HomeMy WebLinkAboutPK13-138 - Original - Schulte, Charles R. & Perreira, Michelle - Schulte Property for Clark Lake - 04/02/2013 Records Management
W ASHINKENT Document
GON
CONTRACT COVER SHEET
This is to be completed by the Contract Manager prior to submission
to City Clerks Office. All portions are to be completed.
If you have questions, please contact City Clerk's Office.
Vendor Name: Charles R. Schulte and Michelle K. Perreira
Vendor Number:
JD Edwards Number
Contract Number: Pi�[3— 3 b
This is assigned by City Clerk's Office
Project Name: Purchase and Sales Agreement for Schulte Property for Clark Lake
Description: ❑ Interlocal Agreement ❑ Change Order ❑ Amendment ® Contract
❑ Other:
Contract Effective Date: Termination Date: n/a
Contract Renewal Notice (Days): 0
Number of days required notice for terminatien-eFrenewal or amendment
Contract Manager: Brian Levenhagen (tp) Department: Parks Planning & Dev
Detail: (i.e. address, location, parcel number, tax id, etc.):
Purchase and Sales Agreement for Schulte property for Clark Lake Park Expansion
S Public\RecordsManagement\Forms\ContractCover\adcc7832 1 11/08
REAL ESTATE PURCHASE AND SALE AGREEMENT
WITH EARNEST MONEY PROVISION
This Agreement is entered between the CITY OF KENT, a Washington
municipal corporation, authorized by the Kent City Council on kinZ-
('Buyer"), whose mailing address is��220 4th Avvveenue South, Kent, Washington
98032-5895, and CHARLES R.sSE and MICHELLE K. PERREIRA, husband
and wife (collectively "Seller"), whose mailing address is 12627 SE 240th St., Kent,
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WA 98030, for the sale and purchase of real property as follows:
1. PROPERTY. The Property, which Buyer agrees to buy and Seller
agrees to sell, is known as King County Tax Parcel Number 212205-9043, located
at 12627 SE 240" St., Kent, WA 98030 ("Property"). The Property is legally
described in Exhibit "A"r attached hereto and incorporated herein by this
reference.
2. EARNEST MONEY. Within ten (10) working days of mutual
acceptance of this Agreement, Buyer shall deposit with Old Republic Title & Escrow
Ltd. ("Escrow Agent"), the sum of Nine Thousand Dollars and No/100ths
($9,000.00) in the form of a Certified Check, as refundable earnest money to be I
applied toward the purchase price of the Property payable at Closing.
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3. PURCHASE PRICE. The total purchase price for the Property is One
Hundred Ninety-One Thousand Dollars and No/100ths ($191,000.00), including
Earnest Money, payable on Closing.
4. CONTINGENCIES. This Agreement is contingent upon:
(a) Buyer's receipt of Seller's information contained in the Real Property
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Transfer Disclosure Statement ("Disclosure Statement"), the form of
which is set forth in Exhibit "B". Seller shall complete one form for
each dwelling unit or specify which dwelling unit is being referenced in
Buyer's Initials Seller's Initials LLGJ Seller's initialsA
Real Estate Purchase and Sale Agreement Page 1 of 9
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the form. The Disclosure Statement shaft be completed by the Seller I
within ten (10) days from the date of mutual acceptance of the
Agreement. Within five (5) days of Buyer's receipt of the Disclosure
Statement from Seller, Buyer shall either approve and accept the I
Disclosure Statement, or rescind the Agreement to purchase the
Property, at Its sole and absolute discretion. If Buyer does not deliver
a written rescission notice to Seller within the five (5) day period, the
Disclosure Statement will be deemed approved and accepted by Buyer.
(b) A feasibility Study as follows:
I. Buyer shall have thirty (30) days from the date of mutual
acceptance of this Agreement to determine, at Buyer's
sole and absolute discretion, If the Property Is feasible for
the purposes and uses Intended.
il. Buyer's feasibility study may Include (but is not limited
to) a Phase I and/or Phase II environmental assessment,
to determine If the Property is feasible for the purposes
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and uses intended.
fit. A Phase I environmental assessment generally will consist
of a review of title of ownership and land use, review of
geologic and hydrologic maps of the area, review of {
federal and state databases for known hazardous water
generators or contaminated sites, and a site visit. If the
Phase I review reveals the potential of a contaminated
site, a Phase II environmental assessment may be
conducted, which generally will consist of on-site
sampling, Including the digging or boring of test holes for
soil samples. BY EXECUTING THIS AGREEMENT, SELLER ;
HEREBY AUTHORIZES BUYER A RIGHT OF ENTRY ON TO
THE PROPERTY FOR THE PURPOSE OF CONDUCTING THIS
FEASIBILITY STUDY INCLUDING A PHASE I. AND IF
NECESSARY, A PHASE II ENVIRONMENTAL ASSESSMENT.
Buyer`s Initlalia�— Seller's ZhItlals� Seller's Initials—(-
Real Estate Purchase and Sale Agreement Page 2 of 9
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SELLER WILL BE NOTIFIED IF A PHASE II
ENVIRONMENTAL ASSESSMENT IS TO BE CONDUCTED,
Iv. Buyer agrees to conduct its feasibility study at its sole j
cost and expense; and if Buyer does not remove the
feasibility contingency, then Buyer also agrees, if
requested by Seller, to deliver to Seller copies of all
information and documentation obtained by Buyer In
connection with its feasibility study.
v. If Buyer falls to notify Seller of Its approval of the
Property, in writing, on or before the expiration of the
feasibility period, then this Agreement shall be
terminated, and neither Buyer nor Seller shall have any
further rights, duties or obligations hereunder, except
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that the Earnest Money in Escrow shall be immediately
returned to Buyer. Buyer agrees to return the Property to
its original state (i.e., fill all boring holes, etc.).
(c) Execution by Seller of documentation sufficient to terminate, to
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Buyer's satisfaction, that certain Well Agreement dated December 28,
1988 and recorded on January 3, 1989 under Recording No.
8901030642, as amended by that certain Well Agreement Addendum
executed and recorded on February 28, 1989 under Recording No.
8902281152. Termination of the amended Well Agreement must be
set for no later than June 30, 2013, provided that such termination
may be contingent upon Buyer's grant of an easement to the owner of
that parcel of real property immediately adjacent to the Property and
identified as "Parcel 2" in said Well Agreement, for use and
maintenance of the well and well system currently existing on the
Property.
(d) Final approval of the Kent City Council.
,�� a
Buyer's Initialsi�/ Seller'sInitial � seller's Initlalsm- a-
Real Estate Purchase and Sale Agreement Page 3 of 9
Should any of the contingencies not be met prior to Closing, then this Agreement
shall terminate and neither Buyer not Seller shall have any further rights, duties or
obligations hereunder, except that the Earnest Money in Escrow shall be
immediately returned to Buyer.
5. CONVEYANCE AND CONDITION OF TITLE. The title to the
Property shall be conveyed by Seller to Buyer at Closing by Statutory Warranty
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Deed, free and clear of all liens, encumbrances or defects except those described in
Schedule B, paragraph 12, of Title Report Number 5207110825, described in
Exhibit "C", attached hereto and incorporated herein by this reference. General
exclusions and exceptions common to the area and not materially affecting the
value of or unduly interfering with Buyer's reasonable use of the Property shall be
permitted. All monetary encumbrances and special exceptions listed in Exhibit"C",
other than those specifically noted above, are to be removed on or before Closing.
6. TITLE INSURANCE. At Closing, Buyer shall cause Old Republic Title
& Escrow, Ltd. ("Escrow Agent"), to issue standard coverage owner's policy of title
insurance to Buyer in an amount equal to the total purchase price of the Property.
For purposes of this Agreement, the following shall not be deemed encumbrances
or defects: rights reserved in federal patents or state deeds, building or use j
restrictions consistent with current zoning, and utility and road easements of
record. If title cannot be made so insurable prior to Closing, unless Buyer elects to
waive such defects or encumbrances, this Agreement shall terminate and the j
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Earnest Money shall be returned to Buyer.
7. CLOSING COSTS AND PRO-RATIONS. The Escrow Fee shall be paid '
by Buyer, except for those fees which are expressly limited by Federal Regulation.
The Excise Tax, if applicable, shall be paid by Seller. Buyer shall pay all recording
costs, title insurance premium, the costs of any survey, and the fees and expenses
of its consultants. Taxes for the current year, rents, interest, water, sewer and
other utility charges, if any, shall be paid by Seller, and prorated as of the day of
Closing, unless otherwise agreed.
Buyer's In1t1a1� Seller's Initials `i Seller's Initials 6
Real Estate Purchase and Sale Agreement Page 4 of 9
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8. CLOSING OF THE SALE. WITH THE UNDERSTANDING THAT TIME IS
OF THE ESSENCE FOR THIS AGREEMENT, this sale shall be closed within thirty
(30) days of the date of mutual acceptance of this Agreement, 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 Escrow Agent, all instruments and
monles required to complete the transaction in accordance with this Agreement.
For the purposes of this Agreement, Closing is defined as the date that all
documents are executed and the sale proceeds are available for disbursement to
the Seller.
9. CASUALTY LOSS. If, prior to Closing, Improvements on the Property
are destroyed or materially damaged by fire or other casualty, Buyer may
terminate this Agreement and the Earnest Money shall be returned to Buyer.
Alternatively, Buyer may elect to proceed with closing, in which case, at Closing,
Seller shall assign to Buyer all claims and right to proceeds under any property
Insurance policy and shall credit to Buyer the amount of any deductible provided
for In the policy.
10. POSSESSION. Buyer shall be entitled to possession on Closing.
11. SELLER'S REPRESENTATIONS. Seller represents:
(a) that Seller will maintain the Property In present or better condition
until time of agreed possession;
(b) that Seller has no knowledge of notice from any governmental agency
of any violation of laws relating to the Property except
(c) that if the Property Is leased, Seller will provide copies of each and
every lease to Buyer within one (1) working day upon request.
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Buyer's Initiaii Seller's Initlals2k� Se1Jer`s Tnitiais m
Real Estate Purchase and Sale Agreement Page 5 of 9
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12. SELLER'S ENVIRONMENTAL REPRESENTATIONS. Seller
represents that, to the best of Seller's knowledge, Seller is not aware of the
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
or prior to Closing or any act of omission occurring prior to Closing, the result of
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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 i
governmental entities, This provision 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. SELLER'S INDEMNITIES: Seller agrees to Indemnify and hold Buyer
harmless 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 or prior to Closing, 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 I
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.
14. DEFAULT AND ATTORNEY'S FEES.
(a) Buyer's Default. If Buyer defaults hereunder, Seller's sole and
exclusive remedy shall be limited to damages against Buyer in the
liquidated amount of the Earnest Money previously paid by Buyer.
Buyer and Seller intend that said amount constitutes liquidated
damages so as to avoid other costs and expenses to either party in
connection with potential litigation on account of Buyer's default.
zf Buyer's Initials� Setter's Initial Seller's Initials'n r 1 W
Real Estate Purchase and Sale Agreement Page 6 of 9
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 Costs. In the event of litigation to enforce any of
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the terms or provisions herein, each party shall pay all its own costs !
and attorney's fees.
IS. NOTICE TO SELLER. This form contains provisions for an agreement
for the purchase and sale of real estate. Buyer makes rio 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 the laws of the State of Washington at the time Seller enters into
the Agreement. THIS AGREEMENT HAS SIGNIFICANT LEGAL AND FINANCIAL
CONSEQUENCES. SELLER IS ADVISED TO SEEK INDEPENDENT LEGAL AND
FINANCIAL COUNSEL REGARDING THESE CONSEQUENCES.
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.
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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:
Jeff Watling, Director
Parks, Recreation & Community Services Department
City of Kent I
220 Fourth Avenue South
Kent, WA 98032
Fax Number: (253) 856-6050
(b) • All notices to be given to Seller shall be addressed as follows:
Buyer's Initlal Seller's initfalsij Seller's Initia,2 �
Real Estate Purchase and Sale Agreement Page 7 of 9
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Charles Side and Michelle Perrelra
I R624 c& 24ntfi 4Yr„ } ?q0 1/4-2-f-{- 4-(�£
Kent, WA ..98930 / l� t w AlW-�
(c) All notices to be given to Escrow Agent shall be addressed as follows:
Old Republic Title & Escrow, Ltd.
24604 104"' Ave. SE, Suite 102
Kent, WA 98030 i
Either party hereto may, by written notice to the other, designate such other
address for the giving of notices as 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 section.
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. i
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.
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21. EXPIRATION OF OFFER. Seller shall have only until 5:00 pm on the
15th of April, 2013, to accept the Agreement as written, by delivering a signed copy
thereof to the Buyer or Buyer's agent. If Seller does not so deliver a signed copy
Buyer's Teltla,1 r . Seller's In1t1a1dL.> seller's Initials my
Real Estate Purchase and Sale Agreement Page 8 of 9
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within said period, this Agreement shall lapse and all right of the parties hereunder j
shall terminate.
IN WITNESS WHEREOF, the parties hereto have executed this Agreement on
the date set forth below.
BUYER:
CITY OF KENT
By:
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Na e: S to Cooke
Its: or
Dated:
SELLER:
By: By:
Print me: r c ky Print Name: jb
Dated /7 { Dated: f
Mv.MbION+RaNI)Of/9 A./M1nW'340aklril�.p lfYab�nN.[en
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Buyer's Initfafs � Seller's Initial Seller's Initfals m�'f
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Real Estate Purchase and Sale Agreement Page 9 of 9
EXHIBIT A
LEGAL DESCRIPTION
The land teferred to Is situated In the County of King,City of Kent,State of Washington,and is
described as follows:
The North 360 feet of the East 100 feet of the West half of the East haff of the Northwest
quarter of the Narttreast qumter•of Section 21,Township 22 North,Range S East;W,M.;
EXCEPT county toad.
STMATE in the County of Kfng,State of Washington
ABOFtMATED LEGAL
Fortfon of the Northeast quarter of Section 21,Township 22 North,Range 5 Fast,W.M.
Tax Account No, 212205-9043-04
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EXHIBIT B
SELLER'S DISCLOSURE STATEMENT
INSTRUCTIONS TO THE SELLER
Please complete the following form. Do not leave any spaces blank. If the question clearly
does not apply to the property write "NA." If the answer Is "yes" to any * Items, please
explain on attached sheets. Please refer to the line number(s) of the question(s) when you
provide your explanation(s). For your protection you must date and sign each page of tills
disclosure statement and each attachment, Delivery of the disclosure statement must occur
not later than five business days, unless otherwise agreed, after mutual acceptance of a
written contract to purchase between a buyer and a 'seller.
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NOTICE TO THE BUYER
THE FOLLOWING DISCLOSURES ARE MADE BY SELLER ABOUT THE CONDITION OF THE
PROPERTY LOCATED AT 12627 SE 240t°ST., KENT, WASHINGTON, ("THE PROPERTY,),
OR AS LEGALLY DESCRIBED ON ATTACHED EXHIBIT A.
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SELLER MAKES THE FOLLOWING DISCLOSURES OF EXISTING MATERIAL FACTS OR
MATERIAL DEFECTS TO BUYER BASED ON SELLER'S ACTUAL KNOWLEDGE OF THE
PROPERTY AT THE TIME SELLER COMPLETES THIS DISCLOSURE STATEMENT. UNLESS YOU
AND SELLER OTHERWISE AGREE IN WRITING, YOU HAVE THREE BUSINESS DAYS FROM
THE DAY SELLER OR SELLER'S AGENT DELIVERS THIS DISCLOSURE STATEMENT TO YOU
TO RESCIND THE AGREEMENT BY DELIVERING A SEPARATELY SIGNED WRITTEN
STATEMENT OF RESCISSION TO SELLER OR SELLER'S AGENT. IF THE SELLER DOES NOT
GIVE YOU A COMPLETED DISCLOSURE STATEMENT, THEN YOU MAY WAIVE THE RIGHT TO
RESCIND PRIOR TO OR AFTER THE TIME YOU ENTER INTO A SALE AGREEMENT,
THE FOLLOWING ARE DISCLOSURES MADE BY SELLER AND ARE NOT THE
REPRESENTATIONS OF ANY REAL ESTATE LICENSEE OR OTHER PARTY. THIS
INFORMATION IS FOR DISCLOSURE ONLY AND IS NOT INTENDED TO BE A PART OF ANY
WRITTEN AGREEMENT BETWEEN BUYER AND SELLER,
FOR A MORE COMPREHENSIVE EXAMINATION OF THE SPECIFIC CONDITION OF THIS
PROPERTY YOU ARE ADVISED TO OBTAIN AND PAY FOR THE SERVICES OF QUALIFIED
EXPERTS TO INSPECT THE PROPERTY, WHICH MAY INCLUDE, WITHOUT LIMITATION,
ARCHITECTS, ENGINEERS, LAND SURVEYORS, PLUMBERS, ELECTRICIANS, ROOFERS,
BUILDING INSPECTORS, ON-SITE WASTEWATER TREATMENT INSPECTORS, OR
STRUCTURAL PEST INSPECTORS. THE PROSPECTIVE BUYER AND SELLER MAY WISH TO
OBTAIN PROFESSIONAL ADVICE OR INSPECTIONS OF THE PROPERTY OR TO PROVIDE
APPROPRIATE PROVISIONS IN A CONTRACT BETWEEN THEM WITH RESPECT TO ANY
ADVICE, INSPECTION, DEFECTS OR WARRANTIES.
Seller_Is/\4—Is not occupying the property.
• DATE: � SI:LLER;I) '�' SELLER:
Seller' Disclosure Statement- Page I of 10
Improved
I. SELLER'S DISCLOSURES:
*If you answer"Yes" to a question with an asterisk (*), please explain your answer and
attach documents, if available and not otherwise publicly recorded. If necessary, use an
attached sheet.
1. TITLE
-Yes [ ] No [ ] Don't know A. Do you have legal authority to sell the
property? If no, please explain.
[ ]Yes -VNo [ ] Don't know *B. Is title to the property subject to any of
the following?
(1) First right of refusal
(2) Option
(3) Lease or rental agreement
(4) Life estate?
[ ] Yes W_No [ ] Don't know *C. Are there any encroachments, boundary
agreements, or boundary disputes?
[ ] Yes MNo [ ] Don't know *D. Is there a private road or easement
agreement for access to the property?
[ ] Yes TANo [ ] Don't know *E. Are there any rights-of-way, easements,
or access limitations that may affect the Buyer's j
use of the property?
[ ] Yes J4 No [ ] Don't know *F. Are there any written agreements for joint
maintenance of an easement or right-of-way? j
[ ) Yes j No [ ] Don't know *G. Is there any study, survey project, or '
notice that would adversely affect the property?
[ ]Yes ] J No [ ] Don't know *H. Are there any pending or existing
assessments against the property?
[ ] Yes No [ ] Don't know *I. Are there any zoning violations, j
nonconforming uses, or any unusual restrictions
on the property that would affect future
construction or remodeling?
[ ] Yes [ ] No Don't know *J. Is there a boundary survey for the
property?
[ ] Yes No [ ] Don't know *K. Are there any covenants, conditions, or
restrictions recorded against the property?
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DATE: / SELLER: SELLER; I
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Seller's Di closure Statement- Page 2 of 10
Improved
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2. WATER `
A. Household Water
(1) The source of water for the property Is:
[ ] Private or publicly owned water system
[ ] Private well serving only the subject
Property j
*pNther water system
j Yes [ ] No [ ] Don't know * If shared, are there any written agreements?
/( ]`Yes [ ] No jj Don't know *(2) Is there an easement (recorded or
unrecorded) for access to and/or maintenance of
the water source?
I ]Yes Wo [ ] Don't know *(3) Are there any problems or repairs
needed?
'M Yes [ ] No [ ] Don't know (4) During your ownership, has the source
provided an adequate year-round supply of
potable water? If no, please explain.
[ ] Yes [j]-No [ ] Don't know *(5) Are there any water treatment systems
for the property? If yes, are they [ ] Leased
[ ] Owned.
[ ] Yes [ ] No Don't know *(b) Are there any water rights for the
property associated with its domestic water
supply, such as a water right permit, certificate,
or claim?
[ ]Yes [ ) No [Don't know (a) If yes, has the water tight, permit,
certificate, or claim been assigned,
transferred, or changed?
[ ] Yes �QNo `A Don't know (b) If yes, has all or any portion of the
water right not been used for five or more
successive years? (If yes, please explain)_
*(7) Are there any defects In the operation of
the water system (e.g. pipes, tank, pump, etc.)?
(If yes, please explain)
B. Irrigation Water
[ ]Yes VJNo [ ] Don't know (1) Are there any Irrigation water rights for
the property, such as a water permit, certificate,
or claim?
DATE: `7 SELLER ELLER: _
Seller's is losure Statement- Page 3 of 10 !
Improved
Yes [ ] No [ ] Don't know *(a) If yes, has all or any portion of the
water right not been used for five or more
successive years?
/ { ]Yes [ ] No [ ] Don't know *(b) If so, Is the certificate available? (If
yes, please attach a copy.)
Yes [ ] No [ ] Don't know *(c) If so, has the water right permit,
certificate, or claim been assigned,
transferred, or changed? If so, explain: I
[ ] Yes �A'_No I ] Don't know *(2) Does the property receive Irrigation water I
from a ditch company, Irrigation district, or other
entity? If so, please Identify the entity that
supplies Irrigation water to the property.,-
C. outdoor Sprinkler System i
[ ] Yes JNo [ ] Don't know (1) Is there an outdoor sprinkler system for
the property?
[ ] Yes [ ] No [ ] Don't know *(2) If yes, are there any defects in the
/ system?
N/ [ ]Yes [ ] No [ ] Don't know *(3) If yes, is the sprinkler system connected
(/ to Irrigation water?
3. SEWER/SEPTIC SYSTEM
A. The property Is served by:
-nPublic sewer system
[ ] On-site sewage system (including
pipes, tanks, drainfields, and all other
component parts)
[ I Other disposal system, please
describe:
XYes [ ] No [ ] Don't know B. If public sewer system service is available
to the property, is the house connected to the
sewer main? If no, please explain. i
[ ] Yes bCNo [ ] Don't know *C. Is the property subject to any sewage
system fees or charges In addition to those
covered in your regularly billed sewer or on-site
sewage system maintenance service?
D. , If ?e property Is connected to an on-
�sew a system:
DATE. SELLER, SELLER:, �� ` tv�—*�
Seller's Ol closure Statement - Page 4 of 10
Improved
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it
[] Yes [] No [] Don't know *(I) Was a permit Issued for Its
construction, and was it approved by the
local health department or district
following Its construction?
(2) When was It last pumped:
Yes [ ] No [ ] Don't know *(3) Are there any defects in the
operation of the on-site sewage system?
[ ] Don't know (4) When was it last Inspected?
By whom:
[ ] Don't know (5) For how many bedrooms was the
on-site sewage system approved?
Bedrooms
Yes [ ] No [ ] Don't know E. Are all plumbing fixtures, Including
laundry drain, connected to the sewer/on-site
sewage system? If no, please explain:
� [ ]Yes No [ ] Don't know *F. ' Have there been any changes or repairs to
the on-site sewage system?
/�[ ]Yes [ ] No [ ) Don't know G. Is the on-site sewage system, Including
the drainfield, located entirely within the
boundaries of the property? If no, please
explain.
Yes [ ] No [ ] Don't know *H. Does the on-site sewage system require
monitoring and maintenance services more
frequently than once a year? If yes, please
explain:
NOTICE: IF THIS RESIDENTIAL REAL PROPERTY DISCLOSURE STATEMENT IS BEING
COMPLETED FOR NEW CONSTRUCTION WHICH HAS NEVER BEEN OCCUPIED, THE SELLER
IS NOT REQUIRED TO COMPLETE THE QUESTIONS LISTED IN ITEM 4. STRUCTURAL OR
ITEM 5. SYSTEMS AND FIXTURES.
4. STRUCTURAL
[ ] Yes J4No [ ] Don't know *A. Has the roof leaked?
[ ] Yes [ ] Noj Don't know *B. Has the basement flooded or leaked?
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[ ] Yes [kNo [ ] Don't know *C. Have there been any conversions,
VZadions, or remodeling?
DATE: SELLER SELLER: �4�1��1.1�
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Seller's D closure Statement- Page 5 of 10
Improved
[ ] Yes [ ] No [ ] Don't know *(1) If yes, were all building permits
obtained?
[ ] Yes [ ] No [ ] Don't know *(2) If yes, were all final Inspections
obtained?
{�(Yes [ ] No j ] Don't know D. Do you know the age of the ho se? If
yes, year of original construction: rT�
[ ] Yes 0,Vo [ ] Don't know *E. Has there been an settling, slippage, or
sliding of the property or its Improvements?
[ )Yes [ No [ ] Don't know *F. Are there any defects with the following:
(If yes, please check applicable items and
explain.)
❑ Foundations Decks Exterior Walls
❑ Chimneys Interior Walls Fire Alarm
Doors Windows ❑ Patio
❑ Ceilings LJ Slab Floors Driveways
Pools Hot Tub El Saunas
❑ Sidewalks D Outbuildings U Fireplaces
❑ Garage Floors Q Walkwan LJ Siding
Ll Other Wood Stoves
[ ]Yes No [ ] Don't know *G. Was a structural pest or"whole house"
Inspection done? If yes, when and by whom was
the inspection completed?
[ ]Yes KNo [] Don't know H. During your ownership, has the property
had any wood destroying organism or pest
Infestation?
[ ] Yes [ ] No jA,Don't know 1. Is the attic insulated?
[ ] Yes No [ ] Don't know J. Is the basement insulated?
5. SYSTEMS AND FIXTURES
*A. If any of the following systems or fixtures
are included with the transfer, are there any
defects? If yes, please explain.
j ]Yes No [ ] Don't know • Electrical system, Including wiring,
switches, outlets, and service.
[ ]Yes No [ ] Don't know • Plumbing system, including pipes,
faucets, fixtures, and toilets.
[ ]Yes UNo [ ] Don't know// <'/ o4t water tank
f j
DATE: 7 l SELLE ELLER:
Seller's Dls losure Statement- Page 6 of 10
Improved i
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[ ]Yes [ ] No Don't know • Garbage disposal
[ ] Yes (x[No [ J Don't know •Appliances
[ ]Yes [ ] No KDon't know • Sump pump
[ ] Yes 0,No [ ] Don't know • Heating and cooling systems
[]Yes V No [ ] Don't know • Security system
[ ] owned [ ] Leased
[ ] other
*B. If any of the following fixtures or property
Is Included with the transfer, are they leased? (If
yes, please attach copy of lease.)
[ ]Yes No [ J Don't know Security system
[ ]Yes No [ ] Don't know Tanks (type):
[] Yes J<No ( ] Don't know Satellite dish
��[ ]Yes [ ] No ( ] Don't know other:
*C. Are any of the following kinds of wood
burning appliances present at the property?
[ ] Yes Vl�No [ ] Don't know (1) Woodstove?
[ ]Yes $0o [ ] Don't know (2) Fireplace insert?
[ )Yes KNo [ ] Don't know (3) Pellet stove?
( )Yes fXNo [ ] Don't know (4) Fireplace?
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1/A--[ ]Yes [ ] No [ I Don't know If yes, are all of the (1) woodstoves or (2)
fireplace Inserts certified by the U.S,
Environmental Protection Agency as clean
burning appliances to Improve air quality and
public health?
6, HOMEOWNERS'ASSOCIATION/COMMON INTIERESTS i
[ ]Yes KNo ( ] Don't know A. Is there a Homeowners'Association?
Name of the Association and contact Information
for an officer, director, employee, or other
authorized agent, if any, who may provide the
association's financial statements, minutes,
bylaws, fining policy, and other Information that
/� Is no �ubli available.
DATE: l SELLER SELLER:
Seller's DI closure Statement - Page 7 of 10
Improved
Yes [ ] No [ ] Don't know B. Are there regular periodic assessments:
$ per [ ) Month [ ] Year
[ ] Other i
[ ]Yes V�Vo [ ] Don't know *C. Are there any pending special
assessments?
[ ] Yes No j ] Don't know *D. Are there any shared "common areas"or
any joint maintenance agreements (facilities such
as walls, fences, landscaping, pools, tennis
courts, walkways, or other areas co-owned In
undivided Interest with others)? j
7. ENVIRONMENTAL
[ ] Yes No [ ] Don't know *A. Have there been any flooding, standing
water or drainage problems on the property that
affect the property or access to the property?
[ ] Yes No [ ) Don't know *B. Does any part of the property contain fill
dirt, waste or other fill material?
[ ] Yes KNo [ ] Don't know *C. Is there any material damage to the
property from fire, wind, floods, beach
movements, earthquake, expansive soils, or
landslides?
[ ] Yes 4 No [ ] Don't know D. Are there any shorelines, wetlands,
floodplains, or critical areas on the property?
[ ] Yes Wo [ ] Don't know *E. Are there any substances, materials, or
products on the property that may be
environmental concerns, such as asbestos,
formaldehyde, radon gas, lead-based paint, fuel
or chemical storage tanks, or contaminated soil
or water?
[ ] Yes No [ ] Don't know *F. Has the property been used for
commercial or Industrial purposes?
[ ] Yes j No [ ] Don't know *G. Is there any soil or groundwater
contamination?
( ] Yes RNo [ ] Don't know *H. Are there transmission poles or other
utility equipment Installed, maintained, or burled
on the property that do not provide utility service
to the structures on the property?
[ ] Yes V No [] Don't know *I. Has the property been used as a legal or
Illegal dumping site?
[ ]Yes pQ No [ ] Don't kno e property been used as an illegal
jgr)na acturing site?
DATE: 7 SELLE SELLER: \'� Qy,,,o�(�
5eller's Isclosure Statement - Page 8 of 10
Improved
i
[ ] Yes kNo [ ] Don't know *K. Are there any radio towers In the area j
that may cause Interference with cellular
telephone reception?
a. MANUFACTURED AND MOBILE HOMES
If the property Includes a manufactured or mobile home,
[ ]Yes [ ] No [ ] Don't know *A. Did you make any alterations to the
home? If yes, please describe the alterations:
�✓/�[ ]Yes [ ] No [ ] Don't know *8. Did the previous owner make any
alterations to the home?
Yes [ ] No [ ] Don't know *C. If alterations were made, were permits or
variances for theses alterations obtained?
9. FULL DISCLOSURE BY SELLERS
A. Other conditions or defects:
[ ] Yes ` 0o [ ] Don't know *Are there any other existing material defects
affecting the property that a prospective buyer
should know about?
B. Verification:
The foregoing answers and attached explanations
(if any) are complete and correct to the best of
my/our knowledge and I/we have received a
copy hereof. I/we authorize all of my/our real
estate licensees, If any, to deliver a copy of this
disclosure statement to other real estate
licensees and all prospective buyers of the
property.
DATE:#Dsclo3sure
SELLE SELLER: 1 •SlM)J ^C`
Seller' Statement - Page 9 of 10
Improved
NOTICE TO THE BUYER
INFORMATION REGARDING REGISTERED SEX OFFENDERS MAY BE OBTAINED FROM LOCAL
LAW ENFORCEMENT AGENCIES. THIS NOTICE IS INTENDED ONLY TO INFORM YOU OF
WHERE TO OBTAIN THIS INFORMATION AND IS NOT AN INDICATION OF THE PRESENCE OF
REGISTERED SEX OFFENDERS.
IT.. BUYER'S ACKNOWLEDGMENT
A. Buyer hereby acknowledges that: Buyer has a duty to pay diligent attention to any
material defects that are known to Buyer or can be known to Buyer by utilizing diligent
attention and observation.
B. The disclosures set forth in this statement and in any amendments to this statement
are made only by the Seller and not by any real estate licensee or other party,
C. Buyer acknowledges that, pursuant to RCW 64.06.050(2), real estate licensees are
not liable for Inaccurate Information provided by Seller, except to the extent that real estate ;
licensees know of such Inaccurate Information.
D. This Information Is for disclosure only and Is not Intended to be a part of the written
agreement between the Buyer and Seller.
E. Buyer (which term Includes all persons signing the "Buyer's acceptance" portion of
this disclosure statement below) has received a copy of this Disclosure Statement (including
attachments, If any) bearing Seller's signature. j
DISCLOSURES CONTAINED IN THIS DISCLOSURE STATEMENT ARE PROVIDED BY SELLER
BASED ON SELLER'S ACTUAL KNOWLEDGE OF THE PROPERTY AT THE TIME SELLER
COMPLETES THIS DISCLOSURE STATEMENT. UNLESS BUYER AND SELLER OTHERWISE
AGREE IN WRITING, BUYER SHALL HAVE THREE BUSINESS DAYS FROM THE DAY SELLER
OR SELLER'S AGENT DELIVERS THIS DISCLOSURE STATEMENT TO RESCIND THE
AGREEMENT BY DELIVERING A SEPARATELY SIGNED WRITTEN STATEMENT OF RESCISSION
TO SELLER OR SELLER'S AGENT. YOU MAY WAIVE THE RIGHT TO RESCIND PRIOR TO OR
AFTER THE TIME YOU ENTER INTO A SALE AGREEMENT.
BUYER HEREBY ACKNOWLEDGES RECEIPT OF A COPY OF THIS DISCLOSURE STATEMENT
AND ACKNOWLEDGES THAT THE DISCLOSURES MADE HER
IN ARE THOSE OF THE SELLER
ONLY, AND NOT OF ANY REAL EST LICENSEE O TH ARTY.
71-17
DATE: y lL 13 BUYER: ER;
BUYER'S WAIVER OF RI 0 RrdEIVE COMPLETED SELLER DISCLOSURE STATEMENT
Buyer has been advised of Buyer's right to receive a completed Seller Disclosure Statement.
Buyer waives that right. However, if the answer to any of the questions in the section
entitled "Environmental" would be "yes," Buyer may not waive the receipt of the
"Environmental"section of the Seller Disclosure Statement.
DATE: UY R BUYER
I
DATE:#DIclosure
SELLER: L "LER:_ �1 SW�1.Iv
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Seller' Statement - Page 10 of 10 j
Improved
fir. r EXHIBIT C
Order Number: 5207110825
SCHEDULE B
Customer Reference:SHULTE
I. REQUIREMENTS: j
1. Pay us the premiums, fees and charges for the policy.
I
2, Documents satisfactory to us creating the interest in the land and/or the mortgage to be
Insured must be signed, delivered,and recorded.
3• You must tell us in writing the name of anyone not referred to In this Commitment who will
get an Interest In the land or who will make a loan on the land, We may then make
additional requirements or exceptions.
I
4. Release(s)or Reconveyance(s)of appropriate Items.
S. If any document In the completion of this transaction Is to be executed by an attorney-In-
fact,the completed Power of Attorney form should be submitted for review prior to closing.
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Page 3 of 4 Pages
oanc 1616 OLD REPUBLIC NATIONAL TITLE INSURANCE COMPANY
06,
Order Number, 5207110825
SCHEDULE B continued
customer Reference:SHULTE
II. Schedule B of the policy or policies to be issued will contain exceptions to the following matters unless the same are \
disposed of to the satisfaction of the Company:
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.
1. Encroachments, or questions of location, boundary and/or area which an'accurate survey
may disclose.
2. Easements or claims of easements not disclosed by the public records.
3. Rights or claims of parties in possession not disclosed by the public records.
4. Any lien or right to lien for services, material, labor, and/or contributions to an employee
benefit fund or State Workers'Compensation that Is not disclosed by the public records.
S. Exceptions and reservations In United States patents, Indian tribal codes or regulations,
Indian treaty or aboriginal rights, including easements and equitable servitudes. Water
rights,claims or title to water.
6. Any service, installation or general connection charges for sewer,water, electricity,
telephone, gas and/or garbage removal.
7. General taxes not now payable, special assessments and/or special levies, if any,that are
not disclosed by the public records.
' I
8. Lien of Real Estate Excise Sale Tax upon any sale of said premises,as established by the
Washington State Department of Revenue.
NOTE: As of the date of this commitment, the current Excise Tax Rate is: .0178.
Confirm the current rate by contacting the following prior to closing:
Name of Agency King County Records and Election Division, Excise Tax Department
Telephone Number(206) 296-1843
I
Page 4 of 9 Pages
ornlc 1618 OLD REPUBLIC NATIONAL TITLE INSURANCE COMPANY
Ufa 4�� ,•+i�
I
if Order Number: 5207110825
9. GENERAL TAXES, PLUS INTEREST AND PENALTY AFTER DELINQUENT, 1ST HALF DELINQUENT
r
ON MAY 1, 2ND HALF DELINQUENT ON NOVEMBER 1:
i
Year 2013
Amount Billed $2,977.06 I
Amount Paid $0,00
Parcel No, 212205-9043-04
Levy Code 1519
Assessed Valuatior)
Land $173,000.00
Improvements $21,000,00
10, Deed of Trust to secure an Indebtedness of the amount stated below and any other amounts
payable under the terms thereof,
Amount $40,000.00
Trustor/Borrower Michelle K. Perrelra and Charles R. Schulte,wife and husband
Trustee : Old Republic
Beneficiary/Lender NWA Federal Credit Union
Dated February 4,2000
Recorded March 8,2000 in Official Records under Recording Number
20000308000788 ,
NOTE: Said Deed of Trust appears to secure a Revolving Line or Equity Line of Credlt. If this
loan is to be paid off and reconveyed through this transaction, the Company will require a
written statement from the Beneficiary/Lender that a freeze is In effect on the account,and
that the demand for payoff from the Beneflcary/Lender states that a reconveyance will be
Issued upon payment of the amounts shown therein,
11. Deed of Trust to secure an Indebtedness of the amount stated below and any other amounts i
payable under the terms thereof, i
Amount $153,900.00
i
Trustor/Borrower Charles R. Schulte and Michelle K. Perrelra, husband and wife
Trustee Chicago Title
Beneficiary/Lender National City Mortgage Co,
Dated : December 19, 2002 ,
Recorded December 26, 2002 in Official Records under Recording Number
20021226002698
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Page 5 of 9 Pages
ORTIC 1618 OLD REPUBLIC NATIONAL TITLE INSURANCE COMPANY
ay --
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Order Number: 5207110825
Substitution of Trustee under said Deed of Trust, ti `
Executed By PNC Bank, Natlonal Association, successor in Interest to
National City Real Estate Services, LLC,successor by merger
to National City Mortgage, Inc., formerly known as National
City Mortgage Co.
New Trustee Northwest Trustee Services,Inc.,a Washington corporation
Recorded : January 14, 2013 In Official Records under Recording Number
20130114001964
Notice of Trustee's Sale under said Deed of Trust,
Executed By : Northwest Trustee Services, Inc.
Recorded January 28, 2013 In OfFclal Records under Recording Number
20130128001641 i
Sale Date May 31, 2013
i
12. Terms and provisions as contained In an Instrument, j
1
Entitled Well Agreement
Recorded January 3, 1989 in Official Records under Recording Number
8901030642
Weil Agreement Addendum recorded February 28, 1989 in Official Records under Recording
Number 8902281152.
13. An easement affecting that portion of said land and for the purposes stated herein and
Incidental purposes as provided In the following
Granted To King County,a political subdivision of the State of Washington
For Right to make all necessary slopes for cuts and fills
Dated January 10, 1996
Recorded : January 18, 1996 In Official Records under Recording Number
9601181012
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Page 6 of Pages
OKM 1618 OLD REPUBLIC NATIONAL TITLE INSURANCE COMPANY
i
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j Order Number: 5207110825
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14. Terms and provisions as contained in an Instrument,
Entitled Ordinance No.3447
Recorded October 12, 1999 in Official Records under Recording Number
19991012000148
Which, among other things, provides: Granting unto King County Water District No. III, Its
successors and assigns,the right, privilege, authority, and franchise for twenty-five years to
lay,construct, extend, repair, renew and replace water pipes, mains, and facilities under,
along and/or across certain designated streets, avenues, roads,alleys, rights-of-way and
other public places
15. Terms and provisions as contained in an Instrument,
Entitled : Resolution No.459-11-02
Recorded November 18, 2002 In Official Records under Recording Number
20021118003502
I
16. Matters as contained or referred to in an Instrument,
Entitled Survey
Recorded February 5,1992 in Official Records under Recording Number
9202059010
Encroachment of fence along the East boundary line of the property herein described
17. Title is to vest in persons not yet revealed, and when so vested will be subject to matters
disclosed by a search of the records against their names.
I
---------------^----Informational Notes-------------------
A. NOTE: According to the public records, there have been no deeds conveying the property
described In this report recorded within a period of 36 months prior to the date hereof
except as follows:
NONE
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Page 7 of 9 Pages
ORT1C 1618 OLD REPUBLIC NATIONAL TITLE INSURANCE COMPANY
;b
* * * 19020 33rd Avenue W„ Suite 360
OLD REPUBLIC Lynnwood,WA98036
* T i T L s & E s c R o w (425)776-1970 Fax: (425)776-5710
RECEIVED
AIN 2(), 2013
T O KEN r
To: City of Kent ENGINEERING DEPT Date May 24, 2013
220 4th Avenue South,
Kent, WA 98032
Order No. 5207110825
Ref No. SHULTE �.
0 �
ENCLOSED IS YOUR FINAL POLICY. THANK YOU FOR CHOOSING OLD REPUBLIC TITLE. r
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A 4W �M
Owner's Policy of Title Insurance
American Land Title Association Owner's Policy 6-17-06
* * rt
* * Policy Number A46014-OX-157507
* 't Issued by Old Republic National Title Insurance Company
* Any notice of claim and any other notice or statement in writing required to be given to the Company
* * under this Policy must be given to the Company at the address shown in Section SS of the Conditions.
*
COVERED RISKS
SUBJECT TO THE EXCLUSIONS FROM COVERAGE,THE EXCEPTIONS FROM COVERAGE CONTAINED IN SCHEDULE B,AND THE CONDITIONS,
OLD REPUBLIC NATIONAL TITLE INSURANCE COMPANY,a Minnesota corporation(the"Company")insures,as of Date of Policy and,to the extent
stated in Covered Risks 9 and 10,after Date of Policy,against loss or damage,not exceeding the Amount of Insurance,sustained or incurred by the
Insured by reason of:
1. Title being vested other than as stated in Schedule A,
2. Any defect in or lien or encumbrance on the Title. This Covered Risk includes but is not limited to insurance against loss from:
(a) A defect In the Title caused by
(1) forgery,fraud, undue influence,duress,incompetency,incapacity,or impersonation;
(in failure of any person or Entity to have authorized a transfer or conveyance;
(iii) a document affecting Title not properly created,executed,witnessed,sealed, acknowledged, notarized,or delivered;
(iv) failure to perform those acts necessary to create a document by electronic means authorized by law;
(v) a document executed under a falsified,expired,or otherwise invalid power of attorney;
(vi) a document not properly filed, recorded,or indexed in the Public Records including failure to perform those acts by electronic means
authorized by law; or
(vii) a defective judicial or administrative proceeding.
(b) The lien of real estate taxes or assessments imposed on the Title by a governmental authority due or payable,but unpaid.
(c) Any encroachment,encumbrance,violation,variation,or adverse circumstance affecting the Title that would be disclosed by an accurate
and complete land survey of the Land. The term"encroachment"includes encroachments of existing improvements located on the Land
onto adjoining land, and encroachments onto the Land of existing improvements located on adjoining land.
3. Unmarketable Title.
4. No right of access to and from the Land.
S. The violation or enforcement of any law,ordinance, permit,or governmental regulation(including those relating to building and zoning)
restricting, regulating,prohibiting,or relating to
(a) the occupancy, use,or enjoyment of the Land;
(b) the character,dimensions,or location of any improvement erected on the Land;
(c) the subdivision of land;or
(d) environmental protection
if a notice,describing any part of the Land,is recorded in the Public Records setting forth the violation or intention to enforce,but only to the
extent of the violation or enforcement referred to in that notice,
6. An enforcement action based on the exercise of a governmental police power not covered by Covered Risk 5 if a notice of the enforcement
action,describing any part of the Land,is recorded in the Public Records,but only to the extent of the enforcement referred to in that notice.
7, The exercise of the rights of eminent domain if a notice of the exercise,describing any part of the Land, is recorded in the Public Records.
8, Any taking by a governmental body that has occurred and is binding on the rights of a purchaser for value without Knowledge.
9. Title being vested other than as stated in Schedule A or being defective
(a) as a result of the avoidance in whole or in part,or from a court order providing an alternative remedy,of a transfer of all or any part of the
title to or any interest in the Land occurring prior to the transaction vesting Title as shown in Schedule A because that prior transfer
constituted a fraudulent or preferential transfer under federal bankruptcy,state insolvency,or similar creditors'rights laws; or
(b) because the instrument of transfer vesting Title as shown in Schedule A constitutes a preferential transfer under federal bankruptcy,state
insolvency, or similar creditors'rights laws by reason of the failure of its recording in the Public Records
(i) to be timely, or
(ii) to impart notice of its existence to a purchaser for value or to a judgment or lien creditor.
10. Any defect in or lien or encumbrance on the Title or other matter included in Covered Risks 1 through 9 that has been created or attached or has
been filed or recorded in the Public Records subsequent to Date of Policy and prior to the recording of the deed or other instrument of transfer in
the Public Records that vests Title as shown in Schedule A.
The Company will also pay the costs,attorneys'fees,and expenses incurred in defense of any matter insured against by this Policy,but only to the
extent provided in the Conditions.
Issued through the Office of.,
Old Republic Title, Ltd. Old Republic National Title Insurance Company
19020 33rd Avenue W., Suite 360 400 Second Avenue South
Lynnwood,WA 98036 Minneapolis,Minnesota 55401
BY F70$&Rt
•/t Aif95t A SWr9f2ry
Authorized Signatory
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 that arise by reason of:
1, (a) Any law,ordinance,permit,or governmental regulation (including those relating to building and zoning)restricting, regulating,prohibiting,or
relating to
(i) the occupancy, use, or enjoyment of the Land;
(ii) the character,dimensions,or location of any improvement erected on the Land;
(iii) the subdivision of land; or
(iv) environmental protection;
or the effect of any violation of these laws,ordinances,or governmental regulations. This Exclusion 1(a)does not modify or limit the coverage
provided under Covered Risk S.
(h) Any governmental police power. This Exclusion 1(b)does not modify or limit the coverage provided under Covered Risk 6.
2. Rights of eminent domain. This Exclusion does not modify or limit the coverage provided under Covered Risk 7 or 8.
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(however,this does not modify or limit the coverage provided under Covered Risk 9 and 1D);
or
(e) resulting in loss or damage that would not have been sustained if the Insured Claimant had paid value for the Title.
9. Any claim,by reason of the operation of federal bankruptcy,state insolvency,or similar creditors'rights laws,that the transaction vesting the Title as
shown in Schedule A,is
(a) a fraudulent conveyance or fraudulent transfer;or
(b) a preferential transfer for any reason not stated in Covered Risk 9 of this policy.
5. Any lien on the Title for real estate taxes or assessments imposed by governmental authority and created or attaching between Date of Policy and
the date of recording of the deed or other instrument of transfer in Public Records that vests Title as shown in Schedule A.
ALTA Owner's Policy(6-17-06)
Old Republic National Title Insurance Company
400 Second Avenue South Minneapolis,Minnesota 55401
SCHEDULE
Policy No: A46014-OX-157507 Amount of Insurance: $ 191,000.00
Order No: 5207110825 Premium: $ 703.00
Date of Policy: May 21st, 2013 at 3:46:00 PM Address Reference: 12627 Southeast 240th Street
Kent, WA 98030
1. Name of Insured:
CITY OF KENT, a Washington Municipal Corporation
2. The estate or interest in the Land that is insured by this policy is:
Fee
3. Title is vested in:
CITY OF KENT, a Washington Municipal Corporation
4. The Land referred to in this policy is described as follows:
The North 360 feet of the East 100 feet of the West half of the East half of the Northwest quarter of the
Northeast quarter of Section 21, Township 22 North, Range 5 East, W.M.;
EXCEPT county road.
SITUATE in the County of King, State of Washington.
Page 1 of 3 Pages
OLD REPUBLIC NATIONAL TITLE INSURANCE COMPANY
Policy No A46014-OX-157507
ALTA Owner's Policy(6-17-06)
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 that arise by
reason of:
1. Encroachments, or questions of location, boundary and/or area which an accurate survey may
disclose.
2. Easements or claims of easements not disclosed by the public records.
3. Rights or claims of parties in possession not disclosed by the public records.
4. Any lien or right to lien for services, material, labor, and/or contributions to an employee benefit fund
or State Workers'Compensation that is not disclosed by the public records.
5„ Exceptions and reservations in United States patents, Indian tribal codes or regulations, Indian treaty
or aboriginal rights, including easements and equitable servitudes. Water rights, claims or title to
water.
6. Any service, installation or general connection charges for sewer, water, electricity, telephone, gas
and/or garbage removal.
7. General taxes not now payable; special assessments and/or special levies, if any, that are not
disclosed by the public records.
8. GENERAL TAXES, PLUS INTEREST AND PENALTY AFTER DELINQUENT; 1ST HALF DELINQUENT
ON MAY 1; 2ND HALF DELINQUENT ON NOVEMBER 1:
Year 2013
Amount Billed $2,977.06
Amount Paid $1,488.53
Parcel No. 212205-9043-04
Levy Code 1519
Assessed Valuation
Land $173,000.00
Improvements $21,000.00
Page 2 of 3 Page
OLD REPUBLIC NATIONAL TITLE INSURANCE COMPANY
Policy No A46014-0X-157507
ALTA Owner's Policy(6-17-06)
9. Terms and provisions as contained in an instrument,
Entitled Well Agreement
Recorded 1 January 3, 1989 in Official Records under Recording Number
890103C642
Well Agreement Addendum recorded February 28, 1989 in Official Records under Recording
Number 8902281152.
10. An easement affecting that portion of said land and for the purposes stated herein and
incidental purposes as provided in the following
Granted To King County, a political subdivision of the State of Washington
For Right to make all necessary slopes for cuts and fills
Dated January 10, 1996
Recorded January 18, 1996 In Official Records under Recording Number
9601181012
It. Terms and provisions as contained in an instrument,
Entitled Ordinance No. 3447
Recorded October 12, 1999 in Official Records under Recording Number
19991012000148
Which, among other things, provides: Granting unto King County Water District No. 111, its
successors and assigns, the right, privilege, authority, and franchise for twenty-five years to
lay, construct, extend, repair, renew and replace water pipes, mains, and facilities under,
along and/or across certain designated streets, avenues, roads, alleys, rights-of-way and
other public places
12. Terms and provisions as contained in an instrument,
Entitled Resolution No. 459-11-02
Recorded November 18, 2002 in Official Records under Recording Number
20021118003502
13, Matters as contained or referred to in an instrument,
Entitled Survey
Recorded February 5, 1992 in Official Records under Recording Number
9202059010
Encroachment of fence along the East boundary line of the property herein described
Page 3 of 3 Page
OLD REPUBLIC NATIONAL TITLE INSURANCE COMPANY
Attached to:
ENDORSEMENT Policy No: A4 014-OX-157507
Order No: 5207110825
* *** OLD REPUBLIC NATIONAL
* TITLE INSURANCE COMPANY
Ar* * a Corporation,of Minneapolis, Minnesota
The Company hereby assures the Insured that the Company will not deny liability under the policy or any endorsements issued
therewith solely on the grounds that the policy and/or endorsement(s) were issued electronically and/or lack of signatures in
accordance with Paragraph 15(c)of the Conditions.
This endorsement is issued as part of the policy. Except as it expressly states, it does not (1) modify any of the terms and
provisions of the policy, (ii) modify any prior endorsements, (iii) extend the Date of Policy, or (iv) increase the Amount of
Insurance. To the extent a provision of the policy or a previous endorsement is inconsistent with an express provision of this
endorsement, this endorsement controls. Otherwise, this endorsement is subject to all of the terms and provisions of the
policy and of any prior endorsements.
OLD REPUBLIC NATIONAL TITLE INSURANCE COMPANY
A Stock Company
400 Second Avenue South, Minneapolis,Minnesota 55401
(612)371-1111
y6J. YY�ll.ey 9a
Countersigned; * ��
By President
B
F/ A
y Attest ' - Secretary
Validating Officer
Page 1 of 1 Pages
F'rG15 TAM 2926-06 Attached to:
ENDORSEMENT Policy No:A46014-OX-157507
Order No: 5207110825
OLD REPUBLIC NATIONAL
* * TITLE INSURANCE COMPANY
a Corporation,of Minneapolis, Minnesota
(1) This endorsement shall be effective only if at Date of Policy there is located on the Land described in the
policy a one-to-four family residential structure, in which the Insured resides or intends to reside. For the
purpose of this endorsement the term "residential structure" is defined as the principal dwelling structure
located on the Land together with all improvements thereon related to residential use of the property except
plantings of any nature, perimeter fences and perimeter walls.
(2) The Company hereby insures the Insured against loss or damage sustained by reason of:
(a) the existence at Date of Policy of any statutory lien for labor or materials attaching to the Title arising
out of any work of improvement on the Land, in progress or completed at Date of Policy, except those
liens arising out of a work of improvement for which the Insured has agreed to be responsible.
(b) the removal of the residential structure or the interference with the use thereof for ordinary
residential purposes as the result of a final court order or judgment, based upon the existence at Date
of Policy of:
(1) any encroachment of said residential structure or any part thereof onto adjoining lands, or
onto any easement shown as an exception in Schedule B of the policy, or onto any
unrecorded subsurface easement;
(2) any violation on the Land of enforceable covenants, conditions or restrictions, provided that
this coverage shall not refer to or include the terms, covenants and conditions contained in
any lease, sub-lease,or contract of sale referred to in the policy;
(3) any violation of applicable zoning ordinances to the extent that such ordinances regulate (a)
area, width or depth of the land as a building site for the residential structure; (b) floor
space area of the residential structure; (c) set back of the residential structure from the
property lines of the land; or(d) height of the residential structure.
(c) damage to the residential structure resulting from the exercise of any right to use the surface of the
Land for the extraction or development of the minerals excepted from the description of the Land or
shown as a reservation in Schedule B.
As used in this endorsement, the words "covenants, conditions or restrictions" do not refer to or include any covenant,
condition or restriction (a) relating to obligations of any type to perform maintenance, repair or remediation on the land, or (b)
pertaining to environmental protection of any kind or nature, including hazardous or toxic matters, conditions or substances
except to the extent that a notice of a violation or alleged violation affecting the land has been recorded in the public records at
Date of Policy and is not excepted In Schedule B.
This endorsement is issued as part of the policy. Except as it expressly states, it does not (i) modify any of the terms and
provisions of the policy, (ii) modify any prior endorsements, (iii) extend the Date of Policy, or (iv) increase the Amount of
Insurance. To the extent a provision of the policy or a previous endorsement is inconsistent with an express provision of this
endorsement, this endorsement controls. Otherwise, this endorsement is subject to all of the terms and provisions of the policy
and of any prior endorsements.
Dated : May 21st, 2013 OLD REPUBLIC NATIONAL TITLE INSURANCE COMPANY
A Stock Company
400 Second Avenue South, Minneapolis, Minnesota 55401
(612)371-1111
( Fr: ffesont
Cauntersigned'a/,.,✓/J
By Attest .. socrersy
Validating Officer
T I N1 2926 06
Page 1 of I Pages
Frc.ls Ho3-o6 ENDORSEMENT
Attached y No: A4601414-OX-1575D7
Order No: 5207110825
** * * ** OLD REPUBLIC NATIONAL
* * TITLE INSURANCE COMPANY
* * * a Corporation,of Minneapolis,Minnesota
*
This Endorsement shall be effective only if at Date of Policy there is located on the Land a one-to-four family residential
structure, in which the Insured resides or intends to reside.
The Company, recognizing the current effect of inflation on residential real property valuation and intending to provide
additional monetary protection to the Insured, hereby modifies said Policy, as follows:
1. Notwithstanding anything contained in said Policy to the contrary, the Amount of Insurance is subject to
cumulative annual upward adjustments in the manner and to the extent hereinafter specified.
2 ''Adjustment Date'' Is defined, for the purpose of this Endorsement; to be 12:01 a.m. on the first January 1
which occurs more than six months after the Date of Policy and on each succeeding January 1.
3. An upward adjustment will be made on each of the Adjustment Dates, as defined above, by increasing the
maximum Amount of Insurance (as said amount may have been increased theretofore under the terms of
this Endorsement) by the same percentage, if any, by which the United States Department of Commerce
Composite Construction Cost Index(base period will be the base period in effect on the first January 1 which
occurs more than six months after the Date of Policy) for the month of September immediately preceding
exceeds such Index for the month of September one year earlier; provided, however, that the maximum
Amount of Insurance in force shall never exceed 150% of the Amount of Insurance stated in Schedule A or
said Policy, less the amount of any claim paid under said Policy which, under the terms of the Conditions
reduces the Amount of Insurance in force. There shall be no annual adjustment in the Amount of Insurance
for years In which there is no Increase in said Construction Cost Index,
4. In the settlement of any claim against the Company under said Policy, the Amount of Insurance in force as of
the date on which the Insured Claimant first learned of the assertion or possible assertion of such claim, or as
of the date of receipt by the Company of the first notice of such claim, whichever shall first occur.
This endorsement is issued as part of the policy. Except as it expressly states, it does not(i) modify any of the terms and
provisions of the policy, (ii) modify any prior endorsements, (iii)extend the Date of Policy, or(iv) increase the Amount of
Insurance. To the extent a provision of the policy or a previous endorsement is inconsistent with an express provision of this
endorsement, this endorsement controls. Otherwise, this endorsement is subject to all of the terms and provisions of the policy
and of any prior endorsements.
Dated : May 21st, 2013 OLD REPUBLIC NATIONAL TITLE INSURANCE COMPANY
A Stock Company
4D0 Second Avenue South,Minneapolis,Minnesota 554DI
(612)371-1111
Countersigned:
By � � Attea ."2PCf6fdry
Validating Officer
11M H03-06 (8-1-D7)
Page l of 1 Pages
CONDITIONS 2. CONTINUATION OF INSURANCE
The coverage of this policy shall continue in force as of Date of Policy
1. DEFINITION OF TERMS in favor of an Insured,but only so long as the Insured retains an
The following terms when used in this policy mean: estate or interest in the Land,or holds an obligation secured by a
(a) "Amount of Insurance':The amount stated In Schedule A,as purchase money Mortgage given by a purchaser from the Insured,or
may be increased or decreased by endorsement to this policy, only so long as the Insured shall have liability by reason of warranties
increased by Section 8(b),or decreased by Sections 10 and 11 in any transfer or conveyance of the Title.This policy shall not
of these Conditions. continue in force in favor of any purchaser from the Insured of either
b "Date of Policy": designated as of Polic The date desi " in (i)an estate or interest in the Land,or(ii)an obligation secured by a
( ) g Po
licy"
Schedule A. purchase money Mortgage given to the Insured.
(c) "Entity": A corporation,partnership,trust,limited liability 3. NOTICE OF CLAIM TO BE GIVEN BY INSURED CLAIMANT
company,or other similar legal entity.
(d) "Insured":The Insured named in Schedule A. The Insured shall notify the Company promptly in writing(i)in case of
(i) The term"Insured"also includes any litigation as set forth in Section S(a)of these Conditions,(ii)in case
Knowledge shall come to an Insured hereunder of any claim of title or
(A) successors to the Title of the Insured by operation of interest that is adverse to the Title,as insured,and that might cause
law as distinguished from purchase, including heirs, loss or damage for which the Company may be liable by virtue of this
devisees,survivors,personal representatives,or next policy,or(iii)if the Title,as insured,is rejected as Unmarketable Title.
of kin; If the Company is prejudiced by the failure of the Insured Claimant to
(6) successors to an Insured by dissolution, merger, provide prompt notice,the Company's liability to the Insured Claimant
consolidation,distribution,or reorganization; under the policy shall be reduced to the extent of the prejudice.
(C) successors to an Insured by its conversion to another
kind or Entity; 4. PROOF OF LOSS
(D) a grantee of an Insured under a deed delivered In the event the Company Is unable to determine the amount of loss
without payment of actual valuable consideration or damage,the Company may,at its option,require as a condition of
conveying the Title payment that the Insured Claimant furnish a signed proof of loss. The
(1) if the stock, shares,memberships,or other proof of loss must describe the defect,lien,encumbrance,or other
equity interests of the grantee are wholly-owned matter insured against by this policy that constitutes the basis of loss
by the named Insured, or damage and shall state,to the extent possible,the basis of
(2) if the grantee wholly owns the named Insured, calculating the amount of the loss or damage.
(3) if the grantee is wholly-owned by an affiliated
Entity of the named Insured, provided the 5. DEFENSE AND PROSECUTION OF ACTIONS
affiliated Entity and the named Insured are both (a) Upon written request by the Insured,and subject to the options
wholly-owned by the same person or Entity,or contained in Section 7 of these Conditions,the Company,at its
(4) if the grantee is a trustee or beneflciary of a own cost and without unreasonable delay,shall provide for the
trust created by a written instrument established defense of an Insured in litigation in which any third party asserts
by the Insured named in Schedule A for estate a claim covered by this policy adverse to the Insured. This
planning purposes. obligation is limited to only those stated causes of action alleging
(ii) With regard to(A),(B),(C),and(D)reserving,however, matters insured against by this policy. The Company shall have
all rights and defenses as to any successor that the the right to select counsel of its choice(subject to the right of the
Company would have had against any predecessor Insured to object for reasonable cause)to represent the Insured
Insured. as to those stated causes of action. It shall not be liable for and
(e) 'Insured Claimant": An Insured claiming loss or damage. will not pay the fees of any other counsel. The Company will not
(f) "Knowledge"or"Known":Actual knowledge,not constructive pay any fees,costs,or expenses incurred by the Insured in the
knowledge or notice that may be imputed to an Insured by defense of those causes of action that allege matters not insured
reason of the Public Records or any other records that impart against by this policy.
constructive notice of matters affecting the Title. (b) The Company shall have the right, in addition to the options
(g) "Land":The land described in Schedule A,and affixed contained in Section 7 of these conditions,at its own cost,to
improvements that by law constitute real property.The term institute and prosecute any action or proceeding or to do any
"Land"does not include any property beyond the lines of the other act that in its opinion may be necessary or desirable to
establish the Tile,as insured,or to prevent or reduce loss or
area described in Schedule A,nor any right,title, interest,
damage to the Insured
estate, or easement in abutting streets,roads,avenues,alleys, , The Company may take any appropriate
be
lanes,ways,or waterways, but this does not modify or limit the action under the terms of this Polley,whether not it shall
extent that a right of access to and from the Land is insured by liable to the Insured. The exercise of these rights shall not bee
an
this policy. admission of liability or waiver of any provision of This policy. If
the Company exercises its rights under this subsection,it must do
(h) "Mortgage": Mortgage,deed of trust,trust deed,or other so diligently.
security instrument, including one evidenced by electronic (c) Whenever the Company brings an action or asserts a defense as
means authorized by law. required or permitted by this policy,the Company may pursue the
(i) "Public Records": Records established under state statutes at litigation to a final determination by a court of competent
Date of Policy for the purpose of imparting constructive notice jurisdiction,and it expressly reserves the right,in its sole
of matters relating to real property to purchasers for value and discretion,to appeal any adversejudgment or order,
without Knowledge.With respect to Covered Risk S(d),"Public
Records"shall also include environmental protection liens filed 6. DUTY OF INSURED CLAIMANT TO COOPERATE
in the records of the clerk of the United States District Court for (a) In all cases where this policy permits or requires the Company to
the district where the Land is located. prosecute or provide for the defense of any action or proceeding
(j) 'Title The estate or interest described in Schedule A. and any appeals,the Insured shall secure to the Company the
(k) "Unmarketable Title":Title affected by an alleged or apparent right to so prosecute or provide defense in the action or
matter that would permit a prospective purchaser or lessee of proceeding,including the right to use,at its option,the name of
the Title or lender on the Title to be released from the obligation the Insured for this purpose.Whenever requested by the
to purchase, lease,or lend if there is a contractual condition Company,the Insured,at the Company's expense,shall give the
requiring the delivery of marketable title. Company all reasonable aid(i) in securing evidence,obtaining
witnesses,prosecuting or defending the action or proceeding,or
effecting settlement, and(ii)in any other lawful act that in the 8. DETERMINATION AND EXTENT OF LIABILITY
opinion of the Company may be necessary or desirable to This policy is a contract of indemnity against actual monetary loss or
establish the Title or any other matter as insured.If the damage sustained or incurred by the Insured Claimant who has
Company Is prejudiced by the failure of the Insured to furnish suffered loss or damage by reason of matters insured against by this
the required cooperation,the Company's obligations to the policy.
Insured under the policy shall terminate,including any liability (a) The extent of liability of the Company for loss or damage under
or obligation to defend,prosecute,or continue any litigation, this policy shall not exceed the lesser of
with regard to the matter or matters requiring such (i) the Amount of Insurance; or
cooperation. (f) the difference between the value of the Ttle as insured and
the value of the Title subject to the risk insured against by
(b) The Company may reasonably require the Insured Claimant to this policy,
submit to examination under oath by any authorized (b) If the Company pursues its rights under Section 5 of these
representative of the Company and to produce for examination, Conditions and is unsuccessful in establishing the Title,as
inspection,and copying,at such reasonable times and places as insured,
may be designated by the authorized representative of the (i) the Amount of Insurance shall be increased by 10%,and
Company,all records,in whatever medium maintained, (ii) the Insured Claimant shall have the right to have the loss or
including books, ledgers, checks,memoranda,correspondence, damage determined either as of the date the claim was made
reports,e-mails,disks,tapes,and videos whether bearing a by the Insured Claimant or as of the date it is settled and
date before or after Date of Policy,that reasonably pertain to paid.
the loss or damage. Further,if requested by any authorized (c) In addition to the extent of liability under(a)and(b),the
representative of the Company,the Insured Claimant shall grant Company will also pay those costs,attorneys'fees,and expenses
its permission, in writing,for any authorized representative of incurred in accordance with Sections 5 and 7 of these Conditions,
the Company to examine,inspect and copy all of these records
in the custody or control of a third party that reasonably pertain 9. LIMITATION OF LIABILITY
to the lass or damage, All information designated as (a) If the Company establishes the Title,or removes the alleged
confidential by the Insured Claimant provided to the Company defect,lien,or encumbrance,or cures the lack of a right of access
pursuant to this Section shall not be disclosed to others unless, to or from the Land,or cures the claim of Unmarketable Title,all
in the reasonable judgment of the Company, it is necessary in as insured,in a reasonably diligent manner by any method,
the administration of the claim. Failure of the Insured Claimant including litigation and the completion of any appeals, it shall
to submit for examination under oath,produce any reasonably have fully performed its obligations with respect to that matter
requested information,or grant permission to secure reasonably and shall not be liable for any loss or damage caused to the
necessary Information from third parties as required in this Insured.
subsection, unless prohibited by law or governmental regulation, (b) In the event of any litigation,including litigation by the Company
shall terminate any liability of the Company under this policy as or with the Company's consent,the Company shall have no
to that claim, liability for loss or damage until there has been a final
determination by a court of competent jurisdiction,and
7. OPTIONS TO PAY OR OTHERWISE SETTLE CLAIMS; disposition of all appeals,adverse to the Title,as insured.
TERMINATION OF LIABILITY (c) The Company shall not be liable for lass or damage to the Insured
In case of a claim under this policy,the Company shall have the for liability voluntarily assumed by the Insured in settling any
following additional options, claim or suit without the prior written consent of the Company.
(a) To Pay or Tender Payment of the Amount of Insurance.
10. REDUCTION OF INSURANCE;REDUCTION OR TERMINATION
To pay or tender payment of the Amount of Insurance under OF LIABILITY
this policy together with any costs,attorneys'fees,and All payments under this policy,except payments made for costs,
expenses incurred by the Insured Claimant that were authorized attorneys'fees,and expenses,shall reduce the Amount of Insurance
by the Company up to the time of payment or tender of by the amount of the payment.
payment and that the Company is obligated to pay.
Upon the exercise by the Company of this option,all liability and 11. LIABILITY NONCUMULATIVE
obligations of the Company to the Insured under this policy, The Amount of Insurance shall be reduced by any amount the
other than to make the payment required in this subsection, Company pays under any policy insuring a Mortgage to which
shall terminate, including any liability or obligation to defend, exception is taken in Schedule e or to which the Insured has agreed,
prosecute, or continue any litigation. assumed,or taken subject,or which is executed by an Insured after
(b) To Pay or Otherwise Settle With Parties Other than the Insured Date of Policy and which is a charge or lien on the Title,and the
or With the Insured Claimant, amount so paid shall be deemed a payment to the Insured under this
(I) To pay or otherwise settle with other parties for or in the policy.
name of an Insured Claimant any claim insured against 12. PAYMENT OF LOSS
under this policy. In addition,the Company will pay any When liability and the extent of loss or damage have been definitely
costs,attorneys'fees,and expenses incurred by the fixed in accordance with these Conditions,the payment shall be made
Insured Claimant that were authorized by the Company up within 30 days.
to the time of payment and that the Company is obligated
to pay; or 13. RIGHTS OF RECOVERY UPON PAYMENT OR SETTLEMENT
(ii) To pay or otherwise settle with the Insured Claimant the (a) Whenever the Company shall have settled and paid a claim under
lass or damage provided for under this policy,together this policy, it shall be subrogated and entitled to the rights of the
with any costs,attorneys'fees,and expenses incurred by Insured Claimant in the Title and all other rights and remedies in
the Insured Claimant that were authorized by the Company respect to the claim that the Insured Claimant has against any
up to the time of payment and that the Company is person or property,to the extent of the amount of any loss,costs,
obligated to pay. attorneys'fees,and expenses paid by the Company. If requested
Upon the exercise by the Company of either of the options provided by the Company,the Insured Claimant shall execute documents
for in subsections(b)(I)or(ii),the Company's obligations to the to evidence the transfer to the Company of these rights and
Insured under this policy for the claimed loss or damage, other than remedies. The Insured Claimant shall permit the Company to
the payments required to be made,shall terminate,including any sue, compromise,or settle in the name of the Insured Claimant
liability or obligation to defend,prosecute,or continue any litigation. and to use the name of the Insured Claimant in any transaction or
litigation involving these rights and remedies.
If a payment on account of a claim does not fully cover the loss of 18. NOTICES,WHERE SENT
the Insured Claimant,the Company shall defer the exercise of its Any notice of claim and any other notice or statement in writing
right to recover until after the Insured Claimant shall have recovered required to be given to the Company under this policy must be given to
its lass. the Company at 400 Second Avenue South,Minneapolis,Minnesota
(b) The Company's right of subrogation includes the rights of the 55401-2499,
Insured to indemnities,guaranties,other policies of insurance,
or bonds,notwithstanding any terms or conditions contained in
those instruments that address subrogation rights.
14. ARBITRATION
Either the Company or the Insured may demand that the claim or
controversy shall be submitted to arbitration pursuant to the Title
Insurance Arbitration Rules of the American Land Title Association
('Rules'). Except as provided in the Rules,there shall be no joinder
or consolidation with claims or controversies of other persons.
Arbitrable matters may include,but are not limited to, any
controversy or claim between the Company and the Insured arising
out of or relating to this policy,any service in connection with its
issuance or the breach of a policy provision,or to any other
controversy or claim arising out of the transaction giving rise to this
policy. All arbitrable matters when the Amount of Insurance is
$2,000,000 or less shall be arbitrated at the option of either the
Company or the Insured. All arbitrable matters when the Amount of
Insurance is in excess of$2,000,000 shall be arbitrated only when
agreed to by both the Company and the Insured. Arbitration
pursuant to this policy and under the Rules shall be binding upon the
parties. ]udgment upon the award rendered by the Arbitrator(s)may
be entered in any court of competent jurisdiction.
15. LIABILITY LIMITED TO THIS POLICY; POLICY ENTIRE
CONTRACT
(a) This policy together with all endorsements, if any,attached to it
by the Company is the entire policy and contract between the
Insured and the Company. In interpreting any provision of this
policy,this policy shall be construed as a whole.
(b) Any claim of loss or damage that arises out of the status of the
Title or by any action asserting such claim shall be restricted to
this policy.
(c) Any amendment of or endorsement to this policy must be in
writing and authenticated by an authorized person,or expressly
incorporated by Schedule A of this policy.
(d) Each endorsement to this policy issued at any time is made a
part of this policy and is subject to all of its terms and
provisions. Except as the endorsement expressly states,it does
not(i)modify any of the terms and provisions of the policy,(it)
modify any prior endorsement,([if)extend the Date of Policy,or
(iv)increase the Amount of Insurance.
16. SEVERABILITY
In the event any provision of this policy, in whole or in part,is held
invalid or unenforceable under applicable law,the policy shall be
deemed not to include that provision or such part held to be invalid,
but all other provisions shall remain in full force and effect.
17. CHOICE OF LAW;FORUM
(a) Choice of Law:The Insured acknowledges the Company has
underwritten the risks covered by this policy and determined the
premium charged therefor in reliance upon the law affecting
Interests in real property and applicable to the interpretation,
rights, remedies,or enforcement of policies of title insurance of
the jurisdiction where the Land is located.
Therefore,the court or an arbitrator shall apply the law of the
jurisdiction where the Land is located to determine the validity
of claims against the Title that are adverse to the Insured and
to interpret and enforce the terms of this policy. In neither case
shall the court or arbitrator apply its conflicts of laws principles
to determine the applicable law.
(b) Choice of Forum: Any litigation or other proceeding brought by
the Insured against the Company must be filed only in a state or
federal court within the United States of America or its
territories having appropriate jurisdiction.