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Common Area Completion Security Agreement RE 613 - California

Common Area Completion Security Agreement Form. This is a California form and can be used in Subdivisions Bureau Of Real Estate Statewide .
 Fillable pdf Last Modified 8/19/2013
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State of California Common AreA Completion SeCurity Agreement [§11018.5(a)(2) or 11230] RE 613 (Rev. 6/05) NAME OF OWNERS ASSOCIATION Bureau of real eState SuBdiviSionS ASSOCIATION ADDRESS, CITY, STATE, ZIP CODE NAME OF SUBDIVIDER/DEVELOPER SUBDIVIDER/DEVELOPER ADDRESS, CITY, STATE, ZIP CODE NAME OF SUBDIVISION SUBDIVISION TYPE OF SUBDIVISION BRE FILE NUMBER COUNTY NAME OF ESCROW-HOLDER ESCROW HOLDER ADDRESS, CITY, STATE, ZIP CODE ESCROW ACCOUNT NUMBER PART ONE -- COMMON AREA COMPLETION SECURITY AGREEMENT 1. This Common Area Completion Security Agreement ("Agreement") is made this _____________ day of ______________________, _____, by and between the Subdivider/Developer and the Association identified above. 2. Recitals. A. Property to Which Agreement Applies. Subdivider/Developer is the owner of certain real property described as: ___________________________________________________________________________________________ ______ _____________________________________________________________________________________ ____________ _______________________________________________________________________________ _________________, Records of ___________________________________________ County, California (herein "the Subdivision"). B. Public Report. Subdivider/Developer has applied for a California Bureau of Real Estate Public Report ("Public Report") covering the Subdivision. Prior to obtaining the Public Report, the Subdivider/Developer is required pursuant to the provisions of Business and Professions Code §11018.5(a)(2) or 11230 to make and retain in full force and effect arrangements assuring completion, free of all liens and claims, of certain common area improvements listed on the Planned Construction Statement attached to this Agreement as Exhibit "A" ("Improvements"). 3. Secured Obligation. Subdivider/Developer shall complete or cause to be completed, at Subdivider's/Developer's sole expense, the Improvements, free of all liens and claims, on or before the latest completion date specified on Exhibit "A", or an extension thereof given in writing by the Association to the Subdivider/Developer. The Improvements shall be completed substantially in accordance with the plans and specifications for the Improvements identified as _______ ________________________________________________________________ on file with _____________________ _______________________________________________________________, as the same may be modified from time to time pursuant to Part One, Paragraph 7, below. 4. Security. To secure the timely completion of the Improvements free of all liens and claims, the Subdivider/Developer has procured the issuance of the: Surety bond in the sum of _____________________________________________________ Dollars ($__________), to the Association, as obligee, American LegalNet, Inc. www.FormsWorkFlow.com RE 613 Page 2 of 6 Letter of credit in the sum of ___________________________ Dollars ($__________), to the Escrow Holder identified above, for the benefit of the Association, Set-aside letter in the sum of ___________________________ Dollars ($___________) ("Funds") to the Escrow Holder, for the benefit of the Association, A copy of which is attached to this Agreement as Exhibit "B", or Cash deposit in the sum of ___________________________ Dollars ($___________) has been deposited with the Escrow Holder for the benefit of the Association. The term "Security" as used in this Agreement refers to the cash deposit, surety bond, letter of credit, or set-aside letter identified above, together with any funds drawn thereunder held by the Escrow Holder. Subdivider/Developer warrants that, as of the date hereof, the amount set out in Exhibit "A" for each Improvement suffices for completion of the Improvement free of all liens and claims. 5. Improvements Account. If the Security is a set-aside letter, the funds set aside by the Issuer thereof ("Funds") will be retained in an account controlled and administered by the Issuer. The Subdivider/Developer hereby grants the Association a security interest in the Funds to secure the Subdivider's/Developer's performance of its obligations to the Association under this Agreement. Without the express written consent of the Association, the Subdivider/Developer shall not request or receive disbursement of any installment from the Improvements Account except for labor and materials actually performed or used in the construction of the Improvements for which the installment is requested. Ten percent (10%) or more of each installment or ten percent (10%) or more of the funds set-aside ("retention") shall be retained in the Improvements Account. Without the express written consent of the Association, the Subdivider/Developer shall not request or receive the disbursement of any portion of the retention until all of the Improvements have been completed, free of all liens and claims and (i) the statutory period for recording mechanics lien claims for the Improvements has expired, or (ii) the Association has been provided with a policy of title insurance, in an amount not less than the cost of the completed Improvements, insuring that the Improvements as completed are free of liens and claims. If at any time the funds in the Improvements Account are or become insufficient for completion of the Improvements, free of all liens and claims, sufficient additional funds to complete the Improvements lien free shall be deposited by or on behalf of Subdivider/Developer into the Improvements Account. 6. Delay in Completion. The Subdivider/Developer may extend for up to six months the time to complete the improvements as a result of delays caused by acts of God, of Independent contractors, inclement weather, labor trouble, acts of public utilities, public bodies, or inspectors (but not related to possible defects in contractor's performance), or other contingencies unforeseen by Subdivider/Developer and beyond Subdivider's/Developer's reasonable control. The Subdivider/Developer shall notify in writing the Commissioner, the Association and any escrow holder of such extension. The Subdivider/Developer may extend completion for longer periods of time upon approval of the Association. No extension under this section shall be effective unless the Subdivider/Developer assures that a security arrangement exists to cover such extension. 7. Plan Modifications. Subdivider/Developer shall have the right without the consent of the Association to make alteration to the plans
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