HomeMy WebLinkAboutC-2985 - Listing Agreement for Sale of West Newport LibraryCITY COUNCIL AGENDA
ITEM NO. 9
CITY OF NEWPORT BEACH
OFFICE OF THE CITY MANAGER .JAN 2 4 1M
JANUARY 24, 1994
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TO: MAYOR AND CITY COUNCIL
FROM: ASSISTANT CITY MANAGER
SUBJECT: SALE OF WEST NEWPORT LIBRARY FACILITY C- a%Z.S
ACTION: If desired, approve and authorize City. Manager to execute a listing
agreement with Cannery Village Realty for the sale or lease of
6000 West Coast Highway.
BACKGROUND: The City Council approved the sale of this property in December
1992 for a price of $320,000. The property was appraised in September 1992 at a
value of $340,000 but a mistake in the appraisal was'corrected to yield a value of
$325,000.
The property will be vacated on February 1, 1994, and there is an interested buyer.
However, before proceeding with this buyer it will be necessary to expose this property
to the general market.
DISCUSSION: Cannery Village Realty has submitted an excellent proposal
(available in my office) to market this property at a price of $329,000 with a 5%
commission. Sale at this price after expenses would net the City approximately
$305,000. To provide more bargaining space, staff recommends a listing price of
$339,000.
Cannery Village Realty and specifically Jim Jacobs have established an excellent
working relationship with the City based on their handling of the sale of 4210 River
Avenue. This sale netted the City a maximum fee but paid only a small commission to
the Realtor. Nevertheless the service from the agent was excellent throughout.
Furthermore, this brokerage is located nearby in West Newport and has excellent
experience in the area.
m
The listing agreement will exclude the current interested buyer thus eliminating any
commission to Cannery Village Realty.
The market for commercial properties is very low, and if suitable bids are not received
it may be advisable for the City to consider leasing this property. Accordingly, the
proposed action includes entertaining proposals to lease the property. Preliminary
indications are that the City could net nearly $23,000 a year from such a lease.
RECOMMENDATION: Authorize the City Manager to execute a listing agreement
for the sale price of $329,000 with a commission of 5% or for lease of the property for a
price to be negotiated with a commission of 5% of the first five years rent.
Kenneth J. elino
KJD:mb
` EXCLUSIVE AUTHORIZATION AND RIGHT TO SELL
MULTIPLE LISTING AUTHORIZATION
j - THIS IS IN ED TO BE A LEGALLY BINDING CONTRACT — READ 1 iEFULLY.
CALIFORNIA ASSOCIATION OF REALTORS' (CAR) STANDARD FORM
' 1. EXCLUSIVE RIGHT TO SELL: I, the undersigned ( "Seller ") hereby employ and grant 4A)I It li
( "Broker ") the 2xc�lusive� and irrevocable right commencing on
11:59 P.M. 0,,q A,j ,r, �a— . 190 , to sell or exchange the real roperty situated in the City of
of
, California described as follows:
and expiringat
' - ( "Property ").
2. TERMS OF SALE The selling price shall 4,4n1�Z
7 r lr J. *. ), to be paid as f lows:
The following Items of personal property are included in the above price:
3. MULTIPLE LISTING SERVICE (MLS): Broker is a Participant of & cC
Multiple Listing Service (MLS) and this listing information will be provided to the LS to be published and disseminated to its Participants and
Subscribers in accordance with its Rules and Regulations. Broker is authorized to cooperate with other real estate brokers, and to report the
sale, its price, terms and financing for the publication, dissemination, information and use by authorized Association /Board members, MLS
Participants and Subscribers.
4. TITLE INSURANCE: Evidence of title shall be a California Land Title Association policy of title insurance in the amount of the selling price.
Upon request, a title insurance company can provide information about other types of title insurance coverage.
S. COMPENSATION TO BROKER:
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.
Seller agrees to pay to t" .thZ_41; Broker(s), irrespective
of agency relationship(s), as compl6nsalion for servicesOO57 percent of the sales price, or $ as follows:
(a) if the Property is sold by Broker, or through any other person including Seller, on the above terms or any other price and terms acceptable
to Seller during the above time period or any extension of said time period;
(b) if the Property is withdrawn from sale, transferred, conveyed, leased, rented, or made unmarketable by a voluntary act of Seller, without
the consent of Broker, during the above time period or any extension of said time period;
(c) ifwithin 0 calenclardaysof the final termination, including extensions, of this Exclusive Authorization and Rightto Sell, the Property
is sold, conveyed, or otherwise transferred to anyone with whom Broker(s) have had negotiations prior to final termination provided that
Broker has given to Seller, prior to or upon termination, a written notice including the names of the prospective purchaser(s). This section
(c) shall not apply if Seller enters into a valid listing agreement with another licensed real estate broker after the final termination of this
Exclusive Authorization and Right to Sell;
(d) in the event of an exchange, permission is hereby given Broker to represent all parties and collect compensation from them provided that
there is full disclosure to all parties of such agency;
(e) if completion of the sale is prevented by default of Seller, then upon such default;
(1) if completion of the sale is prevented by a party to the transaction other than Seller, then only if and when Seller collects damages by suit
or otherwise and then in an amount not less than one -half of the damages recovered, but not to exceed the above compensation, after
first deducting title and escrow expenses and the expenses of collection, if any;
(g) Broker(s) is authorized to cooperate with other brokers, and divide with other brokers such compensation in any manner acceptable to Broker(s);
(h) Seller hereby irrevocably assigns to Broker(s) the funds and proceeds of Seller in escrow equal to the above compensation.
6. AGENCY RELATIONSHIPS: Broker shall act as the agent for Seller in any resulting transaction. Depending upon the circumstances, it may
be necessary or appropriate for Broker to act as agent of both Seller and Buyer, exchange party, or one or more additional parties. If applicable,
Broker shall, as soon as practicable, disclose to Seller any election to act as a dual agent representing both Seller and Buyer. It the Property
is a residential dwelling with one to four units, Broker shall provide agency relationships disclosure as required by law. Seller understands that
Broker may have or obtain listings on other properties and that potential buyers may consider, make offers on, or purchase through Broker
property the same as or similar to Seller's Property. Seller consents to Broker's representation of sellers and buyers of other properties before,
during, and after the expiration of this agreement.
7, DEPOSIT Broker is authorized to accept and hold on Seller's behalf a deposit to be applied toward the purchase price.
S. HOME WARRANTY PLAN: Seller is informed that home warranty plans are available. Such plans may provide additional protection and
benefit to Seller and potential buyers. Cost and coverage may vary.
*9. KEYBOX: Seller authorizes Broker to install a KEYBOX: (Initial) YES I • ) NO ( /,)
10. SIGN: Seller authorizes Broker to install a FOR SALE /SOLD sign on the property: (Initial) YES /I ) NO
11. PEST CONTROL: Seller shall furnish a current Wood Destroying Pests
and Organisms Inspection Report of the main building and all structures of the
Property, except (initial) YES (0J) NO (---J)
12. DISCLOSURE: Unless exempt, Seller shall complete and sign a Real Estate Transfer Disclosure Statement concerning the condition of the
Property. Seller agrees to save and hold Broker harmless from all claims, disputes, litigation, and /or judgments arising from any incorrect
information supplied by Seller, or from any material facts which Seller knows but fails to disclose.
13. EARTHQUAKE SAFETY. If the Property is a residential dwelling with one to four units, Seller acknowledges receipt of a copyof the Homeowner's
Guide to Earthquake Safety from Broker. (initial) (___J)
X14. TAX WITHHOLDING: Seller agrees to perform any act reasonably necessary to carry out the provisions of FIRPTA (Internal Revenue Code
§1445) and California Revenue and Taxation Code § §18805 and 26131, and regulations thereunder.
15. EQUAL HOUSING OPPORTUNITY: The Property is offered in compliance with federal, state, and local anti- discrimination laws.
16. ATTORNEY'S FEES: In anyaction, proceeding, orarbitration arising out of this agreement, involving the Seller and/or Broker(s), the prevailing
party shall be entitled to reasonable attorney's fees and costs except as provided in paragraph 17.
Broker and Seller ackno IF—ADD—ITIONAL }receipt of copy of this page, which constitutes Page 1 of� Pages.
Seller's Initials Y ) ( ) Broker's Initials ( ) ( )
READ REVERSE SIDE OF PAGE 2 OF THIS AGREEMENT INFORMATION.
THIS STANDARDIZED DOCUMENT FOR USE IN SIMPLE TRANSACTIONS HAS BEEN APPROVED BY THE CALIFORNIA ASSOCIATION OF REALTORS' INFORM ONLY. NO REPRESENTATION
IS MADE AS TO THE APPROVAL OF THE FORM OF ANY SUPPLEMENTS NOT CURRENTLY PUBLISHED BY THE CALIFORNIA ASSOCIATION OF REALTORS' OR THE LEGAL VALIDITY OR ADEQUACY
OF ANY PROVISION IN ANY SPECIFIC TRANSACTION. IT SHOULD NOT BE USED IN COMPLEX TRANSACTIONS OR WITH EXTENSIVE RIDERS OR ADDITIONS.
AREAL ESTATE BROKER IS THE PERSON QUALIFIED TO ADVISE ON REAL ESTATE TRANSACTIONS. IF YOU DESIRE LEGAL OR TAX ADVICE, CONSULT AN APPROPRIATE PROFESSIONAL.
The copyright laws of the United States (17 U.S. Code) forbid the unauthorized OFFICE USE ONLY
reproduction of this form by any means including facsimile or computerized formats.
CopyrighVc 1993, CALIFORNIA ASSOCIATION OF REALTORS "'
Reviewed by 8rckar or Designee
525 South Virgil Avenue. Los Angeles, California 90020 Date
._. wKnuanr
REVISED 7/93 SELLER'S COPY M- R- JUL-93
CV/4 IICI \/C A 1 A T1^11 Aa1n r)1/�LIT TPA f�n•1 r /• � � r���+�
-7001 C
i1ATION OF OISPUTES: BROK �D SEL R AGREE TO MEDIATE ANY DIS "iOR CLAIM BETWEEN AEM ARISING OUT
�." 14 THIS CON wRACT ®R ANY RESULTI G TRANSACTION BEFORE RESORTING TO ARBITRATION OR COURT ACTION. Mediation is
< a aprocessinwhichpartiesattempttor esolvea dispute bysubmittingit loan impartial, neutral mediator who is authorized tofacilitatetheresolution
of the dispute but who is not empowered to impose a settlement on the parties. Mediation fee, if any, shall bedivided equally among the parties
involved. Betore the mediation begins, the parties agree to sign a document limiting the admissibility in arbitration or any civil action of anything
said, any admission made, and any documents prepared, in the course of the mediation, consistent with Evidence Code §1152.5. IF ANY PARTY
COMMENCES AN ARBITRATION OR COURTACTION BASED ON A DISPUTE OR CLAIM TO WHICH THIS PARGRAPH APPLIES WITHOUT
FIRST ATTEMPTING TO RESOLVE THE MATTER THROUG H MEDIATION, THEN IN THE DISCRETION OF THE ARBITRATOR(S) OR JUDGE.
THATPARTY SHALL NOT BE ENTITLEDTO RECOVER ATTORNEY'S FEES EVEN IFTHEY WOULD OTHERWISE BE AVAILABLE TO THAT
PARTY IN ANY SUCH ARBITRATION OR COURT ACTION. However, 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, shall not in itself constitute a loss of the right to recover
attorney's fees under this provision. The following matters are excluded from the requirement of mediation hereunder: (a) a judicial or non -
judicial foreclosure or other action or proceeding to enforce a deed of trust, mortgage, or installment land sale contract as defined in Civil Code
§2985, (b) an unlawful detainer action, (c) the filing or enforcement of a mechanic's lien, and (d) any matter which is within the jurisdiction of
a probate court.
18. ARBITRATION OF DISPUTES: Any dispute or claim in law or equity between Seller and Brokerarising out of this contractor any resulting transaction
which is not settled through mediation shall be decided by neutral, binding arbitration and not by court action, except as provided by California
law for judicial review of arbitration proceedings.
The arbitration shall be conducted in accordance with the rules of either the American Arbitration Association (AAA) or Judicial Arbitration
and Mediation Services, Inc. (JAMS). The selection between AAA and JAMS rules shall be made by the claimant first filing for the arbitration.
The parties to an arbitration may agree in writing to use different rules and/or arbitrator(s). In all other respects, the arbitration shall be conducted
in accordance with Part III, Title 9 of the California Code of Civil Procedure. Judgment upon the award rendered by the arbitrator(s) may be entered
in any court having jurisdictidn thereof. The partiesshall have the right to discovery In accordance with Code of Civil Procedure §1283.05. The
following matters are excluded from arbitration hereunder: (a) a judicial or non - judicial foreclosure or other action or proceeding to enforce
a deed of trust, mortgage, or installment land sale 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 or small claims court, and (e) an action for bodily
Injury or wrongful death, or for latent orpatent defects, to which Code of Civil Procedure §337.1 or §337.15 applies. 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, shall not
constitute a waiver of the right to arbitrate under this provision.
"NOTICE: BY INITIALLING IN THE 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 INITIALLING IN THE 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."
"WE HAVE READ AND UNDERSTANDTHE FOREGOING AND AGREE TO SUBMIT DISPUTES ARISING OUT OF THE MATTERS INCLUDED IN THE
'ARBITRATION OF DISPUTES' PROVISION TO NEUTRAL ARBITRATION."
Seller's Initials Broker's Initials
19. ADDITIONAL TERMS: AhAlt -A- lr rB�liAcl i s r,, , r s-n �Q
20. ENTIRE CONTRACT. All prior agreements between the parties are incorporated in this agreement, which constitutes the entire contract.
Its terms are intended by the parties as a final, complete, and exclusive expression of their agreement with respect to its subject matter and
may not be contradicted by evidence of any prior agreement or contemporaneous oral agreement. This agreement and any supplement,
addendum, or modification, including any photocopy or facsimile, may be executed in two or more counterparts, all of which shall constitute
one and the same writing.
21. CAPTIONS: The Captions in this contract are for convenience of reference only and are not intended as part of this contract.
, the Seller, warrant that I am the owner of the Property or have the authority to execute this contract. l acknowledge that I have read and
lnderstand this contract, including the information on the reverse side, and have received a copy.
)ate i California Telephone yj� -�CY;17, Fax
Seller , - Address z _?c' U p_; :
v_, -. R 1 i['C
feller State_ Zip
i consi�tion of the above, Broker agrees to use diligence in procuring a purchaser.
late 19. -2y-- Telephone " Fax Z &
:eat Est Brok r z 3
Address �S
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City N=Ufpil bi�r'YiC State _(_�.4 Zip 9� Cn�n'�
its form is available for use by the entire real estate industry. The use OFFICE USE ONLY
this form is not intended to identify the user as a REALTOR".
EALTOR' is a registered collective membership mark which maybe FDate wed by Broker or Designee
:ed only by real estate licensees who are members of the NATIONAL
SSOCIATIONOFREALTORS" aril who subscribe toils Codeof Ethics. Page 2 of exitt
Pages.
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