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without deduction or offset, in lawful money of the United States of America and at such place as Landlord may from time to time designate in writing.
(c) Late Charges. Tenant acknowledges that late payment of rent or other sums due will cause Landlord to incur costs, the exact amount of which will be difficult to ascertain. Accordingly, if any installment of rent or any other sum due form the Tenant is not received by Landlord within five (5) days of the date on which it is due, Tenant shall pay to Landlord as additional rent the lesser of the maximum amount allowed by law or five percent (5%) of such overdue amount. In addition, Tenant shall pay Landlord any attorneys’ fees or notice/process service fees incurred by Landlord by reason of Tenant’s fai lure to pay rent or other charges when due hereunder. In addition, all unpaid amounts shall accrue interest from the date due the lesser of the maximum rate allowed by law or 7
% per annum until paid.
(d ) No Accord and Satisfaction. No payment by Tenant or receipt by Landlord of a lesser amount than any payment of Rent due shall be deemed to be other than on account of the amount due, and no endorsement or statement on any check or any letter accompanying any check or payment of Rent shall be deemed an accord and satisfaction, and Landlord may accept such check or payment without prejudice to Landlord's right to recover the balance of such payment of Rent or to pursue any other remedies available to Landlord. No receipt of money by Landlord from Tenant after the termination of this Lease or Tenant's right of possession of the Premises shall reinstate, continue or extend the Term.
3. Term and Termination.
(a) Term and Renewal. This Lease shall be for a one (1) year term, commencing as of the Effective Date. The Parties may extend the term of this Lease for up five (5) terms of 12 months each, for a total of six (6) years. Tenant shall provide Landlord at least 90 days' notice (but no more
than 180 days) of its intent to seek an extension of the Lease for each extension period. The Parties agree to meet, confer, and memorialize the agreement to extend the lease for each additional extension
period prior to the expiration of the then current term. (b) Termination and Holding Over. Either Party may terminate this Lease for any reason upon 90 days written notice to the other, termination of which shall be effective immediately upon the end of the 90 days' period. Upon termination of this Lease, possession of the Premises, including all structures, building, and/or improvements thereon, shall be surrendered to Landlord immediately.
In the event Tenant holds over beyond the term herein provided with the express or implied consent of the Landlord, such holding over shall be from month to month only, subject to the conditions of this Lease. Such holding over shall not be construed as a renewal of this Lease and shall be at the monthly compensation provided in this Lease.
Such holdover period shall be subject to termination
upon 30 days' notice.
(c) Trade Fixtures and Personal Property. Upon the termination of the Lease, Tenant shall remove all of its trade fixtures, furniture, equipment, and signs on the Premises to the extent they are not permanently affixed, and immediately repair any damage resulting from such removal so as to leave the Premises in the condition required in this section. Tenant may finance its movable fixtures and equipment installed in the Premises, and such financing will not be considered an Assignment, provided it does not confer an interest in the Premises.
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(d ) Ownership of Improvements; Condition on Tenant's Surrender. On the date of termination of this Lease, Tenant shall peaceably surrender and quit the Premises and all improvements broom clean, in good order, condition and repair, reasonable wear and tear excepted only.
At its expense, Tenant shall remove all of its trade fixtures and personal property and repair any damage to the Premises occasioned by removal of these items.
4. Security Deposit. Upon execution of this Lease, Tenant will pay Landlord a Security Deposit in the sum of $19,062.50. The Security Deposit shall not bear interest and will be held by Landlord as security for Tenant's faithful performance of all of Tenant obligations under this Lease.
If Landlord applies all or part of the Security Deposit to the payment of Rent or to any loss or damage to Landlord due to Tenant's default, then within 5 days after Notice, Tenant will deposit sufficient cash with Landlord to restore the Security Deposit to the amount originally deposited. If Tenant performs all of its obligations under this Lease, the Security Deposit or any remaining balance will be returned to Tenant within 15 days of the expiration or earlier termination of this Lease.
5. Possession and Opening Date.
(a) Tenant's Right of Possession. Landlord shall not be obligated to deliver possession of the Premises to Tenant until Landlord has received from Tenant certificates of insurance or evidence of self-insurance as required in this Lease. Commencing on the Effective Date, Tenant shall pay the first installments of Monthly Base Rent, the estimated share of Additional Rent and Taxes
subject to section 2(b), and any other sum of money or charges due hereunder.
(b) Delivery of Possession. Landlord shall be deemed to have delivered possession of the Premises to Tenant upon the Effective Date.
(c) Governmental Approvals. Tenant shall be responsible for achieving all approvals and permits from governmental agencies having jurisdiction over the Premises necessary to conduct Tenant's operations on the Premises.
6. Use of Premises.
(a) General Use. Tenant shall use and occupy the Premises, solely for its customary use as office uses.
(b) Limitations. Notwithstanding the foregoing permitted uses in subsection (a), Tenant shall not cause or permit the Premises to be used in any way that: (i) constitutes a violation of any law, ordinance, or governmental regulation or order regulating the manner of use by Tenant of the Premises (including, without limitation, any law, ordinance, regulation or order relating to
Hazardous Materials), (ii) constitutes a nuisance or waste, or (iii) increases the cost of any insurance relating to the Premises paid by Landlord. Tenant shall obtain, at its sole cost and expense, all governmental permits, licenses and authorizations of whatever nature required by any governmental agencies having jurisdiction over Tenant’s use of the Premises. Further, Tenant, at its sole cost, will comply with all applicable governmental laws and regulations in connection with its operations within the City of Garden Grove.
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(c) Safety. Tenant shall immediately correct any unsafe condition of the Premises, as well as any unsafe practices occurring thereon. Tenant shall cooperate fully with Landlord in the investigation of any injury or death occurring on the Premises, including a prompt report thereof to Landlord's property manager or designee.
(d ) Nuisances and Annoyances. Tenant shall not use or permit the use of the Premises in any manner which creates a nuisance or measurable annoyance to persons outside the Premises except as may
be required by law or necessary or advisable for safety purposes.
7. Taxes .
(a) Real Property Taxes. Should the property interest conveyed by this Lease be subject to real property taxation and/or assessments, subject to section 2(b), Tenant shall pay, before delinquency, all lawful taxes, assessments, fees or charges which may be levied by the State, County, City, or any other tax or assessment-levying body upon the Premises and any improvements thereon. "Taxes" shall include any form of tax or assessment (whether special or general, ordinary or extraordinary, foreseen or unforeseen), license fee, tax or excise on Rent or any interest of Landlord or Tenant (including any legal or equitable interest of Landlord or its beneficiary under a deed of trust, if any) in the Premises or the underlying realty. Taxes for any partial year shall be prorated.
(b) Personal Property Taxes. Tenant shall pay all taxes charged against trade fixtures, furnishings, equipment or any other personal property belonging to Tenant. Tenant shall use commercially reasonable efforts to have personal property taxed separately from the Premises. If any of Tenant’s personal property is taxed with the Premises and paid by Landlord, Tenant shall reimburse Landlord the taxes for the personal property within 15 days after Tenant receives a written statement from Landlord for such personal property taxes, together with reasonable evidence showing the amount of personal property taxes paid by Landlord. (c) Contesting Taxes. Tenant shall have the right to contest any Taxes, at its own cost and in its own name, and Landlord shall not pay any such Taxes; provided, however, that Tenant shall take such steps as may be required to perfect the contest, including payment of the Taxes under protest prior to an appeal of adverse determination of the contest. Upon final determination of any such contest (and if the Taxes have not already been paid under protest), Tenant shall pay the Taxes for which it is responsible hereunder as they are finally determined and all penalties, interest, costs, and expenses which may thereupon be due or have resulted therefrom. If Tenant contests any Taxes and such contest interferes with any proposed sale, financing or refinancing affecting the Premises, whic
h Landlord has either commenced or is about to commence, upon Landlord's written request, Tenant shall either furnish to Landlord security in the amount of such contested Taxes, plus estimated costs and interest,
or a bond of a responsible corporate surety in such amount.
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8. Utilities.
(a) Electrical and Plumbing. Landlord shall provide the physical installation of electrical and plumbing (including landscape irrigation) utilities to the Premises, excluding any service charges for starting service.
(b) Utility Charges. Tenant agrees to pay directly to the appropriate utility company all charges for all utilities, including electric, gas, telephone, cable television, telecommunications, water, sanitary sewer lines, drainage facilities, trash, or any other utilities and other systems and lines exclusively serving the Premises.
It is understood by the Parties that this section shall apply only to the portion of the Premises leased and occupied by Tenant. Tenant shall not be liable for costs/charges associated with property outside the scope of this lease. (c) Waiver of Liability. Regardless of the entity supplying any of the utilities or providing any service referred to in this section, Landlord shall not be liable in damages for any failure or interruption of any utility or service unless such failure was due to the intentional or negligent acts of Landlord or its agents. No failure or interruption of any utility or service shall entitle Tenant to terminate this Lease or discontinue making payments of Rent. (d) Tenant's Nonpayment. If Tenant fails to timely pay any charges referred to in this section, Landlord may pay the charge and Tenant shall reimburse Landlord such amount, as Additional Rent, within
5 days of demand therefor.
9. Improvements and Signage. Except as provided in Exhibit "B" and as may exist on the Premises as of the Effective Date, no structure, sign or other improvement of any kind shall be constructed on the Premises by Tenant, its employees, agents or contractors without the prior written app
roval of Landlord in each case. Approval may be withheld, conditioned or delayed in Landlord’s sole and absolute discretion. No changes, modifications or alterations from approved plans and specifications may be made without Landlord’s prior written approval. No approval by Landlord of any plans or specifications shall constitute (i) approval of architectural or engineering sufficiency or representation, or (ii) warranty by Landlord as to the adequacy or sufficiency of the plans and specifications or the improvements contemplated for Tenant’s use or purpose. Landlord, by approving the plans and specifications, assumes no responsibility or liability for any defect in any improvements constructed on the basis of the plans and specifications. Tenant expressly agrees to comply with all applicable signage ordinances and shall be responsible for the general maintenance and repair of any signage to the Landlord's satisfaction. Landlord has approved the improvements listed in Exhibit "B" attached hereto and made a part hereof.
10. Maintenance and Repairs.
(a) Maintenance. The following requirements shall apply to Tenant upon the effective date of this Lease or occupancy of the Premises by Tenant. (1) In General. Tenant shall, at Tenant's sole expense, keep the Premises, utility installations, and other improvements in good order, condition and repair (whether or not the portion of the Premises requiring repairs, or the means of repairing the same, are reasonably or readily accessible to Tenant, and whether or not the need for such repairs occurs as a result of Tenant's use, any prior use, the elements or the age of such portion of DocuSign Envelope ID: D577DEE2-B6E9-4E6F-9902-E9DA57544C6B
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the Premises), including, but not limited to, all equipment or facilities, such as pluming, HVAC equipment, electrical, lighting facilities, boilers, pressure vessels, fixtures, interior walls, interior surfaces of exterior walls, ceilings, floors, windows, doors, plate glass, and skylights but excluding any items which are the responsibility of Landlord pursuant to subdivision (c) below. Tenant, in keeping the Premises in good order, condition and repair, shall exercise and perform good maintenance practices, specially including the procurement and maintenance of the service contracts required by subdivision (a)(2) below. Tenant's obligations shall include restorations, replacements or renewals when necessary to keep the Premises and all improvements thereon or a part thereof in good order, condition and state of repair.
All replacements shall be of a quality equal to or exceeding that of the original. (2) Service Contracts. Tenant shall, at Tenant's sole expense, procure and maintain contracts, with copies to Landlord, in customary form and substance for, and with li
censed contractors specializing and experienced in the maintenance of the HVAC equipment. Tenant shall provide Landlord copies of work performed by said contractors upon demand. Landlord retains the right, upon failure of Tenant, after 15 days' notice and demand to contract with a contractor as required herein, to procure and maintain any or all of such service contracts, and Tenant shall reimburse Landlord, upon demand, for the cost thereof.
(3) Failure to Perform. If Tenant fails to perform Tenant's obligations under this section, Landlord may, but shall not be obligated to, enter upon the Premises after 10 days' prior written notice to Tenant (except in the case of emergency, in which case no notice shall be required), and perform such obligations on Tenant's behalf, and put the Premises in good order, condition and repair, without liability to Tenant for any loss that may accrue to Tenant's Business as a result,
and Tenant shall promptly pay to Landlord a sum equal to 115% of the cost thereof.
(b) Damage. Tenant shall be responsible for any damage done in or to the Premises caused by Tenant or its employees, agents, contractors, customers or invitees, or any burglar, vandal, or unauthorized entrant.
(c) Capital Repairs and Improvements. Except for improvements to the Premises made by or on behalf of Tenant for Tenant's use of the Premises, or damages caused by Tenant pursuant to subdivision (b) above, which will be the responsibility of Tenant, should the need for capital repairs or improvements to the Premises arise during the Lease term (including, without limitation (i) the structural components of the Building consisting only of the foundation and members supporting the roof, and (ii) utility lines outside the boundaries of the Building), such repairs or improvements shall be made by Landlord. Tenant shall give Landlord written notice of any repair required to be made by Landlord. Tenant hereby waives and releases any right it may have to make repairs at Landlord's expense under Section 1941 and 1942 of the California Civil Code, or under any similar law, statute or ordinance.
11. Landlord's Right of Entry. Landlord or its authorized representatives may enter the Premises following at least 72 hours' notice to Tenant during Tenant's regular business hours (except in a case of emergency) to: (a) inspect the Premises; (b) perform any obligation or exercise any right or remedy of Landlord under this Lease; (c) make repairs, alterations, improvements or additions to DocuSign Envelope ID: D577DEE2-B6E9-4E6F-9902-E9DA57544C6B
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the leased Premises or to other portions of the Premises; (d) perform work necessary to comply with laws, ordinances, rules or regulations of any public authority or of any insurance underwriter; and (e) perform work that Landlord deems necessary to prevent waste or deterioration of the Premises should Tenant fail to promptly commence and complete such repairs within 15 days after Notice.
In exercising its right of entry provided for herein, Landlord and its contractors shall minimize any alteration or
disruption to Tenant's use of the Premises.
12. Liens. Tenant shall not permit to be placed against the Premises, or any other part of the Premises, any mechanics’, materialmen’s, contractors’, subcontractors’ or other liens. Tenant shall indemnify, defend (with counsel acceptable to Landlord) and hold Landlord harmless from all liability for any and all liens, claims and demands, together with the costs of defense and reasonable attorneys’ fees related to same. Landlord reserves the right, at any time and from time to time, to post and maintain on the Premises, any portion thereof or on the improvements on the Premises any notices of non-responsibility or other notice as may be desirable to protect Landlord against liability.
In addition to and not in limitation of Landlord’s other rights and remedies under this Lease, should Tenant fail, within 15
days of a written request from Landlord, to discharge any lien or claim related to Tenant’s use of the Premises or the Premises, or to indemnify, hold harmless and defend Landlord from and against any loss, damage, injury, liability or claim arising out of Tenant’s use of the Premises as provided above, then Landlord, at its option, may elect to pay any lien, claim, loss, demand, injury, liability or damages, or settle or discharge any action or satisfy any judgment and all costs, expenses and attorneys’ fees incurred in doing so shall be paid to Landlord by Tenant upon written demand, together with interest thereon at the rate of 7% per annum (but in no event more than the maximum interest rate permitted by law) from the date incurred or paid through and including the date of payment.
13. Indemnity . As a material part of the consideration to Landlord, Tenant shall pay for, defend (with an attorney approved by Landlord), indemnify, and hold Landlord and its elected and appointed officials, officers, employees, representatives and agents (together "Indemnitees") harmless from any real or alleged damage or injury and from all claims, judgments, liabilities, penalties, costs and expenses, including attorneys' fees and costs (collectively, "Costs"), in any way connected to Tenant's (or anyone acting directly or indirectly by or through Tenant) use or operation on
the Premises, or any repairs, alterations or improvements which Tenant may make or cause to be made on the Premises, or by any breach of this Lease by Tenant, or by any existing or future condition, defect, matter or thing or about the Premises or any part thereof or any equipment or appurtenance therein and any loss or interruption of business or loss of Rent income resulting from any of the foregoing; provided, however, Tenant shall not be liable for Costs to the extent such damage or injury is ultimately determined to be caused by the negligence or misconduct of Landlord.
Notwithstanding the foregoing, Tenant shall in all cases accept any tender of defense of any action or proceeding in which any of the Indemnitees is or are named or made a party and shall, notwithstanding any allegations of negligence or misconduct on the part of any of the Indemnitees, defend the Indemnitees as provided herein until a final determination of negligence or misconduct is made. Costs shall also include all of Indemnitees' reasonable attorneys' fees, litigation costs, investigation costs and court costs and all other costs, expenses and liabilities incurred by any of the Indemnitees or their counsel(s) from the first Notice that any claim or demand is to be made or may be made. Notwithstanding any other provision hereof, Tenant's obligations under this section shall survive the termination of this Lease.
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14. Insurance.
(a) Commercial General Liability. Tenant, at its sole cost and expense, shall, during the entire Term, any extension and holdover period, keep in full force and effect a policy or policies of c
ommercial general liability insurance and property damage insurance with respect to the Premises and the operations by Tenant in which the combined single limit of liability shall be not less than $
2,000,000. Tenant shall also maintain a standard form all-risk policy covering fire and extended coverage, vandalism, malicious mischief, sprinkler leakage and other perils of direct physical loss or damage insuring the personal property, trade fixtures and equipment of Tenant. Said policies shall name Landlord as additional insured and contain a clause that the insurer may not cancel or change the insurance coverage limits without first giving Landlord 30 days’ prio r written notice, except cancellation for nonpayment of premium, in which case only 10 days’ prior written notice shall be required. Tenant’s commercial general liability insurance shall include a contractual liability endorsement insuring performance of all indemnities of Tenant under this Lease and a cross-liability endorsement to the extent insurable. Said insurance policy shall be with an insurance company or companies with general policy holders’ rating of not less than “A-VIII” as rated in the most current available Best’s Key Rating Guide and which are qualified to do business in the state in which the Premises are located. Tenant may satisfy this insurance requirement through a program of self-insurance.
(b) Risk of Loss. Landlord shall not be liable for injury to any person or for any damage to personal property sustained by Tenant or others that are caused by any defects in said Premises or the Premises, or any service facilities or due to the happening of accident, including any damage caused by water, wind storm, or by any gas, steam, electrical wiring, sprinkler system, plumbing, heating or conditioning apparatus; theft; or acts or omissions of co-tenants or other occupants of the Premises, or hereafter occurring therein or due to any part or appurtenance thereof, including any and all furniture, fixtures, and equipment of Tenant becoming out of repair, or from any act or omission of Tenant.
(c) Waiver of Subrogation. Tenant hereby releases Landlord from liability and waives all right of recovery against Landlord for any loss in or around the Premises from perils insured against under its fire or liability insurance contracts, including any all risk endorsements thereof, whether due to negligence or any other cause, provided that this section shall be inapplicable if it would have the effect, but only to the extent it would have the effect, of invalidating any insurance coverage of Landlord or Tenant. Nothing herein shall relieve Tenant of its obligation to request and procure, to the extent available on a commercially reasonable basis, the necessary endorsements required to validly waive subrogation in accordance with this section. Tenant shall, at the request of Landlord, execute and deliver to Landlord a Waiver of Subrogation in the form and content as reasonably required by Landlord’s insurance carrier. To the extent Tenant fails to maintain the insurance required under the terms of this Lease, such failure shall be a defense to any claim asserted by Tenant against Landlord by reason of any loss sustained by Tenant due to circumstances that would have been covered had such required insurance been maintained. (d) Certificate of Insurance. A certificate issued by the insurance carrier for each policy of insurance required to be maintained by Tenant under the provisions of this Lease shall be delivered to Landlord upon or before the delivery of the Premises to Tenant for any purpose. Each DocuSign Envelope ID: D577DEE2-B6E9-4E6F-9902-E9DA57544C6B
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of said certificates of insurance and each such policy of insurance required to be maintained by Tenant hereunder shall expressly evidence insurance coverage as required by this Lease.
15. Destruction.
(a) Non-Termination and Non-Abatement. Except as expressly provided in subsection (b), no destruction or damage to the Premises or any improvements located thereon by fire, windstorm or other casualty, whether insured or uninsured, shall entitle Tenant to terminate this Lease or to an abatement of Rent hereunder; provided, however, that both Landlord and Tenant each reserve rights to terminate this Lease upon 30 days' notice as provided herein.
(b) Repair of Damage. If the leased Premises is/are totally destroyed or damaged or rendered wholly untenantable by fire or other casualty, then Landlord and Tenant shall each have the right to terminate this Lease by giving Notice to the other Party within 30 days after the date of destruction. Upon termination of the Lease pursuant to this section, all insurance proceeds relating to the leased Premises shall be paid to Landlord (exclusive of Tenant coverage for personal/business property and/or personal injury). If Tenant does not terminate the Lease within 30 days from the expiration of such 30-day period, Tenant shall pay Rent unabated and all insurance proceeds shall be paid to Tenant. If the leased Premises is partially damaged or rendered partially untenantable by fire or other casualty, Tenant shall, within 30 days from the date of such destruction, begin the repair or replacement of the portion of the leased Premises affected; provided, however, that both Landlord and Tenant each reserve rights to terminate this Lease upon 30 days' notice as provided herein.
16. Default and Remedies. Should Tenant be in default with respect to any monetary obligation pursuant to the terms of this Lease for a period of 15 days, or should Tenant vacate or abandon the Premises, then Landlord may treat any such event as a material breach of this Lease and in addition to any or all other rights or remedies of Landlord by law provided, should Tenant be in default with respect to any other obligation contained in this Lease, then Landlord may request by written notice that Tenant cure the breach within 15 days. If Tenant does not cure the breach
within 15 days, then Landlord may terminate this Lease. Landlord shall have the right, at Landlord’s option, without further notice or demand of any kind to Tenant or any other person to declare the Lease terminated and to re- enter and take possession of the Premises and remove all persons therefrom. Should Landlord elect to terminate this Lease pursuant to th is section, Landlord may recover from Tenant all damages caused as a result of Tenant’s default.
17. Waiver. Any waiver by Landlord of any default or breach of any covenant, condition, term, and agreement contained in this Lease, shall not be construed to be a waiver of any subsequent or other default or breach, nor shall failure by Landlord to require exact, full, and complete compliance with any of the covenants, conditions, terms, or agreements contained in this Lease be construed as changing the terms of this Lease in any manner or preventing Landlord from enforcing the full provisions hereof. No delay, failure, omission of Landlord to exercise any right, power, privilege, or option arising from any default or breach, nor any subsequent acceptance of payment then or thereafter by Landlord, shall impair any such right, power, privilege, or option or be construed as a waiver of or acquiescence in such default or breach, or as a relinquishment of any right. The rights, powers, options, privileges, and remedies available to Landlord under this Lease shall be cumulative.
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18. Attorneys’ Fees. Should either party to this Lease have to resort to litigation to enforce any provision of this Lease, the prevailing party shall be entitled to its attorneys’ fees and reasonable costs incurred in litigating any dispute.
19. Inspection. Landlord and its representatives, employees, agents or independent contractors may enter and inspect the Premises or any portion of the Premises or any improvements on the Premises at any time during business hours and at other times after Landlord has provided Tenant with 72 hours advanced notice to show the Premises to potential buyers, investors or tenants or other parties, inspect the Premises, make repairs or replacements, or for any other purpose Landlord reasonably deems necessary. All visitors shall be accompanied by a Landlord representative and shall provide Tenant with identification and the purpose of the visit/inspection upon demand.
20. Prohibition on Assignment and Subletting. Tenant may not assign, sublet or otherwise transfer its interest under this Lease without Landlord’s p rior written consent, which consent may be withheld, conditioned or delayed in Landlord’s sole and absolute discretion. Any attempted assignment, sublet or transfer made in violation of this provision shall be void.
21. Notices. All notices, demands and requests which may be given or which are required to be given by any party to this Agreement, and any exercise of a right of termination provided by this Agreement, shall be in writing and shall be deemed effective either: (1) on the date personally delivered to the address below prior to 5:00 p.m. (Pacific Standard Time), as evidenced by written receipt therefor, whether or not actually received by the person to whom addressed; (2) on the third (3rd) business day after being sent, by certified or registered mail, return receipt requested, addressed to the intended recipient at the address specified below; (3) on the first (1st) business day after being deposited into the custody of a nationally recognized overnight delivery service (i.e., FedEx, UPS, or DHL) addressed to such party at the address specified below; or (4) on the business day sent via facsimile transmission to the facsimile numbers below, as evidenced by a printed confirmation of the successful electronic transmission of the message prior to 2:00 p.m. (Pacific Standard Time), or otherwise delivery shall be considered to be on the following business day. For purposes of this section, the addresses of the parties for all notices are as follows:
To Landlord : KJ Investments Group LLC
Attn.: Chae Hong Chung
3440 Wilshire Blvd., Ste. 1000
Los Angeles, CA 90010
Tel. _______________
To Tenant: City of Garden Grove
Attn.: Lisa Kim, Assist. City Manager
11222 Acacia Parkway
Garden Grove, CA 92840
Tel. (714) 741
-5148
22. No Principal/Agent Relationship and No Third Party Beneficiary. Nothing contained in this Lease shall be construed as creating the relationship of principal and agent or of partnership or joint venture between Landlord and Tenant, nor shall it be construed to benefit any third party.
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23. Option to Purchase. Landlord hereby grant to Tenant the exclusive right to purchase the Property over which the Premises are located at a price and under the terms and conditions set forth in Exhibit C. This option will commence on the Effective Day and will remain in effect until 5:00 p.m., December 1, 2023. This option is granted in consideration of Tenant’s lease of the Premises, which was a material consideration to enter into this Lease Agreement. Furthermore, should Tenant exercise this option within one year of the Effective Date, then 40 % of the Rent shall be credited to
the purchase price of the Property. If Tenant fails to exercise this option in accordance with its terms and within the option period or any extension of it, then this option and the rights of Tenant will automatically and immediately terminate without notice. Thereafter, Tenant must properly execute, acknowledge, and deliver to Landlord within 45 days of a request therefor, a release, quitclaim deed, or any other document required by Landlord or a title insurance company to verify the termination of this option.
Tenant must not assign this option. In the event an attempted assignment is made, in violation of this provision, then Tenant’s rights under this option to purchase will automatically terminate without notice. This option will be binding on and inure to the benefit of the parties to this Lease Agreement and their heirs, personal representatives, and successors.
24. Authority to Enter Into Agreement. Each Party to this Lease represents and warrants that its respective signatory has the authority to enter into this Lease and to bind it to the terms of this Lease.
25. Applicable Law and Venue. This Lease shall be construed and enforced in accordance with, and governed by, the laws of the State of California. The parties consent to the jurisdiction of the California courts with venue in Orange County.
26. Counterparts and Facsimiles. This Lease may be executed in any number of counterparts, each of which shall be deemed an original and all of which shall constitute one and the same instrument. Any facsimile of any original document shall be treated as an original document. The Party submitting any facsimile must also submit a copy of the original to the other Party within a reasonable time after the transmission of the facsimile.
27. Miscellaneous.
(a) The headings of this Lease are for purposes of reference only and shall not limit or define the meaning of any provision.
(b) The above Recitals are an integral part of this Lease and made part hereof.
(c) If any provision of this Lease or its application is found to be invalid or unenforceable, such determination shall not affect the other provisions of this Lease and they shall remain valid and enforceable.
(d) Time is of the essence in all provisions of this Lease.
28. Complete Agreement . This Lease constitutes the entire agreement between Landlord and Tenant pertaining to the subject matter of this Lease and supersedes all prior and contemporaneous agreements, representations and understandings of Landlord and Tenant, oral or written.
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29. Brokers. Curtis Lighter and Liz Nguyen with Lightner Realty a re the sole brokers in connection with this Lease representing solely the Landlord, and Landlord shall be solely responsible for the payment of any compensation therefor. There have been no other brokers, finders or agents involved in this Lease, and each party agrees to hold the other harmless from the failure to pay any other broker, finder or agent making a claim for compensation, commission or charges with respect to this Lease and/or the negotiation hereof.
30. Modification . No supplement, modification , amendment or change in any terms of this Lease shall be binding on the Parties unless in writing and executed by Tenant and Landlord.
[SIGNATURES ON FOLLOWING PAGE]
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IN WITNESS WHEREOF, Landlord and Tenant have executed this instrument as of the dates below stated.
LANDLORD
KJ Investment Group, LLC
a California limited liability company
By:
Its:
Dated:
By:
Its:
Dated:
TENANT
CITY OF GARDEN GROVE
a California municipal corporation
By:
Its: City Manager
Dated:
Attest:
By:
Its: City Clerk
Dated:
Approved as to form:
City Attorney
DocuSign Envelope ID: D577DEE2-B6E9-4E6F-9902-E9DA57544C6B 5/11/2022
Jay Chung
5/11/2022
5/11/2022
Scott Stiles
5/11/2022
14 1672809.2
EXHIBIT "A"
Landlord Repair Responsibilities
Landlord agrees to complete the following one-time repair/maintenance items prior to the Tenant taking possession of the Premises:
All electrical facilities serving the Premises, inside and outside the Building, including lighting to code and operational.
All plumbing serving the Premises, inside and outside the Building (including landscape irrigation) to code and operational.
Removal of any condition that would preclude the occupancy of the leased Premises pursuant to any Federal, State, or local law, including ADA compliance.
The leased Premises shall be delivered by Landlord broom clean.
Landlord and Tenant shall conduct a walkthrough of the Premises.
Landlord consents to Tenant obtaining copies of architectural drawings, if any, at Tenant's cost, for any of the work performed to the Premises in connection with Landlord's Repair Responsibilities pursuant to the Lease.
DocuSign Envelope ID: D577DEE2-B6E9-4E6F-9902-E9DA57544C6B
15 1672809.2
EXHIBIT "B"
Improvements by Tenant Approved by Landlord
Landlord has approved the following improvements by Tenant, which do not require further approval by Landlord provided that they are constructed, installed, or reconstructed and maintained according to applicable State and local codes and regulations, if any.
Installation of video and alarm monitoring.
Internal Tenant improvements.
DocuSign Envelope ID: D577DEE2-B6E9-4E6F-9902-E9DA57544C6B
16 1672809.2
EXHIBIT “C”
Instructions for Tenant’s Exercise of Option
In the event that Tenant wishes to exercise the option pursuant to Section 23 of the Lease, the Parties agree to proceed as follows:
1. Tenant shall notify Landlord in writing at the address in Section 21 of the Lease of Tenant’s decision to exercise the option.
2. W ithin 15 business days of Tenant’s notice to Landlord, the Parties will negotiate a mutually acceptable price and terms for the purchase of the Property memorialized in a purchase and sale agreement with escrow instructions.
DocuSign Envelope ID: D577DEE2-B6E9-4E6F-9902-E9DA57544C6B
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DISCLOSURE REGARDING
REAL ESTATE AGENCY RELATIONSHIP
{As required by the Civil Code)
(C.A.R. Form AD, Revised 12/21)
D (If checked) This form is being provided In connection with a transaction for a leasehold interest exceeding one year as per Civil Code section 2079.130), (k}, and (I).
When you enter into a discussion with a real estate agent regarding a real estate transact!on, you should from the outset understand what type of agency relationship or representation you wish to have with the agent in the transaction.
SELLER'S AGENT
A Seller's agent under a listing agreement with the Seller acts as the agent for the Seller only. A Seller's agent or a subagenl of that agent has the following affirmative obligations:
To the Seller: A Fiduciary duty of utmost care, integrity, honesty and loyalty in dealings with the Seller.
To the Buyer and the Seller:
(a) Diligent exercise of reasonable skill and care in performance of the agent's duties. (b) A duty of honest and fair dealing and good faith.
(c) A duty to disclose all facts known lo the agent materially affecting the value or desirability of the property that are not known to, or within the diligent attention and observation of, the parties. An agent is not obligated to reveal to either party any confidential information obtained from the other party that does not involve the affirmative duties set forth above.
BUYER'S AGENT
A Buyer's agent can, with a Buyer's consent, agree to act as agent for the Buyer only. In these situations, the agent is not the Seller's agent, even if by agreement the agent may receive compensation for services rendered, either in full or in part from the Seller. An agent acting only for a Buyer has the following affirmative obligations:
To the Buyer: A fiduciary duty of utmost care, integrity, honesty and loyalty in dealings with the Buyer.
To the Buyer and the Seller:
(a) Diligent exercise of reasonable skill and care in performance of the agent's duties. (b) A duty of honest and fair dealing and good faith.
(c) A duty to disclose all facts known to the agent materially affecting the value or desirability of the property that are not known to, or within the diligent attention and observation of, the parties. An agent is not obligated to reveal to either party any confidential information obtained from the other party that does not involve the affirmative duties set forth above.
AGENT REPRESENTING BOTH SELLER AND BUYER
A real estate agent, either acting directly or through one or more salespersons and broker associates, can legally be the agent of both the Seller and the Buyer in a transaction, but only with the knowledge and consent of both the Seller and the Buyer.
In a dual agency situation, the agent has the follqwing affirmative obligations to both the Seller and the Buyer:
(a) A fiduciary duty of utmost care, integrity, honesty and loyalty in the dealings wrth either the Seller or the Buyer. (b) other duties to the Seller and the Buyer as stated above in their respective sections.
In representing both Seller and Buyer, a dual agent may not, without the express permission of the respective party, disclose to the other party confidential information, including, but not limited to, facts relating to either the Buyer's or Seller's financial position, motivations, bargaining position, or other personal information that may impact price, including the Seller's willingness to accept a price less than the listing price or the Buyer's willingness to pay a price greater than the price offered.
SELLER AND BUYER RESPONSIBILITIES
Either the purchase agreement or a separate document will contain a confirmation of which agent is representing you and whether that agent is representing you exclusively in the transaction or acting as a dual agent. Please pay attention to that confirmation to make sure it accurately reflects your understanding of your agent's role.
The above duties of the agent in a real estate transaction do not relieve a Seller or Buyer from the responsibility to protect his or her own interests. You should carefully read all agreements to assure that they adequately express your understanding of the transaction. A real estate agent is a person qualified to advise about real estate. If legal or tax advice is desired, consult a competent professional.
If you are a Buyer, you have the duty to exercise reasonable care to protect yourself, including as to those facts about the property which are known to you or within your diligent attention and observation.
Both Sellers and Buyers should strongly consider obtaining tax advice from a competent professional because the federal and state tax consequences of a transaction can be complex and subject to change.
Throughout your real property transaction you may receive more than one disclosure form, depending upon the number of agents assisting in the transaction. The law requires each agent with whom you have more than a casual relationship to present you with this disclosure form. You should read its contents each time it is presented to you, considering the relationship between you and the real estate agent in your specific transaction. This disclosure form includes the provisions of Sections 2079.13 to 2079.24, inclusive, of the Civil Code set forth on page 2. Read it carefully. I/WE ACKNOWLEDGE RECEIPT OF A COPY OF THIS DISCLOSURE AND THE PORTIONS OF THE CIVIL CODE PRINTED ON THE SECOND PAGE.
D Buyer D Seller D Landlord D Tenant City of Garden Grove Date _____ _ D Buyer D Seller□ LandlordOTenant ______________________ Date _____ _ Agent ________________________________ DRE Lie.# _______ _ Real Estate Broker (Firm}
By _______ ,-,--,-------------------DRE Lie.# _______ Date ______ _ (Salesperson or Broker-Associate, if any)
© 2021. California Association or REALTORS®, l~c.
AD REVISED 12/21 (PAGE 1 OF 2)
DISCLOSURE REGARDING REAL ESTATE AGENCY RELATIONSHIP AD PAGE 1 OF 2 :\hvof'fl lnc...1900 S. :\:orfoUt Sr. So Matro, CA t.,,40J Phone: (7U).IJ?3-06!5 F~x F.Ji,.b<th NEU!'en Producedwllh Lone WolfTransacilons (zlpFonn Edllion) 717 N flarwood SI, Suite 2200. Dallas, TX 75201 www lwglf com
CIVIL CODE SECTIONS 2079.13-2079.24 (2079.16 APPEARS ON THE FRONT) 2079.13. As used in Sections 2079. 7 and 2079.14 to 2079.24, inclusive, lhe following lenns have the following meanings:
(a) • Agent" means a person acting under provisions of TIiie 9 (commencing with Section 2295) in a real property transaction, and includes a person who is licensed as a real estate broker under Chapter 3 (commencing with SecUon 10130) of Part 1 of Division 4 of the Business and Professions Code, and under whose license a listing is eKecuteo or an offer to purchase is obtained. The agent in the real property transaction bears responsibility for that agent's salespersons or tiroker associates who perform as agents of the agent. When a salesperson or broker associate owes a duty to any principal, or to any buyer or seller who is not a principal, In a real properly transaction, that duty Is equivalent to the duty owed to that party by the broker for whom the salesperson or broker associate functions. (b) "Buyer" means a transferee in a real property transaction, and includes a person who executes an offer to purchase real property from a seller through an agent, or wtio seeks the services of an agent In more than a casual. transitory, or preliminary manner, with the object of entering into a real properly transaction. "Buyer" includes vendee or lessee of real property. (c) "Commercial real property" means all real property in the state, except (1) single-family residenUal real property, {2) dwelling units made subject to Chapter 2 (commencing with Section 1940) of Title 5, (3) a mobilehome, as defined in Section 798,3, (4) vacant land, or (5) a recreational vehicle, as defined in Section 799.29. (d) "Dual agent'' means an agent acting, either direcUy or through a salesperson or broker associate, as agent for both the seller and the buyer in a real property transaction. (e) "Listing agreement" means a written contract between a seller of real property and an agent, by which the agent has been authorized to sell the real property or lo find or obtain a buyer, including rendering other services for which a real estate license is required to the seller pursuant to the terms of the agreement. (f) ·seller's agent" means a person who has obtained a listing of real property to act as an agent for compensation. (g) "Listing price" is the amount expressed in dollars specified in lhe listing for which the seller Is willing to sell the real property through the seller's agent. (h) "Offering price· is the amount expressed in dollars specified in an offer to purcl1ase for which the buyer is willing to buy the real properly. (I) "Offer to purchase" means a written contract executed by a buyer acting through a buyer's agent thal becomes the contract for the sale of the real property upon acceptance by the seller. OJ "Real property" means any estate specified by subdivision (1) or {2) of Section 761 in property, and includes (1) single-family residential properly, (2) multiunit residential property with more than four dwelling un~s. (3) commercial real property, (4) vacant land, (5) a ground lease coupled with improvements, or (6) a manufactured home as defined in Section 1B007 of the Health and Safety Code, or a mobilehome as defined in Section 18008 of the Health and Safety Code, when offered for sale or sold through an agent pursuant lo the authority contained in Section 10131.6 of the Business and Professions Code. (k) "Real properly transaction" means a transaction for the sale of real property in which an agent is retained by a buyer, seller, or both a buyer and seller lo act in that transaction, and includes a listing or an offer lo purchase. (I) "Sell," "sale,' or "sold' refers to a transaction for the transfer of real property from lhe sailer to the buyer and includes exchanges of real property between the seller and tJuyer, transactions for the creation of a real property sales contract within the meaning of Section 2985, and transactions for the creation of a leasehold exceeding one year's duration. (m) "Seller" means the transferor in a real property transaction and includes an owner who lists real property with an agent, whether or not a transfer results, or who receives an offer to purchase real prope~ of which he or she is the owner from an agent on behalf of another. "Seller'' includes both a vendor and a lessor of real properly. (n) "Buyer's agent means an agent who represents a buyer in a real property transacUon. 2079.14. A seller's agent and buyer's agent shall provide the seller and buyer in a real property transaction with a copy of the disclosure fonn specified in Section 2079.16, and shall obtain a signed acknowledgment of receipt from that seller and buyer, except as provided in Section 2079.15, as follows: (a) The seller's agenl if any. shall provide the disclosure form to the seller prior to entering into the listing agreement. (b) The buyer's agent shall provide the disclosure form lo the buyer as soon as practicable prior to execution of the buyer's offer to purchase. If the offer to purchase is not prepared by the buyer's agent, the buyer's agent shall present the disclosure fonn lo the buyer not later than the next business day after receiving the offer to purchase from the buyer.
2079.15. In any circumstance in which the seller or buyer refuses to sign an acknowledgment of receipt pursuant to Section 2079.14, the agent shall set forth, sign, and date a written declaration of the facts of the refusal. 2079.16 Reproduced on Page 1 of this AD fonn.
2079.17(a) As soon as practlcatile, the buyer's agent shall disclose to the buyer and seller whether the agent is acting in the real property transaction as the tiuyer's agent, or as a dual agent representing both the buyer and the seller. This relationship shall be confirmed in the contract to purchase and sell real properly or in a separate writing executed or acknowledged by the seller, the buyer, and the buyer's agent prior to or coincident with execution of that contract by the buyer and the seller, respectively. (b) As soon as practicable, the seller's agent shall disclose to the seller whether the seller's agent is acting in the real property transaction as the seller's agent, or as a dual agent representing both the buyer and seller. This relationship shall be confirmed in the contract to purchase and sell real property or In a separate writing executed or acknowledged by the seller and the seller's agent prior to or coincident with the execution of that contract by the seller.
CONFIRMATION: (c) The confirmation required by subdivisions {a) and (b) shall be in the following form:
Seller's Brokerage Firm DO NOT COMPLETE. SAMPLE ONLY License Number _____ _ Is the broker of (check one): LJ the seller; or LJ both the buyer and seller. (dual agent) Seller's Agent DO NOT MPLETE. SAMPLE ONLY License Number _____ _ Is (check one): the Seller's Agent. (salesperson or broker associate) both the Buyer's and Seller's AgenL (dual agent) Buyer's Brokerage Finn DO NOT COMPLETE. SAMPLE ONLY License Number Is the broker of (check one): LJ the buyer; or LJ both the buyer and seller. (dual agent) ------ Buyer's Agent DO NOT COMPLETE. SAMPLE ONLY License Number _____ _ Is (check one): the Buyer's Agent. (salesperson or broker associate) both the Buyer's and Seller's Agent. (dual agent) (d) The disclosures an confirmation required by this section shall be in addition to the disclosure required by Section 2079.14. An agent's duty to provide disclosure and confirmation of representation In this section may be performed by a real estate salesperson or broker associate affiliated with that broker. 2079.18 (Repealed pursuant to AB-1289)
2079.19 The payment of compensation or the obligation to pay compensation lo an agent by the seller or buyer is not necessarily determinative of a particular agency relationship between an agent and the seller or buyer. A listing agent and a selling agent may agree to share any compensation or commission paid, or any right to any compensation or commission for which an obligation arises as the result of a real estate transaction, and the terms of any such agreement shall not necessarily be determinative of a particular relationship. 2079.20 Nothing in this article prevents an agent from selecting, as a condition of the agent's employment, a specific form of agency relationship not specifically prohibited by this article if the requirements of Section 2079.14 and Section 2079.17 are complied with. 2079.21 (a) A dual agent may not, without the express pennission of the seller, disclose to the buyer any confidential Information obtained from the seller. (b) A dual agent may not, without the express permission of the buyer, disclose to the seller any confidential information obtained from the buyer. (c) "Confidential infonnalion" means facts relating to the client's financial position, motivations, bargaining position, or other personal information that may impact price, such as the seller is willing to accept a price less than the listing price or the buyer is willing to pay a price greater than the price offered. (d) This section does not alter in any way the duly or responsibflity of a dual agent to any principal with respect to confidential information other than price. 2079.22 Nothing In this article precludes a seller's agent from also being a buyer's agent. If a seller or buyer in a transaction chooses to not be represented by an agent, that does not. of itself, make that agent a dual agent. 2079.23 A contract between the principal and agent may be modified or altered lo change the agency relationship at any lime before the performance of the act which is the object of the agency wilh the written consent of the parties to the agency relationship. 2079.24 Nothing In this article shall be construed lo either diminish Iha duty of disclosure owed buyers and sellers by agents and their associate licensees, subagents, and employees or to relieve agents and their associate licensees, subagents, and employees from liability for their conduct in connection with acls governed by this article or for any breach of a fiduciary duty or a duty of disclosure. © 2021, California Association of REAL TORS®, Inc. United States copyright law (Title 17 U.S. Code) forbids the unauthorized distribution, display and reproduction of this farm, or any portion thereof. by photocopy machine or any other means, Including facsimile or computerized formals. THIS FORM HAS BEEN APPROVED BY THE CALIFORNIA ASSOCIATION OF REAL TORS®. NO REPRESENTATION IS MADE AS TO THE LEGAL VALIDITY OR ACCURACY OF ANY PROVISION IN ANY SPECIFIC TRANSACTION. A REAL ESTATE BROKER IS THE PERSON QUALIFIED TO ADVISE ON REAL ESTATE TRANSACTIONS. IF YOU DESIRE LEGAL OR TAX ADVICE, CONSULT AN APPROPRIATE PROFESSIONAL. This form is made available to real estate professionals through an agreement wilh or purchase from the California Association of REAL TORS®. II Is not Intended to identify the user as a REAL TOR®. REAL TOR® is a registered colleciNe membership mark which may be used only by members oflhe NATIONAL ASSOCIATION OF REALTORS® who subscribe to its Code of Ethics.
IJ
Published and Distributed by:
REAL ESTATE BUSINESS SERVICES, LLC.
a subsidiary of the CAUFORNIA ASSOC/A TION OF REAL TORS® . 525 South Virgil Avenue, Los Angeles, California 00020 AD REVISED 12/21 (PAGE 2 OF 2)
DISCLOSURE REGARDING REAL ESTATE AGENCY RELATIONSHIP (AD PAGE 2 OF 2) Proauced wllh Lone Wolr Trans&ciions (zipForm Edition) 717 N Harwood St, Suite 22□0. Dallas, TX 75201 •crwflwgl( corn G~rdCJl Gro·ui
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FAIR HOUSING & DISCRIMINATION ADVISORY
(C.A.R. Form FHDA, 10/20)
1. EQUAL ACCESS TO HOUSING FOR ALL: All housing in California is available lo all persons. Discrimination as noted below is prohibited by law. Resources are available for those who have experienced unequal treatment under the law.
2. FEDERAL AND STATE LAWS PROHIBIT DISCRIMINATION AGAINST IDENTIFIED PROTECTED CLASSES:
A. FEDERAL FAIR HOUSING ACT ("FHA") Title VIII of the Civil Rights Act; 42 U.S.C. §§ 3601-3619; Prohibits discrimination in sales, rental or financing of residential housing against persons in protected classes; B. CALIFORNIA FAIR EMPLOYMENT AND HOUSING ACT ("FEHA") California Government Code ("GC") §§12900- 12996, 12955; 2 California Code of Regulations ('CCR") §§12005-12271; Prohibits discrimination in sales, rental or financing of housing opportunity against persons in protected classes by providers of housing accommodation and financial assistance services as related to housing;
C. CALIFORNIA UNRUH CIVIL RIGHTS ACT ("Unruh") California Civil Code ("CC") §51; Prohibits business establishments from discriminating against, and requires full and equal accommodation, advantages, facilities, privileges, and services to persons in protected classes;
D. AMERICANS WITH DISABILITIES ACT ("ADA") 42 U.S.C. §§12181-12189; Title Ill of the ADA prohibits discrimination based on disability in public accommodations: and
E. 0TH ER FAIR HOUSING LAWS: Section 504 of Rehabilitation Act of 1973 29 U.S. C. §794; Ralph Civil Rights Act CC §51. 7 .; California Disabled Persons Act; CC §§54-55.32; any local city or county fair housing ordinances, as applicable.
3. POTENTIAL LEGAL REMEDIES FOR UNLAWFUL DISCRIMINATION: Vlolations of fair housing laws may result in monetary civil fines, Injunctive relief, compensatory and/or punitive damages, and attorney fees and costs.
4. PROTECTED CLASSES/CHARACTERISTICS: Whether specified in Federal or State law or both, discrimination against persons if based on that person's belonging to, association with, or perceived membership to, any of the following classes or categories is prohibited.
Race Color Ancestry National Origin Religion
Sex Sexual Orientation Gender Gender Identity Gender Expression Marital Status Familial Status (family with a Source of Income (e.g., Disability (Mental & Medical Condition child or children under 18) Section 8 Voucher) Physical) Citizenship Primary Language 1mmigralion Status MilitaryNeteran Status Age Criminal History {non-relevant convictions) I Any arbitrary characterisUc
5. THE CALIFORNIA DEPARTMENT OF REAL ESTATE REQUIRES TRAINING AND SUPERVISION TO PREVENT HOUSING DISCRIMINATION BY REAL ESTATE LICENSEES:
A. California Business & Professions Code ("B&PC') §10170.5(a)(4) requires 3 hours of training on fair housing for DRE license renewal; Real Estate Regulation §2725(() requires brokers who oversee salespersons to be familiar with the requirements of federal and state laws relating la the prohibition of discrimination.
B. Violation of DRE regulations or real estate laws against housing discrimination by a real estate licensee may result in the loss or suspension of the licensee's real estate license. B&PC §10177(1)(1 ): 10 CCR §2780
6. REALTOR® ORGANIZATIONS PROHIBIT DISCRIMINATION: NAR Code of Ethics Article 10 prohibits discrimination in employment practices or in rendering real estate license services against any person because of race, color, religion, sex, handicap, familial status, national origin, sexual orientation, or gender identity by REAL TORS®.
7. WHO IS REQUIRED TO COMPLY WITH FAIR HOUSING LAWS?
Below is a non-exclusive list of providers of housing accommodations or financial assistance services as related to housing who are most likely to be encountered in a housing transaction and who must comply with fair housing laws. • Sellers • Landlords • Sublessors
• Real estate licensees • Real estate brokerage firms • Property managers • Mobilehome parks • Homeowners Associations ("HOAs"): • Banks and Mortgage lenders • Insurance companies • Government housing services
8. EXAMPLES OF CONDUCT THAT MAY NOT BE MOTIVATED BY DISCRIMINATORY INTENT BUT COULD HAVE A DISCRIMINATORY EFFECT:
A. Prior to acceptance of an offer, asking for or offering buyer personal information or letters from the buyer, especially with photos.
Those types of documents may inadvertently reveal, or be perceived as revealing, protected status information thereby increasing the risk of (I) actual or unconscious bias, and (ii) potential legal claims against sellers and others by prospective buyers whose offers were rejected.
B. Refusing to rent (i) an upper level unit lo an elderly tenant out of concern for the tenant's ability to navigate stairs or (ii) a house with a pool to a person with young children out of concern for the children's safety.
9. EXAMPLES OF UNLAWFUL OR IMPROPER CONDUCT BASED ON A PROTECTED CLASS OR CHARACTERISTIC:
A. Refusing to negotiate for a sale, rental or financing or otherwise make a housing opportunity unavailable; failing to presenl offers due to a person's protected status;
B. Refuslng or failing to show, rent, sell or finance housing; "channeling" or "steering" a prospective buyer or tenant to or away from a particular area due to that person's protected status or because of the racial, religious or ethnic composition of the neighborhood; C. "Blockbusting" or causing "panic selling" by inducing a listing, sale or rental based on the grounds of loss of value of property, increase in crime, or decline in school quality due to the entry or prospective entry of people in protected categories into the neighborhood;
D. Making any statement or advertisement that indicates any preference, limitation, or discrimination; II:> 2020, California Assoclallon of REAL TORS®, Inc.
FHDA 10/20 (PAGE 1 OF 2)
FAIR HOUSING & DISCRIMINATION ADVISORY FHDA PAGE 1 OF 2 MoYoto Inc,.. 1900S. :-.orrolk St. San M111t1to, CA 9440J Phone-: (7l-1)178-06l5 Fax:
EIIZDhtth Ngu)'m Pro<lucedwllh Lone Walt Transacilons (zlpForm Editlon>717 N Harwood St, Suite 220D, D•llss, TX 75201 www lW9lf.com
E. Inquiring about protected characteristics (such as asking tenant applicants if they are married, or prospective purchasers if they have children or are planning to start a family);
F. Using criminal history information before otherwise affirming eligibility, and without a legally sufficient justification; G. Failing to assess financial standards based on the portion of the income responsible by a tenant who receives government subsidies (such as basing an otherwise neutral rent to income ratio on the whole rent rather than just the part of rent that is the tenant's responsibility);
H. Denying a home Joan or homeowner's insurance;
I. Offering inferior terms, conditions, privileges, facilities or services; J. Using different qualification criteria or procedures for sale or rental of housing such as income standards, application requirements, application fees, credit analyses, sale or rental approval procedures or other requirements; K. Harassing a person;
L. Taking an adverse action based on protected characteristics; M. Refusing to permit a reasonable modification lo the premises, as requested by a person with a disability {such as refusing to allow a wheel chair bound tenant to install, at their expense, a ramp over front or rear steps, or refusing lo allow a physically disabled tenant from installing, at their own expense, grab bars in a shower or bathtub); N. Refusing to make reasonable accommodation in policies, rules, practices, or services for a person with a disability (such as the following, if an actual or prospective tenant with a disability has a service animal or support animal):
(i) Failing to allow that person to keep the service animal or emotional support animal in rental property, (ii) Charging that person higher rent or increased security deposit, or (iii) Failing to show rental or sale property to that person who is accompanied by the service animal or support animal, and;
0. Retaliating for asserting rights under fair housing laws.
10. EXAMPLES OF POSITIVE PRACTICES:
A. Real estate licensees working with buyers or tenants should apply the same objective property selection criteria, such as location/neighborhood, property features, and price range and other considerations, to all prospects.
B. Real estate licensees should provide complete and objective information to all clients based on the client's selection criteria.
C. Real estate licensees should provide the same professional courtesy In responding to inquiries, sharing of information and offers of assistance to all clients and prospects.
D. Housing providers should not make any statement or advertisement that directly or indirectly implies preference, limitation, or discrimination regarding any protected characteristic (such as "no children" or "English-speakers only").
E. Housing providers should use a selection process relying on objective information about a prospective buyer's offer or tenant's application and not seek any Information that may disclose any protected characteristics (such as using a summary document, e.g. C.A.R. Form SUM-MO, to compare multiple offers on objective terms).
11. FAIR HOUSING RESOURCES: If you have questions about your obligations or rights under the Fair Housing laws, or you think you have been discriminated against, you may want to contact one or more of the sources listed below to discuss what you can do about ii, and whether the resource is able to assist you.
A. Federal: https://www.hud.gov/program_offices/fair_housing_equal_opp
8. State: https://www.dfeh.ca.gov/housingf
C. Local: local Fair Housing Council office (non-profit, free service) D. DRE: https://www.dre.ca.gov/Consumers/FileComplaint.html E. Local Association of REAL TORS®. Lisi available at: https://www.car.orglen/contactus/rosters/localassociationroster.
F. Any qualified California fair housing attorney, or if applicable, landlord-tenant attorney.
12. LIMITED EXCEPTIONS TO FAIR HOUSING REQUIREMENTS: No person should rely on any exception below without first seeking legal advice about whether the exception applies to their situation. Real estate licensees are not qualified to provide advice on the application of these exceptions.
A. Legally compliant senior housing is exempt from FHA, FEHA and Unruh as related to age or familial status only; B. An owner of a single-family residence who resides at the property with one lodger may be exempt from FEHA for rental purposes, PROVIDED no real estate licensee is Involved in the rental; C. An owner of a single-family residence may be exempt from FHA for sale or rental purposes, PROVIDED (i) no real estate licensee Is Involved in the sale or rental and (ii) no discriminatory advertising is used, and (Iii) the owner owns no more than three single-family residences. Other restrictions apply; D. An owner of residential property with one to four units who resides at the property, may be exempt from FHA for rental purposes, PROVIDED no real estate licensee is involved in the rental; and E. Both FHA and FEHA do not apply to roommate situations. See, Fair Housing Council v Roommate.com LLC, 666 F.3d 1216 (2019).
F. Since both the 14th Amendment of the U.S. Constitution and the Civil Rights Act of 1866 prohibit discrimination based on race; the FHA and FEHA exemptions do not extend to discrimination based on race.
BuyerfT en ant and Seller/Landford have read, understand and acknowledge receipt of a copy of this Fair Housing & Discrimination Advisory.
BuyerfTenant City of Garden Grove Date _________ _
BuyerfTenant ______________________________ _ Date _________ _ Seller/Landlord KJ Investment Group LLC Date _________ _ Seller/Landlord ____________________________ _ Date _________ _ e 2020, California Association of REALTORS®, Inc. United States copyright law (Title 17 U.S. Code) forbids the unauthorized distribution, display and reproduction of this form, or any portion thereof, by photocopy machine or any other means, including facsimile or computenzed formats. THIS FORM HAS BEEN APPROVED BY THE CALIFORNIA ASSOCIATION OF REAL TORS®. NO REPRESENTATION IS MADE AS TO THE LEGAL VALIDITY OR ACCURACY OF ANY PROVISION IN ANY SPECIFIC TRANSACTION. A REAL ESTATE BROKER IS THE PERSON QUALIFIED TO ADVISE ON REAL ESTATE TRANSACTIONS. IF YOU DESIRE LEGAL OR TAX ADVICE, CONSULT AN APPROPRIATE PROFESSIONAL. Thl.!I form is made ava!able to real estate professionals through an agreement with or pur1:hase from the California Association of REAL TORS®. It is not intended to Identify the user as a REALTOR®. REALTOR® is a registered collective membership mark which may be used only by members of the NATIONAL ASSOCIATION OF REALTORS®who subsctibe to fts Code of Ethics.
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Published and Distributed by:
REAL ESTATE BUSINESS SERVICES, LLC. ~
a subsidiary of the CALIFORNIA ASSOC/A TION OF REAL TORS® = 525 South Virgil Avenue, Los Angeles, Callfomla 90020 ~ FHDA 10/20 (PAGE 2 OF 2)
FAIR HOUSING & DISCRIMINATION ADVISORY (FHDA PAGE 2 OF 2) Produced wilh Lone Woll Transactions (zipForm Edition) 717 N flarwood St, Suite 2200, Dalo5, TX 75201 www lwol( c:pm Garden Gron
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WIRE FRAUD AND ELECTRONIC FUNDS
TRANSFER ADVISORY
(C.A.R. Form WFA, Revised 12/21)
Property Address: 11277 Garden Grove Blvd, Garden Grove CA, Garden Grove, WIRE FRAUD AND ELECTRONIC FUNDS TRANSFERS ADVISORY:
("Property").
The ability to communicate and conduct business electronically is a convenience and reality in nearly all parts of our lives.
Al the same time, Jt has provided hackers and scammers new opportunities for thelr criminal activity. Many businesses have been victimized and the real estate business is no exception.
While wiring or electronically transferring funds is a welcome convenience, we all need to exercise extreme caution.
Emails attempting to induce fraudulent wire transfers have been received and have appeared to be legitimate. Reports indicate that some hackers have been able to intercept emailed transfer instructions, obtain account information and, by altering some of the data, redirect the funds to a different account. It also appears that some hackers were able to provide false phone numbers for verifying the wiring or funds transfer instructions. In those cases, the victim called the number provided to confirm the instructions, and then unwittingly authorized a transfer to somewhere or someone other than the intended recipient.
ACCORDINGLY, YOU ARE ADVISED:
1. Obtain phone numbers and account numbers only from Escrow Officers, Property Managers, or Landlords at the beginning of the transaction.
2. DO NOT EVER WIRE OR ELECTRONICALLY TRANSFER FUNDS PRIOR TO CALLING TO CONFIRM THE TRANSFER INSTRUCTIONS. ONLY USE A PHONE NUMBER YOU WERE PROVIDED PREVIOUSLY. Do not use any different phone number or account number included in any emailed transfer instructions.
3. Orally confirm the transfer instruction is legitimate and confirm the bank routing number, account numbers and other codes before taking steps to transfer the funds.
4. Avoid sending personal information in emails or texts. Provide such information in person or over the telephone directly to the Escrow Officer, Property Manager, or Landlord.
5. Take steps to secure the system you are using with your email account. These steps include creating strong passwords, using secure WiFi, and not using free services.
If you believe you have received questionable or suspicious wire or funds transfer instructions, immediately notify your bank, and the other party, and the Escrow Office, Landlord, or Property Manager. The sources below, as well as others, can also provide information:
Federal Bureau of Investigation: https://www.fbi.gov/; the FBl's IC3 at www.ic3.gov; or 310-477-6565 National White Collar Crime Center: http://www.nw3c.org/ On Guard Onllne: https://www.onguardonline.gov/
NOTE: There are existing alternatives to electronic and wired fund transfers such as cashier's checks.
By signing below, the undersigned acknowledge that each has read, understands and has received a copy of this Wire Fraud and Electronic Funds Transfer Advisory.
Buyer/Tenant
Buyer/Tenant
Seller/Landlord
Seller/Landlord
City of Garden Grove Date _____ _
Date -------------------------------------
K J Investment Group LLC Date ____ _
Date ------
©2021, California Association of REAL TORS®, Inc. United States copyright law (Tille 17 U.S. Code) forbids the unauthorized distribution. display and reproduction of this form, or any portion thereof, by photocopy machine or any other means. including facsimile or computerized formals. THIS FORM HAS BEEN APPROVED BY THE CALIFORNIA ASSOCIATION OF REAL TORS®. NO REPRESENTATION IS MADE AS TO THE LEGAL VALIDITY OR ACCURACY OF ANY PROVISION IN ANY SPECIFIC TRANSACTION. A REAL ESTATE BROKER IS THE PERSON QUALIFIED TO ADVISE ON REAL ESTATE TRANSACTIONS. IF YOU DESIRE LEGAL OR TAX ADVICE, CONSULT AN APPROPRIATE PROFESSIONAL. This form is made available to real estate professionals through an agreement with or purchase from the California Association of REAL TORS®. It is not Intended lo idenlify the user as a REALTOR®. REAL TOR® is a registered collective membership mark which may be used only by members of the NATIONAL ASSOCIATION OF REAL TORS® who subscribe to its Code of Ethics. []
Published and Distributed by:
REAL ESTATE BUSINESS SERVICES, LLC.
a subsidiary of the CALIFORNIA ASSOC/AT/ON OF REAL TORS® • 525 South Virg II Avenue, Los Angeles, Callfomla 90020 WFA REVISED 12/21 (PAGE 1 OF 1)
WIRE FRAUD AND ELECTRONIC FUNDS TRANSFER ADVISORY WFA PAGE 1 OF 1 ~r~voro ln.c .• J900S. Xor(Dlk St. San J\J11111ot CA 9.W0J Phone: (71-4)878-063~ Fa:c.:
fllzabecb. Ngu)'cllo Produced with Lone Wolf Transactions (zip-Form Edilion) 717 N Harwood St, Suite 2200t Da~as, TI( 75201 WtC«lwPH:com Cutd.,..n C rov~
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• AS!:iOCIATI0:--1
'II OF REALTORSll'
COMMERCIAL PURCHASE AGREEMENT
AND JOINT ESCROW INSTRUCTIONS
"'
(C.A.R. FORM CPA, Revised 12/21)
Dale Prepared: July 1, 2022
1. OFFER:
A. THIS IS AN OFFER FROM • rove ("Buyer'').
0 lndividual(s), DA Corporation, A Partnership, Other ____________ _ B. THE PROPERTY to be acquired is 11277 Garden Grove Bfvd, Garden Grove CA , situated in Garden Grove (City), Orange (County), California, _____ (Zip Code), Assessor's Parcel No{s). 090-171-35 ("Property").
(PostalfMalling address may be different from city jurisdiction. Buyer is advised to Investigate.) C. THE TERMS OF THE PURCHASE ARE SPECIFIED BELOW AND ON THE FOLLOWING PAGES.
D. Buyer and Seller are referred to herein as the "Parties.• Brokers and Agents are not Parties to this Agreement.
2. AGENCY:
A. DISCLOSURE: The Parties each acknowledge receipt of a "Disclosure Regarding Real Estate Agency Relationships" (C.A.R.
Form AD) if represented by a real estate licensee. Buyer's Agent is not legally required to give to Seller's Agent the AD form Signed by Buyer. Seller's Agent is not legally obligated to give lo Buyer's Agent the AD form Signed by Seller.
B. CONFIRMATION: The following agency relationships are hereby confirmed for this transaction.
Seller's Brokerage Firm_---,,-,-,,.--::-.,,-----,,-.--=.=:.:.:-=:~'-'-"'=~--,-,--.::--:-:-.-.--License Number _ ___,0:..:1.:9c:6c:B.:.4.=.03=---- ls the broker of (check one): the Seller; or both the Buyer and Seller (Dual Agent).
Seller's Agent Elizabeth N u en License Number 01932102 Is (check one): the Seller's Agent (Salesperson or broker associate); or both the Buyer's and Seller's Agent (Dual Agent).
Buyer's Brokerage Firm
Is the broker of ( check one)-: .,.O.,....th_e_B_u_y_e_r;_o_r ""O...-b_o_th_t_h_e_B_u_ye_r_a_n_d_S_e_lle_r_(_D_ua_l_A_g_e-nt-).-- License Number ______ _
Buyer's Agent--------------------~~-----License Number ______ _ Is (check one): 0 the Buyer's Agent (Sale~erson or broker associate); or O both the Buyer's and Seller's Agent (Dual Agent).
C. D More than one Brokerage represents LJ Seller, D Buyer. See, Additional Broker Acknowledgement (C.A.R. Form ASA).
D. POTENTIALLY COMPETING BUYERS AND SELLERS: The Parties each acknowledge receipt of a IKJ "Possible Representation of More than One Buyer or Seller -Disclosure and Consent" (CAR. Form PRBS}.
3. TERMS OF PURCHASE AND ALLOCATION OF COSTS: The items in this paragraph are contractual terms of the Agreement.
Referenced oara lraphs Provide further explanaUon. This form is 17 oaoes. The Parties are advised to read all 17 paQes.
Paragraph ParagJllph Title or Contract Tenns and Conditions Addltlonal Terms # Term
A 5,5B Purchase Price $ 7 999 000.00 ~All Cash
B Close of Escrow (COE) 0 Days after Acceptance
o~ 07/15/2022 (date}
lmm/dd/wwl
C 39A Expiration of Offer 3 calendar days after all Buyer SignatureeR) or (date) at 5PM or__ AMI
PM
D(1) 5A(1) Initial Deposit Amount $ l._% of purchase price) within 3 (or __J business days (% number above is for calculation purposes after Acee ptanca by wire transfer and is not a contractual term) ORO
0(2) 5A(2) ~ Increased Deposit $ 200,000.00 <......1L % of purchase price) Upon removal of all contingencies (Money placed into escrow after the (% number above is for calculation purposes ORO (dale) initial deposit. Use form DID al lime and is not a contractual term) OR~ extension of escrow increased deposit is made.)
E(1) 5C(1) Loan Amount(s}: First $ L_% of purchase price) Conventional or, if checked, Interest Rate Fixed rate orO Initial adjustable rate, not to OFHAOVA exceed % B
AR Forms FVAC, HID attached) Points Buyer to pay zero points or up to __ % of the Seller Financing loan amount Assumed Financing If FHA or VA checked, Deliver list of 17 (or __J Days after Acceptance a
Subject To Financing
lender req u I red re pairs Other:
E(2) 5C(2) Additional Financed Amount $ l._% of purchase price) Conventional or, If checked, Interest Rate Fixed rate or O Initial adjustable rate, not to ~
Seller Financing
exceed % Assumed Financing
Points Buyer to pay zero points or up to __ % of the Subject To Financing Other: loan amount
E(3) 7A Occupancy Type Investment
F 5D Balance of Down Payment S 7 799 000.00 -
PURCHASE PRICE TOTAL $ 7 999 000.00 ·-..
© 2021, California Associalion of REALTORS®, Inc.
CPA REVISED 12/21 (PAGE 1 OF 17) Buyer's Initials __ __;I ___ Seller's Initials --~' __ _ COMMERCIAL PURCHASE AGREEMENT AND JOINT ESCROW INSTRUCTIONS CPA PAGE 1 OF 17 Mo,·010 In,. UOO S, :'iorrolk St. Sao Mai .. , CA 9~40l Phone: (11,)lf'/8.06JS Fax, Elwob,tb Ngur•• Produe..d with Lone Wolf Transactions (zipFom, Edi~on) 717 N Harwood St, Sutte 2200, Danas, TX 75201 www twplt oom
Prooert 'Address: 11277 Garden Grove Blvd Garden Grove CA Garden Grove Date: Jufv 1 2022 Paragraph Paragraph Title or Contract i'em,• and Conditions Additional Terms # Term
G(1) SE Seller Credit, if any, to Buyer 0$ L__% of purchase price) Seller credit to be applied to closing (% number above is for calculation purposes costs OR
and is not a contractual term) Oother:
G(2) ADDITIONAL FINANCE TERMS;
H(1) 5B Verification of All Cash (sufficient Attached to the offer or~3 (or__) Days funds) after Acceptance
H(2) 6A Verification of Down Payment and Attached to the offer or~ 3 (or__) Days Closing Costs after Acceptance
H(3) 6B Verification of Loan Application Attached to the offer or O 3 (or__) Days after Acceotance
D Prequalification D Preapproval
I Intentionally Left Blank
J 19 Final Verification of Condition 5 (or_) Days prior to COE K 26 Assignment Request 17 (or__) Days after Acceptance L 8 CONTINGENCIES TIME TO REMOVE SONillNGENCIES CONTINGENCY REMOVED L(1) SA Loan(s) 17 (or__) Days after Acceptance 0 No loan contingency L{2) 8B Appraisal: Appraisal contingency 17 (or__) Days after Acceptance 0 No appraisal contingency based upon appraised value at a Removal of appraisal contingency minimum of purchase price or does not eliminate appraisal □$ cancellation rights in FVAC.
L(3) BC, 15 Investigation of Property 17 (or__) Days after Acceptance Informational Access to Property 17 (or__) Days after Acceptance REMOVAL OR WAIVER OF Buyer's right to access the Property for informational purposes only is NOT a conUngency, CONTINGENCY:
does NOT create ca11cellation rights, and applies even if co11tlngencies are removed. Any contingency in L( 1 )-L(7) may be L{4) 8D, 17A Review of Seller Documents 17 (or_) Days after Acceptance, or 5 Days removed or waived by checking the after receipt, whichever Is later applicable box above or attaching a L(S) 8E, 16A Preliminary ("Title") Report 17 (or__) Days after Acceptance, or 5 Days Contingency Removal (C.A.R. Form after receipt, which ever ls I ater CR) and checking the applicable box therein. Removal or Waiver at L{6) BF, 11C Common Interest Olsclosures 17 (or__) Days after Acceptance. or 5 Days time of offer is against Agent advice. required by Civil Code § 4525 or this after receipt, whichever is later See paragraph SH. Agreement L(7) BG, 98(6) Review of leased or llened items 17 (or__) Days after Acceptance, or 5 Days 0 CR attached (Such as for solar panels or propane after rece T pt, whichever is later tanks or PACE or HERO liens)
L(8) SJ Sala of Buyer's Property
Sale of Buyer's property is not a
contingency, UNLESS checked here:
0 C.A.R. Form COP attached
M Possession Time for Perfonnance Adi.iitlonal Terms
M(1) Vacant Units; Upon notice of recordation D Tenant Occupied Unit(s) lo be Tenant Occupied Units being On COE date delivered vacant (#s l delivered subject to tenant rights M(2) 7C Seller Occupied Upon notice of recordation, ORD 6 PM or C.A.R. Form SIP attached if 29 or __ 0AMl0PM fewer days. C.A.R. Form CL
COE date or, if checked below, attached If 30 or more days.
B--days after COE (29 or fewer days)
__ days after COE (30 or more days)
N Oocuments/Feea/Compliance Time for Performance
N(1} 16A Seller Delivery of Documents 7 (or__) Days after Acceptance N(2) 22B Sign and return Escrow Holder
General Provisions, Supplemental
5 (or__) Days after receipt
I nstructlons
N(3) 11C(2) Time to pay fees for ordering OA
Documents
3 (or__) Days after Acceptance
N(4) 108(1) Install smoke alarm(s), CO 7 (or__) Days after Acceplance detecior(s), water heater bracing
N(S) 35 Evidence of rep resentalive authority 3 Days after Acceptance 0 Intentionally Left Blank
CPA REVISED 12/21 (PAGE 2 OF 17) Buyer's Initials ----' ___ Seller's Initials COMMERCIAL PURCHASE AGREEMENT AND JOINT ESCROW INSTRUCTIONS (CPA PAGE 2 OF 17) Prnduc~d wilh Lon• Wolf Trans.actions (zfpfonn Edition} 717 N Harwood St, Suile 2200, Dallas, TX 75201 WWN fwolf ccm Garden Gra\'c.
Property Address· 11277 Garden Grove Blvd Garden Grove CA Garden Grove I I I Date· July 1 2022 ' p Items Included and Excluded
P(1) 9 Items Included -All Items specified in Paragraph 9B are Included and the following, if checked:
□ .o .□
P(2) 9 Excluded Items:
□ ·□ ·□
Q, Allocation of Costs
Paragraph
#
uem t:JNCnptlon Who Pays (lfBotll is ahecked, cost to 1>e split equally unless OthefWise Agreed)
AadruonaJ Terms
0(1) 10A, 11D Natural Hazard Zone Disclosure D Buyer ~ Seller O Both B
Environmental
Report, including tax information Other
D Provided by:
Q(2) 158(1 )(D) Environmental Survey ~ Buyer O Seller D Both Q(3) Report 0 Buyer O Seller D Both
Q(4) 108(1) Smoke alamis, CO detectors, water
heater bracing
D Buyer O Seller ~ Both
Q(5) 10A Government Required Point of Sale ~ Buyer D Seller O Both 108(2) inspections, reports
Q(6) 1 0B(2)(A) Government Required Point of Sale D Buyer ~ Seller D Both corrective/remedial actions
Q(7) 22B Escrow Fees D Buyer O Seller O Both Escrow Holder:
~ Each to pay their own fees
Q(8) 16 Owner's title Insurance policy ~ Buyer D Seller D Both Title Company (If different from Escrow Holder):
First American Title Com,11an),:'
Q(9) Buyer's Lender title insurance policy Buyer Unless otherwise Agreed, Buyer shall purchase any title insurance
pol icy insuring Buyer's lender.
Q{10) County transfer tax, fees 0 Buyer Iii Seller O Both Q{11) City transfer tax, fees 0 Buyer ~ Seller D Both
Q(12) 11C(2) OA fee for preparing disclosures Seller
0(13) OA certification fee Buyer
Q(14) OA transfer fees 0 Buyer D Seller D Both Unless Otherwise Agreed, Seller shall pay for separate OA move-
out fee and Buyer shall pay for
separate OA move-in fee, Applies
if separately billed or itemized with
cost in transfer fee.
0(15) Private transfer fees Seller, or if checked, D Buyer D Both Q(16) fees or costs D Buyer D Seller O Both
Q(17) fees or costs 0 Buyer D Seller O Both -- R Additional Tenancy Documents O Income and Expense Statements O Tenant Estoppel Certificate s OTHER TERMS:
4. PROPERTY ADDENDA AND ADVISORIES: (check all that apply) A. PROPERTY TYPE ADDENDA: This Agreement is subject lo the terms contained in the Addenda checked below:
D Probate Agreement Purchase Addendum (C.A.R. Form PA-PA) D Other-==-==:-:--=-,--=-----:-----:-:--,-,--:--:-----:----,.....,..---,-:--.----:---:--:-----:---:--:---:-...,...,--,----------B. OTHER ADDENDA: This Agreement is subject to the terms contained in the Addenda checked below:
~Addendum# 1 (C.A.R. Form ADM) §Assumed Financing Addendum (C.A.R. Form AFA) Short Sale Addendum (CAR. Form SSA)
~
Back Up Offer Addendum (C.A.R. Form BUO} Court Confirmation Addendum (C.A.R. Form CCA) Septic, Well, Property Monument and Propane Addendum (C.A.R. Fem, SWPI) Buyer Intent to Exchange Addendum (C.A.R. Form BXA) ~ Seller Intent to Exchange Addendum (C.A.R. Form SXA) Other________________ D Other ___________________ _
CPA REVISED 12/21 (PAGE 3 OF 17) Buyer's Initials ___ ___ Seller's Initials COMMERCIAL PURCHASE AGREEMENT AND JOINT ESCROW INSTRUCTIONS (CPA PAGE 3 OF 17) Prod•ced with Lone Woll Transactions (zlpForm Edition] 717 N Harwood 51, Suite 2200, Dallas, TX 75201 www lwll,com Gardtn Grove
Property Address: 11277 Garden Grove Blvd, Garden Grove CA, Garden Grove, Date: ""J=-u"'-ly_1:.,;,-=2:-=0-=2=-2--,---- C. BUYER AND SELLER ADVISORIES: {Note: All Advisories below are provided for reference purposes only and are not intended to be incorporated Into this Agreement.)
~ Buyer's Investigation Advisory (C.A.R. Form BIA)
~ Wire Fraud Advisory (C.A.R. Form WFA)
Ii Fair Housing and Discrimination Advisory (CAR. Form FHDA) ~Cal.Consumer Privacy Act Advisory (C.A.R. Form CCPA)
(Parties may also receive a privacy disclosure from their own Agent.) ~
Wildfire Disaster Advisory (C.A.R. Form WFDA) ~ Statewide Buyer and Seller Advisory (CAR. Form SBSA) Trust Advisory (C.A.R. Form TA) Short Sale Information and Advisory (C.A.R. Form SSIA) REO Advisory (C.A.R. Form REO) Probate Advisory (C.A.R. Form PA) Other: ====--=--====-=IT:==-:CT"":=-a::-===c-::::--Other: 5. ADDITIONAL TERMS AFFECTING PURCHASE PRICE: Buyer represents th_a.,..,t fu,--nd.,..s_wr....,·""11 b:-e_g_o_o-:d-wh-,-e-n'd-ep-o-s"'"ite_d,....wi....,,"'"th--=E=-s-c-ro_w....,H.,..o...,.ld.,..e_r._ A. DEPOSIT:
(1) INITIAL DEPOSIT: Buyer shall deliver deposit directly to Escrow Holder. If a method other than wire transfer is specified in paragraph 30{1) and such method is unacceptable to Escrow Holder, then upon notice from Escrow Holder, delivery shall be by wire transfer.
(2) INCREASED DEPOSIT: Increased deposit specified in paragraph 30(2) is to be delivered to Escrow Holder in the same manner as the Initial Deposit. If the Parties agree to liquidated damages in this Agreement, they also agree to incorporate the increased deposit into the liquidated damages amount by signing a new liquidated damages clause (C.A.R. Form DID) at the lime the increased deposit is delivered to Escrow Holder. (3) RETENTION OF DEPOSIT: Paragraph 36, if initialed by all Parties or otherwise incorporated into this Agreement, specifies a remedy for Buyer's default. Buyer and Seller are advised to consult with a qualified California real estate attorney before adding any other clause specifying a remedy (such as release or forfeiture of deposit or making a deposit non-refundable) for failure of Buyer to complete the purchase. Any such clause shall be deemed invalid unless the clause independently satisfies the statutory liquidated damages requirements set forth in the Civll Code.
B. ALL CASH OFFER: If an all cash offer is specified in paragraph 3A, no loan is needed to purchase the Property. This Agreement is NOT contingent on Buyer obtaining a loan. Buyer shall, within the time specified in paragraph 3H(1), Deliver written verification of funds sufficient for the purchase price and closing costs.
C. LOAN(S):
(1) FIRST LOAN: This loan will provide for conventional financing UNLESS FHA, VA, Seller Financing (C.A.R. Form SFA), Subject To Financing, Assumed Financing, or Other is checked in paragraph 3E(1). (2) ADDITIONAL FINANCED AMOUNT: If an additional financed amount is specified in paragraph 3E(2), that amount will provide for conventional financing UNLESS Seller Financing (C.A.R. Form SFA), or Other is checked in paragraph 3E(2). (3) BUYER'S LOAN STATUS: Buyer authorizes Seller and Seller's Authorized Agent to contact Buyer's lender(s) to determine the status of any Buyer's Joan specified in paragraph 3E, or any alternate loan Buyer pursues, whether or not a contingency of this Agreement. If the contact information for Buyer's lender(s) is different from that provided under the terms of paragraph 6B, Buyer shall Deliver the updated contact information within 1 Day of Seller's request. (4) ASSUMED OR SUBJECT TO FINANCING: Seller represents that Seller is not delinquent on any payments due on any loans. If the Property is acquired subject to an existing loan, Buyer and Seller are advised to consult with legal counsel regarding the ability of an existing lender to call the loan due, and the consequences thereof. (5) Buyer shall, within the time specified in paragraph 3E(1), Deliver to Seller written notice (C.A.R. Form RR or AEA) (i) of any lender requirements that Buyer requests Seller to pay for or otherwise correct or {ii) that there are no lender requirements. Notwithstanding Seller's agreement that Buyer may obtain FHA or VA financing, Seller has no obligation to pay or satisfy any or all lender requirements unless agreed in writing.
D. BALANCE OF PURCHASE PRICE (DOWN PAYMENT) (Including all-cash funds) to be deposited with Escrow Holder pursuant to Escrow Holder instructions.
E. LIMITS ON CREDITS TO BUYER: Any credit to Buyer, from any source, for closing or other costs that is agreed to by the Parties ("Contractual Credit") shall be disclosed to Buyer's lender, if any, and made at Close Of Escrow. If the total credit allowed by Buyer's lender ("Lender Allowable Credit") is less than the Contractual Credit, then (i) the Contractual Credit from Seller shall be reduced to the Lender Allowable Credit, and (ii) in the absence of a separate written agreement between the Parties, there shall be no automatic adjustment to the purchase price to make up for the difference between the Contractual Credit and the Lender Allowable Credit.
6. ADDITIONAL FINANCING TERMS:
A. VERIFICATION OF DOWN PAYMENT AND CLOSING COSTS: Written verification of Buyer's down payment and closing costs may be made by Buyer or Buyer's lender or loan broker pursuant to paragraph 6B.
B. VERIFICATION OF LOAN APPLICATIONS: Buyer shall Deliver to Seller, within the time specified in paragraph 3H(3) a letter from Buyer's lender or loan broker slating that, based on a review of Buyer's written application and credit report, Buyer is prequalified or preapproved for any NEW loan specified in paragraph 3E. If any loan specified in paragraph 3E is an adjustable rate loan, the prequalification or preapproval letter shall be based on the qualifying rate, not the initial loan rate.
C. BUYER STATED FINANCING: Seller is relying on Buyer's representation of the type of financing specified (including, but not limited to, as applicable, all cash, amount of down payment, or contingent or non-contingent loan). Seller has agreed to a specific closing date, purchase price, and lo sell to Buyer in reliance on Buyer's specified financing. Buyer shall pursue the financing specified in this Agreement, even if Buyer also elects to pursue an alternative form of financing. Seller has no obligation to cooperate with Buyer's efforts to obtain any financing other than that specified in this Agreement but shall not interfere with closing at the purchase price on the COE date (paragraph 38) even if based upon alternate financing. Buyer's inability to obtain alternate financing does not excuse Buyer from the obligation to purchase the Property and close escrow as specified in this Agreement.
7. CLOSING AND POSSESSION:
A. OCCUPANCY: Buyer intends to occupy the Property as indicated in paragraph 3E(3). Occupancy may impact available financing.
CPA REVISED 12/21 (PAGE 4 OF 17) Buyer's Initials ___ ___ Seller's Initials COMMERCIAL PURCHASE AGREEMENT AND JOINT ESCROW INSTRUCTIONS (CPA PAGE 4 OF 17) Producod with Lon• WolfTransaclicn• (zipFom, Edition) 717 N Harwood St, Su~• 2200, Dalla,, TX 75201 wwwlwg~com Gairden G roY.t
Property Address: 11277 Garden Grove Blvd, Garden Grove CA, Garden Grove. Dale: =-J.a:.u""ly_1""1-=2;;:;.0;a;22=-------- B. CONDITION OF PROPERTY ON CLOSING:
(1) Unless Otherwise Agreed: {i) the Property shall be delivered "As-ls" in its PRESENT physical condition as of the date of Acceptance; (ii) the Property, including pool, spa, landscaping and grounds, is to be maintained in substantially the same condition as on the date of Acceptance: and (iii) all debris and personal property not included in the sale shall be removed by Close Of Escrow or at the time possession is delivered lo Buyer, if not on the same dale. If items are not removed when possession is delivered to Buyer, all items shall be deemed abandoned. Buyer, after first Delivering to Seller written notice to remove the items within 3 Days, may pay lo have such items removed or disposed or and may bring legal action, as per this Agreement, to receive reasonable costs from Seller. (2) Buyer is strongly advised to conduct investigations of the entire Property in order to determine its present condition. Seller and Agents may not be aware of all defects affecting the Property or other factors that Buyer considers important. Property improvements may not be built according to code, in compliance with current Law, or have had all required penmits issued and/or finalized, C. SELLER REMAINING IN POSSESSION AFTER CLOSE OF ESCROW: If Seller has the right to remain in possession after Close Of Escrow pursuant to paragraph 3M(2) or as Otherwise Agreed, (i) the Parties are advised to consult with their insurance and legal advisors for information about liability and damage or injury to persons and personal and real property; (ii) Buyer is advised to consult with Buyer's lender about the impact of Seller's occupancy on Buyer's loan; and (iii) consult with a qualified California real estate attorney where the Property is located to determine the ongoing rights and responsibilities of both Buyer and Seller with regard to each other, including possible tenant rights, and what type of written agreement to use to document the relationship between the Parties.
D. At Close Of Escrow: (i) Seller assigns to Buyer any assignable warranty rights for items included in the sale; and (II) Seller shall Deliver lo Buyer available Copies of any such warranties. Agents cannot and will not determine the assignability of any warranties.
E. Seller shall, on Close Of Escrow unless Otherwise Agreed and even if Seller remains in possession, provide keys, passwords, codes and/or means to operate all locks, mailboxes, security systems, alarms, home automation systems, intranet and Internet-connected devices included in the purchase price, garage door openers, and all items included in either paragraph 3P or paragraph 9. If the Property is a condominium or located in a common interest development, Seller shall be responsible for securing or providing any such items for Association amenities, facilities, and access. Buyer may be required to pay a deposit to the Owners' Association ("OA") to obtain keys lo accessible OA facilities.
8. CONTINGENCIES AND REMOVAL OF CONTINGENCIES:
A. LOAN(S):
( 1) This Agreement is, unless otherwise specified in paragraph 3L(1) or an attached CR form, contingent upon Buyer obtaining the loan(s) specified. If contingent, Buyer shall act diligently and in good faith to obtain the designated loan(s). If there is no appraisal contingency or the appraisal contingency has been waived or removed, then failure of the Property to appraise at the purchase price does not entitle Buyer to exercise the cancellation right pursuant to the loan contingency if Buyer is otherwise qualified for the specified loan and Buyer is able to satisfy lender's non-appraisal conditions for closing the loan.
(2) Buyer is advised to investigate the insurability of the Property as eariy as possible, as this may be a requirement for lending. Buyer's ability to obtain insurance for the Property, including fire insurance, Is part of Buyer's Investigation of Property contingency. Failure of Buyer to obtain insurance may justify cancellation based on the Investigation contingency but not the loan contingency.
(3) Buyer's contractual obligations regarding deposit, balance of down payment and closing costs are not contingencies of this Agreement, unless Otherwise Agreed.
{4) If there is an appraisal contingency, removal of the loan contingency shall nol be deemed removal of the appraisal contingency. (5) NO LOAN CONTINGENCY: If "No loan contingency" is checked in paragraph 3L(1), obtaining any loan specified is NOT a contingency of this Agreement. If Buyer does not obtain the loan specified, and as a result is unable to purchase !he Property, Seller may be entitled to Buyer's deposit or other legal remedies.
B. APPRAISAL:
(1) This Agreement is, unless otherwise specified in paragraph 3L(2) or an attached CR form, contingent upon a written appraisal of lhe Property by a licensed or certified appraiser al no less than the amount specified in paragraph 3L(2), without requiring repairs or improvements to the Property. Appraisals are often a reliable source to verify square footage of the subject Property. However, the ability to cancel based on the measurements provided in an appraisal falls within the Investigation of Property contingency. The appraisal contingency is solely limited to the value determined by the appraisal.
For any cancellation based upon this appraisal contingency, Buyer shall Deliver a Copy of the written appraisal to Seller, upon request by Seller.
(2) NO APPRAISAL CONTINGENCY: If "No appraisal contingency" is checked in paragraph 3L(2), then Buyer may not use the loan contingency specified in paragraph 3L(1) to cancel this Agreement if the sole reason for not obtaining the loan is that the appraisal relied upon by Buyer's lender values the property at an amount less than that specified in paragraph 3L(2). If Buyer is unable to obtain the loan specified solely for this reason, Seller may be entitled to Buyer's deposit or other legal remedies.
C. INVESTIGATION OF PROPERTY: This Agreement is, as specified in paragraph 3L(3), contingent upon Buyer's acceptance of the condition of, and any other matter affecting, the Property.
D. REVIEW OF SELLER DOCUMENTS: This Agreement is, as specified in paragraph 3L{4), contingent upon Buyer's review of Seller's documents required in paragraph 16A.
E. TITLE:
(1) This Agreement is, as specified in paragraph 3L(S), contingent upon Buyer's ability to obtain the title policy provided for in paragraph 16G and on Buyer's review of a current Preliminary Report and items that are disclosed or observable even if not on record or not specified in the Preliminary Report, and satisfying Buyer regarding the current status of title. Buyer is advised to review all underlying documents and other matters affecting title, including, but not limited to, any documents or deeds referenced in the Preliminary Report and any plotted easements. (2) Buyer has 5 Days after receipt to review a revised Preliminary Report, if any, furnished by the Title Company and cancel the transaction if the revised Preliminary Report reveals material or substantlal deviations from a previously provided Preliminary Report.
F. CONDOMINIUM/PLANNED DEVELOPMENT DISCLOSURES (IF APPLICABLE): This Agreement is, as specified in paragraph 3L(6), contingent upon Buyer's review of Common Interest Disclosures required by Civil Code § 4525 and under paragraph 11C ("Cl Disclosures'). {=)
CPA REVISED 12/21 (PAGE 5 OF 17) Buyer's Initials ___ ___ Seller's Initials ___ ___ ~ COMMERCIAL PURCHASE AGREEMENT AND JOINT ESCROW INSTRUCTIONS (CPA PAGE 5 OF 17) Produced v.ilh Lone WolfTransacllons (zlpFormEdi~on)717 N HalWOOd Sl Suite 2200, Dallos, TX 75201 wy,w t,wH com
Property Address: 11277 Garden Grove Blvd. Garden Grove CA, Garden Grove, Date: July_ 1. 2022 G. BUYER REVIEW OF LEASED OR LIENED ITEMS CONTINGENCY: Buyer's review of and ability=a""n""cf....;w""i,:;;lh..:;.ng=n=-e-s_s_,,t-□-a-s-su_m_e any lease, maintenance agreement or other ongoing financial obligation, or to accept the Property subject to any lien, disclosed pursuant to paragraph 98(6), is, as specified in paragraph 3L(7), a contingency of this Agreement. Any assumption of the lease shall not require any financial obligation or contribution by Seller. Seller, after first Delivering a Notice to Buyer to Peliorm, may cancel this Agreement if Buyer. by the time specified in paragraph 3L(7), refuses to enter into any necessary written agreements to accept responsibility for all obligations of Seller disclosed leased or Uened items.
H. REMOVAL OR WAIVER OF CONTINGENCIES WITH OFFER: Buyer shall have no obligation to remove a contractual contingency unless Seller has provided all required documents, reports, disclosures, and information pertaining to that contingency. If Buyer does remove a contingency without first receiving all required infonnation from Seller, Buyer is relinquishing any contractual rights that apply lo that contingency. If Buyer removes or waives any contingencies without an adequate understanding of the Property's condition or Buyer's ability to purchase, Buyer is acting against the advice of Agent.
I. REMOVAL OF CONTINGENCY OR CANCELLATION:
(1) For any contingency specified In paragraph 3L or 8, Buyer shall, within the applicable period specified, remove the contingency or cancel this Agreement.
(2) For the contingencies for review of Seller Documents, Preliminary Report, and Condominium/Planned Development Disclosures, Buyer shall, within the time specified in paragraph 3L or 5 Days after receipt of the applicable Seller Documents, Preliminary Report, or Cl Disclosures, whichever occurs later, remove the applicable contingency in writing or cancel this Agreement.
(3) If Buyer does not remove a contingency within the time specified, Seller, after first giving Buyer a Notice to Buyer to Perform (C.A.R. Form NBP), shall have the right lo cancel this Agreement.
J. SALE OF BUYER'S PROPERTY: This Agreement and Buye~s ability to obtain financing are NOT contingent upon the sale of any property owned by Buyer unless the Sale of Buyer's Property (C.A.R. Form COP) is checked as a contingency of this Agreement in paragraph 3L(8).
9. ITEMS INCLUDED IN AND EXCLUDED FROM SALE:
A. NOTE TO BUYER AND SELLER: Items listed as included or excluded in the Multiple Listing Service (MLS), flyers, marketing materials, or disclosures are NOT included in the purchase price or excluded from the sale unless specified in this paragraph or paragraph 3P or as Otherwise Agreed. Any items included herein are components of the Property and are not intended to affect the price. All items are transferred without Seller warranty.
B. ITEMS INCLUDED IN SALE:
(1) AU EXISTING fixtures and fittings that are attached to the Property; (2) EXISTING electrical, mechanical, lighting, plumbing and heating fixtures, ceiling fans, fireplace inserts, gas logs and grates, solar power systems, built-in appliances and appliances for which special openings or encasements have been made {whether or not included in paragraph 3P), window and door screens, awnings, shutters, window coverings (which includes blinds, curtains, drapery, shutters or any other materials that cover any portion of the window), attached floor coverings, television antennas, satellite dishes, air coolers/conditioners, pool/spa equipment (including, but not limited to, any cleaning equipment such as motorized/automatic pool cleaners, pool nets, pool covers), garage door openers/remote controls, mailbox, in-ground landscaping, water features and fountains, water softeners, water purifiers, light bulbs {including smart bulbs) and all items specified as included in paragraph 3P, if currently existing and owned by Seller at the time of Acceptance.
Note: If Seller does not intend to include any item specified as being included above because it is not owned by Seller, whether placed on the Property by Agent, stager, tenant. or other third party, the item should be listed as being excluded in paragraph 3P(2) or excluded by Seller in a counter offer. (3) Security System includes any devices, hardware, software, or control units used to monitor and secure the Property, including but not limited to, any motion detectors, door or window alarms, and any other equipment utilized for such purpose. If checked in paragraph 3P, all such items are included in the sale, whether hard wired or not. Buyer is advised to use paragraph 3P(1) or an addendum lo address more directly specific items to be included. Seller is advised to use a counter offer to address more directly any items to be excluded. (4) Home Automation (Smart Home Features) includes any electronic devices and features including, but not limited to, thermostat controls, kitchen appliances not otherwise excluded, and lighting systems, that are connected {hard wired or wirelessly) to a control unit. computer, tablet, phone, or other "smart" device. Any Smart Home devices and features that are physically affixed to the real property, and also existing light bulbs, are included in the sale. Buyer is advised to use paragraph 3P(1) or an addendum to address more directly specific items to be included. Seller is advised to use a counter offer to address more directly any items to be excluded. (5) Non-Dedicated Devices: All smart home and security system control devices are included in the sale, except for any non dedicated personal computer, tablet. or phone used to control such features. Buyer acknowledges that a separate device and access to wifi or Internet may be required to operate some smart home features and Buyer may have to obtain such device after Close Of Escrow. Buyer is advised to change all passwords and ensure the security of any smart home features. (6) LEASED OR LIENED ITEMS AND SYSTEMS: Seller, within the lime specified in paragraph 3N(1), shall (l) disclose to Buyer if any item or system specified in paragraph 3P or 9B or otherwise included in the sale is leased, or not owned by Seller, or is subject to any maintenance or other ongoing financial obligation, or specifically subject to a lien or other encumbrance or loan, and (ii) Deliver to Buyer all written materials (such as lease, warranty, financing, etc.) concerning any such item.
(7) Seller represents that all items included in the purchase price, unless Otherwise Agreed, (i) are owned by Seller and shall be transferred free and clear of liens and encumbrances. except the items and systems identified pursuant to paragraph 98(6), and {Ii) are transferred without Seller warranty regardless of value. Seller shall cooperate with the identification of any software or applications and Buye~s efforts to transfer any services needed to operate any Smart Home Features or other items included in this Agreement, including, but not limited to, utilities or security systems. (8) A complete inventory of all personal property of Seller currently used in the operation of the Property and included in the purchase price shall be delivered to Buyer within the lime specified in paragraph 3N(1 ). (9) Seller shall deliver title to the personal property by Bill of Sale, free of all liens and encumbrances, and without warranty of condition.
(10) As additional security for any note in favor of Seller for any part of the purchase price, Buyer shall execute a UCC-1 Financing Statement to be filed with the Secretary of State, covering the personal property included in the purchase, replacement thereof, and insurance proceeds. 1s)
CPA REVISED 12121 (PAGE 6 OF 17) Buyer's Initials ___ ___ Seller's Initials ___ ___ ~ COMMERCIAL PURCHASE AGREEMENT AND JOINT ESCROW INSTRUCTIONS {CPA PAGE 6 OF 17) Produce<! w~h Lon• Wolf Tron .. ctiono (zipForm Edl~on) 717 N H•rwcod St, Suite 2200, Dallas, TX 75201 w,m lwpl( sgm
Property Address: 11277 Garden Grove Blvd, Garden Grove CA, Garden Grove, Date: =J-=-u'-!'ly_1;;..r,,,.,;:2:..a0.;;a2;=,2 ___ _,,,,_ C. ITEMS EXCLUDED FROM SALE: Unless Otherwise Agreed, the following Iiams are excluded from sale: (i) All items specified in paragraph 3P(2); (ii) audio and video components (such as flat screen TVs, speakers and other items} if any such item is not itself attached to the Property, even if a bracket or other mechanism attached to the component or item Is attached to the Property; (111) furniture and other items secured to the Property for earthquake or safety purposes. Unless otherwise specified in paragraph 3P(1), brackets attached to walls, floors or celllngs for any such component, furniture or item will be removed and holes or other damage shall be repaired, but not painted.
10. ALLOCATION OF COSTS:
A. INSPECTIONS, REPORTS ANO CERTIFICATES: Paragraphs 3Q(1-3), and (5) only determines who is to pay for the inspection, test, certificate or service ("Report") mentioned; it does not determine who is to pay for any work recommended or Identified in the Report. Agreements for payment of required work should be specified elsewhere in paragraph 3Q, or 3S, or in a separate agreement (such as C.A.R. Forms RR, RRRR, ADM or AEA).
B. GOVERNMENT REQUIREMENTS AND CORRECTIVE OR REMEDIAL ACTIONS:
{1) LEGALLY REQUIRED INSTALLATIONS AND PROPERTY IMPROVEMENTS: Any required installation of smoke alarm or carbon monoxide device(s) or securing of water heater shall be completed within the time specified in paragraph 3N(4). If Buyer is to pay for these items, Buyer, as instructed by Escrow Holder, shall deposit funds into escrow or directly to the vendor completing the repair or installation, Prior to Close Of Escrow, Seller shall Deliver to Buyer written statement(s) of compliance in accordance with any Law, unless Seller is exempt. If Seller is to pay for these items and does not fulfill Seller's obligation in the time specified, and Buyer incurs costs to comply with lender requirements concerning those items, Seller shall be responsible for Buyer's costs. (2) POINT OF SALE REQUIREMENTS:
(A) Point of sale inspections, reports and repairs refer to any such actions required to be completed before or after Close Of Escrow that are required in order lo close under any Law. Unless Parties Otherwise Agree to another time period, any such repair, shall be completed prior to final verification of Property. If Buyer agrees to pay for any portion of such repair, Buyer, shall (i) directly pay to the vendor completing the repair or (ii) provide an invoice to Escrow Holder, deposit funds into escrow sufficient to pay for Buyer's portion of such repair and request Escrow Holder pay the vendor completing the repair.
(B) Buyer shall be provided, within the time specified in paragraph 3N(1), unless Parties Otherwise Agree to anoU,er time period. a Copy of any required government-conducted or point-of-sale inspection report prepared pursuant to this Agreement or in anticipation of this sale of the Property. (3) REINSPECTION FEES: If any repair in paragraph 108(1) is not completed within the time specified and the lender requires an additional inspection to be made, Seller shall be responsible for any corresponding reinspection fee. If Buyer incurs costs to comply with lender requirements concerning those Items, Seller shall be responsible for those costs. (4) INFORMATION AND ADVICE ON FEATURES:
(A) The following installations shall be completed prior to final verification of condition unless Otherwise Agreed: (i) approved fire extinguisher(s), sprinkler(s), and hose(s), if required by law; and (II) drain cover and anti-entrapment device or system meeting the minimum requirements permitted by the U.S. Consumer Products and Safety Commission for any pool or spa.
(B) If Buyer is to pay for these installations, Buyer, as instructed by Escrow Holder, shall deposit funds into escrow or directly to the vendor completing the repair or installation. (5) INFORMATION AND ADVICE ON REQUIREMENTS: Buyer and Seller are advised to seek information from a knowledgeable source regarding local and State mandates and whether they are point of sale requirements or requirements of ownership.
Agents do not have expertise in this area and cannot ascertain all of the requirements or costs of compliance.
11. SELLER DISCLOSURES
A. WITHHOLDING TAXES: Buyer and Seller hereby instruct Escrow Holder to withhold the applicable required amounts to comply wlth federal and California withholding Laws and forward such amounts to the Internal Revenue Service and Franchise Tax Board, respectively. However, no federal withholding is required if, prior to Close Of Escrow, Seller Delivers (i) to Buyer and Escrow Holder a fully completed affidavit {C.A.R. Form AS) sufficient to avoid withholding pursuant to federal withholding Law (FIRPTA); OR (ii) to a qualified substitute {usually a utle company or an independent escrow company) a fully completed affidavit (C.A.R. Form AS) sufficient to avoid withholding pursuant to federal withholding Law AND the qualified substitute Delivers to Buyer and Escrow Holder an affidavit signed under penalty of perjury (C.A.R. Form QS) that the qualified substitute has received the fully completed Seller's affidavit and the Seller slates that no federal withholding is required; OR (iii) to Buyer other documentation satisfying the requirements under Internal Revenue Code § 1445 (FIRPTA). No withholding is required under California Law ff, prior to Close Of Escrow, Escrow Holder has received sufficient documentation from Seller Iha! no withholding is required, and Buyer has been informed by Escrow Holder.
B. NOTICE REGARDING GAS AND HAZARDOUS LIQUID TRANSMISSION PIPELINES: This notice is being provided simply to inform you that information about the general location of gas and hazardous liquid transmission pipelines is available to the public via the National Pipeline Mapping System (NPMS) Internet Web site maintained by the United States Department of Transportation at http://www.npms.phmsa.dot.gov/. To seek further information about possible transmission pipelines near the Property, you may contact your local gas utility or other pipeline operators in the area. Contact information for pipeline operators is searchable by Zf P Code and county on the NPMS Internet Website. (Neither Seller nor Agent are required to check this website. If Buyer wants further information, Agent recommends that Buyer obtain information from this website during Buyer's investigation contingency period. Agents do not have expertise in this area.) C. CONDOMINIUMIPLANNED DEVELOPMENT DISCLOSURES:
(1) Seller shall, within the lime specified in paragraph 3N(1), disclose to Buyer whether the Property is a condominium or is located in a planned development, other common Interest development, or otherwise subject to covenants, conditions, and restrictions (C.A.R. Form SPQ or ESD).
(2) If the Property is a condominium or is located in a planned development or other common interest development with a DA, Seller shall, within the lime specified in paragraph 3N(3), order from, and pay any required fee for the following items to the OA (CAR. Form HOA-IR): (i) Copies of any documents required by Law (C.A.R. Form HOA-RS); (ii) disclosure of any pending or anticipated claim or litigation by or against the OA: (iii) a statement containing the location and number of designated parking and storage spaces; (iv) Copies of the most recent 12 months of OA minutes for regular and special meetings; (v) the names and contact information of all OAs governing the Property; {vi) pet restrictions; and (vii) smoking restrictions ("Cl Disclosures"). Seller shall itemize and Deliver to Buyer all Cl Disclosures received from the OA and any Cl Disclosures in Seller's possession. Seller shall, as directed by Escrow Holder, deposit funds into escrow or direct to OA or management company to pay for any of the above. 1'.=)
CPA REVISED 12121 (PAGE 7 OF 17) Buyer's Initials ___ ___ Seller's Initials ___ ___ ~"":" COMMERCIAL PURCHASE AGREEMENT AND JOINT ESCROW INSTRUCTIONS (CPA PAGE 7 OF 17) Produced wilh Lone Wolf Transaclicns (zipForm EdiUon) 717 N Harwood St, Sulle 2200, Oa~as, TX 75201 www !Mirr cpm G11nSenCron
Property Address: 11277 Garden Grove Blvd. Garden Grove CA, Garden Grove. Date: -=-J=-u,..ly_1:.L,.=2c:c0=-2=-2 ____ _ D. NATURAL AND ENVIRONMENTAL HAZARDS: Seller shall, within the time specified in paragraph 3N(1 ), if requ Ired by Law:
(I) Deliver to Buyer the earthquake guide and environmental hazards booklet, and for all residential property with 1-4 units and any manufactured or mobile home built before January 1, 1960, fully complete and Deliver the Residential Earthquake Risk Disclosure Statement: and (ii) even if exempt from the obligation to provide a NHD, disclose if the Property is located in a Special Flood Hazard Area; Potential Flooding (Inundation) Area; Very High Fire Hazard Zone; State Fire Responsibility Area; Earthquake Fault Zone; Seismic Hazard Zone; and (Iii) disclose any other zone as required by Law and provide any other information required for those zones.
E. WATER CONSERVING PLUMBING DEVICES: Civil Code § 1101.5 requires all multi-family residential and commercial real property be equipped with water-conserving plumbing devices. Seller shall, within the lime specified in paragraph 3N(1), disclose in writing whether !he property includes any noncompliant plumbing fixtures. Seller may use C.A.R. Form SPQ or ES□. See C.A.R. Form WCMD for more information.
F. SURVEY, PLANS, AND ENGINEERING DOCUMENTS: Seller, within the time specified in paragraph 3N(1), shall provide to Buyer, Copies of surveys, plans, specifications, and engineering documents. if any, prepared on Seller's behalf on in Seller's possession.
G. PERMITS: Seller, within the time specified in paragraph 3N(1), shall provide to Buyer, if in Seller's possession, copies of all permits and approvals, certificates of occupancy, conditional use permits, development plans, and licenses and permits pertaining to the operation of the Property.
H. STRUCTURAL MODIFICATIONS: Seller, within the time specified in paragraph 3N(1), shall in writing disclose lo Buyer, known structural additions or alterations to, or the installation, alteration, repair or replacement of, significant components of the structure{s) upon the Property.
I. GOVERNMENTAL COMPLIANCE: Within the time specified in paragraph 3N(1), (1) Seller shall disclose to Buyer any improvements, additions, alterations, or repairs to the Property made by Seller, or known to Seller to have been made, without required governmental permits, final inspections, and approvals (2) Seller shall disclose to Buyer if Seller has actual knowledge of any notice of violations of Law filed or issued against the Property.
J. VIOLATION NOTICES: Within the time specified in paragraph 3N(1 ), Seller shall disclose any notice of violations of any Law filed or issued against the Property and actually known to Seller K. KNOWN MATERIAL FACTS: Seller shall, within the time specified in paragraph 3N(1), DISCLOSE KNOWN MATERIAL FACTS AND DEFECTS affecting the Property, including, but not limited to, known insurance claims within the past five years, or provide Buyer with permission to contact lender to gel such information (C.A.R. Form ARC), and make any and all other disclosures required by Law.
L. SUBSEQUENT DISCLOSURES: In the event Seller. prior to Close Of Escrow, becomes aware of adverse conditions materially affecting the Property, or any material inaccuracy in disclosures, information, or representations previously provided to Buyer, Seller shall promptly Deliver a subsequent or amended disclosure or notice, in writing, covering those items. However, a subsequent or amended disclosure shall not be required for conditions and material inaccuracies of which Buyer Is otherwise aware or which are disclosed in reports provided to or obtained by Buyer or ordered and paid for by Buyer.
12. TENANCY RELATED DISCLOSURES: Within the time specified in paragraph 3N(1 ), and subject to Buyer's right of review, Seller shall disclose, make available or Deliver, as applicable, to Buyer, the following information:
A. RENTAUSERVICE AGREEMENTS: (i} All current leases, rental agreements, service contracts, and other agreements pertaining to the operation of the Property; (ii) A rental statement including names of tenants, rental rates, period or rental, dale of last rent increase, security deposits, rental concessions, rebates or other benefits, if any, and a list of delinquent rents and their duration.
Seller represents that no tenant is entitled to any rebate, concession, or other benefit, except as set forth in these documents.
Seller represents that the documents to be furnished are those maintained in the ordinary and normal course of business.
B. INCOME AND EXPENSE STATEMENTS: If checked in paragraph 3R, the books and records for the Property, if any, including a statement of income and expense for the 12 months preceding Acceptance. Seller represents that the books and records are those maintained in !he ordinary and normal course of business and used by Seller in the computation of federal and state income tax returns.
C. TENANT ESTOPPEL CERTIFICATES: If checked in paragraph 3R, Tenant Estoppal Certificates (C.A.R. form TEC). Tenant Estoppel Certificates shall be completed by Seller or Seller's agent and delivered to tenant(s) for tenant(s) to sign and acknowledge: (i) that tenant(s)' rental or lease agreements are unmodified and in full force and effect, (or if modified, stating all such modifications); (ii) that no lessor defaults exist; and (iii) stating the amount of any prepaid rent or security deposit. Seller shall exercise good faith to obtain lenanl(s)' signature{s), but Seller cannot guarantee tenant(s)' cooperation. In the event Seller cannot obtain signed Tenant Estoppel Certificates within the time specified above, Seller shall notify Buyer and provide the unsigned one that was provided to tenant(s). If, after the lime specified for Se11er to Deliver the TEC to Buyer, any tenant(s) sign and return a TEC to Seller, Seller shall Deliver that TEC to Buyer.
D. SELLER REPRESENTATIONS: Unless otherwise disclosed under paragraph 11, paragraph 12, or under any disclosure Delivered to Buyer:
(1) Seller represents that Seller has no actual knowled~e that any tenant(s): (I) has any current pending lawsuit(s), investigalion(s), lnquiry(ies), action(s), or other proceedmg{s) affecting the Property of the right to use and occupy it; (ii) has any unsatisfied mechanics or materialman lien(s) affecting the Property; and (iii) is the subject of a bankruptcy. If Seller receives any such notice, prior to Close Of Escrow, Seller shall immediately notify Buyer. (2) Seller represents that no tenant is entitled to any rebate, concessions, or other benefit, except as set forth in the rental service agreements.
(3) Seller represents that the documents to be furnished are those maintained in the ordinary and normal course of business and the income and expense statements are and used by Seller in the computation of federal and state income tax returns.
13. CHANGES DURING ESCROW:
A. Prior to Close Of Escrow, Seller may engage in the following acts ("Proposed Changes"), subject to Buyer's rights in paragraph 13B: (i) rent or lease any vacant unit or other part of the premises; (ii) alter, modify, or extend any existing rental or lease agreement; (iii) enter into, alter, modify, or extend any service contract(s); or (iv) change the status of the condition of the Property.
B. (1) At least 7 Days prior to any Proposed Changes, Seller shall Deliver written notice to Buyer of such Proposed Change (2) Within 5 Days after receipt of such notice, Buyer, in writing, may give Seller notice of Buyer's objection to the Proposed Changes in which case Seller shall not make the Proposed Changes.
14. SECURITY DEPOSITS: Security deposits, if any, to the extent they have not been applied by Seller in accordance with any rental agreement and current Law, shall be transferred to Buyer on Close Of Escrow. Seller shall notify each tenant, in compliance with the California Civil Code. ~
CPA REVISED 12{21 (PAGE 8 OF 17) Buyer's Initials ___ / ___ Seller's Initials _____ / ___ 1.:1 '"""'""""""' COMMERCIAL PURCHASE AGREEMENT AND JOINT ESCROW INSTRUCTIONS (CPA PAGE 8 OF 17) ~ Producea with lone Wolf Transacllons (zlpForm Edition) 717 N Harwood SI, Suile 220□, Dallas. TX 752□1 Jr1iYOY lwotf a,m Garden Groni
Property Address: 112n Garden Grove Blvd. Garden Grove CA, Garden Grove, Date: ~J=u~ly_1=•-2=0=22=c._ ____ _
15. BUYER'S INVESTIGATION OF PROPERTY AND MATTERS AFFECTING PROPERTY:
A. Buyer shall, within the time specified In paragraph 3L(3), have the right, at Buyer's expense unless Otherwise Agreed, to conduct inspections. investigations, tests, surveys and other studies {"Buyer Investigations").
B. Buyer Investigations include, but are not limited to:
(1) Inspections regarding any physical attributes of the Property or Jtems connected to the Property, such as:
{A) A general inspection.
{B) An inspection for lead-based paint and other lead-based paint hazards. (C) An Inspection specifically for wood destroying pests and organisms. Any inspection for wood destroying pests and organisms shall be prepared by a registered Structural Pest Control company; shall cover the main building and attached structures; may cover detached structures; shall NOT include water tests of shower pans on upper level units unless the owners of property below the shower consent; shall NOT include roof coverings; and, if the Property is a unit in a condominium or other common interest subdivision, the inspection shall include only the separate interest and any exclusive-use areas being transferred, and shall NOT include common areas; and shall include a report ("Pest Control Report") showing the findings of the company which shall be separated into sections for evident infestation or infections (Section 1) and for conditions likely to lead to infestation or infection (Section 2). (D) A phase one environmental survey, paid for and obtained by the party indicated in paragraph 3Q(2). If Buyer is responsible for obtaining and paying for the survey, Buyer shall act diligently and in good faith to obtain such survey within the time specified in paragraph 3L(3). Buyer has 5 Days after receiving the survey to remove this portion of the Buyer's Investigation contingency.
(2) All other Buyer Investigations, such as insurance, not specified above. See, Buyer's Investigation Advisory (C,A.R. Form BIA) for more.
(3) A review of reports, disclosures or information prepared by or for Seller and Delivered lo Buyer pursuant to paragraphs 3, 10, 11, 12, and 16A.
C. Without Seller's prior written consent, Buyer shall neither make nor cause to be made: (i) invasive or destructive Buyer Investigations, except for minimally invasive testing required to prepare a Pest Control Report, which shall not include any holes or drilling through stucco or similar material; or (ii) inspections by any governmental building or zoning inspector or government employee, unless required by Law.
D. Seller shall make the Property available for all Buyer Investigations. Seller is not obligated to move any existing personal property.
Seller shall have water, gas, electricity and all operable pilot lights on for Buyer's Investigations and through the date possession is delivered to Buyer. Buyer shall, (1) by the time specified in paragraph 3L{3), complete Buyer Investigations and satisfy themselves as to the condition of the Property, and either remove the contingency or cancel this Agreement. and (ii) by the time specified in paragraph 3L(3) or 3 Days after receipt of any Investigation report, whichever is later, give Seller at no cost, complete Copies of all such reports obtained by Buyer, which obligatlon shall survive the termination of this Agreement. This Delivery of Investigation reports shall not include any appraisal, except an appraisal received in connection with an FHA or VA loan.
E. Buyer indemnity and Seller protection for entry upon the Property: Buyer shall: {i) keep the Property free and clear of liens; (ii) repair all damage arising from Buyer Investigations; and (ill) indemnify and hold Seller harmless from all resulting liability, claims, demands, damages and costs. Buyer shall carry, or Buyer shall require anyone acting on Buyer's behalf to carry, policies of liability, workers' compensation and other applicable insurance, defending and protecting Seller from liability far any injuries to persons or property occurring during any Buyer Investigations or work done on the Property at Buyer's direction prior to Close Of Escrow. Seller is advised that certain protections may be afforded Seller by recording a "Notice of Non-Responsibility" (C.A.R. Form NNR) for Buyer Investigations and work done on the Property at Buyer's direction. Buyer's obligations under this paragraph shall survive the termination of this Agreement.
16. TITLE AND VESTING:
A. Buyer shall, within the time specified in paragraph 3N(1), be provided a current Preliminary Report by the person responsible for paying for the title report in paragraph 3Q(8), If Buyer is responsible for paying, Buyer shall act diligently and in good faith to obtain such Preliminary Report within the time specified. The Preliminary Report is only an offer by the title insurer to issue a policy of title insurance and may not contain every item affecting title. The company providing the Preliminary Report shall, prior to issuing a Preliminary Report, conduct a search of the General Index for all Sellers except banks or other institutional lenders selling properties they acquired through foreclosure (REOs), corporations, and government entities.
B. Tille is taken in its present condition subject to all encumbrances, easements, covenants, conditions, restrictions, rights and other matters, whether of record or not, as of the date of Acceptance except for: (i) monetary liens of record unless Buyer is assuming those obligations or taking the Property subject to those obligations; and (ii) those matters which Seller has agreed to remove in writing. For any lien or matter not being transferred upon sale, Seller will take necessary action to deliver title free and clear of such lien or matter.
C. Seller shall within 7 Days after request, give Escrow Holder necessary information to clear title.
D. Seller shall, within the time specified in paragraph 3N(1), disclose to Buyer all matters known to Seller affecting title, whether of record or not.
E. If Buyer Is a legal entity and the Property purchase price Is at least $300,000 and the purchase price Is made without a bank loan or similar form of external financing, a Geographic Targeting Order (GTO) issued by the Financial Crimes Enforcement Network, U.S. Department of the Treasury, requires title companies to collect and report certain information about the Buyer, depending on where the Property is located. Buyer agrees to cooperate with the title company's effort to comply with the GTO.
F. Buyer shall, after Close Of Escrow, receive a recorded grant deed or any other conveyance document required to convey title (For example, for stock cooperative or tenancy in common, respectively, an assignment of stock certificate or assignment of seller's interest in the real property), including oil, mineral and water rights if currently owned by Seller. Title shall vest as designated in Buyer's vesting instructions. The recording document shall contain Buyer's post-closing mailing address ta enable Buyer's receipt of the recorded conveyance document from the County Recorder. THE MANNER OF TAKING TITLE MAY HAVE SIGNIFICANT LEGAL AND TAX CONSEQUENCES. CONSULT AN APPROPRIATE PROFESSIONAL.
G. Buyer shall receive a Standard Coverage Owner's Cl TA policy of tiUe insurance. An AL TA policy or the addition of endorsements may provide greater coverage for Buyer. A title company, at Buyer's request, can provide information about the availability, desirability, coverage, and cost of various title insurance coverages and endorsements. If Buyer desires tiUe coverage other than that required by this paragraph, Buyer shall instruct Escrow Holder in writing and shall pay any increase in cost.
CPA REVISED 12/21 (PAGE 9 OF 17) Buyer's Initials ___ ___ Seller's lnltlals COMMERCIAL PURCHASE AGREEMENT AND JOINT ESCROW INSTRUCTIONS (CPA PAGE 9 OF 17) Producod with Lone Wo"Transactions (zipFo,m Edmon) 717 N Harwood St, Suire 2200, Dallas, TX 75201 WWW fwpflcom Garden Gr~~ e
Property Address: 11277 Garden Grove Blvd, Garden Grove CA, Garden Grove. Date: .::;.Juaa;l_,.y--=1""-'-=2"'-0=-22=--------
17. TIME PERIODS; REMOVAL OF CONTINGENCIES; CANCELLATION RIGHTS: The following time periods may only be extended, altered, modified or changed by mutual written agreement. Any removal of contingencies or cancellation under this paragraph by either Buyer or Seller must be exercised in good faith and In writing (C.A.R. Form CR or CC).
A. SELLER DELIVERY OF DOCUMENTS: Seller shall, within the lime specified in paragraph 3N(1 ). Deliver to Buyer all reports, disclosures and information ("Reports") for which Seller is responsible as specified in paragraphs 98(6), 9B(8), 10. 11A, 11C, 11 D, 11F.J, 11 K, 12, 16A, and 16D.
B. BUYER REVIEW OF DOCUMENTS; REPAIR REQUEST; CONTINGENCY REMOVAL OR CANCELLATION (1) Buyer has the time specified in paragraph 3 to perform Buyer Investigations; review all disclosures, reports, lease documents to be assumed by Buyer pursuant to paragraph 98(6), and other applicable information, which Buyer receives from Seller; and approve all matters affecting the Property. (2) Buyer may, within the time specified in paragraph 3L(3), request that Seller make repairs or take any other action regarding the Property (C.A.R. Form RR). Seller has no obligation to agree to or respond to Buyer's requests (C.A.R.
Form RR or RRRR). If Seller does nol agree or does not respond, Buyer is not contractually entitled to have the repairs or other requests made and may only cancel based on contingencies in this Agreement. (3) Buyer shall, by the end of the times specified in paragraph 3L (or as Otherwise Agreed), Deliver to Seller a removal of the applicable contingency or cancellation of this Agreement (C.A.R. Form CR or CC). However, if any report, disclosure, or information for which Seller is responsible is not Delivered within the time specified in paragraph 3N(1 ), then Buyer has 5 Days after Delivery of any such items, or the times specified in paragraph 3L, whichever is later, to Deliver to Seller a removal of the applicable contingency or cancellation of this Agreement. If Delivery of any Report occurs after a contractual contingency pertaining to that Report has already been waived or removed, the Delivery of the Report does not revive the contingency but there may be a right to terminate for a subsequent or amended disclosure under paragraph 11L.
(4) Continuation of Contingency: Even after the end of the lime specified in paragraph 3L and before Seller cancels, if at all, pursuant to paragraph 17C, Buyer retains the right, in writing, to either {I) remove remaining contingencies, or (II) cancel this Agreement based on a remaining contingency. Once Buyer's written removal of all contingencies is Delivered to Seller, Seller may not cancel this Agreement pursuant to paragraph 17C(1 ).
C. SELLER RIGHT TO CANCEL:
(1) SELLER RIGHT TO CANCEL; BUYER CONTINGENCIES: If, by the time specified in this Agreement, Buyer does not Deliver to Seller a removal of the applicable contingency or cancellation of this Agreement, then Seller, after first Delivering to Buyer a Notice to Buyer to Perform (C.A.R. Form NBP), may cancel this Agreement. In such event, Seller shall authorize the return of Buyer's deposit, except for fees incurred by Buyer. (2) SELLER RIGHT TO CANCEL; BUYER CONTRACT OBLIGATIONS: Seller, after first Delivering lo Buyer a Notice to Buyer lo Perform, may cancel this Agreement if, by the time specified in this Agreement, Buyer does not take the following action(s): (i) Deposit funds as required by paragraph 3D(1) or 30(2) or ff the funds deposited pursuant to paragraph 30(1) or 30(2) are not good when deposited; (Ii) Deliver updated contact information for Buyer's lender(s) as required by paragraph 5C(3); (iii) Deliver a notice of FHA or VA costs or terms, if any, as specified by paragraph 5C(5) {C.A.R. Form RR); (iv) Deliver verification, or a satisfactory verification if Seller reasonably disapproves of the verification already provided, as required by paragraph 5B or 6A; (v) Deliver a letter as required by paragraph 6B; (vi) In writing assume or accept leases or liens specified in paragraph 8G; (vii) Cooperate with the title company's effort to comply with the GTO as required by paragraph 16E; (viii) Sign or initial a separate liquidated damages form for an increased deposit as required by paragraph 5A(2) and 36; (lx) Provide evidence of authority to Sign in a representative capacity as specified in paragraph 35; or (x) Perform any additional Buyer contractual obligation(s) included in this Agreement. In such event, Seller shall authorize the return of Buyer's deposit, except for fees allocated to Seller in this Agreement and already paid by Escrow prior to cancellation of this Agreement and notification to Escrow. (3) SELLER RIGHT TO CANCEL; SELLER CONTINGENCIES: Seller may cancel this Agreement by good faith exercise of any Seller contingency included in this Agreement, or Otherwise Agreed, so long as that contingency has not already been removed or waived in writing.
D. BUYER RIGHT TO CANCEL:
(1) BUYER RIGHT TO CANCEL; SELLER CONTINGENCIES: If, by the time specified in this Agreement, Seller does not Deliver to Buyer a removal of the applicable contingency or cancellation of this Agreement, then Buyer, after first Delivering to Seller a Notice to Seller to Perform (C.A.R. Form NSP), may cancel this Agreement. In such event, Seller shall authorize the return of Buyer's deposit, except for fees allocated to Seller in the Agreement and already paid by Escrow prior to cancellation of this Agreement and notification to Escrow. (2) BUYER RIGHT TO CANCEL; SELLER CONTRACT OBLIGATIONS: If, by the time specified, Seller has not Delivered any item specified in paragraph 3N(1) or Seller has not performed any Seller contractual obligation included in this Agreement by the lime specified, Buyer, after first Delivering to Seller a Notice to Seller to Perform, may cancel this Agreement. (3) BUYER RIGHT TO CANCEL; BUYER CONTINGENCIES: Buyer may cancel this Agreement by good faith exercise of any Buyer contingency included in paragraph 8, or Otherwise Agreed, so long as that contingency has not already been removed in writing.
E. NOTICE TO BUYER OR SELLER TO PERFORM: The Notice to Buyer to Perform or Notice to Seller to Perform shall: (i) be in writing; (ii) be Signed by the applicable Buyer or Seller; and (iii) give the other Party al least 2 Days after Delivery (or until the lime specified in the applicable paragraph, whichever occurs last) to take the applicable action. A Notice to Buyer to Perform or Notice to Seller to Perform may not be Delivered any earlier than 2 Days prior to the Scheduled Performance Day to remove a contingency or cancel this Agreement or meet an obligation specified in paragraph 17, whether or not the Scheduled Performance Day falls on a Saturday, Sunday or legal holiday. If a Notice to Buyer to Perform or Notice to Seller to Perform is incorrectly Delivered or specifies a time less than the agreed time, the notice shall be deemed Invalid and void and Seller or Buyer shall be required to Deliver a new Notice to Buyer to Perform or Notice to Seller to Perform with the specified timeframe.
CPA REVISED 12/21 (PAGE 10 OF 17) Buyer's Initials ___ ___ Seller's Initials COMMERCIAL PURCHASE AGREEMENT AND JOINT ESCROW INSTRUCTIONS (CPA PAGE 10 OF 17) Produced wU~ Lone Wolf Transactions (zipForm Edition) 717 N Harwood St, Suite 2200, Dalla$, TX 76201 Wl(W lwol[ com Garden C,o,-·r
Property Address: 11277 Garden Grove Blvd. Garden Grove CA, Garden Grove, Date: =-J-=u""ly'-1::.,;,--=2:..a0-=2=-2 ____ _ F. EFFECT OF REMOVAL OF CONTINbENCIES:
(1) REMOVAL OF BUYER CONTINGENCIES: If Buyer removes any contingency or cancellation rights, unless Otherwise Agreed, Buyer shall conclusively be deemed to have: (i) completed all Buyer Investigations, and review of reports and other applicable information and disclosures pertaining to that contingency or cancellation right: (ii) elected to proceed with the transaction; and (iii) assumed all liability, responsibility and expense for the non-delivery of any reports, disclosures or information outside of Seller's control and for any Repairs or corrections pertaining to that contingency or cancellation right, or for the inability to obtain financing. (2) REMOVAL OF SELLER CONTINGENCIES: If Seller removes any contingency or cancellation rights, unless Otherwise Agreed, Seller shall conclusively be deemed to have: (i) satisfied themselves regarding such contingency, (ii) elected to proceed with the transaction; and {iii) given up any right ta cancel this Agreement based on such contingency.
G. DEMAND TO CLOSE ESCROW: Before Buyer or Seller may cancel this Agreement for failure of the other Party to close escrow pursuant to this Agreement, Buyer or Seller must first Deliver to the other Party a Demand to Close Escrow (C.A.R.
Form DCE). The DCE shall: (i) be Signed by the applicable Buyer or Seller; and (ii) give the other Party at least 3 Days after Delivery to close escrow. A DCE may not be Delivered any earlier than 3 Days prior to the Scheduled Performance Day for the Close Of Escrow. If a DCE is incorrectly Delivered or specifies a time less than the agreed time, the DCE shall be deemed invalid and void and Seller or Buyer shall be required to Deliver a new DCE.
H. EFFECT OF CANCELLATION ON DEPOSITS: If Buyer or Seller gives written notice of cancellation pursuant to rights duly exercised under the terms of this Agreement, the Parties agree to Sign and Deliver mutual instructions to cancel the sale and escrow and release deposits, if any, to the Party entitled to the funds, less (i) fees and costs paid by Escrow Holder on behalf of that Party, if required by this Agreement; and (ii) any escrow cancellation fee charged to that party. Fees and costs may be payable to service providers and vendors for services and products provided during escrow. A release of funds will require mutual Signed release instructions from the Parties, judicial decision or arbitration award. A Party may be subject to a civil penalty of up to $1,000 for refusal to Sign cancellation instructions If no good faith dispute exists as to which Party is entitled to the deposited funds (Civil Code§ 1057.3), Note: Neither Agents nor Escrow Holder are qualified to provide any opinion on whether either Party has acted In good faith or which Party Is entitled to the deposited funds. Buyer and Seller are advised to seek the advice of a qualified California real estate attorney regarding this matter,
18. REPAIRS: Repairs shall be completed prior to final verification of condition unless Otherwise Agreed. Repairs to be performed at Seller's expense may be performed by Seller or through others, provided that the work complies with applicable Law, including governmental permit, inspection and approval requirements. Repairs shall be performed in a good, skillful manner with materials of quality and appearance comparable to existing materials. Buyer acknowledges that exact restoration of appearance or cosmetic items following all Repairs may not be possible. Seller shall: (i) obtain invoices and paid receipts for Repairs performed by others; (Ii) prepare a written statement indicating the Repairs performed by Seller and the date of such Repairs; and (Iii) provide Copies of invoices and paid receipts and statements to Buyer prior to final verification of condition.
19. FINAL VERIFICATION OF CONDITION: Buyer shall have the right to make a final verification of the Property condition within the time specified in paragraph 3J, NOT AS A CONTINGENCY OF THE SALE, but solely to confirm: (i) the Property is maintained pursuant to paragraph 7B; {ii) Repairs have been completed as agreed; and (iii) Seller has complied with Seller's other obligations under this Agreement (C.A.R. Form VP).
20. PRORATIONS OF PROPERTY TAXES AND OTHER ITEMS: Unless Otherwise Agreed, the following items shall be PAID CURRENT and prorated between Buyer and Seller as of Close Of Escrow: real property taxes and assessments, interest, Seller rental payments, QA regular assessments due prior to Close Of Escrow, premiums on insurance assumed by Buyer, payments on bonds and assessments assumed by Buyer, and payments on Mello-Roos and other Special Assessment District bonds and assessments that are now a lien. Seller shall pay any OA special or emergency assessments due prior to Close Of Escrow. The following items shall be assumed by Buyer WITHOUT CREDIT toward the purchase price: prorated payments on Mello-Roos and other Special Assessment District bonds and assessments and OA special or emergency assessments that are due after Close Of Escrow. Property will be reassessed upon change of ownership. Any supplemental tax bills delivered to Escrow Holder prior to closing shall be prorated and paid as follows: (I) for periods after Close Of Escrow, by Buyer; and (ii) for periods prior to Close Of Escrow, by Seller (see C.A.R. Form SPT or SBSA for further information). Seller agrees all service fees, maintenance costs and utility bills will be paid current up and through the date of Close Of Escrow. TAX BILLS AND UTILITY BILLS ISSUED AFTER CLOSE OF ESCROW SHALL BE HANDLED DIRECTLY BETWEEN BUYER AND SELLER. Proralions shall be made based on a 30-day month.
21. BROKERS AND AGENTS:
A. COMPENSATION: Seller or Buyer, or both, as applicable, agree to pay compensation to Broker as specified in a separate written agreement between Broker and that Seller or Buyer. Compensation is payable upon Close Of Escrow, or if escrow does not close, as otherwise specified in the agreement between Broker and that Seller or Buyer.
B. SCOPE OF DUTY: Buyer and Seller acknowledge and agree that Agent: {i) Does not decide what price Buyer should pay or Seller should accept; (ii) Does not guarantee the condition of the Property; (iii) Does not guarantee the performance, adequacy or completeness of inspections, services, products or repairs provided or made by Seller or others: (iv) Does not have an obligation to conduct an inspection of common areas or areas off the site of the Property; (v) Shall not be responsible for identifying defects on the Property, in common areas, or offsite unless such defects are visually observable by an inspection of reasonably accessible areas of the Property or are known to Agent; (vi) Shall not be responsible for inspecting public records or permits concerning the title or use of Property; (vii) Shall not be responsible for identifying the location of boundary lines or other items affecting title; {viii) Shall not be responsible for verifying square footage, representations of others or information contained in Investigation reports, Multiple Listing Service, advertisements, flyers or other promotional material; (Ix) Shall not be responsible for determining the fair market value of the Property or any personal property included in the sale; (x) Shall not be responsible for providing legal or tax advice regarding any aspect of a transaction entered into by Buyer or Seller; and (xi) Shall not be responsible for providing other advice or information that exceeds the knowledge, education and experience required to perform real estate licensed activity.
Buyer and Seller agree to seek legal, tax, insurance, tiUe and other desired assistance from appropriate professionals.
C. BROKERAGE: Neither Buyer nor Seller has utilized the services of, or for any other reason owes compensation to, a licensed real estate broker {individual or corporate), agent, finder, or other entity, other than as specified in this Agreement, in connection with any act relating to the Property, Including, but not limited to, inquiries, introductions, consultations, and negotiations leading to this Agreement. Buyer and Seller each agree to indemnify and hold the other, the Brokers specified herein and their agents, harmless from and against any costs, expenses or liability for compensation claimed inconsistent with the warranty and representation in this paragraph. 1=)
CPA REVISED 12/21 (PAGE 11 OF 17) Buyer's Initials ___ ___ Seller's Initials ___ ___ ~ COMMERCIAL PURCHASE AGREEMENT AND JOINT ESCROW INSTRUCTIONS (CPA PAGE 11 OF 17) Produced wdh Lon& Woff Transactions (zipFormEdltlon) 717 N Harwood St, Su•• 2200, Dallas, TX 75201 www lwclf com
Property Address: 11277 Garden Grove Blvd, Garden Grove CA, Garden Grove, Date: =-J=ul.,.y....:1a1.,..=2=0=-22=---------
22. JOINT ESCROW INSTRUCTIONS TO ESCROW HOLDER:
A. The following paragraphs, or applicable portions thereof, of this Agreement constitute the joint escrow instructions of Buyer and Seller to Escrow Holder, which Escrow Holder is to use along with any related counter offers and addenda, and any additional mutual instructions to close the escrow: paragraphs 1, 3A, 3B, 3D-G, 3N(2), 3Q, 3S, 4A, 4B, 5A(1-2) 5D, 5E, 10B(2)(A), 108(3), 11A, 11C(2), 16 (except 16D), 17H, 20, 21A, 22, 26, 32, 33, 34, 35, 39, 40, and paragraph 3 of the Real Estate Brokers Section. If a Copy of the separate compensation agreement(s) provided for in paragraph 21A or paragraph 3 of the Real Estate Brokers Section is deposited with Escrow Holder by Agent. Escrow Holder shall accept such agreement(s) and pay out from Buyer's or Seller's funds, or both, as applicable, the Broker's compensation provided for in such agreement(s). The terms and conditions of this Agreement not set forth in the specified paragraphs are additional matters for the infom,ation of Escrow Holder, but about which Escrow Holder need not be concerned.
B. Buyer and Seller will receive Escrow Holder's general provisions, if any, directly from Escrow Holder. To the extent the general provisions are inconsistent or conflict with this Agreement, the general provisions will control as to the duties and obligations of Escrow Holder only. Buyer and Seller shall Sign and return Escrow Holder's general provisions or supplemental instructions within the time specified in paragraph 3N{2). Buyer and Seller shall execute additional instructions, documents and forms provided by Escrow Holder that are reasonably necessary to close the escrow and, as directed by Escrow Holder, within 3 Days, shall pay to Escrow Holder or QA or OA management company or others any fee required by paragraphs 3, 8, 10, 11, or elsewhere in this Agreement.
C. A Copy of this Agreement including any counter offer(s) and addenda shall be delivered to Escrow Holder within 3 Days after Acceptance. Buyer and Seller authorize Escrow Holder to accept and rely on Copies and Signatures as defined in this Agreement as originals, to open escrow and for other purposes of escrow. The validity of this Agreement as between Buyer and Seller is not affected by whether or when Escrow Holder Signs this Agreement. Escrow Holder shall provide Seller's Statement of Information to Title Company when received from Seller, if a separate company is providing title insurance. If Seller delivers an affidavit to Escrow Holder to satisfy Seller's FIRPTA obligation under paragraph 11A, Escrow Holder shall deliver to Buyer, Buyer's Agent. and Seller's Agent a Qualified Substitute statement that complies with federal Law. If Escrow Holder's Qualified Substitute statement does not comply with federal law, the Parties instruct escrow to withhold all applicable required amounts under paragraph 11A.
D. Agents are not a party to the escrow except for the sole purpose of receiving compensation pursuant to paragraph 21A and paragraph 3 of the Real Estate Brokers Section. If a Copy of the separate compensation agreement(s) provided for in either of those paragraphs is deposited with Escrow Holder by Agent, Escrow Holder shall accept such agreement(s) and pay out from Buyer's or Seller's funds, or both, as applicable, the Broker's compensation provided for in such agreement(s).Buyer and Seller irrevocably assign to Brokers compensation specified in paragraph 21A, and irrevocably instruct Escrow Holder to disburse those funds to Brokers at Close Of Escrow or pursuant to any other mutually executed cancellation agreement.
Compensation instructions can be amended or revoked only with the written consent of Brokers. Buyer and Seller shall release and hold harmless Escrow Holder from any liability resulting from Escrow Holder's payment to Broker(s) of compensation pursuant to this Agreement.
E. Buyer and Seller acknowledge that Escrow Holder may require invoices for expenses under this Agreement. Buyer and Seller, upon request by Escrow Holder, within 3 Days or within a sufficient time to close escrow, whichever is sooner, shall provide any such invoices to Escrow Holder.
F. Upon receipt, Escrow Holder shall provide Buyer, Seller, and each Agent verification of Buyer's deposit of funds pursuant lo paragraph 5A(1) and 5A(2). Once Escrow Holder becomes aware of any of the following, Escrow Holder shall immediately notify each Agent: (i) if Buyer's initial or any additional deposit or down payment is not made pursuant to this Agreement, or is not good at time of deposit with Escrow Holder; or (ii) if Buyer and Seller instruct Escrow Holder to cancel escrow.
G. A Copy of any amendment that affects any paragraph of this Agreement for which Escrow Holder is responsible shall be delivered to Escrow Holder within 3 Days after mutual execution of the amendment.
23. SELECTION OF SERVICE PROVIDERS: Agents do not guarantee the performance of any vendors, service or product providers ("Providers"), whether referred by Agent or selected by Buyer, Seller or other person. Buyer and Seller may select ANY Providers of their own choosing.
24. MULTIPLE LISTING SERVICE ("MLS"): Agents are authorized to report to the MLS that an offer has been accepted and, upon Close Of Escrow, the sales price and other terms of this transaction shall be provided to the M LS to be published and disseminated to persons and entities authorized to use the information on terms approved by the MLS. Buyer acknowledges that: (i) any pictures, videos, floor plans (collectively, "Images") or other information about the Property that has been or will be inputted into the MLS or internet portals, or both, at the instruction of Seller or in compliance with MLS rules, will not be removed after Close Of Escrow: (ii) California Civil Code § 1088(c) requires the MLS to maintain such Images and information for al least three years and as a result they may be displayed or circulated on the Internet, which cannot be controlled or removed by Seller or Agents; and (iii) Seller, Seller's Agent, Buyer's Agent, and MLS have no obligation or ability to remove such Images or information from the Internet.
25. ATTORNEY FEES AND COSTS: In any action, proceeding, or arbitration between Buyer and Seller arising out of this Agreement, the prevailing Buyer or Seller shall be entitled to reasonable attorney fees and costs from the non-prevailing Buyer or Seller, except as provided in paragraph 37 A.
26. ASSIGNMENT: Buyer shall have the right to assign all of Buyer's interest in this Agreement to Buyer's own trust or to any wholly owned entity of Buyer that is in existence at the time of such assignment. Otherwise. Buyer shall not assign all or any part of Buyer's interest in this Agreement without first having obtained the separate written consent of Seller to a specified assignee. Such consent shall not be unreasonably withheld. Prior to any assignment, Buyer shall disclose to Seller the name of the assignee and the amount of any monetary consideration between Buyer and assignee. Buyer shall provide assignee with all documents related to this Agreement including, but not limited to, the Agreement and any disclosures. If assignee is a wholly owned entity or trust of Buyer, that assignee does not need to re-sign or initial all documents provided. Whether or not an assignment requires seller's consent, at the time of assignment, assignee shall deliver a letter from assignee's lender that assignee is prequalified or preapproved as specified in paragraph 68. Should assignee fail to deliver such a letter, Seller, after first giving Assignee an Notice to Buyer to Perform, shall have the right to terminate the assignment. Buyer shall, within lhe time specified in paragraph 3K, Deliver any request to assign this Agreement for Seller's consent. lf Buyer fails to provide the required information within this time frame, Seller's withholding of consent shall be deemed reasonable. Any total or partial assignment shall not relieve Buyer of Buyer's obligations pursuant to this Agreement unless Otherwise Agreed by Seller (C.A.R. Form AOM).
27. SUCCESSORS AND ASSIGNS: This Agreement shall be binding upon, and inure to the benefit of, Buyer and Seller and their respective successors and assigns, except as otherwise provided herein. (=) CPA REVISED 12/21 (PAGE 12 OF 17) Buyer's Initials ___ ___ Seller's Initials ___ ___ ==' COMMERCIAL PURCHASE AGREEMENT AND JOINT ESCROW INSTRUCTIONS (CPA PAGE 12 OF 17) Produced with Lorre Wolf Tran1aclions (zipFom, Edition) 717 N Har.vood St, Suite 2200, Dalla,, TX 75201 www twolt oom
Property Address: 11277 Garden Grove Blvd Garden Grove CA, Garden Grove, Date: July 1. 2022
28. ENVIRONMENTAL HAZARD CONSULfAT/ON: Buyer and Seller acknowledge: (i) Federal, state, a=n"""d~lo~ca""-,'1-,-le=g=;.-is~la---,t~io-n--.-im_p_o_s_e liability upon existing and former owners and users of real property, in applicable situations, for certain legislatively defined, environmentally hazardous substances; (ii) Agent(s) has/have made no representation concerning the applicability of any such Law to this transaction or to Buyer or to Seller, except as otherwise indicated in this Agreement; (iii) Agenl(s) has/have made no representation concerning lhe existence, testing, discovery, location, and evaluation of/for, and risks posed by, environmentally hazardous substances, if any, located on or potentially affecting the Property; and (iv) Buyer and Seller are each advised to consult with technical and legal experts concerning the existence, testing, discover, location and evaluation of/for, and risks posed by, environmentally hazardous substances, in any, located on or potentially affecting the Property.
29. AMERICANS WITH DISABILITIES ACT: The Americans With Disabilities Act ("ADA") prohibits discrimination against individuals with disabilities. The ADA affects almost all commercial facilities and public accommodations. Residential properties are not typically covered by the ADA, but may be governed by its provisions if used for certain purposes. The ADA can require, among other things, that building be made readily accessible to the disabled. Different requirements apply to new construction, alterations to existing buildings, and removal of barriers in existing buildings. Compliance with the ADA may require signfficant costs. Monetary and injunctive remedies may be incurred if the Property is not in compliance. A real estate broker or agent does not have the technical expertise to determine whether a building is in compliance with ADA requirements, or to advise a principal on those requirements. Buyer and Seller are advised to contact a qualffied California real estate attorney, contractor, architect, engineer, or other qualified professional of Buyer or Seller's own choosing to determine to what degree, if any, the ADA Impacts that principal or this transaction.
30. EQUAL HOUSING OPPORTUNITY: The Property is sold in compliance with federal, state and local anti-discrimination Laws.
31. COPIES: Seller and buyer each represent that Copies of all reports, certificates, approvals, and other documents that are furnished to the other are true, correct, and unaltered Copies of the original documents, if the originals are in the possession of the furnishing party.
32. DEFINITIONS and INSTRUCTIONS: The following words are defined terms in this Agreement, shall be indicated by initial capital letters throughout this Agreement, and have the following meaning whenever used:
A. "Acceptance" means the time the offer or final counter offer is fully executed, in writing, by the recipient Party and is Delivered to the offering Party or that Party's Authorized Agent.
B. "Agent" means the Broker, salesperson, broker-associate or any other real estate licensee licensed under the brokerage firm identified in paragraph 2B.
C. "Agreement" means this document and any counter offers and any incorporated addenda or amendments, collectively forming the binding agreement between the Parties. Addenda and amendments are incorporated only when Signed and Delivered by all Parties.
D. "As-ls" condition: Seller shall disclose known material facts and defects as specified in this Agreement. Buyer has the right to inspect the Property and, within the time specified, request that Seller make repairs or lake other corrective action, or exercise any contingency cancellaUon rights in this Agreement. Seller is only required to make repairs specified in this Agreement or as Otherwise Agreed.
E. "Authorized Agent" means an individual real estate licensee specified in the Real Estate Broker Section.
F. "C.A.R. Form" means the most current version of the specific form referenced or another comparable form agreed to by the Parties.
G. "Close Of Escrow'', including 'COE", means the date the grant deed, or other evidence of transfer of title, is recorded for any real property, or the dale of Delivery of a document evidencing the transfer of title for any non-real property transaction.
H. "Copy" means copy by any means including photocopy, facsimile and electronic.
I. Counting Days is done as follows unless Otherwise Agreed: (1) The first Day after an event Is the first full calendar date following the event, and ending at 11: 59 pm. For example, if a Notice to Buyer lo Perform (C.A. R. form NBP) is Delivered at 3 pm on the 7th calendar day of the month, or Acceptance of a counter offer is personally received at 12 noon on the 7th calendar day of the month, then the 7th is Day "O" for purposes of counting days to respond to the NBP or calculating the Close Of Escrow date or contingency removal dates and the 8th of the month is Day 1 for those same purposes. (2) All calendar days are counted in establishing the first Day after an event. (3} All calendar days are counted in determining the date upon which performance must be completed, ending al 11 :59 pm on the last day for performance ("Scheduled Performance Day"). (4) After Acceptance, if the Scheduled Performance Day for any act required by this Agreement, including Close Of Escrow, lands on a Saturday, Sunday, or legal holiday, the performing party shall be allowed to perform on the next day that is not a Saturday, Sunday or legal holiday ("Allowable Performance Day"), and ending at 11 :59 pm. (5) For the purposes of COE, any day that the Recorder's office in the County where the Property is located is closed, the COE shall occur on the next day the Recorder's office in that County is open. (6) COE is considered Day O for purposes of counting days Seller is allowed to remain in possession, if permitted by this Agreement.
J. "Day" or "Days" means calendar day or days. However, delivery of deposit to escrow is based on business days.
K. "Deliver", "Delivered" or "Delivery" of documents, unless Otherwise Agreed, means and shall be effective upon personal receipt of the document by Buyer or Seller or their Authorized Agent. Personal receipt means (I) a Copy of the document, or as applicable, link to the document, is in the possession of the Party or Authorized Agent, regardless of the Delivery method used (i.e. e-mail, text, other), or (if) an Electronic Copy of the document, or as applicable, link ta the document, has been sent to any of the designated electronic delivery addresses specified in the Real Estate Broker Section on page 16. After Acceptance, Agent may change the designated electronic delivery address for that Agent by, in writing, Delivering notice of the change in designated electronic delivery address to the other Party. Links could be, for example, to DropBox or GoogleDrlve or other functionally equivalent program. If the recipient of a link is unable or unwilling to open the link or download the documents or otherwise prefers Delivery of the documents directly, Recipient of a link shall notify the sender in writing, within 3 Days after Delivery of the link {C.A.R. Form RFR). In such case, Delivery shall be effective upon Delivery of the documents and not the link. Failure lo notify sender within the time specified above shall be deemed consent to receive, and Buyer opening, the document by link.
L. "Electronic Copy" or "Electronic Signature" means, as applicable, an electronic copy or signature complying with California Law. Buyer and Seller agree that electronic means will not be used by either Party to modify or alter the content or integrity of this Agreement without the knowledge and consent of the other Party.
M. "Law" means any law, code, statute, ordinance, regulation, rule or order, which is adopted by a controlling city, county, state or federal legislative, judicial or executive body or agency.
N. "Legally Authorized Signer" means an individual who has authority to Sign for the principal as specified in paragraph 39 or paragraph 40.
0. "Otherwise Agreed" means an agreement in writing, signed by both Parties and Delivered lo each.
P. "Repairs" means any repairs (including pest control), alterations, replacements, modifications or retrofitting of the Property provided for under this Agreement.
Q. "Sign" or "Signed" means either a handwritten or Electronic Signature on an original document, Copy or any counterpart.
CPA REVISED 12/21 (PAGE 13 OF 17) Buyer's Initials ___ / ___ Seller's Initials ___ / COMMERCIAL PURCHASE AGREEMENT AND JOINT ESCROW INSTRUCTIONS (CPA PAGE 13 OF 17) 1:i:t ~~
Produced with Lone We" Tran>aclions (zipForm Edi lion) 717 N Harwood St, Suite 2200. Dallas, lX 75201 \lfll!W lwgW com C•rd'-11 Grove
Property Address: 112n Garden Grove Blvd, Garden Grove CA, Garden Grove, Date: "'J=-u:.zly-'1:..L'-::::2:.::.0.::;22=---....,....-.,....---
33. TERMS AND CONDITIONS OF OFFER: This is an offer to purchase the Property on the terms and conditions herein. The individual Liquidated Damages and Arbitration of Disputes paragraphs are incorporated in this Agreement if initialed by all Parties or if incorporated by mutual agreement in a Counter Offer or addendum. If at least one but not all Parties initial, a Counter Offer Is required until agreement is reached. Seller has the right to continue to offer the Property for sale and to accept any other offer at any time prior to notification cf Acceptance and to market the Property for backup offers after Acceptance. The Parties have read and acknowledge receipt of a Copy of the offer and agree to the confirmation of agency relationships. If this offer is accepted and Buyer subsequently defaults, Buyer may be responsible for payment of Brokers' compensation. This Agreement and any supplement, addendum or modification, including any Copy, may be Signed in two or more counterparts, all of which shall constitute one and the same writing. By signing this offer or any document in the transaction, the Party Signing the document is deemed to have read the document in its entirely.
34. TIME OF ESSENCE; ENTIRE CONTRACT; CHANGES: Time is of the essence. All understandings between the Parties are incorporated in this Agreement. Its terms are intended by the Parties as a final, complete and exclusive expression of their Agreement with respect to its subject matter and may not be contradicted by evidence of any prior agreement or contemporaneous oral agreement. If any provision of this Agreement is held le be ineffective or invalid, the remaining provisions will nevertheless be given full force and effect. Except as Otherwise Agreed, this Agreement shall be interpreted, and disputes shall be resolved in accordance with the Laws of the State cf California. Neither this Agreement nor any provision In It may be extended, amended, modified, altered or changed, except In writing Signed by Buyer and Sellar.
35. LEGALLY AUTHORIZED SIGNER: Wherever the signature or initials of the Legally Authorized Signer identified in paragraph 39 or 40 appear on this Agreement or any related documents, it shall be deemed to be in a representative capacity for the entity described and not in an individual capacity, unless otherwise indicated. The legally Authorized Signer (i) represents that the entity for which that person is acting already exists and is in good standing to do business in California and (ii) shall Deliver to the other Party and Escrow Holder, as specified in paragraph 3N(5), evidence of authority to act in that capacity (such as but not limited to:
applicable portion of the trust or Certification Of Trust (Probate Code § 18100.5), letters testamentary, court order, power of attorney, corporate resolution, or formation documents of the business entity).
36. LIQUIDATED DAMAGES
If Buyer fails to complete this purchase because of Buyer's default, Seller shall retain, as liquidated damages, the deposit actually paid. Buyer and Seller agree that this amount is a reasonable sum given that It Is impractical or extremely difficult to establish the amount of damages that would actually be suffered by Seller in the event Buyer were to breach this Agreement. Release of funds will require mutual, Signed release instructions from both Buyer and Seller, judicial decision or arbitration award. AT THE TIME OF ANY
INCREASED DEPOSIT BUYER AND SELLER SHALL SIGN A SEPARATE LIQUIDATED DAMAGES PROVISION INCORPORATING THE INCREASED DEPOSIT AS LIQUIDATED DAMAGES (C.A.R. FORM DID).
Buyer's Initials Seller's Initials
37. MEDIATION:
A. The Parties agree to mediate any dispute or claim arising between them out cf this Agreement, or any resulting transaction, before resorting to arbitration or court action. The mediation shall be conducted through the C.A.R. Real Estate Mediation Center for Consumers (www.consumermediation.org) or through any other mediation provider or service mutually agreed to by the Parties. The Parties also agree to mediate any disputes or claims with Agents(s), who, In writing, agree to such mediation prior to, or within a reasonable time after, the dispute or claim Is presented to the Agent. Mediation fees, if any, shall be divided equally among the Parties involved, and shall be recoverable under the prevailing party attorney fees clause. If, for any dispute or claim to which this paragraph applies, any Party (i) commences an action without first attempting to resolve the matter through mediation, or (ii) before commencement of an action, refuses to mediate after a request has been made, then that Party shall not be entitled lo recover attorney fees, even if they would otherwise be available to that Party in any such action. THIS MEDIATION PROVISION APPLIES WHETHER OR NOT THE ARBITRATION PROVISION IS INITIALED.
B. ADDITIONAL MEDIATION TERMS: (i) Exclusions from this mediation agreement are specified in paragraph 388; (ii) The obligation to mediate does not preclude the right of either Party to seek a preservation of rights under paragraph JBC; and (iii) Agent's rights and obligations are further specified in paragraph 38D. These terms apply even if the Arbitration of Disputes paragraph is not Initialed.
CPA REVISED 12121 (PAGE 14 OF 17) Buyer's Initials ___ ___ Seller's lnttials COMMERCIAL PURCHASE AGREEMENT AND JOINT ESCROW INSTRUCTIONS (CPA PAGE 14 OF 17) Produced wil~ Lone Wo~ Traruactlons (zipfann Edition) 717 N Hatw00d S~ Sutte 2200, Dallas, TX 75201 WNW lwg~ cpm CardL'fl Gr1JVie-
Property Address: 11277 Garden Grove Blvd, Garden Grove CA. Garden Grove, Date: July 1, 2022
38. ARBITRATION OF DISPUTES:
A. The Parties agree that any dispute or claim in Law or equity arising between them out of this Agreement or any resulting transaction, which is not settled through mediation, shall be decided by neutral, binding arbitration. The arbitration shall be conducted through any arbitration provider or service mutually agreed to by the Parties, OR □--------------------------------· The Parties also agree to arbitrate any disputes or claims with Agents(s), who, in writing, agree to such arbitration prior to, or within a reasonable time after, the dispute or claim is presented to the Agent The arbitrator shall be a retired judge or justice, or an attorney with at least 5 years of transactional real estate Law e,cperience, unless the Parties mutually agree to a different arbitrator. Enforcement of, and any motion to compel arbitration pursuant to, this agreement to arbitrate shall be governed by the procedural rules of the Federal Arbitration Act, and not the California Arbitration Act, notwithstanding any language seemingly to the contrary in this Agreement. The Parties shall have the right to discovery in accordance with Code of Civil Procedure§ 1283.05, The arbitration shall be conducted in accordance with Title 9 of Part 3 of the Code of Civll Procedure. Judgment upon the award of the arbitrator(s) may be entered into any court having Jurisdiction.
B. EXCLUSIONS: The followlng matters are excluded from mediation and arbitration: (I) Any matter that is within the jurisdiction of a probate, small claims or bankruptcy court; (ii) an unlawful detainer action; and (ill) a Judicial or non• judicial foreclosure or other action or proceeding to enforce a deed of trust, mortgage or installment land sale contract as defined in Civil Code § 2985.
C. PRESERVATION OF ACTIONS: The following shall not constitute a waiver nor violation of the mediation and arbitration provisions: (i) the filing of a court action to preserve a statute of limitations; (ii) the filing of a court action to enable the recording of a notice of pending action, for order of attachment, receivership, injunction, or other provlsional remedies; or (iii) the filing of a mechanic's lien.
D. AGENTS: Agents shall not be obligated nor compelled to mediate or arbitrate unless they agree to do so in writing.
Any Agents(s) participating In mediation or arbitration shall not be deemed a party to this Agreement.
E. "NOTICE: BY INITIALING IN THE SPACE BELOW YOU ARE AGREEING TO HAVE ANY DISPUTE ARISING
OUT OF THE MATTERS INCLUDED IN THE 'ARBITRATION OF DISPUTES' PROVISION DECIDED BY
NEUTRAL ARBITRATION AS PROVIDED BY CALIFORNIA LAW AND YOU ARE GIVING UP ANY RIGHTS
YOU MIGHT POSSESS TO HAVE THE DISPUTE LITIGATED IN A COURT OR JURY TRIAL BY INITIALING
IN THE SPACE BELOW YOU ARE GIVING UP YOUR JUDICIAL RIGHTS TO DISCOVERY AND APPEAL,
UNLESS THOSE RIGHTS ARE SPECIFICALLY INCLUDED IN THE 'ARBITRATION OF DISPUTES' PROVISION. IF YOU REFUSE TO SUBMIT TO ARBITRATION AFTER AGREEING TO THIS PROVISION, YOU
MAY BE COMPELLED TO ARBITRATE UNDER THE AUTHORITY OF THE CALIFORNIA CODE OF CIVIL PROCEDURE. YOUR AGREEMENT TO THIS ARBITRATION PROVISION 15 VOLUNTARY." "WE HAVE READ AND UNDERSTAND THE FOREGOING AND AGREE TO SUBMIT DISPUTES ARISING
OUT OF THE MATTERS INCLUDED IN THE 'ARBITRATION OF DISPUTES' PROVISION TO NEUTRAL ARBITRATION."
Buyer's Initials Seller's Initials I
39. OFFER
A. EXPIRATION OF OFFER: This offer shall be deemed revoked and the deposit, if any, shall be returned to Buyer unless by the date and time specified in paragraph 3C, the offer is Signed by Seller and a Copy of the Signed offer is Delivered to Buyer or Buyer's Authorized Agent. Seller has no obligation to respond to an offer made.
B. D ENTITY BUYERS: (Note: If this paragraph is completed, a Representative Capacity Signature Disclosure (C.A.R.
Form RCSDJ Is not required for the Legally Authorized Signers designated below.) (1) One or more Buyers is a trust, corporation, LLC, probate estate, partnership, holding a power of attorney or other entity. (2) This Agreement is being Signed by a Legally Authorized Signer in a representative capacity and not in an individual capacity. See paragraph 35 for additional terms.
(3) The name(s) of the Legally Authorized Signer(s) is/are: ___________ ,, _________ _ (4) If a trust, identify Buyer as trustee{s} of the trust or by simplified trust name (ex. John Doe, co-trustee, Jane Doe, co-trustee or Doe Revocable Family Trust}. If the entity is a trust or under probate, the following is the full name of the trust or probate case, including case#: -------------------------------- C. The CPA has 17 pages. Buyer acknowledges receipt of, and has read and understands, every page and all attachments that make up the Agreement.
D. BUYER SIGNATURE($):
(Signature) By, _____________________________ Date: ______ _ Printed name of BUYER: .=C:..:.:it:.<.y..=o:.:..f-=G:.::a:.:..;rd=-:e:..:.n=-G=.,roc..:v--=e _________________________ _ D Printed Name of Legally Authorized Signer: ______________ Title, if applicable, _____ _ (Signature) By, _____________________________ Date: _____ _ Printed name of BUYER: ________________________________ _ D Printed Name of Legally Authorized Signer: ______________ Title, if applicable, _____ _ 0 IF MORE THAN TWO SIGNERS, USE Additional Signature Addendum (C.A.R. Form ASA).
CPA REVISED 12/21 (PAGE 15 OF 17) Buyer's Initials ----' ___ Seller"s Initials COMMERCIAL PURCHASE AGREEMENT AND JOINT ESCROW INSTRUCTIONS (CPA PAGE 15 OF 17) Produced mlh Lone Wolf Transocl1ons (zlpFotm Edition) 717 JII Harwood St, Suile 2200, Dallas, TX 75201 www lwoK com G~rden C:ron
Property Address: 11277 Garden Grove Blvd, Garden Grove CA. Garden Grove, Date: =-Ju::..:l.,_y....:1.._, =-20=-=2=-=2'-------
40. ACCEPTANCE
A. ACCEPTANCE OF OFFER: Seller warrants that Seller is the owner of the Property or has the authority to execute this Agreement. Seller accepts the above offer and agrees to sell the Property on the above terms and conditions. Seller has read and acknowledges receipt of a Copy of this Agreement and authorizes Agent to Deliver a Signed Copy to Buyer.
Seller's acceptance is subject to the attached Counter Offer or Back-Up Offer Addendum, or both, checked below.
Seller shall return and include the entire agreement with any response.
B
Seller Counter Offer (C.A.R. Form SCO or SMCO)
Back-Up Offer Addendum (CAR. Form BUO)
B. D Entity Sellers: (Note: If this paragraph is completed, a Representative Capacity Signature Disclosure form (C.A.R.
Form RCSD) is not required for the Legally Authorized Signers designated below.) ( 1) One or more Sellers is a trust, corporation, LLC, probate estate, partnership, holding a power of attorney or other entity. (2) This Agreement is being Signed by a Legally Authorized Signer in a representative capacity and not in an individual capacity. See paragraph 35 for additional terms.
(3) The name(s) of the Legally Authorized Signer(s) is/are: ___________ , __________ _ (4) If a trust, identify Seller as lrustee(s) of the trust or by simplified trust name (ex. John Doe, co-trustee, Jane Doe, co-trustee or Doe Revocable Family Trust). If the entity is a trust or under probate, the following is the full name of the trust or probate case, including case#: ---------------------------------- C. The RPA has 17 pages. Seller acknowledges receipt of, and has read and understands, every page and all attachments that make up the Agreement.
D. SELLER SIGNATURE(S):
(Signature) By, _______________________________ Date: ______ _ Printed name of SELLER: KJ Investment Group LLC
D Printed Name of Legally Authorized Signer; ______________ Title, if applicable, ______ _ (Signature) By, Date: ______ _
Printed name or SELLER:---------------------------------- 0 Printed Name of Legally Authorized Signer: ______________ Title, if applicable, ______ _ 0 IF MORE THAN TWO SIGNERS, USE Additional Signature Addendum (C.A.R. Form ASA).
OFFER NOT ACCEPTED: / No Counter Offer is being made. This offer was not accepted by Seller ____ (date) Seller's Initials
CPA REVISED 12/21 (PAGE 16 OF 17) Buyer's Initials Seller's Initials COMMERCIAL PURCHASE AGREEMENT AND JOINT ESCROW INSTRUCTIONS (CPA PAGE 16 OF 17) Produced wilh Lane WoKTransactions (zipFo,m Edition) 717 N Harwood St Suite 2200, Dallas. TX 75201 IWOY !wolf com
Property Address· 11277 Garden Grove Blvd Garden Grove CA Garden Grove ' '
I Date-Julv 1 2022 I
REAL ESTATE BROKERS SECTION:
1. Real Estate Agents are not parties to the Agreement between Buyer and Seller.
2. Agency relationships are confirmed as stated in paragraph 2.
3. Cooperating Broker Compensation: Seller's Broker agrees to pay Buyer's Broker and Buyer's Broker agrees to accept, out of Seller's Broker's proceeds in escrow, the amount specified in the MLS, provided Buyer's Broker is a Participant of the MLS in which the Property is offered for sale or a reciprocal MLS. If Seller's Broker and Buyer's Broker are not both Participants of the MLS, or a reciprocal MLS, in which the Property is offered for sale, then compensation must be specified in a separate written agreement (C.A.R. Form CBC}. Declaration of License and Tax (C.A.R. Form DL T} may be used to document that tax reporting will be required or that an exemption exists.
4. Presentation of Offer: Pursuant to the National Association of REALTORS® Standard of Practice 1-7, if Buyer's Agent makes a written request, Seller's Agent shall confirm in writing that this offer has been presented to Seller. s. Agents' Signatures and designated electronic delfvery address; A. Buyer's Brokerage Firm Lie.#
By Lie.# Date
By Lie.# Date
B
More than one agent from the same firm represents Buyer. Additional Agent Acknowledgement (C.A.R. Form AAA) attached.
More than one brokerage firm represents Buyer. Additional Broker Acknowledgement (C.A.R. Form ABA) attached.
Designated Electronic Delivery Address(es):
Email Text#
Alternate:
D if checked. Delivery shall be made to the alternate designated electronic delivery address only.
Address City State Zip
B. Seller's Brokerage Firm Lightner Realty Lie. # 01968403 By Elizabeth Nguyen Lie. # 01932102 Date
By Lie.# Date
B
More than one agent from the same firm represents Seller. Additional Agent Acknowledgement (C.A. R. Form AAA) attached.
More than one brokerage firm represents Seller. Additional Broker Acknowledgement (CAR. Form ABA) attached.
Designated Electronic Delivery Address(es) (To be filled out by Seller's Agent):
Email Text#
Alternate:
D if checked, Delivery shall be made to the alternate designated electronic delivery address only.
Address City State Zip
ESCROW HOLDER ACKNOWLEDGMENT:
Escrow Holder acknowledges receipt of a Copy of this Agreement, (if checked, D a deposit in the amount of$ \, Counter Offer numbers and , and agrees to act as Escrow Holder subject to paragraph 22 of this Agreement, any supplemental escrow instructions and the terms of Escrow Holder's general provisions.
Escrow Holder is advised by that the date of Acceptance of the Agreement is Escrow Holder Escrow#
By Date
Address
Phone/Fax/E-rnail
Escrow Holder has the following license number #
D Department of Financial Protection and Innovation, D Department of Insurance, D Department of Real Estate.
PRESENTATION OF OFFER: I Seller's Brokerage Firm presented this offer to Seller on (date).
Broker or Desianee Initials
~ 2021, Califomia Association of REAL TORS®, Inc. Un~ed States copyright law (TIUe 17 U.S. Code) forbids 1he unauthorized dislribuUon, display and reproduction of this form, or any portion thereof, by photocopy machine or any other means, including facsimile or compuleri~ed formats. THIS FORM HAS BEEN APPROVED BY THE CALIFORNIA ASSOCIATION OF REAL TORS®. NO REPRESENTATION IS MADE AS TO THE LEGAL VALIDITY OR ACCURACY OF ANY PROVISION IN ANY SPECIFIC TRANSACTION. A REAL ESTATE BROKER IS THE PERSON QUALIFIED TO ADVISE ON REAL ESTATE TRANSACTIONS. IF YOU DESIRE LEGAL OR TAX AOVICE, CONSULT AN APPROPRtA TE PROFESSIONAL. This form is made available lo real estate professionals through an agreement with or purchase from the California Association of REAL TORS®. It is not Intended to identify the user as a REAL TOR®. REAL TOR® Is a registered collectiva membership mark which may be used only by members of the NATIONAL ASSOCIATION OF REALTORS® who subscribe lo ils Code of Ethics.
IJ
Published and Distributed by:
REAL ESTATE BUSINESS SERVICES, LLC.
a subsidiary of the CALIFORNIA ASSOC/A TION OF REAL TORS® ~ . 525 South Virgil Avenue, Los Angeles, California 9002D l..:.f CPA REVISED 12/21 (PAGE 17 OF 17) Buyer's Initials ___ ___ Seller's Initials ___ ___ ==" COMMERCIAL PURCHASE AGREEMENT AND JOINT ESCROW INSTRUCTIONS (CPA PAGE 17 OF 17) Produced wOh Lone Wolf Transaclions (zlpFom, Edition) 717 N Harwood St, Suile 2200, Dallas, TX 75201 www lwQ)t com
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BUYER'S INVESTIGATION ADVISORY
(C.A.R. Form BIA, Revised 12/21)
Property Address 11277 Garden Grove Blvd, Garden Grove CA, Garden Grove,
1. IMPORTANCE OF PROPERTY INVESTIGATION: The physical condition of the land and improvements being purchased is not guaranteed by either Seller or Brokers. You have an affirmative duty to exercise reasonable care to protect yourself, including discovery of the legal, practical and technical implications of disclosed facts, and the investigation and verification of information and facts that you know or that are within your diligent attention and observation. A general physical inspection typically does not cover alt aspects of the Property nor items affecting the Property that are not physically located on the Property. If the professionals recommend further investigations, including a recommendation by a pest control operator to inspect inaccessible areas of the Property, you should contact qualified experts to conduct such additional investigations.
2. BROKER OBLIGATIONS: Brokers do not have expertise in all areas and therefore cannot advise you on many items, such as those listed below. If Broker gives you referrals to professionals, Broker does not guarantee their performance.
3. YOU ARE STRONGLY ADVISED TO INVESTIGATE THE CONDITION AND SUITABILITY OF ALL ASPECTS OF THE PROPERTY, INCLUDING BUT NOT LIMITED TO THE FOLLOWING. IF YOU DO NOT DO SO, YOU ARE ACTING AGAINST THE ADVICE OF BROKERS.
A. GENERAL CONDITION OF THE PROPERTY, ITS SYSTEMS ANO COMPONENTS: Foundation, roof (condition, age, leaks, useful life), plumbing, heating, air conditioning, electrical, mechanical, security, pool/spa (cracks, leaks, operation), other structural and non-structural systems and components, fixtures, built-in appliances, any personal property lncluded in the sale, and energy efficiency of the Property.
B. SQUARE FOOTAGE, AGE, BOUNDARIES: Square footage, room dimensions, lot size, age of improvements and boundaries. Any numerical statements regarding these items are APPROXIMATIONS ONLY and have not been verified by Seller and cannot be verified by Brokers. Fences, hedges, walls, retaining walls and other barriers or markers do not necessarily identify true Property boundaries.
C. WOOD DESTROYING PESTS: Presence of, or conditions likely to lead to the presence of wood destroying pests and organisms.
D. SOIL STABILITY: Existence of fill or compacted soil, expansive or contracting soil, susceptibility to slippage, settling or movement, and the adequacy of drainage.
E. WATER AND UTILITIES; WELL SYSTEMS AND COMPONENTS; WASTE DISPOSAL: Water and utility availability, use restrictions and costs. Water quality, adequacy, condition, and performance of well systems and components. The type, size, adequacy, capacity and condition of sewer and septic systems and components, connection to sewer, and applicable fees.
F. ENVIRONMENTAL HAZARDS: Potential environmental hazards, including, but not limited to, asbestos, lead based paint and other lead contamination, radon, methane, other gases, fuel oil or chemical storage tanks, contaminated soil or water, hazardous waste, waste disposal sites, electromagnetic fields, nuclear sources, and other substances, materials, products, or conditions (including mold (airborne, toxic or otherwise), fungus or similar contaminants).
G. EARTHQUAKES AND FLOODING: Susceptibility of the Property to earthquake/seismic hazards and propensity of the Property to flood.
H. FIRE, HAZARD, AND OTHER INSURANCE: The availability and cost of necessary or desired insurance may vary.
The location of the Property in a seismic, flood or fire hazard zone, and other conditions, such as the age of the Property and the claims history of the Property and Buyer, may affect the availability and need for certain types of insurance. Buyer should explore insurance options early as this information may affect other decisions, including the removal of loan and inspection contingencies.
I. BUILDING PERMITS, ZONING, GOVERNMENTAL REQUIREMENTS, ANO ADDRESS: Permits, inspections, certificates, zoning, other governmental limitations, restrictions, and requirements affecting the current or future use of the Property, its development or size. Postal/mailing address and zip code may not accurately reflect the city which has jurisdiction over the property.
J. RENTAL PROPERTY RESTRICTIONS: The State, some counties, and some cities impose restrictions that limit the amount of rent that can be charged, the maximum number of occupants, and the right of a landlord to terminate a tenancy. Deadbolt or other locks and security systems for doors and windows, including window bars, should be examined to determine whether they satisfy legal requirements.
K. SECURITY AND SAFETY: State and local Law may require the installation of barriers, access alarms, self latching mechanisms and/or other measures to decrease the risk to children and other persons of existing swimming pools and hot tubs, as well as various fire safety and other measures concerning other features of the Property.
© 2021, California Association of REALTORS®, Inc.
BIA REVISED 12121 (PAGE 1 OF 2)
BUYER'S INVESTIGATION ADVISORY BIA PAGE 1 OF 2
Mo~o,o inc., UOO S.Xor'f~lk St, S=-.n Mateo,, CA 9-'403 Phone: (714)818-061-S Fax.:
Ellzabe1h Ng11y'-"n Produced with Lone Wolf Transactions ~zipForrn Ed i1ion) 717 N Harwood St. Suit a 2200, DaRaEi, TX 75201 www !wolf com
L. NEIGHBORHOOD, AREA, SUBDIVISION CONDITIONS; PERSONAL FACTORS; Neighborhood or area conditions, including schools, law enforcement, crime statistics, registered felons or offenders, fire protection, other government services, availability, adequacy and cost of internet connections or other technology services and installations, commercial, industrial or agricultural activities, existing and proposed transportation, construction and development that may affect noise, view, or traffic, airport noise, noise or odor from any source, wild and domestic animals, other nuisances, hazards, or circumstances, protected species, wetland properties, botanical diseases, historic or other governmentally protected sites or improvements, cemeteries, facilities and condition of common areas of common interest subdivisions, and possible lack of compliance with any governing documents or Homeowners' Association requirements, conditions and influences of significance to certain cultures and/or religions, and personal needs, requirements and preferences of Buyer.
By signing below, Buyers acknowledge that they have read, understand, accept and have received a Copy of this Advisory, Buyers are encouraged to read it carefully.
Buyer
Buyer
City of Garden Grove Date _______ _
---------------------------------Date _______ _
@ 2021, California Associadon of REALTORS®, Inc. United Stales copyright law (TiUe 17 U.S. Code) forbids the unautnorized dIstribuUon, display and reproducOon of this form, or any portion thereof, by photocopy machine or any other means, including facsimile or computerized formats. THIS FORM HAS BEEN APPROVED BY THE CALIFORNIA ASSOCIATION OF REALTORS®. NO REPRESENTATION IS MADE AS TO THE LEGAL VALIDITY OR ACCURACY OF ANY PROVISION IN ANY SPECIFIC TRANSACTION. A REAL ESTATE BROKER IS THE PERSON QUALIFIED TO ADVISE ON REAL ESTATE TRANSACTIONS. IF YOU DESIRE LEGAL OR TAX ADVICE, CONSULT AN APPROPRIATE PROFESSIONAL This form is made available to real estate professionals through an agreement with or purchase from the California Association of REALTORS®. It is not intended to identify the user as a REAL TOR®. REAL TOR® is a registered collective membership mark which may be used only by members of Iha NATIONAL ASSOCIATION OF REAL TORS® who subscribe lo its Code of Ethics.
IJ
Published and Distributed by:
REAL ESTATE BUSINESS SERVICES, LLC.
a subs;dia,y of the CALIFORNIA ASSOCIATION OF REAL TORS® • 525 South Virgil Avenue, Los Angeles, California 90D20 BIA REVISED 12/21 (PAGE 2 OF 2)
BUYER'S INVESTIGATION ADVISORY (BIA PAGE 2 OF 2)
Produced wilh LOfle Wolf Transactions (zlpfo,m Edi~oo) 717 N Harwood SI, Suite 220□, Dallas, TX 75201 WWW IWPH com G11rdicn Ctovi
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POSSIBLE REPRESENTATION OF MORE THAN ONE BUYER
OR SELLER -DISCLOSURE AND CONSENT
~ (C.A.R. Form PRBS, Revised 12/21)
A real estate broker (Broker), whether a corporation, partnership or sole proprietorship, may represent more than one buyer or seller. This multiple representation can occur through an individual licensed as a broker or salesperson or through different individual broker's or salespersons (associate licensees) acting under the Broker's license. The associate licensees may be working out of the same or different office locations.
Multiple Buyers: Broker (individually or through its associate licensees) may be working with many prospective buyers at the same time. These prospective buyers may have an interest in, and make offers on, the same properties. Some of these properties may be fisted with Broker and some may not. Broker will not limit or restrict any particular buyer from making an offer on any particular property whether or not Broker represents other buyers interested in the same property.
Multiple Sellers: Broker (individually or through its associate licensees) may have listings on many properties at the same time. As a result, Broker will attempt to find buyers for each of those listed properties. Some listed properties may appeal to the same prospective buyers. Some properties may attract more prospective buyers than others. Some of these prospective buyers may be represented by Broker and some may not. Broker will market all listed properties to all prospective buyers whether or not Broker has another or other listed properties that may appeal to the same prospective buyers.
Dual Agency: If Seller is represented by Broker, Seller acknowledges that broker may represent prospective buyers of Seller's property and consents to Broker acting as a dual agent for both seller and buyer in that transaction. If Buyer is represented by Broker, buyer acknowledges that Broker may represent sellers of property that Buyer is interested in acquiring and consents to Broker acting as a dual agent for both buyer and seller with regard to that property.
In the event of dual agency, seller and buyer agree that: a dual agent may not, without the express permission of the respective party, disclose to the other party confidential information, including, but not limited to, facts relating to either the buyer's or seller's financial position, motivations, bargaining position, or other personal information that may impact price, including the seller's willingness to accept a price less than the listing price or the buyer's willingness to pay a price greater than the price offered; and except as set forth above, a dual agent is obligated to disclose known facts materially affecting the value or desirability of the Property to both parties.
Offers not necessarily confidential: Buyer is advised that seller or listing agent may disclose the existence, terms, or conditions of buyer's offer unless all parties and their agent have signed a written confidentiality agreement. Whether any such information is actually disclosed depends on many factors, such as current market conditions, the prevailing practice in the real estate community, the listing agent's marketing strategy and the instructions of the seller.
Buyer and seller understand that Broker may represent more than one buyer or more than one seller and even both buyer and seller on the same transaction and consents to such relationships.
Seller and/or Buyer acknowledges reading and understanding this Possible Representation of More Than One Buyer or Seller -Disclosure and Consent and agrees to the agency possibilities disclosed.
Seller KJ Investment Group LLC Date ____ _
Seller Date ____ _
Buyer City of Garden Grove Date ____ _
Buyer Date ____ _
Buyer's Brokerage Firm ____________________ DRE Lie# _____ Date ____ _ By DRE Lie# _____ Date ____ _
Seller's Brokerage Firm =L~ig~h=tn=e=r_R_e_a_lty~------------DRE Lie# 01968403 Date ____ _ By DRE Lie# 01932102 Date ___ _
Elizabeth Nguyen
© 2021. Calilomia Association of REAL TORS®, Inc. United States copyright law (TiUe 17 U.S. Code) forbids Iha unaulhoozed dislribulion, display and reproducUon of this form, or any portion thereof, by photocopy machine or any other means, Including facsimile or computerized formals. THIS FORM HAS BEEN APPROVED BY THE CALIFORNIA ASSOCIATION OF REALTORS®. NO REPRESENTATION IS MAOE AS TO THE LEGAL VALIDITY OR ACCURACY OF ANY PROVISION IN ANY SPECIFIC TRANSACTION. A REAL ESTATE BROKER IS THE PERSON QUALIFIED TO ADVISE ON REAL ESTATE TRANSACTIONS. IF YOU DESIRE LEGAL OR TAX ADVICE, CONSULT AN APPROPRIATE PROFESSIONAL. This form is made available to real estate professionals through an agreement with or purchase from !he California Association of REALTORS®. It Is not inlended to identify the user as a REALTOR®. REAL TOR® is a registered collective membership mark which may be used only by members of the NATIONAL ASSOCIATION OF REALTORS®wnc subscribe lo Its Code of Ethics, REAL ESTATE BUSINESS SERVICES, LLC.
I]
Published and Dislribuled by:
• a subsidiary of !he CALIFORNIA ASSOCIATION OF REAL TORS® < _ 525 Soulh Virgil Avenue, Los Angeles, California 90020 PRBS REVISED 12/21 {PAGE 1 OF 1)
POSSIBLE REPRESENTATION OF MORE THAN ONE BUYER OR SELLER PRBS PAGE 1 OF 1 Movotr, Inc .. UGO S. Sorfolk St. San M::tltfl+ CA 9-4403 Phone: (714)!178-0635 fax:
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CALIFORNIA CONSUMER PRIVACY ACT ADVISORY,
DISCLOSURE AND NOTICE
(C.A.R. Form CCPA, Revised 12/21)
The California Consumer Privacy Act (commencing with Civil Code§ 1798.100) rccPA") grants to California residents certain rights in their private, personal information ("Pl") that is collected by companies with whom they do business.
Under the CCPA, Pl is defined broadly to encompass non-public records information that could reasonably be linked directly or indirectly to you. Pl could potentially include photographs of, or sales information about, your property.
During the process of buying and selling real estate your Pl will be collected and likely shared with others, including real estate licensees, a Multiple Listing Service, real estate internet websites, service providers, lenders, and title and escrow companies, to name several possibilities. Businesses that are covered by the CCPA are required to grant you various rights in your Pl, including the right to know what Pl is collected, "opt out" or stop the transfer of your Pl to others, and the right to request that the business delete your Pl entirely. You may get one or more notices regarding your CCPA rights from businesses you interact with in a real estate transaction. However, not all businesses that receive or share your Pl are obligated to comply with the CCPA. Also, even businesses that are otherwise covered under the CCPA may have a legal obligation to maintain Pl, notwithstanding your instruction to the contrary. For instance, regardless of whether they are covered by CCPA, under California law, brokers and Multiple Listing Services are required to maintain their records for 3 years. If you wish to exercise your rights under CCPA, where applicable, you should contact the respective business directly.
You can obtain more information about the CCPA and your rights under the law from the State of California Department of Justice (oag.ca.gov/privacy/ccpa).
I/we acknowledge receipt of a copy of this California Consumer Privacy Act Advisory, Disclosure and Notice.
Buyer/Seller/Landlord/Tenant ________________________ Date _______ _ City of Garden Grove
Buyer/Seller/Landlord/Tenant _______________________ Date ______ _ © 2021, California Association of REALTORS®, Inc. United States copyrlghl law (TIUe 17 U.S. Code) forbids the unauthorized distribution, display and reprocluctlon of this form, or any portion thereof. by photocopy machine or any other means, Including facsimile or computerized formats. THIS FORM HAS BEEN APPROVED BY THE CALIFORNIA ASSOCIATION OF REAL TORS®. NO REPRESENTATION IS MADE />S TO THE LEGAL VALIOITY OR ACCURACY OF ANY PROVISION IN ANY SPECIFIC TRANSACTION. A REAL ESTATE BROKER IS THE PERSON QUALIFIED TO ADVISE ON REAL ESTATE TRANSACTIONS, If YOU DESIRE LEGAL OR TAX AOVICE, CONSULT AN APPROPRIATE PROFESSIONAL. This form is made available to real estate professionals through an agreement with or purchase from the California Association of REALTORS®. It is not inlencled lo Identify the user as a REALTOR®. REAL TOR® is a registered collective membership mark which may ba used only by members of the NATIONAL ASSOCIATION OF REALTORS®who subscribe lo its Code of Ethics. [l
Published and Dislributed by: ~
REAL ESTATE BUSINESS SERVICES, LLC.
a subsidiary of the CALIFORNIA ASSOC/A TION OF REAL TORS® = 525 South Virgil Avenue, Los Angeles. California 90020 ~ CCPA REVISED 12121 (PAGE 1 OF 1)
CALIFORNIA CONSUMER PRIVACY ACT ADVISORY CCPA PAGE 1 OF 1 ~ .. ..,,~ In, .. 1900 s. Sorfolk s,. s,. M>I ... CA 9HOl Phone: (71~)8711-06JS Fax:
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ADDENDUM No. 1
(C.A.R. Form ADM, Rev-=l-se_d..,....,.12/=2"""1),--
The following terms and conditions are hereby Incorporated in and made a part of the Purchase Agreement, OR D Resldential Lease or Month-to-Month Rental Agreement, 0 Transfer Disclosure Statement (Note: An amendment to the TDS may give the Buyer a right to rescind), 0 Other--------------------------------- dated ___________ , on property known as ____ ......:.1.:..12=.7:...;7c....:G:.::a::...,d=-e=-=nc:....=G:..:.ro-=---=--v-=-e-=B:..:.lv-=-d:c.,LG=ard:.=e:..:.n:....:::;G='ro::.;v:...;e::.;-=C.:..A':-::---_-,-__ ------------------=G-=a-=-rd~e=n-=--=G~r~o-=-ve~ _________________ ("Property/Premises"), in which City of Garden Grove is referred to as ("Buyer/Tenant") and KJ Investment Group LLC is referred to as ("Seller/Landlord").
Buyer/Tenant and Seller/Landlord are referred to as the "Parties." Seller shall deliver Property with one Tenant, OC Association of Mental Health located in suite 101, occupying 6200 square feet. The remaining bu/ldfng square footage of 241192 square feet shall be delivered vacant.
The foregoing terms and conditions are hereby agreed to, and the undersigned acknowledge receipt of a copy of this Addendum.
Buyer/Tenant Date
City of Garden Grove
Buyer/Tenant Date
Seller/Landlord Date
KJ Investment Group LLC
Seller/landlord Date
C> 2021, California Association of REAL TORS®, Inc. Unitad States copyright law (Title 17 U.S. Code) forbids the unautharized distribution, display and reproduction or this form, or any portion thereof, by photocopy machine or any olher means, including facsimile or computerized formats. THIS FORM HAS BEEN APPROVED BY THE CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.). NO REPRESENTATION IS MADE AS TO THE LEGAL VALIDITY OR ACCURACY OF ANY PROVISION IN ANY SPECIFIC TRANSACTION. A REAL ESTATE BROKER IS THE PERSON QUALIFIED TO ADVISE ON REAL ESTATE TRANSACTIONS. IF YOU DESIRE LEGAL OR TAX ADVICE, CONSULT AN APPROPRIATE PROFESSIONAL. This form is made available to real estate professionals through an agreement with or purchase from the California Association of REAL TORS®. II is not intended to identify the user as a REAL TOR®. REALTOR® is a registered collective membership mark which may be used only by members of the NATIONAL ASSOCIATION OF REAL TORS®who subscribe to its Code of Ethics.
REAL ESTATE BUSINESS SERVICES, LLC.
I]
Published and Distributed by:
a subsidiary of the CALIFORNIA ASSOC/A TION OF REAL TORS® . 525 South Virgil Avenue, Los Angeles, California 90020 ADM REVISED 12/21 (PAGE 1 OF 1)
ADDENDUM ADM PAGE 1 OF 1
llau,to lllt., UDO S. Su.-fulkSt. Saa Malta, CA ,.,_403 Phone· ('1J-t.)878-0US Fax:
Ellt•h•lh Na~r•• Produced wilh Lene Wolf Transactions lzipForm Edition) 717 N Harwood Sl Suite 2200. Dallas. TX 75201 www two![ oom Agenda Item - 5.d.
City of Garden Grove
INTER-DEPARTMENT MEMORANDUM
To: Scott C. Stiles From: Omar Sandoval
Dept.: City Manager Dept.: City Attorney
Subject: Introduction and first reading
of an ordinance reauthorizing
the public, educational, and
governmental fee on state
video franchisees operating
within the City of Garden
Grove
Date: 7/12/2022
OBJECTIVE
For the City Council to introduce, read by title only and waive further reading, of an ordinance reauthorizing the public, educational, and governmental (PEG) fee on state video franchisees operating within the City.
BACKGROUND
In 2006, the California Legislature adopted the Digital Infrastructure and Video Competition Act (“DIVCA”), which changed the manner in which video services are regulated by replacing local franchising with a state franchising system administered by the California Public Utilities Commission. DIVCA authorizes cities to impose a five percent gross receipts franchise fee upon state video franchisees, plus additional support for PEG programming facilities. DIVCA requires state franchise holders to offer at least three PEG channels to each community in which they operate. DIVCA also authorizes cities to adopt an ordinance imposing a one percent PEG fee on state franchise holders to support PEG programming facilities.
The City Council adopted Ordinance No. 2731 in 2008 to require video service providers who have been issued state franchises to pay the City a PEG access fee of one percent of the video service provider’s gross revenues. Ordinance No. 2731 further establishes a five percent franchise fee as authorized by DIVCA. DIVCA also provides, however, that any ordinance adopting a PEG access fee “shall expire, and may be reauthorized, upon the expiration of the state franchise.” (Public Utilities Code section 5870(n)).
Subdivision (k) of PUC Section 5870 further provides that obligations to provide and support PEG channel facilities contained in a locally issued franchise existing on December 31, 2006, shall continue until the local franchise expires, until the term of
the franchise would have expired if it had not been terminated pursuant to subdivision (o) of Section 5840, or until January 1, 2009, whichever is later. The City had issued Time Warner Cable a franchise on 2002 for a period of 20 years, which expires on August 21, 2022. This franchise requires franchise fee payments of five percent of gross annual revenues, and monthly PEG support fees in the amount of 50 cents per subscriber. After the first 10 years of the franchise term, the fee decreased in five-cent increments each year. Because the PEG support fees under the City franchise decreased to levels lower than the one percent fee authorized by DIVCA, Time Warner Cable opted to remain subject to the City’s local franchise rather than the state franchise.
DISCUSSION
Time Warner Cable merged with Charter Communications in 2015 and now operates in the city as Spectrum. Because its franchise will expire on August 21, 2022, it is now appropriate to reauthorize the one percent PEG fee established in 2008 by Ordinance 2731.
In addition to reauthorizing the PEG fee effective August 22, 2022, the attached ordinance implements an automatic reauthorization to the extent required by law, and amends Section 5.25.060 of the Garden Grove Municipal Code to codify the automatic reauthorization.
FINANCIAL IMPACT
Reauthorizing the one percent PEG access support fee will most likely increase revenues earmarked for PEG access equipment and facilities utilized by the City's Channel 3, the full extent of which is not currently known.
RECOMMENDATION
It is recommended that the City Council:
Introduce and conduct the first reading to approve the attached ordinance reauthorizing the public, educational, and governmental fee on state video franchisees operating within the city.
ATTACHMENTS:
Description Upload Date Type File Name
Ordinance 7/5/2022 Ordinance 2022_DIVCA_PEG_REAUTHORIZATION_ORDINANCE.pdf
•
589646.1
GARDEN GROVE CITY COUNCIL
ORDINANCE NO. ______
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF GARDEN GROVE
REAUTHORIZING THE PUBLIC, EDUCATIONAL, AND GOVERNMENTAL FEE ON STATE
VIDEO FRANCHISEES OPERATING WITHIN THE CITY OF GARDEN GROVE
City Attorney’s Summary
This Ordinance reauthorizes the public, educational, and governmental fee on state video franchisees operating within the City of Garden Grove. The Ordinance further amends Section
5.25.060 of Chapter 25 of Title 5 of the Garden Grove Municipal Code to implement automatic reauthorizations of the fee for any new or renewed state video franchise(s) held by any state - franchised video service provider operating in the City of Garden Grove.
WHEREAS, Section 5870(n) of the California Public Utilities Code (“Sec tion 5870(n)”) was enacted as part of the Digital Infrastructure and Video Competition Act of 2006 (“DIVCA”) and authorized the City of Garden Grove (“City”) to adopt an ordinance establishing a fee on state -franchised video service providers to support public, educational, and governmental (“PEG”) channel facilities; and
WHEREAS, on August 26, 2008 , the City adopted Ordinance No. 2731 implementing DIVCA , codified at Chapter 5.25 of Title 5 of the Garden Grove Municipal Code establishing, among other requirements, a one percent (1%) fee for the support of PEG channel facilities and activities within the City (“PEG Fee”), which is codified in Section 5.25.060 of the Garden Grove Municipal Code; and
WHEREAS, Ordinance No. 2731 and Chapter 5.25 of the Garden Grove Municipal Code has never been repealed and did not include any expiration date, but was intended to apply to and regulate all current and future franchisees; and
WHEREAS, Section 5870(n) states that an ordinance establishing a PEG fee shall expire, and may be reauthorized, upon the expiration of the state franchise, and therefore it could be argued that the City's ordinance has lapsed; and
WHEREAS, Section 5870(k) further provides that obligations to provide and support PEG channel facilities contained in a locally issued franchise existing on December 31, 2006, shall continue until the local franchise expires, until the term of the franchise would have expired if it had not been terminated pursuant to subdivision (o) of Section 5840, or until January 1, 2009, whichever is later; and
WHEREAS, the City’s local franchise with Time Warner Cable LLC, now known as Spectrum after its 2015 merger with Charter Communications, is set to expire on August 21, 2022; and
Garden Grove City Council
Ordinance No.
WHEREAS, notwithstanding having received a state franchise, Spectrum opted to continue to operate under the City’s local franchise until its expiration; and
WHEREAS, the City Council desires to reauthorize the PEG fee established by Ordinance No. 2731.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF GARDEN GROVE DOES HEREBY ORDAIN AS FOLLOWS:
SECTION 1. Reauthorization. Chapter 5.25 of Title 5 of the Garden Grove Municipal Code is hereaby reauthorized to the extent required by California Public Utilities Code section 5870(n). All state-franchised video service providers operating within the City shall be subject to the franchise fee required by Section 5.25.050 of the Garden Grove Municipal code and the PEG Fee required by Section 5.25.060 of the Garden Grove Municipal Code as of August 22, 2022, which fees shall remain unchanged and in full effect as to all state -franchised video service providers ope rating within the City.
SECTION 2. Automatic Reauthorization. Commencing from, and after, the effective date of this Ordinance, Chapter 5.25 of Title 5, and the City’s fees set forth in Sections
5.25.050 and 5.25.060 of the Garden Grove Municipal Code shall continue to apply to any new or existing franchisee operating in the City and shall automatically be reauthorized upon the expiration of any existing or future state video franchise(s) held by any state -franchised video service provider operating withi n the City. This Ordinance shall so renew until such time that the City Council takes formal affirmative action to cease the renewals.
SECTION 3. Section 5.25.060 of Chapter 25 of Title 5 of the Garden Grove Municipal Code is hereby amended to read as follows (additions in bold underline):
5.25.060 PEG Fee.
A. In addition to the franchise fee required pursuant to section 5.25.050, a state video franchise holder operating in the City shall pay to the City a fee that is equal to one percent (1%) of the gross revenues of that state video franchise holder which fee shall be used to support PEG channel facilities. The term “gross revenues” shall be defined as set forth in Public Utilities Code Section 5860. Further, pursuant to Public Utilities Code Section 5870, this Section shall become applicable upon the expiration or termination of the incumbent operator’s franchise agreement; the terms of Public Utilities Code Sec tion 5870 and the existing franchise agreement shall otherwise apply to the incumbent franchisee until such expiration or termination.
B. To the extent reauthorization is required by law, this chapter, including the the PEG fee set forth in in subdivision (A) above shall continue to apply to any new or existing franchisee
Garden Grove City Council
Ordinance No.
operating in the City and is automatically reauthorized as to each affected state video franchise holder upon the expiration of any existing or future s tate video franchise(s) held by any state - franchised video service provider operating within the City. Any and all reauthorizations shall be effective for so long as such reauthorization is required by law.
SECTION 4. Severability. If any section, subs ection, subdivision, sentence, clause, phrase, word or portion of this Ordinance is, for any reason, held to be invalid or unconstitutional by the decision of any court of competent jurisdiction, such decision shall not affect the validity of the remaining portions of this Ordinance. The City Council hereby declares that it would have adopted this Ordinance and each section, subsection, subdivision, sentence, clause, phrase, word or portion thereof, irrespective of the fact that any one or more sections, s ubsections, subdivisions, sentences, clauses, phrases, words or portions thereof be declared invalid or unconstitutional.
SECTION 5. The City Clerk shall certify to the adoption of this Ordinance and cause the same to be posted at the duly designated posting places within the City and published once within fifteen days after passage and adoption as may be required by law; or, in the alternative, the City Clerk may cause to be published a summary of this Ordinance and a certified copy of the text of this Ordinance shall be posted in the Office of the City Clerk five days prior to the date of adoption of this Ordinance; and, within fifteen days after adoption, the City Clerk shall cause to be published, the aforementioned summary and shall post a certified copy of this Ordinance, together with the vote for and against the same, in the Office of the City Clerk.
Agenda Item - 6.b.
City of Garden Grove
INTER-DEPARTMENT MEMORANDUM
To: Scott C. Stiles From: Lisa L. Kim
Dept.: City Manager Dept.: Community and Economic
Development
Subject: Discussion about
advancement of a future
Navigation Center as
requested by City Manager
Stiles.
Date: 7/12/2022
OBJECTIVE
For the City Council to receive a report on efforts to advance a future navigation center, and to provide direction to the City Manager.
BACKGROUND
The 2021 Comprehensive Strategic Plan to Address Homelessness (CSPAH) presently serves as a planning document enabling the City to be strategic in identifying ways to connect homeless individuals to resources and programs. The CSPAH identifies goals and strategic actions to address homeless solutions and prevention over the next five years including exploring development of a navigation center. A summary of current CSPAH activities is available on the City’s website at
https://ggcity.org/endhomelessness.
In addition, the City’s Homeless Data Dashboard conveys the number of homeless and at-risk individuals assisted on a quarterly basis, as well as the funds expended to administer the six (6) eligible activities (Street Outreach, Emergency Shelter, Rapid Rehousing, Homelessness Prevention, and Workforce Development) at https://ggcity.org/endhomelessness/dashboard
DISCUSSION
At the June 14, 2022 meeting, the City Council approved a Memorandum of Understanding (MOU) with the cities of Fountain Valley and Westminster to jointly collaborate towards development of a navigation center including funding contributions towards construction and operations. Staff is pleased to report the MOU has been formally approved by both Fountain Valley and Westminster City Councils at their meetings on June 21 and June 22, 2022, respectively. (See Attachment No. 1 – MOU) Negotiations towards a more comprehensive MOU detailing levels of funding commitments by the participating Central SPA cities and
the County are in process.
Prospective Navigation Center Site
Identification of suitable and prospective industrial properties for a future navigation center has been significantly challenged due to limited real estate inventory. The current approach is to pursue and explore off-market property opportunities in conjunction with active dialogue with the local brokerage community.
By way of background, a future navigation center is anticipated to support up to 80 to 120 individuals experiencing homelessness within the participating Central SPA cities. The navigation center will be referral-only based facilities with managed and controlled (transportation) access in and out. The 2022 Point In Time Count provides a summary of data related to sheltered and unsheltered individuals in Orange County.
For Garden Grove, this most recent PIT count identified 391 homeless individuals. (Attachment No. 2 – 2022 PIT Count)
Community Outreach
For more information about Homelessness 101 and Navigation Center 101, the City recently hosted two educational webinars in collaboration Orange County United Way as part of the United to End Homelessness Initiative. Both webinars are recorded and available on the City’s Address Homelessness website as referenced above.
1) Homelessness 101 Webinar ( Attachment No. 3 )
Presented by the City of Garden Grove and United to End Homelessness on Monday, June 27, 2022
Link to webinar recording: https://ggcity.org/navigation-center
2) Navigation Center 101 Webinar ( Attachment No. 4 ) Presented by Cities of Garden Grove, Fountain Valley and Westminster, and United to End Homelessness on Monday, July 11, 2022
Link to webinar recording: https://ggcity.org/navigation-center
Staff are in multiple discussions regarding sites located in the Homeless Overlay District, in the southeast area of the city, and we expect to bring back details on a possible purchase-sale agreement at the August 9, 2022 City Council meeting.
FINANCIAL IMPACT
Funds have been budgeted in the Biennial Budget for FY 2021-2022 and FY 2022- 2023 for the Navigation Center project.
RECOMMENDATION
It is recommended that the City Council:
Direct the City Manager to continue exploration of potential navigation center site(s) and pursue negotiations towards site control, as appropriate.
•
ATTACHMENTS:
Description Upload Date Type File Name
Attachment No. 1 -
MOU 7/6/2022 Agreement C-SPA_MOU_City_Cooperation_(Final).pdf Attachment No. 2
(2022 Point In Time
Counts)
7/6/2022 Backup Material 2022_PIT_Data_Infographic.pdf
Attachment No. 3
(Homelessness 101
Webinar)
7/6/2022 Backup Material Homelessness_101_Flyer_(June_27__2022).pdf Attachment No. 4
(Navigation Center
101 Webinar)
7/6/2022 Backup Material Navigation_Center_101_Flyer_(July_11__2022).pdf
1 MEMORANDUM OF UNDERSTANDING BETWEEN THE CITIES
OF GARDEN GROVE, FOUNTAIN VALLEY, AND
WESTMINSTER TO COOPERATE ON THE DEVELOPMENT OF
A NAVIGATION CENTER FOR THE CENTRAL ORANGE
COUNTY SERVICE PLANNING AREA
This MEMORANDUM OF UNDERSTANDING (“Agreement”) is dated as of June __, 2022 (“Effective Date”), and entered into by and among the Cities of Garden Grove, Fountain Valley, and Westminster, each of which is a municipal corporation organized and existing under California law (cumulatively the “City Parties” or “Parties,” and at times individually a “City Party”),
with reference to and in consideration of the following:
WHEREAS, like many other regions in California, the County of Orange (“Orange”) has seen a rapid and troubling growth in the homeless population over the past several years, a condition that has been difficult to address given the increased rates of persons with untreated addictive disorders involving substance abuse and mental health conditions, the high cost of housing and property in the area, and the shortage of emergency, transitional, and affordable housing available in the County to serve this population;
WHEREAS, as a result, local jurisdictions throughout the County have experienced increased incidents of unlawful camping and loitering activities in and upon portions of the public rights-of-way, parks, and other public facilities (“Public Property”) in violation of local anti - camping, anti-loitering, and/or park closure ordinances and regulations;
WHEREAS, the use of Public Property in this manner creates health and safety risks to homeless persons due to traffic hazards, exposure to weather, inadequate sanitation, and other conditions detrimental to their wellbeing, and negatively impacts the health, safety, and general welfare of the community by degrading the environmental and physical condition of such Public Property, increasing risks associated the spread of illnesses, and frustrating the public purpose for which such Public Property is dedicated;
WHEREAS, in efforts to address th is crisis, the County established an integrated Continuum of Care (“CoC”) to guide homeless individuals and families through a comprehensive array of services and housing designed to prevent and end homelessness;
WHEREAS,
to better coordinate access points, assessments, resources, and programs serving persons experiencing homelessness, the CoC divided the County into three (3) geographic “Service Planning Areas” (or “SPAs”), with the “Central Service Planning Area” (“Central SPA”) including the cities of Westminster, Garden Grove, and Fountain Valley;
WHEREAS, The City Parties desire to cooperate to establish a new Navigation Center and to memorialize this non
-binding statement of intent by each of the City Parties to cooperate and act in good faith to enter into a comprehensive final MOU between the City Parties which will define the respective rights and responsibilities of each City with respect to the acquisition of a site, financing, operations, and the provision of Services at the Navigation Center.
2 WHEREAS, in addition to addressing the needs of homeless persons through the provision of overnight shelter, the City Parties covenant to work together, in furtherance of the CoC, towards developing and increasing the Central SPA’s inventory of long -term affordable and supportive housing units, such that homeless persons receiving services under this Agreement may transition from temporary or emergency shelter facilities, and into long-term and stable housing solutions; and
WHEREAS, each Party has caused this Agreement to be duly approved by its respective governing body, and by so doing, has found and determined that this Agreement furthers the health, safety, and general welfare of their respective
residents.
NOW THEREFORE, in consideration of the mutual covenants and conditions contained herein, and other good and valuable consideration, the receipt and adequacy of which are hereby acknowledged, the Parties agree as follows:
AGREEMENT
1. PURPOSE
In furtherance of the health, safety, and well-being of all their residents and to return and
preserve Public Property for its intended purpose, the City Parties, located within the Central SPA, desire to work together cooperatively and in good-faith towards developing a regional solution to the current homeless crisis within their respective jurisdictions; This Agreement is a non-binding statement of intent by each of the City Parties to cooperate and act in good faith and to expeditiously enter into a final MOU between the City Parties which will define the rights and responsibilities of the Parties with respect to the acquisition of a site, financing, operations, and the provision of Services, as defined below, at the Navigation Center.
It is the intention of the City Parties to pursue the award of available grant funds under county, state, and federal programs towards the acquisition, construction, and operation of the new Navigation Center to be located within the boundaries of the City Parties, and intended to exclusively serve the unsheltered homeless population currently residing within the jurisdiction of the City Parties;
2. DEFINITIONS
In addition to the other terms and phrases defined elsewhere in this Agreement, the following key capitalized terms and phrases used
throughout this Agreement shall have the meaning assigned in this Section.
2.1. “Center Operator” shall mean and refer to the third-party contracted by a Host City to provide comprehensive and “turnkey” day -to-day management and operation of a Navigation Center.
2.2. “Guests” shall mean and refer to homeless and chr onically homeless adults, children, and families located within the Program Area.
3 2.3. “Guest Capacity” shall mean and refer to the number of beds provided in a Navigation Center.
2.4. “Host City” shall mean and refer to the City of Garden Grove.
2.5. “Navigation Center” shall mean and refer to those public facilities to be acquired, constructed, and operated in the Host City under this Agreement.
2.6. “Operating Plan” shall mean and refer to plan approved by a Host City, Party Representatives, and a Center Operator, that details the terms, conditions, and standards by which Services are made available to Guests at a Navigation Center.
2.7. “Party Representative” shall mean and refer to the highest -ranking appointed executive official for each of the Parties, or his/or her duly authorized designee.
2.8. “Party Share” shall mean and refer to that portion of the City Program Costs allocated to each City Party.
2.9. “Program” shall mean and refer to the Parties’ cooperative financing and planning for the acquisition, construction, operation and the provision of Services at the Navigation Centers, and the cooperative sharing among the Parties of Guest Capacity at the Navigation Centers.
2.10. “Program Area” shall mean and refer to the area within the city limits of the City Parties.
2.11. “Program Costs” shall mean and refer to the cost s incurred by the Parties in the acquisition of Navigation Center sites and the completion of modifications or capital improvements thereto, and annually to operate the Navigation Centers during the Term.
2.12. “Program Funds” shall mean and refer to all funds paid by or to the Parties under this Agreement, including but not limited to any grant funds received by the Parties and contributed towards the Program.
2.13. “Program Property” shall mean and refer to all real and personal property purchased or acquired with Program Funds.
2.14. “Services” shall mean and refer to the provision of overnight shelter and other sanitation, nutritional, health, educational, supportive, and/or basic human services at Navigation Centers, as described in an Operating Plan.
3. TERM
3.1. General Term. This Agreement shall be effective as of the date which the last of the Parties has executed the same, which shall be inserted as the Effective Date in the first
4 paragraph above, and shall remain in full force and effect until terminated by the execution of a successor MOU or 12 months from the Effective Date, whichever occurs sooner. The Term may be extended upon the mutual written agreement of the Parties, or earlier terminated in accordance with the provisions of this Agreement.
3.2. Termination by City Parties.
a) Notice and Effective Date. Notwithstanding Section 3.1, any City Party may terminate its participation in this Agreement by providing 30 day’s written notice to all other Parties.
b) Continuing Enforceability. Following the effective date of termination, the terminating City Party shall have no further obligations or rights with respect to this Agreement, except as expressly provided otherwise herein.
4. NAVIGATION CENTERS
4.1 City Navigation Centers. The Parties desire to work cooperatively and combine their respective resources for purposes of providing and coordinating the provision of Services to Guests at a Navigation Center located in the Program Area, and to acquire, construct, develop, and o
perate the new Navigation Center. To accomplish this task, the Parties agree to negotiate in good faith and cooperation to finalize and execute a C-SPA Navigation Center MOU which will address, at a minimum, the following topics:
a) Funding and Financial Provisions. Funding for the Navigation Center property acquisition, necessary improvements, operational equipment, fixtures and furnishings, and ongoing operations.
b) Construction and Maintenance
c) Use and Operations
d) Security
e) Community Coordination and Communication
f) Disputes, Defaults and Remedies
g) Indemnity and Insurance
h) Standard Provisions for a Multi-Agency Agreement
5. CONSTRUCTION AND MAINTENANCE OF THE NAVIGATION CENTER
5.1. Ownership. The Navigation Center shall be owned by the applicable Host City, together with any Program Property in the custody or possession of a Host City; provided the Navigation Center and Program Property shall be utilized by the Host City exclusively for purposes consistent with this
Agreement.
5.2. Design. The Host City shall have final authority over the design and construction of
5 the Navigation Center located in its jurisdiction, in accordance with the Host City’s ownership rights and plenary land use authority. Prior to a Host City’s commencement of construction of, or significant modifications or improvements to, a Navigation Center, the City Managers or their delegated City Representatives will be provided a reasonable opportunity to review and provide input on the proposed design and amenities of the Navigation Center, and the Host City will, in good faith, consider the input of the Party Representatives in finalizing the same.
5.3. Host City as “Lead Agency.” The Host City for the Navigation Center shall be the “lead agency” for purposes of improvements or modifications thereto, as well for the environmental review, acquisition, development, and construction of a Navigation Center, and the operation, cleaning, maintenance, or repair of a Navigation Center.
5.4. Security. The Host City will ensure that adequate security measures and policies are incorporated into the Navigation Center s’ construction and operation, including but not limited to security plans, secured entrances, on-site security personnel, video recording equipment, adequate lighting, law enforcement patrols, and neighborhood safety controls. Detailed security procedures and protocols will be included in the Operating Plan developed by the Host City, Center Operator, and the Party Representatives.
6. USE AND OPERATION OF NAVIGATION CENTERS
6.1. Exclusive Purpose of Navigation Centers. A Navigation Center subject to this Agreement will be used by the Parties exclusively for the purpose of providing Services to Guests located within the Program Area. The Parties agree to work cooperatively and in good faith, and to take such reasonable action(s) or precaution(s) as deemed necessary, to effectuate the purpose of this Section.
6.2. Use and Access of Navigation Centers. In consideration for the City Parti es’ payment of their respective Party Share, each City Party shall have the right to utilize an approximately equivalent percentage of its Party Share of total Guest Capacity in the Navigation Centers. The Parties shall have access to and utilize the monitoring and logging system developed and operated by the County to track the real-time availability of Guest Capacity in the Navigation Centers, and to make arrangements and reservations for the transportation of Guests thereto and therefrom. Parties utilizing Guest Capacity in Navigation Centers shall comply with the applicable Operating Plan.
6.3. Host City Priority. The Host City shall have priority to utilize the available Guest Capacity in their respective Navigation Center, and shall have the right of first refusal in the event of capacity overflow or shortages.
6.4. Annual Review of Party Usage. The Guest Capacity utilized by each City Party shall be reviewed not less than once per year in conjunction with an Annual Meeting and in light of an Annual Report and Annual Audit, and the results of this review shall be used for making any necessary adjustments to the Party Shares or the Cost Allocation Plan to ensure the Parties’ financial obligations hereunder accurately reflect the benefit derived; as well as to make any necessary revisions to the Operating Plans to further the goals and objectives of this Agreement.
6 6.5. Low-Barrier Access. The Navigation Center s shall be considered “low barrier” facilities for purposes of Guest access, and any entry screening, barriers, or conditions to access shall be defined in the Operating Plan, as such may be approved by the Party Representatives and reasonably necessary to accomplish the purposes of this Agreement, or as may otherwise be ordered by a court of law, or required by a settlement agreement to which the Host City is a party.
Except as required to comply with applicable law or court order, the Navigation Centers shall not be “no-barrier” facilities, and shall have, at a minimum, access or entry conditions for Guests that are substantially similar to those utilized by the other Navigation Centers, and screening for felony warrants or registration as a sex offender as may be included in the Operating Plan.
6.6. Community Coordination and Communication. The Parties are committed to communication with neighbors on an ongoing basis. During the Term, the Parties and the Center Operators will work together cooperatively and in good faith to facilitate community forums, generate educational or outreach materials, and engage in similar activities to promote or further the purposes of the Program. The goal of such efforts will be to provide members of the community with opportunities to ask questions and receive information about the Navigation Centers and the Program. Any printed or published materials relating to the Program shall be subject to approv al by the Party Representatives.
7. MISCELLANEOUS
7.1. Notice. Any notices provided to any Party in connection with this Agreement shall directed to the City Manager of the City Parties.
7.2. Parties as Independent Contractors. Each Party is, and at all times shall be deemed to be, an independent contract or of the other Parties. Nothing herein is intended or shall be construed as creating the relationship of employer and employee, or principal and agent, between any Party, or any Party's agents or employees. Each Party shall retain all authority for rendition of services, standards of performance, control of personnel, and other matters incident to the performance of the Program pursuant to this Agreement. Each Party, and its agents and employees, shall not be considered to be employees of any other Party.
7.3. Governing Law and Venue. This Agreement has been negotiated and executed in the State of California and shall be governed by and construed under the laws of the State of California. In the event of any legal action to enforce or interpret this Agreement, the sole and exclusive venue shall be a court of competent jurisdiction, located in Orange County, California, and the Parties agree to and hereby submit to the jurisdiction of such court, notwithstanding Code of Civil Procedure Section 394. Furthermore, the Parties specifically agree to waive any and all rights to request that an action be transferred for trial to another county.
7.4. Amendments / Entire Agreement. Amendments to this Agreement must be in writing and approved by the governing body of each Party. This Agreement is the entire agreement among the Parties with respect to the subject matter hereof, and it supersedes any prior written or oral agreements with respect to the subject matter.
7 7.5. Severability. If any section, subsection, paragraph, term, or provision of this Agreement, or the application thereof, is held by a court of competent jurisdiction to be invalid, void or unenforceable, such section, subsection, paragraph, term, or provision, to the extent the same is valid and enforceable, and all other remaining provisions hereof, shall remain in full force and effect, to the fullest extent possible, and shall in no way be affected, impaired or invalidated thereby to the extent such are not rendered impractical to perform taking into consideration the purposes of this Agreement.
7.6. Interpretation. This Agreement has been negotiated at arm's length and between persons sophisticated and knowledgeable in the matters dealt with in this Agreement. In addition, each Party has been represented by experienced and knowledgeable independent legal counsel of its own choosing or has knowingly declined to seek such counsel despite being encouraged and given the opportunity to do so.
7.7. Non-Waiver of Rights and Remedies. No term or provision of this Agreement shall be deemed waived and no breach excused, unless such waiver or consent shall be in writing and signed by the Party claimed to have waived or consented. Any consent by any Party to, or waiver of, a breach by the other, whether express or implied, shall not constitute consent to, waiver of, or excuse for any other different or subsequent breach.
7.8. Authority. The Parties represent and warrant that this Agreement has been duly authorized by their respective governing boards, and executed by a duly authorized representative thereof, and constitutes the legally binding obligation of their respective Party, enforceable in accordance with its terms.
7.9. Assignment. Except as otherwise expressly provided for herein, no Party shall assign any of its obligations or rights hereunder without the consent of all other Parties, and any such assignment without consent shall be null and void.
7.10. Execution in Counterparts. This Agreement may be executed in counterparts, each of which, when the Parties have signed this Agreement, shall be deemed to be an original, and such counterparts shall constitute one and the same instrument.
[SIGNATURE PAGE FOLLOWS]
8 IN WITNESS WHEREOF , the Parties to this Agreement have caused the same to be executed by each of their duly authorized officers as follows:
CITY OF FOUNTAIN VALLEY
By:
City Manager
Attest:
City Clerk
Approved as to form:
City Attorney
CITY OF GARDEN GROVE
By:
City Manager
Attest:
City Clerk
Approved as to form:
City Attorney
CITY OF WESTMINSTER
By:
City Manager
Attest:
City Clerk
Approved as to form:
City Attorney
2022 POINT IN TIME
SUMMARY
May 2022
2022 POINT IN TIME
COUNT TOTALS
2022 POINT IN TIME COUNT BY THE NUMBERS
SUBPOPULATIONS
5,718
TRANSITIONAL
AGED YOUTH
Persons ages 1 8 to 24
235
SENIORS
Persons ages 62 and older
718
VETERANS
Persons who served in the U.S. Armed
Forces, National Guard or Reserves
280
2,419North:
Central: 2 ,714
South: 585
METHODOLOGY
The U.S. Department of Housing and Urban Development (HUD) requires that all Continuum of Care (CoC) jurisdictions across the nation complete a biennial unsheltered count and an annual sheltered count of all persons experiencing homelessness in the community on a single point in time during the last ten days of January. The Orange County CoC is among several CoC in California that were approved by HUD to reschedule the 2022 Point In Time to the last 10 days of February due to the impacts of COVID-1 9 pandemic and in an effort to safeguard the health of volunteers and vulnerable persons experiencing homelessness.
The County of Orange and Orange County CoC conducted the sheltered count the night of Monday, February 2 1, 2022. Emergency Shelters and Transitional Housing Programs collected participant-level demographic information from individuals and families staying the night in each program. The 2022 Unsheltered Count process took place over three days - Tuesday, February 22 through Thursday, February 24 - to ensure the 800 square mile Orange County jurisdiction was canvassed effectively. This methodology allowed the count teams to collect unique ID data points that were used to deduplicate records for the three-day street count process. The survey data was collected with ArcGIS Survey 1 23, a phone application that captures GIS locations and provides vital information that guides the way the County responds to homelessness in Orange County. The methodology for the 2022 Everyone Counts process provides the most accurate data on the scope of homelessness in Orange County, ensuring that Everyone Counts.
Persons
Persons
Persons
Persons
2
UNSHELTERED COUNT
MAPS & VOLUNTEERS
3,057
UNSHELTERED TOTAL
14 5
VETERANS
Persons who served in the U.S.
Armed Forces, National Guard
or Reserves
109
TRANSITIONAL
AGED YOUTH
Persons ages 1 8 to 24
300
SENIORS
Persons ages 6
2 and older
Community volunteers, nonprofit and faith-
based service providers including representa-
tives from law enforcement, all 34 cities and
County government.
982
Field teams of volunteers deployed into the
community to canvas maps and survey people
experiencing homelessness.
208
Maps were canvassed at least twice during the
2022 Point In Time Count effort.
412
1,113
1,522
422
3
• County of Orange – including Health Care Agency, Social Services Agency, OC Community Resources, OC Parks, OC Public Works, OC Information & Technology, OC Sheriff's Department
• Continuum of Care Agencies
• Nonprofit and faith-based service providers
•
34 Cities and law enforcement agencies
• Community volunteers from every part of Orange County • Commission to End Homelessness
• Hub for Urban Initiatives – HUD methodology and survey tool design • City Net – lead agency for unsheltered count
• 2-1-1 Orange County – lead agency for sheltered count
SHELTERED COUNT
THANK YOU TO ALL THOSE INVOLVED
2,661
SHELTERED TOTAL
13 5
VETERANS
Persons who served in the U.S.
Armed Forces, National Guard
or Reserves
12 6
TRANSITIONAL
AGED YOUTH
Persons ages 1 8 to 24
418
SENIORS
Persons ages 62 and older
1,306
1,19 2
163
4
SUBPOPULATIONS &
DISABLING CONDITIONS
2,936 2,060
CHRONIC HOMELESSNESS 38.40%55.07%
1,6 1 7 Adults 79 1 Adults
SUBSTANCE USE ISSUES 20.19%41.45%
416 Adults1,2 1 7 Adults
PHYSICAL DISABILITY 32.19% 24.85%
5 1 2 Adults945 Adults
MENTAL HEALTH ISSUES 29.53% 28.06%
578 Adults867 Adults
DEVELOPMENTAL DISABILITY 1 4.27% 1.89%
39 Adults41 9 Adults
DOMESTIC VIOLENCE 9.84% 10.97%
226 Adults289 Adults
HIV/AIDS 1.77% 3.74%
77 Adults52 Adults
ADULTS
UNSHELTERED SHELTERED
5 * Some adul ts may ident ify with more tha n on e subp op ula tion a nd/or report more tha n on e disab lin g cond it ion* *Data only includ es a dults, person s a ge 18 and olde r*
DEMOGRAPHICS
Age Unsheltered
3,057 Persons
Sheltered
2,661 Persons
Under 18 3.96%
121 Persons
22.59%
601 Persons
18-24 3.57%
109 Persons
4.74%
126 Persons
25-39 33.40%
1,021 Persons
21.01%
559 Persons
40-49 20.22%
618 Persons
1 4.09%
375 Persons
50-54 1 2.69%
388 Persons
7 .82%
208 Persons
55-61 16.36%
500 Persons
1 4.05%
374 Persons
62+ 9.81%
300 Persons
1 5.71%
418 Persons
Gender Unsheltered
3,057 Persons
Sheltered
2,661 Persons
Female 25.81%
789 Persons
48.10%
1,280 Persons
Male 73.50%
2,247 Persons
5 1.48%
1,370 Persons
Transgender 0.43%
13 Persons
0.1 5%
4 Persons
Gender not singularly
Female or Male
0.1 3%
4 Persons
0.23%
6 Persons
Questioning 0.1 3%
4 Persons
0.04%
1 Person
6
DEMOGRAPHICS
Ethnicity Unsheltered
3,057 Persons
Sheltered
2,661 Persons
Hispanic or Latino 34.22%
1,046 Persons
54.68%
1,455 Persons
Non- Hispanic or
Non-Latino
65.78%
2,011 Persons
45.32%
1,206 Persons
Race Unsheltered
3,057 Persons
Sheltered
2,661 Persons
American Indian
or Alaska Native
3.86%
1 1 8 Persons
3.49%
93 Persons
Asian 3.1 4%
96 Persons
3.72%
99 Persons
Black or
African American
6.22%
190 Persons
1 1.01%
293 Persons
Native Hawaiian Or
other Pacific Islander
1.01%
31 Persons
0.98%
26 Persons
White 65.42%
2,000 Persons
77 .26%
2,056 Persons
Multiple Races or
Other
20.35%
622 Persons
3.53%
94 Persons
7
HOUSEHOLD STATUS
HOUSEHOLD STATUS
Households Description Unsheltered
(3,057)
Sheltered
(2,661)
Total
(5,718)
Individuals Individuals ages 1 8+ 2,806 1,704 4,5 10
Families
Households with at
least one adult and
one child
94 Families
25 1 persons in
households:
1 30 Adults
1 2 1 Children
295 Families
950 persons in
households:
356 Adults
594 Children
389 Families
1,201 persons in
households:
486 Adults
7 1 5 Children
Unaccompanied
Youth
Minors (1 7 and
younger without
parent/guardian)
0 7 7
8
COUNT MEIN!
-•=
2022 POINT IN TIME COUNT:
CITY BY CITY
City Unsheltered Sheltered Total
Anaheim 485 589 1,074
Brea 24 0 24
Buena Park 85 181 266
Cypress 28 0 28
Fullerton 202 70 272
La Habra 45 0 45
La Palma 8 0 8
Los Alamitos 4 9 13
Orange 134 11 6 250
Placentia 31 167 198
Stanton 62 14 8 210
Villa Park 0 0 0
Yorba Linda 4 0 4
County Unincorporated 1 0 1
Domestic Violence Programs 26 26
North Service Planning Area 1,113 1,306 2,419
City Unsheltered Sheltered Total
Costa Mesa 15 0 58 208
Fountain Valley 38 0 38
Garden Grove 278 113 391
Huntington Beach 18 8 142 330
Newport Beach 96 0 96
Santa Ana 508 482 990
Seal Beach 8 0 8
Tustin 86 232 318
Westminster 15 9 0 15 9
County Unincorporated 11 36 47
Domestic Violence Programs 129 129
Central Service Planning Area 1,522 1,19 2 2 ,714
City Unsheltered Sheltered Total
Aliso Viejo 13 4 17
Dana Point 27 0 27
Irvine 60 0 60
Laguna Beach 28 55 83
Laguna Hills 12 0 12
Laguna Niguel 29 0 29
Laguna Woods 7 0 7
Lake Forest 65 11 76
Mission Viejo 26 2 28
Rancho Santa Margarita 7 0 7
San Clemente 81 50 131
San Juan Capistrano 65 0 65
County Unincorporated 2 0 2
Domestic Violence Programs 41 41
South Service Planning Area 422 163 585
9
2019 & 2022 RESULTS
COMPARISON
Year Unsheltered Count Sheltered Count Total
# % # % # %
2019 3,961 57.74% 2,899 42.26% 6,860 100%
2022 3,057 53.46% 2,66 1 46.54% 5 , 718 100%
Difference -904 -22.82% -238 -8.21% -1, 1 42-16.65%
COMPARISON OF 2019 AND 2022 POINT IN TIME COUNT TOTALS
Service Planning Area 2019 Unsheltered 2022 Unsheltered Difference # % # % # %
North 1,596 40.29% 1 ,113 36.41% -483 -30.26%
Central 1,827 46.12% 1,522 49.79% -305 -16.69%
South 538 13.59% 422 13.80% - 11 6 -21.56%
Total 3,961 3,057 -904 -22.82%
COMPARISON OF 2019 AND 2022 UNSHELTERED COUNTS BY SERVICE PLANNING AREA Service Planning Area 2019 Sheltered 2022 Sheltered Difference # % # % # %
North 1,16 9 40.32% 1,306 49.08% 137 11.72%
Central 1,505 51.92% 1,192 44.79% -313 -20.80%
South 225 7.76% 163 6.13% -62 -27.56%
Total 2,899 2,661 -238 -8.21%
COMPARISON OF 2019 AND 2022 SHELTERED COUNTS BY SERVICE PLANNING AREA 10
2019 & 2022 RESULTS
COMPARISON
COMPARISON OF 2019 AND 2022 POINT IN TIME COUNT - SUBPOPULATIONS AND
DISABLING CONDITIONS
2019 Unsheltered
3,71 4 Adults
2022 Unsheltered
2,936 Adults
Chronic Homelessness 52.02%
1,932 Adults
55.07%
1,6 1 7 Adults
Substance Use Issues 33.74%
1,253 Adults
41.45%
1,2 1 7 Adults
Physical Disability 31.18%
1, 1 58 Adults
32.19%
945 Adults
Mental Health Issues 26.82%
996 Adults
29.53%
867 Adults
Developmental Disability 1 4.03%
521 Adults
1 4.27%
419 Adults
Domestic Violence 9.50%
353 Adults
9.84%
289 Adults
HIV/AIDS 1.80%
67 Adults
1.77%
52 Adults
2019 Sheltered
2, 166 Adults
2022 Sheltered
2,060 Adults
Chronic Homelessness 26.27%
569 Adults
38.40%
791 Adults
Substance Use Issues 26.64%
577 Adults
20.19%
416 Adults
Physical Disability 1 4.82%
321 Adults
24.85%
512 Adults
Mental Health Issues 31.21%
676 Adults
28.06%
578 Adults
Developmental Disability 4.85%
105 Adults
1.89%
39 Adults
Domestic Violence 8.54%
185 Adults
10.97%
226 Adults
HIV/AIDS 1.80%
39 Adults
3.74%
77 Adults
11 *Some adults may identify with more than one subpopulation and/or report more than one disabling condition * *Data only includes adults, persons age 18 and older *
2019 & 2022 RESULTS
COMPARISON
2019 Unsheltered 2022 Unsheltered Comparison
# # # %
Individuals 3,562 2,806 -756 -21.22%
Families -16 -1 4.55%
110 Families
396 persons in households
152 Adults
244 Children
94 Families
251 persons in households
130 Adults
121 Children
-1 45
-22
- 12 3
-36.62%
-1 4.47%
-50.41%
Unaccompanied
Youth 3 0 -3 -100.00%
2019 Sheltered 2022 Sheltered Comparison
# # # %
Individuals 1,734 1,704 -30 -1.73%
Families -61 -17.13%
356 Families
1,154 persons in households
432 Adults
722 Children
295 Families
950 persons in households
356 Adults
594 Children
-204
-76
-128
-17.68%
-17.59%
-17.73%
Unaccompanied
Youth 11 7 -4 -36.36%
2019 Total 2022 Total Comparison
# # # %
Individuals 5,296 4,5 10 -768 -1 4.84%
Families -77 -16.52%
466 Families
1,550 persons in households
584 Adults
966 Children
389 Families
1,201 persons in households
486 Adults
715 Children
-349
-98
- 251
-22.52%
-16.78%
-25.98%
Unaccompanied
Youth 14 7 -7 -50.00%
COMPARISON OF 2019 AND 2022 POINT IN TIME COUNT HOUSEHOLD INFORMATION Descriptions:
Individuals: Individuals ages 18+
Families: Households with at least one adult and one child Unaccompanied Youth: Minors (17 and younger without parent/guardian) 12
2019 & 2022 RESULTS
COMPARISON
2019
Unsheltered
2022
Unsheltered Comparison 2019
Sheltered
2022
Sheltered Comparison 2019
Total
2022
Total Comparison
# # # % # # # % # # # %
Anaheim 694 485 -209 -30. 1 2% 508 589 81 15.94 % 1,202 1, 074 - 12 8 -10.65% Brea 30 24 -6 -20.00% 0 0 0 30 24 -6 -20.00%
Buena Park 142 85 -57 -40. 1 4% 14 5 181 36 24.83% 287 266 - 21 -7.32% Cypress 39 28 - 11 -28.2 1% 0 0 0 39 28 - 11 -28.2 1%
Fullerton 308 202 -106 -34.42% 165 70 -95 -57.58% 473 272 -201 -42.49% La Habra 45 45 0 0 0 0 45 45 0
La Palma 9 8 -1 - 11 .11 % 0 0 0 9 8 -1 - 11 .11 %
Los Alamitos 1 4 3 300.00% 21 9 - 12 -57. 1 4% 22 13 -9 -40.9 1% Orange 193 134 -59 -30.57% 14 8 11 6 -32 -2 1.62% 341 250 - 91 -26.69% Placentia 55 31 -24 -43.64% 108 167 59 54.63% 163 198 35 2 1.47% Stanton 71 62 -9 -1 2.68% 45 14 8 103 228.89% 11 6 210 94 8 1.03% Villa Park 0 0 0 0 0 0 0 0 0
Yorba Linda 1 4 3 300.00% 0 0 0 1 4 3 300.00%
County
Unincorporated 8 1 -7 -87.50% 0 0 0 8 1 -7 -87.50%
DV Programs 29 26 29 26
North Service
Planning Area
Total
1,596 1,113 -483 -30.26% 1,16 9 1,306 137 11. 7 2 % 2,765 2,419 -346 -1 2.5 1% North Service Planning Area
COMPARISON OF 2019 AND 2022 POINT IN TIME COUNT Notes
• The thirteen cities in the North Service Planning Area jointly fund two regional shelters located in the Cities of Buena Park and Placentia to serve individuals experiencing homelessness in the North Service Planning Area • The City of Stanton hosts two Homekey Program sites that currently operate as emergency shelter and will transition to permanent housing starting September 2022 13
-3 -10.34% -3% -10.34%
2019 & 2022 RESULTS
COMPARISON
COMPARISON OF 2019 AND 2022 POINT IN TIME COUNT – CITY BY CITY 2019
Unsheltered
2022
Unsheltered Comparison 2019
Sheltered
2022
Sheltered Comparison 2019
Total
2022
Total Comparison
# # # % # # # % # # # %
Costa Mesa 187 15 0 -37 -1 9.79% 6 58 52 866.67% 193 208 15 7.77% Fountain Valley 28 38 10 35.7 1% 14 0 - 14 -100.00% 42 38 -4 -9.52% Garden Grove 163 278 115 70.55% 62 113 51 82.26% 225 391 166 73.78% Huntington
Beach 289 18 8 -101 -34.95% 60 142 82 1 36.67% 349 330 - 19 -5.44% Newport Beach 64 96 32 50.00% 0 0 0 64 96 32 50.00%
Santa Ana 830 508 -322 -38.80% 939 482 -457 -48.67% 1,769 990 -779 -44.04% Seal Beach 8 8 0 0.00% 0 0 0 8 8 0 0.00%
Tustin 95 86 -9 -9.47% 264 232 -32 -1 2. 1 2% 359 318 -41 -1 1.42% Westminster 15 9 15 9 0 0.00% 25 0 -25 -100.00% 184 15 9 -25 -1 3.59% County
Unincorporated 4 11 7 1 75.00% 31 36 5 16. 1 3% 35 47 12 34.29% DV Program 104 129 25 24.04% 104 129 25 24.04%
Central Service
Planning Area
Total
1,827 1,522 -305 -16.69% 1,505 1,19 2 - 313 -20.80% 3,332 2 ,714 -618 -18.55% Central Service Planning Area Note
• The Cities of Newport Beach and Costa Mesa jointly fund the Costa Mesa Bridge Shelter to serve those experiencing homelessness in their cities 14
2019 & 2022 RESULTS
COMPARISON
COMPARISON OF 2019 AND 2022 POINT IN TIME COUNT – CITY BY CITY 2019
Unsheltered
2022
Unsheltered Comparison 2019
Sheltered
2022
Sheltered Comparison 2019
Total
2022
Total Comparison
# # # % # # # % # # # %
Aliso Viejo 1 13 12 1 200.00% 0 4 4 1 17 16 1600.00%
Dana Point 32 27 -5 -1 5.63% 0 0 0 32 27 -5 -1 5.63%
Irvine 127 60 -67 -52.76% 3 0 -3 -100.00% 13 0 60 -70 -53.85% Laguna Beach 71 28 -43 -60.56% 76 55 - 21 -27.63% 147 83 -64 -43.54% Laguna Hills 24 12 - 12 -50.00% 0 0 0 24 12 - 12 -50.00% Laguna Niguel 7 29 22 3 1 4.29% 3 0 -3 -100.00% 10 29 19 1 90.00% Laguna Woods 5 7 2 40.00% 0 0 0 5 7 2 40.00%
Lake Forest 76 65 - 11 -1 4.47% 36 11 -25 -69.44% 112 76 -36 -32. 1 4% Mission Viejo 22 26 4 18 .18 % 9 2 -7 -77.78% 31 28 -3 -9.68% Rancho Santa
Margarita 15 7 -8 -53.33% 0 0 0 15 7 -8 -53.33%
San Clemente 96 81 - 15 -1 5.63% 49 50 1 2.04% 14 5 131 - 14 -9.66% San Juan
Capistrano 62 65 3 4.84% 0 0 0 62 65 3 4.84%
County
Unincorporated 0 2 2 0 0 0 0 2 2
DV Program 49 41 -8 -16.33% 49 41 -8 -16.33%
South Service
Planning Area
Total
538 422 - 116 -21.56% 225 163 -62 -27 .56% 763 585 - 178 -23.33% South Service Planning Area
15
2022 POINT IN TIME SUMMARY
Homelessness has reached crisis levels both locally and nationally. Many factors, including misinformation and myths, contribute to this growing problem.
This Homelessness 101 virtual class will provide information and answer some of the most frequently asked questions about this issue.
What is homelessness?
What causes people to become homeless?
What is the current state of homelessness in Orange County? How can homelessness be solved?
By the end of this session, you will become familiar with the approaches, philosophies and terminologies associated with homelessness. More importantly, you will gain a much better understanding of the homeless system in our community, including up-to-date statistics and best practices for solving homelessness in Orange County for good.
Empowered by
If you have any questions please contact:
Atty McLellan at [email protected]
Led by:
Atty McLellan
Manager,
Community Engagement
United to End Homelessness
Orange County United Way
UnitedtoEndHomelessness.org
#EndHomelessnessOC
Ref 61022
Monday, June 27
5:30 p.m. to 7:30 p.m.
Click here to register:
https://bit.ly/3xB9ckq
Class will be held via Zoom
United
Way
Orange County United Way GARDEN GROVE
UNITED TO END
HOMELESSNESS
Navigation Center 101 Webinar
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NAVIGATION CENTER
101 WEBINAR
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bomeaid.
GARDEN GROVE ORANGE COUNTY
)
GARDEN GROVE
COALITION TO END
HOMELESSNESS