HomeMy WebLinkAbout10-00500196- 00075031UNIVERSITY
TITLE COMPANY
August 30,2010
DH Properties, LLC
Attn: Mr. Glenn Hudson
2020 Oakwood Tr.
College Station, TX 77845
Re: GF No. 00102575
.25 Acres, M Rector A-46, City of College Station, Brazos County, Texas
Dear Mr. Hudson:
In connection with the above referenced file, we are enclosing your original Owner's Title Policy
No. 81143-003127. This policy contains important information about the real estate transaction
you have just completed. Also enclosed is your original Warranty Deed recorded under County
Clerk's File No. 1068598 in the Official Records of Brazos County, Texas. Please read and
retain these with your other valuable papers.
We appreciate the opportunity of serving you and will be glad to assist you in any way in regard
to your future title service needs.
Sincerely,
J lie Click
Policy Department
Enclosures
Celia Goode-Haddock, President
1021 University Drive East Post Office Drawer DT College Station, Texas 77841-5079
Telephone: (979) 260-9818 Fax: (979) 268-3080
www.utitle.com titleinfo@utitle.com
81143-003127
OWNER'S POLICY OF TITLE INSURANCE (T-1)
Issued by
Title Resources Guaranty Company
Any notice of claim and any other notice or statement in writing required to be given the Company under this Policy must be given to the
Company at the address shown in Section 18 of the Conditions.
COVERED RISKS
SUBJECT TO THE EXCLUSIONS FROM COVERAGE, THE EXCEPTIONS FROM COVERAGE CONTAINED IN SCHEDULE 8 AND THE
CONDITIONS, Title Resources Guaranty Company, a Texas corporation (the 'Company") insures, as of Date of Policy and, to the extent stated in
Covered Risks 9 and 10, after Date of Policy, against loss or damage, not exceeding the Amount of Insurance, sustained or incurred by the insured by
reason of
1. Title being vested other than as stated In Schedule A.
2. Any defect in or lien or encumbrance on the Title. This Covered Risk includes but is riot limited to insurance against loss from:
(a) A defect In the Title caused by:
(1) forgery, fraud, undue influence, duress, incompetency, incapacity or impersonation;
(ip failure of any person or Entity to have authorized a transfer or conveyance;
(il) a document affecting Title not properly created, executed, witnessed, sealed, acknowledged, notarized or delivered;
(iv) failure to perform those acts necessary to create a document by electronic means authorized by law;
(v) a document executed under a falsified, expired or otherwise Invalid power of attorney;
(vi) a document not properly filed, recorded or indexed In the Public Records including failure to perform those acts by electronic means
authorized by law; or
(vil) a defective judicial or administrative proceeding.
(b) The lien of real estate taxes or assessments imposed on the Title by a governmental authority due or payable, but unpaid.
(c) Any encroachment, encumbrance, violation, variation, or adverse circumstance affecting the Title that would be disclosed by an accurate and
complete land survey of the Land. The term 'encroachment includes encroachments of existing improvements located on the Land onto
adjoining land, and encroachments onto the Land of existing improvements located on adjoining land.
(d) Any statutory or constitutional mechanic's, contractor's, or materialman's Hen for labor or materials having its inception on or before Date of
Policy.
3. Lack of good and indefeasible Title.
4. No right of access to and from the Land.
5. The violation or enforcement of any law, ordinance, permit, or governmental regulation (including those relating to building and zoning) restricting,
regulating, prohibiting or relating to:
(a) the occupancy, use or enjoyment of the Land;
(b) the character, dimensions or location of any improvement erected on the Land;
(c) subdivision of land; or
(d) environmental protection
if a notice, describing any part of the Land, is recorded in the Public Records setting forth the violation or intention to enforce, but only to the extent
of the violation or enforcement referred to in that notice.
S. An enforcement action based on the exercise of a governmental police power riot covered by Covered Risk 5 if a notice of the enforcement action,
describing any part of the Land, is recorded in the Public Records, but only to the extent of the enforcement referred to in that notice.
7. The exercise of the rights of eminent domain if a notice of the exercise, describing any part of the Land, is recorded in the Public Records.
8. Any taking by a governmental body that has occurred and is binding on the rights of a purchaser for value without Knowledge.
9. Title being vested other than as stated in Schedule A or being defective:
(a) as a result of the avoidance in whole or in part, or from a court order providing an alternative remedy, of a transfer of all or any part of the tifle
to or any interest in the Land occurring prior to the transaction vesting Title as shown in Schedule A because that prior transfer constituted a
fraudulent or preferential transfer under federal bankruptcy, state insolvency or similar creditors' rights laws; or
(b) because the instrument of transfer vesting Tole as shown In Schedule A constitutes a preferential transfer under federal bankruptcy, state
insolvency or similar creditors' rights laws by reason of the failure of its recording in the Public Records:
(1) to be timely, or
(li) to Impart notice of its existence to a purchaser for value or a judgment or lien creditor.
10. Any defect in or lien or encumbrance on the Title or other matter Included in Covered Risks 1 through 9 that has been created or attached or has
been filed or recorded in the Public Records subsequent to Date of Policy and prior to the recording of the deed or other instrument of transfer in
the Public Records that vests Title as shown in Schedule A.
The Company will also pay the costs, attorneys' fees and expenses incurred in defense of any matter insured against by this Policy, but only to the
extent provided in the Conditions.
rys coo Title Resources Guaranty Company
a
tt
KA CJ-L4--L1 IV By: E ,-.e' 777,
M razed Signature Executive Vice President 1
S ~ P
Secre
FORM T-1: Owners Policy of Title Insurance (For Use Only in Texas) Effective 2112010
EXCLUSIONS FROM COVERAGE
The following matters are expressly excluded from the coverage of this policy and the Company will not pay loss or damage, costs, attorneys' fees or
expenses that arise by reason of.,
1. (a) Any law, ordinance, permit, or governmental regulation (including those relating to building and zoning) restricting, regulating, prohibiting or
relating to:
the occupancy, use, or enjoyment of the Land;
C IQ character, dimensions or location of any improvement erected on the Land;
(i) subdivision of land; or
(iv) environmental protection;
or the effect of any violation of these laws, ordinances or governmental regulations. This Exclusion 1(a) does not modify or limit the coverage
provided under Covered Risk 5.
(b) Any governmental police power. This Exclusion 1(b) does not modify or limit the coverage provided under Covered Risk 6.
2. Rights of eminent domain. This Exclusion does not modify or limit the coverage provided under Covered Risk 7 or 8.
3. Defects, liens, encumbrances, adverse claims or other matters:
(a) created, suffered, assumed or agreed to by the Insured Claimant;
(b) not Known to the Company, not recorded in the Public Records at Date of Policy, but Known to the insured Claimant and not disclosed in
writing to the Company by the Insured Claimant prior to the date the Insured Claimant became an Insured under this policy;
(c) resulting in no loss or damage to the Insured Claimant;
(d) attaching or created subsequent to Date of Policy (however, this does not modify or limit the coverage provided under Covered Risk 9 and 10);
(e) resulting in loss or damage that would not have been sustained if the Insured Claimant had paid value for the Title.
4. Any claim, by reason of the operation of federal bankruptcy, state Insolvency, or similar creditors' rights laws, that the transaction vesting the Title
as shown in Schedule A. is:
(a) a fraudulent conveyance or fraudulent transfer; or
(b) a preferential transfer for any reason not stated in Covered Risk 9 of this policy.
5. Any Hen on the Title for real estate taxes or assessments imposed by governmental authority and created or attaching between Date of Policy and
the date of recording of the deed or other instrument of transfer in the Public Records that vests Title as shown in Schedule A.
6. The refusal of any person to purchase, lease or lend money on the estate or interest covered hereby in the land described in Schedule A because
of Unmarketable Title.
CONDITIONS
1. DEFINITION OF TERMS.
The following terms when used in this policy mean:
(a) "Amount of Insurance': the amount stated in Schedule A, as may be increased or decreased by endorsement to this policy, increased by
Section 8(b), or decreased by Sections 10 and 11 of these Conditions.
(b) "Date of Policy": The date designated as 'Date of Policy" in Schedule A.
(c) "Entity": A corporation, partnership, trust, limited liability company or other similar legal entity.
(d) "Insured": the Insured named in Schedule A.
The term "Insured" also includes:
(A) successors to the Title of the Insured by operation of law as distinguished from purchase, including heirs, devisees, survivors,
personal representatives or next of kin;
(B) successors to an Insured by dissolution, merger, consolidation, distribution or reorganization;
(C) successors to an Insured by its conversion to another kind of Entity;
(D) a grantee of an Insured under a deed delivered without payment of actual valuable consideration conveying the Title;
(1) If the stock, shares, memberships, or other equity interests of the grantee are wholly-owned by the named Insured,
(2) If the grantee wholly owns the named Insured,
(3) If the grantee is wholly-owned by an affiliated Entity of the named Insured, provided the affiliated Entity and the named Insured
are both wholly-owned by the same person or Entity, or
(4) if the grantee is a trustee or beneficiary of a trust created by a written Instrument established by the Insured named In Schedule
A for estate planning purposes.
(i) With regard to (A), (B), (C) and (D) reserving, however, all rights and defenses as to any successor that the Company would have had
against any predecessor Insured.
(e) "Insured Claimant": an Insured claiming loss or damage.
(f) "Knowledge" or "Known": actual knowledge, not constructive knowledge or notice that may be imputed to an Insured by reason of the Public
Records or any other records that impart constructive notice of matters affecting the Title.
(g) "Land": the land described in Schedule A, and affixed improvements that by law constitute real property. The term "Land" does not include any
property beyond the lines of the area described In Schedule A, nor any right, title, interest, estate or easement in abutting streets, roads,
avenues, alleys, lanes, ways or waterways, but this does not modify or limit the extent that a right of access to and from the Land is insured by
this policy.
(h) "Mortgage": mortgage, deed of trust, trust deed, or other security instrument, including one evidenced by electronic means authorized by law.
(i) "Public Records", records established under state statutes at Date of Policy for the purpose of imparting constructive notice of matters relating
to real property to purchasers for value and without Knowledge. With respect to Covered Risk 5(d), "Public Records" shall also Include
environmental protection liens filed in the records of the clerk of the United States District Court for the district where the Land is located.
p 'Title': the estate or interest described in Schedule A.
(k) "Unmarketable Title": Title affected by an alleged or apparent matter that would permit a prospective purchaser or lessee of the Title or lender
on the Title to be released from the obligation to purchase, lease or lend if there is a contractual condition requiring the delivery of marketable
title.
2. CONTINUATION OF INSURANCE.
The coverage of this policy shall continue in force as of Date of Policy in favor of an Insured, but only so long as the Insured retains an estate or
interest in the Land, or holds an obligation secured by a purchase money Mortgage given by a purchaser from the Insured, or only so long as the
Insured shah have liability by reason of warranties in any transfer or conveyance of the Title. This policy shall not continue in force in favor of any
purchaser from the Insured of either (i) an estate or interest in the Land, or a an obligation secured by a purchase money Mortgage given to the
insured.
3. NOTICE OF CLAIM TO BE GIVEN BY INSURED CLAIMANT.
The insured shall notify the Company promptly in writing in case of any litigation as set forth in Section 5(2) below, or (i) in case Knowledge shall
come to an Insured hereunder of any claim of title or interest that is adverse to the Title, as insured, and that might cause loss or damage for which
FORM T-1: Owners Policy of Title Insurance (For Use Only in Texas) Effective 21112010
TEXAS-OWNER'S POLICY OF TITLE INSLRANCE
COVER SHEET
TP typed: August 26, 2010
POLICY NUMBER: 81143 - 003127
GF NO. 00102575
COUNTY CODE: 041 POLICY DATE: August 6, 2010
PROPERTY CODE: LIABILITY AMOUNT: $38,300.00
TOTAL PREMIUM: $425.00
POLICY CODE(S):
1000 $ 425.00
TOTAL $ $ 425.00
University Title Company Title Resources Guaranty Company
TI - Texas Owner's Policy of Title Insurance
OWNER'S POLICY OF TITLE INSURANCE (T-1)
Issued by
Title Resources Guaranty Company
Any notice of claim and any other notice or statement in writing required to be given the Company under this
Policy must be given to the Company at the address shown in Section 18 of the Conditions.
SCHEDULE A
Name and Address of Title Insurance Company:
Title Resources Guaranty Company
8111 LBJ Freeway, Suite 1200
Dallas, TX 75251
File No. 00102575 Policy No. 81143 - 003127
Address Reference: 115 Sterling Street, College Station, TX 77840
Amount of Insurance: $38,300.00 Premium: $425.00
Date of Policy: August 6, 2010 at 2:17 P.M.
1. Name of Insured:
DH Properties, LLC
2. The estate or interest in the Land that is encumbered by the Insured Mortgage is: Fee simple
3. Title is insured as vested in:
DH Properties, LLC
4. The Land referred to in this policy is described as follows:
See Exhibit A attached hereto and made a part hereof.
University Title Company Title Resources Guaranty Company
TI - Texas Owner's Policy of Title Insurance
Exhibit A
Metes and bounds description of all that certain tract of land lying and being situated in the Morgan Rector Survey,
Abstract No. 46, College Station, Brazos County, Texas. Said tract being the same tract of land as described by a Deed to
Shelby Preston and wife, Anger Lee Preston recorded in Volume 141, Page 60 of the Deed Records of Brazos County,
Texas.
Said tract being more particularly described by metes and bounds as follows:
BEGINNING at a 5/8 inch iron round found on the Northwest line of Sterling Street (25' R.O.W.) marking the East
corner of a called 0.249 acre tract of land as described by a Deed to J. Guadalupe Yanez recorded in Volume 3857, Page
139 of the Official Public Records of Brazos County, Texas. For reference a 5/8 inch iron rod found marking the South
corner of said Yanez Tract bears: S 41° 30' 19" W for a distance of 104.28 feet (this line used for bearing orientation
honoring the Deed call bearing shown in said Deed, 3857/139);
THENCE N 49° 33' 46" W along the Northeast line of said Yanez Tract for a distance of 104.07 feet to a 5/8 inch iron rod
found on the Southeast line of Lot 35B, Richards Addition. Said iron rod found marking the North corner of said Yanez
Tract;
THENCE N 41° 29' 34" E along the Southeast lien of said Richards Addition for a distance of 103.34 feet to a 1/2 inch iron
rod found marking the West corner of a called 0.25 acre tract of land as described by a Deed to Annie B. Lister recorded
in Volume 5968, Page 289 of the Official Public Records of Brazos County, Texas;
THENCE S 50° 02' 12" E along the Southwest line of said Lister Tract for a distance of 104.12 feet to a 1/2 inch iron rod
set on the Northwest line of Sterling Street. Said iron rod set marking the South corner of said Lister Tract;
THENCE S 41° 30' 19" W along the Northwest line of Sterling Street for a distance of 104.20 feet to the POINT OF
BEGINNING containing 0.248 of an acre of land (10799 sq. ft.), more or less.
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 or quantity of land is not a representation that such area or quantity is correct, but is
made only for informational and/or identification purposes and does not override Item 2 of Schedule B hereof
SCHEDULE B
File No.: 00102575 Policy No: 81143 - 003127
EXCEPTIONS FROM COVERAGE
This policy does not insure against loss or damage (and the Company will not pay costs, attorneys' fees or
expenses) that arise by reason of the terms and conditions of the leases and easements, if any, shown in
Schedule A, and the following matters:
1. The following restrictive covenants of record itemized below (the Company must either insert
specific recording data or delete this exception):
Item No. 1, Schedule B, is hereby deleted.
2. Any discrepancies, conflicts, or shortages in area or boundary lines, or any encroachments or
protrusions, or any overlapping of improvements.
3. Homestead or community property or survivorship rights, if any, of any spoulse of any Insured.
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 the 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 right
of access to that area or easement along and across that area.
5. Standby fees, taxes and assessments by any taxing authority for the year 2010, 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.
6. The following matters and all terms of the documents creating or offering evidence of the matters
(The Company must insert matters or delete this exception):
a. Rights of Parties in Possession.
b. "All leases, grants, exceptions or reservations of coal, lignite, oil, gas and other minerals,
together with all rights, privileges, and immunities relating thereto, appearing in the Public
Records whether listed in Schedule B or not. There may be leases, grants, exceptions or
reservations of mineral interest that are not listed herein."
c. 25' building line on the southeast side; 7.5' building line on the southwest and northeast sides;
20' building line on the northwest side; as shown on survey prepared on August 5, 2010,
under the supervision of Brad Kerr, R.P.L.S. #4502.
d. Fence lies outside the property on the northwest side of the property, as shown on survey
prepared on August 5, 2010, under the supervision of Brad Kerr, R.P.L.S. #4502.
e. Blanket Easement.
From: Samuel Richardson
To: City of Bryan
Dated: April 14,1937
Recorded: Volume 98, Page 214, Deed Records, Brazos County, Texas; as noted on survey
prepared on August 5, 2010, under the supervision of Brad Kerr, R.P.L.S. #4502.
University Title Company Title Resources Guaranty Company
T1- Texas Owner's Policy of Title Insurance -
University Title Company
By:
Authorized Countersignature
Figure: 28 TAC §1.601(a)(3)
IMPORTANT NOTICE
1 To obtain information or make a complaint
2 You may contact University Title Company at 1-866-
326-9818.
3 You may call Title Resources Guaranty Company's toll-
free telephone number for information or to make a
complaint at
1-800-526-8018
4 You may also write to Title Resources Guaranty
Company at:
811-1 LBJ Freeway, Ste. 1200
Dallas, TX 75251
5 You may contact the Texas Department of Insurance to
obtain information on companies, coverages, rights or
complaints at:
1-800-252-3439
6 You may write the Texas Department of Insurance:
P.O. Box 149104
Austin, TX 78714-9104
Fax: (512) 475-1771
Web: http://www.tdi.state.tx.us
E-mail: ConsumerProtection@tdi.state.tx.us
7 PREMIUM OR CLAIM DISPUTES:
Should you have a dispute concerning your premium or
about a claim you should contact University or Title
Resources Guaranty Company first If the dispute is not
resolved, you may contact the Texas Department of
Insurance.
8 ATTACH THIS NOTICE TO YOUR POLICY:
This notice is for information only and does not become a
part or condition of the attached document
AVISO IMPORTANTE
Para obtener informacion o pare someter una
queja:
Puede comunicarse con University Title Company al 1-866-
326-9818.
Usted puede liamar al numero de telefono gratis de Title
Resources Guaranty Company's para informacion o para
someter una queja al:
1-800-526-8018
Usted tambien puede escribir a Title Resources Guaranty
Company:
8111 LBJ Freeway, Ste. 1200
Dallas, TX 75251
Puede comunicarse con el Departamento de Seguros de
Texas para obtener informacion acerca de companias,
coberturas, derechos o quejas al:
1-800-252-3439
Puede escribir al Departamento de Seguros de Texas:
P.O. Box 149104
Austin, TX 78714-9104
Fax. (512) 475-1771
Web: http://www.tdi.state.tK.us
E-mail: ConsumerProtectionO-tdi.state.tx.us
DISPUTAS SOBRE PRIMAS O RECLAMOS:
Si tiene una disputa concemiente a su prima o a un
reclamo, debe comunicarse con University Title Company o
Title Resources Guaranty Company primero. Si no se
resuelve la disputa, puede entonces comunicarse con el
departamento
DI
UNA ESTE AVISO A SU POLIZA: Este aviso es solo para
proposito de information y no se convierte en parte o
condicion del documento adjunto.
the Company may be liable by virtue of this policy. If the Company is prejudiced by the failure of the Insured Claimant to provide prompt notice, the
Company's liability to the Insured Claimant under the policy shall be reduced to the extent of the prejudice.
When, after the Date of the Policy, the Insured notifies the Company as required herein of a lien, encumbrance, adverse claim or other defect in
Title insured by this policy that is not excluded or excepted from the coverage of this policy, the Company shall promptly investigate the charge to
determine whether the lien, encumbrance, adverse claim or defect or other matter is valid and not barred by law or statute. The Company shall
notify the Insured in writing. within a reasonable time, of its determination as to the validity or invalidity, of the Insureds claim or charge under the
policy. If the Company concludes that the lien, encumbrance, adverse claim or defect is not covered by this policy, or was otherwise addressed in
the dosing of the transaction in connection with which this policy was issued, the Company shall specifically advise the insured of the reasons for
its determination. If the Company concludes that the lien, encumbrance, adverse claim or defect is valid, the Company shall take one of the
following actions: n institute the necessary proceedings to dear the lien, encumbrance, adverse claim or defect from the Title as insured; CH)
indemnify the Insured as provided In this policy; pig upon payment of appropriate premium and charges therefor, issue to the Insured Claimant or to
a subsequent owner, mortgagee or holder of the estate or interest in the Land insured by this policy, a policy of title insurance without exception for
the lien, encumbrance, adverse claim or defect, said policy to be In an amount equal to the current value of the Land or, if a mortgagee policy, the
amount of the loan; pv) Indemnify another title insurance company In connection with its issuance of a policy(ies) of title insurance without exception
for the lien, encumbrance, adverse claim or defect; (v) secure a release or other document discharging the lien, encumbrance, adverse claim or
defect; or (v) undertake a combination of through (v) herein.
4. PROOF OF LOSS.
In the event the Company is unable to determine the amount of loss or damage, the Company may, at its option, require as a condition of payment
that the Insured Claimant furnish a signed proof of loss. The proof of loss must describe the defect, lien, encumbrance or other matter insured
against by this policy that constitutes the basis of loss or damage and shall state, to the extent possible, the basis of calculating the amount of the
loss or damage.
5. DEFENSE AND PROSECUTION OF ACTIONS.
(a) Upon written request by the Insured, and subject to the options contained in Sections 3 and 7 of these Conditions, the Company, at its own
cost and without unreasonable delay, shall provide for the defense of an Insured in litigation in which any third party asserts a claim covered by
this policy adverse to the Insured. This obligation Is limited to only those stated causes of action alleging matters insured against by this policy.
The Company shall have the right to select counsel of Its choice (subject to the right of the Insured to object for reasonable cause) to represent
the Insured as to those stated causes of action. It shall not be liable for and will not pay the fees of any other counsel. The Company will not
pay any fees, costs or expenses incurred by the Insured in the defense of those causes of action that allege matters not Insured against by this
policy.
(b) The Company shall have the right, in addition to the options contained in Sections 3 and 7, at its own cost, to Institute and prosecute any
action or proceeding or to do any other act that in its opinion may be necessary or desirable to establish the Title, as insured, or to prevent or
reduce loss or damage to the Insured. The Company may take any appropriate action under the terms of this policy, whether or not R shall be
liable to the Insured. The exercise of these rights shall not be an admission of liability or waiver of any provision of this policy. if the Company
exercises its rights under this subsection, it must do so diligently.
(c) VVhenever the Company brings an action or asserts a defense as required or permitted by this policy, the Company may pursue the litigation to
a final determination by a court of competent jurisdiction and it expressly reserves the right, in its sole discretion, to appeal from any adverse
judgment or order.
6. DUTY OF INSURED CLAIMANT TO COOPERATE.
(a) In all cases where this policy permits or requires the Company to prosecute or provide for the defense of any action or proceeding and any
appeals, the Insured shall secure to the Company the right to so prosecute or provide defense in the action or proceeding, including the right
to use, at Its option, the name of the Insured for this purpose. VVhenever requested by the Company, the Insured, at the Company's expense,
shall give the Company all reasonable aid Q) in securing evidence, obtaining witnesses, prosecuting or defending the action or proceeding, or
effecting settlement, and (1) in any other lawful act that in the opinion of the Company may be necessary or desirable to establish the Title or
any other matter as insured. If the Company is prejudiced by the failure of the Insured to furnish the required cooperation, the Company's
obligations to the Insured under the policy shall terminate, including any liability or obligation to defend, prosecute, or continue any litigation,
with regard to the matter or matters requiring such cooperation.
(b) The Company may reasonably require the Insured Claimant to submit to examination under oath by any authorized representative of the
Company and to produce for examination, inspection and copying, at such reasonable times and places as may be designated by the
authorized representative of the Company, all records, in whatever medium maintained, including books, ledgers, checks, memoranda,
correspondence, reports, e-malls, disks, tapes, and videos whether bearing a date before or after Data of Policy, that reasonably pertain to the
loss or damage. Further, If requested by any authorized representative of the Company, the Insured Claimant shall grant its permission, in
writing, for any authorized representative of the Company to examine, inspect and copy all of these records in the custody or control of a third
party that reasonably pertain to the loss or damage. All Information designated as confidential by the Insured Claimant 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 Insured Claimant to submit for examination under oath, produce any reasonably requested
information or grant permission to secure reasonably necessary information from third parties as required In this subsection, unless prohibited
by law or governmental regulation, shall terminate arty liability of the Company under this policy as to that claim.
(c) If the Insured demands that the Company accept a settlement offer that is not greater than the Amount of Insurance or if the Insured expressly
agrees that a settlement offer should be accepted, the Company has a right to be reimbursed if it has timely asserted its reservation of rights
and notified the Insured that It Intends to seek reimbursement if it pays to settle or defend a claim that is not covered by the policy.
7. OPTIONS TO PAY OR OTHERWISE SETTLE CLAIMS; TERMINATION OF LIABILITY.
In case of a claim under this policy, the Company shall have the following additional options:
(a) To Pay or Tender Payment of the Amount of Insurance.
To pay or tender payment of the Amount of Insurance under this policy together with any costs, attorneys' fees and expenses incurred by the
insured Claimant that were authorized by the Company up to the time of payment or tender of payment and that the Company is obligated to
pay-
Upon the exercise by the Company of this option, all liability and obligations of the Company to the Insured under this policy, other than to
make the payment required in this subsection, shall terminate, including any Debility or obligation to defend, prosecute, or continue any
litigation.
(b) To Pay or Otherwise Settle With Parties Other than the Insured or Width the Insured Claimant.
(1) to pay or otherwise settle with other parties for or in the name of an Insured Claimant any claim insured against under this policy. In
addition, the Company will pay any costs, attorneys' fees and expenses incurred by the Insured Claimant that were authorized by the
Company up to the time of payment and that the Company is obligated to pay; or
(1) to pay or otherwise settle with the Insured Claimant the loss or damage provided for under this policy, together with arty costs, attorneys'
fees and expenses incurred by the Insured Claimant that were authorized by the Company up to the time of payment and that the
Company is obligated to pay.
Upon the exercise by the Company of either of the options provided for in subsections (b)(i) or (ii), the Company's obligations to the Insured under
FORM T-1: Owners Policy of Title Insurance (For Use Only in Texas) Effective 2/12010
This policy for the claimed loss or damage, other than the payments required to be made, shall terminate, including any liability or obligation to
defend, prosecute or continue any litigation.
8. DETERMINATION AND EXTENT OF LIABILITY.
This policy is a contract of indemnity against actual monetary loss or damage sustained or incurred by the Insured Claimant who has suffered loss
or damage by reason of matters insured against by this policy.
(a) The extent of liability of the Company for loss or damage under this policy shall not exceed the lesser of
the Amount of Insurance; or
61) the difference between the value of the Title as insured and the value of the Title subject to the risk insured against by this policy.
(b) If the Company pursues its rights under Section 3 or 5 and is unsuccessful In establishing the Title, as insured,
(1) the Amount of Insurance shall be Increased by 10%, and
s the Insured Claimant shall have the right to have the loss or damage determined either as of the date the claim was made by the Insured
Claimant or as of the date it is settled and paid.
(c) In addition to the extent of liability under (a) and (b), the Company will also pay those costs, attorneys' fees and expenses incurred in
accordance with Sections 5 and 7 of these Conditions.
9. LIMITATION OF LIABILITY.
(a) If the Company establishes the Title, or removes the alleged defect, lien or encumbrance, or cures the lack of a right of access to or from the
Land, all as insured, or takes action in accordance with Section 3 or 7, in a reasonably diligent manner by any method, Including litigation and
the completion of any appeals, it shall have fully performed Its obligations with respect to that matter and shall not be liable for any loss or
damage caused to the Insured.
(b) In the event of any litigation, including 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, adverse to the Title, as
insured.
(c) The Company shall not be liable for loss or damage to the Insured for liability voluntarily assumed by the Insured in settling any claim or suit
without the prior written consent of the Company.
10. REDUCTION OF INSURANCE; REDUCTION OR TERMINATION OF LIABILITY.
All payments under this policy, except payments made for costs, attorneys' fees and expenses, shalt reduce the Amount of Insurance by the
amount of the payment.
11. LIABILITY NONCUMULATIVE.
The Amount of Insurance shall be reduced by any amount the Company pays under any policy insuring a Mortgage to which exception is taken in
Schedule B or to which the Insured has agreed, assumed, or taken subject or which is executed by an Insured after Date of Policy and which is a
charge or lien on the Title, and the amount so paid shall be deemed a payment to the Insured under this policy.
12. PAYMENT OF LOSS.
When liability and the extent of loss or damage have been definitely foxed in accordance with these Conditions, the payment shall be made within
30 days.
13 RIGHTS OF RECOVERY UPON PAYMENT OR SETTLEMENT.
(a) Whenever the Company shall have settled and paid a claim under this policy, it shall be subrogated and entitled to the rights of the Insured
Claimant In the Title and all other rights and remedies in respect to the claim that the Insured Claimant has against any person or property, to
the extent of the amount of any loss, costs, attorneys' fees and expenses paid by the Company. If requested by the Company, the Insured
Claimant shall execute documents to evidence the transfer to the Company of these rights and remedies. The Insured Claimant shall permit
the Company to sue, compromise or settle in the name of the Insured Claimant and to use the name of the Insured Claimant in any transaction
or litigation involving these rights and remedies.
If a payment on account of a claim does not fully cover the loss of the Insured Claimant, the Company shall defer the exercise of Its right to
recover until after the Insured Claimant shall have recovered its loss.
(b) The Company's right of subrogation includes the rights of the Insured to indemnities, guaranties, other policies of insurance or bonds,
notwithstanding any terns or conditions contained in those instruments that address subrogation rights.
14. ARBITRATION.
Either the Company or the Insured may demand that the claim or controversy shall be submitted to arbitration pursuant to the ride insurance
Arbitration Rules of the American Land Title Association ('Ruled. 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.
15. LIABILITY LIMITED TO THIS POLICY; POLICY ENTIRE CONTRACT.
(a) This policy together with all endorsements, if any, attached to it by the Company is the entire policy and contract between the Insured and the
Company. In interpreting any provision of this policy, this policy shall be construed as a whole.
(b) Any claim of loss or damage that arises out of the status of the Title or by arty action asserting such claim, shall be restricted to this policy.
(c) Any amendment of or endorsement to this policy must be in writing and authenticated by an authorized person, or expressly incorporated by
Schedule A of this policy.
(d) Each endorsement to this policy issued at any time is made a part of this policy and is subject to all of its terns and provisions. Except as the
endorsement expressly states, it does not modify any of the terms and provisions of the policy, (ill modify any prior endorsement, (ti) extend
the Date of Policy or (hr) increase the Amount of Insurance. Each Commitment, endorsement or other form, or provision in the Schedules to
this policy that refers to a term defined in Section 1 of the Conditions shall be deemed to refer to the term regardless of whether the term is
cap'italUmd In the Commitment, endorsement or other form, or Schedule. Each Commitment, endorsement or other form, or provision in the
Schedules that refers to the Conditions and Stipulations shall be deemed to refer to the Conditions of this policy.
16. SEVERABILITY.
In the event any provision of this policy, in whole or in part, is held invalid or unenforceable under applicable law, the policy shall be deemed not to
include that provision or such part held to be invalid and all other provisions shall remain in full farce and effect
17. CHOICE OF LAW; FORUM.
(a) Choice of Law: The Insured acknowledges the Company has underwritten the risks covered by this policy and determined the premium
charged therefor in reliance upon the law affecting Interests in real property and applicable to the interpretation, rights, remedies or
enforcement of policies of title insurance of the jurisdiction where the Lanai is located.
FORM T-1: Owner's Policy of Title Insurance (For Use Only in Texas) Effective 2/1/2010
Therefore, the court or an arbitrator shall apply the law of the jurisdiction where the Land is located to determine the validity of claims against
the Title that are adverse to the Insured, and in interpreting and enforcing the terms of this policy. In neither case shall the court or arbitrator
apply its conflicts of laws principles to determine the applicable law.
(b) Choice of Forum: Any 1'itigation or other proceeding brought by the Insured against the Company must be filed only in a state or federal court
within the United States of America or its territories having appropriate jurisdiction.
18. NOTICES, WHERE SENT.
Any notice of claim and any other notice or statement in writing required to be given the Company under this Policy must be given to the Company
at: Title Resources Guaranty Company, 8111 LBJ Freeway, Ste. 1200, Dallas, TX 75251.
FORM T-1: Owner's Policy of Title Insurance (For Use Only In Texas) Effective 2/1/2010