2019-616508 DOC# 2019-0616508
RECORDING REQUESTED BY: 1 1111111111111111111111111 111111 11111 11111 lllllIIIII lIIIIIIII IIII Illl .
First American Title.-' Dec 31, 2019 02:34 PM.
Homebuilder Services Division OFFICIAL RECORDS
Ernest J. Dronenburg,.Jr.,
SAN DIEGO COUNTY'RECORDER
AND VaIEN RECORDED FEES: $74.00 .(SB2 Atkins: $0.00)
MAIL TO:
PAGES:21
City-of,Encinitas
City Clerk's Office
505 S.Vulcan Avenue
Encinitas, CA 92024
Deed of Trust
(Please fill in document title(s)on this line)
Exempt from fee per GC27388.1-due to being recorded in connection with concurrent transfer that
is subject to_the imposition of documentary'transfer tax,or,
2 . ❑ Exempt from fee per GC27388.1 due to being recorded in connection with a transfer.that was
subject to documentary transfer tax which was paid on document recorded previously on
(date*)as document number of Official.
Records,or,
3 ❑ Exempt from fee per GC27388.1 due to the maximum fees being paid on documents in this
transaction,or,
4 ❑ Exempt from fee per GC27388.1 due to the maximum fees having been paid on documents in the
transaction(s)recorded previously.on (date*)as document number(s)
of Official Records,or,
5 ❑ Exempt from fee per GC27388.1,document transfers real property that is a residential dwelling to
an owner-occupier,or,document is recorded in connection with concurrent transfer that is a
residential dwelling to an owner-occupier,or,
6 ❑ Exempt from fee per GC27388.1.due to it being recorded in connection with a transfer of real
property that is a residential dwelling to an owner-occupier.The recorded document transferring
the dwelling to the owner-occupier was recorded on (date*)as
document number(s)
7 ❑ Exempt fromfee per GC27388:1 due to being executed or recorded by the federal government in
accordance with the Uniform Federal Lien Registration Act,by the state,or any county,
municipalityor other political subdivision of the state,or,
8 .❑ Exempt from the fee per GC 27388.1(a)(1);Not related to real property,or,
9 ❑ Exempt from fee under GC27388.1 for the following reasons:
THIS PAGE AD_ DEDTOPROVIDESENATEBIL L290VIPAONINFORMATION
(Additional'recordingfeeapplles)
Rev 5/18 *The Prior Recording Reference must have been recorded within the last 60 days and is subject to review
f
RECORDING REQUESTED BY:
First American Title -
Homebuilder Services Division
AND WHEN RECORDED
MAIL TO:
City of Encinitas
City Clerk's Office
505 S. Vulcan Avenue
Encinitas, CA 92024
Deed of Trust
(Please fill in documenttitle(s)on this line)
1 EJ] Exempt from fee per GC27388.1 due to being recorded in connection with concurrent transfer that
is subject to the imposition of documentary transfer tax,or,
2 ❑ Exempt from fee per GC27388.1 due to being recorded in connection with a transfer that was
subject to documentary transfer tax which was paid on document recorded previously on
(date*)as document number of Official
Records,or,
3 ❑ Exempt from fee per GC27388.1 due to the maximum fees being paid on documents in this
transaction,or,
4 ❑ Exempt from fee per GC27388.1 due to the maximum fees having been paid on documents in the
transaction(s)recorded previously on (date*)as document number(s)
of Official Records,or,
5 ❑ Exempt from fee per GC27388.1,document transfers real property that is a residential dwelling to
an owner-occupier,or,document is recorded in connection with concurrent transfer that is a
residential dwelling to an owner-occupier,or,
6 ❑ Exempt from fee per GC27388.1 due to it being recorded in connection with a transfer of real
property that is a residential dwelling to an owner-occupier.The recorded document transferring
the dwelling to the owner-occupier was recorded on (date*)as
document number(s)
7 ❑ Exempt from fee per GC27388.1 due to being executed or recorded by the federal government in
accordance with the Uniform Federal Lien Registration Act,by the state,or any county,
municipality or other political subdivision of the state,or,
8 ❑ Exempt from the fee per GC 27388.1(a) (1); Not related to real property,or,
9 ❑ Exempt from fee under GC27388.1 for the following reasons:
THIS PAGE ADD E D TO PROVIDE SENATE BILL2 EXEMPTION INFORMATION
(Additional recordingfeeapplies)
Rev 5/18 *The Prior Recording Reference must have been recorded within the last 60 days and is subject to review
Recording Requested By:
First American Title Company
Homebuilder Services Division.
NO FEE FOR RECORDING
PURSUANT TO GOV. CODE SECTION
27383
Recording Requested By:
City of Encinitas
Development Services Department
505 S. Vulcan Avenue
Encinitas, CA 92024
And When Recorded Mail To:
City of Encinitas
City Clerk's Office
505 S. Vulcan Avenue
Encinitas;CA 92024
APN: 256-123-06-00
DEED OF TRUST
THIS DEED OF TRUST is made this a2� day of 1cmy,)ztc, 20A,
among the Trustor, Eliahu Eilfort and Chaya Eilfort, husband and wife as community
property (herein "Borrower"), and First American Title Company (herein "Trustee"), and the
Beneficiary, CITY OF ENCINITAS (herein "CITY"), whose address is 505 S. Vulcan
Avenue, Encinitas, California 92024.
i
BORROWER, in consideration of the indebtedness herein recited and the
trust herein created, irrevocably grants and conveys to Trustee, in trust, with power of sale,
the following described property located in the County of San Diego, State of California:
Exhibit "A" attached hereto and incorporated herein by this reference
which has the address 735 Adelaide Circle, Encinitas, California 92024 (herein'"Property
Address");
TOGETHER with all the improvements now and hereafter erected on the
Property, and all easements, rights, appurtenances and rents (subject, however, to the
rights and authorities given herein to CITY to collect and apply such rents), all of which
shall be deemed to be and remain part of the property covered by this Deed of Trust; and
all of the foregoing, together with said property (or the leasehold estate if this Deed of
Trust is on a leasehold) are hereinafter referred to as the "Property";
TO SECURE to CITY the repayment of the indebtedness evidenced by
Borrower's Promissory Note dated , 20., and Note Rider, and extensions
and renewals thereof (herein collectively referred to as the "Note"), in the principal sum of
one million, fifty-seven thousand, fifty-three U.S. Dollars and Seven Cents ($1,057,053.07)
with interest thereon, fully deferred with the total indebtedness, if not sooner paid, due and
payable upon.default by Borrower, or when a Prohibited Transfer occurs as defined in the
Deed of Trust. The Note will become null and void on the date which is fifty-five (55) years
after the first day of the month after the date the Property is occupied by a qualified
purchaser if Borrower has not defaulted or made a Prohibited Transfer of the Property, or
any portion thereof, CITY has received the payment of all other-sums, with interest
thereon, advanced in accordance herewith to protect the security of this Deed of Trust;
and CITY has received the full performance of the covenants and agreements of Borrower
contained in the Deed of Trust (the "Expiration Date"). For purposes of the Note and this
Deed of Trust, such date of occupancy shall be deemed to be the date this Deed of Trust
is recorded. For a replacement deed of trust following an assumption, the Expiration Date
of that replacement deed of trust shall be the same day as the Expiration Date.as defined
in this Deed of Trust.
Borrower covenants that Borrower is lawfully seized of the estate hereby
conveyed and has the right to grant and convey the Property, and that the Property is
unencumbered except for encumbrances of record. Borrower covenants that Borrower
warrants and will defend generally the title to the Property against all claims and demands,
subject to encumbrances of record.
UNIFORM COVENANTS
Borrower and CITY covenant and agrees as follows:
1. Payment of Principal and Interest. Borrower shall promptly pay
when due the principal and interest indebtedness evidenced by the Note.
The principal loan amount secured in the Deed of Trust herein, evidenced by
the Note, is calculated by determining the difference between the Affordable Housing
Price, and Market Sales Price, as such terms are defined in paragraph 17 in this Deed of
Trust(herein "Subsidy").
2. Payment of Taxes and Insurance. To protect the security of the
Deed of Trust, Trustor agrees to pay, at least ten (10)-days before delinquency, all taxes
and assessments affecting said property, including assessments on appurtenant water
stock; when due, all encumbrances, charges and liens, with interest, on said property or
any part thereof, which appear to. be prior or superior hereto; and all costs, fees and
expenses of this Trust.
Should Trustor fail to make any payment or to do any act as herein
provided, then Beneficiary or Trustee, without obligation to do so and without notice to or
demand upon Trustor and without releasing Trustor from any obligation hereof, may make
Page 2
or do the same in such manner and to such extent as either may deem necessary to
protect the security hereof, Beneficiary or Trustee .being authorized to enter upon said
property for such purposes; appear in and defend any action or proceeding purporting to
affect the security hereof or the rights or powers of Beneficiary or Trustee; pay, purchase,
contest or compromise any encumbrance, charge or lien which in the judgment of either
appears to be prior or superior hereto; and, in exercising any such powers, pay necessary
expenses, employ counsel and pay his reasonable fees.
3. Application 'of Payments. Unless applicable law provides
otherwise, all payments received by CITY under the Note shall be applied by CITY first
in payment of amounts advanced by CITY to Borrower, then to interest payable on the
Note, and then to the principal of the Note.
4. Prior Mortgages and Deeds of Trust; Charges, Liens. Borrower
shall perform all of Borrower's obligations under any mortgage, deed of trust or other
security agreement with a lien which' has priority over this Deed of Trust, including
Borrower's covenants to make payments when due. Borrower shall pay or cause to be
paid all taxes, assessments and other charges, fines and impositions attributable to the
Property which may attain a priority over this Deed of Trust, and leasehold payments, if
any. 1
5. Hazard Insurance. Borrower shall keep the improvement(s) now
existing or hereinafter erected on the Property insured against loss by fire, hazards
included within the terms "extended coverage", and such other hazards as CITY may .
require and in such amounts and for such periods as CITY may require.
The insurance carrier providing the insurance shall be chosen by
Borrower subject to approval by CITY, provided that such approval will not be
unreasonably withheld. All insurance policies and renewals thereof shall be in a form
acceptable to CITY and shall include a standard mortgage clause in favor of and in a form
acceptable to CITY. CITY has the right to hold the policies and renewals thereof, subject
to the terms of any mortgage, deed of trust or other security agreement with a lien which
has priority over this Deed of Trust.
In the event of loss, Borrower shall give prompt notice to the
insurance carrier and CITY. CITY may make proof of loss if not made promptly by
Borrower.
If Property is abandoned by Borrower, or if Borrower fails to respond
to CITY within thirty (30) days from the date notice is mailed by CITY to Borrower that the
insurance carrier offers to settle a claim for insurance benefits, CITY is authorized to.
collect and apply the insurance proceeds at CITY's option either to restoration or repair of
the Property or to the sums secured by this Deed of Trust.
6. Preservation and Maintenance of Property. Borrower will keep the
Property in good repair and shall not commit waste or permit impairment or deterioration of
Page 3
the Property. Borrower shall,perform all of Borrower's obligations under the declaration of
covenants, conditions and restrictions.
7. Protection of CITY Security. If Borrower fails to perform the
covenants and agreements contained in this Deed of Trust, or if any action or proceeding
is commenced which materially affects CITY's interest in the Property, the CITY, at CITY's
option, upon notice to Borrower, may make such appearances, disburse such sums
including reasonable attorneys' fees, and take such action as is necessary to protect
CITY's interest. If CITY's required mortgage insurance is a condition of making the loan
secured by this Deed of Trust, Borrower shall pay the premiums required to maintain such
insurance in effect until such time as the requirement for such insurance terminates in
accordance with Borrower's and CITY's written agreement or applicable law.
Any amounts disbursed by CITY pursuant to this paragraph, with
interest thereon, at the Note rate, will become additional indebtedness of Borrower
secured by this Deed of Trust. Unless Borrower and CITY agree to other terms of
payment, such amounts will be payable upon notice from CITY to Borrower requesting
payment. thereof. Nothing contained in this paragraph will require CITY to incur any
expense or take any action hereunder.
8. Inspection. CITY may make or cause to be made reasonable
entries upon and inspections of the Property, provided that CITY will give'the Borrower
notice prior to any such inspection, specifying reasonable cause therefor related to CITY's
interest in the property.
9. Condemnation. The proceeds of any award of claim for damages,
direct or consequential, in connection with any condemnation or other taking of the
Property, or part thereof, or for conveyance in lieu of condemnation, are hereby assigned
and shall be paid to CITY subject to the terms of any mortgage, deed.of trust or other
security agreement with a lien which has priority over this Deed of Trust.
10. Borrower Not Released; Forbearance by CITY Not a Waiver.
Extension of the time.for payment or modification of amortization of the sums secured by
this Deed of Trust granted by CITY to any successor in interest of Borrower shall not
operate to release, in any manner, the liability of the original Borrower and Borrower's
successors in interest. CITY shall not be required to commence proceedings against such
successor or refuse to extend time for payment or otherwise modify amortization of the
sums secured by this Deed of Trust'by reason of any demand made by the original
Borrower and Borrower's successors in interest. Any forbearance by CITY in exercising
any right or remedy hereunder, or otherwise afforded by applicable .law, shall not be a
waiver of or preclude the exercise of any such right or remedy.
11. Successors and Assigns Bound, Joint and Several Liability; Co-
Signors. The covenants and agreements herein contained shall bind, and the rights
hereunder shall inure to, the respective successors and assigns of CITY and Borrower,
subject to the provisions of paragraph 17 hereof. All covenants and agreements of
Page 4
i
Borrower shall be joint and several. Any Borrower who co-signs this Deed of Trust, but
does not execute the Note:
(a) is co-signing this Deed of Trust only to grant and convey that
Borrower's interest in the Property to Trustee under the terms of this Deed of
Trust;
(b) is not personally liable on the Note or under this Deed of Trust; and,
(c) agrees that CITY and any other Borrower hereunder may agree to
extend, modify, forbear or make any other accommodation with.regard to the
terms of this Deed of Trust or the Note, without that Borrower's consent and
without releasing that Borrower or modifying this Deed of Trust as to that
Borrower's interest in the property.
12. Notice. Except for any.notice required under applicable law to be
given in another manner:
(a) any notice to Borrower provided for in this Deed of Trust shall be
given by delivering it or by mailing such notice by certified mail, addressed to
Borrower at the Property address or such other address as Borrower may
designate by notice to CITY as provided herein; and, .
(b) any notice to CITY will be given by certified mail, return receipt
requested, to CITY's address stated herein or to such other address as CITY
may designate by notice to Borrower as provided herein.
Any Notice provided for in this Deed of Trust shall be deemed to have been given to
Borrower or CITY when given in the manner designated herein.
13. Governing Law, Severability. The state and local laws applicable to
this Deed of Trust shall be the laws of the jurisdiction in which the.Property is located. The
foregoing sentence shall not limit the applicability of federal law to this Deed of Trust. In
the event that any provision or clause of this Deed of Trust or the Note conflicts with
applicable law, such conflict shall not affect other provisions of this Deed of Trust or the
Note which can be given effect without the conflicting provision and, to this end, the
provisions of this Deed of Trust and the Note are declared to be severable . As used
herein, "costs", "expenses" and "attorneys' fees include all sums to the extent not
prohibited by applicable law or limited herein.
14. Borrower's Copy. Borrower shall be furnished a conformed copy of.
the Note and this Deed of Trust at the time of execution or after recordation hereof-
15. Notice to CITY. Borrower agrees that it will.give the CITY notice of
any prospective transfer, sale, or conveyance not less than forty five (45) days before the
Page 5
proposed sale, transfer, or conveyance by personal delivery of a notice at the address set
forth for the CITY on Page 1 of this Deed of Trust. Time is of the essence..
16. Lease of Property Prohibited. During the term of the affordability
restrictions as set forth in paragraph 17 of this Deed of Trust, the Borrower shall not rent or
sublet the Property, or any part thereof, to any person and/or entity. Leasing of the
Property shall be deemed a Prohibited Transfer of the Property, within the meaning of
paragraph 18, and shall trigger the right of the CITY to foreclose and/or exercise its First
.`Right of Refusal. Provided however, the CITY may grant temporary waivers of the
requirement in the event of hardship affecting Borrower, such as illness in the family,
military deployment or re-assignment, need to relocate to obtain employment, and the like.
17. Transfer, Conveyance of Property Restricted for Fifty-Five (55)
Years. The sale, transfer and/or conveyance of the Property is restricted as follows:
If Borrower sells, transfers or conveys the Property prior to the
Expiration Date, then sale, conveyance and/or transfer shall be subject to the following:
(a) The Property may only be sold, transferred or conveyed to a
qualified VERY LOW INCOME HOUSEHOLD..
(b) The Property must be used only as the principal residence of
the subsequent purchaser during the time of.ownership. Borrower shall
make a good faith effort.to obtain a qualified purchaser residing in the City.of.
Encinitas, prior to considering other qualified purchasers. Such effort shall
include, but not limited to, local public advertising, listing in local real estate
publications, and CITY suggested marketing. The CITY shall determine if a
"good faith" effort has been performed. The CITY shall not unreasonably
withhold its approval.
(c) The sale price to the subsequent purchaser must be at a
price that is "affordable to the subsequent purchaser(s)". "Affordable to
the subsequent purchaser(s)" is .determined through the calculation
described below.
i. The maximum affordable sales price for the Property shall be
calculated in accordance with California Health and Safety Code
Section §50052.5 and Title 25 of the California Code of .
Regulations, Section 6920 (or successor provision), and, in
accordance with these provisions, shall result in housing cost that
does not exceed 30 percent of 50 percent of. AREA MEDIAN
INCOME, adjusted for assumed household size. "AREA MEDIAN
INCOME" is the median income for to San Diego County as
published annually by the Department of Housing and Community
Development under Title 25 of the California Code of Regulations,
Page 6
Section 6932 (or successor provision), adjusted for actual
household size
ii. The calculation shall include a five percent down payment.
iii. The calculation shall include an interest rate which is based on
the current Freddie Mac Monthly Average Commitment Rate on 30-
Year Fixed-Rate Mortgages.
iv. The calculation shall include reasonable housing costs, which
includes, but not limited to, principal and interest, property taxes and
assessments, property insurance; property maintenance and repairs,
Homeowners' Association fees, additional district fees (if applicable),
and an allowance for utilities based on the current Utility Allowance
Schedule, published by the Encinitas Housing Authority
v. Actual financing to be obtained by any prospective homebuyer
shall be a fixed rate loan fully amortized over thirty-years.
(d) In the event that that Borrower is unable to find, despite good
faith efforts to' do so, a qualified purchaser to purchase the Property,
Borrower may sell the Property to a person other than a qualified purchaser
by first offering to sell the Property to the CITY for a purchase price equal to
that determined through the calculation described in Section 17(c) above.
The CITY shall accept or reject the offer to sell the Property to the CITY
within thirty (30) days of the date of receipt of the offer to sell. In the event
that the CITY declines to purchase the Property, Borrower may proceed to
market and sell the Property to a non-qualified buyer above if the Property
will be continuously rented to a qualifying VERY LOW INCOME
HOUSEHOLD at an affordable rental price as calculated in Section 17(e)
below. At the time of said sale, the subsequent owner shall execute a new
Regulatory Agreement with the CITY.
Upon a showing of hardship by the Borrower to the CITY in writing, the CITY
may waive any one or combination of the following: the resale restrictions,
the Borrower's obligation to sell to the CITY.
(e) The maximum monthly rent of Property shall be calculated in
accordance with California Health and Safety. Code Section §50053 and
Title 25 of the California Code of Regulations, Section 6918 (or successor
provision), and, in accordance with these provisions, shall result in housing
cost that does .not exceed 30 percent of 50 percent of AREA MEDIAN
INCOME, adjusted for assumed household size.
L No additional fees or charges shall be assessed to the
TENANT HOUSEHOLD in excess of the affordable rent.
Page 7
ii. An allowance for tenant-paid utilities shall be deducted from
the maximum affordable rent. The OWNER shall only use the most
current Utility Allowance Schedule, published by the Encinitas
Housing Authority.
(f) A transfer of the Property in accordance with the terms hereof
must be accompanied by a recordable assignment and assumption of the
Regulatory Agreement executed by the transferee.
(g) The affordability requirement shall remain in effect until the
Expiration Date. This requirement shall remain in full force and effect
against all subsequent purchasers until the Expiration Date. This restriction
shall also apply to sales of the Property from the subsequent purchaser to
other purchaser(s) until the Expiration Date.
(h) If. the Borrower fails, refuses or is unable to convey, sell, or
transfer the Property to a person or persons meeting the requirements of
paragraphs 16 and 17(a) through 17(c), inclusive, before the Expiration
Date, but nevertheless conveys, sells or transfers the Property in violation of
paragraph 18 hereof, then such transfer shall be deemed a Prohibited
Transfer as defined in paragraph 18 hereof.
These provisions of paragraph;17 shall bind the heirs, successors and assigns of
the Borrower.
18. Prohibited Transfer. If Borrower sells, agrees to sell, conveys,
rents, refinances, and/or transfers the Property in violation of the terms of paragraph 2 and
5 of the Note, or paragraphs 16, 17 or 30 of this Deed of Trust (a "Prohibited Transfer"),
then CITY may, at its option, in addition to any and all other remedies available to it,
require immediate payment in full of all sums secured by this Deed of Trust. In the
instance of a Prohibited Transfer, the Transferor shall pay to the CITY the amount of this
Deed of Trust, including any interest, as described in the Note.
As an alternative, CITY may, at its option, purchase the Property for a
purchase price equal to the highest purchase price at which a qualified purchaser could
qualify to purchase:the Property at an Affordable Housing Cost. However, these options
shall not be exercised by CITY if such exercise is prohibited by federal law as of the date
of the Deed of Trust or if the CITY has executed a separate written waiver of these
options.
If CITY exercises any of these options, CITY shall give Borrower
Notice of Acceleration or, in the alternative, Notice of Exercise of First Right of Refusal
Option. ' The notice shall provide'a period of riot less than thirty (30) days from the-date
that the notice is delivered or mailed within which Borrower must pay all sums secured by
the Deed of Trust or must enter into an escrow to convey the Property to CITY, depending
Page 8
upon the option exercised by CITY. If Borrower fails to pay these sums or enter into an
escrow prior to the expiration of this period, CITY may invoke any remedies permitted by
the Deed of Trust without further notice or demand on Borrower. The escrow
contemplated by this paragraph 18 must close not more than ninety (90) days after CITY
receives notice of such sale, agreement to sell, conveyance, rental or transfer of the
Property in violation hereof.
NON-UNIFORM COVENANTS
Borrower and CITY further covenant and agree as follows:
19. Acceleration, Remedies. Upon Borrower's breach of any covenant
or agreement of Borrower in this Deed of Trust, including the covenants to pay when due
any sums secured by this Deed of Trust, and those contained in paragraphs 16,17 and 18
hereof, CITY, prior to acceleration, shall give notice to Borrower as provided in paragraph
12 hereof specifying:
(a) the breach;
(b) the action required to cure such breach;
(c) a date, not less than ten (10) days from the date the notice is
mailed to Borrower, by which such breach-must be cured; and,
(d) that failure to cure such breach on or before the date specified
in the notice may result in acceleration of the sums secured by this Deed of
Trust and sale of the Property.
The notice shall further inform Borrower of the right to reinstate after
acceleration and the right to bring a court action to assert the nonexistence of a default or
any other defense of Borrower to acceleration and sale. If the breach is not cured on or
before the date specified in the notice, CITY, at CITY's option, may declare all of the sums
secured by this Deed of Trust to be immediately due and payable without further demand
and may invoke the power of sale and any other remedies permitted by applicable law.
CITY shall be entitled to collect all reasonable costs and expenses incurred in pursuing the
remedies provided in this paragraph 19, including, but not limited to, reasonable attorneys'
fees.
If CITY invokes power of sale, CITY shall execute or cause Trustee to.
execute a written notice of the occurrence of an event of default and of CITY's election'to
cause the Property to be sold and shall cause such notice to be recorded in each county in
which the Property or some part thereof is located. CITY or Trustee shall mail copies of
such notice in the manner prescribed by applicable law. Trustee shall give public notice of
sale to the persons and in the manner prescribed by law. After the lapse of such time as
may be required by applicable law, Trustee, without demand on Borrower, shall sell the
Property at public auction to the highest bidder at the time and place and under the terms
Page 9
designated in the notice of sale in one or more parcels and in such order as Trustee may
determine. Trustee may postpone sale of all or any parcel of the Property by public
announcement at the time and place'of any previously scheduled sale. CITY or CITY's
designee may,purchase the Property at any sale.
Trustee shall deliver to the purchaser Trustee's deed conveying the
Property so sold without any covenant or warranty, expressed or implied. The recitals in
the Trustee's deed shall be rp ima facie evidence of the truth of the statements made
therein. Trustee shall apply the proceeds of the sale in the following order:
(1) to all reasonable costs and expenses of the sale, including, but
not limited to, reasonable Trustee's and attorneys' fees and
costs of title evidence;
(2) to all sums secured by this Deed of Trust; and,
(3) the excess, if any, to the person or persons legally entitled
thereto.
20. Borrower's Right to Reinstate. Notwithstanding CITY's
acceleration of the sums secured by this Deed of Trust due to Borrower's breach,
Borrower shall have the right to have any proceedings begun by CITY to enforce this Deed
of Trust discontinued at any time prior to five (5) days before the sale of the Property
pursuant to the power of sale contained in this Deed of Trust or at any time prior to entry of
a judgment enforcing this Deed of Trust if:
(a) Borrower pays CITY all sums which would be then due under
this Deed of Trust and the Note had no acceleration occurred;
' I
(b) Borrower cures all breaches of any other covenants or
agreements of Borrower contained in this Deed of Trust;
(c) Borrower pays all reasonable expenses incurred by CITY and
Trustee in enforcing the covenants and-agreements of Borrower continued .
in this Deed of Trust and in enforcing Trustee's remedies as provided in
paragraph 19 hereof, including, but not limited to, reasonable attorneys'
fees; and,
(d) Borrower takes such action as CITY may reasonably require
to assure that the lien of this Deed of Trust, CITY's interest in the Property
and Borrower's obligation to pay the sums secured by this Deed of Trust
shall continue unimpaired.
Upon such payment and cure by Borrower, this Deed of Trust and the
obligations secured hereby shall remain in full force and effect as if no acceleration had
occurred.
Page 10
21. Assignment of Rents; Appointment of Receiver; CITY in
.Possession. As additional security hereunder, Borrower hereby assigns to CITY the
rents of the Property, provided that Borrower shall, prior to acceleration under paragraph
19 hereof or abandonment of the Property, have the. right to collect and retain such rents
as they become due and payable.
Upon acceleration under paragraph 19 hereof or abandonment of the
Property, CITY, in person, by agent or by judicially appointed receiver shall be entitled to,
enter upon, take possession of and manage the Property and to collect the rents of the
Property including.those past due. All rents collected by CITY or the receiver shall be
applied first to payment of the cost of management of the Property and collection or rents,
including, but not limited to, receiver's fees, premiums on receiver's bonds and reasonable
attorneys' fees, and then to the sums secured by this Deed of Trust. CITY and the
receiver shall be liable to account only for those rents actually received.
22. Reconveyance. Upon payment of all sums secured by this Deed of
Trust, CITY shall request Trustee to reconvey the Property and will surrender this Deed of
Trust and all Notes evidencing indebtedness secured by this Deed of Trust to Trustee.
Trustee shall reconvey the.Property without warranty and.without.charge to the person or
persons legally entitled thereto. Such person or persons shall pay all costs of recordation,
if any.
23. Substitute Trustee. CITY, at CITY's option, may from time to time
appoint a successor trustee to any Trustee appointment hereunder by an instrument
executed and acknowledged.by CITY and recorded in the office of the Recorder of the
county where the Property is located. The instrument shall contain the name of the
original lender, Trustee and Borrower, the book and page where this instrument is
recorded, and the name and address of the successor trustee. The successor trustee
shall, without conveyance of.the Property, succeed to all the title, power and duties
conferred upon the Trustee herein and by applicable law. This procedure for substitution
of trustee shall govern to the exclusion of all other provisions for substitution.
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24. Request for Notices. Borrower requests that copies of the notice of
sale be sent to Borrower's address which is the Property Address.
25. Statement of Obligation. CITY may charge a fee not to exceed
Sixty Dollars ($60:00) for furnishing the statement of obligation as provided by Section
2943 of the Civil Code of California.
26. Deed of Trust Rider. The Deed of Trust Rider executed by
Borrower is attached hereto and made part of this Deed of Trust.
27: Covenants. Conditions and Restrictions. If the Property is subject
to Covenants, Conditions and . Restrictions [Affordability Restrictions] ("Affordability
Restrictions") between CITY and Borrower, which are not attached hereto, . Borrower
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acknowledges receipt thereof and agrees, for itself, its heirs, successors and assigns to be
bound by the same.
28. Warranties of Borrower. Borrower warrants to CITY as follows:
(a) Borrower certifies that they will occupy the Property as owner-
occupant and principal residence; and that the Borrower does not
own or have an interest in any real property.
29. Subordinate to Senior Deed of Trust. This Deed of Trust is
subordinate to any deed of trust or mortgage ("First Mortgage"), if any, on the Property
made by or held by an institutional lender or investor ("First Lender Loan").
30. Refinance of First Lender Loan. The outstanding principal on the
Note shall not be due upon prepayment and refinancing of the First Lender Loan; and this
Deed of Trust shall be subordinated to the refinanced First Lender Loan by way of a
Subordination Agreement, provided that (i) such refinancing is approved by the. CITY, (ii)
the amount refinanced does not exceed the outstanding principal balance of the First
Mortgage at the time of refinance plus reasonable costs of refinance, and (iii) the refinance
does not result in higher monthly payments on the First Lender Loan.than were due prior
to the refinance. Mortgage loans or equity lines of credit junior in lien priority to this Deed
of Trust are not permitted. The CITY and the Borrower agree that the requirements of this
paragraph are necessary to ensure the continued affordability of the Property to Borrower
and to minimize the risk of loss of the Property by Borrower through default and
foreclosure of mortgage loans. Borrower further acknowledges that violation of the
provisions of this paragraph shall constitute a Prohibited Transfer under this Deed of Trust.
REQUEST FOR NOTICE OF DEFAULT
AND FORECLOSURE UNDER SUPERIOR
MORTGAGES OR DEEDS OF TRUST
CITY will request that copies of notices of foreclosure from the holder of any
lien which has priority over this Deed of Trust be sent to CITY's address, as set forth on
page 1 of this Deed of Trust, as provided by Section 2924b of the Civil Code of California.
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j
NOTICE TO BORROWER: Do not sign this Deed of Trust if it contains blank spaces. All
spaces should be completed before you sign.
IN WITNESS WHEREOF, Borrower has executed this Deed of Trust.
eA Date: >�/2� I. Borrower
Eliahu Eilfort
Borrower
Chaya Eilfort
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DEED OF TRUST RIDER
THIS DEED OF TRUST RIDER (herein 'Rider") is attached to and made a
part of the Deed of Trust dated 'OeG. , 20_M made between the CITY OF
ENCINITAS, a municipal corporation (herein "CITY") and executed by Eliahu Eilfort and
Chaya Eilfort, husband and wife as community property, as Borrowers.
Borrower agrees to the provisions of this Deed of Trust Rider in addition to
those of the Deed of Trust. THE LANGUAGE OF THIS RIDER PREVAILS OVER THE
.DEED OF TRUST IN THE EVENT OF A CONFLICT.
1. Borrower agrees that the Property being purchased is affordable as
described in this Deed of Trust, and that the continued use of the Property must be in.
accordance with the Declaration of Covenants, Conditions and Restrictions recorded
AUGUST 13, 2019, as Document No. 2019-0340504 and that no transfer of the Property
will be permitted and no successor-in-interest to the Borrower(s) will be permitted to
assume the Note secured by this Deed of Trust Rider, unless the written consent of CITY
to the transfer has been first obtained. No such consent. will be given by CITY except in
the following limited circumstances:
(a) the transfer results from the death of a spouse, and the
transfer is to the surviving spouse who is also a member of the
HOMEBUYER HOUSEHOLD:
(b) a transfer to a spouse when the .spouse becomes, by such a
transfer, a co-owner of the PROPERTY;
(c) a transfer of the PROPERTY resulting from a decree of
dissolution of the marriage or legal separation or from a property
settlement agreement incidental to such a decree and by which a spouse
who is already an OWNER becomes the sole owner of the PROPERTY;
and/or
(d) a transfer by the OWNER to an inter vivos trust in which the
OWNER is the sole current beneficiary.
(e) a transfer in accordance with the ownership restrictions
contained in paragraphs 16, 17 and 18 of the Deed of Trust.
2. This Deed of.Trust is subordinate to any first deed of trust or
mortgage on the Property made by or held by an institutional lender or investor pursuant to
a Subordination Agreement.
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NOTICE TO -BORROWER: Do not sign this Deed of Trust Rider if-it contains blank
spaces. All spaces should be completed before you sign.
Date: J2/2,i��/6! , Borrower
Eliahu Eilfort
Borrower
Chaya Eilfort
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CALIFORNIA ALL-PURPOSE ACKNOWLEDGEMENT
A notary public or other officer completing this certificate
verifies only the identity of the individual who signed the
document to which this certificate is attached, and not the
truthfulness, accuracy, or validity of that document.
STATE OF California )SS
COUNTY OF _S'W F)i Prti o )
On �,rn- U 14 before me, AA a Lei Sp i h I'� , Notary Public, personally appeared
�I(A 6 1 e i 1-x/1- 641d M,1 vU F160144-
who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within
instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by
his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the
instrument.
I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct.
WITNESS my hand and official seal.
dI EE
RDENELDA L
C
Signature , & NOTARY 0CAUI ORNI
SAN DIEGO
Comm.Exp. 4.2023 P
G)
This area for official notarial seal.
OPTIONAL SECTION - NOT PART OF NOTARY ACKNOWLEDGEMENT
CAPACITY CLAIMED BY SIGNER
Though statute does not require the Notary to fill in the data below, doing so may prove invaluable to persons relying on the
documents.
❑ INDIVIDUAL
❑ CORPORATE OFFICERS) TITLE(S)
0 PARTNER(S) ❑ LIMITED ❑ GENERAL
0 ATTORNEY-IN-FACT
0 TRUSTEE(S)
❑ GUARDIAN/CONSERVATOR
0 OTHER
SIGNER IS REPRESENTING:
Name of Person or Entity Name of Person or Entity
OPTIONAL SECTION - NOT PART OF NOTARY ACKNOWLEDGEMENT
Though the data requested here is not required by law, it could prevent fraudulent reattachment of this form.
THIS CERTIFICATE MUST BE ATTACHED TO THE DOCUMENT DESCRIBED BELOW
TITLE OR TYPE OF DOCUMENT:
NUMBER OF PAGES DATE OF DOCUMENT
SIGNERS) OTHER THAN NAMED ABOVE
Reproduced by First American Title Company 11/2007
i
ACKNOWLEDGMENT
State of Califor 'a )
County of San Dieg )
On , 20_, before me, personally appeared,
who proved to me on the basis of satisfactory
evidence to be the persons) hose name(s) is/are subscribed to the within instrument
and acknowledged to me that h /she/they executed the same in his/her/their authorized
capacity(ies), and that by his/he,(their signature(s) on the instrument the person(s), or
the entity upon behalf of which the erson(s) acted, executed the instrument.
I certify under PENALTY OF PERJU Y under the laws-of the State of California that the
foregoing paragraph is true and correct.
WITNESS my hand and official seal.
Signature (Seal)
Pagel
REQUEST FOR RECONVEYANCE
TO TRUSTEE:
The undersigned is the holder of the note or notes secured by this Deed of
Trust. Said note or notes, together with all other indebtedness secured by this Deed of
Trust, have been paid in full. You.are hereby directed to cancel said note or notes and this
Deed of Trust, which are delivered hereby, and to reconvey, without warranty, all the
estate now held by you under this Deed of Trust to the person or persons legally entitled
thereto.
Dated: By:
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Exhibit "A"
Legal Description
Real property in the City of Encinitas, County of San Diego, State of California, described as follows:
PARCEL 1:
LOT 6 OF CITY OF ENCINITAS TM 15-064, IN THE CITY OF ENCINITAS, COUNTY OF SAN DIEGO, STATE
OF CALIFORNIA, ACCORDING TO MAP THEREOF NO. 16267, FILED IN THE OFFICE OF THE COUNTY
RECORDER OF SAN DIEGO COUNTY, MAY 2, 2018 ("MAP'S;
RESERVING THEREFROM, ALL EASEMENTS DESCRIBED IN THE DECLARATION OF COVENANTS,
CONDITIONS AND RESTRICTIONS AND ESTABLISHMENT OF EASEMENTS OF ALCOVE RECORDED IN
THE OFFICIAL RECORDS OF THE COUNTY RECORDER OF SAN DIEGO COUNTY, CALIFORNIA ON
AUGUST.13, 2019 AS DOCUMENT NO. 2019-0340504, AND ANY AMENDMENT AND SUPPLEMENTS
THERETO (COLLECTIVELY,THE"DECLARATION),THE MAP AND ALL OTHER EASEMENTS OF RECORD
AS OF THE DATE HEREOF INCLUDING WITHOUT LIMITATION, A NON-EXCLUSIVE EASEMENT IN FAVOR
OF THE ASSOCIATION IN,TO, OVER, UNDER AND ACROSS THAT PORTION OF THE ABOVE
REFERENCED LOT DESIGNATED IN THE DECLARATION AS AN ASSOCIATION MAINTENANCE AREA, IF
ANY, FOR THE PURPOSE OF MAINTENANCE AND REPAIR,TOGETHER SUCH RIGHTS OF ACCESS
NECESSARY TO PERFORM SUCH MAINTENANCE AND REPAIR, AS MORE FULLY PROVIDED IN THE
DECLARATION.
PARCEL 2:
A NON-EXCLUSIVE TEMPORARY EASEMENT FOR PEDESTRIAN AND VEHICULAR ACCESS, INGRESS AND
EGRESS BY GRANTEE OVER,UPON AND ACROSS THAT PORTION OF LOT B OF THE MAP, AS
DESCRIBED IN THAT CERTAIN EASEMENT GRANT DEED RECORDED IN THE OFFICIAL RECORDS OF THE
COUNTY RECORDER OF SAN DIEGO COUNTY ON SEPTEMBER 4, 2019 AS DOCUMENT NO. 2019-
0379411, WHICH EASEMENT IS APPURTENANT TO THE LOT DESCRIBED IN PARCEL 1-ABOVE. THE
TEMPORARY EASEMENT SHALL AUTOMATICALLY TERMINATE AND BE OF NO FURTHER FORCE AND
EFFECT ON THE DATE A DEED IS RECORDED TRANSFERRING LOT 14 OF THE TO THE
ASSOCIATION.
PARCEL 3:
A NON-EXCLUSIVE EASEMENT, IN COMMON WITH OTHER OWNERS, FOR ACCESS, INGRESS AND
EGRESS, IN,TO, OVER,UNDER AND ACROSS CERTAIN PORTIONS OF THE ASSOCIATION PROPERTY
DESCRIBED IN THE DECLARATION, WHICH EASEMENT IS APPURTENANT TO THE LOT DESCRIBED IN
PARCEL 1 ABOVE.THESE EASEMENTS ARE GRANTED SUBJECT TO:
A. THE EASEMENT AND OTHER RIGHTS RESERVED IN THE DECLARATION IN FAVOR OF GRANTOR FOR
MARKETING AND DEVELOPMENT, INCLUDING, WITHOUT LIMITATION, GRANTOR'S RIGHT TO
MAINTAIN MODEL HOMES IN THE LOTS OWNED BY GRANTOR, AS WELL AS THE RIGHT OF ACCESS,
INGRESS, AND EGRESS FOR VISITORS TO THE SALES OFFICE AND MODEL HOMES AND THE RIGHT TO
MAINTAIN SIGNS OR OTHER MARKETING MATERIALS WITHIN THE ASSOCIATION PROPERTY OF THE
COMMUNITY(DEFINED IN THE DECLARATION);
B. GRANTOR'S EASEMENT FOR INGRESS AND EGRESS, IN, ON, OVER,THROUGH AND ACROSS THE
ASSOCIATION PROPERTY TO PERMIT GRANTOR TO INSTALL IMPROVEMENTS THEREON; AND
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C. GRANTOR'S RIGHT TO PREVENT ACCESS OVER PORTIONS OF ASSOCIATION PROPERTY BY PLACING
A CONSTRUCTION FENCE OR OTHER BARRIER THEREON PRIOR TO COMPLETION OF CONSTRUCTION
OF ALL IMPROVEMENTS WITHIN THE COMMUNITY, PROVIDED THAT GRANTEE HAS AT LEAST ONE
ROUTE OF ACCESS BETWEEN THE LOT DESCRIBED IN PARCEL 1 ABOVE AND A PUBLIC STREET.
Commonly known as: 735 Adelaide Circle, Encinitas, CA 92024
APN #: 256-123-06-00
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