HomeMy WebLinkAbout08/05/1986 Item 15 - Agreement of Option to Sell Remainder Portion of 148-182 HigueraW ctty of san ,;ls oBtspo '
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CG,IJNCIL AGIENDA FIEPGIFIT
5 198 6
MEETING DATE:
ITEM NUMBER:
Anne M. llussell, Assist-ant City AttorneyFROM
Ag;reenent to Sell Remainder portj.on of property at148-182 Hignela, Assunring City Exercises 0ption,or in the Alternative, Offer to SelI ilre 0ption.
SUBJECT
Adopt Resolution approving agreeillent with prtul
Jacqueline Prather rt-'lating to pi:operty
at 148-182 Higuera Street.
CAO BECOMMENDATION
and
BACKGROUND:
1n the capital l';rcilitir:s I'l.an, the council has planneci for Lhewidetritrg of Higuera Street. north of the intersection with MirdonrtnRoad. rhe ci.'P projects property acquisition ir-r the area for f ,isca.lyear 1986*87, and construction of the gctual improvenrents ip thefollowing fiscaL year. The 1986-8? burlget appropriates $4s0,000 foraccluisition.
In order to w,iden Higuera, the city wi.l I neecl to ar:quire land fromsevera] property owrlers. rn November, 1g8s, the city acquired anoption frnn the Evans fam.ily to pur-chase the parcel locatecl at thesonthwest corner of Higuera and south street. The option nrust beexercised by Novenber 15, Lg86, with escrow .bo close by .Ianuary 1s,1987. The city paid $20,000 for the option purchase price. The c:itynrttst. pay an additional $490,000'Lo purchase the property if the c-ityexercises the option.
Dur-ing'egotiations with an adjacent prope.ty owner, paul and./acqueline Prather, to acquire property also necessary for the streetwidetring, the Prathers offerecl to purchase that pr:r'tiorr of Lhe Evinlsproperty renairring after the street wiclening for $4Tg,000 cash,trssumirrp; tire ci Ly exercisr-:s the option, or requested an ollportun.ityto purchase the option itsetf for ilre price the city paid ($20,000).shou.ld ther city exerr:ise the option with the Evans family, theagreement provides for a double escrow, thereby linriting the amountof motrey the City mtts.t. conte up with. In the event ilrat. Lhe prather.rl
breacired the agreenlellt, or the city deciciecl not to sell the r.enrai'clerportion, the City would ueed adcliticlnal funds to cnver Lhe fullpurchase pt'ice ' There are 4 mi I I ion clol lirrs avai lable through the
'Asset Transf er Progrant, a suf f icient portion of wirictr is avaj lable topurchase the Evans property or-rtright, in addition to the otherrig;ht-of -way areas.
Asi par1. of the agreenrent-, tire city is requir-ed to tlemolish al1structures and clear the site within 6 nonths of the close ofescrow. Ilenolition of the str:uctures is rrecessary for the streetwidening. In addition, arly tenants renaining on the property at the
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'Wro glliiti JXB'Efu oo FrEPoFrr
time the city acquires it may need to be relocated by the city. The
agreenent requires that this be done within 30 days after the closeof escrow. Also, as a part of the street widening, the city woulclinstalr curb, gutter and sidewalk improvenents along the Higuerra
frotrtage at the city's expense. This agreement was approvecl by theCity Council previously.
ALTERNATIVES;
1 Adopt Resolution approving agreernent with Paul and Jacqueline
Prather.
2, Do not aclopt Resolution
PROS AND CONS:
Adop'tion of the Resolution would allow the City to minimize the
amouttt of resources treeded from the Asset Transfer Program. Assumingthat demolition costs dcl not exceed $40,000, then the city would beselling the Evans property at a sguare footage price approxinrately
equal to the anount it invested in the pr.oper"ty, i.e., acquisition
costs, pltts denolition costs. Cnrb, gutter and sidewalk improvements
which woulcl be installed as a part of the street widening, or anypossible tenant relocation costs which may be necessitated by thestreet wiclening would be additiclnal costs associated with ilreproperty wirich would not be recovered by this sa]e. should the city
decide not lo exercise the Evans option, the agreement provides for.
an offer to assign tire option to the Prathers, for the $20,000 theCity paid for the option" The Prathers arc not obligated to purchase
the Option; they would have a five-day period after notice from ilreCity to do so. Thereafter the City would be free to assigu it to
anyone erse. If the 0ption should not be assignable, the prathers
would be entitled to a refund of the $20,000, but no consequential
damages.
Failure to adopt ttre Resolution would require the city to utilize
$490,000 in resources fron Asset Transfer Progrirm, in addition to
other righi:-of-way acquisition.
FISCAI IMPACTI
There are $4 million dollars available througir the Asset. Transfer
Program for Madonna,/Higuer.a improvements. This is sufficient to
cover acquisition of the Evans Property outright. Howevr:r, since the
rc'mainder portion of the property is not needed by the city, the cityultimately would be selling the propc.rty. The iegrelement with the
Prathers would free up resources for other road related improvements
as approved by Council.
Clry oF san L )s oBtspo
CG'IJNCIL AGIETV DA FIE]'GIFIT
,W
RECOMMENDATION I
Adopt Resolutiorr approvi.ng agreement with paul and Jacqueline
Pra ther .
ATTACHMENTS:
1 Agreemen't with Paul and Jacqueline Prather regarding 148-182
Hignera Street with exhibits (Iegal descriptions, purchase trnclsale agreement, assignnent of option forn).
2 Resolution approving agreenrent and authorizing Mayor to execnte
the same.
1
AGREEMENT BETWEEN CITV OF SAN LUIS OBISPO AND PAUL PRATHER AND
JACQUETINE PRATHER REGARDING THE PROPERTY LOCATED AT
748-782 HIGUERA STREET
Ttris Agreement is nade and entered into this 5th day of August, 1986,
by and between the CITY OF SAN LUIS OBISP0, a chartered nunicipal
corporation of the State of California, ("City") and PAUL PRATHER and
JACQUELINE PRATHER, husband and wife ("Prather"); jointly referred to
herein as the "parties".
REC ITATS
The parties enter into and execute this Agreenent with knowledge of
and reliance on the following factsl
1. The City, by adoption of its Capital Facilities Plan, intends to
widen Higuera Street, north of the intersection with Madonna Road in
Fiscal Year 1987-88. In order to do so, the City must acquire land for
right-of-way purposes fron several property owners,
2, fn November, 1985, the City acquired an option from Lorraine Evans
and the Estate of Gerald B. Evans to purchase the parcel located at the
southwest corner of Higuera and South Street, conmonly known as 148-182
Higuera Street ("Evans Property"), for the sunr of $+90,000 cash (the
"0ption"). The City paid $20,000 to purchase the Option. The Option must
be exercised by November 15, 1986, with escrow to close by January 15,
1987. A legal description of the Evans Property is attached hereto as
Exhibit "1" and incorporated herein by this reference.
3. In order to widen Higuera Street, the City needs to (a) acquire
the easterly 25 feet, or approxinrately 5,510 square feet, of the Evans
property, (b) demolish the existing buildings on the Evans Property. A
copy of the prelimitrary developnent plan and legal description of widening
EXHItsIT ''A''
area is attached hereto as Exhibit "2", incorporated herein by this
reference.
4. The City has no present or future need for that portion of the
Evans Property remaining after the street is widened (approxinately
34,249.6+ square feet) (the "Evans Remainder"). A legal description of
the Evans Remainder is attached hereto as Exhibit "3" and incorporated
herein by this reference.
5. The Council finds that it would be in the City's best interest to
either sell the Evans Renainder to Prather, contingent upon the City
exercising the Option, or should the City decide not to exercise the
Option, to assign the Option to Prather for the price City paid to acquile
the Option.
6. Prather desires to either purchase the Evans Remainder at an
agreed price and under specified terms and conditions, or to acquire the
City's Option.
NOW, THEREF0RE, in consideration of the mutual and respective
covelrants and promises set forth herein, and subject to all the terns and
conditions hereof, the parties agree as follows:
A. Purchase and Sale of Evans Remainder.
1, If City exercises the Option, then City agrees to sell to Prather,
and Prather agrees to buy fron City, the Evans Remainder for the sum of
Four Hundred Seventy Three Thousand Dollars ($4y9,000) cash, pursnant to
the terns and conditions set forth in that Purchase Agreenent and Escrow
Instructions ("Purchase Agreenetrt"), which is attached hereto as Exhibit
"4", and incorporated herein by this reference.
2. Upon City's exercise of the Option, the Purchase Agreenent shall
be inmediately effective and binding on both City and Prather without
further execution by the parties. Within ten (10) days of the City's
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exercise of the Option, City atrcl Prather shall open an escrow on the Evans
Remainder at the escrow conpany which is handlingthe escrow between the
City and Lorraine Evans and the Estate of Gerald B, Evans for the
acquisition of the Hvans Property. The escrows shall close conr:urrently.
B. Offer to Assign Option,
1. If City decides not to.exercise the Option, then City agrees to
offer to assign the 0ption to Prather for the sum of $20,000 cash. Suctr
offer shall be nailed, certified mail, return receipt requestetl, wit-hin
five (5) days after City decides not to exercise the Option, but in no
event later than November 5, 1986, to Prather at Budget Rent-A-Car of
Santa Mar.ia, 617 South Broadway, Santa Maria, C,A 93454. The offer shall
expire at 5:00 p.nr. otr the fifth day following mailing of the offer, but
in no event later than Monday, Novenber 10, l-986, urrless, by the dat.e and
time specified above, Prather performs each of the following Acceptance
Criteria: (1) accepts the offer in writing; (2) hand delivers the
acceptance to the office of the City Attorney, 990 Palm Street, San Luis
Obispo, Califorrria; (3) opens an escrow at First American Title in San
Lttis Obispo, California, or other escrow company or agent mutually
acceptable to City and Prather; and (4) deposits the sum of $20,000 in
cash or by certified or cashier's check into the escrow described in the
innediately preceding subparagraph. Should Prather fail to perform al,l of
the Acceptance Criteria by the date and time specifjed, then (a) the offer
shall be null and void; (b) the City sirall be free to assign the Optiorr
to any other person; and (c) if requested by City, Prather shall duly
execute and acknowledge a quitclaim deed to the Evans Property and hand
deliver the sane to the office of the City Attorney by 5:00 p.m. on the
day followiug the expiration of the offelr, but in no event later than
Tuesday, November 11, 1986. Prather shall indemnify and save City
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harmless from any clains, dantages, or actions aris,ing ont of Prather.'s
failure to tinre-Iy execute and deliver the quit-claim deed.
2. Should Prather timely perform the Acceptance Criteria, tlien City
shall duly execute atrd acknowledge an Assignment of Option in the fornr
attached hereto as Exhibit "5" and incorporated herein by this refel'ence,
and deposit the same into the escrow opened by Prather within two (2)
business days of accept.auce of the offer, but in no event later than S:00
p.n' on Wednesday, November 13, 1986. City does not represent or warrant
that the Option is assignable. In the event the Option is not assignable,
Prather sltall have the right to repayment of thc: $20,000 within 30 days
written denand therefor. The retnrn of the $20,000 shall be Prather's
sole remedy in the event of non-.assignability of the Option. City does
not nake any representations or warranties concerning the Evans Proper.ty
by its execrttion of the Assignment of Option. Escrow fees and escrow
costs shall be split in the usual and custonlary manner. Any title
insurance on the assi.gnnent of option shall be paid for by Prather.
C. Entire Agreenent.
l.. This Agreenetrt contains the ent.lre agreenrent between the par'[ies
respecting the matters set forth herein, and supersedes any prior
agreenents between the parties respecting stich natters. This Agreement
nay not be altered or otherwise modified except by an instrunrent in
writing signed by the parties hereto.
D. Renresentation b v Counsel
1. City and Prather acknowledge that each of them is represented by
an attorney in this transaction. The parties agree tltat each party and
counsel have reviewed this Agreenent and that- any rule of construction to
the effect that anbiguities ar:e to be resolved by the drafting party shilll
not apply in the interpretation of this agreement or any anendments or
exhibits thereto.
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E Reouired Action o Citv atrd Prather
1, City and Prather agree to execute all instrunents and docunents
and to take all actions pursuant to the provisions hereof in order to
consummate the transactions herein contemplated.
IN WITNESS WHEREOF, the parties hereto have executed this ^Agreenent as
of the date and year first above written.
CITY
CITY OF SAN LUIS OBISPO
ATTEST
B
PRA
or Ron Dunin
aul Prather
ac ne Prather
Clerk Pamela V
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TOTAL AKIA. 55ID SN.FT
EVANS
A portion of Lot 1 in Block 1+g of J. Harford's ad.dition to the clty ofsan Luis obispo, ln the clty of san luis obispo, county of san r,uisObispo, State of California, according to a map filed for record in Book Aat Page 12 of Maps in the 0ffice of the county Recorder of said county,vhich is described as follows:
Beginning at the intersection of the vesterly line of Higuera st. andthe southerry line of south st. as shown on the map filed i.n Book 6 atpage 1QB of Records of Surveys; thence South jo jy OOn \fest alongthe vresterly line of Higuera st. a distance of 216.+6 feet to a point;thence North 860 48, OA" Vest a distance of 25.OA feet, to a point;thence North 5o lj' aa' East paraller to the westerly line ofHiguera St. a distance of 2e6.76 feet to a point; thence on a curve tothe left with a radius of 20.00 through an angle of g4o 26' 5A" tothe southerly line of South St.; thence South B1o j1' jTr East alongsaid southerly llne a distance of 4i.2? feet to the porNr oF
BEGINNING.
tpg/ evans-2
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That portl0n of lot l ln Brock LAg of J. Earford's Addltl0n to the cltyof sau l.le ob*po, ro tn.-iily or san Lulo-oir."po, county of san Lutooblepo, statc of cal1fo.or",i:"ordlng to n"p-irled for rccord Aprlr,rB76 tu Book A at paSc Ln ;t Hapa, dcacrlbed aa follona:
(bn'enclug at the. Northcae_terry corner of gald tot l; and runnlng thencesoutherly along-the raateriy-ii": of aald ;;; 1.;13.gz feet to thc Northeasterrvcorner of thc propcrty,"oo"iy"J to Angerlo"-iir.".1, by deed recordedJune 17' 1936 ln *:n^l?zr il;; 92 of-offrir"i n""orda, recorda of ealdcouutv; theuce y"*t -al' iol-fiJrt "roog the Northerry ito. oi lhe propertyao couveyed' 184'18 feet, -t.-o. reeel to-tii.-noatcrry rlue of gald Lotl; thcnce Northerry "toni JtJ wo"a.-rr! rro.,-z'st lg fect, @re oE rca8,to thc Northerly llne of-earJ r-ot; thcoc. raeterry along ""ia-lro.aherryIlne, l7l fectr !K)re or lcaa, to ib. porot oi iegrnnfurg.
Erceptlng thcrefron that portl0a deecrlbed 1n the deed to Martln v.#jl;lr *" recorded ei.'-e, 1e63 tu ioor ri*r pase 3e5 of off1cr.al
Aleo erceptlng thercfrou that portloo descrlbed ln tre dced to cl:sslcEqulP*nt and suppry, rnc-' " illlfo:og corporatton, recorded Jury 12,1977 tn Book 199i, irig"-iii "rirrrcral Recorde.
Also excepting therefrom-that portion described in the deed to the City ofSan Luis Obispo, recorded , l9g_, in Book _ , page '
,o f Of f i c i a I Rec ord s, des crEEd--as--fo-fT6Ts
Beginning at the intersection of the vesterly rine of Higuera st. andthe southerly line of south st. as showa on the map filed in Book 6 atpage 168 0f Records of surveys; thence south 50 15t oo, west a10ngthe westerly line of Hi.guera st. a distance of 216.46 feet to a point;
thence North 860 48' oou 1{est a distance of 25.ao feet to a point;
thence North 5o 15' OAf East paraLlel to the vesterly line ofHiguera st. a distance of 2aa.76 feet, to a point; thence on a curve tothe left with a radius of 2a.00 through an angle of g4o 26' 5o" tothe southerly line of South St.; thence South Blo 11' 50', East alongsaid southerly line a distance of 45.27 feet to the porNT oF
BEGINNINC I
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JS OIUTION No. 6046 (1986 Series
A RESOLUTION OI,I T}IE COUNCII, OF' TI{E CITY OF SAN LUIS
OBISPO APPROVING AN AGREEMENT BETWEEN THE
CITY AND PAUL AND .}ACQUELINE PRATTIER REGARDING THE
PROPERTY LOCATED'AT 148_182 HIGUERA STREET
IIE IT RES0LVED by the council of the city of san tuis Obispo as
follows:
SECTION L. That certain agreement, abtached hereto markecl Exhibit "A"
and incorporated herein by reference, between the City of San Luis Obispo
and Paul and Jacqueline Prather is hereby approved and the Mayor is
authorized to execute the sante.
SECTION 2. The City Clerk shall furnish a copy of this resolution and
a copy of the executed agreement approved by it to: PauI and Jacqueline
Prather, I'inance Director, PubIic Works Director, and City Attorney.
On motion of Council-woman Dovey , seconded by Cguncilrnan
Settle , and on the following roll
call vote:
AYESr Councilmembers Dovey, Settle, Griffin and llayor Dunin
NOES: None
ABSENT: Councilwoman Rappa
the foregoing Resolution was passed and adopted this 5th day
of August , 1996
-A
a
RON DUNIN
CLERK VOGES
* * {( rf )F tc rlc rk ,lc {. :*
a
City Adninl s
A EST
City torne
lVe ffi Pub c Wor ks Director
R 6046
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RESOLUTION N0. 6045 (1986 Series)
A RESOI,UTION OF'TTIE COUNCIL OF'THE CITY OF SAN LUIS
OBiSPO APPROVING AN AGREEMENT ACQUIRING RIGHT-OF-WAY AT
110 HIGUERA STREET FROM PAUI, AND JACQUELINE PRATIIER
BE IT RESOLVED by the Council of the City of San Luis Obispo as
fol I ows :
SECTION 1. That certain agreement, attached hereto malked Exhjbit "1"
and ittcorporated helein by reference, between the City of San Luis 0bispo
and Paul and Jacqueline Prather is hereby approved and the Mayor is
authorized to execute the same.
SECTION 2. The City Clerk shall furnish a copy of this resolution and
a copy of the executed agreement approved by it to: PauI and Jacgueline
Prather, Finance Dilector, Public works Director, and city Attorney.
0n motiou of Councilman Settle , seconded by Councilwoman
Dowev , and on the following roll
cal I vote
AYES; Councilmembers Settle, Dovey, Griffin and Mayor Dunin
NOES: None
ABSENT: Councilwoman Rappa
the foregoing Resolution was passed and adopted this 5th day
of st 1 986
a
A
AP
C CLERK PAMELA
Ci ty str
S
**r<XrktX***t(
a
Public Works rector
EST
City A rney
ce
Finance Dir or
R 6045
TO:
ATTN:
RE:
DATE:
BUYER:
PURCHASE AGREEI,IENT AND ESCROW INSTRUCTIONS
Ticor Title Insurance Company
L2L2 Marsh Street
San Luis Obispo, California 93401
Escrow OfficerI
Escrow Number
August, _, 1985.
Paul Prat,her and Jackie
community property Prather, husband and wife as
SELLER: The city of san Luis obispo, a chartered municiparcorporation
THfS PURCHASE AGREEIT{ENT is made and ent,ered into effectiveas of the date hereinafter s_et, fo.rth by and between the City-oiSan Luis obispo, a chartered municipaf corporation, hereinafterreferred to as tseller, and paur -prathef and .raiti.-p;;ah;;;husband and wife, hereinafter collect,ively referred to ." trBuyerilyhor as part, of their aqreement, airelt the forlowing g=a;;,instructions to Ticor ritre rnsurance company, hereinafterreferred to as 'tE_sgrow Agent,r, which, by its -acclptance hereof ,agrees to be bound by the terms and conditions set torth herein.
For valuable consideration, each of the parties hereto,int,ending to be legalry bound., does hereby agree is lotlows:
1. DESCRTPTION OF PROPERTY
]-.L General Description. Seller presently hasoption to purchase that ce.EEG parcer of real property =iiu.ti1 tne_ .c-ity of san Luis obispo, iounty of san r,iis- oliSpo, -st;
of california, assessorrs plrcel numlber 4-gol-17 as more furdescribed in Exhibit tAt atCached hereto and. incorpoiated. by threference. se'ljer agrees to serr and Buyer agreei to purcfraseportion of said parcel of rear propertyl conJirting oi 39,7sgplus or minus square feet less s,sio s{uare feet t6 be utirizby seller for the widening of Higueia street teavinj ;;balance of 34,249.6 plus or ninus square feet hereinaftreferred to as rrthe propertyrr and more rulry described in ExhibrrBrr attached hereto and hereby incorporated by this reference.
2. PURCHASE PRTCE FOR PROPERTY
an
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edet
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2.1- The purchase price of the property
Hundred seventy-Three fhousand and N0/100 ooriars-shall be Four($473,000.00.)
PRATHE3A. PUR
7 /3a/86
L
EX!-f gBfTffii* \\ tlrt
3. PAYMENT OF PURCHASE PRICE
3.1 Buyer sharr deposit with Escrow Agent the sum ofTwenty Thousand and N0/1oo Dorlars ($zo,ooo.oo1 witnin ten (10)days after the _ opening o.f escrow, as further set forth nerdin,said sum to be deposited into an interest bearing account fearinginterest for and on behalf of Buyeri
3.2 The entire purch.ase price including the d.epositset forth in paragraph 3.1 herein snht be paid in- cash th-roughescrow prior to the close of escrow. Buyer lnarr have the righ€and.option to apply the accrued interest on the deposit referieato in paragraph 3.1 herein. to the purchase price, provided thaiBuyer shall report said interest as income to'duyer for taxpurposesr or, to receive said interest in cash at the close ofescrow .
4. ITEMS FOR DELIVERY BY PARTIES
4.1 Deliveries by Buyer. Buyer sharl deliver thefollowing to Escrow Agent not rater than 4:30 p.m.r or the d.ateprior to the closing date for release and/oi disbursement toSeller and to pay Buyerrs costs hereunder.
4.1-.1 fhe cash paynent, of the purchase priceas re.quired by section 3, abover-to the extent -not pt""i6""ivdeposited with Escrow Agent, i
4.I.2 Funds required of Buyer as its share ofthe escrow fee9, closing costs and prorations pursuant to theprovisions of these Instructions unleis puyer ha-s made arrange-ments satisfactory to Escrow Agent to in?oice such amounts -to
Buyer for payment outside of escrow; and
4.I.3 A PreL irninary Change of OwnershipInformation Statenent as required. by thL count-y Assessor of SanLuis Obispo County.
4.2 serlers Deriveries. serrer sharr d.eliverfollowing to nscrow eger:t not tater than 4:30 p.m. on theprior to the crosing date for release and/oi recordingdelivery to Buyer and to pay selleris costs hereunder.
executed and
vest ing tit,Ie
nomineei and
PRATHE3A. PUR
7 /30/86
the
date
and
4.2.I A Grant, Deed f or the property, dulyacknowledged and in form suit,able foi recordinglt,o the Property in the name of Buyer or BuyerTs
5. CONDITION OF TITLE
5.L ritle. Titre shaIl be conveyed by serler byGrant Deed f ree of all liens, encumbrances, covenints, condi'-
2
tions, restrictions, easement,s, and rights of way of record,leases or other possessory interests, other than the follorirgi '
payable;
5.1.1 Then-current taxes not yet, delinquent;
5.1.2 Current assessments not yet then due and
5.1.3 Such other exceptions to title as areapproved by Buyer pursuant to section s.g -be10w; and
a*riburabreg"uil;n."ri.,Liir'iT=iT""&'"Yr1';ifffiJ'ijtlr'3""f ;;il;:ent,er upon the property for inspect,iori, surveyj-ng and. t6stingpurposes.
s-2 updated Titte Report. selrer shall cause an up-dated title report preparea uy Ticor Title irr".rr"rr." ofcalifornia to be derivered to nuylr within ten (t0i days aft,eiBuyerrs execution of this Agreernent and its acdeptanc6 by theEscrow Agent.
5.3 Approvat of Titre._ Bgyer sharl have fifteen (15)days after receipt of such upd.ated titre report to di;;pp;;;6exceptions t,o titre shown therein, other than ihose specirLld i;section 5.1, above, and those exceptions and exclusions set forthon that certain prelirninary title report prepared by Safeco Tit1ernsurance company dated D.ecember 2l , tsss-, wrricti Buyer herebyapproves. A copy of said title report is attached hereto, narke&Exhibit rr.rr and incorporated uy trris reference. rf writtennotice of disapp_rovaI, -specifying the items objected to, is ,rolfurnished to seller and t,o Escrow agent within -such iiill."- (i;tday period, tle updat,ed titre repori sharl be deemed approved u!Buyer. Buyer hereby approves any exception in said updited TitlaReport which. exclusivery.benefits Buyerrs adjacent property at1J.0 Higuera St,reet, San Luis Obispo, citifornij.
5.4 .Defects in Titre. serler shall have untir theschedured closing d-ate specified. in section 7 , below, to removethose exceptions referred to in paragraph 5.3 herein. rf, in thereasonable judgrnent of Buyer, seIIer has been unable t,o removesaid. exceptions by such dat,e, then Buyer, dt iis- option, --rnav
9-1gct (a) to proceed to close the escr6w,'or (b) to terminat6this escrow by giving written notlce of terminat,ion to EscrowAgent and to_ s91_1er prior to the expiration of ten (10) daysafter the scheduted closing dat,e. Shoutd Buyer givd wrii[6nnot'ice of termination of escr-ow as provlded hereiln, s6tler ana/oiEscrow Agent shall- return to Buyer any sums previousry paid't-seller pursuant to this Agreement,, ind any interest, accruedthereon, and sfrqLr pay alr escrow cancerratLon charges. Buyerand Seller sf311 thereupon be relieved and dischafged of inyfurther liability to one another hereunder for the pu-rchase .n&
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7 /30/86
3
sale of the Property.
6. CONDITIONS TO CLOSING
The Escrow Agent sharr file, record and d.eriver theclosing documents and disburse to seller the purchase price ileolher su_ms payabre to selrer hereunder proviaea tha€, dt theclosing dat,e:
Purchase
performed;
8.Seller as ofmonths, and
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6.1 occurrence of conditions. A1l conditions of thisAgreement and Escrow rnstruct,ions have been futly
6.2 rssuance of Title policv. Escrow Agent is theni! " position t Buyer a stand,ard coverageCLTA ownerrs policy.of title insurance-issued by Ticor TitieInsurance of .c3lifornia, in the usual form containing the usualprinted exceptions. The liability on such title fnsurinc" dii;tshalI be in an arnoun!, equal !9 trre purchase price of the pr-op.itvand said pollcy sharl show title t,o the propErty vested i"-i;t;;;or Buy.er I s n_ominee, subj ect only to thos-e exteptions to titrespecified in section 5.1, above, or approved by ariyer pursuant tosection 5.3 above. Buyer, at it;- option-may' in."".=" thecoverage under such policy but any additionat prernium sha1l be atthe cost and expense of Buyer; and
7. ESCROW OPENTNG AND CLOSING DATE
7.L Sgheduled opening Date. Seller shall cause escrowt'o. be opened within five (5) -o.ays after the effective aa€e-oithis agreement.
7.2 scheduled crosing Date. subject to an extensionas hereinafter: provided, escrow shall close 6n or before ;anuaiy15r L987, and concurrently with escrow to be opened betweeirseller and the Evans heirs at ficor Titre insurance ofCaliforniar of such other title insurance company or escrowcompany handlin_g said escrow. As used. herein, tile 6tosing-a;a;shall be the date on which a Grant Deed vesting tit1J io tft"Property in Buyer is recorded. in the offices -oc the countyRecorder of san Luis obispo county, t,he county in which thaProperty is situated; and
7.3
may be extende d only by wr tt,en instructions toexecuted by both Buyer and Se1ler.
8. PRORATIONS
The closing datethe Escrow Agent
1. - Esc-row Agent shall prorate between Buyer andthe close of escrow, on the basis of thirty-day (30)a 360 day year general and speclal propeity La:ies,
4
bonds and assessments on the Property for the then current fiscalyear.
9. PAYMENT OF ESCROW FEES AND CLOSING COSTS
9.r serlerrs costs. seller shall pay all documentaryand local transfer taxes related to the conveyance of title tath? Pro_perty to Buyer, the cost of the cLTi, ownerrs policyreferred to in-paragraph 6._2 herei_n, and the costs of prepaiiniand recordlng the Grant Deed for the property.
9-2 Buyerrs costq. Buyer shalr pay arr costs andfees related_ t,o any financing obtained by auyei, the costs ofpreparing, filing and/or recording any docrfrnends relat,ed thereto3ld shall pay any additional t,it,re poricy premiums in "*""""
-oi
the premiums of a st,andard CLTA ownei,s p6lfcy.
9.3 .prorated. costs and Fees. Except as otherwiseexpressly provided.herein, charges rnaae uy the g-scrow Agent forits services and other advances -made by nscrow Agent for record-ation and filing fees shall be allocited betwe-en and borne uVBuyer and Seller in accordance with the customary practice ;iEscrow Agent.
9.4 Cancellation Fees. Shou1d this escrow fait toclose on or before the scheduled closing d.ater or any extensiongSsrgof_ dS provided herein, due to the fault or neglelt, of auyeror Seller or the failure of Buyer or Seller to perform ttr-eirrespective obligatlons hereunder, t,henr a's betw6en Buyer andserler, all escrow cost,s and escrow fees shalr be paid'by ih;defaulting party.
10. TIME
Time is of the essence of each and every provision ofthis Agreement and the rnstruct,ions cont,ained, hereiln.
11. FATLURE OF CONDTTToNS; TERMTNATION
1l-.1 rf any condition to the crose of escrowspecified in this AgreemLnt fails to occur on or before theschedured crosing date, then any party who, in the exerclse orreasonabre.judgnent, believes it-iJ noC in default, in the pereoi-mance of its obligations under these Instructions and ttiat theo!h9! party is in default in the performance of its ob1igalio"",shall have the right to give writ,ten not,ice of terminit,ion ;ithis Agreement and Lhe escrow established hereunder to the EscrowAgent, specifying the reason therefore.
LL.2- pronptly upon receipt of any such notice,Escrow Agent shall furnish ? copy thereof to the other party. risuch other party does not give writ,ten not,ice to the Eslrow- Agent
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7/30/86 5
witlin ten (10) business days. after its receipt of a copy of thenotice of termination, objecting to the terminlation of t-hl escrow
a-nd_ setting forth the basis of such object,ion, then this "".rotshall be terminated. rf tinely written objection of the ternina-tion of this escrow is made bt the other -party, then the EscrowAgent shall proceed as provlded in section-L4.i, below.
11.3 The exercise of the right to terrninate shallnot, constitute a waiver of the rights which either party rnay hav-against the ot'her for breach of oi raiture to perfoin ils -i,fiq"-
tions hereunder. . subject to the provision-s of faragraprr s.therein, upon terrnination of the escrow as provide& neiei'n, anathe payment of its costs and fees, the Escrow Agent shall remitto .the_ party entitled theret,o any monies, docurients or instru-ments deposited with the Escrow Agent hereunder.
L2. BROKER'S COMMISSIONS
selrer represents and warrant,s t,o Buyer and Buyerrepresents and warrants to Sel1er that no brokerl salesmanr'otfinder has been engaged by it, respectivery, in cbnnection ,itr,the transaction conternplate$ by thiJ Agreement. Should ""V .iui*for anr brokerrs or finderrs fee or commission be m-aae inconnection with the negotiation, execution, or consunmat,ion ;ithe transaction_ contemplated by this agreement, Buyer shallindemnify, defend and rrora selIei harrnlesl from ana afainst ;t:uc! craim upon any st,atement, representation or agie"ment shownto have been made by Buyer, and seller sharl inddmnifv, aEi."dand hold Buyer harmless from and against any such cfiim UaseAupon any statement,, representation or agreement shown to havebeen made by Sel1er.
].3. ADDITIQNAL ESCROW TNSTRUCTIONS
The parties hereto agree to execute such addit,ionalescrow instru_ct,iol: as may reasonably be required nv the gscrowAggn! promptly after a request therefore fr-om said.-Agenti pro-vided, however, that, no such additionaL escrow instructiorr"'"[uifbe inconsistent with the terms or conditions hereof. Anvconflict' between !h. provisions of these instruciion!-i"a i"itprinted, standard form escrow instructions that may be executedby_ the parties shall be resolved. in favor of thesJ instrucif;;;unless expressry noted to the contrary by the parties in wiiting.
14. GENERAL INSTRUCTIONS
14.1 Escrow Fees; Indemnification
rees or rhe "=.L1" of,.,,. iY"1fT,f,"tl;,i";1,"1"5'3n:ii ;:iffill5lsuch Agentrs disbursementsr ds provided in section 9, above.
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L4.L.2 Buyer and Seller jointly and severallyagree to pay, and to hold Escrow Agent harmless fron and against,any and all costs, charges , damages, jud.grnents and attoineys tfees which Escrow Agent, may incur oi suffer -j.n connection with'orarising. out of this escrow, including those attributable to can-cellation of this escrow. upon notice of termination given -s
provided by these instructions, but, excluding those attriuutanieto the fault or neglect of Escrow Agent or it,s failure to perfonnits duties and obligations hereund.ei.
L4.2 Cqnflicting Demands. Should Escrow Agent receiveor become aware of any conflicting denands or claims witn respectto this escrow.or the rights of any party with respect to thisescrord or the right,s o_r_ any party hereto or any money or propertydeposited herein or affected hefeby, Escrow Agent sfrall [av6 thariglt to discont,inue its performance under these instiucii;;until the conflict is resolved to its satisfaction, and shallhave the furth_er, . right to commence or def end any act,ion oiploceeding, including interplead.er proceedings, for trr" p.r"po"-"of _resolving such conflict, and to be indernnified frorn the -costs
and expense thereof as provided in section 14.r, above.
14.3 Time for closing. Tf Escrow Agent is unabre toconply within t@nerEn for the close of escrow,Escrow Agent will return any/or ar-r d.ocuments, money or propertyto the parties in accordance with these instructioni upoi t-erniinat,ion of escrow as provided in section 11, above. rn theabsence of such termination, Escrow Agent wirr proceed toconsummate this escrow as soon as possible.
L4.4 A1l deposits of moniesinto escrow shall be rnaae Uy casfr or UV certifiee or cashierrscheck payable to the order of the Escrow Agent unless EscrowAgelt agrees to accept, funds in another form. Arl disburse*;i;shall be made by the Escrow Agent on its usual form of escrowcheck, and shall be hand deliver-ed to the party entitled thereto.
L4.5 counterparts. fhese instructions may beexecuted in one or more counterparts, each of which, ,rrli, ;;executed, shall be deemed an original, and each such counterpart,together shalr constitute one and the same instrument,.
L4.6 Copies to Agents. Escrow Agent is authorized tofurnish a copy of these instructions, or ant amendments thereto,crosing st,atement,s and/or any other 'd.ocumenis deposit,ed in thi;escrow to the lender or lenders of the partids and/or tneiirespective counsel, upon the request of any such persons,
L4.7 Endorsene@ The Escrow Agentis heleby aulrrorizea to enaorse tne aate of the close of escro$ron all promissory notes, trust deeds and other documents and.inst,ruments required to be d.elivered to the Buyer and/or sefiei
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7 /30/ 86
7
upon the close of escrow.
14.8 .Notices. The Escrow Agent is authorized t,o giveany notices permitted or required to be-given to the parties p"":suant to these instructions in accord.anCe with the piovisioni ofSection 15.9, of this Agreement,.
].5. ADDIITONAL AGREEMENT OF THE PARTTES
As part of their agreement, but with which the EscrowAgent need not be concerned, Buyer and selrer further agree asfollows:
15.1 ltutual covenants of Buyer and seller. sellerrepresents and warrants to Buyer, .and Buyer warrants ana repre-sents to selrer that the warranting earty has the fulr rilnt,power and authority to enter int,o this Agreernent.
15.2 Additional Representations of Seller. Sellerfurther warrants and represents to Buyer !nat:
15.2.I Seller is unaware of any cond.emnationproceedings pending or threatened. against the propelrty;
L5.2.2 Themarket,able fee simple t,itIe,paragraph 5 herein;
tit,le conveyed to Buyer wiII be aunencurnbered except as provided in
15.2.3 Buyer has been informed. that theP-roPerty is located in an underground utility district. seffErshall not be reguired -to pay for the installalion, or compensateBuyer for the inst,arlation of, underground utirities -on theProperty.
r i on s and'"'*u"'.'ji' ""t ""tl'.i"n"J'JJ" 1T?"?'.TTfrtff"ff:fiT;condit,ions precedent to the close of escrow as follows:
) There are no actions, suits, claims,legal proceedings or any other proceedings effecting th6 prJpLiLVor any port,ion thereof at raw or in equity or befor5 any court, orgovernmental agency, domestic or foreign;
b) The existing buildingsas historical structures by
on thelocal,Property
stat,e orare not designatedfederal law;
PRABHE3A. PUR
7 /30/ 86
or rhrearened n o""ELr"flltKrl3i.";"fflixt3ln?.f,:#iJ" T;.:l?public ent,ity other than that relating to the widening of niiueriStreet in the city of san Luis obispo which shall not effec€ the
I
Property purchased by Buyer;
d) There are no leases, subleases, occupan-cies or tenancies in effect pertaining to thi Property otner Lfranthose set forth on Exhibit ,A-2t to that certain purchaseagreement between Seller and the Evans heirs, a copy of wnicfr isattached hereto as Exhibit, rrDrr, provj-ded, that there are cert,ainmonth to month subleases of the Ark, the total nurnber of whichseller is unaware. Further, that said reases, including opt,ionsto renew do not, extend beyond October 31, 1999.
e) Seller shall complete tenant relocationof all tenants on the Property prlor to close of escrovr or withinthi_rty (39) days t,hereaiter. This representation and warrantyshall survive the close of escrow and shall not be merged in th-eGrant Deed;
f) That there are no liens or encumbrancesoilr or claims to, or covenants, conditions and restrictions,easements, rights of way, rights of first refusal, options t6purchase or other matters ef fecting the property'ex-iept thatcertain option to purchase existing between- selier and Evansheirs and an easement that, exclusivetlr benefits Buyerrs aAjaceniproperty at J-10 Higuera street, san Luis obispo, californial
or cond*ion .rerarils #tl"t??E"li"":,*::;';:t.?3X"ffi:,:#:which has not been specifically aisltosea in writing by setler i6Buyeri
and authority toProperty to Buyer;
Seller has the lega1an agreement for the
power, rightsale of this
h)
enter That
int,o
. i) That there are no fixtures on the prop-perty in which anyone other than the Seller will have any claiin,rights or security or other j.nterests at the close of escrowi
j) That there are no encroachments on tothe Property of improvements located on any adjoining propertyn95 !o. any improvements located on the eroperty I-ocated- oir t-o anyadjoining property; and
easemenrs effecri,rs tl" ,l3f;:rfl:tt are no prescriptive or other
15.3 Right of Entry.
15.3.I Seller agrees that Buyer and itsoffice_rs, agents and ernployees shall be entitled at iny tirne fromand after the effect,ive date of this Agreement to enter into andupon the Property for the purpose of rnaking such inspections,
PRATHE3A.PUR 9
7 /30/86
surveys, engineering, soils and georogicar test,s, incruding testborings and soundings, and other studies as Buyer shall determineto be necessary or desirable.
15.3.2 Buyer agrees to keep the property freeand clear of all liens resulting from or attributable to Buyertsact,ivities on the Property prior to the close of escrow, and sfraff
11d91n:.fy and hold seller free and harmress from any damage,liability, g,ost or expense, including attorneysr fees, -resulting
from or attributable to Buyerfs activities on the property
15.3.3 If Buyer fails to complete the purchaseof the Property as provided by this Agreement for any reason otherthan the fault or neglect of seller, Buyer sharl restore theProperty to substantially the same condition as existed prior toBuyerrs entry pursuant to this Section 15.3"
15.4 Cooperatign of Seller- Seller shall cooperatewith Buyer in the execution and filing of any applicatiois anddocuments required by such governmental agenliei- or regulatorybodies or any.other party having jurisdiction over the nroperty o'rBuyerrs proposed deveropment. thereof, provid.ed that Buyer pays-a1lcosts and expense in connection with such activities.
15.5 Demolition and Removal of Existing structures.
15.5.1 Within six (6) nonths frorn the cl_ose ofthis escrow or on or about July 15, L987, whichever last occurs,seller shall demolish and remove atrl existing structures from thaProperty at its sole cost and expense. Seller shall be entitledto any and all salvage value of materials obtained from thedemolished structures. Further, SeIIer will install at its soleexpense curbr gutter and sidewalks along the Higuera frontage ofthe Property from South Street to the southern boundary oi theProperty. Buyer_ sh1l.I .permit Seller to enter the propbrty forpurposes of said demolition, tenant relocation and installat,iln ofcYrP, gutter.and sidewalks and street widening, and sha1l cooperatewith Seller in order to facilitate these activities. orivewa| curbcuts shall be mad.e only in accordance with a proposed developnentscheme, th9 location of which is subject to relsonable approvll bySellerf s City Engineer.
15.5.2 Sel1er shall indernnify and hold Buyerharmless from any and all actions, causes of action, clairns,damages arising from and out of the demolition and removal of th;structures existing on the Property.
15.6 Conditions of Approval" Each of the conditions ofthe close of escrow set forth herein shall be deemed to be cove-nants and Buyer and Sel1er each promise to the other to performall of the conditions required to be satisfied by them ?rereunder"
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e/ 8/ e6
10
L5.7 Surrriva.I of Representations. The representationsof each of the parties and their executory cov6nants shallsurvive the close of escrow and shall not be rierged in the a;;aDeed delivered to and accepted by Buyer.
I5.8 Possession. Possession of the Property shall bedelivered, to nuyEi ilnrneaiaterv upon ln" close of eicrow, free ofall uses and occupancies, if dhy, other than those reierred toherein with the exception of Chose t,enancies referred to inparagraph J.5.2.4 (d) herein.
15.9 Remedies. shourd either party defaurt in theperformance of -any of its obligations hereund.er, or fair tocomprete the sare ?nd purchase provided for herein, the nond.e-faulting party shall be excused trorn all obligations and dutiesagainst the defaulting p.art-y -o.n any cause of aciion or any remedyat law or in equity (including trre right of Buyer to -speciri'c
performance) .
15.10 Finding Ef,fect; Assignment. Buyer shall beentitled to assign its rlgnmgate' its a"ti.=hereunder to any partnership, joint venture or other person orent'ity of which Buyer j-s a geneial part,ner or in which -auyer fra-a beneficial ownership interest of at least, fiftv one (5tu)percent. Except as otherwise, provided. herein, ne-ither iartvshall assign its rights or delegate its d.uties und.er -thi3
Agreement without the prior written consent, of the other, whichconsent shall not be unreasonably withheld. The provisions ofthis Agreement shalI be binding upon and inure to tjte benefit ofthe heirs successors and asJigns and representatives g|f -trr"
respective partj.es.
15. ll Notices= Any notices perrnitted or requiredhereunder shall be in writ,ing and shal1 Ue deemed to havd beengiven when_ personally delivLred or on the third rusiness iltafter the date on which mailed. by certified or registerea maii,return receipt request,ed, addressed. to the pJrty for wnoirintended at the address set forth on the signatu-re pige of thisAgreement or such other address, not,ice or which-iJ given asprovided herein.
15.12 Attorneysr Fees. should any action orproceeding be necessary to construe or enforce the Lerrns or con-ditions of this Agreement, or the validity thereof, then theparty prevailing in such action shall be entitled to recover aIIcourt costs and reasonabre attorneysr fees, to be fixed by thecourt and taxed as part, of the judgment therein.
l-5.13 Further Assurances. Buyer and selrer eachagree to cooperate with one another and to perform such acts andto execute such documents or instruments as may be necessary or
PRATHE3A.PUR 11
7 /30/86
proper to consummate the transaction contemplated by this Agree-ment and the foregoing instructions.
15.14 .fnteryretations. As used in this Agreernent, themasculine, feminine and neuter gender and the singufar or piuralnumbers shall each be deemed to include the othelr whenev6r thecontext indicates or requires. The captions to the varioussections and_ paragraptrs of this agr-eement are only forconvenience and reference purposes and aie not intended to defineor rinit the provisions to which they rerate. The parties ;;;;;that each party and counsel have revGwed this Agree-rnent and thatany rule of construction t,o the effect that arnbiguities are to beresorved agSinst the drafting party shalr n6t apply in th;interpretation of this agreemenC or iny amendments- br- exhibitsthereto.
15.L5 Effective Date. This Agreement shalr beeffective on the dma Lv selrerts ciiv-i&""irl
9_"la approval shalr- be given -no lat,er than August s; t9g6r oLthis Agreement shall Ue nutl and void and withoud further effect.
15.16 comprete Agreement. This document and itsexhibits constitute the entire agrreenrent of the parties ;a ;;tnot be altered or amended except by an agreernLnt in writin|signed by the parties after the dite hlreof. -
IN WITNESS WHEREOF' Buyer and Seller have executed thisPurchase Agreement and these Escrow Instructions on the dateset forth opposite their respective names.
Date
ATTEST:
city efl< Pamela Voges
Date
Date
PRATHE3A. PUR
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SELLER
CITY OF SAN LUIS OBISPO,a chartered municipal corporation
llayor Ron Duni-n
BUYER
PAUL PRATHER
JACKIE PRATHER
I2
Ttrtt portl0n of Ipt r 1n Bl0ck 149 0f J. Eerfordrg Addltlon to the cltyof san lerls oblcp?,- 11 the clty of san r,rre-oii"po, county of san Luleoblapo, state of callfo*fu, alcording to Eap i'.a for rccord Aprlr,f876 h Book A at pagc Ln ;t Hapo, dcacrlbed as folloss:
coumnclng at the. Nortbeasterly corner of sald r.ot l; and runnlng thencesoutherly along the Eastcrly tine of aald;;;'1I.3.gi r""t to-iic Northeaaterlycorner of thc property coaveyed to Angellna siraccl, by decd recordedJune 17' 1936 ln yk-l?zt pigi lz ot-ottrcr"r n""ord", recordg of saldcounty; thence |"rtt gr' 40" i"st "toog the Northcrly itue ot iho prop.rtyeo conveyed, 184.rg feet, lpre or rceal to tti-$ueterry rlne of satd Lotl; thcnce Northerry atoni r"li rc"aerly rlne, 2-5L lg feet, trx,re or reee,to the Northcrly rlnc of eald Iot; then"e Eaeterly arong aald Northerryllne, 171 feet,'*r. or lca8, to the polnt oi-Uegfnnfog.
Exceptlng thcrefrou that portlon deecrlbed 1n the deed to Martln v.s'lth' et ur., recorded d;ii-g, rgog r_n Book iisq, page 395 of offlcla'Records.
Aleo exccptlng therefroa that portlon deacrlbed ln tbe deed to classlcEqulprent and Suppry, rne., " Lllf"Tl,corporatlon, recorded Jury 12,L977 La -Book Lgg4-, i"g. fii of Orff"r"t Records.
/5eQ
I
F.Yf"llBlT 'A,,
)
Thet portl0n of L,ot lln Brocr l4g of J. Eerfordra Md1t10n.to thc cltyof Saq L.la obrrpo. io^.nJ^ii.y of san r"r"-oirr1o, couuty of san Lule?}il" ii:l'^"j. Hj"ill"r,U;::';:"::,ff1 jj,;j,f;" rccord Ap*,,
commenclng at the, Nortbcaetcrry corncr of gald Lt l; and ruunlng thencesoutherly alons_:l:_3"..iiy^r^r". of earJ;;, zll.gir.o._iJ-ihe Nortbersterrycorner of thcJune rz, -rgii ProPcrty conve;red to Angeiio.*iir"..l, b, dced recordedcouDty;'.;;;;. tl"Iiuri3t;ol'ff sz or"oii*t"'i'r..orda, records or ealdao couveyed, ia,..rc ro.., -t.I;i !:i: i:..il:,{;iil;rilJ;"irlli"#:.,l; thencc Nortberlv "rooi Jii o".:.rl; il;l-rrr.ra r..., ,oil or ree8,
"
l" i l', Ii T:: i l'-1.':'":'-ff i : .* 1.;fff'$ .*i;;*l l,',0 No r t h e r I y
Erceptlng thcrcfron lhat po.troo 9::grlbed h thc decd to Hartln V.snlth' et ur., recordea ai.iiJ, arur;-;";r igo, pagc 395 of offlcr.arRecordo.
,'d;'n {:$, ;;r*,ir il {i;f }## t"t".I::# jt;"il,
3];";i:"#il$":t:::i:::o.nat portion described in the deed to the city or
of officiar nicoras, descrTEEd'-aT-EIEiIi.l98-' in Book ' page
-,Ee8inning at the interaection of the veaterry rlne of Hlguera St. andthe southerry line of south st. ae ehor,,, on the nap flled ln Book 6 atpage 'l 08 of Records of Surveye; thence south 5o 15, oon lfest alongthe vesterly line of Hi8uera st. a distance of 216.46 feet to a point;thence North 960 48' oo" r{est a distance of 25.o0 feet to a point;thence North 5o 15, OOu East parallel to the rreaterly llne ofHiguera St. a dietance of 2O6.76 feel to a polnt; thence on a curve tothe reft with a radius of 20.00 through an angle of 840 26, 50, tothe southerly Line of South St.; thence South glo ll, )0, East alongsaid aoutherry line a dietance of 45.2? feet to the porNT oFBEGINNINC.
Dffi}B,}T ''B
I
i
I
i
I
ll
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5-+7
C}HHTHTiH
POLICY OF TITLE INSURANCE
ISSUED FROM THE OFFICE OF
SAFECO TITLE INSURANCE COMPANY
lO43 Marsh Slroel
San Luls Oblspo, Calllomla 93401
SAFECO TITLE INSURANCE COMPANY
SUBJECT TO SCHEDULE B AND THE CONDITIONS AND STIPULATIONS HEREOF,
SAFECO TITLE INSURANCE COMPANY, a California corporation, herein called the Company,
insures the insured, as of Date of Policy shown in Schedule A, against loss or damage, not
exceeding the amount of insurance stated in Schedule A, and costs, attorneys' lees and
expenses which the CompanY may become obligated to pay hereunder, suslained or incurred by
said insured by reason of:
. 1. Title lo the estate or interest described in Schedule A being vested other than as
stated lherein;
2. Any defect in or lien or encumbrance on such title;
3. Unmarketability of such tiile;or
4. Any lack of the ordinary right of an abutting owner for access to at least one physically
open street or highway if the land, in fact, abuts upon one or more such streets or
hignways;
and in addition, as to an insured lender only:
5. lnvalidity of the lien ol the insured mortgage upon said estate or interest except to the
extent that such invalidity, or claim thereof, arises out of the transaction evidenced by
the insured mortgage and is based upon
a. usury, or
b. any consumer credit protection or truth in lending law:
6. Priorily ol any lien or encumbrance over the lien of the insured mortgage, said
mortgage being shown in Schedule B in the order ol its priority; or
7. lnvalidity of any assignment of the insured mortgage, provided such assignment is
shown in Schedule B.
Secretary Preskjent
CLTA STANDARD COVERAGE POLICY. I973
a
EXFIIBIT
SAFECO Stock No CAP-Ozt8 (Rev I r.841
vef,r$,?{eT il
i)
5.
tr
PART I ot SCHEDULE I
o
d
a
U
a
(
I
t
i
l. Taxes or a
levies ,""ura"aarents which ars or assessments o.r"
nur shown as existing liens by the recor,t realprooerty or uy ine public records. ds of any taxing authority that
Proceeding^s
.by -a,
publi"
"g"1ly which may resutt in taxos or assesproceedinss' whether or no,"r-no*n bv the i".'ororrr such asency ";;;;";#i; lj.lljJes of such2. Any facts, rights, interests or clairns which are notascertained bv an inspectio,ioi,r," i",.'j'o;;,'i"illjn-llr:ff:,'i:,3;:f
;.,:"ords bur which courd be
fiJ;":::::,"4
"":'"?';:ililil;",li,1li:,gi":T:x?fii".,:T'i:i:;:fl;,;iffi:x:[T:g:;::"", orher racts which5. (a) Unpatenrissuance,n"ililliiT#'fn'i,[:if,X"#;"Jf,ffi:e.ptions in parenrs or in Acts authorizins the6. Any right, tiile, interest, estate or r
ilffi :"ffi.,,;;;:,"ff i?*;t#il:,jff ;ft tld!1,t.'1;";;fi,!6l,l*1",;i;;*;i;ffiowner for access
'o "
privri"";;;;"" street r;;;;;;; is insured bv this porrcv.7. Any law, ordi
:*::::;:i;*1ffif""9:;il,T,il,"::ff"j,il',?f,J'i,"j,,{{.}.:+iiii,flf:;:#j,fl1?;:.,j"T,:?
Fii:iff iffi ffi i^l,!';i..f.ln:
or roca tion ; ;; ; imp rovem e ; iil ;; h e re arre r e rected o n th eth e e rre ct o t an v
"
i6 r
"
tl" I I r?il:?ffi :"jffn :"j,r:rio',
i n in J Jil ; ;";
B
fl e?i.;',il;r :l ffiff fl ffJ,"#
; ;;. ffi ffi ;:'"',"::H ;
"" :"-
" " :;9' Defects' liens'
?11^cumbrances' adverse c.raims, or other matters (a) created,.suffered, assumed oriii::j# ill^-"#,i::ij:lx'ffi:j:):,::l;v'i;,1#li,ri" ,""o,jJ'""0 *ii,n"rwise exc,udediromfi:il:"lil;;fii{irut;,:'*;fl Hffi3l,#.11'il',,?"T"il}',Ii[iriil$:?11;:l3":ilt:i'J;JJ::i"T:il+ilie"JilTff,'"':if,::li: nv prior to tne J,i"
",,"r, insured craimanr
s u s r a n e r i,;;;: : :Ji :ffi :T i:: [.# i : i? ;i:1
"
#k "'- i i ]'.fi il;ff ,i,fi?J
:j ffift:: ;ncumbrancer for vatue *i,nori tnoila,;
:> J
rai:t :.'
, .: :^!r: ':1:!1r,,- . ^..r ' .. . -.
Th P o tc Y no c mo wetep t h o ut Sc edh u e s A a Bnd
oc nd no s n d s ti u lap o sn of rh s Pol a re htocY o wcba nk on npae deIndcontinUEonbackoepaghcpolY
'-J:.':lr
Arcunt of rnaura
('-'
oat. or-r"r'ilil"";:;.,f:,f:.ig* at 8:00 a.n.
l. Naoc of Inaured:
PoL(..,
chal )
No.140357
$200.00
2
:Tffi:':^lTrfTrrTil:'.tt' oF cER-Ar.D B. EvANs, optlouor; and rEEstate of car1for"1", -;;irlofl"tt"red uuniclpal corp;r.;i;;'oi .r,.
3i.::o'"0'i lfri"J:ii:; i:, the raud descrlbed hereln and 'hlch 1s
Optlon interest
The eatate or tnlsregt referred to hereln le aveated ln: su lr€f,cln 18 at Date of pollcy
Lorralne Evaue, algo horm ae AlEa Iorralne Evlnterest, by Decr". .r-r,.,1-:;.:^^: rprrar'ne Evauar a8 to a L/2207t ;;';;: friF.ii:l:t'it:jfi":Tffo;;;" 'u, re78 tu Book
iiil'it'nil*. l', I et; -il;;
: ::;;.'" i";;J fri:I. ;f, l:ilitl*",
1"1"r"i1 ;;;rtt"t to the helre o; dev1se"3-oi'c".ard B. Evaus-eatate oi ""ii_.a"r:j!:;:.rf||f eubJect
_i"_in.,."dnlulstratrou
ii *,o
""''3'io TjJjt i " .u io J. iJr ; : *"T" ol"'
" l;" THil J; ;*.f
ff :i . ".
the land referrr
"r c*iiioff ,
^#"o.1, T,.lff ffi:%i:o:1x.;"0"::rs; jj"fir,
",",See descrlpt1-ou attached.
3
4
pJc
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Ttrat portl0n of lot l 1n Broc k L4g of J. garford'e Addrtl0n ro the cltyof san Lula ob*po, rrln.-iiiy or srn l,urs-oir"po, county of san Lulsoblepo, state of callfo."1";;;"ord1ng .o *rf-iri"a ro, .o"ord Aprlr,f876 1n Book A at page Ln ;t *0", deacrlbed ae follorre:
c'onmnclng at the. Northeaeterry corner of eald r.ot l; and ruonlng thencesoutherly erons_:le r"".".iy-ii": of ,"19 r"., z:t.92 feet to the Northeasterrvcorner of thc ProPerty ."""!ya to Angerlo-iirr""l, by deed recordedJune 17, 1936 1.n *:n^l?7r pii" gz "rlrii"rii^n."orar, recorde of ealdcouoty; thence T"Irtr -al' io' fiJ". "roog the Northerry rlne of tlao couveyed, ts4.18 feet,'L.J"o. rceel i;_.il; r.leeterry rlne of
.:"1;rff1.,1; thence Northerly
"roog r"il wo"..-rr; i-;l-zsr.18 feet, ,oors or reae,to the Northerry rine of "e"iJ-,..;
thence r""...ry "r."g
-i"il'
iorttrertyllne, l7l fect, lrore or leee, to the polnt oi-U.gf"n1ng.
Erceptlng therefroa that portl0n deecrlbed ln the deed to uartln v.iljl;rlr *" recorded ai,.ii-s, re63 h B";k litq, page 3e5 0f offlclal
Arso erccptlng therefrou tbat portl0n deacrlbed ln the deed to crasglci$l'fi";.li',iill'i;,"'T;;1, 1ilf :ilf;:r::ia tron, recorded Ju ry,2,
/
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//53
-'-\ \,J
Pollcy No.Schedulc B
Page I
140357
SCEEDULE B
Thle pollcy doeattonrcys, f".""^lot lnaure agalnat loes or damf"rr;;i;;, ^=-o or erPena.", .oy or all "r "h1fr8i;rll'oit::ffj""li.l;.
Part I
All nattera aet
;,:T,
-:: ;:;"';;'lni: ;:ii:;'*tl ff"'":;:iH'ri.i",':; ;:;:;:i"",,1.
l:^ Property taxca, 1ncaascasEnte collectcd wl
ludlng anI peraooal.property tarca and anyth taree, for the fl;cai ,;:r-iirr_rgru.
$2,603.55 p"ta
NONE
$2,603 .55
NOIIE
NONE
003-000
049207-2_o
lst Iuetall-ent:
Penalty:
^2od Iort"llrent:renalty:
Coat:
Code Area:
Assese&ut No. :Parcel:04-80r-u
2- the llen of eupplenental
Iprovlslong of ghapter 3.5 ("o-t"rea, 1f aay' asseseed- purauant to theand raratlon code or .t."siJ;"Tl"fir**rjl"t1on 7s). ;;-;1..".,uo,,"
l: .. Supplereutal taree for theto the provle1o
i: :" ffi . ;t'-'ffi i ti" Fii'tt T:,{Fji #i' t ;jf ;, ff " iii ""o, otii *' *
z"a rosiiiffi;; li:lil:ir""'.Due by:
Derrnluent ae of APrll 1o' 1986
Parcel ;;;b;;,"tt Aprlt tr, 1986
c"a" "rlJ;*..
0o4,gol,017
a"".""r"ii no.. 003-000
975,0o7 ,906
4. An easenethereto as aeturanted to:
"l.jln Il""T::ffnlno* berow and rlshte lncldentar
,tft:":;:"::lii,#;,yff1: I; ::':1" presen, ownershlp orrngresa and egressAprll 8, 1963 lnsoutheaet".ty
"o.look
1234 at page 394 ot offlclal Recorde
Purpose:
Recorded:
Affects:
j
:.'
1
o-f Optlon AgrccDcnt;
Novenbcr 19, l9g5Lorralne Evana and the Eatate of Gerald B. Evane,Optlonor, and thc Clty of San iute Oblapo, a charterednunlclpal corporatton of the state of Californla,opttonee
Decenbcr 23, l9g5 under Recorderre Serlea No. l4ll4
(
Order No. f40357Schedulc B
Page 2
5. An Xeuorandun
Dated:
By aad Betneeu:
Recorded:
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l. urnnmonotT.fma-
The lollowing termcwhon us€d h lhls polic-y mean:
(a) "insured": the insured named in Schedule
A, and. eubJecl to arry rights or delensos the Com-
pany may.have had agalnst ttte named lnsurod,
those ufio succo€d b tho lnterest ol sucfi lNurod
by operation ol law ar dhdngubhed frcm purchar
lncluding, but nol limhed to, hoiB, distributoos,
devlsees, g{lrvh/om, porsonel roptosontativos,
next of kin, or oorporslo or fidrciary su@essoct'
Tho lerm "irsured" also indudes (i) the owner ol
tho indoblednoss socured by tho insured rnort'
gage and each srJccossor in ownership ol sucfi
indebtedness (reserving, howevor, all rlghts 8nd
defenses as to any $rcfi succossor who acquires
th€ ind€btodnoss by operation of law as described
in the lirsl senterice ol this zubparagraph (a) that
the Company uould havo had against the suc-
cesso/s transferor). ard furthor irdu<tes (ii) any
govemmental ag€ncy or instrutnontality whk$ ls
an insurer or guarantof under an insuranoe
contract or guaranty insuring or guaranteoing sai,
indebtedn€ss. or any part theroof, rvhether named
as an insured herein or not. 8rd (iii) the padies
designated in paragraph 2(a) ol tpse Conditbns
and Stipulatirns.
(b) "insured daimant": an insured daiming
lrss or damage llordlnd€r.
(c) "insured lender": the orvner ol an insured
morlgags.
(d) "insured rnortgage": a mortgag€ shown in
Schedule B. the orvner of wtli{$ is narned as an
insured in Schedule A.
(e) "krrcwledge": actual knowledge' not con-
slructive krrcwledge or notics whicfi may be im-
puted to an insured by rearcn of any public
records.
(0 "land": the hnd described. spe<itlcally orby
relerence in Scfredtrle A and imptwements al-
lixed ttrereto whicft by lawconstitute real propedy;
proviled, hor'vever, th€ term "land" do€s not in-
clude any area exdud€d by Paragraph No. 6 of
Part lof Scheduko B ol this Polica.
(g) "rnortgage": mortgage, deed ol trust' trust
cleed, or other seqrrity instrument.
(h) "publi<; r€@{ds": those records v/hich by
law impart constnrclive notice ol matters relating to
lhe land.
2. (a) Contlnuatlon of lnsurance after Ac-
qtilsltlon ol Tltle by lnsured Lender
ll this policy insures the owner of the indebt'
edness secured by lhe insured mortgag€, this
policy shall @ntinue in force as ol Oate of Policy in
favor of such insured who acquires all or any part
of the estate or interest in the land described in
Schedule A by foreclnsure. trustee's sale' con-
veyance in lieu ol foreclosure, or other legal
manner which discharges the lien ol the insured
mortgage, and if such insured is a @rporation' ils
transleree ol the estate or interest so acquired.
provided lhe transleree is lhe parenl or wholly
owned subsidiary of such insured: and in lavor ol
any govemmental agency or instrumentality which
acquires all or any part of the estate or inlerest
SAFECO Stock No CAP-O2I8 (Rev I t-841
puruuam ro a onrraA o tnsursnco'or'guarani
insudng or guatantooing tre lndebledno$ 84
cured S the lneurod mortgag€. Aller any sucfi
acquisitinn the anrount ol lnsuranc€ hereunder,
oxclusivo ol costs, attontoys' leeg an<l oxporrseg
whicfi tre Company may be obligated to pay' shall
not excsed tre leasl ol:
(l) ttre arnount ol lnsuranco stated h Scftodule
A;
(ii) the amount ol the. unpakJ pdrrcipal ol the
indebtedness plus inlorest thoroon. as determined
under paragraph 6(a) (iii) hereof, expenses ol
loreclosure and arnor.rnts advanced lo proloc{ th€
lien of the insured fllortgage and seorred by said
insured mortgage at the time of acquisilion ol such
estate or interest in tho land; or
(iii) dre amount pai, by any govemtnonlal
agency or instrurn€ntslity' if strch agency or
instrurnentality is th€ insurcd claimant in ac-
quisitinn of sucfi estatg or inter€sl ln sadslactirn ol
Its insurance contraci or guaranty'
(b) Contlnudlon ol lnrurancc rftor Con-
veysnq'olTltlo
The coverage ol this policy shall continu€ in
force as ol Dato ol PolicA, in tavor ol an insured so
long as sucir insur€d retains an estate or interest in
the land. or owns an indebtedness seo'rred by a
purcfrase money rnorlgage given by a purcfiaser
from sudr insured, or so long as sudl insured shall
havo liability by reason of cownants olwananty
made by such insurgd h arry bansler or oonve-
yatt(E ol sucfi ostate or interost; ptovided. how-
ever, fris policy shall not continue in forcs in lavor
of any ptrrcfraser lrorn sucfr insured of either said
estate or int€rest or the indebtedness seorred by a
purchasrg money rnorlgage given to such insured'
3. tlelbnco lnd Prc$cutlon ol Actlonr l{othe
ol Clth lo be Ghsn by en lncurcd Ghlmrnt
(a) The Company at ils own cost and without
undue d€lay, shall provirJe lor the delenso of an
insured in litigatbn to th€ extent that sucfi lil(Tation
involves an alleged defecr, lien. encumbrance or
other matter insured against by lhis policy'
(b) Ihe insured shall rntify the Company
promptly in writing (i) in case of any litigatkm as s€t
iorth in (a) above' (ii) in cas€ knowledge shall
come to an insured hereunder of any claim of title
or interest which is adverse to the titl€ to the estate
or interest or the lien of the insured mortgage, as
insured. and which might cause loss or damage lor
which the Company may be liable by virtue of lhis
policy. or (iii) if title to the estate or interesl or the
lien ol the insured mortgage, as insured, is re-
iected as unmarketable. ll such prompt notice shall
not be given to the Company, then as to such
insured all liability ol the Company shall c€ase and
terminate in regard to the matter or maners lor
which prompl notice is required; provided, how'
ever, lhal lailure to notity shall in no case preiudice
the rights o( any such insured unde' this policy
unless the Company shall be preiudiced by such
lailure and then only to the extent of such pre'
ludice
(c) The Company shall have the right at rts own
(Conditrons and Stlpulatlons Contrnued and Concluded on Back Page of lhls Polrcy)
cor rri-tn3tttirieifr irinoin iirirue oeriy ridriocure
any acliofl or prccoodittg or b do any ofier ac{
whk*r in its opinlon may be necessary or desirable
to establlsh the tltb to ths estate or lnterest or th€
lien ol tho lmurod rno.tgago, ss ln$ired; and the
Company may tako any apgoprlale qc{ion,
whether or not lt sh8ff bo llable under the torms ol
trig pollcy, artd $8[ rtot h€roby oncede llablllty
or waive any prw,lslon ol hlo pollcy.
(d) Whenevor tho Company ehall have bro{Eht
any acibn or lnteqoced a delense 8s roquired ot
permitted by he gwlslom ol this polkry, the
Company may pur$o any ucft litigation to linal
determination by a ooutt ol compotont lurMiction
and expressly r€€€lws tho rlgttt. in its sole
discretion, to app€al lrom any adverso iudgment or
ord€f.
(e) ln all cas€s tvh€re ftis poltcy permits or
roquiros tre Corpany o prc€€qlto or provicb lor
the delsnse ol any adion or goceedlng' the
insured hereundor drafi cooJrc to the Cornpany
th€ righltoso plosoqrborprwHedelense in sucfi
acrbn or Foco€ding' sttd all appoals therein. and
permil tre Companytouso' atitrsoption' the name
ol sucfi insured lor cdl ptllposo. Wtxlnevor re-
quested Oy fre Cornpany. sucfi hsurcd shall give
the Cornpany, at Olo Company's oxponso. all
reasonabl€ airt (1) h any $Jcfi aclbn or pro-
ceeding in effec{ing sedemenl secirring evi'
denca, obtaining wihesses' or proseanting or
defending sr.rc*r actinn or p.oco€ding' and (2) in
any other ac{ whkf h t\o qtnttn ol On Company
may be necessary or d€sirable b €€lablish th€ title
to th€ estato or hercsil or th€ lion ol the insurecl
mortgage. as insured, idudins hrt not limited to
executing conec{ive or othor docuanents.
4. Prool of Lott or llamagc; Umltltlon ol
Action
ln additron io ote ncnicrrsttsquiidlud&t P"ta'
graph 3(b) of th€so Conditiorrs and Stiptrlations. a
proof of loss or damago. tiign€d and swom to by
the insured c,laimant shall be furnished to the
Company within 90 days afterthe insu.ed claimanl
shall ascortain or determine the tac{s giving riso to
such bss or datnag€. Sr.rcft goof of loss or
damage shall describe the d€leci in. or li€n or
enqJmb(ance on th€ titl6. or other matter insured
against by this policA whit$ conslilutes the basis of
loss or damage, and, when appropriate. state the
basis ol calculating the amount ol such loss or
damage.
Should such prool ol loss or damage lail to state
lacts sufficient to enable lhe frmpany to deter'
mine its liability hereunder. insured claimant' at the
written request of Gompany' shall lurnish such
additional inlormation as may reasonably be
necessary to make such delorminalion'
No r€ht ol action shall accrue 1s 165ured
clarmanl until 30 days after such proof of loss or
damage shall have been lurnished'
Farlure to lurnlsh such prool of loss or damage
shall termrnate any liability of the Company under
lhrs pohcy as to such loss or damage
/5'3{
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("J,coilomoils AND
5. Optlon. to Pay or Othcrwll. S.tilc Cl.lm.
rnd Opllonr lo Purchm |rdrbt.dn ..
Thc Cornpany slrall have tho @tbn to pay of
othorwieg sonb toa or in tfie narne ol an insured
dairnant any claim insured agoinst or to lominato
all llabilig and obl[atkrns ol Oro Cornpany trore-
uder by paying or tendering paym€nt ol th€
arnounl ol insuranco urdor thb polby togelhor
with any @sts, anoflroys' lees and expenses in-
cuned up to lhe lirne ol grcfi payrnont or tender ol
payrnont by th€ insured daimanl and authorized
by lhe Company. ln case bss or damage is
clairned under thas poltcy ry the owner ol the
irdeblodn€ss seq.red by ttr€ insured mortgag€,
tho Cornpany shall have tfie furfier optirn to
purchase such indeblerpss for th€ afilount owirE
lhoreon logolher tvith all costs, atto.neys' lees and
expenses whicfi lho Corpany is oblQated hero
under lo pay. ll lhe Corpany oflors to purcfiase
sau irdebtsdness as herein oroVtdEd, the otmer
ol sircfi indobt€dn€ss sfiatr lransfer 8rd assign
sa'd indebtedness and the mortggg8 and any
coflaleral s€ciJriq El€ sarno b the Comparry upon
pelmont therelor as horoin goUAeO. Upon sctr
ollcr beirg made by Up Cornpany. all liability and
obligatktns ol the C.ompany h€r€und€r to th€
orvlrer of he indebfedr6ss s€cu€d by sakt in'
surod mortgag€. otrFi. fla r fle obligatirn to
purcfiaso sakJ indebtodoess pursuant to this
paragraph. are terfl*Bt€d.
6. Determlnatlon cnd Prpncntol Loes
(a) The liability ol the Company under this
policy shall in no cas€ exceod lheloast ol:
(i) the actual loss ol the insured claimant: or
(ii) the arnount of insurance statod in Sche-
dule A, or. il applicable. the arnount ol insur-
ance as datined in paragragh 2(a) hereol; or
(iii) il this policy insures the owner ol the
indebtedness secured by the ansured morl-
gage. and provided said owner is the insured
claimant, the amounl ol lhe unpaid principal ol
said indebtedness. plus interesl thereon,
provided such amounl shall not include any
additional principal indebtedness created
subsequent to Oatg ol Policy. gxcopl as to
amounts advanced lo prolect the lien ot tho
insured mortgage and secarred lhereby.
(b) The Cornpany will pay, in addition lo any
loss insured against by this policy. all costs
imposed upon an insured in liligation carried
on by the Company lor such insured. and all
cosls. attorneys' lees and expenses in liti.
gation carried on by such insured with lhe
wrilt€n authorization ot the Company.
(c) When lhe amounl ol loss or damag€ has
been delinilely fixed in accordance wilh lhe
conditions ol lhis policy. the loss or damage
shall be payablo within 30 days therealier.
7. Limltallon of Llablllty
No claim shall arise or be maintainable undst
lhis policy (a) il lhe Company. atter having re-
ceived.nolice ol an alloged dotecl, li€n or en-
cumbranco insured against heroundet. by litiTa-
lion or olherwis€. re.noves such doroct. lion o(
encumbr.nce or Ostablishes lhe l:.hror.llrlien ol
tho insured mortgage, as irsurod, wilhin a rea'
.. ,LAnOilS (Contlnucd rnd Concludcd Fronr .. 'dc ol thlr pegrl
soflabl€ llnp atter rocelpt ot sllch notico; (b) in the
ovonl ol litigalion until th€re has bo€n a linsl
dolormination by a courl ol compotenl iurisdiclion,
and disposition of all appoals thorolrom, adverse
lo the |tll€ or to the lion of tho ilsured morlgage' as
insurod. as povirlod in paragraph 3 hereol; or (c)
tor llability voluntadty admltted or assumod by 8n
insured withoul writtsn cons€nt o{ ttre Company.
8. Rcductlon ol lnauran<i; Tcrmlnatlon ol
Llabihy
Allpaymonls under lhis polica, excepl paytnents
made for costs, anomeys' t€es and expons€s'
shall reduce lho amount ol trl€ insuran@ pro tanlo:
provided, how€ver, il the orvner ol the indebted-
ness socurod by tho insured mortgage is an in-
sured herewder, fien *rh paymefits' prior to tho
acquisilion ol title to said €state or interest as
proviled lr paragraph 2(a) of these Corditbns
and Slipulalbns, stlatl not reduce pro tanto the
a.nount ol the insurance afto.d€d heround€r as to
any sucfi krsur€d, excapt to lh€ €r.tonl hal sucfi
payments roduco tho arnount ol trl€ irdobteclnoss
seqrrsd bY srcft rnortgage.
Paymerl h full by arry p€rso.t or r/oluntsry
satisfrction or rebaso ol the ilsrnod mortgago
shall lerminate all liability ol fio Cofipany to 8rt
insured owrer of th€ irdobtedn€ss seorred by the
insured rnottgage, excepl illi provided in para'
graph 2(a) hereof.
9. LhbllliyNoncumulallvc
It b expressly trrdersilood fut fle emounr ol
insuranca und€r this poltcy. as to the insured
owner of the estate or int€tost covered by thb
policy, sttal be reduced by Itly amourn the
Company may pay undor any poltcy lnsurirB (a) a
nrortgags $otrvn or tgterrod to h Scfiedde B
hereol uhitt b a lien on the'osfate or itilerssil
covered by fris polkry, or (b) a rno.tgBg€ horoafter
execrrtd ry an insured wtricft is a cfiarge or lktn on
the estato or inter€st descrb€d or reterred lo in
Scfredule A. and trl€ atnount so paid shall be
deemed a paymenl under 0rb poliq. Tho Cont'
pany shall have lhe option to apply lo tho payment
ol any sudt morlgag€ any atrxxrrt that otherwise
would be payable horeundet to the insurcd owner
of th€ estale or interesl covered by this polby and
tho atnout{ so paid shall be deemod a paytnenl
undsr lhis polica to sab insured own€r.
The provbkrns ol this paragraph 9 shall not
apply to an owner ot the indebtedness secrrred by
lhe insured tnorlgage. unless suc*t insured ac'
quires litle lo said estale or interest in satislaaion
of saad indebledness or any part thereof.
10. Subrcgatlon Upon Payment or SottlG,nent
Whenevsr the Cornpany shall have paid or
sonled a daim under lhis policy, all right ot
subrogalbn shall vesl in lhe Company unatlecled
by any acl of lhe insurod ctaimant, excepl that lhe
owner ol the indebtedness secured by lhe insured
rrlorlgage may releas€ ot substilule lhe petsonal
liability ol any deblor or guaranlor. or oxlend o.
olhe.wiso trrdify lh€ lerms o, paytn€nl. ot release
a porlion olthosslale orintorest |tom lhe lienol the
insured rno.tgage. or release any collateral s€-
curity tor tho ind€blodnoss, prwided sucfi act
occurs prior to recoirl by utcft irsured ol notice ol
any claim ol title or inleresl advorso to the liil€ to
tho oslale or interesl orth€ priority or tho lien ol ths
insured mortgage and doeo rnl rezull in any loss ol
prkxity of lhe lien ol the hsured rnortgag€. Th€
Company shall be afuognted lo erd bo ontiuod to
all rights and retnodie which such insured
claimanl would haw had against any porsro{r or
proporty in rospoct to sudi clsirn h€d this poic-y not
boon issu€d. and the Company b hereby aulh-
orized and empo'rored to su€, compromis€ or
s€tll€ in its name or in the narne ol lh€ insurod to
the lull extonl ol the loss susiain€d by lhe
(bmpany. ll reqwsled by the Company, lhe
insured shall ex€qrto ulY ui all documents to
evidgnco th€ within sub.ogatiofl. ll the payment
does not covor th€ loss of sucfi ingured daimanl
the Conpany shall bo subrogated to st ch rbhts
and remedies in fp ptoportln whbh sakl pay-
meflt boars lo ths arnoufi €t sab loss. bx sucfi
subrogatbn shall bo h subo{dinatbn to an insured
rnortgage. tf loss shoub rssuh lrom any act ol sucfi
insured daimant sucfi ad shallnol rcil this policy,
ful Sn Company. h thal event. shall as to sucfi
insured daimant bo t€qunod lo pay only that part
of any. losses iEutod a€Bils{ hereunder
whirJr shall exceed tho atnount. il any. bst lo lhe
Cornpany by reason ol the impaittnont ol th€ righl
of sufiogaticn.
1 t. Uablltty Llmld to thlt PollcY
This instrument bgs0t€r with all endorsements
ard other inslru,nonls, if any. attacfio<l her€to by
tho e.ornpany is tfie entite poltcy and @nlracl
between tre insured and the Cornpany.
Any daim ol loss or damage, whsther or not
based on neg{iFnco: atd lrnii arisss o{rl ol tho
stat s ol flo f€n ol ttlo irgted morEngo or ol th€
litl€ to tho oslaleo. iilercsilcovsrod horeby' orany
action assertiq srcfi dakn' sha[ bo rostticted to
the provisirns and @nditbns and s{ipulatims ot
this poftcy.
tlo amendment d or ondors€ment lo this policy
can b mad€ oxceplbywtitit€ enfusd h€reonor
attacfied irereto {ped by eift€r lhe PresirJent. a
Vrce Presilent fre Secretary. an Assislant Sec-
relary. or valktatirg olfrcer or authori:ed sbnatory
ol the Company.
No payment shaI be made wittlo{rt producing
this polic-y lor endorsemenl of $rch paymenl
unless the policy be lost or destroyed in tt hich case
proof ol such loss o. d€struclaon shall be lurnished
to the satistactbn ol the ComPanY'
12. Noticet, Whcr! Sont
All notices required to be grven lhe Company
and any statsrngnt in wriling requir€d lo be
lurnished the Cocpany shall be addresssd to it at
the oftice which issuod this policy or lo:
SAF€CO Title lngurancc ComPanY
Nalional Claims Deprrtmcnl
P.O. 8ox 2233
Lor Angelcs. C.lllornir 9Oo5l
t3. THE PREMIUII SPECIFI€O IN SCH€OUL€ A
IS TXETNTIFE CHARGE FOR TITLE SEARCH.
TITLE EXAMINATION AND TITLE INSURANCE.
SAFECO Stock No. CAP-O218 (Rev. I l-84)/5"7-
rl t
Tenant
Ken's Body ShoP
SLO Cycles & Miller
Ttre Ark
Ark GaJ.).ery
T. V" Sales
KirstY Roberts
Paul Trout
John Trout
Richrard Boqer
Rerrt
s 7OO.OO
650. oo
Bso. oo
60.oo
100. oo
100. oo
105. OO
115.OO
s2 , 77O. OO
90
t"tus
3 year lea-se 7l/l/83 w/3 Yl^' option
3 year lease ll/l/83 w/3 Yt' oPtion
rnonth to month
nonth to month
nronth to month
nronth to rPnth
month to rPnth
month to month
nronth to rronth
EXHIB!T
\a Dt'
fl /537