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OWNER AFFIDAVIT AND INDEMNITY AGREEMENT (NO RECENT IMPROVEMENTS AND NO EXECUTORY CONTRACTS FOR IMPROVEMENTS) 1. This Owner Affidavit and Indemnity Agreement(the"Agreement")form is for use with any title insurer(the "Company") regarding owner and lender coverage for transactions affecting title to particular real estate in North Carolina (the"Property"), a description of which must be included in this Agreement,where there have been no Improvements made to the Property within the 120-Day Lien Period(as defined). 2. The closing attorney must notify underwriting counsel for the Company prior to closing regarding any filed Claim of Lien on Real Property or Notice of Claim of Lien upon Funds,or any Notice of Claim of Lien upon Funds known by the attorney or Owner to have been delivered to the Owner, whether on the Property or on any property in the state of North Carolina, as this may affect the Company's decisions about whether to insure and on what basis. At the very least,any fled Claim of Lien on Real Property must be paid in full and canceled of record. Any delivered or tiled Notice of Claim of Lien upon Funds (by a subcontractor) must be paid in full and a waiver obtained from the subcontractor. The attorney must discuss any questions or issues regarding these with underwriting counsel for the Company prior to closing. 3. This form is appropriate for use in transactions wherein no recent Improvements have been made on the Property. If Labor,Services or Materials(including surveying, architectural, engineering services or rental equipment)for Improvements to the Property have been provided within the 120-Day Lien Period(as defined in the Agreement)(other than minor repairs to existing Improvements completed by Owner without the assistance of a Contractor or supplier,or with evidence of payment at or before closing of completed work),then either the • NCLTA Form#2: OWNER/CONTRACTOR AFFIDAVIT, WAIVER OF LIENS AND INDEMNITY AGREEMENT (FOR CONSTRUCTION RECENTLY COMPLETED)or • NCLTA Form#3: OWNER/CONTRACTOR AFFIDAVIT, INDEMNITY AND LIEN SUBORDINATION AGREEMENT (FOR CONSTRUCTION IN PROCESS OR IMMEDIATELY CONTEMPLATED WITH CONSTRUCTION LOAN)should be used.or • NCLTA Form#5(Owner)in conjunction with NCLTA Forms 6 and 7(Potential Lien Claimants),as applicable,should be used. Note, however, that in the situation in which vacant unimproved Property is to be conveyed and the purchaser has already retained Contractors,the seller may execute this form, and the purchaser would provide NCLTA Form#3 or NCLTA Form#5,as applicable as noted above,with regard to any potential combined purchase and construction loan. 4. NOTE: There may be transactions where no Improvements have been made within the 120-Day Lien Period but work under an executory contract with the Owner continues after closing. An"executory contract"is one under which certain obligations remain to be performed in the future. Such post-closing Improvements may give rise to lien rights in the Property. An example is a lot purchase transaction involving the developer in a subdivision where development or infrastructure work has temporarily stopped but could or would be restarted after the date of this affidavit. In this scenario the NCLTA Form#2 or NCLTA Form#3 should be used. 5. Any variances in execution of this form or in parties signing must be approved by underwriting counsel for the Company prior to closing. Page 23 of 27 Attachment number 1 \n G-4 Page 154