STATE OF FLORIDA DEPARTMENT OF BUSINESS AND PROFESSIONAL RE FLORIDA REAL ESTATE COMMISSION FLORIDA DEPARTMENT OF BUSINESS AND PROFESSIONAL REGULATION, DIVISION OF REAL ESTATE, Petitioner, vs. FDBPR Case N° 200180826 200180825 HUGO GREGORIO HERNANDEZ AND ZOILA DE CASTRO, Respondents. / ADMINISTRATIVE COMPLAINT State of Florida, Department of Business and Professional Regulation, Division of Real Estate (“Petitioner”) files this Administrative Complaint against Hugo Gregorio Hemandez and Zoila De Castro (“Respondents”) 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 Jaws of the State of Florida, in particular Section 20.1 65 and Chapters 120, 455 and 475 of the Florida Statutes, and the rules promulgated pursuant thereto. 2. Respondent Hugo Gregorio Hernandez is and was at all times material hereto a licensed Florida real estate salesperson, issued license number 0483428 in accordance with Chapter 475 of the Florida Statutes. The last license issued was as an active salesperson at Real Estate Connection, Inc., 10201 Hammocks Blvd. #145, Miami, Florida 33196. FDBPR vs Hugo Gregorio Hernandez FDFPR Case N° 200180826 Administrative Complaint 3. Respondent Zoila De Castro is and was at all times material hereto a licensed Florida real estate broker, issued license number 0362464 in accordance with Chapter 475 of the Florida Statutes. The last license issued was as an active broker at Real Estate Connection, Inc., 10201 Hammocks Blvd. #145, Miami, Florida 33196. 4. Atall times material hereto, Respondent De Castro was broker of record for Pedro Realty USA, Inc. (Pedro Realty). 5. At all times material hereto, Respondent Hemandez was a salesperson employed by Pedro Realty. 6. On or about August 26, 2000, Respondent Hernandez facilitated an exclusive listing agreement with Josefa Morrero (Seller) for property commonly known as 12780 SW 25" Terrace. Miami, Florida (subject property). A partial copy of the listing agreement is attached hereto and incorporated herein as Administrative Complaint Exhibit 1. 7. Onor about August 30, 2000, Respondents facilitated a sales and purchase between the Seller and Rosita Hernandez (Buyer) for the subject property. A copy of the contract is attached hereto and incorporated herein as Administrative Complaint Exhibit 2. 8. Onor about October 16, 2000, Respondents facilitated an amended copy of the sales and purchase contract for the subject property between the Buyer and Seller making Pedro Realty the escrow agent. A copy of the amended contract is attached hereto and incorporated herein as Administrative Complaint Exhibit 3. FDBPR vs Hugo Gregorio Hernandez FDBPR Case N° 200180826 Administrative complaint 9. Pursuant to the amended contract, the parties scheduled closing on or before October 31, 2000. 10. On or about October 14, 2000, Miami Mortgage granted the Buyer a ninety-percent, first mortgage of $138,900 but denied a ten-percent second mortgage of $15,400. A copy of the mortgage letter is attached hereto and incorporated herein as Administrative Complaint Exhibit 4. 11. Mark Maziz, owner of Miami Mortgage, notified Subject De Castro verbally that Miami Mortgage denied the Buyer the second mortgage. 12, At closing, on or about November 6, 2000, the Seller first learned that the Buyer did not have full financing. 13. Because the Seller was buying another house, they agreed to give the Buyer a second balloon mortgage payable in twelve months. A copy of the second mortgage is attached hereto and incorporated herein as Administrative Complaint Exhibit 5. 14. Prior to closing, Respondents failed to get written verification of the mortgage. 15. Prior to closing, Respondents failed to inform the Seller that the Buyer did not have full financing. COUNT I Based upon the foregoing, Respondent Zoila De Castro is guilty of concealment, dishonest dealing by trick, scheme or device, culpable negligence, or breach of trust in any business transaction and violation of a duty imposed by Jaw in violation of Section 475.25(1)(v), Florida Statutes. FDBPR vs Hugo Gregorio Hernandez FDBPR Case N° 200180826 Administrative Complaint COUNT Il Based upon the foregoing, Respondent Hugo Gregorio Hernandez is guilty of concealment, dishonest dealing by trick, scheme or device, culpable negligence, or breach of trust in any business transaction and violation of a duty imposed by law in violation of Section 475.25(1)(b), Florida Statutes. WHEREFORE, Petitioner respectfully requests the Florida Real Estate Commission, 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 or registration or permit, suspension of the license, registration or permit for a period not to exceed ten (10) years, imposition of an administrative fine of up to $1,000 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 permitee to complete and pass additional real estate education courses; publication; or any combination of the foregoing which may apply. See Section 475.25(1), Florida Statutes (1999) and Florida Administrative Code Rule 61J2-24.001. 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 permit; suspension of the license, registration, or permit for a period not to exceed ten (10) years; imposition of an administrative fine of up to $5,000 FDBPR vs Hugo Gregorio Hernandez FDBPR Case N° 200180826 Administrative Complaint 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 permitee to complete and pass additional real estate education courses, publication; restriction of practice; injunctive or mandamus relief: imposition of a cease and desist order; or any combination of the foregoing which may apply. See Section 455.227, Florida Statutes (1999) and Florida Administrative Code Rule 61J2-24.001. SIGNED this .O_ day of Y eb : , 2002. Department of Business and Professional Regulation By: Director, Division of Real Estate ATTORNEY FOR PETITIONER Juana Watkins Florida Bar N° 0192112 Senior Attorney Department of Business and Professional Regulation, Legal Section - Suite N 308 Hurston Bldg. North Tower 400 West Robinson Street Orlando, Florida 32801-1772 (407) 481-5632 (407) 317-7260 FAX FDBPR vs Hugo Gregorio Hernandez FDBPR Case N° 200180826 Administrative Complaint JWik PCP: CV/JR 2/19/02 NOTICE TO RESPONDENTS PLEASE BE ADVISED that mediation under Section 120.573, 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 proscribed, a hearing to be conducted in this matter in accordance with Sections 120.569 and 120.57, 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 Commission 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. INPUT DATE/TIME: | MLS NUMBER: Terminal Use =aiy EXCLUSIVE RIGHT OF SALE LISTING AGREEMENT {This Form har been approved by the Dale Coumy enociations of REALTORS®") C & This EXCLUSIVE RIGHT OF SALE LISTING AGREEMENT (the Agreement”) Is entered into his . ol > : day o. 70 2d wwe __. by rwdbermeen patra) MM. MARRERO (ihe “Owner") {the “Bfoker*), and shall eapire ot 11:59 P M., Miami, Florida Ume, on the 2000 7: (Expiration Date”). day of reement to use Rraker’s professional effaris, as agent for Owner, tor 1, EXCLUSIVE RIGHT OF SALE. In consideration of Broker's A. Find a buyer for the foltawing property, sltunted in Dade County, Florkda, described as follows: STREET ADDRESS: /2790 St) 25 Te. FOLIO NUMBER: 30 YG // 09% 92RD LEGAL DESCRIPTION: Soptawest MAvoRs Sec {ihe teal property and personal propery dercribed sbove Together constinate the “Propesty); end -_ B. Ditsemfnate listing information on the Property fo other bakers tough the sarvices of the Multipte Listing Service (the “ME.S") la actordance with its rutes Inctading, but net limited to, timely nodification tn the MLS of pending J sales. Owner heteby agrecs to the ferms of this Agreemert and gives Broker Jar s Jrclusive right and authority to find a buyer for tie Property at the following price and terms oy at any othereprice ened terms thet Owner vee agcutirg 1 Sales Coyyact: — a firinee’ Dine Aaeeedeed SD ma One /¥5,000, 00 TERMS: 2, BROKER'S OBLIGATIONS. In consideration of this Agreement, the Broker agrees: A. To matket the Property through the MLS and as the Breher deems advisable: B. To edvertise the Property a3 Broker deems advisable in newspapers, publications of other media: C. To furnish information requesied by other brokers and to avslst a cooperating broker In Mnallzing the Sales Comract end closing the transaction of the Property; end - kw D. To withhold ‘got withhold verbel end written offer received hy Broker when s Sales Contract, executed by Owner, Is pending closing on — — 3, OWNER’S OBLIGATIONS. In consideration of this Agreement, the Owner agrees: A. To immediately refer to Broker's attention at! inquiries related to the Property; B. To make the Property evaltabte for showing and inspections at teasonable hours; C. To bmmediately advise Broker of (1) Owner's Intent to lease, mortgage, or otherwise encumber the Property and (2) any facts which might affect the terms right, for the ducation of this Agreement, to Install and display » real estate sign on the Property In compilance with all county. city, municipal ordinances, thon regulations curremty In effect, snd grants permission to Broker to display « “Sold” sign on the Property at any time alter the complete execution of Sales Contenct and 9¢ the discreibon of the Broker; £. Tocomply with all appticable federal, state, local, and essoclation laws, regutations, and rules applicable to reat estate teansactions (inchading without tlmitation all (ternal Revernte Service miles and regulations such 1s those tegarding the Foreign tnvestment in Real Property Tas Act (EtAPTAD: F. To enter tno a written contract with the buyer upon being presented an offer (or the Property In accordance wiih this Agecement, which contract shall be inthe form of a contract for sale, and purchase most recently approved by: (1) the Date County sttocietions of RRALTORS®*; (21 the Florida Astociatinn of REALTORS®; or (1) an equivalent form (the “Seles Commract™). Coptes af the Sales Cardract ete ovailable to Owner upon request; ond G, To perform all of Owner's obligations under the executed Sales Contract Including bat et timited ws the obligations: (1) ta furnish complete evidence of tithe, and (2) (If the Property ism condominium or belnnigs to & humeowness nn) tn provide « prospective buyer with a.current copy af the declaratinn of Condominium (if applicable), the articles of Incorporation of the essociation, the bylaw1, the rules of the associition, and the question and answer sheet provided for by Florkds Stanite $718,504, and any umercdmems lo these documents. All of juch documents shall be provided at Owner's cepense on or before Ue dare Owner and buyer execute a Sales Contract. 4, BROKER'S COMPENSATION A. AMOUNT OF COMPENSATION. Owner jointly and severally agrees to pay to Broker # beokerage fee In the fotiowing emounts (together, the Compensation”); (I) For 8 sate of the Property, Compensatbon shalt be in the amcor af (complete only one) Wal the sates price oe S$ in which cose Compensation shall be peld to Broker by Owner ox provided in Paragraph 4 b. below: oF . (2) TE the Pr becomes available (or teasing during the leew of this Agreement, Compensation shall be in the amount of: (2) {complete only ane) % of the aggregate rental for the term of such alesse, oS which ensount shall be paid to Broker at the time of txecution of such tease and (b) 4 tke smount far any continued occupancy Inching extension, tenewal, or subsequent lease between the same os related parties, whether oral or written, whieh fike amount shall be paid to Braker at the time of each extension, renewal, os subseruert lease 8. PAYMENT OF COMPENSATION. The Cantpensation, as defined above, shall be pakl io Broker by Owner: (1) If Broker, Owner, or any other person finds 1 buyer teady, willing ond able to pruchase the Property at the terns amt fur the price specified herein, or at any other terms of price that Owner may accept by executing 2 Sales Comtract, In which case Compertation shalt be paid to Broker by Orner at the time of Closing under the Sales Contract: Mf Broker, Owner, of any other person finds s tenant ready, willing and eble to tense the Property at the terms specified herein or on other terms accepable to Owner, in which case Compensation shaft be paid to Broker by Owner st ihe time the tense tigns the lease, eatension, renewal, or subsequem lease hetween the same or felated parties. Any changes in the amount of rent paiel, the tern of the lease, of non material changes of the conditions of the tease during any catension, renewal, oF subsequent lease between the same or telated partis shalt not affect Broker's right to Compensation as set forth herein Af during the term of such lense, extension, renewal, of subsequent lease, or within GO days after termination thereof, the tenant or his assigns shall tuy the Property (tom Owner, the Compensatiun agreed in Paragraph 4.A.(1) shail be deemed earned by Broker and payable to Broker as provided in this Agreement The provisions of Uni Paragraph 4.b,(2) shall survive the expiration of this Agreement and shall be binding upon Owner whether of not incorporated In sny Yeare agreememt: (2) Hany Interest of Owner in the Property ts voluntarily wansferved during the term of this Agreement, in which cate Compensation shatt be pald to Broker ty Owner at the time of Irnnafer; (4) Owner willfully prevents the perfarmance hereunder by Broker, In which ease Compensation shall be paid to Broker by Owner upon written demand (3) (Owner faite oF sefuses to perform under the Sates Cortract, In which case Compensation shall be paid ta Broker hy Owner upon written demand; or {6} If Owner and the buyer shall rvutalty rescind the Sales Conteact (excert a Provided for therein) without Piraker's consent, in which eae Compensation shall be paid to Broker by Owner upon weitten demand C. IF BUYER DEFAULTS. Ifa buyer Is found Inmeccordance with ph 4b (1), tras stecte buyer faids to perform (under ® Sales Crnisact of otherwise), Owner shall pay to Broker an emotiat equat ta fifty percent (0%) of the deposit (including any deposh made, or agreed to be mace by the tuyer) which is retained of recovered by of tor the account of Ovener, Sitch armownt: (1) 1 oebied atove, (2) shall be payable ot the the of disbursement of any such deposit: snd (3) shall be as full canshleration for flroker’s services with respect to that buyer, Including costs. D. EXCHANGE OF PROPERTY. During the term of this Agreement, if Owner agrees to (tanser ownership of the Property by or exchange for othes property, Owner sudrorizes Broker to receive # brokerage fee fram the buyer fin addition to the Compensation provided for herein), provided that Broker ht otherwise emlited 1a receive such s fee, Page V of 2 EXHIBIT. U PAGE, 1g. owe Q RATIVE COMPLAINT x al Sale and Purchase Contract Res eT SATION OF REALTORS® 49° st 4. SALE AND PURCHASE: Josefa M. Marrero (“Seller”) end Rositi £, Hernandez) agree to sell and buy on the terma and conditions specified betow the property described as: Address: 12780 $3.4 25 Tertace Miami, Florida 33175 County: Dade - Legal Description: 11, 54 39 SouthWest Manor Sec 2 Pb 73-88 Lot 6 blk 5 Tax !ONo: 30-49-11-004-0020 together with aif improvements and sttached items, including fixtures, built-in fumishings, buill-In appliances, cailing fans, light fixtures, attached wall-to-walt carpeting, rods, draperies and other window coverings. The onty other items included in the purchase are: Stove, refrigerator, washer, dryer central air, water heater, light fixtures, window treatment, 3 fans The following attached items are excluded from the purchasa, 5 The raal and personal property described above a) in this Contract is included in the purchase price, in the purchase is referred to as the “Property.” Personal property listed ptribvtory value and is being left for Seller's convenience 1S¢,080 PRICE AND FINANCING 2. PURCHASE PRICE: 3 2344000.09 ——— payable by Buyer in U.S. currency as follows (a) $ 500.00 Deposit received (checks are subjectioclesranc August 30 , 2000 by : for (Escrow Agent?) ature (b)$ Additional deposit to be made by . {e) Total Financing (sae Paragraph 3 below) (express as @ dollar amount or percentage) Ws Other: (es Balance to cose (not induding Buyer's closing costs, prepsid tems snd prorations). All funds paid at closing must be paid by locally drawn cashier's check or official bank check, of wired funds. 3. FINANCING: (Check as applicable) [_] (a) Buyer will pay cash for Ihe Property with no financing contingency, & (b) This Contract is contingent on Buyer qualifying for and obtaining (1) and/or (2) below (the "Financing’) by . * (if loft blank then Closing Date or within 30 days from Effective Date, whichever occurs first) (Financing Penrod”) ‘3 (4) A commitment for new OY conventional |_} FHA |_) VA financing for § -_ oF % of the purchase price (plus any applicable PMI, MIP, VA funding fee) at the prevailing interest r id loan costs (if FHA or VA, see attached addendum). (312) Approval for Selter financing or assumption of mortgage (see attached addendum). Buyer will apply for Financing within days from Effective Date (5 days if left blank) and will timely provide any and all credit, employment, financial and other information required by the tender, Either party may cancel this Contract if (i) Buyer, after using diligenes and good faith, cannot obtain (he Financing, (including meeting the terms of the commitment), or (ii) the Financing is denied because the Property appraises betow the purchase price and either Buyer elects not to proceed or the parties are unable to renegotiate the purchase price. Upon cancellation, Buyer will retum all Seller-provided fille evidence, surveys and association documents and Buyer's deposit(s) will be retumed after Escrow Agent receives proper authorization from all interested parties. CLOSING 4. CLOSING DATE; OCCUPANCY: This Contract wil be dosed and the deed snd possession delivered on ¥-% OLYs tr Gecip ter (‘Closing Date’), unless extended by other provisions of this Contract. The Property will be swept clean and Seller's personal items removed on or before Closing Date. tf on Closing Date insurance underwriting is suspended, Buyer may postpone closing up to 5 days. 5. CLOSING PROCEDURE; COSTS: Closing will take place in the county where the Property is located, If ttle insurance insures Buyer for title defects arising between the titfe binder effective date and recording of Buyer's deed, closing agent wilt disburse at closing the net sale proceeds to Seller and brokerage fees to Broker as par Paragraph 19. In addition to other expenses provided in this Contract, Seller and Buyer will pay the costs indicated below. (a) Seller Costs: Seller will pay taxes and surtaxes on the deed and recording fees for documents needed to cure title, cartified, confirmed and ratified special assessment liens and, if an improvement is substantially completed as of Effective Date, an amount equal to the last estimate of the assessment; up to % (1.5% if left blank) of the purchase price for repairs to warranted items ("Repair Limit’), and up to % (1.5% if left blank) of the purchase price for wood-destroying organism treatment and repairs (“Termite Repair Umit"), Other: (b) Buyer Costs: Buyer will pay taxes and recording fees on notes and mortgages; recording fees on the deed and finanang statements; loan expenses; pending special assessment ilens, lender's title policy; inspections, survey, flood insurance Other: (c) Title Evidence and Insurance: Check (1) or (2): C2 (1) Selter will provide a Paragraph 10{a)(1) owner's title insurance commitment as tile evidence. (_) Seller (.) Buyer wi select the title agent. {_) Seller (_} Buyer will pay for the owner's title policy, search, examination and related charges Each party will pay its own closing fees. 1_](2) Satter will provide tile evidence as specified in Paragraph 10(a)(2). |_) Seller X} Buyer will pay for the owner's titte policy and select the title agent. Sefler will pay fees for litle searches prior to closing, including tax search and lier search fees, and Buyer will pay fees for title searches after closing {if amy), title examination fees and closing feas (d) Prorations: The following items wil be made currant {if applicable) and prorated as of the day before Closing Dale rea estate taxes, interest, bonds, assessments, association fees, insurance, rents and other current expenses and revenues of the Property, If taxes and assessments for the current year cannot be determined, the previous year's rates will be used with adjustment for exemptions and improvements. Buyer is responsible for property lax increases due to change in ownership. (e) Tax Withholding: Buyer and Setter will comply with the Foreign Investment in Real Property Tax Act, which may require Seller to provide additional cash at closing if Seller is a “foreign person’ as defined by federal law. (f} Home Warranty:|_} Buyer {_) Seller [_) N/A will pay for a home warranty plan issued by ati cost not to exceed $ . Ahome warranty pian provides for repair or replacement of many of a home's mechanica systems and major buill-in appliances in the event of breakdown due to normal wear and tear during the agreement parioc PROPERTY CONDITION 6. INSPECTION PERIODS: Buyer will complete the inspections referancad in Paragraphs 7 and 8(a}{2) by (within 10 days from Effective Date if left blank) Cinspection Period’), the wood-destroying organism inspection b: . {pfor to closing, if lent blank), and the waik-tnrough Inspection on the day before Closiny Date, ther time agreeable to the parties. Buy ( )and Selter. re ) acknowledge receipt of a copy of this page, which is Page 1 of 4 Pages. soe - EXHIBIT. a= PAGE &U P.AZ “Regldential Sale and Purchase Contract FLORICA ASGOC'ATION OF REALTORS® 4. SALE AND PURCHASE: Josefa M. Marrero _. . _ ("Seller"} . ("Buyer") 40° 41 42 43 FAR Mew TOP T1960" onda A on and Rasita_E. Hernande?. _ . _ oe . agree to sel and buy on Ine lerms and conditions specified below "he eroperty dascribed as Addrass, 1278C S,¥ 25 Terrace — ; . . oe . Miami, Florida 375 oe County’ Dade. Legal Oescriplion 1154 32 SouthWest Manor Sec 2 PD 73-88, . . Lot @ Blk 5 . Tax!Q.No 30-49-11-004 . together with all imorovemants and altached items, including Fixtures, durtn fumushings. built-in appliances, ceiling fans, lignt fixtures, attached wall-lo.wall carpeting, rods, draperies and othes window coverings The only olher ilems included in the purchase are Stove, refrigerator, washer, dryer, central air, water neater, light fixtures window treatme: fans. . . ~ : ” : 020 ‘ The following allached tems are excluded ‘rom he purchase The caarand narsonal propety described above as indldadin hs purchase i referred te as ne “Property " Personal property listed on thig Contract is included in the purchasa price, has no contribulory value and is being te for Seties convemence PRICE AND FINANCING 2. PURCHASE PRICE: $154 900,00 _ payable by Buyer in US currency as follows (a) s post racaiyed S yre subject to clearance) October 16 0 2000_ by —_ ee OLE LOL deg Pedro Realty USA, Inc ("Escrow Agent’) Signs” Nene of Company (b)$ __SRdainenal depésd to be made by ; . (c] co ee Total Financing (see Paragraph 3 below) (express as a dollar amount oF percentage) (4) $ . . Other . coon a _.. {ey $ Balance lo close (not including Buyer's closing costs, ore! aid ilems and prorations). All hinds paid 1g Buys Pp: at clasing musi be pad by focally drawn cashier's check of official bank check, of wired funds 3. FINANGING, (Check as applicable) .} (a) Buyer will pay cash for the Praperty with no financing contingency YW (b) This Contract is contingent on Buyer qualitying for and obtaining (4) and’or (2) below (the "Financing’) by . se _________._ lif left blank than Closing Date or within 30 days from Effective Date, whichever occurs first) ("Financing Period”) TAU) A commitment ‘ornew XBcanventionsl LJ FHA VA financing for $ oF ___ thot the purchase prive (plus any applicable PMI, MIP, VA funcing fee) at the prevailing interest raie and loan costs (if FHA or VA, see attached addendum) _J(2) Approval for Seller financing or assumption of morigage (see attached addendum) Buyer will apply for Financing wathin days from Effective Date (5 days if left blank) and will limely provide any and all credit, employment, financial and other information required by the tender Either party may cancel this Contract if (i) Buyer, after using diligence and good faith, cannot obtain the Financing, (including meeting the terms of the commitment), of {ii} Ine Financing is denied because the Properly appraises below Ihe purchase price and either Buyer elects nol to proceed or the parties are unable ta renagotiate the purchase price Upon cancellation, Buyer will return all Seller-provided title evidence, surveys and association documents and Buyer's deposil(s) will be retumed after Escrow Agent receives proper authorization from gil interested parties CLOSING pre efor? 4. CLOSING DATE, OCCUPANCY This Contract il be closod and the deed and possession deliverod on Octobe 7 37 3200. (‘Closing Date’). unless extended by other provisions of this Contrant, The Property will be swept clean and Sellers personal items removed on or befora Closing Date fon Closing Date insurance underwnung is suspended, Buyer may postpone closing up to S days. 5. CLOSING PROCEDURE, COSTS: Closing will take place in the county where the Property is tocaled If fifte insurance insures Buyer for litle defecis arising between the title binder effective date and recording of Buyer's deed, closing agent will disburse al closing the net sale proceeds to Seller and brokerage fres ta Broker as par Paragraph 19 In addition to other expenses provided in this Contract, Seller and Buyer will pay the costs indicated below {a} Setler Costs: Seller will pay taxes and surtaxes on the cacd and recording fees for documents needed to cure title; certified, confirmed and ratiied special assessment liens and, if an improvement is substantially completed as of Effective Date, an amount equal to the fast estimate of the assessment, up 10 % (1.5% if left blank} of the purchase price for repairs to warranted ilems (“Repair Limit"), and ug to =, % (1.5% at lef blank) of the purchase price for wood-desiraying arganism treatment and repairs (“Termite Repair Limit"), Other — (b) Buyer Costs: Buyer will pay taxes ond recording fees on noies and morigages. recording feés on ihe deed and financing statements, loan expenses; pending special assessment lens: lenders (le policy, inspections, survey, food insurance, Other (c) Title Evidence and Insurance: Check (Tjor (2): 7 sos — _} (1) Saller will provide a Paragraph t0(a)(1) owners hile insurance commitment as life eviderce “_) Seller 3 Buyer wil select the title agent T) Seller Buyer will pay for the owner's fille policy, search, examination and related charges Each party will pay i's own closing fees 312) Seller will provide vile evidence as specified in Paragraph 10(a)(2). 1 Seller Buyer will pay for the owners fille Policy and select the tile agent. Seller will pay fees for litle searches pror to Clasing, including tax search and lier search fees, and Buyer wil pay fees for tille searches after closing {if any). title examination fees and closing fees (d) Prorations: The following items will be made current (if applicable) and prorated as of the day before Closing Date real astale taxes, inlerest, bonds, assessmenis, association fees. insurance. rents and other current expenses and revenues, oo the Property If taxes and assessments for the current year cannol 52 determined, the previous years rates will be used with adjustment for exemptions and improvements Buyer is responsible for property tax mncreases due to change in ownership (#) Tax Withholding: Buyer and Seller wil comply with the Foreign Investment in Real Property Tax Adi, which may require Selier to provide additional cash al dosing if Seller is a “foreign person” 0s defined by federal law (f} Home Warranty: _j Buyer _) Seller “_y N/A will pay for a home warranty plan issued by eee ee A cnst not te exceed $e, A Rome warranty plan provides ‘or repair or replacement of many of a home's mechanical syslems and major duill-in appliances in the event of breakdown due to normal wear and lear during the agreement period PROPERTY CONDITION 8. INSPECTION PERIOUS: Buyer mill complete the inspections referenced in Paragraphs 7 and 8(a)(2) by (anthin 10 days from Effactive Date if left blank} (“inspection Pernod”). the wood-dastroying organism inspection by . . _ (prior to closing, #f left blank), and tne waik-through inspection on the day before Closing ijate o* pay fine agreeable lo fre pames y —_} na Seller &4. 277 Adon OF REALTORS E Al Righty Arsetrved AR Se Bee On om bE Faurntlel CLE IBOES F nar Wie ogg, Camas Tawish p Mehqae 10035, (NOT, 183 9H08 REALTOR” beaut _._) acknowdedge roceipt of a cony of this page which is Page 1 of 4 Pages. Sider we Pop fat ey PM Plas 7 HEAL ONSMERTY DISCLOSURE: Seller see's sal Seiler does not know of ary ‘acts that water, __sfect the value of “Qo tne Waperty studing vintat ons af ge varamerial laws cules ard reguiations, other than irose thot Buyer bon readily chseve 74 a¢ thal are known by or have been disc-csed lo Suyer 80 {a) Energy Efficiency: Buyer ackrewedges receipt of the Florida Building Energy-Efficiency Rating Sysiem brochure. If this isa 81 naw home, the Suider's FL-EPL card's attached ag an addendum. a2 {b} Racton Gas: Radon +s a naturally occurrng radioactive gas that, when 1 has accumuialed 1 a duilding in sufficient a3 quanthes may present health risks ta parsons who are excosed fo t over time Levels of radon that exceed ‘sderal and 84 state guidelines hava deen found ‘¢ buildings in Flonda Addilional information regarding radon and radon testing may be 8s obtained "om your county cublic haath unit Buyer may within the Inspection Period, have an appropriately ficansed person ae test the Propeny for radcn if the :adon ‘evel exceeds acceptable EPA standards, Seiler may choose to reduce Ihe radon a7 level fo ar acceptable EPA level, failing which aither party may cancel this Contract 88 (¢} Flood Zone. Buyer 1s advised to vanity by survey, mth the lender and wilh appropnaie government agencies which flood a9 zone the Sroperty '3 in whether flood insurance 14 required and whal resinctions apply to improving the Property and rAbullding 90 in the event of Casually ‘f the Property 1s in a Spacai Flood Hazard Area or Coastal High Hazard Acea and the buildings are built ot below Ire minimum Nood elevation, Buyer may cance’ this Contract by delivenng wrilien notice to Seller within 20 days from 92 Effective Cate, fang which Buyer accepts the existing elevation of the buildings and zone designation of the Property 93 {d} Homeowners Association: i membersmp mo a homeowners’ agsceaton is Mandatory an association disclosure 94 summary i$ atlached and inccrocrated inte thes Contract BUYER SHOULD NOT SIGN THIS CONTRACT UNTIL 95 BUYFR HAS RECEIVED AND READ THE DISCLOSURE SUMMARY. 96 8. MAINTENANCE, INSPECTIONS AND REPAIR: Seller will keep the Property in the same condition from Effective Date untt 97 closing, except for normal wear and ‘ear ("mamntenance raquiremen!", and repaus requirad by tris Contract Sellar will provide 98 access ana ullines for Buyers inscections Buyer will repair ail damages to the Progeny resulting fram the inspections and 99 return the Proparty to its pre-inspection condition if Seller is unable to complete required renairs or trealments prior to 100 closing, Seller wi give Buyer a credit at closing for the cost of the repairs Seller was obligated to make Seller will assign all 101 assignable repair and treatment contracts to Buyer at closing 402 {a) Warranty, Inspections and Repair. 103 (1) Warranty: Salter warrants that nonteasec mayor appliances and heating, cooling, mechanical, electrical, security 104 sprinkles septic and plumbing systems, seawall, deck and pool equipment, if any, are and will ve maintained in working 108 cordiian untl closing that the siructures (including roofs} and pool, if any, are structurally sound and watertight, and 106 that tne Srnparty has oreper permils. Seller does not warrant and i$ fet required to repair cosmetic conditions. unless. 107 the cosmetic condiias easulted fron) a defect in a warranted item Seller is net obligaled to bring any item into 108 compliance with musing building code requiatens unless necessary to repair a warranted item. “Working condition” 109 meacs operating in the manner in which the tem was designed 0 operate and “cosmetic condilions” means aesthetic 410 impe: ions tha! do net affect tha workng condition of the item, inciuding pitled marcite, missing of tom screens, Wi fogget windows, tears, wom spots and ‘iscoloralion of foor cover:ngsiwallpapersiwindow treatmenis, nai holes. 112 seraiches, dents, scrapes, chips and caulking in bathroom ceiling/walls/floonng/tle/fixture s/mirrors. and minor cracks in cae Noor fila siwindows/dreveways/sitewalk s/pocl Hecks/garage and patic Noors. 114 (2) Professional Inspection: Buyer may nave wartanted items inspecied by a person who specializes in and holds an 115 occupational hcense (if required by law) to Conduct home inspections of wha holds a Flonda license to tepai¢ and maintain 16 the items inspected (prolessional inspecto’) Buyer must, within 5 days from the end of the Inspection Period, deliver N17 written aotice of any items that arc not in the condition warranted and a cory of the inspeclors written report, if any, to 118 Seller !f Buyer fais to deliver imely wntien nolice Buyer waves Seller's warranty and accepts the items fisted in 19 subparagraph (a) in their "as is” conditions, excep! tnal Seller must meet the maintenance requirement 120 (3) Repair. Seller 1s obligated onty to make repa:rs necessary to bring warrantied items into the condilion warranted, up 121 to the Repair Limil Seller may, within 5 days from recept of Buyer's notice of itams that are not in the condition 122 warraniad, have a second inspecton made by a professional inspector and wilt report repair estimates to Buyer !f the 423 first and second inspection reports differ and ine parties cannot resolve the differences, Buyer and Saller together wit 124 choose and equally split the cost of, a third inspector, whose wntten report wil be binding on the parties if the cost to 125 repar warranted tems equals of 13 'ess than ihe Repair Limit, Seller will have the repairs made in a workmanlike manner 126 by an appropriately licensed person, If the cost to repair warranted items exceeds the Repair Limit, eilher party may 127 cance! this Contract unlass either party pays the excess or Buyer designates which repairs lo make at a lofat cost to 128 Seller not exceeding the Repair Limil and accepts the balance of the Property in its “as is” condition 128 (b) Wood-Destroying Organisms: “Wood-destroying organism” means arthropod or plant life, including termites, powder-post 430 healles. oldhouse borers and wood-decaying fung,, thal damages or infasts seasoned wood in a structure, excluding fences 131 Buyer may, at Buyer's expense and prior to closing, have the Propacty inspected by a Florida -rcensed past control business tc 132 detnrming the existence of past or present wood-deslroying organism infesiation and damage caused by infestation if the 133 inspector finds evidence of infestation or damage, Buyer will deliver a copy of Ihe inspectors written report (0 Seller within S 194 days fram the date of Ihe inspection: Seller is not obligated to treat the Property if all the following apply (1) there is no visible live 135 infasiation, (i) the Property has previously been treated and (in) Seller transfers a currant full treatment warranty to Buyer at 136 closing Otherwise, Seller will nave § days from receipt of the inspector's sport to have reported damage astimated by a 137 licensed building of general contractor and corrective treatment estimated by a licensed pest contro} business Seller will have 138 traatments and repairs made by an appropriately licensed person at Sellers expense up {o the Termite Repair Limut If the cost 139 to trea’ and repair the Property exceeds ihe Ternule Repair Limit, either party may pay (he excess failing which either party may 140 cancel this Contract. if Buyar fails to timely deliver the inspectors written reoct Buyer accepts the Property “as is” with regard 141 to wood destroying organism infestation and damage, subject to the maintenance requirement 142 (c) Walk-through Inspection: Buyer may watk through the Property solely to verify that Seller has made repairs required 143 by this Contract and has mel conlractual abligations No other issues may be raised as a tasult of Ihe walk-through jag inspection If Buyer fails to concuct this inspection, Seller's repair ang maintenance odjigations will be deemed fulfilled 145 9. RISK OF LOSS: If any gortion of the Proparty is damagad by fire or other casualty before closing and can be restored within 146 46 days from the Closing Date to substantially the same condition as (was on Effective Date, Selter will, at Seller's expense, 147 restore the Property and the Clasing Date will be extended accordingly Hf the restoration gannol be completed in time, Buyer 148 may accent the Property “as 13" with Seller assigning the insurance proceeds ‘or the Property to Buyer at closing, faing which 149 either party may cance! this Contract . 180 THLE 184 46, TITLE: Seller will coovey markatabia file to the Property by statutory warranty dead of trustee, personal representative or 152 guardian deed 15 approori 0 Sellers status 163 (a) Tite Evidence. Tile evlence wit show leqad aeess to the and marretable tle of recor! in Salter in accondarco ‘with 154 curren! ite standards adopted by the Ficrida Bar, subject follawang file exceptions, rave of which prevent residential 155 use of the Proparty covenants, easanents and sions of reard, matters of plal, axisiag zoning and govomment 156 regulations. oi, gas and rneral rights of canard uf Inera is PO night of entry, current laxes, mortgages that Buyer will assume, and 157 encumbrances that Seller wll discharge at or betore closing Seller will, pnor to closing. drlive: to Buyer Sefter's choice of one of 158 the following types of title evidence, which must be generally accepted in the county where the Property is located (specity in i59 Parsee) Sic) the selected type) Setler will use option (yin Palm Baaen County and option (2) in Dade County 160 (4) itle insuranca commitment issued by 4 Florda-lcensed ‘ite nsurer in the amount of the purchase price and 161 / So APbol giny 9 tlle exceptions " forth in this Contract 162" Buy fA A ___) and Seller 1.222) ¢ ) acknowledge ereip! of a copy of this page. which 's Page 2 of 4 Pages FARE kev (OVS 51 AGA Tlocida Aasaciatar of REAL GR Al) Raghty Pages ih 174 175 176 WT 178 179 1B 181 4B2 183 184 185 233 234 235 236 237 238 FAR.S Rey IVE D19GN Forde Assocalor yCCAL TCR All Pgnts Reserved ATS a Poy at PM : P.ad (2} An existing abstract of title ‘om iputadie ard axsting abstract firm (i fire “$ret existing, teers abstract must 3e carled as correct by ar axisieg fir; surpecting to de an accurate synopsis of the instruments affecting tille to the Property recorded in the public records of the county where Ihe Property :s located ard certified to Effective Dale However F such an abstract 's rol avaiable to Setler, ‘sen 3 prior owner's title policy acceptable to the proposed insurer as a dase for reissuance of covetase Sellar will cay for copies of ail policy exceptions and an update in a fonnal acceotaole to Buyer's closing agent from the policy efectve date and certified to Buyer of Buyer's closing agent, together with copes of all documenis recited in the pnor golicy ard in the update If a priot policy is not available tc Selier then (1) above will be the tile evidence Title evidence will be delivered no later than 10 days before Closing Oate (b} Title Examination: Buyer will examine the title avidence and deliver written notice to Seiler, within § days fram receipt of utle eviderce but no later than casing, of any defects that make the hile unmarkelable. Seller wil have 30 days from receip! of Buyers notice of defects (‘Curalve Penod™) lo cure the defects at Seller's expense 'f Seller cures ihe defects wihin the Curative Penod, Seller will defver writen ncuce to Buyer and the parties will close the transaction on Closing Dale or within 10 days ‘rom Buyer's recenpt of Seller's netca if Closieg Date nas passed Mf Seller is unable to cure the defects within Ihe Curative Period. Selier wit deliver written cotce to Buyer and Buyer will, within 10 days Irom recent of Seller's notice. either cancel this Contract of accept tille with axsting defects and close the transaction {c} Survey: Buyer may. prior to Closing Cate and at Buyer's expense. have the Property sutveyed and deliver written notice to Seller, vattun 5 days from receipt of survey but na tater than des.ng. of any encroachments on the Property, ancroachments by the Propeany s improvanrents on cther lands or deed restriction or zoning violations Any such encroachment or vigtation will be treated in the same manner as a litle defect and Buyer's and Seller's obiigations will be determined in accordance with subparageaph (b) ahove !f any part of the Properly lies seaward ol the coastal consiruction conirol line, Seller will provide Buyer with an affidavit cr survey as required by law delineating the line's ocation on the property, unless Buyer waives (his requirement in writing MISCELLANEOUS 14. EFFECTIVE DATE, TIME: The “Effective Dale” of this Contract is the dale on which the last of lhe parties initials of signs the lalesi offer Time is of the essence for all provisions of this Contract. Ait time penods will be compuled in business days (a “business day“ is every calendar day except Saturday, Sunday ard national ‘egal holidays). {f any deadline falls on a Saturday. Sunday of ational legal holiday, performanca wil ba due the next business day All lime periods will end at 500 p.m. local me (meaning in Ihe county where the Property is located) of the appropriale day 12. NOTICES: Ail notices will be made to the sarties and Sroker Sy mal, personal delivery or electronic media. Buyer's failure to dalivac timely written natice ta Sailer, when such notice is required by this Contracl regatding any contingencies will tender that contingency null and yord and the Contract will be construed as if the contingency did not exist 13, COMPLETE AGREEMENT: Ths Contract is the enlire agreement between Buyer and Seller, Except for brokerage agreemenls, no prior or present agreements will bind Buyer, Sellec or Broker unless incorporated into this Contract. Modifications of this Contract will not be binding unless in writing, signed and delivered by the party to de bound. Signatures, imtals, documents referenced in this Contract, chunlerparts and written modifications communicated electromecally of on paper will be acceptable for all purpases, including delivery, and wil ba binding Handwritten of typewrilten terms inserted in or attached lo this Contract preva over preprinted terms if any provision of ths Contract is or becomes invalid or unenforceabic. all remaining provisions wall continue to be fully affective This Contract will not be recorded in any public records. 14, ASSIGNABILITY; PERSONS BOUND: Buyer may not assign this Contract wilhoul Saller’s written consent The terms “Buyer,” “Seller,” and “Braker” may be singular or plural This Contract «3 binding on (he heirs, administrators, executors, parsonal represanialives and assigns (if permilted) of Buyer, Seller and Broker DEFAULT ANO CISPUTE RESOLUTION 18 ORFAULT " fa) Seller Default: Hf for ary reason other than falure cf Seller to make Seller's title markelable after diligent sffor, Sellar fails, refuses ar neglects to partacm this Contract, Buyer may choose lo receive a return af Buyer's deposil without waiving the right to seek damages or to seek specific performance as per Paragraoh 16 Selter will atso be liable to Broker for the full arrount of the brokerage fee (bh) Buyer Orfault: if Buyer tails to perform) this Contract within the time specified, including timely payment of alf deposits, Seller may choose to retain and collect all deposits paid and agreed to be paid as liquidated damages or to seek specific pertarniance as per Paragraph 16, and Broker will, upan demand recaive 50% of all deposits paid and agreed lo be paid (to be spit equally ameng cooperating brokers) up to the full amount of lhe brokerage fee 16 DISPUTE RESOLUTION: This Contract will be construed under Florida taw Ail controversies, claims, and other matlers in question ansing out of or relating to this transaction or this Contract or ils breach will be settled as follows (a) Disputes concerning entitlement to deposits made and agreed to be made, Buyer and Sellar wil! have 30 days from the date conflicting demands are made to atlempt to resolve the dispute through mediation if that fails, Escrow Agent will submit the dspule, dso requimd by Florda faw. to Eectaw Agent's chowe of arbitration, a Flonda cou or [he Florida Real Estate Comnussion. Suyer and Seller wil be bound by any resulting settiement of order. (b) All other disputes: Buyer and Selfer wil! have 30 days from the date a dispute arses batween tham to atlampt lo resolve the matter through mediation, “failing which the-paries wil resolve the dispute through neutral binding arbitration in the county where the Property 1s located The arbilrator may nol alter the Contract lerms of award any remedy not provided for in this Contract. The award will be based on the grealer weight of the evidence and will stale findings of fact and (he contractual authority on which it 1s based If the parties agree to use discovery, it will be in accordance with the Flonda Rules of Civil Procedure and Ihe arbitrator will resolve all discavery-related disputes Any disputes wih a real estate licensee named in Paragraph 19 will be submitted lo arbitration only if the licensee’s broker consents in writing to become a party lo (ne proceeding This Gause will sumive ciosing (c) Mediation and Arbitration; Expenses: “Mediation” is a orocess ia which parties allempi to resolve a dispute by submitting it fo an impartial mediator who facilitates the reso‘ution of the dispule bul who 1s Not empowerad lo impose a settlement on the parties Mediation will 6@ in accordance with the rules of the American Mediation Association or other mediator agreed on by the parties. The parties will equally divida the mediation fee, if any “Arbitration” ig a process in which the parties resolve a dispute by a Neanng before a neutral person who decides the matter and whose decision is binding on the parties Arbitration will be in accordance with the rules af the Amencan Arbitration Association or other’ arbitrator agreed on by the parties Each party to any arbitration will pay its own fees, cosls and expenses, including attorneys’ fees, and will equally split the arbitrators’ fees and admmistralive fees of arbitration . ESCROW AGENT AND BROKER 47, ESCROW AGENT: Buyer and Seller authorize Escrow Agent ‘a recaive, deposit and hold funds and other items in escrow and, subject to clearance, disburse them upon proper authorization and in accordance with the terms of this Contract, Including disdursing brokerage fees The partes agree that Escrow Agent wili nol be taole to any person for misdelivery of escrowad items lo Buyer or Seller, uniess the misdelivery is due to Escrow Agent's willful breach of this Contract or gross negligence If Escrow Agent intespleads tho subject matter of the escrow, Escrow Agent will pay the filing fees and costs from the deposi! and will recover red 3sonab lorneys’ faes and costs to be paid from the escrowed funds er equivalent and charged and awarded as court costs in fagor of 4 grevaing parry All claims against Escrow Agent will oe arbitrated, so long as Escrow Agent consents to arbitrate A 27 _)and Seller ra aA ) acknowledge recent of a copy of ths page. which is Page 3 of 4 Pages (> FLAS UZ 18. PROFESSIONAL ADVICE, BROKER Li. ITY: Scone advises Buyer ard Seiler tc verfy ail ‘acs a... 2presentations that 243 are imporant '3 them ard fo