Form RW16-13 "Right to Purchase Agreement Between Caltrans and Buyer" - California

What Is Form RW16-13?

This is a legal form that was released by the California Department of Transportation - a government authority operating within California. As of today, no separate filing guidelines for the form are provided by the issuing department.

Form Details:

  • Released on September 1, 1994;
  • The latest edition provided by the California Department of Transportation;
  • Easy to use and ready to print;
  • Quick to customize;
  • Compatible with most PDF-viewing applications;
  • Fill out the form in our online filing application.

Download a fillable version of Form RW16-13 by clicking the link below or browse more documents and templates provided by the California Department of Transportation.

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Download Form RW16-13 "Right to Purchase Agreement Between Caltrans and Buyer" - California

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Space above this line for Recorder's Use
DISTRICT
COUNTY
ROUTE
LOCATION
NUMBER
RIGHT TO PURCHASE AGREEMENT BETWEEN CALTRANS AND BUYER
THIS AGREEMENT, dated
, is entered into between the STATE OF CALIFORNIA,
DEPARTMENT OF TRANSPORTATION (Caltrans)
(Insert address of District Office)
And
(Insert name of BUYER)
1.
The California Legislature has declared in Government Code Section 54235 that sales of state-owned surplus residential
property which result in displacement and/or a loss of low and moderate income housing cause a significant environmental
effect.
2.
Government Code Section 54235 and following sections require that in order to mitigate such environmental effect, all
surplus single family residences must be offered to eligible current occupants at an affordable price, which may be less
than market value.
3.
Government Code Section 54237 requires that when state-owned surplus single family residences are sold to present
occupants for less than market value, the selling agency must impose such terms, conditions and restrictions as will assure
that such housing will remain available to persons and families of low or moderate income and households with incomes no
greater than the incomes of present occupants in proportion to the area median income.
4.
BUYER has been given the opportunity to purchase the single family residence located at
(Insert address)
(the PROPERTY)
5.
for $
(the "base price") although the market value of the PROPERTY has been estimated to be
$
.
In return for that opportunity, BUYER hereby covenants and agrees that:
A.
The interest in the PROPERTY to be conveyed to BUYER will be subject to a thirty (30) year continuing pre-emptive
right to purchase (RIGHT TO PURCHASE) the PROPERTY vested in Caltrans.
B.
Caltrans shall exercise the RIGHT TO PURCHASE only for the purpose of making the PROPERTY available to a
person or family of low or moderate income or household with an income no greater than the income of the present
occupants in proportion to the area median income.
C.
Caltrans may designate a governmental or nonprofit organization (hereinafter DESIGNEE) to exercise its RIGHT TO
PURCHASE. BUYER shall be given written notice of the name and address of any DESIGNEE.
D.
The RIGHT TO PURCHASE may be assigned to an individual private buyer (hereinafter ASSIGNEE) who qualifies as
a low or moderate income person or family or a household with an income no greater than the income of the present
occupants in proportion to the area median income.
RW 16-13 (9/1994)
STATE DEPARTMENT OF TRANSPORTATION
Page 1 of 4
Space above this line for Recorder's Use
DISTRICT
COUNTY
ROUTE
LOCATION
NUMBER
RIGHT TO PURCHASE AGREEMENT BETWEEN CALTRANS AND BUYER
THIS AGREEMENT, dated
, is entered into between the STATE OF CALIFORNIA,
DEPARTMENT OF TRANSPORTATION (Caltrans)
(Insert address of District Office)
And
(Insert name of BUYER)
1.
The California Legislature has declared in Government Code Section 54235 that sales of state-owned surplus residential
property which result in displacement and/or a loss of low and moderate income housing cause a significant environmental
effect.
2.
Government Code Section 54235 and following sections require that in order to mitigate such environmental effect, all
surplus single family residences must be offered to eligible current occupants at an affordable price, which may be less
than market value.
3.
Government Code Section 54237 requires that when state-owned surplus single family residences are sold to present
occupants for less than market value, the selling agency must impose such terms, conditions and restrictions as will assure
that such housing will remain available to persons and families of low or moderate income and households with incomes no
greater than the incomes of present occupants in proportion to the area median income.
4.
BUYER has been given the opportunity to purchase the single family residence located at
(Insert address)
(the PROPERTY)
5.
for $
(the "base price") although the market value of the PROPERTY has been estimated to be
$
.
In return for that opportunity, BUYER hereby covenants and agrees that:
A.
The interest in the PROPERTY to be conveyed to BUYER will be subject to a thirty (30) year continuing pre-emptive
right to purchase (RIGHT TO PURCHASE) the PROPERTY vested in Caltrans.
B.
Caltrans shall exercise the RIGHT TO PURCHASE only for the purpose of making the PROPERTY available to a
person or family of low or moderate income or household with an income no greater than the income of the present
occupants in proportion to the area median income.
C.
Caltrans may designate a governmental or nonprofit organization (hereinafter DESIGNEE) to exercise its RIGHT TO
PURCHASE. BUYER shall be given written notice of the name and address of any DESIGNEE.
D.
The RIGHT TO PURCHASE may be assigned to an individual private buyer (hereinafter ASSIGNEE) who qualifies as
a low or moderate income person or family or a household with an income no greater than the income of the present
occupants in proportion to the area median income.
RW 16-13 (9/1994)
STATE DEPARTMENT OF TRANSPORTATION
Page 1 of 4
Page 2 of 4
RIGHT TO PURCHASE AGREEMENT BETWEEN
CALTRANS AND BUYER (Cont.)
RW 16-13 (9/1994)
E.
BUYER will not lease or sublease the PROPERTY, or any part thereof, or allow parties other than BUYER to live in
the PROPERTY, without the prior written consent of that DESIGNEE.
F.
Except for purposes of repairing or maintaining the PROPERTY, BUYER shall not encumber the PROPERTY or any
interest therein, in whole or in part, without the prior express written consent of Caltrans or if there is a DESIGNEE,
the prior written consent of that DESIGNEE.
G.
BUYER shall not add any substantial improvements to the PROPERTY without the prior express written consent of
Caltrans or if there is a DESIGNEE, the prior written consent of that DESIGNEE.
"Substantial improvements" are those improvements which materially add to the value of the PROPERTY or adapt
it to new uses. Examples of such improvements are: putting a recreation room in an unfinished basement, adding
another bathroom or bedroom, adding a swimming pool, enlarging a garage, installing a fireplace, or constructing a
patio.
"Substantial improvements" do not include emergency repairs, maintenance or work required by applicable
building or housing codes.
In order to assure that the PROPERTY will remain affordable to persons and families of low or moderate income
and households with incomes no greater than the income of the BUYER in proportion to the area median income,
Caltrans will minimize substantial improvements to the PROPERTY.
H.
BUYER shall not sell, transfer or assign the PROPERTY, or any interest therein, in whole or in part, or agree to do
so, except for transfers to the BUYER'S spouse or children occasioned by the death or divorce of BUYER, without
first complying with the procedures set out in Paragraph 7 below.
In addition, at the time of transfer to BUYER'S spouse or children, the spouse or children taking the PROPERTY
shall execute an agreement with CALTRANS renewing the RIGHT TO PURCHASE.
I.
BUYER shall at all times maintain insurance on the PROPERTY at a level of at least 80 percent of replacement cost
and shall provide that such insurance policy names Caltrans as an additional insured.
J.
BUYER shall secure financing to buy the PROPERTY and shall cause the lender to include in the deed of trust
securing the note a provision that any power of sale is subject to the RIGHT TO PURCHASE.
6.
To insure compliance with the above described conditions, the BUYER will allow CALTRANS or its DESIGNEE periodic
inspection of the interior and exterior of the unit during normal business hours or otherwise by special arrangements,
subject to a written five day notice.
7.
In the event that BUYER, BUYER'S spouse or children who have title pursuant to subparagraph H of Paragraph 5 above,
or any owner who has title derived through foreclosure, deed in lieu of foreclosure, trustee's sale or otherwise, desire to sell,
transfer or assign the Property, they shall comply with the following procedures:
A.
Simultaneously notify Caltrans and its DESIGNEES (if any) of the intent to sell, transfer or assign, in writing by
certified mail (hereinafter "NOTICE OF INTENT"). Caltrans or if there is a DESIGNEE, that DESIGNEE shall then
have a RIGHT TO PURCHASE the PROPERTY for the price and terms set out below, which RIGHT TO
PURCHASE shall be exercisable, by delivery of written notice (hereinafter "NOTICE OF ACCEPTANCE) to BUYER
by personal delivery or certified mail, within sixty (60) calendar days from the date of receipt of the NOTICE OF
INTENT. (Hereinafter all references to days shall refer to calendar days.)
B.
If BUYER fails to comply with the provisions of subparagraphs E, F, G, or H of Paragraph 5 above, then Caltrans, or if
there is a DESIGNEE, that DESIGNEE may deem, at its election, that BUYER had delivered a NOTICE OF INTENT
and the RIGHT TO PURCHASE may be exercised pursuant to Paragraph 7 herein. Failure to exercise the RIGHT
TO PURCHASE under the circumstances described in this paragraph shall not result in the expiration of the RIGHT
TO PURCHASE, shall not give BUYER the right to sell the PROPERTY at market value pursuant to subparagraph G
of Paragraph 7 below and shall not bar Caltrans from taking other action to enforce this Attachment to Grant Deed.
C.
If the RIGHT TO PURCHASE is exercised, sales escrow shall be opened within fifteen (15) days after NOTICE OF
ACCEPTANCE is delivered, and closed as soon as practicable.
D.
Following receipt of the NOTICE OF INTENT, the entity exercising the RIGHT TO PURCHASE will inspect the
PROPERTY to determine whether in its judgement repairs, rehabilitation, or replacements ("fix-up costs"), beyond the
requirements of normal maintenance are necessary in order to put the unit into saleable condition. If any such is
deemed to be necessary, they shall either be provided by BUYER before close of escrow or the entity exercising the
RIGHT TO PURCHASE will determine the cost thereof which shall be the "fix-up costs."
E.
In the event the RIGHT TO PURCHASE is exercised, the "gross option price" shall be:
(1)
The "base price" for the PROPERTY, as shown in Paragraph 4 above, adjusted by a percentage which is the
same as the percentage by which the median household income for a family of four in
County
increased between the date that BUYER took title to the PROPERTY and the date that the NOTICE OF
ACCEPTANCE was delivered. Median income shall be determined on the basis of county median income
figures published by the United States Department of Housing and Urban Development (HUD) or if HUD does
Page 3 of 4
RIGHT TO PURCHASE AGREEMENT BETWEEN
CALTRANS AND BUYER (Cont.)
RW 16-13 (9/1994)
not publish such figures, on the basis of figures published by the STATE OF CALIFORNIA, DEPARTMENT OF
HOUSING AND COMMUNITY DEVELOPMENT (HCD), and was
in
County
on the date that BUYER took title to the PROPERTY. (For example, the base price is $52,000 for a unit and
the median income the date BUYER takes title is $20,000 and the median income on the date the NOTICE OF
ACCEPTANCE is delivered is $25,000, the percentage increase is 25 percent. Therefore, the base price by
BUYER will be increased by 25 percent from $52,000 to $65,000).
(2)
Plus the current value of any substantial improvements as determined by the entity exercising the RIGHT TO
PURCHASE if such improvements had the prior written approval as required by subparagraph G of Paragraph
5 above.
F.
The "net option price" to be paid to BUYER at close of escrow will be the "gross option price," less the total of:
(a) The unpaid balance of the First Deed of Trust at close of escrow, including any costs that may be incurred as a
result of a default by BUYER; and
(b) The fix-up costs unless fix-up work is provided by BUYER; and
(c) Any other liens or encumbrances at close of escrow and prorated current real estate taxes; and
(d) Three percent of the "gross option price" which amount will be paid to the entity exercising the RIGHT TO
PURCHASE to cover the cost of administration; and
(e) All escrow, title policy and closing costs, except for costs which the lender or applicable law require to be paid by
the party acquiring the PROPERTY.
G.
The "net option price" will be paid in cash at the close of escrow or as otherwise provided by mutual agreement.
H.
In the event the BUYER provides the notices required in subparagraph A of Paragraph 7 above and the RIGHT TO
PURCHASE is not exercised within the time limits set forth in this Agreement, BUYER shall be free to sell the
PROPERTY, at its then market value, in an arm's length transaction. Caltrans may offer assistance to BUYER in
conducting a market value sale and BUYER shall not unreasonably refuse to accept a market value offer for the
PROPERTY. The proceeds of the sale shall be divided between Caltrans and BUYER as follows:
To BUYER: Up to, but not to exceed, the net amount BUYER would have received under subparagraph F of
Paragraph 7 above had the RIGHT TO PURCHASE been exercised on the date of the sale of the PROPERTY.
8.
To Caltrans: The balance of the proceeds of the sale. Normal real estate brokerage commissions, if paid, shall
be taken from Caltrans' share of the proceeds.
A.
BUYER agrees to cause to be filed for records in the Office of the Recorder of the County of
a request for a copy of any Notice of Default and of any Notice of Sale under any deed of trust or mortgage with
power of sale encumbering the PROPERTY pursuant to Section 2924(b) of the Civil Code of the State of California.
Such request shall specify that any such notice shall be mailed to Caltrans. Any Notice of Sale given pursuant to
Civil Code Section 2924(f) shall constitute a NOTICE OF INTENT giving rise to the RIGHT TO PURCHASE under
this Agreement. The RIGHT TO PURCHASE shall take priority over any trustee's sale or foreclosure.
B.
If the RIGHT TO PURCHASE is not exercised within the time limits specified in Paragraph 7, and the PROPERTY is
sold at trustee's sale or foreclosure or by deed in lieu of foreclosure, the party who acquires the PROPERTY shall
take subject to the RIGHT TO PURCHASE and all surplus proceeds will be distributed as follows:
To BUYERS: Up to, but not to exceed, the net amount BUYER would have received under subparagraph E of
Paragraph 7 had the RIGHT TO PURCHASE been exercised on the date of the foreclosure.
To Caltrans: The balance of the surplus.
C.
If BUYER cures any default and the RIGHT TO PURCHASE is not exercised within the time limits specified in
Paragraph 7, the RIGHT TO PURCHASE will continue in existence.
9.
This Agreement shall be recorded at close of escrow, so as to put all later parties on notice of the RIGHT TO PURCHASE
under this Agreement.
10.
In the event the PROPERTY is damaged and the insurance proceeds are not to be used to rebuild, the PROPERTY will be
sold at market value by BUYER. In that event, or in the event of acquisition for a public use, the proceeds from the
insurance and sale or from the acquisition shall be distributed as follows:
To BUYER: Up to, but not to exceed the net amount BUYER would have received under subparagraph E of
Paragraph 7 above had the RIGHT TO PURCHASE been exercised on the date of damage or acquisition.
To Caltrans: The balance, if any.
11.
Should it become necessary to commence legal proceedings to enforce any of the provisions of this Agreement, the parties
hereto agree that the prevailing party shall be entitled to all legal costs incurred in connection therewith including a
reasonable sum for attorney's fees.
Page 4 of 4
RIGHT TO PURCHASE AGREEMENT BETWEEN
CALTRANS AND BUYER (Cont.)
RW 16-13 (9/1994)
12.
The notices required herein shall be delivered to the addresses set out in this Agreement unless and until the person or
persons entitled to such notices indicate in writing to the other parties hereto of a different address to which any notice or
notices should be delivered.
13.
Should BUYER fail to comply with the terms, conditions and restrictions imposed by this Agreement, Caltrans reserves the
right to require BUYER to pay to Caltrans the difference between the actual price paid by BUYER and the fair market value
of the PROPERTY at the time of noncompliance plus six percent interest on such amount for the period of time the property
has been held by BUYER.
14.
Caltrans shall not become liable to BUYER nor become obligated in any manner to BUYER by reason of any assignment of
the RIGHT TO PURCHASE, nor shall Caltrans be in any way obligated or liable to BUYER for any failure of any
DESIGNEE or ASSIGNEE to consummate a purchase of the PROPERTY or to comply with the terms of any Agreement
for the sale of the PROPERTY.
15.
If any provision or application of this Agreement is held invalid by a court of law, such invalidity shall not affect other
provisions or applications of this Agreement which can be given effect without the invalid provision or application, and to
this end the provisions of this Agreement are severable.
16.
This Agreement shall automatically terminate thirty (30) years from its date. Until then, this Agreement shall inure to the
benefit of and bind Caltrans and BUYER, and their respective heirs, successors, designees and assignees. All obligations
hereby imposed shall be deemed to be covenants running with the land.
17.
The provisions of this Agreement shall become permanently void upon acquisition of PROPERTY title by the Secretary of
HUD.
BUYER
Caltrans
By
(Notary acknowledgments must be attached
per Civil Code Section 1180 et seq.)
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TTY 711, or write to Records and Forms Management, 1120 N Street, MS-89, Sacramento, CA 95814.
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