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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 COUNCIL ACTION: APPROVED DENIED CONTINUED WITHDRAWN AMENDED *"D D D D CONTINUED TO DATE SPECIFIC CONTINUED TO DATE UNKNOWN RETURNED TO STAFF OTHER -SEE MINUTES D D D D RECORDING REQUESTED BY: First American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