HomeMy WebLinkAboutTitle InsuranceOwner's Policy of Title Insurance (T -1)
First American Title Insurance Company
POLICY NUMBER
Owner's Policy 5019648- 0006670e
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 B AND THE
CONDITIONS, FIRST AMERICAN TITLE INSURANCE COMPANY, a Califomia.corporation (the "Company) Insures, as of Data 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 not limited to insurance against loss from:
(a) A defect in the Tifle caused by:
(I) forgery, fraud, undue influence, duress, Incompetency, Incapacity or impersonation;
(if) failure of any person or Entity to have authorized a transfer or conveyance;
(iii) a document affecting Title not property 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 falstfled, expired or otherwise Invalid power of attorney;
(v) a document not property filed, recorded or indexed in the Public Records Including failure to perform those acts by electronic
means authorized by law', or
(vii) a defective judicial or administrative proceeding.
(b) The lien of real seats 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 materiaiman's lien 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.
(Covered Risks Continued on Page 2)
In Wit less Whereof, First American Title Insurance Company has caused its corporate name to be hereunto affixed by Its authorized officers as of
Date of Policy shown In Schedule A.
First American Title Insurance Company
P a�%ILE Igs
p gP e¢4 •. 9 '
6 �
SEPTEMBER 24,
N d�'•, • 1968 $a
4
C 'Q I F 8 RN
Dennis J. Gilmore
President '
Timothy Kemp
Secretary
(This Policy Is valid only when Schedules A and 8 are attached)
Form 5019548 (211110) Page 1 of e
This Jacket was created electronically and consthutes an odginal document
TX T -1 Owners Policy of Title Insurance (Rev. 2 -1 -10)
- Taxes
Policy # : 6018648 - 0006670
COVERED RISKS (Continued)
5. The violation or enforcement of any law, ordinance, permit or governmental regulation Qncluding 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
'd a notice, describing any part of the Land, is recorded in the Public Records selling forth the violation or Intention to enforce, but only to the
extent of the violation or enforcement referred to in that notice.
6. An enforcement action based on the exercise of a governmental police power not covered by Covered Risk 5 if a notice of the enforcement
action, describing any pert 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 I 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 detective:
(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 title to or any interest in the Land o=rdng 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' this laws; or
(b) because the instrument of transfer vesting Tide as shown in Schedule A constitutes a preferential transfer under federal bankruptcy,
state insolvency or similar credllore' rights laws by reason of the failure of its recording in the Public Records:
() to be timely, or
[II) to Impart notice of its existence to a purchaser for value or to 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 Data 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.
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, atlomeys'
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:
[I) the occupancy, use, or enjoyment of the Land;
(d) the character, dimensions or location of any Improvement
erected on the Land;
(110 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
moldy 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 creaked subsequent to Date of Policy (however,
this does not moldy or limit the coverage provided under
Covered Risk 9 and 10); or
(e) resulting in loss or damage that would not have been
sustained If the Insured Claimant had paid value for the
Titre:
4. Any calm, 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 lien 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 ThOe
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.
Form 5019548 (911110) Page 2 of 6
TX T -1 Owner's Policy of Title Insurance (Rev. 2 -1 -10)
- Texas
n
TA OWNER'S POLICY OF TITLE *.cANCE
COVER SHEET
TP typed: March 21, 2011
POLICY NUMBER: 5019648 - 0006670e
GF NO. 00110241
Issued simultaneous with Policy No. 5019748 - 0024072e
COUNTY CODE: 041
PROPERTY CODE:
TOTAL PREMIUM: $7,034.00
POLICY CODE(S):
1200
TOTAL
University Title Company
T1- Texas Owner's Policy of Title Insurance
POLICY DATE: March 1, 2011
LIABILITY AMOUNT: $1,315,602.17
$ 7.034.00
$ S 7.034.00
First American Title Insurance Company
OWNER'S POLICY OF TITLE INSURANCE (T -1)
Issued by .
First American Title Insurance 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:
First American Title Insurance Company
1500 S. Dairy Ashford St., Suite 300
Houston, TX 77077
File No. 00110241 Policy No. 5019648 - 0006670e
Issued simultaneous with Policy No.: 5019748 - 0024072e
Address Reference: Holleman Dr S, College Station, TX 77845
Amount of Insurance: 51,315,602.17 Premium: $7,034.00
Date of Policy: March 1, 2011 at 2:21 P.M.
1. Name of Insured:
MJBS Holleman, Ltd., a Texas limited partnership
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:
MJBS Holleman, Ltd., a Texas limited partnership
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 First American Title Insurance 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
CRAWFORD BURNErT LEAGUE, ABSTRACT NO. 7, COLLEGE STATION, BRAZOS COUNTY, TEXAS SAID TRACT BEING THE
SAME TRACT OF LAND AS DESCRIBED BY A DEED TO OAKLAND RIDGE PARTNERS, LLC RECORDED IN VOLUME 7777,
PAGE 166 OFTHEOFFICIALPUBTJC RECORDS OFBRAZOS COUNTY, TEXAS
SAID TRACT BEING MORE PARTICULARLY DESCRIBED BY METES AND BOUNDS AS FOLLOWS:
BEGINNING AT A 1/1 INCH IRON ROD FOUND ON THE NORTHEAST LINE OF A CALLED 208523 ACRE TRACT OF LAND AS
DESCRIBED BY A DEED TO MTVISA CORP. RECORDED IN VOLUME 3812 PAGE 320 OF THE OFFICIAL PUBLIC RECORDS OF
BRAZOS COUNTY, TEXAS SAID IRON ROD FOUND MARKING THE WEST CORNER OF LOT 7, BLOCK 3, LAS PALOMAS
SUBDIVISION, ACCORDING TO THE PLAT RECORDED IN VOLUME 7367, PAGE 53 OF THE OFFICIAL PUBLIC RECORDS OF
BRAZOS COUNTY, TEXAS FORREFERENCE, CITY OF COLLEGE STATION GPS MONUMENT NO.116 BEARS: S 12° 49 29" E
FORA DISTANCE OF 7847.40 FEET;
THENCE: N 48 49' 10" W ALONG THE NORTHEAST LINE OF SAID 208.3 ACRE TRACT FOR A DISTANCE OF 1139.72
FEET TO A % INCH ]TON PIPE FOUND MARKING THE SOUTH CORNER OF A CALLED 20305 ACRE TRACT OF LAND AS
DESCRIBED BY A DEED TO JOHN KEMP AND WIPE, LINDA L KEMP RECORDED IN VOLUME 2561, PAGE 86 OF THE OFFICIAL
PUBLIC RECORDS OF BR A LO S C OUNT Y, TEXAS;
THENCE: N 42° 2S 2T' E ALONG THE SOUTHWEST LINE OF SAID 2030.5 ACRE TRACT FORA-DISTANCE OF 1802.76 FEETTOA
Y4iNCHIRONPB' EFOUNDONTH ESOUTHWESTLINEOFJONESBUTLERROAD (10(y RO-W.) MARKING THE EAST CORNER
OF SAID 20.305 ACRE TRACT;
THENCE: S 22° N 25" E ALONG SAID RIGHT -0F WAY FOR A DISTANCE OF 127291 FEET TO A 12 INCH IRON ROD SET
MARKING THE NORTH CORNER OF LOT 1, BLOCK 2 OF SAID LAS PALOMAS SUBDIVISION;
THENCE: S 42 51' 42" W ALONG THE NORTHWEST LINE OF SAID LAS PAIAMAS SUBDIVISION; AT 127.70 FEETPASS A 1R
INCH IRON ROD FOUND, CONTINUE ON FORA TOTAL DISTANCE OF 1230M FEET TO THE POINT OF BEGINNING
CONTAINING 39.8%ACRES OF LAND, 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.
�QQ
�W
SCHEDULE B
File No.: 00110241 Policy No: 5019648 - 0006670e
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 spoul se 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 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.
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. Vendor's Lien retained in Deed:
Grantor: Oakland Ridge Partners, LLC, a Texas limited liability company
Grantee: MJBS Holleman, Ltd., a Texas limited partnership
Dated: February 28, 2011
Recorded: March 1, 2011, Volume 10052, Page 256, Official Records, Brazos
County, Texas.
Deed of Trust, Security Agreement, Fixtures, Financing Statement, and Assignment of Rents
and Leases:
Grantor:
MJBS Holleman, LTD., a Texas limited partnership
Trustee:
Dean O. Bass
Amount:
3341,258.00
Beneficiary:
Spirit of Texas Bank, S.S.B., a Texas state savings bank
Dated:
February 28, 2011
Recorded:
March 1, 2011, Volume 10052, Page 260, Official Records, Brazos
County, Texas.
b. Rights of Parties in Possession.
University Title Company First American Title Insurance Company
TI - Texas Owner's Policy of Title Insurance -
c. Aerial electric lines, power poles and guy wires at various points through out property; as
shown on survey prepared on February 25, 2011, under the supervision of Brad Kea, R.P.L.S.
#4502.
d. Blanket Easement:
From: F. N. German
To: City of Bryan
Dated: January 12,1950
Recorded: Volume 141, Page 475, Deed Records, Brazos County, Texas; as noted on
survey prepared on February 25, 2011, under the supervision of Brad Kea, R.P.L.S. #4502.
e. 20' Basement on the northeast side:
From: David S. Borsack
To: Wellborn Special Utility District
Dated: February 12,1999
Recorded: Volume 3645, Page 296, Official Records, Brazos County, Texas; as shown on
survey prepared on February 25, 2011, under the supervision of Brad Kea, R.P.L.S. #4502.
Term Mineral Reservation in Deed:
By: A. IL Machos, at al
To: F. N. German
Dated: December 10, 1947
Recorded: Volume 133, Page 333, Deed Records, Brazos County, Texas. Title to said
interest has not been investigated subsequent to the date of the aforesaid instrument.
g. Mineral Reservation in Deed:
By: Bessie B. Floeek, Marilyn T. Dailey, Norman B. Floeck and Eileen F. Kafir
To: David S. Borsack
Dated: December 23,1998
Recorded: Volume 33511, Page 238, Official Records, Brazos County, Texas. Title to said
interest has not been investigated subsequent to the date of the aforesaid instrument.
h. Oil and Gas Lease, and all terms, conditions and stipulations therein:
Lessor. S. S. Floeck, at us:
Lessee: Tom Jordan
Dated: July 21, 1977
Recorded: Volume 27, Page 415, Oil & Gas Lease Records, Brazos County, Texas. Title
to said interest has not been investigated subsequent to the date of the aforesaid instrument.
Oil and Gas Lease, and all terms, conditions and stipulations therein:
Lessor. Bessie B. Floeck, at al
Lessee: Pat Baker d/b /a Baker Exploration Company
Dated: December 14,1993
Recorded: Volume 2020, Pages 228, 246, and 253, Official Records, Brazos County,
Texas. Title to said interest has not been investigated subsequent to the date of the aforesaid
instrument.
University Title Company
By: \b. 1 .. I C--1 _ .e .
Authorized Countersignature
University Title Company First American Title Insurance Company
Tl - Texas Owner's Policy of Title Insurance -
`�i �• A M p p' �9 •
First erican
Title Insurance Company
IMPORTANT NOTICE AVISO IMPORTANTE
To obtain Information or make a complaint
Para obtener information o Para someter una
queja:
You may contact University Title Company at 1-
888-326 -9818.
You may cell Fast American Title Insurance
Company's tolkfree telephone number for
information or to make a complaint at
1 .800347 -7826
You may also write to First American Title
Insurance Company at
1500 S. Dairy Ashford, Suite 300
Houston, Texas 77077 -9857
You may contact the Texas Department of
Insurance to obtain information on companies,
coverages, rights or complaints at
1 -800. 2523439
You may write the Texas Department of
Insurance:
P.O. Box 149104
Austin, Texas 78714-9104
Fax (512) 475 -1771
Web: hN AwrW tdf state br us
E -mail: ConsumeiProtectlon yh)Lstste.bcus
PREMIUM OR CLAIM DISPUTES:
Should you have a dispute concerning your
premium or about a claim, you should contact
University Title Company or First American Title
Insurance Company first If the dispute is not
resolved, you may contact the Texas Department
of Insurance.
ATTACH THIS NOTICE TO YOUR POLICY:
This notice is for information only and does not
become a part or condition of the attached
document.
Puede oomuniearse can su University Title
Company al 1. 886326 -9818.
Usted puede Ilamar al numero de telefono gratis
de First American Title Insurance CompaWs
Para infornaclon o Para someter una queja al:
1- 800347 -7826
Usted tombien puede escribir a First American
Title Insurance Company al:
1500 S. Dairy Ashford, Suits 300
Houston, Texas 77077 -9857
Puede comunicarse con at Departamento de
Seguros de Texas Para obtener information
acerce de companies, coberturas, derechos o
quejas al:
1- 800. 2523439
Puede escriblr at Departamento de Seguros de
Texas:
P.O. Box 149104
Austin, Texas 78714.9104
Fax (512) 475.1771
Web: httg:11 tdl state bcus
E -mail: ConsumsrProtedion9Ndi stats.bcus
DISPUTAS SOBRE PRIMAS O RECLAMOS:
SI gene una dispute concemiente a su prima 0 a
un redamo, dabs comunicarse con el University
Title Company o First American Title Insurance
Company primero. SI no as resueNe Is dispute,
puede entonoes comunicarse con el
departamento (TDI).
UNA ESTE AVISO A SU POLIZ4:
Este aviso as solo pars proposito de Information
y no as convierte an parts o condition del
documento adjunto.
1500 South DairyAshford, Sub 300
Houston, Texas 77077
reL (281) 588 -2200 • FAx (281) 588 -2240
wars reL (800) 347 -7826 wAra FAX (866) 509 -4818
Policy # : 6019648.0006670® •
CONDITIONS
1. DEFINITION OF TERMS.
The following tors when used in this policy mean:
(e) "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 P011cy° 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;
(8) 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
bust created by a written Instrument
established by the Insured named In Schedule
A for estate planning purposes.
(11) 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
consWcM notice of maters affecting the Title.
(g) °Lend": the land described in Schedule A, and affixed
improvements that by law constitute teal property. The ter
"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.
(1) -public Records°: records established under state statutes at
Date of Policy for the purpose of knperting constructive notice
of matters relating to real property to 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.
In °Title °: the estate or interest described in Schedule A.
(k) "Unmarketable Tide ": Title affected by an alleged or apparent
matter that would perk a prospective purchaser or lessee of
the Tide or lender on the Tide to be released from the
obligation to purchase, lease or lend if there is a contractual
condition requiring the delivery of marketable tide.
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 oblgation secured by a
purchase money Mortgage given by a purchaser from the Insured,
or only so long as the Insured shall 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 p) an estate or Interest in the land, or (iti 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
of any litigation as set forth in Section 5(a) below, or (i iin case
Knowledge shad come to an Insured hereunder of any claim of title
or interest that is adverse to the Tide, as Insured, and that might
cause loss or damage for which the Company may be liable by
Virtue of this policy. If the Company is prejudiced by the failure of
the Insured Gaimant to provide prompt notice the Companys
liability to the Insured Claimant under the policy shad 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 shag promptly
Investigate the charge to detertne whether the Den, encumbrance,
adverse claim or dated or other mater 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 insured's 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 wall 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
shag take one of the following actions: () Institute the necessary
proceedings to dear the lien, encumbrance, adverse claim or defect
from the Title as insured; (iq indemnity the Insured as provided in
this policy; (III) 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 tide insurance without exception for the lien,
Form 5018648 (2/1110) Page 3 of 6
TX T -1 Owners Policy of Title insurance (Rev. 2T
Policy #:6019648-0006670o • CONDITIONS (Continued)
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, th amount of the loan; Qv) Indemnify another We insurance
company in connection with Its Issuance of a policy(es) of title
Insurance without exception for the den, encumbrance, adverse
claim or defer (v) secure a release or other document discharging
the den, encumbrance, adverse claim or defect or (vi) undertake a
combination of Q) 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 defend, lien, encumbrance or
other matte 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) contained request ctions 3 and 7 of these Condi dude options
Company, at its am cost and without unreasonable delay, shall
provide for the defense of an Insured in 110gadon 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 aeon 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 it 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) Whenever 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 rases 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. Whenever requested by
the Company, the Insured, at the Company's expense, shall
give the Company all reasonable aid (t) in securing evidence,
obtaining witnesses, prosecuting or defending the action or
proceeding, or affecting settlement and n in any other lawful
act that in the opinion of the Company may be necessary or
desirable to establish the Tide or any other matte as Insured.
d 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, repots, e-mafis, disks, tapes,
and videos whether bearing a date before or after Date 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.
Ad 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 Clalmantto 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 any liability of the Company under
this policy as to that claim.
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, adomeys' 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, shad terminate, including any liability or obligation
to defend, prosecute, or continue any ffigation.
(b) To Pay or Otherwise Settle With Parties Other than the Insured
or With the Insured Claimant.
Q) 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
4 of 6 I - Texas
Policy #: 5019646 -0006670e
Insured Claimant that were authorized by the Company up 11.
to the time of payment and that the Company is obligated to
8.
9.
10
pay; or
(i) To pay or otherwise settle with the Insured Claimant the
loss or damage provided for 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 and that the Company is obligated to
pay. Upon the exercise by the Company of either of the
options provided for in subsections (b)() or (d), the
Company's obligations to the Insured under this policy for
the claimed toss or damage, other than the payments
required to be made, shall terminate including any liability
or obligation to defend, prosecute, or continue any litigation.
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
(di) 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) ti the Company pursues its fights 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
(ii) 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.
LIMITATION OF LIABILITY.
(a) If the Company establishes the Title, or removes the alleged
defect lien cur encumbrance, or cures the lack of a right of amass
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
matte 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 judsdicdon, and
disposition of all appeals, adverse to the Title, as Insured.
(c) The Company snail 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.
REDUCTION OF INSURANCE; REDUCTION OR TERMINATION OF
LIABILITY.
All payments under this policy, except payments made for costs,
attomeys' fees, and expenses, shall reduce the Amount of Insurance
by the amount of the payment.
12.
13.
14.
15
• ' CONDITIONS (Continued)
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.
PAYMENT OF LOSS.
When liability and the extent of loss or damage have been
definitely fixed in accordance with these Conditions, the
payment shall be made within 30 days.
RIGHTS OF RECOVERY UPON PAYMENT OR SETTLEMENT.
(a) Whenever the Company shall have settled and paid a claim
under this policy, it shall be subrogatod 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 lass, costs, atiomeys' 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
sates 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 unit 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.
ARBITRATION.
E'dher 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
CRules7. 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. An arbitrable matters when the Amount of Insurance is
$2,000,000 or leas shall be arbitrated at the option of elfher the
Company or the Insured, unless the Insured Is an Individual person
(as distinguished from an Entity). All arbitreble 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, unless
the insured is an individual person (as distinguished from an
Entity). 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.
LIABILITY LIMITED TO THIS POLICY; POLICY ENTIRE
CONTRACT.
(a) This policy together with all endorsements, 'd 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.
Form 5019540 (211/10) Page 5 of 6 TX T -1 Owners Po9cy of Tree Insurance (Rev. 2 -1 -10)
- Texas
Policy # : 50.19646 -00066709 • CONDITIONS (Continued)
(b) Any claim of loss or damage that arises out of the status of the
This or by any 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
pert of this policy and is subject to all of Its terms and
provisions. Except as the endorsement expressly states, It
does not (I) modify any of the terms and provisions of the
policy, (ii) modify any prior endorsement, (iii) extend the Date
of Policy or (N) 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 capblized 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 force 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 low
affecting interests in real property and applicable to the
interpretation, rights, remedies or enforcement of policies of
this insurance of the jurisdiction where the Land is located.
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 litigation or other proceeding brought
by the Insured against the Company must be filed only In a
state or federal court within the Unksd 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 to the Company under this policy must be given
to the Company at First American Title Insurance Company, Attn:
Claims National Intake Center, 11 First American Way, Santa Ana,
California 92707. Phone: 688. 632.1642.
Form 5019US (211/10) Page 5 of 6 TX T -1 owner's Policy of Tnie Insurance (Rev. 2 -1 -10)
- Texas