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HomeMy WebLinkAbout1977-10-18; City Council; 5170-1; Authorizing Mayor to Execute all Documents Relative to and Acceptable to Property Known as Assessor Parcel No 203-294-02-03-04-05-06Initial : e CITY OF r * RLSBAD I,' l b I AGENDA BILL NO. Dept. Hd. DATE: OCTOBER 18, 1977 City Atty vE DEPARTMENT: CITY MANAGER City Mgr. -i. SUBJECT : AUTHORIZING THE MA7Q-R TO EXECUTE ALL DOCUMENTS RELAT TO, AND ACCEPTABLE TO THAT PROPERTY KNOWN AS ASSESS0 PARCEL NO. 203-294-02-03-04-05-06. STATEMENT OF THE MATTER REQUEST: At it'.s meeting of August 16, 1977 the City Council authorized t acquisition of the property at the north west corner of State an Grand at a cost not to exceed $118,000.00. An offer was subsequ made and accepted by the seller. The offer was contingent upon appraisal coming in at $118,000 or more and a finding of General Conformity. Both of these items have been cleared and the trans is now ready to be closed. The sixty days escrow period will expire on October 18, 1977. I order to comply with the terms of the offer as accepted by the s Council should consider the attached resolution. EXHIBITS: City Council Resolution No.5236 RECOMMENDATION: If Council wishes to close escrow in accordance with the origina offer, it should adopt Resolution .No. 623&, Council Action: 10-18-77 Council adopted Resolution No. 5236, authorizing the M; to execute all documents relative to, and to accept to property known as Assessor Parcel .No. 203-294-02-03-04- FORM PLANNING 73 P c- 8 1 2 3 4 5 6 7 8l y IQ II 32 13 14 15 16 17 l8 19 20 21 22 23 24 25 26 27 20 a e RESOLUTION NO. 5236 ____ A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARLSBAD, CALIFORNIA, AUTHORIZING THE MAYOR TO EXECLJTE ALL DOCUMEPTS RELATIVE TO, AND TO ACCEPT TO THAT PROPERTY KNOWN AS ASSESSOR PARCEL NO. 203-294-02-03-04-05-06. WHEREAS, the City Council of the City of Carlsbad on A 16, 1977 authorized the acquisition of the subject property cost not to exceed $118,000; -and WHEREAS, on August 17, 1977, said offer was made conti upon the receipt of an independent appraisal of $118,000, a a Planning Commission finding of General Plan Conformity; a WHEREAS, said offer was accepted by the sellers of sub property; and WHEREAS, all contingencies have been cleared and all d necessary to transfer the owners3ip to the City are ready f execution. NOW, THEREFORE, BE IT RESOLVED by the City Council of City of Carlsbad as follows: 1) That the above recitations are true and correct. 2) That the subject property is of great importance to the efforts to revitalize the Village Area because of its s location and physical condition. 1 3) That the transfer of $118,000 for the acquisition of sa property from the general fund balance to the capital improvements account is hereby authorized and approved, that the Department of Finance transfer No. 6 on file said department and incorporated by reference is herebs approved. 4) That the City Council hereby authorizes the Mayor to ex a11 documents necessary to consummate the transfer of t subject property to the City of Carlsbad. PASSED, APPROVED AND ADOPTED at a regular meeting of t Carlsbad City Council held on the 18th day of October, 1977 the following vate, to wit: e a I# fn Councilmen Frazee, Lewis, Packard and Skotnici NOES : None AESENT: Councilwoman Casler ABSTAIN: None g?&JC A/2& ROBERT C. FRAZEE, May r c Y .2 e * LEE @. JOHNSON, COnplPANY I *. . 8321 Lemon Avenue La Mesa, California 92041 (71 4) 462-4350 October 7, 1977 Mr. Jack Henthorn Redevelopment Coordinator City of Carlsbad Carlsbad, California 92 GO8 -- For professional services rendered . . . . . . . . . . . . . . . . . . . . $780. 00 RE: 2897 State Street C arlsbad, C ai iiornia Our File No. '77472 GR: ab To insure proper credit, please return one copy of this invoice with your payment. REAL ESTATE APPRAISAL CONSULTATIONS RESEARCH m 0 8321 Lemcn Avenue La Mesa, Caiifornia 92041 I LEE - 6. JOHNSON, rvOh/iPANY (71 4) 462-4350 Lee C. Johnson, M.A.I. James T. Hooker Tom Hunter, C.P.M. Arthur D. Sandy Stephen A. Mason Gary L. Rasmuson October 5, 19.'77 Mr. Jack Henthorn Redevelopment Coordinator City of Carlsbad Carlsbad, California 92 008 Dear Mr. Henthorn: Pursuant to your request we have made an appraisal of a parcel of land located in the City of Carlsbad, California known as 2897 State Street, as inore particularly described in the enclosed report. gation as set forth herein and subject to the limiling conditions included within the body of this letter report, it is our opinion that the property, assuming fee simple interest, has a fair market value as of September 26, 1977 of Based upon our investj One Hundred Eighteen Thousand Dollars . . . . . . . . . . . . . $118,000.. . . . . . . . . . . . . . A summary of our investigation and the pertinent data upon which this valua tion is based follows. Investigation In arriving at an estimated value for the subject property an inspection was made of the site and the surrounding area. sales within our files as well as comparable sales that were found by searcl ing the public records. In the process of thjs investigation, buyers and sellers were contacted in an effort to confirm the information contained herein. Location The subject site is a rectangularly shaped parcel of land located in the nortl west corner of the intersection of State Street and Grand Avenue within the City of Carlsbad, California. California along the coast of northwest San Diego County; 35 miles north of San Diego, and 90 miles south of Los Angeles on Interstate 5. The city covers an area of over 34 square miles and its estimated population in 1976 was 23,200 indicating an increase of 42.5 percent sjnce 1970. The tri-city area of Carlsbad, Oceanside, and Vista is one ofthe fastest growing areas Comparisons were made from The City of Carlsbad is located in southern REAL ESTATE APPRAISAL CONSULTATIONS RESEARCH e 1' Mr. Jack Henthorn October 5, 1977 ~ Pige2 1 in the entire San Diego County. Some of the reasons for this growth includ having an ideal climate averaging around 70 degrees annually with an aver- age annual rainfall of 9.45 inches. Another reason for the attraction to thi< area is due to the wide open tracts of land along Interstate 5 at Palornar lic and around Palomar Airport which are ideal sites for industrial developme Some oi the larger corporations which are presently located in Carlsbad include Beckman Instruments, Burroughs, Hughes Aircraft, Stillinan Seal, Lancer Pacific, and Cabot, Cabot and Forbes Industrial Park. This indus trial development @ves the city a growing commercial and industrial tax base which is an excellent supporter of future growth of the city. Another indicator of the growth Sn this area is the issuance of new building pcbrmits The City of Carlsbad issued 2, 041 new building permits in 1976 as compare to 589 in 1975. As of January 1, 1976 there were approximately 30, 202 hou: ing units located in Carlsbad according to the Integrated Planning Office of San Diego County. Primary access to Carlsbad is provided by Interstate 5 which runs north- south through the city. County Highway 21, which runs north-south along the coastal area of Carlsbad, is a secondary traffic route connecting Carls to the other cities in the north county. The subject property is approximal one and one-half blocks off this major route and approximately five blocks west of Interstate 5. The retail trade area of Carlsbad boasts a wide asso ment of shopping facilities, being led by the Plaza Cainino Real Regional Shopping Cenier located on the easterli edge of the city. The future for Carlsbad looks good with industry potential a strong plus as is the availability of housing to support the influx of people which industry draws. The downward trend of the property tax rate is also a strong indic tor of future expansion and a healthy economy overall. Property Description As is shown on the attached plat map, the subject property is rectangular shape and is divided into five parcels on the assessor's map for a. total of sk lots. The site offers 150 feet of frontage on State Street and 100 feet 0: frontage on Grand Avenue. The legal description is Lots 1 through 6, Bloc G, Town of Carlsbad Amended. The record owners since September 17, 1 are Viola F. Bellinger and Marjorie H. Henry. with the existing streets and has curb, gutter, and sidewalks on site. Seu water, gas and electricity are available. Zoning is C-2, general commer This zoning is consistent with the overall general plan for a central businc district area as set out by the City of Carlsbad. Access to the propel-ty js by either State Street or Grand Avenue and a paved alley is in existence to the rear of the lots. The property is described according to the San Diegc County Assessor's office as A.P. Nos. 203-294-02, 03, 04, 05, ant3 06. The property is at grade - LEE C. JOHNSON COMPANY .e 0 Mr. Jack Eenthorn Page 3 October 5, 1977 Present Use Lots 1 through 4 (100 ft. x 100 ft. corner) is improved with a one-story m frame radiator shop. The improvements arc in poor condition. Occupai rent is $250 per month under a sublease. The balance of the property (50 ft. x 100 ft. jnside) is improved with a on story wood frame commercial building occupied by a contractor who sub1 a portion of the property to a restaurant. Contract rent under a sirbleasc is $240 per month with the contractor receiving $150 per month froin the restaurant. The entire 100 it. x 150 ft. parcel is leased on an absolute n basis from the owner for $175 per month. Llength of the lease was for te years terminating on December 31, 1979. A11 improvciments belong to th lessee who has the right to remove them at the end of the lease. A rc:caE of the income stream follows. Owners - Bellinger and Henry Lessee - Graff $1 7 5 /month Pays all expenses including taxes and insurance Sublessee A - Radiator Shop Sublessee B - Contractor's Office Sub-sublessee of B - Sandwich Shop 2 5 0 / rn ont h 2 4 0 /m onth 150/month Gross Income to Owners $1 7511 , Gross Income to Sublessee 490 11 Gross Income to Sub-sublessee 150/r Highest and Rest Use In our opinion, the best use €or this property at the present time is for commercial development with the maximum value being obtained for the J cel by developing the entire site under one usage rather than breaking it into smaller parcels. This properly would be an jdcal location for busin1 such as a fast food chain or a financial institution. The rnastcr ]case on property terminates December 31, 1979 , thus having approximately 27 mc remaining. At the end of this lease period the buildings w7jll revc.13 lo thf land owner or be salvaged by the lessee. 'This will jiialie the propcJ-ty av able for development to its highest and best usage. opinion, these structures currently provide an interim value to the lessel In your appraiser's LEE C. JOHNSON COMPANY > 'L a 0 Mr. Jack Henthorn Page 4 October 5, 1977 due to the right to receive the rental income during the term of the lease 'To the fee owner they are of a negative value as the rent will not support land value. At the termination of the lease, the best use for the subject property would be to remove the buildings to facilitate a more economic use as was earlier discussed. Valuation In arriving at a valuation Tor the subject property, a review was made of files and a search was made of the immediate area for any recent sales i would be indicative of the value of the site either unimproved or as imprc with interim improvements. In t.ota1, over twenty transactjons were rev Comparisons were most difficult as all but one of the sales were imp€-ovt with facilities of varying contributory value. In analyzing the data it is i portant to remember that the subject site offers sufficient size to accomi date a franchise food outlet or a lender desirous oi representation in the Carlshad area. Its location at a key interchange further colitributes to tl above usages. As there are no vacant parcels available, a prospective u will have to pay a premium for improvements on any competitive site wh the rental value provides a reasonable return on an interim usage. I11 th case of the subject, the improvements are of a plus value to the sublease The grantors position would be improved if there wereno lease. Transaction No, 1 (A.P. No. 203-397-03) is located at the southwest cor of the Staie Street and Elm Avenue in the City of Carlsbad. It is ideritifia as 505 Elm Avenue. This 7, 000 square foot site sold in March of 1976 fc $90, 000 or $12. 86 per square foot including a one-story brick structure currently occupied by the Carlsbad Camera Shop. The site is zoned C-2 is generally level, and has all utilities available. The transaction rook F between Harold Thompson, the seller, and Harold Muller. This propert, in an excellent location, very comparable to that of the subject. The irnl ments are considered superior to that of the subject, but the size of the 2 ject is slightly superior. Overall this transaction sets an upper limit of value for the subject. Transaction No. 2 (A.P. No. 203-054-18) is located at 2615 State Street Carlsbad. Chester L. Burke sold to Ernest J. Litchfield, et al. in July 1977 for $65, 000. The site contains 9, 600 square feet and indicates 2 pr of $6. 77 per square foot. automotive repair shop occupied by Gene's Automotive Repairs. The ZOI is C-2 and the site has 211 utilities available. superior to the subject's, however the location is inferior, 1c:aving an ov all plus adjustment considering time and other factors. Transaction No. 3 (A.P. No. 203-101-11) is located at 2697 State Street carlsbad. Clement K. Kanelrailus sold to Cecil R. Cotten in March of 1 for $70,000. The site contains 11, 016 square ieet, indicating a unit price The site is improved with a one-story stucco These improvements are LEE c. JOHNSON COMPANY e -. e Mr. Jack Henthorn Page 5 October 5, 1977 $6.35 per square foot. story commercial office building. but the size and location are inferior requiring an overall plus adjustment. Transaction No. 4 (A.P. No. 203-296-08) is located at 457 Elm Avenue in Carlsbad. $6. 03 per square foot. the current owner-occupier of the one-story commercial improvement. Zoning is C-2. The location is very comparable to the subject property and the improvement is superior. The low sales price reflects the exerclse of an option negotiated in the past and is not reflective of the current fair mar- ket value of the property as evidenced by Transaction No. l. Transaction - No. 5. (A.P. No. 203-351-18) is located at the corner of Madis Street and EIZTXivenue in Carlsbad. Mobil Oil Corporation sold to Kentuck; Fried Chicken Eaiional Management Company in October of 1974 for $125, 0C The lot is 150 feet by 140 feet or 21, 000 square feet indicating a unit price of $5. 95 per square foot. The site was improve(: with an older service station facility with underground tanks at the time of purchasc however, these improvernents were removed to allow construction of the existing fast-food structure. This site is very comparable to the subject in all respects; however, an overall plus adjustment should be made for time. Transaction No. 6 (A.P. No. 205-054-16) is located at 2633 State btreet i C-bad. Vivian Edwards et al. sold to Robert K. Brown in October of 1975 for $26, 000. The lot is rectangular in shape and contains 5, 376 squar feet indicating a unit price of $4. 84 per square foot. proved with an old single family residence now converted into an antique store. property which is C-2 zoned. Location is inferior being situated on the fringe of the commercial area of downtown Carlsbad. A plus adjustment should a1 so be made for time. Transaction No. 7 (A.P. No. 203-054-01) is located at 2763 State Street Carlsbad. W. Scott Rogers purchased from K. E. Ebrjght this 10, 880 squ foot site in December of 1975 €or $52, 000. This indicates a unit price of $4.78 per square foot for this C-2 zoned site. The property was improve1 at the time of sale with minimal improvements which were subsequently enlarged to house the current pool and patio business operated by the ownc The majority of the site serves as a paved parking lot and storage area fo the business. The location is inferior, being an inside lot and a plus adju rnent should also be made for lime. Transaction No. 8 (A.P. No. 203-304-16) is located at 2945-51 Macljson Street in Carlsba6. to the Phal Investment Company in February of 1977 for $30, 000. Zoning is (2-2. Site is improved with an older one- This structure is superior to the subject, This,200 square foot side sold in May of 1977 for $67, 500 or Barbara Morse et al. sold to Billy Rybum who is Zoning is C-2. The property is im- The improvements are considered to contribute little value to the Patrick W. Scott, et al. sold this 7, 000 square €oat c This LEE C. JOHNSON COMPANY 0 0 ,. , Mr. 'Jack Henthorn Page 6 October 5, 1977 . indicates a unit price of $4.28 per square foot for the property. is C-2 and utilities are available to the site. There are two small single family units on the site which have been converted into commercial uses. These improvemknts are of marginal value providing an interim use. The inside lot location is inferior to the subject property's requiring an overall plus adjustment. Con clu s ion Due to the lack of available vacant land in the commercial area of down tow^ Carlsbad, investors wishinu to construct new busincsses in this area are forced to buy sites already improved with older buildings and then remove these structures. value, with the buyer paying little for the existing structures. desirability and economics of locating in this area increase, this situation will become more prevalent. remove the structures, the buildings may provide an interim value to the lessee while the grantor receives a negative value. The subject property is currently in this situation. In review of the sales data submitted herein, it is apparent that sale No. 5 is the most comparable in all respects except the 1974 date which would re quire an l-ipward adjustment. Using 1% per month in.?icates a currefit value for the subjeci if vacant of $8. 36 per square foot. Sale No. 1 is also comparable to the subject locationwise, however, the improvements are better overall. It is your appraiser's opinion that the improvements contribute approximately $36, 000 leaving a residual to the land of $54, 000 or $7.71 per square foot. The remaining sales require major adjustments for location. No. 7 at $4. 78 per square foot in January, 1976 was the most helpful. justing for time (2170) and location (2570) indicates a value of $6.98 per square foot. The sales thus submitted indicate a land value varying from a low of $6.91 per square foot to a high of $8.36 per square foot. In consideration of the subject size and prime location, and the lack of vacant competing sites, if is our opinion that its fair market value as of September 26, 1977 is $120, 000 or $8. 00 per square foot if free and clear of all leases. In determining the value of the property as leased, consideration \vas givt to the fact that they belong to the current lessee of the property and have approximately 27 months remaining on the lease agrecment. The current gross n~onlbly income receivable from the two buildings is $490. The Zoning b The purchase price is generaliy reflective of the land As the Until it becomes economjcally feasible to Transactior Ad b LEE c. JOHNSON COMPANY 0 0 *I. Mr. Jack Henthorn Page 7 October 5, 1977 radiator shop is subleased for $250 per month and the contractor's office subleases for $240 per month. utilities, etc. should be around 30'% of gross or $147 per month. then leaves $343 per month net to the sublessee. owner recejves $175 per month. price for a premium site would not want to wait 27 months for development. A reasonable tjme for escrow, plans, and permits would be 12 months. Any period beyond this would work to the owner's djsadvantage and it would pay him to purchase the lessee's interest. period would be $2, 520 ($490. 00 less 3070 expenses less $175 lease payment times 15 months). pairs towards the end of the lease period, it is reasonable to assume that the sublessee would sell his position at the end of one year for approximatel $2, 000 indicating $ value for the fee simple interest of $118, 000. Our limiting conditions and certification follow. Sincerely yours, Expenses for management, maintenance, This From this amount the A potential purchaser paying a prem.tum Lessee's net income for the Considering the possibility of vacancies or major re- &: qF l-3 OL-iC3 : b77-m&7L---------\ Gary Rasm&ni ?i #? r -\ x t-f p ,c I' jJ2 L I 1.. f i.lL I# Le& Cu J ohm on/' d LEE C. JOHNSON COMPANY - - -- -.. - ^_. - - .* r.. . --i.- 7.*si--- -- SI-..- i.IFr-= __ ----e .-.-=-- ;t ,-- rq 2 t: L-.d 0 1. ” LI.*.u*L--rm.. --- Lee C. Johnson Company a 0 *. . LINIITING CONDI'TIONS AND ASSUMPTIONS In the preparation of this report certain basic assumptions have been relied upon. scribe the scope of this report. There are also certain limiting conditions which circum- 1. It is assumed that information and data, including maps and engineering estimates, furnished by our client and others are substantially correct, 2. That no parahtee is made as to the correctness of estimates or opinions furnished by others and which have been used in making this appraisal. liabilities be assumed on account of inaccuracies in such estimates or opinions. That no 3. As a title report has not been furnished, title of the properties appraised is assumed to be marketable and free of all liens and encumbrances including ea s e m e nt s , r ight s - of - way, re s tr i c t io ns and re s e r - vations of record which could adversely affect their value. 4. That no liability is assumed on account of matters of a legal nature affecting this property, such as title defects, liens, encroachments, overlapping boundaries et cetera. 5. Maps, photos and plats furnished by this appraiser are not based on a survey but are furnished as an aid to the reader in visualizing the property. 6. Disclosure of the contents of this appraisal report is governed by the By-Laws and Regulations of the Arneri- can Institute of Real Estate Appraisers of the National Assocjation of Real Estate Boards. Neither all nor any part of the contents of this report I (especially any conclusions as to value, the identity of the appraiser or the firm wit'h which he is connected, or any reference to the American Institute of Real Estate Appraisers or to the M.A. I. or R. hll. designation) shall be disseminated to the public through advertising media, public relations media, news media, sales media or an)* other public means of communication wilhout the prior written consent and approval of the Lee C. Johnson Com- P""Y * ? LEE C. JOHNSON. COMPANY .. e -. CERTIFICATE OF A PPRAISA IJ The undersigned does hereby certify as follov,s: I have inspected the property. I have no present or contemplated future interest in the real estate that is the subject of this appraisal report. I have no personal interest or bias with respect to the subject matter of this appraisal report or the parties involved. To the best of my knowledge and belief the statements of fact contained in this appraisal report, upon which the analyses, opinions and conclusions expressed herein are based, are true and correct. This appraisal report sets forth all of the limiting con- ditions (imposed by the terms of my assignment or by the undersigned) afiecting the analyses, opinions and conclusions contained in this report. This appraisal report has been made in conformity with and is subject to the requirements of the Code of Pro- fessional Ethics and Standards of Professional Conduct of the American Institute of Real Estate Appraisers of the National Association of Real Estate Boards. No one other than the undersigned prepared the analyses, conclusions and opinions concerning rea! estate that are set forth in this appraisal report. The real estate which is the subject of this appraisal re- port was valued as of September 26, 1977. fgL ~izL>p~’!~. 7 -_I \ .muson l-7 Lee Li2-F C, Joliiyd h!( Gary &ac 3’ LEE C, JOHNSON. COMPANY .e * -- . .I QUALIFICATIONS OF LEE C. JOHNSOX, M.A.I. E ducat ion San Diego State College, A. 13. Degree Political Science and Economics - 1953 University OS California , Extension Division Certiiicate in Real Estate - 1963 Numerous seminars and conferences on Real Estate Valuation and Eminent Domain American Institute of Real Estate Appraisers Certificate No. 4844 - 1973 American Right of Way Association President - 1975 Society of Real Estate Appraisers President - 1967, Vice Governor - 1969 SRA designation awarded 1961 SRPA designation awarded 1972 County of San Diego - 1953 to 1956 State of California - 1956 to 1963 Owner, Lee C. Johnson Company - 1963 to present Real Estate Instructor since 1958 €or the University of California, Extension Division. Certified instructor for the following: American Institute of Real Estate Appraiser American Right of Way Association American Savings and Loan Institute Society of Real Estate Appraisers Real Estate Appraisal . Real Estate Appraisal for Investment Purpo Econoinics of Right of Way Valuation Member - Real Estate Advisory Board, ‘IJniver sity of California, Extension Division Qualified as Expert Witness, Superior Court, County of San Diego, State of California and in Federal Bankruptcy Court Professional Memberships Appraisal Experience Supplemental Inform at ion Courses : LEE C. JOHNSON. COMPANY e .. -. R e pr e s e nt at iv e C lie nt s Attorneys Rsaro and Kcagy Ashley, Erady and Cernigiia Enright, Levitt, Knutson and Tobin Gray, Cary, Ames and Frye I-Iervey, Rlitchell, Ashworth and Keeney I-liggs, Fletcher and XJack Hillyer and Irwin Ilolt, Raugh, Xlason and Jones Holt, Rhoades and Hollywood Jenkins and Perry Jennings, Engslrand and Henrjkson Linley, hlsc Dougal, Meloche and j\/lurphy Luce, Forward , Hamilton and Scripps Proccpio, Cory, Hargrcal-es and Savii ch Seltzer, Caplan, Vi?’ilkins and ;\IC L’llrihon Sheela, Lighiner, Hughes aid Casiro White, Price, Peterson and Ro5ivson LL Wooley, Crake, Collins and ?\‘ard Corporations A. J. Hall Corporation Cabbot, Cabboi and Foi-bes California IS’ater and Telephone Coldwell Banker 3Tanagement Corporstion C oiit in e 115 a1 C a s u alt y Cor po r at ion D r ogJ n C o 11s i. r LI ct ion C om pa ny Dun phy C ons t r u c t i on C 01 n pa ny Eastman Kodak Executrans Inc. Gulf Oil Company - U. S. Hornequity Inc. Honey w e 11 C o r p or a t ion IBM Corporation Insuraiice Company of North America Interstate Brands Inc, Jonathan Manor Inc. KFC Management Corporation Levitt West, Inc. NI a r s c o D eve 1 op m e nt Cor po r at ion nlrobil Oil Coinpany Pacific Plan Pacific Telcphone and Telegraph Prudent ia 1 Life Ins 111’ an c c Coin pa ny Rancho San Diego Relocation Realty Service Corporatj on San Diego Gas and Electric Servomat ion Corporation Shell Oil Company . Calgon Corpor; tion LEE C. JOHNSON. COMPANY Standard Oil Compan f Teacher Management Investment Fund Title Insurance 2nd Trust Company TI Home Transfer Corporation Tr ansame rica C or por at ion Union Oil Company United Enterprises Virest inghous e Corporation 0 .. *. Goverm e nt A ge ncies C alt rans City of El Centro City of Escondido City of Imperial Reach City of La Mesa City of National City City of San Diego County of Imperial County of San Diego Otay 14unicipal ll’ater District State of California, Dept. of General Scrvjce: Various school districts Veterans Administration * . Federal Housing Authority Le nd e r s A cacia Yutual Life Instlrance Conipaiiy Advance Mortgage A etna Life Insurance Company Bank of America Bank of California California Canadian Rank California First Bank Continental Mortgage Guarantee Mortgage Guild Mortgage Home Federal Savings and Loan Imperial Savings and Loan Investors hflortgage Insurance Company John Burnham and Company M GIC Peninsula Bank San Diego Federal Savings and Loan San Diego Trust and Savings Bank Security Pacific National Bank Security Savings and Loan Ticor Mortgage Union Bank United Caliiornia Mortgage Company Weyerhaeuser Mortgage Company LEE C. JOHNSON. COMPANY SOUTHERN CITIES ESCRO ** .i CARLSBAD OFFICE 800 AND WHEN RECORDED HAtL TO -7 0 I- V<07La Frances Bellinger Noms Marjorie Bellinger Henry Street 2400 S. Tremont Alhambra, CA 91803 Address -_I :!:p LI_ /0222g2 - # L 0 77-43 TITLE ifl$il3ANGC 84 TfUm 0 OC'T 2 0 @;go c M@b;t'e F3 b$rSW mz FILE~AGE NO-------- RECORDED RZQUEST OF BO3K 1977 OfFiCikL RECORD3 c;aN 41fGO couF(TY, CIUfj $1 t1 1 A. P. N. I This Deed of Trust, made this 26th day of September, 1977 92: CITY OF CARLSBAD, AN I~COWORATED ~~CIPALITY , herein called TP whose addressis TITLE INSURANCE AND TRUST COMPANY, a California corporation, herein caIled TRUSTE 1200 Elm Avenue, Carlsbad, CA 92008 (number and street) (city) (state) (zip) VIOLA FRANCES BELLINGER and MRJORIE BELLINGER HENRY as Joint Tenants , herein called BENEF that property in San Diego County, California, descr witness&: That Trustor IRREVOCABLY GRANTS, TRANSFERS AND ASSIGNS to TRUSTEE IN TRUST, WITH POWER 01 Lots 1 to 6 inclusive in Block "J" of Carlsbad, in the City of Carlsbad, County of San Diego, State of California, according to Nap thereof No, (0) lnQt any award ot donloy= (ti ~ wiecrion wirn any conaemnaiion rar PUDIIC Var "I "I ,,.,U., 1v Iu.u (."vF,,J ", ",,). rurr ,,,5rry, assigned und shall be paid to Beneficiar may apply or release such moneys received by hi the same manner and with the somt above provided far disposition of proceeds e ire or other insurance. (7) That by occepting payment of any sum secured hereby after its due date, Beneficiary does not waive his right either to requi payment when due of 011 other sums so secured or to declare default for failure sa to pay. (8) That at any time or from time to time, without liability therefor and without notice, upon written request of Beneficiary and presc this Deed and said note for endorsement, and without affecting the personal liability of any person for poyment of the indebtedness securt Trustee may: reconvey any part of soid property; consent to the making of any map or plat thereof; join in granting any eosement therec in any extension agreement or any agreement subordinating the lien or charge hereof. (9) That upon written request of Beneficiary stating that all sums secured hereby have been paid, and upon surrender of this Deed note to Trustee for cancellation and retention and upon payment of its fees, Trustee shall reconvey, without warranty, the property then 1 uz,&r. The lecita;s in such reconveyance of any matters or facts shall be conclusive proof of the truthfulness thereof. The grantee in such once may be described as "the person or persons legally entitled thereto." Five years after issuance of such full reconveyance, Trustee mc said nate and this Deed (unless directed in such request to retain them). (10) That as additional security, Trustor hereby gives to and confers upon Beneficiary the right, power and authority, during the canti these Trusls, to collect the rents, issues and profits of said property, reserving unto Trustor the right, prior to any default by Trustor in paym< indebtedness secured hereby or in perfarmonce of any agreement hereunder, to collect ond retain such rents, issues and profits as they bt and payable. Upon any such default, Beneficiary may at any time without notice, either in person, by agent, or by o receiver to be appoi court, and without regard to the adequocy of any security for the indebtedness hereby secured, enter upon and take possession of said p any part thereof, in his own name sue for or otherwise collect such rents, isFues and profits, including those past due ond unpaid, and appl) less casts and expenses of operation and collection, including reosonoble attorney's fees. upon any indebtedness secured hereby, and in su Beneficiary may determine. The entering upon and taking possession of said property, the collection of such rents, issues and profits and 11 tion thereof as aforesaid, shall not cure or waive any default or notice of default hereunder or involidote any act done pursuant to such notic (1 1 ) That upon default by Trustor in payment of any indebtedness secured hereby or in performance of any agreement hereunder, moy declare all sums secured hereby immediately due and payable by delivery to Trustee of written declaralian of default and demand fa of written notice of default and of election to cause to be sold said property, which notice Trustee shall cause to be filed for record. also shall deposit with Trustee this Deed, s6id nate and all documents evidencing expenditures secured hereby. After lhe iapse of such time os may iitan be required by 1uk fui!ow:ng !he recorlcticn of raid notice of default, and notice of sale h, given 05 then required by law, Trustee, without demand on Trustor, shall sell said property at the time and place fixed by it in said noti either as a whole or in separate parcels, and in such order as it may determine, at public auction to the highest bidder for cash in lawful the United States, payable at time of sale. Trustee may postpone sole of all or any portion of said property by public announcement at and place of sale, and from time to time thereafter may postpone such sale by public announcement at the time fixed by the preceding ment. Trustee shall deliver to such purchaser its deed conveying the property so sold, but without any cavenant or warranty, express < The recitals in such deed of any matters or focts shall be conclusive proof of the truthfulness thereof. Any person, including Trustor, . Beneficiary as hereinafter defined, may purchase at such sole. After deducting all costs, fees and expenses of Trustee and of this Trust, including cost of evidence of title in connection with sale, Tr opply the proceeds of sale to payment of: 011 sums expended under the terms hereof, not then repaid, with accrued interest at the amau by law in effect at the date hereof; all other sums then secured hereby; and the remainder, if any, to the person or persons legally entiit, successor or successors to any Trustee named herein or acting hereunder, which instrument, executed by the Beneficiary and duly acknowl recorded in the office of the recorder of the county or counties where said property is situated, shall be conclusive proof of proper tub such successor Trustee or Trustees, who shall, without conveyonce from the Trustee predecessor, succeed io oll its title, estate, rights, F duties. Soid instrument must contain the name of the original Trustor, Trustee and Beneficiary hereunder, the book ond page where ti recorded ond the name and address of the new Trustee. (13) That this Deed applies to, inures to the benefit of, and binds all parties hereto, their heirs, legatees, devisees, administratam successors and assigns. The term Beneficiary shall mean the owner and holder, including pledgees, of the note secured hereby, whether or OS Beneficiary herein. In this Deed, whenever the context SO requires, the masculine gender includes the feminine and/or neuter, and t number includes the plural. (14) That Trustee accepts this Trust when this Deed, duly executed and acknowledged, is made o public record as provided by low not obligated to notify any party hereto of pending sale under any other Deed of Trust or of ony action or proceeding in which Trustor, or Trustee shall be a party unless brought by Trustee. hereinbefore set forth. .J e (12) Beneficiary, or any successor in ownership of any indebtedness secured hereby, may from time to time, by instrument in writing, The undersigned Thstor requests that a copy of ,any Notice of Default and of any Notice of Sale h-*-..-i-- ' - 0 TO 449 c 802 (Corporation) STATE OF CALIFORNIA ) ss. Sari Die90 . COUNTY OF'---- befo e me the undersigned, a Notary public in and *Or said -, Marclaret E< Adams ' c i 2; y c l e r k s~r~~~ of the corporation that executed the within rnstrument' - September 309 1977 Robert E. Frazee +' 2 ::ti personally appeared Ma Or *&M& and ':: I w -,nown to me to be the = known kno~,n to tO me me to tO be be the persons wk executed the within Instrument on behalf of the corporation therein named'- and Y II acknowledged to me that such Corporation exec?ted the within I I 4 instrument pursuant to its by-laws Or a resolutlm Of Its board g of directors- g.d& WIT^^^^ my hand and Official sea" -) Signatur .I (Th,s arca for official notarial sea') l Sheila B. ~arvi~ ,t Name (Typed or printed) _________ Escrow or Loan No .___ _____________ - -- A .".-- -- DO NOT rPECOHD FOR RECONVEYANCE OR FORECLOSURE SEND TO THE NE OFFICE OF THE TlTLE INSURANCE AND TRUST COMPA I REQUEST FOR FULL RECONVEYANCE TO be used only when nate hos been paid. Dated /-/y- yp ~- e 0 mBm Southern cities Escrow Company P.O. Box 1151, (farlsbad, CA 92008 (714) 729 0978 rJ,r*rJ , Off ESCROW NO. 009 000735 7 , 19- August 2 2 CITY OF CARLSBAD For use in your escrow, we will appreciate you sending us, if they meet with your approval, the ite listed below marked by an “X”. Your prompt delivery of these items will materially assist in the c( pletion of your escrow. -.x Escrow Instructions SIGN AND RETURN ENCLOSED INSTRUCTIONS OR PAPERS FILL IN COMPLETELY, SIGN AND RETURN THESE PAPERS 1 SIGN AND ACKNOWLEDGE BEFORE A NOTARY PUBLIC EXACTLY THE WAY NAME APPEARS ON 1 __~ Statement of Information -- t DOCUMENTS, AND RETURN THEM TO US. Deed TRUST DEED (and Note) SEND TO US I - Fire Insurance Latest Tax Bill Money estimated as needed from you $ i Cashier Check payable to us Sincerely Bpry Hassen, Escrow Officer ___^ - - Self-Addressed Envelope Enclosed for your convenience. SCE 121 10M2-77 4 ad mce ....... ........ Escrow No.. . 0.135.. . Title Qrder No.. .. r 3. .come. Title Co.. ...... Title. Ins ... Date.. , .August. .19.,. .19.77 Carlsbad, CA 92008 729 0978 BUYER'S ESCROW INS'bWUCTIQNS 1. To: SOUTHERN ClTlES ESCROW COMPANY re. 4- instructions, and prior to close of escrow Paid outside of Escrow Encumbrances of Record $. New Encumbrances $ ................ $. ... .35 ,.QQO.*.Q! $ ................ PMI $. .. .8?,000:.0! $ ................ 8. 1 will hand YOU $1,000. OQ upon signing of escrow 5- 1 will deposit the additional sum of $34,000.00 7- deed in ............... 6. I will execute a purchase money flrst trust favor of seller as title in now held 8. for $83,000.00, FOR THE TOTAL CONSIDERATION OF 9s $118,000.00 10. and any ad&tional funds and instruments required from m to 11. use on or before October 19 , 1977or sooner/aFanzx 12. Joint Protection Policy of Title Insurance by Title Insurance and Trust Company 13. in its usual form, with a liability of $ 118, @OQ, 00 Sari Diego 14. State of California, described as follows: 15. Lots 29 3, 4, 5, and 6 of Block J, in the Town of Carlsbad, County of 16. Diego, STate of California, according to Map thereof No. 0775, filed i 17. the office of the County 'Recorder of San Diego County. 18. 19. 20. 21. Showing title vested in CITY OF CARLSBAD, an incorporated municipality 22. 23. Property Address (not verified): 2897 State Street, Carlsbad, CA 24. Free of encumbrance EXCEPT: 25. 26. 27. mentioned property. 28. 29. 30. (4) Purchase money deed of trust to record securing one note in favor of sellers 31. title is now held for $83,000.00 with intsrest to accrue from close of escrow at '32. rate of 9% Per annum, interest only payable on February 1, 1978, then principal 33. interest payable monthly thereafter commencing Pbrch 1, 1978 in installments of 34. $1,000.00 or more per month until paid in full. 35. QE NOTE AND TRUST DEED ARE TO CQNTAIN THE FOLLQWTNG RECITALS EL4NDED ESCROW HOLD 36. "BENEFICIARY WILL WATVE ALL INTEREST DUE IF PAID IN FULL PRIOR TO FEBRUARY 1, 19 37. "EIS FURTHER UNDERSTOOD THERE SHALL BE NO PAYMENT MADE ON THIS NOTE PRIOP, TO JA r 39. "IN THE EVENT OF SALE, ALIENATION OR CONVEYANCE OF ALL OR ANY PORTION OF THE PRC 40. DESCRIBED IN THE DEED OF TRUST, WETHER VOLUNTARY OR INVOLUNTARY AND IRRESPECTII 41. MATURITY DATES EXPPaSSED THEREIN, ANY INDEBTEDNESS OR OBLIGATION HEREUNDER, AT 1 42. OF THE HOLDER SHALL IMMEDIATELY BECOME DUE AND PAYABLE." 43. Escrow holder is not liable for the completeness, sufficiency or enforcibility c 44. foregoing recitals. Escrow holder is instructed to insert appropriate dates in 45. close of escrow. 46. 47. 48. 49. 50. 51. 62. 53. 64. 55. 56. 57. BUYER HAS INSPECTED AND APPROVED TERMS AND COhoITIQNS OF P.f2STER LEASE. SHOULD s 58. LEASE BE HANDED ESCROW, YOU ARE TO ASSIGN THE LEASE TO NEW BUYER. 59. 6o I he following PRORATES AND ADJUSTMENTS are to be made IX-I ~JIE escrow: (I) Prorate current taxes including all items appearing on tax bill, to date escrow c 61 62 based on the latest tax statement, unless you axe provided with bona fide information regarding amount of c-ent ta (2) Assme that insurance premiums are paid and transfer on behalf of partlid hereto any fire insurance P0liCie 63 64, Upon close of eScrOw request that insurer consent to such transfer or attach LOSS Payable or Mo&%ee's Clause Or Oth 65 66. 67. 68. hlortgage Insurance Premiums based on statements by Mortgagees Or holders Of no 69. not applicable 70. ~dj~~t impoun& to charge buyer and credit Se&% amoullt heid in &pound acc surance of title in the form of tl on real property in the county of (1) General and Special taxes for the fiscal year 19 7 7 19 78 inchding any special district levies, paymen1 are included therein and collected therewith, and the personal property tax, if any, assessed against any former owner (2) Assessments and Bonds, not delinquent, having an unpaid balance of $ (3) Easements, Rights of Wav. Conditiuns. Restrictions. & Reservations of Record, or in deed to file. none 38. 1978." and Escrow holder is authorized to furnish informdtion from this file to brokers as including but not limited to copies of these instructions and closing statement THIS SALE IS CONTINGENT UPON: (a) delivered into escrow no later than August 25, 1977. (b) Independent appriaser finding of valuation equal to or greater than $118,0 Escrow holder to be notified in writ,ing by buyer of satisfaction of this conting (c) by September 4, 1977. Buyer to deposit written approval or disapproval into esc the stated time limit. PLANNING COMMISSION finding of General Plan consistency, said find to be Buyers approval of the Covenants, Conditions and Restrictions on subject or corrections, and request that agent thereafter forward Such policies to Parties entitled thereto. Prorate not applicable (3) Interest on encumbrances of record and any funds shown impounded for future pa -- as per statemen (4) Prorateadvmmrent to date of close of escrow (5) Prorate interest on new encumbrances as per statement hatded YOU by lender- SG Page 1 el"= 77 Y 009 001 1 . Ehmw No ._._______________ ~ ________ I. mean the ddly papers are filed for record Make dk 2. by your check. Have fire insurance policies, including coverage, iP my, on personal property, assigned to buyer with mort 8. payable ehuse attached in favor of holder or holders of encumbrances, if my, as shown on page one hereof; and have E 4. mail& to holder of first encumbrance, if any, otherwise to buyer. Mail title policies to hold& of first encumbrance beL 6. concurrently herewith, if any, otherwise to buyer. Other documents ad ehecks in my favor to be mailed to my addrer 6. I agree to pay on demand usual buyer’s, charges including reco. .g deed, drawing any trust deed executed by I 7. and recording any other documents necessary on my part, and one-hall’ of Escrow Fee. 8. If the conditions of this escrow have not been complied with at the time provided herein you are neverthelesa to c 9. same as soon as the conditions (except as to tin;?e) have been complied with, unless a written demand for tfio return of m lo. instruments by a party to this escrow is received by you prior to the recording of any instrument provided for herein. T~I 11. declared to be of the essence hereof. In the event that this escrow shall not. be in a condition to be closed by the date 12. Line If, on Page One hereof. the party who then shall have fdly cornpi;% ;i with his instructions may, in writing, deman 13. d hia money and/or instruments. 14. 16. Should any controversy arise between the parties hereto, or with any third person, you shall not be liable to taki 16. of any kind but may withhold all moneys, securities, documenb or other things herein depsited until such controvr 17. determined by agreement of the parties, or by proper Iegai process. 1s. It is understood that the fees hereunder agreed to be paid for your services are for ordinary and usual servic 19. should there be any extraordinary ox unusual services rendered by you hereunder, fie undersigned agree to pay to yc 20. compensation for such extraordinary or unusual aervices, together with any costs and expenses which may be incurr 21. connection therewith; and you are hereby given a Lien upon ail documents, moneys arid securities herein deposited UI 22. been 80 compensated or reimbursed. It is understood that in event this Escrow is cancelled, you will receive compensa 23. servicea aa YQU have rendered in connection vvith this Escrow. 24. I agree that no notice, demand, or change of instructions shall be of any effect unless given in writing and appro\ 25. by all parties affected thereby. 26. Indicate on deed to file, all future tax statements are t~ be mailed to: 27. 28. You are authorized and instructed to utilize the services of a sub-escrow agent, within the scope of Section 17: 29. 30. 31. CITY OF CARLSBAD, an Incorpc 32. Buyer’s Municipality 33. .......................................................................................... Signature:. .......................................................................... 34. by : 35. ................................................................................. 36. 37. Addrtw: ...................................................................................... 3s. (Street and Number) 39. .................................................................................................... ,* Date. ---.-.-----__ -AuguL*19. Make pmmtions OR We 30-day month B6CIoee of escrow* buyer herein California Adminhtrative Me, as a depository for funds and/or documents prior to close of escrow, if necessary. . ._-_____. ........................................................................................................ ...................................................... l_.l._ ^._................ ...................................................... (Zip Code) 729 1181 40. (GtY) (State) 41. Telephone: .............................................................................................. Telephone. .............................................................................. 42. 43. SELLER‘S ESCROW lNSTRUCT!ONS 44. Date: ...............A klgwst .... 1.3, ... J 45. THE FORl3GOING ’FERMS, CONDITIONS AND/OR INYTRUCTIQNS ARE HEREBY CONCURFLED IN 46. AMD ACCEPTED. I will hand you all instmenh and money nwcessa~y for me to comply fierewith, bdudbg a dec 47. erty described, which you are authorized to record or deliver when you can comply with hem instructions. You are i 48. instructed to pay all encumbrances on said property, except tm set forth on page one hereof, from the prweed of “e 60. 61. 62. 53. 64. 65. 66. Pay documentary transfer tax in the amount of $ 129.80 from sellers proceeds 67. You wiIl send to me any promissory notes in my favor delivered to you, and as my agent, assign any fire and 1 68. of mine handed you or that Beneficiaries iniorm you they hold. I agree to pay usual Seller’s charges bicluding thoc 69. title insurance, one-half’ of escrow fee, drawing any deeds or other instrument executed by me or necea8ax-y on m: 60. stamps, recording any trust deed in my favor, assignmeats on insurance policies, and obtain Offset Statement: 61. Statements and/or Dew&. 62. Make check for balance payable to: undersigned 63. Said check to be mailed to undersigned 64. 65. Seller’s Seller’s 67. Viola F. Bellinger 68. .................................................................................................. ............................................................................... 69. 6036 Rainbow Heights Rd. 70. Address: ........................................................................... ____ ................... Address: .............................................................................. 71. (Street and Number) (Street and Number) ’ 72. Fallbrook, CA 92028 73. 75. 728 1971 76. Telephone: ......._.._. ......... -..-........... . ____._. ...... _.___ ............................... Pay commission in accordancew with separate written instructions. 66. Si~~re: ............................................................................................... Si~ture: ............................................................................ Marjorie H. Henry ---.-.-----____-_-_-___._____ _.____ -_____ __.___ - ._..__ -- .__. ...-......-... ............................ ................. .....- ......-.. ............ ---...- 74. (csty) (Stet4 WP We) (CiW (Stab) I. :.. - ..................................................................... 2 SCElM 3M4-76 Page .: B I) sutkern Gitiies Escrow Company R Carlsbad 9 Of ____ - ___ Escrow No.- 009 000735 ___ October 27, , 19-- Mr. Jack E. Henthorn 1200 Elm Ave. CITY OF CARLSBAD Carlsbad, CA 92008 Dear Mr. Henthorn: All documents in connection wiih your above numbered escrGw have been recorded and we are now position to make final escrow settlement: The items indicated below are enclosed herewith: ( ) Notefor$ ( ) Escrowstatement ( ) Checkfor$ (x ) TitlePolicy ( ) FirePolicywith ( ) Receiptfor Recorded documents to which you are entitied will be mailed to you by the County Recorder. Any c documents to which you are entitled will be sent you as SOOR as they are available. Fire Insurance Pol are usually held by the party holding the first encumbrance. Paid Notes and Trust Deeds are held b) Trustee. If you are eligible for California Veterans Tax Exemption, be certain to apply for your exemption each on or before April 15. Contact your local Tax Col!ector’s office for the necessary forms. It has been a pleasure to be of service to you, and we hope that you will call on us if we can be of fui assistance to you in the future. Sincerely, SOUTHERN CITIES ESCROW COMPANY --- By_--- MARY -__-_ R. HASSEN SCE120 10M3-77 >' * 1, pib- TITLE INSURANCE AND TRUST SUBJECT TO SCHEDULE B AND THE CONDITIONS AND STIPULATIONS HEREOF, TITLE INSURANCE AND TRUST COMPANY, a California corporation, herein called the Company, insures the insured, as of Date of Policy shown in Schedule A, against loss or damage, not exceeding the amount of insurance stated in Schedule A, and costs, attorneys' fees and expenses which the Company may become obligated to pay hereunder, sustained or incurred by said insured by reason of: 1. Title to the estate or interest described in Schedule A being vested other than as stated therein; 2. Any defect in or lien or encumbrance on such title; 3. Unmarketability of such title; or 4. Any lack of the ordinary right of an abutting owner for access to at least one physically open street or highway the land, in fact, abuts upon one or more such streets or highways; and in addition, as to an insured lender only; 5. Invalidity of the lien of the insured mortgage upon said estate or interest except to the extent that such invalidit! or claim thereof, arises out of the transaction evidenced by the insured mortgage and is based upon a. usury,or b. any consumer credit protection or truth in lending law; 6. Priority of any lien or encumbrance over the lien of the insured mortgage, said mortgage being shown in Schedule B in the order of its priority; or 7. Invalidity of any assignment of the insured mortgage, provided such assignment IS shown in Schedule B. Title Insurance nt $I TO 1012 TI-T (10-75) California Land Title Association Standard Coverage Policy-1 973 -0 'e CALIFORVIA LANE TITLE ASSOCIAYICk ST4NDPRC COVERAGE PCLICY - 1973 SCI4kOCIL-E A PULiCY NO. * LO23282 AMOUNT : $118rC00*00 CHARGE : $477.50 EFFECTIVE DATE: OCTOBER 209 1977 AT a:C3 A.4, 1. NAPE OF INSU?EC VIOLA FAANCES BELLINGER AND MARJCRIE RELLiNGfR iiENRY AND CITY Of CARLSEAOt AN INCCRPCRATEO MUhICIPACITY 2. THE ESTATE OR I&TEREST It\i TF€ LAND CESCRIBED HEREIN AND XHfCH IS COVERED BY THIS PCLICY IS A FEE, 3. THE ESTATE CR INTEREST REFERRED TG HEREIN IS AT DATE Of PCLZCY VESTED IN: CITY OF CARLSEA09 AN INCGRPCRATEO i4UNICIPAtITY SCHECUL-E B THIS PULICY CUE5 NOT INSURE AGAIhST 1GSS CS OAMAGE, PoCR AGAfNST COSTS, ATTORNEY'S FEES DR EXPENSES1 4NY GR ALL OF WHICH ARISE BY REASCN CF THE FOLLOWING, PART I ALL MATTERS SET FCRTH IN PARAGRAPHS h'UMaEREi) 1 {CINE) TG 11 IEL€VEN$ XWLUSIVE ON THE INSIUf COVER ShEET OF fbIS POLICY UNDER THE HEADING OF SCHEDUCE B PART I, PART I1 I, GEKERAL AND SPECIAL COUNTY AAC CITY TAXES FOR TkE FISCAL YEAR : 1977-78 A lIEN NOT YET PAYABLE. 2, A OEED CF TRUST TO SECURE AN INDE3TECNESS Of THE AMOUNT STATED HEfiEfN DATED : SEPTEYBER 26, 1477 AMOUNT : $83,000-00 TRUSTOR : CITY Of CARFSSAd, AN INCCRP'JRATEU MUNICIPALITY TRUSTEE : TITlE fNSURANCf PRC TRUST CUYPANY. A CALIFORNIA CORPCRATION JOINT TEN4NTS 1023232 PAGE 1 BENEFICIARY : VIOLA FRANCES BEFLINGER AND YAilJCzIE 8EtLflUGER HENR' -- e 1) R ECCR 0 ED : OCTOBER 20, 1977 RECCR3ER'S FILE NO* 77-43LILS 1023282 PAG€ 2 0 '0 SCHECULE C THE LAND REFERRED TO IN THIS POLICY IS SlTUllTED IN THE STAT€ CF CALIFORNIA, COUNTY OF SAN DiEGC, AND IS IlESCRX3ED AS FGLLOdS: LOTS 1 TO 6 INCLUSIVE IN BLUCK "Jn OF CARLSt3401 IN it;€ CITY CF CbRLSBAOt IN THE COURTY Cf S4N DIEGO, STATE OF CALIFURhIA, ACCOaOiNG MAP THEREOF NOS 5351 FILED IN THE OFFICE CF COUNTY RECORDER CF SAN 02 COUNTY, MAY 21 1838- 6 1023282 PAGE 3 ,I '0 *e This is not a survey of the land, but is compiled for information only, nor is it a part of the report or policy to which , it may be attached. / TITLE INSURANCE AND TRUST 2 20 "A" Street San Diego, California, 92101 I e.. j/** mu OFCAR SCAL€ \"=200' \ -4 'e *. -- *' e.- (CONDITIONS AND STIPULATIONS Continued From Reverse Side of Policy Face) 2. (a.) Continuation of Insurance after Acquisition of Title by Insured Lender If this policy insures the owner of the indebtedness secured by the insured mortgage, this policy shall continue in force as of Date of Policy in favor of such insured who acquires all or any part of said estate or interest in the land described in Schedule C by foreclosure, trustee's sale, conveyance in lieu of foreclosure, or other legal man- ner which discharges the lien of the insured mortgage, and if such insured is a corporation, its transferee of the estate or interest so acquired, provided the transferee is the parent or wholly owned subsidiary of such insured; and in favor of any governmental agency or instrumentality which acquires all or any part of the estate or interest pursuant to a contract of insurance or guaranty insuring or guaranteeing the indebtedness secured by the insured mortgage. After any such acquisition the amount of insurance hereunder, exclusive of costs, attorneys' fees and expenses which the Company may be obligated to pay, shall not exceed the least of: (i) the amount of insurance stated in Schedule A; (ii) the amount of the unpaid principal of the indebtedness plus interest thereon, as determined under paragraph 6(a) (iii) hereof, expenses of foreclosure and amounts advanced to protect the lien of the insured mortgage and secured by said insured mortgage at the time of acquisition of such estate or interest in the land; or (iii) the amount paid by any governmental agency or instrumentality, if such agency or instrumentality is the insured claimant, in acquisition of such estate or interest in satisfaction of its insurance contract or guaranty. (b.) Continuation of Insurance After Conveyance of Title The coverage of this policy shall continue in force as of Date of Policy, in favor of an insured so long as such insured retains an estate or interest in the land, or owns an indebtedness secured by a purchase money mortgage given by a purchaser from such insured, or so long as such insured shall have liability by reason of covenants of warranty made by such insured in any transfer or conveyance of such estate or interest; provided, however, this policy shall not continue in force in favor of any purchaser from such insured of either said estate or interest or the indebtedness secured by a purchase money mortgage given to such insured. 3. Defense and Prosecution of Actions - Notice of Claini to be Given by an Insured Claimant (a,) The Company, at its own cost and without undue delay, shall provide for the defense of an insured in litigation to the extent that such litigation involves an alleged defect, lien, encumbrance or other matter insured against by this policy. (b.) The insured shall notify the Company promptly in writing (i) in case of any litigation as set forth in (a) above, (ii) in case knowledge shall come to an insured hereunder of any claim of title or interest which is adverse to the title to the estate or interest or the lien of the insured mortgage, as insured, and which might cause loss or damage for which the Company may be liable by virtue of this policy, or (iii) if title to the estate or interest or the lien of the insured mortgage, as insured, is rejected as unmarketable. If such prompt notice shall not be given to the Company, then as to such insured all liability of the Company shall cease and terminate in regard to the matter or matters for which such prompt notice is required; provided, however, that failure to notify shall in no case prejudice the rights of any such insured under this policy unless the Company shall be prejudiced by such failure and then only 'to the extent of such prejudice. (c.) The Company shall have the right at its own cost to institute and without undue delay prosecute any action or proceeding or to do any other act which in its opinion may be necessary or desirable to establish the title to the estate or interest or the lien of the insured mortgage, as insured; and the Company may take any appro- priate action, whether or not it shall be liable under the terms of this policy, and shall not thereby concede liability or waive any provision of this policy. (d.) Whenever the Company shall have brought any action or inter- posed a defense as required or permitted by the provisions of this policy, the Company may pursue any such litigation to final deter- mination by a court of competent jurisdiction and expressly reserves the right, in its sole discretion, to appeal from any adverse judgment or order. (e.) In all cases where this policy permits or requires the Company to prosecute or provide for the defense of any action or proceeding, the insured hereunder shall secure to the Company the right to so prosecute or provide defense in such action or proceeding, and all appeals therein, and permit the Company to use, at its option, the name of such insured for such purpose. Whenever requested by the Company, such insured shall give the Company, at the Company's expense, all reasonable aid (1) in any such action or proceeding in effecting settlement, securing evidence, obtaining witnesses, or pros- (CONDITIONS AND STIPULATIONS Continued and Concluded on Reverse Side of This Page) ecuting or defending such action or proceeding, and (2) in an! other act which in the opinion of the Company may be necessc desirable to establish the title to the estate or interest or the lie the insured mortgage, as insured, including but not limited to executing corrective or other documents. 4. Proof of Loss or Damage - Limitation of Action In addition to the notices required under Paragraph 3(b) of the Conditions and Stipulations, a proof of loss or damage, signed sworn to by the insured claimant shall be furnished to the Com within 90 days after the insured claimant shall ascertain or deti mine the facts giving rise to such loss or damage. Such proof ( or damage shall describe the defect in, or lien or encumbrancc the title, or other matter insured against by this policy which cc stitutes the basis of loss or damage, and, when appropriate, st' basis of calculating the amount of such loss or damage. Should such proof of loss or damage fail to state facts sufficier enable the Company to determine its liability hereunder, insun claimant, at the written request of the Company, shall furnish s additional information as may reasonably be necessary to mal determination. No right of action shall accrue to insured claimant until 30 day after such proof of loss or damage shall have been furnished. Failure tqfurnish such proof of loss or damage shall terminate liability of the Company under this policy as to such loss or dai 5. Options to Pay or Otherwise Settle Claims and Options 11 Purchase Indebtedness The Company shall have the option to pay or otherwise settle f in the name of an insured claimant any claim insured against, I terminate all liability and obligations of the Company hereundc paying or tendering payment of the amount of insurance undet policy together with any costs, attorneys' fees and expenses incurred up to the time of such payment or tender of payment I the insured claimant and authorized by the Company. In case damage is claimed under this policy by the owner of the indeb ness secured by the insured mortgage, the Company shall ha\ further option to purchase such indebtedness for the amount c thereon together with all costs, attorneys' fees and expenses H the Company is obligated hereunder to pay. If the Company of to purchase said indebtedness as herein provided, the owner ( indebtedness shall transfer and assign said indebtedness and mortgage and any callateral securing the same to the Compan payment therefor as herein provided. Upon such offer being m by the Company, all liability and obligations of the Company hc under to the owner of the indebtedness secured by said insure mortgage, other than the obligation to purchase said indebted1 pursuant to this paragraph, are terminated. 6. Determination and Payment of Loss (a,) The liability of the Company under this policy shall in no Ci exceed the least of: (i) the actual loss of the insured claimant; or (ii) the amount of insurance stated in Schedule A, or, if applica: the amount of insurance as defined in paragraph 2(a) hereof; ( (iii) if this policy insures the owner of the indebtedness secure' the insured mortgage, and provided said owner is the insured ( ant, the amount of the unpaid principal of said indebtedness, F interest thereon, provided such amount shall not include any a tional principal indebtedness created subsequent to Date of PC except as to amounts advanced to protect the lien of the insure mortgage and secured thereby. (b.) The Company will pay, in addition to any loss insured agai by this policy, all costs imposed upon an insured in litigation c on by the Company for such insured, and all costs, attorneys' f and expenses in litigation carried on by such insured with the written authorization of the Company. (c.) When the amount of loss or damage has been definitelyfix accordance with the conditions of this policy, the loss or dama shall be payable within 30 days thereafter. 7. Limitation of Liability No claim shall arise or be maintainable under this policy (a) if I Company, after having received notice of an alleged defect, lie encumbrance insured against hereunder, by litigation or other removes such defect, lien or encumbrance or establishes the t the lien of the insured mortgage, as insured, within a reasonab time after receipt of such notice: (b) in the event of litigation ur there has been a final determination by a court of competent ju diction, and disposition of all appeals therefrom, adverse to the or to the lien of the insured mortgage, as insured, as provided i paragraph 3 hereof: or (c) for liability voluntarily admitted or assumed by an insured without prior written consent of the Cor .