Inst 2017148461 - Laserfiche WebLink

Home

10. Proceeds of Escrow: Removal of Exceptions to Title. Prior to close of escrow, Owner shall cause the removal of all exceptions to title to the Property that were recorded after the date of this Agreement. All amounts required to be deposited into escrow by the City shall be applied first to the payment of any and all liens and encumbrances recorded against the Property in order of lien priority, and thereafter to the payment of escrow fees and closing costs. Any amounts remaining after the amounts deposited into escrow by the City have been so applied, if any, shall be paid to Owner upon the close of escrow. If the amounts deposited into escrow by the City are insufficient to satisfy all liens and encumbrances recorded against the Property, the Owner shall deposit into escrow such additional sums as may be required to remove said liens and encumbrances. In the event that the City agrees to proceed with close of escrow prior to the date that Owner has caused all exceptions to title recorded after the date of this Agreement to be removed, then Owner shall indemnify, defend and hold City harmless from any and all costs expenses or liabilities (including attorneys' fees) incurred or suffered by City that relate to such exceptions and their removal as exceptions to title to the Property. 11. Base Resale Price. Prior to adjustment pursuant to Section 12 the base resale price ("Base Resale Price") of the Property shall be the lowest of: Appraisal Method. City or its designee shall have an appraisal made by a neutral professional appraiser of its choice to establish the market value. The Owner may also have an appraisal made by a neutral professional appraiser of Owner's choice to establish the market value. If agreement cannot be reached, the average of the two appraisals shall be deemed to be the market price. This requirement for an appraisal may be waived by the City if, in the exercise of its judgment, the appraised value will be substantially higher than the price determined in subsection 11(b) below. b. Base Price Method. The purchase price of [Enter Original Purchase Price] paid by Owner plus the amount of any prepayment fees paid by the Owner -Seller at the time said Owner purchased the Premises ("base price"), plus the lesser of either (i) the rate of increase of Area Median Income ("AMI") as published periodically by the United States Department of Housing and Urban Development for Alameda County during the seller's ownership; or (ii) the rate of increase in the housing component of the San Francisco -Oakland metropolitan area Consumer Price Index ("CPI") as published periodically by the United States Department of Labor during seller's ownership. To calculate the base resale prices using AMI and CPI, the base price shall be compounded by the annual rate of increase for the AMI and CPI from the date in which the selling Owner purchased the Premises through the date of receipt by City of the selling Owner's notice of intent to sell. The maximum resale price will be the lowest value between the fair market value using the Appraisal Method above, AMI compounded base price and CPI compounded base price. In no event shall the resale price be lower than the price paid by the selling Owner when he/she/they purchased the Premises. In no event shall City become in anyway liable to Owner, nor become obliged in any manner, by reason of the assignment of its right to purchase, nor shall City be in anyway obligated or liable to Owner for any failure of City's assignee to consummate a purchase of the premises or to comply with the terms of any purchase and sale agreement. 12. Adiustments to Base Resale Price. Subject to the Affordable Housing Cost restriction described in subsection (d) below, the Base Resale Price shall be increased or decreased, as applicable, by the following adjustment factors ("Adjustment"): a. Capital Improvements. An increase for capital improvements made to the Property by Owner, but only if the amount of said improvements had been previously accepted in writing by the City after original written documentation of the cost was provided to the City for verification. The amount of the Adjustment shall equal the original cost of any such capital improvements depreciated on a straight-line basis based upon the estimated useful life of the improvement stated in the City's prior written acceptance of said improvement. b. Damages. A decrease by the amount necessary to repair damages to the Property, if any, and to place the Property into saleable condition as reasonably determined by the City, including, without limitation, amounts attributed to cleaning; painting; replacing worn carpeting and draperies; making necessary structural, mechanical, electrical and plumbing repairs; and repairing or replacing built-in appliances and fixtures. C. Advances by the City. A decrease in an amount equal to the sum of all costs advanced by the City for the payment of mortgages, taxes, assessments, insurance premiums, homeowner's association fees and/or associated late fees, costs, penalties, interest, attorneys' fees, pest inspections, resale inspections, fixing violations of applicable building, plumbing, 783016-1