HomeMy WebLinkAbout3.09 VMC Title Report Form No. 14 Guarantee No.: NCS-815621-WA1
Subdivision Guarantee
First American Title Insurance Company
Issued by
First American Title Insurance Company
818 Stewart Street, Suite 800, Seattle, WA 98101
Title Officer: Lavonne Bowman
Phone: (206)728-0400
FAX: (206)448-6348
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GUARANTEE
Form No. 14 Guarantee No.: NCS-815621-WA1
Subdivision Guarantee (4-10-75) Page No.: 1
First American Title Insurance Company
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First American Title Insurance Company
National Commercial Services
818 Stewart Street, Suite 800, Seattle, WA 98101
(206)728-0400 - (800)526-7544 FAX (206)448-6348
Lavonne Bowman Jessica Bowerman
(206)615-3269 (206)615-3049
lavbowman@firstam.com jbowerman@firstam.com
SUBDIVISION GUARANTEE
LIABILITY $ 2,000.00 ORDER NO.: NCS-815621-WA1
FEE $ 1,500.00 TAX $144.00 YOUR REF.: Valley Medical Center
First American Title Insurance Company
a Corporation, herein called the Company
Subject to the Liability Exclusions and Limitations set forth below and in Schedule A.
GUARANTEES
Valley Medical Center
herein called the Assured, against loss not exceeding the liability amount stated above which the Assured
shall sustain by reason of any incorrectness in the assurances set forth in Schedule A.
LIABILITY EXCLUSIONS AND LIMITATIONS
1. No guarantee is given nor liability assumed with respect to the validity, legal effect or priority of
any matter shown therein.
2. The Company's liability hereunder shall be limited to the amount of actual loss sustained by the
Assured because of reliance upon the assurance herein set forth, but in no event shall the
Company's liability exceed the liability amount set forth above.
3. This Guarantee is restricted to the use of the Assured for the purpose of providing title evidence
as may be required when subdividing land pursuant to the provisions of Chapter 58.17, R.C.W.,
and the local regulations and ordinances adopted pursuant to said statute. It is not to be used
as a basis for closing any transaction affecting title to said property.
Dated: September 27, 2016 at 7:30 A.M.
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Form No. 14 Guarantee No.: NCS-815621-WA1
Subdivision Guarantee (4-10-75) Page No.: 2
First American Title Insurance Company
= SCHEDULE A
The assurances referred to on the face page are:
A. Title is vested in:
Public Hospital District No. 1 of King County, a Washington municipal corporation, aka Valley
General Hospital as to Parcels I, III, IV and V and HR Valley North, LLC, a Delaware limited
liability company as to Parcel II
B. That according to the Company's title plant records relative to the following described real
property (including those records maintained and indexed by name), there are no other
documents affecting title to said real property or any portion thereof, other than those shown
below under Record Matters.
The following matters are excluded from the coverage of this Guarantee:
1. Unpatented Mining Claims, reservations or exceptions in patents or in acts authorizing the
issuance thereof.
2. Water rights, claims or title to water.
3. Tax Deeds to the State of Washington.
4. Documents pertaining to mineral estates.
DESCRIPTION:
PARCEL I:
LOTS 1 THROUGH 10, TRACT A AND PARCEL B OF VALLEY MEDICAL CENTER NORTH CAMPUS
BINDING SITE PLAN NO. LUA-93-108. BSP LND-35-0007 RECORDED IN VOLUME 166 AT PAGES
89 THROUGH 93, INCLUSIVE, IN KING COUNTY, WASHINGTON;
EXCEPT THE BUILDING AND IMPROVEMENTS LOCATED ON SAID PARCEL B.
PARCEL II:
THE BUILDING AND IMPROVEMENTS LOCATED ON THE FOLLOWING DESCRIBED PARCEL:
PARCEL B OF VALLEY MEDICAL CENTER NORTH CAMPUS BINDING SITE PLAN NO. LUA-93-108.
BSP LND-35-0007 RECORDED IN VOLUME 166 AT PAGES 89 THROUGH 93, INCLUSIVE, IN KING
COUNTY, WASHINGTON.
PARCEL III:
LOT A OF DR. BRAIN RENTON SHORT PLAT NO. 213-78, ACCORDING TO SHORT PLAT
RECORDED DECEMBER 14, 1978 UNDER RECORDING NO. 7812149018, IN KING COUNTY,
WASHINGTON.
PARCEL IV:
COMMENCING AT A POINT WHERE THE WESTERLY BORDER LINE OF COUNTY ROAD NO. 80
Form No. 14 Guarantee No.: NCS-815621-WA1
Subdivision Guarantee (4-10-75) Page No.: 3
First American Title Insurance Company
(KNOWN AS KENT-KANGLEY ROAD) INTERSECTS THE NORTH LINE OF THE NORTHEAST
QUARTER OF SECTION 31, TOWNSHIP 23 NORTH, RANGE 5 EAST, W.M., THE POINT OF
BEGINNING;
THENCE WEST ALONG THE NORTH LINE OF SAID SECTION 31 A DISTANCE OF 200 FEET;
THENCE SOUTH A DISTANCE OF 75 FEET;
THENCE EAST TO THE WESTERLY BORDER LINE OF SAID COUNTY ROAD NO. 80;
THENCE NORTHERLY ALONG THE WESTERLY BORDER LINE OF SAID COUNTY ROAD NO. 80 TO
THE POINT OF BEGINNING.
PARCEL V:
THE NORTH 85 FEET OF THAT PORTION OF THE NORTHWEST QUARTER OF THE NORTHEAST
QUARTER OF THE NORTHEAST QUARTER OF SECTION 31, TOWNSHIP 23 NORTH, RANGE 5
EAST, W.M., IN KING COUNTY, WASHINGTON, LYING WEST OF COUNTY ROAD NO. 80 AND
EAST OF A LINE 300 FEET WEST, MEASURED ALONG THE NORTH LINE OF SAID SUBDIVISION,
FROM THE INTERSECTION OF SAID NORTH LINE WITH THE WESTERLY LINE OF COUNTY ROAD
NO. 80;
EXCEPT THE NORTH 75 FEET OF THE EAST 200 FEET THEREOF, MEASURED ALONG SAID
NORTH LINE THEREOF.
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Form No. 14 Guarantee No.: NCS-815621-WA1
Subdivision Guarantee (4-10-75) Page No.: 4
First American Title Insurance Company
= RECORD MATTERS:
1. Liability, if any, for pro-rata portion of Real Property taxes which are carried on the
King County Tax Rolls, as tax account no. 885767-0010-05, are exempt.
We note Special Charges for the year 2016 in the amount of $9.23, of which $9.23 has been paid.
Balance due: $0.00.
(Affects Lot 1)
2. Liability, if any, for pro-rata portion of Real Property taxes which are carried on the
King County Tax Rolls, as tax account no. 885767-0020-03, are exempt.
We note Special Charges for the year 2016 in the amount of $9.23, of which $9.23 has been paid.
Balance due: $0.00.
(Affects Lot 2)
3. Liability, if any, for pro-rata portion of Real Property taxes which are carried on the
King County Tax Rolls, as tax account no. 885767-0030-01, are exempt.
We note Special Charges for the year 2016 in the amount of $9.23, of which $9.23 has been paid.
Balance due: $0.00.
(Affects Lot 3)
4. Liability, if any, for pro-rata portion of Real Property taxes which are carried on the
King County Tax Rolls, as tax account no. 885767-0040-09, are exempt.
We note Special Charges for the year 2016 in the amount of $9.23, of which $9.23 has been paid.
Balance due: $0.00.
(Affects Lot 4)
5. Liability, if any, for pro-rata portion of Real Property taxes which are carried on the
King County Tax Rolls, as tax account no. 885767-0050-06, are exempt.
We note Special Charges for the year 2016 in the amount of $9.23, of which $9.23 has been paid.
Balance due: $0.00.
(Affects Lot 5)
6. Liability, if any, for pro-rata portion of Real Property taxes which are carried on the
King County Tax Rolls, as tax account no. 885767-0060-04, are exempt.
We note Special Charges for the year 2016 in the amount of $9.23, of which $9.23 has been paid.
Balance due: $0.00.
Form No. 14 Guarantee No.: NCS-815621-WA1
Subdivision Guarantee (4-10-75) Page No.: 5
First American Title Insurance Company
(Affects Lot 6)
7. General Taxes for the year 2016.
Tax Account No.: 885767-0070-02
Amount Billed: $ 224,954.90
Amount Paid: $ 112,477.45
Amount Due: $ 112,477.45
Assessed Land Value: $ 376,300.00
Assessed Improvement Value: $ 16,639,200.00
(Affects Lot 7, taxable portion)
8. Liability, if any, for pro-rata portion of Real Property taxes which are carried on the
King County Tax Rolls, as tax account no. 885767-0070-93, are exempt.
(Affects Lot 7, exempt portion)
9. Liability, if any, for pro-rata portion of Real Property taxes which are carried on the
King County Tax Rolls, as tax account no. 885767-0080-00, are exempt.
We note Special Charges for the year 2016 in the amount of $9.23, of which $9.23 has been paid.
Balance due: $0.00.
(Affects Lot 8)
10. Liability, if any, for pro-rata portion of Real Property taxes which are carried on the
King County Tax Rolls, as tax account no. 885767-0100-06, are exempt.
We note Special Charges for the year 2016 in the amount of $9.23, of which $9.23 has been paid.
Balance due: $0.00.
(Affects Lot 10)
11. Liability, if any, for pro-rata portion of Real Property taxes which are carried on the
King County Tax Rolls, as tax account no. 885767-0110-04, are exempt.
We note Special Charges for the year 2016 in the amount of $9.23, of which $9.23 has been paid.
Balance due: $0.00.
(Affects Parcel B of Valley General Hospital)
12. Liability, if any, for pro-rata portion of Real Property taxes which are carried on the
King County Tax Rolls, as tax account no. 302305-9034-03, are exempt.
We note Special Charges for the year 2016 in the amount of $9.23, of which $9.23 has been paid.
Balance due: $0.00.
(Affects Parcel C)
Form No. 14 Guarantee No.: NCS-815621-WA1
Subdivision Guarantee (4-10-75) Page No.: 6
First American Title Insurance Company
13. Liability, if any, for pro-rata portion of Real Property taxes which are carried on the
King County Tax Rolls, as tax account no. 312305-9065-04, are exempt.
We note Special Charges for the year 2016 in the amount of $9.23, of which $9.23 has been paid.
Balance due: $0.00.
(Affects Parcel D)
14. Liability, if any, for pro-rata portion of Real Property taxes which are carried on the
King County Tax Rolls, as tax account no. 312305-9085-00, are exempt.
We note Special Charges for the year 2016 in the amount of $7.70, of which $7.70 has been paid.
Balance due: $0.00.
(Affects Parcel E)
15. Potential charges, for the King County Sewage Treatment Capacity Charge, as authorized under
RCW 35.58 and King County Code 28.84.050. Said charges could apply for any property that
connected to the King County Sewer Service area on or after February 1, 1990.
Note: Properties located in Snohomish County and Pierce County may be subject to the King
County Sewage Treatment Capacity Charges. To verify charges contact: (206) 296-1450 or
CapChargeEscrow@kingcounty.gov.
16. Facility Charges, if any, including but not limited to hook-up, or connection charges and
latecomer charges for water or sewer facilities of South Talbot Hill-Valley General Hospital
Area as disclosed by instrument recorded March 26, 1984 as recording no. 8403260504.
17. Easement, including terms and provisions contained therein:
Recording Information: December 13, 1916 as 1103039
In Favor of: Puget Sound Traction, Light & Comppany
For: Transmission and/or distribution line
18. Right to make necessary slopes for cuts or fills upon said premises for John Langston Road as
granted by deed recorded April 9, 1934 under recording no. 2794913.
19. Covenants, conditions, restrictions and/or easements:
Recorded: July 1, 1969
Recording No.: 6533037
20. Easement, including terms and provisions contained therein:
Recording Information: January 28, 1970 under Recording No. 6614144
In Favor of: Puget Sound Power and Light Company, a Washington
corporation
For: Electric transmission and/or distribution system
Affects: as described therein
21. Easement, including terms and provisions contained therein:
Form No. 14 Guarantee No.: NCS-815621-WA1
Subdivision Guarantee (4-10-75) Page No.: 7
First American Title Insurance Company
Recording Information: January 28, 1970 under Recording No. 6614145
In Favor of: Puget Sound Power and Light Company, a Washington
corporation
For: Electric transmission and/or distribution system
Affects: as described therein
22. Easement, including terms and provisions contained therein:
Recording Information: January 12, 1976 under Recording No. 7601120549
In Favor of: Puget Sound Power & Light Company, a Washington
corporation
For: Electric transmission and/or distribution system
Affects: as described therein
23. Restrictions, conditions, dedications, notes, easements and provisions, if any, as contained
and/or delineated on the face of the Valley General Hospital-Dr. Brain Short Plat No. 213-
78 recorded December 14, 1978 under Recording No. 7812149018, in King County, Washington.
24. The terms and provisions contained in the document entitled "License Agreement", executed by
and between Public Hospital District No. 1 of King County, a municipal corporation and City of
Renton, a municipal corporation, recorded August 20, 1979 as Instrument No. 7908200611 of
Official Records.
25. Easement, including terms and provisions contained therein:
Recording Information: July 31, 1979 under Recording No. 7907311138
In Favor of: Puget Sound Power & Light Company, a Washington
corporation
For: Electric transmission and/or distribution system
Affects: as described therein
26. Easement, including terms and provisions contained therein:
Recording Information: August 13, 1979 under Recording No. 7908130547
In Favor of: City of Renton, a municipal corporation
For: Drainage facility
Affects: as described therein
27. Easement, including terms and provisions contained therein:
Recording Information: April 13, 1981 under Recording No. 8104130478
In Favor of: City of Renton, a municipal corporation
For: Water pipelines
Affects: as described therein
28. Easement, including terms and provisions contained therein:
Recording Information: April 16, 1981 under Recording No. 8104160537
In Favor of: Puget Sound Power & Light Company, a Washington
corporation
Form No. 14 Guarantee No.: NCS-815621-WA1
Subdivision Guarantee (4-10-75) Page No.: 8
First American Title Insurance Company
For: Underground electric transmission and/or distribution system
Affects: as described therein
29. Easement, including terms and provisions contained therein:
Recording Information: October 27, 1981 under Recording No. 8110270511
In Favor of: City of Renton, a municipal corporation
For: Sewer line
Affects: as described therein
30. The terms and provisions contained in the document entitled "Agreement", executed by and
between San Lwai, Cavella Lwai and Blue Mt. Development Ltd. and Eugene Brain and Lillian
Brain , recorded November 3, 1981 under Recording No. 8111030304 of Official Records.
31. Easement, including terms and provisions contained therein:
Recording Information: November 16, 1981 under Recording No. 8111160317
In Favor of: Pacific Northwest Bell Telephone Company, a Washington
corporation
For: Underground communication lines
Affects: as described therein
32. Easement, including terms and provisions contained therein:
Recording Date: December 11, 1981
Recording Information: 8112110351
In Favor of: Puget Sound Power & Light Company, a Washington
corporation
For: Electric transmission and/or distribution system
Affects: as described therein
33. Easement, including terms and provisions contained therein:
Recording Information: December 11, 1981 under Recording No. 8112110352
In Favor of: Puget Sound Power & Light Company, a Washington
corporation
For: Electric transmission and/or distribution system
Affects: as described therein
34. Reservations and exceptions, including the terms and conditions thereof:
Reserving: Minerals
Reserved By: Robert P. Bonamy and Vadie B. Bonamy
Recorded: January 12, 1982
Recording Information: 8201120257
35. The terms, provisions and easement(s) contained in the document entitled "Agreement and
Easement for Sewer" recorded December 9, 1982 as Recording No. 8212090481 of Official
Records.
36. Easement, including terms and provisions contained therein:
Recording Information: August 13, 1984 under Recording No. 8408130445
Form No. 14 Guarantee No.: NCS-815621-WA1
Subdivision Guarantee (4-10-75) Page No.: 9
First American Title Insurance Company
In Favor of: Puget Sound Power & Light Company, a Washington
corporation
For: Electric transmission and/or distribution system
Affects: as described therein
37. Easement, including terms and provisions contained therein:
Recording Date: October 31, 1986
Recording Information: 8610311868
In Favor of: City of Renton
For: Public utilities
Affects: as described therein
38. Easement, including terms and provisions contained therein:
Recording Information: September 8, 1987 under Recording No. 8709080354
In Favor of: San Lwai and Blue Mountain Limited Partnership, a Washington
limited partnership
For: 24 foot wide access road
Affects: as described therein
Said easement partially terminated by instrument recorded June 2, 1989 under Recording No.
8906020695.
39. Deed of Trust and the terms and conditions thereof.
Grantor/Trustor: King County Hospital District No. 1 (a/k/a Valley General
Hospital, Renton, Washington)
Grantee/Beneficiary: Old National Bank of Washington, a Washington corporation
Trustee: Commonwealth Land and Title Company of Philadelphia
Amount: $264,085.16
Recorded: October 27, 1987
Recording Information: 8710270692
40. Easement, including terms and provisions contained therein:
Recording Information: April 4, 1988 under Recording No. 8804040492
In Favor of: Puget Sound Power & Light Company, a Washington
corporation
For: Electric transmission and/or distribution system
Affects: as described therein
41. The terms, provisions and easement(s) contained in the document entitled "Declaration of
Easements and Utilities Services Agreement" recorded May 19, 1989 as Recording No.
8905191454 of Official Records.
42. Covenants, conditions, restrictions and/or easements:
Recorded: May 19, 1989 and September 14, 2016
Recording No.: 8905191455 and 2016091000747
43. Easement, including terms and provisions contained therein:
Recording Information: December 28, 1989 under Recording No. 8912281554
Form No. 14 Guarantee No.: NCS-815621-WA1
Subdivision Guarantee (4-10-75) Page No.: 10
First American Title Insurance Company
For: Access and parking
Affects: as described therein
44. The terms and provisions contained in the document entitled "Notice of Underground Storage
Tank Abandonment" recorded March 23, 1990 under Recording No. 9003230403 of Official
Records.
45. Lease made by Public Hospital District No. 1 of King County, a Washington municipal corporation
dba Valley Medical Center, lessor, to McDonald's Corporation, a Delaware corporation, lessee, for
a term of 5 years, and the covenants and conditions as therein contained, as disclosed by
Memorandum of Lease dated March 25, 1992, and recorded May 5, 1992 as document
no. 9205051517.
Said lease, among other things provides for an option to renew for a period of 5 additional terms
of 5 years each.
(Affects a portion of Lot 1)
Document(s) declaring modifications thereof recorded November 25, 1992 as 9211251627 of
Official Records.
46. Easement, including terms and provisions contained therein:
Recording Information: May 14, 1992 under Recording No. 9205140426
In Favor of: Valley Two Limited Partnership, a Washington limited
partnership
For: Utility services, parking and access
Affects: as described therein
Document(s) declaring modifications thereof recorded September 22, 1999 as Recording No.
19990922001766 of Official Records.
47. Lease made by Public Hospital District No. 1 of King County, a Washington municipal corporation,
lessor, to Valley Two Limited Partnership, a Washington limited partnership, lessee, for a term
of 50 years, and the covenants and conditions as therein contained, as disclosed by
Memorandum of Lease dated April 1, 1992, and recorded May 14, 1992 as document
no. 9205140427.
Said lease, among other things provides for an option to renew for a period of 2 additional terms
of 15 years each.
Document(s) declaring modifications thereof recorded as 9205140428, 9401310722, 7401310724
and 19990922001764 of Official Records.
Lessee's interest is now held of record by AHP of Washington, Inc., a Washington corporation
pursuant to instruments recorded under Recording Nos. 19990922001761, 19990922001762,
20061002001389 and 20061002001390.
Form No. 14 Guarantee No.: NCS-815621-WA1
Subdivision Guarantee (4-10-75) Page No.: 11
First American Title Insurance Company
48. Lease made by Valley Two Limited Partnership, a Washington limited partnership, lessor,
to Public Hospital District No. 1 of King County, a Washington municipal corporation, lessee, for a
term of 20 years, and the covenants and conditions as therein contained, as disclosed by
Memorandum of Lease dated April 21, 1992, and recorded May 14, 1992 as document
no. 9205140429.
Said lease, among other things provides for an option to renew for a period of 2 additional terms
of 10 years each and 1 term of 5 years.
(Affects Suite 100, Lot 7)
49. Lease made by Valley Two Limited Partnership, a Washington limited partnership, lessor,
to Public Hospital District No. 1 of King County, a Washington municipal corporation, lessee, for a
term of 12 years, and the covenants and conditions as therein contained, as disclosed by
Memorandum of Lease dated April 21, 1992, and recorded May 14, 1992 as document
no. 9205140430.
Said lease, among other things provides for an option to renew for a period of 5 years.
(Affects Suite 300, Lot 7)
50. The terms and provisions contained in the document entitled "Street Use Permit"
recorded January 15, 1993 as Recording No. 9301150938 of Official Records.
51. Easement, including terms and provisions contained therein:
Recording Information: February 23, 1993 under Recording No. 9302232323
In Favor of: City of Renton, a municipal corporation
For: Utilities, roadway slopes and sidewalk areas
Affects: The portion adjoining Southwest 43rd Street and Talbot Road
52. Easement, including terms and provisions contained therein:
Recording Information: July 12, 1993 under Recording No. 9307121299
In Favor of: City of Renton, a municipal corporation
For: Utilities, roadway slopes
Affects: as described therein
53. Restrictions, conditions, dedications, notes, easements and provisions, if any, as contained
and/or delineated on the face of the Valley Medical Center North Campus Binding Site Plan No.
LUA-93-108 BSP LND-35-0007 recorded Volume 166 of Plats at Page(s) 89 through 93, in
King County, Washington.
54. Deed of Trust and the terms and conditions thereof.
Grantor/Trustor: Valley Medical Office Building LLP, a Washington limited liability
company
Grantee/Beneficiary: National Life Insurance Company, a Vermont corporation
Trustee: Chicago Title Insurance Company
Amount: $15,000,000.00
Recorded: June 2, 2010
Recording Information: 20100602000274
Form No. 14 Guarantee No.: NCS-815621-WA1
Subdivision Guarantee (4-10-75) Page No.: 12
First American Title Insurance Company
(Affects Lot 9)
55. Assignment of leases and/or rents and the terms and conditions thereof:
Assignor: Valley Medical Office Building LLP, a Washington limited liability
company
Assignee: National Life Insurance Company, a Vermont corporation
Recorded: June 2, 2010
Recording Information: 20100602000275
(Affects Lot 9)
56. Lease made by Public Hospital District No. 1 of King County, a Washington municipal corporation,
lessor, to HR Valley North, LLC, a Delaware limited liability company, lessee, for a term of 99
years, and the covenants and conditions as therein contained, as disclosed by Memorandum of
Lease dated April 29, 2016, and recorded April 29, 2016 as document no. 20160429000645.
(Affects Parcel B of Parcel I)
57. The terms and provisions contained in the document entitled "Appurtenant Easement
Agreement" recorded April 29, 2016 as 20160429000646 of Official Records.
(Affects Parcel B of Parcel I)
58. Terms and conditions of the Bargain and Sale Deed between Valley Medical Office Building LLP,
grantor and HR Valley North, LLC, grantee, recorded under Recording No. 20160912000775. Said
deed purportes to convey the building and improvements only. No record is found of a proper
severance of said building and improvements.
(Affects Lot 9)
59. Lease made by Public Hospital District No. 1 of King County, a Washington municipal corporation,
lessor, to HR Valley North, LLC, a Delaware limited liability company, lessee, for a term of 99
years, and the covenants and conditions as therein contained, as disclosed by Memorandum of
Lease dated September 13, 2016, and recorded September 14, 2016 as document
no. 20160914000746.
Said lease amends and restates that ground lease recorded under Recording No. 8712290469
and all amendments thereto.
(Affects Lot 9)
60. Unrecorded leaseholds, if any, rights of vendors and security agreement on personal property
and rights of tenants, and secured parties to remove trade fixtures at the expiration of the term.
Form No. 14 Guarantee No.: NCS-815621-WA1
Subdivision Guarantee (4-10-75) Page No.: 13
First American Title Insurance Company
INFORMATIONAL NOTES
A. Any sketch attached hereto is done so as a courtesy only and is not part of any title commitment
or policy. It is furnished solely for the purpose of assisting in locating the premises and First
American expressly disclaims any liability which may result from reliance made upon it.
B. General taxes for the year 2016 which have been paid.
Tax Account No. 885767-0090-05
Amount: $216,588.45
Assessed Land Value: $385,300.00
Assessed Improvement Value: $15,965,000.00
(Affects Lot 9)
Form No. 14 Guarantee No.: NCS-815621-WA1
Subdivision Guarantee (4-10-75) Page No.: 14
First American Title Insurance Company
SCHEDULE OF EXCLUSIONS FROM COVERAGE OF THIS GUARANTEE
1. Except to the extent that specific assurance are provided in this Guarantee, the Company assumes no liability for loss or damage by reason of the following:
(a) Defects, liens, encumbrances, adverse claims or other matters against the title, whether or not shown by the public records. (b) (1) Taxes or assessments of any taxing authority that levies taxes or assessments on real property; or, (2) Proceedings by a public agency which may result in taxes or assessments, or notices of such proceedings, whether or not the matters excluded under (1) or (2) are shown by the records of the taxing authority or by the public
records. (c) (1) Unpatented mining claims; (2) reservations or exceptions in patents or in Acts authorizing the issuance thereof; (3) water rights, claims or title to water, whether
or not the matters excluded under (1), (2) or (3) are shown by the public records. 2. Notwithstanding any specific assurances which are provided in this Guarantee, the Company assumes no liability for loss or damage by reason of the following:
(a) Defects, liens, encumbrances, adverse claims or other matters affecting the title to any property beyond the lines of the land expressly described in this Guarantee, or title to streets, roads, avenues, lanes, ways or waterways to which such land abuts, or the right to maintain therein vaults, tunnels, ramps, or any structure or improvements;
or any rights or easements therein, unless such property, rights or easements are expressly and specifically set forth in said description. (b) Defects, liens, encumbrances, adverse claims or other matters, whether or not shown by the public records; (1) which are created, suffered, assumed or agreed to by one or more of the Assureds; (2) which result in no loss to the Assured; or (3) which do not result in the invalidity or potential invalidity of any judicial or non-judicial
proceeding which is within the scope and purpose of the assurances provided. (c) The identity of any party shown or referred to in this Guarantee.
(d) The validity, legal effect or priority of any matter shown or referred to in this Guarantee.
GUARANTEE CONDITIONS AND STIPULATIONS
1. Definition of Terms.
The following terms when used in the Guarantee mean: (a) the "Assured": the party or parties named as the Assured in this Guarantee, or
on a supplemental writing executed by the Company.
(b) "land": the land described or referred to in this Guarantee, and improvements affixed thereto which by law constitute real property. The term "land" does not
include any property beyond the lines of the area described or referred to in this Guarantee, nor any right, title, interest, estate or easement in abutting streets, roads,
avenues, alleys, lanes, ways or waterways. (c) "mortgage": mortgage, deed of trust, trust deed, or other security instrument.
(d) "public records" : records established under state statutes at Date of Guarantee for the purpose of imparting constructive notice of matters relating to real
property to purchasers for value and without knowledge. (e) "date": the effective date.
2. Notice of Claim to be Given by Assured Claimant. An Assured shall notify the Company promptly in writing in case knowledge shall
come to an Assured hereunder of any claim of title or interest which is adverse to the title to the estate or interest, as stated herein, and which might cause loss or damage
for which the Company may be liable by virtue of this Guarantee. If prompt notice shall not be given to the Company, then all liability of the Company shall terminate
with regard to the matter or matters for which prompt notice is required; provided, however, that failure to notify the Company shall in no case prejudice the rights of
any Assured under this Guarantee unless the Company shall be prejudiced by the failure and then only to the extent of the prejudice.
3. No Duty to Defend or Prosecute. The Company shall have no duty to defend or prosecute any action or proceeding to
which the Assured is a party, notwithstanding the nature of any allegation in such action or proceeding.
4. Company's Option to Defend or Prosecute Actions; Duty of Assured
Claimant to Cooperate. Even though the Company has no duty to defend or prosecute as set forth in Paragraph 3 above:
(a) The Company shall have the right, at its sole option and cost, to institute and prosecute any action or proceeding, interpose a defense, as limited in (b), or to do
any other act which in its opinion may be necessary or desirable to establish the title to the estate or interest as stated herein, or to establish the lien rights of the
Assured, or to prevent or reduce loss or damage to the Assured. The Company may take any appropriate action under the terms of this Guarantee, whether or not it shall
be liable hereunder, and shall not thereby concede liability or waive any provision of this Guarantee. If the Company shall exercise its rights under this paragraph, it shall
do so diligently. (b) If the Company elects to exercise its options as stated in Paragraph 4(a) the Company shall have the right to select counsel of its choice (subject to the right of
such Assured to object for reasonable cause) to represent the Assured and shall not be liable for and will not pay the fees of any other counsel, nor will the Company pay
any fees, costs or expenses incurred by an Assured in the defense of those causes of action which allege matters not covered by this Guarantee.
(c) Whenever the Company shall have brought an action or interposed a defense
as permitted by the provisions of this Guarantee, the Company may pursue any litigation to final determination by a court of competent jurisdiction and expressly
reserves the right, in its sole discretion, to appeal from an adverse judgment or order. (d) In all cases where this Guarantee permits the Company to prosecute or
provide for the defense of any action or proceeding, an Assured shall secure to the Company the right to so prosecute or provide for the defense of any action or
proceeding, and all appeals therein, and permit the Company to use, at its option, the name of such Assured for this purpose. Whenever requested by the Company, an
Assured, at the Company's expense, shall give the Company all reasonable aid in any action or proceeding, securing evidence, obtaining witnesses, prosecuting or
defending the action or lawful act which in the opinion of the Company may be
necessary or desirable to establish the title to the estate or interest as stated herein, or to establish the lien rights of the Assured. If the Company is prejudiced by the
failure of the Assured to furnish the required cooperation, the Company's obligations to the Assured under the Guarantee shall terminate.
5. Proof of Loss or Damage.
In addition to and after the notices required under Section 2 of these Conditions and Stipulations have been provided to the Company, a proof of loss or damage signed
and sworn to by the Assured shall be furnished to the Company within ninety (90) days after the Assured shall ascertain the facts giving rise to the loss or damage. The proof of loss or damage shall describe the matters covered by this Guarantee which
constitute the basis of loss or damage and shall state, to the extent possible, the basis of calculating the amount of the loss or damage. If the Company is prejudiced
by the failure of the Assured to provide the required proof of loss or damage, the Company's obligation to such Assured under the Guarantee shall terminate. In
addition, the Assured may reasonably be required to submit to examination under oath by any authorized representative of the Company and shall produce for
examination, inspection and copying, at such reasonable times and places as may be designated by any authorized representative of the Company, all records, books, ledgers, checks, correspondence and memoranda, whether bearing a date before or
after Date of Guarantee, which reasonably pertain to the loss or damage. Further, if requested by any authorized representative of the Company, the Assured shall grant
its permission, in writing, for any authorized representative of the Company to examine, inspect and copy all records, books, ledgers, checks, correspondence and
memoranda in the custody or control of a third party, which reasonably pertain to the Loss or Damage. All information designated as confidential by the Assured provided
to the Company, pursuant to this Section shall not be disclosed to others unless, in the reasonable judgment of the Company, it is necessary in the administration of the
claim. Failure of the Assured to submit for examination under oath, produce other reasonably requested information or grant permission to secure reasonably necessary information from third parties as required in the above paragraph, unless prohibited
by law or governmental regulation, shall terminate any liability of the Company under this Guarantee to the Assured for that claim.
Form No. 1282 (Rev. 12/15/95)
First American Title Insurance Company
6. Options to Pay or Otherwise Settle Claims: Termination of Liability. In case of a claim under this Guarantee, the Company shall have the following
additional options: (a) To Pay or Tender Payment of the Amount of Liability or to Purchase the
Indebtedness.
The Company shall have the option to pay or settle or compromise for or in the name of the Assured any claim which could result in loss to the Assured within the coverage
of this Guarantee, or to pay the full amount of this Guarantee or, if this Guarantee is issued for the benefit of a holder of a mortgage or a lienholder, the Company shall
have the option to purchase the indebtedness secured by said mortgage or said lien for the amount owing thereon, together with any costs, reasonable attorneys' fees and
expenses incurred by the Assured claimant which were authorized by the Company up to the time of purchase. Such purchase, payment or tender of payment of the full amount of the Guarantee
shall terminate all liability of the Company hereunder. In the event after notice of claim has been given to the Company by the Assured the Company offers to purchase
said indebtedness, the owner of such indebtedness shall transfer and assign said indebtedness, together with any collateral security, to the Company upon payment of
the purchase price. Upon the exercise by the Company of the option provided for in Paragraph (a) the
Company's obligation to the Assured under this Guarantee for the claimed loss or damage, other than to make the payment required in that paragraph, shall terminate,
including any obligation to continue the defense or prosecution of any litigation for which the Company has exercised its options under Paragraph 4, and the Guarantee shall be surrendered to the Company for cancellation.
(b) To Pay or Otherwise Settle With Parties Other Than the Assured or With the Assured Claimant.
To pay or otherwise settle with other parties for or in the name of an Assured claimant any claim Assured against under this Guarantee, together with any costs, attorneys'
fees and expenses incurred by the Assured claimant which were authorized by the Company up to the time of payment and which the Company is obligated to pay.
Upon the exercise by the Company of the option provided for in Paragraph (b) the Company's obligation to the Assured under this Guarantee for the claimed loss or
damage, other than to make the payment required in that paragraph, shall terminate, including any obligation to continue the defense or prosecution of any litigation for which the Company has exercised its options under Paragraph 4.
7. Determination and Extent of Liability.
This Guarantee is a contract of Indemnity against actual monetary loss or damage sustained or incurred by the Assured claimant who has suffered loss or damage by
reason of reliance upon the assurances set forth in this Guarantee and only to the extent herein described, and subject to the Exclusions From Coverage of This
Guarantee.
The Liability of the Company under this Guarantee to the Assured shall not exceed the least of:
(a) the amount of liability stated in this Guarantee; (b) the amount of the unpaid principal indebtedness secured by the mortgage of an
Assured mortgagee, as limited or provided under Section 6 of these Conditions and Stipulations or as reduced under Section 9 of these Conditions and Stipulations, at the
time the loss or damage Assured against by this Guarantee occurs, together with interest thereon; or
(c) the difference between the value of the estate or interest covered hereby as stated herein and the value of the estate or interest subject to any defect, lien or
encumbrance Assured against by this Guarantee.
8. Limitation of Liability.
(a) If the Company establishes the title, or removes the alleged defect, lien or encumbrance, or cures any other matter Assured against by this Guarantee in a
reasonably diligent manner by any method, including litigation and the completion of any appeals therefrom, it shall have fully performed its obligations with respect to that
matter and shall not be liable for any loss or damage caused thereby. (b) In the event of any litigation by the Company or with the Company's consent, the Company shall have no liability for loss or damage until there has been a final
determination by a court of competent jurisdiction, and disposition of all appeals therefrom, adverse to the title, as stated herein.
(c) The Company shall not be liable for loss or damage to any Assured for liability voluntarily assumed by the Assured in settling any claim or suit without the
prior written consent of the Company.
9. Reduction of Liability or Termination of Liability.
All payments under this Guarantee, except payments made for costs, attorneys' fees and expenses pursuant to Paragraph 4 shall reduce the amount of liability pro tanto.
10. Payment of Loss.
(a) No payment shall be made without producing this Guarantee for endorsement of the payment unless the Guarantee has been lost or destroyed, in which case proof
of loss or destruction shall be furnished to the satisfaction of the Company. (b) When liability and the extent of loss or damage has been definitely fixed in accordance with these Conditions and Stipulations, the loss or damage shall be
payable within thirty (30) days thereafter.
11. Subrogation Upon Payment or Settlement. Whenever the Company shall have settled and paid a claim under this Guarantee, all
right of subrogation shall vest in the Company unaffected by any act of the Assured claimant.
The Company shall be subrogated to and be entitled to all rights and remedies which the Assured would have had against any person or property in respect to the claim had
this Guarantee not been issued. If requested by the Company, the Assured shall transfer to the Company all rights and remedies against any person or property necessary in order to perfect this right of subrogation. The Assured shall permit the
Company to sue, compromise or settle in the name of the Assured and to use the name of the Assured in any transaction or litigation involving these rights or remedies.
If a payment on account of a claim does not fully cover the loss of the Assured the Company shall be subrogated to all rights and remedies of the Assured after the
Assured shall have recovered its principal, interest, and costs of collection.
12. Arbitration. Unless prohibited by applicable law, either the Company or the Assured may demand
arbitration pursuant to the Title Insurance Arbitration Rules of the American Arbitration Association. Arbitrable matters may include, but are not limited to, any controversy or claim between the Company and the Assured arising out of or relating to this
Guarantee, any service of the Company in connection with its issuance or the breach of a Guarantee provision or other obligation. All arbitrable matters when the Amount
of Liability is $1,000,000 or less shall be arbitrated at the option of either the Company or the Assured. All arbitrable matters when the amount of liability is in excess of
$1,000,000 shall be arbitrated only when agreed to by both the Company and the Assured. The Rules in effect at Date of Guarantee shall be binding upon the parties.
The award may include attorneys' fees only if the laws of the state in which the land is
located permits a court to award attorneys' fees to a prevailing party. Judgment upon the award rendered by the Arbitrator(s) may be entered in any court having
jurisdiction thereof. The law of the situs of the land shall apply to an arbitration under the Title Insurance
Arbitration Rules. A copy of the Rules may be obtained from the Company upon request.
13. Liability Limited to This Guarantee; Guarantee Entire Contract.
(a) This Guarantee together with all endorsements, if any, attached hereto by the Company is the entire Guarantee and contract between the Assured and the
Company. In interpreting any provision of this Guarantee, this Guarantee shall be
construed as a whole. (b) Any claim of loss or damage, whether or not based on negligence, or any action
asserting such claim, shall be restricted to this Guarantee. (c) No amendment of or endorsement to this Guarantee can be made except by a
writing endorsed hereon or attached hereto signed by either the President, a Vice President, the Secretary, an Assistant Secretary, or validating officer or authorized
signatory of the Company. 14. Notices, Where Sent.
All notices required to be given the Company and any statement in writing required to be furnished the Company shall include the number of this Guarantee and shall be
addressed to the Company at 2 First American Way. Bldg. 2, Santa Ana, CA. 92707.
Form No. 1282 (Rev. 12/15/95)