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06 50905 Bermudas - Acquisition Agreement 11-30-18PARCEL N0.773-370-003 PROJECT: La Quinta Village Streets Project TITLE REPORT NO.: 6176504998 SELLER: 50-905 Bermudas, LLC, a California Limited Liability Company CITY OF LA QUINTA AGREEMENT FOR ACQUISITION OF REAL PROPERTY (ESCROW INSTRUCTIONS -TEMPORARY CONSTR UCTION EASEMENT) THIS AGREEMENT is entered into this :5U day of NO \ e m b Pi— , 2018, by and between the City of La Quinta (hereinafter called "Buyer"), 50-905 Bermudas, LLC, a California Limited Liability Company (hereinafter called "Seller"), for acquisition by Buyer of certain real property as hereinafter set forth. IT IS HEREBY MUTUALLY AGREED BETWEEN THE PARTIES AS FOLLOWS: l . AGREEMENT TO SELL AND PURCHASE. Seller agrees to sell, and Buyer agrees to purchase, a temporary construction easement interest (the "Property") over a portion of the property owned by Seller, upon the terms and for the consideration set forth in this Agreement and in the Temporary Construction Easement Deed attached hereto as Exhibit "1" and incorporated herein. 2. PURCHASE PRICE. The total purchase price, payable in cash through this transaction, shall be the sum of EIGHT THOUSAND ONE HUNDRED DOLLARS AND 1NO/100 ($8,100.00). 3. CONVEYANCE OF TITLE. To Seller's knowledge, the Property is free and clear of all recorded and unrecorded liens and encumbrances that could interfere with Buyer's intended use, and, therefore, to Seller's knowledge, Buyer shall quietly enjoy its rights in and to the Property without disturbance or inference by Seller or anyone claiming by, through or under Seller. Buyer, having reviewed the title report attached hereto as Exhibit "2," accepts the Property. 4. TITLE INSURANCE POLICY. Buyer may request a CLTA Standard Coverage Policy of Title Insurance in the amount of $8,100.00 issued by Lawyer's Title Company showing title to the Property vested in Buyer. Buyer agrees to pay the premium charged for said policy. 5. TRANSACTION. Buyer agrees to handle this transaction within its own office and in accordance with this Agreement. This Agreement constitutes the joint instructions between Buyer and Seller, and Buyer is empowered and will handle these instructions in accordance herewith. Buyer and Seller agree to do all acts necessary to close this transaction in the shortest possible time. 159/015610-0149 12972838.1 all/IS/18 Seller has executed and handed a Grant of Temporary Construction Easement Deed to Buyer, concurrently with this Agreement. As soon as possible after all requirements of this transaction have been met, Buyer is authorized to, and shall, record the executed Grant of Temporary Construction Easement, with Certificate of Acceptance attached. Buyer and Seller agree to deposit any additional instruments as may be necessary to complete this transaction. 6. BUYER IS AUTHORIZED TO, AND SIIALL: A. Deduct and pay, from funds due Seller, any amount necessary to satisfy any delinquent taxes due in any fiscal except the fiscal year in which this transaction closes, together with penalties and interest thereon and/or delinquent assessments or bonds except those which title is to be taken subject to, in accordance with the terms of this transaction. B. Disburse funds and deliver or have delivered recorded deeds) when Buyer and Seller have fulfilled conditions of this transaction. The term "close of transaction," if and where written in these instructions, shall mean the date necessary instruments of conveyance are recorded in the Office of the County Recorder. Recordation of instruments delivered through this transaction is authorized if necessary or proper in the issuance of said policy of title insurance. All time limits within which any matter herein specified is to be performed may be extended by mutual agreement of the Parties hereto. Any amendment of, or supplement to, any instructions must be in writing. 7. TIME IS OF THE ES SENCE. Time is of the essence in these instructions and this transaction is to close as soon as possible. If this transaction is not in condition to close within 30 days from date of these instructions, any party who then shall have fully complied with their instructions may, in writing, demand the return of his money or Property; but if none have complied, no demand for return thereof shall be recognized until five (5) days after Buyer shall have mailed copies of such demand to all other parties at their respective addresses shown in these instructions, and if any objections are raised within said five (5) day period, Buyer is authorized to hold all papers or documents until instructed by a court of competent jurisdiction or mutual instructions. If no demands are made, proceed with closing this transaction as soon as possible. 8. RENTAL AND OCCUPANCY. Seller warrants that there is currently no lease or other lawful possessory interest held by any party other than Seller in area included within the Property, or that any persons or entities with any such lawful possessory interest on Seller's property, have consented in writing to the transfer of the Property by Seller to Buyer, without additional compensation therefor from Buyer to such party. Seller shall indemnify Buyer and hold Buyer harmless from and against any claim for any proceeds of the Property being conveyed hereunder by any other party, including any claim that any such party is entitled to a portion of the proceeds paid by Buyer pursuant to this Agreement. 159/015610-0149 12972838.1 allll5/18 9. HAZARDOUS SUBSTANCES DISCLOSURE. To Seller's knowledge, and without investigation, Seller warrants and represents to Buyer that there are no hazardous or toxic material or substances located on or beneath the Property. 10. NOTICE OF TAX WITHHOLDING REQUIREMENTS. It is further understood and agreed by Buyer and Seller that closing of this escrow is subject to and contingent upon Seller executing a "Transferor's Affidavit of Non -Foreign Status" and California Form 593-C (Individual Sellers) or 593-W (Real Estate Withholding Exemption Certificate and Waiver Request for Non -Individual Sellers) and depositing a copy of same into escrow. 11. NO COST TO SELLER. Buyer shall bear all costs and expenses in connection with Buyer's and/or its assignees' purchase and use of the Property. 12. MANAGEMENT OF WORK AREAS AND ACTIVITIES. Buyer shall perform its activities on the Property in a safe manner and in accordance with all applicable governmental and other laws, rules and regulations. No "hazardous or toxic wastes, substances or materials," as such terms are or may from time to time be defined by Federal, state, county or municipal laws, ordinances, orders or regulations applicable to the use and enjoyment of the Property (which regulated materials are collectively hereinafter referred to as "Hazardous Materials") shall be placed or used or allowed to be placed or used on the Property by Buyer or any of its employees, agents and contractors. Buyer shall not suffer or permit to be enforced against the Property, or any part thereof, any mechanicsmaterialmen's, contractors' or subcontractor's liens or any claim for damage arising from the work performed by Buyer or any of its employees, agents or contractors. At the expiration of the temporary construction easement or the expiration or termination of Buyer's temporary rights under this Agreement, Buyer shall restore the Property to the same condition that existed prior to Buyer's operations, and Buyer shall remove all equipment and construction materials. Buyer shall perform or cause its work to be performed in a manner so as not to unreasonably interfere with the remaining property of Seller. 13. LR.S. FORM 11W-9". It is further understood and agreed by Seller that closing of this transaction is subject to and contingent upon Seller executing an Internal Revenue Service Form "W-9" and/or 1099-S form and depositing same with Buyer. 14. EMINENT DOMAIN ACTION. Seller hereby acknowledges that Buyer may file, or has filed, an eminent domain action regarding the Property, naming the owner of the real property, and others as necessary defendants, and may apply for an Order of Prejudgment Possession. Buyer and Seller acknowledge the property is being acquired by Buyer as part of the exercise of its Eminent Domain activities. Upon the close of transaction, Seller hereby consents to the dismissal of any action filed by Buyer for the condemnation of said property and other interests and waives any claim for costs or attorneys' fees or any compensation whatsoever other than the Purchase Price as provided hereunder, as a result of such dismissal. 15. NO WAIVER. No delay or omission by either party hereto in exercising any right or power accruing upon the compliance or failure of performance by the other party hereto under the provisions of this Agreement shall impair any such right or power or be construed to be a waiver thereof. A waiver by either party hereto of a breach of any of the covenants, conditions or agreements hereof to be 159/015610-0149 12972838.1 all/I5/18 performed by the other party shall not be construed as a waiver of any succeeding breach of the same or other covenants, agreements, restrictions or conditions hereof 16. MERGER OF PRIOR AGREEMENTS AND UNDERSTANDINGS. This Agreement and other documents incorporated herein by reference contain the entire understanding between the Parties relating to the transaction contemplated hereby and all prior or contemporaneous agreements, understandings, representations and statements, oral or written, are merged herein and shall be of no further force or effect. Neither parry relies upon any warranty or representation not contained in this Agreement. This Agreement may only be amended by a written instrument, signed by both parties. 17. FULL AND COMPLETE SETTLEMENT. Seller hereby acknowledges that the compensation paid by Buyer to Seller as set forth in Paragraph 2 of this Agreement constitutes, except as otherwise specifically provided herein, the full and complete settlement of any and all claims against Buyer, by reason of Buyer's acquisition of the Property, and Buyer's construction and use of the Project as proposed. Except as otherwise provided herein, Seller waives any claim which it has or may have for any payment or compensation for any damage to persons or property arising out of Buyer's acquisition of the Property, all investigations and pre -condemnation activity undertaken pursuant thereto, and the construction and use of the Project in the manner proposed. This waiver includes, but is not limited to claims for just compensation for the property interest acquired, claims for severance or other damage, unreasonable delay or pre -condemnation conduct, impairment of access abutters rights, loss of business goodwill, any continuing rights under Code of Civil Procedure section 1245,245, and relocation benefits to which Seller may be entitled, and any and all other claim that Seller may have, whether or not specifically mentioned here, relating directly or indirectly to the acquisition by Buyer of the Property. This waiver is intended by the parties to be a full and complete waiver, notwithstanding any later -discovered information and Seller waives any rights to any protections under Civil Code section 1542, which provides as follows: A GENERAL RELEASE DOES NOT EXTEND TO CLAIMS WHICH THE CREDITOR DOES NOT KNOW OR SUSPECT TO EXIST 1N HIS OR HER FAVOR AT THE TIME OF EXECUTING THE RELEASE, WHICH IF KNOWN BY HIM OR HER MUST HAVE MATERIALLY AFFECTED HIS OR HER SETTLEMENT WITH THE DEBTOR. This waiver is intended to be a full and final release of any and all such claims to which it pertains, and Seller warrants to the Buyer that it has had the opportunity to consult with legal counsel regarding the provisions of California Civil Code Section 1542, and the consequences and implications of waiving operation of this statute, and knowingly and voluntarily waives it. Sellers' Initials: 18. COUNTERPARTS, This Agreement may be executed in counterparts, each of which so executed shall, irrespective of the date of its execution and delivery, be deemed an original, and all such counterparts together shall constitute one and the same instrument. 19. AUTHORITY. This instrument shall be binding on and shall inure to the benefit of the heirs, executors, administrators, successors, and assigns of the Buyer and Seller. The Parties upon whose benefit the signature appears below warrant, each to the other, that the person whose signature 159/015610-0149 12972838.1 all/15/18 appears below has the legal authority to bind the party on whose behalf the signature appears to the terms of this Agreement, and that by doing so such Party is not in breach of any other contract or agreement. 20. SEVERABII,ITY. The provisions of this Agreement are severable, and if any portion is held invalid or otherwise unenforceable, the Parties intend that all other provisions shall remain in full force and effect. 21. ATTORNEYS' FEES. In the event of any controversy, claim or dispute relating to this instrument or any breach thereof, the prevailing party shall be entitled to recover its attorney(s) fees, costs, and expenses, whether or not the matter is prosecuted to final judgment. Attorney(s) fees shall include all costs, expert witness fees, and all other reasonable expenses. 22. EARLY POSSESSION AND USE OF EASEMENT AREAS: In the event that this transaction is not in a condition to close at such time that Buyer requires use of the property for its street improvement project, permission is hereby granted Buyer to enter upon the portion of Seller's land described in Exhibit 1 attached hereto for the purpose of constructing or improving the public streets and adjoining areas and accomplishing all necessary incidents thereto. It is understood that this permission is not a waiver in any way of the right of compensation for such land or of any remedy authorized by law to secure payment therefor. As is demonstrated in this Agreement, it is the intent of the Buyer to pay just compensation to the Seller for permission to enter the subject property and to construct the project. This permission is granted in consideration of the location, improvement and construction of such street improvements and incidents thereto, which it is understood is required by the Buyer, with the understanding that you will hereafter without unnecessary delay, complete the terms of this Agreement. In the event that Seller cannot complete its obligation under this Agreement, and cannot convey the easements that are the subject of same, Buyer agrees to commence eminent domain proceedings, including a deposit of funds to support an Order for Possession, to have said conveyance completed through eminent domain proceedings. Section 1245.235 of the Code of Civil Procedure requires the Buyer to give each person whose property is to be acquired by eminent domain notice and a reasonable opportunity to appear before the California Transportation Commission and be heard on the matters referred to in Section 1240.030 of the Code of Civil Procedure, which provides: The power of eminent domain may be exercised to acquire property for a proposed project only if all of the following are established: (1) The public interest and necessity require the project. (2) The project is planned or located in the manner that will be most compatible with the greatest public good and the least private injury. (3) The property sought to be acquired is necessary for the project. 159/015610-0149 12972838.1 alll15/18 (4) The offer required by Section 7267.2 of the Government Code has been made to the owner or others of record. (If an offer has not been made, an appraisal will be prepared as soon as practicable and an offer made of the full amount of such appraisal.) By granting this irrevocable right to possession and use of the parcels to Buyer, Seller agrees to the following: (1) Seller specifically waives the notice required by Code of Civil Procedure Section 1245.235 of the hearing of the matter referred to in Code of Civil Procedure Section 1240.030 and the adoption of the resolution of necessity by the Buyer authorizing the taking of the property described in Exhibit 1 ; (2) Seller shall not object to the filing of an eminent domain proceeding to acquire the property described in Exhibit I ; and (3) in any eminent domain action filed by City to acquire the property described in Exhibit 1, Seller shall not challenge City's right to take such property, and the only issue shall be the amount of just compensation for the property. It is understood that the City will pay interest from the date possession is taken on the just compensation paid by the Buyer. The rate of interest will be the rate of earnings of the Surplus Money Investment Fund and computation will be in accordance with Section 1268.350 of the Code of Civil Procedure. Interest will be computed to and including the date of deposit of compensation. IN WITNESS WHEREOF, the Parties hereto have executed this Agreement the day and year first set forth hereinabove. Date: ATTEST: By: Monika Radev�, CiTy APPROVED AS TO FORM: MORGA�ALLAGHER Assistan ity Attorney City of La Quinta, California I dl5/l�' SELLER: 50-905 Bermudas, LLC, a California Limited Liability Company B . BUYER: CITY OF LA QUINTA, a California municipal c City Manager 159/015610-0149 12972838.1 all/15/18 EXHIBIT 1 RECORDING REQUESTED BY AND WHEN RECORDED MAIL TO: City of La Quinta 78495 Calle Tampico La Quinta, CA 92253 Attention: City Clerk Exempt from Recording Fee Pursuant to Government Code Section 6103 APN: 773-370-003 FULL [ ] PORTION [X] Exempt from Documentary Transfer Tax Pursuant to R&T Code 9 11922 (Space above this line for Recorder's use) GRANT OF TEMPORARY CONSTRUCTION EASEMENT For valuable consideration, receipt of which is hereby acknowledged 50-905 Bermudas, LLC, a California Limited Liability Company, OWNER, ("Grantor"), hereby grants to the CITY OF LA QUINTA, a municipal corporation ("City") a temporary construction easement (the " Temporary Construction Easement") in, on, over, along, through, upon, under and across that certain real property, described on Exhibit "A" and depicted on Exhibit "B" attached hereto and incorporated herein by this reference (the "Temporary Construction Easement Area"), for the following purposes: A nonexclusive easement which permits City, its officers, agents, employees, and contractors, to enter upon, occupy, and pass over the Temporary Construction Easement Area, consisting of approximately 2,243 square feet, as reasonably necessary for all purposes incidental to the La Quinta Village Diet Streets Project (the "Project"). This Temporary Construction Easement shall include the right to perform within the Temporary Construction Easement Area, any necessary excavation; grading; earth fill; compaction; installation of concrete forms; landscaping; irrigation; utility; and sign relocation; accommodation of private drainage facilities; and deposit of tools, equipment, and material for all such necessary activities which are reasonably incidental to the work being performed on Temporary Construction Easement Area in connection with the approved plans for the Project; provided, however, this Temporary Construction Easement shall not include the right to store any materials or park any vehicles which are not incidental to the work to be performed on site in connection with the Project, nor to block vehicular access to the larger parcel of property of which the Temporary Construction Easement Area is a part ("Grantor's Property"), nor exercise the uses of the easement outside of the Temporary Construction Easement Area. Such incidental activities shall include, but not be limited to, utilizing the Temporary Construction Easement Area for adjusting grade differentials between the planned Project and the adjoining real property and/or matching existing concrete and/or asphalt paved areas, and/or natural grade areas, 159/015610-0149 129728381 a11115/18 providing standard construction site control measures as may be reasonably necessary to allow the work which will be done pursuant to this Temporary Construction Easement in a safe and legal manner, and such work as may pertain to on -site improvements to render the Temporary Construction Easement Area or the larger parcel to which it pertains in the same functional condition as reasonably practicable to the condition before the Project, consistent with the Project to be constructed. To the extent legally permitted improvements are constructed on the Temporary Construction Easement Area, City shall protect or restore all improvements thereon. City agrees to provide Grantor with a written forty-eight (48) hour notice prior to occupying the Temporary Construction Easement Area. [Signatures on next page] 159/015610-0149 12972838.1 allll5/l8 IN WITNESS WHEREOF, the Grantor and City hereto have caused this Easement Deed to be executed as of this day of , 2018. GRANTOR: 50-905 Bermudas, LLC, a California Limited Liability Company By: EXHIBIT ONLY ItS: CITY: CITY OF LA QUINTA, a California municipal corporation By: ATTEST: Monika Radeva, City Clerk APPROVED AS TO FORM: By: William H. Ihrke, City Attorney Frank J. Spevacek, City Manager ls9lols6lo-ola9 12972838.1 a1U15l18 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 Riverside ) On , 2018, before me, ,Notary Public, personally appeared who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. WITNESS my hand and official seal. Signature (Seal) 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 Riverside ) On , 2018, before me, ,Notary Public, personally appeared who proved to me on the basis of satisfactory evidence to be the persons) whose names) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. WITNESS my hand and official seal. Signature, (Seal) 159/015610-0149 12972838.1 allll5/18 lWXHIBIT "fm% LEGAL C�ESGRIPTION 7EIUIP{?RAR1' C�NS7RU�T1()N EA�EMINT API 773��7�-OU3 - BERMUQAS IN THE CITY OF LA QUINTA, COUIJTY OF RIVERSIDE, STATE OI= CALIFORNIA, BEING A PORTION OF PARCEL 3 OF PARCEL MAP NO. 29886, A$ SHOWN BY MAP UN FILL" IN BOOK 1903 AT PAGES 29 THORUGH 30, OF PARCEL MAPS, OFFICIAL RECORDS OF SAID COUNTY, LOCATED IN THE NORTHEAST QUARTER OF SECTION 1, TOWNSHIP 6 SOUTH, RANGE 6 EAST, SAN BERNARDINO MERIDIAN, MORE PARTICULARLY DESCRIBED AS FOLLOWS; E�EGINNING AT THE MAST SOUTHEASTEE�LY CORIJER OF SAId PARCEL 3; THi=NOE NORTH �19u57'�6" WE5T, AI�ONf� TH€SOUTHERLY LINE t�>= SAIC3 PARCEL 3, A DISTANCE OF 18,15 FEET; THENCE SOUTH 44'19'1C�" WEST, ALONG TE-1f= SOUTHEASTERLY DINE OF SAIE� PARCEL 3, A DISTANCE OF 32.41 FEET TO THE BEGINNING OF A NON4ANGENT C URVE., CONCAVE SOUTHERLY, HAVING A RADIUS OF 1250,00 FEET, A RADIAL GENE TO SAID POIN`r BEARS NORTH 00001'28" EAST, THENCE WESTERLY ALONG Tl-IF AMC OE= SAID CURVE AND THE SOUTHERLY LINE OF RAID PARCEL 3, THROUGH A UENTRAL ANGLE OF u6°0802, AN ARC DISTANCE OF 133.82 FEET, A RADIAL LINE TO SAID POINT BEARS NORTH 06006'34" WEST; THENCE NON -TANGENT TO SAID CURVE NORTH 04°24'19" WEST, A DISTANCE OF 5,00 FEET TO THE BEGINNING OF A NON -TANGENT CURVES AND A POINT ON A CURVE PARALLEL WITH AND 5.00 FEET DISTANT FROM THE SOUTHERLY LINE OF PARCEL 3, CONCAVE SOUTHERLY, HAVING A RADIUS OF 1255.00 FEET, A RADIAL LINE TO SAID POINT BEARS NORTH 06006'09" WEST, THENCE EASTERLY ALONG TI•iCr ARC OF SAID CURVE PARALLEL WITt-i THE SOU I'HCFtLY LItJE OF SAId PARCEL 3, THROEJGH A CENTRAL ANGLE OF 06"t1'Sp", AN ARC DISTANCE OF 132.09 FEET, A RADIAL LINE TO SAID POINT BEARS NORTH 00°04'19" WEST; THENCE NONtTANOENTTO SAID CURVE NORTH 44°19'10" EAST, PARALLEL WITH AND 5.00 FEET [7ISTANT FI�OClI `t'HI= SOUTHEASTERLY LINE OF SAID PARCEL 3, A DISTANCE OF 31.36 FEET; THENCE NORTH 00°0213" EAST, PARALLEL WITH AND 21.00 FEET DISTANT FROM TH1= TF�E EASTERLY LINE OF SAID PARCEL 3, A DISTANCE OF 63.62 FEET; Is9/o�s6io-ola9 12972838.1 all/Is/18 LEGAL i3ESCRIPTION 7EMPQRARY CtiNSTRUCTION EASEMENT APN 773d370-003 - BERMUDAS THENCE SOUTH 89°57'47" EAST, A D15TANCE C}F 21,Oi] FEET, TO TWE EASTERLY LINE OF SAID PARCEL 3, THENCE SC?UTH t)0°Q2'13" WEST, ALONG THE EASTER�.Y LINE OF SAID PARCEL 3, A DISTANCE OF 67.86 FEET, TO THE POINT OF BEGINNING, SU®JECT TQ E}CISTING EASEMENT'S, COVENANTS, RIGHTS ANI� RIGMTSrOF- WAY OF RECORD. CQNTAINING �,�4� SQUARE FEET OR tl.tl51 AGRES MORE OR LESS. AS DEPICTED ON EXHiBiT "8" ATTAGHED HERETO ANQ MADE A PART HEREOF. PREI�ARED EY OR UN'QER THE DIRECTION OF. CHARM=S R. WARRtS DATED. ]s9/ols�lo-ola9 12972838.1 all/Is/18 S'LY L!N@ PAfiCEL 3 to itil 1 il0if TEMPORARY CONSTRUCTION EASEMENT APN 773�370�003 - BERMUDAS SEC, 1, T.6S., R.6E., SBM ESMT. IN FAVOR OF VERIZON CALIFORNIA, ►NC. FOR PUBLIC UTILfi1' PURPOSES PER INST. NO. 405646t R C. 10/12/2001. O.R. (ESIAT. EXTENDS THREE FEET OF EACH SIDE OF THE CENTERLINE OF THE ACTUAL LOCATION OF FACILITIES - NOT PLOTTABLE) PARCEL � PARCEL MAP NO. 29886 PM 199/29-30 APN 773�3701 003 TOE AREA ,2i+3 5(J. "I 0.051 AG. N o�•24'10' w s.qQ' N'LY R/w LINE-� 'col I20' SCALE 1'=60' E'LY LINE PARCEL 3 21,00' s3.ez' T, N ¢4 19' 10" E X 1 31,36"V'sN. 32' MAST LY COR. PAR. � GUpVE QATA N0. pELTA RADWS LENGTH C1 0608OY 1250,G0 133.82 C2 06 of SITE 1255600 132.Q9' C'.dlvSULMQ, SURVEYING sHEE( 1 ilF 159/015610-0149 12972838.1 all/15/18 EXHIBIT 2 Preliminary Title Report 159/015610-0149 12972838.1 all/IS/18 n La prs ritle MSA Consulting, Inc. 34200 Bob Hope Drive Rancho Mirage, CA 92270 Attn: LUKE BEVERLY Your Reference No: 2396.001 OmniMeans Property Address: Apn 773-370-003 Lawyers Title Company 3480 Vine Street Suite 300 Riverside, CA 92507 Phone: (951) 774-0825 Fax: ( ) Title Officer: Barbara Northrup --So email: Barbara. northrup@ltic.com Phone No.: (951) 774-0825 Fax No.: File No.: 617650498 UPDATED PRELIMINARY REPORT Dated as of May 15, 2018 at 7:30 a.m. In response to the application fora policy of title insurance referenced herein, Lawyers 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 herein or not excluded from coverage pursuant to the printed Schedules, Conditions and Stipulations or Conditions 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 Attachment One. 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. Limitation 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 Attachment One. Copies of the policy forms should be read. They are available from the office which issued this report. The policy(s) of title insurance to be issued hereunder will be policy(s) of Commonwealth Land Title Insurance Company. Please read the exceptions shown or referred to below and the exceptions and exclusions set forth in Attachment One 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. CLTA Preliminary Report Form —Modified (11-17-06) Page 1 File No: 617650498 SCHEDULE A The form of policy of title insurance contemplated by this report is: Preliminary Report Only 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: 50-90550-905 Bermudas, LLC, a California Limited Liability Company The land referred to herein is situated in the County of Riverside, State of California, and is described as follows: SEE EXHIBIT A" ATTACHED HERETO AND MADE A PART HEREOF CLTA Preliminary Report Form -Modified (11-17-06) Page 2 File No: 617650498 EXHIBIT A" All that certain real property situated in the County of Riverside, State of California, described as follows: Parcel 3 of Parcel Map 29886, in the City of La Quinta, County of Riverside, State of California, as shown by Map on file in Book 199, Pages 29 and 30 of Parcel Maps, in the Office of the County Recorder of Riverside County, California. Excepting therefrom all oil and mineral rights, oil, minerals, natural gas and other hydrocarbons by whatsoever name know, geothermal resources, metalliferous or other ores, and all products derived from any of the foregoing that may be within or under the property, and all rights associated with the foregoing, together with the perpetual right of drilling, mining, exploring and operating therefor and storing in and removing the same from said land or any other land, including the right to whipstock or directionally drill and mine from lands other that the property, oil or gas wells, tunnels and shafts into, through or across the subsurface of the property and to bottom such whipstocked or directionally drilled wells, tunnels and shafts under and beneath or beyond the exterior limits thereof, and to redrill, retunnel, equip, maintain, repair, deepen and operate any such wells or mines without, however, the right to drill, mine, store, explore and operate through the surface or the upper 500 feet of the subsurface of the property, as reserved in the deed recorded August 5, 2005 as Instrument No, 0631950, Official Records. Assessor's Parcel Number: 773-370-003 CLTA Preliminary Report Form -Modified (11-17-06) Page 3 File No: 617650498 SCHEDULE B At the date hereof Exceptions to coverage in addition to the printed exceptions and exclusions in said policy form would be as follows: A. Property taxes, which are a lien not yet due and payable, including any assessments collected with taxes to be levied for the fiscal year 2018-2019. B. The lien of supplemental or escaped assessments of property taxes, if any, made pursuant to the provisions of Chapter 3.5 (commencing with Section 75) or Part 2, Chapter 3, Articles 3 and 4, respectively, of the Revenue and Taxation Code of the State of California as a result of the transfer of title to the vestee named in Schedule A; or as a result of changes in ownership or new construction occurring prior to date of policy. C. Any liens or other assessments, bonds, or special district liens including without limitation, Community Facility Districts, that arise by reason of any local, City, Municipal or County Project or Special District. 1. 2. 3 4. Water rights, claims or title to water, whether or not disclosed by the public records. The ownership of said Land does not include rights of access to or from the street, highway, or freeway abutting said Land, such rights having been relinquished by said Parcel Map 29886 Affects: Calle Tampico Easements) for the purposes) shown below and rights incidental thereto as set forth in a document: In favor of: Coachella Valley County Water District Purpose: underground pipeline Recording Date: September 10, 2001 Recording No: as Instrument No. 2001-437591 of Official Records Affects: Portion of said land Easements) for the purposes) shown below and rights incidental thereto as set forth in a document: In favor of: Verizon California, Inc., a California Corporation Purpose: Public utility Recording Date: October 12, 2001 Recording No: as Instrument No. 2001-496648 of Official Records Affects; Portion of said land 5. Matters contained in that certain document Entitled: Commercial domestic water and/or sanitation Dated: June 21, 2002 Executed by: Coachella Valley County Water District and Landaq, Inc Recording Date: July 25, 2002 Recording No: as Instrument No. 2002-407219 of Official Records Reference is hereby made to said document for full particulars. CLTA Preliminary Report Form —Modified (11-17-06) Page 4 File No: 617650498 6. Easement(s) for the purposes) shown below and rights incidental thereto as set forth in a document: In favor of: Apartments at La Quinta Village, Limited Partnership Purpose: underground sewer line and water line Recording Date: October 24, 2002 Recording No: as Instrument No. 2002-600847 of Official Records Affects: Portion of said land 7. Covenants, conditions and restrictions but omitting any covenants or restrictions, if any, including but not limited to those based upon race, color, religion, sex, sexual orientation, familial status, marital status, disability, handicap, national origin, citizenship, immigration status, primary language, ancestry, source of income, gender, gender identity, gender expression, medical condition or genetic information, as set forth in applicable state or federal laws, except to the extent that said covenant or restriction is permitted by applicable law, as set forth in the document Recording Date: August 5, 2005 Recording No: as Instrument No. 2005-631950 of Official Records 8. Intentionally deleted. 9. Intentionally deleted. 10. Intentionally deleted. 11. The Land described herein is included within a project area of the Redevelopment Agency shown below, and that proceedings for the redevelopment of said project have been instituted under the Redevelopment Law (such redevelopment to proceed only after the adoption of the Redevelopment Plan) as disclosed by a document. Redevelopment Agency: La Quinta Redevelopment Agency Recording Date: October 4, 2007 Recording No: as Instrument No. 2007-619749 of Official Records 12. A deed of trust to secure an indebtedness in the amount shown below, Amount: $2,168,267.00 Dated: August 11, 2017 Trustor/Grantor: 50-905 Bermudas, LLC, a California limited liability Company Trustee: Fidelity National Title Beneficiary: First Republic Bank can No.: 27-591156-5 Recording Date: August 29, 2017 Recording No: as Instrument No. 2017-357106 of Official Records 13. An assignment of all moneys due, or to become due as rental or otherwise from said Land, to secure payment of an indebtedness, shown below and upon the terms and conditions therein Amount: $2,168,267.00 Assigned to: First Republic Bank Recording Date: August 29, 2017 Recording No: as Instrument No. 2017-357107 of Official Records CLTA Preliminary Report Form -Modified (11-17-06) Page 5 File No: 617650498 14. A financing statement as follows: Debtor: 50-905 Bermudas, LLC, a California limited liability Company Secured Party: First Republic Bank Recording Date: September 6, 2017 Recording No: as Instrument No. 2017-368974 of Official Records 15. Matters which may be disclosed by an inspection and/or by a correct ALTA/AGSM Land Title Survey of said Land that is satisfactory to the Company, and/or by inquiry of the parties in possession thereof. 16. 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. 17. Any easements not disclosed by the public records as to matters affecting title to real property, whether or not said easements are visible and apparent. 18. Discrepancies, conflicts in boundary lines, shortage in area, encroachments, or any other matters which a correct survey would disclose and which are not shown by the public records. END OF SCHEDULE B EXCEPTIONS PLEASE REFER TO THE NOTES AND REQUIREMENTS SECTION" WHICH FOLLOWS FOR INFORMATION NECESSARY TO COMPLETE THIS TRANSACTION CLTA Preliminary Report Form -Modified (11-17-06) Page 6 File No: 617650498 REQUIREMENTS SECTION: Req. No. 1: The Company will require the following documents for review prior to the issuance of any title insurance predicated upon a conveyance or encumbrance from the entity named below: Limited Liability Company: 50-905 Bermudas, LLC, a California limited liability Company a) A copy of its operating agreement, if any, and any and all amendments, supplements and/or modifications thereto, certified by the appropriate manager or member b) If a domestic Limited Liability Company, a copy of its Articles of Organization and all amendments thereto with the appropriate filing stamps c) If the Limited Liability Company is member -managed, a full and complete current list of members certified by the appropriate manager or member d) A current dated certificate of good standing from the proper governmental authority of the state in which the entity was created e) If less than all members, or managers, as appropriate, will be executing the closing documents, furnish evidence of the authority of those signing. The Company reserves the right to add additional items or make further requirements after review of the requested documentation. CLTA Preliminary Report Form —Modified (11-17-06) Page 7 File No: 617650498 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: 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 deposited with the company by wire transfer may be disbursed upon receipt. Funds deposited with the company via cashier's check or teller's check drawn on a California based bank may be disbursed on the next business day after the day of deposit. If funds are deposited with the company by other methods, recording and/or disbursement may be delayed. All escrow and sub -escrow funds received by the company will be deposited with other escrow funds in one or more non -interest bearing escrow accounts of the company in a financial institution selected by the company. The company 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 such financial institution, and the company 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 the company. Those benefits may include, without limitation, credits allowed by such financial institution on loans to the company or its parent company and earnings on investments made with the proceeds of such loans, accounting, reporting and other services and products of such financial institution. Such benefits shall be deemed additional compensation of the company for its services in connection with the escrow or sub -escrow. For wiring Instructions please contact your Title Officer or Title Company Escrow officer. Note No. 3: Lawyers Title is a division of Commonwealth Land Title Insurance Company. The insurer in policies of title insurance, when issued in this transaction, will be Commonwealth Land Title Insurance Company. Note No. 4: Notice: Please be aware that due to the conflict between federal and state laws concerning the cultivation distribution, manufacture or sale of marijuana, the Company is not able to close or insure any transaction involving Land that is associated with these activities. Note No. 5: Pursuant to Government Code Section 27388.1, as amended and effective as of 1-1-2018, a Documentary Transfer Tax (DTT) Affidavit may be required to be completed and submitted with each document when DTT is being paid or when an exemption is being claimed from paying the tax. If a governmental agency is a party to the document, the form will not be required. DDT Affidavits may be available at a Tax Assessor -County Clerk -Recorder. Note No. 6: None of the items shown in this report will cause the Company to decline to attach CLTA Endorsement Form 100 to an ALTA Loan Policy, when issued. Note No. 7: The following information will be included in the CLTA Form 116 or ALTA Form 22-06 Endorsement to be issued pursuant to this order: There is located on said land: COMMERCIAL PROPERTY Known as: 50905 Avenida Bermudas, City of La Quinta, California Note No. 8: There are no conveyances affecting said land recorded within 24 months of the date of this report. CLTA Preliminary Report Form -Modified (11-17-06) �ID File No: 617650498 Note No. 9: THIS COMPANY REQUIRES CURRENT BENEFICIARY DEMANDS PRIOR TO CLOSING. If the demand is expired and a current demand cannot be obtained, our requirements will be as follows: (a) If this Company accepts a verbal update on the demand, we may hold an amount equal to one monthly mortgage payment. This hold will be in addition to the verbal hold the lender may have stipulated. (b) If this Company cannot obtain a verbal update on the demand, we will either pay off the expired demand, or wait for the amended demand, at our discretion. (c) All payoff figures are verified at closing. If the customer's last payment was made within 15 days of closing, our Payoff Department may hold one month's payment to insure check has cleared the bank (unless a copy of the cancelled check is provided, in which case there will be no hold). Note No. 10: Property taxes, including any personal property taxes and any assessments collected with taxes, are paid. For proration purposes the amounts were: Tax Identification No.: 773-370-003-6 Fiscal Year: 2017-2018 15t Installment: $22,326.87 2"d Installment: $22,326.87 Exemption: $-0- Code Area: 020-021 Processor: SAH / slc Date Typed: October 25, 2017 /May 22, 2018 CLTA Preliminary Report Form —Modified (11-17-06) Page 9 File No: 617650498 Attachment One (Revised 05.06.16) CALIFORNIA LAND TITLE ASSOCIATION 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: 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. File No: 617650498 EXCEPTIONS FROM COVERAGE - SCHEDULE B, PART I This policy does not insure against loss or damage (and the Company will not pay costs, attorneys' fees or expenses) which arise by reason of: 1. Taxes or assessments which are not shown as existing liens by the records of any taxing authority that levies taxes or assessments on real property or by the public records. Proceedings by a public agency which may result in taxes or assessments, or notices of such proceedings, whether or not shown by the records of such agency or by the public records. 2. Any facts, rights, interests, or claims which are not shown by the public records but which could be ascertained by an inspection of the land or which may be asserted by persons in possession thereof. 3. Easements, liens or encumbrances, or claims thereof, not shown by the public records. 4. Discrepancies, conflicts in boundary lines, shortage in area, encroachments, or any other facts which a correct survey would disclose, and which are not shown by the public records. 5. (a) Unpatented mining claims; (b) reservations or exceptions in patents or in Acts authorizing the issuance thereof; (c) water rights, claims or title to water, whether or not the matters excepted under (a), (b) or (c) are shown by the public records. 6. Any lien or right to a lien for services, labor or material not shown by the public records. CLTA HOMEOWNER'S POLICY OF TITLE INSURANCE (12.02-13) ALTA HOMEOWNER'S POLICY OF TITLE INSURANCE 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: CLTA Preliminary Report Form -Modified (11-17-06) Page 11 File No: 617650498 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: • 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: Our Maximum Dollar Your Deductible Amount Limit of Liability Covered Risk 16: 1.00% of Policy Amount Shown in Schedule A or $2,500.00 $10,000.00 (whichever is less) Covered Risk 18: 1.00% of Policy Amount Shown in Schedule A or $5,000.00 $ 25,000.00 (whichever is less) Covered Risk 19: 1.00% of Policy Amount Shown in Schedule A or $5,000.00 $ 25,000.00 (whichever is less) Covered Risk 21: 1.00% of Policy Amount Shown in Schedule A or $2,500,00 $ 5,000.00 (whichever is less) 2006 ALTA LOAN POLICY (06.17.06) EXCLUSIONS FROM COVERAGE The following matters are expressly excluded from the coverage of this policy, and the Company will not pay loss or damage, costs, attorneys' fees, or expenses that arise by reason of: 1. (a) Any law, ordinance, permit, or governmental regulation (including those relating to building and zoning) restricting, regulating, prohibiting, or relating to (i) the occupancy, use, or enjoyment of the Land; (ii) the character, dimensions, or location of any improvement erected on the Land; (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; CLTA Preliminary Report Form -Modified (11-17-06) Page 12 File No: 617650498 (b) not Known to the Company, not recorded in the Public Records at Date of Policy, but Known to the Insured Claimant and not disclosed in writing to the Company by the Insured Claimant prior to the date the Insured Claimant became an Insured under this policy; (c) resulting in no loss or damage to the Insured Claimant; (d) attaching or created subsequent to Date of Policy (however, this does not modify or limit the coverage provided under Covered Risk 11, 13 or 14); or (e) resulting in loss or damage that would not have been sustained if the Insured Claimant had paid value for the Insured Mortgage, 4, Unenforceability of the lien of the Insured Mortgage because of the inability or failure of an Insured to comply with applicable doing -business laws of the state where the Land is situated. 5. Invalidity or unenforceability in whole or in part of the lien of the Insured Mortgage that arises out of the transaction evidenced by the Insured Mortgage and is based upon usury or any consumer credit protection or truth -in -lending law. 6. Any claim, by reason of the operation of federal bankruptcy, state insolvency, or similar creditors' rights laws, that the transaction creating the lien of the Insured Mortgage, is (a) a fraudulent conveyance or fraudulent transfer, or (b) a preferential transfer for any reason not stated in Covered Risk 13(b) of this policy. 7. Any lien on the Title for real estate taxes or assessments imposed by governmental authority and created or attaching between Date of Policy and the date of recording of the Insured Mortgage in the Public Records. This Exclusion does not modify or limit the coverage provided under Covered Risk 11(b). The above policy form may be issued to afford either Standard Coverage or Extended Coverage. In addition to the above Exclusions from Coverage, the Exceptions from Coverage in a Standard Coverage policy will also include the following Exceptions from Coverage: EXCEPTIONS FROM COVERAGE [Except as provided in Schedule B Part II,[ t[or T]his policy does not insure against loss or damage, and the Company will not pay costs, attorneys' fees or expenses, that arise by reason of: [PART I [The above policy form may be issued to afford either Standard Coverage or Extended Coverage. In addition to the above Exclusions from Coverage, the Exceptions from Coverage in a Standard Coverage policy will also include the following Exceptions from Coverage: 1. (a) Taxes or assessments that are not shown as existing liens by the records of any taxing authority that levies taxes or assessments on real property or by the Public Records; (b) proceedings by a public agency that may result in taxes or assessments, or notices of such proceedings, whether or not shown by the records of such agency or by the Public Records. 2. Any facts, rights, interests, or claims that are not shown by the Public Records but that could be ascertained by an inspection of the Land or that may be asserted by persons in possession of the Land. 3. Easements, liens or encumbrances, or claims thereof, not shown by the Public Records. 4. Any encroachment, encumbrance, violation, variation, or adverse circumstance affecting the Title that would be disclosed by an accurate and complete land survey of the Land and not shown by the Public Records. 5. (a) Unpatented mining claims; (b) reservations or exceptions in patents or in Acts authorizing the issuance thereof; (c) water rights, claims or title to water, whether or not the matters excepted under (a), (b), or (c) are shown by the Public Records. 6. Any lien or right to a lien for services, labor or material not shown by the Public Records. ] PART II CLTA Preliminary Report Form - Modified (11-17-06) Page 13 File No: 617650498 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 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: CLTA Preliminary Report Form -Modified (11-17-06) Page 14 File No: 617650498 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 —ASSESSMENTS PRIORITY (04.02-15) 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; (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, 163 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. CLTA Preliminary Report Form -Modified (11-17-06) Page 15 File No: 61765iJ498 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. CLTA Preliminary Report Form -Modified (11-17-06) Page 16 LaWVMOfitle= IV File No: 617650498 Lawyers Title Company 3480 Vine Street Suite 300 Riverside, CA 92507 Phone: (951) 774-0825 Fax: ( ) Order No. 617650498 Notice of Available Discounts Pursuant to Section 2355.3 in Title 10 of the California Code of Regulations Fidelity National Financial, Inc. and its subsidiaries ("FNF") must deliver a notice of each discount available under our current rate filing along with the delivery of escrow instructions, a preliminary report or commitment. Please be aware that the provision of this notice does not constitute a waiver of the consumer's right to be charged the filed rate. As such, your transaction may not qualify for the below discounts. You are encouraged to discuss the applicability of one or more of the below discounts with a Company representative. These discounts are generally described below; consult the rate manual for a full description of the terms, conditions and requirements for such discount. These discounts only apply to transactions involving services rendered by the FNF Family of Companies. This notice only applies to transactions involving property improved with a one -to -four family residential dwelling. FNF Underwritten Title Company FNF Underwriter LTC —Lawyers Title Company CLTIC —Commonwealth Land Title Insurance Co. Available Discounts DISASTER LOANS (CLTIC) The charge for a Lender's Policy (Standard or Extended coverage) covering the financing or refinancing by an owner of record, within 24 months of the date of a declaration of a disaster area by the government of the United States or the State of California on any land located in said area, which was partially or totally destroyed in the disaster, will be 50% of the appropriate title insurance rate. EMPLOYEE RATE (LTC and CLTIC) No charge shall be made to employees (including employees on approved retirement) of the Company or its underwritten, subsidiary or affiliated title companies for policies or escrow services in connection with financing, refinancing, sale or purchase of the employees' bona fide home property. Waiver of such charges is authorized only in connection with those costs which the employee would be obligated to pay, by established custom, as a party to the transaction. Notice of Available Discount Mod. 10/21/2011 FIDELITY NATIONAL FINANCIAL PRIVACY NOTICE Fidelity National Financial, Inc. and its majority -owned subsidiary companies (collectively, "FNF," "our," or "we") respect and are committed to protecting your privacy. This Privacy Notice explains how we collect, use, and protect personal information, when and to whom we disclose such information, and the choices you have about the use and disclosure of that information. Tvpes of Information Collected We may collect two types of information from you: Personal Information and Browsing Information. Personal Information. FNF may collect the following categories of Personal Information: • contact information (e.g., name, address, phone number, email address); • demographic information (e.g., date of birth, gender, marital status); • identity information (e.g. Social Security Number, driver's license, passport, or other government ID number); • financial account information (e.g, loan or bank account information); and • other personal information necessary to provide products or services to you. Browsing Information. FNF may automatically collect the following types of Browsing Information when you access an FNF website, online service, or application (each an "FNF Website") from your Internet browser, computer, and/or mobile device: • Internet Protocol (IP) address and operating system; • browser version, language, and type; • domain name system requests; and • browsing history on the FNF Website, such as date and time of your visit to the FNF Website and visits to the pages within the FNF Website. How Personal Information is Collected We may collect Personal Information about you from: • information we receive from you on applications or other forms; • information about your transactions with FNF, our affiliates, or others; and • information we receive from consumer reporting agencies and/or governmental entities, either directly from these entities or through others. How Browsing Information is Collected If you visit or use an FNF Website, Browsing Information may be collected during your visit. Like most websites, our servers automatically log each visitor to the FNF Website and may collect the Browsing Information described above. We use Browsing Information for system administration, troubleshooting, fraud investigation, and to improve our websites. Browsing Information generally does not reveal anything personal about you, though if you have created a user account for an FNF Website and are logged into that account, the FNF Website may be able to link certain browsing activity to your user account. Other Online Specifics Cookies. When you visit an FNF Website, a 'cookie" may be sent to your computer. A cookie is a small piece of data that is sent to your Internet browser from a web server and stored on your computer's hard drive. Information gathered using cookies helps us improve your user experience. For example, a cookie can help the website load properly or can customize the display page based on your browser type and user preferences. You can choose whether or not to accept cookies by changing your Internet browser settings. Be aware that doing so may impair or limit some functionality of the FNF Website. Web Beacons. We use web beacons to determine when and how many times a page has been viewed. This information is used to improve our websites. Do Not Track. Currently our FNF Websites do not respond to "Do Not Track" features enabled through your browser. Revised May 1, 2018 Copyright ©2018. Fidelity National Financial, Inc. All Rights Reserved Links to Other Sites. FNF Websites may contain links to other websites. FNF is not responsible for the privacy practices or the content of any of those other websites. We advise you to read the privacy policy of every website IOU visit. Use of Personal Information FNF uses Personal Information for three main purposes: • To provide products and services to you or in connection with a transaction involving you. • To improve our products and services. • To communicate with you about our, our affiliates', and third parties' products and services, jointly or independently. When Information Is Disclosed We may make disclosures of your Personal Information and Browsing Information in the following circumstances: • to enable us to detect or prevent criminal activity, fraud, material misrepresentation, or nondisclosure; • to nonaffiliated service providers who provide or perform services or functions on our behalf and who agree to use the information only to provide such services or functions; • to nonaffiliated third party service providers with whom we perform joint marketing, pursuant to an agreement with them to jointly market financial products or services to you; • to law enforcement or authorities in connection with an investigation, or in response to a subpoena or court order; or • in the good -faith belief that such disclosure is necessary to comply with legal process or applicable laws, or to protect the rights, property, or safety of FNF, its customers, or the public. The law does not require your prior authorization and does not allow you to restrict the disclosures described above. Additionally, we may disclose your information to third parties for whom you have given us authorization or consent to make such disclosure. We do not otherwise share your Personal Information or Browsing Information with nonaffiliated third parties, except as required or permitted by law. We reserve the right to transfer your Personal Information, Browsing Information, and any other information, in connection with the sale or other disposition of all or part of the FNF business and/or assets, or in the event of bankruptcy, reorganization, insolvency, receivership, or an assignment for the benefit of creditors. By submitting Personal Information and/or Browsing Information to FNF, you expressly agree and consent to the use and/or transfer of the foregoing information in connection with any of the above described proceedings. Please see "Choices With Your Information" to learn the disclosures you can restrict. Security of Your Information We maintain physical, electronic, and procedural safeguards to guard your Personal Information. We limit access to nonpublic personal information about you to employees who need to know that information to do their job. When we provide Personal Information to others as discussed in this Privacy Notice, we expect that they process such information in compliance with our Privacy Notice and in compliance with applicable privacy laws. Choices With Your Information If you do not want FNF to share your information with our affiliates to directly market to you, you may send an "opt out" request by email, phone, or physical mail as directed at the end of this Privacy Notice. We do not share your Personal Information with nonaffiliates for their use to direct market to you. Whether you submit Personal Information or Browsing Information to FNF is entirely up to you. If you decide not to submit Personal Information or Browsing Information, FNF may not be able to provide certain services or products to you. For California Residents: We will not share your Personal Information or Browsing Information with nonaffiliated third parties, except as permitted by California law. Revised May 1, 2018 Copyright ©2018. Fidelity National Financial, Inc. All Rights Reserved For Nevada Residents: You may be placed on our internal Do Not Call List by calling (888) 934-3354 or by contacting us via the information set forth at the end of this Privacy Notice. Nevada law requires that we also provide you with the following contact information: Bureau of Consumer Protection, Office of the Nevada Attorney General, 555 E. Washington St., Suite 3900, Las Vegas, NV 89101; Phone number: (702) 486-3132; email: BCPINFO@ag.state.nv.us. For Oregon Residents: We will not share your Personal Information or Browsing Information with nonaffiliated third parties for marketing purposes, except after you have been informed by us of such sharing and had an opportunity to indicate that you do not want a disclosure made for marketing purposes. For Vermont Residents: We will not disclose information about your creditworthiness to our affiliates and will not disclose your personal information, financial information, credit report, or health information to nonaffiliated third parties to market to you, other than as permitted by Vermont law, unless you authorize us to make those disclosures. Information From Children The FNF Websites are meant for adults and are not intended or designed to attract persons under the age of eighteen (18).We do not collect Personal Information from any person that we know to be under the age of thirteen (13) without permission from a parent or guardian. International Users FNF's headquarters is located within the United States. If you reside outside the United States and choose to provide Personal Information or Browsing Information to us, please note that we may transfer that information outside of your country of residence for any of the purposes described in this Privacy Notice. By providing FNF with your Personal Information and/or Browsing Information, you consent to our collection, transfer, and use of such information in accordance with this Privacy Notice. FNF Website Services for Mortgage Loans Certain FNF companies provide services to mortgage loan servicers, including hosting websites that collect customer information on behalf of mortgage loan servicers (the "Service Websites"). The Service Websites may contain links to both this Privacy Notice and the mortgage loan servicer or lender's privacy notice. The sections of this Privacy Notice titled When Information is Disclosed, Choices with Your Information, and Accessing and Correcting Information do not apply to the Service Websites. The mortgage loan servicer or lender's privacy notice governs use, disclosure, and access to your Personal Information. FNF does not share Personal Information collected through the Service Websites, except (1) as required or authorized by contract with the mortgage loan servicer or lender, or (2) as required by law or in the good -faith belief that such disclosure is necessary to comply with a legal process or applicable law, to enforce this Privacy Notice, or to protect the rights, property, or safety of FNF or the public. Your Consent To This Privacy Notice; Notice Changes By submitting Personal Information and/or Browsing Information to FNF, you consent to the collection and use of the information in accordance with this Privacy Notice. We may change this Privacy Notice at any time. The revised Privacy Notice, showing the new revision date, will be posted on the FNF Website. Each time you provide information to us following any amendment of this Privacy Notice, your provision of information to us will signify your assent to and acceptance of the terms of the revised Privacy Notice for all previously collected information and information collected from you in the future. We may use comments, information or feedback that you submit to us in any manner that we may choose without notice or compensation to you. Accessing and Correcting Information; Contact Us If you have questions, would like to access or correct your Personal Information, or want to opt -out of information sharing for affiliate marketing, send your requests via email to privacy@fnf.com, by phone to (888) 934-3354, or by mail to: Fidelity National Financial, Inc. 601 Riverside Avenue, Jacksonville, Florida 32204 Attn: Chief Privacy Officer Revised May 1, 2018 Copyright ©2018. 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