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Supplemental Escrow Instructions - 2252 Fairview Ave - 2017-09-06
♦M L Ryt �1 First American 18500 Von Karman Ave Ste 600, Irvine CA 92612 Orange IIIIIIAIHAHIAH * o �� 1 0 0 2 0 1 6 0 7 1 1 0 2 1 0 7 4 7 * Transmittal 09/06/2017 Order No: 866909 Costa Mesa Sanitary District 290 Paularino Ave,Attn: Scott Carroll Costa Mesa CA 92626 Enclosed please find 5 attached documents. First American Title Insurance Company National Commercial Services Page Count 24 Ryan Hahn/ • M' Escrow Officer First American rhahn@firstam.com 18500 Von Karman Ave,Suite 600 _ /r✓w Title Insurance Company Irvine,CA 92612 1 M AT I O'J A L COMMERCIAL SERVICES Phone Number:(949)885-2472 FAX:(877)372-0261 Costa Mesa Sanitary District September 6, 2017 Attn: Scott Carroll / Wendy Davis 290 Paularino Avenue Costa Mesa, CA 92626 Re: Property: 2252 Fairview Avenue Costa Mesa, CA 92627 File No: NCS-866909-SA1 ( RH) Dear Scott and Wendy: Regarding your purchase of the property referenced above, First American Title Insurance Company National Commercial Services will be handling your transaction. In connection with the above referenced transaction: COMPLETE IN FULL and/or SIGN AND RETURN the enclosed items: • Buyer Information Request • Preliminary Change of Ownership Report • W-9 Form PLEASE SIGN AND RETURN, retain the copy for your records: • Supplemental Escrow Instructions In order to expedite the processing of your escrow, please email the enclosed completed documents to Ryan Hahn at rhahn@firstam.com or fax (877)372-0261. Please note that all original recordable documents must be sent directly to escrow. Should you have any questions or need further assistance, please contact the undersigned. We appreciate the opportunity to serve you. Sincerely, Ryan Hahn Escrow Officer First American Title Insurance Company RH/st BOE-502-A(P3)REV. 12(05-13) ADDITIONAL INFORMATION Please answer all questions in each section,and sign and complete the certification before filing.This form may be used in all 58 California counties.If a document evidencing a change in ownership is presented to the Recorder for recordation without the concurrent filing of a Preliminary Change of Ownership Report,the Recorder may charge an additional recording fee of twenty dollars($20). NOTICE:The property which you acquired may be subject to a supplemental assessment in an amount to be determined by the County Assessor. Supplemental assessments are not paid by the title or escrow company at close of escrow,and are not included in lender impound accounts.You may be responsible for the current or upcoming property taxes even if you do not receive the tax bill. NAME AND MAILING ADDRESS OF BUYER: Please make necessary corrections to the printed name and mailing address. Enter Assessor's Parcel Number, name of seller, buyer's daytime telephone number, buyer's email address,and street address or physical location of the real property. NOTE:Your telephone number and/or email address is very important.If there is a question or a problem,the Assessor needs to be able to contact you. MAIL PROPERTY TAX INFORMATION TO: Enter the name,address,city,state,and zip code where property tax information should be mailed.This must be a valid mailing address. PRINCIPAL RESIDENCE:To help you determine your principal residence,consider(1)where you are registered to vote, (2)the home address on your automobile registration,and(3)where you normally return after work.If after considering these criteria you are still uncertain,choose the place at which you have spent the major portion of your time this year.Check YES if the property is intended as your principal residence, and indicate the date of occupancy or intended occupancy. PART 1:TRANSFER INFORMATION If you check YES to any of these statements,the Assessor may ask for supporting documentation. C,D,E,F:If you checked YES to any of these statements,you may qualify for a property tax reassessment exclusion,which may allow you to maintain your property's previous tax base.A claim form must be filed and all requirements met in order to obtain any of these exclusions.Contact the Assessor for claim forms. NOTE:If you give someone money or property during your life,you may be subject to federal gift tax.You make a gift if you give property(including money),the use of property,or the right to receive income from property without expecting to receive something of at least equal value in return.The transferor(donor)may be required to file Form 709, Federal Gift Tax Return,with the Internal Revenue Service if they make gifts in excess of the annual exclusion amount. G:Check YES if the reason for recording is to correct a name already on title[e.g., Mary Jones,who acquired title as Mary J. Smith, is granting to Mary Jones].This is not for use when a name is being removed from title. H:Check YES if the change involves a lender,who holds title for security purposes on a loan, and who has no other beneficial interest in the property. "Beneficial interest"is the right to enjoy all the benefits of property ownership.Those benefits include the right to use,sell, mortgage,or lease the property to another.A beneficial interest can be held by the beneficiary of a trust, while legal control of the trust is held by the trustee. I:A"cosigner"is a third party to a mortgage/loan who provides a guarantee that a loan will be repaid.The cosigner signs an agreement with the lender stating that if the borrower fails to repay the loan,the cosigner will assume legal liability for it. M:This is primarily for use when the transfer is into,out of,or between legal entities such as partnerships,corporations,or limited liability companies. Check YES only if the interest held in each and every parcel being transferred remains exactly the same. N:Check YES only if property is subject to subsidized low-income housing requirements with governmentally imposed restrictions; property may qualify for a restricted valuation method(i.e., may result in lower taxes). 0:If you checked YES,you may qualify for a new construction property tax exclusion.A claim form must be filed and all requirements met in order to obtain the exclusion.Contact the Assessor for a claim form. PART 2:OTHER TRANSFER INFORMATION A:The date of recording is rebuttably presumed to be the date of transfer.If you believe the date of transfer was a different date(e.g.,the transfer was by an unrecorded contract,or a lease identifies a specific start date), put the date you believe is the correct transfer date.If it is not the date of recording,the Assessor may ask you for supporting documentation. B:Check the box that corresponds to the type of transfer. If OTHER is checked, please provide a detailed description.Attach a separate sheet if necessary. BOE-502-A(P4)REV. 12(05-13) PART 3:PURCHASE PRICE AND TERMS OF SALE It is important to complete this section completely and accurately.The reported purchase price and terms of sale are important factors in determining the assessed value of the property,which is used to calculate your property tax bill.Your failure to provide any required or requested information may result in an inaccurate assessment of the property and in an overpayment or underpayment of taxes. A.Enter the total purchase price,not including closing costs or mortgage insurance. "Mortgage insurance"is insurance protecting a lender against loss from a mortgagor's default,issued by the FHA or a private mortgage insurer. B.Enter the amount of the down payment,whether paid in cash or by an exchange.If through an exchange,exclude the closing costs. "Closing costs"are fees and expenses,over and above the price of the property,incurred by the buyer and/or seller,which include title searches,lawyer's fees,survey charges,and document recording fees. C.Enter the amount of the First Deed of Trust, if any.Check all the applicable boxes,and complete the information requested. A"balloon payment"is the final installment of a loan to be paid in an amount that is disproportionately larger than the regular installment. D.Enter the amount of the Second Deed of Trust,if any.Check all the applicable boxes,and complete the information requested. E.If there was an assumption of an improvement bond or other public financing with a remaining balance,enter the outstanding balance,and mark the applicable box. An"improvement bond or other public financing"is a lien against real property due to property-specific improvement financing,such as green or solar construction financing,assessment district bonds, Mello-Roos(a form of financing that can be used by cities,counties and special districts to finance major improvements and services within the particular district)or general improvement bonds,etc.Amounts for repayment of contractual assessments are included with the annual property tax bill. F.Enter the amount of any real estate commission fees paid by the buyer which are not included in the purchase price. G.If the property was purchased through a real estate broker,check that box and enter the broker's name and phone number.If the property was purchased directly from the seller(who is not a family member of one of the parties purchasing the property),check the"Direct from seller"box.If the property was purchased directly from a member of your family,or a family member of one of the parties who is purchasing the property,check the "From a family member"box and indicate the relationship of the family member(e.g.,father,aunt,cousin,etc.).If the property was purchased by some other means(e.g.,over the Internet,at auction,etc.),check the"OTHER"box and provide a detailed description(attach a separate sheet if necessary). H.Describe any special terms(e.g.,seller retains an unrecorded life estate in a portion of the property,etc.),seller concessions(e.g.,seller agrees to replace roof,seller agrees to certain interior finish work,etc.), broker/agent fees waived(e.g.,fees waived by the broker/agent for either the buyer or seller),financing, buyer paid commissions,and any other information that will assist the Assessor in determining the value of the property. PART 4:PROPERTY INFORMATION A.Indicate the property type or property right transferred. Property rights may include water,timber, mineral rights,etc. B.Check YES if personal, business property or incentives are included in the purchase price in Part 3.Examples of personal or business property are furniture,farm equipment, machinery,etc. Examples of incentives are club memberships(golf, health,etc.),ski lift tickets, homeowners'dues,etc. Attach a list of items and their purchase price allocation.An adjustment will not be made if a detailed list is not provided. C.Check YES if a manufactured home or homes are included in the purchase price.Indicate the purchase price directly attributable to each of the manufactured homes.If the manufactured home is registered through the Department of Motor Vehicles in lieu of being subject to property taxes, check NO and enter the decal number. D.Check YES if the property was purchased or acquired with the intent to rent or lease it out to generate income,and indicate the source of that anticipated income.Check NO if the property will not generate income,or was purchased with the intent of being owner-occupied. E.Provide your opinion of the condition of the property at the time of purchase.If the property is in"fair"or"poor"condition,include a brief description of repair needed. IMPORTANT INFORMATION ABOUT THE COMPLETION OF THIS FORM PENALTIES ASSESSED BY THE TAX COLLECTOR FOR NON-COMPLETION HAVE INCREASED CA Senate Bill 507 signed into Law and effective in 2012 amends Sections of the Revenue and Taxation Code relating to taxation, increasing the penalties imposed for failure to file a change of ownership report. Because of the potential for significantly higher penalties, it is very important that you: 1) Complete the Preliminary Change of Ownership Report ("PCOR") with all information; 2) Ensure that the mailing address for the grantee is complete and accurate to ensure that the Assessor can contact you with any inquiries. The Title Company/Escrow Officer cannot help you complete this document because of liability reasons. If you are unable to complete the PCOR or it is rejected for filing, the County will charge an additional $20 fee and the Assessor will mail notification to you requesting completion of the PCOR. If you don't complete and return the PCOR at that time,a penalty can be assessed and added to your tax bill. ki BOE-502-A(P1)REV. 12(05-13) FOR RECORDER'S USE ONLY PRELIMINARY CHANGE OF OWNERSHIP REPORT To be completed by the transferee (buyer) prior to a transfer of subject property, in accordance with section 480.3 of the Revenue and Taxation Code. A Preliminary Change of Ownership Report must be filed with each conveyance in the County Recorder's office for the county where the property is located. NAME AND MAILING ADDRESS OF BUYER/TRANSFEREE (Make necessary corrections to the printed name and mailing address) ASSESSOR'S PARCEL NUMBER Costa Mesa Sanitary District 419-091-03 SELLER/TRANSFEROR Dream Big Investments,LLC BUYER'S DAYTIME TELEPHONE NUMBER (qqq G46- Q*oo A- 223 BUYER'S EMAIL ADDRESS fbc-ia ret>1le C r►scic . . 0v' STREET ADDRESS OR PHYSICAL LOCATION OF REAL PROPERTY 2252 Fairview Avenue,Costa Mesa,CA 92627 MAIL PROPERTY TAX INFORMATION TO(NAME) C.c.4.4-c !4 SGr (44 1::4i b'1/4-eI c ADigO 'PCrttto4,►na N.)6-ESS CITY STATE ZIP CODE !.. Cos-k-A Mc 6 it GPr- G uzl. YES NO This property is intended as my principal residence.If YES, please indicate the date MO DAY YEAR of occupancy or intended occupancy. PART 1.TRANSFER INFORMATION Please complete all statements. This section contains possible exclusions from reassessment for certain types of transfers. YES NO A. This transfer is solely between spouses(addition or removal of a spouse,death of a spouse,divorce settlement,etc.). IX B. This transfer is solely between domestic partners currently registered with the California Secretary of State(addition or removal of a partner,death of a partner,termination settlement etc.). *C. This is a transfer: I I between parent(s)and child(ren) from grandparent(s)to grandchild(ren). Ip I I )< *D. This transfer is the result of a cotenant's death.Date of death ')( *E. This transaction is to replace a principal residence by a person 55 years of age or older. Within the same county? n YES NO Il *F. This transaction is to replace a principal residence by a person who is severely disabled as defined by Revenue and Taxation Code section 69.5.Within the same county? YES NO )X G. This transaction is only a correction of the name(s)of the person(s)holding title to the property(e.g.,a name change upon marriage). If YES,please explain: Igl H. The recorded document creates,terminates,or reconveys a lender's interest in the property. )Cl I. This transaction is recorded only as a requirement for financing purposes or to create,terminate,or reconvey a security interest (e.g.,cosigner).If YES,please explain: IX J. The recorded document substitutes a trustee of a trust,mortgage,or other similar document. K. This is a transfer of property: X 1.to/from a revocable trust that may be revoked by the transferor and is for the benefit of the transferor,and/or I the transferor's spouse registered domestic partner. XI 2.to/from a trust that may be revoked by the creator/grantor/trustor who is also a joint tenant,and which f names the other joint tenant(s)as beneficiaries when the creator/grantor/trustor dies. I I 17e1 3.to/from an irrevocable trust for the benefit of the I creator/grantor/trustor and/or grantor's/trustor's spouse grantor's/trustor's registered domestic partner. I I X L. This property is subject to a lease with a remaining lease term of 35 years or more including written options. tl M. This is a transfer between parties in which proportional interests of the transferor(s)and transferee(s)in each and every parcel � being transferred remain exactly the same after the transfer. I I )e1 I N. This is a transfer subject to subsidized low-income housing requirements with governmentally imposed restrictions. )(I *0. This transfer is to the first purchaser of a new building containing an active solar energy system. *Please refer to the instructions for Part 1. Please provide any other information that will help the Assessor understand the nature of the transfer. THIS DOCUMENT IS NOT SUBJECT TO PUBLIC INSPECTION BOE-502-A(P2)REV. 12(05-13) PART 2.OTHER TRANSFER INFORMATION Check and complete as applicable. A. Date of transfer,if other than recording date: B. Type of transfer: IX Purchase I I Foreclosure ❑Gift ❑Trade or exchange ❑Merger,stock,or partnership acquisition(Form BOE-100-B) Contract of sale.Date of contract: n Inheritance.Date of death: Sale/leaseback ❑Creation of a lease ❑Assignment of a lease ❑Termination of a lease.Date lease began: Original term in years(including written options) Remaining term in years(including written options). Other.Please explain: C. Only a partial interest in the property was transferred. ❑YES ®NO If YES,indicate the percentage transferred: PART 3.PURCHASE PRICE AND TERMS OF SALE Check and complete as applicable. _ A. Total purchase price $ 1,690,000.00 B. Cash down payment or value of trade or exchange excluding closing costs Amount$ 1/. O tooa C. First deed of trust @ %interest for years. Monthly payment$ Amount$ n'G 17 FHA(_Discount Points) ❑ Cal-Vet ❑VA(_Discount Points) ❑ Fixed rate n Variable rate n Bank/Savings&Loan/Credit Union ❑ Loan carried by seller ❑ Balloon payment$ Due date: D. Second deed of trust @ %interest for years.Monthly payment$ Amount$ h/G Fixed rate ❑Variable rate 7 Bank/Savings&Loan/Credit Union❑ Loan carried by seller 7 Balloon payment$ Due date: E. Was an Improvement Bond or other public financing assumed by the buyer?OYES ©NO Outstanding balance$ F. Amount,if any,of real estate commission fees paid by the buyer which are not included in the purchase price $ h/4 G. The property was purchased: ❑Through real estate broker.Broker name: Phone number: ( ) g Direct from seller ❑From a family member-Relationship ❑Other.Please explain: H. Please explain any special terms,seller concessions,broker/agent fees waived,financing,and any other information(e.g.,buyer assumed the existing loan balance)that would assist the Assessor in the valuation of your property. PART 4: PROPERTY INFORMATION Check and complete as applicable. A. Type of property transferred n Single-family residence ❑Co-op/Own-your-own ❑Manufactured home n Multiple-family residence.Number of units: ❑Condominium ❑Unimproved lot n Other.Description:(i.e.,timber,mineral,water rights,etc.) ❑Timeshare ®Commercial/Industrial B. YES ©NO Personal/business property,or incentives,provided by seller to buyer are included in the purchase price.Examples of personal property are furniture,farm equipment,machinery,etc.Examples of incentives are club memberships,etc.Attach list if available. If YES,enter the value of the personal/business property: $ Incentives$ C. 7 YES ®NO A manufactured home is included in the purchase price. If YES,enter the value attributed to the manufactured home: $ YES I 'NO The manufactured home is subject to local property tax.If NO,enter decal number: D. n YES ®NO The property produces rental or other income. If YES,the income is from: ❑Lease/rent ❑Contract n Mineral rights I I Other: E. The condition of the property at the time of sale was: 7 Good ®Average ❑Fair ❑Poor Please describe: p/pV� beAkS'h}-6.6.s l s" CERTIFICATION I certify(or dec/are)that the foregoing and all information hereon,including any accompanying statements or documents,is true and correct to the best of my knowledge and belief. SIGNATURE OF RE OR CORPORATE R DATE TELEPHONE AME OF BUYER/TRANSFEREE/LEGAL REPRESENTATIVE/CORPORATE OFFICER(PLEASE PRINT) TITLE E-MAIL ADDRESS S CAZIA Call ctt Cxreec,t MaAagei , ,CedIolt Cr 6dc4 .go'J The Assessor's office may contact you for additional information regarding this transaction. Ryan Hahn `,• Escrow Officer First American rhahn@firstam.com 18500 Von Karman Ave Suite 600 Title Insurance Company Irvine,CA 92612 NATIONAL. COM tvi F C.I AL S F R V{C E c Phone Number:(949)885-2472 FAX: (877)372-0261 File No.: NCS-866909-SA1 Buyer / Borrower Information Request Please supply us the information below in order to expedite our escrow. New Lender is: a A &26t1, Loan Officer: Phone: Fax: E-Mail: Name of Insurance Co. is: 11/a Agent: Phone: Fax: E-Mail: Buyer/Borrower Contact Information: Mail Correspondence to: 2.90 Pau la,- AO AVe C064-rn C064- FiGe0.4 cA- RZGZL Home Phone: N/l8c- Office Phone: 441 - (AE 6t00 !)6.1" Cell: a Lf ct - 2.13- I$ Fax: 9 - 460- 22..6 E-Mail: Loci Q.v I S e C MSZJ Glc .oro / *if the above address you've supplied is a P.O. Box, do you have a physical address should we need to overnight something in the future? Yes, the address is: First American Title Insurance Company National Commercial File No.: NCS-866909-SA1 (RH) Services 18500 Von Karman Ave, Suite 600 Date: 08/30/2017 Irvine, CA 92612 Costa Mesa Sanitary District By: ��141101- _ r Name: bco* Carroll Title: Geewa t Hemel ✓ By: Name: Title: Form W'9 Request for Taxpayer Give Form to the (Rev.December Identification Number and Certification requester. Do not Department of the Treasury send to the IRS. Internal Revenue Service 1 Name(as shown on your income tax return).Name is required on this line;do not leave this line blank. CDS IN 44.4 San c.t- r'i 2 Business name/disregarded entity name,if different from above a, a 3 Check appropriate box for federal tax classification;check only one of the following seven boxes: 4 Exemptions(codes apply only to Individual/sole proprietor or I I C Corporation S Corporation I Partnership I I Trust/estate certain entities,not individuals;see instructions on page 3): Si c single-member LLC Exempt payee code(if any) G Limited liability company.Enter the tax classification(C=C corporation,S=S corporation,P=partnership) ► Exemption from FATCA reporting a+ H Note.For a single-member LLC that is disregarded,do not check LLC;check the appropriate box in the line above for code(if any) C1.4 the tax classification of the single-member owner. L a u I Other(see instructions) ► V VG/t'1 l/MG e�ti4 �tG41/i cr (Applies to accounts maintained outside the U.S.) u 5 Address(number,st,ecl,and apt.or suite no.) Requester's name and address(optional) o. 19A o -P44,414,-1 n a Ave- tif 6 City,state,and ZIP code C on 1,4€.4,4 Oak azLZG 7 List account number(s)here/(optional) Part I Taxpayer Identification Number(TIN) Enter your TIN in the appropriate box.The TIN provided must match the name given on line 1 to avoid Social security number backup withholding. For individuals,this is generally your social security number(SSN).However,for a resident alien,sole proprietor,or disregarded entity,see the Part I instructions on page 3.For other - - entities,it is your employer identification number(EIN).If you do not have a number,see How to get a TIN on page 3. or Note.If the account is in more than one name,see the instructions for line 1 and the chart on page 4 for Employer identification number guidelines on whose number to enter. q 6 , O d 3 4 3 9 Part II Certification Under penalties of perjury,I certify that: 1. The number shown on this form is my correct taxpayer identification number(or I am waiting for a number to be issued to me),and 2. I am not subject to backup withholding because: (a)I am exempt from backup withholding,or(b)I have not been notified by the Internal Revenue Service(IRS)that I am subject to backup withholding as a result of a failure to report all interest or dividends,or(c)the IRS has notified me that I am no longer subject to backup withholding,and 3. I am a U.S.citizen or other U.S.person(defined below),and 4. The FATCA code(s)entered on this form(if any)indicating that I am exempt from FATCA reporting is correct. Certification instructions.You must cross out item 2 above if you have been notified by the IRS that you are currently subject to backup withholding because you have failed to report all interest and dividends on your tax return. For real estate transactions,item 2 does not apply.For mortgage interest paid,acquisition or abandonment of secured property,cancellation of debt,contributions to an individual retirement arrangement(IRA),and generally,payments other than interest and dividends,you are not required to sign the certification, but you must provide your correct TIN. See the instructions on page 3. Sign signature of c Here u.s.person 4 Date ► Wi/o241�- •Form 1098(home mortgage nterest), 1098-E(student loan interest), General Instructions 1098-T(tuition) Section references are to the Internal Revenue Code unless otherwise noted. •Form 1099-C(canceled debt) Future developments.Information about developments affecting Form •Form 1099-A(acquisition or abandonment of secured property) W-9(such as legislation enacted after we release it)is at www.irs.gov/fw9. Use Form W-9 only if you are a U.S. person(including a resident alien), Purpose of Form to provide your correct TIN. An individual or entity(Form W-9 requester)who is required to file an If you do not return Form W-9 to the requester with a TIN,you might be information return with the IRS must obtain your correct taxpayer subject to backup withholding.See What is backup withholding?on page 2. identification number(TIN)which may be your social security number (SSN),individual taxpayer identification number(ITIN),adoption taxpayer By signing the filled-out form,you: identification number(ATIN),or employer identification number(EIN),to 1. Certify that the TIN you are giving is correct(or you are waiting for a report on an information return the amount paid to you,or other amount number to be issued), reportable on an information return. Examples of information returns 2.Certify that you are not subject to backup withholding,or include,but are not limited to,the following: •Form 1099-INT(interest earned or paid) 3.Claim exemption from backup withholding if you are a U.S.exempt •Form 1099-DIV(dividends,including those from stocks or mutual funds) payee.If applicable,you are also certifying that as a U.S. person,your •Form 1099-MISC(various types of income,prizes,awards,or gross allocable share of any partnership income from a U.S.trade or business is proceeds) not subject to the withholding tax on foreign partners'share of effectively •Form 1099-B(stock or mutual fund sales and certain other transactions connected income,and by brokers) 4.Certify that FATCA code(s)entered on this form(if any)indicating that •Form 1099-S(proceeds from real estate transactions) you are exempt from the FATCA reporting, is correct. See What is FATCA •Form 1099-K(merchant card and third party network transactions) reporting?on page 2 for further information. Cat.No.10231X Form W-9(Rev.12-2014) 18500 Von Karman Ave,Suite 600 .+ Irvine,CA 92612 -- , First American Tale Insurance Cornpan NATIONAL commFRCim SERVICES SUPPLEMENTAL ESCROW INSTRUCTIONS ESCROW NO.: NCS-866909-SA1 DATE: 08/30/2017 First American Title Insurance Company is hereby handed by the undersigned parties, that certain "original" document entitled Purchase and Sale Agreement dated August 22, 2017 executed by and between Dream Big Investments LLC, ("seller") and Costa Mesa Sanitary District, ("buyer"). )• First American Title Insurance Company is hereby requested to accept the " Purchase and Sale Agreement dated August 22, 2017" as its escrow instructions and to act as escrow agent for the parties in accordance with the terms and conditions contained in said document. Each of the parties to this escrow specifically acknowledges that the consummation of this escrow is contingent upon compliance with some or all of the executory terms and provisions of this "Agreement", and that the parties to this "Agreement" are and shall be the sole persons entitled to and authorized to determine whether all of said executory terms and provisions due to be performed prior to the close of escrow have been met or complied with prior to such close. Accordingly, the parties hereby agree that prior to the scheduled close of escrow they shall each deposit with Escrow Holder a written instruction or acknowledgement specifying that all the executory terms and provisions of this "Agreement", insofar as the same pertain to each said party respectively and any obligation of escrow holder relative thereto, have been fully met or complied with, or are waived. Further, each said party shall specifically release Escrow Holder from all liability, if any, which it may have in connection with this escrow because of any party's failure to meet or comply with any such executory term or provision of this "Agreement", prior to close of escrow. Deposit of written instruction or acknowledgement with Escrow Holder shall constitute each said party's specific authorization to close this escrow. General provisions of First American Title Insurance Company, attached hereto and made a part hereof, are hereby incorporated in said "Agreement".To the extent that the agreement contains any provisions inconsistent with or contrary to the provisions of the General Provisions attached hereto, such "Agreement" shall remain as the agreement of the parties thereto but First American Title Insurance shall be guided by the terms of their General Provisions. 1. Opening Date of Escrow is September 1, 2017. Dream Big Investments, LLC, a California Costa Mesa Sanitary District limited liability company By: By: Name: S z.Dt-l.-- 1� Name: Title: Genl.✓G 1 M q,wage.+ Title: By: Name: Title: Page 1 of 6 Escrow General Provisions-REVISED JULY 22, 2014 Receipt of these provisions deems acceptance of the terms. Please read for general information about the escrow process. 1. SPECIAL DISCLOSURES: A. DEPOSIT OF FUNDS&DISBURSEMENTS Unless directed in writing to establish a separate, interest-bearing account together with all necessary taxpayer reporting information, all funds shall be deposited in general escrow accounts in a federally insured financial institution including those affiliated with Escrow Holder("depositories"). All disbursements shall be made by Escrow Holder's check or by wire transfer unless otherwise instructed in writing. The Good Funds Law (California Insurance Code 12413.1) mandates that Escrow Holder may not disburse funds until the funds are, in fact, available in Escrow Holder's account. Wire transfers are immediately disbursable upon confirmation of receipt. Funds deposited by a cashier's or certified check are generally available on the next banking day following deposit. Funds deposited by a personal check and other types of instruments may not be available until confirmation from Escrow Holder's bank which can vary from 2 to 10 days. B. DISCLOSURE OF POSSIBLE BENEFITS TO ESCROW HOLDER As a result of Escrow Holder maintaining its general escrow accounts with the depositories, Escrow Holder may receive certain financial benefits such as an array of bank services, accommodations, loans or other business transactions from the depositories ("collateral benefits"). All collateral benefits shall accrue to the sole benefit of Escrow Holder and Escrow Holder shall have no obligation to account to the parties to this escrow for the value of any such collateral benefits. C. MISCELLANEOUS FEES Escrow Holder may incur certain additional costs on behalf of the parties for services performed, or fees charged, by third parties.The fees charged by Escrow Holder for services including, but not limited to, wire transfers, overnight delivery/courier services, etc. may include a mark up over the direct cost of such services to reflect the averaging of direct, administrative and overhead charges of Escrow Holder for such services which shall, in no event, exceed $10 for each markup. D. METHOD TO DELIVER PAYOFF TO LENDERS/LIENHOLDERS To minimize the amount of interest due on any existing loan or lien, Escrow Holder will deliver the payoff funds to the lender/Iienholder as soon as Escrow Holder is able after confirmation of recordation/close of escrow and as demanded by the lender/lienholder using (a) personal delivery, (b) wire transfer, or(c) overnight delivery service, unless otherwise directed in writing by the affected party. Certain payments such as home equity line of credit payoffs ("HELOCS") may require additional time to process. 2. "CLOSE OF ESCROW"/PRORATIONS&ADJUSTMENTS The term "close of escrow" means the date on which documents are recorded. All prorations and/or adjustments shall be made to the close of escrow based on the number of actual days, unless otherwise instructed in writing. 3. CONTINGENCY PERIODS Escrow Holder shall not be responsible for monitoring contingency time periods between the parties.The parties shall execute such documents as may be requested by Escrow Holder to confirm the status of any such periods. 4. REPORTS a. Preliminary Report-Escrow Holder has neither responsibility nor liability for any title search that may be performed in connection with the issuance of a preliminary report. b. Other Reports-As an accommodation, Escrow Holder may agree to transmit orders for inspection, termite, disclosure and other reports if requested, in writing or orally, by the parties or their agents. Escrow Holder shall deliver copies of any such reports as directed. Escrow Holder is not responsible for reviewing such reports or advising the parties of the content of same. 5. INFORMATION FROM AFFILIATED COMPANIES Escrow Holder may provide the parties'information to and from its affiliates in connection with the offering of products and services from these affiliates. THIS COMPANY CONDUCTS ESCROW BUSINESS UNDER CERTIFICATE OF AUTHORITY ISSUED BY THE STATE OF CALIFORNIA DEPARTMENT OF INSURANCE. ©2014 First American Title Insurance Company and/or its affiliates. Page 1 of 4 All rights reserved.V NYSE: FAF Page 2 of 6 st/09/06/2017 6. RECORDATION OF DOCUMENTS Escrow Holder is authorized to record documents delivered through escrow which are necessary or proper for the issuance of the requested title insurance policy(ies). Buyer will provide a completed Preliminary Change of Ownership Report form ("PCOR"). If Buyer fails to provide the PCOR, Escrow Holder shall close escrow and charge Buyer any additional fee incurred for recording the documents without the PCOR. Escrow Holder is released from any liability in connection with same. 7. PERSONAL PROPERTY TAXES No examination, UCC search, insurance as to personal property and/or the payment of personal property taxes is required unless otherwise instructed in writing. 8. REAL PROPERTY TAXES Real property taxes are prorated based on the most current available tax statement from the tax collector's office. Supplemental taxes may be assessed as a result of a change in ownership or completion of construction. Adjustments due either party based on the actual new tax bill issued after close of escrow or a supplemental tax bill will be made by the parties outside of escrow and Escrow Holder is released of any liability in connection with such adjustments.The first installment of California real property.taxes is due November 1st(delinquent December 10th) and the second installment is due February 1st(delinquent April 10th). If a tax bill is not received from the County at least 30 days prior to the due date, buyer should contact the County Tax Collector's office and request one. Escrow Holder is not responsible for same. 9. CANCELLATION OF ESCROW a. Any party desiring to cancel this escrow shall deliver written notice of cancellation to Escrow Holder. Within a reasonable time after receipt of such notice, Escrow Holder shall send by regular mail to the address on the escrow instructions, one copy of said notice to the other party(ies). Unless written objection to cancellation is delivered to Escrow Holder by a party within 10 days after date of mailing, Escrow Holder is authorized, at its option, to comply with the notice and terminate the escrow. If a written objection is received by Escrow Holder, Escrow Holder is authorized, at its option, to hold all funds and documents in escrow (subject to the Funds Held in Escrow fee) and to take no other action until otherwise directed by either the parties' mutual written instructions or a final order of a court of competent jurisdiction. If no action is taken on this escrow within 6 months after the closing date specified in the escrow instructions, Escrow Holder's obligations shall, at its option, terminate. Upon termination of this escrow, the parties shall pay all fees, charges and reimbursements due to Escrow Holder and all documents and remaining funds held in escrow shall be returned to the parties depositing same. • b. Notwithstanding the foregoing, upon receipt of notice of cancellation by a seller in a transaction subject to the Home Equity Sales Contract law (CC §1695 et seq.), Escrow Holder shall have the right to unilaterally cancel the escrow and may return all documents and funds without consent by or notice to the buyer. 10.CONFLICTING INSTRUCTIONS&DISPUTES If Escrow Holder becomes aware of any conflicting demands or claims concerning this escrow, Escrow Holder shall have the right to discontinue all further acts on Escrow Holder's part until the conflict is resolved to Escrow Holder's satisfaction. Escrow Holder has the right at its option to file an action in interpleader requiring the parties to litigate their claims/rights. If such an action is filed, the parties jointly and severally agree (a)to pay Escrow Holder's cancellation charges, costs (including the Funds Held in Escrow fee) and reasonable attorneys'fees, and (b) that Escrow Holder is fully released and discharged from all further obligations under the escrow. If an action is brought involving this escrow and/or Escrow Holder, the party(ies) involved in the action agree to indemnify and hold the Escrow Holder harmless against liabilities, damages and costs incurred by Escrow Holder(including reasonable attorneys'fees and costs)except to the extent that such liabilities, damages and costs were caused by the negligence or willful misconduct of Escrow Holder. 11.FUNDS HELD IN ESCROW When funds remain in escrow over 90 days after either close of escrow or estimated close of escrow, a monthly holding fee of$25 shall be imposed by Escrow Holder that is to be charged against the funds held. 12.USURY Escrow Holder is not to be concerned with usury as to any loans or encumbrances in this escrow and is hereby released of any responsibility and/or liability therefore. THIS COMPANY CONDUCTS ESCROW BUSINESS UNDER CERTIFICATE OF AUTHORITY ISSUED BY THE STATE OF CALIFORNIA DEPARTMENT OF INSURANCE. ©2014 First American Title Insurance Company and/or its affiliates. Page 2 of 4 All rights reserved.V NYSE: FAF Page 3 of 6 st/09/06/2017 13.AMENDMENTS TO ESCROW INSTRUCTIONS Any amendment to the escrow instructions must be in writing, executed by all parties and accepted by Escrow Holder. Escrow Holder may, at its sole option, elect to accept and act upon oral instructions from the parties. If requested by Escrow Holder the parties agree to confirm said instructions in writing as soon as practicable.The escrow instructions as amended shall constitute the entire escrow agreement between the Escrow Holder and the parties hereto with respect to the subject matter of the escrow. 14.FIRE, HAZARD OR LIABILITY INSURANCE POLICIES In all matters relating to fire, hazard or liability insurance, Escrow Holder may assume that each policy is in force and that the necessary premium has been paid. Escrow Holder is not responsible for obtaining fire, hazard or liability insurance, unless Escrow Holder has received specific written instructions to obtain such insurance prior to close of escrow from the parties or their respective lenders. 15.COPIES OF DOCUMENTS; ELECTRONIC SIGNATURES;AUTHORIZATION TO RELEASE Escrow Holder is authorized to rely upon copies of documents, which include facsimile, electronic, NCR, or photocopies as if they were an originally executed document. Escrow Holder may agree to accept electronically signed documents from a platform or program approved by Escrow Holder. If requested by Escrow Holder, the originals of such documents and/or original signatures shall be delivered to Escrow Holder. Escrow Holder may withhold documents and/or funds due to the party until such originals are delivered. Documents to be recorded MUST contain original signatures. Escrow Holder may furnish copies of any and all documents to the lender(s), real estate broker(s), attomey(s) and/or accountant(s) involved in this transaction upon their request. Delivery of documents by escrow to a real estate broker or agent who is so designated in the purchase agreement shall be deemed delivery to the principal. 16.EXECUTION IN COUNTERPART The escrow instructions and any amendments may be executed in one or more counterparts, each of which shall be deemed an original, and all of which taken together shall constitute the same instruction. 17.TAX REPORTING, WITHHOLDING &DISCLOSURE The parties are advised to seek independent advice concerning the tax consequences of this transaction, including but not limited to, their withholding, reporting and disclosure obligations. Escrow Holder does not provide tax or legal advice and the parties agree to hold Escrow Holder harmless from any loss or damage that the parties may incur as a result of their failure to comply with federal and/or state tax laws. WITHHOLDING OBLIGA TIONS ARE THE EXCLUSIVE OBLIGATIONS OF THE PARTIES. ESCROW HOLDER IS NOT RESPONSIBLE TO PERFORM THESE OBLIGATIONS UNLESS ESCROW HOLDER AGREES IN WRITING. A. TAXPAYER IDENTIFICATION NUMBER REPORTING Federal law requires Escrow Holder to report seller's social security number or tax identification number(both numbers are hereafter referred to as the"TIN"), forwarding address, and the gross sales price to the Internal Revenue Service ("IRS").To comply with the USA PATRIOT Act, certain taxpayer identification information (including, but not limited to, the TIN) may be required by Escrow Holder from certain persons or entities involved (directly or indirectly) in the transaction prior to closing. Escrow cannot be closed nor any documents recorded until the information is provided and certified as to its accuracy to Escrow Holder.The parties agree to promptly obtain and provide such information as requested by Escrow Holder. B. STATE WITHHOLDING &REPORTING In accordance with Section 18662 of the Revenue and Taxation Code (R&TC), a buyer may be required to withhold an amount equal to 3 1/3% (.0333) of the sale price, or an optional gain on sale withholding amount certified by the seller in the case of a disposition of California real property interest by either: 1. A seller who is an individual, trust, estate, or when the disbursement instructions authorize the proceeds to be sent to a financial intermediary of the sellers. 2. A corporate seller that has no permanent place of business in California immediately after the transfer of title to the California property. THIS COMPANY CONDUCTS ESCROW BUSINESS UNDER CERTIFICATE OF AUTHORITY ISSUED BY THE STATE OF CALIFORNIA DEPARTMENT OF INSURANCE. ©2014 First American Title Insurance Company and/or its affiliates. Page 3 of 4 All rights reserved.V NYSE: FAF Page 4 of 6 st/09/06/2017 The buyer may become subject to penalty for failure to withhold an amount equal to the greater of 10 percent of the amount required to be withheld or five hundred dollars ($500). However, notwithstanding any other provision included in the California statutes referenced above, no buyer will be required to withhold any amount or be subject to penalty for failure to withhold if any of the following applies: 1. The sale price of the California real property conveyed does not exceed one hundred thousand dollars ($100,000). 2. The seller executes a written certificate under the penalty of perjury certifying that the seller is a corporation with a permanent place of business in California. 3. The seller, who is an individual, trust, estate, or a corporation without a permanent place of business in California, executes a written certificate under the penalty of perjury of any of the following: a. The California real property being conveyed is the seller's or decedent's principal residence (within the meaning of Section 121 of the Internal Revenue Code (IRC)). b. The last use of the property being conveyed was by the transferor as the transferor's principal residence (within the meaning of IRC Section 121). c. The California real property being conveyed is, or will be, exchanged for property of like kind (within the meaning of IRC Section 1031), but only to the extent of the amount of gain not required to be recognized for California income tax purposes under IRC Section 1031. d. The California real property has been compulsorily or involuntarily converted (within the meaning of IRC Section 1033) and the seller intends to acquire property similar or related in service or use so as to be eligible for nonrecognition of gain for California income tax purposes under IRC Section 1033. e. The California real property transaction will result in a loss or net gain not required to be recognized for California income tax purposes. The seller is subject to penalty for knowingly filing a fraudulent certificate for the purpose of avoiding the withholding requirement. Contact FTB: For additional information regarding California withholding or for the Alternative Withholding, contact the Franchise Tax Board at(toll free) 888-792-4900), by e-mail WSCS.GEN@ftb.ca.gov; or visit their website at www.ftb.ca.gov. C. FEDERAL WITHHOLDING & REPORTING Certain federal reporting and withholding requirements exist for real estate transactions where the seller(transferor) is a non-resident alien, a non-domestic corporation, partnership, or limited liability company; or a domestic corporation, partnership or limited liability company controlled by non-residents; or non-resident corporations, partnerships or limited liability companies. D. TAXPAYER IDENTIFICATION DISCLOSURE Federal and state laws require that certain forms include a party's TIN and that such forms or copies of the forms be provided to the other party and to the applicable governmental authorities. Parties to a real estate transaction involving seller-provided financing are required to furnish, disclose, and include the other party's TIN in their tax returns. Escrow Holder is authorized to release a party's TINs and copies of statutory forms to the other party and to the applicable governmental authorities in the foregoing circumstances. The parties agree to hold Escrow Holder harmless against any fees, costs, or judgments incurred and/or awarded because of the release of their TIN as authorized herein. THIS COMPANY CONDUCTS ESCROW BUSINESS UNDER CERTIFICATE OF AUTHORITY ISSUED BY THE STATE OF CALIFORNIA DEPARTMENT OF INSURANCE. ©2014 First American Title Insurance Company and/or its affiliates. Page 4 of 4 All rights reserved.V NYSE: FAF Page 5 of 6 Ryan Hahn/st/09/06/2017/NCS-866909-SA1/ 1 44, The First American Corporation First American Title Company Privacy Policy We Are Committed to Safeguarding Customer Information In order to better serve your needs now and in the future, we may ask you to provide us with certain information. We understand that you may be concerned about what we will do with such information —particularly any personal or financial information. We agree that you have a right to know how we will utilize the personal information you provide to us. Therefore, together with our parent company, The First American Corporation, we have adopted this Privacy Policy to govern the use and handling of your personal information. Applicability This Privacy Policy governs our use of the information which you provide to us. It does not govern the manner in which we may use information we have obtained from any other source, such as information obtained from a public record or from another person or entity. First American has also adopted broader guidelines that govern our use of personal information regardless of its source. First American calls these guidelines its Fair Information Values, a copy of which can be found on our website at www.firstam.com. Types of Information Depending upon which of our services you are utilizing, the types of nonpublic personal information that'we may collect include: • Information we receive from you on applications, forms and in other communications to us, whether in writing, in person, by telephone or any other means; • Information about your transactions with us, our affiliated companies, or others; and • Information we receive from a consumer reporting agency. Use of Information We request information from you for our own legitimate business purposes and not for the benefit of any nonaffiliated party. Therefore, we will not release your information to nonaffiliated parties except: (1) as necessary for us to provide the product or service you have requested of us; or (2) as permitted by law. We may, however, store such information indefinitely, including the period after which any customer relationship has ceased. Such information may be used for any internal purpose, such as quality control efforts or customer analysis. We may also provide all of the types of nonpublic personal information listed above to one or more of our affiliated companies. Such affiliated companies include financial service providers, such as title insurers, property and casualty insurers, and trust and investment advisory companies, or companies involved in real estate services, such as appraisal companies, home warranty companies, and escrow companies. Furthermore, we may also provide all the information we collect, as described above, to companies that perform marketing services on our behalf, on behalf of our affiliated companies, or to other financial institutions with whom we or our affiliated companies have joint marketing agreements. Former Customers Even if you are no longer our customer, our Privacy Policy will continue to apply to you. Confidentiality and Security We will use our best efforts to ensure that no unauthorized parties have access to any of your information. We restrict access to nonpublic personal information about you to those individuals and entities who need to know that information to provide products or services to you. We will use our best efforts to train and oversee our employees and agents to ensure that your information will be handled responsibly and in accordance with this Privacy Policy and First American's Fair Information Values. We currently maintain physical, electronic, and procedural safeguards that comply with federal regulations to guard your nonpublic personal information. Page 6 of 6 Ryan Hahn/st/09/06/2017/NCS-866909-SA1/1