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HomeMy WebLinkAboutPA2023-0125_20230725_Preliminary Title Report CLTA Preliminary Report Form Order Number: NHSC-7004947 (jd) (Rev. 11/06) Page Number: 1 First American Title First American Title Company 1250 Corona Pointe Court, Suite 200 Corona, CA 92879 Brian Griley Edgewater Consulting, LLC 2596 Crestview Newport Beach, CA 92663 Customer Reference: APN's 049-183-27 and 049-183-28 Order Number: NHSC-7004947 (jd) Title Officer: Jesus Duran Phone: (951)256-5820 Fax No.: (714)481-9208 E-Mail: jduran@firstam.com Buyer: . Property: APN's 049-183-27 and 049-183-28, 2596 Crestview Drive, 2592 Arbor Drive 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. 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. Please be advised that any provision contained in this document, or in a document that is attached, linked or referenced in this document, that under applicable law illegally discriminates against a class of individuals based Order Number: NHSC-7004947 (jd) Page Number: 2 First American Title upon personal characteristics such as race, color, religion, sex, sexual orientation, gender identity, familial status, disability, national origin, or any other legally protected class, is illegal and unenforceable by law. 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. Order Number: NHSC-7004947 (jd) Page Number: 3 First American Title Dated as of June 19, 2023 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: BRIAN J. GRILEY AND ROCIO E. GRILEY, TRUSTEES OF THE BRIAN AND ROCIO GRILEY FAMILY TRUST OF 2008, AS TO TRACT A AND BRIAN J. GRILEY AND ROCIO E. GRILEY, TRUSTEES OF THE BRIAN AND ROCIO GRILEY FAMILY TRUST OF 2008 CREATED ON MARCH 18, 2008, AS TO TRACT B The estate or interest in the land hereinafter described or referred to covered by this Report is: A FEE AS TO PARCEL 1 OF TRACT A AND TRACT B, AN EASEMENT AS TO PARCEL 2 OF TRACT A 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 2023-2024, a lien not yet due or payable. 2. The lien of supplemental taxes, if any, assessed pursuant to Chapter 3.5 commencing with Section 75 of the California Revenue and Taxation Code. The Following Matters Affect TRACT A: 3. RESERVATIONS OF PUBLIC RIGHTS AND EASEMENTS INCORPORATED BY LAW IN THE PATENTS FROM THE STATE OF CALIFORNIA, FOR PORTIONS OF SAID LAND TO JAMES MC FADDEN, RECORDED MARCH 1, 1876, IN BOOK 1, PAGE 608 OF PATENTS, RECORDS OF LOS ANGLES COUNTY, CALIFORNIA, INCLUDING RIGHTS AS TO COMMERCE, NAVIGATION AND FISHERIES. 4. An easement for EITHER OR BOTH POLE LINES, CONDUITS and incidental purposes in the document recorded March 3, 1949 as BOOK 1811, PAGE 11 of Official Records. Order Number: NHSC-7004947 (jd) Page Number: 4 First American Title 5. An easement for INGRESS, EGRESS, POLES, PIPE LINES and incidental purposes in the document recorded JANUARY 7, 1966 as BOOK 7802, PAGE 266 of Official Records. 6. Covenants, conditions, restrictions, easements, assessments, liens, charges, terms and provisions in the document recorded as BOOK 10571, PAGE 938 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, if any, indicating a preference, limitation, or discrimination based on race, color, religion, sex, gender, gender identity, gender expression, sexual orientation, familial status, marital status, disability, handicap, veteran or military status, genetic information, national origin, source of income as defined in subdivision (p) of Section 12955, or ancestry, to the extent that such covenants, conditions or restrictions violate applicable state or federal laws. 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. Document(s) declaring modifications thereof recorded as BOOK 11207, PAGE 167 AND BOOK 11616, PAGE 893, BOTH of Official Records. 7. A Non-exclusive easement for INGRESS AND EGRESS, FOR THE COLLECTION OF GARBAGE AND REFUSE and incidental purposes, recorded FEBRUARY 28, 1973 as BOOK 10574, PAGE 98 of Official Records. In Favor of: BAYSHORES COMMUNITY ASSOCIATION, A CALIFORNIA CORPORATION Affects: THE SOUTHEASTERLY 10 FEET OF SAID LAND 8. A non-exclusive easement for INGRESS, EGRESS AND PEDESTRIAN WALKWAY PURPOSES TOGETHER WITH THE RIGHT TO GRANT AND TRANSFER SAME and incidental purposes, recorded AUGUST 14, 1974 as BOOK 11220, PAGE 1008 of Official Records. In Favor of: THE IRVINE COMPANY, A WEST VIRGINIA CORPORATION Affects: THE SOUTHEASTERLY 20 FEET OF SAID LAND 9. Notice that no transfer of title shall be made until requirements for transfer of membership in the BAYSHORES COMMUNITY ASSOCIATION Homeowners Association have been complied with and any unpaid assessments and transfer fees have been paid. Recorded: OCTOBER 14, 1976 as BOOK 11923, PAGE 807 of Official Records. 10. Notice that no transfer of title shall be made until requirements for transfer of membership in the BAYSHORES COMMUNITY ASSOCIATION Homeowners Association have been complied with and any unpaid assessments and transfer fees have been paid. Recorded: APRIL 2, 1980 as BOOK 13560, PAGE 674 of Official Records. Order Number: NHSC-7004947 (jd) Page Number: 5 First American Title 11. A deed of trust to secure an original indebtedness of $3,045,000.00 recorded NOVEMBER 19, 2021 as INSTRUMENT NO. 2021000710450 OF OFFICIAL RECORDS. Dated: NOVEMBER 16, 2021 Trustor: BRIAN J. GRILEY AND ROCIO E. GRILEY, TRUSTEES OF THE BRIAN AND ROCIO GRILEY FAMILY TRUST OF 2008 Trustee: ANTIC TITLE INSURANCE COMPANY Beneficiary: MORTGAGE ELECTRONIC REGISTRATION SYSTEMS, INC. LENDER: MORGAN STANLEY PRIVATE BANK, NATIONAL ASSOCIATION 12. Any easements and/or servitudes affecting easement parcel(s) 2 herein described. 13. Water rights, claims or title to water, whether or not shown by the Public Records. The Following Matters Affect TRACT B: 14. A perpetual avigation easement in and through the air above the herein described and other land, as conveyed to the County of Orange by the Irvine Company, by deed recorded March 17, 1964 in book 6965, page 721 of Official Records, and the terms and conditions as set forth in said deed to which record reference is hereby made for all particulars. 15. Covenants, conditions, restrictions, easements, assessments, liens, charges, terms and provisions in the document recorded as BOOK 10571, PAGE 938 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, if any, indicating a preference, limitation, or discrimination based on race, color, religion, sex, gender, gender identity, gender expression, sexual orientation, familial status, marital status, disability, handicap, veteran or military status, genetic information, national origin, source of income as defined in subdivision (p) of Section 12955, or ancestry, to the extent that such covenants, conditions or restrictions violate applicable state or federal laws. 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. Document(s) declaring modifications thereof recorded as BOOK 11207, PAGE 167 of Official Records. 16. An easement for INGRESS, EGRESS, AND PEDESTRIAN WALKWAY and incidental purposes in the document recorded as BOOK 11220, PAGE 1008 of Official Records. 17. Notice that no transfer of title shall be made until requirements for transfer of membership in the BAYSHORE COMMUNITY Homeowners Association have been complied with and any unpaid assessments and transfer fees have been paid. Recorded: APRIL 02, 1980 as BOOK 13560, PAGE 674 of Official Records. Order Number: NHSC-7004947 (jd) Page Number: 6 First American Title 18. A deed of trust to secure an original indebtedness of $2,793,750.00 recorded SEPTEMBER 20, 2021 as INSTRUMENT NO. 2021000582016 OF OFFICIAL RECORDS. Dated: SEPTEMBER 13, 2021 Trustor: BRIAN J. GRILEY AND ROCIO E. GRILEY, TRUSTEES OF THE BRIAN AND ROCIO GRILEY FAMILY TRUST OF 2008 CREATED ON MARCH 18, 2008 Trustee: WESTCOR LAND TITLE INSURANCE COMPANY Beneficiary: MORTGAGE ELECTRONIC REGISTRATION SYSTEMS, INC. LENDER: MORGAN STANLEY PRIVATE BANK, NATIONAL ASSOCIATION The Following Matters Affect TRACT A AND B: 19. An easement shown or dedicated on the Map as referred to in the legal description For: ALLEY and incidental purposes. 20. The terms, provisions and easement(s) contained in the document entitled "GRANT OF PUBLIC UTILITY EASEMENT" recorded JULY 07, 1999 as INSTRUMENT NO. 19990503713 of Official Records. 21. The terms and provisions contained in the document entitled "AGREEMENT" recorded FEBRUARY 13, 2013 as INSTRUMENT NO. 2013000091215 of Official Records. 22. Rights of the public in and to that portion of the Land lying within any Road, Street, Alley or Highway. Prior to the issuance of any policy of title insurance, the Company will require: 23. With respect to the trust referred to in the vesting: a. A certification pursuant to Section 18100.5 of the California Probate Code in a form satisfactory to the Company. b. 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. c. Other requirements which the Company may impose following its review of the material required herein and other information which the Company may require. Order Number: NHSC-7004947 (jd) Page Number: 7 First American Title INFORMATIONAL NOTES Note: The policy to be issued may contain an arbitration clause. When the Amount of Insurance is less than the certain dollar amount set forth in any applicable 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. If you desire to review the terms of the policy, including any arbitration clause that may be included, contact the office that issued this Commitment or Report to obtain a sample of the policy jacket for the policy that is to be issued in connection with your transaction. 1. General and special taxes and assessments for the fiscal year 2022-2023. First Installment: $19,736.62, PAID Penalty: $0.00 Second Installment: $19,736.62, PAID Penalty: $0.00 Tax Rate Area: 07-001 A. P. No.: 049-183-27 (Affects TRACT B) 2. General and special taxes and assessments for the fiscal year 2022-2023. First Installment: $21,357.43, PAID Penalty: $0.00 Second Installment: $21,357.43, PAID Penalty: $0.00 Tax Rate Area: 07-001 A. P. No.: 049-183-28 (Affects TRACT A) 3. According to the latest available equalized assessment roll in the office of the county tax assessor, there is located on the land a(n) SINGLE FAMILY RESIDENCE known as 2596 CRESTVIEW DRIVE, NEWPORT BEACH, CALIFORNIA. (Affects TRACT B) 4. According to the latest available equalized assessment roll in the office of the county tax assessor, there is located on the land a(n) SINGLE FAMILY RESIDENCE known as 2592 ARBOR DRIVE, NEWPORT BEACH, CALIFORNIA. (Affects TRACT A) 5. 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: Order Number: NHSC-7004947 (jd) Page Number: 8 First American Title A document recorded SEPTEMBER 30, 2021 as INSTRUMENT NO. 2021000603335 of Official Records. From: THERESE K. POITEVIN, AN UNMARRIED WOMAN To: BRIAN GRILEY AND ROCIO GRILEY, TRUSTEES OF THE BRIAN AND ROCIO GRILEY FAMILY TRUST OF 2008 (Affects TRACT A) A document recorded NOVEMBER 19, 2021 as INSTRUMENT NO. 2021000710449 of Official Records. From: BRIAN J. GRILEY AND ROCIO E. GRILEY, TRUSTEES OF THE BRIAN AND ROCIO GRILEY FAMILY TRUST OF 2008 WHO TOOK TITLE AS BRIAN GRILEY AND ROCIO GRILEY, TRUSTEES OF THE BRIAN AND ROCIO GRILEY FAMILY TRUST OF 2008 To: BRIAN J. GRILEY AND ROCIO E. GRILEY, TRUSTEES OF THE BRIAN AND ROCIO GRILEY FAMILY TRUST OF 2008 (Affects TRACT A) A document recorded AUGUST 11, 2021 as INSTRUMENT NO. 2021000508303 of Official Records. From: EVA A. JOHNSTON, TRUSTEE OF THE EVA J. JOHNSTON TRUST DATED APRIL 14, 2014 To: BRIAN J. GRILEY AND ROCIO E. GRILEY, TRUSTEES OF THE BRIAN AND ROCIO GRILEY FAMILY TRUST OF 2008 CREATED ON MARCH 18, 2008 (Affects TRACT B) The map attached, if any, may or may not be a survey of the land depicted hereon. First American 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. Order Number: NHSC-7004947 (jd) Page Number: 9 First American Title LEGAL DESCRIPTION Real property in the City of Newport Beach, County of Orange, State of California, described as follows: TRACT A: (APN: 049-183-28) PARCEL 1: LOT 57 OF TRACT NO. 1102 UNIT TWO OF BAY SHORES, IN THE CITY OF NEWPORT BEACH, COUNTY OF ORANGE, STATE OF CALIFORNIA, AS SHOWN ON A MAP RECORDED IN BOOK 35, PAGE 36 OF MISCELLANEOUS MAPS, RECORDS OF ORANGE COUNTY, CALIFORNIA. EXCEPTING THEREFROM ALL OIL, OIL RIGHTS, MINERALS, MINERAL RIGHTS, NATURAL GAS RIGHTS, AND OTHER HYDROCARBONS BY WHATSOEVER NAME KNOWN, GEOTHERMAL STEAM AND OTHER GEOTHERMAL RESOURCES AS DEFINED IN CALIFORNIA PUBLIC RESOURCES CODE SECTION 6903 ET SEQ., THAT MAY BE WITHIN OR UNDER THE PARCELS OF LAND HEREINABOVE DESCRIBED, TOGETHER WITH THE PERPETUAL RIGHT OF DRILLING, MINING, EXPLORING, AND OPERATING THEREFOR AND STORING IN AND REMOVING THE SAME FROM SAID LAND OR ANY OTHER LAND, INCLUDING THE RIGHT TO WHIPSTOCK OR DIRECTIONALLY DRILL AND MINE FROM LANDS OTHER THAN THOSE HEREINABOVE DESCRIBED, OIL, OR GAS WELLS, TUNNELS AND SHAFTS INTO, THROUGH OR ACROSS THE SUBSURFACE OF THE LAND HEREINABOVE DESCRIBED, AND TO BOTTOM SUCH WHIPSTOCKED OR DIRECTIONALLY DRILLED WELLS, TUNNELS AND SHAFTS UNDER AND BENEATH OR BEYOND THE EXTERIOR LIMITS THEREOF, AND TO REDRILL, RETUNNEL, EQUIP, MAINTAIN, REPAIR, DEEPEN AND OPERATE ANY SUCH WELLS OR MINES WITHOUT, HOWEVER, THE RIGHT TO DRILL, MINE, STORE, EXPLORE AND OPERATE THROUGH THE SURFACE OR THE UPPER 500 FEET OF THE SUBSURFACE OF THE LAND HEREINABOVE DESCRIBED. ALSO EXCEPTING THEREFROM ANY AND ALL WATER RIGHTS OR INTEREST IN WATER RIGHTS AND ANY, AND ALL GEOTHERMAL RIGHTS OR INTERESTS IN GEOTHERMAL RIGHTS, NO MATTER HOW ACQUIRED BY THE GRANTOR OR THE IRVINE COMPANY, AND OWNED OR USED BY THE GRANTOR OR THE IRVINE COMPANY, IN CONNECTION WITH OR WITH RESPECT TO THE PROPERTY CONVEYED HEREBY, WHETHER SUCH WATER RIGHTS SHALL BE RIPARIAN, OVERLYING, APPROPRIATIVE, PERCOLATING, PRESCRIPTIVE OR CONTRACTUAL, TOGETHER WITH FULL RIGHT AND POWER, AMONG OTHERS, TO TRANSFER OR ASSIGN TO OTHERS OR TO USE OR UTILIZE ON ANY OTHER PROPERTY OWNED OR LEASED BY THE GRANTOR; PROVIDED, HOWEVER THAT THE EXCEPTION AND RESERVATION MADE HEREIN SHALL NOT RESERVE TO OR FOR THE BENEFIT OR GRANTOR OR THE IRVINE COMPANY ANY RIGHT TO ENTER UPON THE SURFACE OF THE PROPERTY DESCRIBED HEREIN IN THE EXERCISE OF SUCH RIGHTS. PARCEL 2: A NON-EXCLUSIVE APPURTENANT EASEMENT FOR INGRESS AND EGRESS OVER PRIVATE STREETS AND OTHER AREAS DESCRIBED IN THAT CERTAIN EASEMENT DEED TO THE IRVINE COMPANY, A WEST VIRGINIA CORPORATION, RECORDED AUGUST 14, 1974 IN BOOK 11220, PAGE 1008 OF OFFICIAL RECORDS OF SAID COUNTY. TRACT B: (APN: 049-183-27) LOT 58 OF TRACT NO. 1102 UNIT TWO OF BAY SHORES, IN THE CITY OF NEWPORT BEACH, COUNTY OF ORANGE, STATE OF CALIFORNIA, AS SHOWN ON A MAP RECORDED IN BOOK 35, PAGE 36 OF MISCELLANEOUS MAPS, RECORDS OF ORANGE COUNTY, CALIFORNIA. Order Number: NHSC-7004947 (jd) Page Number: 10 First American Title Order Number: NHSC-7004947 (jd) Page Number: 11 First American Title NOTICE Section 12413.1 of the California Insurance Code, effective January 1, 1990, requires that any title insurance company, underwritten title company, or controlled escrow company handling funds in an escrow or sub- escrow capacity, wait a specified number of days after depositing funds, before recording any documents in connection with the transaction or disbursing funds. This statute allows for funds deposited by wire transfer to be disbursed the same day as deposit. In the case of cashier's checks or certified checks, funds may be disbursed the next day after deposit. In order to avoid unnecessary delays of three to seven days, or more, please use wire transfer, cashier's checks, or certified checks whenever possible. Order Number: NHSC-7004947 (jd) Page Number: 12 First American Title EXHIBIT A LIST OF PRINTED EXCEPTIONS AND EXCLUSIONS (BY POLICY TYPE) CLTA/ALTA HOMEOWNER'S POLICY OF TITLE INSURANCE [(07-01-2021) v. 01.00] EXCLUSIONS FROM COVERAGE The following matters are excluded from the coverage of this policy and We 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) that restricts, regulates, prohibits, or relates to: i. the occupancy, use, or enjoyment of the Land; ii. the character, dimensions, or location of any improvement on the Land; iii. the subdivision of land; or iv. environmental remediation or protection. b. any governmental forfeiture, police, or regulatory, or national security power. c. the effect of a violation or enforcement of any matter excluded under Exclusion 1.a. or 1.b. Exclusion 1 does not modify or limit the coverage provided under Covered Risk 8.a., 14, 15, 16, 18, 19, 20, 23, or 27. 2. Any power to take the Land by condemnation. Exclusion 2 does not modify or limit the coverage provided under Covered Risk 17. 3. Any defect, lien, encumbrance, adverse claim, or other matter: a. created, suffered, assumed, or agreed to by You; b. not Known to Us, not recorded in the Public Records at the Date of Policy, but Known to You and not disclosed in writing to Us by You prior to the date You became an Insured under this policy; c. resulting in no loss or damage to You; d. attaching or created subsequent to the Date of Policy (Exclusion 3.d. does not modify or limit the coverage provided under Covered Risk 5, 8.f., 25, 26, 27, 28, or 32); or e. resulting in loss or damage that would not have been sustained if You paid consideration sufficient to qualify You as a bona fide purchaser of the Title at the Date of Policy. 4. Lack of a right: a. to any land outside the area specifically described and referred to in Item 3 of Schedule A; and b. in any street, road, avenue, alley, lane, right-of-way, body of water, or waterway that abut the Land. Exclusion 4 does not modify or limit the coverage provided under Covered Risk 11 or 21. 5. The failure of Your existing structures, or any portion of Your existing structures, to have been constructed before, on, or after the Date of Policy in accordance with applicable building codes. Exclusion 5 does not modify or limit the coverage provided under Covered Risk 14 or 15. 6. Any claim, by reason of the operation of federal bankruptcy, state insolvency, or similar creditors’ rights law, that the transfer of the Title to You is a: a. fraudulent conveyance or fraudulent transfer; b. voidable transfer under the Uniform Voidable Transactions Act; or c. preferential transfer: i. to the extent the instrument of transfer vesting the Title as shown in Schedule A is not a transfer made as a contemporaneous exchange for new value; or ii. for any other reason not stated in Covered Risk 30. 7. Contamination, explosion, fire, flooding, vibration, fracturing, earthquake, or subsidence. 8. Negligence by a person or an entity exercising a right to extract or develop oil, gas, minerals, groundwater, or any other subsurface substance. 9. Any lien on Your Title for real estate taxes or assessments imposed or collected by a governmental authority that becomes due and payable after the Date of Policy. Exclusion 9 does not modify or limit the coverage provided under Covered Risk 8.a. or 27. 10. Any discrepancy in the quantity of the area, square footage, or acreage of the Land or of any improvement to the Land. LIMITATIONS ON COVERED RISKS Your insurance for the following Covered Risks is limited on the Owner’s Coverage Statement as follows: For Covered Risk 16, 18, 19, and 21 Your Deductible Amount and Our Maximum Dollar Limit of Liability shown in Schedule A. The deductible amounts and maximum dollar limits shown on Schedule A are as follows: Your Deductible Amount Our Maximum Dollar Limit of Liability Covered Risk 16: 1% of Policy Amount Shown in Schedule A or $2,500 $10,000 (whichever is less) Covered Risk 18: 1% of Policy Amount Shown in Schedule A or $5,000 $25,000 (whichever is less) Covered Risk 19: 1% of Policy Amount Shown on Schedule A or $5,000 $25,000 (whichever is less) Covered Risk 21: 1% of Policy Amount Shown on Schedule A or $2,500 $5,000 (whichever is less) Order Number: NHSC-7004947 (jd) Page Number: 13 First American Title ALTA OWNER'S POLICY [(07-01-2021) V. 01.00] CLTA STANDARD COVERAGE OWNER'S POLICY [(02-04-22) V. 01.00] EXCLUSIONS FROM COVERAGE The following matters are 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) that restricts, regulates, prohibits, or relates to: i. the occupancy, use, or enjoyment of the Land; ii. the character, dimensions, or location of any improvement on the Land; iii. the subdivision of land; or iv. environmental remediation or protection. b. any governmental forfeiture, police, regulatory, or national security power. c. the effect of a violation or enforcement of any matter excluded under Exclusion 1.a. or 1.b. Exclusion 1 does not modify or limit the coverage provided under Covered Risk 5 or 6. 2. Any power of eminent domain. Exclusion 2 does not modify or limit the coverage provided under Covered Risk 7. 3. Any defect, lien, encumbrance, adverse claim, or other matter: a. created, suffered, assumed, or agreed to by the Insured Claimant; b. not Known to the Company, not recorded in the Public Records at the 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 the Date of Policy (Exclusion 3.d. does not modify or limit the coverage provided under Covered Risk 9 or 10); or e. resulting in loss or damage that would not have been sustained if consideration sufficient to qualify the Insured named in Schedule A as a bona fide purchaser had been given for the Title at the Date of Policy. 4. Any claim, by reason of the operation of federal bankruptcy, state insolvency, or similar creditors’ rights law, that the transaction vesting the Title as shown in Schedule A is a: a. fraudulent conveyance or fraudulent transfer; b. voidable transfer under the Uniform Voidable Transactions Act; or c. preferential transfer: i. to the extent the instrument of transfer vesting the Title as shown in Schedule A is not a transfer made as a contemporaneous exchange for new value; or ii. for any other reason not stated in Covered Risk 9.b. 5. Any claim of a PACA-PSA Trust. Exclusion 5 does not modify or limit the coverage provided under Covered Risk 8. 6. Any lien on the Title for real estate taxes or assessments imposed or collected by a governmental authority that becomes due and payable after the Date of Policy. Exclusion 6 does not modify or limit the coverage provided under Covered Risk 2.b. 7. Any discrepancy in the quantity of the area, square footage, or acreage of the Land or of any improvement to the Land. NOTE: The 2021 ALTA Owner’s Policy may be issued to afford either Standard Coverage or Extended Coverage. In addition to variable exceptions such as taxes, easements, CC&R’s, etc., the Exceptions from Coverage in a Standard Coverage policy will also include the Western Regional Standard Coverage Exceptions listed below as numbers 1 through 7. The 2021 CLTA Standard Coverage Owner’s Policy will include the Western Regional Standard Coverage Exceptions listed below as numbers 1 through 7. EXCEPTIONS FROM COVERAGE Some historical land records contain Discriminatory Covenants that are illegal and unenforceable by law. This policy treats any Discriminatory Covenant in a document referenced in Schedule B as if each Discriminatory Covenant is redacted, repudiated, removed, and not republished or recirculated. Only the remaining provisions of the document are excepted from coverage. This policy does not insure against loss or damage and the Company will not pay costs, attorneys’ fees, or expenses resulting from the terms and conditions of any lease or easement identified in Schedule A, and the following matters: 1. (a) Taxes or assessments that are not shown as existing liens by the records of any taxing authority that levies taxes or assessments on real property or by the Public Records; (b) proceedings by a public agency that may result in taxes or assessments, or notices of such proceedings, whether or not shown by the records of such agency or by the Public Records. 2. Any facts, rights, interests, or claims that are not shown by the Public Records but that could be ascertained by an inspection of the Land or that may be asserted by persons in possession of the Land. 3. Easements, liens or encumbrances, or claims thereof, not shown by the Public Records. 4. Any encroachment, encumbrance, violation, variation, or adverse circumstance affecting the Title that would be disclosed by an accurate and complete land survey of the Land and not shown by the Public Records. 5. (a) Unpatented mining claims; (b) reservations or exceptions in patents or in Acts authorizing the issuance thereof; (c) water rights, claims or title to water, whether or not the matters excepted under (a), (b), or (c) are shown by the Public Records. 6. Any lien or right to a lien for services, labor or material unless such lien is shown by the Public Records at Date of Policy. 7. Any claim to (a) ownership of or rights to minerals and similar substances, including but not limited to ores, metals, coal, lignite, oil, gas, Order Number: NHSC-7004947 (jd) Page Number: 14 First American Title uranium, clay, rock, sand, and gravel located in, on, or under the Land or produced from the Land, whether such ownership or rights arise by lease, grant, exception, conveyance, reservation, or otherwise; and (b) any rights, privileges, immunities, rights of way, and easements associated therewith or appurtenant thereto, whether or not the interests or rights excepted in (a) or (b) appear in the Public Records or are shown in Schedule B. 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 Covered Risk 9 and 10); or (e) resulting in loss or damage that would not have been sustained if the Insured Claimant had paid value for the Title. 4. Any claim, by reason of the operation of federal bankruptcy, state insolvency, or similar creditors’ rights laws, that the transaction vesting the Title as shown in Schedule A, is (a) a fraudulent conveyance or fraudulent transfer; or (b) a preferential transfer for any reason not stated in Covered Risk 9 of this policy. 5. Any lien on the Title for real estate taxes or assessments imposed by governmental authority and created or attaching between Date of Policy and the date of recording of the deed or other instrument of transfer in the Public Records that vests Title as shown in Schedule A. NOTE: The 2006 ALTA Owner’s Policy may be issued to afford either Standard Coverage or Extended Coverage. In addition to variable exceptions such as taxes, easements, CC&R’s, etc., the Exceptions from Coverage in a Standard Coverage policy will also include the Western Regional Standard Coverage Exceptions listed below as numbers 1 through 7. 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: 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: 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 in the Public Records but that could be ascertained by an inspection of the Land or that may be asserted by persons in possession of the Land. 3. Easements, liens or encumbrances, or claims thereof, not shown by the Public Records. 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 that are not shown by the Public Records. 5. (a) Unpatented mining claims; (b) reservations or exceptions in patents or in Acts authorizing the issuance thereof; (c) water rights, claims or title to water, whether or not the matters excepted under (a), (b), or (c) are shown by the Public Records. 6. Any lien or right to a lien for services, labor or material unless such lien is shown by the Public Records at Date of Policy. 7. Any claim to (a) ownership of or rights to minerals and similar substances, including but not limited to ores, metals, coal, lignite, oil, gas, uranium, clay, rock, sand, and gravel located in, on, or under the Land or produced from the Land, whether such ownership or rights arise by lease, grant, exception, conveyance, reservation, or otherwise; and (b) any rights, privileges, immunities, rights of way, and easements associated therewith or appurtenant thereto, whether or not the interests or rights excepted in (a) or (b) appear in the Public Records or are shown in Schedule B.