STATE OF FLORIDA 4 D DEPARTMENT OF BUSINESS & PROFESSIONAL REGULATHON,, FLORIDA REAL ESTATE APPRAISAL BOARD MW Mt: FLORIDA DEPARTMENT OF BUSINESS & 40% je is o * ag PROFESSIONAL REGULATION, DIVISION OF REAL ESTATE, \0- 2345 py OH Petitioner, v. CASE NO. 2009009409" JAIME TOMAS VARGAS, Respondent. / ADMINISTRATIVE COMPLAINT The Florida Department of Business & Professional Regulation, Division of Real Estate ("Petitioner") files this Administrative Complaint against Jaime Tomas Vargas (“Respondent”), and alleges: ESSENTIAL ALLEGATIONS OF MATERIAL FACT 1. Petitioner is a state government licensing and regulatory agency charged with the responsibility and duty to prosecute Administrative Complaints pursuant to the laws of the State of Florida, including Section 20.165 and Chapters 120, 455 and 475 of the Florida Statutes, and the rules promulgated thereunder. 2. Respondent is currently a Florida state certified residential real estate appraiser having been issued license 6560 in accordance with Chapter 475 Part II of the Florida Statutes. 3. The last license the State issued to Respondent was as a state certified residential real estate appraiser at 15023 sw 139™ H:\FREAB\vargas jaimeAC.doc 1 FDBPR v. Jaime Tomas Vargas Case No. 2009009409 Administrative Complaint Place, Miami, Florida 33186. 4. On or about November 16, 2007, Respondent and trainee, Geovanni Tellez (Tellez) developed and communicated an appraisal report (Report) on a property commonly known as 5085 NW 7th Street, Miami, Florida 33126 (Subject Property). A copy of the Report is attached hereto and incorporated herein as Administrative Complaint Exhibit 1. 5. Petitioner received a complaint from a lender alleging certain errors in the Report regarding, among other issues, use of Comparable Sales that did not appear to be arms’ length transactions. 6. Respondent made the following errors or omissions in the Report: A) Respondent inadequately disclosed in the Report a listing history for the Subject Property of an active listing at $400,000 from January 2007 to September 2007; B) Respondent’s work file contained an MLS printout (a copy of which is attached hereto and incorporated herein as Administrative Complaint Exhibit 2)showing a decline in listing price from the original listing at $400,000 on January 26, 2007 to cancellation on April 26, 2007 at $360,000, followed by another active listing at $400,000 on July 24, 2007; H:\FREAB\vargas.jaimeAC.doc 2 FDBPR v. Jaime Tomas Vargas Case No. 2009009409 Administrative Complaint C) Respondent provided no analysis of the unsold listing at $360,000 jumping to a $400,000; D) Respondent indicated the marketing time was 3-6 months, yet the Subject Property had been on the market for 10 months; E) Respondent erred in utilizing Comparable Sale 1 in the Sales Comparison Approach to determine valuation of the subject. Property, when Comparable Sale 1 had been listed at $325,000, and rose to $429,900, before selling in September 2007 for $455,000 in a transaction suggestive of fraud. A copy of the MLS listing for Comparable Sale 1 obtained from Vargas’ work file is attached hereto and incorporated herein as Administrative Complaint Exhibit 3; F) Respondent erred in utilizing Comparable Sale 2 in the Sales Comparison Approach to determine valuation of the Subject Property, when in February 2007, Comparable Sale 2 had been listed at $380,000, subsequently cancelled at $450,000, and sold at $450,000 in a transaction suggestive of fraud. A copy of the MLS listing history for Comparable Sale 2 is attached hereto and incorporated herein as Administrative Complaint Exhibit 4; and G) Respondent erred in failing to analyze the sales history of the Subject Property, which sold in December 2005 for $295,000 and had increased significantly in value in just under 2 years. H:\FREAB\vargas.jaimeAC.doc 3 FDBPR v. Jaime Tomas Vargas Case No. 2009009409 Administrative Complaint 7. Vargas’ work file contained an appraisal order form estimating the value of the Subject Property at $450,000, which was the exact value found by Respondent. 8. Respondent falsely certified to the intended user of the Report that he had performed the appraisal in accordance with the requirements of the Uniform Standards of Professional Appraisal Practice (USPAP) that were in place at the time the appraisal report was prepared. 9. Respondent failed to exercise reasonable diligence in performing the appraisal assignment in accordance with the USPAP Standards in place at the time the appraisal report was prepared. 10. Respondent filed a written response to the complaint, a copy of which is attached hereto and incorporated herein as Administrative Complaint Exhibit 5. COUNT ONE Based upon the foregoing, Respondent is guilty of having failed to exercise reasonable diligence in developing an appraisal report in violation of Section 475.624(15), Florida Statutes. COUNT TWO Based upon the foregoing, Respondent has violated a standard for the development or communication of a real estate appraisal, specifically the Conduct Section of the Ethics Rule, or other HAFREAB\vargas.jaimeAC.doc 4 FDBPR v. Jaime Tomas Vargas Case No. 2009009409 Administrative Complaint provision of the Uniform Standards of Professional Appraisal Practice (2006) in violation of Section 475.624(14), Florida Statutes. COUNT THREE Based upon the foregoing, Respondent has violated a standard for the development or communication of a real estate appraisal, specifically Standards Rule 1-1(a), (b), and (c), or other provision of the Uniform Standards of Professional Appraisal Practice (2005) in violation of Section 475.624(14), Florida Statutes. COUNT FOUR Based upon the foregoing, Respondent has violated a standard for the development or communication of a real estate appraisal, specifically Standards Rule 1-4(a), or other provision of the Uniform Standards of Professional Appraisal Practice (2006) in violation of Section 475.624(14), Florida Statutes. COUNT FIVE ' Based upon the foregoing, Respondent has violated a standard for the development or communication of a real estate appraisal, specifically Standards Rule 1-5(a) and (b), or other provision of the Uniform Standards of Professional Appraisal Practice (2006) in violation of Section 475.624(14), Florida Statutes. HAFREAB\vargas.jaimeAC.doc 5 FDBPR v. Jaime Tomas Vargas Case No. 2009009409 Administrative Complaint COUNT SIX Based upon the foregoing, Respondent has violated a standard for the development or communication of a real estate appraisal, specifically Standards Rule 2-1(a) and (b), or other provision of the Uniform Standards of Professional Appraisal Practice (2006) in violation of Section 475.624(14), Florida Statutes. COUNT SEVEN Based upon the foregoing, Respondent is guilty of accepting an appraisal assignment when the employment itself is contingent upon the appraiser reporting a predetermined result, analysis, or opinion in violation of Section 475.624(17), Florida Statutes. WHEREFORE, Petitioner respectfully requests the Florida Real Estate Appraisal Board, or the Department of Business and Professional Regulation, as may be appropriate, to issue a Final Order as final agency action finding the Respondent(s) guilty as charged. The penalties which may be imposed for violation(s) of Chapter 475 of the Florida Statutes, depending upon the severity of the offense(s), include: revocation of the license, registration, or certificate; suspension of the license, registration or certificate for a period not to exceed ten (10) years; imposition of an administrative fine of up to $5,000 for each count or offense; imposition of investigative costs; issuance of a H:FREAB \vargas.jaimeAC.doc 6 FDBPR v. Jaime Tomas Vargas Case No. 2009009409 Administrative Complaint reprimand; imposition of probation subjéct to terms including, but not limited to, requiring the licensee, registrant, or certificate holder to complete and pass additional appraisal education courses; publication, or any combination of the foregoing which may apply. See Section 475.624, Florida Statutes and Rule 61J1-8.002, Florida Administrative Code. The penalties which may be imposed for violation(s) of Chapter 455 of the Florida Statutes, depending upon the severity of the offense(s), include: revocation of the license, registration, or certificate; suspension of the license, registration, or certificate for a period not to exceed ten (10) years; imposition of an administrative fine of up to $5,000 for each count or offense; imposition of investigative costs; issuance of a reprimand; imposition of probation subject to terms including, but not limited to, requiring the licensee, registrant, or certificate holder to complete and pass additional appraisal education courses; publication; restriction of practice; injunctive or mandamus relief; imposition of a cease and desist notice; or any combination of the foregoing which may apply. See Section 455.227, Fla. Statutes and Florida Administrative Code Rule 61J1-8.002. H:\FREAB\wargas.jaimeAC.doc 7 ogee: oc pemmedanigtin mansiaipiviaya tr as dere se etaiape nc aera FDBPR v. Jaime Tomas Vargas Case No. 2009009409 Administrative Complaint = SIGNED this ™ day of Vnwumy , 2010. CHARLIE LIEM, Interim Secretary Department of Business and Professional Regulation ert By: Donna Christine Lindamood Assistant General Counsel Fla. Bar No. 273694 Department of Business and Professional Regulation Division of Real Estate Legal Section 400 W. Robinson Street, N801 Orlando, Florida 32801-1757 (407) 481-5632 - Telephone (407) 317-7260 - Facsimile PCP Date: 1/6/10 PCP MEMBERS: JH/JS H:\FREAB\wargas.jaimeAC.doc 8 FDBPR v. Jaime Tomas Vargas Case No. 2009009409 Administrative Complaint NOTICE TO RESPONDENTS PLEASE BE ADVISED that mediation under Section 120.573 of the Florida Statutes, is not available for administrative disputes involving this type of agency action. PLEASE BE FURTHER ADVISED that pursuant to this Administrative Complaint you may request, within the time allowed by law, a hearing to be conducted in this matter in accordance with Sections 120.569 and 120.57 of the Florida Statutes; that you have the right, at your option and expense, to be represented by counsel or other qualified representative in this matter; and that you have the right, at your option and expense, to take testimony, to call and cross-examine witnesses, and to have subpoena and subpoena duces tecum issued on your behalf if a formal hearing is requested. PLEASE BE FURTHER ADVISED that if you do not file an Election of Rights form or some other responsive pleading with the Petitioner within twenty-one (21) days of receipt of this Administrative Complaint, the Petitioner will file with the Florida Real Estate Appraisal Board a motion requesting an informal hearing and entry of an appropriate Final Order which may result in the suspension or revocation of your real estate license or registration. Please see the enclosed Explanation of Rights and Election of Rights form. H:\FREAB\vargas.jaimeAC.doc : 9 ri INVOICE Jaime T. Vargas Dedicated Appraisers, Inc. 15023 SW 138th Place D11070456T Miami, FL 33186 www.dedicatedappraisers.com 14/16/2007 Telephone Number: 305-969-3565 Fax Number: 305-777-3087 TO: intemal Order 4: 01107045GT Liz Navarro Lender Case #: City One Mortgage Bankers Cent Fhe # 7500 NW 25th Strect iain Fie #onfom: prro704seT Suite 200 Miami, FL 33122 Other File # on form: Telephone Number: (305) 406-2323 Fax Number: (305) 423-1698 Federal Tax ID: 20-8877210 Alternate Number: E-Hail inavarro@cityonemartgage.com Employer ID: Lender: City One Mortgage Bankers Client: City One Mortgage Bankers Purchaser/Borrower: ALBA L. QUINTERO Property Address: 5085 NW 7TH STREET, #815 City: MIAMI County: MIAMI DADE State: FL Zip: 33126 J Legat Description: BLUE LAGOON CONDO UNIT 815 BLDG 3 UNDIV 0.1862% INT IN COMMON ELEMENTS Valuation Services i 275.00 SUBTOTAL 775.00 Check #: Date: Description: PAID IN FULL 275.00 Cheek #: Date: Description: i Check #: Date: Description: : SUBTOTAL | 778.00 a ___TOTALDUE [8 ivi ALN TE. exuigit #_| —-__-_—— { GF f Farm NIV5 — "WinTOTAL* appraisal software by a la mode, inc. — 1-s0l AMEE Dedicated Appraisers, Inc. < } File No. 0110704567] Page #1] APPRAISAL OF REAL PROPERTY LOCATED AT: 5085 NW 7TH STREET, #815 MIAMI, FL 33126 AS OF: 1116/2007 BY: Geovanni Tellez ADMINISTRATIVE COMPLAINT EXHIBIT # Form GA1 ~ “WinTOTAL* appraisal software by a la mode, inc. — 1 -RDO/ALAMODE Or --- . “ a Borrower/Client__ ALBA L. QUINTERO. File No._D1107045GT. Property Address_5085 NW 7TH STREET. 5 Ci MIAMI State_FL Zip Gode_ 33126 Lender City One Mortgage Bankers TABLE OF CONTENTS Photograph Addendum Comparable Photos 1-3 Comparable Photos 4-6 Building Sketch (Page - 1) ADMINISTRATIVE COMPLAINT é Form TOCNP — "WinTOTAL” appraisal software by a la mode, inc. — 4-800-ALAMODE Dedicated Appraisers, inc. 2 No.0 Individual Condominium Unit Appraisal Report File # 01107045GT Unit # 815 City MIAME Borrower_ALBA L. QUINTERO. Owner of Public Record ALBA L. QUINTERO Lega! Description BLUE LAGOON CONDO UNIT 815 BLDG 3 UNDIV 0.1862% INT IN COMMON ELEMENTS Assessor's Parcel #_01-3131-032-3660 Tax Year_2006, Map Reference 53-41-34 Special Assessments $_ NONE KNOWN Other (describe) Lendea/Clent City One Mortgage e Bankers _ Address 7500 NW 25th Street, Suite 200, Miami, FL 33122 enti offered for sale or has it been offered for sale in the twelve months prior to the effective date of this appraisal? qi Odie 2 ad not analyze the contract for sate far the subject purchase transaction. Explain the results of the analysis of the contract for sale or why the analysis was not performed. N/A Soe ee 5 e% _f Rapid [x] Stable | ad were re UNFAVORABLE E FacrORS Roe AT THE TIME OF INSPECTION TAT WOULD ADVERSELY AFFECT MARKETABILITY. m MARKET. ‘VALUE. Market Conditions (including support for the above conclusions) FINANCING |S READILY AVAILABLE FROM A VARIETY OF SOURCES AT COMPETITIVE RATES. SOME SELLER FINANCING WAS ALSO NOTED. PROPERTY VALUES APPEAR TO SE DECLINING ATTRIBUTED TO AN OVER SUPPLIED MARKET. THE I MARKETING TIME FOR SIMILAR PROPERTIES IN THE SUBJECTS MARKET AREA APPEARS TO BE FROM THREE TO SIX MONTHS. Topography STREET GRADE LEVEL. Size_ TYPICAL FOR THE AREA Density AVERAGE/TYPICAL View LAKE [Topography STREET GRADE LEVEL Sie TYPICALFORTHEAREA Density AVERAGE/TYPICAL Mew LAKE Specific Zoning Gassiication Be Zoning Description MULTI-FAMILY HIGH DENSITY RESIDENTIAL. Zari ik Public Other (describe) Off-site Improvements = Type MUNICIPAL Steet PAVED ASPHALT MUNICIPAL Are there any adverse site conditions or extemal factors (easements, “eeroacirnens, environmental conditions, land uses, etc.)? [J] Yes Ox} No_ lf Yes, describe THE SUBJECT SITE APPEARS TYPICAL AND CONFORMING. NO APPARENT ADVERSE EASEMENTS OR ENCROACHMENTS OBSERVED. A SURVEY WAS NOT PROVIDED, PRESENT LAND USE |S PERMISSIBLE UNDER CURRENT ZONING CLASSIFICATION. EEE SL Sr [ fort [#ofPlanned Units Ia | [# of Units For Sale To0«/- [# of Units for Sale [i of Unis Soid fs [i of Units Seid le11_|#ofUnits Sold NVA [oss fs ele —__fua_J ee gpa yea Big aba. [¥en Uns fot #0 Ow Oop Uo [a wer Sec a FA at ea ee AM To Els tte developerbulder in control of the Homeowners’ Association waa? (] yes _ [x] No Fi Management Group -_ [X] Homeowners’ Association [| Devel A Tl Does any single entity (the same individual, investor group, corporation, etc.) own more than 10% of the total units in the project? JECT INFORM Freddie Mac Form 465 March 2005 Individual Condominium Unit Appraisal Report Fle # 0110704567 Describe the condition of the project and quality of construction. THE PROJECT IS IN AVERAGE CONDITION OVERALL. NO REPAIRS WERE NECESSARY AT THE. TIME OF INSPECTION. THE PROJECT 1S OF AVERAGE QUALITY CONSTRUCTION, UNIT MIX, AND AVERAGE MARKET APPEAL. Describe the common siements and recreational facilities. COMMUNITY POOL, CLUBHOUSE, GYM, COMMON AREAS. Are any common elements leased to or by the Homeowners’ Association? Yes No If Yes, describe the rental tems and options. Is the project subject to a ground rent? (Lyes_[X]No__ if Yes, $ per year (describe terms and conditions| Are the parking facilities adequate for the project size and type? Yes No_If No, describe and comment on the effect on value and marketability, | CO did did not analyze the condominium project budget for the current year. Explain the results of the analysis of the budget {adequacy of fees, reserves, etc), ar why the analysis was not performed. THE APPRAISER WAS NOT PROVIDED WITH THE CONDOMINIUM BUDGET. ‘Are there any other fees (ather than regular HOA charges) for the use of the project facilities? [_] Yes XJ No__If Yes, report the charges and describe, Compared to ather competitive projects of similar quality and design, the subject unit charge appears High Average [7 Low_ If High or Low, describe Are there any special or unusual characteristics of the project (based on the condominium documents, HOA meetings, or other information) known to the appraiser? Yes No__ if Yes, describe and explain the effect on value and marketability. Unit Charge $_ 388.00 jet Month X 12 =$§ 4,656.90 year Annual assessment charge per year per square feet of gross living area = $4.79 Utilities included in the unit monthly assessment [_] None [| Heat [_] Air Conditioning [} Electricity [| Gas Water [x] Sewer [] Cable [| Other (describe) Foor# 8 Floors MARBLE/CARPETAVG _|[_] Freplace(s) # Refrigerator None # of Levels_+ Watls DRYWALLIAVG WoodStave(s} # Range/Oven Ga Covered jen Heating Type FWA Fuel ELECiTrinVAinish _WOOD/AVG Deck/Patio Dis Microwave __|# of Cars 4 DX] Central AC [_] Individual AC (Bath Wainscot TILE/AVG IX] PorctyBaleony Dishwasher Assigned Owned Other (describe! Doors WOOD/AVG Other Washer; Parking Space # E43 Finished area above grade contains: 4 Rooms 2_ Bedrooms 2_ Baths) 972 Square Feet of Gross Living Area Above Grade ‘Are the heating and cooking for the individual units separately metered? 5x) Yes [7] No If No, describe and comment on compatipity to other projects in the market area. Additional features (special efficient items, etc.) _ STANDARD FEATURES. Describe the condition of the proy (including needed repairs, deterioration, renovations, remodeling, ¢tc.).__ THE UNIT IS IN AVERAGE CONDITION, HAVING BEEN ADEQUATELY MAINTAINED, AND NO_NEEDED REPAIRS WERE OBSERVED BY THE APPRAISER AT THE TIME OF INSPECTION. THE SUBJECT iS OF AVERAGE QUALITY CONSTRUCTION. Are there ical deficiencies or adverse conditions that affect the livability, soundness, or structural integrity of the property? (_] Yes (<] No_Tf Yes, describe Does the proy jenerally conform to the neighborhood (functional utility, style, condition, use, construction, etc.)? Yes {| No_if No, describe Il did did not research the sale or transfer history of the subj jerty and comparable sales. tt fain research [X] did [_] did not reveal any prior sales or transfers of the subject for the three years prior to the effective date of this appraisal. Data source(s)_ FARES/MLX/MIAMIDADE. GOV research did did not reveal any prior sales of transfers of the comparable sales for the year prior to the date of sale of the c le sale. Fs Data source(s) FARES/MLX/MIAMIDADE.GOV. Report the results of the research and analysis of the prior sale or transter history of the Subject property and comparable sales (report additional prior sales on page 3). TEM I SUBJECT COMPARABLE SALE #1 COMPARABLE SALE #2 COMPARABLE SALE #3 Date of Prior Sale/Transfer 12/2005 NO PRIOR SALES HISTORY _|NO PRIOR SALES HISTORY _|NO PRIOR SALES HISTORY. m4 Price of Prior Saie/Transfer $295,000 WITHIN 1 YEAR. WITHIN 1 YEAR WITHIN 1 YEAR faq Data Source(s) FARES/MLX/COUNTY RECORDS | FARES/MLX/COUNTY RECORDS. | FARES/MLX/COUNTY RECORDS _| FARES/MLX/COUNTY RECORDS Fe Effective Date af Data Source(s) [11/48/2007 [11/16/2007 Tr116/2007 Luer2007 Analysis of prior sale or transter history of the subject property and comparable sales.__—THE SUBJECT PROPERTY WAS PURCHASED ON 12/2005 FOR $295,000 LOPER SALE}. ALL THREE COMPARABLES HAVE NOT BEEN TRANSFERRED OR SOLD WITHIN ONE YEAR OF THIS APPRAISAL. NOTE: DEVELOPER SALES DO NOT REFLECT FAIR MARKET VALUE NOR NEGATIVELY AFFECT THE MARKETABILITY OF THE SUBJECT WITHIN THIS MARKET AREA. Freddie Mac Form 465 March 2005 Page 2 of 6 Tes 7 et Form 1073 — "WinTOTAL" appraisal software by a la mode, inc. — 1-B00-ALAMODE * 7 2 en __. ; Peed 2 OF << Individual Condominium Unit Appraisal Report File # 01107045GT There are 10+/- comparable properties currently offered for sale in the subject neighborhood ranging in price from $ 450,000 to$ 480,000 There are__20+/-_comparable sales in the subject neighborhood within the past twelve months ranging in sale price from $ 430.000 to $_ 455.000 FEATURE SUBJECT COMPARABLE SALE # 1 COMPARABLE SALE # 2 COMPARABLE SALE # 3 Address and 5085 NW 7TH STREET 5085 NW 7TH STREET 5085 NW 7TH STREET 5085 NW 7TH STREET Unit # B15 615 1108 714 Project Name and BLUE LAGOON CONDO BLUE LAGOON CONDO BLUE LAGOON CONDO BLUE LAGOON CONDO Phase 4 1 1 14 Proximity to Subj Less than .01 mile NW Less than’.01 mile NW Less than .01 mije NW Sale Price $___REFINANCE! $ 455,000 $ 450.000) $ 450,000 Sale Price/Gross Liv. Area__[$ Ny/asg. f.|$ __ 468.11:sq. ft $__ 487.5450, fe oe $__ 487.5480, ft Data Source(s FARES/MUYCOUNTY RECORDS _|FARES/MLX/COUNTY RECORDS _|FARES/MLX/COUNTY RECORDS Verification Source(s) EXTERIOR INSPECTION EXTERIOR INSPECTION EXTERIOR INSPECTION VALUE ADJUSTMENTS: DESCRIPTION DESCRIPTION | +(-)$ Adjustment | DESCRIPTION | +(-) $ Adjustment | DESCRIPTION | +(-) $ Adj Sales or Financing CONVENTIONAL CONVENTIONAL CONVENTIONAL Concessions NONE KNOWN NONE KNOWN NONE KNOWN Date of Sale/Time 09/2007-CLOSED 08/2007-CLOSED! 08/2007-CLOSED} Location AVERAGE AVERAGE AVERAGE AVERAGE. Le e@ Simple FEE SIMPLE _|FEE SIMPLE FEE SIMPLE. FEE SIMPLE HOA Mo. Assessment $388.00 $388.00 $388.00 $388.00 Common Elements COMMON AREAS |COMMON AREAS COMMON AREAS COMMON AREAS and Rec, Facilities POOUCLUBH _|POOL/CLUBH POOL/CLUBH POOL/CLUBH Floor Location 8TH FLOOR 6TH FLOOR NO ADJ 11TH FLOOR NO ADJI7TH FLOOR NO ADJ View LAKE LAKE LAKE LAKE Fd Desi HIGH-RISE HIGH-RISE HIGH-RISE HIGH-RISE. F4 Quaiity of Construction AVERAGE [AVERAGE AVERAGE [AVERAGE 24 Actual Age 4 YEARS 4 YEARS. 4 YEARS. 4 YEARS. Condition AVERAGE AVERAGE AVERAGE AVERAGE _| rl Above Grade Total [pdrs.] Baths | Total [Bdrms.| Baths Total [Bdrms.| paths Total [Barms.| Baths Fa Room Count 4); 2})2/)/412)2 4)252 4/2 12 F=4 Gross Living Area _- 972 sq. ft. 972 sq. ft 923 5Q, fi. NO ADJ! 923 34. ft. NO ADJ sf Basement & Finished NONE NONE NONE NONE Rooms Below Grade NONE NONE NONE NONE Functional Uti AVERAGE AVERAGE. AVERAGE. AVERAGE Heating/Cooling CENTRAL CENTRAL CENTRAL CENTRAL Energy Efficient tems STANDARD. STANDARD. STANDARD STANDARD Garage/Car COV, PARKING | COV. PARKING COV. PARKING COV. PARKING PorchyPatityDack BALCONY. BALCONY. BALCONY. BALCONY. Net Adjustment (Tatal} + (j- |s ti+ Cl. |$ + -_|s Adjusted Sale Price ee Net Adj. % Net Adj. % Net Adj. % of Comparables Gross Adj. HIS 455,000! Gross Adj. %1S 450,000] Gross Adj. |S 450,000 Summary of Sales Comparison Approach ALL SALES ARE CONSIDERED TO BE STRONG MARKET VALUE SUPPORTERS FOR THE SUBJECT PROPERTY. ALSO, ALL SALES ARE LOCATED WITHIN THE SUBJECTS DEVELOPMENT. NOTE: NORMALLY THE APPRAISER WOULD PROVIDE 2 SALES FROM INSIDE THE SUBJECT PROJECT AND 1 SALE FROM AN OUTSIDE COMPETING PROPERTY. IN THIS CASE, HOW SINCE BLUE LAGOON CONDO CONTAINS 614 UNITS IN 4 BUILDINGS, IT BECOMES A MARKET UNTO ITSELF OBVIATING THE NECESSITY FOR THE INCLUSION OF AN OUTSIDE COMPARABLE SALE. Indicated Value by Sales Comparison Approach $ 450,000 Estmated Monthly Market Rent $ N/A, X Gross Rent Multiplier N/A = = N/A. indicated Value by Income Approach fq Summary of income Approach (including support for market rent and GRM) NOT DEVELOPED Indicated Value by: Sales Comparison Approach$ 450,000 Income Approach (ifdeveloped)$ NOT DEV. MOST WEIGHT HAS BEEN PLACED ON THE SALES COMPARISON APPROACH AS IT'S THE MOST WIDELY USED AND ACCEPTED METHOD BETWEEN. BUYERS/SELLERS IN THE SUBJECTS MARKETPLACE. WHEN ARRIVING AT THE FINAL ESTIMATE OPINION OF VALUE MOST WEIGHT WAS PLACED ON ALL CLOSED SALES. 5 s rq This appraisal is made [x] “as is”, ‘subject to completion per plans and specifications on the basis of a hypothetical condition that the improvements have been completed, [[] subject to the following repairs or alterations on the basis af a hypothetical condition that the repairs or alterations have been completed, or (—} subject to the followi red inspection based on the extraordinary assumption that the condition or deficiency does not require alteration or repair: Based on a complete visual inspection of the interior and exterior areas of the subject property, defined scope of work, statement of assumptions and limiting Conditions, and appraiser's certtfication, my (our) opinion of the market value, as defined, of the real property that is the subject of this report is $450,000 as of 14/16/2007 which is the date of inspection and the effective date of this i Freddie Mac Form 465 March 2005 Page 3 of 6 Fannie Mae Form 1073 Mi RT bebe Form 1073 — "WinTOTAL" appraisal software by a la mode, inc. — 1-800-ALAMODE _ — al Individual Condominium Unit Appraisal Report Fle # D1107045GT This report form is designed to report an appraisal of a unit in a condominium project or a condominium unit in a planned unit development (PUD). This report form is not designed to report an appraisal of a manufactured home or a unit in a cooperative project. This appraisal report is subject to the following scope of work, intended use, intended user, definition of market vaiue, statement of assumptions and limiting conditions, and certifications. Modifications, additions, or deletions to the intended use, intended user, definition of market value, or assumptions and limiting conditions are not permitted. The appraiser may expand the scope of work to include any additional research or analysis necessary based on the complexity of this appraisal assignment. Modifications or deletions to the certifications are aiso not permitted. However, additional certifications that do not constitute material alterations to this appraisal report, such as those required by law or those related to the appraiser's continuing education cr membership in an appraisal organization, are permitted. SCOPE OF WORK: The scope of work for this appraisal is defined by the complexity of this appraisal assignment and the reporting requirements of this appraisal report form, inciuding the following definition of market value, statement of assumptions and limiting conditions, and certifications. The appraiser must, at a minimum: (1) perform a complete visual inspection of the interior and exterior areas of the subject unit, (2) inspect and analyze the condominium project, (3) inspect the neighborhood, (4) inspect each of the comparable sales from at least the street, (5) research, verify, and analyze data from rellable public and/or private sources, and (6) report his or her analysis, opinions, and conclusions in this appraisal repo INTENDED USE: The intended use of this appraisal report is for the jender/client to evaluate the property that is the subject of this appraisal for a mortgage finance transaction. INTENDED USER: The intended user of this appraisal report is the lender/client. MARKET VALUE: The most probable price which a property should bring in a competitive and open market under all conditions requisite to a fair sale, the buyer and seller, each acting prudently, knowledgeably and assuming the price is not affected by undue stimulus. Implicit in this definition is the consummation of a sale as of a specified date and the passing of title from seller to buyer under conditions whereby: (1) buyer and seller are typically motivated; (2) both parties are welt informed or well advised, and each acting in what he or she considers his or her own best interest; (3) a reasonable time is allowed for exposure in the open market; (4) payment is made in terms of cash in U. S. dollars or in terms of. financial arrangements comparable thereto; and (5) the price represents the normal consideration for the property sold unaffected by special or creative financing or sates concessions* granted by anyone associated with the sale. *Adjustments to the comparables must be made for special or creative financing or sales concessions. No adjustments are necessary for thase costs which are normally paid by sellers as a resutt of tradition or !aw in a market area; these costs are readily jdentifiable since the seller pays these costs in virtually all sales transactions. Special or creative financing adjustments can be made to the comparabie property by comparisons to financing terms offered by a third party institutional lender that is not already involved in the property or transaction. Any adjustment should nat be calculated on a mechanical dollar for dollar cost of the financing or concession but the dollar amount of any adjustment should approximate the market's reaction to the financing cr concessions based on the appraiser's judgment. STATEMENT OF ASSUMPTIONS AND LIMITING CONDITIONS: The appraiser's certification in this report is subject to the following assumptions and limiting conditions: 1. The appraiser will not be responsible for matters of a legal nature that affect either the property being appraised or the title to it, except for information that he or she became aware of during the research involved in performing this appraisal. The appraiser assumes that the title is good and marketable and will not render any opinions about the title. 2. The appraiser has provided a sketch In this appraisal report to show the approximate dimensions of the improvements. The sketch is included only to assist the reader in visualizing the property and understanding the appraiser's determination of its size. 3. The appraiser has examined the available flood maps that are provided by the Federal Emergency Management Agency (or other data sources) and has noted in this appraisal report whether any portion of the subject site is located in an identified Special Flood Hazard Area. Because the appraiser is not a surveyor, he or she makes no guarantees, express or implied, regarding this determination. . 4, The appraiser will not give testimony or appear in court because he or she made an appraisal of the property in question, unless specific arrangements to do so have been made beforehand, or as otherwise required by law. 5. The appraiser has noted in this appraisal report any adverse conditions (such as needed repairs, deterioration, the presence of hazardous wastes, toxic substances, etc.) observed during the inspection of the subject property or that he or she became aware of during the research involved in performing this appraisal. Unless otherwise stated in this appraisal report, the appraiser has no knowledge of any hidden or unapparent physical deficiencies or adverse conditions of the property (such as, but not limited to, needed repairs, deterioration, the presence of hazardous wastes, toxic substances, adverse environmental conditions, etc.) that would make the property less valuable, and has assumed that there are no such conditions and makes no guarantees or warranties, express or implied. The appraiser will not be responsible for any such conditions that do exist or for any engineering or testing that might be required to discover whether such conditions exist. Because the appraiser Is not an expert in the field of environmental hazards, this appraisal report must not be considered as an environmental assessment of the property. 6. The appraiser has based his or her appraisal report and valuation conclusion for an appraisal that is subject to satisfactory completion, repairs, or alterations on the assumption that the completion, repairs, or alterations of the subject Property will be performed in a professional manner. ADMINISTRATIVE COW Fraddie Mac Form 465 March 2005 Page 4 of 6 Form 1073 — “WinTOTAL" appraisal software by a fa mode, inc. — 4-BO0-ALAMODE 7 PLAINT. [File No. 01707045671 Individual Condominium Unit Appraisal Report Fi # D1107045GT APPRAISER’S CERTIFICATION: The Appraiser certifies and agrees that: 1. 1 have, at a minimum, developed and reported this appraisal in accordance with the scape of work requirements stated in this appraisal report. 2. | performed a complete visual inspection of the interior and exterior areas of the subject property. | reported the condition of the improvements in factual, specific terms. | identified and reported the physical deficiencies that could affect the livability, soundness, or structural integrity of the property. 3. | performed this appraisal in accordance with the requirements of the Uniform Standards of Professional Appraisal Practice that were adopted and promuigated by the Appraisal Standards Board of The Appraisal Foundation and that were in place at the time this appraisal report was prepared. 4. | developed my opinion of the market value of the real property that is the subject of this report based on the sales comparison approach to value. | have adequate comparable market data ta develop a reliable sales comparison approach for this appraisal assignment. | further certify that | considered the cost and income approaches to value but did not develop them, unless otherwise indicated in this report. 5. | researched, verified, analyzed, and reported on any current agreement for sale for the subject property, any offering for sale of the subject property in the twelve months prior to the effective date of this appraisal, and the prior sales of the subject property for a minimum of three years prior to the effective date of this appraisal, unless otherwise indicated in this report. 6. | researched, verified, analyzed, and reported on the prior sales of the comparable sales for a minimum of one year prior to the date of sale of the comparable sale, unless otherwise indicated in this report. 7. | selected and used comparable sales that are locationally, physically, and functionally the most similar to the subject property. 8. | have not used comparable sales that were the result of combining a land saie with the contract purchase price of a home that has been built or will be built on the land. 9. | have reported adjustments to the comparable sales that reflect the market's reaction to the differences between the subject Property and the comparable sales. 10. | verified, from a disinterested source, all information in this report that was provided by parties who have a financial interest in the sale or financing of the subject property. 11. 1 have knowledge and experience in appraising this type of property in this market area. 12. 7 am aware of, and have access to, the necessary and appropriate public and private data sources, such as multiple listing services, tax assessment records, public land records and other such data sources for the area in which the property is located. 13. 1 obtained the information, estimates, and opinions furnished by other parties and expressed in this appraisal report from rellable sources that | believe to be true and correct. 14. | have taken into consideration the factors that have an impact on value with respect to the subject neighborhood, subject property, and the proximity of the subject property to adverse influences in the development of my opinion of market value. 1 have noted In this appraisal report any adverse conditions (such as, but not limited to, needed repairs, deterioration, the presence of hazardous wastes, toxic substances, adverse environmental conditions, etc.) observed during the inspection of the subject property or that | became aware of during the research involved in performing this appraisal. | have considered these adverse conditions in my analysis of the property value, and have reported on the effect of the conditions on the value and marketability of the subject property. 15. | have not knowingly withheld any significant information from this appraisal report and, to the best of my knowledge, all statements and information in this appraisal report are true and correct. 16. | stated in this appraisa! report my own personal, unbiased, and professional analysis, opinions, and conclusions, which are subject only to the assumptions and limiting conditions in this appraisal report. 17. | have no present or prospective interest in the property that is the subject of this report, and | have no present or prospective personal interest or bias with respect to the participants in the transaction. | did not base, either partially or compietety, my analysis and/or opinion of market value in this appraisal report on the race, color, religion, sex, age, marital Status, handicap, familial status, or national origin of either the prospective owners or occupants of the subject property or of the present owners or occupants of the properties in the vicinity of the subject property or on any ther basis prohibited by law. 18. My employment and/or compensation for performing this appraisal or any future or anticipated appraisals was not conditioned on any agreement or understanding, written or otherwise, that ! would report (or present analysis supporting) a predetermined specific value, a predetermined minimum value, a range or direction in value, a value that favors the cause of any party, or the attainment of a specific result or occurrence of a specific subsequent event (such as approval of a pending mortgage foan application). 19. | personally prepared all conclusions and opinions about the real estate that were set forth in this appraisal report. If | relied on significant real property appraisal assistance from any individual or individuals in the performance of this appraisal or the preparation of this appraisal report, | have named such individual(s) and disclosed the specific tasks performed in this appraisal report. | certify that any individual so named is qualified to perform the tasks. 1 have not authorized anyone to make a change to any Item in this appraisal report; therefore, any change made to this appraisal is unauthorized and | will take no responsibility for it. 20. | identified the lender/client in this appraisal report who is the individual, organization, or agent for the organization that ordered and wil! receive this appraisal report. Freddie Mac Form 465 March 2005 Page 5 of 6 _ 2 a Form 1073 — “WinTOTAL" appraisal software by a la mode, inc. — -800-ALAMODE Individual Condominium Unit Appraisal Report Fie # D1107045GT 21. The tender/client may disclose or distribute this appraisal report to: the borrower; another lender at the request of the borrower; the mortgagee or its successors and assigns; mortgage insurers; government sponsored enterprises; other secondary market participants; data collection or reporting services; professional appraisal organizations; any department, agency, or instrumentality of the United States; and any state, the District of Columbia, or other jurisdictions; without having to obtain the appraiser's or supervisory appraiser's (if applicable} consent. Such consent must be obtained before this appraisal report may be disclosed or distributed to any other party (including, but not limited to, the public through advertising, public relations, news, sales, or other media). 22. | am aware that any disclosure or distribution of this appraisal report by me or the lender/client may be subject to certain laws and regulations. Further, | am also subject to the provisions of the Uniform Standards of Professional Appraisal Practice that pertain to discicsure or distribution by me. 23. The borrower, another lender at the request of the borrower, the mortgagee or Its successors and assigns, mortgage insurers, government sponsored enterprises, and other secondary market participants may rely on this appraisal report as part of any mortgage finance transaction that involves any one or more of these parties. 24. |f this appraisal report was transmitted as an “electronic record’ containing my “electronic signature," as those terms are defined in applicable federal and/or state laws (excluding audio and video recordings), or a facsimile transmission of this appraisal report containing a copy or representation of my signature, the appraisal report shall be as effective, enforceable and valid as if a paper version of this appraisal report were delivered containing my original hand written signature. 25. Any intentional or negligent misrepresentation(s) contained in this appraisal report may result in civil liability and/or criminal penalties including, but not limited to, fine or imprisonment or both under the provisions of Titte 18, United States Code, Section 1001, et seq., or similar state jaws. SUPERVISORY APPRAISER’S CERTIFICATION: The Supervisory Appraiser certifies and agrees that: 1. I directly supervised the appraiser for this appraisal assignment, have read the appraisal report, and agree with the appraiser’s analysis, opinions, statements, conclusions, and the appraiser's certification. 2. | accept full responsibility for the contents of this appraisal report including, but not limited to, the appraiser's analysis, opinions, statements, conclusions, and the appraiser's certification. 3. The appraiser identified in this appraisal report is either a sub-contractor or an employee of the supervisory appraiser (or the appraisal firm), is qualified to perform this appraisal, and is acceptable to perform this appraisai under the applicable state law. 4, This appraisal report complies with the Uniform Standards of Professional Appraisal Practice that were adopted and promulgated by the Appraisal Standards Board of The Appraisal Foundation and that were in place at the time this appraisal report Was prepared. 5. If this appraisal report was transmitted as an “electronic record’ containing my “electronic signature,” as those terms are defined in applicable federal and/or state laws (excluding audio and video recordings), or a facsimile transmission of this appraisal report containing a copy or representation of my signature, the appraisal report shail be as effective, enforceable and valid as if a paper version of this appraisal report were delivered containing my original hand written signature. APPRAISER SUPERVISORY APP Signature Name Geovanni Tellez Company Name Dedicated Appraisers, Inc. Company Address 15023 SW 139th Ptace, Miami, FL 33186 Telephone Number (305)969-3565 Email Address _geotellez@dedicatedappraisers.com Date of Signature and Report November 16, 2007 Effective Date of Appraisal 11/16/2007 State Certification # or State License # or Other TRAINEE State FL Expiration Date of Certification or License State # Ri1s660_ 11/30/2008 ADDRESS OF PROPERTY APPRAISED 5085 NW 7TH STREET, # 815 MIAMI, FL 33126 APPRAISED VALUE OF SUBJECT PROPERTY $ LENDER/CLIENT Name Liz Navarro Company Name City One Mortgage Bankers Company Address 7500 NW 25th Street, Suite 200, Miami, FL 33122 450,000 Email Address _Inavarro@cityonemortgage.com Freddie Mac Form 465 March 2005 Signature Company Name Company Address Appraisers, Inc. 15023 SW 139th Place, Miami, FL 33186 Telephone Number (305) 969-3585 Email Address _jtvargas32@comcast.net Date of Signature November 16, 2007 State Certification # St Cert. Res. REA #RD 6560 or State License # State FL Expiration Date of Certification or License 41/30/2008 SUBJECT PROPERTY Did not inspect subject property ( Did inspect exterior of subject property from street Date of Inspection Did inspect interior and exterior of subject property Date of Inspection 11/46/2007 COMPARABLE SALES C Did not inspect exterior of comparable sales from street [J Did inspect exterior of comparable sales from street Date of Inspection 41/16/2007 Individual Condominium Unit Appraisal Report Fite # _01107045GT FEATURE SUBJECT COMPARABLE SALE # 4 COMPARABLE SALE #5 COMPARABLE SALE #6 Address and 5085 NW 7TH STREET 5077 NW 7TH STREET Unit # 815 1203 Project Name and 8L.UE LAGOON CONDO BLUE LAGOON CONDO Phase 4 1 Proximity to Subjact 0.01 miles NW. Sale Price $___ REFINANCE: $ 455,000} $ $ Sale Price/Gross Liv, Area $ NiAsg. it. $ 493.4954, ft, $ sq, ft $ sq. ft Data Source(s) FARES/MLS/MLX Verification Source(s = EXTERIOR INSPECTION VALUE ADJUSTMENTS DESCRIPTION DESCRIPTION | +(-) $ Adjustment | DESCRIPTION | +(-) $Agjustment | DESCRIPTION | +(-) $ Adjustment Sales or Financing CONVENTIONAL, Concessions NONE KNOWN Date of Sale/Time ACTIVE LISTING Location AVERAGE AVERAGE 2} Leasehald/Fee Simple FEE SIMPLE __|FEE SIMPLE fe] HOA Mo. Assessment 88.00 388.00 4 Common Elements COMMON AREAS | COMMON AREAS fd and Rec. Facilities POOLICLUBH _}POOL/CLUBH fe} Floor Location 8TH FLOOR 42ND FLOOR NO ADdi Fa View LAKE LAKE Fig Design (Style HIGH-RISE HIGH-RISE Faq Quality of Construction AVERAGE AVERAGE, Actual Age 4 YEARS 4 YEARS Condition AVERAGE. AVERAGE. Fd Above Grade Total [acrmns.| Baths | Total [Bdrms.| Baths Total [Bcrms.| Baths Total {adrms.| Baths Room Court 4[272tata2ite Gross Living Area 972 sg. ft. 922 50. ft, NO ADS . ft sq. ft. Basement & Finished NONE NONE Rooms Below Grade NONE, NONE Functional Utl AVERAGE AVERAGE Heating/Coolint CENTRAL CENTRAL Energy Efficient tems STANDARD STANDARD Garage/Carport COV. PARKING |COV. PARKING Porch/Patio/Deck BALCONY BALCONY Net Adjustment (Tat O+ C)- | fj+ Cl- |s + -_ 8 Adjusted Sale Price Net Adj, | Net Adj. % Net Adj. % of Comparables Gross Adj. |§ 455,000) Gross Adj. baby Gross Adj, iS Report the resutts of the research and is of the prior sale or transfer history of the subject property and comparable sales (report additional prior sales on page 3). ITEM SUBJECT COMPARABLE SALE # 4 COMPARABLE SALE #5 COMPARABLE SALE # 6 Date of Prior Sale/Transfer 12/2005 NO PRIOR SALES HISTORY. Price of Prior Sale/Transter 5,000 WITHIN 1 YEAR fe} Data Source(s) FARES/MLX/COUNTY RECORDS _|FARES/MLX/MLS Effective Date of Data Source(s) 44/16/2007 41/46/2007 Analysis of prior sale or transfer history of the subject property and comparable sales NO PRIOR SALES OR TRANSFERS FOR COMPARABLE #4 WITHIN TWELVE MONTHS OF THE EFFECTIVE DATE OF THIS APPRAISAL FOR ANALYSIS. Analysis/Comments MANNER TO THE FINAL OPINION OF MARKET VALUE. COMPARABLE #4 |S AN ACTIVE LISTING LOCATED WITHIN THE SUBJECT'S MARKET AREA AND WAS UTILIZED IN A SUPPORTIVE Freddie Mac Form 465 March 2005 Vey AE he 7h rf a An Subject Photos Borrower/Client_ ALBA L. QUINTERO Property Address_5085 NW 7TH STREET Ci County MIAMI DADE State FL Dp Cods_33126 Subject Front 5085 NW 7TH STREET Sales Price. ~=REFINANCE GLA. 972 Tot. Rooms 4 Tot. Beds. 2 Tot. Bathrms. 2 Location © AVERAGE View LAKE Site Quality AVERAGE Age 4 YEARS Subject Rear Subject Street Photograph Addendum Borrower/Client__ ALBA L. QUINTERO Property Address 5085 NW 7TH STREET Lender City One Mortgage Bankers LIVING ROOM . DINING AREA KITCHEN BATH BATH LAKE VIEW ADVENISTRALIvE COMPLAINT EXHIB} Farm PICSIX2 — "WinTOTAL* appraisal software by ala mode, inc. — son ie IT mage _ [2 OF 2 Comparable Photos 1-3 [Borrower/Client__ ALBA L. QUINTERO Courty_MiAM! DADE State FL. Zp Code_33126 Comparabie 1 5085 NW 7TH STREET Prox. to Subj. Less than .01 mile NW Sales Price 455,000 GLA. 972 Tot. Rooms 4 Tot. Beds, 2 Tot. Baths. 2 Location © AVERAGE View LAKE Site Quality AVERAGE Age 4 YEARS Comparable 2 5085 NW 7TH STREET Prox, to Subj. Less than .01 mile NW Sales Price 450,000 GLA 923 Tot. Rooms 4 Tot. Bedrms. 2 Tot. Baths, 2 Location © AVERAGE View LAKE Site Quality AVERAGE Age 4 YEARS Comparable 3 5085 NW 7TH STREET Prox. to Subj. Less than 01 mile NW Sales Price 450,000 GLA. 923 Tot Rooms 4 Tot. Bedrms. 2 Tot. Bathrms. 2 Location © AVERAGE View LAKE Site Quality AVERAGE Age 4 YEARS AQMABES EXHIBIT # FAGE J OF Form PIC4x6.CR — "WinTOTAL" appraisal software by 2 la made, inc. — 1-800-ALAMODE Comparable Photos 4-6 County _MiAM! DADE. City One Mortgage Bankers. ADMINISTR Comparable 4 5077 NW 7TH STREET Prox. to Subj. 0.01 miles NW Sales Price. 455,000 GLA. 922 Tot. coms 4 Tot. Beds. 2 Tot. Bathrms. 2 Location © AVERAGE View LAKE Site Quality AVERAGE Age 4 YEARS Comparable 5 Prox. to Subj. Sales Price GLA. Tot. Rooms Comparable 6 Prox. to Subj. Sales Price GLA. Tot. Rooms Tot. Bedrms. Tot. Bathrms. Location View Site Quality Age OF Building Sketch Borrower/Client ALBA L. QUINTERO Property Address 5085 NW 77H STREET County MIAMI DADE: State_ Fi Zp Code 33126 QE NAER LS p Boyes Form SKT.BIdSid — *WinTOTAL” appraisal software by a la mode, inc. — 1-800-ALAMODE ~/s omen IT Location Map Borrower/Cient_ ALBA L. QUINTERO Property Address_5085 NW 7TH STREET ci MIAMI County_MIAMI DADE State_ FL. Zp Code 33126 Lender One Mortgage Bankers : ~ Comparable + 4 SO77 NW 7TH STREET § 0.01 miles NW Comparable #3 2 5085 NW 7TH STREET Comparable S085 NW 7TH STREET than 01 mileNW — Comparable # | i 5085 NW 7TH STREET Less than Of mile N' SSP LAINE, Form MAP.LOC — "WinTOTAL" appraisal software by a la mode, inc. — 1-800-ALAMODE ” l le OF _ win beetenenee BH “ 2 a JAIME VARGAS LICENSE LAINT. Print Page | of 1 Jaime Vargas RE2 - CONDO/CO-OP/ViLLA/TOWNHOUSE Southeast Florida MLS ML: M1116654 BC; VISTO2 OF Vistas International Rity LLC. ~ AREA: 31 STATUS: X AD: » 5085e NWx 7 ST . UN: 815 RP: LLP: LPS $360,000 CT: DADE F#: 01-31-31-032-3660 : CITY: MIAMI ZP: 33126 GEOAR: LG: BLUE LAGOON CONDOUNIT 815 BLDG 3 UNDIV 0.1862% INT IN COMMON “FL: 8 = TOTFL: 17 BLDG#: ELEMENTS OFF STYLE: (42 MC: x1 TN: x31 SE: x31 SD: #32 PN: 3660 MAP: %3131 ST: FL TYPE: CONDO DV: BLUE LAGOON CN: BLUE LAGOON INTLVLS: 0 MN:C Fo: U UNIT BLG:; UNIT COMPLX: LAD 979 TA: 0 YR: »2003/RS CONV: N — EFF:N BED: 2 FBATH: 2 HBATH: 0 ak 9 UNIT: CORNER HIGHRISE : DET: N MNLIV: - DOCK SPACE#: GOVRN: CONDO GARAG: 1 ATT CPT: PARK SPACE#: WTRER: Y/ LAGOON . WTRAC; OTHER FACE: SW UNTVW: LAGOON OTHER © . SECUR: ENT-CARD LOBBY INTERCOM BAL&P: Y CONST: CBS DINE: DIN-LIV SF/FF: 0 PARK: 1SPACE COVERED ASSIGNED ~ PARKING RESTRICT: | FLOOR: MARBLE CARPET MIN LS #DAY: 365 #LSE YR: 1 REM: BEAUTIFUL 2/2 UNIT WITH VERY NICE VIEWS OF MIAMI INT'L AIRPORT AND BLUE LAGOON LAKE. MARBLE FLOORS , HEALTH = ES: AND FITNESS CENTER HEATER POOL AND SPA, PARTY ROOMS/ CLUB ROOMS, OUT DOOR ENTERTAINMENT AREA WITH MS: BARBEQUE GRILL, FULLY-EQUIPPED BUSINESS CENTER, WASHER AND DRYERINSIDE THE UNIT. FOOD EMPORIUM AND HS: CONVENIENCE STORE IN THE SOME BUILDING, VALET PARKING, READY TO MOVE, CALL LISTING AGENT BRINGS ALL OFFERS, “+ PRICE NEGOTIABLE *** DIR: 836 E OR W, EXIT ON 57TH AVENUE AND HEAD TOWARDS NW 7TH STREET, MAKE LEFT INTO THE BLUE LAGOON ENTRANCE! CALL LISTING AGENT Fo MORE DETAILS : BRK-REM: LR: . DR: DA: ~ KT: FR: . Fl: PR: MB: 2B: 3B: , 4B: DN: UR: PB: BEDRM: OTHER . cr: 0 MSBTH: CBTUB&SHW PETS: Y/ 20- ROOMS: . INTER: — WALKCLOS EQUIP: .DISHWASH DISPOSAL - DRYER ICEMAKER = MICRO RANGE-E WASHER WNDW: = BLINDS EXTER: BARBEQUE OPENBALC MAINT: ALLAMEN CABLE POOLSVC. SECURITY AMENS: 8Q/PICNIC CLUBHSERM ELEVATOR HEATPOOL POOL SAUNA SPAHOTTB RESTR: . OKLEASE . APPRV: 1-2WKS_ APPL-FEE : HOPA: HEAT: CENTRAL ELEC COOL: CENTRAL ELEC TRMSCONS:CONV . ASSUME: DAV/SOH: «$260,000 MPR: N TOA: C TOTALFEES: 40 iM DMV/ASV: TAXES: «$6,438 TAXYR: 2006 TAX: NOEXEMPT T™: APP FEE: $100 MAINT FEE: $262 LAND LSE: $0 REC LSE: $0 SPEC: AS-IS POSS; FUNDING IDx: Y LPID: 3176476 LS: Alba Quintero APH: 786-525-7968 OPH: 305-373-9095 x 0 2PIDs 2A: 2AG: FAX: 305-373-1921 LTV; ER ON: ON#: 2PH: 786-525-7968 URL: PHOTO: SD3-8 BRD: M EMAILA: luctaquintero21 @hotmail.com , . WD: . COBA: 2% COTB: 2% CONR: VAR: N yar ON vt occuP: OWNER . SHOW: CALL-LA LD: 01/26/07 XD: 04/26/07 PREV STATUS: A. STATUS CHNG: 04/27/07 OK ADV: Y ” PREV§: $389,000 PRICE CHNG; 03/05/07 ORIG$:$400,000 INET:N PD: CONTING: DM: FURN: co: ren. on aren. on. hitn://sef.mlxchange.com/4.2.02.1 4/Search/PrintPreviewDl2.asp Print Page | of | ; . Property History View Broker ML# M1161868 M1161868 M1116654 M1116654 M1116654 ML116654 11/16/07 r > > Kr Status . Price $ 400,000 $ 400,000 $ 360,000 $ 360,000 $ 389,000 $ 400,000 *(c) 2007 - Southeast Florida MLS -- INFORMATION IS BELIEVED ACCURATE BUT IS NOTWARRANTED £2. Aute AM Date - 09/12/07 07/24/07 04/26/07 _ 03/05/07 02/08/07 01/26/07 Agent 3176476 3176476 3176476 3176476 3176476 3176476 http://sef.mlxchange.com/4.2.02.14/Search/PrintPreviewDlg.asp visto2 VISTO2 VISTO2 VISTO2 VISTO2 VISTO2 pA DOM z 11/16/2007, Print . : , , Page | of 1 Jaime Vargas RE2 - CONDO/CO-OP/VILLA/TOWNHOUSE Southeast Florida MLS ML: D1161312 BC; CNTN21 OF: Century 21 Continental Realty AREA: 31 . STATUS: C AD: 1 5085a NWu 7ST UN: = 615 RP; LLP: LP¢ $429,900 CT: DADE F#1 01-31-31-032-3640 CITY: MIAMI ZP: 33126 GEOAR: LG: xBLUE LAGOON CONDOUNIT 615 BLDG 3 UNDIV 0.1862% INT IN COMMON FLl#: 6 TOTFL: 14 BLDG#: 5085 ELEMENTS OFF : STYLE: C42 MC: x1 TN: ¥31 SE; x31 5D: x32 PN: «33640 MAP: +3131 ST: FL TYPE: CONDO DV: NM: Blue Lagoon Condo INTLVLS: 0 MN: FS: "UNIT BiG: UNIT COMPLX: LA: 3979 TA: 0 YR: 12003/RS5 CONV? EFF: BED: 2 BATH: 2 HBATH: 0 #l: 14 UNIT: — HIGHRISE DET: N : MNLIV: DOCK SPACE#: GOVRN: CONDO GARAG: 0 oe PARK SPACE#: WTRER: Y/ LAGOON WTRAC: OTHER FACE: W UNTVW: WATER . SECUR: COMPFENC ENT-CARD GUARDSTE BALEP: CONST: CBS DINE: SF/FF: 0 PARK: 1SPACE : PARKING RESTRICT: . FLOOR: CARPET CERAMIC . MINLS #DAY: 365 #LSEYR: 1 REM: ***LUXUARY 2/2 CONDO WITH WATER VIEW IN THE COMMUNITY OF BLUE LAGOON***SELLING WAY BELOW APPRAISED ES: VALUE*#* INCLUDES FULL BUSINESS, FITNESS, GREAT POOL WITH ENTERTAINMENT FACILITIES, A MINI MARKET AND MUCH = Ms: MORE, CLOSE TO THE AIRPORT AND DOWNTOWN, BRICKELL, CORAL GABLES AND MAJOR HIGHWAYS. A MUST SEE. HS: DIR: BRK-REM: LR: . DR: DA: KT: FR: FL: PR: MB: 2B: 3B: 48: DN: ur: PB: BEDRM: 1BR+GRND : : cr: 0 MSBTH: . PETS:Y/ RES ROOMS: INTER: SPLITBED a EQUIP: DISHWASH DISPOSAL DRYER RANGE-G ——REFRIG WNDW: EXTER: BARBEQUE DECK FENCE MAINT: BLDEXTER CABLE ELEV INSURANCE LAWN-LAND OTHER. POOLSVC ROOF SECURITY SEWER WATER AMENS: BOQ/PICNIC, BUSINESS CLUBHSERM COMMUNRM ELEVATOR EXERCISRM HEATPOOL POOL TRASHCHUT RESTR: OTHER APPRV: 1-2WKS HOPA: U HEAT: CENTRAL ELEC : cool: CENTRAL TRMSCONS:CONV ASSUME: — DAV/SOH: $240,000 MPR: Y - $252 TOA: H TOTAL FEES: . $100 IM DMV/ASV: TAXES: = -#$5,945 TAXYR: 2005 TAX: NOHOMESTD ; ™: APP FEE: $100 MAINT FEE: $0 LAND LSE: $6 RECLSE: $0 SPEC: POSS: FUNDING px: Y EPID: 0680636 LS: Rafael Cerna Jr. APH: = 786.556.RAFA (7 OPH: 305-221-7221 x 11 2PID: 2A: 2AG: FAX: 305-221-1866 Lty; ER GN: ON#; 2PH: URL: . . PHOTO: NOPHO BRD: D EMAILA: Rafael.Cerna@Century2i.com : wo: COBA: 3.0% COTB: 3.0% CONR: 3.0% VAR: N JA: VI: Occup: TENANT SHOW: APPT-ONLY CALL-LA LD: XD: PREV STATUS: A STATUS CHNG: 06/19/07 OK ADV: Y , Lu * PREV$: $325,000 PRICE CHNG: 06/12/07 ORIGS$:$369,900 L2: INET: YILUXUARY 2/2 CONDO THE COMMUNITY OF BLUE LAGOON. GREAT VIEW WITH FULL BUSINESS, FITNESS AND ENTERTAINMENT FACILITIES A MINI MARKET CLOSE ~ aE REE yiy Esher GNC PD: CONTING: DM: FURN: AhepE WY tap Civ ALN TL ran. ; one enn ; ee. EXHIBIT ## oe htto://sef.mixchange.com/4.2.02. 14/Search/PrintPreviewDlg.asp PAGE | OF 11/16/2007 Print . Page | of | Jaime Vargas RE2 - CONDO/CO-OP/VILLA/TOWNHOUSE Southeast Florida MLS Mb: 01122473 BC: USPBO1 OF: ‘US Property Brokers, Inc AREA: 31 STATUS: X AD: 5085 NW 7 St : : , UN: 1108 RP: LLP: LP# $450,000 CT: DADE F #1 01-31-31-032-2910 CITY: MIAMI _. ZPi 33126 GEOAR: LG: BLUE LAGOON CONDO UNIT 1108 BLDG 3 UNDIV 0.1756% INT IN COMMON FL#: 11 TOTFL: 17 BLDG#: 3 ELEMENTS OFF REC 23710-3703 COC 24447-1729 03 2006 1 . . STYLE: C42 MC: wh TN: 31 SE: 31 SD: 32 PN: 2910 MAP: ¥3131 . 9 ST: FL TYPE: CONDO DV: Blue Lagoon Condo CN: Blue Lagoon Condominium INTLVLS: 0 MN: Fe: U” UNIT BLG: : UNIT COMPLX: LA: 923 TA: 923 YR: »2003/NEW CONV: EFF: BED: 2 BATH: 2 HBATH: 0 #1 8B UNIT: OTHER ’ DET: N : MNLIV: DOCK SPACE#: GOVRN: CONDO GARAG: 1 CPT: PARK SPACE#: WTRFR: Y/ LAKE WTRAC: OTHER FACE: UNTVW: LAKE POOL , : SECUR: GUARDSTE SECPATRL BAL&P: Y CONST: CBS DINE: SF/FF: PARK: 1SPACE GUEST VALET PARKING RESTRICT: FLOOR: CARPET MARBLE MIN LS #DAY: 365 #LSE YR: 1 REM: GREAT APARTMENT NEAR MAIN DOWNTOWN AREAS. 5 MINUTES TO CORAL GABLES, 10 MINUTES TO BRICKELL AND 3 MINUTES ES: TO THE AIRPORT. THE APARTMENT HAS JUST BEEN REMODELED WITH MARBLE FLOORS, GRANITE TOP KITCHEN COUNTER AND wg; NEW CARPET IN ROOMS FOR THOSE WHO HAVE ASMA. THE APARTMENT HAS COMPLETE GYM, SWIMMING AND SPA. GREAT HS: PUBLIX SUPERMARKET NEARBY, YOU CAN JETSKY IN THE LAKE WHICH HAS ACCESS IN THE PARK RIGHT NEXT TO THE . BUILDING. CONVENIENT STORE IN CONDOMINIUM, DIR: HEAD SOUTH ON LEJEUNE, HEAD WEST ON 7TH ST. BRK-REM: Great Unit very Nice inside. Just Remodeled. “LR: DR: DA: KT: FR: . FL: PR: MB: 3a: 3B: 4B: DN: UR: PB: BEDRM: 1BR+GRND cr oo. MSBTH: . 1 7 . PETS: Y/ 20- ROOMS: INTER: WALKCLOS : EQUIP: DRYER MICRO RANGE-E REFRIG WASHER SMOKEDET WNDW: , EXTER: OPENBALC MAINT: BLDEXTER COMNAREA ELEV POOLSVC SECURITY TRASHREM AMENS: BUSINESS BILLIARDS CLUBHSERM EXERCISRM POOL SAUNA SPAHOTTS RESTR: _ OTHER APPRV: 1-2WKS HOPA: HEAT: — CENTRAL : COOL: CENTRAL ‘ TRMSCONS:CONV . ASSUME: DAV/SOH: »$57,800,000 MPR: N TOA: C TOTALFEES: $248 ™ DMV/ASV: TAXES: $0 ~ TAXYR: 2006 . TAX: NOHOMESTD ™: APP FEE: $100 MAINT FEE: $0 LAND LSE: $0 - REC LSE: $0 SPEC: AS-IS - POSS: FUNDING IDX: Y LPID: 3067025 LS: Juan Ramirez : APH: 305-407-2662 OPH: 786-522-1121 x 0 2PID: 2a: 2AG: FAX: 845-367-6807 LTY: EA ON: Juan Ramirez ON#: 305-407-2662 PH: = 786-522-1121 URL: www. uspropertybrokers.net PHOTO: sb2 BRD: D EMAILA: jcenmiami@qmail.com wo: COBA: 3% COTB: 3% _CONR: 3% VAR: ON JA: vt: OCCUP: CLLAGT SHOW: LBX-CLA LD: 06/21/06 XD: 04/18/07 PREV STATUS: A STATUS CHNG: 04/19/07 OK ADV: Y . Li: ” PREV$: $380,000 PRICE CHNG: 04/18/07 ORIG$:$380,000 L2: INET: Y/GREAT APARTMENT NEAR MAIN DOWNTOWN AREAS. 5 MINUTES TO CORAL GABLES, 10 MINUTES TO BRICKELL AND 3 MINUTES TO THE AIRPORT. APARTMENT JUST REMODELED. PD: CONTING: DM: FURN: ern. ne. enn. on httn://sef.mIxchange.com/4.2.02.14/Search/PrintPreviewDle.asp DEDICATED APPRAISERS, INC, 15023 SW 139" Place Miami, FL 33186 (305) 969-3565/ Fax: (305) 777-3067 www.dedicatedappraisers.com email: jaimevargas@dedicatedappraisers.com April 14, 2009 Veronica Hardy Investigation Specialist II Bureau of Enforcement RE: DBPR Case # 2009009409 Dear Mrs. Hardy, I am writing in response to the recent letter I received notifying me of a complaint which has been filed against me. The complaint alleges that I violated USPAP on an appraisal I performed T have reviewed the complaint, the original appraisal report, and the review report. [n this review, which you provided along with your letter, the reviewer states that the comparable sales he or she provided were better indicators of value. It is my opinion that as of the effective date of the original appraisal, based on all available market data at the time, the comparables utilized in the original appraisal were accurate indicators of value. The reviewer utilized sales which settled over five months prior to the effective date of the original appraisal report and sales which were currently listed at the time of the original appraisal. The comparable sales utilized in the original appraisal were all settled sales within ninety days of the effective date of the original appraisal. In my opinion, these are better indiearors of the current market at the time. I analyzed all settled sales from within the subject’s project as far as twelve months of the effective date as well as active listings and pending sales. All data was analyzed, confirmed, considered, and verified'in the completion of the original report. ; In the development of this appraisal report, I determined that the subject project should be considered its own market. There were no competing project’s located with the subject's market area. The subject’s project, which is made up of a total of six hundred and eleven units within four buildings, was built in 2003 as rental units. It was converted to condominium ownership in 2005. None of the projects within the subject's market area shared similar characteristics, amenities and/ot market appeal when compared with the subject. : BIDRAIRE TS prem pin eens pre Peat a eA: uaz weet vncamanae BOY Committed to fast, accurate, and reliable service at competitive pricing. 2 te cree Z| th, A All available market data, market trends, and activity were analyzed and considered in the development of the original opinion of value. There were over eighty comparable units which settled within twelve months of the effective date of the original appraisal, that supported the original opinion of value. Due to the fact that the subject project was reasonably new within this market, there was limited availability of re-sales. Therefore, available listings, pending and recent developer sales were considered as value indicators. The reviewer performed this review in late December of 2008, over a year since the original appraisal Market conditions were extremely different and though the review should be performed as of the effective date of the original report, recent market conditions were obvious and difficult to ignore. I believe that reasonable diligence was used in the performance of the original appraisal report and that no violations of USPAP were committed. Sincerely, J. +4 — Jaime T. Vargas eg i EME VE OOMPLAINT

Docket for Case No: 10-003345PL