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<br />First Ame ica
<br />. Owner's Policy of Title Insurance
<br />California (WRE) - 2021 v. 01.00 (07-01-2021)
<br />To pay or tender payment of the Amount of Insurance under this policy. In addition, the Company
<br />will pay any costs, attorneys' fees, and expenses incurred by the Insured Claimant that were
<br />authorized by the Company up to the time of payment or tender of payment and that the
<br />Company is obligated to pay.
<br />Upon the exercise by the Company of this option provided for in Condition 7.a., the Company's
<br />liability and obligations to the Insured under this policy terminate, including any obligation to
<br />defend, prosecute, or continue any litigation.
<br />b. To Pay or Otherwise Settle with Parties other than the insured or with the insured Claimant
<br />L To pay or otherwise settle with parties other than the Insured for or in the name of the
<br />Insured Claimant. In addition, the Company will pay any costs, attorneys' fees, and
<br />expenses incurred by the Insured Claimant that were authorized by the Company up to
<br />the time of payment and that the Company is obligated to pay; or
<br />ii. To pay or otherwise settle with the Insured Claimant the loss or damage provided for
<br />under this policy. In addition, the Company will pay any costs, attorneys' fees, and
<br />expenses incurred by the Insured Claimant that were authorized by the Company up to
<br />the time of payment and that the Company is obligated to pay.
<br />Upon the exercise by the Company of either option provided for in Condition 7.1b., the Company's
<br />liability and obligations to the Insured under this policy for the claimed loss or damage terminate,
<br />including any obligation to defend, prosecute, or continue any litigation.
<br />S. CONTRACT OF INDEMNITY; DETERMINATION AND EXTENT OF LIABILITY
<br />This policy is a contract of indemnity against actual monetary loss or damage sustained or incurred by an
<br />Insured Claimant who has suffered loss or damage by reason of matters insured against by this policy. This
<br />policy is not an abstract of the Title, report of the condition of the Title, legal opinion, opinion of the Title, or
<br />other representation of the status of the Title. All claims asserted under this policy are based in contract and
<br />are restricted to the terms and provisions of this policy. The Company is not liable for any claim alleging
<br />negligence or negligent misrepresentation arising from or in connection with this policy or the determination
<br />of the insurability of the Title.
<br />a. The extent of liability of the Company for loss or damage under this policy does not exceed the
<br />lesser of:
<br />I. the Amount of Insurance; or
<br />ii. the difference between the fair market value of the Title, as insured, and the fair market
<br />value of the Title subject to the matter insured against by this policy.
<br />b. Except as provided in Condition 8.c. or 8.d., the fair market value of the Title in Condition 8.a.ii. is
<br />calculated using the date the Insured discovers the defect, lien, encumbrance, adverse claim, or
<br />other matter insured against by this policy.
<br />C. If, at the Date of Policy, the Title to all of the Land is void by reason of a matter insured against by
<br />this policy, then the Insured Claimant may, by written notice given to the Company, elect to use
<br />the Date of Policy as the date for calculating the fair market value of the Title in Condition 8.a.ii.
<br />d. If the Company pursues its rights under Condition 5.b. and is unsuccessful in establishing the Title,
<br />as insured:
<br />L the Amount of Insurance will be increased by 15%; and
<br />ii. the Insured Claimant may, by written notice given to the Company, elect, as an
<br />alternative to the dates set forth in Condition 8.b. or, if it applies, 8.c., to use either the
<br />date the settlement, action, proceeding, or other act described in Condition 5.1b. is
<br />concluded or the date the notice of claim required by Condition 3 is received by the
<br />Company as the date for calculating the fair market value of the Title in Condition 8.a.ii.
<br />e. In addition to the extent of liability for loss or damage under Conditions 8.a. and 8.d., the
<br />Company will also pay the costs, attorneys' fees, and expenses incurred in accordance with
<br />Conditions 5 and 7.
<br />9. LIMITATION OF LIABILITY
<br />* Copyright 2025 First American Financial corporation. All rights reserved.
<br />All Information, data, and material created or compiled by or on behalf of First American Financial Corporation Is restricted and may not be copied
<br />The use of this Form (or any derivative thereof) is restricted to ALTA licensees and ALTA members in good standing as of the date of use. All other
<br />uses are prohibited. Reprinted under license from the American Land Title Association.
<br />Form 50125406 (5-24-22) Page 27 of 30
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<br />?025Z.,�4. ifpabaR a. PURCHASE AGREEMENT i ei...p $ �� j�a>p`A
<br />REV: 10-15-25 VR
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