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HomeMy WebLinkAboutPK1998-0310 - Original - Larry A. Scheurs dba Evans Construction - Purchase of 24400 98th Ave S Property - 12/28/1998 REAL ESTATE PURCHASE AND SALE AGREEMENT WITH EARNEST MONEY PROVISION LAND ONLY This contract controls the terms of the sale of real property. (Please read carefully before signing. ) This agreement is entered between the City of Kent, a Washington municipal corporation, whose mailing address is 220 4th Ave. South, Kent, Washington 98032, ("Buyer") , Larry A. Scheurs DBA Evans Construction, whose mailing address is 11631 Fay Road NE, Carnation, Washington 98014 , Phone (425) 788-5268 . ( "Seller" ) , entered into in Kent, Washington, this 22nd day of December 1998 . 1 . PROPERTY. The property commonly known to be located at 24400 98th Avenue South, Kent, Washington (the "Property" ) , which Buyer agrees to buy and Seller agrees to sell, and which Property is legally described in Exhibit A, attached hereto and incorporated herein by this reference . A map indicating the location of the Property is also attached as Exhibit B, incorporated herein by this reference . 2 . EARNEST MONEY. Received from Buyer, Ten Thousand Dollars ($10, 000 . 00) in the form of a City of Kent purchase order, as earnest money and part payment on the purchase price of the real estate which is legally described in Exhibit A. Said purchase order will be converted to check upon final acceptance of this agreement by Seller. 3 . PURCHASE PRICE. The total purchase price for the Property is One Hundred Sixty-Five Thousand Dollars and NO/100ths ($165, 000 . 00) including earnest money, payable by City check, on closing. ScheursEvansConstruction 1 of 13 12/22/98 4 . CONTINGENCIES. This agreement is contingent upon: a. acceptance of its terms by the Kent City Council; b. Buyer' s review and approval of the title report on the Property prior to Closing; c . Feasibility Study as follows : 1 . Buyer shall have thirty (30) days from the date of mutual acceptance of this Agreement to determine, in Buyer' s sole and absolute discretion, if the Real Property is feasible for investment and/or development by Buyer. 2 . Buyer' s feasibility study may include (but is not limited to) soil studies, utilities availability and capacity, access availability, zoning, environmental assessment, preliminary architectural and engineering studies, marketing feasibility. 3 . Buyer agrees to conduct its feasibility study at its sole cost and expense . Should any of these contingencies not be met prior to closing, then this Agreement shall terminate except neither Buyer nor Seller shall have any further rights, duties or obligations hereunder, except that the Earnest Money held in Pacific Northwest Title, by Buyer to Seller shall be immediately returned to Buyer. d. Seller' s performance of all inspection requirements listed under Item 8 . 5 . SELLER' S REPRESENTATIONS. Seller represents : a. that he/she will maintain the property and yard in present or better condition until time of agreed possession, scheurssvaneconetr ction 2 of 13 12/22/98 b. that he/she has no knowledge or notice from any governmental agency of any violation of laws relating to the subject property except : 6 . CONVEYANCE AND CONDITION OF TITLE. The title to the real property shall be conveyed by Seller to Buyer at closing by Statutory Warranty Deed, free and clear of all liens, encumbrances or defects except those described in Paragraph 7 below. 7 . TITLE INSURANCE. At closing, Seller shall cause Pacific Northwest Title Company, 116 Washington Avenue North, Kent, Washington 98032-5717 to issue a standard form owner' s policy of title insurance to Buyer in an amount equal to the total purchase price of the Real Property, and insuring the Real Property. Encumbrances to be discharged by Seller shall be paid from Seller' s funds at closing. For purposes of this Agreement, the following shall not be deemed encumbrances or defects : rights reserved and federal patents or state deeds; building or use restrictions consistent with current zoning, and utility and road easements of record. If title cannot be made so insurable prior to the closing date called for herein, unless, Buyer elects to waive such defects or encumbrances, this agreement shall terminate . 8 . CLOSING COSTS AND PRO-RATIONS. The cost of escrow shall be shared equally between Buyer and Seller, except those fees which are expressly limited by Federal Regulation. Seller shall pay for revenue stamps . Taxes for the current year, rents, interest, Association, Condominium and/or Homeowner' s fees, water and other utility charges, if any, shall be pro-rated as of date of closing unless otherwise agreed. scheurs6vansconstruction 3 of 13 12/22/98 9 . CLOSING OF THE SALE. WITH THE UNDERSTANDING THAT TIME IS OF THE ESSENCE FOR THIS AGREEMENT, this sale shall be closed on or before February 5, 1999, which shall also be the termination date of this agreement unless said closing date is extended in writing by mutual agreement of the parties . When notified, the Buyer and Seller will deposit, without delay, in escrow with Pacific Northwest Title Company, 116 Washington Avenue North, Kent, Washington 98032-5717, Phone (253) 520-0805 all instruments and monies required to complete the transaction in accordance with this agreement . Closing, for the purpose of this agreement, is defined as the date that all documents are executed and the sale proceeds are available for disbursement to the Seller. 10 . POSSESSION. Buyer shall be entitled to possession on closing. 11 . SELLER' S ENVIRONMENTAL REPRESENTATIONS. Seller represents that to the best of his/her knowledge that he/she is not aware of existence of, or has caused or allowed to be caused, any environmental condition (including, without limitation, a spill, discharge or contamination) that existed as of and/or prior to the closing date or any act or omission occurring prior to the closing date, the result of which may require remedial action pursuant to any federal, state or local law or may be the basis for the assertion of any third party claims including claims of governmental entities . This provision shall survive the closing and be in addition to Seller' s obligation for breach of a representation or warranty as may be set forth herein. scheureEvansconetruction 4 of 13 12/2 2/9 8 12 . SELLER' S INDEMNITIES. Seller agrees to indemnify and hold harmless the Buyer, against and in respect of, any and all damages, claims, losses, liabilities, judgments, demands, fees, obligations, assessments, and expenses and costs, including, without limitation, reasonable legal, accounting, consulting, engineering and other expenses which may be imposed upon or incurred by Buyer, or asserted against Buyer, by any other party or parties (including, without limitation, a governmental entity) , arising out of or in connection with any environmental condition existing as of and/or prior to the closing date, including the exposure of any person to any such environmental condition, regardless of whether such environmental condition or exposure resulted from activities of Seller or Seller' s predecessors in interest . This indemnity shall survive closing and be in addition to Seller' s obligation for breach of a representation or warranty as may be set forth herein. 13 . ADDITIONAL PROVISIONS. This agreement is subject to the following additional provisions : (A) CONVEYANCE (1) Title shall be by Statutory Warranty Deed free of encumbrances except those noted in Paragraph 7 above . (B) TITLE INSURANCE Buyer is authorized to apply for a preliminary commitment for a standard form Buyer' s policy of title insurance to be issued by such title insurance company as the Buyer may designate. Said preliminary commitment, and the title policy to be issued shall contain no exceptions other than those provided for in such standard form and encumbrances or defects noted in paragraph two hereof . If title cannot be made so insurable prior to the closing date called for herein, unless Buyer elects to waive such defects or encumbrances, this agreement shall be terminated. ScheureEvaneConetruction 5 of 13 12/22/98 (C) GENERAL PROVISIONS SQUARE FOOTAGE: Unless otherwise expressly stated to the contrary on the reverse hereof, any square footage as to the building or lot used by Seller or any real estate agent in marketing said property are understood to be approximations and are not intended to be relied upon to determine the fitness or value of the property. Buyer has personally observed the property and has reached its own conclusion as to the adequacy and acceptability of the size of property based upon said personal inspection. (D) DEFAULT AND ATTORNEY' S FEES If the Seller defaults in his or her contractual performance herein, the Buyer may seek specific performance pursuant to the terms of this agreement, damages, or recission. If the Buyer seeks damages or recission, the earnest money, upon demand, shall be returned in full to the Buyer. If the Buyer defaults in its contractual performance herein, the earnest money, upon demand, shall be forfeited to the Seller and shall be the sole and exclusive remedy for default available to the Seller. In the event of litigation to enforce any of the terms or provisions herein, each party shall pay all its own costs and attorney' s fees. (E) NOTICE TO SELLER, PURCHASER, AND AGENT/BROKER This form contains customary provisions for an agreement for the purchase and sale of real property. The Buyer makes NO WARRANTY OR REPRESENTATION OF ANY KIND that this form, or any of its provisions, is intended to meet the factual and legal requirements of a particular transaction, or that it accurately reflects that laws of the State of Washington at the time you enter the agreement . scheursEvansconatruction 6 of 13 12/22/98 THIS AGREEMENT HAS SIGNIFICANT LEGAL AND FINANCIAL CONSEQUENCES AND YOU ARE ADVISED TO SEEK INDEPENDENT LEGAL AND FINANCIAL COUNSEL REGARDING THESE CONSEQUENCES . (If you do not understand the effect of any part, consult your Attorney before signing. Federal law may impose certain duties upon Brokers or Signatories when any of the signatories receive certain amounts of U. S. currency in connection with a real estate closing. ) 14 . DEFAULT AND ATTORNEY'S FEES. a. Buyer' s Default . IF BUYER DEFAULTS HEREUNDER, SELLER' S SOLE REMEDY SHALL BE LIMITED TO DAMAGES AGAINST PURCHASE IN THE LIQUIDATED AMOUNT OF THE EARNEST MONEY PREVIOUSLY PAID THE BUYER. BUYER AND SELLER INTEND THAT SAID AMOUNT CONSTITUTES LIQUIDATED DAMAGES : AND SO AS TO AVOID OTHER COSTS AND EXPENSES TO EITHER PARTY IN CONNECTION WITH POTENTIAL LITIGATION ON ACCOUNT OF BUYERS' DEFAULT. BUYER AND SELLER BELIEVE SAID AMOUNT TO BE A FAIR ESTIMATE OF ACTUAL DAMAGES . b. Seller's Default. IF SELLER DEFAULTS HEREUNDER, BUYER SHALL HAVE ALL THE RIGHTS AND REMEDIES AVAILABLE AT LAW OR IN EQUITY. C. Attorney' s Fees and Coats. In the event of litigation to enforce any of the terms or provisions herein, each party shall pay all its own costs and attorney' s fees . 15 . NOTICE TO SELLER. This form contains provisions for an agreement for the purchase and sale of real estate. The Buyer makes NO WARRANTY OR REPRESENTATION OF ANY KIND that this form, or any of its provisions, is intended to meet the factual and legal requirements of a particular transaction, or that it accurately reflects that laws of the State of Washington at the time you enter the agreement . ScheursEvansConstruct ion 7 of 13 12/2 2/9 8 THIS AGREEMENT HAS SIGNIFICANT LEGAL AND FINANCIAL CONSEQUENCES AND YOU ARE ADVISED TO SEEK INDEPENDENT LEGAL AND FINANCIAL COUNSEL REGARDING THESE CONSEQUESNCES . If you do not understand the effect of any part, consult your Attorney before signing. 16 . NON-MERGER. The terms, conditions, and provisions of this Agreement shall not be deemed merged into the deed, and shall survive the Closing and continue in full force and effect . 17 . NOTICES. All notices required or permitted to be given hereunder shall be in writing and shall be sent U.S. certified mail, return receipt requested, or by facsimile transmission addressed as set forth below: a) All notices to be given to Buyer shall be addressed as follows : John M. Hodgson, Director Parks and Recreation 220 4th Avenue South Kent, Washington 98032-5895 FAX (253) 859-4005 b) All notices to be given to Seller shall be addressed as follows : scheursavansconstruction 8 of 13 12/22/98 Either party hereto may, by written notice to the other, designate such other address for the giving of notices as being necessary. All notices shall be deemed given on the day such notice is personally served, or on the date of the facsimile transmission, or on the third day following the day such notice is mailed in accordance with this paragraph. 18 . ENTIRE AGREEMENT. This Agreement, including all incorporated exhibits, constitutes the full understanding between Seller and Buyer. There have been no verbal or other agreements that modify this agreement . 19 . BINDING EFFECT AND SURVIVAL. This Agreement shall be binding upon parties hereto and their respective heirs, successors and assigns; and the terms, conditions and provisions of this Agreement shall survive the closing of this transaction. 20 . DATE OF MUTUAL ACCEPTANCE. For the purposes of this Agreement, the date of mutual acceptance of this Agreement shall be the last date on which the parties to this Agreement have executed this Agreement as indicated below. 21 . AGREEMENT TO PURCHASE. Seller hereby acknowledges receipt of copy of this agreement . Buyer offers to purchase the above property on the above terms and conditions. Seller shall have until 5 : 00 p.m. , Tuesday, January 5, 1999 to accept this offer by delivering a signed copy thereof to Buyer. scheursEvansconstruction 9 of 13 12/22/98 IN WITNESS WHEREOF, the parties hereto have executed this Agreement on the date set forth below. BUYER: SELLERS : THE CITY OF KENT cr+-A+'VS 4ri.5bvc By: By: M WHITE, Mayor It Dated: Dated: By: Its : Dated: APPROVED AS TO FORM: �r QER OVICHCITY O Y ✓✓ ScheursEvansConstruction 10 of 13 12/22/98 DESCRIPTION EXHIBIT A Legal Description TAX ACCOUNT NUMBER 192205-9207-00 THE LAND REFERRED TO HEREIN IS DESCRIBED AS FOLLOWS: THE NORTH HALF OF THE NORTH HALF OF THE NORTHEAST QUARTER OF THE SOUTHEAST QUARTER OF THE NORTHEAST QUARTER OF SECTION 19, TOWNSHIP 22 NORTH, RANGE 5 EAST W. M. , IN KING COUNTY, WASTINGTON; EXCEPT THE WEST 130 FEET THEREOF; ALSO THE NORTH 30 FEET OF THE WEST 130 FEET OF SAID NORTH HALF OF THE NORTH HALF OF THE NORTHEAST QUARTER OF THE SOUTHEAST QUARTER OF THE NORTHEAST QUARTER; EXCEPT THE WEST 15 FEET FOR ROAD. THE DESCRIPTION CAN BE ABBREVIATED AS SUGGESTED BELOW IF NECESSARY TO MEET STANDARDIZATION REQUIREMENTS. THE FULL TEXT OF THE DESCRIPTION MUST APPEAR IN THE DOCUMENT(S) TO BE INSURED. SECTION 19 TOWNSHIP 22 RANGE 5 SE QUARTER NE QUARTER. SITUATE IN THE COUNTY OF KING, STATE OF WASHINGTON. Jx t 11 of 13 » »..... EXHIBIT B N077CE, ORDER Mo. 1 c SUBDMSION - - rl-A;cc This Sketch it furu shed as a courtesy only by Fins American RCDG NO./VOL & PG. Title insurance Company and it is KM a part of any title N OTRL2C, SEC.Lj TWNS,� RNG 2- eommitmeat or policy of title iwmmnee. This sketch Is furnished solely for the ptupoot of assisting is .... locaduS the premisesand does not purport lo show all highways, ••.� roads,or easetaents affecting the property. No reliance should W t be placed upon this sketch for the location or dimeesioos of the property and no liability is assumed for the correctness thereof. C r _Vol o' FAO 0� c - — — Z.�.>f _ 5 03 �r) 1 35 Tots ; p s AL N < � •' a °.33 ce Dow 333 y�°� _ins 1349) 2sf, 9n � I 1 0 3 94 .90 6 Jt 6 o-0 4% r;r� N t t � w � a 1 t r,s s3a .rs - - - - sas. ,i 1.22,4c e a 94 i N _ m - - - J. At t'1 ® b 49 ae _ - 3. 4`� ills l+ ,so 7017 ad ISO — ,sO A tas KC 760 8040744 SP 47 744 a • LOT 3 LOT 1 1 LOT L I 00� `I LOTy�k o`I LOT 1 _ $ ` I�s 1`�a �o't 10 s0'kt t O o ff S 245TH PL o.s,iiroc s.� 4.or ;lN c o 1 O a ' W M vsk� „ „ a/ SP /OL.lOI i3- ce' i0 t r to as FKC7,808040743 477016 8 ►�, x _ 0 r lot Z lot 3 t Vot 4 •� C v Z �1 87•Je �aE. Z o 10+ 1 I I` or3s ., 0A °o � O , too , ° In LOT 2 .�� T �, a Lp 4f, 1'12 of ci mmwzor :. GI r�CZ 0 ern°- y J cc v1 J Z v~i cwi E Ya U. oWC t a y w <2wNW 4 q V N W V @>W G <w�a3 w 0 co F O d Q _O<_ tae CD a w �r?a W ; z c8 0io LL O a w > �LL `' ' " ° � uj W ,«.. 'w m w�ma° '` c V/ W > z > w¢ W v as Z W zo Z� � VRim a o s owc. . Z 8m � Z k a9 0S � e1 W qr CL lip r71 M i' }P K,. '• ' — V sI'M FA a m... C cc g� Iaull IE Q1� { l y ti h r* 3 .. O' a, O I c CO c rl W �p C1 Q a c� :, " I .r, Zy e- atL- . ;s aik k, M 1J JJ UO d aNi C� €1Yaa proca ri $ E L �. 0. Y• q > C Addendum to Real Estate Purchase & Sale Agreement with Earnest Money Provision Land Only Paragraph 7 is amended from Pacific Northwest Title Company, 116 Washington Avenue North, Kent, Washington 98032-5717 to Transnation Title Company, 25668 104 Avenue S.E., Kent, Washington, 98031. Paragraph 9 is amended from Pacific Northwest Title Company, 116 Washington Avenue North, Kent, Washington, 98032-5717 to Transnation Title Company, 25668 104 Avenue S.E., Kent, Washington, 98031 . BUYER: SELLERS: THE CITY OF KENT By: Q7ho By: JI WHIT , Mayor ts: /)--12�r-5 By: Its: Dated: NOTICE OF ACQUISITION OF PARK LAND Date: February 8, 1999 To: Jerry McCaughan, Property Management Brenda Jacober, City Clerk Rick Weiss, Park Maintenance Ada Marvosh, Customer Service Barbara Ekstrom, Finance Chris Hills, Risk Manager From: Lori Flemm, Parks Planning & Development The City of Kent purchased the property listed below on 2/8/98 Previous Owner: Larry and Elaine Schreurs DBA Evans Construction Parcel #: 192205-9207-00 Legal Description: (Attached) Acreage: 2.08 acres Address: 24400-98'h Avenue, Kent, WA 98031 Purchase Price: $165,000.00 Structure/improvements: None Future Use: Neighborhood Park Proposed Name of Park or Common Name: Canterbury Neighborhood Park C: John Hodgson, Parks and Recreation Director Jim Dorrough, Parks Maintenance r LEGAL DESCRIPTION: EXHIBIT "A" THE NORTH 1/2 OF THE NORTH 1/2 OF THE NORTHEAST 1/4 OF THE SOUTHEAST 1/4 OF THE NORTHEAST 1/4 OF SECTION 19, TOWNSHIP 22 NORTH, RANGE 5 EAST, W.H.; EXCEPT THE WEST 130 FEET THEREOF; ALSO THE NORTH 30 FEET OF THE WEST 130 FEET OF SAID NORTH 1/2 OF THE NORTH 1/2 OF THE NORTHEAST 1/4 OF THE SOUTHEAST 1/4 OF THE NORTHEAST 1/4; AND EXCEPT THE WEST 15 FEET FOR ROAD; SITUATE IN THE CITY OF RENT, COUNTY OF KING, STATE OF WASHINGTON. APPROVED AS TO FORM AND CONTENT: (DATE) (DATE) (DATE) To: Brenda Jacober. CC: Jerry McCaughan From: Lori M.Flemm Date: March 31, 1999 Re: Canterbury Neighborhood Park Acquisition from the desk of... Lori M. Flemm Superintendent of Park Planning and Development City of Kent Parks and Recreation Department 220-4th Avenue South Kent,WA 98032-5895 (253)859-3994 Fax: (253)859-4005 Memo The original title insurance policy for this recent park Dept. acquisition is attached. If you have any questions, please call me at x3994. THANKS. CITY C VENT Order No. 4028991 MAR 2 91999 ENGINEERING DEPT Prepared for: CITY OF KENT 220 4TH AVE S KENT, WA 98032 This policy is issued by: TRANSNATION TITLE INSURANCE COMPANY 14450 N.E. 29TH PLACE BELLEVUE, WA 98007 Telephone : (425) 451-7301 IssuED By OWNERS POLICY OF TITLE INSURANCE TRANSNATION TITLE INSURANCE COMPANY Transnation SUBJECT TO THE EXCLUSIONS FROM COVERAGE,THE EXCEPTIONS FROM COVERAGE CONTAINED IN SCHEDULE B AND THE CONDITIONS AND STIPULATIONS,TRANSNATION TITLE INSURANCE COMPANY,an Arizona corporation,herein called the Company, insures, as of Date of Policy shown in Schedule A, against loss or damage, not exceeding the Amount of Insurance stated in Schedule A,sustained or incurred by the insured by reason of. 1. Title to the estate or interest described in Schedule A being vested other than as stated therein; 2. Any defect in or lien or encumbrance on the title; 3. Unmarketability of the title; 4. Lack of a right of access to and from the land. The Company will also pay the costs, attorneys' fees and expenses incurred in defense of the title, as insured, but only to the extent provided in the Conditions and Stipulations. IN WITNESS WHEREOF,TRANSNATION TITLE INSURANCE COMPANY has caused its corporate name and seal to be hereunto affixed by its duly authorized officers,the Policy to become valid when countersigned by an authorized officer or agent of the Company. TRANSNATION TITLE INSURANCE COMPANY O�t�1lE IN Attest: �N(01POR1rE� o Secretary SEPT, 16,190 Chairman and Chief Executive Officer gRIZONp EXCLUSIONS FROM COVERAGE The following matters are expressly excluded from the coverage of this policy and the Company will not pay loss or damage,costs,attorneys' fees or expenses which arise by reason of: l. (a)Any law,ordinance or governmental regulation(including but not limited to building and zoning laws,ordinances,or regulations)restricting, regulating,prohibiting or relating to(i)the occupancy,use,or enjoyment of the land;(ii)the character,dimensions or location of any improve- ment now or hereafter erected on the land; (iii)a separation in ownership or a change in the dimensions or area of the land or any parcel of which the land is or was a part;or(iv)environmental protection,or the affect of any violation of these laws,ordinances or governmental regula- tions, except to the extent that a notice of the enforcement thereof or a notice of a defect, lien or encumbrance resulting from a violation or alleged violation affecting the land has been recorded in the public records at Date of Policy. (b)Any governmental police power not excluded by(a)above,except to the extent that a notice of the exercise thereof or a notice of a defect, lien or encumbrance resulting from a violation or alleged violation affecting the land has been recorded in the public records at Date of Policy. 2. Rights of eminent domain unless notice of the exercise thereof has been recorded in the public records at Date of Policy, but not excluding from coverage any taking which has occurred prior to Date of Policy which would be binding on the rights of a purchaser for value without knowledge. 3. Defects, liens, encumbrances, adverse claims or other matters: (a) created, suffered, assumed or agreed to by the insured claimant; (b) not known to the Company, not recorded in the public records at Date of Policy, but known to the insured claimant and not disclosed in writing to the Company by the insured claimant prior to the date the insured claimant became an insured under this policy; (c) resulting in no loss or damage to the insured claimant; (d) attaching or created subsequent to Date of Policy; or (e) resulting in loss or damage which would not have been sustained if the insured claimant had paid value for the estate or interest insured by this policy. 4. Any claim, which arises out of the transaction vesting in the Insured the estate or interest insured by this policy, by reason of the operation of federal bankruptcy, state insolvency, or similar creditors' rights laws, that is based on: (a) the transaction creating the estate or interest insured by this policy being deemed a fraudulent conveyance or fraudulent transfer; or (b)the transaction creating the estate or interest insured by this policy being deemed a preferential transfer except where the preferential transfer results from the failure: (i) to timely record the instrument of transfer; or (ii) of such recordation to impart notice to a purchaser for value or a judgment or lien creditor. NM 1 PA 10 ALTA Owner's Policy(10-17-92) Valid Only If Schedules A and B and Cover Are Attached Face Page Form 1190-56 ORIGINAL Owner' s Standard Policy SCHEDULE A Amount of Insurance : $165, 000 . 00 Policy No. 4028991A Premium: $ 290 . 00 REF# 935377DP Date of Policy: February 8, 1999 AT 11 :40 A.M. 1 . Name of Insured: CITY OF KENT, A MUNICIPAL CORPORATION 2 . The estate or interest in the land described herein and which is covered by this policy is : FEE SIMPLE ESTATE 3 . The estate or interest referred to herein is at Date of Policy vested in. THE NAMED INSURED 4 . The land referred to in this policy is described as follows : THE NORTH 1/2 OF THE NORTH 1/2 OF THE NORTHEAST 1/4 OF THE SOUTHEAST 1/4 OF THE NORTHEAST 1/4 OF SECTION 19, TOWNSHIP 22 NORTH, RANGE 5 EAST, W.M. ; EXCEPT THE WEST 130 FEET THEREOF; ALSO THE NORTH 30FEET OF THE WEST 130 FEET OF SAID NORTH 1/2 OF THE NORTH 1/2 OF THE NORTHEAST 1/4 OF THE SOUTHEAST 1/4 OF THE NORTHEAST 1/4 ; AND EXCEPT THE WEST 15 FEET FOR ROAD; SITUATE IN THE CITY OF KENT, COUNTY OF KING, STATE OF WASHINGTON. Countersigned• Authorized Officer or Agent Owner' s Standard Policy Policy No . 4028991 SCHEDULE B EXCEPTIONS FROM COVERAGE This policy does not insure against loss or damage (and the Company will not pay costs, attorneys' fees or expenses) which arise .by reason of : STANDARD EXCEPTIONS 1 . Taxes or assessments which are not now payable or which are not shown as existing liens by the records of any taxing authority that levies taxes or assessments on real property or by the public records; proceedings by a public agency which may result in taxes or assessments, or notices of such proceedings, whether or not shown by the records of such agency or by the public records . 2 . Any facts, rights, interests or claims which are not shown by the public records but which could be ascertained by an inspection of the land or which may be asserted by persons in possession, or claiming to be in possession, thereof . 3 . Easements, liens or encumbrances, or claims thereof, which are not shown by the public records . 4 . Discrepancies, conflicts in boundary lines, shortage in area, encroachments, or any other facts which a correct survey of the land would disclose, and which are not shown by the public records . S . Any lien, or right to a lien, for labor, material , services or equipment, or for contributions to employee benefit plans, or liens under Workmen' s Compensation Acts, not disclosed by the public records . 6 . (a) Unpatented mining claims; (b) reservations or exceptions in patents or in Acts authorizing the issuance thereof; (c) Indian treaty or aboriginal rights, including, but not limited to, easements or equitable servitudes; or, (d) water rights, claims or title to water, whether or not the matters excepted under (a) , (b) , (c) or (d) are shown by the public records . 7 . Right of use, control or regulation by the United States of America in the exercise of powers over navigation; any prohibition or limitation on the use, occupancy or improvement of the land resulting from the rights of the public or riparian owners to use any waters which may cover the land or to use any portion of the land which is now or may formerly have been covered by water. 8 . Any service, installation, connection, maintenance or construction charges for sewer, water, electricity, or garbage collection or disposal , or other utilities unless disclosed as an existing lien by the public -records . Page 2 Owner' s Standard Policy Policy No. 4028991 SPECIAL EXCEPTIONS 1 . General Taxes, as follows, together with interest, penalty and statutory foreclosure costs, if any, after delinquency: (1st half delinquent May l; 2nd half delinquent November 1) Tax Account No. Year Billed Paid Balance 192205-9207-00 1999 $1, 745 . 89 $0 . 00 $1, 745 . 89 NOTE: Taxes for 1999 are not yet due, but are payable February 15, 1999 . The levy code for the property herein described is 1525 for 1999 . 2 . Conservation (CON) Service Charge, as follows, together with interest, penalty and statutory foreclosure costs, if any, after delinquency: (ist half delinquent May 1; 2nd half delinquent November 1) Tax Account No . Year Billed Paid Balance 192205-9207-00 1999 $5 . 00 $0 . 00 $5 . 00 3 . Noxious Weed Charge, as follows, together with interest, penalty and statutory foreclosure costs, if any, after delinquency• (ist half delinquent May 1; 2nd half delinquent November 1) Tax Account No. Year Billed Paid Balance 192205-9207-00 1999 $1 . 03 $0 . 00 $1 . 03 4 . Liability for Surface Water Management (SWM) Service Charge, if any, which are not presently assessed, but may appear on future rolls . S . Liability for supplemental taxes for improvements which have recently been constructed on the land. Land improvements are not presently assessed, but may appear on future rolls . END OF EXCEPTIONS Page 3 f.a.t• w.�! C r-lJ ,. V It of My-� f)tt I )C � .... .t \ ,ff it• r- ,/. •t.•. •. e. .f�// b __f_j f_. O /� � JJy.-L �- �.��i�I. 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Ce►4 14 0 5.247TH CL ..a. a C .s t`'. aa, 1 Z i a'• '.•� ., I t aaeltsDrs • ? t a N _ !. ...,�a[ e•.e, -. i� .D�J //. ��_ ��, � i � � N4N� ^ h• � aa•��,,• <,.' .� COT�t i - ' This sketch is provided, without charge, for your information. It is not intended to show all matters related to the property including, but not limited to, area, dimensions, easements, en. croachments, or location of boundaries. It is not a part of, nor does it modify, the commitment or policy to which it is attached. The Company assumes NO LIABILITY for any maser related to this sketch. References should be made to an accurate survey for further information. CONDITIONS AND STIPULATIONS (Contigmil) 7. DETERMINATION, EXTENT OF LIABILITY AND COINSURANCE. (b) When liability and the extent of loss or damage has been definitely This policy is a contract of indemnity against actual monetary loss or fixed in accordance with these Conditions and Stipulations, the loss or damage sustained or incurred by the insured claimant who has suffered loss damage shall be payable within 30 days thereafter. or damage by reason of matters insured against by this policy and only to 13. SUBROGATION UPON PAYMENT OR SETTLEMENT. the extent herein described. (a) The liability of the Company under this policy shall not exceed the (a)The Company's Right of Subrogation. least of: Whenever the Company shall have settled and paid a claim under this (i) the Amount of Insurance stated in Schedule A; or, policy, all right of subrogation shall vest in the Company unaffected by any act of the insured claimant. (ii) the difference between the value of the insured estate or interest as The Company shall be subrogated to and be entitled to all rights and insured and the value _)f the insured estate or interest subject to the defect, remedies which the insured claimant would have had against any person or lien or encumbrance insured against by this policy. property in respect to the claim had this policy not been issued. If (b) In the event the Amount of Insurance stated in Schedule A at the requested by the Company, the insured claimant shall transfer to the Date of Policy is less than 80 percent of the value of the insured estate or Company all rights and remedies against any person or property necessary interest or the full consideration paid for the land, whichever is less, or if in order to perfect this right of subrogation. The insured claimant shall subsequent to the Date of Policy an improvement is erected on the land permit the Company to sue, compromise or settle in the name of the which increases the value of the insured estate or interest by at least 20 insured claimant and to use the name of the insured claimant in any percent over the Amount of Insurance stated in Schedule A, then this transaction or litigation involving these rights or remedies. Policy is subject to the following: If a payment on account of a claim does not fully cover the loss of the (i) where no subsequent improvement has been made, as to any partial insured claimant, the Company shall be subrogated to these rights and loss, the Company shall only pay the loss pro rata in the proportion that remedies in the proportion which the Company's payment bears to the the amount of insurance at Date of Policy bears to the total value of the whole amount of the loss. insured estate or interest at Date of Policy; or If loss should result from any act of the insured claimant, as stated (ii) where a subsequent improvement has been made, as to any partial above, that act shall not void this policy, but the Company, in that event, loss, the Company shall only pay the loss pro rota in the proportion that shall be required to pay only that part of any losses insured against by this 120 percent of the Amount of Insurance stated in Schedule A bears to the policy which shall exceed the amount, if any, lost to the Company by sum of the Amount of Insurance stated in Schedule A and the amount reason of the impairment by the insured claimant of the Company's right expended for the improvement. of subrogation. The provisions of this paragraph shall not apply to costs, attorneys' fees (b) The Company's Rights Against Non-insured Obligors. and expenses for which the Company is liable under this policy, and shall The Company's right of subrogation against non-insured obligors shall only apply to that portion of any loss which exceeds, in the aggregate, 10 exist and shall include, without limitation, the rights of the insured to percent of the Amount of Insurance stated in Schedule A. indemnities, guaranties, other policies of insurance or bonds, (c) The Company will pay only those costs, attorneys' fees and expenses notwithstanding any terms or conditions contained in those instruments incurred in accordance with Section 4 of these Conditions and Stipulations. which provide for subrogation rights by reason of this policy. 8. APPORTIONMENT. 14. ARBITRATION If the land described in Schedule A consists of two or more parcels abl Unless prohibited by applicable law, either the Company or the insured which are not used as a single site, and a loss is established affecting one or may demand arbitration plic to the Title Insurance Arbitration Rules more of the parcels but not all, the loss shall be computed and settled on a y pursuant pro rata basis as if the amount of insurance under this policy was divided of the American Arbitration Association. Arbitrable matters may include, pro rata as to the value on Date of Policy of each separate but are not limited to, any controversy or claim between the Company and P y subsequent to Date of parcel to the the insured arising out of or relating to this policy, any service of the unless a 1 albility or va ue husive of any asootherwise bevements en agrree pon as tto each parcel Company in connection with its issuance or the breach of a policy by the Company and the insured at the time of the issuance of this policy Insurance rvision oris other obligation.00 o less All shallarbitrable matters ted at the when the eon of Amount either the and shown by an express statement or by an endorsement attached to this Company or the insured. All arbitrable matters when the Amount of policy. Insurance is in excess of$1.000,000 shall be arbitrated only when agreed to 9. LIMITATION OF LIABILITY. by both the Company and the insured. Arbitration pursuant to this policy (a) If the Company establishes the title, or removes the alleged defect, and under the Rules in effect on the date the demand for arbitration is lien or encumbrance, or cures the lack of a right of access to or from the made or, at the option of the insured, the Rules in effect at Date of Policy land, or cures the claim of unmarketability of title, all as insured, in a shall be binding upon the parties. The award may include attorneys' fees reasonably diligent manner by any method, including litigation and the only if the laws of the state in which the land is located permit a court to completion of an a award attorneys' fees to a prevailing party. Judgment upon the award p y ct to therefrom, n shall have fully performed its rendered by the Arbitrator(s) may be entered in any court having obligations with respect to that matter and shall not be liable for any loss or damage caused thereby. jurisdiction thereof. (b) In the event of an litigation, includinglitigation b the Com an The law of the situs of the land shall apply to an arbitration under the or with the Company's consent, the Compan shall have no liability for Title Insurance Arbitration Rules. loss or damage until there has been a final determination by a court of A copy of the Rules may be obtained from the Company upon request. competent jurisdiction, and disposition of all appeals therefrom, adverse to the title as insured. 15. LIABILITY LIMITED TO THIS POLICY; POLICY ENTIRE (c)The Company shall not be liable for loss or damage to any insured CONTRACT. for liability voluntarily assumed by the insured in settling any claim or suit (a) This policy together with all endorsements, if any, attached hereto without the prior written consent of the Company. by the Company is the entire policy and contract between the insured and 10. REDUCTION OF INSURANCE; REDUCTION OR TERMINATION the Company. In interpreting any provision of this policy, this policy shall OF LIABILITY. be construed as a whole. (b) Any claim of loss or damage, whether or not based on negligence, All payments under this policy, except payments made for costs, and which arises out of the status of the title to the estate or interest attorneys' fees and expenses, shall reduce the amount of the insurance pro covered hereby or by any action asserting such claim, shall be restricted to canto. this policy. 11. LIABILITY NONCUMULATIVE (c) No amendment of or endorsement to this policy can be made except by a writing endorsed hereon or attached hereto signed by either the It is expressly understood that the amount of insurance under this President, a Vice President, the Secretary, an Assistant Secretary, or policy shall be reduced by any amount the Company may pay under any validating officer or authorized signatory of the Company. policy insuring a mortgage to which exception is taken in Schedule B or to 16. SEVERABILITY. which the insured has agreed, assumed, or taken subject, or which is In the event any provision of the policy is held invalid unenforceable hereafter executed by an insured and which is a charge or lien on the under applicable law, the policy shall be deemed not to include that provi- estate or interest described or referred to in Schedule A, and the amount sion and all other provisions shall remain in full force and effect. so paid shall be deemed a payment under this policy to the insured owner. 17. NOTICES, WHERE SENT. 12. PAYMENT OF LOSS. (a)No payment shall be made without producing this policy for endorsement All notices required to be given the Company and any statement in writing required of the payment unless the policy has been lost or destroyed,in which case proof to be furnished the Company shall include the number of this policy and shall be of loss or destruction shall be furnished to the satisfaction of the Company. addressed to TRANSNATION TITLE INSURANCE COMPANY, 1700 Market NM 1 PA 10 Street,Philadelphia,PA 19103-3990. ALTA Owner's Policy(10-17-92) Cover Page y acePage, Form 1190-58 ORIGINAL Valid Onl If F Schedules A and B Are Attached