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HomeMy WebLinkAbout10-00500180- 00075149r' THE FOLLOWING COMMITMENT FOR TITLE INSURANCE IS NOT VALID UNLESS YOUR NAME AND THE POLICY AMOUNT ARE SHOWN IN SCHEDULE A, AND OUR AUTHORIZED REPRESENTATIVE HAS COUNTERSIGNED BELOW. COMMITMENT FOR TITLE INSURANCE Issued by Commonwealth Commitment No. 149390 We, Commonwealth Land Title Insurance Company will Issue our title Insurance policy or policies (the Policy) to You (the proposed insured) upon payment of the premium and other charges due, and compliance with the requirements in Schedule B and Schedule C. Our Policy will be in the form approved by the Texas Department of Insurance at the date of issuance, and will insure your interest in the land described in Schedule A. The estimated premium for our Policy and applicable endorsements is shown on Schedule D. There may be additional charges such as recording fees, and expedited delivery expenses. This Commitment ends ninety (90) days from the effective date, unless the Policy is issued sooner, or failure to issue the Policy is our fault. Our liability and obligations to you are under the express terms of this Commitment and end when this Commitment expires. IN WITNESS WHEREOF, COMMONWEALTH LAND TITLE INSURANCE COMPANY has caused its corporate name and seal to be hereunto affixed by its duly authorized officers, the Commitment to become valid when countersigned by an authorized officer or agent of the Company. TX0265 149390 Brazos County Abstract Company 3800 Cross Park Dr Bryan, TX 77802 Tel:(979) 731-1900 raa:(979)731-8352 Countersign Authorized Signatory COMMONWEALTH LANE) MLE INSURANCE COMPANY ' ~y f i,Sf:AI .i -tea f L9 HttP41i~ CONDITIONS AND STIPULATIONS 1. If you have actual knowledge of any matter which may affect the title or mortgage covered by this Commitment, that is not shown in Schedule B, you must notify us in writing. If you do not notify us in writing, our liability to you is ended or reduced to the extent that your failure to notify us affects our liability. If you do notify us, or we learn of such matter, we may amend Schedule B, but we will not be relieved of liability already incurred. 2. Our liability is only to you, and others who are included in the definition of Insured in the Policy to be issued. Our liability is only for actual loss incurred in your reliance on this Commitment to comply with its requirements, or to acquire the Interest In the land. Our liability is limited to the amount shown in Schedule A of this Commitment and will be subject to the following terms of the Policy: Insuring Provisions, Conditions and Stipulations, and Exclusions. Form 81 C 13443 (1 W009) T-7 Commitment for TiQe In uranc (eO ,~,o COMMONWEALTH LAND TITLE INSURANCE COMPANY SCHEDULE A Effective Date: August 20, 2010 at 8:00 AM Commitment issued August 23, 2010 1. 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. $209,050.00 PROPOSED INSURED: HOLY CROSS LUTHERAN CHURCH (b) TEXAS RESIDENTIAL OWNER'S POLICY OF TITLE INSURANCE ONE-TO-FOUR FAMILY RESIDENCES (Form T-1R) POLICY AMOUNT: PROPOSED INSURED: (c) LOAN POLICY OF TITLE INSURANCE (Form T-2) POLICY AMOUNT: $135,883.00 PROPOSED INSURED: TO BE DETERMINED PROPOSED BORROWER: HOLY CROSS LUTHERAN CHURCH (d) TEXAS SHORT FORM RESIDENTIAL LOAN POLICY OF TITLE INSURANCE (Form T-2R) POLICY AMOUNT: PROPOSED INSURED: PROPOSED BORROWER: File No.: 149390 (e) LOAN TITLE POLICY BINDER ON INTERIM CONSTRUCTION LOAN (Form T-13) POLICY AMOUNT: PROPOSED INSURED: PROPOSED BORROWER: (f) OTHER POLICY AMOUNT: PROPOSEDINSURED: 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: WILLIAM DEAN LETBETTER and THOMAS DOYLE LETBETTER, JR. BRAZOS COUNTY ABSTRACT COMPANY By: L LL Authorized Signature COMMONWEALTH LAND TITLE INSURANCE COMPANY SCHEDULE A File No. 149390 4. LEGAL DESCRIPTION OF THE LAND: All that certain 3.84 acre tract or parcel of land lying and being situated in the MORGAN RECTOR LEAGUE, Abstract No. 46, College Station, Brazos County, Texas. Said tract being a portion of the remainder of a called 46.9 acre tract as described by a Deed to William Dean Letbetter and Thomas Doyle Letbetter recorded in Volume 2922, page 73, Official Records of Brazos County, Texas. Said tract being more particularly described by metes and bounds as follows: BEGINNING at a 1/2 inch iron rod found on the northeast line of said 46.9 acre tract marking the south corner of Lot 1, Block 6 and the west corner of Lot 4, Block 6, Foxfire, Phase 2, according to the plat recorded in Volume 358, page 291, Deed Records of Brazos County, Texas, for reference a 1/2 inch iron rod found marking the common corner of Lots 2 and 3, Block 6, Foxfire, Phase 2, Bears: N 44° 22' 49" E for a distance of 476.20 feet; THENCE S 44° 22'49" W through said 46.9 acre tract for a distance of 454.81 feet to a 1/2 inch iron rod set marking the south corner of this herein described tract; THENCE N 45° 32' 18" W continuing through said 46.9 acre tract for a distance of 367.75 feet to a 1/2 inch iron rod set on the southeast line of Sebesta Road marking the west corner of this herein described tract; THENCE N 44° 23' 21" E along the southeast line of Sebesta Road for a distance of 454.81 feet to a 112 inch iron rod set marking the west corner of said Lot 1, Block 6, Foxfire, Phase 2; THENCE S 45° 32' 18" E along the common line of said 46.9 acre tract and said Lot 1 for a distance of 367.68 feet to the POINT OF BEGINNING, containing 3.84 acres of land, more or less. COMMONWEALTH LAND TITLE INSURANCE COMPANY SCHEDULE B File No. 149390 EXCEPTIONS FROM COVERAGE IN ADDITION TO THE EXCLUSIONS AND CONDITIONS AND STIPULATIONS, YOUR POLICY WILL NOT COVER LOSS, COSTS, ATTORNEY'S FEES, AND EXPENSES RESULTING FROM: 1. THE FOLLOWING RESTRICTIVE COVENANTS OF RECORD ITEMIZED BELOW (WE MUST EITHER INSERT SPECIFIC RECORDING DATA OR DELETE THIS EXCEPTION): Item No. 1 is hereby deleted in its entirety. 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 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 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 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 2010, AND SUBSEQUENT YEARS; AND SUBSEQUENT TAXES AND ASSESSMENTS BY ANY TAXING AUTHORITY FOR PRIOR YEARS DUE TO CHANGE IN LAND USAGE OR OWNER'SSHIP, BUT NOT THOSE TAXES OR ASSESSMENTS FOR PRIOR YEARS BECAUSE OF AN EXEMPTION GRANTED TO A PREVIOUS OWNER'S 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 OF TITLE INSURANCE (T-2R) IS ISSUED, THAT POLICY WILL SUBSTITUTE "WHICH BECOME DUE AND PAYABLE SUBSEQUENT TO DATE OF POLICY" IN LIEU OF "FOR THE YEAR 2010 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'S. (APPLIES TO THE LOAN TITLE POLICY BINDER ON INTERIM CONSTRUCTION LOAN ONLY, AND MAY BE DELETED IF SATISFACTORY EVIDENCE IS PROVIDED 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.) COMMONWEALTH LAND TITLE INSURANCE COMPANY SCHEDULE B File No. 149390 (Continued) 9. THE EXCEPTIONS FROM COVERAGE AND EXPRESS INSURANCE IN SCHEDULE B OF THE TEXAS SHORT FORM RESIDENTIAL LOAN POLICY OF TITLE INSURANCE (T-2R). (APPLIES TO TEXAS SHORT FORM RESIDENTIAL LOAN POLICY OF TITLE INSURANCE (T-2R) ONLY. SEPARATE EXCEPTIONS 1 THROUGH 8 OF THIS SCHEDULE B DO NOT APPLY TO THE TEXAS SHORT FORM RESIDENTIAL LOAN POLICY OF TITLE INSURANCE (T-2R). 10. THE FOLLOWING MATTERS AND ALL TERMS OF THE DOCUMENT CREATING OR OFFERING EVIDENCE OF THE MATTERS (WE MUST INSERT MATTERS OR DELETE THIS EXCEPTION.); a. Rights of Parties in Possession. (Owner's Policy Only) b. Easements, or claims of easements, which are not recorded in the public records. (Owner's Policy Only) c. Right-of-Way Easement from Mary Sebesta et al to Humble Pipe Line Company, dated July 21, 1919, recorded in Volume 49, page 23, Deed Records of Brazos County, Texas. d. 20' Utility Easement from T. D. Letbetter et ux to City of College Station, dated April 29, 1982, recorded in Volume 518, page 235, Deed Records of Brazos County, Texas, as depleted on survey plat prepared by Brad Kerr, Registered Professional Land Surveyor, State of Texas, No. 4502, dated June 24, 2010. e. Right-of-Way and Utility Easement from Lucille D. Letbetter et a] to City of College Station, filed April 7, 1992, recorded in Volume 1468, page 21, Official Records of Brazos County, Texas, as depicted on survey plat prepared by Brad Kerr, Registered Professional Land Surveyor, State of Texas, No. 4502, dated June 24, 2010. f. 10' Utility Easement from William Dean Letbetter eta] to City of College Station, Texas, dated June 11, 1994, recorded in Volume 2153, page 36, Official Records of Brazos County, Texas, as depicted on survey plat prepared by Brad Kerr, Registered Professional Land Surveyor, State of Texas, No. 4502, dated June 24, 2010. g. Mineral reservation in Deed from Mrs. Mary Sebesta et al to Clyde F. Goen, dated August 3, 1937, recorded in Volume 95, page 259, Deed Records of Brazos County, Texas. Title to this reservation has not been traced subsequent to the date of the above-cited instrument. h. Mineral Deed from Mamie Sebesta to Camille Davis, dated December 10, 2003, recorded in Volume 5776, page 290, Official Records of Brazos County, Texas. Title to this mineral interest has not been traced subsequent to the date of the above-cited instrument. i. Estate created by Oil and Gas Lease from T. D. Letbetter et al to W&W Minerals, Inc., dated September 18, 1984, recorded in Volume 744, page 217, Official Records of Brazos County, Texas. Title to this lease has not been traced subsequent to the date of the above-cited instrument, j. Estate created by Oil and Gas Lease from William Dean Letbetter et al to Inco Oil Corporation, dated September 27, 1991, recorded in Volume 1369, page 224, Official Records of Brazos County, Texas, and ratified by instruments recorded in Volume 1385, pages 90, 92 and 94, Volume 1423, pages 59, 87, 91 and 95 and Volume 1434, page 97, Official Records of Brazos County, Texas, and amended by instruments recorded in Volume 1760, pages 284, 287 and 290, Volume 1775, pages 12 and 15, Volume 1801, page 43 and Volume 1979, pages 301, 303 and 305, Official Records of Brazos County, Texas. Title to this lease has not been traced subsequent to the date of the above- COMMONWEALTH LAND TITLE INSURANCE COMPANY SCHEDULE B File No. 149390 (Continued) cited instrument. k. 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 interests that are not listed. 1. The Tax Certificate furnished by the taxing authorities is issued on real estate only. It does not include minerals and/or personal property, therefore, no liability is assumed herein for the payment of said mineral and/or personal property tax. NOTE: FOR INFORMATION ONLY: Lender's File/Loan/Reference Number is TO BE DETERMINED. NOTE: If requested in closing instructions and upon compliance of endorsement requirements, a T-17 and/or T-19 Endorsement will be attached to Loan Title Policy. COMMONWEALTH LAND TITLE INSURANCE COMPANY SCHEDULE C File No. 149390 YOUR POLICY WILL NOT COVER LOSS, COSTS, ATTORNEY'S FEES, AND EXPENSES RESULTING FROM THE FOLLOWING REQUIREMENTS THAT WILL APPEAR AS EXCEPTIONS IN SCHEDULE B OF THE POLICY, UNLESS YOU DISPOSE OF THESE MATTERS TO OUR SATISFACTION, BEFORE THE DATE THE POLICY IS ISSUED: 1. DOCUMENTS CREATING YOUR TITLE OR INTEREST MUST BE APPROVED BY US AND MUST BE SIGNED, NOTARIZED AND FILED FOR RECORD. 2. SATISFACTORY EVIDENCE MUST BE PROVIDED THAT: -NO PERSON OCCUPYING THE LAND CLAIMS ANY INTEREST IN THAT LAND AGAINST THE PERSONS NAMED IN PARAGRAPH 3 OF SCHEDULE A, -ALL STANDBY FEES, TAXES, ASSESSMENTS AND CHARGES AGAINST THE PROPERTY HAVE BEEN PAID, -ALL IMPROVEMENTS OR REPAIRS TO THE PROPERTY ARE COMPLETED AND ACCEPTED BY THE OWNER'S, AND THAT ALL CONTRACTORS, SUB-CONTRACTORS, LABORERS AND SUPPLIERS HAVE BEEN FULLY PAID, AND THAT NO MECHANIC'S, LABORER'S LIENS OR MATERIALMAN'S LIENS HAVE ATTACHED TO THE PROPERTY, -(ON A LOAN'S POLICY ONLY) RESTRICTIONS HAVE NOT BEEN AND WILL NOT BE VIOLATED THAT AFFECT THE VALIDITY AND PRIORITY OF THE INSURED MORTGAGE. 3. THERE IS LEGAL RIGHT OF ACCESS TO AND FROM THE LAND, 4. YOU MUST PAY THE SELLER OR BORROWER THE AGREED AMOUNT FOR YOUR PROPERTY OR INTEREST. 5. 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. Company is to be furnished a properly executed resolution of Holy Cross Lutheran Church in recordable form. The resolution is to be pursuant to a duly called congregational meeting and is to specifically authorize the proposed transaction. The resolution is to name specific elders, deacons, trustees, or other authorized persons to execute the necessary instruments, as required by articles, by- laws, doctrines, manuals or other rules which govern the operation of the church. A copy of the governing document(s) is to be furnished for examination and possible additional requirements. 7. Company will require tax certificates on the subject property showing all taxes paid up to and including the year 2009. 8. Company will require a properly executed Waiver of Inspection. 9. Company will require a properly executed Affidavit as to debts and liens. 10. "The title insurance policy being issued to you contains an Arbitration Provision. 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. If you are the purchaser in the transaction and elect deletion of the Arbitration Provision, a form will be presented to you at closing for execution. If you are COMMONWEALTH LAND TITLE INSURANCE COMPANY SCHEDULE C File No. 949390 (Continued) the lender in the transaction and desire deletion of the Arbitration Provision, please inform us through your Closing Instructions." SCHEDULE D 1. The following individuals are directors and/or officers, as indicated, of the Title Insurance Company issuing this Commitment: Commonwealth Land Title Insurance Company is a wholly owned subsidiary of Chicago Title Insurance Company, a Nebraska Corporation. Commonwealth Land Title Insurance Companys officers and directors are as follows: OFFICERS DIRECTORS Raymond R. Quirk, Chairman of The Board, President and Chief Executive Officer Christopher Abbinante Anthony John Park, Executive Vice President Roger Scott Jewkes Michael Louis Gravelle, Executive Vice President and Corporate Secretary Theodore L. Kessner Dante[ K. Murphy, Senior Vice President and Treasurer Erika Meinhardt Anthony John Park Raymond R. Quirk 2. The following disclosures are made by the Title Insurance Agent issuing this commitment pursuant to Rule P-21. BRAZOS COUNTY ABSTRACT COMPANY SHAREHOLDERS DIRECTORS OFFICERS Tom Glesenschlag Tom Glesenschlag Tom Giesenschlag, President Diane C. Ganzer Diane C. Ganzer Diane C. Ganzer, Secretary June Van Etten June Van Etten, Vice President Linda Morgan Linda Morgan, Vice President 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 any sum 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 $ 1,425.00 Mortgagee Policy $ 100.00 Endorsement Charges $ Other $ Total $ Of this total amount: (or 15 will be paid to the policy issuing Title Insurance Company; $ (or 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 $ __--(or $ ___,(or °/U) $ or " 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 State Board of Insurance. Page 5 - Schedule D Form 1077-2 (Rev. 2009) Valid only if Schedules A. B and C and Cover Page are attached to Commonwealth' TEXAS TITLE INSURANCE INFORMATION Title Insurance insures you against loss El seguro de titulo le asegura en relacion a resulting from certain risks to your title. perdidas resultantes de ciertos riesgos que pueden The Commitment for Title Insurance is the afectar el titulo de su propledad. Title Insurance Company's promise to issue El Compromiso para Seguro de Titulo es la the Title Insurance Policy. The Commitment is a promesa de la compania aseguradora de titulos legal document. You should review it carefully de emitir la poliza de seguro de titulo. El to completely understand it before your closing Compromiso es un documento legal. Usted debe date. leerlo cuidadosamente y entenderlo complemente antes de la fecha para finalizar su 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. Form SICi3443 (11/2009) T-7 Commitment for Title Insurance You can get a copy of the policy form approved by the Texas Department of Insurance by calling Commonwealth Land Title Insurance Company at 1-800-442-7067 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 M C13443 (11/2009) T-7 Commilment for Title Insurance DELETION OF ARBITRATION PROVISION (Not applicable to the Texas Residential Owner 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. Alt 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." request deletion of the Arbitration provision. SIGNATURE DATE Form MC13443 (11/2009) T-7 Commitment for Title Insuance