00-106 Dave Knapp housing agreement, 10346 Scenic BoulevardRECORDING REQUESTED BY
CornerStone Title
AND WHEN RECORDED MAIL DOCUMENT TO:
David Knapp
10300 Torre Ave
Cupertino, CA 95014
A.P.N.: 357 -08 -037
DOCUMENT: 21221957
111111111111111 Il'l 1111111I
Pages: 3
Fees.... 42.00
Taxes...
Copies.
AMT PAID 42.00
REGINA ALCOMENDRAS RDE # 007
SANTA CLARA COUNTY RECORDER 6/30/2011
Recorded at the request of 8 :00 AM
Cornerstone Title Company
Above This Une for Recorder's Use Only
File No.: SAR -2493 (ML )
SUBSTITUTION OF TRUSTEE AND FULL RECONVEYANCE
The Undersigned, present Beneficiary under that certain Deed of Trust dated 10/25/2000 executed
by David Knapp and Kay L. Knapp, individually and as trustees of the 2000 Knapp Family Trust,
as Trustor, to Fidelity National Title Company as original Trustee and recorded on 01/22/2001 as
Instrument No. 1S532377f in Book N /A, Page(s) N /A, Official Records of the County of Santa Clara,
State of California, HEREBY APPOINTS AND SUBSTITUTES THE UNDERSIGNED as the new and
substituted Trustee thereunder in accordance with the terms and provisions contained therein, whose
address is City Clerk's Office, City of Cupertino, 10300 Torre Avenue, Cupertino, CA 95014.
As such duly appointed and substituted Trustee thereunder, the undersigned DOES HEREBY RECONVEY
to the person or persons legally entitled thereto, without warranty all the estate, title and interest
acquired by the original Trustee and by the undersigned as the said substituted Trustee under said Deed
of Trust. Wherever the text of this document so requires, the singular includes the plural.
Dated: June 24, 2011
David Woo
Finance Director
Exhibit A
Real property in the City of CUPERTINO, County of Santa Clara, State of CA, described as follows:
Lot 26, as shown on that certain Map a Clara, which State of Cal fornia, on April ll, 1917a n filed for recor
of Maps atpage(s) 19ce
of the Recorder of the County of Santa
Excepting therefrom any portion of the land described in that Quitclaim Deed Recorded July 6, 1964 in Book 6670,
page 27, Official Records, Santa Clara County.
Also excepting therefrom the right to pump, take or otherwise extract water from the underground basin or any
underground strata as quitclaimed to the City of Cupertino in the deed recorded in the Office of the Santa Clara
County Recorders office on March 22, 1989 in Book K886, page 522, Official Records.
APN : 357 -08 -037
STATE OF )SS
COUNTY OF )
On_ju
me,
appeared
before
Notary Public, personally
who to me o the basis of
evidence to be the personal whose name(§) is /06 subscribed to tdhe within inst ument and satisfactory
acknowledged to me that he /sVe /tk6y executed the same in his /h,�Y /t�& authorized capacity(ie,4, and
that by his /hi/r/tVe-ir signature(�Yon the instrument the person(�Y, or the entity upon behalf of which the
person() 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 sea).
Siign�ature� I
My Commission Expires: 'Zp
US—
Notary Name /117 A
Notary Registration Number._
This area for official notarial seal
Notary Phone: q6F- 7 ? ? - 3 '?- zy
County of Principal Place of Business:L&ra—
GRACE SCHMIDT
Commission # 1923164
10 Notary Public - California
Santa Clara County
lb 92MR. res Fab 21, 2015
CORN R_STONE
Cornerstone Title Company
20520 Prospect Road,Suite 300
Saratoga, CA 95070
Fax - (408) 446 -4452
SALE CLOSING ESCROW INSTRUCTIONS
To: Cornerstone Title Company
Melanie Lo, Escrow Officer
File No.: SAR -2493 (ML)
Date: June 23, 2011
Estimated Closing Date: June 30, 2011
Re: 10346 Scenic Boulevard, Cupertino CA 95014 ( "Property ")
Lakshman Yagati and Anuradha Yagati ( "Buyer ")
The undersigned hand you funds and documents required to close escrow, and instruct you to do so under the
following terms and conditions, upon receipt of all such funds and documents, and when you are in a position to
issue a title insurance policy as described below.
Final Approvals: Buyer and Seller acknowledge that all conditions precedent have been released, approved
and /or waived and Escrow Holder is instructed to proceed to close this escrow.
Vesting: Buyer directs that title to the Property be vested as follows:
Lakshman Yagati and Anuradha Yagati
as:
Fire Insurance: The undersigned acknowledges lender's requirement of fire insurance coverage. Insurance
Agent and Company Name: Phone Number:
Policy /Endorsement is to be supplied prior to close of escrow. Escrow holder is
authorized and instructed to pay any premium due necessary to satisfy lender's requirements.
Title Approval: Buyer acknowledges that the Policy of Title Insurance for the Property will be subject to the
following without limitation:
All general and special taxes, assessments and /or bonds not delinquent.
Exceptions numbered 1 through 4, inclusive, as shown in the Preliminary
Report/Commitment dated June 3, 2011, issued in connection with this escrow, a copy of
which has been reviewed by Buyer.
3. Deed(s) of Trust executed by Buyer as part of this escrow (if applicable).
Estimated Settlement Statement: Upon Close of Escrow, Escrow Holder is instructed to disburse in
accordance with the executed Estimated Settlement Statement" and the Real Estate Settlement Procedures
Act, Appendix A to Part 3500 without further instruction from the parties hereto.
Escrow not responsible for payment of bills: The undersigned acknowledge that any charges for work or
inspections on the property are solely the responsibility of the parties to this escrow. Escrow Holder will not be
responsible for payment of or collection of payment from parties to this escrow for any bills submitted to escrow
other than those that have been approved for payment on the Buyer's, Seller's and Borrower's settlement
statements. If bills are submitted by Seller, Buyer or their agents after the settlement statements have been
approved, they will be charged to the respective party as verbally instructed by the submitting party.
Cornerstone Title Company File No.:SAR -2493 (M )
Page: : 2
Prorations: All prorations for the Property are to be handled in escrow as reflected on the "Estimated Settlement
Statement." The parties understand and agree that (1) Escrow Holder will not prorate municipal utilities, and (2) the
transfer of the utilities must be handled by the parties outside of escrow.
Warranty Regarding Encumbrances: The undersigned warrant and guarantee that there are no outstanding liens or
Deeds of Trust or Mortgages affecting the property, other than those shown on the preliminary report described
herein. Initials
Proceeds: Seller directs that the proceeds check be:
[ ] Held for pick up at this office
[ ] Mailed to the address below
[ ] Sent via certified mail
] Delivered to Seller's Agent
] Sent via next day mail
] Other:
[ ] Sent via wire transfer
(if checked, Attach wiring instructions of receiving bank)
Note: Receiving Banks may impose a charge for the receipt of any wire transfers.
Additional Agreements: The parties further agree to the following:
Funds Held Fee: In the event funds remain in escrow for any reason more than 90 days after the Close of Escrow,
or if escrow has not closed 90 days after the estimated closing date set forth in the existing escrow instructions to
Escrow Holder ( "Dormancy Period "), Escrow Holder will make reasonable efforts to notify the parties regarding same.
If funds remain in escrow beyond the Dormancy Period, a monthly "funds held fee" of $25.00 shall accrue for each
month or fraction of a month thereafter that the funds, or any portion thereof, remain in escrow. Escrow Holder
is instructed to deduct the monthly funds held fee directly from the funds held in escrow on a monthly or other periodic
basis (i.e. quarterly, semi - annually, etc.). The parties agree to pay these sums to compensate Escrow Holder for
administering, monitoring, accounting, reminders and other notifications and processing of the funds so held in
accordance with this provision.
Document/Funds Delivery: After Close of Escrow, all documents, funds and statements are to be sent to the
undersigned at the addresses provided to Escrow Holder.
Escrow General Provisions: The parties acknowledge receipt of the Escrow General Provisions which
are incorporated herein by reference.
Cornerstone Title Company
SELLER:
The 2000 Knapp Family Trust
By: David Knapp, Trustee
By: Kay L. Knapp, Trustee
City of Cupertino
By: Gilbert Wong, Mayor
Please indicate your forwarding address and phone number:
Home Phone:
Cell Phon
Work Phone:
Email Address:
File No.:SAR -2493 (ML)
Page: 3
Cornerstone Title Company
BUYER:
Lakshman Yagati
Anuradha Yagati
Please indicate your forwarding address and phone number:
Home Phone:
Cell Phone:
Work Phone: —
Email Address:
File No.:SAR -2493 (ML)
Page: 4
Addendum to Seller's estimated settlement statement on 10346 Scenic Blvd„ Cupertino,
CA 95014
Seller 1
City of Cupertino
Sales Price - $1,440,000
Ownership percentage - 77.5%
Payoff loan proceeds - $220,038.90
Sales proceeds - $1,055,448.80
Total amount due to City of Cupertino - $1,275,487.70
Seller 2
The 2000 Knapp Family Trust
Sales Price - $1,440,000
Ownership percentage — 22.5%
Loan payoff to City of Cupertino - $220,038.90
Sales proceeds to The 2000 Knapp Family Trust - $86,381.72
Seller's Signatures:
City of Cupertino
By: Gilbert Wong, Mayor
The 2000 Knapp Family Trust
David Knapp, Trustee
Kay L. Knapp, Trustee
O R E' ST NE
1:: C 0 N"I I' r4 v Y
CornerStone Title Company
20520 Prospect Road,Suite 300
Saratoga, CA 95070
Phone (408) 446 -4435 Fax (408) 446 -4452
Melanie.Lo @CSTitleCo.com
DISBURSEMENT OF SELLER'S NET PROCEEDS
Date: June 23, 2011
RE: 10346 Scenic Boulevard, Cupertino, CA 95014
Escrow No: SAR- 2493 -ML
THE UNDERSIGNED HEREBY INSTRUCTS ESCROW HOLDER TO DISBURSE THE NET PROCEEDS DUE AT
THE CLOSE OF ESCROW AS FOLLOWS: (PLEASE X AND /OR COMPLETE THE FOLLOWING:)
CALL WHEN CHECK IS READY FOR PICK UP. PHONE NUMBER TO CALL IS:
OVERNIGHT MAIL / U.S. MAIL (CIRCLE ONE) TO:
EMAIL FINAL CLOSING PACKAGE TO:
SEND CHECK C/O MY REAL ESTATE AGENT
SPLIT THE PROCEEDS AS FOLLOWS:
DISBURSE $ OR % PAYABLE TO:
AND MAIL TO:
DISBURSE $ OR % PAYABLE TO:
AND MAIL TO:
INVE AUTHORIZE THE PROCEEDS CHECK TO BE PICKED UP BY:
TRANSFER PROCEEDS TO ESCROW NO.:
ESCROW COMPANY:
PHONE NUMBER:
FAX NUMBER:
* * ** *URGENT NOTICE REGARDING WIRES * * * **
PLEASE CONTACT YOUR RECEIVING BANK TO OBTAIN CORRECT FED WIRING INSTRUCTIONS. VOIDED CHECKS AND
DEPOSIT SLIPS ARE NOT VALID WIRING INSTRUCTIONS. THE INSTRUCTIONS BELOW MUST BE COMPLETE (INCLUDING
CREDIT UNIONS AND MONEY MARKET ACCOUNTS). ANY INCOMPLETE OR INCORRECT INFORMATION WILL CAUSE A
DELAY IN WIRING.
WIRE PROCEEDS TO: (NAME OF BANK):
BANK ADDRESS:
ABA ROUTING NO.:
CREDIT ACCOUNT NO.:
ACCOUNT NAME:
SUB ACCOUNT NAME:
SUB ACCOUNT NUMBER:
IMPORTANT: Do NOT take this number from a copy of your check or deposit slip. Contact your Bank.
IT IS ACKNOWLEDGED THAT THE NET PROCEEDS CHECK WILL BE PAYABLE TO THE UNDERSIGNED BY TRUST
ACCOUNT CHECK UNLESS OTHERWISE INSTRUCTED. YOUR FINANCIAL INSTITUTION MAY NOT GIVE YOU IMMEDIATE
ACCESS TO A TRUST ACCOUNT CHECK. IF FUNDS ARE WIRED OR OVERNIGHT MAILED, SELLER FURTHER
ACKNOWLEDGES THE COST OF A WIRE OR OVERNIGHT MAIL FEE WILL BE CHARGED TO SELLER'S ACCOUNT.
The 2000 Knapp Family Trust
By: David Knapp, Trustee
O RN R -ST'tN E
By: Kay L. Knapp, Trustee
City of Cupertino
By: Gilbert Wong, Mayor
CornerStone Title Company
20520 Prospect Road,Suite 300
Saratoga, CA 95070
Phone (408) 446 -4435 Fax (408) 446 -4452
Melanie.Lo @CSTitleCo.com
IIIVA
1. I T' [ t'; t" 0 N1 V A :\
CornerStone Title Company
20520 Prospect Road,Suite 300
Saratoga, CA 95070
Phone (408) 446 -4435 Fax (408) 446 -4452
Melanie.Lo @CSTitleCo.com
DISBURSEMENT OF SELLER'S NET PROCEEDS
Date: June 23, 2011
RE: 10346 Scenic Boulevard, Cupertino, CA 95014
Escrow No: SAR- 2493 -ML
THE UNDERSIGNED HEREBY INSTRUCTS ESCROW HOLDER TO DISBURSE THE NET PROCEEDS DUE AT
THE CLOSE OF ESCROW AS FOLLOWS: (PLEASE X AND /OR COMPLETE THE FOLLOWING:)
CALL WHEN CHECK IS READY FOR PICK UP. PHONE NUMBER TO CALL IS:
OVERNIGHT MAIL / U.S. MAIL (CIRCLE ONE) TO:
EMAIL FINAL CLOSING PACKAGE TO:
SEND CHECK C/O MY REAL ESTATE AGENT
SPLIT THE PROCEEDS AS FOLLOWS:
DISBURSE $ OR % PAYABLE TO:
AND MAIL TO:
DISBURSE $ OR % PAYABLE TO:
AND MAIL TO:
INVE AUTHORIZE THE PROCEEDS CHECK TO BE PICKED UP BY:
TRANSFER PROCEEDS TO ESCROW NO.:
ESCROW COMPANY:
PHONE NUMBER:
FAX NUMBER:
* * ** *URGENT NOTICE REGARDING WIRES * * * **
PLEASE CONTACT YOUR RECEIVING BANK TO OBTAIN CORRECT FED WIRING INSTRUCTIONS. VOIDED CHECKS AND
DEPOSIT SLIPS ARE NOT VALID WIRING INSTRUCTIONS. THE INSTRUCTIONS BELOW MUST BE COMPLETE (INCLUDING
CREDIT UNIONS AND MONEY MARKET ACCOUNTS). ANY INCOMPLETE OR INCORRECT INFORMATION WILL CAUSE A
DELAY IN WIRING.
WIRE PROCEEDS TO: (NAME OF BANK):
BANK ADDRESS:
ABA ROUTING NO.:
CREDIT ACCOUNT NO.:
ACCOUNT NAME:
SUB ACCOUNT NAME:
SUB ACCOUNT NUMBER:
IMPORTANT: Do NOT take this number from a copy of your check or deposit slip. Contact your Bank.
IT IS ACKNOWLEDGED THAT THE NET PROCEEDS CHECK WILL BE PAYABLE TO THE UNDERSIGNED BY TRUST
ACCOUNT CHECK UNLESS OTHERWISE INSTRUCTED. YOUR FINANCIAL INSTITUTION MAY NOT GIVE YOU IMMEDIATE
ACCESS TO A TRUST ACCOUNT CHECK. IF FUNDS ARE WIRED OR OVERNIGHT MAILED, SELLER FURTHER
ACKNOWLEDGES THE COST OF A WIRE OR OVERNIGHT MAIL. FEE WILL BE CHARGED TO SELLER'S ACCOUNT.
The 2000 Knapp Family Trust
By: David Knapp, Trustee
CO RN E BSTO N E
to-
By: Kay L. Knapp, Trustee
City of Cupertino
By: Gilbert Wong, Mayor
CornerStone Title Company
20520 Prospect Road,Suite 300
Saratoga, CA 95070
Phone (408) 446 -4435 Fax (408) 446 -4452
Melanie.Lo @CSTitleCo.com
Cornerstone Title Company
20520 Prospect Road,Suite 300 , Saratoga CA 95070
Phone: (408) 446 -4435 Fax: (408) 446 -4452
To: Cornerstone Title Company
Melanie Lo, Escrow Officer
Re: 10346 Scenic Boulevard, Cupertino CA 95014• ( "Property")
Seller: The 2000 Knapp Family Trust
File No.: SAR -2493 (ML)
Date: June 23, 2011
1099 -S INPUT FORM for IRS Reporting
Why is this form required? Seller(s) of real property are required by law to provide the real estate reporting entity with your correct Social Security/Taxpayer
Identification Number ( "SSN/TIN "). By not providing your real estate reporting entity with your correct SSN/TIN, you may be subject to civil or criminal
penalties imposed by law under the Tax Reform Act of 1986 under Internal Reven ae (IRS) Code Section 6045(E), 6676, 6722, 6723 and 7203.
Each Seller must complete a separate 1099 -S Input Form. Domestic corporations are exempt from reporting.
Husband and wife who file a ioint tax return should complete only y one 1099-S Input Form with one social security number.
Social Security Number
Name /Entity (for IRS Reporting of SSN or TIN)
Forwarding Street Address (after closing):
Taxpayer Identification Number
OR
City State CA _ Zip Code Country USA
1. Have you owned and used the property as your principal residence for periods
totaling at least two (2) out of the last five (5) years? ❑ Yes ❑ No
2. I did not acquire the property or any interest in the property in a 1031 exchange
during the last five (5) years. ❑Yes ❑ No
3. Is the sales price of the property less than $250,000? ❑ Yes ❑ No
4. Are you married and the sales price is $500,000 or less? ❑ Yes ❑ No
If you answered 'Yes'to question #1 and #2 and 'Yes'to either question #3 or #4 then you MUST COMPLETE the
'Certification for No Information Reporting' form. Ifjrou answer a #questions "True"on the'Certification for No
Information Reporting' form you may be exempt from 1099 reporting.
5. What is your percentage or amount of ownership /sales price in the property?
❑ 100% ❑ Other % or $ (If other than 100% - see question #6 to name other owners)
6. If your answer to question #5 is not 100%, you must provide the Name /Entity for IRS Reporting of other owners and their Ownership
Percentage or Amount.
• Name /Entity for reporting Ownership % or $
• Name /Entity for reporting Ownership % or $
• Name /Entity for reporting Ownership % or $
Under .penalties of perjury, I certify that the above information is correct.
Your Signature
i�rrcr� crfe Ai / CC/ / =DC
FLCAJC !YV 1 c / rrA i i v »--� Ai rw • •
For Escrow Use Only - Additional File Information
Is Property part of an Exchange?
[ ] Change No. of 1099 -S Forms Is Name/Entity Party a'Non- Record' Seller? [ ]
[ ] Void required for this file?
Type is: [ ] H/W or Individual ( ] Trust/Business [ ]YES [ ] NO
[ ] Delete [ ]
For Escrow Use Only - Required for , 1099 -S Data Entry Only (No entry,in FAST)
] Add
Contract Sales Price
Bu er's Part of Real Estate Tax
Actual Settlement Date
[
L ] Change
$
$
Delete
Kev. a /w /uo
Region: California FAST Office: 7101 (2151) (HM)
Seller: The 2000 Knapp Family Trust File No.: SAR -2493 (ML )
Re: 10346 Scenic Boulevard, Cupertino CA 95014
Date: June 23, 2011
CERTIFICATION FOR NO INFORMATION REPORTING
ON THE SALE OR EXCHANGE OF A PRINCIPAL RESIDENCE
This form may be completed by the seller of a principal residence. This information is necessary to determine whether the sale or exchange should be
reported to the seller, and to the Internal Revenue Service on Form 1099 -S, Proceeds From Real Estate Transactions. If the seller properly completes
Parts I and III, and makes a "true" response to assurances (1) through (6) in Part II (or a "not applicable" response to assurance (6)), no information
reporting to the seller or to the Service will be required for that seller. The term "seller" includes each owner of the residence that is sold or
exchanged. Thus, if a residence has more than one owner, a real estate reporting person must either obtain a certification from each owner (whether
married or not) or file an information return and furnish a payee statement for any owner that does not make the certification.
PART I. SELLER INFORMATION
1. Name
2. Address or legal description (including city, state and ZIP code) of residences being sold or exchanged
10346 Scenic Boulevard, Cupertino CA 95014
3. Taxpayer Identification Number (TIN)
PART II. SELLER ASSURANCES
Check "true" or "false" for assurances (1) through (5), and "true ", "false ", or "not applicable" for assurance (6).
True False
❑ F1
(1) I owned and used the residence as my principal residence for periods aggregating 2 years or more
during the 5 -year period ending on the date of the sale or exchange of the residence.
ED
(2) I have not sold or exchanged another principal residence during the 2 -year period ending on the
exchange of the residence.
date of the sale or
(3) I (or my spouse or former spouse, if I was married at any time during the period beginning after
6, 1997, ending today) have not used any portion of the residence for business or rental
May and
purposes after May 6, 1997.
(4) At least one of the following three statements applies:
The sale or exchange is of the entire residence for $250,000 or less.
OR
I am married, the sale or exchange is of the entire residence for $500,000 or less, and the gain on
the sale or exchange of the entire residence is $250,000 or less.
OR
I am married, the sale or exchange is of the entire residence for $500,000 or less, and (a) I intend
to file a joint return for the year of the sale or exchange, (b) my spouse also used the residence as
his or her principal residence for periods aggregating 2 years or more during the 5 -year period
ending on the date of the sale or exchange of the residence, and (c) my spouse also has not sold
or exchanged another principal residence during the 2 -year period ending on the date of the sale
or exchange of the residence.
(5) During the 5 -year period ending on the date of the sale or exchange of the residence, I did not
to which section 1031 of the Internal Revenue Code applied.
I J
acquire the residence in an exchange
T, rue False N/A
(6) If my basis in the residence is determined by reference to the basis in the hands of a person who
acquired the residence in an exchange to whi-.h section 1031 of the Internal Revenue Code
applied, the exchange to which section 1031 applied occurred more than 5 years prior to the date I
sold or exchanged the residence.
PART III. SELLER Certification
under penalties of perjury, I certify that all the above information is true as of the end of the day of the sale or exchange.
Signature of Seller
Date
(NOTE: IF SELLER IS MARRIED, SELLER'S SPOUSE COMPLETE SPRINCIPAL A SEPARATE E CERTIFICATION FOR NO INFORMATION REPORTING ON
E SALE OR EXCHANGE A
COKNERSTONE
'I t 'f t_. I'. s' ..0 M V A N V
Cornerstone Tittle Company
20520 Prospect Road,Suite 300 , Saratoga CA 95070
Phone: (408) 446 -4435 Fax: (408) 446 -4452
To: Cornerstone Title Company File No.: SAR -2493 (ML)
Melanie Lo, Escrow Officer Date: June 23, 2011
Re: 10346 Scenic Boulevard, Cupertino CA 95014 ("Property ")
Seller: The City of Cupertino
1099 -S INPUT FORM for IRS Reporting
Why is this form required? Seller(s) of real property are required by law to provide the real estate reporting entity with your correct Social Security/Taxpayer
Identification Number ( "SSN/TIN "). By not providing your real estate reporting entity with your correct SSN/TIN, you may be subject to civil or criminal
penalties imposed by law under the Tax Reform Act of 1986 under Internal Reverue (IRS) Code Section 6045(E), 6676, 6722, 6723 and 7203.
Each Seller must complete a separate 1099 -S Input Form. Domestic corporations are exempt from reporting.
Husband and wife who file a ioint tax return should complete only one 1099 -S Input Form with one social security number.
Social Securitv Number Taxp a er Identification Number
OR
Name /Entity (for IRS Reporting of SSN or TIN)
Forwarding Street Address (after closing):
City
State CA
Zip Code
Country USA
1. Have you owned and used the property as your principal residence For periods
totaling at least two (2) out of the last five (5) years? ❑ Yes ❑ No
2. I did not acquire the property or any interest in the property in a 101 exchange
during the last five (5) years. ❑ Yes ❑ No
3. Is the sales price of the property less than $250,000? ❑ Yes ❑ No
4. Are you married and the sales price is $500,000 or less? ❑ Yes ❑ No
If you answered 'Yes'to question #1 and #Z and 'Yes'to either question #3 or #4 then you MUST COMPLETE the
'Certification for No Information Reporting' form. If,vou answer all questions "True'on the'Certification for No
Information Reporting' form you may be exempt from 1099 reporting.
5. What is your percentage or amount of ownership /sales price in the property?
❑ 100% ❑ Other % or $ (If other than 100% - see question #6 to name other owners)
6. If your answer to question #5 is not 100%, you must provide the Name /Entity for IRS Reporting of other owners and their Ownership
Percentage or Amount.
• Name /Entity for reporting Ownership % or $.
• Name /Entity for reporting Ownership % or $
• Name /Entity for reporting Ownership % or $
Underpena /ties of perjury, I certify that the above information is correct.
Your Signature
-
M �A cc M^rc rue r Moo -c I,AJVUr FnaMC mzww BE SUBMITTED FOR ALL SELLERS.
Rev.8 /07/06
Region: California FAST Office: 7101 (2151) (HM)
For Escrow Use Only dditional Filelnformation
Y—
[ ]Change
No. of 1099 -5 Forms
Is Name/Entity Party a'Non- Pecord' Seller. [ ]
Is Property part of an Exchange?
[ ] Vold
[ ] Delete
required for this file?
[ ]
Type is: [ ] H/W or Individual [ ] Trust/Business
[ ]YES [ ] NO
For Escrow Use Only - Required for 1099 -5 Data Entry Only
[ ] Add
Contract Sales Price
Buyer's Part of Real Estate Tax
Actual Settlement Date
$
$
[ ] Change
Delete
Rev.8 /07/06
Region: California FAST Office: 7101 (2151) (HM)
TAXABLE YEAR
CALIFORNIA FORM
2011 Real Estate Withholding Tax Statement 593
• AMENDED:
Part I Withholding Agent
Business name SSN or ITIN ❑FEIN ❑ CA Corp no. � SOS file no
Cornerstone Title Company 33- 0955745
First name
Address (suite, room,
20520 Prospect Roa
City
Seller or I i
First name
Box, or PMB no.)
cite 300
Spouse's /RDP's first name
Business name (if applicable)
nitiall Lastname
nitiall Last name
nitiall Last name
Address (apt. /suite, room, PO Box, or PMB no.)
City
Property address (if no street address, provide parcel number and county)
10346 Scenic Boulevard, Cupertino CA 95014
Part 11 Escrow or Exchange Information
1
2
ZIP Code
95070
SSN or ITIN
0 Spouse's /RDP's SSN or ITIN
FEIN DCA Corp no. DSOS file no.
Code
Ethan a Number ....... ..............I................ 61
SAR -2493
Escrow or x g • •
Date of Transfer, Exchange Completion, Exchange Failure, or Installment Payment ................ •2
3. Type of Transaction (Check One Only):
AF-1 Conventional Sale or Transfer BF_J Installment Sale Payment C [:] Boot
MM -DD -YY
D [:] Failed Exchange
4. Withholding Calculation (Check One Only):
Total Sales Price Method
AF� 3 1/3 % (.0333) x Total Sales Price (See instructions. Sigrature not required below)
Optional Gain on Sale Election (Signature required below)
B� Individual 9.3% x Gain on Sale E� Bank and Financial Corp. 10.84% x Gain on Sale
CF-] Non - California Partnership 9.3% x Gain on Sale F[7 S Corporation 10.8% x Gain on Sale
DF-1 Corporation 8.84% x Gain on Sale G [7 Financial S Corporation 12.8% x Gain on Sale
5. Amount Withheld from this Seller ............................. • 5
Mail completed Form 593 and payment, along with Form 593 -V,
Payment Voucher for Real Estate Withholding, to:
FRANCHISE TAX BOARD
PO BOX 942867
SACRAMENTO CA 94267 -0651
Part III Perjury Statement - Signature is required when the Optional Gain on Sale is elected above.
Title and escrow persons, and exchange accommodators are not authorized to provide legal or accounting advice for purposes of
determining withholding amounts Transferors are strongly encouraged to consult with a competent tax professional for this purpose.
Under penalties of perjury, I hereby certify that the Information provided above is, to the best of my knowledge, true and correct. I
understand that the Franchise Tax Board may review relevant escrow documents to ensure withholding compliance. I understand
that if this form is not signed, the amount of withholding will be 3 1/3% (.0333) of the total sales price.
If paying by EFT mail Form 593 to:
FRANCHISE TAX BOARD
PO BOX 942867
SACRAMENTO CA 94267 -8888
11
Your signature
It is unlawful to X
forge a Seller's email address(optional)
spouse's /RDP's
signature.
Spouse's /REIP's signature
X
Preparer's name and Title /Escrow business name
Melanie Lo Cornerstone Title Company
For Privacy Notice, get form FTB 1131. —, 7111113 I —
Date
Telephone Number
Form 593 C2 2010
Instructions for 593
Real Estate Withholding Tax Statement
Round Cents to Dollars
Identification Numbers —Check to see
What's New
Round cents to the nearest whole dollar.
that the withholding agent's and seller's
For example, round $50.50 up to $51 or
identification numbers are correct and
round $25.49 down to $25. If you do not
listed in the same order as the names. If
round, the Franchise Tax Board (FTB)
both a husband /RDP and wife /RDP are
will disregard the cents,
listed, make sure both social security
Electronic Filing Requirements
numbers (SSNs) or individual taxpayer
Form 593 information may be filed with
identification numbers (ITINs) are listed in
the FTB electronically, iising FTB's
the same order as their names.
Secure Web Internet File Transfer
Trusts and Trustees — It is important to
(SWIFT), instead of paper. However,
report the correct name and identification
withholding agents must continue to
number when title is held in the name of a
provide the seller or transferor with paper
trust. If the seller is a trust, see the
Form 593.
Specific Line Instructions on page 2 for
For electronic filing, submit your file
Seller or Transferor.
using the SWIFT process as outlined in
Preparer's Name and title /Escrow
FTB Pub, 923, Secure Web Internet File
Business Name — Provide the preparer's
Transfer (SWIFT) Guide for Resident,
Nonresident, and Real Estate
name and
title /escrow's business name and phone
Withholding.
number.
For the required file format and record
B Who Must File
layout for electronic filing, get FTB Pub.
Any person who withheld on the sale or
1023R, Real Estate W thholding
transfer of California real property during
Electronic Submission Requirements. If
the calendar month must file Form 593 to
you are the preparer for more than one
report, and Form 593 -V to remit the
withholding agent, provide a separate
amount withheld. Normally, this will be the
electronic file for each withholding agent.
title company, escrow company,
For electronic filing submit your payment
intermediary, or accommodator.
using Electronic Funds Transfer (EFT) or
Generally, the buyer will only complete
Form 593 -V.
these forms when reporting the
When remitting payments by EFT, mail a
withholding on installment payments.
copy of Form 593 to the following
C When and Where to File
You need three completed copies of Form
address:
593 for filing and distribution. On the
FRANCHISE TAX BOARD
principal portion of the first installment
PO BOX 942867
payment, file a copy of Form 593, Form
SACRAMENTO CA 94267 -8888
593 -1, and Form 593 -V, including a copy
of the promissory note, and pay the
'thh Id 'thin 20 da s
A Purpose
Use Form 593 to report real estate
withholding on sales closing in 2011, on
installment payments made in 2011, or
on exchanges that were completed or
failed in 2011.
Use a separate Form 593 to report the
amount withheld from each seller. If the
sellers are married or RDPs and they
plan to file a joint return, include both
spouses /RDPs on the: same Form 593.
If the sellers are married or RDPs and
they are entered as one seller, we treat
them as having equal ownership interest.
If the ownership interest is not equal,
separate Forms 593 need to be filed for
each individual to represent the correct
interest percentage. If the information
submitted is incorrect, an amended Form
593 must be submitted to the FTB by the
withholding agent.
Use Form 593 -V to remit your
withholding payment to the FTB. You
must use Form 593 -V when remitting a
payment by check or money order. You
may also have your payments
automatically withdrawn from your bank
account via EFT.
amount of tax VV e wi y
following the end of the month in which
the transaction occurred. Mail to:
FRANCHISE TAX BOARD
PO BOX 942867
SACRAMENTO CA 94267 -0651
Distribute the other two copies of Form
593
as follows:
• Send one copy to sellers within 20
days following the end of the month in
which the transaction occurred.
• One copy will be retained by the
withholding agent for a minimum of five
years and must be provided to the FTB
upon request.
D Interest and Penalties
Interest will be assessed on late
withholding payments and is computed
from the due date to the date paid. If the
real estate escrow person does not notify
the buyer of the withholding requirements
in writing, the penalty is the greater of
$500 or 10% of the required withholding.
If the buyer (after notification) or other
withholding agent does not withhold, the
Decrease in Tax Rates - For taxable
years beginning on or after January 1,
2011, the maximum personal income tax
rate is 9.3 %. In addition, non-California
partnerships are subject to withholding
requirements on a sale of California real
property at a rate of 3 1/3% (.0333) of
sales price or 9.3% of gain. The
alternative withholding rate for the gain
on sale of California real property by S
corporations is 10.8% and 12.8% for
Financial S corporations.
For taxable years beginning January 1,
2010, use Form 593, Real Estate
Withholding Tax Statement, to report real
estate withholding and use Form 593 -V,
Payment Voucher for Real Estate
Withholding, to submit real estate
withholding payments when Form(s) 593
is submitted electronically or by mail.
See General Information, A Purpose, for
more information.
Form 593 is now a single page form.
Although Copies A, B, and C have been
eliminated you must still complete, file,
and distribute three copies of Form 593.
See General Information, C When and
Where to File, for more information.
General Information
Installment Sales - For installment sales
occurring on or after January 1, 2009,
buyers are required to withhold on the
principal portion of each installment
payment if the sale of California real
property is structured as an installment
sale.
Registered Domestic Partners (RDP) -
Under California law, RDPs must file
their California income tax returns using
either the married /RDP filing jointly or
married /RDP filing separately filing
status. RDPs have the same legal
benefits, protections, and responsibilities
as married couples unless otherwise
specified.
If you entered into a same sex legal
union in another state, other than a
marriage, and that union has been
determined to be substantially equivalent
to a California registered domestic
partnership, you are required to file a
California income tax return using either
the married /RDP filing jointly or
married /RDP filing separately filing
status.
For purposes of California income tax,
references to a spouse, husband, or wife
also refer to a California RDP, unless
otherwise specified. When we use the
initials RDP they refer to both a
California registered domestic "partner"
and a California registered domestic
"partnership," as applicable. For more
information on RDPs, get FTB Pub. 737,
Tax Information for Registered Domestic
Partners.
Form 593 2010 Pagel
Common Errors
Year of Form - The year (at the top) of
Form 593 must be the same as the year
on line 2. See instructions for line 2. If
you do not have Form 593 with the
correct year, go to
ftb.ca.gov to get the correct form.
penalty is ine greater vi �Pouv ur iv7o vi
the required withholding.
IT the wannoiaing agern uueb I wi
furnish complete and correct copies of
Form 593 to the FTB by the due date,
but does file them within 30 days of the
due date, the penalty is $15 per Form
593. If Form 593 is filed more than 30
days but less than 180 days after the
due date, the penalty is $30 per Form
593. If Form 593 is filed more than 180
days after the due date, the penalty is
$50 per Form 593. If the failure is due
to an intentional disregard of the
requirement, the penalty is the greater
of $100 or 10% of the required
withholding.
If the withholding agent does not
furnish complete and correct copies of
Form 593 to the seller by the due date,
the penalty is $50 per Form 593. If the
failure is due to an intentional
disregard of the requirement, the
penalty is the greater of $100 or 10%
of the required withholding.
E Amending Form 593
To amend Form 593:
• Complete a new Form 593 with the
correct information.
• Check the "Amended" box at the
top of the revised form.
• Include a letter explaining what
changes were made and why.
• Mail the amended form and letter
to:
FRANCHISE TAX BOARD
PO BOX 942867
SACRAMENTO CA 94267 -0651
Whenever an amended Form 593 is
provided to the FTB, each affected
seller should also be provided with a
copy. Be sure to check the "Amended"
box at the top of the revised form.
Amended forms can only be filed by
the withholding agent. If a seller
notices an error, the seller should
contact the withholding agent.
Do not file an amended Form 593 to
cancel the withholding amount for a
Form 593 11C, Real Estate Withholding
Certificate, filed after the close of
escrow. After escrow has closed,
amounts withheld may be recovered
only by claiming the withholding as a
credit on the appropriate year's tax
return. Get Form 593 -C for more
information.
Instructions for Seller
This withholding of tax does not relieve
you from the requirement to file a
California income tax return and report
the sale within three months and fifteen
days (two months and fifteen days for
a corporation) after the close of your
taxable year.
You may be assessed penalties if:
You do not file a tax return.
• You file your tax return late.
• The amount of withholding
does not satisfy your tax liability.
r1UVV %V V IGO LI a is r r nni rvwu iy
To claim the withholding credit, report
the sale or transfer as required and
enter the amount from lin a 5 on the
withholding line on your tax return,
Withholding (Form 592 -B and /or 593).
Attach one copy of Form(s) 593, to the
lower front of your California tax return.
Make a copy for your records.
If- withholding was done for a failed — - -
exchange or on boot in the year
following the year the prc perty was sold,
the withholding is shown as a credit for
the taxable year the withholding
occurred since you quality for
installment sale reporting. If you elect to
report the gain in the year the property
was sold, instead of in the year you
received the payment, contact the FTB
at 888.792.4900 prior to filing your
California tax return for instructions to
have the credit transferred to the prior
year.
Specific Instructions
Foreign Address - Enter the information
in the following order: City, Country,
Province /Region, and Postal Code.
Follow the country's practice for entering
the postal code. Do not abbreviate the
country's name.
Part I - Withholding Agent
Enter the business or individual
withholding agent's narre, mailing
address, and identification number of
the withholding agent (payer /sender).
Enter the SSN or ITIN only when the
buyer, who is an individual, is sending
the withholding payment. Include the
Private Mail Box (PMB) in the address
field. Write "PMB" first, then the box
number. Example: 111 Main Street PMB
123.
Seller or Transferor
Enter the individual or business name (if
applicable), mailing address, and
identification number of the seller or
transferor. Include the 13MB in the
address field. Write "PMB" first, then the
box number. Example: 111 Main Street
PMB 123. If the seller has applied for an
identification number, but it has not been
received, enter, "Applied For" in the
space for the seller's ID and attach a
copy of the federal application behind
Form 593.
If the seller is an individual, enter the
SSN or ITIN. If the sellers are
husband /RDP and wife: /RDP and plan to
file a joint return, enter the name and
SSN or ITIN for each spouse /RDP.
Otherwise, do not enter information for
more than one seller. Instead, complete
a separate Form 593 for each seller.
If the seller is a business, enter the
business name in the business name
field along with the federal employer
identification number (FEIN), CA Corp
number, Secretary of State (SOS) file
number. If the seller is a grantor trust,
enter the grantor's individual name and
SSN or ITIN. Do not enter the name of
sale and claim the withholding on the
individual's tax return.
If the seller is a non - grantor trust, enter
the name of the trust and the trust's
FEIN. If the trust has not applied for a
FEIN, leave the identification number
blank. Do not enter the trustee
information.
If the seller is a single member
disregarded LLC, enter the name and
identification number of the single
member.
For all other non - individual sellers, enter
the FEIN, CA Corp number, SOS file
number.
Enter the address (or parcel number
and county) of the California real
property transferred.
Conventional Sale or Transfer and
Installment Sales: Enter the address
(parcel number and county) of the
transferred property.
Exchanges: Enter the address of the
relinquished property.
Part II — Escrow or Exchange
Information
Line 1 — Escrow or Exchange Number
Enter the escrow or exchange number
for the property transferred.
Line 2 — Date of Transfer, Exchange
Completion, Exchange Failure, or
Installment Payment
Conventional Sale or Transfer: Enter
the date escrow closed.
Installment Sales: For withholding on
the first installment payment, enter the
date escrow closed. For withholding on
the principal portion of each installment
payment, enter the date of the
installment payment.
Exchanges: For completed exchanges,
enter the date that the boot (cash or
cash equivalent) was distributed to the
exchanger. For failed exchanges, enter
the date when it was determined that
the exchange would not meet the
deferred exchange requirements and
any cash was distributed to the seller.
When withholding on boot or a failed
exchange, be sure to use the forms for
the year that you entered on line 2
(rather than the year of the sale), since
the seller will be able to use installment
sale reporting for the gain.
Line 3 — Type of Transaction
Check one box that represents the type
of real estate transaction for which the
withholding is being calculated.
Conventional Sale or Transfer: Check
this box if the conventional sale or
transfer represents the close of escrow
for the real estate transaction. This sale
or transfer does not contain any
conditions such as an installment sale,
boot, or failed exchange.
Installment Sale Payment: Check this
box if you are withholding on either the
principal portion of the first installment
payment during escrow or on the
principal portion of
a subsequent installment payment
Failed Exchanges:
Part III - Perjury Statement
Complete the Seller's and Preparer's
information. A signature is only required if
including the final payoff in escrow. Attach
a copy of the promissory note with the
a. Total Sales Pnce. If a deferred
C. Installment Withholding Percent,
first installment payment.
exchange is not completed or does not
divide line a by line b .............. _
Boot: Check this box if the seller intends
meet the deferred requirements, enter the
Preparer's Name and Title /Escrow
to complete a deferred exchange, but
total sales price .............. • • •
$
With the principal portion of the first
receives boot (cash or cash equivalent)
be applied to all installment payments,
installment payment, attach a copy of the
out of escrow.
Failed Exchange: Check this box for any
b. Ownership Percentage. If
promissory note to the original Form 593
that be sent to the FTB.
failed exchange, including if a failed
multiple transferors attempted to
will
deferred exchange had boot withheld
upon in the original relinquished property.
exchange this property, enter this seller's
ownership percentage. Otherwise,
Exchanges:
Line 4 — Withholding Calculation
enter 100.00% ........... _ _ _ .— _ %
a. Boot Amount. Not to
Check one box that represents the
method to be used to calculate the
C. Amount Subject to Withholding.
exceed recognized gain .. $
withholding amount on line 5. Either the
Multiply line a by line b ..........
Withholding Amount. Multiply
Total Sales Price Method (31/3% (.0333)
$
lne a by the applicable tax rate" and
line
of the sale price) or the Optional Gain on
Sale Election based on the applicable tax
d. Withholding Amount. Multiply line
enter the result here and on Form 593,
$
rate as applied to the gain on sale. Check
c by 3 1/3% (.0333) and enter the result
line 5 .................
only one box, A -G.
here and on Form 593 line 5 .......
$
Failed Exchanges:
Line 5 — Amount Withheld
Enter the amount withheld from this
transaction or installment payment based
Withholding Amount Using Optional Gain
a. Gain on Sale from
upon the appropriate calculation for either
on Sale Election
Form 593 -E, line 16 ..... .
$
the Total Sales Price or the Optional Gain
on Sale Election, below.
Conventional Sale or Transfer: Enter the
b. Ownership Percentage. If
Withholding Amount Using Total Sales
amount from Form 593 -E, Real Estate
Withholding — Computation of Estimated
multiple transferors attempted to
Price
Conventional Sale or Transfer:
Gain
or Loss, line 17 on Form 593, line 5.
exchange this property, enter this seller's
ownership percentage. Otherwise,
a. Total Sales Price .........
enter 100.00% ........ .. _ _ _ .--%
b. Enter the seller's
ownership percentage ...... _ _ _ ._ _%
C. Amount Subject to Withholding.
Multiply line a by line b and
enter the result ..........$
d. Withholding Amount. Multiply
line c by 3 1/3% (.0333) and enter the
result here and on Form 593, line 5 . .
Installment Sales:
a. Amount Subject to Withholding
If you are withholding on the first
installment payment in escrow,
enter the required amount of the first
installment payment. If you are
withholding on subsequent installment
payments, enter the principal
portion of the payment ... . $
Installment Sales: The Installment
Withholding Percent is applied to the
principal portion of all installment
payments, including the first installment
payment received during escrow to
determine the gain on sale. The gain on
sale is then multiplied by the seller's
applicable tax rate to determine the
withholding amount.
You must complete the calculation under
Installment Withholding Percent first, in
the next column, to determine the
withholding percentage needed to
complete the withholding amount in item
C.
C. Amount Subject to Withholding.
Multiply line a by line b ..........
d. Withholding Amount. Multiply
line c by the applicable tax rate* and enter
the result here and on Form 593, line 5
If a failed deferred exchange had boot
withheld upon in the original relinquished
property, reduce the withholding amount
by the amount previously remitted to the
FTB.
*Tax Rates
a. Installment Payment ......
$ Individual 9.55%
Non - California Partnership 9.55%
b. Gain on Saba, multiply line a by Corporation 8.84%
the Installment Withholding Percent Bank and Financial Corporation 10.84%
(calculated in the ne )(t column) ....... S Corporation 11.05%
$ Financial S Corporation 13.05%
b. Withholding Amount. Multiply
line a by 3 1/3% (.0333) and enter the
C. Withholding Amount. Multiply line
Part III - Perjury Statement
Complete the Seller's and Preparer's
information. A signature is only required if
result here and on Form 593, line 5 ...
b by the applicable tax rate* and enter the
result here and on Form 593, line 5
the Optional Gain On Sale Election
$
$
method is used.
Exchanges:
Installment Withholding Percent
Preparer's Name and Title /Escrow
a. Amount Subject to Withholding.
Complete this calculation for the
Installment Withholding Percent that will
Business Name
Provide the preparer's name and
For completed deferred exchanges,
enter the amount of boot (cash or
be applied to all installment payments,
title /escrow's business name and phone
cash equivalent) received by the
including the first installment payment
number.
seller $
received during escrow. If withholding on
..................
the principal portion of each installment
b. Withholding Amount. Multiply
payment, the seller roust provide the
line a by 3 1l3% (.0333) and enter the
result here and on Form 593, line 5 ....
buyer with the Installment Withholding
Percent to be included on Form 593 -I,
$ Real Estate Withholding Installment Sale
Acknowledgement. If withholding on the
first installment payment is received
during escrow, then compute the percent
as follows:
a. Gain on Sale from
Form 593 -E, line 16 ....... $
b. Selling Price Pom
Form 593 -E, line 1 ....... $
Form 593 2010 Page 3
Additional Information
For more information on real estate
withholding, get FTB Pub. 1016, Real
Estate Withholding Guidelines. To get a
withholding form or publication, or to speak
to a representative, contact our Withholding
Services and Compliance's automated
telephone service at:
888.792.4900, or
916.845.4900
FAX 916.845.9512
Or write to:
WITHHOLDING SERVICES AND COMPLIANCE
FRANCHISE TAX BOARD
PO BOX 942867
SACRAMENTO CA 94267 -0651
You can download, view, and print California
tax forms and publications at ftb.ca.gov.
Or to get forms by mail, write to:
TAX FORMS REQUEST UNIT
FRANCHISE TAX BOARD
PO BOX 307
RANCHO CORDOVA CA 95741 -0307
For all other questions unrelated to withholding
or to access the TTY/TDD number, see the
information below
Internet and Telephone Assistance
Website: ftb.ca.gov
Phone: 800.852.5711 from within the
United States
916.845.6500 from outside the
United States
TTY/TDD: 800.822.6268 for persons with
hearing or speech impairments
Asistencia Por Internet y Telefono
Sitio web: ftb.ca.gov
Telefono: 800.852.5711 dentro de los
Estados Unidos
916.845.6500 fuera de los Estados
Unidos
TTY/TDD: 800.822.6268 personas con
discapacidades auditivas y del habla
Page 4 Form 593 2009
YEAR
2011 Real Estate Withholding Certificate
CALIFORNIA FORM
593 -C
Part I — Seller's Information Return this form to your escrow company.
Name
SSN or ITIN
The City of Cupertino
Spouse's /RDP's name (if jointly owned)
Spouse's /RDP's SSN or ITIN (if jointly owned)
Address (suite, room, PO Box, or PMB no.)
FEIN CA Corp no. [—] SOS file no.
City
State
ZIP Code
Ownership Percentage
CA
Property address (if no street address, provide parcel number and county)
10346 Scenic Boulevard, Cupertino CA 95014
To determine whether you qualify for a full or partial withholding exemption, check all boxes that apply to the property being sold or transferred.
(See line -by -line notes in the Instructions)
Part II - Certifications which fully exempt the sale from withholding:
1. F-] The property qualifies as the seller's (or decedent's, if sold by the decedent's estate) principal residence within the meaning of Internal
Revenue Code (IRC) Section 121.
2. ❑ The seller (or decedent, if sold by the decedent's estate) last used the property as the seller's (decedent's) principal residence within the meaning
of IRC Section 121 without regard to the two -year time period.
3. ❑ The seller has a loss or zero gain for California income tax purposes on this sale. To check this box you must complete Form 593 -E, Real Estate
Withholding- Computation of Estimated Gain or Loss, and have a loss or zero gain on line 16.
4. F_� The property is being compulsorily or involuntarily converted and the seller intends to acquire property that is similar or related in service or use
to qualify for nonrecognition of gain for California income tax purposes under IRC Section 1033.
5. F-I The transfer qualifies for nonrecognition treatment under IRC Section 351 (transfer to a corporation controlled by the transferor) or IRC Section
721 (contribution to a partnership in exchange for a partnership interest).
6. F_� The seller is a corporation (or a limited liability company (LLC) classified as a corporation for federal and California income tax purposes) that is
either qualified through the California Secretary of State (SOS) or has a permanent place of business in California.
7. F__] The seller is a California partnership, or qualified to do business in California (or an LLC that is classified as a partnership for federal and
California income tax purposes and is not a single member LLC) that is not disregarded for federal and California income tax purposes. If this box
is checked, the partnership or LLC must still withhold on nonresident partners or members.
8. B The seller is a tax - exempt entity under California or federal law.
9. The seller is an insurance company, individual retirement account, qualified pension /profit sharing plan, or charitable remainder trust.
Part III - Certifications that may partially or fully exempt the sale from withholding:
Real Estate Escrow Person (REEP): See instructions for amounts to withhold.
10. The transfer qualifies as a simultaneous like -kind exchange within the meaning of IRC Section 1031.
11. The transfer qualifies as a deferred like -kind exchange within the meaning of IRC Section 1031.
12. The transfer of this property is an installment sale where the buyer is required to withhold on the principal portion of each installment payment.
Copies of Form 593 -I, Real Estate Withholding Sale Acknowledgement, and the promissory note are attached.
Part IV - Seller's Signature
Under penalties of perjury, I hereby certify that the information provided above is, to the best of my knowledge, true and correct. If conditions change, I will
promptly inform the withholding agent. I understand that the Franchise Tax Board may review relevant escrow documents to ensure withholding compliance
and that completing this form does not exempt me from filing a California income or franchise tax return to report this sale.
Seller's Name and Title Gilbert Wong Mayor Seller's Signature
Spouse's /RDP's Name
Spouse's /RDP's Signature
Please verify that the SSN or ITIN listed above in Part I of this form is correct.
Date
Date
Seller: If you checked any box in Part II , you are exempt from real estate: withholding.
If you checked any box in Part III, you may qualify for a partial or complete withholding exemption.
If you did not check any box in Part II or Part III, the withholding will be 3 1/3% (0.333) of the total sales price or the optional gain on sale
withholding amount certified by seller on Form 593, Real Estate Withholding Tax Statement.
If you are withheld upon, the withholding agent should give you one copy of Form 593. Attach a copy to the lower front of your California income
tax return and make a copy for your records.
Keep Form 593 -C for five years following the close of the transaction. You must furnish the form to the Franchise Tax Board upon request.
7131113 Form 593 -C C2 2010
For Privacy Notice, get form FTB 1131.
593 -C
'This booklet contains:
Form 593 -C, Real Estate Wtihholding
Certificate
Form 593 -E, Real Estate Withholding —
Computation of Estimated Gain or Loss
44 iL F lh
. P
State of California
S IFOM1N�p Franchise Tax Board
2011 California Forms 593 -C, 593 -E, and Instructions
Use this booklet for real estate sales or transfers closing in 2011. (For individual and non - individual sellers).
T bl of Contents C What is Real Estate Withholding?
a e
GeneralInformation ................................................. ..............................2
3
Form593- C ........................................................... ..............................
Instructionsfor Form 593- C .............................................. ..............................4
Form593- E ...................................................................... ..............................6
Instructions for Form 593- E .............................................. ..............................7
Howto Figure Your Basis .................................................. ..............................8
How to Get California Tax Information ............................. ..............................9
Wh =t1c NPw
Decrease in Tax Rates — For taxable years beginning on or after January
1, 2011, the maximum personal income tax rate is 9.3 %. In addition, non -
California partnerships are subject to withholding requirements on a sale of
California real property at a rate of 3 1/3% (.0333) of sales price or 9.3% of
gain. The alternative withholding rate for the gain on sale of California real
nrnnerty by S corporations is 10.8% and 12.8% for financial S corporations.
General Information
A Important Information
Installment Sales — For Installment sales occurring on or after January 1,
2009, buyers are required to withhold on the principal portion of each
installment payment if the sale of California real property is structured as an
installment sale.
Registered Domestic Partners (RDP) — Under California law, RDPs must
file their California income tax returns using either the married /RDP filing
jointly or married /RDP filing separately filing status. RDPs have the same
legal benefits, protections, and responsibilities as married couples unless
otherwise specified.
If you entered into a same -sex legal union in another state, other than a
marriage, and that union has been determined to be substantially equivalent
to a California registered domestic partnership, you are required to file a
California income tax return using either the married /RDP filing jointly or
married /RDP filing separately filing status.
For purposes of California income tax, references to a spouse, husband, or
wife also refer to a California RDP, unless otherwise specified. When we use
the initials RDP they refer to both a California registered domestic "partner"
and a California registered domestic "partnership," as applicable. For more
information on RDPs, get FTB Pub. 737, Tax Information for Registered
Domestic Partners.
Round Cents to Dollars — Round cents to the nearest whole dollar. For
example, round $50.50 up to $51 or round $25.49 down to $25. If you do
not round, the Franchise Tax Board (FTB) will disregard the cents.
B Purpose
Withholding is required when California real estate is sold or transferred. The
amount withheld from the seller or transferor is sent to the FTB as required
by California Revenue and Taxation Code Section 18662.
Withholding is not required if any of the following apply:
• The total sales price is $100,000 or less.
• The property is being foreclosed upon (sold pursuant to a power of
sale under a mortgage or deed of trust, sold pursuant to a decree of
foreclosure, or by a deed in lieu of foreclosure).
• The transferor is a bank acting as a trustee other than a trustee of a
deed of trust.
• The seller certifies to an exemption.
The following are excluded from withholding and completing this form:
• The United States and any of its agencies or instrumentalities.
• A state, a possession of the United States, the District of Columbia, or
any of its political subdivisions or instrumentalities.
For more information about real estate withholding, get FTB Pub. 1016, Real
Estate Withholding Guidelines.
If you are a seller:
Use Form 593 -C, Real Estate Withholding Certificate, to determine
whether you qualify for a full or partial withholding exemption. Keep
this form for five years.
Use Form 593 -E, Real Estate Withholding — Computation of Estimated
Gain or Loss, to determine your gain or loss on the sale and to
calculate the optional gain on sale withholding amount.. Keep this
form for five years.
Page 2 Form 593 -C /Form 593 -E Booklet 2010
Real estate withholding is:
A prepayment of estimated income tax due from the gain on a sale of
California real estate. If the amount withheld is more than the income
tax liability, we will refund the difference when you file a tax return
after the end of the taxable year.
Not an additional tax on the sale of real estate. It is your obligation to
file a California tax return, pay any tax due, and claim any real estate
withholding payment on your California tax return.
D Who Must Withhold?
Although the law requires the buyer to withhold, the buyer can request the
Real Estate Escrow Person (REEP), to do the withholding. We use the term
REEP throughout this publication to refer either to the REEP or the buyer,
whoever is taking responsibility for withholding.
E Why Do We Withhold?
We withhold to:
Ensure payment of income tax owed on the taxable gain from the sale.
Reduce the likelihood of penalties charged to the seller for
underpayment of estimated tax.
F Withholding Agent Instructions
Unless the sale qualifies for an automatic exclusion (the sales price is
$100,000 or less, the transferor is a bank ailing as a trustee other than
a trustee of a deed of trust, or the property is being foreclosed upon),
provide Forms 593, Real Estate Withholding Tax Statement, 593 -C,
593 -E, and 593 -I, Real Estate Withholding Installment Sale
Acknowledgement, with instructions to each seller as soon as escrow
opens. We update our forms and instructions annually; therefore make
certain you use the correct form. The year on the form should be the
year that escrow will close.
Instruct the seller to complete and sign Form 593 -C and return it to the
REEP by the close of escrow. Incomplete or improperly completed
forms may not exempt the seller from withholding. Form 593 -C cannot
be accepted after the close of escrow.
If the seller checked any box in Part II, Certifications which fully
exempt the sale from withholding, the seller is exempt from
withholding. You are relieved of the real estate withholding
requirements if, based on all the information that you have
knowledge of, the seller certify an exemption from withholding.
If the seller checked any box in Part III, Certifications that may
partially or fully exempt the sale from withholding, the seller may
qualify for a partial or complete withholding exemption. Read the
specific line instructions to determine the amount to withhold and
any additional requirements.
If the seller did not check any box in Part II or Part III, the
withholding will be 31/3% (.0333) of the total sales price, or the
optional gain on sale withholding amount from line 5 of the
certified Form 593.
If the seller does not return the completed Form 593 and Form
593 -C by the close of escrow, you are required to withhold 31/3%
(.0333) of the total sales price.
As the REEP, you are required to withhold and complete Form 593 for
each seller that was withheld upon. Give one copy of Form 593 to the
seller. After the close of the month, the REEP mails one copy of all of
the Forms 593 completed during the month, any Form 593 -I and
promissory note, to the FTB with the total amount withheld for all
transactions that closed during the month. However, the REEP has the
option to send in one payment and the related Form 593, any Form
593 -I and promissory note, if applicable, for each escrow. Regardless
of whether you send one payment for the month or one payment for
each escrow, Forms 593, any required Form 593 -I and promissory
note, and the withholding payment are due to the FTB by the 20th day
of the month following the month you closed escrow. As the REEP
remitting the withholding to the FTB, you must include your name and
telephone number as a contact for the remittance.
Do not send Form 593 -C to the FTB. The REEP retains this form for a
minimum of five years and must provide it to the FTB upon request,
Instructions for Form 593 -C
Real Estate Withholding Certificate
References in these instructions are to the Internal Revenue Code (IRC) as of January 1, 2009, and to the California Revenue and Taxation Code (R &TC).
In general, for taxable years beginning on or after January 1, 2010,
Part II Certifications That Fully Exempt Withholding
California law conforms to the Internal Revenue Code (IRC) as of January 1,
Line 1 - Principal Residence
2009. However, there are continuing differences between California and
To qualify as your principal residence under IRC Section 121, you (or the
federal law. When California conforms to federal tax law changes, we do not
decedent) generally must have owned and lived in the property as your main
always adopt all of the changes made at the federal level. For more
home for at least two years during the five -year period ending on the date of
information, go to ftb.ca.gov and search for conformity. Additional
sale. Military and Foreign Service, get FTB Pub. 1032, Tax Information for
information can be found in FTB Pub. 1001, Supplemental Guidelines to
Military Personnel.
California Adjustments, the instructions for California Schedule CA (540 or
You can have only one main home at a time. If you have two homes and live
540NR), and the Business Entity tax booklets.
in both of them, the main home is the one you lived in most of the time.
Purpose There are exceptions to the two -year rule if the primary reason you are
Use Form 593 -C, Real Estate Withholding Certificate, to determine whether selling the home is for a change in the place of employment, health, or
ou qualify for a full or partial withholding exemption. unforeseen circumstances such as death, divorce or termination of
Qualifying for an exemption from withholding' or being withheld upon does registered domestic partnership, or loss of job, etc. For more information
not relieve you of your obligation to file a California income tax return and about what qualifies as your principal residence or exceptions to the two
pay any tax due on the sale of California real estate: year rule, get federal Publication 523, Selling Your Home. You can get this
publication at irs.gov, or call 800.829.3676.
The seller must submit this form before the close of escrow to prevent If only a portion of the property qualifies as your principal residence, insert
withholding on the transaction. After escrow; has closed, amounts withheld ` the percentage allocated to the principal residence in the space above line
maybe recovered only,by.,claiming the withholding es a credit on the and inform the REEP.
appropriate year's tax return. '
The allocation method should be the same as the seller used to determine
depreciation.
Line 2 — Property last used as your principal residence
If the property was last used as the seller's or decedent's principal residence
within the meaning of IRC Section 121 without regard to the two -year time
period, no withholding is required. If the last use of the property was as a
vacation home, second home, or rental, you do not qualify for the
exemption. You must have lived in the property as your main home.
If you have two homes and live in both of them, the main home is the one
you lived in most of the time.
Line 3 — Loss or Zero Gain
You have a loss or zero gain for California income tax purposes when the
amount realized is less than or equal to your adjusted basis. You must
complete Form 593 -E, Real Estate Withholding — Computation of Estimated
Gain or Loss, and have a loss or zero gain on line 16 to certify that the
transaction is fully exempt from withholding.
You may not certify that you have a net loss or zero gain just because you
do not receive any proceeds from the sale or because you feel you are
selling the property for less than what it is worth.
Line 4 — Involuntary Conversion
The property is being involuntarily or compulsorily converted when both of
the following apply:
• The California real property is transferred because it was (or
threatened to be) seized, destroyed, or condemned within the meaning
of IRC Section 1033.
• The transferor (seller) intends to acquire property that is similar or
related in service or use in order to be eligible for nonrecognition of
gain for California income tax purposes.
Get federal Publication 544, Sales and Other Dispositions of Assets, for more
information about involuntary conversions.
Line 5 — Non - recognition Under IRC Section 351 or 721
The transfer must qualify for nonrecognition treatment under IRC Section
351 (transferring to a corporation controlled by transferor) or IRC Section
721 (contributing to a partnership in exchange for a partnership interest).
Real Estate Escrow Person: If, during the escrow, an individual seller
transfers title to a corporation or partnership and then the corporation or
partnership transfers title to the buyer, then there are two transfers for
withholding purposes. Accordingly, two separate Forms 593 -C should be
completed for withholding purposes. The individual must complete one form
for the transfer to the corporation or partnership. The corporation or
partnership must complete the other form for the transfer to the buyer.
Part I Seller's Information
Name, Taxpayer Identification Number, and Address
Enter the name, tax identification number, and address of the seller or other
transferor. If the seller does not provide a tax identification number, then
Form 593 -C is void, and withholding is required.
If the seller is an individual, enter the social security number (SSN) or
individual taxpayer identification number (ITIN). If the sellers are
spouses /registered domestic partners (RDPs) and plan to file a joint return,
enter the name and SSN or ITIN for each spouse /RDP. Otherwise, do not
enter information for more than one seller. Instead, complete a separate
Form 593 -C for each seller.
If you do not have an SSN because you are a nonresident or a resident alien
for federal tax purposes, and the Internal Revenue Service (IRS) issued you
an ITIN, enter the ITIN in the space provided for the SSN.
An ITIN is a tax processing number issued by the IRS to individuals who
have a federal tax filing requirement and do not qualify for a SSN. It is a
nine -digit number that always starts with the number 9.
If the seller is a grantor trust, enter the grantor's individual name and SSN.
For tax purposes, the grantor trust is disregarded for tax purposes and the
individual seller must report the sale and claim the withholding on their
individual tax return. If the trust was a grantor trust that became irrevocable
upon the grantor's death, enter the name of the trust and the trust's federal
employer identification number (FEIN). Do not enter the decedent's or
trustee's name or SSN.
If the seller is a non - grantor trust, enter the name of the trust and the
trust's FEIN. Do not enter trustee information.
If the seller is a single member disregarded LLC, enter the name and tax
identification number of the single member.
Real Estate Escrow Person (REEP): If you choose to provide a copy
of Form 593 -C to the buyer, delete the seller's tax identification number on
the buyer's copy.
Ownership Percentage
Enter your ownership percentage rounded to two decimal places (e.g.
66.67 %). If you are on the title for incidental purposes and you have no
financial ownership, enter 0.00 and skip to Part IV. You will not be withheld
upon.
Examples of sellers who are on title for incidental purposes are:
• Co- signers on title (e.g., parents co- signed to help their child qualify for
the loan).
• Family members on title to receive property upon the owner's death.
Page 4 Form 593 -C /Form 593 -E Booklet 2010
Line 6 — Corporation
A corporation has a permanent place of business in California if any of the
following apply:
It is organized and existing under the laws of California.
• It is qualified to transact business in California through the California
Secretary of State.
• It will maintain and staff a permanent office in California.
S corporations must withhold on nonresident S corporation shareholders. Get
FTB Pub. 1017, Resident and Nonresident Withholding Guidelines, for more
information.
Line 7 — Partnership or Limited Liability Company (LLC)
Partnerships and LLCs are required to withhold on nonresident partners and
members. For more information, get FTB Pub.1017.
Withholding is not required if the title to the property transferred is recorded
in the name of a California partnership or it is qualified to do business in
California.
Withholding is not required if the title to the property transferred is in the
name of an LLC, and the LLC meets both of the following:
is classified as a partnership for federal and California income tax
purposes.
is not a SMLLC that is disregarded for federal and California income tax
purposes.
If the LLC meets these conditions, the LLC must still withhold on nonresident
members. Get FTB Pub. 1017 for more information.
If the SMLLC is classified as a corporation for federal and California income
tax purposes, then the seller is considered a corporation for withholding
purposes. Refer to Line 6.
If the LLC is an SMLLC that is disregarded for federal and California income
tax purposes, then that single member is considered the seller and title to
the property is considered to be in the name of the single member for
withholding purposes.
When completing Form 593 -C as the single member of a disregarded LLC,
write on the bottom of the form that the information on the form is for the
single member of the LLC, so the REEP will understand why it is different
from the rprnrdpd title holder.
If the sin le member is
Complete Form 593 -C using:
An individual
The individual's information
A corporation
The corporation's information
A partnership
The partnership's information
An LLC
The single member's information
Line 8 — Tax - Exempt Entity
Withholding is not required if the seller is tax- exempt under either California
or federal law (e.g., religious, charitable, educational, not for profit
organizations, etc.).
Line 9 — Insurance Company, Individual Retirement Account,
Qualified Pension or Profit- Sharing Plan, or Charitable
Remainder Trust
Withholding is not required when the seller is an insurance company,
individual retirement account, qualified pension or profit- sharing plan, or a
charitable remainder trust.
Part III Certifications That May Partially or Fully Exempt
the sale From Withholding
Complete Part III only: if you" did not meet any of the exemptions in
Part'II. If you met an. exemption in Part,II,.skip to, Part V.
Line to — Simultaneous Exchange
If the California real property is part of a simultaneous like -kind exchange
within the meaning of IRC Section 1031, the transfer is exempt from
withholding. However, if the seller receives money or other property (in
addition to property that is a part of the like -kind exchange) exceeding
$1,500 from the sale, the withholding agent must withhold.
Line 11— Deferred Exchange
If the California real property is part of a deferred like -kind exchange within
the meaning of IRC Section 1031, the sale is exempt from withholding at the
time of the initial transfer. However, if the seller receives money or other
property (in addition to property that is a part of the like -kind exchange)
exceeding $1,500 from the sale, the withholding agent must withhold.
The intermediary or accommodator must withhold on all cash or cash
equivalent (boot) it distributes to the seller if the amount exceeds $1,500.
If the exchange does not take place or if the exchange does not qualify for
non recognition treatment, the intermediary or accommodator must withhold
31/3% (.0333) of the total sales price.
Line 12 — Installment Sale
For installment sales occurring on or after January 1, 2009, the buyer is
required to withhold on the principal portion of each installment payment if
the sale is structured as an installment sale. The buyer must complete and
sign Form 593 -I, Real Estate Withholding Installment Sale
Acknowledgement, and attach a copy of the promissory note with the first
installment payment.
When the withholding amount on the first installment principal payment is
sent to the FTB, the FTB must also receive a completed Form 593 -I, a
completed Form 593, Real Estate Withholding Tax Statement, and a copy of
the promissory note.
Part IV Seller's Signature
You must sign this form and return it to your REEP by the close or escrow
for it to be valid. Otherwise, the withholding agent must withhold the full
31/3% (.0333) of the total sales price or the optional gain on sale
withholding amount from line 5 of Form 593 that is certified by the seller.
Any transferor (seller) who, for the purpose of avoiding the withholding
requirements, knowingly executes a false certificate is liable for a penalty of
$1,000 or 20% of the required withholding amount, whichever is greater.
Form 593 -C /Form 593 -E Booklet 2010 Page 5
YEAR Real Estate Withholding — CALIFORNIA FORM
2011 Computation of Estimated Gain or Loss 593 -E
(You are required to complete this form if you claim an exemption due to a loss or zero gain or if you elect an optional gain on sale withholding amount.)
Seller or Transferor: SSN or ITIN
name
Address (suite, room, PO Box, or PMB no.)
City
Property address (if no street address, provide
number
Spouse's /RDP's SSN or ITIN (if jointly
FEIN =CA Corp. No. =SOS file no.
ZIP
1 Selling price ............................................................. ............................... 2
2 Selling expenses ............................................................................................................................................................... ............................... 3
3 Amount realized. Subtract line 2 from line 1 .................................................................................................... ...............................
4 Enter the price you paid to purchase the property (If you acquired the property other than by purchase,
see instructions, How to Figure Your Basis When You Did Not Purchase the Property) 4
5 Seller -paid points 5
.....................
6 Depreciation ......................................................................... ...............................
7 Other decreases to basis ............................................................ ...............................
8 Total decreases to basis. Add line 5 through line 7 9
9 Subtract line 8 from line 4 •••••• •••••••••••••••••••••••••••••••
..............
10
10 Cost of additions and improvements ........,,•,,,,,,,,,,• ................... ............................... 11
11 Other increases to basis .............................................................. ...............................
12 Total increases to basis. Add line 10 and line 11 .......... 13
13 Adjusted basis. Add line 9 and line 12 ...................................................................... ............................... 14
14 Enter any suspended passive activity losses from this property ................••,,, ...................................................
15 Add line 13 and line 14 ............................................................................,................................................................ ...............................
16 Estimated gain or loss on sale. Subtract line 15 from line 3 and enter the amount here. If you have a loss or zero gain, skip lines 17
and 18. Complete the Seller's Signature area below and check the box on Form 593 -C, Part II line 3. If you have a gain, go to
line 17
17 Optional gain on sale withholding amount. Check the applicable box for tie filing type.
Individual 9.3% F__] Corporation 8.84% Bank and Financial Corporation 10.84%
Non - California Partnership F1 S Corporation 10.8% ❑ Financial S Corporation 12.8%
❑ 9.3%
Multiply the amount on line 16 by the tax rate for the filing type selected above and enter the result on line 17. This is the optional
15
16
gain on sale withholding amount.
If you elect the optional gain on sale withholding amount on line 17, go to Fc rm 593 and check the appropriate box on line 4 (Boxes B -G) for the Optional
Gain on
Sale Election, and transfer the amount on line 17 to Form 593, line 5. 17
Sign Form 593 to certify the election ................................................................................................................................. ...............................
18 Total sales price withholding amount. Multiply the selling price on line 1 t y 3 1/3% (.0333) and enter the amount on line 18.
This is the total sales price withholding amount.
If you select the total sales price withholding amount on line 18, check Box A "3 113% (.0333) x Total Sales Price" on line 4 of 18
Form 593, and transfer the amount on line 18 to Form 593, line 5 ............................................................................... ..........................•....
Title and escrow persons and exchange accommodalors are not authorized to provide legal or accounting advice for purposes of determining withholding
amounts. Transferors are strongly encouraged to consult with a competent tax professional for this purpose.
Under penalties of perjury, I hereby certify that the information provided above is, to the best of my knowledge, true and correct. I understand that I must retain
this form in my records for 5 years and that the Franchise Tax Board may review relevant escrow documents to ensure withholding compliance and if
conditions change, I will promptly inform the withholding agent. I understand that completing this form does not exempt me from filing a California income tax
return to report this sale.
Seller's Name
Seller's Signature
Spouse's /RDP's Name (if jointly
owned)
Spouse's/RDP's Signature (if jointly
owned)
For Privacy Notice, get form FTB 1131.
Date:
Date:
-17151113 1 Form 593 -E C2 2011
Instructions for Form 593 -E
Real Estate Withholding — Computation of Estimated Gain or Loss
References in these instructions are to the Internal Revenue Code (IRC) as of January 1, 2009 and to the California Revenue and Taxation Code (R &TC).
In general, for taxable years beginning on or after January 1, 2010, California
law conforms to the Internal Revenue Code (IRC) as of January 1, 2009.
However, there are continuing differences between California and federal law.
When California conforms to federal tax law changes, we do not always adopt
all of the changes made at the federal level. For more information, go to
ftb.ca.gov and search for conformity. Additional information can be found in
FTB Pub. 1001, Supplemental Guidelines to California Adjustments, the
instructions for California Schedule CA (540 or 540NR), and the Business Entity
tax booklets.
Purpose
Use Form 593 -E, Real Estate Withholding — Computation of Estimated Gain or
Loss, to estimate the amount of your gain or loss for withholding purposes and
to calculate an optional gain on sale withholding amount. This form is used for
sales closing in 2011 and can be used by both individual and non individual
sellers.
You may use estimates when you complete this form, but the estimates must
not result in the calculation of a loss when you actually have a gain. Any
transferor (seller) who, for the purpose of avoiding the withholding
requirements, knowingly executes a false certificate is liable for a penalty of
$1,000 or 20% of the required withholding amount, whichever is greater.
This form is signed under penalty of perjury. The seller must keep this form for
5 years and provide it to the Franchise Tax Board (FTB) upon request.
However, the seller is not required to provide this form to the withholding
agent or buyer.
Who can complete this form?
The seller completes this form. Title and real estate escrow persons (REEP)
and exchange accommodators are not authorized to provide legal or
accounting advice for purposes of determining withholding amounts. Sellers
are strongly encouraged to consult with a tax professional for this purpose.
You can also download, view, and print federal forms and publications at
irs.gov.
For federal tax questions call the IRS at:
800.829.1040 Assistance for Individuals
800.829.4933 Assistance for businesses
Specific Instructions
Line 1— Selling Price
The selling price is the total amount you will receive for your property. It
includes money, as well as, all notes, mortgages, or other debts assumed by
the buyer as part of the sale, plus the fair market value of any other property
or any services you receive.
Line 2— Selling Expenses
Selling expenses include commissions, advertising fees, legal fees, and loan
charges that will be paid by the seller, such as loan placement fees or points.
Line 3 — Amount Realized
The amount realized is the selling price minus the selling expenses.
Line 4 — Purchase Price
If you acquired this property by purchase, enter your purchase price. Your
purchase price includes the down payment and any debt you incurred; such as
a first or second mortgage or promissory notes you gave the seller in payment
for the property. If you acquired the property by gift, inheritance, exchange, or
any way other than purchase, see instructions, How to Figure Your Basis When
You Did Not Purchase the Property.
Line 5 — Seller -Paid Points
Points are charges paid to obtain a loan. They may also be called loan
origination fees, maximum loan charges, loan discount, or discount points. If
the seller paid points for you when you acquired the property, enter the
amount paid by the seller on your behalf on line 5, unless you already
subtracted this item to arrive at the amount for line 4.
Line 6 — Depreciation
Enter the amount of depreciation you deducted, or could have deducted, on
your California income tax return for business or investment use of the
property under the method of depreciation you chose. If you took less
depreciation on your tax return than you could have under the method chosen,
you must enter the amount you could have taken under that method. If you
did not take a depreciation deduction, enter the full amount of depreciation
you could have taken. Get federal Publication 946, How to Depreciate
Property, for more information.
Depreciation Option - If you do not know how much depreciation you
deducted or were allowed, you can make an estimate of the amount of
depreciation (for withholding purposes only). To estimate the depreciation,
divide the purchase price plus the cost of additions and improvements by
27.5 and multiply that by the number of years you used the property for
business use (up to 27.5 years).
Example: Mary bought a house 20 years ago for $150,000 and has used it
as a rental property for the last 18 years. Prior to renting the house, she
added a pool which cost her $25,000. Mary's depreciation is estimated as
follows:
Cost
$150,000
Plus additions
25,000
Total
175,000
Divided by 27.5 =
6,364
Multiply by 18 years =
$114,552
Mary's estimated depreciation to enter on line 6 is $114,552.
Line 7 - Other Decreases to Basis
Include any other amounts that decrease your basis, such as:
• Casualty or theft loss deductions and insurance reimbursements.
• Energy credits claimed for the cost of energy improvements added to your
basis.
• Payments received for granting an easement or right -of -way.
Line 10 - Additions and Improvements
These add to the value of your property, prolong its useful life, or adapt it to
new uses. Examples include: room additions, landscaping, new roof,
insulation, new furnace or air conditioner, remodeling, etc. The cost of
repairs may not be included unless they are part of an extensive remodeling
or restoration project. Do not include any additions or improvements on line
10 that were included on line 4.
Line 11 - Other Increases to Basis
Include the amounts paid for any other items that increase the basis of the
property, such as:
• Settlement fees and closing costs you incurred when you bought the
property.
• The amount you paid for special assessments for items such as water
connections, paving roads, and building ditches.
• The cost of restoring damaged property from a casualty loss, or cost of
extending utility service lines to the property.
Line 14 - Passive Activity Losses
You may only use suspended passive activity losses that directly relate to the
property sold. Other losses such as net operating losses, capital loss carry-
forwards, stock losses, and passive activity losses from other properties
cannot be used.
Line 16 - Estimated Gain or Loss on Sale
If you have a zero gain or loss, check the box on Form 593-C, Real Estate
Withholding Certificate, line 3. Complete and sign Form 593 -C and give it to
your REEP. You will not be subject to withholding on this sale. Keep Form
593 -E for 5 years to document your calculations and provide to the FTB if
requested.
If you have a gain, this is your estimated amount of gain on the sale of your
California property. Go to line 17.
Line 17 — Optional Gain on Sale Withholding Amount
Multiply the amount on line 16 by the tax rate for the filing type selected and
enter the amount on line 17. You, may compare this amount to the
withholding amount on the total sales price shown on line 18. If you elect the
optional gain on sale withholding amount on line 17, check the appropriate
box on line 4 (Boxes B -G) for the Optional Gain on Sale Election, on Form
593, then transfer the amount on line 17 to Form 593, Real Estate
Withholding Tax Statement, line 5. Sign Form 593 to certify the election.
Keep Form 593 -E for 5 years to document your calculations and provide to
the FTB upon request.
Line 18 —Total Sales Price Withholding Amount
Multiply the selling price on line 1 by 31/3% (.0333) and enter the amount on
line 18. If you select the standard withholding amount on line 18, check Box
A on line 4 of Form 593, and transfer the amount on line 18 to Form 593, line
5.
Form 593 -C /Form 593 -E Booklet 2010 Page 7
How to Figure Your Basis
When You Did Not Purchase the Property
The cost or purchase price of property is usually its basis
other than purchase,
for figuring gain or loss from its sale or other disposition. However, if you acquired the property by gift,
you must use a basis other than its cost. The following instructions only reflect the general rules.
inheritance, exchange, or in some way
Exceptions may apply. Get federal Publication 551, Basis
of Assets, for more informal ion. Sellers are strongly encouraged to consult with a tax professional for
this purpose.
How to Determine Your Basis
How Property Was Received
he rest of the basis at the
on line 4. basis is the donor's
(except line 5) with eyolur information after you received ed the
Property was received as a gift
property.
If the fair market value (FMV) of the property at the time of the gift was less than the donor's adjusted
basis, get federal Publication 551 to determine your basis.
Usually, your basis is the FMV at the date of the individual's death. You can get that valuation from the
use the appraised value at the date of death. Enter the
Property was inherited from
someone other than your
probate documents, or if there was no probate,
FMV on line 4. Then complete the rest of the form (except line 5) with your information after you
spouse /RDP
received the property.
If you or your spouse /RDP originally gave the property to the decedent within one year of the decedent's
death, get federal Publication 551 to determine your basis.
Your basis is the FMV of the total property at the date of your spouse's /RDP's death. Enter the FMV on
line 4. Then complete the rest of the form (except line 5) with your information after the date of death.
You owned the property
(as community property) with
your spouse /RDP who died
Your basis is the sum of: 1) the FMV of your spouse's /RDP's half of the property at the date of your
spouse's /RDP's death; and, 7) the existing basis of your half of the property at the date of your
You owned the property (in joint
tenancy) with your spouse /RDP
spouse's /RDP's death. Enter the sum on line 4. Then complete the rest of the form (except line 5) with
who died
your information after the date of death.
Usually, your basis is the same as it would have been without this transfer. Complete Form 593-E as if
had been the only owner before and after
Property received from your
spouse /RDP in connection to your
divorce /termination of registered
you
th July 1984, get federal Publication 551 to
If your spouse /RDP transfer•ed the property y ou before Y
domestic partnership
determine your basis.
Your basis will depend on whether you received the property in a nontaxable, taxable, or partially taxable
Get federal Publication 551 to determine your basis. Enter your basis on line 4. Then complete
Property received in exchange
for other property
exchange.
the rest of the form. However, do not include any amounts on line 5 through line 10 that you included
on line 4.
You built the house Add the purchase price of the land and the cost of the building. Enter the total on line 4 and complete the
(or other improvements) rest of the form.
on the property being sold If you deferred the gain from a previous home to this property, get federal Publication 551.
You received the property in a Enter your basis in the property after the foreclosure on line 4. (You may need to get a tax professional
foreclosure to help you with this calculation). Then complete the rest of the form (except for line 5) with your
information after the foreclosure.
Page 8 Form 593 -C /Form 593 -E Booklet 2010
How to Get California Tax Information
Additional Information
To get a withholding form or publication, or to speak to a representative,
contact our Withholding Services and Compliance's automated telephone
services at:
888.792.4900, or
916.845.4900
FAX 916.845.9512
Or write to:
WITHHOLDING SERVICES AND COMPLIANCE
FRANCHISE TAX BOARD
PO BOX 942867
SACRAMENTO CA 94267 -0651
You can download, view, and print California tax forms and publications
at ftb.ca.gov.
Or to get forms by mail write to:
TAX FORMS REQUEST UNIT
FRANCHISE TAX BOARD
PO BOX 307
RANCHO CORDOVA CA 95741 -0307
Internet and Telephone Assistance
Website: ftb.ca.gov
Telephone: 800.852.5711 from within the United States
916.845.6500 from outside the United States
TTY/TDD: 800.822.6268 for persons with hearing or speech
impairments
Asistencia Por Internet y Teldfono
Sitio web: ftb.ca.gov
Telefono: 800.852.5711 dentro de los Estados Unidos
916.845.6500 fuera de los Estados Unidos
TTY%TDD: 800.822.6268 personas con discapacidades de la audicidn
y del habla
Form 593 -C /Form 593 -E Booklet 2010 Page 9
YEAR
2011 Real Estate Withholding Certificate
CALIFORNIA FORM
593 -C .
Part I — Seller's Information Return this form to your escrow company.
SSN or ITIN
Name
The 2000 Knapp Family Trust
name (if jointly owned)
Address (suite, room, PO Box, or PMB no.)
CA
Property address (if no street address, provide parcel number and
10346 Scenic Boulevard, Cupertino CA 95014
P Code
or ITIN (if jointly owned)
E] FEIN D CA Corp no. D SOS file no.
To determine whether you qualify for a full or partial withholding exemption, check all boxes that apply to the property being sold or transferred.
(See line -by -line notes in the Instructions)
Part II — Certifications which fully exempt the sale from withholding:
1. The property qualities as the seller's (or decedent's, if sold by the decedent's estate) principal residence within the meaning of Internal
Revenue Code (IRC) Section 121.
2. F—] The seller (or decedent, if sold by the decedent's estate) last used the property as the seller's (decedent's) principal residence within the meaning
of IRC Section 121 without regard to the two -year time period.
3. F_� The seller has a loss or zero gain for California income tax purposes on this sale. To check this box you must complete Form 593 -E, Real Estate
Withholding- Computation of Estimated Gain or Loss, and have a loss or zero gain on line 16.
4. F_� The property is being compulsorily or involuntarily converted and the seller intends to acquire property that is similar or related in service or use
to qualify for nonrecognition of gain for California income tax purposes under IRC Section 1033.
5. F_� The transfer qualifies for nonrecognition treatment under IRC Section 351 (transfer to a corporation controlled by the transferor) or IRC Section
721 (contribution to a partnership in exchange for a partnership interest).
6, F-I The seller is a corporation (or a limited liability company (LLC) classified as a corporation for federal and California income tax purposes) that is
either qualified through the California Secretary of State (SOS) or has a permanent place of business in California.
7. F_� The seller is a California partnership, or qualified to do business in California (or an LLC that is classified as a partnership for federal and
California income tax purposes and is not a single member LLC) that is not disregarded for federal and California income tax purposes. If this box
is checked, the partnership or LLC must still withhold on nonresident partners or members.
8. 8 The seller is a tax - exempt entity under California or federal law. /profit sharing plan, or charitable remainder trust.
9. The seller is an insurance company, individual retirement account, qualified pension
Part III — Certifications that may partially or fully exempt the sale from withholding:
Real Estate Escrow Person (REEP): See instructions for amounts to withhold.
10. The transfer qualifies as a simultaneous like -kind exchange within the meaning of IRC Section 1031.
11. The transfer qualifies as a deferred like -kind exchange within the meaning of IRC Section 1031.
12. The transfer of this property is an installment sale where the buyer is required to withhold on the principal portion of each installment payment.
Copies of Form 593 -I, Real Estate Withholding Sale Acknowledgement, and the promissory note are attached.
IV — Seller's Signatu
Under penalties of perjury, I hereby certify that the information provided above is, to the best of my knowledge, true and correct. If conditions change, I will
promptly inform the withholding agent. I understand that the Franchise Tax Board may review relevant escrow documents to ensure withholding compliance
and that completing this form does not exempt me from filing a California income or franchise tax return to report this sale.
Seller's Name and Title David Knapp Seller's Signature
Spouse's /RDP's Name Kay L Knapp Spouse':: /RDP's Signature
Please verify that the SSN or ITIN listed above in Part I of this form is correct.
Date
Date
Seller: If you checked any box in Part II , you are exempt from real estate: withholding.
If you checked any box in Part III, you may qualify for a partial or complete withholding exemption.
If you did not check any box in Part II or Part III, the withholding will be 3 1/3% (0.333) of the total sales price or the optional gain on sale
withholding amount certified by seller on Form 593, Real Estate Withholding Tax Statement.
If you are withheld upon, the withholding agent should give you one copy of Form 593. Attach a copy to the lower front of your California income
tax return and make a copy for your records.
Keep Form 593 -C for five years following the close of the transaction. You must furnish the form to the Franchise Tax Board upon request.
7131113 Form 593 -C C2 2010
For Privacy Notice, get form FTB 1131.
593 -C
93ME
zoii
'This booklet contains:
Form 593 -C, Real Estate Wtihholding
Certificate
Form 593 -E, Real Estate Withholding -
Computation of Estimated Gain or Loss
. F
J
State of California
q'IF PP�P Franchise Tax Board
2011 California Forms 593 -C, 593 -E, and Instructions
Use this booklet for real estate sales or transfers closing in 2011. (For individual and non - individual sellers).
Table of Contents C What is Real Estate Withholding?
GeneralInformation ................................................. ..............................2
Form593- C ........................................................... ..............................3
Instructions for Form 593- C .............................................. ..............................4
Form593- E ...................................................................... ..............................6
Instructions for Form 593- E .............................................. ..............................7
Howto Figure Your Basis .................................................. ..............................8
How to Get California Tax Information ............................. ..............................9
What's New
Decrease in Tax Rates — For taxable years beginning on or after January
1, 2011, the maximum personal income tax rate is 9.3 %. In addition, non -
California partnerships are subject to withholding requirements on a sale of
California real property at a rate of 3 1/3% (.0333) of sales price or 9.3% of
gain. The alternative withholding rate for the gain on sale of California real
Drooertv by S corporations is 10.8% and 12.8% for financial S corporations.
Gpnpral Information
A Important Information
Installment Sales — For Installment sales occurring on or after January 1,
2009, buyers are required to withhold on the principal portion of each
installment payment if the sale of California real property is structured as an
installment sale.
Registered Domestic Partners (RDP) — Under California law, RDPs must
file their California income tax returns using either the married /RDP filing
jointly or married /RDP filing separately filing status. RDPs have the same
legal benefits, protections, and responsibilities as married couples unless
otherwise specified.
If you entered into a same -sex legal union in another state, other than a
marriage, and that union has been determined to be substantially equivalent
to a California registered domestic partnership, you are required to file a
California income tax return using either the married /RDP filing jointly or
married /RDP filing separately filing status.
For purposes of California income tax, references to a spouse, husband, or
wife also refer to a California RDP, unless otherwise specified. When we use
the initials RDP they refer to both a California registered domestic "partner"
and a California registered domestic "partnership," as applicable. For more
information on RDPs, get FTB Pub. 737, Tax Information for Registered
Domestic Partners.
Round Cents to Dollars — Round cents to the nearest whole dollar. For
example, round $50.50 up to $51 or round $25.49 down to $25. If you do
not round, the Franchise Tax Board (FTB) will disregard the cents.
B Purpose
Withholding is required when California real estate is sold or transferred. The
amount withheld from the seller or transferor is sent to the FTB as required
by California Revenue and Taxation Code Section 18662.
Withholding is not required if any of the following apply:
• The total sales price is $100,000 or less.
• The property is being foreclosed upon (sold pursuant to a power of
sale under a mortgage or deed of trust, sold pursuant to a decree of
foreclosure, or by a deed in lieu of foreclosure).
• The transferor is a bank acting as a trustee other than a trustee of a
deed of trust.
• The seller certifies to an exemption.
The following are excluded from withholding and completing this form:
• The United States and any of its agencies or instrumentalities.
• A state, a possession of the United States, the District of Columbia, or
any of its political subdivisions or instrumentalities.
For more information about real estate withholding, get FTB Pub. 1016, Real
Estate Withholding Guidelines.
If you are a seller:
• Use Form 593 -C, Real Estate Withholding Certificate, to determine
whether you qualify for a full or partial withholding exemption. Keep
this form for five years.
• Use Form 593 -E, Real Estate Withholding — Computation of Estimated
Gain or Loss, to determine your gain or loss on the sale and to
calculate the optional gain on sale withholding amount.. Keep this
form for five years.
Page 2 Form 593 -C /Form 593 -E Booklet 2010
Real estate withholding is:
• A prepayment of estimated income tax due from the gain on a sale of
California real estate. If the amount withheld is more than the income
tax liability, we will refund the difference when you file a tax return
after the end of the taxable year.
• Not an additional tax on the sale of real estate. It is your obligation to
file a California tax return, pay any tax due, and claim any real estate
withholding payment on your California tax return.
D Who Must Withhold?
Although the law requires the buyer to withhold, the buyer can request the
Real Estate Escrow Person (REEP), to do the withholding. We use the term
REEP throughout this publication to refer either to the REEP or the buyer,
whoever is taking responsibility for withholding.
E Why Do We Withhold?
We withhold to:
• Ensure payment of income tax owed on the taxable gain from the sale.
• Reduce the likelihood of penalties charged to the seller for
underpayment of estimated tax.
F Withholding Agent Instructions
• Unless the sale qualifies for an automatic exclusion (the sales price is
$100,000 or less, the transferor is a bank acting as a trustee other than
a trustee of a deed of trust, or the property is being foreclosed upon),
provide Forms 593, Real Estate Withholding Tax Statement, 593 -C,
593 -E, and 593 -I, Real Estate Withholding Installment Sale
Acknowledgement, with instructions to each seller as soon as escrow
opens. We update our forms and instructions annually; therefore make
certain you use the correct form. The year on the form should be the
year that escrow will close.
• Instruct the seller to complete and sign Form 593 -C and return it to the
REEP by the close of escrow. Incomplete or improperly completed
forms may not exempt the seller from withholding. Form 593 -C cannot
be accepted after the close of escrow.
If the seller checked any box in Part II, Certifications which fully
exempt the sale from withholding, the seller is exempt from
withholding. You are relieved of the real estate withholding
requirements if, based on all the information that you have
knowledge of, the seller certify an exemption from withholding.
If the seller checked any box in Part III, Certifications that may
partially or fully exempt the sale from withholding, the seller may
qualify for a partial or complete withholding exemption. Read the
specific line instructions to determine the amount to withhold and
any additional requirements.
If the seller did not check any box in Part II or Part III, the
withholding will be 31/3 %(,0333) of the total sales price, or the
optional gain on sale withholding amount from line 5 of the
certified Form 593.
E] If the seller does not return the completed Form 593 and Form
593 -C by the close of escrow, you are required to withhold 31/3%
(.0333) of the total sales price.
• As the REEP, you are required to withhold and complete Form 593 for
each seller that was withheld upon. Give one copy of Form 593 to the
seller. After the close of the month, the REEP mails one copy of all of
the Forms 593 completed during the month, any Form 593 -I and
promissory note, to the FTB with the total amount withheld for all
transactions that closed during the month. However, the REEP has the
option to send in one payment and the related Form 593, any Form
593 -I and promissory note, if applicable, for each escrow. Regardless
of whether you send one payment for the month or one payment for
each escrow, Forms 593, any required Form 593 -I and promissory
note, and the withholding payment are due to the FTB by the 20th day
of the month following the month you closed escrow. As the REEP
remitting the withholding to the FTB, you must include your name and
telephone number as a contact for the remittance.
• Do not send Form 593 -C to the FTB. The REEP retains this form for a
minimum of five years and must provide it to the FTB upon request.
Instructions for Form 593 -C
Real Estate Withholding Certificate
References in these instructions are to the Internal Revenue Code (IRC) as of January 1, 2009, and to the California Revenue and Taxation Code (R &TC).
In general, for taxable years beginning on or after January 1, 2010,
California law conforms to the Internal Revenue Code (IRC) as of January 1,
2009. However, there are continuing differences between California and
federal law. When California conforms to federal tax law changes, we do not
always adopt all of the changes made at the federal level. For more
information, go to ftb.ca.gov and search for conformity. Additional
information can be found in FTB Pub. 1001, Supplemental Guidelines to
California Adjustments, the instructions for California Schedule CA (540 or
540NR), and the Business Entity tax booklets.
Purpose
Use Form 593 -C, Real Estate Withholding Certificate, to determine whether
you qualify for a full or partial withholding exemption.
Qualifying for an exemption from withholding or,'being withheld upon does
not relieve you of your; obligation to file a California income tax return and
pay any tax due on the safe of California real estate.''
The seller must submit this form before the close of escrow to prevent
withholding on the transaction. After escrow,.has closed,;amounts withheld
may be recovered only by claiming the withholding as I a credit`on the
appropriate years tax return.
Part I Seller's Information
Name, Taxpayer Identification Number, and Address
Enter the name, tax identification number, and address of the seller or other
transferor. If the seller does not provide a tax identification number, then
Form 593 -C is void, and withholding is required.
If the seller is an individual, enter the social security number (SSN) or
individual taxpayer identification number (ITIN). If the sellers are
spouses /registered domestic partners (RDPs) and plan to file a joint return,
enter the name and SSN or ITIN for each spouse /RDP. Otherwise, do not
enter information for more than one seller. Instead, complete a separate
Form 593 -C for each seller.
If you do not have an SSN because you are a nonresident or a resident alien
for federal tax purposes, and the Internal Revenue Service (IRS) issued you
an ITIN, enter the ITIN in the space provided for the SSN.
An ITIN is a tax processing number issued by the IRS to individuals who
have a federal tax filing requirement and do not qualify fora SSN. It is a
nine -digit number that always starts with the number 9.
If the seller is a grantor trust, enter the grantor's individual name and SSN.
For tax purposes, the grantor trust is disregarded for tax purposes and the
individual seller must report the sale and claim the withholding on their
individual tax return. If the trust was a grantor trust that became irrevocable
upon the grantor's death, enter the name of the trust and the trust's federal
employer identification number (FEIN). Do not enter the decedent's or
trustee's name or SSN.
If the seller is a non - grantor trust, enter the name of the trust and the
trust's FEIN. Do not enter trustee information.
If the seller is a single member disregarded LLC, enter the name and tax
identification number of the single member.
Real Estate Escrow Person (REEP): If you choose to provide a copy
of Form 593 -C to the buyer, delete the seller's tax identification number on
the buyer's copy.
Ownership Percentage
Enter your ownership percentage rounded to two decimal places (e.g.
66.67 %). If you are on the title for incidental purposes and you have no
financial ownership, enter 0.00 and skip to Part IV. You will not be withheld
upon.
Examples of sellers who are on title for incidental purposes are:
• Co- signers on title (e.g., parents co- signed to help their child qualify for
the loan).
• Family members on title to receive property upon the owner's death.
Page 4 Form 593 -C /Form 593 -E Booklet 2010
Part II Certifications That Fully Exempt Withholding
Line 1 - Principal Residence
To qualify as your principal residence under IRC Section 121, you (or the
decedent) generally must have owned and lived in the property as your main
home for at least two years during the five -year period ending on the date of
sale. Military and Foreign Service, get FTB Pub. 1032, Tax Information for
Military Personnel.
You can have only one main home at a time. If you have two homes and live
in both of them, the main home is the one you lived in most of the time.
There are exceptions to the two -year rule if the primary reason you are
selling the home is for a change in the place of employment, health, or
unforeseen circumstances such as death, divorce or termination of
registered domestic partnership, or loss of job, etc. For more information
about what qualifies as your principal residence or exceptions to the two -
year rule, get federal Publication 523, Selling Your Home. You can get this
publication at irs.gov, or call 800.829.3676.
If only a portion of the property qualifies as your principal residence, insert
the percentage allocated to the principal residence in the space above line 1
and inform the REEP.
The allocation method should• be the same as the seller used to determine
depreciation.
Line 2 — Property last used as your principal residence
If the property was last used as the seller's or decedent's principal residence
within the meaning of IRC Section 121 without regard to the two -year time
period, no withholding is required. If the last use of the property was as a
vacation home, second home, or rental, you do not qualify for the
exemption. You must have lived in the property as your main home.
If you have two homes and live in both of them, the main home is the one
you lived in most of the time.
Line 3 — Loss or Zero Gain
You have a loss or zero gain for California income tax purposes when the
amount realized is less than or equal to your adjusted basis. You must
complete Form 593 -E, Real Estate Withholding — Computation of Estimated
Gain or Loss, and have a loss or zero gain on line 16 to certify that the
transaction is fully exempt from withholding.
You may not certify that you have a net loss or zero gain just because you
do not receive any proceeds from the sale or because you feel you are
selling the property for less than what it is worth.
Line 4 — Involuntary Conversion
The property is being involuntarily or compulsorily converted when both of
the following apply:
The California real property is transferred because it was (or
threatened to be) seized, destroyed, or condemned within the meaning
of IRC Section 1033.
The transferor (seller) intends to acquire property that is similar or
related in service or use in order to be eligible for nonrecognition of
gain for California income tax purposes.
Get federal Publication 544, Sales and Other Dispositions of Assets, for more
information about involuntary conversions.
Line 5 — Non - recognition Under IRC Section 351 or 721
The transfer must qualify for nonrecognition treatment under IRC Section
351 (transferring to a corporation controlled by transferor) or IRC Section
721 (contributing to a partnership in exchange for a partnership interest).
Real Estate Escrow Person: If, during the escrow, an individual seller
transfers title to a corporation or partnership and then the corporation or
partnership transfers title to the buyer, then there are two transfers for
withholding purposes. Accordingly, two separate Forms 593 -C should be
completed for withholding purposes. The individual must complete one form
for the transfer to the corporation or partnership. The corporation or
partnership must complete the other form for the transfer to the buyer.
Line 6 — Corporation
A corporation has a permanent place of business in California if any of the
following apply:
It is organized and existing under the laws of California.
It is qualified to transact business in California through the California
Secretary of State.
It will maintain and staff a permanent office in California.
S corporations must withhold on nonresident S corporation shareholders. Get
FTB Pub. 1017, Resident and Nonresident Withholding Guidelines, for more
information.
Line 7 — Partnership or Limited Liability Company (LLC)
Partnerships and LLCs are required to withhold on nonresident partners and
members. For more information, get FTB Pub.1017.
Withholding is not required if the title to the property transferred is recorded
in the name of a California partnership or it is qualified to do business in
California.
Withholding is not required if the title to the property transferred is in the
name of an LLC, and the LLC meets both of the following:
• is classified as a partnership for federal and California income tax
purposes.
• is not a SMLLC that is disregarded for federal and California income tax
purposes.
If the LLC meets these conditions, the LLC must still withhold on nonresident
members. Get FTB Pub. 1017 for more information.
If the SMLLC is classified as a corporation for federal and California income
tax purposes, then the seller is considered a corporation for withholding
purposes. Refer to Line 6.
If the LLC is an SMLLC that is disregarded for federal and California income
tax purposes, then that single member is considered the seller and title to
the property is considered to be in the name of the single member for
withholding purposes.
When completing Form 593 -C as the single member of a disregarded LLC,
write on the bottom of the form that the information on the form is for the
single member of the LLC, so the REEP will understand why it is different
from the recorded title holder.
If the sin le member is Com lete Form 593 -C usin
An individual The individual's information
A corporation The corporation's information
A partnership The partnership's information
An LLC The single member's information
Line 8 — Tax - Exempt Entity
Withholding is not required if the seller is tax- exempt under either California
or federal law (e.g., religious, charitable, educational, not for profit
organizations, etc.).
Line 9 — Insurance Company, Individual Retirement Account,
Qualified Pension or Profit- Sharing Plan, or Charitable
Remainder Trust
Withholding is not required when the seller is an insurance company,
individual retirement account, qualified pension or profit- sharing plan, or a
charitable remainder trust.
Part III Certifications That May Partially or Fully Exempt
the Sale From Withholding
Complete Part III only if;you did not meet. any of the exemptions in 1.
Part II. If you.met an:exemption In Part II, slap to Part IY.
Line 10 — Simultaneous Exchange
If the California real property is part of a simultaneous like -kind exchange
within the meaning of IRC Section 1031, the transfer is exempt from
withholding. However, if the seller receives money or other property (in
addition to property that is a part of the like -kind exchange) exceeding
$1,500 from the sale, the withholding agent must withhold.
Line 11— Deferred Exchange
If the California real property is part of a deferred like -kind exchange within
the meaning of IRC Section 1031, the sale is exempt from withholding at the
time of the initial transfer. However, if the seller receives money or other
property (in addition to property that is a part of the like -kind exchange)
exceeding $1,500 from the sale, the withholding agent must withhold.
The intermediary or accommodator must withhold on all cash or cash
equivalent (boot) it distributes to the seller if the amount exceeds $1,500.
If the exchange does not take place or if the exchange does not qualify for
non recognition treatment, the intermediary or accommodator must withhold
31/3% (.0333) of the total sales price.
Line 12 — Installment Sale
For installment sales occurring on or after January 1, 2009, the buyer is
required to withhold on the principal portion of each installment payment if
the sale is structured as an installment sale. The buyer must complete and
sign Form 593 -I, Real Estate Withholding Installment Sale
Acknowledgement, and attach a copy of the promissory note with the first
installment payment.
When the withholding amount on the first installment principal payment is
sent to the FTB, the FTB must also receive a completed Form 593-I, a
completed Form 593, Real Estate Withholding Tax Statement, and a copy of
the promissory note.
Part IV Seller's Signature
you must sign this form and return it to your REEP by the close of escrow
for it to be valid. Otherwise, the withholding agent must withhold the full
31/3% (.0333) of the total sales price or the optional gain on sale
withholding amount from line 5 of Form 593 that is certified by the seller.
Any transferor (seller) who, for the purpose of avoiding the withholding
requirements, knowingly executes a false certificate is liable for a penalty of
$1,000 or 20% of the required withholding amount, whichever is greater.
Form 593 -C /Form 593 -E Booklet 2010 Page 5
YEAR Real Estate Withholding — CALIFORNIA FORM
2011 Computation of Estimated Gain or Loss 593 -E
#i^n due t„ a loss or 7mn gain or if you elect an optional gain on sale withholding amount.)
(You are required to complete this rung 11 you c, arm an o..a...,,., .. ___ -_ _ .___ _. _ _. _ �_ -- -
Seller or Transferor: SSN or ITIN
Name
Spouse's /RDP's name (if jointly owned)
Spouse's /RDP's SSN or ITIN (if jointly owned)
Address (suite, room, PO Box, or PMB no.)
❑FEIN ❑CA Corp. No. =SOS file no.
State
ZIP Code
City
Property address (if no street address, provide parcel number and county)
1 Selling price ........................................................................................................................................................................ ............................... 2
2 Selling expenses 3
................................................................................................................. ...............................
3 Amount realized. Subtract line 2 from line 1 ................................................................................................................. ...............................
4 Enter the price you paid to purchase the property (If you acquired the property other than by purchase,
see instructions, How to Figure Your Basis When You Did Not Purchase the Property) 4
5 Seller -paid points ....................................................... ............................... 5
6 Depreciation ............. basis ........................................................... ..........................I....
............ ...............................
........... ...............................
7 Other decreases to basis ......
8 Total decreases to basis. Add line 5 through line 7 .......................................... ................... ............................... 9
9 Subtract line 8 from line 4 ...................................................................................... �....... ...............................
10 Cost of additions and improvements ,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,, „,,,,,,,,,,,,,,,,,,,,,,,,,,,,, 11
11 Other increases to basis .............................................................. ...............................
12 Total increases to basis. Add line 10 and line 11 13
13 Adjusted basis. Add line 9 and line 12
........... ............ .. ............................................ ............................... 14
14 Enter any suspended passive activity losses from this property ........................................ ............................... 15
15 Add line 13 and line 14 ............................................................................................................................................. ...............................
16 Estimated gain or loss on sale. Subtract line 15 from line 3 and enter the amount here. If you have a loss or zero gain, skip lines 17
and 18. Complete the Seller's Signature area below and check the box on Form 593 -C, Part II line 3. If you have a gain, go to 16
line 17 ” " "'
17 Optional gain on sale withholding amount. Check the applicable box for the filing type.
❑ Individual 9.3% ❑ Corporation 8.84% ❑ Bank and Financial Corporation 10.84%
Non - California Partnership ❑ S Corporation 10.8% ❑ Financial S Corporation 12.8%
❑ 9.3%
Multiply the amount on line 16 by the tax rate for the filing type selected above and enter the result on line 17. This is the optional
gain on sale withholding amount.
if you elect the optional gain on sale withholding amount on line 17, go to Form 593 and check the appropriate box on line 4 (Boxes B -G) for the Optional
Gain on
Sale Election, and transfer the amount on line 17 to Form 593, line 5. 17
Sign Form 593 to certify the election ................................................... ........ ... b.y, ........................................................... ..............e"1 *.............
18 Total sales price withholding amount. Multiply the selling price on line 1 by 3 1/3% (.0333) and enter the amount on line 18.
This is the total sales price withholding amount.
If you select the total sales price withholding amount on line 18, check Box A "3 113% (.0333) x Total Sales Price" on line 4 of 18
Form 593, and transfer the amount on line 18 to Form 593, line 5 ............. ................................................................. ...............................
Seller's
Title and escrow persons and exchange accommodators are not authorized to provide legal or accounting advice for purposes of determining withholding
amounts. Transferors are strongly encouraged to consult with a competent tax professional for this purpose.
Under penalties of perjury, I hereby certify that the information provided above is, to the best of my knowledge, true and correct. I understand that I must retain
this form in my records for 5 years and that the Franchise Tax Board may review relevant escrow documents to ensure withholding compliance and if
conditions change, I will promptly inform the withholding agent. I understand that ,:ompleting this form does not exempt me from filing a California income tax
return to report this sale.
Seller's Name
Seller's Signature
Spouse's /RDP's Name (if jointly
owned)
Spouse's /RDP's Signature (if jointly
owned)
Date:
Date:
For Privacy Notice, get form FTB 1131. ___� 7151113 F— Form 593 -E C2 2011
Instructions for Form S93 -E
Real Estate Withholding — Computation of Estimated Gain or Loss
References in these instructions are to the Internal Revenue Code (IRC) as of January 1, 2009, and to the California Revenue and Taxation Code (R &TC).
In general, for taxable years beginning on or after January 1, 2010, California
law conforms to the Internal Revenue Code (IRC) as of January 1, 2009.
However, there are continuing differences between California and federal law.
When California conforms to federal tax law changes, we do not always adopt
all of the changes made at the federal level. For more information, go to
ftb.ca.gov and search for conformity. Additional information can be found in
FTB Pub. 1001, Supplemental Guidelines to California Adjustments, the
instructions for California Schedule CA (540 or 540NR), and the Business Entity
tax booklets.
Purpose
Use Form 593 -E, Real Estate Withholding — Computation of Estimated Gain or
Loss, to estimate the amount of your gain or loss for withholding purposes and
to calculate an optional gain on sale withholding amount. This form is used for
sales closing in 2011 and can be used by both individual and non individual
sellers.
You may use estimates when you complete this form, but the estimates must
not result in the calculation of a loss when you actually have a gain. Any
transferor (seller) who, for the purpose of avoiding the withholding
requirements, knowingly executes a false certificate is liable for a penalty of
$1,000 or 20% of the required withholding amount, whichever is greater.
This form is signed under penalty of perjury. The seller must keep this form for
5 years and provide it to the Franchise Tax Board (FTB) upon request.
However, the seller is not required to provide this form to the withholding
agent or buyer.
Who can complete this form?
The seller completes this form. Title and real estate escrow persons (REEP)
and exchange accommodators are not authorized to provide legal or
accounting advice for purposes of determining withholding amounts. Sellers
are strongly encouraged to consult with a tax professional for this purpose.
You can also download, view, and print federal forms and publications at
irs.gov.
For federal tax questions call the IRS at:
800.829.1040 Assistance for Individuals
800.829.4933 Assistance for businesses
Specific Instructions
Line 1— Selling Price
The selling price is the total amount you will receive for your property. It
includes money, as well as, all notes, mortgages, or other debts assumed by
the buyer as part of the sale, plus the fair market value of any other property
or any services you receive.
Line 2— Selling Expenses
Selling expenses include commissions, advertising fees, legal fees, and loan
charges that will be paid by the seller, such as loan placement fees or points.
Line 3 — Amount Realized
The amount realized is the selling price minus the selling expenses.
Line 4 — Purchase Price
If you acquired this property by purchase, enter your purchase price. Your
purchase price includes the down payment and any debt you incurred; such as
a first or second mortgage or promissory notes you gave the seller in payment
for the property. If you acquired the property by gift, inheritance, exchange, or
any way other than purchase, see instructions, How to Figure Your Basis When
You Did Not Purchase the Property.
Line 5 — Seller -Paid Points
Points are charges paid to obtain a loan. They may also be called loan
origination fees, maximum loan charges, loan discount, or discount points. If
the seller paid points for you when you acquired the property, enter the
amount paid by the seller on your behalf on line 5, unless you already
subtracted this item to arrive at the amount for line 4.
Line 6 — Depreciation
Enter the amount of depreciation you deducted, or could have deducted, on
your California income tax return for business or investment use of the
property under the method of depreciation you chose. If you took less
depreciation on your tax return than you could have under the method chosen,
you must enter the amount you could have taken under that method. If you
did not take a depreciation deduction, enter the full amount of depreciation
you could have taken. Get federal Publication 946, How to Depreciate
Property, for more information.
Depreciation Option - If you do not know how much depreciation you
deducted or were allowed, you can make an estimate of the amount of
depreciation (for withholding purposes only). To estimate the depreciation,
divide the purchase price plus the cost of additions and improvements by
27.5 and multiply that by the number of years you used the property for
business use (up to 27.5 years).
Example: Mary bought a house 20 years ago for $150,000 and has used i
as a rental property for the last 18 years. Prior to renting the house, she
added a pool which cost her $25,000. Mary's depreciation is estimated as
follows:
Cost
$150,000
Plus additions
25.000
Total
175,000
Divided by 27.5 =
6,364
Multiply by 18 years =
$114,552
Mary's estimated depreciation to enter on
line 6 is $114,552.
Line 7 - Other Decreases to Basis
Include any other amounts that decrease your basis, such as:
• Casualty or theft loss deductions and insurance reimbursements.
• Energy credits claimed for the cost of energy improvements added to your
basis.
• Payments received for granting an easement or right -of -way.
Line 10 - Additions and Improvements
These add to the value of your property, prolong its useful life, or adapt it to
new uses. Examples include: room additions, landscaping, new roof,
insulation, new furnace or air conditioner, remodeling, etc. The cost of
repairs may not be included unless they are part of an extensive remodeling
or restoration project. Do not include any additions or improvements on line
10 that were included on line 4.
Line 11 - Other Increases to Basis
Include the amounts paid for any other items that increase the basis of the
property, such as:
• Settlement fees and closing costs you incurred when you bought the
property.
• The amount you paid for special assessments for items such as water
connections, paving roads, and building ditches.
• The cost of restoring damaged property from a casualty loss, or cost of
extending utility service lines to the property.
Line 14 - Passive Activity Losses
You may only use suspended passive activity losses that directly relate to the
property sold. Other losses such as net operating losses, capital loss carry-
forwards, stock losses, and passive activity losses from other properties
cannot be used.
Line 16 - Estimated Gain or Loss on Sale
If you have a zero gain or loss, check the box on Form 593 -C, Real Estate
Withholding Certificate, line 3. Complete and sign Form 593 -C and give it to
your REEP. You will not be subject to withholding on this sale. Keep Form
593 -E for 5 years to document your calculations and provide to the FTB if
requested.
If you have a gain, this is your estimated amount of gain on the sale of your
California property. Go to line 17.
Line 17 — Optional Gain on Sale Withholding Amount
Multiply the amount on line 16 by the tax rate for the filing type selected and
enter the amount on line 17. You may compare this amount to the
withholding amount on the total sales price shown on line 18. If you elect the
optional gain on sale withholding amount on line 17, check the appropriate
box on line 4 (Boxes B -G) for the Optional Gain on Sale Election, on Form
593, then transfer the amount on line 17 to Form 593, Real Estate
Withholding Tax Statement, line 5. Sign Form 593 to certify the election.
Keep Form 593 -E for 5 years to document your calculations and provide to
the FTB upon request.
Line 18 —Total Sales Price Withholding Amount
Multiply the selling price on line 1 by 31/3% (.0333) and enter the amount on
line 18. If you select the standard withholding amount on line 18, check Box
A on line 4 of Form 593, and transfer the amount on line 18 to Form 593, line
5.
Form 593 -C /Form 593 -E Booklet 2010 Page i
How to Figure Your Basis When You Did Not Purchase the Property
The cost or purchase price of property is usually its basis for figuring gain or loss from its sale or other disposition. However, if you acquired the property by gift,
basis than its cost. The following instructions only reflect the general rules.
inheritance, exchange, or in some way other than purchase, you must use a otlier
Exceptions may apply. Get federal Publication 551, Basis of Assets, for more information. Sellers are strongly encouraged to consult with a tax professional for
this purpose.
How Property Was Received
How to Determine Your Basis
Property was received as a gift
Usually, your basis is the donor's adjusted basis at the time of the gift. Enter the donor's adjusted basis
on line 4. Then complete the rest of the form (except line 5) with your information after you received the
property.
If the fair market value (FMV) of the property at the time of the gift was less than the donor's adjusted
basis, get federal Publication 551 to determine your basis.
Property was inherited from
Usually, your basis is the FMV at the date of the individual's death. You can get that valuation from the
probate documents, or if there was no probate, use the appraised value at the date of death. Enter the
someone other than your
FMV on line 4. Then complete the rest of the form (except line 5) with your information after you
spouse /RDP
received the property.
If you or your spouse /RDP originally gave the property to the decedent within one year of the decedent's
death, get federal Publication 551 to determine your basis.
You owned the property
Your basis is the FMV of the total property at the date of your spouse's /RDP's death. Enter the FMV on
the form (except line 5) with your information after the date of death.
(as community property) with
line 4. Then complete the rest of
your spouse /RDP who died
6
You owned the property (in joint
Your basis is the sum of: 1) the FMV of your spouse's /RDP's half of the property at the date of your
spouse's /RDP's death; and, :!) the existing basis of your half of the property at the date of your
tenancy) with your spouse /RDP
spouse's /RDP's death. Enter the sum on line 4. Then complete the rest of the form (except line 5) with
who died
your information after the date of death.
Property received from your
Usually, your basis is the same as it would have been without this transfer. Complete Form 593 -E as if
spouse /RDP in connection to your
divorce/ termination of registered
you had been the only owner before and after the transfer.
If your spouse /RDP transferred the property to you before July 18, 1984, get federal Publication 551 to
domestic partnership
determine your basis.
Property received in exchange
Your basis will depend on w'iether you received the property in a nontaxable, taxable, or partially taxable
exchange. Get federal Publication 551 to determine your basis. Enter your basis on line 4. Then complete
for other property
the rest of the form. However, do not include any amounts on line 5 through line 10 that you included
on line 4.
Add the purchase price of the land and the cost of the building. Enter the total on line 4 and complete the
You built the house
(or other improvements)
rest of the form.
If deferred the gain from a previous home to this property, get federal Publication 551.
on the property being sold
you
Enter your basis in the property after the foreclosure on line 4. (You may need to get a tax professional
to help you with this calculation). Then complete the rest of the form (except for line 5) with your
You received the property in a
foreclosure
information after the foreclosure.
Page 8 Form 593 -C /Form 593 -E Booklet 2010
U^'&A# to r at rnlifnrnia Tax Inforfil'lation
Additional Information
To get a withholding form or publication, or to speak to a representative,
contact our Withholding Services and Compliance's automated telephone
services at:
888.792.4900, or
916.845.4900
FAX 916.845.9512
Or write to:
WITHHOLDING SERVICES AND COMPLIANCE
FRANCHISE TAX BOARD
PO BOX 942867
SACRAMENTO CA 94267 -0651
You can download, view, and print California tax forms and publications
at ftb.ca.gov.
Or to get forms by mail write to:
TAX FORMS REQUEST UNIT
FRANCHISE TAX BOARD
PO BOX 307
RANCHO CORDOVA CA 95741 -0307
Internet and Telephone Assistance
Website: ftb.ca.gov
Telephone: 800.852.5711 from within the United States
916.845.6500 from outside the United States
TTY/TDD: 800.822.6268 for persons with hearing or speech
impairments
Asistencia Por Internet y Teldfono
Sitio web: ftb.ca.gov
Telefono: 800.852.5711 dentro de los Estados Unidos
916.845.6500 fuera de los Estados Unidos
TTY/TDD: 800.822.6268 personas con discapacidades de la audicion
y del habla
Form 593 -C /Form 593 -E Booklet 2010 Page 9
SELLER'S CERTIFICATION UNDER
FOREIGN INVESTMENT IN REAL PROPERTY TAX ACT ( "FIRPTA ")
(26 U.S.C. 1445)
File No: SAR -2493
June 23, 2011
THIS SECTION FOR INDIVIDUAL TRANSFEROR:
Section 1445 of the Internal Revenue Code provides that a transferee (buyer) of a U.S. real property interest
must withhold tax if the transferor (seller) is a foreign person. To inform the transferee (buyer) that withholding
of tax is not required upon my disposition of a U.S. real property interest, I,
hereby certify the following:
1. I am not a nonresident alien for purposes of U.S. income taxation;
2. My U.S. taxpayer identification number (Social Security Number) is
3. My home address is
I understand that this certification may be disclosed to the Internal Revenue Service by the transferee and
that any false statement I have made here could be punished by fine, imprisonment, or both.
Under penalties of perjury I declare that I have examined this certification and to the best of my knowledge
and belief it is true, correct, and complete.
Date Signature
Typed or Printed Name
THIS SECTION FOR ENTITY TRANSFEROR:
Section 1445 of the Internal Revenue Code provides that a transferee of a U.S. real property interest must
withhold tax if the transferor is a foreign person. For U.S. tax purposes (including Section 1445), the owner of a
disregarded entity (which has legal title to a U.S. real property interest under local law) will be the transferor of
the property and not the disregarded entity. To inform the transferee that withholding of tax is not required
upon the disposition of a U.S. real property interest by _ [name of
transferor] ( "Transferor "), the undersigned hereby certifies the following on behalf of Transferor:
1. Transferor is not a foreign corporation, foreign partnership, foreign trust, or foreign estate (as
those terms are defined in the Internal Revenue Code and Income Tax Regulations);
2. Transferor is not a disregarded entity as defined in Section 1.1445- 2(b)(2)(iii);
3. Transferor's U.S. employer identification number is
4. Transferor's office address
is
Transferor understands that this certification may be disclosed to the Internal Revenue Service by transferee
and that any false statement contained herein could be punished by fine, imprisonment, or both.
Under penalties of perjury I declare that I have examined this certification and to the best of my knowledge
and belief it is true, correct, and complete, and I further declare that I have authority to sign this document on
behalf of Transferor.
Date Signature
Typed or Printed Name
U.S._California _FIRPTA Seller Affidavit-Open /Draw_Rev.(7 /12/04) Page 1 of 1 Pages
SELLER'S CERTIFICATION UNDER
FOREIGN INVESTMENT IN REAL PROPERTY TAX ACT ( "FIRPTA ")
(26 U.S.C. 1445)
File No: SAR -2493
June 23, 2011
THIS SECTION FOR INDIVIDUAL TRANSFEROR:
Section 1445 of the Internal Revenue Code provides that a transferee (buyer) of a U.S. real property interest
must withhold tax if the transferor (seller) is a foreign person. To inform the transferee (buyer) that withholding
of tax is not required upon my disposition of a U.S. real property interest, I,
hereby certify the following:
1. I am not a nonresident alien for purposes of U.S. income taxation;
2. My U.S. taxpayer identification number (Social Security Number) is
3. My home address is
I understand that this certification may be disclosed to the Internal Revenue Service by the transferee and
that any false statement I have made here could be punished by fine, imprisonment, or both.
Under penalties of perjury I declare that I have examined this certification and to the best of my knowledge
and belief it is true, correct, and complete.
Date Signature
Typed or Printed Name
THIS SECTION FOR ENTITY TRANSFEROR:
Section 1445 of the Internal Revenue Code provides that a transferee of a U.S. real property interest must
withhold tax if the transferor is a foreign person. For U.S. tax purposes (including Section 1445), the owner of a
disregarded entity (which has legal title to a U.S. real property interest under local law) will be the transferor of
the property and not the disregarded entity. To inform the transferee that withholding of tax is not required
upon the disposition of a U.S. real property interest by _ [name of
transferor] ( "Transferor "), the undersigned hereby certifies the following on behalf of Transferor:
1. Transferor is not a foreign corporation, foreign partnership, foreign trust, or foreign estate (as
those terms are defined in the Internal Revenue Code and Income Tax Regulations);
2. Transferor is not a disregarded entity as defined in Section 1.1445- 2(b)(2)(iii);
3. Transferor's U.S. employer identification number is
4. Transferor's office address
is
Transferor understands that this certification may be disclosed to the Internal Revenue 5ervlce Dy iransferee
and that any false statement contained herein could be punished by fine, imprisonment, or both.
Under penalties of perjury I declare that I have examined this certification and to the best of my knowledge
and belief it is true, correct, and complete, and I further declare that I have authority to sign this document on
behalf of Transferor.
Date Signature
Typed or Printed Name
U.S._California _FIRPTA Seller Affidavit- Open /Draw_Rev.(7 /12/04) Page 1 of 1 Pages
SELLER'S CERTIFICATION UNDER
FOREIGN INVESTMENT IN REAL PROPERTY TAX ACT ( "FIRPTA ")
(26 U.S.C. 1445)
File No: SAR -2493
June 23, 2011
THIS SECTION FOR INDIVIDUAL TRANSFEROR:
Section 1445 of the Internal Revenue Code provides that a transferee (buyer) of a U.S. real property interest
must withhold tax if the transferor (seller) is a foreign person. To inform the transferee (buyer) that withholding
of tax is not required upon my disposition of a U.S. real property interest, I,
hereby certify the following:
1. I am not a nonresident alien for purposes of U.S. income taxation;
2. My U.S. taxpayer identification number (Social Security Number) is
3. My home address is
I understand that this certification may be disclosed to the Internal Revenue Service by the transferee and
that any false statement I have made here could be punished by fine, imprisonment, or both.
Under penalties of perjury I declare that I have examined this certification and to the best of my knowledge
and belief it is true, correct, and complete.
Date Signature
Typed or Printed Name
THIS SECTION FOR ENTITY TRANSFEROR:
Section 1445 of the Internal Revenue Code provides that a transferee of a U.S. real property interest must
withhold tax if the transferor is a foreign person. For U.S. tax purposes (including Section 1445), the owner of a
disregarded entity (which has legal title to a U.S. real property interest under local law) will be the transferor of
the property and not the disregarded entity. To inform the transferee that withholding of tax is not required
upon the disposition of a U.S. real property interest by _ [name of
transferor] ('Transferor "), the undersigned hereby certifies the following on behalf of Transferor:
1. Transferor is not a foreign corporation, foreign partnership, foreign trust, or foreign estate (as
those terms are defined in the Internal Rev enue Code and Income Tax Regulations);
2. Transferor is not a disregarded entity as defined in Section 1.1445- 2(b)(2)(iii);
3. Transferor's U.S. employer identification number is
4. Transferor's office address
is
Transferor understands that this certification may be disclosed to the Internal Revenue Service by transferee
and that any false statement contained herein could be punished by fine, imprisonment, or both.
Under penalties of perjury I declare that I have examined this certification and to the best of my knowledge
and belief it is true, correct, and complete, and I further declare that I have authority to sign this document on
behalf of Transferor.
Date Signature
Typed or Printed Name
U.S._California _FIRPTA Seller Affidavit- Open /Draw_Rev.(7 /12/04)
Page 1 of 1 Pages
RECORDING REQUESTED BY
Cornerstone Title Company
AND WHEN RECORDED MAIL DOCUMENT TO:
Lakshman Yagati and Anuradha Yagati
10346 Scenic Blvd
Cupertino, CA 95014
A.P.N.: 357 -08 -037
Space Above This Line for Recorder's Use Only
GRANT DEED
File No.: SAR -2493 (ML)
The Undersigned Grantor(s) Declare(s): DOCUMENTARY TRANSFER TAX $1,584.00; CITY TRANSFER TAX
$.00; SURVEY MONUMENT FEE $0.00
[ X ] computed on the consideration or full value of property conveyed, OR
[ ] computed on the consideration or full valueless value of liens and /or encumbrances remaining at time of sale,
[ ] unincorporated area; [X ] City of Cupertino, and
[X
Signature of Declarant
FOR A VALUABLE CONSIDERATION, receipt of which is hereby acknowledged,
David Knapp and Kay L. Knapp, Trustees of The 2000 Knapp Family Trust and The City of Cupertino as
tennants in common
hereby GRANTS to Lakshman Yagati and Anuradha Yagati
the following described property in the City of Cupertino, County of Santa Clara, State of CA:
See Exhibit "A" attached hereto and made part hereof for complete legal description
Mail Tax Statements To: SAME AS ABOVE
Grant Deed - continued
A.P.N.: 357 -08 -037
Dated: 6/23/2011
The 2000 Knapp Family Trust
By: David Knapp, Trustee
By: Kay L. Knapp, Trustee
City of Cupertino
By: Gilbert Wong, Mayor
STATE OF )SS
COUNTY OF )
On
P bl' ersonall appeared
before me,
Date: 6/23/2011
File No.: SAR -2493 (MIL)
Notary
U ic, p y
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.
Signature
My Commission Expires:
Notary
Name:
Notary Registration
Number:
This area for official notarial seal
Notary
Phone:
County of Principal Place of
Business:
Page 2 of 2
Exhibit A
Real property in the City of CUPERTINO, County of Santa Clara, State of CA, described as follows:
Lot 26, as shown on that certain Map entitled "Map of Monta Vista Park ", which Map was filed for record in the Office
of the Recorder of the County of Santa Clara, State of California, on April 11, 1917 in Book P of Maps at page(s) 19.
Excepting therefrom any portion of the land described in that Quitclaim Deed Recorded July 6, 1964 in Book 6670,
page 27, Official Records, Santa Clara County.
Also excepting therefrom the right to pump, take or otherwise extract water from the underground basin or any
underground strata as quitclaimed to the City of Cupertino in the deed recorded in the Office of the Santa Clara
County Recorders office on March 22, 1989 in Book K886), page 522, Official Records.
APN: 357 -08 -037
Cornerstone Title Company
'Certification of Trust
(Pursuant to California Probate Code 018100.5)
I /We, David Knapp and Kay L Knapp , trustee(s) confirm the following facts:
The 2000 Knapp Family Trust (Name of Trust)
is currently in existence and was executed on
2. The settlor(s) of the trust are: David Knapp and Kay L. Knapp
3. The currently acting trustee(s) of the trust is (are): David Knapp and Kay L. Knapp
4. The power of the trustee(s) includes:
(a) The powers to sell, convey and exchange [ ] Yes [ ] No (check one)
(b) The power to borrow money and encumber the trust property with a deed of trust or
mortgage
[ ] Yes [ ] No (check one).
The trust is [ ] REVOCABLE [ ] IRREVOCP,BLE (check one) and the following party(ies), if
any, is (are) identified as having the power to revoke the trust:
6. The trust [ ] DOES [ ] DOES NOT (check one) have multiple trustees. If the trust has
multiple trustees, the signatures of:
(mark one of the following:)
[ ] ALL
[ ] ANY (specify number) of the Trustees are required to exercise the powers of
the Trust.
7. The Trust identification number is:
No /Employer ID).
8. Title to trust assets is to be taken in the following manner:
(Social Security
The undersigned trustee(s) declare(s) that the trust has not been revoked, modified or amended in any
manner which would cause the representations contained herein to be incorrect. This Certification is
executed by all of the currently acting trustees of the Trust pursuant to Section 18100.5 of the Probate
Code.
David Knapp, Trustee
(ALL SIGNATURES MUST BE ACKNOWLEDGED)
Kay L. Knapp, Trustee
U.S._California Trust Certification_Rev.(7 /12/04) Page 1 of 2 Pages
June 23, 2011 Certification cf Trust - continued File No.: 5AR -2493 ML
STATE OF
COUNTY OF
On
me,
appeared
)SS
before
Notary Public, personally
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.
Signature
My Commission Expires:
Notary Name:
Notary Registration Number:
This area for official notarial seal
Notary Phone:
County of Principal Place of Business:
U.S.—California Trust Certification_Rev.(7 /12/04) Page 2 of 2 Pages
City of Cupertino Phone (408) 777 -3280 / (408) 777-3285
ATTN: David Woo or Jennifer Chang Fax: (408) 777 -3109
Finance Department Email: davidw @cupertino.org or
10300 Torre Avenue JenniferC @cupertino.org
Cupertino, CA 95014 -3202
PAYOFF DEMAND STATEMENT
Statement Date: 6/23/2011
Statement Void After: 7/5/2011
Mailed To: Cornerstone Title Company
20520 Prospect Rd, Ste 300
Saratoga, CA 95070
Faxed To: (408) 446 -4452
Escrow #: SAR -2493 (ML)
Property Address:
10346 Scenic Boulevard
Cupertino, CA 95014
Date of original loan
11/1/2000
Original loan amount
265,000.00
Principal Balance as of 6/30/2011
198,847,90
Deferred Interest
21,067.66
Statement Fee
Total Payoff Due on Loan
:'.19,915.56
Total Due ;!19,915.56
PLUS ADDITIONAL INTEREST SHOWN BELOW
Daily Interest
lFrorn
ITo
I Interest Rate
$ 17.620133
6/24/2011
7/8/20111
3.1900%
Daily Interest = Principal Balance x Interest Rate divided by 360
Payoff funds must be made payable to CITY OF CUPERTINO and will be accepted by WIRE
or CERTIFIED FUNDS only. They MUST reference the property address and borrower's name
in the OBI (Originator Beneficiary Information) field of the wire transfer or on the face of
the check and must be sent per the instructions below. Failure to do so may cause delays
resulting in additional interest due or the return of the funds to the remitter. Funds
received after 3:00 pm PST may be posted the following business day.
Wire Funds to: Mail Funds to:
Wells Fargo Bank N.A. City of Cupertino
ABA Routing # 121000248 ATTN: David Woo
Beneficiary Account # 4121038749 Finance Department
Account Name: City of Cupertino 10300 Torre Avenue
Cupertino, CA 95014 -3202
David Woo, Finance Director
CORN R STO N E Cornerstone Title
Privacy Policy
T E T L I' 0 M V A N Y
We Are Committed to Safeguarding Customer Information
In order to better serve your needs now and in the future, we may ask you to provide us with certain information.
We understand that you may be concerned about what we will do with such information — particularly any
personal or financial information. We agree that you have a right to know how we will utilize the personal
information you provide to us. Therefore, together with our parent company, The First American Corporation, we
have adopted this Privacy Policy to govern the use and handling of your personal information.
Applicability
This Privacy Policy governs our use of the information which you provide to us. It does not govern the manner in
which we may use information we have obtained from any other source, such as information obtained from a
public record or from another person or entity. First American has also adopted broader guidelines that govern
our use of personal information regardless of its source. First American calls these guidelines its Fair Information
Values, a copy of which can be found on our website at www.firstam.com.
Types of Information
Depending upon which of our services you are utilizing, the types of nonpublic personal information that we may
collect include:
Information we receive from you on applications, forms and in other communications to us, whether in
writing, in person, by telephone or any other means;
• Information about your transactions with us, our affiliated companies, or others; and
• Information we receive from a consumer reporting agency.
Use of Information
We request information from you for our own legitimate business purposes and not for the benefit of any
nonaffiliated party. Therefore, we will not release your information to nonaffiliated parties except: (1) as
necessary for us to provide the product or service you have requested of us; or (2) as permitted by law. We may,
however, store such information indefinitely, including the period after which any customer relationship has
ceased. Such information may be used for any internal purpose, such as quality control efforts or customer
analysis. We may also provide all of the types of nonpublic personal information listed above to one or more of
our affiliated companies. Such affiliated companies include financial service providers, such as title insurers,
property and casualty insurers, and trust and invest-nent advisory companies, or companies involved in real
estate services, such as appraisal companies, home warranty companies, and escrow companies. Furthermore,
we may also provide all the information we collect, as described above, to companies that perform marketing
services on our behalf, on behalf of our affiliated companies, or to other financial institutions with whom we or our
affiliated companies have joint marketing agreements.
Former Customers
Even if you are no longer our customer, our Privacy Policy will continue to apply to you.
Confidentiality and Security
We will use our best efforts to ensure that no unauthorized parties have access to any of your information. We
restrict access to nonpublic personal information abort you to those individuals and entities who need to know
that information to provide products or services to you. We will use our best efforts to train and oversee our
employees and agents to ensure that your information will be handled responsibly and in accordance with this
Privacy Policy and First American's Fair Information Values. We currently maintain physical, electronic, and
procedural safeguards that comply with federal regulations to guard your nonpublic personal information.
U.S._California _Privacy Policy—Rev. (7/12/2004)
File No.: SAR -2493
The parties understand and acknowledge:
1. SPECIAL DISCLOSURES:
A. DEPOSIT OF FUNDS & DISBURSEMENTS
Unless directed in writing to establish a separate, interest
together with all necessary taxpayer reporting information,
be deposited in general escrow accounts in a federally insured financial
institution including those affiliated with Escrow Holder ("depositories'D. All
disbursements shall be made by Escrow Holder's check or by wire transfer
unless otherwise instructed in writing. The Good Funds Law (California
Insurance Code 12413.1) mandates that Escrow Holder may not disburse
funds until the funds are, in fact, available in Escrow Holder's account. Wire
transfers are immediately disbursable upon confirmation of receipt. Funds
deposited by a cashier's or certified check are generally available on the
next banking day following deposit. Funds deposited by a personal check
and other types of instruments may not be available until confirmation
from Escrow Holder's bank which can vary from 2 to 10 days.
B. DISCLOSURE OF POSSIBLE BENEFITS TO ESCROW HOLDER
As a result of Escrow Holder maintaining its general escrow accounts with
the depositories, Escrow Holder may receive certain financial benefits such
as an array of bank services, accommodations, loans or other business
transactions from the depositories ( "collateral benefits "). All collateral
benefits shall accrue to the sole benefit of Escrow Holder and Escrow
Holder shall have no obligation to account to the parties to this escrow for
the value of any such collateral benefits.
Escrow General Provisions
insurance policy(ies). Buyer will provide a completed Preliminary Change of
Ownership Report form ( "PCOR "). If Buyer fails to provide the PCOR,
Escrow Holder shall close escrow and charge Buyer any additional fee
bearing account incurred for recording the documents without the PCOR. Escrow Holder is
all funds shall released from any liability in connection with same.
C. MISCELLANEOUS FEES
Escrow Holder may incur certain additional costs on behalf of the parties
for services performed, or fees charged, by third parties. The fees charged
by Escrow Holder for services including, but not limited to, wire transfers,
overnight delivery/courier services, recording fees, notary fees, etc. may
include a mark up over the direct cost of such services to reflect the
averaging of direct, administrative and overhead charges of Escrow Holder
for such services which shall, in no event, exceed $10 for each markup.
D. METHOD TO DELIVER PAYOFF TO LENDERS /LIENHOLDERS
To minimize the amount of interest due on any existing loan or lien, Escrow
Holder will deliver the payoff funds to the lender /lienholder in an
expeditious manner as demanded by the lender /lienholder using (a)
personal delivery, (b) wire transfer, or (c) overnight delivery service, unless
otherwise directed in writing by the affected party.
2. PRORATIONS & ADJUSTMENTS
The term "close of escrow" means the date on which documents are
recorded. All prorations and /or adjustments shall be made to the
close of escrow based on the number of actual days, unless
otherwise instructed in writing.
3. CONTINGENCY PERIODS
Escrow Holder shall not be responsible for monitoring contingency
time periods between the parties. The parties shall execute such
documents as may be requested by Escrow Holder to confirm the
status of any such periods.
4. REPORTS
As an accommodation, Escrow Holder may agree to transmit orders for
inspection, termite, disclosure and other reports if requested, in writing or
orally, by the parties or their agents. Escrow Holder shall deliver copies of
any such reports as directed. Escrow Holder is not responsible for
reviewing such reports or advising the parties of the content of same.
S. INFORMATION FROM AFFILIATED COMPANIES
Escrow Holder may provide the parties' information to and from its affiliates
in connection with the offering of products and services from these
affiliates.
6. RECORDATION OF DOCUMENTS
7. PERSONAL PROPERTY TAXES
No examination, UCC search, insurance as to personal property and /or the
payment of personal property taxes is required unless otherwise instructed
in writing.
8. REAL PROPERTY TAXES
Real property taxes are prorated based on the most current available tax
statement from the tax collector's office. Supplemental taxes may be
assessed as a result of a change in ownership or completion of
construction. Adjustments due either party based on the actual new tax bill
issued after close of escrow or a supplemental tax bill will be made by the
parties outside of escrow and Escrow Holder is released of any liability in
connection with such adjustments. The first installment of California real
property taxes is due November 111 (delinquent December 10`") and the
second installment is due February 111 (delinquent April 10`"). If a tax bill is
not received from the County at least 30 days prior to the due date, buyer
should contact the County Tax Collector's office and request one. Escrow
Holder is not responsible for same.
9. CANCELLATION OF ESCROW
(a) Any party desiring to cancel this escrow shall deliver written notice of
cancellation to Escrow Holder. Within a reasonable time after receipt of
such notice, Escrow Holder shall send by regular mail to the address on the
escrow instructions, one copy of said notice to the other party(ies). Unless
written objection to cancellation is delivered to Escrow Holder by a party
within 10 days after date of mailing, Escrow Holder is authorized, at its
option, to comply with the notice and terminate the escrow. If a written
objection is received by Escrow Holder, Escrow Holder is authorized, at its
option, to hold all funds and documents in escrow (subject to the funds
held fee) and to take no other action until otherwise directed by either the
parties' mutual written instructions or a final order of a court of competent
jurisdiction. If no action is taken on this escrow within 6 months after the
closing date specified in the escrow instructions, Escrow Holder's
obligations shall, at its option, terminate. Upon termination of this escrow,
the parties shall pay all fees, charges and reimbursements due to Escrow
Holder and all documents and remaining funds held in escrow shall be
returned to the parties depositing same.
(b) Notwithstanding the foregoing, upon receipt of notice of cancellation by
a seller in a transaction subject to the Home Equity Sales Contract law (CC
§1695 et seq.), Escrow Holder shall have the right to unilaterally cancel the
escrow and may return all documents and funds without consent by or
notice to the buyer.
10. CONFLICTING INSTRUCTIONS & DISPUTES
If Escrow Holder becomes aware of any conflicting demands or claims
concerning this escrow, Escrow Holder shall have the right to discontinue
all further acts on Escrow Holder's part until the conflict is resolved to
Escrow Holder's satisfaction. Escrow Holder has the right at its option to file
an action in interpleader requiring the parties to litigate their claims /rights.
If such an action is filed, the parties jointly and severally agree (a) to pay
Escrow Holder's cancellation charges, costs (including the funds held fees)
and reasonable attorneys' fees, and (b) that Escrow Holder is fully released
and discharged from all further obligations under the escrow. If an action
is brought involving this escrow and /or Escrow Holder, the party(ies)
involved in the action agree to indemnify and hold the Escrow Holder
harmless against liabilities, damages and costs incurred by Escrow Holder
(including reasonable attorneys' fees and costs) except to the extent that
such liabilities, damages and costs were caused by the negligence or willful
misconduct of Escrow Holder.
Escrow Holder is authorized to record documents delivered through escrow
which are necessary or proper for the issuance of the requested title
THIS COMPANY CONDUCTS ESCROW BUSINESS UNDER CERTIFICATE OF AUTHORITY
ISSUED BY THE STATE OF CALIFORNIA DEPARTMENT OF INSURANCE.
Page 1 of 2 Pages
Form 1610
Escrow General Provisions
11. USURY
Escrow Holder is not to be concerned with usury as to any loans or
encumbrances in this escrow and is hereby released of any responsibility
and /or liability therefore.
12. AMENDMENTS TO ESCROW INSTRUCTIONS
Any amendment to the escrow instructions must be in writing, executed
by all parties and accepted by Escrow Holder. Escrow Holder may, at its
sole option, elect to accept and act upon oral instructions from the
parties. If requested by Escrow Holder the parties agree to confirm said
instructions in writing as soon as practicable. The escrow instructions as
amended shall constitute the entire escrow agreement between the
Escrow Holder and the parties hereto with respect to the subject matter of
the escrow.
13. INSURANCE POLICIES
In all matters relating to insurance, Escrow Holder may assume that each
policy is in force and that the necessary premium has been paid. Escrow
Holder is not responsible for obtaining fire, hazard or liability insurance,
unless Escrow Holder has received specific written instructions to obtain
such insurance prior to close of escrow from the parties or their
respective lenders.
14. COPIES OF DOCUMENTS; AUTHORIZATION TO RELEASE
Escrow Holder is authorized to rely upon copies of documents, which
include facsimile, electronic, NCR, or photocopies as if they were an
originally executed document. If requested by Escrow Holder, the
originals of such documents shall be delivered to Escrow Holder. Escrow
Holder may withhold documents and /or funds due to the party until such
originals are delivered. Documents to be recorded MUSTcontain original
signatures. Escrow Holder may furnish copies of any and all documents
to the lender(s), real estate broker(s), attorney(s) and /or accountant(s)
involved in this transaction upon their request. Delivery of documents by
escrow to a real estate broker or agent who is so designated in the
purchase agreement shall be deemed delivery to the principal.
15. EXECUTION IN COUNTERPART
The escrow instructions and any amendments may be executed in one or
more counterparts, each of which shall be deemed an original, and all of
which taken together shall constitute the same instruction.
16. TAX REPORTING, WITHHOLDING & DISCLOSURE
The parties are advised to seek independent advice concerning the tax
consequences of this transaction, including but not limited to, their
withholding, reporting and disclosure obligations. Escrow Holder does not
provide tax or legal advice and the parties agree to hold Escrow Holder
harmless from any loss or damage that the parties may incur as a result
of their failure to comply with federal and /or state tax laws.
WITHHOLDING OBLIGATIONS ARE THE EXCLUSIVE
OBLIGATIONS OF THE PARTIES. ESCROW HOLDER IS NOT
RESPONSIBLE TO PERFORM THESE OBLIGATIONS UNLESS
ESCROW HOLDER AGREES IN WRITING.
A. TAXPAYER IDENTIFICATION NUMBER REPORTING
Federal law requires Escrow Holder to report seller's social security
number or tax identification number (both numbers are hereafter
referred to as the "TIN'S, forwarding address, and the gross sales price
to the Internal Revenue Service (IRS's. To comply with the USA
PATRIOT Act, certain taxpayer identification information (including, but
not limited to, the TIN) may be required by Escrow Holder from certain
persons or entities involved (directly or indirectly) in the transaction prior
to closing.
Escrow cannot be closed nor any documents recorded until the
information is provided and certified as to its accuracy to Escrow Holder.
The parties agree to promptly obtain and provide such information as
requested by Escrow Holder.
B. State Withholding & Reporting
Under California law (Rev & Tax Code §18662); a buyer may be required
to withhold and deliver to the Franchise Tax Board (FTB) an amount
equal to 3.33% of the sales price ( "Basic Withholding ") in the case of
disposition of California real property interest ( "Real Property") by
either: 1) a seller who is an individual, trust or estate or when the
disbursement instructions authorize the proceeds to be sent to a
financial intermediary of seller; OR 2) a corporate seller that has no
permanent place of business in California immediately after the transfer
of title to the Real Property. Buyer may be subject to a penalty (equal to
the greater of 10% of the amount required to be withheld or $500) for
failing to withhold and transmit the funds to FTB in the time required by
law. Buyer is not required to withhold any amount and will not be
>ubject to penalty for failure to withhold if: a) the sales price of the Real
Property does not exceed $100,000; b) the seller executes a written
t:ertificate under penalty of perjury certifying that the seller is a
(: orporation with a permanent place of business in California; OR c) the
,seller, who is an individual, trust, estate or a corporation without a
permanent place of business in California, executes a written certificate
under penalty of perjury certifying one of the following: (i) the Real
Property was the seller's or decedent's principal residence (as defined
In IRC §121); (ii) Real Property being conveyed was last used by the
seller as sellers principal residence within the meaning of IRC §121
;even if the seller did not meet the two out of the last five years
requirement or one of the special circumstances in IRC §121); (iii) the
Real Property is or will be exchanged for property of like -kind (as
defined in IRC §1031) and that the seller intends to acquire property
similar or related in service or use so as to be eligible for
nonrecognition of gain for California income tax purposes under IRC
51031; (iv) the Real Property has been compulsorily or involuntarily
converted (as defined in IRC §1033) and the seller intends to acquire
property similar or related in service or use so as to be eligible for
nonrecognition of gain for California income tax purposes under IRC
§1033; or (v) the Real Property sale will result in a loss (or net gain not
required to be recognized) for California income tax purposes. Seller is
subject to penalties for knowingly filing a fraudulent certificate for the
purpose of avoiding the withholding laws.
FOR CLOSINGS AFTER JANUARY 1, 2007:
Seller may elect an alternative to Basic Withholding by certifying the amount
to withhold which must be equal to the applicable maximum tax rate on the
actual gain of the transferred property ("Alternative Withholding'). The
written certification must be made under penalty of perjury and false
certifications may result in criminal and civil penalties.
Contact FTB: For additional information regarding California
withholding or for the Alternative Withholding, contact the Franchise
Tax Board at (toll free) 888 - 792 - 4900), by e-mail WSCS.GEN @ftb.ca.gov;
or visit their website at www.ftb.ca.gov.
C. FEDERAL WITHHOLDING & REPORTING
Certain federal reporting and withholding requirements exist for real
estate transactions where the seller (transferor) is a non - resident alien,
a non - domestic corporation, partnership, or limited liability company;
or a domestic corporation, partnership or limited liability company
controlled by non - residents; or non - resident corporations, partnerships
or limited liability companies.
D. TAXPAYER IDENTIFICATION DISCLOSURE
Federal and state laws require that certain forms include a party's TIN and
that such forms or copies of the forms be provided to the other party and to
the applicable governmental authorities. Parties to a real estate transaction
involving seller - provided financing are required to furnish, disclose, and
include the other party's TIN in their tax returns. Escrow Holder is authorized
to release a party's TINS and copies of statutory forms to the other party and
to the applicable governmental authorities in the foregoing circumstances.
er harmless against any fees, costs, or
ecause of the release of their TIN as
The parties agree to hold Escrow Hold
judgments incurred and /or awarded b
authorized herein.
THIS COMPANY CONDUCTS ESCROW BUSINESS UNDER CERTIFICATE OF AUTHORITY
ISSUED BY THE STATE OF CALIFORNIA DEPARTMENT OF INSURANCE.
Page 2 of 2 Pages
Form 1610
Order Number: SAR -2493
Page Number: 1
CORNERSTONE
Cornerstone Title Company
20520 Prospect Road #300
Saratoga, CA 95070
PH: 408.446.4435 FX:408.446.4452
READ AND APPROVED:
Update Mo. 1 T.he uxders fmcd. also decl,res that there are no
otivel liens m- crcumbrwicea affecting the property
TO the `pest of hiOierhheir knowledge
KATE ENGELBRECHT
COLDWELL BANKER
12029 SARATOGA- SUNNYVALE RD.
SARATOGA, CA 95070 REAID 8 �1 PF",0 \1ED
(408)996 -1100
Escrow Officer: MELANIE LO
Email: melanie.lo @cstitleco.com
Escrow Assistant: Jona Do
Email: jona.do @cstitleco.com
E -Mail Loan Documents to: saratoga .ctco @cornerstonetitleCO.com
Owner: David Knapp, City of Cupertino, Kay Knapp
Property: 10346 SCENIC BOULEVARD
CUPERTINO, CA 95014 -2770
CornerStone Title Company
Order Number: SAR -2493
Page Number: 2
PRELIMINARY REPORT
In response to the above referenced application for a policy of title insurance, this company hereby reports
that it is prepared to issue, or cause to be issued, as of the! date hereof, a Policy or Policies of Title Insurance
describing the land and the estate or interest therein hereinafter set forth, insuring against loss which may be
sustained by reason of any defect, lien or encumbrance not shown or referred to as an Exception below or not
excluded from coverage pursuant to the printed Schedules, Conditions and Stipulations of said Policy forms.
The printed Exceptions and Exclusions from the coverage and Limitations on Covered Risks of said policy or
policies are set forth in Exhibit A attached. The policy to be issued may contain an arbitration clause. When.the
Amount of Insurance is less than that set forth in the arbitration clause, all arbitrable matters shall be
arbitrated at the option of either the Company or the Insured as the exclusive remedy of the parties.
Limitations on Covered Risks applicable to the CLTA and ALTA Homeowner's Policies of Title Insurance which
establish a Deductible Amount and a Maximum Dollar Limit of Liability for certain coverages are also set forth
in Exhibit A. Copies of the policy forms should be read. They are available from the office which issued this
report.
Please read the exceptions shown or referred to below and the exceptions and exclusions set
forth in Exhibit A of this report carefully. The exceptions and exclusions are meant to provide you
with notice of matters which are not covered under the terms of the title insurance policy and
should be carefully considered.
It is important to note that this preliminary report is not a written representation as to the
condition of title and may not list all liens, defects, and encumbrances affecting title to the land.
This report (and any supplements or amendments hereto) is issued solely for the purpose of facilitating the
issuance of a policy of title insurance and no liability is assumed hereby. If it is desired that liability be assumed
prior to the issuance of a policy of title insurance, a Binder or Commitment should be requested.
CornerStone: Title Company
Order Number: SAR -2493
Page Number: 3
Dated as of Friday, June 03, 2011 at 7:30 A.M.
The form of Policy of title insurance contemplated by this report is:
ALTA /CLTA Homeowner's Policy of Title Insurance (2008) and /or ALTA Expanded Coverage Residential Loan
Policy (2008) if the land described is an improved residential lot or condominium unit on which there is located
a one -to -four family residence; or ALTA Standard Owner's Policy 2006 and /or the ALTA Loan Policy 2006
(06 -17-
06) if the land described is an unimproved residential lot or condominium unit
A specific request should be made if another form or additional coverage is desired.
Title to said estate or interest at the date hereof is vested in:
DAVID KNAPP and KAY L. KNAPP, TRUSTEES OF THE 2000 KNAPP FAMILY TRUST AND THE CITY OF
CUPERTINO AS TENANTS IN COMMON
The estate or interest in the land hereinafter described or referred to covered by this Report is:
A FEE.
The Land referred to herein is described as follows:
(See attached Legal Description)
At the date hereof exceptions to coverage in addition to the printed Exceptions and Exclusions in said
policy form would be as follows:
General and special taxes and /or assessments for the fiscal year 2011 - 2012, a lien, but not yet due or
payable.
2. Said property is included within the boundaries of County Library District. Said assessment is currently
collected with the county taxes.
Note: Said assessment is levied by a Communities Facilities ("Mello - Roos' District.
3. The lien of supplemental taxes, if any, assessed pursuant to the provisions of Section 75, et seq. of the
Revenue and Taxation Code of the State of California.
CornerStone Title Company
4.
5.
Order Number: SAR -2493
Page Number: 4
Easements affecting those portions of said land and for the purposes stated herein and
incidental purposes as provided in an instrument,
In favor of:
City of Cupertino
For:
roadway and public utility purposes
Recorded:
3/22/1989, 10047660
Affects:
the west 10 feet
A deed of trust to secure an indebtedness or obligation as stated therein, and any other amounts or
obligations under the terms thereof.
Dated: 10/25/2000
Trustor /Borrower: DAVID KNAPP and KAY L. KNAPP, INDIVIDUALLY AND AS TRUSTEES OF THE
2000 KNAPP FAMILY TRUST
Trustee: FIDELITY NATIONAL TITLE COMPANY
Beneficiary/Lender: CITY OF CUPERTINO
Amount/Obligation: $265,000.00
Recorded: 01/22/2001, 15532377
6. The effect of instruments, proceedings, liens, decrees or other matters which do not specifically
describe said land but which, if any do exist, may affect the title or impose liens or encumbrances
thereon. The name search necessary to ascertain the existence of such matters has not been
completed and in order to do so, we require a signed Statement of Identity from or on behalf of David
Knapp.
CornerStore Title Company
Order Number: SAR -2493
Page Number: 5
INFORMATIONAL NOTES
Note: The policy to be issued may contain an arbitration clause. When the Amount of Insurance is less than
the certain dollar amount set forth in any applicable arbitration clause, all arbitrable matters shall be arbitrated
at the option of either the Company or the Insured as the exclusive remedy of the parties. If you desire to
review the terms of the policy, including any arbitration clause that may be included, contact the office that
issued this Commitment or Report to obtain a sample of the policy jacket for the policy that is to be issued in
connection with your transaction.
This report is preparatory to the issuance of an ALTA Loan Policy. We have no knowledge of any fact
which would preclude the issuance of the policy with CLTA endorsement forms 100 and 116 and if
applicable, 115 and 116.2 attached.
When issued, the CLTA endorsement form 116 or 116.2, if applicable will reference a(n) single family
residence known as 10346 SCENIC BOULEVARD, CUPERTINO, CA, 95014 -2770
2. General and special taxes and /or assessments for the fiscal year 2010 - 2011, as follows:
Assessor's Parcel No.: 357 -08 -037
111 Installment: $7,446.78 PAID
2nd Installment: $7,446.78 PAID
3. THE CURRENT VESTING WAS DERIVED FROM THE FOLLOWING DOCUMENT(S):
A DEED RECORDED 12/08/2000 AS INSTRUMENT NO. 15488672, OFFICIAL RECORDS
DATED: 10/27/2000
GRANTOR: CITY OF CUPERTINO
GRANTEE: DAVID KNAPP and KAY L. KNAPP, TRUSTEES OF THE 2000 KNAPP FAMILY TRUST
AND THE CITY OF CUPERTINO AS TENANTS IN COMMON
4. There are no conveyances affecting said land within two (2) years of the date of this
report, except the following:
None
CornerStona Title Company
Order Number: SAR -2493
Page Number: 6
i
('0101- A map showing the approximate location of the easements shown as exceptions herein
has been prepared and included as a courtesy by this company, and no liability for said
-Code— map is hereby being assumed.
i0,
Mal)
Color Coded Map
5. The map attached, if any, may or may not be a survey of the land depicted hereon.
Cornerstone Title Company, and its underwriters, expressly disclaims any liability for loss or damage
which may result from reliance on this map except to the extent coverage for such loss or damage is
expressly provided by the terms and provisions of the title insurance policy, if any, to which this map is
attached.
Cornerstone Title Company
Order Number: SAR -2493
Page Number: 7
LEGAL DESCRIPTION
Real property in the City of CUPERTINO, County of Santa Clara, State of CA, described as follows:
Lot 26, as shown on that certain Map entitled "Map of Monta Vista Park ", which Map was filed for
record in the Office of the Recorder of the County of Santa Clara, State of California, on April 11, 1917
in Book P of Maps at page(s) 19.
Excepting therefrom any portion of the land described in that Quitclaim Deed Recorded July 6, 1964 in
Book 6670, page 27, Official Records, Santa Clara County.
Also excepting therefrom the right to pump, take or otherwise extract water from the underground
basin or any underground strata as quitclaimed tc the City of Cupertino in the deed recorded in the
Office of the Santa Clara County Recorders office on March 22, 1989 in Book K886, page 522, Official
Records.
APN: 357 -08 -037
Cornerstone Title Company
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JCP -LGS Disclosures.com Report number :921098
P.O. Box 27849 Date : 03/18/2011
Santa Ana, CA 92799
JCP -LGS Disclosures.com
Natural Hazard Disclosures Order Invoice
DELIVER TO:
CORNERSTONE TITLE
20520 PROSPECT RD #300
SARATOGA, CA 95070
Attn: Escrow
Escrow Number: sar -2493
Officer: MELANIE LO
APN: 357 -08 -037
Subject Property:
10346 Scenic Blvd
Cupertino, CA, 95014
Date Product Name
03/18/2011 JCP -LGS Industry + CLUE Report
Total
$ 142.95
Please reference JCP -LGS Disclosures.com Report Number 921098 on the check
Demand is hereby made on the above referenced escrow for disclosure services. This demand is due and payable
upon the close of escrow. If for any reason escrow is transferred to another account, please fax the new
information to us at (800) 329 -9527. We will submit the invoice to the new escrow company. If for any reason this
escrow is canceled, please contact us immediately. We will forward the invoice to the responsible party.
NOTE: IF ESCROW HAS CLOSED AND REPORT FEES REMAIN OUTSTANDING, LIABILITY PROVISIONS DO NOT APPLY.
Please return bottom portion with your payment. Please do not staple check to stub
Received From:
CORNERSTONE TITLE
Escrow Number: sar -2493
357 -08 -037
10346 Scenic Blvd
Cupertino, CA 95014
Make check payable to:
JCP -LGS Reports Natural Hazard Disclosures
P.O. Box 27849
Santa Ana, CA 92799 AMOUNT DUE
If there are any billing questions, please
contact our customer service department at
(800) 748 -5233. Thank you.
Invoice 921098
$ 142.95
0921098142955
C.L.U.E.® Risk Only Report
Property Address: 10346 SCENIC BLVD, APN: 357 -08 -037
CUPERTINO, SANTA CLARA County, CA Report Date: 03118/2011
Report Number: 921098
The C.L.U.E.® Risk Only Report is specifically designed for use in the real estate disclosure process. This
report only lists losses reported by insurance companies that are associated with the property address
shown above and is a reflection of the C.L.U.E.0 database at the time and date of order.
SEARCH REQUEST: 10346 SCENIC BLVD,
CUPERTINO, CA 95014
NUMBER of CLAIMS REPORTED: 0
Claim Status — This indicates current loss claim status. If status indicates "Subrogation ", this means that an
insurance company has taken action to recover the amount of a loss paid if the loss was caused by a third
party.
NOTE: The loss information listed above may not be related to the seller because the loss may have
occurred before the seller acquired the property.
Prepared by: COMPREHENSIVE LOSS UNDERWRITING EXCHANGE ChoicePoint Inc., Atlanta, GA.
For additional information please contact:
ChoicePoint Consumer Center
P.O. Box 105108
Atlanta, Georgia 30348 -5108
Telephone: 1- 866 - 718 -7684
"C.L.U.E." is a registered trademark of ChoicePoint Asset Company.
JCP -LGS Residential Property Disclosure Reports
woicp disclosures.com The Natural Hazard Disclosure Report
For SANTA CLARA COUNTY
Property Address: 10346 SCENIC BLVD, APN: 357 -08 -037
CUPERTINO, SANTA CLARA COUNTY, CA 95014 Report Date: 03/18/2011
( "Property ") Report Number: 921098
Statutory Natural Hazard Disclosure Statement
The transferor and his or her agent(s) or a third -party consultant disclose the following information with the knowledge that even though this is not a warranty, prospective
transferees may rely on this information in deciding whether and on what terms to purchase the Property. Transferor hereby authorizes any agent(s) representing any principa](s) in
this action to provide a copy of this statement to any person or entity in connection with any actual or anticipated sale of the Property.
The following are representations made by the transferor and his or her agent(s) based on their knowledge and maps drawn by the State. This information is a
disclosure and is not intended to be part of any contract between the transferee and the transferor. THIS REAL PROPERTY LIES WITHIN THE FOLLOWING
HAZARDOUS AREA(S):
A SPECIAL FLOOD HAZARD AREA (Any type Zone "A" or "V ") designated by the Federal Emergency Management Agency.
Yes No X Do not know and information not available from local jurisdiction
AN AREA OF POTENTIAL FLOODING shown on a.dam failure inundation marl pursuant to Section 8589.5 of the Government Code.
Yes X No Do not know and information not available from local jurisdiction
A VERY HIGH FIRE HAZARD SEVERITY ZONE pursuant to Section 5117E or 51179 of the Government Code. The owner of this Property is subject to the
maintenance requirements of Section 51182 of the Government Code.
Yes No X
A WILDLAND AREA THAT MAY CONTAIN SUBSTANTIAL FOREST FIRE RISK AND HAZARDS pursuant to Section 4125 of the Public Resources Code. The
owner of this Property is subject to the maintenance requirements of Section 4291 of the Public Resources Code. Additionally, it is not the state's responsibility to
provide fire protection services to any building or structure located within the wildlands unless the Department of Forestry and Fire Protection has entered into a
cooperative agreement with a local agency for those purposes pursuant to Sect on 4142 of the Public Resources Code.
Yes No X
AN EARTHQUAKE FAULT ZONE pursuant to Section 2622 of the Public Rescurces Code.
Yes No X
A SEISMIC HAZARD ZONE pursuant to Section 2696 of the Public Resources Code
Yes (Landslide Zone) _Yes (Liquefaction Zone) _
No X Map not yet released by state _
THESE HAZARDS MAY LIMIT YOUR ABILITY TO DEVELOP THE REAL PROPERTY, TO OBTAIN INSURANCE, OR TO RECEIVE ASSISTANCE AFTER A
DISASTER. THE MAPS ON WHICH THESE DISCLOSURES ARE BASED ESTIMATE WHERE NATURAL HAZARDS EXIST. THEY ARE NOT DEFINITIVE
INDICATORS OF WHETHER OR NOT A PROPERTY WILL BE AFFECTED 13Y A NATURAL DISASTER. TRANSFEREE(S) AND TRANSFEROR(S) MAY WISH
TO OBTAIN PROFESSIONAL ADVICE REGARDING THOSE HAZARDS AND OTHER HAZARDS THAT MAY AFFECT THE PROPERTY.
Signature of Seller
Signature of Agent
Date Signature of Seller
Date
Date Signature of Agent Date
Check only one of the following:
Transferor(s) and their agent(s) represent that the information herein is true and correct to the best of their knowledge as of the date signed by the transferor(s)
and agent(s).
XJ Transferor(s) and their agent(s) acknowledge that they have exercised good faith in the selection of a third —party report provider as required in Civil Code
Section 1103.7, and that the representations made in this Natural Hazard Disclosure Statement are based upon information provided by the independent third —party
disclosure provider as a substituted disclosure pursuant to Civil Code Section 1103.4. Neither transferor(s) nor their agent(s) (1) has independently verified the
information contained in this statement and Report or (2) i personally aware of any errors or inaccuracies in the information contained on the statement. This
statement was prepared by the provider below:
Third —Party Disclosure Provider(s) j Date 03/1812011 Rept. No. 921098
Greg Rule, Chief Operating Officer
JCP -LGS Disclosure Repons
Transferee represents that he or she has read and understands this document, Pursuant to Civil Code Section 1103.8, the representations made in this Natural
Hazard Disclosure Statement do not constitute all of the transferor's or agent's disclosure obligations in this transaction.
Signature of Buyer
Date Signature of Buyer Date
ADDITIONAL SIGNATURE REQUIRED: SEE "ACKNOWLEDGEMENT OF RECEIPT " - NEXT PAGE
Pagel of 28
02011 — JCP -LGS Property Disclosure Reports - 200 Commerce Irvine, CA 9:2602 Phone: (800) 748 5233 Fax: (800) 329 9527
A* JCP
dlsclosures,00m ACKNOWLEDGEMENT OF RECEIPT
Aa
r
Property: 10346 SCENIC BLVD, APN: 357 -08 -037
CUPERTINO, SANTA CLARA COUNTY, CA 95014 Report Date: 03/18/2011
( "Property ") Report Number: 921098
I hereby acknowledge the receipt of the following Disclosures and Advisories:
Natural Hazard Report Disclosures and Advisories
(Signature Required on the Statutory Form — See preceding page)
✓ State Level Natural Hazard Disclosures (Statutory ✓ Methamphetamine Contaminated Property Disclosure
Form) Advisory
✓ Local City and County Level Natural Hazard ✓ Mold Advisory
Disclosures (where applicable)
✓ Commercial /Industrial Disclosure ✓ Radon Advisory
✓ Military Ordnance Disclosure
✓ Airport Influence Area /Airport Noise Disclosure
✓ Database Disclosure (Megan's Law)
✓ San Francisco Bay Conservation and Development
Commission Disclosure (where applicable)
✓ California Energy Efficiency Disclosure
✓ Endangered Species Act Advisory
✓ Abandoned Mines Advisory
• Oil & Gas Well Advisory
• Tsunami Map Advisory
✓ Right to Farm Disclosure
California Property Tax Report Disclosures and Adviisories
• Notice of Special Tax and Assessment (Mello -Roos and 1915 Bond Act)
• Notice of Supplemental Property Tax Bill
✓ Private Transfer Fee Disclosure Advisory
Environmental Report Disclosures and Advisories
✓ Notification of known contaminated sites in proximity to the property
Transferor (Seller) Date
Transferor (Seller) Date
Transferee (Buyer)
Date
Transferee (Buyer)
Date
Agent
Date
Agent
Date
Page 2 of 28
02011 — JCP -LGS Property Disclosure Reports - 200 Commerce Irvine, CA 92E 02 Phone: (800) 748 5233 Fax: (800) 329 9527
31966
Date of Notice: June 24, 2011
Assessor's Parcel Number (APN): 357 -08 -037
Situs: 10346 SCENIC BLVD, CUPERTINO CA
PIN: C4379279
Assessed Value as of January 1, 2011
Land:
844,400
"Improvements:
409,018
•
Total:
1,253,418
0 •
Home-Dwner Exemption:
7,000
•scar, OR code above
from your mobile device
1,246,418
o b om hiTotal:
NNa f e
Assessor's web she.
The Assessed Value as of January 1, 2011 shown above is the factored base year value.
"The Assessor reviewed the value of this property and determined that the factored base year value is less than the market value
as of January 1, 2011. Your property has been assessed at the lower value. The market data used to make this determination
can be reviewed by going to the Assessor's website located at httn ;,'1ip.sccassessor.oralcornps. The PIN number shown above
will be needed to access the market data. If, after reviewing the market data, you believe the market value as of January 1 was
less than the amount shown above you may request an informal assessment review online at http : / /rp.sccassessor.orct/prop8 or
via one of the contact methods listed below. The Assessor will accept requests for informal reviews through August 1 and will
complete as many reviews as possible through August 15. A notification will be sent after August 15 with either the results of the
review or the information that the review was not completed due to insufficient time. If you disagree with the results of the
informal review, or if you do not hear from the Assessor, your administrative remedy is to file a formal Application for Changed
Assessment as described below. Please note that an Application for Changed Assessment must be filed between July 2 and
September 15.
If a value reduction is appropriate, as determined by the Assessor prior to August 15, 2011, the value can be changed. After
August 15, or if the Assessor does not agree to a reduction or has riot completed your informal review, you must file a "formal"
Application for Changed Assessment appeal with the independent Assessment Appeals Board to request relief. This application
requires a filing fee and must be filed between July 2 and September 15, 2011 with the Clerk of the Board, County Government
Center, 70 West Hedding Street, East Wing, Tenth Floor, San Jost), CA 95110. Applications may be obtained by calling the
Clerk at (408) 299 -5088 or going to http: / /www.sccgov ora /portal /site /cob. The Clerk will send a notice of the scheduled hearing
date. Please do not contact the Assessor's Office regarding the appeal prior to receiving notice of your hearing date. Your
appearance at the hearing may be waived by the Assessment Appeals Board if a written stipulation of value is presented and
signed by the Assessor, the County Legal Officer, and you or your accent.
THE DEADLINE TO APPEAL YOUR ASSESSED VALUE IS SEPTEMBER 15T". DO NOT WAIT FOR YOUR TAX BILL, AS
YOU MAY MISS THE APPEAL FILING DEADLINE.
The base year value is established, pursuant to State law (Proposition 13), which requires that all real property be assessed
upon change in ownership or new construction. A new base year appraisal at market value for ownership change or for
completed construction will cause a separate supplemental assessment and a separate supplemental tax bill(s) to be issued.
Partially completed construction will be reappraised on the January 1 lien date. Furthermore, an inflation factor, not to exceed
2 90, will be added annually to the base year value to determine the factored base year value.
A temporary reduction (Proposition 8) can be given when the current market value as of January 1, 2011, is less than the
property's factored base year value. The reduced value will be reviewed annually until the property's factored base year value is
fully restored. The value may be partially increased or fully restored in any given year, depending upon market conditions.
Partial increases or full restoration may result in an increase greater than 2% for that year.
'The value shown on this card plus any taxable property placed on the roll as a result of a business property assessment minus
any exemption for which you qualify will be the basis of your property tax bill. In addition, other direct assessments may be
added to the bill by other public agencies. If you believe you are eligible for a homeowner's exemption, contact the Exemption
Division at (408) 299 -6460 or Exemptions @asr.sccgov.oi
Please refer to your property's Assessor's parcel number when contacting us via the following:
rpOasr.sccgov.org (408) 299 -5300 FAX (408) 299 -3015 www,sccassessor.org
"Improvements are broadly defined as improvements to the land and include structures erected on and attached to the land
regardless of when the structure was added.
1.FBYV CAMA Review
Lawrence E. Stone
Santa Clara County - Assessor
County Government Center
70 West Hedding Street, East Wing 5" Floor
San Jose, CA 95110 -1771
www.sccassessor.org
RETURN SERVICE REQUESTED
2011 -2012 NOTIFICATION OF ASSESSED VALUE
FINAL NOTICE BEFORE APPEAL FILING DEADLINE OF SEPTEMBER 15, 2011
11.1...1.1.11......11.1..1..11. ..1.1.1.1..1.1.11...11....11..1
* * * * * * * * * * * * * * * * * * * *SCH 5 -DIGIT 95014
CUPERTINO CITY OF
KNAPP DAVID AND KAY L TRUSTEE
C/O GENERAL SERVICES DIRECTOR
10300 TORRE AVE
CUPERTINO CA 95014 -3255
183160-RP/003/103/001/031966
Would you like to get your assessment
notice electronically next year?
FIRST -CLASS MAIL
PRESORTED
U.S. POSTAGE PAID
SAN JOSE, CA
PERMIT NO. 1406
The Assessor's Office is in the process of creating an "E -mail Opt -
in" service on its website. It will allow property owners to choose
to receive notifications of important assessment information by
electronic mail.
** IMPORTANT: SAVE THIS NOTICE **
YOU WILL NEED INFORMATION CONTAINED IN THIS NOTICE TO
PARTICIPATE
CORNEKSTONE
s I S 1. 1', C 0 1l'1 V A
City of Cupertino
Attn: Gilbert Wong
10300 Torre Ave
Cupertino, CA 95014
Re: 10346 Scenic Boulevard, Cupertino CA 95014
Dear Valued Customer:
The above referenced transaction was recorded on June 30, 2011.
Enclosed please find the following for your records:
(Keep these instruments in a safe place as some of them cannotbe replaced.)
Final HUD -I and Closing Statement
Cornerstone Title Company
20520 Prospect Road,Suite 300
Saratoga, CA 95070
Phone: (408) 446 -4435
Fax: (408) 446 -4452
June 29, 2011
File No.: SAR -2493 ( ML )
IF YOU RECEIVE A TAX BILL FOR GENERAL AND SPECIAL PROPERTY TAXES FROM THE COUNTY TAX
COLLECTOR, PLEASE SEND THE TAX BILL DIRECTLY TO THE BUYER AT:
Lakshman N. Yagati and Anuradha Yagatti
3364 Kenneth Drive, Palo Alto, CA 94303
IF YOU RECEIVE A TAX BILL FOR SUPPLEMENTAL OR ESCAPED TAXES, IT IS YOUR RESPONSIBILITY TO
PAY THIS BILL.
Should you have any questions or need further assistance, please contact the undersigned. If checks
are included in this package, please negotiate as soon as possible.
Sincerely,
Melanie Lo
Escrow Officer
Melanie.Lo @CSTitleCo.com
(ML)
Page 1 of 1
SAR -2493 As of 6/30/2011 3:14:10 PM Page'
Cornerstone Title Company
CORNERSTONE 20520 Prospect Roa35
duite 300 Saratoga CA 95070
a �4 Fax: (408) 446 -4452 SAR - 2493 -ML
Escrow Officer: Melanie Lo
Seller's Final Settlement Statement
Property: 10346 Scenic Boulevard
Cupertino, CA 95014
Closed Date: 6/30/2011
Seller: David Knapp, Trustee and Kay L. Knapp, Trustee of The 2000 Knapp Family Trust Escrow Number: SAR- 2493 -ML
City of Cupertino
Debits
Credits
Purchase Price
Contract Sales Price
$1,440,000.00
Receipts
Seller Paid Closing Costs - Escrow Fee
$1,600.00
Seller Paid Closing Costs - Owner's Title Policy
$2,845.00
Seller Paid Closing Costs - County Transfer Tax
$1,584.00
Payoff
Principal to City of Cupertino
$220,038.90
Sales Commission
Listing Commission to COLDWELL BANKER
$36,000.00
Selling Commission to Alain Pinel Realtors
$36,000.00
Prorations
County Taxes (Paid) 7,446.78/6 mos 6/30/2011 to 7/1/2011
$41.37
Recording Fees
Substitution of Trustee (Recording)
$42.00
Additional Settlement Fees
Natural Hazard Disclosure to JCP -LGS Reports Natural Hazard
$142.95
Disclosures
Sales proceeds to City of Cupertino
$1,055,448.80
Sales Proceeds to The 2000 Knapp Family Trust
$86,339.72
Balance Due
$0.00
Totals:
$1,440,
$1,440,
Save this Statement for Income Tax purposes.
* A. Settlement Statement (HUD -1)
OMB Approval No. 2502 -0265
HUD -1
Page 1 of 2
B. Type of Loan
1. F-1 FHA 2. ❑ RHS 3. X❑ Conv. Unins.
4. ❑ VA 5.E] Conv. Ins.
6. File Number:
SAR -2493
7. Loan Number:
503230572
8. Mortgage Insurance Case Number:
C. NOTE: This form is furnished to give you a statement of actual settlement costs. Amounts paid to and by the settlement agent are shown.
Items marked "(p.o.c.)" were paid outside the closing; they are shown here for informational purposes and are not included in the
totals.
D. Name and Address of Borrower
LAKSHMAN N. YAGATI AND ANURADHA
YAGATI
3364 KENNETH DRIVE
PALO ALTO, CA 94303
E. Name and Address of Seller
DAVID KNAPP, TRUSTEE AND KAY L. KNAPP,
TRUSTEE OF THE 2000 KNAPP FAMILY
TRUST
10346 SCENIC BOULEVARD
CUPERTINO, CA 95014 -2770
CITY OF CUPERTINO
10346 SCENIC BOULEVARD
CUPERTINO, CA 95014 -2770
F. Name and Address of Lender
FLAGSTAR BANK, FSB
5151 CORPORATE DRIVE,
TROY, MI 48098
G. Property Location
10346 SCENIC BOULEVARD,
CUPERTINO, CA 95014 -2770 FINAL
PARCEL ID: 357 -08 -037
H. Settlement Agent
CORNERSTONE TITLE COMPANY
20520 PROSPECT ROAD,SUITE 300,
Phone : (408) 446 -4435
Phone : (40) 46-44
Place of Settlement
20520 PROSPECT ROAD,SUITE 300,
SARATOGA, CA 95070
I. Settlement Date 06/30/2011
Disbursement Date 06/30/2011
1412.
K. Summary of Seller's Transaction
J. Summary of Borrower's Transaction
100. Gross Amount Due from Borrower
400. Gross Amount Due to Seller
101. Contract Sales Price
401. Contract Sales Price
$1,440,000.00
102. Personal Property
402. Personal Property
103. Settlement charges to borrower line 1400
0.00
403.
104.
404.
105.
405. Deposit for/by Seller
Adjustment for items paid by seller in advance
Adjustment for items paid by seller in advance
106. City Taxes Paid
406. City Taxes Paid
107. County Taxes (Paid)
County Taxes (Paid) 7,446.78/6 mos 6/30/2011
407' to 7/1/2011
$ 4 1.37
108. Assessments Paid
109.
408. Assessments Paid
110.
409.
111.
410.
112.
411.
120. Gross Amount Due from Borrower
420. Gross Amount Due to Seller
L1,440,041.37
200. Amounts Paid by or in Behalf of Borrower
500. Reductions In Amount Due to Seller
201. Deposit or earnest money
501.
202. Principal Loan Amount
502. Settlement Charges to Seller
$1,213,973.47
203. Existing loans taken subject to
503. Existing loans taken subject to
204.
504. Principal to City of Cupertino
$220,038.90
205.
505.
206.
506. Seller Paid Closing Costs - Escrow Fee
$1,600.00
207
507. Seller Paid Closing Costs - Owner's Title Policy
$2,845.00
208
508. Seller Paid Closing Costs - County Transfer Tax
$1,584.00
209.
509.
Adjustments for items unpaid by seller
Adjustments for items unpaid by seller
210. City Taxes (Unpaid)
510. City Taxes (Unpaid)
211. County Taxes (Unpaid)
511. County Taxes (Unpaid)
212. Assessments (Unpaid)
512. Assessments (Unpaid)
213.
513.
214.
514.
215.
515.
216.
516.
217.
517.
218.
518.
219.
519.
220. Total Paid by/for Borrower
0.00
520. Total Reduction Amount Due Seller
llt440,041.37
znn raah at CPttlnmPnt from /to Borrower
600. Cash at Settlement to /from Seller
SAR -2493 HUD -1 Page 2 of 2
L. Settlement Charges
700. Total Real Estate Broker Fees $72000.00
Paid From
Borrower's Funds
At Settlement
Paid From
Seller's Funds
At Settlement
Division of Commission line 700 as follows:
701. $36000.00 to COLDWELL BANKER
702. $36000.00 to Alain Pinel Realtors
703. Commission paid at settlement
$72,000.00
704.
800. Items Payable in Connection with Loan
801. Our origination charge from GFE #1
802. Your credit or charge (points) for the specific interest rate chosen from GFE #2
803. Your adjusted origination charges from GFE A
804. Appraisal Fee to QC Financial Co. POC P 400.00 from GFE #3
805. Credit report to CCI POC P 25.00 from GFE #3
806. Tax Service from GFE #3
807. Flood Cert. Fee from GFE #3
808.
900. Items Required by Lender to Be Paid in Advance
901. Daily interest charges from GFE #10
902. Mortgage Insurance Premium from GFE #3
903. Homeowner's Insurance from GFE #11
904.
100O.Reserves Deposited with Lender
1001. Initial deposit for your escrow account from GFE #9
1002.
1003.
1004.
1005.
1006.
1007.
11OO.Title Charges
1101.Title services and lender's title insurance from GFE #4
1102. Settlement or closing fee to Cornerstone Title Company
1103. Owner's title insurance from GFE #5
1104. Lender's title insurance
1105. Lender's title policy limit $590,000.00
1106. Owner's title policy limit $1,440,000.00
1107. Agent's portion of the total title insurance premium $3,166.24
1108. Underwriter's portion of the total title insurance premium to Title Resources $431.76
Guaranty Company
1120O.Government Recording and Transfer Charges
1201. Government recording charges from GFE #7
1202. Deed Mortgage Releases $42.00
42.00
1203. Transfer taxes from GFE #8
1204. City/County tax/stamps Deed Mortgage
1205. State tax/stamps Deed Mortgage
1206.
13OO.Additional Settlement Charges
1301. Required services that you can shop for from GFE #6
1302. Natural Hazard Disclosure to JCP -LGS Reports Natural Hazard Disclosures
1303. Sales proceeds to City of Cupertino
1304. Sales Proceeds to The 2000 Knapp Family Trust
$142.95
$1,055,448.80
$86,339.72
1305.
14O0.Total Settlement Charges (enter on lines 103, Section 3 and 502, Section K)
$0.00
$1,213,973.47
SAR -2493 As of 6/27/20112:11:18 PM
Page 1
Cornerstone Title Company
CORNERSTONE 20520 Prospect Road,Suite 300 Saratoga CA 95070
_. ..w.._,___. _ _..,r Phone: (408) 446 -4435
Escrow 444 SAR- 2493 L
O6- Melanie Lo Ail
Seller's Estimated Settlement Statement
Property: 10346 Scenic Boulevard
Closed Date:
Cupertino, CA 95014
Est. Closing Date:
6/30/2011
Seller: David Knapp, Trustee and Kay L. Knapp, Trustee of The 2000 Knapp Family Trust Escrow Number:
SAR- 2493 -ML
City of Cupertino
Debits
Credits
Purchase Price
Contract Sales Price
$1,440,000.00
Payoff
Principal to City of Cupertino
$198,847.90
Interest from 6/24/2011 thru 6/30/2011 @ 17.6201 /day to City of
$123.34
Cupertino
Other Payoff Fee to City of Cupertino
$21,067.66
Sales Commission
Listing Commission to COLDWELL BANKER
$36,000.00
Selling Commission to Alain Pinel Realtors
$36,000.00
Prorations
County Taxes (Paid) 7,446.78/6 mos 6/30/2011 to 7/1/2011
$41.37
Escrow Fees
Escrow Fee
$1,600.00
Owner's Coverage to Cornerstone Title Company
$2,845.00
Recording Fees
Documentary Transfer Tax - County
$1,584.00
Additional Settlement Fees
Natural Hazard Disclosure to JCP -LGS Reports Natural Hazard
$142.95
Disclosures
Sales proceeds to City of Cupertino
$1,055,448.80
Sales Proceeds to The 2000 Knapp Family Trust
$86,381.72
Balance Due
$0.00
Totals: $1,440,041.37
$1,440,041.37
This is an estimated closing statement and is s
The 2000 Knapp Family Trust
By: David Knapp, Trustee
By: Kay L. Knapp, Trustee
City of Cupertino
By: Gilbert Wong, Mayor
act to changes, corrections or additions at the time of final
closing.
A. Settlement Statement (HUD -1)
OMB Approval No. 2502 -0265
HUD -1
Page 1 of 2
B. Type of Loan
1. ❑ FHA 2. ❑ RHS 3. ❑ Conv. Unins.
4. ❑ VA 5.E] Conv. Ins.
6. File Number:
SAR -2493
7. Loan Number:
8. Mortgage Insurance Case Number:
C. NOTE: This form is furnished to give you a statement of actual settlement costs. Amounts paid to and by the settlement agent are shown.
Items marked "(p.o.c.)" were paid outside the closing; they are shown here for informational purposes and are not included in the
totals.
D. Name and Address of Borrower
LAKSHMAN YAGATI AND ANURADHA YAGATI
CA
E. Name and Address of Seller
DAVID KNAPP, TRUSTEE AN[) KAY L. KNAPP,
TRUSTEE OF THE 2000 KNAPP FAMILY
TRUST
CA
CITY OF CUPERTINO
CA
F. Name and Address of Lender
G. Property Location
10346 SCENIC BOULEVARD,
CUPERTINO, CA 95014 -2770
PARCEL ID: 357 -08 -037
H. Settlement Agent
CORNERSTONE TITLE COMPANY
20520 PROSPECT ROAD,SUITE 300,
SaRATOGA, CA 95070
Phone : (408) 446 -4435
Place of Settlement
20520 PROSPECT ROAD,SUITE 300,
SARATOGA, CA 95070
I. Settlement Date 06/30/2011
Disbursement Date 06/30/2011
J. Summary of Borrower's Transaction
x600.
K. Summary of Seller's Transaction
100. Gross Amount Due from Borrower
400. Gross Amount Due to Seller
101. Contract Sales Price
401. Contract Sales Price
$1,440,000.00
102. Personal Property
402. Personal Property
103. Settlement charges to borrower line 1400
0.00
403.
104.
404.
105.
405. Deposit for/by Seller
Adjustment for items paid by seller in advance
Adjustment for items paid by seller in advance
106. City Taxes Paid
406. City Taxes Paid
107. County Taxes Paid
407 County Taxes (Paid) 7,446.78/6 mos 6/30/2011
to 7/1/2011
$41.37
108. Assessments Paid
109.
408. Assessments Paid
110.
409.
111.
410.
112.
411.
120. Gross Amount Due from Borrower
$0.00
412.
420. Gross Amount Due to Seller
$1,440,041.37
200. Amounts Paid by or in Behalf of Borrower
500. Reductions In Amount Due to Seller
201. Deposit or earnest money
501.
202. Principal Loan Amount
502. Settlement Charges to Seller
$1,220,002.47
203. Existing loans taken subject to
503. Existing loans taken subject to
204.
504. Principal to City of Cupertino
$220,038.90
205.
505.
206.
506.
207.
507.
208.
508.
209.
509.
Adjustments for items unpaid by seller
Adjustments for items unpaid by seller
210. City Taxes (Unpaid)
510. City Taxes (Unpaid)
211. County Taxes (Unpaid)
511. County Taxes (Unpaid)
212. Assessments (Unpaid)
512. Assessments (Unpaid)
213.
513.
214.
514.
215.
515.
216.
516.
217.
517.
218.
518.
219.
519.
220. Total Paid by/for Borrower
$0.001
520. Total Reduction Amount Due Seller 1$1,440,041.37
300. Cash at Settlement from /to Borrower 1
Cash at Settlement to /from Seller
CAR -2493 HUD -1 Page 2 of 2
L Settlement Charges
700. Total Real Estate Broker Fees $72000.00
Paid From
Borrower's Funds
At Settlement
Paid From
Seller's Funds
At Settlement
Division of Commission line 700 as follows:
701. $36000.00 to COLDWELL BANKER
702. $36000.00 to Alain Pinel Realtors
703. Commission paid at settlement
$72,000.00
704.
800. Items Payable in Connection with Loan
801. Our origination charge from GFE #1
802. Your credit or charge (points) for the specific interest rate chosen from GFE #2
803. Your adjusted origination charges from GFE A
804. Appraisal Fee from GFE #3
805. Credit report from GFE #3
806. Tax Service from GFE #3
807. Flood Cert. Fee from GFE #3
808.
900. Items Required by Lender to Be Paid in Advance
901. Daily interest charges from GFE #10
902. Mortgage Insurance Premium from GFE #3
903. Homeowner's Insurance from GFE #11
904.
1OOO.Reserves Deposited with Lender
1001. Initial deposit for your escrow account from GFE #9
1002.
1003.
1004.
1005.
1006.
1007.
11OO.Title Charges
1101.Title services and lender's title insurance to Cornerstone Title Com amr from GFE #4
1102. Settlement or closing fee to Cornerstone Title Company
1 600.00
1103. Owner's title insurance to Cornerstone Title Company from GFE #5
$2,845.00
1104. Lender's title insurance
1105. Lender's title policy limit $0.00
1106. Owner's title policy limit $1,440,000.00
1107. Agent's portion of the total title insurance premium to Cornerstone Title $2,503.60
Company
1108. Underwriter's portion of the total title insurance premium to Title Resources $341.40
Guaranty Company
12OO.Government Recording and Transfer Charges
1201. Government recording charges from GFE #7
1202. Deed Mortgage Releases
1203. Transfer taxes from GFE #8
1204. City/County tax/stamps Deed $1584.00 Mortgage
$1,584.00
1205. State tax/stamps Deed Mortgage
1206.
13OO.Additional Settlement Charges
1301. Required services that you can shop for from GFE #6
1302. Natural Hazard Disclosure to JCP -LGS Reports Natural Hazard DISCIOSLreS
$142.95
1303. Sales proceeds to City of Cupertino
$1,055,448.80
1304. Sales Proceeds to The 2000 Knapp Family Trust
$86,381.72
1305.
14OO.Total Settlement Charges (enter on lines 103, Section 3 and 502, Section K)
$0.001
$1,220,002.47
If you have any questions about the settlement charges and loan terms listed on this form, please contact your lender. Settlement agent is not responsible for content of
lender's assessments on HUD.
The seller's and borrower's signatures hereon acknowledge their approval and signify their understanding that tax and insurance prorations and reserves are based on
figures for the preceding year or supplied by others or estimated for the current year, and in the event of any change for the current year, all necessary adjustments will be
made between borrower and seller directly. Any deficit delinquent taxes or mortgage payoffs will be promptly reimbursed to the settlement agent by the seller.
I have carefully reviewed the HUD -1 Settlement Statement and to the best of my knowledge and belief, it is true and accurate statement of all receipts and disbursements
made on my account or by me in this transaction. I further certify that I have received a copy of the HUD -1 Settlement Statement.
BUYERS
SELLERS
The 2000 Knapp Family Trust
Lakshman Yagati
13y: David Knapp, Trustee
Anuradha Yagati
13y: Kay L. Knapp, Trustee
RESOLUTION NO. 00-261
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CUPERTINO
AUTHORIZING EXECUTION OF AGREEMENT FOR HOUSING
ASSISTANCE, PURCHASE OF EQUITY INTEREST IN HOUSE AND LOT
LOCATED AT 10346 SCENIC BOULEVARD BY DAVID KNAPP, CITY
MANAGER
WHEREAS, there has been presented to the City Council an Agreement for
Housing Assistance between the City of Cupertino an David Knapp for purchase of an
equity interest in the house and lot located at 10346 Scenic Boulevard; and
WHEREAS, the terms, conditions and provisions of the agreement have been
reviewed and approved by the City Attorney.
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of
Cupertino hereby approves the aforementioned agreement and authorizes the Mayor to
execute said agreement on behalf of the City of Cupertino.
PASSED AND ADOPTED at a regular meeting of the City Council of the City of
Cupertino this 16`h day of October 2000, by the following vote:
Vote Members of the City Council
AYES:
Burnett, Chang, James, Lowenthal, Statton
NOES:
None
ABSENT:
None
ABSTAIN:
None
ATTEST: APPROVED:
/s/Kimberly Smith Is /John Statton
City Clerk Mayor, City of Cupertino
AGREEMENT FOR HOUSING ASSISTANCE
THIS AGREEMENT is executed this /� day of
Oe;- v,k &, 1r 2000, by and between the CITY OF CUPERTINO, a
municipal corporation, hereinafter referred to as "CITY' and DAVID KNAPP
who has been employed as City Manager by CITY, hereinafter referred to as
" KNAPP."
RECITALS
WHEREAS, CITY has retained KNAPP as its City Manager, the chief
administrative position in CITY, after an extensive search for the most
qualified candidate; and
WHEREAS, CITY requires its City Manager to reside within the City
limits; and
WHEREAS, CITY and KNAPP have met and discussed compensation
and realize that due to extremely high costs of housing within Cupertino,
CITY must assist KNAPP in obtaining suitable housing within Cupertino; and
WHEREAS, KNAPP contemplates the purchase of an equity interest in
the house and lot located at 10346 Scenic Blvd., Cupertino, California,
{hereinafter referred to as "the residence ", and the CITY'S former City
Manager DONALD BROWN; and
WHEREAS, The CITY may elect to purchase DONALD BROWN'S
interest in the residence at a price based upon current market value (hereinafter
referred to as "the market value "). In order to determine the market value of
PC /DIR/K/KA 9 -11 -00 1
the residence, the CITY has ordered the preparation of a written appraisal
performed by a qualified appraiser.
NOW, THEREFORE, IT IS AGREED as follows:
1. Purpose. The purpose of this Agreement is to set forth those
understandings reached by CITY and KNAPP regarding housing assistance. It
is understood that subsequent to the execution of the Agreement, KNAPP must
execute further documents and KAY L. KNAPP, his wife, will execute the
same documents with respect to the purchase of equity interest in the
residence.
2. Terms of Employment. This Agreement addresses only one
segment of KNAPP'S terms and conditions of employment. It is understood
that CITY and KNAPP may agree to such other terms as are consistent with
the municipal code and California law.
Further, it is expressly agreed that nothing contained herein shall be
construed to provide KNAPP a contract of employment as City Manager.
CITY, through its City Council, continues to maintain its sole authority to
retain or dismiss its City Manager from employment. The exercise of such
authority by CITY shall not establish in KNAPP a cause of action for money
damages due to a loss of the housing assistance provided herein. Nothing
herein is intended to create any obligation to provide housing assistance for
any person or persons except KNAPP himself.
3. City Loan for Purchase of Equity Interest. KNAPP may obtain,
upon request, a loan from the CITY not to exceed $300,000 to be used for the
purchase of an equity share in the residence. Said loan is to be evidenced by a
promissory note in favor of the CITY secured by a first deed of trust
encumbering the residence. Said promissory note shall contain the terms of
repayment which are consistent with the terms specified for Department Heads
PC/DIR/K/KA 9 -11 -00 2
described in City Council Resolution 99 -070. KNAPP may prepay at any time
all, or a portion, of this loan without penalty. KNAPP shall authorize CITY to
make an automatic payroll deduction to cover payments with respect to the
CITY'S loan. Such payroll deduction shall have priority over all other
deductions except those required by law. The CITY shall provide KNAPP a
year -end statement showing the amount allocated paid to principal and the
amount paid as interest. Notwithstanding any provision to the contrary, the
note shall become immediately due and payable upon sale or transfer of the
residence or upon cessation of it as KNAPP'S primary residence. Said loan is
only available to KNAPP as part of an equity interest purchase, whereby he
invests a minimum of $50,000 of his own funds in the residence.
4. Equity Share Title. Title to the residence shall be held by CITY and
KNAPP as tenants in common.
5. Allocation of costs with respect to the residence:
A) KNAPP shall be responsible for taping out and maintaining, at
his sole cost, fire, casualty, and liability insurance on the residence with
coverage and terms, and in an amount, which are satisfactory to CITY and
naming the CITY, and its officers, agents, and employees, as additional
insureds thereunder, and as beneficiaries in proportion to the CITY'S equity
interest. The City and the Manager shall share earthquake insurance premium
in same proportion as their investments.
B) KNAPP shall be responsible for making all necessary repairs to
the residence, provided, however, that with respect to any specific repair
whose cost is greater than $3,500, the parties shall share the cost of said repair
in proportion to their respective equity interests at the time said repairs are
made. Prior to commencing any work of repair costing more than $3,500,
PCIDIWKIKA 9 -11 -00 3
KNAPP shall confer with Mayor and City Attorney and obtain CITY'S
agreement as to said repair.
C) The parties shall share real property taxes and assessments on
the same basis as their respective interests in the property.
6. Sale of the Residence.
A) The parties may sell the residence at any time based upon a
price which is mutually agreed upon by the parties.
B) At the time of sale, the balance of loan made by CITY to
KNAPP pursuant to paragraph 3 shall be fully paid.
C) Upon said sale, the parties shall receive the amount of
proceeds, after said loan above described and all costs of sale are paid, as
follows:
a) KNAPP shall receive a percentage of the balance based
upon the ratio that his original contribution (including cash and loan)
described in paragraph 3 of this Agreement bears to the total market value of
the residence. As used in this Agreement, the phrase "total market value of the
residence" means 1.4 million dollars, based upon recent appraisals.
b) CITY shall receive the remaining percentage of said
balance.
7. Adjustments of Equity Between the Parties.
A) At any time or times during the period KNAPP resides at the
residence, he may purchase all, or a portion of CITY'S interest in the
residence. The price shall be established as provided herein.
B) Unless the parties otherwise agree as to the price, each party
shall appoint an appraiser, and their decisions shall be averaged and shall be
final, unless they shall differ by 5% or more in value, in which case a third
appraiser shall be selected by the other two appraisers, unless CITY and
PC /DIWK /KA 9- 11-00 4
KNAPP jointly select such third appraiser. Said third appraiser shall appraise
the residence, and his appraisal shall be averaged with the closest other
appraisal. The amount so averaged shall be final. Costs of all appraisals shall
be split equally between the parties.
C) KNAPP shall pay CITY that portion of CITY'S interest he
wishes to purchase based upon the formula'for sale of residence contained in
section 5 of this Agreement and CITY shall execute the necessary documents
evidencing such transfer.
8. Termination of Agreement.
A) KNAPP acknowledges and agrees that this housing assistance
agreement is not assumable by any subsequent buyer or transferree of the
residence in that it was specifically negotiated as part of the City Manager's
employment agreement, that the payroll deductions provisions act as security
to the benefit of the CITY, and that the general aspects of the City
Manager /City Council relationship indicate that the assistance is fashioned for
KNAPP alone.
B) It is further agreed that upon termination of KNAPP's
employment, or upon his failure to utilize the residence as his primary
residence, or upon his death, the balance of CITY'S loan shall become due and
payable within 24 months; provided that KNAPP's employment extends for at
least 5 years; otherwise, said loan will be due and payable within 12 months of
termination.
C) In the event of KNAPP's death, his executor or administrator
shall be granted the option of purchasing CITY'S interest in the residence
within 24 months of death. Upon occurrence of any other event described in
paragraph 8B above, KNAPP shall be granted said option to purchase but only
for a period of 24 months from the date of the occurrence; provided that
PC /D1R/K/KA 9 -11.00 5
KNAPP's employment extends for at least 5 years; otherwise said option
extends for only 12 months from termination. During said option periods
above described, KNAPP or his executor or administrator, as the case may be
shall continue to make all payments with respect to the residence that KNAPP
-would otherwise be required to make regardless of whether any option
described herein is actually exercised.
D) In the event that KNAPP or his executor or administrator does
not exercise his option to purchase the residence hereunder, CITY shall have
the option to purchase KNAPP'S interest in the residence within one hundred
eighty (180) days thereafter.
E) Any option described above shall be for the purchase of the
residence at a price established under paragraph 7B and with respect to the
allocation formula described in paragraph 6.
F) If neither party exercises any of the options described herein,
then the property shall be sold in the open market at a price determined under
paragraph 7 B and with respect to the allocation formula described in
paragraph 6.
G) Neither KNAPP nor his executor or administrator shall sell,
lease, rent, or encumber the residence in any way without the written consent
of CITY in advance.
9. Binding Effect. This Agreement binds the parties, their successors,
and personal representatives, and is not assignable by either party without the
express written consent of the other party.
10. Invalidity. In the event this Agreement or any part thereof should
be held invalid, CITY and KNAPP agree to discuss alternatives within the
CITY'S discretion; however, KNAPP has no vested right to alternative
compensation.
PC /DIR/K/KA 9 -11 -00 6
11. Spousal Agreeme nt. This Agreement shall become effective only
upon the consent and agreement thereto by KAY L. KNAPP, and shall become
null and void if she shall refuse to execute any or all other documents deemed
necessary by CITY to initially consummate this transaction in its entirety.
KAY L. KNAPP also agrees to execute all documents necessary to carry out
this Agreements at all times during its term.
12. Authorit . The Mayor is hereby authorized and directed to execute
all documents necessary to carry out this Agreement.
Dated:
1 ,
DAVID KNAPP
I agree and consent to
each of the provisions
of this Agreement.
PC /DIRIK/KA 9 -1I -00 7
CITY OF CUPERTINO
Statton, Mayor
Attest:
City Clerk
APPROVED AS TO FORM:
H . KILIAN