32A - TRACT MAP - 1406 N HARBOR BLVD

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D. The obligations set forth in the Inclusionary Housing Covenants Declaration are secured by a Deed of Trust recorded against the Inclusionary Unit on 20_, as Document No. in the Official Records of Orange County, California (the "City Deed of Trust"); and E. The Transferee is acquiring, the Inclusionary Unit and will assume the obligations of an Owner under the Inclusionary Housing Covenants Declaration and as Trustor under the City Deed of Trust. F. Capitalized terms used herein, and not defined in this Assumption Agreement, shall have the meanings set forth in the Inclusionary Housing Covenants Declaration and the City Deed of Trust. The parties to this Assumption Agreement agree to the following: 1. The Transferee hereby acknowledges and agrees to the following: a. The Inclusionary Unit is subject to the Inclusionary Housing Covenants Declaration that are secured by the City Deed of Trust. The Transferee acknowledges that it has received a copy of the Inclusionary Housing Covenants Declaration, and agrees to be bound by all the conditions and covenants contained therein. b. The Transferee shall occupy and continually use the Inclusionary Unit as the Transferee's Primary Residence during the Affordability Period as defined in the Inclusionary Housing Covenants Declaration. C. The Transferee's right to resell the Inclusionary Unit at the Fair Market Value is very limited, and in certain instances, the City will have the option to purchase the Inclusionary Unit from the Transferee at the Affordable Sales Price: Under a Permitted Sale, the Inclusionary Unit must be sold at the Affordable Sales Price. The Inclusionary Unit will not necessarily appreciate in value during the duration of its ownership. ii. In the event that the Inclusionary Unit is sold for the Fair Market Value, either through an Extraordinary Sale or Inclusionary Housing Covenants Declaration Page 2 Assumptlon Agreement January 2015 32A-111