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HomeMy WebLinkAboutPA2023-0183_20231003_Title Preliminary Report Page 1 of 18 18-13871 Property ID Title Company 1001 Wilshire Blvd., 2nd Floor, Los Angeles, CA 90017 Property ID Title Company 1001 Wilshire Blvd., 2nd Floor Los Angeles, CA 90017 Hamid Kianipur 3 Goleta Point Drive Corona del Mar, CA 92625 ATTN: REF. NO.: ORDER NO.: 18-13871 PLEASE FIND ENCLOSED HEREWITH ITEMS CHECKED BELOW: ( )OWNER’S POLICY ( )LOAN POLICY ( )BINDER ( )CORRECTED GUARANTEE, POLICY AND/OR ENDORSEMENT ( )SUPPORTING DOCUMENTS FOR ITEM NO(S) ( )ENDORSEMENT ( X )PRELIMINARY REPORT ( )TRUSTEES SALE GUARANTEE ( )OTHER _________________________________________ ROBERT CASTANON, TITLE OFFICER Page 2 of 18 18-13871 Property ID Title Company 1001 Wilshire Blvd., 2nd Floor, Los Angeles, CA 90017 PRELIMINARY REPORT Hamid Kianipur 3 Goleta Point Drive Corona del Mar, CA 92625 Title Officer: Property ID Title Company Email: rcastanon@propertyidtitle.com Phone No.: (844) 743-8485 x332 Attn: File No.: 18-13871 Your Reference No.: Property Address: 2201 East Coast Highway, Corona del Mar, CA 92625 Newport Beach Dated as of August 2, 2018 In response to the above referenced application for a policy of title insurance, Property ID Title 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. 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. Page 3 of 18 18-13871 Property ID Title Company 1001 Wilshire Blvd., 2nd Floor, Los Angeles, CA 90017 SCHEDULE “A” The form of policy of title insurance contemplated by this report is: ALTA Homeowner’s Policy ALTA Lender’s Policy The estate or interest in the land hereinafter described or referred to covered by this Report is: A FEE Title to said estate or interest at the date hereof is vested in: HAMID KIANIPUR AND AMETHYST B. KIANIPUR, husband and wife as joint tenants The land referred to in this Report is situated in the State of California, County of Orange, and is described as follows: SEE EXHIBIT “A” ATTACHED HERETO AND MADE A PART HEREOF. Page 4 of 18 18-13871 Property ID Title Company 1001 Wilshire Blvd., 2nd Floor, Los Angeles, CA 90017 EXHIBIT “A” LOTS 1, 2 AND 3 OF TRACT NO. 682, IN THE CITY OF NEWPORT BEACH, COUNTY OF ORANGE, STATE OF CALIFORNIA, AS SHOWN ON A MAP RECORDED IN BOOK 20 PAGE 19 OF MISCELLANEOUS MAPS, IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY APN: 459-081-01 Page 5 of 18 18-13871 Property ID Title Company 1001 Wilshire Blvd., 2nd Floor, Los Angeles, CA 90017 SCHEDULE “B” – Section A AT THE DATE HEREOF, EXCEPTIONS TO COVERAGE IN ADDITION TO THE PRINTED EXCEPTIONS AND EXCLUSIONS IN SAID POLICY FORM WOULD BE AS FOLLOWS: 1. Note: Property taxes for the fiscal year shown below are PAID. For proration purposes the amounts were: Tax Identification No.: 459-081-01 Fiscal Year: 2017-2018 1st Installment: $7,318.27 2nd Installment: $7,318.27 Exemption: None Land: 1,016,808 Improvements: 339,768 Code Area: 07-001 2. The lien of supplemental taxes, if any, assessed pursuant to the provisions of Chapter 3.5 (Commencing with Section 75) of the Revenue and Taxation Code of the State of California. 3. Water rights, claims or title to water, whether or not disclosed by the public records. 4. Any easements not disclosed by those public records which impart contructive notice as to matters affecting title to real property and which are not visible and apparent from an inspection of the surface of said land. 5. Easement(s) for the purpose(s) shown below and rights incidental thereto as recorded in a document; Purpose: Public highway Recorded: (book) 945 (page) 201 of Official Records Affects: Northerly 10 feet No representation is made as to the present ownership of said easement. 6. Easement(s) for the purpose(s) shown below and rights incidental thereto as recorded in a document; Purpose: street and highway Recorded: (book) 10076 (page) 964 of Official Records Affects: a portion of said land And re-recorded in Book 10109 Page 42 of Official Records No representation is made as to the present ownership of said easement. 7. A deed of trust to secure an indebtedness in the amount shown below, Amount: $ $817,500.00 Dated: December 22, 2003 Trustor: Hamid Kianipur and Amethyst Kianpur Trustee: LandAmerica Lawyers Title Company Beneficiary: Wachovia Commercial Mortgage, Inc. Recording Date: December 22, 2003 Recording No.: 03-1513252 Page 6 of 18 18-13871 Property ID Title Company 1001 Wilshire Blvd., 2nd Floor, Los Angeles, CA 90017 By the provisions of an agreement dated April 15, 2004 and recorded April 22, 2004 as instrument no. 2004000341505 which states the above deed of trust was made subordinate to the lien of the document or interest described in the instrument shown as item number _ of Schedule B Recorded Date: 12/22/2003 Instrument No.: 2003001513252 8. The effect of a Access Agreement Site no. 253797 Executed by: Hamid Kianipur and Amethyst B. Kianipur, husband and wife as joint tenants and ConocoPhillips Company, a Delaware Corporation, successor by merger to Tosco Corporation, a Nevada Corporation Recorded: December 24, 2003 as Instrument No. 03-1513256, Official Records 9. The effect of a Memorandum of Repurchase Option From: ConocoPhillips Company, a Delaware Corporation To: Hamid Kianipur and Amethyst B. Kianipur, husband and wife as joint tenants Dated: December 24, 2003 Recording Date: December 24, 2003 Recording No.: 03-1513257 10. A deed of trust to secure an indebtedness in the amount shown below, Amount: $ $459,000.00 Dated: February 3, 2004 Trustor: Hamid Kianpur and Amethyst B. Kianipur, husband and wife as joint tenants Trustee: First American Title Company Beneficiary: CDC Small Business Finance Corp Recording Date: April 22, 2004 Recording No.: 2004000341506 An assignment of the beneficial interest under said deed of trust which names: Assignee: United States Small Business Administration Recording Date: April 22, 2004 Recording No.: 2004000341507 11. A financing statement filed in the Office of the County Recorder, Showing: Debtor: Hamid Kianipur Secured Party: Bank of the West Recorded: May 13, 2009 Instrument No.: 2009000238928 12. A document entitled: " Memorandum of Purchase Option and Right of First Refusal" Dated: January 1, 2014 Executed By: Phillips 66 Company and Pacific West General Store Inc Recorded: January 22, 2014 2014000025453 Subject to the terms, provisions and conditions contained therein. Page 7 of 18 18-13871 Property ID Title Company 1001 Wilshire Blvd., 2nd Floor, Los Angeles, CA 90017 Reference is hereby made to said document for full particulars. 13. A deed of trust to secure an indebtedness in the amount shown below, Amount: $ $70,000.00 Dated: January 1, 2014 Trustor: Hamid Kianipur and Amethyst B. Kianipur, husband and wife as joint tenants Trustee: First American Title Insurance Company Beneficiary: Phillips 66 Company Recording Date: February 25, 2014 Recording No.: 2014000071094 14. A document entitled: " Notice of Assessment City of Newport Beach" Dated: March 24, 2016 Executed By: City of Newport Beach Recorded: March 28, 2016 and Amended on 6/13/2018 as Instrument No. 2018000215616, Official Records Subject to the terms, provisions and conditions contained therein. Reference is hereby made to said document for full particulars. 15. Any rights of the parties in possession of a portion of, or all of, said Land, which rights are not disclosed by the public records. The Company will require, for review, a full and complete copy of any unrecorded agreement, contract, license and/or lease, together with all supplements, assignments and amendments thereto, before issuing any policy of title insurance without excepting this item from coverage. The Company reserves the right to except additional items and/or make additional requirements after reviewing said documents. 16. This transaction may be subject to the current FinCENGeographic Targeting Order affecting sale transactions. This issuing agent may be required by federal law to collect certain additional information from the proposed insureds regarding this purchase of real property. United States Code Title 31 Section 5326 authorizes the U.S. Department of Treasury to collect information about certain transactions in specified geographic areas in order to carry out the purposed or prevent evasions of the Bank Secrecy Act. END OF SCHEDULE B PLEASE REFER TO THE “NOTES AND REQUIREMENTS SECTION” WHICH FOLLOWS FOR INFORMATION NECESSARY TO COMPLETE THIS TRANSACTION - Page 8 of 18 18-13871 Property ID Title Company 1001 Wilshire Blvd., 2nd Floor, Los Angeles, CA 90017 REQUIREMENTS SECTION: Req. No. 1:The Company will require a statement of information from the parties named below in order to complete this report, based on the effect of documents, proceedings, liens, decrees, or other matters which do not specifically describe said land, but which, if any do exist, may affect the title or impose liens or encumbrances thereon. Parties: and Hamid Kianipur (Note: The statement of information is necessary to complete the search and examination of title under this order. Any title search includes matters that are indexed by name only, and having a completed statement of information assists the Company in the elimination of certain matters which appear to involve the parties but in fact affect another party with the same or similar name. Be assured that the statement of information is essential and will be kept strictly confidential to this file.) End of Requirements Page 9 of 18 18-13871 Property ID Title Company 1001 Wilshire Blvd., 2nd Floor, Los Angeles, CA 90017 INFORMATIONAL NOTES SECTION Note No. 1:The information on the attached plat is provided for your convenience as a guide to the general location of the subject property. The accuracy of this plat is not guaranteed, nor is it a part of any policy, report or guarantee to which it may be attached. Note No. 2:WIRING INSTRUCTIONS FOR THIS OFFICE ARE: ATTACHED Note No. 3:The charges which the company will make for next day messenger services (i.e. Federal Express, UPS, Airborne, Express mail, etc.) are $15.00 per letter, standard overnight service, and $25.00 for larger size packages and/or priority delivery services. Such charges include the cost of such messenger service and the company's expenses for arranging such messenger service and its overhead and profit. Special messenger services will be billed at the cost of such services. Note No. 4:The insurer in policies of title insurance, when issued in this transaction, will be North American Title Insurance Company Note No. 5:The following information will be included in the CLTA Form 116 Endorsement to be issued pursuant to this order: There is located on said land a Commercial Structure Known as 2201 East Coast Highway, Corona del Mar, CA 92625 Note No. 6:The only conveyances affecting said land, which recorded within Twenty-four (24) months of the date of this report, are as follows: None Note No. 7:Good Funds Law Under Section 12413.1 of the California Insurance Code, Property ID Title Company, may only make funds available for disbursement in accordance with the following rules: Same day availability. Disbursement on the date of deposit is allowed only when funds are deposited to Property ID Title Company by Cash or Electronic Transfer (Wire). Cash will be accepted only under special circumstances and upon approval by management. Next business day availability. If funds are deposited to Property ID Title Company by cashier.s checks, certified checks or teller.s checks, disbursement may be on the next business day following deposit. A .teller.s check. is one drawn by an insured financial institution against another insured financial institution (e.g., a savings and loan funding with a check drawn against a FDIC insured bank). Second business day availability. If the deposit is made by checks other than those described in paragraphs 1 and 2 above, disbursement may occur on the day when funds must be made Page 10 of 18 18-13871 Property ID Title Company 1001 Wilshire Blvd., 2nd Floor, Los Angeles, CA 90017 available to depositors under Federal Reserve Regulation CC. In most cases, these checks will be available on the second business day following deposit. (For further details, consult California Insurance Code Section 12413, et seq. and Regulation CC). These are the minimum periods before funds will be made available. Property ID Title Company is not obligated to disburse funds at the expiration of the time periods above, and expressly reserves the right to require additional time before disbursing on deposited funds. Close of escrow and final disbursement will not be made based on deposits in the form of personal checks, corporate checks, credit union checks, money market checks, travelers checks and official checks until confirmation of final clearance of the funds. Property ID Title Company will not be responsible for accruals of interest or other charges resulting from compliance with the disbursement restrictions imposed by state law. Page 11 of 18 18-13871 Property ID Title Company 1001 Wilshire Blvd., 2nd Floor, Los Angeles, CA 90017 Page 12 of 18 18-13871 Property ID Title Company 1001 Wilshire Blvd., 2nd Floor, Los Angeles, CA 90017 Page 13 of 18 18-13871 Property ID Title Company 1001 Wilshire Blvd., 2nd Floor, Los Angeles, CA 90017 CLTA Preliminary Report Form - Exhibit A (06-05-14) 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. Page 14 of 18 18-13871 Property ID Title Company 1001 Wilshire Blvd., 2nd Floor, Los Angeles, CA 90017 4.Discrepancies, conflicts in boundary lines, shortage in area, encroachments, or any other facts which a correct survey would disclose, and which are not shown by the public records. 5.(a) Unpatented mining claims; (b) reservations or exceptions in patents or in Acts authorizing the issuance thereof; (c) water rights, claims or title to water, whether or not the matters excepted under (a), (b) or (c) are shown by the public records. 6.Any lien or right to a lien for services, labor or material not shown by the public records. 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; 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. 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: l 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: Page 15 of 18 18-13871 Property ID Title Company 1001 Wilshire Blvd., 2nd Floor, Los Angeles, CA 90017 Your Deductible Amount Our Maximum Dollar Limit of Liability Covered Risk 16:1% of Policy Amount Shown in Schedule A or $10,000.00 (whichever is less)$2,500.00 Covered Risk 18:1% of Policy Amount Shown in Schedule A or $25,000.00 (whichever is less)$5,000.00 Covered Risk 19:1% of Policy Amount Shown in Schedule A or $25,000.00 (whichever is less)$5,000.00 Covered Risk 21:1% of Policy Amount Shown in Schedule A or $5,000.00 (whichever is less)$2,500.00 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: Page 16 of 18 18-13871 Property ID Title Company 1001 Wilshire Blvd., 2nd Floor, Los Angeles, CA 90017 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 not shown by the Public Records. ] 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 (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 Page 17 of 18 18-13871 Property ID Title Company 1001 Wilshire Blvd., 2nd Floor, Los Angeles, CA 90017 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 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 not shown by the Public Records. 7.[Variable exceptions such as taxes, easements, CC&R's, etc. shown here.] ALTA EXPANDED COVERAGE RESIDENTIAL LOAN POLICY (12-02-13) EXCLUSIONS FROM COVERAGE The following matters are expressly excluded from the coverage of this policy and the Company will not pay loss or damage, costs, attorneys' fees or expenses which arise by reason of: 1.(a)Any law, ordinance, permit, or governmental regulation (including those relating to building and zoning) restricting, regulating, prohibiting, or relating to (i) the occupancy, use, or enjoyment of the Land; (ii) the character, dimensions, or location of any improvement erected on the Land; (iii) the subdivision of land; or (iv) environmental protection; or the effect of any violation of these laws, ordinances, or governmental regulations. This Exclusion 1(a) does not modify or limit the coverage provided under Covered Risk 5, 6, 13(c), 13(d), 14 or 16. (b)Any governmental police power. This Exclusion 1(b) does not modify or limit the coverage provided under Covered Risk 5, 6, 13(c), 13(d), 14 or 16. 2.Rights of eminent domain. This Exclusion does not modify or limit the coverage provided under Covered Risk 7 or 8. 3.Defects, liens, encumbrances, adverse claims, or other matters (a) created, suffered, assumed, or agreed to by the Insured Claimant; Page 18 of 18 18-13871 Property ID Title Company 1001 Wilshire Blvd., 2nd Floor, Los Angeles, CA 90017 (b) not Known to the Company, not recorded in the Public Records at Date of Policy, but Known to the Insured Claimant and not disclosed in writing to the Company by the Insured Claimant prior to the date the Insured Claimant became an Insured under this policy; (c) resulting in no loss or damage to the Insured Claimant; (d) attaching or created subsequent to Date of Policy (however, this does not modify or limit the coverage provided under Covered Risk 11, 16, 17, 18, 19, 20, 21, 22, 23, 24, 27 or 28); or (e) resulting in loss or damage that would not have been sustained if the Insured Claimant had paid value for the Insured Mortgage. 4.Unenforceability of the lien of the Insured Mortgage because of the inability or failure of an Insured to comply with applicable doing-business laws of the state where the Land is situated. 5.Invalidity or unenforceability in whole or in part of the lien of the Insured Mortgage that arises out of the transaction evidenced by the Insured Mortgage and is based upon usury, or any consumer credit protection or truth-in-lending law. This Exclusion does not modify or limit the coverage provided in Covered Risk 26. 6.Any claim of invalidity, unenforceability or lack of priority of the lien of the Insured Mortgage as to Advances or modifications made after the Insured has Knowledge that the vestee shown in Schedule A is no longer the owner of the estate or interest covered by this policy. This Exclusion does not modify or limit the coverage provided in Covered Risk 11. 7.Any lien on the Title for real estate taxes or assessments imposed by governmental authority and created or attaching subsequent to Date of Policy. This Exclusion does not modify or limit the coverage provided in Covered Risk 11(b) or 25. 8. The failure of the residential structure, or any portion of it, to have been constructed before, on or after Date of Policy in accordance with applicable building codes. This Exclusion does not modify or limit the coverage provided in Covered Risk 5 or 6. 9. Any claim, by reason of the operation of federal bankruptcy, state insolvency, or similar creditors' rights laws, that the transaction creating the lien of the Insured Mortgage, is (a) a fraudulent conveyance or fraudulent transfer, or (b) a preferential transfer for any reason not stated in Covered Risk 27(b) of this policy. 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.