HomeMy WebLinkAboutARROYO, IRINEO-2006
. A-2007-023
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\fVO'.'({ !/ f ~~~ASE AND SALE AGREEMENT FOR ACQUISITION OF REAL PROPERTY
CLLiK Ui COONCIL AND BILATERAL ESCROW INSTRUCTIONS
em, FEB 1 3 2007 (Residential)
THIS AGREEMENT, entered into this f.fT1f day of FW/1{itv c~' 2006, by and between the CITY OF
SANTA ANA, a charter city and municipal corporation duly organize under the Constitution and laws of the
State of California (hereinafter referred to as the "City" or "Buyer"), and Irineo Arroyo (hereinafter called
"Seller"), regardless of number or gender;
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WITNESSETH
For and in consideration of their promises, covenants and agreements hereinafter set forth, and subject to the
terms, conditions and provisions hereinafter set forth, Seller agrees to sell to City, and City agrees to purchase
from Seller, all that certain real property (hereinafter referred to as "said real property") described as follows:
All that certain real property iocated in the State of California, County of Orange, City of Santa Ana, described
as follows:
SEE EXHIBIT "A" ATTACHED HERETO
AND BY THIS REFERENCE MADE A PART HEREOF
(Commonly known as 712 S. Bristol, Santa Ana, CA)
Said purchase and sale of said real property shall be in accordance with and subject to all of the following
terms, conditions, promises, covenants, agreements and provisions, to wit:
1. Convevance bv Seller. Seller agrees to convey said real property to City, by Grant Deed, at the office
of First American Title Insurance Company, located at 2 First American Way, Santa Ana, California, within thirty
(30) days from and after the date on which the City has approved this Agreement.
2. Title to be Conveved. (a) Seller agrees that, except as may hereinafter be otherwise expressly
provided, said real property shall be conveyed by Seller to City, as aforesaid, free and clear of any and all
conditions, restrictions, reservations, exceptions, easements, assessments, profits, limitations, encumbrances
(including any and all leases), liens, clouds or defects in title except those exceptions shown in Paragraph 15
below. Seller hereby warrants that the title to said real property to be conveyed by Seller to City shall be free
and clear as provided above. Seller further agrees that acceptance by City of any deed to said real property,
with or without knowledge of any condition, restriction, reservation, exception, easement, assessment, profit,
limitation, encumbrance (including any and all leases), lien, cloud or defect in title, shall not constitute a waiver
by City of its right to the full and clear title hereinabove agreed to be conveyed by Seller to City, nor of any right
which might accrue to City because of the failure of Seller to convey title as hereinabove provided.
3. Title Insurance. Seller agrees to deliver to City, concurrently with the conveyance of said real property
to City, within the time and at the place hereinabove specified for said conveyance of said real property, a policy
of title insurance to be issued by the above mentioned title insurance company, with the City therein named as
the insured, in the amount SIX HUNDRED AND TWENTY THOUSAND DOLLARS ($620,000) insuring the titie
of the City to said real property is free and clear of any and all conditions, restrictions, reservations, exceptions,
easements, assessments, profits, limitations, encumbrances (including any and all ieases), liens, clouds or
defects in title, excepting such specific ones as city may hereinafter expressly agree to take subject to.
Acceptance by City of any such policy of title insurance, whether such insurance complies with the
requirements of this paragraph or not, shall not constitute a waiver by City of its right to such insurance as is
herein required of Seller, nor a waiver by the City of any rights of action for damages or any other rights which
may accrue to City by reason of the failure of Seller to convey title or to provide title insurance as required in
this Agreement.
4. Escrow. City agrees to open an escrow at the office of First American Title Insurance Company, 2 First
American Way, Santa Ana, California, (the Escrow Agent) within five (5) days from and after the date on which
the City has approved this Agreement. This Agreement constitutes the joint escrow instructions of the City and
the Seller and a duplicate original of this Agreement shall be delivered to the Escrow Agent upon the opening of
the escrow. Escrow to close within 90 days of the City's execution of this Agreement.
The Escrow Agent hereby is empowered to act under this Agreement, and upon indicating its acceptance of this
Section 4 and of the General Provisions described in Exhibit "B" attached hereto and incorporated herein by
this reference, in writing, delivered to the City and to the Seller within five (5) days after delivery of this
Agreement, shall carry out its duties as Escrow Agent hereunder.
City agrees to bear and Escrow Agent is hereby authorized to charge to the City the cost of any transfer taxes,
recording fees, cost of title insurance, reconveyance fees, document preparation fees, escrow fees and any
other closing costs incidental to the conveying of said real property to City. Penalties for prepayment of bona
fide obligations secured by any existing deed of trust or mortgage shall be waived pursuant to Civil Code
Procedures Section 1265.240. .
The liability to the Escrow Agent under this Agreement is limited to performance of the obligations imposed
upon it under Section 4, Section 6, Section 11 and Exhibit "B" of the General Provisions of this Agreement.
5. Property Taxes. Such real property taxes, if any, on said real property for the fiscal year within which
said real property is conveyed to City as are unpaid at the time of said conveyance shall be cleared and paid in
accordance with the provisions of Section 4986 of the Revenue and Taxation Code of the State of California.
Seller shall be eligible for a refund under Section 5096.7 of the Revenue and Taxation Code of the State of
California for that portion of property taxes on said real property for said fiscal year which have been paid prior
to the date the deed conveying said real property to City is recorded which is allocable to that portion of the
fiscal year which begins on the date the deed conveying said real property to City is recorded and made
uncollectible if unpaid by reason of Section 4986 of the Revenue and Taxation Code of the State of California.
All unpaid taxes on said real property for any and all years prior to the fiscal year within which said conveyance
is made shall be paid by Seller before conveyance of said real property to City.
6. Pavment of Purchase Price. City agrees to pay to Seller, and Seller agrees to accept from City, as
and for the full purchase price for said real property, the total sum of SIX HUNDRED AND TWENTY
THOUSAND DOLLARS ($620,000). City agrees to deposit said purchase price in escrow with the Escrow
Agent within THIRTY (30) days from and after the date on which the City has approved this Agreement, and the
Escrow Agent is hereby authorized to pay the same to Seller upon and after:
(a) Conveyance of said real property by Seller to City as hereinabove provided;
(b) Acceptance by City of a Grant Deed conveying said real property to City;
(c) Delivery to City of the policy of title insurance as hereinabove provided;
(d) Recordation of the Deed conveying said real property to City.
7. Possession. Seller agrees to deliver to City, on the date the Deed conveying said real property to City
is recorded, quiet and peaceful possession of said real property, which shall be made free by Seller of all
personal property.
8. Rental and Occupancv Bv Seller. Seller agrees to execute a complete, current and correct statement
of rentals (Estoppel Certificate) on a form furnished to Seller by Buyer and deliver same to Buyer within fifteen
(15) days hereof with copies of any written leases or rental agreements attached thereto. All rents will be
prorated as of the close of escrow on the basis of a 30-day month/360-day year consistent with that statement,
subject to approval of Buyer. Seller hereby agrees not to rent any units on the premises which are now vacant,
or which may be vacated by present occupants prior to close of escrow. Any and all Tenant Security Deposits
pertaining to the subject property collected by or in the possession of Seller prior to the close of escrow shall be
transferred to and become the property of Buyer during escrow.
Seller hereby warrants that the rental statement referred to shall include the terms of all rental agreements,
tenancies, and leases (written, unwritten, recorded, or unrecorded) and Seller agrees to hold Buyer harmless
from all liability from any such leases or agreements. Seller also warrants that there are no oral or written
leases on all or any portion of property, exceeding a period of one month.
9. Waivers. The waiver by City of any breach of any covenant or agreement herein contained on the part
of Seller shall not be deemed or held to be a waiver of any subsequent or other breach of said covenant or
agreement nor a waiver of any breach of any other covenants or agreements contained herein.
10. Heirs. Assians. Successors in Interest. This Agreement, and all the terms, covenants and conditions
hereof, shall apply to and bind the heirs, executors, administrators, successors and assigns of the respective
parties hereto.
11. Time is of the Essence. In all matters and things hereunder to be done and in all payments hereunder
to be made, time is and shall be of the essence.
12. Permission to Enter on Premises. Seller hereby grants City, and its authorized agents, permission to
enter upon said real property at all reasonable times prior to close of escrow for the purpose of making
necessary inspections.
13. Just Comoensation. Seller acknowledges and agrees that said purchase price is just compensation at
fair market value for said real property,.
14. Notices. The mailing address of the City of Santa Ana is 20 Civic Center Plaza, M-36, P.O. Box 1988,
in the City of Santa Ana 92702, County of Orange, State of California. The mailing address of the Seller is:
712 S. Bristol
Santa Ana, CA 92703
15. Exceotions. City agrees to accept title to said real property subject to the following: NONE.
16. Entire Allreement. It is mutually agreed that the parties hereto have herein set forth the whole of their
Agreement. Performance of this Agreement by City shall lay at rest, each, every, and all issue(s) that were
raised or could have been raised in connection with the acquisition of said real property by City.
17. Hazardous Waste. Neither Seller nor, to the best of Seller's knowledge, any previous owner, tenant,
occupant, or user of the Property used, generated, released, discharged, stored, or disposed of any hazardous
waste, toxic substances, or related materials ("Hazardous Materials") on, under, in, or about the Property, or
transported any Hazardous Materials to or from the Property. Seller shall not cause or permit the presence,
use, generation, reiease, discharge, storage, or disposal of any Hazardous Materials on, under, in, or about, or
the transportation of any Hazardous Materials to or from, the Property. The term "Hazardous Material" shall
mean any substance, material, or waste which is or becomes regulated by any local governmental authority, the
State of California, or the United States Government, including, but not limited to, any material or substance
which is (i) defined as a "hazardous waste", "extremely hazardous waste", or "restricted hazardous waste"
under Section 25115, 25117 or 25122.7, or listed pursuant to Section 25140 of the California Health and Safety
Code, Division 20, Chapter 6.5 (Hazardous Waste Control Law), (ii) defined as "hazardous substance" under
Section 25316 of the California Heaith and Safety Code, Division 20, Chapter 6.8 (Carpenter-Presley-Tanner
Hazardous Substance Account Act), (iii) defined as a "hazardous material", "hazardous substance", or
"hazardous waste" under Section 25501 of the California Health and Safety Code, Division 20, Chapter 6.95
(Hazardous Materials Release Response Plans and Inventory), (iv) defined as a "hazardous substance" under
Section 25281 of the California Health and Safety Code, Division 20, Chapter 6.7 (Underground Storage of
Hazardous Substances), (v) petroleum, (vi) asbestos, (vii) polychlorinated biphenyls, (viii) listed under Article 9
or defined as "hazardous" or "extremely hazardous" pursuant to Article 11 of Title 22 of the California
Administrative Code, Division 4, Chapter 20, (ix) designated as a "hazardous substances" pursuant to Section
311 of the Clean Water Act, (33 U.S.C. S1317), (x) defined as a "hazardous waste" pursuant to Section 1004 of
the Resource Conservation and Recovery Act, 42 U.S.C. S6901 et sea. (42 U.S.C. S6903) or (xi) defined as a
"hazardous substances" pursuant to Section 101 of the Comprehensive Environmental Response,
Compensation, as amended by Liability Act, 42. U.S.C. S9601 et sea. (42 U.S.C. S9601).
18. ComDliance With Environmental Laws. To the best of Seller's knowledge the Property complies with
all applicable laws and governmental regulations including, without limitation, all applicable federal, state, and
local laws pertaining to air and water quality, hazardous waste, waste disposal, and other environmental
matters, including, but not limited to, the Clean Water, Clean Air, Federal Water Pollution Control, Solid Waste
Disposal, Resource Conservation Recovery and Comprehensive Environmental Response Compensation and
Liability Acts, and the California Environment Quality Act, and the rules, regulations, and ordinances of the city
within which the subject property is located, the California Department of Health Services, the Regional Water
Quality Control Board, the State Water Resources Control Board, the Environmental Protection Agency, and all
applicable federal, state, and local agencies and bureaus.
19. Indemnitv. Seller agrees to indemnify, defend and hold the City harmless from and against any claim,
action, suit, proceeding, loss, cost, damage, liability, deficiency, fine, penalty, punitive damage, or expense
(including, without limitation, attorneys' fees), resulting from, arising out of, or based upon (i) the presence,
release, use, generation, discharge, storage, or disposal of any Hazardous Material on, under, in or about, or
the transportation of any such materials to or from, the Property, or (iI) the violation, or alleged violation, of any
statute, ordinance, order, rule, regulation, permit, judgment, or license relating to the use, generation, release,
discharge, storage, disposal, or transportation of Hazardous Materials on, under, in, or about, to or from, the
Property. This indemnity shall include, without limitation, any damage, liability, fine, penalty, punitive damage,
cost, or expense arising from or out of any claim, action, suit or proceeding for personal injury (including
sickness, disease, or death, tangible or intangible property damage, compensation for lost wages, business
income, profits or other economic loss, damage to the natural resource or the environment, nuisance, pollution,
contamination, leak, spill, release, or other adverse effect on the environment). This indemnity extends only to
liability created prior to or up to the date this escrow shall close. Seller shall not be responsible for acts or
omissions to act post close of this escrow.
20. Continaencv. It is understood and agreed between the parties hereto that the completion of this
transaction, and the escrow created hereby, is contingent upon the specific acceptance and approval of the City
herein. The execution of these documents and the delivery of same to Escrow Agent constitutes said
acceptance and approval.
21. Modification and Amendment. This Agreement may not be modified or amended except in writing
signed by the Seller and City.
22. Partiallnvaliditv. Any provision of this Agreement that is unenforceable or invalid or the conclusion of
which would adversely affect the validity, legality, or enforcement of this Agreement shall have no effect, but all
the remaining provisions of this Agreement shall remain in full force.
23. CaDtions. Captions and headings in this Agreement, including the title of this Agreement, are for
convenience only and are not to be considered in construing this Agreement.
24. Governina Law. This Agreement shall be governed by and construed in accordance with the laws of
the State of California.
25. No Reliance Bv One Party On The Other. Each party has received independent legal advice from its
attorneys with respect to the divisibility of executing this Agreement and the meaning of the provisions hereof. The
provisions of this Agreement shall be construed as to their fair meaning, and not for or against any party based
upon any attribution to such party as the source of the language in question.
26. No Third Party Beneficiarv. This Agreement is intended to benefit only the parties hereto and no other
person or entity has or shall acquire any rights hereunder.
.'
27. Duty To Cooperate Further. Each party hereby agrees that it shall, upon request of the other, execute
and deliver such further documents (in form and substance reasonably acceptable to the party to be charged) and
do such other acts and things as are reasonably necessary and appropriate to effectuate the terms and conditions
of this Agreement, without cost.
28. Applicability of AQreement To Assianees. This Agreement shall be binding upon and shall inure to the
benefit of the successors and assigns of the parties to this Agreement.
29. Authority to Execute Aareement. Each undersigned represents and warrants that its signature herein
below has the power, authority and right to bind their respective parties to each of the terms of this Agreement, and
shall indemnify City fully, including reasonable costs and attomey's fees, for any injuries or damages to City in the
event that such authority or power is not, in fact, held by the signatory or is withdrawn.
30. Incorporation of Exhibits. All Exhibits referenced herein and attached hereto shall be incorporated as if
fully set forth in the body of this Agreement.
The parties have executed this Agreement as of the date written below.
SELLER:
For: IRINEO ARROYO
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CITY/BUYER:
CITY OF SANTA ANA
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. David N. Ream
City Manager
ATTEST:
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Dated
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'Patricia E. Healy
Clerk of the Council
APPROVED AS TO FORM:
Joseph W. Fletcher
City Attorney
BY:
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EXHIBIT "A"
lEGAL DESCRIPTION
THE LAND REFERRED TO HEREIN IS SITUATED IN THE STATE OF CALIFORNIA, COUNTY OF ORANGE,
CITY OF SANTA ANA, AND IS DESCRIBED AS FOllOWS:
LOT 40 OF TRACT NUMBER 2325, IN THE CITY OF SANTA ANA, COUNTY OF ORANGE, STATE
OF CALIFORNIA, AS PER MAP RECORDED IN BOOK 68, PAGES) 40 TO 43, INCLUSIVE OF
MISCELLANEOUS MAPS, RECORDS OF SAID ORANGE COUNTY.
APN: 109-345-20
.'
EXHIBIT "B"
GENERAL ESCROW PROVISIONS
All disbursements shall be made by Escrow's check. All funds received in this escrow shall be deposited in one
or more of your general escrow accounts with any bank doing business in the State of California and may be
transferred to any other general escrow account or accounts. The expression "close of escrow" means the date
on which instruments referred to herein are filed for record. All adjustments are to be made on the basis of a
3D-day month. Recordation of any instruments delivered through this escrow, if necessary or proper in the
issuance of a policy of title insurance called for, is hereby authorized.
There shall be no prorations of any existing insurance pOlicies in this escrow.
You are to furnish a copy of these instructions, amendments thereto, closing statements and/or any other
documents deposited in this escrow to the lender or lenders, the real estate broker or brokers and/or the
attorney or attorneys involved in this transaction upon request of such lenders, brokers or attorneys.
Should you before or after close of escrow receive or become aware of any conflicting demands or claims with
respect to this escrow or the rights of any of the parties hereto, or any money or property deposited herein
affected hereby, you shall have the right to discontinue any or all further acts on your part until such conflict is
resolved to your satisfaction, and you shall have the further right to commence or defend any action or
proceedings for the determination of such conflict. The parties hereto jointly and severally agree to pay all
costs, damages, judgments and expenses, including reasonable attorney's fees, suffered or incurred by you in
connection with, or arising out of this escrow, including, but without limiting the generality of the foregoing, a suit
in interpleader brought by you. In the event you file a suit in interpleader, you shall ipso facto be fully released
and discharged from all obligations imposed upon you in this escrow.
If for any reason funds are retained or remain in escrow, you are to deduct therefrom a reasonable monthly
charge as custodian thereof of not less than $10.00 per month.
Time is declared to be the essence of these instructions. If you are unable to comply within the time specified
herein and such additional time as is required to make an examination of the official records, you will return all
documents, money or property to the party entitled thereto upon satisfactory written demand and authorization.
Any amendment of and/or supplement to any instructions must be in writing. The seller agrees to sell and the
buyer agrees to buy the property herein described upon the terms hereof.
These escrow instructions, and amendments hereto, may be executed in one or more counterparts, each of
which independently shall have the same effect as if it were the original, and all of which taken together shall
constitute one and the same instruction.
.
...
First American
Dated: March 18,2007
City of Santa Ana/Clerk of the Council
20 Civic Center Plaza, M-30
Santa Ana, CA , 92701
Loan #
RE: OSA 2485962
The City of Santa Ana, a charter city and municipal corporation
712 South Bristol Street
Santa Ana CA 92703
Arroya
Please find enclosed Policy of Title Insurance
Joe Gallagher
Title Officer
2 First American Way Santa Ana, California 92707
TEL: (714)250-3000 FAX:
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Title Transmittal
...
First American Title company
2 First American Way
Santa Ana, California 92707
(714)250-3000 I
Title Transmittal
City of Santa Ana/Clerk of the Council
20 Civic Center Plaza, M-30
Santa Ana, CA 92701
Attention:
RE: OSA-2485962
The City of Santa Ana, a charter city and municipal corporation
Arroya
712 South Bristol Street, Santa Ana, CA 92703
Enclosed please find Policy of Title Insurance.
Comments
ALTA Owners Extended 1970
Joe Gallagher
Title Officer
Dated: March 16, 2007
Form No. 1402.70
Owner's Policy (Amended 10-17-70)
Order Number: OSA-2485962
Page Number: 1
Policy of Title Insurance
ISSUED BY
First American Title Insurance Company
SUBJECT TO THE EXCLUSIONS FROM COVERAGE, THE EXCEPTIONS CONTAINED IN SCHEDULE B AND THE PROVISIONS OF THE
CONDmONS AND STIPULATIONS HEREOF, FIRST AMERICAN TITLE INSURANCE COMPANY, a California corporation, herein called the
Company, insures, as of Date of Policy shown in Schedule A, against loss or damage, not exceeding the amount of insurance stated in
Schedule A, and costs, attorneys' fees and expenses which the Company may become obligated to pay hereunder, sustained or incurred by
the insured by reason of:
1. title to the estate or interest described in Schedule A being vested otherwise than as stated therein;
2. any defect in or lien or encumbrance on such title;
3. lack of a right of access to and from the land; or
4. unmarketability of such title
IN WITNESS WHEREOF, First American Title Insurance Company has caused this policy to be signed and sealed by its duly authorized
officers as of Date of Policy shown in Schedule A.
HY
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First Amen.can Title Insurance Company
t\TTEST
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SFCRFIJl.HY
First American Title
Form No. 1402.70
Owner's Policy (Amended 10-17-70)
Order Number: OSA-2485962
Page Number: 2
"
SCHEDULE A
Premium:
$1,450.00
Amount of Insurance: $620,000.00
Policy Number: OSA-2485962
Date of Policy:
March 15, 2006 at 3:54 P.M.
1. Name of insured:
The City of Santa Ana, a charter city and municipal corporation
2. The estate or interest referred to herein is at Date of Policy vested in:
The City of Santa Ana, a charter city and municipal corporation
3. The estate or interest in the land described in Schedule C and which is covered by this policy is:
A fee.
First American Title
Form No. 1402.70
Owner's Policy (Amended 10-17-70)
Order Number: OSA-2485962
Page Number: 3
SCHEDULE B
This Policy does not insure against loss or damage by reason of the following:
1. General and special taxes and assessments for the fiscal year 2007-2008, a lien not yet due or
payable.
2. The lien of supplemental taxes, if any, assessed pursuant to Chapter 3.5 commencing with
Section 75 of the California Revenue and Taxation Code.
3. Covenants, conditions, restrictions and easements in the document recorded February 24, 1955
as Book 2972 Page 181 of Official Records, which provide that a violation thereof shall not
defeat or render invalid the lien of any first mortgage or deed of trust made in good faith and for
value, but deleting any covenant, condition or restriction indicating a preference, limitation or
discrimination based on race, color, religion, sex, sexual orientation, marital status, ancestry,
disability, handicap, familial status, national origin, source of income (as defined in California
Government Code 12955(p)), to the extent such covenants, conditions or restrictions violate Title
42, Section 3604(c), of the United States Codes. Lawful restrictions under state and federal law
on the age of occupants in senior housing or housing for older persons shall not be construed as
restrictions based on familial status.
The map attached, if any, mayor may not be a survey of the land depicted hereon. First American
expressly disclaims any liability for loss or damage which may result from reliance on this map except to
the extent coverage for such loss or damage is expressly provided by the terms and provisions of the title
insurance policy, if any, to which this map is attached.
First American Title
Form No. 1402.70
Owner's Policy (Amended 10-17-70)
Order Number: OSA-2485962
Page Number: 4
SCHEDULE C
The land referred to in this policy is described as follows:
Real property in the City of Santa Ana, County of Orange, State of California, described as
follows:
LOT 40 OF TRACT 2325, IN THE CITY OF SANTA ANA, COUNTY OF ORANGE, STATE OF
CALIFORNIA, AS PER MAP RECORDED IN BOOK 68, PAGES 40 TO 43, INCLUSIVE OF
MISCELLANEOUS MAPS, RECORDS OF SAID ORANGE COUNTY.
APN: 109-345-20
First American Title
Form No. 1402.70
Owner's Policy (Amended 10-17-70)
Order Number: OSA-2485962
Page Number: 5
,
SCHEDULE OF EXCLUSIONS FROM COVERAGE
THE FOllOWING MATTERS ARE EXPRESSLY EXCLUDED FROM THE COVERAGE OF THIS POUCY:
1. Any law, ordinance or governmental regulation (including but not limited to building and zoning ordinances) restricting or regulating or prohibiting
the occupancy, use or enjoyment of the land, or regulating the character, dimensions or location of any improvement now or hereafter erected on the
land, or prohibiting a separation in ownership or a reduction in the dimensions or area of the land, or the effect of any violation of any such law,
ordinance or governmental regulation.
2. Rights of eminent domain or governmental rights of police power unless notice of the exercise of such rights appears in the public records at Date
of Policy.
3. Defects, liens, encumbrances, adverse claims, or other matters (a) created, suffered, assumed or agreed to by the insured claimant; (b) not known
to the Company and not shown by the public records but known to the insured claimant either at Date of Policy or at the date such claimant acquired
an estate or interest insured by this policy and not disclosed in writing by the insured claimant to the Company prior to the date such insured claimant
became an insured hereunder; (c) resulting in no loss or damage to the insured claimant; (d) attaching or created subsequent to Date of Policy or (e)
resulting in loss or damage which would not have been sustained if the insured claimant had paid value for the estate or interest insured by this policy.
CONDITIONS AND STIPULATIONS
1. DEFINITION OF TERMS
The following terms when used in this policy mean:
(a) "insured": the insured named in Schedule A, and, subject to any rights or defenses the Company may have had against the named insured, those
who succeedto the interest of such insured by operation of law as distinguished from purchase including, but not limited to, heirs, distributees,
devisees, survivors, personal representatives, next of kin, or corporate or fiduciary successors.
(b) "insured claimant": an insured claiming loss or damage hereunder.
(c) "knowledge": actual knowledge, not constructive knowledge or notice which may be imputed to an insured by reason of any public records.
(d) "land": the land described, specifically or by reference in Schedule C, and improvements affixed thereto which by law constitute real property;
provided, however, the term "land" does not include any property beyond the lines of the area specifically described or referred to in Schedule C, nor
any right, title, interest, estate or easement in abutting streets, roads, avenues, alleys, lanes, ways or waterways, but nothing herein shall modify or
limit the extent to which a right of access to and from the land is insured by this policy.
(e) "mortgage": mortgage, deed of trust, trust deed, or other security instrument.
(f) "public records": those records which by law impart constructive notice of matters relating to said land.
2. CONTINUATION OF INSURANCE AFTER CONVEYANCE OF TITLE
The coverage of this policy shall continue in force as of Date of Policy in favor of an insured so long as such insured retains an estate or interest in the
land, or holds an indebtedness secured by a purchase money mortgage given by a purchaser from such insured, or so long as such insured shall have
liability by reason of covenants of warranty made by such insured in any transfer or conveyance of such estate or interest; provided, however, this
policy shall not continue in force in favor of any purchaser from such insured of either said estate or interest or the indebtedness secured by a purchase
money mortgage given to such insured.
3. DEFENSE AND PROSECUTION OF ACTION - NOTICE OF CLAIM TO BE GIVEN BY AN INSURED CLAIMANT
(a) The Company, at its own cost and without undue delay, shall provide for the defense of an insured in all litigation consisting of actions or
proceedings commenced against such insured, or a defense interposed against an insured in an action to enforce a contract for a sale of the estate or
interest in said land, to the extent that such litigation is founded upon an alleged defect, lien, encumbrance, or other matter insured against by this
policy.
(b) The insured shall notify the Company promptly in writing (i) in case any action or proceeding is begun or defense is interposed as set forth in (a)
above, (ii) in case knowledge shall come to an insured hereunder of any claim of title or interest which is adverse to the title to the estate or
interest, as insured, and which might cause loss or damage for which the Company may be liable by virtue of this policy, or (iii) if title to the estate or
interest, as insured, is rejected as unmarketable. If such prompt notice shall not be given to the Company, then as to such insured all liability of the
Company shall cease and terminate in regard to the matter or matters for which prompt notice is required; provided, however, that failure to notify
shall in no case prejudice the rights of any such insured under this policy unless the Company shall be prejudiced by such failure and then only to the
extent of such prejudice.
(c) The Company shall have the right at its own cost to institute and without undue delay prosecute any action or proceeding or to do any other act
which in its opinion may be necessary or desirable to establish the title to the estate or interest as insured, and the Company may take any appropriate
action under the terms of this policy, whether or not it shall be liable thereunder, and shall not thereby concede liability or waive any provision of this
policy.
(d) Whenever the Company shall have brought any action or interposed a defense as required or permitted by the provisions of this policy, the
Company may pursue any such litigation to final determination by a court of competent jurisdiction and expressly reserves the right, in its sole
discretion, to appeal from any adverse judgment or order.
(e) In all cases where this policy permits or requires the Company to prosecute or provide for the defense of any action or proceeding, the insured
hereunder shall secure to the Company the right to so prosecute or provide defense in such action or proceeding, and all appeals therein, and permit
the Company to use, at its option, the name of such insured for such purpose. Whenever requested by the Company, such insured shall give the
Company all reasonable aid in any action or proceeding, in effecting settlement, securing evidence, obtaining witnesses, or prosecuting or defending
such action or proceeding, and the Company shall reimburse such insured for any expense so incurred.
4. NOTICE OF LOSS - LIMITATION OF ACTION
In addition to the notices required under paragraph 3(b) of these Conditions and Stipulations, a statement in writing of any loss or damage for which it
is claimed the Company is liable under this policy shall be furnished to the Company within 90 days after such loss or damage shall have been
determined and no right of action shall accrue to an insured claimant until 30 days after such statement shall have been furnished. Failure to furnish
such statement of loss or damage shall terminate any liability of the Company under this policy as to such loss or damage.
First American Title
Form No. 1402.70
Owner's Policy (Amended 10-17-70)
Order Number: OSA-2485962
Page Number: 6
5. OPTIONS TO PAY OR OTHERWISE SETTLE CLAIMS
The Company shall have the option to payor otherwise settle for or in the name of an insured claimant any claim insured against or to terminate all
liability and obligations of the Company hereunder by paying or tendering payment of the amount of insurance under this policy together with any
costs, attorneys' fees and expenses incurred up to the time of such payment or tender of payment, by the insured claimant and authorized by the
Company.
6. DETERMINATION AND PAYMENT OF LOSS
(a) The liability of the Company under this policy shall in no case exceed the least of:
(i) the actual loss of the insured claimant; or
(ii) the amount of insurance stated in Schedule A.
(b) The Company will pay, in addition to any loss insured against by this policy, all costs imposed upon an insured in litigation carried on by the
Company for such insured, and all costs, attorneys' fees and expenses in litigation carried on by such insured with the written authorization of the
Company.
(c) When liability has been definitely fixed in accordance with the conditions of this policy, the loss or damage shall be payable within 30 days
thereafter.
7. LIMITATION OF LIABILITY
No claim shall arise or be maintainable under this policy (a) if the Company, after having received notice of an alleged defect, lien or encumbrance
insured against hereunder, by litigation or otherwise, removes such defect, lien or encumbrance or establishes the title, as insured, within a reasonable
time after receipt of such notice; (b) in the event of litigation until there has been a final determination by a court of competent jurisdiction, and
disposition of all appeals therefrom, adverse to the title as insured, as provided in paragraph 3 hereof; or (c) for liability voluntarily assumed by an
insured in settling any claim or suit without prior written consent of the Company.
8. REDUCTION OF LIABILITY
All payments under this policy, except payments made for costs, attorneys' fees and expenses, shall reduce the amount of the insurance pro tanto. No
payment shall be made without producing this policy for endorsement of such payment unless the policy be lost or destroyed, in which case proof of
such loss or destruction shall be furnished to the satisfaction of the Company.
9. LIABILITY NON-CUMULATIVE
It is expressly understood that the amount of insurance under this policy shall be reduced by any amount the Company may pay under any policy
insuring either (a) a mortgage shown or referred to in Schedule B hereof which is a lien on the estate or interest covered by this policy, or (b) a
mortgage hereafter executed by an insured which is a charge or lien on the estate or interest described or referred to in Schedule A, and the amount
so paid shall be deemed a payment under this policy. The Company shall have the option to apply to the payment of any such mortgages any amount
that otherwise would be payable hereunder to the insured owner of the estate or interest covered by this policy and the amount so paid shall be
deemed a payment under this policy to said insured owner.
10. APPORTIONMENT
If the land described in Schedule C consists of two or more parcels which are not used as a single site, and a loss is established affecting one or more
of said parcels but not all, the loss shall be computed and settled on a pro rata basis as if the amount of insurance under this policy was divided pro
rata as to the value on Date of Policy of each separate parcel to the whole, exclusive of any improvements made subsequent to Date of Policy, unless a
liability or value has otherwise been agreed upon as to each such parcel by the Company and the insured at the time of the issuance of this policy and
shown by an express statement herein or by an endorsement attached hereto.
11. SUBROGATION UPON PAYMENT OR SETTLEMENT
Wheneverthe Company shall have settled a claim under this policy, all right of subrogation shall vest in the Company unaffected by any act of the
insured claimant. The Company shall be subrogated to and be entitled to all rights and remedies which such insured claimant would have had against
any person or property in respect to such claim had this policy not been issued, and if requested by the Company, such insured claimant shall transfer
to the Company all rights and remedies against any person or property necessary in order to perfect such right of subrogation and shall permit the
Company to use the name of such insured claimant in any transaction or litigation involving such rights'or remedies. If the payment does not cover the
loss of such insured claimant, the Company shall be subrogated to such rights and remedies in the proportion which said payment bears to the amount
of said loss. If loss should result from any act of such insured claimant, such act shall not void this policy, but the Company, in that event, shall be
required to pay only that part of any losses insured against hereunder which shall exceed the amount, if any, lost to the Company by reason of the
impairment of the right of subrogation.
12. LIABILITY LIMITED TO THIS POLICY.
This instrument together with all endorsements and other instruments, if any, attached hereto by the Company is the entire policy and contract
between the insured and the Company.
Any claim of loss or damage, whether or not based on negligence, and which arises out of the status of the title to the estate or interest covered
hereby or any action asserting such claim, shall be restricted to the provisions and conditions and stipulations of this policy.
No amendment of or endorsement to this policy can be made except by writing endorsed hereon or attached hereto signed by either the President, a
Vice-President, the Secretary, an Assistant Secretary, or validating officer or authorized signatory of the Company.
13. NOTICES, WHERE SENT
All notices required to be given the Company and any statement in writing required to be furnished the Company shall be addressed to it at its main
office at 1 First American Way, Santa Ana, California 92707, or to the office which issued this policy.
First American Title
jJ, U I.!
First American
IMPORTANT - PLEASE READ
THIS LETTER CONTAINS INFORMATION ABOUT THE
PROPERTY YOU HAVE RECENTLY PURCHASED. READ
IT THOROUGHLY AND RETAIN IT WITH YOUR OTHER
VALUABLE PAPERS PERTAINING TO THE PROPERTY.
Policy No.: OSA-2485962-08
Property: 712 South Bristol Street, Santa Ana, CA 92703
Title to the above referenced property is protected with a Policy of Title Insurance issued by First American Title
Insurance Company. This insures your ownership of the property.
We have assigned the policy number referenced above to assure prompt processing of any future title orders
involving the property. If you sell your home within the next Five (5) years, First American Title
Company will reduce the Base Policy Rate by Twenty percent (20 0/0).
To take advantage of these savings, instruct your real estate agent, loan agent and/or escrow holder to open the
order for title insurance with First American Title Company and reference the policy number above.
We appreciate the opportunity to serve you and will be glad to assist you in any way we can, remembering that
protection of your property is your first consideration - and ours.
Sincerely,
Larry Buster
Vice President
County Manager