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HomeMy WebLinkAboutA4396 - MACIAS PROPERTY PURCHASE EMINENT DOMAIN Jesse 6 Karen Macias Acq of Real Estate Agr AGREEMENT #4396 M06918, 9-5-01 Palm Springs Regional Airport Assessor's Parcel No. 680-073-006 ACQUISITION OF REAL PROPERTY AGREEMENT THIS AGREEMENT is entered into on this 0J day of 2001, by and between the CITY OF PALM SPRINGS, A MUNICIPAL CORPO TION (hereinafter called "City"), and JESSE MACIAS AND KAREN MACIAS, HUSBAND AND WIFE AS JOINT TENANTS(hereinafter called "Grantor"), for acquisition by City of certain real property interests 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 interests; 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 interests 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. 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 following described Property (hereinafter call "Property") LOT 5 OF AMENDED MAP OF VAL VISTA TRACT, AS SHOWN BY MAP ON FILE IN BOOK 21 PAGES(S) 100, RECORDS OF RIVERSIDE COUNTY, CALIFORNIA. nm:y,1998 P10vp"wN-POACLIEMSIPnOn STnn,a1P3P 1`N II1AcyuivnoiilP3 PHA59pAM.ui,taVAymenrvnt lnp 2. PURCHASE PRICE The total purchase price, payable in cash through escrow shall be the sum of EIGHTY SEVEN THOUSAND DOLLARS($87,000.00). Grantor hereby acknowledges that the purchase price is a total settlement which includes any and all claims Grantor may be entitled to by reason of the investigations,planning, precondemnation activity, and acquisition of the Property by City, including, but not limited to, value of real property rights, severance damages, value of improvements pertaining to the Property, if any, compensation for loss of goodwill, if any, precondemnation damages, interest,costs, disbursements and expenses incurred in connection with the acquisition of the subject property and improvements pertaining to the Property, if any, subsequent removal of any items retained by Grantor, and the establishment, construction, operation, and maintenance of the project for which the Property is being acquired by the City. Grantor hereby waives and releases City and its officers, employees and agents from and against any and all claims, actions demands and suits relating to any of the foregoing. This release extends to all such claims which now exist or which may arise in the future, whether or not such claims are known to Grantor, and Grantor hereby expressly waives his rights under California Civil Code Section 1542 which provides as follows: "1542, General Release; extent a general release does not extend to claims which the creditor does not know or suspect to exist in his favor at the time of executing the release, which if known by him must have materially affected his settlement with the debtor." Payment under this Agreement shall be made after City obtains a standard CLTA policy of title insurance showing fee simple marketable title as identified in Paragraph 3 below. 3. ESCROW AND TITLE INSURANCE City agrees to open an escrow in accordance with this Agreement at Stewart Title of California- Escrow Department, Palm Desert, California. City agrees to pay all usual fees, charges and costs which arise in the escrow. When Escrow Holder holds for City the Grant Deed in favor of City executed and acknowledged by Grantor covering the Property, Escrow Holder shall cause to be issued and delivered to City, as of the Closing Date, a CLTA standard coverage policy of title insurance or, upon City's request therefor, an ALTA standard or extended coverage policy of title insurance ("Title Policy"), issued by Stewart Title, with liability in the amount of the purchase price, covering the Property and showing title vested in City free of encumbrances, except: (a) All non-delinquent general and special real property taxes and assessments for the current fiscal year; 5.ne 2,1998 F\OverLud-MCLIENT9\Po1111 9prin_vs\PSP PH II\Aupnnnion\PS PHA4GII\MuJm\Agrceniwn Inn (b) The standard printed exceptions and exclusions contained in the CLTA or ALTA form policy; (c) Any exceptions created or consented to in writing by City, including without limitation, any exceptions arising by reason of City's possession of or entry on the Property. City agrees to pay the premium charged therefor. 4. INDEMNIFICATION FOR UNRECORDED INTERESTS Upon title vesting in City, Grantor warrants that there are no unrecorded encumbrances (including but not limited to liens, leases, easements, or licenses) on all or any portion of the Property, and Grantor agrees to hold the City harmless, defend, and indemnify the City for any and all of City's losses and expenses, including reasonable attorney fees, occasioned by reason of any such encumbrance of said Property. 5. ACQUISITION BY STIPULATED JUDGMENT IN LIEU OF DEED In the event Grantor is unable to deliver title in a reasonable time in accordance with the terms of this Agreement, the City may file an action in eminent domain to pursue the acquisition of the Property. Grantor agrees to waive all claims and defenses to such an action and agrees that this contract shall constitute a stipulation which may be filed in such action as final and conclusive evidence of just compensation for the acquisition, including all of the items provided in Chapter 9, Title 7 of the Code of Civil Procedure commencing with Section 1263.010. 6. CONSENT TO DISMISSAL OF CONDEMNATION Grantor hereby agrees and consents to the dismissal of any eminent domain action which may be filed by the City to acquire said Property and waives any and all claim to money that may be deposited in the Superior Court in such an action, and any claim for any compensation for the City's acquisition of the Property, apart from payment of the purchase price, and any claim to any other damage, litigation cost or expense, attorney fees or fees of appraisers, engineers, or other experts, or any other damage or claim to payment. 7. CONVEYANCE OF INTEREST Grantor agrees to convey by Grant Deed to City title in and to said Property as described in Section 1 of this Agreement. tmre 2,M8 P\Nv, ud-MCLIGNTS\Pnlm Sp,inpe\PSP PH 111Auininivon\PS PtIASCII\Mx:.i::e\Apmement f111 8. HAZARDOUS MATERIALS It is understood that the Property does not appear to contain hazardous substances (as that tern is defined under California Health and Safety Code Section 33459(b) including but not limited to gasoline/oil storage tanks, fertilizer or pesticide storage tanks, or any contaminant ("Contamination"). In the event that any facts or circumstances arise which indicate the presence of such contamination, the City reserves the right to rescind and revoke this Agreement at any time prior to close of escrow. Further, in the event the City discovers such soil contamination after it acquires the Property, the City reserves all rights and remedies it may have against Grantor and all prior owners to seek damages or other remedies in connection with any remediation or other obligations the City incurs as a result of the contamination, as may be permitted or authorized by any law, including but not limited to CERCLA (42 U.S.C. §9601 et seq.), RCRA (42 U.S.C. §6901 et seq.), the Hazardous Waste Control Law (California Health & Safety Code Section 25100, et seq.), the Porter Cologne Act(California Water Code Section 13000 et seq.) California Health&Safety Code Sections 25280 et seq. and 33459 et seq., and the provisions of Proposition 65. 9. POSSESSION OF PROPERTY It is agreed and confirmed by the parties hereto that notwithstanding other provisions in this Agreement, the right of possession and use of the Property by the City, including the right to remove and dispose of improvements, shall commence on the close of escrow controlling this transaction. 10. COUNTERPARTS This Agreement 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 all such counterparts together shall constitute one and the same instrument. 11. ATTORNEYS' FEES In the event any legal action is brought to enforce the terms of this Agreement or to recover damages for its breach, the prevailing party shall be entitled to reasonable attorneys' fees therein as well as attorney's fees incurred in enforcing any judgement pertaining thereto. rum 2.1998 _4_ rA0veaane-PMCL1ENTMPalni SPrh y%WSn PH HhAmryisitioikM PHASEMM-as\Agnenmm.fnn 12. NOTICES Any notices or documents to be mailed or delivered shall be addressed to or delivered as follows: Grantor: Jesse Macias Karen Macias 360 Peterson Rd. Rancho Mirage, CA 92270 City: City of Palm Springs 3400 E. Taquitz Canyon Way Palm Springs, CA 92263 Attn: Al Smoot, Director of Transportation 13. BINDING ON HEIRS AND ASSIGNS The terms, conditions, covenants and agreements set forth herein shall apply to and bind the heirs, executors, administrators, successors and assigns of the parties hereto. 14. ENTIRE AGREEMENT This Agreement contains the entire agreement between the parties, and neither party relies upon any warranty, promise, representation, or agreement not contained in writing herein. This agreement may only be amended in writing, by instrument signed by both parties. 15. TIME OF THE ESSENCE Time is of the essence of this agreement and each party shall promptly execute all documents necessary to effectuate the intent herein and shall perform in strict accordance with each of the herein above provisions. nm"2,1998 P:\ .,Wid-MCLIENTS\Pdm SPnup'\PSP PII II\Auyunninn\PS PIIASEII\Magxn\AprCC:nenl dmi 16. NO WAIVER OF CONDITIONS OF APPROVAL Nothing in this agreement shall be construed as a waiver of any of the conditions of any approval granted or adopted in connection with the property or any larger parcel or parcels of land of which the property is a part, including, but not limited to, any condition imposing an obligation to reimburse the City or others for the costs of construction, operations, maintenance, or right of way for public improvements nor shall anything in this Agreement affect any assessment, special assessment, tax, user charge, or other fee or charge imposed by the city or any other public entity. a.19s _6- F\O—UH-PMCUENTMNI.i SN',.,PSP PH I6AcipkiminWB PHASEIAMn-IAgnvminx Inn IN WITNESS WHEREOF, the parties have executed this Agreement the day and year first written above. GRANTOR: CITY: Jesse and Karen Macias CITY OF PALM SPRINGS, A MUNICIPAL CORPORATION < esse Macias Y' en Macias QByL� ATTEST: City Clerk APPROVED AS TO FORM: MLL— City Attorney RECOMMENDED FOR APPROVAL: \v S4j -E_",n. -- _-�I.�Gj lU nmr 2,1999 -7- LMVV-v,i ( wlJ ' F.\Oacd:uW-PD\CLIENTS\P',ihn SpnnFa\PSP PH II\Ac4unninn\PS PHASFII\M1Uu:n\Apreenui6fm� �� Ly EXHIBIT A Legal Description LOT 5 OF AMENDED MAP OF VAL VISTA TRACT, AS SHOWN BY MAP ON FILE IN BOOK 21 PAGES(S) 100, RECORDS OF RIVERSIDE COUNTY, CALIFORNIA. mne 2,1999 O_ FZ,MhnN-PDTLIENTS\Pxlin S,11111 PSP PH II\AcgnuieonlPS PHASEII\h1.Lins\A—nin0.fnn O ACQUIRING AGENT'S CERTIFICATION I.The attached acquisition contract embodies all of the considerations agreed upon between the undersigned and the property owner. 2.The attached acquisition contract was obtained without coercion, promises other than those shown in the contract, or threats of any kind whatsoever by or to either party. 3.I have no direct or indirect present or contemplated future personal interest in the property being acquired or in any way benefit from the acquisition of subject property. By: Acquiring Agent Date: Sanctity of Contract . G STEWART TITLE OF CALIFORNIA, INC. Inland Empire Division - Escrow Services 44-350 Monterey Avenue,Palm Desert, CA 92260 %�14 (760)568-1874 Fax: (760)568-5479 www.Stsales.con. 1 �11 r '7 August 16, 2001 ,���/1 CITY OF PALM SPRINGS a Municipal Corporation 3400 E. Taquitz Canyon Way ' ' Palm Springs, CA 92263 � ATTN: AL SMOOT, director of Transportation ,, ; r, RE : Escrow Number 530044973 �F c Property Address : 4440 E. Calle De Carlos �V147- Palm Springs, CA 92264 �� w 'ON 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 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) (X) ESCROW INSTRUCTIONS (X) PRELIMINARY CHANGE OF OWNERSHIP REPORT (X) ACQUISITION AGREEMENT (X) PRELIMINARY TITLE REPORT APPROVAL We are enclosing the following for your records : (X) PRELIMINARY REPORT Your Realtor, , and 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, STEWART TITLE OF CALIFORNIA, INC. BETTY KI6TB ESCROWj OFFICER BETTY S.KIRBY Escrow Manager I enC108llreS Emadrr— bkir6y@s[ewart.com DD 5'anarity'y C'nntract STEWART TITLE OF CALIFORNIA,INC.•INLAND EMPIRE DIVISION (800)266-1874 (760)568-1874 Fax:(760)569-5479 44-350 Monterey Avenue Palm Desert,California 92260 F sanctity of Contract STEWART TITLE OF CALIFORNIA, INC. Inland Empire Division - Escrow Services 44-350 Monterey Avenue,Palm Desert, CA 92260 (760) 568-1874 Pax: (760)568-5479 www.stsales.com Date: August 07, 2001 Escrow Officer BETTY KIRBY Escrow Number 530044973 Property Address : 4440 E. Calle De Carlos Palm Springs, CA 92264 SALE ESCROW INSTRUCTIONS STEWART TITLE OF CALIFORNIA, INC. IS LICENSED BY THE STATE OF CALIFORNIA UNDER THE DEPARTMENT Or INSURANCE LICENSE NO. 388. Section I On or before September 7 , 2001 , the undersigned (herein "Seller (s) and "Buyer (s) " ) will hand Stewart Title of California, Inc . , (herein "Escrow Holder" ) , the funds and/or documents required as follows : JESSE MACIAS and KAREN MACIAS Seller (s) herein will hand you a Grant Deed, conveying the described real property to the Buyer as set forth below. CITY OF PALM SPRINGS a Municipal Corporation a Municipal Corporation Buyer (s) herein, will cause the purchase price to he paid in accordance with the provisions set forth below: Will hand you prior to close of escrow. . . . . $87 , 000 . 00 Total Consideration of . . . . . . . . . . . . . $87 , 000 . 00 Section II Escrow Holder is 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 . Escrow Holder is 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 , or ALTA at buyer' s option, 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 5 of Amended Map of Val Vista Tract , as shown by map on file in Bobk 21 Page 100 of maps, records of Riverside County. As a matter of information only between Seller and Buyer, the address of the subject property is commonly known as : 4440 E . Calle De Carlos Palm Springs, CA 92264 Showing title vested in: CITY OF PALM SPRINGS a Municipal Corporation lContinued on next page Escrow Number : 530044973 Subject only to the following : 1 . General and special real estate taxes for the current fiscal year, not delinquent; taxes for the ensuing year, a lien not payable; and the lien of community facility or assessment districts , if any, affecting said land. 2 . The lien of supplemental taxes assessed at close of escrow under Chapter 3 . 5 of California Revenue & Taxation Code by reason of Buyer' s within purchase of subject property. 3 . 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. 4 . Any matters of exception approved by Buyer. Section III In accordance with the manner specified under the "General Provisions" attached hereto, you are authorized and instructed to adjust or prorate the following, to date of recording. (X) Real Property Tax (based on latest available tax bills) Upon close of escrow, Escrow Holder is authorized and instructed to charge our respective accounts the costs attributable to each, including, but not limited to the following as indicated below: a) The Seller shall pay only those costs associated with conveying title in the manner called for herein, which may include reconveyance fees, document preparation, recording fees, payoff handling fee, special messenger and/or overnight mail fee (s) , and notary fees, if applicable . b) The Buyer shall pay all costs in connection with this escrow including the costs of the Policy of Title Insurance, escrow fee, endorsement fees, as required, recording fees, document preparation, as required, special messenger and/or overnight mail fee (s) , notary fees, if applicable . Section IV a) Buyer acknowledges receipt of the Preliminary Title Report issued by Stewart Title, Order No. 530044973 , dated July 20 , 2001 . Items A-D and 1-5 are approved to show in the Policy of Title Insurance . Remaining items shall be removed prior to or at close of escrow. Section V 1 . This escrow is a direct result of, and intended to consummate, that certain Acquisition of Real Property Agreement between the parties dated August 2 , 2001 and is not intended to modify or amend same . Section VI Continued on next page Escrow Number: 530044973 Each party signing these instructions has read, understands, and accepts the General Provisions attached hereto as Exhibit i . Seller : JESSE MACIAS KAREN MACIAS Buyer: CITY OF PALM SPRINGS a Municipal Corporation By: authorized signer By: authorized signer EXHIBIT 1 • GENERAL PROVISIONS 1. FUNDS AND PRORATIONS All funds received in this escrow shall be deposited with other escrow fluids 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 Iusm-ance 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 month, 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 prorations and/or adjustments called for in this escrow shall be made on the basis of a 30 day month or 360 day year, unless otherwise instructed in writing. Proration of real property taxes including supplemental 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 oil which instruments/documents are recorded. Disbursements from this escrow will be made by check of Escrow Holder. Unless otherwise instructed in writing, checks will be issued jointly to the parties designated as payees. Signatures (including initials) of principals or their duly author- ized agents of any docunentshastrument 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 dining the period of time between the standard recording line and tine 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 nature will attach to or be recorded against the subject property, nor will the subject pro- perty be otherwise transferred or conveyed. All parties hereby expressly agree to indemnify and hold Escrow Holder harnn- less from all claims, losses or damages and attorney's fees resulting from any such additional liens, 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 Holder is authorized to de posit or have de noshed funds or documents, or both, handed to Escrow Holder under these escrow instructions with any duly authorized surow agent, including, but not limited to, any bank, trust company, title insurance company, title company, savings and loan association, or licensed escrow agent, at or before close or escrow un connection with closing this escrow. Any such deposit shall be deemed a deposit under the meaning of these escrow instructions. 4. AUTIORIZATION TO FURNISII COPIES Furnishing copies or 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 attorneys representing principals to this escrow is authorized. Escrow Holder shall not incur any liability to tiro 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 pprovided for herein you are permitted, though not required, to complete the same at the earliest possible date thereafter. No 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. G. CANCELLATION PROVISIONS Any principal instructing Escrow holder 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 principals. Upon receipt of mutuall� agreeable cancellation in- structions signed by all principals and after payment of Escrow Holder's cancellation charges, scrow Holder is authorized to comply with such instructions and cancel the escrow. 7. ACTION IN INTERPLEADER OR OTHER COURT OR LEGAL PROCEEDINGS The principals hereto expressly agree that Escrow holder has the absolute right, at its election, to file an action in inter- Pleader requiring the principals to answer and litigate their several claims and rights among themselves and Escrow Molder ns authorized to deposit with the clerk and the court, all documents, instruments and funds held in escrow. In the event such action is filed, the principals jointly and severally agree to pay Escrow Holder's cancellation charges and costs, expenses and reasonable attorneys fees it is required to expend or inem insuch interpleader action, the amount thereof to be fixed and ,judgment therefore to be rendered by the court. Upon filing or suck action, Escrow Holder is thereupon fully released and discharged from all obligations to further perform any duties or obligations otherwise imposed by the terms of this escrow. 8. PERSONAL PROPERTY TAX Escrow Holder is not responsible for any personal property tax which may be assessed to any former owner of the property Chat 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 parties 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 extpressed 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, a eat and parties to this and/or other escrow included), in connection therewith, regardless of the fact that such transaclion(ss may be handled concurrently by Escrow Holder in this escrow or in another escrow. Page 1 of 4 10. LEGAL ADVICE Tine 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 of these escrow instruct- ions. The parties acknowledge that no representations are made by Escrow Holder about the legal sufficiency, legal colse- 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 Holder of full disclosure of those matters shall affect the transfer or 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-S Worksheet that will be utilized to generate a 1099 reporting statement to tine Internal Revenue Service. Pursuant to State Law, prior to the close of escrow, Buyer(s) will provide Escrow Holder with a Preliminary Change of Ownership Report. fin the event said report is not handed to Escrow Holder for submission to the County in which subject Pro erty is located, upon recording of the Grant Deed, Buyer(s) acknowledge that the applicable fee will be assessed by sau11 County and Escrow Holder shall debit the account of Buyer(s) for same at the close or 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" (FIRP1'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 EQUAL TO 3-1/3 PERCENT OF THE SALES PRICE IN THE CASE OF A DISPOSITION OF CALIFORNIA REAL PROPERTY INTEREST, BY EITIIER: 1) A SELLER WHO IS AN INDIVIDUAL WITH A LAST KNOWN STREET ADDRESS OUTSIDE OF CALIFORNIA, OR; 2) A CORPORATE SELLER WIIICH IIAS 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 ($500.00). 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: SAL PRICE OF THE, O THE R; L THE SELLER EXECUTES ALIFORNIA REAL WRITT N CERTIFICOATE,TUNDERVT;ED PEES NOT EXCEED $100,000.00, NALTY OF PERJURY, CERTIFY- ING THAT THE SELLER IS A RESIDENT OF CALIFORNIA, OR IF A CORPORATION, HAS A PERMANENT PLACE OF BUSINESS IN CALIFORNIA, OR; 3) THE SELLER WHO IS AN INDIVIDUAL EXECUTES A WRITTEN CERTIFICATE UNDER PENALTY OF PERJURY THAT TIIE REAL PROPERTY BEING CONVEYED IS THE 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 TIIE 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 terns hereof. These instructions may be executed in counterparts, each of which so executed shall, irrespective of the dale 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 tine 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, wovision or agreement shall in no way affect any other term, covenant, condition, provision or agreement herein contained'. 16. USURY Escrow IIolder 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 or instructions shall be of any effect in this escrow unless given in writing by all parties affected thereby. If conflicting demands are made in connection with this escrow, Escrow IIolder 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. 18. FACSIMILE AND ELECTRONIC MAIL All parties aclutowledge 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 msll netions, 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. Page 2 of 4 19. DISCRETIONARY TERMINATION At the sole discretion of Escrow IIolder, 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 interpreting or acting oil any any provision of any Purchase Agreement o which these escrow instructions may be based. Escrow Molder 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 on the part of Escrow IIolder•, 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 indenr ❑ify 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 stale 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 or your mpresenta- tions in malting the assessment. The parties are advised to seep independent 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) Ira corporation,. A Corporate resolution signed by the Secretary of the Corporation, authorizing the acquisition, encumbrancing (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)corp a Trust: copy of the Trust Agreement, any amendments thereto and/or a Certificate or 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 properlyy is located. A copy of the partnership agreement is also requested. 5) If a Limited Partnership: The LP-1 form, cerd ied by the Secretaryy or State to record (if not already recorded) in the county in which the subject properly is located. A copy or the I)artnerslui n agreement is also requested. 6) If a Joint Venture: "The requirements specified 1, 2, and 3 luerein will be applicable as it relates to the entities which comprise the Joint Venture. 7) If a Limited Liability Coal)any (LLC): The LLCI certified by the Secretary of State to record (if not already recorded) in the county in which the sugjcct pro11erty is located. The LLCI roust reflect an expiration date. One person must be named on the LLCI as managing the LTC, or all members must sign. A copy or 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. DESTRUCTION Or RECORDS Escrow Holder is authorized to destroy or otherwise dispose of any and all documents, pappers, instructions, correspondence and other materials pertaining to this escrow at the expiration of seven (7) years from tlne close of escrow or cancellation thereof. 24. GOOD FUNDS California Insurance Code Section 12413.1 prohibits a title insurance company, controlled escrow company, or underwritten title company from disbursing funds from any escrow or subescrow account, (except for funds deposited by wire transfer or electronic payment) until the day those funds are made available to the depositor pursuant to Part 229 of Title 12 of the Code of Federal Regulations, (reg.ce). Items such as cashier, certified or tellers checks may be available for disbursement on the business day following the business day of deposit, however other forms of deposit may cause extended delays in closing the escrow or sub-escrow. STEWART TITLE OF CALIFORNIA, INC. will not be responsible for accruals of interest or other charges resulting from compliance with the disbursement restrictions imposed by state law. If any check submitted to Escrow Holder is dishonored upon presentment for payment, you are authorized to notify all prin- cipals and/or their respective agents of such nonpayment. 25. CHANGE IN OWNERSHIP REPORT All parties are aware that a "Preliminary Change in Ownership Form" is to be filed with the office or the County Assessor upon recordation of all transfer documents involving real property. As an accommodation only, Escrow Holder shall provide necessary forms to the purchaser herein and in the event the completed form is deposited into escrow prior to close, Escrow IIolder shall deliver same to County Assessor concurrently with recordation of the documents being recorded in this transaction. 26. APPLICATION OF PAYOFF FUNDS Should a check or wire be deemed unacceptable by lenders, creditors, lien holders or beneficiaries of Deeds or Trust, Escrow IIolder is authorized to act on our behalf in requesting the funds, as well as any balance in an impound account, be applied towards the balance due. 27. INDEMNITY FOR ATTORNEY'S FEES AND COSTS In the event suit is brought by any party or patties to this escrow, including Stewart Title of California,Inc., as against each other or others, including Stewart Title or California, Inc., which results in a dismissal of or judgment in favor of Stewart Title of California, Inc., the parties hereto agree to hold harmless, reimburse and indemnify Stewart Title of California, Inc., its officers and employees, from any loss, expenses, costs and attorney's fees incurred. THIS AGREEMENT 1N ALL PARTS APPLIES TO, INURES TO THE BENEFIT OF, AND BINDS ALL PARTIES HERETO, THEIR HEIRS, LEGATEES, DEVISEES, ADMINISTRATORS EXECUTORS, SUCCESSORS AND ASSIGNS, AND WHENEVER THE CONTEXT SO REQUIRES THE, MASCULINE GENDER INCLUDES THE Page 3 of 4 FEMININE AND NEUTER, AND THE SINGULAR NUMBER INCLUDES THE PLURAL. TIIESE INSTRUCTIONS AND ANY OTHER AMENDMENTS MAY BE EXECUTED IN ANY NUMBER OF COUNTERPARTS, EACH OF WHICH SHALL BE CONSIDERED AS AN ORIGINAL AND 13E EFFECTIVE AS SUCH. MY/OUR INITIAL(S) HERETO CONSTITUTES INSTRUCTION TO ESCROW HOLDER OF ALL TERMS AND CONDITIONS CONTAINED IN TINS AND ALL PRECEDING PAGES AND FURTHER SIGNIFIES TIIAT I/WE HAVE READ AND UNDERSTAND THE SE GENERAL PROVISIONS. INITIAL: INITIAL: INITIAL: INTIAL: Page 4 of 4 Stewart Title Guaranty Company, Stewart Title Insurance Compauy, Stewart Title of California, hic. Privacy Policy Notice PURPOSE OF THIS NOTICE Title V of the Grarnm-Leach-Bliley Act (GLBA) generally prohibits any financial institution, directly or through its affiliates, from sharing nonpublic personal information about you with nonaffiliated third party unless the institution provides you with a notice of its privacy policies and practices, such as the type of information that it collects about you and the catagories of persons or entities to whom it may be disclosed. In compliance with the GLBA, we are providing you with (his document, which notifies you of the privacy policies and practices of Stewart Title of California, Inc. We may collect nonpublic personal information about you from the following sources: • Information we receive from you, such as on applications or other forms. * Information about your transactions we secure from our files, or from our affiliates or others. * Information we receive from a consumer reporting agency. * Information that we receive from others involved in your transaction, such as the real estate agent or lender. Unless it is specifically stated otherwise in an amended Privacy Policy Notice, no additional nonpublic personal information will be collected about you. We may disclose any of the above information that we collect about our customers or former customers to our affiliates or to nonaffiliates third parties permitted by law. We also may disclose this information about our customers or former customers to the following types of nonaffiliated companies that perform marketing services on our behalf or with whom we have joint marketing agreements: * Financial service providers such as companies engaged in banking, consumer finance, securities and insurance. * Non-financial companies such as envelope stuffers and fulfillment service providers. WE DO NOT DISCLOSE ANY NONPUBLIC PERSONAL INFORMATION ABOUT YOU WITH ANYONE FOR ANY PURPOSE THAT IS NOT SPECIFICALLY PERMITTED BY LAW. We restrict access to nonpublic personal information about you to those employees who need to know that information in order to provide products or services to you. We maintain physical, electronic, and procedural safeguards that comply with federal regulations to guard your nonpublic personal information. ti Sanctity of Contract STEWART TITLE OF CALIFORNIA, INC. , INLAND EMPIRE DIVISION 3403 TENTH STREET, SUITE 400 RIVERSIDE, CA 92501 (909) 276-2700 www. stsales .com MEMBER CALIFORNIA LAND TITLE ASSOCIATION PRELIMINARY REPORT STEWART TITLE ESCROW 44-350 MONTEREY AVENUE SUITE 150-123 PALM DESERT, CA 92260 Attn: BETTY KIRBY Order Number: 507185892 Your Reference: 530044973 Property Address: 4440 CALLE DE CARLOS, PALM SPRINGS, CA In response to the above referenced application for a Policy of Title Insurance, Stewart Title of California, Inc. 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 referenced to as an Exception on Schedule B 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 of said policy or policies are set forth in the attached list. 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 thereto) 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 cotmnitment should be requested. Dated as of July 20, 2001 at 7:30 A.M. Print date: August 14, 2001 ROBERT S. KIRSCHKE, Title Officer (909) 276-2700 Fax: (909)276-8293 • • 507185892 PRELIMINARY REPORT The form of Policy of Title Insurance contemplated by this report is : California Land Title Association Standard Coverage Policy SCHEDULE A The 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: JESSE MACIAS AND KAREN MACIAS, HUSBAND AND WIFE AS JOINT TENANTS Continued on next page -1- ' 507185892 LEGAL DESCRIPTION The land referred to herein is situated in the State of California, County of Riverside, City of PALM SPRINGS, described as follows : LOT 5 OF AMENDED MAP OF VAL VISTA TRACT, AS SHOWN BY MAP ON FILE IN BOOK 21 PAGE (S) 100 , OF MAPS, RECORDS OF RIVERSIDE COUNTY, CALIFORNIA. End of Legal Description Continued on next page -2- • 507185892 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 2000-2001 , A LIEN NOT YET DUE AND PAYABLE . B. 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. C. 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 . D . 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 . THE INSTALLMENTS THEREUNDER BEING PAYABLE ANNUALLY WITH THE REAL PROPERTY TAXES . 1 . WATER RIGHTS, CLAIMS OR TITLE TO WATER, WHETHER OR NOT SHOWN BY THE PUBLIC RECORDS . 2 . RIGHTS OF THE PUBLIC IN AND TO ANY PORTION OF SAID LAND, LYING WITHIN ANY LAWFUL ESTABLISHED STREETS, ROADS , OR HIGHWAYS . 3 . AN EASEMENT FOR PUBLIC UTILITIES, AND INCIDENTAL PURPOSES, AS SHOWN ON THE MAP OF SAID TRACT OR PARCEL. SAID EASEMENT IS DESCRIBED AS FOLLOWS : OVER THE NORTHERLY 5 FEET OF SAID LAND. 4 . COVENANTS, CONDITIONS, AND RESTRICTIONS AS SET FORTH IN A DECLARATION OF RESTRICTIONS RECORDED APRIL 2 , 1947 IN BOOK 826 PAGE 325 OF OFFICIAL RECORDS, WHICH PROVIDE, AMONG OTHER THINGS, THAT A VIOLATION THEREOF SHALL NOT DEFEAT OR RENDER INVALID THE LIEN OF ANY MORTGAGE OR DEED OF TRUST MADE IN GOOD FAITH AND FOR VALUE . Continued on next page -3- • 507185892 SAID COVENANTS, CONDITIONS AND RESTRICTIONS WERE MODIFIED BY INSTRUMENT (S) RECORDED MARCH 24, 1948 IN BOOK 895 PAGE 594 C.'' OFFICIAL RECORDS . AN EASEMENT FOR UTILITY INSTALLATION, MAINTENANCE AND INCIDENTAL PURPOSES, AS SET FORTH IN THE INSTRUMENT ABOVE MENTIONED, LOCATED WITHIN 3 FEET OF THE BOUNDARY LINES OF SAID LAND. 5 . AN EASEMENT FOR AERIAL AND/OR UNDERGROUND ELECTRIC OR COMMUNICATION STRUCTURES, AND INCIDENTAL PURPOSES, IN FAVOR OF CALIFORNIA ELECTRIC POWER COMPANY, A CORPORATION, IN INSTRUMENT RECORDED AUGUST 8, 1947 IN BOOK 865 PAGE 26 OF OFFICIAL RECORDS . SAID EASEMENT IS DESCRIBED AS FOLLOWS : OVER, ALONG, ACROSS OR BENEATH ALL STREETS, ALLEYS, HIGHWAYS, AND PUBLIC PLACES AND ALL DIVISION PROPERTY LINES (EXCEPT SUCH LINES AS COINCIDE WITH BOUNDARY LINES OF STREETS AND ALLEYS) , AS SHOWN ON THE MAP OF SAID TRACT. 6 . A DEED OF TRUST TO SECURE AN INDEBTEDNESS OF THE AMOUNT STATED HEREIN AND ANY OTHER AMOUNTS PAYABLE UNDER THE TERMS THEREOF, RECORDED APRIL 22 , 1986 AS INSTRUMENT NO. 91262 OF OFFICIAL RECORDS : DATED: APRIL 14 , 1986 TRUSTOR: JESSE MACIAS AND KAREN MACIAS, HUSBAND AND WIFE TRUSTEE : CALIFORNIA MORTGAGE SERVICE, A CALIFORNIA CORPORATION BENEFICIARY: RNG MORTGAGE SERVICE, A CALIFORNIA CORPORATION AMOUNT : $52 , 989 . 00 THE TRUSTEE IN SAID DEED OF TRUST WAS SUBSTITUTED BY AN INSTRUMENT RECORDED JUNE 23 , 1995 AS INSTRUMENT NO. 202496 OF OFFICIAL RECORDS . NEW TRUSTEE : TITLE RECON TRACKING, A CALIFORNIA CORPORATION THE BENEFICIAL INTEREST OF RECORD UNDER SAID DEED OF TRUST HAS BEEN ASSIGNED TO MIDFIRST BANK, STATE SAVINGS BANK, AN OKLAHOMA CORPORATION, IN INSTRUMENT RECORDED JUNE 23 , 1995 AS INSTRUMENT NO . 202496 OF OFFICIAL RECORDS, AND BY MESNE ASSIGNMENTS OF RECORD. 7 . MATTERS WHICH MAY AFFECT THE TITLE UNLESS ELIMINATED BY A STATEMENT OF IDENTITY FROM THE FOLLOWING: ALL PARTIES END OF EXCEPTIONS Typist Initials : AJ Print date : August 14 , 2001 Continued on next page -4- • 507185892 NOTES INFORMATION NOTES : 1 . BASIC RATE 2 . AN INSPECTION OF SAID LAND DISCLOSES IMPROVEMENTS THEREON, DESIGNATED AS 4440 CALLE DE CARLOS, 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 2000-2001 : TOTAL AMOUNT: $340 . 04 FIRST INSTALLMENT : $170 . 02 SECOND INSTALLMENT: $170 . 02 CODE AND PARCEL NO: 011-060/680-073-006-2 EXEMPTION: $7 , 000 . 00 Continued on next page -5- 507185892 CALIFORNIA "GOOD FUNDS" LAW California Insurance Code Section 12413 . 1 regulates the disbursement of escrow and sub-escrow funds by title companies . Funds received by STEWART TITLE OF CALIFORNIA, INC. 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 disbursements of escrow or sub-escrow funds, you should contact your title officer or escrow officer. WIRING INSTRUCTIONS 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 : 507185892** ** 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. -6- • 507185892 EXHIBIT "A" LEGAL DESCRIPTION The land referred to herein is situated in the State of California, County of Riverside, City of PALM SPRINGS, described as follows : LOT 5 OF AMENDED MAP OF VAL VISTA TRACT, AS SHOWN BY MAP ON FILE IN BOOK 21 PAGE (S) 100 , OF MAPS, RECORDS OF RIVERSIDE COUNTY, CALIFORNIA. End of Legal Description Stewart Title Guaranty Company, Stewart Title Insurance Company, Stewart Title of California, Inc, Privacy Policy Notice PURPOSE OF THIS NOTICE Title V of the Gramm-Leach-Bliley Act (GLBA) generally prohibits any financial institution, directly or through its affiliates, from sharing nonpublic personal information about you with nonaffiliated third party unless the institution provides you with a notice of its privacy policies and practices, such as the type of information that it collects about you and the catagories of persons or entities to whom it may be disclosed. In compliance with the GLBA, we are providing you with this document, which notifies you of the privacy policies and practices of Stewart Title Guaranty Company, Stewart Title Insurance Company, Stewart Title of California, Inc. We may collect nonpublic personal information about you from the following sources: * Information we receive from you, such as on applications or other forms. Information about your transactions we secure from our files, or from our affiliates or others. Information we receive from a consumer reporting agency. Information that we receive from others involved in your transaction, such as the real estate agent or lender. Unless it is specifically stated otherwise in an amended Privacy Policy Notice, no additional nonpublic personal information will be collected about you. We may disclose any of the above information that we collect about our customers or former customers to our affiliates or to nonaffiliates third parties permitted by law. We also may disclose this information about our customers or former customers to the following types of nonaffiliated companies that perform marketing services on our behalf or with whom we have joint marketing agreements: * Financial service providers such as companies engaged in banking, consumer finance, securities and insurance. Non-financial companies such as envelope stuffers and fulfillment service providers. WE DO NOT DISCLOSE ANY NONPUBLIC PERSONAL INFORMATION ABOUT YOU WITH ANYONE FOR ANY PURPOSE THAT IS NOT SPECIFICALLY PERMITTED BY LAW. We restrict access to nonpublic personal information about you to those employees who need to know that information in order to provide products or services to you. We maintain physical, electronic, and procedural safeguards that comply with federal regulations to guard your nonpublic personal information. iQ MRTAUr- Tills to not a plat a survey. ft is fOrnished as a convenience to locate the land indicated hereon with reference to streets and other land. No liability is assumed by reason of s reliance hereon. Stewart Title Co. p 3 4 5 6 SCALE IN 7%e aF AM IMGN i-SCO-345-7334 29-71-3 680—07 T C,A.on-ace POR. N 2 NE 4 SEC. /9 7- 4 S. R.5 E. N/S MFP/5 FOR ASSEfSMENT PURPOSES GVLY BK 677 N4 COR 1 SEC /9 " ' N a 1�' o RAMON LOA y Lor 4 `y 44111 I]ods x �+� eT nsa -sr,--••+;: Tr= m a / O o 2 3 7 6 9 0 ]• 3e - 00 t 10 0� Q 02P1c // a 0.02h /p CR H 021hv k TRd ON- o.xnk I, If• k OTL Ise lu xa 8 7 6 g 3o PAR/ � g O 7 O 6 0 O 5 I o- o e , /00 OR a<rc oeono. xEwxa 0 400ACNT �= ��E cot-- �F�71EAR6'B + 3. d s I I- PAR2 N A -ee 01I_I i O �C 'is pp 153 I{e µ153 y11 f/s0 01Y1-3 RF/$s 4 F .W 07/ Sa Q 4 iso . 073 4ia. Ic11t e r.-1 lee, are �• o = TPA aU(l60 N N 7334 ACNT 0 y '� s 74 ©5 ` O 6 y O S 09 � F 11)t b.16 VKT.-.1 p1,33 1`9 Cp 4 LOr C OF EA{ 6S O w �1 f2 if /O 6 e y ® O O O 074 3+ 0 ; 140 O15 15 /a (// 7 , 12 18 � e• lc 51131 /N/9I/n 1 - 153 All N J y LOT S M'K'IS�E-- —:f— PARvti«M � rI� 0B M. B. 14/652 S.D. Palm Valley CO/Oay Loads GpC n ; ^co M. B. c':0/99 Val Vista Tract ' M 9. 211100 Val Vista Tract (Amended KOp) ASSESSORS MAP RK 680 P6.L7 P.M J92177-78 P.M.28773 RIVERSIDE COUNTY, CALIF. JAN- 1959 ��f CLTA PRELIMINARY REPORT FORM SEXHIBIT A CLTA PRELIMINARY REPORT FORM LIST OF PRINTED E:-.("T^TIONS 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. (B) 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; (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 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 DOING BUSINESS L}.WS, 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 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 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 COULD BE ASCERTAINED BY AN INSPECTION OF THE LANE 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 I OF 6 ^CLTA PRELIMINARY RE0T 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 COVERAGE IN ITEM 8 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 1. 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 DOES NOT LIMIT THE LIEN COVERAGE IN ITEM 8 OF COVERED TITLE RISKS. 3. ANY FACTS ABOUT THE LAND WHICH A CORRECT SUINEY 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 REP T 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. (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 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. 4. UNENFORCEADILITY OF THE LIEN OF THE INSURED MORTGAGE BECAUSE OF THE INABILITY OR FAILURE OF THE 'NSDECD 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 REP#T FORM THE ABOVE POLICY FORMS MAY BE ISS 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 HY 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 ➢Y 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; (9) 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: 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) TIE 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 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 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) TIE 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 (➢) 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 REP�T 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 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 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, 17, 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 TAILING 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 9, 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 DESCRIBED 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: 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. THIS EXCLUSION FROM COVERAGE 1(A) DOES NOT LIMIT THE COVERAGE PROVIDED IN INSURING PROVISIONS NUMBER 14, 15, 16, 17, 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 AFFECT'-ING 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, 17, 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 LOSS 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 9, 0, 15, 16, 18, 21, 22, 24, 25, 26, 28, 29, 30, 32, 33, 34, 35, 30, 39, AND 40); (E) RESULTING IN LOSS OR DAMAGE WHICH WOULD NOT HAVE BEEN SUSTAINED IF THE INSURED CLAIMANT HAD PAI➢ VALUE FOR THE 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 TEE 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. 9. 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 7 DOES NOT LIMIT THE COVERAGE OF INSURING PROVISION 34. REV 1999 STEWART TITLE GUARANTY COMPANY PAGE 6 OF 6