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91-019636 ~V 1` • x ~ ~ i~ ~'i~ ~ '.~LL., ~ . ,per ~ ~ _c~ ~g1 f,,.~. J 4-1 OIL 0 .40 Coln 'NN Ak NN . t4o a MEMO r ' A rx, t a'.. ak x a m7 , ALTA Owners Policy - (10/21/87)~~ t. POLICY Our TITLE INSURANCE a~ .C AME I?I r4 v 10 - First American Title Insurance Company of Oregon 200 S.W. Market St. • Portland, Oregon 97201 • (503) 222-3651 SUBJECT TO THE EXCLUSIONS FROM COVERAGE, THE EXCEPTIONS FROM COVERAGE CONTAINED IN SCHEDULE B AND THE CONDITIONS AND STIPULATIONS, FIRST AMERICAN TITLE INSURANCE COMPANY OF OREGON, a Oregon corporation, herein called the Company, insures, as of Date of Policy shown in Schedule A, against loss - or damage, not exceeding the Amount of Insurance stated in Schedule A, sustained or incurred by the insured by } reason of: a 1. Title to the estate or interest described in Schedule A being vested other than as stated therein; 2. Any defect in or lien or encumbrance on the title; ' 3. Unmarketability of the title;' 4. Lack of a right of access to and from the land. The Company will also pay the costs, attorneys' fees and expenses incurred in defense of the title, as insured, but only to the extent provided in the Conditions and Stipulations. r ' + A., i Countersigned .ry,: Authorized Of ;cer dba FIRST AMERICAN TITLE INSURANCE COMPANY OF OREGON ~p { BY PRESIDENT r ATTEST SECRETARY i' i `'~Y~4,4 ~~Yi~ "MAC  OLTA Form 13 TI 128 8/88 kL- EXCLUSIONS FROM COVERAGE The following matters are expressly excluded from the coverage of this policy and the Company will not pay loss or damage, costs, attorneys' fees or expenses which arise by reason of: 1. (a) Any law, ordinance or governmental regulation (including but not limited to building and zoning laws, ordinances, or regulations) restricting, regulating, prohibiting or relating to (i) the occupancy, use, or enjoyment of the land; (ii) the character, dimensions or location of any improvement now or hereafter erected on the land; (iii) a separation in ownership or a change in the dimensions or area of the land or any parcel of which the land is or was a part; or (iv) environmental protection, or the effect of any violation of these laws, ordinances or governmental regulations, except to the extent that a notice of the enforcement thereof or a notice of a defect, lien or encumbrance resulting from a violation or alleged violation affecting the land has been recorded in the public records at Date of Policy. (b) Any governmental police power not excluded by (a) above, except to the extent that a notice of the exercise thereof or a notice of a defect, lien or encumbrance resulting from a violation or alleged violation affecting the land has been recorded in the public records at Date of Policy. 2. Rights of eminent domain unless notice of the exercise thereof has been recorded in the public records at Date of Policy, but not excluding from coverage any taking which has occurred prior to Date of Policy which would be binding on the rights of a purchaser for value without knowledge. 3. Defects, liens, encumbrances, adverse claims or other matters: (a) created, suffered, assumed or agreed to by the insured claimant; (b) not known to the Company, not recorded in the public records at Date of Policy, but known to the insured claimant and not disclosed in writing to the Company by the insured claimant prior to the date the insured claimant became an insured under this policy; (c) resulting in no loss or damage to the insured claimant; (d) attaching or created subsequent to Date of Policy; or (e) resulting in loss or damage which would not have been sustained if the insured claimant had paid value for the estate or interest insured by this policy. CONDITIONS AND STIPULATIONS 1. DEFINITION OF TERMS. the basis of loss or damage and shall state, to the extent possi- (b) In the event of any litigation, including litigation by The following terms when used in this policy mean: ble, the basis of calculating the amount of the loss or damage. the Company or with the Company's consent, the Company (a) "insured": the insured named in Schedule A, and, If the Company is prejudiced by the failure of the insured shall have no liability for loss or damage until there has been subject to any rights or defenses the Company would have had claimant to provide the required proof of loss or damage, the a final determination by a court of competent jurisdiction, against the named insured, those who succeed to the interest Company's obligations to the insured under the policy shall and disposition of all appeals therefrom, adverse to the title of the named insured by operation of law as distinguished from terminate, including any liability or obligation to defend, pros- as insured. purchase including, but not limited to, heirs, distributees, ecute, or continue any litigation, with regard to the matter or (c) The Company shall not be liable for loss or damage to devisees, survivors, personal representatives, next of kin, or matters requiring such proof of loss or damage. any insured for liability voluntarily assumed by the insured corporate or fiduciary successors. In addition, the insured claimant may reasonably be re- in settling any claim or suit without the prior written consent (b) "insured claimant": an insured claiming loss or quired to submit to examination under oath by any authorized of the Company. damage. representative of the Company and shall produce for examina- (c) "knowledge" or "known": actual knowledge, not tion, inspection and copying, at such reasonable times and 10. REDUCTION OF INSURANCE; REDUCTION OR constructive knowledge or notice which may be imputed to an places as may be designated by any authorized representative TERMINATION OF LIABILITY. insured by reason of the public records as defined in this policy of the Company, all records, books, ledgers, checks, corre- All payments under this policy, except payments made or any other records which impart constructive notice of mat- spondence and memoranda, whether bearing a date before or for costs, attorneys' fees and expenses, shall reduce the ters affecting the land. after Date of Policy, which reasonably pertain to the loss or amount of the insurance pro tanto. (d) "land": the land described or referred to in Schedule damage. Further, if requested by any authorized representa- (A), and improvements affixed thereto which by law constitute tive of the Company, the insured claimant shall grant its per- 11. LIABILITY NONCUMULATIVE. real property. The term "land" does not include any property mission, in writing, for any authorized representative of the It is expressly understood that the amount of insurance beyond the lines of the area described or referred to in Company to examine, inspect and copy all records, books, under this policy shall be reduced by any amount the Com- Schedule (A), nor any right, title, interest, estate or easement ledgers, checks, correspondence and memoranda in he cus in abutting streets, roads, avenues, alleys, lanes, ways or tody or control of a third party, which reasonably pertain to the pane may pay under any policy insuring a mortgage to which waterways, but nothing herein shall modify or limit the extent loss or damage. All information designated as confidential by exception is taken in Schedule B or to which the insured has to which a right of access to and from the land is insured by the insured claimant provided to the Company pursuant to this agreed, assumed, or taken subject, or which hereafter this policy. Section shall not be disclosed to others unless, in the reason executed by an insured and which is a charge or lien on the (e) "mortgage". mortgage, deed of trust, trust deed, or able judgment of the Company, it is necessary in the adminis- estate or interest described or referred to in Schedule A, and tration of the claim. Failure of the insured claimant to submit the amount so paid shall be deemed a payment under this other security instrument. (f) "public records": records established under state for examination under oath, produce other reasonably request- policy to the insured owner. statutes at Date of Policy for the purpose of imparting con- ed information or grant permission to secure reasonably 12PAYMENT OF LOSS. structive notice of matters relating to real property to pur- necessary information from third parties as required in this chasers for value and without knowledge. With respect to paragraph, unless prohibited by law or governmental regula- (a) No payment shall be made without producing this Section 1(a)(iv) of the Exclusions From Coverage, "public tion, shall terminate any liability of the Company under this policy for endorsement of the payment unless the policy has records" shall also include environmental protection liens filed policy as to that claim. been lost or destroyed, in which case proof of loss or destruc- in the records of the clerk of the United States district court for tion shall be furnished to the satisfaction of the Company. the district in which the land is located. 6. OPTIONS TO PAY OR OTHERWISE SETTLE CLAIMS; (b) When liability and the extent of loss or damage (g) "unmarketability of the title": an alleged or apparent TERMINATION OF LIABILITY. has been definitely fixed in accordance with these Conditions matter affecting the title to the land, not excluded or excepted In case of a claim under this policy, the Companv shall have and Stipulations, the loss or damage shall be payable within from coverage, which would entitle a purchaser of the estate or the following additional options: 30 days thereafter. interest described in Schedule A to be released from the (a) To Pay or Tender Payment of the Amount of 13. SUBROGATION UPON PAYMENT obligation to purchase by virtue of a contractual condi Insurance. requiring the delivery of marketable title. To pay or tender payment of the amount of insura OR SETTLEMENT. under this policy together with any costs, attorneys' fees Whenece~me s Right of Subrogation. 0 Is 2. CONTINUATION OF INSURANCE AFTER expenses incurred by the insured claimant, which were Company shall have settled and paid a CONVEYANCE OF TITLE. authorized by the Company, up to the time of payment or ten- claim under this policy, all right of subrogation shall vest in fhecoverage of ttus Policy shau continue in force as of Date it of Nay reni and which ine i ompa.iy is uo;iyaieo iv fey. rzn unaffccted t'r an act the t"`LZ :d %a.; n of Policy in favor of an insured only so long as the insured Upon the exercise by the Company of this option, all liab'ir. The Company shall be subrogated to and be entitled to all retains an estate or interest in the land, or holds an indebte and obligations to the insured under this policy, other than rights and remedies which the insured claimant would have ness secured by a purchase money mortgage given b make the payment required, shall terminate, including had against any person or property in respect to the claim purchaser from the insured, or only so long as the insured sW liability or obligation to defend, prosecute, or continue a had this policy not been issued. If requested by the Com- have liability by reason of covenants of warranty made by the litigation, and the policy shall be surrendered to the Company pany, the insured claimant shall transfer to the Company all insured in any transfer or conveyance of the estate or interest. for cancellation. rights and remedies against any person or property This policy shall not continue in force in favor of any purchaser (b) To Pay or Otherwise Settle With Parties Other than necessary in order to perfect this right of subrogation. The from the insured of either (i) an estate or interest in the land, or the Insured or With the Insured Claimant. insured claimant shall permit the Company to sue, com- (ii) an indebtedness secured by a purchase money mortgage (i) to pay or otherwise settle with other parties for or promise or settle in the name of the insured claimant and to given to the insured. in the name of an insured claimant any claim insured against use the name of the insured claimant in any transaction or under this policy, together with any costs, attorneys' fees and litigation involving these rights or remedies. 3. NOTICE OF CLAIM TO BE GIVEN BY expenses incurred by the insured claimant which were If a payment on account of a claim does not fully cover the INSURED CLAIMANT. authorized by the Company up to the time of payment and loss of the insured claimant, the Company shall be sub- which the shall notify the Company writin which the Company is obligated to pay; or rogated to these rights and remedies in the proportion which y promptly in g (I) (ii) to pay or otherwise settle with the insured claim- the Company's payment bears to the whole amount of in case of any litigation asset forth in Section 4(a) below, (ii) in ant the loss or damage provided for under this policy, together the loss. case knowledge shall come to an insured hereunder of any with any costs, attorneys' fees and expenses incurred by the If loss should result from any act of the insured claimant, claim of title or interest which is adverse to the title to the insured claimant which were authorized by the Company up to as stated above, that act shall not void this policy, but the estate or interest, as insured, and which might cause loss or the time of payment and which the Company is obligated Company, in that event, shall be required to pay only that damage for which the Company may be liable by virtue of this to pay. part of any losses insured against by this policy which shall policy, or (iii) if title to the estate or interest, as insured, is Upon the exercise by the Company of either of the options exceed the amount, if any, lost to the Company by reason of rejected as unmarketable. If prompt notice shall not be given to provided for in paragraphs (b)(i) or (ii), the Company's obli- the impairment by the insured claimant of the Company's the Company, then as to the insured all liability of the Com- gations to the insured under this policy for the claimed loss or right of subrogation. pany shall terminate with regard to the matter or matters for damage, other than the payments required to be made, shall (b) The Company's Rights Against non-insured which prompt notice is required; provided, however, that terminate, including any liability or obligation to defend, pros- Obligors. failure to notify the Company shall in no case prejudice the ecute or continue any litigation. The Company's right of subrogation against non- rights of any insured under this policy unless the Company insured obligors shall exist and shall include, without limita- shall be prejudiced by the failure and then only to the extent of 7. DETERMINATION, EXTENT OF LIABILITY tion, the rights of the insured to indemnities, guaranties, the prejudice. AND COINSURANCE. other policies of insurance or bonds, notwithstanding any 4. DEFENSE AND PROSECUTION OF ACTIONS; This policy is a contract of indemnity against actual terms or conditions contained in those instruments which DUTY OF INSURED CLAIMANT TO COOPERATE. monetary loss or damage sustained or incurred by the insured provide for subrogation rights by reason of this policy. claimant who has suffered loss or damage by reason of mat (a) Upon written request by the insured and subject to ters insured against by this policy and only tothe extent herein 14. ARBITRATION. the options contained in Section 6 of these Conditions and described. Unless prohibited by applicable law, either the Company Stipulations, the Company, at its own cost and without unrea- (a) The liability of the Company under this policy shall or the insured may demand arbitration pursuant to the Title sonable delay, shall provide for the defense of an insured in not exceed the least of: Insurance Arbitration Rules of the American Arbitration litigation in which any third party asserts a claim adverse to (i) the Amount of Insurance stated in Schedule A; or, Association. Arbitrable matters may include, but are not the title or interest as insured, but only as to those stated (ii) the difference between the value of the insured limited to, any controversy or claim between the Company causes of action alleging a defect, lien or encumbrance orother estate or interest as insured and the value of the insured and the insured arising out of or relating to this policy, any matter insured against by this policy. The Company shall have estate or interest subject to the defect, lien or encumbrance service of the Company in connection with its issuance or the right to select counsel of its choice (subject to the right of insured against by this policy. the breach of a policy provision or other obligation. All the insured to object for reasonable cause) to represent the (b) In the event the Amount of Insurance stated in arbitrable matters when the Amount of Insurance is insured as to those stated causes of action and shall not be Schedule A at the Date of Policy is less than 80 percent of the $1,000,000 or less shall be arbitrated at the option of either liable for and will not pay the fees of any other counsel. The value of the insured estate or interest or the full consideration the Company or the insured. All arbitrable matters when the Company will not pay any fees, costs or expenses incurred by paid for the land, whichever is less, or if subsequent to the Date Amount of Insurance is in excess of $1,000,000 shall be the insured in the defense of those causes of action which of Policy an improvement is erected on the land which in- arbitrated only when agreed to by both the Company and the allege matters not insured against by this policy. creases the value of the insured estate or interest by at least insured. Arbitration pursuant to this policy and under the (b) The Company shall have the right, at its own cost, to 20 percent over the Amount of Insurance stated in Schedule A, Rules in effect on the date the demand for arbitration is made institute and prosecute any action or proceeding or to do any then this Policy is subject to the following: or, at the option of the insured, the Rules in effect at Date of other act which in its opinion may be necessary or desirable to (i) where no subsequent improvement has been Policy shall be binding upon the parties. The award may establish the title to the estate or interest, as insured, or to pre- made, as to any partial loss, the Company shall only pay the include attorneys' fees only if the laws of the state in which vent or reduce loss or damage to the insured. The Company loss pro rata in the proportion that the amount of insurance at the land is located permit a court to award attorneys' fees to may take any appropriate action under the terms of this policy, Date of Policy bears to the total value of the insured estate or a prevailing party. Judgment upon the award rendered by the whether or not it shall be liable hereunder, and shall not interest at Date of Policy or thereby concede liability or waive any provision of this policy. Y (ii) where a subsequent Arbitrator(s) may be entered in any court having juris If the Company shall exercise its rights under this paragraph, improvement has been made, as to any partial lass, the Com- diction thereof. it shall do so diligently. pany shall only pay the loss pro o rata in the proportion that 120 The laws of the State of Oregon shall apply to an arbitra- (c) Whenever the Company shall have brought an percent of the Amount of Insurance stated in Schedule A bears tion, action c) interposed a defense as required or permitted by the to the sum of the Amount of Insurance stated in Schedule A and A copy of the Rules may be obtained from the Company the provisions of this policy, the Company may pursue any litiga- amount expended for the improvement. upon request. tion to final determination by a court of competent jurisdiction The provisions of this paragraph shall not apply costs, and expressly reserves the right, in its sole discretion, to attorneys'fees and expenses for which the Company is liable 15. LIABILITY LIMITED TO THIS POLICY; appeal from any adverse judgment or order. under this policy, and shall only apply to that portion of any POLICY ENTIRE CONTRACT. loss which exceeds, in the aggregate, 10 percent of the (d) In all cases where this policy permits or requires the Amount of Insurance stated in Schedule A. {a) This policy together with all endorsements, if any, Company to prosecute or provide for the defense of any action {c) The Company attorne'fees attached hereto by the Company is the entire policy and con- or proceeding, the insured shall secure to the Company the will pay only those costs attorneys 'fees between the insured and the Company. In interpreting ri ht to so rosecut insured defense in the action or he and expenses incurred in accordance with Section 4 of these any provision of this policy, this policy shall be construed as g p provide pro- Conditions and Stipulations. whole. ceeding, and all appeals therein, and permit the Company to a use, at its option, the name of the insured for this purpose. 8. APPORTIONMENT. (b) Any claim of loss or damage, whether or not based Whenever requested by the Company, the insured, at the Com- on negligence, and which arises out of the status of the title pany's expense, shall give the Company all reasonable aid (i) If the land described in Schedule (A)(C) consists of two or to the estate or interest covered hereby or by any action as- in any action or proceeding, securing evidence, obtaining wit- more parcels which are not used as a single site, and a loss is serting such claim, shall be restricted to this policy. nesses, prosecuting or defending the action or proceeding, or established affecting one or more of the parcels but not all, the (c) No amendment of or endorsement to this policy effecting settlement, and (ii) in any other lawful act which in loss shall be computed and settled on a pro rata basis as if the can be made except by a writing endorsed hereon or the opinion of the Company may be necessary or desirable to amount of insurance under this policy was divided pro rata as attached hereto signed by either the President, a Vice Presi- establish the title to the estate or interest as insured. If the to the value on Date of Policy of each separate parcel to the dent, the Secretary, ar. Assistant Secretary, or validating Company is prejudiced by the failure of the insured to furnish whole. exclusive of any improvements made subsequent to officer or authorized signatory of the Company. the required cooperation, the Company's obligations to the Date of Policy, unless a liability or value has otherwise been insured under the policy shall terminate, including any liability agreed upon as to each parcel by the Company and the insured 16. SEVERABILITY. or obligation to defend, prosecute, or continue any litigation, at the time of the issuance of this policy and shown by an ex- In the event any provision of the policy is held invalid or with regard to the matter or matters requiring such cooperation. press statement or by an endorsement attached to this policy. unenforceable under applicable law, the policy shall be 9. LIMITATION OF LIABILITY. deemed not to include that provision and all other provisions 5. PROOF OF LOSS OR DAMAGE. shall remain in full force and effect. In addition to and after the notices required under Section 3 (a) If the Company establishes the title, or removes the of these Conditions and Stipulations have been provided the alleged defect, lien or encumbrance, or cures the lack of a right 17. NOTICES, WHERE SENT. Company, a proof of loss or damage signed and sworn to by the of access to or from the land, or cures the claim of unmarket- All notices required to be given the Company and insured claimant shall be furnished to the Company within 90 ability of title, all as insured, in a reasonably diligent manner by any statement in writing required to be furnished the days after the insured claimant shall ascertain thefacts giving any method, including litigation and the completion of any Company shall be addressed to it at is main office at rise to the loss or damage. The proof of loss or damage shall appeals therefrom, it shall have fully performed its obligations 200 S.W Market. Suite 250.Portland. Oregon 97201- describe the defect in, or lien or encumbrance on the title, or with respect to that matter and shall not be liable for any loss 5730. or to the office which issued this policy. other matter insured against by this policy which constitutes or damage caused thereby. SCHEDULE A Policy No.: 373408 Amount of Insurance: $240,000.00 Premium: $805.00 Date of Policy: April 5, 1991 at 3:39 PM 1. Name of Insured: CITY OF TIGARD, a municipal corporation, its successors and assigns as defined in Paragraph 1(a) of the Conditions and Stipulations of this policy.--- 2. The estate or interest in the land which is covered by this policy is: The fee simple estate--- 3. Title to the estate or interest in the land is vested in: CITY OF TIGARD, a municipal corporation--- 4. The land referred to in this policy is described as follows: For legal description see Exhibit "A" attached hereto--- PAGE 1 of Policy (1987) No. 373408 EXHIBIT "A" A tract of land in the East half of Section 2, Township 2 South, Range 1 West of the Willamette Meridian, in the City of Tigard, County of Washington and State of Oregon, described as follows: Beginning at the Northeast corner of that tract of land described in Deed to Edwin J. Johnston recorded November 17, 1922 in Book 125, page 66, Washington County Deed Records; thence North 89° West 7.73 chains to a stake; thence North 1030' East 8 rods; thence East to the center of S.W. Burnham Street; thence Easterly and Southerly along the center of S.W. Burnham Street and along the center of S.W. Hall Blvd., State Highway No. 141 (formerly State Highway No. 217) to the place of beginning. EXCEPT the West 200 feet thereof.--- PAGE 2 of Policy (1987) No. 373408 SCHEDULE B EXCEPTIONS FROM COVERAGE This policy does not insure against loss or damage, (and the Company will not pay costs, attorneys' fees or expenses) which arise by reason of: 1. Taxes or assessments which are not shown as existing liens by the records of any taxing authority that levies taxes or assessments on real property or by the public records; proceedings by a public agency which may result in taxes or assessments, or notices of such proceedings, whether or not shown by the records of such agency or by the public records. 2. Any facts, rights, interests, or claims which are not shown by the public records but which could be ascertained by an inspection of said land or by making inquiry of persons in possession thereof. 3. Easements, encumbrances, or claims thereof, not shown by the public records, unpatented mining claims, reservations or exceptions in patents or in acts authorizing the issuance thereof, water rights, claims or title to water. 4. Any lien, or right to a lien, for services, labor, or material heretofore or hereafter furnished, imposed by law and not shown by the public records. 5. Discrepancies, conflicts in boundary lines, shortage in area, encroachments, or any other facts which a correct survey would disclose. 6. Statutory Powers and Assessments of Unified Sewerage Agency. Note: There are none as of the date of this policy. 7. The rights of the public in and to that portion of the premises herein described lying within the limits of roads, streets and highways. 8. Agreement, including the terms and provisions thereof, Dated February 1, 1979 Recorded February 6, 1979 as Fee No. 79004972 Between Lothar E. Schramm and R. Dean Schmitz and Dorothy Schmitz For Sewer lines PAGE 3 of Policy (1987) No. 373408 SCHEDULE B (Continued) The interests of R. Dean Schmitz and Dorothy Schmitz in the above agreement were assigned by instrument Dated April 5, 1991 Recorded April 5, 1991 as Fee No. 91016459 To City of Tigard, a municipal corporation of the State of Oregon, its successors and assigns 9. Unrecorded leases or periodic tenancies, if any. PAGE 4 of Policy (1987) No. 373408 THIS MAP IS FUR! 13 AS A CONVENIENCE IN LOCATING PROPE 4N0 1 HL WMPANY ` wee ASSUMES NO LIABIu 1Y FOR ANY VARIATIONS AS MAY BE DISCLOSELJ BY ACTUAL SURVEY ~ c First American Title Insurance Company of Oregon In urum*d Dusi vas nome o/ TITLE INSUPANCE COMPANY OF OREGON N 1700 S.W FOURTH AVE. PORTLAND. OR 97201 5511 503) 222 :1651 2S1 2DA SEC 2 2S 1W r` ^ t r at \ v'-r • { ze ♦ is 41 PC _00 1?4 , STREET 'oxdr C 9 \ 0 03 T z"X., o _7_i Ac I \ \ S~ 1 O/1 JI I^ CL 1 O ~ 1 200 h Qom- w 7 73 Cn s es•c Sys _ - - I a 2a_ 33 i yg I Oat 32.0003 PT 401 ti 40. o ; E 5 ZC 96 << 501 .3 90 .Cc 3 w n ~ : r o 402 4- 32.n ~JI:t. t 1 ~ 1 N S 40.10'54• C Z?2 72 c 2 4 r "t t C S ~J. r • o, l 1 h ' t r` > ! m 600 f ! + %+00 ITG l~S ~ ~ M E R , C9 , First Ar..erican Title Insurance Company of Oregon An assumed business name of TITLE INSURANCE COMPANY OF OREGON WASHINGTON COUNTY OFFICES ® BEAVERTON LINCOLN TOWER TANASBOURNE 4650 S.W. Griffith Dr., Suite 100 10260 S.W. Greenburg Rd. Suite 170 2554 N.W. 185th Ave. Beaverton, Oregon 97005-8720 Portland, OR 97223 Portland, Oregon 97229-3579 (503) 641-7000 (503) 244-8323 (503) 645-0320 FAX (503) 627-0921 FAX (503) 244-8377 FAX (503) 645-6351 April 08, 1991 KENNETH M. ELLIOTT, ESQ. O'DONNELL, RAMIS, et al 1727 NW HOYT PORTLAND, OR 97209 Subject: Escrow No.: 9051033 Seller: SCHMITZ, R. DEAN AND DOROTHY Buyer: THE CITY OF TIGARD Dear Mr. Elliott: I am enclosing the following documents regarding the above referenced transaction. 1 - Buyer's and Seller's escrow instructions 2 - Buyer's final closing statement 3 - Executed Statutory Warranty Deed 4 - Original executed Promissory Note 5 - Original executed Agreement for Sale & Purchase Please review the above documents and let me know if there is anything futher that you need. Tom Tough, the escrow officer is on vacation if you have any questions or would like any additonal documents, please let me know. Thank you. Very truly yours, First American Title Insurance Company of Oregon LINCOLN-)TOWER z Rochelle E. Cuellar Escrow Assistant S C A M E R C "2 First American Title Insurance Company of Oregon An assumed business name of TITLE INSURANCE COMPANY OF OREGON WASHINGTON COUNTY OFFICES ® BEAVERTON LINCOLN TOWER TANASBOURNE 4650 S.W. Griffith Dr., Suite 100 10260 S.W. Greenburg Rd. Suite 170 2554 N.W. 185th Ave. Beaverton, Oregon 97005-8720 Portland, OR 97223 Portland, Oregon 97229-3579 (503) 641-7000 (503) 244-8323 (503) 645-0320 FAX (503) 627-0921 FAX (503) 244-8377 FAX (503) 645-6351 April 08, 1991 City Of Tigard 13125 S.W. Hall Blvd P.O. Box 23397 Tigard, OR 97223 Re: R. Dean & Dorothy Schmitz to City of Tigard Property Address: 8720 SW BURNHAM ST TIGARD, OR 97223 Dear Mr. Patrick J. Reilly In connection with the above referenced escrow, we enclose the following: (X) Escrow Closing Statement (Estimated & Final) (X) Our Check No. 49950 in the sum of $19.72 (X) Statutory Warranty Deed form Schmitz to City of Tigard Records of Washington County (X) Buyer & Seller Executed escrow instrutions (X) Note Dated February 7th in the sum of $5,000.00 (X) Copy of the Agreement for Sale & Purchase If you have occasion to call or refer to this escrow, please use the escrow number shown above. It has been a pleasure to have been of service to you in this matter and we trust you will find the enclosed to be in order. The Escrow officer Tom Tough is on vacation for the next two weeks should you need anything further please contact the undersigned. Sincerely, First American Title Insurance Company regon LINCO TOWER Rochelle E. Cuellar Escrow Assistant AMEkICy First American Title Insurance Company of Oregon An assumed business name of TITLE INSURANCE COMPANY OF OREGON WASHINGTON COUNTY OFFICES BEAVERTON LINCOLN TOWER TANASBOURNE 4650 S.W. Griffith Dr., Suite 100 10260 S.W. Greenburg Rd. Suite 170 2554 N.W. 185th Ave. Beaverton, Oregon 97005-8720 Portland, OR 97223 Portland, Oregon 97229-3579 (503) 641-7000 (503) 244-8323 (503) 645-0320 FAX (503) 627-0921 FAX (503) 244-8377 FAX (503) 645-6351 BUYER'S CLOSING STATEMENT ESCROW STATEMENT OF: Escrow: 9051033 THE CITY OF TIGARD, OREGON Escrow Officer: THOMAS E. TOUGH Date: April 04, 1991 Title Order No: 373408 Property Purchased From: R. DEAN SCHMITZ DOROTHY SCHMITZ Property Address: 8720 SW BURNHAM ST TIGARD, OR 97223 ITEMS DEBITS CREDITS TOTAL CONSIDERATION 240,000.00 PRORATIONS/ADJUSTMENTS FROM TO TAX ACCOUNT key no. 468005 FOR TAX YEAR AT $4,664.38 04/05/91 07/01/91 1,111.78 TITLE CHARGES - FIRST AMERICAN TITLE INSURANCE CO. RECORDINGS CONVEYANCE/DEED 38.00 TRANSFER TAX 120.00 ASSIGNMENT RECORDING 18.00 ESCROW CHARGES - FIRST AMERICAN TITLE ESCROW FEE 192.50 BALANCE DUE ESCROW 241,480.28 TOTALS 241,480.28 241,480.28 THE CITY OF TIGARD, OREGON Cer ified to/ /e :a T ue a~xact Copy Delivered to Buyer and/or Seller. Escrow Officer: THOMAS TOUGH LINCOLN TOWER Recording Date: ESTIMATED FOR 4/5/91 r. ~S•t A M E R First American Title Insurance Company of Oregon z An assumed business name of TITLE INSURANCE COMPANY OF OREGON jgvk~' L~ WASHINGTON COUNTY OFFICES " a BEAVERTON LINCOLN TOWER TANASBOURNE 4650 S.W. Griffith Dr., Suite 100 10260 S.W. Greenburg Rd. Suite 170 2554 N.W. 185th Ave. Beaverton, Oregon 97005-8720 Portland, OR 97223 Portland, Oregon 97229-3579 (503) 641-7000 (503) 244-8323 (503) 645-0320 FAX (503) 627-0921 FAX (503) 244-8377 FAX (503) 645-6351 SELLER'S CLOSING STATEMENT ESCROW STATEMENT OF: Escrow: 9051033 R. DEAN SCHMITZ Escrow Officer: THOMAS E. TOUGH DOROTHY SCHMITZ Date: April 05, 1991 Title Order No: 373408 Property Sold To: THE CITY OF TIGARD, OREGON Property Address: 8720 SW BURNHAM ST TIGARD, OR 97223 ITEMS DEBITS CREDITS TOTAL CONSIDERATION 240,000.00 r PRORATIONS/ADJUSTMENTS FROM TO TAX ACCOUNT key no. 468005 FOR TAX YEAR AT $4,664.38 04/05/91 07/01/91 1,111.78 TITLE CHARGES - FIRST AMERICAN TITLE INSURANCE CO. OWNERS STANDARD POLICY FOR $240,000.00 805.00 RECORDINGS CONVEYANCE/DEED 38.00 TRANSFER TAX 120.00 GOVERNMENT SERVICE CHARGE 15.00 ESCROW CHARGES - FIRST AMERICAN TITLE ESCROW FEE 192.50 DOCUMENT PREPARATION FEE 7.50 LENDER CHARGES LOAN PAYOFF TO: Harold E. Reoh and Blenda Reoh PRINCIPAL AMOUNT OF LOAN 24,550.55 PER DIEM @ $5.50 FROM 04/02/91 TO 04/10/91 44.00 TOTAL LOAN PAYOFF 24,594.55 BALANCE DUE YOU 215,339.23 TOTALS 241,111.78 241,111.78 R. DEAN SCHMITZ DOROTHY SCHMITZ Certified to be a True and Exact Copy Delivered to Buyer and/or Seller. ~A l/ Escrow Officer: THOMAS 0 GH LINCOLN TOWER Recording Date: APRIL 5, 1991 FINAL SETTLEMENT STATEMENT SST nMER~c 4 L _ First American Title Insurance Company of Oregon : An assumed business name of TITLE INSURANCE COMPANY OF OREGON WASHINGTON COUNTY OFFICES ® BEAVERTON LINCOLN TOWER TANASBOURNE 4650 S.W. Griffith Dr., Suite 100 10260 S.W. Greenburg Rd. Suite 170 2554 N.W. 185th Ave. Beaverton, Oregon 97005-8720 Portland, OR 97223 Portland, Oregon 97229-3579 (503) 641-7000 (503) 244-8323 (503) 645-0320 FAX (503) 627-0921 FAX (503) 244-8377 FAX (503) 645-6351 BUYER'S CLOSING STATEMENT ESCROW STATEMENT OF: Escrow: 9051033 THE CITY OF TIGARD, OREGON Escrow Officer: THOMAS E. TOUGH Date: April 05, 1991 Title Order No: 373408 Property Purchased From: R. DEAN SCHMITZ DOROTHY SCHMITZ Property Address: 8720 SW BURNHAM ST TIGARD, OR 97223 ITEMS DEBITS CREDITS TOTAL CONSIDERATION 240,000.00 ADDITIONAL DEPOSITS TO ESCROW 241,500.00 PRORATIONS/ADJUSTMENTS FROM TO TAX ACCOUNT key no. 468005 FOR TAX YEAR AT $4,664.38 04/05/91 07/01/91 1,111.78 TITLE CHARGES - FIRST AMERICAN TITLE INSURANCE CO. RECORDINGS CONVEYANCE/DEED 38.00 TRANSFER TAX 120.00 ASSIGNMENT RECORDING 18.00 ESCROW CHARGES - FIRST AMERICAN TITLE ESCROW FEE 192.50 BALANCE DUE YOU 19.72 TOTALS 241,500.00 241,500.00 THE CITY OF TIGARD, OREGON Certified to be a True and Exact Copy Delivered to Buyer and/or Seller. Escrow Officer: THOMAS E.~ OUGH LINCOLN TOWER Recording Date: APRIL 5, 1991 k FINAL SETTLEMENT STATEMENT S~ A M E A 10 First American Title Insurance Company of Oregon An assumed business name of TITLE INSURANCE COMPANY OF OREGON WASHINGTON COUNTY OFFICES BEAVERTON LINCOLN TOWER TANASBOURNE 4650 S.W. Griffith Dr., Suite 100 10260 S.W. Greenburg Rd. Suite 170 2554 N.W. 185th Ave. Beaverton, Oregon 97005-8720 Portland, OR 97223 Portland, Oregon 97229-3579 (503) 641-7000 (503) 244-8323 (503) 645-0320 FAX (503) 627-0921 FAX (503) 244-8377 FAX (503) 645-6351 ESCROW INSTRUCTIONS to FIRST AMERICAN TITLE INSURANCE COMPANY OF OREGON ESCROW NO. 9051033 SELLER R. DEAN SCH_MITZ, DOROTHY SCHMTTZ BUYER THE CITY OF TIGARD, OREGON PROPERTY ADDRESS: 8720 SW BURNHAM ST. TIGARD. OR 97223 PROPERTY DESCRIPTION: COMMONLY KNOWN AS 8720 SW BURNHAM ST. TIGARD OR 97223 THROUGHOUT THESE INSTRUCTIONS, ITEMS LEFT BLANK OR NOT MARKED (X) ARE NOT APPLICABLE. I/We hereby agree to and instruct First American Title Insurance Company of Oregon, escrow agent, hereinafter called First American, as to the following: Buyer's 1. The ATTACHED CLOSING STATEMENTS are made a part of these instructions as if fully set Seller's Initial forth herein. Certain items shown on the closing statements are estimates only and the final Initial figures may be adjusted to accommodate exact amounts required at the time of disbursement. l 2. The undersigned have read and approved a title report covering real property situated in the County of WASHINGTON , State of Oregon, as described in FIRST AMERICAN TITLE INSURANCE CO. preliminary title report N0.373408 dated 02/14/91 , 3. All terms and provisions of the earnest money agreement, amendments or addenda thereto, have been complied with to the complete satisfaction of the undersigned parties or will be ~I complied with outside of escrow. QY 4. In all acts in this escrow relating to fire insurance, including adjustments, if any, First American shall be fully protected in assuming that each policy is in force and that the necessary premium therefor has been paid. 5. It is understood that any unpaid fuel, utility charges including service installation or connection charges for sewer, water or electricity will be adjusted between seller and buyer outside this escrow. ;r 6. Any and all documents that have been prepared by escrow at the parties' request have been reviewed and approved as to content and form by the seller and buyer. 7. ❑ The underlying encumbrance(s) shown on the title report (which encumbrances shall continue as liens against the Property after the close of escrow) may contain terms and provisions that permit the security holder, e.g., the mortgagee, to exercise certain rights, e.g., the right to accelerate payment of the debt. The seller and buyer has been requested by escrow to review these documents and seek legal advice, and the buyer and seller hereby relieve and hold harmless First American from any and all claims, suits, demands, damages, n expenses, including attorney fees, or causes of action arising out of the security holder's - a exercise of the rights contained in the terms and provisions of the encumbrance. n a n /a. 8. ❑ Attached herewith are supplemental escrow instructions. n /a 9. First American, as escrow agent, receives certain benefits as a result of escrow deposits in our escrow trust account. These benefits provide banking services and accounting and computer services. On the average, these benefits amount to approximately $30.00 per h 4TyS~ER escrow. These in kind benefits, which support escrow operations and various costs associated with compliance with state escrow regulations, are utilized to offset the need for higher escrow rates. agent will hand you herewith the following to effect transfer or conveyance of above property to buyer: DEED AND ASSIGNMENT OF SEWER LINES EXECUTED IN FAVOR OF THE PURCHASER HEREIN, APPROVAL OF DISBURSEMENTS AS PER CLOSING STATEMENT, AFFIDAVIT FOR FINANCING STATEMENTS & UNRECORDED LEASES, & IRS 1099 FORM. BUYER/BORROWER or agent will hand you herewith the following to effect transfer or conveyance of above property from the seller: APPROVAL OF DISBURSEMENTS AS PER CLOSING STATEMENT AND FUNDS NECESSARY TO CLOSE. ESCROW NO.9051033 Page 2 When you are in receipt of all of the above, you are instructed to record the documents and disburse funds in accordance with these instructions, and in accordance with the attached closing statements as adjusted. All disbursements shall be made by your check or checks. The balance remaining to be paid to: R. DEAN SCHMITZ DOROTHY SCHMITZ You are authorized and Instructed to Issue the specified title insurance policy or policies, In the specified amounts, to-wit: OWNER'S $ 240, 000.00 MORTGAGEE'S $ PURCHASER'S $ ALTA MORTGAGEE'S $ Showing title vested in: CITY OF IG RD, OREGON, an Oregon municipal corporation Insuring the interest of ciTy OF TI RD, OREGON, an Oregon municipal corporation, as owner free and clear of encumbrances, except building and use restrictions, easements, zoning and building laws and ordinances, if any, printed conditions and exceptions contained in form of title insurance policy herein provided for, ands, 3&5 You are to prorate as of the following date: recording . Please refer to the closing statement attached hereto. The above date is: a ❑ pursuant to the earnest money agreement dated ❑ thereby amending the earnest money agreement dated Miscellaneous Instructions: RENTAL AGREEMENTS AND PREPAID RENTS, IF ANY, WILL BE HANDLED OUTSIDE OF ESCROW. BUY IN TIALS SELLER INITIALS ase The expression "Close of Escrow" means the date on which instruments referred to herein are filed for record. u The principals herein agree to pay any charges, advances and expenses that are properly chargeable to them. At the close of escrow you are to mail all documents, etc. to the persons entitled thereto. You are to furnish a copy of these instructions, amendments thereto, closing statements and/or any other document deposited in this escrow to the lender or lenders and/or the real estate broker or brokers Involved in this transaction upon request of such lenders or brokers. This Is declared to be the essence of these instructions. Any amendment of and/or supplement to these Instructions must be in writing. These instructions constitute the entire escrow between the escrow holder and the parties hereto. Should you before or after close of escrow receive or become aware of any conflicting demands or claims with respect to this escrow or the rights of any of the parties thereto, or any money or property deposited herein or affected hereby, you shall have the right to discontinue any or all further acts on your part until such conflict is resolved to your satisfaction, and you shall have the further right to commence or defend any action or proceedings for the determination of such conflict. The parties hereto jointly and severally agree to pay all costs, damages, judgments, and expenses including reasonable attorney fees, suffered or Incurred by you in connection with, or arising out of this escrow, t including, but without limlting the generality of the foregoing, a suit in Interpleader brought by you. i;l These instructions are effective until may 08,19 91 ranclthereafter u less-revoked-by-w ittefldemand 1 actorl-to-you-and-in accordance-with~eazw"f the-Stata-of-Oregon. I I Q AND WILL EXPIRE AUTOMATICALLY UNLESS EXTENDED BY WRITTEN DEMAND AND AUTHORIZATION ®0 IT IS UNDERSTOOD BY THE PARTIES SIGNING THE ABOVE ESCROW INSTRUCTIONS OR THOSE ESCROW Init INSTRUCTIONS WHICH ARE ATTACHED HERETO THAT SUCH INSTRUCTIONS CONSTITUTE THE WHOLE X_- GREEMENT BETWEEN THIS FIRM AS AN ESCROW AGENT AND YOU AS A PRINCIPAL TO THE ESCROW RANSACTION. THESE INSTRUCTIONS MAY NOT INCLUDE ALL TERMS OF THE AGREEMENT WHICH IS THE SUBJECT TO THIS ESCROW. READ THESE INSTRUCTIONS CAREFULLY, AND DO NOT SIGN THEM UNLESS THEY ARE ACCEPTABLE TO YOU. Dated this 41- day of rl L 19 cl S LLE . DOROT SCHMI Addre s:21465 SW RAMRT.TN, REcK RD SHERWOOD- OR 97140 BUYER: THE CITY OF IGARD OREGON' ~ - c' Address: 7 G-RD OR 97923 _E 0. Bf~ 2339 / TI( f We h r by acknowledge receipt of the above money, documents and instructions, this K day of 10,CI L, Please I t a119--- o / X First American Title Insurance Company of Oregon By L ~J THOMAS E. TOUGH LINGO OW89jow Officer ON TO YOU AND IN ACCORDANCE WITH THE LAWS OF THE STATE OF OR *S . r~ ~ Q S A M E R C First American Title Insurance Company of Oregon An assumed business name of TITLE INSURANCE COMPANY OF OREGON WASHINGTON COUNTY OFFICES ® BEAVERTON LINCOLN TOWER TANASBOURNE 4650 S.W. Griffith Dr., Suite 100 10260 S.W. Greenburg Rd. Suite 170 2554 N.W. 185th Ave. Beaverton, Oregon 97005-8720 Portland, OR 97223 Portland, Oregon 97229-3579 (503) 541-7000 (503) 244-8323 (503) 645-0320 FAX (503) 627-0921 FAX (503) 244-8377 FAX (503) 645-6351 ESCROW INSTRUCTIONS to FIRST AMERICAN TITLE INSURANCE COMPANY OF OREGON ESCROW NO. 9051033 SELLER R. DEAN S . MT , DOROTHY SC MIT . BUYER THE CITY OF TIGARD, OREGON i PROPERTY ADDRESS: 8720 SW BURNHAM ST. TIGARD. OR 97223 PROPERTY DESCRIPTION: COMMONLY KNOWN AS 8720 SW BURNHAM ST. TIGARD OR 97223 THROUGHOUT THESE INSTRUCTIONS, ITEMS LEFT BLANK OR NOT MARKED.(X) ARE NOT APPLICABLE. I/We hereby agree to and instruct First American Title Insurance Company of Oregon, escrow agent, hereinafter called First American, as to the following: Buyer's 1. The ATTACHED CLOSING STATEMENTS are made a part of these instructions as if fully set Seller's Initial forth herein. Certain items shown on the closing statements are estimates only and the final Initial figures may be adjusted to accommodate exact amounts required at the time of disbursement. 2. The undersigned have read and approved a title report covering real property situated in the County of WASHINGTON , State of Oregon, as described in FIRST AMERICAN TITLE INSURANCE CO. preliminary title report N0.373408 dated 02/14J91 3. All terms and provisions of the earnest money agreement, amendments or addenda thereto, have been complied with to the complete satisfaction of the undersigned parties or will be complied with outside of escrow. 4. In all acts in this escrow relating to fire insurance, including adjustments, if any, First American shall be fully protected in assuming that each policy is in force and that the necessary premium therefor has been paid. 5. It is understood that any unpaid fuel, utility charges including service installation or connection charges for sewer, water or electricity will be adjusted between seller and buyer outside this escrow. 6. Any and all documents that have been prepared by escrow at the parties' request have been reviewed and approved as to content and form by the seller and buyer. 7. ❑ The underlying encumbrance(s) shown on the title report (which encumbrances shall continue as liens against the Property after the close of escrow) may contain terms and provisions that permit the security holder, e.g., the mortgagee, to exercise certain rights, e.g., the right to accelerate payment of the debt. The seller and buyer has been requested by escrow to review these documents and seek legal advice, and the buyer and seller hereby relieve and hold harmless First American from any and all claims, suits, demands, damages, expenses, including attorney fees, or causes of action arising out of the security holder's n a exercise of the rights contained in the terms and provisions of the encumbrance. n a n /a g, ❑ Attached herewith are supplemental escrow instructions. n /a 9. First American, as escrow agent, receives certain benefits as a result of escrow deposits in our escrow trust account. These benefits provide banking services and accounting and computer services. On the average, these benefits amount to approximately $30.00 per escrow. These in kind benefits, which support escrow operations and various costs associated with compliance with state escrow regulations, are utilized to offset the need for higher escrow rates. SELLER or agent will hand you herewith the following to effect transfer or conveyance of above property to buyer: WARRANTY DEED AND ASSIGNMENT OF SEWER LINES EXECUTED IN FAVOR OF THE PURCHASER HEREIN, APPROVAL OF DISBURSEMENTS AS PER CLOSING STATEMENT, AFFIDAVIT FOR FINANCING STATEMENTS & UNRECORDED LEASES, & IRS 1099 FORM. BUYER/BORROWER or agent will hand you herewith the following to effect transfer or conveyance of above property from the seller: APPROVAL OF DISBURSEMENTS AS PER CLOSING STATEMENT AND FUNDS NECESSARY TO CLOSE. ESCROW NO 9051033 Page 2 When you are in receipt of all of the above, you are instructed to record the documents and disburse funds in accordance with these instructions, and in accordance with the attached closing statements as adjusted. All disbursements shall be made by your check or checks. The balance remaining to be paid to: R. DEAN SCHMITZ DOROTHY SCHMITZ You are authorized and instructed to issue the specified title insurance policy or policies, in the specified amounts, to-wit: OWNER'S $ 240, 000.00 MORTGAGEE'S $ PURCHASER'S $ ALTA MORTGAGEE'S $ Showing tide vested in: CITY OF TIG RD, OREGON, an Oregon municipal corporation Insuring the Interest of CITY OF TIGAgp OREGON, an Oregon municipal corporation, as owner free and clear of encumbrances, except building and use restrictions, easements, zoning and building laws and ordinances, If any, printed conditions and exceptions contained in form of title insurance policy herein provided for, and 2. 3 & 5 You are to prorate as of the following date: recording . Please refer to the closing statement attached hereto. The above date is: ❑ pursuant to the earnest money agreement dated ❑ thereby amending the earnest money agreement dated Miscellaneous Instructions: RENTAL AGREEMENTS AND PREPAID RENTS, IF ANY, WILL BE HANDLED OUTSIDE OF ESCROW. BUYER INITIALS SELLER INITIALS The expression "Close of Escrow" means the date on which instruments referred to herein are filed for record. The principals herein agree to pay any charges, advances and expenses that are properly chargeable to them. At the close of escrow you are to mail all documents, etc. to the persons entitled thereto. You are to furnish a copy of these Instructions, amendments thereto, closing statements and/or any other document deposited In this escrow to the lender or lenders and/or the real estate broker or brokers Involved In this transaction upon request of such lenders or brokers. This Is declared to be the essence of these Instructions. Any amendment of and/or supplement to these Instructions must be In writing. These Instructions constitute the entire escrow between the escrow holder and the parties hereto. Should you before or after close of escrow receive or become aware of any conflicting demands or claims with respect to this escrow or the rights of any of the parties thereto, or any money or property deposited herein or affected hereby, you shall have the right to discontinue any or all further acts on your part until such conflict Is resolved to your satisfaction, and you shall have the further right to commence or defend any action or proceedings for the determination of such conflict. The parties hereto jointly and severally agree to pay all costs, damages, judgments, and expenses Including reasonable attorney fees, suffered or Incurred by you In connection with, or arising out of this escrow, Including, but without limiting the generality of the foregoing, a suit in interpleader r ught b ou. wi~iexpire automatni~~p~aAly These Instructions are effective until May 08, 19 91 and/thereafter, unlesslie+~cliy written demand and authorization satisfactory to you and in accordance with the laws of the State of Oregon. IT IS UNDERSTOOD BY THE PARTIES SIGNING THE ABOVE ESCROW INSTRUCTIONS OR THOSE ESCROW INSTRUCTIONS WHICH ARE ATTACHED HERETO THAT SUCH INSTRUCTIONS CONSTITUTE THE WHOLE AGREEMENT BETWEEN THIS FIRM AS AN ESCROW AGENT AND YOU AS A PRINCIPAL TO THE ESCROW TRANSACTION. THESE INSTRUCTIONS MAY NOT INCLUDE ALL TERMS OF THE AGREEMENT WHICH IS THE SUBJECT TO THIS ESCROW. READ THESE INSTRUCTIONS CAREFULLY, AND DO NOT SIGN THEM UNLESS THEY ARE ACCEPTABLE TO YOU. Dated this day of .19. SELLER: R. DEAN SCHMITZ DOROT SCHMITZ Address: 21465 SW AMBT.TN' Ec.K D , sHERWOOD, OR 97140 BUYER: THE CITY OF TIGARD, OREGON Address: P.O. Box 23397 TTGA`RD OR 9722' We hereby acknowledge receipt of the above money, documents and instructions, this day of 19 First American Title Insurance Company of Oregon By THOMAS E. TOUGH LINCOLN TOT+ERrow Officer S C AM E A I C First American Title Insurance Company of Oregon An assumed business name of TITLE INSURANCE COMPANY OF OREGON WASHINGTON COUNTY OFFICES BEAVERTON LINCOLN TOWER TANASBOURNE 4650 S.W. Griffith Dr., Suite 100 10260 S.W. Greenburg Rd. Suite 170 2554 N.W. 185th Ave. Beaverton, Oregon 97005-8720 Portland, OR 97223 Portland, Oregon 97229-3579 (503) 641-7000 (503) 244-8323 . (503) 645-0320 FAX (503) 627-0921 FAX (503) 244-8377 FAX (503) 645-6351 BUYER'S CLOSING STATEMENT ESCROW STATEMENT OF: Escrow: 9051033 THE CITY OF TIGARD, OREGON Escrow Officer: THOMAS E. TOUGH Date: April 03, 1991 Title Order No: 373408 Property Purchased From: R. DEAN SCHMITZ DOROTHY SCHMITZ Property Address: 8720 SW BURNHAM ST TIGARD, OR 97223 ITEMS DEBITS CREDITS TOTAL CONSIDERATION 240,000.00 PRORATIONS/ADJUSTMENTS FROM TO TAX ACCOUNT key no. 468005 FOR TAX YEAR AT $4,664.38 04/08/91 07/01/91 1,073.44 TITLE CHARGES - FIRST AMERICAN TITLE INSURANCE CO. RECORDINGS CONVEYANCE/DEED 38.00 TRANSFER TAX 120.00 ASSIGNMENT RECORDING 18.00 ESCROW CHARGES - FIRST AMERICAN TITLE ESCROW FEE 192.50 BALANCE DUE ESCROW 241,441.94 TOTALS 241,441.94 241,441.94 THE CITY OF TIGARD, OREGON Certified to be a True and Exact Copy Delivered to Buyer and/or Seller. Escrow Officer: THOMAS E. TOUGH LINCOLN TOWER Recording Date: ESTIMATED FOR 4/8/91 A M E 1? 91016458 Q y Washington County ~ L STATUTORY WARRANTY DEED 91019636 Washington County R. DEAN SCHMITZ AND DOROTHY SCHMITZ, husband and wife Grantor, conveys and warrants to CITY OF TIGARD, OREGON, an Oregon municipal corporation Grantee, `f! the following described real property free of liens and encumbrances, except as specifically set forth herein: SEE ATTACHED DESCRIPTION "EXHIBIT A". This Warranty Deed is being re-recorded to correct the legal decription recorded tty hlrst American Title Insura.-;ce C~r~Uany sf Oregu; 11A 3 a 4- 1 This property is free of liens and encumbrances, EXCEPT: Statutory Powers and Assessments of the Unified Sewerage Agency; The rights of the public in and to that portion of the premises lying within the limits of roads, streets and highways; and An Agreement recorded as fee no. 79004972. THIS INSTRUMENT WILL NOT ALLOW USE OF THE PROPERTY DESCRIBED IN THIS INSTRUMENT IN VIOLATION OF APPLICABLE LAND USE LAWS AND REGULATIONS. BEFORE SIGNING OR ACCEPTING THIS INSTRUMENT, THE PERSON ACQUIRING FEE TITLE TO THE PROPERTY SHOULD CHECK WITH THE APPROPRIATE CITY OR COUNTY PLANNING DEPARTMENT TO VERIFY APPROVED USES. The true consideration for this conveyance is $ 240,000.00 (Here comply with the requirements of ORS 93.030) Dated this h day of APR t L 199 R. DEAN SCHMIT DORO HY SC TZ STATE OF OREGON County of WASHINGTON }ss. BE IT REMEMBERED, That on this 1t-k day of /4 P K t l_ , 19 9 before me, the undersigned, a Notary Public in and for said County and State, personally appeared the within named R. Dean Schmitz and Dorothy Schmitz known to me to be the identical individual described in and who executed the within instrument and acknowledged to me that THEY executed the same freely and voluntarily. IN TESTIMONY WHEREOF, I have hereunto set my hand and affixed my official seal the day and year last above written. Or FiCIAL `TEAL T.-! ^ ~r"S IL-. 101JASN NO r,v t uB c o,awN \ k Public or Oregon. My Commission expires Illy Title Order No. 373408 Escrow No. 9051033 THIS SPACE RESERVED FOR RECORDER'S USE After recording return to: THE CITY OF TIGARD P.O. BOX 23397 TIGARD OR 97223 Name, Address, Zip Until a change is requested all tax statements shall be sent to the following address. THE CITY OF TIGARD P 0 BOX 2339 TIGARD OR 9 223 Name, Address, Zip /r i Order No. 373408 EXHIBIT "A" A tract of land in the East half of Section., Township 2 South, Range 1 West of the Willamette Meridian, in the City of Tigard, County of Washington and State of Oregon, described as follows: Beginning at the Northeast corner of that tract of land described in Deed to Edwin J. Johnston recorded November 17, 1922 in Book 125, page 66, Washington County Deed Records; thence North 89° West 7.73 chains to a stake; thence North 1°30' East 8 rods; thence East to the center of S.W. Burnham Street; thence Easterly and Southerly along the center of S.W. Burnham Street and along the center of State Highway No. 217 to the place of beginning. EXCEPT the West 200 feet thereof. i STATE OF OREGON l County of Washington / SS ¢ f i, Jerry R. Hanson, Director of Amassment and Taxation and Ex-Off icio Reco; er of Con- veyances for said county, do heresy certify that the within instrument of writ was received and recorded in book of recgfds of said county. .d' Jerry Ry' Hanson, Director of Asses offient and Taxation, Ex- Off County Clerk r 04, 1991 APR -5 PH 3= 39 i EXHIBIT "A" A tract of land in the East half of Section 2, Township 2 South, Range 1 West of the Willamette Meridian, in the City of Tigard, County of Washington and State of Oregon, described as follows: Beginning at the Northeast corner of that tract of land described in Deed to Edwin J. Johnston recorded November 17, 1922 in Book 125, page 66, Washington County Deed Records; thence North 89° West 7.73 chains to a stake; thence North 1°30' East 8 rods; thence East to the center of S.W. Burnham Street; thence Easterly and Southerly along the center of S.W. Burnham Street and along the center of S.W. Hall Blvd., State Highway No. 141 (formerly State Highway No. 217) to the place of beginning. EXCEPT the West 200 feet thereof.--- AL STATE OF OREGON County of Washington SS I, Jerry R. Hanson, Director of Assessment and Taxation and Ex-Off icio Recorder of Con- veyances for said county, do hereby certify that the within instrument of writing was received and recorded in book of records of said county. Jerry R. Hanson, Director of Assessment and Taxation. Ex. Officio County Clerk Doc : 910:19636 Rect: 52904 23.00 04/22/1991 10:43:04AM PAGE 2 of Policy (1987) No. 373408 O'DC,_ i,;ELL, R.AMIS, CREW & COrkIGAN r40- < JEFF H. BACHRACH ATTORNEYS AT LAW BALI & WRIGHT BUILDING CLACKAMAS COUNTY OFFICE CHARLES E. CORRIGAN* 1727 N.W Hoyt N.W. Hoyt Stmt 181 N. Grant, Suite 202 172 STEPHEN F. CREW Portland, Oregon 97209 Canby, ( 03)Oregon 6 1149 13 CHARLES M. GREEFF WILLIAM A. MONAHAN TELEPHONE: (503) 2224402 NANCY B. MURRAY FAX: (503) 243-2944 MARK P. O'DONNELL JAMES M. COLEMAN TIMOTHY V. RAMIS PLEASE REPLY TO PORTLAND OFFICE KENNETH M. ELLIOTT SHEILA C. RIDGWAY* GARY M. GEORGEFF* MICHAEL C. ROBINSON** ROBERT J. McGAUGHEY* WILLIAM J. STALNAKER May 24, 1991 special counsel *ALSO ADMrrrW M PRAMM IN SMS OF WASHMMN -ALSO ADWrnW TO MAO= N W5 DN Ms. Cathy Wheatley City Clerk City of Tigard P. O. Box 23397 Tigard, Oregon 97223 Re: City of Tigard - Schmitz, R. Dean and Dorothy Dear Cathy: I have enclosed the original Assignment from Mr. and Mrs. Schmitz of their interest in the Schramm sewer line. The Assignment was recorded on April 5, 1991, as Washington County Recorder's Fee No. 91016459. Please file the Assignment in the same place that the original deed from Mr. and Mrs. Schmitz to the City of Tigard is being kept. Thank you. Sincerely yours, O' ONNEL , RA#IIS, CREW & CORRIGAN rrl1 s /i,/~ J I;! KAh Elliott KME/jjs Enclosure cc: Patrick Reilly (w/enc) tae\90024\7\ckrUt r7 -IF", ' rip, MAY 2 8 1991 ULL_3 i, :,'~.I Eli 91016459 Washington County A S S I G N M E N T Reference is hereby made to that certain Agreement (herein- after "the Agreement") dated February 1, 1979 and recorded February 6, 1979 as Fee No. 79004972, Real Property Records of Washington County, Oregon, wherein the parties are Lothar E. Schramm and R. Dean Schmitz and Dorothy Schmitz. The Agreement 7>4 governs the Schmitz' connection to and use of a certain sewer line which is located upon certain real property then owned by Schramm. 1 For valuable consideration, receipt and sufficiency of which ~i are acknowledged, R. Dean Schmitz and Dorothy Schmitz hereby II assign, convey and transfer to City of Tigard, a municipal corporation of the State of Oregon, its successors and assigns, all of their right, title and interest in the Agreement and in the sewer line (including but not limited to the use thereof), effective upon their execution of this instrument. Mr. and Mrs. c= Schmitz represent and warrant that they have the full right, power, legal capacity and authority to ke and execute this Assignment, no approval or consent o ny other person is necessary in connection herewith, and e c nsideration required by the Agreement has been paid in full. Dated this SUN day of April, 1 1. Td n i ~ R. DEAN SCHMITZ DORO SCHMITZ -,'t STATE OF OREGON ss: County of Washington ) The foregoing instrument was acknowledged before me on the day of April, 1991 by R. Dean Schmitz and Dorothy Schmitz. Notary ublic for Oregon My commission expires: y~ Ztp ( ~f STATE OF OREGON ll AFTER R$CORDING RETURN TO: County of Washington 1 SS KeoY eth M. Elliott I, Jerry R. Hanson, Director of Assessment and Taxation and Ex-Off icio Recorder of Con- 1727 N. W. Hoyt Street veyances for said county; do hereby certify that Portland, OR 97209 the within instrument of writing was received and recorded in book of records of said county. Jerry R. Hanson, Director of Assessment and Taxation, Ex- Officio County Clerk 1991 AP ; -5 Phi 3: 39 PROMISSORY NOTE $5,000.00 Tigard, Oregon February 1991 FOR VALUE RECEIVED, the undersigned promises to pay to R. DEAN SCHMITZ and DOROTHY SCHMITZ, husband and wife, at Tigard, Oregon, or such other place as may be designated in writing by the holder of this Note, the principal sum of Five Thousand and no/100 Dollars ($5,000.00) upon satisfaction or waiver of the purchaser's contingencies in that certain Agreement for Sale and Purchase dated January 3_, 1991. In tree event that suit or action is instituted by the holder of this Note to enforce this Note, the undersigned agrees to pay, in addition to costs and expenses provided by statute or otherwise, such sums as the court may adjudge reasonable as attorneys' fees in such proceedings and on any appeals from any judgment or decree entered therein. Further, in the event of default in any payment, whether or not suit or action is instituted, the undersigned promises to pay all costs of collecting such delinquent payment. The undersigned and every endorser and guarantor waive protest, presentment, demand and notice of nonpayment and expressly agree that this Note or any payment under this Note may be extended from time to time without in any way affecting the liability of the maker, endorsers or guarantors of this Note. This Note has been executed and delivered in Oregon and shall be governed and construed in accordance with the laws of the State of Oregon. THE CITY OF TIGARD, OREGON, an Oregon munici corporat' n By: Pat ick J. illy, City Adm' istrator t7o/tigard/schmitz. P n ..fin , ~i~►~{.~ LPL 0~- 9J AGREEMENT FOR SALE AND PURCHASE DATED: January -3 1 , 1991. BETWEEN: R. DEAN SCHMITZ and DOROTHY SCHMITZ, husband and wife ("SELLER"), and THE CITY OF TIGARD, OREGON, an Oregon municipal corporation ("PURCHASER"). Seller agrees to sell to Purchaser that certain improved real property situated in the City of Tigard, Washington County, State of Oregon, consisting of .78 acres, more or less, located at 8720 S.W. Burnham Street, Washington County Assessor's Map 2S1 2DA, Tax Lot No. 200, ("the Property"), and which is more particularly described as follows: SEE THE ATTACHED EXHIBIT "A," INCORPORATED BY REFERENCE AS IF FULLY SET FORTH. NOW, THEREFORE, IN CONSIDERATION OF THE MUTUAL PROMISES SET FORTH IN THIS AGREEMENT, THE PARTIES AGREE AS FOLLOWS: 1. PURCHASE AND SALE OF PROPERTY Seller agrees to sell the Property and Purchaser agrees to purchase the Property from Seller on the terms and conditions set forth in this Agreement at the purchase price set forth in this Agreement. The Property shall consist of the following components: (A) The real property more particularly described in Exhibit "A" ("Real Property"); (B) All buildings, fixtures and improvements to the Real Property, including, but not limited to, an office/warehouse building and a residential dwelling. Page 1 - AGREEMENT FOR SALE AND PURCHASE 2. EARNEST MONEY PAYMENT Upon execution of this Agreement, Seller and Purchaser shall deposit the original of this Agreement with a licensed escrow agent and title insurance company. The parties designate First American Title Insurance Company, Lincoln Tower Office, 10260 S. W. Greenberg Road, Tigard, Oregon 97223 as escrow agent and title insurance company (hereinafter "Escrow Agent"). Upon execution of this Agreement, Purchaser shall deposit with Escrow Agent its promissory note in the amount of FIVE THOUSAND DOLLARS ($5,000.00), which note is to be redeemed upon satisfaction of the Purchaser's preconditions set forth in paragraph 4 hereof. Upon redemption of the note, the earnest money will be placed in an interest-bearing account by Escrow Agent in escrow. Said amount, including accrued interest, shall be applicable to the Purchase Price and shall be delivered to the Seller only upon the closing of title hereunder or a default hereunder by the Purchaser. In all other events, including, without limitation, default by Seller or cancellation of this Agreement resulting from Seller's breach of warranties or representations set forth in paragraphs 5, 6, 7, and 8, said amount shall be promptly refunded to the Purchaser, together with the interest earned thereon, without the necessity of any further instrument of instruction to Escrow Agent. The sole responsibility of Escrow Agent shall be to hold and disburse said amount in accordance with the provisions of the Agreement and, if a dispute should arise with respect to the disposition thereof, Escrow Agent shall hold said amount subject Page 2 - AGREEMENT FOR SALE AND PURCHASE ~ r to determination of the dispute by a court of competent jurisdic- tion or until receipt of joint instructions from the Seller and the Purchaser with respect to the disposition of said amount. 3. PURCHASE PRICE AND PAYMENT OF PURCHASE PRICE (A) Purchase Price. The purchase price for the Property is TWO HUNDRED FORTY THOUSAND DOLLARS ($240,000.00). (B) Payment of Purchase Price. Purchaser shall pay the balance of the Purchase Price in full, in cash at closing, after crediting the earnest money deposit and interest accrued thereon, in accordance with paragraph 2. 4. PRECONDITIONS TO PURCHASER'S OBLIGATIONS Purchaser's obligation to purchase the Property is subject to the occurrence of all of the following conditions precedent: (A) Purchaser shall have thirty (30) days after execution of this Agreement to satisfy Purchaser regarding the preliminary suitability for Purchaser's use and development of the Property from engineering, utility service, land use and economic standpoints. This condition precedent is for the benefit of Purchaser and Purchaser's decision of feasibil- ity shall be conclusive. (B) Approval by Purchaser's legal counsel of Seller's title and all exceptions to Seller's title. Purchaser shall remove this contingency within fifteen (15) days of receipt of the preliminary title report, legible copies of all title exceptions listed on said report, the survey described in paragraph 6(A) of this Agreement and a certified Uniform Page 3 - AGREEMENT FOR SALE AND PURCHASE ~ r Commercial Code search, all of which are attached hereto as Exhibit "A;" - (C) Determination by Purchaser's environmental con- sultant that the Property is not subject to "hazardous materials" or any "hazardous materials contamination" as those terms are defined in paragraph 8(K). Purchaser shall make this determination after delivery to Purchaser of any environmental site assessments, hazardous materials reports or any other environmental reports that Seller or its predecessors in interest have knowledge of or had conducted on the Property. Seller has disclosed to Purchaser the presence of an underground storage tank on the Property. Seller agrees to remove the tank, at Seller's expense. Purchaser will then conduct, at Purchaser's expense, a Level 1 Environmental Audit to determine if there is any soils contamination from the tank, PCB's or other hazardous materials that may have been stored upon the Property by Seller. If other underground storage tanks on the Property are discovered by the Audit, Seller agrees to remove any said tanks, at Seller's expense, prior to Closing. This condition precedent shall be removed within thirty (30) days of Purchaser's receipt of the Level 1 Environmental Audit, unless additional time is required to remove tanks or contaminated soil, in which event the deadline for removal of this condition precedent shall be extended until such operations are completed; Page 4 - AGREEMENT FOR SALE AND PURCHASE (D) Seller's delivery, Purchaser's approval and the parties' completion of all exhibits set forth in paragraph 19 of this Agreement. (E) All of the representations, warranties and covenants of the Seller contained in this Agreement shall be true and correct as of the date hereof and as of the Closing Date as if made on the Closing Date; (F) All of the obligations of the Seller contained in this Agreement shall have been fully performed by or on the Closing Date in compliance with the terms of this Agreement; and (G) The conditions precedent set forth in this paragraph 4 are for the sole benefit of Purchaser and Purchaser may waive any or all of these conditions precedent by written notice to Seller. 5. CLOSING This transaction shall be closed on or before the 20th day of February, 1991, or within fifteen (15) days from the date of the fulfillment and occurrence of all of the conditions precedent as set forth in paragraphs 4, 7 and 8 of this Agreement. Closing shall take place at the offices of the Escrow Agent set forth in paragraph 2 of this Agreement. Closing shall take place in the manner set forth in this Agreement. At closing, Escrow Agent shall prorate ad valorem Real Property taxes as of the closing date. Seller shall pay at closing any and all levies, assessments or improvement bonds encumbering the Property, unless they have been Page 5 - AGREEMENT FOR SALE AND PURCHASE specifically disclosed to Purchaser and included as part of the Purchase Price. The parties shall share equally the costs of escrow and any tax imposed upon the transfer or sale of the Real Property. Each party shall pay for its own attorney's fees incurred in drafting this agreement and negotiating the sale and purchase. Purchaser shall pay the cost of recording the Statutory Warranty Deed. Seller shall obtain and deliver to Purchaser at Closing the following documents: (A) Title Documents. Such documents, including, without limitation, lien waivers, indemnity bonds, indemnification agreements and certificates of good standing as shall be reasonably requested by the title insurer as a condition to its insuring Seller's good and marketable title to the property free of any exceptions, other than the permitted exceptions; (B) Authority. Such evidence as the title insurer shall reasonably require as to the authority of Seller to convey the property to Purchaser; (C) Deed. Seller's Statutory Warranty Deed conveying fee title in the Property to Purchaser; (D) Title Policy. The owner's title insurance policy referred to in paragraph 6 of this Agreement, and (E) Assignment Agreement. An assignment of Seller's rights and interest under that certain Agreement for the provision of sewer lines, between Lothar E. Schramm and Page 6 - AGREEMENT FOR SALE AND PURCHASE ' I Seller, dated February 1, 1979, and recorded February 6, 1979, as Washington County Fee No. 79004972. 6. TITLE AND SURVEY MATTERS (A) Survey. Purchaser shall have the right to obtain, at Purchaser's expense, a certified A.L.T.A. boundary survey (the "Survey") of the Real Property prepared by a licensed or registered surveyor. The survey shall be sufficient to cause the Escrow Agent to delete, to the extent permitted by title insurance regulations, the printed exceptions for encroachments, overlaps, boundary line disputes, and any matters which would be disclosed by an accurate survey in the title policy to be delivered by Seller at closing. Purchaser shall deliver a copy of the survey to Seller. (B) Preliminary Title Report. No more than fifteen (15) days after the opening of escrow as defined in paragraph 2, Seller, at Seller's expense, shall furnish to Purchaser a Preliminary Title Report issued by Escrow Agent, describing the Property, listing the Purchaser or the Purchaser's designee as the prospective named insured and showing as the policy amount the total purchase price. At the same time, Escrow Agent shall also deliver to Purchaser copies of any financing statements filed against the property, as well as true, correct and legible copies of all instruments referred to in such Preliminary Title Report as conditions or excep- tions to title to the Property, including liens. Page 7 - AGREEMENT FOR SALE AND PURCHASE C Title Objections. In the event the Preliminary Title Report should show any exceptions other than the permitted exceptions (as defined in subparagraph (D) of this paragraph 6), Purchaser shall have fifteen (15) days after receipt of the Preliminary Title Report or Survey to approve or disapprove the exception(s), which shall be at Purchaser's sole discretion. Failure of Purchaser to disapprove any exception within the fifteen (15) day time limit shall be deemed an approval. In the event Purchaser does not approve said exceptions and Seller is unable to remove the same with the exercise of due diligence prior to the closing date, the Purchaser, in Purchaser's sole discretion, has the following cumulative and nonexclusive remedies: M Purchaser may suspend performance of its obligations under this Agreement, at no cost to Pur- chaser, and extend the closing date until said exceptions have been removed by Seller; (ii) Purchaser may attempt to remove the exceptions and sums reasonably expended by Purchaser, including reasonable attorney's fees, in removing said exceptions shall be credited against the purchase price payable at closing, in which event the closing date shall be extended until said exceptions have been removed. Purchaser shall be entitled to a credit against the unpaid balance of the purchase price for all such sums Page 8 - AGREEMENT FOR SALE AND PURCHASE expended with interest thereon at the lesser of nine (9%) per cent per annum or Purchaser's interest and finance costs for obtaining the necessary funds for the expendi- ture of such sums from the date of payment; (iii) Purchaser may terminate this Agreement and maintain an action for damages for breach of contract, including, without limitation, Purchaser's loss of its bargain under this Agreement; (iv) Purchaser may elect to proceed to closing on that portion of the Real Property not affected by the disapproved exception to Purchaser's title and defer and otherwise suspend, at no cost to Purchaser, Purchaser's performance and obligations under this Agreement until said disapproved exception(s) to Purchaser's title is otherwise cured or removed; (v) Purchaser may terminate this agreement and all of the rights and obligations of the parties under this Agreement shall be null and void; (vi) Purchaser may maintain an action for specific performance of this Agreement. In no event shall Seller be required to remove or to reimburse Purchaser for the removal of any lien or other exception to title created by Purchaser's activities with respect to the Property. (D) Permitted Exceptions. As used herein, the term "Permitted Exceptions" means: Page 9 - AGREEMENT FOR SALE AND PURCHASE (i) The standard printed exceptions contained in the Preliminary Title Report of only zoning ordinances, building and use restrictions, reservations and federal patents, utility easements of record, and exceptions 1, 2, 3, 4, and 6 set forth in First American Title Insurance Company of Oregon's Preliminary Title Report No. 373408, dated September 20, 1990; (ii) The printed exception for "encroachments, overlaps, boundary line disputes, and any matters which would be disclosed by an accurate survey and inspection of the premises" to the extent allowed by the rules and regulations of the state in which the property is located; (iii) The standard exception as to the lien for taxes shall be limited to the period during which closing is scheduled to occur for which said taxes are not yet due and payable; (iv) Rights of parties in possession; (v) Any exception contained in the Preliminary Title Report which has been approved by Purchaser; and (vi) Any lien or encumbrance from Purchaser to Seller. (E) Title Policy. At the closing, Seller shall cause an A.L.T.A. Owner's Title Policy to be furnished to Purchaser. The Owner's Title Policy shall be issued in the amount of the total purchase price and shall insure Purchaser's legal title Page 10 - AGREEMENT FOR SALE AND PURCHASE to the Property, subject only to the permitted exceptions. The standard exception as to the lien for taxes shall be limited to the period during which closing occurs for which said taxes are not yet due and payable and shall be endorsed "Not Yet Due and Payable." 7. CLOSING CONDITIONS Purchaser's obligation to purchase the Property is subject, at Purchaser's discretion, to occurrence and satisfaction of each of the following conditions precedent: (A) All of the representations, warranties and covenants of Seller contained herein shall be true, accurate and complete as of the date hereof and as of the closing date as if made on the closing date; (B) Seller shall have performed all obligations to be performed by it hereunder on or before the closing date; (C) All of the conditions precedent set forth in paragraph 4 of this Agreement have been fulfilled or have otherwise occurred or been waived by Purchaser; and (D) At the closing date, Seller shall be able to deliver title to the property in the condition required by paragraph 6 of this Agreement. 8. REPRESENTATIONS AND WARRANTIES Seller covenants with, represents and warrants to Purchaser, who relies thereon, which covenants, representations and warranties shall be deemed made by Seller to Purchaser as of the date hereof and the closing date, the following: Page 11 - AGREEMENT FOR SALE AND PURCHASE (A) Title. Seller warrants good and marketable title, good right to convey, quiet possession and further warrants that no work, labor or materials have been expended, bestowed or placed upon the Property, adjacent thereto or within any existing or proposed assessment district which either remain unpaid or for which a lien may be filed; (B) Claims Against Title. Seller has no knowledge nor has Seller been made aware of any claim against its title by any third person or any other person, and Seller is unaware of any claim of adverse possession to any portion of the Real Property. Seller shall further disclose in writing to Purchaser all claims of title adverse and inconsistent with Seller's claim of title and warranties as set forth in this Agreement, which claims have been made during the preceding ten (10) years from the date of this Agreement and of which Seller has knowledge. Such disclosures shall be made in writing prior to the execution of this Agreement and attached hereto as Exhibit "C." Purchaser acknowledges that it was a party to a boundary line dispute with Seller within the past ten (10) years, which dispute was settled amicably. Seller's warranty and agreement to disclose claims contained in this paragraph shall not apply to any claims advanced by Purchaser; (C) Parties in Possession. As of the closing date, there will be no parties or trespassers in possession of any of the Property, and there will be no leases affecting the Property. The residential dwelling is presently rented on a Page 12 - AGREEMENT FOR SALE AND PURCHASE month-to-month tenancy. Seller will provide the tenants with 30-days' written notice of termination on the Closing Date; (D) Authority of Seller. Seller has the authority to execute this Agreement, to enter into the escrow contemplated herein and to perform all of Seller's obligations hereunder; (E) Option to Accruire Premises. No person or entity has any right of first refusal or option to acquire any interest in the property or any part thereof; (F) Other Contracts or Agreements. As of the date hereof and the closing date, there shall be no contracts, licenses, commitments or undertakings respecting maintenance of the Property of equipment on the Property, the performance of services on the Property or the use of the Property or any part of it by which Purchaser would become obligated or liable to any person, except as disclosed in Exhibit "D" hereto. Seller has not committed nor obligated itself in any manner whatsoever to sell the Property to any party other than Purchaser. Seller has not assigned any rents or income from the Property in any manner other than as disclosed by the financing documents set forth in this Agreement; (G) Foreign Person. Seller is not a foreign person and is a "United States person" as such term is defined in Section 7701(a)(30) of the Internal Revenue Code of 1954, as amended, and shall deliver to Purchaser prior to the closing date an affidavit evidencing such fact; i Page 13 - AGREEMENT FOR SALE AND PURCHASE (H) Sole Legal Owner. The parties signing this Agreement on behalf of Seller represent the sole legal owner or all legal owners of the Property; (I) Defaults. Seller is not in default under any contract, transaction, agreement, lease, encumbrance, or instrument pertaining to the Property and there are no contracts, transactions, agreements, leases or encumbrances which shall extend beyond the closing date which have not been submitted to Purchaser for Purchaser's review and approval; (J) Litigation. There is no litigation pending or threatened respecting the use, ownership or operation of the Property, except as disclosed in Exhibit "E" hereto; (K) No Hazardous Materials. Seller warrants, represents i and covenants that Seller, and to Seller's knowledge, Seller's predecessors in interest, and any person acting in conjunction with Seller or Seller's predecessors in interest, have not, during their (including Seller's) occupancy, use or ownership of the Property, improperly handled or stored, discharged or located upon the Property any "hazardous materials" or any "hazardous materials contamination" on the Property. The underground storage tank or tanks on the Property will be removed by Seller, in accordance with subparagraph 4(C) hereof. As used herein, the terms "hazardous materials" and "hazardous materials contamination" are defined as: (i) "Hazardous Materials" means (a) any "hazardous waste" as defined by the Resource Conservation and Page 14 - AGREEMENT FOR SALE AND PURCHASE Recovery Act of 1976 (42 U.S.C. Sec. 6901, et seq.), as amended from time to time, and regulations promulgated thereunder; (b) any "hazardous substance" as defined by the Comprehensive Environmental Response, Compensation and Liability Act of 1980 (42 U.S.C. Sec. 9601, et seq.), as amended from time to time, and regulations promulgated thereunder; (c) radon and material quantities of petroleum products; (d) any substance the presence of which on the Property is regulated by any federal, state or local law relating to the protection of the environ- ment or public health; and (e) any other substance which by law requires special handling in its collection, storage, treatment or disposal. (ii) "Hazardous Materials Contamination" means the contamination (whether presently existing or occurring after the date hereof but on or before the closing date) of the improvements, facilities, soil, ground water, surface water, air or other elements on or under the Property by hazardous materials, or the contamination (whether presently existing or occurring after the date hereof but on or before the closing date) of the buildings, facilities, soil, ground water, surface water, air or other elements on or under any other Property as a result of hazardous materials emanating from the Property. Page 15 - AGREEMENT FOR SALE AND PURCHASE i (L) Environmental Permits. Seller has obtained all necessary federal, state and local environmental permits necessary for its business and activity and use of the Property, Seller is in full compliance with the terms and conditions of any such environmental permits, and Seller is in compliance with all other applicable federal, state and local environmental statutory and regulatory requirements not incorporated in its permits; (M) Knowledge. Seller has no knowledge of any facts or circumstances that may give rise to any future civil, criminal or administrative proceedings against Seller relating to environmental matters; (N) Assignment. Seller's warranties and representations and its agreement of indemnity as set forth in this paragraph 8 are assignable by Purchaser and otherwise transferable in the event that Purchaser subsequently sells the Property; (O) Survival. Seller's warranties pursuant to paragraph 8 shall survive the closing, and delivery and recording of Seller's Statutory Warranty Deed; (P) Seller's Knowledge. "To Seller's knowledge" as used herein shall mean the actual and constructive knowledge of Property managers, officers and employees of Seller, who would reasonably be expected to have such knowledge and who are employees and officers of Seller with respect to the Property; (Q) Subsequent Information. If any information relevant to the representations and warranties of Seller under this Page 16 - AGREEMENT FOR SALE AND PURCHASE 1 Agreement shall come to Purchaser's attention before the closing date (whether through Seller or otherwise), then, for the purposes of Seller's liability under such representations and warranties, the effect shall be as if the representations and warranties were so modified in this Agreement; provided, however, that Purchaser's opportunity to make an investigation of the Property shall not limit the express representations and warranties of Seller made herein, unless specific knowledge comes to the attention of Purchaser through such investigation. 9. SELLER'S OBLIGATIONS PENDING CLOSING From the time of execution of this Agreement to closing, Seller shall: (A) Remedy prior to closing any and all violations of Federal, State and local laws, rules, regulations and codes relating to the Property which become known prior to closing; (B) Operate the Property and any business thereon until closing in a business-like manner in all respects, so as to preserve its value to the Purchaser; (C) Permit Purchaser and his representatives to have access to the Property at all reasonable times prior to closing, in order to facilitate Purchaser's tests and studies. 10. TIME TIME IS OF THE ESSENCE of this Agreement. Page 17 - AGREEMENT FOR SALE AND PURCHASE 11. PURCHASER'S RIGHT OF ACCESS Purchaser and Purchaser's agents may at any time during the term of this Agreement enter upon the Property for purposes of soil tests and any other studies reasonably required by Purchaser. 12. SELLER'S OCCUPANCY OF PREMISES AFTER CLOSING Seller shall be entitled to remain in the office and warehouse premises on the Property from the Closing date through June 30, 1991, conditioned on payment of monthly rental to Purchaser in the amount of $1,269, triple net, with Seller also responsible for utilities, insurance and taxes on the portion of the Property subject to the rental agreement. This rental agreement may be extended on a month-to-month basis beyond June 30, 1991. There- after, Purchaser shall provide Seller 60-days' notice of its intent to terminate the rental agreement, and Seller shall provide Purchaser with 30-days' written notice of its intent to terminate the rental agreement and vacate the premises. 13. NEGATION OF AGENCY AND PARTNERSHIP Seller's agreement to cooperate with Purchaser in connection with any provision of this Agreement shall not be construed as making either party an agent or partner of the other party. 14. FAILURE TO CLOSE (A) Seller's Remedies. In the event that this trans- action shall fail to close on account of Purchaser's fault, other than the failure of the preconditions set forth in paragraph 4 of this Agreement, the FIVE THOUSAND DOLLARS ($5,000.00) previously deposited or paid as earnest money Page 18 - AGREEMENT FOR SALE AND PURCHASE shall be forfeited by Purchaser and retained by Seller as liquidated damages. In addition, Seller shall be entitled to such remedies for breach of contract as may be available under applicable law, including without limitation, the remedy of specific performance. (B) Purchaser's Remedies. In the event that this transaction shall fail to close on account of Seller's fault or Seller's inability to close, the consideration deposited pursuant to paragraph 2 shall be returned to Purchaser. In addition, Purchaser shall be entitled to such remedies for breach of contract as may be available under applicable law, including without limitation, the remedy of specific perform- ance. Purchaser's remedies set forth herein are in addition to those remedies granted Purchaser by paragraph 6. 15. FULL AUTHORITY Each of the parties and signatories to this Agreement represents and warrants that each has the full right, power, legal capacity and authority to enter into and perform the parties' respective obligations hereunder and no approval or consents of any other person are necessary in connection herewith. 16. APPLICABLE LAW This Agreement shall, in all respects, be governed by the laws of the State in which the Property is located. 17. SEVERABILITY Nothing contained herein shall be construed so as to require the commission of any act contrary to law, and wherever there is Page 19 - AGREEMENT FOR SALE AND PURCHASE any conflict between any provisions contained herein and any present or future statute, law, ordinance or regulation contrary to which the parties have no legal right to contract, the latter shall prevail; but the provision of this Agreement which is affected shall be curtailed and limited only to the extent necessary to bring it within the requirements of the law. 18. MODIFICATION OR AMENDMENTS No amendment, change or modification of this Agreement shall be valid, unless in writing and signed by all the parties hereto. 19. ENTIRE AGREEMENT This Agreement constitutes the entire agreement between and among the parties, integrates all of the terms and conditions mentioned herein or incidental hereto, and supersedes all negotia- tions or previous agreements between the parties or their predeces- sors in interest with respect to all or any part of the subject matter hereof. 20. PREPARATION AND SCHEDULE OF EXHIBITS All exhibits hereto consisting of more than one page shall be numbered. All exhibits are to be attached hereto and are incor- porated by reference as if fully set forth in this Agreement. All schedules shall be updated at closing, where applicable. All exhibits shall be delivered thirty (30) days prior to closing, except where otherwise indicated. Page 20 - AGREEMENT FOR SALE AND PURCHASE EXHIBIT A. Legal Description, ALTA Survey (at Purchaser's option and expense) and Schedule of Exceptions (with true and correct copies) to Seller's title for the Real Property. A-1 Certified Uniform Commercial Code Search. B. Statutory Warranty Deed. C. Schedule of any claims against Seller's title. D. Schedule of any other contracts or agreements encumbering the Property. E. Statement and schedule of all litigation, pending or threat- ened, and any and all claims asserted against Seller, its agents and employees within the last twenty-four (24) months, pertaining to the Property, and Seller's statement of the existence of insurance policy coverage for any such litigation or claims. 21. WAIVER Failure of either party at any time to require performance of any provision of this Agreement shall not limit the party's right to enforce the provision, nor shall any waiver of any breach of any provision be a waiver of any succeeding breach of the provision or a waiver of the provision itself or any other provision. 22. CALCULATION OF TIME All periods of time referred to herein shall include Satur- days, Sundays and legal holidays in the State of Oregon, except that if the last day of any period falls on any Saturday, Sunday Page 21 - AGREEMENT FOR SALE AND PURCHASE or such a holiday, the period shall be extended to include the next day which is not a Saturday, Sunday or such a holiday. 23. COMPLIANCE WITH THE FOREIGN INVESTMENT IN REAL PROPERTY TAX ACT Seller and Purchaser shall deliver or cause to be delivered to Purchaser at the closing an affidavit executed by Seller and Purchaser under penalty of perjury, stating Seller's and Pur- chaser's taxpayer identification numbers and their respective warranties and representations that neither is a foreign person as set forth in IRC Sec. 1445. 24. STATUTORY DISCLAIMER THE PROPERTY DESCRIBED IN THIS INSTRUMENT MAY NOT BE WITHIN A FIRE PROTECTION DISTRICT PROTECTING STRUCTURES. THE PROPERTY IS SUBJECT TO LAND USE LAWS AND REGULATIONS WHICH, IN FARM OR FOREST ZONES, MAY NOT AUTHORIZE CONSTRUCTION OR SITING OF A RESIDENCE. BEFORE SIGNING OR ACCEPTING THIS INSTRUMENT, THE PERSON ACQUIRING FEE TITLE TO THE PROPERTY SHOULD CHECK WITH THE APPROPRIATE CITY OR COUNTY PLANNING DEPARTMENT TO VERIFY APPROVED USES AND EXISTENCE OF FIRE PROTECTION FOR STRUCTURES. 25. ASSIGNMENT Purchaser shall have the right to assign its right, title and interest under this Agreement to a related or subsidiary entity in which Purchaser holds an interest without the prior written consent of the Seller. Purchaser shall not have the right to assign its right, title and interest under this Agreement to an unrelated third party without the prior written consent of the Seller, which shall not be unreasonably withheld. Page 22 - AGREEMENT FOR SALE AND PURCHASE 26. SUCCESSORS AND ASSIGNS All of the terms and provisions contained herein shall inure to the benefit of and shall be binding upon the parties hereto and their respective heirs, legal representatives, successors and assigns. 27. GOOD FAITH, COOPERATION AND DUE DILIGENCE The parties hereto covenant, warrant and represent to each other good faith, complete cooperation, due diligence and honesty in fact in the performance of all obligations of the parties pursuant to this Agreement. All promises and covenants are mutual and dependent. 28. SURVIVAL OF WARRANTIES AND REPRESENTATIONS All representations, warranties, covenants and agreements of the parties contained in this Agreement, or in any instrument or other writing provided for herein, shall survive the closing. 29. ATTORNEY'S FEES In the event suit or action is instituted to interpret or enforce the terms of this Agreement, the prevailing party shall be entitled to recover from the other party such sums as the court may adjudge reasonable as attorney's fees at trial or on appeal of such suit or action, in addition to all other sums provided by law. 30. NOTICE Notice under this Agreement shall be in writing and shall be effective when delivered. If mailed, notice shall be deemed effective 48 hours after mailing as registered or certified mail, postage prepaid, directed to the other party at the address set forth below or such other address as the party may indicate by written notice to the other: Page 23 - AGREEMENT FOR SALE AND PURCHASE • r SELLER: PURCHASER: R. Dean and Dorothy Schmitz CITY OF TIGARD c/o Tigard Electric Attn: Patrick J. Reilly 8720 S.W. Burnham Street City Administrator Tigard, Oregon 97223 P.O. Box 23397 Tigard, Oregon 97223 WITH COPIES TO: WITH COPIES TO: Thomas J. Murphy, Esq. Kenneth M. Elliott, Esq. Furrer & Scott O'Donnell, Ramis, et al Attorneys at Law Attorneys at Law P. O. Box 23414 1727 NW Hoyt Tigard, OR 97223 Portland, OR 97209 31. MEMORANDUM FOR RECORDING The parties may, upon mutual agreement, execute a memorandum of this Agreement for recording with the recording officer of the county in which the Property is situate at the request of Purchaser. 32. PREPARATION OF AGREEMENT Seller acknowledges that this Agreement has been prepared for the Purchaser by O'Donnell, Ramis, Crew & Corrigan, Attorneys at Law, acting for the sole benefit and protection of the Purchaser. Seller acknowledges the right to have this Agreement and all matters related thereto, reviewed by independent counsel. 33. MUTUAL INDEMNITY AGAINST BROKERS COMMISSION. Both parties warrant to the other that neither has utilized a real estate broker and each will defend, indemnify and hold harmless the other from any claim, loss or liability made or imposed by any broker or other party claiming a commission or fee in connection with this transaction or arising out of that party's conduct. Page 24 - AGREEMENT FOR SALE AND PURCHASE • r . IN WITNESS WHEREOF, the parties have executed this Agreement as of the date and at the place first above written. SELLER: PURCHASER: R. DEAN SCHMITZ CITY OF TIGARD, OREGON, an Oregon municipal corporation gy • Y' . Dean Schmitz Pat ick J. illy C't Administrat r DOROTHY SC ITZ By: D rothy Schmitz STATE F~ o,~ ) ss. Coun y of Personally appeared R. DEAN SCHMITZ and acknowledged the fore- going instrument to be his voluntary act and deed. DATED January Q4 , 1991. (NOTARIAL SEAL) Notary Public for My Commission Expires: c~ 31c2 STATE OF ( C~ c, ) ss. County of 4~ : L ) Personally appeared DOROTHY SCHMITZ and acknowledged the fore- going instrument to be her voluntary act and deed. DATED January , 1991. (NOTARIAL SEAL) Notary Public for Qr~c My Commission Expires: Page 25 - AGREEMENT FOR SALE AND PURCHASE . . M STATE OF OREGON ) ss. County of Personally appeared PATRICK J. REILLY, who being first duly sworn, did say that he is the City Administrator of THE CITY OF TIGARD, OREGON, an Oregon municipal corporation, and that he executed the foregoing instrument on behalf of the corporation by authority of its Mayor and City Council as its free act and deed. DATED January 1991. (NOTARIAL SEAL) Notary Public for Oregon 61 My Commission Expires: kmdtigard -k&p-.agr Page 26 - AGREEMENT FOR SALE AND PURCHASE E~ttiIBi "C" (5ch~~c~ule ot_' .~r,~° r;1=zfTnS :~gair;c»t Sel~.pr~s tit1:=.] Sellers know of no loch c.l F n* aga iric.t_ Seller's title. R. DEAN SCHMITZ . Dean Schmitz Da t e : 1991. 4 DOROTHY S HM Z f 1 i I By - - _ D rothy hmitz L Date 1991. i i i I R f i 1 F- Fc 1 T- t-i 1_1 1 r i EXFi-Y teen (Seh~cI'Jl.e Of ari;~ ~ `t~~r r_,c.ntracts or agreements encuran^ring the Prol.-)ez-ty.l Sellers knew o.' no such contracts Or agreements encumbering the Property. R. DEAN SCHMITZ Dean Schr-1 g/ Date: - 440~~ 1991. DORUPHY S HM TZ , ti3'/ t- 0-4- o othy Sc mitz Date: O S- / 991. ve, 1 t 7 i >'1 a r S - j i i J~KtlBIT E" (Statement and Sc),.=dule of litigation, pending or threatened.] Sellers know of no such litigation, pending or threatened. R. DEAN SCHMITZ B . Dean Schmitz Date: - S 1991. DOPOTHY SCH ITZ BY ✓ - - D Toth, c mitt Da ✓ - o S~~/ 19 91 .