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HomeMy WebLinkAboutD-1697 APN 002-412-012 - 614 Monterey Street (Parking fund acquisition) Recorded 09/21/2006-CUESTA TITLE C040 r Recording requested by: Hamner, Jewell and Associates Government Real Estate Services P.O. Box 3086 Pismo Beach, CA 93448 When recorded, mail to: City _of San Luis Obispo _ Public Works Department "955 Morro Street San Luis Obispo, CA 93401 APN: 002 - 412 -012 JULIE RODEWI San Luis Obispo Co Ierk/Recorder i Recorded at the request of I Cuesta Title Company - uC.: 2 60606700 111111111111111111111111,11111111111 No fee per Government Code 6 GRANT DEED No Documentary Transfer Tax per Revenue Taxation Code 11922 SN 912112006 8:00 AM Titles: 1 Pages: 3 Fees 0.00 Taxes 0.00 Others 0.00 PAID $0.00 For a valuable consideration, receipt of which is hereby acknowledged, . Yvonne Lorraine Greenaway, a widow FILED - EE p416 U T-0—F-1- STATE do(es) hereby grant(s) to the City of San Luis Obispo, a Chartered Municipal Corporation of the State of California the real property in the City of San Luis Obispo, County of San Luis Obispo, State of California, that is described in Exhibit A, attached hereto and incorporated herein.. Dated: Yvonne rrame Gre naway State of California County of SJ�(f Lt/is d ®PS/A0 On TVX4 /! , A90C before me, T04U personally appeared 4.0,p194 �—AA5C/4 44/ personally known to me "(or- proved to me on the basis of satisfactory evidence) to be the personK whose nameV4 is /afe subscribed to the within instrument and acknowledged to me that he /xhe41*y executed the same in his /1afrltbt r authorized capacity(, and that by his /1%wAk6ir signatures(A� on the instrument the person($), or upon behalf of which the person(g) acted, executed the instrument. �������� u� ` ®6 M R FR ''',i WITNESS my han d official seal Signature (Seal) 0 z J2 % O 8 AL1F�G�24Ja i4 ONO` ��� EXHIBIT A LEGAL DESCRIPTION The Northeasterly fifty-nine feet of Lot 2 in Block 9 of the City of San Luis Obispo, in the City of San Luis Obispo, County of San Luis Obispo, State of California, according to Map recorded May 1, 1878, in Book A, Page 168 of Maps. EXCEPTING THEREFROM any portion of said land lying within property granted to William B. Haley in deed which recorded March 30, 1871 in Book C, Page 281 of Deeds. APN: 002,412,012 End of Legal Description CERTIFICATE OF ACCEPTANCE, GOVT CODE SECTION..27281 This is to certify that the City of San Luis. Obispo, grantee herein, hereby accepts for public purposes the real property, or interest therein, described in the within deed, that specific Grant Deed dated 11 ixA e, 1 R 1200 tP executed by Yvonne Lorraine Greenaway, and consents to the recordation thereof In Witness Whereof, I have hereunto set my hand this /0 day of —\3-Cd ; 2006 ATTEST: City CleriO 2 END OF DOCUMENT - -- --- - +I1 OCT 2 2006 CITY OF "'A' l UESTA ITLE COMPANY September 22, 2006 715 Tank Farm Road, #120 • San Luis Obispo, CA 93401 • (805) 544 -1860 • FAX (805) 541 -1769 City of San Luis Obispo 955 Morro Street , San Luis Obispo, CA 93401 Attn: Peggy Mandeville RE: Escrow Number 610944 -MGS Property Address 614 Monterey Street, San Luis Obispo, California 93401 The above escrow closed on September 21, 2006; in connection therewith we enclose the following: - Refund check in the amount of $366.67 Final Closing Statement (PLEASE RETAIN FOR TAX PURPOSES) Copy of Certificate ofNon- Foreign Status of Seller - Copy of recorded Grant Deed Copy of Rental. Statement - Copy of Estoppel Certificate Copy of signed closing authorization to escrow instructions Recorded documents to which you are entitled will be mailed to you by the County Recorder's Office. Any other documents to which you may be entitled will be forwarded to you as soon as they are available. Thank you for the opportunity to be of service to you in this transaction. We look forward to working with you again and wish you the best of success in your new business venture. Sincerely, Cuesta Title Company Assistant Vice President Cc: Dave Jewell Hamner, Jewell & Associates with copies of the above 340 James Way, Suite 150 Pismo Beach, CA 93449 Buyer's'Finai Closing Statement File 610944 Buyer(s) Seller(s) Lender Property 9121/06 3:58 Cuesta Title Company (805) 54i- Buyer's Final Closing Statem City of San Luis Obispo, 955 Morro Street, San Luis Obispo, CA 93401 1 Yvonne Lorraine Greenaway, PO Box 637, Atascadero, CA 93423 \_J 1860 ent 614 Monterey Street, San Luis Obispo, CA 93401 Closing date 9/21/2006 Proration date 9/21/2006 Bank CNB - City National Bank Escrow Unit 10 - Main Office - SLO1 Escrow Officer Martha Sohacki Contract. Sales Price ...... Additional Credits: Deposit from City of San Luis Obispo......:.. Debit Credit ...............:...... ............................... 1,165,000.00 Prorations: Proration of monthly_ rental of $1,000.00 From 9/21/2006 to .9/26/2006 @ $33. 3300 / day ........... ............................... Security Deposit: Credit buyer /Debit Seller ..................... ............................... Title Charges: Settlement or closing fee to Cuesta Title Company .......... Title insurance to Cuesta Title Company $1,219.75.......... Owner's coverage to Cuesta Title Company Liability amount $1, 165, 000: 00 ........................................................... :......... 1,219.75 Subtotal: 1,166,885.25 1,167,251.92 Balance due to Buyer: 366.67 _ Totals: 1,167,251.92 1;167,251.92 665.50 1,166,885.25 166.67 200.00 Page 1 r � SELLER'S AFFIDAVIT OF NON - FOREIGN STATUS AND /OR CALIFORNIA RESIDENCY Escrow Number: 610944 (FOREIGN INVESTMENT IN REAL PROPERTY TAX ACT (FIRPTA) AND CALIFORNIA NONRESIDENT WITHHOLDING LAW) Section 1445 of the Internal Revenue Code provides that a transferee of a U.S. real property interest must withhold tax if the transferor is a "foreign person." Section 18662 of the California Revenue and Taxation Code provides that a transferee of a California real property interest must withhold tax if the transferor's proceeds will be disbursed to a financial intermediary of the transferor, or to the transferor with a last known street address outside of California. Section 26131 of the California Revenue and Taxation Code includes additional provisions for corporations. I understand that this certification may be disclosed to the Internal Revenue Service and to the California Franchise Tax Board by the transferee and that any false statement I have made herein (if an entity Transferor, on behalf of the Transferor) could be punished by fine, imprisonment or both. To inform the transferee that withholding of tax is not required upon the disposition of the U.S. and/or California real property interest located at: 614 Monterey Street, San Luis Obispo, California 93401. I hereby certify the following (if an entity transferor, on behalf of the transferor): FEDERAL LAW (FIRPTA) THIS SECTION FOR INDIVIDUAL TRANSFEROR: . 1. I am not a nonresident alien for purposes of U.S. income taxation; 2. My U.S. taxpayer identifying number (Social Security number) is .:1-7/ - �o �,, �,� ; and 3. My home address is THIS SECTION FOR CORPORATION, PARTNERSHIP, TRUST, OR ESTATE TRANSFEROR: 1 [Name of Transferor]( "Transferor ") is not a foreign corporation, foreign partnership, foreign trust, or foreign estate (as those terms are defined in the Internal Revenue Code and Income Tax Regulations); 2. Transferor's U.S. employer identification number is 3. Transferor's Office address is and 4. I, the undersigned individual, declare that I have authority to sign this document on behalf of the Transferor. Under penalties of perjury I declare that I have examined this certification and to the best of my knowledge and verify it is true, correct and complete. Date: 7/i y/o Signature Telephone: ��o� =sc�� _. ?19..W- Typed or printed name _Yvonne Lorraine Greenaway Title [if signed on behalf of an entity transferor] CALIFORNIA LAW THIS SECTION FOR INDIVIDUAL TRANSFEROR 1. I am a Q married, 7 single resident of California and reside at the address shown below; 2. My U.S. taxpayer identifying number (Social Security number) is a3 '?/- ,jd and 3. My home address is ���, K ��ya 74 fix CLC_o <2,z� 93 3 THIS SECTION FOR CORPORATION TRANSFEROR: 1' [Name of Transferor] ( "Transferor ") is a corporation qualified to do business in California or has a permanent place of business in California at the address shown below; Transferor's California corporation number issued by the Secretary of State is Transferor's office address is ;and I, the undersigned individual, declare that I have authority to sign this document on behalf of the Transferor. Under penalties of perjury I declare that I have examined this certification and to the best of my knowledge and belief it is true, correct and complete. Date:, _71241-'4 Signature: Telephone: Typed or printed name Yvonne Lorraine Greenaway Title [if signed on behalf of an entity transferor] 4. IMPORTANT NOTICE: An affidavit should be signed by each individual or entity transferor to whom or to which. it applies. Before you sign, any questions relating to the legal sufficiency of this form, or to whether it applies to a particular transaction, or to the definition of any of the terms used, should be referred to an attorney, certified public accountant, other professional tax advisor, the Internal Revenue Service, or the California Franchise Tax Board. q UESTA ITLE 01 COMPANY 715 Tank Faun Road, #120 • San Luis Obispo, CA 93401 • (805) 544 -1860 • FAX (805) 54 1 -1 Date June 29, 2006 Escrow Officer Martha Sohacki Escrow Number 610944 Property Address 614 Monterey Street San Luis Obispo, California 93401 .Rental Statement That rents as to the property I am conveying may adjusted through this escrow, I hereby state that the rentals as to amounts, dates due, and dates paid to, are as follows: It is understood, unless I have notified you in writing of some change in tenancy, that I will collect any and all rents, which hereafter become due in accordance with the above - mentioned statement and prior to the close of escrow and you are instructed to prorate accordingly. You will also pay any security money as shown by this statement to the purchaser at the close of escrow and charge:to my account. Selleerr(s): vonne Lorrai Greenaway I hereby approve the above statement as the basis for rent adjustment through this escrow. Buyer(s): City of San Luis Obispo vName: />7 v Title: ESTOPPEL CERTIFICATE Escrow No. 610944 -M GS FACTS: This Certificate pertains.to conditions under the following agreement: ❑ Lease Month- to-month rental ❑Other Dated: _� /ice atT��se�c�a�n . California Entered into by and between Lessor: / ✓n n, >� /`nn�.a; +, a. L.�i't. .air .a �-,a. Tenant/Lessec: Regarding property located at: ! / i't, -e STATEMENT: Lessor certifies as follows: 1 The Lease/Rental Agreement is Q Unmodified and in effect or Q Modified & in effect under Modifications Agreement dated: 2. If the agreement is a. Lease, the current term is £or years, ending with Lease renewal/extension/option term which nuns until 3. The amount of monthly rental is S /,7 = currently paid.through period ending 4. A Security Deposit of $ sge,,) — is currently held by Lessor. 5. 1 have not assigned nor sub - leased any portion of the premises EXCEPT AS FOLLOWS: _ 6. 1 have no knowledge of damage to the property EXCEPT: 7. No breach of the Agreement by Lessor or Lessee presently exists. 8. These statements may be relied upon by Lessee, the purchaser of the premises, and/or any Lender who extends credit on the premises. I or o Date"� Address:. 1-174. City, State, Zip: ritasa� �J«- n.l'r9 43 �f z3 Telephone: b --:t i 4 Wei RA L. UESTA ITLE COMPANY 715 Tank farm Road, #120 • San Luis Obispo, CA 93401 • (805) 544 -1860 • rAX (805) 541 -1769 Escrow Officer Martha G. Sohacki Escrow Number 610944 -MGS Property Address 61.4 Monterey Sheet, San Taus Obispo, California 93401 CLOSING AUTHORIZATION TO ESCROW INSTRUCTIONS CUESrA TITLE COMPANY IS LICENSED BY THE STATE OF CALIFORNIA UNDER THE DEPARTMENT OF INSURANCE. LICENSE NO. 73459 By execution below, Buyer and Seller acknowledge that all terms and conditions of the Purchase and Sale Agreement and Escrow instructions, including any /all amendments to same, have been fully satisfied and hereby authorize Cuesta Title Company to close escrow as soon as possible. All other terms and conditions to remain the same. i have received a copy of these instructions as evidenced by my signature below. Buyer(s): ity of San Wis Obispo „ Scllcr( /s): Y nn Lorraine GrSinaway PW CALIFORNIA ASSOCIATION PROPERTY MANAfMENT AGREEMENT OF REALTORS® 0 (C.A.R. Form , Revised 4/03) rity of San 1-13JR Obispo ( "Owner"), and ( "Brokers), agree as follows: 1. APPOINTNI caner Aere y Aiopoints and grants Broker the exclusive right to rent, lease, operate and manage the property(ies) known as _ 614 Monf -arc . and any additional grope that may later be added to this Agreement ( "Property"), upon the terms below, for the period beginning (date) and ending (date) , at 11:59 PM. (If checked :) ❑ Either party may terminate this Property Management Agreement ( "Agreement") on at least 30 days written notice months. after the original commencement date of this Agreement. After the exclusive term expires, this Agreement shall continue as a non - exclusive agreement that either party may terminate by giving at least 30 days written notice to the other. 2. BROKER ACCEPTANCE: Broker accepts the appointment and grant, and agrees to: A. Use due diligence in the performance of this Agreement. B. Fumish the services of its firm for the rental, leasing, operation and management of the Property. 3. AUTHORITY AND POWERS: Owner grants Broker the authority and power, at Owner's expense, to: A. ADVERTISING: Display FOR RENT /LEASE and similar signs on the Property and advertise the availability of the Property, or any part thereof, for rental or lease. B. RENTAL;LEASING: Initiate, sign, renew, modify or cancel rental agreements and leases for the Property, or any part thereof; collect and give receipts for rents, other fees, charges and security deposits. Any lease or rental agreement executed by Broker for Owner shall not exceed nne year(s) or ❑ shall be month -to- month. Unless Owner authorizes a lower amount, rent shall be: 4 at market rate; OR ❑ a minimum of $ per OR ❑ see attachment. C. TENANCY TERMINATION: Sign and serve in Owner's name notices that are required or appropriate; commence and prosecute actions to evict tenants; recover possession of the Property in Owner's name; recover rents and other sums due; and, when expedient, settle, compromise and release claims, actions and suits and/or reinstate tenancies. D. REPAIR; MAINTENANCE: Make, cause to be made, and /or supervise repairs, improvements, alterations and decorations to the Property; purchase, and pay bills for, services and supplies. Broker shall obtain prior approval of Owner for all expenditures over $ 3 n n an for any one item. Prior approval shall not be required for monthly or recurring operating charges or, if in Broker's opinion, emergency expenditures over the maximum are needed to protect the Property or other property(ies) from damage, prevent injury to persons, avoid suspension of necessary services, avoid penalties or fines, or suspension of services to tenants required by a lease or rental agreement or by law, including, but not limited to, maintaining the Property in a condition fit for human habitation as required by Civil Code §§ 1941 and 1941.1 and Health and Safety Code §§ 17920.3 and 17920.10. E. REPORTS, NOTICES AND SIGNS: Comply with federal, state or local law requiring delivery of reports or notices and/or posting of signs or notices. F. CONTRACTS; SERVICES: Contract, hire, supervise and/or discharge firms and persons, including utilities, required for the operation and maintenance of the Property. Broker may perform any of Broker's duties through attorneys, agents, employees, or independent contractors and, except for persons working in Broker's firm, shall not be responsible for their acts, omissions, defaults, negligence and /or costs of same. G. EXPENSE PAYMENTS: Pay expenses and costs for the Property from Owner's funds held by Broker, unless otherwise directed by Owner. Expenses and costs may include, but are not limited to, property management compensation, fees and charges, expenses for goods and services, property taxes and other taxes, Owner's Association dues, assessments, loan payments and insurance premiums. H. SECURITY DEPOSITS: Receive security deposits from tenants, which deposits shall be ❑ given to Owner, or ❑ placed in Broker's trust account and, if held in Broker's trust account, pay from Owner's funds all interest on tenants' security deposits if required by local law or ordinance. Owner shall be responsible to tenants for return of security deposits and all interest due on security deposits held by Owner. I. TRUST FUNDS: Deposit all receipts collected for Owner, less any sums properly deducted or disbursed, in a financial institution whose deposits are insured by an agency of the United States government. The funds shall be held in a trust account separate from Broker's personal accounts. Broker shall not be liable in event of bankruptcy or failure of a financial institution. J. RESERVES: Maintain a reserve in Broker's trust account of $ 2 n n n n K. DISBURSEMENTS: Disburse Owner's funds held in Broker's trust account in the following order: (1) Compensation due Broker under paragraph 6. (2) All other operating expenses, costs and disbursements payable from Owner's funds held by Broker. (3) Reserves and security deposits held by Broker. (4) Balance to Owner. L. OWNER DISTRIBUTION: Remit funds, if any are available, monthly (or ❑ monthly Y ), to Owner. M. OWNER STATEMENTS: Render monthly (or ❑ month 1 Y ), statements of receipts, expenses and charges for each Property. N. BROKER FUNDS: Broker shall not advance Broker's own funds in connection with the Property or this Agreement. O. ❑ (If checked) Owner authorizes the use of a keysafe/lockbox to allow entry into the Propery and agrees to sign a keysafe/ lockbox addendum (C.A.R. Form KLA). The copyright laws of the United States (title 17 U.S. Code) forbid the unauthorized Owner's Initials ( ) reproduction of this form, or any portion thereof, by photocopy machine or any other Broker's Initials )( ) means, Including facsimile or computerized formats. Copyright* 1991 -2003, CALIFORNIA ASSOCIATION OF REALTORS®, INC. ALL RIGHTS RESERVED. Reviewed by Date eauuxwsnrR PMA REVISED 4/03 (PAGE 1 OF 3) Print Date BDC Nov 04 OPPORTURrT OWNER'S COPY D12noFRTV UANer.FMFNT of;RFFMFNT (PMA PAGE 1 OF 31 4. OWNER RESPONSIBILITIES: Ownell: A. Provide all documentation, record disclosures as required by law or required by0er to manage and operate the Property, and immediately notify Broker if Owner becomes aware of any change in such documentation, records or disclosures, or any matter affecting the habitability of the Property. B. Indemnify, defend and hold harmless Broker, and all persons in Broker's' firm; regardless of responsibility, from all costs, expenses, suits, liabilities, damages, attorney fees and claims of every type,, including but not limited to those arising out of injury or death of any person, or damage to any real or personal property of any person, including Owner, for: (i) any repairs performed by Owner or by others hired directly by Owner; or (ii) those relatiI�g .to the management, leasing, rental, security deposits, or operation of the Property by Broker, or any person in Broker's firm, or the performance or exercise of any of the duties, powers or authorities granted to Broker. C. Maintain the Property in a condition fit for human habitation as required by Civil Code §§ 1941 arid. 1941.1 and Health and Safety Code §§ 17920.3 and 1,7920.10 and other applicable law. D. Pay all interest on tenants' security deposits if required by local law or ordinance. E. Carry and pay for: (i) public and premises liability insurance in an amount of no less than $1,000,000; and (ii) property damage and worker's compensation insurance adequate to protect the interests. of Owner and Broker. Broker shall be, and Owner authorizes Broker to be, named as an additional insured party on Owner's policies. F. Pay any late charges, penalties and/or interest imposed by lenders or other parties for failure to make payment to those parties, if the failure is due to insufficient funds in Broker's trust account available for such payment. G. Immediately replace any funds required if there are insufficient funds in Broker's trust account to cover Owner's responsibilities. 5. LEAD -BASED PAINT DISCLOSURE: A. ❑ The Property was constructed on or after January 1, 1978. OR B. ❑ The Property was constructed prior to 1978. (1) Owner has no knowledge of lead -based paint or lead -based paint hazards in the housing except: no knowledge (2) Owner has no reports or records pertaining to lead -based paint or lead -based paint hazards in the housing, except the following, which Owner shall provide to Broker: none 6. COMPENSATION: A. Owner agrees to pay Broker fees in the amounts indicated below for: (1) Management: 7% of gross rents Collected (2) Renting or Leasing: included (3) Evictions: attorney's fees (4) Preparing Property for rental or lease: c„rrPnt rate $30 per hour (5) Managing Property during extended.periods of vacancy: n % -- (6) An overhead and service fee added to the cost of all work performed by, or at the direction of, Broker: none (7) Other: B. This Agreement does not include providing on -site management services, property sales, refinancing, preparing Property for sale or refinancing, modernization, fire or major damage restoration, rehabilitation, obtaining income tax, accounting or legal advice, representation before public agencies, advising on proposed new construction, debt collection, counseling, attending Owner's Association meetings or none If Owner requests Broker to perform services not included in this Agreement, a fee shall be agreed upon before these services are performed. C. Broker may divide compensation, fees and charges due under this Agreement in any manner acceptable to Broker. D. Owner further agrees that: (1) Broker may receive and keep fees and charges from tenants for: (i) requesting an assignment of lease or sublease of the Property; (ii) processing credit applications; (iii) any returned checks and /or (❑ if checked) late payments; and (iv) any other services that are not in conflict with this Agreement.. (2) Broker may perform any of Broker's duties, and obtain necessary products and services, through affiliated companies or organizations in which Broker may own an interest. Broker may receive fees, commissions and/or profits from these affiliated companies or organizations. Broker has an ownership interest in the following affiliated companies or organizations: Broker shall disclose to Owner any other such relationships.as they occur. Broker shall not receive any fees, commissions or profits from unaffiliated companies or organizations in the performance of this Agreement, without prior disclosure to Owner. (3) Other: none 7. AGENCY RELATIONSHIPS: Broker shall act, and Owner hereby consents to Broker acting, as dual agent for Owner and tenant(s) in any resulting transaction. If the Property includes residential property with one -to -four dwelling units and this Agreement permits a tenancy in excess of one year, Owner acknowledges receipt of the "Disclosure Regarding Agency Relationships" (C.A.R. Form AD). Owner understands that Broker may have or obtain property management agreements on other property, and that potential tenants may consider, make offers on, or lease through Broker, property the same as or similar to Owner's Property. Owner consents to Broker's representation of other owners' properties before, during and after the expiration of this Agreement. 8. NOTICES: Any written notice to Owner or Broker required under this Agreement shall be served by sending such.notice by first class mail or other agreed -to delivery method to that parry at the address below, or at any different address the parties may later designate for this purpose. Notice shall be deemed received three (3) calendar.days after deposit into the United States mail OR ❑ Owner's Initials )�) Broker's Initials ) Copyright ®1991 -2003, CALIFORNIA ASSOCIATION OF REALTORS®, INC. Reviewed by Date Emwxa� PMA REVISED 4103 (PAGE 2 OF 3) oPVOrtruxin OWNER'S COPY PROPERTY. MANAGEMENT AGREEMENT (PMA PAGE 2 OF 3� 9. DISPUTE RESOLUTION A. MEDIATION: Owner and Broke ee to mediate any dispute or claim arising *ph en them out of this Agreement, or any resulting transaction before resdW to arbitration or court action, subject to par. 9B(2) below. Paragraph 9B(2) below applies whether or not the arbitration provision is initialed. Mediation fees, if any, shall be divided equally among the parties involved. If, for any dispute or claim to which this paragraph applies, 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, or refuses to mediate after a request has been made, then that party shall not be entitled.to recover attorney 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: (1) Owner and Broker agree that any dispute or claim in law or equity arising between them regarding the obligation to pay compensation under this agreement, which is not settled through mediation, shall be decided by neutral, binding arbitration, including and subject to paragraph 9B(2) 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. The parties shall have the right to discovery in accordance with Code of Civil Procedure § 1283.05. In all other respects, the arbitration shall be conducted in accordance with Title 9 of Part III of the California Code of Civil Procedure. Judgment upon the award of the arbitrator(s) may be entered in any court having jurisdiction. Interpretation of this agreement to arbitrate shall be governed by the Federal Arbitration Act. (2) EXCLUSIONS FROM MEDIATION AND ARBITRATION: The following matters are excluded from mediation and arbitration hereunder: (i) a judicial or non - judicial foreclosure or other action or proceeding to enforce a deed of trust, mortgage, or installment land sale contract as defined in Civil Code § 2985; (ii) an unlawful detainer action; (iii) the filing or enforcement of • mechanic's lien; and (iv) any matter that is within the jurisdiction of a probate, small claims, or bankruptcy court. The filing of • 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 waiver of the mediation and arbitration provisions. "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 DISPUTESING OUT OF THE MATTERS INCLUDED IN THE `ARBITRATION OF DISPUTES' PROVISION TO NEUTRAICARBITRATION." Owner's Initials �y�/ Broker's InitW�/ 10. EOUAL HOUSING OPPORTUNITY: The Property is offered in compliance with federal, state and local anti - discrimination laws. 11. ATTORNEY FEES: In any action, proceeding or arbitration between Owner and Broker regarding the obligation to pay compensation under this Agreement, the prevailing Owner or Broker shall be entitled to reasonable attorney fees and costs from the non - prevailing Owner or Broker, except as provided in paragraph 9A. 12. ADDITIONAL TERMS: ❑ Kevsafe /Lockbox Addendum (C.A.R. Form KLA); ❑ Lead -Based Paint and Lead -Based Paint Hazards Disclosure (C.A.R. Form FLD) 13. TIME OF ESSENCE; ENTIRE CONTRACT; CHANGES: Time is of the 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. If any provision of:this Agreement is held to be ineffective or invalid, the remaining provisions will nevertheless be given full force and effect. Neither this Agreement nor any provision in it may be extended, amended, modified, altered or changed except in writing. This Agreement and any supplement, addendum or modification, including any copy, may be signed in two or more counterparts, all of which shall constitute one and the same writing. Owner warrants that Owner is the owner of the Property or has the authority to execute this contract. Owner cknowledges Owner has read, understands, accepts and has received a copy of the Agreement. , l Owner S Owner Print Name Address Telephone Owner Owner Print Name Address Telephone Real Estate By (Agent) Social Security/Tax ID # (for tax reporting city ��it/L.!/o oe1sP0 State Zip I7-0)M1V 1Q E -mail Date Social Securitylrax ID # (for tax reporting purposes) City State Zip Fax E -mail Califnrnia-wesf Tnc Date City San T.,, ; c Obispo State C A Zip 93401 Telephone 805 543 -9119 Fax 543 -5428 E -mail t.c THIS FORM HAS BEEN APPROVED BY THE CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.). NO REPRESENTATION IS MADE AS TO THE LEGAL VALIDITY ADEQUACY OF ANY PROVISION IN ANY SPECIFIC TRANSACTION. 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 This form is available for use by the entire real estate industry. It is not intended to identify the user as a REALTORS. REALTORS is a registered collective membership mark which may be used only by members of the NATIONAL ASSOCIATION OF REALTORS® who subscribe to its Code of Ethics. Published and BUSINESS ER =SLRE4�1. � i « REAL ESTATE BUSINESS SERVICES, INC. a subsidiary of the Calfforrtla Association of REALTORS The System for Success- 525 South Virgil Avenue, Los Angeles, California 90020 Reviewed by Date cauat xalaec EOUA OPPORTUNITY PMA REVISED 4/03 (PAGE 3 OF 3) OWNER'S COPY PROPERTY MANAGEMENT AGREEMENT (PMA PAGE 3 OF 3) HftIER, JEW ELL & ASSMATES RECEIVED Government Real Estate Services JAN Q 5 200; a division of Beacon Integrated Professional Resources, Inc. Ventura County Office: 3639 Harbor Boulevard, Suite 210, Ventura, Californi CITY CLERK Tel: (805) 658 -8844 Fax: (805) 658 -8859 ® San Luis Obispo County Office: 340 James Way, Suite 150, Pismo Beach, California 93449 Tel: (805) 773 -1459 Fax: (805) 773 -2418 DOCUMENT TRANSMITTAL ❑ By U.S. Mail TO: Peggy Mandeville DATE: Dec. 28, 2006 City of San Luis Obispo 990 Palm St. — Planning & Development San Luis Obispo, CA 93401 FROM: Lillian D. Jewell Hamner, Jewell & Associates SUBJECT: City of San Luis Obispo — Greenaway Property Acquisition DOCUMENT ➢ Policy of Title Insurance ENCLOSED: MESSAGE: Hi Peggy, I am forwarding a copy of the Title Insurance Policy as promised in my earlier letter dated November 17, 2006. You will need this document to complete your files on the Greenaway Acquisition Project. Please be sure it is retained in the City's permanent files. It has been a pleasure assisting the City on this transaction. Please feel free to call on me if you have any questions or need any further assistance on this or any future property rights issues. Happy New Year! q U ESTA ILE COMPANY December 13, 2006 L7 7A 715 Tank Farm Road, 4120 • San Luis Obispo, CA 93401 • Hamner Jewell & Associates Attention: Dave Jewell RE: File Number 610944 Property Address 614 Monterey Street San Luis Obispo, California 93401 71� 544 -1860 • FAX (805) 541 -1769 We enclose herewith the following in connection with the above referenced file number: Original Owners Policy We appreciate having had this opportunity to be of service to you. Sincerely, Cuesta Title Company Marcus Harmon Title Officer enclosures CLTA Standard Coverage Policy —1990 Order Number: 610944 POLICY OF TITLE INSURANCE ISSUED BY STEWART TITLE GUARANTY COMPANY SUBJECT TO THE EXCLUSIONS FROM COVERAGE, THE EXCEPTIONS FROM COVERAGE CONTAINED IN SCHEDULE B AND THE CONDITIONS AND STIPULATIONS, STEWART TITLE GUARANTY COMPANY, a Texas corporation, herein called the Company, insures, as of Date of Policy shown in Schedule A, against loss or damage, not exceeding the Amount of Insurance stated in Schedule A, sustained or incurred by the insured by reason of: 1. Title to the estate or interest described in Schedule A being vested other than as stated therein; 2. Any defect in or lien or encumbrance on the title; 3. Unmarketability of the title; 4. Lack of a right of access to and from the lands and in addition, as to an insured lender only: 5. The invalidity or unenforceability of the lien of the insured mortgage upon the title; 6. The priority of any lien or encumbrance over the lien of the insured mortgage; said mortgage being shown in Schedule B in the order of its priority; 7. The invalidity or unenforceability of any assignment of the insured mortgage, provided the assignment is shown in Schedule B, or the failure of the assignment shown in Schedule B to vest title to the insured mortgage in the named insured assignee free and clear of all liens. The Company will also pay the costs, attorneys' fees and expenses incurred in defense of the title or the lien of the insured mortgage, as insured, but only to the extent provided in the Conditions and Stipulations. In witness whereof, Stewart Title Guaranty Company has caused this policy to be signed and sealed by its duly authorized officers as of Date of Policy shown in Schedule A. 5tilitn4'. - ,. Chai —an of thr Board Countersigned: ?'C� - Authorized Countersignature STEWART TITLE OF CALIFORNIA, INC. STEWART TITLE GUARANTY COMPANY •� �— f�'� Pranidaai 1908 0 TEX Policy No.: 0- 2228 - 310018 Serial No. 0- 2228 - 310018 Page 1 of 10 W: r CLTA Standard Coverage Policy —1990 M Order Number: 610944 EXCLUSIONS FROM COVERAGE The following matters are expressly excluded from the coverage of this policy and the Company will not pay loss or damage, costs, attorneys' fees are expenses which arise by reason of: 1. (a) Any law, ordinance or governmental regulations (including but. not limited to building or zoning laws, ordinances, or regulations) restricting, regulating, prohibiting or relating to (i) the occupancy, use, or enjoyment of the land; (ii) the character, dimensions or location of any improvement now or hereafter erected on the land; (iii) a separation in ownership or a change in the dimensions or area of the land or any parcel of which the land is or was a part; or (iv) environmental protection, or the effect of any violation of these laws, ordinances or governmental regulations, except to the extent that a notice of the enforcement thereof or a notice of a defect, lien or encumbrance resulting from a violation or alleged violation affecting the land has been recorded in the public records at Date of Policy. (b) Any governmental police power not excluded by (a) above, except to the extent that a notice of the exercise thereof or a notice of a defect, lien or encumbrance resulting from a violation or alleged violation affecting the land has been recorded in the public records at Date of Policy. 2. Rights of eminent domain unless notice of the exercise thereof has been recorded in the public records at Date of Policy, but not excluding from coverage any taking which has occurred prior to Date of Policy which would be binding on the rights of a purchaser for value without knowledge. 3. Defects, liens, encumbrances, adverse claims or other matters: (a) whether or not recorded in the public records at Date of Policy, but created, suffered, assumed or agreed to by the insured claimant; (b) not known to the Company, not recorded in the public records at Date of Policy, but known to the insured claimant and not disclosed in writing to the Company by the insured claimant prior to the date the insured claimant became an insured under this policy; (c) resulting in no loss or damage to the insured claimant; (d) attaching or created subsequent to Date of Policy; or (e) resulting in loss or damage which would not have been sustained if the insured claimant had paid value for the insured mortgage or for the estate or interest insured by this policy. 4. Unenforceability of the lien of the insured mortgage because of the inability or failure of the insured at Date of Policy, or the inability or failure of any subsequent owner of the indebtedness, to comply with the applicable doing business laws of the state in which the land is situated. 5. Invalidity or unenforceability of the lien of the insured mortgage, or claim thereof, which arises out of the transaction evidenced by the insured mortgage and is based upon usury or any consumer credit protection or truth in lending law. 6. Any claim, which arises out of the transaction vesting in the insured the estate of interest insured by this policy or the transaction creating the interest of the insured lender, by reason of the operation of federal bankruptcy, state insolvency or similar creditors' rights laws. CONDITIONS AND STIPULATIONS 1. Definition or Terms. The following terms when used in this policy mean: (a) "insured ": the insured named in Schedule A, and, subject to any rights or defenses the Company would have had against the named insured, those who succeed to the interest of the named insured by operation of law as distinguished from purchase including, but not limited to, heirs, distributees, devisees, survivors, personal representatives, next of kin, or corporate or fiduciary successors. The term "insured" also includes: (i) the owner of the indebtedness secured by the insured mortgage and each successor in ownership of the indebtedness except a successor who is an obligor under the provisions of Section 12(c) of these Conditions and Stipulations (reserving, however, Al rights and defenses as to any successor that the Company would have had against any predecessor insured, unless the successor acquired the indebtedness as a purchaser for value without knowledge of the asserted defect, lien, encumbrance, adverse claim Q other matter insured against by this policy as affecting title to the estate or interest.in the land); (ii) any governmental agency or governmental instrumentality which is an insurer or guarantor under an insurance contract or guaranty insuring or guaranteeing the indebtedness secured by the insured mortgage, or any part thereof, whether named as an insured herein or not; (iii) the parties designated in Section 2(a) of these Conditions and Stipulations. (b) "insured claimant ": an insured claiming loss or damage. (c) "insured lender ": the owner of an insured mortgage. (d) "insured mortgage ": a mortgage shown in Schedule B, the owner of which is named as an insured in Schedule A. (e) "knowledge" or "known ": actual knowledge, not constructive knowledge or notice which may be imputed to an insured by reason of the public records as defined in this policy or any other records which impart constructive notice of matters affecting the land. (f) "land ": the land described or referred to in Schedule [A] [C], and improvements affixed thereto which by law constitute real property. The term "land" does not include any property beyond the lines of the area described or referred to in Schedule [A] [C], nor any right, title, interest, estate or Serial No. 0- 2228 - 310018 Page 2 of 10 r� �.J M CLTA Standard Coverage Policy —1990 i Order Number: 610944 easement in abutting streets, roads, avenues, alleys, lanes, ways or waterways, but nothing herein shall modify or limit the extent to which a right of access to and from the land is insured by this policy. (g) "mortgage ": mortgage, deed of trust, trust deed, or other secuity instrument. (h) "public records ": records established under state statutes at Date of Policy for the purpose of imparting constructive notice of matters relating to real property to purchasers for value and without knowledge. (i) "unmarketability of the title ": an alleged or apparent matter affecting the title to the land, not excluded or excepted from coverage, which would entitle a purchaser of the estate or interest described in Schedule A or the insured mortgage to be released from the obligation to purchase by virtue of a contractual condition requiring the delivery of marketable title. 2. Continuation of Insurance (a) After Acquisition of Title by Insured Lender. If this policy insures the owner of the indebtedness secured by the insured mortgage, the coverage of this policy shall continue in force as of Date of Policy in favor of (i) such insured lender who acquires all or any part of the estate or interest in the land by foreclosure, trustee's sale, conveyance in lieu of foreclosure, or other legal manner which discharges the lien of the insured mortgage; (ii) a transferee of the estate or interest so acquired from an insured corporation, provided the transferee is the parent or wholly -owned subsidiary of the insured corporation, and their corporate successors by operation of law and not by purchase, subject to any rights or defenses the Company may have against any predecessor insureds; and (iii) any governmental agency or governmental instrumentality which acquires all or any part of the estate or interest pursuant to a contract of insurance or guaranty insuring or guaranteeing the indebtedness secured by the insured mortgage. (b) After Conveyance of Title by an Insured. The coverage of this policy shall continue in force as of Date of Policy in favor of an insured only so long as the insured retains an estate or interest in the land, or holds an indebtedness secured by a purchase money mortgage given by a purchaser from the insured, or only so long as the insured shall have liability by reason of covenants of warranty made by the insured in any transfer or conveyance of the estate or interest. This policy shall not continue in force in favor of any purchaser from an insured of either (i) an estate or interest in the land, or (ii) an indebtedness secured by a purchase money mortgage given to an insured. (c) Amount of Insurance. The amount of insurance after the acquisition or after the conveyance by an insured lender shall in neither event exceed the least of (i) The amount of insurance stated in Schedule A; (ii) The amount of the principal of the indebtedness secured by the insured mortgage as of Date of Policy, interest thereon, expenses of foreclosure, amounts advanced pursuant to the insured mortgage to assure compliance with laws or to protect the lien of the insured mortgage prior to the time of acquisition of the estate or interest in the land and secured thereby and reasonable amounts expended to prevent deterioration of improvements, but reduced by the amount of all payments madq or (iii) The amount paid by an governmental agency or governmental instrumentality, if the agency or the instrumentality is the insured claimant, in the acquisition of the estate or interest in.satisfaction of its insurance contract or guaranty. 3. Notice of Claim to be Given by Insured Claimant. An insured shall notify the Company promptly in writing (i) in case of any litigation as set forth in 4(a) below, (ii) in case knowledge shall come to an insured hereunder of any claim of title or interest which is adverse to the title to the estate or interest or the lien of the insured mortgage, as insured, and which might cause loss or damage for which the Company may be liable by virtue of this policy, or (iii) if title to the estate or interest or the lien of the insured mortgage, as insured, is rejected as unmarketable. If prompt notice shall not be given to the Company, then as to that insured all liability of the Company shall terminate with regard to the matter or matters for which prompt notice is required; provided, however, that failure to notify the Company shall in no case prejudice the rights of any insured under this policy unless the Company shall be prejudiced by the failure and then only to the extent of the prejudice. 4. Defense and Prosecution of Actions; Duty of Insured Claimant to Cooperate. (a) Upon written request by an insured and subject to the options contained in Section 6 of these Conditions and Stipulations, the Company, at its own cost and without unreasonable delay, shall provide for the defense of such insured in litigation in which any third party asserts a claim adverse to the title or interest as insured, but only as to those stated causes of action alleging a defect, lien or encumbrance or other matter insured against by this policy. The Company shall have the right to select counsel of its choice (subject to the right of such insured to object for; reasonable cause) to represent the insured as to those stated causes of action and shall not be liable for and will not pay the fees of any other counsel. The company will not pay any fees, costs or expenses incurred by an insured in the defense of those causes of action which allege matters not insured against by this policy. (b) The Company shall have the right, at its own cost, to institute and prosecute any action or proceeding or to do any other act which in its opinion.may be necessary or desirable to establish the title to the estate or interest or the lien of the insured mortgage, as insured, or to prevent or reduce loss or damage to an insured. The Company may take any appropriate action under the terms of this policy, whether or not it shall be liable hereunder, and shall not thereby concede liability or waive any provision of this policy. If the Company shall exercise itrights under this paragraph, it shall do so diligently. (c) Whenever the Company shall have brought an action or interposed a defense as required or permitted by the provisions of this policy, the Company may pursue any litigation to final determination by a court of competent jurisdiction and expressly reserves the right, in its sole discretion, to appeal from any adverse judgment or order. (d) In all cases where this policy permits or requires the Company to prosecute or provide for the defense of any action or proceeding, an insured shall secure to the Company the right to so prosecute or provide defense in the action or proceeding, and all appeals therein, and permit the Company to use; at its option, the name of such insured for this purpose. Whenever requested by the Company, an insured, at the Company's expense, shall give the Company all reasonable aid (i) in any action or proceeding, securing evidence, obtaining witnesses, prosecuting or defending the action or proceeding, or effecting. settlement, and (ii) in any other lawful act which in the opinion of the Company may be necessary or desirable to establish the title to the estate or interest or the lien of the insured mortgage, as insured. If the Company-is prejudiced by the failure of an insured to furnish the required cooperation, the Company's obligations to such insured under the policy shall terminate, including any liability or obligation to defend, prosecute, or continue any litigation, with regard to the matter or matters requiring such cooperation. 5. Proof of Loss or Damage. In addition to and after the notices required under Section 3 of these Conditions and Stipulations have been provided the Company, a proof of loss or damage signed and sworn to by each insured claimant shall be furnished to the Company within 90 days after the insured claimant shall ascertain the facts giving rise to the loss or damage. The proof of loss or damage shall describe the defect in, or lien or encumbrance on the title, or other matter insured against by this policy which constitutes the basis of loss or damage and shall state, to the extent possible, the basis of calculating the amount of the loss or damage. If the Company is prejudiced by the failure of an insured claimant to provide the required proof of loss or damage, the Company's obligations to such insured under the policy shall terminate, including any liability or obligation to defend, prosecute, or continue any litigation, with regard to the matter or matters requiring such proof of loss or damage Serial No. 0- 2228 - 31.0018 Page 3 of 10 so CLTA Standard Coverage Policy -1990 M Order Number: 610944 In addition, an insured claimant may reasonably be required to submit to examination under oath by any authorized representative of the Company and shall produce for examination, inspection and copying, at such reasonable times and places as may be designated by any authorized representative of the Company, all records, books, ledgers, checks, correspondence and memoranda, whether bearing a date before or after Date of Policy, which reasonably pertain to the loss or damage. Further, if requested by any authorized representative of the Company, the insured cWmant.shall grant its permission, in writing, for any authorized representative of the Company to examine, inspect and copy all records, books, ledgers, checks, correspondence and memoranda in the custody or control of a third party, which reasonably pertain to the loss or damage. All information designated as confidential by an insured claimant provided to the Company pursuant to this Section shall not be disclosed to others unless, in the reasonable judgment of the Company, it is necessary in the administration of the claim. Failure of an insured claimant to submit for examination under oath, produce other reasonably requested information or grant permission to secure reasonably necessary information from third parties as required in this paragraph, unless prohibited by law or governmental regulation, shall terminate any liability of the Company under this policy as to that insured for that claim. 6. Options to Pay or Otherwise Settle Claims; Termination of Liability. In case of a claim under this policy, the Company shall have the following additional options: (a) To Pay or Tender Payment of the Amount of Insurance or to Purchase the Indebtedness. (i) to pay or tender payment of the amount of insurance under this policy together with any costs, attomeys' fees and expenses incurred by the insured claimant, which were authorized by the Company, up to the time of payment or tender of payment and which the Company is obligated to pay; or (ii) in case loss or damage is claimed under this policy by the owner of the indebtedness secured by the insured mortgage, to purchase the indebtedness secured by the insured mortgage for the amount owning thereon together with any costs, attorneys' fees and expenses incurred by the insured claimant which were authorized by the Company up to the time of purchase and which the Company is obligated to pay. If the Company offers to purchase the indebtedness as herein provided, the owner of the indebtedness shall transfer, assign, and convey the indebtedness and the insured mortgage, together with any collateral security, to the Company upon payment therefor. Upon the exercise by the Company of the option provided for in paragraph a(i), all liability and obligations to the insured under this policy, other than to make the payment required in that paragraph, shall terminate, including any liability or obligation to defend, prosecute, or continue any litigation, and the policy shall be surrendered to the Company for cancellaton. Upon the exercise by the Company of the option provided for in paragraph a(ii) the Company's obligation to an insured Lender under this policy for the claimed loss or damage; other than the payment required to be made, shall terminate, including any liability or obligation to defend, prosecute or continue any litigation. (b) To Pay or Otherwise Settle with Parties Other than the Insured or With the Insured Claimant. (i) to pay or otherwise. settle with other parties for or in the name of an insured claimant any claim insured against under this policy, together with any costs, attorneys' fees and expenses incurred by the insured claimant which were authorized by the Company up to the time of payment and which the Company is obligated to pay; or (ii) to pay or otherwise settle with the insured claimant the loss or damage provided for under this policy, together with any costs, attorneys' fees and expenses incurred by the insured claimant which were authorized by the Company up to the time of payment ad which the Company is obligated to pay. Upon the exercise by the Company of either of the options provided for in paragraphs b(i) or b(ii), the Company's obligations to the insured under this policy for the claimed loss or damage, other than the payments required to be made, shall terminate, including any liability or obligation to defend, prosecute or continue any litigation. 7. Determination and Extent of Liability. This policy is a contract of indemnity against actual monetary loss or damage sustained or incurred by the insured claimant who has suffered loss or damage by reason of matters insured against by this policy and only to the extent herein described. (a) The liability of the Company under this policy to an insured lender shall not exceed the last of (i) the Amount of Insurance stated in Schedule A, or, if applicable, the amount of insurance as defined in Section 2 (c) of these Conditions and Stipulations; (ii) the amount of the unpaid principal indebtedness secured by the insured mortgage as limited or provided under Section 8 of these Conditions and Stipulations or as reduced under Section 9 of theses Conditions and Stipulations, at the time the loss or damage insured against by this policy occurs, together with interest thereon; or (iii) the difference between the value of the insured estate or interest as insured and the value of the insured estate or interest subject to the defect, lien or encumbrance insured against by this policy. (b) In the event the insured lender has acquired the estate or interest in the manner described in Section 2(a) of these Conditions and Stipulations or has conveyed the title, then the liability of the Company shall continue asset forth in Section 7(a) of these Conditions and Stipulations. (c) The liability of the Company under this policy to an insured owner of the estate or interest in the land described in Schedule A shall not exceed the least of: (i) the Amount of Insurance stated in Schedule A; or, (ii) the difference between the value of the insured estate or interest as insured and the value of the insured estate or interest subject to the defect, lien or encumbrance insured against.by this policy. (d) The Company will pay only those costs, attomeys' fees and expenses incurred in accodance with Section 4 of these Conditions and Stipulations. 8. Limitation of Liability. (a) If the Company establishes the title, or removes the alleged defect, lien or encumbrance, or cures the lack of a right of access to or from the land, or cures the claim of unrnarketability of title, or otherwise establishes the lien of the insured mortgage, all as insured, in a reasonably diligent manner by any method, including litigation and the completion of any appeals therefrom, it shall have fully performed its obligations with respect to that matter and shall not be liable for any loss or damage caused thereby. (b) In the event of any litigation, including litigation by the Company or with the Company's consent, the Company shall have no liability for loss or damage until there has been a final determination by a court of competent jurisdiction, and disposition of all appeals therefrom, adverse to the title, or, if applicable, to the lien of the insured mortgage, as insured. (c) The Company shall not be liable for loss or damage to any insured for liability voluntarily assumed by the insured in settling any claim or suit without the prior written consent of the Company. (d) The Company shall not be liable to an insured lender for: (i) any indebtedness created subsequent to Date of Policy except for advances made to protect the lien of the insured mortgage and secured thereby and reasonable amounts expended to prevent deterioration of improvements; or (ii) construction loan advances made subsequent to Date of Policy, except construction loan advances made subsequent to Date of Policy for the purpose of Serial No. 0- 2228 - 310018 Page 4 of 10 0 Q& CLTA Standard Coverage Policy —1990 Order Number: 610944 financing in whole or in part the construction of an improvement to the land which at Date of Policy were secured by the insured mortgage and which the insured was and continued to be obligated to advance at and after Date of Policy. 9. Reduction of Insurance; Reduction or Termination of Liability. (a) All payments under this policy, except payments made for costs, attorneys' fees and expenses, shall reduce the amount of insurance pro tanto. However; as to an insured lender, any payments made prior to the acquisition of title to the estate or interest as provided in Section 2(a) of these Conditions and Stipulations shall not reduce pro tanto the amount of insurance afforded under this policy as to any such insured, except to the extent that the payments reduce the amount of the indebtedness secured by the insured mortgage. (b) Payment in part by any person of the principal of the indebtedness, or any other obligation secured by the insured mortgage, or any voluntary partial satisfaction or release of the insured mortgage, to the extent of the payment, satisfaction or release, shall reduce the amount of insurance pro tanto. The amount of insurance may thereafter be increased by accruing interest and advances made to protect the lien of the insured mortgage and secured thereby, with interest thereon, provided in no event shall the amount of insurance be greater than the Amount of Insurance stated in Schedule A. (c) Payment in full by any person or the voluntary satisfaction or release of the insured mortgage shall terminate all liability of the Company to an insured lender except as provided in Section 2(a) of these Conditions and Stipulations. 10. Liability Noncumulative. It.is expressly understood that the amount of insurance under this policy shall be reduced by any amount the Company may pay under any policy insuring a mortgage to which exception is taken in Schedule B or to which the insured has agreed, assumed, or taken subject, or which is hereafter executed by an insured and which is a charge or lien on the estate or interest described or referred to in Schedule A, and the amount so paid shall be deemed a payment under this policy to the insured owner. The provisions of this Section shall not apply to an insured lender, unless such insured acquires title to said estate or interest in satisfaction of the indebtedness secured by an insured mortgage. 11. Payment of Loss. (a) No payment shall be made without producing this policy for endorsement of the payment unless the policy has been lost or destroyed, in which case proof of loss or destruction shall be furnished to the satisfaction of the Company. (b) When liability and the extent of loss or damage has been definitely fixed in accordance with these Conditions and Stipulations, the loss or damage shall be payable within 30 days thereafter. 12. Subrogation Upon Payment or Settlement. (a) The Company's Right of Subrogation Whenever the Company shall have settled and paid a claim under this policy, all right of subrogation shall vest in the Company unaffected by any act of the insured claimant. The Company shall be subrogated to and be entitled to all rights and remedies which the insured claimant would have had against any person or property in respect to the claim had this policy not been issued. If requested by the Company, the insured claimant shall transfer to the Company all rights and remedies against any person or property necessary in order to perfect this right of subrogation. The insured claimant shall permit the Company to sue, compromise or settle in the name of the insured claimant and to use the name of the insured claimant in any transaction or litigation involving these rights or remedies. If a payment on account of a claim does not fully cover the loss of the insured claimant, the Company shall be subrogated (i) as to an insured owner, to all rights and remedies in the proportion which the Company's payment bears to the whole amount of the loss; and (ii) as to an insured lender, to all rights and remedies of the insured claimant after the insured claimant shall have recovered its principal, interest, and costs of collection. If loss should result from any act of the insured claimant, as stated above, that act shall not void this policy, but the Company, in that event, shall be required to pay only that part of any losses insured against by this policy which shall exceed the amount, if any, lost to the Company by reason of the impairment by the insured claimant of the Company's right of subrogation. (b) The Insured's Rights and Limitations. Notwithstanding the foregoing, the owner of the indebtedness secured by an insured mortgage, provided the priority of the lien of the insured mortgage or its enforceability is not affected, may release or substitute the personal liability of any debtor or guarantor; or extend or otherwise modify the terms of payment, or release a portion of the estate or interest from the lien of the insured mortgage, or release ay collateral security for the indebtedness. When the permitted acts of the insured claimant occur and the insured has knowledge of any claim of title or interest adverse to the title to the estate or interest or the priority or enforceability of the lien of an insured mortgage, as insured, the Company shall be required to pay only that part of any losses insured against by this policy which shall exceed the amount, if any, lost to the Company by reason of the impairment by the insured claimant of the Company's right of subrogation. (c) The Company's Rights Against Non-insured Obligors. The Company's right of subrogation against non - insured obligors shall exist and shall include, without limitation, the rights .of the insured to indemnities, guaranties, other policies of insurance or bonds, notwithstanding any terms or conditions contained in those instruments which provide for subrogation rights by reason of this policy. The Company's right of subrogation shall not be avoided by acquisition of an insured mortgage by an obligor (except an obligor described in Section 1(a)(ii) of these Conditions and Stipulations) who acquires the insured mortgage as a result of an indemnity, guarantee, other policy of insurance, or bond and the obligor will not be an insured under this policy, notwithstanding Section 1(a)(i) of these Conditions and Stipulations. 13. Arbitration. Unless prohibited by applicable law, either the Company or the insured may demand arbitration pursuant to the Title Insurance Arbitration Rules of the American Arbitration Association. Arbitrable matters may include, but are not limited to, any controversy or claim between the Company and the insured arising out of or relating to this policy, any service of the Company in connection with its issuance or the breach of a policy provision or other obligation. All arbitrable matters when the Amount of Insurance is $1,000,000 or less shall be arbitrated at the option of either the Company or the insured. All arbitrable matters when the Amount of Insurance is in excess of $1,000,000 shall be arbitrated only when agreed to by both the Company and the insured. Arbitration pursuant to this policy and under the Rules in effect on the date the demand for arbitration is made or, at the option of the insured, the Rules in effect at Date of Policy shall be binding upon the parties. The award may include attorneys' fees only if the laws of the state in which the land is located permit a court to award attorneys' fees to a prevailing party. Judgment upon the award rendered by the Arbitrator(s) may be entered in any court having jurisdiction thereof. The law of the situs of the land.shall apply to an arbitration under the Title Insurance Arbitration Rules. A copy of the Rules may be obtained from the Company upon requat. 14. Liability Limited to This Policy; Policy Entire Contract. Serial No. 0- 2228 - 310018 Page 5 of 10 CLTA Standard Coverage Policy —1990 Order Number: 610944 (a) This policy together with all endorsements, if any, attached hereto by the Company is the entire policy and contract between the insured and the Company.. In interpreting any provisionof this policy, this policy shall be construed as a whole. (b) Any claim of loss or damage, whether or not based on negligence, and which arises out of the status of the lien of the insured mortgage or of the title to the estate or interest covered hereby or by any action asserting such claim, shall be restricted to this policy. (c) No amendment of or endorsement to this policy can be made except by a writing endorsed hereon or attached hereto signed by either the President, a Vice President, the Secretary, an Assistant Secretary, or validating officer or authorized signatory of the Company. 15.. Severability. In the event any provision of the policy is held invalid or unenforceable under applicable law, the policy shall be deemed not to include that provision and all other provisions shall remain in full force and effect. 16. 'Notices, Wbere Sent. All notices required to be given the Company and any statement in writing required to be furnished the Company shall include the number of this policy and shall be addressed to the Company at P.O. Box 2029, Houston, Texas 77252 -2039, and identify this policy by its printed policy serial number which appears on the bottom of the front of the first page of this policy. STEWART TITLE GUARANTY COMPANY Serial No. 0- 2228 - 31.0018 Page 6 of 10 so CLTA Standard Coverage Policy —1990 r Order Number: 610944 SCHEDULE A Order No.: 61094.4 Policy No.: 0- 2228 - 310018 Amount of Insurance: $1,165,000.00 Premium: $1,519.75 Date of Policy: September 21, 2006 at 8:00 a.m. 1. Name of Insured: The City of San Luis Obispo, a Chartered Municipal Corporation of the State of California 2. The estate or interest in the land which is covered by this policy is: A Fee 3. Title to the estate or interest in the land is vested in: The City of San Luis Obispo, a Chartered Municipal Corporation of the State of California 4. The land referred to in this policy is described as follows:. (See Attached Legal Description) Serial No. 0- 2228 - 31.0018 Page 7 of 10 M � CLTA Standard Coverage Policy -1990 Order Number: 610944. LEGAL DESCRIPTION The land referred to herein is situated in the County of San Luis Obispo, State of California, and is described as follows: The Northeasterly fifty -nine feet of Lot 2 in Block 9 of the City of San Luis Obispo, in the City of San Luis Obispo, County of San Luis Obispo, State of California, according to Map recorded May 1, 1878, in Book A, Page 168 of Maps. EXCEPTING THEREFROM any portion of said land lying within property granted to William B. Haley in deed which recorded March 30, 1871 in Book C, Page 281 of Deeds. APN: 002,41.2,012 Serial No. 0- 2228 - 310018 Page 8 of 10 N CLTA Standard Coverage Policy —1990 M Order Number: 610944 SCHEDULE B PART EXCEPTIONS FROM COVERAGE This policy does not insure.against loss or damage (and the Company will not pay costs, attorneys' fees or expenses) which arise by reason of: 1. Taxes or assessments which are not shown as existing liens by the records of the taxing authority that levies taxes or assessments on real property or by the public records. Proceeding by a public agency which may result in taxes or assessments, or notices of such proceedings, whether or not shown by the records of such agency or by the public records. 2. Any facts, rights, interests or claims which are not shown by the public records but which could be ascertained by an inspection of the land or by making inquiry of persons in possession thereof. 3. Easements, liens or encumbrances, or claims thereof, which are not shown by the public records. 4. Discrepancies, conflicts in boundary lines, shortage in area, encroachments, or other facts which a correct survey would disclose, and which are not shown by the public records. 5. (a) Unpatented mining claims; (b) reservations or exceptions in patents or in acts authorizing the issuance thereof; (c) water rights, claims or title to water, whether or not the matters excepted under (a), (b) or (c) are shown by the public records. Serial No. 0- 2228 - 310018 Page 9 of 10 • CLTA Standard Coverage Policy —1990 SCHEDULE B PART II Go Order Number: 610944 1. 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. (End of Exceptions) Serial No. 0- 2228 - 310018 Page 10 of 10 :- lU9=1r0J T560179 :saps( 4w 6?d T sa62 d P a oa a S T3'Z aPlT Go odsr go sTn7 uaS :UOT4dFsosa( C1 y G 1ao.s s so.as q;� e _ fm so 8 yy Z� P V) N u -Ow m 0 O �8 to o Z� j 2 n CD o O CD CD 7 n Sv m W CD co m � { C1 y G 1ao.s s so.as m e _ fm yy Z� P V) N u c m v �8 to o Z� j 2 C1 y G 1ao.s so.as Cn 1 _ fm CCD �. 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