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HomeMy WebLinkAboutLW17-110 - Supplement - David L. Ball - Ball Property Purchase at 324 1/2 Naden Ave S Closing Documents - 12/01/2016 i ii/%/%i1////i/ �ii/l /i�///� / /,. / /�I / oi�/ �y/�NO, // • ecords Mal �� �c� � ri r L, KEN T / Document VNa5M 1 N GTb M " l CONTRACT COVER SHEET This is to be completed by the Contract Manager prior to submission to the City Clerk's Office. All portions are to be completed. If you have questions, please contact the City Clerk's Office at 253-856-5725.. Vendor Name: David L. Beall Vendor Number: JD Edwards Number Contract Number: N This is assigned by City Clerk's Office Project Name: Closing Documents for Ball Proeprty at 324 1/2 Naden Ave S. Description: ❑ Interlocal Agreement ❑ Change Order ❑ Amendment ❑ Contract Other: Purchase and Sale Agreement Contract Effective Date: 1211/201.6 Termination Gate: N/A Contract Renewal Notice (bays): Number of days required notice for termination or renewal or amendment Contract Manager: T. Brubaker Department: Law Contract Amount: $300,000 Approval Authority; F-1 Director Z Mayor ® City Council 12113117 Meeting Date Detail: (i.e. address, location, parcel number, tax id, etc.): 4001� REQUEST FOR MAYOR'S SIGNATURE KENT Print on Cherry-Colored Paper Routing Information: (ALL REQUESTS MUST FIRST BE ROUTED THROUGH THE LAW DEPARTMENT) Approved by Director�__ Originator: Cheryl Roldk-Wilcox Phone (Originator): x577 1 Date Sent: 2/28/17 Date Required: 2/28/17 Return Signed Document to: Cheryl Rolcik-Wilcox Contract Termination Date: n/a VENDOR NAME: Date Finance Notified, w (Only required on contracts n/a First American Title Insurance for David L. Sall escro d over or on any Grant) DATE OF COUNCIL APPROVAL: 12/13/16 Date Risk Manager Notified:n/a (Required on Non-City Standard Contracts/Agreements) Has this Document been Specificalllg Account Number: n/a Authorized in the Budget? QYES NO Brief Explanation of Document: Closing documents for purchase of property from David L. Ball at 324 1/2 Naden Ave. S. h tUAt7C1nVrz=Wst Be Routed Through The Law Department aw Dep rtm Received: FEB 2 8 2-0. 17 (This area t b completed byj�025t I en Approval of Law De t Law De,<Wch9en[SA- 'W- DEP; Date Forwarded' to Ma or: Shaded Areas To Be Completed By Administration Staff Received: Recommendations and Comments: t vo Disposition: FEB Date Returned: Z.CityOf- eq—tl na ay.r. .9-- V r American Land Title Association ALTA Settlement Statement—Buyer Adopted 05-01-2015 File No.: 2394956A First American Title Insurance Company Printed: 02/27/2017,4:12 PM Officer/Escrow Officer: Stephanie 800 Bellevue Way NE,Suite 300•Bellevue,WA 98004 Cohen/SC Phone:(425)201 4550 Fax:(866)233-5179 i� RrstAmerkan Settlement Location: Estimated Settlement Statement �w 800 Bellevue Way NE,Suite 300,Bellevue, WA 98004 Property Address: 324 1/2 Naden Avenue South,Kent,WA 98032 Buyer: City of Kent,a municipal corporation Seller: David L.Ball Lender: Settlement Date: 02/28/2017 Disbursement Date: Buyer Description Debit Credit Financial Sale Price 300,000.00 Deposit: Receipt No.420396647 on 02/22/2017 by City of Kent,a municipal corporation 10,000.00 Prorations/Adjustments County Taxes 02/28/17 to 07/01/17 @$746.74/yr 251.64 Title Charges&Escrow/Settlement Charges Polity:ALTA Owners-2006 STD $1,160.00 Sales Tax:$111.36 to First American Title Insurance 1,271.36 Company Escrow/Closing Fee $1,400.00 Sales Tax:$133.00 to First American Title Insurance Company Government Recording and Transfer Charges Record Warranty Deed-First to King County Recorder's Office 75.00 Subtotals 301,598.00 10,000.00 Due From Buyer 291,598.00 Totals 301,598.00 301,598.00 Our wire instructions do not change. If you receive an email or other communication that appears to be from us and contains revised wiring instructions,you should consider it suspect and you must call our office at an independently verified phone number. Do not inquire with the sender. Copyright 2015 American Land Title Association. File#2394956A All rights reserved Page 1 of 2 Printed on 0 2/2 7120 1 7 at 4:12 PM Acknowledgement We/I have carefully reviewed the Estimated ALTA Settlement Statement and find it to be a true and accurate statement of all receipts and disbursements to be made on my account or by me in this transaction and further certify that I have received a,copy of the Estimated ALTA Settlement Statement.This Estimated Settlement Statement is subject to changes, corrections or additions at the time of final computation of Escrow Settlement Statement. We/I authorize First American:Title Insurance Company to cause the funds to be disbursed in accordance with the Final ALTA Settlement Statement to be provided to me/us at closing. Buyer(s): City of Kent, a municipal corporation Copyright 2015 American Land Tide Association. File tt 2394956A A8 rights reserved Page 2 of 2 Printed on 02/27/2017 at 4:12 PM << First American Title Insurance Company 800 Bellevue Way NE,Suite 300 First American Bellevue,WA 98004 (425)201-4550 INCOMING DOMESTIC WIRE INSTRUCTIONS Beware of cyber-crime! If you receive an e-mail or any other communication that appears to be generated from a First American Title Insurance Company employee that contains new, revised or altered bank wire instructions, consider it suspect and call our office at a number you trust. Our bank wire instructions seldom change. Funds from other than buyer or seller: Other than funds from a designated lender, real estate agent or broker, or the attorney of record, we will only accept incoming wires that are from the buyer or seller on a transaction. Other third party deposits not accompanied by appropriate instructions will be returned to the remitter. Funds from a U.S. Bank: Funds should be wired from a bank within the United States. Notify our office at(425)201-4550 when you have transmitted your wire. Funds from a non-U.S. Bank: If your funds are being wired from a non-U.S. bank, additional charges may apply. Contact our office for Incoming International Wiring Instructions. ACH Transfers are NOT wire transfers: An ACH transfer is not immediately available funds and requires additional time for clearance. An ACH transfer cannot be accepted for an imminent closing. Acceptance of ACH transfers are subject to state law. Contact our office at(425)201-4550 prior to sending funds by ACH transfer. Contact our office at (425)201-4550 when funds are sent. PAYABLE TO: First American Title Insurance Company BANK: First American Trust, FSB ADDRESS: 5 First American Way, Santa Ana, CA 92707 ACCOUNT NO.: 3008760000 ROUTING NUMBER: 122241255 PLEASE REFERENCE THE FOLLOWING: PROPERTY: 324 1/2 Naden Avenue South, Kent, WA 98032 FILE NUMBER: 2394956A (SC) FIRST AMERICAN TRUST, FSB CONTACT INFO: Banking Services(877)600-9473 WIRES MAY BE RETURNED IF THE FILE NUMBER AND PROPERTY REFERENCE ARE NOT INCLUDED Version 1.0 April 2016 First American Title insurance Company First American 800 Bellevue Way NE,suite 300 Bellevue,WA 98004 Phn- (425)201-4550 (800)926-1110 Fax- (866)233-5179 escrow.belPevue.wa@firstam.com DISCLOSURE TO THE PARTIES UNDER APR 12 Dated: February 27, 20�17 File No.: 2394956A (SC) IN ACCORDANCE WITH THE REQUIREMENTS OF A.P.R. 12 OF THE SUPREME COURT OF THE STATE OF WASHINGTON, FIRST AMERICAN TITLE INSURANCE COMPANY AND THE LIMITED PRACTICE OFFICER SPECIFIED BELOW HAVE THE DUTY TO INFORM YOU OF THE FOLLOWING: 1, The Limited Practice Officer is not acting as the advocate or representative of either of the parties; 2. The Limited Practice Officer will prepare documents which affect the legal rights of both parties; 1 The parties may have differing interest in the documents; ZL The parties have the right to be represented by lawyers of their own selection and each party may have a separate lawyer; S. The Limited Practice Officer cannot give legal advice to the parties concerning the manner in which the documents affect those parties, The Limited Practice Officer is only permitted to select and complete documents which have been approved by the Limited Practice Board in accordance with a written Purchase and Sales Agreement which contains all of the basic terms of the transaction. The Limited Practice Officer is not permitted to negotiate terms which are not included in the written Purchase and Sales Agreement. In this transaction your Limited Practice Officer is: Stephanie Cohen FIRST AMERICAN TITLE INSURANCE COMPANY By: (f5 Stephanie Cohen, LP,O No. WA, 3148 Please acknowledge receipt of the foregoing Notice of Compliance with A.P,R.12 andl that you have read the same by signing your name(s) to the copy of this Notice on the signature line(s) below. I have received and read a copy of the Disclosure, and understand its,contents this day of 20_. City of Kent, a municipal corporation David L, Ball pont American Title insurance Company FirstAmerican` - mmmglevue Way NE,Suitez00 Bellevue,wmsnun rxn (425)201-455 (800)926-1110 Fax (866)233-soo esmm.og/m"o.wm@nmmmzum ATTACHMENT TO DISCLOSURES TO THE PARTIES UNDER APR 12 Date: 02/27/2017 File No.: 7394956A (SC) THE FOLLOWING DOCUMENTS INITIALED HAVE BEEN SELECTED AND PREPARED BY THE LIMITED PRACTICE OFFICER. ��� EXCISE TAX AFFIDAVIT SUPPLEMENTAL EXCISE TAX AFFIDAVIT LPB 1O STATUTORY WARRANTY DEED LPB 11 WARRANTY FULFILLMENT DEED ��� LPB 12 QUIT CLAIM DEED LPB 13 DEED & SELLER'S ASSIGNMENT OF REAL ESTATE CONTRACT LPB 14 DEED & PURCHASER'S ASSIGNMENT OFCONTRACT LPB 15 BARGAIN AND SALE DEED LPB 16-O9 SPECIAL WARRANTY DEED LPB 20 DEED OF TRUST(SHORT FORM) LPB 21 ASSIGNMENT OF DEED OFTRUST LPB 22 DEED OF TRUST(LONG FORM) LPB 22A DEED DF TRUST WITH DUE ON SALE AND DUE DATE LPB 23 REQUEST FOR FULL RECONVEY4N[E LPB 24 REQUEST FOR PARTIAL RECONVEYANCE LPB 28A PROMISSORY NOTE LPB Z9 REQUEST FOR NOTICE LPB 30 BILL OF SALE LPB35 SUBORDINATION AGREEMENT LPB 44 REAL ESTATE CONTRACT(RESIDENTIAL SHORT FORM) LPB 45 REAL ESTATE CONTRACT(LONG FORM) LPB 5O MORTGAGE (STATUTORY FORM) LPB 51 SATISFACTION [)FMORTGAGE LPB S2 PARTIAL RELEASE OFMORTGAGE LPB 6O RELEASE 8FLIEN LPB 61 PARTIAL RELEASE {}FLIEN LPB 62 SATISFACTION OF JUDGMENT INITIALS: First American ritle Insurance Company First m rican 800 Bellevue Way NE,Suite 300 Bellevue,WA 98004 Phn- (425)201-4550 (800)926-1110 Fax- (866)233-5179 escrow.bellevue.wa@firstam.com ATTACHMENT TO DISCLOSURES TO THE PARTIES UNDER APR 12 continued Date: February 27, 2017 File No.: 2394956A (SC LPB 63 PARTIAL RELEASE OF JUDGMENT LPB 64 WAIVER OF LIEN LPB 65 PARTIAL WAIVER OF LIEN LPB 70 SPECIAL POWER OF ATTORNEY (SALE) LPB 71 SPECIAL POWER OF ATTORNEY (PURCHASE/ENCUMBER) LPB 72S CONSUMER USE TAX RETURN (DEPARTMENT OF REVENUE) LPB 72 USE TAX RETURN LPB 73 PERSON PROPERTY SECURITY AGREEMENT LPB 74 PERSONAL REPRESENTATIVE DEED AUDITOR'S COVER SHEET UCC UCC UCC DEPARTMENT OF LICENSING FORMS LENDER LOAN DOCUMENTS THAT ARE APPROVED AND DESIGNED FOR USE BY THE SECONDARY MORTGAGE MARKET INCLUDING NOTES, DEEDS OF TRUST AND RIDERS, ASSIGNMENT OF MORTGAGE, ASSIGNMENT OF REVERSE ACCOUNT FUNDS, DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT DOCUMENTS, THE LIMITED PRACTICE OFFICER DID NOT PREPARE TRUTH-IN- LENDING DISCLOSURE. FMHA LOAN DOCUMENTS INITIALS: + "`•+ First American Title Insurance Company * First American 800 Bellevue Way NE,Suite 300 Bellevue,WA 98004 Phn- (425)201-4550 (800)926-1110 Fax- (866)233-5179 escrow.bellevue.wa@firstam.com ESCROW INSTRUCTIONS IMPROVED PROPERTY Buyer: City of Kent, a municipal corporation Seller David L. Ball Title Commitment: Title commitment number 2394956A dated Escrowee: First American Title Insurance Company Escrow Officer: Stephanie Cohen Property: The real property described in the Title Commitment Property Address: 324 1/2 Naden Avenue South, Kent, WA 98032 Please read this document carefully. It requires the use of individual arbitration to resolve disputes instead of jury trials or class actions. A. Instruction To Close Escrowee has been provided a copy of the Purchase and Sale Agreement dated December 01, 2106 and/or other documents, agreements and addenda which constitute Seller's agreement to sell the Property to Buyer (collectively, the "Purchase Agreement"). Buyer and Seller instruct Escrowee to act as an independent third party to close the purchase and sale of the Property (the "Transaction") in accordance with the Purchase Agreement and these instructions. In the event there is a variance between: (1) the terms of the Purchase Agreement; and (2) the final terms of the Transaction as evidenced by the documents delivered under these or other instructions, and the closing statements agreed to by the parties, then Escrowee shall close the Transaction in accordance with the items described in (2) above. Buyer and Seller acknowledge and agree that: (a) all terms and conditions of the Purchase Agreement have been met, waived, or satisfied, or will be resolved outside of escrow and they are no longer to be considered as conditions to this closing; (b) Escrowee shall not be responsible for such terms and conditions; (c)Seller's Disclosure Statement required under Title 64 of the Revised Code of Washington URCW")will be delivered or waived outside of escrow and is not to be considered a condition of closing;andtd) Escrowee will not read nor have any responsibility or liability whatsoever for the matters contained in Seller's Disclosure Statement. S. Title Commitment Buyer and Seller acknowledge they have received a copy of the Title Commitment and have examined the legal description contained therein and acknowledge it is a full and correct description of the real property that is the subject of this Transaction. C. Escro wee'F Preparation of Documents In performing its duties under these instructions, Escrowee may select, prepare and complete certain documents including, but not limited to, deeds and deeds of trust. Escrowee advises Buyer and Seller to consult their own attorney prior to signing these documents. Page 1 of 7 First American Title Insurance Company File No.: 2394956A(SC) Date: February 27, 2017 Buyer and Seller acknowledge that: 1) These documents may substantially affect their legal rights; 2) Escrowee is not licensed to practice law; 3) Neither Escrowee nor its employees are permitted to offer legal advice of any nature, nor have they done so; 4) Neither Escrowee nor its employees are permitted to offer advice as to the merits of a transaction or the manner in which title is held, nor have they done so. D. Delivery of Documents and Funds bySe/%r Seller has or will deposit with Escrowee the documents identified below relating to the Property. Any deed(s)will list the grantee(s) as City of Kent, a Washington municipal corporation. Escrowee shall record, file, release and/or deliver such documents when Escrowee has deposited all necessary funds and all other pre-requisites to closing have been satisfied. [ ] Warranty Deed [ x ] Excise Tax Affidavit [ ] Bill of Sale [ ] Real Estate Contract(to be jointly executed by Buyer) [ ] Deed in fulfillment of said Contract(To be returned to seller's possession on dosing) [ x] Additional Documents: Quit Claim Deed If necessary, Seller has or shall deliver to Escrowee such funds as are required to close the Transaction. Escrowee is instructed to provide a certification that Seller is not a "foreign person" within the meaning of the Foreign Investment in Real Property Tax Act("FIRPTA"). Seller shall sign this certification. If Seller is a foreign person, and this transaction is not otherwise exempt from FIRPTA, Escrowee is instructed to withhold and pay the required amount to the Internal Revenue Service. E. Payment of Encumbrances and Seller Charges Seller authorizes Escrowee to pay all encumbrances (except those to be excepted from coverage in the title insurance policy) and all other disbursements and charges shown on the estimated closing statement which Seller signs contemporaneously with these instructions. If there are underlying encumbrances being paid off which require the obtaining of a Fulfillment Deed, Reconveyance, Release or Satisfaction (collectively, a "Release Document"), Escrowee shall pay the demand of the appropriate party and obtain and record such Release Document. Seller approves payment of the amount of the demand, including interest and/or penalties and late charges, as shown on the closing statement, even if Escrowee has not been able to obtain written verification of the amount claimed as due. In the event the final written demand is higher than that shown on the closing statement, Escrowee shall have the option to either(a) deduct the shortfall from any of Seller funds held by Escrowee; or(b) demand that Seller immediately pay the shortfall into this escrow, which Seller agrees to do. Seller acknowledges that: (1) the payoff figures on existing encumbrances may accrue daily interest; (2) existing encumbrances are not considered paid in full until sufficient payoff funds are received by the party entitled thereto; Page 2 of 7 First American Title Insurance Company File No.: 2394956A(SC) Date: February 27, 2017 (3) Escrowee's payment of the encumbrance will include interest through the date of anticipated receipt of funds by the party entitled thereto, plus such extra interest as Escrowee deems appropriate to ensure sufficient funds are delivered. Escrowee shall instruct the party being paid to promptly remit any excess funds directly to Seller; and (4) Escrowee may transmit documents, payoffs, checks, letters and communications by regular service through the U.S. Mail, private carrier, personal delivery, telephone, or wire or wireless electronic transmission or transfer. If items are deposited in the U.S. Mail system a minimum of five(5) working days before any deadline, Escrowee shall be relieved and discharged of any and all liability, and the obligated principal shall indemnify Escrowee against any and all claims resulting therefrom, and if additional funds are needed to satisfy these claims, the obligated principal shall deposit same promptly. F. Delivery of Documents and Funds by Buver Buyer has deposited with Escrowee the sum of$10,000.00, in U.S. funds as earnest money. Buyer(and/or Buyer's lender) have or shall deliver to Escrowee such additional funds as are required to close the Transaction. Buyer has or will deliver to Escrowee such documents as may be required of them to close the Transaction. Escrowee shall disburse the funds when Escrowee: (a) has recorded the necessary conveying document and/or such other documents as are required by the Transaction; and (b)can cause to be issued a policy of tide insurance as called for in the Purchase Agreement, and as may be required by the lender, insuring title in (if by deed)or an interest in (if by contract), the named Buyer, free from encumbrance other than matters attaching by,through or under the Buyer, and the following paragraph(s)as set forth in the Title Commitment,which paragraph(s) is/are numbered as in the Title Commitment: 3,5 of preliminary commitment. The title insurance policy shall contain those insuring clauses, exceptions, exclusions, provisions and stipulations customarily contained in the printed provisions of such policy or policies. G. Payment of Buyer Charges Buyer authorizes Escrowee to pay those charges and adjustments as itemized on the Closing Statement, which Buyer signs contemporaneously with these instructions. H. Changes to Closing Statement Closing statements and closing disclosures are subject to final adjustment and audit, and may be amended to reflect actual charges and adjustments at the time of closing. If any monetary error is discovered on a closing statement or closing disclosure the party liable therefore will promptly pay into escrow for disbursement such amounts as may be necessary. L Pro-Rations Pro-rations will be based on a 365-day year and will be calculated based on the date Transaction documents are recorded. Taxes on real property will be pro-rated based on the latest available tax figures. Buyer and Seller acknowledge that taxes may currently be assessed on land value only and that taxes for the current and prior years may be later revised to include taxes on improvements constructed on the Property prior to closing. If, after closing, such additional taxes are assessed, Buyer and Seller will promptly pay to the appropriate taxing authority their respective share of said taxes pro-rated as of the date of closing. J. Payment of Escrow Fee Buyer shall pay one-half of Escrowee's escrow fee unless either: (a)this Transaction is financed by the Federal Housing Administration ("FHA") or the Department of Veterans Affairs("VA"); or(b)the terms of the Purchase Agreement instruct otherwise. If the conditions described in either(a) or(b)above are present, Escrowee's fee Page 3 of 7 First American Title Insurance Company File No.: 2394956A (SC) Date: February 27, 2017 shall be paid according to FHA or VA regulations or the Purchase Agreement. Each party may pay one-half of the scheduled escrow fee, but shall be entitled to any applicable filed discount offered by Escrowee or the title insurer insuring the Transaction,which may result in one party paying a lower escrow fee than the other. In the event the Seller's closing instruction places a limitation on the Seller's payment of escrow or title fees, Buyer will be responsible for the balance of the escrow and/or title fees as necessary to comply with state filed fees if applicable. GENERAL PROVISIONS 1. The value of fuel oil remaining on the Property is to be pro-rated and paid for outside of escrow between the Buyer and Seller. Buyer and Seller acknowledge that Seller is responsible for the liens set forth in R.C.W 35.21.290; 35.67.200; 36.36.045; 36.89.065; 36.94.150; 57.08.081 or 87.03.445. In accordance with R.C.W. 60.80, Seller may request that Escrowee administer disbursement of closing funds necessary to satisfy the unpaid charges set forth above. Escrowee is not liable if the Escrowee's refusal to comply is based on the Seller's inaccurate or incomplete identification of utilities providing service to the Property or if a utility company fails to provide an estimated or actual final billing, or written extension of the per diem rate or if disbursement of closing funds necessary to satisfy unpaid charge would violate R.C.W. 18.44.070. A fee may be charged for performing the services described in this paragraph. 2. Escrowee shall have no responsibility or liability regarding possession of the Property, the condition of the Property, or the suitability of the Property for its intended use. 3. Seller warrants that all homeowners association dues and/or assessments are paid to date and no delinquencies exist. Buyer assumes responsibility for all subsequent dues and/or assessments. 4. Escrowee is authorized to: (a) fill in the date of close of escrow and such other necessary dates on any documents which require same; and (b) correct any typing or scriveners errors on any documents delivered into escrow. Date of closing means the date on which instruments are recorded. Escrowee is authorized to record any instrument delivered into this escrow, if recording is necessary or proper for the issuance of policies of title insurance. 5. All disbursements shall be in U.S. funds and shall be by Escrowee's check, or by wire transfer. Escrow funds will be placed in an escrow account which will pay no interest to the depositor unless specifically requested and all other preconditions to earning interest are satisfied. All funds delivered into escrow are subject to immediate deposit, and all checks must clear and be credited to Escrowee's trust account as good and sufficient U.S. funds before closing can be completed. Any delay in clearing deposits will delay closing. 6. Coverage of the Property with fire or any other type of hazard insurance is the sole responsibility of the Buyer and Escrowee is relieved of any responsibility or obligation in connection therewith. HOWEVER, when a fire/hazard binder or policy is required as a condition of closing, it shall be submitted to Escrowee and paid for, as required. 7. In the event this escrow fails to close, a sum sufficient to pay title commitment and escrow cancellation charges shall be paid, and as appropriate, may be deducted from funds held. 8. Compliance with ordinances, including but not limited to city or county short plat (subdivision)ordinances are the responsibility of Buyer and Seller and Escrowee shall have no responsibility therefore. Any and all charges for building permits or assessed charges in connection therewith will be handled outside of escrow. 9. Upon their request, Escrowee may furnish a copy of these instructions, closing statements and/or any other documents deposited in this escrow to the lender or lenders, the real estate broker or brokers and/or the attorney or attorneys involved in this Transaction. Page 4 of 7 First American Title Insurance Company File No.: 2394956A (SC) Date: February 27, 2017 10. Dispute Resolution: Please read this arbitration provision carefully. It requires the resolution of disputes by arbitration on an individual basis rather than by jury trials or class actions. (a) The parties acknowledge that they are entering into this arbitration agreement in connection with escrow services related to a real estate transaction. The parties agree that all disputes and claims involving Escrowee that arise out of or relate to the escrow services or related real estate transaction in any way must be resolved by arbitration. This arbitration agreement is intended to be broadly interpreted, and the obligation to arbitrate includes disputes or claims brought by or against the parties' respective affiliates, owners,agents, employees, representatives, predecessors, successors, assigns, and any beneficiaries of the escrow services, such as those with an interest in the underlying real estate transaction or who are or intend to be occupants, tenants, or owners of the property. Notwithstanding the foregoing, any party may bring an individual action in small claims court. Any dispute as to the arbitrability of claims or the scope or enforceability of this arbitration provision, or as to the interpretation of paragraph (d) below, is for the court to decide. The services provided by Escrowee evidence a transaction in interstate commerce, and thus the Federal Arbitration Act governs the interpretation and enforcement of this provision. This arbitration provision shall survive termination of the Escrow. (b) Arbitration Procedures. The arbitrator shall be bound by the terms of this arbitration provision. The arbitration will be governed by the Commercial Arbitration Rules or, where applicable, the Consumer Arbitration Rules (collectively, "AAA Rules") of the American Arbitration Association ("AAA"), as modified by this arbitration provision. The AAA Rules are available online at www.adr.org or by calling the AAA at 1-800-778-7879. The AAA shall administer the arbitration. If the AAA is unavailable, the arbitration will be administered by another arbitration provider that the parties agree to or that the court selects. Arbitrators may consider but shall not be bound by rulings in prior arbitrations involving different customers. Arbitrators shall be bound by rulings in prior arbitrations involving the same customer to the extent required by applicable law. Unless the parties agree otherwise, any in-person arbitration hearings shall be in the county in which the underlying real estate at issue in the transaction is located. (c) Arbitration Costs. The Escrowee will pay all AAA filing, administrative, and arbitrator fees for any arbitration that the Escrowee commences. If another party commences arbitration and the value of that claim is $75,000 or less(to either party), the Escrowee will pay all AAA fees. If, however, the arbitrator finds that the substance of such a claim or the relief sought is frivolous or brought for an improper purpose (as measured by the standards in Federal Rule of Civil Procedure 11(b)), then the payment of all AAA fees shall be governed by the AAA Rules. (d) Prohibition of Class or Representative Actions and Non-Individualized Relief. UNDER THIS AGREEMENT,ANY CLAIM MUST BE BROUGHT ONLY IN AN INDIVIDUAL CAPACITY. NO PARTY MAY SERVE AS A PLAINTIFF, CLASS MEMBER,OR PARTICIPANT IN ANY PURPORTED CLASS, REPRESENTATIVE,OR PRIVATE ATTORNEY GENERAL PROCEEDING. Further, unless all parties agree otherwise, the arbitrator may not consolidate more than one person's claims, and may not otherwise preside over any form of a class, representative, or private attorney general proceeding. The arbitrator may award any relief that a court could award, so long as the relief is individualized to the claimant and would not affect other persons. No party may seek non-individualized relief that would affect persons other than the parties themselves. If a court decides that applicable law precludes enforcement of any of this paragraph's limitations as to a particular claim for relief, then that claim (and only that claim) must be severed from the arbitration and may be brought in court. Page 5 of 7 First American Title Insurance Company File No.: 2394956A(SC) Date: February 27, 2017 11. Except as provided in the preceding section, should any dispute arise between the parties,or any of them, and/or any other party, concerning the Property or funds involved in the Transaction, or in the event conflicting demands or claims are made with respect to this escrow or the rights of any of the parties hereto, it is expressly agreed that the Escrowee may, in its sole discretion and at its election, do any or all of the following: (a) withhold and stop all further proceedings in performance of this escrow; (b) hold all documents and funds in their existing status pending resolution of the dispute; (c) issue a check to either Seller or Buyer, made payable jointly to Seller and Buyer, in the amount of the sums in dispute; or(d) where the substance of the underlying dispute involves competing claims to the funds held in escrow,join or commence a court action in interpleader, deposit the money and documents held by it with the court, and ask the court to determine the respective rights of the parties. Upon depositing said funds and documents with the court, Escrowee shall be immediately fully released and discharged and shall have no further duties or responsibilities under these instructions or this escrow. The parties jointly and severally agree to pay Escrowee's costs, expenses and reasonable attorney's fees incurred in any interpleader lawsuit arising out of or in connection with the Transaction or these instructions, whether such lawsuit is instituted by Escrowee, the parties, or any other person. 12. Any additional instructions given to Escrowee shall be presented in writing. Buyer and Seller acknowledge that Escrowee may receive instructions from third parties(e.g., lenders, grantors, vendors, etc.)which are necessary for the completion of this escrow and are, therefore, made a part hereof. 13. These escrow instructions, and amendments hereto, may be executed in one or more counterparts, each of which independently shall have the same effect as if it were the original, and all of which taken together shall constitute one and the same instruction. 14. Title to equipment, fixtures, personal property or encumbrances or liens thereon or personal property tax or sales tax associated therewith are not a part of this escrow and will be handled outside of escrow. 15. Buyer and Seller have been afforded adequate time and opportunity to read, understand and approve these instructions and all documents referred to herein. 16. Escrowee may destroy these instructions and all records of this escrow, regardless of date of same, at any time after seven (7)years from the date of these instructions without liability and without need of further notice to or from Buyer and Seller. 17. Internal Revenue Code Section 6109(h) imposes requirements for furnishing, disclosing, and including taxpayer identification number in tax returns on the parties to a residential real estate transaction involving seller- provided financing. Buyer and Seller understand that the disclosure reporting requirements are exclusive obligations between the parties to this transaction and Escrowee is not obligated to transmit the taxpayer identification numbers to the Internal Revenue Service or to the parties. Escrowee is not rendering an opinion concerning the effect of this law on the Transaction, and the parties are not acting on any statements made or omitted by Escrowee or any of its employees or agents. To facilitate compliance with this law, Buyer and Seller authorize Escrowee to release any parry's taxpayer identification number to any requesting party who is a party to this Transaction. The requesting party shall deliver a written request to Escrowee. Buyer and Seller waive all rights of confidentiality regarding their respective taxpayer identification numbers and agree to hold Escrowee harmless against any fees, costs, or judgments incurred and/or awarded in connection with the release of taxpayer identification numbers. Page 6 of 7 First American Title Insurance Company File No.: 2394956A (SC) Date: February2l 2017 18. if any documents have been deposited with Escrowee which Escr�wee is being instructed to record but not insure, the parties depositing the documents acknoWedge and agree that Escrowee is recor6ng these documents as an accommodation and as courier only, out nfphysical convenience, and that no tide insurance wffl be issued or escrow services rendered in connection therewith. By accepting and recording these documents Escrowee establishes no contractual or fiduciary responsibility with orboany parties and makes no representations or guarantees as to the content, authenticity, validity, recmndab||i1yoreffectiveness of the documents. Further, Escrowee makes MV representations or guarantees as to, the time, date or place of the recording, and the depositing parties shaH be responsible for all recording costs, taxes and fees ne�ated to said documents. The depositing parties hereby indemnify Escrowee for any liability it may have, or be alleged to have, reiatecl to said documents, which indemnity includes,a duty of defense and payment for any costs and attorney's fees incurred in defending or preparing to defend any claim or allegation ofHabi|ityagainst Escrowee. 19. Buyer and Seller acknowledge that this transaction may be subject to various state and federal laws and regu|atimnsdeahng with }endmg practices, including, but not limited to, laws and regulations requiring lenders to obtain proper 8icensing. Escrowee advises the parties to seek competent legal counsel to ensure compliance with these laws and regulations. The parties represent, warrant and agree that: (a) they have complied with all such laws and negu|abons; (b) Escrowee shall have no nespVnsibW|Ly or Uab|||Ly regarding their compliance therewith; and (c) they shaM indemnify and hold Escrowee harmless from and a0a�nst any and all c8aims, demands, damages, losses or cost (�nc|uding attorneys" fees and costs of defense) incurred by Escrowee relating to such laws and neguVabuns. ADDITIONAL INSTRUCTIONS: Subject to the provisions of Paragraph Nos. 10 and 11 of the above GENERAL PROVISIONS, these instructions shall expire and become invalid upon the earlier to occur of(8) thirty (30) days from the date of the last signature of Buyer and Seller below; or (b) the receipt by Escrowee from Buyer and/or Seller ofa written revocation ofthese instructions Dated the day mf 30_ SELLER: [}avidL Ball Maa|ngAddress� 324 1/2N'adenAvenue South, Kent, WA 98032 Dated the day of , 20___ BUYER: City of Kent, nnun|0rpG| corporation ~ ( / Mailing Address: 220 Fourth Ave. S, Kent, WA 98032 Page/m7 FirstAmerican Title Insurance Company First American 800 Bellevue Way NE,Suite 300 BeNevue,WA 98004 Phn- (425)201-4550 (800)926-1110 Fax- (866)233-5179 escrow.bdievue.wa@firstam.com SUPPLEMENTAL ESCROW INSTRUCTIONS UTILITY PAYMENT To: First American Title Insurance Company Date: February 27, 2017 File No: 2394956A(SC) Re: 324 1/2 Naden Avenue South, (Cent, WA 98032 Buyer(s) and Seller(s) herein acknowledge that the Escrow Agent WILL NOT be paying any closing bills for utility accounts. All utilities are to be paid current by the Seller prior to the close of escrow. The buyer and/or their agents are urged to verify all bills are paid current prior to closing so that all utilities may be transferred and/or turned on when the transaction closes. The parties hereby indemnify, defend and hold First American Title harmless from any loss, claim or damage for collection or payment of the same. ALL OTHER TERMS AND CONDITIONS OF THIS ESCROW WILL REMAIN THE SAME. BUYE,R(S): City of Kent, a municipal corporation SELLER(S): David L. Ball Page 1 of 1 FirstAlmerican TiVe Insurance Company erIcan 800 Bellevue Way NE,Sulte 300 FirstAm Bellevue,WA 98004 Phn- (425)201-4550 (800)926-1110 Fax- (866)233-5179 escrow.bellevue.wa@firstam.com To: First American Title Insurance Company Date: February 27, 2017 Escrow Officer: Stephanie Cohen He No.: 2394956A(SC') Re: 324 1/2 Naden Avenue South, Kent, WA 98032 DISCLOSURE ON TITLE REPORT The undersigned parties have received a copy of the preliminary title report for the above referenced transaction, and understand its terms and conditions: 3,5 of preliminary commitment Dated the day of 20_ City of Kent, a municipal corporation David L Bal!l Page 1 of I AFTER RECORDING MAIL TO: City of Kent 220 Fourth Ave. S Kent, WA 98032 Filed for Record at Request of: Space above this line for Rworders use only First American Title Insurance Company QUIT CLAIM DEED File No: 2394956A(SC) Date: February 27, 2017 Grantor(s): David L. Ball Grantee(s): City of Kent Abbreviated Legal: PTN GL 7 SEC 24 TWP 22N RGE 4E, IN KING COUNTY Additional Legal on page: Assessor's Tax Parcel No(s): 600000-0062-02 THE GRANTOR(S) David L. Ball, an unmarried person for and in consideration of $10.00 and other good and valuable consideration in hand paid, conveys and quit claims to City of Kent, a Washington municipal corporation, the following described real estate, situated in the County of King, State of Washington, together with all after acquired title of the grantor(s) herein: LEGAL DESCRIPTION: Real property in the County of King, State of Washington, described as follows: THE EAST 125 FEET OF THE FOLLOWING DESCRIBED TRACT, MEASURED PARALLEL TO THE EAST LINE THEREOF; THAT PORTION OF GOVERNMENT LOT 7, SECTION 24,TOWNSHIP 22 NORTH, RANGE 4 EAST,W.M., IN KING COUNTY,WASHINGTON, DESCRIBED AS FOLLOWS: BEGINNING AT A POINT ON THE WEST MARGINAL LINE OF THE RIGHT OF WAY OF THE SEATTLE TACOMA INTERURBAN RAILWAY WHICH IS 858.00 FEET SOUTH OF THE SOUTH MARGINAL LINE OF MEEKER STREET IN THE CITY OF KENT; THENCE WEST 354.41 FEET TO NADEN AVENUE; THENCE SOUTH ALONG NADEN AVENUE,A DISTANCE OF 66 FEET; THENCE EAST TO THE WEST MARGINAL LINE OF RIGHT OF WAY OF SAID RAILWAY; THENCE NORTHERLY ALONG SAID RIGHT OF WAY A DISTANCE OF 66.45 FEET, MORE OR LESS,TO POINT OF BEGINNING; EXCEPT PORTION TAKEN FOR STATE HIGHWAY BY KING COUNTY SUPERIOR COURT CAUSE NO. 656683; Page 1 of 2 LPB 12-05 APN:600000-0062-02 Quitclaim Deed-continued File No.: 2394956A(SC) Date:02/27/2017 (ALSO KNOWN AS THE EAST 125 FEET OF LOT 6, NADEN E.H. GARDEN TRACTS, UNRECORDED). David L. Ball STATE OF Washington ) )-ss. COUNTY OF King ) I certify that I know or have satisfactory evidence that David L. Ball, is/are the person(s) who appeared before me, and said person(s) acknowledged that he/she/they signed this instrument and acknowledged it to be his/her/their free and voluntary act for the uses and purposes mentioned in this instrument. Dated: Notary Public in and for the State of Washington Residing at: My appointment expires: Page 2 of 2 LPB 12-05 ,� •"'•. First American ride Insurance Company First American 800 Bellevue Way NE,Suite 300 Bellevue,WA 98004 Phn-(425)201-4550(800)926-1110 Fax-(866)233-5179 File No. 2394956A Buyer: City of Kent,a municipal corporation Buyer Address: 220 Fourth Ave. S,Kent, WA 98032 SETTLEMENT AGENT'S STATEMENT OF RECEIPT OF SELLER'S CERTIFICATE OF NON-FOREIGN STATUS Property Address: 324 1/2 Naden Avenue South, Kent, WA 98032 Settlement/Escrow No. 2394956A I, Stephanie Cohen, hereby certify to City of Kent, a municipal corporation (buyer)that: a. I am the settlement/escrow officer in the above referenced transaction ("Transaction"); b. I am an employee of First American Title Insurance Company which is a "qualified substitute" under Internal Revenue Code (IRC) Section 1445(f)(6); and C. Pursuant to IRC Section 1445(b)(9)that each of the following seller or sellers, who are all of the sellers in the Transaction, has provided to me a completed copy of the Seller's Certificate of Non- Foreign Status pursuant to IRC Section 1445(b)(2): David L. Ball (Sellers) Executed under penalty of perjury at Bellevue, WA on this Twenty-seventh day of February, 2017. (Settlement/Escrow Officer's Signature) Note: Section 1445 of the Internal Revenue Code (IRC) provides that a transferee (buyer) of a U.S. real property interest must withhold tax if the transferor(seller) is a foreign person. Pursuant to IRC Section 1445(b)(2) no withholding is required if the transferor(seller)furnishes to the transferee (buyer)a non-foreign affidavit stating, under penalty of perjury,the transferor's United States taxpayer identification number and that the transferor is not a foreign person. Section 1445(b)(9)was added to the Internal Revenue Code (IRC)on July 30, 2008 in order to provide an alternative procedure for furnishing Non-Foreign Affidavits. The alternative procedure allows a seller to furnish the Non-Foreign Affidavit to a "qualified substitute" instead of the buyer so long as the qualified substitute furnishes a statement to the buyer stating, under penalty of perjury, that the qualified substitute is in possession of the Non-Foreign Affidavit. A qualified substitute is defined as the person (including any attorney or title company) responsible for closing the transaction, other than the seller's agent, and the buyer's agent. (See IRC§ 1445(f)(6)). U.S.FIRPTA-Settlement Agent's Statement to Buyer_Rev.(8/25/08) Page 1 of 1 Pages