HomeMy WebLinkAboutContracts & Agreements_232-2013_CCv0001.pdf Commonwealth Land Title Company
Commonweami 4100 Newport Place Dr, Suite 120
Newport Beach, CA 92660
LAND TITLE COMPANY Phone: (949) 724-3140
THE ESCROW HOLDER IS Commonwealth Land Title Company WHICH IS LICENSED BY
THE CALIFORNIA DEPARTMENT OF INSURANCE.
CONTRACT AGREEMENT COMMERCIAL ESCROW INSTRUCTIONS
THIS DOCUMENT WILL AFFECT YOUR LEGAL RIGHTS - READ IT CAREFULLY!
Address: 855 &875 Alabama St., Redlands CA
APN: 0169-362-11, 13 Escrow No. 09290256-918-GKD
Grace Kim
Escrow Officer Date: December 6, 2013
These instructions are entered into pursuant to that certain AGREEMENT FOR PURCHASE AND SALE OF AN
EASEMENT DATED NOVEMBER 19, 2013, executed by
City of Redlands, a municipal corporation (BUYER) and
William E. Miles and Marion S. Miles, Trustees of the MILES FAMILY TRUST, dated May 5,
2000 and Betty.loan Schlaberg, Trustee of the Warren C. Schlaberg Exemption Trust under the
WARREN C. SCHLABERG AND BETTY 30AN SCHLABERG 2000 REVOCABLE TRUST
(SELLER)
A) As Escrow Holder you shall be concerned only with those specific provisions as set forth in the
Agreement where Escrow Holder is given instructions to perform certain acts or with those paragraphs
where Escrow Holder would generally and reasonably be expected to act. All other provisions of the
Agreement, which the parties consider to be binding upon themselves, are considered to be outside the
scope of the Escrow Holder's responsibilities.
B) The total consideration for this transaction is $75,390.00
ADDITIONAL INSTRUCTIONS
1. DATE CLARIFICATION: For the purposes of this Escrow (and in accordance with the provisions of the
Agreement), the Parties hereto acknowledge the following:
a. "Opening of Escrow" is December 6, 2013
b. "Agreement Date" is November 19, 2013
c. "Close of Escrow"date is on or before: For the purposes of closing this escrow, all parties
acknowledge that"close of escrow" shall be the date on which the Deed conveying title (along with
any financing documents) is recorded.
2. LEGAL DESCRIPTION: It is hereby acknowledge that the Legal Descriptions for the Deeds set forth in
the Agreement are deemed approved pursuant to Seller's execution of the Deeds in favor Buyer, and
Buyer's execution of the Certificates of Acceptance of said Deeds.
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Escrow No.: 09290256-918-GKD
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IMPORTANT NOTICE REGARDING DEPOSIT OF FUNDS FOR CLOSING:
Funds received by WIRE TRANSFER are available for immediate disbursement at the close of
escrow. Other forms mfpayment deposited may cause extended delays in closing. Escrow
Holder will not beresponsible for any such delays due Kmthe type of deposKtsmmade- Therefore,
we strongly urge any deposits made for closing funds to be in the form of a wire transfer.
Please contact your sscmmm« officer for our wiring instructions, or if you have any questions
regarding this notice.
4. FEES AND CHARGES: Escrow Holder is authorized and instructed to charge Buyer's account at the
close of escrow with the respective costs as provided for in the "Agreement" and as per the estimated
dosing statement to be approved prior to the close of escrow.
S. MONETARY LIENS OR ENCUMBRANCES OF RECORD: Prior to dose of Escrow, Escrow Holder is
authorized and instructed to obtain beneficiary statements, demands and/or cause the reconveyance,
partial reconveyance, or subordination, as the case may be, of any monetary exception or on any
matter of record required to place title in the condition called for pursuant to the Agreement.
6. TAX EXEMPT ENTITY: All parties hereto acknowledge that the buyer is public entity and exempt from
payment of any real property taxes. There will be no proration of taxes through escrow. Seller will be
responsible for payment of any real property taxes due prior to dose of escrow. In the event any real
property taxes are due and unpaid at the dose of escrow, Escrow Holder is hereby authorized and
instructed to pay such taxes from proceeds due the Seller at the dose of escrow. Seller understands
that the Tax Collector will not accept partial payment of an installment of the real property taxes due at
the close of escrow. At the close of escrow, the Buyer will file any necessary documentation with the
County Tax Collector/Assessor for the property Lax exemption.
7. GENERAL PROVISION ACKNOWLEDGMENT: By their signatures below, Buyer and Seller
acknowledge and agree that the General Provisions are incorporated herein and made part hereof.
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Escrow No.: 09290250-918-GKD
COMMONWEALTH LAND TITLE COMPANY GENERAL PROVISIONS
Please read this important information
(Revised June,2013)
s. DEPOSIT OF FUNDS
The law dealing with the disbursement o[funds requires that all funds beavailable for withdrawal asamatter nfright bythe
title entity's escrow and/or sub escrow account prior to disbursement of any funds. Only cash or wire-transferred funds can
he given immediate i| bU deposit. Cashier'schecks, Uchecks
Commonwealth Land Title Company which clear through the California Federal Reserve District 12, may be
available one business day after deposit. All other funds such as personal, corporate or partnership checks and drafts are
subject to mandatory holding periods which may cause material delays in disbursement of funds in this escrow. In order to
avoid delays, all fundings should be wire transfer. Outgoing wire transfers will not be authorized until confirmation of the
respective incoming wire transfer or of availability of deposited checks. Parties are aware and understand the California
Insurance Code Section 12413.1 (also known as"Good Funds").
Devosit of funds into Qeneral escrow trust account unless instructed otherwise. You may instruct Escrow Holder to deposit
your funds into an interest bearing account by signing and returning the 'Notice of Opportunity to Open Interest Bearing
Account", which has been provided to you. If you do not so instruct us, then all funds received in this escrow shall be
deposited with other escrow funds in one or more general escrow trust accounts, which include both non-interest bearing
demand accounts and other depository accounts of Escrow Holder, in any state or national bank or savings and loan
association insured by the Federal Deposit Insurance Corporation (the "depository institutions") and may be transferred to
any other such escrow trust accounts of Escrow Holder or one of its affiliates, either within or outside the State of California.
A general escrow trust account is restricted and protected against claims by third parties and creditors of Escrow Holder and
its affiliates.
Receijot of benefits by Escrow Holder and affiliates. The parties to this escrow acknowledge that the maintenance of such
general escrow trust accounts with some depository institutions may result in Escrow Holder or its affiliates being provided
with an array of bank services, accommodations or other benefits by the depository institution. Some or all of these benefits
may be considered interest due you under California Insurance Code Section 12413.5. Escrow Holder or its affiliates also
may elect to enter into other business transactions with or obtain loans for investment or other purposes from the
depository institution. All such services, accommodations, and other benefits shall accrue to Escrow Holder or its affiliates
and Escrow Holder shall have no obligation to account to the parties to this escrow for the value of such services,
accommodations, interest or other benefits.
Said funds will not earn interest unless the instructions otherwise ifica|ly state that funds shall be deposited in an
interest-bearing account. All disbursements shall be made by check of Commonwealth Land Title Company.The principals to
this escrow are hereby notified that the funds deposited herein are insured only to the limit provided by the Federal Deposit
Insurance Corporation. Any instruction for bank wire will provide reasonable time or notice for Escrow Holder's compliance
with such instruction. Escrow Holder's sole duty and responsibility shall be to place said wire transfer instructions with its
wiring bank upon confirmation of (1) satisfaction of conditions precedent or (2) document recordation at close of escrow.
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 regard to placement of wires.
In the event there is insufficient time m place o vino upon any such confirmation or the wires have closed for the day, the
parties agree to provide written instructions for an alternative method of disbursement. WITHOUT AN ALTERNATIVE
DISBURSEMENT INSTRUCTION, FUNDS WILL BE HELD IN TRUST IN A NON-INTEREST BEARING ACCOUNT UNTIL THE NEXT
OPPORTUNITY FOR WIRE PLACEMENT.
2. PRoRArmNS AND ADJUSTMENTS
All pm,aunns and/or adjustments called for in this escrow are to be made on the basis of tb|nv (]o) day month unless
otherwise instructed in writing. You are to use information contained on last available tax statement, rental statement as
provided by the Seller, beneficiary's statement and fie insurance policy delivered into escrow for the pmrauuns provided for
herein.
z. GENERAL/SPECIAL PROPERTY TAXES, SUPPLEMENTAL TAX BILLS, BONDS AND ASSESSMENTS
General/Special Property Taxes: Escrow holder shall prorate general and special taxes for the current fiscal year, bused
on the most recent and available tax bill from the County Assessor's for this subject property.
Supplemental Taxes:Buyer is advised the County Tax Assessor will revalue property which changes ownership or contains
new construction, and this revaluation may result in a supplemental assessment. The supplemental taxes will be assessed
from the date of the change in ownership or completion of construction. /n addition, a lien of supplemental taxes for the
current fiscal year, if any, assessed pursuant to Chapter 3.5 (commencing with Section 75) of the California Revenue and
Taxation Code will he prorated at the close of escrow.
Bonds and Assessments:All existing unpaid bonds and assessments levied or assessed prior oothe date ofthe close of
escrow shall be pmurated, based upon the latest available public information. Any assessments mage by the Tax Assessor
prior to closing but not part of the public records and not disclosed by the Seller in writing to escrow holder, including but
not limited to: weed abatement and code violations, shall not be the responsibility ofescrow holder and will not be included
in any pmo`uunsatclosing. The parties agree to make any adjustments outside of escrow.
Refunds: Any tax refunds issued to Seller outside of this escrow by the Tax Collectors office which are not of public record
and are not disclosed in writing to escrow holder prior to the close of escrow, shall not be the responsibility of escrow holder
in the proration calculations used for the dosing ofthis transaction. The parties are to make any adjustments OUTSIDE OF
THIS ESCROW and agree the escrow holder shall have no responsibility regarding same, It is the sole responsibility of the
Seller mdisclose tnthe Buyer ifsuch arefund isreceived.
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Escrow No.: 09290256'918-GKD
Any tax bills, supplemental tax mos, bonds and assessments issued, levied or adjusted after the mpme of this
transaction shall behandled directly between Buyer and Seller,outside vfescrow.
v' UTILITIES/POSSESSION
Transfer nfutilities and possession of the premises are to be settled by the parties directly and outside escrow.
S. PREPARATION AND RECORDATION orINSTRUMENTS
Escrow Holder /sauthorized to prepare, obtain, record and deliver the necessary instruments ,ocarry out the terms and
conditions of this escrow and to order the policy of title insurance to be issued at close of escrow as called for in these
instructions. Close ofescrow shall mean the date instruments are recorded.
a. SPECIAL RECORDING; LATE CONFIRMATION OFRECORDING
Seller's proceeds may not be available, and encumbrances may not be paid u[t until the first business day following the day
of recording if 1) documents recorded atclose vfescrow one recorded later in the day than 8:00a.m. (which is called u
,special recording") orif2) the County Recorder does not provide confirmation of recording within sufficient time to allow
same-day disbursement offunds bywire orcheck.
r AUTHORIZATION TO FURNISH COPIES
You are authorized to furnish cop/es of these instructions' supp|ements, amendments' notices of cancellation and closing
statements, to the Real Estate/Mortgage Broker(s) and Lender(s) named in this escrow. Any request ho,duvUcatecopesnf
the file orany documentation within the file, after the close of escrow, is subject to an additional work charge of$25.U0.
8. FEES PAID IN ADVANCE:
Escrow holder is instructed to use Buyer's funds deposited into escrow to pay any advanced fees required prior to dose of
escrow for such items as, but not limited to, charges by a Homeowners Association or their designated management
company for ordering documents, lender's h for payoff statement, or city's charge for
related thereto. You are authorized, atthe close o[escrow, to charge the appropriate party for any fees advanced. In the
event escrow should cancel, Buyer and Seller agree to handle the exchange of any documents' inspections, reports and/o,
funds advanced,outside nfthis escrow. Escrow holder shall not be held liable or responsible for the reimbursement of funds
advanced o,the return of any documentation provided to Buyer.
a. FEES, CHARGES AND MESSENGER FEES
Escrow,Title and Overnight Fees are to he charged to the principals'accounts in accordance with the posted rates filed with
the Department of Insurance. The charges which the Company will make for sending documents and/or checks via
overnight services shall bethe amount actually billed providing a bill is secured by escrow holder. Special messenger fees
will becharged atthe actual cost ofthe messenger service, Recording charges are mbecharged,nthe principals'accounts
in accordance with customary practices in this County, unless Escrow Holder is instructed toUootherwise in writing.
zo. RIGHT OF CANCELLATION
Any principal instructing you to cancel this escrow shall file notice of cancellation in your office in wr|Ung, You shall, within
two (2) working days thereafter, de|iverone copy of such notice to each of the other principals at the addresses stated in
this escrow. UNLESS wnrrTEm 0B]E[Tl0m TO [Am[sLLxTl0m IS Fz'sn /N YOUR Oppz[E BY PRINCIPAL WITHIN TEN (nD
DAYS AFTER oxTe OF SUCH MAILING, YOU ARE AUTHORIZED TO COMPLY WITH SUCH N0Tz[s AND oEMxmo PAYMENT OF
YOUR CANCELLATION CHARGES. If written objection is filed, you are authorized to hold all money and instruments in this
escrow and take nofurther action until otherwise dieued, either by the principals' mutual written instructions, or by final
order ofpcourt ofcompetent jurisdiction.
11. RIGHT OF RESIGNATION
Escrow Holder has the right to resign upon written notice delivered to the principals herein. If such right is exercised, all
funds and documents shall be returned to the party who deposited them and Escrow Hn|do, shall have no liability
hereunder.
12. HAZARD INSURANCE POLICIES
Buyer shall obtain Fire/Hazard Insurance coverage, ifapplicable, onthe subject property prior uothe close nfescrow, aeper
requirements of the new lender. If Buyer has not paid policy premium prior to close of escrow, Escrow Holder is authorized
and instructed todebit Buyer's account with the cost of the annual premium and pay such premium to the insurance agent
and/or company, at the close of escrow, from funds deposited by Buyer. Escrow Holder is instructed to request that the
insurance company deliver the onginal policy and copies, as required, to all necessary parties. In the event the property is
covered by a blanket insurance policy, Buyer shall provide Escrow Holder with a Certificate or Insurance. FAILURE TO
PROVIDE FIR[Ynxzxno INSURANCE WILL DELAY THE [u05s OF ESCROW. Escrow Holder has no obligation to obtain Me or
other insurance inthe absence orowritten instruction todoso.
Further, there shall beno responsibility the part ofEscrow Holder to renew hazard /nsurancevo|icy(s) upon expiration
or otherwise keep it in omoe either during o, subsequent to the dose of escrow. Cancellation of any ex/sung hazard
insurance policies is to be handled directly by the principals, and outside of escrow.
13. ACTION IN INTERPLEADER
The principals hereto expressly agree that you, as Escrow Holder, have the absolute right atyour election to file an action in
interpleader requiring the i i | to answer and litigate their | claims and rights among themselvesd you are
authorized to deposit with the clerk of the court all documents and funds held in this escrow. In the event such action is
filed, the principals jointly and severally agree to pay your cancellation charges and costs, expenses and reasonable
attorney's fees which you are required to expend or incur in such interpleader action, the amount thereof to be fixed and
judgment therefore to be rendered by the court. Upon the filing of such action, you shall thereupon be fully released and
discharged from all obligations imposed by the terms of this escrow or otherwise,
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Escrow No.: 09290256-918-GKD
14. TERMINATION OFAGENCY OBLIGATION
If there is no actionken on this within
instructions or written extension thereof, your agency obligation shall terminate at your option and all documents, monies
or other items held by you shall be returned to the parties depositing same. In the event of cancellation of this escrow,
whether it be at the request of any of the principals or otherwise, the fees and charges due Commonwealth Land Title
Company, including expenditures incurred and/or authorized shall be borne equally by the parties hereto (unless otherwise
agreed to specifically).
15. CONFLICTING INSTRUCTIONS/DISPUTES
Upon receipt of any conflicting instructions, you are to take no actino in connection with this escrow until non-conflicting
instructions are received from all nfthe principals tothis escrow (subject ).
No notice, demand orchange ofinstruction shall be of any effect in this escrow unless given in °r|uny by all parties affected
thereby. In the event demand for funds and/o,documents deposited with Escrow Holder in connection with this escrow is
made and which /s not concurred in by all parties hereto' Escrow Holder, notwithstanding which party made such demand,
may elect ooUoany ofthe following:
(|) Take no further action in connection with this escrow and continue to hold such funds and/o, documents until
receipt of mutual concurring instructions from all parties to this escrow as to the disposition of such funds and/or
documents;
(ii)Commence an action in interpleader and obtain an order from the court allowing Escrow Holder tudeposit such
funds and/or documents with the court, in which case Escrow Holder shall have no further liability or obligations
with respect»othis escrow; or
(iii)In the event that any party commences an action against any other party with respect to this escrow, deposit such
funds and/or documents with the court' in which case Escrow Holder shall have no further liability or obligations
with respect^othis escrow.
In the event Escrow Holder interpleads any funds and/o,documents with any court pursuant toeither subparagraphs V0 or
(iii) above, Escrow Holder shall be entitled to reimbursement o[ its reasonable attorneys' fees and expenses of litigation in
connection with such action and any cancellation or work charges incurred during the transaction.
16' REIMBURSEMENT ATTORNEY FEES/ESCROW HOLDER
In the event that a suit is brought by any party or parties to these escrow instructions to which the Escrow Holder is named
as a party which results /n mJudgmeot /n favor ofthe Escrow Holder and against o principal or rinci | herein, the
principals o, principals' agent agreeto pay said Escrow Holder all costs, expenses and reasonable attorney's fees which it
may expend or incur in said suit, the amount thereof to be fixed and judgment therefore to be rendered by the court in said
suit.
17. DE LIVERY/RECEIPT
Delivery to principals as used in these instructions, unless otherwise stated, shall he by personal delivery to the principal,
regular mail, email or fax to any of the contact information provided in these instructions. If delivered by regular mu||'
receipt isdetermined,obe 72 hours after such maUmg All notices, change ofinstructions, communications and documents
addressed to Escrow Holder are to be delivered in writing to the office of Commonwealth Land nda Company at the address
as set forth in these instructions.
18. STATE/FEmERmLmmDE NOTIFICATIONS
1099 Reportina: According to Federal Law. the Seller, when applicable, will be required to furnish escrow holder with
sufficient information in order to file a 1099 statement to the Internal Revenue Service.
PCOR FORM: Prior to the close of escrow, Buyer may hand Escrow Holder a fully completed and executed "Preliminary
Change of Ownership Report" (PCOR) pursuant to the requirements of California Revenue and Taxation Code Section 480.3.
Buyer may elect not to complete and execute said form prior to the close of escrow. Should Buyer choose not to execute the
PCOR or should the County Recorder's office reject the PCOR for any reason, Buyer is aware that a $20.00 charge will be
assessed by the County Recorder's office and Escrow Holder will charge the account of Buyer accordingly. In the event the
PCOR has not been filed at the time the documents record OR the County Tax Assessors office determines that the form has
not been properly completed, Buyer will be responsible for obtaining and completing a new PCOR and any additional
documents that may be required by the Assessor's office. Failure to file a proper PCOR will result in additional penalties in
accordance with Section 480 of the California Revenue and Taxation Code. Escrow Holder's sole duty shall be the delivery of
the PCOR to the County Recorder at the time of recordation of transfer documents, if it is provided to Escrow Holder. Escrow
Holder assumes no liability or responsibility regarding the proper completion of the PCOR.
NON-RESIDEIVT ALIEN (FIRPTA): The Foreign Investment in Real Property Tax Act (FzRprx)' nde 26 U.S.[.. Section
1445' and the regulations there under, provide in part' that transferee (buyer) of U.S. real o,npeuv interest from a
foreign person (non-resident alien) must withhold a tax equal to ten percent (109a) of the amount realized on the
disposition, report the transaction and remit the withholding to the Internal Revenue Service within twenty (zO) gnyo after
the transfer. Commonwealth Land Title Company has not and will not participate in any determination of whether the
pznPTA tax provisions are applicable to the subject transaction, nor act as a Qualified Substitute nor furnish tax advice to
any party to the transaction. Commonwealth |ovd Title Company is not responsible for determining whether the transaction
will qualify for an exception or an exemption and is not responsible for the MUny of any tax forms with the Internal Revenue
Service as they relate to pzRPTA. Commonwealth Land Title Company is not the agent for the buyer for the purposes of
receiving and analyzing any evidence or documentation that the Seller in the subject transaction is U.S. citizen or resident
alien. The buyer is advised they must independently make a determination of whether the contemplated transaction is
taxable or non-taxable and the applicability of the withholding requirement to the subject transaction, and should seek the
advice oftheir attorney or accountant. Commonwealth Land Title company is not responsible for the payment of this tax
and/or and penalty and/or interest incurred in connection therewith and such taxes are not a matter covered by the Owner's
Policy of Title Insurance to be issued to the Buyer. The Buyer is advised they bear full responsibility for compliance with the
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Escrow No.: 09290256-918-GKD
tax withholding requirement if applicable and/or for payment of any tax, interest, penalties and/or other expenses that may
bedue vnthe subject transaction.
CALIFORNIA WITHHOLDZNG: In accordance with Section 18662 of the Revenue and Taxation [oda a buyer b
, vve, mey e
required to w|txxnm an amount equal to z 1/3 percent of the sales price or the amount that is specified /n a written
certificate executed by the transferor in the case of a disposition of California real property interest by either:
1. A seller who is an individual, trust, or estate or when the disbursement instructions authorize the proceeds to be sent to
afinancial intermediary ofthe seller, 0e
2. A corporate seller that has no permanent place of business in California immediately after the transfer of title to the
California real property.
The buyer may become subject to penalty for failure to withhold an amount equal to the greater of zO percent of the
amount required to be withheld or five hundred dollars ($500).
However, notwithstanding any other provision included in the California statutes referenced abnve, no buyer will be required
tnwithhold any amount orbesubject vnpenalty for failure towithhold if:
z. The sales price of the California real property conveyed does not exceed one hundred thousand dollars($100,000), OR
2. The seller executes a written certificate, under the penalty of perjury, certifying that the seller |sa corporation with a
permanent place ofbusiness |nCalifornia, On
3. The seller, who is an individual, trust, estate or a corporation without a permanent place of business in California
executes a written certificate, under the penalty ofperjury, of any ofthe following:
A. The California nel property being conveyed isthe seller's or decedent's principal residence (within the meaning of
Sect/on 121 of the Internal Revenue Code).
B. The last use of the property being conveyed was use by the transferor as the transferor's principal residence within
the meaning ofSection z2zofthe Internal Revenue Code.
C. The California real property being conveyed isorwill be exchanged for property o[like kind (within the meaning of
Section 1031 of the Internal Revenue Code)' but only to the extent of the amount of gain not required to be
recognized for California income tax purposes under Section 1031 of the Internal Revenue Code.
D. The California real property has been compulsorily or involuntarily converted (within the meaning of Section 1033
of the Internal Revenue Code) and that the seller intends to acquire property similar or related in service or use so
as to beeligible for nonrecognition of gain for California income tax purposes under Section 1033 of the Internal
Revenue Code.
E. The California real property transaction will result in a loss ora net gain not required tnberecognized for California
income tax purposes.
The seller is subject to penalty for knowingly filing a fraudulent certificate for the purpose of avoiding the withholding
requirement.
The California statutes referenced above include provisions which authorize the Franchise Tax Board to grant reduced
withholding and waivers from withholding on a case-by-case basis for corporations v,other entities.
Buyer understands that in no event will Escrow Holder undertake to advise Buyer and/or Buyer's representative on the
possible application of the above code sections to this specific transaction. Unless expressly instructed by Seller and Buyer
herein, Buyer understands that Escrow Holder will NOT assist|o obtaining a waiver from withholding from the Franchise Tax
Board.
Should Buyer and Seller herein direct Escrow Holder to undertake any activities pursuant to the withholding provisions
under California law, Buyer and Seller agree to cooperate fully in providing necessary information to Escrow Holder. Buyer
and Seller agree »o indemnify and hold Escrow Holder harmless in the event o[ noncompliance resulting from information
supplied by either Buyer and/or SeUer, For additional information concerning the withholding provisions under the code
sections referenced above, please contact the Franchise Tax Board-Withhold-at-Source Unit at (88a) 792-4900. P.O. Box
s5z, Sacramento, Cx95Oz2'O65z. Web address: aAwu�b.ca.gov
19. smCumgRAmCsm
Escrow Holder |stoact upon any t t t furnished by |ienho|deror his agent without liability n,responsibility for the
accuracy of such statements. Any adjustments necessary because of a discrepancy between the mfnnnaunn furnished
Escrow Holder and any amount later determined to becorrect shall be settled between the parties direct and outside of
escrow,
You are autho,ized, without the need for further approval, to debit my account for any fees and charges that have agreed
to pay in connection with this escrow, and for any amounts that z nm obligated to pay to the holder of any lien or
encumbrance to establish the title as insured by the policy of title insurance called for in these instructions. If for any reason
my account is not debited for such amounts at the time of closing, I agree to pay them immediately upon demand' or to
reimburse any other person orentity who has paid them.
20. ENVIRONMENTAL ISSUES
Escrow Holder hos made no investigation concerning said property as to environmental/toxic waste issues, Any due
diligence required or needed to determine environmental impact as to forms of uoxi5cemon' if appocah|e, will be done
directly and by principals outside of escrow. Escrow yo|dm, is released of any responsibility and/or liability in connection
therewith,
21. USURY
Escrow Holder /s not to be concerned with any questions of usury in any loan or encumbrance involved in the processing of
this escrow and is hereby released of any responsibility or liability therefore.
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Escrow No.: 09290256-918-GKD
22. DISCLOSURE
Escrow Holder's knowledge ufmatters affecting the property, provided such facts do not prevent compliance with these
instructions, does not create any liability or duty in addition to these instructions.
23. FACSIMILE/ELECTRONIC SIGNATURE
Escrow Holder isauthorized and instructed that, in the event any party utilizes "facsimile" transmitted signed documents
or instructions to Escrow Holder, you are to rely on the same for all escrow instruction purposes and the closing «
i f'asonw
as if they bore original signatures. "Electronic
Signature"means,as applicable, an electronic copy nrsignature complying with California Law.
o4. CLARIFICATION«»F DUTIES
Legal Advice: Commonwealth Land Title Company serves ONLY as an Escrow Holder in connection with these instructions
and cannot give legal advice toany party hereto.
Sufficiency/Correctness: Escrow Holder is not to be held accountable or liable for the sufficiency or correctness as to form,
manner of execution, or validity of any instrument deposited in this escrow, nor as to the identity, authority or rights of any
person executing the Escrow Holder's duties hereunder shall be limited to the proper handling of such money and the
proper safekeeping of such instruments, o,other documents received by Escrow Holder, and for the disposition of same in
accordance with the written instructions accepted by Escrow Holder.
Executed Instructions: The agency and duties of Escrow Holder commence only upon receipt o[ copies of these Escrow
Instructions executed by all parties.
No Duty To Notify As To Other Transaction: Escrow Holder shall have o duty or responsibility to notify any party to this
escrow of any sale, resale, loan, exchange or other transaction involving the property which is the subject of this escrow or
any profit realized by any person or entity in connection therewith, notwithstanding that Escrow Holder may act as escrow
holder for such transaction(s) in this oranother escme(s).
Record Retention: After the closing orcancellation nfthis escrow, Escrow Holder shall retain the escrow fi|e(s) pertaining m
this escrow for a minimum of five (5) years, after which time Escrow Holder is authorized to destroy or otherwise dispose of
such file(s) without notice or liability to the parties hereto.
Disclosure Reports: Escrow Holder is not to be concerned with disclosures made by the parties to each other. In the event
Escrow Holder receives any disclosure reports requiring signatures or approval by a pony, Escrow Holder's only
responsibility will beuzforward the report tothe appropriate party.
25' FAILURE TO CLOSE TIMELY
If the conditions for closing this escrow have not occurred at the time set forth herein for closing, Escrow Holder is
nevertheless tocontinue to act hereunder and to dose this escrow as soon thereafter as such conditions (except as to time)
shall have been mat' unless any party shall have made a written demand on Escrow Holder for cancellation of this escrow
and/or for the ngum nfany funds and/or documents deposited by such party.
2s. FUNDS HELD xNESCROW
When the company has funds | i in escrow over 90 days after dose of escrow or estimated dose of escrow, the
Company shall impose a monthlyholding fee f$25.00 that is to be charged against thefunds held by the Company. Any
funds remaining in the file or principals failure to negotiate funds issued by escrow holder may result in the funds being
escheated to the State of California's Unclaimed Property. This process includes a due diligence period through our local
and corporate offices. Any refunds requested during this process may take up to 6 months. Refunds requested through the
State of California are not controlled by escrow holder. For more information about the State of California Unclaimed
property visit:
THIS AGREEMENT IN ALLPARTS APPLIES TO, INURES TO THE BENEFIT OF, AND BINDS ALLPARTIES HERETO, THEIR
*sznG' LEGATEES, DE\uSss5' ADMINISTRATORS, EXECUTORS, 5U[[ESGonS AND ASSIGNS, AND wnEmEvsn THE
CONTEXT SO REQUIRES THE MASCULINE GENDER INCLUDES THE FsmIwlms AND NEUTER, AND THE SINGULAR mumBc*
INCLUDES THE PLURAL. r*E3s zm5TKu[rzQm3 AND ANY OTHER AMENDMENTS MAY BE ExscuTsn IN ANY NUMBER OF
COUNTERPARTS, EACH OF WHICH SHALL BE [OmSzoEnEo AS AN ORIGINAL AND BE ErrE{7Ive AS SUCH.
MY SIGNATURE HERETO CONSTITUTES INSTRUCTION TO ESCROW HOLDER OF ALL TERMS AND CONDITIONS CONTAINED
IN THIS AND ALL PRECEEDING PAGES AND FURTHER SIGNIFIES THAT z HAVE nsAo AND UNDERSTAND THESE Gemse^L
PROVISIONS.
Commonwealth Land Title Company conducts escrow business under Certificate of Authority No. 285
issued by the California Department of Insurance.
Initials _��-�_ _____ _____ _____ Page 7
Escrow No.: 09290256-918-GKD
BUYER SELLER
City of Redlands, a municipal corporation William E. Miles and Marion S. Miles,
Trustees of the MILES FAMILY TRUST,
dated May 5, 2000 and Betty]oan
Schlaberg, Trustee of the Warren C.
By: Schlaberg Exemption Trust under the
Name: Pete Aguilar WARREN C. SCHLABERG AND
Its: Mayor BETTY 30AN SCHLABERG 2000
REVOCABLE TRUST
ATTEST:
William E. Miles, Trustee
Sam IrAW, CAty Clerk Marion S. Miles, Trustee
Betty Joan Schlaberg,Trustee
Initials
Page 8
Commonwealth Land Title Company
Commonweami 4100 Newport Place Dr, Suite 120
Newport Beach, CA 92660
LAND TITLE COMPANY Phone: (949) 724-3140
Grace U. Kim, Commercial Escrow Officer
Phone: (949) 724-3141 - Fax: (714) 459-7217
e-mail: g.gkiml@lt-tc.com
PRELIMINARY REPORT V1 APPROVAL 77-1
Escrow Number: 09290256-918-GKD
Title Order Number: 9307756
Date: December 9, 2013
The undersigned acknowledge that they have read and received a copy of the Preliminary
Report V1 dated April 4, 2013 of Title issued by Commonwealth Land Title Company under
the above referenced order number and hereby approve same in its entirety.
At the close of escrow, the Policy of Title Insurance issued in connection with this
transaction will contain only the following items: 1-10 , PLUS
those items that will reflect the documents being recorded through this escrow.
City of Redlands, a municipal corporation
A
tj
By:
Name:Pete ftuilar
Its: Mayor
ATTEST
Sam IrwW 9ty Clerk
Lawyers T�� Company
14yy 41OONewpo/tNaceDhve
Suite 120
Newport Beach, CA9Z660
Phone: (949) 724-317O
Paragon Partners, LTD Our File No: 09307756
5762 Bolsa Ave #201 Title Officer: Chris Maziar
Huntington Beach, CA 92649 e'mai|: unit10@|Uc.com
Phone: (949) 724-317U
Attn: Michael Boss Fax: (949) 258-5740
Your Reference No: 0169-362'13
Property Address: 855 &875 ALABAMA STREET AND 1600 & 1625 INDUSTRIAL PARK AVENUE,
City UfRedlands, California
PRELIMINARY REPORT V1
Dated asofApril 4, ZU13atJ:3Oa.m.
In response to the application for a policy of title insurance referenced herein, Lawyers Title
Company hereby reports that it is prepared to issue, or cause to be issued, as of the date hereof, a
policy or policies of title insurance describing the land and the estate or interest therein hereinafter
set forth, insuring against loss which may be sustained by reason of any defect, lien or encumbrance
not shown or referred to as an exception herein or not excluded from coverage pursuant to the
printed Schedules, Conditions and Stipulations or Conditions of said policy forms.
The printed Exceptions and Exclusions from the coverage and Limitations on Covered Risks of said
policy urpolicies are set forth in Attachment One. The policy to be issued may contain an arbitration
clause. When the Amount of Insurance is less than that set forth in the arbitration clause, all
arbitrable matters shall be arbitrated at the option of either the Company or the Insured as the
exclusive remedy of the parties. Limitation on Covered Risks applicable to the CLTA and ALTA
Homeowner's Policies of Title Insurance which establish a Deductible Amount and a Maximum Dollar
Limit of Liability for certain coverages are also set forth in Attachment One. Copies of the policy
forms should be read. They are available from the office which issued this report.
The policy(s) of title insurance to be issued hereunder will be policy(s) of Commonwealth Land
Title Insurance Company.
Please read the exceptions s#mmm/ or referred to be/oynand the exceptions and exclusions
set forth in Attachment One of this report carefully. The exceptions and exclusions are
meant to provide you with notice ofmatters which are not covered under the terms mfthe
title insurance policy and should becarefully considered. It is important tonote 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 cmthe land.
This report (and any supplements or amendments hereto) is issued solely for the purpose of
facilitating the issuance of policy of title insurance and no liability is assumed hereby. If it is desired
that liability be assumed prior to the issuance of policy of title insurance, a Binder orCommitment
should berequested.
[un Preliminary Report Form- Modified (1/'17'06)
Page
File No: 09307756
SCHEDULE A
The form of policy of title insurance contemplated by this report is:
A Preliminary Report Only
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:
William E. Miles and Marion S. Miles,Trustees of the MILES FAMILY TRUST, dated May 5,
2000, as to 500/o interest and
Betty Joan Schlaberg, Trustee of the Warren C. Schlaberg Exemption Trust under the
WARREN C. SCHLA13ERG AND BETTY JOAN SCHLABERG 2000 REVOCABLE TRUST, as to 50%
interest
The land referred to herein is situated in the County of SAN BERN ARDINO, State of California, and is
described as follows:
SEE EXHIBIT "A" ATTACHED HERETO AND MADE A PART HEREOF
CLTA Preliminary Report Form - Modified (11-17-06)
Page 2
File No: 09307756
EXHIBIT "A"
All that certain real property situated in the County of Redlands, State of
California, described as follows:
Lot 8, Block 1, according to Map of Henry L. Williams Trach Map No. 2, in
the City of Redlands, County of San Bernardino, State of California, as
per Map recorded in Book 11, Page 17 of Vis, in the office of the
County Recorder of said County.
Excepting therefrom that portion described as follows:
The East 80 feet of the Northfeet thereof, as measured from the
West line of Alabama Street.
Also excepting therefrom that portion as conveyed to the State of
Californiaee recorded August 24, 1960 In Book 5220, Page 269 of
Official Records.
Also excepting therefrom those portions as conveyed to the City of
Redlands by Deedsrecorded January 10, 1964 In Book 6064, Page 411
and lanuary 21, 1966 In Book 6556, Page 820 of Official Records.
Assessor's Parcel Number: 0169-361-02; 0169-362-11; 0169-362-12;
0169-362-13
CLTA Preliminary Report Form - Modified (11-17-06)
Page 3
File No: 09307756
SCHEDULE B — Section A
The following exceptions will appear in policies when providing standard coverage as outlined
below:
1. (a) Taxes or assessments that are not shown as existing liens by the records ofany taxing
authority that levies taxes or assessments on naa| 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.
Z. Any facts, rights, interests orclaims that are not shown by the Public Records but that could
be ascertained by on inspection of the Land or that may be asserted by persons in possession
ofthe Land.
3. Easements, liens orencumbrances, orclaims 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 bythe Public Records.
5. (a) Unpatented mining claims; (b) reservations nrexceptions in patents or in Acts authorizing
the issuance thereof; (c) water rights, claims or tide to water, whether or not the matters
excepted under(a), (b) or (c) are shown by the Public Records.
6. Any hen or right to a lien for services, labor ofmaterial not shown by the Public Records
CoA Preliminary Report Form - Modified (11-17-06)
Page
File No: 09307756
SCHEDULE B — Section B
At the date hereof Exceptions to coverage in addition to the printed exceptions and exclusions in
said policy form would be as follows:
A. Property taxes, which are a ||an not yet due and payable, including any assessments collected
with taxes to be levied for the fiscal year 2013-2014.
B. Property taxes, including any personal property taxes and any assessments collected with
taxes, are as follows:
Tax Identification No': 0169-362-11
Fiscal Year: 20I2-2813
1st Installment: $1,042,62, (Paid)
2nd Installment: $1,042.60, (Not paid - Delinquent) (Delinquent after April 10)
Penalty and Cost: $114.25
Homeowners Exemption: * Not Set Out
Code Area: 005-007
Affects: A portion of the Land described herein.
C. Any liens or other assessments, bonds, or special district liens including without limitation,
Community Facility Districts, that arise by reason of any local, City, Municipal or County Project
orSpecial District.
D. The lien of supplemental taxes, if any, assessed pursuant to the provisions of Chapter 3.5
(Commencing with Section 75) of the Revenue and Taxation Code of the State of California.
1. Water rights, claims or title to water, whether or not disclosed by the public records.
2. An unrecorded lease with certain terms, covenants, conditions and provisions set forth therein
osdisclosed bythe document
Entitled: Memorandum ufLease
Lessor: William C. Miles and Imogene Miles, his wife
Lessee: Texaco Inc., a Delaware Corporation
Recording Date: September 11, 1963
Recording No: InBook 5985, Page 33OufOfficial Records
The present ownership of the leasehold created by said lease and other matters affecting the
interest ofthe lessee are not shown herein.
3. Easement(o) for the purpose(s) shown below and rights incidental thereto, as granted in a
document:
Granted to: Southern California Edison Company, o Corporation
Purpose: public utilities
Recording Date: March 25, l966
Recording No: InBook 6595, Page 745nfOfficial Records
Affects: said land more particularly described therein.
4. Intentionally deleted.
CoA Preliminary Report Form - Modified (1/'/7'06)
Page
File No: 09307756
5. Easement(s) for the purpose(s) abovvn below and rights incidental thereto, as granted in a
document:
Granted to: Southern California Edison Company, a Corporation
Purpose: public utilities
Recording Date: December 21, 1976
Recording No: In Book 9077, Page 1374 of Official Records
Affects: said land more particularly described therein.
8. An unrecorded lease with certain terms, covenants, conditions and provisions set forth therein
asdisclosed bythe document
Entitled: Lease Memorandum
Lessor: W.C. Miles and Imogene Miles
Lessee: Donald VV. Callender
Recording Date: ]anoary21, 1977
Recording No: in Book 9098, Page 1453 of Official Records
The present ownership of the leasehold created by said lease and other matters affecting the
interest ofthe lessee are not shown herein.
An agreement to amend or modify certain provisions of said lease, as set forth in the document
executed by:
As Lessor: W.C. Miles and Imogene Miles, husband and wife
As Lessee: Donald VV. Callender
Dated: January 27, 1977
Recording Date: February 3, 1977
Recording No: In Book 9187, Page 302 of Official Records
7. An unrecorded lease with certain terms, covenants, conditions and provisions set forth therein
msdisclosed bythe document
Entitled: Lease
Lessor: Donald W. Callender
Lessee: Marie Callender Ventures, Inc., a wholly owned subsidiary ofMarie
Callender Pie Shops, Inc., aCalifornia Corporation
Recording Date: February 3, l977
Recording No: In Book 9107, Page 314 of Official Records
The present ownership of the leasehold created by said lease and other matters affecting the
interest of the lessee are not shown herein,
8. An unrecorded lease with certain terms, covenants, conditions and provisions set forth therein
aadisclosed bythe document
Entitled: Second Lease Memorandum
Lessor: W.C. Miles and Imogene Miles
Lessee: Donald VV. Callender
Recording Date: May 7, 1980
Recording No: asInstrument No. 8U-1U94O5ufOfficial Records
The present ownership of the leasehold created by said lease and other matters affecting the
interest ofthe lessee are not shown herein.
Lux Preliminary Report Form - Modified (11-17'06)
Page
File No: 09307756
9. An unrecorded lease with certain bsnns, covenants, conditions and provisions set forth therein
asdisclosed bythe ducument
Entitled: Memorandum ofLease
Lessor: William E. Miles and B. ]man Sch|abeng, as to an undivided fifty
percent interest and William E. Miles and B. loan Sch|aberB as
Trustees of Miles Exemption Trust, as to an undivided fifty percent
interest
Lessee: Texaco Refining and Marketing Inc., a Delaware Corporation
Recording Date: June 27, 1994
Recording No: as Instrument No. 94283345 of Official Records
The present ownership of the leasehold created by said lease and other matters affecting the
interest ofthe lessee are not shown herein,
10, An irrevocable offer to dedicate an easement over o portion of said Land for
Purpose(s): public road
Recording Date: August 2, 1995
Recording No: as Instrument No. 19860281632 of Official Records
Affects: said land more particularly described therein.
11. Intentionally deleted.
12. Intentionally deleted.
l3. Intentionally deleted.
13. Intentionally deleted.
14. Intentionally deleted.
15. Intentionally deleted.
16. Intentionally deleted.
17. Intentionally deleted.
[LTA Preliminary Report Form - Modified (11'17'06)
Page
File No: 09307756
I8. Ajudgment for installment payments ofspousal and/or child support, tobemade by:
Debtor: VVU{|am Miles
Creditor: San Bernardino County Department ofChild SupportSenices
Date entered: January Z9, 2OO7
County: San Bernardino
Court: Superior
Case No.: VDA051212
Recording Date: May 15, 2DO8
Recording No: as Instrument No. 2008-0222380 of Official Records
19. Any rights ofthe parties in possession of portion of, or all of, said Land, which rights are not
disclosed bythe public records,
20. Discrepancies, conflicts in boundary lines, shortage in area, encroachments, or any other
matters which a correct survey would disclose and which are not shown by the public records.
21. Any easements not disclosed by the public records as to matters affecting title to real property,
whether ornot said easements are visible and apparent.
22. Matters which may be disclosed by an inspection and/or by s correctALT7yA[SM Land Tide
Survey of said Land that is satisfactory to the Company, and/or by inquiry of the parties in
possession thereof.
23, Any invalidity or defect in the title of the vestaes in the event that the trust referred to herein
is invalid or fails to grant sufficient powers to the trustee(s) or in the event there is a lack of
compliance with the terms and provisions of the trust instrument.
If title is to be insured in the trustee(s) of a trust, (or if their act is to be insured), this
Company will require oTrust Certification pursuant toCalifornia Probate Code Section 181OO.5.
The Company reserves the right to add additional items or make further requirements after
review of the requested documentation.
24. Please be advised that our search did not disclose any open Deeds of Trust of record. If you
should have knowledge of any outstanding obligation, please contact the Tide Department
immediately for further review prior to dosing.
END OF SCHEDULE B EXCEPTIONS
PLEASE REFER TO THE "NOTES AND REQUIREMENTS SECTION- WHICH
FOLLOWS FOR INFORMATION NECESSARY TO COMPLETE THIS TRANSACTION
Cox Preliminary Report Form - Modified (11-17-06)
Page
File No: 09307756
������0�������U��� ������d�U�"
.~~~��~��~�~�~ ~~�~� ~ �� ��~�.~ . �~_.~�
REQ NO.1: The Company will require that it be provided with either (i) a complete copy of the
trust agreement and any amendments thereto certified by the trustee(s) to be a true and complete
copy with respect to the hereinafter named trust, or (|i) a Certification, pursuant to California
Probate Code Section 18100.5, executed by all of the current trustee(s) of the hereinafter named
trust, a form of which is attached.
Trust: Miles Family Trust, dated May 5, 2000
REON{).2: The Company will require that itbeprovided with either (|) acomplete copy ufthe
trust agreement and any amendments thereto certified by the trustee(s) to be a true and complete
copy with respect to the hereinafter named trust, or (ii) a Certification, pursuant to California
Probate [ode Section 18180.5, executed by all of the current trustee(s) of the hereinafter named
trust, a form of which is attached.
Trust: Warren C. Sch|aberg Exemption Trust under the Warren C.
Sch|abeng and Betty loan Sch|abeng 2000 Revocable Trust
Ccn\ Preliminary Report Form - Modified (11-17-06)
Page
File No: 09307756
INFORMATIONAL NOTES SECTION
NOTE NO. 1: The information on the attached plat is provided for your convenience as a guide to
the general location of the subject property. The accuracy of this plat is not guaranteed, nor is it s
part ofany policy, report orguarantee towhich itmay beattached.
NOTE NO. 2: California insurance code section 12413.1regulates the disbursement ofescrow
and sub-escrow funds by title companies. The law requires that funds be deposited in the title
company escrow account and available for withdrawal prior to disbursement. Funds deposited with
the company bywire transfer may be disbursed upon receipt. Funds deposited with the company
via cashier's check or teller's check drawn on a California based bank may be disbursed on the next
business day after the day of deposit. If funds are deposited with the company by other methods,
recording and/or disbursement may bedelayed. All escrow and sub-escrow funds received bythe
company will be deposited with other escrow funds in one or more non-interest bearing escrow
accounts of the company in a financial institution selected by the company. The company may
receive certain direct or indirect benefits from the financial institution by reason of the deposit of
such funds or the maintenance of such accounts with such financial institution, and the company
shall have no obligation to account to the depositing party in any manner for the value of, or to pay
to such party, any benefit received by the company, Those benefits may include, without limitation,
credits allowed by such financial institution on loans to the company or its parent company and
earnings on investments made with the proceeds of such loans, accounting, reporting and other
services and products of such financial institution. Such benefits shall be deemed additional
compensation of the company for its services in connection with the escrow or sub-escrow.
WIRING INSTRUCTIONS FOR THIS OFFICE ARE:
VVe||s Fargo Bank, NA
42OMontgomery St
San Frandecu, [A941D4
ABA# 121U8OJ4@
Credit to: Lawyers Title Company
Account #4122100_614
RE: 09307756-[MC-903
PLEASE INDICATE COMMONWEALTH LAND TITLE COMPANY ESCROW OR TITLE ORDER
NUMBER
NOTE NO. 3: Lawyers Title is a division of Commonwealth Land Tide Insurance Company. The
insurer in policies of title insurance, when issued in this transaction, will be Commonwealth Land
Title Insurance Company.
NOTE NO. 4: Property taxes, including any personal property taxes and any assessments
collected with taxes, are paid. For proration purposes the amounts were:
Tax Identification No.: 0169'361-02
Fiscal Year: 2012-2013
1stInstaKmnenL: $651.36
2nd Installment: $651.31
Exemption: Not Set Out
Code Area: 005-007
Affects: 4portion ofthe Land described herein.
[crA Preliminary Report Form - Modified (11-17-06)
Page 10
File No: 09307756
NOTE NO. 5: Property ,axes, including any personal property taxes and any assessments
collected with taxes, are paid. For proration purposes the amounts were:
Tax Identification No.: 0169-362-12
Fiscal Year: 2812-2013
1st Installment: $8,528.13
2nd Installment: $8,520.09
Exemption: Not Set Out
Code Area: 005-007
Affects: A portion of the Land described herein.
NOTE NO. U: Property taxes, including any personal property taxes and any assessments
collected with taxes, are paid. For proration purposes the amounts were:
Tax Identification Nn.: 0169-362'13
Fiscal Year: 2812-2013
1st Installment: $752.31
2nd Installment: $752.30
Exemption: Not Set Out
Code Area: 005-007
Affects: A portion of the Land described herein.
NOTE NO. 7: The Company requires current beneficiary demands prior to closing. If the demand
is expired and a current demand cannot be obtained, our requirements will be as follows:
a) If the Company accepts a verbal update on the demand, we may hold an amount
equal toone monthly mortgage payment. This hold will be in addition tothe verbal
hold the lender may have stipulated.
b) If the Company cannot obtain a verbal update on the demand, we will either pay
off the expired demand orwait for the amended demand, atour discretion.
C) All payoff figures are verified at closing. If the customer's last payment was made
within 15 days of closing, our Payoff Department may hold one month's payment to
insure the check has cleared the bank (unless a copy of the cancelled check is
provided, in which case there will be no hold).
Typist: tga cmO 7 23 13
Date Typed: April 16, 2Ol3
[ux Preliminary Report Form - Modified (11'17'06)
Page 11
ATTACHMENT ONE
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 toss 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(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 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 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 claim,which arises out of the transaction vesting in the insured the estate of 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-SCHEDULE B,PART I
This policy does not insure against hiss or damage(and the Company will not pay costs,attorneys'fees or expenses)which arise by reason of
L 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,w=hether 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 ofthe land or which
may be asserted by persons in possession thereof.
3. Easements,liens or encumbrances,or claims thereof,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,w=hether or nor the matters excepted under(a),(b)or(c)are shown by the public records.
6. Any lien or right to a lien for services,labor or material not shown by the public records.
Attachment One(Revised 06-03-11)
CA, NV, HI and Guam
Page 12
File No: 09307756
CLIA HOMEOWNER'S POLICY OF TITLE INSURANCE(02-03-10)
ALTA HOMEOWNER'S POLICY OF TITLE INSURANCE
EXCLUSIONS
In addition to the Exceptions in Schedule B,You are not insured against loss,costs,attorneys'fees,and expenses resulting from:
I Governmental police power,and the existence or violation of those portions of any law or government regulation concerning:
a. building;
li. zoning,
C. land use;
d. improvements on the Land-,
e. land division;and
L environmental protection.
This Exclusion does not limit the coverage described in Covered Risk 8.a.,14,15,M 18,M 20,23 or 27.
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
limit the coverage described in Covered Risk 14 or 15.
3. The right to take the Land by condemning it.This Exclusion does not limit the coverage described in Covered Risk 17.
,L Risks:
a. that are created,allowed,or agreed to by You,whether or not they are recorded in the Public Records;
b. that are Known to You at the Policy Date,but not to Us,unless they are recorded 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.e.,25,26,27 or 28.
5. Failure to pay value for Your Title.
6. Lack of 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.
Phis Exclusion does not limit the coverage described in Covered Risk I I or 21
7. The transfer of the Title to You is invalid as a preferential transfer or as a fraudulent transfer or conveyance under federal bankruptcy,state insolvency,
or similar creditors'rights laws.
LIMITATIONS ON COVERED RISKS
Your insurance for the following Covered Risks is limited on the Owner's Coverage Statement as follows:
• For Covered Risk 16,18,19,and 21 Your Deductible Amount and Our Maximurn Dollar Limit of Liability shoum in Schedule A.
The deductible amounts and maximum dollar limits shown on Schedule A are as follows:
Our Maximum Dollar
Your Deductible Arnount Limit of Liabilit
Covered Risk 16: 1.00%of Policy Amount Shown in Schedule A or $1000-000
$2,500,00
(whichever is less)
Covered Risk 18: 1.00%of Policv Amount Shown in Schedule A or S 2000M
55,000.00
(whichever is less)
Covered Risk 19: 1.00°1Q Of Policv Amount Shown in Schedule A or $25,000.00
$5,000.00
(whichever is less)
Covered Risk 2 1: 1,00%of Policy Amount Shown in Schedule A or $5,000.00
$2.500.00
(whichever is less)
Attachment One(Revised 06-03-11)
CA,NX,Ill and Guam)
Page 13
File No: 09307756
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:
I Governmental police power,and the existence or violation of any law or government regulation,This includes building and zoning ordinances and also
]a-,vs 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
1 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 ofCovered-title Risks
4. Failure to pay value for your title.
5. Lack of right:
• to any land outside the area specifically described and referred to in bent 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.
2006 ALTA LOAN POLICY(06-17-06)
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,attomeys'fecs,or
expenses that arise by reason of-
I. (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.
(b) Any governmental police pox-ver.This Exclusion 1(b)does not modify or limit the coverage provided under Covered Risk 6.
1 Rights ofemment 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[)are of Policy(however,this does not modify or limit the coverage provided under Covered Risk H, 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 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 Insured Mortgage in the Public Records. This Exclusion does not modify or limit the coverage provided under Covered Risk
I lib).
The above policy form 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 also include the following Exceptions from Coverage:
EXCEPTIONS FROM COVERAGE
Attachment One(Revised 06-03-11)
CA,INV,HI and Guain)
Page 14
File No: 09307756
This policy does not insure against lass or damage(and the Company will not pay costs,attorneys'fees or expenses)that arise by reason of.
1. (a)Taxes or assessments that are not shown as existing liens by the records of any taxing authority that]cries 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. Arry encroachment,encumbrance.violation,variation,or adverse circumstance affecting the Title that would be disclosed by an accurate and complete
land surrey 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)hater rights,claims or title to
water,whether or not the matters excepted under(a),(b),or(c)are shown by the Public Records.
6. Any lien or right to a lien for services,labor or material not shown by the public records.
2006 ALTA OWNER'S POLICY(06-17-06)
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 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
(i) the occupancy,use,or enjoyment of the Land;
(it) 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 I(a)does not modify or limit the coverage
provided under Coffered Risk 5.
(b) Any governmental police power.This Exclusion l(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&.
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 4 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 4 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 decd or other instrument of transfer in the Public Records that vests Title as shown in Schedule A.
The above policy form 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 also include the following Exceptions from Coverage:
EXCEPTIONS FROM COVERAGE
`This policy does not insure against loss or damage(and the Company will not pay costs,attorneys'fees or expenses)that arise by reason of:
I. (a)Taxes or assessments that 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;(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 in 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.
T Any encroachment,encumbrance,violation,variation,or adverse circumstance affecting the Title that would be disclosed by an accurate and complete
land survey ofthe Land and that are not shown by the Public Records,
5. (a)Unpatented mining claims;(b)reservations or exceptions in patents or in,lets authorizing the issuance thereof.(c)water fights,claims or title to
water,whether or not the matters excepted under(a),(b),or(c)are shown by the Public Records.
6, Any lien or right to a lien for services,labor or material not shown by the public records,
ALTA EXPANDED COVERAGE RESIDENTIAL LOAN POLICY(07-26-10)
EXCLUSIONS FROM COVERAGE
The following matters are expressly excluded from the coverage of this policy and the Company will not pay Iess or damage,costs,attorneys'fees or
expenses which arise by reason of:
I. (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;
(it) 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 I(a)does not modify or limit the coverage
provided under Covered Risk 5,6, 13(c), 13(d),14 or 16.
Attachment One(Revised 06-03-11)
CA,NV,HI and Guam)
Page 15
File No: 09307756
(b) Any governmental police power.This Exclusion I(b)does not modify or limit the coverage provided under Covered Risk 5,6,13(c),13(d),14 or
16.
1 Rights of eminent domain.This Exclusion does not modify or limit the coverage provided tinder 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 tinder 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 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 truffi-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.
T 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 I I(b)or 2.5.
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
building codes.This Exclusion does not modify or limit the coverage provided in Covered Risk 5 or 6.
9. 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 27(b)of this policy.
Attachment One(Revised 06-03-11)
CA,NIA,HI and Guam)
Page 16
File No. 09307756
Notice of Available Discounts
Pursuant to Section 2355.3 in Title 18 of the California Code of Regulations Fidelity National
Financial, Inc. and its subsidiaries ("FNF") must deliver a notice of each discount available
under our current rate filing along with the delivery of escrow instructions, a preliminary
report or commitment. Please be aware that the provision of this notice does not constitute
a waiver of the consumer's right to be charged the filed nate. As such, your transaction may
not qualify for the below discounts.
You are encouraged to discuss the applicability of one or more of the below discounts with a
Company representative. These discounts are generally described below; consult the rate
manual for a full description of the terms, conditions and requirements for such discount.
These discounts only apply to transactions involving services rendered by the FNF Family of
Companies. This notice only applies tVtransactions involving property improved with a one-
to-fourfamily residential dwelling.
FNF Underwritten Title Company FNF Underwriter
LTC - Lawyers Title Company CLTIC - Commonwealth Land Title Insurance Co.
Available Discounts
DISASTER LOANS (CLTIQ
The charge fora Lender's Policy (Standard or Extended coverage) covering the financing or
refinancing by an owner of record, within 24 months of the date of a declaration of a
disaster area by the government of the United States or the State of California on any land
located in said area, which was partially or totally destroyed in the disaster, will be 5096 of
the appropriate title insurance rate.
EMPLOYEE RATE (LTC and CLTIQ
Nocharge shall bemade toemployees (including employees on approved retirement) of the
Company orits underwritten, subsidiary oraffiliated title companies for policies orescrow
services in connection with financing, refinancing, sale or purchase of the employees' bona
fide home property. Waiver of such charges is authorized only in connection with those
costs which the employee would be obligated to pay, by established custom, as party to
the transaction.
Notice ofAvailable oiscoums Mod. 10/21/2011
Page 17
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