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PRELIMINARY REPORT CNcaOo Title Company <br />YOUR REFERENCE: ORDER NO.: 00176e31.W4.LT2.1Tw <br />INFORMATIONAL NOTES SECTION <br />=clauses <br />1. None of the items shown in this report will cause the Company to decline to attach ALTA Endorsement <br />Form 9 to an Extended Coverage loan Policy, when issued. <br />2. The Company Is not aware of any matters which would cause it to decline to attach CLTA Endorsement <br />Form 116 Indicating that theta is located on said Land Commercial properties, known as APN, located <br />within the city of Santa Ana, California, , to an Extended Coverage Loan Policy. <br />3. Note: The policy of title Insurance will Include an arbitration provision. The Company or the Insured may <br />demand arbitration. Arbitrable matters may include, but are not limited to, any controversy or claim <br />between the Company and the insured aching out of or relating to this policy, any service of the Company <br />in connection with He Issuance or the breach of a policy provision or other obligation. Please ask your <br />escrow or title officer for a sample copy of the policy to be issued H you wish to review the arbitration <br />provisions and any other provisions pertaining to your Thfe Insurance coverage. <br />A. Notice: Please be aware that due to the conflict between federal and state laws concerning the <br />cultivation, distribution, manufacture or sale of marquana, the Company is not able to close or insure any <br />transaction involving Land that is associated with these activities. <br />5. Pursuant to Government Code Section 27388.1. as amended and effective as of 1-1-2018, a <br />Documentary Transfer Tax (DTT) Affidavit may be required to be completed and submitted with each <br />document when DTT is being paid or when an exemption is being claimed from paying the tax. H a <br />governmental agency Is a party to the document, the form will not be required. DTT Affidavits may be <br />available at a Tax Assessor -County Clerk -Recorder. <br />6. The following Exclusion(s) are added to preliminary reports, commitments and will be Included as an <br />endorsement in the following policies: <br />A. 2008 ALTA Owner's Policy (06.17-06). <br />6. Defects, liens, encumbrances, adverse claims, notices, or other matters not appearing in <br />the Public Records but that would be disclosed by an examination of any records <br />maintained by or on behalf of a Tribe or on behalf of its members. <br />B. 2006 ALTA Loan Policy (06-17.08). <br />a. Defects, liens, encumbrances, adverse claims, notices, or other matters not appearing in <br />the Public Records but that would be disclosed by an examination of any records <br />maintained by or on behalf of a Tribe or on behalf of its members. <br />9. Any daim of invalidity, unenforceabiitty, or look of priority of the lien of time Insured <br />Mortgage based on the application of a Tribe's law resulting from the failure of the <br />Insured Mortgage to specify State law as the governing law with respect to the lien of the <br />Insured Mortgage. <br />C. ALTA Homeowner's Policy of Title Insurance (12-02-13) and CLTA Homeowners Policy of Title <br />Insurance (12-02-13). <br />10. Defects, liens, encumbrances, adverse claims, notices, or other matters not appearing in <br />the Public Records but that would be disclosed by an examination of any records <br />maintained by or on behalf of a Tribe or on behalf of its members, <br />D. ALTA Expanded Coverage Residential Loan Policy -Assessments Priority (04-02-16). <br />12. Defects, liens, encumbrances, adverse claims, notices, or other matters not appearing In <br />the Public Records but that would be disclosed by an examination of any records <br />maintained by or on behalf of a Tdbe,or on behalf of its members. <br />13. Any claim of invalidity, unenforceabilfty, or loot of priority of the lien of the Insured <br />Mortgage based on the application of a Tribe's law resulting from the failure of the <br />CLTA Prerminary Report Form—ModMed (11/17109) Page 1 <br />