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HomeMy WebLinkAboutUnrestricted Sale Certification UNRESTRICTED SALE CERTIFICATION This Unrestricted Sale Certification ("Certification") is made and delivered by Kevin Dale Reimer and Kathy Lynn Reimer (collectively referred to herein as "Owner") and Watt Ryan ("Market Purchaser") in favor of the City of Arroyo Grande ("City") on this 'day of , 2013. A. WPfEREAS, on or about December 30, 2006, City and Owner entered into a Buyer's Occupancy and Resale Agreement with Option to Purchase recorded in the official records of the County of San Luis Obispo on January 5, 2007 as Document No. 2007000859 ("Agreement"); and B. WHEREAS, City required owner to execute the Agreement as a condition on Owner's purchase of the affordable housing unit commonly known as 475 Bakeman Lane, Arroyo Grande, California, 93420 ("Property"), which Property is more particularly described in Exhibit "A" attached hereto and incorporated herein by this reference; and C. WHEREAS, the Agreement contains various provisions relating to Owner's occupancy and resale of the Property in accordance with the City's Affordable Housing Ordinance and prohibits Owner from selling the property to an individual who is a Market Purchaser at an Unrestricted Price ("Unrestricted Sale"), as those terms are defined in the Agreement, except under certain limited circumstances; and D. WHEREAS, Section 13 of the Agreement requires Owner to provide City with certain documents prior to completing an Unrestricted Sale, including, without limitation, a written certification from Owner and Market Purchaser in a form acceptable to City that, among other things, certifies that the sale shall be closed in accordance with the terms of the Agreement and the sales contract submitted to the City; and E. WHEREAS, Owner and Market Purchaser have submitted with the City: (1) an appraisal of the Property dated May 22, 2013 which states, as of May 14, 2013 the fair market value of the Property is $370,000; and (2) a final sales contract and other related documents which state that the sales price of the Property is $380,000; and F. WHEREAS, this Certification is intended to satisfy the written certification requirement set forth in Subsection 13(3) of the Agreement. For good and valuable consideration, the sufficiency of which is hereby acknowledged, Owner and Market Purchaser hereby certify and promise as follows: 1 1. Sale Closed in Accordance with Documents Submitted to City. The Unrestricted Sale will be closed in accordance with the terms and conditions of all of the documents submitted to and approved by City, including, without limitation, the final sales contract and all other related documents which set forth the terms of the sale of the Property. 2. No Additional Consideration. Neither the Market Purchaser nor any other party has paid or will pay Owner and Owner has not and will not receive from Market Purchaser or any other party, money or other consideration, including personal property, for the Property over and above the $380,000 sales price as set forth in the final sales contract and other related documents submitted to the City. 3. Unauthorized Transfer. In the event that the Property is transferred in violation of the terms of the Agreement or false or misleading statements are made in any document submitted to the City by Owner or Market Purchaser in violation of the terms of this Certification, City has the right to refuse to reconvey the liens of the Agreement and Deed of Trust, foreclose on the Property or file an action at law or in equity as it deems appropriate. Owner and Market Purchaser shall indemnify, defend and hold the City and its officials, employees, and agents ("City Parties") harmless and reimburse City Parties' for any and all expenses, legal fees and costs for any action City Parties reasonably take in good faith in enforcing the terms of the Agreement or this Certification. Any costs, liabilities, or obligations incurred by Owner or Market Purchaser associated with the return of any moneys paid or received in violation of the Agreement shall be borne exclusively by the Owner and/or Market Purchaser. 4. Limitation. Acceptance of this Certification by City shall in no way operate to prohibit City from taking the position that the requirements for an Unrestricted Sale under the terms of the Agreement have not been satisfied or to reject any documentation provided in accordance with Section 13 of the Agreement as unsatisfactory. 5. Construction. This Certification shall be governed by and construed in accordance with the laws of the State of California. This Certification has been reviewed and negotiated by City, Owner and Market Purchaser at arms' length with the benefit of or opportunity to seek the assistance of legal counsel and shall not be construed against either party. The titles and captions of this Certification are inserted for convenience only and in no way define, limit, extend or modify the scope of intent of this Certification. 6. Severability. If any section or provision of this Certification is declared invalid or unenforceable by any court of competent jurisdiction, said determination shall not affect the validity or enforceability of the remaining terms hereof. No such 2 determination in one jurisdiction shall affect any provision of this Certification to the extent it is otherwise enforceable under the laws of any other applicable jurisdiction. IN WITNESS WHEREOF, Owner and Market Purchaser have executed this Certification as of the day and year first written above. MARKET PURCHASER: OWNER: Wy Ryan Kevin Dale Reimer 70/07kk-/eraaair �/.IS& %I%// fi//I - ' Ka •y Ly ' -imer 3 Exhibit "A" The land referred to herein below is situated in the City of Arroyo Grande, County of San Luis Obispo, State of California, and is described as follows: Lot 54 of Tract Mo. 2310-2, in the City of Arroyo Grande, County of San Luis Obispo, State of California, according to the map recorded May 23, 2006 in Book 28, Page 45 of Maps, in the office of the County Recorder of said County. APN: 077-255-055 4