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Alliancelitle Notice In accordance with Section 18662 of the Revenue&Taxation Code, a buyer may be required to withhold an amount equal to 3 and 1/3 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 or when the disbursement instructions authorize the proceeds to be sent to a financial intermediary of the seller, OR 2) A corporate seller that 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($500.00). 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: 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 corporation with a permanent place of business in California,OR 3) The seller,who is an individual,executes a written certificate,under the penalty of perjury,certifying: a. That the California real property being conveyed is the seller's principal residence(within the meaning of Section 121 of the Internal Revenue Code). b. That the California real property being conveyed is or will be exchanged for property of like kind (within the meaning of Section 1031 of the Internal Revenue Code),but only to the extent of the amount of gain not required to be recognized for California income tax purposes under Section 1031 of the Internal Revenue Code. ` C. That the California real property being conveyed has been compulsorily or involuntarily converted(within the meaning of Section 1033 of the Internal Revenue Code)and that the seller intends to acquire property similar or related in service or use so as to be eligible under Section 1033 of the Internal Revenue Code. d. That the California real property transaction will result in a loss 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. The California statutes referenced above include provisions which authorize the Franchise Tax Board to grant a reduced withholding and waivers from withholding on a case-by-case basis for corporations or other entities. The parties to this transaction should seek the professional advice and counsel of an attorney,accountant or other tax specialist's opinion concerning L the effect of this law on this transaction and should not act on any statements made or omitted by the escrow or closing officer. Please call your Escrow Officer if your answer is ` "Yes" to any of the following questions ♦ At any time during the preceding 6 months,has there been,or is there currently,any work or construction of improvements on the property? Are any of the parties currently vested in title,on the property herein currently Incapacitated or Deceased? - ♦ Are any of the principals of the transaction intending to use a Power of Attorney to execute any of the documentation involved in this transaction? Has there been a recent change of marital status of any of the principals involved in this transaction? ♦ Is the property herein intended to be transferred into a Trust,Partnership,Corporation,or Limited Liability Company? ♦ Do the sellers of the property reside outside the state of California? ♦ Will the property described herein be part of a Tax Deferred Exchange? In order to better serve you We ask that you remember: ♦ All parties signing documents must have a valid Photo Identification Card,Drivers License,or Passport for notarial acknowledgment. ` ♦ Please call your Escrow Officer with any Loan or Lien payoff information, if required, so he or she may order payoff demands in a timely manner,&advise your Escrow Officer of any loan(s)that are to be assumed by the buyer. ♦ If parties are obtaining a loan, your Escrow Officer will need to have the Fire/Hazard Insurance, agent name&phone number to add the new lender on the policy as a loss payee. L, ♦ If there is to be a change of ownership,it will be necessary for the parties acquiring title to indicate how they would like to be vested.Alliance Title Company has a worksheet available that will briefly explain each of the various methods of holding title(please feel free to request a copy from us).Note: Each method by which you can hold title has different legal Wor tax considerations&parties are encouraged to obtain advise from an Attorney,CPA,or other professional knowledgeable in this area. Privacy Policy for Customers _ We will not reveal nonpublic personal customer information to any external non-affiliated organization unless we have been authorized by the customer,or are required by law. v