HomeMy WebLinkAbout200907010164 �f � , d
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After recording return to:
City of Bremerton, a Washington municipal
corporation ______. ___________�
345 6th St., 6th FI.
Bremerton, WA 98337 200907010164 'i
� �pWYERS TITLE INS CORP �
�,� Deed Rec Fee $ 44 �� page 1 of 3 I
i 07101/2009 O1 56 PM
� Walter Washington, Kitsap Co Auditor
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KITSRP COUNTY TRERSURER EXCISE 07l01l2009 �
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2009EX03420 ;
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Reference: 20355887- -101- -KAB �otal : $3921 .00 Clerk �s Initial _____________ �
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STATUTORY WARRANTY DEED _. .
THE GRANTOR(S) Patrick Lockhart and Cheryl A. Lockhart, husband and wife,
for and in consideration of Ten ($10.00) Dollars and other good and valuable consideration
in hand paid, conveys and warrants to City of Bremerton, a Washington municipal
corporation
the following described real estate, situated in the County of Kitsap, State of Washington:
See Exhibit A attached hereto and made a part hereof.
Subject to: Those items specifically set forth on Exhibit "A" attached hereto.
Abbreviated Legal: (Required if full legal not inserted above.) PORTION GOVT LOT 1, 32 24N
OlE
Tax Parcel Number(s): 322401-1-078-2004, 322401-1-077-2005, ,
Dated: 7une 27, 2009
SELLERS:
,
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Patrick Lockhart Cheryl A. Lockhart
State of Washin ton
SS:
County of
O this day of D� � , before me personally appeared
/� c L6cK ,t Lo ftKT to me known
to be the individual(s) de cr ed in an who executed th ithin and foregoing instrument, and
acknowledged that signed the same as free and voluntary act and
deed for the uses and p oses therein mentioned.
Given under my hand d official se day and ear last above written.
���a��uu�u,,,
� ,,•�`���� ANN e;Q��
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Notary Public in and for the State of ,; Q . . =
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Residing at - Y S 26 2 �� • Z:
My Appointment expires: 9 �/ % : h 0 :
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Statutory Warranty Deed LPB-10-05 (1/06)
LAWYERS TITLE INSURANCE CORPORATION
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Exhibit A
PARCEL I:
THAT PORTION OF GOVERNMENT LOT 1, SECTION 32, TOWNSHIP 24 NORTH, RANGE 1 EAST,
W.M., IN KITSAP COUNTY, WASHINGTON, DESCRIBED AS FOLLOWS:
BEGINNING AT A POINT WHICH IS NORTH 88°34'S0" WEST 519.25 FEET AND SOUTH 3°07'04"
WEST 521.23 FEET FROM THE NORTHEAST CORNER OF SAID GOVERNMENT LOT 1, SAID POINT
BEING ON THE SOUTH MARGIN OF THE NAVY YARD HIGHWAY;
THENCE SOUTH 3°07'04" WEST 103.99 FEET TO A POINT ON THE EASTERLY MARGIN OF SAID
GOVERNMENT LOT 1;
THENCE SOUTH 59°40' WEST 115.50 FEET;
THENCE SOUTH 77°00' WEST 163 FEET;
THENCE NORTH 60°20'04" WEST 82.23 FEET TO THE EAST MARGIN OF PORT ORCHARD-
BREMERTON HIGHWAY;
THENCE NORTH 29°19'45" EAST 91.50 FEET ALONG THE EAST MARGIN OF SAID HIGHWAY TO THE
SOUTH MARGIN OF NAVY YARD HIGHWAY;
THENCE NORTH 76°45'30" EAST 201 FEET ALONG THE SOUTH MARGIN OF SAID HIGHWAY;
THENCE NORTH 71°14' EAST 100.60 FEET TO THE POINT OF BEGINNING;
EXCEPT HIGHWAYS;
EXCEPT PORTION LYING EASTERLY OF STATE HIGHWAY NO. 21;
SITUATE IN THE COUNTY OF KITSAP, STATE OF WASHINGTON.
PARCEL II:
PORTION OF GOVERNMENT LOT 1, SECTION 32, TOWNSHIP 24 NORTH, RANGE 1 EAST, W.M.,
DESCRIBED AS FOLLOWS: .
BEGINNING AT THE INTERSECTION OF THE NORTHWESTERLY MARGIN OF STATE ROAD NO. 14
AND EASTERLY MARGIN OF ROAD BOND PRO]ECT NO. 8;
THENCE NORTH 51°41' EAST 123.91 FEET;
THENCE NORTH 60°20'04" WEST 47.12 FEET TO THE EASTERLY MARGIN OF BOND PROJECT NO. 8;
THENCE SOUTHERLY ALONG SAID EASTERLY MARGIN 114.87 FEET TO POINT OF BEGINNING;
SITUATE IN THE COUNTY OF KITSAP, STATE OF WASHINGTON.
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SUB7ECT TO:
1. RESERVATIONS CONTAINED IN DEED RECORDED IN VOLUME 41 OF DEEDS, PAGE 228.
2. EASEMENT AND THE TERMS AND CONDITIONS THEREOF:
GRANTEE: BREMERTON WATER & POWER COMPANY
PURPOSE: ELECTRIC POWER LINE
AREA AFFECTED: THE DESCRIPTION CONTAINED THEREIN IS NOT SUFFICIENT
TO DETERMINE ITS EXACT LOCATION WITHIN THE PROPERTY
HEREIN DESCRIBED
RECORDED: )ULY 28, 1917
RECORDING NO.: 87704
SAID EASEMENT ASSIGNED TO PUGET SOUND POWER & LIGHT COMPANY UNDER
RECORDING N0. 177852.
3. EASEMENT AND THE TERMS AND CONDITIONS THEREOF:
PURPOSE: PIPE LINE(S)
AREA AFFECTED: THE DESCRIPTION CONTAINED THEREIN IS NOT SUFFICIENT
TO DETERMINE ITS EXACT LOCATION WITHIN THE PROPERTY
HEREIN DESCRIBED
RECORDING NOS. 95516 AND 228319
4. NOTICE TO TITLE AND THE TERMS AND CONDITIONS THEREOF:
RECORDED: DECEMBER 26, 2007
RECORDING NO.: 200712260376
REGARDING: DANGEROUS BUILDING '
5. UNRECORDED IEASEHOLDS, IF ANY; RIGHTS OF VENDORS AND HOLDERS OF SECURITY
INTERESTS ON PERSONAL PROPERTY INSTALLED UPON THE LAND; AND RIGHTS OF
TENANTS TO REMOVE TRADE FIXTURES AT THE EXPIRATION OF THE TERM.
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T � •
FIRST AMENDMENT
TO REAL ESTATE PURCHASE AND SALE AGREEMENT
WITH EARNEST MONEY PROVISION
This First Amendment to Real Estate Purchase and Sale Agreement with Earnest Money
Provision is entered into between the CITY OF BREMERTON (Buyer) and PATRICK M.
LOCKHART and CHERYL A. LOCKHART (Sellers) and amends the Real Estate Purchase
and Sale Agreement as follows:
Exhibit A is hereby amended to include Tax Parcel #322401-1-077-2007 as
' originally intended by the parties. And Amended Exhibit A is attached hereto and
incorporated herein by this reference
All other terms of the Real Estate Purchase and Sale Agreement with Earnest Money Provision
shall remain in full force and effect.
IN WITNESS WHEREOF, the parties hereto have executed this Amendment on the date set
forth below.
BUYER: SELLER: �
THE CITY B PATRICK M. LOCKHART
By: -
f! rv t'�oZ�n�pc.-✓� , Mayor �
Dated: (G -� - ('Z� Dated: �'�30���
CHERYL A. LOCKHART
� C����i�('
Dated: �P,�O �D�
' APPROVED AS TO FORM:
B•
Roger . Lubovich, City Atto
R:\Legal\Legal�Files\Current Actrve T�lf\Lockhart Real Estate\1 st Amendment to REPSA.doc
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EXHIBIT A
' (AMENDED)
Parcel 1: . 322401-1-078-2004 '
THAT PORTION OF GOVERNMENT LOT 1, SECTION 32, TOWNSHIP 24 NORTH,
RANGE 1 EAST, W.M., IN KITSAP COUNTY, WASHINGTON, DESCRIBED AS
FOLLOWS: BEGINNING AT A POINT WHICH IS NORTH 88*34'S0" WEST 519.25 FEET
AND SOUTH 3*07'04" WEST 521.23 FEET FROM THE NORTHEAST CORNER OF SAID
GOVERNMENT LOT 1, SAID PO1NT BEING ON THE SOUTH MARGIN OF THE NAVY
YARD HIGHWAY; THENCE SOUTH 3*07'04" WEST 103.99 FEET TO A POINT ON THE
EASTERLY MARGIN OF SAID GOVERNMENT LOT l, THENCE SOUTH 59*40' WEST
115.50 FEET; THENCE SOUTH 77*00' WEST 163 FEET; THENCE NORTH 60*20'04"
WEST 82.23 FEET TO THE EAST MARGIN OF PORT ORCHARD-BREMERTON
HIGHWAY; THENCE NORTH 29* 19'45" EAST 91.50 FEET ALONG THE EAST MARGIN
OF SAID HIGHWAY TO THE SOUTH MARGIN OF NAVY YARD HIGHWAY; THENCE
NORTH 76*45'30" EAST 201 FEET ALONG THE SOUTH MARGIN OF SA
Parcel2: 322401-1-077-2005
PORTION OF GOVERNMENT LOT 1, SECTION 32, TOWNSHII' 24 NORTH, RANGE 1
EAST, W.M., DESCRIBED AS FOLLOWS: BEGINNING AT THE INTERSECTION OF THE
NORTHWESTERLY MARGIN OF STATE ROAD NO. 14 AND EASTERLY MARGIN OF
ROAD BOND PROJECT NO. 8; THENCE THE NORTH 51 *41' EAST 123.91 FEET;
THENCE NORTH 60*20'04" WEST 47.12 FEET TO THE EASTERLY MARGIN OF BOND
PROJECT NO. 8; THENCE SOUTHERLY ALONG SAID EASTERLY MARGIN 114.87
FEET TO POINT OF BEGINNING; SITUATE IN THE COUNTY OF KITSAP, STATE OF
WASHINGTON.
REAL ESTATE PURCHASE A1VD SALE AGREEME�1'T
WITH EARNEST MOIYEY PROVISION
This agreement controls the terms of the sale af real propexty.
(Piease read carefullv before si�nin�.)
This Agreement is entered between the CITY OF BREMERTOIY, a Washing�ton municipal
cor}�oratian {"Buyer"j, arid Patrick M. Lockhart and Chervl A. LockhaR, husband and wife
("Seller"), for the sale and purchase of real property as foilows:
1. PROPERTY. The proper�y, including all improve�nents� and appurtenances situa�ed
therec>n, which Buyer agrees to buy and Seller agrees to sell, is commoniy known tv be located at
3791 Sta#e Higk�way 3 West, Bremertvn, Washington (the "Propei�ty"), and which Property is legally
described in ��hibit A, atitached hereto and incarporated l�srein hy this reference. A map indicating
the location of the Property is also attached as �xhibit B, incorporated herein by this reference.
2. EARNEST MONEY. Received from Buyer, One Thausand and No/100 Dollars
($1,400.00} in the form of a City af Bremcrton Purchase Order, as ea�rnest money and part payment
on the purchase price for the Properiy.
3. PURCHASE P1t�CE. The total purchase price far the Property is Two Hundred
TwentX Thousa.nd anci RTa/100 Dollars ($220.400), including eannest money, payable on closing.
4 C4NTIIVGEAICIES. Th.is agreement is contiugent upon:
. (a) 1�eceptane� of its terms by the Bremerton City Coun�cil.
(b) Buyers review and approval of the title report on the praperty prior to
Closing. ,
(c) A Feasibility Study as follows:
(1) B�yer shall have the opportunity to conduct a feasibility study to
determine if, in Buyer's sole and absolut� discretion, th� Property is
feasible for investment and/or development by Buyer.
(2) Bt�yer's feasibiIity study may include (but is not Iimited ta} a Phase I
and/or Phase II environmental assessmenE, utilities availability a.nd
capacity, access avaitability, zoning, preiiminary architectural and
engineering studies, marketing feasibiIity.
(3) A Phase T environmental assessment generally will cansist of a
review of title of ownership and land use, review of geologic and
hydrotogic maps of the area, review of federal and state datab�.ses for
known hazardous water generators or contaminated sites and a site
visit. If the Phase I review reveals the potential of a contaminated
site, a Phas� II environmental assessnient may be conducted which
REAL �STATS PURCHAS� AND SALE AGR��iVfENT
Pa�e a o�'G
generally will consist of an-site sampling, including the digging or
boring of test holes for soil samples. 13y �ecuting this agreenaent,
Seller hereby authorizes ,73uyer a right o, f'erttt on to the proPerty for
the purpose of conducting this feasibility study ir�clucling a Phase I,
and if raecessary, a Plrase II enviror�mental assessment. Sellet wrll be
nottfied if a Phase rl environmenta! assessment is to be conducte�l
(4) Buyer agrees to conduct its feasibility study at its sole cost and
expense; and if Buyer does not remove the feasibility cvntingency on
or before the expiration af the feasibility period, then Buyer also
agrees, if requested by Seller, to del�ver to Seller capies of all
information and docurnentation abtaineci by Buyer in connection
with its feasibility study.
(5) For any on-site activity perfor�ned by Buyer during the feasibility
study, Buyer agrces to return the Property tv its orig,inaI state (i.e., filt
alI boring holes, etc.).
Should any of these contingencies not he met within i0 davs from the date ofmutua!
acceptance of this Agreement, then this Agreement shall terminate except neither Buyer �ox Seltex
shall have any further rights, duties ar obligations hereunder, except that the Earnest Maney h�ld in
escrow shall be immediately returned to Buyer.
5. C4NVEYANCE AND CONDITION 4F TITLE. The title ta the reai properky
shall be conveyed by Seller to Buyer at ciosing by Stacutory WarranCy Deed, free and clear of all
liens, encutnbrances or defects except those described in Paragraph 6 below.
6, TITI�E INSURANCE. At Closing, Seller shall cause Lawyers Title Insurance
Corporation, whose address and telephone number is 9619 Levin Road NV�', Silverdale, WA 98383; �
(3d0) G92-4S56, ta issue a standa�•d farm owner's policy of title insurance ta Buyer in an amount
equal to the total purchase price of the Property. The cost of this policy shaIl be paid from S�Ilec's
funds at Closing. For purposes of this Agreement, the following shall not be deemed encumbrances
or defects: rights reserved and federal patents or state deeds; building ar use restrictions consistent
wit1� cut�rezxt zoning, and utility and raad easements of record. If title cannot be made so insurable
prior to the Closing daze called for herein, ui�less, Buyer eIects to waive such defects or
encumbrances, this agreement shall terminate.
7. CLUSING COSTS AND PRO-RATIONS. The cost of escrow shall be shared
equally b�tween Buyer and Seller, except those fees which are expressly limited by �ederal
R�gulation. Seller shall pay for excise tax and revenue stamps. Taxes for the current year, rents,
interest, Associ ation, Condominium and/or Homeowner's fees, water and other utility eharges, if any,
sha1l be pro-rated as of date of closing unless otherwise agreed.
8. C�.OSING UF THE SALE. With the understanding that time is of the essence for
this agreement, this sale shall be closed by Julv l, 2049 which shall afso be the terminatioi� date of
REAL ESI'ATF PURCHASE AND SAI.� AGREEMENT
Page 2 0£ 6
this agreement unless said ctosing date is extei�det� in writing by m�tual a�•eement of the parties.
When notified, the Buyer and Seller will deposit, without delay, in escrow with Lawyers Title
Insurance Corporation, all insiruments and monies required to complete the transaction in
accordance with this agreement. Ciosing, for the purpose of this agreement, is defined as the date
that ali daeuments a.re executed and the sale proceeds are availa6le for disbursement to the Seller.
9. CASUALTY LOSS. If prior to closing, improvetnenCs on said premises shali be
destroyed or materially damaged by fire or other casualty, tl�is agreement, ak option of the Buyer,
shall become null and void.
10. POSSESSION. Buyer shall be entitled to passession on closing.
11. SELLER'S REPRESENTATIONS. Sell�r represents that:
(a} SelIer will maintain the property in present or better condition until time of
agreed possession,
{b} Seller has no knowledge or notice from any governmental agency of a�ny
violation of laws relating to tl�e subject property except:
- oNE
(c) the property is not encumbered by anyleases.
12. �ELLER'S ENVIRONMENTAL REPRESENTATIUNS. Seller represents that
to the b�st of his/her knowledge that he/she is not aware of existence of, or has caused or allvwed to
be caused, any environment condition (including, without limitafion, a spill, discharge or
contamination) that existeti as of and/o�• prior to ihe closing date or any act af omission occurring
prior to the closing dafe, the result of which may require re�nedial action pursuant to any federal,
state or local law or may be the basis for the assertion of any third party claims, including claims of
governmental entities except: NaN�
This provision shall stuvive the closing and be in additioii to Seller's abligation for
breach of a representation or warranty as may be set forth herein.
13. SELLE�t'S INDEM�IITIES: Seller.agrecs to indemnify and hold harmless the
Buyer, against and in respect of, any and alI damages, claims, losses, liabitities, judgments, demands,
fees, obligations, assessments, and expenses and costs, including, witliout limitation, reasonable
legal, accounting, consulting, engineering and other expenses which may be imposed upon or
incurred by Buyer, or asserted a�ainst Buyer, by any other party or pa�ties (including, wiihout
lirnitation, a governmental entity), arising out of or in connection with any environmentai eonditiou
existing as of and/or prior to the clasing date, including the exposure of any person #o aziy such
environmental coiidiCion, regardless of whether such environrriei�tal candition or exposure resulted
frann activifies of S�ller or Se�lcr's predecessors in interesl.
This ind�nnity shall survive the closing and be in addition to Seller's obligation for
breach of a representation or warranty as may be set forth herein.
REAL FSTATE PURCHASE AND SALE AGREBMF.NT
Pagc 3 of b
14. DEFAULT AI�iD ATTORNEY'S FEES.
{a) Buyer's Default. I:f Buyer defaults hereunder, Seller`s sole remody shall be
. limited to damages against Buyer in the liquidate�l amount of the earnest money previously paid the
Buyer. Buyer and Seller intend that said amount constitutes liquzdated damages so as to avoid other
cosis and expenses to either party in connection with potential litigation an account of Buyers'
default. Buyer a�td Seller believe said amount io be a fair estimate of acl.ual damages.
(b) Seller's Defaui�. If Seller defaults hereunder, Buyer shall have all the rights
and rennedies available at law or in equity.
(c) Attoraey's Fees and Costs, In the event of litigation to enforce any of the
terms or provisions herein, each party shall pay all its own costs and attoms�s fees.
15. NOTICE TO SELLER This fonn eontains provisions for an agreement for the
purchase and sale of real estatc. Buyer makes no warranty or representation of any ki�zd that this
form, or any of its provisions, is intended to meet the factual ancf legal requirements af a particular
iransaction, or rhat it accurateiy reflects lhat laws of the State af Washington at the time you enter the
agreenient. This agreement has signi�cant 1ega1 and �inancial consequences. By signing this
agreement, Seller acknowIedges that Seller has or has had the opportunityto consult with an attomey
regarding Sellers rights and obligations in this agreement.
lb. BROKERS FEES/COMMISSIONS. Seller agr�es tc� indemnify, defend and hold
harnlless Buyer with respect to any claim by any person or entity claiming through Seller to be
entitled to a commission with respect to ihe transactian eontemplated by this agreement.
17. NON-MERG�R. The terms, cond�tions, and provisians ofthis Agreement shail not
be deemed merged into the deed, and shal! survive the Closing and continue in full force and effect.
18. NOTICES. All notices required or pennitted to be given hereund�er sha�l be in
writing and shall be sent U.S certified mail return receipl requested, or by facsimile transrnission
addressed as set forth beiow:
(a} All notices to be given to Buyer shall be addressed as faIlows:
1Vlayar
Ciiy o�'�3rernerton
345 6th Street, Suite 60t3
Bremertan, Washington 9$337-1873
{b) A1F notices to be given to Seller shall be addressed as follows:
Gary Anderson
P.O. Box b35
Port Orchard, WA 9$36G `
R�AL ES'I'ATE PURCHAS� AND SAC,� AGR�EM�NT
Page 4 af b
Either par�y hereto may, by written notice to the other, designate such other address
for the giving of notices as being necessary. All notices shall be deemed given on the day such
notice is personally served, or on the date of the facsimile transmission, or on the third day following
the day such notice is ma.iled in accordance with this paragraph.
19. ENTIRE AGREENiENT. This agreement, including all incorporated exl�ibits,
�onstitutes the full understanding between seller and buyer. There have been no verUal or other
agrecments that rnadify this agreennent.
20, BINDING EFFECT AND SURVIVAL. This Agreement shall be binding upon
parties bereto and their respective heirs, successors and assigns; and the terms, conditions and
provisions af this Agreemet�t shall survive the closing of this transaction.
21. DATE OF MUTUAL ACCLPTANCE. For the purposes of fhis Agreement, the
date of znutual acceptance of this Agreement shalf be the last date on which the parties to this
Agreement have executed this Agreement as indicated belaw.
22. EXPIRATION UF OFFER Seller shall l�ave only until 5:04 p.m. on June 8, 2009,
to accept the purchase and sale agreeinent as written, by delivering a signed copy thereof lo the
Buyer or the Buyer's agent. If Seller does not so deliver a signed cc�py within said period, this
agreement sl�all #apse and all riglit of the parties hereunder shall te�inate.
IN WZTI�TESS VJHEREOF, the parties hereto have executed this Agreement on the date set
forth below.
BUYER: SELLER:
TT�iE CITY BREM ON PATRICI� M. LOCKHART
By:, ��
\ J
Ca fc l �� w( G�� , Mayor
Dated: ��- � - Q � Dated: `� — � — �
CHERYL A. LOCKHART
�ei�
Dated: 1° � �� � �
REAL ESTA'T� PURCI-IASE AND SALE AGRBEMENT
Page S of 6
APPROVED AS T� FORM:
By:
�oger A. Lubovich, City Attonxey . -
R:1T,egallLegallFileslCurrent Active FileslLockl�art Real EstatelRESPA.doc
R�AL �STATE PURCHASE AND SAx.� AGREEMENI'
� Pag� 6 of 6 . � .
EXHIBIT A �
Kitsap Counly Account No. 322401-1-07&2404
Tax Property Description
32241E
T�TAT PORTION OF GOVERNMENT LOT 1, SECTION 32, TOWMS�iTP 24 NORTH,
RANGE 1 EAST, W.M., IN KITSAP COUNTY, WASHINGTQN, DESCRTBED AS
FOLLOWS: BEGINNING AT A POINT WHICH IS 1VORTH 88*34'S0" WFST 519.25 FEET
AND SOUTH 3*07'04" WEST 521.23 FEET FR4M THE NORTHEAST CORNE�t OF SAID
GOVERNTVIENT LOT 1, SAID P4INT BE1NG ON THE SOUTH MARGIN OF THE NAVY
YA,RD HIGHWAY; THENCE SOUTH 3�`07'44" WEST 143.99 FEET TO A POINT ON THE
EASTERLY MARGIN OF SAID GOVERNMENT L(7T 1, THENCE SOUTH 59*40' WEST
115.50 FEET; THENCE SOUTH 77*Ot}' WEST 163 FEET; THENCE NORTH b0*24'04"
� WEST $2.23 FEET TO THE EAST MARGIN OF PORT ORCHARD-BREMERTON
HIGHWAY; THENCE NORTH 29'� 19'45" EAST 9I.54 FEET ALONG THE EAST NIARGIN
OF SATD HIGHWAY TO THE SOUTH MARGIN OF NAVY YARD HIGHWAY; THENCE
N4RTH 76*`45'30" EAST 201 FEET AL4NG THE SOUTH MARGiN OF SA
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� � i�► L,�wyers Title 9619 Levin Road NW
� � Silverdale, WA 98383
Phone: 360 692-4556
i�asuRANCE CdRPORATION Fax: 360-698-7509
July 24, 2009
City of Bremerton, a Washington municipal corporation
�=�, �.
345 6 St., 6 Floor r `� y" + �`�� ���� ��. ��
Bremerton, WA 98337 � �= W--� ��}-� �:-�, � ► �.-,.�
JUL 2 '� 2009
��s,� �.�! O�t aiGl 9t�si S
�sf�,���o�����`� �eriC�
YOUR REF:
OUR NO.: 20355887
Attached is your ALTA 2006 Owners Policy policy of title insurance and original recorded
Statutory Warranty Deed. Please retain it for future reference with your other closing
papers. �
Transnation Title Insurance Company has merged into Lawyers Title Insurance Corporation.
As a result, effective September 1, 2008 all title polices will be issued under and honored by
Lawyers Title Insurance Corporation.
Michael Mjelde
, .
' OWNER'S POLICY OF TITLE INSURANCE
issued by Lawyers Title Insurance Corporation Policy/File No .: 20355887
� � rs Title
� INSURANCE CORPORATION
Any notice of claim and any other notice or statement in writing required to be given to the Company under this Policy must be given
to the Company at the address shown in Section 18 of the Conditions.
COVERED RISKS
SUBJECT TO THE EXCLUSIONS FROM COVERAGE, THE EXCEPTIONS FROM COVERAGE CONTAINED IN SCHEDULE B, AND THE
CONDITIONS, LAWYERS TITLE INSURANCE CORPORATION, a Nebraska corporation (the "Company") insures, as of Date of Policy and, to
the extent stated in Covered Risks 9 and 10, after Date of Policy, against loss or damage, not exceeding the Amount of Insurance, sustained or
incurred by the Insured by reason of:
1. Title being vested other than as stated in Schedule A.
2. Any defect in or lien or encumbrance on the Title. This Covered Risk includes but is not limited to insurance against loss from
(a) A defect in the Title caused by
(i) forgery, fraud, undue influence, duress, incompetency, incapacity, or impersonation;
(ii) failure of any person or Entity to have authorized a transfer or conveyance;
(iii) a document affecting Title not properly created, executed, witnessed, sealed, acknowledged, notarized, or delivered;
(iv) failure to pertorm those acts necessary to create a document by electronic means authorized by law;
(v) a document executed under a falsified, expired, or otherwise invalid power of attorney;
(vi) a document not properly filed, recorded, or indexed in the Public Records including failure to perform those acts by
electronic means authorized by law; or
(vii) a defective judicial or administrative proceeding.
(b) The lien of real estate taxes or assessments imposed on the Title by a governmental authority due or payable, but unpaid.
(c) Any encroachment, encumbrance, violation, variation, or adverse circumstance affecting the Title that would be disclosed by an
accurate and complete land survey of the Land. The term "encroachment" includes encroachments of existing improvements
located on the Land onto adjoining land, and encroachments onto the Land of existing improvements located on adjoining land.
3. Unmarketable Title.
4. No right of access to and from the Land.
5. The violation or enforcement of any law, ordinance, permit, or governmental regulation (including those relating to building and zoning)
restricting, regulating, prohibiting, or relating to
(a) the occupancy, use, or enjoyment of the Land;
(b) the character, dimensions, or location of any improvement erected on the Land;
(c) the subdivision of land; or
(d) environmental protection
if a notice, describing any part of the Land, is recorded in the Public Records setting forth the violation or intention to enforce, but only
to the extent of the violation or enforcement referred to in that notice.
6. An enforcement action based on the exercise of a governmental police power not covered by Covered Risk 5 if a notice of the enforcement
action, describing any part of the Land, is recorded in the Public Records, but only to the extent of the enforcement referred to in that
notice.
7. The exercise of the rights of eminent domain if a notice of the exercise, describing any part of the Land, is recorded in the Public Records.
8. Any taking by a governmental body that has occurred and is binding on the rights of a purchaser for value without Knowledge.
9. Title being vested other than as stated in Schedule A or being defective '
(a) as a result of the avoidance in whole or in part, or from a court order providing an alternative remedy, of a transfer of all or any
part of the title to or any interest in the Land occurring prior to the transaction vesting Title as shown in Schedule A because that
prior transfer constituted a fraudulent or preferential transfer under federal bankruptcy, state insolvency, or similar creditors'
rights laws; or
(b) because the instrument of transfer vesting Title as shown in Schedule A constitutes a preferential transfer under federal
bankruptcy, state insolvency, or similar creditors' rights laws by reason of the failure of its recording in the Public Records
(i) to be timely, or
(ii) to impart notice of its existence to a purchaser for value or to a judgment or lien creditor.
10, Any defect in or lien or encumbrance on the Title or other matter included in Covered Risks 1 through 9 that has been created or attached
or has been filed or recorded in the Public Records subsequent to Date of Policy and prior to the recording of the deed or other instrument of
transfer in the Public Records that vests Title as shown in Schedule A.
The Company will also pay the costs, attorneys' fees, and expenses incurred in defense of any matter insured against by this Policy, but only to
the extent provided in the Conditions.
ALTA 2006 Owner's Policy Jacket Valid Only If Schedules A and B are Attached
Form 61190-126
, , EXCLUSIONS FROM COVERAGE Policy/File No.: 20355887
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 that arise by reason of:
1. (a) Any law, ordinance, permit, or governmental regulation (including those relating to building and zoning) restricting, regulating,
prohibiting, or relating to
(i) the occupancy, use, or enjoyment of the Land;
(ii) the character, dimensions, or location of any improvement erected on the Land;
(iii) the subdivision of land; or
(iv) environmental protection;
or the effect of any violation of these laws, ordinances, or governmental regulations. This Exclusion 1(a) does not modify or limit
the coverage provided under Covered Risk 5.
(b) Any governmental police power. This Exclusion 1(b) does not modify or limit the coverage provided under Covered Risk 6.
2. Rights of eminent domain. This Exclusion does not modify or limit the coverage provided under Covered Risk 7 or 8.
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 (however, this does not modify or limit the coverage provided under Covered Risk 9
and 10; or
(e) resulting in loss or damage that would not have been sustained if the Insured Claimant had paid value for the Title.
4. Any claim, by reason of the operation of federal bankruptcy, state insolvency, or similar creditors' rights laws, that the transaction vesting
the Title as shown in Schedule A, is
(a) a fraudulent conveyance or fraudulent transfer; or
(b) a preferential transfer for any reason not stated in Covered Risk 9 of this policy.
5, Any lien on the Title for real estate taxes or assessments imposed by governmental authority and created or attaching between Date of
Policy and the date of recording of the deed or other instrument of transfer in the Public Records that vests Title as shown in Schedule A
CONDITIONS
1. DEFINITION OF TERMS (g) "Land": The land described in Schedule A, and affixed
The following terms when used in this policy mean: improvements that by law constitute real property. The term
(a) "Amount of Insurance": The amount stated in Schedule "Land" does not include any property beyond the lines of the area
A, as may be increased or decreased by endorsement to this described in Schedule A, nor any right, title, interest, estate, or
policy, increased by Section 8(b), or decreased by Sections 11 and easement in abutting streets, roads, avenues, alleys, lanes, ways,
12 of these Conditions. or waterways, but this does not modify or limit the extent that a
(b) "Date of Policy": The date designated as "Date of Policy" right of access to and irom the Land is insured by this policy.
in Schedule A (h) "Mortgage": Mortgage, deed of trust, trust deed, or other
(c) "Entity": A corporation, partnership, trust, limited liability security instrument, including one evidenced by electronic means
company, or other similar legal entity. authorized by law.
(d) "Insured": The Insured named in Schedule A. (i) "Public Records": Records established under state
(i) The term "Insured" also includes statutes at Date of Policy for the purpose of imparting constructive
(A) successors to the Title of the Insured by notice of matters relating to real property to purchasers for value
operation of law as distinguished from purchase, including heirs, and without Knowledge. With respect to Covered Risk 5(d),
devisees, survivors, personal representatives, or next of kin; "Public Records" shall also include environmental protection liens
(B) successors to an Insured by dissolution, filed in the records of the clerk of the United States District Court
merger, consolidation, distribution, or reorganization; for the district where the Land is located.
(C) successors to an Insured by its conversion to (j) "Title": The estate or interest described in Schedule A
another kind of Entiry; (k) "Unmarketable Title": Title affected by an alleged or
(D) a grantee of an Insured under a deed delivered apparent matter that would permit a prospective purchaser or
without payment of actual valuable consideration conveying the lessee of the Title or lender on the Title to be released from the
Title obligation to purchase, lease, or lend if there is a contractual
(1) if the stock, shares, memberships, or other condition requiring the delivery of marketable title
equity interests of the grantee are wholly-owned by the named 2. CONTINUATION OF INSURANCE
Insured, The coverage of this policy shall continue in force as of Date of
(2) if the grantee wholly owns the named Policy in favor of an Insured, but only so long as the Insured
Insured, retains an estate or interest in the Land, or holds an obligation
(3) if the grantee is wholly-owned by an secured by a purchase money Mortgage given by a purchaser
affiliated Entity of the named Insured, provided the affiliated Entity from the Insured, or only so long as the Insured shall have liability
and the named Insured are both wholly-owned by the same person by reason of warranties in any transfer or conveyance of the Title.
or Entity, or This policy shall not continue in force in favor of any purchaser
(4) if the grantee is a trustee or beneficiary of from the Insured of either (i) an estate or interest in the Land, or (ii)
a trust created by a written instrument established by the Insured an obligation secured by a purchase money Mortgage given to the
named in Schedule A for estate planning purposes. Insured.
(i) With regard to (A), (B), (C), and (D) reserving, 3. NOTICE OF CLAIM TO BE GIVEN BY INSURED
however, all rights and defenses as to any successor that the CLAIMANT
Company would have had against any predecessor Insured. The Insured shall notify the Company promptly in writing (i) in case
(e) "Insured ClaimanY': An Insured claiming loss or damage. of any litigation as set forth in Section 5(a) of these Conditions, (ii)
(� "Knowledge" or "Known": Actual knowledge, not in case Knowledge shall come to an Insured hereunder of any
constructive knowledge or notice that may be imputed to an claim of title or interest that is adverse to the Title, as insured, and
Insured by reason of the Public Records or any other records that that might cause loss or damage for which the Company may be
impart constructive notice of matters affecting the Title liable by virtue of this policy, or (iii) if the Title, as insured, is
rejected as Unmarketable Title. If the Company is prejudiced by
ALTA 2006 Owner's Policy Jacket
Form 61190-126
# i"� Lav��yers Tit1�
�� INSURANCE CORPORATION
Policy/File No: 20355887
POLICY OF TITLE INSURANCE
Issued by
Lawyers Title Insurance Corporation
SCHEDULE A
File No.: 20355887
Address Reference: 3791 State Highway 3 West, Bremerton, WA 98312
Amount of Insurance: $220,000.00 Premium: $780.00
Date of Policy: 7uly i, 2009 at 1:56 pm
1. Name of Insured:
City of Bremerton, a Washington municipal corporation
2. The estate or interest in the land described herein and which is covered by this policy is:
a fee simple estate
3. Title is vested in:
City of Bremerton, a Washington municipal corporation
4. The land referred to in this policy is described as follows:
In the Exhibit "A" attached hereto and made a part hereof.
ALTA 2006 Owner's Policy
Page 1
Policy/File No, : 20355887
EXHIBIT "A"
PARCEL I:
THAT PORTION OF GOVERNMENT LOT 1, SECTION 32, TOWNSHIP 24 NORTH, RANGE 1
EAST, W.M., IN KITSAP COUNTY, WASHINGTON, DESCRIBED AS FOLLOWS:
BEGINNING AT A POINT WHICH IS NORTH 88°34'S0" WEST 519.25 FEET AND SOUTH
3°07'04" WEST 521.23 FEET FROM THE NORTHEAST CORNER OF SAID GOVERNMENT LOT
1, SAID POINT BEING ON THE SOUTH MARGIN OF THE NAVY YARD HIGHWAY;
THENCE SOUTH 3°07'04" WEST 103.99 FEET TO A POINT ON THE EASTERLY MARGIN OF
SAID GOVERNMENT LOT 1;
THENCE SOUTH 59°40' WEST 115.50 FEET;
THENCE SOUTH 77°00' WEST 163 FEET;
THENCE NORTH 60°20'04" WEST 82.23 FEET TO THE EAST MARGIN OF PORT ORCHARD-
BREMERTON HIGHWAY;
THENCE NORTH 29°19'45" EAST 91.50 FEET ALONG THE EAST MARGIN OF SAID HIGHWAY
TO THE SOUTH MARGIN OF NAVY YARD HIGHWAY;
THENCE NORTH 76°45'30" EAST 201 FEET ALONG THE SOUTH MARGIN OF SAID HIGHWAY;
THENCE NORTH 71°14' EAST 100.60 FEET TO THE POINT OF BEGINNING;
EXCEPT HIGHWAYS;
EXCEPT PORTION LYING EASTERLY OF STATE HIGHWAY N0. 21;
SITUATE IN THE COUNTY OF KITSAP, STATE OF WASHINGTON.
PARCEL II:
PORTION OF GOVERNMENT LOT 1, SECTION 32, TOWNSHIP 24 NORTH, RANGE 1 EAST,
W.M., DESCRIBED AS FOLLOWS:
BEGINNING AT THE INTERSECTION OF THE NORTHWESTERLY MARGIN OF STATE ROAD NO.
14 AND EASTERLY MARGIN OF ROAD BOND PROJECT NO. 8;
THENCE NORTH 51°41' EAST 123.91 FEET;
THENCE NORTH 60°20'04" WEST 47.12 FEET TO THE EASTERLY MARGIN OF BOND PROJECT
NO. 8;
THENCE SOUTHERLY ALONG SAID EASTERLY MARGIN 114.87 FEET TO POINT OF
BEGINNING;
SITUATE IN THE COUNTY OF KITSAP, STATE OF WASHINGTON.
ALTA 2006 Owner's Policy
Page 2
SCHEDULE B
Policy/File No.: 20355887
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 now payable or 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 the land or which may be asserted by persons in
possession, or claiming to be in possession, thereof.
3. Easements, liens or encumbrances, or claims thereof, which are not shown by the public
records.
4. Any encroachment, encumbrance, violation, variation, or adverse circumstance affecting the
Title that would be disclosed by an accurate and complete land survey of the Land, and that is
not shown by the Public Records.
5. Any lien, or right to a lien, for labor, material, services or equipment, or for contributions to
employee benefit plans, or liens under Workmans' Compensation Acts, not disclosed by the
public records.
6. (a) Unpatented mining claims; (b) reservations or exceptions in patents or in Acts authorizing
the issuance thereof; (c) Indian treaty or aboriginal rights, including, but not limited to,
easements or equitable servitudes; or, (d) water rights, claims or title to water, whether or not
the matters excepted under (a), (b), (c) or (d) are shown by the public records.
7. Right of use, control or regulation by the United States of America in the exercise of powers
over navigation; any prohibition or limitation on the use, occupancy or improvement of the
land resulting from the rights of the public or riparian owners to use any waters which may
cover the land or to use any portion of the land which is now or may formerly have been
covered by water.
8. Any service, installation, connection, maintenance or construction charges for sewer, water,
electricity, or garbage collection or disposal, or other utilities unless disclosed as an existing
lien by the public records.
SPECIAL EXCEPTIONS:
1. GENERAL PROPERTY TAXES AND SERVICE CHARGES, AS FOLLOWS, TOGETHER WITH
INTEREST, PENALTY AND STATUTORY FORECLOSURE COSTS, IF ANY, AFfER DELINQUENCY:
(iST HALF DELINQUENT ON MAY 1; 2ND HALF DELINQUENT ON NOVEMBER 1)
TAX ACCOUNT NO.: 322401-1-078-2004
YEAR BILLED PAID BALANCE
2009 $1,101.00 $ 550.50 $ 550.50
THE CURRENT LEVY CODE IS 8170. AS TO PARCEL I
ALTA 2006 Owners Policy
Page 3
, SCHEDULE B
' (continued)
2. GENERAL PROPERTY TAXES AND SERVICE CHARGES, AS FOLLOWS, TOGETHER WITH
INTEREST, PENALTY AND STATUTORY FORECLOSURE COSTS, IF ANY, AFTER DELINQUENCY:
(iST HALF DELINQUENT ON MAY 1; 2ND HALF DELINQUENT ON NOVEMBER 1)
TAX ACCOUNT NO.: 322401-1-077-2005
YEAR BILLED PAID BALANCE
2008 $ 81.82 $ 40.91 $ 40.91
THE CURRENT LEVY CODE IS 8170. AS TO PARCEL II
3. RESERVATIONS CONTAINED IN DEED RECORDED IN VOLUME 41 OF DEEDS, PAGE 228.
4. EASEMENT AND THE TERMS AND CONDITIONS THEREOF:
GRANTEE: BREMERTON WATER & POWER COMPANY
PURPOSE: ELECTRIC POWER LINE
AREA AFFECTED: THE DESCRIPTION CONTAINED THEREIN IS NOT SUFFICIENT TO
DETERMINE ITS EXACT LOCATION WITHIN THE PROPERTY HEREIN
DESCRIBED
RECORDED: JULY 28, 1917
RECORDING NO.: 87704
SAID EASEMENT ASSIGNED TO PUGET SOUND POWER & LIGHT COMPANY UNDER
RECORDING NO. 177852. .
5. EASEMENT AND THE TERMS AND CONDITIONS THEREOF:
PURPOSE: PIPE LINE(S)
AREA AFFECTED: THE DESCRIPTION CONTAINED THEREIN IS NOT SUFFICIENT TO
DETERMINE ITS EXACT LOCATION WITHIN THE PROPERTY HEREIN
DESCRIBED
RECORDING NOS. 95516 AND 228319
6. NOTICE TO TITLE AND THE TERMS AND CONDITIONS THEREOF:
RECORDED: DECEMBER 26, 2007
RECORDING NO.: 200712260376
REGARDING: DANGEROUS BUILDING
7. UNRECORDED LEASEHOLDS, IF ANY; RIGHTS OF VENDORS AND HOLDERS OF SECURITY
INTERESTS ON PERSONAL PROPERTY INSTALLED UPON THE LAND; AND RIGHTS OF TENANTS
TO REMOVE TRADE FIXTURES AT THE EXPIRATION OF THE TERM.
Page 4
Order No.: 20355887
EfFective Date: 5/1/2008
Fidelity National Financial, Inc.
Privacy Statement
Fidelity National Financial, Inc. and its subsidiaries ("FNF") respect the privacy and security of your non-
public personal information ("Personal Information") and protecting your Personal Information is one of
our top priorities. This Privacy Statement explains FNF's privacy practices, including how we use the
Personal Information we receive from you and from other specified sources, and to whom it may be
disclosed. FNF follows the privacy practices described in this Privacy Statement and, depending on the
business performed, FNF companies may share information as described herein.
Personal Information Collected
We may collect Personal Information about you from the following sources:
• Information we receive from you on applications or other forms, such as your name, address, social
security number, tax identification number, asset information, and income information;
• Information we receive from you through our Internet websites, such as your name, address, email
address, Internet Protocol address, the website links you used to get to our websites, and your
activity while using or reviewing our websites;
• Information about your transactions with or services performed by us, our affiliates, or others, such
as information concerning your policy, premiums, payment history, information about your home or
other real property, information from lenders and other third parties involved in such transaction,
account balances, and credit card information; and
• Information we receive from consumer or other reporting agencies and publicly recorded
documents.
Disclosure of Personal Information
We may provide your Personal Information (excluding information we receive from consumer or other
credit reporting agencies) to various individuals and companies, as permitted by law, without obtaining
your prior authorization. Such laws do not allow consumers to restrict these disclosures. Disclosures
may include, without limitation, the following:
• To insurance agents, brokers, representatives, support organizations, or others to provide you with
services you have requested, and to enable us to detect or prevent criminal activity, fraud, material
misrepresentation, or nondisclosure in connection with an insurance transaction;
• To third-party contractors or service providers for the purpose of determining your eligibility for an
insurance benefit or payment and/or providing you with services you have requested;
• To an insurance regulatory authority, or a law enforcement or other governmental authority, in a
civil action, in connection with a subpoena or a governmental investigation;
• To companies that perform marketing services on our behalf or to other financial institutions with
which we have joint marketing agreements and/or
• To lenders, lien holders, judgment creditors, or other parties claiming an encumbrance or an interest
in title whose claim or interest must be determined, settled, paid or released prior to a title or
escrow closing.
We may also disclose your Personal Information to others when we believe, in good faith, that such
disclosure is reasonably necessary to comply with the law or to protect the safety of our customers,
employees, or property and/or to comply with a judicial proceeding, court order or legal process.
Fidelity National Financial, Inc. - Privacy Statement - Page 1 of 2
Order No.: 20355887
Effective Date: 5/1/2008
Disclosure to Affiliated Companies - We are permitted by law to share your name, address and facts
about your transaction with other FNF companies, such as insurance companies, agents, and other real
_ estate service providers to provide you with services you have requested, for marketing or product
development research, or to market products or services to you. We do not, however, disclose
information we collect from consumer or credit reporting agencies with our affiliates or others without
your consent, in conformity with applicable law, unless such disclosure is otherwise permitted by law.
Disclosure to Nonaffiliated Third Parties - We do not disclose Personal Information about our customers
or former customers to nonaffiliated third parties, except as outlined herein or as otherwise permitted
by law.
Confidentiality and Security of Personal Information
We restrict access to Personal Information about you to those employees who need to know that
information to provide products or services to you. We maintain physical, electronic, and procedural
safeguards that comply with federal regulations to guard Personal Information.
Access to Personal Information/
Requests for Correction, Amendment, or Deletion of Personal Information
As required by applicable law, we will afford you the right to access your Personal Information, under
certain circumstances to find out to whom your Personal Information has been disclosed, and request
correction or deletion of your Personal Information. However, FNF's current policy is to maintain
customers' Personal Information for no less than your state's required record retention reauirements for
the purpose of handling future coverage claims.
For your protection, all reauests made under this section must be in writing and must include your
notarized siQnature to establish your identit� Where permitted by law, we may charge a reasonable fee
to cover the costs incurred in responding to such requests. Please send requests to:
Chief Privacy Officer
Fidelity Nationa) Financial, Inc.
601 Riverside Avenue
Jacksonville, FL 32204
Changes to this Privacy Statement
This Privacy Statement may be amended from time to time consistent with applicable privacy laws.
When we amend this Privacy Statement, we will post a notice of such changes on our website. The
effective date of this Privacy Statement, as stated above, indicates the last time this Privacy Statement
was revised or materially changed. '
Fidelity National Financial, Inc. - Privacy Statement - Page 2 of 2
. , Policy/File No.: 20355887
the failure of the Insured Claimant to provide prompt notice, the examine, inspect, and copy all of these records in the custody or
, Company's liability to the Insured Claimant under the policy shall control of a third party that reasonably pertain to the loss or
be reduced to the extent of the prejudice. damage. All information designated as confidential by the Insured
4. PROOF OF LOSS Claimant provided to the Company pursuant to this Section shall
In the event the Company is unable to determine the amount of not be disclosed to others unless, in the reasonable judgment of
loss or damage, the Company may, at its option, require as a the Company, it is necessary in the administration of the claim.
condition of payment that the Insured Claimant furnish a signed Failure of the Insured Claimant to submit for examination under
proof of loss. The proof of loss must describe the defect, lien, oath, produce any reasonably requested information, or grant
encumbrance, or other matter insured against by this policy that permission to secure reasonably necessary information from third
constitutes the basis of lossor damage and shall state, to the parties as required in this subsection, unless prohibited by law or
extent possible, the basis of calculating the amount of the loss or governmental regulation, shall terminate any liability of the
damage. Company under this policy as to that claim.
5. DEFENSE AND PROSECUTION OF ACTIONS 7. OPTIONS TO PAY OR OTHERWISE SETTLE CLAIMS;
(a) Upon written request by the Insured, and subject to the TERMINATION OF LIABILITY
options contained in Section 7 of these Conditions, the Company, In case of a claim under this policy, the Company shall have the
at its own cost and without unreasonable delay, shall provide for following additional options:
the defense of an Insured in litigation in which any third party (a) To Pay or Tender Payment of the Amount of Insurance.
asserts a claim covered by this policy adverse to the Insured. This To pay or tender payment of the Amount of Insurance under this
obligation is limited to only those stated causes of action alleging policy together with any costs, attorneys' fees, and expenses
matters insured against by this policy. The Company shall have incurred by the Insured Claimant that were authorized by the
the right to select counsel of its choice (subject to the right of the Company up to the time of payment or tender of payment and that
Insured to object for reasonable cause) to represent the Insured as the Company is obligated to pay.
to those stated causes of action. It shall not be liable for and will Upon the exercise by the Company of this option, all liability and
not pay the fees of any other counsel. The Company will not pay obligations of the Company to the Insured under this policy, other
any fees, costs, or expenses incurred by the Insured in the than to make the payment required in this subsection, shall
defense of those causes of action that allege matters not insured terminate, including any liability or obligation to defend, prosecute,
against by this policy. or continue any litigation.
(b) The Company shall have the right, in addition to the (b) To Pay or Otherwise Settle With Parties Other Than the
options contained in Section 7 of these Conditions, at its own cost, Insured or With the Insured Claimant.
to institute and prosecute any action or proceeding or to do any (i) To pay or otherwise settle with other parties for or in
other act that in its opinion may be necessary or desirable to the name of an Insured Claimant any claim insured against under
establish the Title, as insured, or to prevent or reduce loss or this policy. In addition, the Company will pay any costs, attorneys'
damage to the Insured. The Company may take any appropriate fees, and expenses incurred by the Insured Claimant that were
action under the terms of this policy, whether or not it shall be authorized by the Company up to the time of payment and that the
liable to the Insured. The exercise of these rights shall not be an Company is obligated to pay; or
admission of liability or waiver of any provision of this policy. If the (ii) To pay or otherwise settle with the Insured Claimant
Company exercises its rights under this subsection, it must do so the loss or damage provided for under this policy, together with
diligently. any costs, attorneys' fees, and expenses incurred by the Insured
Whenever the Company brings an action or asserts a defense as Claimant that were authorized by the Company up to the time of
required or permitted by this policy, the Company may pursue the payment and that the Company is obligated to pay.
litigation to a final determination by a court of competent Upon the exercise by the Company of either of the options
jurisdiction, and it expressly reserves the right, in its sole provided for in subsections (b)(i) or (ii), the Company's obligations
discretion, to appeal any adverse judgment or order to the Insured under this policy for the claimed loss or damage,
6. DUTY OF INSURED CLAIMANT TO COOPERATE other than the payments required to be made, shall terminate,
(a) In all cases where this policy permits or requires the including any liability or obligation to defend, prosecute, or
Company to prosecute or provide for the defense of any action or continue any litigation.
proceeding and any appeals, the Insured shall secure to the 8. DETERMINATION AND EXTENT OF LIABILITY
Company the right to so prosecute or provide defense in the action This policy is a contract of indemnity against actual monetary loss
or proceeding, including the right to use, at its option, the name of or damage sustained or incurred by the Insured Claimant who has
the Insured for this purpose. Whenever requested by the suffered loss or damage by reason of matters insured against by
Company, the Insured, at the Company's expense, shall give the this policy.
Company all reasonable aid (i) in securing evidence, obtaining (a) The extent of liability of the Company for loss or damage
witnesses, prosecuting or defending the action or proceeding, or under this policy shall not exceed the lesser of
effecting settlement, and (ii) in any other lawful act that in the (i) the Amount of Insurance; or
opinion of the Company may be necessary or desirable to (ii) the difference between the value of the Title as
establish the Title or any other matter as insured. If the Company insured and the value of the Title subject to the risk insured against
is prejudiced by the failure of the Insured to furnish the required by this policy.
cooperation, the Company's obligations to the Insured under the (b) If the Company pursues its rights under Section 5 of
policy shall terminate, including any liability or obligation to defend, these Conditions and is unsuccessful in establishing the Title, as
prosecute, or continue any litigation, with regard to the matter or insured,
matters requiring such cooperation. (i) the Amount of Insurance shall be increased by 10%,
(b) The Company may reasonably require the Insured and
Claimant to submit to examination under oath by any authorized (ii) the Insured Claimant shall have the right to have the
representative of the Company and to produce for examination, loss or damage determined either as of the date the claim was
inspection, and copying, at such reasonable times and places as made by the Insured Claimant or as of the date it is settled and
may be designated by the authorized representative of the paid.
Company, all records, in whatever medium maintained, including (c) In addition to the extent of liability under (a) and (b), the
books, ledgers, checks, memoranda, correspondence, reports, e- Company will also pay those costs, attorneys' fees, and expenses
mails, disks, tapes, and videos whether bearing a date before or incurred in accordance with Sections 5 and 7 of these Conditions
after Date of Policy, that reasonably pertain to the loss or damage. 9. LIMITATION OF LIABILITY
Further, if requested by any authorized representative of the (a) If the Company establishes the Title, or removes the
Company, the Insured Claimant shall grant its permission, in alleged defect, lien, or encumbrance, or cures the lack of a right of
writing, for any authorized representative of the Company to access to or from the Land, or cures the claim of Unmarketable
ALTA 2006 Owner's Policy Jacket
Form B1190-126
, , Policy/File No.: 20355887
Title, all as insured, in a reasonably diligent manner by any persons. Arbitrable matters may include, but are not limited to,
,, methc�d, including litigation and the completion of any appeals, it any controversy or claim between the Company and the Insured
shall have fully performed its obligations with respect to that matter arising out of or relating to this policy, any service in connection
and shall not be liable for any loss or damage caused to the with its issuance or the breach of a policy provision, or to any other
Insured. controversy or claim arising out of the transaction giving rise to this
(b) In the event of any litigation, including litigation by the policy. All arbitrable matters when the Amount of Insurance is
Company or with the Company's consent, the Company shall have $2,000,000 or less shall be arbitrated at the option of either the
no liabiliry for loss or damage until there has been a final Company or the Insured. All arbitrable matters when the Amount
determination by a court of competent jurisdiction, and disposition of Insurance is in excess of $2,000„000 shall be arbitrated only
of all appeals, adverse to the Title, as insured. when agreed to by both the Company and the insured. Arbitration
(c) The Company shall not be liable for loss or damage to pursuant to this policy and under the Rules shall be binding upon
the Insured for liability voluntarily assumed by the Insured in the parties. Judgment upon the award rendered by the
settling any claim or suit without the prior written consent of the Arbitrator(s) may be entered in any court of competent jurisdiction.
Company. 15. LIABILITY LIMITED TO THIS POLICY; POLICY ENTIRE
10. REDUCTION OF INSURANCE; REDUCTION OR CONTRACT
TERMINATION OF LIABILITY (a) This policy together with all endorsements, if any,
All payments under this policy, except payments made for costs, attached to it by the Company is the entire policy and contract
attorneys' fees, and expenses, shall reduce the Amount of between the Insured and the Company. In interpreting any
Insurance by the amount of the payment. provision of this policy, this policy shall be construed as a whole.
11. LIABILITY NONCUMULATIVE (b) Any claim of loss or damage that arises out of the status
The Amount of Insurance shall be reduced by any amount the of the Title or by any action asserting such claim shall be restricted
Company pays under any policy insuring a Mortgage to which to this policy.
exception is taken in Schedule B or to which the Insured has (c) Any amendment of or endorsement to this policy must be
agreed, assumed, or taken subject, or which is executed by an in writing and authenticated by an authorized person, or expressly
Insured after Date of Policy and which is a charge or lien on the incorporated by Schedule A of this policy.
Title, and the amount so paid shall be deemed a payment to the (d) Each endorsement to this policy issued at any time is
Insured underthis policy. made a part of this policy and is subject to all of its terms and_
12. PAYMENT OF LOSS provisions. Except as the endorsement expressly states, it does
When liability and the extent of loss or damage have been not (i) modify any of the terms and provisions of the policy, (ii)
definitely fixed in accordance with these Conditions, the payment modify any prior endorsement, (iii) extend the Date of Policy or (iv)
shall be made within 30 days. increase the Amount of Insurance.
13. RIGHTS OF RECOVERY UPON PAYMENT OR 16. SEVERABILITY
SETTLEMENT In the event any provision of this policy, in whole or in part, is held
(a) Whenever the Company shall have settled and paid a invalid or unenforceable under applicable law, the policy shall be
claim under this policy, it shall be subrogated and entitled to the deemed not to include that provision or such part held to be
rights of the Insured Claimant in the Title and all other rights and invalid, but all other provisions shall remain in full force and effect.
remedies in respect to the claim that the Insured Claimant has 17. CHOICE OF LAW; FORUM
against any person or property, to the extent of the amount of any (a) Choice of Law: The Insured acknowledges the Company
loss, costs, attorneys' fees, and expenses paid by the Company. If has unde►written the risks covered by this policy and determined
requested by the Company, the Insured Claimant shall execute the premium charged therefor in reliance upon the law affecting
documents to evidence the transfer to the Company of these rights interests in real property and applicable to the interpretation, rights,
and remedies. The Insured Claimant shall permit the Company to remedies, or enforcement of policies of title insurance of the
sue, compromise, or settle in the name of the Insured Claimant jurisdiction where the Land is located.
and to use the name of the Insured Claimant in any transaction or Therefore, the court or an arbitrator shall apply the law of the
litigation involving these rights and remedies. jurisdiction where the Land is located to determine the validity of
If a payment on account of a claim does not fully cover the loss of claims against the Title that are adverse to the Insured and to
the Insured Claimant, the Company shall defer the exercise of its interpret and enforce the terms of this policy. In neither case shall
right to recover until after the Insured Claimant shall have the court or arbitrator apply its conflicts of law principles to
recovered its loss. determine the applicable law.
(b) The Company's right of subrogation includes the rights of (b) Choice of Forum: Any litigation or other proceeding
the Insured to indemnities, guaranties, other policies of insurance, brought by the Insured against the Company must be filed only in
or bonds, notwithstanding any terrns or conditions contained in a state or federal court within the United States of America or its
those instruments that address subrogation rights. territories having appropriate jurisdiction.
74. ARBITRATION 18. NOTICES, WHERE SET
Either the company or the Insured may demand that the claim or Any notice of claim and any other notice or statement in writing
controversy shall be submitted to arbitration pursuant to the Title required to be given to the Company under this Policy must be
Insurance Arbitration Rules of the American Land Title Association given to the Company at Consumer Affairs Department, P.O. Box
("Rules"). Except as provided in the Rules, there shall be no 45023, Jacksonville, FL 32232-5023.
joinder or consolidation with claims or controversies of other
ALTA 2006 Owner's Policy )acket
Form 61190-126
, . Policy/File No.: 20355887
THANK YOU.
Title insurance provides for the protection of your real estate investment. We suggest you keep this policy in a safe place where it can
be readily available for future reference.
If you have questions about title insurance or the coverage provided by this policy, contact the office that issued this policy or you may
call or write:
Lawyers Title Insurance Corporation
Consumer Affairs
P.O. Box 45023
Jacksonville, FL 32232-5023
We thank you for choosing to do business with Lawyers Title Insurance Corporation, and look forward to meeting your future title
insurance needs.
� i� rs Title
� INSURANC£ CORPORATION
ALTA 2006 Owner's Policy Jacket
Form B1190-126