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HomeMy WebLinkAboutContracts & Agreements_88-2017 ti First American Title Insurance Company National Commercial Services 3281 E Guasti Road, Suite 440, Ontario, CA 91761 (909)510 6206 - Fax (877)461-2088 SUPPLEMENTAL ESCROW INSTRUCTIONS To First American Title Insurance Company National 05/03/2017 Commercial Services File No NCS-835084-ONT1 (KS) Re 1341 West Redlands Boulevard, Redlands, CA The undersigned acknowledge receipt of a copy of the Preliminary Report dated 2/1/17 The parties authorize and instruct Escrow Holder to correct the legal description on any and all documents previously signed and deposited in this escrow, if necessary Buyer approves the contemplated policy form and further approves exceptions listed as Items 1, 7-12, 14-15, to appear in the policy of title insurance to be issued at the close of escrow Those exceptions listed as Items 2-6, 13 must be eliminated prior to the close of escrow Buyer further acknowledges that First American has not examined the public records for any involuntary liens that may be of record against the undersigned Buyer(s) Buyer understands that, should there be any involuntary liens recorded against the Buyer at the time Buyer acquires title, these involuntary liens will become liens on the title to the property ALL OTHER TERMS AND CONDITIONS OF THIS ESCROW WILL REMAIN THE SAME City of lands, a municipal c orpgration B aul W Foster Mayor ATTEST• nne Donaldson, City Clerk Page 1 of 1 A%IFk!r, � 1 First American Title Insurance Company National Commercial Services 3281 E Guasti Road, Suite 440, Ontario, CA 91761 (909)510-6206 - Fax (877)461-2088 SUPPLEMENTAL ESCROW INSTRUCTIONS To, First American Title Insurance Company National 05/03/2017 Commercial Services File No NCS-835084-ONT1 (KS) Re 1341 West Redlands Boulevard, Redlands, CA BUYER CONTINGENCIES Buyers signature hereto shall constitute approval/satisfaction and/or waiver of all contingencies Escrow Holder is hereby authorized and instructed to proceed with the closing/recording of this transaction upon receipt of all required documentation and funds HAZARD INSURANCE- Buyer is to satisfy himself regarding hazard insurance for the subject property outside of escrow Escrow Holder is relieved of any and all liability regarding same ALL OTHER TERMS AND CONDITIONS OF THIS ESCROW WILL REMAIN THE SAME City of R dla��cipal or ra i s � By 'Raul W Foster Mayor ATTEST. anne Donaldson, City Clerk Page 1 of 1 First American Title Insurance Company National Commercial Services 3281 E Guasti Road,Suite 440 \ � Ontario,CA 91761 INCOMING DOMESTIC WIRE INSTRUCTIONS PAYABLE TO First American Title Insurance Company National Commercial Services BANK' First American Trust-Santa Ana ADDRESS 5 First American Way, Santa Ana, CA 92707 ACCOUNT NO 3016020000 ROUTING NUMBER 122241255 PLEASE REFERENCE THE FOLLOWING PROPERTY. 1341 West Redlands Boulevard, Redlands, CA FILE NUMBER NCS-835084-ONT1 (KS) Failure to reference all of the above information may result in a delay of your funds being applied to your file. PLEASE NOTE: With cybercrlmes on the increase, it is Important to be ever vigilant If you receive an e mall or any other communication that appears to be generated from a First American employee that contains new, revised or altered bank wire instructions, consider it suspect and call our office at a number you trust Our bank wire instructions rarely change Funds from other than buyer or seller: Other than funds from a designated lender, real estate broker, or the attorney of record, we will only accept incoming wires that are from the buyer or seller on a transaction Other third party deposits not accompanied by appropriate Instructions will be returned to the remitter Funds from a U.S. Bank: Funds should be wired from a bank within the United States Notify our office at (909)510-6206, Kelly Simoneau when you have transmitted your wire Funds from a non-U.S. Bank: If your funds are being wired from a non-U.S. bank, additional charges may apply Contact our office for Incoming International Wiring Instructions ACH Transfers are NOT wire transfers An ACH transfer is not Immediately available funds and requires additional time for clearance An ACH transfer cannot be accepted for an imminent closing Acceptance of ACH transfers are subject to state law. Contact our office at(909)510-6206, Kelly Simoneau prior to sending funds by ACH transfer Contact our office at(909)510-6206, Kelly Simoneau when funds are sent Version 10 April 2016 A%I F k l C ! FirstAmencan Title Insurance Company 1' National Commercial Setwces 3281 E Guasti Road Suite 440•Ontario CA 91761 r-� Office Phone(909)510 6200 Office Fax•(877)461 2088 Buyer's Settlement Statement File No NCS-835084-ONT1 Escrow Officer Kelly Simoneau/KS Estimated Settlement Date 05/10/2017 Disbursement Date Property 1341 West Redlands Boulevard, Redlands, CA Buyer City of Redlands, a municipal corporation 35 Capon Street Suite 222, Redlands, CA 92373 Seller Gonkira Properties LLC 103 Esparta Way, Santa Monica CA 90402 Description Buyer Charge I Buyer Credit Consideration I i Total Consideration 1,000,000 00 Prorations County Taxes 05/10/17 to 07/01/17 @$1,048 33/semi 29703 County Taxes 05/10/17 to 07/01/17 @$915 70/semi 25945 County Taxes 05/10/17 to 07/01/17 @$736 67/semi 20872 County Taxes 05/10/17 to 07/01/17 @$3,800 18/semi 1,07672 j Title/Escrow Charges Closing-Escrow Fee 112 of total cost to First American Title Insurance Company National 1,15000 Commercial Services Miscellaneous Pad Refund Any unused funds to be refunded at closing to First American 46208 Title Insurance Company National Commercial Services Policy-Extended ALTA 2006 Owner's if applicable to First American Title Insurance 54600 i Company National Commercial Services Cash(X From)( To)Buyer 1,004,000 00 Totals 1,004,000 00 1 004 000 00 PLEASE NOTE A modification of money transfer or disbursement instructions can be a red flag for Online Banking Fraud and could be a trap for the unwary Should we knowingly receive such a modification, in the interest of prudence,we may consider it suspect and call a known and trusted phone number to verify its authenticity and accuracy Your awareness and cooperation in taking appropriate steps to prevent fraud is greatly appreciated BUYER(S) Settlement Statement Page 1 of 2 Print Date 05/03/2017 6 22 PM Buyer's Settlement Statement Settlement Date File No NCS-835084-ONT1 Officer Kelly Simoneau/KS City of Redlands, a municipal corporation By U Paul W Foster Mayor ATTEST a ne Donaldson, City Clerk Settlement Statement Page 2 of 2 Print Date 05/03/2017,6 22 PM Form No 1068-2 Commitment No NCS 835084 ONTi ALTA Plain Language Commitment Page Number 1 Amendment 11 t First American Title Insurance Company National Commercial Services 3281 lE Guasti Road, suite 440 Ontario, CA 91761 April 12, 2017 Chris Boatman City of Redlands City Attorney 35 Cajon Street, Suite 200 Redlands, CA 92373 Phone (909)798-7595 Customer Reference 1341 West Redlands Boulevard Title Officer Greg Franke Title Assistant Erin West Phone (909)510-6233 Phone (909)510-6200 Email gfranke@firstam com Email ewest@firstam.com Order Number NCS-835084-ONT1 Escrow Officer Kelly Simoneau Phone (909)510-6206 Email ksimoneau@firstam.com Property 1341 West Redlands Boulevard, Redlands, CA Attached please find the following Item(s) Commitment Thank You for your confidence and support We at First American Title Insurance Company maintain the fundamental principle Customer First! First American Title Insurance Company Form No 1068 2 Commitment No NCS 835084 ONT1 ALTA Plain Language Commitment Page Number 2 First American Title Insurance Company INFORMATION The Title Insurance Commitment is a legal contract between you and the company It is issued to show the bans on which we will issue a Title Insurance Policy to you The Policy will insure you against certain risks to the land title, subject to the limitations shown in the policy The Company will give you a sample of the Policy form, if you ask. The Commitment is based on the land title as of the Commitment Date Any changes in the land title or the transaction may affect the Commitment and the Policy The Commitment is subject to its Requirements, Exceptions and Conditions This information is not part of the title insurance commitment TABLE OF CONTENTS Page Agreement to Issue Policy 3 Schedule A 1 Commitment Date 4 2 Policies to be Issued, Amounts and Proposed Insured 4 3 Interest in the Land and Owner 4 4 Description of the Land 4 Schedule B-1 - Requirements Schedule B-2 - Exceptions Conditions YOU SHOULD READ THE COMMITMENT VERY CAREFULLY. If you have any questions about the Commitment, please contact the issuing office. Form No 1068 2 Commitment No NCS 835084 ONT1 ALTA Plain Language Commitment Page Number 3 COMMITMENT FOR TITLE INSURANCE Issued by First American Title Insurance Company Agreement to Issue Policy We agree to issue a policy to you according to the terms of this Commitment When we show the policy amount and your name as the proposed insured in Schedule A, this Commitment becomes effective as of the Commitment Date shown in Schedule A, If the Requirements shown in this Commitment have not been met within six months after the Commitment Date, our obligation under this Commitment will end Also, our obligation under this Commitment will end when the Policy is issued and then our obligation to you will be under the Policy Our obligation under this Commitment is limited by the following The Provisions in Schedule A The Requirements in Schedule B-1 The Exceptions in Schedule B-2 The Conditions This Commitment is not valid without Schedule A and Sections 1 and 2 of Schedule B Form No 1068 2 Commitment No NCS 835084 ONT1 ALTA Plain Language Commitment Page Number 4 SCHEDULE A 1 Commitment Date, February 01, 2017 at 7 30 A M 2 Policy or Policies to be issued Amount (A) ALTA Owner's Policy $1,000,000 00 ALTA Standard Owner Policy Proposed Insured City of Redlands, a municipal corporation (B) ALTA Loan Policy $To Be Determined To Be Determined Proposed Insured To Be Determined 3 (A) The estate or interest in the land described In this Commitment is Fee (B) Title to said estate or interest at the date hereof is vested in Gonkira Properties LLC, a California limited liability company 4. The land referred to in this Commitment is situated in the City of Redlands, County of San Bernardino, State of California, and is described as follows PARCEL 1. THAT PORTION OF THE NORTHWEST QUARTER OF BLOCK 20 OF BARTON RANCH, IN THE COUNTY OF SAN BERNARDINO, STATE OF CALIFORNIA, AS PER PLAT RECORDED IN BOOK 6 OF MAPS, PAGE 19, RECORDS OF SAID COUNTY, DESCRIBED AS FOLLOWS BEGINNING AT THE SOUTHEAST CORNER OF THE NORTHWEST QUARTER OF SAID BLOCK 20, THENCE NORTH 10 11'WEST ALONG THE EAST LINE OF NORTHWEST QUARTER OF SAID BLOCK 20, 75 13 FEET TO THE SOUTHERLY LINE OF STATE HIGHWAY NO 99; THENCE NORTH 710 4TWEST 200 FEET ALONG THE SOUTHERLY LINE OF SAID HIGHWAY NO 99 TO A POINT; THENCE SOUTH 10 11'EAST 132 79 FEET TO A POINT IN THE SOUTH LINE OF THE NORTHWEST QUARTER OF SAID BLOCK, THENCE EAST ALONG THE SOUTH LINE OF SAID NORTHWEST"QUARTER, 188 8 FEET TO POINT OF BEGINNING PARCEL 2 Form No 1068 2 Commitment No NCS 835084 ONT1 ALTA Plain Language Commitment Page Number 5 THE NORTH 132 FEET OF THE SOUTHWEST 1/4 OF LOT 20, OF BARTON RANCH, IN THE COUNTY OF SAN BERNARDINO, STATE OF CALIFORNIA,AS PER PLAT RECORDED IN BOOK 6 OF MAPS, PAGE 19, RECORDS OF SAID COUNTY NOTE AREA AND DISTANCES OF PROPERTY HEREIN DESCRIBED ARE COMPUTED TO STREET CENTERS PARCEL 3 THAT PORTION OF THE NORTHWEST QUARTER OF BLOCK 20, BARTON RANCH, IN THE COUNTY OF SAN BERNARDINO, STATE OF CALIFORNIA,AS PER PLAT RECORDED IN BOOK 6 OF MAPS, PAGE 19, RECORDS OF SAID COUNTY, DESCRIBED AS FOLLOWS COMMENCING AT THE SOUTHEAST CORNER OF THE NORTHWEST QUARTER OF BLOCK 20, THENCE NORTH 10 11' WEST ALONG THE EAST LINE OF SAID NORTHWEST QUARTER OF BLOCK 20, 75 13 FEET TO THE SOUTHERLY LINE OF STATE HIGHWAY NO 99, THENCE NORTH 710 47'WEST ALONG THE SOUTHERLY LINE 200 FEET TO THE TRUE POINT OF BEGINNING, THENCE NORTH 710 47'WEST ALONG THE SOUTHERLY LINE OF SAID STATE HIGHWAY, 110 FEET, THENCE SOUTH 10 11' EAST, 173 74 FEET TO THE SOUTH LINE OF THE NORTHWEST QUARTER OF SAID BLOCK 20, THENCE EAST ALONG THE SOUTH LINE OF SAID NORTHWEST QUARTER OF BLOCK 20, 103 56 FEET TO A POINT WHICH IS SOUTH 10 11' EAST FROM THE TRUE POINT OF BEGINNING, THENCE NORTH 10 11' WEST, 132 79 FEET"TO THE POINT OF BEGINNING, PARCEL 4' THAT PORTION OF SAID NORTHWEST 1/4 OF BLOCK 20, BARTON RANCH, AS PER PLAT RECORDED IN BOOK 6 OF MAPS, PAGE 19, RECORDS OF SAID COUNTY, DESCRIBED AS FOLLOWS BEGINNING AT A POINT ON THE SOUTH LINE OF THE STATE HIGHWAY NO 99, WHICH IS 100 FEET SOUTHEASTERLY, MEASURED ALONG SAID STATE HIGHWAY, FROM ITS INTERSECTION WITH THE WEST LINE OF THE NORTHWEST 1/4 OF SAID BLOCK 20, THENCE SOUTH, PARALLEL WITH THE WEST LINE OF SAID BLOCK TO THE SOUTH LINE OF THE NORTHWEST 1/4 OF SAID BLOCK, THENCE EAST 100 FEET ALONG THE SOUTH LINE OF SAID NORTHWEST 1/4, THENCE NORTH, PARALLEL WITH THE WEST LINE OF SAID BLOCK TO THE SOUTH LINE OF THE STATE HIGHWAY, THENCE NORTHWEST ALONG THE STATE HIGHWAY TO THE POINT OF BEGINNING APN 0292-184-02 (Affects Parcel 4) 0292-184-05 (Affects Parcel 1) 0292-184-18 (Affects Parcel 3) 0169-351-07 (Affects Parcel 2) Form No 1068 2 Commitment No NCS 635084 ONT1 ALTA Plain Language Commitment Page Number 6 SCHEDULE B SECTION ONE REQUIREMENTS The following requirements must be met (A) Pay the agreed amounts for the interest in the land and/or the mortgage to be insured (B) Pay us the premiums, fees and charges for the policy (C) Documents satisfactory to us creating the interest in the land and/or the mortgage to be insured must be signed, delivered and recorded (D) You must tell us in writing the name of anyone not referred to in this Commitment who will get an interest in the land or who will make a loan on the land We may then make additional requirements or exceptions (E) Releases(s) or Reconveyance(s) of Item(s) None (F) Other None (G) You must give us the following information 1 Any off record leases, surveys, etc 2 Statement(s) of Identity, all parties 3 Other None The following additional requirements, as indicated by "X", must be met [X] (H) Provide information regarding any off-record matters, which may include, but are not limited to leases, recent works of improvement, or commitment statements in effect under the Environmental Responsibility Acceptance Act, Civil Code Section 850, et seq The Company's Owner's Affidavit form (as provided by company) must be completed and submitted prior to close In order to satisfy this requirement. This Commitment will then be subject to such further exceptions and/or requirements as may be deemed necessary [] (I) An ALTA/NSPS survey of recent date, which complies with the current minimum standard detail requirements for ALTA/NSPS land title surveys, must be submitted to the Company for review This Commitment will then be subject to such further exceptions and/or requirements as may be deemed necessary [X] (3) The following LLC documentation is required (i) a copy of the Articles of Organization (ii) a copy of the Operating Agreement, if applicable (iii) a Certificate of Good Standing and/or other evidence of current Authority to Conduct Business within the State (iv) express Company Consent to the current transaction Form No 1068 2 Commitment No NCS 835084 ONT1 ALTA Plain Language Commitment Page Number 7 [] (K) The following partnership documentation is required (i) a copy of the partnership agreement, including all applicable amendments thereto (ii) a Certificate of Good Standing and/or other evidence of current Authority to Conduct Business within the State (iii) express Partnership Consent to the current transaction [] (L) The following corporation documentation is required (i) a copy of the Articles of Incorporation (ii) a copy of the Bylaws, including all applicable Amendments thereto (iii) a Certificate of Good Standing and/or other evidence of current Authority to Conduct Business within the State (iv) express Corporate Resolution consenting to the current transaction [X] (M) Based upon the Company's review of that certain partnership/operating agreement dated Not disclosed for the proposed insured herein, the following requirements must be met Any further amendments to said agreement must be submitted to the Company, together with an affidavit from one of the general partners or members stating that it is a true copy, that said partnership or limited liability company is in full force and effect, and that there have been no further amendments to the agreement This Commitment will then be subject to such further requirements as may be deemed necessary [] (N) A copy of the complete lease, as referenced in Schedule A, #3 herein, together with any amendments and/or assignments thereto, must be submitted to the Company for review, along with an affidavit executed by the present lessee stating that it is a true copy, that the lease is in full force and effect, and that there have been no further amendments to the lease This Commitment will then be subject to such further requirements as may be deemed necessary [X] (0) Approval from the Company's Underwriting Department must be obtained for issuance of the policy contemplated herein and any endorsements requested thereunder This Commitment will then be subject to such further requirements as may be required to obtain such approval [] (P) Potential additional requirements, if ALTA Extended coverage is contemplated hereunder, and work on the land has commenced prior to close, some or all of the following requirements, and any other requirements which may be deemed necessary, may need to be met [] (Q) The Company's "Indemnity Agreement I" must be executed by the appropriate parties [] (R) Financial statements from the appropriate parties must be submitted to the Company for review [] (S) A copy of the construction contract must be submitted to the Company for review [] (T) An inspection of the land must be performed by the Company for verification of the phase of construction [] (U) The Company's "Mechanic's Lien Risk Addendum" form must be completed by a Company employee, based upon information furnished by the appropriate parties involved Form No 1068 2 Commitment No NCS 835084 ONT1 ALTA Plain Language Commitment Page Number 8 SCHEDULE B SECTION TWO EXCEPTIONS Any policy we issue will have the following exceptions unless they are taken care of to our satisfaction The printed exceptions and exclusions from the coverage of the policy or policies are set forth in Exhibit A attached. Copies of the policy forms should be read They are available from the office which issued this Commitment 1 General and special taxes and assessments for the fiscal year 2017-2018, a lien not yet due or payable 2 General and special taxes and assessments for the fiscal year 2016-2017 First Installment $1,048 35, PAID Penalty $000 Second Installment $1,048 33, OPEN Penalty $000 Tax Rate Area, 005016 A P No 0292-184-02-0-000 (Affects Parcel 4) 3 General and special taxes and assessments for the fiscal year 2016-2017 First Installment $915.72, PAID Penalty $000 Second Installment $915 70, OPEN Penalty $000 Tax Rate Area 005016 A P No 0292-184-05 0 000 (Affects Parcel 1) 4 General and special taxes and assessments for the fiscal year 2016-2017 First Installment $736 69, PAID Penalty $000 Second Installment $736 67, OPEN Penalty, $000 Tax Rate Area 005016 A P No 0292-184-18-0 000 (Affects Parcel 3) Form No 1068 2 Commitment No NCS 835084 ONTi ALTA Plain Language Commitment Page Number 9 5 General and special taxes and assessments for the fiscal year 2016 2017 First Installment $3,800 20, PAID Penalty $000 Second Installment $3,800 18, OPEN Penalty $000 Tax Rate Area 005016 A P No 0169-351-07-0-000 (Affects Parcel 2) 6 The lien of defaulted taxes for the fiscal year 2006-2007, and any subsequent delinquencies Tax Rate Area 005016 A P No 0292-184-18-0-000 Amount to redeem $32120 Valid through February, 2017 Amount to redeem $32276 Valid through March, 2017 Please contact the tax office to verify the payoff amount (Affects Parcel 3) 7 The lien of supplemental taxes, if any, assessed pursuant to Chapter 3 5 commencing with Section 75 of the California Revenue and Taxation Code 8 This item has been intentionally deleted 9 An easement for public utilities and incidental purposes, recorded June 25, 1946 as Book 1905, Page 490 of Official Records In Favor of Southern California Edison Company, Ltd Affects as described therein The location of the easement cannot be determined from record information 10 An easement for public utilities and incidental purposes, recorded August 24, 1946 as Book 1946, Pages 402 and 404 of Official Records In Favor of Southern California Edison Company Affects as described therein The location of the easement cannot be determined from record information 11 An easement for public utilities and incidental purposes, recorded December 11, 1964 as Book 6291, Pages 361 and 362 of Official Records In Favor of California Water and Telephone Company Affects as described therein 12 The fact that the land lies within the boundaries of the City of Redlands Redevelopment Project Area, as disclosed by the document recorded November 09, 1972 as Book 8057, Page 789 of Official Records. 13 This item has been intentionally deleted Form No 1068-2 Commitment No NCS 835084 ONT1 ALTA Plain Language Commitment Page Number 10 14 Water rights, claims or title to water, whether or not shown by the public records 15 Rights of parties in possession Form No 1068 2 Commitment No NCS 835084 OM1 ALTA Plain Language Commitment Page Number 11 INFORMATIONAL NOTES 1 The property covered by this report is vacant land 2 According to the public records, there has been no conveyance of the land within a period of twenty-four months prior to the date of this report, except as follows None 3 This preliminary report/commitment was prepared based upon an application for a policy of title insurance that identified land by street address or assessor's parcel number only It is the responsibility of the applicant to determine whether the land referred to herein is in fact the land that is to be described in the policy or policies to be Issued, The map attached, if any, may or may not be a survey of the land depicted hereon f=irst American Title Insurance Company expressly disclaims any liability for loss or damage which may result from reliance on this map except to the extent coverage for such loss or damage is expressly provided by the terms and provisions of the title insurance policy, If any, to which this map Is attached *****To obtarn wire instructions for deposit of funds to your escrow ale please contact your Escrow Dicer ***** Form No 1068 2 Commitment No NCS 835084 ONTi ALTA Plain Language Commitment Page Number 12 CONDITIONS 1 DEFINITIONS (a)"Mortgage" means mortgage, deed of trust or other security instrument (b)°Public Records" means title records that give constructive notice of matters affecting the title according to the state law where the land is located 2 LATER DEFECTS The Exceptions in Schedule B - Section Two may be amended to show any defects, liens or encumbrances that appear for the first time in the public records or are created or attached between the Commitment Date and the date on which all of the Requirements (a) and (c) of Schedule B - Section One are met We shall have no liability to you because of this amendment 3 EXISTING DEFECTS If any defects, liens or encumbrances existing at Commitment Date are not shown in Schedule B, we may amend Schedule B to show them. If we do amend Schedule B to show these defects, hens or encumbrances, we shall be liable to you according to Paragraph 4 below unless you knew of this information and did not tell us about it in writing 4 LIMITATION OF OUR LIABILITY Our only obligation is to issue to you the Policy referred to in this Commitment, when you have met its Requirements If we have any liability to you for any loss you incur because of an error in this Commitment, our liability will be limited to your actual loss caused by your relying on this Commitment when you acted in good faith to comply with the Requirements shown in Schedule B - Section One or eliminate with our written consent any Exceptions shown in Schedule B - Section Two. We shall not be Gable for more than the Policy Amount shown in Schedule A of this Commitment and our liability is subject to the terms of the Policy form to be issued to you S CLAIMS MUST BE BASED ON THIS COMMITMENT Any claim, whether or not based on negligence, which you may have against us concerning the title to the land must be based on this commitment and is subject to its terms Form No 1068-2 Commitment No NCS 835084 CINTI ALTA Plain Language Commitment Page Number 13 FirstAmerican Title Privacy Information We Are Committed to Safeguarding Customer Information In order to better serve your needs now and in the future,we may ask you to provide us with certain information We understand that you may be concerned about what we will do with such information particularly any personal or financial information We agree that you have a right to know how we will utilize the personal information you provide to us Therefore,together with our subsidiaries we have adopted this Privacy Policy to govern the use and handling of your personal information Applicability This Privacy Policy governs our use of the information that you provide to us It does not govern the manner in which we may use mformabon we have obtained from any other source such as Information obtained from a public record or from another person or entity First American has also adopted broader guidelines that govern our use of personal information regardless of its source First American calls these guidelines its Fair Information Values Types of Information Depending upon which of our services you are utilizing,the types of nonpublic personal information that we may collect include • Information we receive from you on applications,forms and in other communications to us,whether in writing,in person,by telephone or any other means, • information about your transactions with us,our affiliated companies or others,and • Information we receive from a consumer reporting agency Use of Information We request information from you for our own legitimate business purposes and net for the benefit of any nonaffiliated party Therefore we will not release your information to nonaffiliated parties except (1)as necessary for us to provide the product or service you have requested of us,or(Z)as permitted by law We may,however,store such information indefinitely,including the period after which any customer relationship has ceased Such information may be used for any intema$purpose,such as quality control efforts or customer analysis We may also provide all of the types of nonpublic personal information listed above to one or more of our affiliated companies Such affiliated companies include financial service providers such as title insurers,property and casualty insurers and trust and investment advisory companies,or companies involved in real estate services,such as appraisal companies,home warranty companies and escrow companies Furthermore, we may also provide all the information we collect,as descnbed above,to companies that perform marketing services on our behalf on behalf of our affiliated companies or to other financial institutions with whom we or our affiliated companies have joint marketing agreements Former Customers Even if you are no longer our customer our Privacy Policy will continue to apply to you Confidentiality and Security We will use our best efforts to ensure that no unauthorized parties have access to any of your information We restrict access to nonpublic personal information about you to those individuals and entities who need to know that information to provide products or services to you We will use our best efforts to train and oversee our employees and agents to ensure that your information will be handled responsibly and In accordance with this Privacy Policy and First American's Fair Information Values We currently maintain physical,electronic,and procedural safeguards that comply with federal regulations to guard your nonpubl c personal Information Information Obtained Through Our Web Site First American Financial Corporation is sensitive to privacy issues on the Internet We believe it;s important you know how We treat the information about you we receive on the Internet In general,you can visit First American or its affiliates'Web sites on the World Wide Web without telling us who you are or revealing any information about yourself Our Web servers collect the domain names not the e-mail addresses,of visitors This information is aggregated to measure the number of visits,average time spent on the site,pages viewed and similar information First American uses this Information to measure the use of our site and to develop ideas to improve the content of our site There are times however when we may need information from you,such as your name and email address When information is needed,we will use our best efforts to let you know at the time of collection how we will use the personal information Usually the personal information we collect is used only by us to respond to your inquiry,process an order or alEow you to access specific account/profile Information If you choose to share any personal information with us,we will only use it In accordance with the policies outlined above Business Relationships First American Financial Corporation's site and its affiliates'sites may contain(Inks to other Web sites While we try to link only to sites that share our high standards and respect for privacy we are not responsible for the content or the privacy practices employed by other sites Cookies Some of First American's Web sites may make use of'cookie'technology to measure site activity and to customize information to your personal tastes A cookie Is an element of data that a Web site can send to your browser which may then store the cookie on your hard drive firstAm-corn uses stored cookies The goal of this technology is to better serve you when visiting our site save you time when you are here and to provide you with a more meaningful and productive Web site experience ---------------------------------------------------------------------- Fair Information Values Fairness We consider consumer expectations about their privacy in all our businesses We only offer products and services that assure a favorable balance between consumer benefits and consumer privacy Public Record We believe that an open public record creates significant value for society enhances consumer choice and creates consumer opportunity We actively supportan open public record and emphasize its importance and contribution to our economy Use We believe we should behave responsibly when we use information about a consumer in our business We will obey the laws governing the collection use and dissemination of data Accuracy We will take reasonable steps to help assure the accuracy of the data we collect,use and disseminate Where possible,we will take reasonable steps to correct inaccurate information When as with the public record we cannot correct inaccurate information,we will take al€reasonable steps to assist consumers in identifying the source of the erroneous data so that the consumer can secure the required corrections Education We endeavor to educate the users of our products and services,our employees and others in our industry about the importance of consumer privacy We will instruct our employees on our fair Information values and on the responsible collection and use of data We will encourage others In our industry to tolled and use information in a responsible manner Security We will maintain appropriate facilities and systems to protect against unauthorized access to and corruption of the data we maintain Form 50 PRIVACY(9/1/10) Page 1 of 1 Privacy Information(200120 10 First American Financial Corporation) Form No 1068 2 Commitment No NCS 835084 ONT1 ALTA Plain Language Commitment Page Number 14 EXHIBIT A LIST OF PRINTED EXCEPTIONS AND EXCLUSIONS(BY POLICY TYPE) 1 CALIFORNIA LAND TITLE ASSOCIATION STANDARD COVERAGE POLICY-1990 SCHEDULE B 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 an real property or by the public records Proceedings by a public agency which may result in taxes or assessments,or notice 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 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 Imes,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 EXCLUSIONS FROM COVERAGE The following matters are expressly excluded from the coverage of this policy and the Company will not pay lass 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 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,hen 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) 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 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 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 their 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 2 AMERICAN LAND TITLE ASSOCIATION OWNER'S POLICY FORM B 1970 SCHEDULE OF EXCLUSIONS FROM COVERAGE 1 Any law,ordinance or governmental regulation(including but not limited to budding and zoning ordinances)restricting or regulating or prohibiting the occupancy,use or enjoyment of the land,or regulating the character,dimensions or location of any improvement now or hereafter erected on the land,or prohibiting a separation in ownership or a reduction in the dimensions of area of the land,or the effect of any violation of any such law,ordinance or governmental regulation 2 Rights of eminent domain or governmental rights of police power unless notice of the exercise of such rights appears in the public records at Date of Policy 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 and not shown by the public records but known to the insured claimant either at Date of Policy or at the date such claimant acquired an estate or interest insured by this policy and not disclosed in writing by the insured claimant to the Company prior to the date such insured claimant became an insured hereunder,(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 3. AMERICAN LAND TITLE ASSOCIATION OWNER'S POLICY FORM B-1970 WITH REGIONAL EXCEPTIONS When the American Land Title Association policy is used as a Standard Coverage Policy and not as an Extended Coverage Policy the exclusions set forth in paragraph 2 above are used and the following exceptions to coverage appear in the policy SCHEDULE B Form No 1068-2 Commitment No NCS 835084 ONT1 ALTA Plain Language Commitment Page Number 15 This policy does not insure against loss or damage by reason of the matters shown in parts one and two following Part One 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 2 Any facts,rights,interests,or claims which are not shown by the public records but which could be ascertained by an inspection of said land or by making Enquiry of persons in possession thereof 3 Easements,claims of easement or encumbrances 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 public records 5 Unpatented mining claims,reservations or exceptions in patents or in Acts authorizing the issuance thereof,water rights,claims or title to water 6 Any lien,or right to a lien,for services,labor or material heretofore or hereafter furnished,imposed by law and not shown by the public records 4 AMERICAN LAND TITLE ASSOCIATION LOAN POLICY 1970 WITH A L T A ENDORSEMENT FORM 1 COVERAGE SCHEDULE OF EXCLUSIONS FROM COVERAGE 1 Any law,ordinance or governmental regulation(including but not limited to building and zoning ordinances)restricting or regulating or prohibiting the occupancy,use or enjoyment of the land,or regulating the character,dimensions or location of any improvement now or hereafter erected on the land,or prohibiting a separation in ownership or a reduction in the dimensions or area of the land,or the effect of any violation of any such law ordinance or governmental regulation 2 Rights of eminent domain or governmental rights of police power unless notice of the exercise of such rights appears in the public records at Date of Policy 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 and not shown by the public records but known to the insured claimant either at Date of Policy or at the date such claimant acquired an estate or interest insured by this policy or acquired the insured mortgage and not disclosed in writing by the insured claimant to the Company prior to the date such insured claimant became an insured hereunder,(c)resulting in no loss or damage to the insured claimant,(d)attaching or created subsequent to Date of Policy(except to the extent insurance is afforded herein as to any statutory lien for labor or material or to the extent insurance is afforded herein as to assessments for street improvements under construction or completed at Date of Policy) 4 Unenforceability of the lien of the insured mortgage because of failure of the insured at Date of Policy or of any subsequent owner of the indebtedness to comply with applicable"doing business"laws of the state in which the land is situated 5 AMERICAN LAND TITLE ASSOCIATION IRAN POLICY-1.970 WITH REGIONAL EXCEPTIONS When the American Land Title Association Lenders Policy is used as a Standard Coverage Policy and not as an Extended Coverage Policy,the exclusions set forth in paragraph 4 above are used and the following exceptions to coverage appear in the policy SCHEDULE B This policy does not insure against loss or damage by reason of the matters shown in parts one and two following Part One 1 Taxes or assessments which are not shown as existing hens by the records of any taxing authority that levies taxes or assessments on real property 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 said land or by making inquiry of persons in possession thereof 3 Easements,claims of easement or encumbrances 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 public records 5 Unpatented mining claims,reservations or exceptions in patents or in Acts authorizing the issuance thereof;water rights,claims or title to water 6 Any lien,or right to a lien,for services,labor or material theretofore or hereafter furnished,imposed by law and not shown by the public records 5 AMERICAN MND TITLE ASSOCIATION LOAN POLICY 1992 WITH A L T A ENDORSEMENT FORM 1 COVERAGE 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 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 Form No 1068 2 Commitment No NCS 835084 ONT1 ALTA Plain Language Commitment Page Number 16 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 Polity,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 the extent insurance is afforded herein as to 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 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 the 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 of 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 record the instrument of transfer,or (b)of such recordation to impart notice to a purchaser for value or a judgment or lien creditor 7 AMERICAN LAND TITLE ASSOCIATION LOAN POLICY-1992 WITH REGIONAL EXCEPTIONS When the American Land Title Association policy is used as a Standard Coverage Policy and not as an Extended Coverage Policy the exclusions set forth in paragraph 6 above are used and the following exceptions to coverage appear in the policy SCHEDULER 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 2 Any facts,rights,interests,or claims which are not shown by the public records but which could be ascertained by an inspection of said land or by making inquiry of persons in possession thereof 3 Easements,claims of easement or encumbrances 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 public records 5 Unpatented mining claims,reservations or exceptions in patents or in Acts authorizing the issuance thereof,water rights,claims or title to water 6 Any lien,or right to a lien,for services,labor or material theretofore or hereafter furnished,imposed by law and not shown by the public records 8 AMERICAN LAND TITLE ASSOCIATION OWNER'S POLICY-1992 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 and zoning laws,ordinances,or regulations) restricting,regulating,prohibiting or relating to(i)the occupancy,use,or enjoyment of the land,(u)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 nobce 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 an 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 Form No 1068-2 Commitment No NCS 835084 ONT1 ALTA Plain Language Commitment Page Number 17 (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 9.AMERICAN LAND TITLE ASSOCIATION OWNER'S POLICY-1992 WITH REGIONAL EXCEPTIONS When the American Land Title Association policy is used as a Standard Coverage Policy and not as an Extended Coverage Polity the exclusions set forth in paragraph 8 above are used and the following exceptions to coverage appear in the policy SCHEDULE B 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 Part One 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 2 Any facts,rights,interests,or claims which are not shown by the public records but which could be ascertained by an inspection of said land or by making inquiry of persons in possession thereof 3 Easements,claims of easement or encumbrances 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 public records 5 Unpatented mining claims,reservations or exceptions in patents or in Acts authorizing the issuance thereof;water rights,claims or title to water 6 Any lien,or right to a lien,for services,labor or material theretofore or hereafter furnished,imposed by law and not shown by the public records ALTA RESIDENTIAL TITLE INSURANCE POLICY(6-1 87) EXCLUSIONS In addition to the Exceptions in Schedule 8,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 building and zoning ordinances and also laws and regulations concerning (a)and use (b)improvements on the land (c)and division (d)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)a notice of exercising the right appears in the public records on the Policy Date (b)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 (a)that are created,allowed,or agreed to by you (b)that are known to you,but not to us,on the Policy Date unless they appeared in the public records (c)that result in no loss to you (d)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 (a)to any land outside the area specifically described and referred to in Item 3 of Schedule A OR (b)in streets,alleys,or waterways that touch your land This exclusion does not limit the access coverage in Item 5 of Covered Title Risks 11 EAGLE PROTECTION OWNER S POLICY CLTA HOMEOWNER'S POLICY OF TITLE INSURANCE-1998 ALTA HOMEOWNER S POLICY OF TITLE INSURANCE-1998 Covered Risks 14(Subdivision Law Violation) 15(Building Permit) 16(Zoning)and 18(Encroachment of boundary walls or fences)are subject to Deductible Amounts and Maximum Dollar Limits of Liability Farm No 1068-2 Commitment No NCS 835084 ONT1 ALTA Plain Language Commitment Page Number 18 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 budding b zoning c land use d improvements on the 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 Public Records at the Policy Date 3 The right to take the Land by condemning it,unless a a notice of exercising the right appears in the Public 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 7,8 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 12 THIRD GENERATION EAGLE LOAN POLICY AMERICAN LAND TITLE ASSOCIATION EXPANDED COVERAGE RESIDENTIAL LOAN POLICY(1/01/08) 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,permit,or governmental regulation(including those relating to building and zoning)restricting regulating prohibiting,or relating to(i)the occupancy,use,or enjoyment of the Land,(ii)the character,dimensions,or location of any improvement erected on the Land,(iii)the subdivision of land,or(iv)environmental protection,or the effect of any violation of these laws,ordinances,or governmental regulations This Exclusion 1(a)does not modify or limit the coverage provided under Covered Risk 5,6,13(c), 13(d),14 or 16 (b)Any governmental police power This Exclusion 1(b)does not modify or limit the coverage provided under Covered Risk 5,6,13(c), 13(d) 14 or 16 2 Rights of eminent domain This Exclusion does not modify or limit the coverage provided under Covered Risk 7 or 8 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(however,this does not modify or limit the coverage provided under Covered Risk 11,16,17,18, 19,20,21,22,23,24,27 or 28),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 Unenforceability of the lien of the Insured Mortgage because of the inability or failure of an Insured to comply with applicable doing business laws of the state where the Land is situated 5 Invalidity or unenforceability in whole or in part of the lien of the Insured Mortgage that 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 This Exclusion does not modify or limit the coverage provided in Covered Risk 26 6 Any claim of invalidity,unenforceability or lack of priority of the lien of the Insured Mortgage as to Advances or modifications made after the Insured has Knowledge that the vestee shown in Schedule A is no longer the owner of the estate or interest covered by this policy This Exclusion does not modify or limit the coverage provided in Covered Risk 11 7 Any lien on the Title for real estate taxes or assessments imposed by governmental authority and created or attaching subsequent to Date of Policy This Exclusion does not modify or limit the coverage provided in Covered Risk 11(b)or 25 8 The failure of the residential structure,or any portion of it,to have been constructed before,on or after Date of Policy in accordance with applicable budding codes This Exclusion does not modify or limit the coverage provided in Covered Risk 5 or 6 13 AMERICAN LAND TITLE ASSOCIATION LOAN POLICY-2005 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 Form No 1068 2 Commitment No NCS 835084 ONT1 ALTA Plain Language Commitment Page Number 19 expenses that arise by reason of 1 (a)Any law,ordinance,permit,or governmental regulation(including those relating to building and zoning)restricting,regulating, prohibiting,or relating to (€)the occupancy,use,or enjoyment of the Land, (ii)the character,dimensions,or location of any improvement erected on the Land, (III)the subdivision of land,or (iv)environmental protection, or the effect of any violation of these laws,ordinances,or governmental regulations This Exclusion 1(a)does not modify or limit the coverage provided under Covered Risk 5 (b)Any governmental police power This Exclusion 1(b)does not modify or limit the coverage provided under Covered Risk 6 2 Rights of eminent domain This Exclusion does not modify or limit the coverage provided under Covered Risk 7 or 8 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(however,this does not modify or limit the coverage provided under Covered Risk 11, 13,or 14),or (e)resulting in loss or damage that would not have been sustained if the Insured Claimant had paid value for the Insured Mortgage 4 Unenforceability of the lien of the Insured Mortgage because of the inability or failure of an Insured to comply with applicable doing business laws of the state where the Land is situated 5 Invalidity or unenforceability in whole or in part of the lien of the Insured Mortgage that 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,by reason of the operation of federal bankruptcy,state insolvency,or similar creditors'rights laws,that the transaction creating the lien of the Insured Mortgage,is (a)a fraudulent conveyance or fraudulent transfer,or (b)a preferential transfer for any reason not stated in Covered Risk 13(b)of this policy 7 Any lien an the Title for real estate taxes or assessments imposed by governmental authority and created or attaching between Date of Policy and the date of recording of the Insured Mortgage in the Public Records This Exclusion does not modify or limit the coverage provided under Covered Risk 11(b) 14 AMERICAN LAND TITLE ASSOCIATION LOAN POLICY-2006 WITH REGIONAL EXCEPTIONS When the American Land Title Association policy is used as a Standard Coverage Policy and not as an Extended Coverage Policy the exclusions set forth in paragraph 13 above are used and the following exceptions to coverage appear in the policy SCHEDULE B 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 (a)Taxes or assessments that 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,(b)proceedings by a public agency that 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 that are not shown by the Public Records but that could be ascertained by an inspection of the Land or that may be asserted by persons in possession of the Land 3 Easements,liens or encumbrances,or claims thereof,not shown by the Public Records 4 Any encroachment,encumbrance,violation,variation,or adverse circumstance affecting the Title that would be disclosed by an accurate and complete land survey of the Land and 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 15.AMERICAN LAND TITLE ASSOCIATION OWNERS POLICY 2006 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,permit,or governmental regulation(including those relating to building and zoning)restricting,regulating, prohibiting,or relating to (i)the occupancy,use,or enjoyment of the Land, (u)the character,dimensions,or location of any Improvement erected on the Land, (w)the subdivision of land,or (iv)environmental protection,or the effect of any violation of these laws,ordinances, or governmental regulations This Exclusion 1(a) does not modify or limit the coverage provided under Covered Risk 5 Form No 1068 2 Commitment No NCS 835084 ONTI ALTA Plain Language Commitment Page Number 20 (b)Any governmental police power This Exclusion 1(b)does not modify or limit the coverage provided under Covered Risk 6 2 Rights of eminent domain This Exclusion does not modify or limit the coverage provided under Covered Risk 7 or 8 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 Clamant and not disclosed in writing to the Company by the Insured Clamant 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(however,this does not modify or limit the coverage provided under Covered Risks 9 and 10),or (e)resulting in loss or damage that would not have been sustained if the Insured Claimant had paid value for the Title 4 Any claim,by reason of the operation of federal bankruptcy,state insolvency,or similar creditors rights laws that the transaction vesting the Title as shown in Schedule A.is (a)a fraudulent conveyance or fraudulent transfer,or (b)a preferential transfer for any reason not stated in Covered Risk 9 of this policy 5 Any lien on the Title for real estate taxes or assessments imposed by governmental authority and created or attaching between Date of Policy and the date of recording of the deed or other instrument of transfer in the Public Records that vests Title as shown in Schedule A 16 AMERICAN LAND TITLE ASSOCIATION OWNER'S POLICY-2006 WITH REGIONAL EXCEPTIONS When the American Land Title Association policy is used as a Standard Coverage Policy and not as an Extended Coverage Policy the exclusions set forth in paragraph 15 above are used and the following exceptions to coverage appear in the policy SCHEDULE B 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 (a)Taxes or assessments that 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,(b)proceedings by a public agency that 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 that are not shown by the Public Records but that could be ascertained by an inspection of the Land or that may be asserted by persons in possession of the Land 3 Easements,liens or encumbrances,or claims thereof,not shown by the Public Records 4 Any encroachment,encumbrance,violation,variation,or adverse circumstance affecting the Title that would be disclosed by an accurate and complete land survey of the Land and 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 FirstAmerxcan Tide Insurance Company t t National Commercial Semces 3281 E Guasti Road Suite 440 •Ontario CA 91761 Office Phone(909)510-6200 Office Fax•(877)461 2088 Buyer's Estimated Settlement Statement File No NCS 835084-ONT1 Escrow Off icer Kelly Simoneau/KS Estimated Settlement Date 05/19/2017 Disbursement Date Property: 1341 West Redlands Boulevard Redlands CA Buyer City of Redlands a municipal corporation 35 Cajon Street, Suite 222, Redlands, CA 92373 Seller Gonkira Properties LLC 103 Esparta Way, Santa Monica, CA 90402 Description Buyer Charge Buyer Credit - _ ... .. . ........... Consideration Total Consideration � 1 00O,000 ti-0 Prorat[ons -_---_-- County Taxes 05/19/17 to 07/01/17 0D$1 048 33/semi 24461 County Taxes 05/19/17 to 07/01/17 @$915 701semi ��-_ -� - -�� -� - 21366 I ---� County Taxes 05/19/17 to 07/01/17(o7$736 671semi _ 171 89 County Taxes 05/19/17 to 07/01/17[_7$3,800 181semi - `- - 88671 Title/Escrow Charges Closing-Escrow Fee 112 of total cost to First American Title Insurance Company National T 1,15000 �— Commercial Services Miscellaneous Pad Refund Any unused funds to be refunded at closing to First American _--� ---- 78713 Title Insurance Company National Commercial Services _ Policy-Extended ALTA 2006 Owner's if applicable to First American Title Insurance 54600 Company National Commercial Services - ----Gash(X From)( To)Buyer 1 00400000 Totals 1 004 000 00 ` 1,004,000 00 PLEASE NOTE A modification of money-transfer or disbursement instructions can be a red flag for Online Banking Fraud and could be a trap for the unwary Should we knowingly receive such a modification in the interest of prudence we may consider it suspect and call a known and trusted phone number to verify its authenticity and accuracy Your awareness and cooperation in taking appropriate steps to prevent fraud is greatly appreciated Settlement Statement Page 1 of 2 Print Date 0511712017,8 03 AM Buyer's Estrrnated Sttdement Statement Settlement ❑ate File No NCS-835084-ONT1 Officer. Kelly Simoneau/KS BUYER(S). City of Redlands, a municipal corporation Paul W Foster Mayor ATTEST: 3 g*e Donaldson, City Clerk Settlement Statement Page 2 of 2 Print Date 05/1712017,8 03 AM