Preliminary Title Report 2022-11-29 CA 7 Lots and Lettered LotsCLTA Preliminary Report Form Order Number: 6917169
(Rev. 11/06) Page Number: 1
First American Title
First American Title Company
207 Goode Avenue, Suite 410
Glendale, CA 91203
California Department of Insurance License No. 151
Title Officer: Michelle Pascual / Mina Chin
Phone: (818)550-2501
Fax No.: (866)878-7977
E-Mail: michelle.pascual@firstam.com
E-Mail Loan Documents to: Lenders please contact the Escrow Officer for email address for
sending loan documents.
Owner: Desert Polo Land Co
Property: Vacant Land; Apn: 777-500-016
Riverside, 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, a// 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
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.
First American Title
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Order Number: 6917169
Page Number: 2
Dated as of November 29, 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:
Build To Stay - Polo Villas, LLC, a Delaware 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.
First Installment: $1,176.15, OPEN
Penalty: $0.00
Second Installment: $1,176.15, OPEN
Penalty: $0.00
Tax Rate Area: 020-056
A. P. No.: 777-500-016
(Affects LOT 1)
2. General and special taxes and assessments for the fiscal year 2022-2023.
First Installment: $1,176.15, OPEN
Penalty: $0.00
Second Installment: $1,176.15, OPEN
Penalty: $0.00
Tax Rate Area: 020-056
A. P. No.: 777-500-017
(Affects LOT 2)
First American Title
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Order Number: 6917169
Page Number: 3
3. General and special taxes and assessments for the fiscal year 2022-2023.
First Installment: $1,176.15, OPEN
Penalty: $0.00
Second Installment: $1,176.15, OPEN
Penalty: $0.00
Tax Rate Area: 020-056
A. P. No.: 777-500-018
(Affects LOT 3)
4. General and special taxes and assessments for the fiscal year 2022-2023.
First Installment: $1,176.15, OPEN
Penalty: $0.00
Second Installment: $1,176.15, OPEN
Penalty: $0.00
Tax Rate Area: 020-056
A. P. No.: 777-500-019
(Affects LOT 4)
5. General and special taxes and assessments for the fiscal year 2022-2023.
First Installment: $1,082.60, OPEN
Penalty: $0.00
Second Installment: $1,082.60, OPEN
Penalty: $0.00
Tax Rate Area: 020-056
A. P. No.: 777-500-020
(Affects LOT 5)
6. General and special taxes and assessments for the fiscal year 2022-2023.
First Installment: $1,082.60, OPEN
Penalty: $0.00
Second Installment: $1,082.60, OPEN
Penalty: $0.00
Tax Rate Area: 020-056
A. P. No.: 777-500-021
(Affects LOT 6)
First American Title
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Order Number: 6917169
Page Number: 4
7. General and special taxes and assessments for the fiscal year 2022-2023.
First Installment: $1,035.82, OPEN
Penalty: $0.00
Second Installment: $1,035.82, OPEN
Penalty: $0.00
Tax Rate Area: 020-056
A. P. No.: 777-500-022
(Affects LOT 7)
8. General and special taxes and assessments for the fiscal year 2022-2023.
First Installment: $0.95, OPEN
Penalty: $0.00
Second Installment: $0.95, OPEN
Penalty: $0.00
Tax Rate Area: 020-056
A. P. No.: 777-500-023
(Affects LOT B)
9. General and special taxes and assessments for the fiscal year 2022-2023.
First Installment: $0.95, OPEN
Penalty: $0.00
Second Installment: $0.95, OPEN
Penalty: $0.00
Tax Rate Area: 020-056
A. P. No.: 777-500-025
(Affects LOT E)
10. The lien of supplemental taxes, if any, assessed pursuant to Chapter 3.5 commencing with Section 75
of the California Revenue and Taxation Code.
11. Rights, rights of way, reservations and exceptions in the patent recorded November 4, 1955 in Book
1816 of Patents, Page 301.
The location of the easement cannot be determined from record information.
12. The terms and provisions contained in the document entitled "RESOLUTION OF THE BOARD OF
DIRECTORS OF COACHELLA VALLEY WATER DISTRICT" recorded August 06, 2003 as INSTRUMENT
NO. 03-597460 of Official Records.
13. An easement for RIGHT OF WAY, PUBLIC UTILITY and incidental purposes, recorded August 09,
2007 as INSTRUMENT NO. 2007-0515129 of Official Records.
In Favor of: IMPERIAL IRRIGATION DISTRICT
Affects: as described therein
First American Title
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Order Number: 6917169
Page Number: 5
(Affects LOTS 1, 6, 7, B AND C)
14. The terms and provisions contained in the document entitled "MEMORANDUM OF RECIPROCAL
EASEMENT AND MAINTENANCE AGREEMENT" recorded April 27, 2015 as INSTRUMENT NO. 2015-
0170347 of Official Records.
The location of the easement cannot be determined from record information.
15. An easement shown or dedicated on the map of TRACT MAP NO. 33085 recorded December 21,
2017 and on file in Book 460, Page(s) 25-26, of Tract Maps.
For: PUBLIC UTILITY and incidental purposes.
(Affects LOTS 1 THROUGH 7 AND B THROUGH E)
16. An easement shown or dedicated on the map of TRACT MAP NO. 33085 recorded December 21,
2017 and on file in Book 460, Page(s) 25-26, of Tract Maps.
For: PEDESTRIAN, EQUESTRIAN, LANDSCAPE and incidental purposes.
(Affects LOT B)
17. An easement shown or dedicated on the map of TRACT MAP NO. 33085 recorded December 21,
2017 and on file in Book 460, Page(s) 25-26, of Tract Maps.
For: PUBLIC UTILITY TOGETHER WITH THE RIGHT OF INGRESS AND EGRESS FOR SERVICE AND
EMERGENCY VEHICLES, DOMESTIC WATER, SANITATION, 10' P.U.E., PRIVATE STREETS and
incidental purposes.
(Affects LOTS C AND D)
18. An easement shown or dedicated on the map of TRACT MAP NO. 33085 recorded December 21,
2017 and on file in Book 460, Page(s) 25-26, of Tract Maps.
For: LANDSCAPE AND DRAINAGE and incidental purposes.
(Affects LOT E)
19. Abutter's rights of ingress and egress to or from MADISON STREET have been relinquised on the
map of TRACT MAP NO. 33085 on file in book 460, page 25-26, of Tract Maps.
(Affects LOT B)
20. The terms and provisions contained in the document entitled SPECIAL DOMESTIC WATER SYSTEM
INSTALLATION AGREEMENT recorded September 19, 2018 as INSTRUMENT NO. 2018-0375100 of
Official Records.
21. The terms and provisions contained in the document entitled STANDARD DOMESTIC WATER SYSTEM
AND SANITATION SYSTEM INSTALLATION AGREEMENT recorded December 05, 2018
as INSTRUMENT NO. 2018-0473713 of Official Records.
22. The terms and provisions contained in the document entitled SIGNAGE COVENANT AND
AGREEMENT, executed by and between SALUDA GRADE SHORT TERM RENTAL INC., A MARYLAND
First American Title
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Order Number: 6917169
Page Number: 6
CORPORATION and DESERT POLO LAND COMPANY, LLC, A DELAWARE LIMITED LIABILITY
COMPANY, recorded March 22, 2022, as Instrument No. INSTRUMENT NO. 2022-137478 of Official
Records.
23. The terms and provisions contained in the document entitled ASSIGNMENT AND ASSUMPTION OF
DEVELOPMENT AGREEMENT, executed by and between GTGF, LLC, A DELAWARE LIMITED
LIABILITY COMPANY and SALUDA GRADE SHORT TERM RENTAL INC., A MARYLAND CORPORATION,
recorded March 25, 2022, as Instrument No. INSTRUMENT NO. 2022-0146080 of Official Records.
The terms and provisions contained in the document entitled "ASSIGNMENT AND ASSUMPTION OF
DEVELOPMENT AGREEMENT" recorded MAY 26, 2022 as INSTRUMENT NO. 2022-0243650 of Official
Records.
The terms and provisions contained in the document entitled "ASSIGNMENT AND ASSUMPTION OF
DEVELOPMENT AGREEMENT" recorded MAY 26, 2022 as INSTRUMENT NO. 2022-0243649 of Official
Records.
24. We find no outstanding voluntary liens of record affecting subject property. An inquiry should be
made concerning the existence of any unrecorded lien or other indebtedness which could give rise to
any security interest in the subject property.
25. Any facts, rights, interests or claims which would be disclosed by a correct ALTA/NSPS survey.
26. An ALTA/NSPS survey of recent date which complies with the current minimum standard detail
requirements for ALTA/NSPS land title surveys.
27. Water rights, claims or title to water, whether or not shown by the Public Records.
28. Rights of parties in possession.
First American Title
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Order Number: 6917169
Page Number: 7
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.
NOTE to proposed insured lender only: No Private transfer fee covenant, as defined in Federal
Housing Finance Agency Final Rule 12 CFR Part 1228, that was created and first appears in the Public
Records on or after February 8, 2011, encumbers the Title except as follows: None
1. Taxes for proration purposes only for the fiscal year 2022-2023.
First Installment: $0.00, NO TAX DUE
Second Installment: $0.00, NO TAX DUE
Tax Rate Area: 020-056
APN: 777-500-024
(Affects LOTS C AND D)
2. The property covered by this report is vacant land.
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 MARCH 22, 2022 as INSTRUMENT NO. 2022-137477 of Official Records.
From: DESERT POLO LAND COMPANY, LLC, A DELAWARE LIMITED LIABILITY
COMPANY
To: SALUDA GRADE SHORT TERM RENTAL INC., A MARYLAND
CORPORATION
A document recorded APRIL 29, 2022 as INSTRUMENT NO. 2022-0203644 of Official Records.
From: SALUDA GRADE SHORT TERM RENTAL INC., A MARYLAND
CORPORATION
To: SALUDA GRADE - AVANTSTAY STR REIT I LLC, A DELAWARE LIMITED
LIABILITY COMPANY
A document recorded APRIL 29, 2022 as INSTRUMENT NO. 2022-0203645 of Official Records.
From: SALUDA GRADE - AVANTSTAY STR REIT I LLC, A DELAWARE LIMITED
LIABILITY COMPANY
To: BUILD TO STAY - POLO VILLAS, LLC, A DELAWARE LIMITED LIABILITY
COMPANY
First American Title
Page 7 of 14
Order Number: 6917169
Page Number: 8
4. This preliminary report/commitment was prepared based upon an application for a policy of title
insurance that identified land by street address or assessor's parcel number only. It is the
responsibility of the applicant to determine whether the land referred to herein is in fact the land that
is to be described in the policy or policies to be issued.
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.
First American Title
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Order Number: 6917169
Page Number: 9
LEGAL DESCRIPTION
Real property in the City of La Quinta, County of Riverside, State of California, described as follows:
LOTS 1 THROUGH 7 AND LETTERED LOTS B THROUGH E OF TRACT MAP NO. 33085, IN THE CITY OF
LA QUINTA, COUNTY OF RIVERSIDE, STATE OF CALIFORNIA, AS PER MAP RECORDED IN BOOK 460,
PAGES 25 AND 26, OF MAPS, IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY.
APN: 777-500-016 (AFFECTS: LOT 1); 777-500-017 (AFFECTS: LOT 2); 777-500-018 (AFFECTS: LOT
3); 777-500-019 (AFFECTS: LOT 4); 777-500-020 (AFFECTS: LOT 5); 777-500-021 (AFFECTS: LOT
6); 777-500-022 (AFFECTS: LOT 7); 777-500-023 (AFFECTS: LOT B); 777-500-024 (AFFECTS: LOTS
C AND D); 777-500-025 (AFFECTS: LOT E)
First American Title
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Order Number: 6917169
Page Number: 10
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First American Title
Page 10 of 14
Order Number: 6917169
Page Number: 11
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.
First American Title
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Order Number: 6917169
Page Number: 12
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)
First American Title
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Order Number: 6917169
Page Number: 13
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,
First American Title
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Order Number: 6917169
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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.
First American Title
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