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HomeMy WebLinkAboutContracts & Agreements_19-2017 N Kelly Simoneau Escrow Officer First American kstmoneau@Flrstam.com orn arr C Title Insurance 3281 E Guasti Road,Suite 440 raw Company Ontario,CA 91761 NATIONAL COMMERCIAL SERVICES Phone Number (909)510 6206 FAX (877)461 2088 City of Redlands, a municipal corporation November 22, 2016 P 0. Box 3005 Redlands, CA 92373 Re' Property 1615 Park Avenue Redlands, CA File No NCS-818580-ONTI ( ICS) Dear Mr Boatman Regarding the sale of your property referenced above, First American Title Insurance Company National Commercial Services will be handling your transaction In connection with the above referenced transaction COMPLETE IN FULL and/or SIGN AND RETURN the enclosed Items • California Withholding Package Information • FIRPTA Affidavit (AKA Non-Foreign Certificate and Request for Taxpayer Identification Number) • Loan Information Sheet • Exchange Information Worksheet • Owner's Affidavit • Proceeds Disbursement Information • Certification for Information Reporting on the Sale of Property(IRS 1099-5 Reporting Form) • Rent Statement PLEASE SIGN AND RETURN, retain the copy for your records, • Receipt for Natural Hazard Disclosure SIGN AND ACKNOWLEDGE BEFORE A NOTARY PUBLIC the enclosed items All documents should be signed Exact/yas your name(s) appear, if your names appear incorrectly, please contact your Escrow Officer immediately so that new documents can be prepared • Grant Deed ENCLOSED please find the following for your records, • Entity Document Request List(please provide applicable documentation) • Natural Hazard Disclosure Report • Preliminary Title Report/Commitment for Title Insurance • Escrow Acceptance Letter Please note that all original recordable documents must be sent directly to escrow Should you have any questions or need further assistance, please contact the undersigned We appreciate the opportunity to serve you d First American Title Company National Commercial Services File No NCS-818580-ONT1 (KS) Date, 11/21/2016 Sincerely, Kelly Simoneau Escrow Officer First American Title Company KS/mv Via Email a 11fornia rims & Instructions r f l- 593_ E 2016 Members of the Franchise Tax Board Betty T Yee, Chair Jerome E Horton, Member Michael Cohen, Member This booklet contains: Form 593-C, Real Estate Withholding Certificate Form 593-E, Real Estate Withholding — Computation of Estimated Gain or Loss "bf California � anchise Tax Board 2016 California Forms 593-C, 593-E, and Instructions Table of Contents Withholding Calculation The two methods used for calculating the withholding amount are the Total General Information 2 Sales Price Method and the Optional Gain on Sale Election Method The Form 593 C,Real Estate Withholding Certificate 3 withholding amount is determined under the Total Sales Price Method by Instructions for Form 593 C. ....... 4 multiplyingthe selling Form 593 E Real Estate Withholding— g price,boot,or installment sale payment by 3 1/3°/n (0333) The withholding amount is determined under the Optional Gain on Sale Computation of Estimated Gam or Loss... ........... .... . . . 6 Election Method by multiplying the estimated gain by the seller's/transferor's Instructions for Form 593E 7 maximum tax rate How to Figure Your Basis 8 How to Get California Tax Information . 9 D Withholding Agent Instructions General Information Provide Forms 593,Real Estate Withholding Tax Statement,593 C,593 E,and 593 I,with instructions to each seller/transferor as soon as escrow opens If the A Important Information sale qualifies for an automatic exemption(the sales price is$100,000 or less, Installment Sales-The withholding agent is required to report the sale or the transferor is a bank acting as a trustee other than a trustee of a deed of trust,or the properly is being foreclosed upon transfer as an installment sale if the transaction is structured as an installment the farms are not required sale as evidenced by a promissory note The withholding agent is required to Make certain you use the correct farm and thatt the year on the form is the year that escrow closed withhold 3 1/3%(0333)of the first installment payment Buyers/Transferees are required to withhold on theprincipal ortion of each Instruct the seller/transferor to complete and sign Form rly C and return it to q p the REEP by the close of escrow Incomplete or improperly completed farms subsequent installment payment if the sale of California real property is may not exempt the seller/transferor from withholding Form 593 C cannot be structured as an installment sale For more information,get Form 593 I,Real accepted after the close of escrow Estate Withholding Installment Sale Acknowledgement REEP If,during the escrow,an individual seller/transferor transfers title to a Registered Domestic Partners(RDP) For purposes of California income corporation or partnership and then the corporation or partnership transfers title tax,references to a spouse,husband,or wife also refer to a California RDP to the buyer/Iransferee,then there are two transfers far withholding purposes unless otherwise specified When we use the initials RDP they refer to both a Accordingly,two separate Forms 593 C should be completed far withholding California registered domestic"partner"and a California registered domestic Purposes The individual must complete one form for the transfer to the corporation or partnership The corporation or partnership must complete the "partnership"as applicable For more information on RDPs,get FTB Pub 737, other form for the transfer to the buyer/transferee Tax Information for Registered Domestic Partners B Purpose • If the seller/transferor checked any box in Part II,Certifications which fully exempt the sale from withholding,the seller/transferor is exempt from Use this booklet for real estate sales or transfers closing in 2016 withholding You are relieved of the real estate withholding requirements if, Withholding is required when California real estate is sold or transferred The based on all the information that you have knowledge of,the seller/transferor amount withheld from the seller/transferor is sent to the Franchise Tax Board certifies an exemption from withholding (FTB)as required by California Revenue and Taxation Code Section 18662 " If the seller/transferor checked any box in Part III,Certifications that may partially or fully exempt the sale from withholding,the seller/transferar may Withholding is not required if any of the fallowing apply qualify for a partial or complete withholding exemption Read the specific line The total sales price is$100,000 or less instructions to determine the amount to withhold and any additional • The property is being foreclosed upon(sold pursuant to a power of sale requirements under a mortgage or deed of trust,sold pursuant to a decree of foreclosure, " As to Part III,line 12 box only,the withholding agent is required to check the or by a deed in lieu of foreclosure) box if the transaction is structured as an installment sale,as evidenced by a The transferor is a hank acting as a trustee other than a trustee of a deed promissory note As to this box only,the signature of the seller/transferor is • not required The withholding agent should also complete Form 593,Real of trust Estate Withholding Tax Statement,Part III,line 3 and check box B, • The seller/transferor certifies to an exemption See the exemptions on Installment Sale Payment Form 593 C,Part II and Part III • Except as to an installment sale if the seller/transferor did not check any box The following are excluded from withholding and completing this form in Part II or Part III,the withholding will be 3 1/3%(0333)of the total sales • The United States and any of its agencies or instrumentalities price,or the optional gain on sale withholding amount from line 5 of Form • A state,a possession of the United States,the District of Columbia,or any 593 If the type of transaction is an installment sale,then you are required to of its political subdivisions or instrumentalities withhold 3 1/3%(0333)of the first installment payment For more information about real estate withholding,get FTB Pub 1016,Real • Except as to an installment sale,if the seller/transferor does not return the completed Form 593 and Form 593 C by the close of escrow,you are required Estate Withholding Guidelines. to withhold 3 1/3%(0333)of the total sales price If the tyke of transaction is If you are a seller/transferor an installment sale,then you are required to withhold 3 1/3%(0333)of the first installment payment • Use Form 593 C to determine whether you qualify for a full or partial As the REEP,you are required to withhold and complete Form 593 for each withholding exemption Keep this farm for five years seller/transferor that was withheld upon Give one copy of Form 593 to the • Use Form 593 E to determine your gain or loss on the sale and to calculate seller/transferor After the close of the month,the REEP mails one copy of all of the optional gain on sale withholding amount Keep this form for five years the Forms 593 completed during the month and any Form 593 I and promissory note,to the FTB with the total amount with keld for all transactions that closed C Real Estate Withholding during the month However,the REEP has the option to send in one payment Real estate withholdingis aprepayment of income tax due from the gain on a and the related Form 593,and any Form 593-I and promissory note,if 9 applicable,for each escrow sale of California real estate If the amount withheld is more than the income Regardless of whether you send one payment for the month or one payment for tax liability,we will refund any available difference between the amounts when each escrow,Forms 593,any required Form 593-I and promissory note,and the you file a tax return after the end of the taxable year withholding payment are due to theFTB by the 20th day of the month following Although the law requires the buyer/transferee to withhold,the the month you closed escrow As the REEP the the withholding to the FTB, buyer/transferee can request the Real Estate Escrow Person(REEP)to do the you must include your name and telephone number as a contact for the withholding A REEP is any person involved in closing the real estate remittance transaction which includes any attorney,escrow company,or title company,or Do not send Form 593-C to the FTS The REEP retains this form for a minimum any other person who receives and disburses payment and remits withholding of five years and must provide it to the FTB upon request to the FTB for the sale of real property Page 2 Form 593-C/Form 593 E Booklet 2015 TAXABLE YEAR ■ CALIFORNIA FORM 2017 Real Estate Withholding Certificate 593-C Part I—Seller/Transferor Information Return this form to your escrow company. Nang 1T k1 dF Re1DLAnb5 A frWAVetPA1 corQo«`rDO 95 6000 66 Spouse's/RDP's name(if jointly owned) Spouse's/RDP's SSN or ITIN(if jointly owned) Address{apt./ste. room PO Bax,or PMB no E FEIN [::]CA Corp no CA SOS file no 1 P O Box 3005 915-71 7 City(If you have a foreign address,see instructions) State ZIP Code Ownership Percentage Redlands CA 92373 /Do Property address(if no street address,provide parcel number and county) 1615 Park Avenue Redlands,CA l To certify that you qualify for a full or partial withholding exemption,check all boxes that apply to the property being sold or transferred (See instructions) Part II—Certifications which fully exempt the sale from withholding 1 The property qualifies as the seller's/transferor's(or decedent's,if sold by the decedent's estate or trust)principal residence within the meaning of Internal Revenue Code(IRC)Section 121 2 The seller/transferor(or decedent,if sold by the decedent's estate or trust)last used the property as the seller's/transferor's(decedent's)principal residence within the meaning of IRC Section 121 without regard to the two year time period 3 ❑ The seller/transferor has a loss or zero gain for California income tax purposes on this sale To check this box you must complete Form 593-E, Real Estate Withholding Computation of Estimated Gain or Loss,and have a loss or zero gain on line 16 4 ❑ The property is being compulsorily or involuntarily converted and the seller/transferor intends to acquire property that is similar or related in service or use to qualify for nonrecognition of gain for California income tax purposes under IRC Section 1033 s ❑ The transfer qualifies for nonrecognition treatment under IRC Section 351(transfer to a corporation controlled by the transferor)or IRC Section 721(contribution to a partnership in exchange for a partnership interest) 6 [] The seiler/transferor is a corporation(or a limited liability company(LLC)classified as a corporation for federal and California income tax purposes)that is either qualified through the California Secretary of State(SOS)or has a permanent place of business in California 7. ❑ The seer/transferor is a California partnership or a partnership qualified to do business in California(or an LLC that is classified as a partnership r federal and California income tax purposes and is not a single member LLC that is disregarded for federal and California income tax purposes) 8 T The seller/transferor is a tax-exempt entity under California or federal law 9 ❑ The seller/transferor is an insurance company,individual retirement account,qualified pension/profit sharing plan,or charitable remainder trust Part III—Certifications that may partially or fully exempt the sale from withholding Real Estate Escrow Person(REEP):See instructions for amounts to withhold 10 ❑ The transfer qualifies as a simultaneous like kind exchange within the meaning of IRC Section 1031 11 ❑ The transfer qualifies as a deferred like kind exchange within the meaning of IRC Section 1031 12 ❑ The transfer of this property is an installment sale where the buyer/transferee is required to withhold on the principal portion of each installment payment Copies of Form 593 I,Real Estate Withholding Installment Sale Acknowledgement,and the promissory note are attached Seller/Transferor Signature To learn about your privacy rights, how we may use your information,and the consequences for not providing the requested information,go to ftb ca.gov and search for privacy notice To request this notice by mail,call 800.852 5711 Under penalties of penury,I declare that I have examined the information on this form,including accompanying schedules and statements,and to the best of my knowledge and belief, it is true,correct,and complete I further declare under penalties of perjury that if the facts upon wthic:4 this form are based change,I will promptly notify the REEP PAUL W POS1SR ( l11 1 Seller's(Transferor's Name and Title m�1y D Q a re Seller's/Transferor's Sign _( � �9 to Z//i^/ Spouse's1RDP's Name Spouse's/RDP's Signature Date Seller/ If you checked any box in Part II,you are exempt from real estate withholding Transferor If you checked any box in Part III,you may qualify for a partial or complete withholding exemption Except as to an installment sale,if the seller/transferor did not check any box in Part II or Part III of Form 593-C,the withholding will be 3 1/3% (0333)of the total sales price or the optional gain on sale withholding amount from line 5 of Form 593, Real Estate Withholding Tax Statement If the seller/transferor does not return the completed Form 593 and Form 593 C by the close of escrow the withholding will be 3 1130/0(.0333) of the total sales price,unless the type of transaction is an installment sale If the transaction is an installment sale,the withholding will be 3 1130/0(0333)of the down payment If you are withheld upon the REEP should give you one copy of Form 593 Attach a copy to the lower front of your California income tax return and make a copy for your records ■ 7131173 r� Form 593-C C2 2016 ■ 2017 Instructions for Form 593-C Real Estate Withholding Certificate References in these instructions are to the Internal Revenue Code(IRC)as of January 1,2015,and to the California Revenue and Taxation Code(R&TC) General Information I€the seller/transferor is an individual,enter the social security number In general,for taxable years beginning an or after January 1,2015, (SSN)or individual taxpayer identification number(MN) If the sellers/transferors are spouses/registered domestic partners(RDPs)and California law conforms to the Internal Revenue Code(IRC)as of January 1 plan to file a joint return,enter the name and SSN or ITIN for each 2015 However,there are continuing differences between California and spouse/RDP Otherwise,do not enter information for more than one federal law When California conforms to federal tax law changes,we do not seller/transferor Instead,complete a separate Form 593•C for each always adopt all of the changes made at the federal level For more seller/transferor information,go to ftb.ca.gov and search for conformity Additional If you do not have an SSN because you are a nonresident or a resident information can be found in FTB Pub 1001,Supplemental Guidelines to alien for federal tax purposes,and the Internal Revenue Service(IRS) California Adjustments,the instructions for California Schedule CA(540 or issued you an ITIN,enter the ITIN in the space provided for the SSN 540NR),and the Business Entity tax booklets An ITIN is a tax processing number issued by the IRS to individuals who Like Kind Exchanges—For taxable years beginning an or after January 1, have a federal tax filing requirement and do not qualify for an SSN It is a 2014,California requires taxpayers who exchange property located in nine digit number that always starts with the number 9 California for like kind property located outside of California,and meet all of If the seller/transferor is a business,enter the business name in the the requirements of the IRC Section 1.031,to file an annual information return with the Franchise Tax Board(FTB) For more information,get form business name field along with the federal employer identification number FTB 3840,California Like Kind Exchanges,or go to ftb.ca gov and search (FEIN),CA Corporation number(CA Corp no) or CA Secretary of State(CA for like kind SOS)file number If the seller/transferor is a grantor trust,enter the grantor's individual Purpose name and SSN For tax purposes,the grantor trust is disregarded and the Use Form 593 Cr Real Estate Withholding Certificate,to determine whether individual seller/transferor must report the sale and claim the withholding you qualify for a full or partial withholding exemption on their individual tax return If the trust was a grantor trust that became Qualifying for an exemption from withholding or being withheld upon does irrevocable upon the grantor's death,enter the name of the trust and the not relieve you of your obligation to file a California income tax return and trust's FEIN Do not enter the decedent's or trustee's name or SSN pay any tax due on the sale of California real estate If the seller/transferor is a non grantor trust,enter the name of the trust You may be assessed penalties if and the trust's FEIN Do not enter trustee information • You do not file a tax return If the seller/transferor is a single member limited liability company • You file your tax return late (SM LLC),enter the name and tax identification number of the single • The amount of withholding does not satisfy your tax liability member The seller/transferor must submit this form before the close of escrow to For all other non individual sellers/transferors,enter the FEIN,CA Corp no, prevent withholding on the transaction After escrow has closed,amounts or CA SOS file number withheld may be recovered only by claiming the withholding as a credit on Ownership Percentage the appropriate year's tax return Enter your ownership percentage rounded to two decimal places(e.g How to Claim the Withholding 66.67%) If you are on the title for incidental purposes and you have no To claim the withholding credit,report the sale or transfer as required and financial ownership,enter 0 00 and skip to Seller/Transferor Signature You enter the amount from line 5 of Form 593,Real Estate Withholding Tax will not be withheld upon Statement,on your California tax returns as withholding from Form(s)592 Examples of sellers/transferors who are on title for incidental purposes are B or 593 If your marital or filing status has changed after escrow closed • Co signers on title(e.g,parents co signed to help their child qualify for and before filing your California tax return,contact us at 888 792 4900 the loan) prior to filing your tax return for instructions on how to claim your • Family members on title to receive property upon the owner's death withholding credit Claim your withholding credit on one of the following Property Address • Form 540,California Resident Income Tax Return Enter the address(or parcel number and county)of the CA real property • Form 540NR Long,California Nonresident or Part-Year Resident Income transferred Tax Return Part II—Certifications Which Fully Exempt Form 541,California Fiduciary Income Tax Return Withholding • Form 100 California Corporation Franchise or Income Tax Return Line 1 through Line 9 Form 1005,California S Corporation Franchise or Income Tax Return • Form 100W,California Corporation Franchise or Income Tax Return— Check all boxes that apply to the property being sold or transferred Water's Edge Filers Line 1—Principal Residence Form 109,California Exempt Organization Business Income Tax Return To qualify as your principal residence under IRC Section 121,you(or the • Form 565,Partnership Return of Income decedent)generally must have owned and lived in the property as your • Form 568,Limited Liability Company Return of Income main home for at least two years during the five year period ending on the date of sale Military and Foreign Service get FTB Pub 1032,Tax Specific Instructions Information for Military Personnel Private Mail Box(PMB)—Include the PMB in the address field Write You can have only one main home at a time If you have two homes and "PMB' first then the box number Example 111 Main Street PMB 123 live in both of them,the main home is the one you lived in most of the Foreign Address—Follow the country's practice for entering the city time county,province,state,country,and postal code,as applicable,in the There are exceptions to the two year rule if the primary reason you are appropriate boxes Do not abbreviate the country name selling the home is for a change in the place of employment,health,or unforeseen circumstances such as death,divorce or termination of Part I—Seller/Transferor Information registered domestic partnership,or loss of job,etc For more information Enter the name,tax identification number,and address of the about what qualifies as your principal residence or exceptions to the two seller/transferor If the seller/transferor does not provide a tax identification year rule,get federal Publication 523,Selling Your Home To get federal number,then Form 593 C is void,and withholding is required publications go to irs.gov,or call 800.829 3676 Note If you choose to provide a copy of Form 593 C to the If only a portion of the property qualifies as your principal residence,a buyer/transferee,delete the seller's/transferor's tax identification number on second Form 593 C will need to be completed to certify an exemption on the buyer/transferee, sferee delete copy the portion not used as a principal residence The allocation method should be the same as the seller/transferor used to determine depreciation Page 2 Real Estate W/H Forms Booklet 2016 Line 2-Property last used as your principal residence When completing Form 593 C as the single member of a disregarded LLC, If the property was last used as the seller's/transferor's,or decedent's write on the bottom of the form that the information on the form is for the principal residence within the meaning of IRC Section 121 without regard to single member of the LLC,so the Real Estate Escrow Person CREEP)will the two year time period,no withholding is required If the last use of the understand why it is different from the recorded title holder property was as a vacation home,second home,or rental,you do not I It the single member is. Complete Form 593-C using qualify for the exemption You must have lived in the property as your main home I An individual The individual's information If you have two homes and live in both of them,the main home is the one I you lived in most of the time A corporation The corporation's information Line 3-Loss or Zero Gain I A partnership The partnership's information You have a loss or zero gain for California income tax purposes when the I An LLC The single member's information amount realized is less than or equal to your adjusted basis You must Line 8 Tax-Exempt Entity complete Form 593 E,Real Estate Withholding-Computation of Estimated Withholding is not required if the seller/transferor is tax exempt under Gain or Loss,and have a foss or zero gain on line 16 to certify that the either California or federal law(e.g,religious,charitable,educational,not transaction is fully exempt from withholding for profit organizations,etc) You may not certify that you have a net loss or zero gain just because you Line 9 Insurance Company,Individual Retirement Account, do not receive any proceeds from the sale or because you feel you are Qualified Pension or Profit Sharing Plan,or Charitable Remainder selling the property for less than what it is worth Trust Line 4-Involuntary Conversion Withholding is not required when the seller/transferor is an insurance The property is being involuntarily or compulsorily converted when both of company,individual retirement account,qualified pension or profit sharing the following apply plan,or a charitable remainder trust • The California real property is transferred because it was(or threatened part III-Certifications That May Partially or Fully to be)seized,destroyed,or condemned within the meaning of IRC Exempt the Sale From Withholding Section 1033 P g • The seller/transferor intends to acquire property that is similar or related Complete Part III only if you did not meet any of the exemptions in Part II in service or use in order to be eligible for nonrecognition of gain for Line 10-Simultaneous Exchange California income tax purposes If the California real property is part of a simultaneous like kind exchange Get federal Publication 544,Sales and Other dispositions of Assets,for more within the meaning of IRC Section 1031,the transfer is exempt from information about involuntary conversions withholding However,if the seller/transferor receives money or other Line 5 Non recognition Under IRC Section 351 or 721 property(in addition to property that is a part of the like fond exchange) The transfer must qualify for nonrecognition treatment under IRC Section exceeding$1,500 from the sale,the withholding agent must withhold 351(transferring to a corporation controlled by transferor)or IRC Section Line 11 Deferred Exchange 721(contributing to a partnership in exchange for a partnership interest) If the California real property is part of a deferred like kind exchange within Line 6 Corporation the meaning of IRC Section 1031,the sale is exempt from withholding at A corporation has a permanent place of business m this California when it is the time of the initial transfer However,if the seller/transferor receives organized and existing under the laws of California or it has qualified money or other property(in addition property that is a parte the f through the CA SOS to transact intrastate business A corporation not like kind exchange)exceeding$1,500 from the sale,the qualified qualified to transact intrastate business(such as a corporation engaged intermediary must withhold exclusively in interstate commerce)will be considered as having a If the exchange does not take place or if the exchange does not qualify for permanent place of business in California only if it maintains an office in nonrecognition treatment,the intermediary or accommodator must withhold California that is permanently staffed by its employees after the sale 3 1/3%(0333)of the total sales price S corporations must withhold on nonresident S corporation shareholders Line 12-Installment Sale Get FTB Pub 1017,Resident and Nonresident Withholding Guidelines,for The REEP reports the sale or transfer as an installment sale if there will be more information at least one payment made after the tax year of the sale The withholding 3 Line 7-Partnership or Limited Liability Company(LLC) 1/3%(0333)of the down payment during escrow Partnerships and LLCs are required to withhold on nonresident partners and Buyers/Transferees are required to withhold on the principal portion of all members For more information,get FrB Pub 1017 payments made following the close of escrow unless an approval letter for Withholding is not required if the title to the property transferred is the elect-out method is received recorded in the name of a California partnership or it is qualified to do When the withholding amount on the down payment is sent to the FTB,the business in California FTB must also receive a completed Form 593 I,Real Estate Withholding Withholding is not required if the title to the property transferred is in the Installment Sale Acknowledgement,a completed Form 593,and a copy of name of an LLC,and the LLC meets both of the following the promissory note • It is classified as a partnership for federal and California income tax purposes Seller/Transferor Signature • It is not a SMLLC that is disregarded for federal and California income tax You must sign this form and return it to your RESP by the close of escrow purposes for it to be valid Otherwise,the REEP must withhold the full 3 1/3% If the LLC meets these conditions,the LLC must still withhold on (0333)of the total sales price or the optional gain on sale withholding nonresident members Get FTB Pub 1017 for more information amount from line 5 of Form 593 that is certified by the seller/transferor only If the SMLLC is classified as a corporation for federal and California income for the optional gain on sale election tax purposes,then the seller/transferor is considered a corporation for Penalty-Any seller/transferor who,for the purpose of avoiding the withholding purposes Refer to Line 6 withholding requirements,knowingly executes a false certificate is liable for If the LLC is an SMLLC that is disregarded for federal and California income a penalty of$1,000 or 20%of the required withholding amount,whichever tax purposes,then that single member is considered the seller/transferor is greater and title to the property is considered to be in the name of the single member for withholding purposes Real Estate W/H Forms Booklet 2016 Page 3 TAXABLE YEAR Real Estate Withholding — CALIFORNIA FORM 2016 Computation of Estimated Gain or Loss 593-E (You are required to complete this form if you claim an exemption due to a loss or zero gain or if you elect an optional gam on sale withholding amount) Part I—Seller/Transferor Name SSN or ITIN Spouse's/RDP's name(if jointly owned) Spouse's/RDP's SSN or ITIN(if jointly owned) Address(apt./ste. room,PO Box,or PMB no.) =FEIN =CA Carp No =CA SOS file no City(If you have a foreign address,see instructions.) State ZIP code Property address(if no street address,provide parcel number and county) Part II - Computation 1 Selling price ....................................................................................... .................................................................................................................... 2 Selling expenses 2 ....................................................................................................................................................................................................... 3 Amount realized Subtract line 2 from line 1 3 »'.ir...................»........_................................................................................................................ 4 Enter the price you paid to purchase the property(If you acquired the property other than by purchase, see instructions,How to Figure Your Basis) 4 .................................................................................................... 5 Seller/Transferor paid points 5 .........................1111.. 6 Depreciation 6 7 Other decreases to basis .......................""".............. 8 Total decreases to basis Add line 5 through Zine 7 g ...................................................................................................... 9 Subtract line$from fine 4 ............................................................................................................................................... 9 10 Cost of additions and improvements 10 .....................1 11.11........... 11 11 Other increases to basis ...................................................................................................... 12 Total increases to basis Add line 10 and line 11 _..........................................111......................1 12 13 Adjusted basis Add fine 9 and line 12 13 14 Enter any suspended passive activity lasses from this property14 ................................................................................ i5 15 Add line 13 and line 14 ............................................................................................................................................................................................ 16 Estimated gain or loss on sale Subtract line 15 from line 3 and enter the amount here If you have a loss or zero gains,skip lines 17 and 18.Complete the Seller/Transferor Signature area below and check the box on Form 593-C,Real Estate Withholding Certificate, Part II line 3 If you have a gain,go to line 17 16 17 Optional gain on sale withholding amount Check the applicable box for the filing type Individual 12 3% [::] Corporation 8.84% ❑ Bank and Financial Corporation 10.84% Non California Partnership 12.3-1. 0 S Corporation 13.8% F-� Financial S Corporation 15.8% Multiply the amount on line 16 by the tax rate for the filing type selected above and enter the result on line 17 This is.the optional gain on sale withholding amount If you elect the optional gain on sale withholding amount on line 17 get Farm 593,Real Estate Withholding Tax Statement,and check the appropriate box on line 4 (Boxes B-G)for the Optional Gain on Sale Electron,and transfer the amount on line 17 to Form 593 line 5 Sign Form 593 to certify the election .. 17 ....................... ................................................................................................................... .... 18 Total sales price withholding amount Multiply the selling price on line 1 by 3 1/3%(0333)and enter the amount on line 18 This is the total sales price withholding amount If you select the total sales price withholding amount an line 18,check Box A "3 1/3%(0333)x Total Sales Price"on line 4 of Form 593,and transfer the amount on line 18 to Form 593,line 5 18 Seller/Transferor Signature Title and escrow persons and exchange accommodators are not authorized to provide legal or accounting advice for purposes of determining withholding amounts Transferors are stronaly encouraged to consult with a comoetent tax orofesslonal for this ouroose. To learn about your privacy rights,how we may use your information,and the consequences for not providing the requested information,go to ftb.ca.gov and search for privacy notice To request this notice by mail call 800.852.5711 Under penalties of perjury,I hereby certify that the information provided above is,to the best of my knowledge true and correct If conditions change,I will promptly inform the withholding agent, I understand that I must retain this form in my records for 5 years and that the Franchise Tax Board may review relevant escrow documents to ensure withholding compliance Completing this form does not exempt me from filing a California income or franchise tax return to report this sale Seller's/Transferor's Name Seller's/Transferor's Signature Date It is unlawful to forge Spouse's/RDP's Name(if jointly owned) a spouse's/ADP's signature Spouse's/RDP's Signature(if jointly owned) Date 0 7151163 I Form 593 E C2 2015 . 2016 Instructions for Form 593-E Real Estate Withholding - Computation of Estimated Gain or Lass References in these instructions are to the Internal Revenue Code(IRC)as of January 1 2015,and to the California Revenue and Taxation Code(R&TC) General Information Line 4 Purchase Price In general,for taxable years beginning on or after January 1,2015,California If you acquired this property by purchase,enter your purchase price Your law conforms to the Internal Revenue Code(IRC)as of January 1,2015 purchase price includes the down payment and any debt you incurred,such However,there are continuing differences between California and federal law as a first or second mortgage or promissory notes you gave the When California conforms to federal tax law changes,we do not always adopt seller/transferor in payment for the property If you acquired the property by all of the changes made at the federal level For more information,go to gift,inheritance,exchange,or any way other than purchase,see How to ftb ca gov and search for conformity Additional information can be found in Figure Your Basis FTB Pub 1.001,Supplemental Guidelines to California Adjustments,the Line 5 Seller/Transferor Paid Points instructions for California Schedule CA(540 or 540NR),and the Business Entity Points are charges paid to obtain a loan They may also be called loan tax booklets origination fees,maximum loan charges,loan discount,or discount points If Purpose the seller/transferor paid points for you when you acquired the property, Use Form 593-E,Real Estate Withholding Computation of Estimated Gain or enter the amount paid by the seller/transferor on your behalf on line 5, Loss,to estimate the amount of your gain or loss for withholding purposes and unless you already subtracted this item to arrive at the amount for line 4 to calculate an optional gain on sale withholding amount This form is used for Line 6 Depreciation sales closing in 2016 Enter the amount of depreciation you deducted,or could have deducted,on The seller/transferor completes this form Title and real estate escrow persons your California income tax return for business or investment use of the (REEP)and exchange accommodators are not authorized to provide legal or property under the method of depreciation you chose If you took less accounting advice for purposes of determining withholding amounts depreciation on your tax return than you could have under the method Sellers/transferors are strongly encouraged to consult with a tax professional chosen,you must enter the amount you could have taken under that for this purpose method If you did not take a depreciation deduction,enter the full amount of depreciation you could have taken Get federal Publication 946,How to Optional Gain on Sale Withholding Amount is the withholding amount Depreciate Property,for more information calculated when the optional gain on sale election has been made by the If you do not know how much depreciation you deducted or were allowed, seller/transferor,which includes providing a signature under penalty of you can make an estimate of the amount of depreciation(for withholding perjury The seller/transferor makes the election and provides the signature on purposes only) To estimate the depreciation,divide the purchase price plus Form 593 E The withholding amount is calculated by multiplying the the cost of additions and improvements by 27 5 and multiply that by the seller's/transferor's applicable tax rate by the estimated gain determined on number of years you used the property for business use(up to 27.5 years) Form 593 E Example-Mary bought a house 20 years ago for$150,000 and has used it You may use estimates when you complete this form,but the estimates must as a rental property for the last 18 years Prior to renting the house,she not result in the calculation of a loss when you actually have a gain Any added a pool which cost her$25,000 Mary's depreciation is estimated as seller/transferor who,for the purpose of avoiding the withholding follows requirements,knowingly executes a false certificate is liable for a penalty of Cost $150,000 $1,000 or 20%of the required withholding amount,whichever is greater Plus additions 25,000 This form is signed under penalty of perjury The seller/transferor must keep Total 175,000 this form for 5 years and provide it to the Franchise Tax Board(FTB)upon Divided by 27 5= 6,364 request However the seller/transferor is not required to provide this form to the withholding agent or buyer/transferee Multiply by 18 years= $114,552 Mary's estimated depreciation to enter on line 6 is$114,552 Specific Instructions Line 7-Other Decreases to Basis Include any other amounts that decrease your basis,such as Private Mail Box(PMB)-Include the PMB in the address field Write"PMB" . Casualty or theft loss deductions and insurance reimbursements first,then the box number Example 111 Main Street PMS 123 • Energy credits claimed for the cost of energy improvements added to youf Foreign Address-Follow the country's practice for entering the city,county, basis province,state,country,and postal code,as applicable,in the appropriate • Payments received for granting an easement or right-of-way boxes Do not abbreviate the country name Line 10-Additions and Improvements Part I-Seller/Transferor These add to the value of your property,prolong its useful life,or adapt it to new uses Examples include room additions,landscaping,new roof, Enter the name,tax identification number,and address of the seller/transferor insulation,new furnace or air conditioner,remodeling,etc The cost of If the seller/transferor is an individual,enter the social security number repairs may not be included unless they are part of an extensive remodeling (SSN)or individual taxpayer identification number(ITIN)If the or restoration project Do not include any additions or improvements on line sellers/transferors are spouses/registered domestic partners(RDPs)and plan 10 that were included on line 4 to file a joint return,enter the name and SSN or ITIN for each spouse/RDP Line 11-Other Increases to Basis Otherwise,do not enter information for more than one seller/transferor Include the amounts paid for any other items that increase the basis of the Part II- Computation property,such as Line 1-Selling Price • Settlement fees and closing costs you incurred when you bought the propertyThe selling price is the total amount you will receive for your property It . The amount you paid for special assessments for items such as water includes money,as well as,all notes,mortgages,or other debts assumed by connections paving roads and building ditches the buyer as part of the sale,plus the fair market value of any other property . The cost of restoring damaged property from a casualty loss,or cost of or any services you receive extending utility service lines to the property Line 2-Selling Expenses Line 14 Passive Activity Losses Selling expenses include commissions,advertising fees,legal fees,and loan You may only use suspended passive activity losses that directly relate to the charges that will be paid by the seller/transferor,such as loan placement fees property sold other losses such as net operating losses,capital loss carry or points forwards,stock losses and passive activity losses from other properties Line 3-Amount Realized cannot be used The amount realized is the selling price minus the selling expenses Form 593-C/Form 593-E Booklet 2015 Page 7 Line 16—Estimated Gain or Loss on Sale withholding amount on the total sales price shown on line 18 If you If you have a zero gain or loss,check the box on line 3 of Form 593-C, elect the optional gam on sale withholding amount on line 17,check the Real Estate Withholding Certificate Complete and sign Form 593 C and appropriate box on line 4(Boxes B G)for the Optional Gain on Sale give it to your RESP You will not be subject to withholding on this sale Election,on Form 593,Real Estate Withholding Tax Statement,then Keep Form 593-E for 5 years to document your calculations and provide transfer the amount on line 17 to Form 593,line 5 Sign Form 593 to to the FTB if requested certify the election Keep Form 593 E for 5 years to document your If you have a gain,this is your estimated amount of gain on the sale of calculations and provide to the FTB upon request your California property Go to line 17 Line 18—Total Sales Price Withholding Amount Line 17—Optional Gain on Sale Withholding Amount Multiply the selling price on line 1 by 3 1/3%(0333)and enter the Multiply the amount on line 16 by the tax rate for the filing type selected amount on line 18 If you select the standard withholding amount on and enter the amount on line 17 You may compare this amount to the line 18,check Box A on line 4 of Form 593,and transfer the amount on line 18 to Form 593 line 5 How to Figure Your Basis The cost or purchase price of property is usually its basis for figuring gain or loss from its sale or other disposition However,if you acquired the property by gift,inheritance,exchange,or in some way other than purchase,you must use a basis other than its cost The following instructions only reflect the general rules Exceptions may apply Get federal Publication 551,Basis of Assets,for more information Sellers/Transferors are strongly encouraged to consult with a tax professional for this purpose How Property Was Received How to Figure Your Basis Property was received as a gift Usually,your basis is the donor's adjusted basis at the time of the gift Enter the donor's adjusted basis on line 4 Then complete the rest of the form(except line 5)with your information after you received the property 1f the fair market value(FMV)of the property at the time of the gift was less than the donor's adjusted basis,get federal Publication 551 to determine your basis Property was inherited from Usually,your basis is the FMV at the date of the individual's death You can get that valuation from the someone other than your probate documents,or if there was no probate,use the appraised value at the date of death Enter the spouse/RDP FMV on line 4 Then complete the rest of the form(except line 5)with your information after you received the property If you or your spouse/RDP originally gave the property to the decedent within one year of the decedent's death,get federal Publication 551 to determine your basis You owned the property Your basis is the FMV of the total property at the date of your spouse's/RDP's death Enter the FMV an (as community property)with line 4 Then complete the rest of the form(except line 5)with your information after the date of death your spouse/RDP who died You owned the property(m joint Your basis is the sum of- 1)the FMV of your spouse's/RDP's half of the property at the date of your tenancy)with your spouse/RDP spouse's/RDP's death,and,2)the existing basis of your half of the property at the date of your who died spouse's/RDP's death Enter the sum on line 4 Then complete the rest of the form(except line 5)with your information after the date of death Property received from your Usually,your basis is the same as it would have been without this transfer Complete Form 593-E as if spouse/RDP in connection to your you had been the only owner before and after the transfer divorce/termination of registered If your spouse/RDP transferred the property to you before July 18, 1984,get federal Publication 551 to domestic partnership determine your basis Property received in exchange Your basis will depend on whether you received the property in a nontaxable,taxable,or partially taxable for other property exchange Get federal Publication 551 to determine your basis Enter your basis on line 4 Then complete the rest of the form However,do not include any amounts on line 5 through line 10 that you included on line 4 You built the house Add the purchase price of the land and the cost of the building.Enter the total on line 4 and complete (or other improvements) the rest of the form on the property being sold If you deferred the gain from a previous home to this property,get federal Publication 551 You received the property in a Enter your basis in the property after the foreclosure on line 4 (You may need to get a tax professional foreclosure to help you with this calculation) Then complete the rest of the form(except for line 5)with your information after the foreclosure Page 8 Form 593-C/Form 593-E Booklet 2015 How to Get California Tax Information Additional Information For additional information or to speak to a representative regarding these forms,call the Withholding Services and Compliance telephone service at 888 792 4900 or 916.845 4900 FAX 916.845 9512 Or write to WITHHOLDING SERVICES AND COMPLIANCE FRANCHISE TAX BOARD PO BOX 942867 SACRAMENTO CA 94267-0651 You can download,view,and print California tax forms and publications at ftb.ca.gov. Or to get forms by mail write to TAX FORMS REQUEST UNIT FRANCHISE TAX BOARD PO BOX 307 RANCHO CORDOVA CA 95741 0307 Internet and Telephone Assistance Website ftb ca.gov Telephone 800.852 5711 from within the United States 916.845 6500 from outside the United States TTY/TDD 800.822.6268 for persons with hearing or speech impairments Asistencia Por Internet y Telefono Sitio web ftb ca.gov Telefono 800 852.5711 dentro de los Estados Unidos 916.845 6500 fuera de los Estados Unidos TTY/TDD 800.822.6268 para personas con discapacidades auditivas o del habla Form 593-C/Form 593-E Booklet 2015 Page 9 SELLER'S CERTIFICATION OF NON-FOREIGN STATUS UNDER FOREIGN INVESTMENT IN REAL PROPERTY TAX ACT ("FIRPTA") (26 U.S.C. 1445) File No NCS-818580-ONT1 For purposes of this form the following definitions shall apply 1 Seller-the person(s) or entity(ies) that hold(s) the legal title to a U.S real property interest under focal law 2 Transferor- the person(s) or entity(ies) that is/are the party(ies) treated as the transferor(s) under 26 USC 1445 (IRC Section 1445) The Seller may or may not be deemed to be the Transferor for purposes of withholding under FIRPTA This form must be completed by each Seller or Transferor All Sellers or Transferors providing this certification must have a taxpayer identification number("TIN") A TIN is not an indication that the Seller or Transferor is a resident alien or a U S citizen. Section 1445 of the Internal Revenue Code provides that a transferee (buyer) of a U S real property interest must withhold tax if the transferor is a foreign person I THIS SECTION FOR INDIVIDUAL SELLER(S)WHO IS/ARE ALSO THE TRANSFEROR(S) EACH SELLER/TRANSFEROR MUST COMPLETE AND SIGN A SEPARATE FORM. MAKE COPIES FOR EACH SELLER/TRANSFEROR TO COMPLETE To inform the transferee (buyer) that withholding of tax is not required upon my disposition of a U S real property interest, the undersigned Se[ler/Transferor hereby certifies the following 1 T am NOT a nonresident alien for purposes of U S income taxation, 2 My U,S. Taxpayer Identification (Social Security) Number is and 3 My home address is I understand that this certification may be disclosed to the Internal Revenue Service by the transferee and that any false statement I have made here could be punished by fine, imprisonment, or both Under penalties of perjury I declare that I have examined this certification and to the best of my knowledge and belief it is true, correct, and complete Signature Date II. THIS SECTION FOR ENTITY SELLERS. For U S tax purposes (including Section 1445), the owner of a disregarded entity (which has legal title to a U S real property interest under local law) will be the Transferor of the property and not the disregarded entity A FOR ENTITY SELLERS THAT ARE NOT DISREGARDED ENTITIES To inform the transferee that withholding of tax is not required upon the disposition of a U S real property interest by Seller, the undersigned Seller/Transferor hereby certifies I Seller IS NOT a disregarded entity, 2 Seller/Transferor is NOT a foreign corporation, foreign partnership, foreign trust, or foreign estate (as those terms are defined in the Internal Revenue Code and Income Tax Regulations), 3 Seller's/Transferor's Taxpayer Identification Number is 95-6000766 and 4 Seller's/Transferor's office address is 35 Cajon Street, Suite 4, Redlands, CA 92373 Seller[Transferor understands that this certification may be disclosed to the Internal Revenue Service by transferee and that any false statement contained herein could be punished by fine, imprisonment, or both Under penalties of perjury I declare that I have examined this certification and to the best of my knowledge and belief it is true, correct, and complete, and I further declare that I have authority to sign this document on behalf of Seller/Transferor Seller/Transferor ATTEST. g &J11 ] ne Donaldson, City Clerk Name. Paul W Foster ! �� t/r 7 Its, Mayor Date B. FOR ENTITY SELLERS THAT ARE DISREGARDED ENTITIES To inform the transferee that withholding of tax is not required upon the disposition of a U S real property interest by Seller, the undersigned Transferor hereby certifies. 1 Seller, [insert name of Seller entity] IS a disregarded entity as defined in 26 CFR 1 1445-2(b)(2)(iii), thus Seller's owner, [insert owner name], is therefore the Transferor, 2 Transferor is NOT a foreign corporation, foreign partnership, foreign trust, or foreign estate, nor a non-resident alien for purposes of U S income taxation (as those terms are defined in the Internal Revenue Code and Income Tax Regulations), 3 Transferor's U S Taxpayer Identification number is , and 4 Transferor's address is- [please complete address below] [Insert home address if Transferor is an individual] [Insert office address if Transferor is an entity- Transferor understands that this certification may be disclosed to the Internal Revenue Service by transferee and that any false statement contained herein could be punished by fine, imprisonment, or both Under penalties of perjury I declare that I have examined this certification and to the best of my knowledge and belief it is true, correct, and complete, and I further declare that I have authority to sign this document on behalf of Transferor Signature Date Paul W. Foster, Mayor ATTEST Jeanne Donaldson, City Clerk H 3281 E Guasti Road,Suite 440 First American Ontario,CA 91761 F Title Insurance Company NATIONAL COMMERCIAL SERVICES RE Escrow No NCS-818580-ONT1 Date 01/19/2017 Officer Kelly Simoneau Property 1615 Park Avenue Redlands,CA LOAN / OWNER'S ASSOCIATION INFORMATION REQUEST In order for us to obtain statements of account from your existing lender(s)or Owner's association, please provide us with the following information on your accounts, We must have accurate and complete information on your accounts, as some take up to 30 days to return our request Please fill out and return this form as soon as possible Federal Regulation 545-132D requires authorization in writing from you before a lender can release any payoff information to an escrow holder A delay in returning this signed and completed form could delay the close of this escrow FIRST TRUST DEED Lender Name NOT APPLICABLE Address Loan Number Phone Number Fax Number SS#/TIN SECOND TRUST DEED Lender name Address Loan Number Phone Number Fax Number SS#/TIN OWNER'S ASSOCIATION (if applicable) NOT APPLICABLE Association Name Management Co Address Account Number Phone Number Fax Number SS#/TIN Our signatures below are to be considered instructions for obtaining statements, to comply with the instructions of the above named companies; and our authorization to pay from funds due us at the close of escrow said companies'fees, including, but not limited to Statement Fees, Transfer Fees, Late Fees, Prepayment Penalties, Impound Account Shortages without our further approval Please Provide Your Forwarding Address below,so funds or documents may be sent to you after close of escrow Effective Date First American Title Insurance Company National Commercial File No NCS-818580-ONT1 (KS) Services 3281 E Guasti Road, Suite 440 Date 11/21/2016 Ontario, CA 91761 SELLER(S). City of Redlands, a municipal corporation P O Box 3005 Redlands, CA 92373 City of Redlands, a municipal corporation Name Paul W Foster Title Mayor ATTEST, JezfWe Donaldson, City Clerk a N 3281 E GuasU Road,Suite 440 r' Ontario,CA 91761 First American Ph (909)510 6206 ?Title Insurance Company FAX (877)461-2088 NATIONAL COMMERCIAL SERVICES DATE January 19, 2017 Escrow #. NCS-818580-ONT1 TO Escrow Officer Kelly Simoneau EXCHANGE INFORMATION We need the following information to process your escrow. Please complete this form and return to our office* I/We request that First American Exchange Company contact us to discuss a 1031 Exchange Or, I/we may also contact First American Exchange directly at (877) 317-1031 to discuss a Tax Deferred Exchange I/We will contact My Exchange Company listed below regarding a Tax-Deferred Exchange I/We will ask them to contact you Accommodator• Exchange Officer Exchange Number- Phone and Fax Number. E-Mail Address, Final Date to Exchange Y/ I/We are certain that we will NOT be doing a 1031 Exchange Transaction for this property I/We hereby authorize you as Escrow Holder to discuss this file with my Exchange Company in order to process this escrow Paul W Foster Mavor Lccd ' ( 09)798-7531 Name ignature Phone Number Attest- Jeanne Donaldson, City Clerk � (909)798-7531 Name sigdakure Phone Number PLEASE COMPLETE AND RETURN City of Redlands, a municipal corporation ByOaUO Y ul W Foster Title Mayor Date 3(/20 f7 ATTEST. Je:rfe Donaldson City Clerk Page 2 of 2 OWNER'S CERTIFICATION AND GAP INDEMNITY A That undersigned, Citv of Redlands ("Owner")which owns title to the real property located in the City of Redlands _, County of San Bernardino , State of California (the "Property" described in the Commitment for Title Insurance issued under NCS-818580-ONT1 (the "Commitment"), and in consideration of First American Title Insurance Company(the "Company") issuing its policies of title insurance insuring an interest in the Property under said order number, hereby represents and certifies as follows 1 That Owner is the owner of the Property and has not conveyed title to the Property to any third party and is not aware of any third party disputing the Owner's ownership of the Property, 2 That there are no delinquent real estate taxes or unpaid current real estate taxes, nor any pending or levied assessments on the Property, including but not limited to those for trees, sidewalks, streets, sewers and water lines, 3 That except as shown on the attached Exhibit A, within the last six (6) months (a) no labor, service or materials have been furnished to improve the land or to rehabilitate, repair, refurbish, or remodel the building(s) situated on the land, (b) nor have any goods, chattels, machinery, apparatus or equipment have attached to the building(s) thereon, as fixtures, (c) nor have any contracts been let for the furnishing of labor service, materials, machinery, apparatus or equipment which are to be completed subsequent to the date hereof, (d) nor have any notices of lien been received, except as shown on said attached exhibit 4 That the Owner is in sole possession of the Property, and that no other party has possession, or has a right of possession under any tenancy, lease or other agreement, written or oral, except as shown on the attached Exhibit B, and that in connection with any such possessory right, lease or other agreement, there are no rights of first refusal, rights of first offer or options to purchase all or any portion of the Property 5 That the covenants and restrictions, if any, shown in the Commitment have not been violated by the erection of the improvement on the Property or the use of the Property, and there are no known facts which would cause such violation, nor has Owner received any notices of any violations thereof 6 That except as shown on the attached Exhibit C, the Owner is not a "retailer" "commission merchant,' "dealer," or"broker" of"perishable agricultural commodities as defined in 7 USC 449a(4) 7 In order to induce the Company to issue its polices of title insurance with full knowledge that the Company will rely upon the accuracy of the statements made herein, Owner hereby agrees to hold the Company harmless from and indemnify the Company against any and all loss, cost damage or expense of every kinds, including attorneys' fees, which the Company may suffer or incur or become liable for under its said policies directly or indirectly due to its reliance on the accuracy of the foregoing representations or in connection with its enforcement of its rights under this certificate and indemnity B The Owner acknowledges and agrees as follows 1 The Company is unwilling to issue said policy or policies until the closing instrument(s) under which the proposed insured acquires an interest in the Property is/are filed for record in the appropriate recording office(s) (the "Recording Date"), 2 The parties in the transaction have requested the Company to provide a so-called "New York Style Closing" which provides for the unconditional delivery, upon the closing, of the title policies concurrently with the delivery of the instrument(s) between the parties and the passing of consideration therefor, 3 In consideration of the Company issuing its policies without taking exception therein for matters which may arise between the most recent effective date of the Commitment (the "Effective Date") and the Recording Date, known as the "Gap Period," and which matters may constitute and encumbrance, lien or objectionable matter to or may affect said title (collectively, "Objections to Title"), the Owner agrees to promptly defend, remove, bond or otherwise dispose of any Objections to Title which may arise or be filed, as the case may be, against the Property during the Gap Period, and to hold the Company harmless from and indemnify the Company against all expenses costs and reasonable attorneys' fees which may arise out of Owner's failure to so remove, bond or otherwise dispose of any of said Objections to Title Dated I �3f�I 7 [Owner] By&04_L� -— Paul W Foster Mayor ATTEST By• d✓ anne Donaldson City Clerk EXHIBIT A WORK AT PROPERTY (Describe work, or if none, state "NONE") NONE EXHIBIT B PARTIES IN POSSESSION AT PROPERTIES RIGHTS OF FIRST REFUSAL, RIGHTS OF FIRST OFFER OR OPTIONS TO PURCHASE {Attach Rent Roll or list of leases and confirm that there are no ROFRs or ROFOs or Options} There are no ROFRs or ROFOs or Options to Purchase EXHIBIT C PACAIPSA ACT exceptions The Owner is not a 'retailer,' "commission merchant," "dealer," or"broker," of"perishable agricultural commodities as defined in 7 USC 449a(4) M s 3281 E Guasti Road,Suite 440 Ontario,CA 91761 First American Title Insurance Company NATIONAL COMMERCIAL SERVICES PROCEEDS DISBURSEMENT Dated 11/21/2016 City of Redlands, a municipal corporation P 0 Box 3005 Redlands, CA 92373 Order Number NCS-818580-ONT1 Property Address- 1615 Park Avenue, Redlands, CA Buyer/Borrower(s) Balboa Park Properties, LLC Seller(s), City of Redlands, a municipal corporation The undersigned seller(s) or borrower(s) request that the proceeds from the sale or refinance of the above captioned property be sent in the following manner Please select one and complete if necessary 1. _ Pick-up at First American Title Insurance Company National Commercial Services, 3281 E Guasti Road, Suite 440, Ontario, CA 91761 2 _ Mall to the following address- 3 _ Overnight via express mail service to the following address 4 x Wire proceeds to Union Bank, 400 California Street San Francisco, CA 94101 Bank Name &Address 122000496 2740026189 Bank ABA Routing Number Bank Account Number City of Redlands Bank Account Name 5. Other• Seller(s) Page 1 of 2 City of Redlands, a municipal corporation By Name Paul W Foster Title- Mayor Date _( J :� f 1MA7 ATTEST .]Mine Donaldson Ci Clerk tY Page 2of2 1099-S INPUT ComDanv No Office No T Order/Escrow/File Number Actual Closino Date NATLAC 30X Add F change ❑ Delete NCS-818580-ONT1(KS) [1] [2] [3] [4] [5] SUBJECT PROPERTY INFORMA TION Street Address or Bnef Form of L egal Description(for vacant land, use APN) [6] 1615 Park Avenue City(for vacant land use county) State Zip Redlands San Bernardino CA Transaction Data Contract Sales Price No of 1099-S 2 or More 1099-S Buyers Part of Real Contingent Exchange Was (Line 401 of HUD 1 Form) forms required Forms Estate Tax. Show any Transaction Is this a (or will there be) Note If this is an for the sale of If 2 or more 1099-S real estate tax, on a contingent transaction other property or exchange, provide total this property forms are required for residence,charged to wherein gross proceeds services received? dollar value of cash, notes this transaction, record the buyer at settlement cannot be determined and debt relief received by the dollar amount for with certainty at time of this exchanger this seller based on the closing? seller's declaration [7] $2,300,000.00 [8] $ $ F-1 Yes ❑ Yes SELLER INFORMATION-PLEASE PRINT CLEARL Y seller's Name [9] City of Redlands, a municipal corporation STIerS;Forwarding Street Address C A:b n scree 5v 14 `f City state Zip(or country if not USA) R ,7Mds r� 92373 SELLERS SOCIAL SECURITY NUMBER I SELLERS TAX IDENTIFICA TION NUMBER [10] OR 95-6000766 You are required by law to provide your closing agent with your correct Under penalties of perjury,I certify that the number shown above is my Taxpayer Identification Number If you do not provide your closing correct Taxpayer Identification Number agent with your correct Taxpayer Identification Number, you may be [11] subject to civil or criminal penalties imposed by law under the Tax / Reform Act of 1986 under Internal Revenue Code Section 6045(E), 6676, iJ�} I J3 {f-7 6722,6723,and 7203 S—Re`r'S Signature v Date Paul W Foster, Mayor INSTRUCTIONS A) Make sure all data fields and areas indicated by numbers are accurately completed 6) If there is more than one seller in this transaction,each seller must have a separate 1099-S form Inmost cases a husband and wife are considered one seller and only one name and corresponding Social Security Number or Tax Identification Number can appear an this form C) Also, if more than one seller,indicate the total number of 1099-S forms required for the transaction and report the correct dollar value for this seller in area number[8] D) Make sure all seller's information(name,forwarding address,Social Security or Taxpayer Identification Number,and seller's signature)is obtained Missing or incorrect information may be subject to IRS penalty E) Double check all information for completeness and accuracy before submitting for processing. Renroduced by First American Title Insurance 112601 ATf Page 1 ]ear VDonaldson, City Clerk 3281 E Guasti Road,Suite 440 Firsf American Ontario,CA 91761 "= Title Insurance Company NATI0NAL COMMERCIAL SERVICES TO: FIRST AMERICAN TITLE COMPANY ESCROW NO ' NCS-818580-ONTI In order that rents for the property I am conveying may be correctly prorated through escrow, I hereby state that rentals as to amounts and dates to which they are paid, are as follows Unit Tenant Rate per month Date paid Security deposit Option to Right of to Purchase 1st Y or N Refusal: Y or N I - -- NOT APPL-ICABL-E f Unless prior to date of recording I have notified you in writing of some change in tenancy, you are to assume I will collect all rents which fall due according to the foregoing statement prior to close of escrow, and you will prorate the rents accordingly. You will also pay the grantee the above security deposit(if any), charging my account. DATED SELLER SELLER The above rent statement is hereby approved as a basis for rent prorations through this escrow DATED BUYER BUYER Page 1 of 1 ks/01/19/2017 °. FANHD Commercial Property Disclosure Reports Disclosure Report Signature Page F;rsd Disclpsures"a Natural Hazard For SAN BERNARDINO County Property Address 1615 PARK AVE APN 0292-192-19-0000 REDLANDS, SAN BERNARDINO COUNTY, CA 92373 Report Date 11/16/2016 ("Property") Report dumber. 2011791 Natural Hazard Disclosure ("NHD") Statement and Acknowledgment of Receipt DISCLAIMER This NHD Summary (a) is not valid unless delivered with the complete FANHD Disclosure Report which transferee must read and acknowledge before close of escrow,and(b)is subject to the Terms and Conditions contained in that complete Disclosure Report. The transferor and his or her agent(s) or a third-party consultant disclose the following information with the knowledge that even though this is not a warranty prospective transferees may rely on this information in deciding whether and on what terms to purchase the Property Transferor hereby authorizes any agent(s) representing any principal(s)in this action to provide a copy of this statement to any person or entity in connection with any actual or anticipated sale of the Property. The following are representations made by the transferor and his or her agent(s)or a third-party consultant based on their knowledge and maps drawn by the State. This information is a disclosure and is not intended to be part of any contract between the transferee and the transferor THIS REAL PROPERTY LIES WITHIN THE FOLLOWING,HAZARDOUS AREA(S)- A SPECIAL FLOOD HAZARD AREA(Any type Zane"A"or"V")designated by the Federal Emergency Management Agency Yes X No— Do not know and information not available from local jurisdiction_ AN AREA OF POTENTIAL FLOODING shown on a dam failure inundation map pursuant to Section 8584.5 Of the Government Code. Yes— NO X Do not know and information not available from local jurisdiction A VERY HIGH FIRE HAZARD SEVERITY ZONE pursuant to Section 51176 or 51179 of the Government Code The owner of this Property is subject to the maintenance requirements of Section 51182 of the Government Code Yes_ No X A WILDLAND AREA THAT MAY CONTAIN SUBSTANTIAL FOREST FIRE RISK AND HAZARDS pursuant to Section 4125 of the Public Resources Code. The owner of this Property is subject to the maintenance requirements of Section 4291 of the Public Resources Code Additionally it is not the state's responsibility to provide fire protection services to any building or structure located within the wildlands unless the Department of Forestry and Fire Protection has entered into a cooperative agreement with a local agency for those purposes pursuant to Section 4142 of the Public Resources Code. Yes_ No X AN EARTHQUAKE FAULT ZONE pursuant to Section 2622 of the Public Resources Code Yes— No X A SEISMIC HAZARD ZONE pursuant to Section 2696 of the Public Resources Code Yes(Landslide Zone)_ Yes(Liquefaction Zone)_ No_ Map not yet released by state X THESE HAZARDS MAY LIMIT YOUR ABILITY TO DEVELOP THE REAL PROPERTY TO OBTAIN INSURANCE, OR TO RECEIVE ASSISTANCE AFTER A DISASTER THE MAPS ON WHICH THESE DISCLOSURES ARE BASED ESTIMATE WHERE NATURAL HAZARDS EXIST THEY ARE NOT DEFINITIVE INDICATORS OF WHETHER OR NOT A PR PERTY WILL BE AFFECTED BY A NATURAL DISASTER TRANSFEREE(S)AND TRANSFEROR(S)MAY WISH TO OB FESS ND C E H4ZARD�N D THER HAZARDS THAT MAY AFFECT THE PROPERTY coo t Signature of T-hs eror(s) Dat Signature of Transferor(s) Date Signature of Agent Date Signature of Agent Date ❑ Transferor(s)and their agent(s)represent that the information herein is true and correct to the best of their knowledge as of the date signed by the transferor(s) and agent(s) FX Transferor(s)and their agent(s)acknowledge that they have exercised goad faith in the selection of a third-party report provider as required in Civil Code Section 1183 7 and that the representations made in this Natural Hazard Disclosure Statement are based upon information provided by the independent third party disclosure provider as a substituted disclosure pursuant to Civil Code Section 1103.4 Neither transferor(s)nor their agent(s)(1)has independently verified the information contained in this statement and Report or(2)is personally aware of any errors or inaccuracies in the information contained on the statement,This statement was prepared by the provider below Third-Party Disclosure Provider(s)FIRST AMERICAN PROFESSIONAL REAL ESTATE SERVICES INC OPERATING THROUGH ITS FANHD DIVISION Date 16 November2016 Transferee represents that he or she has read and understands this document. Pursuant to Civil Code Section 1103.8, the representations in this Natural Hazard Disclosure Statement do not constitute all of the transferor's or agent's disclosure obligations in this transaction Signature of Transferee(s) Date Signature of Transferee(s) Date TRANSFEREEiSI REPRESENTS ABOVE HEISHE HAS RECEIVED READ AND UNDERSTANDS THE COMPLETE FANHD DISCLOSURE REPORT DELIVERED WITH THIS SUMMARY• A.Commercial Natural Hazard Disclosure Repert,Commercial Tax Report,Commercial Environmental Screening Report. B Additional Property-specific Statutory Disclosures. Former Military Ordnance Site Airport Influence Area, Airport Noise San Francisco Bay Conservation and Development District Jurisdiction(in S.F Bay counties only) C Additional County and City Regulatory Determinations as applicable Airports Avalanche Blow Sand Coastal Zone. Dam/Levee Failure Inundation Debris Flow Erosion Flood Fault Zone Fire,Groundwater, Landslide Liquefaction Methane Gas Mines Naturally Occurring Asbestos Redevelopment Area Right to Farm, Runoff Area Seiche,Seismic Shaking Seismic Ground Failure Slope Stability,Soil Stability,Subsidence TRPA,Tsunami D General advisories. Methamphetamine Contamination, Mold, Radon, Endangered Species Act Abandoned Mines,Oil&Gas Wells,Tsunami Maps(coastal only) Non-residential Building Energy Use. E Government Guides in Combined Booklet with Report Refer to Booklet:Commercial Property Owners Guide to Earthquake Safety Government Guides are also available on the Company's"Electronic Bookshelf at htto:l1wwww.disclesures.c0m1 02016 First American Real Eslate Disclosures,LLC 200 Commerce,Suite 100 Irvine,CA 92602 Phone(800)527-0027 Fax (800)8549625 Page 1 of 1 FANHD Commercial Property Disclosure Reports Disclosure Report Signature Page Fariean For SAN BERNARDINO County Natural HazarHazard Disalosures­ Property Address 1615 PARK AVE APN. 0292-192-19-0000 REDLANDS, SAN BERNARDINO COUNTY, CA 92373 Report Date- 11/16/2016 ("Property') Report Number- 2011791 Natural Hazard Disclosure ("NHD") Statement and Acknowledgment of Receipt DISCLAIMER This NHD Summary (a) is not valid unless delivered with the complete FANHD Disclosure Report which transferee must read and acknowledge before close of escrow and(b)is subject to the Terms and Conditions contained in that complete Disclosure Report. The transferor and his or her agent(s) or a third party consultant disclose the fallowing information with the knowledge that even though this is not a warranty prospective transferees may rely on this information in deciding whether and on what terms to purchase the Property. Transferor hereby authorizes any agent(s) representing any principals)in this action to provide a copy of this statement to any person or entity in connection with any actual or anticipated sale of the Property The following are representations made by the transferor and his or her agents)or a third party consultant based on their knowledge and maps drawn by the State This information is a disclosure and is not intended to be part of any contract between the transferee and the transferor THIS REAL PROPERTY LIES WITHIN THE FOLLOWING HAZARDOUS AREA(5) A SPECIAL FLOOD HAZARD AREA(Any type Zone"A or'V")designated by the Federal Emergency Management Agency Yes X No_ Do not know and information not available from local jurisdiction AN AREA OF POTENTIAL FLOODING shown on a dam failure inundation map pursuant to Section 8589.5 of the Government Code Yes_ No X Do not know and information not available from local jurisdiction_ A VERY HIGH FIRE HAZARD SEVERITY ZONE pursuant to Section 51178 or 51179 of the Government Code. The owner of this Property is subject to the maintenance requirements of Section 51182 of the Government Code Yes_ NoX A WILDLAND AREA THAT MAY CONTAIN SUBSTANTIAL FOREST FIRE RISK AND HAZARDS pursuant to Section 4125 of the Public Resources Code The owner of this Property is subject to the maintenance requirements of Section 4291 of the Public Resources Code Additionally it is not the state's responsibility to provide fire protection services to any building or structure located within the wildlands unless the Department of Forestry and Fire Protection has entered into a cooperative agreement with a local agency for those purposes pursuant to Section 4142 of the Public Resources Code Yes_ No X AN EARTHQUAKE FAULT ZONE pursuant to Section 2622 of the Public Resources Code. Yes— No X A SEISMIC HAZARD ZONE pursuant to Section 2696 of the Public Resources Code. Yes(Landslide Zone)_ Yes(Liquefaction Zone)_ No_ Map not yet released by state X THESE HAZARDS MAY LIMIT YOUR ABILITY TO DEVELOP THE REAL PROPERTY, TO OBTAIN INSURANCE OR TO RECEIVE ASSISTANCE AFTER A DISASTER THE MAPS ON WHICH THESE DISCLOSURES ARE BASED ESTIMATE WHERE NATURAL HAZARDS EXIST THEY ARE NOT DEFINITIVE INDICATORS OF WHETHER OR NOTA OP RTY WILL BE AFFECTED BY A NATURAL.DISASTER TRANSFEREE(S)AND TRANSFEROR(S)MAY WISH TO OBT FESSIOAIL/r�7Vl`E R vi i nude HAZAR SAN OTHER HAZARDS THAT MAY AFFECT THE PROPERTY 11 ¢ , t Si ure of Transferor(s) Ujilte Signature of Transferor(s) Date Signature of Agent Date Signature of Agent Date Transferer(s)and their agents)represent that the information herein is true and correct to the best of their knowledge as of the date signed by the transferor(s) and agents) �X Transferer(s)and their agent(s)acknowledge that they have exercised good faith in the selection of a third-party report provider as required in Civil Code Section 1103 7 and that the representations made in this Natural Hazard Disclosure Statement are based upon information provided by the independent third-party disclosure provider as a substituted disclosure pursuant to Civil Code Section 1103.4 Neither transferor(s)nor their agent(s)(1)has independently verified the information contained in this statement and Report or(2)is personally aware of any errors or inaccuracies in the information contained on the statement This statement was prepared by the provider below Third-Party Disclosure Providers)FIRST AMERICAN PROFESSIONAL REAL ESTATE SERVICES INC OPERATING THROUGH ITS FANHD DIVISION Date 16 November 2016 Transferee represents that he or she has read and understands this document Pursuant to Civil Code Section 1103.6 the representations in this Natural Hazard Disclosure Statement do not constitute all of the transferor's or agent's disclosure obligations in this transaction Signature of Transferee(s) Date Signature of Transferee(s) Date TRANSFEREi REPRESENTS ABOVE HEISHE HAS RECEIVED READ AND UNDERSTANDS THE COMPLETE FANHD DISCLOSURE REPORT DELIVERED WITH THIS SUMMARY- A Commercial Natural Hazard Disclosure Report,Commercial Tax Report,Commercial Environmental Screening Report. B Additional Property-specific Statutory Disclosures: Former Military Ordnance Site,Airport Influence Area, Airport Noise San Francisco Bay Conservation and Development District Jurisdiction(in S.F Bay counties only) C Additional County and City Regulatory Determinations as applicable Airports,Avalanche, Slow$and, Coastal Zane, Dam/Levee Failure Inundation Debris Flow Erosion Flood, Fault Zone Fire Groundwater Landslide, Liquefaction. Methane Gas, Mines, Naturally Occurring Asbestos Redevelopment Area, Right to Farm Runoff Area Seiche,Seismic Shaking,Seismic Ground Failure,Slope Stability Soil Stability Subsidence Ti Tsunami D General advisories Methamphetamine Contamination Mold Radon Endangered Species Act,Abandoned Mines,Oil&Gas Wells,Tsunami Maps(coastal only) Non residential Building Energy Use E.Government Guides in Combined Booklet with Report. Refer to Booklet,Commercial Property Owner's Guide to Earthquake Safety Government Guides are also available on the Company's Electronic Bookshelf'at htto:llwwww.disclosures.coml ©2416- First American Real Estate Disclosures LLC 200 Commerce,Suite 100,Irvine,CA 92602 Phone.(800)527-0027 Fax (800)854-9625 Page 1 of 1 RECORDING REQUESTED BY First American Title Insurance Company National Commercial Services MAIL TAX STATEMENT AND WHEN RECORDED MAIL DOCUMENT TO Balboa Park Properties, LLC P 0 BOX 7583, Redlands, CA 92373 Space Above This Line for Recorder's Use Only A.P.N 0292-192-19 0 000 File No NCS-818580-ONT1 (KS) GRANT DEED The Undersigned Grantor(s)Declare(s) DOCUMENTARY TRANSFER TAX$2,530 00,CITY TRANSFER TAX$0.00, X computed on the consideration or full value of property conveyed,OR computed on the consideration or full value less value of liens and/or encumbrances remaining at time of sale, unincorporated area, (X] City of Redlands,and FOR A VALUABLE CONSIDERATION, receipt of which is hereby acknowledged, City of Redlands,a municipal corporation hereby GRANTS to Balboa Park Properties, LLC, a Nevada limited liability company the following described property in the City of Redlands, County of San Bernardino, State of California, THE WEST 1/2 OF THE NORTHEAST 1/4 OF BLOCK 21 OF THE BARTON RANCH,IN THE COUNTY OF SAN BERNARDINO, STATE OF CALIFORNIA, AS PER PLAT RECORDED IN BOOK 6, PAGE 19 OF MAPS, RECORDS OF SAID COUNTY. EXCEPTING THEREFROM THAT PORTION CONVEYED TO THE SAN BERNARDINO COUNTY FLOOD CONTROL DISTRICT BY DEED RECORDED MAY 17, 1965,IN BOOK 7027, PAGE 758, OFFICIAL RECORDS. Mail Tax Statements To, SAME AS ABOVE --------------- ---------- ------- ----- - ----------------- ------ ------------ ------------------- -------- ------ ----- -------- Grant Deed - continued Date 01/19/2017 A.P.N.. 0292-192-19-0-000 File No NCS-818580-ONT1 (KS) Dated. January 19, 2017 City of Redlands, a municipal corporation By _ Name Caul W Foster Title Mayor ATTEST Jean onaldson, City Clerk Page 2 Grant Deed - continued Date 01/19/2017 A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness,accuracy,or validity of that document STATE OF L � �('l,- n i a- )SS COUNTY OF S On J C;Yl 3f�Yl.t �� I d-� before me, 'I (Q ( X (,� y�5 , Notary Public, personally appeared Pa L-i_ 1 �-O SSC a r-\Cl T e.(A,Yl VLQ,., O{10. �� So f1 who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) Ni /are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/hWtheir authorized capacity(ies), and that by hhsJhWtheir signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct WITNESS my hand and official seal DIANA RAINS Notary Public California Signature Sen Bernardino County a Commission#2175775 My Comm Expires Dec 16.2020 This area for official notarial seal. Page 3 R,CII/ First American Title Insurance Company w National Commercial Services 3281 E Guasti Road,Suite 440 •Ontario CA 91761 Office Phone(909)510-6200 Office Fax:(909)510-6200 Seller's Estimated Settlement Statement File No NCS-818580-ONT1 Escrow Officer Kelly SimoneaulKS Estimated Settlement Date 01/30/2017 Disbursement Date Property 1615 Park Avenue, Redlands CA Buyer Balboa Park Properties, LLC P O Box 7583, Redlands CA 92373 Seller City of Redlands, a municipal corporation P O Box 3005, Redlands CA 92373 Description Seller Charge Seller Credit Consideration Total Consideration -- - 2 300,000 00 Title/Escrow Charges - Closing-Escrow Fee 112 of total fee to First American Title Insurance Company National 1,60000 1 Commercial Services Policy Standard ALTA 2006 Owners to First American Title insurance Company National —3-510-00 I Commercial Services Record Deed 100 0© - - __.__- ___ -______ � C Transfer Tax-County 2,53000 Disbursements Paid - — Miscellaneous Disbursement NHD Report to First American Natural Hazard Disclosure 149 00 Cash(X To)( From)Seller 2,292,111 00 j Totals 2 300 000 00 2,300,000 00 PLEASE NOTE A modification of money-transfer or disbursement instructions can be a red flag for Online Banking Fraud and could be a trap for the unwary Should we knowingly receive such a modification, in the interest of prudence, we may consider it suspect and call a known and trusted phone number to verify its authenticity and accuracy Your awareness and cooperation in taking appropriate steps to prevent fraud is greatly appreciated Page 1 of 2 Print Date 0112512017,2 37 PM Seller's Estimated Settlement Statement Settlement Date. File No NCS-818580-ONT1 Officer Kelly Simoneau/KS SELLER(S) City of Redlands amunicipal corporation ��a By ) W' r ` TIZa'me Paul Foster Title Mayor ATTEST: ,�� Je e Donaldson, City Clerk Page 2 of 2 Print Date 0112512017,2 37 PM