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HomeMy WebLinkAboutWright, Sara Jo; 2017-09-27;Recording Requested By: First American Title Subdivision Dept. Recording requested by and when recorded mail to: City of Carlsbad City Clerk's Office 1200 Carlsbad Village Drive Carlsbad, CA 92008 order::tl: YC!l2-2S'l-- N o fee for recording pursuant to Government Code Section 27383 DOC# 2017-0447287 11111111111111111111111111111111 lllll lllll 1111111111111111111111111111 Sep 28, 2017 03:29 PM OFFICIAL RECORDS Ernest J. Dronenburg, Jr., SAN DIEGO COUNTY RECORDER FEES: $66.00 PCOR: N/A PAGES: 12 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 2::T11 day of.~~' 2017, among Sara Jo Wright, an unmarried woman ("Borrower(s)"), as Trust-0,aTidFirst American Title Company ("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"; 1 1010\17\2051772.2 To have and to hold the Security together with acquittances to the Trustee, its successors and assigns forever; TO SECURE to the City the repayment of the sums evidenced by a promissory note in the amount of $227,000 (Two Hundred Twenty-Seven Thousand Dollars) 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 Agreement") and to secure the payment of Excess Sales Proceeds (as defined in the Resale Agreement) and Unauthorized Rental Proceeds (as defined in the Resale 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 the Resale Agreement, and there is no other deed of trust, or similar security financing interest, recorded against the Property. 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. 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 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 Agreement. Among other things, the Note contains the following provisions concerning repayment of the loan under certain conditions: IO I 0\ 17\2051772.2 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 Agreement). This Note is 2 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. Resale Agreement. The Borrower will observe and perform all of the covenants and agreements of the Resale Agreement. Among other things, the Resale 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; and (ii) 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 Agreement constitutes a default under this Deed of Trust. 4. 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 any 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. 5. 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. 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 City as its 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. 3 lOIO\l 7\2051772.2 Unless the City and the Borrower otherwise agree in writing, insurance proceeds 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 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 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. 6. 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. 7. Protection of the City's Security. If the Borrower fails to perform the covenants and agreements contained in this Deed of Trust or the Resale Agreement, or if any action or proceeding is commenced which materially affects the City's interest in the Security, including, but not limited to, eminent domain, insolvency, code 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 of reasonable 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. 8. 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. 4 IO I Oil 712051772.2 9. 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. I 0. 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 necessary, Borrower shall promptly take all necessary remedial actions in accordance with Environmental Law. 11. 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. 12. 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. 13. Joint and Several Liability. All covenants and agreements of the Borrower shall be joint and several. 14. 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 5 IO I 011712051772.2 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: Sara Jo Wright 2599 State Street Carlsbad, CA 92008 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. 15. Controlling Law. This Deed of Trust shall be construed in accordance with and be governed by the laws of the State of California. 16. Invalid Provisions. If any one or more of the provisions contained in this Deed of Trust, Resale 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 t~is Deed of Trust, the Resale 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 Agreement or the Note. 17. 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. 18. 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. 6 1010\17\2051772.2 19. 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 Deed of Trust. 20. Default; Remedies. Upon the Borrower's breach of any covenant or agreement of the Borrower in the Note, Resale 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 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 7 101 Oil 71205 l 772.2 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. 21. Acceleration. Upon the occurrence of a default under the Note, the Resale Agreement, or this 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 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. 22. 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 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 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 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. 23. 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. 24. 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. Remainder of Page Left Intentionally Blank 8 IO I 0\17\2051772.2 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 (Borrower Signature) (Print Name) (Proper Notarial Acknowledgement of Execution by Borrower(s) Must Be Attached) 9 I0I0\l 712051772.2 CALIFORNIA ALL-PURPOSE ACKNOWLEDGMENT CIVIL CODE§ 1189 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 /(///:6 ( County of_--f-f----1-'-++-------Ci\i .. :',';ER. AGUINALDO On------+-__,_,_~+-----before me, ________ h_Jl_l_TA_--R_Y_P_U_B_LI_C _____ _ " ,Ii ,, Here 11sertJfV!Jr an.d Ti e of the Officer personally appeared ----+-......Lf-_l_.__,_f_Tf_---;/'----+--"'L_' __ c_L_1,_/'-_, ..,..__-1-'-f-!--'--·.L.· ________ _ Name(s) of Signer(s) who pr_oved to me on the basis of satisfactory evidence to be the pers6~(s) whose name(sVf;/are subs{ri~ed to the within instrument and acknowled~e· to me that he/s~ey executed the s'arfi'e in his/~heir authorized capacity(ies), and that by hisA e /their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acte , 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 an,d official seal. -/ // ' f~" Signature / _/_, · ,y_/ Place Notary Seal Above ----------------OPTIONAL---------------- Though this section is optional, completing this information can deter alteration of the document or fraudulent reattachment of this form to an unintended document. Description of Attached Document Title or Type of Document: _____________ Document Date: _______ _ Number of Pages: ___ Signer(s) Other Than Named Above: ____________ _ Capacity(ies) Claimed by Signer(s) Signer's Name: ___________ _ Signer's Name: ___________ _ D Corporate Officer -Title(s): ______ _ D Corporate Officer -Title(s): ______ _ D Partner -D Limited D General D Partner -D Limited D General D Individual D Attorney in Fact D Individual D Attorney in Fact D Trustee D Guardian or Conservator D Trustee D Guardian or Conservator D Other: ______________ _ D Other: _____________ _ Signer Is Representing: ________ _ Signer Is Representing: ________ _ •~ ©2014 National Notary Association· www.NationalNotary.org • 1-800-US NOTARY (1-800-876-6827) Item #5907 File Number: DTR-4912257 Exhibit "A" Legal Description Real property in the City of Carlsbad, County of San Diego, State of California, described as follows: A CONDOMINIUM COMPRISED OF: PARCEL ONE: UNIT NO. 23, AS DEPICTED UPON THAT CERTAIN CONDOMINIUM PLAN RECORDED ON OCTOBER 27, 2015 AS DOCUMENT NO. 2015-0560290 (THE "PLAN''), AND AS DEFINED IN THE DECLARATION OF COVENANTS, CONDITIONS AND RESTRICTIONS FOR SEAGROVE, RECORDED ON AUGUST 20, 2015 AS DOCUMENT NO. 2015-0442117 (THE "DECLARATION"), ALL IN THE OFFICE OF THE RECORDER OF THE COUNTY OF SAN DIEGO, STATE OF CALIFORNIA, SAID UNIT BEING SITUATED ON A PORTION OF LOT 1 AS SHOWN ON THE MAP OF TRACT NO. 13-05, IN THE CITY OF CARLSBAD, COUNTY OF SAN DIEGO, STATE OF CALIFORNIA, ACCORDING TO MAP THEREOF NO. 16009, FILED IN THE OFFICE OF THE COUNTY RECORDER OF SAN DIEGO COUNTY, ON DECEMBER 29, 2014, AS DOCUMENT NO. 2014- 7000025 OF OFFICIAL RECORDS (THE "MAP''). PARCEL TWO: AN UNDIVIDED ONE-SIXTH (1/6TH) INTEREST IN THE "COMMON AREA" (AS DEFINED IN THE DECLARATION AND AS DEPICTED ON THE PLAN). PARCEL THREE: THE EXCLUSIVE RIGHT TO THE USE, POSSESSION AND ENJOYMENT OF THE EXCLUSIVE USE AREAS, IF ANY, APPURTENANT TO PARCEL ONE ABOVE, AS DEFINED IN THE DECLARATION AND AS DEPICTED ON THE PLAN WHICH ARE SET ASIDE AND ALLOCATED FOR THE EXCLUSIVE USE OF THE OWNER OF THE UNIT TO WHICH THEY ARE ATTACHED OR ASSIGNED. PARCEL FOUR: A NON-EXCLUSIVE EASEMENT FOR INGRESS AND EGRESS, SUPPORT, USE, ENJOYMENT AND RIGHTS OVER, UNDER, UPON AND THROUGH ASSOCIATION PROPERTY AS SHOWN ON THE PLAN AND DEFINED IN THE DECLARATION. EXCEPTING THEREFROM AND RESERVING THE FOLLOWING: 1. ALL THE CONDOMINIUM UNITS DEPICTED ON THE PLAN AND DEFINED IN THE DECLARATION OTHER THAN THE UNIT DESCRIBED IN PARCEL ONE ABOVE. 2. THE EXCLUSIVE USE AREAS, IF ANY, AS DEFINED IN THE DECLARATION AND/OR DEPICTED ON THE PLAN WHICH ARE SET ASIDE AND ALLOCATED FOR THE EXCLUSIVE USE OF THE OWNERS OF CONDOMINIUMS OTHER THAN THE UNIT DESCRIBED IN PARCEL ONE ABOVE. 3. NON-EXCLUSIVE EASEMENTS FOR INGRESS, EGRESS, SUPPORT, USE, ENJOYMENT AND RIGHTS OVER, UNDER UPON AND THROUGH THE ASSOCIATION PROPERTY APPURTENANT TO ALL UNITS AS SAID EASEMENTS AND RIGHTS ARE DEFINED IN THE DECLARATION. PARCEL FIVE: NON-EXCLUSIVE EASEMENTS AND RIGHT TO ENTER THOSE PORTIONS OF LOT 1, AS SHOWN ON THE MAP (BUT EXCEPTING THEREFROM THOSE UNITS, AS SHOWN ON THE PLAN, THAT ARE CONVEYED TO PERSONS OR ENTITIES OTHER THAN GRANTEE HEREIN) FOR THE PURPOSE OF PEDESTRIAN AND VEHICULAR INGRESS AND EGRESS FROM THE UNIT, AS SHOWN ON THE PLAN, THAT IS LOCATED ON LOT 1, AS SHOWN ON THE MAP, AND CONVEYED TO GRANTEE HEREIN IN PARCEL ONE, ABOVE, AND SUBJECT TO THAT CERTAIN ASSOCIATION PROPERTY CONVEYANCE AGREEMENT BETWEEN GRANTOR AND SEAGROVE HOMEOWNERS ASSOCIATION ("ASSOCIATION"). SAID NON-EXCLUSIVE EASEMENTS AND RIGHTS TO ENTER THOSE PORTION OF LOT 1, AS SHOWN ON THE MAP, SHALL AUTOMATICALLY AND IMMEDIATELY EXTINGUISH UPON CONVEYANCE OF SAID LOT 1 TO THE ASSOCIATION. Recording Requested By: First American Title Subdivision Dept. Recording requested by and when recorded mail to: City of Carlsbad City Clerk's Office 1200 Carlsbad Village Drive Carlsbad, CA 92008 .~rtl-cv-:tt i..tq P--7-~ 1---· No fee for recording pursuant to Government Code Section 273 83 DOC# 2017-0447286 11111111111111111111111111111111 lllll lllll lllll lllll 111111111111111111 Sep 28, 2017 03:29 PM OFFICIAL RECORDS Ernest J. Dronenburg, Jr., SAN DIEGO COUNTY RECORDER FEES: $0.00 PCOR: N/A PAGES: 26 DECLARATION OF RESTRICTIVE COVENANTS REGARDING RESTRICTIONS ON TRANSFER ()F PROPERTY, OCCUPANCY RESTRICTIONS, REFINANCING RESTRICTIONS, AND OPTION TO PURCHASE Note to Owner: (City of Carlsbad Homebuyer Program) Owner: Sara Jo Wright Address of Property: 2599 State Street Carlsbad, CA 92008 This document contains provisions restricting your ability to sell this property and obtain junior financing. This Declaration of Restrictive Covenants Regarding Restrictions on Transfer of Property, Occupancy Restrictions, Refinancing Restri~ons and Option to Purchase (this "Agreement") is entered into as of this,2 '/fhday of POtu-v,b o 4 , 2017, by and between the City of Carlsbad, a municipal corporation (the "City"~ and Sara Jo Wright, an unmarried woman ("Owner"). RECITALS A. The City has developed a 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 Homebuyer Program and in fulfillment of its inclusionary obligation pursuant to an Affordable Housing Agreement ("Affordable Housing Agreement") between Taylor Morrison of California, LLC, a California Limited Liability Company ('1Developer") and the City dated August 12, 2014, Developer made a loan (11Homebuyer Loan") in the amount of Two Hundred Twenty-Seven Thousand Dollars ($227,000) to allow for purchase of home by low income household located in Carlsbad, California on that certain real property and more particularly described in Exhibit A ("Property11), and then assigned the Homebuyer Loan to the City. 1 1010\17\2048983.l 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. D. The "Original Affordable Purchase Price" of the Property is $258,000 (Two- Hundred Fifty-Eight Thousand Dollars). The Original Affordable Purchase Price is the effective price of the Property paid by the Owner. The Owner paid the Original Affordable Purchase Price to the Developer utilizing the Owner's cash and the Homebuyer Loan. The actual price of the Property 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 Homebuyer 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") recorded in the Official Records of the County of San Diego (the "Official Records"). F. 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. G. This Agreement and the City Note require repayment of the Homebuyer 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 E. (5) "City Designated Purchaser" -Section 12B. (6) "City Note" -Recital E. 2 101011712048983 .1 (7) "City Option" -Section 12A. (8) "City Response Notice" -Section 10. (9) "Default" -Section 18 (10) "Eligible Purchaser" Section 15B. ( 11) "Excess Sales Proceeds" -Section 16. (12) "Extended Period" -1 0C. (13) "Fair Market Value" -Section 14B. (14) "Full Purchase Price" -Recital D. (15) "Full Sales Price" -Section 14A. (16) "Homebuyer Loan" -Recital B. (17) "Initial Period" -10B. (18) "Market Purchaser" -Section 1 0C. (19) "Maximum Restricted Resale Price" -Section 14. (20) "Median Income" -Section 14A. (21) "Official Records" -Recital E. (22) "Original Affordable Purchase Price" -Recital D. (23) "Owner" -first sentence of the Agreement on page 1. (24) "Owner's Notice of Intent to Transfer" -Section 8. (25) "Property" -Recital B. (26) "Proposed Purchaser" -Section 15A. (27) "Transfer" -Section 7. (28) "Unauthorized Rental Proceeds" -Section 4. B. The following Exhibits are attached to this Agreement: 3 IO I 0\ 17\2048983. I (1) Exhibit A: Legal Description of Property (2) Exhibit B: Form of Owner Occupancy Certification (3) Exhibit C: Form of Owner's Notice oflntent to Transfer (4) Exhibit D: Form of City Response Notice (5) Exhibit E: Form of Owner Acknowledgement of City Response Notice 2. OWNER CERTIFICATIONS 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 20 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 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 4 I 010\17\2048983.1 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 homebuyer education class offered by HomeStrong USA. 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 20 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, or 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; or (v) by Owner into an inter vivas revocable trust in which Owner is the Trustor; provided, however, that Owner shall provide written notice of all such transfers to City pursuant to Section 8 below; and Owner shall continue 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). 5 IO I 0\ 17\2048983.1 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 of Intent 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 30 of this Agreement. The Owner's Notice oflntent 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-I 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. 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; 6 IO I 0\ 17\2048983. I (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 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 7 101011712048983.l 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 of Intent 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 I 01 l 712048983. I 13. REPAYMENT OF CITY NOTE Upon any Transfer of the Property, 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 1 person is Fifty-Thousand Nine Hundred Fifty Dollars ($50,950). (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 9 IO I 011712048983. I order to determine the Maximum Restricted Resale Price pursuant to this section; (2) where the 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 PEI ORD 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: (1) 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 10 1010\17\2048983.1 providing all information requested by the City to assist the City in monitoring the Proposed Purchaser's compliance with the resale restriction agreement. 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 Homebuyer 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. 11 10\0\17\2048983. l (5) An executed buyer's resale 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 Home buyer Program, a promissory note to the City shall also be required. The recordation of the new deed of trust and buyer's resale 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 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 umestricted 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 12 1010\17\2048983.1 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 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 lien is recorded in the Official Records against the Property. (7) 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 26 below. (8) Owner declares bankruptcy or makes an assignment of assets for the benefit of creditors. 13 I 010\17\2048983. l 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; (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 20, 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 20, 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, 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. 20. PURCHASE OPTION UPON DEF AULT 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 subject to notice and cure rights set forth in Section 19. 14 IO I 011 712048983. I 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 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. 21. 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 20 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 21 (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, 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. 15 1010\ 17\2048983.1 22. 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. 23. 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. 24. 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. 25. 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. 26. NO JUNIOR FINANCING PERMITTED 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 16 IO I 0117\2048983. I the requirements of this section are necessary to ensure the continued affordability of the Property to Owner and to minimize the risk of loss 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. 27. 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. 28. 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. 29. INVALID 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. 30. 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: IO I 0117\2048983. l To Owner(s): Sara Jo Wright 2599 State Street Carlsbad, CA 92008 17 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. 31. 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 20), 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. 32. 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. 33. 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 18 IO I 0\ 17\2048983. I 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). 34. TIME IS OF THE ESSENCE In all matters under this Agreement, the parties agree that time is of the essence. 35. 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. 36. EXHIBITS Any exhibits referred to in this Agreement are incorporated in this Agreement by such reference. 37. INTREPRETATION 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. 38. NON-WAIVEROFBREACH 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. 19 IO I 0\ 1712048983.1 39. 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. 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. D. OWNER UNDERSTANDS 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 CONS ID ERA TION 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. 20 1010\17\2048983. l 40. 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. Remainder of Page Left Intentionally Blank 21 IO I 011712048983. I 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 By: /~I Name: Marisa Lundstedt Its: OWNER: / By: Name: --------------- (Proper notarial acknowledgment of execution must be attached) 22 1010\17\2048983.1 CALIFORNIA ALL-PURPOSE ACKNOWLEDGMENT CIVIL CODE§ 1189 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 ){Jf(1J County of • , fl " On ://.J _ J before me, ____________________ _, r Dae --:,,7,_)· ,/ .Jil ,ere ln~~rf2Name,nd jtle of the Officer . ,, •. ~ .~. /.C~Uif,J;\LDO OlARY PUBLIC personally appeared ----~·~f_._v_r_ ·1_-+-___ {_1 _/_-/~6_:)~/~---------- . ' who proved to me on the basis of satisfactory evidence to be theson(s) whose name(s) ,{s/are subs ibed to the within instrument and acknowled a to me that het he/they executed the s~i in his/~/their authorized capacity(ies), and that by his/~/their signature( he instrument the person(s), or t~entity upon behalf of which the person(s) acte~executed the instrument. Place Notary Seal Above 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. . -J • , I/ • ', !\{/ '/. ·c •' / 't. 'l('/// . / 't ,·/·(/• Signature c_.,,f " // l/ ll -1 / u/'+{'f ·Z ~ Signature of Notary P blic I ----------------oPTIONAL---------------- Though this section is optional, completing this information can deter alteration of the document or fraudulent reattachment of this form to an unintended document. Description of Attached Document Title or Type of Document: _____________ Document Date: _______ _ Number of Pages: ___ Signer(s) Other Than Named Above: ____________ _ Capacity(ies) Claimed by Signer(s) Signer's Name: ____________ _ Signer's Name: ____________ _ D Corporate Officer -Title(s): ______ _ D Corporate Officer -Title(s): ______ _ D Partner -D Limited D General D Partner -D Limited D General D Individual D Attorney in Fact D Individual D Attorney in Fact D Trustee D Guardian or Conservator D Trustee D Guardian or Conservator D Other: _____________ _ D Other: ____________ _ Signer Is Representing: _________ _ Signer Is Representing: _________ _ ©2014 National Notary Association· www.NationalNotary.org • 1-800-US NOTARY (1-800-876-6827) Item #5907 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) personallyappeared Man~ Lu.Y"'\d.S~ who proved to me on the basis of satisfactory evidence to be the person~ whose name~ is/E!fe. subscribed to the within instrument and acknowledged to me that heishe/trtey..executed the same in 'ht&/her/tRsi.c.authorized capacity(1'es)., and that by'his/J,er/fhei.( 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. Signature~ e-6 (Seal) 1• a a a a a a a e ':.&Rie\}R;• a a •1 a Comm1111on # 2091497 j Notary PUOllc -California ~ ) San Diego County ~ 4 W • o W Jl~°T"!· t=rt1882:\n1i( File Number: DTR-4912257 Exhibit "A" Legal Description Real property in the City of Carlsbad, County of San Diego, State of California, described as follows: A CONDOMINIUM COMPRISED OF: PARCEL ONE: UNIT NO. 23, AS DEPICTED UPON THAT CERTAIN CONDOMINIUM PLAN RECORDED ON OCTOBER 27, 2015 AS DOCUMENT NO. 2015-0560290 (THE "PLAN''), AND AS DEFINED IN THE DECLARATION OF COVENANTS, CONDITIONS AND RESTRICTIONS FOR SEAGROVE, RECORDED ON AUGUST 20, 2015 AS DOCUMENT NO. 2015-0442117 (THE "DECLARATION''), ALL IN THE OFFICE OF THE RECORDER OF THE COUNTY OF SAN DIEGO, STATE OF CALIFORNIA, SAID UNIT BEING SITUATED ON A PORTION OF LOT 1 AS SHOWN ON THE MAP OF TRACT NO. 13-05, IN THE CITY OF CARLSBAD, COUNTY OF SAN DIEGO, STATE OF CALIFORNIA, ACCORDING TO MAP THEREOF NO. 16009, FILED IN THE OFFICE OF THE COUNTY RECORDER OF SAN DIEGO COUNTY, ON DECEMBER 29, 2014, AS DOCUMENT NO. 2014- 7000025 OF OFFICIAL RECORDS (THE "MAP''). PARCEL TWO: AN UNDIVIDED ONE-SIXTH (1/6TH) INTEREST IN THE "COMMON AREA" (AS DEFINED IN THE DECLARATION AND AS DEPICTED ON THE PLAN). PARCEL THREE: THE EXCLUSIVE RIGHT TO THE USE, POSSESSION AND ENJOYMENT OF THE EXCLUSIVE USE AREAS, IF ANY, APPURTENANT TO PARCEL ONE ABOVE, AS DEFINED IN THE DECLARATION AND AS DEPICTED ON THE PLAN WHICH ARE SET ASIDE AND ALLOCATED FOR THE EXCLUSIVE USE OF THE OWNER OF THE UNIT TO WHICH THEY ARE ATTACHED OR ASSIGNED. PARCEL FOUR: A NON-EXCLUSIVE EASEMENT FOR INGRESS AND EGRESS, SUPPORT, USE, ENJOYMENT AND RIGHTS OVER, UNDER, UPON AND THROUGH ASSOCIATION PROPERTY AS SHOWN ON THE PLAN AND DEFINED IN THE DECLARATION. EXCEPTING THEREFROM AND RESERVING THE FOLLOWING: 1. ALL THE CONDOMINIUM UNITS DEPICTED ON THE PLAN AND DEFINED IN THE DECLARATION OTHER THAN THE UNIT DESCRIBED IN PARCEL ONE ABOVE. 2. THE EXCLUSIVE USE AREAS, IF ANY, AS DEFINED IN THE DECLARATION AND/OR DEPICTED ON THE PLAN WHICH ARE SET ASIDE AND ALLOCATED FOR THE EXCLUSIVE USE OF THE OWNERS OF CONDOMINIUMS OTHER THAN THE UNIT DESCRIBED IN PARCEL ONE ABOVE. 3. NON-EXCLUSIVE EASEMENTS FOR INGRESS, EGRESS, SUPPORT, USE, ENJOYMENT AND RIGHTS OVER, UNDER UPON AND THROUGH THE ASSOCIATION PROPERTY APPURTENANT TO ALL UNITS AS SAID EASEMENTS AND RIGHTS ARE DEFINED IN THE DECLARATION. PARCEL FIVE: NON-EXCLUSIVE EASEMENTS AND RIGHT TO ENTER THOSE PORTIONS OF LOT 1, AS SHOWN ON THE MAP (BUT EXCEPTING THEREFROM THOSE UNITS, AS SHOWN ON THE PLAN, THAT ARE CONVEYED TO PERSONS OR ENTITIES OTHER THAN GRANTEE HEREIN) FOR THE PURPOSE OF PEDESTRIAN AND VEHICULAR INGRESS AND EGRESS FROM THE UNIT, AS SHOWN ON THE PLAN, THAT IS LOCATED ON LOT 1, AS SHOWN ON THE MAP, AND CONVEYED TO GRANTEE HEREIN IN PARCEL ONE, ABOVE, AND SUBJECT TO THAT CERTAIN ASSOCIATION PROPERTY CONVEYANCE AGREEMENT BETWEEN GRANTOR AND SEAGROVE HOMEOWNERS ASSOCIATION ("ASSOCIATION"). SAID NON-EXCLUSIVE EASEMENTS AND RIGHTS TO ENTER THOSE PORTION OF LOT 1, AS SHOWN ON THE MAP, SHALL AUTOMATICALLY AND IMMEDIATELY EXTINGUISH UPON CONVEYANCE OF SAID LOT 1 TO THE ASSOCIATION. A.P.N.:zc ?J -cs~-u4-32_