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HomeMy WebLinkAboutACQ1996-103 - Original - Arnold E & Elmira Forner - PSA for Parcel #3422059106 - 04/08/1996 REAL ESTATE PURCHASE AND SALE AGREEMENT ARNOLD E. FORNER and ELMIRA FORNER, husband and wife (hereinafter referred to as "Seller"), hereby agree to sell; and the CITY OF KENT, a Washington municipal corporation (hereinafter referred to as "Purchaser"), hereby agrees to purchase, all in accordance with the following terms, provisions, and conditions, that certain real property located in City of Kent, King County, Washington, together with all improvements presently located thereon and commonly known as 14420 S.E. 288th, Kent, Washington. Said real property is hereinafter referred to as "Real Property" and is legally described on Exhibit A attached hereto, and is located as shown on Exhibit B. 1 . Earnest Money. Purchaser hereby deposits with Accountable Escrow Two Thousand and No/100 Dollars ($2,000.00) in the form of a City of Kent Purchase Order (the "Earnest Money"); provided, however that Purchaser shall deposit an additional Twenty-three Thousand and No/100 Dollars ($23,000.00) earnest money in the form of a City of Kent Purchase Order, with Accountable Escrow upon removal of Purchaser's feasibility contingency described in Paragraph 6 below. 2. Purchase Price. The purchase price for the Real Property Four Hundred Seventy-Five Thousand and No/100 ($475,000.00). 3. Payment of Purchase Price. The purchase price shall be paid all cash at Closing; including the Earnest Money Purchase Order previously held in Accountable Escrow. 4. Conveyance and Condition of Title. The title to the Real Property shall be conveyed by Seller to Purchaser at Closing by Statutory Warranty Deed, free and clear of all liens, encumbrances or defects except those described in Paragraph 5 below. 5. Title Insurance. At Closing, Seller shall cause Stewart Title Insurance Company to issue a standard form owner's policy of title insurance to Purchaser in an amount equal to the total purchase price of the Real Property, and insuring the Real Property to be free from all encumbrances or defects except: None. 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, other than government platting and subdivision requirements, utility easements; and other easements not inconsistent with Purchaser's intended use; and, reserved oil and/or mineral rights- -1 6. Feasibility Contingency. Purchaser's obligations under this Agreement are contingent and conditioned upon acceptance of all terms contained herein by the Kent City Council . Purchaser's obligations under this Agreement are also contingent and conditioned upon Purchaser's feasibility study. In this regard, Purchaser shall have until sixty (60) days from the date of mutual acceptance of this Agreement to determine, in Purchaser's sole and absolute discretion, if the Real Property is feasible for investment and /or development by Purchaser. If Purchaser fails to notify Seller of its approval of the Real Property, in writing, on or before the expiration of the feasibility period, then this Agreement shall be -terminated, and neither Purchaser nor Seller shall have any further rights, duties or obligations hereunder, except that the Earnest Money held in Accountable Escrow, by Purchaser to Seller shall be immediately returned to Purchaser. Purchaser agrees to return the Real Property to its original state (i.e., fill all boring holes, etc.). Purchaser's feasibility study may include (but is not limited to) soils studies, utilities availability and capacity, access availability, zoning, preliminary architectural and engineering studies, marketing feasibility. Purchaser agrees to conduct its feasibility study at its sole cost and expense; and if Purchaser does not remove the feasibility contingency on or before the expiration of the feasibility period, then Purchaser also agrees, if requested by Seller, to deliver to Seller copies of all information and documentation obtained by Purchaser in connection with its feasibility study. If Purchaser does remove its Feasibility Contingency within the 60-day feasibility period, then Purchaser shall pay an additional $23,000.00 in the form of a City of Kent Purchase Order described in Paragraph 1 above. 7. Closing of Sale. The sale shall be closed at the offices of Accountable Escrow, 1048 W. James, Suite 102, Kent, Washington (hereinafter referred to as "Closing Agent") on or before August 1, 1996. 8. Closing Costs. 8.1 Seller shall pay: The premium for a standard form coverage policy of title insurance in the amount of the Purchase Price: State of Washington real estate excise taxes, and one-half (1/2) of the escrow fees. 8.2 Purchaser shall pay: one-half (1/2) of the escrow fees. 9. Prorations. Real Property taxes for the current year and assessments, if any, shall be prorated between Purchaser and Seller as of the date of Closing. 10. Possession. Purchaser shall be entitled to possession of the Real -2 Property on Closing; provided, however, that Seller, at Seller's option shall have the right to remain in the premises for up to one hundred and twenty (120) days following Closing provided that Seller pays to Purchaser Twenty-Five Dollars ($25.) per day as rental therefore. Said rental shall be prepaid by Seller to Purchaser on or before the commencement of each 30-day period following Closing. If Seller elects to remain in the premises after Closing, Escrow Agent shall withhold Three Thousand Dollars ($3,000.00) at Closing as security for payment of the above-stated rental rate. If Seller, at any time, fails to timely make rental payments, Escrow Agent shall disburse such amounts due to Purchaser immediately upon Purchaser's demand. 11 . Representations and Warranties. Seller represents and warrants to Purchaser as follows: 11 .1 Hazardous Materials.To the best of Seller's knowledge (but with the understanding that Seller has not undertaken any special investigation including, but not limited to any environmental studies or reports), no hazardous or toxic waste or substance, have been deposited or spilled on or under the Real Property or exist on or under the Real Property. For purposes of this Agreemen or f "Hazardous Material" shall mean any material which is defined as hazardousxig(or rr substance, in any federal, state or local statute, regulation, ordinance or law applicable to the Real Property, or which is otherwise publicly regulated for reasons of human health or the environment, including, without limitation, asbestos and petrochemicals. i 1 1 .2 Underground Tanks. Except for the existing underground oil tank serving the residence presently located on the Real Property, Seller is not aware of any other underground gas, oil or other fuel tanks located on the Real Property. Seller agrees to indemnify, defend and hold Purchaser harmless from any and all costs or expenses (including reasonable attorney's fees) incurred by Purchaser on account of the untruth or inaccuracy of any of the foregoing representations and warranties. 11.3 Purchaser's Acceptance of Property. EXCEPT AS OTHERWISE SPECIFICALLY PROVIDED IN THIS AGREEMENT, SELLER MAKES NO REPRESENTATIONS OR WARRANTIES, EXPRESS OR IMPLIED, WRITTEN OR ORAL, RELATING TO THE CONDITIONS OR ANY OTHER ASPECT OF THE REAL PROPERTY INCLUDING, BUT NOT LIMITED TO, BOUNDARY LINES, SIZE OR ZONING OF THE REAL PROPERTY, OR ITS SUITABILITY FOR DEVELOPMENT OR USE BY PURCHASER AS A CITY PARK. FURTHER, IT IS UNDERSTOOD AND ACKNOWLEDGED BY THE PARTIES HERETO THAT PURCHASER IS PURCHASING THE REAL PROPERTY "WHERE IS AND AS IS". -3 12. Miscellaneous 12.1 Time is of the Essence. Time is of the essence of this Agreement. This Agreement shall be mutually accepted on or before May 7, 1996, or shall be null and void. In this regard, it is understood and agreed by Seller that Purchaser's obligations under this Agreement are contingent t upon approval and acceptance of this Agreement by Kent City Council on or before May 7, 1996. 12.2 Incorporation by Reference. All of the exhibits, documents, and writings referred to in this Agreement are incorporated herein by this reference, and are made a part hereof as if set forth in full. 12.3 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. 12.4 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: (i) All notices to be given to Purchaser shall be addressed as follows.. Helen Wickstrom, Superintendent Park Planning and Development 220 Fourth Avenue S. Kent, Washington 98032 (i i) All notices to be given to Seller shall be addressed as follows: Arny and Elmira Forner 14420 S.E. 288th Kent, Washington 98042 (206) 631-6714 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 date of the facsimile transmission, or on the third day following the day such notice is mailed in accordance with this paragraph. 12.5 Default. (i) Purchaser's Default. IF PURCHASER DEFAULTS -4 HEREUNDER, SELLER'S SOLE REMEDY SHALL BE LIMITED TO DAMAGES AGAINST PURCHASER IN THE LIQUIDATED AMOUNT OF THE EARNEST MONEY PREVIOUSLY PAID BY PUBCHASER. PURCHASER AND SELLER ES LIQUIDATED DAMAGES ON ACCOUNT OD T SAID AMOUNT CONSTITUTES THE DIFFICULTY OF MEASURING ACTUAL DAMAGES: AND SO AS TO AVOID OTHER COSTS AND EXPENSES TO EITHER PARTY IN CONNECTION WITH POTENTIAL LITIGATION ON ACCOUNT OF PURCHASER'S DEFAULT. PURCHASER AND SELLER BELIEVE SAID AMOUNT TO BE A FAIR ESTIMATE OF ACTUAL DAMAGES. (ii) Seller's Default. If Seller defaults hereunder, Purchaser shall have all the rights and remedies available at law or in equity. 12.6 Authority to Execute this Agreement. If the Purchaser or Seller is a corporation, partnership, trust, estate, or other entity, the person executing this Agreement on its behalf warrants his or her authority to do so, and to bind Purchaser and/or Seller and any other entities having authority or responsibility for Purchaser and/or Seller. 12.7 Binding Effect and Survival. This Agreement shall be binding upon the 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. 12.8 Date of Mutual Acceptance. For purposes of this Agreement, the date of mutual acceptance of this Agreement shall be the last date on which the parties to this Agreement (including Seller's shareholders) have executed this Agreement as indicated below. 12.9 Attorneys Fees and Costs. In the event of any conflict, claim or dispute between the parties hereto and arising out of or relating to the subject matter of this Agreement, whether or not such conflict, claim or dispute has its basis in law or in equity, the prevailing party shall be entitled to receive from the non-prevailing party(ies) all reasonable costs and expenses of every sort whatsoever including, but not limited to, arbitrators fees, mediation fees, deposition costs, expert witness fees, accounting expenses relating thereto, and actual attorneys fees incurred or expended whether or not arbitration or court proceedings are initiated, and including all such costs or expenses incurred or expended in arbitration, in trial, on appeal or in any bankruptcy or receivership proceedings. 12.10 Personal Property. Seller agrees that all of Seller's personal property, (whether considered of value or not by Seller), other than fixtures, will be removed from the premises at or prior to Qlosing; provide that if Seller determines to continue in possession of the premises pursuant to the rental arrangement described in Paragraph 10 above, then said personal property will be removed by Seller on or before the expiration of the rental period. For purposes of this -5 paragraph, Seller's personal property shall include all personal property of Seller located in, on or about the premises, provided that personal property shall not include fixtures permanently attached to the residence and/or other outbuildings located on the real property except for the following: 12.11 Seller's Obligation Contingent on Closing of Sale of Adjacent Parcels of Real Property. Notwithstanding any other provisions to this Agreement to the contrary, Purchaser and Seller understand, acknowledge and agree that Seller's obligations to sell the Real Property pursuant to this Agreement are contingent and conditioned upon the closing of the sale to Purchaser of certain adjacent real properties identified as follows: (i) Armstrong Property. Owner: George C. and Katherine Armstrong Property Address: 14608 S.E. 288th Street, Kent, Washington 980442 Parcel No. 342205-9098-03, Q-S-T-R-: S.E. 34-22-05. (ii) Kirby Property. Owner: Kenneth G. Kirby, Trustee of the Kenneth G. Kirby Revocable Trust Dated August 15, 1967 Parcel No.: 342205-9052-07: Q-S-T-R-: S.E. 34-22-05. IN WITNESS WHEREOF, the parties hereto have executed this Agreement on the date set forth below. PURCHASER: SELLER: CITY OF KENT, a Was 'ngton Municipal Corp r ions By: — — — —Its: ARNOLD E. F RNER Da 1996 Dated: y'1, 1996 4MIRA FORNER Dated: O� 1996 -6 ATTACHMENT A The south 360 feet of the west half of the southeast quarter of the southeast quarter of Section 34, Township 22 North, Range 5 East, W.M. in King County, Washington; EXCEPT the south 30 feet thereof, AND EXCEPT the west 30 feet as conveyed to King County for roads under Recording Numbers 1310858 and 1310859. LCT I LOT LOT 4 7 Z KC TV0030964 11p 3p 677095R IZI a2 ti 01 < C9 )",5 "o 114 C4 SE.2SSTH S7 NEV 2 31e 43- STEWART TITLE COMPANY OF.WASHINGTON, INC. NORTI-- 2, "A Tradition Order No. of Ercellence" IMPORTANT: This is not a Plat of Survey' It is furnished as a convenience to locate the land indicated hereon with reference to streets and other land. No liability is assumed by reason of reliance hereon. SOUTH ................................ Ci LU(o -wz¢> 0 N J L j cCJ i N0 NwF�2 Im J l w F- a a Z o Cj oxz c �w�- c ¢ a U W ¢Lw( c0 Pui O W zJ--¢ M N LLI pIaw� L _> ¢ a� O 0 O0m 2 Z. V *+ NQ Co ca H _ Q no0=a cq ;3. _CL tti C (J� ¢z w O pww> � a >IL Q < uz-iIz Z in J o0U�LL = n� 1 a g¢?z� _ wO W > F �wo¢W ct c x Q Q Q�Cz7Z¢ Q wwE75c¢ Q c T iLLw>z ic i �w0m¢o ' V Q Q. ww�v� O Q` ° — ZFLU Q Ul 6Lu0tu ¢ �Z C F- c m' cjo o�T�o as r=a00Z)m CE az cwco LD OI <m �` U mi z u wwr �' 1 o � O?Q ON G zoo �' O �w� o �w0 c I p ¢¢w o wp Q = N = cl w a� ccl: -o mow Zy �- Q LLE o j z n i- CLi N Q c Cl) CL Q �i ��¢ U dig a w J m J a 0 w H Q { N I o OW0C floc" w X 101 m '- 01 0' T n.O z .�p G. {) Z o mW Ww0Q� Elt S t CL 5w20LL WI a f]. RLO 3 V � O > G S Q OI co N Ln cOO O > T OI O co 0 oz co0OomQ U Z O } Z W C1 u Li T— d LL > cn z cn E 0 Q < QZ CN�7 u C O } M ° U o uj Y Q B U N • co 6 O O I d � U ❑ C ' ; j C •p — I rn STEWART TITLE COMPANY OF WASHINGTON, INC . 1201 Third Avenue, Suite 3800 Seattle, Washington 98101 Senior Title Officer, Mike Sharkey Title Officer, Diana L . Cardenas-Ryland Unit No . 12 FAX Number 206-343-1330 Telephone Number 206 -343-1327 Ci.ty, of Kent Parks Department Title Order No . : 278898 220 South Fourth, 4th Floor Kent , Washington 98032 Attention: Helen Wickstrom Customer Ref . : Forner A. L. T. A. COMMITMENT SCHEDULE A Effective Date : October 30 , 1995 , at 8 : 00 a .m. 1 . Pacific Northwest Title Insurance Company Policy (ies) to be issued: A. ALTA Owner ' s Policy Amount TO BE AGREED UPON Standard (X) Extended ( ) Premium Tax Proposed Insured: CITY OF KENT Amount $250 . 00 B . WORK CHARGE Tax $ 20 . 50 2 . The estate or interest in the land described herein and which is covered by this commitment is fee simple . 3 . The estate or interest referred to herein is at Date of Commitment vested in: ARNOLD E . FORNER and ELMIRA FORNER, husband and wife 4 . The land referred to in this commitment is situated in the County of King, State of Washington, and described as follows : The south 360 feet of the west half of the southeast quarter of the southeast quarter of Section 34 , Township 22 North, Range 5 East , W.M, in King County, Washington; EXCEPT the south 30 feet thereof ; AND EXCEPT the west 30 feet as conveyed to King County for roads under Recording Numbers 1310858 and 1310859 . STEWART TITLE COMPANY OF WASHINGTON, INC . A. L . T .A. COMMITMENT Schedule B Order No . 278898 I . The following are the requirements to be complied with: A. Instruments necessary to create the estate or interest to be insured must be properly executed, delivered and duly filed for record. B . Payment to or for the account of the grantors or mortgagors of the full consideration for the estate or interest to be insured. II . Schedule B of the Policy or Policies to be issued (as set forth in Schedule A) will contain exceptions to the following matters unless the same are disposed of to the satisfaction of the Company: A. Defects, liens , encumbrances , adverse claims or other matters, if any created, first appearing in the public records or attaching subsequent to the effective date hereof but prior to the date the proposed Insured acquires for value of record the estate or interest or mortgage thereon covered by this Commitment . B . GENERAL EXCEPTIONS : 1 . Rights or claims of parties in possession not shown by the public records . 2 . Public or private easements, or claims of easements, not shown by the public record. 3 . Encroachments, overlaps , boundary lire disputes , or other matters which would be disclosed by an accurate survey or inspection of the premises . 4 . Any lien, or right to a lien, for services , labor or material heretofore or hereafter furnished, imposed by law and not shown by the public records, or Liens under the Workmen ' s Compensation Act not shown by the public records . 5 . Any title or rights asserted by anyone including but not limited to persons , corporations , governments or other entities, to tide lands, or lands comprising the shores or bottoms of navigable rivers , lakes, bays , ocean or sound, or lands beyond the line of the harbor lines as established or changed by the United States Government . 6 . (a) Unpatented mining claims ; (b) reservations or exceptions in patents or in Acts authorizing the issuance thereof ; (c) water rights , claims or title to water. 7 . Any service, installation, connection, maintenance, capacity, or construction charges for sewer, water, electricity or garbage removal . 8 . General taxes not now payable or matters relating to special assessments and special levies , if any, preceding the same becoming a lien. 9 . Indian tribal codes or regulations , Indian treaty or aboriginal rights, including, but not limited to, easements or equitable servitudes . C . SPECIAL EXCEPTIONS : As on Schedule S, attached. Order No . 278898 A.L.T .A. COMMITMENT SCHEDULE B Page 2 SPECIAL EXCEPTIONS : 1 . GENERAL AND SPECIAL TAXES AND CHARGES : FIRST HALF DELINQUENT MAY 1, IF UNPAID : SECOND HALF DELINQUENT NOVEMBER 1 , IF UNPAID : YEAR: 1995 TAX ACCOUNT NUMBER: 342205-9106 -03 LEVY CODE : 5040 CURRENT ASSESSED VALUE : Land: $145 , 000 . 00 Improvements : $ 33 , 500 . 00 GENERAL TAXES : AMOUNT BILLED : $2 , 781 . 14 AMOUNT PAID : $1 , 390 . 57 AMOUNT DUE : $1 , 390 . 57 SPECIAL DISTRICT: AMOUNT BILLED : $1 . 25 AMOUNT PAID: $ . 63 AMOUNT DUE : $ . 62 NOTE : IF THE TAXES AND CHARGES CANNOT BE DIVIDED EQUALLY BY 2 , THE HIGHER AMOUNT MUST BE PAID FOR THE FIRST HALF PAYMENT . 2 . SURFACE WATER MANAGEMENT SERVICE CHARGE, LEVIED PURSUANT TO KING COUNTY ORDINANCE NO . 7590 OR CITY OF SEATTLE ORDINANCE NO . 114155 ; FIRST HALF PAYMENT DELINQUENT MAY 1 , IF UNPAID, SECOND HALF PAYMENT DELINQUENT NOVEMBER 1 , IF UNPAID : YEAR: 1995 AMOUNT BILLED : $85 . 02 AMOUNT PAID: $42 . 51 AMOUNT DUE : $42 . 51 TAX ACCOUNT NUMBER: 342205-9106 -03 NOTE : If the taxes cannot be divided equally by 2 , the higher amount must be paid for the first half payment . The above charges are payable with general taxes . Payment should be made to the King County Director of the Office of Finance . 3 . DEED OF TRUST AND THE TERMS AND CONDITIONS THEREOF : GRANTOR: Arnold E . Forner and Elmira Forner, husband and wife (continued) Order No . 278898 A. L. T.A. COMMITMENT SCHEDULE B Page 3 TRUSTEE : SCF Trustee Services, Inc . , a California Corporation BENEFICIARY: SC Funding Corporation, a California Corporation AMOUNT: $100 , 000 . 00 DATED: April 12 , 1994 RECORDED: April 22 , 1994 RECORDING NUMBER: 9404222158 The amount now secured by said Deed of Trust and the terms upon which the same can be discharged or assumed should be ascertained from the holder of the indebtedness secured. ASSIGNMENT OF SAID DEED OF TRUST : ASSIGNEE : Knutson Mortgage Corporation_, a Delaware corporation DATED : November 3 , 1994 RECORDED : December 29 , 1994 RECORDING NUMBER: 9412290454 4 . , Until the amount of the policy to be issued is provided to us , and entered on the commitment as the amount of the policy to be issued, it is agreed by every person relying on this commitment that we will not be required to approve any policy amount over $100 , 000 , and our total liability under this commitment shall not exceed that amou= . 5 . Payment of Real Estate Excise Tax, if required. The property described herein is situated within the boundaries of local taxing authority of unincorporated King County. Present Rate of Real Estate Excise Tax as of the date herein is 1 . 780 . NOTE 1 : Our examination discloses that the vestee herein does not own any contiguous property. NOTE 2 : The name and address of the current taxpayer according to the King County Assessors record is : Arnold E . & Elmira Forner 14420 Southeast 288th Kent, Washington 98042 (continued) EXHIBIT A Order No . 278898 A. L. T .A. COMMITMENT SCHEDULE B Page 4 NOTE 3 : The vestee herein acquired title by instrument recorded under Recording Number 8211230699 . NOTE 4 : The records of King County and/or our inspection indicate that the address of the improvement located on said land is : 14420 Southeast 288th Street Kent , Washington 98042 . NOTE 5 : A search of the records has disclosed nothing derogatory against Arnold E . Forner and Elmira Forner. END OF SCHEDULE E r Title to this property was examined by: Dick Chase Any inquiries should be directed to one of the title officers set forth in Schedule A. DC/mga/4928X J— �. � .Ji I. .11� lI•♦., •il sfl.illy. —. J•I.. — ..�.• `i,.� I Jfl.l• I Y LCT 10.6 LOTS LOT!. J; LOT4 KC 7810030964 �` .�•- y. ;,� `ip I TO SP E77097R r .. l.. 1! s`� v t� ty : � �r• iv � ! � If 1f N N ar•l 1. s�s>r M z3 o . ' I ti I i i I � I W 0 tlQ la oo� ar o 41 i A,0 , I Q� �¢� - 1,._..rn...ri.v.srg DO IDw'r r•J S E.288TH.57 i315.43 --.__ �.ri...w•+.r �i STEWART TITLE COMPANY OF•WASHINGTON, INC. NORTL "A Tradition Order No. ;1 7-E / 2, of Excellence„ IMPORTANT: This is not a Plat of Survey: It is furnished as a convenience to locate the land indicated hereon Nvith reference to streets and other land. No liability is assumed by reason of SOUTH hereon. Escrow No. 96242 Estimated Close Date: July 16, 1996 Reference: 14420 S.E. 288th Street Report Print Date: July 10, 1996 Kent, WA 98042 Page 1 Buyer ESTIMATED CLOSING STATEMENT BUYER: City of Kent DEBITS - - - - CREDITS - - CONSIDERATION: Total Consideration 475,000.00 TITLE CHARGES: 270.50 Owners Title Policy Record Statutory Warranty Deed 9.45, ESCROW FEES: Escrow Fees 600.00 225.00 credit for all-cash closing Balance Due Escrow 475,113.95 Totals $ 475,609.45 $ 475,609.45 NOTICE: This estimated closing statement is subject to changes, corrections or additions at the time of final computation of osing escrow statement. BY Ci of Kent ACCOUNTABLE ESCROW, INC. 1048 W. James, Suite 102 Rent, WA 98032 Escrow File No. 96242 File Name: City of Kent / FORNER CLOSING AGREEMENT AND ESCROW INSTRUCTIONS For Purchase and Sale Transaction The undersigned buyer and seller (referred to herein as "the parties") hereby designate and appoint ACCOUNTABLE ESCROW, INC. (referred to herein as "the closing agent") to act as their closing and escrow agent according to the following agreements and instructions. IT IS AGREED, AND THE CLOSING AGENT IS INSTRUCTED, AS FOLLOWS: Terms of Sale. The terms and conditions of the transaction which is the subject of these instructions (referred to herein as "the transaction") are set forth in the parties' Purchase and Sale Agreement, Earnest Money Agreement, or other written agreement, and any attachments, amendments or addenda to that agreement (referred to herein as "the parties' agreement") , which is made a part of these instructions by this reference. Any changes to the parties' agreement will be made a part of these instructions, without further reference, when signed by the parties and delivered to the closing agent. These instructions are not intended to amend, modify or supersede the terms and conditions of the parties' agreement and if there is any conflict or inconsistency between these instructions and the parties' agreement, the terms and conditions of the parties' agreement shall control. Description of Real Property. The real property which is the subject of the transaction (referred to herein as "the property") is identified in the parties' agreement. The documents required to close the transaction must contain the "legal description" of the property. If the parties' agreement does not yet contain the correct legal description, the parties or the real estate agent shall obtain an addendum setting forth the legal description as soon as possible and deliver it to the closing agent. Closing Date. The date on which the documents required to close the transaction are filed for record (referred to herein as "the closing date") shall be on or before the date for closing of the transaction specified in the parties' agreement or in an addendum extending that date. Documents. The closing agent is instructed to select, prepare, complete, correct, receive, hold, record and deliver documents as necessary to close the transaction. The closing agent may request that certain documents be prepared or obtained by the parties or their attorneys, in which case the parties shall deliver the requested documents to the closing agent before the closing date. Execution of any document will be considered approval of its form and contents by each party signing such document. Deposits and Disbursements of Funds. Before the closing date, each party shall deposit with the closing agent all funds required to be paid by such party to close the transaction, less any earnest money previously deposited with the real estate agent. The closing agent is authorized, but not required, to consider a lending institution's written commitment to deposit funds as the equivalent of a deposit of such funds, if all conditions of the commitment will be met on or before the closing date. All funds received by the closing agent shall be deposited in one or more of its general escrow or trust accounts with any bank doing business in the State of Washington and may be transferred to any other such accounts. The closing agent shall not be required to disburse any funds deposited by check or draft until it has been advised by its bank that such check or draft has been honored. All disbursements shall be made by the closing agent's check. Settlement Statement. The closing agent is instructed to prepare a settlement statement showing all funds deposited for the account of each of the parties and the proposed disbursements from such funds. No funds shall be disbursed until the parties have examined and approved the settlement statement. Some items may be estimated, and the final amount of each estimated item will be adjusted to the exact amount required to be paid at the time of disbursement. The settlement statement will be subject to audit and any errors or omissions may be corrected at any time. If any monetary error is found, the amount will be immediately paid by the party liable for such payment to the party entitled to receive it. Pro-rations. Adjustments or pro-rations of real estate taxes, and other charges if any, shall be made on a per-diem basis using a 365 day year, unless the closing agent is otherwise instructed. Title Insurance. The closing agent is instructed to obtain and forward to the parties a preliminary commitment for title insurance on the property and on any other parcel of real property that will be used to secure payment of any obligation created in the transaction (referred to herein as "the title report") . The closing agent is authorized to rely on the title report in the performance of its duties and shall have no responsibility or liability for any title defects or encumbrances which are not disclosed in the title report. Verification of Existing Encumbrances. The closing agent is instructed to request a written statement from the holder of each existing encumbrance on the property, verifying Page 1 its status, terms, balance owing and, if it will not be removed at closing, the requirements that must be met to obtain a waiver of any due -on -sale provision. The closing agent is authorized to rely upon such written statements in the performance of ifa duties. without liability or responsibility for their accuracy or completeness. seller if appropriate, that has agreed to provide all or part of the financing for the transaction or to which the buyer has made a loan application. The phrase "these instructions" refers to the agreements, instructions and provisions set forth in this document and all amendments, additions and supplements to this document. The phrase "the property" refers to the real property identified in the parties' agreement, including any other parcel of real property that will be used to secure payment of any obligation created in the transaction, and does not include any items of personal property unless otherwise specifically stated in these instructions. i such act. Approvals and Permits. The parties are advised to consult with their attorneys to determine whether any building, zoning, subdivision, septic system, or other construction or land use permits or approvals will be required, either before or after the closing date. The closing agent shall have no responsibility with respect to any such permit or approval, and shall have no liability arising from the failure of any party to obtain, or from the refusal of any governmental authority to grant, any such permit or approval. Compliance With Certain Laws. The parties are advised to consult with their attorneys to determine their responsibilities, if any, under the Consumer Protection Act, Truth -in -Lending Act, Interstate Land Sales Act or other similar laws. The closing agent shall have no responsibility for the parties' compliance, nor any liability arising from the failure of any party to comply, with any such law. Cit By: Arnold E. Forner Elmira Forner Accepted.(1 ACC NTA E�OW, INC. A BY: Sherian Grimes F`O ter Escrow Officer(' LPO, V.P. ESCROW INSTRUCTIONS LPO/Escrow Form 1E (10/89) &1989 F.B. Phillips Page 4 ACCOUNTABLE ESCROW, INC. 1048 W. James, Suite 102 Rent, WA 98032 Escrow File No. 96242 File Name: City of Kent / FORNER Supplement To CLOSING AGREEMENT AND ESCROW INSTRUCTIONS For Purchase and Sale Transaction Including Instructions to Record Documents and Disburse Funds This is a part of the Closing Agreement and Escrow Instructions signed by the parties under the Closing Agent's escrow file number set forth above. Except as expressly modified, changed or amended by this supplement, all terms and conditions of the Closing Agreement and Escrow Instructions, and any previous supplements, additions or amendments thereto, shall remain in effect. THE SELLER HAS APPROVED, SIGNED AND DEPOSITED THE FOLLOWING DOCUMENTS WITH THE CLOSING AGENT UNDER THESE INSTRUCTIONS: Statutory Warranty Deed Real Estate Excise Tax Return BY SIGNING THIS DOCUMENT, EACH PARTY ACKNOWLEDGES: Conditions of Parties' Agreement Satisfied. All terms and conditions of the parties' agreement have been met to my satisfaction, or will be met, satisfied or complied with outside of escrow. Title Report Approved. The Preliminary Commitment for Title Insurance, including the legal description of the property and all attachments, supplements and endorsements to that report, issued by STEWART TITLE COMPANY OF WASHINGTON, INC. under order number 278898, are approved by me and made a part of these instructions by this reference. Settlement Statement Approved. The settlement statement prepared by the closing agent is approved by me, made a part of these instructions by this reference, and I agree to pay my costs, expenses and other obligations itemized on that statement. I understand that any estimated amounts will be adjusted to reflect the exact amounts required when the funds are disbursed, that the settlement statement continues to be subject to audit at any time, and if any monetary error is found, that amount will be paid by the party liable for such payment to the party entitled to receive it. BY SIGNING THIS DOCUMENT, THE BUYER FURTHER ACKNOWLEDGES: Property Approved. I have had adequate opportunity to inspect the property and to determine the exact location of its boundaries. The location and physical condition of the property and any buildings, improvements, plumbing, heating, cooling, electrical or septic systems on the property are approved. I understand that all inspections and approvals of the location any physical condition of the property are my sole responsibility, and are not part of the closing agent's duties and responsibilities. I hereby release and agree to hold the closing agent harmless from any and all claims of liability for loss or damage arising or resulting from any physical condition or defect on the property, or from the location of its boundaries. Assumed Encumbrances Approved. I have had adequate opportunity to review the terms of payment, interest rates and conditions of any existing notes, deeds of trust, mortgages, contracts, assessments or other debts or obligations that I will assume and agree to pay in this transaction, and hereby approve the same. THE CLOSING AGENT IS INSTRUCTED TO PROCEED AS FOLLOWS: Instruction to Close. The closing agent is instructed to perform its customary closing duties under these instructions, to deliver and record documents according to these instructions, and to disburse the funds according to the settlement statement, adjusting estimated amounts, when the closing agent has the documents required to close the transaction in its possession and has, or will obtain when the documents have been delivered and recorded: 1. Sale proceeds for the seller's account in the sum of $ 475,000.00, to be disbursed according to the settlement statement, and 2. A policy of title insurance issued pursuant to the Preliminary Commitment for Title Insurance referred to above, insuring the buyer with [ x] owner's or ( ] purchaser's [ x] standard or ( ) extended coverage with liability of $ 475,000.00, having the usual clauses, provisions and stipulations customarily contained in the printed provisions and schedules of such policy forms, insuring the buyer's title to the property against all defects or encumbrances except those set forth in the printed exceptions and exclusions customarily contained in the printed provisions and schedules of such policy forms, matters attaching by, through or under the buyer, taxes not yet due, and the matters set forth in the following numbered paragraphs of Schedule B of the Preliminary Commitment for Title Insurance: none , and Completion or Correction of Documents. The closing agent is instructed to correct any errors found in any document deposited under these instructions, and to insert as necessary the closing date. Adjustments and Pro -rations. The closing agent is instructed to adjust and pro -rate as of CLOSE OF ESCROW. Page 1 Proceeds Check: Seller will pick up proceeds check. or Mail proceeds check to seller at: Additional Instructions: Buyer(s) and Seller(s) advise escrow agent that all the terms and conditions of their purchase and sale agreement and any addendums have been met and satisfied and instruct escrow agent to close, record and disburse funds upon receipt of buyers funds into escrow, and the simultanious closing of the Armstrong and Kirby property, as stated in the purchase and sale agreement. City of Kent advises escrow that Accountable Escrow is not to order hazard insurance on the property because the City will obtain and pay for its' own insurance on the subject property outside of the closing of this transaction. The City of Kent, as a Municipal Corporation, does not pay property taxes. King County does not accept any partial payments of property taxes by the seller from the 7/l/96 to the date of the recordation of the deed. King County will therefore require the entire 2nd half paid in full at closing and will refund directly to the sellers the overpayment of the 2nd half taxes from the date of recordation of the deed through 12/31/96. The seller can follow for this refund directly if they wish by calling King County Abstact Dept. at (206) 296-5141, Bryon, and referring to the tax parcel number 342205-9106-03. BY SIGNING THIS DOCUMENT, EACH PARTY ACKNOWLEDGES: The closing agent has not offered any legal advice or referred me to any named attorney, but has clearly requested that I seek independent legal counsel if I have any doubt concerning the transaction or these instructions. I have had adequate time and opportunity to read and understand these instructions and all other documents referred to in these instructions. Cit By: DATE: SUPPLEMENT TO ESCROW INSTRUCTIONS LPO/Escrow Form 2E (10/89) @1989 F.B. Phillips rp Arnold E. Forner Elmira Forner DATE: Page 2 PLEASE TYPE OR PRINT REAL ESTATE EXCISE TAX AFFIDAVIT This form is your receipt when stamped PLEASE SEE REVERSE by cashier - CHAPTER 82.45 RCW - CHAPTER 458-61 WAC For Use at County Treasurer's Office (Use Form No. 84-OOOIB for Reporting Transfers of Controlling Interest of Entity Ownership to the Department of Revenue) 96242 THIS AFFIDAVIT WILL NOT BE ACCEPTED UNLESS ALL AREAS 1-7 ARE FULLY COMPLETED Name Arnold E. Forner B Name tx w Elmira Forner husbandandrife N City of Kent/pp�� kk pp W Attn: Hele Wickstrrc�ttit' wa Street 14420 S. E. 288th-Q Street 220 4th Ave. S. 4th Floor �U City/State/Zip Kent, _ Wa. 98042_ _ _ oar City/State/zip Kent, WA 98032__. AllllRESS TO SEND ALL PROPERTY TAX RELATED CORRESPONDENCE ALL TAX PARCEL NUMBERS Tyi:'.1rA l;Effl} ' Nalll ' City of Kant Parks s Dept. 34 2205 - 9106— 03 Attn: Helen Wickstrart .»:::::::......... Street 220 4th Ave. S City/State/ZipKent WA 98032 r _ �_ ..... 0 LFGAL DESCRIPTION OF PROPERTY SITUATED IN ❑ UNINCORPORATED King COUNTY ❑ OR IN CITY OF -Kent Street Address (if property is improved): 14420 S. E. 288th Street, Kent, WA 98042 The south 360 feet of the rest half of the southeast quarter of the southeast quarter of Section 34, Township 22 North, Range 5 East, W.M., in King County, Washington; EXCEPT the south 30 feet thereof; AND EXCEPT the west 30 feet as conveyed to King County for roads under Recording Numbers 1310858 and 1310859. Is this property currently: YES NO Classified or designated as forest land? ❑ Chapter 84.33 RCW Classified as current use land (open space, faun ❑%un and agricultural, or timber)? Chapter 84.34 RCW I Exempt from property tax as a nonprofit ❑ organization? Chapter 84.36 RCW Seller's Exempt Reg. No. Receiving special valuation as historic ❑ property? Chapter 84.26 RCW Property Type: 1-1 land only ❑ land with new building -land with previously used building ❑ land with mobile home I I timber only ❑ building only Principal Use: ❑ Apt. (4 + unit) F7 residential I I timber ❑ agricultural ❑ commercial/industrial I I other U (1) NOTICE' OF CONTINUANCE (RCW 84.33 or RCW 84.34) If the new owner(s) of land that is classified or designated as current use or forest land wish to continue the classification or designation of such land, the new owncr(s) must sign below. If the new owner(s) do not desire to continue such classification or designation, all compensating or addi- tional tax calculated pursuant to RCW 84.33.120 and 140 or RCW 84.34.108 shall be due and payable by the seller or transferor at the title of sale. The county assessor must determine if the land transferred qualifies to continue classification or designation and must so indicate below. Siguauucs du not necessarily Incan the tail(] will remain in classification or designation. If it no longer qualifies, it will be removed and the corir- pcn:,ating taxes will be applied. All new owners must sign. This land I 1 does I 1 does not quality for continuance Date DEPUTY ASSESSOR (2) NO'FICE OF COMPLIANCE (Chapter 84.26 RCW) If the new owner(s) of property with special valuation as historic property wish to continue this special valuation the new owner(s) must sign below. If the new owner(s) do not desire to continue such special valuation, all additional tax calculated pursuant to Chapter 84.26 RCW, shall be due and payable by the seller or transferor at the time of sale. (3) OWNER(S) SIGNAT'URL Description of tangible personal property if included in sate (furniture, appliances, etc.) If exemption claimed, list WAC number and explanation. WAC No. (See/Sub) _ Explanation Type of Document Date of Document July 10, 1996 Gross Sale Price $ 475, 000.00 Personal Property (deduct) $ Taxable Sale Price $ 475, 000.00 Excise 'lax: State $ Local $ Delinquent Interest: State $ Local $ Delinquent Penalty: State $ Total Due $ 8,455.00 ;RE IS A $2.00 FEE FOR PROCESSING THIS FORM IF NO TAX 1S DUE AFFIDAVIT I certify under penalty of perjury under the laws of the state of Washington that the foregoing is true and correct (See back of this form). Signature of Grantor/Agent Name (print)Arnold E. Date & Place Signature of Grantee/Agee Name (print) Date: & Place Forner Perjury: Perjury is a class C felony which is punishable by imprisonment in it state: correctional institution for a maximum term of not more than five years, or by a fine in an amount fixed by the court of not more than five thousand dollars ($5,000.UU), or by both imprisonment and fine (RCW 9A.20.020 (IC)). 46 Rl v 8a 0001a th 16-9) (PD 11; 29'95) FOR TREASURER'S USE ONLY tilt. (f POLICY OF TITLE INSURANCE ISSUED BY SUBJECT TO THE EXCLUSIONS FROM COVERAGE, THE EXCEPTIONS FROM COVERAGE CONTAINED IN SCHEDULE B AND THE CONDITIONS AND STIPULATIONS, PACIFIC NORTHWEST TITLE INSURANCE COMPANY, INC., a Washington 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, Pacific Northwest Title Insurance Company, Inc. has caused this policy to be signed and sealed by its duly authorized officers as of the Date of Policy shown in Schedule A. A PACIFIC NORTHWEST TITLE Insurance Company, Inc. 0`D .,,Iv E ,IvE INNp94�0 ,r'ai• CORPoRATF ••� c �: SEAL vy 192iWiiZA 6 O? President - Countersigned by: Authorized Signatory ompany of Wa., Inc. Company SeaYile, 1,'JaShington City, State 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: 1. (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 improvement 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 effect of any violation of these laws, ordinances or governmental regulations. 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. 0.1093. 010150 ALTA OWNER'S POLICY — 10-17-92 EXCLUSIONS FROM COVERAGE Continued (continued and concluded from front side of Policy Face) Insured the estate or interest insured by this policy, by reason of the operation of federal bankruptcy, state 4. Any claim, which arises out of the transaction vesting in the insolvency, or similar creditors' rights laws, that is based on: the estate or interest insured by this policy being deemed a fraudulent conveyance or fraudulent transfer; or where the preferential transfer results from the failure: (a) the transaction creating (b) the transaction creating the estate or interest insured by this policy being deemed a preferential transfer except (i) to timely record the instrument of transfer: or to impart notice to a purchaser for value or a judgement or lien creditor. (ii) of such recordation CONDITIONS AND STIPULATIONS may take any appropriate action under the terms of this policy, whether or not it 1. DEFINITION OF TERMS. shall be liable hereunder, and shall not thereby concede liability or waive any exercise its rights under this paragraph, The following terms when used in this policy mean: provision of this policy. If the Company shall (a) "insured": the insured named in Schedule A, and, subject to any rights or have had against the named insured, those who it shall do so diligently. (c) Whenever the Company shall have brought an action or interposed a defenses the Company would succeed to the Interest of the named insured by operation of law as distinguished survivors, defense as required or permitted by the provisions of this policy, the Company may by a court of competent jurisdiction and , from purchase including, but not limited to, heirs, distributees, devices, representatives, next of kin, or corporate or fiduciary successors. pursue any litigation to final determination expressly reserves the right, in its sole discretion, to appeal from any adverse personal (b) "insured claimant": an insured claiming loss or damage. judgment or order. or requires the Company to prosecute (c) "knowledge" or "known": actual knowledge, not constructive knowledge the public records as (d) In all cases where this policy permits or for the defense of any action or proceeding, the insured shall secure to or notice which may be imputed insured by reason defined in this policy or any other records which impart constructive notice of matters provide the Company the right to So prosecute or provide defense in the action or all appeals therein, and permit the Company to use, at its option, affecting the land. (d) "land": the land described or referred to in Schedule A, and improvements proceeding, and the name of the insured for this purpose. Whenever requested by the Company, t e insured. at the Company's expense, shall give the Company all reasonable aid i in affixed thereto which by law constitute real property. The term "land" does not or referred to in Schedule proceeding. 8obtaining prosecuting or any action or rotion or securing evidence, ingstwitnesses, p 9 and (ii) in any other include any property beyond the lines of the area described A, nor any right, title, interest, estate or easement in abutting streets, roads, avenues, defending the action or proceeding, or effecting settlement, eirable to lawful twhich in the opinion may be necessaryris alleys, lanes, ways or waterways, but nothing herein shall modify or limit the extent land is insured by this policy. prejudiced establ shthe t tle to theestate orf infterest as insured. If the CompanyCompany the cooperation, the Company s to which a right of access to and from the "mortgage": deed of trust, trust deed. or other security by the failure of the insured to furnish required obligations to the insured under the policy shall terminate, including any liability or (a) mortgage, obligation to defend, prosecute, or continue any litigation, with regard to the matter instrument. (f) "public records": records established under state statutes at Date of Policy or matters requiring such cooperation. for the purpose of imparting constructive notice of matters relating to real property With respect to Section 1(a) IN) of 5 PROOF OF LOSS OR DAMAGE. to purchasers for value and without knowledge. Exclusions From Coverage, "public records" shall also include environmental In addition to and after the notices required under Sect ion 3 of these Conditions io loss damage signed a the liens filed in the records of the clerk of the United States district court and Stipulations have been provided the Company, proof be furnished to the Company within 90 protection for the district in which the land is located. and sworn to by the insured claimant shall claimant shall ascertain the facts giving rise to the loss or (g) "unmarketability of the title": an alleged or apparent matter affecting the from coverage, which would entitle a days after the insured damage. The proof of loss or damage shall describe the defect in, or lien or by this policy which title to the land, not excluded or excepted of the estate or interest described in Schedule A to be released from the encumbrance basisthe the title, or other matter insured against loss or d shall state, to the extent soprrejudiced purchaser obligation to purchase by virtue of a contractual condition requiring the delivery of consban stltutesof calcu calculating amount of the9ossnor damage. It the Company loss or damage, . marketable title. by the failure of the insured clared undr the imant to provide the required proof of lshallicy terminate, including to the insuosecuteeor 2. CONTINUATION OF INSURANCE AFTER CONVEYANCE OF TITLE. the Company's obligations tinue any litigation, with regard any liability or obligation to defend, p con The coverage of this policy shall continue in force as of Date of Policy in favor insured retains an estate or interest in the land, or to the matter or matters requiring such proof of loss or damage. be required mit to of an insured only so long as the holds an indebtedness secured by a purchase money mortgage given by a purchaser sure claimant y addition, o ,the in by adny authorized a ep representative of the Co paony and shall form the insured, or only so long as the insured shall have liability by reason ofpY of the the insured in any transfer of conveyancela examination na r exa 9 ll insption ddoc¢epresentative of th re Company, all covenants of warranty made by estate or interest. This policy shall not continue in force in favor of an purchaser designated by any autmination, pnes as authorized ledgers, checks, correspondence and memoranda, whether bearing from the insured of either (i) and estate or interest in the land, or (ii) an indebtedness records, books, reasonably pertain to the ony, re or after Date fauthori beforequested secured by a purchase money mortgage given to the insured. ed rep esentative of the Compawhich Fudrtherate the insured by any for 3. NOTICE OF CLAIM TO BE GIVEN BY INSURED CLAIMANT. claimant shall 9oant its examine,rmission, in respect and copy all records, books, ledgers, checks, The insured shall notify the Company promptly in writing (i) in case of any knowledge shall come to an the Company correspondence and memoranda in the custody or control of a third party, whit d as confidential esignateSect litigation as set forth in Section 4(a) below, (ii) in case insured hereunder of any claim of title or interest which is adverse to the title to the onshall not by sonably the insuredtain to the loss or claimantprovideddamage. All to the Compainf ny purrmatls ant to this it is estate or interest, as insured, and which might cause loss or damage for which the if title to the estate or interest, be disclosed to others unless, in the reasonable judgment of the Company, Failure of the insured claimant to submit Company may liable by virtue of this policy, or (iii) insured, is rejected as unmarketable. If prompt notice shall not be given to the necessary in the administration of the claim. Yproduce other reasonably requested ion or grant under as Company, then as to the insured all liability of the Company shall terminate with notice is required; provided, fore aminatioton reasonably necessary in from third parties as as required P liability of the Company under this policy as regard to the matter or matters for which prompt that failure to notify the Company shall in no case prejudice the rights of n this paragraph shall terminate any however, any insured under this policy unless the Company shall be prejudiced by the failure to that claim. SETTLE CLAIMS: TERMINATION OF and then only to the extent of the prejudice. g, OPTIONS TO PAY OR OTHERWISE 4. DEFENSE AND PROSECUTION OF ACTIONS: DUTY OF INSURED LIABILITY. In case of a claim under this policy, the Company shall have the following CLAIMANT TO COOPERATE. (a) Upon written request by the insured and subject to the options contained the Company,at its own cost additional options: (a) To Pay or Tender Payment of the Amount of Insurance. in Section 6 of these Conditions and Stipulations, and without unreasonable delay, shall provide for the defense of an insured in To pay or tender payment of the amount of insurance under this policy together by the insured claimant, which litigation in which any third party asserts a claim adverse to the title or interest as causes of action alleging a defect, lien or with any cost, attorneys' fees and expenses incurred by the Company, up to the time of payment or tender of pay ment insured, but only as to those stated encumbrance or other matter insured against by this policy. The Company shall were authorized and which the Company is obligated to pay. have the right to select counsel of its choice (subject to the right of the insured to the insured as to those stated causes of Upon the exercise by the Company of this option, all liability and obligations the Pa gorrcontinue object for reasonable cause) to represent action and shall not be liable for and will not pay the fees of any other counsel. The to the insured under this polic other than to make osecute,yment includingan liabilityor obligation defend, prosecute, Company will not pay any fees, costs or exincurred by the insured in the matters not insured against by this terminate, tion, and the policy shall to the Company for cancellation. any litigall be surrende With defense of those causes of action which allegeredd (b) To Pay or Otherwise Settle With Parties Other than the Insured or policy. (b) The Company shall have the right, at its own cost, to institute and prosecute in its opinion may be necessary the Insured Claimant. (i) to pay or otherwise settle with other parties for or in the name of an any action or proceeding or to do any other act which or desirable to establish the title to the estate or interest, as insured. The Company insured claimant any claim insured against under this policy, together with any costs, (continued and concluded on last page of this policy) SON Standard Coverage PACIFIC NORTHWEST TITLE INSURANCE COMPANY, INC. A.L.T.A. OWNER'S POLICY SCHEDULE A Order No.: 278898 Policy Date: July 19, 1996 at 2:27 p.m. 1. Name of Insured: Policy No.: 1093-010150 Policy Amount: $475,000.00 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 3. The estate or interest referred to herein is at date of Policy vested in: CITY OF KENT, a municipal corporation 4. The land referred to in this Policy is described as follows: The south 360 feet of the west half of that portion of southeast quarter of the southeast quarter of Section 34, Township 22 North, Range 5 East, W.M, in King County, Washington, lying east of the line parallel with and 30 feet east of the west boundary line of said southeast quarter of the southeast quarter; EXCEPT the south 30 feet thereof. Standard Coverage PACIFIC NORTHWEST . TITLE INSS OCE COMPANY, IN A. SCHEDULE B Policy No.: 1093-010150 This policy does not insure against loss or damage by reason of the following: GENERAL EXCEPTIONS: of parties in possession not shown by the public 1. Rights or claims records. asements, not shown by the public record. 2. Easements, or claims of e 3. Encroachments, overlaps, boundary line disputes, or other matters which would be disclosed by an accurate survey or inspection of the premises. 4. Any lien, or right to a lien, for services, labor or material heretofore or hereafter shedimposed the public recordsunder theWokmen1by wshown and not y sCompensationAcb not shown by the public records. 5. Any title or rights asserted by anyone including but not limited to persons corporations, governments or other entities, to tide lands, or lands gorthe sound, orolandsbottoms beyond thellineeoflthesharbor lakes, baysys,, ocean lines as established or changed by the United States Government. 6. (a) Unpatented mining claims; (b) reservations or exceptions in patents or in Acts authorizing the issuance thereof; (c) water rights, claims or title to water. 7. Taxes or special assessments which are not shown as existing liens by the public records. 8. Any service, installation, connection, maintenance, capacity, or water, electricity or garbage construction charges for sewer, removal. 9. Indian tribal code sbor nogulimited,tondeasementsyooregnotableal rights, including, servitudes. SPECIAL EXCEPTIONS: As on Schedule B, attached. (continued) A.L.T.A. OWNER'S POLICY SCHEDULE B Page 2 SPECIAL EXCEPTIONS: NONE MS/can/4928X Policy No.: 1093-010150 J — 2 7 ' - too e Y 7( ti •l/N •lIr JI. 1. iJl .l o� ✓/.• — � .y •• t. I /• 1.t..I r LcT �.� �• y e ` LOT - � LOTS. "r' L0T4 KC ?C0030964 S►977095R N O N f s.t / .vn. u.i�. JJ.• n_i iJ21. 2 r... � l.l.� I v1 z3 , Y � I I0 LIAI/ f:J I — �� S E. 2887H. ST. I 3 18.'43 ful STEWART TITLE COMPANY OF WASHINGTON, INC. NORTH "A Tradition Order No. of Ereellenee" IMPORTANT: This is not a Plat of Survey. It is furnished as a convenience to locate the land indicated hereon with reference to streets and other land. No liability is assumed by reason of SOUTH reliance hereon. CONDITIONS AND STIPULATIONS Continued (continued and concluded from reverse side of Policy Face) nses incurred by the insured claimant which were authorized 12. PAYMENT OF LOSS. cnall he made without producing this policy for endorsement i • F W ' G a r r ti• Y 11L S� r� V. i i lT _