Title Commitment0
CHICAGO TITLE INSURANCE COMPANY
Order No.: 231389
4th AMENDED (5 -18 -2012)
COMMITMENT FOR TITLE INSURANCE
SCHEDULE A
1. Effective Date: April 23, 2012, at 8:00 am Commitment No.: 231389
2. Policy or Policies to be issued:
ALTA Owner's Policy - 2006
Proposed Insured: MEP2, LLC
Amount: $1,156,000.00
ALTA Loan Policy - 2006
Proposed Insured: First Minnetonka City Bank
Amount: $1,900,000.00
3. The estate or Interest in the land described or referred to in the Commitment and
covered herein is fee simple and is at the effective date hereof vested in:
Kraus - Anderson, Incorporated
4. The land referred to in this Commitment is situated in the County /Counties of
Carver, State of Minnesota, and is described as follows:
See Exhibit "A" attached hereto.
Note for Information: Property is Abstract
Chicago Title Insurance Company
(� 4
Authorized Signature
SCHEDULE B - SECTION 1
REQUIREMENTS
The following are the requirements to be complied with:
Instrument creating the estate or interest to be insured must be executed and filed for record,
to -wit:
(a) Deed from the party described at Item 3 of Schedule A to the Proposed Insured
(Owner).
Note: The following must accompany the deed for filing: A Certificate of Real Estate
Value containing the social security number or the federal tax identification number of
each of the grantors and grantees. All grantors and grantees must have obtained a
social security number or a federal tax identification number prior to closing. No deed
can be recorded without a fully completed Certificate of Real Estate Value.
Note: One of the following statements must be made within the deed: (1) The Seller
certifies that the Seller does not know of any wells on the described real property; (2)
A well disclosure certificate accompanies this document; or (3) I am familiar with the
property described in this instrument and I certify that the status and number of wells
on the described real property have not changed since the last previously filed well
disclosure certificate.
(b) Mortgage from MEP2, LLC, to the Proposed Insured (Lender)
2. Pay the full consideration to, or for the account, of the grantors or mortgagors.
3. Pay all taxes, charges, assessments, levied and assessed against subject premises, which are
due and payable.
a. Tell us in writing the name of anyone not referred to in the Commitment who will get an
interest in the land or who will make a loan on the land. We may then make additional
requirements or exceptions.
5. If the transaction is closed by Chicago Title Insurance Company or its agents, the Social
Security Number of Seller or Federal ID Number of Seller entities and forwarding address
must be provided at or prior to closing to comply with the Tax Reform Act of 1986 and the
1099S Form executed at closing unless the Sellers is a corporation or a governmental unit
6. Furnish formation and operational documentation together with good standing certificates
from the state in which the property is located, for all entities conveying each interest to be
insured.
7. Item Nos. 1, 2 and 5 of Schedule B- Section 2 may be deleted from the final policy,
conditioned upon receipt and review of an executed standard form of the Company's affidavit
or affidavits. If the Company is insuring a lender, The Company requires an Indemnity
Agreement from the Borrower, indemnifying the Company against loss due to unfiled
mechanic's liens.
8. Intentionally deleted.
9. Obtain and file of record satisfactions of the following documents;
(a) Combination Real Estate Mortgage, Security Agreement, Fixture Financing Statement
and Assignment of Leases and Rents, by and between Sand Properties, Inc., a
Minnesota corporation, as Mortgagor, to Community Bank Corporation, as Mortgagee,
dated May 2, 2005, recorded November 8, 2005 as Document No. 428555, in the
original principal amount of $4,140,000.00
Modified by Mortgage Modification Agreement, dated December 16, 2005, recorded
October 6, 2006 as Document No. 451282.
10. Obtain and file of record a Second Lien Mortgage from MEP2, LLC, to the Proposed Insured
(Lender), in the amount of $1,525,000.00
SCHEDULE B - SECTION 2
EXCEPTION
The Policy or Policies to be issued will contain exception to the following unless the same
are disposed of to the satisfaction of the Company.
1. Defects, liens, encumbrances, adverse claims or other matters, if any created, first appearing
In the public records or attaching subsequent to the effective date hereof but prior to the date
the proposed Insured acquires for value of record the estate or interest or mortgage thereon
covered by this commitment.
2. Rights or claims of parties in possession not shown by the public records.
3. Intentionally deleted.
4. Intentionally deleted.
5. Any lien, or right to a lien, for services, labor, or material heretofore or hereafter furnished,
imposed by law and not shown by the public records.
6. Taxes or special assessments which are not shown as existing liens by the public records.
7. Real estate taxes for 2013 due and payable in 2013 and thereafter.
8. Real estate taxes for 2012 due and payable in 2012 In the amount of $15,398.00, first half
payable on or before May 15, 2012, second half payable on or before October 15, 2012.
Base Tax: $12,394.18. Non - Homestead
Property Tax Identification No. 25- 2480040.
9. Levied and pending special assessments hereafter levied.
10. Any levied or pending special assessments now of record. Note: An endorsement will follow
with the results of the special assessment search
11. Rights of tenants in possessions under the terms of unrecorded leases
12. Drainage and utility easements as shown on the plat of Crossroads of Chanhassen
13. Intentionally deleted
14. Terms and conditions of Development Contract, dated April 10, 2006, recorded October 6,
2006 as Document No. 451284
15. Terms and conditions of Development Contract, dated May 27, 2008, recorded June 2, 2008
as Document No. 484405
Amended by Amendment "A" to Crossroads of Chanhassen Development Contract, dated July
28, 2008, recorded September 8, 2008 as Document No. 488856
16. Intentionally deleted
17. Right -of -Way Plat, No. 10 -17, recorded October 19, 2004 as Document No. 399301
18. Right -of -Way Plat, No. 10 -18, recorded November 2, 2004 as Document No. 400453
19. The following matters as disclosed by ALTA /ACSM survey prepared by Westwood Professional
Services, Inc., under Project No. 20061214A dated October 26, 2011:
a. The rights of the state and the public in and to the ponds and wetlands located on the
subject property;
b. Storm sewer, power and sanitary sewer cross the easterly portion of the subject
property without benefit of an easement.
20. Terms and conditions of Declaration of Easements, Covenants and Restrictions, dated
September 29, 2008, recorded October 3, 2008 as Document No. 490037
SCHEDULE B - SECTION 3
INFORMATION
1. This Commitment does not cover utility bills against the subject property not shown on tax or
assessment records.
Order No.: 231369
EXHIBIT A
Outlot A, Crossroads of Chanhassen, Carver County, Minnesota.
Abstract Property