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HomeMy WebLinkAboutTitle InsuranceOCHICAGO TITLE INSURANCE COMPANY TEXAS TITLE INSURANCE INFORMATION Title Insurance insures you against loss resulting from El seguro de titulo le asegura en relacion a certain risks to your title. perdidas resultantes de ciertos riesgos que pueden The Commitment for Title Insurance is the Title afectar el titulo de su propiedad. Insurance Company's promise to issue the Title El Compromiso para Seguro de Titulo es la promesa de la Insurance Policy. The Commitment is a legal document. compania aseguradora de titulos de emitir la polizade You should review it carefully to completely seguro de titulo. El Compromiso es un documento legal. understand it before your closing date. Usted debe leerlo cuidadosamente y entenderlo complemente antes de In fecha Para finalizarso transaccion. Your Commitment for Title Insurance is a legal contract between you and us. The Commitment is not an opinion or report of your title. It is a contract to issue you a Policy subject to the Commitment's terms and requirements. Before issuing a Commitment for Title Insurance (the Commitment) or a Title Insurance Policy (the Policy), the Title Insurance Company (the Company) determines whether the title is insurable. This determination has already been made. Part of that determination involves the Company's decision to insure the title except for certain risks that will not be covered by the Policy. Some of these risks are listed in Schedule B of the attached Commitment as Exceptions. Other risks are stated in the Policy as Exclusions. These risks will not be covered by the Policy. The Policy is not an abstract of title nor does a Company have an obligation to determine the ownership of any mineral interest. ---MINERALS AND MINERAL RIGHTS may not be covered by the Policy. The Company may be unwilling to insure title unless there is an exclusion or an exception as to Minerals and Mineral Rights in the Policy. Optional endorsements insuring certain risks involving minerals, and the use of improvements (excluding lawns, shrubbery and trees) and permanent buildings may be available for purchase. Neither this Policy, nor the optional endorsements, insure that the purchaser has title to the mineral rights related to the surface estate. Another part of the determination involves whether the promise to insure is conditioned upon certain requirements being met. Schedule C of the Commitment lists these requirements that must be satisfied or the Company will refuse to cover them. You may want to discuss any matters shown in Schedules B and C of the Commitment with an attorney. These matters will affect your title and your use of the land. When your Policy is issued, the coverage will be limited by the Policy's Exception, Exclusions and Conditions, defined below. EXCEPTIONS are title risks that a Policy generally covers but does not cover in a particular instance. Exceptions are shown on Schedule B or discussed in Schedule C of the Commitment. They can also be added if you do not comply with the Conditions section of the Commitment. When the Policy is issued, all Exceptions will be on Schedule B of the Policy. ---EXCLUSIONS are title risks that a Policy generally does not cover. Exclusions are contained in the Policy but not shown or discussed in the Commitment. ---CONDITIONS are additional provisions that qualify or limit your coverage. Conditions include your responsibilities and those of the Company. They are contained in the Policy but not shown or discussed in the Commitment. The Policy Conditions are not the same as the Commitment Conditions. You can get a copy of the policy form approved by the Texas Department of Insurance by calling Chicago Title Insurance Company at 1-800-442-4303 or by calling the title insurance agent that issued the Commitment. The Texas Department of Insurance may revise the policy form from time to time. You can also get a brochure that explains the Policy from the Texas Department of Insurance by calling 1-800-252- 3439. Form No. 72C13443 (11/2009) Commitment For Title Insurance (T-7) Before the Policy is issued, you may request changes in the Policy. Some of the changes to consider are: ---Request amendment of the "area and boundary" exception (Schedule B, paragraph 2). To get this amendment, you must furnish a survey and comply with other requirements of the Company. On the Owner's Policy, you must pay an additional premium for the amendment. If the survey is acceptable to the Company and if the Company's other requirements are met, your Policy will insure you against loss because of discrepancies or conflicts in boundary lines, encroachments or protrusions, or overlapping of improvements. The Company may then decide not to insure against specific boundary or survey problems by making special exceptions in the Policy. Whether or not you request amendment of the "area and boundary" exception, you should determine whether you want to purchase and review a survey if a survey is not being provided to you. ---Allow the Company to add an exception to "rights of parties in possession." If you refuse this exception, the Company or the title insurance agent may inspect the property. The Company may except to and not insure you against the rights of specific persons, such as renters, adverse owners or easement holders who occupy the land. The Company may charge you for the inspection. If you want to make your own inspection, you must sign a Waiver of Inspection form and allow the Company to add this exception to your Policy. The entire premium for a Policy must be paid when the Policy is issued. You will not owe any additional premiums unless you want to increase your coverage at a later date and the Company agrees to add an Increased Value Endorsement. Form No. 72C 13443 (11/2009) Commitment For Title Insurance (T-7) DELETION OF ARBITRATION PROVISION (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 Company. 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 or less shall be arbitrated at the option of either the Company or the Insured, unless the Insured is an individual person (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 No. 72C 13443 (11/2009) Commitment For Title Irrsurance (T-7) Fidelity National Financial, Inc. Privacy Statement Fidelity National Financial, Inc. and its subsidiaries ("FNF") respect the privacy and security of your non-public personal information ("Personal Information") and protecting your Personal Information is one of our top priorities. This Privacy Statement explains FNF's privacy practices, including how we use the Personal Information we receive from you and from other specified sources, and to whom it may be disclosed. FNF follows the privacy practices described in this Privacy Statement and, depending on the business performed, FNF companies may share information as described herein. Personal Information Collected We may collect Personal Information about you from the following sources: • Information we receive from you on applications or other forms, such as your name, address, social security number, tax identification number, asset information, and income information; • Information we receive from you through our Internet websites, such as your name, address, email address, Internet Protocol address, the website links you used to get to our websites, mid your activity while using or reviewing our websites; • Information about your transactions with or services performed by us, our affiliates, or others, such as information concerning your policy, premiums, payment history, information about your home or other real property, information from lenders and other third parties involved in such transaction, account balances, and credit card information; and • Information we receive from consumer or other reporting agencies and publicly recorded documents. Disclosure of Personal Information We may provide your Personal Information (excluding information we receive from consumer or other credit reporting agencies) to various individuals and companies, as permitted by law, without obtaining your prior authorization. Such laws do not allow consumers to restrict these disclosures. Disclosures may include, without limitation, the following: • To insurance agents, brokers, representatives, support organizations, or others to provide you with services you have requested, and to enable us to detect or prevent criminal activity, fraud, material misrepresentation, or nondisclosure in connection with an insurance transaction; • To third -party contractors or service providers for the purpose of determining your eligibility for an insurance benefit or payment and/or providing you with services you have requested; • To an insurance regulatory authority, or a law enforcement or other governmental authority, in a civil action, in connection with a subpoena or a governmental investigation; • To companies that perform marketing services on our behalf or to other financial institutions with which we havejoint marketing agreements; and/or • To lenders, lien holders, judgment creditors, or other parties claiming an encumbrance or an interest in title whose claim or interest must be determined, settled, paid or released prior to a title or escrow closing. We may also disclose your Personal Information to others when we believe, in good faith, that such disclosure is reasonably necessary to comply with the lawor to protect the safety of our customers, employees, car property and/or to comply with a judicial proceeding, court order or legal process. Disclosure to Affiliated Companies - We are permitted by law to share your name, address and facts about your transaction with other FNF companies, such as insurance companies, agents, and other real estate service providers to provide you with services you have requested, for marketing or product development research, or to market products or services to you. We do not, however, disclose information we collect from consumer or credit reporting agencies with our affiliates or others without your consent, in conformity with applicable law, unless such disclosure is otherwise permitted by Inv. Disclosure to Nonaffiliated Third Parties - We do not disclose Personal Information about our customers or former customers to nonaffiliated third parties, except as outlined herein or as otherwise permitted by law. Confidentiality and Security of Personal Information We restrict access to Personal Information about you to those employees who need to know that information to provide products or services to you. We maintain physical, electronic, and procedural safeguards that comply with federal regulations to guard Personal Information. Access to Personal Information/ Requests for Correction, Amendment, or Deletion of Personal Information As required by applicable law, we will afford you the right to access your Personal Information, under certain circumstances to fmd out to whom your Personal Information has been disclosed, and request correction or deletion of your Personal Information. However, FNF's current policy is to maintain customers' Personal Information for no less than your state's required record retention requirements for the ourpose of handling future coverage claims. For your protection, all requests made under this section must be in writiny and most include your notarized signature to establish your identity Where permitted by lav, we may charge a reasonable fee to cover the costs incur red in responding to such requests. Please send requests to: ChiefPrivacy Officer Fidelity National Financial, Inc. 601 River side Avenue Jacksonville, FL 32204 Changes to this Privacy Statement This Privacy Statement may be amended from time to time consistent with applicable privacy laws. When we amend this Privacy Statement, we will post a notice of such changes on our website. The effective date of this Privacy Statement, as stated above, indicates the last time this Privacy Statement was revised or materially changed. Form No. 72C 13443 (1112009) Commitment For Title Insurance (T-7) COMMITMENT FOR TITLE INSURANCE Issued By Chicago Title Insurance Company SCHEDULE A Effective Date: March 19, 2012, 8:00 am GFNo. 1911717113 Issued: April 13, 2012, 8:00 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: $2,601,988.70 PROPOSED INSURED: FFC Equity Holdings, LP or assigns (b) TEXAS RESIDENTIAL OWNER'S POLICY OF TITLE INSURANCE - ONE -TO -FOUR FAMILY RESIDENCES (Form T-lR) Policy Amount: PROPOSED INSURED: (c) LOAN POLICY OF TITLE INSURANCE (Form T-2) Policy Amount: PROPOSED INSURED: Proposed Borrower: FFC Equity Holdings, LP or assigns (d) TEXAS SHORT FORM RESIDENTIAL LOAN POLICY OF TITLE INSURANCE (Form T-2R) 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: Lieven J. Van Riet, Trustee 4. Legal description of the land: TRACT I: Being all of that certain tract or parcel of land containing 31.286 acres, lying and being situated in the James Erwin Survey, A-119, Brazos County, Texas and being part of the 208.523 acre tract described in the deed from Bandura Corporation to Indivi 16.011 acre tract conveyed to Indiviso Corporation recorded in Volume 3812, Page 320 of the Official Records of Brazos County (O.R.B.C.) and being more particularly described by metes and bounds attached hereto. TRACT II: Being all of that certain tract or parcel of land containing 116.352 acres, lying and being situated in the James Erwin Survey, A-119, Brazos County, Texas and being part of the 208.523 acre tract described in the deed from Bandura Corporation to Indivi 16.011 acre tract conveyed to Indiviso Corporation recorded in Volume 3812, Page 320 of the Official Records of Brazos County (O.R.B.C.) and being more particularly described by metes and bounds attached hereto. NOTE: This Company does not represent that the above square footage and/or acreage amounts are correct. FORM T-7: Commitment for Title Insurance Page I COMMITMENT FOR TITLE INSURANCE Issued By Chicago Title Insurance Company SCHEDULE B 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: 1. `tufallowing-restrictive-covemaMs-ofTuumo litemize d-below-tWe-must-eitherinsertNpcuific-recording-data-or-delete-this exception). 2. Any discrepancies, conflicts, or shortages in area or boundary lines, or any encroachments or protrusions, or any overlapping ofimprovements. 3. Homestead or community property or survivorship rights, if any, of any spouse of any insured. (Applies to the Owner's Policy only.) 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 2011, 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.) 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 I through 8 of this Schedule B do not apply to the Texas Short Form Residential Loan Policy (T-2R). FORM T-7: Commitment for Title Insurance Page 2 Continuation of Schedule B GFNo. 1911717113 in. Lease for coal, lignite, oil, gas or other minerals, together with rights incident thereto, dated March 11, 1994, by and between Magdalen Hanley, Individually and as Independent Executrix of Estate of John Hanley, Jr., Deceased and as Trustee under the will of John Hanley, Jr., Deceased, as Lessor, and Baker Exploration Company, as Lessee, recorded on March 28,1994, in Volume 2068, Page 157 of the Official Records of Brazos County, Texas. Reference to which instrument is here made for particulars. No further search for title has been made as to the interest evidenced by this instrument, and the Company makes no representation as to the ownership or holder of such interest. n. Surface waiver executed by Lillian J. Kurz, John Hanley, Individually and as Co -Trustee of the L.J. Kurz Trust No. 2, William IIanley, Thomas Hanley, and Robert Thomas Colimer, Co -Trustee of the L.J. Kurz Trust No. 2, dated April 12, 2000, recorded in Volume 3783, Page 191, Official Records of Brazos County, Texas. Reference to which instrument is here made for particulars. No further search of title has been made as to the interests evidenced by this instrument, and the Company makes no representation as to the ownership or holder of such interest. o. Designation of Unit (Kurz No. 1) executed by United Oil & Minerals, Inc. and Threshold Exploration, Inc., dated September 24, 1991, recorded in Volume 1355, Page 23; amended by instrument recorded in Volume 1365, Page 255; amended by instrument recorded in Volume 2311, Page 80, all of the Official Records of Brazos County, Texas. Reference to which instrument is here made for particulars. No further search of title has been made as to the interest evidenced by this instrument, and the Company makes no representation as to the ownership or holder of such interest. P. The Company shall have no liability for, nor responsibility to defend, any part of the property described herein against any right, title, interest or claim (valid or invalid) of any character had or asserted by the State of Texas or by any other government or governmental authority or by the public generally in or to any portions of the herein described property that may be within the bed of Hopes Creek or any easement along or abutting the same; or any filled in portion thereof, artificial island therein, riparian or littoral rights pertaining thereto, and any areas affected by changes thereof due to erosion, evulsion or accretion. q. Survey prepared December 6, 2011, by Kevin R. McClure, R.P.L.S. No. 5650, reflects the following matters: 1.) Part of a 210 feet Private Drainage Easement situated along the Southerly property line of Tract I, as shown on the Final Plat of Great Oaks Subdivision recorded in Volume 4150, Page 295, of the Official Records of Brazos County, Texas. 2.) Encroachment and/or overlap of fences over and across the subject property. 3.) Wellborn Water Supply Corp. water line traversing the subject property, with no easement of record. 4.) Guy anchors located in four separate locations along the Northerly property line of Tract II. 5.) Abandoned pipeline as marked on the ground traversing the subject property, together with abandoned oil well pad as shown thereon. FORM T-7: Commitment for Title Insurance Page 4 COMMITMENT FOR TITLE INSURANCE Issued By Chicago 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: 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: a. no person occupying the land claims any interest in that land against the persons named in paragraph 3 of Schedule A, b. all standby fees, taxes, assessments and charges against the property have been paid, C. 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 materialmen's liens have attached to the property, d. there is legal right of access to and from the land, 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. 5. We find no outstanding liens of record affecting the subject property. Inquiry should be made concerning the existence of any unrecorded lien(s) or other indebtedness which could rise to any security interest claim in the subject property. 6. We must be furnished the marital status of the record owner(s), from the date of acquisition to the present time. If the record owner(s) is/are married, we require either (i) the joinder of the spouse; or (ii) an affidavit from the spouse of the owner disclaiming the property as part of any homestead and stating that the property is under the sole management and control of the record owner(s). FORM T-7: Commihnent for Title Insurance Page 5 COMMITMENT FOR TITLE INSURANCE SCHEDULED GFNo. 1911717113 Effective Date: March 19, 2012, 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: I. The following individuals are directors and/or officers, as indicated, of the Title Insurance Company issuing this Commitment Officers: President Executive Vice Pres i dent Secretary Treasurer Raymond Randall Quirk Anthony John Park Michael Louis Gravel le Daniel Kennedy Murphy Directors: Christopher Abbi nante, Erika Meinhardt Raymond Randall Quirk Roger Scott Jewkes Anthony John Park Theodore L. Kessner John Arthur Wunderlich Fidelity National Financial, Inc. owns 100%of Fidelity National Title Group, Inc., which owns 100%of Chicago Title and Trust Company, which owns 100% of Chicago Title Insurance Company. 2. As to StarTex Title Company, LLC (Title Insurance Agent), the following disclosures are made: If Agent is a corporation, the shareholders owning or controlling, directly or indirectly I% or more of the shares of Agent as of the last day of the year preceding the date hereinabove set forth are as follows (or owning or controlling 10% or more of an entity that owns 1% or more of the Agent) StarTex Title Holdings, LLC - 55% and Stewart Title Company - 45% Individuals, firms, partnerships, associations, corporations, trusts or other entities owning 10% or more of those entities referred to in item no. 13-1 hereinabove as of the last day of the year preceding the date hereinabove set forth are as follows: StarTex Title Holdings, LLC - Sid W. Terry - 66.67%; Albert Butler - 33.33%, and Stewart Title Guaranty Company 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 Loan Policy Endorsement Charges Other Total $12,461.00 $100.00 $0.00 $0.00 $12,561.00 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 " '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." FORM T-7: Corn ninnent for Title Insurance Page 6 TEXAS TITLE INSURANCE INFORMATION Title insurance insures you against loss resulting from certain risks El seguro de titulo le asegura en relaci6n a perdidas resultantes de to your title. clerics riesgos que pueden afectar el titulo de so propriedad. The commitment for Title Insurance is the title insurance company's El Compromiso para Seguro de Titulo es Is promesa de In compania promise to issue the title insurance policy. The commitment is a aseguradora de titulos de emitir In p6liza de seguro de titulo. El legal document. You should review it carefully to completely Compromiso es un documento legal. Usted debe leerlo understand it before your closing date. cuidadosamente y endenterlo complemente antes de In fecha para finalizar so transacci6n. Your Commitment of Title insurance is a legal contract between you and us. The Commitment is not an opinion or report of your title. It is a contract to issue you a policy subject to the Commitment's terms and requirements. Before issuing a Commitment for Title insurance (the Commitment) or a Title Insurance Policy (the Policy), the Title Insurance Company (the Company) determines whether the title is insurable. This determination has already been made. Part of that determination involves the Company's decision to insure the title except for certain risks that will not be covered by the Policy. Some of these risks are listed in Schedule B of the attached Commitment as Exceptions. Other risks are stated in the Policy as Exclusions. These risks will not be covered by the Policy. The Policy is not an abstract of title nor does a Company have an obligation to determine the ownership of any mineral interest. ---MINERALS AND MINERAL RIGHTS may not be covered by the Policy. The Company may be unwilling to insure title unless there is an exclusion or an exception as to Minerals and Mineral Rights in the Policy. Optional endorsements insuring certain risks involving minerals, and the use of improvements (excluding lawns, shrubbery and trees) and permanent buildings may be available for purchase. If the title insurer issues the title policy with an exclusion or exception to the minerals and mineral rights, neither this Policy, nor the optional endorsements, ensure that the purchaser has title to the mineral rights related to the surface estate. Another part of the determination involves whether the promise to insure is conditioned upon certain requirements being met. Schedule C of the Commitment lists these requirements that must be satisfied or the Company will refuse to cover them. You may want to discuss any matters shown in Schedules B and C of the Commitment with an attorney. These matters will affect your title and your use of the land. When your policy is issued, the coverage will be limited by the Policy's Exceptions, Exclusions and Conditions, defined below. ---EXCEPTIONS are title risks that a Policy generally covers but does not cover in a particular instance. Exceptions are shown on Schedule B or discussed in Schedule C of the Commitment. They can also be added if you do not comply with the Conditions section of the Commitment. When the policy is issued, all Exceptions will be on Schedule B of the Policy. ---EXCLUSIONS are title risks that a Policy generally does not cover. Exclusions are contained in the Policy but not shown or discussed in the Commitment. ---CONDITIONS are additional provisions that qualify or limit you coverage. Conditions include your responsibilities and those of the Company. They are contained in the Policy but not shown or discussed in the Commitment. The Policy Conditions are not the same as the Commitment Conditions. You can get a copy of the policy form approved by the Texas Department of Insurance by calling the Title Insurance Company at (800) 442-7067 or by calling the title insurance agent that issued the Commitment. The Texas Department of Insurance may revise the policy form from time to time. You can also get a brochure that explains the policy from the Texas Department of Insurance by calling 1-800-252-3439. Before the Policy is issued, you may request changes in the Policy. Some of the changes to consider are: ---Request amendment of the "area and boundary" exception (Schedule B, paragraph 2). To get this amendment, you must furnish a survey and comply with other requirements of the Company. On the Owner's Policy, you must pay an additional premium for the amendment. If the survey is acceptable to the Company and if the Company's other requirements are met, your Policy will insure you against loss because of discrepancies or conflicts in boundary lines, encroachments or protrusions, or overlapping of improvements. The Company may then decide not to insure against specific boundary or survey problems by making special exceptions in the Policy. Whether or not you request amendment of the "area and boundary" exception, you should determine whether you want to purchase and review a survey if a survey is not being provided to you. ---Allow the Company to add an exception to "rights of parties in possession." If you refuse this exception, the Company or the title insurance agent may inspect the property. The Company may except to and not insure you against the rights of specific persons, such as renters, adverse owners or easement holders who occupy the land. The Company may charge you for the inspection. If you want to make your own inspection, you must sign a Waiver of Inspection form and allow the Company to add this exception to your Policy. The entire premium for a Policy must be paid when the Policy is issued. You will not owe any additional premiums unless you want to increase your coverage at a later date and the Company agrees to add an Increased Value Endorsement. FORM T-7: Cmnmitment for Title Insurance Page 7 DELETION OF ARBITRATION PROVISION (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 Company. 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 or less shall be arbitrated at the option of either the Company or the Insured, unless the Insured is an individual person (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 Page 8 TITLE DATA GF:1911717113 The attached title insurance commitment contains information which has been obtained or derived from records and information owned by Title Data, Inc. or one of its subsidiaries (collectively "Title Data"). Title Data owns and maintains land title plants for Harris, Brazoria, Chambers, Fort Bend, Galveston, Jefferson, Liberty, Montgomery and Waller counties, Texas. Title Data created its title plants through the investment of extensive time, labor, skill and money. The information contained in the title plants is protected by federal copyright law and Texas common law on trade secrets and contract. Title Data has granted our company a license to use one or more of its title plants. Our company's right to access and use Title Data's title plants is governed by our contract with Title Data. Our contract with Title Data restricts who can receive and/or use a title insurance commitment which is based, in whole or in part, upon Title Data's records and information. Under the terms of our contract with Title Data, we are permitted to provide you with the attached title insurance commitment for limited use and distribution only. Specifically, you are sublicensed to deliver, exhibit, or furnish the attached title insurance commitment (or any copies thereof) ONLY to your bona fide employees and a third party who is playing a bona fide role in this proposed real estate transaction, including a lawyer, a lender, a surveyor, a real estate broker or agent, and the parties to this proposed transaction. For purposes of our agreement with Title Data, "deliver, exhibit, or furnish" includes, without limitation ,copying this title insurance commitment (whether such copying be by means of a photocopier, facsimile machine, another electronic scanning device, or any other method of reproduction) and providing such copy to any third parry. Your furnishing of the attached title insurance commitment to anyone not specifically enumerated above is not permitted by our contract with Title Data and constitutes a breach of our sublicense to you. Your furnishing of the attached title insurance commitment to anyone not specifically enumerated above is also a violation of federal copyright law and Texas common law. Therefore, as an express condition of us providing you with the attached title insurance commitment, you specifically agree to limit its uses to those set forth herein, and to provide a copy of this letter to any party to whom you deliver, exhibit, or furnish the attached title insurance commitment (or any copies thereof). In the event you are unable or unwilling to comply with these conditions, immediately return the attached title insurance commitment to our company, without reviewing, copying, or otherwise utilizing in any way the information contained therein. A COPY OF THIS LETTER MUST ACCOMPANY THE ATTACHED TITLE INSURANCE COMMITMENT AT ALL TIMES. ALL DOWNSTREAM RECIPIENTS MUST PROVIDE A COPY OF THIS LETTER TO ANY OTHER AUTHORIZED USERS OF THE ATTACHED TITLE INSURANCE COMMITMENT. File No.: 1911717113 DISCLOSURE PROVIDED WITH OR WITHIN TITLE COMMITMENT As Escrow Agent for the Real Estate transaction, StarTex Title Company, LLC, ("Escrow Agent") has received and/or will receive the buyer's/borrower's funds and/or funds from the buyer's/borrower's lender for disbursement at closing of the transaction. The seller and the buyer (or the borrower in a refinancing transaction) may request that escrow funds be invested in an interest -bearing account subject to a reasonable administrative fee charged by Escrow Agent and any account terms and conditions negotiated with the financial institution offering the interest bearing account. Otherwise, Escrow Agent shall deposit the earnest money in a demand deposit account that is federally insured to the maximum extent permitted by law. Demand deposit accounts are non interest bearing pursuant to federal law, but offer immediately available funds for withdrawal after a check has cleared. Escrow Agent may receive other benefits from the financial institution where the funds are deposited. Based upon the deposit of escrow funds in demand deposit accounts and other relationships with the financial institution, Escrow Agent is eligible to participate in a program whereby it may (i) receive favorable loan terms and earn income from the investment of loan proceeds and (ii) receive other benefits offered by the financial institution. TAX SERVICE DISCLOSURE To: FFC Equity Holdings, LP or assigns From: StarTex Title Company, LLC Date: April 13, 2012 RE: 1911717113 Property: , College Station, Texas This is to give you notice StarTex Title, Company, LLC, has a business relationship with Professional Real Estate Tax Service, LLC. Stewart Title Company holds a 45% ownership interest in StarTex Title Company, LLC and Stewart Title Company holds a 100%ownership interest in Professional Real Estate Tax Service, LLC. Because of this relationship, this referral may provide StarTex Title Company, LLC a financial or other benefit. Set forth below is the estimated charge or range of charges by Professional Real Estate Tax Service, LLC. You are NOT required to use Professional Real Estate Tax Service, LLC as a condition for the settlement of your loan on, or the purchase or sale of, the subject property. There are frequently other settlement service providers available with similar services. You are free to shop around to determine that you are receiving the best services and best rate forthese services. Provider and Settlement Service Charge or Range of Charges Professional Real Estate Tax Service Tax Certificate $69.28 ($64.00 + tax) Please notify the below referenced Escrow Officer within ten (10) days from the date of this notice if you do not want Professional Real Estate Tax Service, LLC utilized in connection with your transaction. Burr Buckalew, Escrow Officer TEXAS TITLE INSURANCE INFORMATION Title insurance Insures you against loss resulting from Certain risks to El seguro de titulo Is asegura on relaciou a perddas your title. resuftantes de ciertos riesgos qua pueden afectar eitltuto desu propiedad. The Commitment for Title Insurance Is the title insurance companys promise to Issue the title Insurance policy. The Commitment is a legal document. You should review it carefully to completely understand it before your closing date. El Compromiso para Suguro de Tiulo as la proesa de la compania aseguradora de titulos de emitir la poliza de seguro de titulo. El Compromise es on documento legal. Usted debe leerlo cuidadosaments y entenderlo completamente antes de la fecha para finalizar so transaction. Your Commitment for Title Insurance is a legal contract between you and us. The Commitment Is not an opinion or report of your title. It Is a contract to Issue you a policy subject to the Commitments terms and requirements. Before Issuing a Commitment for Title Insurance (the Commitment) or a Title Insurance Policy (the Policy), the Title Insurance Company (the Company) determines whether the title is insurable. this determination has already been made. Part of that determination involves the company's decision to insure the title except for certain risks that will not be covered by the Policy. Some of these risks are listed in Schedule B of the attached Commitment as Exceptions. Other risks are stated In the Policy as Exclusions. These risks will not be covered by the Policy. Another part of the determination involves whether the promise to insure is conditioned upon certain requirements being met. Schedule C of the Commitment lists these requirements that must be satisfied or the Company will refuse to cover them. You may want to discuss any matters shown in Schedules B and C of the Commitment with an attorney. These matters will affect your title and your use of the land. When your Policy Is issued, the coverage will be limited by the Policy's Exceptions, Exclusions and Conditions, defined below: • EXCEPTIONS are title risks that a Policy generally covers but does not cover in a particular Instance. Exceptions are shown on Schedule B or discussed in Schedule C of the Commitment. They can also be added if you do not comply with the Conditions section of the Commitment. When the Policy is issued, all Exceptions will be on Schedule B of the Policy. • EXCLUSIONS are title risks that a Policy generally does not cover. Exclusions are contained in the Policy but not shown or discussed in the Commitment. • CONDITIONS are additional provisions that qualify or limit your coverage. Conditions include your responsibilities and those of the Company. They are contained in the Policy but not shown or discussed in the Commitment. The Policy Conditions are not the same as the Commitment Conditions. You can also get a copy of the policy form approved by the State Board of Insurance by calling the Title Insurance Company at 800-446-7086 or by calling the title Insurance agent that issued the Commitment. The State Board of Insurance may revise the policy form from time to time. You can also get a brochure that explains the policy from the Texas Department of Insurance by calling 1-800-252-3439. Before the Policy is issued, you may request changes in the policy. Some of the changes to consider are: • Request amendment of the"area and boundary" exception (Schedule B, paragraph 2). To get this amendment, you must furnish survey. On the Owner Policy, you must pay an additional premium forthe amendment. If the survey is acceptable to the Company, your Policy will insure you against loss because of discrepancies or conflicts in boundary lines, encroachments or protrusions, or overlapping of Improvements. The Company maythen decide not to insure against specific boundary or survey problems by making special exceptions in the Policy. • Allow the Company to add an exception to "rights of parties in possession," If you refuse this exception, the Company or the title insurance agent may inspect the property. The Company may except to and not insure you against the rights of specific persons, such as renters, adverse owners or easement holders who occupythe land. The Company may charge you for the Inspection. If you want to make your own Inspection, you must sign a Waiver of Inspection form and allow the Companyto add this exception to your Policy. The entire premium for a Policy must be paid when the Policy is issued. You will not owe any additional premiums unless you want to Increase your coverage at a later date and the Company agrees to add an Increased Value Endorsement. Texas Title Insurance Information FORM 1177-17 (1-1-93) IMPORTANT NOTICE FOR INFORMATION, OR TO MAKE A COMPLAINT CALL OUR TOLL -FREE TELEPHONE NUMBER 0115:I1AJ i E [:'1 SLr1:I : ALSO YOU MAY CONTACT THE TEXAS DEPARTMENT OF INSURANCE AT 1-800-252-3439 to obtain information on: 1. filing a complaint against an insurance company or agent, 2. whether an insurance company or agent is licensed, 3. complaints received against an insurance companyor 4. policyholders right, and 5. a list of consumer publications and services available through the Department. YOU MAY ALSO WRITE TO THE TEXAS DEPARTMENT OF INSURANCE P.O. BOX 149104 AUSTIN, TEXAS 78714-9104 FAX NO. (512) 475-1771 ADVISO IMPORTANTE PARA INFORMACION, 0 PARA SOMETER UNA QUEJA LLAME AL NUMERO GRATIS 1-800-446-7086 TAMBIEN PUEDE COMUNICARSE CON EL DEPARTAMENTO DE SEGUROS DE TEXAS AL 1-800-252-3439 Para obtener informacion sabre: 1. como someter una queja an contra de una compania de seguros o agento de seguros, 2. si una compania de seguros o agente de agent segurostienelicencia, 3. quejas recibidas en contra de una compania de seguros o agente de seguros, 4. los derechos del asegurado, y 5. una lista de publicaciones y servicios Para consumidores disponibles a traves del Departamento. TAMBIEN PUEDE ESCRIBIR AL DEPARTAMENTO DE SEGUROS DE TEXAS P.O. BOX 149104 AUSTIN, TEXAS 78714-9104 FAX NO. (512) 475-1771 STG Privacy Notice 2 (Rev 01/26/09) Independent Agencies and Unaffiliated Escrow Agents WHAT DO/DOESTHE STARTEX TITLE COMPANY, LLC DO WITH YOUR PERSONAL INFORMATION? Federal and applicable state law and regulations give consumers the right to limit some but not all sharing. Federal and applicable state law regulations also require us to tell you how we collect, share, and protect your personal information. Please read this notice carefully to understand how we use your personal information. This privacy notice is distributed on behalf of StarTex Title Company, LLC and its affiliates Stewart Title Guaranty Company pursuant to Title V of the Gramm -Leach -Bliley Act (GLBA). The types of personal information we collect and share depend on the product or service that you have sought through us. This information can include social security numbers and driver's license number. All financial companies, such as StarTex Title Company, LLC, need to share customers' personal information to run their everyday business —to process transactions and maintain customer accounts. In the section below, we list the reasons that we can share customers' personal information; the reasons that we choose to share; and whether you can limit this sharing. For our everyday business purposes— to process your transactions and maintain your account. This may include running the business and managing customer accounts, such as processing Yes No transactions, mailing, and auditing services, and responding to court orders and legal investigations. For our marketing purposes— to offer our products and services to you. Yes No For joint marketing with other financial companies No We don't share For our affiliates' everyday business purposes— information about your transactions and experiences. Affiliates are companies related by common ownership or control. They can be Yes No financial and nonfinancial companies. For our affiliates' everyday business purposes— information about your creditworthiness. No We don't share For our affiliates to market toyou Yes No For nonaffiliates to market to you. Nonaffiliates are companies not related by common No We don't share ownership or control. They can be financial and nonfinancial companies. We may disclose your personal information to our affiliates or to nonaffiliates as permitted by law. If you request a transaction with a nonaffiliate, such as a :nird party insurance company, we will disclose mtormation to tnat nonamuate. How often do/does StarTex Title Company, LLC I We must notify you about our sharing practices when you request a transaction notifv me about their practices? How do/does StarTex Title Company, LLC protect To protect your personal information from unauthorized access and use, we use security my personal information? measures that comply with federal and state law. These measures include computer, file, and building safeguards. How do/does StarTex Title Company, LLCcollectmy We collect your personal information, for example, when you personal information? • request insurance -related services • provide such information to us We also collect your personal information from others, such as the real estate agent or What sharing can I limit? Although federal and state law give you the right to limit sharing (e.g., opt out) in certain instances, we do not share our Rersonal information in those instances. If you have any questions about this privacy notice, please contact us at: StarTex Title Company, LLC, 617 Caroline, Houston, Texas 77002 BOUNDARY DELETION DISCLOSURE The Texas Title Insurance Information portion of the Commitment for Title Insurance advises you that your Policy will insure you against loss because of non -excepted discrepancies or conflicts in boundary lines, encroachments or protrusions, or overlapping of improvements if you pay an additional five percent (5%) premium of the Basic Rate for your Residential Owner Policy for the coverage, and we are provided with a satisfactory survey, pursuant to Procedural Rule P2. Your Residential Owner Policy of Title Insurance will contain this coverage and you will be charged the additional five percent (5%) premium unless on or before the date of closing you advise the company in writing that you rejectthis coverage. If you do not get this insurance, you will have to hire your own attorney and surveyor, if necessary, and you will not be protected under your Residential Owner Policy against any encroachments, such as buildings over easements, buildings over setback lines, buildings over property lines or location of fences.