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AGREEMENT FOR PURCHASE AND SALE
AND ESCROW INSTRUCTIONS
INNER
THIS AGREEMENT FOR PURCHASE AND SALE AND
("Agreement"),dated October 19,2004("Effective Date"),is made ESCROW INSTRUCTIONS
Timothy and Grace Phelps ("Buyer") and entered into by and between
and the City arof Redlands, a municipal corporation ("Seller")
(sometimes herein collectively referred to as the "Parties").
REC-- I1TALS
A. Whereas, Seller owns certain real property located at 1329 Barton R
of Redlands and designated as Assessor's Parcel Number 172-481-02 the"Pr oad in the City
( operty") and
B. Whereas, Seller agrees to sell to Buyer and Buyer agrees to purchase
Property, subject to the terms and conditions contained herein; from Seller the
NOW THEREFORE,in consideration of the mutual promises contained herein,the Parties
agree as follows:
AGREEMENT
1• PURCHASE PRICE
The total price for the Property to be paid at Close of Escrow shall be One Hundred Seventy
Two Thousand ($172,000.00)Dollars (the "Purchase Price").
2• TITLE TO PROPERTY
Seller shall,at Close of Escrow,by grant deed convey to Buyergood and
to the Property as evidenced by a standard form C.L.T.A.standard coverage o • marketable i fee title
in an amount equal to the Purchase Price of the Property g policy
Company (the "Title Com P rty issued by Commonwealth Land Title
Pany") showing title vested in Buyer, subject to the exceptions to title
approved by Buyer pursuant to Section 3.1 below.
3• CONDITIONS OF PURCHASE
Buyer's obligation to purchase the Property shall be subject to the s
following conditions, which are for Buyer's benefit only.
In the event contingencies are not satisfied within the specified time limits, atisfaction of the
waive such conditions or terminate this Agreement. ent any of the following
ts,Buyer on, either
may,at its sole option,
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3.1 Approval of Title Promptly after execution of this Agreement by Seller and Bu
Escrow Holder shall deliver to Buyer a current preliminary title report( pTR ) Buyer,
referred to therein covering the Pro e ,including documents
after the date of Title Company's provision of the PTR to Bumerany to Buyer shall have five (5) days
Of title to the Property as disclosed in the PTR and related documents. An disor approval
o the status
title shall be within the reasonable discretion of Buyer and shall be limited toomonetary s of
encumbrances and covenants,conditions,restrictions and easements ofrecord which adversely affect
the Buyer's intended use of the Property. y
on not disaproved
(5) day period shall be deemed approved y Buyer, and shall const utn Ming within the five
hereunder. Any objection to a title exception by Buyer shall be made in writing t Sellerr,andexcept
shall thereafter have three (3) days within which to use reasonable efforts to cure or oto provide
Seller
assurance of the cure of the title defect and cause such item to be removed from the title policy to
be issued at Close of Escrow. The term "reasonable efforts,"as used in this Paragraph 3.1 shall
include any obligation of Seller to expend any money or commence any legal action to correct not
exceptions within the three(3) day period. Seller shall notify Buyer,in writing, of any disapproany
ved
tale exceptions which Seller is unable to cause to be removed prior to or at ClosePP
shall, within five (5) business days thereafter, elect by giving written notice to Seller and Escrow
s row
Holder (i) to terminate this Agreement, or n to waive its disapproval of such exceptions,ow
which case such exceptions shall then be deemed to be permitted exceptions. Bu
yer's failure P , in
such notice shall be deemed an election to terminate this Agreement.p In the event Buyer elects ive to
terminate this Agreement, the Parties shall be relieved from any further liabilities and obligations
under this Agreement.
3.2 Inspections With With the prior written consent of Seller, which consent shall not be
unreasonably withheld,Buyer shall have the right to physically inspect and perform tests,including
environmental investigations, zoning and economic feasibility and suitability studies (hereinafter
collectively"Inspections")on the Property as Buyerdeems necessary. All Inspections shall be do er
at Buyer's sole cost and expense. Within ten (10) days of the completion of such Inspections the
Property shall be returned to its original condition. Buyer shall have the right,in the
e
good faith discretion, to approve or disapprove of the condition of the Property
exercise of its
Inspections within thirty (30) days from the opening of escrow. Andisapproval as disclosed in such
of the Property shall be in writing and given to Seller within such thirty(30)dof the condition
Buyer does not disapprove the condition of the Property within the thirty (30) da e iod, this
condition shall be deemed waived. In the event Buyer disapproves the condition of the prop errty
within the thirty(30) day period, this Agreement shall terminate and the Parties shall be relievedy
from any further liabilities and obligations under this Agreement.
4• ESCROW
4.1 O enin . The purchase and sale of the Property shall be completed throu h an
escrow ("Escrow")to be opened at Guardian Escrow (the "Escrow Holder" g
after the Seller's execution of this Agreement, Seller shall deposit with the Escr w�tHold r one(5) days
fully
executed counterpart of this Agreement,which shall constitute the Purchase Agreement and Escrow
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Instructions along with any additional escrow instructions executed by the Part'
es pursuant to S
4.5 of this Agreement. The date of delivery to Escrow Holder of such fully�exe executed counterpartecti
shall be deemed the opening of escrow("Opening of Escrow")and Escrow Holder shall notify
and Seller in writing of the Opening of Escrow date, the date set for Close y Buyer
acceptance of the escrow instructions. Within two (2) days of the opening of escrow,rBu y er shall
deposit the sum of ten thousand($10,000)dollars with escrow holder(the "Deposit"). The Deposit
shall be non-refundable to Buyer,and released to Seller, on Seller's demand. Should Buyer choose
to proceed with the closing, said funds shall apply to the purchase price.
4.2 Closing Escrow shall close, if at all, on or before November 30, 2004.
4.3 Costs. Except as otherwise expressly provided for herein, Seller shall pay all the
lf of the
usual Escrow costs and charges normally paid by a seller in an escrow closing i
County, including without limitation one-half of the Escrow fee. Buyer shallay
Escrow fee and such other costs and charges normally paid by a Buyern an escrow oclsing in San
Bernardino County. Buyer shall pay the fees to record the new deed.
4.4 Prorations. Current real property taxes,bonds and assessments shall be prorated at
the date of recordation of the deed, on the basis of a thirty(30) day month.
4.5 Additional Documents. Buyer and Seller shall execute such additional Escrow
instructions as Escrow Holder may reasonably require to act as Escrow Holder,but in no event shall
the Escrow instructions increase the rights of one party against the other party hereto or modify the
terms and conditions of this Agreement. Y
4.6 Delivery of Documents Escrow Holder shall prepare the Grant Deed and Buyer
shall deliver the total Purchase Price to Escrow Holder at least one(1)business dayprior to the
of Escrow. Close
5• SELLER'S REPRESENTATIONS, WARRANTIES AND ACKNOWLEDGMENTS
Seller hereby makes the following representations, warranties and acknowledgments and
agrees that such representations,warranties and acknowledgments shall survive the Close ofEscrow.
5.1 Seller has full right, power, and authority to execute this Agreement and to convey
fee simple title to the Property to Buyer as provided herein.
5.2 Seller is not a foreign person under Section 1445 Internal Revenue Code and will
execute a Certificate of Non-foreign status and deposit the same into the Escrow prior to Close of
Escrow.
5.3 This Agreement has been duly approved and executed by Seller and constitutes th
valid and binding Agreement of Seller enforceable against Seller in accordance with its terms. e
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5.4 Seller has initiated an application to change the zoning from Commercial to
Administrative-Professionalp e for the Property, which is tentatively scheduled for first reading on
October 5, 2004. However, nothingin
this Agreement shall obligate Seller to approve such a
change of zoning.
6. BUYER'S REPRESENTATIONS AND WARRANTIES
Buyer hereby makes the following representations, warranties and acknowledgments and
agrees that such representations, warranties and acknowledgments shall survive Close of Escrow.
6.1 Buyer hereby represents and warrants that the person executing this Agreement has
the full authority and power to enter into this Agreement on behalf ofBuyer to purchase the Property
from Seller, and to take all actions required of it by the terms of this Agreement.
6.2 All the documents executed by Buyer which are to be delivered to Seller at Close of
Escrow shall be duly authorized, executed and delivered by Buyer and shall be legal, valid and
binding obligations of Buyer enforceable against Buyer in accordance with their respective terms,
and shall not violate any agreement to which Buyer is a party or to which it is subject.
6.3 That(i)prior to Close of Escrow,Buyer will have had the opportunity to investigate
all physical, land use and economic aspects of the Property and to make all inspections and
investigations of the Property which Buyer deems necessary or desirable to protect its interest in
acquiring the Property, including, without limitation, environmental audits and assessments, toxic
reports, surveys, investigation of land use and development rights, development restrictions and
conditions that are or may be imposed by governmental agencies, soils and geological reports,
engineering and structural tests, insurance contracts, cost to complete studies, governmental
agreements and approvals,and(ii)Seller,nor anyone acting for or on behalf of Seller,has made any
representation,warranty,promise or statement,express or implied,to Buyer,or to anyone acting for
or on behalf of Buyer, concerning the Property or the use thereof Buyer further represents and
warrants that all matters concerning the Property have been or shall be independently verified by
Buyer prior to Close of Escrow, and that Buyer shall purchase the Property on Buyer's own prior
investigations and examination of the Property (or Buyer's election not to do so); AND THAT
BUYER IS PURCHASING THE PROPERTY IN AN "AS IS" PHYSICAL CONDITION
AND IN AN "AS IS" STATE OF REPAIR.
7. NOTICE
Unless otherwise provided herein, any notice, tender, or delivery to be given hereunder by
either party to the other may be effected by personal delivery in writing or by registered or certified
mail, postage prepaid, return receipt requested, and shall be deemed commun
or as of mailing. Mailed notices shall be addressed as set forth below, but each party may change icated upon delivery
its address by written notice in accordance with this Section.
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Buyer: Seller:
Timothy and Grace Phelps
PO Box 7792 City Manager
Redlands, CA 92373 City of Redlands
PO Box 3005
Redlands, CA 92373
8• GENERAL PROVISIONS
8.1 Entire Agreement, This Agreement supersedes any and all prior oral or written
agreements between the parties hereto relating to the purchase and sale of the Property and contains
the entire agreement of the Parties as to the matters covered hereby. No other agreement, statement
or promise made by any party or to any employee, officer or a ent of an
shall be binding, except a subsequent amendment to this Agre rnt ofnt, n party
writinto thisexecAgreement by the
Parties. All obligations of Buyer and Seller under this Agreement and the Escrow shall be joint and
several.
8.2 Time is of the Essence. Time is of the essence of this Agreement and the Escrow
referred to herein.
8.3 Buyer's Performance Close of Escrow and performance of any duty imposed on
Buyer by this Agreement is conditioned on Seller's full performance of all duties imposed on Seller
in this Agreement.
8.4 Seller's Performance. Close of Escrow and performance of any duty imposed on
Seller by this Agreement is conditioned on Buyer's full performance of all duties imposed on Buyer
in this Agreement.
8.5 Counter arts This Agreement maybe executed in any number of counterparts each
of which shall be deemed an original,but all of which,when taken together,shall constitute one and
the same instrument.
8.6 Successors and Assi ns This Agreement shall inure to the benefit of and be binding
on the Parties to this Agreement, their respective heirs, assigns and other successors in interest;
however,no such assignment shall release or relieve Buyer from any obligations or liabilities under
this Agreement.
8.7 Attorneys'Fees In the event any action is commenced to enforce or interpret the
terms or conditions of this Agreement the prevailing party shall, in addition to any costs or other
relief, be entitled to recover its reasonable attorneys' fees.
8.8 Amendment. Any amendment to this Agreement shall be in writing and executed
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by the Parties.
IN WITNESS WHEREOF,the Parties hereto executed this Agreement on the dates set forth
opposite their respective signatures hereto.
BUYER:
By'- Executed this day of_ _, 2004
Tim thy PL 1 at Redlands, California
ByGExecuted thisZ�
day of2004 ra e Phelps at Redlands, California.
SELLER CITY OF REDLANDS
By: Executed this 19 da of October
isan P ppler, Mayor y ----___> 2004
at Redlands, California
ATTEST:
By:
Beatrice Sanchez, Deputy Ci Clerk
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