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M 4j.�M1 41 NOTICE Section 12413.1 Of the California Insurance Code effective January 1, 1990,requires that any Title Insurance Company,underwritten Title Company,or controlled Escrow Company handling funds in an escrow or sub-escrow capacity,wait a specified number of days after depositing funds,before recording any documents in connection with the transaction or disbursing funds. This statute allows for funds 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,or 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 details. In accordancewith Sections 18662 and 18668 of the Revenue and Taxation Code,a buyer may be required to withhold an amount equal to three and one-third percent of the sales price in the case of the disposition of California real property interest by either: 1.A seller who is an individual with a last known street address outside of California or when the disbursement 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 to be withheld or five hundred dollars($500). N 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: v 1. The sales price of the California real property conveyed does not exceed one hundred thousand dollars($100,000.00),OR 2. The seller executes a written certificate,under the penalty of perjury,certifying that the seller is a resident of California,or if a corporation,has a permanent place of business in California,OR 3.The seller,who is an individual,executes a written certificate,underthe penalty of perjury,that the California real property being conveyed is the seller's principal residence(as defined in Section 1034 of the Internal Revenue Code.) The seller is subject to penalty for knowingly filing a fraudulent certificate for the purpose of avoiding the withholding requirement. The California statutes referenced above include provisions which authorize the Franchise Tax Board to gran/reduced withholding and waivers from withholding on a case-by-case basis. The parties to this transaction should seek an attorney's accountant's,or other tax specialist's opinion concerning the effect of this law on this transaction and should not act on any statements made or omitted by the escrow or closing officer. Form No. 4001(12/91)