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Prelim Report Amended 2023-10-19///` Stewart TITLE Stewart Title of California, Inc. 73-020 El Paseo, Ste 103 Palm Desert, CA 92260 Order No.: Your File No.: Buyer/Borrower Name: Seller Name: Teo Cadenas Title Officer PRELIMINARY REPORT Stewart Title of California, Inc. 11870 Pierce Street, Ste 100 Riverside, CA 92505 Phone: (951) 276-2700 Fax: (951) 344-8298 teo.cadenas@stewart.com cadenasteam@stewart.com 1925187 1925187 La Quinta Housing Authority, a public body, a corporate and politic BP Dune Palms, LP, a California limited partnership Property Address: Parcel 1 of Marcel Map 38668, Vacant Land Portion of APN 600-030-038, La Quinta, CA 92253 In response to the above referenced application for a Policy of Title Insurance, Stewart Title of California, Inc. hereby reports that it is prepared to issue, or cause to be issued, as of the date hereof, a Stewart Title Guaranty Company 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 referenced to as an Exception on Schedule B 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 Limits 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 thereto) 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. Dated as of October 19, 2023 at 7:30AM Amendment No. 1 Update No. 1 When replying, please contact: Tamara Blackford, Escrow Officer Stewart Title of California, Inc. 73-020 El Paseo, Ste 103 Palm Desert, CA 92260 (760) 771-4645 tblackford@stewart.com Order No.: 1925187 Preliminary Report Page 1 of 9 IF ANY DECLARATION, GOVERNING DOCUMENT (FOR EXAMPLE, COVENANT, CONDITION OR RESTRICTION) OR DEED IDENTIFIED AND/OR LINKED IN THIS TITLE PRODUCT CONTAINS ANY RESTRICTION BASED ON AGE, RACE COLOR, RELIGION, SEX, GENDER, GENDER IDENTITY, GENDER EXPRESSION, SEXUAL ORIENTATION, FAMILIAL STATUS, MARITAL STATUS, DISABILITY, VETERAN OR MILITARY STATUS, GENETIC INFORMATION, NATIONAL ORIGIN, SOURCE OF INCOME AS DEFINED IN SUBDIVISION (p) OF SECTION 12955, OR ANCESTRY, THAT RESTRICTION VIOLATES STATE AND FEDERAL FAIR HOUSING LAWS AND IS VOID, AND MAY BE REMOVED PURSUANT TO SECTION 12956.2 OF THE GOVERNMENT CODE BY SUBMITTING A "RESTRICTIVE COVENANT MODIFICATION" FORM, TOGETHER WITH A COPY OF THE ATTACHED DOCUMENT WITH THE UNLAWFUL PROVISION REDACTED TO THE COUNTY RECORDER'S OFFICE. THE "RESTRICTIVE COVENANT MODIFICATION" FORM CAN BE OBTAINED FROM THE COUNTY RECORDER'S OFFICE AND MAY BE AVAILABLE ON ITS WEBSITE. THE FORM MAY ALSO BE AVAILABLE FROM THE PARTY THAT PROVIDED YOU WITH THIS DOCUMENT. LAWFUL RESTRICTIONS UNDER STATE AND FEDERAL LAW ON THE AGE OF OCCUPANTS IN SENIOR HOUSING OR HOUSING FOR OLDER PERSONS SHALL NOT BE CONSTRUED AS RESTRICTIONS BASED ON FAMILIAL STATUS. Order No.: 1925187 Preliminary Report Page 2 of 9 PRELIMINARY REPORT The form of Policy of Title Insurance contemplated by this report is: ❑X Standard Coverage Owner's Policy ❑ Extended Coverage Owner's Policy ❑ CLTA/ALTA Homeowners Policy ❑X Standard Coverage Loan Policy ❑ Extended Coverage Loan Policy ❑ Short Form Residential Loan Policy SCHEDULE A The estate or interest in the land hereinafter described or referred to covered by this report is: FEE Title to said estate or interest at the date hereof is vested in: DWCG1, LLC Order No.: 1925187 Preliminary Report Page 3 of 9 LEGAL DESCRIPTION The land referred to herein is situated in the State of California, County of Riverside, City of La Quinta and described as follows: Parcel 1 of Parcel Map 38668 in the City of La Quinta , County of Riverside , State of California , per map recorded in Book 257 pages 35 throught 38 of Parcel Maps, records of Riverside County, California. APN: Portion of 600-030-038 (End of Legal Description) MAP THE MAP(S) CONNECTED HEREWITH IS BEING PROVIDED AS A COURTESY AND FOR INFORMATIONAL PURPOSES ONLY; THIS MAP SHOULD NOT BE RELIED UPON. FURTHERMORE, THE PARCEL(S) SET OUT ON THE MAP(S) MAY NOT COMPLY WITH LOCAL SUBDIVISION OR BUILDING ORDINANCES. STEWART TITLE OF CALIFORNIA, INC. AND STEWART TITLE GUARANTY COMPANY ASSUME NO LIABILITY, RESPONSIBILITY OR INDEMNIFICATION RELATED TO THE MAP(S). Order No.: 1925187 Preliminary Report Page 4 of 9 SCHEDULE B At the date hereof, exceptions to coverage in addition to the printed exceptions and exclusions contained in said policy or policies would be as follows: Taxes: A. General and special city and/or county taxes, including any personal property taxes, and any assessments collected with taxes, for the fiscal year 2023 - 2024: 1st Installment : $44,057.88 Status 1st : Paid 2nd Installment: : $44,057.88 Status 2nd : Paid Parcel No. : 600-030-038 Code Area/Tracer No. : 020-026 B. 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. C. Taxes and/or assessments affecting the Land, if any, for community facility districts, including Mello Roos, which may exist by virtue of assessment maps or filed notices. These taxes and/or assessments are typically collected with the county taxes; however, sometimes they're removed and assessed and collected separately. D. Prior to recording, the final amount due for taxes must be confirmed with tax collector. Exceptions: 1. Affects the Land and other property 2. Taxes or assessments which are not shown as existing liens by the records of the taxing authority that levies taxes or assessments on real property or by the public records. Proceeding 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. 3. 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 by making inquiry of persons in possession thereof. 4. Easements, liens or encumbrances, or claims thereof, which are not shown by the public records. 5. Discrepancies, conflicts in boundary lines, shortage in area, encroachments, or other facts which a correct survey would disclose, and which are not shown by the public records. 6. (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. 7. 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. Order No.: 1925187 Preliminary Report Page 5 of 9 8. Water rights, claims or title to water in, on or under the Land, whether or not shown by the public records. 9. Matters contained in Parcel Map No. 38668 , Book 257, Page 35 of Maps. 10. Rights of access to or from the public road or street, highway or freeway adjacent to the Land were relinquished or severed as disclosed on Map No. 38668, Book 257, Page 35 of Parcel Maps of Official Records, access point as shown on map. 11. Ownership of, or rights to, minerals or other substances, subsurface and surface, of whatsoever kind, including, but not limited to coal, ores, metals, lignite, oil, gas, geothermal resources, brine, uranium, clay, rock, sand and gravel in, on, under and that may be produced from the Land, together with all rights, privileges, and immunities relating thereto, whether the ownership or rights arise by lease, grant, exception, conveyance, reservation or otherwise, and whether or not appearing in the public records or listed in Schedule B. Stewart Title Guaranty Company and its issuing agent make no representation as to the present ownership of any such interests. There may be leases, grants, exceptions, or reservations of interests that are not listed. 12. Easement and rights incidental thereto for public road and utility, as set forth in a document recorded March 22, 1933 in Book 122, Page 374 of Official Records. 13. Easement and rights incidental thereto for slope, as set forth in a document recorded September 12, 1968 as Instrument No. 87898 of Official Records. 14. Easement and rights incidental thereto for pipeline, as set forth in a document recorded February 10, 2006 as Instrument No. 2006-0103470 of Official Records. 15. Matters contained in document entitled Reciprocal Easement and Access Agreement recorded March 28, 2006 as Instrument No. 2006-0219365 of Official Records. 16. Easement and rights incidental thereto for pipeline, as set forth in a document recorded March 29, 2006 as Instrument No. 2006-224092 of Official Records. 17. Easement and rights incidental thereto for pipeline, as set forth in a document recorded March 29, 2006 as Instrument No. 2006-224094 of Official Records. 18. intentionally deleted 19. intentionally deleted 20. Any claim based upon the assertion that some portion of the Land:: (a) is tidal or submerged, or has been created by artificial means, or has accreted to the created portions; or (b) has been brought within its boundaries by an avulsive movement that occurred in the river or slough known as CVCWD Stormwater Channel. 21. Rights of the successor agency(ies) as to matters contained in the project plan recorded October 4, 2007 as Instrument No. 2007-0619749, of Official Records. 22. intentionally deleted Order No.: 1925187 Preliminary Report Page 6 of 9 23. Matters contained in document entitled Final Order of Condemnation recorded March 31, 2022 as Instrument No. 2022-0154402 of Official Records. 24. Easement and rights incidental thereto for roadway and public utility purposes to City of La Quinta, a Municipal corporation, as set forth in a document recorded March 31, 2022 as Instrument No. 2022-0154402 of Official Records. 25. Rights of parties in possession whether or not recorded in the public records. 26. Any facts, rights, interests or claims which would be disclosed by an inspection of the Land. 27. Any lien, or right to a lien, for services, labor, materials or equipment heretofore or hereafter furnished, imposed by law and not shown by the public records. (End of Exceptions) Order No.: 1925187 Preliminary Report Page 7 of 9 NOTES AND REQUIREMENTS A. Please be advised that the search did not disclose any open deeds of trust. If you have knowledge of any outstanding obligations, please contact your title officer immediately for further review. B. In order to insure a conveyance, acquisition or encumbrance by the foreign liability company named below, you must provide the following: Limited liability company: DWCG1, LLC (a) Evidence that the limited liability company was duly formed in its home state, is in good standing and its right to do business has not been suspended for any reason. (b) Original certified copies of the limited liability company application for registration (Form LLC - 5) filed with the California Secretary of State and any filed amendment (Form LLC -6), if any. (c) A copy of the operating agreement and any amendment thereto. Additional requirements or items may be requested upon review of the required documents set forth above. C. There are no transfers or conveyances shown in the public records within 24 months of the date of this Preliminary Report. If you have knowledge of any transfers or conveyances, please contact your title officer immediately for further requirements. D. If an Owner's Policy of title insurance is requested, a CLTA Standard Coverage Owner's Policy will be issued unless instructed otherwise. If a different form of policy is desired, please contact your Title Officer. E. All Transactions - Seller(s) and Buyer(s) or Borrowers are provided, as attachments, the document entitled "Acknowledgement of Receipt, Understanding and Approval of STG Privacy Notice for Stewart Title Companies and Stewart's Affiliated Business Arrangement Disclosure Statement" and the individually named documents, for review and acknowledgment prior to closing. F. All Transactions - Buyer(s)/Seller(s)/Borrower(s) are provided the Preliminary Report for review and acknowledgment prior to closing. Buyer(s) approval shall include the Preliminary Report items that are to remain as exceptions to the title policy. G. All Transactions - Seller(s)/Owner(s) are provided Stewart Title Guaranty Company's Owner's Affidavit and Indemnity for completion and submission prior to closing. Order No.: 1925187 Preliminary Report Page 8 of 9 CALIFORNIA "GOOD FUNDS" LAW California Insurance Code Section 12413.1 regulates the disbursement of escrow and sub -escrow funds by title companies. The law requires that funds be deposited in the title company escrow account and available for withdrawal prior to disbursement. Funds received by Stewart Title of California, Inc. via wire transfer may be disbursed upon receipt. Funds received via cashier's checks or teller checks drawn on a California Bank may be disbursed on the next business day after the day of deposit. If funds are received by any other means, recording and/or disbursement may be delayed, and you should contact your title or escrow officer. All escrow and sub -escrow funds received will be deposited with other escrow funds in one or more non-interest bearing escrow accounts in a financial institution selected by Stewart Title of California, Inc.. Stewart Title of California, Inc. may receive certain direct or indirect benefits from the financial institution by reason of the deposit of such funds or the maintenance of such accounts with the financial institution, and Stewart Title of California, Inc. shall have no obligation to account to the depositing party in any manner for the value of, or to pay to such party, any benefit received by Stewart Title of California, Inc.. Such benefits shall be deemed additional compensation to Stewart Title of California, Inc. for its services in connection with the escrow or sub -escrow. If any check submitted is dishonored upon presentation for payment, you are authorized to notify all principals and/or their respective agents of such nonpayment. Order No.: 1925187 Preliminary Report Page 9 of 9 EXHIBIT "A" LEGAL DESCRIPTION Order No.: 1925187 Escrow No.: 1925187 The land referred to herein is situated in the State of California, County of Riverside, City of La Quinta and described as follows: Parcel 1 of Parcel Map 38668 in the City of La Quinta , County of Riverside , State of California , per map recorded in Book 257 pages 35 throught 38 of Parcel Maps, records of Riverside County, California. APN: Portion of 600-030-038 (End of Legal Description) OWNER'S AFFIDAVIT AND INDEMNITY Order No.: 1925187 Address/Location: Parcel 1 of Marcel Map 38668, Vacant Land Portion of APN 600-030-038, La Quinta, CA 92253 APN: Portion of 600-030-038 In connection with the request of the Undersigned ("Affiant") for the preparation and issuance of insurance, Affiant makes the following statements and representations for the benefit of, and reliance by, title insurer STEWART TITLE GUARANTY COMPANY, and its policy issuing agent STEWART TITLE OF CALIFORNIA, INC. (collectively hereafter referred to as "TITLE"): 1. Affiant owns and holds title to the land described in Schedule A of the Preliminary Report or Commitment issued in connection with the above referenced Order Number (the "Land"). 2. The Affiant's ownership and/or possession of the Land has been peaceful and undisturbed, and title thereto has never been disputed, questioned or rejected, nor has the issuance of title insurance ever been refused, except as follows: (If none, please state "none") 3. Other than the Affiant, there are no parties entitled to possession of the Land other than the following: (If none, please state "none") 4. There are no leases, licenses, options, rights of first refusal, or contracts to sell, affecting the Land, or any parties currently in possession, of the Land, except the following: (If none, please state "none") 5. All assessments by a management company or owners' association, or for common area or building maintenance, if any, are paid current or are not yet due and payable except for the following. (If none, please state "none") 6. There are no pending contemplated repairs/improvements to the Land, except the following: (If none, please state "none) 7. There has been no construction, building materials, repairs, improvements, or remodeling performed, provided, furnished or delivered within the last 12 months, except as follows: (If none, please state "none") This work performed, as detailed above, was completed on (date of completion). 8. Affiant is not aware of the existence of any of the following: a. Improvements, including fences, encroaching into any easements on the Land, or over any boundary lines of the Land. b. Adjoining property improvements encroaching onto the Land. c. Liens against the Land and/or judgments or tax liens against Affiant or any other property owner currently in title, except those described in the Preliminary Report or Commitment issued in connection with the above referenced Order Number. d. Outstanding claims or persons entitled to claims for mechanics' or materialman liens against the Land. e. Pending repairs/improvements to any adjacent street(s) or any assessments related to road maintenance f. Any pending litigation involving the Land, the Affiant or any other property owner currently in title. g. Recent improvements completed or being made to any common area(s) located within the subdivision in which the Land is located. h. Violations of building permits, zoning laws or recorded covenants, conditions and/or restrictions imposed on the Land. i. Any pending assessments for Community Facility Districts. Order No.: 1925187 Owners Affidavit and Indemnity CA Page 1 of 3 Rev. 9/2021 j. Any new, pending or existing obligation or loan including any home improvements on the Land pursuant to the PACE or HERO program, or any other similar type program. k. Any unrecorded or recorded easements, covenants, conditions, or restrictions affecting the Land, other than those listed in the Preliminary Report or Title Commitment. 1. Any use of the property for the production, sale, warehousing or transporting of fresh fruits, vegetables, livestock or poultry (e.g., supermarkets, restaurants, wineries, breweries and meat packing plants). With regard to 8a. -8I, except as follows: (If none, please state "none") 9. No proceedings in bankruptcy or receivership have been instituted or filed by, or against, the Affiant or any other property owner currently in title. 10. There are no unpaid taxes, assessments or utility type bills including but not limited to bills for water, sewer, hazardous waste, recycling, storm drain and/or rubbish and there are no liens related to such utilities from or on the Land, with the exception of the following: (If none, please state "none") 11. There are no financial obligations secured by trust deeds, mortgages, financing statements, vendor's liens, security agreements or otherwise, against the Land, except as set forth in the Preliminary Report, proforma and/or Commitment, and as set forth below: (If none, please state "none") Creditor Approximate Balance 12. There has been no harvesting or production of any oil, gas, geothermal materials or other minerals from or on the Land and there are no oil, gas, geothermal and/or mineral leases, licenses, options, rights of first refusal, and/or contracts to sell, affecting the mineral rights associated with the Land, or other parties currently in possession, of the mineral rights on the Land, except the following: (If none, please state "none") 13. Other than the Affiant, there are no other parties currently in possession of the Land, including but not limited to, any possessory interest associated with the harvesting of any oil, gas, geothermal materials or other minerals, except the following: (If none, please state "none") 14. Affiant has not executed and will not execute any documents or instruments related to the title to, or interest in, the Land prior to the recordation of the documents in this transaction. 15. By signing below, Affiant agrees to cooperate with TITLE and, upon request from TITLE, to promptly provide and/or execute, any corrective or curative information or documentation requested. This is a sworn affidavit and is made for the purpose of inducing TITLE to provide certain insurance coverage to a purchaser and/or lender, and the representations contained herein are material to such insurance coverage. The undersigned hereby indemnifies and holds Stewart Title Guaranty Company and its policy issuing agent identified above harmless from any loss or damage, liability, costs, expenses and attorneys' fees which it may sustain under its policies of title insurance or commitments to the extent any representation contained herein is incorrect. The undersigned understands that TITLE may decide not to provide the requested title insurance despite the information and affirmations contained herein. PLEASE READ, COMPLETE AND RESPOND TO ALL STATEMENTS CONTAINED IN THIS OWNER'S AFFIDAVIT AND INDEMNITY BEFORE SIGNING IN THE PRESENCE OF A NOTARY PUBLIC. THE NOTARY PUBLIC WILL EXECUTE THE ACKNOWLEDGMENT ON THE FOLLOWING PAGE. HOWEVER, IF YOU DO Order No.: 1925187 Owners Affidavit and Indemnity CA Page 2 of 3 Rev. 9/2021 NOT UNDERSTAND OR HAVE ANY QUESTIONS ABOUT THIS AFFIDAVIT, YOU SHOULD SEEK THE ASSISTANCE OF YOUR INDEPENDENT FINANCIAL AND/OR LEGAL ADVISOR BEFORE SIGNING. BP Dune Palms, LP, a California limited partnership By: Blackpoint Properties, LLC, a California limited liability company Its: General Partner By: Jeff Halbert, Manager A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached and not the truthfulness, accuracy, or validity of that document. State of California County of ) ss. Subscribed and sworn to (or affirmed) before me on this day of the basis of satisfactory evidence to be the person(s) who appeared before me. Notary Signature Order No.: 1925187 Owners Affidavit and Indemnity CA ,20 ,by , proved to me on Page 3 of 3 Rev. 9/2021 M o —0 CO CV CD C:c O O CD c w 1— c 69/9IZ Ad V 2IVd 44t O 3 � z Cd7 e••• N N N N N o o m m z M d 2 c c o 0 o o w o w w w w w w M O Ah/MH21H- - - - - —6Z 03 98'991. 3V 00' l 5Y £21Vd bb'S9l 69.991. 3V 00' l Z21Vd 69'991. 9E'S9l 3V00'I L21Vd 88'991. 0 9ZO-OZO 17170-0Z0 1.0' L64 3V HET 9� ti 2IVd 1.9'6617=1 l3NNVH3 n Yr 69/9lZ Wd 99'zoot_ SEOZ£ 031bMWa►O 1S Itirp 1/1A1 OV Z6.9 bye 1A3V91'll L£ X3 9Z0-OZO 17211 L09 091. 6'a` .3 09/6 261.1.00# L17/9 996Z00# cJ 9Zl X3 SZL Z8b 1/A3VV7178'L .J V Z8b T 0 0 0 N Lb'009 1A3VV17� Z X3 L9Z Ob o9'1.zI0 CO 1.9 N r Z2IVd O 0 0 0 Ol'b£ a Z£1• 96£91. 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Lbl � 1 CG O 0 N O H 0 0 N O LL0 11AI lLn1X3 61- OE M `d 101 _ 8.1 M _ _ 31.Z -9£-69N 0£ tia OH a2IVM1S3M a0° . tilt. 1777 1 0 Co CO 0 r c. o N N N N N N N ea W ea W ea W C9 CO CO CO CO CO CO CO CO CO CO c 1 w 2 PARCEL MAP NO. 18629 PM 113/54 - 55 PARCEL MAP NO. 31143 PM 216/69 - 71 CV N N m T a 1171 hl 1E8 A= or CO Ya M mY g iV � m 0 m 2 2 12 CO 5 Mamta Sahi M C7 CO • CO C6_a•U— Public Record Order: 1925187 Doc: RV:A 600-3 Page 2 of 2 Requested By: BobbieJo.Kopepasah, Printed: 1/20/2023 10:17 AM