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Proposed Sale - APNs 634-061-068 and 634-062-028
CITY OF PALM DESERT /PALM DESERT HOUSING AUTHORITY JOINT CONSIDERATION STAFF REPORT REQUEST: REQUEST FOR APPROVAL OF THE PROPOSED SALE OF THE PROPERTIES LOCATED AT 43840 BLUEBERRY LANE (APN 634- 061-038) AND 75455 WILDFLOWER LANE (APN 634-062-028), PALM DESERT (PURSUANT TO HEALTH AND SAFETY CODE SECTION 33433(c)). SUBMITTED BY: Janet Moore, Director of Housing DATE: April 11, 2013 CONTENTS: Housing Authority Resolution No. HA-52 Draft Purchase and Sale Agreement for 43840 Blueberry Lane Draft Purchase and Sale Agreement for 75455 Wildflower Lane Draft Desert Rose Restrictive Covenant and Loan Documents Recommendation That the Authority Board, 1. Conduct a public hearing and accept testimony on the proposed sale of the properties located at 43840 Blueberry Lane, (APN 634-061-038) and 75455 Wildflower Lane (APN 634-062-028), to qualified households of low or moderate income; and 2. Following public testimony, close the public hearing, and request that the Authority Board waive further reading and adopt Resolution No. HA-52 approving the sale of the properties pursuant to the attached draft Purchase and Sale Agreements at the calculated resale prices of $131,960 for 43840 Blueberry Lane and $107,587 for 75455 Wildflower Lane or the fair market value of the properties, whichever is less. By Minute Motion, that the City Council and Authority Board, 3. Approve silent homebuyer assistance loans not to exceed forty percent (40%) of the sales price for each home to ensure an affordable housing cost for a qualified low or moderate income household from any available funding source restricted for such purpose (BEGIN, Housing Mitigation, Agency/Housing Authority program income); and 4. Authorize the payment of the transaction costs from the sale proceeds for the purpose of repairs required for closing, fees customary to real estate transactions in Riverside County including escrow, title, FHA fees, inspections, vermin eradication, commissions and disclosures; and HA-52 Staff Report Public Hearing APN 634-061-038 and APN 634-062-028 April 11, 2013 Page 2 of 3 5. Authorize the use of the Desert Rose sales program and documents including the restrictive covenant and loan documents for the applicable funding source, in their substantial form attached; and 6. Authorize the Authority Chairman and/or the Authority's Executive Director or his designee to finalize and execute the Purchase and Sales Agreements and any ancillary documents necessary to effectuate the sale and actions taken herewith. Background On July 14, 1994, the former Palm Desert Redevelopment Agency ("Agency") approved the initial sale of one hundred sixty-one (161) three and four bedroom single-family homes located in the Desert Rose Project ("Desert Rose") to households of low and moderate income, inclusive of any amendments thereafter. Based on the previously approved restrictive covenant, when an owner decides to sell, staff attempts to coordinate a direct sale from the owner to a new purchaser from a waitlist, however, during 2010 and 2011 there were no eligible households on the waitlist for Desert Rose. Because of this, the Agency purchased most of the houses that became available for sale in order to preserve the affordability covenant and the Agency's additional investments in the home. With the Governor's enactment of ABX1 26 and AB 1484 redevelopment agencies were effectively eliminated on February 1, 2012. The legislation prohibited agencies from entering into any new agreements, contracts, debts, loans, etc. which included the Agency's ability to purchase any additional properties or to sell any of the homes that were acquired. On February 9, 2012, the City adopted Resolution No. 2012-07 designating the Palm Desert Housing Authority ("Housing Authority") as the successor housing entity for all housing activities formerly completed by both the Agency and Housing Authority. On October 11, 2012, the Housing Authority Board accepted the housing functions and assets transferred pursuant to Resolution No. HA-47. The Housing Authority is proposing to sell two (2) single-family residences located at 43840 Blueberry Lane and 75455 Wildflower Lane in the Desert Rose Development (the "Properties") to qualified low or moderate income households. Health and Safety Code Section 33433(c) provides that the requirements of subdivisions (a) and (b) will not apply to the sale of a small housing project if the City Council adopts a resolution that authorizes the sale of small housing projects pursuant to Section 33433(c). Pursuant to its Resolution No. 03-34, adopted on April 10, 2003, the City Council authorized the Agency to sell small housing projects pursuant to Section 33433(c). On March 14, 2013, the City Council adopted Resolution No. 2013-11 authorizing the Authority to sell small housing projects pursuant to Health and Safety Code Section 33433(c) as the successor to the former Agency's housing functions and assets. The properties meet the definition of a small housing project in that the Housing Authority will only sell the properties to qualified households (including persons or families) of low or G:IHOUSING1Patty Leon\JMMlstaf report\HOUSING AUTHORITYISR-HA-City 33433(c)Public Hearing 43840 Blueberry 75455 Wilflower 4-11-13.doc HA-52 Staff Report Public Hearing APN 634-061-038 and APN 634-062-028 April 11, 2013 Page 3 of 3 moderate incomes. Section 33433(c) requires that a public hearing be held on the proposed sale pursuant to Health and Safety Code Section 33431. Pursuant to Section 33431, notice of a public hearing on the proposed sale of the property was published once a week for two successive weeks in the Desert Sun. When a qualified buyer is identified, the draft Purchase and Sale Agreement ("Agreement") will be modified based on the terms of the sale agreed upon. However, the sales price will not exceed the amounts on the draft Agreements. In addition, and in order to ensure an affordable housing cost, the Housing Authority and/or City will need to provide deferred down-payment assistance loans. The loan terms will be consistent with the program funding requirements of the funding source used for this purpose. The actual amount and funding source of the Housing Authority and/or City assistance loans will vary for each transaction and will depend on the qualifying income and buyer criteria. The silent homebuyer assistance loans for each home will not exceed forty percent (40%) of the respective sales price. Staff recommends that (i) the Housing Authority Board, hold a public hearing on the proposed sale of the properties and approve the sale of the property to qualified households pursuant to the general terms of the Purchase and Sale Agreement presented to the Housing Authority at this meeting and (ii) that both the City Council and Authority Board approve silent homebuyer assistance loans for each home not to exceed forty percent (40%) of the sales price to ensure an affordable housing cost from any available funding source restricted for such purpose. Fiscal Analysis The fiscal impact will be the cost differential from the former Agency's cost of each of the properties to the newly negotiated sales price, the costs of the transaction, and the amount of the assistance loans from the various sources. Each sale will reduce the monthly costs associated with maintaining the real property inventory. Submitted Fin. - •epartm-nt: /� J n t M. Moore, Di ect r of Housing PiRjLecior ofOF_iPance APPROVED 'ALA 1� DENTED pp ov . RED FIVER OTHER A ' ME//44ET G DA -i 4ta'''— — AYES: i-, e .7-04iAPf,toe , r rn;K, n M. Wohlmuth, City Manager/Executive Direct 0ES: OA I ABSENT: re_ l BY HOUSG AUTH 5-0 J��l ABSTAIN: �� O / VERIFIED BY: �)Mg Original on File with City Clerk's Office VERIF1 BY: original oiAY00ENnW,6TDetporMhlglm0�-eH`A-City 33433(c)Public Hearing 43480 Blueberry 75455 Mower 4-11-13.doc RESOLUTION NO. HA - 52 A RESOLUTION OF THE PALM DESERT HOUSING AUTHORITY APPROVING A RESIDENTIAL PURCHASE AND SALE AGREEMENT PURSUANT TO HEALTH AND SAFETY CODE SECTION 33433(c) THE PALM DESERT HOUSING AUTHORITY HEREBY FINDS, DETERMINES, RESOLVES AND ORDERS AS FOLLOWS: Section 1. On July 14, 1994, the former Palm Desert Redevelopment Agency ("Agency") held a public hearing approving the initial sale of the 161 single-family homes located in the Desert Rose Development ("Desert Rose") in the City of Palm Desert to qualifying households of low or moderate income pursuant to Resolution No. 296, and amendments made thereto. Section 2. Pursuant to Health and Safety Code Section 34175(b), on February 1, 2012, all assets, properties, contracts, leases, books and records, buildings, and equipment of the Agency transferred to the control of the Successor Agency to the Palm Desert Redevelopment Agency (the "Successor Agency") by operation of law including housing assets. Section 3. Pursuant to Health and Safety Code Section 34176(b), on February 9, 2012, the City adopted Resolution No. 2012-07 designating the Palm Desert Housing Authority(the"Housing Authority")as the successor housing entity for all housing activities formerly completed by both the Agency and the Housing Authority. Section 4. On October 11, 2012, the Housing Authority Board accepted the housing functions and assets transferred pursuant to Resolution No. HA-47. Section 5. The Housing Authority owns two residential structures located at 43840 Blueberry Lane and 75455 Wildflower Lane in the City of Palm Desert, California (the "Properties"). The Housing Authority proposes to sell the Properties to qualifying person(s) or household(s) of low or moderate income pursuant to the draft purchase and sale agreement(the"Agreement") and Desert Rose Restrictive Covenant and Loan Documents presented to the Housing Authority at this meeting and now on file in the offices of the Housing Authority Secretary and City Clerk of the City of Palm Desert. Section 6. Resolution No. 03-34 of the City Council authorized the Agency to sell or lease a "small housing project" as that term is defined in Health and Safety Code Section 33013, pursuant to Health and Safety Code Section 33433(c). Section 7. By its Resolution No. 2013-11, the City Council confirmed that the authorization for the former Agency to sell small housing projects pursuant to Health and Safety Code Section 33433(c)transferred to the Housing Authority as the successor to the former Agency's housing functions and assets. -1- RESOLUTION NO. HA - 52 Section 8. Following notice duly given, the Housing Authority has held a full and fair public hearing on the sale by the Housing Authority of the Properties pursuant to Health and Safety Code Section 33431. The Housing Authority has made available to the public through the office of the City Clerk a copy of the Agreement prior to the public hearing. Section 9. The Housing Authority hereby finds and determines that the Properties qualify as a "small housing project" as that term is defined in Health and Safety Code 33013. Section 10. The Housing Authority hereby approves the Agreement and the Housing Authority Executive Director ("Executive Director") is hereby authorized and directed, for and in the name and on behalf of the Housing Authority, to finalize, execute and deliver the Agreement in substantially the form on file with the Housing Authority Secretary and the City Clerk and presented at this meeting, with such additions thereto or changes or insertions therein as may be approved by the Executive Director(such approval to be conclusively evidenced by such execution and delivery). Section 11. The officers of the Housing Authority are hereby authorized and directed,jointly and severally, to execute and deliver any and all necessary documents and instruments and to do all things which they may deem necessary or proper in order to effectuate the purposes of this Resolution and the transaction contemplated hereby; and any such actions previously taken by such officers are hereby ratified, confirmed and approved. PASSED, APPROVED AND ADOPTED this 11TH day of APRIL 2013 by the following vote, to wit: AYES: NOES: ABSENT: ABSTAIN: JAN C HARNIK, CHAIRMAN ATTEST: RACHELLE D. KLASSEN, SECRETARY PALM DESERT HOUSING AUTHORITY -2- NOTICE OF A PUBLIC HEARING OF THE CITY OF PALM DESERT AND THE PALM DESERT HOUSING AUTHORITY REGARDING THE PROPOSED APPROVAL OF A RESIDENTIAL PURCHASE AND SALE AGREEMENT NOTICE IS HEREBY GIVEN that the Palm Desert Housing Authority (the "Authority") will hold a Public Hearing to consider the approval of the DRAFT Residential Purchase and Sale Agreements (the "Purchase and Sale Agreements") by and between the Authority, as seller, and a person or family of low or moderate income, as buyer. The Purchase and Sale Agreements pertain to a two (2) single-family residences owned by the Authority located at 43840 Blueberry Lane and 75455 Wildflower Lane, Palm Desert, CA 92211. Said Public Hearing will be held as follows: DATE: Thursday, April 11, 2013 TIME: 4:00 P.M. PLACE: City of Palm Desert Council Chambers City Hall 73-510 Fred Waring Drive Palm Desert, California 92260 A copy of the Purchase and Sale Agreements are available for public inspection and copying at a cost not to exceed the cost of duplication, at the Office of the City Clerk, 73-510 Fred Waring Drive, Palm Desert, California 92260. All interested persons wishing to be heard on the matter may be present and be heard. Any written communications should be addressed to the Authority Secretary, 73-510 Fred Waring Drive, Palm Desert, California 92260. Dated: March 26, 2013 111-4141% Ra elle D. Klassen, Secretary Palm Desert Housing Authority (760) 346-0611 G:1CityCIrk1Glorla Sanchez\LEGAL NOTICESIPH 04112013-43480 Blueberry and 75455 Wlldfower.doc Sanchez, Gloria From: Moeller, Charlene[CMOELLER©palmspri.gannett.com] Sent: Wednesday, March 27, 2013 8:34 AM To: Sanchez, Gloria Subject: RE: Legal Notice-PH 04/11/13 43840 Blueberry Ln&75455 Wildflower Ln • Ad received and will publish on date(s) requested. Charlene Moeller I Media Sales Legal Notice Coordinator The Desert Sun Media Group 750 N. Gene Autry Trail, Palm Springs, CA 92262 t 760.778.4578 I f 760.778.4731 legals_gthedesertsun corn/dowlegals@thedesertsun.com The Coachella Valleys#1 Source in News&Advertising! www.mvdesert.com I twitter facebook This email and any files transmitted with it are confidential and intended for the individual to whom they are addressed. if you have received this email in error, please notify the sender and delete the message from your system From: ssarlchez@cityofpalrndesert.drg [maiito;gsanchezAKityofgalrndesert.org] Sent: Tuesday, March 26, 2013 4:23 PM To: tds-legals Subject: Legal Notice- PH 04/11/13 43840 Blueberry Ln &75455 Wildflower Ln Hi, Charlene! Wondering if I'm too late for Thursday 3/28? PLEASE PUBLISH THE FOLLOWING: NOTICE OF PUBLIC HEARING Notice of Public Hearing of the City of Palm Desert and the Palm Desert Housing Authority Regarding the Proposed Approval of a Residential Purchase and Sale Agreement—43840 Blueberry Lane and 75455 Wildflower Lane, Palm Desert TWICE IN THE DESERT SUN Thursday, March 28, 2013 Thursday,April 4,2013 If you have any questions or require additional information, please call me. P CALIFORNIA CALIFORNIA RESIDENTIAL PURCHASE AGREEMENT ASSOCIATION AND JOINT ESCROW INSTRUCTIONS lip OF RE A L T O R S®' For Use With Single Family Residential Property—Attached or Detached (C.A.R.Form RPA-CA,Revised 4/10) Date March 7, 2013 1. OFFER: A. THIS IS AN OFFER FROM "a qualified buyer of low or, moderate Income" ("Buyer"). B. THE REAL PROPERTY TO BE ACQUIRED is described as 43840 Blueberry Ln, Palm Desert, CA 92211 ,Assessor's Parcel No. 634-061-038 ,situated in Palm Desert ,County of Riverside ,California,("Property"). C. THE PURCHASE PRICE offered is One Hundred Thirty-One Thousand, Nine Hundred Sixty (Dollars$ 131.960.00 ). D. CLOSE OF ESCROW shall occur on 60 days or sooner (date)(or 0 Days After Acceptance). 2. AGENCY: A. DISCLOSURE: Buyer and Seller each acknowledge prior receipt of a "Disclosure Regarding Real Estate Agency Relationships" (C.A.R.Form AD). B. POTENTIALLY COMPETING BUYERS AND SELLERS: Buyer and Seller each acknowledge receipt of a disclosure of the possibility of multiple representation by the Broker representing that principal. This disclosure may be part of a listing agreement, buyer representation agreement or separate document (C.A.R. Form DA). Buyer understands that Broker representing Buyer may also represent other potential buyers, who may consider, make offers on or ultimately acquire the Property. Seller understands that Broker representing Seller may also represent other sellers with competing properties of interest to this Buyer. C. CONFIRMATION:The following agency relationships are hereby confirmed for this transaction: Listing Agent Century 21 Osborne Realty (Print Firm Name)is the agent of(check one): 0 the Seller exclusively;or �� both the Buyer and Seller. Selling Agent Century 21 Osborne Realty (Print Firm Name)(if not the same as the Listing Agent)is the agent of(check one):0 the Buyer exclusively;or 0 the Seller exclusively;or®both the Buyer and Seller. Real Estate Brokers are not parties to the Agreement between Buyer and Seller. 3. FINANCE TERMS:Buyer represents that funds will be good when deposited with Escrow Holder. A. INITIAL DEPOSIT:Deposit shall be in the amount of $ TBD (1) Buyer shall deliver deposit directly to Escrow Holder by personal check, 0 electronic funds transfer,❑ Other within 3 business days after acceptance (or 0 Other ); OR(2)(If checked)0 Buyer has given the deposit by personal check(or 0 to the agent submitting the offer(or to O ), made payable to .The deposit shall be held uncashed until Acceptance and then deposited with Escrow Holder(or 0 into Broker's trust account) within 3 business days after Acceptance(or 0 Other ). B. INCREASED DEPOSIT:Buyer shall deposit with Escrow Holder an increased deposit in the amount of $ within Days After Acceptance,or 0 If a liquidated damages clause is incorporated into this Agreement, Buyer and Seller shall sign a separate liquidated damages clause(C.A.R.Form RID)for any increased deposit at the time it is deposited. C. LOAN(S): (1) FIRST LOAN:in the amount of $ TBD This loan will be conventional financing or, if checked, 0 FHA, 0 VA, ❑Seller (C.A.R. Form SFA), assumed financing(C.A.R.Form PAA), 0 Other .This loan shall be at a fixed rate not to exceed %or,0 an adjustable rate loan with initial rate not to exceed %. Regardless of the type of loan,Buyer shall pay points not to exceed %of the loan amount. (2) ®SECOND LOAN:in the amount of $ TBD This loan will be conventional financing or, if checked, 0 Seller(C.A.R.Form SFA), 0 assumed financing (C.A.R.Form PAA), ®Other See 3.D .This loan shall be at a fixed rate not to exceed %or,0 an adjustable rate loan with initial rate not to exceed %.Regardless of the type of loan, Buyer shall pay points not to exceed %of the loan amount. (3) FHANA:For any FHA or VA loan specified above,Buyer has 17(or❑ )Days After Acceptance to Deliver to Seller written notice (C.A.R. Form FVA) of any lender-required repairs or costs that Buyer requests Seller to pay for or repair. Seller has no obligation to pay for repairs or satisfy lender requirements unless otherwise agreed in writing. D. ADDITIONAL FINANCING TERMS: Palm Desert Housing Authority and City of Palm Desert may give down payment assistance, provided buyer qualifies. E. BALANCE OF PURCHASE PRICE OR DOWN PAYMENT:in the amount of $ 131.960.00 to be deposited with Escrow Holder within sufficient time to close escrow. F. PURCHASE PRICE(TOTAL). $ 131,960.00 Buyer's Initials( )( ) Seller's Initials( )( ) The copyright laws of the United States(Title 17 U.S.Code)forbid the unauthorized reproduction of this form,or any portion thereof,by photocopy machine or any other means,including facsimile or computerized formats. EWAI.ROUSING Copyright©1991-2010,CALIFORNIA ASSOCIATION OF REALTORS®,INC.ALL RIGHTS RESERVED. OPPORTUNITY RPA-CA REVISED 4/10(PAGE 1 OF 8) Reviewed by Date CALIFORNIA RESIDENTIAL PURCHASE AGREEMENT(RPA-CA PAGE 1 OF 8) Agent: John Osborne Phone:(760)921-2121 Fax:(760)922-4387 Prepared using zipForm®software Broker: CENTURY 21 Osborne Realty 41 Orquidia Ct Palm Desert,CA 92260 43840 Blueberry Ln Property Address: Palm Desert, CA 92211 Date: March 7, 2013 G. VERIFICATION OF DOWN PAYMENT AND CLOSING COSTS: Buyer(or Buyer's lender or loan broker pursuant to 3H(1))shall, within 7 (or ❑ ) Days After Acceptance, Deliver to Seller written verification of Buyer's down payment and closing costs. (If checked, 0 verification attached.) H. LOAN TERMS: (1) LOAN APPLICATIONS:Within 7(or 0 ) Days After Acceptance, Buyer shall Deliver to Seller a letter from lender or loan broker stating that,based on a review of Buyer's written application and credit report,Buyer is prequalified or preapproved for any NEW loan specified in 3C above.(If checked,❑ letter attached.) (2) LOAN CONTINGENCY: Buyer shall act diligently and in good faith to obtain the designated loan(s). Obtaining the loan(s)specified above is a contingency of this Agreement unless otherwise agreed in writing.Buyer's contractual obligations to obtain and provide deposit,balance of down payment and closing costs are not contingencies of this Agreement. (3) LOAN CONTINGENCY REMOVAL: (I) Within 17(or 0 )Days After Acceptance,Buyer shall,as specified in paragraph 14,in writing remove the loan contingency or cancel this Agreement; OR(II) (if checked) 0 the loan contingency shall remain in effect until the designated loans are funded. (4) 0 NO LOAN CONTINGENCY(If checked): Obtaining any loan specified above is NOT a contingency of this Agreement. If Buyer does not obtain the loan and as a result Buyer does not purchase the Property,Seller may be entitled to Buyer's deposit or other legal remedies. I. APPRAISAL CONTINGENCY AND REMOVAL:This Agreement is(or,if checked,❑is NOT)contingent upon a written appraisal of the Property by a licensed or certified appraiser at no less than the specified purchase price. If there is a loan contingency, Buyer's removal of the loan contingency shall be deemed removal of this appraisal contingency (or, ❑ if checked,Buyer shall,as specified in paragraph 14B(3),in writing remove the appraisal contingency or cancel this Agreement within 17(or )Days After Acceptance).If there is no loan contingency, Buyer shall,as specified in paragraph 14B(3),in writing remove the appraisal contingency or cancel this Agreement within 17(or Days After Acceptance. J. ❑ALL CASH OFFER(If checked):Buyer shall,within 7(or 0 ) Days After Acceptance, Deliver to Seller written verification of sufficient funds to close this transaction.(If checked, ❑verification attached.) K. BUYER STATED FINANCING: Seller has relied on Buyer's representation of the type of financing specified (including but not limited to, as applicable,amount of down payment,contingent or non contingent loan,or all cash).If Buyer seeks alternate financing,(i)Seller has no obligation to cooperate with Buyer's efforts to obtain such financing, and (ii) Buyer shall also pursue the financing method specified in this Agreement. Buyer's failure to secure alternate financing does not excuse Buyer from the obligation to purchase the Property and close escrow as specified in this Agreement. 4. ALLOCATION OF COSTS(If checked):Unless otherwise specified in writing,this paragraph only determines who is to pay for the inspection,test or service("Report")mentioned;it does not determine who is to pay for any work recommended or identified in the Report. A. INSPECTIONS AND REPORTS: (1) 0 Buyer®Seller shall pay for an inspection and report for wood destroying pests and organisms ("Wood Pest Report") prepared by Sellers Choice a registered structural pest control company. (2) ❑Buyer❑Seller shall pay to have septic or private sewage disposal systems pumped and inspected (3) 0 Buyer 0 Seller shall pay to have domestic wells tested for water potability and productivity (4) 0 Buyer®Seller shall pay for a natural hazard zone disclosure report prepared by First American or Similar (5) 0 Buyer 0 Seller shall pay for the following inspection or report (6) 0 Buyer 0 Seller shall pay for the following inspection or report B. GOVERNMENT REQUIREMENTS AND RETROFIT: (1) 0 Buyer®Seller shall pay for smoke detector installation and/or water heater bracing,if required by Law. Prior to Close Of Escrow,Seller shall provide Buyer written statement(s)of compliance in accordance with state and local Law,unless exempt. (2) 0 Buyer 0 Seller shall pay the cost of compliance with any other minimum mandatory government retrofit standards, inspections and reports if required as a condition of closing escrow under any Law. C. ESCROW AND TITLE: (1) ®Buyer®Seller shall pay escrow fee each to pay his/her own Escrow Holder shall be 7oresite Escrow (2) 0 Buyer /;I Seller shall pay for owner's title insurance policy specified in paragraph 12E Owner's title policy to be issued by First American title (Buyer shall pay for any title insurance policy insuring Buyer's lender,unless otherwise agreed in writing.) D. OTHER COSTS: (1) ❑Buyer®Seller shall pay County transfer tax or fee (2) ❑Buyer❑Seller shall pay City transfer tax or fee (3) 0 Buyer 0 Seller shall pay Homeowner's Association("HOA")transfer fee (4) 0 Buyer®Seller shall pay HOA document preparation fees Related Fees (5) 0 Buyer O Seller shall pay for any private transfer fee (6) 0 Buyer®Seller shall pay the cost,not to exceed$ 350.00 ,of a one-year home warranty plan, issued by American Hone Shield ,with the following optional coverages: Air Conditioner❑Pool/Spa❑Code and Permit upgrade ®Other:Appliances Buyer is informed that home warranty plans have many optional coverages in addition to those listed above. Buyer is advised to investigate these coverages to determine those that may be suitable for Buyer. (7) 0 Buyer❑Seller shall pay for (8) D Buyer❑Seller shall pay for Buyer's Initials( )( ) Seller's Initials( )( A Copyright 01991-2010,CALIFORNIA ASSOCIATION OF REALTORS®,INC. RPA-CA REVISED 4/10(PAGE 2 OF 8) Reviewed by Date EQUAL HOUSING OPPORTUNITY CALIFORNIA RESIDENTIAL PURCHASE AGREEMENT(RPA-CA PAGE 2 OF 8) a qualified bu 43840 Blueberry Ln Property Address: Palm Desert, CA 92211 Date:March 7, 2013 5. CLOSING AND POSSESSION: A. Buyer intends(or 0 does not intend)to occupy the Property as Buyer's primary residence. B. Seller-occupied or vacant property: Possession shall be delivered to Buyer at 5 PM or(❑ 0 AM 0 PM),on the date of Close Of Escrow; ❑on ;or❑no later than Days After Close Of Escrow.If transfer of title and possession do not occur at the same time,Buyer and Seller are advised to:(I)enter into a written occupancy agreement(C.A.R. Form PAA, paragraph 2);and(ii)consult with their insurance and legal advisors. C. Tenant-occupied property: (I)Property shall be vacant at least 5(or 0 )Days Prior to Close Of Escrow,unless otherwise agreed in writing.Note to Seller: If you are unable to deliver Property vacant In accordance with rent control and other applicable Law,you may be In breach of this Agreement. OR(ii)(if checked)❑Tenant to remain In possession.(C.A.R.Form PAA,paragraph 3) D. At Close Of Escrow,(i)Seller assigns to Buyer any assignable warranty rights for items included in the sale,and(ii)Seller shall Deliver to Buyer available Copies of warranties.Brokers cannot and will not determine the assignability of any warranties. E. At Close Of Escrow,unless otherwise agreed in writing,Seller shall provide keys and/or means to operate all locks,mailboxes,security systems, alarms and garage door openers. If Property is a condominium or located in a common interest subdivision, Buyer may be required to pay a deposit to the Homeowners'Association("HOA")to obtain keys to accessible HOA facilities. 6. STATUTORY DISCLOSURES(INCLUDING LEAD-BASED PAINT HAZARD DISCLOSURES)AND CANCELLATION RIGHTS: A. (1) Seller shall,within the time specified in paragraph 14A,Deliver to Buyer,if required by Law:(I)Federal Lead-Based Paint Disclosures(C.A.R. Form FLD)and pamphlet("Lead Disclosures");and(ii)disclosures or notices required by sections 1102 et.seq.and 1103 et.seq.of the Civil Code ("Statutory Disclosures"). Statutory Disclosures include, but are not limited to, a Real Estate Transfer Disclosure Statement("TDS"), Natural Hazard Disclosure Statement ("NHD"), notice or actual knowledge of release of illegal controlled substance, notice of special tax and/or assessments(or,if allowed,substantially equivalent notice regarding the Mello-Roos Community Facilities Act and Improvement Bond Act of 1915)and,if Seller has actual knowledge,of industrial use and military ordinance location(C.A.R.Form SPQ or SSD). (2) Buyer shall,within the time specified in paragraph 14B(1),return Signed Copies of the Statutory and Lead Disclosures to Seller. (3) In the event Seller, prior to Close Of Escrow, becomes aware of adverse conditions materially affecting the Property, or any material inaccuracy in disclosures, information or representations previously provided to Buyer, Seller shall promptly provide a subsequent or amended disclosure or notice,in writing,covering those items. However,a subsequent or amended disclosure shall not be required for conditions and material inaccuracies of which Buyer is otherwise aware,or which are disclosed in reports provided to or obtained by Buyer or ordered and paid for by Buyer. (4) If any disclosure or notice specified in 6A(1),or subsequent or amended disclosure or notice is Delivered to Buyer after the offer is Signed, Buyer shall have the right to cancel this Agreement within 3 Days After Delivery in person,or 5 Days After Delivery by deposit in the mail,by giving written notice of cancellation to Seller or Seller's agent. (5) Note to Buyer and Seller:Waiver of Statutory and Lead Disclosures is prohibited by Law. B. NATURAL AND ENVIRONMENTAL HAZARDS:Within the time specified in paragraph 14A,Seller shall,if required by Law:(i)Deliver to Buyer earthquake guides(and questionnaire)and environmental hazards booklet;(ii)even if exempt from the obligation to provide a NHD,disclose if the Property is located in a Special Flood Hazard Area; Potential Flooding (Inundation) Area; Very High Fire Hazard Zone; State Fire Responsibility Area; Earthquake Fault Zone;Seismic Hazard Zone;and (iii)disclose any other zone as required by Law and provide any other information required for those zones. C. WITHHOLDING TAXES: Within the time specified in paragraph 14A, to avoid required withholding, Seller shall Deliver to Buyer or qualified substitute,an affidavit sufficient to comply with federal(FIRPTA)and California withholding Law,(C.A.R.Form AS or QS). D. MEGAN'S LAW DATABASE DISCLOSURE: Notice: Pursuant to Section 290.46 of the Penal Code,information about specified registered sex offenders is made available to the public via an Internet Web site maintained by the Department of Justice at www.meganslaw.ca.gov.Depending on an offender's criminal history,this information will include either the address at which the offender resides or the community of residence and ZIP Code in which he or she resides. (Neither Seller nor Brokers are required to check this website. If Buyer wants further information, Broker recommends that Buyer obtain information from this website during Buyer's inspection contingency period. Brokers do not have expertise in this area.) 7. CONDOMINIUM/PLANNED DEVELOPMENT DISCLOSURES: A. SELLER HAS: 7 (or 0 )Days After Acceptance to disclose to Buyer whether the Property is a condominium,or is located in a planned development or other common interest subdivision(C.A.R.Form SPQ or SSD). B. If the Property is a condominium or is located in a planned development or other common interest subdivision,Seller has 3(or 0 Days After Acceptance to request from the HOA(C.A.R.Form HOA):(i)Copies of any documents required by Law;(ii)disclosure of any pending or anticipated claim or litigation by or against the HOA; (iii)a statement containing the location and number of designated parking and storage spaces;(Iv)Copies of the most recent 12 months of HOA minutes for regular and special meetings;and(v)the names and contact information of all HOAs goveming the Property(collectively,"Cl Disclosures").Seller shall itemize and Deliver to Buyer all CI Disclosures received from the HOA and any CI Disclosures in Seller's possession. Buyer's approval of CI Disclosures is a contingency of this Agreement as specified in paragraph 14B(3). 8. ITEMS INCLUDED IN AND EXCLUDED FROM PURCHASE PRICE: A. NOTE TO BUYER AND SELLER:Items listed as included or excluded in the MLS,flyers or marketing materials are not included in the purchase price or excluded from the sale unless specified in 88 or C. B. ITEMS INCLUDED IN SALE: (1) All EXISTING fixtures and fittings that are attached to the Property; (2) EXISTING electrical, mechanical, lighting, plumbing and heating fixtures, ceiling fans,fireplace inserts, gas logs and grates,solar systems, built-in appliances, window and door screens, awnings, shutters,window coverings, attached floor coverings, television antennas, satellite dishes, private integrated telephone systems, air coolers/conditioners, pool/spa equipment, garage door openers/remote controls, mailbox, in-ground landscaping,trees/shrubs,water softeners,water purifiers,security systems/alarms;(If checked®stove(s), 0 refrigerator(s);and (3) The following additional items: $olar System if applicable (4) Seller represents that all items included in the purchase price,unless otherwise specified,are owned by Seller. (5) All items included shall be transferred free of liens and without Seller warranty. C. ITEMS EXCLUDED FROM SALE:Unless otherwise specified,audio and video components(such as flat screen TVs and speakers)are excluded if any such item is not itself attached to the Property,even if a bracket or other mechanism attached to the component is attached to the Property; and Buyer's Initials( )( ) Seller's Initials( )( ) A Copyright©1991-2010,CALIFORNIA ASSOCIATION OF REALTORS®,INC. RPA-CA REVISED 4/10(PAGE 3 OF 8) Reviewed by Date EOMHOare OPPORTUIRTY CALIFORNIA RESIDENTIAL PURCHASE AGREEMENT(RPA-CA PAGE 3 OF 8) a qualified bu 43840 Blueberry Lu Property Address: Palm Desert, CA 92211 Date: March 7, 2013 9. CONDITION OF PROPERTY: Unless otherwise agreed:(i)the Property is sold(a)in its PRESENT physical("as-is")condition as of the date of Acceptance and(b)subject to Buyer's Investigation rights;(II)the Property,including pool,spa,landscaping and grounds,is to be maintained in substantially the same condition as on the date of Acceptance;and(iii)all debris and personal property not included in the sale shall be removed by Seller by Close Of Escrow. A. Seller shall,within the time specified in paragraph 14A,DISCLOSE KNOWN MATERIAL FACTS AND DEFECTS affecting the Property,including known insurance claims within the past five years,and make any and all other disclosures required by law. B. Buyer has the right to inspect the Property and,as specified in paragraph 14B,based upon information discovered in those inspections:(i)cancel this Agreement;or(ii)request that Seller make Repairs or take other action. C. Buyer is strongly advised to conduct Investigations of the entire Property in order to determine its present condition.Seller may not be aware of all defects affecting the Property or other factors that Buyer considers important. Property improvements may not be built according to code,in compliance with current Law,or have had permits issued. 10. BUYER'S INVESTIGATION OF PROPERTY AND MATTERS AFFECTING PROPERTY: A. Buyer's acceptance of the condition of, and any other matter affecting the Property, is a contingency of this Agreement as specified in this paragraph and paragraph 14B.Within the time specified in paragraph 14B(1), Buyer shall have the right, at Buyer's expense unless otherwise agreed,to conduct inspections,investigations,tests,surveys and other studies("Buyer Investigations"),including,but not limited to,the right to: (i) inspect for lead-based paint and other lead-based paint hazards; (ii) inspect for wood destroying pests and organisms; (iii) review the registered sex offender database;(iv)confirm the insurability of Buyer and the Property;and(v)satisfy Buyer as to any matter specified in the attached Buyer's Inspection Advisory(C.A.R.Form BIA).Without Seller's prior written consent,Buyer shall neither make nor cause to be made:(i) invasive or destructive Buyer Investigations;or(ii)inspections by any governmental building or zoning inspector or government employee,unless required by Law. B. Seller shall make the Property available for all Buyer Investigations. Buyer shall(i)as specified in paragraph 14B,complete Buyer Investigations and,either remove the contingency or cancel this Agreement,and(ii)give Seller,at no cost,complete Copies of all Investigation reports obtained by Buyer,which obligation shall survive the termination of this Agreement. C. Seller shall have water, gas, electricity and all operable pilot lights on for Buyer's Investigations and through the date possession is made available to Buyer. D. Buyer indemnity and Seller protection for entry upon property:Buyer shall:(i)keep the Property free and clear of liens;(ii)repair all damage arising from Buyer Investigations;and(iii)indemnify and hold Seller harmless from all resulting liability,claims,demands,damages and costs of Buyer's investigations. Buyer shall carry, or Buyer shall require anyone acting on Buyer's behalf to carry, policies of liability, workers' compensation and other applicable insurance,defending and protecting Seller from liability for any injuries to persons or property occurring during any Buyer Investigations or work done on the Property at Buyer's direction prior to Close Of Escrow.Seller is advised that certain protections may be afforded Seller by recording a "Notice of Non-responsibility" (C.A.R. Form NNR)for Buyer Investigations and work done on the Property at Buyer's direction.Buyer's obligations under this paragraph shall survive the termination or cancellation of this Agreement and Close of Escrow. 11. SELLER DISCLOSURES;ADDENDA;ADVISORIES;OTHER TERMS: A. Seller Disclosures(if checked):Seller shall,within the time specified in paragraph 14A,complete and provide Buyer with a: ®Seller Property Questionnaire(C.A.R.Form SPQ) OR ®Supplemental Contractual and Statutory Disclosure(CAR.Form SSD) B. Addenda(if checked): ®Addendum# 1 (CAR.Form ADM) ®Wood Destroying Pest Inspection and Allocation of Cost Addendum(C.A.R.Form WPA) ❑Purchase Agreement Addendum(C.A.R Form PAA) 0 Septic,Well and Property Monument Addendum(C.A.R.Form SWPI) ❑Short Sale Addendum(C.A.R.Form SSA) 0 Other C. Advisories(if checked): 0 Buyer's Inspection Advisory(CAR.Form BIA) ❑Probate Advisory(CAR.Form PAK) ®Statewide Buyer and Seller Advisory(C.A.R.Form SBSA) ❑Trust Advisory(CAR.Form TA) ❑REO Advisory(C.A.R.Form REO) D. Other Terms: 12. TITLE AND VESTING: A. Within the time specified in paragraph 14, Buyer shall be provided a current preliminary title report,which shall include a search of the General Index. Seller shall within 7 Days After Acceptance give Escrow Holder a completed Statement of Information. The preliminary report is only an offer by the title insurer to issue a policy of title insurance and may not contain every item affecting title. Buyer's review of the preliminary report and any other matters which may affect title are a contingency of this Agreement as specified in paragraph 14B. B. Title is taken in its present condition subject to all encumbrances, easements, covenants, conditions, restrictions, rights and other matters, whether of record or not,as of the date of Acceptance except:(I)monetary liens of record unless Buyer is assuming those obligations or taking the Property subject to those obligations;and(ii)those matters which Seller has agreed to remove in writing. C. Within the time specified in paragraph 14A,Seller has a duty to disclose to Buyer all matters known to Seller affecting title,whether of record or not. D. At Close Of Escrow, Buyer shall receive a grant deed conveying title (or, for stock cooperative or long-term lease, an assignment of stock certificate or of Seller's leasehold interest), including oil, mineral and water rights if currently owned by Seller. Title shall vest as designated in Buyer's supplemental escrow instructions.THE MANNER OF TAKING TITLE MAY HAVE SIGNIFICANT LEGAL AND TAX CONSEQUENCES. CONSULT AN APPROPRIATE PROFESSIONAL. E. Buyer shall receive a CLTA/ALTA Homeowner's Policy of Title Insurance.A title company,at Buyer's request,can provide information about the availability, desirability, coverage, survey requirements, and cost of various title insurance coverages and endorsements. If Buyer desires title coverage other than that required by this paragraph,Buyer shall instruct Escrow Holder in writing and pay any increase in cost. 13. SALE OF BUYER'S PROPERTY: A. This Agreement is NOT contingent upon the sale of any property owned by Buyer. OR B. 0(If checked):The attached addendum(C.A.R. Form COP)regarding the contingency for the sale of property owned by Buyer is incorporated into this Agreement. Buyer's Initials( )( ) Seller's Initials( )( ) A Copyright©1991-2010,CALIFORNIA ASSOCIATION OF REALTORS®,INC. RPA-CA REVISED 4/10(PAGE 4 OF 8) Reviewed by Date or°vo HOUSING CALIFORNIA RESIDENTIAL PURCHASE AGREEMENT(RPA-CA PAGE 4 OF 8) a qualified bu 43840 Blueberry La Property Address: Palm Desert, CA 92211 Date:March 7, 2013 14. TIME PERIODS; REMOVAL OF CONTINGENCIES; CANCELLATION RIGHTS: The following time periods may only be extended, altered, modified or changed by mutual written agreement.Any removal of contingencies or cancellation under this paragraph by either Buyer or Seller must be exercised in good faith and in writing(C.A.R.Form CR or CC). A. SELLER HAS: 7 (or® 15 )Days After Acceptance to Deliver to Buyer all Reports,disclosures and information for which Seller is responsible under paragraphs 4,6A,B and C,7A,9A,11A and B,and 12.Buyer may give Seller a Notice to Seller to Perform(C.A.R.Form NSP) if Seller has not Delivered the items within the time specified. B. (1) BUYER HAS: 17(or 0 )Days After Acceptance,unless otherwise agreed in writing,to: (i) complete all Buyer Investigations;approve all disclosures,reports and other applicable information,which Buyer receives from Seller;and approve all other matters affecting the Property;and (II) Deliver to Seller Signed Copies of Statutory and Lead Disclosures Delivered by Seller in accordance with paragraph 6A. (2) Within the time specified in 14B(1),Buyer may request that Seller make repairs or take any other action regarding the Property(C.A.R.Form RR).Seller has no obligation to agree to or respond to Buyer's requests. (3) Within the time specified in 14B(1)(or as otherwise specified in this Agreement), Buyer shall Deliver to Seller either(i)a removal of the applicable contingency(C.A.R. Form CR), or(ii)a cancellation (C.A.R. Form CC)of this Agreement based upon a contingency or Seller's failure to Deliver the specified items.However,if any report,disclosure or information for which Seller is responsible is not Delivered within the time specified in 14A,then Buyer has 5(or CI )Days After Delivery of any such items,or the time specified in 14B(1),whichever is later,to Deliver to Seller a removal of the applicable contingency or cancellation of this Agreement. (4) Continuation of Contingency:Even after the end of the time specified in 14B(1)and before Seller cancels this Agreement,if at all,pursuant to 14C, Buyer retains the right to either(i)in writing remove remaining contingencies, or(ii)cancel this Agreement based upon a remaining contingency or Seller's failure to Deliver the specified terms. Once Buyer's written removal of all contingencies is Delivered to Seller, Seller may not cancel this Agreement pursuant to 14C(1). C. SELLER RIGHT TO CANCEL: (1) Seller right to Cancel; Buyer Contingencies: If, within time specified in this Agreement, Buyer does not, in writing, Deliver to Seller a removal of the applicable contingency or cancellation of this Agreement then Seller,after first Delivering to Buyer a Notice to Buyer to Perform (C.A.R.Form NBP)may cancel this Agreement.In such event,Seller shall authorize return of Buyer's deposit. (2) Seller right to Cancel; Buyer Contract Obligations: Seller,after first Delivering to Buyer a NBP may cancel this Agreement for any of the following reasons:(I)if Buyer fails to deposit funds as required by 3A or 3B;(II)if the funds deposited pursuant to 3A or 3B are not good when deposited; (iii)if Buyer fails to Deliver a notice of FHA or VA costs or terms as required by 3C(3)(CAR. Form FVA); (iv)if Buyer fails to Deliver a letter as required by 3H;(v)if Buyer fails to Deliver verification as required by 3G or 3J;(v1)if Seller reasonably disapproves of the verification provided by 3G or 3J;(vii)if Buyer fails to retum Statutory and Lead Disclosures as required by paragraph 6A(2);or(vili)if Buyer fails to sign or initial a separate liquidated damage form for an increased deposit as required by paragraphs 3B and 25.In such event,Seller shall authorize return of Buyer's deposit. (3) Notice To Buyer To Perform:The NBP shall:(i)be in writing;(ii)be signed by Seller;and(iii)give Buyer at least 2(or 0 )Days After Delivery(or until the time specified in the applicable paragraph,whichever occurs last)to take the applicable action.A NBP may not be Delivered any earlier than 2 Days Prior to the expiration of the applicable time for Buyer to remove a contingency or cancel this Agreement or meet an obligation specified in 14C(2). D. EFFECT OF BUYER'S REMOVAL OF CONTINGENCIES: If Buyer removes,in writing,any contingency or cancellation rights,unless otherwise specified in a separate written agreement between Buyer and Seller,Buyer shall with regard to that contingency or cancellation right conclusively be deemed to have:(1)completed all Buyer Investigations,and review of reports and other applicable information and disclosures;(ii)elected to proceed with the transaction;and(iii)assumed all liability,responsibility and expense for Repairs or corrections or for inability to obtain financing. E. CLOSE OF ESCROW: Before Seller or Buyer may cancel this Agreement for failure of the other party to close escrow pursuant to this Agreement,Seller or Buyer must first give the other a demand to close escrow(C.A.R.Form DCE). F. EFFECT OF CANCELLATION ON DEPOSITS: If Buyer or Seller gives written notice of cancellation pursuant to rights duly exercised under the terms of this Agreement, Buyer and Seller agree to Sign mutual instructions to cancel the sale and escrow and release deposits, if any,to the party entitled to the funds, less fees and costs incurred by that party. Fees and costs may be payable to service providers and vendors for services and products provided during escrow. Release of funds will require mutual Signed release instructions from Buyer and Seller, judicial decision or arbitration award. A Buyer or Seller may be subject to a civil penalty of up to $1,000 for refusal to sign such instructions if no good faith dispute exists as to who is entitled to the deposited funds(Civil Code§1057.3). 15. REPAIRS: Repairs shall be completed prior to final verification of condition unless otherwise agreed in writing. Repairs to be performed at Seller's expense may be performed by Seller or through others, provided that the work complies with applicable Law, including governmental permit, inspection and approval requirements.Repairs shall be performed in a good,skillful manner with materials of quality and appearance comparable to existing materials. It is understood that exact restoration of appearance or cosmetic items following all Repairs may not be possible. Seller shall:(I) obtain receipts for Repairs performed by others; (ii) prepare a written statement indicating the Repairs performed by Seller and the date of such Repairs;and(iii)provide Copies of receipts and statements to Buyer prior to final verification of condition. 16. FINAL VERIFICATION OF CONDITION:Buyer shall have the right to make a final inspection of the Property within 5(or )Days Prior to Close Of Escrow, NOT AS A CONTINGENCY OF THE SALE, but solely to confirm: (i)the Property is maintained pursuant to paragraph 9; (ii) Repairs have been completed as agreed;and(iii)Seller has complied with Seller's other obligations under this Agreement(C.A.R.Form VP). 17. PRORATIONS OF PROPERTY TAXES AND OTHER ITEMS:Unless otherwise agreed in writing,the following items shall be PAID CURRENT and prorated between Buyer and Seller as of Close Of Escrow:real property taxes and assessments,interest,rents,HOA regular,special,and emergency dues and assessments imposed prior to Close Of Escrow, premiums on insurance assumed by Buyer, payments on bonds and assessments assumed by Buyer,and payments on Mello-Roos and other Special Assessment District bonds and assessments that are a current lien.The following items shall be assumed by Buyer WITHOUT CREDIT toward the purchase price: prorated payments on Mello-Roos and other Special Assessment District bonds and assessments and HOA special assessments that are a current lien but not yet due. Property will be reassessed upon change of ownership.Any supplemental tax bills shall be paid as follows: (I)for periods after Close Of Escrow,by Buyer;and(II)for periods prior to Close Of Escrow,by Seller(see C.A.R.Form SPT or SBSA for further information).TAX BILLS ISSUED AFTER CLOSE OF ESCROW SHALL BE HANDLED DIRECTLY BETWEEN BUYER AND SELLER.Prorations shall be made based on a 30-day month. Buyer's Initials( )( ) Seller's Initials( )( ) A Copyright©1991-2010,CALIFORNIA ASSOCIATION OF REALTORS®,INC. RPA-CA REVISED 4/10(PAGE 5 OF 8) Reviewed by Date 07a 0 TU HOUSING CALIFORNIA RESIDENTIAL PURCHASE AGREEMENT(RPA-CA PAGE 5 OF 8) a qualified bu 43840 Blueberry Ln Property Address: Palm Desert, CA 92211 Date:March 7, 2013 18. SELECTION OF SERVICE PROVIDERS: Brokers do not guarantee the performance of any vendors, service or product providers ("Providers"), whether referred by Broker or selected by Buyer,Seller or other person.Buyer and Seller may select ANY Providers of their own choosing. 19. MULTIPLE LISTING SERVICE("MLS"):Brokers are authorized to report to the MLS a pending sale and,upon Close Of Escrow,the sales price and other terms of this transaction shall be provided to the MLS to be published and disseminated to persons and entities authorized to use the information on terms approved by the MLS. 20. EQUAL HOUSING OPPORTUNITY:The Property is sold in compliance with federal,state and local anti-discrimination Laws. 21. ATTORNEY FEES: In any action, proceeding, or arbitration between Buyer and Seller arising out of this Agreement, the prevailing Buyer or Seller shall be entitled to reasonable attorney fees and costs from the non-prevailing Buyer or Seller,except as provided in paragraph 26A. 22. DEFINITIONS:As used in this Agreement: A. "Acceptance"means the time the offer or final counter offer is accepted in writing by a party and is delivered to and personally received by the other party or that party's authorized agent in accordance with the terms of this offer or a final counter offer. B. "C.A.R.Form"means the specific form referenced or another comparable form agreed to by the parties. C. "Close Of Escrow"means the date the grant deed,or other evidence of transfer of title,is recorded. D. "Copy"means copy by any means including photocopy,NCR,facsimile and electronic. E. "Days"means calendar days.However,After Acceptance,the last Day for performance of any act required by this Agreement(including Close Of Escrow)shall not include any Saturday,Sunday,or legal holiday and shall instead be the next Day. F. "Days After"means the specified number of calendar days after the occurrence of the event specified, not counting the calendar date on which the specified event occurs,and ending at 11:59PM on the final day. G. "Days Prior"means the specified number of calendar days before the occurrence of the event specified,not counting the calendar date on which the specified event is scheduled to occur. H. "Deliver","Delivered"or"Delivery",regardless of the method used(i.e.messenger,mail,email,fax,other),means and shall be effective upon (i)personal receipt by Buyer or Seller or the individual Real Estate Licensee for that principal as specified in paragraph D of the section titled Real Estate Brokers on page 8;OR(ii)if checked, 0 per the attached addendum(C.A.R.Form RDN). I. "Electronic Copy"or"Electronic Signature"means,as applicable,an electronic copy or signature complying with California Law. Buyer and Seller agree that electronic means will not be used by either party to modify or alter the content or integrity of this Agreement without the knowledge and consent of the other party. J. "Law"means any law,code,statute,ordinance,regulation,rule or order,which is adopted by a controlling city,county,state or federal legislative, judicial or executive body or agency. K. "Repairs"means any repairs(including pest control),alterations,replacements,modifications or retrofitting of the Property provided for under this Agreement. L. "Signed"means either a handwritten or electronic signature on an original document,Copy or any counterpart. 23. BROKER COMPENSATION: Seller or Buyer, or both, as applicable, agrees to pay compensation to Broker as specified in a separate written agreement between Broker and that Seller or Buyer. Compensation is payable upon Close Of Escrow, or if escrow does not close, as otherwise specified in the agreement between Broker and that Seller or Buyer. 24.JOINT ESCROW INSTRUCTIONS TO ESCROW HOLDER: A. The following paragraphs,or applicable portions thereof,of this Agreement constitute the joint escrow instructions of Buyer and Seller to Escrow Holder,which Escrow Holder is to use along with any related counter offers and addenda,and any additional mutual instructions to close the escrow:1,3,4,6C,11 B and D, 12, 13B,14F, 17,22,23,24,28,30,and paragraph D of the section titled Real Estate Brokers on page 8.If a Copy of the separate compensation agreement(s)provided for in paragraph 23,or paragraph D of the section titled Real Estate Brokers on page 8 is deposited with Escrow Holder by Broker, Escrow Holder shall accept such agreement(s)and pay out of Buyer's or Seller's funds,or both, as applicable, the respective Broker's compensation provided for in such agreement(s).The terms and conditions of this Agreement not specifically referenced above, in the specified paragraphs are additional matters for the information of Escrow Holder, but about which Escrow Holder need not be concerned. Buyer and Seller will receive Escrow Holder's general provisions directly from Escrow Holder and will execute such provisions upon Escrow Holder's request.To the extent the general provisions are inconsistent or conflict with this Agreement,the general provisions will control as to the duties and obligations of Escrow Holder only.Buyer and Seller will execute additional instructions,documents and forms provided by Escrow Holder that are reasonably necessary to close the escrow. B. A Copy of this Agreement shall be delivered to Escrow Holder within 3 business days after Acceptance(or 0 ).Escrow Holder shall provide Seller's Statement of Information to Title company when received from Seller.Buyer and Seller authorize Escrow Holder to accept and rely on Copies and Signatures as defined in this Agreement as originals,to open escrow and for other purposes of escrow.The validity of this Agreement as between Buyer and Seller is not affected by whether or when Escrow Holder Signs this Agreement. C. Brokers are a party to the escrow for the sole purpose of compensation pursuant to paragraphs 23 and paragraph D of the section titled Real Estate Brokers on page 8.Buyer and Seller irrevocably assign to Brokers compensation specified in paragraphs 23,respectively,and irrevocably instruct Escrow Holder to disburse those funds to Brokers at Close Of Escrow or pursuant to any other mutually executed cancellation agreement. Compensation instructions can be amended or revoked only with the written consent of Brokers.Buyer and Seller shall release and hold harmless Escrow Holder from any liability resulting from Escrow Holder's payment to Broker(s)of compensation pursuant to this Agreement.Escrow Holder shall immediately notify Brokers:(i)if Buyer's initial or any additional deposit is not made pursuant to this Agreement, or is not good at time of deposit with Escrow Holder;or(ii)if either Buyer or Seller instruct Escrow Holder to cancel escrow. D. A Copy of any amendment that affects any paragraph of this Agreement for which Escrow Holder is responsible shall be delivered to Escrow Holder within 2 business days after mutual execution of the amendment. Buyer's Initials( )( ) Seller's Initials( )( ) A Copyright®1991-2010,CALIFORNIA ASSOCIATION OF REALTORS®,INC. RPA-CA REVISED 4110(PAGE 6 OF 8)Print Date Reviewed by Date HURL U HOUSNG CALIFORNIA RESIDENTIAL PURCHASE AGREEMENT(RPA-CA PAGE 6 OF 8) a qualified bu 43840 Blueberry Ln Property Address: Palm Desert, CA 92211 Date:March 7, 2013 25.LIQUIDATED DAMAGES: If Buyer fails to complete this purchase because of Buyer's default, Seller shall retain, as liquidated damages,the deposit actually paid.If the Property is a dwelling with no more than four units,one of which Buyer intends to occupy,then the amount retained shall be no more than 3%of the purchase price.Any excess shall be returned to Buyer. Release of funds will require mutual, Signed release instructions from both Buyer and Seller,judicial decision or arbitration award. AT TIME OF THE INCREASED DEPOSIT BUYER AND SELLER SHALL SIGN A SEPARATE LIQUIDATED DAMAGES PROVISION FOR ANY INCREASED DEPOSIT.(C.A.R.FORM RID). Buyer's Initials / Seller's Initials / 26. DISPUTE RESOLUTION: A. MEDIATION: Buyer and Seller agree to mediate any dispute or claim arising between them out of this Agreement, or any resulting transaction, before resorting to arbitration or court action.Buyer and Seller also agree to mediate any disputes or claims with Broker(s),who,in writing, agree to such mediation prior to,or within a reasonable time after,the dispute or claim is presented to the Broker.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(i)commences an action without first attempting to resolve the matter through mediation,or(ii)before commencement of an action,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.Exclusions from this mediation agreement are specified in paragraph 26C. B. ARBITRATION OF DISPUTES: Buyer and Seller agree that any dispute or claim in Law or equity arising between them out of this Agreement or any resulting transaction,which is not settled through mediation,shall be decided by neutral, binding arbitration. Buyer and Seller also agree to arbitrate any disputes or claims with Broker(s),who, in writing,agree to such arbitration prior to, or within a reasonable time after, the dispute or claim is presented to the Broker.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.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 3 of the Code of Civil Procedure.Judgment upon the award of the arbitrator(s)may be entered into any court having jurisdiction. Enforcement of this agreement to arbitrate shall be governed by the Federal Arbitration Act. Exclusions from this arbitration agreement are specified in paragraph 26C. "NOTICE: BY INITIALING IN THE SPACE BELOW YOU ARE AGREEING TO HAVE ANY DISPUTE ARISING OUT OF THE MATTERS INCLUDED IN THE 'ARBITRATION OF DISPUTES'PROVISION DECIDED BY NEUTRAL ARBITRATION AS PROVIDED BY CALIFORNIA LAW AND YOU ARE GIVING UP ANY RIGHTS YOU MIGHT POSSESS TO HAVE THE DISPUTE LITIGATED IN A COURT OR JURY TRIAL. BY INITIALING IN THE SPACE BELOW YOU ARE GIVING UP YOUR JUDICIAL RIGHTS TO DISCOVERY AND APPEAL, UNLESS THOSE RIGHTS ARE SPECIFICALLY INCLUDED IN THE 'ARBITRATION OF DISPUTES' PROVISION. IF YOU REFUSE TO SUBMIT TO ARBITRATION AFTER AGREEING TO THIS PROVISION,YOU MAY BE COMPELLED TO ARBITRATE UNDER THE AUTHORITY OF THE CALIFORNIA CODE OF CIVIL PROCEDURE,YOUR AGREEMENT TO THIS ARBITRATION PROVISION IS VOLUNTARY." "WE HAVE READ AND UNDERSTAND THE FOREGOING AND AGREE TO SUBMIT DISPUTES ARISING OUT OF THE MATTERS INCLUDED IN THE'ARBITRATION OF DISPUTES'PROVISION TO NEUTRAL ARBITRATION." Buyer's Initials / Seller's Initials / C. ADDITIONAL MEDIATION AND ARBITRATION TERMS: (1) EXCLUSIONS:The following matters shall be excluded from mediation and arbitration: (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 a mechanic's lien;and(iv)any matter that is within the jurisdiction of a probate, small claims or bankruptcy court. The filing of a court action to enable the recording of a notice of pending action, for order of attachment, receivership, injunction, or other provisional remedies, shall not constitute a waiver or violation of the mediation and arbitration provisions. (2) BROKERS:Brokers shall not be obligated or compelled to mediate or arbitrate unless they agree to do so in writing.Any Broker(s) participating in mediation or arbitration shall not be deemed a party to the Agreement. 27.TERMS AND CONDITIONS OF OFFER: This is an offer to purchase the Property on the above terms and conditions. The liquidated damages paragraph or the arbitration of disputes paragraph is incorporated in this Agreement if initialed by all parties or if incorporated by mutual agreement in a counter offer or addendum. If at least one but not all parties initial such paragraph(s), a counter offer is required until agreement is reached. Seller has the right to continue to offer the Property for sale and to accept any other offer at any time prior to notification of Acceptance.If this offer is accepted and Buyer subsequently defaults, Buyer may be responsible for payment of Brokers' compensation. This Agreement and any supplement, addendum or modification, including any Copy,may be Signed in two or more counterparts,all of which shall constitute one and the same writing. 28. 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.Except as otherwise specified,this Agreement shall be interpreted and disputes shall be resolved in accordance with the laws of the State of California. Neither this Agreement nor any provision in it may be extended,amended,modified,altered or changed,except in writing Signed by Buyer and Seller. Buyer's Initials( )( ) Seller's Initials( )( ) Copyright©1991-2010,CALIFORNIA ASSOCIATION OF REALTORS®,INC. RPA-CA REVISED 4/10(PAGE 7 OF 8) Reviewed by Date OP EQUAL HOUiUNIING CALIFORNIA RESIDENTIAL PURCHASE AGREEMENT(RPA-CA PAGE 7 OF 8) a qualified bu 43840 Blueberry Ln Property Address: Palm Desert, CA 92211 Date:March 7, 2013 29. EXPIRATION OF OFFER:This offer shall be deemed revoked and the deposit shall be returned unless the offer is Signed by Seller and a Copy of the Signed offer is personally received by Buyer,or by ,who is authorized to receive it, by 5:00 PM on the third Day after this offer is signed by Buyer (or, if checked,n by ❑AM❑PM,on (crate)). Buyer has read and acknowledges receipt of a Copy of the offer and agrees to the above confirmation of agency relationships. Date Date BUYER BUYER "a qualified buyer of low or moderate Income" (Print name) (Print name) (Address) ❑Additional Signature Addendum attached(C.A.R.Form ASA). 30. ACCEPTANCE OF OFFER:Seller warrants that Seller is the owner of the Property,or has the authority to execute this Agreement.Seller accepts the above offer,agrees to sell the Property on the above terms and conditions,and agrees to the above confirmation of agency relationships. Seller has read and acknowledges receipt of a Copy of this Agreement,and authorizes Broker to Deliver a Signed Copy to Buyer. ❑ (If checked)SUBJECT TO ATTACHED COUNTER OFFER(C.A.R.Form CO)DATED: Date Date SELLER SELLER Palm Desert Housa.na Authority (Print name) (Print name) (Address) ❑Additional Signature Addendum attached(C.A.R.Form ASA). ( / ) CONFIRMATION OF ACCEPTANCE: A Copy of Signed Acceptance was personally received by Buyer or Buyer's authorized (Initials) agent on(date) at 0 AM 0 PM.A binding Agreement is created when a Copy of Signed Acceptance is personally received by Buyer or Buyer's authorized agent whether or not confirmed in this document.Completion of this confirmation is not legally required in order to create a binding Agreement.It is solely intended to evidence the date that Confirmation of Acceptance has occurred. REAL ESTATE BROKERS: A. Real Estate Brokers are not parties to the Agreement between Buyer and Seller. B. Agency relationships are confirmed as stated in paragraph 2. C. If specified in paragraph 3A(2),Agent who submitted the offer for Buyer acknowledges receipt of deposit. D. COOPERATING BROKER COMPENSATION: Listing Broker agrees to pay Cooperating Broker(Selling Firm)and Cooperating Broker agrees to accept,out of Listing Broker's proceeds in escrow: (i)the amount specified in the MLS, provided Cooperating Broker is a Participant of the MLS in which the Property is offered for sale or a reciprocal MLS;or(ii)0(if checked)the amount specified in a separate written agreement(C.A.R. Form CBC)between Listing Broker and Cooperating Broker.Declaration of License and Tax(C.A.R.Form DLT)may be used to document that tax reporting will be required or that an exemption exists. Real Estate Broker(Selling Firm) Century 21 Osborne Realty DRE Lic.#01312235 By John Osborne DRE Lic.#00852775 Date Address 41 Orquidia Ct City Palm Desert State CA Zip 92260 Telephone Fax (7601922-4387 E-mail John.osborneRcentury2l.cow Real Estate Broker(Listing Firm) Century 21 Osborne Realty DRE Lic.#01312235 By John Osborn$, ORE Lic.#00852775 Date Address 41 Orquidia Ct City Palm Desert State CA Zip 92260 Telephone Fax (760)922-4387 E-mail John.osborneiacentury21.corn ESCROW HOLDER ACKNOWLEDGMENT: Escrow Holder acknowledges receipt of a Copy of this Agreement,(if checked,❑a deposit in the amount of$ ), counter offer numbered , 0 Seller's Statement of Information and an OtherAddendum #1 ,and agrees to act as Escrow Holder subject to paragraph 24 of this Agreement,any supplemental escrow instructions and the terms of Escrow Holder's general provisions if any. Escrow Holder is advised that the date of Confirmation of Acceptance of the Agreement as between Buyer and Seller is Escrow Holder Foresi to Escrow Escrow# By Esther Lopez Date Address Phone/Fax/E-mail Escrow Holder is licensed by the California Department of❑ Corporations,0 Insurance,0 Real Estate. License # PRESENTATION OF OFFER:( )Listing Broker presented this offer to Seller on (date). Broker or Designee Initials REJECTION OF OFFER:( )( )No counter offer is being made.This offer was rejected by Seller on (date). Seller's Initials THIS FORM HAS BEEN APPROVED BY THE CALIFORNIA ASSOCIATION OF REALTORS®(CAR.).NO REPRESENTATION IS MADE AS TO THE LEGAL VALIDITY OR 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 REALTOR®.REALTOR®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 Distributed by: REAL ESTATE BUSINESS SERVICES,INC. Reviewed by A a subsidiary of the California Association of REALTORS® 525 South Virgil Avenue,Los Angeles,California 90020 Broker or Designee Date cP o HOMING UNITY REVISION DATE 4/10 CALIFORNIA RESIDENTIAL PURCHASE AGREEMENT(RPA-CA PAGE 8 OF 8) a qualified bu CALIFORNIA ak ASSOCIATION BUYER'S INSPECTION ADVISORY _1. OF REALTORS® (C.A.R.Form BIA-A,Revised 10/02) Property Address: 43840 Blueberry La, Palm Desert, CA 92211 ("Property"). A. IMPORTANCE OF PROPERTY INVESTIGATION: The physical condition of the land and improvements being purchased is not guaranteed by either Seller or Brokers. For this reason, you should conduct thorough investigations of the Property personally and with professionals who should provide written reports of their investigations.A general physical inspection typically does not cover all aspects of the Property nor items affecting the Property that are not physically located on the Property. If the professionals recommend further investigations, including a recommendation by a pest control operator to inspect inaccessible areas of the Property, you should contact qualified experts to conduct such additional investigations. B. BUYER RIGHTS AND DUTIES: You have an affirmative duty to exercise reasonable care to protect yourself, including discovery of the legal, practical and technical implications of disclosed facts, and the investigation and verification of information and facts that you know or that are within your diligent attention and observation.The purchase agreement gives you the right to investigate the Property. If you exercise this right, and you should, you must do so in accordance with the terms of that agreement. This is the best way for you to protect yourself. It is extremely important for you to read all written reports provided by professionals and to discuss the results of inspections with the professional who conducted the inspection. You have the right to request that Seller make repairs, corrections or take other action based upon items discovered in your investigations or disclosed by Seller. If Seller is unwilling or unable to satisfy your requests, or you do not want to purchase the Property in its disclosed and discovered condition, you have the right to cancel the agreement if you act within specific time periods. If you do not cancel the agreement in a timely and proper manner, you may be in breach of contract. C. SELLER RIGHTS AND DUTIES: Seller is required to disclose to you material facts known to him/her that affect the value or desirability of the Property. However, Seller may not be aware of some Property defects or conditions.Seller does not have an obligation to inspect the Property for your benefit nor is Seller obligated to repair,correct or otherwise cure known defects that are disclosed to you or previously unknown defects that are discovered by you or your inspectors during escrow.The purchase agreement obligates Seller to make the Property available to you for investigations. D. BROKER OBLIGATIONS: Brokers do not have expertise in all areas and therefore cannot advise you on many items, such as soil stability, geologic or environmental conditions, hazardous or illegal controlled substances, structural conditions of the foundation or other improvements, or the condition of the roof, plumbing, heating, air conditioning, electrical, sewer, septic,waste disposal, or other system. The only way to accurately determine the condition of the Property is through an inspection by an appropriate professional selected by you. If Broker gives you referrals to such professionals, Broker does not guarantee their performance. You may select any professional of your choosing. In sales involving residential dwellings with no more than four units, Brokers have a duty to make a diligent visual inspection of the accessible areas of the Property and to disclose the results of that inspection. However, as some Property defects or conditions may not be discoverable from a visual inspection, it is possible Brokers are not aware of them. If you have entered into a written agreement with a Broker, the specific terms of that agreement will determine the nature and extent of that Broker's duty to you. YOU ARE STRONGLY ADVISED TO INVESTIGATE THE CONDITION AND SUITABILITY OF ALL ASPECTS OF THE PROPERTY.IF YOU DO NOT DO SO,YOU ARE ACTING AGAINST THE ADVICE OF BROKERS. E.YOU ARE ADVISED TO CONDUCT INVESTIGATIONS OF THE ENTIRE PROPERTY, INCLUDING, BUT NOT LIMITED TO THE FOLLOWING: 1. GENERAL CONDITION OF THE PROPERTY, ITS SYSTEMS AND COMPONENTS: Foundation, roof, plumbing, heating, air conditioning, electrical, mechanical, security, pool/spa, other structural and non-structural systems and components, fixtures, built-in appliances, any personal property included in the sale, and energy efficiency of the Property. (Structural engineers are best suited to determine possible design or construction defects,and whether improvements are structurally sound.) 2. SQUARE FOOTAGE,AGE,BOUNDARIES: Square footage, room dimensions, lot size, age of improvements and boundaries.Any numerical statements regarding these items are APPROXIMATIONS ONLY and have not been verified by Seller and cannot be verified by Brokers. Fences, hedges, walls, retaining walls and other natural or constructed barriers or markers do not necessarily identify true Property boundaries. (Professionals such as appraisers, architects, surveyors and civil engineers are best suited to determine square footage,dimensions and boundaries of the Property.) 3. WOOD DESTROYING PESTS: Presence of, or conditions likely to lead to the presence of wood destroying pests and organisms and other infestation or infection. Inspection reports covering these items can be separated into two sections: Section 1 identifies areas where infestation or infection is evident. Section 2 identifies areas where there are conditions likely to lead to infestation or infection.A registered structural pest control company is best suited to perform these inspections. 4. SOIL STABILITY: Existence of fill or compacted soil,expansive or contracting soil,susceptibility to slippage, settling or movement, and the adequacy of drainage.(Geotechnical engineers are best suited to determine such conditions,causes and remedies.) The copyright laws of the United States (Title 17 U.S. Code) forbid the unauthorized reproduction of this form,or any portion thereof,by photocopy Buyer's Initials( )( ) machine or any other means,including facsimile or computerized formats. Seller's Initials( )( ) A Copyright© 1991-2004, CALIFORNIA ASSOCIATION OF REALTORS®, INC.ALL RIGHTS RESERVED. Reviewed by Date EOIME ROUSING OPPORTUNITY BIA-A REVISED 10/02(PAGE 1 OF 2) BUYER'S INSPECTION ADVISORY(BIA-A PAGE 1 OF 2) Agent: John Osborne Phone:(760)921-2121 Fax:(760)922.4387 Prepared using zipForm®software Broker:CENTURY 21 Osborne Realty 41 Orquidia Ct Palm Desert,CA 92260 Property Address: 43840 Blueberry Ln, Palm Desert, CA 92211 Date:match 7_ 2013 5. ROOF: Present condition, age, leaks, and remaining useful life. (Roofing contractors are best suited to determine these conditions.) 6. POOL/SPA: Cracks,leaks or operational problems.(Pool contractors are best suited to determine these conditions.) 7. WASTE DISPOSAL: Type, size, adequacy, capacity and condition of sewer and septic systems and components, connection to sewer,and applicable fees. 8. WATER AND UTILITES; WELL SYSTEMS AND COMPONENTS: Water and utility availability, use restrictions and costs. Water quality,adequacy,condition,and performance of well systems and components. 9. ENVIRONMENTAL HAZARDS: Potential environmental hazards, including, but not limited to, asbestos, lead-based paint and other lead contamination, radon, methane, other gases, fuel oil or chemical storage tanks, contaminated soil or water, hazardous waste, waste disposal sites, electromagnetic fields, nuclear sources, and other substances, materials, products, or conditions (including mold (airborne, toxic or otherwise), fungus or similar contaminants). (For more information on these items, you may consult an appropriate professional or read the booklets "Environmental Hazards: A Guide for Homeowners, Buyers, Landlords and Tenants," "Protect Your Family From Lead in Your Home"or both.) 10.EARTHQUAKES AND FLOODING: Susceptibility of the Property to earthquake/seismic hazards and propensity of the Property to flood.(A Geologist or Geotechnical Engineer is best suited to provide information on these conditions.) 11.FIRE, HAZARD AND OTHER INSURANCE: The availability and cost of necessary or desired insurance may vary. The location of the Property in a seismic, flood or fire hazard zone, and other conditions, such as the age of the Property and the claims history of the Property and Buyer, may affect the availability and need for certain types of insurance. Buyer should explore insurance options early as this information may affect other decisions, including the removal of loan and inspection contingencies. (An insurance agent is best suited to provide information on these conditions.) 12.BUILDING PERMITS, ZONING AND GOVERNMENTAL REQUIREMENTS: Permits, inspections, certificates, zoning, other governmental limitations, restrictions, and requirements affecting the current or future use of the Property, its development or size. (Such information is available from appropriate governmental agencies and private information providers. Brokers are not qualified to review or interpret any such information.) 13.RENTAL PROPERTY RESTRICTIONS: Some cities and counties impose restrictions that limit the amount of rent that can be charged,the maximum number of occupants; and the right of a landlord to terminate a tenancy. Deadbolt or other locks and security systems for doors and windows, including window bars, should be examined to determine whether they satisfy legal requirements. (Government agencies can provide information about these restrictions and other requirements.) 14.SECURITY AND SAFETY: State and local Law may require the installation of barriers, access alarms, self-latching mechanisms and/or other measures to decrease the risk to children and other persons of existing swimming pools and hot tubs,as well as various fire safety and other measures concerning other features of the Property. Compliance requirements differ from city to city and county to county. Unless specifically agreed, the Property may not be in compliance with these requirements. (Local government agencies can provide information about these restrictions and other requirements.) 15.NEIGHBORHOOD, AREA, SUBDIVISION CONDITIONS; PERSONAL FACTORS: Neighborhood or area conditions, including schools, proximity and adequacy of law enforcement, crime statistics, the proximity of registered felons or offenders, fire protection, other government services, availability, adequacy and cost of any speed-wired, wireless internet connections or other telecommunications or other technology services and installations, proximity to commercial, industrial or agricultural activities, existing and proposed transportation,construction and development that may affect noise,view,or traffic,airport noise, noise or odor from any source, wild and domestic animals, other nuisances, hazards, or circumstances, protected species, wetland properties, botanical diseases, historic or other governmentally protected sites or improvements, cemeteries, facilities and condition of common areas of common interest subdivisions, and possible lack of compliance with any governing documents or Homeowners'Association requirements, conditions and influences of significance to certain cultures and/or religions, and personal needs, requirements and preferences of Buyer. Buyer and Seller acknowledge and agree that Broker: (I) Does not decide what price Buyer should pay or Seller should accept; (II) Does not guarantee the condition of the Property;(iii)Does not guarantee the performance,adequacy or completeness of inspections,services,products or repairs provided or made by Seller or others;(iv)Does not have an obligation to conduct an inspection of common areas or areas off the site of the Property;(v)Shall not be responsible for identifying defects on the Property,in common areas,or offsite unless such defects are visually observable by an inspection of reasonably accessible areas of the Property or are known to Broker;(v1)Shall not be responsible for inspecting public records or permits concerning the title or use of Property;(vii)Shall not be responsible for identifying the location of boundary lines or other items affecting title; (vIII)Shall not be responsible for verifying square footage,representations of others or information contained in Investigation reports,Multiple Listing Service,advertisements,flyers or other promotional material;(ix)Shall not be responsible for providing legal or tax advice regarding any aspect of a transaction entered into by Buyer or Seller; and(x)Shall not be responsible for providing other advice or information that exceeds the knowledge, education and experience required to perform real estate licensed activity. Buyer and Seller agree to seek legal, tax, insurance, title and other desired assistance from appropriate professionals. By signing below, Buyer and Seller each acknowledge that they have read, understand, accept and have received a Copy of this Advisory.Buyer is encouraged to read it carefully. Buyer Signature Date Buyer Signature Date "a qualified buyer of low or moderate Income" Seller Signature Date Seller Signature Date Palm Desert Housing Authority THIS FORM HAS BEEN APPROVED BY THE CALIFORNIA ASSOCIATION OF REALTORS®(CAR.).NO REPRESENTATION IS MADE AS TO THE LEGAL VALIDITY OR 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 REALTOR®.REALTOR®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 Distributed by: REAL ESTATE BUSINESS SERVICES,INC. Reviewed by Date d a subsidiary of the California Association of REALTORS@ EOUM NG H£wAtTY OPPO a ONIOUSI NC 525 South Virgil Avenue,Los Angeles,California 90020 BIA-A REVISED 10/02(PAGE 2 OF 2) a qualified bu BUYER'S INSPECTION ADVISORY(BIA-A PAGE 2 OF 2) 4 CALIFORNIA ADDENDUM ASSOCIATION (CAR.Form ADM,Revised 4/12) No. 1 i OF REALTORS® The following terms and conditions are hereby incorporated in and made a part of the: ® Residential Purchase Agreement, 0 Manufactured Home Purchase Agreement, 0 Business Purchase Agreement, 0 Residential Lease or Month-to-Month Rental Agreement, 0 Vacant Land Purchase Agreement, ❑ Residential Income Property Purchase Agreement, 0 Commercial Property Purchase Agreement,0 Other dated March 7, 2013 ,on property known as 43840 Blueberry Ian Palm Desert, CA 92211 in which "a qualified buyer of low or, moderate Income" is referred to as("Buyer/Tenant") and Palm Desert Housing Authority is referred to as("Seller/Landlord"). The sale of this property is subject to a public hearing scheduled for April 11th, 2013. This property will have a Restrictive Agreement that Buyer must execute and will be recorded against the subject property in favor of the Palm Desert Housing Authvoritv ("Housing Authority") with restrictions including but not limited to affordability, primary_ residency requirements, resale price restrictions and a Right of First Refusal to the Housing Authority, among other restrictions. The City of Palm Desert and the Housing Authority may provide down payent assistance to ensure an affordable housing cost: such loan may be silent for all or part of the term of the loan. The amount of assistance will vary but will be in an amount to ensure an affordable housing cost defined under California's Health and Safety Codes and contingent on the primary loan approval. As Seller is a government entity and not subject to real property taxes, no proration will be made through escrow for this purpose. Buyer is responsible from the date of escrow closing for real property taxes due and will receive a property Tax Bill direct from the Tax Collector's Office. The foregoing terms and conditions are hereby agreed to,and the undersigned acknowledge receipt of a copy of this document. Date Date Buyer/Tenant Seller/Landlord "a qualified buyer of low or Palm Desert Housing Authority Buyer/Tenant Seller/Landlord moderate Income" The copyright laws of the United States(Title 17 U.S.Code)forbid the unauthorized reproduction of this form,or any portion thereof,by photocopy machine or any other means, including facsimile or computerized formats.Copyright©1986-2012,CALIFORNIA ASSOCIATION OF REALTORS®,INC.ALL RIGHTS RESERVED. THIS FORM HAS BEEN APPROVED BY THE CALIFORNIA ASSOCIATION OF REALTORS®(C.A.R.).NO REPRESENTATION IS MADE AS TO THE LEGAL VALIDITY OR ADEQUACY OF ANY PROVISION IN ANY SPECIFIC 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 REALTOR®.REALTOR®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 Distributed by: REAL ESTATE BUSINESS SERVICES,INC. a subsidiary of the California Association REALTORS® 525 South Virgil Avenue,Los Angeles,California ornia 90020 ADM REVISED 4/12(PAGE 1 OF 1) Reviewed by Date EauueousutG ADDENDUM(ADM PAGE 1 OF 1) OPPORTUNITY Agent: John Osborne Phone:(760)921-2121 Fax:(760)922-4387 Prepared using zipForm®software Broker: CENTURY 21 Osborne Realty 41 Orquidia Ct Palm Desert,CA 92260 CALIFORNIA 4 CALIFORNIA RESIDENTIAL PURCHASE AGREEMENT ASSOCIATION AND JOINT ESCROW INSTRUCTIONS �1119r OF RE A L T O R S* For Use With Single Family Residential Property—Attached or Detached (C.A.R.Form RPA-CA,Revised 4/10) Date March 7, 2013 1. OFFER: A. THIS IS AN OFFER FROM "a qualified buyer of low or, moderate Income" ("Buyer"). B. THE REAL PROPERTY TO BE ACQUIRED is described as 75455 Wildflower Lane . Palm Desert, CA 92211 ,Assessor's Parcel No. 634-061-038 ,situated in Palm Desert ,County of Riverside ,California,("Property"). C. THE PURCHASE PRICE offered is One Hundred Seven Thousand, Five Hundred Eighty—Seven (Dollars$ j07.587.00 ). D. CLOSE OF ESCROW shall occur on 60 days or sooner (date)(or❑ Days After Acceptance). 2. AGENCY: A. DISCLOSURE: Buyer and Seller each acknowledge prior receipt of a "Disclosure Regarding Real Estate Agency Relationships" (C.A.R.Form AD). B. POTENTIALLY COMPETING BUYERS AND SELLERS: Buyer and Seller each acknowledge receipt of a disclosure of the possibility of multiple representation by the Broker representing that principal. This disclosure may be part of a listing agreement, buyer representation agreement or separate document (C.A.R. Form DA). Buyer understands that Broker representing Buyer may also represent other potential buyers, who may consider, make offers on or ultimately acquire the Property. Seller understands that Broker representing Seller may also represent other sellers with competing properties of interest to this Buyer. C. CONFIRMATION:The following agency relationships are hereby confirmed for this transaction: Listing Agent Century 21 Osborne Realty (Print Firm Name)is the agent of(check one): 0 the Seller exclusively;or®both the Buyer and Seller. Selling Agent Century 21 Osborne Realty (Print Firm Name)(if not the same as the Listing Agent)is the agent of(check one):0 the Buyer exclusively;or 0 the Seller exclusively;or®both the Buyer and Seller. Real Estate Brokers are not parties to the Agreement between Buyer and Seller. 3. FINANCE TERMS:Buyer represents that funds will be good when deposited with Escrow Holder. A. INITIAL DEPOSIT:Deposit shall be in the amount of $ TBD (1) Buyer shall deliver deposit directly to Escrow Holder by personal check, ❑electronic funds transfer,❑ Other within 3 business days after acceptance (or 0 Other ); OR(2)(If checked)0 Buyer has given the deposit by personal check(or 0 ) to the agent submitting the offer(or to❑ ), made payable to .The deposit shall be held uncashed until Acceptance and then deposited with Escrow Holder(or ❑into Broker's trust account) within 3 business days after Acceptance(or 0 Other ). B. INCREASED DEPOSIT:Buyer shall deposit with Escrow Holder an increased deposit in the amount of $ within Days After Acceptance,or❑ If a liquidated damages clause is incorporated into this Agreement, Buyer and Seller shall sign a separate liquidated damages clause(C.A.R.Form RID)for any increased deposit at the time it is deposited. C. LOAN(S): (1) FIRST LOAN:in the amount of $ TBD This loan will be conventional financing or, if checked, 0 FHA, 0 VA, 0 Seller (C.A.R. Form SFA), 0 assumed financing(CAR.Form PAA), ❑Other .This loan shall be at a fixed rate not to exceed %or,❑an adjustable rate loan with initial rate not to exceed %. Regardless of the type of loan,Buyer shall pay points not to exceed %of the loan amount. (2) ®SECOND LOAN:in the amount of $ TBD This loan will be conventional financing or,if checked, 0 Seller(C.A.R.Form SFA), 0 assumed financing (C.A.R.Form PAA), ®Other See 3.D .This loan shall be at a fixed rate not to exceed %or,❑an adjustable rate loan with initial rate not to exceed %.Regardless of the type of loan, Buyer shall pay points not to exceed %of the loan amount. (3) FHANA:For any FHA or VA loan specified above,Buyer has 17(or 0 )Days After Acceptance to Deliver to Seller written notice (CAR. Form FVA) of any lender-required repairs or costs that Buyer requests Seller to pay for or repair. Seller has no obligation to pay for repairs or satisfy lender requirements unless otherwise agreed in writing. D. ADDITIONAL FINANCING TERMS: Palm Desert Housing Authority and City of Palm Desert may give down payment assistance, provided buyer qualifies. E. BALANCE OF PURCHASE PRICE OR DOWN PAYMENT:in the amount of $ 107,587.00 to be deposited with Escrow Holder within sufficient time to close escrow. F. PURCHASE PRICE(TOTAL): $ 107,587.00 Buyer's Initials( )( ) Seller's Initials( )( ) A The copyright laws of the United States(Title 17 U.S.Code)forbid the unauthorized reproduction of this form,or any portion thereof,by photocopy machine or any other means,including facsimile or computerized formats. OPPPORTUNIITTYY Copyright 01991-2010,CALIFORNIA ASSOCIATION OF REALTORS®,INC.ALL RIGHTS RESERVED. RPA-CA REVISED 4/10(PAGE 1 OF 8) Reviewed by Date CALIFORNIA RESIDENTIAL PURCHASE AGREEMENT(RPA-CA PAGE 1 OF 8) Agent: John Osborne Phone:(760)921-2121 Fax:(760)922-4387 Prepared using zipForm®software Broker: CENTURY 21 Osborne Realty 41 Orquidia Ct Palm Desert,CA 92260 75455 Wildflower Lane Property Address: Palm Desert, CA 92211 Date: March 7, 2013 G. VERIFICATION OF DOWN PAYMENT AND CLOSING COSTS: Buyer(or Buyer's lender or loan broker pursuant to 3H(1))shall, within 7 (or 0 ) Days After Acceptance, Deliver to Seller written verification of Buyer's down payment and closing costs. (If checked, 0 verification attached.) H. LOAN TERMS: (1) LOAN APPLICATIONS:Within 7(or 0 ) Days After Acceptance, Buyer shall Deliver to Seller a letter from lender or loan broker stating that,based on a review of Buyer's written application and credit report,Buyer is prequalified or preapproved for any NEW loan specified in 3C above.(If checked,❑letter attached.) (2) LOAN CONTINGENCY: Buyer shall act diligently and in good faith to obtain the designated loan(s). Obtaining the loan(s)specified above is a contingency of this Agreement unless otherwise agreed in writing.Buyer's contractual obligations to obtain and provide deposit,balance of down payment and closing costs are not contingencies of this Agreement. (3) LOAN CONTINGENCY REMOVAL: (1) Within 17(or 0 )Days After Acceptance,Buyer shall,as specified in paragraph 14,in writing remove the loan contingency or cancel this Agreement; OR(ii) (if checked) 0 the loan contingency shall remain in effect until the designated loans are funded. (4) ❑NO LOAN CONTINGENCY(If checked):Obtaining any loan specified above is NOT a contingency of this Agreement. If Buyer does not obtain the loan and as a result Buyer does not purchase the Property,Seller may be entitled to Buyer's deposit or other legal remedies. I. APPRAISAL CONTINGENCY AND REMOVAL:This Agreement is(or,if checked,❑is NOT)contingent upon a written appraisal of the Property by a licensed or certified appraiser at no less than the specified purchase price. If there is a loan contingency, Buyer's removal of the loan contingency shall be deemed removal of this appraisal contingency (or, ❑ if checked,Buyer shall,as specified in paragraph 14B(3),in writing remove the appraisal contingency or cancel this Agreement within 17(or )Days After Acceptance).If there is no loan contingency, Buyer shall,as specified in paragraph 14B(3),in writing remove the appraisal contingency or cancel this Agreement within 17(or Days After Acceptance. J. ❑ALL CASH OFFER(If checked):Buyer shall,within 7(or 0 ) Days After Acceptance, Deliver to Seller written verification of sufficient funds to close this transaction.(If checked, ❑verification attached.) K. BUYER STATED FINANCING: Seller has relied on Buyer's representation of the type of financing specified (including but not limited to, as applicable,amount of down payment,contingent or non contingent loan,or all cash).If Buyer seeks altemate financing,(i)Seller has no obligation to cooperate with Buyer's efforts to obtain such financing, and (ii) Buyer shall also pursue the financing method specified in this Agreement. Buyer's failure to secure alternate financing does not excuse Buyer from the obligation to purchase the Property and close escrow as specified in this Agreement. 4. ALLOCATION OF COSTS(If checked):Unless otherwise specified in writing,this paragraph only determines who is to pay for the inspection,test or service("Report")mentioned;it does not determine who is to pay for any work recommended or identified in the Report. A. INSPECTIONS AND REPORTS: (1) ❑Buyer®Seller shall pay for an inspection and report for wood destroying pests and organisms ("Wood Pest Report") prepared by Sellers Choice a registered structural pest control company. (2) 0 Buyer 0 Seller shall pay to have septic or private sewage disposal systems pumped and inspected (3) 0 Buyer Q Seller shall pay to have domestic wells tested for water potability and productivity (4) 0 Buyer an Seller shall pay for a natural hazard zone disclosure report prepared by First American or Similar (5) 0 Buyer 0 Seller shall pay for the following inspection or report (6) 0 Buyer 0 Seller shall pay for the following inspection or report B. GOVERNMENT REQUIREMENTS AND RETROFIT: (1) 0 Buyer®Seller shall pay for smoke detector installation and/or water heater bracing,if required by Law.Prior to Close Of Escrow,Seller shall provide Buyer written statement(s)of compliance in accordance with state and local Law,unless exempt. (2) D Buyer 0 Seller shall pay the cost of compliance with any other minimum mandatory government retrofit standards, inspections and reports if required as a condition of closing escrow under any Law. C. ESCROW AND TITLE: (1) ®Buyer®Seller shall pay escrow fee each to pay his/her own . Escrow Holder shall be goresite Escrow (2) ❑Buyer Seller shall pay for owner's title insurance policy specified in paragraph 12E Owner's title policy to be issued by First American title (Buyer shall pay for any title insurance policy insuring Buyer's lender,unless otherwise agreed in writing.) D. OTHER COSTS: (1) 0 Buyer®Seller shall pay County transfer tax or fee (2) 0 Buyer 0 Seller shall pay City transfer tax or fee (3) 0 Buyer 0 Seller shall pay Homeowner's Association("HOA")transfer fee (4) 0 Buyer®Seller shall pay HOA document preparation fees Related Fees (5) ❑Buyer 0 Seller shall pay for any private transfer fee (6) 0 Buyer®Seller shall pay the cost,not to exceed$ 350.00 ,of a one-year home warranty plan, issued by American Home Shield ,with the following optional coverages: Air Conditioner 0 Pool/Spa 0 Code and Permit upgrade ®Other:Appliances Buyer is informed that home warranty plans have many optional coverages in addition to those listed above. Buyer is advised to investigate these coverages to determine those that may be suitable for Buyer. (7) 0 Buyer 0 Seller shall pay for (8) 0 Buyer 0 Seller shall pay for Buyer's Initials( )( ) Seller's Initials( )( ) A Copyright tO 1991-2010,CALIFORNIA ASSOCIATION OF REALTORS®,INC. RPA-CA REVISED 4/10(PAGE 2 OF 8) Reviewed by Date Eauw.soUSING OPPORTUNITY CALIFORNIA RESIDENTIAL PURCHASE AGREEMENT(RPA-CA PAGE 2 OF 8) 75455 Wildflow 75455 Wildflower Lane Property Address: Palm Desert, CA 92211 Date: March 7, 2013 5. CLOSING AND POSSESSION: A. Buyer intends(or 0 does not intend)to occupy the Property as Buyer's primary residence. B. Seller-occupied or vacant property:Possession shall be delivered to Buyer at 5 PM or(❑ 0 AM 0 PM),on the date of Close Of Escrow; ❑on ;or❑no later than Days After Close Of Escrow.If transfer of title and possession do not occur at the same time, Buyer and Seller are advised to:(I)enter into a written occupancy agreement(C.A.R. Form PAA, paragraph 2);and(ii)consult with their insurance and legal advisors. C. Tenant-occupied property: (I)Property shall be vacant at least 5(or 0 )Days Prior to Close Of Escrow,unless otherwise agreed in writing.Note to Seller: If you are unable to deliver Property vacant In accordance with rent control and other applicable Law,you may be In breach of this Agreement. OR(ii)(if checked)❑Tenant to remain in possession.(C.A.R.Form PAA,paragraph 3) D. At Close Of Escrow,(I)Seller assigns to Buyer any assignable warranty rights for items included in the sale,and(ii)Seller shall Deliver to Buyer available Copies of warranties.Brokers cannot and will not determine the assignability of any warranties. E. At Close Of Escrow,unless otherwise agreed in writing,Seller shall provide keys and/or means to operate all locks,mailboxes,security systems, alarms and garage door openers. If Property is a condominium or located in a common interest subdivision, Buyer may be required to pay a deposit to the Homeowners'Association("HOA")to obtain keys to accessible HOA facilities. 6, STATUTORY DISCLOSURES(INCLUDING LEAD-BASED PAINT HAZARD DISCLOSURES)AND CANCELLATION RIGHTS: A. (1) Seller shall,within the time specified in paragraph 14A,Deliver to Buyer,if required by Law:(i)Federal Lead-Based Paint Disclosures(C.A.R. Form FLD)and pamphlet("Lead Disclosures");and(ii)disclosures or notices required by sections 1102 et.seq.and 1103 et.seq.of the Civil Code ("Statutory Disclosures"). Statutory Disclosures include, but are not limited to, a Real Estate Transfer Disclosure Statement("TDS"), Natural Hazard Disclosure Statement ("NHD"), notice or actual knowledge of release of illegal controlled substance, notice of special tax and/or assessments(or,if allowed,substantially equivalent notice regarding the Mello-Roos Community Facilities Act and Improvement Bond Act of 1915)and,if Seller has actual knowledge,of industrial use and military ordinance location(C.A.R.Form SPQ or SSD). (2) Buyer shall,within the time specified in paragraph 14B(1),return Signed Copies of the Statutory and Lead Disclosures to Seller. (3) In the event Seller, prior to Close Of Escrow, becomes aware of adverse conditions materially affecting the Property, or any material inaccuracy in disclosures, information or representations previously provided to Buyer, Seller shall promptly provide a subsequent or amended disclosure or notice,in writing,covering those items. However,a subsequent or amended disclosure shall not be required for conditions and material inaccuracies of which Buyer is otherwise aware,or which are disclosed in reports provided to or obtained by Buyer or ordered and paid for by Buyer. (4) If any disclosure or notice specified in 6A(1),or subsequent or amended disclosure or notice is Delivered to Buyer after the offer is Signed, Buyer shall have the right to cancel this Agreement within 3 Days After Delivery in person,or 5 Days After Delivery by deposit in the mail,by giving written notice of cancellation to Seller or Seller's agent. (5) Note to Buyer and Seller:Waiver of Statutory and Lead Disclosures is prohibited by Law. B. NATURAL AND ENVIRONMENTAL HAZARDS:Within the time specified in paragraph 14A,Seller shall,if required by Law:(i)Deliver to Buyer earthquake guides(and questionnaire)and environmental hazards booklet; (ii)even if exempt from the obligation to provide a NHD,disclose if the Property is located in a Special Flood Hazard Area; Potential Flooding (Inundation) Area; Very High Fire Hazard Zone; State Fire Responsibility Area; Earthquake Fault Zone; Seismic Hazard Zone;and (iii)disclose any other zone as required by Law and provide any other information required for those zones. C. WITHHOLDING TAXES: Within the time specified in paragraph 14A, to avoid required withholding, Seller shall Deliver to Buyer or qualified substitute,an affidavit sufficient to comply with federal(FIRPTA)and California withholding Law,(C.A.R.Form AS or QS). D. MEGAN'S LAW DATABASE DISCLOSURE: Notice: Pursuant to Section 290.46 of the Penal Code, information about specified registered sex offenders is made available to the public via an Internet Web site maintained by the Department of Justice at www.meganslaw.ca.gov.Depending on an offender's criminal history,this information will include either the address at which the offender resides or the community of residence and ZIP Code in which he or she resides. (Neither Seller nor Brokers are required to check this website. If Buyer wants further information, Broker recommends that Buyer obtain information from this website during Buyer's inspection contingency period.Brokers do not have expertise in this area.) 7. CONDOMINIUM/PLANNED DEVELOPMENT DISCLOSURES: A. SELLER HAS: 7 (or 0 )Days After Acceptance to disclose to Buyer whether the Property is a condominium,or is located in a planned development or other common interest subdivision(C.A.R.Form SPQ or SSD). B. If the Property is a condominium or is located in a planned development or other common interest subdivision,Seller has 3(or❑ ) Days After Acceptance to request from the HOA(C.A.R.Form HOA):(i)Copies of any documents required by Law;(ii)disclosure of any pending or anticipated claim or litigation by or against the HOA; (iii)a statement containing the location and number of designated parking and storage spaces;(Iv)Copies of the most recent 12 months of HOA minutes for regular and special meetings;and(v)the names and contact information of all HOAs governing the Property(collectively,"Cl Disclosures").Seller shall itemize and Deliver to Buyer all CI Disclosures received from the HOA and any CI Disclosures in Seller's possession. Buyer's approval of CI Disclosures is a contingency of this Agreement as specified in paragraph 14B(3). 8. ITEMS INCLUDED IN AND EXCLUDED FROM PURCHASE PRICE: A. NOTE TO BUYER AND SELLER:Items listed as included or excluded in the MLS,flyers or marketing materials are not included in the purchase price or excluded from the sale unless specified in 8B or C. B. ITEMS INCLUDED IN SALE: (1) All EXISTING fixtures and fittings that are attached to the Property; (2) EXISTING electrical, mechanical, lighting, plumbing and heating fixtures,ceiling fans,fireplace inserts,gas logs and grates,solar systems, built-in appliances, window and door screens, awnings, shutters,window coverings, attached floor coverings, television antennas, satellite dishes, private integrated telephone systems, air coolers/conditioners, pool/spa equipment, garage door openers/remote controls, mailbox, in-ground landscaping,trees/shrubs,water softeners,water purifiers,security systems/alarms;(If checked®stove(s), 0 refrigerator(s);and (3) The following additional items: Solar System if auplicable (4) Seller represents that all items included in the purchase price,unless otherwise specified,are owned by Seller. (5) All items included shall be transferred free of liens and without Seller warranty. C. ITEMS EXCLUDED FROM SALE:Unless otherwise specified,audio and video components(such as flat screen TVs and speakers)are excluded if any such item is not itself attached to the Property,even if a bracket or other mechanism attached to the component is attached to the Property; and Buyer's Initials( _)( ) Seller's Initials( )( ) A Copyright®1991-2010,CALIFORNIA ASSOCIATION OF REALTORS®,INC. RPA-CA REVISED 4/10(PAGE 3 OF 8) Reviewed by Date o rMUSIC CALIFORNIA RESIDENTIAL PURCHASE AGREEMENT(RPA-CA PAGE 3 OF 8) 75455 Wildflow 75455 Wildflower Lane Property Address: Palm Desert, CA 92211 Date: March 7, 2013 9. CONDITION OF PROPERTY: Unless otherwise agreed:(I)the Property is sold(a)in its PRESENT physical("as-is")condition as of the date of Acceptance and(b)subject to Buyer's Investigation rights;(ii)the Property,including pool,spa,landscaping and grounds,is to be maintained in substantially the same condition as on the date of Acceptance;and(iii)all debris and personal property not included in the sale shall be removed by Seller by Close Of Escrow. A. Seller shall,within the time specified in paragraph 14A,DISCLOSE KNOWN MATERIAL FACTS AND DEFECTS affecting the Property,including known insurance claims within the past five years,and make any and all other disclosures required by law. B. Buyer has the right to inspect the Property and,as specified in paragraph 14B,based upon information discovered in those inspections:(i)cancel this Agreement;or(ii)request that Seller make Repairs or take other action. C. Buyer is strongly advised to conduct Investigations of the entire Property in order to determine Its present condition.Seller may not be aware of all defects affecting the Property or other factors that Buyer considers Important. Property improvements may not be built according to code,in compliance with current Law,or have had permits issued. 10. BUYER'S INVESTIGATION OF PROPERTY AND MATTERS AFFECTING PROPERTY: A. Buyer's acceptance of the condition of, and any other matter affecting the Property, is a contingency of this Agreement as specified in this paragraph and paragraph 14B. Within the time specified in paragraph 14B(1), Buyer shall have the right, at Buyer's expense unless otherwise agreed,to conduct inspections, investigations,tests,surveys and other studies("Buyer Investigations"),including, but not limited to,the right to: (i) inspect for lead-based paint and other lead-based paint hazards; (ii) inspect for wood destroying pests and organisms; (iii) review the registered sex offender database; (iv)confirm the insurability of Buyer and the Property; and(v)satisfy Buyer as to any matter specified in the attached Buyer's Inspection Advisory(C.A.R.Form BIA).Without Seller's prior written consent,Buyer shall neither make nor cause to be made:(i) invasive or destructive Buyer Investigations;or(II)inspections by any governmental building or zoning inspector or government employee,unless required by Law. B. Seller shall make the Property available for all Buyer Investigations.Buyer shall(I)as specified in paragraph 14B,complete Buyer Investigations and,either remove the contingency or cancel this Agreement,and(ii)give Seller,at no cost,complete Copies of all Investigation reports obtained by Buyer,which obligation shall survive the termination of this Agreement. C. Seller shall have water, gas, electricity and all operable pilot lights on for Buyer's Investigations and through the date possession is made available to Buyer. D. Buyer indemnity and Seller protection for entry upon property:Buyer shall:(i)keep the Property free and clear of liens;(ii)repair all damage arising from Buyer Investigations;and(iii)indemnify and hold Seller harmless from all resulting liability,claims,demands,damages and costs of Buyer's investigations. Buyer shall carry, or Buyer shall require anyone acting on Buyer's behalf to carry, policies of liability, workers' compensation and other applicable insurance,defending and protecting Seller from liability for any injuries to persons or property occurring during any Buyer Investigations or work done on the Property at Buyer's direction prior to Close Of Escrow.Seller is advised that certain protections may be afforded Seller by recording a "Notice of Non-responsibility" (C.A.R. Form NNR)for Buyer Investigations and work done on the Property at Buyer's direction.Buyer's obligations under this paragraph shall survive the termination or cancellation of this Agreement and Close of Escrow. 11. SELLER DISCLOSURES;ADDENDA;ADVISORIES;OTHER TERMS: A. Seller Disclosures(if checked):Seller shall,within the time specified in paragraph 14A,complete and provide Buyer with a: ®Seller Property Questionnaire(C.A.R.Form SPQ) OR ®Supplemental Contractual and Statutory Disclosure(C.A.R.Form SSD) B. Addenda(if checked): ®Addendum# 1 (CAR.Form ADM) ®Wood Destroying Pest Inspection and Allocation of Cost Addendum(C.A.R.Form WPA) ❑Purchase Agreement Addendum(C.A.R Form PAA) 0 Septic,Well and Property Monument Addendum(C.A.R.Form SWPI) ❑Short Sale Addendum(C.A.R.Form SSA) 0 Other C. Advisories(if checked): 0 Buyer's Inspection Advisory(CAR.Form BIA) ❑Probate Advisory(C.A.R.Form PAK) ®Statewide Buyer and Seller Advisory(C.A.R.Form SBSA) ❑Trust Advisory(C.A.R.Form TA) 0 REO Advisory(C.A.R.Form REO) D. Other Terms: 12. TITLE AND VESTING: A. Within the time specified in paragraph 14, Buyer shall be provided a current preliminary title report,which shall include a search of the General Index. Seller shall within 7 Days After Acceptance give Escrow Holder a completed Statement of Information. The preliminary report is only an offer by the title insurer to issue a policy of title insurance and may not contain every item affecting title. Buyer's review of the preliminary report and any other matters which may affect title are a contingency of this Agreement as specified in paragraph 14B. B. Title is taken in its present condition subject to all encumbrances, easements, covenants, conditions, restrictions, rights and other matters, whether of record or not,as of the date of Acceptance except:(I)monetary liens of record unless Buyer is assuming those obligations or taking the Property subject to those obligations;and(ii)those matters which Seller has agreed to remove in writing. C. Within the time specified in paragraph 14A,Seller has a duty to disclose to Buyer all matters known to Seller affecting title,whether of record or not. D. At Close Of Escrow, Buyer shall receive a grant deed conveying title (or, for stock cooperative or long-term lease, an assignment of stock certificate or of Seller's leasehold interest), including oil, mineral and water rights if currently owned by Seller. Title shall vest as designated in Buyer's supplemental escrow instructions.THE MANNER OF TAKING TITLE MAY HAVE SIGNIFICANT LEGAL AND TAX CONSEQUENCES. CONSULT AN APPROPRIATE PROFESSIONAL. E. Buyer shall receive a CLTA/ALTA Homeowner's Policy of Title Insurance.A title company,at Buyer's request,can provide information about the availability,desirability, coverage, survey requirements, and cost of various title insurance coverages and endorsements. If Buyer desires title coverage other than that required by this paragraph,Buyer shall instruct Escrow Holder in writing and pay any increase in cost. 13. SALE OF BUYER'S PROPERTY: A. This Agreement is NOT contingent upon the sale of any property owned by Buyer. OR B. 0(If checked):The attached addendum(C.A.R. Form COP)regarding the contingency for the sale of property owned by Buyer is incorporated into this Agreement. Buyer's Initials( )( ) Seller's Initials( )( ) A Copyright©1991-2010,CALIFORNIA ASSOCIATION OF REALTORS©,INC. RPA-CA REVISED 4/10(PAGE 4 OF 8) Reviewed by Date ERJALHOUSING OPPORTUNITY CALIFORNIA RESIDENTIAL PURCHASE AGREEMENT(RPA-CA PAGE 4 OF 8) 75455 Wildflow 75455 Wildflower Lane Property Address: Palm Desert, CA 92211 Date:March 7, 2013 14. TIME PERIODS; REMOVAL OF CONTINGENCIES; CANCELLATION RIGHTS: The following time periods may only be extended, altered, modified or changed by mutual written agreement.Any removal of contingencies or cancellation under this paragraph by either Buyer or Seiler must be exercised in good faith and in writing(C.A.R.Form CR or CC). A. SELLER HAS: 7 (or an 15 )Days After Acceptance to Deliver to Buyer all Reports,disclosures and information for which Seller is responsible under paragraphs 4,6A,B and C,7A,9A, 11A and B,and 12.Buyer may give Seller a Notice to Seller to Perform(C.A.R.Form NSP) if Seller has not Delivered the items within the time specified. B. (1) BUYER HAS: 17(or 0 )Days After Acceptance,unless otherwise agreed in writing,to: (I) complete all Buyer Investigations;approve all disclosures,reports and other applicable information,which Buyer receives from Seller;and approve all other matters affecting the Property;and (ii) Deliver to Seller Signed Copies of Statutory and Lead Disclosures Delivered by Seller in accordance with paragraph 6A. (2) Within the time specified in 14B(1),Buyer may request that Seller make repairs or take any other action regarding the Property(C.A.R. Form RR).Seller has no obligation to agree to or respond to Buyer's requests. (3) Within the time specified in 14B(1)(or as otherwise specified in this Agreement), Buyer shall Deliver to Seller either(i)a removal of the applicable contingency(C.A.R. Form CR), or(ii)a cancellation (C.A.R. Form CC)of this Agreement based upon a contingency or Seller's failure to Deliver the specified items.However,if any report,disclosure or information for which Seller is responsible is not Delivered within the time specified in 14A,then Buyer has 5(or 0 )Days After Delivery of any such items,or the time specified in 14B(1),whichever is later,to Deliver to Seller a removal of the applicable contingency or cancellation of this Agreement. (4) Continuation of Contingency:Even after the end of the time specified in 14B(1)and before Seller cancels this Agreement,if at all,pursuant to 14C, Buyer retains the right to either(i)in writing remove remaining contingencies, or(ii)cancel this Agreement based upon a remaining contingency or Seller's failure to Deliver the specified terms. Once Buyer's written removal of all contingencies is Delivered to Seller,Seller may not cancel this Agreement pursuant to 14C(1). C. SELLER RIGHT TO CANCEL: (1) Seller right to Cancel; Buyer Contingencies: If, within time specified in this Agreement, Buyer does not, in writing, Deliver to Seller a removal of the applicable contingency or cancellation of this Agreement then Seller,after first Delivering to Buyer a Notice to Buyer to Perform (C.A.R.Form NBP)may cancel this Agreement.In such event,Seller shall authorize return of Buyer's deposit. (2) Seller right to Cancel; Buyer Contract Obligations:Seller,after first Delivering to Buyer a NBP may cancel this Agreement for any of the following reasons:(I)if Buyer fails to deposit funds as required by 3A or 3B;(II)if the funds deposited pursuant to 3A or 3B are not good when deposited; (iii)if Buyer fails to Deliver a notice of FHA or VA costs or terms as required by 3C(3)(C.A.R. Form FVA); (iv)if Buyer fails to Deliver a letter as required by 3H;(v)if Buyer fails to Deliver verification as required by 3G or 3J;(v1)if Seller reasonably disapproves of the verification provided by 3G or 3J;(vii)if Buyer fails to return Statutory and Lead Disclosures as required by paragraph 6A(2);or(vIII)if Buyer fails to sign or initial a separate liquidated damage form for an increased deposit as required by paragraphs 3B and 25.In such event,Seller shall authorize return of Buyer's deposit. (3) Notice To Buyer To Perform:The NBP shall:(i)be in writing;(ii)be signed by Seller;and(iii)give Buyer at least 2(or❑ )Days After Delivery(or until the time specified in the applicable paragraph,whichever occurs last)to take the applicable action.A NBP may not be Delivered any earlier than 2 Days Prior to the expiration of the applicable time for Buyer to remove a contingency or cancel this Agreement or meet an obligation specified in 14C(2). D. EFFECT OF BUYER'S REMOVAL OF CONTINGENCIES: If Buyer removes,in writing,any contingency or cancellation rights,unless otherwise specified in a separate written agreement between Buyer and Seller,Buyer shall with regard to that contingency or cancellation right conclusively be deemed to have: (I)completed all Buyer Investigations,and review of reports and other applicable information and disclosures;(ii)elected to proceed with the transaction;and(iii)assumed all liability,responsibility and expense for Repairs or corrections or for inability to obtain financing. E. CLOSE OF ESCROW: Before Seller or Buyer may cancel this Agreement for failure of the other party to close escrow pursuant to this Agreement,Seller or Buyer must first give the other a demand to close escrow(C.A.R.Form DCE). F. EFFECT OF CANCELLATION ON DEPOSITS: If Buyer or Seller gives written notice of cancellation pursuant to rights duly exercised under the terms of this Agreement, Buyer and Seller agree to Sign mutual instructions to cancel the sale and escrow and release deposits, if any, to the party entitled to the funds, less fees and costs incurred by that party. Fees and costs may be payable to service providers and vendors for services and products provided during escrow. Release of funds will require mutual Signed release instructions from Buyer and Seller, judicial decision or arbitration award. A Buyer or Seller may be subject to a civil penalty of up to $1,000 for refusal to sign such instructions if no good faith dispute exists as to who is entitled to the deposited funds(Civil Code§1057.3). 15. REPAIRS: Repairs shall be completed prior to final verification of condition unless otherwise agreed in writing. Repairs to be performed at Seller's expense may be performed by Seller or through others, provided that the work complies with applicable Law, including governmental permit, inspection and approval requirements. Repairs shall be performed in a good,skillful manner with materials of quality and appearance comparable to existing materials. It is understood that exact restoration of appearance or cosmetic items following all Repairs may not be possible.Seller shall:(i) obtain receipts for Repairs performed by others; (ii) prepare a written statement indicating the Repairs performed by Seller and the date of such Repairs;and(iii)provide Copies of receipts and statements to Buyer prior to final verification of condition. 16. FINAL VERIFICATION OF CONDITION:Buyer shall have the right to make a final inspection of the Property within 5(or )Days Prior to Close Of Escrow, NOT AS A CONTINGENCY OF THE SALE, but solely to confirm: (I)the Property is maintained pursuant to paragraph 9; (ii) Repairs have been completed as agreed;and(iii)Seller has complied with Seller's other obligations under this Agreement(C.A.R.Form VP). 17. PRORATIONS OF PROPERTY TAXES AND OTHER ITEMS: Unless otherwise agreed in writing,the following items shall be PAID CURRENT and prorated between Buyer and Seller as of Close Of Escrow:real property taxes and assessments,interest,rents,HOA regular,special,and emergency dues and assessments imposed prior to Close Of Escrow, premiums on insurance assumed by Buyer, payments on bonds and assessments assumed by Buyer,and payments on Mello-Roos and other Special Assessment District bonds and assessments that are a current lien.The following items shall be assumed by Buyer WITHOUT CREDIT toward the purchase price: prorated payments on Mello-Roos and other Special Assessment District bonds and assessments and HOA special assessments that are a current lien but not yet due. Property will be reassessed upon change of ownership.Any supplemental tax bills shall be paid as follows:(I)for periods after Close Of Escrow,by Buyer;and(ii)for periods prior to Close Of Escrow,by Seller(see C.A.R.Form SPT or SBSA for further information).TAX BILLS ISSUED AFTER CLOSE OF ESCROW SHALL BE HANDLED DIRECTLY BETWEEN BUYER AND SELLER.Prorations shall be made based on a 30-day month. Buyer's Initials( )( ) Seller's Initials ( )( ) Copyright©1991-2010,CALIFORNIA ASSOCIATION OF REALTORS©,INC. RPA-CA REVISED 4/10(PAGE 5 OF 8) Reviewed by Date OP°LHOU r"v CALIFORNIA RESIDENTIAL PURCHASE AGREEMENT(RPA-CA PAGE 5 OF 8) 75455 Wildflow 75455 Wildflower Lane Property Address: Palm Desert, CA 92211 Date: March 7, 2013 18. SELECTION OF SERVICE PROVIDERS: Brokers do not guarantee the performance of any vendors, service or product providers ("Providers"), whether referred by Broker or selected by Buyer,Seller or other person.Buyer and Seller may select ANY Providers of their own choosing. 19. MULTIPLE LISTING SERVICE("MLS"):Brokers are authorized to report to the MLS a pending sale and,upon Close Of Escrow,the sales price and other terms of this transaction shall be provided to the MLS to be published and disseminated to persons and entities authorized to use the information on terms approved by the MLS. 20. EQUAL HOUSING OPPORTUNITY:The Property is sold in compliance with federal,state and local anti-discrimination Laws. 21. ATTORNEY FEES: In any action, proceeding,or arbitration between Buyer and Seller arising out of this Agreement, the prevailing Buyer or Seller shall be entitled to reasonable attorney fees and costs from the non-prevailing Buyer or Seller,except as provided in paragraph 26A. 22. DEFINITIONS:As used in this Agreement: A. "Acceptance"means the time the offer or final counter offer is accepted in writing by a party and is delivered to and personally received by the other party or that party's authorized agent in accordance with the terms of this offer or a final counter offer. B. "C.A.R.Form"means the specific form referenced or another comparable form agreed to by the parties. C. "Close Of Escrow"means the date the grant deed,or other evidence of transfer of title,is recorded. D. "Copy"means copy by any means including photocopy,NCR,facsimile and electronic. E. "Days"means calendar days. However,After Acceptance,the last Day for performance of any act required by this Agreement(including Close Of Escrow)shall not include any Saturday,Sunday,or legal holiday and shall instead be the next Day. F. "Days After"means the specified number of calendar days after the occurrence of the event specified,not counting the calendar date on which the specified event occurs,and ending at 11:59PM on the final day. G. "Days Prior"means the specified number of calendar days before the occurrence of the event specified,not counting the calendar date on which the specified event is scheduled to occur. H. "Deliver","Delivered"or"Delivery",regardless of the method used(i.e.messenger,mail,email,fax,other),means and shall be effective upon (i)personal receipt by Buyer or Seller or the individual Real Estate Licensee for that principal as specified in paragraph D of the section titled Real Estate Brokers on page 8;OR(ii)if checked, 0 per the attached addendum(C.A.R.Form RDN). I. "Electronic Copy"or"Electronic Signature"means,as applicable,an electronic copy or signature complying with California Law. Buyer and Seller agree that electronic means will not be used by either party to modify or alter the content or integrity of this Agreement without the knowledge and consent of the other party. J. "Law"means any law,code,statute,ordinance,regulation,rule or order,which is adopted by a controlling city,county,state or federal legislative, judicial or executive body or agency. K. "Repairs"means any repairs(including pest control),alterations,replacements,modifications or retrofitting of the Property provided for under this Agreement. L. "Signed"means either a handwritten or electronic signature on an original document,Copy or any counterpart. 23. BROKER COMPENSATION: Seller or Buyer, or both, as applicable, agrees to pay compensation to Broker as specified in a separate written agreement between Broker and that Seller or Buyer. Compensation is payable upon Close Of Escrow, or if escrow does not close, as otherwise specified in the agreement between Broker and that Seller or Buyer. 24. JOINT ESCROW INSTRUCTIONS TO ESCROW HOLDER: A. The following paragraphs,or applicable portions thereof,of this Agreement constitute the Joint escrow Instructions of Buyer and Seller to Escrow Holder,which Escrow Holder is to use along with any related counter offers and addenda,and any additional mutual instructions to close the escrow: 1,3,4,6C,11 B and D,12, 13B,14F, 17,22,23,24,28,30,and paragraph D of the section titled Real Estate Brokers on page 8.If a Copy of the separate compensation agreement(s)provided for in paragraph 23,or paragraph D of the section titled Real Estate Brokers on page 8 is deposited with Escrow Holder by Broker, Escrow Holder shall accept such agreement(s)and pay out of Buyer's or Seller's funds,or both,as applicable, the respective Broker's compensation provided for in such agreement(s). The terms and conditions of this Agreement not specifically referenced above, in the specified paragraphs are additional matters for the information of Escrow Holder, but about which Escrow Holder need not be concerned. Buyer and Seller will receive Escrow Holder's general provisions directly from Escrow Holder and will execute such provisions upon Escrow Holder's request.To the extent the general provisions are inconsistent or conflict with this Agreement,the general provisions will control as to the duties and obligations of Escrow Holder only.Buyer and Seller will execute additional instructions,documents and forms provided by Escrow Holder that are reasonably necessary to close the escrow. B. A Copy of this Agreement shall be delivered to Escrow Holder within 3 business days after Acceptance(or 0 ).Escrow Holder shall provide Seller's Statement of Information to Title company when received from Seller.Buyer and Seller authorize Escrow Holder to accept and rely on Copies and Signatures as defined in this Agreement as originals,to open escrow and for other purposes of escrow.The validity of this Agreement as between Buyer and Seller is not affected by whether or when Escrow Holder Signs this Agreement. C. Brokers are a party to the escrow for the sole purpose of compensation pursuant to paragraphs 23 and paragraph D of the section titled Real Estate Brokers on page 8.Buyer and Seller irrevocably assign to Brokers compensation specified in paragraphs 23,respectively,and irrevocably instruct Escrow Holder to disburse those funds to Brokers at Close Of Escrow or pursuant to any other mutually executed cancellation agreement. Compensation instructions can be amended or revoked only with the written consent of Brokers.Buyer and Seller shall release and hold harmless Escrow Holder from any liability resulting from Escrow Holder's payment to Broker(s)of compensation pursuant to this Agreement.Escrow Holder shall immediately notify Brokers: (i)if Buyer's initial or any additional deposit is not made pursuant to this Agreement,or is not good at time of deposit with Escrow Holder;or(ii)if either Buyer or Seller instruct Escrow Holder to cancel escrow. D. A Copy of any amendment that affects any paragraph of this Agreement for which Escrow Holder is responsible shall be delivered to Escrow Holder within 2 business days after mutual execution of the amendment. Buyer's Initials( )( ) Seller's Initials( )( ) A Copyright e 1991-2010,CALIFORNIA ASSOCIATION OF REALTORS®.INC. RPA-CA REVISED 4/10(PAGE 6 OF 8)Print Date Reviewed by Date EQUAL ROUSING l OPPORTUNITY CALIFORNIA RESIDENTIAL PURCHASE AGREEMENT(RPA-CA PAGE 6 OF 8) 75455 Wiidflow 75455 Wildflower Lane Property Address: Palm Desert, CA 92211 Date:March 7, 2013 25.LIQUIDATED DAMAGES: If Buyer fails to complete this purchase because of Buyer's default, Seller shall retain, as liquidated damages,the deposit actually paid.If the Property is a dwelling with no more than four units, one of which Buyer intends to occupy,then the amount retained shall be no more than 3%of the purchase price.Any excess shall be returned to Buyer. Release of funds will require mutual, Signed release instructions from both Buyer and Seller,judicial decision or arbitration award. AT TIME OF THE INCREASED DEPOSIT BUYER AND SELLER SHALL SIGN A SEPARATE LIQUIDATED DAMAGES PROVISION FOR ANY INCREASED DEPOSIT.(C.A.R.FORM RID). Buyer's Initials / Seller's Initials / 26. DISPUTE RESOLUTION: A. MEDIATION: Buyer and Seller agree to mediate any dispute or claim arising between them out of this Agreement, or any resulting transaction, before resorting to arbitration or court action.Buyer and Seller also agree to mediate any disputes or claims with Broker(s),who,in writing, agree to such mediation prior to,or within a reasonable time after,the dispute or claim is presented to the Broker.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(i)commences an action without first attempting to resolve the matter through mediation,or(ii)before commencement of an action,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.Exclusions from this mediation agreement are specified in paragraph 26C. B. ARBITRATION OF DISPUTES: Buyer and Seller agree that any dispute or claim in Law or equity arising between them out of this Agreement or any resulting transaction,which is not settled through mediation,shall be decided by neutral, binding arbitration. Buyer and Seller also agree to arbitrate any disputes or claims with Broker(s),who, in writing,agree to such arbitration prior to,or within a reasonable time after,the dispute or claim is presented to the Broker. 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.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 3 of the Code of Civil Procedure.Judgment upon the award of the arbitrator(s)may be entered into any court having jurisdiction. Enforcement of this agreement to arbitrate shall be governed by the Federal Arbitration Act. Exclusions from this arbitration agreement are specified in paragraph 26C. "NOTICE: BY INITIALING IN THE SPACE BELOW YOU ARE AGREEING TO HAVE ANY DISPUTE ARISING OUT OF THE MATTERS INCLUDED IN THE'ARBITRATION OF DISPUTES'PROVISION DECIDED BY NEUTRAL ARBITRATION AS PROVIDED BY CALIFORNIA LAW AND YOU ARE GIVING UP ANY RIGHTS YOU MIGHT POSSESS TO HAVE THE DISPUTE LITIGATED IN A COURT OR JURY TRIAL. BY INITIALING IN THE SPACE BELOW YOU ARE GIVING UP YOUR JUDICIAL RIGHTS TO DISCOVERY AND APPEAL, UNLESS THOSE RIGHTS ARE SPECIFICALLY INCLUDED IN THE 'ARBITRATION OF DISPUTES' PROVISION. IF YOU REFUSE TO SUBMIT TO ARBITRATION AFTER AGREEING TO THIS PROVISION,YOU MAY BE COMPELLED TO ARBITRATE UNDER THE AUTHORITY OF THE CALIFORNIA CODE OF CIVIL PROCEDURE.YOUR AGREEMENT TO THIS ARBITRATION PROVISION IS VOLUNTARY." "WE HAVE READ AND UNDERSTAND THE FOREGOING AND AGREE TO SUBMIT DISPUTES ARISING OUT OF THE MATTERS INCLUDED IN THE'ARBITRATION OF DISPUTES'PROVISION TO NEUTRAL ARBITRATION." Buyer's Initials / Seller's Initials / C. ADDITIONAL MEDIATION AND ARBITRATION TERMS: (1) EXCLUSIONS:The following matters shall be excluded from mediation and arbitration: (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 a mechanic's lien;and(iv)any matter that is within the jurisdiction of a probate, small claims or bankruptcy court. The filing of a court action to enable the recording of a notice of pending action, for order of attachment, receivership, injunction, or other provisional remedies, shall not constitute a waiver or violation of the mediation and arbitration provisions. (2) BROKERS:Brokers shall not be obligated or compelled to mediate or arbitrate unless they agree to do so in writing.Any Broker(s) participating in mediation or arbitration shall not be deemed a party to the Agreement. 27.TERMS AND CONDITIONS OF OFFER: This is an offer to purchase the Property on the above terms and conditions. The liquidated damages paragraph or the arbitration of disputes paragraph is incorporated in this Agreement if initialed by all parties or if incorporated by mutual agreement in a counter offer or addendum. If at least one but not all parties initial such paragraph(s),a counter offer is required until agreement is reached. Seller has the right to continue to offer the Property for sale and to accept any other offer at any time prior to notification of Acceptance.If this offer is accepted and Buyer subsequently defaults, Buyer may be responsible for payment of Brokers' compensation. This Agreement and any supplement, addendum or modification, including any Copy,may be Signed in two or more counterparts,all of which shall constitute one and the same writing. 28. 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.Except as otherwise specified,this Agreement shall be interpreted and disputes shall be resolved in accordance with the laws of the State of California. Neither this Agreement nor any provision in it may be extended,amended,modified,altered or changed,except in writing Signed by Buyer and Seller. Buyer's Initials( )( ) Seller's Initials( )( ) Copyright©1991-2010,CALIFORNIA ASSOCIATION OF REALTORS®,INC. RPA-CA REVISED 4/10(PAGE 7 OF 8) Reviewed by Date OPPORTUNITY CALIFORNIAG CALIFORNIA RESIDENTIAL PURCHASE AGREEMENT(RPA-CA PAGE 7 OF 8) 75455 Wildflow 75455 Wildflower Lane Property Address: Palm Desert, CA 92211 Date:March 7, 2013 29. EXPIRATION OF OFFER:This offer shall be deemed revoked and the deposit shall be retumed unless the offer is Signed by Seller and a Copy of the Signed offer is personally received by Buyer,or by ,who is authorized to receive it, by 5:00 PM on the third Day after this offer is signed by Buyer (or, if checked,❑ by O AM O PM,on (date)). Buyer has read and acknowledges receipt of a Copy of the offer and agrees to the above confirmation of agency relationships. Date Date BUYER BUYER a qualified bqyer of low or moderate Income" (Print name) (Print name) (Address) ❑Additional Signature Addendum attached(C.A.R.Form ASA). 30. ACCEPTANCE OF OFFER:Seller warrants that Seller is the owner of the Property,or has the authority to execute this Agreement.Seller accepts the above offer,agrees to sell the Property on the above terms and conditions,and agrees to the above confirmation of agency relationships. Seller has read and acknowledges receipt of a Copy of this Agreement,and authorizes Broker to Deliver a Signed Copy to Buyer. ❑(If checked)SUBJECT TO ATTACHED COUNTER OFFER(C.A.R.Form CO)DATED: Date Date SELLER SELLER ,Palm Desert Housing Authority (Print name) (Print name) (Address) ❑Additional Signature Addendum attached(C.A.R.Form ASA). ( / ) CONFIRMATION OF ACCEPTANCE: A Copy of Signed Acceptance was personally received by Buyer or Buyer's authorized (Initials) agent on(date) at 0 AM 0 PM.A binding Agreement is created when a Copy of Signed Acceptance Is personally received by Buyer or Buyer's authorized agent whether or not confirmed In this document.Completion of this confirmation is not legally required in order to create a binding Agreement.It is solely intended to evidence the date that Confirmation of Acceptance has occurred. REAL ESTATE BROKERS: A. Real Estate Brokers are not parties to the Agreement between Buyer and Seller. B. Agency relationships are confirmed as stated in paragraph 2. C. If specified in paragraph 3A(2),Agent who submitted the offer for Buyer acknowledges receipt of deposit. D. COOPERATING BROKER COMPENSATION: Listing Broker agrees to pay Cooperating Broker(Selling Firm)and Cooperating Broker agrees to accept,out of Listing Broker's proceeds in escrow:(i)the amount specified in the MLS, provided Cooperating Broker is a Participant of the MLS in which the Property is offered for sale or a reciprocal MLS;or(ii)0 (if checked)the amount specified in a separate written agreement(C.A.R.Form CBC)between Listing Broker and Cooperating Broker.Declaration of License and Tax(C.A.R.Form DLT)may be used to document that tax reporting will be required or that an exemption exists. Real Estate Broker(Selling Firm) Century 21 Osborne Realty DRE Lic.#01312235 By John Osborne DRE Lic.#00852775 Date Address 41 Orquidia Ct City Palm Desert State CA Zip 92260 Telephone Fax (760)922-4387 E-mail john.osborneiacentury2l.corn Real Estate Broker(Listing Firm) Century 21 Osborne Realty DRE Lic.#01312235 By John Osborne DRE Lic.#00852775 Date Address 41 Orquidia Ct City Palm Desert State CA Zip 92260 Telephone Fax (760)922-4387 E-mailiohn.osborneAcentury2l.com ESCROW HOLDER ACKNOWLEDGMENT: Escrow Holder acknowledges receipt of a Copy of this Agreement,(if checked,0 a deposit in the amount of$ ), counter offer numbered , 0 Seller's Statement of Information and ®OtherAddendum #1 ,and agrees to act as Escrow Holder subject to paragraph 24 of this Agreement,any supplemental escrow instructions and the terms of Escrow Holder's general provisions if any. Escrow Holder is advised that the date of Confirmation of Acceptance of the Agreement as between Buyer and Seller is Escrow Holder Foresite Escrow Escrow# By Esther Loves Date Address Phone/Fax/E-mail Escrow Holder is licensed by the California Department of 0 Corporations,CI Insurance,CI Real Estate. License # PRESENTATION OF OFFER:( )Listing Broker presented this offer to Seller on (date). Broker or Designee Initials REJECTION OF OFFER:( )( )No counter offer is being made.This offer was rejected by Seller on (date). Seller's Initials THIS FORM HAS BEEN APPROVED BY THE CALIFORNIA ASSOCIATION OF REALTORS®(C.A.R.).NO REPRESENTATION IS MADE AS TO THE LEGAL VALIDITY OR ADEQUACY OF ANY PROVISION IN ANY SPECIFIC 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 REALTOR®.REALTOR®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. Rhedand Distributed by: A REAL ESTATE BUSINESS SERVICES,INC. Reviewed by a subsidiary of the California Association of REALTORS® 525 South Virgil Avenue,Los Angeles,California 90020 Broker or Designee Date l:ou�t NouslNc IIPPOFiUNITY REVISION DATE 4/10 CALIFORNIA RESIDENTIAL PURCHASE AGREEMENT(RPA-CA PAGE 8 OF 8) 75455 Wildflow CALIFORNIA ak ASSOCIATION BUYER'S INSPECTION ADVISORY 1 OF REALTORS® (C.A.R.Form BIA-A,Revised 10/02) Property Address: 75455 Wildflower Lane , Palm Desert, CA 92211 ("Property"). A. IMPORTANCE OF PROPERTY INVESTIGATION: The physical condition of the land and improvements being purchased is not guaranteed by either Seller or Brokers. For this reason, you should conduct thorough investigations of the Property personally and with professionals who should provide written reports of their investigations.A general physical inspection typically does not cover all aspects of the Property nor items affecting the Property that are not physically located on the Property. If the professionals recommend further investigations, including a recommendation by a pest control operator to inspect inaccessible areas of the Property, you should contact qualified experts to conduct such additional investigations. B. BUYER RIGHTS AND DUTIES: You have an affirmative duty to exercise reasonable care to protect yourself, including discovery of the legal, practical and technical implications of disclosed facts, and the investigation and verification of information and facts that you know or that are within your diligent attention and observation.The purchase agreement gives you the right to investigate the Property. If you exercise this right, and you should, you must do so in accordance with the terms of that agreement. This is the best way for you to protect yourself. It is extremely important for you to read all written reports provided by professionals and to discuss the results of inspections with the professional who conducted the inspection. You have the right to request that Seller make repairs, corrections or take other action based upon items discovered in your investigations or disclosed by Seller. If Seller is unwilling or unable to satisfy your requests, or you do not want to purchase the Property in its disclosed and discovered condition, you have the right to cancel the agreement if you act within specific time periods. If you do not cancel the agreement in a timely and proper manner, you may be in breach of contract. C. SELLER RIGHTS AND DUTIES: Seller is required to disclose to you material facts known to him/her that affect the value or desirability of the Property. However, Seller may not be aware of some Property defects or conditions.Seller does not have an obligation to inspect the Property for your benefit nor is Seller obligated to repair, correct or otherwise cure known defects that are disclosed to you or previously unknown defects that are discovered by you or your inspectors during escrow.The purchase agreement obligates Seller to make the Property available to you for investigations. D. BROKER OBLIGATIONS: Brokers do not have expertise in all areas and therefore cannot advise you on many items, such as soil stability,geologic or environmental conditions, hazardous or illegal controlled substances, structural conditions of the foundation or other improvements, or the condition of the roof, plumbing, heating, air conditioning, electrical, sewer, septic,waste disposal, or other system. The only way to accurately determine the condition of the Property is through an inspection by an appropriate professional selected by you. If Broker gives you referrals to such professionals, Broker does not guarantee their performance. You may select any professional of your choosing. In sales involving residential dwellings with no more than four units, Brokers have a duty to make a diligent visual inspection of the accessible areas of the Property and to disclose the results of that inspection. However, as some Property defects or conditions may not be discoverable from a visual inspection, it is possible Brokers are not aware of them. If you have entered into a written agreement with a Broker, the specific terms of that agreement will determine the nature and extent of that Broker's duty to you. YOU ARE STRONGLY ADVISED TO INVESTIGATE THE CONDITION AND SUITABILITY OF ALL ASPECTS OF THE PROPERTY.IF YOU DO NOT DO SO,YOU ARE ACTING AGAINST THE ADVICE OF BROKERS. E.YOU ARE ADVISED TO CONDUCT INVESTIGATIONS OF THE ENTIRE PROPERTY, INCLUDING, BUT NOT LIMITED TO THE FOLLOWING: 1. GENERAL CONDITION OF THE PROPERTY, ITS SYSTEMS AND COMPONENTS: Foundation, roof, plumbing, heating, air conditioning, electrical, mechanical, security, pool/spa, other structural and non-structural systems and components, fixtures, built-in appliances, any personal property included in the sale, and energy efficiency of the Property. (Structural engineers are best suited to determine possible design or construction defects,and whether improvements are structurally sound.) 2. SQUARE FOOTAGE,AGE,BOUNDARIES: Square footage, room dimensions, lot size, age of improvements and boundaries.Any numerical statements regarding these items are APPROXIMATIONS ONLY and have not been verified by Seller and cannot be verified by Brokers. Fences, hedges, walls, retaining walls and other natural or constructed barriers or markers do not necessarily identify true Property boundaries. (Professionals such as appraisers, architects, surveyors and civil engineers are best suited to determine square footage,dimensions and boundaries of the Property.) 3. WOOD DESTROYING PESTS: Presence of, or conditions likely to lead to the presence of wood destroying pests and organisms and other infestation or infection. Inspection reports covering these items can be separated into two sections: Section 1 identifies areas where infestation or infection is evident. Section 2 identifies areas where there are conditions likely to lead to infestation or infection.A registered structural pest control company is best suited to perform these inspections. 4. SOIL STABILITY: Existence of fill or compacted soil,expansive or contracting soil,susceptibility to slippage, settling or movement, and the adequacy of drainage.(Geotechnical engineers are best suited to determine such conditions,causes and remedies.) The copyright laws of the United States (Title 17 U.S. Code) forbid the unauthorized reproduction of this form,or any portion thereof,by photocopy Buyer's Initials( )( ) machine or any other means,including facsimile or computerized formats. Seller's Initials( )( ) Copyright © 1991-2004, CALIFORNIA ASSOCIATION OF REALTORS®, INC.ALL RIGHTS RESERVED. Reviewed by Date rouu HOUSING OPPORTUNITY BIA-A REVISED 10/02(PAGE 1 OF 2) BUYER'S INSPECTION ADVISORY(BIA-A PAGE 1 OF 2) Agent: John Osborne Phone:(760)921-2121 Fax:(760)922-4387 Prepared using zipForm®software Broker:CENTURY 21 Osborne Realty 41 Orquidia Ct Palm Desert,CA 92260 Property Address: 75455 Wildflower Lane , Palm Desert, CA 92211 Date:Bch 7. 2013 5. ROOF: Present condition, age, leaks, and remaining useful life. (Roofing contractors are best suited to determine these conditions.) 6. POOL/SPA: Cracks,leaks or operational problems.(Pool contractors are best suited to determine these conditions.) 7. WASTE DISPOSAL: Type, size, adequacy, capacity and condition of sewer and septic systems and components, connection to sewer,and applicable fees. 8. WATER AND UTILITES; WELL SYSTEMS AND COMPONENTS: Water and utility availability, use restrictions and costs. Water quality,adequacy,condition,and performance of well systems and components. 9. ENVIRONMENTAL HAZARDS: Potential environmental hazards, including, but not limited to, asbestos, lead-based paint and other lead contamination, radon, methane, other gases, fuel oil or chemical storage tanks, contaminated soil or water, hazardous waste, waste disposal sites, electromagnetic fields, nuclear sources, and other substances, materials, products, or conditions (including mold (airborne, toxic or otherwise), fungus or similar contaminants). (For more information on these items, you may consult an appropriate professional or read the booklets "Environmental Hazards: A Guide for Homeowners, Buyers, Landlords and Tenants," "Protect Your Family From Lead in Your Home"or both.) 10.EARTHQUAKES AND FLOODING: Susceptibility of the Property to earthquake/seismic hazards and propensity of the Property to flood.(A Geologist or Geotechnical Engineer is best suited to provide information on these conditions.) 11.FIRE, HAZARD AND OTHER INSURANCE: The availability and cost of necessary or desired insurance may vary. The location of the Property in a seismic, flood or fire hazard zone, and other conditions, such as the age of the Property and the claims history of the Property and Buyer, may affect the availability and need for certain types of insurance. Buyer should explore insurance options early as this information may affect other decisions, including the removal of loan and inspection contingencies. (An insurance agent is best suited to provide information on these conditions.) 12.BUILDING PERMITS, ZONING AND GOVERNMENTAL REQUIREMENTS: Permits, inspections, certificates, zoning, other governmental limitations, restrictions, and requirements affecting the current or future use of the Property, its development or size. (Such information is available from appropriate governmental agencies and private information providers. Brokers are not qualified to review or interpret any such information.) 13.RENTAL PROPERTY RESTRICTIONS: Some cities and counties impose restrictions that limit the amount of rent that can be charged, the maximum number of occupants; and the right of a landlord to terminate a tenancy. Deadbolt or other locks and security systems for doors and windows, including window bars, should be examined to determine whether they satisfy legal requirements. (Government agencies can provide information about these restrictions and other requirements.) 14.SECURITY AND SAFETY: State and local Law may require the installation of barriers, access alarms, self-latching mechanisms and/or other measures to decrease the risk to children and other persons of existing swimming pools and hot tubs, as well as various fire safety and other measures concerning other features of the Property. Compliance requirements differ from city to city and county to county. Unless specifically agreed, the Property may not be in compliance with these requirements. (Local government agencies can provide information about these restrictions and other requirements.) 15.NEIGHBORHOOD, AREA, SUBDIVISION CONDITIONS; PERSONAL FACTORS: Neighborhood or area conditions, including schools, proximity and adequacy of law enforcement, crime statistics, the proximity of registered felons or offenders, fire protection, other government services, availability, adequacy and cost of any speed-wired, wireless Internet connections or other telecommunications or other technology services and installations, proximity to commercial, industrial or agricultural activities, existing and proposed transportation,construction and development that may affect noise,view,or traffic, airport noise, noise or odor from any source, wild and domestic animals, other nuisances, hazards, or circumstances, protected species, wetland properties, botanical diseases, historic or other governmentally protected sites or improvements, cemeteries, facilities and condition of common areas of common interest subdivisions, and possible lack of compliance with any governing documents or Homeowners'Association requirements, conditions and influences of significance to certain cultures and/or religions, and personal needs, requirements and preferences of Buyer. Buyer and Seller acknowledge and agree that Broker: (I) Does not decide what price Buyer should pay or Seller should accept; (II) Does not guarantee the condition of the Property;(iii)Does not guarantee the performance,adequacy or completeness of inspections,services,products or repairs provided or made by Seller or others;(iv)Does not have an obligation to conduct an inspection of common areas or areas off the site of the Property;(v)Shall not be responsible for identifying defects on the Property,in common areas,or offsite unless such defects are visually observable by an inspection of reasonably accessible areas of the Property or are known to Broker;(v1)Shall not be responsible for inspecting public records or permits concerning the title or use of Property;(vii)Shall not be responsible for identifying the location of boundary lines or other items affecting title; (v111)Shall not be responsible for verifying square footage,representations of others or information contained in Investigation reports,Multiple Listing Service,advertisements,flyers or other promotional material;(ix)Shall not be responsible for providing legal or tax advice regarding any aspect of a transaction entered into by Buyer or Seller;and (x)Shall not be responsible for providing other advice or information that exceeds the knowledge, education and experience required to perform real estate licensed activity. Buyer and Seller agree to seek legal, tax, insurance, title and other desired assistance from appropriate professionals. By signing below, Buyer and Seller each acknowledge that they have read, understand, accept and have received a Copy of this Advisory.Buyer is encouraged to read it carefully. Buyer Signature Date Buyer Signature Date "a qualified buyer of low or moderate Income" Seller Signature Date Seller Signature Date Palm Desert Housing Authority THIS FORM HAS BEEN APPROVED BY THE CALIFORNIA ASSOCIATION OF REALTORS®(C.A.R.).NO REPRESENTATION IS MADE AS TO THE LEGAL VALIDITY OR ADEQUACY OF ANY PROVISION IN ANY SPECIFIC 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 REALTOR®.REALTOR®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. PublisheREALd and ESTATE Distributed by: A BUSINESS SERVICES,INC. ° a subsidiary of the California Association of REALTORS5 Reviewed by Date EsaL MOUSING525 South Virgil Avenue,Los Angeles,California 90020 OPPORTUNITY BIA-A REVISED 10/02(PAGE 2 OF 2) 75455 Wildflow BUYER'S INSPECTION ADVISORY(BIA-A PAGE 2 OF 2) ail CALIFORNIA ADDENDUM ASSOCIATION (CAR.Form ADM,Revised 4/12) No. 1 �� O F REALTORS® A L T O R S The following terms and conditions are hereby incorporated in and made a part of the: ® Residential Purchase Agreement, 0 Manufactured Home Purchase Agreement, 0 Business Purchase Agreement, 0 Residential Lease or Month-to-Month Rental Agreement, 0 Vacant Land Purchase Agreement, 0 Residential Income Property Purchase Agreement, 0 Commercial Property Purchase Agreement,❑Other dated March 7, 2013 ,on property known as 75455 Wildflower Lane Palm Desert, CA 92211 in which "a qualified buyer of low or, moderate Income" is referred to as("Buyer/Tenant") and Palm Desert Housing Authority is referred to as("Seller/Landlord"). The sale of this property is subject to a public hearing scheduled for April 11th, 2013. This property will have a Restrictive Agreement that Buyer must execute and will be recorded against the subject property in favor of the Palm Desert Housing Authvority ("Housing Authority") with restrictions including but not limited to affordability, primary residency requirements, resale price restrictions and a Right of First Refusal to the Housina Authority, amona other restrictions. The City of Palm Desert and the Housing Authority may provide down Repent assistance to ensure an affordable housing cost: such loan may be silent for all or part of the term of the loan. The amount of assistance will vary but will be in an amount to ensure an affordable housing cost defined under California's Health and Safety Codes and contingent on the primary loan approval. As Seller is a government entity and not subject to real property taxes. no proration will be made through escrow for this purpose. Buyer is responsible from the date of escrow closing for real property taxes due and will receive a property Tax Bill direct from the Tax Collector's Office. The foregoing terms and conditions are hereby agreed to,and the undersigned acknowledge receipt of a copy of this document. Date Date Buyer/Tenant Seller/Landlord "a qualified buyer of low or Palm Desert Housing Authority Buyer/Tenant Seller/Landlord moderate Income" The copyright laws of the United States(Title 17 U.S.Code)forbid the unauthorized reproduction of this form,or any portion thereof,by photocopy machine or any other means, including facsimile or computerized formats.Copyright®1986-2012,CALIFORNIA ASSOCIATION OF REALTORS®,INC.ALL RIGHTS RESERVED. THIS FORM HAS BEEN APPROVED BY THE CALIFORNIA ASSOCIATION OF REALTORS®(C.A.R.).NO REPRESENTATION IS MADE AS TO THE LEGAL VALIDITY OR ADEQUACY OF ANY PROVISION IN ANY SPECIFIC 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 REALTOR®.REALTOR®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 Distributed by: REAL ESTATE BUSINESS SERVICES,INC. a subsidiary of the California Association of REALTORS@ b 525 South Virgil Avenue,Los Angeles,California 90020 ADM REVISED 4/12(PAGE 1 OF 1) Reviewed by Date EOM HOUSING ADDENDUM(ADM PAGE 1 OF 1) OPPORTUNITY Agent: John Osborne Phone:(760)921-2121 Fax:(760)922-4387 Prepared using zipForm®software Broker:CENTURY 21 Osborne Realty 41 Orquldia Ct Palm Desert,CA 92260 RECORDING REQUESTED BY AND WHEN RECORDED RETURN TO: Palm Desert Housing Authority 73-510 Fred Waring Drive Palm Desert, California 92260 Attention: Housing Department Exempt from recording fees pursuant to Gov. Code § 6103 UNIT REGULATORY AND LIEN AGREEMENT THIS UNIT REGULATORY AND LIEN AGREEMENT (the "Agreement") is entered into this «Day» day of «Month», «Year», by and between the PALM DESERT HOUSING AUTHORITY, a public body, corporate and politic (the " Authority"), and «Maker», a(n) «Vesting» (individually or collectively, the "Owner"). RECITALS A. The Owner is concurrently herewith acquiring that certain real property (the "Unit") located in the City of Palm Desert, County of Riverside, State of California, legally described in Exhibit "A" attached hereto and incorporated herein by reference, the address of which is set forth in Section 1(b) of this Agreement, and which the Owner shall occupy as the Owner's principal residence. B. For the purpose, among others, of effectuating the Redevelopment Plan for Project Area No. 1, as amended, (the "Project Area"), as originally adopted by Ordinance No 275 on November 25, 1981 (incorporated herein in its entirety by this reference), and the City's approved Housing Element, as adopted by Resolution No. 2011-34 on May 12, 2011 (incorporated herein in its entirety by this reference), the City of Palm Desert ("City") and former Palm Desert Redevelopment Agency ("Agency") have provided assistance to the development of the Desert Rose Project ("Desert Rose") for low and moderate income housing. C. With the Governor's enactment of ABX1 26 and AB 1484 redevelopment agencies were effectively eliminated on February 1, 2012. The legislation prohibited agencies from entering into any new agreements, contracts, debts, loans, etc. which included this Program. D. On February 9, 2012, the City adopted Resolution No. 2012-07 designating the Palm Desert Housing Authority ("Housing Authority") as the successor housing entity for all housing activities formerly completed by the Agency. On October 11, 2012, the Housing Authority Board accepted the housing functions and assets transferred pursuant to Resolution «File Path Name» No. HA-47. The Authority as successor housing entity, will now administer the Desert Rose assistance. E. The Owner has represented to the Authority that the Owner and the Owner's household qualifies as a Person or Family of Very Low, Low or Moderate Income as defined in California Health and Safety Code Section 50093. F. Concurrently herewith, the Owner is executing a promissory note in the amount, if any, set forth in Section 1(c), representing a loan by the Authority to the Owner to assist in the Owner's acquisition of the Unit. NOW, THEREFORE, the parties agree as follows: 1. Fundamental Provisions. The following shall serve as the basic terms of this Agreement: (a) Name of Owner: The name of the Owner is«Maker». (b) Address of the Unit: The address of the Unit is «Property Address», Palm Desert, California. (c) Amount of the Loan: The principal amount of the Loan is the sum of «BUYERS A STD worded» Dollars ($«BUYERS A STD dollar»). The Loan is evidenced by a promissory note (the "Note") and secured by a deed of trust (the "Deed of Trust") executed by Owner concurrently with this Agreement. 2. Definitions. For purposes of this Agreement, the terms listed below shall have the meanings thereinafter specified. (a) AMI. As used herein and throughout this Agreement, "AMI" means the median family income of the Riverside-San Bernardino SMSA, as determined and published annually by the United States Department of Housing and Urban Development ("HUD"), pursuant to California Health and Safety Code Section 50093, and the regulations promulgated thereunder. The AMI shall be adjusted for family size in accordance with state regulations adopted pursuant to California Health and Safety Code Section 50052.5 for the number of persons in the family occupying the Unit. (b) Affordable Housing Cost. For the purposes hereof, the term "Affordable Housing Cost" means a housing cost which is calculated pursuant to California Health and Safety Code Section 50052.5, and for the purposes hereof, the term "housing cost" shall have the meaning ascribed to such term in Title 25 of the California Code of Regulations Section 6920, as such regulations may be amended from time to time, and the term "Gross Income" shall have the meaning ascribed to such term in Title 25 of the California Code of Regulations Section 6914, as such regulations may be amended from time to time. (c) Person or Family of Very Low, Low, or Moderate Income, or Very- Low Income Household, a Low-Income Household, or a Moderate-Income Household means a person, family or household meeting the income qualification limits set forth in California «File Path Name» 2 Health and Safety Code Sections 50093, 50105, 50052.5, and 50053, and Title 25 of the California Code of Regulations Section 6910, et seq., as the case or context may require, as such statutes and regulations may be amended from time to time, and any successor statutes thereto. (d) Qualified Person Household means a person, family, or household of Very Low, Low or Moderate Income defined under 2 (c) herein. (e) Escrow Costs means only those fees charged by an escrow agent or title insurance company charged solely for the cost of closing an escrow and does not include loan fees, refinancing fees, broker commissions, prepaid items, homeowners dues, transfer fees, or other fees, commissions or costs. (f) Unit means the real property described in attached Exhibit "A" and may include vacant land, single-family dwellings and multi-family dwellings, and interchangeably may be referenced as Property. (g) Owner means both the party identified as "Owner" in the first paragraph of this Declaration, and any successor in interest of such Owner with respect to the Property. 3. Restriction on Transfer. (a) The Owner shall not sell, voluntarily or involuntarily, in whole or in part, convey, transfer, lease, sublease, assign, encumber, mortgage, or hypothecate the Unit, or enter into agreements to sell, convey, transfer, lease, sublease, assign, encumber, mortgage, refinance or hypothecate the Unit, except in compliance with the terms of this Agreement and with the prior written approval of the Authority's Executive Director or his designee. Failure to obtain the prior written approval of the Authority's Executive Director or his designee will be deemed a breach of this Agreement. (b) Any violation or breach of the provisions of Section 3(a) hereof is prohibited and any such sale or other transfer of interest enumerated in Section 3(a) above, in whole or in part, shall be null, void and unenforceable, and at the Authority or its designee's option, result in the acquisition of the Unit by the Authority and/or an acceleration of the Note requiring the Owner to immediately repay the Note in full if such transfer is made prior to the expiration of the Term. (c) In the event of the death of the Owner with no qualified surviving joint tenants, the Authority or its designee will work with the heirs, probate court, or other responsible party to either exercise its option to reacquire the Unit in accordance with Section 8 hereof or identify a Qualified Person to purchase the Unit. 4. Term of Agreement. This Agreement shall become effective on the date it is recorded in the Official Records of Riverside County, California, and shall terminate 45 years after the date of recordation hereof (the "Term"). The Authority has determined that 45 years is the longest period feasible for continuing the Term of this Agreement. The Owner's repayment of the Loan shall not terminate this Agreement. «File Path Name» 3 5. Covenant to Maintain Affordability. (a) The Unit is being sold to Owner and the Loan is being given by the Authority to the Owner to increase and improve the community's supply of low and moderate income housing available at an Affordable Housing Cost in accordance with the affordable housing requirements of the Community Redevelopment Law (California Health and Safety Code, Section 33000, et seq). Subject to the provisions of Section 3 hereof, the Owner shall sell, convey, assign, or transfer ownership or occupancy of the Unit only to Qualified Persons who cannot obtain comparable housing at an Affordable Housing Cost on the open market as provided in Health and Safety Code Section 50052.5, as amended. To this end, the Owner agrees that during the Term the Unit shall, except as provided in Sections 6, 9.(c) and 11 hereof, remain available only at an Affordable Housing Cost and shall only be occupied by Qualified Persons. In addition, if, without the Authority or its designee's consent, the Owner fails to occupy the Unit as the Owner's sole principal residence for a period of 90 calendar days, cumulatively, in any calendar year, then the Owner shall be in breach of this Agreement. (b) Subject to the provisions of Section 12 hereof, if upon the expiration of the entire Term the Owner previously has not either (i) sold, conveyed, transferred, or assigned the Unit except to a Qualified Person, except where expressly permitted by Section 6 hereof, or (ii) leased or subleased the Unit in violation of the terms hereof, or (iii) refinanced, hypothecated, encumbered, or mortgaged the Unit in violation of the terms hereof, or (iv) sold the Unit at a price exceeding the maximum price permitted under Section 11 hereof, or (v) otherwise breached the terms and provisions hereof, then the Authority shall forgive the Loan in full. 6. Permitted Transfers and Mortgages. (a) Conveyances to Qualified Persons. Subject to the option rights of the Authority herein, the Owner may convey the Unit to Qualified Persons on the condition that (i) the Owner complies with the requirements of Sections 8 and 9 hereof, (ii) the purchaser covenants to occupy the Unit as such party's sole principal residence, and (iii) the purchase price does not exceed the maximum permitted resale price set forth in Section 11 hereof. Any permitted transferee, shall acquire the Unit subject to the terms and conditions hereof or, at Authority or its designee's option, a new Unit Regulatory and Lien agreement and shall execute in recordable form any documents necessary to accommodate the transfer. (b) Intra-Familv Conveyances. The following transfers of title shall not be breaches of this Agreement: transfer by gift, devise, or inheritance to the Owner's spouse; taking of title by surviving joint tenant that is the Owner's spouse; transfer of title to a spouse as part of a divorce or dissolution proceeding; acquisition of title in conjunction with marriage; transfers of title to an adult child when the child is approved by the Authority's Executive Director or his designee as a Qualified Person at the time of transfer. A transfer to children of the Owner who are not Qualified Persons shall give rise to the option in favor of the Authority to acquire the Unit described in Section 8 hereof; provided, however, such option to acquire shall be exercised by the Authority within 45 days after receipt by the Authority or its designee of written notice of such transfer, and the purchase price shall be the amount set forth in Section 8(e). ,File Path Name» 4 (c) First Trust Deed - Purchase. The Owner may encumber the Unit with a first position deed of trust securing a purchase money loan on the condition that the first position trust deed complies with the terms of this Agreement. (d) Refinancing of First Trust Deed. Subject to compliance with the provisions of Section 10 hereof, the Owner may refinance a first deed of trust encumbering the Unit provided that the Authority's Executive Director or his designee has previously reviewed and approved the terms and conditions thereof including, but not limited to, the principal amount of the proposed loan, the interest rate, the terms of repayment, the identity of the maker of the proposed loan, any documentation pertaining to the subordination or enforcement of the.Authority's loan and related security documents, the costs and fees associated with the making of the proposed loan, and the Owner shall have received the written approval of the proposed loan by the Authority's Executive Director or his designee prior to the date of its closing. Any refinancing of a first deed of trust which has not been previously approved by the Authority's Executive Director or his designee as herein above described shall constitute a default under this Agreement and shall, at the option of the Authority or its designee, result in the acquisition of the unit by the Authority and/or in an acceleration of the Note requiring the Owner to immediately repay the Note in full. (e) Junior Trust Deeds. Subject to compliance with the provisions of Section 10 hereof, the Owner may enter into a loan secured by a deed of trust or mortgage junior and subordinate to the Deed of Trust provided that (i) the proceeds of each loan shall be used solely to pay for repairs or the construction of improvements to the Unit, and (ii) the Authority's Executive Director or his designee has previously reviewed and approved the terms and conditions thereof, including, but not limited to, the principal amount of the proposed loan, the interest rate, the terms of repayment, the identity of the maker of the proposed loan, the costs and fees associated with the making of the proposed loan, and the nature and costs of the proposed repairs or the construction of improvements, to be paid with the proceeds thereof, and (iii) the Owner shall have received the written approval of the proposed loan by Authority's Executive Director or his designee prior to the date of its closing, (iv) the proceeds of the proposed loan shall not be used to pay for the construction of improvement of a luxury nature such as, in or above ground pools or spas, or interior or exterior decorative items, or other improvements where the reasonable useful life does not exceed 5 years. The failure of the Owner to comply fully with the provisions of this Section 6(e) when entering into a loan which is secured by a deed of trust or mortgage junior and subordinate to the Deed of Trust shall constitute a default under this Agreement and shall, at the option of the Authority or its designee, result in the acquisition of the Unit by the Authority and/or in an acceleration of the Note requiring the Owner to repay the Note in full. Notwithstanding the foregoing, the Authority agrees that the Owner may encumber the Unit with a third, junior deed of trust securing a loan from a funding source for this purpose. 7. Subordination to First Trust Deed Encumbrances. (a) The Authority recognizes that Owner may be entering into a purchase money loan to acquire the Unit and also recognizes that immediately prior to the recordation hereof the Owner is or may be recording a deed of trust in connection with such financing that shall be superior to this Agreement and the Deed of Trust, and the Authority agrees that, in such event, such deed of trust recorded prior hereto shall be superior to this Agreement and the Deed of Trust. A default of such deed of trust will also be deemed a «File Path Name» 5 default of this Unit Regulatory and Lien Agreement and Deed of Trust in favor of the Authority, if any. Therefore, in the event of the foreclosure of such deed of trust, or the conveyance by deed in lieu of foreclosure of the Unit to a bank, savings and loan, or other institutional lender that is the beneficiary of such deed of trust, the provisions hereof shall terminate and be of no force or effect; provided, however, if the senior lien holder acquires title to the Unit pursuant to a deed in lieu of foreclosure, then the terms hereof shall terminate only if (i) the Authority has been given written notice of a default under the senior deed of trust and (ii) the Authority shall not have cured the default under the senior deed of trust, or diligently pursued the curing of the default, within 90 days after the date the notice is received by the Authority or its designee. (b) The Authority further agrees that, in the event of a refinancing of a deed of trust that was superior to the lien of the Deed of Trust, and which such refinancing complied in all respects to the requirements of Section 6(d) hereof, the Authority agrees to execute a subordination agreement, in form and substance acceptable to the Authority or its designee, subordinating this Agreement and the Deed of Trust to any first deed of trust, in favor of any bank, savings and loan association, or other institutional lender which makes a loan to refinance the Loan for the purchase of the Unit and which secures the obligations under such loan, subject to the following terms and conditions: (i) The principal amount of the new loan does not exceed the original principal amount of the loan being refinanced, plus reasonable loan fees and costs up to a maximum of five percent (5%) of the original principal amount, unless Authority or its designee has provided written authorization otherwise. (ii) The terms and provisions of the loan secured by such deed of trust, including interest rate, term, amortization, fees, acceleration clauses, late payment charges, and prepayment charges, shall conform substantially to the provisions in the lender's loan documents for comparable loans, unless deviations are given written approval in advance of the subordination by the Authority's Executive Director or his designee. (iii) The Owner shall deliver to the Authority or its designee true and accurate copies of the loan agreement, proposed promissory note, deed of trust, and a written statement from the Owner certifying that such documents are true and accurate copies of the loan documents which the Owner intends to execute in connection with the loan; and (iv) The Authority or its designee may condition any such subordination upon its receipt of a title policy or endorsement from a reputable title company, at the Owner's sole cost and expense, assuring that this Agreement and the Deed of Trust are not being subordinated to any liens or encumbrances other than those imposed by the deed of trust or mortgage securing such new loan as the result of such subordination. If the Authority, at the election by the Executive Director or his designee, has advanced any sums to any senior lien holders such amounts shall immediately be due and payable by the Owner to the Authority, together with interest accrued thereon at the maximum legal rate permitted under California usury laws, upon the closing of any refinancing or sale. 8. Authority Option to Purchase. «File Path Name» 6 (a) Option. In order to maintain and insure that the Unit shall remain affordable to and only occupied by Qualified Persons, the Authority is hereby granted an option, throughout the Term hereof, to purchase the Unit if the Owner desires to transfer the Unit, or to find another Qualified Person to purchase the Unit. The option shall be exercised in writing by the Authority or its designee, if at all, within 45 days after the Authority's Executive Director or his designee's receipt of the written notice (the "Notice of Proposed Sale") of the Owner's desire to transfer the Unit (as more fully described in Section 9(a) hereof). During such 45 day period Owner may also concurrently attempt to market the Unit to sell it to a Qualified Person, as provided in Section 9 hereof. The Owner may enter into an agreement to sell the Unit to a Qualified Person (previously approved by the Executive Director of the Authority or his designee) at a price that does not exceed the maximum price set forth in Section 11 hereof. In such event, the Authority shall not then exercise the option to purchase the Unit or find another Qualified Person to purchase the Unit. If the Authority or its designee exercises the option to purchase the Unit, then the Authority's Executive Director or his designee shall promptly open escrow therefor and shall close escrow for the purchase of the Unit prior to the date that is 60 days after the Authority opens escrow. Title to the Unit shall be delivered to the Authority at the close of escrow free and clear of monetary liens and encumbrances, and closing costs shall be allocated in the fashion as is customary for buyers and sellers in Riverside County. (b) Authority's Failure to Close Following Exercise of the Option to Purchase the Unit. If the Authority or its designee exercises the option to purchase the Unit but, due to the Authority's sole fault, the Authority does not close escrow within 60 days after the date the Authority's Executive Director or his designee opens escrow, then the Owner shall be entitled to sell the Unit to a person or family that is not a Qualified Person; provided, however, (i) if the Unit is sold to a person or family that is not a Qualified Person, or (ii) if the Unit is sold at a price that exceeds the maximum resale price set forth in Section 11 hereof, then the Owner shall repay the Loan (including all accrued interest thereon) to the Authority as provided in Section 9(c), below, plus an amount equal to 25% of the amount by which the net sale proceeds received by the Owner ("net sale proceeds" being the gross sale proceeds minus customary and reasonable costs of sale incurred by the Owner, including brokerage commissions, and adjusted for reasonable pro-rations) exceeds the maximum resale price set forth in Section 11 hereof. (c) Terms of Purchase. If the Authority or its designee exercises the option to purchase the Unit, the purchase price to be paid by the Authority shall be paid all in cash at the close of escrow. The Owner may require a deposit to open escrow in an amount not to exceed three percent (3%) of the purchase price. Title to the Unit shall be delivered to the Authority at the close of escrow free and clear of monetary liens and encumbrances. Closing costs shall be allocated between the buyer and seller according to the customary practices in Riverside County in effect at the time the option is exercised. (d) Conditions to Close of Escrow. The escrow instructions may provide for conditions or contingencies of the type and nature customarily included in residential purchase escrows (including but not limited to inspection by the Authority and elimination of pests, and preliminary title report approvals), provided that any such conditions or contingencies (other than the status of title to the Unit at the time of conveyance and other conditions which by their nature cannot be satisfied prior to closing) must be satisfied or waived on or before the close of escrow. The proceeds of the sale shall be used to pay off all eFile Path Name» 7 monetary liens and encumbrances upon the close of escrow. Escrow shall close within 60 days after the opening of escrow. (e) Purchase Price. The purchase price of the Unit to be paid by the Authority pursuant to the Authority's exercise of the option shall be the lesser of: (i) The actual purchase price paid by the Owner for the Unit plus reasonable and customary escrow closing and title costs (described in Section 2(e) hereof) actually incurred by the Owner in purchasing such Unit, times a fraction, the numerator of which is the AMI for the year in which the sale takes place, and the denominator of which is AMI in which the Owner purchased the Unit (and subtracting therefrom the amount of the Loan, which the Authority shall assume from the Owner); or (ii) the maximum resale price determined pursuant to Section 11(a) hereof, assuming that the Authority, as purchaser, is of the same income level as was the Owner at the time the Owner purchased the Unit; or (iii) the fair market value of the Unit, as determined by an appraiser approved by the Authority or its designee. 9. Resale Price Controls and Procedures. (a) If the Owner elects at any time to sell the Unit, then the Owner shall, prior to signing a listing agreement or other authorization to sell with a real estate broker, first provide to the Authority's Executive Director or his designee the Notice of Proposed Sale setting forth the Owner's intention to sell the Unit. Such Notice of Proposed Sale shall contain information about the Owner's original purchase price of the Unit and such other information as the Authority shall require. Authority or its designee shall have forty-five (45) days from the time following the receipt by the Authority or its designee of the Notice of Proposed Sale to find a new buyer for the Unit being sold, or sixty (60) days to exercise the Authority or its designee's option to purchase described in Section 8 hereof; provided, however, the Authority or its designee may shorten such time period upon a showing of hardship by the Owner. The Owner agrees to consider as purchasers those Qualified Persons identified on a list that may be maintained by the Authority's Executive Director or his designee. Nothing contained herein shall be construed as imposing on the Authority any obligation to find a purchaser of the Unit if the Owner has elected to sell the Unit. (b) If the Owner resells the Unit to a Qualified Person at a price that does not exceed the price set forth in Section 11 hereof, then the provisions hereof shall continue to encumber the Unit, and the Authority or its designee, if necessary, shall subordinate its interest in this Agreement and the Deed of Trust as provided in Section 7 hereof. Each successor in interest to Owner that is a Qualified Person shall acquire the Unit subject to the continuation of the restrictions on such property provided in this Agreement and the Deed of Trust; and if Authority purchases such property and resells the Unit, such acquisition shall not operate to merge this Agreement and the Deed of Trust into Authority's fee interest. (c) If, after expiration of the sixty (60) day period, Authority or its designee has failed to procure an acceptable and qualified buyer and the Authority or its «File Path Name» 8 designee has not exercised its option to purchase the Unit, then the Owner shall then be free to seek a buyer for the Unit without any limitation on resale price or income level of the purchaser; provided, however, (i) if the purchaser is not a Qualified Person, or (ii) if the resale price exceeds the maximum resale price set forth in Section 11(a) hereof, then the Owner shall repay the Loan (and all accrued interest thereon) to the Authority, plus an amount equal to 25% of the amount by which the net sale proceeds received by the Owner exceed the maximum resale price set forth in Section 11(a) hereof. (d) The escrow instructions may provide for conditions or contingencies of the type and nature customarily included in residential purchase escrows (including but not limited to financing contingencies, inspection rights, and preliminary title report approvals), provided that any such conditions or contingencies (other than the status of title to the Unit at the time of conveyance and other conditions which by their nature cannot be satisfied prior to closing) must be satisfied or waived on or before the close of escrow. The proceeds of the sale shall be used to pay off all monetary liens and encumbrances upon the close of escrow. Escrow shall close within a reasonable time after opening thereof. (e) The Owner shall notify any proposed purchaser in writing prior to such person's execution of escrow instructions, deposit receipt, purchase and sale agreement or similar agreement, whichever is earliest, that the title to the Unit will be restricted as provided in this Agreement. (f) The Owner may require a deposit to open escrow in an amount not to exceed three percent (3%) of the purchase price. Title to the Unit shall be delivered to the purchaser at the close of escrow free and clear of monetary liens and encumbrances, except as provided for in this Agreement. Closing costs shall be allocated between the buyer and seller according to the customary practices in Riverside County in effect at the time the escrow is opened. (g) For the purpose of confirming with the Authority that a proposed purchaser is a Qualified Person that will be paying a purchase price that is in compliance with the terms hereof, the Owner shall notify the Authority's Executive Director or his designee in writing of any offer from a prospective purchaser which the Owner intends to accept, disclosing the identity of such prospective purchaser and providing the Authority's Executive Director or his designee with such financial, credit, and other information on such prospective purchaser as required by the Authority, including the following: (i) Name and address of the purchaser. (ii) Number of persons comprising the purchaser's household and their names and ages. (iii) Proposed purchase price of the Unit, and any other consideration for the purchase of the Unit. (iv) Amount of down payment. .File Path Name» 9 (v) Terms of any loan that will be used by the purchaser to finance the purchase of the Unit, including, but not limited to, principal, interest rate, term, and loan fees. (vi) Closing date. (vii) Aggregate annual income of the purchaser's household. (viii) Most recent federal and state income tax returns of the purchaser and all other members of the purchaser's household for the preceding two (2) calendar years, and verification of the proposed purchaser's salary or wages from the purchaser's employer or from current pay stubs showing year to date as well as period payroll for the preceding two (2) calendar years. (ix) Copy of any proposed purchase and sale agreement, escrow instructions, loan application, or other agreements between the Owner and the purchaser of the Unit or relating to the sale of the Unit including closing documents or any other documentation that the Authority's Executive Director or his designee deems appropriate to implement this Agreement. (x) A written statement signed by the proposed purchaser that the Unit will be occupied by the purchaser and used as his or her sole residence. In lieu of providing the foregoing information, these requirements shall be deemed to have been satisfied by delivery to the Authority of a written certification of the foregoing information from the purchaser's lender who shall hold a first position trust deed encumbering the Unit, which certification shall be furnished to Authority's Executive Director or his designee at least 20 days prior to the close of escrow for the Unit. The Authority's Executive Director or his designee shall have 30 days from the date of its receipt by the Authority to review the information (unless the Authority received the certification from prospective purchaser's lender, in which case the Authority's Executive Director or his designee shall have 15 days to review the information). If the Authority or its designee fails to approve the purchaser within such period of time, then the purchaser shall be deemed disapproved by the Authority. The Authority's Executive Director or his designee may require the purchaser to submit other written documentation reasonably requested by the Authority to verify the information set forth herein and to determine that the Affordable Housing Cost restrictions of this Agreement shall be satisfied. If the Authority's Executive Director or his designee receives all such prospective purchaser information requested by the Authority, the Authority's Executive Director or his designee shall determine whether the prospective purchaser is a Qualified Person, and shall thereafter immediately notify the Owner in writing that the prospective sale is authorized and approved, or that the prospective purchaser does not qualify to purchase the Unit as a Qualified Purchaser. The Authority hereby designates the Executive Director of the Authority or his designee to make the evaluations, reviews and determinations set forth in this Section 9(g). If the Authority notifies the Owner that the sale is authorized and approved, the Owner shall proceed to complete the sale of the Unit within 75 days of the date of such approval from the Authority. «File Path Namen 10 10. Notification Prior to Mortgage, Encumbrance or Hypothecation. If Owner desires to refinance any loan secured by a first trust deed encumbering the Unit, pursuant to Section 6(d) hereof, or to borrow funds for a new loan to be secured by a junior trust deed encumbering the Unit the proceeds of which are to be used to pay for repairs or the construction of improvements to the Unit, pursuant to Section 6(e) hereof, prior written approval of the Authority's Executive Director or his designee is required. Only loans encumbering the Unit pursuant to Section 6 will be allowed. The Owner must request such approval in writing at least 30 days prior to the recordation of a deed of trust or mortgage securing any such refinancing or loan, the Owner shall submit to the Authority's Executive Director or his designee in writing the following information: (a) Name and address of lender. (b) Terms of the loan, including, but not limited to, principal, interest rate, term, and loan fees. (c) Closing date of the loan. (d) Copy of any proposed escrow instructions, loan application, or other agreements between the Owner and the lender. (e) Written documentation of compliance with the conditions for Authority approval as set forth in Section 6(d) or Section 6(e) hereof, as applicable. (f) Other written documentation reasonably requested by the Authority or its designee. The Authority's Executive Director or his designee shall have 20 working days after its receipt of all of such information to approve or disapprove the proposed refinancing or loan. 11. Restriction on Resale Price. Except as permitted by Sections 8 and 9(c) hereof, the Owner shall not resell the Unit at a price higher than the lesser of the following: (a) An Affordable Housing Cost (as defined in Section 2(b) hereof) for the prospective purchaser, assuming (i) a reasonable down payment, and (ii) a 30 year fixed rate mortgage at prevailing interest rates. (b) The sum of: (i) the selling Owner's original purchase price of the Unit times a fraction, the numerator of which is the AMI for the year in which the sale takes place, and the denominator of which is AMI in which the Owner purchased the Unit; plus (ii) escrow costs, title insurance premiums paid, and other customary closing costs and fees as described in Section 2(e) hereof; plus (iii) if the Owner sells the Unit after a default under a mortgage or deed of trust, but prior to a trustee's sale or foreclosure sale, all expenses actually incurred by the holder of such mortgage or beneficiary under such deed of trust due to the Owner's default «File Path Name" 11 including, but not limited to, trustee's fees, attorney's fees, costs of sale and debt service on the debt secured by such mortgage or deed of trust will be paid from Owner's proceeds. (c) the fair market value of the Unit, as determined by an appraiser approved by the Authority or its designee. 12. Repayment of the Loan. Upon any resale of the Unit, the Loan shall be due and payable, except as follows: If the resale of the Unit is to another Qualified Person and, at the option of the Authority's Executive Director or his designee, such purchaser either executes an assumption agreement (and such other documents as the Authority's Executive Director or his designee may require) evidencing the assumption of this Agreement, the Note and the Owner's obligations thereunder, or executes and delivers a new Unit Regulatory and Lien Agreement, Note and Deed of Trust (subject only to such prior liens as the Authority's Executive Director or his designee shall approve), then (i) all interest accrued from the date of the Owner's acquisition of the Unit through the closing date of the resale to the new Qualified Person shall be paid at close of escrow of such resale, (ii) interest shall then accrue from and after the closing date of the resale (with such accrued interest again to be subject to payment upon another resale to yet another Qualified Person), and (iii) the principal amount of the Loan shall be due only to the extent that the purchase price paid by the purchaser exceeds the amount that would have been the maximum resale price to another purchaser at the same income level as was the Owner's at the time of the Owner's original acquisition of the Unit. (Thus, if the seller and the purchaser are of the same income level, then none of the principal would be due, but if the purchaser is of a higher income level, then it is possible that some of the principal may be due because the maximum resale price calculated pursuant to Section 11(a) hereof, may be higher if the purchaser is of a higher income level than was the Owner at the time of the Owner's acquisition of the Unit.) At the end of the Term hereof, if there have been no resales to any person or family other than a Qualified Person, the principal balance outstanding and any accrued interest shall be forgiven by the Authority subject to and in accordance with the provisions of Section 5(b) hereof. 13. Annual Report. The Authority shall have the option of requiring that the Owner provide, on an annual basis, such information as the Authority's Executive Director or his designee deems necessary to implement this Agreement. 14. Nondiscrimination Covenants. By the Owner's acceptance hereof, the Owner agrees, for itself, its successors and assigns, to refrain from restricting the transfer of the Unit on the basis of race, color, creed, religion, ancestry, sex, marital status, national origin or age of any person. All such deeds entered into with respect to the Unit shall contain or be subject to substantially the following nondiscrimination or nonsegregation clauses: "The grantee herein covenants by and for himself or herself, his or her heirs, executors, administrators, and assigns, and all persons claiming under or through them, that there shall be no discrimination against or segregation of, any person or group of persons on account of race, color, creed, religion, sex, marital status, national origin, or ancestry in the sale, lease, sublease, transfer, use, occupancy, tenure, or enjoyment of the premises herein conveyed, nor shall the grantee or any person claiming under or through him or her, establish or permit any such practice or practices of discrimination or segregation with reference to the «File Path Name» 12 selection, location, number, use or occupancy of tenants, lessees, subtenants, sublessees, or vendees in the premises herein conveyed. The foregoing covenants shall run with the land." The foregoing shall be a covenant running with the land for the benefit of, and as a burden upon the Unit, and shall remain in effect in perpetuity. Nothing contained herein shall be construed as permitting the Owner to transfer the Unit without the Authority's Executive Director or his designee's prior written consent. 15. Maintenance of the Unit/Prohibition Against Waste. The Owner shall, throughout the Term hereof, keep and maintain the Unit and the improvements thereon in good condition and repair. The Owner shall not commit waste upon the Unit. The Owner shall not remove or demolish the improvements on the Unit. For example, removal of an interior wall which results in less use (two versus three bedrooms). The Owner agrees to complete or restore promptly and in good workmanlike manner any building or improvement which may be damaged or destroyed thereon and to pay when due all claims for labor performed and materials furnished therefore; to comply with all laws affecting the Unit and not to commit or permit any act upon the Unit in violation of the law. If the Owner at any time fails to so keep and maintain the Unit in good condition and repair, after 30 days notice from the Authority, the Authority's Executive Director or his designee shall have a right to enter onto the Unit and perform such deferred maintenance, and the Owner shall promptly reimburse the Authority for all costs incurred by the Authority in performing such maintenance. The Authority shall have no liability whatsoever for any acts or omissions of Owner or its contractors, or agents, or any one of them, or any other person furnishing services, labor and/or material to Owner in connection with the Unit. The Authority shall also use reasonable efforts to provide notice to the Desert Rose Residents' Association prior to such entry. 16. Default. If either party defaults with regard to any of the provisions of this Agreement, the nondefaulting party shall serve written notice of such default upon the defaulting party. If the default is not cured by the defaulting party within thirty (30) days after service of the notice of default, or if the default is not commenced to be cured within thirty (30) days after service of the notice of default and is not cured promptly within a reasonable period of time after commencement, the defaulting party shall be liable to the other party for damages caused by such default. 17. Notices. All notices to be delivered to the parties pursuant to the terms hereof shall be in writing and shall be delivered in person or by U.S. Mail or other delivery service to the addresses listed below. Any of the following addresses may be changed by written notice. If notice is given it shall be deemed effective upon 3 business days after deposit of same, postage prepaid, in the U.S. Mail, or the date of actual receipt as evidenced by personal acknowledgment, return receipt or other comparable means. If to Owner: At the address for the Unit set forth in Section 1(b). ((File Path Name» 13 If to the Authority: Palm Desert Housing Authority 73-510 Fred Waring Drive Palm Desert, California 92260 Attn: Executive Director 18. Covenants to Run With the Land. Except as otherwise provided in this Agreement, the covenants established in this Agreement shall be binding on the Owner and any successor in interest of the Owner to the Unit, and shall be for the benefit and in favor of the Authority, its successors and assigns, the City of Palm Desert, and Alphonso Sanchez the real party in interest under that certain Stipulation for Entry of Judgment, Riverside County Superior Court Case No. INDIO 51124, and the covenants shall run with the land in favor of the Authority and shall be a burden upon the Unit and shall be for the benefit of the parcels that comprise the Project Area owned by the City of Palm Desert, as described in Instrument No. 23610, recorded on December 22, 1981 in the Official Records of Riverside County. The covenants established in this Agreement shall be incorporated by reference in all deeds conveying all or any portion of the Unit. The Owner (and each successor in interest, as the case may be) shall furnish a copy of this instrument to any successors in interest. The Authority shall have the right, in the event of any breach by the Owner of any covenant or agreement herein, to exercise all the rights and remedies, and to maintain any actions at law or suits in equity or other proper proceedings to enforce the curing of such breach of covenant or agreement. Notwithstanding the foregoing, however, the Owner and the successors in interest to the Owner named herein shall be liable for performance hereof only during their respective period of ownership of the Unit, provided that the "transferee" Owner has in writing assumed and agreed to perform the "transferor" Owner's obligations hereunder. 19. No Speculative Investment. The Owner acknowledges that the acquisition of the Unit by the Owner pursuant to this agreement is not intended as a speculative financial investment. 20. Administration. The Authority may administer the terms hereof or may, from time to time assign its rights hereunder or designate another entity, person, licensed real estate broker or organization to administer the terms hereof. 21. Independent and Severable Provisions. If any provision of this instrument is held by a court of competent jurisdiction to be unenforceable or invalid, such holding shall not render unenforceable any other provision hereof, each provision hereof being expressly severable and independently enforceable to the fullest extent permitted by law. 22. Further Assurances and Recordations. The Owner covenants that upon request of the Authority, the Owner, or its heirs, successors or assigns, will execute, acknowledge and deliver, or cause to be executed, acknowledged and delivered, such further instruments and agreements and do such further acts as may be necessary, desirable or proper to carry out more effectively the purpose of this instrument. At the expiration of the Term, the Authority agrees to provide to the Owner an instrument in recordable form that has the effect of confirming the termination of the affordable housing requirements of this instrument. Concurrent with the recordation of any deed of trust or mortgage which is senior or subordinate to the Deed of Trust, the Owner, at its sole cost and expense, shall cause to be eFile Path Name» 14 recorded in the official records of the Office of the Riverside County Recorder a written request for a special notice of default in favor of the Authority. 23. Captions and Section Headings. Captions and section headings used herein are for convenience only and shall not be used in construing this instrument. 24. No Waiver. No waiver by the Authority of its rights hereunder, or of any breach by the Owner of any covenant, restriction, or condition herein contained, shall be effective unless such waiver is in writing, signed by the Authority's Executive Director or his designee and delivered to the Owner. Any waiver by the Authority of its power to terminate the Owner's estate herein or of any covenant, restriction, or condition herein contained, or the failure by the Authority to exercise any right or remedy with respect to any breach or breaches, shall not constitute a waiver or relinquishment for the future of any rights regarding subsequent sales, or of any such covenant or condition nor bar any right or remedy of the Authority in respect of any subsequent breach. 25. Entire Agreement. This instrument constitutes the entire agreement of the parties hereto, and the provisions hereof may be modified or amended only by a written instrument signed by the party to be charged. 26. Attorneys' Fees. In any action brought to declare the rights granted herein or to enforce or to interpret any of the terms of this Agreement, the prevailing party shall be entitled to an award of reasonable attorney's fees in an amount determined by the court. 27. Amendments. Only the Authority, its successors and assigns, and the Owner and the successors and assigns of the Owner in and to all or any part of the fee title to the Unit shall have the right to consent and agree to changes in, or to eliminate in whole or in part, any of the covenants, easements, or other restrictions contained in this Agreement. 28. Successors and Assigns. This Declaration shall be binding upon and inure to the benefit of the Authority and the Owner, and their respective successors, owners and assigns. The terms and provisions hereof shall run with the land and shall be a burden upon the land, including the Unit and each Unit, and shall be binding upon the Owner's successors in interest as purchasers of the Unit, for the benefit of the Authority. (END OF REPORT) uFile Path Name» 15 IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the day and year first above written. "AUTHORITY" "OWNER" PALM DESERT HOUSING AUTHORITY, public body, corporate and politic «Buyer_1» By: «Buyer 2» Jan C. Harnik, Chairman Attest: Rachelle D. Kiassen, Secretary aFile Path Name» 16 State of California ) ) SS. County of Riverside ) On , 2013 before me, M. G. Sanchez, a Notary Public, personally appeared Jan C. Harnik, who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted,"executed the instrument. I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. WITNESS my hand and official seal. (Seal) Signature State of California ) ) SS. County of Riverside ) On , 2013 before me, , a Notary Public, personally appeared , who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. WITNESS my hand and official seal. (Seal) Signature «File Path Name» EXHIBIT A LEGAL DESCRIPTION That certain real property situated in the City of Palm Desert, County of Riverside, State of California, described as follows: LOT «Lot Number» OF TRACT MAP NO. 27546, IN THE CITY OF PALM DESERT, COUNTY OF RIVERSIDE, STATE OF CALIFORNIA, AS PER MAP RECORDED IN BOOK 249 OF MAPS, PAGES 63 THROUGH 68, INCLUSIVE, RECORDS OF SAID COUNTY. APN: «APN Number» nFile Path Name» Exhibit A PROMISSORY NOTE SECURED BY DEED OF TRUST $«BUYERS A STD dollar» Palm Desert, California «Prep Date» FOR VALUE RECEIVED, the undersigned «Maker», ("Maker") hereby promises to pay to the order of the PALM DESERT HOUSING AUTHORITY, a public body, corporate and politic ("Holder"), at Palm Desert, California, without deduction or offset, the sum of «BUYERS A STD worded» Dollars ($«BUYERS A STD dollar») (the "Loan"), together with simple interest at the rate of 3% per annum from the close of escrow as evidenced by the recording date of the Deed of Trust securing this note. If more than one person is signing this as Maker, then the obligations of the Maker shall be joint and several. This Note is secured by that certain Deed of Trust and Assignment of Rents of even date herewith executed by Maker for the benefit of Holder(the "Deed of Trust"). In addition, this Note is issued pursuant to and arises out of the terms and conditions of a Unit Regulatory and Lien Agreement dated «Prep Date» between «Maker» and Holder ("Restrictive Agreement") and recorded concurrently with the Deed of Trust securing this Note. The principal amount of this Loan shall be due and payable on the forty-fifth (45th) anniversary of the date on which the Deed of Trust is recorded in the official records of the County Recorder of the County of Riverside (the "Maturity Date"); provided, however, if Maker has not breached the terms and conditions of either the Restrictive Agreement, this Note or the Deed of Trust, then Holder agrees to forgive all principal and interest, if any, on the Maturity Date as provided in the Restrictive Agreement. Maker may prepay, without penalty or premium, any amount of the interest, if any, or principal under this Note prior to the due date hereof. Prepayments shall be credited first against accrued interest, if any, and the balance shall be credited to principal. Should default be made by the undersigned in the performance of any of the covenants or agreements of the Maker contained in the Restrictive Agreement, this Note, or the Deed of Trust, and if such default is not cured within five (5) days from Holder's notice to Maker of such default, then, at Holder's option, all sums owing hereunder shall, at once, become due and payable. Thereafter, interest shall accrue at the maximum legal rate permitted to be charged by non-exempt lenders under the usury laws of the State of California. This Note and the Deed of Trust by which it is secured shall be governed by and construed in accordance with the laws of the State of California. «File Path Name» 1 All parties who are obligated to pay any portion of the indebtedness represented by this Note, whether as principal, surety, guarantor or endorser, hereby waive presentment for payment, demand, protest, notice of protest and notice of dishonor, and all other notices to which they might otherwise be entitled, and further waive all defenses based on release of security, extension of time or other indulgence given in respect to payment of this Note, to whomsoever given, and further waive all defenses, generally except the defense of actual payment of this Note according to its tenor. The undersigned hereby covenants and agrees to pay all costs and expenses of collection, whether by suit or otherwise, at any time or from time to time incurred, including without limitation attorney's fees and all costs and expenses actually incurred in connection with the protection or realization of the property secured by the Deed of Trust. If Maker shall sell, lease, sublease, assign, convey, transfer, encumber, mortgage, hypothecate or alienate the real property (the "Property") encumbered by the Deed of Trust, or any part thereof, or any interest therein, or shall be divested of their title in any manner or way, whether voluntarily or involuntarily, the indebtedness evidenced hereby, irrespective of the maturity date expressed herein, at the option of the Holder, upon demand, shall immediately become due and payable, except as permitted by Holder pursuant to the terms and conditions set forth in the Restrictive Agreement. To this end, the Deed of Trust securing this Note provides as follows: If the Trustor shall sell, lease, sublease transfer, assign, convey, encumber, mortgage, hypothecate or alienate the real property described herein, or any part thereof, or any interest therein, or shall be divested of title or any interest therein in any manner or way, whether voluntarily or involuntarily (except as permitted by Beneficiary pursuant to the terms and conditions set forth in the Restrictive Agreement), or Trustor shall fail to make any payments due under the note secured by this Deed of Trust, or fail to perform any other obligation under said Restrictive Agreement of even date herewith, this Deed of Trust or the Note, or any other deed of trust encumbering the subject property, then Beneficiary shall have the right, at its option, to declare any indebtedness or obligations secured hereby, irrespective of the maturity date specified in any note evidencing the same, immediately due and payable. Notwithstanding the forgoing, if the resale of the Property is to another Qualified Person (as defined in the Restrictive Agreement), and such purchaser assumes in writing the obligations of the Restrictive Agreement, this Note, and the Deed of Trust, then (i) all interest accrued from the date of the seller's acquisition of the Property through the closing date of the resale to the new Qualified Person shall be paid at close of escrow, (ii) interest shall then accrue from and after the closing date of the resale (with such accrued interest again to be subject to payment upon another resale to yet another Qualified Person), and (iii) the principal amount of the Loan shall be due only to «File Path Name» 2 the extent that the purchase price paid by the purchaser exceeds the amount that would have been the maximum resale price to another purchaser at the same income level of the seller (at the time of the seller's original acquisition of the Property). (Thus, if the seller and the purchaser are of the same income level, then none of the principal would be due, but if the purchaser is of a higher income level, then it is possible that some of the principal may be due because the maximum resale price calculated pursuant to the Restrictive Agreement may be higher if the purchaser is of a higher income level than was the seller at the time of the seller's acquisition of the Property). At the end of the 45-year term of the Restrictive Agreement, if there have been no resales to any persons or families other than Qualified Persons, then the principal balance outstanding and any accrued interest shall be forgiven by the Holder subject to and in accordance with the provisions of the Restrictive Agreement. Subject to the foregoing, the terms of this Note shall be binding upon and inure to the benefit, as the case or context may require, of the respective heirs, successors in interest and assigns of the undersigned and the Holder. This note may be subject to Section 2966 of the California Civil Code, which provides that the Holder of this Note shall give written notice to Maker, or its successor in interest, of prescribed information at least 60 (sixty) and not more than 150 days before any balloon payment is due. Time is of the essence with respect to each and every provision hereof. If any provision hereof is found to be invalid or unenforceable by a court of competent jurisdiction, the invalidity thereof shall not affect the enforceability of the remaining provisions of this Note. Buyer_1» Date «Buyer 2» Date «File Path Name» 3 RECORDING REQUESTED BY AND WHEN RECORDED MAIL TO Palm Desert Housing Authority 73-510 Fred Waring Drive Palm Desert, California 92260 Attn: Housing Dept. SPACE ABOVE THIS LINE FOR RECORDER'S USE No Recording Fee Required Pursuant to Gov. Code § 6103 LONG FORM DEED OF TRUST AND ASSIGNMENT OF RENTS A. P. N. «APN Number» This Deed of Trust, made this «Day» day of «Month», «Year», between «Maker», herein called Trustor, whose address is «Property Address», Palm Desert, California, in favor of First American Title Insurance Company, as Trustee, for the benefit of the PALM DESERT HOUSING AUTHORITY, a public body, corporate and politic, herein called Beneficiary, Witnesseth: That Trustor IRREVOCABLY GRANTS, TRANSFERS AND ASSIGNS TO TRUSTEE IN TRUST, WITH POWER OF SALE, that certain real property and all improvements located thereon (the "Property") in Riverside County, California, described as: LOT «Lot Number» OF TRACT MAP NO. 27546, IN THE CITY OF PALM DESERT, COUNTY OF RIVERSIDE, STATE OF CALIFORNIA, AS PER MAP RECORDED IN BOOK 249 OF MAPS, PAGES 63 THROUGH 68, INCLUSIVE, RECORDS OF SAID COUNTY. TOGETHER WITH the rents, issues and profits thereof, SUBJECT, HOWEVER, to the right, power and authority hereinafter given to and conferred upon Beneficiary to collect and supply such rents, issues and profits. nFile Path Name» 1 For the Purpose of Securing: (1) Performance of each agreement of Trustor herein contained. (2) Payment of the indebtedness evidenced by one promissory note of even date herewith, and any extension or renewal thereof, in the principal sum of «BUYERS A STD worded» Dollars ($«BUYERS A STD dollar») executed by Trustor in favor of Beneficiary or order (the "Note"). (3) The rights of the Beneficiary and the obligations of the Trustor set forth in that certain Unit Regulatory and Lien Agreement (the " Restrictive Agreement ") from the original Trustor to Beneficiary dated «Prep Date» and recorded concurrently herewith. To Protect the Security of This Deed of Trust, Trustor Agrees: (1) To keep said Property in good condition and repair; not to remove or demolish any building thereon; to complete or restore promptly and in good workmanlike manner any building which may be constructed, damaged or destroyed thereon and to pay when due all claims for labor performed and materials furnished therefore; to comply with all laws affecting said Property, or requiring any alterations or improvements to be made thereon; not to commit or permit waste thereof; not to commit, suffer or permit any act upon said Property in violation of law; and to do all other acts which from the character or use of said Property may be reasonably necessary, the specific enumerations herein not excluding the general. (2) To provide or cause to provide, maintain and deliver to Beneficiary fire insurance satisfactory to and with loss payable to Beneficiary and any superior trust deed holder, as their interests may appear. The amount collected under any fire or other insurance policy may be applied by Beneficiary upon any indebtedness secured hereby and in such order as Beneficiary may determine, or at option of Beneficiary the entire amount so collected or any part thereof may be released to Trustor. Such application or release shall not cure or waive any default or notice of default hereunder or invalidate any act done pursuant to such notice. (3) To appear in and defend any action or proceeding purporting to affect the security hereof or the rights or powers of Beneficiary or Trustee; and to pay all costs and expenses, including cost of evidence of title and attorney's fees in a reasonable sum, in any such action or proceeding in which Beneficiary or Trustee may appear, and in any suit brought by Beneficiary to foreclose this Deed of Trust. (4) To pay: at least ten days before delinquency all taxes and assessments affecting said Property, including assessments on appurtenant water stock; when due, all encumbrances, charges and liens, with interest, on said Property or any part thereof; all costs, fees and expenses of this Trust. Should Trustor fail to make any payment or to do any act as herein provided, then Beneficiary or Trustee, but without obligation so to do and without notice to or demand upon Trustor and without releasing Trustor from any obligation hereof, may: «File Path Namen 2 make or do the same in such manner and to such extent as either may deem necessary to protect the security hereof, Beneficiary or Trustee being authorized to enter upon said Property for such purposes; appear in and defend any action or proceeding purporting to affect the security hereof or the rights or powers of Beneficiary or Trustee; pay, purchase, contest or compromise any incumbrance, charge or lien; and, in exercising any such powers, pay necessary expenses, employ counsel and pay his reasonable fees. All such payments, costs and expenses made or incurred by Beneficiary or Trustee shall constitute obligations of Trustor secured by this Deed of Trust. (5) To pay immediately and without demand all sums so expended by Beneficiary or Trustee, with interest from date of expenditure at the amount allowed by law in effect at the date hereof, and to pay for any statement provided for by law in effect at the date hereof regarding the obligation secured hereby any amount demanded by the Beneficiary not to exceed the maximum allowed by law at the time when said statement is demanded. (6) That any award of damages in connection with any condemnation for public use of or injury to said Property or any part thereof is hereby assigned and shall be paid to Beneficiary (and to any superior trust deed holder, as their interests may appear) who may apply or release such moneys received by him in the same manner and with the same effect as above provided for disposition of proceeds of fire or other insurance. (7) That by accepting payment of any sum secured hereby after its due date, Beneficiary does not waive his right either to require prompt payment when due of all other sums so secured or to declare default for failure so to pay. (8) That at any time or from time to time, without liability therefore and without notice, upon written request of Beneficiary and presentation of this Deed of Trust and the Note for endorsement, and without affecting the personal liability of any person for payment of the indebtedness secured hereby, Trustee may: reconvey any part of said Property; consent to the making of any map or plat thereof; join in granting any easement thereon; or join in any extension agreement or any agreement subordinating the lien or charge hereof. (9) That upon written request of Beneficiary stating that all sums secured hereby have been paid, and upon surrender of this Deed of Trust and the Note to Trustee for cancellation and retention and upon payment of its fees, Trustee shall reconvey, without warranty, the Property then held hereunder. The recitals in such reconveyance of any matters or facts shall be conclusive proof of the truthfulness thereof. The grantee in such reconveyance may be described as "the person or persons legally entitled thereto." Five years after issuance of such full reconveyance, Trustee may destroy the Note and this Deed of Trust (unless directed in such request to retain them). «File Path Name» 3 (10) That as additional security, subject to the rights of superior trust deed holders, as their interests may appear, Trustor hereby gives to and confers upon Beneficiary the right, power and authority, during the continuance of these Trusts, to collect the rents, issues and profits of said Property, reserving unto Trustor the right, prior to any default by Trustor in payment of any indebtedness secured hereby or in performance of any agreement hereunder, to collect and retain such rents, issues and profits as they become due and payable. Upon any such default, Beneficiary may at any time without notice, either in person, by agent, or by a receiver to be appointed by a court, and without regard to the adequacy of any security for the indebtedness hereby secured, enter upon and take possession of said Property or any part thereof, in his own name sue for or otherwise collect such rents, issues and profits, including those past due and unpaid, and apply the same, less costs and expenses of operation and collection, including reasonable attorney's fees, upon any indebtedness secured hereby, and in such order as Beneficiary may determine. The entering upon and taking possession of said Property, the collection of such rents, issues and profits and the application thereof as aforesaid, shall not cure or waive any default or notice of default hereunder or invalidate any act done pursuant to such notice. (11) That upon default by Trustor in payment of any indebtedness secured hereby, or in performance of any agreement hereunder, Beneficiary may declare all sums secured hereby immediately due and payable by delivery to Trustee of written declaration of default and demand for sale and of written notice of default and election to cause to be sold said Property, which notice Trustee shall cause to be filed for record. Beneficiary also shall deposit with Trustee this Deed of Trust, the Note and all documents evidencing expenditures secured hereby. After the lapse of such time as may then be required by law following the recordation of said notice of default, and notice of sale having been given as then required by law, Trustee, without demand on Trustor, shall sell said Property at the time and place fixed by it in said notice of sale, either as a whole or in separate parcels, and in such order as it may determine, at public auction to the highest bidder for cash in lawful money of the United States, payable at time of sale. Trustee may postpone sale of all or any portion of said Property by public announcement at such time and place of sale, and from time to time thereafter may postpone such sale by public announcement at the time fixed by the preceding postponement. Trustee shall deliver to such purchaser its deed conveying the Property so sold, but without any covenant or warranty, express or implied. The recitals in such deed of any matters or facts shall be conclusive proof of the truthfulness thereof. Any person, including Trustor, Trustee, or Beneficiary as hereinafter defined, may purchase at such sale. After deducting all costs, fees and expenses of Trustee and of this Trust, including cost of evidence of title in connection with sale, Trustee shall apply the proceeds of sale to payment of: all sums expended under the terms hereof, not then repaid, with accrued interest at the amount allowed by law in effect at the date hereof; all other sums then secured hereby; and the remainder, if any, to the person or persons legally entitled thereto. «File Path Name,, 4 (12) Beneficiary, or any successor in ownership of any indebtedness secured hereby, may from time to time, by instrument in writing, substitute a successor or successors to any Trustee named herein or acting hereunder, which instrument, executed by the Beneficiary and duly acknowledged and recorded in the office of the recorder of the county or counties where said Property is situated, shall be conclusive proof of proper substitution of such successor Trustee or Trustees, who shall, without conveyance from the Trustee predecessor, succeed to all its title estate, rights, powers and duties. Said instrument must contain the name of the original Trustor, Trustee and Beneficiary hereunder, the book and page where this Deed of Trust is recorded and the name and address of the new Trustee. (13) That this Deed of Trust applies to, inures to the benefit of, and binds all parties hereto, their heirs, legatees, devisees, administrators, executors, successors and assigns. The term Beneficiary shall mean the owner and holder, including pledgees, of the Note, whether or not named as Beneficiary herein. In this Deed of Trust, whenever the context so requires, the masculine gender includes the feminine and/or neuter, and the singular number includes the plural. (14) That Trustee accepts this Trust when this Deed of Trust, duly executed and acknowledged, is made a public record as provided by law. Trustee is not obligated to notify any party hereto of pending sale under any Deed of Trust or of any action or proceeding in which Trustor, Beneficiary or Trustee shall be a party unless brought by Trustee. (15) If the Trustor shall sell, lease, transfer, assign, convey, encumber, mortgage, hypothecate or alienate the real Property described herein, or any part thereof, or any interest therein, or shall be divested of title or any interest therein in any manner or way, whether voluntarily or involuntarily (except as permitted by Beneficiary pursuant to the terms and conditions set forth in the Restrictive Agreement), or if Trustor shall fail to make any payments due under the Note, or fail to perform any other obligation under said Restrictive Agreement, this Deed of Trust or the Note, or any other deed of trust encumbering the subject Property, then Beneficiary shall have the right, at its option, to declare any indebtedness or obligations secured hereby, irrespective of the maturity date specified in any note evidencing the same, immediately due and payable. Notwithstanding the foregoing, if the resale of the Property is to another Qualified Person (as defined in the Restrictive Agreement), and such purchaser assumes in writing the obligations of the Restrictive Agreement, the Note, and this Deed of Trust, then (i) all interest accrued from the date of the seller's acquisition of the Property through the closing date of the resale to the new Qualified Person shall be paid at Close of Escrow, (ii) interest shall then accrue from and after the closing date of the resale (with such accrued interest again to be subject to payment upon another resale to yet another Qualified Person), and (iii) the principal amount of the Loan (as defined in the Restrictive Agreement) shall be due only to the extent that the purchase price paid by the purchaser exceeds the amount that would have been the maximum resale price «File Path Name» 5 to another purchaser at the same income level of the seller (at the time of the seller's original acquisition of the Property). (Thus, if the seller and the purchaser are of the same income level, then none of the principal would be due, but if the purchaser is of a higher income level, then it is possible that some of the principal may be due because the maximum resale price calculated pursuant to the Restrictive Agreement may be higher if the purchaser is of a higher income level than was the seller at the time of the seller's acquisition of the Property.) At the end of the 45 year term of the Restrictive Agreement hereof, if there have been no resales to any person or family other than a Qualified Person, the principal balance outstanding and any accrued interest shall be forgiven by the Beneficiary subject to and in accordance with the provisions of the Restrictive Agreement. (16) Notwithstanding anything provided herein to the contrary, the Beneficiary agrees to look solely to the Trustor's interest in the Property encumbered hereby and improvements thereon (or the proceeds thereof) for the satisfaction of any remedy of the Beneficiary, and for the collection of a judgment (or other judicial process) requiring the payment of money by the Trustor, except where such judgment results from a claim of fraud; intentional misrepresentation; misapplication; misappropriation; or wrongful retention of rental income; casualty insurance; condemnation proceeds; or other funds attributable to the Property; the commission of any act of deliberate waste with respect to the Property encumbered hereby; or the deposit of any hazardous or toxic materials on the Property encumbered hereby; in which events there shall be no such limitation on the Beneficiary's recourse against the Trustor. (17) Any breach or default under the Restrictive Agreement or the Note shall be deemed a breach of this Deed of Trust. (18) Immediately prior to the recordation hereof the Trustor is or may be recording a deed of trust that shall be superior to this Deed of Trust. In such event, such Deed of Trust recorded prior hereto shall be superior to this Deed of Trust. Therefore, in the event of the foreclosure of such Deed of Trust, or the conveyance by deed in lieu of foreclosure of the Property to a bank, savings and loan, or other institutional lender that is the beneficiary of such Deed of Trust superior to the lien hereof, the provisions hereof shall terminate and be of no force or effect; provided however, if the senior lender acquires title to the Property pursuant to a deed in lieu of foreclosure, then this Deed of Trust shall terminate only if (i) Beneficiary has been given written notice of a default under the senior lender's Deed of Trust, and (ii) the Beneficiary shall not have cured the default under the senior lender's Deed of Trust, or diligently pursued the curing of the default as described in the Restrictive Agreement. The undersigned Trustor requests that a copy of any Notice of Default and of any Notice of Sale hereunder be mailed to him at his address hereinbefore set forth. «Buyer_1» Date «Buyer_2» Date «File Path Name» 6 State of California ) ) SS. County of Riverside ) On , 2013 before me, , a Notary Public, personally appeared , who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. WITNESS my hand and official seal. (Seal) Signature State of California ) ) SS. County of Riverside ) On , 2013 before me, , a Notary Public, personally appeared , who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. WITNESS my hand and official seal. (Seal) Signature «File Path Name» RECORDING REQUESTED BY AND WHEN RECORDED MAIL TO Palm Desert Housing Authority 73-510 Fred Waring Drive Palm Desert, CA 92260 ATTEN: Housing Department SPACE ABOVE THIS LINE FOR RECORDER'S USE Exempt from recording fees pursuant to Gov. Code§6103 A.P.N. «APN Number» Request for Notice In accordance with Section 2924b, Civil Code, request is hereby made that a copy of any Notice of Default and a copy of any Notice of Sale under the Deed of Trust recorded concurrent herewith in the official records of Riverside County, California, and describing land therein as: LOT «Lot Number» OF TRACT MAP NO. 27546, IN THE CITY OF PALM DESERT, COUNTY OF RIVERSIDE, STATE OF CALIFORNIA, AS PER MAP RECORDED IN BOOK 249 OF MAPS, PAGES 63 THROUGH 68, INCLUSIVE, RECORDS OF SAID COUNTY. Executed by as Trustors, in which is named as Beneficiary and as Trustee, be mailed to: Palm Desert Housing Authority 73-510 Fred Waring Drive Palm Desert, CA 92260 Buyer_1» Date «Buyer_2» Date State of California ) County of Riverside ) SS. On , 2013 before me, , a Notary Public, personally appeared- , who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s)acted, executed the instrument. I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. WITNESS my hand and official seal. (Seal) Signature File Path Name» 1 BUYERS AFFIDAVIT Date: Applicant: Co-Applicant: Address: Telephone: (home) (work) Are you a First Time Home Buyer: ❑ Yes ❑ No Is the Head of Household (Check all that apply): ❑ Male ❑ Female ❑ Over 55 Names and ages of all intended occupants: (If additional space is required,please include a separate sheet with all of the remaining household members) Name Age Sex Relationship to Applicant Ethnicity* f M/F) Total number of person(s) in my/our house who will live in the applied-for home is Household income: Gross Annual Income: $ *ETHNICITY: (Select ONLY one of three race/multi-race categories that best defines each family members'ethnicity): Single race category W White B Black/African American A Asian I American Indian/Alaskan Native P Native Hawaiian/Other Pacific Islander Multi-race category IW American Indian/Alaskan Native&White AW Asian&White BW Black/African American/White IB American Indian/Alaskan Native&Black/African American Single Hispanic/Multi-Hispanic combination race category(Select from ONLY one-either Hispanic only or a combination thereof) H Hispanic(only) HW Hispanic/White HB Hispanic/Black/African American HA Hispanic/Asian HAW Hispanic/Asian&White HBW Hispanic/Black/African American&White HIW Hispanic/American Indian/ HIB Hispanic/American Indian/Alaskan O Other(ONLY if none of the above racial Alaskan Native&White Native&Black/African American categories identifies you.) I certify that the statements above as well as those contained in my application and supporting documents provided by me as part of a request for assistance from the Palm Desert Housing Authority,for the purpose of purchasing a home are true and complete to the best of my knowledge and belief under penalty of perjury I understand the information will be verified. I understand that any false statements or failure to make any required disclosures may cause me to be disqualified from initial or continuing eligibility for housing assistance. «Buyer 1» Date «Buyer_2» Date Housing Authority Use Only Dote Received: / / Received by: LOT# HUD Income year used to qualify: Maximum Actual Housing Cost(MaxAHC): Minimum Actual Housing Cost(MInAHC): %of AMI: Actual Housing Cost( AclIAHC): %Income to Actual Housing Cost(%Incm): Very Low Low Medium Entered by: Date: «File Path Name» 1 THE HOUSING FINANCIAL DISCRIMINATION ACT OF 1977 FAIR LENDING NOTICE It is illegal to discriminate in the provision of or in the availability of financial assistance because of the consideration of: 1) Trends, characteristics or conditions in the neighborhood or geographic area surrounding a housing accommodation, unless the financial institution can demonstrate in the particular case that such consideration is required to avoid an unsafe and unsound business practice;or 2) Race, color, religion, sex, marital status, national origin or ancestry. It is illegal to consider the racial, ethnic, religious or national origin composition of a neighborhood or geographic area surrounding a housing accommodation or whether or not such composition is undergoing change, or is expected to undergo change, in appraising a housing accommodation or in determining whether or not, or under what terms and conditions, to provide financial assistance. These provisions govern financial assistance for the purpose of the purchase, construction, rehabilitation or refinancing of one-to-four unit family residences occupied by the owner and for the purpose of the home improvement of any one-to-four unit family residence. If you have questions about your rights, or in If you wish to file a complaint, contact the management of this financial institution or: Department of Real Estate at one of the following locations: 1515 Clay Street, Suite 702, Oakland, CA 94612-1402 320 W. 4th Street, Suite 350, Los Angeles, CA 90013-1105 or Secretary of Business, Transportation and Housing at following location: 980 9th Street, Suite 2450, Sacramento, California 95814 ACKNOWLEDGMENT & ACCEPTANCE OF DISCLOSURES Applicant Signature Date Applicant Signature Date («Buyer 1») («Buyer_2») uFile Path Name» 1 DEFINITION OF TRUTH-IN-LENDING TERMS ANNUAL PERCENTAGE RATE This is not the Note rate for which the borrower applied. The Annual Percentage Rate (APR) is the cost of the loan in percentage terms taking into account various loan charges of which interest is only one such charge. Other charges, which are used in calculation of the Annual Percentage Rate, are Private Mortgage Insurance or FHA Mortgage Insurance Premium (when applicable) and Prepaid Finance Charges (loan discount, origination fees, prepaid interest and other credit costs). The APR is calculated by spreading these charges over the life of the loan, which results in a rate higher than the interest rate shown on your Mortgage/Deed of Trust Note. If interest was the only Finance Charge, then the interest rate and the Annual Percentage Rate would be the same. PREPAID FINANCES CHARGES Prepaid Finance Charges are certain charges made in connection with the loan and which must be paid upon the close of the loan. These charges are defined by the Federal Reserve Board in Regulation Z and the charges must be paid by the borrower. Non-Inclusive examples of such charges are: Loan origination fee, "Points" or Discount, Private Mortgage Insurance or FHA Mortgage Insurance, Tax Service Fee. Some loan charges are specifically excluded from the Prepaid Finance Charges such as appraisal fees and credit report fees. Prepaid Finance Charges are totaled and then subtracted from the Loan Amount (the face amount of the Deed of Trust/Mortgage Note). The net figure is the Amount Financed as explained below. FINANCE CHARGE The amount of interest, prepaid finance charge and certain insurance premiums (if any) which the borrower will be expected to pay over the life of the loan. AMOUNT FINANCED The Amount Financed is the loan amount applied for less the prepaid finance charges. Prepaid finance charges can be found on the Good Faith Estimate. For example if the borrower's note is for$100,000 and the Prepaid Finance Charges total $5,000, the Amount Financed would be $95,000. The Amount Financed is the figure on which the Annual Percentage Rate is based. TOTAL OF PAYMENTS This figure represents the total of all payments made toward principal, interest and mortgage insurance (if applicable) over the life of the loan. PAYMENT SCHEDULE The dollar figures in the Payment Schedule represent principal, interest, plus Private Mortgage Insurance (if applicable) over the life of the loan. These figures will not reflect taxes and insurance escrows or any temporary buydown payments contributed by the seller. nFile_Path_Name» 1 TRUTH IN LENDING DISCLOSURE STATEMENT Creditor Applicant(s) Palm Desert Housing Authority «Maker» Mailing Address Property Address 73-510 Fred Waring Drive, Palm Desert, CA 92260 «Property_Address» Loan Number Preparation Date «Loan_Number» «Prep_Date» ANNUAL PERCENTAGE RATE FINANCE CHARGE Amount Financed Total of Payments The cost of your credit as a yearly rate. The dollar amount the credit will cost you. The amount of credit provided to you or The amount you will have paid after you have on your behalf. made all payments as scheduled. E 3.0% E$ 0.00* E$ 0.00* E$ 0.00* PAYMENT SCHEDULE: NUMBER MONTHLY PAYMENTS ARE NUMBER OF *AMOUNT MONTHLY PAYMENTS ARE OF *AMOUNT OF PAYMENTS DUE BEGINNING PAYMENTS OF DUE BEGINNING PAYMENTS PAYMENTS 1* $ 0.00* Only as noted in the loan documents *No payments are due on this loan provided the borrower remains in compliance with the terms of the Note,Trust Deed,and Unit Regulatory Agreement (together the "Loan Documents") under which this loan was obtained. In the event of a sale of the property, prior to the expiration of the term, the principal and interest will be due in accordance with the terms of the Loan Documents. DEMAND FEATURE: M This loan does not have a Demand Feature ❑ This loan has a Demand Feature ITEMIZATION: You have a right at this time to an ITEMIZATION OF AMOUNT FINANCED I/WE ❑ do ® do not want an itemization. REQUIRED DEPOSIT: ❑The annual percentage rate does not take into account your required deposit. VARIABLE RATE FEATURE: ❑ This loan has a Variable Rate Feature. Variable Rate Disclosures have been provided to you earlier. SECURITY: You are giving a security interest in: ASSUMPTION: Someone buying this property ❑cannot assume the remaining balance due under original mortgage terms ® may assume,subject to lender's conditions,the remaining balance due under original mortgage terms. FILING/RECORDING FEES: $ PROPERTY INSURANCE: ❑X Property/hazard insurance is a required condition of this loan. Borrower may purchase this insurance company acceptable to the lender. Hazard Insurance❑ is X❑ is not available through the lender at an estimated cost of for a MONTH or TERM. LATE CHARGES: If your payment is more than days late,you will be charged a late charge of %of the overdue payment. PREPAYMENT: If ou prepa this loan in full or in part,you [�] May will not have to pay a penalty. ❑ May will not be entitled to a refund of part of the finance charge. See your contract documents for any additional information regarding non-payment,default,required repayment in full before scheduled dates,and payment refunds and penalties. E means estimate. I/We hereby acknowledge reading and receiving a complete copy of this disclosure. I/We understand there is no commitment for the creditor to make this loan and there is no obligation for me/us to accept this loan upon delivery or signing of this disclosure. «Buyer_1» Date «Buyer_2» Date CALIFORNIA Insurance Disclosure Loan Number Date «Loan_Number» «Prep_Date» Borrower «Maker» Property Address «Property_Address» California Civil Code Section 2955.5(a) states: "No lender shall require a borrower, as a condition of receiving or maintaining a loan secured by real property, to provide hazard insurance coverage against risks to the improvements on that real property in an amount exceeding the replacement value of the improvements on the property." Your acknowledgment below signifies that this written notice was provided to you pursuant to the state statute. «Buyer_1» Date «Buyer 2» Date WALK-THROUGH INSPECTION RE: «Property_Address» Loan #: «Loan_Number» Case #: GENTLEMEN: I/WE HEREBY CERTIFY I/WE HAVE MADE A WALK THROUGH INSPECTION OF THE ABOVE SUBJECT PROPERTY WITHIN 5 WORKING DAYS OF THE CLOSING OF ESCROW. «Buyer 1» Date «Buyer_2» Date DISCLOSURE NOTICES Applicant(s) Property Address «Buyer 1» «Property_Address» «Buyer 2» AFFIDAVIT OF OCCUPANCY The Applicant(s)hereby certify and acknowledge that,upon taking title to the real property described above,their occupancy status will be as follows: }. SIE1 Primary Residence-Occupied by Applicant(s)within 30 days of closing. I=1 Secondary Residence-To be occupied by Applicants(s)at least 15 days yearly,as second home (vacation,etc.),while maintaining principal residence Q elsewhere. (Please check this box if you plan to establish it as your primary residence at a future date(i.e.,retirement). O Investment property-Not owner occupied. Purchased as an investment to be held or rented. The Applicant(s)acknowledge it is a federal crime punishable by fine or imprisonment,or both,to knowingly make any false statements concerning this loan application as applicable V under the provisions of Title 18,United Stated Code,Section 1014. V 0 Date Date Date Date FAIR CREDIT REPORTING ACT g An investigation will be made as to the credit standing of all individuals seeking credit in this application. The nature and scope of any investigation will be furnished to you upon written request made within a reasonable period of time. In the event of denied credit due to an unfavorable consumer report,you will be advised of the identity of the Consumer Reporting Agency making such report and of right to request within sixty(60)days the reason for the adverse action,pursuant to provisions of Section 615(b)of the Fair Credit Reporting Act. You U. have the right under the Fair Credit Reporting Act to know the information contained in your credit file at the Consumer Reporting Agency if an adverse action is taken on your loan application. Under Section 612 of the Fair Credit Reporting Act you have the right to obtain within 60 days of an adverse action a free copy of the report from the Consumer Reporting Agency. You also have the right to dispute the accuracy or completeness of any information in a consumer credit report furnished by the Consumer Credit Reporting Agency. EQUAL CREDIT OPPORTUNITY ACT The Equal Credit Opportunity Act prohibits creditors from discriminating against credit applicants on a basis of race,color,religion,national origin,sex,marital status,age(provided that the applicant has the capacity to enter into a binding contract);because all or part of the applicant's income derives from any public assistance program;or because the applicant has in Q good faith exercised any right under the Consumer Credit Protection Act. Income which you receive as alimony,child support or separate maintenance need not be disclosed to this O creditor unless you choose to rely on such sources to qualify for the loan,Income from these and other sources,including part-time or temporary employment,will not be discounted by V this lender because of your sex or marital status. However,we will consider very carefully the stability and probable continuity of any income you disclose to us. The Federal Agency that W administers compliance with this law concerning this creditor is: FHA LOANS ONLY CO) IF YOU PREPAY YOUR LOAN ON OTHER THAN THE REGULAR INSTALLMENT DATE,YOU MAY BE ASSESSED INTEREST CHARGES UNTIL THE END OF THAT MONTH. GOVERNMENT LOANS ONLY O RIGHT TO FINANCIAL PRIVACY ACT OF 1978-This is notice to you as required by the Right to Financial Privacy Act of 1978 that the Department of Housing and Urban Development J of Department of Veterans Affairs has a right of access to financial records held by a financial institution in connection with the consideration of administration of assistance to you. Financial records involving your transaction will be available to the Department of Housing and Urban Development or Veterans Affairs without further notice or authorization but will not be disclosed or released to another Government Agency or Department without your consent except as required or permitted by law. ›- 0 EMPLOYMENT CERTIFICATION J An approval for a loan is based upon employment that,income and obligations as shown on the loan application. At closing,the applicant and co-applicant/spouse,if applicable,are MQ required to execute a sworn statement affirming that they are currently working as previously reported,have not received notice of layoff nor have knowledge of pending layoff,and that i outstanding obligations are substantially the same as reported on the application. Should a change occur in your employment or financial status prior to loan closing,immediately notify W your loan officer,as it will be necessary to obtain approval of any changes. ANTI-COERCION STATEMENT The insurance laws of this state provide that the lender may not require the applicant to take insurance through any particular insurance agent or company to protect the mortgaged property. The applicant,subject to the rules adopted by the Insurance Commissioner,has the right to have the insurance placed with an insurance agent or company of his choice, provided the company meets the requirements of the lender. The lender has the right to designate reasonable financial requirements as to the company and the adequacy of the Z coverage. WW I have read the foregoing statement,or the rules of the Insurance Commissioner relative thereto,and understand my rights and privileges and those of the lender relative to the placing of such insurance. QI have selected the following agencies to write the insurance covering the property described above: I— ffn W Insurance Company Name Agent U Z Agent's Address Agent's Telephone Number FLOOD INSURANCE NOTIFICATION 2 Federal regulations require us to inform you that the property used as security for this loan is located in an area identified by Federal Emergency Management Agency(FEMA)as having Z special flood hazards and that in the event of damage to the property caused by flooding in a Federally-declared disaster,Federal disaster relief assistance,if authorized,will be available for the property. At the closing you will be asked to acknowledge your receipt of this information. If you have any questions concerning this notice,kindly contact your loan officer. IMPORTANT:Please notify your insurance agent that the"loss payable'clause for the mortgagee on both be hazard and flood insurance must read as follows,unless otherwise advised. z I/We hereby certify that I/we have read the Notices set forth above and fully understand all of the above. In addition to these Notices,I/we the applicant(s)certify that I/we have received O the'Buying Your Home-Settlement Costs and Helpful information°booklet and the'Consumer Handbook on Adjustable Rate Mortgages:(CHARM booklet). If applicable. I— Q V «Buyer_1» Date «Buyer_2» L- Date I- 0 Date Date «File Path Name» - - 1 Recording Requested By, and When Recorded, Mail To: Palm Desert Housing Authority 73-510 Fred Waring Drive Palm Desert, CA 92260 Attn: Director of Housing Free Recording Requested Pursuant To Government Code Section 27383 Space Above This Line for Recorder's Use APN(s): «APN Number» NOTICE OF AFFORDABILITY RESTRICTIONS ON TRANSFER OF PROPERTY Important notice to owners, purchasers, lenders, brokers, escrow and title companies, and other persons, regarding affordable housing restrictions on the real property described in this Notice: Restrictions are concurrently being recorded with respect to the property described below (referred to in this Notice as the "Property") which restrict the price and terms at which the Property may be sold. These restrictions may limit the sales price of the Property to an amount which is less than the fair market value of the Property. These restrictions limit the income of persons and households who are permitted to purchase the Property pursuant to California Health and Safety Code Section 33334.3(f)(1). This NOTICE OF AFFORDABILITY RESTRICTIONS ON TRANSFER OF PROPERTY (the "Notice"), is executed this «Day» day of «Month», «Year», by the Palm Desert Housing Authority ("Authority"), whose address is 73510 Fred Waring Drive, Palm Desert, CA and «Maker» ("Owner") whose address is «Property_Address», Palm Desert, CA, in connection with that certain Unit Regulatory and Lien Agreement, ("Restrictive Agreement") between Owner and the Authority. RECITALS A. Owner is the owner of that certain real property described in Exhibit "A", more commonly known as «Property_Address», in the City of Palm Desert, State of California bearing Assessor's Parcel Number(s) «APN_Number» (the "Property"). «File_Path_Namen B. Owner and Authority have entered into the Restrictive Agreement which is being recorded substantially concurrently herewith in the official records of the County Recorder of Riverside County ("County Recorder"). C. Capitalized terms used herein but not defined shall have the meanings set forth as described in the Restrictive Agreement. TERMS OF NOTICE 1 . Requirement for Recorded Notice. This Notice is being executed and recorded pursuant to California Health and Safety Code Section 33334.3(f)(3)(B). 2. Restrictive Agreement. This Notice is being recorded in the official records of the County Recorder substantially concurrently with the recordation of the Restrictive Agreement, which is incorporated herein by reference. 3. Recitation of Affordability Restrictions. Subject to the terms and conditions thereof, the Restrictive Agreement restricts the occupancy of the Property to occupancy by «LowMod» Income Households at an Affordable Housing Cost (as defined in the Restrictive Agreement) as the principal residence of the Owner (and subsequent owners) for a term which is 45 years from the recording of this document. IN WITNESS WHEREOF, this Notice has been executed as of the day and year first above written. "AUTHORITY" "OWNER" PALM DESERT HOUSING AUTHORITY, public body, corporate «Buyer 1» and politic «Buyer 2» By: Jan C. Harnik,Chairman «File_Path_Name,, 2 State of California ) ) ss. County of Riverside ) On , 2013, before me, M. G. Sanchez, a Notary Public, personally appeared Jan C. Harnik, who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. WITNESS my hand and official seal. (Seal) Signature State of California ) ) ss. County of Riverside ) On , 2013, before me, Public, personally appeared , who proved , a Notary to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. WITNESS my hand and official seal. (Seal) Signature <File_Path_Name)) 3 EXHIBIT "A" That certain real Property situated in the City of Palm Desert, County of Riverside, State of California, described as follows: LOT«Lot Number» OF TRACT MAP NO. 27546, IN THE CITY OF PALM DESERT, COUNTY OF RIVERSIDE, STATE OF CALIFORNIA, AS PER MAP RECORDED IN BOOK 249 OF MAPS, PAGES 63 THROUGH 68, INCLUSIVE, RECORDS OF SAID COUNTY. APN: «APN Number» «File_Path_Name» Exhibit A