LLA for Gracia-10535 Cordova Rd, Alcalde Rd-APN: 342-44-029t�.
RECORDING REQUESTED BY
City of Cupertino
WHEN RECORDED MAIL TO:
CITY OF CUPERTINO
10300 TORRE AVENUE
CUPERTINO, CA 95014
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DOCUMENT: 13411825
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T it l es 1/ Pages 31
Fees. - No Fees
Taxes..
Copies..
AMT PAID
BRENDA DAVIS
SANTA CLARA COUNTY RECORDER
Recorded at the request of
North American Title Company
RDE # 003
8/19/1996
8 00 AM
( SPACE ABOVE THIS LINE FOR RECORDER'S USE)
n Ov�
LOT LINE ADJUSTMENT FOR GRACIA ON CORDOVA ROAD
DOCUMENT TITLE
V\<
SEPARATE PAGE, PURSUANT TO GOVT. CODE 27361.6
RECORDING REQUESTED BY: City of Cupertino
RETURN TO: City of Cupertino
10300 Torre Avenue
Cupertino, CA 95014
LOT LINE ADJUSTMENT
PROPERTY OWNERS: Richard E. Gracia and Nellie J. Gracia, his wife,
as Joint Tenants (Parcels A & B)
ACTION BY THE CITY ENGINEER APPROVING A LOT LINE ADJUSTMENT BETWEEN TWO OR MORE
ADJACENT PARCELS
BE IT RESOLVED BY THE CITY ENGINEER OF THE CITY OF CUPERTINO:
A request for a lot line adjustment between Parcels A and B, as designated on the attached
plat and descriptions marked Exhibit "A" and attached hereto, has been submitted by the record
owners of the above properties (as shown in Exhibit "B", attached) of the City of Cupertino with
the request that an adjustment of lot lines be approved by the City Engineer.
The City Engineer hereby finds that the lot line adjustment requested is between two or
more adjacent parcels, that the land taken from one of the parcels is added to the adjacent parcel
and that a greater number of parcels than originally existed would not be created.
Based on the above facts and findings and by the authority of Section 18-1.202.3C of the
City of Cupertino Municipal Code and Section #66412d of the Subdivision Map Act, said lot line
adjustment is hereby approved.
This lot line adjustment shall be totally null and void without further act of the City of
Cupertino, in the event that the change in title interest of ownership (including lien holder interest)
is not recorded by Grant Deeds within twelve (12) months from the approved date and/or in the
event that any change in title interest of ownership (including lien holder interest) from the
specified on the preliminary title report designated on Exhibit `B" and attached hereto, occurs prior
to the recordation of the grant deed conveying the real property in conformity to Exhibit "A".
Approved this 2S day of 3 1996.
BERT VISKOVICH
CITY ENGINEER
CIT'
By:
7/96
EXHIBIT A
LEGAL DESCRIPTION
PARCEL A BEFORE LOT LINE ADJUSTMENT
The Land referred to herein is situated in the State of California, County of
Santa Clara, City of Cupertino, and is described as follows:
Lot 219 as shown upon that certain map entitled "Map of Inspiration
Heights, Monta Vista", which map was filed for record in the office of the
recorder of the County of Santa Clara, State of California, on April 11,
1917 in Volume "P" of Maps, at Page 13.
Together with Lot 209 per Notice of Merger recorded Dec. 20, 1991 in Book
L976, Page 0700 of Official Records of Santa Clara County, California.
Containing 21,928.4 square feet, more or less.
No. 4CM3 t
EXHIBIT A
LEGAL DESCRIPTION
PARCEL A AFTER LOT LINE ADJUSTMENT
The Land referred to herein is situated in the State of California, County of
Santa Clara, City of Cupertino, and is described as follows:
Beginning at the northwest corner of Lot 219 as shown upon that certain map
entitled "Map of Inspiration Heights, Monta Vista", which map was filed for
record in the office of the recorder of the County of Santa Clara, State of
California, on April 11, 1917 in Volume "P" of Maps, at Page 13;
thence South 89 Degrees 40 Minutes 00 Seconds East a distance of 184.07 feet;
thence South 27 Degrees 02 Minutes 46 Seconds West a distance of 80.56 feet;
thence South 44 Degrees 23 Minutes 00 Seconds West a distance of 51.54 feet;
thence North 89 Degrees 40 Minutes 00 Seconds West a distance of 111.39 feet;
thence North 00 Degrees 00 Minutes 00 Seconds East a distance of 109.00 feet
to the Point of Beginning of this description.
Together with Lot 209 per Notice of Merger recorded Dec. 20, 1991 in Book
L976, Page 0700 of Official Records of Santa Clara County, California.
Containing 20,726.7 square feet, more or less.
EXHIBIT A
LEGAL DESCRIPTION
PARCEL B BEFORE LOT LINE ADJUSTMENT
The Land referred to herein is situated in the State of California, County of
Santa Clara, City of Cupertino, and is described as follows:
Lot 205 as shown upon that certain map entitled "Map of Inspiration
Heights, Monta Vista", which map was filed for record in the office of the
recorder of the County of Santa Clara, State of California, on April 11,
1917 in Volume "P" of Maps, at Page 13.
Containing 8,910.7 square feet, more or less.
EXHIBIT A
LEGAL DESCRIPTION
PARCEL B AFTER LOT LINE ADJUSTMENT
The Land referred to herein is situated in the State of California, County of
Santa Clara, City of Cupertino, and is described as follows:
Beginning at the most easterly corner of Lot 205 as shown upon that certain
map entitled "Map of Inspiration Heights, Monta Vista", which map was filed
for record in the office of the recorder of the County of Santa Clara, State
of California, on April 11, 1917 in Volume "P" of Maps, at Page 13;
thence South 44 Degrees 23 Minutes 00 Seconds West a distance of 100.12 feet;
thence North 45 Degrees 37 Minutes 00 Seconds West a distance of 89.00 feet;
thence North 27 Degrees 02 Minutes 46 Seconds East a distance of 80.56 feet;
thence South 89 Degrees 40 Minutes 00 Seconds East a distance of 33.40 feet;
thence South 45 Degrees 37 Minutes 00 Seconds East a distance of 89.00 feet
to the Point of Beginning of this description.
Containing 10,112.4 square feet, more or less.
EXHIBIT A
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North American Title Company
10121 MILLER AVENUE, SUITE ##101
CUPERTINO, CALIFORNIA 95014
(408) 973-9565
DATE JULY 12, 1996
RICHARD E. GRACIA
10545 CORDOVA ROAD
CUPERTINO, CALIFORNIA 95014
EXHIBIT B
ORDER NO. 1402524
PROPERTY ADDRESS:
10545 CORDOVA ROAD
CUPERTINO, CALIFORNIA
-----------PRELIMINARY REPORT ------------
IN RESPONSE TO THE ABOVE REFERENCED APPLICATION FOR A POLICY OF TITLE INSURANCE, NORTH AMERICAN TITLE COMPANY, INC.
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 FROM COMMONWEALTH LAND TITLE INSURANCE COMPANY, A PENNSYLVANIA CORPORATION, DESCRIBING THE LAND AND THE ESTATE
OR INTEREST THEREIN HEREINAFTER SET FORTH, INSURING AGAINST LOSS WHICH MAY BE SUSTAINED BY REASON OF ANY DEFECT, LIEN OR
ENCUMBRANCE NOT SHOWN OR REFERRED TO AS AN EXCEPTION BELOW OR NOT EXCLUDED FROM COVERAGE PURSUANT TO THE PRINTED
SCHEDULES, CONDITIONS AND STIPULATIONS OF SAID POLICY FORM.
THE PRINTED EXCEPTIONS AND EXCLUSIONS FROM THE COVERAGE OF SAID POLICY OR POLICIES ARE SET FORTH IN EXHIBIT "A" ATTACHED.
COPIES OF THE POLICY FORMS SHOULD BE READ. THEY ARE AVAILABLE FROM THE OFFICE WHICH ISSUED THIS REPORT.
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.
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.
EFFECTIVE JUNE 27, 1996 AS OF 7:30 A.M.
TARA J. DENHAM
(ESCROW OFFICER)
North American Title Company
EXHIBIT B
THE FORM OR FORMS OF POLICY OF TITLE INSURANCE CONTEMPLATED BY THIS
REPORT IS:
California Land Title Association Standard Coverage Policy - 1990
American Land Title Association Loan Policy - 1992
THE ESTATE OR INTEREST IN THE LAND HEREINAFTER DESCRIBED OR REFERRED
TO COVERED BY THIS REPORT IS:
FEE SIMPLE
TITLE TO SAID ESTATE OR INTEREST AT THE DATE HEREOF IS VESTED IN:
RICHARD E. GRACIA AND NELLIE J. GRACIA, HIS WIFE, AS JOINT TENANTS
Page 2 of 8 1402524
North American Title Company EXHIBIT B
THE LAND REFERRED TO HEREIN IS SITUATED IN THE STATE OF CALIFORNIA,
COUNTY OF SANTA CLARA, CITY OF CUPERTINO, AND IS DESCRIBED AS
FOLLOWS:
LOTS 209 AND 219, AS SHOWN UPON THAT CERTAIN MAP ENTITLED, "MAP OF
INSPIRATION HEIGHTS,-MONTA VISTA", WHICH MAP WAS FILED FOR RECORD
IN THE OFFICE OF THE RECORDER OF THE COUNTY OF SANTA CLARA, STATE
OF CALIFORNIA, ON APRIL 11, 1917 IN VOLUME "P" OF MAPS, AT PAGE 13,
SUBJECT TO NOTICE OF MERGER RECORDED DECEMBER 20, 1991 IN BOOK L976,
PAGE 700, OF OFFICIAL RECORDS.
ASSESSOR'S PARCEL NUMBER: 342-44-012 (PORTION)
Page 3 of 8 1402524
North American Title Company EXHIBIT B
ON THE DATE HEREOF EXCEPTIONS TO COVERAGE IN ADDITION TO THE PRINTED
EXCEPTIONS AND EXCLUSIONS CONTAINED IN SAID POLICY WOULD BE AS
FOLLOWS:
1. Property taxes, including any assessments collected with taxes,
to be levied for the fiscal year 1996-1997 which are a lien not
yet payable.
2. Property taxes, including any personal property taxes and any
assessments collected with taxes, for:
Fiscal Year 1995-1996
1st Installment $725.93 DELINQUENT
Penalty $72.59
2nd Installment $725.93 DELINQUENT
Penalty $82.59
Land $48,134.00
Improvements $65,464.00
Exemption $7,000.00
Assessment No. 342-44-012
Code Area 13-089
3.
51
Affects The herein described land and other land.
SAID PROPERTY HAS BEEN DECLARED TAX DEFAULTED FOR NON-PAYMENT
OF TAXES.
FISCAL YEAR
AMOUNT TO REDEEM:
IF PAID PRIOR TO:
AMOUNT TO REDEEM:
IF PAID PRIOR TO:
AMOUNT TO REDEEM:
IF PAID PRIOR TO:
ACCOUNT NO.
1992-1995
$4,883.89
JULY 31, 1996
$4,934.44
AUGUST 31, 1996
$4,984.99
SEPTEMBER 30, 1996
342-44-012
Affects The herein described land and other land.
An easement for the purpose shown below and rights incidental
thereto as set forth in a document
Granted To SANTA CLARA VALLEY LAND COMPANY
Purpose INGRESS, EGRESS, RAILROAD, GAS,
MAINS, CONDUITS FOR ELECTRICITY,
Recorded, Official Records MAY 12, 1922
Book 556
Page 30
Affects PORTION WITHIN ALCALDE ROAD
WATER OR OTHER
WIRES, CABLES
Page 4 of 8 1402524
North American Title Company E X H I B I T
12
5. An irrevocable offer to dedicate an easement for public street
and road purposes, affecting the portion of said land stated
therein.
Executed by ALMA E. GRACIA, ET AL
In Favor Of COUNTY OF SANTA CLARA
Recorded, Official Records AUGUST 28, 1950
Book 2057
Page 246
Affects THAT PORTION OF SAID LAND LYING WITHIN THE
BOUNDS OF ALCALDE ROAD
6. Deed of Trust for the original amount shown below, and any other
amounts payable under the terms thereof.
Original Amount $75,000.00
Dated MARCH 9, 1990
Recorded, Official Records MARCH 28, 1990
Book L301
Page 411
Instrument No. 10468073
Trustor RICHARD E. GRACIA AND NELLIE J. GRACIA, HIS
WIFE, AS JOINT TENANTS
Trustee MASTER MORTGAGE COMPANY, A CALIFORNIA
CORPORATION
Beneficiary FIRST NATIONWIDE BANK, A FEDERAL SAVINGS BANK
Assignment of the beneficial interest under said deed of trust
by instrument:
Recorded, Official Records OCTOBER 26, 1994
Book N645
Page 2213
Instrument No. 12699580
Assignee FIRST MADISON BANK, FSB
7. Matters which may be disclosed by an accurate inspection or survey
of said land that is satisfactory to this Company, or by inquiry
of the parties in possession thereof.
Page 5 of 8 1402524
North American Title Company
EXHIBIT B
NOTES:
There are no conveyances affecting said land recorded within six
months of the date of this report.
THE CHARGE FOR A POLICY OF TITLE INSURANCE, WHEN ISSUED THROUGH THIS
TITLE ORDER WILL BE BASED ON THE BASIC (NOT SHORT TERM) TITLE
INSURANCE RATE.
B
Page 6 of 8 1402524
EXHIBIT B
North American Title Company
LENDERS SUPPLEMENTAL REPORT
THE A.L.T.A. POLICY, WHEN ISSUED, WILL INCLUDE C.L.T.A. ENDORSEMENT
NUMBER 100 AND ENDORSEMENT 116 OR 116.2.
SAID LAND IS KNOWN AS 10545 CORDOVA ROAD, CUPERTINO, CALIFORNIA,
COUNTY OF SANTA CLARA, STATE OF CALIFORNIA.
Page. 7 of 8 1402524
EXHIBIT
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EXHIBIT B
GOOD FUNDS LAW
CALIFORNIA ASSEMBLY BILL 5.12 ("AB512") is effective on January 1, 1990. Under AB512, North American Title Company, Inc.
("NATC") may only make funds available for monetary dispersal in accordance with the following rules:
• SAME DAY AVAILABILITY - Disbursement on the date of deposit is allowed only when funds are deposited to North American
Title Company ("NATC") in CASH or by electronic transfer (WIRE). Bear in mind that cash will be accepted from customers only
under special circumstances as individually approved by management.
• NEXT DAY AVAILABILITY - If funds are deposited to NATC by cashier's checks, certified checks, or teller's checks, disbursement
may be on the next business day following deposit. A "teller's check" is one drawn by an insured financial institution against another
insured financial institution (e.g., a Savings and Loan funding with a check against a FDIC Insured Bank).
• 2 - 5 DAY AVAILABILITY (REGULATION CC). If the deposit is made by checks other than those described in paragraphs 1 and 2
above, disbursement may occur on the day when fiords must be made available to depositors under Federal Reserve Regulation CC. This
requires a "HOLD" on some checks of 2 - 5 days or longer in some instances. Personal checks, drafts, private corporation and company
checks, and funding checks from mortgage companies that are not teller's checks are among those checks subject to such holds. (For
further details, consult CHAPTER 598, STATUTES OF 1989.)
NOTE: The above guidelines are in conformity with those issued by The Department of Insurance for all California Title Insurance and
California Title Companies.
PRELIMINARY CHANGE OF OWNERSHIP REPORT
NOTE: On or after July 1, 1985, the County Recorder's office will charge, in addition to the regular charges, an extra $20.00 recording fee,
unless a document evidencing a change of ownership is accompanied by a preliminary change of ownership report. In lieu of said report,
signed by the transferee, the recorder will accept an affidavit that the transferee is not a resident of California. Title billings will be adjusted
to reflect such additional fees when applicable.
IRS FORM 1099
Before the transaction contemplated by this report can be closed, the selleriborrower must furnish a taxpayer identification number to us so
that we can file and IRS FORM 1099, or its equivalent, with the Internal Revenue Service. This procedure is required by SECTION 6045 of
the Internal Revenue Service.
NOTICE OF A WITHHOLDING REQUIREMENT
This is a notice of a withholding requirement (California Revenue and Taxation Code Sections 18862) on sales of real property.
In accordance with section 18662 of the Revenue and Taxation Code, a buyer may be required to withhold an amount equal to 3 1/3 percent
of the sales price, in the case of a disposition -of California real property interest by either:
• A seller who is an individual with a last known street address outside of California or when the disbursement instructions authorize the
proceeds be sent to a financial intermediary of the seller, or
• A corporate seller which has no permanent place of business in California, or
For failure to withhold, the buyer may become subject to a penalty in an amount equal to the greater of 10 percent of the amount required to
be withheld or five hundred dollars ($500).
HOWEVER, notwithstanding any other provision included in the California Statutes referenced above, no buyer will be required to withhold
any amount or be subject to penalty for failure to withhold if:
• The sales price of the California real property conveyed does not exceed one hundred thousand dollars ($100,000), or
• The seller executes a written certificate, under penalty of perjury, certifying that the seller is a resident of California, or if a corporation,
has a permanent place of business in California or
• The seller, who is an individual, executes a written certificate, under penalty of perjury, that the California real property being conveyed
is the seller's principal residence ( as defined in Section 1034 of the Internal Revenue Code).
The seller is subject to penalty for knowingly filing a fraudulent certificate for the purpose of avoiding the withholding requirement.
The California statutes referenced above include provisions which authorize the Franchise Tax Board to grant reduced withholding and
waivers from withholding on a case -by -case basis. In the event the buyer requires withholding of the 3 1/3 percent of sales price from the
sellers proceeds, the buyer is required to file a copy of Form FTB597 with the Franchise Tax Board along with the withholding amount due
no later than the 20th day of the month following the month in which the withholding occurred, unless the seller has requested a waiver. If
the seller has requested a waiver, the Franchise Tax Board, within 45 days, will either authorize a reduced amount, or no amount, or deny the
request, at which time the amount withheld along with copy A of Form FTB 597 must be sent to the Franchise Tax Board, at the following
address: FRANCHISE TAX BOARD WITHHOLDING AT SOURCE UNIT, P.O. BOX 651, Sacramento, California 95812-0651 —
(916) 845-4900.
EXHIBIT B
Informational Note:
Problem Areas for Title Companies
1. Ongoing Construction
The title company will require, as a minimum, the following prior to insuring:
A. Valid Notice of Completion verified by inspection and expiration of 60 days from
recordation of said notice or;
B. Approved indemnities from Borrower/Seller, approved financial statement not over one
year old and a waiver of lien rights from general contractor.
• The title company may also require proof of payment of subcontractors, indemnity
and financial statement from the general contractor, a copy of the contract and the
with -holding of a sum of money, to cover the contract until the mechanics lien
period has expired, with which to pay filed mechanics liens, or other assurances to
be determined on a case by case basis.
2. Bankruptcy
The title company will require, as a minimum, the following prior to insuring:
A. The bankruptcy case be closed or;
B. An order from the bankruptcy court verifying the transaction, with a demand placed
into escrow by the trustee.
• Escrow may not close until 15 days have elapsed from the order and the file has
been checked to verify that there are no objections to said order.
3. Abstracts of Judgment, Liens, Tax Liens
The title company will require, as a minimum, prior to insuring:
A. Proof that the buyer/seller is not the same party as on the recorded liens.
• This is accomplished by the buyer/seller/borrower completely filling out and
signing a statement of information.
B. The items are to be paid off in escrow.
C. The items are to be subordinated to the new transaction.
4. Community Property
California is a community property state.
A. A quitclaim from one spouse to another must specifically quitclaim any community
property interest.
B. An interlocutory decree of divorce specifically granting the property to one spouse is
sufficient if a final decree is issued and recorded in the county.
EXHIBIT "A" EXHIBIT B
LIST OF PREPRINTED POLICY EXCLUSIONS AND EXCEPTIONS
CALIFORNIA LAND TITLE ASSOCIATION STANDARD COVERAGE POLICY —1990
EXCLUSIONS FROM COVERAGE
The following matters art expressly excluded from the coverage of this policy and the Company will not pay loss or damage, costs, attomeyi fees or expenses which arise
by reason of :
1. (a) Any law, ordinance or governmental regulation (including but not limited to building and zoning laws, ordinances, or regulations) restricting, regulating, prohibiting
or relating to (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 allegdd 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 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.
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 oc 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 or interest insured by this policy or the transaction creating the interest of the insured
lender, by reason of the operation of federal bankruptcy, state insolvency or similar creditors' rights laws.
EXCEPTIONS FROM COVERAGE (SCHEDULE B - PART 1)
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
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, which are 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_o_r
not the matters excepted under (a), (b) or (c) are shown by the public records.
AMERICAN LAND TITLE ASSOCIATION OWNER'S POLICY (10-17-92)
AND AMERICAN LAND TITLE ASSOCIATION LEASEHOLD OWNER'S POLICY (10-17-92)
EXCLUSIONS FROM COVERAGE
The following matters are expressly excluded from the coverage of this policy and the Company will not pay loss or damage, costs, attorneys' fees or expenses which arise
by reason of:
1. (a) Any law, ordinance or governmental regulation (including but not limited to building and zoning laws, ordinances, or regulations) restricting, regulating, prohibiting
or relating to (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 allegdd 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 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.
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) 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 estate or interest insured by this policy.
4. Any claim which arises out of the transaction vesting in the Insured the estate or interest insured by this policy, by reason of the operation of federal bankruptcy, state
insolvency, or similar creditors' rights laws, that is based on:
(a) the transaction creating the estate or interest insured by this policy being deemed a fraudulent conveyance or fraudulent transfer, or
(b) the transaction creating the estate or interest insured by the policy being deemed a preferential transfer except where the preferential transfer results from the failure:
(i) to timely record the instrument of transfer, or
(ii) of such recordation to impart notice to a purchaser for value or a judgment or lien creditor.
Form 2210-6 (9-94) (Continued on back)
EXHIBIT B -
AMERICAN LAND TITLE ASSOCIATION LOAN POLICY
WITH A.L.T.A. ENDORSENIENT FORM 1 COVERAGE (10-17-92)
AND A.L.T.A. LEASEHOLD LOAN POLICY (10-17-92)
EXCLUSIONS FROM COVERAGE
he 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
r reason of:
1. (a) Any law, ordinance or governmental regulation (including but not limited to building and zoning laws, ordinances, or regulations) restricting, regulating, prohibiting
or relating to (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 govemmental 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 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.
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) 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 (except to the extent that this policy insures the priority of the lien of the insured mortgage over any statutory lien
for services, labor or material *[or to the extent insurance is afforded herein as to assessments for street improvements under construction or completed at 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.
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 statutory lien for services, labor or materials (o� the claim of priority of any statutory lien for services, labor or materials over the lien of the insured mortgage)
arising from an improvement or work related to the land which is contracted for and commenced subsequent to Date of Policy and is not financed in whole or in part by
proceeds of the indebtedness secured by the insured mortgage which at Date of Policy the insured has advanced or is obligated to advance.
7. Any claim which arises out of the transaction creating the interest of the mortgagee insured by this policy, by reason of the operation of federal bankruptcy, state
solvency, or similar creditors' rights laws, that is based on:
the transaction creating the interest of the insured mortgagee being deemed a fraudulent conveyance or fraudulent transfer, or
,u) the subordination of the interest of the insured mortgagee as a result of the application of the doctrine of equitable subordination; or
(c) the transaction creating the interest of the insured mortgagee being deemed a preferential transfer except where the preferential transfer results from the failure:
(i) to timely record the instrument of transfer, or
(ii) of such recordation to impart notice to a purchaser for value or a judgment or lien creditor.
• Inner Brackets denote coverage not contained in Leasehold Loan Policy.
AMERICAN LAND TITLE ASSOCIATION RESIDENTIAL TITLE INSURANCE POLICY (6-1-87)
PRINTED POLICY EXCEPTIONS AND EXCLUSIONS
The Exclusions and the Exceptions of the ALTA Residential Policy Form recite that you are not insured against loss or damage, costs, attorneys' fees and expenses
resulting from:
Exclusions
1. Governmental police power, and the existence or violation of any law or
government regulation. This includes building and zoning ordinances
and also laws and regulations concerning:
• land use
• improvements on the land
• land division
• environmental protection
This exclusion does not apply to violations or the enforcement of these
matters which appear in the public records at Policy Date.
This exclusion does not limit the zoning coverage described in Items 12
and 13 of Covered Title Risks.
2. The right to take the land by condemning it, unless:
• a notice of exercising the right appears in the public records on the
Policy Date.
• the taking happened prior to the Policy Date and is binding on you if
you bought the land without knowing of the taking.
3. Title Risks:
• that are created, allowed, or agreed to by you
• that are known to you, but not to us, on the Policy Date — unless they
appeared in the public records
• that result in no loss to you
• that first affect your title after the Policy Date — this does not limit the
labor and material lien coverage in Item 8 of Covered Title Risks
4. Failure to pay value for your title.
5. Lack of a right:
• to any land outside the area specifically described and referred to in
Item 3 of Schedule A
or
• in streets, alleys, or waterways that touch your land
This exclusion does not limit the access coverage in item 5 of Covered
Title Risks.
Standard Exceptions
(a) Any rights, interests or claims of parties in possession of the land not shown by the public records.
(b) Any easements or liens not shown by the public records.
This does not limit the lien coverage in Item 8 of the Covered Title Risks.
(c) Any facts about the land which a correct survey would disclose and which are not shown by the public records.
This does not limit the forced removal coverage in Item 12 of Covered Title Risks.
(d) Any water rights, claims or title to water on or under the land.
B2210-6
North American Title Company
10121 MILLER AVENUE, SUITE #101
CUPERTINO, CALIFORNIA 95014
(408) 973-9565
DATE JULY 12, 1996
RICHARD E. GRACIA
10545 CORDOVA ROAD
CUPERTINO, CA 95014
EXHIBIT B
ORDER NO. 1402368
PROPERTY ADDRESS:
10545 CORDOVA ROAD
CUPERTINO, CALIFORNIA
"U Vo ilkU
-----------PRELIMINARY REPORT ------------
IN RESPONSE TO THE ABOVE REFERENCED APPLICATION FOR A POLICY OF TITLE INSURANCE, NORTH AMERICAN TITLE COMPANY, INC.
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 FROM COMMONWEALTH LAND TITLE INSURANCE COMPANY, A PENNSYLVANIA CORPORATION, DESCRIBING THE LAND AND THE ESTATE
OR INTEREST THEREIN HEREINAFTER SET FORTH, INSURING AGAINST LOSS WHICH MAY BE SUSTAINED BY REASON OF ANY DEFECT, LIEN OR
ENCUMBRANCE NOT SHOWN OR REFERRED TO AS AN EXCEPTION BELOW OR NOT EXCLUDED FROM COVERAGE PURSUANT TO THE PRINTED
SCHEDULES, CONDITIONS AND STIPULATIONS OF SAID POLICY FORM.
THE PRINTED EXCEPTIONS AND EXCLUSIONS FROM THE COVERAGE OF SAID POLICY OR POLICIES ARE SET FORTH IN EXHIBIT "A" ATTACHED.
COPIES OF THE POLICY FORMS SHOULD BE READ. THEY ARE AVAILABLE FROM THE OFFICE WHICH ISSUED THIS REPORT.
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.
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.
EFFECTIVE JUNE 27, 1996 AS OF 7:30 A.M.
TARA J. DENHAM
(ESCROW OFFICER)
EXHIBIT B
North American Title Company
THE FORM OR FORMS OF POLICY OF TITLE INSURANCE CONTEMPLATED BY THIS
REPORT IS:
California Land Title Association Standard Coverage Policy - 1990
American Land Title Association Loan Policy - 1992
THE ESTATE OR INTEREST IN THE LAND HEREINAFTER DESCRIBED OR REFERRED
TO COVERED BY THIS REPORT IS:
FEE SIMPLE
TITLE TO SAID ESTATE OR INTEREST AT THE DATE HEREOF IS VESTED IN:
RICHARD E. GRACIA AND NELLIE J. GRACIA, HIS WIFE, AS JOINT TENANTS
Page 2 of 8 1402368
North American Title Company
EXHIBIT B
THE LAND REFERRED TO HEREIN IS SITUATED IN THE STATE OF CALIFORNIA,
COUNTY OF SANTA CLARA, CITY OF CUPERTINO, AND IS DESCRIBED AS
FOLLOWS:
LOT 205, AS SHOWN UPON THAT CERTAIN MAP ENTITLED, "MAP OF INSPIRATION
HEIGHTS, MONTA VISTA", WHICH MAP WAS FILED FOR RECORD IN THE OFFICE
OF THE RECORDER OF THE COUNTY OF SANTA CLARA, STATE OF CALIFORNIA,
ON APRIL 11, 1917 IN VOLUME "P" OF MAPS, AT PAGE 13.
ASSESSOR'S PARCEL NUMBER: 342-44-012 (PORTION)
Page 3 of 8 1402368
North American Title Company
EXHIBIT
0
ON THE DATE HEREOF EXCEPTIONS TO COVERAGE IN ADDITION TO THE PRINTED
EXCEPTIONS AND EXCLUSIONS CONTAINED IN SAID POLICY WOULD BE AS
FOLLOWS:
1. Property taxes, including any assessments collected with taxes,
to be levied for the fiscal year 1996-1997 which are a lien not
yet payable.
2. Property taxes, including any personal property taxes and any
assessments collected with taxes, for:
3.
9
Fiscal Year
1995-1996
1st Installment
$725.93 DELINQUENT
Penalty
$72.59
2nd Installment
$725.93 DELINQUENT
Penalty
$82.59
Land
$48,134.00
Improvements
$65,464.00
Exemption
$7,000.00
Assessment No.
342-44-012
Code Area
13-089
Affects The herein described land and other land.
SAID PROPERTY HAS BEEN DECLARED TAX DEFAULTED FOR NON-PAYMENT
OF TAXES.
FISCAL YEAR
AMOUNT TO REDEEM:
IF PAID PRIOR TO:
AMOUNT TO REDEEM:
IF PAID PRIOR TO:
AMOUNT TO REDEEM:
IF PAID PRIOR TO:
ACCOUNT NO.
1992-1995
$4,883.89
JULY 31, 1996
$4,934.44
AUGUST 31, 1996
$4,984.99
SEPTEMBER 30, 1996
342-44-012
Affects The herein described land and other land.
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.
S. Rights of the Public, County and/or City in that portion lying
within the street as it now exists
Street Name CORDOVA ROAD
Page 4 of 8 1402368
Title CompanyEXHIBIT B
North American
6. An easement for the purpose shown below and rights incidental
thereto as set forth in a document
Granted To SANTA CLARA VALLEY LAND CO.
Purpose INGRESS AND EGRESS, RAILROAD, GAS, WATER AND
OTHER MAINS, CONDUITS FOR ELECTRICITY WIRES
AND CABLES
Recorded, Official Records MAY 13, 1922
Book 556
Page 30
Affects PORTION WITHIN CORDOVA ROAD
7. Deed of Trust for the original amount shown below, and any other
amounts payable under the terms thereof.
Original Amount $75,000.00
Dated MARCH 9, 1990
Recorded, Official Records MARCH 28, 1990
Book L301
Page 411
Instrument No. 10468073
Trustor RICHARD E. GRACIA AND NELLIE J. GRACIA, HIS
WIFE, AS JOINT TENANTS
Trustee MASTER MORTGAGE COMPANY, A CALIFORNIA
CORPORATION
Beneficiary FIRST NATIONWIDE BANK, A FEDERAL SAVINGS BANK
Assignment of the beneficial interest under said deed of trust
by instrument:
Recorded, Official Records OCTOBER 26, 1994
Book N645
Page 2213
Instrument No. 12699580
Assignee FIRST MADISON BANK, FSB
8. Matters which may be disclosed by an accurate inspection or survey
of said land that is satisfactory to this Company, or by inquiry
of the parties in possession thereof.
Page 5 of 8. 1402368
North American Title Company
EXHIBIT B
NOTES:
There are no conveyances affecting said land recorded within six
months of the date of this report.
THE CHARGE FOR A POLICY OF TITLE INSURANCE, WHEN ISSUED THROUGH THIS
TITLE ORDER WILL BE BASED ON THE BASIC (NOT SHORT TERM) TITLE
INSURANCE RATE.
NOTE: EFFECTIVE MARCH 1, 1979 THERE WILL BE AN ADDITIONAL $10.00
FEE FOR RECORDING A DEED WITH A LEGAL DESCRIPTION OTHER THAN AN ENTIRE
LOT IN A RECORDED FINAL MAP. IF THERE ARE ANY QUESTIONS, PLEASE CALL
YOUR ESCROW OFFICER OR TITLE OFFICER.
Page 6 of 8 1402368
North American Title Company
EXHIBIT B
LENDERS SUPPLEMENTAL REPORT
THE A.L.T.A. POLICY, WHEN ISSUED, WILL INCLUDE C.L.T.A. ENDORSEMENT
NUMBER 100 AND ENDORSEMENT 116 OR 116.2.
SAID LAND IS KNOWN AS 10545 CORDOVA ROAD, CUPERTINO, CALIFORNIA,
COUNTY OF SANTA CLARA, STATE OF CALIFORNIA.
Page 7 of 8 1402368
EXHIBIT
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EXHIBIT B
GOOD FUNDS LAW
CALIFORNIA ASSEMBLY BILL 5,12 ("AB512") is effective on January 1, 1990. Under AB512, North American Title Company, Inc.
("NATC") may only make funds available for monetary dispersal in accordance with the following rules:
• SAME DAY AVAILABILITY - Disbursement on the date of deposit is allowed only when funds are deposited to North American
Title Company ("NATC") in CASH or by electronic transfer (WIRE). Bear in mind that cash will be accepted from customers only
under special circumstances as individually approved by management.
• NEXT DAY AVAILABILITY - If funds are deposited to NATC by cashier's checks, certified checks, or teller's checks, disbursement
may be on the next business day following deposit. A "teller's check" is one drawn by an insured financial institution against another
insured financial institution (e.g., a Savings and Loan funding with a check against a FDIC Insured Bank).
• 2 - 5 DAY AVAILABILITY (REGULATION CC). If the deposit is made by checks other than those described in paragraphs 1 and 2
above, disbursement may occur on the day when funds must be made available to depositors under Federal Reserve Regulation CC. This
requires a "HOLD" on some checks of 2 - 5 days or longer in some instances. Personal checks, drafts, private corporation and company
checks, and funding checks from mortgage companies that are not teller's checks are among those checks subject to such holds. (For
further details, consult CHAPTER 598, STATUTES OF 1989.)
NOTE: The above guidelines are in conformity with those issued by The Department of Insurance for all California Title Insurance and
California Title Companies.
PRELIMINARY CHANGE OF OIENERSHIP REPORT
NOTE: On or after July 1, 1985, the County Recorder's office will charge, in addition to the regular charges, an extra $20.00 recording fee,
unless a document evidencing a change of ownership is accompanied by a preliminary change of ownership report. In lieu of said report,
signed by the transferee, the recorder will accept an affidavit that the transferee is not a resident of California. Title billings will be adjusted
to reflect such additional fees when applicable.
IRS FORM 1099
Before the transaction contemplated by this report can be closed, the seller/borrower must furnish a taxpayer identification number to us so
that we can file and IRS FORM 1099, or its equivalent, with the Internal Revenue Service. This procedure is required by SECTION 6045 of
the Internal Revenue Service.
NOTICE OF A WITHHOLDING REQUIREMENT
This is a notice of a withholding requirement (California Revenue and Taxation Code Sections 18862) on sales of real property.
In accordance with section 18662 of the Revenue and Taxation Code, a buyer may be required to withhold an amount equal to 3 1/3 percent
of the sales price, in the case of a disposition of California real property interest by either:
• A seller who is an individual with a last known street address outside of California or when the disbursement instructions authorize the
proceeds be sent to a financial intermediary of the seller, or
• A corporate seller which has no permanent place of business in California, or
For failure to withhold, the buyer may become subject to a penalty in an amount equal to the greater of 10 percent of the amount required to
be withheld or five hundred dollars ($500).
HOWEVER, notwithstanding any other provision included in the California Statutes referenced above, no buyer will be required to withhold
any amount or be subject to penalty for failure to withhold if:
• The sales price of the California real property conveyed does not exceed one hundred thousand dollars ($100,000), or
• The seller executes a written certificate, under penalty of perjury, certifying that the seller is a resident of California, or if a corporation,
has a permanent place of business in California or
• The seller, who is an individual, executes a written certificate, under penalty of perjury, that the California real property being conveyed
is the seller's principal residence ( as defined in Section 1034 of the Internal Revenue Code).
The seller is subject to penalty for knowingly filing a fraudulent certificate for the purpose of avoiding the withholding requirement.
The California statutes referenced above include provisions which authorize the Franchise Tax Board to grant reduced withholding and
waivers from withholding on a case -by -case basis. In the event the buyer requires withholding of the 3 1/3 percent of sales price from tF
sellers proceeds, the buyer is required to file a copy of Form FTB597 with the Franchise Tax Board along with the withholding amount du,
no later than the 20th day of the month following the month in which the withholding occurred, unless the seller has requested a waiver. If
the seller has requested a waiver, the Franchise Tax Board, within 45 days, will either authorize a reduced amount, or no amount, or deny the
request, at which time the amount withheld along with copy A of Form FTB 597 must be sent to the Franchise Tax Board, at the following
address: FRANCHISE TAX BOARD WITHHOLDING AT SOURCE UNIT, P.O. BOX 651, Sacramento, California 95812-0651 —
(916) 845-4900.
EXHIBIT B
Informational Note:
Problem Areas for Title Companies
1. Ongoing Construction
The title company will require, as a minimum, the following prior to insuring:
A. Valid Notice of Completion verified by inspection and expiration of 60 days from
recordation of said notice or;
B. Approved indemnities from Borrower/Seller, approved financial statement not over one
year old and a waiver of lien rights from general contractor.
The title company may also require proof of payment of subcontractors, indemnity
and financial statement from the general contractor, a copy of the contract and the
with -holding of a sum of money, to cover the contract until the mechanics lien
period has expired, with which to pay filed mechanics liens, or other assurances to
be determined on a case by case basis.
2. Bankruptcy
The title company will require, as a minimum, the following prior to insuring:
A. The bankruptcy case be closed or;
B. An order from the bankruptcy court verifying the transaction, with a demand placed
into escrow by the trustee.
• Escrow may not close until 15 days have elapsed from the order and the file has
been checked to verify that there are no objections to said order.
3. Abstracts of Judgment, Liens, Tax Liens
The title company will require, as a minimum, prior to insuring:
A. Proof that the buyer/seller is not the same parry as on the recorded liens.
• This is accomplished by the buyer/seller/borrower completely filling out and
signing a statement of information.
B. The items are to be paid off in escrow.
C. The items are to be subordinated to the new transaction.
4. Community Property
California is a community property state.
A. A quitclaim from one spouse to another must specifically quitclaim any community
property interest.
B. An interlocutory decree of divorce specifically granting the property to one spouse is
sufficient if a final decree is issued and recorded in the county.
EXHIBIT "A" EXHIBIT B
LIST OF PREPRINTED POLICY EXCLUSIONS AND EXCEPTIONS
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 a
by reason of:
1. (a) Any law, ordinance or governmental regulation (including but not limited to building and zoning laws, ordinances, or regulations) restricting, regulating, prohibitin
or relating to (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) r
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, orthe efTect
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 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.
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 of for the estate or interest insured
by this policy.
4. Unenforceabiiity 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 or interest insured by this policy or the transaction creating the interest of the insured
lender, by reason of the operation of federal bankruptcy, state insolvency or similar creditors' rights laws.
EXCEPTIONS FROM COVERAGE (SCHEDULE B - PART n
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
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 b•
persons in possession thereof.
3. Easements, liens or encumbrances, or claims thereof, which are 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.
AMERICAN LAND TITLE ASSOCIATION OWNER'S POLICY 00-17-92)
AND AMERICAN LAND TITLE ASSOCIATION LEASEHOLD OWNER'S POLICY (10-17-92)
EXCLUSIONS FROM COVERAGE
The following matters are expressly excluded from the coverage of this policy and the Company will not pay loss or damage, costs, attorneys' fees or expenses which arise
by reason of:
1. (a) Any law, ordinance or governmental regulation (including but not limited to building and zoning laws, ordinances, or regulations) restricting, regulating. prohibitir.
or relating to (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)
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 effec
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 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.
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) 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 b.
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 estate or interest insured by this policy.
4. Any claim which arises out of the transaction vesting in the Insured the estate or interest insured by this policy, by reason of the operation of federal bankruptcy, state
insolvency, or similar creditors' rights laws, that is based on:
(a) the transaction creating the estate or interest insured by this policy being deemed a fraudulent conveyance or fraudulent transfer; or
(b) the transaction creating the estate or interest insured by the policy being deemed a preferential transfer except where the preferential transfer results from the failur
(i) to timely record the instrument of transfer; or
(ii) of such recordation to impart notice to a purchaser for value or a judgment or lien creditor.
Form 2210-6 (9-94) (Continued on bac
AMERICAN LAND TITLE ASSOCIATION LOAN POLICY EXHIBIT B
WITH A.L.T.A. ENDORSEMENT FORM 1 COVERAGE (10-17-92)
AND A.L.T.A. LEASEHOLD LOAN POLICY (10-17-92)
EXCLUSIONS FROM COVERAGE
I ollowing matters are expressly excluded from the coverage of this policy and the Company will not pay loss or damage, costs, attorneys fees or expenses which arise
by reason of:
1. (a) Any law, ordinance or governmental regulation (including but not limited to building and zoning laws, ordinances, or regulations) restricting, regulating, prohibiting
or relating to (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 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.
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) 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 (except to the extent that this policy insures the priority of the lien of the insured mortgage over any statutory lien
for services, labor or material •[or to the extent insurance is afforded herein as to assessments for street improvements under construction or completed at 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.
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 statutory lien for services, labor or materials (o'� the claim of priority of any statutory lien for services, labor or materials over the lien of the insured mortgage)
arising from an improvement or work related to the land which is contracted for and commenced subsequent to Date of Policy and is not financed in whole or in part by
proceeds of the indebtedness secured by the insured mortgage which at Date of Policy the insured has advanced or is obligated to advance.
7. Any claim which arises out of the transaction creating the interest of the mortgagee insured by this policy, by reason of the operation of federal bankruptcy, state
insolvency, or similar creditors' rights laws, that is based on:
(a) the transaction creating the interest of the insured mortgagee being deemed a fraudulent conveyance or fraudulent transfer, or
'b) the subordination of the interest of the insured mortgagee as a result of the application of the doctrine of equitable subordination; or
(c) the transaction creating the interest of the insured mortgagee being deemed a preferential transfer except where the preferential transfer results from the failure:
(i) to timely record the instrument of transfer, or
(ii) of such recordation to impart notice to a purchaser for value or a judgment or lien creditor.
Inner Brackets denote coverage not contained in Leasehold Loan Policy.
AMERICAN LAND TITLE ASSOCIATION RESIDENTIAL TITLE INSURANCE POLICY (6-1-87)
PRINTED POLICY EXCEPTIONS AND EXCLUSIONS
The Exclusions and the Exceptions of the ALTA Residential Policy Form recite that you are not insured against loss or damage, costs, attorneys' fees and expenses
resulting from:
Exclusions
1. Governmental police power, and the existance or violation of any law or
government regulation. This includes building and zoning ordinances
and also laws and regulations concerning:
• land use
• improvements on the land
• land division
• environmental protection
This exclusion does not apply to violations or the enforcement of these
matters which appear in the public records at Policy Date.
This exclusion does not limit the zoning coverage described in Items 12
and 13 of Covered Title Risks.
3. Title Risks:
• that are created, allowed, or agreed to by you
• that are known to you, but not to us, on the Policy Date — unless they
appeared in the public records
• that result in no loss to you
• that first affect your title after the Policy Date — this does not limit the
labor and material lien coverage in Item 8 of Covered Title Risks
4. Failure to pay value for your title.
5. Lack of a right:
• to any land outside the area specifically described and referred to it
2. The right to take the land by condemning it, unless: Item 3 of Schedule A
• a notice of exercising the right appears in the public records on the or
Policy Date. • in streets, alleys, or waterways that touch your land
• the taking happened prior to the Policy Date and is binding on you if This exclusion does not limit the access coverage in Item 5 of Coverec
you bought the land without knowing of the taking. Tide Risks.
Standard Exceptions
(a) Any rights, interests or claims of parties in possession of the land not shown by the public records.
(b) Any easements or liens not shown by the public records.
This does not limit the lien coverage in Item 8 of the Covered Title Risks.
(c) Any facts about the land which a correct survey would disclose and which are not shown by the public records.
This does not limit the forced removal coverage in Item 12 of Covered Title Risks.
(d) Any water rights, claims or title to water on or under the land.
B 2210-6