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CC - Item 4E - Authorization to Acquire Mixed Use Property at 9734 Abilene St4., Ilk, WALLIN, KRESS, REISMAN & KRANITZ LAW OFFICES 2800 TWENTY-EIGHTH STREET, SUITE 315 SANTA MONICA, CALIFORNIA 90405-6205 TELEPHONE (3101 450-9562 FAC51MILE (310) 450-0506 TO: CHAIRMAN AND MEMBERS ROSEMEAD REDEVELOPMENT AGENCY MAYOR AND COUNCILMEMBERS CITY OF ROSEMEAD FROM: PETER WALLIN; REDEVELOPMENT AGENCY COUNSEL DATE: December 12, 2000 RE: Authorization to Acquire Mixed Use Property at 9734 Abilene Street, Rosemead, for a Purchase Price of $283,200. The subject property is adjacent to but located outside the project area for Redevelopment Project Area No. 2. However, it is within the site of the proposed Eaton Village. Robert McCoy entered into an escrow to acquire the property from Bernadette Quercio who resides and operates a dog kennel business thereon. The original sales price was $275,000 which was allocated $225,000 for the property and $50,000 for the cost of residential and business relocation. Mr. McCoy has not been able to finance the purchase price and his failure to timely close escrow has caused Ms. Quercio to incur $8,200 in charges in connection with her escrow to acquire a replacement property. McCoy has agreed to reimburse these additional costs through amendments to escrow. Ms. Quercio is still desirous of closing and has asked that the Agency bail her out of the situation. We are advised by McCoy's attorneys that he will consent to have the Agency acquire the property with its funds as his nominee. Copies of the original escrow instructions and an unsigned amendment are enclosed. If the Agency acquires as nominee the terms of Quercio's sale to the Agency would be essentially identical: -J .-T rcihase price (adjusted) of $283,200.00. DEC 12 LUU0 DEC 12 2OQJ iTRO gin. i A. WALLIN. KREss. REISMAN & KRANITz LAW OFFICES Chairman and Members Rosemead Redevelopment Agency Mayor and Councilmen City of Rosemead December 12, 2000 Page 2 2. Waiver of relocation benefits and/or all other forms of compensation to which she might be entitled when acquired by a public agency. 3. Quercio to lease back the property for four months, at $1.00 per month, to provide her time to complete improvements at the replacement location. The Agency would acquire the property free and clear of any rights or claims of McCoy to the property. An Agency can acquire property outside the project area upon the request of the City Council. This particular parcel, is integral to the proposed Eaton Village development, and would also be useful in a land assembly for any alternative commercial development at the northeast corner of Temple City Boulevard and Valley Boulevard. Recommendation: 1. That the City Council, by minute action, request the Agency to acquire the property. 2. That the Agency authorize acquisition of the property as nominee for a purchase price of $283,200.00, and authorize the Executive Director to execute escrow, instructions and related documents to effect the transaction. 1 Det-O6-2000 12:19Pm From- T-404 P.002/015 P-999 FIRST AMENDMENT TO RESIDENTIAL PURCHASE AGREEMENT (AND RECEIPT FOR DEPOSIT) THIS FIRST AMENDMENT TO RESIDENTIAL PURCHASE AGREEMENT (AND RECEIPT FOR DEPOSIT) ("First Amendment") is made and emered into as of this I Oth day of November 2000, by and between BERNADETTE P_ QUERCIO, as trustee of the Bernadette Paula Quercio Trust under Declaration of Trust dated March 21, 1997 ("Seller"), and ROBERT MCCOY, an individual, or assignee ("Buyer'l with reference to the following recitals of fact: RECITALS A. Seller and Buyer entered into that certain Residential Purchase Agreement (and Receipt for Deposit) dated as of April 28, 2000 (the "Purchase Agreement") pursuant to which Seller agreed to sell and Buyer agreed to purchase that certain real property located in Los County, California known as 9734 Abilene Street, and more particularly described in the Purchase Agreement. All capitalized terms used herein and not otherwise defined shall, have Elie same meaning set forth in the Purchase Agreement. B. Seller and Buyer now desire to amend the Purchase Agreement as set forth herein. NOW, THEREFORE, in consideration of the foregoing, and of the conditions, terms, covenants and agreements set forth herein and of other good and valuable consideration, the receipt and'sufliciency of which are hereby acknowledged, the parties hereto hereby agree that the Purchase Agreement is amended as follows: A_G REEMBNT , 2000. 1. Closine. The Closing shall be 2. Credit. Upon the Closing, Buyer shall pay to Seller through escrow an amount equal to 56,200. 3. City Waiver. Concurrently with Seller's execution of this First Amendment, Seller shall execute and deliver to Buyer one (1) original of the Acknowledgement and Waiver Regarding Relocation Benefits and Just Compensation in the form attached hereto as Exhibit A (-City Waiver"). Delivery of the City Waiver by Seller to Buyer shall be a condition to Closing. 4. Lease. Upon the Closing, Seller and Buyer shall execute and deliver one (1) original of the Residential Lease, the form of which is attached hereto as Exhibit B. 5. Full Force and Effect. The Purchase Agreement is modified, amended and supplemented only, to the extent set forth herein, and as so modified, amended and supplemented, shall remain in full force and effect between Seller and Buyer. In the event of any conflict between the provisions of this First Amendment and those of the Purchase Agreement, the tetras of this First Amendment shall prevail. 202791570-~ DeC-06-2000 12:19pm From- T-404 P1.003/015 F-999 6_ Counterparts. This First Amendment may be executed in several counterparts, each of which shaA be deemed to be an original, and all of which together shall be deemed to be one and the same instrument when each party has signed one such counterpart. 7. Facsimile- This First Amendment may be delivered To Escrow and the other party by facsimile transmission. IN WITNESS WHEREOF, the parties hereto have executed this First Amendment as of the daze first set forth above. "Seller" `.Buyer" BERNADETTE P. QUIERCIO, ROBERT MCCOY, As trustee of the Bernadette Paula An individual, or assignee Quercio Trust under Declaration of Trust dated march 21, 1997 20279157v2 -2 I Dec:0,6-2000 12;I9am From- T-404 P. 034/015 F-999 EXHIBIT A CITY WAIVER Exhibi> A =19 MQ 1 Dac-Q6-2000 12:Npm From- T-404 P.001/015 F-505 ACKNOWLFDGEMENTAND WAIV&R REGARDING RELOCATION BENEFITS AND JUST COMPENSATION THIS ACKNOWLF-I)GEMENT AND wAWE.RREGARDING RELOCATION ~ BENEFITS AND JUST COMPENSATION ("Agreement") is made as of November 10, _OOU by BERNADETTE P- QU8RCI0, as uustee of the Bernadette Paula Quercio Trust under 21, 1997 ("Seller") with reference to the following recitals of Declaration of Trust dated March fact: RECITALS A. Seller and Robert McCoy, an individual, or assignee ("Buyer") have entered into a Residential Purchase Agreement (and Receipt for Deposit) dated as of April 28, 2000, as amended by that certain First Amendment to Residential Purchase Agreement (and Receipt for Deposit) dated November 10, 2000 by and between Seller and Buyer C'Purchase Agreement") concerning certain real property in the City of Rosemead, California ("Property"). B_ Buyer has applied to the City of Rosemead, California ("City") and/or its Redevelopment Agency ("Agency") for assistance in redeveloping the Property together with other neighboring properties, which requested assistance would include. use of the power of eminent domain to acquire properties for redevelopment or parking purposes. NOW, THEREFORE, in consideration of the payment of the purchase price by Buyer pursuant to the Purchase Agreement, Seller agrees as follows for the benefit of Buyer, the City and the Agency: AGREEMENT 1 _ Seller acknowledges that it is aware that persons displaced as a direct result of acquisition of property for a public project have a right to be reimbursed for their moving expenses and to receive other relocation assistance and benefits pursuant to Government Code §7260 et seq, unless waived. 2. Seller acknowledges that it is aware that when property is acquired for a public project by eminent domain or in connection with inverse coo d eomnnhave ati 8 tjury a determine the ~e and occupants are entitled to have the property appraised amount that constitutes just compensation for the property being acquired, including, but not limited to, compensation for the realty, for improvements pertaining to the realty and for any goodwill loss, unless waived. 3. Seller agrees that it has accepted the purchase price and other consideration -1- 20279158v1 1 Dec-06-20DO 12:20am From- T-404 P-006/015 F-099 provided for in the Purchase Agreement as a full and complete settlement of any and all amounts to which it might be entitled were the property acquired by a public entity by eminent domain, inverse condemnation, or otherwise, including the value of the realty, of improvements pertaining to the realty, compensation for any goodwill loss and for costs, attorneys fees, interest or other claims compensable in an eminent domain or inverse condemnation proceeding and including any claims for relocation benefits to which Seller might be entitled pursuant to Government Code Sections 7260 et seq.. 4. Seller agrees that notwithstanding the potential for being compensated for relocation benefits and to have a jury determine just compensation as set forth above, SELLER, ON BEHALF OF ITSELF, HIMSELF, HERSELF, AND ITS, HIS AND HER SUCCESSROS AND ASSIGNS AGREES THAT IT 1S INELIGIBLE FOR AND/OR DOES HEREBY FOREVER WAIVE, RELEASE, DISCHARGE AND DISCLAIM ANY AND ALL RIGHTS TO AND CLAIMS OF ANY NATURE WHATSOEVER KNOWN OR UNKNOWN, CONTINGENT OR NON-CONTINGENT, ANTICIPATED OR UNANTICIPATED, WHICH ANY OF THEM EVER HAD OR NOW HAS OR WILL HAVE AGAINST THE AGAINST BUYER, THE CITY, THE AGENCY OR ANY OTHER PUBLIC ENTITY INVOLVED IN ASSISTING BUYER IN THE ACQUISITION OR REDEVELOPMENT OF THE PROPERTY, AND THEIR SUCCESSORS AND ASSIGNS ("Released Parties"), ARISING DIRECLTY OR INDIRECTLY OUT OF OR BASED UPON, OR IN ANY WAY CONNECTED WITH: A. RELOCATION BENEFITS TO WHICH SELLER MAY BE ENTITLED UNDER GOVERNMENT CODE SECTION 7260 ET SEQ.; and b. JUST COMPENSATION FOR THE PROPERTY, INCLUDING CLAIMS FOR THE VALUE OF THE PROPERTY, IMPROVEMENTS PERTAINING TO THE REALTY, GOODWILL LOSS OR ANY OTHER CLAIMS COMPENSABLE IN EMINENT DOMAIN OR INVERSE CONDEMNATION PROCEEDINGS AND THE RIGHT TO HAVE SUCH CLAIMS APPRAISED AND TO HAVE A JURY DETERMINE THE AMOUNT OF SUCH CLAIMS (collectively, the "Released Claims"). 5. Seller acknowledges that it, he or she is familiar with and voluntarily waives any right or benefit arising from Section 1542 of the Civil Code of the State of California which provides as follows: "A general release dues not extend to claims which the creditor does not know or suspect to exist in his favor at the time of executing the release, whfcb if known by him must have materially affected his settlement with the debtor." -2- 20279158x1 1 Dec-00-2000 12:20om From- T-404 P. 007/015 F-999 In connection with such waiver and relinquishment, Seller is aware that it, he or she, or its, his or her attorneys or agents tnay hereafter discover facts in addition to or different from those which the Seller now knows or believes to exist with respect to the subject matter of this Agreement , but that it is each Seller's intention to hereby fully, finally, and forever release all of the claims, disputes and differences, known or unknown, suspected or unsuspected, that any Seller may have or may hereafter acquire against any of the Released Patties, resulting from or in any way related to the Released Claims. This Agreement shall remain in effect as a full and complete release notwithstanding the discovery or existence of any such additional or different facts. Seller's initials: 6. Seller shall not commence, voluntarily aid, or prosecute, or cause to be commenced or prosecuted, against any of the Released Parties any action or proceeding in connection with or arising our of any Released Claim. 7.. The term "successors" as used in this Agreement means successors, heirs, devisees, legatees, assignees, nominees, parent, subsidiaries, affiliated corporations, directors, officers, shareholders, agents, servants, employees, insurers and underwriters, and all persons acting by, through, under, or in concert with them, or any of them. 8. Seller represents and warrants to the Released Parties that it, he or she has not assigned or otherwise transferred any interest in any Released Claim and further agrees to indemnify, defend and hold the Released Parties harmless from any liability, claims; demands, costs, expenses, and attorneys' fees incurred as a result of any other party asserting any such right or claim under any such assignment or transfer given by Seller. 9. This Release shall be governed by and construed in accordance with the laws of the Stare of California- 10. In the event that any of die Released be entitled to to enforce its an award of itsghu under this Agreement, the prevailing parry in such action shall reasonable attorneys' fees and costs. 11. This Agreement contains the complete and exclusive expression of the tarns provided herein, which terms shall not be contradicted by pmof of prior agreements or contemporaneous oral agreements, nor shall they be explained or supplemented by evidence of consistent additional terms. 12. This Agreement may be executed in one or more counterparts, each of which shall -3- 2O279159v1 Der 0.6-2000 12:21pm From- T-404 P.006/015 F-BBB be deemed an original, but all of which Together shall constitute one and the same in=ment. IN WITNESS WHEREOF. the Seller has caused this Agreement to be duly executed and delivered as of the date first written above. DATED AS OF November 10, 2000 sFRNADBTTE P QUIERCIO, as Trustee of the Bernadette Paula Quercio Trust under Declaration of Trust dated March 21, 1997 202791i8v1 Dec-06-2000 12:21om From- T-404 P-009/015 F-999 EXHIBIT B LEASE 20279157v2 -4 Dec-05-2000 12:21 Pm FrDn T-404 P.010/015 F-BBB //➢/////Y/lA1UU►1iV~mlli////iiiir.~~t,~~~•iiiiiiiii~~~~.......-~ RESIDENTIAL LEASE (Long Faun) 1. PARTIES: November ip20o0 Tors Lease 1s maile and entered into this 1st 04y al oy and Doman Eaton Village Spo20119 C Ater LLC a California limited liabillry company (nitrOrrlanOf referred to as "Landlord") and Bernadette P. Ouercio, as Trustee of the Bernadette P. Quercio _ st under Declarer iop of Trust dateI Wcb 21, 1997 (~aralnaAar raierred to as"Tenan(' 1 Landlord nereDy Naeef t0 Tenam and TonN hereby I93s03 cram (anglor0, on 1M leant and c0ntlrlq"4 fl0feinallsf Se! 10nn, trial [edam real propeny and Ins residence located inereon situated in the City of Rosemead County 01 IAA SulI6 01 Californla commonly known as 9734 Abilene Street Ims .sfsn w•w~ e. The llrm 01 this (.Oise ehall a for four (a) 'mont" W $ efoUnt DnCe, as tyre ,jo rdmmencing an d andanana on the date rhicb is four (O) 1. RENT: one ii) Tenant snail pay to Landlord AS rent for ins Premises. Ins cum of (f - ) dollars per month. in advance on the first day 01 W ma"th diming lM term hOreol. Rent trhall be payaDle wlThoul notice Df oemaN and wdhoul hey deduttmn, oH•sal, or anTerrant in Wain money of ins united States 10 (fie undlora at the address sialeo "tram for notices or to Svc" Door parson or such our pieces as ins Landlord may designate to Tenam in writing mouths after the Copmenoement Date. The term "Commaocement Date" sball mean the name date as the "Close of Escrow", as such term jr defiaed in that certain Resldeutlal Purchase Agreement (and Receipt for Deposit) dated April 78, 7D00 by and between Tenant, as seller, and Robert McCoy, Landlords predecessor in Luterest, as avisvted- soicarsfoam elNiESDnre.VirnVlfwwi-M mp q>,w.a.wns .c nwawaa. tmeMl Mr~d M41-A"W., Wa, eau7{e.a~~ AO .w...sl e wr lw+eY Y .met.+MfM~ 11Me alwVfau. WAW aMI.wMe'ee. w.IIP.Ww HO .w 1~P1U mw " awmenwa. w wwnp nww w .Mi wt eypew • w uwaawtOrl r "MY s rb en M AYIO w a 7riam ~ Dec-06-2000 12:21 Pm From T-404 P-011/015 F-099 a. SECURITT D1RtOW: -o- Tenant shall 0eposn who Landlord upon the execution of this Lau the sum of (S _0- ) Collars u a securtly Oepesii fell ins Tenant's faithful Worinam of the provisions of this Luse. 0 Tenant Ibis to pay rOm or Offer charges MA hereunW. or OIDNvmlt 0oauhs with respect to any provrsoot of mla Lease. Landterd may use the security deposit. or any pofto Of d.10 curd loo default or eanptiouts i sa0lor4 rot all damages 5u4Umed 4 Landlord Mulling tram Tenant's aetaun Tenant shad MomMataly on Mur C Pay W tarrdlore ins sum equal to coat porliOn 01 ma aecurlly OWIll expended Or Applied Dy Landlord whin war provided for in this paragraph so as to Inamum tee security oepW in die sum morally oaposNad with L4halora Landlord shalt nor to required to hop ire Wunty deposit separate from its general account nor shah Llkli ca required to pay Tenant any interest on its security deposit. if Tenant porlomte ad of Tenant's obl Ions una r tJ1te Lease. Ira security deposit or flat partion thereof wroth has not previously Been applied try me Undlord. shall Be returned to Ten m ■ithin fourteen (14) days after ins expiration of file term of mks 1,mg, or after Tenant has v9cat90 lot premises, wNchawr ls.alor 9. POSSESSION: 0 Ina Landlord for any rum wool 0/1wer posseaaron at the Premaes TO Tenant at the carenineemem of tha term, the Landlord shall not to Idiots to Tenant for any loss or damage resulting thNahrom, out mere tdari Be a proponronale Oaductron of rent; nor shall mrs ruse De void or vordaae tot a period or ten (10) days mereaner: and it r« any reason the Premsea canna to dolNered vneun said ten 110) day Period. the Tenant may, prior lo LandWd's delivery at the Ro vms, doctors this Lease to be null and veld and all MMV 00 M Larltllord shall no retunOM to Tenant 7. USE: 11 is agreed Mal too Premises snail be used only tar rurdence purposes, for one famay consisting of one adulteend too macron, 00 no animals. and for no other purposes wtasaver. Tenam m his possamon, use and occupancy a the Prohnsm agrees to o0serve Sro comply wnn an resnictiam, laws and ormnanees aUearng said property or occupancy merOM; and Tenant IunMr agross Mat no use stall anode of ins Premises, her orris done which will increase the existing rate of insurance upon me Premises. or wid cause a cancellation of airy ttlsurame policy covering ins Remises 1. UTIUTIES: Ins Tenant shoo pay for all water Supplied la me PrNnaes and shill pay for to gas, no, llghl. power, telephone service, and other services supplied to the Premises. except[ as eertnn provided. 9. REPAIRS AND INAINT9NANBE: Too LAndlaro shall at its sale coil and expense will aria mamlarn me exterior wale. tool,.etectr cat wiring, oeattng system. air conditioning System (il any), water nealor. owit,in appliances. and water lines in good aria sanitary oraer. condition. are repair, erupt wnere damage (d any) has coon caused Dy ins aputs of negligence or tea Tenant. In which event Tenant than repair same at his sae cost and expense., Except ore herein provided, Tenant Mredy agrees trial the Promises are now in a lsnantaDte ono good condition and snail at vie sole c051 ado expense stop and marnarn Ina Remises. appurtenances and every a pain Ma cherish; di. i ngthe manner in which the Ina ereyrsnail ramm~ a a oa weer and tur uesptaa, including household turn ilure. tenures, goods g to ire and satisfactory order. condition ado repair. Tile Tenant agrees to maintain landscaping. swimming pea (d any) and Tenant agrdas to adequately water mid landscaping D0c706-2000 12:22pm From- . T-404 P.012/015 F-069 1R. ALTERATIONS AND ADDITIONS: Tenant than not. wdltoul the Lenolora's prior written consent. III any alterations. Improvements or adaitions in or about the Premises and any addilions to or alterations at the Promises twdh Inc exception of movaple furniture) shall at once Caroms a pan of Inc really and oelong to the Landlord. Inc Tenant snail Keep the Premises tree from any hens Arising out of any work penormea. materials furnished or obligations incurred by the Tenant. if. HOLD NARMLESS: Tenant snail Indemnify and hob landlord IgrmllSS from and against any and all claims arising (tom Tenants use at occupancy of Inc Premises of from any. Activity, wOrN, or things which may ore perminto fir SuDlred by Tenant in or AD0u1 ma Premises Including all damages, costs. a0orney's fees, expense and,tiatxlmee incurred in iN defense of any claim dr action or procoeding arising lneretrom. Except for fanowit*s w titul or grossly negligent cbnaucl. Tenam Nratry, asswmn all rraK of damage to properly, mcluging nousenoid furniture aria goods. or injury in person in or aooul ins Premises from any cause, and Tenant hereby waives an claims in respect thereat against Lan0loro 12. DAMAGE TO PREMISES: (a) It me Premises are so damaged by fire at from any other cause as to render it simenarrabie, men either party enatl nail iris rrgm 10 terminate this Lease as of fns date on which such damage occurs. through writers noises to fns other pany. to w given within fihesn (15) days after the occurrence of such damage. except Ina; should such damage or destruction occur as the result of the aoose of negligence of Tenant. or lit friwtess. so as to render ins Premises untenamavit. me Landlord only Shall have this rignt of termination. Should this fight oe exercised by-simer Landlord or Tenant. them rent tar me current month shall he Promises between trio parties as of ine dale on which such damage occurred and any prepaid rent aria unused security deposit shad de refunded 10 Tenant. (of if mis tease is not terminated as provided in trims paragraph 13. the Landlord snail promptly repair trio Premises and mere shah be a proportionate reduction of rent unlit Me Premises are repelled and ready for Tenant's occupancy, such proportionate reduction to be dosed upon the extent far which the making of repairs intarreres with Tenant's reasonable use of the Premises. 13. ASSIGNMENT AND SueLETTING: Tenant snail n0a voluntarily or by operation of law assign. transfer. suolel, mortgage. or olnervnse transfer or enCumber all or any part al Tenants intertsr in this Lease or in me prosil wiln0ul Landlord's prior written consent which WWII shall not be u0reasonably withheld Tire Consent to One assignment Of Subletting snail not D! construed as consent 1o Any sYOSegWt01 assignment or supiouing /4. DEFAULT: default and Creech any other n is agreed between Inc parties nereo mat it spry rent snail w due Iftreunder and unpaid. Or if Tenant Shall covenant or provision at ant Lease Mtn Inc Landlord. aver giving Ine proper notice required by law. may to-rimer the Premises and remove any property and any ana all persons therefrom in Inc manner allowed by law The Landror s may. of its option. either maintain this LtaSe in lull fares and ffect and recovery air remals aria recover any then damages and pursue any otw0e err righd or. Me ts alto remea ssrwhFCn Ina Landlord MIS have lAgainsnne Te nt by re son of such default as provided Cy law is. NANpONMENT: Tenaht snail not vacate Or adandon Ine Premftes at ally If= during 100lorm of ems Leash . 16. ENTRY RT LUDLOW The Tenant shall permit the Landlord 4 n0y0r as Agents to enter into IN upon ine Prerhutet at all fiyaepna0lB limes aria upon reasonable flouts tar IN purpose Of Inspecting if or for ins purpose of maintaining IN Premises. or tot ins purpose of eanfbdrtlg ins Premises 10 prospective purcNSers or tenants. " - 17. ATTORNEll PEES: fl ender party commenns an action against foe caner pare arising out of or in connection with mis Lease, ins prevailing party snail to Spoon to nave and recover tram fM seeing Party reasonable amdrnay"s %as and costs at wit /R. SURRENDER: On Me lest day 01 me form at Ims Lease. Tenant snail surrender Ine Premises to landlord in good Condition, orvom clean, ordinary wear end tear and damage by fin ana Inc elements excepted. .$7,000 per ■oneti to. MOLDING OVER: It Tenant. with the Lanpor0's content, remains m possession of trio Promisee after expiration Cr termination of in term of tna Lease. Such possession by Tenant Shan be dllnfe0 tow a tenancy from monies-osmonlh at a rental in the amount o1 p u 1 other charges payable hereunder, and upon all Ina provisions of this Lease applicable, to such a monm•10•menth tenancy. 10. RINGING ON SUCCESSOR$ AND ASSIGNS: Each provision of this Lease perlorml oy Tenant SNIT Of deemed ban a covenant and a condition The terms, conditions and covenants M taus Lease shall be binding upon And shelf inure to IN 041411111 01 each 01100 barites hefeo. Moir hours. personal repfasamativot. successors and assigns Dec-011-2000 12:22pm From- T-404 P.013/015 F-099 t1 Wnmewhen e ver under this Lease a provision is m3Ae for any demand. voice or oaclarwon at any kind. it snap be in writing and served enter personally or sent Dy registllea of certified United Stales mad. postage piepito. addressed at ina address as set tonn Delon. TO LANDLORD AT a60 4ossth IpA Aweles Street Suet 630 - Iea Ancelee U111037111101 11 JO TENANT AT The Vreaises Sucn'nonce snail oe aeerned to tie received within tprty~eignT (48) nouns from ina Time AI 013111119. d miaBd as provlaea IOr In Inie paragraph it. WAIVERS: No waver Dy Landiord of any provision hereof snail be dtemoo a waiver of any other provision hereal or of any suOSeduenl areacn Dy Tenant of Inc Same or any Diner provisions :3, TIME: Tdhe is Of the essence pt lots Lease. 14. JOINT AND SEVERAL OBLIGATIONS: "Party" shall man Lanoiora ano Tenant: and 11 more loan Ono person or entity is lot Lanaloro or Tenant. loo oaigafmons unposed on the pang Snell be joint ono several AE-BPwtug'lual f ENS. 1PrB pq tIU1 TBllanl Shill not Shen De rn deliYn hereunder. TBrlard anal) ndvA the ophafl 10 an[1nd the IOfm of this Lease IOr aOdlhOhel (month /year) pohods upon me "Fool Terms and Conditions herein contained. ueepl for fixed minimum monthly rental. upon wive slight to Landlord of carmen naKe of Its eNetipn to 6asftlsg such Opllanlsl at least SIxTy 1601 adys prior to Ine eaprghon of the original (or axle Parent The pames norato shall flavor thirty (301 clays after the Len0lord receives the Option notice in which to agree an its minimum monthly to ring its Wended term(s). d toe panraa agree on ine minimum monthly rent lw the extenaea form(s) during that period. they snail Immediately a ego amendment JO INS Laife stehhg lot minimum mommy rent in ins event Ingi inert d more loan one Option W Island the Term 0111115 Lease. I ten hersla snail Pagolmals Ina minimum mammy rent as set lonn herein for tact eaenoed term ai IN Lease a the parties nerelo art Yneaie to 1 minimum mpnthly rent for Ine extended urmis) within said thirty 130) day period. Ina Option notice anon be of no effect and this Least snarl expo end of me term. Neither parry to tins Lease snail nave me ngm fo have a court or Diner third pang set the minimum mammy rent. The ponies herato have executed this Leine an Ihe data first above written UNDLORD: TENANT. Eaton Village Shopping Censers 11Cs By a California limited liability company By: By, Houses Titles Da'AS-2000 12:23pm From- T-404 P.014/015 F-990 AS SIGNMENT AGREEMENT THIS ASSIGNMENT AGREEMENT C,As4gument") is made and entered into as of this 11th day of November 2000, by and among BERNADETTE P. QUERCIO, as trustee of the Bernadette Paula Quercio Trust under Declaration of Trust dated March 21, 1997 LLAGE CENTER, RLLC, OBERT aCaliforniaa limited liability co(-McCoy, and mpany C Eaten illage')Iwith eferenceePo the following recitals of fact: RECITALS A_ Seller and McCoy entered into that certain Residential Purchase Agreement (and Receipt for Deposit dated as of April 28, 2000, as amended by that certain first Amendment to Residential Purchase Agreement (and Receipt for Deposit) dated as of November 10, 2000 between Seller and McCoy (collectively, the "Purchase Agreement") pursuant To which Seller, agreed to sell and McCoy agreed to purchase that certain. real property located in Los County, California known as 9734 Abilene Street, and more particularly described in Purchase Agreement. B_ McCoy now desires to assign the Purchase Agreement to Eaton Village as set forth herein, and Seller desires to consent To such assignment. NOW, THEREFORE, in consideration of the foregoing, and of the conditions, terms, covenants and agreements set forth heein.and of other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto hereby agree as follows: AGREEMENT lid Assumption, Consenr. McCoy hereby assigns its interest in the Purchase Agreement M Eaton Village. Eaton Village hereby accepts such assignment of the Purchase Agreement from McCoy. Seller hereby consenTS to the assignment of The Purchase Agreement to Eaton Village and assumption of The Purchase Agreement by Eaton Village as provided herein, and hereby releases McCoy from all liabilities; claims and obligations under the Purchase Agreement. 2. Full Force and Effect. The Purchase Agreement sha11 remain in full force and effect between Seller and Eaton Village. 3. Counterparts. This Assignment may be executed in several counterparts, each of which shall be deemed to be an original, and all of which together shall be deemed to be one and the same instrument when each party has signed one such counterpart. . 20279151v1. 1 Doc-06-2000 12:2Um From T-404 P.015/015 F-999 4. Facsimile. This Assignment may be delivered to Escrow, as defined in the Purchase Agreement, and the other party by facsimile Transmission. IN WITNESS WHEREOF, the parties hereto have executed this Assignment as of the date first set forth above. "Seller" "McCoy" BERNADETTE P. QUERCIO, ROBERT McCoy, As trustee of the Bernadette Paula An individual Quercio Trust tinder Declaration of Trust dated March 21, 1997 "Eaton Village" EATON VILLAGE SHOPPING CENTER, LLC, a California limited liability company By: Name. Robert McCoy Its: 20279151vl 1 -2- Fidelity National Title Company 601 S. Figueroa Street, Suite 2130 • Los Angeles, CA 90017 (213) 689-9301 FAX (213) 689-9330 SALE ESCROW INSTRUCTIONS Date: July 20, 2000 Escrow No.: 99342-MV Escrow Officer: Mary Venia TO: FIDELITY NATIONAL TITLE INSURANCE COMPANY Buyer will execute a new First Deed of Trust to record in the amount of $ 275,000.00 TOTAL CONSIDERATION $ 275,000.00 This escrow is entered into pursuant to that certain Residential Purchase Agreement land Receipt for Deposit) dated April 28, 2000; and Counter .Offer. dated July 5, 2000, hereinafter referred to as the " Agreement copy of which is attached hereto and made a part hereof identified as EXHIBIT A, by and between BERNADETTE P. OUERCIO, Trustee as Seller and ROBERT E. MCCOY , or Assignee, as Buyer, and you are authorized to act thereunder insofar as closing escrow is concerned. However, you are to be concerned with those portions of the Agreement which involve conditions and/or payments and documents customarily handled by Escrow Holder, including, without limitation, portions pertaining to financing, escrow, allocation of costs, title and vesting, prorations, property taxes, time periods, broker's commission and such other terms and conditions as may be applicable to Escrow Holder. Parties agree to sign any additional instructions, documents and/w forms which are necessary to complete this transaction. We further agree that to the extent there is any inconsistency between the Agreement and these Escrow Instructions, including the General Provisions attached hereto and made a part hereof, these instructions shall control as to. Escrow Holder; however, as to the parties, the Agreement shall be controlling and these instructions do not supersede the Agreement as to the parties. We authorize you to order the necessary documents and demands to provide title insurance and complete this, transaction as contemplated in the Agreement. We further authorize you to forward copies of inspection reports received by you to us for review and to comply with any lender's instructions you may receive. You are instructed to mail forms, documents and other items to the entitled parties at the address'set forth in the above mentioned Agreement or as provided by Agent. AND, on or before September 29, 2000, Escrow Holder will be handed additional funds and/or instruments required to enable Escrow Holder to comply with these instructions, which Escrow Holder is instructed to use when in a position to procure/issue a CLTA Standard Policy - 1990 Form coverage form Policy of Title Insurance from Fidelity National Title Insurance Company with a liability of $275,000.00, covering the following described property located in the City of Rosemead, County of Los Angeles, State of California: LOT 5 OF TRACT 14715, IN THE CITY OF ROSEMEAD, COUNTY OF LOS ANGELES, STATE OF CALIFORNIA, AS PER MAP RECORDED IN BOOK 327, PAGES 3 THROUGH 5 INCLUSIVE OF MAPS, IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY. C.c-oifi,'.rl to, he a true a-rcJ correct SELLER/TRANSFEROR STATES THAT PROPERTY ADDRESS IS: y si,j,F : me' )pears in our 9734 Abilene Street, Rosemead, CA 91770 rll S. { r r4 SHOWING TITLE VESTED IN: ROBERT E. McCOY, or Assignee FIDELIPe 1110NALT111_E FREE FROM ENCUMBRANCES EXCEPT: .1. Current general and special taxes for the fiscal year in which this escrow closes, and taxes for the ensuing year, if any, a lien not yet due and payable; 2. The lien of supplemental taxes, if any, assessed pursuant to the provisions of Chapter 3.5 (commencing with Section 75) of the Revenue and Taxation Code of the State of California; 3. Bonds and Assessments with no delinquent payments, if any; 4. Covenants, conditions restrictions, reservations, easements and rights of way now of record, if any; 5. A First Deed of Trust, to record, securing a note in the amount of $275,000.00 in favor of a lender of Buyer's choice to be determined during escrow. Continued on following page Initial Date: July 20, 2000 Escrow No: 99342-MV GENERAL INSTRUCTIONS.TO ESCROW HOLDCnc 1. FOR CLARIFICATION PURPOSES: July 07, 2000 Acceptance Date July 20, 2000 Opening Escrow Date Aug 04, 2000 Loan Contingency Expires Aug 04, 2000 Inspection Contingency Expires Sept 29, 2000 Close of Escrow Date Page 2 2. AGREEMENT SIGNATURES: By signing these instructions, Buyer and Seller hereby acknowledge and confirm with Escrow Holder that the attached Exhibit A referenced hereinabove, is acknowledged in its entirety as if their original signatures and/or initials appeared thereon, and hereby approve for use in this transaction. 3. AGREEMENT ITEMS OF WHICH ESCROW IS TO BE CONCERNED ARE AS FOLLOWS: Purchase Agreement Items 1A, 1C, 1E, 1F, 4A, 46, 4C, 4D, 8A, 88, 14 and 31; Counter Offer Items 1, 3, 4; 5 and 7. 4. ALLOCATION OF PURCHASE PRICE TO BE: $225,000.00 Real Property $ 50,000.00 Relocation costs of,business and residence $275,000.00 Total Consideration 5. BUYER'S DEPOSIT: Buyer's initial deposit in the amount of $2,750.00 shall be held uncashed by Escrow Holder until escrow is in receipt of these in mutually signed by buyer and seller. 6. DOCUMENTARY TRANSFER TAX, County and City ( if any), is to be calculated on the amount of $225,000.00 Real Property value established hereinabove cost of which is to be at the expense of Sell'pr. 7. THIS TRANSACTION IS CONTINGENT UPON BUYER OBTAINING A NEW 1ST LOAN: Buyer to obtain and property to qualifying for a new conventional First trust deed loan securing a note in the amount of $275,000.00 in favor of lender of buyer's choice. Said loan to be at the best prevailing rate and terms. Buyer's signature on lender's documents shall be deemed their approval and acceptance of the terms and conditions of said new loan and Escrow Holder's authorization to comply with lender's requirements. 8. DEMANDS TO PAYOFF EXISTING LOAN(S) OF RECORD: Seller to provide Escrow Holder with information to order demand statement(s) for payoff of existing loan(s) of record. Seller to keep loans current during escrow period. Seller is aware that interest on the existing loan(s) does not stop accruing. at close of escrow, but continues until the actual day of receipt of the payoff by Lender. Seller is aware that interest will accrue through weekends or holidays. Seller is aware he/she/they are responsible for payment of all of such interest and will indemnify and hold Escrow Holder harmless in connection with the payment of such interest. 9. TAX DEFERRED EXCHANGE: Seller to advise escrow as soon as possible with the name of an Exchange Accommodator in the event Seller elects to pursue a tax deferred exchange. Buyer agrees to cooperate with Seller in a tax deferred exchange without additional cost to. Buyer. 10. - BY SIGNATURE HEREON, BUYER AND SELL ACKNOWLEDGE THEY HAVE EACH OBTAINED THE PROFESSION ALA DVICE AND COUNSEL OF AN ATTORNEY, ACCOUNTANT OR OTHER TAX SPECIALIST'S OPINION CONCERNING THE EFFECT OF THIS LAW ON THIS TRANSACTION AND SHOULD NOT ACT ON ANY STATEMENTS MADE OR OMITTED BY THE ESCROW OR CLOSING OFFICER. 11. RELEASE OF FUNDS TO SELLER: Escrow Holder to be provided with further mutually signed - escrow instructions as to when the release of $ 10,000.00 to Seller is to occur as referenced in Counter Offer Page 2 Item 7. 12. BUYER AND SELLER ACKNOWLEDGE THAT ORDINANCE REQUIREMENTS MAY AFFECT THE TRANSFER OF OWNERSHIP OF SUBJECT PROPERTY. BUYER AND SELLER SIGNATURE ON THESE ESCROW INSTRUCTIONS SHALL BE DEEMED EVIDENCE BY ESCROW HOLDER THAT THEY WILL COMPLY WITH SAME OUTSIDE ESCROW AND NOT A MATTER OF WHICH ESCROW IS TO HAVE ANY RESPONSIBILITY AND/OR LIABILITY. 13. Buyer acknowledges deposit of balance of funds to close escrow to be in the form of wire transfer, certified check, cashier%Ss checklo'rcteller' oh'eck p j(a~if8rfo~ fidelity National Title Company pursuant to the "Deposit of Funds"crParagraphSti;IOontzif tid::iMEtHei G4Keral Provisions attached hereto and made a part hereof Continued on following page Date: July 20, 2000 Cscrow No: 99342-MV .,14. ,The undersigned hereby authorize and instruct Escrow Holder to cliar ge each party to the escrow for their respective Federal Express, special mail handling/courier and/or incoming/outgoing wire transfer fees.i Unless specified in writing by the undersigned, Escrow Holder is authorized to select special ,mail/delivery or courier service to be used. Wire services required by the parties herein or by their individual lenders will be.charged at twenty dolla(s ($20.00) per wire, incoming and outgoing. Page 3 15. AS A MATTER OF MEMORANDUM ONLY AND MUTUAL AGREEMENT BETWEEN BUYER AND SELLER OF WHICH ESCROW HOLDER HAS NO CONCERN OR RESPONSIBILITY: Seller shall cooperate with Buyer and execute documents as delivered by Buyer which may be required for Governmental approval and/or take such other actions that Buyer in the exercise of,his sole discretion, may deem necessary, expedient or appropriate for obtaining any entitlements or approvals related to Buyer's proposed development of property. THE FOREGOING INSTRUCTIONS AND THOSE "GENERAL PROVISIONS" ATTACHED HERETO AND MADE A PART HEREOF ARE APPROVED AND ACCEPTED IN THEIR ENTIRETY AS FULLY SET OUT IN THIS PARAGRAPH: EACH OF THE UNDERSIGNED BUYER(S) HEREBY AUTHORIZE ESCROW AGENT TO FURNISH COPIES OF CLOSING STATEMENTS TO LENDER AND/OR BROKER INVOLVED. BUYER'S SIGNATURE: Robert E. McCoy, or Assignee MAILING ADDRESS: FORWARDING ADDRESS: I/W'r HAVE RECEIVED A COPY OF THESE INSTRUCTIONS. SELLER'S SIGNATURE: Bernadetteerc e ? of the Bernadette Paula Quercio Trust under Declaration ofTrusstdated March 21, 1997 MAILING ADDRESS:. FORWARDING ADDRESS: r END OF INSTRUCTIONS. Continuer/ on following page 1771/ %D j"`q r!;;? ~n 'l`e a frt.fP „?.n ~f corrP!~t + OUt .aS` rIE` same 2a jl7@8 YS in our t!I>S. El ~J~ UCL11'Jpl'1TIpNALTIi'~R LE 'Date:. July 20, 2000 Escrow NO: 99342-MV i 1.. DEPOSIT OF ,FUNDS The law dealing with the disbursement.of funds requires that all funds be available for withdrawal as a matter of right by the title entity's escrow and/or sub escrow account prior to disbursement of any /rinds. Only cash or wire transferred funds can be given , immediate availability upon deposit. Cashier's checks, teller's checks and Certified checks may be available one business day after deposit. All other funds such as personal, corporate or partnership checks and drafts arc subject to mandatory holding periods which may cause material delays in disbursement of funds in this escrow. In order to avoid delays, all fundings should be wire transfer. Outgoing wire transfers will not be authorized until confirmation of the respective incoming wire transfer or of availability of deposited checks. All funds received in this escrow shall be deposited with other escrow funds in a general escrow account or accounts of Fidelity National Title Company, with any state or national bank, or savings and loan association (the "depository Institution") and may be transferred to any other such general escrow account or accounts. The parties to this escrow acknowledge that the maintenance of such escrow accounts with some depository institutions may result in Escrow Holder's being provided with an array of bank services, accommodations or other benefits by the depository institution.' Escrow Holder or its affiliates also may elect to enter into other business transactions with or obtain loans for investment or other purposes from the depository, institution. All such services, accommodations and other benefits shall accrue to Escrow Holder and Escrow Holder shall have no obligation to account to the parties to this escrow for the value of such services, accommodations or other benefits. ' Said funds will not earn interest unless the instructions otherwise specifically stale that funds shall be deposited in an interest -bearing account. All disbursements shall be made by check of Fidelity National Title Company. The principals to this escrow are hereby notified that the funds deposited herein are insured only to the limit provided by the Federal Deposit Insurance Corporation.' Any instruction lot bank wire will provide reasonable time or notice for _ Escrow Holder's compliance with such instruction. Escrow Holder's sole duty and responsibility shall be to place said wire transfer instructions wjilh its wiring bank upon confirmation of (1) satisfaction of conditions precedent or (2) document recordation at close of escrow. Escrow Holder will NOT be held responsible for lost interest due to wire delays caused by any bank or the Federal Reserve System, and recommends that all parties make themselves aware of banking regulations with regard to placement' of wires. In the event there is insufficient time to place a wire upon any such confirmation or the wires have closed for the day, the parties agree to provide written instructions for an alternative method of disbursement. WITHOUT AN ALTERNATIVE DISBURSEMENT INSTRUCTION, FUNDS WILL BE HELD IN TRUST IN A NON-INTEREST BEARING ACCOUNT UNTIL THE NEXT OPPORTUNITY FOR WIRE PLACEMENT. To tile extent provided by law, if for any reason funds are retained or remain in escrow following the close of escrow, you are to deduct therefrom a reasonable monthly charge as custodian . thoreol of not less than S10.00 per month. 2. PRORATIONS AND ADJUSTMENTS All prorations and/or adjustments caller/ for in this escrow are to be made on the basis of a thirty (30) day month unless otherwise instructed in writing. You are to use information contained on last available tax statement, rental statement as provided by the Ii d livered into y principal instructing you to cancel this escrow shall file cellation in your office in writing. You shall, within two (2) working days thereafter, deliver, one copy of such notice to each of the other principals at the addresses stated in this escrow. UNLESS WRITTEN OBJECTION TO CANCELLATION IS FILED IN YOUR OFFICE BY A PRINCIPAL WITHIN TEN (10) DAYS AFTER DATE OF SUCH_MAILING, YOU ARE AUTHORIZED TO COMPLY WITH SUCH NOTICE AND DEMAND PAYMENT OF YOUR CANCELLATION CHARGES. If written objection is filed, you are authorized to hold all money and instruments in this escrow and take no further action until otherwise directed, either by the principals' mutual written instructions, or by final order of a court of competent jurisdiction. 9. PERSONAL PROPERTY No examination or insurance as to the amount or payment of personal properly taxes is required unless specifically requested. By signing these 'General Provisions, the parties to the escrow hereby acknowledge that they are indemnifying the Escrow Holder against any and all matters relating to any "Bulk Sales" requirements, and instruct Escrow Agent to proceed with the closing of escrow without any consideration of matter of any nature whatsoever regarding "Bulk Sales" being handled through escrow. 9. RIGHT OF RESIGNATION Escrow Holder has the right to resign upon ten (10) days written notice delivered to the principals herein. If such right is exercised, all funds and documents shall be returned to the party who deposited them and Escrow Holder shall have no liability hereunder. 10. AUTHORIZATION TO EXECUTE ASSIGNMENT OF HAZARD INSURANCE POLICIES Either Buyer. Seller and/or Lender may hand you lice insurance agent's name and insurance policy information, and you are to execute, on behalf of the principals hereto, form assignments of interest in any insurance policy (other than title insurance) called for in this escrow, forward assignment and policy to the insurance agent, requesting that the insurer consent to such transfer and/or attach a loss payable clause and/or such other endorsements as may be required, and forward such policy(s) to the principals entitled thereto. It is not your responsibility to verify the information handed you or the assignability of said insurance. Your sole duty is to forward said request to insurance agent at close of escrow. Further, there shall be no responsibility upon the part of Escrow Holder to renew hazard insurance policy(s) upon expiration or otherwise keep it in force either during or subsequent to the close of escrow. Cancellation of any existing hazard insurance policies is to be handled directly by the principals, and outside of escrow. 11. ACTION IN INTERPLEADER - The principals hereto expressly agree that you, as Escrow Holder, have the absolute right at your election to file an action in interpleader requiring the principals to answer and litigate their several claims and rights among themselves and you are authorized to deposit with the clerk of the court all documents and funds held in this escrow. In the event such action is filed, the principals jointly and severally agree to pay your cancellation charges and costs, expenses and reasonable attorney's fees which you are required to expend or incur in such intorpleader action, the amount thereof to be fixed and judgment therefor to be rendered by the court. Upon the filing of such action, you shall thereupon be fully released and discharged from all obligations imposed by the terms of this escrow or otherwise. - 12. TERMINATION OF AGENCY OBLIGATION If there is no action taken on this escrow within six (6) months after the "time limit date" as set forth in the escrow Seller, beneficiary's statement and file insurance Po cV e instructions or written extension thereof, your agency obligation s a i herein. rovided for ations p w for the pror scro e terminate at Your option and all documents, monies or r other r items TAXES PPLEMENTAL SU 3. be subject to held by you shall be returned to the parties depositing same. In the The within described property may to the change of ownership d event of cancellation of this escrow, whether it be at the request of lit Fid ue supplemental real property [axes suppl Any supplemental real property row hi e y of the rinci als or otherwise, the fees and charges due any P P urred and/or i . s esc taking place through t transfer of the property to Buyer shall:' f th l nc National Title Company, including expenditures (unless t h e t o taxes arising as a resu r and any supplemental real property' f B ere o authorized shall be borne equally by the parties uye be the sole responsibility o date shall be the sole responsibility losin h otherwise agreed to specifically). g e c taxes arising prior to t TAX BILLS ISSUED AFTER CLOSE OF ESCROW SHALL f the Seller INSTRUCTIONS ICIN G 13. CONF ling instructions, you are to take i n . o BE HANDLED DIRECTLY BETWEEN BUYER AND SELLER. - e y rece pt Upon p a connection with this escrow until non-conflicting i i ' 4. UTILITIES/POSSESSION on n act no instructions are received from all of the principals to this escrow Transfer of utilities and possession of the premises are to . (subject to sections 7, 9, 11 and 12 above). be settled by the parties directly and outside escrow. REIMBURSEMENT ATTORNEY FEES/ESCROW HOLDER 14 5. PREPARATION AND RECORDATION OF INSTRUMENTS . - In the event that a suit is brought by any party or parties to Escrow Holder is authorized to prepare, obtain, record and d these escrow instructions to which the Escrow Holder is named as a deliver the necessary instruments to carry out the terms a n t a arty which results in a judgment in favor of the Escrow Holder and nce o conditions of this escrow and to order the policy of title insur Close i p against a principal or principals herein, the principals or principals' ons. be issued at close of escrow as called for in these instruct ree to pay said Escrow Holder all costs, expenses and nt a of escrow shall mean the dale instruments are recorded. - g age reasonable attorney's fees which it may expend or incur in said suit, 6. AUTHORIZATION TO FURNISH COPIES the amount thereof to be fixed and judgment therefore to be tendered You are authorized to furnish copies of these instructions, sin notices of cancella4iqqila nd15Iv ts d by the court in said suit. men , n supplements, amen ker(s) and Lender(s) named in this' 8 t B l E IFU(T5^OIFbVEAY"(RrEFEIPT l ro sta e Statements, to the Rea la:(ly 5%ali1 ro j ess 0 RN)earR [~qli ~YF to principals as used in these instructions un and receipt is lar mail b esc o TII~ U , y regu 1 otherwise sla etl herein is to be b . RIGHT OF CANCELLATION 7 BY / ;L;1 ~c FIDELITY r ATIONA,L. TITLE - Imlials: Continued on following page GENERAL PROVISIONS An notice of can Date: July 20, 2000 Escrow No: 99342-MV determined to be 72 hours after such mailing. All documents; balances and staternenls due to the undersigned are to be mailed to the address shown herein. j6. STATE/FEDERAL CODE NOTIFICATIONS applicable, will .According to Federal Law, the Seller, when app be required to complete a sales activity report that will be utilized to generate a 1099 statement to the Internal Revenue Service. Pursuant to Slate Law, prior to the close of escrow, Buyer will provide Escrow Holder with a Preliminary Change of Ownership Report. In the event said report is not handed to Escrow'Holder for submission to the County in which subject property is located, upon recording of the Grant Dead, Buyers acknowledge that the applicable fee will be assessed by said County and Escrow Holder shall debit the account of Buyer for same at close of escrow. Buyer and Seller herein represent and warrant that they will seek and obtain independent legal advice and counsel relative to their obligations under the "Foreign Investors In Real Property Act", and any other applicable federal and/or state laws regarding same, and will take all steps necessary in order to comply with such requirements and hereby hold You harmless relative to their compliance therewith. 17. ENCUMBRANCES Escrow Holder is to act upon any statements furnished by a h,mbulder or his agent without liability or responsibility for the accuracy of such statements. Any adjustments necessary because of a discrepancy between fire information furnished Escrow Holder and any amount later determined to be correct shall be settled between the parties direct and outside of escrow. 18. ENVIRONMENTAL ISSUES Fidelity National Title Company has made no investigation concerning said property as to environmental/toxic waste issues. Any due diligence required or needed to determine environmental impact as to forms of toxiricalion, if applicable, will be done directly and by principals outside of escrow. Fidelity National Title Company is released of any responsibility and/or liability in connection therewith. , Page 5 19. USURY Escrow Holder is not to be concerned with any questions of usury in any loan or encumbrance involved in the processing of this oscrew and is hereby released of any responsibility or liability therefore. 20. DISCLOSURE Escrow Holder's knowledge of matters affecting the property, provided such facts do not prevent compliance with these instructions, does not create any liability or duty in addition to these instructions. 21. CLARIFICATION OF DUTIES Fidelity National Title Company serves ONLY as an Escrow Holder in connection with these instructions and cannot give legal advice to any party hereto. Escrow Holder is not to be held accountable or liable for the sufficiency or correctness as to form, manner of execution, or validity of any instrument deposited in this escrow, nor as to the identity, authority or rights of any person executing the same. Escrow Holder's duties hereunder shall be limited to the proper handling of such money and the proper safekeeping of such instruments, or other documents received by Escrow Holder, and for the disposition of same in accordance with the written instructions accepted by Escrow Holder. The agency and duties of Escrow Holder commence only upon receipt of copies of these Escrow Instructions executed by all parties. THIS AGREEMENT IN ALL PARTS APPLIES TO, INURES TO THE BENEFIT OF, AND BINDS ALL PARTIES HERETO, THEIR HEIRS, LEGATEES, DEVISEES, ADMINISTRATORS, EXECUTORS, SUCCESSORS AND ASSIGNS, AND WHENEVER THE'CONTEXT SO REQUIRES THE MASCULINE GENDER INCLUDES THE FEMININE AND NEUTER, AND THE SINGULAR NUMBER INCLUDES THE PLURAL. THESE INSTRUCTIONS AND ANY"OTHER AMENDMENTS MAY BE EXECUTED IN ANY NUMBER OF COUNTERPARTS, EACH OF WHICH SHALL BE CONSIDERED AS AN ORIGINAL AND BE EFFECTIVE AS SUCH. MY SIGNATURE HERETO CONSTITUTES INSTRUCTION TO ESCROW HOLDER OF ALL TERMS AND CONDITIONS CONTAINED IN THIS AND ALL PRECEDING PAGES AND FURTHER SIGNIFIES THAT I HAVE READ AND UNDERSTAND THESE GENERAL PROVISIONS. FIDELITY NATIONAL TITLE COMPANY CONDUCTS ESC 2597.3 ISSUED BY THE CALIFORNIA DEPARTMENT OF ROW BUSINESS UNDER CERTIFICATE OF AUTHORITY NO. INSURANCE. Robert E. McCoy, or Assignee EBernadett io r of of the Bernadette P ula Quercio Trust under Declaration of Trust dated March 21, 1997 . ~ ~ l~~~rirl ~ }rt I'1n ,l I'F(fP ..q nil rn. F3ys !p`t /F I e^Zr:S n, our ! fDLi ! (ilk TIURA-L: Ti7-LF•.•. A Vote 03 00 05:04p 04/08/]99'_'5 05:03 . e~ieg~teoe e2: as ATtONrbYa~~ • A . &Nrrr Ig. WMAN a: July S, 2WO EDS Emplowev see WILSON E WILSON PAGE 62E!574I9b8 r1.e.=, u. i2Gti7a~lie WIL90N b w1L'Sl N ~~(2JS~~bl7 600 Salo", PANIC41Y 4o~~~ >jt11111~ ' - iin,iealhl00f1~11z ''~iKt~lrtflM/l7S1•AYrlbttlitvnfsRllse~tlt~d,Cdltorale Leer ]w1i. UZaC~= p i&p; iblt Ww a aev~-oft to your aRerof Ap1t12s; 28,1000 made to pucehasc the F"""Y *WON by Summis MQltldeio• The proihei'spdoe e(SM WO.Oq t* eooeoato under the following terms and conditions; t: Raw* io to atleee as or bekn September 30.2000. WRIMAMID Wit U"allowed to eo uaW'on the premises for four months unur sloe df mcilsw es 60 tier 11Mlthatro 1b9 Ands b ptumhue the prop6n7 to which the will move her MA4411011 U d %OMI bd91ZM sttd. time to-nuke the modlficWons neces sary to accorimma5l atc her bttt 3, '1f1N+1WW4 *4 be u2S,1100.oo for the rut property and 530,000,00 for teloletl~OSS•tryribl •.elblw~YMM+~wilM.nee. , 4. ')lser~rtllliltplrWeoan breberw f'ke and the 5eper shall not be responsible for sap. pgtlep sf ttse ee~Mim . , i itI*, ll " M d p nwow ooitl mate" iocludiss title policK. ' .5 .alesY1Nn11FIK!t1'wv ►.u. Dw rya.iw lt. • , T4CkMttIN1'atA•Yra. V X B1T A T EF L0 39tid Ot"r1h NOa bb9999L=HT9 LF:9L 999L159/7_.T Yov 03 00 05:04p EDS Employee 04/08/1495 05:03 6265741968 671a8/4e62 64;49 6465141969 1KliMM~ *'~'~']r l Ao) a ~y~.,fiBMe'Bltrlat Ju>br~ : • 888 WILSON & WILSON wiux 4 i wlLtL" PAGE ~ ~ old•p=~~~ a laUet ttadicating that in tUc evau that .Q~ AON .p,~~l*dU0k w'.&tdu.dtywouldinsdtuleeminentdomain M ~ It Is me boa of the Buyer to rtlocate under thrcrt of ~Ml6o[&a sf ub "gwlltyins !nt a tax daiarad transfer. 111aetr}~tboim+esr~tli6~~~~`.~Y.~, [vuu. t~9~MP~ w;tstbm ldlar t, 1000 tluough laly 24, 2000 and unsvrilabin to perioc , vVy nr*yttuto, t7.AY' J.0N. D. wlDUioN' ' CDW-. Al , . a: '>111i~ada119 QMMriO~ ' • ' . ~ - s . s E0 39Vd 1, J:• ti t % ~~i~B-1T A nUnN wm ",AAg9l-q Tq ±C:qT AAA7/GA/7T T r Y+ c'xr ,yS>~'~t } e`k v"i: L sn .i,;. 1 ✓`i~ 3 v +r} t,'; . c n ill Fc~N`I nt"~ RESIDENTIAL PURCh. ;E AGREEMENT ASSOCIATION AND RECEIPT FOR DEPOSIT);. OF REALTORS For Use With Single Family Residential Property -Attached or Detached ..oral Dale ill bL` I t 7. J, i ,-rn . at P" o. C ;1 Received Fror)r' J I A-LLA A IJ AA :-Cr 19 i-7 A Deposit Of . ! i yam` Purchase Price OI IA x-! r r . > -n, ; r) { ~ For Purchase Of Property Situated In .P.. n California, Described As ] I A z > d--`l-r-I 1. ' FINANCING: Obtaining Ihqe pans below Is a contingency of thisiAgr~eement. Bu loans. Obtaining "Ideposit, down payment and closing costs is not a contingency. mers' Association transfer fees. ners' Association document preparation lees. disclosure reports. to Detector installation and/or Water Healer b aovide Buyer a written statemept-ol-compann A. BUYER'S DEPOSIT shall be held uncashed until Acceptance and then deposited within 3 business days after Acceptance or 30 C'r_~-~c"ry,\ ~l.r y ..~r p1 with Escrow Holder, ❑ into Broker's IrusNacceunL cr ❑ , by ❑ Personal Check, O Cashier's Check, ❑ Cash, or A 1 e,, r, ~,r,-r A' B. INCREASED DEPOSIT shall be deposited with within Days After. Acceptance, or ❑ C. FIRST LOAN IN THE AMOUNT OF NEW First Deed of Trust in favor of LENDER, encumbering the Properly, securing a note payable at maximum interest of - % fixed rate, or % initial adjustable rate with a maximum interest rate cap of balance due in years. Buyer shall pay loan loes/poinis not to exceed O FHA ❑ VA: Seller.shall pay (i) % discount points, (ii) other fees not allowed to be paid by Buyer, not to exceed $ and (iii) the cost of lender required repairs not otherwise provided for in this Agreement, not to exceed $ D. ADDITIONAL FINANCING TERMS:. r r^ ❑ seller financing (CAR Form SFA-14); ❑ Junior or assumed financing (C.A.R. Form PAA-14, paragraph 5) E. BALANCE OF PURCHASE PRICE (not including costs of obtaining loans and other closing costs) to be deposited with escrow holder within sufficient time to close escrow. F. TOTAL PURCHASE PRICE $ G. LOAN CONTINGENCY shall remain in effect until the designated loans are funded( orX F~ Days Alter Acceptance, by w Ich time Buyer shall give Seller written notice of Buyer's election to cancel this Agreement if Buyer is unable to obtain the designated loans. If Buyer does not give Seller such notice, the contingency of obtaining the designated loans shall be removed by the method specified in paragraph 16B.) H.. LOAN APPLICATIONS; PREOUALIFICATION: For NEW financing, within 5 (or; 9 Days After Acceptance, Buyer shall provide Seller 'a letter from lender or mortgage loan broker stating that, based on a review of Buyers written application and credit report, Buyer is prequalified for the NEW loan indicated above. II Buyer fails to provide such letter within that lime, Seller may cancel this Agreement in writing. 1. ❑ APPRAISAL CONTINGENCY: (II chocked) This Agreement is contingent upon Property appraising at no less than the specified total purchase price. If there is a loan contingency, the appraisal contingency shall remain in effect until the loan contingency is removed. II there is no loan contingency, the appraisal contingency shall be removed within 10 (or ❑ -)'Days After Acceptance. J. ALL CASH OFFER: If this is an all cash offer, Buyer shall, within 5 (or ❑ ) Days Alter Acceptance, provide Seller written verification of sufficient funds to close this transaction. Seller may cancel this Agreement in writing within 5 Days After: (1) time to provide verification expires, if Buyer fails to provide verification; or (ii) receipt of verification, if Seller reasonably disapprove it 2. ESCROW: Close Of Escrow shall occur Days After Accepjance (orp one r' (bale)). Buyer and Seller shall deliver signed escrow instructions consistent with this Agreement p within r Days Alter Acceptance, ❑ a least Days before Close Of Escrow, or ❑ . Seller shall deliver possession and occupancy of the Property to Buyer at1-111 AM 'A ❑ on. the date of Close Of Escrow, ❑ no later than Days After dale of Close Of Escrow, or ❑ . Property shall be vacant, unless otherwise agreed in writing. 11 transfer of line and possession do not occur at the same time, Buyer and Seller are advised to (a) consult with their insurance advisors, and (b) enter into a written occupancy agreement. The omission [TOM escrow instructions of any provision in this Agreement shall not constitute a waiver of that provision. 3. OCCUPANCY: Buyer ❑ does, does not, intend to occupy Properly as Buyer's primary residence. 4. ALLOCATION OF COSTS: (Check boxes which apply. If needed, insert additional instructions in blank lines.) GOVERNMENTAL TRANSFER FEES: - A. ❑ Buyeryu Seller shall pay County transfer tax or transfer lee. B. El Buyer Seller shall pay City transfer tax or transfer lee. TITLE AND ESCROW COSTS: C. ❑ Buyerp Seller shall pay for owner's title insurance policy, issued by A - ) I company. (Buyer shall pay for any title insurance policy insuring Buyer's Lenfler, unles otherwise agreed) ! D. Buyer j~ Seller shall pay escrow foe. ~4f-o Escrow holder shall be TT~r ~r >,,..le. » x EWER/SE TIC/WELL COSTS: I E. ❑ Buyer D Seller shall pay for ewer connection, if connection required by"Law prior to Close Of Escrow. F. ❑ Buyer D Seller shall pay to h e septic or private sewage disooal-syslemim petted G. n Ruyz~ eller-shalhpay u-ha a-aomesticwells tested for water potability and productivity. . OTHER COSTS: H. ❑ Buyer ❑ Seller shall pay Homeor 1. ❑ Buyer.❑ Seller shall pay Homrov J. ❑ Buyer ❑ Seller shall pay for zo e K. ❑ Buyer ❑ Seller shall pay for SmQ Seller, prior to close of escrow, shall I L. ❑ Buyer ❑ Seller shall pay the cost . as a condition of closing escrow unde M. p Buyer ❑ Sell_ershalhpay the cost withthe-follbwing optional coverage: _ PEST CONTROL REPORT: N. ❑ Buyer ❑ Seller shall pay for the late. and local Law, unless exempt.. standards and inspections required California, T _ . ("Buyer'), Dollars $ , toward the Dollars $ - County OI 1 711, ("Property). shall act diligently and in good faith to obtain the designated in minimum mandatory government one-year home warranty plan, issued by cost not to exceed $ 0. (1) Buyer shall have the right to disapprc OR (2) (Applies If any box Is checked below) (a) O Buyer ❑ Seller shalLpay-forweFk (b)-JJBuyer alter shall pay for work Control Report ("Report"), which, within the time specified a registered structural pest control company,_1the Repod as specified in graph-le-17NCESS shy box to correct conditions described In to correct conditions described in by O (2) is checked below h~ a r_. Our Buyer and Seller acknowledg eceip(of copy of this page, which constitutes Page 1'0l.)U Buyer's Initials 04-4A-J) ( ) Seller's Initials ( ) ( ) ex..- THIS FORM HAS BEEN APPROVED BY THE CALIFORNIA ASSOCIATION OF REALTORS* (C.A.R.). NO REPRESENTATION IS MADE AS TO THE LEGAL VALIDITY OR ADEQUACY OF ANY PROVISION IN ANY SPECIFIC THANSACTION. A REAL ESTATE BROKER IS THE PERSON QUALIFIED TO ADVISE ON REAL ESTATE TRANSACTIONS. IF YOU, DESIRE LEGAL OR TAX ADVICE, CONSULT AN APPROPRIATE PROFESSIONAL. The copyright laws of the United Stales (Title 17 U.S. Code) forbid the unauthorized reproduction of this form, or any podion thereof. by pholocof machine or any other means, including facsimile or computerized formals. Copyright © 1991-1999, CALIFORNIA ASSOCIATION OF REALTORS( INC. ALL RIGHTS RESERVED. Published and Distributed by: OFFICE USE ONLY REAL ESTATE BUSINESS SERVICES, INC. `A, 1 tttry dfrr'}~~~t a Reviewed by Broker - a subsidiary or rho CALIFORNIA ASSOCIATION OFREALTORSO 1, l~f~} orDesignee 525 South Virgil Avenue, Los Angeles, California 90020 1 ' 1 IIL..JJJ Dale rovro "~rr'~ Pn1NT DATE PI. I YFR'S D0 PY :P(,gPe:.ty'Address. ~f773 S~. a a. ~Cd 7 Dale: e 5. PEST CONTROL TERMS: If a Report is prepared pursuant to paragraph 4N: ' A. The Report shall cover the (m1gain building and attached structures and. it checked: ❑ detached gar ❑ the following other structlres on the Property: 1 B.' II Property is a unit in a condoominium, planned development, or residential stock cooperative, the ReF and any exclusive-use areas 4eing transferred, and shall not cover common areas, unless otherwise C. If inspection of inaccessible areas is recommended in the Report, Buyer has the option, within 5 DMA and approve the Repon by 11 11 method specified in paragraph. 16B, or to request in wrilinhal furl 1 and tarpons, ❑ separate interest receipt of the Report, either to accept inspection be made. If upon further Inspec ion no In eslallon or TO bon Is found in the inaccessible areas, the cos 1-the inspection, entry, add closing of those areas shall be paid for by Buyer.ll upon further insp Ilion infestation or infection is lour 'rrt a inaccessible areas, the cost of i speclion, entry, and closing of those areas shall be paid for by the pa y so designated in par~9rap O(2)a. II no party is so designated, (hen st shall be paid by Buyer. D. It no infestation or infection by ood destroyn.pesls or organisms Is found in the Report, or upon com lelion of required correclive work, a written Pest Control Cerlilicali n sh 4-be issued. Certification shall be issued prior to Close Of Escrow, nless otherwise agreed in writing. E. Inspections, corrective worms nd-P st Control Certification in this paragraph refers only to the presence or ab ence of wood destroying pests or organisms, and duo "nolincluDo Ih condition of root coverings. Read paragraphs 9 and 12 concerning root verings. F. Nothing i0_par g5 raph 5 shall relieveller of the obligation to repair or replace shower, pans and shower enclosures due to leaks, it required by-p ,,graph 9B(3). Water lest or sho er pans on upper level units may not be performed unless the owners of progeny below the shower consent. 6. TRANSFER DISCLOSURE STATEMENT; LEAD-BASED PAINT HAZARD DISCLOSURES; NATURAL HAZARD DISCLOSURES; SUBSEQUENT DISCLOSURES; MELLO-ROOS NOTICE; CANCELLATION RIGHTS: A. Within the time specified in paragraph 16A((), it required by law, a Real Estate Transfer Disclosure Statement ("IDS"), Federal Lead-Based Paint Disclosures and pamphlet, ("Lead Disclosures"), and Natural Hazard Disclosure Statement ("NHD') shall be completed and delivered to Buyer, who shall return sigped copies to Seller. B. In the even( Seller, prior to Close Of Escrow, becomes aware of adverse conditions materially affecting the Properly, or any material inaccuracy in disclosures, information, or representations previously provided to Buyer (including Ihose made in a TDS) of which Buyer is otherwise unaware, Seller shall promptly provide a subsequent or amended disclosure, in writing, covering Ihose items, except for those conditions and material Inaccuracies disclosed In reports obtained by Buyer. - C. Seller shall (i) make a good faith effort to obtain a disclosure notice from any local agencies which levy a special lax on the Property pursuant to the Mello-Roos Community Facilities Act; and (ii) promptly deliver to Buyer any such notice made available by those agencies. D. II the TDS, the Lead Disclosures, the NHD, the Mello-Roos disclosure notice, or a subsequent or amended disclosure is delivered to Buyer after the offer Is signed, Buyer shall have the right to cancel this Agreement within 3 days after delivery In person, or 5 days after delivery by deposit in the mail, by giving written notice of cancellation to Seiler or Seller's agent. (Lead Disclosures sent by mail must be sent certified mail or better.) 7. DISCLOSURES: Within the time specified in paragraph 16A(l), Seller shall (f) disclose it Properly is located in any zone idenliffed in.7A and provide any other Information required for those zones; (it) if required by law, provide Buyer with the disclosures and other information identified in 7B; and, (iff) if applicable, take the actions specified in 7C. Buyer shall then, within the time specified in paragraph 16, investigate the disclosures and information, and other information, provided to Buyer,. and provide written notice to Seller of any item disapproved. A..ZONE - DISCLOSURES: Special Flood Hazard Areas; Potential Flooding (Inundation) Areas; Very High Fire Hazard Zones; Stale Fire Responsibility Areas; Earthquake Fault Zones; Seismic Hazard Zones; or any other federal, state, or locally designated zone for which disclosure is required by Law. B. PROPERTY DISCLOSURES AND PUBLICATIONS: Earthquake Guides (and disclosures), Environmental Hazards Booklet. C. ❑ (If checked:) CONDOMINIUM/COMMON INTEREST SUBDIVISION: Property is a unit in a condominium, planned development, or other comrncrj interest subdivision. Seller shall request from the Homeowners' Associalion ('HOA'), and upon receipt provide to Buyer: copies of any documents required by Law; any pending or anticipated claims or litigation by or against the HOA: a slalenfenl containing the location and number of designated parking and storage spaces; and copies of the most recent 12 months of HOA minules for regular and special meetings, if available. (C.A.R. Form HOA-11) D. NOTICE OF VIOLATION: If, prior to Close Of Escrow, Seller receives notice or is made aware of any notice filed or issued against Ih@ Property, for violations of any Laws, Seller shall immediately notify Buyer in writing.. E. DATA BASE DISCLOSURE: NOTICE: The California Department of Justice, sherill's departments, police departments serving jurisdictions of 200,000 or more and many other local law enforcement authorities maintain for public access a data base of the locations of persons required to register pursuant to paragraph (1) of subdivision (a) of Section 290.4 of the Penal Code. The data base is updated on a"quarterly basis and a source of information about the presence of these individuals in any neighborhood. The Department of Justice also maintains a Sex Offender Identification Line through which inquiries about individuals may be made. This is a "900' telephone service. Callers must have specific information about individuals [hey are checking. Information regarding neighborhoods is not available through the *900" telephone service. 9. TITLE AND VESTING: A. Within (tie time specified in paragraph 16A, Buyer shall be provided a current preliminary (title) report (which is only an offer by the title insurer to issue a policy.of title insurance, and may not contain every item affecting title). Buyer shall, within the lime specified in paragraph 16A(2), provide written notice to Seller of any items reasonably disapproved. B. At Close Of Escrow, Buyer shall receive a grant deed conveying title (or, for stock cooperative or long-term lease, an assignment of stock certificate or of seller's interest), including oil, mineral and water rights, it currently owned by Seller. Title shall be subject to all encumbrances, easements, covenants, conditions, restrictions, rights, and other matters which are of record or disclosed to Buyer prior to Close OI Escrow, unless disapproved in writing by Buyer within the lime specified in paragraph 16A(2). However, title shall not be subject (o any liens against the Property, except for those specified in the Agreement. Buyer shall receive an ALTA-R owner's title insurance policy, it reasonably available. If not, Buyer shall receive a standard coverage owner's policy (e.g. CLTA orALTA with regional exceptions). The shall vest as designated in Buyer's escrow instructions. The title company, at Buyer's request, can provide information about availability, desirability, coverage, and cost of various title insurance coverages. THE MANNER OF TAKING TITLE MAY HAVE SIGNIFICANT LEGAL AND TAX CONSEQUENCES. 9. CONDITION OF PROPERTY: A. EXCEPT AS SPECIFIED IN THIS AGREEMENT, Property is sold "AS IS," WITHOUT WARRANTY, in Its PRESENT physical condition. B. (IF CHECKED) SELLER WARRANTS THAT AT THE TIME POSSESSION IS MADE AVAILABLE TO BUYER: 0 (1) Root shall be free of leaks KNOWN to Seller or DISCOVERED during escrow. ❑ (2) Built-in appliances (including free-standing oven and range, if included in sale), healing, air conditioning, electrical, mechanical, water, sewer, and pool/spa systems, it any, shall be repaired, if KNOWN by Seller to be inoperative or DISCOVERED to be so during escrow..(Well system is not warranted by this paragraph. Well system Is covered by paragraphs 4G, 12 and 16.) - ❑ (3) Plumbing systems, shower pans, and shower enclosures shall be tree of leaks KNOWN to Seller or-DISCOVERED.during escrow. - ❑ (4) All fire, safely, and structural defects in chimneys and fireplaces KNOWN to Seller or DISCOVERED.during escrow shall be repaired. . 1z .1 1 ❑ (5) Septic system, if any, shall be repaired, if KNOWN by Seller to be Inoperative, or DISCOVERED to be so'duNig,escrAw ❑ (6) All broken or cracked glass, torn existing window and door screens, and multi-pane windDY+s iyllh Ihroken'seals,ishrall be replaced O-rr.,r( ❑ (7) All debris and all personal property not included in the sale shall be removed. Q}~ !r",f C. PROPERTY MAINTENANCE: Unless otherwise agreed, Property, including pool, spa, landscapI )5Ad)gro,~1 si=is.!L0°be maintained in substantially the same condition as on the date of Acceptance. ' p) -D. INSPECTIONS AND DISCLOSURES: Buyer's right to inspect the Property and disapprove of its condition 5ased upon items discovered in Buyer's Inspections, which are not covered by paragraph 98, shall be governed by the procedure in paragraphs 12 and 16. Disclosures in the TDS and items discovered in Buyer's Inspeclions do NOT eliminate Sellers obligations under paragraph 90, unless specifically agreed in writing. WHETHER OR NOT SELLER WARRANTS ANY ASPECT OF THE PROPERTY, SELLER IS OBLIGATED TO DISCLOSE KN MATERIAL FACTS, AND TO MAKE OTHER DISCLOSURES REQUIRED BY LAW. Buyer and Seller a novrled a receipt of copy of this page, which conslilules Page 2 of _t4 Pages. OFFICE USE ONLY Reviewed by Broker Buyer's Initials Seller's Initials ( ) ( ) _ ~QR REVISED 4/99, or Designee 'PINT DATE ~(I lu I ~I~ Dale ny I DEC V9 „Prolferly Address: lA 42,-L,=J,,- Q) fs is j ~,p~n ~y~rl n Data: 10. FIXTURES: All EXISTING fixtures and fillings that are attached to the Property, or for which special openings have been made, are INCLUDED IN THE PURCHASE PRICE (unless excluded below); and shall be transferred Ices of liens and "AS IS," unless specifically warranted. Fixtures shall include, but are not limited to, existing electrical, mechanical, lighting; plumbing and healing fixtures, fireplace inserts, solar systems, built-in appliances, window and door screens, awnings, shutters, window coverings, attached floor coverings, television antennas, satellite dishes and related eauipmenL private Integrated telephone systems, air coo, Fers/conditioners, poollspa equipment, garage door openers/remote controls, attached fireplace equipment, mailbox, in-ground landscaping, including trees/shrubs, and (if owned by Seller) water softeners, water purifiers and security systems/alarms, and ` - FIXTURES EXCLUDED: 11. PERSONAL PROPERTY: The following items of personal property, free of liens and "AS IS," unless specifically warranted, are INCLUDED IN THE PURCHASE PRICE: 12. BUYER'S INVESTIGATION I OF PROPERTY CONDITION: Buyer's Acceptance of the condition of the Property is a contingency of this Agreement, as specified in this paragraph and paragraph 16. Buyer shall have the right, at Buyer's expense, to conduct inspections, investigations, tests, surveys, and other studies ("Inspections"), including the right to inspect for lead-based paint and other lead-based paint hazards and investigation of the sex offender data base under paragraph 7E. No Inspections shall be made by any governmental building or zoning inspector, or government employee, without Seller's prior written consent, unless required by Law. Property improvements may not be built according to codes or in compliance with current Law, or have had permits issued. Buyer shall, within the time specified in Paragraph 16A(2), complete these `t Inspections and notify Seller in writing of any items reasonably disapproved. Seller shall make Properly available for all Inspections. Buyer shall:.` keep Properly free and clear of liens;' indemnify and hold Seller harmless from all liability, claims, demands, damages and costs; and repair all damages arising from Inspections. Buyer shall carry , or Buyer shall require anyone acting. on Buyer's behalf to carry, policies of liability, worker's 11 compensation; and other applicable insurance, defending and protecting Seller from liability for any injuries to persons or property occurring during any work done on the Property at Buyer's direction, prior to Close Of Escrow. Seller is advised that certain protections may be afforded Seller by recording a notice of non-responsibility for work done on the Property at Buyer's direction. At Seller's request, Buyer shall give Seller, at no cost, complete copies of all Inspection reports obtained by Buyer concerning the Property. Seller shall have water, gas and electricity on for Buyer's Inspections, and through the dale possession is made available to Buyer. - - 13. FINAL WALK-THROUGH; VERIRATION OF CONDITION: Buyer shall have the right to make a fin 0speclion-Q"he-Property within 5 (or O ) Days prior to Close 1 Escrow N07ASA.C9NTINGENCY-OFI-RESh E, but solely to confir that Repairs have been completed asagreediR'wrlting; annlFiat Seller has complied with Seller's other obligations. 14. PRORATIONS AND PROPERTY TAXES: Unless olherwise agreed in writing, real property taxes and assessments, interest, rents, HOA regular, . special, and emergency dues and assessments imposed prior to Close of Escrow, premiums on insurance assumed by Buyer, payments on bonds and assessments assumed by Buyer, and payments on Mello-Roos and other Special Assessment District bonds and assessments which are now a lien shall be PAID CURRENT and prorated between Buyer and Seller as of Close Of Escrow. Proraled payments on Mello-Roos and other Special Assessment District bonds and assessments and HOA special assessments that are now a lien but not yet due, shall be assumed by Buyer WITHOUT CREDIT toward the purchase price.. Properly will be reassessed upon change of ownership. Any supplemental tax bills shall be paid as follows: (1) For periods after Close Of Escrow, by Buyer; and, (2) For periods prior,lo Close Of Escrow, by Seller, TAX BILLS ISSUED AFTER CLOSE OF ESCROW SHALL BE HANDLED DIRECTLY BETWEEN BUYER AND SELLER. Exceptions: 15. SALE OF BUYER'S PROPERTY: A. This Agraement is NOT contingentt~{pon the sale of Buyer's properly, unless paragraph 150 is OR B:. ❑ (11 ohecked) This Agreement IS C, NTINGENT on the Close 01 Escrow of Buyer's properly, i (if checked) ❑ listed for sale with (if,checked) ❑ in Escrow No. _ with Close Escrow on - (d 10). Buyer shall deliver to Seller, within 5 Days After Seller' 'e~ of Buyer's Property, escrow instructions, and all amendments and modifications thereto p8 ye0 is Properl specified for Close Of Escrow in this par graph, than either Seller or Buyer cancel this Agreement in Alter Acceptance: (address) _ ("Buyer's Proper ,which is omleany, and/or ----Escrow Holder, scheduled to a copy of the contract for the sale Des not close escrow by the date (1) (Applies UNLESS (2) Is checked): S flat SHALL valh-e right to continue to offer the Properly for sale. II Seller accepts another written offer, Seller shall give Buyer wrillen not -1 i remove this contingency in writing, (it.) provide written verifi lion of sufficient funds to close escrow on this sale without l e-s W6 -DI yuyer's Property, and (III) comply with the following additional far u emeri If Buye 115TO complete those actions wi to 72 (or ) hours After receipt of such notice, Seller may ca cal this Agreement in writing. OR ❑ (2)-( PLIES ONLY IF CHECKED:) Seller StALL NOT have the right to continue to offer the Properly tort sale, xcept for back-up offers. 16. TIME PERIODS/DISAPPROVAL RIGHTS/REMOVAL OF CONTINGENCIES/CANCELLATION RIGHTS: - A. TIME PERIODS: The following time periods shall apply, unless changed by mutual written agreement: (1) SELLER HAS: 5 (or ❑ ) Days After Acceptance to, as applicable, order, request or complete, and 2 Days After receipt (or completion) to provide to. Buyer all reports, disclosures, and information for which Seller is responsible under paragraphs 4, 6. 7A, 78, 7C. and 6. (2) BUYER HAS:,(a) 10 (oro Days After Acceptance to complete all Inspeclions, investigations and review of reports and other applicable information for which Buyer is responsible, with an additional 7 Days to complete geologic Inspections, and 10.(or Days after Buyer's receipt of Lead Disclosures pursuant to paragraph 6A to complete Inspections for lead-based paint and lead-based paint hazards. WITHIN THIS TIME, Buyer must either disapprove in writing any items, (including, it applicable, the pest control Report under paragraph 40(1)) which are unacceptable to Buyer, or T move any contingency or disapproval right associated with that item by the active or passive method, as specified below; (b) 5 (orX, 0) Days Alter receipt of (i) each of the items in paragraph 16A(1); and (II) notice of code and legal violations under paragraph 7D, to either disapprove in writing any items which are unacceptable to Buyer, or to remove any contingency or disapproval right associated with that item, by the active or passive method, as specified below. (3) SELLER'S RESPONSE TO BUYER'S DISAPPROVALS: Seller shall have 5 (or ❑ Days Alter receipt of Buyer's written notice.of -items reasonably disapproved, to respond it, writing-11 Seiler. refuses or is unable to make repairs to, or correct, any items reasonably disapproved by Buyer, or II Seller does not respond within the time period specified, Buyer shall have 5 (or ❑ -).Days After receipl;of Seller's response, or after the expiration of the: time for Seller to respond, Avhippever opcurs first, to cancel this Agreement in . writing.- , / n r B. ACTIVE OR PASSIVE REMOVAL OF BUYER'S CONTINGENCIES: (1) ❑ ACTIVE METHOD (APPLIES IF CHECKED): II Buyer does not give Seller writteri!hotige o~f/ hems reasonably disapproved,?emovpI of contingencies or disapproval right, or notice of cancellation within the time periodsldsbecdietl,x$eller shall haveSI YldhI,Iolca qel, this Agreement by. giving written notice to Buyer.- ~-IL / Our (2). PASSIVE METHOD (Applies UNLESS Active Method is checked): If Buyer does not give So)erfWril(en,ootice`ol rTems reasonably cifie . - disapproved, or of removal of contingencies or disapproval right, or notice of cancellation within the time periods~peciliedrBUyer"shall be deemed to have removed and waived. any contingency or disapproval right, or the right to cancel, associated with that item. C. EFFECT OF CONTINGENCY REMOVAL; If Buyer removes any contingency or cancellation right by the active or passive method, as applicable, Buyer shall conclusively be deemed to have: (1) Completed ail Inspections, invesligations, and review of reports and other applicable information and disclosures perlaining to that contingency or cancellation right; (2) Elected to proceed with the transaction; and, (3) Assumed all liability, responsibility, and expense for repairs or corrections pertaining to that contingency or cancellation right, or lot friability to obtain fina in t e- contingency pertains to financing, except for items which Seller has agreed in writing to repair or correct.. - Buyer and SelleracKnoWl dge. receipl of copy of this page, Much constitutes Page 3 of 121 Pages. OFFICE USE ONLY Buyer's Initial- ej ( ) Seller's Initials ( ) ( ) Reviewed Broker ' REVISED 4199 or0esignaa _ E PRINTonTE Date 1`~ r an, n DEC 99 L'UILJ,rD'\~f `~F-I FI!J 'IT /-JA . Property Address: qr1 2 /-J {:/,1 T~X r~,tlin~., 1~,6✓_Or ;~r'/ Date: e, r d-p D. CANCELLATION OF SALEIESCROW; RETURN OF DEPOSITS: If Buyer or Seller gives written NOTICE OF CANCELLATION pursuant to rights duly exercised under the terms of this Agreement, Buyer and Seller agree to sign mutual instructions to cancel the sale and escrow and release deposits, loss fees and costs, to the party entitled to tine funds. Foes and costs may be payable to service providers and vendors for servicet and products provided during escrow. Release of funds will require mutual, signed release instructions from both Buyer and Seller, judicial decision, or arbitration award. A party may be subject to a civil penalty of up to $1,000 for refusal to sign such Instructions, ~if no good faith dispute exists as to who Is entitled to the deposited funds (Civil Code §1057.3). 17. REPAIRS: Repairs under this Agreement shall be completed prior to Close Of Escrow, unless otherwise agreed in writing. Work to be performed at Sollar's expense may be performed by Seller or through others, provided that work complies with applicable laws, including governmental permit, inspection, and approval requirements. Repairs shall be performed in a skillful manner with materials of quality comparable to existing materials. It is understood that exact restoration of appearance or cosmetic items following all Repairs may not be possible. 18. WITHHOLDING TAXES: Seller and Buyer agree to execute and deliver any instrument, affidavit, statement, or instruction reasonably necessary to comply with federal (FIRPTA) and California withholding Laws, if required (such as C.A.R. Forms AS-11 and AB-11). 19. KEYS: At the time possession is made available to Buyer, Seller shall provide keys and/or means to operate all Property locks, mailboxes, security systems, alarms, and garage door openers. If the Property is a unit ina condominium or subdivision, Buyer may be required to pay a deposit to the HOA to obtain keys to accessible HOA facilities. 2o. LIQUIDATED DAMAGES: If Buyer fails;to.complete this purchase by reason of any :default of Buyer, Seller shall retain, as liquidated damages for bi:each of contract, the deposit actually paid. However, if the Property is a dwelling with no more than four units, one of which Buyer intends to occupy, then the amount retained shall be no more than 3% of the purchase price. Any.excess shall be returned to Buyer. Buyer and Seller shall also sign a separate liquidated damages provision-for-apy increased deposit. (C.A.R. Form RID-11 shall fulfill this requirement.) Buyer's Iniili~s/= 1 Seller's Initials / 21. DISPUTE RESOLUTION: , A. MEDIATION: Buyer and Seller agree to mediale any dispute or claim arising between them out of this Agreement, or any resulting transaction, before resorting to arbitration or court action, subject to paragraphs 21C and D below. Mediation lees, it any, shall be divided equally among the parties involved. If any party commences an action based on a dispute or claim to which this paragraph applies, without first attempting to resolve the matter Through mediation, [hen [hat party shall not be entitled to recover attorney's fees, even if they would otherwise be available to that party In any such action. THIS MEDIATION PROVISION APPLIES WHETHER OR NOT THE ARBITRATION PROVISION IS INITIALED. B. ARBITRATION OF DISPUTES: Buyer and Seller agree that any dispute or claim In Law or equity arising between them out of this Agreement or any resulting. transaction, which Is not settled through mediation, shall be decided by neutral, binding arbitration, subject to paragraphs 21C and D below. The arbitrator shall be a retired judge or justice, or an attorney with at least 5 years of residential real estate law experience, unless the parties mutually agree to a different arbitrator, who shall render an award In accordance with substantive California Law. In all olher respects, the arbitration shall be conducted in accordance with Part III, Title 9 of the California Code of Civil Procedure. Judgment upon the award of the arbitrator(s) may be entered in any court having jurisdiction. The parties shall have the right to discovery in accordance with Code of Civil Procedure §1283.05. "NOTICE: BY INITIALING 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 INITIALING 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 Initials Seller's Initials C. EXCLUSIONS FROM MEDIATION AND ARBITRATION: The following matters are excluded from Mediation and Arbitration: (a) Ajudicial - 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 §2905; (b) An unlawful defamer action; (c) The filing or enforcement of a mechanic's lien; (d) Any matter which is within the jurisdiction of a probate, small claims, or bankruptcy 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 court 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 violation of the mediation and arbitration provisions. D. BROKERS: Buyer and Seller agree to mediale and arbitrate disputes or claims involving either or both Brokers, provided either or both Brokers shall have agreed to such mediation or arbitration, prior to or within a reasonable time after the dispute or claim is presented to Brokers. Any election by either or both Brokers to participate in mediation or arbitration shall not result in Brokers being deemed parties to the Agreement. 22. DEFINITIONS: As used in this Agreement: A. "Acceptance" means the time the offer or final counter offer is accepted in writing by the other party, in accordance with this Agreement or the terms of the final counter offer. - - B. "Agreement" means the terms and conditions of this Residential Purchase Agreement and any counter offer. C. "bays" means calendar days, unless olhenvise required by Law. D. "Days After means the specified number of calendar days after the occurrence of the event specified; not counting the calendar date on which the specified event occurs. E. "Close Of Escrow" means the dale the grant deed, or other evidenco of transfer of title, is recorded. - - - F. "Law" means any law, code, statute, ordinance, regulation, or rule, which is adopted by a controlling city, county, stale or federal legislative or judicial body or agency. - , G. "Repairs" means any repairs, alterations, replacements, or modifications, (including pest control work) of the Property. H.. "Pest Control Certification" means a written statement made by a registered structural pest control company that on the date of inspection or re-inspection, the Property is "free" or is "now free" of "evidence of active infestation in the'vigibleVaddl aftessible'dre1d_d1P. ,)nd Correct. 1. Section 1 means infestation or infection which is evident. Section 2 means present condilions FlikelyJto lead Ib, inleslallofgpefblEcaah. our J. Singular and Plural terms each include the other, when appropriate. flir' gg K. C.A.R. Form means the specific form referenced, or another comparable form agreed to b ~ )14ne parllesl,-,(f 2 r / ~4n'f.C dsr' 23. MULTIPLE LISTING SERVICE ("MLS"): Brokers are authorized to report the lemns of Ihis Transji~~ I1~apynyaTy~r\);q~tialgb)shed and disseminated to persons and entities authorized to use the information, on terms approved by the MLS. Buyer and Selle /,acknowlgdgo receipt of copy of this page, which constitutes Page 4 of t' Pages. Buyer's Initials 1ri-, . ( ) Seller's Initials ( ) ( ) REVISED 4/99 nDEC 99rE i3i.,E HIB IT A v~ -OFFICE USE ONLY - Roviewed b broker or Designee- wuee _.•,:,,;,0 Date d`Y`~ Property Address: 9 1,- y r~i ,1,3 iz ~Y -)?,2 ~ /,CA P ~IQ/7 9 t' Date: _o U - ~ nn 24. EQUAL HOUSING OPPORTUNITY: The Property Is sold in compliance with federal, slate, and local anti-discrimination Laws. ' 25. ATTORNEY'S FEES: In any action, proceeding, or arbitration between Buyer and Seller arising out of this Agreement, the prevailing Buyer or Seller shall be entitled to reasonable attorney's fees and costs from the nbh-prevailing Buyer or Seller, except as provided In paragraph 21 A. - 26. SELECTION OF SERVICE PROVIDERS: If Brokers give Buyer or Seller referrals to persons, vendors, or service or product providers ("Providers"), Brokers do not guarantee the performance of any of those Providers. Buyer and Seller may select ANY. Providers of their own choosing. 27. TIME OF ESSENCE; ENTIRE CONTRACT; CHANGES: Time is orthe essence. All understandings between the parties are incorporated In this Agreement. 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. This Agreement may not be extended, amended, modified, altered, or changed, except in writing signed by Buyer and Seller. 2e. OTHER TERMS AND CONDITIONS, including ATTACHED SUPPLEMENTS: 29.. AGENCY CONFIRMATION: The following agency relationships are here y confirmed for this transaction: 7,7 od .w cr ~u~~J xx,a✓>/ Listing Agenb~ (Print Firm Name) is the agent of (check one): A o n 3 .1/pu,v-y D the Seller exclusively; or C1 both the Buyer and Seller. - Selling Agent: _ y 1,i) - ,tr a s (Print Firm Name) (it not same as Listing Agent) is the agent of (check one): the Buyer exclusively; or'D INe. Seller exclusively; or EJ both the Buyer and Seller. Real Estate Brokers are not parties to the.Agreement between Buyer and Seller. 30. OFFER: This is an offer to purchase the Property on the above terms and conditions. All paragraphs with spaces for initials by Buyer and Seller are incorporated in this Agreement only if initialed by all parties. If at least one but not all parties initial, a counter oller is required until agreement is reached. Unless Acceptance of Offer is signed by Seller,. and a signed copy delivered in person, by mail, or facsimile, and personally receive by Buyer, or by Yq ,fAr a J ~ , who is authorized to receive it, b dale r2 + AM~IN ' offer shall be doomed revoked and the deposit shall be returned. Buyer has read and acknowledges receipt of a copy of the offer and agrees to the above confirmation of agency relationships. It this offer is accepted and Buyer subsequently defaults, Buyer may be responsible for payment of Brokers' compensation. This Agreement and any supplement, addendum, or modification, including any photocopy or facsimile,. may be signed in two or more counterparts, all of which shall constitute one and the same writing. ' ' ' Buyer and Seller acknowledge and agree that Brokers: (a) Do not.decide what price Buyer should pay or Seller should accept; (b) Do not guarantee the condition of the Property; (c) Shall not be responsible for defects that are not known to Broker(s) and are not visually observable in reasonably accessible areas of the Property; (d) Do' not guarantee the performance or Repairs of others who have provided services or products to Buyer or Seller; (e) Cannot identify location of boundary lines or other items affecting Property title; (f) Cannot verify inspection reports; square footage or representations of others; (g) Cannot provide legal or tax advice; (h) Will not provide other advice or information that exceeds the knowledge, education, and experience required to obtain a real estate license. Buyer and Seller agree that they will seek legal tax, insurance, title, and other desired assistance from appropriate professionals. Z2 4/- BUYER BUYER Tlu h/~ " 31. BROKER COMPENSATIO : Sell regress to pay compensa ion for services as follows: µ _7 ;7G e .a rp ~I f, to A i c. h, Ii7cr / ar' Broker, and ' to Broker, payable: (a) On recordation of the deed or other evidence of title; or (b) If completion of sale is prevented by default or Seller, upon Seller's default; or, (c) It completion or sale is prevented by default or Buyer, only if and when Seller collects damages from Buyer, by suit or otherwise, and then in an amount equal to one-hall of the damages recovered, but not to exceed the above compensation, alter first deducting title and escrow expenses and the expenses or collection, if any. Seller hereby irrevocably assigns to Brokers such compensation from Seller's proceeds, and irrevocably instructs Escrow Holder to disburse those funds to Brokers at close of escrow. Commission instructions can be amended or revoked only with the written consent of Brokers. In any action, proceeding or arbitration relating to the payment of such compensation, the prevailing party shall be entitled to reasonable attorney's lees and costs, except as provided in paragraph 21 A. 32. ACCEPTANCE OF OFFER: Seller warrants that Seller is the owner of this Properly, or has the authority to execute this Agreement. Seller accepts the above error, agrees to sell the Property on the above terms and conditions, and agrees to the above confirmation of agency relationships. Seller has read and acknowledges receipt of a copy of this Agreement, and authorizes Broker to deliver a signed copy to Buyer. If Checked: 0 SUBJECT TO ATTACHED COUNTER OFFER, DATED Date ~~2r1ii'i<°r) r(, nn a truce 4nri correct r in &is ACKNOwLEDGMENT, OF RECEIPT: Buyer or authorikedorile'nbacknbm wl lg~sfrec¢i{i1~6f AlghffMcceptance on- (date) (Initials) at _AM/PM. FIDEI I1Y ATONAL TITLE . kgency relationships are confirmed as above: Real Estate Brokers are not parties to the Agreement between Buyer and Seller., receipt for deposit is acknowledged: real Estate Broker (Selling Firm Name) ddress ey o eal Estate Broker (Listing Firm Name) ddress BY Dale 6 <Z -y ,P- Dv Pho r ax/email By Dale n Phone/Fax/email its form is available for use by the entire real estate industry. It is not intended' REVISED 4/99 OFFICE USE ON A,P ~ identify the user as a REALTOR". REALTOR" is a registered collective Reviewed by Broke 3mbership mark which may be used only by members of the NATIONAL Page 5 of Pages. ISOCIATION OF REALTORS" who subscribe to its Code of Ethics. or Designee uv~ T WDATE 8..EXH ' Dale 1T A . AiLIFORNi Af.t A SSO CIATIONIt BUYER'S N ,7 OF RLALTORs®d Property Address: d',.1 ' lTe INSPECTION ADVISORY ('Property") IMPORTANCE OF PROPERTY INSPECTION: The physical, condition of the land and improvements being purchased are not guaranteed by either Seller.or Brokers, except as specifically set forth in the purchase agreement. For this reason, Buyer should conduct a thorough inspection of the Property personally and with professionals, who should provide a written report of their Inspections. If the professionals recommend further Investigation, tests, or inspections, Buyer should contact qualified experts to conduct such additional investigations, tests, or inspections. Disclosure duties: The law requires Seller and Brokers to disclose to Buyer all material facts known to them which affect the value or desirability of the Property. In sales involving residential dwellings with no.more than four units, Brokers have a duly to make a diligent visual inspection of the accessible areas of the Property, and to disclose the results of that inspection. However, as some Property defects or conditions may not be discoverable from a visual inspection, it is possible neither Seller nor Brokers are aware of them. Buyer duties: Buyer has an affirmative duty to exercise reasonable care to protect himself or herself, including discovery of the legal, practical and technical implications of disclosed facts, and the investigation of information and facts which are known to Buyer, or are within the diligent attention and observation of Buyer:.Property inspectiori's:;Brdkers do not have expertise, and therefore cannot advise Buyer on many items, such as soil stability, geologic conditions, hazardous substances, structural conditions of the foundation or other improvements, or the condition of the roof, heating, air conditioning, plumbing, electrical, sewer, septic, waste disposal, or other system. The only way to accurately determine the condition of the Property is through an inspection by an appropriate professional selected by Buyer. YOU ARE ADVISED TO CONDUCT. INSPECTIONS OF THE ENTIRE PROPERTY, INCLUDING BUT NOT LIMITED TO THE FOLLOWING: 1. GENERAL CONDITION OF THEPROPERTY, ITS SYSTEMS AND COMPONENTS: Foundation, roof, plumbing, healing, air conditioning, electrical, mechanical, security, pooVspa, and other structural and non-structural systems and components, built-in appliances, any personal property included in the sale, and energy efficiency of the Property. (Structural engineers, are best suited to determine possible design or construction defects, and whether improvements are structurally sound.) - 2., SQUARE FOOTAGE, AGE, BOUNDARIES: Square footage, room dimensions, lot size, age of improvements, and`boundaries. Any numerical statements regarding these items are APPROXIMATIONS ONLY, and have not been and cannot be verified by Brokers. Fences, hedges, walls, retaining walls, and other natural or constructed barriers or markers do not necessarily identity true Property boundaries. (An appraiser, architect, surveyor, or civil engineer is best suited to determine respectively square footage, dimensions and boundaries of the Property.) 3. SOIL STABILITY/GEOLOGIC CONDITIONS: Existence of fill or compacted soil, or expansive or contracting soil, susceptibility to slippage, settling or movement, and the adequacy of drainage. These types of inspections are particularly important for hillside or sloped properties, but the referenced conditions may also exist on flat land. (Geotechnical engineers, are best suited to determine such conditions, causes, and remedies.) 4. ROOF: Present condition, approximate age, leaks, and remaining useful life. (Roofing contractors are best suited to determine these conditions.) 5. POOUSPA:: Whether there are any cracks, leaks or operational problems. (Pool contractors are best suited to determine these conditions.) 6. WASTE DISPOSAL: Type, size, adequacy, capacity and condition of sewer and septic systems and components, connection to sewer, and applicable fees. 7. WATER ANQ UTILITIES; WELL SYSTEMS AND COMPONENTS: Water and utility availability, use restrictions, and costs. Adequacy, condition, and performance of well systems and components. 9. ENVIRONMENTAL HAZARDS: Potential environmental hazards, including asbestos, lead-based paint and other lead contamination, methane, other gases, fuel, oil or chemical slppage tanks, contaminated soil or water, hazardous waste, waste disposal sites, electromagnetic fields, nuclear sources, and other substances, materials, products, or conditions. (For further information, read the booklet `Environmental Hazards: A Guide for Homeowners and Buyers," or consult an appropriate professional.) 9. EARTHQUAKE AND FLOOD; INSURANCE AVAILABILITY: Susceptibility of'lhe Property to earthquake hazards and propensity of the Propert y to flood.. These and other conditions may affect the availability and need for certain types of insurance. (Geologist, Geolechnic Engineer and insurance agents are best suited to provide information on these conditions.) 10. GOVERNMENTAL REQUIREMENTS AND LIMITATIONS: Permits, inspections, certificates, zoning, other governmental limitations, restrictions, and requirements affecting the current or luture use of the Property, its development or size. (Such information is available through appropriate governmental agencies and private information providers. Brokers are not,quafified to obtain, review, or interpret any such information.) 11. RENTAL PROPERTY RESTRICTIONS: Some cities and counties impose restrictions which may limit the amount of rent that can be charged, the maximum number of persons who can occupy the Property, and the circumstances in which tenancies can be terminated. Deadboll or other locks and security systems for doors anti windows should be examined to determine whether they satisfy legal requirements (Local government agencies or locksmiths, respectively, can give information about these restrictions and requirements.) 12. NEIGHBORHOOD, AREA, SUBDIVISION CONDITIONS; PERSONAL FACTORS: Neighborhood or area conditions, including schools, proximity and adequacy of law enforcement, crime statistics, the proximity of registered felons or offenders, lire protection, other governmental services, proximity to commercial, industrial or agricultural activities, exisfing and proposed transportation, construction and development which may affect noise, view, or traffic, airport noise, noise or odor from any source, wild and domestic animals; other nuisances, hazards, or circumstances, protected species, welland properties, historic or other governmentally protected sites or improvements, facilities and condition of common areas of common interest subdivisions, and possible lack of compliance with any governing documents or Homeowners' Association requirements, conditions and influences of significance to certain cultures and/or religions, and personal.needs, requirements and preferences of Buyer. Buyer acknowledges and agrees that Brokers: (a) Do not guarantee the condition of the Property; (b) Shall not be responsible for defects that are not known to Broker(s) or are not visually observable in reasonably and normally accessible areas of the Property; (c) Cannot verify Information contained In Inspection reports, square footage or representations made by others; (d) Do not guarantee the performance of others who have provided services or products to Buyer or Seller; (e) Do not guarantee the adequacy or completeness of repairs made by Seller or others; (f) Cannot Identify Property boundary lines; and (g) Do not decide what price a buyer should pay or a seller should accept. Buyer agrees to seek desired assistance from appropriate professionals. , ,"vIvuur-. vratu I U INVt~ I IOAI t I Nb CONDITION AND SUITABILITY' OF ALL ASPECTS OF THE PROPERTY. IF YOU DO NOT DO SO, YOU ARE ACTING AGAINST THE ADVICE OF BROKERS- By signing be u r acknowledges receipt of a copy of this document. Buyer is encouraged to read it carefully; BGy I natur ~Buyer Signature 8 Dale, Buyer(s) (Print Name(s)) f. /V` cx rJ / t 1)J@g ~ E ,~rT,r. nr7n . M Current Address;:.:. f7 AL) LL S7. I Sfi/'YE /~d.✓ , r:.:SAr~ti•Z~~S 4r j~ri/~ / /{_I'rry Y j i trll'g l!1 OU/ THIS FORM HAS BEEN APPROVED BYTHE CALIFORNIAASSOCIATION OF REALTORS* (C.A.R.). NO REPRESENTATION IS MADE A5 i~ Tf3FGg6VALIbITYDR ADEQUACY OF ANY. PROVISION IN ANY SPECIFIC TRANSACTION. A REAL ESTATE BROKER IS THE PERSON QUALIFIED TO B g AIS~ISP lici~ EAL CSJA TRANSACTIONS. IF..YOU DESIRE LEGAL OR TAX ADVICE, CONSULTAN APPROPRIATE PROFESSIONAL. i° . /ES-on This form is available for use by the entire real estate Industry. It Is not intended to identity the user as a REALTORS. REALTORS Is a registered collective membership mark which may be used only by members of the NATIONAL ASSOCIATION OF REALTO. who subscribe to its Code of Ethics. pv he copyright laws of the. United States (Title 17 U.S. Cede) forbid the unauthorized reproduction of this form, or any portion thereof, by p L locoTA rachlee or any other-means, Including facsimile or computerized formats. Copyright © 1997-1998, CALIFORNIA ASSOCIATION OF REA NC, ALL RIGHTS RESERVED. _ OFFICE USE Published and Distributed by: - ONLY REAL ESTATE BUSINESS SERVICES, INC. REVISED 4/98 Reviewed by Broker H subsrdrary of the CAL/FORNIA ASSOCIATION OF REALTORSS ' Designee _ ® 525 South Virgil Avenue. Los Angeles. California 90020 Page 6 at Pages. -D Dat te 'tau wusuc ~C PRINT DATE r' ~1 4 bec va R Ir A 1Na'6~A