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HomeMy WebLinkAboutTitle InsuranceCOMMITMENT FOR TITLE INSURANCE Issued By Old Republic National Title Insurance Company SCHEDULE A Effective Date: November 11, 2013, 07:00 am Commitment No. , issued November 18, 2013,11:45 am 1. The policy or policies to be issued are: (a) OWNER'S POLICY OF TITLE INSURANCE (Form T-1) (Not applicable for improved one -to -four family residential real estate) Policy Amount: PROPOSED INSURED: (b) TEXAS RESIDENTIAL OWNER'S POLICY OF TITLE INSURANCE - ONE -TO -FOUR FAMILY RESIDENCES (Form T-IR) Policy Amount: PROPOSED INSURED: (c) LOAN POLICY OF TITLE INSURANCE (Form T-2) Policy Amount: S1,441,200.00 PROPOSED INSURED: The Bank & Trust of Bryan/College Station, and each successor in ownership of the indebtedness secured by the insured mortgage, except a successor who is an obligor under the provisions of Section 12 (c) of the Conditions and Stipulations. Proposed Borrower: BCS Development Company (d) TEXAS SHORT FORM RESIDENTIAL LOAN POLICY OF TITLE INSURANCE (Form T-211) Policy Amount: PROPOSED INSURED: Proposed Borrower: (e) LOAN TITLE POLICY BINDER ON INTERIM CONSTRUCTION LOAN (Form T-13) Binder Amount: PROPOSED INSURED: Proposed Borrower: (f) OTHER Policy Amount: PROPOSED INSURED: 2. The interest in the land covered by this Commitment is: Fee Simple 3. Record title to the land on the Effective Date appears to be vested in: BCS Development Company 4. Legal description of the land: All of that 75.07 acre tract or parcel of land, lying and being situated in the ROBERT STEVENSON SURVEY, ABSTRACT No. 54, College Station, Brazos County, Texas, and being part of the called 154 acre (net) tract describe in the deed from Florence A. Brown to Beverly J. Furrer, Patricia J. Vogel and Thomas L. Brown, Jr., as recorded in Volume 854, page 57, Official Records of Brazos County, Texas, and being also described as 158 acres in the deed from D. Brooks Cofer, Jr. and Don Dillon to Wayne A. Dunlap and Thomas L. Brown, recorded in Volume 283, page 382, Deed Records of Brazos County, Texas, said 75.07 acre tract being more particularly described as follows: COMMENCING at the centerline intersection of the existing pavement of Barron Road and Barron Cutoff Road, same being the supposed west corner of the beforementioned 158 acre tract; THENCE S 460 011 20" E along the centerline of the existing pavement of Barron Cutoff Road, same being the supposed southwest line of the beforementioned 158 acre tract for a distance of 360.56 feet to the PLACE OF BEGINNING of this description; FORM T-7: Commitment for Title fnsumoce Page 1 Continuation of Schedule A GF No. 28265 THENCE N 440 08' 27" E through the interior of the beforementioned 158 acre tract, at a distance of 24.4 feet, pass a 6" creosote post fence corner in the northeast line of Barron Cutoff Road marking the south corner of a 4.00 acre tract (cut out of the 158 acre tract) as described in Volume 1577, Page 136, of the Official Records of Brazos County, Texas, continue on along the southeast line of said 4.00 acre tract, adjacent to a fence, for a total distance of 369.78 feet to a 1/2" iron rod found (2ith cap) in the southwest right of way line of State Highway No. 40, from which a 1/2" iron found at a 4" creosote post fence corner marking the east icorner (now out in Eighway 40) of the 4.00 acre tract bears N 440 08' 27" E-173.70 feet; THENCE along the southwest and southerly right of way line of State Highway No. 40 (as described in the deed to the State of Texas as recorded in Volume 5884, Page 13, of the Official Records of Brazos County, Texas), as follows: S 49018' 34" E for a distance of 11.98 feet to a concrete monument with brass disc found, S 510 10'08" E for a distance of 134.68 feet to a concrete monument with brass disc found, S 530 31' 38" E for a distance of 213.41 feet to a concrete monument with brass disc found, S 570 40' 09" E for a distance of 213.41 feet to a concrete monument with brass disc found, S 610 07' 14" E for a distance of 142.29 feet to a concrete monument with brass disc found, S 650 57, 10" E for a distance of 355.54 feet to a concrete monument with brass disc found, S 720 21' 21" E for a distance of 21331 feet to a concrete monument with brass disc found, S 76014' 58" E for a distance of 142.09 feet to a concrete monument with brass disc found, S 800 20' 11" E for a distance of 141.96 feet to a concrete monument with brass disc found, S 850 33' 51" E for a distance of 212.50 feet to a concrete monument with brass disc found, S 870 43' 46" E for a distance of 351.65 feet to a concrete monument with brass disc found, S 880 57' 55" E for a distance of 269.72 feet to a concrete monument with brass disc found, S 89016' 51" E for a distance of 131.40 feet to a concrete monument with brass disc found, N 88015' 57" E. for a distance of 682.82 feet to the ;northeast line of the beforementioned 158 acre tract, from which a 112" iron rod found (with cap) bears N 88015' 57' E - 0.50 feet; THENCE S 460 02' 08" E along the northeast line of the beforementioned 158 acre tract, same being the southwest line of the 217.5 acre tract as recorded in Volume 2597, Page 186, of the Official Records of Brazos County, Texas, adjacent to a fence, for a distance of 397.32 feet to a crosstie fence corner marking the east corner of the 158 acre tract, same being the south corner of the 217.5 acre tract and same being in the northwest line of the called 316.0221 acre tract as recorded in Volume 3905, Page 55 of the Official Records of Brazos County, Texas. THENCE S 440 46' 50" W along the southeast line of the beforementioned 158 acre tract, same being the northwest line of the beforementioned 316.0221 acre tract, adjacent to a fence, for a distance of 2025.47 feet to a 1/2' iron rod found at a 4" creosote Tpost fence corner marking the occupied south corner of the 158 acre tract, same being the west corner of the 316.0221 acre tract and same being in .the nor beast line of the called 303.97 acre (202.65 acre net) tract described in Volume 4027, Page 29, of the Official Records of Brazos County, Texas, from which a 4" creosote post fence corner bears N 440 20' 14" E - 24.2 feet; THENCE N 450 56' 40" W along the common, occupied line between the beforementioned 148 acre tract and the beforementioned 303.97 acre tract, adjacent to a fence and nearly parallel with and approximately 24 feet FORMT-7: Commitment for Title Insurance IPage Continuation of Schedule A GF No. U265 southwest of another fence line, for a distance of 641.67 feet to a 1/2" iron rod found at a crosstie fence corner marking the north corner of the 303.97 acre tract in the southeast line of the Baker Estate - called 29.405 acre tract as recorded in Volume 2488, Page 64 of the Official Records of Brazos County, Texas, and Volume 223, Page 147 of the Deed Records of Brazos County, Texas; THENCE N 42' 16' 05" E along the southeast line of the beforementioned 29.405 acre tract, adjacent to a fence, for a distance of 23.02 feet to a crosstie fence corner marking the occupied east corner of the 29.405 acre tract; THENCE along the occupied southwest line of the beforementioned 158 acre tract, same being the northeast line of the beforementioned 29.405 acre tract and the northeast line of a 46.5' wide access strip (leading from Barron Cutoff Road to the 29.405 acre tract), adjacent to a fence, as follows: N 460 06' 50" W for a distance of 811.64 feet to a 4" creosote post fence corner marking the occupied north corner of the 29.405 acre tract, same being the occupied east comer of the 48.5' access strip, N 450 49' 16" W for a distance of 498.35 to a 2" cedar post fence angle point, N 440 29' 45" W for a distance of 415.43 to a 3" creosote post fence comer in the southeast line of Barron Cutoff Road marking the occupied north comer of the said access strip; THENCE N 460 01' 20" W continuing along there -constructed southwest line of the beforementioned 158 acre tract, along the centerline of the existing pavement of Barron Cutoff Road (and it's southward projection) for a distance of 668.21 feet to the PLACE OF BEGINNING, containing 75.07 acres; of land, more or less, of which 0.41 acre lies within. Barron Cutoff Road. Note: The Company is prohibited from insuring the area or quantity of the land described herein. Any statement in the above legal description of the area of land is not a representation that such area or quantity is correct, but made only for informational and/or Identification purposes and does nor override Item No. 2 Schedule B hereof. FORM T-7: Commitment for Title Insumnee Page 3 COMMPTMENT FOR TITLE INSURANCE Issued By Old Republic National Title Insurance Company EXCEPTIONS FROM COVERAGE In addition to the Exclusions and Conditions and Stipulations, your Policy will not cover loss, costs, attorneys' fees, and expenses resulting from: L b wEeep` ea 2. Any discrepancies, conflicts, or shortages in area or boundary lines, or any encroachments or protrusions, or any overlapping of improvements. Company has approved the current land title survey and upon request, and payment of any promulgated premium, this item will be amended in the policy(ies) to he issued to read: 'shortages in area'. 3. Homestead or community property or survivorship rights, if any, of any spouse of any insured. (Applies to the Owner's Policy only.) 1 4. Any titles or rights asserted by anyone, including, but not limited to, persons, the public, corporations, governments or other entities, a. to tidelands, or lands comprising the shores or beds of navigable or perennial rivers and streams, lakes, bays, gulfs or oceans, or b. to lands beyond the line of harbor or bulkhead lines as established or changed by any government, or C. to filled -in lands, or artificial islands, or d. to statutory water rights, including riparian rights, or e. to the area extending from the line of mean low tide to the line of vegetation, or the rights of access to that area or easement along and across that area. (Applies to the Owner's Policy only.) 5. Standby fees, taxes and assessments by any taxing authority for the year 2012, and subsequent years; and subsequent taxes and assessments by any taxing authority for prior years due to change in land usage or ownership, but not those taxes or assessments for prior years because of an exemption granted to a previous owner of the property under Section 11.13, Texas Tax Code, or because of improvements not assessed for a previous tax year. (If Texas Short Form Residential Loan Policy (T-2R) is issued, that policy will substitute "which become due and payable subsequent to Date of Policy" in lieu of "for the year and subsequent years.") 6. The terms and conditions of the documents creating your interest in the land. 7. Materials furnished or labor performed in connection with planned construction before signing and delivering the lien document described in Schedule A, if the land is part of the homestead. of the owner. (Applies to the Loan Title Policy Binder on Interim Construction Loan only, and may be deleted if satisfactory evidence is furnished to us before a binder is issued.) 8. Liens and leases that affect the title to the land, but that are subordinate to the lien of the insured mortgage. (Applies to Loan Policy (T-2) only.) FORr1 T-7: Commitment for Title Insurance I Page 4 Continuation of Schedule B GF No. 28265 i 9. The Exceptions from Coverage and Express Insurance in Schedule B of the Texas Short Form Residential Loan Policy (T-2R). (Applies to Texas Short Form Residential Loan Policy (T-2R) only. Separate exceptions 1 through 8 of this Schedule B do not apply to the Texas Short Form Residential Loan Policy (T-2R). 10. The following matters and all terms of the documents creating or offering evidence of the matters (We must insert matters or delete this exception.): a_ Any easement that may affect the property, such as roadways, sewer, telephone, water and/or telephone and electrical lines. i b. Any portion of subject property lying within the boundaries of a public or private roadway whether dedicated or not, including a 0.41 acre portion of land lying in the Barron Cut -Off Road right-of-way, as shown on a survey made under the supervision of S. M. Kling; R.P.L.S. No. 2003, dated June, 2003. I C. This policy does not cover any claim or rights in and to any portion of subject property lying between the fence and the property line on the upper and lower southwesterly portions of the tract as shown on survey dated June, 2003 prepared by S. M. Kling, R.P.L.S. No. 2003. d. Abandoned well pad in the westerly portion of the tract, as shown and noted on survey dated June, 2003 prepared by S. M. Kling, R.P.L.S. No. 2003. e. Easement for pipe lines as shown in instrument from W. S. Barron and Verna F. Barron to Sinclair Refuting Company, dated October 6, 1947 and recorded in Volume 132, page 123, Deed Records of Brazos County, Texas. f. Easement for water pipe lines as shown in instrument from Wayne A. Dunlap and Thomas L. Brown to Wellborn Water Supply Corporation, dated January 12, 1972 and recorded, in Volume 303, page 296, Deed Records of Brazos County, Texas. i g. Easement for electric transmission as shown in instrument from Wayne A. Dunlap and Thomas L. Brown to City of Bryan, Texas, dated February 19, 1976 and recorded in Volume 350, page 130, Deed Records of Brazos County, Texas. h. Easement for electric transmission as shown in instrument from Wayne A. Dunlap and Thomas L. Brown to City of Bryan, Texas; dated March 31, 1981 and recorded in Volume 479, page 267, Deed Records of Brazos County, Texas. i. Easement for pipe lines as shown in instrument from WaynelA. Dunlap and Thomas L. Brown to Producers Gas Company, dated July 27, 1981 and recorded in Volume 534, page 88, Deed Records of Brazos County, Texas and partially released in instrument dated January 16, 2013 and recorded in Volume 11138, page 38 of the Official Public Records of Brazos County, Texas. j. Assignment from Lear Petroleum Corporation, BP Gas Transmission Company, and BP Gas Gathering Company to Hanover Energy, Inc., dated September 21, 1988, recorded in Volume 1076, page 304, Official Records of Brazos County, Texas. k. Assignment from Hanover Energy, Inc. to Southwestern Gas Pipeline, Inc., dated February 28, 1989, recorded in Volume 1135, page 473, Official Records of Brazos County, Texas. Easement for telephone communicationsas shown in instrument from Wayne Dunlap, Beverly J. Furrer, Patricia J. Vogel, and Thomas L. Brown, Jr. to Williams Communications, Inc., dated August 10, 1999 and recorded in Volume 3621, page 334, Official Records of Brazos County, Texas. FORM T-7: Commitment for Title Insurance _ Page 5 Continuation of Schedule B GF No. 28265 i in. Easement for telephone communications as shown in instrument from Wayne Dunlap, Beverly J. Furrer, Patricia J. Vogel, and Thomas L. Brown, Jr. to Williams Communications, Inc., dated August 23, 1999 and recorded in Volume 3621, page 341, Official Records of Brazos County, Texas. n. Easement for telephone communications as shown in instrument from Wayne Dunlap, Beverly J. Furrer, Patricia J. Vogel, and Thomas L. Brown, Jr. to Williams Communications, Inc., dated August 30, 1999 and recorded in Volume 3621, page 345, Official Records of Brazos County, Texas. o. Easement for telephone communications as shown in instrument from Wayne Dunlap, Beverly J. Furrer, Patricia J. Vogel, and Thomas L. Brown, Jr. to Williams Communications, Inc., dated August 19, 1999 and recorded in Volume 3622, page 1, Official Records of Brazos County, Texas. p. Temporary Easement as set out in instrument from Wayne Dunlap, Beverly J. Furrer, Patricia J. Vogel, and Thomas L. Brown, Jr. to The State of Texas„ dated April 19, 2004 and recorded in Volume 6060, page 109, Official Records of Brazos County, Texas. I q. Easement granted to City of College Station, Texas by BCS Development Company as set out in instrument dated August 20, 2007, recorded in Volume 8250, Page 105 of the Official Public Records of Brazos County, Texas. I r. Groundwater Rights Warranty Deed dated September 4, 2012 from BCS Development Company to DWP Mineral and Water Interests, LLC as set in instrument recorded in Volume 10903, Page 242 of the Official Public Records of Brazos County, Texas and all terms, conditions and stipulations contained therein. Title to these rights haS not been investigated subsequent to date thereof. i S. Royalty interest in the oil, gas and other minerals in and under the herein described property reserved in deed from Verna F. Barron to James L. Gilliam dated August 15, 1957, recorded in Volume 183, page 569, Deed Records of Brazos County, Texas. Title to this interest not investigated subsequent to date of said instrument. t. Estate created by oil, gas and mineral lease granted to Colonial Royalties Company by B. J. Carter and wife, Jerry Carter in instrument dated April 3,1962 and recorded in Volume 16, page 583 of the Oil, Gas and Mineral Lease Records of Brazos County, Texas, and all terms, conditions and stipulations contained therein. Title to this lease has not been investigated subsequent to date thereof. U. Estate created by oil, gas and mineral lease granted to Jack W. Lester, Sr. by Wayne A. Dunlap and Thomas L. Brown in instrument dated June 1,1970 and recorded in Volume 21, page 333 of the Oil, Gas and Mineral Lease Records of Brazos County, Texas, and all terms, conditions and stipulations contained therein. Title to this lease has not been investigated subsequent to date thereof. i V. Estate created by oil, gas and mineral lease granted to Cities Service Company by Thomas L. Brown in instrument dated October 20, 1976 and recorded in Volume 24, page 385 of the Oil, Gas and Mineral Lease Records of Brazos County, Texas, and all terms, conditions ;and stipulations contained therein. Title to this lease has not been investigated subsequent to date thereof. j i W. Estate created by oil, gas and mineral lease granted to CitiesjService Company by Wayne A. Dunlap and Jill Mary Dunlap in instrument dated October 20,1976 and recorded in Volume 24, page 517 of the Oil, Gas and Mineral Lease Records of Brazos County, Texas, and all terms, conditions and stipulations contained therein.. Title to this lease has not been investigated subsequent to date thereof. X. Estate created by oil, gas and mineral lease granted to Commadore Oil & Gas, Inc. by Wayne A. Dunlap and Jill Mary Dunlap in instrument dated July 5, 1983 and recorded in Volume 89, page 533 of the Oil, Gas and Mineral Lease Records of Brazos County, Texas, and all terms, conditions and stipulations contained therein. Title to this Iease has not been investigated subsequent to date thereof. I I FORM T-7: Commitment for Title Insurance I Page 6 Continuation of Schedule B GF No. 28265 I Y. Estate created by oil, gas and 'mineral lease granted to Edco Energy, Inc. by Ronald Furrer and Beverly Furrer in instrument dated October 21,1991 and recorded ink Volume 1379, page 90 of the Official Records of Brazos County, Texas, and all terms, conditions and stipulations contained therein. Title to this lease has not been investigated subsequent to date thereof. Z. Estate created by oil, gas and mineral lease granted to Edcoll Energy, Inc. by Thomas L. Brown and Crystal Brown in instrument dated October 21, 1991 and recorded in Volume 1393, page 184 of the Official Records of Brazos County, Texas, and all terms, conditions and stipulations contained therein. Title to this lease has not been investigated subsequent to date thereof. as. Estate created by oil, gas and mineral lease granted to Edco Energy, Inc. by Rayne A. Dunlap and Till Mary Dunlap in instrument dated October 21,1991 and recorded in Volume 1674, page 156 of the Official Records of Brazos County, Texas, and all terms, conditions and stipulations contained therein. Title to this lease has not been investigated subsequent to date thereof i bb. Estate created by oil, gas and mineral lease granted to Edco Energy, Inc. by Richard F. Vogel and Patricia J. Vogel in instrument dated October 21,1991 and recorded in Volume 1674, page 161 of the Official Records of Brazos County, Texas, and all terms, conditions and stipulations contained therein. Title to this lease has not been investigated subsequent to date thereof. I CC. Rights of parties in possession. FORM T-7: Commitment for Mile Insurance I Page 7 COMMITMENT FOR TITLE INSURANCE Issued By Old Republic National Title Insurance Company SCHEDULE C Your Policy will not cover loss, costs, attorneys' fees, and expenses resulting from the following requirements that will appear as Exceptions in Schedule B of the Policy, unless you dispose of these matters to our satisfaction, before the date the Policy is issued: 1. Documents creating your title or interest must be approved by us and must be signed, notarized and filed for record 2. Satisfactory evidence must be provided that: I a. no person occupying the land claims any interest in that land against the persons named in paragraph 3 of Schedule A, i b. all standby fees, taxes, assessments and charges against the property have been paid, I a all improvements or repairs to the property are completed and accepted by the owner, and that all contractors, subcontractors, laborers and suppliers have been fully paid, and that no mechanic's, laborer's or materiahnen's liens have attached to the property, I d. there is legal right of access to and from the land, I e. (on a Loan Policy only) restrictions have not been and will not be violated that affect the validity and priority of the insured mortgage. 3. You must pay the seller or borrower the agreed amount for your property or interest. 4. Any defect, lien or other matter that may affect title to the land or interest insured, that arises or is filed after the effective date of this Commitment. I 5. We require a transfer of the lien as set out in the Deed of Trust from BCS Development to Wayne Dunlap, Beverly Furrer, Patricia Vogel and Thomas L. Brown, Jr. recorded in Volume 7088, page 252 of the Official Public Records of Brazos County, Texas. Transferee to be Bank & Trust of Bryan/College Station. Said Deed of Trust has been partially released as to 16.754 acres as set out in Release of Lien datedlOctober 17, 2011 and recorded in Volume 10433, Page 227 of the Official Public Records of Brazos County, Texas. 6. Deed of Trust dated October 17, 2011 from BCS Development Company to Ivan M. Olson, Trustee, securing the payment of one note of even date therewith in the principal sum of $1,441,200.00, and any other amounts payable under the terms thereof, payable to The Bank & Trust of Bryan/College Station, filed for record with the County Clerk of Brazos County, Texas, on October 18, 2011, recorded in Volume 10379, page 29 of the Official Public Records of Brazos County, Texas. 7. Extension of Real Estate Note and Lien in instrument dated April30, 2013, recorded in Volume 11363, page 268, Official Public Records, Brazos County, Texas, between BCS Development Company and The Bank & Trust of Bryan/College Station. I I S. Extension of Real Estate Note and Lien in instrument dated July 30, 2013, recorded in Volume 11580, page 11, Official Public Records, Brazos County, Texas, between BCS Development Company and The Bank & Trust of Bryan/College Station. I Countersigned I Aggieland Title Company -- {-- Byl!/J� arm i• ORM T-7: Commitment for Title Insurance ! Page 8 I COMMITMENT FOR TITLE INSURANCE i SCFIEDULE D GF No. 28265 I, Effective Date: November 11, 2013, 07:00 am Pursuant to the requirements of Rule P-21, Basic Manual of Rules, Rates and Forms for the writing of Title Insurance in the State of Texas, the following disclosures are made: 1. The following individuals are directors and/or officers, as indicated, of the Title Insurance Company issuing this Commitment DIRECTORS OF OLD REPUBLIC NATIONAL TITLE INSURANCE COMPANY HARRINGTON BISCHOF DENNIS P. VAN MIEGHEM JOHN M. DIXON JAMES A. KELLOGG JAWS HELLAUER RANDE K. YEAGER ARNOLD L. STEINER CHARLES F. TITTERTON A. C. ZUCARO LEOiE. KNIGHT, JR STEVE R. WALKER FREDERICKA TAUBITZ I OFFICERS OF OLD REPUBLIC NATIONAL TITLE INSURANCE COMPANY MARK BILBREY, President RANDE K. YEAGER, Chairman and CEO GARY J. HORN, Executive Vice President MARK M. BUDZINSKI, Executive Vice President R. WAYNE SHUPE, Executive Vice President PATRICK A. CONNOR, Executive Vice President CHERYL JONES, Executive Vice President MIKE TARPEY, Vice President, Treasurer CHARLES KOVALESKI, Executive Vice President ROBkERT J. CHAPMAN, Executive Vice President STEPHEN C. WILSON, Executive Vice President, Vice DAlyIEL M WOLD, Sr. Vice President, Secretary, Chairman General Council JOHN A. MAGNESS, Executive Vice President I Shareholders owning, controlling or holding, either personally or beneficially, 10% or more of the shares of Old Republic National Title Insurance Company as the last day of the year preceding the date herein above set forth are as follows: Old Republic National Title Insurance Company-100% , a wholly owned subsidiary of Old Republic Title Insurance Group, Inc., a wholly owned subsidiary of Old Republic International Corporation. 2. The following disclosures are made by the Title Insurance Agent issuing this Commitment Aggieland Title Company Owners Directors Officers Page D. Thornton Page D. Thornton Page D. Thornton, President J. Fred Bayliss Page D. Thornton, Secretary Page D. Thornton, Treasurer Page D. Thornton, Office Manager i Tebbi S. Mayes, Office Co -Manager 3. You are entitled to receive advance disclosure of settlement charges in connection with the proposed transaction to which this commitment relates. Upon your request, such disclosure will be made to you. Additionally, the name of any person, firm or corporation receiving a portion of the premium from the settlement of this transaction will be disclosed on the closing or settlement statement. You are further advised that the estimated title premium is: Owner's Policy S0.00 Loan Policy S7,178.80 Endorsement Charges $75.00 Other S0.00 Total 1 $7,253.80 Of this total amount: 15% will be paid to the policy issuing Title Insurance Company: 85% will be retained by the issuing Title Insurance Agent; and the remainder of the estimated premium will be paid to other parties as follows: Amount To Whom For Services i " The estimated premium is based upon information furnished to us as of the date of this Commitment for Title Insurance. Final determination of the amount of the premium will be made at closing in accordance with the Rules and Regulations adopted by the Commissioner of Insurance." it FORM T-7: Commitment for Tide Insurance Page 1 DELETION OF ARBITRATION PRO VISION (Not applicable to the Texas Residential Owner's Policy) Arbitration is a common form of alternative dispute resolution. It can be a quicker and cheaper means to settle a dispute with your Title Insurance Company. However, if you agree to arbitrate, you give up your right to take the Title Company to court and your rights to discovery of evidence may be limited in the arbitration process. In addition, you cannot usually appeal an arbitrator's award. Your policy contains an arbitration provision (shown below). It allows you or the Company to require arbitration if the amount of insurance is $2,000,000 or less. If you want to retain your right to sue the Company in case of a dispute over a claim, you must request deletion of the arbitration provision before the policy is issued. You can do this by signing this form and returning it to the Company at or before the closing of your real estate transaction or by writing to the ComiIany. The arbitration provision in the Policy is as follows: "Either the Company or the Insured may demand that the claim or controversy shall be submitted to arbitration pursuant to the Title Insurance Arbitration Rules of the American Land Title Association ("Rules"). Except as provided in the Rules, there shall be no joinder or consolidation with claims or controversies of other persons. Arbitrable matters may include, but are not limited to, any controversy or claim between the Company and the Insured arising out of or relating to this policy, any service in connection with its issuance or the breach of a policy provision, or to any other controversy or claim arising out of the transaction giving rise to this policy. All arbitrable matters when the Amount of Insurance is $2,000,000 of less shall be arbitrated at the option of either the Company or the Insured, unless the Insured is an individual p' erson (as distinguished from an Entity). All arbitrable matters when the Amount of Insurance is in excess of $2,000,000 shall be arbitrated only when agreed to by both the Company and the Insured. Arbitration pursuant !to this policy and under the Rules shall be binding upon the parties. Judgment upon the award rendered by the Arbitrator(s) may be entered in any court of competent jurisdiction." SIGNATURE DATE FORM T-7: Commitment for Title Insurance I Page 1