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11/17/ZU04 14:5U FAX ]011/015 Ft r NOTICE Section 12413.1 Of the California Insurance Code effective January 1, 1990, requires that any Title Insurance Corrtuany,underwritten Title Company,or controlled Escrow Company handling funds in an escrow or sub�scrow capacity,wait a specified nurnbe;-of days after depositing funds,before recording any documents in connection with the transaction or disbursing funds. This statute allows hordunds deposited by wire transfer to be disbursed the same day as deposit. In the case of cashier's checks or certified checks,funds may be disbursed the next day after deposit. In order to avoid unnecessary delays of three to seven days,ar more,please use wire transfer,cashier's checks,or certified checks whenever possible. If you have any questions about the effect of this new law, please contact your local First American Office for more retails. In accordance with Sections 18662 and 18666 of the Revenue and Taxation Code,it buyer may be required to withhold an amount equal to three and one-third percent of the sales price in the case of die disposition of California real property interest by either: 1.A seller who is an individual with a last known strcct address outside of California or when the disbursemxnt instructions authorize the proceeds be sent to a financial intermediary of the seller, OR 2-A corporate seller which has no permanent place of business in California, The buyer may become subject to penalty for failure to withhold an amount equal to the greater of 10 percent of the amount required �¢1 to be withheld or five hundred dollars($500). 1 However, notwithstanding any other provision included in the California statutes referenced above, no brtyer will be required to withhold any amount or be subject to penalty for failure to withhold if: Fj' 1. The sales price of the California real property conveyed does not exceed one hundred thousand dollars(:3100,000.00),OR 2. The seller executes a written certificate,under the penalty of perjury,certifying that the seller is a resident of California,of if a ( corporation,has a permanent place of business in California,OR I[ 3.'rhe seller, who is an individual,executes a written certificate,under the penalty of perjury,that the Califamia real property baing �" conveyed is the seller's principal residence(as defined in Section 1034 of the Internal Revenue Code.) k The scllct is subject to penalty fur knowingly filing a fraudulent certificate for the purpose of avoiding the withholding requirement, 1 The California statutes referenced above include provisions which authorize the Franchise Tax Board to grant reduced withholding and waivers from withholding on a case-by-case basis. Fit. The parties to this transaction should seek an attorney's accountant's,or other tax specialist's opinion conueming the effect of this law on this transaction and should not act on any statements made or omitted by the escrow or closing officer. fill Form No.4001(12191) 0 F