SPECIAL NOTICE TO HOME BUYERS

The California Land Title Association has adopted and filed on behalf of its member companies the Homeowner's Policy of Title Insurance (6/98).

This policy provides many coverage currently offered by AL TA policy forms as well as enhanced policies currently offered by different title insurers.

The policy is in plain language and expands the number of insuring clauses to 29. This policy was designed to not only cover existing risks but also some that can arise in the future.

Some of the new coverages have only been available previously through individual endorsements.

There are also coverages offered in the new Homeowner's Policy not previously available. Some of these are as follows:

Building Permit Violation - The homeowner is covered if forced to correct or remove an existing structure (excluding boundary walls and fences) because it was built by a previous owner who did not obtain a building permit from the proper government office or agency. This completely new coverage (subject to a deductible) affords the homeowner an insurance benefit of a specified amount.

             Subdivision Map Act Coverage  - Coverage is extended to a homeowner who cannot close a sale, get a loan, or obtain a building permit because the land was improperly subdivided prior to the homeowner's purchase. This coverage was previously only available by endorsement. This coverage is also subject to a deductible and indemnity benefit as specified.

Restrictive Covenant Violations - New coverages deal with violations of restrictions, which may have occurred before the homeowner bought the property.

post. policy Forgery -This policy provides new coverage against specified forgeries which may occur in the future and cloud the homeowner's title.

post. policy Adverse Possession -This policy provides new coverage against attempts by others to claim the title by reason of continued use and dominion.

Enhanced Access -This enhances existing right of access coverage by including both pedestrian and vehicular access as well as insuring actual access.

post. policy Encroachment -The homeowner is covered if, after purchase, someone else builds a structure (excluding boundary walls and fences) which encroaches on the insured property.

Post-Policy Prescriptive Rights -This policy provides new coverage against attempts by others to claim easement rights by reason of continued use.

Structure Damage from Minerals -This policy protects homeowners whose structures, including those built to modify or replace existing structures, are damaged by others using the surface of the land in the course of extracting minerals. Some of the coverage was previously available by endorsement, however, this coverage is provided automatically and extends to structures built post-policy to modify or replace existing Structures.

Map Inconsistencies -This coverage protects against loss when the map attached to the title policy does not show the same location of the land as shown in the public records.

Living Trust Coverage -This new coverage extends to the trustee and beneficiaries of a trust who receives a deed from the homeowner after the policy date. No new policy or endorsement is required to maintain existing coverage in such transfers.

For more details on all coverages, including the coverages outlined above, please refer to the terms of the policy itself. Copies are available from your local office of Old Republic Title Company or its affiliates.

ORDER NO 498361- JG

This preliminary report: has been prepared anticipating that the Home Buyer of this property will want this coverage which is being offered, subject to the exceptions and requirements, if any, shown herein, at 110% of our filed Basic Insurance Rate (Short Term Rate, when applicable, at 88%).

If this is not the case, please date and sign below indicating you choose to decline this policy in favor of a Standard Coverage Policy at 100% of our filed Basic Insurance Rate (Short Term Rate, when applicable, at 80%)