STATE OF FLORIDA DEPARTMENT OF BUSINESS & PROFESSIONAL REGULATION (2) , FLORIDA REAL ESTATE APPRAISAL BOARD ae J Se & , FLORIDA DEPARTMENT OF BUSINESS & Ms 3 PROFESSIONAL REGULATION, DIVISION OF REAL ESTATE, \0- (ogd re Petitioner, Vv. CASE NO. 2008060772 CARLOS MANUEL INSIGNARES, Respondent. / ADMINISTRATIVE COMPLAINT The Florida Department of Business & Professional Regulation, Division of Real Estate ("Petitioner") files this Administrative Complaint against Carlos Manuel Insignares(“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 3976 in accordance with Chapter 475 Part II of the Florida Statutes. 3. The last license the State issued to Respondent was as a H:AFREAB\insignares772.doc ! FDBPR v. Carlos Manuel Insignares Case No. 2008060772 Administrative Complaint state certified residential real estate appraiser at 8502 SW 146th Court, Miami, Florida 33183. 4. On or about August 12, 2007, Respondent developed and communicated an appraisal report (Report) ona property commonly known as 1800 Meridian Avenue, #9, Miami Beach, Florida 33139 (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. 6. Petitioner obtained an opinion from an expert, a copy of which is attached hereto and incorporated herein as Administrative Complaint Exhibit 2. 7. Respondent's letter to the Complainant is attached hereto and incorporated herein as Administrative Complaint Exhibit 3. 8. Respondent also provided a letter to Petitioner's investigator, a copy of which is attached hereto and incorporated herein as Administrative Complaint Exhibit 4. 9. Respondent made the following errors or omissions in the Report: . A) Respondent checked the box that he analyzed the contract, but stated only that both parties are knowledgeable, signed the contract, and agreed upon the price; H.:AFREAB\insignares772.doc 2 FDBPR v. Carlos Manuel Insignares Case No. 2008060772 Administrative Complaint B) Respondent incorrectly listed the date of the contract as “current”; C) Respondent’s work file contained an unsigned copy of the contract, and there is no indication of how Respondent verified the existence of a binding contract; D) Respondent failed to note that the sale called for 100% financing; E) Respondent noted that property values were increasing, yet failed to make time of sale adjustments while using Comparable Sales 1 and 2 that were 5 and 6 months old, respectively; F) In August 2007, condominium unit housing trends showed declining property values; G) Respondent stated that no unfavorable conditions were noted for the Subject Property neighborhood, while failing to mention the impact of the Miami Beach Convention Center and associated parking directly across the street from the Subject Property; H) Respondent listed parking as off-site, when a single parking space was provided for 6 of the 10 units in the Subject Property complex, and on-street parking was severely limited at pay meters or spaces not specifically reserved for residents; T) Respondent failed to account for the Miami Beach H:\FREAB\insignares772.doc 3 FDBPR v. Carlos Manuel Insignares Case No. 2008060772 Administrative Complaint Convention Center in the Present Land Use calculations for the Subject Property neighborhood; J) Respondent listed incorrect zoning for the Subject Property of RM-2, instead of RM-100; K) In the Project Information section of the Report, Respondent checked the box indicating the Home Owner’s Association was not under the control of the developer, yet indicated the management group was the developer; L) Respondent failed to describe the Subject Property common elements and recreational facilities, stating only “Common Elements” ; M) The Subject Property project’s common elements consisted of minimal landscaping, on-site surface parking for 6 cars, anda covered walkway for second floor units, in contrast with Comparable Sale 1, which had valet parking, a rooftop pool, fitness center, concierge, room service, bar and restaurant on premises, and was within walking distance from the beach. Respondent failed to adjust Comparable Sale 1 for these superior amenities; N) Respondent failed to note or adjust for Comparable Sale 2's amenities which included a gated entry and walking distance to the beach; 0) Respondent failed to note or adjust for Comparable Sale H:\FREAB\insignares772.doc 4 FDBPR v. Carlos Manuel Insignares Case No. 2008060772 Administrative Complaint 3's gated entrance, swimming pool and patio, and keyed entrance to the two two-story buildings making up Comparable Sale 3’s project; P) Use of Comparable Sale 1 was further inappropriate in that it was a condominium/hotel furnished as a hotel room, and was a developer sale; Q) Respondent relied upon incorrect MLS information in establishing that the gross living area for Comparable Sale 1 was 500 square feet, when a review of condominium documents available online revealed Comparable Sale 1 had 391 square feet of gross living area; R) Respondent misstated the name of Comparable Sale 2's complex; S) In using Comparable Sale 2 which sold for $402,500, Respondent ignored other more recent sales of the same model unit that sold for considerably less money ($300,000 to $364,737); T) Respondent erred in using three Comparable Sales that were developer sales susceptible of price manipulation; U) Respondent calculated per square foot adjustments for gross living area differences based on $65 per square foot without support or documentation; V) Respondent failed to indicate that he verified any of the Comparable Sales; H:\FREAB\insignares772.doc 5 FDBPR v. Carlos Manuel Insignares Case No. 2008060772 Administrative Complaint W) Respondent erred in stating that Comparable Sale 3 was a one bedroom/one bath unit with 650 square feet of gross living area, when it was two bedroom/two bath and 1069 square feet per publicly available condominium documents; X) Respondent’s work file contains a FARES printout of Comparable Sale 3 with Respondent's handwritten notation acknowledging an error on bedroom/bathroom count and gross living area. A copy of the FARES printout for Comparable Sale 3 is attached hereto and incorporated herein as Administrative Complaint Exhibit 5; Y) Respondent failed to summarize whether the Subject Property “as improved” was its Highest and Best Use. 10. Attached hereto and incorporated herein as Administrative Complaint Exhibit 6 is an aerial photograph of the Subject Property neighborhood. 11. 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. 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. H\FREAB\insignares772.doc 6 FDBPR v. Carlos Manuel Insignares Case No. 2008060772 Administrative Complaint COUNT TWO Based upon the foregoing, Respondent has violated a standard for the development or communication of a real estate appraisal, specifically the Recordkeeping Section of the Ethics Rule, or other 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 the Conduct Section of the Ethics Rule, or other provision of the Uniform Standards of Professional Appraisal Practice (2006) 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 1-1(b) and (c), or other provision of the Uniform Standards of Professional Appraisal Practice (2006) in violation of Section 475.624(14), Florida Statutes. H:AFREAB\insignares772.doc 7 FDBPR v. Carlos Manuel Insignares Case No. 2008060772 Administrative Complaint 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), or other provision of the Uniform Standards of Professional Appraisal Practice (2006) in violation of Section 475.624(14), Florida Statutes. 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 has violated a standard for the development or communication of a real estate appraisal, specifically Standards Rule 2-2(b) (x), or other provision of the Uniform Standards of Professional Appraisal Practice (2006) in violation of Section 475.624(14), Florida Statutes. COUNT EIGHT Based upon the foregoing, Respondent is guilty of failure to retain records for at least five years of any contracts engaging H:\FREAB\insignares772.doc 8 FDBPR v. Carlos Manuel Insignares Case No. 2008060772 Administrative Complaint the appraiser's services, appraisal reports, and supporting data assembled and formulated by the appraiser in preparing appraisal reports in violation of Section 475.629, Florida Statutes, and, therefore, in violation of Section 475.624(4), 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 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, or any combination of the foregoing which may apply. See Section 475.624, Florida Statutes and Rule 6171-8.002, Florida Administrative Code. The penalties which may be imposed for violation(s) of Chapter 455 of the Florida Statutes, depending upon H:\FREAB\insignares772.doc 9 aw FDBPR v. Carlos Manuel Insignares Case No. 2008060772 Administrative Complaint 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 cf 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. SIGNED this 7M day of _ Tinmet , 2010. CHARLIE LIEM, Interim Secretary Department of Business and Professional Regulation oh 5 Srawion Of heel 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\insignares772.doc 10 FDBPR v. Carlos Manuel Insignares Case No. 2008060772 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\insignares772.doc M1 . . nee a Principal Appraisal Services, inc. : 8502 SW 146 Court Miami, Fl. 33183 (305)388-3356 principalapprais@belisouth.net BANCPLUS 2699 East Oakland Park Bivd Fort Lauderdale, Fl 33306 Re: Property: 1800 Meridian Ave Miami Beach, Fi, 33138-1804 Luis Orlando Caranza File No: 07-344 in accordance with your request, we have appraised the above refereficed property. The report of that appraisal is attached. ‘The purpase of this appraisal is to estimate the market value of the property described in this appraisal report, as improved, in unencumbered fee simple title of ownership. ‘This report is based on a physical analysis of the site and improvements, a locational analysis of the neighborhood and city, and an economic analysis of the market for properties such as the subject. The appraisal was developed and the report was prepared in accordance with the Uniform Standards of Professional Appraisal Practice. ‘The value conclusions reported are as of the effective date stated in the body of the report and contingent upon the certification and fimiting conditions attached. Ithas been a pleasure to assist you. Please do nat hesitate to contact me or any of my staff if we can be of additional service to you. Sincerely, ayn Carlos M“nsignares Si.CertRes.REA RD3876 ADMINISTRATIVE COMPLAINT, EXHIBIT # PEGE _ OF . we eerscere ee ere Extie 20- PAGE : te oS APPRAISER DISCLOSURE STATEMENT ‘Summary Appraisal File No, 97-344 we uted wt Name of Appraiser: Carlos M, Insignares Glass of Certification/Licensure: [| Certified General LR] Certified Residential (2 Licensed Residential Di Temporary [1] Generat = (Licensed Cortification/Licansure Number. = —_ St.Cert.Res. RI 13876 ‘Scope: This Report DX] is within the scope of my Gertification or License is not within the scope of my Certification or License ‘Service Provided By: Disintarested & Unbiased Third Party Interested & Biased Third Party [_} interested Third Party on Contingent Fee Basis This form must be included in conjunction with all appraisal assignments or specialized services performed by a state-certified or state-licensed real estate appraiser. Form DISCLA — “TOTAL for Windows" appraisa! software by & la mode, inc. — 1-B00-ALAMODE ISTRATIVE COMPLAINT OF EXHIBIT. pace Al. APPRAISER DISCLOSURE STATEMENT ‘Summary Appreisal File No, 07-344. Minsk ‘Glass of Certification/icensure: Certified General Certified Residential Licensed Residential Temporay [] General [[] Licensed Certification ioansure Number, SLCer.Res.REARDIO76 Scope: This Report +] is within the scope ot my Certification or License 2 is not within the scope of my Certification or License Service Provided By: B Disinterested & Unbiased Third Party Interested & Biased Third Party Interested Third Party on Contingent Fee Basis This form must be included in conjunction with all appratsal assignments ar specialized services performed by a state-certified or state-licensed real estate appraiser. Form DISCLA — ‘TOTAL tor Windows" anpraisal software by a ii mode, inc. — 1-B00-ALAMODE NISTRATIVE COMPLAINT pace 2 oF EXHIBIT ot pack iL. < APPRAISAL OF REAL PROPERTY LOCATED AT: 1800 Meridian Ave Unit 9 1800 Meridian Condominium int in Common Elements Miami Beach, Fl, 33139-1804 7 FOR: : BANCPLUS 2699 East Oakland Park Bid Fort Lauderdale, Fl 33306 AS OF: 08/1212007 BY: Carlos M. Insignares Principal Appraisal Services inc. 8502 SW 146 Court Miami, Florida 33183 Phone:(305) 388-3356 * Fax(305) 387-8241 principalapprais@bellsouth.net Form GAT — "TOTAL for Windows" anpraisal software by & la mode, inc. — 1-B00-ALAMODE Carlos Insignares (305)388-3398 - . . . ‘Sumi isa! Individual Condominium Unit Appraisal Report: rae ora” The purpose of this rafsal report is to provide the lender/Glent with an accurate, and adequately supported, roe ti a oe i Property Address 1800 Meridian Ave Unt # 9 City Miami Beach Zp Code_ 33139-1804 Borrower Luis Orlando Carenza: Owner of Pubic Record 1800 Meridian LLC fa Maile Description Unit 9 1800 Meridian Condominium Int in Common Elements ‘Assessor's Parcel # 02-3234-007-0150 { Master Folio# ) Tax Year 2006 RE, Tas $ Nol Yet Assesed Project Name 18 Phase # 1 ‘Map Reference 53-42-34 Census Tract 0042.01 Owner [7 Tenant [3 Vacent Special Assessments $ None Noted HORS 264.07 [] per year Dd per month Property Rights Fee Sit Teasehold [Ober (describe) Assi Ty Purchase Transaction (“J Refinance Transaction [7 Other (describe) Lender/Glent_BANCPLUS ‘Address 2699 East Oakland Park Bivd, Fort Lauderdale, F1'33306 Is the sect pet caren fered or al or has R bem Gere or ae ne weve manip’ othe eect cate of is ppl? Eis Yes_[ J No date source(s) used, offering price), and date(s). Data Source: Broker. Subj is presently ut a Contract Date : Current, | Bei aid” (J oid not analyze the contract for sale for the subject purchase transaction. Explain the resuts of the analysis of the contract for sale or why the analysis was not eformed. The transaction is arm: Bath buyer and seller are knowledgeable. Both parties have signed contract and. ‘on sales Contract Price $ 420,000___Date of Contract Current is the propery sole’ the owner of gublc record? Bd ves [_]No Data Source(s) Devel ARES. is there any financial assistance (can charges, sale concessions, gift or downpayment assistance, etc.) to be paid by any party on behalf of the borrower? byes LINO Fy If Yes, report the tatal dolar amount and describe the tems tp be paid, __ None Noted _No concessions, incentives, gift of downpayment noted ‘contract. Note: Race and the racial tion of the neighborhood are not appraisal factors. ‘Neighborhood Characteristics Condominium uni Rousing Tres Condominium Housing| Present Land Use Cocation Urban ‘Suburban [J Rural Prope vats a ain Fisst ining [PRICE ABE | Gne-Unit 35% In Balance Buitt-Up_O<) Over 75% [] 25-75% [) Under 25% [0 Sar $ (000) 24 Unit 1% Grown [J Rapid “BQ Swbe [J Sow | Markating Time a sf son Over mins | 170__Low New |Mutt-Famiy 45 % Neighborhood Boundaries The subje is situated within an overall average neighborhood located | 5.5Mil 72_| Commercial 20% North of 13th Street, South of 20th Street, West of Atlantic Ocean_and East of the Biscayne Bay. 360's Pred. 40's_[Other o8| Neighborhood Description The subject property is within reasonable proximity to major amenities such as: Schools, employment faciities, shopping, ublic transportation, and service facilities. Most homes end condominium projects appeared to be adequately maintained therefore providing ‘average appeal to the market. No unfavorable condltions observed during the course of our fietd inspection. ‘Market Conditions (nchuding support forthe above concusions) A thorough research was performed of the subject's immediate ares. Said research evidenced an active market with no unfavorable conditions nated. The mix of single family, muttifamily, and commercial uses does not adversely affect the subject, /_ Most forms of financing such as Conv.. FHA, Seller, PMM, etc are readily available in the area. Topography Level to Road Grade Size_ Typical of Area Density Avera 1 View ResidentialiAy Specific Zoning Classification 40-RM-160 Zoning Description Mutti-Famiy Medium Der Residential Zoning Compliance Nonconfarming — Do the zoning rguitions permit rebulding to curent density? 5d Yes [] No ‘No Zoning [_|Wiegal (describe) I the highest and bes use of subject propery Improved (or as proposed per plans and specications) the preset use? DQ Yes (TNo_ No, describe Present use is the highest & best use_as im a5 of time of inspection. tities Public Other (describe) Pubic Doers — __Ot site tpravernents ~ Type Public Private Blectrict FPL Water i Strest_Paved As; i Gas CO) None/Typical Santary Sower_ JX] a ____Hisy_None/Typical Li FEMA Special Flood Hazard Area yes [No _FEMA Flooc Zone_AE FEMA Map #_12025C0184J FEMA Map Date_ 3/2/1994 ‘Are the utilities and off-site improvements typical for the market area? a Yes, No_ if No, describe ‘Are there any adverse site conditions or extemal factors (easements, encroachments, environmental conditions, land uses, ett)? Yes B No_If Yes, describe No visible adverse environmental conditions were observed during the normal coarse of the inspection. This is not to be mistaken as = cartfications | ‘of such. Data (S}Tor information FARES/Public Records/M.D.G./MLS/Real Quest Project Detached] Row or Townhause Di Garden _[-} Mi-Rise_[_) Mot-Rise TY otter WA General Description, General Description Subject Phase Troject Completed T Project incomplete # of Stories 2 Stories ‘Exterior Walls CBS __-|# of Units HO __|# of Phases. in # of Planned Phases INA, # of Elevators None Noted | Roof Surtace BUTG « |# of Units Completed 10 | of Units 10__|# of Planned Units IN/A. Bxisteg_[- Proposed [Total Parking 0 | # of Units For Sale of Unis for Sle i= _|# of Unis for Sale INIA Under Gonsiniction | Rato (spaces/rits) 0 of Units Sold ‘10 | of Units Soe 10 | # of Units Soid INIA Year But 1956, Type Of-Site [a of Units Rented fo [¥ of Unis Rented lo__|# of Unts Rerted NA Etectve Age 10; (Guest Parking Off-Site [¥ of Gwmer Occupied Units 10 [1 of Owner Occupied Unis [10 | of Owner ints [N/a Project Pian Principle Residence | Second Home ot Recreational |_| Tenant N/A Is the ules in coro! of the Homeowners’ Association (HOA)? [J Yes BQ) No Management Group - | ] Homeowmers’ Association (| Developer [1 Management Agent - Provide name o! management company. 1800 Meridian LLC Does any Sigi eiy (he same individual, investor proup. corporation, et.) own ror Han 10% ofthe total units nthe project?” (ul Ves OX[No__ i Yes, Descrite NA Was the project created by the conversion of existing bullding(s) into a condominium? ——<) Yes_ [| No_f Yes. describe the original use and date of corversion. Rental apartments to condo_Conversion:04/07/2007. ‘Are the units, common elements, and recreation faciities complete (inckxding any planned rehablitation tor @ condominium conversion)? Rl ves ‘No_t No, describe ‘All common elements and recreation facilities are complete and have been well maintained throughout the years. Tg there any commercial space inthe project?” [| Yes D>) No_I Yes, describe and indicate the overali percentage of the commercial space. No commercial space available predominant owner occupied Freddie Mac Form 465 March 2005 Page 1 of 6 Fannie Mae Form 1073 March 2005 Form 1073 — "TOTAL for Windows" appraisal software by a a mode, inc. — 1-BO0-ALAMODE EXHIBIT. PAGE individual Condominium Unit Appraisal Report res oa eee Fe] Describe the common elements and recreational facies. Common Elements J rs any common comers asd ow by th Honowners Associaton? [1 Yes] No_ Yes, desorbe ie eal ams and options 1s the project ‘10 8 ground rent? () Yes_B< No. psec eset sande? [tes MoH. SA _____ pt eb me ee) A i (describe terms and conditions) ‘Are the parking facies adequate for the project size and type? Bd Yes_[_1 No_I No, describe and comment on the effect on value and oft-siteparking adequate for owners/tenants & adequate parking for quest. [___CurStoage m Refrigerator Ret/Frar |X # of Levels One Level iange/Oven_Rng/Ovn [| Garage [} Covered [7] Open | | Heating Type RIC__Fusl Elec. | x Serta it i tial AC Bat WansEC. The/Good {1 Other Fished sea sore ya oS py een rE ni ssp nee Pelves_(]No No, ace nd can ory to er pros mara re. i id. Conform tothe neghboriood funclonal uy, sve, condtion, use, constuction, a=)?” BX) Yes C]No_ fi No, describe is of simiiar style, condition & functional utilities to other properties within the subject's _project & immediate market area and COMPARABLE SALE #2 [No Past Sales Or Transfers |No Sales Or Transfers No Sales Or Transfers [within 3 years within 1 [within 1 year FARES/Real Q/M.D.GJP.R. |FARES/Real Q/V.D.GJP.R. Freddie Mac Form 465 March 2005 Page 2 0f6 Fannie Mae Form 1073 March 2005 Form 1073— "TOTAL for Windows" appreisal software by a la mode, inc. — 1-BO0-ALAMODE Individual Condominium Unit Appraisal Report ree ore ‘There are 504 comparable properties curently offered for sale ithe subject neighboraod ranging in price trom § 175,000 to$ 48,500,000 There are___ 8. ie sales in the subject ne within the past twelve morths ranging in sale price from $ 95,000. to$_ 5,800,000 FEATURE SUBJECT COMPARABLE SALE # 1 ‘COMPARABLE SALE # 2 COMPARABLE SALE # 3 ‘Aaiess and 1800 Meridian Ave, #9 1745 James Ave #210 1340 Drexel Avenue #401 7500 Pennsylvania #34 Unt'# Miami Beach, F.33139-4512_|Miami Beach, Fi 33130-4512 __|Miami Beach, Fi. 33139-4512 _|Miami Fi, 33139-1804 Project Name and 1800 Meridian ‘The Sanctuary South Beach —_| The Palms Residence Harriett Court Condo Phase 1 Condo, 4 Condo, 1 1 Proximity to Subject [0.40 miles (0.64 miles (0.42 mi Sale Price Ss 420,000) is 435,000] is 402,500 is 397,000 Sale Price/Gross Liv. Area |S 599.1489. t|§ 870.0059. th § 548.3789. fl $__ 610.7780. f Data Source(s FARES/Pub.Rec/M.D.G/Resl Q |FARES/Public Recoris/M.D.G._ |FARES/Public Records/M.D.G. Vertication Source(s) Ext. ViewINLS#M1026583/ZKiow | Exterior ViewRea! Quest [Exterior View/Real Quest VALUE ADJUSTMENTS DESCRIPTION | DESCRIPTION | +{)$Adustment | DESCRIPTION | +()$ Adjustment | DESCRIPTION | +() § Adjustment ‘Sales oF Financing Conv.Mtg. Conv.Mig. “ [Conv.Mig. Concessions None Noted Date of Sale/Time (03/2007 Location Urbans UrbanvAverage LeaseholifFee Simple Fee Simple Fee Simpie HOA Mo. Assessment [264.07 [Simiar ‘Common Elements [See Front [Similiar ‘and Res. Facities page of Rept __|Project Floor Location ‘1st Figor a View RsdntvAverage |Rsdnt/Average Des [Condo/Typical_|Condo/Typical & of Construction [CBS/Good __|CBS/Good Actual Age 1956/4 vrs-Cnvr, 1951/46 yrs-Cnu ‘Condition [Good/Rmid _|Good/Rmie ‘Above Grade “ora [Barms.| Baths | Total [adrs.| Baths bq Room Count 4 4 4 4. 4 4 E Gross Living Area 70% 89. ft 500 99. tt f=} Basement & Finished No Basement Rooms Below Grade None Noted _!None Noted Fonctionat Ut [Adequate [Adequate Heating/Cooling [Centrat AC |Central AIC Efficient ems Standard Standard, Garage/Carport |Off-Site Parking | Off-Site Parking PorciyPatio/Deck None Noted [Balcony . ‘Amenities ‘Standard [Superior ‘ Fumished Net Adj T+ &W- Is 2900] [] + -~_J8 3,300] ‘Adjusted Sale Price Na Ad. 07% Net Ag. ¥ Net Ad, 08 % of es Gross Adj. 6.7_%IS 432,100|Gross Adi. 3/8 402,500]6r0ss Adj._0.8_%|$ 400,300) ‘Summary of Sales Compatison Approach The above sales are the most recent corny ‘within ject area, Comparable sales #1, #2 & #3 are located within the nearby comy rojects which were also condo-conversion and are similar in age, location, condition & marketability. This is do to the tack sales closed or sales within ject building, this does not adversiey affect the subject its mi in any way. The sales have been adjusted for any differences and ere considered good value indicators for the subjest 2 Equal em; fn placed on all ble sales. —| Indicated Valve by Seles Comparison. $420,000 DNCOME APPROACH TO VALUE (not required by Fannie Mae) Estimated Monthly Maret Rent § NA X Gross Rent Muitpfier N/A =f Indicated Value by tneorme Summary of income Anproach (including suppor for market rent and GRM) N/A Indicated Vaiue by: Sales Comparison Approach $420,000 Income Approach {if developed) $ the market data approgch was anplicable to this report which the action of both b liars in the subject market place. The income approach is not applicable. 4 Pe] Tis anpraisalis made P< “as iS", |] subject i compleion per plans end specifications on the basis of & hypothetical condiion that the improvements Have been completed, [} subject to the folowing repairs or atertions on the basis of a hypothetical condition thatthe repairs or aterations have baan complted, or (_) subject to the following required inspection based on the extraordinary assurmtion thatthe condition or deficiency does not require aeration or repair: Value estimate is subject to the attached statement of limiting conditions & all addendum attached, See front yr any other condition. Subject to completion of con Based ona comple visual inspection ofthe era: and exer areas alte sbi! proper. defined scope of wo, saison! of sumptions and Uniting ty, ‘conditions, and appraiser's certification, my (our) opinion of the market value, as Gefined, of he ‘real property that is this seport is $__ 420.000 as of 08/13/2007. which is the date of in: mn and the effective date of this il. Freddie Mac Form 485 March 2005 Page 3 of 6 Fannie Mae Form 1073 March 2005 Form 1073 —*TOTAL tor Windows" appraisal software by a la mode, inc. — 1-800-ALAMODE ar ANE pia hy a Ut EXHIBIT el PAGE lo _ OF EXrilssi PAGE wile ‘Summary Appraisal Fie # 07-344 Individual Condominium Unit Appraisal Report This report form is designed to report an appraisal of a unit in a condominium project or a condominium unit in a planned unit hear ielt (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 value, 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 also not permitted. However, additional certifications that do fot constitute material alterations to this appraisal report, such as those required by law or those related to the appraiser's continuing education or 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, including 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 fom reliable public and/or private sources, and (6) report his or her analysis, opinions, and conclusions in this appraisal rept INTENDED USE: The intended use of this appraisal report is for the lender/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 2 competitive and open market under all Conditions requisite to 2 fair sale, the buyer and seller, each acting prudently, knowledgeably and assuring 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 tile from seller to buyer under condifions whereby: (1) buyer and seller are typically motivated; (2) both parties are well informed or well advised, and each acting in what he or she considers his or her own best interest; (3) @ reasonabie 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 sales 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 those costs which are normally paid by sellers as a result of tradition or law in a market area; these costs are reagily identifiable since the seller pays these costs in virtually all sales transactions. Special or creative financing adjustments can be made to the comparable property by comparisons to financing terms offered by a third party institutional jender that is not already involved in the property or transaction. Any adjustment should not be calculated on a mechanical dollar for dallar cost of the financing or concession but the dollar amount of any adjustment should approximate the market's reaction to the financing or concessions based on the appraiser's judgment. STATEMENT OF ASSUMPTIONS AND LIMITING CONDITIONS: The appraiser's certification in this report is ‘subject to the foliowing assumptions and limiting conditions: 1. The appraiser will not be responsible for matters of a legal nature that affect sither 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 dimenstons of the improvements. ‘The sketch is inciuded 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 jaw. 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 wil! 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 compietion, repairs, or alterations of the subject property will be performed in a professional manner. Freddie Mac Form 465 March 2005 Page 4 of 6 Fannie Mae Form 1073 March 2005 Form 1073 — ‘TOTAL tor Windows" appraisal sottware by a la mode, nc. — 1-800-ALAMODE ADMINISTRATIVE COMPLAINT EXHIBIT # Pa Individual Condominium Unit Appraisal Report APPRAISER'S CERTIFICATION: The Appraiser certifies and agrees that: 1. | have, at a minimum, developed and reported this appraisal in accordance with the scope of work requirements stated in this appraisal report. 2. 1 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 physica! 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 promulgated 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. t have adequate comparable market data to 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, uniess 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 focationally, physically, and functionally the most similar to the subject property. 8. | have not used comparable sales that were the result of combining a land sale 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. | have knowledge and experience in appraising this type of property in this market area. 12. | 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. | obtained the information, estimates, and opinions furnished by other parties and expressed in this appraisal report from reliable sources that | believe to be true and ct 14. | have taken into consideration the tactors 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. | 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 knowiedge, all Statements and information in this appratsal report are true and correct. 46. | stated in this appraisal report my own personal, unbiased, and professional analysis, opinions, and conclusions, which ‘are subject only to the assumptions and limitiag 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 blas with respect to the participants in the transaction. | did not base, sither partially or completely, 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 other basis prohibited by law. 48. 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 anatysis 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 resuit or occurrence of a specific subsequent event (such as approval of a pending mortgage loan application). 19. | personally prepared ali conclusions and opinions about the real estate that were set forth in this appraisal report. If 1 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 appraisai report. | certify that any individual so mamad is qualified to pertorm the tasks. | have not authorized anyone to make a chang any item in this appraisal report; therefore, any change made to this appraisal is unauthorized and | will take no responsibility for iL 20. | identified the lender/client in this appraisal report who is the individual, organization, or agent for the organization that ordered and will receive this appraisal report td Freddie Mac Form 465 March 2005 Page 5 of 6 Fannie Mae Form 1073 March 2005 Form 1073 — "TOTAL for Windows" anpraisal sottware by a la mode, inc. — 1-B00-ALAMODE STRATIV pen ee mmr mcsecenes EXHIBIT, PAGE E COMPLAINT ‘Summary Appraisal Flic # 07-344 Individual Condominium Unit Appraisal Repo 21. The lender/client may disclose or distribute this appraisal report to: the borrower, another tender at the request of the borrower, the mortgagee or its successors and assigns, morigagt urers; goverment 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 disclosure 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, 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 2 copy or representation of my signature, the appraisal report shall be as effective, enforceable and valid as Hf @ 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 resutt in civil ilability and/or criminal penalties including, but not limited to, fine or imprisonment or both under the provisions of Title 18, United States Code, Section 1001, et seq., or similar state laws. SUPERVISORY APPRAISER’S CERTIFICATION: The Supervisory Appraiser certifies and agrees that: 1. | 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 ts acceptable to perform this appraisal 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 Teport 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 (exciuding 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. APPRAISER SUPERVISORY APPRAISER (ONLY IF REQUIRED) Signature Signature Name Carlos M. mee Name N/A Company Name Principal Appraisal Services inc. Company Name Company Address 8502 SW 146 Court, Company Address. Miami, FI, 33183 Telephone Number (305) 388-3356 Telephone Number N/A Email Address _principalapprais@belisouth net Email Address Date of Signature and Report 08/14/2007 Date of Signature N/A Effective Date of Appraisal 08/13/2007 * State Certification # State Certification # St.Cert Res. REA RD3976 or State License # N/A or State License # State N/ or Other = N/A State # N/A Expiration Date of Certification or License State FL Expiration Date of Certification or License 11/30/2008. SUBJECT PROPERTY (1 Did not inspect subject property ADDRESS OF PROPERTY APPRAISED 2 Did inspect exterior of subject property from street 1800 Meridian Ava, #Q Date of Inspection Miami Beach, Fl. 33139-1804 © Did inspect interior and exterior of subject property APPRAISED VALUE OF SUBJECT PROPERTY $ 420,000 Date of Inspection LENDER/CLIENT Name COMPARABLE SALES Company Name BANCPLUS Did not inspect exterior of comparabie sales from street Company Address ° 2609 East Oakland Park Blvd, Fon Lauderdale, _C Did inspect exterior af comparable sales from street Date of Inspection F133306 Email Address Freddie Mac Form 465 March 2005 Page 6 of 6 Fannie Mae Form 1073 March 2005 Form 1073 — “TOTAL for Windows" appraisai software by a la mode, inc. — 1-800-ALAMODE EXHIBIT PAGE my ae —_—— : Supplemental Addendum Fle No, 07-344 Borowe/Gien Luis Orlando Caranza Property Address 1800 Meridian Ave. Miami Beach County Miami Dade L Zp Cone 33139-1804 Lender BANCPLUS. + Supplemental Addendum : ‘SCOPE OF THE APPRAISAL: ‘The scope of the appraisal Is to analyze market conditions as of the effective date of the appraisal and to consider all approaches to value in order to estimate the subject's market value, as defined, for its highest and best use. FUNCTION OF THE APPRAISAL: ‘The function of this appraisal is to provide an estimate of the current market value, as defined, for financing and/or decision making by the client, Contents of this report are of a confidential nature. information contained herein wil! not be disclosed to anyone other than: (A) The client and those persons specifically authorized by the client to receive such information; (B) Third par when and to the extent that the appraiser is legally required to do so by statute, ordinance, or order of a Florida Court; and {C) The duly authorized commute of the Appraisal institute (Peer Review). ‘The appraisal assignment was prepared on an independent basis and not based on a requested minimum valuation, a specific valuation, or the approval of a loan. ‘My analysis, opinions, and conclusions were developed and this report has been prepared in conformity with the Uniform ‘Standards of Professional Practice and in accordance with the reguistions deveioped by the lender's Federal Regulatory Agency as required by FIRREA. The Departure Provision was not utilized. ‘The appraiser has no knowledge of the existence of any hazard existing on or near the subject property or any site within the vicinity unless otherwise stated in the appraisal. Unless otherwise noted specifically in the appraisal, no personel property is included in the market evaluation. In accordance with the competency provision in USPAP, the appraisal certifies that his education, experience and knowiedge is sufficient to appraise the type of property being appraised and that no appraiser has provided significant professional assistance to the person inspecting the subject property and in the completion of the analysis other than the co-signing appraiser or the appraiser's employer. Password protected encrypted electronic signatures were used In this report. Original signatures are on file. ‘The enclosed is a summary report. Comment On Electronic Signature: ‘The softwear utilized by Appraiser fo generate the appraisal protects signature security by means of a digital signature security feature for each appraiser signing the report .Each appraiser maintains sole control of their related signature through @ password, hardwear device, or other means, Appraiser is fully responsible for the integrity and authenticity of data and signatures transmitted electronically Adobe's Distiller or equivalent is utilized by Appraiser to transmitt this encrypted pdf. formatted appraisal. Signature of Appraiser of this report is valid. Form TADD — "TOTAL tar Windows" appraisal software ty a la mode, inc, — 1-B00-ALAMODE ADMINISTRATIVE COMPLAINT SUMMARY OF SALIENT FEATURES 1800 Meridian Ave ‘Unit 9 1800 Meridian Condominium Int in Common Elements Miami Beach Miami Dade FL 33139-1804 0042.01 Luis Orlando Caranza BANCPLUS ‘Size (Square Feet) 701 Price per Square Foot $599.14 Location Urban/Average 1986/41 yrs-Cnvr Good/Rmid Carlos M. Insignares Date of Appraised Value 08/13/2007 Final Estimate of Vaiue $ 420,000 Form SSD — *TOTAL for Windows* appraisal saftware by fa mode, inc. — 1-B00-ALAMODE ATE COMPLAINT EXHIBIT pace lO MULTI-PURPOSE SUPPLEMENTAL ADDENDUM FOR FEDERALLY RELATED TRANSACTIONS Savas nsignares (05}388-3398 BorowerCient_ Luis Orlando Caranza Property Address 1800 Meridian Ave City Miami Beach. County Miami Dage Lender BANCPLUS. ‘This Mut- Purpose Supplementa! Addendum for Fderally Related Transactions was designed to provide the appraiser with a convenient way to camply with the caret appraisal standards and requirements of the Faderal Deposit Insurance Corporation (FOAC), the Office ot the Comptroller of Currency (OCC), The Office of Thritt ‘Supervision {0TS), the Resolution Trust Corporation (RTC), and the Federal Reserve, ‘This Malti-Purpose Supplemantal Addendum is for use with any appraisal. Qaly those statements which have been checkad by the appraiser apply to the property being appraised. & PURPOSE & FUNCTION OF APPRAISAL ‘The purpose af the appraisal is to estimate the market value of the subject property as defined herein. The function of the appralsal is to assist the above-named ‘Lender in evaluating the subject property for lending purposes. This is a federally related transaction, EXTENT OF APPRAISAL PROCESS ER) The appraisal is based on the information gathered by the appraiser from public records, other Identified sources, inspection of the subject property and neighborhood, and selection of comparable sales within the subject market area. The original source of the comparables is shown In the Date Source section of the market grid along with the source of confirmation, if avaflable. The original source is presented first. The sources and data are considered rafable. ‘When conflicting information was provided, the source deemed most reiable has been used. Data believed tobe unrelable was not included in the report nor used as a basis forthe value conchusion, ‘The Reproduction Cost is based an _N/A, suppiemerted by the appraiser's nowiedge ofthe focal market. DX) Physical depreciation is based on the estimated elective age of the subject property. Functional and/or extemal depreciation, # pase, is specticlly addressed inthe anpraisal report or other adden. In estimating the site value, the appraser has reled on personal knowledge of the local market. This ‘oovladge is besed on prior and/or current analysis o ste sales and/or abstraction of site values tram sales of improved properties, 52) The subject property is located in an area of primasly owner-occupied single family residences and the Income Approach is not considered to be meaningful. For this reason, the income Approach wes not used. (OTe Estimated Market Rent and Gross Rent Muitipferuilized inthe Income Approach are based on the appraiser's knowisdge ofthe subject market area. “The rental knowledge is based on prior and/or cure rental rate surveys of residential properties. The Gross Rent Mutiplier is based on prior and/or current analysis of prices and market rates for residential properties. (G For income producing properties, actual rents, vacancies and expenses have been reported and analyzed. They have been used to proect future res, vacancies and expenses. SUBJECT PROPERTY OFFERING INFORMATION According tp _Contract/Broker the subject propery: banat een offered tor salen the past () 30 days [11 year [2] 3 years. (& iccumenty cttaret forsale tor$ 420,000 . (was offered tor sate within the past: [_] 30 days CJ 1 year C2 ayears tor $ Z fering information was consitered in te Fina reconcliation af value. ER tering intration was not consiered in the inal cancion ot value, 7 ering information was not avalabi. The reasons for unavaibilty and the steps taken by the appraiser are cxplaine ter in this addendum. {SALES HISTORY OF SUBJECT PROPERTY According tt _Public Records. ‘the subject property: } Hasnottranstered (7 in the past twelve months, [in the past thirty-six months. () in the past 5 years. CO astranstered 1 inthe past tweive months. (1 in the past thity-six months. (] in the past 5 years. C2 Al prior sales which have occured in the past are sted tlow and reconciled! othe appraised value, ether inthe body ofthe report rin the addenda. Date Sales Price Bocument # Soler Buyer (FEMA FLOOD HAZARD DATA ([) Subject property is not located in a FEMA Special Flood Hazard Area. BG Subject propery ts located in a FEMA Special Flood Hazard Area. FEMA Map/Panel # Name of Community 1800 Meridian Condo, Zone ‘Map Date AE 1202500184) 32/1804 (2) The community des not particinate in the Nationa! Flood Insurance Program. ER) The community des participate inthe National Flood Insurance Program. DR) tis covered by a megulae program. 7 eis covered by an emeroency program. et Page 1 of 2 Form MPA3 — "TOTAL for Windows" appraisal software by a la made, inc. — 1-800-ALAMODE The subject propery is surety not under contact. (C1 The coniract and/or escrow instructions were not available for review, The unavaitbiity of the contract \s explained teter In the addenda section. LR) The contract and/or escrow instructions were reviewed, The following summarizes the contract Contract Date Amendment Date Contract Price Seller Current Unknown 420,000 4800 Meridian LLC ‘The contract indicated that personal property was not included in the sale, ‘The contract indicated that personal property was included. It consisted of | _N/A. ‘Estimated contributory value is $ Personal property was not included inthe nal vate estimate. (Persona propery was inched inthe fina! value estimate. DX) The contract indicated no financing concessions or other incentives. (21 The contract indicated the folowing concessions or incentives: NIA LK it concessions or incentives exist, the comparables were checked for similar concessions and appropriate adjustments were made, if applicable, 80 ‘hat the final value conciusion is in compliance with the Market Value defined herein. & MARKET OVERVIEW tnchide an explanation of current market condtions and trends, 3:6 ____ months is considered a reasonable marketing psrioc for the subject property based on Current trends in the subject's immediate market area. . ADDITIONAL CERTIFICATION ‘The Appralsercerties and agrees that (1) The analyses, opinions and conclusions were developed, and this renort was prepared, in conformity with the Uniform Standards of Protessionat ‘Appraisal Practice (‘USPAP*), except that the Departure Provision of the USPAP does nat apply. (2) Their compensation is not contingent upon the reporting of predetermined value or direction in vaiue that favors the cause of the cfent, the amount ‘of the value estimate, the attainment of a stipuiated result, or the occurrence of @ subsequent evert. (8) This appraisal assignment was not based on a requested minimum valuation, a spectic valuation, or the approval of a joan. [X) ADDITIONAL (ENVIRONMENTAL) LIMITING CONDITIONS ‘The vaue estimated is based on the assumption thatthe property is not negatively affected by the existence of hazardous substances or detrimental environment! conditions unless otherwise slated inthis repo The appralser is nat an expert in the identification of tazardous substances ar detimertal envitonmental conditions. The appraiser's routine inspection of and inquies about the subject property did nat develop any information tat indicated any apparent significant hazardous substances or detrimental evronmenta conions which would aflec the property negatively unless otherwise stat inthis repo. tis possible that tests and inspections made by 2 quale hazardous substance and environmental expert would reveal te existence of hazardous substances or detrimental environmental conditions on or around the property that would negatively affact its value. 1 ADDITIONAL COMMENTS This is a summary appraisal report. (J _CO-SIGNING APPRAISI NATURE & LICENSE/CERTIFICATION i _APPRAISER'S SIGNATURE & LICENSE/CERTIFICATION Agprase’s Signature Co’ Effective Date 08/12/2007. ate Prepared 08/14/2007. Appraisers Name (prt) Carlos M.Insignares Phone (905) 388-3356 ‘Stale FL (LJ Ucense DX Centtication # St.Cer.Res.REARD3976__ TxI# NA (J __CO-SIGNING APPRAISER’S CERTIFICATION (The co-signing appraiser has personally inspected the subject property, bath inside and out, and has made an exterior inspection of all comparable sales listed in the report. The report was prepared by the appraiser under direct supervision of the co-signing appraiser. The co-signing appraiser accepts responsiblity forthe contents ofthe report ncucing the value conclusions and the Kiting condtons, and canfs thatthe certiicatons apply {uly to the co-signing appraiser. [2] The co-signing appraiser bas not personaly inspected the inrir of the subject property and: £2) nas notinsperied the exerior ofthe subject property and all comparable sales listed in the report. 2) has inspected the exterior ofthe subject property and ali comparable sales listed in the report. G “The report was prapared by the appraiser under direct supervision of the co-signing appraiser. The co-signing appraiser accents responsiblity tor the contenis of the report, including the vale conclusions and the Siting conditions, and confirms tha he cerications apply fuly tothe co-signing appraise: with the exception of the certiicationregarting physical inspections. The above describes the vel of inspection performed by the co-signing appraiser. 2] The co-signing appratsers level of inspection, invoWement in the appralsal process and cerfcation are covered elsewhere Inthe addenda section of this appraisal, Cosi eoebe Signature fective Date N/A Date Prepared N/A Co-Signing Appraiser’s Name (prn)_N/A. Phone # N/A State NA Ci teense ~~~] certtication NVA Txde NA Page 2 of 2 Form MPA3 — "TOTAL for Windows" gnpraisat software by a la mode, inc, —- 1-800-ALAMODE Building Sketch (Page - 1) B Tus Grande Carenza 1800 Meridian Ave Giy_Miami Beach County Miami Dade Sete Fi Zn Code 33139-1804 ender BANCPLUS AREA CALCULATIONS SUMMARY ~ LIVING AREA BREAKDOWN Code Description Size Nat Totals Gikl—-‘Fizet Floor y 700.80 700.68 TOTAL LIVABLE (rounded) 701 2 Calculations Total (rounded) Form SKT.BldSki — "TOTAL for Windows" appraisal software by a ‘a mode, Inc. — 1-800-ALAMODE ADMINISTRATIVE COMPLAINT. EXHIBIT. *t pace JY OF EXHius PAGE = SUMMARY OF SALIENT FEATURES 4800 Meridian Ave Unit 9 1800 Meridian Condominium Int in Common Elements Miami Beach Miami Dade FL 33139-1804 Condition Total Rooms ‘Bedrooms Baths Appraiser Carlos M. Insignares Date of Appraised Value 08/13/2007 Form SSD — “TOTAL for Windows" appraisal software by a la modi, inc. — 1-800-ALAMODE OF ITT Ly PAGE Othe Subject Photo Page Luis Oriando Caranza Property Address 1800 Meridian Ave, Subject Front 1800 Meridian Ave, #9 Sales Price 420,000 (Gross Living Area 701 Total Rooms 4 Total Bedrooms 1 ‘Total Bathrooms 1 : Location UrbanvAverage View RedntvAverage: Site Condo/Average Ousliy CBS/Good Me 1956/41 yre-Crvr Subject Rear Subject Street Form PICPXSR — “TOTAL for Windows" appralsat software by a la mode, inc. — 1-800-ALAMODE Comparable Photo Page [Borrower/Client_Luis Oriando Caranza Property Address 1800 Meridian Ave City Miami Beach Gomty Miami Dade Site Fl. Zp Cote 33139-1804 BANCPLUS. Comparable 1 1745 James Ave,#210 Prox to Subject 0.40 miles Sale Price 435,000 Grass Living Area 500 Totat Rooms 4 Total Bedrooms = 1 Tota Bathrooms 1 Location UrbarvAverege View RednivAverage Site ‘Condo/Average Ouzslty CBS/Good age 1951/45yrs-Crvr oe Comparable 2 1340 Drexel Avenue #401 Prox to Subject 0.64 mites Sale Price 402,500 Gross Living Arex 734 , TotalRooms = 4 ! Tota Bedrooms 1 Total Bathwooms 1 Location Urban/Average View RsdntvAverage Site Condo/Average Ouslty CBS/Good Age 1949/58yrs-Crv ’ Comparable 3 4500 Pennsylvania #34 Prox, to Subject (0.42 miles Sale Price 387,000 Gross Ling Arez 650 Total Rooms 4 Total Bedrooms 1 ‘otal Bathrooms «4 + Location Urba/Average View RedntvAverage She Condo/Average Oualty CBSIGood Age 1849/5Byrs-Crvr Form PICPIXCR — “TOTAL for Windows” appraisal software by a la mode, inc, — 1-800-ALAMODE | Location Map jie! Luis Orlando Caranza 1800 Meridian Ave. Ciny_Miarni Beach Cou, Miemi Dade FL 33138-1804 BANCPLUS. toa Pay i © am ior iS i i _™ = ay eee “a, é Pa re / oe 2 i. os , 4 row mess - “ey i wef FE i ra attantse = Lea cient cat Form MAP.LOC — “TOTAL for Windows" appraisal software by a la made, inc. — 1-B00-ALAMODE STAATIVE COMPLAINT EXHIBIT. : PAGE STATE OF FLORIDA DEPARTMENT OF BUBINESS AND PROPESSICNAL REGULATION FLORIDA REAL ESTATE APPRAISAL BD SEOQMLoso91801516 heron Si : 05/16/2005 logaosez08 IRD3976. The CERTIFIED RESIDENTIAL APPRAISER | Named below IS CERTIFIED Under the provisiona of Chapter 475 PS. | Expiration data: NOV 30, 2000 i INSIGNARES, CAKLOY MANUEL 8502 SW 146 cr MIAMI vL 33183 EB BUSH SIMONE MARSTILLER GOVERNOR DISPLAY.AS REQUIRED BY LAW... CRETARY = Form SCA — “TOTAL for Windows" appraisal sottware by a la mode, inc. — 1-B00-ALAMODE a COMPLAINT. EXHIBIT. PAGE \O Five Star Appraisers E&O Program 550 W. Van Buren, Suite 1500 * Chicago. IL 60607 (800)497-4644 * Fax: (866)720-5003 PROOF OF COVERAGE 1. Name and Address of Insured: Binding Authority, BOS95EL0421962006 Carlos M. Insignares dba Principal Appraisal Services 8502 SW 146th Court MIAMI FL 33483 2. Insurer, Underwriters at Lloyds Raling: AM Bast: A (Excellent!) S&P: A(Positive) 3. Coverage: Errors and Omissions 4, PolicyNumber, O7REALPF-00333 a 5, Limits of Liability: $1,000,000 Each Claim, including Claims Expenses $1,000,000 ‘Annual Aggregate, including Claims Expenses 6. Dedur $500 Each Claim, including Claims Expenses 7. Annual Policy Premium: $ $920.00 Gross Premium $ $9.55 FHCEN s $35,00 Processing Fee § 5 s $47.75. Surplus Lines Tax FL $.96 Stamping Fee Fi $1,073.26 Total Premium 8. Policy Period 04/29/07 to (4/29/08 42:01 a.m, standard lime at the jocation stated above. 8. Retroactive Date: 04/29/2005 Definition: Retroactive Date (Prior Acts Coverage) - This is the date from which the Insured warrants that CONTINUOUS" Professional Liability coverage has existed without interruption, Appraisers obtaining this insurance for the FIRST timaor renewing insurance after 2 lapse in coverage will have a retroactive date the same as the policy inception dale. A retroaclive date indicates how far back in lime this insurance will provide coverage for prior acts. Any clzims made for an appraisal done prior to the retroactive date will be exciuded under this policy. - 10, Based On: 1.09 Appraiser Carlos M. Insignares Coverage is subject in all respects to terms, conditions an limitations of the masler policy issued by Underwriters at Lloyds, Policy Number MPREA-1007, unless otherwise specified. 41. Coverage is subject in all respecis lo the terms, conditions and limitations of the policy issued by Underwriters at Uoyds, unless otherwise specified. Date of issuance: April 23, 2007 Kevin M. Ottley Authorized Represemtative PROOF Form SCA— “TOTAL for Windows" appraisal software by a la mode, inc. — 1-B00-ALAMODE Carlos insignares (205)388-3398 Address 1800 Meridian Ave. City ‘Miami Beach County Miami Dade ‘State Fi. Zig Code 33139-1804 LenderCient __ BANCPLUS. APPRAISAL AND REPORT IDENTIFICATION This Appratsa! Report is one ot the following types: (Self Contained (A writen report prepared under Standards Rule 2-2(a) , persuant tothe Scope of Work, 2s disclosed elsewhere inthis repor.) & summary (A wrtten report prepared under Standards Rule 2-2(b) parsuant to the Scope of Work, as disclosed elsewhere in this report.) (i Restricted Use (A written report prepared under Standards Ruie 2-2(c) , persuant to the Scope of Work, as disclased elsewhere in this report, restricted to the stated Intended use by the specified client or intanded user.) Comments on Standards Rule 2-3 | petty that, to the best of my knowledge and belief: ~The statements of fact contained in this report are tue and correct. +The reported analyses, opinions, and conclusions are fied only bythe reported assumptions and imiing conditions and are my personal, impartial, and unbiased nrotessional analyses, opinions, and conclusions, + Thave no forthe speci) present or prospective intrest inthe pronerty that isthe subject ofthis report and no (or the speciied) personal interest with respect to te parties invawved. + have no bias with respect to the property that isthe subject of this report or the parties invoWed with this assignment. + My engagement in his assignment was not contingent upon devetoping or reporting predetermined results, - My compensation tor completing this assignmert is nat contingent upon the development or renorting ofa predetermined value or direction in value that favors the couse ‘ofthe lent, the amount ofthe valu opinion, the attainment of a stipulated resut, or the occurrence of @ subsequent vert direct related tothe intanded use ofthis appraisal. + My analyses, opinions and conclusions were developed and ths report has been prepared, in conformity wit the Uniform Standards of Profesional Appraisal Practice. + Thave for have not} made @ persona inspection ofthe propery that is the subjact of this report. - No one provided significant real property appraisal assistance tothe person signing this catfiction. (there are exceptions, the name of each incividual providing significant real property appraisal assistance ls stated elsewhere In this report.) Comments on Appraisal and Report Identification Note any USPAP related issues requiring disclosure and any State mandated requirements: This report is of a condo ically not used as uci es therefore imited rental inform: available. Due to tack of rental information deriving at an accurate GRM is not possible. The income approach & cost are not applicable | APPRAISER: SUPERVISORY APPRAISER (only If required): ‘Signature: pee Signature: Name: Carlos M. Insigt Ss Name: N/A Date Signed: 08/14/2007 Oete Signed: N/A. State Certficaton #: St.Cert. Res. REA RD3976 State Certification #: or State License #: or Site License #: N/A State: FL - State: NV Expiration Date of Certficalion or Lense: 14/30/2008 Expiration Date of Cartficabon or License: Supervisory Appratser inspection of Subject Property: Effective Date ot Appraisat 08/14/2007 [7] bid Not) Esterior-only from street [2 Interior and Exterior Form IDD6 — “TOTAL for Windows" appraisal software by a la mode, inc. — 1-B00-ALAMODE ee OF EXHIBIT. m=" PAGE Casias insignares (305)388-3398 FIRREA / USPAP ADDENDUM Borrower Luis Oriando Caranza File No._07-344 Property Address 1800 Meridian Ave City Miami Beach County MiamiDade Sule Fi Zin Gode_33139-1804 Lender/Chent_ __ BANCPLUS- Purpose “The purpose of this appraisel report is to estimate the most probable price of the Subjedtrenuiste tthe described definition of value,for the purpose of assisting the client/lender in supporting the collateral portion of ‘The scope of the appraisal is described in the Multipurpose Supplemental Addendum attached and made part of this repo intended Use / Intended User use Of this appraisal is for lending purposes only. Personal non-reaity items if any have been described in the Multipurpose Supplemental Addendum attached. Additional Comments “This appraisal report is Subject fo all attached addends, including limiting conditions form 1004b(03/05),USPAP identification Mutiourpose plemental Addendum ,and any additiona’ comment addenda. All attachments such as Qualifications, buiiding sketches, maps picture report forms gre part of the appraisal report. Removal of alterations of any of the attachments can only be jing appraiser it removal or altemations of any portion ofthis report is made by anyone other than the signing appraiser the report va be oval Certitication Supplement 1. This appraisal assignment was not based on: a requested minimum valuation, & specific valuation, or an approval at 2 loan. 2. My compensation is not contingent upon the reporting of a predetermined value or direction in value tral favors the cause of the client, the amount of te value ‘estimate, the attainenent of a stipulated result or the occurrence of a subsequent event. ‘This report is subject to all attached addendums.This report is not valid without all attached addenda. , Superyisory Appraiser: \. Appraiser: NIA ‘Signed Date: 08/14/2607, ‘Signed Date: Certification or License #: St.Cert.Res.REA RD3976 Certification or License #: NIA Certification or License State: FI Empires: 11/30/2008. Certification or License State: N/A res: Effective Date of Appraisai: 08/12/2007 Inspection of Subject: {) Did Not ‘Exterior Only Interior and Exterior Form FUA LG — ‘TOTAL for Windows" appraisal software by a la mode, inc. —- 1-800-ALAMODE Philip G. Spool, ASA Real Estate Appraiser 10520 S.W. 130" Street .Miami, Florida 33176 Telephone (305) 235-2996 ax (305) 234-0282 June 24, 2009 Ms. Allison Carmine McDonald, Senior Attorney Dept. of Business & Professional Regulation Division of Real Estate 400 West Robinson Street, Suite N801 Orlando, Florida 32801-1757 Re: Case No. 2008060772 DBPR v. Carlos M. Insignares Review of an individual condominium unit located at 1800 Meridian Avenue, Unit No. 9 Miami Beach, Florida 33139 Dear Ms. McDonald: The purpose of this appraisal review is to report if there were any discrepancies within the . appraisal report on the individual condominium unit located at 1800 Meridian Avenue, Unit No. 9, Miami Beach, Florida. The date of appraisal is August 12, 2007 and the effective date of this review is June 23, 2009. This is an Appraisal Review Report, which is intended to comply with the reporting requirements set forth under Standards Rule 3-2 of the Uniform Standards of Professional Appraisal Practice. The Scope of Work was to provide a determination of the accuracy of the content of the report and any violations of the Uniform Standards of Professional Appraisal Practice (CUSPAP) as of August 12, 2007 but not render the Review Appraiser’s opinion of the market value. ‘ This review will discuss any factual mistakes and differences made by the Appraiser as reported by this Review Appraiser. Inconsistencies in the appraisal and the reasons for disagreement by the Review Appraiser are explained below. TYPE OF PROPERTY: Individual condominium unit SUBJECT ADDRESS: 1800 Meridian Avenue, Unit No. 9 Miami Beach, Florida 33139 REVIEW APPRAISER: Philip G. Spool, ASA 10520 S.W. 130th Street Miami, Florida 33176 Puitip G. Spoot, ASA. QALive bi Wy bs SADE, Olsvile RAL E EXHIBIT. # Ms. Allison Carmine McDonald, Senior Attorney Page Two DBPR - Division of Real Estate June 24, 2009 INTENDED USE OF REPORT: INTENDED USER OF REPORT: INTEREST VALUED: EFFECTIVE DATE OF REVIEW: SCOPE OF WORK (APPRAISAL REVIEW): REAL ESTATE REVIEWED: APPRAISER: For the sole purpose of assisting the client in decision making relating to the adequacy and accuracy of the appraisal report and any violations of the Uniform Standards of Professional Appraisal Practice (USPAP). There are no other intended uses. Ms. Allison Carmine McDonald, Senior Attorney for the Division of Real Estate, Department of Business and Professional Regulation, the client of this report. There are no other intended users. Fee Simple June 23, 2009 In preparing this appraisal review, the review appraiser read the report, reported any factual mistakes and pointed out any misapplication of appraisal methods, theory and/or proper appraisal techniques. The Review Appraiser visited the exterior of the subject property and the comparable sales and not the interior of the subject or comparable sales. The Review Appraiser did not render an opinion of the market value of the subject property as of the effective date of the Appraiser’s appraisal. Individual condominium unit located at 1800 Meridian Avenue, Unit No. 9, Miami Beach, Florida 33139 Carlos M. Insignares, State-Certified Residential Real Estate Appraiser, Certificate No. RD 3976 Puitip G. Spoot, ASA Ms. Allison Carmine McDonald, Senior Attorney Page Three DBPR - Division of Real Estate June 24, 2009 COMMENTS ON SUBJECT PROPERTY: The subject property is an individual condominium unit located in the northern portion of the South Beach area of the city of Miami Beach, Florida. The subject unit consists of one bedroom and one bath with a gross living area of 700 square feet. The subject building consists of a 10-unit two-story walk-up condominium building that was originally an apartment building. Based on an exterior observation of the building and property, there are no amenities and the common elements consists of minimal landscaping and a covered walkway for the second floor units. The building was constructed in 1956. Each unit is individually metered for gas, which is natural gas provided by Teco. Each unit owner pays for their own electric and gas with the monthly maintenance fee paying for building and grounds maintenance, insurance, water and sewer. The following details any discrepancies in each section of the appraiser’s report. SUBJECT: The Appraiser indicated the Contract Date as “current”, rather than the actual date of the contract, which was May 3, 2007. CONTRACT: Again, the appraiser stated that the contract date was “current” and not “May 3, 2007". Based on the copy of the contract that was within the Appraiser’s workfile (Exhibit 4, pages 61 through 64), the contract is an incomplete contract that is not signed by either the seller (1800 Meridian, LLC) or the buyer (Luis Orlando‘Caranza). Therefore, this is not a valid contract and the Appraiser should have either requested a full contract that is signed, or should have stated that it was not a full contract and not signed. The Appraiser did neither. Also, the appraiser should have mentioned in the appraisal report that the contract stated that the purchase price was $420,000 and the buyer is applying for financing in the amount of $420,000. In essence, it isa 100% financed deal with no money down. Appraiser acknowledged that “both parties have signed contract ...”. This is not true based on the contract that was in the Appraiser’s workfile. The Appraiser checked “Yes” instead of “No” for the statement: “Is there any financial assistance (loan charges, sales concessions, gift or down payment assistance, etc.) to be paid by any party on behalf of the borrower?”. Puiuip G. Spoo., ASA OF Ms. Allison Carmine McDonald, Senior Attorney Page Four DBPR - Division of Real Estate June 24, 2009 ’ NEIGHBORHOOD: Appraiser indicated that property values are increasing. However, the appraiser did not utilize a positive time adjustment for his comparable sales, which would reflect increasing values. Appraiser’s Sale No. 1 is five months old, Sale No. 2 is six months old and Sale No. 3 is one month old. In actuality, property values have been decreasing at the time of the Appraiser’s appraisal. This is confirmed with Money magazine, June 2008 issue, whereby prices peaked during the fourth quarter of 2006. The Appraiser had no support for his statement that property values were increasing. The Appraiser did not mention within the appraisal report that the subject building is located across the street (to the east) from the large parking lot for the Miami Beach Convention Center. While it is difficult to prove any external obsolescence, the Appraiser should have mentioned it. See aerial photograph attached to this report. Under Present Land Use, the Appraiser failed to calculate a percentage for the Miami Beach Convention Center and the parking lot, which is immediately east of the subject building. Appraiser should have mentioned that some apartment buildings and condominium buildings have on-site parking and some have no on-site parking, therefore on street parking would be needed. The subject has ten units and only six on-site parking spaces. There is metered parking on Meridian Avenue and non-metered parking on 18" Street that does not require a Residential Parking Permit. During events at the Miami Beach Convention Center, on street parking is at a premium and difficult to find. The Appraiser should have addressed this issue within the appraisal report, either in this Neighborhood section or within his Supplemental Text Addendum. PROJECT SITE: Appraiser had wrong zoning for the property. The correct zoning is RM-2, Residential Multi-Family District, not RM-100, Multi-Family Medium Density Residential. The correct zoning was taken from the Miami-Dade County Property Appraiser’s website. The zoning from First American Real Estate Solutions (FARES) was incorrect. The Miami- Dade County Property Appraiser’s tax information page is attached to this report. Puitip G. Spoor, ASA Ms. Allison Carmine McDonald, Senior Attorney Page Five DBPR - Division of Real Estate June 24, 2009 PROJECT INFORMATION: — (Exhibit 1, Page 11) The Appraiser answered “No” to: Is the developer/builder in control of the Homeowner’s Association (HOA)? The next line asks Management Group and the Appraiser answered “Developer”. There appears to be a conflict with the two statements and answers. PROJECT INFORMATION: — (Exhibit 1, Page 12) The Appraiser answered “Common Elements” to: Describe the common elements and recreational facilities. The Appraiser’s answer of “Common Elements” is an improper answer. The subject building common elements includes minimal landscaping, on-site surface parking for six cars and a covered walkway for the second floor units. PROJECT ANALYSIS: No discrepancies in this section. UNIT DESCRIPTION: No discrepancies in this section. PROJECT HISTORY: No discrepancies in this section. UNIT SKETCH: The Appraiser did not include the dimensions within the unit sketch. This is not a USPAP violation but appraiser peers would include the dimensions. How did the Appraiser come up with the Gross Living Area without the dimensions on the unit sketch? Pnitie G. Spoot, ASA em Uk ivar bed Ms. Allison Carmine McDonald, Senior Attorney Page Six DBPR - Division of Real Estate June 24, 2009 SALES COMPARISON APPROACH: Comments on all four comparables: Appraisal report did not indicate that the sales were verified with either real estate agent (listing or selling agent), buyer or seller. No support for the gross living area adjustment. Appraiser made a $65 per square foot adjustment for gross living area difference while the sale prices ranged from $548.37 (Sale No. 2) to $870.00 (Sale No. 1) per square foot. Value for a condominium unit is derived primarily from the gross living area more so than common elements and amenities. The Appraiser indicated in the appraisal report that property values are increasing (Exhibit 1, Page 11), however, in the Sales Comparison Approach the Appraiser did not utilize any positive time adjustments reflecting an increasing market value. Comparable Sale No. One: This sale consists of a condominium hotel called the Sanctuary. It is located within walking distance to the beach. The building has the following amenities: valet parking, rooftop pool, fitness center, concierge, room service, bar and a restaurant on premises. Each unit is fully furnished, including a flat plasma screen television, whirlpool tub and in- room refrigerator. The unit is set up as a hotel room and not as a condominium unit. This sale is a developer sale and not a sale from a previous buyer. The Appraiser did not make an adjustment for this sale having amenities while the subject had no amenities. The Appraiser indicated that this sale has 500 square feet, which was obtained from the Multiple Listing Service. This size is wrong. The correct size is 391 square feet and was confirmed with the condominium documents that is available on-line. Information from the condominium documents, including the gross living area is attached to this report. The Appraiser did not make an adjustment for parking as this sale has valet parking and the subject has limited on-site parking. Also, this sale is within walking distance to the beach and an adjustment should be made for this. In conclusion for this sale (Sale No. 1), it should not have been used as a comparable sale as it is not a condominium unit like the subject. It is a condominium hotel unit. However, since it was used, the above data indicates lack of adjustments or lack of support for adjustments. Puitie G. Spoo., ASA cere Ms. Allison Carmine McDonald, Senior Attorney . Page Seven DBPR - Division of Real Estate June 24, 2009 Comparable Sale No. Two: This sale consists of a one bedroom/one bath condominium unit within the Retreat Condominium complex, not The Palms Residence as the Appraiser indicated. This sale is a developer sale and not a sale from a previous buyer. It is located within walking distance to the beach. An adjustment should be made for this. The building has the following amenity: gated entrance to property. An adjustment should be made for this. No adjustment for Gross Living Area was made when the Appraiser should have made a negative $2,100 adjustment based on the Appraiser’s $65 adjustment per square foot and a difference of 33 square feet between this sale (734 sq.ft.) and the subject unit (701 sq.ft.). While this sale is considered a good comparable, the Appraiser failed to choose four other sales of the same type unit (one bedroom/one bath with 734 sq.ft.) that sold more recently. Théy-are as follows: Unit 203 May2007 $356,900 Unit 204 April 2007 $335,200 Unit 402. March 2007 $300,000. Unit 302. February 2007 $364,737 Comparable Sale No. 2 is Unit 401 and sold in January 2007 for $402,500. The Appraiser chose the oldest sale which also happens to be the highest sales price. Information on Sale No. 2 and the other sales of the same model within the same building that are closer in date to the effective date of appraisal obtained from FARES is attached to this report. Comparable Sale No. Three: Appraiser indicated that this sale is a one bedroom/one bath unit containing 650 square feet. According to the Miami-Dade County Property Appraiser’s records, FARES and the condominium documents, this unit is actually a two-bedroom/two bath unit and the unit size is 1,068 square feet (1,069 sq.ft. according to the condominium documents). Pup G. Spoot, ASA Ms. Allison Carmine McDonald, Senior Attorney Page Eight DBPR - Division of Real Estate June 24, 2009 Also, this development has the following amenities: gated entrance to property, swimming pool and patio and keyed entrance to buildings (there are two two-story buildings). This property is located within walking distance to the beach. Again, the subject has no amenities. This sale is a developer sale and not a sale from a previous buyer. In conclusion for this sale (Sale No. 3) should not have been used as a comparable sale as it is a two-bedroom/two bath unit containing 1,068 square feet and not a one bedroom/one bath unit containing 650 square feet. The amenities are superior to the subject and no adjustment was made. ADDENDUM: Appraiser failed to summarize whether subject “as improved” is its Highest and Best Use. This is a violation of Standards Rule 2-2 (b) (ix). “8. Sincerely, Philip G. Spool, ASA State-Certified General Real Estate Appraiser Certificate No. RZ 81 Puitie G. Spoor, ASA A DMIN'STRALIVE GUnwecai MEV GUI LAINE EXMIBIT # =“ PAGE § oF nr CERTIFICATE OF VALUE To the best of my knowledge and belief, the undersigned does hereby certify that: 1. The facts and data reported by the reviewer and used in the review process are true and correct. 2. The reported analysis, opinions and conclusions are limited only by the reported assumptions and limiting conditions and are my personal, unbiased professional analyses, opinions and conclusions. 3. Ihave no present or prospective interest in the property that is the subject of the work under review and no personal interest or bias with respect to the parties involved. .4, My compensation is not contingent upon the reporting of predetermined results. 5. My analysis, opinions and conclusions were developed, and this report has been prepared, in conformity with the Uniform Standards of Professional Appraisal “ “Practice (USPAP) and the State of Florida for state-certified appraisers. I have complied with the USPAP competency provision. 6. To the best of my knowledge and belief, the statements of fact contained in this appraisal review, upon which the analysis, opinions and conclusions expressed herein are based, are true and correct. 7. This appraisal review sets forth all of the limiting conditions imposed by the terms of this assignment or by the undersigned affecting the analyses, opinions and conclusions contained in this report. . 8. No one provided significant professional assistance to the appraiser signing this report, unless specifically noted herein. Puiip G. Spoor, ASA ALMINISTRAL ve - COMP EXHIBIT 46 “AINT PAGE op ene. Seceaeee CERTIFICATE OF VALUE (Continued) 9. The use of this report is subject to the requirements of the State of Florida relating to review by the Real Estate Appraisal Subcommittee of the Florida Real Estate Commission. 10. The American Society of Appraisers conducts a voluntary program of continuing education for its designated members. ASA's who meet the requirements of this program are awarded periodic educational certification. Philip G. Spool is certified under this program. 11. I, Philip G. Spool, personally visited the exterior of the subject condominium unit and comparable sales on June 21, 2009. Philip G. Spool, ASA State-Certified General Real Estate Appraiser Certificate No. RZ 81 DATE: 6/24/09 Puiuie G. Spoo., ASA eougiiicaiMeiive GUMPLAINT EXHIBIT #2 GENERAL ASSUMPTIONS AND LIMITING CONDITIONS 1. The reviewer is assuming that the property that has been appraised is free and clear of liens and encumbrances, except as noted. 2. Both the legal description and dimensions in the appraisal report are assumed to be true and correct. 3. Responsible and competent property management and ownership are assumed. 4. Neither all nor any part of this Review Appraisal Report shall be disseminated to the general public using the appraiser's name or designation, without prior written consent of the appraiser signing this report. 5.~ Authorization is not allowed for the out-of-context quoting from, or partial reprinting of, this appraisal review. 6. No responsibility is to be assumed for matters legal in nature nor is any opinion of the title rendered herewith. Good title is assumed. 7. By reason of the report, there is no requirement to testify with reference to the property herein reviewed, unless arrangements have been previously made. 8. It is assumed that there are no hidden or unapparent conditions of the property that render it more or less valuable. No responsibility is assumed for such conditions or for arranging engineering studies that may be required to discover them. 9. Itis assumed that there is full compliance with all applicable federal, state and local environmental regulations, applicable zoning regulations and laws, unless otherwise stated in the appraisal report that is reviewed. Puitip G. Spoot, ASA ADMINISTRATIVE COMPLAINT EXHIBIT # GENERAL ASSUMPTIONS AND LIMITING CONDITIONS (Continued) 10. The reader should be advised that my employment was not contingent on the appraisal review providing a direction in assignment results that favors the cause of the client, the attainment of a stipulated result or the occurrence of a subsequent event directly related to the reviewer’s opinions and specific to the assignment’s purpose. Additionally, I have complied with the USPAP Competency Rule. 11. The presence of substances such as asbestos, urea-formaldehyde foam insulation or other potentially hazardous materials, may affect the value of the property. No responsibility is assumed for any such conditions or for any expertise or engineering knowledge required to discover them. The client is urged to retain an expert in this field. Puitie G. Spoot, ASA RATIVE COMPLAINT QUALIFICATIONS OF THE APPRAISER PHILIP G. SPOOL, ASA eee Education: Bachelor of Science in Business Administration, University of Florida, Gainesville, Florida, 1971 (Maj or-Banking and Finance; Minor-Economics). Affiliations: Accredited Senior Appraiser (ASA), American Society of Appraisers. Designated in 1979. First vice president of the Greater Miami Chapter No. 46 of the American Society of Appraisers and past president from 2002 to 2004 and from 1981 to 1982. State Certified General Appraiser, State of Florida, License Number RZ81. Member of the Miami-Dade County Mortgage Fraud Task Force, appointed by the mayor’s office in 2007. Experience: Appraised various types of properties, including: Single Family Residences Condominiums Office Buildings Residential Developments ms Retail Stores Vacant Land Warehouses Apartment Buildings Independent Contractor, 1992 to current Chief Appraiser, Vice President of Flagler Federal Savings and Loan, 1972 to 1992 (Chief Appraiser from 1984 to 1992). Instructor: Adjunct faculty member of Miami-Dade College. Instructor for the AB-1, Registered Trainee Appraiser course and the AB I, Certified Residential Appraisal course. General Appraiser Instructor, Permit Number GA1000090. Editorial consultant with Cengage learning (formerly Thompson Publishing Company) reviewing new editions of appraisal books. Course Work: Society of Real Estate Appraisers (now part of Appraisal Institute): Course 101, Introduction to Appraising Real Estate. Course 201, Introduction to Income Property Valuation. Course 202, Applied Income Property Valuation. Course R-2, Narrative Report Writing and Examination. The American Society of Appraisers has a mandatory recertification program for all of its Senior members. I am in compliance with the requirements of that program. Pup G. Spoot, ASA VE COMPLAINE CHASE Principal! Appraisal Services, Inc. d/bia: PAS 8502 SW 146th Court Miami, Florida 33183 305-388-3356 Office 305-431-1451 Cell October 3, 2008 Attn: Home Lending Collateral Risk Management Appraiser Panel Management 4900 Memorial Highway (FL2320) Tampa, Fi 33634 Telephone 813-584-2325 Facsimile 813-864-7274 RE: Property Address: 1800 Meridian Avenue #9 Miami Beach, Fiorida Our File No: 07-344 Dear Sir/Madam: lam writing to you in hopes the above referenced matter will be resolved amicably and beneficial to all parties involved. | am cancemed since, for the past ten (10) years | have been submitting appraisal files to CHASE. | have never had any questionable issues with CHASE. Pursuant to your letter dated September 15, 2008, a copy of which is enclosed; | will address and answer everything to the best of my abilities. Your department will be provided with copies of “comparabie sales” and any and all documentation available to me at the time of the initial inspection. Everything | will divulge to your department will be completed in good faith. In providing your department with all documentation, | trust your department will also reveal any documentation or discovery proving otherwise. Regarding the “Listing History” please, be advised the above referenced unit was not listed at time of the inspection on August 13, 2007. it is presently showing as “active” on MLS. In other words, as of August 04, 2008, it was showing as active with one hundred fifty five (155) days on the market. However, | Carlos Insignares, (known herein as APPRAISER did not have this information accessible or attainable at said time. This information was_not available on MLS. Therefore, omission does not constitute fraud in this particular case because; it did not exist on MLS on the date the appraisal report was performed. By revealing and advising you of this finding, | am formally rebutting you accusations. | trust you understand there was NO breakage of USPAP 1-5 jaw. In reference to the lower bedroom, this was a one (1)-story condo-unit. Therefore, there was no lower level, i.e.; reviewer has made a terrible and irrevocable error, which would be a defamation on my business’ character and ethical qualifications of me, as an appraiser of a reputable standing in the community. As to the “comparable sales” utilized in original report: It was noted, upon on careful examination reviewer signed said review the same day APPRAISER originally signed referenced file. How could this be possible? This is a very odd situation. There is absolutely no possible {00015388.UOC; 1 }00015133.DOC,1 sATIVE COMPLAINTEXFuus i ‘Uf OF human means by which he/she could have reviewed information on August 13, 2007, when APPRAISER inspected property on August 13, 2007, and signed report on August 14, 2007. Pursuant to comparable sale #1 & #2 provided by reviewer, these sales were not showing on records as “closed”. Comparable #1 closed on 08/02/2007 and Comparable #2 ciosed on 08/10/2007. It is difficult to consider and above all believe the review appraiser was able to retrieve the HUD-1 Forms for these sales within said time period. ¢ As per his/her data sources and verifications, there is not a mention of HUD-1 forms, just public records and MLS, which at that time as aforementioned, this information was not recorded. ¢ Regarding the copies of comparable sales, which were available at said time of inspection APPRAISER is enclosing herein. _{f, | would have had these sales comparables available at time of inspection, they would have been utilized in good faith. One month after original report was sent to CHASE, the comparables appeared. Thus, the value conclusion would have been quite different. e Regarding “comparable gales” provided in the original report, said sales were the most similar to the subject project, comparable #1 was adjusted for superior amenities and for being fully furnished. Comparable sales #2 & #3 were also condo conversion with similar arnenities, age, conditions, location & marketability. APPRAISER is also providing a “Comparable Market Analysis” page of the subject building showing sales in August and September of 2007, for $420,000.06, which were the same month and one (1) month after inspection of unit in question. In conclusion, | have always heid PRINCIPAL APPRAISAL SERVICES dibia PAS and myself to the highest standards in the appraisal practice. | have never had an issue with the State of Florida or any federally related entities. | am sought after by the BETTER BUSINESS BUREAU for high professionalism as well as, respected by my peers in the appraisal field. | respectfully request with great hope and fair expectations to be reconsidered in taking me off the “INELIGIBILE LIST’. However, should you require further information from me please, do not hesitate to contact me at the above referenced telephone number. Nevertheless, should you desire to question any other matter or desire such as obtaining references, which might improve my status and reputation with CHASE please, advise as to the procedure to rectify said situation. PRINCIPAL APPRAISAL SERVICES d/b/a _ as PAS would like to continue to maintain an impeccable association with CHASE and would comply with any and all of CHASE’s request. Please, reconsider your decision. | hope and pray | meet all your expectations and comply all with all your demands and standards. | have been an appraiser for 11 “struggling” years and have always been a “legitimate and independent” small appraisal firm. | cannot reiterate enough with the purpose of helping you understand my position, wherein it has been and continues to be my duly to comply with any and all ordinances, rules, regulations, and laws, which prepare many files to be processed and approved by your entity with conformity and without any hesitations since 1998. Should you take all my personal and business information and reputation into consideration before making a harsh judgment or decision, | would be most appreciative. Thanking you in advance for your time and cooperation in this maiter. The aforementioned detailed explanation is being respectfully submitted for careful review and relevance to said subject matter. Sincerely, os M. Insignares cc: to file Enclosures {009 15388.DOC, 1}00015153.D0C;! EXHIBIT. : _ PAGE Samed ENCLOSURES Your letter dated September 15, 2008; Field Review Report provided by Chase; Our Appraisal Report dated August 14, 2007; Current copy of MLS property listing printed October 2, 2008 (showing current information), Current copy of FARES Comparable Market Analysis printed October 2, 2008 (showing current information); and FARES Comparable Market Analysis printed and used for said report on August 9, 2007 OAbWN> a {000!5388.DOC:1}00015153.DOC;1 & COMPLAINT OF EXHIBIT mARrME 6 " Principal Appraisal Services, Inc. 8502 SW 146 Court Miami, Florida 33183 Phone:(305) 388-3356 Fax:(305) 387-9241 February 7,2009 Ms. Trish Turner Investigation Specialist II Florida Department of Business and Professional Regulation 5080 Coconut Creek Parkway Suite A ‘ Margate, Florida 33063 Re: DBPR Case # 2008060772 Dear Ms. Turner: Enclosed please find letter sent by Chase on September 15,2008 and my response to same. Incase they did not supply you with these copies. I believe they are wrong on these allegations, as you can see on my rebuttal to them. I used due diligence and due care and at no point was misleading. I have been appraising for 10 years and never had any issues with a lender or financial institution or any federally related entity. Please note I complied fully with what they required when given the opportunity to rebuttal said review. I did not know I was suppose to send you a copy first, since this was 5 month’s ago that they contacted me. This was a retroactive review so certain comparable’s as you will note which the reviewer used were not available to me at that time. The first 2 comparable’s were not on Public Records as of time of original appraisal report. Therefore it is injustice that he/or she ‘utilized them as comparable’s since they were actually not recorded at that time nor were available to me. In 10 years of appraising & reviewing I have never seen an appraisal or a review that "2 comparable sales were of same month as inspection, if original appraiser would have had these sales available of course being the most recent they would have been utilized, this is truly not fair as they were not there when inspection was done, and of course 1 year and 1 month later they would appear. The original appraisal was done on 08/13/2007 and comparable #1 of reviewer closed on 08/02/2007 and comparable #2 closed on 08/10/2007 which as known ,Public Records are 1 to 2 month’s behind on record updating as noted by comparable spread sheet provided from time of inspection. According to Mortgage Firm( Banc plus Mortgage) : Broker name being Andrew Cox (305) 412-4880 ,who sent me to do appraisal, it is or was standard practice on all “No Documentation Loan” with Chase that an appraisal review be done by them, and they would be performed on every “No Documentation Loan” since they were lending on credit and value, they wanted to confirm value on every deal, which they did prior to closing the unit in question. Appraiser is also enclosing sales within the subject building in 2007 and one more recent in 11/2008 to help support original appraisal report. I have reviewed current situation with unit and noted no lender/mortgage company Typ TIVE COMPLAINTEXHIBIT. 5 a pace LD 5 on file or any loan amount. Per all public records, there is no “Master on File” meaning (No Loan). The economic times are very hard and all American’s and business’s are suffering (economically). As all business are losing money and cutting jobs and unemployment rates are on an astronomical increase, said owner might have also suffered set back, therefore to fault appraiser would be incorrect in these current times as majority of homes including my own which I purchased 8 years ago and only owe $160,000 is in the foreclosure process. It is in my opinion Chase and Larry D. Handley are trying to find other’s to fault for there losses, and is misleading the D.B.P.R. and Florida Real Estate Appraisal Board. Chase & Mr. Handley are trying to discredit said appraiser which is unethical and unprofessional. I implore you to please read my rebuttal which will explain everything in question. Mrs. Turner I would really appreciate speaking to you about this matter. My phone #305-388-3356 or Cell#305-431-1451. Please feel free to contact me at any time day or night. Thank You So Much For Your Time. Sincerely lea Carls M. Insignares Enclosures ATIVE COMPLAINT g Y EXHIbi I or ___ PAGE ate }rULlLO NUMBER: ‘ENTER=FWD F1=DOCS ‘IRLO VEirIe€ Ot Li rruuey EROA we week ee ee tee wm eT wee eaves 11500 PENNSYLVANIA AVE 3A 33139 2 2 0 1935 1,068 371. 772 1. 19 |OWNER'S NAME AND ADDR W GV P FLR CONSTRUCT ZONING LV SOFT iJEFFREY SZAK &W SUZANNE 0 * N/A * 39 - RM-60 0 (8962 GREY HAWK PT LEGAL DESCRIPTION !ORLANDO FL 32836 HARRIET COURT CONDO oi UNIT 3A [LOT SIZE ==> ISC COUNTY UNDIV 5.8788% : 0.00SQF INT IN COMMON ELEMENTS ‘LOT TYPE => OFF REC 23866-3946 ‘YEAR BUILDING LAND ASSESSMENT AS/FT YEAR TAXES D TX/FT ;2008 0 0 333,500 312.26 08 6,761.65 N 6.33 i COUNTY MARKET VALUES HOMESTD SALE DATE AMOUNT AND TYPE ‘YEAR BUILDING LAND TOTAL 0 JUL. 2007 397,000 1 ‘2008 f°) 0) 333,500 SLC CLC : 04 07 ‘UNITS 1BD 2BDS 3BDS EFF MILLAGE RT LP MLS-QTY . 1 24.745700 N ‘SELLER (S)==> DECO PALMS LC c ‘MORTGAGE COMPANY AMOUNT DATE MTG TYPE RATE NUMBER ‘WELLS FARGO BK NA 252,000 071107 CON ADJUS 6.50 F4=TAX F5=LEGL F7=DIM F8=MORE F6=COMPS MENU RECENT DEED/MTG PRESENT - F1=VIEW MANES DALY “sree ExHiBiT 45 PAGE pace __/ OF a. oO | Cleoicach, FL ae |

Docket for Case No: 10-001097PL