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none, Subdividing, Miscellaneous, OtherFidelity National Title Company PRELIMINARY REPORT In response to the application for a policy of title insurance referenced herein, Fidelity National Title Company hereby reports that it is prepared to issue, or cause to be issued, as of the date hereof a policy or policies oftitle 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 ofsaid policy or policies 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. Limitations on Covered Risks applicable to the CLTA and ALTA Homeowner's Policies of Title Insurance which establish a Deductible Amount and aMaximum Dollar Limit ofLiabilityfor 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. This report (and any supplements or amendments hereto) is issued solely for the purpose offacilitating the issuance of a policy of title insurance and no liability is assumed hereby. If it is desired that liability be assumed prior to the issuance of a policy of title insurance, a Binder or Commitment should be requested. The policy(s) of title insurance to be issued hereunder will be policy(s) of Fidelity National Title Insurance Company, a California corporation. Please read the exceptions shown or referred to herein and the exceptions and exclusions set forth in Attachment One of this report carefully. The exceptions and exclusions are meant to provideyou with notice of matters which are not covered under the terms of the title insurance policy and should be carefully considered. It is important to note that this preliminary report is not a written representation as to the condition oftitle and map not list all liens, defects and encumbrances affecting title to the land. Countersigned Fidelity National Title Company BY President ATTEST Secretary IRT [ 17: 1-) JAN 1 u 2011 CLTA Preliminary Report Form - Modified (11/17/06) City of Rolling Hills By Visit Us on our Website: www.fntic.com Fidelity National Title Company ISSUING OFFICE: 1300 Dove Street, Suite 310 • Newport Beach, CA 92660 949 622-5000 • FAX Call for Fax PRELIMINARY REPORT Title Officer: Steven Ball Title No.: 10-725134625-SB Locate No.: CAFNT0972-0972-0051-0725134625 TO: California JPIA c/o Lazzaretto & Associates La Puente, CA 91746 ATTN: Andy Lazzarretto YOUR REFERENCE: Parcel C PROPERTY ADDRESS: Palos Verdes Peninsula, Rolling Hills, California EFFECTIVE DATE: December 9, 2010, 07:30 A.M. The form of policy or policies of title insurance contemplated by this report is: CLTA Standard Coverage Policy - 1990 ALTA Loan Policy (6/17/06) 1. THE ESTATE OR INTEREST IN THE LAND HEREINAFTER DESCRIBED OR REFERRED TO COVERED BY THIS REPORT IS: A Fee 2. TITLE TO SAID ESTATE OR INTEREST AT THE DATE HEREOF IS VES I ED IN: CITY OF ROLLING HILLS, a municipal corporation 3. THE LAND REFERRED TO IN THIS REPORT IS DESCRIBED AS FOLLOWS: SEE EXHIBIT "A" ATTACHED HERETO AND MADE A PART HEREOF 1 MH\MH 12/14/2010 CLTA Preliminary Report Form - Modified (11/17/06) Title No. 10-725134625-SB Locate No. CAFNT0972-0972-0051-0725134625 LEGAL DESCRIPTION EXHIBIT "A" THE LAND REFERRED TO HEREIN BELOW IS SITUATED IN THE CITY OF ROLLING HILLS, COUNTY OF LOS ANGELES, STATE OF CALIFORNIA, AND IS DESCRIBED AS FOLLOWS: THAT PORTION OF LOT "H" OF THE RANCHO LOS PALOS VERDES, IN THE CITY OF ROLLING HILLS, COUNTY OF LOS ANGELES, STATE OF CALIFORNIA, ALLOTTED TO JOTHAM BIXBY, BY DECREE OF PARTITION IN CASE NO. 2373, OF THE DISTRICT COURT OF THE 17TH JUDICIAL DISTRICT, AND ENTERED IN BOOK 4, PAGE 57 OF JUDGMENTS, IN THE SUPERIOR COURT OF SAID COUNTY, BOUNDED BY THE FOLLOWING DESCRIBED LINES: BEGINNING AT THE MOST SOUTHERLY CORNER OF LOT 67 OF ROLLING HILLS, AS SHOWN ON MAP RECORDED IN BOOK 201, PAGE 29 ET SEQ. OF MAPS, RECORDS OF SAID COUNTY; THENCE ALONG THE SOUTHWESTERLY LINE OF SAID LOT 67, NORTH 45° 27' 10" WEST 251.44 FEET TO AN ANGLE POINT THEREIN; THENCE ALONG SAID SOUTHWESTERLY LINE, NORTH 57° 30' 10" WEST 217.89 FEET TO THE MOST NORTHERLY CORNER OF THE LAND DESCRIBED IN DEED TO JACK V. EVANS AND WIFE, RECORDED IN BOOK 16862, PAGE 119, OF OFFICIAL RECORDS OF SAID COUNTY; THENCE ALONG THE EXTERIOR BOUNDARIES OF SAID LAST MENTIONED LAND, SOUTH 2° 43' 00" EAST 115.54 FEET; SOUTH 27° 28' 50" EAST 152.98 FEET; SOUTH 38° 16' 40" WEST 97.13 FEET; NORTH 72° 33' 00" FEET WEST 237.07 FEET AND NORTH 12° 22' 30" WEST 88.12 FEET TO THE SOUTHEASTERLY BOUNDARY OF LOT 73 OF SAID ROLLING HILLS; THENCE ALONG SAID SOUTHEASTERLY BOUNDARY, SOUTH 34° 55' 30" WEST 63.99 FEET TO AN ANGEL POINT THEREIN; THENCE ALONG SAID SOUTHEASTERLY BOUNDARY SOUTH 63° 43' 20" WEST 263.33 FEET TO AN ANGLE POINT THEREIN; THENCE ALONG SAID SOUTHEASTERLY BOUNDARY 69° 03' 40" WEST 350.80 FEET TO THE EASTERLY BOUNDARY OF LOT 89 OF SAID ROLLING HILLS; THENCE ALONG THE EASTERLY BOUNDARY OF LOTS 89 AND 90 OF SAID ROLLING HILLS, SOUTH 4° 00' 00" WEST 423.68 FEET; THENCE LEAVING SAID EASTERLY BOUNDARY, SOUTH 7° 49' 55" WEST 542.28 FEET TO A 2" IRON PIPE; THENCE NORTH 41° 05' 00" EAST 650.00 FEET; THENCE NORTH 23° 35' 00" EAST 217.00 FEET; THENCE NORTH 58° 00' 00" EAST 420.00 FEET; THENCE SOUTH 76° 41' 51" EAST 387.00 FEET; THENCE NORTH 39° 33' 00" EAST, 230.09 FEET TO A POINT WHICH BEARS SOUTH 36° 32' 57" EAST 163.44 FEET; FROM THE POINT OF BEGINNING; THENCE NORTH 36° 32' 57" WEST 163.44 FEET TO THE POINT OF BEGINNING. APN: 7567-001-901 2 CLTA Preliminary Report Form - Modified (11/17/06) Title No. 10-725134625-SB Locate No. CAFNT0972-0972-0051-0725134625 AT THE DATE HEREOF, ITEMS TO BE CONSIDERED AND EXCEPTIONS TO COVERAGE IN ADDITION TO THE PRINTED EXCEPTIONS AND EXCLUSIONS IN SAID POLICY FORM WOULD BE AS FOLLOWS: 1. General and special city and/or county taxes, bonds, or assessments which may become due on said land, if and when title to said land is no longer vested in a governmental or quasigovernmental agency. Tax parcel for said land is currently shown as: 7567-001-901. 2. 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. 3. Water rights, claims or title to water, whether or not disclosed by the public records. 4. Covenants, conditions and restrictions in the declaration of restrictions but omitting any covenants or restrictions, if any, including, but not limited to those based upon race, color, religion, sex, sexual orientation, familial status, marital status, disability, handicap, national origin, ancestry, or source of income, as set forth in applicable state or federal laws, except to the extent that said covenant or restriction is permitted by applicable law. Recorded: Book 21089, Page 122, of Official Records 5. Covenants, conditions and restrictions in the declaration of restrictions but omitting any covenants or restrictions, if any, including, but not limited to those based upon race, color, religion, sex, sexual orientation, familial status, marital status, disability, handicap, national origin, ancestry, or source of income, as set forth in applicable state or federal laws, except to the extent that said covenant or restriction is permitted by applicable law. Recorded: Book 29297, Page 273, of Official Records 6. Easement(s) for the purpose(s) shown below and rights incidental thereto as reserved in a document; Reserved by: R. Paul Husted, et al Purpose: Roads, streets, poles, wires, conduits Recorded: February 29, 1956, Instrument No. 215, of Official Records Affects: As described therein Reference is made to said document for full particulars. 7. Covenants, conditions and restrictions, but omitting any covenants or restrictions, if any, including, but not limited to those based upon race, color, religion, sex, sexual orientation, familial status, marital status, disability, handicap, national origin, ancestry, or source of income, as set forth in applicable state or federal laws, except to the extent that said covenant or restriction is permitted by applicable law, as set forth in the document referred to in the numbered item last above shown. 3 CLTA Preliminary Report Form - Modified (11/17/06) ITEMS: (continued) Title No. 10-725134625-SB Locate No. CAFNT0972-0972-0051-0725134625 Said covenants, conditions and restrictions provide that a violation thereof shall not defeat the lien of any mortgage or deed of trust made in good faith and for value. 8. Easement(s) for the purpose(s) shown below and rights incidental thereto as granted in a document. Granted to: Southern California Gas Company Purpose: Pipe lines, conduits Recorded: January 18, 1957, Book 53411, Page 96, of Official Records Affects: A strip of land 10 feet in width 9. A lease with certain terms, covenants, conditions and provisions set forth therein. Lessor: City of Rolling Hills, a municipal corporation Lessee: Rolling Hills Community Association of Rancho Palos Verdes, a non-profit California corporation Recorded: March 23, 1971, Instrument No. 2724, 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. 10. This Company will require the following documents for review prior to the issuance of any title assurance predicated upon a conveyance or encumbrance by the corporation named below. Corporation: City of Rolling Hills, a municipal corporation, (a) A copy of the corporation By -Laws and Articles of Incorporation. (b) An original or certified copy of the Resolution authorizing the transaction contemplated herein. (c) If the Articles and/or By -Laws require approval by a "parent" organization, a copy of the Articles and By -Laws of the parent. The right is reserved to add requirements or additional items after completion of such review. END OF ITEMS Note 1. If a county recorder, title insurance company, escrow company, real estate broker, real estate agent or association provides a copy of a declaration, governing document or deed to any person, California law requires that the document provided shall include a statement regarding any unlawful restrictions. Said statement is to be in at least 14-point bold face type and may be stamped on the first page of any document provided or included as a cover page attached to the requested document. Should a party to this transaction request a copy of any document reported herein that fits this category, the statement is to be included in the manner described. 4 CLTA Preliminary Report Form - Modified (11/17/06) NOTES: (continued) Title No. 10-725134625-SB Locate No. CAFNT0972-0972-0051-0725134625 Note 2. Wiring instructions for Fidelity National Title Company, Riverside, CA, are as follows: Receiving Bank: ABA Routing No.: Credit Account Name: Credit Account No.: Reference No.: Union Bank of California (800) 849-6466 Irvine, CA 92614 122000496 Fidelity National Title Company - Major Accounts Payoff/Admin 11870 Pierce St. Suite 100, Riverside, CA 92505 9100586999 10-725134625 These wiring instructions are for this specific transaction involving the Title Department of the Newport Beach office of Fidelity National Title Company. These instructions therefore should not be used in other transactions without first verifying the information with our accounting department. It is imperative that the wire text be exactly as indicated. Any extraneous information may cause unnecessary delays in confirming the receipt of funds. Note 3. Any documents being executed in conjunction with this transaction must be signed in the presence of an authorized Company employee, an authorized employee of an agent, an authorized employee of the insured lender, or by using Bancsery or other approved third -party service. If the above requirements cannot be met, please call the company at the number provided in this report. 5 CLTA Preliminary Report Form - Modified (11/17/06) NOTES: (continued) Title No. 10-725134625-SB Locate No. CAFNT0972-0972-0051-0725134625 OWNER'S DECLARATION The undersigned hereby declares as follows: 1. (Fill in the applicable paragraph and strike the other) a. Declarant ("Owner") is the owner or lessee, as the case may be, of certain premises located at , further described as follows: See Preliminary Report/Commitment No. for full legal description (the "Land"). b. Declarant is the of ("Owner"), which is the owner or lessee, as the case may be, of certain premises located at , further described as follows: See Preliminary Report/Commitment No. for full legal description (the "Land"). 2. (Fill in the applicable paragraph and strike the other.) a. During the period of six months immediately preceding the date of this declaration no work has been done, no surveys or architectural or engineering plans have been prepared, and no materials have been furnished in connection with the erection, equipment, repair, protection or removal of any building or other structure on the Land or in connection with the improvement of the Land in any manner whatsoever. b. During the period of six months immediately preceding the date of this declaration certain work has been done and materials furnished in connection with upon the Land in the approximate total sum of $ , but no work whatever remains to be done and no materials remain to be furnished to complete the construction in full compliance with the plans and specifications, nor are there any unpaid bills incurred for labor and materials used in making such improvements or repairs upon the Land, or for the services of architects, surveyors or engineers, except as follows: . Owner, by the undersigned Declarant, agrees to and does hereby indemnify and hold harmless Fidelity National Title Insurance Company against any and all claims arising therefrom. 3. Owner has not previously conveyed the Land; is not a debtor in bankruptcy (and if a partnership, the general partner thereof is not a debtor in bankruptcy); and has not received notice of any pending court action affecting the title to the Land. 4. Except as shown in the above -referenced Preliminary Report/Commitment, there are no unpaid or unsatisfied mortgages, deeds of trust, Uniform Commercial Code financing statements, claims of lien, special assessments, or taxes that constitute a lien against the Land or that affect the Land but have not been recorded in the public records. 5. The Land is currently in use as ; occupy/occupies the Land; and the following are all of the leases or other occupancy rights affecting the Land: 6. There are no other persons or entities that assert an ownership interest in the Land, nor are there unrecorded easements, claims of easement, or boundary disputes that affect the Land. 7. There are no outstanding options to purchase or rights of first refusal affecting the Land. 6 CLTA Preliminary Report form - Modified (11/17/06) NOTES: (continued) Title No. 10-725134625-SB Locate No. CAFNT0972-0972-0051-0725134625 This declaration is made with the intention that Fidelity National Title Insurance Company (the "Company") and its policy issuing agents will rely upon it in issuing their title insurance policies and endorsements. Owner, by the undersigned Declarant, agrees to indemnify the Company against loss or damage (including attorneys fees, expenses, and costs) incurred by the Company as a result of any untrue statement made herein. I declare under penalty of perjury that the foregoing is true and correct and that this declaration was executed on at Signature: END OF NOTES 7 CLTA Preliminary Report Form - Modified (11/17/06) 1 7567 I I. SCALE i^ — 200' ifit1XCar te/D CODE 7084 FOR FREY. ASSM'i. SEE: • 7557-1 • • lam! 'Vi rro e• crry PIQ / `r7 -f 6 �4 �k �.....1 1.S7tSe. / This Map Is being furnished as a convenience to locate the herein described lend In relation to adjolning street" and other lends. The Company does not guarantee dimensions, distances, bearings,or acreage stated thereon, nor is It intended to illustrate legal building .Res or supersede City or County ordinances, Le. zoning and building codes, etc. Omclal Information concerning the use of any parcel should be obtained horn local government egenets*. at Ketdl!Cog le/1/ 3l 1 / O it PI /Q _ x 1.603A ' S.OStAe. "" — e�ei // ''A list tr`� '4%- LOS=vie. r69 90oNr f.57tAe. / tp1S,� s' , L.A.C.A. MAP NO. 51 A.M. I - I NW Ilea: Id /I R..x 71•/1-14 rs TRACT NO. 32071 M.B. 848 —56-57 N,,f REVISED 9-/I-SD 1 //-25 S9 //- 6- 63+ mivoa/aj Alrozro3 74/2/C50 ; ASSESSORS itAP COUNTY OF LOS ANGELES, CALIF. ATTACHMENT ONE AMERICAN LAND TITLE ASSOCIATION RESIDENTIAL TITLE INSURANCE POLICY (6-1-87) EXCLUSIONS In addition to the Exceptions in Schedule B, you are not insured against loss, costs, attorneys' fees, and expenses resulting from: 1. Governmental police power, and the existence or violation of any law or government regulation. This includes building and zoning ordinances and also laws and regulations concerning: • land use • improvements on the land • land division • environmental protection This exclusion does not apply to violations or the enforcement of these matters which appear in the public records at policy date. This exclusion does not limit the zoning coverage described in Items 12 and 13 of Covered Title Risks. 2. The right to take the land by condemning it, unless: • a notice of exercising the right appears in the public records on the Policy Date • the taking happened prior to the Policy Date and is binding on you if you bought the land without knowledge of the taking In addition to the Exclusions, you arc not insured against loss, costs, attorneys' fees, and the expenses resulting from: 1. Any rights, interests, or claims of parties in possession of the land not shown by the public records. 2. Any casements or liens not shown by the public records. This does not limit the lien coverage in Item 8 of Covered Title Risks. 3. Title Risks: • that arc created, allowed, or agreed to by you • that are known to you, but not to us, on the Policy Date - unless they appeared in the public records • that result in no loss to you • that first affect your title after the Policy Date - this does not limit the labor and material lien coverage in Item 8 of Covered Title Risks 4. Failure to pay value for your title. 5. Lack of a nght: • to any land outside the area specifically described and referred to in Item 3 of Schedule A or • in streets, alleys, or waterways that touch your land This exclusion does not limit the access coverage in Item 5 of Covered Title Risks. 3. Any facts about the land which a correct survey would disclose and which are not shown by the public records. This does not limit the forced removal coverage in Item 12 of Covered Title Risks. 4. Any water rights or claims or title to water in or under the land, whether or not shown by the public records. Attachment One (2/3/10) ATTACHMENT ONE (CONTINUED) CALIFORNIA LAND TITLE ASSOCIATION STANDARD COVERAGE POLICY -1990 EXCLUSIONS FROM COVERAGE The following matters are expressly excluded from the coverage of this policy and the Company will not pay loss or damage, costs, attorneys' fees or expenses which arise by reason of: 1. (a) Any law, ordinance or governmental regulation (including but not limited to building and 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 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 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 or interest insured by this policy or the transaction creating the interest of the insured lender, by reason of the operation of federal bankruptcy, state insolvency or similar creditors' rights laws. SCHEDULE B, PART I 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: PART I I . Taxes or assessments which are not shown as existing liens by the records of any taxing authority that levies taxes or assessments on real property or by the public records. Proceedings by a public agency which may result in taxes or assessments, or notices of such proceedings, whether or not shown by the records of such agency or by the public records. 2. Any facts, rights, interests or claims which are not shown by the public records but which 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, not shown by the public records. 4. Discrepancies, conflicts in boundary lines, shortage in area, encroachments, or any other facts which a correct survey would disclose, and which are not shown by the public records. 5. (a) Unpatented mining claims; (b) reservations or exceptions in patents or in Acts authorizing the issuance thereof; (c) water rights, claims or title to water, whether or not the matters excepted under (a), (b), or (c) are shown by the public records. 6. Any lien or right to a lien for services, labor or material not shown by the public records. Attachment One (2/3/10) ATTACHMENT ONE (CONTINUED) FORMERLY AMERICAN LAND TITLE ASSOCIATION LOAN POLICY (10-17-92) 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. 2. Rights of eminent domain unless notice of the exercise thereof has been recorded in the public records at Date of Policy, but not excluding from coverage any taking which has occurred prior to Date of Policy which would be binding on the rights of a purchaser for value without knowledge. 3. Defects, liens, encumbrances, adverse claims, or other matters: (a) created, suffered, assumed or agreed to by the insured claimant; (b) not known to the Company, not recorded in the public records at Date of Policy, but known to the insured claimant and not disclosed in writing to the Company by the insured claimant prior to the date the insured claimant became an insured under this policy; (c) resulting in no loss or damage to the insured claimant; (d) attaching or created subsequent to Date of Policy (except to the extent that this policy insures the priority of the lien of the insured mortgage over any statutory lien for services, labor or material or to the extent insurance is afforded herein as to 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 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 judgement or lien creditor. 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) which arise by reason of: 1. Taxes or assessments which are not shown as existing liens by the records of any taxing authority that levies taxes or assessments on real property or by the public records. Proceedings by a public agency which may result in taxes or assessments, or notices of such proceedings, whether or not shown by the records of such agency or by the public records. 2. Any facts, rights, interests or claims which are not shown by the public records but which could be ascertained by an inspection of the land or 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, 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. Attachment One (2/3/10) ATTACHMENT ONE (CONTINUED) 2006 AMERICAN LAND TITLE ASSOCIATION 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, 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; (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 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 11(b). 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: 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. 6. Any lien or right to a lien for services, labor or material not shown by the Public Records. Attachment One (2/3/10) ATTACHMENT ONE (CONTINUED) FORMERLY AMERICAN LAND TITLE ASSOCIATION OWNER'S POLICY (10-17-92) EXCLUSIONS FROM COVERAGE The following matters are expressly excluded from the coverage of this policy and the Company will not pay loss or damage, 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. 2. Rights of eminent domain unless notice of the exercise thereof has been recorded in the public records at Date of Policy, but not excluding from coverage any taking which has occurred prior to Date of Policy which would be binding on the rights of a purchaser for value without knowledge. 3. Defects, liens, encumbrances, adverse claims, or other matters: (a) created, suffered, assumed or agreed to by the insured claimant; (b) not known to the Company, not recorded in the public records at Date of Policy, but known to the insured claimant and not disclosed in writing to the Company by the insured claimant prior to the date the insured claimant became an insured under this policy; (c) resulting in no loss or damage to the insured claimant; (d) attaching or created subsequent to Date of Policy, or (e) resulting in loss or damage which would not have been sustained if the insured claimant had paid value for the estate or interest insured by this policy. 4. Any claim, which arises out of the transaction vesting in the insured the estate or interest insured by this policy, by reason of the operation of federal bankruptcy, state insolvency, or similar creditors' rights laws, that is based on: (i) 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 judgement or lien creditor. 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) which arise by reason of: 1. Taxes or assessments which are not shown as existing liens by the records of any taxing authority that levies taxes or assessments on real property or by the public records. Proceedings by a public agency which may result in taxes or assessments, or notices of such proceedings, whether or not shown by the records of such agency or by the public records. 2. Any facts, rights, interests or claims which are not shown by the public record§ 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 not shown by the public records. 4. Discrepancies, conflicts in boundary lines, shortage in area, encroachments, or any other facts which a correct survey would disclose, and which are not shown by the public records. 5. (a) Unpatented mining claims; (b) reservations or exceptions in patents or in Acts authorizing the issuance thereof; (c) water rights, claims or title to water, whether or not the matters excepted under (a), (b) or (c) are shown by the public records. 6. Any lien or right to a lien for services, labor or material not shown by the public records. Attachment One (2/3/10) ATTACHMENT ONE (CONTINUED) 2006 AMERICAN LAND TITLE ASSOCIATION 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: 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 ofany 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 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. 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 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 maybe asserted by persons in possession of the Land. 3. Easements, liens or encumbrances, or claims theieuf, 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. 6. Any lien or right to a lien for services, labor or material not shown by the Public Records. Attachment One (2/3/10) ATTACHMENT ONE (CONTINUED) CLTA HOMEOWNER'S POLICY OF TITLE INSURANCE (10-22-03) ALTA HOMEOWNER'S POLICY OF TITLE INSURANCE (10-22-03) EXCLUSIONS In addition to the Exceptions in Schedule B, You arc not insured against loss, costs, attorneys' fees, and expenses resulting from: 1. Governmental police power, and the existence or violation of any law or government regulation. This includes ordinances, laws and regulations concerning: a. building b. zoning c. Land use d. improvements on Land e. Land division f. environmental protection This Exclusion does not apply to violations or the enforcement of these matters if notice of the violation or enforcement appears in the Public Records at the Policy Date. This Exclusion does not limit the coverage described in Covered Risk 14, 15, 16, 17 or 24. 2. The failure of Your existing structures, or any part of them, to be constructed in accordance with applicable building codes. This Exclusion does not apply to violations of building codes if notice of the violation appears in the Public Records at the Policy Date. 3. The right to take the Land by condemning it, unless: a. notice of exercising the right appears in the 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 arc 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 11or18. LIMITATIONS ON COVERED RISKS Your insurance for the following Covered Risks is limited on the Owner's Coverage Statement as follows: • For Covered Risk 14, 15,16 and 18, Your Deductible Amount and Our Maximum Dollar Limit of Liability shown in Schedule A. The deductible amounts and maximum dollar limits shown on Schedule A are as follows: Covered Risk 14: Covered Risk 15: Covered Risk 16: Covered Risk 18: Your Deductible Amount Our Maximum Dollar Limit of Liability 1.00% of Policy Amount $ 10.000.00 or $ 2,500.00 (whichever is less) 1.00% of Policy Amount $ 25,000.00 or $ 5,000.00 (whichever is less) 1.00% of Policy Amount $ 25,000.00 or $ 5,000.00 (whichever is less) 1.00% of Policy Amount $ 5,000.00 or $ 2.500.00 (whichever is less) Attachment One (2/3/10) ATTACHMENT ONE (CONTINUED) CLTA HOMEOWNER'S POLICY OF TITLE INSURANCE (02-03-10) ALTA HOMEOWNER'S POLICY OF TITLE INSURANCE (02-03-10) EXCLUSIONS In addition to the Exceptions in Schedule B, You arc not insured against loss, costs, attorneys' fees, and expenses resulting from: 1. Governmental police power, and the existence or violation of those portions of any law or government regulation concerning: a. building; b. zoning; c. land use; d. improvements on the Land; e. land division; and f. environmental protection. This Exclusion does not limit the coverage described in Covered Risk 8.a., 14, 15, 16, 18, 19, 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. 4. Risks: a. that arc created, allowed, or agreed to by You, whether or not they arc recorded in the Public Records; b. that arc 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.c., 25, 26, 27 or 28. 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 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 Maximum Dollar Limit of Liability shown in Schedule A. The deductible amounts and maximum dollar limits shown on Schedule A are as follows: Covered Risk 16: Covered Risk 18: Covered Risk 19: Covered Risk 21: Your Deductible Amount 1.00% of Policy Amount Shown in Schedule A or $ 2,500.00 (whichever is less) 1:00% of Policy Amount Shown in Schedule A or $ 5.000.00 (whichever is less) Our Maximum Dollar Limit of Liability $ 10.000.00 $ 25.000.00 1.00% of Policy Amount $ 25.000.00 Shown in Schedule A or $ 5,000.00 (whichever is less) 1.00% of Policy Amount Shown in Schedule A or $ 2,500.00 (whichever is less) $ 5,000.00 Attachment One (2/3/10) ATTACHMENT ONE (CONTINUED) ALTA EXPANDED COVERAGE RESIDENTIAL LOAN POLICY (10/13/01) 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 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 improvements now or hereafter erected on the Land; (iii) a separation in ownership or a change in the dimensions or areas of the Land or any parcel of which the Land is or was a part; or (iv) environmental protection, or the effect of any violation of these laws, ordinances or governmental regulations, except to the extent that a notice of the enforcement thereof or a notice of a defect, lien or encumbrance resulting from a violation or alleged violation affecting the Land has been recorded in the Public Records at Date of Policy. This exclusion does not limit the coverage provided under Covered Risks 12,13,14, and 16 of this 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. This exclusion does not limit the coverage provided under Covered Risks 12, 13, 14„and 16 of this policy. 2. Rights of eminent domain unless notice of the exercise thereof has been recorded in the Public Records at Date of Policy, but not excluding from coverage any taking which has occurred prior to Date of Policy which would be binding on the rights of a purchaser for value without Knowledge. 3. Defects, liens, encumbrances, adverse claims or other matters: (a) created, suffered, assumed or agreed to by the Insured Claimant; (b) not Known to the Company, not recorded in the Public Records at Date of Policy, but Known to the Insured Claimant and not disclosed in writing to the Company by the Insured Claimant prior to the date the Insured Claimant became an Insured under this policy; (c) resulting in no loss damage to the Insured Claimant; (d) attaching or created subsequent to Date of Policy (this paragraph does not limit the coverage provided under Covered Risks 8, 16, 18, 19, 20, 21, 22, 23, 24, 25 and 26); 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 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, except as provided in Covered Risk 27, or any consumer credit protection or truth in lending law. 6. Real property taxes or assessments of any governmental authority which become a lien on the Land subsequent to Date of Policy. This exclusion does not limit the coverage provided under Covered Risks 7, 8(e) and 26. 7. 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 limit the coverage provided in Covered Risk 8. 8. Lack of priority of the lien of the Insured Mortgage as to each and every advance made after Date of Policy, and all interest charged thereon, over liens, encumbrances and other matters affecting the title, the existence of which are Known to the Insured at: (a) The time of the advance; or (b) The time a modification is made to the terms of the Insured Mortgage which changes the rate of interest charged, if the rate of interest is greater as a result of the modification than it would have been before the modification. This exclusion does not limit the coverage provided in Covered Risk 8. 9. The failure of the residential structure, or any portion thereof to have been constructed before, on or after Date of Policy 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 Date of Policy. Attachment One (2/3/10) ATTACHMENT ONE (CONTINUED) ALTA EXPANDED COVERAGE RESIDENTIAL LOAN POLICY (02/03/10) 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 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. 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 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 (2/3/10) Notice You may be entitled to receive a $20.00 discount on escrow services if you purchased, sold or refinanced residential property in California between May 19, 1995 and November 1, 2002. If you had more than one qualifying transaction, you may be entitled to multiple discounts. If your previous transaction involved the same property that is the subject of your current transaction, you do not have to do anything; the Company will provide the discount, provided you are paying for escrow or title services in this transaction. If your previous transaction involved property different from the property that is subject of your current transaction, you must - prior to the close of the current transaction - inform the Company of the earlier transaction, provide the address of the property involved in the previous transaction, and the date or approximate date that the escrow closed to be eligible for the discount. Unless you inform the Company of the prior transaction on property that is not the subject of this transaction, the Company has no obligation to conduct an investigation to determine if you qualify for a discount. If you provide the Company information concerning a prior transaction, the Company is required to determine if you qualify for a discount which is subject to other terms and conditions. Effective through November 1, 2014 (privacy)(05-08) Page 1 of 2 Fidelity National Financial, Inc. Privacy Statement Effective Date: 5/1/2008 Fidelity National Financial, Inc. and its subsidiaries ("FNF") respect the privacy and security of your non-public personal information ("Personal Information") and protecting your Personal Information is one of our top priorities. This Privacy Statement explains FNF's privacy practices, including how we use the Personal Information we receive from you and from other specified sources, and to whom it may be disclosed. FNF follows the privacy practices described in this Privacy Statement and, depending on the business performed, FNF companies may share information as described herein. Personal Information Collected We may collect Personal Information about you from the following sources: • Information we receive from you on applications or other forms, such as your name, address, social security number, tax identification number, asset information, and income information; • Information we receive from you through our Internet websites, such as your name, address, email address, Internet Protocol address, the website links you used to get to our websites, and your activity while using or reviewing our websites; • Information about your transactions with or services performed by us, our affiliates, or others, such as information concerning your policy, premiums, payment history, information about your home or other real property, information from lenders and other third parties involved in such transaction, account balances, and credit card information; and • Information we receive from consumer or other reporting agencies and publicly recorded documents. Disclosure of Personal Information We may provide your Personal Information (excluding information we receive from consumer or other credit reporting agencies) to various individuals and companies, as permitted by law, without obtaining your prior authorization. Such laws do not allow consumers to restrict these disclosures. Disclosures may include, without limitation, the following: • To insurance agents, brokers, representatives, support organizations, or others to provide you with services you have requested, and to enable us to detect or prevent criminal activity, fraud, material misrepresentation, or nondisclosure in connection with an insurance transaction; • To third -party contractors or service providers for the purpose of determining your eligibility for an insurance benefit or payment and/or providing you with services you have requested; • To an insurance regulatory authority, or a law enforcement or other governmental authority, in a civil action, in connection with a subpoena or_ a governmental investigation; • To companies that perform marketing services on our behalf or to other financial institutions with which we have joint marketing agreements and/or • To lenders, lien holders, judgment creditors, or other parties claiming an encumbrance or an interest in title whose claim or interest must be determined, settled, paid or released prior to a title or escrow closing. We may also disclose your Personal Information to others when we believe, in good faith, that such disclosure is reasonably necessary to comply with the law or to protect the safety of our customers, employees, or property and/or to comply with a judicial proceeding, court order or legal process. (privacy) Page 2 of 2 Effective Date: 5/1/2008 Disclosure to Affiliated Companies - We are permitted by law to share your name, address and facts about your transaction with other FNF companies, such as insurance companies, agents, and other real estate service providers to provide you with services you have requested, for marketing or product development research, or to market products or services to you. We do not, however, disclose information we collect from consumer or credit reporting agencies with our affiliates or others without your consent, in conformity with applicable law, unless such disclosure is otherwise permitted by law. Disclosure to Nonaffiliated Third Parties - We do not disclose Personal Information about our customers or former customers to nonaffiliated third parties, except as outlined herein or as otherwise permitted by law. Confidentiality and Security of Personal Information We restrict access to Personal Information about you to those employees who need to know that information to provide products or services to you. We maintain physical, electronic, and procedural safeguards that comply with federal regulations to guard Personal Information. Access To Personal Information/ Requests for Correction, Amendment, or Deletion of Personal Information As required by applicable law, we will afford you the right to access your Personal Information, under certain circumstances to find out to whom your Personal Information has been disclosed, and request correction or deletion of your Personal Information. However, FNF's current policy is to maintain customers' Personal Information for no less than your state's reauired record retention reauirements for the purpose of handlina future coveraae claims. For your protection, all reauests made under this section must be in writina and must include your notarized sianature to establish your identity. Where permitted by law, we may charge a reasonable fee to cover the costs incurred in responding to such requests. Please send requests to: Chief Privacy Officer Fidelity National Financial, Inc. 601 Riverside Avenue Jacksonville, FL 32204 Changes to this Privacy Statement This Privacy Statement may be amended from time to time consistent with applicable privacy laws. When we amend this Privacy Statement, we will post a notice of such changes on our website. The effective date of this Privacy Statement, as stated above, indicates the last time this Privacy Statement was revised or materially changed. Notice of Available Discounts Pursuant to Section 2355.3 in Title 10 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 rate. 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 to transactions involving property improved with a one -to -four family residential dwelling. FNF Underwritten Title Companies FNF Underwriter FNTC — Fidelity National Title Company FNTIC — Fidelity National Title Insurance Company FNTCCA — Fidelity National Title Company of California Available Discounts CREDIT FOR PRELIMINARY REPORTS AND/OR COMMITMENTS ON SUBSEQUENT POLICIES (FNTIC) Where no major change in the title has occurred since the issuance of the original report or commitment, the order may be reopened within 12 or 36 months and all or a portion of the charge previously paid for the report or commitment may be credited on a subsequent policy charge. FEE REDUCTION SETTLEMENT PROGRAM (FNTC, FNTCCA and FNTIC) Eligible customers shall receive a $20.00 reduction in their title and/or escrow fees charged by the Company for each eligible transaction in accordance with the terms of the Final Judgments entered in The People of the State of California etal. v. fidelity National Title Insurance Company etal., Sacramento Superior Court Case No. 99AS02793, and related cases. DISASTER LOANS (FNTIC) The charge for a 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 50% of the appropriate title insurance rate. CHURCHES OR CHARITABLE NON-PROFIT ORGANIZATIONS (FNTIC) On properties used as a church or for charitable purposes within the scope of the normal activities of such entities, provided said charge is normally the church's obligation the charge for an owner's policy shall be 50% or 70% of the appropriate title insurance rate, depending on the type of coverage selected. The charge for a lender's policy shall be 32% or 50% of the appropriate title insurance rate, depending on the type of coverage selected. CA Discount Notice (notdisc-fnt) Effective Date: 7/1/2010 e Ir, Ewa Nikodem Wednesday, January 19, 2011 8:01 AM Subject: FW: Document Delivery Notice - Order #725134625 Ref 1: Parcel C/ Palos Verdes Peninsula, Rolling Hills, Ca Date: Tuesday, January 18, 2011 5:45 PM From: Heidi Luce <hluce@cityofrh.net> To: Ewa Nikodem <enikodem@cityofrh.net> I have been holding on to this, not sure why. Can you please be sure that Yolanta has a copy in her Poppy Trail file. Thank you! Heidi Heidi Luce Deputy City Clerk City of Rolling Hills 2 Portuguese Bend Road, Rolling Hills, CA 90274 310.377.1521 www.rolling-hills.org This is a transmission from the Ciry of Rolling Hills. The information contained in this email pertains to City business and is intended solely for the use of the individual or entity to whom it is addressed. If the reader of this message is not an intended recipient, or the employee or agent responsible for delivering the message to the intended recipient and you have received this message in error, please advise the sender by reply email and delete the message. WARNING: Computer viruses can be transmitted by e-mail. The recipient should check this e-mail and any attachments for the presence of viruses. The CITY OF ROLLING HILLS accepts no liability for any damage caused by any virus transmitted by this e- mail. Forwarded Message From: Tony Dahlerbruch <adahlerbruch@cityofrh.net> Date: Thu, 16 Dec 2010 10:23:56 -0800 To: Yolanta Schwartz <ys@cityofrh.net>, Jim Walker <jwalker@cityofrh.net> Cc: Heidi Luce <hluce@cityofrh.net> Subject: FW: Document Delivery Notice - Order #725134625 Ref 1: Parcel C / Palos Verdes Peninsula, Rolling Hills, Ca For our files Page 1 of 5 Oft .14 Anton Dahlerbruch City Manager City of Rolling Hills 2 Portuguese Bend Road Rolling Hills, CA 90274 310.377.1521 www.rolling-hills.org This is a transmission from the City of Rolling Hills. The information contained in this email pertains to City business and is intended solely for the use of the individual or entity to whom it is addressed. If the reader of this message is not an intended recipient, or the employee or agent responsible for delivering the message to the intended recipient and you have received this message in error, please advise the sender by reply email and delete the message. Forwarded Message From: Andy Lazzaretto <andylazz@earthlink.net> Reply -To: Andy Lazaretto <Andy@aclazz.com> Date: Thu, 16 Dec 2010 09:58:44 -0800 To: "'Richards, Edwin J."' <Ed.Richards@kutakrock.com>, Anton Dahlerbruch <adahlerbruch@cityofrh.net>, Michael Jenkins <mjenkins@localgovlaw.com> Cc: Ross Bolton <rbolton@boltonengineering.com> Subject: FW: Document Delivery Notice - Order #725134625 Ref 1: Parcel C / Palos Verdes Peninsula, Rolling Hills, Ca Gentlemen, Attached is the most recent Preliminary Title report from Fidelity National Title for the city owned property. The underlying documents have been ordered and when they are received I will forward them to you. Andy From: Crosby, Farrah [mailto:farrah.crosby@fnf.com] Sent: Wednesday, December 15, 2010 7:28 AM To: Lazzaretto, Andrew (Customer) Subject: Document Delivery Notice - Order #725134625 Ref 1: Parcel C / Palos Verdes Peninsula, Rolling Hills, Ca Page 2 of 5 DOCU'MEHT E- Lf TERY E C. T [CE Please click on the attachment(s) above to access your documents. Hello, Attached is a copy of the Preliminary Report for the above referenced order number. Please be advised that underlying documents are to follow as they are being ordered. Thank You, Farrah Crosby This transaction involves: Opened Date: Tuesday, December 7 2010 4:48 PM PT Project Name: Customer Ref: 725134625 Property: CA Buyer: Seller: Page 3 of 5 External Order Number: Internal Order Number: 12 380 554 Problems? Call customer service, (8AM to 8PM ET) at 1-866-401-5218 option 3 or email smartsuitesupport@cltlt.com End of Forwarded Message End of Forwarded Message Page 4 of 5 RE. SHEEN, HUI-TSE Issued For: ATTN: CALIFORNIA TITLE ASSOCIATION "A Professional Title and Guaranty Company" 1441 Huntington Drive, Suite 261 South Pasadena, CA 91030 (323) 254-7301 (800) 700-0282 FAX (323) 254-7542 1 POPPY TRAIL, ROLLING HILLS, CA 90274 APR 7 569-007-001 TITLE REPORT THE LAW OFFICES OF JENKINS & HOGIN, LLP 1230 ROSECRANS AVE., STE 11C MANHATTAN BEACH, CA 90266 ELIZABETII M. CALCIANO FAX (310) 643-8441 Subject to general and special city and county taxes, and conditions, convenants, restrictions, reservations, easements, and assessments of record unexamined, title report based on county recorder office of said county. OWNERS "REVISED & Invoice/Report No. UPDATED" Report Date: LA 19814 12-11-2008 HUI-TSE SHEEN, A SINGLE MAN AS HIS SOLE AND SEPARATE PROPERTY LEGAL DESCRIPTION PARCEL 1, IN THE CITY OF ROLLING HILLS, **USE COMPLETE LEGAL ATTACHED** in the county of State of California, as per map recorded in Book ot Pages LOSai,NGELES in the office of the county records of said cunty. 70 REC SURVEYS TAX PARCEL NO. 7569-007-001 **A/K/A LOT 90 OF ROL 1. TRUST DEED: Trustor: Trustee: Beneficiary: Recorded: $ 1,700,000.00 AND ANY OTHER AMOUNTS DUE THEREUNDER HUIS-TSE SHEEN & CHANG YING-CHING SHEEN SERRANO RECONVEYANCE COMPANY HOME SAVINGS OF AMERICA 07-29-94 Dec. 1417312 2. TRUST DEED: 1,497,000.00 AND ANY OTHER AMOUNTS DUE THEREUNDER Trustor: HUI-TSE SHEEN, A SINGLE MAN SOLE & SEPARATE PROPERTY Trustee: STEWART TITLE OF CALIFORNIA, INC. Beneficiary: FAR EAST NATIONAL BANK Recorded: 01-05-04 Doc. 16595 NOTICE OF DEFAULT: REC: 05-11-06 DOC: 1042015 NOTICE OF TRUSTEE SALE REC: 11-21-07 DOC: 2587086 ASSIGNMENT OF RENTS REC: 01-05-04 DOC: 16596 **CONTINUED ON PAGE NO. 2** California Title Association * * CONTINUATION SHEET* * Page 2 LA 19814 12-11-2008 SHEEN, HUI-TSE 1 POPPY TRAIL, ROLLING HILLS, CA 90274 APN: 7569-007-001 3, Trust Deed ALAN HUU-TSE SHEEN Trustor CHICAGO TITLE COMPANY Beneficiary DOERKEN REAL ESTATE SERVICES, INC RECORDED 06-15-04 DOC 1519239 ASSIGNED TO: CHING CHUAN CHEN 2/12THS INTEREST, ET ALL SEE DOCUMENT REC: 04-05-05 DOC: 791208 A) NOTICE OF ATTACHMENT REC: 07-16-04 DOC: 1827541 $2,500,000.00 B) TAX LIEN REC: 03-23-06 DOC: 628543 $609.30 C) TAX LIEN REC: 03-23-06 DOC: 628544 $1,746.09 D) NUISANCE ABATEMENT LIEN REC: 05-16-06 DOC: 1080935 $147,928.77 E) NUISANCE ABATEMENT LIEN REC: 06-25-07 DOC: 1519597 $74,403.70 JUDGMENT/LIEN REPORT RECORDED I JUDGMENT 06-18-04 II JUDGMENT 07-02-04 III JUDGMENT 11-08-04 IV RELEASE 12-05-05 OF LIABILITY LICENSE & AGREEMENT V JUDGMENT VI JUDGMENT VII JUDGMENT VIII JUDGMENT IX JUDGMENT 07-25-05 12-23-05 04-21-06 06-05-06 08-14-06 DOCUMENT AMOUNT 1568818 $579,038.70 1702630 $594,371.46 2895904 $2,501,099.36 2967193 1751880 3174774 879789 12260037 18022117 **REVISED" TO SHOW SUB AGREEMENT AS THIRD TRUST AND ADD JUDGMENTS/LIENS OF A/KA ALAN SHEEN '**END OF DATA** $20,295,111.00 $20,295,111.00 $171,031.85 $171,031.85 $20,295,111.00