your Property to an "Eligible Purchaser" as required by Section 15 of
the Resale Restriction Agreement.
The Maximum Qualifying Income of Eligible Purchaser is:
Low Income Household ---
1 person household $ -------
2 person household$ -------
3 person household $ ______ _
4 person household $ -------
5 person household $ ______ _
6 person household $ -------
Moderate Income Household ---
1 person household $ ______ _
D-2
IO I 0/17/2032990.2
2 person household $ ______ _
3 person household $ ______ _
4 person household $ ______ _
5 person household $ ______ _
6 person household $ ______ _
When you locate a proposed purchaser of your Property, you must provide the City with
the information listed in Section l 5(B) of the Resale Restriction Agreement and 15(0)( I)
through (4). Upon sale of your Property to a proposed purchaser who has been approved by the
City as an Eligible Purchaser, you must provide the information required by Section 15(0)(5)
through (7).
3. __ The City will check this Sentence #3 if it does not wish to exercise or assign its
option to purchase the Property between the sixteenth ( 16th) year of the Resale Restriction
Agreement and the end of the Term. At this point you may proceed to sell your Property to a
third party for a market price. Upon sale of the Property, you must provide the City with the
information required by Section 17 of the Resale Restriction Agreement. You also you must
repay$ _____ to the City as required by the City Promissory Note.
CITY:
Name: --~-----~-----
Title:
Date:
Designated Purchaser (if applicable):
Name: Name: ---------------------------
Date: Date:
D-3
1010/17/2032990.2
All questions regarding this notice should be directed to __________ _
0-4
IO I 0/l 7 /2032990.2
EXHIBIT E
FORM OF OWNER ACKNOWLEDGEMENT OF CITY RESPONSE NOTICE
Name:
Address of Property:
I (We), ____________ [insert name(s)] hereby acknowledge that I (We)
received the City Response Notice (as described in Section 10 of the Resale Restriction
Agreement on _____ [insert date(s)].
By:
Owner signature
Date:
By:
Owner signature
Date:
E-1
IO I 0/17/2032990.2
To:
From:
EXHIBIT F
FORM OF OWNER REQUEST FOR CITY SUBORDINATION
TO REFINANCED FIRST LENDER LOAN
City of Carlsbad ("City")
_______________ ("Owner(s)")
Property Address: _________________ ("Property")
The Owner hereby requests the City to approve the Owner's refinance of the existing first
mortgage on the Property. The Owner provides the following information which it certifies to be
true and correct:
1. Original Affordable Purchase Price of Property: $ ______ _
2. Original Homebuyer Loan Amount
3. Full Purchase Price of Property (1 plus 2) $ ______ _
3. Original principal balance of existing First Lender Loan: $ ______ _
4. Interest rate of existing First Lender Loan: $ ______ _
5. Outstanding principal balance of existing First
Lender Loan: $ -------
6. Monthly payments due on existing First Lender Loan $ ______ _
7. Principal amount of proposed new First Lender Loan: $ ______ _
8. Interest rate of Proposed new First Lender Loan: $ ______ _
9. Monthly payments to be due on new First Lender Loan: $ ______ _
The Owner hereby certifies the above information is true and correct and this Owner(s) Request
is executed under penalty of perjury on the date(s) below.
By:
Owner signature Date
By:
Owner signature Date
F-1
IO 10/17 /2032990.2
Recording Requested by:
FN-Y.G Builder Services
RECORDING REQUESTED BY:
FNTG Builder Services
Escrow No.: 5 ~ loo I I 1--006-AM4
Title No.: ~F <eo I 1 '-f -006-KC
WHEN RECORDED MAIL DOCUMENT AND
TAX STATEMENT TO:
City of Carlsbad
City Clerks Office
1200 Carlsbad Village Drive
Carlsbad, CA 92008
APN: 213-262-22-00 WOP
DOC# 2019-0610318
111111111111 lllll 111111111111111111111111111111 lllll 111111111111111111
Dec 27, 2019 04:22 PM
OFFICIAL RECORDS Ernest J. Dronenburg, Jr.,
SAN DIEGO COUNTY RECORDER
FEES: $29.00 (SB2 Atkins: $0.00)
PAGES:6
SPACE ABOVE THIS LINE FOR RECORDER'S USE
The undersigned declares exemption under the following:
~ Exempt from fee per GC 27383 ; No fee shall be charged by
the recorder for services rendered to the State, to any
municipality, county in the State or other political subdivision
thereof, except for making a copy of a paper or record.:¥.,.
Exempt from fee per GC 27388.1 (a) (2);
recorded concurrently In connection with
a transfer subject to the Imposition of
documentary transfer tax
NOTICE OF AFFORDABILITY RESTRICTIONS ON TRANSFER OF PROPERTY
DOCUMENT TITLE
Title Page of Document to Record
REC00059 (DSI Rev. 4/5/18) Escrow No.: SHK70057-006-AM4
Recording Requested by:
FNT(i Builrfer Services Sk ~ o ,1'7 ... ffO{o,fhtlj t<c-
RECORDING REQUESTED PURSUANT
TO GOVERNMENT
CODE SECTION 27383
When Recorded Mail To:
City of Carlsbad
City Clerk's Office
1200 Carlsbad Village Drive
Carlsbad, CA 92008
NOTICE OF AFFORDABILITY RESTRICTIONS ON TRANSFER OF PROPERTY
NOTICE IS HEREBY GIVEN, that the City of Carlsbad ("City"), has required Maryam Khalaj, A
Single Woman ("Owner") to enter into certain affordability covenants and restrictions entitled,
Affordability Restrictions on Transfer of Property, Occupancy, and Refinancing Restrictions and
Option to Purchase ("Restrictions"), with reference to certain real property located at 6034 Colt Place
#301, Carlsbad, CA 92009, San Diego County ("Property"), and further described in Exhibit A.
incorporated herein by reference.
The affordability covenants and restrictions contained in the Restrictions include without limitation
and as further described in the Restrictions:
1. The Property is restricted for resale to a low-income household at a purchase price
affordable to a low-income household, except as set forth in the Restriction.
2. The Owner must occupy the Property as the Owner's principal residence.
3. The Owner must give notice to the City before resale of the Property.
4. The Owner has granted the City an option to purchase the Property upon resale or default.
5. The Owner's rights to pledge the Property as security for a debt are limited.
In the event of any conflict between this Notice of Affordability Restrictions on Transfer of Property
("Notice") and the Restrictions, the terms of the Restrictions shall prevail.
The Restrictions have been recorded concurrently herewith and shall remain in effect for thirty (30)
years commencing on the date of recordation of the Restrictions.
This Notice is being recorded and filed by the City of Carlsbad ("City") in compliance with Health and
Safety Code Sections 33334.5(£)(3) and (4) and/or Section 33413(c)(5), as amended effective this date,
and shall be indexed against the City and the Owner.
IN WITNESS WHEREOF, the parties have executed this Notice of Affordability Restrictions on
Transfer of Property on or as of the date first written above.
CITY:
CITYOF CARLSBAD
By \/J\ j._ g l:;;:-,._
Mike Peldn, Acting ~mmunity and
Economic Development Director
Dated: _\~"L_\_z....;_"-\....,._\ ____,\5,___ __
2
T (Type name) 0
(PROPER NOTORIAL ACKNOWLEDGEMENT
MUST BE ATTACHED)
ACKNOWLEDGMENT
A notary public or other officer completing this
certificate verifies only the identity of the individual
who signed the document to which this certificate is
attached, and not the truthfulness, accuracy, or
validity of that document.
State of California
County of San Diego
On~.e,,,t,-:OL-t:, :a:Q\g before me, Morgen Fry, Notary Public
(insert name and title of the officer)
personally appeared ~\ f,.Q :P-e.,,,iU-Scrvl
who proved to me on the basis of satisfactory evidence to be the person(~ whose name~ is/at=e-
subscribed to the within instrument and acknowledged to me that he/SRe/~y-executed the same in
his/h0F.lth0iF-authorized capacity(ies), and that by his/l:l0F.lth0ir signature~on the instrument the
person(~. or the entity upon behalf of which the person~ acted, executed the instrument.
I certify under PENAL TY OF PERJURY under the laws of the State of California that the foregoing
paragraph is true and correct.
WITNESS my hand and official seal. 1············~ , MORGEN FRY
: ' •·• -Notary Public -California I · ; San Diego County !
Commission # 2268605 -
My Comm. Expires Dec 24. 2022
(Seal)
A notary public or other officer completing this certificate verifies only the
identity of the individual who signed the document to which this certificate
is attached, and not the truthfulness, accuracy, or validity of that document.
State of California
County of SAN DIEGO
CALIFORNIA ALL-PURPOSE
CERTIFICATE OF
ACKNOWLEDGMENT
before me, ___ E_._N_._MA_L_O_N_E~, _N_O_T_A_R_Y_P_U_B_L_I_C _____ _
(here insert name and title of the officer)
personally appeared ____ M________,___Q._te..._¼?-1--~..c._M_____,__-------'l_:5+-+{~A_L_-A,__,___Y ________ _
who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to
the within instrument and acknowledged to me that he/she/they executed the same in his/her/their
authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity
upon behalf of which the person(s) acted, executed the instrument.
I certify under PENALTY OF PERJURY under the laws of the
State of California that the foregoing paragraph is true and correct.
WITNESS my hand and official seal.
Signature CN (V'\_ ~~ ----------------------(Seal)
OPTIONAL INFORMATION
Although the information in this section is not required by law, it could prevent fraudulent removal and reattachment of this
acknowledgment to an unauthorized document and may prove useful to persons relying on the attached document.
Description of Attached Document
The preceding Certificate of Acknovl('._ledgment is attached ·tc, a document
titled/for the purpose of _ N_ .)--\-'-S:t.. _ o-{ __ Af't..CLt ~ ~h l L\
~~~-;~--~2"-'I~~~-f~-~~
containing pages, and dated
The signer(s) capacity or authority is/are as:
'-:] lndividual(s)
·7 Attorney-in-Fact
! I Corporate Officer(,) _
r· 1 Guardian/Conservator
Partner -Limited/Ceneral
l _: Trustee(s)
I Other:
T1tle(s)
representing:
, -------------N,1•1,r;{sl nf r,,rc,onlc.) er f"r1t11\'(1es) c.,qrwr 1~ Rrprt'',eritrnq
,,,,,11,ql11 )IJ(J, 21111 '✓ot,H\ Hot,11\,, lrH r'() H11:,:: ,! I,1,lrl. I Jf", 1'io1r1,•~, 1/, 'iC~ 11-0')1)/
Method of Sign~r Identification___________ _ __
Proved to me on the basis of satisfactory evidence:
1 -C form(s) of identification r credible witness(es)
Notarial event is detailed in notary journal on:
Page # Entry #
Notary contact:
Other
[ l Additional Signer(s) I ] Sr!)ner(s) 1humhprint(sl
[ __
PRELIMINARY REPORT
YOUR REFERENCE:
EXHIBIT "A"
LEGAL DESCRIPTION
Chicago Title Company
ORDER NO.: SK60117-006-AM4-KCI
THE LAND REFERRED TO HEREIN BELOW IS SITUATED CARLSBAD, IN THE COUNTY OF SAN DIEGO,
ST ATE OF CALIFORNIA, AND IS DESCRIBED AS FOLLOWS:
A CONDOMINIUM COMPRISED OF:
PARCEL I:
AN UNDIVIDED FEE SIMPLE INTEREST AS A TENANT IN COMMON IN AND TO THE COMMON AREA IN THE
MODULE IN WHICH THE RESIDENTIAL UNIT DESCRIBED IN PARCEL 2 BELOW IS LOCATED EQUAL TO THE
RECIPROCAL OF THE NUMBER OF RESIDENTIAL UNITS LOCATED WITHIN SUCH MODULE, AS SHOWN ON
THE AMENDED AND REST A TED CONDOMINIUM PLAN FOR KENSINGTON AT THE SQUARE, RECORDED IN
THE OFFICE OF THE COUNTY RECORDER OF SAN DIEGO COUNTY, CALIFORNIA, ON JUNE 13, 2019, AS
DOCUMENT NO. 2019-0230474, AND ANY AMENDMENTS OR SUPPLEMENTS THERETO (COLLECTIVELY
"CONDOMINIUM PLAN"), LOCATED IN A PORTION OF LOT I OF CARLSBAD TRACT NO. 14-09 UPTOWN
BRESSI RANCH, IN THE CITY OF CARLSBAD, COUNTY OF SAN DIEGO, ST A TE OF CALIFORNIA, ACCORDING
TO MAP THEREOF NO. 16253, FILED IN THE OFFICE OF THE COUNTY RECORDER OF SAN DIEGO COUNTY,
MARCH 9, 2018 ("MAP").
PARCEL 2:
RESIDENTIAL UNIT NO. 117, AS SHOWN AND DESCRIBED ON THE CONDOMINIUM PLAN;
PARCEL 3:
AN EXCLUSIVE EASEMENT TO USE EACH PORTION OF THE ASSOCIATION PROPERTY, IF ANY,
DESIGNATED IN THE CONDOMINIUM PLAN AS BEING AN EXCLUSIVE USE EASEMENT AREA
APPURTENANT TO THE RESIDENTIAL UNIT DESCRIBED IN PARCEL 2 ABOVE FOR THE PURPOSES
DESCRIBED IN THE DECLARATION OF COVENANTS, CONDITIONS AND RESTRICTIONS AND
ESTABLISHMENT OF EASEMENTS OF KENSINGTON AT THE SQUARE RECORDED IN THE OFFICIAL
RECORDS OF THE COUNTY RECORDER OF SAN DIEGO COUNTY, CALIFORNIA ON JUNE 13, 2019 AS
DOCUMENT NO. 2019-0230475, AND ANY AMENDMENTS AND SUPPLEMENTS THERETO (COLLECTIVELY,
THE "DECLARATION").
PARCEL 4:
A NON-EXCLUSIVE TEMPORARY EASEMENT FOR PEDESTRIAN AND VEHICULAR ACCESS, INGRESS AND
EGRESS BY GRANTEE OVER, UPON AND ACROSS THE PRIVATE STREETS MORE PARTICULARLY
DESCRIBED AS STREET MODULE A, STREET MODULE 8, STREET MODULE C, AND STREET MODULE D, AS
SHOWN ON THE CONDOMINIUM PLAN, AND DESCRIBED IN THAT CERTAIN ACCESS EASEMENT GRANT
DEED RECORDED IN THE OFFICIAL RECORDS OF THE COUNTY RECORDER OF SAN DIEGO COUNTY ON
SEPTEMBER 4, 2019 AS DOCUMENT NO. 2019-0380430, WHICH EASEMENT IS APPURTENANT TO THE
RESIDENTIAL UNIT DESCRIBED IN PARCEL 2 ABOVE.
PARCEL 5:
A NON-EXCLUSIVE EASEMENT, IN COMMON WITH OTHER OWNERS, FOR ACCESS, INGRESS AND EGRESS,
IN, TO, OVER, UNDER AND ACROSS CERTAIN PORTIONS OF THE ASSOCIATION PROPERTY DESCRIBED IN
THE DECLARATION, SUBJECT TO THE LIMITATIONS SET FORTH THEREIN, WHICH EASEMENT IS
APPURTENANT TO THE RESIDENTIAL UNIT DESCRIBED ABOVE.
CLTA Preliminary Report Form -Modified (I 1/17/06) Page 3