HomeMy WebLinkAbout2006-07-11; City Council; 18634; First American Title Co Dispute SettlementCITY OF CARLSBAD - AGENDA BILL
AB#
MTG.
DEPT.
18,634
7/11/06
CA
Title
REPORTING OUT THE TERMS AND
CONDITIONS OF THE SETTLEMENT AS
REQUIRED BY THE BROWN ACT IN
FIRST AMERICAN TITLE CO. DISPUTE
DEPT. HEAD
CITY ATTY.
CITY MGR.
RECOMMENDED ACTION:
There is no action the Council needs to take.
ITEM EXPLANATION:
Ms. Haylings purchased the property located at 1305 Verbena Court in 1999 for approximately
$146,000 from Cherry Tree Walk, LLC, as part of the For-Sale Affordable Income Housing
Program. In connection with that purchase, she executed notes and deeds of trust promising to
repay the City the financial assistance she was provided and to pay contingent interest if she
sold the property before the expiration of the specified holding period to a non-qualified
purchaser.
Ms. Haylings sold the property in 2005 but did not pay approximately $100,000 at that time due
and owing to the City. A portion of that loss was due to the inadvertence of First American Title
Company in paying off the loans. The City has received $82,300 from First American Title
Company which makes the City whole. This settlement closes the City's action against First
American.
FISCAL IMPACT:
The City received a check in the amount of $82,300 from First American Title Company.
EXHIBITS:
1 .Substitution of Trustee and Full Reconveyance
DEPARTMENT CONTACT: Ronald R. Ball, (760) 434-2891
FOR CITY CLERKS USE ONLY.
COUNCIL ACTION: APPROVED
DENIED
CONTINUED
WITHDRAWN
AMENDED
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CONTINUED TO DATE SPECIFIC
CONTINUED TO DATE UNKNOWN
RETURNED TO STAFF
OTHER -SEE MINUTES
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RECORDING REQUESTED BY:
First American Title Insurance Company
411 Ivy Street
San Diego, CA 92101
AND WHEN RECORDED MAIL TO:
William L. Miltner, Esq.
Perkins & Miltner, LLP
750 B Street, Suite 2800
San Diego, CA 92101
SPACE ABOVE THIS LINE FOR RECORDER'S USE
SUBSTITUTION OF TRUSTEE AND FULL RECONVEYANCE
The undersigned, THE CITY OF CARLSBAD, as owner and holder of the Note secured by Deed of
Trust dated June 18, 1999 made by Melissa Jean Haylings, Trustor, to THE CITY OF
CARLSBAD, Beneficiary, which Deed of Trust was recorded on July 1, 1999, as Document No.
1999-0461009 of Official Records, San Diego County, California, hereby substitutes FIRST
AMERICAN TITLE COMPANY as Trustee in lieu of the Trustee therein. Said Note, together
with all other indebtedness secured by said Deed of Trust, has been fully paid and satisfied; and
as successor Trustee, the undersigned does hereby RECONVEY WITHOUT WARRANTY, TO
THE PERSON OR PERSONS LEGALLY ENTITLED THERETO, all of the estate now held by
it under said Deed of Trust.
Dated:
RAYMOND H. PATCHETT
ACKNOWLEDGMENT (All Purpose):
State of
County o£
, before me, theundersigned, a Notary Public in and for said
R. flfr?Zi/f&7r~ , personally known to me
/
On this offi day of
State, personally appeared
OR-provod to me on-the basis of satisfactory evidence to be the person(*) whose name!*) is/ace,
subscribed to the within instrument and acknowledged to me that he/shif/they executed the same in
his/hef/tiwir authorized capacity(ies), and that by his/hor/thoir signature^ on the instrument the
person(«}, or the entity upon behalf of which the person^s) acted, executed the instrument.
Notarial Seal
WITNESS MY HAND AND OFFICIAL
SEAL