RecDoc 95-056550 - Laserfiche WebLink

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4. LEASING OF PROPERTY The Owner shall not lease the Unit. Any lease in violation of this Resale Agreement is prohibited. In the event the Owner fails to comply with this Section 4 or with Section 3 regarding leasing the Unit, City may, at its sole option, declare a default under this Agreement. In addition, Owner shall be liable to City for the difference between the rent being charged for the Unit and the allowable rent had the Unit been rented to a person of very low income whose income did not exceed 50% of the median income in San Mateo County for a family of one. 5. SALE RESTRICTIONS Any Transfer of the Unit will be subject to the provisions of this Resale Agreement, and the Promissory Note and Grant Deed. Any Transfer not in compliance with all provisions of this Resale Agreement, the Promissory Note or with the provisions of any Resale Agreement entered into in connection with the purchase of the Unit is prohibited. The provisions of this Resale Agreement, however, shall continue to be in full force and effect. 6. NOTICE OF INTENDED TRANSFER In the event that the Owner intends to Transfer or vacate the Unit, the Owner shall promptly notify the City in writing of such intent at least ninety (90) days prior to the actual date of the Transfer or vacation of the Unit. The Notice of Intended Transfer from the Owner shall be delivered in the manner set forth in Section 22 of this Resale Agreement. Following receipt of such notice, City in its discretion, may either notify prospective Eligible Purchasers of the Unit that the Unit is available for sale, or City may exercise its option to purchase the Unit, as described in Section 7 below. 7. CITY PURCHASE OPTION The Owner agrees that the City shall and does hereby have the option to purchase the Unit on the terms and in the manner set forth in this Resale Agreement. If City decides to exercise the option to purchase the Unit it shall, within forty-five (45) days of receipt of the Notice of Intended Transfer specified in Section 6 above, notify the Owner that it chooses to exercise the option. The notice to the Owner shall be sent in the manner set forth in Section 22 of this Resale Agreement. The Owner agrees that City, in its sole discretion, may choose to record the option to purchase. If City fails to exercise its option to purchase, such waiver shall be valid for a one year period from the date of delivery of the Notice of Intended Transfer to City pursuant to paragraph 6 above, only in order to provide the Owner a reasonable time to sell the Unit to an Eligible Purchaser. If City exercises the option to purchase the Unit, it shall purchase the Unit within ninety (90) days of the date it receives the Owner's Notice of Intended Transfer, specified in Section 6 above, at the price (the "Transfer Amount") calculated in accordance with the formula set forth in Section 9, below. At any time within the 90 day period referred above, even after City notifies the 5 RESALE RESTRICnON AGREEMENT iA C" rn C.77 cr! O