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Home My WebLink About8.1 ROW Purch GhyselsProp CI'TY CLERK AG E N DA STATE M E NT CTTY COUNCTL MEETI'NG DATE: April 1.5~ 2003 SUBJECT: Approval of Contract to Purchase Right-of-Way for the Village Parkway Improvements-Amador Valley Boulevard to Dublin Boulevard Project Report Prepared by: Lee S. Thompson, Public Works Director ATTACHMENTS: Right-of-Way Contract for the Ghysels Property RECOMMENDATION:I) 1) Approve the purchase of real property located at 7033 ......... .5~ Village Parkway / ~i;.~.~' 2) Authorize the City Manager to sign the Right-of-Way ii' Contract and issue check in the amount of $21,360 payable to North American Title Company for deposit into escrow. FINANCIAL STATEMENT: The right-of-way contract, if approved, would authorize the payment of $21,360 to purchase a portion of the Ghysels property needed for the Village Parkway Improvements project. Escrow closing costs for the right-of-way acquisition are estimated at $1,200; hence, the total amount needed for the purchase is $22,560. Sufficient funds have been budgeted to acquire the right-of-way. DESCRIPTION: As part of the project entitled Village Parkway Improvements - Amador Valley Boulevard to Dublin Boulevard, a plaza is to be construction at the intersection of Village Parkway and Lewis Avenue. In order to construct the plaza, the City must acquire a portion of the property located at 7033 Village Parkway, which is approximately 534 square feet in area. The City's consultant, Associated Right-of-Way Services, had appraised said parcel and has been negotiating with the property owner (Ghysels) to acquire this right-of-way. The $18,900 market value of the property was based on an appraisal prepared by the consultant and approved by the City. This amount was offered to the property owner who subsequently agreed on a proposed settlement amount of $21,360. It is recommended that the Council approve the purchase of real property located at 7033 Village Parkway, and authorize the City Manager to sign the right-of-way contract and issue a check in the amount of $21,360 payable to North American Title Company for deposit into escrow. COPIES TO: Art Roberts, ARWS g:\miscprojWP-Lewis Imp\Agst Purchase Agmt Approval Ghysels.doc GRANTOR: GHYSELS, ALBERT& MAUmCE APN: 941-0210-016 PROJECT: CITY OF DUBLIN -- DOWNTOWN STREETSCAPE IMPROVEMENTS -- LEWIS ~: VILLAGE PARKWAY PLAZA CITY OF DUBLIN RIGHT OF WAY CONTRACT In consideration of the terms and conditions set forth in this Right of Way Contract (the "Contract") ALBERT AUGUST GHYSELS, Trustee of the Albert August Ghysels 1997 Trust, as to an undivided one-half interest, and MAURICE A. GHYSELS, as to an undivided one-half interest ("GRANTOR") shall deposit in an escr0~v designated by City of Dublin ("CITY"), a Grant Deed suitable for recordation and conveying ,,fr,?,,m GRANTOR to CITy fee simple ownership to the area and real property improvements indicated in Exhibit A , incorporated herein by this reference. 1. Entire Agreement The parties have herein set forth the whole of their Agreement. The performance of this Contract constitutes the entire consideration payable by CITY to GRANTOR and shall relieve CITY of all further obligations or claims on this account or on account of the location, grade, construction or operation of the proposed public improvement also known as the Downtown Streetscape Improvements - Lewis &ViIlage Parkway Plaza. (As used above, the term, "GRANTOR" shall inchMe the plural as well as the singular number.) In consideration of which, and the other considerations hereinafter set forth, it is mutually agreed as of the date first written herein below as follows: 2. CITY shall A. Pay the sum of Twenty One Thousand Three Hundred Sixty and No/100 Dollars ($21,360.00) for the property and improvements and any other consideration, identified in the Appraisal Summary Statement and Statement of the Basis for Determination of Just Compensation, delivered separately and by reference made a part of this Contract, to the following title company: North American Title Company (or any other title company selected by CITY) for the account of the GRANTOR, Escrow No. 56901-52990469-PRT conditioned upon the property vesting in' CITY free and clear of all liens, leases, encumbrances, (recorded or unrecorded), assessments and taxes except any exceptions to title which are acceptable to CITY as said exceptions are identified in the title report relating to the subject property issued by the above Title Company bearing the escrow number shown in Paragraph 2A and dated September 5, 2002, and updates thereof. Clearing of any title exceptions not acceptable to CITY is the responsibility of GRANTOR. (A copy of the applicable prelim/nary title report is attached hereto as Exhibit "B" and made a part hereof. B. Pay all escrow, recording and title insurance charges, if any, incurred in this transaction. C. Have the authority to deduct and pay from the amount shown in Paragraph 2A above any amount necessary to satisfy any liens, bond demands and delinquent taxes due in any year except the year in which this escrow closes, together with penalties and interest thereon, and/or delinquent and unpaid non delinquent assessments, which may have become a lien at the close of escrow. Taxes for the tax year in which this escrow doses shatl be cleared and paid in the manner required by Section 5086 of the Revenue and Taxation Code, if unpaid at the dose of escrow. Close of escrow for this transaction shaI1 be contingent upon the title company receiving partial reconveyances from any deed of trust or' mortgage holder trustees and beneficiaries. The consideration set forth in Paragraph 2A herein shall include payment in full for the following improvements: 534 Square Feet, landscaping. The real property interest(s) proposed to be acquired is Fee Simple, as described in Exhibit "A". GRANTOR: GHYSELS, ALBERT & MAUR1CE APN: 941-0210-016 PROJECT: CITY OF DUBLIN -- DOWNTOWN STKEETSCAPE IMPROVEMENTS -- LEWIS & VILLAGE PARKWAY PLAZA 3. ?avment of Deed of Trust If this property is secured by a mortgage(s) or deed(s) of tr~st, GRANTOR is responsible for payment of any demand under authority of said mortgage or deed of trust out of GRANTOR's proceeds. Such amounts may include, but not be limited to, payments of unpaid principal and interest. 4. Escrow Instructions GRANTOR hereby authorizes CITY to prepare and file escrow instructions in accordance with this Contract on behalf of both parties. 5. Hazardous Wastes GRANTOR hereby represents and warrants that during the period of GRANTOR~s ownership of the property, there have been no disposals, releases or threatened releases of hazardous substances or hazardous waste on, frora, or under the property. GRANTOR further represents and warrants that GRANTOR has no knowledge of any disposal, release, or threatened release of hazardous substances or hazardous waste, on, from, or under the property which may have occurred prior to GRANTOR talcing title to the proper~y. The acquisition price of the property being acquired in this transaction reflects the fair market value of the property without the presence of contamination. If the property being acquired is found to be contaminated by the presence of hazardous waste which requires mitigation under Federal or State Iaw, the CITY may elect to recover its dean-up costs from those ~vho caused or contributed to the contamination. 6..Right of Possession and Use It is agreed and confirmed by the parties hereto that, notwithstanding the other provisions in this Contract, the right of possession and use of the subject property by CITY, and/or its designees or assignees including the right to remove and dispose of improvements, and relocate, install and connect utilities shall commence on April 1, 2003, or close of escrow, whichever occurs first, and that the amount shown in Paragraph 2A herein includes, but is not Iimited to, full payment for such possession and use, including interest and damages if any, from said date. 7. Bindin~ on Successors and Assigns This Contract shall be binding on and inure to the benefit of the respective heirs, successors and assigns of the parties to this Contract. 8. No Leases GRANTOR warrants that there are no oral or written leases on all or any portion of the property proposed to be acquired exceeding a period of one month, and GRANTOR further agrees to hold CITY harmless and reimburse CITY for any and all of its losses and expenses occasioned by reason of any lease of said property held by any tenant of GRANTOR for a period exceeding one month. 9. Quitclaim Deeds If any lessee interests are identified in Paragraph 8 herein, as a condition precedent to close of escrow, Quitclaim Deeds or similar releases sufficient to clear any possessory rights from the subject property will be required. It is the GRANTOR's primary responsibility to secure any Quitclaim Deeds or releases; however, CITY agrees to reasonably assist GRANTOR in securing said Quitclaim Deeds or releases. Page 2 of 3 S.'lDublin -Downtown Streetscape[GhyselslRight of?/ay Contract-O31803.doc /ko GRANTOR: GHYSELS, ALBERT& MAURICE APN: 941-02 i~0-016 PROJECT: CITY OF DUBLIN -- DOWNTOWN STREETSCAPE IMPROVEMENTS -- LEWIS & VILLAGE PARKWAY PLAZA 10. Approval of CITY GRANTOR understands that this Contract is subject to the approval of CITY and availability of funding. Further, that this Contract shall have no force or effect unless and until said CITY approval has been obtained and funding secured. 11. Authority to Siqn GRANTOR and the signatories represent and warrant that the signatories to this Contract are authorized to enter into this Contract to convey real property and that no other authorizations are required to implement this Contract on behalf of GRANTOR. 12. Counterparts Signature This Contract may be executed in counterparts, each of which shall be an original, but ail counterparts shall constitute one. Contract. 13. Business Sign CITY shall relocate the existing business sign at its 'expense to the location as indicated on the attached Exhibit "C" and construct a new foundation similar to the foundation that supported the sign at its original location. CITY shall remove the olive tree and return the surface to grade and install shrubs or decorative bark to the area disturbed by the tree removal. IN WITNESS WHEREOF, the parties have executed this Contract the day and year first written herein below. City of Dublin: Grantor: ~ ~ c..-O.-r - Albert Au~u~fGhyse/~mstee Date: Taxpayer I.D. # Maurice A. Ghysels Taxpayer I.D. # NO OBLIGATION OTHER THAN SET FORTH HEREIN WILL BE RECOGNIZED Page 3 of 3 SADublin - Downtown StreetscapelGhyselslRight of/q/ay Contract-O31803.doc /ko EXHIBIT "A" VILLAGE PARKWAY/LEWIS AVENUE RIGHT-OF-WAY ACQUISITION PORTION OF LOT 4, BLOCK 1, TRACT NO. 2662 IN THE CITY OF DUBLIN, COUNTY OF ALAMEDA STATE OF CALIFORNIA LYING OVER, UNDER, ACROSS, AND THROUGH, THAT CERTAIN PORTION OF LOT 4 OF TRACT NO: 2662, AS SHOWN BY MAP FILED JUNE 4, 1965 IN BOOK 50, PAGES 36, RECORDS OF ALAMEDA COUNTY, IN THE CITY OF DUBLIN, STATE OF CALIFORNIA, AND BEING MORE PARTICULARLY DESCRIBED AS FOLLOWS: COMMENCING AT A POINT AT THE MOST WESTERLY CORNER OF SAID LOT 4, SAID POINT ALSO LYING ON THE NORTHEASTERLY RIGHT-OF-WAY LINE OF VILLAGE PARKWAY, BEING 100.00 FEET IN WIDTH MEASURED AT RIGHT ANGLES AS SHOWN ON SAID TRACT NO 2662; THENCE SOUTH 32052'30'' EAST, A DISTANCE OF 156.00 FEET, ALONG SAID SOUTHWESTERLY LINE OF SAID LOT 4 AND NORTHEASTERLY RIGHT-OF- WAY LINE OF VILLAGE PA~kK~VAY TO THE TRUE POINT OF BEGINNING; THENCE NORTH 57007'30'' EAST, A DISTANCE OF 20.00 FEET, LEAVING SAID SOUTHWESTERLY LINE OF LOT 4 TO THE BEGINNING OF A TANGENT CURVE, CONCAVE SOUTHERLY AND HAVING A RADIUS OF 5.00 FEET; THENCE NORTHEASTERLY, EASTERLY AND SOUTHEASTERLY, ALONG SAID CURVE THROUGH A CENTRAL ANGLE OF 90000'00'', AN ARC DISTANCE OF 7.86 FEET, TO THE BEGINNING OF A TANGENT LINE; THENCE SOUTH 32052'30'' EAST, A DISTANCE OF 20.00 FEET, ALONG SAID TANGENT LINE TO A POINT ON THE NORTHWESTERLY RIGHT-OF-WAY LINE OF LEWIS AVENUE, BEING 56.00 FEET IN WIDTH MEASURED AT RIGHT ANGLES AS SHOWN ON SAID TRACT NO. 2662; THENCE SOUTH 57007'30'' WEST, A DISTANCE OF 5.00 FEET, ALONG SAID NORTHWESTERLY RIGHT-OF-WAY LINE OF LEWIS AVENUE TO THE BEGINNING OF A TANGENT CURVE, CONCAVE NORTHERLY AND HAVING A RADIUS OF 20.00 FEET; PAGE 1 OF 2 PAGES THENCE SOUTHWESTERLY, WESTERLY AND NORTHWESTERLY ALONG SAID CURVE THROUGH A CENTRAL ANGLE OF 90°00'00'', AN ARC DISTANCE OF 31.42 FEET, TO THE BEGINNING OF A TANGENT LINE, SAID TANGENT LINE BEING SAID SOUTHWESTERLY LINE OF LOT 4 AND NORTI-{EASTERLY RIGHT-OF-WAY LINE OF VILLAGE PARKWAY; THENCE NOKTH 32052'30'' WEST, A DISTANCE 5.00 FEET, ALONG SAID TANGENT LINE TO THE TKUE POINT OF BEGINNING. CONTAINING: 533.79 SQUARE FEET, MORE OKLESS SUBJECT TO: COVENANTS, CONDITIONS, RESTRICTIONS,'"RESEKVATIONS, EASEMENTS, AND RIGHTS-OF-WAY OF RECORD, IF ANY. D UNI~7THE SUPEKVISION: /I ~APEK It*' L.S. 4933 I~AT~ 12/30/04 PAGE 2 OF 2 PAGES N32*5230 ~Y 15~ ~' ...... VIgZA~ PARKWAY L =~86' ' T=~ ~' ~,~ '-'--'-' ].il PREPPED UNDE~E SUP~SION H~Y ~ S~P~ 0 30 60 12-50-04 S~ IN ~ 18195 M~ DURMO~ ~T - SUI~ ~' F~' ('949) 660-0920 P~~AN ~~ EXHIBIT B IAMERICAN · ' Our No.: 56901-52990469-PRT COMPLY .Customer No.: ClP 94060, Downtown Streets~pe Implementation Plan City of Dublin Attn: Janet Harbin 100 Civic Plaza Dublin CA 94568 Property Address: 7033 Village Parkway Dublin, California Preliminary Report IN RESPONSE TO THE ABOVE REFERENCED APPLICATION FOR A POLICY OF TITLE INSURANCE, N~rth American Title Company, Inc. HEREBY REPORTS THAT 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 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 BELOW OR NOT EXCLUDED FROM COVERAGE PURSUANT TO THE PRINTED SCHEDULES, CONDITIONS AND STIPULATIONS OF SAID POLICY FORMS. THE PRINTED EXCEPTIONS AND EXCLUSION FROM THE COVERAGE OF SAID POLICY OR POLICIES ARE SET FORTH ON THE ATTACHED COVER, COPIES OF THE POLICY FORMS SHOULD BE READ, THEY ARE AVAILABLE FROM THE OFFICE WHICH ISSUED THIS REPORT.. PLEASE READ THE EXCEPTIONS SHOWN OR REFERRED TO BELOW AND THE EXCEPTIONS AND EXCLUSIONS SET FORTH IN EXHIBIT A OF THIs REPORT CAREFULLY. THE EXCEPTIONS ARE MEANT TO PROVIDE YOU WITH NOTICE OF MATTERS WHICH ARE NOT COVERED UNDER THE TERMS OF THE TITLE INSURANCE POLICY AND SHOULD BE CAREFULLY CONSIDERED.' IT iS IMPORTANT TO NOTE THAT THIS PRELIMINARY REPORT IS NOT A WRITTEN REPRESENTATION AS TO THE CONDITION OF TITLE AND MAY NOT LIST ALL LIENS, DEFECTS, AND ENCUMBRANCES AFFECTING TITLE TO THE LAND. THIS REPORT (AND ANY SUPPLEMENTS OR AMENDMENTS THERETO) IS ISSUED SOLELY FOR THE PURPOSE OF FACILITATING THE ISSUANCE OF A POLICY OF TITLE INSURANCE AND NO LIABILITY IS ASSUMED HEREBY. IF IT IS DESIRED THAT LIABILITY BE ASSUMED PRIOR TO THE ISSUANCE OF A POLICY OF TITLE INSURANCE, A BINDER OR COMMITMENT SHOULD BE REQUESTED. Dated as of September 5, 2002 Pam Thompson/prt- at 07:30 am Title OfficeflExaminer 4255' Hopyard Road, Suite 1, Pleasanton, CA 94588 Phone No.: (925) 399-3000 Fax No.: (925) 399-3032 · Th.e form of policy of title insurance contemplated by this report is: Preliminary Report Only ' The estate or interest in the land hereinafter described or referred to covered by this report is: Alee Title to said estate or interest at the date hereof is vested in: Albert August Ghysels, Trustee of the Albert August Ghysels 1997 Trust, as to an undivided one-half interest, and Maurice A. Ghysels, as to an undivided one-half interest Page 2 Order No.: 56901-52990469-PRT Description: The land referred to herein is situated in the State of California, County of Alameda, City of Dublin, and is described as follows: LOT 4, BLOCK 1, TRACT 2662, FILED JUNE 4, 1965, MAP BOOK 50, PAGE 36, ALAMEDA COUNTY RECORDS. EXCEPTING THEREFROM ALL OIL, GAS, MINERALS AND OTHER HYDROCARBON SUBSTANCES IN AND, UNDER OR THAT MAY BE PRODUCED FROM A DEPTH BELOW 500 FEET FROM THE SURFACE OF SAID LAND WITHOUT RIGHT OF ENTRY UPON THE SURFACE OF SAID LAND, FOR' THE PURPOSE OF MINING, DRILLING, EXPLORING OF SAID LAND, FOR THE PURPOSE OF MINING, DRILLING OR EXTRACTING SUCH OIL, GAS, MINERALS AND OTHER HYDROCARBON SUBSTANCES OR OTHER USE OF OR RIGHTS IN OR TO ANY PORTION OF THE SURFACE OF SAID LAND TO A DEPTH OF 500 FEET BELOW THE SURFACE THEREOF, AS RESERVED IN THE DEED FROM VOLK-MCLAIN COMMUNITIES, INC., 'FO ALBERT P. JURS JR. AND CHARLOTTE M. JURS, HIS WIFE, RECORDED MARCH 22, 1967, REEL 1934 OR, IMAGE 478 (AZ/25603). AP No.: 941-0210-016 .... Page 3 Order No.: 56901-52990469-PRT At the date here°f exceptions to coverage in addition to the printed exceptions and exclusions · contained in said policy form would be as follows: 1. General and SpeCial Property .Taxes, and any assessments collected with taxes, including utility assessments, for the fiscal year 2002 - 2003. Total Amount: $9,394.82 , First-Installment: $4,697.41 Not Yet Due or Payable Second Installment: $4,697.41 Not Yet Due or Payable Land: $135,266.00 Improvements: $727,944.00 Code Area: 26-001 Parcel Number: 941-0210-016 Bill/Statement Number: 399641-00 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. Covenants, Conditions and... Restrictions (but deleting therefrom any covenant, COndition or restriction, indicating preference, limitation, or discrimination, based on race, color, religion, sex, handicap, familial status, or national origin to the extent such covenants, conditions, or restrictions violate 42 U.S.C. 3604 (c)) as set forth in the document: Recorded: June 4, 1965 Instrument No.: AX-76907 Book: -% 1520 Page: 333 Said covenants, conditions and restrictions were modified by a document: , Recorded: June 10, 1965 Instrument No.: AX-79846 Book: 1524 Page: 979 4. An easement affecting the portion of said land and for the purpose stated herein, and incidental ,' purposes. In Favor of:' Socony Mobil Oil Company, Inc., a New York ' Corporation No representation is made as to the present ownership of said'e~isement. Purpose: Drainage of surface water Recorded: December 29, 1965 Instrument No.: AX177503 Book: 1673 Page: 419 Affects: The Northeastern twelve feet of premises Page 4 Order No.: 56901-52990469-PRT 5. Covenants, Conditions and Restrictions (but deleting therefrom any covenant, condition or · restriction indicating preference, limitation, or discrimination, based on race, colorl religion, sex, handicap, familial status, or national origin to the extent such covenants, conditions, or restrictions violate 42 U.S.C. 3604 (c)) as set forth in the document: Recorded: March 22, 1967 'Instrument No.: AX 25603 Book: 1934 Page: 478 6. The Unrecorded Lease by and between the parties named herein, for the term and upon the Terms, Covenants and Conditions therein provided: Disclosed By: Collateral Assignment of Lease Type of Lease: Not disclosed Dated: None Shown Lessor: Not disclosed Lessee: Independent Freightway, Inc., a Delaware corporation Term: Not disclosed ' Recorded: September 21, 1990 .... Instrument No.: 90252484. The present ownership of the Leasehold created by said Lease and other matters affecting the interest of the Lessee are not shown herein. 7. The Unrecorded Lease by and between the parties named herein, for the term and upon the Terms, Covenants and Conditions therein provided: Disclosed By: Financing Statement , Type of Lease: Not disclosed Dated: None Shown Lessor: Not disclosed Lessee: Ramesh S. Pate[, Mrudula R. Patel and BMU Telepagers Term: .Not disclosed Recorded: March 10, 1995 Instrument No.: 95-054863 The present ownership of the Leasehold created by said Lease and other matters affecting the interest of the Lessee are not shown herein. 8. Any invalidity or defect in the title of the vestees in the event such trust is invalid or fails to confer sufficient powers in the trustees, or in the event there is a lack of compliance with the terms and pro.visions of the trust instrument. This company will require a Certification of Trust (pursuant to California Probate Code Section 18100.5) from the current trustee(s) stating said trust is in full force and effect and there have been no changes except as set forth. · 9. Any rights, interests or claims of parties in possession of the land not shown by the public records. 10. , AnY facts, rights, interests or claims which a correct survey would show. Page 5 Order No.: 56901-52990469-PRT INFORMATIONAL NOTES: A. There is located on said land a commercial structure known as 7033 Village Parkway~ Dublin, ' California. B. There are no conveyances affecting said land recorded within twenty-four (24) months of the date of this report. C. This charge for a policy of title insurance, .if issued through this title order, will b~ based on the basic insurance rate. D. City Transfer Tax: The following City Charged Transfer -Tax is in addition to the Normal Transfer Tax. The tax is based on the full value of the transfer without allowance for liens or encumbrances assumed - the fee shown is the fee per th'ousand dollars of value or fraction thereof. The rates shown are subject to change by the city at any time. CiTY FEE Alameda $ 5.40 Albany $ 8.50 Berkeley $15.00 Hayward $ 4.50 Oakland $15.00 Piedmont $13.00 ,San Leandro ~ $ 6.00 · Page 6 Order No.: 56901-52990469-PRT GOOD FUNDS LAW CALIFORNIA ASSEMBLY BILL 512 ("AB5~2") IS EFFECTIVE ON JANUARY 1, 1990. UNDER AB512, NORTH AMERICAN TITLE COMPANY, INC. ("NORTH AMERICAN TITLE COMPANY, INC.") MAY ONLY MAKE FUNDS AVAILABLE FOR MONETARY DISPERSAL- IN ACCORDANCE WITH THE FOLLOWING RULES: * SAME DAY AVAILABILITY - DISBURSEMENT ON THE DATE OF DEPOSIT IS ALLOWED O~LY WHEN FUNDS ARE DEPOSITED TO NORTH AMERICAN TITLE COMPANY ("NORTH AMERICAN TITLE COMPANY, INC.") IN CASH OR BY ELECTRONIC TRANSFER (WIRE). BEAR IN MIND THAT CASH WILL BE ACCEPTED FROM CUSTOMERS ONLY UNDER SPECIAL CIRCUMSTANCES AS INDIVIDUALLY APPROVED BY MANAGEMENT. * NEXT DAY AVAILABILITY - IF FUNDS ARE DEPOSITED TO NORTH AMERICAN TITLE COMPANY, INC. BY CASHIER'S CHECKS, CERTIFIED CHECKS, OR TELLER'S CHECKS, DISBURSEMENT MAY BE ON THE NEXT BUSINESS DAY FOLLOWING DEPOSIT. A "TELLER'S CHECK" IS ONE DRAWN BY AN INSURED FINANCIAL INSTITUTION AGAINST ANOTHER INSURED FINANCIAL INSTITUTION (E.G., A SAVINGS AND LOAN FUNDING WITH A CHECK AGAINST A FDIC INSURED BANK). * 2-5 DAY AVAILABILITY (REGULATION CC). IF THE DEPOSIT IS MADE BY CHECKS OTHER THAN THOSE DESCRIBED IN PARAGRAPHS 1 AND 2 ABOVE, DISBURSEMENT MAY OCCUR ON THE DAY WHEN FUNDS MUST BE MADE AVAILABLE TO DEPOSITORS UNDER FEDERAL RESERVE REGULATION CC. THIS' REQUIRES A "HOLD" ON SOME CHECKS OF 2-5 DAYS OR LONGER IN SOME INSTANCES. PERSONAL CHECKS, DRAFTS, PRIVATE CORPORATION AND COMPANY CHECKS, AND FUNDING CHECKS FROM MORTGAGE COMPANIES THAT ARE NOT TELLER'S CHECKS ARE AMONG THOSE CHECKS SUBJECT TO SUCH HOLDS. (FOR FURTHER DETAILS, CONSULT CHAPTER 598, STATUTES OF 1989.) NOTE: THE ABOVE GUIDELINES ARE IN CONFORMITY WITH THOSE ISSUED BY THE DEPARTMENT OF INSURANCE FOR ALL CALIFORNIA ~TITLE INSURANCE AND CALIFORNIA TITLE COMPANIES. PRELIMINARY CHANGE OF OWNERSHIP REPORT NOTE: ON OR AFTER JULY 1, 1985, THE COUNTY RECORDER'S OFFICE WILL CHARGE, IN ADDITION TO THE REGULAR CHARGES, AN EXTRA $20.00 RECORDING FEE, UNLESS A DOCUMENT EVIDENCING A CHANGE OF OWNERSHIP IS ACCOMPANIED BY A PRELIMINARY CHANGE OF OWNERSHIP REPORT. tN LIEU OF SAID REPORT, SIGNED BY THE TRANSFEREE, THE RECORDER WILL ACCEPT AN AFFIDAVIT THAT THE TRANSFEREE IS NOT A RESIDENT OF CALIFORNIA. TITLE BILLINGS WiLL BE ADJUSTED TO REFLECT SUCH ADDITIONAL FEES WHEN APPLICABLE.. '~'~ IRS FORM 1099 ' ' BEFORE THE TRANSACTION ~ONTEMPLATED BY THIS REPORT CAN BE CLOSED, THE SELLEPJBORROWER MUST FURNISH A TAXPAYER IDENTIFICATION NUMBER TO US SO THAT WE CAN FILE AN IRS FORM 1099, OR ITS EQUIVALENT, WITH THE INTERNAL REVENUE SERVICE. THIS PROCEDURE IS REQUIRED BY SECTION 6045 OF THE INTERNAL REVENUE SERVICE. NOTICE OF A WITHHOLDING REQUIREMENT THIS IS A NOTICE OF A WITHHOLDING REQUIREMENT (CALIFORNIA REVENUE AND TAXATION CODE SECTIONS 18862) ON SALES OF REAL PROPERTY. IN ACCORDANCE WITH SECTION 18662 OF THE REVENUE AND TAXATION CODE, A BUYER MAY BE REQUIRED TO WITHHOLD AN AMOUNT EQUAL TO 3 113 PERCENT OF THE SALES PRICE, IN THE CASE OF A DISPOSFrlON OF CALIFORNIA REAL PROPERTY INTEREST BY EITHER: * A SELLER WHO IS AN INDIVIDUAL WITH A LAST KNOWN STREET ADDRESS OUTSIDE OF CALIFORNIA OR WHEN THE DISBURSEMENT INSTRUCTIONS AUTHORIZE THE PROCEEDS BE SENT TO A FINANCIAL iNTERMEDIARY OF THE SELLER, OR * A CORPORATE SELLER WHICH HAS NO PERMANENT PLACE OF BUSINESS IN CALIFORNIA, OR FOR FAILURE TO WITHHOLD, THE BUYER MAY BECOME SUBJECT TO A PENALTY IN AN AMOUNT EQUAL TO THE GREATER OF 10 PERCENT OF THE AMOUNT REQUIRED TO BE WITHHELD OR FIVE HUNDRED DOLLARS ($500). HOWEVER, NOTWITHSTANDING ANY OTHER PROVISION INCLUDED IN THE CALIFORNIA STATUTES REFERENCED ABOVE, NO BUYER WILL BE REQUIRED TO WITHHOLD ANY AMOUNT OR BE SUBJECT TO PENALTY FOR FAILURE TO WITHHOLD IF: THE SALES PRICE OF THE CALIFORNIA REAL PROPERTY CONVEYED DOES NOT EXCEED ONE HUNDRED THOUSAND DOLLARS ($100,000), OR THE SELLER EXECUTES A WRITTEN CERTIFICATE, UNDER PENALTY OF PERJURY, CERTIFYING THAT THE SELLER IS A RESIDENT OF CALIFORNIA. OR IF A CORPORATION, HAS A PERMANENT PLACE OF BUSINESS IN CALIFORNIA OR * THE SELLER, WHO IS AN INDIVIDUAL, EXECUTES A WRI~-~EN CERTIFICATE, UNDER PENALTY OF PERJURY, THAT THE CALIFORNIA REAL PROPERTY BEING CONVEYED IS THE SELLER'S PRINCIPAL RESIDENCE (AS DEFINED IN SECTION 1034. OF THE INTERNAL REVENUE CODE). THE SELLER IS SUBJECT TO PENALTY FOR KNOWINGLY FILING A FRAUDULENT CERTIFICATE FOR THE PURPOSE OF AVOIDING THE WITI~IHOLDING REQUIREMENT. THE CALIFORNIA STATUES REFERENCED ABOVE INCLUDE PROVISIONS WHICH AUTHORIZE THE FRANCHISE TAX BOARD TO GRANT REDUCED WITHHOLDING AND WAIVERS FROM WITHHOLDING ON A CASE-BY-CASE BASIS. IN THE EVENT THE BUYER REQUIRES WITHHOLDING OF THE 3 1/3 PERCENT OF SALES PRICE FROM THE SELLERS PROCEEDS, THE BUYER IS REQUIRED TO FILE A COPY OF FORM FTB597 WiTH THE FRANCHISE TAX BOARD ALONG WITH THE WITHHOLDING AMOUNT DUE NO LATER THAN THE 20TH DAY OF THE MONTH FOLLOWING THE MONTH IN WHICH THE WITHHOLDING OCCURRED, UNLESS THE SELLER HAS REQUESTED A WAIVER. iF THE SELLER HAS REQUESTED A WAIVER, THE FRANCHISE TAX BOARD, WITHIN 45 DAYS, WILL EITHER AUTHORIZE A REDUCED AMOUNT, OR NO AMOUNT, OR DENY THE REQUEST, AT WHICH TIME THE AMOUNT WITHHELD ALONG WITH COPY A OF FORM FTB 597 MUST BE SENT TO THE FRANCHISE TAX BOARD, AT THE FOLLOWING ADDRESS: FRANCHISE TAX BOARD WITHHOLDING AT SOURCE UNIT, P.O. BOX 651, SACRAMENTO, CALIFORNIA 95812-0651 (916) 845- 4900. Page 7 Order No.: 56901-52990469-PRT ASSESSOR'S MAP 941 co~. ^,...o,.~H,~ ' ' / TRACT 2~8 [~.~l E M.lO32(~e ~.~ ' ' / ~ 21 ~ . ~ ~ '~t '~ .... 207. 1401 14.00 2O5 De$cripEon: Alameda, CA Assessor Map 941.~10 Page: g of On:ter:. ~£-00000090469 Commen~: TOTRL P. Page 8 Order No.: 56901-52990469-PRT TRACT 2662 NATCO NOTES: DON'T DELAY YOUR CLosE OF ESCROW/ IF ANY OF THE FOLLOWING ITEMS AFFECT YOUR TRANSACTION, PLEASE NOTIFY YOUR ESCROW OFFICER AS SOON AS POSSIBLE, I, Ongoing Construction The Title Company will require, as a minimum, the following prior to insuring: A. ' Valid Notice of Completion verified by inspection and expiration of 60 days from recordation of said notice or; B. Approved Indemnities from BorrowedSeller, approved financial statement not ove~ one year.old and a waiver of.lien rights from the general contractor. 1. The Title Company may also require proof of payment of subcontractors, indemnity and financial statement from the general contractor, a copy of the contract and the with-holding of.a sum of money, to cover the contract until the mechanics lien period has e,~ired, with which to pay filed mechanics liens, or other assurances to'ne determined on a case by case basis. !I. Bankruptcy The Title Company will require, as a minimum, the following prior to insuring: A. The bankruptcy case be closed or, B. An order from the bankruptcy court verifying the transaction, with a demand placed into escrow by the trustee. 1. Escrow may not close until 15 days have elapsed from the order and the file has been checked to verify that there are no objections to said order. .' !I!. Abstracts of Judgment, Liens, Tax Liens The Title Company will require, as a minimum, the following prior to insuring: A. Proof that the buyer/seller is not the same party as on the recorded liens. 1. This is accomplished by the buyedselledborrower completely filling out and signing a statement of information. B. The items are to paid off in escrow. C. The items are to be subordinated to the new transaction. IV. Community Property California is a community property state. A. A quitclaim from one spouse to another must specifically quitclaim any community property interest. B. An interlocutory decree of divorce specifically granting the property to one spouse is sufficient if a final decree is issued and recorded in the county. DID YOU KNOW? Any of the following situations could cause a substantial delay in close of escrow. The earlier we are made aware of potential problems, the earlier the issues can be dealt with to ensure a smooth and timely close of your transaction. * Are your principals trying to accomplish, a tax deferred exchange? if so, 'have they chosen an intermediary and who is it? * Will any of the principals be using a Power of Attorney? * Are any'of the vested owners deceased or in any way incapacitated? * Do all of the principals who will be signing have a current.photo I.D. or Driver's License? * Have any of the principals recently filed for bankruptcy? * Are the sellers of this transaction residents of California? * Has there been a change in marital status of any of the vested Owners or will we be adding anyone to title, i.e. co-signers, additional insured, etc.? * ls the property currently vested in a trust or will the new buyer/borrower vest in a trust? * Are any of the trustees of th~trust deceased or incapacitated? * Will this transaction involve a short sale? , * Will there be a new entity formed, i.e.~partnership, corporation? * Will all of the Principals be available to sign or will we be Federal Expressing documents to another state/country? if so, where? If you have any other information which may be useful to us, please contact your escrow officer as soon as possible. Our goal is to make your transaction as easy and trouble-flee as possible. We appreciate your business and hope that you find North American Title Company your company of choice for ali of your title and escrow needs. Private. Policy Notice l~ ~'~'4. >~ (as of July 1, 2001) We at the North American Title family of companies take YOUr privacy very seriously. We do not share your private information .with anyone except as necessary'to complete your real property, title insurance and escrow transaction. OUR PRIVACy POLICIES AND PRACTICES Information we collect and Sources from which we collect it:. We collect nonpublic personal information about you from the following sources: · Information we receive from you on applications, or other forms. · Information about your transactions with us, our affiliates or others. · Information from non-affiliated third parties relating to your transaction. "Nonpublic personal information" is nonpublic information about you that we obtain in connection with providing a product or service to you. 2. What information we disclose and t° whom we disclose it: We do not disclose any nonpublic personal information about you to either our affiliates or non-affiliates without your express consent, except as permitted or required by law. We may disclose the nonpublic personal information we collect, as described above, to persons or companies that perform services on our behalf regarding your transaction? "Our affiliates" are .companies ~ith which we share common ownership and which offer real property, title insurance, or~scrow services. 3. Our securityprocedures: We restrict access to your nonpublic personal information and only allow disclosures to persons and companies as permitted or required by law to assist in providing products or services to you. We maintain physical, electronic, and procedural safeguards to protect your nonpublic personal information. 4. Your right to access your personal information: You have the right to review your personal information that we record about you. If you wish to review that information, please contact your local North American Title office and give us a reasonable time to make that information available to you. If you believe any !nformation is incorrect, notify us, and if we agree, we will correct it. If we disagree, we will advise you in writing why we disagree. 5. Customer acknowledgment: Your receipt of a copy of. the preliminary report, commitment, your policy of insurance, or escrow documents accompanied by this Notice will constitute your acknowledgment of receipt of this Privacy Notice. ~North American Title may also share your information with an insurance institution, credit reporting agency, insurance regulatory authority, taw enforcement, other governmental authority, actuary, or other research organization for purposes of detecting or preventing fraud, crimes, or misrepresentations in connection with an insurance or real estate transaction, resolving claims or service disputes, investigating suspected illegal or unlawful activities, or for conducting actuarial or research studies. EXHIBIT A (Rev. 02-04-02) 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, ordinahce 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; (il) 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 area of the land or any parcel of which the ]and 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 exerdse 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 he 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 irtsur.ed 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 adses out of the transaction vesting in the insured the estate of interest insured by this POlicy or the transaction creating the interes! of the insured lender, by reason of the operation of federal bankruptcy, state insolvency or similar creditors' rights law. EXCEPTIONS FROM COVERAGE - SCHEDULE B, PART I This policy does not insure agains! loss or damage (and the Company witl 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, interest or claims which are not shown by .the public records but which could be ascertained by an inspection of the land which may be asserted by persons in possession thereof. 3. Easements, liens or encumbrances, or claims thereof, which are not shown by the public records. 4. Discrepancies, conflicts in boundary lines, shortage in area, encroachments, or any other facts which a correct survey would disclose, and which are not shown by the public records. 5. (a) Unpatented ~nining claims; (b) reservations or exceptions in patents oi' 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. CL.TA HOMEOWNER'S POLICY OF TITLE INSURANCE (6/2/98) '~ t ,~'~'~-- ALTA HOMEOWNER'S POLICY OF TITLE INSURANCE (10/17/98) EXCLUSIONS ,n addition to the Exceptions in Schedule B, You are not insured against loss, costs, attorneys' fees, and expenses resulting from: 1. Governmental police power, and the existence or violation of any law or government regulation. This includes ordinances, laws and regulations concerning: (a) , building (b) zoning (c) Land use (d) improvements on Land (e) Land division (f) environmental protection This F_'(dusion 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 d. oes not limit the coverage described in Covered Risk 14, 15, 16, 17 or 24. 2. The failure of Your existing structures, Or any part of them, to be constructed in accordance with applicable building codes.~ This Exclusion does not apply to violations of building codes if notice of the violation appears in the Public Records at the Policy Date. 3. The right to take the Land by condemning it, unless: (a) a notice of exercising the right appears in the Public Records at the Policy Date; or (b) the taking happened before the Policy Date and is binding on You if You bou.ght the Land without Knowing of the taking. 4. Risks: (a) that are created, allowed, or agreed to by You, whether or not they appear in the Public Records; (b) that are Known to You at the Policy Date, but not to Us, unless they appear in the Public Records at the Policy Date; (c) that result in no loss to You; or (d) that first occur after the Policy Date - this 'does not limit the coverage described in Covered Risk 7, 8.d, 22, 23, 24 or 25. 4, Failure to pay value for Your Title. '%~' 5. Lack of a right: (a) to any Land outside the area specifically described and referred to in paragraph 3 of Schedule A; and (b) in streets, alleys, or waterways that touch the Land. 7. Water fights, or claims to water, or title on, in, or under the land, whether or not the matters are disclosed by public records. This ExCusion does not limit the coverage described in Covered Risk 11 or 18. AMERICAN LAND TITLE ASSOCIATION RESIDENTIAL TITLE INSURANCE POLICY (611187) 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: o 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 dght appears in the public records on the Policy Date · the taking happened prior the Policy Date and is binding on you if you bought the land without knowing of the taking 3. Title risks: · ' a notice of exercising the right appears in the public records on the Policy Date · 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 pubiic 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 TilJe Risks. 4. Failure to pay value for your title. 5. Lack of a right · to any land outside the area specifically described and referred to in Item 3 of Schedule A, or - in streets, alleys, or waterways that touch your land This exclusion does not limit the access coverage in Item 5 of Covered Title Risks. · AMERICAN LAND TITLE ASSOCIATION LOAN POLICY (10/17/92)WITH ALTA ENDORSEMENT FORM 1 COVERAGE "'/~ ~'~ ' ~? AND A~ERICAN LAND TITLE ASSOCIATION LEASEHOLD LOAN POLICY (10/17/92)WITH ALTA 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 ad,se 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;.(il) 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 exerdse 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 the Date of Policy which would be binding on the dghts 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 wdting to the Company by the insured claimant prior to the date the insured ciai~nant became an insured under, this policy; (c) resulting in no loss or damage to the insured r. Jaimant; (d) attaching or created subsequent to Date of Policy (except to the extent that this policy insures the pdodty of the lien of the insured mortgage over any statutory lien for services, labor or matedal or the extent insurance is afforded herein as to assessments for street improvements under construction or completed at Date of Policy); or (e) resulting in loss or damage which would not have been sustained if the insured claimant had paid value for the insured mortgage. 4. Unenforceabitity of the lien of the mortgage because of the inability or failure of the insured at Date of Pollcy. or the inability or failure of any subsequent owner of the indebtedness, to corf~y 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 adses 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 pdodty 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 contracte~ 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 impad notice to a purchaser for value or a iudgment or lien creditor. The above policy forms may be issued to afford either Standard Coverage or Extended Coverage. In addition to the above Exclusion~ from Coverage, the Exceptions from Coverage in a Standard Coverage policy will also include the following General Exceptions: EXCEPTIONS FROM COVERAGE This policy does not insure against loss or damage (and the Company will not pay costs, attorneys' fees or expenses) which arise by reason of:. 1. Taxes or assessments which are not shown as existing liens by the records of any taxing authority that levies taxes or assessments on real property or by the public records. Pro~eedi'ngs 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, dghts, interests or claims which are not shown by the public records but which could be ascertained by an inspection of the land or by making inquiry of persons in possession thereof. 3. Easements, liens or encumbrances, or claims thereof, which are not shown by the public records. 4. 'Discrepancies, 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. AMERICAN LAND TITLE ASSOCIATION OWNER'S POLICY (10117/92) AND AMERICAN LAND TITLE ASSOCIATION LEASEHOLD OWNER'S POLICY (10/17/92) EXCLUSIONS FROM COVERAGE The following matters are expressly excluded from the coverage of this policy and the company will not pay loss of 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 a~d 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, of 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 reco~'ded in the public records at Date of PolicY, but not excluding from coverage any taking which has occurred prior the 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, bat known to the insured claimant and not disclosed in writing to the Company by the insured claimant prior to the date of the insured claimant became an insured under this policy; (c) resulting in no loss or damage to the insured claimant; (d) attaching or creating 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~editors' dghts law that is based on: (i) the transaction c~eating 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 or transfer, or (b) of st~ch recordation to impart notice to a purchaser for value or a judgment or lien creditor. The above policy forms may,be issued to afford either Standard Coverage or Extended Coverage. In addition to the above Exclusions from Coverage, the Exceptions from Coverage in a Standard Coverage Policy will also include the following General Instructions: EXCLUSIONS FROM COVERAGE This policy does not insure against loss or damage (and the Company will not pay costs, attorneys' fees or expenses) which adse 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 show~ by the records of such agenCY or by the public records. 2. Any facts, rights, interests or claims Which are not shown 'by the public records but which could be ascertained by an inspection of the land or by making inquiry of persons in possession thereof. 3. Easements, liens or encumbrances, or claims thereof, which are not shown by the public records. 4. Discrepancies, conflicts in boundary lines, shortage in area, encroachments, or any other facts which a correct survey would disclose, and which are notshown 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. ALTA EXPANDED COVERAGE RESIDENTIAL LOAN POLICY (10/1310I) EXCLUSIONS FROM COVERAGE The following matters are expressly exclu~led from the co{,erage of this policy and the company will not pay loss or damage, costs, att.omeys' 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, regular!rig, 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 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 Iand 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. (c) 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 viotation 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 pdor the 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 wdting [o the Company by the insured claimant pdor to the date of the insured claimant became an insured under this policy; (c) resulting in no loss or darrta~e to the insured claimant; (d) attaching or creating subse~luent 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 (f) 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. Unenforceabi[ity 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 govemmental 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, unenforceabitity or lack of pdodty 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 cc~structad 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 violaUon appears in the public records at Date of Policy. ..... ~ox .... I 28-5 GAL 7 ...... ' SIDEWALK / ,D~W TYPE A Q VILLAGE PARKWAY