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HomeMy WebLinkAboutTitle Insurance C . • TEXAS COMMITMENT FOR TITLE INSURANCE SCHEDULE A Effective Date: July 29, 2012 at 8:00 a.m. GF No. 00121 482 Commitment issued August 8, 2012, 8:00 a.m. 1. The policy or policies to be issued are: (a) OWNER POLICY OF TITLE INSURANCE (Form T -1) (Not applicable for improved one - to-four family residential real estate) Policy Amount: $TO BE DETERMINED PROPOSED INSURED: Lakeridge Living, L.P. (b) TEXAS RESIDENTIAL OWNER POLICY OF TITLE INSURANCE - ONE -TO -FOUR FAMILY RESIDENCES (Form T -1R) Policy Amount: $ PROPOSED INSURED: (c) MORTGAGEE POLICY OF TITLE INSURANCE (FORM T -2) Policy Amount: $TO BE DETERMINED PROPOSED INSURED: Proposed Borrower: Lakeridge Living, L.P. (d) TEXAS SHORT FORM RESIDENTIAL MORTGAGEE POLICY (Form T -2R) Policy Amount: $ PROPOSED INSURED: Proposed Borrower: (e) MORTGAGEE TITLE POLICY BINDER ON INTERIM CONSTRUCTION LOAN (Form T -13) Binder Amount: $ PROPOSED INSURED: Proposed Borrower: (f) OTHER: Policy Amount: $ PROPOSED INSURED: 2. The interest in the land covered by this Commitment is: Fee simple 3. Record Title to the land on the Effective Date appears to be vested in: SF Business Investments, LLC University Title Company First American Title Insurance Company Texas Commitment T -7 (Rev. 1 -1 -93) - Schedule A Valid Only if Schedule B, C, D and Cover are attached cke • • SCHEDULE A - continued GF No. 00121482 4. Legal description of land: See Exhibit A attached hereto and made a part hereof. t 4 • • SCHEDULE B GF No. 00121482 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, 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 spouse of any insured. (Applies to the Owner 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 Policy only.) 5. Standby fees, taxes and assessments by any taxing authority for the year 2012, and subsequent years, and subsequent taxes and assessments by any taxing authority for prior years due to change in land usage or ownership, but not those taxes or assessments for prior years because of an exemption granted to a previous owner of the property under Section 11.13, Texas Tax Code, or because of improvements not assessed for a previous tax year. (If Texas Short Form Residential Mortgagee Policy (T -2R) is issued, that policy will substitute "which become due and payable subsequent to Date of Policy" in lieu of "for the year and subsequent years. ") 6. The terms and conditions of the documents creating your interest in the land. 7. Materials furnished or labor performed in connection with planned construction before signing and delivering the lien document described in Schedule A, if the land is part of the homestead of the owner.(Applies to the Mortgagee Title Policy Binder on Interim Construction Loan only, and may be deleted if satisfactory evidence is furnished to us before a binder is issued.) 8. Liens and leases that affect the title to the land, but that are subordinate to the lien of the insured mortgage.(Applies to Mortgagee Policy T -2 only.) 9. The Exceptions from Coverage and Express Insurance in Schedule B of the Texas Short Form Residential Mortgagee Policy (T -2R). (Applies to Texas Short Form Residential Mortgagee Policy (T -2R) only. Separate University Title Company First American Title Insurance Company Texas Commitment T -7 (Rev. 1 -1 -93) - Schedule B Valid Only if Schedule A, C, D and Cover are attached ` • • SCHEDULE B - continued GF No. 00121482 exceptions 1 through 8 of this Schedule B do not apply to the Texas Short Form Residential Mortgagee Policy (T- 2R). 10. The following matters and all terms of the documents creating or offering evidence of the matters (We must insert matters or delete this exception): a. Rights of Parties in Possession. (OWNER POLICY ONLY) 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." (LENDER'S POLICY ONLY) c. 30' sewer line easement (partly on property) on the north side; as shown on survey prepared on March 26, 2012, under the supervision of Brad Kerr, R.P.L.S. #4502. d. Blanket Easement: From: Harry Gorzycki, et ux To: Sinclair Refining Company Dated: March 31, 1947 Recorded: Volume 132, Page 65, Deed Records, Brazos County, Texas. e. Waiver of Surface Use: From: Manitou, Ltd., Incorporated To: Brazos County Arapaho Limited Dated: November 22, 2011 Recorded: Volume 10432, Page 211, Official Records, Brazos County, Texas. Title to said interest has not been investigated subsequent to the date of the aforesaid instrument. f. Oil and Gas Lease, and all terms, conditions and stipulations therein: Lessor: Arapaho, Ltd. Lessee: Ogden Resources Corporation Dated: December 22, 1995 Recorded: Volume 2508, Page 38, Official Records, Brazos County, Texas. Title to said interest has not been investigated subsequent to the date of the aforesaid instrument. • • SCHEDULE C GF No. 00121482 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, and that all contractors, sub - contractors, laborers and suppliers have been fully paid, and that no mechanic's, laborer's or materialmen's liens have attached to the property, - there is legal right of access to and from the land, - (on a Mortgagee Policy only) restrictions have not been and will not be violated that affect the validity and priority of the insured mortgage. 3. You must pay the seller or borrower the agreed amount for your property or interest. 4. Any defect, lien or other matter that may affect title to the land or interest insured, that arises or is filed after the effective date of this Commitment. 5. Item No. 2 of Schedule B hereof shall be amended to read "shortages in area ", upon our receipt of an acceptable survey. (As to Mortgagee Policy Only) 6. Item No. 5 of Schedule B hereof shall be amended to read "standby fees, taxes and assessments by any taxing authority for the year 2012 and subsequent years, 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. ", upon payment of applicable premium. (As to Mortgagee Policy T -2 Only) (If Texas Short Form Residential Mortgagee Policy (T -2R) is issued, that policy will substitute "which become due and payable subsequent to Date of Policy" in lieu of "for the year and subsequent years. ") 7. If requested in lenders closing instructions and all of our underwriting requirements are satisfied, we will issue the T17 & T19 Endorsements, upon payment of any applicable premiums. (As to Mortgagee Policy Only) 8. If requested in lenders closing instructions and upon payment of applicable premium, we will issue the T -53 Texas Limited Coverage Residential Chain of Title Policy. 9. We will require an Affidavit as to Debts and Liens be signed and the original provided to us prior to issuance of any title policies. 10. We will require a Waiver of Inspection (Rights of Parties in Possession) be signed by the Purchaser and the original provided to us prior to issuance of any title policies. University Title Company First American Title Insurance Company Texas Commitment T -7 (Rev. 1 -1 -93) - Schedule C Valid Only if Schedule A, B, D and Cover are attached ^ • • SCHEDULE C - continued GF No. 00121482 11. We will require an original Tax Certificate be provided, showing all taxes paid current, prior to issuance of any title policies. (If this transaction is not closing in our office, let us know if we need to order the tax certificate.) 12. ARBITRATION: The Owner Policy of Title Insurance (Form T -1) and the Mortgagee Policy of Title Insurance (Form T -2) contain an arbitration provision. It allows the Insured or the Company to require arbitration if the amount of insurance is $2,000,000 or less. If the Insured wants to retain the right to sue the Company in case of a dispute over a claim, the Insured must request deletion of the arbitration provision before the Policy is issued. The Insured may do this by signing the Deletion of Arbitration Provision form and returning it to the Company at or before the closing of the real estate transaction or by writing to the Company. NOTE I: If you are the lender in the transaction and desire deletion of the Arbitration Provision , please inform us through your loan closing instructions. NOTE 2: This does not apply to Texas Residential Owner Policy of Title Insurance - One to Four Family Residences. If you are the purchasers of non - residential property and desire the deletion of the Arbitration Provision. a form will be presented to you at closing for execution. 13. If subject transaction will utilize a prior survey, we will require a full size, legible copy of said survey, with the surveyor's field notes, if any. Upon receipt of the existing survey, we reserve the right to determine whether said survey is acceptable for insuring purposes according to our underwriter guidelines. NOTE: While a survey may be acceptable for insuring purposes, all surveys are subject to final approval by lender. 14. Twenty - four Month Chain of Title: The following is a list of DEEDS affecting title to the real property described supra for the preceding twenty - four months: Vesting Deed to owners shown herein was dated February 6, 2012 and recorded in Volume 10523, Page 34, Official Records, Brazos County, Texas. Prior deed is dated November 22, 2011 and recorded in Volume 10432, Page 207, Official Records, Brazos County, Texas. Prior deed is dated June 22, 1976 and recorded in Volume 354, Page 416, Deed Records, Brazos County, Texas. 15. Record a Partial Release of Deed of Trust to secure a Note: Grantor: SF Business Investments, LLC Trustee: David Zalman Beneficiary: Prosperity Bank Amount: $230,000.00 Dated: February 6, 2012 Recorded: Volume 10523, Page 37, Official Records, Brazos County, Texas. University Title Company By: �' l.�L.C'. . �iti`) < 41 L 4 2 l Authorized Countersignature (Ifs j /rdf) lv� Aik • SCHEDULE C - continued GF No. 00121482 • • . • SCHEDULE D GF No. 00121482 The following disclosures are made pursuant to Procedural Rule P -21, promulgated by the Texas Department of Insurance: 1. UNDERWRITER: First American Title Insurance Company, a California corporation. Shareholder owning or controlling, directly or indirectly, ten percent or more of the shares of the Underwriter: First American Title Insurance Company is a wholly owned subsidiary of First American Financial Corporation, a public company formed in Delaware. Directors: Dennis J. Gilmore, Mark J. Harmsworth, Parker S. Kennedy, Jeffrey S. Robinson and Timothy V. Kemp Officers: President: Dennis J. Gilmore; Executive Vice President, Chief Financial Officer: Mark J. Harmsworth; Vice President, Secretary Timothy V. Kemp; and Executive Vice President, Business Director: John M. Hollenbeck. 2. AGENT: UNIVERSITY TITLE COMPANY a. Shareholder, owner, partner or other person having, owning or controlling one percent (1%) or more of the Title Insurance Agent that: Celia Goode - Haddock William C. Lipsey Michael R. Hoelscher Karen McCarroll b. Shareholder, owner, partner or other person having, owning or controlling ten percent (10%) or more of an entity that has, owns or controls one percent (1 %) or more of the Title Insurance Agent: not applicable c. The following persons are officers and directors of the Title Insurance Agent: Officers Directors Chairman/CEO - Celia Goode - Haddock Celia Goode - Haddock President/COO - Karen McCarroll Michael R. Hoelscher Vice President - Michael R. Hoelscher William C. Lipsey Secretary/Treasurer - William C. Lipsey Karen McCarroll 3. You are entitled to receive advance disclosure of settlement charges in connection with the proposed transaction to which this commitment relates. Upon your request, such disclosure will be made to you. Additionally, the name of any person, firm or corporation receiving a portion of the premium from the settlement of this transaction will be disclosed on the closing or settlement statement. You are further advised that the estimated title premium* is: Owner's Policy Loan Policy $ Endorsement Charges $ Other $ Total $ 0.00 Of this total amount: $ or 15.00% will be paid to the policy issuing Title Insurance Company: $ or 85.00% will be retained by the issuing Title Insurance Agent, and the remainder of the estimated premium will be paid to other parties as follows: Amount To Whom For Services $ $ * The estimated premium is based upon information furnished to us as of the date of this Commitment for Title Insurance. Final determination of the amount of the premium will be made at closing in accordance with the Rules and Regulations adopted by the Commissioner of Insurance. . • • Exhibit A Metes and bounds description of all that certain tract of land lying and being situated in the Crawford Burnet League, Abstract No 7, College Station, Brazos County, Texas. Said tract being a portion of a 1.217 acre tract of land as described by a Deed to SF Business Investments, LLC recorded in Volume 10523, Page 34 of the Official Public 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 East line of Holleman Drive 'W (R.O.W. varies) marking the Northwest corner of said 1.217 acre tract; THENCE: N 84° 34' 31" E along the North tine of said 1.217 acre tract and the South line of Lot 2, Block "A ", Holleman Village addition according to the plat recorded in Volume 3613, Page 285 of the Official Public Records of Brazos County, Texas for a distance of 332.14 feet to a 1/2 inch iron rod found on the Northwest line of Lot 1R, Block 1, Lakeridge Subdivision according to the plat recorded in Volume 9789, Page 192 of the Official Public Records of Brazos County, Texas. Said iron rod found marking the Southeast corner of said Lot 2 and the Northeast corner of said 1.217 acre tract; TFIENCE: S 41° 27' 41" W along the Northwest line of said Lot 1R for a distance of 168.87 feet to a point. For reference, a 1/2 inch iron rod found marling the common corner of said 1.2.17 acre tract and said Lot 1R bears: S 41° 27' 41" W for a distance of 256.51 feet; THENCE: S 85° 26' 49" W through said 1.217 acre tract for a distance of 213.13 feet to a 1/2 inch iron rod set on the East line of Holleman Drive W. For reference, a 1/2 inch iron rod found marking the Southwest corner of said 1.217 acre tract bears: S 03° 15' 28" E for a distance of 178.00 feet; THENCE: N 03° 15' 28" W along the East line of Holleman Drive W. For a distance of 112.25 feet to the POINT OF BEGINNING containing 0.71 of an acre of land, more or less, as surveyed on the ground March, 2012. See plat prepared March, 2012, for more descriptive information. Bearing orientation shown herein is based on grid North as established by UPS observation. 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. • • • • TEXAS COMMITMENT FOR TITLE INSURANCE SCHEDULE A Effective Date: July 29, 2012 at 8:00 a.m. GF No. 00121 X183 Commitment issued August 8, 2012, 8:00 a.m. 1. The policy or policies to be issued are: (a) OWNER POLICY OF TITLE INSURANCE (Form T -1) (Not applicable for improved one -to -four family residential real estate) Policy Amount: $30,000.00 PROPOSED INSURED: SF Business Investments, LLC (b) TEXAS RESIDENTIAL OWNER POLICY OF TITLE INSURANCE - ONE -TO -FOUR FAMILY RESIDENCES (Form T -1R) Policy Amount: $ PROPOSED INSURED: (c) MORTGAGEE POLICY OF '1'1'1'LE INSURANCE (FORM T -2) Policy Amount: $ PROPOSED INSURED: Proposed Borrower: (d) TEXAS SHORT FORM RESIDENTIAL MORTGAGEE POLICY (Form T -2R) Policy Amount: $ PROPOSED INSURED: Proposed Borrower: (e) MORTGAGEE TITLE POLICY BINDER ON INTERIM CONSTRUCTION LOAN (Form T -13) Binder Amount: $ PROPOSED INSURED: Proposed Borrower: (f) OTHER: Policy Amount: $ PROPOSED INSURED: 2. The interest in the land covered by this Commitment is: Fee simple 3. Record Title to the land on the Effective Date appears to be vested in: Lakeridge Living, L.P., a Texas Limited Partnership University Title Company First American Title Insurance Company Texas Commitment T -7 (Rev. 1 -1 -93) - Schedule A Valid Only if Schedule B, C, D and Cover are attached 1'N • SCHEDULE A - continued GF No. 00121483 4. Legal description of land: See Exhibit A attached hereto and made a part hereof. ` • SCHEDULE B GF No. 00121483 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): Volume 9722, Page 1 and Volume 10148, Page 173, Official Records, Brazos County, Texas, but deleting any covenants, conditions or restrictions indicating a preference, limitation or discrimination based on race, color, religion, sex, handicap, familial status, or national origin unless and only to the extent that said covenant (a) is exempt under Chapter 42, Section 3607 of the United States Code or (b) relates to handicap but does not discriminate against handicapped persons. 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 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 Policy only.) 5. Standby fees, taxes and assessments by any taxing authority for the year 2012, and subsequent years, and subsequent taxes and assessments by any taxing authority for prior years due to change in land usage or ownership, but not those taxes or assessments for prior years because of an exemption granted to a previous owner of the property under Section 11.13, Texas Tax Code, or because of improvements not assessed for a previous tax year. (If Texas Short Form Residential Mortgagee Policy (T -2R) is issued, that policy will substitute "which become due and payable subsequent to Date of Policy" in lieu of "for the year and subsequent years. ") 6. The terms and conditions of the documents creating your interest in the land. 7. Materials furnished or labor performed in connection with planned construction before signing and delivering the lien document described in Schedule A, if the land is part of the homestead of the owner.(Applies to the Mortgagee Title Policy Binder on Interim Construction Loan only, and may be deleted if satisfactory evidence is furnished to us before a binder is issued.) 8. Liens and leases that affect the title to the land, but that are subordinate to the lien of the insured mortgage.(Applies to Mortgagee Policy T -2 only.) University Title Company First American Title Insurance Company Texas Commitment T -7 (Rev. 1 -1 -93) - Schedule B Valid Only if Schedule A, C, D and Cover are attached cSr • • SCHEDULE B - continued GF No. 00121483 9. The Exceptions from Coverage and Express Insurance in Schedule B of the Texas Short Form Residential Mortgagee Policy (T -2R). (Applies to Texas Short Form Residential Mortgagee Policy (T -2R) only. Separate exceptions 1 through 8 of this Schedule B do not apply to the Texas Short Form Residential Mortgagee Policy (T- 2R). 10. The following matters and all terms of the documents creating or offering evidence of the matters (We must insert matters or delete this exception): a. Rights of Parties in Possession. (OWNER POLICY ONLY) 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." (LENDER'S POLICY ONLY) c. Visible and apparent easements. d. Portion of the property within any roadway. e. Any encroachment, encumbrance, violation, variation, or adverse circumstance affecting title that would be disclosed by an accurate and complete land survey of the land. f. Easements and Building Lines as shown on plat recorded in Volume 9789, Page 191 of the Official Records of Brazos County, Texas. g. Easements as set out in restrictions recorded in Volume 9772, Page 1 of the Official Records of Brazos County, Texas. h. Maintenance Charges and the Lien securing the payment of the same, as set forth in the Declaration of Condominium and By -Laws: By: Lakeridge Living, L.P. Dated: May 19, 2010 Recorded: Volume 9772, Page 1, Official Records, Brazos County, Texas. i. Rights and remedies of co- tenants, contractual or otherwise, including but not limited to terms, conditions, covenants, options, restrictions and easements contained in the Declaration of Condominium and By -Laws: By: Lakeridge Living, L.P. Dated: May 19, 2010 Recorded: Volume 9772, Page 1, Official Records, Brazos County, Texas, and in the Statutes of Texas regulating condominiums. j. Blanket Easement: From: Sidney N. Smith, et al To: Wellborn Water Supply Corporation Dated: January 7, 1972 Recorded: Volume 303, Page 354, Deed Records, Brazos County. Texas. k. Blanket Easement: From: T. L. Smith, Jr. To: Sinclair Refining Company • • SCHEDULE B - continued GF No. 00121483 Dated: October 7, 1947 Recorded: Volume 132, Page 127. Deed Records, Brazos County, Texas. 1. Temporary Blanket Utility Easement: From: Lakeridge Living, L.P. To: City of College Station Dated: March 3, 2010 Recorded: Volume 9527, Page 199, Official :Records, Brazos County. Texas. m. Easement: From: John D. Smith, et al To: Ferguson - Burleson Gas Gathering System Dated: July 15, 1997 Recorded: Volume 2788, Page 175, Official Records, Brazos County, Texas. n. Mineral Reservation in Deed: By: County of Brazos, Texas To: TLS Properties, Ltd. Dated: May 14, 2008 Recorded: Volume 8591, Page 273, Official Records, Brazos County, Texas. Title to said interest has not been investigated subsequent to the date of the aforesaid instrument. o. Mineral Reservation in Deed: By: TLS Properties, Ltd. To: Lakeridge Living, L.P. Dated: October 29, 2009 Recorded: Volume 9373, Page 23, Official Records, Brazos County, Texas. Title to said interest has not been investigated subsequent to the date of the aforesaid instrument. p. Royalty Deed: By: T. L. Smith, Jr. To: William Bukowski, et al Dated: April 8, 1946 Recorded: Volume 123, Page 583, Deed Records, Brazos County, Texas. Title to said interest has not been investigated subsequent to the date of the aforesaid instrument. q. Royalty Deed: By: Rosa Bukowsld To: W. N. Adkins Dated: March 30, 1984 Recorded: Volume 670, Page 171, Official Records, Brazos County, Texas. Title to said interest has not been investigated subsequent to the date of the aforesaid instrument. r. Royalty Deed: By: Annie Bukowski To: H. B. Young Dated: June 17, 1985 . Recorded: Volume 805, Page 67, Official Records, Brazos County, Texas. Title to said interest has not been investigated subsequent to the date of the aforesaid instrument. s. Waiver of Surface Use: From: Odgen Resources, Ltd. • • SCHEDULE B - continued GF No. 00121483 To: TLS Properties, Ltd. Dated: September 5, 2008 Recorded: Volume 8874, Page 198, Official Records, Brazos County, Texas. Title to said interest has not been investigated subsequent to the date of the aforesaid instrument. t. Oil and Gas Lease, and all terms, conditions and stipulations therein: Lessor: John Douglas Smith, et al Lessee: Apache Corporation Dated: September 24, 1993 Recorded: Volume 2019, Page 294, Official Records, Brazos County, Texas. Title to said interest has not been investigated subsequent to the date of the aforesaid instrument. u. Memorandum of Oil and Gas Lease, and all terms, conditions and stipulations therein: Lessor: Brazos County, Texas Lessee: Threshold Energy, Inc. Dated: April 7, 1984 Recorded: Volume 695, Page 152, Official Records, Brazos County, Texas. Title to said interest has not been investigated subsequent to the date of the aforesaid instrument. • ' • • SCHEDULE C GF No. 00121483 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, and that all contractors, sub - contractors, laborers and suppliers have been fully paid, and that no mechanic's, laborer's or materialmen's liens have attached to the property, - there is legal right of access to and from the land, - (on a Mortgagee Policy only) restrictions have not been and will not be violated that affect the validity and priority of the insured mortgage. 3. You must pay the seller or borrower the agreed amount for your property or interest. 4. Any defect, lien or other matter that may affect title to the land or interest insured, that arises or is filed after the effective date of this Commitment. 5. Item No. 2 of Schedule B hereof shall be amended to read "shortages in area ", upon our receipt of an acceptable survey. (As to Mortgagee Policy Only) 6. Item No. 5 of Schedule B hereof shall be amended to read "standby fees, taxes and assessments by any taxing authority for the year 2012 and subsequent years, 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. ", upon payment of applicable premium. (As to Mortgagee Policy T -2 Only) (If Texas Short Form Residential Mortgagee Policy (T -2R) is issued, that policy will substitute "which become due and payable subsequent to Date of Policy" in lieu of "for the year and subsequent years. ") 7. If requested in lenders closing instructions and all of our underwriting requirements are satisfied, we will issue the T17 & TI 9 Endorsements, upon payment of any applicable premiums. (As to Mortgagee Policy Only) 8. If requested in lenders closing instructions and upon payment of applicable premium, we will issue the T -53 Texas Limited Coverage Residential Chain of Title Policy. 9. We will require an Affidavit as to Debts and Liens be signed and the original provided to us prior to issuance of any title policies. 10. We will require a Waiver of Inspection (Rights of Parties in Possession) be signed by the Purchaser and the original provided to us prior to issuance of any title policies. University Title Company First American Title Insurance Company Texas Commitment T -7 (Rev, 1 -1 -93) - Schedule C Valid Only if Schedule A, B, D and Cover are attached 0 \j • • • SCHEDULE C - continued GF No. 00121483 11. We will require an original Tax Certificate be provided, showing all taxes paid current, prior to issuance of any title policies. (If this transaction is not closing in our office, let us know if we need to order the tax certificate.) 12. ARBITRATION: The Owner Policy of Title Insurance (Form T -1) and the Mortgagee Policy of Title Insurance (Form T -2) contain an arbitration provision. It allows the Insured or the Company to require arbitration if the amount of insurance is $2,000,000 or less. if the Insured wants to retain the right to sue the Company in case of a dispute over a claim, the Insured must request deletion of the arbitration provision before the Policy is issued. The Insured may do this by signing the Deletion of Arbitration Provision form and returning it to the Company at or before the closing of the real estate transaction or by writing to the Company. NOTE 1: If you are the lender in the transaction and desire deletion of the Arbitration Provision , please inform us through your loan closing instructions. NOTE 2: This does not apply to Texas Residential Owner Policy of Title Insurance - One to Four Family Residences. If you are the purchasers of non - residential property and desire the deletion of the Arbitration Provision, a form will be presented to you at closing for execution. 13. If subject transaction will utilize a prior survey, we will require a full size, legible copy of said survey, with the surveyor's field notes, if any. Upon receipt of the existing survey. we reserve the right to determine whether said survey is acceptable for insuring purposes according to our underwriter guidelines. NOTE: While a survey may be acceptable for insuring purposes, all surveys are subject to final approval by lender. 14. Twenty -four Month Chain of Title: The following is a List of DEEDS affecting title to the real property described supra for the preceding twenty -four months: None of Record Vesting Deed to owners shown herein was dated October 27, 2009 and recorded in Volume 9373, Page 23, Official Records, Brazos County, Texas. 15. Record a Partial Release of Deed of Trust to secure a Note: Grantor: Lakeridge Living, LP, a Texas limited partnership Trustee: Patricia E. Meronoff Beneficiary: Extraco Bank, N.A. Amount: $800,000.00 - Dated: September 21, 2011 Recorded: Volume 10351, Page 92, Official Records, Brazos County, Texas. 16. Require a Partial Release for the Declaration of Lakeridge Townhomes, a Condominium recorded in Volume 9722, Page 1, Official Records, Brazos County, Texas. University Title Company By: 6 -1 ' e(2/1 Authorized Countersignature (I / rdt) • • SCHEDULE D GF No. 00121483 The following disclosures are made pursuant to Procedural Rule P -21, promulgated by the Texas Department of Insurance: 1. UNDERWRITER: First American Title Insurance Company, a California corporation. Shareholder owning or controlling, directly or indirectly, ten percent or more of the shares of the Underwriter: First American Title Insurance Company is a wholly owned subsidiary of First American Financial Corporation, a public company formed in Delaware. Directors: Dennis J. Gilmore, Mark J. Harmsworth, Parker S. Kennedy, Jeth S. Robinson and Timothy V. Kemp Officers: President: Dennis J. Gilmore; Executive Vice President, Chief Financial Officer: Mark J. Harmsworth; Vice President, Secretary: Timothy V. Kemp; and Executive Vice President, Business Director: John M. Hollenbeck. 2. AGENT: UNIVERSITY TITLE COMPANY a. Shareholder, owner, partner or other person having, owning or controlling one percent (1 %) or more of the Title Insurance Agent that: Celia Goode - Haddock William C. Lipsey Michael R. Hoelscher Karen McCarroll b. Shareholder, owner, partner or other person having, owning or controlling ten percent (10 %) or more of an entity that has, owns or controls one percent (1 %) or more of the Title Insurance Agent: not applicable c. The following persons are officers and directors of the Title Insurance Agent: Officers Directors Chairman/CEO - Celia Goode - Haddock Celia Goode- Haddock President/COO - Karen McCarroll Michael R. Hoelscher Vice President - Michael R. Hoelscher William C. Lipsey Secretary/Treasurer - William C. Lipsey Karen McCarroll 3. You are entitled to receive advance disclosure of settlement charges in connection with the proposed transaction to which this commitment relates. Upon your request, such disclosure will be made to you. Additionally, the name of any person, firm or corporation receiving a portion of the premium from the settlement of this transaction will be disclosed on the closing or settlement statement. You are further advised that the estimated title premium* is: Owner's Policy $ 366.00 Loan Policy $ Endorsement Charges $ Other $ Total $ 366.00 Of this total amount: $ or 15.00% will be paid to the policy issuing Title Insurance Company: $ or 85.00% will be retained by the issuing Title Insurance Agent, and the remainder of the estimated premium will be paid to other parties as follows: To Whom For Services Amount $ $ * The estimated premium is based upon information famished to us as of the date of this Commitment for Title Insurance. Final determination of the amount of the premium will be made at closing in accordance with the Rules and Regulations adopted by the Commissioner of Insurance. • Exhibit A Metes and bounds description of all that certain tract of land lying and being situated in the Crawford Burnett League, Abstract No. 7, College Station, Brazos County, Texas. Said tract being a portion of Lot IR, Block 1, Lakeridge Subdivision according to the plat recorded in Volume 9789, Page 192 of the Official Public 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 set on and the North line of Harvey Mitchell Parkway — FM 2818 (R.O.W. varies). For reference, a 1/2 inch iron rod found marking the Southwest corner of said Lot 1R bears: S 85° 24' 40" W for a distance of 299.41 feet; THENCE: through said Lot IR for the following calls: N 03° 15' 28" W fora distance of 30.01 feet to a point; N 85° 24' 40" E for a distance of 116.69 feet to a point; S 03° 15' 28" E for a distance of 30.01 feet to a point on the North line of Harvey Mitchell Parkway. For reference, a concrete right -of -way marker found bears: N 85° 24' 40" E for a distance of 38.00 feet; THENCE: S 85° 24' 40" W along the North Tine of Harvey Mitchell Parkway for a distance of 116.69 feet to the POINT OF BEGINNING containing 0.08 of an acre of land (3501 sq. ft.), more or less, as surveyed on the ground March, 2012. See plat prepared March, 2012, for more descriptive information. bearing orientation shown herein is based on grid North as established by GPS observation. 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.