Inst 2007094801 - Laserfiche WebLink

Home

estate or interest therein, by Owner. The Option shall have priority over any subsequent sale, conveyance, transfer, lease, or other disposition or encumbrance of the Property, or of any estate or interest therein, and in the event of exercise of the Option by City, the City shall take the Property subject only to senior liens and encumbrances, Except as otherwise provided in Section 14(a), the exercise of the Option by the City at any time and from time to time shall not extinguish the Option or cause a merger of the Option into any estate or other interest in the Property, and the Option shall continue to exist and be effective with respect to the Property against any and all subsequent owners in accordance with the terms and conditions hereof. b. Request for Notice of Default. The City shall file a Request for Notice of Default for recordation in the Office of the Recorder of the County of Alameda promptly upon execution of this Agreement. 14. Survival of Option Upon Transfer. a. In General. The City's right to exercise the Option shall survive any transfer of the Property by Owner. The Option may be exercised against the Property whether owned, possessed or occupied by (i) an eligible moderate income purchaser, (ii) any successor, transferee, assignee, heir, executor, or administrator of an eligible moderate income purchaser, including a debtor-in-possession, debtor or trustee pursuant to Title 11 of the United States Code, or (iii) any person owning, possessing or occupying the Property who does not meet the eligibility criteria established by the City under the Program (collectively all referred to and defined herein as "Owner"). Notwithstanding the foregoing, the Option shall , not survive (1) the sale and transfer of the Property to a third party purchaser pursuant to a judicial or non- judicial foreclosure or a deed-in-Iieu of foreclosure under a power of sale contained in a mortgage or deed of trust recorded against the Property in the Office of the Recorder of the County of Alameda on or prior to the date of this Agreement. provided that the City has received timely notice of such Option event and has failed to either reinstate said mortgage or deed of trust or exercise its Option, or (2) the recording of an instrument conveying Owner's interest in the Property to the City, or its assignee, provided the conveyance is in accordance with the terms of this Agreement. b. HUD Insured Mortqage. If Owner has acquired the Property by a mortgage insured by the Secretary of the United States Department of Housing and Urban Development, and a notice of default has been recorded pursuant to California Civil Code Section 2924 (or successor provisions), then this Option shall automatically terminate if title to the Property is transferred by foreclosure or deed-in-Iieu of foreclosure, or if the insured mortgage is assigned to the Secretary. 15. Voidable Transfers. As long as the Option has not been abandoned pursuant to Section 6(e), any actual or attempted sale, conveyance, transfer or other disposition of the Property, or of any estate or interest therein, in violation of the terms and conditions of this Agreement, shall be voidable at the election of the City. 16. Permitted Transfers. The following transfers ("Permitted Transfers") of title to the Property, or of any estate or interest therein, shall not be subject to the City's prior approval, shall not trigger the exercise of the Option, and shall not be considered Option Events: (a) taking of title by a surviving joint tenant; and (b) any good faith transfer to an Eligible Household. The following inheritances are not unconditionally permitted, but do allow a compassion period: (c) inheritance of the unit by a Non~ Eligible child or step child (at which time the City will allow a one-year compassion period between the time the estate is settled and the time when the property must be sold to an Eligible Household); and inheritance