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HomeMy WebLinkAboutPA2022-0165_20220811_Preliminary Title ReportOrder Number: NCS-1111580-HOU1 Page Number: 1 First American Title Insurance Company First American Title Insurance Company National Commercial Services 601 Travis, Suite 1875 Houston, TX 77002 February 05, 2022 Jeri Walker Kane Russell Coleman and Logan 1601 Elm Street, Suite 3700 Dallas, TX 75201 Phone: (214)777-0093 Fax: (214)777-4299 Customer Reference: 4501 Jamboree Road, Newport Beach, CA Title Officer: Hugh C. Talton Phone: (713)402-4385 Fax No.: (866)899-6403 E-Mail:htalton@firstam.com Escrow Officer: Sharon Mork Phone: (713)402-4399 Buyer: Starbucks Corporation Property: 4501 Jamboree Road, Newport Beach, CA PRELIMINARY REPORT In response to the above referenced application for a policy of title insurance, this company hereby reports that it is prepared to issue, or cause to be issued, as of the date hereof, a Policy or Policies of Title Insurance describing the land and the estate or interest therein hereinafter set forth, insuring against loss which may be sustained by reason of any defect, lien or encumbrance not shown or referred to as an Exception below or not excluded from coverage pursuant to the printed Schedules, Conditions and Stipulations of said Policy forms. The printed Exceptions and Exclusions from the coverage and Limitations on Covered Risks of said policy or policies are set forth in Exhibit A attached. 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 a Maximum Dollar Limit of Liability for certain coverages are also set forth in Exhibit A. Copies of the policy forms should be read. They are available from the office which issued this report. PA2022-0165 Order Number: NCS-1111580-HOU1 Page Number: 2 First American Title Insurance Company Please read the exceptions shown or referred to below and the exceptions and exclusions set forth in Exhibit A of this report carefully. The exceptions and exclusions are meant to provide you with notice of matters which are not covered under the terms of the title insurance policy and should be carefully considered. It is important to note that this preliminary report is not a written representation as to the condition of title and may not list all liens, defects, and encumbrances affecting title to the land. This report (and any supplements or amendments hereto) 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. PA2022-0165 Order Number: NCS-1111580-HOU1 Page Number: 3 First American Title Insurance Company Dated as of January 27, 2022 at 7:30 A.M. The form of Policy of title insurance contemplated by this report is: To Be Determined A specific request should be made if another form or additional coverage is desired. Title to said estate or interest at the date hereof is vested in: Todd I. Schiffman, Trustee and Successor Trustee of the Todd I. Schiffman Living Trust dated December 23, 1999 The estate or interest in the land hereinafter described or referred to covered by this Report is: Fee The Land referred to herein is described as follows: (See attached Legal Description) At the date hereof exceptions to coverage in addition to the printed Exceptions and Exclusions in said policy form would be as follows: 1.General and special taxes and assessments for the fiscal year 2022-2023, a lien not yet due or payable. 2.General and special taxes and assessments for the fiscal year 2021-2022. First Installment: $13,653.47, PAID Penalty: $0.00 Second Installment: $13,653.47, OPEN Penalty: $0.00 Tax Rate Area: 07-088 A. P. No.: 445-161-03 3.The lien of supplemental taxes, if any, assessed pursuant to Chapter 3.5 commencing with Section 75 of the California Revenue and Taxation Code. 4.An easement for public utilities and incidental purposes, recorded as Book 1522, Page 527 of Official Records. In Favor of: Southern California Edison Company Affects: as described therein 5.An easement for perpetual air or flight easement, also referred to as "navigation rights" and incidental purposes in the document recorded March 17, 1964 as Book 6965, Page 721 of Official Records. 6.An easement shown or dedicated on the map of Tract No. 7953 recorded October 31, 1972 and on file in Book 310, Page 7-11, of Tract Maps. PA2022-0165 Order Number: NCS-1111580-HOU1 Page Number: 4 First American Title Insurance Company For: Private Drive and incidental purposes. 7.An easement for public utilities and incidental purposes, recorded February 11, 1974 as Book 11073, Page 218 of Official Records. In Favor of: Southern California Edison Company Affects: as described therein 8.Abutter's rights of ingress and egress to or from Jamboree Boulevard except at private drive, have been dedicated or relinquished on the map of Parcel Map on file in Book 108, Page 27-28, of Parcel Maps. 9.An easement shown or dedicated on the map of Parcel Map recorded December 15, 1977 and on file in Book 108, Page 27-28, of Parcel Maps. For: Bicycle and pedestrian purposes and incidental purposes. 10.Covenants, conditions, restrictions and easements in the document recorded January 03, 1978 as Book 12516, Page 1162 of Official Records, which provide that a violation thereof shall not defeat or render invalid the lien of any first mortgage or deed of trust made in good faith and for value, but deleting any covenant, condition or restriction indicating a preference, limitation or discrimination based on race, color, religion, sex, handicap, familial status, national origin, sexual orientation, marital status, ancestry, source of income or disability, to the extent such covenants, conditions or restrictions violate Title 42, Section 3604(c), of the United States Codes or Section 12955 of the California Government Code. Lawful restrictions under state and federal law on the age of occupants in senior housing or housing for older persons shall not be construed as restrictions based on familial status. 11.An easement for right of way to construct, use, maintain, operate, alter, add to, repair, replace, reconstruct, inspect and remove at any time and from time to time underground electrical supply systems and communication systems (hereinafter referred to as "systems") consisting of wires, underground conduits, cables, vaults, manholes, handholes and including above ground enclosures, markers and concrete pads and other appurtenant fixtures and equipment necessary or useful for distributing electrical energy and for transmitting intelligence by electrical means and incidental purposes, recorded May 05, 1978 as Instrument No. 9042 as Book 12663, Page 1499 of Official Records. In Favor of: Southern California Edison Company, a corporation, its successors and assigns Affects: as described therein 12.An easement for exclusive easement for passage and incidental purposes in the document recorded May 26, 1978 as Instrument No. 38246 as Book 12690, Page 854 of Official Records. 13.A Deed of Trust to secure an original indebtedness of $1,050,000.00 recorded January 29, 2013 as Instrument No. 2013000057021 of Official Records. Dated: January 24, 2013 Trustor: Todd I. Schiffman, Trustee and Successor Trustees of the Todd I. Schiffman Living Trust December 23, 1999 Trustee: American Security Bank Beneficiary: American Security Bank A document entitled "Assignment of Leases and Rents" recorded January 29, 2013 as Instrument No. 2013000057022 of Official Records, as additional security for the payment of the indebtedness secured by the deed of trust. PA2022-0165 Order Number: NCS-1111580-HOU1 Page Number: 5 First American Title Insurance Company A document recorded October 27, 2021 as Instrument No. 2021000654355 of Official Records provides that Citizens Business Bank was substituted as trustee under the deed of trust. The effect of a document entitled "Substitution of Trustee and Full Reconveyance", recorded October 27, 2021 as Instrument No. 2021000654355 of Official Records. Note: The Company will require satisfactory proof of full payment of the debt secured by said mortgage or deed of trust prior to removing this exception or insuring the contemplated transaction. 14.Water rights, claims or title to water, whether or not shown by the public records. 15.Rights of parties in possession. PA2022-0165 Order Number: NCS-1111580-HOU1 Page Number: 6 First American Title Insurance Company INFORMATIONAL NOTES ALERT - CA Senate Bill 2 imposes an additional fee of $75 up to $225 at the time of recording on certain transactions effective January 1, 2018. Please contact your First American Title representative for more information on how this may affect your closing. 1.According to the latest available equalized assessment roll in the office of the county tax assessor, there is located on the land a(n) Commercial Structure known as 4501 Jamboree Road, Newport Beach, CA. 2.According to the public records, there has been no conveyance of the land within a period of twenty- four months prior to the date of this report, except as follows: None 3.This preliminary report/commitment was prepared based upon an application for a policy of title insurance that identified land by street address or assessor's parcel number only. It is the responsibility of the applicant to determine whether the land referred to herein is in fact the land that is to be described in the policy or policies to be issued. 4.Should this report be used to facilitate your transaction, we must be provided with the following prior to the issuance of the policy: A.WITH RESPECT TO A CORPORATION: 1.A certificate of good standing of recent date issued by the Secretary of State of the corporation's state of domicile. 2.A certificate copy of a resolution of the Board of Directors authorizing the contemplated transaction and designating which corporate officers shall have the power to execute on behalf of the corporation. 3.A certificate of revivor and a certificate of relief from contract voidability issued by the Franchise Tax Board of the State of California. 4.Requirements which the Company may impose following its review of the above material and other information which the Company may require. B.WITH RESPECT TO A CALIFORNIA LIMITED PARTNERSHIP: 1.A certified copy of the certificate of limited partnership (form LP-1) and any amendments thereto (form LP-2) to be recorded in the public records; 2.A full copy of the partnership agreement and any amendments; 3.Satisfactory evidence of the consent of a majority in interest of the limited partners to the contemplated transaction; 4.A certificate of revivor and a certificate of relief from contract voidability issued by the Franchise Tax Board of the State of California. 5.Requirements which the Company may impose following its review of the above material and other information which the Company may require. C.WITH RESPECT TO A FOREIGN LIMITED PARTNERSHIP: 1.A certified copy of the application for registration, foreign limited partnership (form LP-5) and any amendments thereto (form LP-6) to be recorded in the public records; 2.A full copy of the partnership agreement and any amendment; 3.Satisfactory evidence of the consent of a majority in interest of the limited partners to the contemplated transaction; 4.A certificate of revivor and a certificate of relief from contract voidability issued by the Franchise Tax Board of the State of California. PA2022-0165 Order Number: NCS-1111580-HOU1 Page Number: 7 First American Title Insurance Company 5.Requirements which the Company may impose following its review of the above material and other information which the Company may require. D.WITH RESPECT TO A GENERAL PARTNERSHIP: 1.A certified copy of a statement of partnership authority pursuant to Section 16303 of the California Corporation Code (form GP-I), executed by at least two partners, and a certified copy of any amendments to such statement (form GP-7), to be recorded in the public records; 2.A full copy of the partnership agreement and any amendments; 3.Requirements which the Company may impose following its review of the above material required herein and other information which the Company may require. E.WITH RESPECT TO A LIMITED LIABILITY COMPANY: 1.A copy of its operating agreement and any amendments thereto; 2.If it is a California limited liability company, a certified copy of its articles of organization (LLC-1) and any certificate of correction (LLC-11), certificate of amendment (LLC-2), or restatement of articles of organization (LLC-10) to be recorded in the public records; 3.If it is a foreign limited liability company, a certified copy of its application for registration (LLC-5) to be recorded in the public records; 4.With respect to any deed, deed of trust, lease, subordination agreement or other document or instrument executed by such limited liability company and presented for recordation by the Company or upon which the Company is asked to rely, such document or instrument must be executed in accordance with one of the following, as appropriate: (i)If the limited liability company properly operates through officers appointed or elected pursuant to the terms of a written operating agreement, such documents must be executed by at least two duly elected or appointed officers, as follows: the chairman of the board, the president or any vice president, and any secretary, assistant secretary, the chief financial officer or any assistant treasurer; (ii)If the limited liability company properly operates through a manager or managers identified in the articles of organization and/or duly elected pursuant to the terms of a written operating agreement, such document must be executed by at least two such managers or by one manager if the limited liability company properly operates with the existence of only one manager. 5.A certificate of revivor and a certificate of relief from contract voidability issued by the Franchise Tax Board of the State of California. 6.Requirements which the Company may impose following its review of the above material and other information which the Company may require. F.WITH RESPECT TO A TRUST: 1.A certification pursuant to Section 18100.5 of the California Probate Code in a form satisfactory to the Company. 2.Copies of those excerpts from the original trust documents and amendments thereto which designate the trustee and confer upon the trustee the power to act in the pending transaction. 3.Other requirements which the Company may impose following its review of the material require herein and other information which the Company may require. G.WITH RESPECT TO INDIVIDUALS: 1.A statement of information. The map attached, if any, may or may not be a survey of the land depicted hereon. First American Title Insurance Company expressly disclaims any liability for loss or damage which may result from reliance on this map except to the extent coverage for such loss or damage is expressly provided by the terms and provisions of the title insurance policy, if any, to which this map is attached. *****To obtain wire instructions for deposit of funds to your escrow file please contact your Escrow Officer.***** PA2022-0165 Order Number: NCS-1111580-HOU1 Page Number: 8 First American Title Insurance Company LEGAL DESCRIPTION Real property in the City of Newport Beach, County of Orange, State of California, described as follows: PARCEL 2, IN THE CITY OF NEWPORT BEACH, COUNTY OF ORANGE, STATE OF CALIFORNIA, AS SHOWN ON A MAP FILED IN BOOK 108, PAGES 27 AND 28 OF PARCEL MAPS, IN THE OFFICE OF THE COUNTY RECORDER OF ORANGE COUNTY. EXCEPTING THEREFROM ALL MINERAL RIGHTS, INCLUDING WITHOUT LIMITED, ALL OIL, GAS, HYDROCARBON AND SIMILAR RIGHTS AND ALL WATER, WATER RIGHTS, GEOTHERMAL STEAM AND STEAM POWER WITHIN OR UNDERLYING SAID LAND, TOGETHER WITH THE PERPETUAL RIGHT OF DEVELOPMENT THEREOF, WITHOUT HOWEVER, THE RIGHT TO ENTER UPON THE SURFACE AND THE TOP 500 FEET OF THE SUBSURFACE OF SAID LAND, AS RESERVED IN A DEED RECORDED FEBRUARY 14, 1976, IN BOOK 12562, PAGE 1899 OF OFFICIAL RECORDS. Note: The Company is prohibited from insuring the area or quantity of the land described herein. Any statement in the above legal description of the area or quantity of land is not a representation that such area or quantity is correct, but is made only for informational and/or identification purposes. APN: 445-161-03 PA2022-0165 Order Number: NCS-1111580-HOU1 Page Number: 9 First American Title Insurance Company The First American Corporation First American Title Company Privacy Policy We Are Committed to Safeguarding Customer Information In order to better serve your needs now and in the future, we may ask you to provide us with certain information. We understand that you may be concerned about what we will do with such information - particularly any personal or financial information. We agree that you have a right to know how we will utilize the personal information you provide to us. Therefore, together with our parent company, The First American Corporation, we have adopted this Privacy Policy to govern the use and handling of your personal information. Applicability This Privacy Policy governs our use of the information which you provide to us. It does not govern the manner in which we may use information we have obtained from any other source, such as information obtained from a public record or from another person or entity. First American has also adopted broader guidelines that govern our use of personal information regardless of its source. First American calls these guidelines its Fair Information Values, a copy of which can be found on our website at www.firstam.com. Types of Information Depending upon which of our services you are utilizing, the types of nonpublic personal information that we may collect include: •Information we receive from you on applications, forms and in other communications to us, whether in writing, in person, by telephone or any other means; •Information about your transactions with us, our affiliated companies, or others; and •Information we receive from a consumer reporting agency. Use of Information We request information from you for our own legitimate business purposes and not for the benefit of any nonaffiliated party. Therefore, we will not release your information to nonaffiliated parties except: (1) as necessary for us to provide the product or service you have requested of us; or (2) as permitted by law. We may, however, store such information indefinitely, including the period after which any customer relationship has ceased. Such information may be used for any internal purpose, such as quality control efforts or customer analysis. We may also provide all of the types of nonpublic personal information listed above to one or more of our affiliated companies. Such affiliated companies include financial service providers, such as title insurers, property and casualty insurers, and trust and investment advisory companies, or companies involved in real estate services, such as appraisal companies, home warranty companies, and escrow companies. Furthermore, we may also provide all the information we collect, as described above, to companies that perform marketing services on our behalf, on behalf of our affiliated companies, or to other financial institutions with whom we or our affiliated companies have joint marketing agreements. Former Customers Even if you are no longer our customer, our Privacy Policy will continue to apply to you. Confidentiality and Security We will use our best efforts to ensure that no unauthorized parties have access to any of your information. We restrict access to nonpublic personal information about you to those individuals and entities who need to know that information to provide products or services to you. We will use our best efforts to train and oversee our employees and agents to ensure that your information will be handled responsibly and in accordance with this Privacy Policy and First American's Fair Information Values. We currently maintain physical, electronic, and procedural safeguards that comply with federal regulations to guard your nonpublic personal information. PA2022-0165 Order Number: NCS-1111580-HOU1 Page Number: 10 First American Title Insurance Company CLTA/ALTA HOMEOWNER'S POLICY OF TITLE INSURANCE (02-03-10) 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 those portions of any law or government regulation concerning: (a) building;(d) improvements on the Land;(b) zoning;(e) land division; and (c) land use;(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 are created, allowed, or agreed to by You, whether or not they are recorded in the Public Records; (b) that are Known to You at the Policy Date, but not to Us, unless they are recorded in the Public Records at the Policy Date;(c) that result in no loss to You; or (d)that first occur after the Policy Date - this does not limit the coverage described in Covered Risk 7, 8.e., 25, 26, 27 or 28. 5.Failure to pay value for Your Title. 6.Lack of 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. Your Deductible Amount Our Maximum Dollar Limit of Liability Covered Risk 16: 1% of Policy Amount or $2,500.00 (whichever is less) $10,000.00 Covered Risk 18: 1% of Policy Amount or $5,000.00 (whichever is less) $25,000.00 Covered Risk 19: 1% of Policy Amount or $5,000.00 (whichever is less) $25,000.00 Covered Risk 21: 1% of Policy Amount or $2,500.00 (whichever is less) $5,000.00 ALTA 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: (a) and use (b) improvements on the land (c) and division (d) environmental protectionThis exclusion does not apply to violations or the enforcement of these matters which appear in the public records at Policy Date. This exclusion does not limit the zoning coverage described in Items 12 and 13 of Covered Title Risks. 2.The right to take the land by condemning it, unless:(a) a notice of exercising the right appears in the public records on the Policy Date (b) the taking happened prior to the Policy Date and is binding on you if you bought the land without knowing of the taking 3.Title Risks: (a) that are created, allowed, or agreed to by you (b) that are known to you, but not to us, on the Policy Date -- unless they appeared in the public records PA2022-0165 Order Number: NCS-1111580-HOU1 Page Number: 11 First American Title Insurance Company (c) that result in no loss to you (d) that first affect your title after the Policy Date -- this does not limit the labor and material lien coverage in Item 8 of Covered Title Risks 4. Failure to pay value for your title. 5. Lack of a right: (a) to any land outside the area specifically described and referred to in Item 3 of Schedule A OR (b) in streets, alleys, or waterways that touch your land This exclusion does not limit the access coverage in Item 5 of Covered Title Risks. 2006 ALTA LOAN POLICY (06-17-06) EXCLUSIONS FROM COVERAGE The following matters are expressly excluded from the coverage of this policy, and the Company will not pay loss or damage, costs, 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. PA2022-0165 Order Number: NCS-1111580-HOU1 Page Number: 12 First American Title Insurance Company 6.Any lien or right to a lien for services, labor or material not shown by the public records. 2006 ALTA OWNER'S POLICY (06-17-06) EXCLUSIONS FROM COVERAGE The following matters are expressly excluded from the coverage of this policy, and the Company will not pay loss or damage, costs, attorneys' fees, or expenses that arise by reason of: 1.a. Any law, ordinance, permit, or governmental regulation (including those relating to building and zoning) restricting, regulating,prohibiting, or relating to i.the occupancy, use, or enjoyment of the Land;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 CoveredRisk 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 transactionvesting 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: 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 anaccurate 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. PA2022-0165 Order Number: NCS-1111580-HOU1 Page Number: 13 First American Title Insurance Company ALTA EXPANDED COVERAGE RESIDENTIAL LOAN POLICY (07-26-10) EXCLUSIONS FROM COVERAGE The following matters are expressly excluded from the coverage of this policy, and the Company will not pay 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; oriv.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 thispolicy; 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 CoveredRisk 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 bythe 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 madeafter 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 subsequentto 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, orb.a preferential transfer for any reason not stated in Covered Risk 27(b) of this policy. PA2022-0165