HomeMy WebLinkAboutRes HA-61 - Proposed Sale of APN 634-061-024CITY OF PALM DESERT /PALM DESERT HOUSING AUTHORITY
JOINT CONSIDERATION
STAFF REPORT
REQUEST: REQUEST FOR APPROVAL OF THE PROPOSED SALE OF A
PROPERTY LOCATED AT 43-930 BLUEBERRY LANE (APN 634-
061-024), PALM DESERT (PURSUANT TO HEALTH AND SAFETY
CODE SECTION 33433(c)).
SUBMITTED BY: Jessica Gonzales, Management Analyst
DATE: March 13, 2014
CONTENTS: Housing Authority Resolution No. HA-6i
Draft Purchase and Sale Agreement for 43-930 Blueberry 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 a
property located at 43-930 Blueberry Lane, (APN 634-061-024) , 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- 61
approving the sale of the property pursuant to the attached draft Purchase
and Sale Agreement at the calculated resale price of $136,444 for 43-930
Blueberry Lane or the fair market value of the property, whichever is less.
By Minute Motion, that the City Council and Authority Board,
3. Approve a silent homebuyer assistance loan not to exceed forty percent
(40%) of the sales price for the 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
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 Agreement and
Staff Report
Public Hearing APN 634-061-024
March 13, 2014
Page 2 of 3
any ancillary documents necessary to effectuate the sale and actions taken
herewith.
Background
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 former Palm Desert Redevelopment Agency
("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 a single-family residence located at 43-930
Blueberry Lane in the Desert Rose Development (the "Property") to a qualified low or
moderate income household.
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 property meets the definition of a small housing project in that the Housing Authority
will only sell the property to a qualified household (including persons or families) of low or
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 Agreement.
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 the 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 property and approve the sale of the property to a qualified household
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
G:IHOUSING\Patty Leon1JMM1staff report\HOUSING AUTHORITY 1SR - HA -City 33433(c) Public Hearing 43930 Blueberry Lane.doc
Staff Report
Public Hearing APN 634-061-024
March 13, 2014
Page 3of3
approve a silent homebuyer assistance loan for the 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
property to the newly negotiated sales price, the costs of the transaction, and the amount of
the assistance loan from the applicable funding sources. The sale of this property will
reduce the monthly costs associated with maintaining the real property inventory.
Submitted by:
Jes
Paul GibDirector of Finance
Appr
val:
ment Analyst
Department Head:
i
Wohlmuth, City Manager/Executive Director
CITY COIJNCILAVTION
APPROVED .DENTED
RECEIVED OTHER / /(Y(R d
/ter%: s . 1-11/ (41
NIEETI G DAT /1 - /3�-/,9 /q
AYES.I9 J'nfl, ttorniI�,Spiei3e . to0,,4T0_0n,er^ C
NOES: _LZ60(' �l
ABSENT: ('JLV1e
ABSTAIN: /IN
VERIFIED BY: ( l/r�.\
Q, a iginal on File with City' ' crk's Office
t M. Moore, Director of Housing
BY HOUSG AUTH 5 ��
f:ke with City
G:IHOUSING\Patty Leon1JMMlstaff report\HOUSING AUTHORITYISR - HA -City 33433(c) Public Hearing 43930 Blueberry Lane.doc
RESOLUTION NO. HA - 6i
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 a residential structure located at 43-930
Blueberry Lane in the City of Palm Desert, California (the "Property"). The Housing
Authority proposes to sell the Property to a qualifying person or household 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.
12612-aK,115231+0.2 cou:26.1-C-i''t5241:70ae c G 1HOUSING1Petty LeonUMMlstattreportlRESOLUTIONS1HA Reso Appromng sale of smell housing project DR 43-930 Blueberry Mtg of 3-13-
RESOLUTION NO. HA - 61
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 Property 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 Property
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 13TH day of MARCH 2014 by the
following vote, to wit:
AYES:
NOES:
ABSENT:
ABSTAIN:
ATTEST:
RACHELLE D. KLASSEN, SECRETARY
PALM DESERT HOUSING AUTHORITY
VAN G TANNER, CHAIRMAN
-2-
CALIFORNIA44.
ilkASSOCIATION
lir OF REALTORS`
DRAFT
CALIFORNIA
RESIDENTIAL PURCHASE AGREEMENT
AND JOINT ESCROW INSTRUCTIONS
For Use With Single Family Residential Property — Attached or Detached
(C.A.R. Form RPA-CA, Revised 4/13)
Date February 177_ 2014
1. OFFER:
A. THIS IS AN OFFER FROM A qualified buyer of lower . or moderate income ("Buyer").
B. THE REAL PROPERTY TO BE ACQUIRED is described as 43930 Blueberry I,n. Palm Desert. Ca 92260
, Assessor's Parcel No. 634-061-024 , situated in
Pa jm .Desert , County of Ri versidp , California, ("Property"),
C. THE PURCHASE PRICE offered is One Hundred Thirty -Six Thousand. Four Hundred Forty -Four
Dollars$ 13E.444,Q0
D. CLOSE OF ESCROW shall occur on 60 days o 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"
(CAR. Form AD).
B. POTENTIALLY COMPETING BUYERS AND SELLERS: Buyer and Seder 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 seders with competing properties of interest to this Buyer.
C. CONFIRMATION: The following agency relationships we 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 excusivey; or ❑ 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 $ 250.00
(1) Buyer shad deliver deposit directly to Escrow Holder by personal check, 0 electronic funds transfer, 0 other
within 3 business days after acceptance (or ® Other 15 days );
OR (2) (If checked) 0 Buyer has given the deposit by personal check (or n
to the agent sub ml ing the offer (or ton ),
made payable to . The deposit shall be held
unlashed 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 fl
It 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 Delivered.
C. LOAN(S):
(1) FIRST LOAN: in the amount of $17212
This loan will be conventional financing or, if checked, 0 FHA, 0 VA, ❑ Seller (C.A.R. Form SFA),
0 assumed financing (C.A.R. Form PAA), 0 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 'Y° of the loan amount.
(2) 0 SECOND LOAN: in the amount of $ TAP
This loan will be conventional financing or, it checked, 0 Seller (C.A.R. Form SFA), 0 assumed financing
(C.A.R. Form PAA), ® Other _go ,?Q . 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 (C.A.R. Form FVA) of any lender -required repairs or costs that Buyer
requests Seller to pay for or otherwise correct. Seller has no obligation to pay or satisfy lender requirements
unless otherwise agreed in writing.
D. ADDITIONAL FINANCING TERMS:. Desert Housing Authority and City of Palm
Desert may aive clown payument assistance. provided buyer oualifies.
E. BALANCE OF DOWN PAYMENT OR PURCHASE PRICE in the amount of $ 136.194. 00
to be deposited with Escrow Holder within sufficient We to close escrow.
F. PURCHASE PRiCE (TOTAL): $ 136, 444. 00
Buyer's initials (,X ) ( ) Seder's Initials (X ) (X )
02013. California Assodawn d REN.TORSO. Inc.
RPA-CA REVISED 4/13 (PAGE 1 OF 8)
IReviewed by Date
coda laver.
OPreuwTr
CALIFORNIA RESIDENTIAL PURCHASE AGREEMENT (RPA-CA PAGE 1 OF 8)
iAgent: John Osborne Phone: (780) 921-2121 Fax: (780) 922-4387 Prepared using zipForm® software I
Broker: CENTURY 21 Osbome Realty 41 Orquldla Ct Palm Desert, CA 92260
43930 Blueberry Ln
Property Address: Palm Desert, Ca 92260
DRAFT
Date: February 17, 2014
G. VERIFICATION OF DOWN PAYMENT AND CLOSING COSTS: Buyer (or Buyer's tender or loan broker pursuant to 3H(1) shall, within 7 (or
❑ ) Days After Acceptance, Defiver 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 ❑ , , ) Days After Acceptance, Buyer shall Deliver to Seiler a letter from lender or loan
broker stating that, based on a review of Buyers written application and credit report, Buyer is prequalified or preapproved for any NEW loan
specified in 3C above. (If checked, 0 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 (11 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, 0 is NOT) contingent upon a written appraisal of the Property
by a licensed or certified appraiser at no less than the specified purchase price. It there is a loan contingency, Buyer's removal of the loan
contingency shall be deemed removal of this appraisal contingency (or, 0 if checked, Buyer shall, as specified in paragraph 1413(3), in writing
remove the appraisal contingency or cancel this Agreement within 17 (or ) Days After Acceptance).1 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. 0 ALL CASH OFFER (if checked): Buyer shall, within 7 (or❑ ) Days After Acceptance, Deliver to Seller written verification of
sufficient funds to close this transaction. (If checked, 0 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) Seiler 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 here, 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) 0 Buyer 0 Seller shall pay to have septic or private sewage disposal systems inspected
(3) 0 Buyer 0 Seiler shall pay to have domestic wells tested for water potability and productivity
(4) 0 Buyer (21 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) 1;. Buyer 0 Seller shalt pay for the following inspection or report Howe inspection Reggrt
B. GOVERNMENT REQUIREMENTS AND RETROFIT:
(1) 0 Buyer f; 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 govemment retrofit standards, inspections and
reports if required as a condition of dosing escrow under any Law.
C. ESCROW AND TITLE:
(1) ►;, Buyer ® Seller shall pay escrow fee,frach to paw his/her om.
Escrow Holder shall be Foresite Escrow
(2) 0 Buyer 12 Seller shall pay for owner's title insurance policy specified in paragraph 12E
Owner's tide policy to be issued by First American Title
(Buyer shall pay for any title insurance po11cy 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 shalt pay HOA document preparation fees Related Fees
(5) 0 Buyer 0 Seller shall pay for any private transfer fee
(6) 0 Buyer ® Seder shall pay the cost, not to exceed $ 350.00
issued byifigierican How vinyl , 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
, of a one-year home warranty plan,
Buyer's Initials (X ) ( ) Setter's Initials (X___ ) (X )
RPA-CA REVISED 4/13 (PAGE 2 OF 8) Reviewed by Date rerea anrr
CALIFORNIA RESIDENTIAL PURCHASE AGREEMENT (RPA-CA PAGE 2 OF 8) 43930 Blueberry
DRAFT
43930 Blueberry Le
Property Address: Palm Desert, C'a 92260 _ Date: February 17, 2014
5. CLOSING AND POSSESSION:
A. Buyer intends (or 0 does nol intend) to occupy the Property as Buyers primary residence.
8. Seller-occupled or vacant property: Possession shall be delivered to Buyer al 5 PM or (Q Q AM Q PM) on the date of Close
Of Escrow; Q on _ _ ; or 0 no later than Days Alter 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 aanoe with rent control and other applicable Law, you may
be In breach of this Agreement.
OR (ii) (if checked) 0 Tenant to remain In possession. (C.A.R. Form PAA, paragraph 3)
D. At Close 01 Escrow, (I) Seger 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 01 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.
g. 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 ordnance location (C.A.R. Form SPO or SSD).
(2) Buyer shall, within the time specified in paragraph 14B(1), retum 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 Atter Delivery by deposit in the mail, by
giving written notice of cancellation to Seiler or Seller's agent.
(5) Note to Buyer and Seller: Waiver of Statutory and Lead Disclosures is prohibited by Law.
8. 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 Ftooclng (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, Seiler shall Deliver to Buyer or qualified
substitute, an affidavit suffident 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 webslte. 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.)
E. NOTICE REGARDING GAS AND HAZARDOUS LIQUID TRANSMISSION PIPEUNES: This notice is being provided simply to inform you that
information about the general location of gas and hazardous liquid transmission pipelines is available to the public via the National Pipeline
Mapping System (NPMS) Internet Web site maintained by the United States Department of Transportation at http:/Avww.npms.phmsa.dot.gov/. To
seek further information about possible transmission pipelines near the Property, you may contact your local gas utility or other pipeline operators
in the area. Contact information for pipeline operators is searchable by ZIP Code and county on the NPMS Internet Web site.
7. CONDOMINIUM/PLANNED DEVELOPMENT DISCLOSURES:
A. SELLER HAS: 7 (or ❑ ) 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 SPO 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; (ill) 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, "CI Disclosures"). Seller shall itemize and Deliver to Buyer all CI Disclosures received from the HOA
and any Cl Disclosures in Sellers possession. Buyers approval of CI Disclosures is a contingency of this Agreement as specified in paragraph
148(3).
8. ITEMS INCLUDED IN AND EXCLUDED FROM PURCHASE PRICE:
A. NOTE TO BUYER AND SELLER: Items listed as included or excluded in the MIS, flyers or marketing materials are not included in the purchase
price or excluded from the sale unless specified in 8B or C.
8. ITEMS INCLUDED IN SALE:
(1) Ail EXISTING fixtures and fittings that are attached to the Property;
(2) EXISTING electrical, mechanical, fighting, plumbing and heating fixtures, ceiling fans, fireplace inserts, gas Togs 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/conditloners, pootspa equipment, garage door openers/remote controls, mailbox,
in -ground landscaping, trees/shrubs, water softeners, water purifiers, security systems/alarms; (If checked) ® stove(s), Q refrigerator(s);
Buyer's Initials (X ) (
RPA-CA REVISED 4/13 (PAGE 3 OF 8)
CALIFORNIA RESIDENTIAL PURCHASE AGREEMENT (RPA-CA PAGE 3 OF 8)
Seller's initials (X ) (X_ )
Reviewed by
Date
OPPOIMMTV
43930 Blueberry
DRAFT
43930 Blueberry Za
Property Address: Palm Deserts Ca _ 92260 _ _ Date: February 17, 2014
(3) The following additional items: Wasi. /Qzver _-_
(4) Seller represents that all items included in the purchase price, unless otherwise specified, are owned by $etier.
(5) Ail 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 fiat 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
9. CONDITION OF PROPERTY: Unless otherwise agreed: (1) 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; (11) the Property, including pool, spa, landscaping and grounds, is to be
maintained in substantially the same condition as on the date of Acceptance; and (iti) all debris and personal property not included in the sate shall
be removed by Close O1 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 148, based upon iniormation discovered in those inspections: (I)
cancel this Agreement; or (ti) request that Seer 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(i), 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 10:
(I) inspect for lead -based paint and other lead -based paint hazards; (It) inspect for wood destroying pests and organisms; (iII) review the
registered sex offender database; (iv) confirm the insurability of Buyer and the Properly; 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 ail Buyer investigations. Buyer shall (1) as specified in paragraph 14B, complete Buyer investigations
and, either remove the contingency or cancel this Agreement, and (11) 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; (1i) repair all damage
arising from Buyer Investigations; and 011) indemnify and hold Seller harmless from all resulting liability, claims, demands, damages and costs.
Buyer shall carry, or Buyer shall require anyone acting on Buyer's behal to carry, polities of liability, workers' compensation and other applicable
insurance, defending and protecting Seiler 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 Nonresponsloility" (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 of this Agreement.
11. SELLER DISCLOSURES; ADDENDA; ADVISORIES; OTHER TERMS:
A. Seller Disclosures (If checked): Seller shall, within the time saecitied in paragraph 14A, complete and provide Buyer with a:
f, Seller Property Questionnaire (C.A.R. Form SPO) OR ® Supplemental Contractual and Statutory Disclosure (C.A.R. Form SSD)
B. Addenda (If checked): ® Addendum # 1 (C.A.R. 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 Properly Monument Addendum (C.A.R. Form SWPI)
❑ Short Sale Addendum (C.A.R. Form SSA) 0 Other
C. Advisories (If checked): ® Buyer's Inspection Advisory (C.A.R, 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 tide 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 tithe 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 (11) those matters which Seiler has agreed to remove In Wirt ing.
C. Within the time specified In paragraph 14A, Seiler 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 tide company, at Buyer's request, can provide information about the
avaitabhlity, desirabhity, coverage, and cost of various tithe 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.
Buyer's Initials (X ) ( ) Seller's Initials (X ) (X
RPA-CA REVISED 4/13 (PAGE 4 OF 8) Reviewed by Date OPPOWINITY
CALIFORNIA RESIDENTIAL PURCHASE AGREEMENT (RPA-CA PAGE 4 OF 8) 43930 Blueberry
DRAFT
43930 Blueberry Ln
Property Address: Palm Desert, Ca 92260 Date: February 17, 2014
13. SALE OF BUYER'S PROPERTY:
A. This Agreement is NOT contingent upon the sale of any properly 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.
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 1S1 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, 11 A and 8, and 12A. 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 appikrebfe information, which Buyer receives from Seller; and
approve all matters affecting the Property; and
(11) Deliver to Seiler Signed Copies of Statutory and Lead Disclosures Delivered by Seiler in accordance with paragraph 6A.
(2) Within the time specified In 148(1), Buyer may request that Seller make repairs or lake 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) By the end of the time specified in 148(1) (or as otherwise specified in this Agreement), Buyer shall, Deliver to Seller a removal of the
applicable contingency or cancellation (C.A.R. Form CR or CC) of this Agreement. 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 148(1), whichever is later, to Deliver to Seller a removal of the applicable contingency or cancellation of this
Agreement.
(4) Continuation of Contingency: Even alter the end of the time specified in 14B(1) and before Seller cancels, if at all, pursuant to 14C, Buyer
retains the right to either (i) in writing remove remaining condngendes, or (II) cancel this Agreement based on a remaining contingency. 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: Ii, by the time specified in this Agreement, Buyer does not 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, Seiler shall authorize retum of Buyer's deposit.
(2) Seiler right to Cancel; Buyer Contract Obligations: Seller, after first Delivering to Buyer a NBP may cancel this Agreement for any of the
following reasons: (1) if Buyer fails to deposit fund as required by 3A or 38; (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 tails to
Deliver a letter as required by 3H; (v) 11 Buyer fails to Deliver verification as required by 3G or 3J; (vl) if Seller reasonably disapproves of the
verification provided by 3G or 3J; (vit) if Buyer fails to retum Statutory and Lead Disclosures as required by paragraph 6A(2); or (vill) if Buyer
fails to sign or initial a separate liquidated damages form for an increased deposit as required by paragraphs 3B and 25. In such event, Seiler
shall authorize return of Buyer's deposi.
(3) Notice To Buyer To Perform: The NBP shall: (I) be in writing; (II) be signed by Seller; and (Ili) give Buyer at least 2 (or 0 ) Days
After Delivery (or until the time specified in the applicable paragraph, whichever occurs last) to lake the applicable action. A NBP may not be
Delivered any earlier than 2 Days Prior to the expiration of the applicable lime 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 conclusively be deemed to have: (I) completed all Buyer
Investigations, and review of reports and other applicable information and disclosures pertaining to that contingency or cancellation right; (II)
elected to proceed with the transaction; and (Ni) assumed ail liability, responsibifity and expense for Repairs or corrections pertaining to that
contingency or cancellation right, 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 Deliver to the other a demand to close escrow (C.A.R. Form DCE).
F. EFFECT OF CANCELLATION ON DEPOSITS: If Buyer or Seiler gives written notice of cancellation pursuant to rights duly exercised under the
terms of this Agreement, Buyer and Seiler 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 ea to who is entitled to the deposited funds (Civil Code g1057.3).
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 Seiler 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; (10 prepare a written statement indicating the Repairs performed by Seller and the date of such
Repairs; and (NI) 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: (1) the Property is maintained pursuant to paragraph 9; (11)
Repairs have been completed as agreed; and (lit) 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 Oi 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 now a 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 now a Hen 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 (11) for period 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. Proration shall be made based on a 30-day month.
Buyer's Initials (X ) ( ) Seller's Initials (X )
RPA-CA REVISED 4/13 (PAGE 5 OF 8) (Reviewed by Date
CALIFORNIA RESIDENTIAL PURCHASE AGREEMENT (RPA-CA PAGE 5 OF 8)
tan Twn
43930 Blueberry
DRAFT
43930 Blueberry La
Property Address: Palm Desert, Ca 92260 Date: February 17, 2014
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 10 persons and entities authorized to use the
information on terms approved by the MLS.
20. EQUAL HOUSING OPPORTUNITY: The Properly is sold in compliance with federal, state and local antl-discriminalion Laws.
21. ATTORNEY FEES: In any action, proceeding, or arbitration between Buyer and Seiler arising out of this Agreement, the prevailing Buyer or Seller
shall be entitled to reasonable attomey 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 Ills 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 Ot 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 Oi
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", "Dellvered" or "Delivery", means and shall be effective upon (I) personal receipt by Buyer or Seiler or the individual Real Estate
Licensee for that principal as specified In paragraph D of the section titled Real Estate Brokers on page 8, regardless of the method used (Le.
messenger, mail, email, fax, other); 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.
J. "Lew" means any law, code, statute, ordinance, regulation, rule or order, which is adopted by a controlling city, county, slate or federal legislative,
judicial or executive body or agency.
K. "Repairs" means any repairs (inducting 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 from Buyer's or Seller's funds, or
both, as applicable, the Broker's compensation provided for in such agreement(s). The terms and conditions of this Agreement not set forth 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 fl
). 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 paragraph 23 and paragraph D of the section titled Real
Estate Brokers on page 8. Buyer and Seller irrevocably assign to Brokers compensation specified in paragraph 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 told 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 Holier, or (11) if Buyer and 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 (X ) ( ) Seller's Initials ( X
RPA-CA REVISED 4/13 (PAGE 6 OF 8) Reviewed by
CALIFORNIA RESIDENTIAL PURCHASE AGREEMENT (RPA-CA PAGE 6 OF 8)
Date
) ( X
OPPORTUNITY
43930 Blueberry
43930 Blueberry Ln
Property Address: Palm Deserter Ca 92260
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 arbitrafion or court action. Buyer and Seiler 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 atter, 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 tees, 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 patties 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 arbttrator(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 INITIAUNG 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 SUBIWT DISPUTES ARISING OUT
OF THE MATTERS INCLUDED IN THE 'ARBITRATION OF DISPUTES' PROVISION TO NEUTRAL ARBITRATION."
I Buver's Initials / Seller's Inidais /
C. ADDITIONAL MEDIATION AND ARBITRATION TERMS:
(1) EXCLUSIONS: The following matters are 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; pit) the filing or enforcement of a mechanic's Ilen; 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 nor violation of the mediation and
arblration provisions.
(2) BROKERS: Brokers shall not be obligated nor 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, 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. Buyer has read and acknowledges receipt of a Copy of the offer and agrees to
the above confirmation of agency relationships. 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 wile 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 Calitomia. Neither this Agreement nor any provision in ft
may be extended, amended, modified, altered or changed, except in writing Signed by Buyer and Seiler.
DRAFT
Date: February 17, 2014
25. LIQUIDATED DAMAGES: 1f 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 UQUIDATED
DAMAGES PROVISION FOR ANY INCREASED DEPOSIT (C.A.R. FORM RID).
{ Buyer's Initials / Seller's Initials
Buyer's Initials (X _ ) ( ) Seller's Initials (X
RPA-CA REVISED 4/13 (PAGE 7 OF 8) I Reviewed by Date
CALIFORNIA RESIDENTIAL PURCHASE AGREEMENT (RPA-CA PAGE 7 OF 8)
43930 Blueberry
DRAFT
43930 Blueberry 1m
Property Address: Palm Desert1Ca 92260 _._ -... .-_ _..--_- -_-. -..- Date: February 17, 2014
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 AM is signed
PM, n by Buyer (or, 11 checked,(❑ by
0 e)).
Date
BUYER X
& Qualified buyer of lower
(Print name)
(Address)
Date
BUYER
g.; moderato income
(Print name)
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 Properly 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
0 (If checked) SUBJECT TO ATTACHED COUNTER OFFER (C.A.R. Form CO) DATED:
Date Date
SELLER X SELLER X
?alsl Desert Housina Authoritv
(Print name) (Print name)
73-510 Fred Warina Drive, Palm Desert, CA 92260
(Address)
( / ) CONFIRMATION OF ACCEPTANCE: A Copy of Signed Acceptance was personalty 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 personalty 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; k 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. 11 specified in paragraph 3A, Agent who submitted the otter 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: (1) the amount specified in the MLS, provided Cooperating Broker is a Participant o1 the MLS in
which the Property is offered tor sale or a reciprocal MLS; or (11) 0 (if checked) the amount specified in a separate written agreement (CAR. Form
CBC) between Listing Broker and Cooperating Broker. Declaration of License and Tax (C.A.R. Form OLT) may be used to document that tax reporting
will be required or that an exemption exists.
Real Estate Broker (Selling Firm) centuxv 21 Osborne Realty DRE Uc. #01312235
By John Osborne DRE Uc. # 09852775 Date
Address 41 Orau#dia Cat_ City Palm Desert State CA Zip 92260
Telephone l760)567-2407 Fax (760194-4387 E-mailiohm .osborne@centurr2Z.acm
Real Estate Broker (Listing Firm) Century 21 Osborne itow,A1ty DRE Uc. # 01312235
By .Milt Osborne DRE Uc. # 00852775 Date
Address 41 Qga t4ta Qt City Palm Desert State Ca Zip 92280
Telephone (760) 567-2407 Fax (760) 922-4387 E-mail iohn. osborneAcenturv21. can
ESCROW HOLDER ACKNOWLEDGMENT:
Escrow Holder acknowledges receipt of a Copy of this Agreement, (If checked, ❑ a deposit in the amount of $ ),
counter otter number ❑ Seller's Statement of Information and
, 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.
Escrow Holder is advised that the date of Confirmation of Acceptance of the Agreement as between Buyer and Seller is
Escrow Holder Escrow #
By Date
Address
Phone/Fax/E-mall
Escrow Holder is licensed by the Califomia Department of 0 Corporations, 0 Insurance,❑ Real Estate. License #
I
PRESENTATION OF OFFER: ( ) Listing Broker presented this offer to Seller on
Broker or Designee Initials
(date). I
I REJECTION OF OFFER: ( ) ( ) No counter offer is being made. This offer was rejected by Seller on (date).
Seller's Initials
0 2013, CallonWa Association o1 REALTORSe, Inc. United States copyright law (The t7 U.S. Code) forbids the unauthorized distribution, display and reproduction of this form, or any portion thereof, by
photocopy machine or any other means, Including facsimile or computerized formats.
THIS FORM HAS BEEN APPROVED BY THE CALIFORNIA ASSOCIATION OF REALTORSO (CAR.). NO REPRESENTATION IS MADE AS TO THE LEGAL VAUDITY OR ACCURACY 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
Published and Distributed by:
REAL ESTATE BUSINESS SERVICES, INC. Reviewed by
a subsilary of the CALFORNIA ASSOCiA770N OF REALTORSB
• 525 South Virgil Avenue, Los Angeles, Cafifoinia 90020 Broker or Designee Date
REVISION DATE 4/13
CALIFORNIA RESIDENTIAL PURCHASE AGREEMENT (RPA-CA PAGE 8 OF 8)
Ofomw Y
43930 Blueberry
DRAFT
CALIFORNIA
` ASSOCIATION BUYER'S INSPECTION ADVISORY
N. OF REALTO RSi' (C.A.R. Form BIA-A, Revised 10/02)
Property Address: 43930 Baueberrx _ZT?.c. _Palm Desert, Ca 92260 _ ("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 Seiler. 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. Seiler 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 10 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 UMITED 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 salted 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 (X ) (
machine or any other means, Including facsimile or computerized formats. Seller's Initials (X )
Copyright ® 1991-2004, CALIFORNIA ASSOCIATION OF REALTORS®,
INC. ALL RIGHTS RESERVED. I Reviewed by Dale-1
BIA-A REVISED 10102 (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 zipForinS software
Broker: CENTURY 21 Osborne Realty 41 Orquldla Ct Palm Desert, CA 92260
MALICOSSIC
SPPORTULITY
DRAFT
Property Address: 43930 Blueberry L.n, Palm Desert, Ca 92260 �.._ Date: February 17, 2014
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
quatlty, adequacy, condition, and performance of welt 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 conceming 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 govemment services, availability, adequacy and cost of any speed -wired, wireless internal 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: (1) 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 pperformance, 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 responsiule 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; (vii) Shall not be responsible for inspecting public records or
permits concerning the tide or use of Property; (vli) Shall not be responsible for identifying the location of boundary lines or other items affecting title;
(WI) 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.
X
Buyer Signature Date Buyer Signature Date
A qualified buyer of _lower or moderate income
X X
Seller Signature Date Seller Signature Date
Palm Desert Housing Authority
THIS FORM HAS BEEN APPROVED BY THE CALIFORNIA ASSOCIATION OF REALTORSS (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 evadable for use by the entire real estate Industry. It Is not intended to identify the user as a REALTORS. REALTORS is a regwstered cdtective membership mark
which may be used only by members of the NATIONAL ASSOCIATION OF REALTORSO who subscribe to Its Code of Ethics.
Pub6ahed end Distributed by:
REAL ESTATE BUSINESS SERVICES, INC.
a subsiday of the Cations Assaoiabon of REALTORS,
, 525 South Avenue, Los Angeles, Caifamia 90020
BIA-A REVISED 10/02 (PAGE 2 OF 2) BUYER'S INSPECTION ADVISORY (BIA-A PAGE 2 OF 2)
Reviewed by Date
trrPms 1* Paiv
43930 Blueberry
S _ ASSOCIATION
ADDENDUM
(C.A.R. Form ADM, Revised 4/12) No. 1
DRAFT
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, 0 Other
dated November 25, 2013 , on property known as_ 43930 Blueberry In
Palm Desert, Ca 92260
In which A qualified buyer of lower , or moderate income Is referred to as ("Buyer/Tenant")
and Palm Desert Housing Authori ty
is referred to as ("Seller/Landlord").
The sale of this property is subiect to a puttiic hearing scheduled for March 13. 2014.
This property will have a Restrictive Agreement that Buyer must execute apd will be
recorded against the subiect property in favor of the Palm Desert Housing AutLiority
f "Housina Authority") with restrictions including but not 1i.B,ited to affor4 kility, primary
residency requirements. resale price restrictions and a Riaht of First Refusal to the
Mousing Authority, among other restrictions.
The City of Palm Desert and the Housing Authority may provide down payment assistance to
ensure an affordable housing cost; such loan may be silent for all or Dart 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 approv411.
Buyer certify that the statements contained in the Questionnaire and shorting documents
provided by Buyer as Dart of a reauest for assistance from the City of Palm Desert. Palm
Desert Housing Authority, are true and coaplete• and have been used to determine Buyer as a
Qualified Buyer for the purpose of purchasing this property.
As Seller is a,_goverament entity and not subiect to real proverty taxes. no proration will
be made through escrow for this purpose Buyer is responsible from,re date of escrow
closing for real property taxes due and will receive a Property Tax Bill direct from the
Tax Collector's Office.
Buyer agrees to transfer all utilities includj_pr natural aas. water. and electric
immediately upon close of escrow_
Notices shall be address as provided herein for the respective parties. provided that if
any Party gives notice in writing of a change of name or address. notices to such Party
shall thereafter be given as demanded in the notice.
.Seller
:
The foregoing terms and conditions are hereby agreed to, and the undersigned acknowledge receipt of a copy of this document.
Date Date
Buyer/Tenant X Seller/Landlord X
A qualified buyer of lower Palm Desert Housing Authority
Buyer/Tenant
or moderate income
Seller/Landlord X
The copyright laws of the United Stales (Title 17 U.S. Cade) 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 I5 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 REALTOFI. REALTORta is a registered co/eelve membership mark
which may be used only by members of the NATIONAL ASSOCIATION OF REALTORSG who subscribe to its Code of Ethics.
Published end Distributed by.
REAL. ESTATE BUSINESS SERVICES, INC.
a subseey olte Callonms Association of REALTORS8
,, 525 South Virgil Avenue. Los Angeles, Calfarnia 90020
ADM REVISED 4/12 (PAGE 1 OF 1)
Reviewed by Date
ADDENDUM (ADM PAGE 1 OF 1)
IAgent: John Osborne Phone: (760) 921-2121 Fax: (760) 922-4387
Broker: CENTURY 21 Osborne Realty 41 Orquidla Ct Palm Desert. CA 92260
Prepared using zipFormai software I
DRAFT
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 "Restrictive
Agreement") is entered into this «Dav» 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 Restrictive 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,
DRAFT
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 Restrictive 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 Restrictive Agreement.
2. Definitions. For purposes of this Restrictive Agreement, the terms listed
below shall have the meanings thereinafter specified.
(a) AMI. As used herein and throughout this Restrictive 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 Verv-
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 PathName,, 2
DRAFT
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
Restrictive 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 Restrictive 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 Restrictive 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
Restrictive Agreement. The Owner's repayment of the Loan shall not terminate this Restrictive
Agreement.
.File Path Namen 3
DRAFT
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 Restrictive
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 Mortaaaes.
(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 Restrictive 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).
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(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 Restrictive Agreement.
(d) Refinancina 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 Restrictive 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 Restrictive Agreement and the Deed of Trust, and the
Authority agrees that, in such event, such deed of trust recorded prior hereto shall be superior
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to this Restrictive Agreement and the Deed of Trust. A default of such deed of trust will also
be deemed a 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 Restrictive 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 Restrictive 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.
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(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.
As part of the Authority's option and in accordance with Section 15 herein,
all items in the home which are affixed, including but not limited to ceiling fans, light fixtures,
and window coverings, are included in the sales price already established and must remain in
the unit. Any items that have been added to the home, the function of which will not affect the
home's use (such as decorative items) may be removed however, if such items leave marks,
holes, or impressions, etc. due to their removal, the location must be restored to the original
condition. The Owner will also be required to maintain, through close of escrow, any items
necessary to keep the home's appearance and mechanical function in tact including but not
limited to all front and back yard landscaping, connections to utilities (natural gas, water,
electric), and overall maintenance. In the event the home is not maintained or restored, any
cost associated to bring the home into the original condition may be adjusted as necessary
through escrow.
(b) Authority's Failure to Close Followina 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.
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(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
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 sixty (60) 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 forty-five (45) 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
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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 Restrictive 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
Restrictive Agreement and the Deed of Trust; and if Authority purchases such property and
resells the Unit, such acquisition shall not operate to merge this Restrictive 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
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 Restrictive 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 Restrictive 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
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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.
(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 Restrictive 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
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Authority to verify the information set forth herein and to determine that the Affordable Housing
Cost restrictions of this Restrictive 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.
As part of any sale and in accordance with Section 15 herein, all items in the
home which are affixed, including but not limited to ceiling fans, light fixtures, and window
coverings, are included in the sales price already established and must remain in the unit. Any
items that have been added to the home, the function of which will not affect the home's use
(such as decorative items) may be removed however, if such items leave marks, holes, or
impressions, etc. due to their removal, the location must be restored to the original condition.
In the event the home is not maintained or restored, any cost associated to bring the home into
the original condition may be adjusted as necessary through escrow.
10. Notification Prior to Mortaaae. 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:
term, and loan fees.
(a) Name and address of lender.
(b) Terms of the loan, including, but not limited to, principal, interest rate,
(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.
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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
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 Restrictive 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
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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 Restrictive 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
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 Aaainst 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.
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16. Default. If either party defaults with regard to any of the provisions of this
Restriction 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).
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
Restrictive Agreement, the covenants established in this Restrictive 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 Restrictive 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 Restrictive Agreement is not intended as a
speculative financial investment.
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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
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 Headinas. 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 Restrictive 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
«File Path Namex 15
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part, any of the covenants, easements, or other restrictions contained in this Restrictive
Agreement.
28. Successors and Assians. 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)
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IN WITNESS WHEREOF, the parties hereto have executed this Restrictive 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»
«Chairman», Chairman
Attest:
Rachelle D. Klassen, Secretary
aFile Path Name, 17
State of California
County of Riverside
) SS.
)
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On , 2013 before me, M. G. Sanchez, a Notary Public, personally
appeared «Chairman» and Rachelle D. Klassen, 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,,
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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»
aFile Path Name» Exhibit A
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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 Nameg 1
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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
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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
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RECORDING REQUESTED BY
AND WHEN RECORDED MAIL TO
Palm Desert Housing Authority
73-510 Fred Waring Drive
Palm Desert, California 92260
Attn: Housing Department.
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.
«File Path Name. 1
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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 Name, 2
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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).
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(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.
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(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
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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
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State of California
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
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 Namer
DRAFT
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»
«Buyer_2»
State of California
County of Riverside
Date
Date
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.
1 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»
BUYERS AFFIDAVIT
Date:
Applicant:
Co -Applicant:
Address:
Telephone: (home) (work)
Are you a First Time Home Buyer: n Yes ❑ No
Is the Head of Household (Check all that apply): o Male ❑ Female o 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
DRAFT
Age Sex Relationship to Applicant Ethnicity*
Win
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 HispanicBlack/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
Date Received: Received by:
HUD income year used to qualify: II Maximum Actual Housing Cost (MaxAHC):
I% of AMI: II Actual Housing Cost ( AcHAHC):
OVery Low OLow OMedium ( Entered by:
LOT #
IIMinimum Actual Housing Cost (MinAHC):
II% Income to Actual Housing Cost (%Incm):
Date:
«File Path Name»
DRAFT
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
WW1 '.►'l��''/�a�lelOila►IJNil tyWCi1Jti'i«J��1+Y�1:�
Applicant Signature Date Applicant Signature Date
(«Buyer 1 ») («Buyer_2»)
«File Path Name» 1
DRAFT
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 Tess 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 $95,000. The Amount
Financed is the figure on which the Annual Percentage Rate is based.
TOTAL OF PAYMENTS
This figure represents the total of all payments made toward principal, interest and mortgage insurance
(if applicable) over the life of the loan.
PAYMENT SCHEDULE
The dollar figures in the Payment Schedule represent principal, interest, plus Private Mortgage
Insurance (if applicable) over the life of the loan. These figures will not reflect taxes and insurance
escrows or any temporary buydown payments contributed by the seller.
«File Path Name,, 1
TRUTH IN LENDING DISCLOSURE STATEMENT
Credi Dr
Palm Desert Housing Authority
Mailir' Address
73-51 ) Fred Waring Drive, Palm Desert, CA 92260
Loan slumber
«Loam Number»
Applicant(s)
«Buyer 1»
«Buyer 2»
Property Address
«Property_Address»
Preparation Date
«Prep_Date»
ANNI AL PERCENTAGE RATE FINANCE CHARGE Amount Financed Total of Payments
fhe cost f your credit as a yearly rate.
The dollar amount the credit will cost you. The amount of credit provided to you or on your
behalf.
The amount you will have paid after you have m de all
payments as scheduled.
3.0% E$ E$«BUYERS_A STD_dollar» * E$«BUYERS_A Total_Paymt nts»
«BUYERS_A Finance Charge»
PAY!) ENT SCHEDULE:
VUM66R MONTHLY PAYMENTS ARE DUE 'AMOUNT MONTHLY PAYMENTS ARE DUE
OF 'AMOUNT OF PAYMENTS BEGINNING NUMBER OF PAYMENTS F
PAYMENTS BEGINNING
PAYME TS
1*
$ Only as noted in the loan
«BUYERS_A_Total_Payments»* documents
*No payments are due on this loan provided the borrower remains in compliance with the terms of the No e, Trust Deea, 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: ® 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/VVE ❑ do ® do not want an itemization.
REQUIRED DEPOSIT:
0 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:
LATE CHARGES:
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.
If your payment is more than days late, you will be charged a late charge of_% of the overdue payment.
PREPAYMENT: Ifr ou,prepay this loan in full or in part, you
L_I 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/VVe 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
uFile Path Name»
2
URNr1
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»
«Buyer_2»
Date
Date
aFile Path Name»
WALK-THROUGH INSPECTION
RE:
Loan #:
Case #:
GENTLEMEN:
«Property_Address»
«Loan_Number»
ur%Mr 1
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
«File Path Name» 1
Applicant(s)
«Buyer_1»
«Buyer_2»
OCCUPANCY
ABAFT
DISCLOSURE NOTICES
Property Address
«Property_Address»
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:
PeEl Primary Residence - Occupied by Applicant(s) within 30 days of dosing.
I:=1 Secondary Residence - To be occupied by Applicants(s) at least 15 days yearly, as second home (vacation, etc.), while maintaining principal residence
elsewhere. (Please check this box if you plan to establish it as your primary residence at a future date (i.e., retirement).
I=1 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
under the provisions of Title 18, United Stated Code, Section 1014.
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
LL 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
a 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
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
administers compliance with this law conceming this creditor is:
W
FHA LOANS ONLY
rn IF YOU PREPAY YOUR LOAN ON OTHER THAN THE REGULAR INSTALLMENT DATE, YOU MAY BE ASSESSED INTEREST CHARGES UNTIL THE END OF THAT MONTH.
QGOVERNMENT 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.
O EMPLOYMENT CERTIFICATION
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
IX ▪ 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
2 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.
INSURANCE STATEMENT
NOTIFICATION
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
coverage.
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.
I have selected the following agencies to write the insurance covering the property described above:
Insurance Company Name
Agent
Agent's Address Agent's Telephone Number
FLOOD INSURANCE NOTIFICATION
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
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.
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, Uwe the applicant(s) certify that Uwe have received
the "Buying Your Home -Settlement Costs and Helpful information" booklet and the "Consumer Handbook on Adjustable Rate Mortgages: (CHARM booklet). If applicable.
«Buyer_1» Date «Buyer_2» Date
Date Date
«Fite 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»
DRAFT
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 Nameu
,
DRAFT
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
By:
Jan C. Harnik,Chairman
«Buyer_2»
«File Path Namea 2
State of California
) ss.
County of Riverside
DRAFT
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
«Fits Path Name.
DRAFT
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