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NOTICE <br /> Section 12413.1 Of the California Insurance Code effective January 1, 1990, requires that any Title Insurance Company, <br /> underwritten'Title Company, or controlled Escrow Company handling funds in an escrow or sub-escrow capacity, wait a <br /> specified number of days after depositing funds,before recording any documents in connection with the transaction or disbursing <br /> funds. This rstatute allows for funds deposited by wire transfer to be disbursed the same day as deposit. In the case of cashier's <br /> checks or ceivfied checks, funds may be disbursed the next day after deposit:' in order to avoid unnecessary delays of three <br /> to seven days, or more, please use wire transfer, cashier's checks, or certified checks whenever possible. <br /> If you have any questions about the effect of this new law, please contact your local First American Office for more details. <br /> in accordance with Sections 18662 and 18668 of the Revenue and Taxation Code, a may ay be required to withhold an <br /> amount equal to three and one-third percent of the sales price in the case of the disposition of California real property interest <br /> by either: <br /> 1. !A seller who is an individual with a last known street address outside of California or when the disbursement <br /> instructions authbrize the proceeds be sent to a financial intermediary of the seller, OR <br /> 2. A corporate seller which has no permanent place of business in California. <br /> The buyer may become subject to penalty for failure to withhold an amount equal to the greater of 10 percent of the <br /> amount required to be withheld or five hundred dollars ($500). <br /> However,notwithstanding any other provision included in the California statutes referenced above, no buyer will be <br /> required to withhold any amount or be subject to penalty for failure io withhold if: <br /> 1. The sales price of the California real property conveyed does not exceed one hundred thousand dollars <br /> ($100,000.00), OR <br /> 2. The seller executes a written certificate, under the penalty ofperjury, certifying that the seller is a resident of <br /> t California, or if a corporation,has a permanent place of business in;Califorrua, OR <br /> 3.The seller,who is an individual`executes a written certificate, under the penalty of perjury,that the California real <br /> property being conveyed is the seller's principal residence(as defined in Section 1034 of the Internal Revenue Code.) <br /> The seller is subject to penalty for knowingly filing a fraudulent certificate for the purpose of avoiding the withholding <br /> requirement. , <br /> The California statutes referenced above include provisions which authorize the Franchise Tax Board to grant reduced <br /> { withholding and waivers from withholding on a case-by-case basis. <br /> The parties to this transaction should seek an attorney's accountant's;or other tax specialist's opinion concerning the <br /> effect of this law on this transaction and should not act on any state menta made or omitted by the escrow or closing <br /> officer. <br /> ii <br />