Fidelity National Title Company



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Fidelity National Title Company PRELIMINARY REPORT In response to the application for a policy of title insurance referenced herein, Fidelity National Title Company hereby reports that it is prepared to issue, or cause to be issued, as of the date hereof, a Policy or Policies of Title Insurance describing the land and the estate or interest therein hereinafter set forth, insuring against loss which may be sustained by reason of any defect, lien or encumbrance not shown or referred to as an Exception herein or not excluded from coverage pursuant to the printed Schedules, Conditions and Stipulations of said Policy forms. The printed Exceptions and Exclusions from the coverage and Limitations on Covered Risks of said Policy or Policies are set forth in Exhibit A attached. Limitations on Covered Risks applicable to the CLTA and ALTA Homeowner s Policies of Title Insurance which establish a Deductible Amount or a Maximum Dollar Limit of Liability for certain coverages are also set forth in Exhibit A. Copies of the Policy forms should be read. They are available from the office which issued this report. This report (and any supplements or amendments hereto) is issued solely for the purpose of facilitating the issuance of a Policy of title insurance and no liability is assumed herby. If it is desired that liability be assumed prior to the issuance of a policy of title insurance, a Binder or Commitment should be requested. The Policy(s) of title insurance to be issued hereunder will be policy(s) of Fidelity National Title Insurance Company, a California Corporation. Please read the exceptions shown or referred to below and the exceptions and exclusions set forth in Exhibit A of this report carefully. The exceptions and exclusions are meant to provide you with notice of matters which are not covered under the terms of the title insurance policy and should be carefully considered. It is important to note that this preliminary report is not a written representation as to the condition of title and may not list all liens, defects and encumbrances affecting title to the land.

Fidelity National Title Company, CA PRELIMINARY REPORT ESCROW OFFICER: ORDER NO.: 33418585 TITLE OFFICER: BRIAN JON SMITH FAX (909) 890-3609 LOAN NO.: TO: 451 E. Vanderbilt Way, Suite 350 San Bernardino, CA 92408- ATTN: YOUR REFERENCE: SHORT TERM RATE: PROPERTY ADDRESS: 7667 Lucerne Vista, Yucca Valley, California 92284 EFFECTIVE DATE: June 22, 2012, 07:30 A.M. The form of policy or policies of title insurance contemplated by this report is: American Land ALTA Owner?s Policy (6/17/06) ALTA Loan Policy (6/17/06) 1. THE ESTATE OR INTEREST IN THE LAND HERINAFTER DESCRIBED OR REFERRED TO COVERED BY THIS REPORT IS: A FEE 2. TITLE TO SAID ESTATE OR INTEREST AT THE DATE HEREOF IS VESTED IN: Hoyt W. Mcdaniel and Louibe Mcdaniel, trustees, or their successors in trust, under the Mcdaniel family trust dated 3,14,1991 3. THE LAND REFERRED TO HEREIN BELOW IS SITUATED IN THE CITY OF City of Yucca Valley, COUNTY OF SAN BERNARDINO, STATE OF CALIFORNIA, AND IS DESCRIBED AS FOLLOWS: SEE EXHIBIT 'ONE' ATTACHED HERETO AND MADE A PART HEREOF

EXHIBIT ONE THE LAND REFERRED TO HEREIN BELOW IS SITUATED IN THE CITY OF YUCCA VALLEY, COUNTY OF SAN BERNARDINO, STATE OF CALIFORNIA, AND IS DESCRIBED AS FOLLOWS: THE NORTH 31.85 FEET OF LOT 40, TRACT NO. 3498, YUCCA CORRAL ACRES UNIT NO. 2, AS PER PLAT RECORDED IN BOOK 46, PAGE 39 OF MAPS, RECORDS OF SAID COUNTY. EXCEPTING THEREFROM THE SOUTH 1.77 FEET THEREOF. Assessors Parcel No: 0587-273-26-0-000

AT THE DATE HEREOF, ITEMS TO BE CONSIDERED AND EXCEPTIONS TO COVERAGE IN ADDITION TO THE PRINTED EXCEPTIONS AND EXCLUSIONS IN SAID POLICY FORM WOULD BE AS FOLLOWS: 1. Western Regional Exceptions for 2006 ALTA Policies 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: 1. (a) Taxes or assessments that are not shown as existing liens by the records of anytaxing authority that levies taxes or assessments on real property or by the Public Records or (b) proceedings by a public agency that may result in taxes or assessments, or notices of such proceedings, whether or not shown by the records of such agency or by the Public Records. 2. Any facts, rights, interests or claims that are not shown by the Public Records, but that could be ascertained by an inspection of the land or that may be asserted by persons in possession of the land. 3. Easements, liens or encumbrances, or claims thereof, not shown by the Public Records. 4. 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 and not shown by the Public Records. 5. (a) Unpatented mining claims, (b) reservations or exceptions in patents or in Acts authorizing the issuance thereof or (c) water rights, claims or title to water, whether or not the matters excepted under (a), (b) or (c) are shown by the Public Records. 6. Any lien or right to a lien for services, labor or material not shown by the Public Records. Note: The above exceptions will not show on the 2006 ALTA Lender's policy of title insurance. 2. Property taxes which are a lien not yet due and payable, including any assessments collected with taxes to be levied for the fiscal year 2012. 3. The lien of supplemental taxes, if any, assessed pursuant to the provisions of Chapter 3.5 (Commencing with Section 75) of the Revenue and Taxation Code of the State of California. 4. Any liens or other assessments, bonds, or special district liens, including without limitation Community Facility Districts that arise by reason of any local City, Municipal or County Project or Special District. 5. Water rights, claims or title to water, whether or not disclosed by the public records. 6. Easement(s) for the purpose(s) shown below and rights incidental thereto as granted in a document Granted to: Purpose: Recorded: Affects: As provided therein Pole Lines, Instrument No. Book 543 Page 266 of Official Records. not set out The exact location and extent of said easement is not disclosed of record. 7. A building set-back line, affecting the Southerly 50 Feet feet, as disclosed by the map of said tract. 8. Covenants, conditions and restrictions (deleting therefrom any restrictions indicating any preference, limitation or discrimination based on race, color, religion, sex, handicap, familial status or national origin) as set forth in the document

Recorded: as Instrument No., Book 2515 Page 404 of Official Records Said covenants, conditions and restrictions provide that a violation thereof shall not defeat the lien of any mortgage or deed of trust made in good faith and for value. 9. Easement(s) for the purpose(s) shown below and rights incidental thereto as granted in a document Granted to: Purpose: Recorded: Affects: not Set Out Pole Lines and Conduits, Instrument No. Book 2546 Page 133 of Official Records. Over, across or beneath all streets, alleys, highway, public places, public utility easements and all division property lines except such lines as coincide with Boundary lines of streets and alleys as shown on map of said Tract. 10. A deed of trust to secure an indebtedness in the amount shown below, and any other obligations secured thereby Amount: $6,678.72 Dated: March 25, 1984 Trustor: Hoyt W. Mc Daniel and Louise Mc Daniel husband and wife, as joint tenants Trustee: United Communitites Corporation Beneficiary: Central Bank a State Banking Corporation, its successors and assigns Loan No.: not shown Recorded: 03/30/1984, Instrument No. 1984-73969, Book, Page, of Official Records. NOTE: Amended Civil Code Section 2941, which becomes effective January 1, 2002, sets the fee for the processing and recordation of the reconveyance of each Deed of Trust being paid off through this transaction at $45.00. The reconveyance fee must be clearly set forth in the Beneficiary "Payoff Demand Statement". In addition, an assignment or authorized release of that fee, from the Beneficiary to the Trustee of record, must be included. An example of the required language is as follows:the Beneficiary identified above hereby assigns, releases or transfers to the Trustee of record, the sum of $45.00, included herein as "Reconveyance Fees", for the processing and recordation of the Reconveyance of the Deed of Trust securing the indebtedness covered hereby, and the escrow company or title company processing this pay-off is authorized to deduct the Reconveyance Fee from this Demand and forward said fee to the Trustee of record or the successor Trustee under the Trust Deed to be paid off in full.in the event that the reconveyance fee and the assignment, release or transfer are not included within the Demand Statement, then Fidelity National Title Insurance Company and its Underwritten Agent may decline to process the reconveyance and will be forced to return all documentation to the Beneficiary for compliance with the requirements of the revised statute. 11. Any invalidity or defect in the title of the Vestees in the event that the trust referred to herein is invalid or fails to grant sufficient powers to the trustee(s) or in the event there is a lack of compliance with the terms and provisions of the trust instrument. If title is to issued in the trustee(s) of a trust, (or if their act is to be insured), this Company will require atrust Certification pursuant to California Probate Code Section 18100.5. The Company reserves the right to except additional items and/or make additional requirements after reviewing said documents. 12. This company will require a statement of information from the parties named below in order to complete this report, based on the effect of documents, proceedings, liens, decrees, or other matters which do not specifically describe said land, but which, if any do exist, may affect the title or impose liens or encumbrances thereon. After review of the requested Statement(s) of Information the Company may have additional requirements before the issuance of any policy of title insurance. Party(ies): STANLEY LEVIN

(Note: The statement of information is necessary to complete the search and examination of title under this order. Any title search includes matters that are indexed by name only, and having a completed statement of information assists the Company in the elimination of certain matters which appear to involve the parties but in fact affect another party with the same or similar name. Be assured that the statement of information is essential and will be kept strictly confidential to this file). ',')) 13. Your application for title insurance was placed by reference to a street address only. Based on our records, we believe that the description in this report covers the parcel that you requested. To prevent errors and to be certain that the proper parcel of land will appear on the documents and on the policy of title insurance, we require written approval of the legal description in this report be sent to this Company, signed by the parties to the transaction. END OF ITEMS

Note 1. The current owner does NOT qualify for the $20.00 discount pursuant to the coordinated stipulated judgments entered into actions filed by both the Attorney General and private class action plaintiff for the herein described property. Note 2. Note 3. None of the items shown in this report will cause the Company to decline to attach CLTA Endorsement Form 100 to an Extended Coverage Policy, when issued. The Company is not aware of any matters which would cause it to decline to attach the CLTA Endorsement Form 116 indicating that there is located on said land a Single Family Residence known as 7667 Lucerne Vista, Yucca Valley, CA 92284 to an Extended Coverage Loan Policy. Note: 4. Property taxes for the fiscal year shown below are PAID. For proration purposes the amounts are: APN: 0587-273-26-0-000 Fiscal year: 2011 1st Installment: 377.98 2nd Installment: 377.94 Exemption: 7,000.00 Land: 3,433.00 Improvements: 64,660.00 Personal Property: 0.00 Code Area: 023-000 Tax Bill No.: 110471438 Note 5. There are NO deeds affecting said land, recorded within twenty-four (24) months of the deed of this report. Note 6. Unless this company is in receipt of WRITTEN instructions authorizing a particular policy, Fidelity Title will AUTOMATICALLY issue the American Land Title Association Homeowner's Policy (02/03/10) for all qualifying residential 1-4 properties/transactions to insure the buyer at the close of escrow. Note 7. Wiring Instructions for FIDELITY NATIONAL TITLE INSURANCE COMPANY, INLAND EMPIRE, California, are as follows: Bank Name: Routing Number: 122016066 Account Name: City National Bank 555 South Flower Street, 21st Floor Los Angeles, CA 90071 Specialty Deposits Fidelity National Title (Inland Empire Payoff Trust Account) Account Number: 555 040466 Title Officer: BRIAN JON SMITH FAX (909) 890-3609 Title Order No.: 33418585 This information is to be included in the wire text.

Note 9. Note 10. The RESPA Rule to Simplify and Improve the Process of Obtaining Mortgages and Reduce Consumer Settlement Cost includes a provision for average charges, allowing settlement service providers to establish an average recording fee. Transactions closing after April 1, 2012; the average recording charge for all residential loan transactions (including refinances) is $75.00 and the charge for all residential sale transactions with a purchase money loan is $90.00. Divide the average between the buyer and seller as per contract or local custom. The average charge is applied regardless of the number of documents recorded in the transaction, the number of pages in each document or the actual recording charges. If your transaction is not a residential loan or sale with a new loan, please contact your title professional for the actual recording charges. Part of the RESPA Rule to Simplify and Improve the Process of Obtaining Mortgages and Reduce Consumer Settlement Costs requires the settlement agent to disclose the agent and underwriter split of title premiums, including endorsements as follows: Line 1107 is used to record the amount of the total title insurance premium, including endorsements, that is retained by the title agent. Fidelity National Title Company retains 88% of the total premium and endorsements. Line 1108 used to record the amount of the total title insurance premium, including endorsements, that is retained by the title underwriter. Fidelity National Title Insurance Company retains 12% of the total premium and endorsements. Note 11. If the county recorder, title insurance company, escrow company, real estate agent or association provides a copy of the declaration, governing document or deed to any person, California law requires that the document provided shall include a statement regarding any unlawful restriction. Said statement is to be in at least 14-point bold faced typed and may be stamped on the first page of any document provided or included as a cover page attached to the requested document. Should a party to this transaction request a copy of any document reported herein that fits this category, the statement is to be included in the manner described. END OF NOTES