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HomeMy WebLinkAbout2004-075 Title Report - ZallerApril 2, 2004 Lawyers Title Insurance Corporation 1400 Ashland Street Ashland, Oregon 97520 Tel: (541) 488-2240 Fax: 488-1786 City of Ashland Attn: Mike Fernell 20 E. Main Street, 2nd Floor Ashland, OR. 97520 Re: Escrow No. 4090400431 ~- .... ~'~'~' ~ ..... /' . ~,~, '~-'~. ~ Enclosed are the items necessary for your signatures prior to closing the above referenced transaction. Please execute and return as marked: Escrow Instructions, including an ESTIMATED closing statement. Please sign as indicated, retaining a copy for your records. Preliminary Title Report. You may retain the copy for your records. Copy of Warranty Deed for your approval as to terms, form and conditions. Please execute and return. Please forward a CASHIER'S CHECK in the amount of $63,792.17, representing our ESTIMATED balance due to close. The check should be made payable to LAWYERS TITLE INSURANCE CORPORATION and any excess will be refunded to you at close of escrow. If you have any questions, please do not hesitate to contact the undersigned. We will be glad to assist you. ~.r~ Escrc Enclc ~ r~ LandAme ica Lawyers Title 1400 Ashland Street Ashland, Oregon 97520 Tel: (541) 488-2240 Fax: 488-1786 BUYER/BORROWER ESTIMATED ESCROW STATEMENT Buyer (s) /Borrower (s) : City of Ashland Seller(s): John R. Zaller Barbara J. Geddes Estimated Close of Escrow: 04/01/04 Escrow Officer: Patricia Gray (L) - Denotes Lender Deducted Fee Property Address: Open Space on Oak Street Ashland Oregon 97520 Escrow No.: 40g0400431 Debits Credits CREDITS DEBITS Purchase Price ............................... County taxes paid in advance from 04/01/04 to 07/01/04 ............... 91 days at 1.880959 per day Recording of Deed ............................ Settlement or closing fee .................... Refundable Deposit to Escrow Portion of Survey costs ...................... 60,000.00 171.17 31.00 140.00 50.00 3,400.00 Sub-totals 63,792.17 0.00 Balance due this company 63,792.17 TOTAL 63,792.17 63,792.17 You are instructed to make deductions, adjustments and disbursements as estimated above. Estimated amounts may be adjusted depending on date of close of escrow. If funds are insufficient to pay our closing costs, we agree to deposit sufficient funds for payment thereof. Received , 20 LAWYERS TITLE INSURANCE CORPORATION BY: Patricia Gray ESCROW INSTRUCTIONS LAWYERS TITLE INSURANCE CORPORATION DATE: 3/31/04 ESCROW OFFICER: Patricia Gray ESCROW NO. 40g0400431 You are instructed to credit seller and debit buyer the approximate amount of $3400.00 for a portion of the survey fees. In the event the credit amount shall be different than $3400.00, the buyer and seller shall give you written instructions as to the actual amount. Lawyers Title ESCROW INSTRUCTIONS ESCROW NO. 40g0400431 pg DATE: March 30, 2004 OFFICER: Patricia Gray I/WE will hand you, or cause to be handed you sufficient funds to pay costs and prorations chargeable to buyer, as set forth on the Estimated Settlement Statement, and all BUYER documents necessary to comply with these instructions, WHICH YOU ARE AUTHORIZED TO USE WHEN YOU CAN ISSUE OR CAUSE TO BE ISSUED Your Standard Owners Policy(les) of Title Insurance in the amount(s) of $ 60,000.00 and $ insuring the undersigned buyer (and lender, if any) that title to the premises described in preliminary title report dated 03/17/04 under Lawyers Title Insurance Corporation (LTIC) Order No. 40g0400431 (or other title company's, if so indicated on settlement statement) IS VESTED IN; City of Ashland, a municipal corporation SUBJECT ONLY TO: 1. Usual printed exceptions, stipulations and conditions in above form(s) of Policy. 2. Taxes for the 2003-2004 fiscal year paid in full 3. Covenants, conditions, restrictions, easements, rights and rights of way of record, if any, shown as items(s) 7,8,9,10,14,16,18,19,20,22 of title report above, a copy of which the undersigned has RECEIVED AND APPROVED. Ail parties acknowledge that escrow agent has not received a copy of the purchase agreement between buyer and seller. You are to show the consideration to be $60,000.00. Further, you are instructed to prorate the estimated prepaid taxes and to charge seller for the title insurance premium, one half of the escrow fee and the reconveyance/release fee and you are to charge buyer one half of the escrow fee and the recording fee. It is understood by the parties hereto that real property taxes regarding the subject property are not segregated. Buyer and Seller instruct escrow holder to use the sum of $686.55 per year for the purpose of tax proration through this escrow. Escrow holder assumes no responsibility for the accuracy of said figure in relationship to the actual taxes to be assessed. Recording of Trust Deed: Seller and Buyer understand that Buyer's lender may require the recording of its trust deed (or other security instrument) before delivery of loan funds to escrow. Seller and Buyer agree to and consent to this requirement. Seller and Buyer further authorize and instruct Escrow Agent to record Seller's deed to Buyer concurrently with the trust deed (or other security agreement) to Buyer's lender. In the unlikely event that loan funds are not delivered to escrow, Buyer agrees to execute and deliver immediately to Escrow Agent a deed conveying the Property back to Seller, along with sufficient funds to record the deed, upon Lawyers Title's request, and LTIC shall record said deed on behalf of Seller upon receipt. Fire Insurance: If required by lender, buyer(s) will provide fire insurance acceptable to lender. liability and/or responsiblity with respect to the fire insurance. Escrow Agent shall have no Continuing Obligations: Seller and Buyer acknowledge that they have continuing obligations to cooperate with Escrow Agent in good faith to enable Escrow Agent to perform its duties under these instructions. Principals' obligations in this regard shall survive the closing of the transaction which is the subject of this escrow and shall include, without limitation, the obligation to return to Escrow Agent for proper disposition any funds, document or other property which for any reason is released improperly or mistakenly to Seller or Buyer, Adjustments: Escrow Agent may make adjustments to Seller and Buyer's preliminary settlement statement upon written or e-mail instruction, facsimile transmission or telephonic authorization (with subsequent written or fax confirmation) from Seller or Buyer. Mortgage Broker Fees: The lender's funds may include a fee paid by the lender directly to a mortgage broker. The lender may refer to these funds as a yield spread premium, a servicing release premium, or generally as a premium or fee paid to the mortgage broker. When paid outside of closing, this fee may appear on the settlement statement as "P.O.C." If funded into this escrow, the fee may appear by description but with no figure in an amount column or, depending on thelender's instructions, with amounts in a column for credits and charges. Seller's Initials.'''~ '~- Buyer's Initials: Purpose of this escrow. The purpose of this escrow is to closea sale and purchase of Property. The sale and purchase is the subject of a written agreement between the Seller and Buyer, a copy of which Seller and Buyer, directly or through an agent or lawyer, has provided to Escrow Agent. Escrow Agent's duty: Escrow Agent's duty to Principals is to act in accordance with the Principal's instructions to Escrow Agent. By executing these instructions, Seller and Buyer acknowledge the following: Escrow Agent and its escrow staff are not authorized to offer and have not offered any advice to Seller or Buyer regarding the merits of this transaction or the nature of the instruments utilized in this transaction. Funds: Disclosure Regarding Escrow Bank Account: MONIES HANDED TO THIS COMPANY IN THIS ESCROW, along with monies received in all escrows with this company, deposited in non-interest bearing accounts. In consideration of these accounts, the bank provides benefits (i.e. escrow accounting services) which are passed on to our customers by not making additional charges for these services and in the calculation of our escrow fees. According to our 2000 figures, these benefits averaged $51.37 per individual closing escrow. Payment and Discharge of Liens; Authorization for Release of Trust Deed: Seller and Buyer authorize and instruct Escrow Agent upon closing to pay all liens being released or discharged through this escrow in accordance with the payoff statements or instructions received by Escrow Agent from the lien holders. Seller and Buyer authorize and instruct Escrow Agent to record or file the release or file the release or discharge documents upon receipt after closing, if not in Escrow Agent's possession at closing. With respect to any trust deed loan satisfied through this escrow, Oregon law authorizes an alternative procedure for discharge, if Escrow Agent does not receive the appropriate reconveyance documentation from the lender in due course after payment. The alternative procedure, established by Oregon Revised Statutes (ORS) 86.720, permits Escrow Agent to process a "Release of Trust Deed." Seller authorizes Escrow Agent, at its discretion, to prepare, execute and record, in accordance with ORS 86.720, a Release of Trust Deed for any trust deed paid in full through this escrow. Escrow Agent may apply any trust deed reconveyance fees, including trustee and recording fees, collected in this escrow as a reasonable fee for processing any corresponding Release of Trust Deed. Seller waives the statutory requirement for receipt of any Notice of Intention to Record Release. For any Release of Trust Deed processed by Escrow Agent, Seller assigns to Escrow Agent Seller's right of recovery under ORS 86.720(1) against the trust deed beneficiary. Seller's authorization to process a Release of Trust Deed does not prelude Seller from delivering to Escrow Agent, after the required passage of time, a separate written request under ORS 86.720 for release of any trust deed paid in full through this escrow and not reconveyed within 60 days of satisfaction. Small Overages: In the event that, after Escrow Agent performs the services authorized by the Buyer and Seller's instructions, funds of $5.00 or less remain in this escrow, Buyer and Seller authorize and instruct Escrow Agent to disburse these remaining funds to Escrow Agent as a charge for a supplemental post closing service and waive receipt of a settlement statement showing this charge. Seller's assurance regarding Property Liens. Seller represents and warrants to Buyer and to Lawyers Title that Seller has disclosed to Lawyers Title any and all liens not shown on the Preliminary Title Report but personally known by Seller to affect the Property, including without limitation any and all construction liens. Contingencies of Sale and Purchase Agreement; Personal Property. Seller and Buyer agree and declare, by executing the documents necessary to close this transaction, that all contingencies of the sale and purchase agreement between Seller and Buyer have been met or will be met to their satisfaction, or, if not met, will be handled by and between Seller and Buyer outside of this escrow, and you are instructed to proceed with the closing of this escrow. Seller and Buyer agree and declare that Escrow Agent will have no responsibility or liability for any such contingency which has not been met. All matters pertaining to personal property, if any, whether included or excluded in this sale, will be handled outside of escrow unless expressly provided for otherwise in these instructions. Parties assurance regarding Outstanding Bills. Buyer and Seller herein acknowledge that all bills, including but not limited to, inspections and/or repair work have been paid and that there are no outstanding bills with regards to this transaction which need to be paid, unless expressly provided for otherwise in these instructions. The parties hereby release escrow agent of any responsibility and/or liability in connection with bills which may be submitted after the close of this transaction. Prorations. MAKE ADJUSTMENTS/PRORATIONS BASED ON 365 DAY YEAR AS MARKED AS OF CLOSE OF ESCROW (x) TAXES, except taxes on personal property not conveyed through this escrow, based on current fiscal year taxes. HOWEVER, in the event the escrow closes after July 1 and before current taxes are publicly posted, you are instructed to prorate the taxes based on the immediately preceding year's taxes unless the parties to the escrow furnish you with an amount mutually agreed to as a basis for the tax proratibn. MOBILE HOME TAXES for current fiscal year INTEREST on existing encumbrances based on statement furnished to you RENTS/SECURITY DEPOSITS based on information provided by the parties - BASED ON A 30 DAY MONTH RESERVE ACCOUNT to be reimbursed by buyer HOMEOWNERS ASSOCIATION DUES INITIALS "") '-~" ' ESCROW INSTRUCTIONS CONTINUED GENERAL INSTRUCTIONS: You are authorized to deliver, prepare, obtain and record the necessary instruments to carry out the terms and conditions of this escrow. Signatures of the parties hereto on any documents or agreements prepared by you as escrow holder, or deposited in escrow from an outside source, shall constitute the complete approval of the terms, conditions and form of said documents. In the event the conditions of this Escrow have not been met by April 1, 2004 you are to complete the same at the earliest date thereafter, unless notice of cancellation IN WRITING is given by either party. Should any controversy, INCLUDING REQUEST FOR CANCELLATION, arise between the parties hereto, or with an' third person, you may refuse to take any further action hereunder and await settlement of any such controversy joint instructions of the parties or by appropriate legal proceedings. If you become a party to a civil action by reason of this escrow, you shall be entitled to recover your attorney fees and costs or other expense that you in good faith may incur. It is understood by Seller and Buyer that any unpaid charges for water service, sewer service, waste collection, electricity, natural gas or other utilities and any inventory for fuel, if any, will be adjusted between Seller and Buyer outside of this escrow, except insofar as specifically provided for on the settlement statements. You are not required to ascertain compliance with any "consumer credit protection", truth in lending, or similar laws, and shall have no liability for loss or damage arising out of noncompliance with such laws. You shall have no liability or responsibility with regards to the compliance with any requirement of ORS 537.788 to 537.793 (related to well information) or similar laws. These instructions may be executed in counterparts, each of which so executed shall, irrespective of the date of its execution and delivery be deemed an original, and said counterparts together shall constitute one and the same instrument. If requested, you may furnish copies of these instructions, supplements or amendments thereto, notices of cancellation, closing statements and loan documents to each parties respective real estate agent, and buyer's lender, if any named in this escrow. CLOSE OF ESCROW SHALL mean the date that documents, as required, are filed for record. The principals to this escrow are hereby notified that the funds deposited herein are insured only to the limit provided by Federal Deposit Insurance Corporation. All disbursements may be made by check of Lawyers Title Insurance Corporation, direct deposit or wire transfer. NOTICE IN ACCORDANCE WITH OAR 863-50-010: IT IS UNDERSTOOD BY THE PARTIES SIGNING THE ABOVE OR ATTACHED ESCROW INSTRUCTIONS, THAT SUCH INSTRUCTIONS CONSTITUTE THE WHOLE AGREEMENT BETWEEN THIS FIRM AS ESCROW AGENT AND YOU AS A PRINCIPAL TO THE ESCROW TRANSACTION. THESE INSTRUCTIONS MAY NOT INCLUDE ALL THE TERMS OF THE AGREEMENT WHICH IS THE SUBJECT OF THIS ESCROW. READ THESE INSTRUCTIONS CAREFULLY AND DO NOT SIGN THEM UNLESS THEY ARE ACCEPTABLE TO YOU. By signature(s) hereunder, deposit of funds and/or documents as called for herein is made, and you are authorized to charge my account with buyer's usual charges, prorations, the demand for documents, AND COSTS AS SET OU] ON ESTIMATED SETTLEI~/1ENT STATEMENT. C~t~ ~f Asfli'-J'and FORWARDING ADDRESS: 20 E Main St 2nd Floor Ashland OR 97520 The undersigned SELLERS hereby approve the above instructions in their entirety, specifically including incorporation Of the GENERAL INSTRUCTIONS, and will hand you necessary documentsj to convey said property in accordance with the above instructions, WHICH YOU MAY USE when you hold for my/our account the total sales pr LESS an, title/Jcl7 amounts AS SET FORTH ABOVE. I agree to pay seller's usual charges, encumbrances necessary to place rgdition called for, prorations, AND COSTS AS SET OUT ON ESTIMATED SETTLEMENT STATEMENT. (S): Ri Zaller ' d' J Barbara J, Ge s FORWARDING ADDRESS: 664 Haveford Ay Pacific Palisades CA 90272 40gO400431pg After recording return to: Lawyers Title Insurance Corporation 1555 E. McAndrews Road, Suite 100 MedfordOR 97504 Until a change is requested, all tax statements shall be sent to Grantee at the following address: 20 E Main St 2nd Floor Ashland OR 97520 STATUTORY WARRANTY DEED John R. Zaller and Barbara J. Geddes , Grantor, conveys and warrantsto City of Ashland, a municipal corporation , Grantee, the following described realproperty free ofencumbrances except as specifically setforth herein: Parcel No. Three (3) of Partition Plat recorded March 16, 2004, as Partition Plat No. P-11-2004 of "Record of Partition Plats" in Jackson County, Oregon, and filed as Survey No. 18168 in the Office of the County Surveyor. This propertyisfree of encumbrances, EXCEPT: Covenants, conditions, restrictions, the subject property. reservations, rights and rights of way now of record on The true consideration for this conveyance is $ 60,000.00. 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 AND TO DETERMINE ANY LIMITS ON LAWSUITS AGAINST FARMING OR FOREST PRACTICES AS DEFINED IN ORS 30.930. Datedz~/.m,,c.~this day of , 200_~ STATE OF OREGON, COUNTY OF JackS011 The foregoing instrument was acknowledged before me this John R. Zaller and Barbara J. Geddes Njyt c'~o mPmU ib~ is~ofn° r ( O r e gc~ p i r e~~ ~ , ,! , day of ~ by MEMORANDUM OF UNDERSTANDING REGARDING DIVISION AND SALE OF REAL PROPERTY DATE:March 17, 2004 PARTIES: City of Ashland, Oregon, including the Ashland Park and Recreation Commission ("City"), and John Ro Zaller and Barbara J. Geddes ("Sellers") RECITALS: A. City desires to purchase a portion of the property located in Ashland, Jackson County, Oregon, described as 391E04CA, 'Tax Lot #2709 as further described on the attached Exhibit A and depicted as Parcel 3 on the partition plat map attached as Exhibit B. (This property is further referred to in this agreement as "the purchase property.") The purchase price for the purchase property is $60,000, together with a conditional ingress/egress recreational easement across an adjoining portion of the property described as 391E04CA, Tax Lot #2709 as more particularly set forth across Parcel 2 partition plat P-11-2004 attached as Exhibit B (This property is further referred to in this agreement as the "easement property") and closing is scheduled no later than March 26, 2004. B. Sellers are amenable to sell the purchase property to the City and to grant City an easement across the easement property. AGREEMENT City and Sellers agree: 1. City will: 1.1. Purchase price. Pay to the Seller at closing the sum of $60,000.00, less any earnest money paid, for the purchase of the purchase property. City will also pay one-half of the closing costs. 1.2. MLP/survey requirements. Process a minor land partition ("MLP"), at its expense, to divide the purchase property in approximately that location indicated on Exhibit B. City shall provide for the survey of the MLP and develop adequate descriptions for the purchase property and the easement described in this agreement. 1.3. Open Space Dedication. Dedicate the property conveyed to City as open space park lands as defined in the City of Ashland Charter. 2. Sellers will: PAGE 1-MEMORANDUM OF UNDERSTANDING G:\LEGAL\MIKE\REAL PROPERTY~Z_ALLER PURCHASE & EASEMENT AGREEMENT.WPD 2.1 Trail easement. Grant to the City a conditional twenty foot trail easement along the creek on the west side of the easement property. The parties understand that this easement will not be utilized for trail purposes until the later of: 1) Ten years; or 2) the City's acquisition of all of the property or easements necessary to complete a continuous trail between Hersey Street and Nevada Street in the form attached as Exhibit D. Sellers will allow vehicular access within the trail easement for the purposes of trail construction, maintenance and repair or where necessary or desirable to control, reduce or prevent disease, fire, fire hazard, or to restore natural habitat areas or to promote native vegetation. Except in cases of emergency or except for trail construction, City will give at least 24 hours notice prior to any vehicular access within the trail easement. 2.2 Purchase property. Convey to the City good and marketable title to the purchase property. 3. Closing date/Alternate plan. 3.1. Closing date. The exchange of documents necessary to effect the property transfers and easements described in this agreement shall be closed within 60 days from the date of this agreement or as soon thereafter as the surveys have been completed and all approvals from the City of Ashland for the minor land partition have been received. 3.2. Alternate plan. If the minor land partition fails to be approved, or is delayed for any significant length of time because of an appeal or otherwise, the parties agree to work together in good faith to effect the intent of this agreement. 4. Preliminary Title Report. Within 10 days after full execution of this Agreement, City shall order at City's expense, a preliminary title report showing the condition of title to the property, together with copies of all exceptions listed therein (the "Title Report"). City will have 10 days from receipt of the Title Report to review the Title Report and to notify Sellers, in writing, of City's disapproval of any exceptions shown in the Title Report. Those exceptions not objected to by City are referred to below as the "Permitted Exceptions." Zoning ordinances, building restrictions, taxes due and payable for the current tax year, and reservations in federal patents and state deeds shall be deemed Permitted Exceptions. If City notifies Sellers of disapproval of any exceptions, Sellers shall have 15 days after receiving the disapproval notice to either remove the exceptions or provide City with reasonable assurances of the manner in which the exceptions will be removed before the transaction closes. If Sellers do not remove the exceptions or provide City with such assurances, City may terminate this Agreement by written notice to Sellers given within 15 days after expiration of such 15-day period, in which event the earnest money shall be refunded to City and this Agreement shall be null and void. PAGE 2-M E M ORAN D U M OF U N DE RSTAN DIN G G:\LEGAL\MIKE1REAL PROPERTY~_ALLER PURCHASE & EASEMENT AGREEMENT.WPD $. Deed. On the Closing Date, Sellers shall execute and deliver to City a statutory warranty deed conveying the open space property to City, free and clear of all liens and encumbrances except the Permitted Exceptions. 6. Taxes; Prorates. Real property taxes for the current tax year, insurance premiums (if City assumes the existing policy) and other usual items shall be prorated as of the Closing Date. 7. Possession, City shall be entitled to possession immediately upon closing. 8. Sellers' Representations. Sellers represent and warrant to City as follows: 8.1 .Sellers have received no written notice of any liens to be assessed against the property 8.2. Sellers have received no written notice from any governmental agency of any violation of any statute, law, ordinance, or deed restriction, rule, or regulation with respect to the property. 8.3. The property has never been used for the storage or disposal of any hazardous material or waste. There are no environmentally hazardous materials or wastes contained on or under the property and the property have not been identified by any governmental agency as a site upon which environmentally hazardous materials or wastes have been or may have been located or deposited. All representations and warranties contained in this Agreement will survive closing and the conveyance of the property to City. 9. Binding Effect. This Agreement is binding on and will inure to the benefit of Sellers, City, and their respective heirs, legal representatives, successors, and assigns. 10. Notices. All notices and communications in connection with this Agreement shall be given in writing and shall be transmitted by certified or registered mail, return receipt requested, to the appropriate party at the address first set forth above. Any notice so transmitted shall be deemed effective on the date it is placed in the United States mail, postage prepaid. Either party may, by written notice, designate a different addresS for purposes of this Agreement. 11. Applicable Law. This Agreement shall be construed, applied, and enforced in accordance with the laws of the state of Oregon. PAGE 3- M E M ORA N D U M O F U N D E RSTAN D I N G G:\LEGAL\MIK~REAL PROPERTY~-ALLER PURCHASE & EASEMENT AGREEMENT.WPD 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 AND WHICH LIMIT LAWSUITS AGAINST FARMING OR FOREST PRACTICES AS DEFINED IN ORS 30.930 IN ALL ZONES. 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. City ~K~hla~~___~ Sellers By 2~ /'~ '--~'~ By Title ~-,.'(',,, ~,,,.,,~,~'a.~-oA..Title By Title PAGE 4-MEMORANDUM OF UNDERSTANDING G:\LEGAL\MIKE\REAL PROPERTY~-ALLER PURCHASE & EASEMENT AGREEMENT.WPD EXHIBIT A A Parcel of land in Township 39 South, Range 1 East of the Willamette Meridian, Donation Land Claim No. 40, Partition Plat P-11-2004, recorded in Volume 15, page 11 of the Jackson County Partition records, City of Ashland, Jackson County, Oregon as follows: Parcel 3. PAGE 5-M EMORAN DU M OF U N DE RSTAN DING G:\LEGAL\MIKE\REAL PROPERTY~-ALLER PURCHASE & EASEMENT AGREEMENT.WPD EXHIBIT B Detach this page and attach map of property being purchased with approximate MLP lines on it. See Recital A. PAGE 6-M E MO RAN DU M OF U N D E RSTAN D I N G G:\LEGAL\MIKL~REAL PROPERTY~ZALLER PURCHASE & EASEMENT AGREEMENT.WPD La dAme ica Lawyers Title 1400 Ashland Street Ashland, Oregon 97520 Tel: (541) 488-2240 Fax: 488-1786 Lawyers Title Insurance Corporation Attn' Patricia Gray 1400 Ashland Street Ashland, Oregon 97520 Date prepared: 03/26/04 SUPPLEMENTAL-SEE NOTE PRELIMINARY TITLE REPORT FOR ISSUING TITLE INSURANCE Reference' Order No: 40g0400431 Your Ref: Geddes/Zaller-City of Ashland Property Address: Open Space on Oak Street Ashland Oregon 97520 LAWYERS TITLE INSURANCE CORPORATION is prepared to issue title insurance, as of the effective date and in the form and amount shown on Schedule A, subject to the conditions, stipulations and exclusions from coverage appearing in the policy form and subject to the exceptions shown on Schedule B. This report is preliminary to the issuance of a policy of title insurance and shall become null and void unless a policy is issued and the full premium paid. This report is for the exclusive use of the persons to whom it is addressed. Title insurance is conditioned on recordation of satisfactory instruments that establish the interests of the parties to be insured; until such recordation, the Company may cancel, amend, or supplement this report for any reason. Thank you for placing the order with us. Any questions concerning the closing of this transaction should be directed to your escrow officer; questions regarding exceptions shown on this preliminary title report may be directed to your title officer. Escrow Officer: Patricia Gray Title Officer: Robert A. Bennett Please call your title officer if you would like copies in this report. PRELIMINARY TITLE REPORT DATED March 17, 2004 Order No. 40g0400431 SCHEDULE A, Page No. I The effective date of this preliminary title report is 5:00 P.M. on March 17, 2004 The policies and endorsements to be issued and the related charges are: Policy/Endorsement Description Liability ALTA 1992 Standard Owner's $ 60,000.00 $ Charge 272.00 Title to the land described herein is vested in: John R. Zaller and Barbara J. Geddes Rate The land referred to in this report is described as follows: As fully set forth on Exhibit "A" attached hereto and by this reference incorporated herein. PRELIMINARY TITLE REPORT DATED March 17, 2004 Order No. 40g0400431 SCHEDULE B, Page No. 1 Except for the items properly cleared through closing, the proposed policy or policies will not insure against loss or damage which may arise by reason of the following' STANDARD EXCEPTIONS: 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 pubic record; 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 record. 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, or claims of easement, not shown by the public records; 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 taxes, workman's compensation, services, labor, equipment rental 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. SPECIAL EXCEPTIONS: 6. City Liens of the City of Ashland, Oregon, if any. 7. The effect of said'property, or any part thereof, lying within the Talent Irrigation District, and subject to all water and irrigation rights, easements for ditches and canals, and all regulations of said District, including any and all assessments, liens and charges assessed, and to be assessed. 8. Rights of way and right of entry to maintain and repair any ditches through said tract, as reserved in deed recorded September 5, 1898, in Volume 31 page 605 of the Deed Records of Jackson County, Oregon. 9. Right of way for ditches and sewer iine as set out in deed recorded February 29, 1908, in Volume 63 page 271 of the Deed Records of Jackson County, Oregon. 10. Natural drainage way easement for Ashland Creek. Also disclosed within the dedication and as shown on Minor Land Partition #8308, filed April 4, 1980, in Volume 3, page 48 of the "Minor Land Partitions" Records of Jackson County, Oregon. 11. Deleted. 12. Deleted. 13. Deleted. Continued Dated as of March 17, 2004 Order No. 40g0400431 14. Drainage Easement, as shown on Major Land Partition #P-10009, filed July 5, 1984, in Volume 2, page 62 of the "Major Land Partitions" of Jackson County, Oregon. (Affects portion of westerly line) 15. Deleted. 16. Parcel No. 3 is to be held in common by the fee titleholders of Parcels No. 1 and 2 and shall be utilized as a "common area" with no building construction to take place thereon, as set forth by the City of Ashland Planning Commission, as set forth on the dedication on said survey #10009. 17. Trust deed to secure an indebtedness in the amount shown below, and any other obligations secured thereby, Dated : November 26, 2003 Recorded : December 12, 2003 Record No. : 03-83883 Grantor : John R. Zaller and Barbara Jo Geddes Trustee : First American Title Insurance Company of Oregon Beneficiary : Rogue River Family Practice Clinic Profit Sharing Plan Amount : $300,000.00 (Includes additional property) 18. Any adverse claim based on the assertion that any portion of the subject property has been created by artificial means or has accreted to such portions so created, or based upon the provisions of ORS 274.905 through 274.940. 19. Any adverse claim based on the assertion that some portion of the subject property has been removed from or brought within the property's boundaries by the process of accretion or reliction, or any change in the location of Ashland Creek. 20. Rights of the public, riparian owners ,and governmental bodies as to the use of the waters of Ashland Creek and the natural flow thereof on and across that portion of the subject property lying below the high water line of said waterway. 21. Deleted. 22. The following, as set forth on said Plat P-11-2004: These parcels are subject to an easement granting the right to enter to repair and maintain ditches as reserved in Volume 31, page 605, Deed Records, Jackson County, Oregon, and a right of way for the Frank Smith or B.F. Meyer ditch as recorded in Volume 63, page 271 of said Deed Records. No ditches which are in use or which have been recently in use were found on these parcels as a part of this survey. Continued Dated as of March 17, 2004 Order No. 40g0400431 END OF EXCEPTIONS NOTES: A: We have searched and find no federal or state liens or judgments of record in Jackson County, Oregon against names similar to the above named vestee(s) or City of Ashland, as of the date hereof. B: 2003-04 real property taxes, paid in full. Total Tax: $565.65. (Code 5-01, Account #1-092415-9, Map #391E04CA, Tax Lot #2709) 2003-04 real property taxes, paid in full. Total Tax: $642.99. (Code 5-01, Account #1-092414-2, Map #391E04CA, Tax Lot #2708) 2003-04 real property taxes, paid in full. Total Tax: $1,668.78. (Code 5-01, Account #1-064508-0, Map #391E04CA, Tax Lot #2702) C: The policy premium amount has been reduced by application of a special re-issue credit of $68.00. D: We require a copy of the Ordinance of City of Ashland, adopted after the notice and hearing required by ORS 271..725, authorizing the purchase of the subject property. E: JACKSON COUNTY RECORDING FEES ARE AS FOLLOWS: 1. $ 5.00 per page, plus 2. $ 5.00 per document (Public Land Corner Preservation Fee) 3. $11.00 per document (Assessment and Taxation Fund) 4. $ 5.00 for each additional title in a document with multiple titles 5. $20.00 per each non-standard document which fails to meet the requirements established by ORS 205.232 & 205.23~. LENDER NOTE: "LAWYERS TITLE INS~CE CORPORATION, A VIRGINIA CORPORATION" is the correct name to use if you are going to use this company as the trustee for a trust deed used in this transaction. DAB/j ap NOTE: SUPPLEMENTAL TO UPDATE REPORT, AND CHANGE LEGAL DESCRIPTION, DELETE EXCEPTION NOS. 11, 12, 13, ~ 15, AIFD TO INCLUDE NEW EXCEPTION NOS. 21 AND 22. 40g0400431 EXHIBIT A Parcel No. Three (3) of Partition Plat recorded March 16, 2004, as Partition Plat No. P-11-2004 of "Record of Partition Plats" in Jackson County, Oregon, and filed as Survey No. 18168 in the Office of the County Surveyor. (Code 5-01, Account #1-092415-9, Map #391E04CA, Tax Lot #2709) (Code 5-01, Account #1-064508-0, Map #391E04CA, Tax Lot #2702) (Code 5-01, Account #1-092414-2, Map #391E04CA, Tax Lot #2708) ".-..z ' / '~ ' ,~ I ,, ,. ~. PARCEL 2 _.~.~'2~ ~'~ / , ~ I~ 30,985 s~. ~.~ ~l~Z~ L~ ~ ~ I I ~ I~ ,C , .~ ~ ~, ~J (SEE FS 10009) ~ o z m ~ ,~ ~ ~ · I N89'54'U~"b ~(~ EA~ENT NO~ I ..... 2~.2.~ FD 12' DEEP ~ ~ ~ ~ DETAIL PARCEL 3 17,481 SO. FT,± OPEN SPACE DEDICATED TO THE CITY OF' ASHLAND FD UNDER FENCE, 6" DEEP SOUTH BOUNDARY VOL. PG. 271, PER FS 8308 S8935'OS'E \ (RI=85.21 ') LEGEND SURVEYED PROPERTY UNE FS 115,58 EASEMENT FENCE FOUND MCXgUMENT AS NOT SET 5/8" X $0' IRON PIN 'OSIdUS PLS 2464. ' UNLE~ FOUND 5/8' IRON PIN WI 'E.L. SWAIN RLS 759' F"R( UNLESS OTHERWISE NO'I~ FOUND 5/8' IRON PIN W/ SWAIN LS 759' FRO~ FS FS FILED SURVEY-JACKSON FOUND IP IRON PIN DLC DONATION LAND Q.AIM PT. 'B' VOL., PG DEED RECORDS, JACKSON F5 12240 OR- O~¢'IClAL RECORDS. JACK<. · PUE PUBUC UTILITY AND CABL eFO S 72" E, 0.13' AND 12" DEEP (DISTURBED BY FENCE POST) (CENTER OF FENCE POST BEARS S 45' W, O. 7' FROM PIN.) SW COR DLC NO. 41 F'D 2 1/2' BRASS DISK IN MONUMENT CASE MARKED: T39S ESE I SW COR 40I 4.1 BA: TRUE A JACKS~ CON]R. AT PO 1000~.