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HomeMy WebLinkAbout7/7/1999 - STAFF REPORTS (15) DATE: July 7, 1999 TO: City Council FROM: Assistant City Manager-Operations MCMURTRY PROPERTY ACQUISITION -AIRPORT RECOMMENDATION: It is recommended that City Council authorize the purchase of the McMurtry residence, paying all costs, including relocation costs, and accept the Grant Deed for the property. BACKGROUND: The Airport's property acquisition program related to noise and safety includes three vacant parcels and two homes north of the Airport. Resolutions of Necessity to acquire all of these properties have been approved by the City Council. The Airport, through its consultants, has successfully negotiated the purchase of the McMurtry home. The agreed upon purchase price is $141,000, plus all costs, relocation costs and an interest buy down. Attached is a Resolution authorizing the purchase and accepting the Grant Deed. The acquisition and all costs are 90%funded by an FAA Grant and funds are available in Airport Account#415-6600-50001. ALLEN . SM OT, AAE Assistant City anager-Oper n APPROVED City ager ATTACHMENT: Resolution jyf John H. & Ruby M. McMurtry Acquisition of Real Property P.S. Reg. Airport Expansion AGREEMENT 4120 R19604, 7-7-99 _re_lated_ PALM SPRINGS REGIONAL AIRPORT EXPANSION PROJECT - - -- Riverside County Assessor's Parcel Number 501-355-005 ' q6 0. ACQUISITION OF REAL PROPERTY AGREEMENT sr y THIS AGREEMENT is entered into on this 01 — day of 1 ONe- 1999, by and between the CITY OF PALM SPRINGS, A MUNICIPAL CORPORATION (hereinafter called City), and 70HN H. MC MURTRY, JR. AND RUBY M. MC MURTRY (hereinafter called Grantor), for acquisition by City of certain real property as hereinafter described. WHEREAS, City desires to acquire all of Grantor's right, interest, and title in and to the Grantor's real property; and WHEREAS, Grantor desires to sell to City said real property; and WHEREAS, in compliance with the Eminent Domain Laws of the State of California, City has established an amount believed to be just compensation for said property and has advised Grantor of the basis for its determination of just compensation; and WHEREAS, Grantor has accepted City's offer as fair and just compensation for the hereinafter described real property interests and acknowledges said compensation is no less than fair market value; and WHEREAS, Grant Deed dated )-jNe- 1999 describing Grantor's real property to be acquired by the City (hereinafter called Property) has been executed and delivered to the Real Property Agent representing the City of Palm Springs. A copy of the Grant Deed with a corresponding legal description is attached to this Agreement. NOW, THEREFORE, IT IS MUTUALLY AGREED BY AND BETWEEN THE PARTIES HERETO AS FOLLOWS: 1. AGREEMENT TO SELL AND PURCHASE Grantor agrees to sell to City, and City agrees to purchase from Grantor, upon the terms and for the consideration set forth in this Agreement, fee simple marketable title in and to the Property described in the Grant Deed attached hereto and by reference made a part hereof. 1 OOC a m999-32m227 07/20/1999 08:00R Fee:NC Page 1 of 4 PLEASE COMPLETE THIS INFORMATION O -�-� Recorded in Official Records RECORDING REQUESTED RY: �+ County of Riverside `v )9yy�G7. Cary L. Orso Assessor, County Clerk & Recorder STEWART TITLE AND WHEN RECORDED MAIL TO: C C P� I II�III 11111 IIE 111111111111111111111111111111111111 The City of Palm Springs Post Office Box 2743 Palm Springs, CA 92263-2743 JA s PAGE SRe PA PCOR NMOR smr oust. Attention: City Clerk v3 q � COPY LONG REFUND NCHG TRa: 011005 DTr' $ o GRANT DEED l Title of Document THIS AREA FOR RECORDER ' S USE ONLY THIS PAGE ADDED TO PROVIDE ADEQUATE SPACE FOR RECORDING INFORMATION ($3.00 Additional Recording Fee Applies) 8TC'SCSD 99%(Re,9MI Stewart Title Co. RECORDING REQUESTED BY AND WHEN RECORDED MAIL TO: The City of Palm Springs Post Office Box 2743 Palm Springs, CA 92263-2743 Attention: City Clerk Exempt from Recording Fee Exempt from Documentary Transfer Tax Pursuant to Government Code Section 6103 Pursuant to R&T Code§ 11922 % Sej 7c�(p (Space above this line for Recorder's use) GRANT DEED Riverside County Assessor's Parcel Number: 501-355-005 [X] All [ ] Portion FOR A VALUABLE CONSIDERATION, receipt of which is hereby acknowledged, JOHN H. MC MURTRY JR. AND RUBY M. MC MURTRY, HUSBAND AND WIFE AS JOINT TENANTS HEREBY GRANTS TO THE CITY OF PALM SPRINGS, A MUNICIPAL CORPORATION all rights, interests, or title to the real property in the City of Palm Springs, County of Riverside, State of California described as: LOT 56 OF DESERT PARK ESTATES NO. 2, AS SHOWN BY MAP ON FILE IN BOOK 28 PAGE 99 OF MAPS, RECORDS OF RIVERSIDE COUNTY, CALIFORNIA IN WITNESS WHEREOF, the grantor hereto has caused this Grant Deed to be executed as of this A)ar day of J—VA/'L. , 1999. o H. Mc Murtry, Jr. Ru y Mc Murtry II I IIIIII I III IIII III IIIII IIIII III IIIII III IIII 0712092 9£1 8700fl CALIFORNIA ALL-PURPOSE ACKNOWLEDGMENT State of County of 'e/ .de— On lt4.ve� a/ , �f9� before me, y AibecA, Oale -�{-- / �,,/ i-Name and Title of ON er(e g,'Jane Ooe,Notary Pubbhhcn') personally appeared /D/�/1) �7 le ��U T /� d;z• at leUd y �• &I c Name(s)of Sgner(e) T ❑ personally known to me proved to me on the basis of satisfactory evidence 1 - to be the person(s) whose name(s)♦stare subscribed to the KATHY WOOLLEY within instrument and acknowledged to me that he;4t a/they Commission# 1153589 executed the same in his;,` r/their authorized capacity(ies), Notary Public-Colifomk3 and that by 14 se er/their signature(s) on the instrument the Riverside county person(s), or the entity upon behalf of which the person(s) W Comm.Expies Aug 29,2001 acted, executed the instrument. WIT SS my h d and fficial seal. Signature of Not io OP IONA Though the information below is not required by law, it may prove valuable to person relying on the docu ant and could prevent fraudulent removal and reattachment of this form to ono[ er document. Description of Attached Document Title or Type of Document: T v( 2d Document Date: CO �/ / Number of Pages: N m, Nmw Signer(s) Other Than Named Above: A/mn/P� mm �N Capacity(ies) Claimed by Signer(s) Signer's Name: /�/�I7/d✓GTI1� Signer's Name: Individual ❑ Individual ❑ Corporate Officer ❑ Corporate Officer = Title(s): Title(s): ❑ Partner—❑ Limited ❑ General ❑ Partner—❑ Limited ❑ General ❑ Attorney-in-Fact ❑ Attorney-in-Fact ❑ Trustee ❑ Trustee ❑ Guardian or Conservator ❑ Guardian or Conservator ❑ Other: Top of Thumb here ❑ Other: Top of thumb here � Signer Is Representing: Signer Is Representing: ��tld'7�UP S ©1996 National Notary Association•8236 Remmet Ave.,P.O.Box 7184•Canoga Park,CA 91309-7184 Prod.No.5907 Reorder Call Toll-Free 1-800-8]6-682] CERTIFICATE OF ACCEPTANCE THIS IS TO CERTIFY that the interest in real property conveyed by GRANT DEED dated: JUKE 21, 1999 from, JOHN H. MCMURTRY JR. AND RUBY M. MCMURTRY, HUSBAND AND WIFE AS JOINT TENANTS, Grantor, to the CITY OF PALM SPRINGS, a municipal corporation, Grantee is hereby accepted by the City Clerk of said City of Palm Springs, on this 12th day of July, 1999, pursuant to authority granted by the City Council of said City, by Resolution No. 19604 made on the 7th day of July, 1999, and the Grantee consents to recordation thereof by the City Clerk, its duly authorized officer. Dated at Palm Springs, California, this 12th day of July, 1999. PATRICIA A. SANDERS City Clerk (seal) Rev. 3/96 IIIIII IIIIII IIIII IIIIII III IIIIII IIIIII III IIIII IIII IIII e�re 9 7 4 of e eeeR a <1 �,���� Sanctity of Contract STEWART TITLE OF CALIFORNIA, INC. Inland Empire Division - Escrow Services 44-350 Monterey Avenue,Palm Desert, CA 92260 (760) 568-1874 Fax: (760)568-5479 July 2 , 1999 MR. ALLEN F . SMOOT, A.A.E . CITY OF PALM SPRINGS P. 0. BOX 2743 PALM SPRINGS, CA 92263-2743 RE: Escrow Number 29536-BK Property Address : 1841 FARRELL DRIVE PALM SPRINGS, CA 92262 DEAR MR. SMOOT: Stewart Title of California, Inc . would like to take this opportunity to congratulate you on the purchase of your new property and to introduce Betty S . Kirby, your Escrow Officer. In order to expedite your transaction, please complete, sign, and return to our office the following: (Copies are enclosed for your records) * I (X) ESCROW INSTRUCTIONS We are enclosing the following for your records : (X) PRELIMINARY REPORT dated as of JUNE 11, 1999 We at Stewart Title of California, Inc . are committed to providing you the professionalism and expertise that you desire . Should you have any questions, please do not hesitate to call . Sincerely, STEWAR T T-LE�e F 'CALIFORNIA, INC. / et y S . i'by/ J ( Escrow o ficer enclosures ---------- SPECIAL NOTICE ---------- CALIFORNIA INSURANCE CODE SECTION 12413 . 1 REGULATES THE -1- DISBURSEMENT OF ESCROW AND SUB-ESCROW FUNDS BY TITLE COMPANIES . FUNDS RECEIVED BY STEWART TITLE OF CALIFORNIA, INLAND EMPIRE DIVISION, VIA WIRE TRANSFER MAY BE DISBURSED UPON RECEIPT. FUNDS RECEIVED VIA CASHIERS CHECKS OR TELLER CHECKS MAY BE DISBURSED ON THE NEXT BUSINESS DAY AFTER THE DAY OF DEPOSIT. IF FUNDS INCLUDING SHORTAGE CHECKS ARE DISBURSED TO THIS COMPANY OTHER THAN BY TELLERS CHECK, CASHIERS CHECK, WIRE TRANSFER OR CASH, DISBURSEMENTS AND/OR CLOSING WILL BE DELAYED 3 TO 7 BUSINESS DAYS . IF YOU HAVE ANY QUESTIONS CONCERNING RECORDINGS, DEPOSITS, AND/OR DISBURSEMENTS OF ESCROW OR SUB-ESCROW FUNDS, YOU SHOULD CONTACT YOUR TITLE OFFICER OR ESCROW OFFICER. AN OUTGOING WIRE TRANSFER WILL NOT BE AUTHORIZED BY STEWART TITLE UNTIL WE HAVE CONFIRMATION OF OUR RECORDING AND ONE OF THE FOLLOWING: A. WE .-HAVE CONFIRMATION OF THE RESPECTIVE INCOMING WIRE B. COLLECTION OF A DEPOSITED CHECK ---------- WIRING INFORMATION ---------- IF YOU ANTICIPATE HAVING FUNDS WIRED TO STEWART TITLE OF CALIFORNIA, INLAND EMPIRE DIVISION, OUR WIRING INFORMATION IS AS FOLLOWS : UNION BANK OF CALIFORNIA 1980 SATURN STREET MONTEREY PARK, CA 91755 ABA 122000496 ACCOUNT #9120050750 ACCOUNT NAME: STEWART TITLE OF CALIFORNIA, INLAND EMPIRE DIVISION SUB-ESCROW TRUST ACCOUNT REF: (TITLE ORDER NUMBER) ** **WHEN INSTRUCTING THE FINANCIAL INSTITUTION TO WIRE FUNDS, IT IS VERY IMPORTANT THAT YOU REFERENCE STEWART TITLE' S ORDER NUMBER. SHOULD YOU HAVE ANY QUESTIONS IN THIS REGARD, PLEASE CONTACT YOUR TITLE OFFICER IMMEDIATELY. 507159786 THE FORM OF THE POLICY OF TITLE INSURANCE CONTEMPLATED BY THIS REPORT IS : 1 . CALIFORNIA LAND TITLE ASSOCIATION STANDARD COVERAGE POLICY (X) 2 . AMERICAN LAND TITLE ASSOCIATION OWNERS POLICY FORM B 3 . AMERICAN LAND TITLE ASSOCIATION RESIDENTIAL TITLE INSURANCE POLICY 4 . AMERICAN LAND TITLE ASSOCIATION LOAN POLICY 5 . SUBDIVISION GUARANTEE/PARCEL MAP GUARANTEE SCHEDULE A TIIE ESTATE OR INTEREST IN THE LAND HEREINAFTER DESCRIBED OR REFERRED TO COVERED BY THIS REPORT IS : A FEE TITLE TO SAID ESTATE OR INTEREST AT THE DATE HEREOF IS VESTED IN: THE DEPARTMENT OF VETERANS AFFAIRS OF THE STATE OF CALIFORNIA, AS TO THE LEGAL TITLE AND IN JOHN W. MC MURTRY, JR. , AS TO THE EQUITABLE TITLE, CREATED BY A CONTRACT OF SALE NO. 520636, DATED AUGUST 23 , 1990, AND EXECUTED BY THE DEPARTMENT OF VETERANS AFFAIRS OF THE STATE OF CALIFORNIA, AS VENDOR, AND JOHN J. MC MURTRY, JR. , AS VENDEE, RECORDED SEPTEMBER 14 , 1990 AS INSTRUMENT NO. 342403 OF OFFICIAL RECORDS . ATTACHED TO SAID CONTRACT IS AN ASSIGNMENT FROM JOHN H. MC MURTRY, JR. , AND RUBY M. MC MURTRY, HUSBAND AND WIFE, TO THEMSELVES AS JOINT TENANTS -1- 507159786 SCHEDULE A (CONTINUED) THE LAND REFERRED TO HEREIN IS SITUATED IN THE STATE OF CALIFORNIA, COUNTY OF RIVERSIDE, AND IS DESCRIBED AS FOLLOWS : LOT 56 OF DESERT PARK ESTATES NO. 2 , AS SHOWN BY MAP ON FILE IN BOOK 28 PAGE (S) 99, OF MAPS, RECORDS OF RIVERSIDE COUNTY, CALIFORNIA. -2- 507159786 SCHEDULE B AT THE DATE HEREOF, EXCEPTIONS TO COVERAGE IN ADDITION TO THE PRINTED EXCEPTIONS AND EXCLUSIONS CONTAINED IN SAID POLICY OR POLICIES WOULD BE AS FOLLOWS : A. GENERAL AND SPECIAL CITY AND/OR COUNTY TAXES FOR THE FISCAL YEAR 1999-2000 , A LIEN NOT YET DUE AND PAYABLE. B . ASSESSMENTS, IF ANY, FOR COMMUNITY FACILITY DISTRICTS AFFECTING SAID LAND WHICH MAY EXIST BY VIRTUE OF ASSESSMENT MAPS OR NOTICES FILED BY SAID DISTRICTS . SAID ASSESSMENTS ARE COLLECTED WITH THE COUNTY TAXES . C. A RESOLUTION ESTABLISHING WATERSHED BENEFIT ASSESSMENT AREAS WHICH PROVIDES FOR THE ISSUING OF BONDS AND THE LEVYING OF A SPECIAL TAX TO PAY THE INTEREST AND PRINCIPAL PAYMENTS ON SUCH BONDS UPON THE HEREIN DESCRIBED PROPERTY, RECORDED JUNE 10 , 1991 AS INSTRUMENT NOS . 193749, 193750 AND 193751 OF OFFICIAL RECORDS OF RIVERSIDE COUNTY, CALIFORNIA. REFERENCE IS HEREBY MADE TO SAID DOCUMENT FOR FURTHER AND OTHER PARTICULARS . D. THE LIEN OF SUPPLEMENTAL TAXES, IF ANY, ASSESSED PURSUANT TO THE PROVISIONS OF CHAPTER 3 . 5 , COMMENCING WITH SECTION 75 OF REVENUE AND TAXATION CODE OF THE STATE OF CALIFORNIA. 1 . WATER RIGHTS, CLAIMS OR TITLE TO WATER, WHETHER OR NOT SHOWN BY THE PUBLIC RECORDS . 2 . AN EASEMENT FOR PUBLIC UTILITIES, AND INCIDENTAL PURPOSES, AS SHOWN ON THE MAP OF SAID TRACT. SAID EASEMENT IS DESCRIBED AS FOLLOWS : THE WEST 5 FEET OF SAID LAND. 3 . AN EASEMENT FOR PUBLIC UTILITIES, AND INCIDENTAL PURPOSES, IN FAVOR OF NEVADA-CALIFORNIA ELECTRIC CORPORATION IN INSTRUMENT RECORDED JULY 8 , 1938 IN BOOK 381 PAGE 343 OF OFFICIAL RECORDS . SAID EASEMENT IS DESCRIBED AS FOLLOWS : THE WEST 5 FEET OF SAID LAND. 4 . AN EASEMENT FOR UTILITIES, AND INCIDENTAL PURPOSES, IN FAVOR OF CALIFORNIA ELECTRIC POWER COMPANY, A CORPORATION AND CALIFORNIA WATER AND TELEPHONE COMPANY IN INSTRUMENT RECORDED JULY 20 , 1955 IN BOOK 1768 PAGE 477 OF OFFICIAL RECORDS . SAID EASEMENT IS DESCRIBED AS FOLLOWS : OVER ALL PUBLIC UTILITY -3- 507159786 EASEMENTS AND WITHIN 5 FEET OF ALL DIVISION PROPERTY LINES EXCEPT SUCH LINES AS COINCIDE WITH BOUNDARY LINES OF STREETS AND ALLEYS . 5 . COVENANTS, CONDITIONS, AND RESTRICTIONS AS CONTAINED IN INSTRUMENT RECORDED AUGUST 14 , 1956 AS INSTRUMENT NO. 56720 IN BOOK 1957, PAGE 446 OF OFFICIAL RECORDS . 6 . AN EASEMENT FOR STREETS, HIGHWAYS, UNDERGROUND SEWERS, PUBLIC UTILITY INSTALLATIONS, AND FOR OTHER APPURTENANT USES, AND INCIDENTAL PURPOSES, IN FAVOR OF THE CITY OF PALM SPRINGS, IN INSTRUMENT RECORDED SEPTEMBER 27, 1988 AS INSTRUMENT NO. 278508 OF OFFICIAL RECORDS . SAID EASEMENT IS DESCRIBED AS FOLLOWS : BEING A PORTION OF LOT 56 OF THE MAP ENTITLED ' DESERT PARK ESTATES NO. 2 IN THE CITY OF PALM SPRINGS, BEING A SUBDIVISION OF A PORTION OF THE SOUTHWEST QUARTER OF SECTION 1, TOWNSHIP 4 SOUTH, RANGE 4 EAST, S .B.M. ' FILED IN BOOK 28 PAGE 99, OF MAPS, AND BEING MORE PARTICULARLY DESCRIBED AS FOLLOWS : BEGINNING AT THE SOUTHWEST CORNER OF SAID LOT 56; THENCE ALONG THE SOUTH LINE OF SAID LOT 56 SOUTH 89042100" WEST 4 . 00 FEET; THENCE LEAVING_ SAID SOUTH LINE NORTH 00014 ' 00" EAST 99 . 81 FEET TO THE BEGINNING OF A TANGENT CURVE CONCAVE SOUTHWESTERLY WITH A RADIUS OF 20 . 00 FEET; THENCE NORTHWESTERLY ALONG THE ARC OF SAID CURVE THROUGH A CENTRAL ANGLE OF 90032 ' 00 ' AN ARC DISTANCE OF 31 . 60 FEET TO A POINT ON THE NORTH LINE OF SAID LOT 56; THENCE ALONG THE NORTH LINE OF SAID LOT 56 NORTH 89042 ' 00" EAST 4 . 00 FEET TO THE BEGINNING OF A TANGENT CURVE CONCAVE SOUTHWESTERLY WITH A RADIUS OF 20 . 00 FEET; THENCE SOUTHEASTERLY ALONG THE ARC OF SAID CURVE THROUGH A CENTRAL ANGLE OF 90032 ' 00" AN ARC DISTANCE OF 31 . 60 FEET TO POINT OF THE EAST LINE OF SAID LOT 56 ; THENCE ALONG THE EAST LINE OF SAID LOT 56 SOUTH 00014 ' 00" WEST 99 . 81 FEET TO THE POINT OF BEGINNING. 7 . AN ACTION IN THE SUPERIOR COURT OF RIVERSIDE COUNTY, NOTICE OF SAID ACTION RECORDED MARCH 30, 1999 AS INSTRUMENT NO. 132818 OF OFFICIAL RECORDS : CASE NO : INC 011517 PURPOSE : TO CONDEMN AND TAKE BY RIGHT OF EMINENT DOMAIN FEE SIMPLE INTEREST IN AN APPROXIMATELY 16, 552 SQUARE FOOT PARCEL IMPROVED WITH A 1, 791 SQUARE FOOT SINGLE FAMILY RESIDENCE IN REAL PROPERTY SITUATED IN THE COUNTY OF RIVERSIDE, STATE OF CALIFORNIA, DESCRIBED IN EXHIBIT 'A' AND DEPICTED IN EXHIBIT 'B' ATTACHED HERETO AND BY THIS REFERENCE INCORPORATED HEREIN, FOR PUBLIC PURPOSES DESCRIBED IN THE COMPLAINT ON FILE WITH THE SUPERIOR COURT -4- 507159786 PLAINTIFF: CITY OF PALM SPRINGS DEFENDANT: THE SECRETARY OF VETERANS AFFAIRS, AN OFFICER OF THE UNITED STATES OF AMERICA, AND TO HIS/HER SUCCESSORS ; J.H. MC MURTRY; AND DOES 1 THROUGH 50 , INCLUSIVE 8 . THE TERMS, COVENANTS AND PROVISIONS OF THE CONTRACT REFERRED TO IN SCHEDULE A AND THE EFFECT OF ANY FAILURE TO COMPLY WITH SUCH TERMS, COVENANTS AND PROVISIONS . 9 . ANY RIGHTS OF PARTIES IN POSSESSION OF THE HEREIN DESCRIBED PROPERTY. 10 . MATTERS WHICH MAY AFFECT THE TITLE UNLESS ELIMINATED BY A STATEMENT OF IDENTITY FROM ALL PARTIES . INFORMATION NOTES : 1 . BASIC RATE 2 . AN INSPECTION OF SAID LAND DISCLOSES IMPROVEMENTS THEREON, DESIGNATED AS 1841 FARRELL DRIVE, CITY OF PALM SPRINGS, RIVERSIDE COUNTY, CALIFORNIA, A SINGLE FAMILY RESIDENCE . 3 . OUR A.L. T.A. LENDERS POLICY, WHEN ISSUED, WILL CONTAIN C. L.T.A. INDORSEMENT NO. 100 . 4 . ACCORDING TO THE PUBLIC RECORDS, THERE HAVE BEEN NO DEEDS CONVEYING THE PROPERTY HEREIN DESCRIBED IN THIS REPORT WITHIN A PERIOD OF SIX MONTHS PRIOR TO THE DATE OF THIS REPORT, EXCEPT AS FOLLOWS : (NONE) 5 . THE FOLLOWING TAXES HAVE ALL BEEN PAID AND ARE REPORTED FOR PRORATION PURPOSES ONLY. GENERAL AND SPECIAL TAXES FOR THE FISCAL YEAR 1998-1999 : TOTAL AMOUNT: $1, 375 . 90 FIRST INSTALLMENT: $687 . 95 SECOND INSTALLMENT: 1 $687 . 95 CODE AND PARCEL NO: 011005/501-355-005-4 EXEMPTION: NONE -5- CLTA PRELIMINARY REPORT FORM EXHIBIT A CLTA PRELIMINARY REPORT FORM LIST OF PRINTED EXCEPTIONS AND EXCLUSIONS - SCHEDULE B 1. CALIFORNIA LAND TITLE ASSOCIATION STANDARD COVERAGE POLICY - 1990 EXCLUSIONS FROM COVERAGE THE FOLLOWING MATTERS ARE EXPRESSLY EXCLUDED FROM THE COVERAGE OF THIS POLICY AND THE COMPANY WILL NOT PAY LOSS OR DAMAGE, COSTS, ATTORNEYS' FEES OR EXPENSES WHICH ARISE BY REASON OF 1 (A) ANY LAW, ORDINANCE OR GOVERNMENTAL REGULATION (INCLUDING BUT NOT LIMITED TO BUILDING OR ZONING LAWS, ORDINANCES, OR REGULATIONS) RESTRICTING, REGULATING, PROHIBITING OR RELATING TO (I) THE OCCUPANCY, USE, OR ENJOYMENT OF THE LAND; (II) THE CHARACTER, DIMENSIONS OR LOCATION OF ANY IMPROVEMENT NOW OR HEREAFTER ERECTED ON THE LAND; (III) A SEPARATION IN OWNERSHIP OR A CHANGE IN THE DIMENSIONS OR AREA OF THE LAND OR ANY PARCEL OF WHICH THE LAND IS OR WAS A PART, OR (IV) ENVIRONMENTAL PROTECTION, OR THE EFFECT OF ANY VIOLATION OF THESE LAWS, ORDINANCES OR GOVERNMENTAL REGULATIONS, EXCEPT TO THE EXTENT THAT A NOTICE OF THE ENFORCEMENT THEREOF OR A NOTICE OF A DEFECT, LIEN OR ENCUMBRANCE RESULTING FROM A VIOLATION OR ALLEGED VIOLATION AFFECTING THE LAND HAS BEEN RECORDED IN THE PUBLIC RECORDS AT DATE OR POLICY IB) ANY GOVERNMENTAL POLICE POWER NOT EXCLUDED BY (A) ABOVE, EXCEPT TO THE EXTEND THAT A NOTICE OF THE EXERCISE THEREOF OR NOTICE OF A DEFECT, LIEN OR ENCUMBRANCE RESULTING FROM A VIOLATION OR ALLEGED VIOLATION AFFECTING THE LAND HAS BEEN RECORDED IN THE PUBLIC RECORDS AT DATE OF POLICY. 2. RIGHTS OF EMINENT DOMAIN UNLESS NOTICE OF THE EXERCISE THEREOF HAS BEEN RECORDED IN THE PUBLIC RECORDS AT DATE OF POLICY, BUT NOT EXCLUDING FROM COVERAGE ANY TAKING WHICH HAS OCCURRED PRIOR TO DATE OF POLICY WHICH WOULD BE BINDING ON THE RIGHTS OF A PURCHASER FOR VALUE WITHOUT KNOWLEDGE, 3 DEFECTS, LIENS, ENCUMBRANCES, ADVERSE CLAIMS OR OTHER MATTERS (A) WHETHER OR NOT RECORDED IN THE PUBLIC RECORDS AT DATE OF POLICY, BUT CREATED, SUFFERED, ASSUMED OR AGREED TO BY THE INSURED CLAIMANT; (9) NOT KNOWN TO THR-COMPANY, NOT RECORDED IN THE PUBLIC RECORDS AT DATE OF POLICY, BUT KNOWN TO THE INSURED CLAIMANT AND NOT DISCLOSED IN WRITING TO THE COMPANY BY THE INSURED CLAIMANT PRIOR TO THE DATE THE INSURED CLAIMANT BECAME AN INSURED UNDER THIS POLICY; (C) RESULTING IN NO LOSS OR DAMAGE TO THE INSURED CLAIMANT, (D) ATTACHING OR CREATED SUBSEQUENT TO DATE OF POLICY; OR (E) RESULTING IN LOSS OR DAMAGE WHICH WOULD NOT HAVE BEEN SUSTAINED IF THE INSURED CLAIMANT HAD PAID VALUE FOR THE INSURED MORTGAGE OR FOR THE ESTATE OR INTEREST INSURED BY THIS POLICY. 4 UNENFORCEABLILITY OF THE LIEN OF THE INSURED MORTGAGE BECAUSE OF THE INABILITY OR FAILURE OF THE INSURED AT DATE OF POLICY, OR THE INABILITY OR FAILURE OF ANY SUBSEQUENT OWNER OR INDEBTEDNESS, TO COMPLY WITH THE APPLICABLE ➢OING BUSINESS LAWS, OF THE STATE IN WHICH THE LAND IS SITUATED. 5 INVALIDITY OR UNENFORCEABILITY OF THE LIEN OF THE INSURED MORTGAGE, OR CLAIM THEREOF, WHICH ARISES OUT OF THE TRANSACTION EVIDENCED BY THE INSURED MORTGAGE AND IS BASED UPON USURY OR ANY CONSUMER CREDIT PROTECTION OR TRUTH IN LENDING LAW. 6. ANY CLAIM, WHICH ARISES OUT OF THE TRANSACTION VESTING IN THE INSURED THE ESTATE OR INTEREST INSURED BY THIS POLICY OR THE TRANSACTION CREATING THE INTEREST OF THE INSURED LENDER, BY REASON OF THE OPERATION OF FEDERAL BANKRUPTCY, STATE INSOLVENCY OR SIMILAR CREDITORS' RIGHTS LAWS. EXCEPTIONS FROM COVERAGE THIS POLICY DOES NOT INSURE AGAINST LOSS OR DAMAGE (AND THE COMPANY WILL NOT PAY COSTS, ATTORNEYS' FEES OR EXPENSES) WHICH ARISE BY REASON OF: I. TAXES OR ASSESSMENTS WHICH ARE NOT SHOWN AS EXISTING LIENS BY THE RECORDS OF ANY TAXING AUTHORITY THAT LEVIES TAXES OR ASSESSMENTS ON REAL PROPERTY OR BY THE PUBLIC RECORDS PROCEEDINGS BY A PUBLIC AGENCY WHICH MAY RESULT IN TAXES OR ASSESSMENTS, OR NOTICES OF SUCH PROCEEDINGS, WHETHER OR NOT SHOWN BY THE RECORDS OF SUCH AGENCY OR BY THE PUBLIC RECORDS 2 ANY FACTS, RIGHTS, INTERESTS OR CLAIMS WHICH ARE NOT SHOWN BY THE PUBLIC RECORDS BUT WHICH COUL➢ BE ASCERTAINED BY AN INSPECTION OF THE LAND OR WHICH MAY BE ASSERTED BY PERSONS IN POSSESSION THEREOF. 3. EASEMENTS, LIENS OR ENCUMBRANCES, OR CLAIMS THEREOF, WHICH ARE NOT SHOWN BY THE PUBLIC RECORDS. 4. DISCREPANCIES, CONFLICTS IN BOUNDARY LINES, SHORTAGE IN AREA, ENCROACHMENTS, OR ANY OTHER FACTS WHICH A CORRECT SURVEY WOULD DISCLOSE, AND WHICH ARE NOT SHOWN BY THE PUBLIC RECORDS. 5. (A) UNPATENTED MINING CLAIMS; (B) RESERVATIONS OR EXCEPTIONS IN PATENTS OR IN ACTS AUTHORIZING THE ISSUANCE THEREOF; (C) WATER RIGHTS, CLAIMS OR TITLE TO WATER, WHETHER OR NOT THE MATTERS EXCEPTED UNDER (A), (B) OR (C) ARE SHOWN BY THE PUBLIC RECORDS (LIST OF PRINTED EXCEPTIONS AND EXCLUSIONS CONTINUED ON NEXT PAGE) REV 1999 STEWART TITLE GUARANTY COMPANY PAGE 1 OF 6 CLTA PRELIMINARY REPORT FORM 2. AMERICAN LAND TITLE ASSOCIATION RESIDENTIAL TITLE INSURANCE POLICY (6-1-87) EXCLUSIONS IN ADDITION TO THE EXCEPTIONS IN SCHEDULE B, YOU ARE NOT INSURED AGAINST LOSS, COSTS, ATTORNEYS, FEES, AND EXPENSES RESULTING FROM. 1 GOVERNMENTAL POLICE POWER, AND THE EXISTENCE OR VIOLATION OF ANY LAW OR GOVERNMENTAL REGULATION. THIS INCLUDES BUILDING AND ZONING ORDINANCES AND ALSO LAWS AND REGULATIONS CONCERNING. * LAND USE * IMPROVEMENTS ON THE LAND ' LAND DIVISION * ENVIRONMENTAL PROTECTION THIS EXCLUSION DOES NOT APPLY TO VIOLATIONS OR THE ENFORCEMENT OF THESE MATTERS WHICH APPEAR IN THE PUBLIC RECORDS AT POLICY DATE. THIS EXCLUSION DOES NOT LIMIT THE ZONING COVERAGE DESCRIBED IN ITEMS 12 AND 13 OF COVERED TITLE RISKS. 2. THE RIGHT TO TAKE THE LAND BY CONDEMNING IT, UNLESS: ` A NOTICE OF EXERCISING THE RIGHT APPEARS IN THE PUBLIC RECORDS ON THE POLICY DATE + THE TAKING HAPPENED PRIOR TO THE POLICY DATE AND IS BINDING ON YOU IF YOU BOUGHT THE LAND WITHOUT KNOWING OF THE TAKING 3 TITLE RISKS: * THAT ARE CREATED, ALLOWED, OR AGREED TO BY YOU ' THAT ARE KNOWN TO YOU, BUT NOT TO US, ON THE POLICY DATE - - UNLESS THEY APPEARED IN THE PUBLIC RECORDS ` THAT RESULT IN NO LOSS TO YOU " THAT FIRST AFFECT YOUR TITLE AFTER THE POLICY DATE - - THIS DOES NOT LIMIT THE LABOR AND MATERIAL LIEN COVERAGSTN ITEM S OF COVERED TITLE RISKS 4 FAILURE TO PAY VALUE FOR YOUR TITLE. 5 LACK OF A RIGHT ' TO ANY LAND OUTSIDE THE AREA SPECIFICALLY DESCRIBED AND REFERRED TO IN ITEM 3 OF SCHEDULE A OR " IN STREETS, ALLEYS, OR WATERWAYS THAT TOUCH YOUR LAND THIS EXCLUSION DOES NOT LIMIT THE ACCESS COVERAGE IN ITEM 5 OF COVERED TITLE RISKS EXCEPTIONS FROM COVERAGE THIS POLICY DOES NOT INSURE AGAINST LOSS OR DAMAGE (AND THE COMPANY WILL NOT PAY COSTS, ATTORNEYS, FEES OR EXPENSES) WHICH ARISE BY REASON OF: I ANY RIGHTS, INTERESTS, OR CLAIMS OF PARTIES IN POSSESSION OF THE LAND NOT SHOWN BY THE PUBLIC RECORDS. 2. ANY EASEMENTS OR LIENS NOT SHOWN BY THE PUBLIC RECORDS. THIS ORES NOT LIMIT THE LIEN COVERAGE IN ITEM B OF COVERED TITLE RISKS. 3 ANY FACTS ABOUT THE LAND WHICH A CORRECT SURVEY WOULD DISCLOSE AND WHICH ARE NOT SHOWN BY THE PUBLIC RECORDS. THIS DOES NOT LIMIT THE FORCED REMOVAL COVERAGE IN ITEM 12 OF COVERED TITLE RISKS. 4. ANY WATER RIGHTS OR CLAIMS OR TITLE TO WATER IN OR UNDER THE LAND, WHETHER OR NOT SHOWN BY THE PUBLIC RECORDS. (LIST OF PRINTED EXCEPTIONS AND EXCLUSIONS CONTINUED ON NEXT PAGE) REV. 1999 STEWART TITLE GUARANTY COMPANY PAGE 2 OF 6 CLTA PRELIMINARY REPORT FORM 3 . AMERICAN LAND TITLE ASSOCIATION LOAN POLICY (10-17-92) WITH ALTA ENDORSEMENT - FORM 1 COVERAGE AND AMERICAN LAND TITLE ASSOCIATION LEASEHOLD LOAN POLICY (10-17-92) WITH ALTA ENDORSEMENT - FORM 1 COVERAGE EXCLUSIONS AND COVERAGE THE FOLLOWING MATTERS ARE EXPRESSLY EXCLUDED FROM THE COVERAGE OF THIS POLICY AND THE COMPANY WILL NOT PAY LOSS OR DAMAGE, COSTS, ATTORNEY'S FEES OR EXPENSES WHICH ARISE BY REASON OF: 1. (A) ANY LAW, ORDINANCE OR GOVERNMENTAL REGULATION (INCLUDING BUT NOT LIMITED TO BUILDING AND ZONING LAWS, ORDINANCES, OR REGULATIONS) RESTRICTING, REGULATING, PROHIBITING OR RELATING TO (I) THE OCCUPANCY, USE, OR ENJOYMENT OF THE LAND; (II) THE CHARACTER, DIMENSIONS OR LOCATION OF ANY IMPROVEMENT NOW OR HEREAFTER ERECTED ON THE LAND; (III) A SEPARATION IN OWNERSHIP OR A CHANGE IN THE DIMENSIONS OR AREA OF THE LAND OR ANY PARCEL OF WHICH THE LAND IS OR WAS A PART, OR (IV) ENVIRONMENTAL PROTECTION, OR THE EFFECT OF ANY VIOLATION OF THESE LAWS, ORDINANCES OR GOVERNMENTAL REGULATIONS, EXCEPT TO THE EXTENT THAT A NOTICE OF THE ENFORCEMENT THEREOF OR A NOTICE OF A DEFECT, LIEN OR ENCUMBRANCE RESULTING FROM A VIOLATION OR ALLEGED VIOLATION AFFECTING THE LAND HAS BEEN RECORDED IN THE PUBLIC RECORDS AT DATE OF POLICY (9) ANY GOVERNMENTAL POLICE POWER NOT EXCLUDED BY (A) ABOVE, EXCEPT TO THE EXTENT THAT A NOTICE OF THE EXERCISE THEREOF OR A NOTICE OF A DEFECT, LIEN OR ENCUMBRANCE RESULTING FROM A VIOLATION OR ALLEGED VIOLATION AFFECTING THE LAND HAS BEEN RECORDED IN THE PUBLIC RECORDS AT DATE OF POLICY. 2 RIGHTS OF EMINENT DOMAIN UNLESS NOTICE OF THE EXERCISE THEREOF HAS BEEN RECORDED IN THE PUBLIC RECORDS AT DATE OF-POLICY, BUT NOT EXCLUDING FROM COVERAGE ANY TAXING WHICH HAS OCCURRED PRIOR TO DATE OF POLICY WHICH WOULD BE BINDING ON THE RIGHTS OF A PURCHASER FOR VALUE WITHOUT KNOWLEDGE. 3' DEFECTS, LIENS, ENCUMBRANCES, ADVERSE CLAIMS OR OTHER MATTERS: (A) CREATED, SUFFERED, ASSUMED OR AGREED TO BY THE INSURED CLAIMANT; (S) NOT KNOWN TO THE COMPANY, NOT RECORDED IN THE PUBLIC RECORDS AT DATE OF POLICY, BUT KNOWN TO THE INSURED CLAIMANT AND NOT DISCLOSED IN WRITING TO THE COMPANY BY THE INSURED CLAIMANT PRIOR TO THE DATE THE INSURED CLAIMANT BECAME AN INSURED UNDER THIS POLICY; 'C) RESULTING IN NO LOSS OR DAMAGE TO THE INSURED CLAIMANT; ;D) ATTACHING OR CREATED SUBSEQUENT TO DATE OF POLICY (EXCEPT TO THE EXTENT THAT THIS POLICY INSURES THE PRIORITY OF THE LIEN OF THE INSURED MORTGAGE OVER ANY STATUTORY LIEN FOR SERVICES, LABOR OR MATERIAL OR TO THE EXTENT INSURANCE IS AFFORDED HEREIN AS TO THE ASSESSMENTS FOR STREET IMPROVEMENTS UNDER CONSTRUCTION OR COMPLETED AT DATE OF POLICY), OR (E) RESULTING IN LOSS OR DAMAGE WHICH WOULD NOT HAVE BEEN SUSTAINED IF THE INSURED CLAIMANT HAD PAID VALUE FOR THE INSURED MORTGAGE. 9. UNENFORCEAB ILITY OF THE LIEN OF THE INSURED MORTGAGE BECAUSE OF THE INABILITY OR FAILURE OF THE INSURED AT DATE OF POLICY, OR THE INABILITY OR FAILURE OF ANY SUBSEQUENT OWNER OF THE INDEBTEDNESS, TO COMPLY WITH APPLICABLE DOING BUSINESS LAWS OF THE STATE IN WHICH THE LAND IS SITUATED. 5 INVALIDITY OR UNENFORCEABILITY OF THE LIEN OF THE INSURED MORTGAGE, OR CLAIM THEREOF, WHICH ARISES OUT OF THE TRANSACTION EVIDENCED BY THE INSURED MORTGAGE AND IS BASED UPON USURY OR ANY CONSUMER CREDIT PROTECTION OR TRUTH IN LENDING LAW. 6 ANY STATUTORY LIEN FOR SERVICES, LABOR OR MATERIALS (OR THE CLAIM OF PRIORITY OF ANY STATUTORY LIEN FOR SERVICES, LABOR OR MATERIALS OVER THE LIEN OF THE INSURED MORTGAGE) ARISING FROM AN IMPROVEMENT OR WORK RELATED TO THE LAND WHICH IS CONTRACTED FOR AND COMMENCED SUBSEQUENT TO DATE OF POLICY AND IS NOT FINANCED IN WHOLE OR IN PART BY PROCEEDS OF THE INDEBTEDNESS SECURED BY THE INSURED MORTGAGE WHICH AT DATE OF POLICY THE INSURED HAS ADVANCED OR IS OBLIGATED TO ADVANCE. 7. ANY CLAIM, WHICH ARISES OUT OF THE TRANSACTION CREATING THE INTEREST OF THE MORTGAGEE INSURED BY THIS POLICY, BY REASON OF THE OPERATION OF FEDERAL BANKRUPTCY, STATE INSOLVENCY, OR SIMILAR CREDITORS' RIGHTS LAWS, THAT IS BASED ON. (I) THE TRANSACTION CREATING THE INTEREST OF THE INSURED MORTGAGEE BEING DEEMED A FRAUDULENT CONVEYANCE OR FRAUDULENT TRANSFER, OR (II) THE SUBORDINATION OF THE INTEREST OF THE INSURED MORTGAGEE AS A RESULT OF THE APPLICATION OF THE DOCTRINE OR EQUITABLE SUBORDINATION; OR (III) THE TRANSACTION CREATING THE INTEREST OF THE INSURED MORTGAGEE BEING DEEMED A PREFERENTIAL TRANSFER EXCEPT WHERE THE PREFERENTIAL TRANSFER RESULTS FROM THE FAILURE: (A) TO TIMELY RECORDED THE INSTRUMENT OF TRANSFER; OR (B) OF SUCH RECORDATION TO IMPART NOTICE TO A PURCHASER FOR VALUE OR A JUDGMENT OR LIEN CREDITOR. (LIST OF PRINTED EXCEPTIONS AND EXCLUSIONS CONTINUED ON NEXT PAGE) REV 1999 STEWART TITLE GUARANTY COMPANY PAGE 3 OF 6 CLTA PRELIMINARY REPORT FORM h- ABOVE POLICY FORMS MAY BE ISSUED TO AFFORD EITHER STANDARD COVERAGE OR EXTENDED COVERAGE. IN ADDITION TO THE ABOVE EXCLUSIONS FROM COVERAGE, THE EXCEPTIONS FROM COVERAGE IN A STANDARD COVERAGE POLICY WILL INCLUDE THE FOLLOWING GENERAL EXCEPTIONS: EXCEPTIONS FROM COVERAGE THIS POLICY DOES NOT INSURE AGAINST LOSS OR DAMAGE (AND THE COMPANY WILL NOT PAY COSTS, ATTORNEYS' FEES OR EXPENSES) WHICH ARISE BY REASON OF. 1. TAXES OR ASSESSMENTS WHICH ME NOT SHOWN AS EXISTING LIENS BY THE RECORDS OF ANY TAXING AUTHORITY THAT LEVIES TAXES OR ASSESSMENTS ON REAL PROPERTY OR BY THE PUBLIC RECORDS. PROCEEDINGS BY A PUBLIC AGENCY WHICH MAY RESULT IN TAXES OR ASSESSMENTS, OR NOTICES OF SUCH PROCEEDINGS, WHETHER OR NOT SHOWN BY THE RECORDS OF SUCH AGENCY OR BY THE PUBLIC RECORDS. 2 ANY FACTS, RIGHTS, INTERESTS OR CALIMS WHICH ARE NOT SHOWN BY THE PUBLIC RECORDS BUT WHICH COULD BE ASCERTAINED BY AN INSPECTION OF THE LAND OR BY MAKING INQUIRY OF PERSONS IN POSSESSION THEREOF. 3. EASEMENTS, LIENS OR ENCUMMBRANCES, OR CLAIMS THEREOF, WHICH ARE NOT SHOWN BY THE PUBLIC RECORDS. 4. DISCREPANCIES, CONFLICTS IN BOUNDARY LINES, SHORTAGE IN AREA, ENCROACHMENTS, OR ANY OTHER FACTS WHICH A CORRECT SURVEY WOULD DISCLOSE, AND WHICH ARE NOT SHOWN BY THE PUBLIC RECORDS. 5. (A) UNPATENTED MINING CLAIMS; (B) RESERVATIONS OR EXCEPTIONS IN PATENTS OR IN ACTS AUTHORIZING THE ISSUANCE THEREOF; (C) WATER RIGHTS, CLAIMS OR TITLE TO WATER, WHETHER OR NOT THE MATTERS EXCEPTED UNDER (A), (B) OR (C) ARE SHOWN BY THE PUBLIC RECORDS. 4. AMERICAN LAND TITLE ASSOCIATION OWNER'S POLICY (10-17-92) AND AMERICAN LAND TITLE ASSOCIATION LEASEHOLD OWNER'S POLICY (10-17-92) EXCLUSIONS FROM COVERAGE THE FOLLOWING MATTERS ARE EXPRESSLY EXCLUDED FROM THE COVERAGE OF THIS POLICY AND THE COMPANY WILL NOT PAY LOSS OR DAMAGE, COST, ATTORNEYS' FEES OR EXPENSES WHICH ARISE BY REASON OF: (A) ANY LAW, ORDINANCE OR GOVERNMENTAL REGULATION (INCLUDING BUT NOT LIMITED TO BUILDING AND ZONING LAWS, ORDINANCES, OR REGULATIONS) RESTRICTING, REGULATING, PROHIBITING OR RELATING TO (I) THE OCCUPANCY, USE, OR ENJOYMENT OF THE LAND; (II) THE CHARACTER, DIMENSIONS OR LOCATION OF ANY IMPROVEMENT NOW OR HEREAFTER ERECTED ON THE LAND; (III) A SEPARATION IN OWNERSHIP OR A CHANGE IN THE DIMENSIONS OR AREA OF THE LAND OR ANY PARCEL OF WHICH THE LAND IS OR WAS A PART; OR (IV) ENVIRONMENTAL PROTECTION, OR THE EFFECT OF ANY VIOLATION OF THESE LAWS, ORDINANCES OR GOVERNMENTAL REGULATIONS, EXCEPT TO THE EXTENT THAT A NOTICE OF THE ENFORCEMENT THEREOF OR A NOTICE OF A DEFECT, LIEN OR ENCUMBRANCE RESULTING FROM A VIOLATION OR ALLEGED VIOLATION AFFECTING THE LAND HAS BEEN RECORDED IN THE PUBLIC RECORDS AT DATE OF POLICY. (B) ANY GOVERNMENTAL POLICE POWER NOT EXCLUDED BY (A) ABOVE, EXCEPT TO THE EXTENT THAT A NOTICE OF THE EXERCISE THEREOF OR A NOTICE OF A DEFECT, LIEN OR ENCUMBRANCE RESULTING FROM A VIOLATION OR ALLEGED VIOLATION AFFECTING THE LAND HAS BEEN RECORDED IN THE PUBLIC RECORDS AT DATE OF POLICY. 2 RIGHTS OF EMINENT DOMAIN UNLESS NOTICE OF THE EXERCISE THEREOF HAS BEEN RECORDED IN THE PUBLIC RECORDS AT DATE OF POLICY, BUT NOT EXCLUDING FROM COVERAGE ANY TAKING WHICH HAS OCCURRED PRIOR TO DATE OF POLICY WHICH WOULD BE BINDING ON THE RIGHTS OF A PURCHASER FOR VALUE WITHOUT KNOWLEDGE 3 DEFECTS, LIENS, ENCUMBRANCES, ADVERSE CLAIMS OR OTHER MATTERS (A) CREATED, SUFFERED, ASSUMED OR AGREED TO BY THE INSURED CLAIMANT; (B) NOT KNOWN TO THE COMPANY, NOT RECORDED IN THE PUBLIC RECORDS AT DATE OF POLICY, BUT GROWN TO THE INSURED CLAIMANT AND NOT DISCLOSED IN WRITING TO THE COMPANY BY THE INSURED CLAIMANT PRIOR TO THE DATE THE INSURED CLAIMANT BECAME AN INSURED UNDER THIS POLICY, (C) RESULTING IN NO LOSS OR DAMAGE TO THE INSURED CLAIMANT; (D) ATTACHING OR CREATED SUBSEQUENT TO DATE OF POLICY; OR (E) RESULTING IN LOSS OR DAMAGE WHICH WOULD NOT HAVE BEEN SUSTAINED IF THE INSURED CLAIMANT HAD PAID VALUE FOR THE ESTATE OR INTEREST INSURED BY THIS POLICY. 4. ANY CLAIM, WHICH ARISES OUT OF THE TRANSACTION VESTING IN THE INSURED THE ESTATE OR INTEREST INSURED BY THIS POLICY, BY REASON OF THE OPERATION OF FEDERAL BANKRUPTCY, STATE INSOLVENCY, OR SIMILAR CREDITORS' RIGHTS LAWS, THAT IS BASED ON: (I) THE TRANSACTION CREATING THE ESTATE OR INTEREST INSURED BY THIS POLICY BEING DEEMED A FRAUDULENT CONVEYANCE OR FRAUDULENT TRANSFER; OR (II) THE TRANSACTION CREATING THE ESTATE OR INTEREST INSURED BY THIS POLICY BEING DEEMED A PREFERENTIAL TRANSFER EXCEPT WHERE THE PREFERENTIAL TRANSFER RESULTS FROM THE FAILURE: (A) TO TIMELY RECORD THE INSTRUMENT OF TRANSFER; OR (B) OF SUCH RECORDATION TO IMPART NOTICE TO A PURCHASER FOR VALUE OR A JUDGMENT OR LIEN CREDITOR. (LIST OF PRINTED EXCEPTIONS AND EXCLUSIONS CONTINUED ON NEXT PAGE) REV. 1999 STEWART TITLE GUARANTY COMPANY PAGE 4 OF 6 CLTA PRELIMINARY REPORT FORM THE ABOVE POLICY FORMS MAY BE ISSUED TO AFFORD EITHER STANDARD COVERAGE OR EXTENDED COVERAGE IN ADDITION TO THE ABOVE EXCLUSIONS FROM COVERAGE, THE EXCEPTIONS FROM COVERAGE IN A STANDARD COVERAGE POLICY WILL INCLUDE THE FOLLOWING GENERAL EXCEPTIONS EXCEPTIONS FROM COVERAGE THIS POLICY DOES NOT INSURE AGAINST LOSS OR DAMAGE (AND THE COMPANY WILL NOT PAY COSTS, ATTORNEYS' FEES OR EXPENSES) WHICH ARISE BY REASON OF: 1 TAXES OR ASSESSMENTS WHICH ARE NOT SHOWN AS EXISTING LIENS BY THE RECORDS OF ANY TAXING AUTHORITY THAT LEVIES TAXES OR ASSESSMENTS ON REAL PROPERTY OR BY THE PUBLIC RECORDS. PROCEEDINGS BY A PUBLIC AGENCY WHICH NAY RESULT IN TAXES OR ASSESSMENTS, OR NOTICES OF SUCH PROCEEDINGS, WHETHER OR NOT SHOWN BY THE RECORDS OF SUCH AGENCY OR BY THE PUBLIC RECORDS 2 ANY FACTS, RIGHTS, INTERESTS OR CLAIMS WHICH ARE NOT SHOWN BY THE PUBLIC RECORDS BUT WHICH COULD BE ASCERTAINED BY AN INSPECTION OF THE LAND OR BY MAKING INQUIRY OF PERSONS IN POSSESSION THEREOF. 3 EASEMENTS, LIENS OR ENCUMBRANCES, OR CLAIMS THEREOF, WHICH ARE NOT SHOWN BY THE PUBLIC RECORDS. 4 DISCREPANCIES, CONFLIICTS IN BOUNDARY LINES, SHORTAGE IN AREA, ENCROACHMENTS, OR ANY OTHER FACTS WHICH A CORRECT SURVEY WOULD DISCLOSE, AND WHICH ARE NOT SHOWN BY THE PUBLIC RECORDS 5. (A) UNPATENTED MINING CLAIMS; (B) RESERVATIONS OR EXCEPTIONS IN PATENTS OR IN ACTS AUTHORIZING THE ISSUANCE THEREOF, (C) WATER RIGHTS, CLAIMS OR TITLE TO WATER, WHETHER OR NOT THE MATTERS EXCEPTED UNDER (A) , (B) OR (C) ARE SHOWN BY THE PUBLIC RECORDS 5. CLTA HOMEOWNER'S POLICY OF TITLE INSURANCE (6-2-98) ALTA HOMEOWNER'S POLICY OF TITLE INSURANCE (10-17-98) EXCLUSIONS IN ADDITION TO THE EXCEPTIONS IN SCHEDULE B, YOU ARE NOT INSURED AGAINST LOSS, COSTS, ATTORNEYS' FEES, AND EXPENSES RESULTING FROM: 1 GOVERNMENTAL POLICE POWER, AND THE EXISTENCE OR VIOLATION OF ANY LAW OR GOVERNMENT REGULATION THIS INCLUDES ORDINANCES, LAWS AND REGULATIONS CONCERNING A BUILDING B. ZONING C. LAND USE D IMPROVEMENTS ON LAND E. LAND DIVISION F ENVIRONMENTAL PROTECTION THIS EXCLUSION DOES NOT APPLY TO VIOLATIONS OR THE ENFORCEMENT OF THESE MATTERS IF NOTICE OF THE VIOLATION OR ENFORCEMENT APPEARS IN THE PUBLIC RECORDS AT THE POLICY DATE. THIS EXCLUSION DOES NOT LIMIT THE COVERAGE DESCRIBED IN COVERED RISK 14, 15, 16, 19, OR 24 2. THE FAILURE OF YOUR EXISTING STRUCTURES, OR ANY PART OF THEM, TO BE CONSTRUCTED IN ACCORDANCE WITH APPLICABLE BUILDING CODES. THIS EXCLUSION DOES NOT APPLY TO VIOLATIONS OF BUILDING CODES IF NOTICE OF THE VIOLATION APPEARS IN THE PUNLIC RECORDS AT THE POLICY DATE. 3 THE RIGHT TO TAKE THE LAND BY CONDEMNING IT, UNLESS: A NOTICE OF EXERCISING THE RIGHT APPEARS IN THE PUNLIC RECORDS AT THE POLICY DATE; OR B THE TAKING HAPPENED BEFORE THE POLICY DATE AND IS BINDING ON YOU IF YOU BOUGHT THE LAND WITHOUT KNOWING OF THE TAKING. 4. RISKS: A THAT ARE CREATED, ALLOWED, OR AGREED TO BY YOU, WHETHER OR NOT THEY APPEAR IN THE PUBLIC RECORDS; B THAT ARE KNOWN TO YOU AT THE POLICY DATE, BUT NOT TO US, UNLESS THEY APPEAR IN THE PUBLIC RECORDS AT THE POLICY DATE; C. THAT RESULT IN NO LOSS TO YOU, OR D. THAT FIRST OCCUR AFTER THE POLICY DATE - THIS DOES NOT LIMIT THE COVERAGE DESCRIBED IN COVERED RISK 7, B D, 22, 23, 24 OR 25. 5 FAILURE TO PAY VALUE FOR YOUR TITLE. 6. LACK OF A RIGHT A. TO ANY LAND OUTSIDE THE AREA SPECIFICALLY DESCRIBE➢ AND REFERRED TO IN PARAGRAPH 3 OF SCHEDULE A, AND B IN STREETS, ALLEYS, OR WATERWAYS THAT TOUCH THE LAND. THIS EXCLUSION DOES NOT LIMIT THE COVERAGE DESCRIBED IN COVERED RISK 11 OR 18. REV 1999 STEWART TITLE GUARANTY COMPANY PAGE 5 OF 6 6. "GOLD" COMPREHENSIVE PROTECTION LOAN POLICY OF TITLE INSURANCE EXCLUSIONS FROM COVERAGE THE FOLLOWING MATTERS ARE EXPRESSLY EXCLUDED FROM THE COVERAGE OF THIS POLICY AND THE COMPANY WILL NOT PAY LOSS OR DAMAGE, COST, ATTORNEYS' FEES OR EXPENSES WHICH ARISE BY REASON OF 'A ANY LAW, ORDINANCE OR GOVERNMENTAL REGULATION ;INCLUDING BUT NOT LIMITED TO BUILDING AND ZONING LAWS, ORDINANCES, OR REGULATIONS) RESTRICTING, REGULATING, PROHIBITING OR RELATING TO (I) THE OCCUPANCY, USE, OR ENJOYMENT OF THE LAND; (II) THE CHARACTER, DIMENSIONS OR LOCATION OF ANY IMPROVEMENT NOW OR HEREAFTER ERECTED ON THE LAND; (III) A SEPARATION IN OWNERSHIP OR A CHANGE IN THE DIMENSIONS OR AREA OF THE LAND OR ANY PARCEL OF WHICH THE LAND IS OR WAS A PART; OR (IV) ENVIRONMENTAL PROTECTION, OR THE EFFECT OF ANY VIOLATION OF THESE LAWS, ORDINANCES OR GOVERNMENTAL REGULATIONS, EXCEPT TO THE EXTENT THAT A NOTICE OF THE ENFORCEMENT THEREOF OR A NOTICE OF A DEFECT, LIEN OR ENCUMBRANCE RESULTING FROM A VIOLATION OR ALLEGED VIOLATION AFFECTING THE LAND HAS BEEN RECORDED IN THE PUBLIC RECORDS AT DATE OF POLICY THIS EXCLUSION FROM COVERAGE 1(A) DOES NOT LIMIT THE COVERAGE PROVIDED IN INSURING PROVISIONS NUM➢ER 14, 15, 16, 19, 34, AND 41. (B) ANY GOVERNMENTAL POLICE POWER NOT EXCLUDED BY (A) ABOVE, EXCEPT TO THE EXTENT THAT A NOTICE OF THE EXERCISE THEREOF OR A NOTICE OF A DEFECT, LIEN OR ENCUMBRANCE RESULTING FROM A VIOLATION OR ALLEGED VIOLATION AFFECTING THE LAND HAS BEEN RECORDED IN THE PUBLIC RECORDS AT DATE OF POLICY. THIS EXCLUSION FROM COVERAGE 1(A) DOES NOT LIMIT THE COVERAGE PROVIDED IN INSURING PROVISIONS NUMBER 14, 15, 16, 19, 34, AND 41 2. RIGHTS OF EMINENT DOMAIN UNLESS NOTICE OF THE EXERCISE THEREOF HAS BEEN RECORDED IN THE PUBLIC RECORDS AT DATE OF POLICY, BUT NOT EXCLUDING FROM COVERAGE ANY TAKING WHICH HAS OCCURRED PRIOR TO DATE OF POLICY WHICH WOULD BE BINDING ON THE RIGHTS OF A PURCHASER FOR VALUE WITHOUT KNOWLEDGE 3. DEFECTS, LIENS, ENCUMBRANCES, ADVERSE CLAIMS OR OTHER MATTERS. (A) CREATED, SUFFERED, ASSUMED OR AGREED TO BY THE INSURED CLAIMANT; (B) NOT KNOWN TO THE COMPANY, NOT RECORDED IN THE PUBLIC RECORDS AT DATE OF POLICY, BUT KNOWN TO THE INSURED CLAIMANT AND NOT DISCLOSED IN WRITING TO THE COMPANY BY THE INSURED CLAIMANT PRIOR TO THE DATE THE INSURED CLAIMANT BECAME AN INSURED UNDER THIS POLICY; (C) RESULTING IN NO 1 OSS OR DAMAGE TO THE INSURED CLAIMANT; (D) ATTACHING OR CREATED SUBSEQUENT TO DATE OF POLICY (THIS EXCLUSION FROM COVERAGE 3 (D) DOES NOT LIMIT THE COVERAGE PROVIDED IN INSURING PROVISIONS NUMBER 0, 8, 15, 16, 18, 21, 22, 24, 25, 26, 2B, 29, 30, 32, 33, 34, 35. 38, 39, AND 40) ; 'E) RESULTING IN LOSS OR DAMAGE WHICH WOULD NOT HAVE BEEN SUSTAINED IF THE INSURED CLAIMANT HAD PAID VALUE FOR T14E INSURED MORTGAGE. 4. UNENFORCEABILITY OF THE LIEN OF THE INSURED MORTGAGE BECAUSE OF THE INABILITY OR FAILURE OF THE INSURED AT DATE OF POLICY, OR THE INABILITY OR FAILURE OF ANY SUBSEQUENT OWNER OF THE INDEBTEDNESS, TO COMPLY WITH APPLICABLE DOING BUSINESS LAWS OF THE STATE IN WHICH THE LAND IS SITUATED. 5 INVALIDITY OR UNENFORCEABILITY OF THE LIEN OF THE INSURED MORTGAGE, OR CLAIM THEREOF, WHICH ARISES OUT OF THE TRANSACTION EVIDENCED BY THE INSURED MORTGAGE AND IS BASED UPON ANY CONSUMER CREDIT PROTECTION OR TRUTH-IN-LENDING LAW. 6. ANY CLAIM, WHICH ARISES OUT OF THE TRANSACTION CREATING THE INTEREST OF THE MORTGAGEE INSURED BY THIS POLICY, BY REASON OF THE OPERATION OF FEDERAL BANKRUPTCY, STATE INSOLVENCY, OR SIMILAR CREDITORS' RIGHTS LAWS, THAT IS BASED ON: (A) THE TRANSACTION CREATING THE ESTATE OF THE INSURED MORTGAGEE BEING DEEMED A FRAUDULENT CONVEYANCE OR FRAUDULENT TRANSFER, OR (B) THE SUBORDINATION OF THE INTEREST OF THE INSURED MORTGAGEE AS A RESULT OF THE APPLICATION OF THE DOCTRINE OF EQUITABLE SUBORDINATION; OR (C) THE TRANSACTION CREATING THE INTEREST OF THE INSURED MORTGAGEE BEING DEEMED A PREFERENTIAL TRANSFER EXCEPT WHERE THE PREFERENTIAL TRANSFER RESULTS FROM THE FAILURE, (I) TO TIMELY RECORD THE INSTRUMENT OF TRANSFER, OR (II) OF SUCH RECORDATION TO IMPART NOTICE TO A PURCHASER FOR VALUE OR A JUDGMENT OR LIEN CREDITOR. 0. TAXES, ASSESSMENTS, COSTS, CHARGES, DAMAGES AND OTHER OBLIGATIONS TO THE GOVERNMENT SECURED BY STATUTORY LIENS THAT BECOME A LIEN ON THE LAND SUBSEQUENT TO DATE OF POLICY, BUT THIS EXCLUSION 9 DOES NOT LIMIT THE COVERAGE OF INSURING PROVISION 34. REV. 1999 STEWART TITLE GUARANTY COMPANY PAGE 6 OF 6 IMPORTANT: This is not a plat or survey. It Is furnished as a eonvenienQa to locate the lan:l indicated hereon with reference to streets ., other land. No liability is assumed by reason of reliance hereon. 29-e-2 Stewart Title Co. 501— 35 T C.A o CO5 61,Ir 5.[ ,� 0/1-030 POR. SE//4 SW//4 SEC. /, T. 4S, R. 4E N L Ali .- PARS, ,.... 76 >J >. 61 6/ 54 53 I f Q lt� 4Q © I � "'• _ _ ��"� � ° . n Ike L- 1 >x 52 O >z LIIY . 66 O 354 64 sa 3 o $s u ? 39 n r II Lot x i 6J O JZ J9 56 OO SO wa4.. R ; ' eJ O ei ♦ I/ /©: © >6 +'i 69 7O ® 51 Se Yi _ —✓ i1 LII6 + a a "',°,'r °°' M.B. 28/99 Desert Pork Estates No. 2 9K 1 f f Tl e>sr I 07 OI rq • ASSESSOR' 5CI RIVERSIDE COUNTY, CALIF 'S FEB 1969 N Sanctity of Contract STEWART TITLE Or CALIFORNIA, INC. Inland Empire Division - Escrow Services 44-350 Monterey Avenue,Palm Desert, CA 92260 (760) 568-1874 Far: (760)568-5479 Date: July 07, 1999 Escrow Officer Betty S . Kirby Escrow Number 29536-BK Property Address : 1841 FARRELL DRIVE PALM SPRINGS, CA 92262 SALE ESCROW INSTRUCTIONS STEWART TITLE OF CALIFORNIA,INC. IS LICENSED BY THE STATE OF CALIFORNIA UNDER TILE DEPARTMENT OF INSURANCE. SECTION I ON OR BEFORE JULY 16, 1999, the undersigned will hand Stewart Title of California, Inc. , (hereinafter referred to as "Escrow Holder" or "you" ) , the funds and/or documents required as follows : JOHN H. MCMURTRY, JR. AND RUBY M. MCMURTRY, Seller (s) herein will hand you a Grant Deed, conveying the described real property to the Buyer as set forth below. THE CITY OF PALM SPRINGS, A MUNICIPAL CORPORATION, Buyer (s) herein, will hand you the sum of $141, 000 . 00 and will cause the purchase price to be paid in accordance with the provisions set forth below: Will hand you prior to close of escrow. . . . . $141, 000 . 00 TOTAL CONSIDERATION OF. . . . . . . . . . . . . $141, 000 . 00 SECTION II You are authorized to obtain beneficiary statements and/or demands on any matter of record or as instructed. Escrow Holder is authorized and instructed to pay all demands required to place title in the condition called for within these instructions . You are authorized to deliver and/or record all documents and disburse all funds when you are in a position to cause to be issued a current form of CLTA Policy of Title Insurance in the amount of the purchase price; covering the following described property in the city of PALM SPRINGS, County of RIVERSIDE, State of California: LOT 56 OF DESERT PARK ESTATES NO . 2 AS SHOWN BY MAP ON FILE IN BOOK 28, PAGE 99 OF MAPS, RECORDS OF RIVERSIDE COUNTY, CALIFORNIA. SHOWING TITLE VESTED IN: CITY OF PALM SPRINGS, A MUNICIPAL CORPORATION Continued on next page Escrow Number: 29536-13K SUBJECT ONLY TO THE FOLLOWING: 1 . All current General and Special taxes for the fiscal_ year 1999/2000, and subsequent years, including reassessments, if any, and including any special district levies or personal property taxes, payment for which are included therein and collected therewith, and improvement bonds assessments, when applicable. 2 . Covenants, conditions, restrictions, reservations, rights of way, easements, and the EXCEPTION OR RESERVATION OF WATER, OIL, GAS, MINERAL, CARBONS, HYDROCARBON OR KINDRED SUBSTANCES ON OR UNDER SAID LAND, now of record, if any. 3 . Any exceptions created or consented to by City, including without limitation, any exceptions arising by reason of City' s possession of or entry on the Property, SECTION III PRORATIONS AND/OR ADJUSTMENTS : Per agreement between buyer and seller, there shall be no proration of real property taxes in this transaction. CLOSING COSTS : Buyer to pay fees and charges incurred in this transaction, including but not limited to, all escrow fees and policy of title insurance premium. Seller agrees to pay outstanding and/or delinquent real property taxes and liens, if any. SECTION IV PRELIMINARY TITLE REPORT APPROVAL: With the execution of these instructions, buyer acknowledges receipt of a copy of the preliminary title report issued by STEWART TITLE OF CALIFORNIA, INC. , under Order No. 507-159786 and approves same, subject to the removal of Items No . 7 through 10 prior to or concurrently with the closing of escrow. THESE INSTRUCTIONS DO NOT AMEND, CANCEL OR SUPERSEDE THAT CERTAIN ACQUISITION OF REAL PROPERTY AGREEMENT DATED JUNE 21, 1999 EXECUTED PRIOR TO THESE INSTRUCTIONS BETWEEN BUYER AND SELLER. ESCROW HOLDER' S ONLY OBLIGATION IS TO FOLLOW THESE INSTRUCTIONS OR AMENDMENTS HERETO AND ESCROW HOLDER IS NOT RESPONSIBLE, LIABLE AND/OR CONCERNED WITH THE PROVISIONS IN ANY OTHER AGREEMENT. GOOD FUNDS : Funds must be submitted to escrow no later than the business day preceding recordation and close of escrow unless otherwise agreed upon. Please remit funds in one of the following manners : (1) Wire funds to Stewart Title of California, Inc . Escrow Department' s Trust Account, or; (2) Deliver to Stewart Title of California, Inc . Escrow Department, a cashier' s check made payable to Stewart Title of California, Inc . EXCEPT FOR FUNDS DEPOSITED BY WIRE TRANSFER, California Insurance Code 12413 . 1 (Chapter 598, Statutes of 1989) prohibits the disbursement of funds until the day funds are made available under the statute . CASHIER' S, TELLER' S OR CERTIFIED checks are generally available on the next business day following deposit . Please be advised that failure to meet one of these requirements may delay the date of recordation (close of escrow) and disbursement of funds . Continued on next page Escrow Number: 29536-13K IF ANY CHECK SUBMITTED TO ESCROW HOLDER IS DISHONORED UPON PRESENTMENT FOR PAYMENT, YOU ARE AUTHORIZED TO NOTIFY ALL PRINCIPALS AND/OR THEIR RESPECTIVE AGENTS OF SUCH NONPAYMENT. SHOULD THE PARTIES HAVE ANY QUESTIONS CONCERNING THE SIGNING OF DOCUMENTS OR THE INTERPRETATION AND LEGALITY OF THESE INSTRUCTIONS, THEY ARE ADVISED TO CONSULT THEIR LEGAL COUNSEL. EACH PARTY SIGNING THESE INSTRUCTIONS HAS READ THE GENERAL PROVISIONS ATTACHED HERETO AND MADE A PART HEREOF AS EXHIBIT 1. EACH PARTY APPROVES, ACCEPTS AND AGREES TO BE BOUND THEREBY. SELLER' S SIGNATURE : JOHN H. MCMURTRY, JR. RUBY M. MCMURTRY 1841 FARRELL DRIVE PALM SPRINGS, CA 92262 BUYER: CITY OF PALM SPRINGS, A MUNICIPAL CORPORATION By: By: P. 0. BOX 2743 PALM SPRINGS, CA 92263-2743 EXHIBIT 1 GENERAL PROVISIONS 1. FUNDS AND PRORATIONS All funds received in this escrow shall be deposited with other escrow funds into a general escrow account or accounts of Escrow Holder, without liability for interest, and may be transferred to any other such general escrow account or accounts. Close of escrow is subject to compliance with California Insurance Code Sections 124131.1, 12413.2 and 12413.5 regarding collected funds. Funds deposited to escrow are insured only to the limit provided by Federal Deposit Insurance Corpora- tion. Escrow Holder will NOT be held responsible for lost interest due to wire delays caused by any bank or the Federal Reserve System, and recommends that all parties make themselves aware of banking regulations with regards to placement of wires. If for any reason, funds are retained or remain in escrow following the close of escrow, you are to deduct therefrom a MONTHLY charge as custodian, of not less than$25.00 per mouth, unless otherwise specified. The parties acknowledge that they have been advised that the financial institutions in which monies in this escrow are being deposited, are paying for certain of Escrow's accounting and computer services. Those services directly benefit the parties which further reduce costs and fees to the escrow. All proration and/or adjustments called for in this escrow shall be made on the basis of a 30 day month at-360 day }ear, unless otherwise intructed in writing. Proration of real property taxes will be made on the basis of the latest available figures provided to Escrow Holder. The phrase close of escrow (COE) as used herein means the date on which instruments/documents are recorded. Disbursements from this escrow will be made by check of Escrow Bolder. Unless otherwise instructed in writing, cliecks will be issued jointly to the parties designated as payees. Signatures (including initials) of principals or their duly author- ized agents on ally documents/instrument and/or instruction pertaining to this escrow indicate approval of same. 2. SPECIAL RECORDINGS If a "SPECIAL RECORDING" is arranged and completed, meaning recording the documents called for in this escrow, at any time other than the standard recording time for title companies, then all parties hereto represent and warrant that during the period of time between the standard recording time and the time the documents are actually recorded pursuant to the "SPECIAL RECORDING", no additional liens, encumbrances, or exceptions to the title whether involunt- ary or voluntary, of any kind or natuye will attach to or be recorded against the subject property, uor will (lie subject pro- )erty be otherwise� transferred,or conveyed. All parties hereby expressly agree to indemnify and hold Escrow Bolder harni- ess front all claims, losses or damages and attorney's fees resulting from any such additional lien, encumbrances, except- ions to title, transfers or conveyances. 3. AUTHORIZATION TO DELIVER If it is necessary, proper or convenient for the consummation of this escrow, Escrow Holdet•is authorized to deposit or have deposited funds or documents, or both, handed to Escrow Holder under these escrow instructions with any duty authorized sub-escrow agent= including, but not limited to, any bank, trust company, title insurance compauy, title company, savings and loan association, or licensed escrow agent, at or before close of escrow in connection with closing this escrow. Any such deposit shall be deemed a deposit under the meaning of these escrow instructions. 4, AUTHORIZATION TO FURNISH COPIES Furnishing copies of any/all escrow instructions, amendments, supplements, preliminary reports, notices of cancellation and closing statements in this escrow to the real estate broker(s), lenders and/or attorney's representing principals to this escrow is authorized. Escrow Holder shall not incur any liability to the parties for delivery of said copies. 5. TIME AND WRITTEN NOTIFICATION Time is of the essence. In the event the conditions of this escrow have not been complied with at the expiration of the time prrovided for herein you are permitted, though not required, to complete the same at the earliest possible date thereafter, o notice, demand or change of instructions shall be of any effect to alter, amend, supplement, or vary the terms of these instructions unless given in writing and signed by all parties affected thereby. 6. CANCELLATION PROVISIONS , Any principal instructing Escrow IIolder to cancel escrow shall file notice of cancellation in Escrow Holder's office in writ- ing and so state the reason for cancellation. Upon receipt of same, Escrow Holder shall prepare cancellation instructions for signatures of the principals and shall forward same to the princippals. Upon receipt of mutually agreeable cancellation in- structions signed by all principal s and after payment of Escrow Iolder's cancellation charges, Escrow Holder is authorized to comply rvtth such instructions and cancel tine escrow. 7. ACTION IN INTERPLEADER OR OTHER COURT OR LEGAL PROCEEDINGS The rincipals hereto expressly agree that Escrow Holder has the absolute right, at its election, to file an action in inter- pleader regaining the principals to answer and litigate their several claims and rights aniong themselves and Escrow Holder is authorized to deposit with the clerk and the court, all documents, instruments and funds held in escrow, In the event such action is filed, lute principals jointly and severally agree to pay Escrow Holder's cancellation charges and costs, expenses and reasonable attorneys fees it is req i ed to expend or incur m suck dnterpleader action, the amount thereof to be fixed and judgment therefor a to be rendered by the court, Upon Filing of such action, Escrow Holder is thereupon fully released and discharged froth all obligations to further perform any duties or obligations otherwise imposed by the terms of this escrow. 8. PERSONAL PROPERTY TAX Escrow IIolder is not responsible for any personal property tax which may be assessed to any former owner of the property that is the subject of this escrow, nor For the corporation or license tax of any corporation as a former owner. No examina- tion or insurance as to the amount of payment of personal taxes is required unless specifically requested. 9. LIMITATION ON DUTY TO INFORM It is agreed by the patties hereto, that so far as Escrow Holder's rights and liabilities are involved, the transaction is an escrow and not any other legal relation and STEWART TITLE OF CALIFORNIA, INC. is an Escrow Holder only on the within expressed terms, and Escrow Holder shall have no responsibility for notifying any of the parties to this escrow of any sale, resale, loan, exchange or other transaction involving any property herein described or of the profit realized by any person, firm or corporation (broker, agent and parties to this and/or other escrow included), in connection therewith, regardless of the fact that such transaction(s) may be handled concurrently by Escrow Holder in this escrow or in another escrow. Page 1 of 4 10. LEGAL ADVICE The parties acknowledge and understand that Escrow Holder is not authorized to practice law, nor give financial advice. The parties are hereby advised to seek legal and financial counsel and advice concerning the effect or these escrow instruct- ions. The parties acknowledge that no representations are made by Escrow Holder about the legal sufficiency, legal conse- quences, financial effect or tax consequences of the within escrow instructions. 11. DISCLOSURE OF CONDITIONS PRECEDENT The parties to this escrow by execution thereof, acknowledge their duty to Escrow lIolder of full disclosure of those matters shall affect the transfer olz subject property and conditions of title (inclusive of real personal and intangible property, which matters may result in a lien against subject property). Disclosure shall include, but is not limited to: water, stock, owners association or maintenance dues, contractual obligations not automatically terminated upon sale, notes, deeds of trust and vendors liens. 12. STATE/FEDERAL CODE NOTIFICATION According to Federal law, the Seller(s), when appplicable, will be required to complete a 1099-5 Worksheet that will be utilized to generate a 1099 reporting statement to the Internal Revenue Service. Pursuant to Stale Law, prior to the close of escrow, Buyer(s) will provide Escrow Holder with a Preliminary Change of Ownership Report. In the event said report is not handed to Escrow Bolder for submission to the County in which subject property is located, upon recording of the Grant Deed, Buyer(s) acknowledge that the applicable fee will be assessed by said County and Escrow Holder shall debit the account of Buyer(s) for same at the close of escrow. You are released from and shall have no liability, obligations or responsibility with respect to (a) withholding of funds pursuant to Section 1445 of the Internal Revenue Code of 1984, "Foreign Investors in Real Property Act" (FIRP'I'A), as amended (b) advising of requirements, (c) determining whether the seller is a foreign person, under such Section, or (d) obtaining a non-foreign affidavit or other exemption from withholding under such Section nor otherwise making any inquiry concerning compliance with such Section by any party to this transaction. IN ACCORDANCE WITH SECTION 18662 AND 18668 OF THE REVENUE AND TAXATION CODE, A BUYER MAY BE REQUIRED TO WITHHOLD AN AMOUNT EQQUAL TO 3-1/3 PERCENT OF THE SALES PRICE IN THE CASE Of, A DISPOSITION OF CALIFORNIA REAL PROPERTY INTEREST, BY EITHER: 1) A SELLER WHO IS AN INDIVIDUAL WITH A LAST KNOWN STREET ADDRESS OUTSIDE OF CALIFORNIA, OR; 2) A CORPORATE SELLER WHICH HAS NO PERMANENT PLACE OF BUSINESS IN CALIFORNIA. THE BUYER MAY BECOME SUBJECT TO A PENALTY FOR FAILURE TO WITHHOLD AN AMOUNT EQUAL TO THE LESSER OF 10 PERCENT OF THE AMOUNT REQUIRED TO BE WITHHELD OR FIVE HUNDRED DOLLARS HOWEVER, NOTWITHSTANDING ANY OTHER PROVISION INCLUDED IN THE CALIFORNIA STATUTES REFERENCED ABOVE, NO BUYER WILL BE REQUIRED TO WITHHOLD ANY AMOUNT OR BE SUBJECT TO PENALTY FOR FAILURE TO WITHHOLD IF: 1)THE SALES PRICE OF THE CALIFORNIA REAL PROPERTY CONVEYED DOES NOT EXCEED $100,000.00, OR; 2) THE SELLER EXECUTES A WRITTEN CERTIFICATE, UNDER THE PENALTY OF PERJURY, CERTIFY- ING TIIAT THE SELLER IS A RESIDENT OF CALIFORNIA, OR IF A CORPORATION, HAS A PERMANENT PLACE OF BUSINESS IN CALIFORNIA, OR; 3)TIIE SELLER WHO IS AN INDIVIDUAL EXECUTES A WRITTEN CERTIFICATE UNDER PENALTY OF PERJURY THAT THE REAL PROPERTY BEING CONVEYED IS TILE SELLER'S PRINCIPAL RESIDENCE (AS DEFINED IN SECTION 1034 OF INTERNAL REVENUE CODE). THE SELLER IS SUBJECT TO PENALTY FOR KNOWINGLY FILING A FRAUDULENT CERTIFICATE FOR THE PURPOSE OF AVOIDING THE WITHHOLDING REQUIREMENT. 13. NO ACTIVITY If there is no written activity by a principal to this escrow within any six-month period after the time limit date as set forth, in the escrow instructions or written extension thereof, Escrow Holder's obligation shall terminate at Escrow Holder's -option. All documents, monies or other items deposited with Escrow Holder shall be returned to the respective parties entitled thereto, less fees and charges herein provided. 14. CAPTIONS AND COUNTERPARTS Captions in these escrow instructions are inserted for convenience of reference only and do not define, describe or limit the scope of the intent of these instructions or any of the terms hereof. These instructions may be executed in counterparts, each of which so executed shall, irrespective of the date of its execution and delivery, be deemed an original, and said count- erparts together shall constitute one and the same instrument. 15. BINDING All terms of these escrow instructions shall be binding upon and inure to the benefit and be enforceable by the parties here- to and their respective legal representatives, successors and assigns. In the event any term, covenant, condition, provision or agreement herein contained is held to be invalid or void by any court of competent jurisdiction, the invalidity of any such term, covenant, condition,provision or agreement shall in no way affect any other term, covenant, condition, provision or agreement herein contained 16. USURY Escrow Holder is not to be concerned with any question of usury in any loan or encumbrance involved in the processing of this escrow and is hereby released of any liability or responsibility therefore. 17. CONFLICTING DEMANDS/INTERPLEADER NO notice, demand or change of instructions shall be of any effect in this escrow unless Riven in writing by all parties affected thereby. If conflicting demands are made in connection with this escrow, Escrow Holder shall have the absolute right to either withhold and stop all proceedings, or file suit in the interpleader and obtain an order from the court requir- ing the parties to interplead their several claims and rights amongst themselves. Page 2 of 4 18. FACSIMILE AND ELECTRONIC MAIL All parties acknowledge that documents and instructions may be transmitted via facsimile (FAX) and/or electronic mail (e-mail). In the event the principals of this transaction, their agents, or assigns, utilize"facsimile (FAX)" transmitted instructions, Escrow Holder may rely and act upon such instructions in the same manner as if original signed instructions were in the possession of Escrow Holder. Any instructions for release of funds will require original signatures prior to said release. 19. DISCRETIONARY TERMINATION At the sole discretion of Escrow lIolder, Escrow Holder may elect to terminate its escrow relationship with the principals to the escrow. Funds and documents will be returned upon mutual instructions of the appropriate parties. 20. PURCHASE AGREEMENT If any form of Purchase agreement or amendment or supplement (collectively "Purchase Agreement") is deposited to this escrow, it is understood that such document shall be effective only as between the parties signing the Purchase Agreement, Escrow Holder's only duty is to comply with the instructions set forth in the escrow instructions and shall not be responsible for interpr n eting or acting o any provision of any Purchase Agreement on which these escrow instructions may be based. Escrow lIolder shall not rely on any knowledge or understanding Escrow Holder may have of any such Purchase Agreement in ascertaining or performing the duties of Escrow Holder. In connection with any loan transaction, Escrow Holder is authorized to deliver a copy of any Purchase Agreement and a copy of all escrow instructions, supplements or amendments to the Lender. 21. ENVIRONMENTAL DISCLOSURE Notwithstanding any actual or other knowledge oil the part of Escrow Holder, the parties agree to release Escrow Holder from any and all liability of any kind or nature and to indemnify any and all liability of any kind or nature and to indem- nify Escrow Holder of any loss, damages, claims,judgments or costs of any kind or nature resulting from or related to the release or discharge of hazardous or toxic wastes on the subject property whether it occurred in the past or present or may occur in the future which release or discharge is in violation of law, in excess of any state and federal standards, permit requirements and/or disclosure requirements existing at this time or which may exist at a future time. The parties represent that they made their own assessment of the condition of the subject property and have not relied on any of your representa- tions in making the assessment. The parties are advised to seek'nrdependent legal and technical environmental expert advise in assessing the risks associated with potential hazardous or toxic wastes. 22. ADDITIONAL DOCUMENTS HANDED TO ESCROW HOLDER Parties agree to hand Escrow'Holder applicable documentation to establish their authority to act. Those documents may include, but shall not be limited to the following: 1 If an individual: Statement of Information 2) If a corporation: A Corporate resolution signed by the Secretary of the Corporation, authorizing the acquisition, encumbrancng (if applicable), or sale of the subject property, and designating the authorized signatories on behalf of the corpporation, together with a copy of the Articles of Incorporation & By-Laws. 3 If a Trust: copy of the Trust Agreement, any amendments thereto and/or a Certificate of Trust. 4; If a General Partnership: An original Statement of Partnership, in recordable form (if not already recorded) to be recorded in the County in which the subject proper tyy is located. A copy of the partnership agreement is also regnested. 5) If a Limited Partnership: The LP-1 form, certified by the Secretary of Slate to record (Toot already recorded) in the county in which tine subject property is located. A copyy of the partnership agreement is also requested. G) If a Joint Venture: The requirements specified 1, Z, and 3 herein will be applicable as it relates to the entities which comprise the Joint Venture. 7) If a Limited Liability Company (LLC): The LLCl certified by the Secretary of State to record (if not already recorded) in the county in which the subject propperty is located. The LLCI must reflect an expiration(late. One person must be named on the LLCI as managing the LLC, or all members must sign. A copy of the operating agreement is required. The parties further acknowledge that in the event the partners of a partnership are individuals, it may be required that each such partner submit a completed and executed Statement of Information. 23. UNCLAIMED FUNDS Notwithstanding the disposition of any other funds as specified or pertaining to this escrow, there may be funds that remain unclaimed such as, but not limited to, sale proceeds, refunds, rebates, or amounts for specified services ("Unclaimed Funds"). STEWART TITLE OF CALIFORNIA, INC. is required to comply with the State of California reporting and notification requirements as regulated by the California State Controller ("Controller"). These requirements necessarily result in 9 i WART TITLE OF CALIFORNIA, INC. incurring administrative costs such as, but not limited to, publication and utilizing personnel to notify the Principals. The Principals understand that it would be impractical and/or costly for STEWART TITLE OF CALIFORNIA, INC. to incur such costs for Unclaimed Funds that are less than$50.00 ("Minimum Amount"). Accordingly, the Princi mis agree to fully waive anyy rigght to claim any Unclaimed Funds below the Minimum Amount, and further permit S�EWART TITLE OF CALTFORNIA, INC. to deposit sane in their own general account(s). With regard to any funds in excess of the Minimum Amount, which shall be reported by STEWART TITLE OF CAL- IFORNIA, INC. to the Controller (Reported Amount"), STEWART TITLE OF CALIFORNIAI INC. shall be entitled to an administrative fee of one percent(1%) of the Reported Amount. The principals recognized this is a reasonable best estimate for administrative costs incurred by STEWART TITLEOF CALIFORNIA, INC. The Principals recognize that it would he impractical or difficult to estimate such costs and fees each time STEWART TITLE OF CALIFORNIA, INC, complies with the aforementioned requirements. If the Principals have any questions regarding the disposition of Unclaimed Fonds, in excess of $50.00, the Principals should contact the Controller or successor agency for the State of California. 24. DESTRUCTION OF RECORDS Escrow Holder is authorized to destroy or otherwise dispose of any and all documents, papers instructions, correspondence and other materials pertaining to this escrow at the expiration of seven (7) years from tine close of escrow or cancellation thereof. Page 3 of 4 THIS AGREEMENT IN ALL 'PARTS APPLIES TO, INURES TO THE BENEFIT OF AND BINDS ALL PARTIES HERETO, TIIEIR IIEIRS, LEGATEES, DEVISEES, ADMINISTRATORS, EXECUTORS, SUCCESSORS AND ASSIGNS, AND WHENEVER THE CONTEXT SO REQUIRES THE MASCULINE GENDER INCLUDES THE FEMININE AND NEUTER, AND THE SINGULAR NUMBER INCLUDES THE PLURAL. THESE INSTRUCTIONS AND ANY OTHER AMENDMENTS MAYBE EXECUTED IN ANY NUMBER OF COUNTERPARTS, EACH OF WHICH SHALL BE CONSIDERED AS AN ORIGINAL AND BE EFFECTIVE AS SUCH. MY/OUR INITIAL(S) HERETO CONSTITUTES INSTRUCTION TO ESCROW HOLDER OF ALL TERMS AND CONDITIONS CONTAINED 1N THIS AND ALL PRECEDING PAGES AND FURTHER SIGNIFIES THAT IIWE HAVE READ AND UNDERSTAND THESE GENERAL PROVISIONS. INITIAL: INITIAL: INITIAL: INITIAL: INITIAL: INITIAL: INITIAL: INITIAL: Page 4 of 4 RESOLUTION NO. OF THE CITY COUNCIL OF THE CITY OF PALM SPRINGS, CALIFORNIA AUTHORIZING THE PURCHASE OF THE MCMURTRY HOME(PARCEL #501-355-003)AND ACCEPTANCE OF THE GRANT DEED, ALL RELATED TO AIRPORT NOISE AND SAFETY. WHEREAS the Palm Springs International Airport has undertaken a property acquisition program funded by the FAA, for noise and safety reasons; and WHEREAS the McMurtry home is one of the properties for which the City has passed a Resolution of Necessity to acquire; and WHEREAS the City has successfully negotiated the purchase of the residence without utilizing its eminent domain powers, NOW THEREFORE BE IT RESOLVED as follows: SECTION 1. That the City Manager is authorized to execute all necessary paperwork to complete the acquisition of the McMurtry home, Assessor's Parcel 4501-335-005, for a price of$141,000, plus all costs, relocation costs and interest buy down costs. SECTION 2. That the City Clerk is hereby authorized to accept the Grant Deed on behalf of the City. AYES: NOES: ABSENT: ATTEST: CITY OF PALM SPRINGS, CALIFORNIA By City Clerk City Manager REVIEWED&APPROVED