HomeMy WebLinkAboutPA2022-0200_20220909_Title ReportCLTA Preliminary Report Form Order Number: NHSC-6886466 (jd)
(Rev. 11/06) Page Number: 1
First American Title
First American Title Company
1250 Corona Pointe Court, Suite 200
Corona, CA 92879
Mark Rosene
Thomas James Homes
26880 Aliso Viejo Parkway, Suite 100
Aliso Viejo, CA 92656
Customer Reference: PM t/f - APN 459-073-18
Order Number: NHSC-6886466 (jd)
Title Officer: Jesus Duran
Phone: (951)256-5820
Fax No.: (714)481-9208
E-Mail:jduran@firstam.com
Buyer:
. Property: APN 459-073-18, (Corona Del Mar)
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
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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.
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Dated as of August 03, 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:
LA21G, LLC, A CALIFORNIA LIMITED LIABILITY COMPANY
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.The lien of supplemental taxes, if any, assessed pursuant to Chapter 3.5 commencing with Section 75
of the California Revenue and Taxation Code.
3.An easement for STREETS TO BUILD, MAINTAIN RAILROADS AND OPERATE, PUBLIC UTILITIES and
incidental purposes in the document recorded November 14, 1902 in Book 80 of Deeds, Page 198.
4.An easement for RIVER CHANNEL, STREET and incidental purposes in the document recorded
December 11, 1917 in Book 316 of Deeds, Page 237.
5.An easement for RIGHT OF WAYS TO MAINTAIN AND OPERATE PIPE LINES and incidental purposes
in the document recorded November 8, 1945 as BOOK 1363, PAGE 210 of Official Records.
6.An easement for POLE LINES and incidental purposes in the document recorded June 2, 1949
as BOOK 1852, PAGE 137 of Official Records.
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7. An easement for PUBLIC UTILITIES and incidental purposes in the document recorded November 27,
1961 as BOOK 5924, PAGE 210 of Official Records.
8. The terms and provisions contained in the document entitled "ANNEXATION AND DEVELOPMENT
AGREEMENT" recorded November 8, 2001 as INSTRUMENT NO. 2001-800494 of Official Records.
9. A deed of trust to secure an original indebtedness of $2,040,000.00 recorded September 07, 2021 as
INSTRUMENT NO. 2021000557327 OF OFFICIAL RECORDS.
Dated: September 02, 2021
Trustor: LA21G, LLC, A CALIFORNIA LIMITED LIABILITY COMPANY
Trustee: LAWYERS TITLE COMPANY
Beneficiary: GOLDMAN SACHS BANK USA, A NEW YORK CHARTERED
BANK
A document entitled "ASSIGNMENT OF LEASES AND RENTS" recorded September 07, 2021 as
INSTRUMENT NO. 2021000557328 of Official Records, as additional security for the payment of the
indebtedness secured by the deed of trust recorded September 07, 2021 as INSTRUMENT NO.
2021000557327 of Official Records.
The terms and provisions contained in the document entitled ADDENDUM TO DEED OF TRUST AND
ASSIGNMENT OF LEASES AND RENTS recorded September 07, 2021 as INSTRUMENT NO.
2021000557329 of Official Records.
The terms and provisions contained in the document entitled "CROSS-COLLATERALIZATION
AGREEMENT AND OMNIBUS AMENDMENT TO SECURITY INSTRUMENTS" recorded January 12, 2022
as INSTRUMENT NO. 2022000014381 of Official Records.
The terms and provisions contained in the document entitled "CROSS-COLLATERALIZATION
AGREEMENT AND OMNIBUS AMENDMENT TO SECURITY INSTRUMENTS" recorded March 14, 2022
as INSTRUMENT NO. 2022000098107 of Official Records.
The effect of a document entitled "RELEASE OF ASSIGNMENT OF LEASES AND RENTS", recorded
May 20, 2022 as INSTRUMENT NO. 2022000188570 of Official Records.
The effect of a document entitled "SUBSTITUTION OF TRUSTEE AND FULL RECONVEYANCE",
recorded May 20, 2022 as INSTRUMENT NO. 2022000188569 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.
10. A deed of trust to secure an original indebtedness of $3,471,500.00 recorded May 04, 2022 as
INSTRUMENT NO. 2022000168821 OF OFFICIAL RECORDS.
Dated: May 01, 2022
Trustor: LA21G, LLC, A CALIFORNIA LIMITED LIABILITY COMPANY
Trustee: LAWYERS TITLE COMPANY
Beneficiary: GENESIS CAPITAL, LLC, A DELAWARE LIMITED LIABILITY
COMPANY
The above deed of trust states that it is a construction deed of trust.
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a. If this deed of trust is to be eliminated in the policy or policies contemplated by this
report/commitment, the company will require the following for review prior to the recordation of any
documents or the issuance of any policy of title insurance:
i. Original note and deed of trust.
ii. Payoff demand statement signed by all present beneficiaries.
iii. Request for reconveyance or substitution of trustee and full reconveyance must be
signed by all present beneficiaries and must be notarized by a First American approved
notary.
b. If the payoff demand statement or the request for reconveyance is to be signed by a servicer, we will
also require a full copy of the loan servicing agreement executed by all present beneficiaries.
c. If any of the beneficial interest is presently held by trustees under a trust agreement, we will require
a certification pursuant to Section 18100.5 of the California Probate Code in a form satisfactory to the
Company.
A document recorded May 04, 2022 as INSTRUMENT NO. 2022000168822 of Official Records
provides that the deed of trust or the obligation secured thereby has been modified.
11. Any statutory lien for labor or materials arising by reason of a work of improvement, as disclosed by
a document recorded May 04, 2022 as INSTRUMENT NO. 2022000168821 of Official Records.
12. A financing statement recorded May 04, 2022 as INSTRUMENT NO. 2022000168823 OF OFFICIAL
RECORDS.
Debtor: LA21G, LLC, A CALIFORNIA LIMITED LIABILITY COMPANY
Secured party: GENESIS CAPITAL, LLC, A DELAWARE LIMITED LIABILITY
COMPANY
13. Rights of the public in and to that portion of the Land lying within any Road, Street, Alley or Highway.
14. Water rights, claims or title to water, whether or not shown by the Public Records.
Prior to the issuance of any policy of title insurance, the Company will require:
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15.With respect to LA21G, LLC, a California limited liability company:
a. A copy of its operating agreement and any amendments thereto;
b. If it is a California limited liability company, that 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) be recorded in the public records;
c. If it is a foreign limited liability company, that a certified copy of its application for registration
(LLC-5) be recorded in the public records;
d. 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, that such document or instrument 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 document 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.
e. Other requirements which the Company may impose following its review of the material required
herein and other information which the Company may require
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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 2021-2022.
First Installment: $877.23, PAID
Penalty: $0.00
Second Installment: $877.23, PAID
Penalty: $0.00
Tax Rate Area: 07-001
A. P. No.: 459-073-18
2. 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 717 POINSETTIA
AVENUE, NEWPORT BEACH, CALIFORNIA.
3. 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:
A document recorded September 07, 2021 as INSTRUMENT NO. 2021000557326 OF OFFICIAL
RECORDS
From: MICHAEL HANXLEDEN, TRUSTEE OF THE HOPPER TRUST, DATED FEBRUARY 28, 2002
To: LA21G, LLC, A CALIFORNIA LIMITED LIABILITY COMPANY
4. It appears that a work of improvement is in progress or recently completed on the land. The
Company will require various documents and information, including but not limited to a completed
mechanics' lien risk analysis, construction contract(s), lien waivers, loan agreement, disbursement
information, executed indemnity agreement and current financial information from proposed
indemnitors, in order to determine whether mechanics' lien insurance can be issued. Other
requirements may be made following the review of such documents and information.
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.
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First American Title
First American Title Company
1250 Corona Pointe Court, Suite 200
Corona, CA 92879 (951)256-5880
Fax - (909)476-2401
WIRE INSTRUCTIONS
for
First American Title Company, Demand/Draft Sub-Escrow Deposits
Riverside County, California
First American Trust, FSB
5 First American Way
Santa Ana, CA 92707
Banking Services: (877) 600-9473
ABA 122241255
Credit to First American Title Company
Account No. 3097840000
Reference Title Order Number 6886466 and Title Officer Jesus Duran
Please wire the day before recording.
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LEGAL DESCRIPTION
Real property in the City of Newport Beach, County of Orange, State of California, described as follows:
LOT 17, BLOCK 742 OF CORONA DEL MAR, IN THE CITY OF NEWPORT BEACH, COUNTY OF ORANGE,
STATE OF CALIFORNIA, AS SHOWN ON A MAP RECORDED IN BOOK 3, PAGES 41 AND 42 OF
MISCELLANEOUS MAPS, RECORDS OF SAID ORANGE COUNTY, CALIFORNIA.
APN: 459-073-18
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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.
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EXHIBIT A
LIST OF PRINTED EXCEPTIONS AND EXCLUSIONS (BY POLICY TYPE)
CLTA STANDARD COVERAGE POLICY – 1990
EXCLUSIONS FROM COVERAGE
The following matters are expressly excluded from the coverage of this policy and the Company will not pay loss or damage, costs, attorneys' fees or expenses which arise by reason of:
1. (a) Any law, ordinance or governmental regulation (including but not limited to building or zoning laws, ordinances, or regulations)
restricting, regulating, prohibiting or relating (i) the occupancy, use, or enjoyment of the land; (ii) the character, dimensions or location of any improvement now or hereafter erected on the land; (iii) a separation in ownership or a change in the
dimensions or area of the land or any parcel of which the land is or was a part; or (iv) environmental protection, or the effect
of any violation of these laws, ordinances or governmental regulations, except to the extent that a notice of the enforcement thereof or a notice of a defect, lien, or encumbrance resulting from a violation or alleged violation affecting the land has been
recorded in the public records at Date of Policy.
(b) Any governmental police power not excluded by (a) above, except to the extent that a notice of the exercise thereof or notice of a defect, lien or encumbrance resulting from a violation or alleged violation affecting the land has been recorded in the
public records at Date of Policy.
2. Rights of eminent domain unless notice of the exercise thereof has been recorded in the public records at Date of Policy, but not excluding from coverage any taking which has occurred prior to Date of Policy which would be binding on the rights of a purchaser
for value without knowledge.
3. Defects, liens, encumbrances, adverse claims or other matters: (a) whether or not recorded in the public records at Date of Policy, but created, suffered, assumed or agreed to by the insured
claimant;
(b) not known to the Company, not recorded in the public records at Date of Policy, but known to the insured claimant and not disclosed in writing to the Company by the insured claimant prior to the date the insured claimant became an insured under
this policy;
(c) resulting in no loss or damage to the insured claimant;
(d) attaching or created subsequent to Date of Policy; or
(e) resulting in loss or damage which would not have been sustained if the insured claimant had paid value for the insured mortgage or for the estate or interest insured by this policy.
4. Unenforceability of the lien of the insured mortgage because of the inability or failure of the insured at Date of Policy, or the inability or failure of any subsequent owner of the indebtedness, to comply with the applicable doing business laws of the state in which the
land is situated.
5. Invalidity or unenforceability of the lien of the insured mortgage, or claim thereof, which arises out of the transaction evidenced by the insured mortgage and is based upon usury or any consumer credit protection or truth in lending law.
6. Any claim, which arises out of the transaction vesting in the insured the estate of interest insured by this policy or the transaction
creating the interest of the insured lender, by reason of the operation of federal bankruptcy, state insolvency or similar creditors' rights laws.
EXCEPTIONS FROM COVERAGE - SCHEDULE B, PART I
This policy does not insure against loss or damage (and the Company will not pay costs, attorneys' fees or expenses) which arise by
reason of: 1. Taxes or assessments which are not shown as existing liens by the records of any taxing authority that levies taxes or assessments
on real property or by the public records.
Proceedings by a public agency which may result in taxes or assessments, or notices of such proceedings, whether or not shown by the records of such agency or by the public, records.
2. Any facts, rights, interests, or claims which are not shown by the public records but which could be ascertained by an inspection of
the land or which may be asserted by persons in possession thereof. 3. Easements, liens or encumbrances, or claims thereof, not shown by the public records.
4. Discrepancies, conflicts in boundary lines, shortage in area, encroachments, or any other facts which a correct survey would
disclose, and which are not shown by the public records.
5. (a) Unpatented mining claims; (b) reservations or exceptions in patents or in Acts authorizing the issuance thereof; (c) water rights, claims or title to water, whether or not the matters excepted under (a), (b) or (c) are shown by the public records.
6. Any lien or right to a lien for services, labor or material unless such lien is shown by the public records at Date of Policy.
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CLTA/ALTA HOMEOWNER'S POLICY OF TITLE INSURANCE (12-02-13) 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;b. zoning;
c. land use;
d. improvements on the Land;e. land division; and
f. environmental protection.This Exclusion does not limit the coverage described in Covered Risk 8.a., 14, 15, 16, 18, 19, 20, 23 or 27.
2.The failure of Your existing structures, or any part of them, to be constructed in accordance with applicable building codes. This Exclusion
does not limit the coverage described in Covered Risk 14 or 15.3.The right to take the Land by condemning it. This Exclusion does not limit the coverage described in Covered Risk 17.
4.Risks:
a. that 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; andb. 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, stateinsolvency, or similar creditors' rights laws.
8.Contamination, explosion, fire, flooding, vibration, fracturing, earthquake, or subsidence.
9.Negligence by a person or an Entity exercising a right to extract or develop minerals, water, or any other substances.
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 in Schedule A or $5,000 $25,000 (whichever is less)
Covered Risk 21: 1% of Policy Amount Shown in Schedule A or $2,500 $5,000 (whichever is less)
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;
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(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
[Except as provided in Schedule B - Part II,[ t[or T]his policy does not insure against loss or damage, and the Company will not pay costs,
attorneys' fees or expenses, that arise by reason of: [PART I
[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 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.
PART II
In addition to the matters set forth in Part I of this Schedule, the Title is subject to the following matters, and the Company insures against loss
or damage sustained in the event that they are not subordinate to the lien of the Insured Mortgage:]
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
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(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 or
10); or (e) resulting in loss or damage that would not have been sustained if the Insured Claimant had paid value for the Title. 4. Any claim, by reason of the operation of federal bankruptcy, state insolvency, or similar creditors' rights laws, that the transaction vesting the
Title as shown in Schedule A, is (a) a fraudulent conveyance or fraudulent transfer, or (b) a preferential transfer for any reason not stated in Covered Risk 9 of this policy.
5. Any lien on the Title for real estate taxes or assessments imposed by governmental authority and created or attaching between Date of Policy
and the date of recording of the deed or other instrument of transfer in the Public Records that vests Title as shown in Schedule A.
The above policy form may be issued to afford either Standard Coverage or Extended Coverage. In addition to the above Exclusions from Coverage, the Exceptions from Coverage in a Standard Coverage policy will also include the following Exceptions from Coverage:
EXCEPTIONS FROM COVERAGE
This policy does not insure against loss or damage, and the Company will not pay costs, attorneys' fees or expenses, that arise by reason of: [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 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. [Variable exceptions such as taxes, easements, CC&R's, etc. shown here.]
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; or
(iv) environmental protection;
or the effect of any violation of these laws, ordinances, or governmental regulations. This Exclusion 1(a) does not modify or limit the
coverage provided under Covered Risk 5, 6, 13(c), 13(d), 14 or 16. (b) Any governmental police power. This Exclusion 1(b) does not modify or limit the coverage provided under Covered Risk 5, 6, 13(c), 13(d),
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First American Title
14 or 16.
2.Rights of eminent domain. This Exclusion does not modify or limit the coverage provided under Covered Risk 7 or 8.
3.Defects, liens, encumbrances, adverse claims, or other matters
(a) created, suffered, assumed, or agreed to by the Insured Claimant;
(b) not Known to the Company, not recorded in the Public Records at Date of Policy, but Known to the Insured Claimant and not disclosed in
writing to the Company by the Insured Claimant prior to the date the Insured Claimant became an Insured under this policy;
(c) resulting in no loss or damage to the Insured Claimant;(d) attaching or created subsequent to Date of Policy (however, this does not modify or limit the coverage provided under Covered Risk 11,
16, 17, 18, 19, 20, 21, 22, 23, 24, 27 or 28); or(e) resulting in loss or damage that would not have been sustained if the Insured Claimant had paid value for the Insured Mortgage.
4.Unenforceability of the lien of the Insured Mortgage because of the inability or failure of an Insured to comply with applicable doing-business
laws of the state where the Land is situated.5.Invalidity or unenforceability in whole or in part of the lien of the Insured Mortgage that arises out of the transaction evidenced by the
Insured Mortgage and is based upon usury or any consumer credit protection or truth-in-lending law. This Exclusion does not modify or limit
the coverage provided in Covered Risk 26.6.Any claim of invalidity, unenforceability or lack of priority of the lien of the Insured Mortgage as to Advances or modifications made after the
Insured has Knowledge that the vestee shown in Schedule A is no longer the owner of the estate or interest covered by this policy. This
Exclusion does not modify or limit the coverage provided in Covered Risk 11.7.Any lien on the Title for real estate taxes or assessments imposed by governmental authority and created or attaching subsequent to Date of
Policy. This Exclusion does not modify or limit the coverage provided in Covered Risk 11(b) or 25.
8.The failure of the residential structure, or any portion of it, to have been constructed before, on or after Date of Policy in accordance withapplicable building codes. This Exclusion does not modify or limit the coverage provided in Covered Risk 5 or 6.
9.Any claim, by reason of the operation of federal bankruptcy, state insolvency, or similar creditors' rights laws, that the transaction creating the
lien of the Insured Mortgage, is(a) a fraudulent conveyance or fraudulent transfer, or
(b) a preferential transfer for any reason not stated in Covered Risk 27(b) of this policy.
10.Contamination, explosion, fire, flooding, vibration, fracturing, earthquake, or subsidence.
11.Negligence by a person or an Entity exercising a right to extract or develop minerals, water, or any other substances.
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