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HomeMy WebLinkAbout1997-11-18; Housing & Redevelopment Commission; 292; Acquisition of Property 2787 State StreetiB# a?& TITLE- -- - @j!zzx3ti HOUSING i:D REDEVELOPMENT COMMISSION -A JITG. 1 l/18/97 IEPT. H/RED I ACQUISITION OF PROPERTY 2787 STATE STREET DEPT. HD. CITYATTY.@. CINMGR. s RECOMMENDED ACTION: ADOPT Housing and Redevelopment Commission Resolution No. , authorizing the City Clerk to execute the Certificate of Acceptance of the Deed for the purchase of property at 2787 State Street by the Carlsbad Redevelopment Agency for the purposes of property redevelopment, area revitalization and blight elimination. ITEM EXPLANATION: The property at 2787 State Street was offered to the Carlsbad Redevelopment Agency for purchase by the current owners. After a comprehensive review of the benefits related to Agency ownership of the subject property, staff recommended acquisition of the property and the Commission previously authorized negotiations to purchase the site. City staff and representatives of the land owner prepared and executed the attached escrow instructions, and are now prepared to close the transaction through final recordation of the Deed. With approval of a finding by the Housing and Redevelopment Commission that the acquisition is consistent with the goals and objectives of the Village Master Plan and Design Manual, Village Redevelopment Plan and the General Plan, and will ultimately result in the elimination of blight or a blighting influence within the Village, the Agency will be able to complete the purchase transaction and assume ownership of the subject property. Staff is recommending that the Housing and Redevelopment Commission make the appropriate findings and authorize the City Clerk to execute the Certification for Acceptance of the Deed and to place the property into the Redevelopment Agency inventory. Consistency with the Goals and Objectives of the Wane Master Plan and Des&n Manual. The Village Master Plan and Design Manual indicates that “catalyst” projects are very important to effect significant change within an area identified for redevelopment or revitalization. North State Street, and more specifically the area around the Village Commuter Rail Station, is considered to be an area which needs focused attention by both the private and public sector. The subject site represents a key location in the assemblage of property for a transit-oriented retail center to be developed at some later date, or for other revitalization activities. The Carlsbad Redevelopment Agency’s 79952000 implementation Strafegy includes a goal to purchase property to use as an incentive for a developer to construct desired housing and/or commercial projects within the Village. Funding for these property acquisitions has been provided through the refinancing of the tax increment bonds. Consistencv with Villaqe Redevelopment Plan: The primary goal for the Redevelopment Project Area is to “create a pleasant, attractive, accessible environment for living, shopping, recreation, civic, cultural and service functions through the elimination of blighting influences and through restoration and new, private/public development which preserve and enhance the existing character of the Village Area and surrounding community. “ The main objective of any Redevelopment Project Area is to eliminate blight and blighting influences that presently exist in the project area. I AB# ~292. Page 2 The purchase of the subject property will assist the Redevelopment Agency to meet the Project Area Goal noted above as well as meet the primary redevelopment objective of eliminating blight. The Agency intends to ultimately lease or sell the subject property to a private developer for construction of a new commercial/retail development, or other development project which will revitalize the area. The subject site does not meet current standards for new development. There are inadequate setbacks, no landscaping/open space and no on-site parking. This condition of blight can be resolved through new development, which combines this property with other properties within the area, and results in the construction of additional parking. The design of the existing building is also not consistent with the current design guidelines which have been developed to create a more visually appealing Village area with a pedestrian-oriented atmosphere. New development will also resolve this condition of blight. General Plan Consistency: The City’s General Plan includes a Goal for the Village Redevelopment Area which states that the City “encourages new economic development in the Village and near transportation corridors to attract additional tourist-oriented uses and to also retain and increase resident-serving uses.” The objective for the Village as set forth in the General Plan is “to implement the Redevelopment Plan by developing a comprehensive plan to address the unique residential and commercial needs of this segment of the community.” Purchase of the subject property is consistent with the General Plan because the long range plan for the property will result in new economic development near the existing Commuter Rail Station. Also, the proposed development is consistent with the goals and objectives (comprehensive plan) for the Village Area as outlined in the Village Master Plan and Design Manual. Environmental Review: The action to acquire the subject property is exempt from environmental review under CEQA. Initially, the acquisition will result in a continuation of an existing facility involving no expansion of use and is therefore exempt from environmental review pursuant to Section 15301 of the State CEQA Guidelines. However, any new (construction) development proposed for the site, or any change in use, will require separate environmental review under CEQA at a later date. FISCAL IMPACT: The negotiated price for the property is $497,500. With taxes, escrow fees and recording fee, the total cost of the acquisition is $498,943.60 The property is being purchased under no threat of condemnation. Funding is available from Tax Increment Bond Proceeds received in 1993. As a result of the bond refinancing action which occurred in 1993, the Redevelopment Agency received approximately $2.5 million in additional bond proceeds to expend on eligible housing and redevelopment projects. A total of $1.4 million of these proceeds was allocated for activities related to the development of two new commercial projects within the Village. There is adequate funding within the Bond Proceeds account to allow for the purchase of the subject property at the above noted cost. The subject funds have been placed into escrow and will be released to the seller upon execution of the Certificate of Acceptance for the Deed by the City Clerk. Upon close of escrow, the Redevelopment Agency will take action to immediately mitigate an existing asbestos hazard within the ceiling of the building. Based on contract bids, the cost to completely remove the asbestos within the ceiling is $8400. Funding is available within the bond proceeds account to cover the cost of the asbestos removal. AB# 2% - Page 3 Any new development on the site will result in additional sales tax and property tax revenue for the City of Carlsbad and the Redevelopment Agency. Also, it is anticipated that new commercial development will result in increased jobs and the stimulation of other economic activity, and blight elimination, within the area. EXHIBITS: 1. 2. Housing and Redevelopment Commission Resolution No. LLi3&2-, approving purchase of the subject property with the appropriate findings, and authorizing the City Clerk to execute the Certification of Acceptance of the Deed. Escrow Documents and Purchase Agreement (on file in the City Clerk’s Office). 3 8 9 10 11 I2 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 HOUSING AND REDEVELOPMENT COMMISSION RESOLUTION NO. 289 A RESOLUTION OF THE HOUSING AND REDEVELOPMENT COMMISSION OF THE CITY OF CARLSBAD, CALIFORNIA, APPROVING ACQUISITION OF PROPERTY AT 2787 STATE STREET WITHIN THE VILLAGE REDEVELOPMENT AREA, FOR THE PURPOSE OF REDEVELOPMENT AND REVITALIZATION THROUGH THE ELIMINATION OF BLIGHT AND/OR BLIGHTING INFLUENCES. WHEREAS, the Carlsbad Redevelopment Agency has completed negotiations with the current property owners to acquire the property at 2787 State Street, within the Village Redevelopment Area, under no threat of condemnation and at a fair market value; and WHEREAS, based on the facts presented to the Commission, the Commission has determined that the acquisition of the subject property is consistent with the goals and objectives set forth within the Carlsbad Village Redevelopment Plan, the Village Master Plan and Design Manual, the 19952000 Village Redevelopment Area Implementation Plan and the City of Carlsbad’s General Plan; and WHEREAS, the acquisition of the subject property and subsequent redevelopment of the site shall result in the elimination of a blighting influence through new commercial development on the subject site and is therefore consistent with the Community Redevelopment Law as related to expenditure of Redevelopment Tax Increment Funds for activities which eliminate blight; and WHEREAS, the acquisition of the property is exempt from the provisions of the California Environmental Quality Act. NOW, THEREFORE, BE IT HEREBY RESOLVED by the Housing and Redevelopment Commission of the City of Carlsbad, California as follows: 1. The above recitations are true and correct. 2. The Housing and Redevelopment Commission previously authorized staff to enter into negotiations and to purchase property located at 2787 State Street within the Village Redevelopment Area for the purposes of redevelopment and revitalization, through the elimination of blight and/or a blighting influence within the area. 3. The Housing and Redevelopment Commission hereby ACCEPTS AND APPROVES the escrow instructions and purchase agreement for the property at 2787 State Street. 4 1 5 4. The Housing and Redevelopment Commission of the City of Carlsbad hereby accepts the grant deed for the subject property, and authorizes the City Clerk to execute the Certificate of Acceptance and to place the property into the Redevelopment Agency inventory. 6 PASSED, APPROVED AND ADOPTED at a regular meeting of the Housing 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 HRC Resolution No. 289 Page 2 and Redevelopment Commission of the City of Carlsbad, California held on the 18th day of November > 1997, by the following vote to wit: AYES: Commissioners Lewis, Finnila, Nygaard and Kulchin NOES: Commissioner Hall ABSENT: None ABSTAIN: None (SEAL) 5 . . . :’ .: )I : ; ! .a First American Title Insurance Company 411 IVY STREET l SAN DIEGO, CALIFORNIA 92101 l (619) 238-l 776 AMENDED ESCROW INSTRUCTIONS NO.2 THIS AMENDED ESCROW INSTRUCTION CANCELS AND SUPERCEDES THAT AMENDED ESCROW INSTRUCTION NO. 1 DATED AUGUST 26. 1997 IN ITS ENTIRETY. Escrow No: 97-3991AS Date: October 23, 1997 Re: 2787 State Street Escrow Officer: Carlsbad, CA ANGELIQUE R. SIZEMORE TO: FIRST AMERICAN TJITLE INSURANCE COMPANY My previous instructions in the above numbered escrow are hereby amended and/or supplemented in the following particulars only: IT IS UNDERSTOOD AND APPROVED BY AND BETWEEN THE UNDERSIGNED: A. All terms and conditions of this escrow have been satisfied or waived by the respective principals and, providing all necessary documentation and funds have been deposited into escrow, Escrow Holder is instructed to proceed with the closing of this escrow. B. The original purchase price of $500,000.00 is hereby reduced to $497.500.00 for subject property. Otherwise, the original escrow instructions and amendments thereto, as amended herein, are to remain in full force and effect. SELLER(S): DOROTHY ANN ROSS RICHARD BAUER BUYER(S): EVELOPMENT AGENCY ‘By: First American Title Insurance Company 411 IW STREET l SAN DIEGO, CALIFORNIA 92101 l (619) 238-l 776 ASSIGNMENT OF SELLER INTEREST INSTRUCTIONS THIS ASSIGNMENT OF SELLER’S INTEREST INSTRUCTION CANCELS AND SUPERCEDES THAT ASSIGNMENT OF SELLER’S INTEREST INSTRUCTION DATED OCTOBER 1, 1997 IN ITS ENTIRETY. Escrow No:97-3991AS RE: 2787 State Street Carlsbad, CA Date: October 23, 1997 I/We DOROTHY ANN ROSS and RICHARD BAUER and WELLS FARGO BANE formerly known as Cracker National Bank, Co-Trustees under Trust Agreement dated October 27, 1976, the undersigned Seller(s) do hereby assign to DOROTHY ANN ROSS, a married woman as her sole and separate property as to an undivided 50% interest and RICHARD BAUER, a married man, as his sole and separate property as to an undivided 50% interest 1. All interest in and to, and all right to convey title to the property which is the subject of this escrow. 2. All funds now on deposit to the account of the undersigned Seller in this escrow. No consideration is to be paid to the undersigned Seller through this escrow for or on account of this assignment. SELLER(S): WELLS FARGO BANK formally known as THE CROWER NATIONAL BANK, Co-trustee under Trust Agreement dated October 27, 1976 DOROTHY ANN ROSS and RICHARD BAUER, Co-Trustees under Trust Agreement dated October 27, 1976 Dorothy Ann Ross, Co-Trustee Richard Bauer, Co-Trustee I/we the undersigned Assignee(s), hereby accept this Assignment as noted above and acknowledge to Escrow Holder that we have received, read and understand the original Escrow Instructions dated August 5, 1997, and any Amendments thereto, and agree to comply with all the terms and conditions set forth herein. ASSIGNEE(S): Richard Bauer Dorothy Arm Ross ASSIGNMENT OF SELLER INTEREST INSTRUCTION (continued) COPY - The undersigned Buyer(s) hereby acknowledge the above assignment and new Seller. 7 : BVYER(S): CARLSBAD REDEVELOPMENT AGENCY B Community Dev. Director 8 Escrow No. 97-3991AS I Estimated Close Date: October 29, 1997 Reference: 2787 State Street Report Print Date: October 23, 1997 Carlsbad, CA Page 1 Bu er ESTIMATED Cl?OSING STATEMENT BUYER: CARLSBAD REDEVELOPMENT AGENCY 2965 Roosevelt Street, Ste B Carlsbad, CA Consideration: Total Consideration Prorations: County Taxes at $ 206.13 per 6 months From 10/29/97 to 01/01/98 County Taxes at $ 493.85 per 6 months From 10/29/97 to 01/01/98 Title Charges: Record Grant Deed Record Quitclaim Deed Escrow Fees: Escrow Fee8 MISC/PAD/REFUND - - DEBITS - - - - CREDITS - - 497,500.oo 71.00 170.10 Balance Due Eacrow 498,943.60 Totals $ 498,943.60 $ 498,943.60 This estimated closing statement is subject to changes, corrections or additions at closing. CASHIERS CHECKS MUST be payable to First American Title. WIRE INFO: UNION BANE OF CALIF., 530 B St., San Diego,Ca. Acct#4000-135-084/ABA#l22000496 AUG-26-97 10:25 FROM:FIRST AMERICAN TITLE ID:6192314696 PAGE 2/3 First American Title Insurance Company 411 IVY STREET l SAN DIEGO, CALIFORNIA 92101 l (619) 238-l 776 AMENDED ESCROW INSTRUCTIONS NO.1 Escrow No: 97-3991AS Date: August 26, 1997 Re: 2787 State Street Escrow Officer: Carlsbad, CA ANGELIQUE R. SIZEMORE TO: FIRST AMERICAN TITLE mSURANCE COMPANY My previous instructions in the above numbered escrow are hereby amended and/or supplemented in the following particulars only: . A. Buyer and Seller acknowledge and approve that Paragraph 1C of the original Escrow Instructions dated August 5, 1997 is hereby amended to read as follows: Buyer is to review and approve all inspections, investigations (including the geological inspections), engineering, buiiding code inspections, zoning land use and feasibility for intended use, and all applicable documents and/or applicable information effecting subject property on or before August 29, 1997. Unless Escrow Holder has received written disapproval from Buyer on or before said date, Escrow Holder is authorized and instructed to deem this contingency as satisfied by the Buyer. B. With respect to Paragraph 1B of the original Escrow Instructions dated August 5 1997, Buyer has DISAPPROVED of the Environmental Survey for subject property. Escrow Holder will be handed further written instructions regarding the disposition of this escrow. Otherwise, the original escroiv instructions and amendments thereto, as amended herein, are to remain in full force and effect. Continued on Page 2 AUG-26-97 10:26 FROM:FIRST AMERICAN TITLE ID:6192314696 PAGE 3/3 First ‘American Title Insurance Co. Date : August 26,1997 Escrow No. : 97-3991AS SELLER(S) : BUYER(S): DOROTHY ANN ROSS and RICHARD BAUER, Co-trustees under Trust Agreement dated October 27, 1976 By: Richard Bauer, Co-trustee By: CoItUnUnity Development Director By: Dorothy AN Ross, Co-trustee WELLS FARGO BANK formally known as THE CROCKER NATIONAL BANK, Co-trustee under Trust Agreement dated October 27, 1976 By: *I * RICHARD BAUER DOROTHY ANN ROSS Page 2 ST AMEn, ,+ c * 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 First American Title Insurance Company 411 IVY STREET + SAN DIEGO, CALIFORNIA 92101 + (619) 238-1776 FIRST AMERICAN TITLE INSURANCE COMPANY CONDUCTS ESCROW BUSINESS UNDER CERTIFICATE OF AUTHORITY NO. 2787 ISSUED BY THE STATE OF CALIFORNIA DEPARTMENT OF INSURANCE. SALE ESCROW INSTRUCTIONS Subject Property: Date: August 5, 1997 2787. State Street Escrow Officer: ANGELIQUE R. SIZEMORE Carlsbad, CA Escrow Number: 97-3991AS TO: FIRST AMERICAN TITLE INSURANCE CO., hereinafter kndwn as “Escrow Holder” located at: 411 Ivy Street, San Diego, CA 92101 Terms of Transaction To effect the purchase of property hereinafter described, Buyer will pay total consideration as follows: Buyer will deposit into escrow prior to closing $ 500,000.00 TO COMPLETE THE TOTAL CONSIDERATION OF $ 500,000.00 all of which you may use when you hold for me a Grant Deed executed by DOROTHY ANN ROSS, RICHARD BAUER and THE CROCKER NATIONAL BANK, Co-trustees under Trust Agreement dated October 27, 1976, as to an undivided 3/4 interest; RICHARD BAUER, a married man as his sole and separate property as to an undivided l/S interest; DOROTHY ANN ROSS, a married woman as her sole and separate property as to an undivided l/8 interest and Buyer will deliver to you any instruments and funds required from Buyer to comply with these instructions, all of which you are authorized to use or deliver on or before September 29, 1997 (“Close of Escrow’!) provided instruments have been filed for record enabling you td obtain an ALTA/WRE (&th Western Regional Exceptions) policy of title insurance with title company’s exceptions, having a liability of at least the amount of the total consideration, covering the property in the County of San Diego, State of California, described as follows: LOTS 1 THROUGH 4 INCLUSIVE, BLOCK “K” OF CARLSBAD, IN THE CITY OF CARLSBAD, COUNTY OF SAN DIEGO, $TATE OF CALIFORNIA, ACCORDING TO MAP THEREOF NO. 535 FILED IN THE OFFfCE OF TH-E COUNTY RECORDER OF SAN DIEGO COUNTY, MAY 2,1888. SHOWING THE FEE TITLE IN SAID LAND VESTED IN: CARLSBAD REDEVELOI’MENT AGENCY FREE FROM ENCUMBRANCES EXCEPT ONLY THE ITEMS NUMBERED BELOW: (1) Any general and special taxes, including any special levies, payments for which are included therein and collected therewith, for the current fiscal year, not delinquent, and taxes for the ensuing year, if any, a lien but not yet payable. (2) Bond-assessment: NONE-EXCEPT AS PAID THROUGH THE PROPERTY TAXES OR AS SPECIFICALLY APPROVED BY THE BUYER. (3) All taxes, bonds and assessments levied or assessed subsequent to date of closing, including any supplemental assessments. (4) Covenants, conditions, restrictions, rights of way, easements and reservations, as described in that certain Preliminary Title Report, issued, or to be issued herein. ADDITIONAL INSTRUCTIONS ATTACIIED HERETO AND MADE A PART IIEREOF My initials below represent my agretnc t and acknowltdgnrerrt of fhe jortgoing. Seller Initials: ------ & Buyer Initials* Page 1 ItL 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 Fir’& American Title Insurance Co. Date : August 5, 1997 Escrow No. : 97-3991AS THE FOLLOWING PRORATIONS AND/OR ADJUSTMENTS ARE TO BE MADE, BASED ON A 30-DAY MONTH, AS OF: “CLOSE OF ESCROW” , X Prorate taxes based on the amount of the last tax statement of the Tax Collector issued prior to the close of escrow. (If the amount of the new tax bill issued by the Tax Collector after the close of escrow is more or less than the amount used for proration purposes, the difference, if any, will be adjusted by the parties herein outside of escrow). Sellers are to forward to Buyers any present or future tax bills on the property herein. 1. TI3.E CLOSE OF TIIIS ESCROW IS CONTINGENT UPON TIIE FOLLOWING: 1A. Escrow Holder is instructed to order a Preliminary Title Report and copies, if any, of covenants, conditions, and restrictions. Upon receipt, Escrow Holder will f&ward same to Buyer who will then have 10 days from receipt in which to disapprove in writing. Absence of written notification by Buyer(s) of disapproval within specified time shall be deemed Buyer’s approval of the Preliminary Report thereby satisfying this contingency in its entirety. IB. Buyer is to approve the Environmental Survey within 10 days from B’uyer’s receipt of same. Buyer and Seller are to notify Escrow Holder in writing of the date Buyer received the Environmktal Survey. Unless Escrow Holder has received written disapproval from Buyer within the specified time period, Escrow Holder is authorized and instructed to deem this contingency as satisfied by the Buyer. 1C. Buyer is to review and approve all inspections, investigations (including the geological inspection) and all applicable documents and/or applicable information effecting subject property on or before August 29, 1997. Unless Escrow Holder has received written disapproval from the Buyer on or before said date, Escrow Holder is instructed to deem this contingency as satisfied by the Buyer. ID. Prior to close of escrow Seller is to remove all hazardous waste from subject property. Unless Escrow Holder has received written disapproval from Buyer prior to close of escrow, Escrow Holder is instructed to deem this contingency as satisfied by Buyer. 2. TERMS AND ADDITIONAL INSTRUCTIONS 2A. For clarification purposes only with respect to thk Commercial Real Estate Purchase Contract, Receipt for Deposit and Escrow Instructions, Buyer and Seller acknowledge and approve that the “Effective Date” is defined as August 1, 1997. 2B. Seller herein reserves the right to exchange out of the subject property under the provisions of Internal Revenue Code Section 1031, and shall have the right, as expressly reserved herein, to elect a 1031 Tax Deferred Exchange at any time prior to the close of escrow, however, parties agree that this transaction is not predicated or conditioned on an exchange, nor shall the close of escrow be delayed therefor, except by mutual agreement of the parties. If Seller elects to effect a 1031 Tax Deferred Exc’hange, Buyer agrees to execute additional instructions, documents, agreements or instruments required therefor, provided however, that Buyer shall incur no additional costs or expenses as a result of, or in connection with, the exchange. Parties, by signature herein, acknowledge that they have consulted their respective counsel and that their decisions and instructions to Escrow Holder are being made and given solely in reliance upon the counsel of their respective legal and/or tax consultant(s). No representation is made by First American Title Insurance Company or Escrow Holder as lo the legality. sufficiency or tax consequences of exchange transactions, and, parties agree to hold First American Title Insurance Company and Escrow Holder harmless from any loss which may be sustained in the event their exchange is audited by the Internal Revenue Service and disallowed as a 103 1 Tax Deferred Exchange. 2C. These Escrow Instructions do not cancel or supersede any provision contained in the Commercial Real Estate Purchase Contract and Receipt for Deposit and/or any addendum(s) thereto that the parties have executed outside of escrow. Escrow Holder’s only concerti and responsibility will be to comply with the specific instructions contained in these Escrow Instructions, regardless of any agreement between the parties outside of escrow. 2D. At the request of the Buyer, Escrow Holder is authorized and instructed to forward to Seller for completion and execution the FTB 590 and the FIRPTA forms. In the event it is determined that Seller is not-exempt from withholding in accordance with FIRPTA {and CAL FIRPTA, Escrow Holder will be handed further written instructions from the ADDITIONAL INSTRUCTIONS ATTACHED IIERETO AND MADE A PART IIEREOF My initials below represent my agreeme and acknowledgnrenl of the foregoing. Seller Initials: ------ & Buyer Initial * Page 2 13 Fiist American Title Insurance Co. Date : August 5, 1997 Escrow No. : 97-3991AS undersigned. t ESCROW HOLDER GENERAL PROVISIONS DEPOSIT OF FUNDS AND DISBURSEMENTS Escrow Holder shall deposit all funds received in this- escrow in any financial institution insured by a federal agency of the United States Governmenr, including financial institufions affiliated with Escrow Holder’s company, in one or more general escrow demand accounts. Unless Escrow Holder is handed a W-9 form and specific investmenr instmclions from the Buyer, and Seller, all funds delivered lo Escrow Holder pursuant to these insrructions will be deposited in a non-interest bearing fiduciary account. All disbursements shall be made hy Escrow Holder’s check unless otherwise inStNCtCd in writing. Escrow Holder is authorized not to close escrow or disburse until collected funds have been confirmed in escrow. GOOD FUNDS LAW The parties understand that ALL funds to close escrow and/or to be released early must be deposited into escrow prior to the date of closing/early release to allow sufficient time for clearance of the funds prior to disbursement. In the event such funds are not in the form of a cashier’s, certified or teller check drawn on a financial institution, sufficient time must be allowed for clearance to comply with any “good funds” law which is in effect. (For escrows conducted in California, the good funds law is Section 12413.1 of the California Iysurance Code.) Funds may be wired directly into Escrow Holder’s depository bank account to avoid waiting for clearance. PRORATIONS AND ADJUSTMENTS The expression “close of escrow” used in this escrow means the date on which documents referred to herein are recorded and relates only to prorations and/or adjustments unless otherwise specified. All prorations and/or adjustments are to be made on the basis of a 30-day month unless otherwise instructed in writing. RECORDATION OF DOCUMENTS Escrow Holder is authorized to record any documents delivered through this escrow, the recording of which is necessary or proper in the issuance of the requesred policy of title insurance. AUTHORIZATION TO FURNISH COPIES Escrow Holder is to furnish a copy of these instructions, amendments thereto, closing statements and/or any other documents deposited in this escrow to the lender(s), the real estate broker(s), the attorney(s) and/or the accountant(s) involved in this transaction upon request of,the lenders, brokers, attorneys or accountants. PERSONAL PROPERTY TAXES No examination, UCC Search’or insurance as to personal property and/or the amount or payment of personal propeq taxes is required unless otherwise instructed in writing. RIGHT OF CANCELLATION Any party instructing Escrow Holder to cancel this escrow shall file not&e of cancellation in Escrow Holder’s office, in writing. Within a reasonable time, Escrow Holder shall mail, by certified and regular mail, one copy of the notice to each of the other parties at the addresses stated in this escrow. Unless a written objection to cancellation is filed in Escrow Holder’s office by a party within ten (10) days after date of mailing, Escrow Holder is authorized at its option to comply with the notice and demand payment of Escrow Holder’s cancellation charges as provided in this agreement. If a written objection is filed, Escrow Holder is authorized at Escrow Holder’s option to hold all the money and documents contained in this escrow and take no further action until otherwise directed, either by the part&’ mutual written instructions, or final order of a court of competent jurisdiction. ACTION IN INTERPLEADER The parties hereto expressly agree that-Escrow Holder has the absolute right at Escrow Holder’s election to file an action in interpleader requiring the parties to answer and litigate their several claims and rights between themselves and Escrow Holder is authorized to deposit all documents and funds held in this escrow with the clerk of the court. In the event such an action is filed, the parties jointly and severally agree to pay Escrow Holder’s cancellation charges and costs, expenses and reasonable attorneys’ fees which Escrow Holder is required to expend or incur in the interpleader action, the amount thereof to be fixed and judgement therefor to be rendered by the court. Upon the filing of the action, Escrow Holder shall thereupon be fully released and discharged from all obligations to further perform any duties or obligations otherwise imposed by the terms of this escrow. TERMINATION OF AGENCY OBLIGATIONS If there is no action taken on this escrow within six (6) months after the “time limit date” as set forth in the escrow instructions or written extension thereof, Escrow Holder’s agency obligation shall terminate at Escrow Holder’s option and all documents, monies or other items held by Escrow Holder shall be returned to the parties depositing the same. In the event of termination of this escrow, whether at the request of any of the parties or otherwise, all fees and charges due in connection with this escrow including expenditures incurred and/or authorized shall be paid by the parties hereto. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 I’ 59 60 61 ADDITIONAL INSTRUCTIONS A’ITACIIED IIERETO AND MADE A PART IIEREOF My initials below represent my agree atrd acknowledgment o/fl~e/oregoit~g. Seller Initials: ------ Buyer Initials: & Pagk 3 > First AmeriCan Title Insurance Co. Date : August 5, 1997 Escrow No. : 97-3991AS 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 CONFLICTING IN!?TRUCTIONS Should Escrow Holder before or after close of escrow receive or become aware of any conhicting demands or claims with respect to this escrow or the rights of any of the parties hereto, or any money or property deposited herein or affected hereby, Escrow Holder shall have the right to discontinue any or all further acts on Escrow Holder’s part until the conflict is resolved to Escrow Iiolder’s satisldction, and Escrow Holder shall have the further right to commence or defend any action or proceedings for the determination of the conflict as provided in the “Right of Cancellation” and ‘Action in Interpleader” paragraphs of these General Provisions. USURY: Escrow Holder is not to be concerned with any question of usury in any loans or encumbrances involved in the processing of this escrow and Escrow Holder is hereby released of any responsibility or liability therefor. INDEMNITY FOR A’ITORNEYS FEES AND COSTS In the event suit is brought by any party to this escrow, including the Escrow Holder or any other party, against each other, or others, including the Escrow Holder, claiming any right they may have against each other or against the title con)pany. then in that event, with the exception of gross negligence by the title company, the parties hereto agree to indemnify and hold the title company harmless against any attorney’s fees and costs incurred by it. AMENDMENTS TO ESCROW INSTRUCTIONS: Any amendment or supplement to these escrow instructions must be in writing. These escrow instructions and any written amendments, supplements or exhibits attached hereto constitute the entire escrow agreement between the Escrow Holder and the parties hereto with respect to the subject matter hereof and supersedes all prior understandings, with respect thereto. PROPERTY TAXES SUBSEQUENT TO CLOSE OF ESCROW Buyer and Seller herein acknowledge that there may be supplemental and/or additional taxes which may be assessed by reason of a change in ownership or completion of construction. This will be reflected in the policy of title insurance issued at the close of escrow, Escrow Holder shall not be concerned with any adjustment(s) of supplemental taxes between the parties for bills received by the parties after the close of escrow. In the event Seller has received Supplemental Tax Bill(s) prior to close of escrow, Seller will provide them to Escrow Holder with an explanation of time periods covered by the tali bill(s) for proration purposes. (In California the applicable provisions are found in California Revenue and Taxation Code Sections 75 and following,) In the event Buyer or Seller have applied, or apply for a reduced assessment, and a refund of taxes is received by Escrow IIolder as Agent, Escrow Holder is to retain the funds in one or more of Escrow Holder’s general escrow demand accounts until Escrow Holder has received mutual wriften instructions from the parties directing Escrow Holder as to the proper disposition of the tax refund. CIlANGE OF OWNERSIIII’ FORMS Buyer will furnish Escrow Holder with a completed Preliminary Change of Ownership Report which Escrow Holder is instructed to submit at time of recordation pursuant to Section 480.3 of the California Revenue and Taxation Code. In the event this escrow is otherwise ready to close and Buyer has not provided the above report, Escrow Holder is instructed to close this escrow and collect from Buyer for the County Recorder any additional fee required for recordation when a Preliminaty Change of Ownership Report does not accompany the documents being recorded. Buyer is aware that if the above report is not submitted at time of recordation 4s required, a Change of Ownership Statement must be filed by the Buyer with the County Assessor not later than 45 days after recordation and failure to do so will result in’additional penalties. Buyer acknowledges that Escrow Holder shall have no responsibility and/or liability for the Cbunty Recorder’s acceptance or rejection of the Preliminary Change of Ownership Report. For escrows involving property in States other than California parties will provide Escrow Holder with applicable documents as may be required by the county recorder or taxing authority to close this transaction. INSURANCE POLICIES OTHER TIIAN TITLE INSURANCE When dealing with real property and/or improvements located thereon it is advisable to obtain fire, hazard or liability insurance coverage. In all acts in this escrow relating to insurance, including adjustments, if any, Escrow Holder may assume that each policy is in force and that the necessary premium has been paid. Escrow Holder shall not be responsible for obtaining fire, hazard or liability insurance, unless Escrow Holder has received written instruction prior to close of escrow from the parties or their respective lenders. FACSIMILE INSTRUCTIONS In the event the parties utilize “facsimile’ transmitted signed documents, Buyer and Seller hereby agree to accept and instruct the Escrow Holder to rely upon such documents as if they bore original signatures. Buyer and Seller hereby acknowledge and agree to provide to Escrow Holder, within 72 hours of transmission, such documents bearing the original signatures. Buyer and Seller further acknowledge and agree that documents necessary for recording with other than original signatures (i.e., facsimiles) will not be accepted for recording by the County Recorder thereby delaying the close of escrow. EXECUTE IN COUNTERPART These escrow instructions and any subsequent amendments may be executed in one or more counterpafls, each of which independently shall have the same effect as if it were the original, and all of which taken together shall constitute one and the same instruction. IF THE TRANSACTION WHICH IS THE SUBJECT OF THIS ESCROW IS A SALE, THE PARTIES TO THIS TRANSACTION MAY HAVE CERTAIN TAX REPORTING AND WITHHOLDING OBLIGATIONS PURSUANT TO STATE LAW OR FEDERAL LAW REFERRED TO BELOW. I REPORTING TO TIIE INTERNAL REVENUE SERVICE The Tax Reform Act of 1986 provides that Escrow Holder must report certain information regarding all real estate transactions to the Internal Revenue ADDITIONAL INSTRUCTIONS A’ITACIIED HERETO AND MADE A PART IIEREOF My inidrrls below represcnf my agree and acknowledgment of fhc foregoing. Seller Initials: ------ Buyer Initials: Page 4 - Pirst American Title Insurance Co. Date : Aegust 5, 1997 Escrow No. : 973991AS 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 Service. This information includes, among other things, the Seller’s social security number and/or tax identification number and forwarding address, and the gross sales price of the transaction. This is not a requirement generated by Escrow Holder, but rather a means of complying with the new tax law. This information must be provided to Escrow Holder upon the opening of escrow and neither can escrow be closed, nor can a deed or any other documents be recorded until the information is provided and the Seller certifies the accuracy of the infomlation in writing. By execution of these escrow instmctions. the parties acknowledge receipt of this notice. TAX REPORTING AND WITIIHOLDING OBLIGATIONS OF THE PARTIES CALIFORNIA LAW: In accordance wirh Section 18662 and 18668 of the California Revenue and Taxation Code. a Buyer may be required to withhold an amount equal to three and one-third (3-113) percent of the sales price, in the case of a disposition of California real property interest by either: (I) A Seller who is an individual with a last known street address outside of California or when the disbursement instructions authorize the proceeds to be sent to a financial intermediary of the Seller; OR (2) A corporate Seller which has no permanent place of business in California. For failure to withhold, the Buyer may become subject to a penalty in an amount equal to the greater of IO percent of the amount required to be withheld or five hundred dollars ($500.00). However, notwithstanding any other provision included in the California statutes referenced herein, no Buyer will be required to withhold any amount or be subject to penalty for failure to withhold if: (a) The sales price of the Califor,nia real property conveyed does not exceed one hundred thousand dollars ($lOO,OOO.OO); OR (b) The Seller executes a written certificate. under the penalty of perjury, certifying that the Seller is a resident of California. or if a corporation, has a permanent place of business in California; OR (c) The Seller, who is an individual, executes a written certificate, under the penalty of perjury, that the California real property being conveyed is the Seller’s principal residence (as defined in Section 1034 of the Internal Revenue Code). The Seller is subject to penalty for knowingly filing a fraudulent cenificatd for the purpose of avoiding the withholding requirement, The California statutes referenced herein include provisions which authorize the Franchise Tax Board to grant reduced withholding and waivers from withholding on a case-by-case basis. The Seller may request a reduction in withholding or waiver and the Buyer and Seller may obtain additional information by contacting the Franchise Tax Board, Withhold at Source Unit, P.O. Box 651. Sacramento, CA. 95812-0651 (916-845-4900). LAW OF STATES OTHER TIIAN CALIFORNIA If the parties are required to withhold by the law of a state other than California, the parties understand that the withholding obligation is the exclusive obligation of the parties to this transaction and that Escrow Holder is not obligated to withhold or notify the parties of any withholding obligation they may have. FEDERAL LAW Internal Revenue Code Section 144.5 places special requirements for tax reporting and withholding on the parties to a real estate transaction where the Seller (Transferor) is a non-resident alien, a non-domestic corporation or partnership, a domestic corporation or partnership controlled by non-residents or non-r&ident corporations or partnerships. With respect to both the Srate Law an&Federal Law referred to above, the parties to this transaction should seek an attorney’s, accountant’s, or other tax specialist’s opinion concerning the effect of these laws on this transaction. The parties to this transaction should NOT act on or rely on any statements made or omitted by the Escrow Officer, Title Officer, or other Closing Officer with respect to tax reporting or withholding requirements. By execution of these escrow instructions, the parties acknowledge receipt of this notice. DISCLOSURE OF TAXPAYER IDENTIFICATION NUMBERS Internal Revenue Code Section 6109(h) imposes requirements for fumisiing, disclosing and including taxpayer identification numbers in tax reNmS on the parties to a residential real estate transaction involving seller-provided financing. The parties understand that the disclosure reporting requirements are exclusive obligations between the parties to this transaction and that Escrow Holder is not obligated to transmit the taxpayer identification numbers to the Internal Revenue Service or to the parties. Escrow Holder is not rendering an opinion concerning the effect of this law on this transaction, and the parties are not acting on any statements made or omitted by the Escrow or Closing Officer. By execution of these escrow instructions, the parties acknowledge receipt of this notice. To facilitate compliance with this law, the parties to this escrow hereby authorize Escrow Holder to release any party’s taxpayer identification numbers to any requesting party who is a parry to this transaction. The requesting party shall deliver a written request to escrow. The parties hereto waive all rights of confidentiality regarding their respective taxpayer identification numbers and agree to hold Escrow Holder harmless against any fees. costs, or judgements incurred and/or awarded in connection with the release of taxpayer identification numbers. TIME IS OF TIIE ESSENCE OF TIIESE INSI’RUCTIONS If this escrow is not in condition to close by the closing date referred to in the body of these instructions, and demand for cancellation is received by you from any party IO this escrow after said date, you will act in accordance with die cancellation instructions contained in these general provisions. If no demand for cancellation is made, you will proceed to close this escrow when the principals have complied with the escrow instructions. FUNDS’HELD FJ3E AGREEMENT: IF J?UNDS REMAIN IN ESCROW ON THE DATE WHICH IS NINETY (90) DAYS Al?I’ER THE CLOSE OF ESCROW (OR IN THE EVENT ESCROW HAS NOT CLOSED, NINETY (90) DAYS AI;TER THE ESTIMATED CLOSING DATE SET FORTH IN THESE INSTRUCTIONS), THEN A MONTHLY FUNDS HELD FEE OF $25.00 SHALL ACCRUE FOR EACH MONT11 OR FRACTION OF A MONTH THEREAFTER THAT THE FUNDS, OR ANY PORTION THEREOF, REMAIN IN ESCROW. ESCROW IS AUTHORIZED TO DEDUCT THE MONTHLY FUNDS HELD FEE DIRECTLY FROM THE FUNDS HELD ON A MONT&Y, OR OTHER PERIODIC BASIS (IE: QUARTERLY, SEMI-ANNUALLY, ETC.). BY INITIALLING BELOW, THE PARTIES ACKNOWLEDGE AND AGREE TO PAY THESE SUMS TO COMPENSATE YOU FOR YOUR ADMINTSTRATION, MONITORING, ACCOUNTING, REMINDERS AND OTHER NOTIFICATIONS AND PROCESSING OF THE FUNDS SO HELD IN ACCORDANCE WITH THIS IIERETO AND MADE A PART IIEREOF attd ackttowIedgtttettl o/the joregoittg. Seller Initials: ------ 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 First American Title Insurance Co. Date : August 5, 1997 Escrow No. : 97-3991AS FUNDS HELD AGREEMENT. INITIALS: INITIALJ . $j ’ WE, JOINTLY AND SEVERALLY, ACKNOWLEDGE RECEIPT OF A COMPLETE COPY OF THE WITHIN ESCROW INSTRUCTIONS AND BY OUR SIGNATURES SET FORTH BELOW, ACKNOWLEDGE THAT WE HAVE READ, UNDERSTAND AND AGREE TO BE BOUND BY THE TERMS AND CONDITIONS CONTAINED THEREIN, IN THEIR ENTIRETY. The undersigned Buyer will pay, on demand, the Buyer’s customary charges (including, by way of example, but not limited to, one-half escrow fee, charges for preparing and recording documents, premium for new or additional hazard insurance, lender’s charges, lender’s impounds and prepaid’interest demand, if any, and applicable title company charges) necessary to complete this transaction. I HAVE RECEIVED A COPY OF THESE INSTRUCTIONS. , Buyer’s Signature: t CARLSBAD RED LOPMENT AGENCY By: MARTIN ORENYAK, COMMUNITY DEVELOPMENT DIRECTOR . By: . Address: Attn: Debbie Fountain, 2965 Roosevelt Street, Ste B, Carlsbad, CA The undersigned Seller(s) approve of the foregoing instructions and agree to sell and will deliver to you papers, instruments and/or funds required from me (within the “close of escrow date” specified herein), which you are authorized to deliver when you can issue your policy of title insurance as set forth above. I agree to pay any personal property taxes properly chargeable to me. You are instructed to use the money and record the instruments, to comply with said instructions and to pay all encumbrances of record necessary without further approval including prepayment penalties to show title as herein provided. I agree to pay one-half of the escrow fee, drawing.of documents and such other charges which are advanced for my account regardless of the consummation of this escrow. I also agree to pay the policy of title insurance premium and recording fees which are properly chargeable to me and documentary transfer tax which you are instructed to enter on the deed and affix your signature thereto, if required. In the dvent this amount is incorrect you are instructed to enter the correct amount on the deed and deduct the additional therefore from funds accruing to my account. In the event an incorrect amount is entered on the deed and said deed is recorded, I hereby hold you harmless and agree to reimburse you for any loss you may sustain by said amount being incorrect. You are further instructed to pay commission, if any, as set forth on separate commission instructions made a part hereof. A’ I ADDITIONAL M!.XRUCTIONS ATTACHED HERETO AND MADE A PART HEREOF My initials below represent my agreement and acknowledgmcnl of lllc foregoing. Seller Initials: ------ Buyer Initials: Page. 6 ,I I Fikst American Title Insurance Co. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 66 67 68 69 70 71 * August 5,1997 : . Escrow No. : 97-3991AS I HAVE RECEIVED A COPY OF THESE INSTRUCTIONS. Seller Signature(s): DOROTHY ANN ROSS and RICHARD BAUER, Co-trustees under Trust Agreement dated October 27, 1976 By: Richard Bauer, Co-trustee RICHARD BAUER DOROTHY ANN ROSS Dorothy Ann Ross, Co-trustee THE CROCKER NATIONAL BANK, Co-trustee under Trust Agreement dated October 27,1976 By: *, - Bv: Address: c/o Don Adkinson, Esq. - - END OF INSTRUCTIONS - - Page 7 f2 * ? :g. 4 qj _ * “i 4 * * A , ;TAl!WlED BY CALIFORNIA ASSOCIATION OF RL JRS COMMERCIAL REAL ESTATE PURCHASE CONTRACT, RECEIPT FOR DEPOSIT, AND ESCROW INSTRUCTIONS (NON-RESIDENTIAL) THIS IS MORE THAN A RECEIPT FOR MONEY. ,T IS INTENDED TO BE A LEGALLY BINDING CONTRACT READ IT CAREFULLY. CALlFoRNlA ~socJATION OF REALTORS” (C.A.R.) STANDARD FORM DATE. AT _, Calm. - ‘. (“Buyer”) n aher -- THE SUM OF lo be applied toward the -CE of t* --- ) FOR PURCHASE 0~ PROPERTY SITUATED IN Carlsbad , COUNTY OF , Calrfornia, DESCRIBED AS 2737 State Street ASSESSOR’S PARCEL NO.: 203-295-01-01 (“Property”) 1. ASE PRICE CONSISTS OF: 203-295-01-02 OSIT, to be deposited u with Escrow Holder, 0 into Broker’s trust account, or q 0 Personal check, 0 Cashier’s check, 0 Cash, or 0 DEPOSIT. within ___ days following acceptance of the offer, to be deposited of Buyer shall be deposited as immediately collectible funds in any manner acceptable screw Holder. OBTAINING OF D IT AND DOWN PAYMENT by the Buyer is NOT a contingency, unless otherwise D. FINANCING: THE 0 G OF THE LOAN(S) BELOW IS A CONTINGENCY OF THIS AGREEMENT. shall act diligently and in good faith to o II applicable financing. (1) Buyer to apply, quali at a 0 fixed interest rate no -o/o per year, or q adjustable interest rate n % per year at origination, with a maxi nterest rate over life of loan not to exceed -O/O. Initial month1 s not to exceed 5 e amortized over a period of not less than t less than - years. Loan fees not Additional terms and conditions: \ (2) Buyer q to assume, n to take title “subj in favor of including interest at __ Loan fees not to exceed Additional terms. / N with an approximate balance of $ _ payable monthly at .$ / / \, ,/ at a 0 fixed interest rate not to exceed 0 adjustable interest rate not to exceed not to exceed of not less than - Additional terms and conditions: rest rate over life of loan Loan to be amortized over a period (4) Buyer 0 to assum in favor of including interest at Loan fees not to exceed Additional terms: / \ \ including interest at -O/o all due days after receipt of those documents. (6) &her: Buyer to p~cashdehe~M-iaor to closincr. E. TOTALPURCHASEPRICE Five.Hundred.Thousand. and.no/l.OO-.~----r---- $5oO_,QQ 10 Buyer and Seller acknowledge receipt of copy of this page. which conslitutes Page 1 of a-- Pages Buyer’s Initials ( 1 (. ) Seller’s lnrtials (--.J (----) THIS STANDARDIZED DOCUMENT HAS BEEN APPROVED BY THECAUFORNU ASSOCIATK)NCIFREALTORS” (CAR.) INFORMONLY. NOREPRESENTATK)NISYADEASTOTHE APPRDvA OF THE FORM OF ANY SUPPLEMENTS NOT CURRENTLY PUBLISHED BY CAR. ORTHE LEt.3ALVAllDllY OR ADEOUACY Of ANY PROVISION IN ANY SPECIFIC TRANSACTiON. IT %OUl NOT BE USED WITH EXTENSIVE RIDERS OR ADDITIONS. . . ._, ., <.h ,I ,^. . . - 14 Subfect Properly Address -2.7X7 State Street I -Car Wed ~. 7. PRORATIONS: A. Real properly taxes and assessments. Interest. rents. Assocralron regular dues and regular assessments, premrums on Insurance assumed by Buyer payments on bonds and assessments assumed by Buyer, and &IIY.. othr?~_ch?rg’?$ -t-O the..proEZrtY_ shall be parrl . current and proraled between Buyer and Seller, unless otherwrse shown In paragraph 78 or 7C. as of iF date of recordahon of Ihe deed xadiix - -. - -~ ~. .~ B Any Specral Assessment Drstnct bonds and assessments whrch are now a ken shall be: _~- LX pard current by Seller as of the date shown m paragraph 7A (payments that are not yet due shall be assumed by Buyer without credrt toward the purchase pnce); &f& --_ ~-__-. --___.-.---- ____ ~_ -____- -___ D. County transfer lax or transfer fee shall be paid by e-.‘City transfer tax or transfer fee shall be paid by ZkLLer xwa6xxxzk3sa~~x~~~ ____ E. THE PROPERTY WILL BE REASSESSED UPON CHANGE OF OWNERSHIP THIS WILL AFFECT THE TAXES TO BE PAID. Any supplemental tax brfls shall be paid as follows: (1) for periods after close of escrow, by Buyer (or by fmal acquiring party, if part of an exchange); and (2) for periods pnor to close of escrow, by Seller. TAX BILLS ISSUED AFTER CLOSE OF ESCROW SHALL BE HANDLED DIRECTLY BETWEEN BUYER AND SELLER 8. BUYER’S INVESTIGATION OF PROPERTY CONDITION: Buyer shall have the right to conduct Inspections, investigations, tests, surveys, and other studres (“lnspectrons”) at Buyer’s expense. Buyer shall, wrthin the time specified in paragraph 348(2) and (3), complete these lnspectrons and shall notify Seller m wnting of any item(s) disapproved. Buyer IS strongly advrsed to exerctse this right and to make Buyer’s own selection of professronats wrth appropriate qualifications lo conduct lnspectrons of the entire Property. If Buyer does not exercise this right to conduct Inspections, Buyer IS actmg against the advrce of Broker(s). In any event, Buyer IS relying upon Inspections made or obtained by Buyer. BUYER AND SELLER ARE AWARE THAT THE BROKER(S) IJO NOT GUARANTEE, AND IN NO WAY ASSUME(S) RESPONSIBILITY FOR, THE CONDITION AND/OR SUITABILITY OF THE PROPERTY. Seller shall make the Property available for all Inspections. Buyer shall keep the Property free and clear of liens; shall indemnify and hold Seller harmless from all Irabrlrty. claims, demands, damages, and costs; and shall repair.all damages arising from the Inspections. &fft% Buyer shall provide to Seller, at no cost, complete copies of all Inspection reports obtained by Buyer concerning the Property, BUYER IS STRONGLY ADVISED TO INVESTIGATE THE CONDITION AND SUITABILITY OF ALL ASPECTS OF THE PROPERTY AND ALL MATTERS AFFECTING THE VALUE OR DESIRABILITY OF THE PROPERTY, INCLUDING, BUT NOT LIMITED TO, THE FOLLOWING: A. Structural, foundation, roof, plumbing. heating, ventilating and air conditionmg, electrical, mechanical, security, appliances, and any personal property included in the sale. 8. Square footage, room dimensrons. lot size, and age of Property improvements. (Any numerical statements regarding these items are APPROXIMATIONS ONLY and should be verified by Buyer.) C. Property knes and boundaries. (Fences, hedges, walls, and other natural or constructed barners or markers do not necessarily rdentrfy true Property boundarres. Property lines may be verified by survey.) D. Sewer, septrc. and well systems and components. (Property may not be connected to sewer, and applicable fees may not have been pard. Septic tank may need to be pumped and leach field may need to be Inspected ) E. Lrmitattons. restrictrons, and requirements regarding Property use, future development, zoning, building. size, governmental permtts, and mspectrons F. Water and utility availabrlrty and use restrictions. G. Potentral envrronmental hazards Including asbestos, formaldehyde, radon gas, lead-based pamt, other lead contaminatron, fuel or chemical storage tanks, contaminated so11 or water, hazardous waste, electromagnetic fields, nuclear sources, and other substances, materials, products, or condrtrons. H. Geologic/seismrc conditions. so11 and terram stability, suilabilrty. and drainage. I. Netghborhood condittons. proximity to schools, proxrmity and adequacy of law enforcement, proximity to other commerctal, industrial. restdenttat. or agncultural actrvrties. crime statistics, fire protection. other governmental services, existing and proposed transportation, constructron and development. arrport noise. noise or odor from any source, or other nuisances, hazards or circumstances. and any condrtrons or influences of srgnrfrcance to certarn cultures and/or religrons. J. Buyer IS advised to make further inquiries and to consult government agencies, lenders, insurance advrsors. architects, and other appropriate persons and entrtres concernmg the use of the Property under applicable building. zoning. fire. health, and-safety codes, and for evaluahon of potentral hazards K. Wood Destroying Pests and Organrsms Inspection Report. Lxamx---- ____ __.__ __---- -~-.--.-- 9. FIXTURES: Excluding trade fixtures. all permanently installed fixtures and fittings that are attached to the Property, or for whrch special openings have been made, are INCLUDED IN THE PURCHASE PRICE (unless excluded below) and are to be transferred free of liens. These include. but are not Iimrted to. heating. ventrlatmg and air conditioning systems. air coolers, electrical and other power systems. lighting and plumbrng fixtures. solar systems. applrances, exrstmg screens, awnmgs. shulters. window coverings, attached floor coverings. antennaslsatellrte dashes and related equipment. private Integrated felephone . systems and other telecommumcatrons systems, securtty systems/alarms (if owned by Seller), door openers/controls, marlbox, existing m-ground landscaping Including lrees/shrubs.)BPUK_- _-_ ___- ---.~ ~ -- ---- --~-.- -- ~_ -- .--. ITEMS EXCLUDED: -_bTOIl% __---.-.- ___. ____ -. --._. 11. TAX WITHHOLDING: A. Under the Forergn Investment m Real Property Tax Act (FIRPTA), IRC 51445. every Buyer must, unless an exemptton applies. deduct and whthhold tO”o of the gross sales price from Seller’s proceeds and send it to the Internal Revenue Service. 11 the Seller IS a “foreign person” under that statute 8. In addmon. under Calrforma Revenue and Taxation Code $16662. every Buyer must. unless an exemption applies. deduct 3’ 3% of the gross sales prce from Seller’s proceeds and send II to the Franchise Tax Board if the Seller has a last known address outside of Calrfornra or 11 the Seller’s proceeds will be pard to a linanctal intermediary of the Seller. C. Penalties may be imposed on a responstble party for non-compk8nce witn the requirements of these statutes and related regulations Seller and Buyer agree to execute and deliver any instrument. affrdavrt. statement, or instruction reasonably necessary to carry out these requirements, and to withholdmg of tax under those statutes rf required. (SELLER’S AFFIDAVIT OF NON-FOREIGN STATUS AND/OR CALlFOANtA RESIDENCY (CA A Form AS-14). OR BUYER’S AFFIDAVIT (C A R. Form AB-11). IF APPLICABLE, SHALL SATISFY THESE REQUIREMENTS ) Buyer and Seller acknowledge receipt of copy of this page, which constilutes Page 3 Of _- _ Pages Buyer’s tnrtrals (- _.__ -) (- ___.) Seller’s rnitials (_._.__ --.) (--- _-_ ) r------- OFFICE USE ONLY ~-1 1 o,,, -,,,.a* “,^~>r.,.n-‘..c.-- SutqJc1 PrOpeny Address: _ 2787 St- ~2 x%t-+2(arl;sBa&E--- - __- - ___--_ , 19 __ er shall be allowed I_ days following acceptance to give wntten notice to Seller of submisslon of loan application(s) to lende be allowed __ days following acceptance to give written notice to Seller that Buyer has or has no1 obtained fin time set forth in paragraph lF(2). Buyer gives notice that financing has been obtained, then the financing contingen time set forth in paragraph lF(2). Buyer gives notice that financmg has not been obtained, then Buyer must c r cancel this Agreement in writing. ice(s) as set forth in paragraph lF(1) or lF(2), then Seller may cancel lhis Agreement wllh days after explratlon of the time set f aragraph lF(1) or lF(2). (5) If Buyer or Seller gtv f any, less any applicable fees or costs, shall be retu G. ASSUMPTION OR *‘SUBJ e event Buyer assumes or takes title “subject to” an existing I er shall promptly request and, upon receipt. provide Buyer with copies of able notes and Deeds of Trust, loan balances, and current st rates. A note may contain a number of features, including such provisions as int hanges. monthly payment changes, balloon p d acceleration provisions. Buyer may provide Seller written notice of disapproval withm not be unreasonably withheld. Difference in existing loan balances shall be adjusted in H. ADDITIONAL SELLER FINANCING TERMS: Seller not be limited to, the following additional terms: (1) REQUEST FOR NOTICE OF OEFAULT on senior loan (2) Buyer shall execute and pay for a REQUEST FOR NOTI in escrow and at any future time if requested by Seller. (3) Acceleration clause making the loan due, at Seller’s opti nsfer of the Property or any interest in it, or upon default of any payment under the note, when permitted by law. (4) A late charge of -% of the installment due, or __ days of the date it IS due. (5) Title insurance coverage in the form of a joint pro uring Seller’s deed of trust interest in the Property. (6) Tax Service shall be obtained and paid by Buye (7) Buyer shall provide fire and extended covera nce during the period of Seller in an amount sufficient lo replace all improvements on the Property, or the total encumbranc the Property, whichever is le payable endorsement in favor of Seller. (6) The addition, deletion, or substitution of rson or entities under this Agreemen consent. Seller may grant or withhold nt in Seller’s sole discretion. Any additional or s person or entity shall, if requested by Seller, submit to Seller the same docu as required for the original named Buyer. Seller or Brok btain a credit report on any such person or entity. (9) If the Property is mixed-u erty, which includes l-4 dwelling units, Buyer and Seller shall execute r Financing Disclosure Statement (C.A.R. Form SFD-1 de @29X-2967), if applicable, as provided by arranger of credit, as soon as pr prior to execution of security documents. ADDITIONAL FINA / \ / 2. SUPPLEMENTS: The AlTACHED supplements are incorporated herein: I- n Exchange Supplement (ES-14) q : 3. ESCROW: This Agreement shall constitute mutual instructions by Buyer and Seller to Escrow Holder not to prepare any document restating, rephrasing, or amending this Agreement unless receiving further written instructions from both parties. Escrow Holder shall conform its conduct in accordance with the terms of this Agreement. Buyer and Seller are advised that Escrow Holder may require them to sign additional instructions for matters not covered by this Agreement, but which do not alter the terms of this Agreement. Escrow instructions shall be signed by Buyer and Seller and delivered to -. the designated Escrow Holder, within a 5 days following acceptance (or 0 at least ___ days before close of escrow). Buyer and Seller hereby jointly instruct Escrow Holder and Broker(s) that Buyer’s deposit(s) placed into escrow or into Broker’s trust account will be held as a good faith deposit toward the completion of this transaction. Release of Buyer’s funds will require mutual, signed instructions from both Buyer and Seller, judicial decision, or arbitration award. Escrow shall close 0 on 19-, or a within 60 days following acceptance, Escrow fee to be paid as follows: one-half by Seller and one-haif by Buver. 4. POSSESSION AND KEYS: Possession and occupancy, subject to the rights of tenants under existing leases, shall be delivered to Buyer B on close of escrow, rXfiW=wl XfX#K~etWWXWWKIQ Seller shall, at close of escrow, -provide Buyer with any keys or other means to operate all property locks and$armsBuyer to B ay for AL' 5. TITLE AND VESTING: Buyer shall be provided a current preliminary (title) report at Sellers urvey and ex endescovc expense. wer af shall, within the time specified in paragraph 348(U). provide written notice to Seller of any items reasonably disapproved. (A preliminary report IS only an offer by Ihe title insurer to issue a policy of title insurance and may not contain every item affecting title.) At close of escrow: (a) Title shall be transferred by grant deed; (b) title shall be free of liens, except as provided in this Agreement; (c) title shall be free of other encumbrances, easements, restrictions, rights, and conditions of record or known to Seller, except for (1) all matters shown in the preliminary (title) report which are not disapproved in writing by Buyer as above, Z&X@ ; (d) Buyer shall receive a&&&%f;EPTitle Association &TA) policy issued by Company at Sellers (An ALTA policy may provide greater protection for Buyer. The designated title company’c%pr&%?if%m$8~~%%ye?~ expense. t, about availabilIty and desirability of other types of title insurance.) For Seller financing, paragraph lH(5) provides for a joint protection policy. Title shall vest as designated in Buyer’s escrow instructions. (THE MANNER OF TAKING TITLE MAY HAVE SIGNIFICANT LEGAL AND TAX CONSEQUENCES; THEREFORE, BUYER SHOULD GIVE THIS MATTER SERIOUS CONSIDERATION.) 6. ASSIGNMENT: Buyer shall not assign all or any part of its interests in this Agreement without first having obtained the written consent of Seller; such consent shall not be unreasonably withheld. However, if Seller is financing all or part of the purchase price, Seller consent shall be deteimined by paragraph lH(6). Any total or partial assignment shall not relieve Buyer of its obligations pursuant to this Agreement. Buyer and Seller acknowledge receipt of copy of this page, which constitutes Page 2 of ___ Pages Buyer’s Initials (. POLIIII-“PI A I ml- L, 1 ( ) Seller’s lnltials ( ) ( Aevlewed by Broker or Designee _. _-. .- -3t?OKER’S COPY l-m-v * T#- n, ,nr, I n f-r me. I-I-“. c-r r-ns .,n*crY-I~ca\ SubJf?Ct Property Address: 7787 State Street, Carlsbad 12. RISK OF LOSS: Except as otherwise provrded in this paragraph, all risk of loss to the Property which occurs after the offer is accepted and before erther htle has been transferred or possession has been given to Buyer, whichever occurs first, shall be borne by Seller. Any damage to the land and Improvements totalling 1 (one) % or less of the purchase price shall: (a) be repaired by Seller until Buyer takes possession of the Property, or (b) be the responslblkty of Buyer once Buyer takes possession of the Property. If the land or improvements to the Property are destroyed or matertally damaged pnor to transfer of title in an amount exceeding 1 (one) % of the purchase price, then whether or not Buyer has possession, Buyer shall have the right only lo either: (a) termmate thus Agreement and recover the full deposit, or (b) purchase the Property in Its then present condition. If this Agreement is terminated pursuant to this paragraph, any expenses paid by Buyer or Seller for credit reports, appraisals, title examination, or inspections of any kind shall remain that party’s responsibility. Whether the loss exceeds, equals, or is less than 1 (one) % of the purchase price, if Buyer purchases the Property, Seller shall assign to Buyer all rights to any insurance claims or insurance proceeds covering, or recovered for, the loss. If transfer of title and possession do not occur at the same time, BUYER AND SELLER ARE ADVISED TO SEEK ADVICE OF THEIR INSURANCE ADVISORS as to the insurance consequence thereof. 13. PROPERTY DISCLOSURES: When applicable to the Property and required by law, Seller shall, within the time specified in paragraph 348(7), provide to Buyer, at Seller’s expense, the following disclosures and information. Buyer shall then, within the time specified in paragraph 348(4), investigate the disclosures and information and provide written notice to Seller of any item(s) disapproved pursuant to the applicable paragraphs below. A. GEOLOGIC/SEISMIC HAZARD ZONES DISCLOSURE: If the Property is located in a Special Studies Zone (SSZ) (Public Resources Code $52621-2625) Seismic Hazard Zone (SHZ) (Public Resources Code @2690-2699.6), or in a locally designated geological, seismic or other hazard zone(s) or area(s) where disclosure is required by law, Seller shall. within the time specified in paragraph 348(7), disclose in writing to Buyer this fact(s) and any other information required by law. (GEOLOGIC, SEISMIC AND FLOOD HAZARD DISCLOSURE (C.A.R. Form GFD-14) SHALL SATISFY THIS REQUIREMENT.) Construction or development of any structure may be restricted. Disclosure of SSZs and SHZs is required only where the maps, or information contarned in the maps, are “reasonably available” as defined in Public Resources Code §§2621.9(c)(l) and 2694(c)(l). B. SPECIAL FLOOD HAZARD AREAS: If the Property is located in a Special Flood Hazard Area designated by the Federal Emergency Management Agency (FEMA). Seller, within the time specified in paragraph 348(7), shall disclose this fact in writing to Buyer. (GEOLOGIC, SEISMIC AND FLOOD HAZARD DISCLOSURE (C.A.R. Form GFD-14) SHALL SATISFY THIS REQUIREMENT) Government regulations may impose building restrictions and requirements which may substantially impact and limit construction and remodeling of improvements. Flood insurance may be required by lender. C. STATE FIRE RESPONSIBILITY AREAS: If the Property is located in a State Fire Responsibility Area, Seller, within the time specified in paragraph 348(7). shall disclose this fact in writing to Buyer (Public Resources Code $4136). Government regulations may impose building restrictions and requirements which may substantially impact and limit construction and remodeling of improvements. Disclosure of these areas is required only if the Seller has actual knowledge that the Property is located in such an area or if maps of such areas have been provided to the county assessor’s office. 0. EARTHQUAKE SAFETY: (1) PRE-1975 PROPERTIES: If the Property was built prior to 1975, and contains RESIDENTIAL, COMMERCIAL. OR OTHER STRUCTURES constructed of masonry, or precast concrete, with wood frame floors or roofs, Seller shall, unless exempt, provide to Buyer a copy of “The Commercial Property Owner’s Guide to Earthquake Safety” (Government Code !j§8893-8893.5). (2) PRE-1960 PROPERTIES: If the Property was built prior to 1960, and is a mixed-use Property which includes 1-4 DWELLING UNITS of conventional light frame construction, Seller shall, unless exempt, within the time specified in paragraph 346(7), provide to Buyer (a) a copy of the “Homeowner’s Guide to Earthquake Safety,” and (b) written disclosure of known seismic deficiencies (Government Code §§8897-8897.5). (3) ALL PROPERTIES: If the booklets described in paragraphs 130(l) and 13D(2) are not required, Buyer is advised that they are available and contain important information that may be useful for ALL TYPES OF PROPERTY (Civil Code §§2079.8 and 2079.9). E. ENVIRONMENTAL HAZARDS BOOKLET: The booklet, “Environmental Hazards: Guide for Homeowners and Buyers,” is published by the California Department of Real Estate, and contains information that may be useful for ALL TYPES OF PROPERTY (Civil Code 52079.7). F. OTHER: 13 I r-l,,,,,.,, 15. RETROFIT: Compliance with any minimum mandatory government retrofit standards, including but not limited to energy and utility efficrency requirements and proof of compliance, shall be paid for by @ Buyer, 0 Seller. 16. ENVIRONMENTAL SURVEY: (If initialled by afl parties.) Buyer’s Inilials Seller’s Iniliah --!----L-- Within 2 days following acceptance, Buyer shall be provided with a phase one environmental survey report paid for and obtained by 0 Buyer, @ Seller. Buyer, within the time specified in paragraph 348(5), shall provide Seller with written notice of any Item drsapproved. 17. ENVIRONMENTAL HAZARD CONSULTATION: Buyer and Seller acknowledge: (1) Federal, state and local legislation impose liabrlrty upon exrsting and former owners and users of real property, in applicable situations, for certain legislatively defined, environmentally hazardous substances- e (4) Buyer and Seller are each advised to consult wrth , I technical and legal experts concerning the existence. testing, discovery, location and evaluation of/for, and risks posed by, environmentally hazardous substances, If any, located on or potentially affecting the Property. 18. AMERICANS WITH DISABILITIES ACT: On July 26, 1990 the Americans With Disabilities Act of 1990 (ADA) was signed into law. This federal CIVII rights legrslahon prohibits discrimination against individuals with disabilities. The ADA affects almost all commercial facilities and public accommodatrons. Resrdentral properties are not typically covered by the ADA, but may be governed by Its provisions if used for certain purposes. The ADA can require, among other things, buildings to be made readily accessible to the disabled. Different requirements apply to new construction, alterations to existing burldmgs, and removal of barriers in existing buildings. Compliance with the ADA may require significant costs. Monetary and injunctive remedies may be incurred If the Property “&)a&& “45 \S”&! Se\\cJ? l-cl% no ob\K&m .-~ I <. ., . [:e>i: - I, brmq prop er4-q 1i7-b compIl~‘~e mi-kh /US. Buyer and Seller acknowledge receipt of copy of this page, which constitutes Page 4 of _~ Pages. Buyer’s Initials ( ) ( .) Seller’s In&s ( ) L-- 1 ,- OFFICE USE ONLY nn,,-.,?“. a,-t3--Fv--- -~ Sucqect i'!openy Address: lg. CONDITION OF PROPERTY: Initial ONLY “A” or “8,” below. (Do not initial both): m substantially the same condition as on the paragraphs 8 and 34. ectlon do NOT eliminate Seller’s obligations under this warranty, un Buyer’s Initials Seller’s Initials ----L-L 6. ‘AS-IS” CONDITION: (If 6 is initialled, do NOT initial A.) Property is sold “AS IS” in Its present condition. WIthout warranty. Seller shall not be responsible for making corrections or repairs of any nature except: - removal of hazardous waste. Buyer retains the right to disapprove the condition of the Property based upon items discovered in Buyer’s Inspections under paragraph 8. SELLER REMAlNS OBLIGATED TO DISCLOSE ADVERSE MATERIAL FACTS WHICH ARE KNOWN TO SELLER AND TO MAKE OTHER DISCLOSURES REQUIRED my LAW. 20. SELLER REPRESENTATION: Seller warrants that Setter has no knowledge: (a) of any current pending lawsuit(s), investigation(s). inquiry(les), actions or other proceeding(s) affecting the Property or the right to use and occupy it; (b) of any unsatisfied mechanic or materialman lien(s) affectmg the Property; and (c) that any tenant of the Property is the subject of a bankruptcy. If Seller receives any such notice prior to close of escrow, Seller shall Immediately notify Buyer. Buyer, within the time specified in paragraph 348(4), shall provide to Seller written notice of disapprovat. of all personal property of Seller currently used i pecified in paragraph 348(7). Buyer, within the warranty of condition, 22. PERMITS: If in Seller’s possession, Seller, within the time specified in paragraph 3480, shall deliver to Buyer copies of all permits and approvals conceining the Property obtained from any governmental entity, including but not limited to. Certificates of Occupancy, Conditional Use Permits, Development Plans, and licenses and permits pertaining to the operation of the Property. 23. STRUCTURAL MODIFICATIONS: Seller, within the time specified in paragraph 348(7), shall disclose to Buyer in writing any known structural additions or alterations, or the installation, alteration. repair, or replacement of significant COmpOnentS of the structures upon the Property. Buyer, within the time specified in paragraph 348(4), may notify Seller in writing of disapproval. 24. GOVERNMENTAL COMPLIANCE: (a) Within th8 time specified in paragraph 348(T). Seller shall disclose to Buyer any improvements. additions, alterations, or repairs (“Improvements”) made by Seller or known to Seller to have b88n made without required governmental permits, final inspections, and approvals. (b) In addition, Seller represents that Seller has no knowledge of any notice of violations of City, Cdunty. State, or Federal building, zoning, fire, or health laws. codes, statutes. ordinances, regulations. or rules filed or issued against the Property. If Seller receives notice or is made aware of any of the above violations prior to close of escrow, Seller shall immediately notify Buyer in writing. (c) Buyer shall. within the time specified in paragraph 348(4), provide to Seller written notice of any items disclosed in (a) or (b) which Buyer disapproves. 25. SURVEY, PLANS AND ENGINEERING DOCUMENTS: Seller. within the time Specified in paragraph 346(i)), shall, at no cost to Buyer. deliver to Buyer copies of surveys, plans, specifications and engineering documents, if any, prepar8d on Seller’s behalf or in Seller’s possession. Buyer, withm the time spectfied notify Seller in writing of disapproval. ‘26. r or (4) change the status of t of such proposed changes. Buyer, within the time specified 27. eller. within the time specified in paragraph 3480. shall make available to Buyer for inspection and review: (1) all current leases, rental agreements, service contracts and other agreements pertaining to the operation of the Property; (2) a rental statement including names of tenants, rental rates, period of rental. date of iast rent increase, security deposits, rental concessions, rebates or other benefits, if any, and a list of d8finqu8nt rents and their duration. Seller represents that no tenant is entitled to any rebate, concession, or other benefit except as Set forth in the documents. Seller represents that the documents to be furnished are those maintained in the ordinary and normal course of business. Buyer. within the time specified ified in paragraph 348(g), s Buyei and Seller acknowledge receipt of copy of this page, which constitutes Page 5 of ~ Pages. Buyer’s Initials ( 1 L-.--- ) Seller’s Initials ( I( 1 3F4OKER'SCOPY COMMERCIAL REAL ESTATE PURCHASF C:T)NW?A~T fc-n# l * - * pr r m’ -’ UUMMf?Hf:l”’ CII - 278e- 2Z’ ~.-~S_L-CARL~BM-- ~- _ Subject Properly Address. - -- -~ -~.-_ _.- -.. -..I9 - D DAMAGES: (If initialled by all parties.) B. Seller shall retain, as liquidated da mixed-use primarily consisting of a dwelling with no mor residence, then (1) the amount retained shall be no more EIPT FOR INCREASED DEPOSIT/LIQUIDATED DAMAGES (C. er and Seller, judicial decision, or arbitration award. 31. MEDIATION OF DISPUTES: BUYER AND SELLER AGREETOMEDIATEANY DISPUTE OR CLAIM BETWEEN THEM ARISING OUT OF THIS CONTRACT OR ANY RESULTING TRANSACTION BEFORE RESORTING TO ARBITRATION OR COURT ACTION. Mediation IS a process,in whrch partres attempt to resolve a dtspute by submitting it lo an impartral, neutral mediator who is aulhorized lo facrlilate the resoluhon of the dispute but who IS not empowered to impose a settlement on the parties. Medration fee, 11 any, shall be divided equally among the parties involved. Before the mediation begins, the parties agree lo srgn a document lrmrhng the admrssibilily in arbitration or any civil action of anything said, any admission made, and any documents prepared, in the course of the medrahon. consrstent wrth Evrdence Code §1152.‘5. In addition. if paragraph 33 is initialled by Broker(s), Buyer and Seller agree to mediate drspules or claims involving an mrlrallrng Broker. as defined by that paragraph, consistent with this provisron. The election by Broker(s) to initial or not initial paragraph 33 shall not affect the applrcabrlity of thus mediation provision between Buyer and Seller and shall not result in the Broker(s) being deemed parties lo the purchase and sale agreement. IF ANY PARTY COMMENCES AN ARBITRATION OR COURT ACTION BASED ON A DISPUTE OR CLAIM TO WHICH THIS PARAGRAPH APPLIES WITHOUT FIRST ATTEMPTING TO RESOLVE THE MATTER THROUGH MEDIATION, THEN IN THE DISCRETION OF THE ARBITRATOR(S) OR JUDGE, THAT PARTY SHALL NOT BE ENTITLED TO RECOVER ATTORNEY’S FEES EVEN IF THEY WOULD OTHERWISE BE AVAILABLE TO THAT PARTY IN ANY SUCH ARBITRATION OR COURT ACTION. However, the filing of a judicial action lo enable the recording of a notice of pending action, for order of attachment, receivership, injunction. or other provisional remedies, shall not in itself constitute a loss of the right lo recover attorney’s fees under this provision. The following matters are excluded from the requirement of mediation hereunder: (a) a judicial or non-judicial foreclosure or other action or proceeding lo enforce adeed of trust. mortgage. or installment land sale contract as defined in Civil Code 52985, (b) an unlawful detainer action, (c) the filing or enforcement of a mechanic’s lien, and(d) any matter which is within the jurisdiction of a probate court. 32. ARBITRATION OF DISPUTES: Any dispute or claim in law ore ui between Bu er and Seller arising out of this contract or any resulting transaction which is not settled through mediation shall be d pg&&&#&* r;Td;hg * d k)i%tion and not by court action, except as provided by California law for judicial review of arbitration proceedings. In addition, if paragraph 33 is initialled by Broker(s), Buyer and Seller agree to arbitrate disputes or claims involving an initialling Broker, as defined by that paragraph, consistent with this provision. The election by Broker(s) to initial or not initial paragraph 33,shall not affect the applicability of the arbitration provision between Buyer and Seller, and shall not result in the Broker(s) being deemed parties to the purchase and sale agreement. The arbitration shall be conducted in accordance with the rules of either the American Arbitration Association (AAA) or Judicial Arbitration and Mediation Services, Inc. (JAMS). The selection between AAA and JAMS rules shall be made by the claimant first filing for the arbitration. The parties to an arbitration may agree in writing to use different rules andlor arbitrator(s). In all other respects, the arbitration shall be conducted in accordance with Part Ill, Title 9 of the California Code of Civil Procedure. Judgment upon the award rendered by the arbitrator(s) may be entered in any court having jurisdiction thereof. The parties shall have the right to discovery in accordance with Code of Civil Procedure 51283.05. The following matters are excluded from arbitration hereunder: (a) a judicial or non-judicial foreclosure or other action or proceeding to enforce a deed of trust, mortgage, or installment land sale contract as defined in Civil Code 52985, (b) an unlawful detainer action, (c)the filing or enforcement of a mechanic’s lien, (d) any matter which is within the jurisdiction of a probate or small claims court, and (e) an action for bodily injury or wrongful death, or for latent or patent defects to which Code of Civil Procedure $337.1 or $337.15 applies. The filing of a judicial action to enable the recording of a notice of pending action, for order of attachment, receivership, injunction, or other provisional remedies, shall not constitute a waiver of the right to arbitrate under this provision. “NOTICE: BY INITIALLING IN THE SPACE BELOW YOU ARE AGREEING TO HAVE ANY DISPUTE ARISING OUT OF THE MATTERS INCLUDED IN THE ‘ARBITRATION OF DISPUTES’ PROVISION DECIDED BY NEUTRAL ARBITRATION AS PROVIDED BY CALIFORNIA LAW AND YOU ARE GIVING UP ANY RIGHTS YOU MIGHT POSSESS TO HAVE THE DISPUTE LITIGATED IN A COURT OR JURY TRIAL. BY INITIALLING IN THE SPACE BELOW YOU ARE GIVING UP YOUR JUDICIAL RIGHTS TO DISCOVERY AND APPEAL, UNLESS THOSE RIGHTS ARE SPECIFICALLY INCLUDED IN THE ‘ARBITRATION OF DISPUTES’ PROVISION. IF YOU REFUSE TO SUBMIT TO ARBITRATION AFTER AGREEING TO THIS PROVISION, YOU MAY BE COMPELLED TO ARBITRATE UNDER THE AUTHORITY OF THE CALIFORNIA CODE OF CIVIL PROCEDURE. YOUR AGREEMENT TO THIS ARBITRATION PROVISION IS VOLUNTARY.” “WE HAVE READ AND UNDERSTAND THE FOREGOING AND AGREE TO SUBMIT DISPUTES ARISING OUT OF THE MATTERS INCLUDED IN THE ‘ARBITRATION OF DISPUTES’ PROVISION TO NEUTRAL ARBITRATION.” Buyer’s lmtials Seller’s Initials ---AL-- --l!-- 13. ed.) Any Broker who initials below tract or any resulting transaction, arising out of this contract or any kerage firm and any licensed persons affiliated with that (InItIala) (Imtialr) Buyer and Seller acknowledge receipt of copy of this page, which constitutes Page 6 of ___ Pages Buyer’s Initials ( i ( ) Seller’s lnrtials ( IL-----) BROKER’S COPY 4 hlllc!cl Plopc'lly ~cldlcvx 2787 Sta'- Str ?, Carlsbad , 19 14. CONTINGENCIES/COVENANTS: METHODS OF SATISFACTION/REMOVAL, TIME FRAMES, DISAPPROVAL/APPROVAL: A. METHOD OF SATISFYING/REMOVING CONTINGENCIES: Contingencies are to be satisfied or removed by one of the following methods: (1) PASSIVE METHOD: IF BUYER FAILS TO GIVE WRITTEN NOTICE OF DISAPPROVAL OF ITEMS OR OF CANCELLATION OF THIS AGREEMENT WITHIN THE STRICT TIME PERIODS SPECIFIED IN THIS AGREEMENT, THEN BUYER SHALL CONCLUSIVELY BE DEEMED TO HAVE COMPLETED ALL INSPECTIONS AND REVIEW OF APPLICABLE DOCUMENTS AND DISCLOSURES AND TO HAVE MADE AN ELECTION TO PROCEED WITH THE TRANSACTION WITHOUT CORRECTION OF ANY ITEMS WHICH THE SELLER HAS NOT OTHERWISE AGREED TO CORRECT, OR ER AND SELLER INITIAL THIS PARAGRAPH, THEN PARAGRAPH 34A(l) SHALL NOT APPLY TEMS OR REMOVAL T TO PROCEED ENT BY GIVIrIG B. ler agree to be bound by the following lime periods: BUYER HAS the following number of days lo take the action specified, BEGINNING ON 7HE DATE FOLLOWING ACCEPTANCE OF THE OFFER (1) 3o (2) 30. Days Buyer Inspections of Properly (complete Inspections. except GEOLOGIC, and give notice of disapproval) (paragraph 8). Days Buyer Inspections of Property (complete GEOLOGIC INSPECTIONS and give notice of disapproval) (paragraph 8). (3) ~- Days .._ ~~- .~ -..-- ------.---- ____.__ ._____. _________ __.__ ___-.----. BUYER HAS the following nurnber 01 days to DISAPPROVE the items listed below, BEGINNING ON THE DATE OF BUYER’S RECEIPT OF EACH ITEM. (4) Days Existing Loan Documents (ijaragraph IG), Preliminary (Title) Report (paragraph 5), Geologic/Seismic/Flood/Slate Fire Zones/Areas (paragraph 13A,B.C). Earlhrruake Guides (paragraph 13D), Seller Representation (paragraph 20), Personal Property (paragraph 21), Structural Modrlications (pari,graph 23). Governmental Compliance (paragraph 24), Survey, Plans (paragraph 25), Changes During Escrow (paragraph 26). Rental Agre::ments (paragrap: 27). Income/Expense Statements (paragraph 28). Estoppel Certificates (paragraph 29). (5) l O. Days Environmental Survey (pamgraph 16). Engineering, (6) ?!- Days __-_---.._~-._ building code inspections, zoning land use and feasibilityor intended use. -___ __- .__ SELLER HAS the following number of days to “ROVIDE to Buyer, as applicable, the information listed below, BEGINNING ON THE DATE FOLLOWltJG ACCEPTANCE OF THE OFFER: (7) 3 0 IJay!; ~oologic:/Sc?isr~~ic:IT)ootllSlslo rim Zor,os/Aroas Disclosures, it npplicahtn (paragraph 13A.B.C). Commercial Property Owner’s Goitln to Enrtlrcfuakc Safely and/or Ilorncow~~or’s GUI& lo Enrtlrquokc Salcty (paragrapl~ 130). Porsot~al Proparty (paragraph 21). Pcrmrts (paragraph 22), Struclural Modifications (paragraph 23). Governmental Compliance (paragraph 24), Survey, Plans (paragraph 25), Rental Agreements (paragraph 27). Income/Expense Statements (paragraph 28). Estoppel Certificates (paragraph 29). (a) 3-O Days &?hase-Qn.% Environmental surv_ey__-re_p_ark, __-. _. .__. The items listed below, as applicable, shall promptly be requested and upon receipt provided to Buyer: ,(9) ~%%#$~%%&~~f%%@@%~~. Preliminary (Title) Report (paragraph 5)d~~~~~~&$& (‘0) --.__ -- ~.-.__--~----- __--..--__-~.- __-.---- C. DISAPPROVAL/APPROVAL OF ITEMS: If. within the lime specified, Buyer provides written reasonable disapproval lo Seller of any ilem for which Buyer has a disapproval right, Seller shall respond in writing within . . ..I(! days alter receipt 01 Buyer’s notice. If Seller is unwilling or unable to correct the items disapproved by Buyer, then (a) Buyer may cancel this Agreement by giving written notice of cancellation to Seller within -5 days (after receipt of Seller’s response, or after expiration of the time for Seller’s response, whichever occurs first), 6, or(b) if paragraph 34A(2) is initialled, then Buyer shall provide Seller with a writlen notice of eilher cancellation or election to proceed. If Buyer elects lo proceed with the transaclion without Seller’s correction of items. Buyer shall assume all liability, responsibility, and expense foi repairs or corrections, including the expense of compliance with governmental agency requirements. This does not, however, relieve the Seller of any contractual obligations to repair or correct items otherwise agreed upon D. FOR ALL TIME PERIODS: Buyer and Seller understand lhat time periods can be changed only by mulual written agreement. is the agent of (CHECK ONE ONLY): I11 the Seller exctusiv Selling Agenl- gent 01 (CHECK ONE ONLY): Real Estate Agency Rela 36. BROKERAGE: Neilhcr es 01. or for any olher reason tale broker (individual or corporate). ngc?irl roperty, including, but Irons. cor~s~rltnlionr.. nrltl negotiations tondirlg lo Ihir, Agrcolrrcnl. Buynr alItI Sellor l?iICtl ngr spccifictl herein, ni~d tl.+:ir agents. lrorn nntl ngniiist afly cost’;. r:xf)cnsc!;. or li;lhilily for cornf)aci-,ntiorl d representation in this paragraph: 37. AUTHORITY: Any person or persons signing thi$ Agreement represents that such person has full power and authority to bind lhat person(s) principal arrd that the designated Seller and Buyer have the full authorily to enler into and perform this Agreement. Entering into this Agreement and the completion of the obligations pursuant to this conlract doe- not violate any Articles of Incorporation. Bylaws, Partnership Agreement, or other document governing the activity of either Seller or Buyer. 38. SUCCESSORS AND ASSIGNS: This Agreement shall be binding upon and inure to the benefit of Seller and Buyer and their respective successors and assigns, except as otherwise provided herein. 39. PROFESSIONAL CONSULTATION: BUYER AND SELLER ACKNOWLEDGE THAT THEY ARE ADVISED TO CONSULT APPROPRIATE PROFESStONALS CONCERNING ANY AND ALL EXISTING OR POTENTIAL LEGAL, TAX. AND ENVIRONMENTAL RESPONSIBILITIES, IMPLICATIONS. AND IMPACTS TO THEM RESULTING FROM THIS AGREEMENT. g. 10. COPIES: Seller and Buyer each represent that copies of all reports, documents, certificates, approvals, and other documents which are furnished to the other are true. correct, and unaltered copies of the original documents II the originals are in the possession of the party furnishing same Buyer and Seller acknowledge receipl of copy of this page, which constitutes Page’7 of Pages Buyer’s Initials ( ) ( ) Seller’s Initials ( ) ( 1 --~-. OFFICE USE ONLY -- Reviewed by Rrokr?r or Dosi9rlet? Oat.5 L__.-..---.-_- -. - - -~- ~-_ i *( lr :l,f I! ‘,,I I MmFER 97 cp . . . . . . . ...? . . . . . ..- “. -CT I. . -.,r ,-.,I ..- ,...v..--. _ . sut,,?ci’ F,op;‘rty Address: _ ~-18~~._st+ e-M %ree&Xar&&Bd ____-----.- - -__--_ -- * 19 _._- 42. GOVERNING LAW: This Agreement shall be governed by the laws of the state of California. 43.mSYSTEM: If Broker is a Participant of a Property Data SystemBroker is authorized to report, upon the close of escrow. the &&p&e+ terms, and financing for publication, dissemination, mto~+pDateSystem, 11s parent entity, authorized members, participants, L given contrary written instructions by Buyer or Seller. OTHERTERMSANDCONDITIONS: Buyer aqrees to cooperate in a 1031 exchanqe - 44. at Seller's election. 45. 46. --_- ~- -.-. -.- - -. -____ __- -- -___- -.___ ---- - -.-- _____ _.__ ---.- -- - TIME OF ESSENCE; ENTIRE CONTRACT: Time is of the essence. No extension of time or waiver for performance of any act or obligation shall be deemed an extension of time or waiver for any other act or obligation. All prior agreements between the parties are incorporated in this Agreement which constitutes the entire contract. Its terms are intended by the parties as a final, complete and exclusive expression of their agreement with respect to its subject matter and may not be contradicted by evidence of any prior agreement or contemporaneous oral agreement. The captions i’n this Agreement are for convenience of reference only and are not intended as part of this Agreement. This Agreement may not be extended, amended, modified, altered, or changed in any respect whatsoever except by a further agreement in writing executed by Buyer and Seller. NOTICES: Whenever any Party shall give notice pursuant to this Agreement, each such notice shall be in writing and shall be delivered personally or by facsimile or by mail. posta e prepaid, addressed as set forth below. ToSELCER:RlcharJ Bauer, Dorothy & Barney TO BUYER: Name RoSSr c/o Don Adkinson, Esq. Carlsbad Redevelopment Agency Addressl~~~~~(J-~~~~r~~~~~.ISte~--~- Name P-.c/l~artin Oren@-------..--. ~ Irvine;- %A--.-.92-6TZ--- ~.--.- . ..----- - Address ---~-20~5-.Las-Pa~aS~--~-- --_--~~~_- -. _- Fax-- _ ~~~~~~~~~~~~~~~~~~~ ____._ _ _~__. _ _ _. -~--LarlsbadFLIA42D_O~--~ Fax .___ ____ _ -(-7 6 0 )_a __ If either notice address above has been left blank. notice shall be delivered to the address set fortfi below the ‘s signature of acceptance. Either pnrfy mny change its notice nddrcss by providirlg notice tfrcreof lo the other party. DEFINITIONS -___- The following terms, whenever used in this Agr ?ement, shall have the meaning as set forth below: Acceptance: The date on which the offer, or last counter offer, is signed and communicated to the offeror consistent with the offer or counter offer. Agreement: Tffe terms of this offer plus those of any counter offer, supplement, exhibit and/or addendum. Broker: Any broker or brokorngc firm nnmcd in Illis Agreemnnf and any licensee acting tfirougfi sucfi broker or brokerage firms. Days: Calendar days. Properly: The property to be acquired by the Buyer as a result of this Agreement. OFFER This is an offer to purchase the Property. All paragraphs with spaces for inftials by Buyer and Seller are incorporated in this Agreement only if initialled by both parties. If only one initial& a counter offer is required until agreement is reached. Unless acceptance is signed by Seller and a signed copy delivered in person, by mail. or facsimile, and personally received by Buyer, or by Martin Orenvak, COrnme Dev. Director, who is authorized to receive it. by __JI.I&‘- #;; 3 f _ _~, 1991 at 5 -XHXPM, this offer shall be deemed revoked and the deposit shall be returned. Buyer has read and acknowledges receipt of a copy of this’ ofler and agrees to the above confirmation of agency relationships, If this offer is accepted and Buyer subsequenlly defaults, Buyer may be responsible for payment of a commission. This Agreement and any supplement, addendum, or modificalion, including any pf~ntocopy or fncsinlilc, may be cxcculcd in Iwo or rnnre countrrpnrls. all of which sfialf constitute one alid tfm snrnc wriling. deposit is acknowledged: Name Prinlcd ~_ Telephone BUYER _ _. _.._ ~.. _ _ ._ _ ~~ __ _ p-.- ~_.~_ Name Printed Title ~.. Address _. _ _ ._..___ __.. ___ _. Telephone By ___ -. ~_- .- -- ~--- -_~ _ --._-_-- - -----~~_- -~. - Name Printed _. -~ ._~ ____I_- -__-..~~ ---____ The undersigned Seller accepts the above and agr ell the Property on the above terms and c s and agrees lo the above confirmation of agency to pay compensation for se _~_ _ , Broker, and payable: (a) on recordation of the deed or other evidence of title: or (h) i revenled by default of Seller, upon Seller’s default; or (c) if completion of sale is prevented by defnull of Ruycr. only if and wfen Scllcr collnc by suit or oll~nrwir,c!. nrlrl Ihr~ri rn a11 arrruunl equal to OrW frnlf of ItIc dnrrlnges rccovc~ctf. foul not lo cxccccl ff~e nfiovo c.Jrrlficris;lliclrl. al c arid escrow exf~crises and tfro expenses of collection, if any. Seller hereby irrevocably asstgns to Broker(s) sucf~ corripen::ation from In any action. proceeding, or arbitration relating lo the payment of sucfl cornpcnsntion. the prcvalling party shall be enlii as provided in paragraph 31. Tfle undersigned Seller(s) has read, acknowledges receipt of a copy of this Agre ed copy to Buyer. Real Estate Broker y .-.-.--- - -~ --.- - -.-. me Printed ___ ~___~_ _~__ ~_- _ .~ ~- - .~._ Telephone ~_ .._ Fax. __ .~_ _ ___ .~ __ SELLER 3y .- Vame Printed 4ddress ___ SELLER By _ _;- _ ~.~ _ Name Printed Address ___ ___-__.-~-..-~ - - - .- - .~- .- Telephone ____-__ r(s) confirm(s) agency relationship(s) above. (Real Estate Brokers are not parties to the purchase and sale agreement between BU -_ - _ - - -.. _~ -_-.--_- .-~. _.____ _ By- _~._ _. _ .._~_ _~ - .-- -. - - - - - ~. Dale .~.. .-. _- ~...- _ .- - .._-.._ By . - ~- - ._ - .._ -.._ : -~ -- - - -- - .._ Dale \ Page 8 of Pages 111 ~f~~f~l~-i f r,; (;I !I ‘\’ ~- OFFICE USE ONLY - -- rl4?vloWRd by Rrokf?r nr rJos1ywr COMMERCIAL REAL ESTATE PURCHASE CONTRACT (CDL-14’PAGE 8 OF !I, “V ,.I,. IL. ,“,r\L a ,LmL I-0 1 H I L 8- “I,b, ,r\dL .e..ll” I rant, I ,,L I,.. -, ‘, r”,,.,r n I r*. h4nrrrn II FAX PIO. 7607202037 NO. of pages transmitkd PHONE #: FAX #: PHONE #: (760) 434-2810 -- FA,X#: (760) 720-2037 I -ihnka . . ---I This written message is for the exclusive use ol the addressee and may contain confidential, privileged, and nor!.-disclosable information. If the recipient ul hia IIWSW~C Is not rhe addressee, or a person responsibIe for dcliver!ng the message to the addressee, then the recipient is prohibited from reading or using this message iti any way. If you have received this message by mistake, please! call US immediately and destroy the telecopy mossagc. Housing & Redsvslopment Department l 2965 Roosevelt Street, Suite E? l CarIsbad, California 92008 NOT-13-97 WED 8~55 XM HOUSING & I;liD, 1. Nov-19-97 09:20A ‘-TCO-ESCROW FAP NO. ;7E;O7,202i.;j7 - kEXORDfN(;: itlwmmmru ‘- FIRST AMERICAN TI’fLE INS. CO. AHDwFR!mRRcoltaEDhiAtLm CARUBAD REDEVELDPMENT AOENCY Alto: Uebbic Fountala 2965 Roosevelr Strtw,StcB Ciulrbad. CA ?. 2 P.02 A,P,N.: 203*29541 and 203-295-02 I Space Abave~ilhirL~Lr Re~otder’r UscOaly , Orde;Nd.i-116168230 Esmow No. : 97.399lAS THE UNC%RSfON~DGR&ITCJR(~) DECLARE(s) l%AT DOCUMENTARY WSFER TAX 1% COk?ttl’T &jw cmptedon ful~vnluelc~~vnnc!ofIren~nr~~cumbraoctsr~ogatdmc ofrale, caxnpurcd on tuil value of party cqpveyed, or itbcorporticdarea; [ ] CiIy of CWM.. rpd FOR A VALUABLB CONSIDERATION, Receipt 61 WMCI is hereby acknawledged, RICHARD BAIJEX, a married man as his sole aad scpPrate property 8s to no undivfded 50% interest; DOROIRY ANN KCW5, a mrrrrkd woman as her MJIG wd sspuatc property lu to an undhidcd 50% idwest ha&y ORANT@) to CARWBAD It.EDEVELOPMENT AGENCY . LCYIS 1 THROUGH 4 INCUUSIYE, DLOCK ‘W OF CARLSEAD, IN TEfE Cm OF Cb.kLGlBAb, COUHTY OF SAN ZNEGO, STATE OF CALIFDRNIA, ACCORDING TO MAP THEREOF NO+ 535 FJIXD M l’l3.E OFFICE OF 7’EE COWbTY RECORDER OF SAN DIEGO COWNKY, WY 2,188s. DOROTHY ANN ROSS Mail Tax S~IUOCOIS LO: SAME AS ABOVE or Addrea Noltd Below - ---- N?V-N-97 WED 8:55 AM HOUSING & RED, - Nov-19-97 09:ZlA cTCO-ESCROW FAX N3. 76072i32ci37 P, 3 P.03 This M for offkii lItmuLl su!, NOTAAY PUWC STATE OF ARIZ~A P ----.* DAWN AEEO f - -r CP fjov-]g-gT WED 8156 AM HOUSINCI h RED, - N-v-IQ-97 C1$:21A ‘-TCO-ESCROW Fki 110. ?6072i12c;37 REcoRDIN l5.mJmm BY FIRSThMERlCANTITLE~i%t.Xk ANDwmNREc~mM&nTo! ChRtSBADWDSWCLOFMENTAClPNCY Ana: Debbie Pouritaib 2965 RoomwIt Strut, Str B Culsb6d, CA ~~~~NtoA~~t~‘UIIL~~IrI~~Y*, A.P,N+; 263-295-01 and 20349542 Order No.: 1161682-20 Eixo~ No.: 97-399x@ GRANT. DEED P, 4 P-04 THE UND6XSlONED QUNTOR(c) D&SAR.EO) 7HAT DOCU’MENTARY TRANSFER TAX IS: (IOUNTY $ I 1 cQmouttd on full valut of llrbDPItY c@nYcYcd. or iI c0~c.d on full v&e Id vht-mf l&m-or Mlcumbmces remaining at time of ask, uaincorpratcd aa; [ 1 City of .C!arhbad , aml FOR A VALUABLE CONSlDEElAnON, Receipt OF which ic hereby rch~wlcdgcd, MCHARb BAW, ~memicd mol as his sde aad 6eparde prop&y as to PII uhdivldcd 50% istuost; mm ANN ROSS, a married fRoman 8~ her rah and separate property w to an mdtvldcd 50% Interest hereby Wt.ANT(S) to c-m RlcDmLo~ AGENCY the khwhg described property in the City of Chrhd, Co~ty of San l.litgo SW of califotia; LOTS I TEXROUGR 4 INCLUSIVE, BLOCK “K” OF CARLSBAD , lN TEE CITY OFCARLSBAD, COUNTY QF SAN lU&W, S’KA’L’E Ok tAUM’~~lA, AUXUWNIi WJ b%%h’ UWAWX” NO. 535 IlLXD Ih’ m OmC!E OF TIP, COUNTY RECORDER OF SAN DIEGO COWI’Y, MAY 2,1#& RICHARD BhUER_ DOROTHY ANN RDF Mail Tax Statemcm 10: SAME AS ABOVE br Address Nucd Below NOT-19-97 WED 8:56 AM HOUSINI; & RE3. 1 Nov-19-97 09:21A -TCO-ESCROW - . . , 1 w -. CERTIFICATION FOR ACCEPTANCE OF DEED This is to certify that the interest in real property conveyed by the grant deed dated October 23, 1997, from Richard Batter to the Carlsbad Redevelopment Agency, is hereby accepted by the Housing and Redevelopment Commission of the City of Car&bad, California, pursuant to Resolution No. 289, adopted on November 19, 1997, and the grantee consents to the recordation thereof by its duly authorized officer. , DATED: November 19,1997 (SEAL)