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HomeMy WebLinkAboutStaff Report 4.A 10/15/2018L� zs5$ DATE: October 15, 2018 TO: Honorable Chairperson and Members of the Petaluma Community Development Successor Agency through Executive Director FROM: Ingrid Alverde, Economic Development Manager SUBJECT: Introduction of an Ordinance Approving a Land Purchase Agreement Between Foothill Family Motors Group LLC and the City of Petaluma Regarding Real Property Commonly Known as Industrial Drive and Auto Center Drive (APN 150-020-07) and Authorizing the City Manager to Execute all Documents Necessary to Complete the Sale RECOMMENDATION It is recommended that the Petaluma Community Development Successor Agency introduce the Ordinance Approving a Land Purchase Agreement Between Foothill Family Motors Group LLC and the City of Petaluma Regarding Real Property Commonly Known as Industrial Drive and Auto Center Drive (APN 150-020-07) and Authorizing the Executive Director to Execute all Documents Necessary to Complete the Sale. BACKGROUND The former Petaluma Community Development Commission (PCDC) purchased a 2.6 -acre property located between Auto Center Plaza and Old Corona Road (APN 150-020-07) in December of 1988 as part of the development of the Auto Plaza. The property was originally encumbered with a large drainage easement that was vacated after improvements to the neighboring creek were completed. While still located in the flood plain, this property has a small portion of land located outside the flood plain and thus has some development potential. The property is in the Auto Plaza Planned Unit Development which limits the potential uses for the property to the sale of new cars or used cars. In 2012, the State of California dissolved redevelopment agencies statewide and adopted legislation outlining how the dissolution of each agency would be conducted. One of the requirements was to catalogue all property owned by the former redevelopment agency and adopt a plan for liquidating the assets. The Petaluma Community Development Successor Agency (Successor Agency) was established to take over all former PCDC activities and manage the liquidation process. The Successor Agency approved a Long -Range Property Management Plan (Plan) in 2013. The State Department of Finance also approved the Plan that same year. The Industrial Drive Property was identified in that Plan as a property that was not needed to enforce any existing obligations and was therefore approved to be sold at fair market value. DISCUSSION The property was listed for sale in 2017 for $1,160,000 based on an appraisal conducted in 2016. The appraisal considered comparable sales of properties zoned for auto sales in and around the Bay Area. Foothill Family Motors Group, LLC, offered to purchase the property for $1,000,000. The offer is contingent upon the buyer receiving entitlements to build an auto dealership on the property. The buyer has offered to open escrow with a $25,000 deposit which would be increased by $75,000 to a total of $100,000 within 180 days of opening escrow. During the initial 180 days of escrow, the buyer will conduct due diligence activities to determine if the property can be developed to meet their goals. The buyer will have another 12 months after the initial due diligence period to complete necessary entitlements before closing escrow. This offer is consistent with the proposal in the adopted Long -Range Property Management Plan. If the Successor Agency approves the sale of this property, then the proposal will be forwarded to the Sonoma County Oversight Board that now oversees all activities related to Successor Agencies throughout the County. If the Oversight Board approves the sale, then the final step will be to achieve approval from the State Department of Finance. FINANCIAL IMPACT The sale of the property would provide approximately $150,000 in one-time additional revenue to the City of Petaluma which represents the City's share of any proceeds received by the County for assets sold because of the dissolved former redevelopment agency. If developed as a new car dealership, the sale of the property could also yield another $100,000 - $500,000 annually from . sales tax generated by auto sales, depending on the kind and number of vehicles sold. ATTACHMENTS 1. Ordinance authorizing the sale of the property a. Exhibit A of the Ordinance- Purchase and Sale Agreement 2 Attachment 1 Ordinance No. 2017 - Of the City of Petaluma, California Ordinance Approving a Land Purchase Agreement Between Foothill Family Motors Group LLC and the City of Petaluma Regarding Real Property Commonly Known as Industrial Drive and AuOrdinance Approving a Land Purchase Agreement Between Foothill Family Motors Group LLC and the City of Petaluma Regarding Real Property Commonly Known as Industrial Drive and Auto Center Drive (APN 150-020-07) to Center Drive (APN 150-020-07) WHEREAS, Section 46 of the Charter of the City of Petaluma requires that actions for the acquisition, sale, or lease of real property be taken by Ordinance except for such actions involving sums less than $3,000 or actions pursuant to general state law; WHEREAS, as authorized by applicable law, the City of Petaluma has elected to serve as the Successor Agency to the former Petaluma Community Development Commission ("PCDC"); and, WHEREAS, Health and Safety Code Section 34191.5(b) requires the Successor Agency to prepare a Long -Range Property Management Plan ("Plan") to address the disposition and use of the real property of the former PCDC; and, WHEREAS, the Successor Agency received, reviewed, considered, and approved the Plan on October 7, 2013; and, WHEREAS, one of the properties identified in the plan was a 2.6 -acre parcel located on Industrial Drive between Auto Plaza Drive and Old Corona Road, identified as Assessor Parcel Number 150-020-036, ("The Property"); and, WHEREAS, The Property is zoned as part of the Auto Plaza Planned Unit Development which allows for new or used car sales; and, WHEREAS, The Property was listed for sale in 2016; and, WHEREAS, an offer to purchase the property for $1,000,000 was received; and, WHEREAS, The Foothill Family Motors Group LLC plans to develop the property with an auto dealership; and NOW, THEREFORE, BE IT RESOLVED BY THE PETALUMA COMMUNITY DEVELOPMENT SUCCESSOR AGENCY AS FOLLOWS: Section 1. The Petaluma Community Development Successor Agency approves the purchase and sale agreement between the Petaluma Development Successor Agency and Foothill Family Motors Group LLC, in the amount of $1,000,000 (Agreements), copies of which are attached as Exhibit A and incorporated herein as reference. Section 2. The Executive Director is authorized and directed to execute the Agreements and all other documents reasonably necessary to complete the purchase and sale, according to the terms of the Agreements. Section 3. If any section, subsection, sentence, clause, phrase or work of this Ordinance is for any reason held to be unconstitutional, unlawful or otherwise invalid by a court of competent jurisdiction or preempted by State legislation, such decision or legislation shall not affect the validity of the remaining portions of this Ordinance. The City Council of the City of Petaluma hereby declares that it would have passed and adopted this Ordinance and each and all provisions thereof irrespective of the fact that any one or more of said provisions be declared unconstitutional, unlawful other otherwise invalid. Section 4. This Ordinance shall become effective thirty (30) days after the date of its adoption by the Petaluma City Council. Section 5. The City Clerk is hereby directed to publish or post this Ordinance or a synopsis for the period and in the manner provided by the City Charter and any other applicable law. 4 THIS fcRM FOR USE IH CALIFORNIA ONLY LAND PURCHASE AGREEMENT Real RsiateFams since t986 DEFINITIONS BROKER includes cooperating broker and all sales persons. DAYS means calendar days, midnight to midnight, unless otherwise specified. BUSINESS DAY excludes Saturdays, Sundays and legal holidays. DATE OF ACCEPTANCE means the date Seller accepts the offer or the Buyer accepts the counter offer, and the written acceptance Is put in the course of transmission to the other party. This rule also applies to the removal of contingencies. DELIVERED means personally delivered, transmitted electronically in accordance with applicable laws, by a nationally recognized overnight courier, or by first class mail, postage prepaid. In the event of mailing, the document will be deemed delivered three (3) business days after deposit; in the event of overnight courier, one (1) business day after deposit; and if electronically at the time of transmission provided that a transmission report is generated and retained by the sender reflecting the accurate transmission of the document, Unless otherwise provided in this Agreement or by law, delivery to the agent will constitute delivery to the principal. DATE OF CLOSING means the date title is transferred. TERMINATING THE AGREEMENT means that both parties are relieved of their obligations and all deposits will be returned to Buyer. PROPERTY means the real property and any personal property included in the sale. AGENCY RELATIONSHIP CONFIRMATION. The following agency relationship is hereby confirmed for this transaction and supersedes any prior agency election: LISTING AGENT _ Keegan & Coppin Co Inc is the agent of (check one): (Print Firm Name) j� the Seller exclusively; or ❑ both the Buyer and the Seller. SELLING AGENT: ProEciulty Asset Management Cora (t( not the same as the Listing Agent) is the agent of (check one); (Print Firm Name) J} the Buyer exclusively; or ❑ the Seller exclusively; or ❑ both the Buyer and the Seller. Note: This confirmation DOES NOT take the place of the AGENCY DISCLOSURE required by law Foothill Family Motors Group, LLC hereinafter designated as BUYER, offers to purchase the real property situated in Petaluma County of Sonoma 1 California, consisting of approximately 2,6 Xacres, ❑ sq. ft. commonly known as APN: 150-020-036- Industrial Avenue Petaluma, CA 94952 FOR THE PURCHASE PRICE OF $ 1.000 000.00 (One Million and no/100 dollars) on the following terms and conditions: 1. FINANCING TERMS. A. $ 25 000,00 DEPOSIT evidenced by [D check, or [I other: held uncashed until acceptance and not later than three (3) business days thereafter deposited toward the purchase price with Old Republic Title Company - Julie James B. $ 75,000.00 ADDITIONAL CASH DEPOSIT to be placed In escrow X within 180 days after acceptance, [J upon removal of all conditions. C. $ 900.000.00 BALANCE OF CASH PAYMENT needed to close, not including closing costs. D. $ - BONDS OR ASSESSMENTS of record if assumed by buyer. E, $ - OTHER FINANCING TERMS: H.$ 1.000,000.00 TOTAL PURCHASE PRICE (not including closing costs), 2. EXAMINATION OF TITLE. In addition to any encumbrances assumed or taken "subject to," Seiler will convey title to the property subject only to: [11 real estate taxes not yet due; and [21 covenants, conditions, restrictions, rights of way and easements of record, if any, Within three (3) days after acceptance, Buyer will order a Preliminary Title Report and copies of CC&Rs and other documents of record if applicable, Within five (5) days after receipt, Buyer will report to Seller In writing any valid objections to title contained in such report (other than monetary liens to be paid upon close of escrow). If Buyer objects to any exceptions to the title, Seller will use due diligence to remove such exceptions at his or her own expense before close of escrow. If such exceptions cannot be removed before close of escrow, this Agreement will terminate, unless Buyer elects to purchase the property subject to such exceptions. If Seller concludes he or she is in good faith unable to remove such objections, Seller will so notify Buyer within ten (10) days after receipt of said objections. In that event Buyer may terminate this Agreement. 3, OPTIONAL CONDITIONS. Provisions 3-A through 3-G, if initialed below by Buyer, are included in this Agreement: r A. SOIL TESTS. Upon acceptance of this Agreement, Buyer will have the right to go on the property to conduct soil tests, including percolation tests, to ascertain whether the property is suitable for the improvements which Buyer proposes to make. All expenses of such tests will be borne by the ❑ Buyer, ❑ Seller. Buyer will be responsible for the repair and Buyer I t -land Seller I i I have read this page. P Of 6 CAUTION: This form may not be legally enforceable if it is not the most current version. The copyright laws of the United States forbid the unauthorized reproduction of this form by any means including scanning or computerized formats. FORM 101-LA.1 CAL (10-2015) COPYRIGHT BY PROFESSIONAL. PUBLISHING LLC, NOVATO, CA Al PROFESSIONAL pUBLiSNINC UC Form generated by: Truerorms" 800-499-9612 Property Address, APN. 150-020-0360 Industrial Avenue Petaluma CA 94952 restoration of any damage to the property which may be caused by such tests. If in the reasonable opinion of the soils engineer, employed by Buyer, the property is not suitable for the proposed development, Buyer may terminate this Agreement. Buyer will approve or disapprove the results of the tests in writing within days of acceptance, C B. SURVEY, Upon acceptance of this Agreement, a boundary line survey will be made by a licensed surveyor at the expense of the X Buyer, ❑ Seller, The surveyor will set and flag all property lines, to be approved in writing by Buyer prior to close of escrow. C. PRICE BASED ON AREA, The purchase price is based upon $ ❑ per acre, ❑ per square foot, and ❑ will, Mwill not be adjusted in accordance with the area set forth in the survey under Provision 3-B. 1�_ J D. GEOLOGICAL REPORT. Upon acceptance of this Agreement, Buyer will have the right to obtain a geological report from a registered geologist at the expense ofX Buyer❑ seller, Buyer will be deemed to have approved said report unless written notice to the contrary is delivered to Seller or his or. her Broker within . days of acceptance. In the event of disapproval, Buyer may terminate this Agreement. f t E. WELL REPORT. Upon acceptance of this Agreement, Buyer will obtain a well report from a licensed well drilling con- tractor at the expense of ❑ Buyer, ❑ Seller. Buyer will approve or disapprove the results of the tests in writing within days of acceptance. In the event of disapproval, Buyer may terminate this Agreement. i 1 F C€RTiFICATE OF COMPLIANCE. This offer is conditioned upon obtaining a Conditional Certificate of Compliance from at the expense of ❑ Buyer ❑ Seller within _ days of acceptance. (Under Government Code §66499.35, a buyer or seller may apply to the local agency for a certificate that all of the subdivision laws applicable to the lot have been satisfied.) I G. TAX DEFERRED E=XCHANGE (INVESTMENT PROPERTY). In the event Seiler wishes to enter into a tax deferred exchange for the property, or Buyer wishes to enter into a tax deferred exchange with respect to property owned by him or her in connection with this transaction, each of the parties agrees to cooperate with the other party in connection with such exchange, including the execution of such documents as may be reasonably necessary to complete the exchange, provided that: (a) the other party will not be obligated to delay the closing; (b) all additional costs in connection with the exchange will be borne by the party requesting the exchange; (c) the other party will not be obligated to execute any note, contract, deed or other document providing for any personal liability which would survive the exchange; and (d) the other party will not take title to any property other than the property described in this Agreement, The other party will be indemnified and held harmless against any liability which arises or is claimed to have arisen on account of the exchange. 4. BONDS AND ASSESSMENTS. All bonds and assessments which are part of or paid with the property tax bill will be assumed by the Buyer. In the event there are other bonds or assessments which have an outstanding principal balance and are a lien upon the property, the current installment will be prorated between Buyer and Seller as of the date of closing. Future installments will be assumed by Buyer WITHOUT CREDIT toward the purchase price, EXCEPT AS FOLLOWS: This Agreement is conditioned upon both parties verifying and approving in writing the amount of any bond or assessment to be assumed or paid within ten (10) days after receipt of the preliminary title report or property tax bill, whichever is later, in the event of disapproval, the disapproving party may terminate this Agreement. S. EVIDENCE OF TITLE will be in the form of a policy of title insurance, issued by. Old Republic Title Company. paid by X Buyer, ❑ Seller, ❑ Other , NOTE: In addition to coverage under a standard CLTA policy, the ALTA Owner's Policy, or CLIA Homeowner's Policy of Title Insurance may offer additional coverage for a number of unrecorded matters. Buyer should discuss the type of policy with the title company of their choice at the time escrow is opened. in the event a lender requires an ALTA lender's policy of title insurance, ❑ Buyer, ❑ Seller will pay the premium. 6 PRORATIONS. Rents, real estate taxes, interest, payments on bonds and assessments assumed by Buyer, and homeowners association fees will be prorated as of the date of recordation of the deed. Security deposits, advance rentals, or considerations involving future lease credits will be credited to Buyer. 7, CLOSING, Full purchase price to be paid, deed to be recorded, and physical possession of the property to be delivered ❑ on or before See I of Addendum , or ❑within days of acceptance. If the closing date falls on a Saturday, Sunday or holiday, the close of escrow will be on the next business day, Both parties will deposit with an authorized escrow holder, to be selected by Buyer, all funds and instruments necessary to complete the sale in accordance with the terms of this Agreement. ❑ Where customary, signed escrow instructions will be delivered to escrow holder within days of acceptance. Escrow fee to be paid by Buyer , County/City Transfer Tax(es), if any, to be paid by Seller , Unless the transaction is exempt, the escrow holder is instructed to remit the required tax withholding amount to the Franchise Tax Board from the proceeds of sale, THIS PURCHASE AGREEMENT TOGETHER WITH ANY ADDENDA WILL CONSTITUTE JOINT ESCROW INSTRUCTIONS TO THCROW Dt R, [ 1 and Seller r_w j r i have read this page. Page of CAUTION: This form may not be legally enforceabte, it it Is not the most current version. The copyright laws of the United States forbid the unauthorized reproduction of this form by any means including scanning or computerized formats. FORM 1o1•LA.2 CAL (10,2015) COPYRIGHT BY PROFESSIONAL PUBLISHING LLC, NOVATO, CA PA PUBLISHING AL Form 90 orated by: TrrleForms" $00-498-9612 Property Address: ^ APN: 150-020-036, Industrial Avenue Petaluma CA 84952 8 VESTED TITLE. The manner of taking title may have significant legal and tax consequences. Buyer should obtain advice from his or her legal or tax counsel regarding this matter, 9. PROPERTY INVESTIGATIONS. This Agreement is contingent upon Buyer's independent investigation of the following conditions relating to the property. A. Zoning and land use designations and requirements. B. Availability of utilities and costs of development, C. Toxic contamination. Buyer will approve or disapprove in writing all inspection reports within hfteei i f 16) (or 180 ) days after acceptance. In the event of Buyers disapproval, Buyer may, within the time stated or mutually agreed upon extension, elect to terminate this Agreement. 10. MEDIATION OF DISPUTES, If a dispute arises out of or relates to this Agreement or its breach, by initialing in the "agree" spaces below the parties agree to first try in good faith to settle the dispute by voluntary mediation before resorting to court action or arbitration, unless the dispute is a matter excluded under Item 12 -- ARBITRATION. Any fee to initiate the mediation will be paid by Seller, provided that the mediation costs and fees, including any initiation fee, ultimately will be bome as determined by the parties. if mediation does not resolve the dispute and arbitration or litigation is pursued, then the costs of mediation, including any initiation Te all b orne as determined by the arbitrator or the court. If a party initials the "agree" space and later refuses mediation, that p of be entitled to recover prevailing party attorney fees in any subsequent action. Buyer agrees L l f_ 1 Buyer does not agree [ l I t Seller agrees I 1 (_ � Seller does not agree 11. DEFAULT • LIQUIDATED DAMAGES. A. if the escrow does not close on or before the date set forth in Item 7, or a later closing date mutually agreed to by the Seller and Buyer, within 15 days after closing date set forth in Item 7, or the extended closing date mutually agreed to by Seller and Buyer, Seller will, except as provided in (B) below, order all of the moneys remitted by Buyer under the terms of this contract to be refunded to Buyer, B. If Buyer fails to complete the purchas f the property because of a default by Buyer, Seller may pursue any remedy in law or equity that it may gainst Buyer on account of the default; provided, however, that by placing their initials here, Buyer f and Seller L��a agree that: 1. $_ 25.000.00 , an amount to exceed the money deposited by Buyer under this contract will constitute liquidated damages payable to Seller if Buyer fails to complete the purchase of the property because of a default by Buyer. 2. The payment of such liquidated damages to Seller will constitute the exclusive remedy of Seller on account of any default by Buyer. 3. Liquidated damages will be payable to Seller out of Buyer's deposits toward purchase of the property according to the following procedures: a. The Seller will give written notice ('Seller's notice and demand'), in the manner prescribed by §116,340 of the Code of Civil Procedure for service in a small claims action, to escrow holder and to Buyer that Buyer is in default under this Agreement and that Seller is demanding that the escrow holder remit the aforesaid amount from the deposits to Seller as liquidated damages unless, within twenty (20) days, Buyer gives the escrow holder Buyer's written objection to disbursement of said deposits as liquidated damages ('Buyer's objection'). b. Buyer will have a period of 20 days from the date of receipt of Seller's notice and demand in which to give the escrow holder Buyer's objection. c. If Buyer fails to give the escrow holder Buyer's objection within 20 days from the date of receipt of Seller's notice and demand: (a) escrow holder will promptly remit the amount demanded to Seller; and (b) Seller is released from any obligation to sell the property to Buyer, d. if Buyer gives escrow holder Buyer's objection within 20 days from the date of receipt of Seller's notice and demand, then the determination as to whether Seller is entitled to the disbursement of the deposits as liquidated damages, and every other cause of action that has arisen between Buyer and Seller under this Agreement, will be settled by arbitration in accordant© with the provisions of Item 10, ARBITRATION OF iSPUTES, provided that both the Buyer and Seller have initialed the "agree" space in said provision. the arbitration clause Is not initialed by both parties, any dispute will be resolved by mediation or appropriate court action, guy4of j r and Seiler r t f i have read this page. Page CAUTION: This form may not be legally enforceable it it is not the most current version. The copyright laws or the United States forbid the unauthorized reproductlon of this form by any means including scanning or computerized formats, FORM 101•LA.3 CAL (10-2015) COPYRIGHT BY PROFESSIONAL PUBLISHING LLC, NOVATO, CA 1pj( PUBtISNING LL[ PROFESSIONAL �0 Form genereled by: True Forms" 800-499-9612 Property Address: APN: 150-020.036, industrial Avenue Petaluma, CA 94952 12. ARBITRATION OF DISPUTES. Any dispute or claim in law or equity arising between the Buyer and Seller out of this Agreement, whether sounding in tort or contract, will be decided by neutral binding arbitration in accordance with the California Arbitration Act (C.C.R §1280 et seq.), and not by court action except as provided by California law for judicial review of arbitration proceedings. If the parties cannot agree upon an arbitrator, a party may petition the Superior Court of the county in which the property is located for an order compelling arbitration and appointing an arbitrator. Service of the petition may be made by first class mail, postage prepaid, to the last known address of the party served. Judgment upon the award rendered by the arbitrator may be entered in any court having jurisdiction. The parties will have the right to discovery in accordance with Code of Civil Procedure §1283.05. The parties agree that the following procedure will govern the making of the award by the arbitrator: (a) a Tentative Award will be made by the arbitrator within 30 days following submission of the matter to the arbitrator; (b) the Tentative Award will explain the factual and legal basis for the arbitrator's decision as to each of the principal controverted issues based upon substantive California law; (c) the Tentative Award will be in writing unless the parties agree otherwise; provided, however, that if the hearing is concluded within one (1) day, the Tentative Award may be made orally at the hearing in the presence of the parties. Within 15 days after the Tentative Award has been served or announced, any party may serve objections to the Tentative Award. Upon, objections being timely served, the arbitrator may call for additional evidence, oral or written argument, or both. If no objections are filed, the Tentative Award will become final without further action by the parties or arbitrator. Within thirty (30) days after the filing of objections, the arbitrator will either make the Tentative Award final or modify or correct the Tentative Award, which will then become final as modified or corrected. The provisions of the Code of Civil Procedure authorizing the Imposition of sanctions as a result of bad faith actions or tactics will apply to the arbitration proceedings, provided, however, that the arbitrator shall not have the power to commit errors of law, errors of legal reasoning, or rely upon unsupported findings of fact in Imposing sanctions for any reason against a party or a party's attorney. In the event such error is claimed, the applicable sanctions may be vacated or corrected on appeal to a court of competent jurisdiction for any such error. A prevailing party will also be entitled to an action for malicious prosecution if the elements of such cause of action are met, The following matters are excluded from arbitration: (a) a judicial or non -judicial foreclosure or other action or proceeding to enforce a deed of trust, mortgage, or real property sales contract as defined in Civil Code §2985; (b) an unlawful detainer action; (c) the filing or enforcement of a mechanic's lien; (d) any matter which is within the jurisdiction of a probate court, bankruptcy court, or small claims court; or (e) an action for bodily injury or wrongful death. The filing of a judicial action to enable the recording of a notice of pending action, for order of attachment, receivership, injunction, or other provisional remedies, will not constitute a waiver of the right to arbitrate under this provision. NOTICE: By initialing in the "agree" space below you are agreeing to have any dispute arising out of the matters included in the "Arbitration of Disputes" provision decided by neutral arbitration as provided by California law and you are giving up any rights you might possess to have the dispute litigated in a court or jury trial, By initialing in the "agree" space below you are giving up your judicial rights to discovery and appeal, unless those rights are specifically included in the "Arbitration of Disputes" provision. If you refuse to submit to arbitration after agreeing to this provision, you may be compelled to arbitrate under the authority of the California Code of Civil Procedure. Your agreement to this arbitration provision is voluntary. ave read and understand the foregoing and agree to submit disputes arising out of the matters included in ` it on of Disputes" provision to neutral arbitration. C 1 Buyer agrees I 1 L�j Buyer does not agree U t�l Seller agrees C 1 ( a Seller does not agree 13. ATTORNEY, FEES, in any action, arbitration, or other proceeding involving a dispute between Buyer and Seller arising out of the execution of this Agreement or the sale, whether for tort or for breach of contract, and whether or not brought to trial or final judgment, the prevailing party will be entitled to receive from the other party a reasonable attorney fee, expert witness fees, and costs to be determined by the court or arbitrator(s), except as provided in Item 10 -- MEDIATION. 14. ADDENDA. The following addenda are attached and made a part of this Agreement: XADDENDUM TO LAND PURCHASE AGREEMENT jQjSTANDARD DISCLOSURES AND DISCLAIMERS ❑ NATURAL HAZARD DISCLOSURE g( Disclosure Regarding Agency Relationship 15. SURVIVAL. The omission from escrow Instructions of any provision in this Agreement will not waive the right of any party. All repr tations or warranties will survive the close of escrow, Buye L i and Seller [_ _ j C 1 have read this page. Page 4 of 6 CAUTION: This form may not be legally enforceable if it is not the most current version. The copyright laws of the United States forbid the unauthorized reproduction of this form by any means including scanning orcomputer#zed formats. FORM 101 -LAA CAL (,0-2015) COPYRIGHT BY PROFESSIONAL PUBLISHING LLC, NOVATO, CA PROFl:SSIONJAL Form generated by: 'I'MeForms" 800499.9612 IN PUBLISHINC LLC Property Address: APN: 150-020-036' Industrial Avenue Petaluma CA 84952 16, EXPIRATION OF OFFER. This offer will expire unless acceptance is delivered to Buyer or to ProEquityAsset Management Corp. (Buyer's Broker) on or before (date) , (time) DAM, ❑ PM. 17. COUNTERPARTS. This Agreement may be executed in one or more counterparts, each of which is deemed to be an original. 18. TIME, Time is of the essence of this Agreement; provided, however, that if either party fails to comply with any contingency in this Agreement within the time limit specified, this Agreement will not terminate until the other party delivers written notice to the defaulting party requiring compliance within 24 hours after receipt of notice. If the party receiving the notice fails to comply within the 24 hours, the non -defaulting party may terminate this Agreement without further notice. It is understood that neither the making of deposits nor the close of escrow is a contingency. 19, CONDITIONS SATISFIED/WAIVED IN WRITING. Each condition or contingency, covenant, approval or disapproval will be satisfied according to its terms or waived by written notice delivered to the other party or his or her Broker. 20, ENTIRE AGREEMENVASSIGNMENT PROHIBITED. This document contains the entire agreement of the parties and supersedes all prior agreements with respect to the property which are not expressly set forth. This Agreement may be modified only in writing signed and dated by both parties. Buyer may not assign any right under this agreement without the prior written consent of Seller, Any such assignment will be void and unenforceable. 21, ADDITIONAL TERMS AND CONDITIONS, Both parties acknowledge that they have not relied on any statements of the real estate Agent or Broker which are not expressed in this Agreement, LIMITATION OF AGENCY: A real estate broker or agent is qualified to advise on real estate. If you have any questions concerning the legal sufficiency, legal effect, insurance, or tax consequences of this document or the related transactions, consult with your attorney, accountant or insurance advisor. The undersigned er a knowledges that he or she has thoroughly read and approved each of the provisions of this offer and agrees to pur hase th property for the price and on the terms and conditions specified. Buyer acknowledges receipt of a copy of ' �� Y Date.... � er 1 Bu q � � � $/' ) Time Buyer Address Date . Time ACCEPTANCE Seller accepts the foregoing Offer and agrees to sell the property for the price and on the terms and conditions specified. NOTICE: The amount or rate of real estate commissions is not fixed by law, They are set by each Broker individually and may be negotiable between the Seller and Broker. 22. COMMISSION, Seller agrees to pay in cash the following real estate commission for services rendered, which commission Seller hereby irrevocably assigns to Broker(s) from escrow: 3% of the accepted price, or $ to the listing Broker: Keegan & Coonin Co. Inc. and of the accepted price, or $ , to the selling Broker: ProEquityAsset Management, Corp without regard to the agency relationship, Escrow instructions with respect to commissions may not be amended or revoked without the written consent of the Broker(s). If Seller receives liquidated or other damages upon default by Buyer, Seller agrees to pay Broker(s) the lesser of the amount provided for above or one half of the damages after deducting any costs of collection, including reasonable attorney fees. Commission will also be payable upon any default by Seller, or the mutual rescission by Buyer and Seller without the written consent of the Broker(s), which prevents completion of the purchase. This Agreement will not limit the rights of Broker and Seller provided for in any existing listing agreement. In any action for commission the prevailing party will be entitled to reasonable atto y feeswheth r not the action is brought to trial or final judgment. B er f 1 and Seller f i [ have read this page. Page 5 o CAUTION: This form may not he legally enforceable if it Is not the most current version, The copyright laws of the United States forbid the unauthorized reproduction of this form by any means Including scanning or computerized formats. FORM 101 -LAS CAL (10.2015) COPYRIGHT BY PROFESSIONAL. PUBLISHING LLC, NOVATO, CAPd PROFESSIONAL PUBLISHING LLC Form generated by:'TrueForms" 500-499-9612 Property Address: APN: 150-020-036; Industrial Avenue Petaluma, CA 94952 23. PROVISIONS TO BE INITIALED. The following items must be "agreed to" by both parties to be binding on either party. In the event of disagreement, Seller should make a counter offer. Item 10. MEDIATION OF DISPUTES Item 11. LIQUIDATED DAMAGES item 12. ARBITRATION OF DISPUTES Seller acknowledges receipt of a copy of this Agreement, Authorization is hereby given the Broker(s) in this transaction to deliver a signed copy to Buyer and to disclose the terms of purchase to a,multiple listing service, internet data source, or Association of REALTORS at close of escrow, 24. IF CHECKED ❑ACCEPTANCE IS SUBJECT TO ATTACHED COUNTER OFFER DATED Seller Seller (Signature) (Signature) (Please Print Name) (Please Print Name) Date Time Date Time Address Information Regarding Real Estate Licensees Acting As Agents In This Transaction: Selling Broker Pr_QFxWk Asset Management Corp. CalBRE License #_ By =- C"" - License # 01458435 Date (Real Estate Agent for Buyer) Alan Ming Address City/State/Zip Telephone Fax E -Mail Listing Broker Keegan 0 COppin Co ;Inc CaIBRE License # 00531022 By License # 00597970 / 01437146 Date (Real Estate Agent for Seller) Ken BIZ2ell / Sara Wann Address 1355 N. Dutton Avenue Suite 100 City/State/Zip Santa Rosa CA 95401 Telephone 707-528-1400 Fax 707-524-1419 E -Mail KBizzell 1 SWann@Kee4anCoppin.com Note that neither the Real Estate Brokers nor the Real Estate Agents are parties to the purchase Agreement between the Buyer and Seiler. y7I,�R,:" l1 Page 6 of 6 CAUTION: This form may not be legally enforceable If It is not the most current version, The copyright laws of the United States forbid the unauthorized roproduction of this form by any means Including scanning or computerized formats. FORM 101-LA.6 CAL (10.2015) COPYRIGHT BY PROFESSIONAL PUBLISHING LLC, NOVATO, CA Form generated by: Tt'ucForms" 800-4999612 PROFESSIONAL PUBLISIIIrING LLC STANDARD COMMERCIAL LAND PURCHASE CONDITIONS ADDENDUM To Purchase Agreement dated July 17, 2018 by and between Buyer Foothill Family Motors Group, LLC and Seller Petaluma Commmab Development Successor Ag_ency Buyer shall conduct a complete feasibility and investigation of the subject property to determine if property is suitable for Buyer's intent. Buyer to conduct a full due diligence of property including existing information provided by Seller and new reports prepared by Buyer's experts. This offer is subject to the following conditions precedent: A. Buyer and/or his engineer/architect to inspect said property and contacted governing municipalities in regard to location of all utilities, zoning, General Plan consistency and requirements for engineering said site to municipal and private standards to determine the general feasibility of the proposed development. Said approval or disapproval of the above by Buyer to be forthcoming within one hundred eighty (180) days of acceptance of this offer, B, Buyer to obtain archaeological, wetlands clearance, Tiger Salamander and any other governmental review or certification from the appropriate governing agencies within one hundred eighty (180) days of acceptance hereof. C. Buyer to obtain and approve an environmental hazard report prepared by a professional as to the presence or past existence of hazardous substances, contaminated water or above or underground storage facilities on the subject property or surrounding properties within one hundred eighty (180) days of acceptance hereof, D. Buyer to obtain and approve a survey and topography study to determine property corners, land area and engineering feasibility of site within one hundred eighty (180) days of acceptance hereof Alternatively, Buyer to ascertain property boundaries and site area to his satisfaction within the same period. E. Buyer to review and approve all of the items in the "Statement of Property Condition" within one hundred eighty (180) days of acceptance hereof, F. Buyer to review and approve the A.I.R. Seller's Mandatory Disclosure Statement or a Professional Report (Natural Hazards) within one hundred eighty (180) days of acceptance hereof. G. Buyer to review and approve title report including all exceptions, easements, right-of-ways, assessments and liens within thirty (30) days of acceptance hereof. Seller shall remove any exceptions which are not acceptable to the Buyer prior to close of escrow. If exception is unable to be removed at a reasonable cost and time by Seller, then Seller or Buyer may cancel contract if Buyer does not accept subject exception. H. Buyer at its option to obtain or ascertain to his satisfaction the ability to obtain all utility connections licenses, or encroachments, including but not limited to water, sewer, electrical, gas, telephone, cable, etc, within one hundred eighty (180) days of acceptance hereof. If any of the above conditions are not satisfied and approved in writing or waived by the Buyer in writing in the times stipulated above, then either Buyer or Seller may terminate this Agreement and the above deposit shall be returned to the Buyer with no further liability to either party hereunder. If Professional Publishing form is used, strike Paragraph 18 in its entirety except "Time is of the Essence of this Agreement". This Addendum is precedent for time periods and conditions over the Professional Publishing printed form. 2. Seller to deliver to Buyer the following existing reports and information within the times stipulated below in order to facilitate Buyer's due diligence: A. Statement of Property Condition completed and signed by Seller and agents within ten (10) days of acceptance hereof, B. A.I.R. Seller's Mandatory Disclosure (Natural Hazards) Statementor atural Hazards Report within fifteen (15) days of acceptance hereof.If 1-1 Buyer's InitWs ,, _ __ Seder's initials `.... Page I of 3 C. All studies, approvals or reports previously obtained by Seller or in the possession of Seller including environmental studies, well reports, code violations -orders, survey of property, appraisals, soils reports, title reports, OCRs, Association budget, archaeological, wetlands, Tiger Salamander, biotic, entitlements, approvals, building permits, design review or use permits within ten (10) days of acceptance hereof. 3. Natural Hazards Disclosure Act, The property which is the subject of this contract is or may be situated in a Special Study Zone as designated under the Alquist-Priolo Geologic Hazard Act, Sections 2621-2625, inclusive, of the California Public Resources Code; and, as such, the construction or development on this property of any structure for human occupancy may be subject to the findings of a geologic report prepared by a geologist registered in the State of California, unless such report is waived by the City or County under the terms of that act. No representations oil the subject are made by the Seller or Agent, and the Buyer should make his own inquiry or investigation: 4. In the event of cancellation of this agreement by Buyer, all studies, plans, specifications, reports, and approvals obtained by Buyer will be turned over to the Seller without cost, 5_ Seller to cooperate in signing all necessary governmental applications required for Buyer to reasonably satisfy the conditions herein. 6. Buyer to pay for escrow fee and title insurance. Seller to pay for transfer tax. Any assessment bond, assumed by Buyer will be a credit to the purchase price. Bonds will be assumed based on the principal amount at the close of escrow. Interest will be prorated to Buyer and Seller based on close date, Taxes, interest on bonds, assessments and loans shall all be prorated as of the close of escrow according to ownership and who made the payments or received rents. 7. In connection with anyFire, earthquake, flood, vandalism, wind or other catastrophe, if any site improvements, utility installations or natural landscaping is destroyed, damaged or made materially defective as a result of such incident prior to close of escrow, Buyer may terminate the transaction by written notice delivered to Seller and all refundable deposits shall be returned to the Buyer, If Buyer does not terminate this agreement and closes the transaction, Buyer shall be entitled to receive any insurance proceeds payable for such damage. 8. Seller shalt permit Buyer's agents, employers, contractors with reasonable notice to enter into and upon the property to inspect property and to conduct, at Buyer's sole expense, surveys, soils, environmental, seismic, wetlands, biotic and other investigations at Buyer's discretion to complete Buyer's due diligence. Buyer agrees to keep property free of liens and claims arising out of said investigations and to defend, indemnify and hold harmless Seller from any claims or actions arising out of Buyer's inspection, conduct of investigations or testing of Seller's property. Buyer agrees to repair and replace and bring back to original condition and pay for any damage arising out of said inspections and expert investigations and give a copy of the reports, studies, inspection reports so obtained during the investigation to the Seller. Buyer's obligation tinder this paragraph shall survive any termination of this Agreement. 9, BUYER'S REPRESENTATIONS: The party executing this agreement on behalf of Buyer has full power to execute, deliver and carry out terms and provisions of this agreement and any of the other agreements, instruments and documents herein required to be made or delivered by Buyer pursuant hereto. Buyer has not made a general assignment for benefit of creditors, filed a voluntary petition of bankruptcy, suffered the filing of creditors, a receiver, attachment or other judicial service of assets and has a sound financial standing in order to make the proposed acquisition. 10. REPRESENTATIONS AND WARRANTIES: Seller is not aware of any uncured violations of any law, rule, regulation; ordinance, code or covenant applicable to the Property. Seller is unaware of any notices from any insurance companies, governmental agencies or other parties with respect to any violations or potential claims against the Property. If any notices or claims are received prior to close of escrow, Seller shall immediately notify Buyer of such claims or notices. --1/ A. Seller has not obligated itself in any manner to sel rc erryarty other than Buyer. Buyerswlnitials >�� Seller's Initials Page 2 of 3 v B. To the best of Seller's knowledge, there are no current condemnation proceedings threatened or pending against the Property. C. There are no unrecorded contracts of any sort affecting any portion of the site. D. The transaction contemplated by this Agreement shall not violate or result in a breach of any other obligation or restrictions of Seller to any other party, E. Seller has no knowledge of any hazardous wastes existing on the Property. F. Seller is not aware of any unusual soils conditions or deed restrictions that would prohibit the development and marketing of the property. 11 Seller shall convey to Buyer at close of escrow fee simple title to the property by grant deed subject to the exceptions set forth in the approval of the title report, Title shall be insured by a CLTA or at Buyer's option, an ALTA title insurance policy, either at Buyer's expense, 12. Close of Escrow to be. the sooner of within five (5) days of Buyer's receipt of Design Review and Use Permit Approval for the development project to be proposed for the subject site or eighteen (18 ) months from the date of this Agreement. 13. Upon Buyer's approval and/or waiver of all Due Diligence items (items 9. A, B, and C of the Purchase Agreement and items LA through LH of this Addendum), Buyer will increase the deposit in Escrow to One Hundred Thousand Dollars ($100,000,00) which deposit will thereafter be non-refundable and should Buyer thereafter fail to Close Escrow per the terms of this Agreement shall be retained by Seller as Liquidated Damages. The terms, covenants and conditions of this Agreement shall be binding upon and shall endure to the benefit of Buyer and Seller and their respective successors, assigns, heirs and legal representatives. All of the terms and provisions of this Agreement shall survive the close of escrow and not merge with the execution and delivery of the grant deed. Buyer and Seller are advised eir respective attorneys review and approve this agreemeno signing, Agreed by: r: V Date: I. I1 -)- t prio t Agreed by: Seller: Date: Page 3 of 3 STANDARD SALE DISCLOSURE ADDENDUM Certified Access Specialist Disclosure Pursuant to California Civil Code Section 1938 the subject property has has not X been inspected by a "Certified Access Specialist". If subject property has been inspected, the property has has not been determined to meet all applicable construction related accessibility standards pursuant to California Civil Code Section 55.53. Notice to Owners, Buyers and Tenants Regarding Hazardous Wastes or Substances and Underground Storage Tanks Comprehensive federal and state laws and regulations have been enacted in the last few years in an effort to develop controls over the use, storage, handling, cleanup, removal and disposal of hazardous wastes or substances. Some of these laws and regulations, such as, for example, the so-called "Super Fund Act", provide for broad liability schemes wherein all owner, tenant or other user of the property may be liable for cleanup costs and damages regardless of fault. Other laws and regulations set standards for the handling of asbestos or establish requirements for the use, modification, abandonment, or closing of underground storage tanks. It is not practical or possible to list all such laws and regulations in this Notice. Therefore, Seller and Buyer; are urged to consult legal counsel to determine their respective rights and liabilities with respect to the issues described in this Notice as well as other aspects of the proposed transaction. If various materials that have been or may be in the future determined to be toxic, hazardous or undesirable, or are going to be used, stored, handled or disposed of on the property, or if the property has or may have underground storage tanks for storage of such hazardous materials, or that such materials may be in the equipment, improvements or soil, it is essential that legat and technical advice be obtained to determine, among other things, what permits and approvals have been or may be required, if any, the estimated costs and expenses associated with the use, storage, handling, cleanup, removal or disposal of the hazardous wastes or substances and what contractual provisions and protection are necessary or desirable. It may also be important to obtain expert assistance for site investigations and building inspections. The past uses of the property may provide valuable infonnation as to the likelihood of hazardous wastes or substances, or underground storage tanks being on the property. The term "hazardous wastes or substances" is used in this Notice in its very broadest sense and includes, but is not limited to, ail those listed under Proposition 65, petroleum base products, paints and solvents, lead, cyanide, DDT, printing inks, acids, pesticides, ammonium compounds, asbestos, PCBs and other chemical products. Hazardous wastes or substances and underground storage tanks may be present on all types of real property. This Notice is, therefore, meant to apply to any transaction involving any type of real property, whether improved or unimproved. You should contact a professional, such as a civil engineer, geologist, industrial hygienist or other persons with experience in these matters to advise you concerning the property. Americans with Disabilities Act (ADA) On July 26, 1990, the federal legislation known as the Americans with Disabilities Act (ADA) was signed into law by President Bush. The purpose of the ADA is to integrate persons with disabilities into the economic and social mainstream of American life. Title III of the ADA applies to Buyers and Sellers of "places of public accommodation" and "commercial facilities", and requires that places of public accommodation undertake "readily achievable" removal of communication and access barriers to the disabled. This requirement of Title Ill of the ADA is effective January 26, 1991 It is important that building owners identify and undertake "readily achievable" removal of any such barriers in the common areas, sidewalks, parking lots and other areas of the building under their control. The Seller and Buyer are responsible for compliance with ADA relating to removal of barriers within the workplace i.e., arrangement of interior furnishings and access within the premises, and any improvements installed by lessor and lessee, Keegan & Coppin Company, Inc. recommends that both parties seek expert advice regarding the implications of the Act as it affects this agreement. Natural Hazards Disclosure Act: "The property which is the subject of this contract may be situated in a Special Study Zone as designated under the Natural Hazards Disclosure Act, inclusive, of the California Public Resources Code; and, as such, the construction or development on this property of any structure for human occupancy may be subject to the findings of a geologic report prepared by a geologist registered in the State of California, unless such report is waived by the City or County under the terms of that act. No representations on the subject are made by the Seller or Agent, and the Buyer should make his own inquiry or investigation". Flood Hazard Area Disclosure: The subject property may be situated in a "Special Flood Hazard Area" as set forth on a Federal Emergency Management Agency (FEMA) "Flood Insurance Rate Map" (FIRM) or "Flood Hazard Boundary Map" (FI -113M). The law provides *that, as a condition of obtaining financing on most structures located in a "Special Floods Hazard Area", lender requires flood insurance where the property or its attachments are security for a loan. Buyer should consult with experts concerning the possible risk of flooding. Toxic Mold Disclosure CPursuant to the Toxic Mold Protection Act of 2011 The Toxic Mold Protection Act of 2001 requires any person who sells, transfers or rents residential, commercial or industrial property to disclose if they have ACTUAL KNOWLEDGE of a mold condition on the property. The law also requires the California Department of Health Services to identify tolerable exposure limits and develop guidelines for toxic mold identification and remediation. Property owners will be required to provide a more detailed disclosure on toxic mold once the Department of Health Services develops and adopts standards for identifying, measuring and remediating toxic mold. The Toxic Mold Protection Act of 2001 does NOT require that a property owner have their property tested for toxic mold. It also does NOT require that an agent investigate a property for toxic mold. Property owners only need to disclose any ACTUAL KNQWL)DGE of a mold condition on their property until the above mentioned guidelines are developed and approved. Buyers are advised to obtain a professional assessment of the mold condition of the subject property prior to the close of escrow. Date: 1-1 ti 1 V/ Seller:. Date: SALE DISCLOSURE AND CONFIRMATION REGARDING REAL ESTATE AGENCY RCLATIONSHIP When you enter into a discussion with a real estate agent regarding a real estate transaction, you should from the outset understated what type of agency relationship or representation you wish to have with. the agent in the transaction, With each specific transaction, you should read the Agency Disclosure and consider how you are being represented. SELLER'S AGENT A Seller's agent under a listing agreement with the Seller acts as the agent for the Seller. A Seller's agent or a subagent of that agent has the following affirmative obligations: To the Seller: A fiduciary duty of utmost care, integrity, honesty and loyalty in dealings with the Seller, To Buyer and Seller: (a) Diligent exercise of reasonable skill and care in performance of the agent's duties. (b) A duty of honest and fair dealing and good faith. (c) A duty to disclose all facts known to the agent materially affecting the value or desirability of the property that are not known to, or within the diligent attention and observation of the parties. An agent is not obligated to reveal to either party any confidential information obtained from the other party which does not involve theaffirmative duties set forth above, BUYER'S AGENT A Selling agent can, with a Buyer's consent, agree to act as agent for the Buyer only. he these situations, the agent is not .fie Seller's agent, even itby agreement the agent may receive compensation for services rendered, either in full or in part from the Seller. An agent acting only for a Buyer Inas the following affirmative obligations: To the Buyer: A fiduciary duty of utmost care, integrity, honesty and loyalty in dealings with the Buyer. To Buyer and Seller: (a) Diligent exercise of reasonable skill and care in performance of the agent's duties, (b) A duty of honest and fair dealing and good faith. (c) A duly to disclose all facts known to the agent materially affecting the value or desirability of the property that are not known to, or within the diligent attention and observation of. the parties. An agent is not obligated to reveal to either party any confidential information obtained from the other party which does not involve the affirmative duties set forth above. AGENT REPRESENTING BOTH SELLER AND BUYER A real estate agent, either acting directly or through one or more associate licensees, can legally be the agent of both the Seller and the Bayer in a transaction, but only with the knowledge and consent of both the Seller and the Buyer. In a dual agency situation, tie agent has the following affirmative obligations to both the Seller and the Buyer: (a) A fiduciary duty of utmost care, integrity, honest and loyalty in the dealings wi0h either Seiler or Buyer. (b) Otter duties to the Seilcr and the Buyer as stated above in their respective sections. In representing both Seller and Buyer, the agent may not, without the express permission of the respective party, disclose to the other party that rte Seller will accept a price less than the listed price or that tie Buyer will pay a price greater than the price offered. The above duties of tie agent in a real estate transaction do not relieve a Seller or Buyer from the responsibility to protect their own interests. You should carefully read all agreements to assure that they adequately express your understanding of the transaction. A real estate agent is a person qualified to advise about real estate. If legal or tax advice is desired, consult a competent professional, Throughout your real property transaction you may receive more than one disclosure form, depending upon the number of agents assisting in (lie transaction. 'I-bc law requires each agent with whom you have more than a casual relationship to present you with this disclosure fort, You should read its contents each time it is presented to you, considering die relationship between you and the real estate agent in your specific transaction. This disclosure form includes the provisions of Sections 2079.13 to 2079.24, inclusive of the Civil Code set forth on the reverse hereof, Read it carefully. We ac a receipt of a copy of this disclosure; Buyer J _llate -es "-,-A )tf Buyer Date Seller Date Agent Date " 1 `� ' (97 Agent Date CONFIRMATION OF AGENCY We authorize die following agency: Prof uity Asset Management COT. is tie agent of: (Check one) Keecan & Coopin Co., Inc. is the agent of: (Check one) X The 13uyor exclusively; or X Jbe Seller exclusively; or The Seller exclusively Both the Buyer and Seller Both tie Euyer and Seller CONFJB" ' ND Al1TIIORiZEDi Buyer {� Date Buyer Agent for BuyerAlan Mins Lie. #01458475 CONFIRiNTED AND AUTHORIZED, Seller Agent for Seller Ken Bizzelt /Sara Wann Lic. #00597970 / 0143714th PROPERTY ADDRESS: APN: 150.020-03'6: Industrial Avenue Petaluma, CA 94952 _ 207213. As used in Section 2079.14 to 2079.24, inclusive, the following terms have the following meanings: (a) "Agent" means a person acting under provisions of'ritle 9 (commencing wilt section 2295) in a said property transaction, arid includes a person who is licensed as a real property transact includes a person who is licensed as a leal estate broker under Chapter (commencing Willi Section 10130) of Part i ofpivision 4 of the Business and Professions code, and under whose tic, listing is executed or all offer to purchase is obtained. (b) "Associate license" means a person who is licensed its a real esulle broker or salesperson under Chapter 3 (commencing with Section 10130) of part I of Division 4 ofthe Business and pi Code and who is either licensed under a broker or has odered into written contract with a broker to act as the broker's agent in eonneelion with acts requiring a real estate liccnsu and to rum the broker's supers iSion in file capacity of an assoeiam licensco, 'Ilse agent in the real properly a rlsnaiion bears responsibility for his or her associate licensees who perform as agents of the agent. When as rssociatc licensee owes a duty to any principal, ob transaction, that duty is mIllivalent to the duly owed to that party by the broker for whom the associate licensee functions, (c) "Buyer inauns a transferee in a real property transaction, and includes a person who exeomcs an offer to purchase real property from a seller through it, aeon(, or Who seeks the services of in more don a casual, transitory, orpielimhtary manner, widb the object of entering into a real property fratisnction. "Buyer" includes vendee or lessee. (d) "Commercial real property" mems all real property in the slate, except single-family residential real property, dwelling units made subject to Chapter 2 (commencing with Section 1940) r mobilahomcs, as deGacd in Stenon 793.3, or rccrealloind vehicles, as defined in Section 799,29. (e)"Dual agent' menus an agent acting, either directly or through an associate lfcoosee, as agent for both ilia sellermid the hiryerin a real property transaction. (f)"Listing agrccmcul" Incurs a contract between au owner ofreal property and an agent, by which (lie agent has been authorized to sell the real properly or to find or obtain a buyer, (g) "Listing agent" means a person who has obtained a listing of real property to net as an aged for compensation. (h) "listing price" is the amount expressed in dollars specified in thelis(ing rorwhich the seller is willing to sell !hc real property through the listing agent. (i) "Onbring price" is ilia amount expressed in dollars specified in an offer to purchase for which the buyer is willing to buy ilia real proporty. 6) "Offer to purchase" means a written contract executed by a buyer acting through a selling agent that becomes the contract for the sate of tlic real property upon acceptance by the seller. (k)"real property" mevis ally estate specified by subdivision (1) or (2) of Section 761 in property that constitutes or is improved with one to four dwelling units, arty commercial real property leasehold is these types of property exceeding one year's duration, and mobilehomes, when Offered for sate or sold through an agent pursuant 16 cite authority contained in Section 10131.6 of Business of Profcssfous Code, (1)'72ca1 property transaction" uroans a transaction for the sale ot'real property in which an agent is employed by one or more ofthe principals to act in that transaction, and includes a listing offer to purchase, (in) "Sell," "sale" or "sold" tofcrs loss tmnsadiou for th0 traiisfer of real property from the seller to ilia buyer, and includes exchanges ofreal property hehveen the seller and buyer, transoctiol creation of a real propcdy sales conlmcl within rhe meaning of Section 2985, and transactions for the creation of leasehold exceeding one year's duration. (n) "Seller" mems the transferor in a real property transaction, and includes an owner who lists real property with an agmtf, whether or not a transfer results, of who receives an offer to purclu property or which he or she is Ilia owner from an agent on behalf of another. "Soifer' includes both a vendor and a lessor. (0) "Selling agent" means a listing agent who acts alone, or ail agent who acts in cooperation with a listing ag0nt, and who sells or finds grid obtains a buyer for the real property, or an again v locates property for a buyer or who finds a buyer for a property for which no listing exists and prosents tm offer to purchase to the scaler. (p)':Subagonf' meaus a person to whom nrr agent delegates agency powers as provided in Article 5(comnencing with Seclion 2349) of Cimpter I of if le 9. However, "subagent" does not fact associate licensee who is acting under thesupuvisi0n oras agent in real property transaction: 7079.14, Listing agents and selling ngems shall provide the seller and buyer in a real property transaction with a copy critic disclosure from specified in Seclion 2079.16, mrd axecpl as provi subdivision (c), slm8 obtain a signed acknowledgement orrecoipl from than seller or buyer, except as provided in this section or Section 2o79.15, as follows: (a) The lisihng agent, !rally, shall provide the disclosure form to the seller prior to entering into the listing agremucal. (b)The selling agent shall provide the disclosure form to the seller as soon as prauicablc prior to presenting the seller with all offer to purchase, tildes tine selling agent previously provided Ill. with a copy of the disclosure form pursuant to smbdivisiou (a). (e) Where lire selling agent does not deal on a face-to•face basis with the seller, the disclosure form prepared by the selling agent may be furnished to the seller (And acknowledgemcm of rete obtained for lite selling agent from the sellar) by the listing agent, or the setting agent may deliver the disclosure fonn by cediliod mail addressed to the seller as his or her last known address, case no signed acknowledgatncnt of this receipt is required. (d) lire selling agent shall provide the disclosure form to Ilia buyer as soon as practicable prior to execution of the buyer's offer to purchase, except that if the offer to purchase is lie( prepared selling agent, the selling agent shall present ilia disclosure form to the buyer not later that the next business day after the selling agent receives the offer to purchase from Ore buyer. 2079.151n any circumstance in which the setter or buyer refuses to sign an acknowledgement or receipt pursuant to Section 2079,14,1110 agent, or an assoclato licensee aciing for the agent, sl fords, sign, and date a written dcclnmlion of the facts of the refusal. 2079.17. (a) As soon as practicable. the selling agent shall disclose to the buyerand seller whether the selling agent is acting fn the real properly transaction exclusively as the buyer's agent, exclusively as the seller's agent, or as a dual agent representing both the buyer and the seller. This relationship shall be continued in ilia contract to purchase and sell mal property or fn a sepal writing executed or acknowledged by the seller, the buyer, and the selling agent prior to or coincident with execution of that contract by the buyer and the seller, respectively. (b) As soon as pnrcticable, the listing agent shall disclose to ilia scllcr whoibcrthe listing agent is acting in div real property transaction exclusively as the seller's agent, or as a dual agent rcpt both the braver And seller. This rclolionshfp shall be confirmed in ilia contract to purchase and sell real property or in a separ le writing executed or acknowledged by the seller and Ilia listing r prior to our coincident with the execution of that contract by the seller. (c) The confrmintiol required by subdivisions (a) and (b) shall be in the follow ng foot: �rdtbcOCyv`i�r++crci�t.� _ is the agent of _�r�fh __ bs lbe neem of (Nome of Listing Agent) (Nano efSelling Agc t iCmol (he same ns tide Listing Agent) (Cheek one) the seller exclusively; or (Check ate) O fjej the buyer cxelusivaly; or ( ) boil) the buyer and scllct. O the seller exclusively; or ( } both Clic buyer mid seller (d) ilia disclosures and confirmation r0quired by this section shall be in addition to ilia disclosure required by Section 2079.14. 2079.18. No selling agent fn a real properly Imnsaetion may act as alt agent for ilia buyer only, when ilia selling agent is also acting as One listing agent in the teamacrion. 2079. 19, The payment of compensation or the obligation to pay compensation to un agent by the seller or buyer is not necessarily determinative ora particular agency relationship between an and the seller or buyer. A listing agent and a selling agent may agree to share any compensation or commission paid, or any right to Any compensation or commission for which an obligation n ilia result of a real estate hansactiou, and the tarns orally such agreement shall not necessarily be determinative ora particular relationship, 2079,20. Nothing in Ihfs article prevents and agent from selecting, as a condition of the agent's eniploy,nenl, a specific Conn oragcuoy relationship not specifically prohibited by this article if requirements orSeclion 2079.14 and Section 2079.17 are complied with. 2079.21. A dual agent shall not disclose tit buyer ilial ilia softer is willing to sell tine property as a price Icss than the listing price, without tiro express written consort oflhe suller. A dual agent disclose to ilia seller that the buyer is willing to pay a price greater that ilia offering price, without the express written consent of the buyer, This section docs; not alter in .y any the duty orreeponsibdity ora dual agent to any principal with respccl to confidential Information arbor than price. ' 2079.22 Nothing in this article procludes a listing agent from also being aselling agent, and Ilse combination of these functions in one agent docs nor, of itself, make that agent n duct agent. 2079.23. (a) A coetract bztwceu the principal and agent may he modified or altered to drange the agency relatio»ship at any dime before the perConnanec of the act which is the object ofthe a with the written conscut of the parties In the agency relationship, (b) A lender or an auction company miained by a Icndcr to control aspects ora trnusnctlon of real proporty subject to this put, including validating the sales price, shall not require, as a conditf mceivfng the lender's approval of the transaction, the hotncownlor or listing agent to defend or indemnify the lender or auction company from any liability alleged to result from the actions oft Icndcr or auction company. Any clause, prevision, covenant, or agreement purporting to unposc an obligation to defend or indemnify a lender or an auction connpany in violation of lbfs subdi, against public policy, void, and ancuforccable. 2079,24, Nolhhng in this article shall be consinbed to either diminish die duty of disclosmo owed buycs and sellers, by agents and their associate licensees, subagents, nod employees ham liab: their conduct in connections wnh nets governed by this article or forany breach ora fiduciary duty ora duty of disctosire.