STATE OF FLORIDA yp DEPARTMENT OF BUSINESS & PROFESSIONAL REGULATION ER FLORIDA REAL ESTATE APPRAISAL BOARD 200 opy FLORIDA DEPARTMENT OF BUSINESS & ayy, PB 39 PROFESSIONAL REGULATION, ACMA SOW of DIVISION OF REAL ESTATE, gPL HEA na ve Petitioner, | O- QU3 v. CASE NO. 2009018478 2009018488 JOHN MICHAEL NOBLET, 2009018495 2009018503 Respondent. / ADMINISTRATIVE COMPLAINT The Florida Department of Business & Professional Regulation, Division of Real Estate ("Petitioner") files this Administrative Complaint against John Michael Noblet (“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 3827 in accordance with Chapter 475 Part II of the Florida Statutes. 3. The last license the State issued to Respondent was as a state certified residential real estate appraiser at 7550 NW 61** H:\FREAB\noblet.doc . I FDBPR v. John Michael Noblet Case No. 2009018478 Administrative Complaint Terrace, Parkland, Florida 33067. 4. On or about February 26, 2008, Respondent developed and communicated an appraisal report (Report 1) on a property commonly known as 1960 Flamingo Place 4803, Riviera Beach, Florida 33404 (Subject Property 1), valuing Subject Property 1 at $240,000. A copy of Report 1 is attached hereto and incorporated herein as Administrative Complaint Exhibit 1. 5. On or about December 4, 2007, Respondent developed and communicated an appraisal report (Report 2) on a property commonly known as 1951 Hibiscus Lane, Riviera Beach, Florida 33404 (Subject Property 2), valuing Subject Property 2 at $240,000. A copy of Report 2 is attached hereto and incorporated herein as Administrative Complaint Exhibit 2. 6. On or about February 27, 2008, Respondent developed and communicated an appraisal report (Report 3) on a property commonly known as 1120 Lucaya Drive 2101, Riviera Beach, Florida 33404 (Subject Property 3), valuing Subject Property 3 at $305,000. A copy of Report 3 is attached hereto and incorporated herein as Administrative Complaint Exhibit 3. 7. On or about January 28, 2008, Respondent developed and communicated an appraisal report (Report 4) on a property commonly known as 2009 Nassau Drive 3605, Riviera Beach, Florida 33404 H:\FREAB\noblet.doc 2 FDBPR v. John Michael Noblet Case No. 2009018478 Administrative Complaint (Subject Property 4), valuing Subject Property 4 at $255,000. A copy of Report 4 is attached hereto and incorporated herein as Administrative Complaint Exhibit 4. 8. Petitioner received a complaint from a Freddie Mac fraud investigator concerning these Reports (among others). A copy of the investigator’s preliminary summary report is attached hereto and incorporated herein as Administrative Complaint Exhibit 4. 9. Subject Property 2 lay in a new townhome development known as Sonoma Bay, while the remaining Subject Properties lay in a new townhome development known as Marsh Harbour. 10. The primary method of determining value for the Subject Properties consisted of the Sales Comparison Approach, which relied upon Comparable Sales selected exclusively from both townhome developments. 11. The Marsh Harbour project was developed by BMG/Cornerstone Joint Venture (Cornerstone) and its limited partner, Marsh Harbour Associates, LTD, as evidenced by the Resolutions of Developer filed in the public records of Palm Beach County at Official Records Book 20065, Page 0770. 12. The Sonoma Bay project was developed by Sonoma Bay, Inc. which filed the Declaration of Covenants, Restrictions and Reciprocal Easement for the Sonoma Bay project in the public H:\FREAB\noblet. doc 3 FDBPR v. John Michael Noblet Case No. 2009018478 Administrative Complaint records of Palm Beach County at Official Records Book 20395, Page 0659. 13. The relationship between BMG/Cornerstone Joint Venture and Sonoma Bay, Inc as shown in the Florida Secretary of State records is as follows: A) Sonoma Bay, Inc’s corporate officers are Stuart I. Meyers, Jorge Lopez, Leon J. Wolfe, and Mara S. Mades; B) There is a fictitious name entity, Sonoma Bay, owned by Sonoma Bay Associates, Ltd. A change of address was filed for the fictitious name entity, Sonoma Bay, by Leon J. Wolfe on July 28, 2004; Cc) Sonoma Bay Associates, Ltd has as its general partner, Cornerstone Sonoma Bay, LLC; D) Cornerstone Sonoma Bay LLC’s managers include the Stuart I. Meyers Family Partnership, LTD, JL Holding Corporation, M3, Inc, and MSM, Inc.; E) While BMG/Cornerstone Joint Venture and Sonoma Bay Inc have different registered agents, they use the same principal address, 2100 Hollywood Boulevard, Hollywood, Florida 33020; F) Marsh Harbour Associates LTD and Sonoma Bay Associates LTD share a principal address of 2121 Ponce de Leon Boulevard, PH 2, Coral Gables, Florida 33134, and the same registered agent; H:FREAB\noblet.doc 4 FDBPR v. John Michael Noblet Case No. 2009018478 Administrative Complaint G) The registered agent for BMG/Cornerstone Joint Venture is Cornerstone Congress, LLC, whose address is 2121 Ponce de Leon Boulevard, PH2, Coral Gables, Florida 33134, an address shared with Sonoma Bay Associates, LTD; H) The managing members of Cornerstone Congress LLC are the Stuart I. Meyers Family Partnership, LTD; JL Holding Corporation, M3, Inc, and MSM, Inc.; and I) BMG/Cornerstone Joint Venture and Sonoma Bay, Inc are therefore interlocking corporations; 14. Between August 2007 and March 2008, Cornerstone sold its hitherto fore unsold inventory of finished new townhomes, in the Marsh Harbour project as individual property sales and not as a bulk sale, to a Florida corporation, Smacview, Inc. (Smacview) . 15. Sonoma Bay, Inc. sold its hitherto fore unsold inventory of finished new townhomes in the Sonoma Bay project as individual property sales and not as a bulk sale to Smacview between August 2007 and December 2007. 16. Respondent’s work file contained copies of printouts from the Palm Beach County Property Appraiser’s web site for all the Subject Properties and Comparable Sales, and copies of all the deeds showing the transfers from Cornerstone and Sonoma Bay, Inc to Smacview, and from Smacview to the individual buyers, except as H:\FREAB\noblet.doc 5 FDBPR v. John Michael Noblet Case No. 2009018478 Administrative Complaint noted herein. 17. Between the latter half of 2007 and March 2008, there was a slowdown in the housing market, including properties such as the Subject Properties. The slowdown was characterized by declining one-unit housing trends, oversupply, and increased marketing time. 18. Three of the four Subject Properties were previously unsold Cornerstone new townhomes, sold by Cornerstone to Smacview between November 2007 and March 2008. 19. Subject Property 2 was a previously unsold Sonoma Bay, Inc new townhome sold by Sonoma Bay, Inc to Smacview on December 4, 2007. 20. Smacview then sold all four Subject Properties to individual buyers (the same buyer purchased Subject Properties 1 and 4) within three months or less of Smackview’s acquisition of the Subject Properties. 21. Smacview’s sales to the individual buyers were at significantly increased prices than those paid by Smacview to Cornerstone or Sonoma Bay, Inc and the sales were under circumstances suggestive of fraud. 22. Smacview did nothing to enhance the value of the Subject Properties, such as additions, upgrades, or renovations to justify the sales price increases. H:\FREAB\noblet.doc 6 FDBPR v. John Michael Noblet Case No. 2009018478 Administrative Complaint 23. Respondent, in determining valuation primarily through the Sales Comparison Approach, utilized Comparable Sales in all four Reports that were all Cornerstone/Sonoma Bay, Inc/Smacview properties, and not from a “competing project” as falsely stated in the Reports. 24. Given the price manipulation by Smacview, this use of Manipulated Comparable Sales and/or listings resulted in inflated valuations of the four Subject Properties. 25. All four Subject Property purchases were financed through lenders, who stood to suffer economic loss if the Subject Properties were not worth what they were appraised at. 26. The use of Comparable Sales from comparable, competing developments outside the Subject Property developments to avoid prices artificially set by the developer is a recognized, appropriate appraisal method and technique necessary to produce a credible appraisal. 27. In each of the four Reports, Respondent utilized only one Comparable Sale that was “outside” the respective Cornerstone/Sonoma Bay, Inc Subject Property townhome development, but that “outside” Comparable Sale lay in the other Sonoma Bay, Inc/Cornerstone townhome development . 28. Respondent made the following errors or omissions in H:AFREAB\noblet.doc 7 FDBPR v. John Michael Noblet Case No. 2009018478 Administrative Complaint Report 1: A) Respondent's version of Report 1 differs from that provided by the Complainant in that it includes one additional “pending” Comparable Sale not present in Complainant’s copy, but which was also a Cornerstone/Smacview property; B) Respondent received an appraisal order form (attached hereto and incorporated herein as Administrative Complaint Exhibit 6) that lists a sales price-and estimated value of $240,000, which is the exact figure arrived at by Respondent in valuing Subject Property 1. In each of the four Reports, Respondent’s valuation equaled the sales contract price of the Subject Property; C) Respondent checked the box that he did analyze the sales contract for the Subject Property, but provided no meaningful analysis; D) Respondent misstated the one unit housing trends as stable property values, demand/supply in balance/ and 3-6 months marketing time; E) Respondent checked the box indicating he analyzed the sales contract, but failed to note that the sales contract from Smacview to Livana J. Miracle in Respondent’s work file, a copy of which is attached hereto and incorporated herein as Administrative Complaint Exhibit 7, contained language suggesting it was a pre- H:FREAB\noblet.doc 8 FDBPR v. John Michael Noblet Case No. 2009018478 Administrative Complaint construction contract. Paragraph 5 on page 3 of 14 of the sales contract states “The Dwelling Unite will be constructed in substantial accordance (in Seller’s opinion) with the plans and specifications given to Buyer upon execution of this Agreement...” F) Respondent failed to note that Subject Property 1 was a completed townhome as of the effective date of Report 1, and was sold as such by Marsh Harbour Associates (a limited partner whose general partner was Cornerstone) to Smacview on December 17, 2007 for $157,275; G) Respondent noted the $157,275 prior sale of Subject Property 1, but failed to disclose why Subject Property 1 increased $82,725 in value by the January 24, 2008 sales contract date; H) Respondent checked the box reciting erroneously without explanation that the seller of Subject Property 1 was not the owner of public record; I) Respondent listed the neighborhood boundaries for Subject Property 1's neighborhood, but Comparable Sale 3 was outside those boundaries; J) Respondent described the roof surface inconsistently as “s./tile’; K) Respondent failed to indicate whether Subject Property 1 had a garage on page 1, but listed open parking on page 2; H:\FREAB\noblet.doc 9 FDBPR v. John Michael Noblet Case No. 2009018478 Administrative Complaint L) Respondent's work file failed to contain any documentation for Comparable Sale 4, support for the alleged 41 comparable listings and the alleged 21 potential comparable sales; M) Respondent disclosed a prior sale of Comparable Sale 1 for $164,500 in October 2007 (from Marsh Harbour Associates LTD, a limited partner of general partner Cornerstone to Smacview), but failed to analyze the prior sale history of Comparable Sale 1 vis- a-vis the $240,000 sales from Smacview to Jean B. Lorfils also in October 2007; N) Respondent disclosed a prior sale of Comparable Sale 2 for $172,115 in October 2007 (from Marsh Harbour Associates LTD, a limited partner of general partner Cornerstone to Smacview), but failed to analyze the prior sale history of Comparable Sale 2 vis- a-vis the $255,000 sales from Smacview to Luke M. Lindsay in January 2008; ©) Respondent stated in Report 1 that the data source for Comparable Sale 3 was a HUD statement, yet denied receipt of any HUD statements with regard to Comparable Sales in a written statement, a copy of which is attached hereto and incorporated herein as Administrative Complaint Exhibit 8; P) Respondent disclosed a prior sale of Comparable Sale 3 for $170,990 in December 2007 (from Marsh Harbour, a limited partner of H:\FREAB\noblet.doc 10 FDBPR v. John Michael Noblet Case No. 2009018478 Administrative Complaint general partner Cornerstone to Smacview), but failed to analyze the prior sale history of Comparable Sale 3 vis-a-vis the $240,000 sale from Smacview to Rose Nicolas also in December 2007; and Q) Respondent’s work file contained only the first page of the sales contract between Smacview and Michael A. Ott regarding Comparable Sale 4. 29. Respondent made the following errors or omissions in Report 2: A) Respondent received an appraisal order form (attached hereto and incorporated herein as Administrative Complaint Exhibit 9) that lists a sales price of $240,000, which is the exact figure arrived at by Respondent in valuing Subject Property 2; B) Respondent checked the box that he did analyze the sales contract for the Subject Property, but provided no meaningful analysis; C) Respondent misstated the one unit housing trends as stable property values, demand/supply in balance/ and 3-6 months marketing time; D) Respondent checked the box indicating he analyzed the sales contract, but failed to note that the sales contract from Smacview to Roxx N. Alvarado in Respondent’s work file, a copy of which is attached hereto and incorporated herein as Administrative H:\FREAB\noblet.doc W FDBPR v. John Michael Noblet Case No. 2009018478 Administrative Complaint Complaint Exhibit. 10, contained language suggesting it was a pre- construction contract. Paragraph 5 on page 3 of 14 of the sales contract states “The Dwelling Unite will be constructed in substantial accordance (in Seller’s opinion) with the plans and specifications given to Buyer upon execution of this Agreement...” E) Respondent failed to note that Subject Property 2 was a completed townhome as of the effective date of Report 2, and was sold as such by Sonoma Bay, Inc.(a limited partner whose general partner was Cornerstone) to Smacview on November 19, 2007 for $179,900; F) Respondent noted the $179,900 prior sale of Subject Property 2, but failed to disclose why Subject Property 2 increased $60,100 in value by the January 8, 2008 sales contract date; G) Respondent listed the neighborhood boundaries for Subject Property 2's neighborhood, but Comparable Sale 3 was outside those boundaries; H) Respondent described the roof surface inconsistently as “s./tile’; I) Respondent failed to indicate whether Subject Property 2 had a garage on page 1, but listed open parking on page 2; J) - Respondent noted that “no obvious repairs” were needed to Subject Property 2, but spoke of upgrades whose significance is H:AFREAB\noblet.doc 12 RTM on FDBPR v. John Michael Noblet Case No. 2009018478 Administrative Complaint unclear; K) Respondent’s work file failed to contain any documentation to support Respondent’s contention there were 33 comparable listings, and 17 potential comparable sales in the proceeding 12 months; L) Respondent disclosed a prior sale of Comparable Sale 1 for $179,900 in September 2007 (from Sonoma Bay, Inc to Smacview), but failed to analyze the prior sale history of Comparable Sale 1 vis- a-vis the $240,000 sales from Smacview to Luckner St. Jour in January 2008; M) Respondent disclosed a prior sale of Comparable Sale 2 for $179,900 in August 2007 (from Sonoma Bay, Inc to Smacview), but failed to analyze the prior sale history of Comparable Sale 2 vis- a-vis the $240,000 sale from Smacview to Jean Barthelemy also in August 2007; N) Respondent disclosed a prior sale of Comparable Sale 3 for $192,780 in August 2007 (from Marsh Harbour Associates, LTD to Smacview), but failed to analyze the prior sale history of Comparable Sale 3 vis-a-vis the $255,000 sale from Smacview to Frantz Toussaint in September 2007; 0) Respondent listed the effective date on page two of the Report as 12/4/07, while listing the effective date on the H.\FREAB\noblet.doc 13 FDBPR v. John Michael Noblet Case No. 2009018478 Administrative Complaint signature page as 1/9/08; P) Respondent stated the “..the Income Approach is given lesser weight for existing properties,” when Respondent failed to develop the Income Approach to valuation; Q) Respondent did develop a Cost Approach valuation for Subject Property 2, but Respondent’s work file failed to contain documentation to support the Cost Approach figures; R) In the reconciliation section of the Report, Respondent failed to mention the Cost Approach valuation. 30. Respondent made the following errors or omissions in Report 3: A) The version of Report 3 maintained in Respondent’s work file differs from that provided by the Complainant in that Respondent’s version recites a seller concession of $18,300 and the seller contributing 6% of the purchase price. The Complainant's copy shows $9,150 and 3% of the purchase price. Comparable Sale 3 is reported to have 7 rooms total in Respondent's copy, while only 6 in Complainant's copy; B) Customarily, sellers pay a percentage of the closing costs, not the sales price, as a seller concession. The seller paying a percentage of the sale price has the effect of reducing the sales price; 2a NR SRR — Bcd H:\FREAB\noblet.doc 4 FDBPR v. John Michael Noblet Case No. 2009018478 Administrative Complaint C) Respondent checked the box that he did analyze the sales contract for the Subject Property, but provided no meaningful analysis; D) Respondent misstated the one unit housing trends as stable property values, demand/supply in balance/ and 3-6 months marketing time; E) Respondent checked the box indicating he analyzed the sales contract for Subject Property 3 dated February 9, 2008, but failed to note that the sales contract from Smacview to Marie Rose Saint-Louis in Respondent’s work file, a copy of which is attached hereto and incorporated herein as Administrative Complaint Exhibit 11, contained language suggesting it was a pre-construction contract. Paragraph 5 on page 3 of 14 of the sales contract states “The Dwelling Unite will be constructed in substantial accordance (in Seller’s opinion) with the plans and specifications given to Buyer upon execution of this Agreement...” F) Respondent failed to note that Subject Property 3 was a completed townhome as of the effective date of Report 3, yet it was not sold by Marsh Harbour Associates, Inc to Smacview until after the date of the contract from Smacview to Marie Rose Saint-Louis, on March 25, 2008 and the sale from Marsh Harbour Associates, Inc to Smacview was for $183,141; H:\FREAB\noblet.doc 15 FDBPR v. John Michael Noblet Case No. 2009018478 Administrative Complaint G) The sale from Smacview to Marie Rose Saint-Louis was for $305,000; H) Respondent noted “sales information unavailable” as to the prior sales history of the Subject Property rather than stating there was no recorded sales history for the Subject Property; I) Even though the transfer from Marsh Harbour Associate, Inc to Smacview had not occurred as of the effective date of Report 3, Respondent listed Smacview as the owner of public record and further checked the box “yes” that the seller was the owner of public record; J) Respondent listed the neighborhood boundaries for Subject Property 3's neighborhood much more expansively (and thereby included within those boundaries distinctly different neighborhoods) than those boundaries listed for Subject Property 1, which was in the same project as Subject Property 3; K) Respondent described the roof surface inconsistently as ‘“s./tile”; -L) Respondent failed to indicate whether Subject Property 3 had a garage on page 1, but listed open parking on page 2; M) Respondent's work file failed to contain any documentation for the alleged 33 comparable listings and the alleged 17 potential comparable sales; camanninn poe anermmten mee H:\FREAB\noblet.doc 16 Soins eet ig Sisaeeoniiee eames 2 “RCRD RR ane FDBPR v. John Michael Noblet Case No. 2009018478 Administrative Complaint N) Respondent disclosed a prior sale of Comparable Sale 1 for $222,140 in October 2007 (from Marsh Harbour Associates LTD to Smacview), but failed to analyze the prior sale history of Comparable Sale 1 vis-a-vis the $310,000 sales from Smacview to Marie V. Joseph in November 2007; 0) Respondent disclosed “no sales information available” as to prior sales of Comparable Sale 2, yet Respondent’s work file contained a copy of the Special Warranty deed from Marsh Harbour Associated, LTD to Smacview (a copy of which is attached hereto and incorporated herein as Administrative Complaint Exhibit 12) for $248,385 on July 18, 2007. Accordingly, Respondent failed to analyze the prior sale history of Comparable Sale 2 vis-a-vis the $320,000 sale from Smacview to Antoine Sanon in January 2008; P) Respondent disclosed a prior sale of Comparable Sale 3 for $201,405 in July 2007 (from Marsh Harbour Associates, LTD to Smacview), but failed to analyze the prior sale history of Comparable Sale 3 vis-a-vis the $315,000 sale from Smacview to Marie R. Saint Louis in January 2008; Q) Respondent disclosed a prior sale of Comparable Sale 4 for $210,990 (from Sonoma Bay, Inc. to Smacview on October 22, 2007, incorrectly stated as June 2006) yet failed to analyze the prior _ Sale history of Comparable Sale 4 vis-a-vis the $305,000 sale from H:\FREAB\noblet.doc 17 FDBPR v. John Michael Noblet Case No. 2009018478 Administrative Complaint Smacview to Jean B. Lorfils on October 26, 2007-stated as October 30, 2007; and R) Respondent disclosed a prior sale of Comparable Sale 5 for $249,990 on September 20, 2007 (from Marsh Harbour Associates, LTD to Smacview), yet failed to analyze the prior sale history of Comparable Sale 5 vis-a-vis the $$320,000 sale from Smacview to Joel Calixte on September 25, 2007. 31. Respondent made the following errors or omissions in Report 4: A) Respondent checked the box that he did analyze the sales contract for the Subject Property, but provided no meaningful analysis other than to state, “the subject contract appears to be fully executed by both parties;” B) Respondent’s work file failed to contain a copy of the sales contract; C) Respondent misstated the one unit housing trends as stable property values, demand/supply in balance/ and 3-6 months marketing time; D) The sale from Smacview to Livana Miracle was for $255,000, with the date of contract stated as 12/10/07; E) Respondent’s work file contained a copy of the deed dated February 20, 2008 for the sale of Subject Property 4 from Marsh HAFREAB\noblet.doc 8 FDBPR v. John Michael Noblet Case No. 2009018478 Administrative Complaint Harbour Associated, LTD to Smacview for $178,141, a copy of which is attached hereto an incorporated herein as Administrative Complaint Exhibit 12; F) Respondent provided no analysis for why Subject Property 4 would have increased in value $76,859 or why the sale was shown as by Smacview as the owner of public record, when Smacview had not yet acquired ownership; G) Respondent listed the neighborhood boundaries for Subject Property 4's neighborhood much more expansively (and thereby included within those boundaries distinctly different neighborhoods) than those boundaries listed for Subject Property 1, which was in the same project as Subject Property 4; H) Respondent described the roof surface inconsistently as ‘“s./tile’; I) Respondent failed to indicate whether Subject Property 4 had a garage on page 1, but listed open parking on page 2; a) Respondent’s comments in stating “the subject had new kitchen cabinets, appliances, tile flooring, new fixtures in all bathrooms” were misleading in light of the fact Subject Property 4 was a vacant, new townhome; K) Respondent’s work file failed to contain any documentation 4 fOr the alleged 33 comparable listings and the alleged 17 potential H:\FREAB\noblet.doc 9 FDBPR v. John Michael Noblet Case No. 2009018478 Administrative Complaint comparable sales; L) Respondent checked the box indicating his research did reveal sales or transfers of the Subject Property, but stated in the grid below “sales info unavailable,” which was false considering the copy of the deed from Marsh Harbour Associates, LTD to Smacview in Respondent’s work file; M) Respondent disclosed a prior sale of Comparable Sale 1 for $192,780 on August 29, 2007 (from Marsh Harbour Associates LTD to Smacview per the deed in Respondent’s work file), but failed to analyze the prior sale history of Comparable Sale 1 vis-a-vis the $260,000 sale from Smacview to Frantz Toussaint on September 5, 2007 (per the deed in Respondent’s work file); N) Respondent disclosed an August 2007 prior sale of Comparable Sale 2 for $210,980 (from Marsh Harbour Associates, LTD to Smacview per the deed in Respondent’s work file), but failed to analyze the prior sale history of Comparable Sale 2 vis-a-vis the $$255,000 sale on March 13, 2008 to Taleran Derival as per the deed in Respondent’s work file; ©) Respondent disclosed a prior sale of Comparable Sale 3 for $192,780 on August 8, 2007 (from Marsh Harbour Associates, LTD to Smacview per the deed in Respondent’s work file), but failed to analyze the prior sale history of Comparable Sale 3 vis-a-vis the erator amine titi oe H:\FREAB\noblet.doc 20 FDBPR v. John Michael Noblet Case No. 2009018478 Administrative Complaint $260,000 sale from Smacview to Pierre Jude on August 14, 2007 (per the deed in Respondent’s work file); P) Respondent disclosed a prior sale of Comparable Sale 4 for $172,115 (but had no documentation in the work file to support the sale) yet failed to analyze the prior sale history of Comparable Sale 4 vis-A-vis the alleged $255,000 sale from Smacview to Raphael Guerold and had no documentation in the work file to support that sale other than the first page of the sales contract dated January 15, 2008-Respondent listed Comparable Sale 4 as “pending” in Report 4. As of the date of Petitioner’s investigation, Comparable Sale 4 has never sold; Q) Respondent disclosed “sales info unavailable” as to prior sales of Comparable Sale 5, which Respondent showed as “pending” for $255,000 and maintained in his work file the first page of a sales contract dated January 16, 2008 for a sale to Bernaud Rosalva from Condos Development, Inc (not Smacview) ; R) Respondent disclosed a prior sale of Comparable Sale 6 for $190,900 in August 2007 (actually on September 24, 2997 from Sonoma Bay, Inc to Smacview per the deed in Respondent’s work file), but failed to analyze the prior sale history of Comparable Sale 6 vis- a-vis the $290,000 sale from Smacview to Luckner St. Jour on September 25, 2007 (per the deed in Respondent’s work file). PPR emigre la ace H:\FREAB\noblet.doc 21 FDBPR v. John Michael Noblet Case No. 2009018478 Administrative Complaint 32. In developing the Cost Approach valuations for the four Subject Properties, Respondent alluded to deriving the site valuations from the “abstraction” method when the correct terminology is “extraction.” Respondent lacked data in the work file to support land extraction values. 33. Likewise, Respondent’s work file lacked Marshall and Swift documentation to support Cost Approach valuation for the four Reports. 34. Respondent failed to reconcile the data within the Sales Comparison and Cost Approach methods used and to reconcile the applicability or suitability of the two approaches, and made inappropriate reference to the Income Approach, which was not computed for the four Reports. 35. Respondent falsely certified to the intended user of the Reports that he had performed the appraisal in accordance with the requirements of the Uniform Standards of Professional Appraisal Practice (USPAP) that were in place at the time the appraisal report was prepared. 36. 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. 37. Respondent falsely certified that he verified from an H:AFREAB\noblet.doc FDBPR v. John Michael Noblet Case No. 2009018478 Administrative Complaint independent source all information in the Reports that was provided by parties who have a financial interest in the sale or financing of the subject property. 38. Respondent used the improper designation in signing the Reports. COUNT ONE Based upon the foregoing, Respondent is guilty of fraud, misrepresentation, culpable negligence, or breach of an implied contract in any business transaction in violation of Section 475.624(2), Florida Statutes. COUNT TWO Based upon the foregoing, Respondent is guilty of having failed to exercise reasonable diligence in developing an appraisal report in violation of Section 475.624(15), Florida Statutes. COUNT THREE Based upon the foregoing, Respondent is guilty of failure to retain records for at least five years of any contracts engaging 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. H:\FREAB\noblet.doc 23 FDBPR v. John Michael Noblet Case No. 2009018478 Administrative Complaint COUNT FOUR Based upon the foregoing, Respondent is guilty of failing to utilize the appropriate appraiser designation in violation of Rule 61J1-7.001, Florida Administrative Code and Section 475.622, 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 "6247" Florida Statutes and Rule 61 002, Florida H:\FREAB\noblet.doc 24 FDBPR v. John Michael Noblet Case No. 2009018478 Administrative Complaint Administrative Code. The penalties which may be imposed for violation(s) of Chapter 455 of the Florida Statutes, depending upon the severity of the offense(s), include: revocation of the license, registration, or certificate; suspension’ of the license, registration, or certificate for a period not to exceed ten (10) years; imposition of an administrative fine of up to $5,000 for each count or offense; imposition of investigative costs; issuance of a reprimand; imposition of probation subject to terms including, but not limited to, requiring the licensee, registrant, or certificate holder to complete and pass additional appraisal education courses; publication; restriction of practice; injunctive or mandamus relief; imposition of a cease and desist notice; or any combination of the foregoing which may apply. See Section 455.227, Fla. Statutes and Florida Administrative Code Rule 61071-8.002. H:\FREAB\noblet.doc 25 FDBPR v. John Michael Noblet Case No. 2009018478 Administrative Complaint SIGNED this 9 day of Feb. , 2010. CHARLIE LIEM, Interim Secretary Department of Business and Professional Regulation PrsZ_9~O 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: 2/10 PCP MEMBERS: FG/FO SESE ete nah ok anaes, Soothing ng SARL SWB auto cay bse H:\FREAB\noblet.doc 26 FDBPR v. John Michael Noblet Case No. 2009018478 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. 55 se Aik abi SAAB 85 H:\FREAB\noblet.doc 27 Suncoast Appraisers (954) 341-7775 File No. MiNO22208] Page #3] Uniform Residential Appraisal Report File # MNO22208 appraisal report is to provide the ‘ender/ctient with an accurate, and adequately supported, opinion of the market value of the subject property. Zp Code 33404-6457 ‘The purpose of this summa Property Address 14960 FLAMINGO PLACE 4803 City RIVERA BEACH State_ FL Sorrower_ MIRACLE, LIVANA Owner of Public Record_SMACVIEW, INC. County PALM BEACH. Legal Description MARSH HARBOUR LT 3 BLK 29 Assessor's Parcel # 56-43-42-31-30-029-0030 Tax Year_2007 RE. Taxes $1,375.00 eighborioad Name MARSH HARBOUR Map Reference 42-43-34 Gensus Tract. 0014.04 __ Special Assessments $0.00 X PUD HOA$ 140.00 per year 3X per month 's the subject property currently affered for sale or has it been offered for sale in the twelve manths prior to the effective date of this appraisal? Report data source(s) used, offering price(s}, and date(s). — MLS / OWNER 1 2X did 7 aid not analyze the contract for sale for the subject purchase transaction. Explain the results of the analysis of the contract for sale or why the analysis was not performed. THE SUBJECT IS CURRENTLY UNDER CONTRACT FOR $240,000. fj Contract Price $ 240,000 Date of Contract 1/24/08 \s the property seller the owner of public record? Yes. SX No_ Data Source(s) PUBLIC. RECORDS £4 is there any financial assistance (loan charges, sale concessions, gift or downpayment assistance, etc.) to be paid by any party on behalf of the borrower? - X Yes No if Yes, report the total dollar amount and describe the items to be paid. 7,200 SELLER WILL CONTRIBUTE 3% OF THE PURCHASE PRICE TOWARDS BUYERS CLOSING COST. If Note: Race and the racial Composition of the neighborhood are riot appraisal factors, Neighborhood Characteristics One-Unit Housing Trends One-Unit Housing | Present Land Use % Urban Suburban Rural Property Values "increasing 2X Stable Declining PRICE AGE | One-Unit 50% PA Buitt-Up DX Over 75% 25-75% ‘Under 25% Demand/Supply _— Shortage X In Balance Over Supply |_$ (000) ( 2-4 Unit Fey Growth "i Rapid XX Stable Siow Marketing Time Under 3mihs >< 3-6mths "Over 6 mths} 150 Low Mult-Farnily Fe ‘Neighborhood Boundaries “BLUE HERON BLVD TO THE NORTH, BEE LINE HWY TO THE SOUTH 320__Hig Commercial 10% | CONGRESS TO THE EAST, I-95 TO THE WEST 270+/~ Pred, 25+/~ | Other fej Nelgnborhood Descrintion NO ADVERSE FACTORS ARE KNOWN TO THE APPRAISER WHICH WOULD AFFECT THE MARKETABILITY OF THE fi SUBJECT. MOST MARKET-PREFERRED AMENITIES, SUCH AS SCHOOLS, SHOPPING, PUBLIC TRANSPORTATION AND OTHER SUPPORT FACILITIES, INCLUDING RECREATION AND EMPLOYMENT ARE LOCATED WITHIN REASONABLE PROXIMITY TO THE SUBJECTS IMMEDIATE NEIGHBORHOOD. Market Conditions (cluding support for the above conclusions) THE APPRAISER HAS CONSIDERED RELEVANT COMPETITIVE LISTINGS AND/OR CONTRACT OFFERINGS IN THE PERFORMANCE OF THIS APPRAISAL, NORMAL MARKETING TIME: 90-180 DAYS, TYPICAL SP/LP RATIO: 90-95%. CONVENTIONAL FINANCING IS AVAILABLE AT INTEREST RATES AND DISCOUNTS MOST BUYERS FIND ATTRACTIVE. Dimensions SYBJECT TO SURVEY - NOT PROVIDED Area 800 SF Shape_ RECTANGULAR View RESIDENTIAL Specitic Zoning Classification RM-15 Zoning Description RESIDENTIAL MULTIFAMILY J Legal Nonconforming (Grandfathered Use) No Zoning — illegal (describe) ct property as improved (or as proposed per plans and specifications) the present use? Yes __No_If No, describe \s the highest and best use ot subje Utilities Public Other (describe) Public Other (describe) Off-site Improvements - Type Pubic Private Electricity XL Water x. Street ASPHALT oe Xx —__X NONE Sanitary Sewer X Alley NONE FEMA Special Flood Hazard Area 5< Yes__No__ FEMA Flood Zone Aa FEMA Map #_1251420002D FEMA Map Date_9/30/1982 Are the utilities and off-site Improvements typical for the market area? X Yes No__{f No, describe Are there any adverse site conditions or external factors (easements, encroachments, environmental conditions, land uses, atc,)? _Yes 3X No if Yes, describe Foundation 2< One | One with Accessory Unit [XX Concrete Slab Craw! Space TILE/CRPT/GD 2 Full Basement Partial Basement Walls ORYWALLIGDF ee Det_ x Att ©! S-Det/End Unit t JBasement Area sq.ft.|Roof Surface S. TILE/GD X Existing {7 Proposed 7 Under Const [Basement Finish % [Gutters & Downspouts NONE. ign (Style) TOWNHOUSE ~ Sump Pump Tim/Finish _WOOD/GD TILE/GD PAVERS | Garage —# of Cars, Carport Freplace(s) # Fence SX Porch _Dther Describe the condition of the Droperty (inctuding needed repairs, deterioration, renovations, Temodeling, etc.). NO FUNCTIONAL OR EXTERNAL OBSOLESCENCE NOTED AT TIME OF INSPECTION, THE SUBJECT IS IN NEW CONDITION, AND IS CONSIDERED TO HAVE A FUNCTIONAL FLOOR PLAN AND NO OBVIOUS REPAIRS WERE NEEDED. Are there any physical deficiencies or adverse conditions that affact the livability, soundness, or structural integrity of the property? Yes_X No_ if Yes, describe Does the property generally conform to the neighborhood (functional utility, style, condition, use, construction, ete,)? X Yes No _if'No, describe tor page) 69 Freddie Mac Form 70 March 2005 Page 1 of 6 Fannie Mae Form 1004 March 2005 Form 1004 — "WinTOTAL” appraisal software by ala mode, Inc. — 1-800-ALAMODE EXHIBIT. (File No. MNO22208) Page #4) Uniform Residential Appraisal Report File # MNO22208 41 comparable properties currently offered for sale in the subject neighborhood ranging in 21 There are There are Address 1960 FLAMINGO PLACE 48092048 MARSH HARBOUR DR [982 LUCAYA DRIVE 3628 OLEANDER TERRACE RIVERA BEACH, FL 33404-6457 |RIVERA BEACH, FL 33404 RIVERA BEACH, FL 33404 RIVERA BEACH, FL 33404 Proximity to Subject 0.02 miles E 0.05 miles E 1.33 miles NE Sale Price $ 240,000 $ 240,000] _i|s 255,000] Sale Price/Gross Liv. Area $204.26 sqit|$ 204.26 sqft. $214.83 sqft. $190.33 sqft Data Source(s) SALES OFF /PROP APPR. SALES OFF./PROP APPR. SALES OFF /HUD STMNT Verification Source(s) ~.___|V. INSPECTION. V. INSPECTION V. INSPECTION VALUE ADJUSTMENTS DESCRIPTION DESCRIPTION | +(-) $Adustment | DESCRIPTION | +(-)$ Adjustment | DESCRIPTION _| Sales of Financing CONV MTG. CONV MTG. CONV MTG. : 40/15/07 4/1008 12/24/07 [RESIDENTIAL [RESIDENTIAL RESIDENTIAL RESIDENTIAL FEE SIMPLE [FEE SIMPLE FEE SIMPLE FEE SIMPLE 800 SF 800 SF 800 SF 800 SF RESIDENTIAL _ {RESIDENTIAL LAKE -10,000/RESIDENTIAL TOWNHOUSE _|TOWNHOUSE TOWNHOUSE [TOWNHOUSE GOOD GOOD GooD GooD e 1 1 1 1 Condition GooD GOOD GOOD GOOD Above Grade Total {adrms.] Baths | Total tBarms.| Baths Total [Bdrns.] Baths Total [Barms.| Baths Room Count 4|2 [2s] 4] 2 [2s 4] 2 [25 5 [2 las 4,175 sg.tt 41,175 sat. 1,187_squtt al 4,261 sqft 9 NIA NA NIA NIA Rooms Below Grade WA NIA N/A NIA am Functional Utility TYPICAL TYPICAL. TYPICAL TYPICAL Bey Heating/Cooling CENTRAL CENTRAL OICENTRAL O|CENTRAL Fe Eneray Efficient Items STANDARD ___|STANDARD. STANDARD STANDARD Fr Garage/Carport OPEN PARK {OPEN PARK 41 CAR GAR 5,000] OPEN PARK Porch/Patio/Deck PATIO. PATIO. PATIO PATIO. | 3] Net Adjustment (Total) + _- 8 + x: 8 -15,000| + - |S Adjusted Sale Price Net Adi, % Net Ad, = 5.9% Net Adj. % Comparables Gross Adj %1S 240,000|Gioss Adj. 5.9% history of the subject property and comparable sales. If not, explain My research 5¢i did sn: did not reveal any prior sales of transfers of the subject property for the three years prior to the effective date of this appraisal. Data Source(s)_ PUBLIC RECORDS My research (Xi did“ did not Teveal any prior sales or transters of the comparable sales for the year prior to the date of sale of the comparable sale, Data Source(s) PUBLIC RECORDS Report the results of the research and analysis of the prior sale or transfer history of the subject property and comparable sales (report additional prior sales an page 3). ITEM _ SUBJECT COMPARABLE SALE #1 | COMPARABLE SALE #2 COMPARABLE SALE #3 12/07 140/07 10/2007 12/07 Price of Prior Sale/Transfer [156,275 164,500 472,115 170,990 Data Source(s) [PUBLIC RECORDS PUBLIC RECORDS PUBLIC RECORDS PUBLIC RECORDS Effective Date of Data Source(s) [2/22/2008 2/22/2008 2/22/2008 2/22/2008 Analysis of prior sale or transfer history of the subject property and comparable sales RELEVANT SALES HISTORY OF SUBJECT AND COMPARABLES LISTED ABOVE. Summary of Sales Comparison Approach ALL SALES ARE CONSIDERED THE MOST RECENT AND COMPARABLE FOR ANALYSIS. ALL SALES WERE SIMILAR IN DESIGN, CONSTRUCTION, QUALITY AND APPEAL. ALL SALES ARE CONSIDERED RELIABLE INDICATORS OF THE SUBJECTS ESTIMATED MARKET VALUE FOR THE SUBJECT. SALES 1 & 2 ARE FROM THE SUBJECT PROJECT AND SALE 3 |S A SIMILAR UNIT FROM A COMPETEING PROJECT. ALL SALES WERE GIVEN CONSIDERATION IN THE DERIVATION OF THE SUBJECTS MARKET VALUE. son Approach$ 240,000 Indicated Vaiue by: Sales Comparison Approach$ 240.000 Cost Approach (if developed)$ 239 422 Income Approach (it developed) $ COST APPROACH IS NOT RELIABLE FOR EXISTING PROPERTIES. INCOME APPROACH IS NOT USED FOR NON INCOME PRODUCING Fay PROPERTIES. THE SALES COMPARISON APPROACH IS GIVEN MOST CONSIDERATION, SINCE IN BEST REFLECTS TYPICAL ACTIONS E OF BUYERS AND SELLERS. . Veena This appraisal is made XJ “asis", . subject to completion per plans and specifications on the basis of a hypothetical condition that the improvements have been ¢ completed, 1] subject to the following repairs or alterations on the basis of a hypothetical condition that the repairs or alterations have been completed, or "subject to the following required inspection based on the extracrdinary assumption that the condition or deficiency does not require alteration or repair: Based on a complete visual inspection of the interior and exterior areas of the cul lect propery, defined sco of work, statement of assumptic he conditions, and Spprlaer’s cettiteation, nian opinion of the market value, as defined, of e real property that ate subject of this report is $___240,000 as of 2/26/08 which is the date of inspection and the effective date of this appraisal. Freddie Mac Form 70 March 2005 Page 2 of 6 Fannie Mae Form 1004 2005 PASE pp OF Form 1004 — “WinTOTAL" appraisal software by ala mode, inc, — 1-800-ALAMODE YEISIT pacro© { tnd iw 13. HE, RATIVE COMPLAINT ee ile No. MNO22208] Page #5 Uniform Residential Appraisal Report File # MNO22208 ADDITIONAL COMn COST APPROACH TO VALUE (not required by Fannie Mae) Provide adequate information for the lender/client to replicate the below cost figures and calculations. Support for the opinion of site value (summary of comparable land sales of other methods for estimating site value) DUE TO THE LACK OF RECENT LAND SALES IN THE SUBJECT MARKET AREA THE SITE VALUE WAS DETERMINED BY THE ABSTRACTION METHOD. 8 ESTIMATED [Xj REPROOUCTION OR _ REPLACEMENT COST NEW JOPINION OF SITE VALUE. sss 3 Source of cost data MARSHALL & SWIFT DWELLING 1,175 GR@$ 125.00 Ed Qually rating from cost service AVG Effective date of cost data 12/07 oe SR OS & Comments on Cost Approach (gross living area calculations, depreciation, etc.) ql DEPRECIATION BASED ON AGE/LIF METHOD COST ESTIMATE Garage/Carport ECONOMIC LIFE =60 YEARS, SUBJECT HAS A REMAINING Total Estimate of Cost-New ECONOMIC LIFE OF 59 YEARS.) THE COST APPROACH IS Less Physical DEVELOPED FOR MARKET VALUE ONLY, AND IS NOT TO BE USED {Depreciation 2,453) FOR INSURABLE VALUE. Depreciated Cost of Improvements As-is* Value of Site Improvements... 59 Years | INDICATED VALUE BY COST APPROACH INCOME APPROACH TO VALUE (not required ay Fannie Mae) ; . X Gross Rent Multiplier Indicated Value by Income Approach BY summary of Income Approach (including support for market rent and GRM) PROJECT INFORMATION FOR PUDs (If appilcable) is the devel devlparbuiderk incontol of the Homeowners” Associaton (HOA)? XX Yes No _Unittype(s) “Detached 3< Attached Provide the following information for PUDs ONLY if the developer/bulider is in control of the HOA and the subject property Is an attached dwelling unit, omy Legal Name at Prot MARSH HARBOUR Total number of units 402 Total number of units sold 290 e Total number of units for sale 112 Data source(s) SALES CENTER f=4 Was the project created uate conversion of sis eon in aPuD? _ Yes_< No if Yes, date of conversion. J Does the project contain any mult-dwelling units? fes_X< No DataSource SALES CENTER =4 Are the units, comnman elements, and recreation facies canal X Yes“ No_if No, describe the status of completion, ‘Are the cammon elements leased to or by the Homeowners’ Association? Yes 2% No_If Yes, describe the rental terms and options. Describe common elements and recreational facies. CLUBHOUSE, POOL, TENNIS, GREENBELTS Freddie Mac Form 70 March 2005 Page 3 of 6 Form 1004—"WinTOTAL* appraisal software by a la made, inc. — 1-800-ALAMODE EXHIQT. | a eee I FileNo.MNO22208 Page #6 Uniform Residential Appraisal Report File # MNO22208 This report form is designed to report an appraisal of a one-unit property or a one-unit Property with an accessory unit; including a unit in a planned unit development (PUD). This report form is not designed to report an appraisal of a manufactured home or a unit in a condominium or 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 cn the complexity of this appraisal assignment. Modifications or deletions to the certifications are also not permitted. However, additional certifications that do nat 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 property, (2) inspect the neighborhood, (3) inspect each of the comparable sales from at least the street, (4) research, verify, and analyze data from reliable public and/or private sources, and (5) report his or her analysis, opinions, and conclusions in this appraisal report. 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/ctient. DEFINITION OF MARKET VALUE: The most probable price which a property should bring in a competitive and open market under all conditions requisite ta a fair sale, the buyer and seller, each acting prudently, knowledgeably and: assuming the price is not affected by undue stimulus. Implicit in this definition is the consummation of a sale as of a specified date and the passing of title from seller to buyer under conditions whereby: (1) buyer and seller are typically motivated; (2) both parties are well informed or well advised, and each acting in what he or she considers his or her own best interest; (3) a reasonable time is allowed for exposure in the apen 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 sald 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 readily 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 lender that is not already involved in the property or transaction. Any adjustment should not be calculated on a mechanical dollar for dollar cost of the financing or concession but the dollar amount of any adjustment should approximate the market's reaction to the financing 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 following assumptions and limiting conditions: 1. The appraiser. will not be responsible for matters of a legal nature that affect either the property being appraised or the title to it, except for information that he or she became aware of during the research involved in performing this appraisal. The appraiser assumes that the title is good and marketable and will not render any opinions about the title. 2. The appraiser has provided a sketch in this appraisal report to show the approximate dimensions of the improvements. the sketch is included only to assist the reader in visualizing the property and understanding the appraiser's determination S size. 3. The appraiser has examined the available flood maps that are provided by the Federal Emergency Management Agency (or other data sources) and has noted in this appraisal report whether any portion of the subject site is located in an identified Special Flood Hazard Area. Because the appraiser is not a surveyor, he or she makes no guarantees, express or implied, regarding this determination. 4. The appraiser will not give testimony or appear in court because he or she made an appraisal of the property in question, unless specific arrangements to do so have been made beforehand, or as otherwise required by law. 5. The appraiser has noted in this appraisal report any adverse conditions (such as needed repairs, deterioration, the presence of hazardous wastes, toxic substances, etc.) observed during the inspection of the subject property or that he or she became aware of during the research invalved in performing the 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 Tepairs, 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 conditians and makes no guarantees or warranties, express or implied. The appraiser will not be responsible for any such conditions that do exist or for any engineering or testing that might be required to discover whether such conditions exist. rt in the field of environmental hazards, this appraisal report must not be considered as assessment of the property. co yee 6. The appraiser has based his or her appraisal report and valuation conclusion for an appraisal that is subject to satisfactory completion, repairs, or alterations on the assumption that the completion, repairs, or alterations of the subject property will EXHIBIT # Ls Fannie Mae Form TOU Freddie Mac Form 70 March 2005 Page 4 of 6 be performed in a professional manner. ADMINISTRATIVE COMPLAINT E at Z _ tha) ASOT 4 Farm 1004 — “WinTOTAL” appraisal software by a fa moda, inc. — 1-800-ALAMODE EXHISIT PAGE ZO # [File No. MNO22208] Page #7) File # MNO22208 Uniform Residential 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. | performed a complete visual inspection of the interior and exterior areas of the subject property. | reported the condition of the improvements in factual, specific terms. | identified and reported the physical deficiencies that could affect the livability, soundness, or structural integrity of the property. 3. | performed this appraisal in accordance with the requirements of the Uniform Standards of Professional Appraisal | Practice that were adopted and 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. | 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, unless otherwise indicated in this report. 5. | researched, verified, analyzed, and reported on any current agreement for sale for the subject property, any offering for sale of the subject property in the twelve months prior to the effective date of this appraisal, and the prior sales of the subject property for a minimum of three years prior to the effective date of this appraisal, unless otherwise indicated in this report. 6. | researched, verified, analyzed, and reported on the prior sales of the comparable sales for a minimum of one year pricr to the date of sale of the comparable sale, unless atherwise indicated in this report. 7. | selected and used comparable sales that are locationally, physicaily, 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 muittiple 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 correct. 14. | have taken into consideration the factors that have an impact on value with respect to the subject neighborhood, subject property, and the proximity of the subject property to adverse influences in the development of my opinion of market value. | 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 appraisai report and, to the best of my knowledge, ail statements and information in this appraisal report are true and correct. 16. | stated in this appraisal report my own personal, unbiased, and professional analysis, opinions, and conclusions, which are subject only to the assumptions and iimiting conditions in this appraisal report. 17. 1 have no present or prospective interest in the property that is the subject of this report, and | have no present or Prospective personal interest or bias with respect to the participants in the transaction. | did not base, either partially or 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. 18. My employment and/or compensation for performing this appraisal or any future or anticipated appraisals was not conditioned on any agreement or understanding, written or otherwise, that | would report (or present analysis supporting) a predetermined specific value, a predetermined minimum value, a range or direction in value, a value that favors the cause of any party, or the attainment of a specific resuit or occurrence of a specific subsequent event (such as approval of a pending Mortgage loan application). 19. | personally prepared all conclusions and opinions about the real estate that were set forth in this appraisal report. If | relied on significant real property appraisal assistance from any individual or individuals in the performance of this appraisal or the preparation of this appraisal. report, | have named such individual(s) and disclosed the specific tasks performed in this appraisal report. | certify that any individual so named is qualified to perform the tasks. | have not authorized anyone to make a pane eitty any item in this appraisal report; therefore, any change made to this appraisal is unauthorized and ! will take no responsi ir 20, | identified the lender/client in this appraisal report who is the individual, organization, or agent for the organizgiibanhan lS TRATIVE COMPLAINT. ordered and will receive this appraisal report. EXHIBIT #_f metre teen s2An- Form 1004 — "WinTOTAL" appraisal software by a la mode, inc, — 1-800-ALAMODE Qaftoii ee of piers (oer Freddie Mac Form 70 March 2005 Page 5 of 6 Fannie Mae Fors 00¢-March 2005 5 ig . (File No. MNO22208] Page #8] Uniform Residential Appraisal Report File # MINO22208 21. The lender/client may disclose or distribute this appraisal report to: the borrower; another lender at the request of the borrower, the mortgagee or its successors and assigns; mortgage insurers; 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, goverment 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 a copy or representation of my signature, the appraisal report shall be as effective, enforceable and valid as if a paper version of this appraisal report were delivered containing my original hand written signature. 25. Any intentional or negligent misrepresentation(s) contained in this appraisal report may result in civil liability and/or criminal penalties including, but not fimited 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 is 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 report was prepared. . 5. If this appraisal report was transmitted as an “electronic record” containing my “electronic signature,” as those terms are defined in applicable federal and/or state laws (excluding audio and video recordings), or a facsimile transmission of this appraisal report containing a copy or representation of my signature, the appraisal report 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 — MIKE NOBLET SUPERVISORY APPRAISER (ONLY IF REQUIRED) Signature fe Signature Name MIKE NOBLET ST.CERT.RES.REA. Name Company Name SUNCOAST APPRAISERS Company Name Company Address 7550 NW 61 TERRACE, PARKLAND, FL 33067 Company Address Telephone Number (954) 341-7775 Telephone Number Email Address SUNCOAST42@BELLSOUTH.NET Email Address Date of Signature and Report 2/27/08 Date of Signature Effective Date of Appraisal 2/26/08 State Certification # State Certification # _RD3827 or State License # or State License # State or Other (describe) State # Expiration Date of Certification or License State FL Expiration Date of Certification or License 11/30/2008 SUBJECT PROPERTY ADDRESS OF PROPERTY APPRAISED = Did not inspect subject property 1860 FLAMINGO PLACE 4803 :_ Did inspect exterior of subject property from street RIVERA BEACH, FL 33404-6457 __ Date of Inspection - APPRAISED VALUE OF SUBJECT PROPERTY $ 240,000 Did inspect interior and exterior of subject property LENDER/CLIENT Date of inspection Name : ; Company Name HARTFORD MORTGAGE COMPANY COMPARABLE SALES Company Address 3600 S STATE ROAD 7, STE 220, MIRAMAR — Did not inspect exterior of comparable sales from street FL 33023 — Did inspect exterior of comparable sales from street Email Address ADEBAYOMARLENE@YAHOO.COM ~ Date of inspection ADMINISTRATIVE COMPLAINT. c Freddie Mac Form 70 March 2005 Page 6 of 6 Fannie Mae Form 1004 Farm 1004 — *WinTOTAL" appraisal software by ala mode, inc. — 1-800-ALAMODE EXERSIT. | Swe) ——w Uniform Residential Appraisal Report File # MNO22208 FEATURE SUBJECT COMPARABLE SALE #4 COMPARABLE SALE #5 COMPARABLE SALE #6 Address 1960 FLAMINGO PLACE 4809 1954 FLAMINGO PLACE RIVERA BEACH, FL 33404-6457 |RIVERA BEACH, FL 33404-6457 | _ Proximity t Subject 0.03 miles SW _ Sale Price s 240,000] $ 240,000{ $ $ Sale Prce/Gross Liv. Area |[$ 204.26 sqift|$ 204.26 sqit| $ Sait, s sat Data Source(s) Tt SALE OFFICE | Verification Source(s) V. INSPECTION j}-_———____- VALUE ADJUSTMENTS DESCRIPTION DESCRIPTION | +(-) $ Adjustment | DESCRIPTION | +() $ Adjustment | DESCRIPTION | -+(-) $ Adustment Sales or Rnancing Concessions Oata of Sale/Time PENDING a Location RESIDENTIAL [RESIDENTIAL — Eq LeaseholdFee Simple |FEE SIMPLE [FEE SIMPLE —_|_ Site 800 SF 800 SF =a View : RESIDENTIAL_|RESIDENTIAL Design (Styie) [TOWNHOUSE [TOWNHOUSE Quality of Construction GOOD GooD Actual Age _ 1 1 F4 condition GOOD GOOD. tas Fa fs] Above Grade Total [Bdrms.| Baths | Total sam Baths Total “es Baths a is .{ Baths Room Count 4| 2 fas] 4[2 [25 Gross Living Area 1175 sqft] 1,178 sat! sat sft] Basement & Finished NA NIA Rooms Below Grade {N/A NA + Functional Utity TYPICAL FUNCTIONAL Heating/Cooling CENTRAL CENTRAL Energy Efficient items ISTANDARD __|STANDARD i Garage/Carport OPEN PARK _|OPEN PARK Porch/Patio/Deck PATIO. PATIO i 1 Net Adjustment (Total) _t+ _- [ + is —+ [8 Adjusted Sale Price Net Adj. % Net Adj. % Net Adj. Lo of bles ‘Gross Adj. % I$ 240,000) Gross Adj. %IS Gross Adj. %i$ Report the results of the research and analysis of the prior sale or transfer history of the subject property and comparable sales (report additional prior sales on page 3). TEM SUBJECT COMPARABLE SALE #4 COMPARABLE SALE #5 COMPARABLE SALE #6 Date of Prior Sale/Transfer 412/07 SALES INFORMATION Price of Prior Sale/Transter 156,275 UNAVAILABLE Data Source(s) PUBLIC RECORDS PUBLIC RECORDS Effective Date of Data Source(s) [2/22/2008 2/22/2008 Analysis of prior sale or transfer history of the subject property and comparable sales THE SUBJECTS 36 MONTH SALES HISTORY AND THE =4 COMPARABLES 12 MONTH SALES HISTORY IS USTED ABOVE. Analysis/Comments COMPARABLE 4 1S A PENDING SALE OF THE SAME MODEL FROM THE SUBJECT PROJECT. ATIVE COMPLAINT —__PAGE OF Freddie Mac Form 70 March 2005 Fannie Mae Form 1004 March 2005 et tio 3 men Form 1004(AC) — *WinTOTAL" appraisal software by a a mode, inc. — 1-800-ALAMODE EXHIS m3 pass 266 Tele No. 022208) Page #10F Floor Plan THE HARBOUR GRANO ROG ar x2 FIRST FLOOR SECOND FLOOR THE HARBOUR Pixs Floor 887 sar Breow Froot eats ey 3 TaraL we RAS a. er xX . Envay Poncn SS a0. rr MARSH HARBOCIR Pe aa a0.rr lewsboaes awd eit as Foran 1274 80. Fr. ADMINISTRATIVE COMPLAINT. EXHIBIT # pace 8 OF Form SCNLGL—“WinTOTAL" appraisal software by a la mode, inc. ~ 1-800-ALAMODE EXHIBIT {3 as sdb? Tle NoMNO22208I Page #1 Location Map : Borrower MIRACLE, LIVANA —____| Forty A ress_ 1960 FLAMINGO PLACE 4803 RIVERA BEACH County PALM BEACH State FL. Zip Code_33404-6457 oie @ 2 a g lune Isles & g ounet = 3 : Fy Fa ‘ 3 = ; * Fy a WurO Re wat : 2 2 we e Paim Beach 2 3 . Gardens _ - = = 2 in Ryn ahd” 4 4 — i a Bid 7861 Pa mas RAB Mt z Jahn 0 z u MacArthur 3 i Seach ees S ’ State [ Boo Recreation Fi >i é Area Atl ? i a Fe a. Poa LOM Ey CEB, al 2 dy ATA 5%, 3) ee , Et % a Vigne Or 8 eae ey ; in 2 Recnesna Rd Fi North Paim Beach 09)” OF Hertuake Bint > Bowe , = 3 : Ail g: Nefthinks Bit “1850! g {FAO} é Fa g 3 ¢ i 3 vs 4 « & Parrott Or Ss 2 i q ” wtp : i “hy Panay bake Park 3628 OLEANDER TERRACE g + x 1.33 miles NE Palm Beach Isies Comparable # 4 Palm Beach z 1954 FLAMINGO PLACE Shores z 0.03 miles SW z 2 ge 23 = a Form MAP.LOC — “WinTOTAL* appraisal saftware by a la mode, ine. — 1-800-ALAMODE evay 3 IT (3 PAGE Ps 263 File No. MNOZ2208] Page #12) Subject Photo Page $$ Borrower MIRACLE, LIVANA Property Address_ 1960 FLAMINGO PLACE 4803 City RIVERA BEACH County PALM BEACH State FL Zip Code 33404 Client Subject Front 1960 FLAMINGO PLACE 4803 Sales Price 240,000 Gross Living Area 1,475. Total Rooms 4 Total Bedrooms 2 Total Bathrooms 25 Location RESIDENTIAL View RESIDENTIAL Site 800 SF Quatity GOOD Age 1 Subject Rear Subject Street ADMINISTRATIVE COMPLAINT EXHIBIT 4- | ee pace _/0 oF Form PICPIX.SR — “WinTOTAL” appraisal software by a la mode, inc, — 1-800-ALAMODE File No. MNO22208} Page #13) Comparable Photo Page MIRACLE, LIVANA Address _1960 FLAMINGO PLACE 4803 RIVERA BEACH County PALM BEACH State FL. Zp Code 33404-6457 Comparable 1 2048 MARSH HARBOUR DR Prox, to Subject 0.02 miles E Sales Price 240,000 Gross Living Area 1,175 Total Rooms 4 Total Bedrooms 2 Total Bathrooms = 2.5 Location RESIDENTIAL View RESIDENTIAL Site 800 SF Quality GooD Age 1 Comparable 2 982 LUCAYA DRIVE Prox, to Subject 0.05 miles E Sales Price 255,000 Gross Living Area 1,187 Total Rooms 4 Total Bedrooms 2 Total Bathrooms 25 Location RESIDENTIAL View LAKE Site 800 SF Quality GoCoD Age 1 Comparable 3 3628 OLEANDER TERRACE Prox. to Subject 1.33 miles NE Sales Price 240,000 Gross Living Area 1,261 Total Rooms E Total Bedrooms 2 Total Bathrooms = 2.5 Location RESIDENTIAL View RESIDENTIAL, Site 800 SF Quality 6ooD Age 1 ADMINISTRATIVE COMPLAINT EXHI ‘amr # {| —______— OF ee Form PICPIX.CR — “WinTOTAL" appraisal software by a fa mode, inc. — 1-800-ALAMODE EXHIRIT_| (S Ser Comparable Photo Page Borrower MIRACLE, LIVANA Property Address_ 1960 FLAMINGO PLACE 4803 City RIVERA BEACH County PALM BEACH State FL Zip Code_33404-6457 Client Comparable 4 41954 FLAMINGO PLACE Prox. to Subject 0.03 miles SW Sales Price 240,000 Gross Living Area = 1,175 Total Roams 4 Total Bedrooms 2 Total Bathrooms = 2.8 Location RESIDENTIAL View RESIDENTIAL Site 800 SF Quality GOOD Age 4 Comparable 5 Prox. to Subject Sales Price Gross Living Area Total Rooms Total Bedrooms ‘Total Bathrooms Location View Site Quality Age Comparable 6 Prox. to Subject Sales Price Gross Living Area Tata! Rooms ADMINIS RAI WE. KUIMeLALNT exHipir fe PAGE __)U_ oF anor 13 pase? / f Form PICPIX.CR — "WinTOTAL" appraisal software by a la mode, inc. — 1-800-ALAMODE (Bae en Suncoast Appraisers (994) 341-7775 [File No. MNI21207] Page #5] Uniform Residential Appraisal Report ——__rie# mn121207 City RIVIERA BEACH Owner of Public Record SMACVIEW, INC. Legal Description SONOMA BAY LT 3 BLK 11 Assessor's Parcel # _56-43-42-30-35-011-0030 Tax Yeat_2007 RE. Taxes $_4,227.00 5 Neighborhood Name SONOMA BAY Map Reference 42-43-31 Census Tract 0013.01___ Pd Occupant Owner Tenant 3< Vacant Special Assessments $ N/A __ eX PUD —HOAS 178.00 peryear_3< per month E# Property Rights Appraised < Yes ____No Data Source(s) REAP - Fis there any financial assistance (loan charges, sale concessians, gift or downpayment assistance, etc.) to be paid by any party on behalf of the borrower? X Yes No oi Yes, report the total dotlar amount and describe the items to be paid. 7,200 SELLER WILL CONTRIBUTE 3% OF THE PURCHASE PRICE TOWARDS BUYERS CLOSING COSTS. One-Unit Housing Trends One-Unit Housing _| Present Land Use % Location Urban 5% Suburhan Rural Property Values Increasing > Stable _ Declining PRICE AGE Built-Up 3%; Over 75% 25-75% Under 25% [Damand/Supply __ Shortage > inBalance_—_ Over Supply | _$ (000) (yrs) X Stable Slow [Marketing Time _ Under d mths 3X 3-6 mths "Over 6 mths] 150 Low 0 _| Multi-Family NORTHLAKE TO THE NORTH, BLUE HERON TO THE SOUTH, OLD DIXIE 320 High 31_| Commercial fy HWY TO THE EAST, 195 TO THE WEST 250+ Pred 20+ | Other EMPLOYMENT ARE LOCATED WITHIN REASONABLE PROXIMITY TO THE SUBJECTS IMMEDIATE NEIGHBORHOOD. Market Conditions (including support for the above conclusions) THE APPRAISER HAS CONSIDERED RELEVENT COMPETITIVE LISTINGS AND/OR CONTRACT OFFERINGS iN THE PERFORMANCE OF THIS APPRAISAL NORMAL MARKETING TIME: 90-180 DAYS. TYPICAL SP/LP RATIO: 90-95%. CONVENTIONAL FINANCING IS AVAILABLE AT INTEREST RATES AND DISCOUNTS MOST BUYERS FIND ATTRACTIVE. Dimensions 20 X 40 Area_800 Sq.Ft. Shape RECTANGULAR View RESIDENTIAL Specific Zoning Classification RM-15. Zoning Zoning Compliance >< Legal Legal Nonconforming (Grandfathered Ust 's the highest and best use of subject property as improved (or as proposed per plans and specifications) the present use? X Yes No_If No, describe Utilities Public Other (describe) Public _ Other (describe) Off-site Improvements ~ Type Pl electicty Water = Strest_ ASPHALT _ bad Gas _ Sanitary Sewer X Alley FEMA Special Hood Hazard Area Yes_3< No__FEMA Flood Zone _B FEMA Map #_1201920145B FEMA Map Date_ 10/15/1982 Ara the utlties and off-site improvements typical for the market area? _. No_IfNo, describe Are there any adverse site conditions or external factors (easements, encroachments, environmental conditions, land uses, et)? __. Yess No ff Yes, describe materials/condition __._ Crawl Space Foundation Walls Roors TILE/CPT/GD ___ Partial Basement [Exterior Walls DRYWALL/GD. Roof Surface TrimyFinish WD/GD. Gutters & Downspouts METAL/GD. Bath Hoor TILE/GD Design (Style TWNHSE Ee i |Window Type Bath Wainscot TILE/GD Year Built i _ Storm Sastyinsulated_ YES/GD Car Storag None A F ‘Screens YES/GD LX Driveway — # af Cars 1 -. Woodstove(s) # Other [Fuel ELEC. |" Fireplace(s) # Fence Cooling 2X Central Air Conditioning Patio/Deck X Porch | __Individval ___ Other [ _. Pool Other Dishwasher >< Disposal >< Microwave Washer/Dryer 5 Rooms 2_ Bedrooms 2.5 Bath(s) 4,261 _ Square Feet of Gross Living Area Above Grade NONE NOTED Describe the condition of the property {including needed repairs, deterioration, renovations, remodeling, atc.). THE SUBJECT IS IN GOOD CONDITION WITH NO OBVIOUS REPAIRS NEEDED. UPGRADES INCLUDE: KITCHEN CABINETS, APPLIANCES, STACKABLE WASHER / DRYER, TILE DOWN. STAIRS. __Yes 3 No_if Yes, describe Are there any physical deficiencies or adverse condi EO TO aaa aR pp GE De SANE Rae Oo that affect the livability, soundness, or structural integrity of the property? Does the property generally contorm to the neighbarhoad (functional utifity, style, condition, use, construction, atts.)? OX Yes ___No_{fNo, describe SAace Freddie Mac Farm 70 March 2005 Page 1 of 6 Fannie Mae Form 1004 March 2005 Form 1004 — "WinTOTAL" appraisal software by ala mode, inc, ~ 1-800-ALAMODE SALVE CONF LALINT OF Exeipir_! Zz PAS 17 how, File No. iN121207/ Page #6) Uniform Residential Appraisal Report Fle # MN121207 33___ comparable properties currently offered for sale in the subject neighborhood ranging in price from $ 150,000 to$ 324,900 17___comparable sales in the subject neighborhood within the past twelve months ranging in sale price fram $ 170,000 to$ 320.000 FEATURE SUBJECT COMPARABLE SALE # + COMPARABLE SALE # 2 COMPARABLE SALE # 3 1951 HIBISCUS LANE 1976 ALAMANDA WAY 1953 GARDENIA COURT 1203 ABACO LANE RIVIERA BEACH, FL 33404-1872 RIVIERA BEACH, FL. 33404 RIVIERA BEACH, FL. 33404 RIVIERA BEACH, FL 33404 Proximity to Subject 0.18 miles NW 0.04 miles NW 1.27 miles SW. Sale Priva $ 240,000) $ 240,000) $ 240,000] $ 255,000 —___| Sale Price/Gross Liv. Area ($190.33 sqit|$ 190.33 sq.ft $190.33 sqft ——|s 185.19 sqitt] There are There are Address Data Source(s SALES OFF./PROP APPR. SALES OFF./PROP APPR. SALES OFF./PROP APPR. Verification Source(s) \V INSPECTION Vv INSPECTION V INSPECTION VALUE ADJUSTMENTS DESCRIPTION | DESCRIPTION | +(-) $ Adjustment | DESCRIPTION | +(-) $ Adjustment [ DESCRIPTION | +(-) $ Adjustment Sales or Financing CONV MTG. O|CONV MTG. O;CONV MTG. 0 Concessions Date of Sale/Time 9/07 0/8/07 09/5/07 Location RESIDENTIAL _|RESIDENTIAL RESIDENTIAL RESIDENTIAL Leasehold/Fee Simple FeE SIMPLE (FEE SIMPLE FEE SIMPLE Site 800 Sq.Ft. 800 Sq.Ft. 800 Sq.Ft. View RESIDENTIAL [RESIDENTIAL RESIDENTIAL le TWNHSE TWNHSE TWNHSE GOOD 0 GOOD GOOD Total [Barms.| Baths Total |Barms.| Baths 25/5) 2 |25 5i2 125 1,261_sq.tt. 1,261 sq.ft. 1,261. sqiit. Basement & Finished NIA NIA Rooms Below Grade NIA NIA N/A [N/A Functional Utiity STANDARD _|STANDARD STANDARD STANDARD Heating/Cooling _ CENTRAL CENTRAL CENTRAL CENTRAL fo] Energy Efficient items STANDARD [STANDARD STANDARD STANDARD rt OPEN PARK _|OPEN PARK OPEN PARK Bed PorchyPatio/Deck PATIO PATIO PATIO NONE NONE NONE NONE _ _-_|$ tu: |$ a+ _X- $8 ~14,640 Net Adj. Net Adj. 5.7% Gross Adj. Gross Adj. 5.7 % did did not reveal any prior sales or transfers of the subject property for the thre years prior to the effective date of this appraisal. Data Source(s) SC. My research _2¢ did" did nat reveal any prior sales or transfers of the comparable sales forthe yaar prior to the date of sale of the comparable sale, Data Source(s) ISC Report the results of the research and analysis of the prior sale or transfer history of the subject property and comparable sales (report additional prior sales an page 3). TEM SUBJECT COMPARABLE SALE #1 COMPARABLE SALE #2 COMPARABLE SALE #3 Date of Prior Sale/Transfer 14107 3/07 |/07 8/07 Price of Prior Sale/Transter 79,900 [179,300 [179,00 192,780 Data Source(s) PUBLIC RECORDS PUBLIC RECORDS {PUBLIC RECORDS PUBLIC RECORDS Effective Date of Data Source(s} 12/4/07 12/4/07. 42/4107 42/4/07. Analysis of prior sale or transfer history of the subject property and comparable saies THE SUBJECTS 36 MONTH AND THE COMPARABLES 12 MONTH SALES HISTORY ARE LISTED ABOVE. Summary of Sales Comparison Approach ALL THREE SALES ARE THE MOST RECENT COMPARABLES FOR ANALYSIS AND WERE ALL SIMILAR TO THE SUBJECT IN DESIGN, AGE, CONSTRUCTION QUALITY AND APPEAL, SALES 1 & 2 ARE FROM THE SUBJECT PROJECT AND SALE. 3.18 FROM A COMPETEING PROJECT. ALL SALES WERE GIVEN CONSIDERATION IN THE DERIVATION OF THE SUBJECTS MARKET VALUE. Approach $__ 240,000 Indicated Value by: Sales Comparison Approach $ 240,000 Cost Approach {it developed}$ 245,015 Income Approach (if developed) $ DUE TO LACK OF SUFFICIENT MARKET DATA, THE INCOME APPROACH IS GIVEN LESSER WEIGHT FOR EXISTING PROPERTIES. SALES COMPARISON METHOD BEST REFLECTS ACTIONS OF TYPICAL BUYER/SELLERS. This appraisal is made 2X “as is", subject to completion per plans and specifications on the basis of a hypothetical condition that the improvements have been completed, ___ Subject to the following repairs or alterations on the basis of a hypothetical condition that the repairs or alterations have been completed, or subject to the following required inspection based on the extraordinary assumption that the condition or deficiency does not require alteration or repair: RECONCILIATION Based on a complete visual inspection of the i flit S ISTRATIVE COMPLAINT. com i interior and i q iti conditions, and appraiser's certification, my (our) ‘opinion ae inariet va as fee of eral one that he anet EB this pon PTB T #. 40,000 as of 12/4/07 , Which is the date of inspection and the effective date of this appraisal. 3 Freddie Mac Form 70 March 2005 Page 2 of6 Fannie Mae Form 1004 Nagi(3Q05 OF Farm 1004 — "WinTOTAL" appraisal software by a la mode, inc. — 1-800-ALAMODE EXHIBIT. ) 3 pace! ys ian File No. MN121207] Page #7! Uniform Residential Appraisal Report File # MN121207 ADDITIONAL COMMENTS COST APPROACH TO VALUE {not re Provide adequate information for the lender/client to replicate the below cost figures and calculations. Support for the opinion of site value (summary of comparable land sales or other methods for estimating site value) DUE TO THE LACK OF RECENT SALES IN THE SUBJECT MARKET AREA, THE SITE VALUE WAS DETERMINED BY THE ABSTRACTION METHOD. fe] ESTIMATED REPRODUCTION OR 5 REPLACEMENT COST NEW [OPIMONOFSTTEVALUE. . =$ $ Source of cost data MARSHALL & SWIFT OWELLING 1,261 SqFt @$ 415.00. =t 145,015 Fe Qualty rating from cost service AVG Effective date of cost data 6/07 SqFt. @$ =f < Comments an Cost Agproach (grass living area calculations, depreciation, etc. _=8 2 DEP. BASED ON AGE/LIFE METHOD (ECON. LIFE- 60 YRS. W/A, Garage/Carport Sq.Ft. @$ =$ } REMAINING ECONOMIC LIFE OF 60 YEARS.) SUBJECTS LAND TO __| Total Estimate of Cost-New oo sh VALUE RATIO IS TYPICAL OF PROPERTIES IN THE SUBJECTS Less Physical Functional Extemal NEIGHBORHOOD. Depreciation =8( Depreciated Cost of Improvements . . a. =$ 145,015 9 149,0"° NOTE: THE COST APPROACH IS NOT FOR INSURANCE PURPOSES. |"As-is* Value of Site improvements =$ 5,000 —_—__|_ Estimated Remaining Economic Life (HUD and VA onl 60_Years |INDICATED VALUE BY COST APPROACH INCOME APPROACH TO VALUE (not required by Fannie Mae) Estimated Monthiy Market Rent $ X Gross Rent Multiplier =$ Indicated Value by Income Approach Summary af income Approach (Including support for market rent and GRM) | INCOME | - PROJECT INFORMATION FOR PUDs (if applicable) | the developer/builder in control of the Homeowners’ Assaciation (HOA)? XX Yes No _Unit type(s} Detached 3X Attached Provide the following information for PUDs ONLY if the developer/bullder Is in control of the HOA and the subject property is an attached dwelling unit. Legal Name of Project_ SONOMA BAY Fj Total number of phases 1 Total number af units 302 Total number of units sold 302 Eq Total qumber of units rented 10 Total number of units forsale Data source(s) SALES OFFICE = Was the project Created by the conversion of existing building(s) into a PUD? Yes >< No if Yes, date of conversion. fog Does the project contain any mutt-dwelling units? Yes. 5< Na DataSource SALES OFFICE Are the units, common elements, and recreation facilities complete? X Yes ___No If No, describe the status of completion. PUD INF: RATIVE COMPLAINT, Are the common elemants leased to or by the Homeowners’ Assaciation? Yes X Na_if Yes, describe the rental terms and options. OF Describe common elements and recreational facilties. POOL, CLUBHOUSE, GYM, GATED ENTRANCE, TENNIS COURT, COMMON AREAS A CE Freddie Mac Form 70 March 2005 Page 3 of 6 Fannie Mae Form 1004 March 2005 Form 1004 — *WinTOTAL" appraisal software by ala mode, ne, — 1-800-ALAMODE é vageort / y, ‘ neelS 7 ci aaametninet File No. MN121207] Page #81 Uniform Residential Appraisal Report File # MN121207 This report form is designed to report an appraisal of a one-unit property or a one-unit property with an accessory unit; including a unit in a planned unit development (PUD). This report form is not designed to report an appraisal of a manufactured home or a unit in a condominium or 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 canditions 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 not 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 compiexity 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 property, (2) inspect the neighborhood, (3) inspect each of the comparable sales from at least the street, (4) research, verify, and analyze data from reliable public and/or private sources, and (5) report his or her analysis, opinions, and conclusions in this appraisal Teport. INTENDED USE: The intended use of this appraisal report is for the jender/client to evaluate the property that is the subject of this appraisal for a mortgage finance transaction. INTENDED USER: The intended user of this appraisal report is the lender/client. DEFINITION OF MARKET VALUE: The most probable price which a property should bring in a competitive and open market under all conditions requisite to a fair sale, the buyer and seller, each acting prudently, knowledgeably and assuming the price is not affected by undue stimulus. Implicit in this definition is the consummation of a sale as of a specified date and the passing of title from seller to buyer under conditions whereby: (1) buyer and seller are typically motivated; (2) both parties are well informed or weil advised, and each acting in what he or she considers his or her own best interest; (3) a reasonable time is allowed for exposure in the open market; (4) payment is made in terms of cash in U. S. dollars or in terms of financial arrangements comparable thereto: and (5) the price represents the normal consideration for the property sald 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 readily identifiable since the sefler 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 lender that is not already involved in the praperty or transaction. Any adjustment should not be calculated on a mechanical dollar for dollar cost of the financing or concession but the dollar amount of any adjustment should approximate the market's reaction to the financing 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 following assumptions and limiting conditions: 1. The appraiser will not be responsible far matters of a legal nature that affect either the property being appraised or the title te it, except for information that he or she became aware of during the research involved in performing this appraisal. The appraiser assumes that the title is good and marketable and will not render any opinions about the title. 2. The appraiser has provided a sketch in this appraisal report to show the approximate dimensions of the improvements. we sketch is included only to assist the reader in visualizing the property and understanding the appraiser's determination size. 3. The appraiser has examined the available flood maps that are provided by the Federal Emergency Management Agency (or other data sources) and has noted in this appraisal report whether any portion of the subject site is located in an identified Special Flood Hazard Area. Because the appraiser is not a surveyor, he or she makes no guarantees, express or implied, regarding this determination. - 4, The appraiser will not give testimony or appear in court because he or she made an appraisal of the property in question, unless specific arrangements to do so have been made beforehand, or as otherwise required by law. 5. The appraiser has noted in this appraisal report any adverse conditions (such as needed repairs, deterioration, the presence of hazardous wastes, toxic substances, etc.) observed during the inspection of the subject property or that he or she became aware of during the research involved in performing the 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 woutd make the property less valuable, and has assumed that there are no such conditions and makes no guarantees or warranties, express or implied. The appraiser will not be responsible for any such conditions that do exist or for any engineering or testing that might be Tequired to discover whether such conditions exist. Because the appraiser is net an expert in the field of environmental hazards, this appraisal report must not be considered as an environmental assessment of the property. 6. The appraiser has based his or her appraisal report and valuation conclusion for an appraisal that is subject to satisfactory completion, repairs, or alterations on the assumption that the completion, repairs, or alterations of the subject property will be performed in a professional manner. PONINISTR ATIVE COMPLAINT AENT df. 3 7 af poor Freddie Mac Form 70 March 2005 Page 4 of 6 Fannie Mae Form 1004:March 2005 OF al al Form 1004 — “WinTOTAL* , inc, — 1-800-ALAMOI HNeh Eo es )3 lo 1004 — “WinTOTAL" appraisal software hy ala made, inc. — 1-800-ALAMODE EHHIOIT, PAGZ OQ _ [File No, MN121207 Page #9} Uniform Residential Appraisal Report Fle # MN121207 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. | performed a complete visual inspection of the interior and exterior areas of the subject ‘property. | reported the condition of the improvements in factual, specific terms. | identified and reported the physical deficiencies that could affect the livability, soundness, or structural integrity of the property. 3. | performed this appraisal in accordance with the requirements of the Uniform Standards of Professional Appraisal Practice that were adopted and 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. | 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, unless otherwise indicated in this report. 5. | researched, verified, analyzed, and reported on any current agreement for sale for the subject property, any offering for sale of the subject property in the twelve months prior to the effective date of this appraisal, and the prior sales of the subject Property for a minimum of three years prior to the effective date of this appraisal, unless otherwise indicated in this report. 6. | researched, verified, analyzed, and reported on the prior sales of the comparable sales for a minimum of one year prior to the date of sale of the comparable sale, unless atherwise indicated in this report. 7. | selected and used comparable sales that are locationally, physically, and functionally the most similar to the subject property. 8. | have not used comparable sales that were the result of combining a !and sale with the contract purchase price of a home that : has been built or will be built on the land. 9. 1 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 muttiple 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 correct. 14. | have taken into consideration the factors that have an impact on value with respect to the subject neighborhood, subject property, and the proximity of the subject property to adverse influences in the development of my opinion of market value. | have noted in this appraisal teport any adverse conditions (such as, but not limited to, needed repairs, deterioration, the Presence of hazardous wastes, toxic substances, adverse environmental conditions, etc.) observed during the inspection of the subject property or that | became aware of during the research involved in performing this appraisal. | have considered these adverse conditions in my analysis of the property value, and have reported on the effect of the conditions on the value and marketability of the subject property. 15. | have not knowingly withheld any significant information from this appraisal report and, to the best of my knowledge, ail statements and information in this appraisal report are true and correct. 16.1 stated in this appraisal report my own personal, unbiased, and professional analysis, opinions, and conclusions, which are subject only to the assumptions and limiting conditions in this appraisal report. 17.4 have no present or prospective interest in the property that is the subject of this report, and ! have no present or prospective personal interest or bias with respect to the participants in the transaction. | did not base, either partially or 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. 18. My employment and/or compensation for Performing this appraisal or any future or anticipated appraisals was not conditioned on any agreement or understanding, written or otherwise, that | would report (ar present analysis supporting) a predetermined specific value, a predetermined minimum value, @ range or direction in value, a value that favors the cause of any party, or the attainment of a specific result or occurrence of a specific subsequent event (such as approval of a pending mortgage loan application). 19.1 personally prepared all conclusions and opinions about the real estate that were set forth in this appraisal report. If 1 Telied on significant real property appraisal assistance from any individual or individuals in the performance of this appraisal | or the preparation of this appraisal report, | have named such individual(s) and disclosed the Specific tasks performed in this appraisal report. | certify that any individual so named is qualified to perform the tasks. | have not authorized anyone to make a change to any item in this appraisal report; therefore, any change made to this appraisal is unauthorized and | will take no Tesponsibility for it. m\We COMPLAINT —_ 2TH 20. | identified the lender/client in this appraisal report who is the individual, organization, or agent for the organigatiiy shit | ‘ ordered and will receive this appraisal repo exniBit Freddie Mac Form 70 March 2005 Page 5 of 6 Fannie Mae Form Qo arch 2005. 5 Ff 2 Form 1004 — *WinTOTAL" appraisal software by a a mode, inc. — 1-800-ALAMODE Ext io 17. /3 rAGE. | G { na laxxcnemee’ —<——— a ile No. MNiz1e0/1 Page #10! Uniform Residential Appraisal Report File # MIN121207 21. The lender/client may disclose or distribute this appraisal report to: the borrower; another lender at the request of the borrower; the mortgagee or its successors and assigns; mortgage insurers; 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 a copy or representation of my signature, the appraisal report shall be as effective, enforceable and valid as if a paper version of this appraisal report were delivered containing my original hand written signature. 25. Any intentional or negligent misrepresentation(s) contained in this appraisal report may fesult in civil liability and/or criminal penalties including, but not limited to, fine or imprisonment or bath 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 Teport, 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 jimited to, the appraiser's analysis, opinions, statements, conclusions, and the appraiser's certification. 3. The appraiser identified in this appraisal report is either a sub-contractor or an employee of the supervisory appraiser (or the appraisal firm), is qualified to perform this appraisal, and is acceptable to perform this appraisal under the applicable state law. 4., This appraisal report complies with the Uniform Standards of Professionai Appraisal Practice that were adopted and . promulgated by the Appraisal Standards Board of The Appraisat Foundation and that were in place at the time this appraisal report was prepared. 5. If this appraisal report was transmitted as an "electronic record” containing my “electronic signature,” as those terms are defined in applicable federal and/or state laws (excluding audio and video recordings), or a facsimile transmission of this appraisal report containing a copy or representation of my signature, the appraisal report 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 = MIKE NOBLET SUPERVISORY APPRAISER (ONLY IF REQUIRED) Signatur i { Signature Name MIKE NOBLET ST.CERT.RES.REA. Name Company Name SUNCOAST APPRAISERS Company Name Company Address 7550 NW 61 TERRACE, PARKLAND, FL 33067 Company Address Telephone Number 954-341-7775 Telephone Number Email Address SUNCOAST42@BELLSOUTH.NET Email Address Date of Signature and Report 1/10/08 Date of Signature Effective Date of Appraisal 1/9/08 State Certification # State Certification # RD3827 or State License # Or State License # State or Other (describe) State # Expiration Date of Certification or License State FL Expiration Date of Certification or License 11/30/2008 SUBJECT PROPERTY ADDRESS OF PROPERTY APPRAISED ~ Did not inspect subject property 1951 HIBISCUS LANE : _ Did inspect exterior of subject property from street RIVIERA BEACH, FL 33404-1872 Date of Inspection - - APPRAISED VALUE OF SUBJECT PROPERTY $ 240,000 - Did inspect interior and exterior of subject property LENDER/CLIENT Date of Inspection Name "RE Si jeleg hy gM DE A norte ke sondage cos “ Poti a Dia hen Ns Company Name PANIER MORTGAGE & INVESTMENT CORP COMPARABLE SALES a, PR nl Company Address 2000 PALM BEACH LAKES BLVD 700, WEST iq not inspect exterior af comparable sales from SeHIBiT 7 G OF a PALM BEACH, FL 33409 ~ Did inspect exterior of comparable sales trom street - Email Address PANIERMORTGAGE@YAHOO.COM Date of Inspection CAGE Freddie Mac Form 70 March 2005 Page 6 of 6 Fannie Mae Form 1004 March 2005 : Form 1004 — "WinTOTAL" appraisal software by a la mode, inc. —- 1-800-ALAMODE ECEINIT / 5 PAG? [ G2- —a (Fie No. 1aN121207] Page #17] Building Sketch Borrower/Clent_ ALVARADO, ROXX | Property Address_1951 HIBISCUS LANE | City RIVIERA BEACH County PALM BEACH State FL. Zp Code 33404-1872 Lender PANIER MORTGAGE & INVESTMENT CORP. PAPA EANIBY.Y 2 Beproom MASTER BECAOOM ize UMING ROO 140-883 10'10" DINING ROOM tatoo FIRST FLOOR SECOND FLOOR vag. Ae igen ADMINISTR exuet $2. ——— cana /2 race lo3 Form SKT.BldSkl — *WinTOTAL" appraisal software by ala mode, inc. —~ 1-800-ALAMODE File No. MN121207/ Page #12) Location Map Borrower/Client_ ALVARADO, ROXX Property Address_ 19514 HIBISCUS LANE City RIVIERA BEACH County PALM BEACH State FL. Dp Code 33404-1872 ;| Lender PANIER MORTGAGE & INVESTMENT CORP. org MapPoint’ } Balehisies paws RE Country Chi ot JDM tr 2 -Holly Dp - » cd > % ¢€ 8 = 3. eS = BS uw § 2 S$ op 7 BY . FS & Laghthsiseg, & \Y Mm 2 a > > a ees = 2 Q oo a » 2 2s = sé 2 a $ = MoanaKe Bid 9A = f & - = 2 é & « S 5 oe o liconsumer St Lilliarave ‘ = a. = S = = | > a ret | : Comparable $2 1953 GARDERIA COURT. 0.04 mies IVE i so ae 7 ar EyfINISTRATIVE COMPLAINT. iCOrnbétland “Dr [S2007 tiem ent vip Pc007 wavBG and forete Aas, ne, o> “i ES Form MAP.LOG — “WinTOTAL” appraisal software by ala mode, inc, — 1-800-ALAMODE Ett 113 IT / 5 PA {file No. MN121207| Page #13; Subject Photo Page BorowerClent ALVARADO, ROXX Subject Front 1951 HIBISCUS LANE Sales Price 240,000 Gross Living Area. 1,261 Total Rooms 5 Total Bedrooms 2 Total Bathrooms 25 Location RESIDENTIAL View RESIDENTIAL Site 800 Sq.Ft. Quality GOOD Age a Subject Rear Subject Street pihtNISTRATIVE COMPLAINT, CXMISIT +e —— OF COE enn eqion ID pace lOS Form PICPIX.SR ~- “WinTOTAL* appraisal software by a la mode, inc. — 1-800-ALAMODE ~— RE NG. MINI cell} Page 3 14) Subject Photo Page lpovqwerMlienr AULD OU — A Borower/Glent__ ALVARADO, ROXX [Property Address_1951 HIBISCUS LANE City RIVIERA BEACH County PALM BEACH State FL Zp Code 33404-1872 Lender PANIER MORTGAGE & INVESTMENT CORP Subject Kitchen 1951 HIBISCUS LANE Sales Price 240,000 Gross Living Area = 1,261 Total Rooms 5 Total Bedrooms 2 Total Bathrooms 2.5 Location RESIDENTIAL View RESIDENTIAL Site 800 Sq.Ft. Quaitty GooD Age 0 Subject Bath Subject Living Room AORN TALI VE Qui CALL EXHIBIT # PAGE /0 oor Senemmeee Form PICPIX.SR — "WinTOTAL* appraisal software by a a mode, ine, — 1-800-ALAMODE EXRai7. | 3 paaslloly Comparable Photo Page BorrawerCient ALVARADO, ROXX Property Address_1951 HIBISCUS LANE. City RIVIERA BEACH County PALM BEACH State FL _ Dp Code 33404-1872 Lender PANIER MORTGAGE & INVESTMENT CORP Form PICPIX.CR — “WinTOTAL* appraisal software by a la mode, inc, — 1-800-ALAMODE Comparable 1 1976 ALAMANDA WAY Prox. to Subject 0.18 miles NW Sale Price 240,000 Gross Living Area 1,261 Total Rooms 5 Total Bedrooms 2 Total Bathrooms = 2.5 Location RESIDENTIAL View RESIDENTIAL Site 800 Sq.Ft. Quality GOOD Age a Comparable 2 1953 GARDENIA COURT Prox. to Subject 0.04 miles NW Sale Price 240,000 Gross Living Area 1,261 Total Rooms 5 Total Bedrooms 2 Total Bathrooms 2.5 Location RESIDENTIAL View RESIDENTIAL Site 800 Sq.Ft. Quality GOOD Age 0 Comparable 3 1203 ABACO LANE Prox. to Subject 1.27 miles SW Sale Price 255,000 Gross Living Area 1,377 Total Rooms 5 Total Bedrooms 3 Totat Bathrooms 25 Location RESIDENTIAL View LAKE Site 800 Sq.Ft. Quality GOOD Age it} ADMINISTRATIVE COMPLAINT EXHIBIT # OF soon] 2 sade] Suncoast Appraisers (984) 341-7775 File No. MNO10608] Page #5] Uniform Residential Appraisal Report Fie# MNO10608 is lendercllent with an accurate, and adequately supported, n_of the market value of the subject property. Property Address 1120 LUCAYA DRIVE 2101 City_RIVIERA BEACH State FL Zp Code 33404-6447 Borrower SAINT-LOUIS, MARIE ROSE Owner of Pubiic Record SMACVIEW, INC. County PALM BEACH Legal Descripfion MARSH HARBOUR LT 1 BLK 15 Assessor's Parcel # 86-43-42-31-20-018-0010 Tax Year_2006 RE Taxes $_ 5,033.00 5 Neighborhood Name MARSH HARBOUR Map Reference 42-43-31 Census Tract {0014.04 py Occupant "Owner" Tenant 3% Vacant Special Assessments $_ N/A 2X PUD _HOA$ 140.00 "per year_3< per month bel Ej Property Rights Appraised X¢ Fee Simple Leasehold Other (describe iia Assignment Type ‘SC Purchase Transaction | Refinance Transaction Other (describe) Lender/Client HARTFORD MORTGAGE. Address 3600 S STATE ROAD 7 UNIT 220, MIRAMAR, FL 33023 {s the subject property currently offered for sale or has it heen ofered for sale In the twelve months prior to the effective date of this appraisal? Yes Report data source(s} used, offering price(s), and date(s). MLS / OWNER 1 XX did < did nat analyze the contract for sale for the subject purchase transaction. Explain the results of the analysis of the contract for sale or why the analysis was not performed. THE SUBJECT CONTRACT APPEARS TO BE FULLY EXECUTED BY BOTH PARTIES. fe] Contract Price § 305,000 Date of Contract_ 2/25/08 |s the property seller the owner af public record? >< Yes ___No_ Data Source(s) REAP. _ 2 's there any financial assistance (loan charges, sale concessions, gift or downpayment assistance, etc.) ta be paid by any party on behalf of the borrower? X Yes No £5] 'f Yes, report the total doltar amourtt and describe the items to he paid, 18,300 SELLER WILL CONTRIBUTE 6% OF THE PURCHASE PRICE TOWARDS BUYERS CLOSING COSTS. IBF Note: Race and the racial composition of the nelghborhiood are not appraisal factors. borhiood Characteristics One-Unit Housing Trends One-Unit Housing | Present Land Use % Location Urban! Suburban Rural Property Values Increasing >< Stable Declining PRICE AGE | One-Unit Py Suitt-Up >< Over 75%? 25-75% Under 25% | Demand/Supply Shortage > in Balance “Over Supply | $ (000) (yrs) [ 2-4 Unit Of! Sy Growth. Rapid _X Stable = Siow Marketing Time __" Under 3 mths_3< 3-6 mths Over6mihs| 150 Low O_| Multi-Family 20% Feq Neighborhood Boundaries NORTHLAKE TO THE NORTH, 45 STREET TO THE SOUTH, OLD DIXIE 320__High 31 | Commercial 10 % Fy HWY TO THE EAST, 195 TO THE WEST : 250+ Pred. 20+ | Other 10% Faj Neighborhoud Description NO ADVERSE FACTORS ARE KNOWN 10 THE APPRAISER WHICH WOULD AFFECT THE MARKETABILITY OF THE Pl SUBJECT. MOST MARKET-PREFERRED AMENITIES, SUCH AS SCHOOLS, SHOPPING, PUBLIC TRANSPORTATION RECREATION AND. My EMPLOYMENT ARE LOCATED WITHIN REASONABLE PROXIMITY TO THE SUBJECTS IMMEDIATE NEIGHBORHOOD. Market Conditions (including support for the above conclusions) THE APPRAISER HAS CONSIDERED RELEVENT COMPETITIVE LISTINGS AND/OR CONTRACT OFFERINGS IN THE PERFORMANCE OF THIS APPRAISAL .NORMAL MARKETING TIME: 90-180 DAYS. TYPICAL SP/LP RATIO: 90-95%. CONVENTIONAL FINANCING IS AVAILABLE AT INTEREST RATES AND DISCOUNTS MOST BUYERS FIND ATTRACTIVE. Dimensions 20 x 40 Area_800 Sq.Ft. Shape_ RECTANGULAR View LAKE Specific Zoning Classification RM-15 Zoning Description RESIDENTIAL MULTI FAMILY Zoning Compliance 3% Legal" Legal Nonconforming (Grandfathered Use) No Zoning Megat (describe Is the highest and best use of subject property as improved (ar as proposed per plans and specifications) the present use? X Yes No__ If No, describe Uttities Public Other (describe) Public Other (describe) Off-site Improvements - Type Public Private Electricity Water x Street ASPHALT ——__X : Santary Sewer_X_ Alley FEMA Map Date_9/30/1982 __ Yes No_ Yes, describe Foundation Exterior Description One _ One with Accessory Unit [5<° Concrete Siab Crawl Space Foundation Walls C/C/GD. TILE/CPT/GD. 2 : Full Basement Partial Basement _ [Exterior Walls CBS/GD Walls DRYWALL/GD __Det_X Att. 7 §-Det/End Unit [Basement Area sq.ft.|Roof Surface STILE/GD Tim/Finish WD/GD. 2X Existing Proposed {| Under Const. Basement Finish % [Gutters & Downspouts METAL/GD Bath Floor TILE/GD Design (Style) TWNHSE [Outside Eniry/Ext i 2007 Evidence of Infestation Bath Wainscot TILE/GD LX Driveway _ # of Cars 4 Driveway Surface PAVERS |. Garage # of Cars Capa # of Cars Det, Finished area above grade contains: 6 Rooms Additional features (special energy efficient items, etc). ALARM SYSTEM. 5 Baths) 1,507 __Square Feet of Gross Living Area Abave Grade IMPROV. Describe the condition of the property (including needed repairs, deterioration, renovations, remodeing, etc.). THE SUBJECT IS IN GOOD CONDITION WITH NO OBVIOUS REPAIRS NEEDED. Are there any physical deficiencies or adverse conditions that affect the livability, soundness, or structural integrity of the property? Yes 2X No_ if Yes, describe Ooes the property generally conform to the Neighborhood (functional utiity, style, condition, use, construction, atc.)? 2X Yes No if No, describe OF eee PAGE 20+ Freddie Mac Form 70 March 2005 Page 1 of 6 Fannie Mae Form +904 Mafeh 200: Form 1004 — “WinTOTAL" appraisal software by a fa mode, ine. — 1-800-ALAMODE MHIBIT. [File No. MNO10608| Page #6) ort File# MNO10608 ta 324,900 ta$ 320,000 Uniform Residential Appraisal Rep comparable properties currently offered for sale in the subject neighborhood ranging in price ftom $150,000 comparable sales in the subject neighborhood within the oast twelve months ranging in sale orice from $ 170,000 FEATURE SUBJECT COMPARABLE SALE # 1 COMPARABLE SALE # 2 COMPARABLE SALE # 3 Address 1120 LUCAYA DRIVE 2101 2006 MARSH HARBOUR DRIVE |2021 FREEPORT DRIVE 1405 LUCAYA DRIVE RIVIERA BEACH, FL 33404-6447 [RIVIERA BEACH, FL 33404 RIVIERA BEACH, FL 33404 RIVIERA BEACH, FL 33404 Proximity to Subject 0.04 miles NE 0.05 miles SW 0.05 miles NW Sale Price $ 305,000] 2 310,000 $ 320,000] Sale Price/Gross Liv. Area $202.39 sqft|$ 202.36 sqit. $186.81 sqft. IS 198.99 sq.ft. Data Source(s) SALES OFFICE/PROP APPR ___|SALES OFF./PROP APPR. SALES OFF./PROP APPR. Verification Source(s) V INSPECTION V INSPECTION V INSPECTION VALUE ADJUSTMENTS DESCRIPTION [DESCRIPTION | +(-) $ Adjustment | DESCRIPTION | +(-) $ Adjustment [ DESCRIPTION | +(] $ Adjusiment Sales or Financing CONV MTG. O|CONV MTG. O|CONV MTG. Concessions 44/707 1/08 Location RESIDENTIAL_|RESIDENTIAL RESIDENTIAL Leasehold/Fee Simple FEE SIMPLE [FEE SIMPLE FEE SIMPLE FEE SIMPLE Site 800 Sq.Ft. 800 Sq.Ft. 800 Sq.Ft. 800 Sq.Ft. View LAKE LAKE LAKE RESIDENTIAL Design (Style) TWNHSE TWNHSE TWNHSE Quality of Construction GOOD GOOD + {GOOD 0 0 a GooD GOOD GOOD {al [aan Baths | Total ‘Barms.| Gaths Total {Bdrms.| Baths | Lei 3laslel 3 las 713 [25 Gross Living Area 1,507_ sq.ft, 4,532 _sq.tt. [s) 4,713 sq.ft ~8,240 1,583 sq.tt. Basement & Finished NIA NA NIA NIA Rooms Below Grade N/A N/A N/A NIA Functional Utility STANDARD [STANDARD STANDARD ey Heating/Cooling [CENTRAL CENTRAL CENTRAL Energy Efficient iterns STANDARD _ [STANDARD STANDARD Garage/Carport OPEN PARK _|1 CARGAR -5,000|1 CAR GAR -6,000) PorchyPatio/Deck PATIO PATIO PATIO NONE NONE —_|— 2 | fe} Net Adjustment (Total) i” + X- 8 5,000) i+ X- | Pi] Adjusted Sale Price Net Ad. = 1.6% Net Adj. Gross Adj. 1.6% My research did did not reveal any prior sales or transfers of the subject property for the three years prior to the effective date of this appraisal. Data Source(s) ISC My research 3X, did did not reveal any prior sales or transfers of the comparable sales for the year prior to the date of sale of the comparable sale, Data Source(s) 1SC | Report the results of the research and analysis of the prior sale or transfer history of the subject property and comparable sales (regort additional prior sales an page 3). ITEM SUBJECT | COMPARABLE SALE #1 COMPARABLE SALE #2 COMPARABLE SALE #3 Date of Prior Sale/Transter SALES INFO [10/07 NO SALES INFORMATION |7/07 Price of Prior Sale/Transfer UNAVAILABLE {222,140 AVAILABLE 201,405 Data Source(s) PUBLIC RECORDS | -RLELG SREORES PUBLIC RECORDS PUBLIC RECORDS Effective Oate of Data Source(s) | 1/29/07 1/29/07 12/4/07 12/4/07 Analysis af prior sale or transfer history of the subject Droperty and comparable sales THE SUBJECTS 36 MONTH AND THE COMPARABLES 12 MONTH SALES HISTORY ARE LISTED ABOVE. Summary of Sales Comparison Approach ALL THREE SALES ARE THE MOST RECENT COMPARABLES FOR ANALYSIS AND WERE ALL SIMILAR TO THE SUBJECT IN DESIGN, AGE, CONSTRUCTION QUALITY AND APPEAL. SALES 1-3 ARE FROM THE SUBJECT PROJECT AND SALE 41S FROM A COMPETEING PROJECT. SQUARE FOOT ADJUSTMENT EQUALS $40 PER SQ.FT. ROUNDED. ALL SALES WERE GIVEN CONSIDERATION IN THE DERIVATION OF THE SUBJECTS MARKET VALUE. Cost Approach {if developed) $ 308,375 Income Approach (if developed) $ QUE TO LACK OF SUFFICIENT MARKET DATA, THE INCOME APPROACH IS GIVEN LESSER WEIGHT FOR EXISTING. PROPERTIES. SALES COMPARISON METHOD BEST REFLECTS ACTIONS OF TYPICAL BUYER/SELLERS. This appraisal is made XC ‘as is‘, ‘—; subject to completion per plans and specifications on the basis of a hypothetical condition that the improvements have been completed, 1_ Subject to the following repairs or alterations on the basis of a hypothetical condition that the repairs or alterations have been completed, or — subct ty the. feq ‘allowing required inspection based on the extraordinary assumption that the condition or deficiency does not require alteration ar repair: i ; NCILIATIO! REC Based on a complete visual Inspection of the interior and exterior areas of the subject proy defined scope of work, statement of assumptions ant conditions, and appraiser's certification, my (our) pion of fle mena wale a er ee eat Taal propery th a the secre or ae Feport is =" $___ 305,000 as of 2/27/08 which is the date of inspection and the effective date of this appraisal, Freddie Mac Form 70 March 2005 Page 2 of 6 Fannie Mae Form 1004 March 2005 Form 1004 — “WinTOTAL? appraisal software by a fa mode, inc, — 1-800-ALAMODE EXHISITL. (3 PAGE, [Fie No. MINO10608] Page #7! Uniform Residential Appraisal Report File # MNO10608 ADDITIONAL COMMENTS: COST APPROACH TO VALUE (not required by Fannie Mae) Provide adequate information for the tender/client to replicate the below cost figures and calculations. Support for the opinion of site value (summary of comparable land sales or other methods for estimating site value) DUE TO THE LACK OF RECENT SALES IN THE SUBJECT MARKET AREA, THE SITE VALUE WAS DETERMINED BY THE ABSTRACTION METHOD. fe] ESTIMATED < Yes No___ Unit type(s) Detached >< Attached Provide the following information for PUDs ONLY if the developer/builder is in control of the HOA and the subject property is an attached dwelling unit. Legal Name of Project MARSH HARBOUR Total number of phases 4 Total number of units 402 Total number of units sald 283 Total number of units rented 10 Total number of units forsale 15, Data source(s) SALES OFFICE Was the project created by the conversion of existing buildings) into aPUD? Yes SX No If Yes, date of conversion. Does the project contain any Moulti-dwelling units? -...< Yes 3¢ No DataSource SALES OFFICE. ==. = Are the units, common elements, and recreation facilities complete? Xx Yes ___ No If No, describe the status of completion. 3 = 3 Ea 2 Are the common elements feased to or by the Homeowners’ Association? Yes 2X No_if Yes, describe the rental terms and options. Describe common elements and recreational facilities. POOL, CLUBHOUSE, GYM, GATED ENTRANCE, TENNIS COURT, COMMON AREAS Page 3 of 6 Fannie Mae Form 1004 March 2005 Freddie Mac Form 70 March 2005 Form 1004 — *WinTOTAL" appraisal software by 2 la mode, inc. — 1-800-ALAMODE EME {U30T. | 3 Pp AGE [le No. MINOT0608] Page #8) Uniform Residential Appraisal Report File # MNO10808 This report form is designed to report an appraisal of a one-unit property or a one-unit property with an accessory unit; including a unit in a pianned unit development (PUD). This report form is not designed to report an appraisal of a manufactured home or a unit in a condominium or cooperative project. This appraisal report is subject to the follawing scape of work, intended use, intended user, definition of market value, statement of assumptions and limiting conditions, and certifications. Moditications, 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 not constitute material alterations to this appraisal report, such as those required by law or those related to the appraiser's cortinuing 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 Teporting 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 property, (2) inspect the neighborhood, (3) inspect each of the comparable sales from at least the street, (4) research, verity, and analyze data from reliable public and/or private sources, and (5) report his or her analysis, opinions, and conciusions in this appraisal report. 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/ciient. DEFINITION OF MARKET VALUE: The most probable price which a property should bring in a competitive and open ; market under all conditions requisite to a fair sale, the buyer and seller, each acting prudently, knowledgeably and assuming the price is not affected by undue stimulus. Implicit in this definition is the consummation of a sale as of a specified date and the passing of titfe from seller to buyer under conditions 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) a reasonable time is allowed for exposure in the open market; (4) payment is made in terms of cash in U. S. doffars 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 resuit of tradition or law in a market area; these costs are readily 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 lender that is not already involved in the property or transaction. Any adjustment should not be calculated on a mechanical dolfar for dollar cost of thé financing or concession but the dollar amount of any adjustment should approximate the market's reaction.to the financing ar concessions based on the appraiser's judgment. STATEMENT OF ASSUMPTIONS AND LIMITING CONDITIONS: The appraiser's certification in this report is subject to the following assumptions and limiting conditions: 1. The appraiser will not be responsible for matters of a legal nature that affect either the property being appraised or the title to it, except for information that he or she became aware of during the research involved in performing this appraisal. The appraiser assumes that the title is good and marketable and will not render any opinions about the title. 2. The appraiser has provided a sketch in this appraisal report to show the approximate dimensions of the improvements. Tre sketch is included only to assist the reader in visualizing the property and understanding the appraiser's determination its size. 3. The appraiser has examined the available flood maps that are provided by the Federal Emergency Management Agency (or other data sources) and has noted in this appraisal report whether any portion of the subject site is located in an identified Special Flood Hazard Area. Because the appraiser is not a surveyor, he or she makes no guarantees, express or implied, regarding this determination. 4. The appraiser will not give testimony or appear in court because he or she made an appraisal of the property in question, unless specific arrangements to do so have been made beforehand, or as otherwise required by law. 5. The appraiser has noted in this appraisal report any adverse conditions (such as needed repairs, deterioration, the Presence of hazardous wastes, toxic substances, etc.) observed during the inspection of the subject property or that he or she became aware of during the research involved in performing the appraisal. Unless otherwise stated in this appraisal report, the appraiser has no knowledge of any hidden or unapparent physical deficiencies or adverse conditions of the Property (such as, but not limited to, needed repairs, deterioration, the presence of hazardous wastes, toxic substances, adverse environmental conditions, etc.) that would make the property less valuable, and has assumed that there are no such conditions and makes no guarantees or warranties, express or implied. The appraiser will not be responsible for any such conditions that do exist or for any engineering or testing that might be required to discover whether such conditions exist. Because the appraiser is not an expert in the field of environmental hazards, this appraisal report must not be considered as ~AD. environmental, assessment of. the property. ee * SEALS Bes ath 6. The appraiser has based his or her appraisal report and valuation conclusion for an appraisal that is subject to satisfactory completion, tepairs, or alterations on the assumption that the completion, repairs, or alterations of the subject property will be performed in a professional manner. iSTRATIVE COMPLAINT EXHIBIT #__> S<_ OF © PAGE WA Freddie Mac Form 70 March 2005 Page 4 of 6 Fannie Mae Form 1004 March 2005 e Form 1004 — "WinTOTAL" appraisal software by a la mode, Inc. — 1-800-ALAMODE Pores |3 ever > pa ro) fa Qo | rule No. MNUTOGUS) Page #9 Uniform Residential Appraisal Report Fite # MNO10608 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. | performed a complete visual inspection of the interior and exterior areas of the subject Property. | reported the condition of the improvements in factual, specific terms. | identified and reported the physical deficiencies that could affect the livability, soundness, or structural integrity of the property. . 3. | performed this appraisal in accordance with the requirements of the Uniform Standards of Professional Appraisal . Practice that were adopted and promulgated by the Appraisal Standards Board of The Appraisal Foundation and that were in place at the time this appraisal report was prepared. 4. 1 developed my opinion of the market value of the real property that is the subject of this report based on the sales comparison approach to value. | have adequate comparable market data 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, unless otherwise indicated in this report, 5. | researched, verified, analyzed, and reported on any current agreement for sale for the subject property, any offering for sale of the subject property in the twelve months Prior to the effective date of this appraisal, and the prior sales of the subject Property for a minimum of three years prior to the effective date of this appraisal, unless otherwise indicated in this report. 6. | researched, verified, analyzed, and reported on the prior sales of the comparable sales for a minimum of one year prior to the date of sale of the comparable sale, unless otherwise indicated in this report. 7. t selected and used comparable sales that are locationally, physically, and functionally the most similar to the subject property. 8. | have not used comparable sales that were the result of combining a land 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 récords, public land records and ather 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 correct. 14. | have taken into consideration the factors that have an impact on value with respect to the subject neighborhood, subject property, and the proximity of the subject property to adverse influences in the development of my opinion of market value. | have noted in this appraisat 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 invoived in performing this appraisal. } have considered these adverse conditions in my analysis of the property value, and have reported on the effect of the conditions on the value and marketability of the subject property. 15. | have not knowingly withheld any significant information from this appraisal report and, to the best of my knowledge, all Statements and information in this appraisal report are true and correct. 16. 1 stated in this appraisal report my own Personal, unbiased, and professional analysis, opinions, and conclusions, which are subject only te the assumptions and limiting conditions in this appraisal report. 17. | have no present or prospective interest in the property that is the subject of this report, and | have no present or Prospective personal interest or bias with respect to the participants in the transaction. | did not base, either partially or 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. 18. My employment and/or compensation for performing this appraisal or any future or anticipated appraisals was not conditioned on any agreement or understanding, written or otherwise, that | would report (or present analysis supporting) a Predetermined specific value, a predetermined minimum value, a range or direction in value, a value that favors the cause of any party, or the attainment of a specific result or occurrence of a specific subsequent event (such as approval of a pending Mortgage loan application). 19. | personally prepared ali conclusions and opinions about the real estate that were set forth in this appraisal report. {f | relied on significant real property appraisal assistance from any individual or individuals in the performance of this appraisal ,OF,the preparation of this appraisal report, | have named such individual(s) and disclosed the specific tasks performed in this appraisal report. | certify that any individual so named is qualified to perform the tasks. | have not authorized anyone to make a change to any item in this appraisal report; therefore, any change made to this appraisal is unauthorized and | will take no Tesponsibility for it. 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. Freddie Mac Form 70 March 2005 Page 5 of 6 Fannie Mae Form 1004 March 2005 Form 1004 — "WinTOTAL" appraisal software by a la mode, inc. — 1-800-ALAMCDE EMM rmey = PAS “2 0 net lial ee SE . te File No. MNQ10608; Page #10) Uniform Residential Appraisal Report File # MNO10608 21. The lender/client may disclose or distribute this appraisal report to: the borrower; another lender at the request of the borrower; the mortgagee or its successors and assigns; mortgage insurers; 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 tender/client may be subject to certain faws 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 a copy or representation of my signature, the appraisal report shall be as effective, enforceable and valid as if a paper version of this appraisal report were delivered containing my original hand written signature. 25. Any intentional or negligent misrepresentation(s) contained in this appraisal report may result in civil liability and/or criminal penalties including, but not limited to, fine or imprisonment or both under the provisions of 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 is 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 report was prepared. 5. If this appraisal report was transmitted as an "electronic record” containing my “electronic signature,” as those terms are defined in applicable federal and/or state laws (excluding audio and video recordings), or a facsimile transmission of this appraisal report containing a copy or representation of my signature, the appraisal report 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 = MIKE NOBLET SUPERVISORY APPRAISER (ONLY IF REQUIRED) Vag yo A Signature” Li he Ee] Signature Name MIKE NOBLET ST.CERT.RES.REA. Name Company Name SUNCOAST APPRAISERS Company Name Company Address 7550 NW 61 TERRACE, PARKLAND, FL 33067 Company Address Telephone Number 954-341-7775 Telephone Number Email Address SUNCOAST@MYACC.NET Email Address Date of Signature and Report 2/28/08 Date of Signature Effective Date of Appraisal 2/27/08 State Certification # State Certification # RD3827 or State License # or State License # State or Other (describe) State # Expiration Date of Certification or License State FL’ = Expiration Date of Certification or License 11/30/2008 SUBJECT PROPERTY = | ADDRESS OF PROPERTY APPRAISED _ Did not inspect subject property = 1120 LUCAYA DRIVE 2101 . Did inspect exterior of subject property from street = } RIVIERA BEACH, FL 33404-6447 Date of Inspection - o | Le APPRAISED VALUE OF SUBJECT PROPERTY $ 305,000, Did inspect interior and exterior of subject property o fo) LENDER/CLIENT Date of Inspection Li a Name ” COMPARABLE SALES = Company Name HARTFORD MORTGAGE RON Company Address 3600 $ STATE ROAD 7 UNIT 220, MIRAMAR, ~ Did not inspect exterior of comparable sales from street Pe aye FL 33023 Did inspect exterior of comparable sales from street br | Email Address §ADEBAYOMARLENE@YAHOO.COM ” Date of Inspection & t Freddie Mac Form 70 March 2005 Page 6 of 6 Fannie Mae Form 1004 March 2005 < woo —" ” isal by ala made, inc. — 1-800-ALAMODE | 3 7 Form 1004 — "WinTOTAL* appraisal software by a la mode, inc. EMUorr PAGE 20 a ADMIN! Fie NO. MNUIUGVe! rage #11 Uniform Residential Appraisal Report File # MNO10608 COMPARABLE SALE #4 COMPARABLE SALE #5 COMPARABLE SALE #6 Address 1120 LUCAYA DRIVE 2101 2015 ISLAND DRIVE 3611 OLEANDER TERRACE —_—|1994 NASSAU DRIVE RIVIERA BEACH, FL. 33404-6447 |RIVIERA BEACH, FL 33404 RIVIERA BEACH, Fl. 33404 RIVIERA BEACH Proximity to Subject 0.12 miles E 1.32 miles NE 0.05 miles SE Sale Price S$ 305,000 $ 305,000 $ 320,000! Sale Price/Gross Liv.Area_($ 202.39 sqit|$ 202.39 sat, $182.23 sq $202.35 sq Data Source(s) SALES OFFICE/PROP APPR___|SALES OFFICE/PROP APPR {SALES OFFICE Verification Source(s) V INSPECTION \V INSPECTION V INSPECTION DESCRIPTION | DESCRIPTION | +()$Adjusiment | DESCRIPTION | +() $ Adjustment | DESCRIPTION Sales or Financing CONV MTG. QICONV MTG. ol Concessions Date of Sale/Time __|1or3a/07 0|41/7/07 O|PENDING i RESIDENTIAL [RESIDENTIAL RESIDENTIAL RESIDENTIAL Fed Leaschold/Fee Simple FEE SIMPLE _|FEE SIMPLE FEE SIMPLE FEE SIMPLE Fr Site 800 Sq.Ft. 800 Sq.Ft. 800 Sq.Ft. 800 Sq.Ft. LAKE LAKE LAKE. LAKE Py Design (Style) TWNHSE TWNHSE TWNHSE TWNHSE EA Quality of Construction GooD GOOD GOOD 0 0 GOOD GOOD .j Baths | Total |Bdrms.| Baths Total |Bdrms.} Baths 25| 6/3 [25 613 125 4,507 sqft. 1,507 sqit 4,756 sq. NIA NA NIA Rooms Below Grade NIA N/A N/A Functional Utility STANDARD __ {STANDARD STANDARD STANDARD Heating/Cooling CENTRAL CENTRAL | CENTRAL {CENTRAL Energy Efficient items STANDARD [STANDARD STANDARD STANDARD OPEN PARK _ [OPEN PARK 1 CAR GAR 1 CAR GAR PATIO [PaTIO PATIO. PATIO NONE [NONE NONE NONE: DAYS ON MARKET. Net Adjustment (Total) + X- Adjusted Sale Price Net Adj. Net Ad. = 4.7% of Comparables Gross Adj. I$ 305,000|Gross Adj. 4.7% Report the resutts of the research and alysis ot the prior sale or transfer history of the subject property and comparabl SUBJECT COMPARABLE SALE #4 COMPARABLE SALE #5 COMPARABLE SALE #6 Date of Prior Sale/Transfer [SALES INFO 6/06 9/07 SALES INFO Fo tice of Prior Sale/Transfer UNAVAILABLE 210,990 249,990 UNAVAILABLE fa} Data Source(s) PUBLIC RECORDS PUBLIC RECORDS PUBLIC RECORDS [PUBLIC RECORDS £2] Effective Date of Data Source(s) | 1/29/07 1/29/07 4/29/07 1/29/07 fa Analysis of prior sale or tanster history of the subject property and comparable sales THE SUBJECTS 36 MONTH SALES HISTORY AND THE fq COMPARABLES 12 MONTH SALES HISTORY |S LISTED ABOVE. Analysis(Comments_ COMPARABLES 4 IS AN ADDITIONAL SALE FROM A COMPETING PROJECT AND WAS PROVIDED TO LEND SUPPORT TO THE MARKET VALUE OF THE SUBJECT. COMPARABLES 5 & 6 ARE PENDING SALES OF SIMILAR UNITS TO THE SUBJECT. ANALYSIS / COMMENTS: OF Freddie Mac Form 70 March 2005 Fannie Mae Form 1004 March 2005 ADMINISTRATIVE COMPLAINT PAGE i) rh o4 PA Form 1004.(AC) — "WinTOTAL” appraisal software by a la mode, inc. — 1-800-ALAMODE EX t 413 iT [ 5 hl eee atacmary| Building Sketch Borrawer/Client_ SAINT-LOUIS, MARIE ROSE State FL Zp Code_ 33404-6447 Property Address 1120 LUCAYA DRIVE 2101 RIVIERA BEACH County PALM BEACH HARTFORD MORTGAGE THE SANDS , uvINe ROGM WX 16-0" DINING ROOM ao" X 124" BEDROOM? 10 X11 FIRST FLOOR SECOND FLOOR THE SANDS FIRST FLOOR 701 sa. Fr. 1 SeconD FLooR a0s sa. rv. xg } Tora we 1807 Ba. Ft. GNIZS. entry Porc 46 sa. Fr. MARSH HARBOUR Paria Sesarr TOWNHOMES AND VILLAS 1,611 sq. Fr. (A COMMUNITY TO CALL HOME TOTAL A/C IPLAINT, #__ > —__ oF ADMINISTRATIVE COM EXHIBIT SPace a ® ews [2 on Form SKT.BldSki — "WinTOTAL" appraisal software by ala mode, inc. —- t-800-ALAMODE Location Map Borrower/Client_ SAINT-LOUIS, MARIE ROSE Property Address 1120 LUCAYA DRIVE 2101 Ci RIVIERA BEACH County PALM BEACH HARTFORD MORTGAGE Zp Code_33404-6447 7 g % a 4 3 2 Qo a ¢ H z lune Beach Ss & ° g i Haad2q ° : tgog Hoss é g glune bales : g FO ey F 5 1 Vanetcta Gactons Ave a iett " a z Te eaggcts® Wag . é Ps 3 Palm Beach 8 2 3 7 Gardens . % = TRG Ape Ais ‘4, % 1 3 202 bint 2 a 2 = g Ail FOL % a Garhi Fy AIA O ¢ PAL Y 2 ¢ ° z 3 703 s % z 2 North Palm Beach i 4 Nectiake Blut Nerthtthc Biles! 309A Nertvuke Shar 850 Butea Res i710 WCongc6.8 Ave 4 ra (Palm Beact sles INOiwe May NC B R MPLAINT, ts :é S o he, 4 2% we x Cypress Lakes _ = s é : 2 ae, 3 oO 3 £ % + : 2 fr) Fukion $ — Corrnumatyor 2 2 gt => Vitty. ” 5 UF = Searset Aver Co Noch Oe Schalt “ we AIA . e — Circa, itary Park gts tug’ WWest Palm Beach <= ; “. coms a = e . Fanst rat ey Fl veara Or go ba FS Obeécnntoe Fv 70d ES Zz ao = =eSw =io 2% < 2 tu Qa colO Farm MAP.LOC — "WinTOTAL” appraisal software by a la mode, inc. — 1-800-ALAMODE | ile No. MNO10608] P: Subject Photo Page Borower/Glent SAINT-LOUIS, MARIE ROSE [Property Address 1120 LUCAYA DRIVE 2101 City RIVIERA BEACH Lender HARTFORD MORTGAGE Zip Code_33404-6447 PALM BEACH State FL. Subject Front 1120 LUCAYA DRIVE 2101 Sales Price 305,000 Gross Living Area = 1,507 Total Rooms 6 Total Bedrooms 3 Total Bathrooms «2.5 Location RESIDENTIAL View LAKE Site 800 Sq.Ft. Quaiity GOOD Age ie} Subject Rear Subject Street Form PICPIX.SR — "WinTOTAL" appraisal software by a la mode, inc. — 1-800-ALAMODE Subject Photo Page Borower/Client _ SAINT-LOUIS, MARIE ROSE Property Address_1120 LUCAYA DRIVE 2101 ic RIVIERA BEACH County PALM BEACH State Fl___Zin Code 33404-6447 Lender HARTFORD MORTGAGE Subject Bathroom 1120 LUCAYA DRIVE 2101 Sales Price 305,000 Gross Living Area 1,507 Total Rooms 6 Total Bedrooms 3 Total Bathrooms «2.5 Location RESIDENTIAL View LAKE Site 800 Sq.Ft. Quality Good Age 0 Subject Kitchen Subject Water View ADMINISTRATIVE COMPLAINT EXHIBIT #2 sage #1 OF cme |B exge DU Form PICPIX.SR — “WinTOTAL* appraisal software by a la mode, inc. — 1-800-AL AMODE Ao |e SE (3 File No. MNO10608} Page #16) Comparable Photo Page Borrower/Client_ SAINT-LOUIS, MARIE ROSE [Pronerty Address_1120 LUCAYA DRIVE 2101 Gi RIVIERA BEACH County PALM BEACH State FL 2p Code 33404-6447 Lender HARTFORD MORTGAGE Comparable 1 2006 MARSH HARBOUR DRIVE Prox, to Subject 0.04 miles NE Sale Price 310,000 Gross Living Area 1,532 Total Rooms 6 Total Bedrooms 3 Total Bathrooms «2.5 Location RESIDENTIAL View LAKE Site 800 Sq.Ft. Quality GooD Age Ly) Comparable 2 2021 FREEPORT DRIVE Prox. ta Subject 0.05 miles SW Sale Price 320,000 Gross Living Area = 1,713 Total Rooms 7 Total Bedrooms 3 Total Bathrooms = 2.5 Location RESIDENTIAL View LAKE Site 800 Sq.Ft. Quality GooD Age 0 Comparable 3 1405 LUCAYA DRIVE Prox. to Subject 0.05 miles NW Sale Price 315,000 Gross Living Area = 1,583 Total Rooms 6 Total Bedrooms 3 Total Bathrooms 25 Location RESIDENTIAL View RESIDENTIAL Site 800 Sq.Ft. Quality GOOD Age 0 SSTRATIVE COMP LAINT ee i EXHIBIT er L Form PICPIX.CR — "WinTOTAL” appraisal software by ala mode, Inc. — 1-800-ALAMODE { 3 2 3 EXHIBIT, <> paces | Comparable Photo Page (File No. MNO10608} Page #17] Borrower/Glient__SAJNT-LOU!S, MARIE ROSE Property Address_1120 LUCAYA DRIVE 2101 Lender HARTFORD MORTGAGE Prax. to Subject Sales Price Gross Living Area Total Rooms Total Bedrooms Total Bathrooms Location Prax, to Subject Sales Price Gross Living Area Total Rooms Total Bedrooms Total Bathrooms Location View Site Quality Age Form PICPIX.CR — *WinTOTAL* appraisal software by a la mode, ine, — 1-800-ALAMODE City RIVIERA BEACH County PALM BEACH. State FL Zip Code_33404-6447 Comparable 4 2015 ISLAND DRIVE 0.12 miles E 305,000 1,507 6 3 2.5 RESIDENTIAL LAKE 800 Sq.Ft. GOOD it) Comparable 5 3611 OLEANDER TERRACE 1.32 miles NE 320,000 1,756 6 3 2.5 RESIDENTIAL LAKE 800 Sq.Ft. GOOD i) Comparable 6 1994 NASSAU DRIVE Prox. to Subject 0.05 miles SE Sales Price 310,000 Gross Living Area 1,532 Total Rooms 6 Total Bedrooms 3 Total Bathrooms 25 Location RESIDENTIAL View LAKE Site 800 Sq.Ft. Quality GOOD Age 0 wa OMPELAINL cas 12 pac ol Suncoast Appraisers (954) 341 TT i . [File No. MINI 20607! Page #5] Uniform Residential Appraisal Report Flle# MIN120607 Property Address_ 2009 NASSAU DRIVE 3605 City RIVIERA BEACH State FL Zip Code_33404-6460 Sorrower_ MIRACLE, LIVANA Owner of Public Record ~SMACVIEW, INC. County PALM BEACH Legal Descriotion MARSH HARBOUR LT 4 BLK 23 Assessor's Parcel # 56-43-42-31-30-023-0020 Tax Year_ 2007 RE. Taxes $_ 4,705.00 Pq Neighborhood Namae_ MARSH HARBOUR Map Reference 42-43-31 Census Tract 0014.04 a Occupant - Owner Tenant 3 Vacant Special Assessments $_ N/A PUD _HOA$ 140.00 per year >< per month a Property Rights Appraised > Fee Simple Leasehold Other (describe) iid Assignment Type >< Purchase Transaction Refinance Transaction ____ Other (describe) Lender/Client__HARTFORD MORTGAGE Address__3600 S STATE ROAD 7 UNIT 220, MIRAMAR, FL. 33023 _ |s the subject property currently offered for sale or has it been offered for sale in the twelve months orior to the effective date of this appraisal? Yes 3X No Report data source(s) used, offering price(s), and date(s). MLS / OWNER |X did did not analyze the contract for sale for the subject purchase transaction. Explain the results of the analysis of the contract for sale or why the analysis was not performed. _THE SUBJECT CONTRACT APPEARS TO BE FULLY EXECUTED BY BOTH PARTIES. FY Contract Price $ 255,000 Date af Contract_ 12/10/07 Is the property seller the owner of public record? XX Yes No_Data Source(s) REAP 4 is there any financiat assistance (loan charges, sale concessions, gift or downpayment assistance, etc.) to be paid by any party on behalf of the borrower? Yes No eport the total dollar amaunt and describe the items to be paid. 7,650. SELLER WILL CONTRIBUTE 3% OF THE PURCHASE PRICE TOWARDS BUYERS CLOSING COSTS. Neighborhood Characteristics i One-Unit Housing Trends One-Unit Housing Location Urban > Suburhan’ Rural Property Values Increasing Stable Declining PRICE AGE | One-Unit 60% Buitt-Up_ >< Over 75% "25-75% Under 25% | Demand/Supply Shortage < In Balance __ Over Supply | $ (000 fey Growth Rapid 3X Stable ‘Slow [Marketing Time Under 3 mths >< 3-6 mths Over @ mths 150 Low 0 __| Mult-Family 20% Fa Neighborhood Boundaries | NORTHLAKE TO THE NORTH, 45 STREET TO THE SOUTH, OLD DIXIE 320__High _34-__| Commercial fa HWY TO THE EAST, 195 TO THE WEST 250+ Pred. 20+ EMPLOYMENT ARE LOCATED WITHIN REASONABLE PROXIMITY TO THE SUBJECTS IMMEDIATE NEIGHBORHOOD. Market Conditions (including support for the above conclusions} THE APPRAISER HAS CONSIDERED RELEVENT COMPETITIVE LISTINGS AND/OR, CONTRACT OFFERINGS IN THE PERFORMANCE OF THIS APPRAISAL NORMAL MARKETING TIME: 90-180 DAYS. TYPICAL SP/LP RATIO: 90-95%. CONVENTIONAL FINANCING IS AVAILABLE AT INTEREST RATES AND DISCOUNTS MOST BUYERS FIND ATTRACTIVE. Dimensions 20 X 40 Area_800 Sq.Ft. Shape_ RECTANGULAR View RESIDENTIAL Specific Zoning Classification RM-15 Zoning Description RESIDENTIAL MULTI FAMILY. Zoning Compliance 2X Legal “Legal Noncanforming (Grandfathered Use) No Zoning legal (describe \s the highest and best use of subject property as improved (or as proposed per plans and specifications) the present use? X< Yes No _f No, describe baz Utilities Public Other (describe) Public _ Other (describe) Off-site Improvements - Type Public _ Private Giectrcity > . Water x. Street_ ASPHALT . x EI Sewer _X _ Alley FEMA Special Flood Hazard Area 3X Yes No FEMA Flood Zone Ag FEMA Map #_1251420002D FEMA Map Date 9/30/1982 Are the utilities and off-site improverients typical for the market area? X Yes No_If No, describe Are there any adverse site conditions or extemal factors (easements, encroachments, environmental conditions, land uses, etc.)? — Yes >< No_ If Yes, describe General Description Foundation Exterior Description materials/condition | Interior materials/condition Units >< One ___ One with Accessory Unit Concrete Slab Crawl Space Foundation Walls CiC/GD Floors TILE/CPT/GD. # of Stories 2 Full Basement Partial Basement [Exterior Walls CBSs/GD Walls DRYWALUGD Type __ Det. 3% Att © §-Det/End Unit [asement Area sqft.|Root Surface STILE/GD TrinyFinish — WO/GD- Existing "Proposed ~~ Under Const. [Basement Finish % {Gutters & Downspouts METAL/GD TILE/GD Design (Style) TWNHSE [Outside Entry/Exit Sump Pump _| Window Tyne SLIDER/GD 2007 [Evidence of Infestation Storm Sash/insulated YES/GD Screens YES/GD ~~ Other Fuel ELEC. |. Fireplace(s) # Cooling 3X Central Air Conditioning UX Patio/Deck X Porch Heated F Individual Other “Peal ~~ Other Finished area above grade contains: 5 Rooms 2 Bedrooms 3 Bath(s) S 41,377 _ Square Feet of Gross Living Area Above Grade ditional features (special energy efficent items, etc.). ALARM SYSTEM, CEILING FANS. IMPROVEMENTS. Describe the condition of the property (Including needed Tepairs, deterioration, renovations, remodeling, etc). THE SUBJECT IS IN GOOD CONDITION WITH NO. OBVIOUS REPAIRS NEEDED. THE SUBJECT HAD NEW KITCHEN CABINETS, APPLIANCES, TILE FLOORING, NEW FIXTURES IN ALL BATHROOMS. AF se Are there any physical deficiencies ar adverse conditions that affect the livability, soundness, or structural integrity of the property? _ Yes >< No_ if Yes, describe a“ ADMINISTRATIVE COMPLAINT: aE = ti Does the property generally conform to the neighborhood (functionat utility, style, condition, use, construction, etc,)? X Yes No_If No, describe fo Lua zz SG , xo Freddie Mac Form 70 March 2005 Page 1 of 6 Fannie Mae Form 1004 March 2005 i 0. Form 1004 — "WinTOTAL" appraisal software by a la mode, inc. — 1-800-ALAMODE canoe 3 pace ZO) File No. MN1206071 Page #6} File # MN120607 Uniform Residential Appraisal Report 33 comparable properties currently atfered for sale in the subject neighborhood ranging in_price from $ 150,000 iin the past twelve months ranging in sale price from $170,000 COMPARABLE SALE # 3 17___comparable sales in the subject neighborhood SUBJECT COMPARABLE SALE #1 COMPARABLE SALE # 2 Address 2009 NASSAU DRIVE 3605 4203 ABACO DRIVE 2037 NASSAU DRIVE 1207 ABACO LANE RIVIERA BEACH, FL. 33404-6460 [RIVIERA BEACH, FL 33404 RIVIERA BEACH, FL 33404 RIVIERA BEACH, FL 33404 0.09 miles E 0.04 miles E 0.06 miles NE is 260,000] is 255,000) ‘$260,000 $185.19 sqit|$ 188.82 sqft] $185.19 soft.) $188.82 sq; | SALES OFFICE PROPERTY APPRAISER _ | PROPERTY APPRAISER V INSPECTION V INSPECTION V INSPECTION DESCRIPTION DESCRIPTION [ +()$ Adjustment | DESCRIPTION | +{-) $ Adjustment | DESCRIPTION | +(-} $ Adjustment CONV MTG. afcony MTG. 0/CONV MTG. Q 9/5/07 0111/45/07 ol 8/07 RESIDENTIAL [RESIDENTIAL RESIDENTIAL RESIDENTIAL Leasehold/Fee Simple FEE SIMPLE [FEE SIMPLE FEE SIMPLE [FEE SIMPLE Site 800 Sq.Ft. 800 Sq.Ft. 800 Sq.Ft. 800 Sq.Ft. RESIDENTIAL [LAKE -6,000/RESIDENTIAL LAKE TWNHSE TWNHSE TWNHSE TTWNHSE Quality of Construction GooD GOOD GOOD GQoD 0 o 0 a GOOD GOOD GOOD oop Total [Barms,| Baths | Total [Bdrms,| Baths Total [Barms.| Baths Total [Borms.| Baths st2[3alsf2 {3 si213 si213 Grass Living Area 1,377_sq,it. 1,377 sq.ft. 4,377 sqit. 1,377 sqft Basement & Finished NIA NIA N/A N/A Rooms Below Grade N/A NIA N/A WA Functional Utility STANDARD _[STANDARD. STANDARD STANDARD CENTRAL CENTRAL : CENTRAL CENTRAL STANDARD STANDARD STANDARD STANDARD OPEN PARK OPEN PARK OPEN PARK OPEN PARK PATIO PATIO PATIO PATIO NONE NONE NONE NONE + Net Adj, Gross Adj. |My research: did“ did not reveal any prior sales or transfers of the subject property for the three years prior to the effective date of this appraisal. Data Source(s) _1SC. My research x did = did not reveal any prior sales or transfers of the comparable sales for the year prior to the date of sale of the comparable sale. Data Source(s) ISC. Report the results of the research and analysis of the prior sale or transfer history of the subject property and comparable sales (report additional rior sales on page 3). {TEM SUBJECT COMPARABLE SALE #1 COMPARABLE SALE #2 [ COMPARABLE SALE #3 Date of Prior Sale/Transfer SALES INFO 8/07, 8/07 8/07 Price of Prior Sale/Transfer UNAVAILABLE. 192,780. 210,980 192,780 Data Source(s) PUBLIC RECORDS PUBLIC RECORDS PUBLIC RECORDS PUBLIC RECORDS Effective Date of Data Source(s) 1/29/08 1/29/08 1/29/08 1/29/08 THE SUBJECTS 36 MONTH AND THE COMPARABLES 12 MONTH Analysis of prior sale or transfer history of the subject property and comparable sales SALES HISTORY ARE LISTED ABOVE. Summary of Sales Comparison Approach ALL THREE SALES ARE THE MOST RECENT COMPARABLES FOR ANALYSIS AND WERE ALL SIMILAR =) TQ THE SUBJECT IN DESIGN, AGE, CONSTRUCTION QUALITY AND APPEAL. ALL SALES ARE FROM THE SUBJECT PROJECT. ALL SALES z WERE GIVEN CONSIDERATION IN THE DERIVATION OF THE SUBJECTS MARKET VALUE. 3 a, = 9 ua oO S Indicated Value by Sales Comparison Approach $ 255,000 uu indicated Value by: Sales Comparison Approach$ 255,000 Cost Approach (ifdeveloped)$ 255,685. Income Approach (it developed) $ > DUE TO LACK OF SUFFICIENT MARKET DATA, THE INCOME APPROACH IS GIVEN LESSER WEIGHT FOR EXISTING C 4) sw: fog PROPERTIES, SALES COMPARISON METHOD BEST REFLECTS ACTIONS OF TYPICAL BUYER/SELLERS. z . ° Sarg This appraisal is made X<¢ “as is", ~~ subject to completion per plans and specifications on the basis af a hypothetical condition that the improvements have been 5 ia } 3 completed, Le Subject to the following repairs or afterations on the basis of a hypothetical condition that the repairs or alterations have been completed, or subject to the ak i fe] following required inspection based on the extraordinary assumption that the condition or deficiency does not require alteration or repair: Zz co = hit of te iter and exterior areas ofthe subject propery, dened ecope of work, slalement of assumptions and filing a ae fined, of the real property that is the subject of this report is x Fat = Based on a complete visual Inspection conditions, and appraiser's certification, my (our) opinion of the market value, as $255,000 as of 1/28/08 which is the date of inspecti raisal, Fannie Mae Form 1004 March 2005 Freddie Mac Form 70 March 2005 Page 2 of 6 & 210 re - easr_l? pase Form 1004 — "WinTOTAL* appraisal software by a la mode, inc. — 1-800-ALAMODE File No. MN120607! Page #7) File # MN120607 Uniform Residential Appraisal Report ADDITIONAL C' COST APPROACH TO VALUE (not required by Fannie Mae) Provide adequate information for the lender/ctlent to replicate the below cost figuras and calculations. QUE TO THE LACK OF RECENT SALES IN THE Support for the opinion of site value (summary of comparable iand sales of other methads for estimating site value) SUBJECT MARKET AREA, THE SITE VALUE WAS DETERMINED BY THE ABSTRACTION METHOD. fo] ESTIMATED REPRODUCTION OR 5 REPLACEMENT GOST NEW OPINION OF SITE VALUE ae fe] Source of cost data_ MARSHALL & SWIFT DWELLING 1,377 SAL @$ 105.00 _. F5 Gualty rating rom cast service AVG Effective date of cost data 6/07 Soh @$ . < Comments on Cost Approach (gross living area calculations, depreciation, etc.) L fj DEP. BASED ON AGE/LIFE METHOD (ECON. LIFE- 60 YRS. W/A Garage/Carport 222 SgL@$ 50.00 fy REMAINING ECONOMIC LIFE OF 60 YEARS.) SUBJECTS LAND TO _|Total Estimate af Cost-New VALUE RATIO |S TYPICAL OF PROPERTIES N THE SUBJECTS. Less Physical Functional [External NEIGHBORHOOD. Depreciation Depraciated Cost ot improvements on = 155,685 "As-is" Value of Site (mprovements _ 5,000 NOTE: THE COST APPROACH |S NOT FOR INSURANCE PURPOSES. 60 _Years | INDICATED VALUE BY COST APPROACH INCOME APPROACH TO VALUE (not required by Fannie Mae) . Indicated Value by Incame Approach X Gross Rent Multiplier = Estimated Monthly Market Rent $ = Summary of Income Approach (including support for market rent and GRIM! L INCOME | PROJECT INFORMATION FOR PUDs (If applicable) No__Unit type(s) Detached >< Attached 's the devetoper/builder in contral of the Homeowners’ Association (HOA)? _ >< Yes Provide the following information for PUDs ONLY if the developer/bullder is in control of the HOA and the subject property is an attached dwelling unit, Legal Name cf Project. MARSH HARBOUR Total number of units sold 283 4 Total number of phases 4 Total number of units 402 Gj Total number of units rented 10 Total number of units for sale 15 Data source(s)_ SALES OFFICE __ Yes 2X No If Yes, date of conversion. Fe Was the project created by the conversion of esting buns) into a PUD? Does the project contain any mult-dweling units? ~~ Yes < No DataSource SALES OFFICE X Yes _"_No_ if No, describe the status of completion. Are the units, common elements, and recreation facilities complete? Yes >< No it Yes, describe the rental terms and options Are the common elements ieased to or by the Homeowners’ Association? POOL, CLUBHOUSE, GYM, GATED ENTRANCE, TENNIS COURT, COMMON AREAS Describe common elements and recreational facilities. Page 3 of 6 Form 1004 — "WinTOTAL" appraisal software by a la made, inc. —~ 1-800-ALAMODE = - EArt f ze PA Freddie Mac Form 70 March 2005 Fannie Mae Form 1004 March 2005 sys iouayes f OD OMPLAINT ADMINISTRATIVE Ci EXHIBIT # AGE az3U OF —> Uniform Residential Appraisal Report File # MN120607 This report form is designed to report an appraisal of a one-unit property or a one-unit property with an accessory unit; including a unit in a planned unit development (PUD). This report form is not designed to report an appraisal of a manufactured home or a unit in a condominium or 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 not 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 Teporting 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 compiete visual inspection of the interior and exterior areas of the subject property, (2) inspect the neighborhood, (3) inspect each of the comparable sales from at least the street, (4) research, verify, and analyze data from reliable public and/or private sources, and (5) report his or her analysis, opinions, and conclusions in this appraisal report. 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. DEFINITION OF MARKET VALUE: The most probable price which a property should bring in a competitive and open market under all conditions requisite to a fair sale, the buyer and seller, each acting prudently, knowledgeably and assuming the price is not affected by undue stimulus. Implicit in this definition is the consummation of a sale as of a specified date and the passing of title from seller to buyer under conditions whereby: (1) buyer and seller are typically motivated; (2) both parties are well informed or well advised, and each acting in what he or she considers his or her own best interest; (3) a reasonable time is allowed for exposure in the open market; (4) payment is made in terms of cash in U. S. dollars or in terms of financial arrangements comparable thereta; and (8) 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 casts are readily 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 lender that is not already involved in the property or transaction, Any adjustment should not be calculated on a mechanical dollar for dollar cost of the financing or concession but the dollar amount of any adjustment should approximate the market's Teaction 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 following assumptions and limiting conditions: 1. The appraiser will not be responsible for matters of a legal nature that affect either the property being appraised or the title to it, except for information that he or she became aware of during the research involved in performing this appraisal. The appraiser assumes that the title is good and marketable. and will not render any opinions about the title. 2. The appraiser has provided a sketch in this appraisal report to show the approximate dimensions of: the improvements. oe sketch is included only to assist the reader in visualizing the property and understanding the appraiser's determination Of its size. 3. The appraiser has examined the available flood maps that are provided by the Federal Emergency Management Agency (or other data sources) and has noted in this appraisal report whether any portion of the subject site is located in an identified Special Flood Hazard Area. Because the appraiser is not a surveyor, he or she makes no guarantees, express or implied, regarding this determination. 4. The appraiser will not give testimony or appear in court because he or she made an appraisal of the property in question, unless specific arrangements to do so have been made beforehand, or as otherwise required by law. 5. The appraiser has noted in this appraisal report any adverse conditions (such as needed repairs, deterioration, the Presence of hazardous wastes, toxic substances, etc.) observed during the inspection of the subject property or that he or she became aware of during the research involved in performing the appraisal. Uniess otherwise stated in this appraisal Teport, the appraiser has no knowledge of any hidden or unapparent physical deficiencies or adverse conditions of the property (such as, but not limited to, needed repairs, deterioration, the presence of hazardous wastes, toxic substances, adverse environmental conditions, etc.) that would make the property less valuable, and has assumed that there are no such Conditions and makes no guarantees or warranties, express or implied. The appraiser will not be responsible for any such conditions that do exist or for any engineering or testing that might be required to discover whether such conditions exist. Because the appraiser is not an expert in the field of environmental hazards, this appraisal report must not be considered as an environmental assessment of the property. 6. The appraiser has based his or her appraisal report and valuation conclusion for an appraisal that is subject to satisfactory completion, repairs, or alterations on the assumption that the completion, repairs, or alterations of the subject property will be performed in a professional manner. Freddie Mac Form 70 March 2005 Page 4 of 6 Form 1004 — "WinTOTAL" appraisal software by ata mode, inc. — 1-800-ALAMODE Ey uD it | 3 TaNX Fannie Mae Form 1004 March 2005 (File No. MN1 20607! Page #9} Uniform Residential Appraisal Report File # MN120607 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. | performed a complete visual inspection of the interior and exterior areas of the subject property. | reported the condition of the improvements in factual, specific terms. | identified and reported the physical deficiencies that could affect the livability, soundness, or structural integrity of the property. 3. | performed this appraisal in accordance with the requirements of the Uniform Standards of Professional Appraisal | Practice that were adopted and 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. | 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, untess 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 comparabie sale, unless otherwise indicated in this report. 7. | selected and used comparable sales that are locationally, physically, and functionally the most similar to the subject property. 8. | have not used comparable sales that were the result of combining a land 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 retords, public Jand 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 correct. 14. | have taken into consideration the factors that have an impact on vaiue 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 an the value and marketability of the subject property. 15. | have not knowingly withheld any significant information from this appraisal report and, to the best of my knowledge, all statements and information in this appraisal report are true and correct. 16. | stated in this appraisal report my awn personal, unbiased, and professional analysis, opinions, and conclusions, which are subject only to the assumptions and limiting conditions in this appraisal report. 17. | have no present or prospective interest in the Property that is the subject of this repart, and { have no present or Prospective personal interest or bias with respect to the participants in the transaction. | did not base, either 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. 18. My employment and/or compensation for Performing this appraisal or any future or anticipated appraisals was not conditioned on any agreement or understanding, written or otherwise, that | would report (or present analysis supporting) a predetermined specific value, a predetermined minimum value, a range or direction in value, a value that favors the cause of any party, or the attainment of a specific resuit or accurrence of a specific subsequent event (such as approval of a pending mortgage oan application). 19. { Personally prepared all conclusions and opinions about the real estate that were set forth in this appraisal report. If | relied on significant real property appraisal assistance from any individual or individuals in the performance of this appraisal or the Preparation of this appraisal report, | have named such individual(s) and disclosed the: specific tasks performed in this appraisal report. | certify that any individual so named is qualified to perform the tasks. | have not authorized anyone ta make a change to any item in this appraisal report; therefore, any change made to this appraisal is unauthorized and | will take no responsibility for it. 20. | identified the lender/client in this appraisal Teport who is the individual, organization, or agent for the organization that ordered and wilt receive this appraisal report. Freddie Mac Form 70 March 2005 Page 5 of 6 Form 1004 — "WinTOTAL" appraisal software by a la mode, inc. — 1-800-ALAMODE (PE WO. MIN cUOUL, Fage lus Uniform Residential Appraisal Report File # MN120607 21. The lender/client may disclose or distribute this appraisal report to: the borrower; another lender at the request of the borrower, the mortgagee or its successors and assigns; mortgage insurers; government sponsored enterprises, other secondary market participants; data collection or reporting services; professional appraisal organizations; any department, agency, or instrumentality of the United States; and any state, the District of Columbia, or other jurisdictions, without having to obtain the appraiser's or supervisory appraiser's (if applicable) consent. Such consent must be obtained before this appraisal report may be disclosed or distributed to any other party (including, but not limited ta, 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 a copy or representation of my signature, the appraisal report shall be as effective, enforceable and valid as if a paper version of this appraisal report were delivered containing my original hand written signature. 25. Any intentional or negligent misrepresentation(s) contained in this appraisal report may result in civil liability and/or criminal penalties including, but not limited to, fine or imprisonment or both under the provisions of Title 18, United States Code, Section 1001, et seq., or similar state laws. SUPERVISORY APPRAISERS 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 (ar the appraisal firm), is qualified to perform this appraisal, and is 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 ; Promuigated by the Appraisal Standards Board of The Appraisal Foundation and that were in place at the time this appraisal Teport was prepared. 5. lf this appraisal report was transmitted as an “electronic record” containing my "electronic signature,” as those terms are defined in applicable federal and/or state laws (excluding audio and video recordings), or a facsimile transmission of this appraisal report containing a copy or representation of my signature, the appraisal report shall be as effective, enforceable and valid as if a paper version of this appraisal report were delivered containing my original hand written signature. APPRAISER = MIKE NOBLET SUPERVISORY APPRAISER (ONLY IF REQUIRED) Signature” fi : Signature Name MIKE NOBLET ST.CERT.RES.REA. Name Company Name SUNCOAST APPRAISERS. Company Name Company Address 7550 NW 61 TERRACE, PARKLAND, FL 33067 Company Address Telephone Number 954-341-7775 Telephone Number Email Address SUNCOAST@MYACC.NET Email Address Date of Signature and Report 4/29/08 Date of Signature Effective Date of Appraisal 1/28/08 State Certification # State Certification # RD3827 or State License # or State License # State or Other (describe) State # Expiration Date of Certification or License State FL Expiration Date of Certification or License 11/30/2008 SUBJECT PROPERTY Did not inspect subject property .. Did inspect exterior of subject property from street Date of Inspection ADORESS OF PROPERTY APPRAISED 2009 NASSAU DRIVE 3605 RIVIERA BEACH, FL 33404-6460 APPRAISED VALUE OF SUBJECT PROPERTY $ 255,000 Did inspect interior and exterior of subject property Date of Inspection LENDER/CLIENT Name : Lito b neoramitigue os 7 Company Name HARTFORD MORTGAGE - COMPARABLE SALES Company Address 3600 S STATE ROAD 7 UNIT 220, MIRAMAR, ~ - Did not inspect exterior of comparable sales from street FL 33023 Did inspect exterior of comparable sales from street Email Address 9ADEBAYOMARLENE@YAHOO.COM Date of inspection Freddie Mac Form 70 March 2005 Page 6 of 6 Fannie Mae Form 1004 March 2005 AUNMINISTRAT IVE COMPLAINT EXHIBIT #4 = Gof PAGE Form 1004 — "WinTOTAL" isal software by ala mode, inc. ~ 1-800-ALAMODE Mae seoee ~ = Baroni 2 _Pasz >| { Uniform Residential Appraisal Report [File No. MIN120607] Page #17] File # MN120607 FEATURE ‘SUBJECT COMPARABLE SALE #4 COMPARABLE SALE #5 COMPARABLE SALE #6 Address 2009 NASSAU DRIVE 3605 973 TORTUGA LANE 1991 FREEPORT DRIVE 1984 ALAMANDA WAY RIVIERA BEACH, FL 33404-6460 [RIVIERA BEACH, FL 33404 RIVIERA BEACH, FL 33404 RIVIERA BEACH, FL 33404 Proximity to Subject 0.10 miles NE 0.10 miles SE 1.35 miles NE Sale Price $ 255,000 is 255,000 [s 255,000 $ 290,000 Sale Price/Gross Liv. Area $185.19 sqit|$ 214.83 sq.ft! $214.83 sgt) $210.14 sqft Data Source(s) _ SALES OFFICE SALES OFFICE SALES OFF /PROP APPR. Verification Source(s) V INSPECTION V INSPECTION \V INSPECTION VALUE ADJUSTMENTS DESCRIPTION DESCRIPTION | +(-) $Adustment |" DESCRIPTION | +(-) $ Adjustment | DESCRIPTION | +(-) $ Adjustment Sales of Financing CONV MTG. Concessions Date of Sale/Time PENDING. O| PENDING. 9/07 Location RESIDENTIAL_|RESIDENTIAL RESIDENTIAL RESIDENTIAL F4 Leasehold/Fee Simple FEE SIMPLE [FEE SIMPLE FEE SIMPLE FEE SIMPLE 4 Site 800 Sq.Ft. 800 Sq.Ft. 800 Sq.Ft. 800 Sq.Ft. oa View [RESIDENTIAL LAKE. -5,000| LAKE -5,000|/RESIDENTIAL Design (Style) TWNHSE TWNHSE, TWNHSE TWNHSE Ped Quality of Construction [GOOD GOOD LL GOOD Gooo eq Actual Age 9 (e) 0 9 BY Condition GooD GOOD GOOD GOOD fel Above Grade ~ (Tota [Barms,| Baths | Total {Bms.| Baths Total [Barms.| Baths Total {Bdrms.| Baths Room Count Ls] 2i3 {5/2 +2,5001 5 | 2 125 +2,5001 5 | 3 [25 Q rq Gross Living Area 1,377 saitt, 1,187 +7,600 41,187 sq.ft. +7,600 4,380. sgt 0 Basement & Finished NIA N/A N/A N/A Rooms Below Grade NIA N/A N/A N/A Functional Utility STANDARD __|STANDARD. STANDARD STANDARD Heating/Cooling CENTRAL CENTRAL CENTRAL CENTRAL [Energy efficient items ISTANDARD__|STANDARD [STANDARD STANDARD Garage/Carport OPENPARK [1 CAR GAR -5,00011 CAR GAR -5,000| OPEN PARK PorchyPatla/Deck PATIO PATIO PATIO PATIO POOL __|NONE NONE NONE NONE. DAYS ON MARKET | Net Adjustment (Total) + - |8 joo! X + -_|$ 100 + - Adjusted Safe Price Net Adj. % Net Adj. % Net Adj. % of Comparables Gross Adi. 7,9 %|$ 255,100|Gross Adi, 7.9 %/$ 255,100/Gross Adj. 41S 290,000 Report the results of the research and analysis of the prior sale or transfer history of the subject property and comparable sales {report additional prior sales an page 3). CTEM SUBJECT COMPARABLE SALE #4 COMPARABLE SALE #5 COMPARABLE SALE #6 Date of Prior Sale/Transfer SALES INFO 10/07 SALES INFO 8/07 Price of Prior Sale/Transter UNAVAILABLE 172,415 UNAVAILABLE 190,900 fej Data Source(s) PUBLIC RECORDS [PUBLIC RECORDS PUBLIC RECORDS. PUBLIC RECORDS Effective Date of Data Source(s) [1/29/08 4/29/08 1/29/08 1/29/08 THE SUBJECTS 36 MONTH SALES HISTORY AND THE Analysis of prior sale or transfer history of the subject property and comparable sales COMPARABLES 12 MONTH SALES HISTORY IS LISTED ABOVE. Analysis/Comments__COMPARABLE 4-5 ARE PENDING SALES OF SIMILAR UNITS FROM THE SUBJECT PROJECT AND ARE BEING PROVIDED TO LEND SUPPORT TO THE MARKET VALUE OF THE SUBJECT, AS REQUESTED AN OUTSIDE SALE IS BEING PROVIDED TO SUPPORT THE MARKET VALUE OF THE SUBJECT. DUE TO THE LOCATION OF THE SUBJECT PROJECT, THE 1 MILE RECCOMENDED GUIDELINE WAS EXCEEDED, HOWEVER IT |S STILL A RELIABLE INDICATOR OF VALUE FOR THE SUBJECT. RESEARCH DID NOT. LOCATE ANY SIMILAR COMPARABLES WITHIN A 1 MILE RADIUS. Freddie Mac Form 70 March 2005 Form 1004.(AC) — "WinTOTAL" appraisal software by a la made, inc. — 1-800-ALAMODE Fannie Mae Form 1004 March 2005 centranenn nan! 3 ADMINISTRATIVE EXHIBIT # COMPLAINT, OF “i HN | Building Sketch (File No. MN120607] Page #12! Sorrower/Client__ MIRACLE, LIVANA State FL. Zp Code 33404-6460 Propetty Address 2009 NASSAU DRIVE 3605 City RIVIERA BEACH County PALM BEACH Lender HARTFORD MORTGAGE THE TIDE THE TIDE First FLooR Secono FLOOR ToTay ae ENTRY PoRcH Pario TOTAL MASTER agorcou eer tr FIRST FLOOR SECOND FLOO 674 sa, FT. 703 sa. FT. 1,377 sa. FT. 22 sa, FY. 44 89, FT, 1,443 sq. FT. R { ! akites MARSH HARBOU a eommumits 19 case nome Form SKT.BidSki — "WinTOTAL" appraisal software by a la made, inc. — 1-800-ALAMODE PLAINT, S oO tu = = rg Ee 2 z = EXHIBIT #_< PAGE File No. MN120607] Page #13) Location Map Property Address 2009 NASSAU DRIVE 3605 City RIVIERA BEACH ‘ County PALM BEACH State FL. Zp Code_ 33404-6460 Lender HARTFORD MORTGAGE é 5 Fantom _ z = a s 3 Aramyin ee ee : 2" 8 Biter ms Fi 3 3 : = 3 > % = # z 2 23 Fe aye Nesthlike Blvd Hertha Bit aso io3a 7 £ serous oe ‘es See 4 owe Seat g ge ae pestle £ a B78 g Shinar? Sear a gz ° : Se oe gt a = x & on Etta tomer Consumer St 2 io : s Rare a foment: Vn aN Pea He Figuor co s al fivertet Ra Ze ae aaah Avi th St 4 ‘it Jim Se Mn te wae Se 5 Wane: Aon st \ ¢ wren se 2 w 0 34 Se, ee Ceas it g Pm 23 5 ik 2s < Foi GQ R tf BD A PRN = 2 Even F = We 2? 2 Riviera Beach 3 ve 3sch yee Kh ane py CRMICIO Hg : a San : Gramerey Patk Sty «Ave g 3 % Fa 3 aa ons sun gt vou tansy Pg “8 a2: 2 Mangonia Park, a ges | Fy BiMary's 7 2” sel 3 aan gt Medical 2 ain £ Gene Fe * 5 fin 2 est Palm Beach FS fie St g suas) = Anas OS 40th 31 ca *, Cursscacd Dy “oy, x % a 2% 809: EXHIBIT 7 GTS 2 | PAGE Pace Te E—E———eee Borrower Christine Larochelle “CL” stated in an interview with the FIU that she had agreed to act as a co-signer for Joseph Previlon at Clertech. CL stated that she was paid $3,000 for that one loan. CL stated that she believed that as a co-signor, she would not be responsible for any aspect of the loan. She stated that she did not receive any copies of the documentation she signed. She was also not aware until later that she had more than one loan, and that the loans were in her name only. Borrower Maria Monique Desroches stated in an interview with FIU that she found out about Smacview through a flyer she saw when she was thinking of buying a house. She had a business card that she received from Clertech. She stated that they promised that with her good credit score, she could buy a house with no money down and no closing costs. She claims that Clertech had her sign documents at their office, but that to her recollection, she never bought a house. She stated that she wasn't aware that she had any properties in her name until she started getting late notices. She tried to contact Smacview in June 2008, but their phone was disconnected. She claims that she was getting notices on five properties, including one in Tampa. She also stated that she did not receive copies of any of the documents she signed. Borrower Huberson Vildor stated in an interview with the FIU that he signed papers for his former employer, Smacview, to purchase a home. He stated that Smacview took care of everything, including the financing, finding the tenants, collecting the rents and making the payments. He stated that all he did was sign some papers. He referred the FIU to Charlie at Clertech, as "he would know about the transaction”. Employment and Income Misrep All 28 loans reviewed contained employment and income misrepresentations. It appears that Smacview accessed the Florida Department of Corporation’s database and obtained the names of corporations that were inactive. Between 04/13/07 and 06/21/07, Smacview submitted reinstatements of 13 companies to the Florida Department of Corporations, changing the contact name and addresses. These 13 companies were then used as the stated employers on the 28 loans reviewed. Fictitious written and verbal verifications of employment were then provided to the brokers and lenders. Then on 09/28/08, someone, allegedly Smacview, dissolved each of these 13 reinstated companies. One of the reinstated companies was System 3X-Perts, Inc. On 08/20/07, Deanna Shumaker, the former VP of the company, filed an affidavit with the State of Florida attesting to the fact that this company was dissolved in 2005; that someone unknown to her reinstated the corporation in his name; and that she had no knowledge of or relationship with this person. Based on multiple MARI reports filed by various lenders, the phone numbers provided on the loan applications for the alleged employers all went to similar voice mail systems. Not one of them listed an extension as belonging to the respective borrower or the party that allegedly provided the original verifications of employment. In many cases, the lenders have stated on their MARI reports that each phone number ONISTRATIVE COMPLAINT used did contain an extension for a party likely related to Manetirony Clervrain. None of the employer phone numbers provided on the loan applications are currently working numbers. Of the six borrowers interviewed, Huberson Vildor and Alexis Alectine both stated that they were former employees of Smacview. Neither loan application for these two borrowers reflected employment with Smacview. Also, corporate records for Clertech showed six of the borrowers identified as having been Directors with Clertech.com. Leon Achille, Gustave Michaud and Providence Cadet were all listed as Directors under Clertech.com’s Florida corporate filing. Fordy Eugene, Christine Larochelle and Alexis Alectine were all listed as Directors under Clertech.com’s Texas corporate filing. Based on interviews with Larochelle and Alectine, it is clear neither party knew their name was listed as a Director for Clertech. Mary Van Den Heuvel stated in an interview with FIU that she was employed at the time of the loan as a teacher, earning $42,000 annually. When shown the loan application which stated her employment as a Software Engineering Manager with Software Creationz, earning $11,497.25 per month, she was shocked. She confirmed that the information was completely fictitious. Mary stated that she just signed the papers, but did not review the papers that showed this misrepresentation of her income and employment. Alexis Alectine stated in an interview with the FIU that he was employed part- time with Smacview and full-time at the airport at the time of these loans. When shown the loan application stating an income of $8400 per month as a Software Engineering Manager with Software Conceptions, he stated that “if I made that kind of money, I wouldn’t have needed to do these loans”. He confirmed the information was fictitious. Alexis also confirmed that his wife’s stated employment and income, a Database Manager with Telecom Hospitality earning $6742 per month, was also fictitious. Alexis advised the FIU that his wife, Jocelyne Alectine, was legally blind and had never ’ worked. Down Payment & Loan Closing Misrep With the exception of the Smith Saint Jean loan, the HUD settlement statements on these loans showed earnest money paid and/or borrower funds brought to closing. The HUD settlement statements on these loans reflect borrower funds ranging from $1,448.56 to $49,201.23. All six of the borrowers interviewed confirmed with the FIU that they did not put any of their own money down towards the purchase of these homes, neither earnest money, nor any funds brought to the closings. Mary Van Den Heuvel stated to the FIU that while she did sign the HUD, she did not review the document and was not aware it falsely indicated that she paid $15,000 in earnest money and brought an additional $23,587.09 to close. Again, she confirmed that she never put any money into this transaction. Alexis Alectine stated to the FIU that he was told that Smacview would pay all the down payments required and closing costs. ADMIPISTRATIVE COMP EALN TL. RAI EXHIB! gg $< am GF Zz BHIDIT A! PAGS There were five settlement agencies used for the loans reviewed; Countyline Title Group, Inc. was the settlement agent on 17 loans, Express Title & Abstract of South Florida, Inc. was used on three loans, Advance Title Corporation was used on two loans, Attorney's Title Center was used on four loans and Costa Title was used on two loans. The eight loans for the six borrowers interviewed were all closed with either Countyline Title Group or Express Title & Abstract of South Florida. All of the HUD settlement statements show that the place of settlement on each loan was at the respective title company office location. However, Mary Van Den Heuvel confirmed in her interview with the FIU that she signed all of the loan documents at her home in the presence of only John Berns. Christine Larochelle confirmed in her interview with the FIU that she signed all of her loan documents at the Smacview office located at 3500 N. State Road 7 in Lauderdale Lakes, FL. Marie Desroches confirmed in her interview with the FIU that she signed all of her documents at the Smacview office. Finally, Alexis Alectine stated he and Jocelyne signed for four of the five loans at the Smacview office on 441. Alexis stated that they signed for the fifth loan at an office on Hollywood Blvd (Countyline’s office location). Note, all of these HUD settlement statements reflected borrower funds brought to close and all of the borrowers have verified that they did not bring funds to close. Also noteworthy is the fact that 20 of the 28 loans reviewed were notarized by a man named Charles Wein®. Charles Wein was the notary on all of the Alectine loans, as well as Mary Van Den Heuvel’s loan. These borrowers confirmed with the FIU that there was no notary present at any of their loan closings. Charles Wein was clearly notarizing documents outside the presence of the borrowers. Alexis Alectine stated to the FIU that he knew Charles “Charlie” Wein, as Charlie also worked with him at Smacview. Alexis stated that he was surprised to see Charles Wein’s signature as the notary on the documents he received for a foreclosure filing on one of the properties, as Charlie had not been there when he signed any of his loan documents. Alexis provided a copy of Charles Wein’s Smacview business card, which shows his title as Operations Manager. Charles Wein notarized loan documents for all five title companies involved in these loans. Forgery It is appears that each of these files contains forged documents. In each file, there appears to be a significant difference in the signatures on the initial documents, including the initial 1003 and purchase contracts, and the final documents, including the final 1003, HUD, etc. Mary Van Den Heuvel reviewed the loan documents with the FIU. Mary confirmed that the signature on the HUD and the final 1003 were her signature. She also confirmed that the signature on the initial 1003 and the purchase contract were not her signature. Attached below are two distinctly different signatures referred to above. ? Charles Wein has a lengthy criminal record involving multiple cocaine charges. deed fhe ond wad BE . aid | SAGE C+ OF g1/o8/og Final 1003 HUD Initial 1003 : Purchase contract Alexis Alectine reviewed the loan documents for his and Jocelyne’s loans with the FIU and confirmed that the signatures on the initial documents, including the initial 1003 and purchase contract were not their signatures, while the signatures on the final docs, including the final 1003 and HUD, were in fact their signatures. Attached below are samples of the two different sets of signatures within these loan files. fn 2mm somecaaen ot cams WY irate oF Sm TmNG mR Low Fy een pen LARTISCS, Bi nig moony aa nue rcdine Ue Urind Sa a cis aig er imi poring agerey sone Albyis Alectina. mm __ 02/28/08 ’ Purchase Contract File 18 TR Cage Stn OOH ae Sedan TONG ge mm Abecdlinteg _sajoaren Vi IT TOTS Geta IN BRE porapy aa aie ws Initial 1003 Purchase Contract ATIVE COMPLAINT a tte SS 2 Request for Appraisal Parti-Request =. = TS ae To (Name & Address of Appraiser): From (Name & Address): Mike Nobiet Hartford Mortgage Company Suncoast appraisers 3600 S State Road 7 Ste 341 Miramar, Fl 33023 (P) 954-967-2444 (P} 954-341-7778 (F) 954-575-4599 (F) 954-967-2486 OV Adis Applicant (Name & Address): Lenday (Name 6/Addresé): Livana J. Miracle Lender Case bo. : Unassigned Authorized by (Signature): Title: Date; : PROCESSOR b225/2008 rty and Mortgage information : Property Type: Occupancy Status: Type of Loan 7 (Detached 7] Primary Residence Conventional f@ Purchase DAttached Cl Second Home COFHA Ci Second Mortgage C1 Cash-Out Ref Ci Condo , Clinvestment Property {[] VA [No Cash-Out Refi Pup ; 1 USD¢vRura} Housing (] Construction (co-op Service D1 Construction-Perm No. of Units 4 CO Other OJ Other Sales Price; $ Estimated Value: $ Loan Amount: $ 240,000 ° 240,000 216,000.90 Property Addresa: 4960 FLAMINGO PL. UNIT 4803 Estate Will Be Held In: . NORTH LAUDERDALE, FL. 23068 Fee Simple (7) Leasehold County: Broward expiration date: Legal Description: . Escrow Company: . Title Comnany; Listing Agent: Selling Agent. Part Ill - Appraisal information. as Appraisal Type: interiovExteriorFut) 7] Exterior Only C) Market Rent analysis Cl Land Appraisal Estimate of Value Should Be: OAs is CAs Completed D Invoice Client C Other DO Creait Card Calyx Forth - reqap.tem (01/07) Omir aire ADMINISTRA EXHIBIT # race) oP S—rage 7) AGREEMENT SMACVIEW In this Agreement, which shall be effective as of the date above, the term "Buyer" means or refers te the buyer or buyers listed below who have signed this Agreement. The words "Seiler’ mean or refer to Smacview, Inc., a Florida corporation andits successors and/or assigns. If the first letter of a word is capitalized in this Agreement, that word will have the meaning given to it in this Agreement or in the Covenants (as defined in paragraph 1 of this Agreement}. Screen Buyers Livana J Miracle Property Address: 1960 Flamingo Place Unit #4803 City: Riviera Beach, State:F] Country: Usa Zip Cade: 33404 Home Telephone Home Fax: eee Office Telephone: Office Fax: i . E-Mail Address: Cellular Phone(s): Social Security No(s): Name and address to which all of Buyer's notices are to be given (leave blank if same as above); Name: Street Address: City: State: Country: Zip Code: Home Telephone: Home Fax: Offi Office Fax: ice Telephone: Cellular Phone(s}: E-Mail Address: . Purchase Price: The Purchase Price of the Dwelling Unit has been determined as follows: Basic Purchase Price & 240,000 Plus Extras/Options (if any) & (set forth in separate addendum) Lot Premium $ TOTAL PURCHASE PRICE ._ 240,000 s The Total Purchase Price of the Owelling Unit shall be paid as follows: Payment Due Date Amount Initial deposit % Upon execution hereof g Balance (subject to adjustments, At Closing g extras and prorations) In addition to the Purchase Price shown above, Buyer also agrees to pay the seller's Reimbursement Charge, all Glasing costs and other sums required to be paid by Buyer under this Agreement At the Present time, the costs for which dollar amounts can be are: &. 1.50% Develaper Reimbursement See paragraph 13 on Page 6. b. Initial Capital Contribution ta Homeowners Association See paragraph 13 on Page 6. These charges are subject to adjustment as provided in Paragraph 13 of this Agreement, and are explained in more detail in that Paragraph, as are other closing costs which cannot be computed at this time. BUYER: ‘SELLER: ALWVUNISTRATIVE COMPLAINT. Print Name: a hwhne TNR BLE EXHIBIT #. Print Name: ee —Siesident______ page OF Date: _jasypR pate:__4-24~-0§ Smecview Contact Page 4 of 14 P) 73 Br Init Lowe | wyer(s} initials a 3 FAGE. Date--—~-——_a.ts = THE BUYER OF A ONE-FAMILY OR TWO-FAMILY RESIDENTIAL DWELLING UNIT HAS THE RIGHT TO HAVE ALL DEPOSIT FUNDS (UP TO ...... PERCENT OF THE PURCHASE PRICE) DEPOSITED IN AN ESCROW ACCOUNT. THIS RIGHT MAY BE WAIVED, IN WRITING, BY THE BUYER. (Buyer to initial the Paragraph below) BY BUYER INITIALING ON THE LINE PROVIDED BELOW, BUYER WAIVES THE RIGHT TO HAVE THE DEPOSITS PLACED IN ESCROW AS DESCRIBED ABOVE: Buyer(s) Initials Ser OE Tu Se BUYER HEREBY ELECTSTo WAIVE ITS RIGHT TO HAVE DEPOSIT FUNDS (UP TO 10% OF THE PURCHASE PRICE) DEPOSITED IN AN ESCROW ACCOUNT, AND ACKNOWLEDGES AND AGREES THAT NO PORTION OF DEPOSITED FUNDS SHALL BE DEPOSITED IN AN ESCROW ACCOUNT. In the event Buyer does not waive the above escrow requirement, pursuant to Paragraph 2 of this Agreement, Buyer may be charged at closing any interest which Seller pays to borrow money, in an amount equal to the funds held in escrow for construction purposes onty), for a period not to exceed 12 months, but are placed at reread for any interest actually accrued on the escrow account (only feet are placed at Interest), or the Buyer may be charged at closing an amount equal to the Premium for the applicable portion of the bond ‘securing such portion of his or her deposit (the “interest Charge”). guarantees or promises, expressed or implied, with respect thereto by Seller or any of Sellers agents, employees or representatives or any independent contractor except those which have been Specifically set forth in this Agreement. At closing, all deposits not Previously disbursed to Seller (and any interest eamed thereon, if any) will be released to Seller and Buyer will be given a credit against the Total Purchase Price for all deposits, excluding any interest earned thereon. if Buyer defaults, Seller is entitled to retain all deposits {and any interest eamed thereon, if Reference in the balance of this Agreement to "Buyer's deposits" shail not include any interest actually earned thereon. Seller May select the type of account in which to invest the deposits in its sole and absolute discretion, and nothing in this Agreement shail require Seller or the Escrow Agent to Place the deposits in an interest bearing account. Except as permitted below, all of Buyer's deposits will be held in escrow by COUNTYLINE LAND TITLE GROUP ("Escrow Agent’), with offices at 603 Hollywood Blvd, Hollywood, Fi, 33024, in accordance with the escrow if Buyer so requests, Buyer may get a receipt for Buyer's deposits from the Escrow Agent. Seller can change escrow agents (as long as the new escrow agent is authorized to be an escrow agent under applicable law), in which Case Buyer's deposits may be transferred to the new escrow agent at Seller's direction, In the event that Buyer does not waive its tight to have deposits Placed in an escrow account, Seller shail place the portion of the it is it Agent, and the release of the deposited funds shall be in accordance with §501.1375, Florida Statutes. When money ‘Smacview Contract Page 2 of 14 “MISTRATIVE COM tan Loc : exnipiT #7 a3 oe ee OOF ea in the event that closing occurs, Buyer shall then have No right to place a claim on any escrowed funds for breach of this Agreement. on whether or not Buyer qualified for or obtains a mortgage from any lender. Buyer will be solely responsible for making his own financial arrangements. Seller agrees, however, to cooperate with any lender Buyer chooses and to Coordinate closing with such lender, if, but only if, such lender meets the Seller's closing schedule and Pays Seller the proceeds of its mortgage at closing. In the event that lender does not pay Seller these proceeds at closing, Buyer will Not be allowed to take possession of the Dwelling Unit until Seiter actually receives all the funds and such funds have cleared, Specifically agrees that Changes in the dimensions of rooms and balconies, in the location of windows, doors, walls, Partitions, utility (including, but not limited to, electrical, cable and telephone) lead-ins and outlets, alr-conditioning equipment, ducts and components, lighting fixtures and electric panel boxes, and in the general layout of the Dwelling Unit, may be made by Seller in its discretion. In furtherance of the understanding and agreement Stated abova, Buyer acknowledges and agrees that it is a widely observed Construction industry practice for Pre-construction pians and specifications for any building to be changed and adjusted from time to time in order to accommodate on-going, “in the field" construction needs. These changes and adjustments are essential in order to Permit all components of Smacview Contract Page Sor 4 ADMINISTRATIVE COMPLAINT, _ Buyers) initials (2g -8 Date-. and of the street eammen oe ne Nin Ine nature and layout of the and on which construction is to take place and of the street, common areas and other features of the Community, Buyer understands and agrees: The Dwelling Unit may be constructed as a reverse ("mirror image") of, or otherwise in @ manner different from, that illustrated in the floor and building plan of the applicable model and building (as shown in the condominium documents or in any are various methods for calculating the square footage and that the measurements of the Unit and facilities contained in sales brochures are based upon architectural measurements. Accordingly, the size of the Unit and these facilities may vary by more than a nominal amount. This paragraph does not limit the generality of Seller's rights, set out elsewhere in this Agreement, to make other changes in the Dwelling Unit, the Community and the respective The agreements and waivers of Buyer contained in this Paragraph will survive (continue to be effective after) closing. other decorator accessories, lamps, mirrors, graphics, pictures, piants, wall-hung sheives, wet bars, intercoms, kitchen accessories, linens, window shades, security systems, certain built-in fixtures, carpets of ather floor coverings and colors, wood trim, other upgraded items, planters, ‘Screening, landscaping and any other items of this nature Buyer further understands and agrees that certain items which may be included with the Dwelling Unit or shown in models, such as tile, cabinets, wood, Stain, grout, wall and ceiling textures, cultured marble, mica and availability and changes by manufacturer from these shown in the models or in iltustrations or included in Seller's Plans and Specifications or in the published list of standard items (if any). If circumstances arise which, in Seller's {if any), Buyer recognizes that certain Colors as shown in displays or in the models, including, but not limited to, roof, carpeting and wood stain, will weather and fade and may not be duplicated precisely. If Seller allows Buyer to select certain colors and/or materials in the Dwelling Unit (which Seller is not obligated to do), Buyer understands and agrees that Buyer must submit his selections to Seller in writing within 7. insulation: Efficiency. Seller has advised Buyer, as required by the rules of the Federal Trade Commission, that it-currently intends to install in connection with the Dwelling Unit, the following insulation: 8. Fiberglass blanket and/or Polyurethane Batt Insulation and/or AL-Foil Batt Insulation and/or AL-Foil Buyer also acknowledges receipt of the information brochure Prepared by the Department of Community Affairs regarding energy efficiency ratings. All insulation and energy efficiency rating information is subject to Seller's rights, under this Agreement, to make changes in Seller’s Plans and Specifications, and to limit Seller's liability to Buyer, 9. Completion Date. The Estimated Com Pletion Date is Seller's best, present estimate and is neither a representation nor a warranty that construction of the Dwelling Unit will be com pleted by that date, Notwithstanding the foregoing, in compliance with the requirements for the “Improved Lot" exemption under Section 171 0-6(b) of the Interstate Land Sales Full Disclosure Act (15 U.S.C. 1701, et seq.), Seller is unconditionally obligated to complete and deliver the Dwelling Unit to Buyer within not more (24) months from the date of execution of this Purchase Agreement by Buyer; i ipport a defense based upon impossibility of performance under applicable | the Dwelling Unit shail not be deemed to have been completed unless the Dwe useable for the purpose for which the Dwelling Unit was purchased and has extended to it and available for service tobe initlated by Buyer. complete and deliver the Dwelling Unit within aie ADMINISTRATIVE COMP LAINE ‘age mmm menecice ME xt Lots” exemption under 15 U.S.C. Section 1702(a)(2) and that Nothing contained in this Agreement shall be construed or shail operate in a manner inconsistent with the Seller's contractual Obligation to complete the Dwelling Unit within the time required for compliance with the foregoing exemption, 11. Inspection Pri C : Non-int it (e) - Buyer will be given an opportunity prior to Closing, on the date and at the time scheduled by Setter, to inspect the Dwelling Unit with Seller's representative. At after closing, but Seller's obligation to correct will not be grounds for deferring the Closing, nor for imposing any condition on closing. Ne escrow or holdback of closing funds will be Permitted. if Buyer fails to take advantage of his right to a Pre-closing inspection on the date and time scheduled, Seller will not be obligated to reschedule an inspection prior to or after closing. Buyer acknowledges that all matters Pertaining to the initial construction of the Dwelling Unit will be handled by Seller and Seller's representatives. Buyer may not order any work on the Dwelling Unit, other than Prepaid options or extras that Selter agrees in writing to provide, until after closing. Buyer recognizes that Seller is not obligated to agree to provide extras or options. Buyer can examine Seller's Plans and Specifications at Seller's business Office, during regular business hours by making an appointment to do so in advance. 12. Closing Date. Buyer understands that Seller has the right to schedule the date, time and place for of one of Seller's employees or agents stating that this notice was given or mailed will be deemed conclusive. After the notice is given or mailed, and if requested by Buyer, Seller or its agents will send a written ‘Smacview Contract Page 5 of 14 ADMINISTRATIVE costae — aa i pans pags b> is ‘ormation and instructions. This written contirmation is given merely as a Courtesy and is not the format notice to close. Accordingly, it does not need to be received by any Particular date prior to closing. Buyer agrees, however, to follow all instructions given in any such notice and written confirmation. 13. Closing. The term "closing" refers to th Buyer and ownership changes hands. Buyer's ownership is referred to as “title”. At closing Buyer shall pay ail cash and execute and deliver ail instruments required to close this transaction, Seller promises that the title Buyer will receive at closing will be goad, marketable and insurable title (subject to the permitted exceptions fisted or referred to below). Buyer will receive two (2) dacuments at closing which Buyer agrees to accept as proof that his title is as represented above: a Awritten commitment from a title insurance company licensed in Florida agreeing to issue a policy insuring title (American Land Title Association Owner's Policy, Standard Form B) or the policy itself. This commitment (or policy) and other standard exceptions for similar Property; (iif) All laws, and all restrictions, covenants, Conditions, limitations, agreements, reservations and easements recorded in the public records of Broward County, Florida, including, without limitation, Zoning restrictions, Property use limitations and obligations, easements (rights-of-way) and agreements relating to telephone lines, water and sewer lines and other utilities; (iv) The Declaration of Covenants, documents which Seller, in its sole discretion, believes to be Necessary or appropriate) which are tecorded, now or at any time after the date of this Agreement, in the public records of Broward County, Florida; (v) Pending governmental Jiens for public improvements as of closing and installments for assessments for Certified governmental liens which Buyer understands, however, that no limitation on Buyer's title prohibits construction of the Dwelling Unit, or the use of it as a residence, Subject to the Homeowners’ Documents including, but not limited to, the Covenants, If at least thirty (30) days prior to closing, Buyer objects to the title company Seller has selected and if Buyer is obtaining financing with the assistance of a federally related mortgage loan, Seller will instead give Buyer a credit for the promulgated rate established by the Florida Insurance Commissioner for such title commitment (taking into account any available re-issue credits). In any event, Seller shall not be required to deliver an abstract of title, b. A special warranty deed. At closing, Seller Promises to give Buyer a special warranty deed to the Dwelling Unit, subject to the Permitted exceptions listed above, . Buyer will also receive the following documents at Closing: 1) a Bill of Sale far any appliances included in the Dwelling Unit, 2) Seller's form of Owner's ("no tien") Affidavit, 3) FIRPTA (non-foreign) affidavit, and 4) Acknowledgment, Receipt and Compliance Agreement prepared by Seller's counsel. When Buyer receives the special warranty deed at closing, Buyer will sign all Papers that Seller and or its counsel deems necessary or appropriate. Title, for all purposes, shall be deemed good, marketable and insurable if Seller is able to deliver an owner's title insurance policy for the Dwelling Unit subject ‘only to the permitted exceptions set forth herein. if Seller cannot Provide the quality of tithe described above, Seller will have a reasonable period of time (at least sixty (60) days) to correct any defects in title, but Seller is not obligated to da so. If Seiler cannot or elects not to correct the title defects, Buyer will have two options: (a) Buyer can accept title in the condition Seller offers it without any reduction in the Total Purchase Price, or (6) Buyer or Seller can cancel this Agreement and Buyer will receive a full refund af his deposits. Seller will be relieved of all obligations under this Agreement when Seller tefunds the deposits to Buyer, 14, Additional Expenses. Buyer understands that, in addition to the Total Purchase Price for the Dwelling Unit, Buyer must Pay certain additional expenses, fees and costs when title is delivered to Buyer at closing, These include: Smacview Contract ADMINISTRATIVE COMPLAINT Page 6 of 14 7 a EXMIBIT 7 samt Lore | ee nee nace base tOraccl33 i : AGE, ee ee Percent (1.50%) of the Total a urchase Price (and of any charges for options or extras now or hereafter contracted for which are not included in officially the Purchase Price). This charge will be used-to Pay for the following Closing costs: (i) the costs of recording the deed (currently, Tecording fees are $10.00 for the first page of an instrument and $8.50 for each additional page); (ii) for documentary stamp taxes (presently, documentary stamp taxes are $.70 for each $100.00 promulgated by the Florida Insurance Commissioner (taking into account applicable reissue rates and new home credits, if any), whether obtained from Developer's closing agent, or elsewhere; and (iv) to Pay or to reimburse b. Loan fees, closing Costs, escrows, appraisal fees, credit report fees, lender's title insurance premiums, prepayments and all other expenses charged by any lender or Mortgage broker (if any) giving Buyer a mortgage, if applicable. e. A reimbursement to Seller for any utility, cable, satellite or interactive communication deposits or hook-up fees which Seller may have advanced prior to closing for the Dwelling Unit, other than any such charges which are the responsibility of the Association. The amount of this charge is naw unknown, f. A charge of $25.00 for title exami ination and $25.00 for a Computer update and re-certification of title “to the Dweiling Unit. g. Coordinating closing with Buyer and/or Buyer's lender, including, without imitation, charges for messenger expenses, long distance telephone calls, photocopying expenses, telecopying Charges and others. The amount of these charges is now unknown. Additionally, if Buyer obtains a loan and elects to have Seller's closing agent act as “loan” Premiums required (at promulgated rate) for any title endorsements, and for the cost of Couriers, overnight delivery Services, photocopies, long distance telephone and facsim le charges and any other expenses incurred in connection therewith. The amount of these charges is now unknown. : he Any charge for any options or upgrading of standard items included, or to be included, in and/or with the Dwelling Unit as agreed to in writing by both Buyer and Seller, if nat Previously paid. b The late funding charges specified in Paragraphs 2, 3 and 11, if applicable. The amount of any such charges is now unknown. i. The “Interest Charge” described in Page 1 of this Agreement, if Buyer does not waive its right to have its deposit (up to ten percent (10%) of the Total Purchase Price) placed in an escrow account and/or any bond premium as described in Paragraph 2, if applicable. Current expenses of the Dwelling Unit (for example, taxes and govemment assessments and current monthly assessments of the Association) will be adjusted between Buyer and Seller at closing as described in the closing statement. The amount of this Proration is now unknown. In addition, at closing, Buyer shail Prepay the next the aggregate on the Community rather than ona home-by-home basis, Seller will pay those taxes in full, but Buyer will pay to Seller at Closing the Dwelling Unit's allocable share, prorated from the scheduled date of closing, of those taxes (if the taxes are then known), or the Dwelling Unit's allocable share (so prorated) of Seller's estimate of those taxes (if the taxes are not then known), subject ta readjustment at Seller's or Buyer's request when the actual tax bill is received. This subparagraph shall survive (continue to be effective after) closing. If Seller determines taxes for the year of closing will be or have been assessed on a home-by-home basis, Buyer will be responsible for paying the tax maximum discount available, determined as of the scheduled closing date. Seller will not be obligated to pay its share of those taxes to Buyer, however, until Buyer presents to Seller the actual tax bill for the Dwelling Unit. Smacview Contract Page 7ot 1 ADMINISTRATIVE COMELAINE, 27 | EXHIBIT # owe fits _ ; ce oF ease lS eng O3f Notwitnstanding the foregoing, if a separate tax bill for the Dwelling Unit has been issued for the year of closing, then at the closing, taxes for the Dwelling Unit will be prorated based upen such tax bill, This subparagraph shail survive (continue to be effective after) closing. 15, Adjustments with the Association. Buyer understands that Seller may have to advance money to or 16. Default. If Buyer fails to honor any of Buyer's promises or to perform any of Buyer's obligations under this Agreement (including making scheduled deposits and other Payments), Buyer will be in “defauit’. If Buyer is still in defauit five (5) days after Seller sends him natice of it, Seller can cancel this Agreement. If, however, Buyer's default is in failing to close on the scheduled date, Seller can cancel this Agreement upon written notice to Buyer without giving Buyer any prior (or subsequent) notification or opportunity to close at a later date. and deliver them directly to Seller. Buyer and Seller agree to this measure of damages because there is no other Precise method of determining Seller's damage. /f Buyer defaults and except as maybe provided below, Buyer Promises nat to sue for the return of any part of his deposits or other payments. Any damage or loss that occurs to the Dwelling Unit while Buyer is in default will not affect Seiler's rights arising from such default. The remedies afforded Seller in this Paragraph shail constitute Seller's sole and exclusive remedies, Buyer will give Selter twenty (20) days' written notice of any default by Seller under this Agreement, and if Seller does not thereatter cure the default within such twenty (20) day period (unless such default cannot be cured within such twenty (20) day period in which case Seller shall have such additional time as may be necessary to cure the default so long as Seller is diligently attempting to cure same and Provided further that the foregoing shail not Without limiting the generality of Paragraph 33 of this Agreement, this Paragraph 15 will survive (continue to be effective after) closing. 17. Litication. The prevailing party in any suit or other proceeding brought by either Buyer or Seller with respect to this Agreement will be entitled to recovery of its reasonable attorneys‘ fees and costs incurred in such suit closing. 18. Maintenance Fees. Buyer understands that the Estimated Operating Budget (the “Budget") provides only an estimate of what it will cost to run the Association during the period of time stated in the Budget. Neither the monthly assessments for the Dwelling Unit payable to the Association shown in the Budget, nor the level of assessments payable to the Association, are guaranteed, nor the Association may make changes in its applicable Budget at any time to cover increases or decreases in actual expenses or estimates, Without limiting the generality of paragraph 26 of this Agreement, those changes will not give Buyer any right to cancel this Agreement. 19. Seller's Use of the Community. As long as Selfer owns a Dwelling Unit, or any other portion of the Community, Seller and its affiliates, invitees, licensees, contractors and subcontractors (collectively, “Permitees”), can keep offices and models within the Community. Seller and its Permitees may show these Dwelling Units, erect advertising signs and do whatever is necessary, in Seller's opinion to help sell or lease the Dwelling Units or develop, manage, service or repair any portion of the Dwelling Unit and the Comm unity, but Seller's use of the Dwelling Unit within the Community must be reasonable, in Seller's opinion, and cannat unreasonably interfere, in Seller's opinion, with Buyer's use and enjoyment of the Dwelling Unit. SELLER OR ITS AFFILIATES, OR BOTH OF THEM, LIABLE OR SUE SELLER AND/OR ITS AFFILIATES FOR “ANY DAMAGE OR INJURY ARISING FROM OR CONNECTED WITH ANY OF THE ACTIVITIES DESCRIBED ABOVE. “Affiliate”, for the purposes of this Agreement, means a person or entity which (either directly or indirectly, through one or more intermediaries) controls, is in common control with or is controlled by, another person or entity, and any person or entity that is a director, trustee, officer, employee, agent, partner, shareholder, subsidiary or Smacview Contract Page 8 of 14 ; ' Abi ain E COMPRADEE La EXHIBIT # Without limiting the generality of paragraph 33 of this Agreement, this Paragraph 18 will survive (continue to be effective after) closing. 20. Sales Commissions. Seiler will pay all sales commissions due its in-house sales personnel and to the co-broker, if any, listed on Page 1 of this Agreement (if the Space on page 1 for a co-broker is left blank, it shail mean that Seller has not agreed to Pay any co-broker). Seller has no responsibility to pay any sales commissions to includes, without limitation, Buyer's obligation to pay or reimburse Seller for all commissions, damages, and other sums for which Seller may be held liable and all attomeys' fees and costs actually incurred by Seller (including those for appeals), regardless of whether a lawsuit(s) is actually brought or whether Seller ultimately wins or loses. Buyer's agents and/or dual agents). As Seller's agents, they owe the following duties: {i) to Seller, a fiduciary: duty to represent the interests of, and use utmost care, integrity, honesty and loyalty to, Selter, and Gi) to both Buyer and Without limiting the generality of paragraph 33 of this Agreement, this Paragraph 19 will survive (continue to be effective after) closing. A change of address notice is effective when itis received. All other written Notices are effective on the day they are properly sent (and all permitted non-written notices to Buyer are effective on the date given by Seller), whether or not received, unless receipt is required specifically in portions of this Agreement. 22, Transfer or Assign ment. Buyer has no right to assign, sell or transfer his interest in this Agreement Seller with or without cause. To the extent that Seller consents to any such assignment, said consent may be conditioned in any manner whatsoever, including, without limitation, charging an assignment or transfer fee. Any assignee must fully assume all of the obligations of Buyer hereunder by written agreement for Seller's ‘benefit, in form and content acceptable to Seller, a counterpart original executed copy af which shall be delivered to Seller. Without limiting the generality of the foregoing, Buyer shall not, prior to closing, list the Unit for resale with a broker or allow the Unit to be listed on any multiple listing service for resale. if Buyer is a corporation, partnership, limited lability company, other business entity, trustee or nominee, a transfer (whether voluntary, involuntary, by operation of law or Seller may assign or transfer freely any or all of its rights and obligations under this Agreement (including its rights in and ta Buyer's deposits and ail other payments made by Buyer), to any affiliated or nonaffiliated party, or to any lender providing financing for all or any portion of the Dwelling Unit, the Community and/or the surrounding Properties. 23, Limitation of Sales. Seller reserves the tight to limit the sale of homes in the Community and to fefuse, in its sole discretion, to sell more than one home to any buyer or te any group of affiliated buyers. __ 24." Others Bound by this Agreement. ‘if Buyer dies or in any way loses legal control of his affairs, this 25. Public Records. Buyer authorizes Seller to record the documents needed to establish and operate Smacview Contract Page 9 of 14 i, {Bt tf ppMINISTRAL VE COMP EINE aes ee LE KHIBIT #¢ A ne a AIST GSCSTTIETHS, WNICN Seller deems necessary or appropriate, in the Public Records of Broward County, Fiorida. Neither this Agreement nor any notice or memorandum hereof (nor any Lis Pendens, except to the extent permitted under Paragraph 15 herein). . ility. Any disputes that arise or develop under this Agreement will be settled according to Florida law. Buyer and Seller agree that venue is Proper in Miami-Dade County, Florida. If any part of this Agreement violates a Provision of law, the law will control. In such case, however, the rest of the Without limiting the generality of the foregoing, it is Seller's and Buyer's mutual desire and intention that all of this Agreement be given full effect and be enforceable strictly in accordance with their terms. , The following sentence will Supersede and take precedence over anything else in this Agreement which is in conflict with it, if any provisions serve to: (1) limit or qualify Seller’s obligation to complete the Dwelling Unit in the tine required In paragraph 8 hereof, or (2) limit Buyer's remedies in the event that such 27, Changes. Seller May, in its sole and absolute discretion, make any and ail changes in the Homeowners’ Documents as it, governmental authorities having jurisdiction thereof, title Insurance companies, or mortgage lenders require or deem necessary or appropriate. Without limiting the generality of paragraph 33 below, this Paragraph 26 will survive (continue to be effective after) closing. 28. Time of Essence. The performance of all obligations by Buyer on the precise times stated in this Agreement is of absolute importance and failure to so perform on time is a default, time being of the essence. ° 29, aint Obligation. If more than one person signs this Agreement as Buyer, each will be equally liable for full performance of all Buyer's duties and obligations under it and Seller can enforce it against either as. individuals or together. : 30. Disclaimer of Implied Warranties. Specimen copies of any manufacturers’ warranties received hy Seller will be passed through to Buyer at closing and are not expressly warranted by Seller, As a specific inducement to Seller to execute this Agreement, Buyer acknowledges that Seller, its employees, agents, brokers and other representatives have made no additional warranty, representation, guarantee To the maximum extent lawful all implied warranties of fitness for a particular Purpose, merchantability and habitability, all warranties imposed by statute and alt other implied warranties of any kind or character are Specifically disclaimed. Seller has not given and buyer has not relied on or bargained for any such warranties. As to any implied warranty which cannot be disclaimed entirely, all Secondary, incidental and Consequential damages are specitically excluded and disclaimed (claims for such secondary, incidental and Consequential damages being clearly unavailable in the case of implied warranties which are disclaimed entirely above). Without limiting the generality of paragraph 33 below, this paragraph 29 will survive (continue to be effective after) closing. 32. Retum of Homeowners’ Documents. !f this Agreement is canceled for any reason, Buyer will retum ‘Smacview Contract Page 10of 14 ISTRATIVE COMBLGIME ae ~ mK Gh Foo. met RE to Seller ail of the Homeowners’ Documents delivered to him in the same condition received, reasonable wear and tear excepted. If Buyer fails to retum the Homeowners’ Documents, Buyer agrees to pay Seller $50.00 to defray the cost of preparation, printing and delivery, which sums Seller may deduct from any deposits ar other sums to be returned to Buyer. 33. Waiver, Recording. Seller's waiver of any of its rights or remedies or failure to enforce any of its Tights or remedies (which can only occur if Seller waives any right or remedy in writing) will not waive any other of Seller's rights or remedies or prevent Seller from later enforcing alt of Seller's rights and remedies under other circumstances. Neither this Agreement, nor any notice or memorandum hereof (nor any Lis Pendens, exceptto the extent permitted under paragraph 15 herein), may be recorded. Any such recordation by Buyer will be an immediate default, upon which Seller may, in Seller's sole discretion, cancel this Agreement without notice to Buyer. Seller shail have no obligation to grant any grace period or other right to cure, in such event. 34, Survival. Only those provisions and disclaimers in this Agreement, which specifically state that they shall be in effect after closing, will survive (continue to be effective after) closing and delivery of the deed. All other provisions shail be deemed merged into the deed. 35. Substantial Completion. Whenever this Agreement requires Seller to compiete or substantially complete an item of construction, that item will be understood to be complete or substantially complete upon the issuance of a temporary or final Certificate of Use and Occupancy or Certificate of Completion by the City of North Lauderdale or any other applicable governmental agency. Notwithstanding the foregoing, however, the Dwelling Unit will not be considered complete or substantially complete for purposes of this Agreement unless the Dwelling Unit is physically habitable and usable for the purpose far which the Dwelling Unit was purchased. The Dwelling Unit will be considered so usable if it is ready for occupancy and has all necessary and customary utilities extended to it, and available for service to be initiated by Buyer. 36. Risk of Loss. If the improvements constituting or within the Community are damaged by fire or other casuaity before delivery of the Special Warranty Deed, Seller shall restore the improvements and the closing date hereunder shall be extended, if necessary, provided that the foregoing shall not apply to nor be deemed to extend Seller's absolute obligation to complete and to deliver the Unit to Buyer within the time period required under paragraph 8 of this Agreement. 37. Local Agent. If requested by Seller, Buyer agrees to deliver to Seller, within forty-five (45) days of the date of this Agreement, an executed designation of an individual qualified to accept service of process in the State of Florida, which designation shall be irrevocable during the period this Agreement unless Buyer effectively appoints a substitute local agent and notified Seller of such substituted designation. 38. Buyer's Certification. Buyer hereby certifies, under penalties of perjury, that the taxpayer's identification or social security number for Buyer as set forth on page 1 hereof is correct, and understands that failure to provide the correct taxpayer's identification or social security number, as required by law, may subject Buyer to civil ” or criminal penalties. 39. Incorporation; Definitions. The explanations, definitions, disclaimers and other provisions set forth in the Homeowners’ Documents are incorporated into this Agreement as if repeated at length here. When the words “this Agreement" are used, they shall include in their meaning ail modifications, riders and addenda to it signed by Buyer and Seller, The term “force majeure” as used in this Agreement, shall mean “Acts of God”, labor disputes (whether lawful or not), material or labor shortages, restrictions by any governmental or utility authority, civil riots, floods or other causes beyond a party's control. 40. Seller's Opinior/Discretion. Except as specifically provided to the contrary in this Agreement, wherever this Agreement requires or permits Seller's opinion or discretion (or words of similar import) to govem any matter, Seller will not be permitted, for purposes of this Agreement, to form an opinion which is entirely unreasonable, nor to exercise its discretion in an entirely unreasonable manner. However, if any such opinion or exercise of discretion is not entirely unreasonable, it will control for purposes of this Agreement. Without limiting the generality of the foregoing, wherever this Agreement specifically permits Seller to act in its sole discretion or to make a decision which may be unreasonable (or words of similar import), Seller's actions or decisions with respect to such matters will control for purposes of this Agreement even if unreasonable. - 44. Association. This Agreement is also Buyer's application for membership in the Association which membership shall automatically take effect at closing. At that time, Buyer agrees to accept the liabilities and obligations of membership. Buyer acknowledges receipt of and agrees to be bound by the Homeowners’ Documents, as amended and supplemented from time to time, Buyer acknowledges and agrees that title to the Dwelling Unit shall be subject to such documents. 42, Negotiation. Buyer acknowledges that (a) it has had ample opportunity to inspect other similar communities and the documents for them, (b) Seller has clearly disclosed to Buyer its right to cancel this Agreement for any reason whatsoever (including any dissatisfaction with the provisions of this Agreement or the Governing Documents) within three (3) days following the execution of this Agreement and the delivery of the Governing Documents and any amendments thereto, and (c) that although Seller's sales agents are not authorized to change the form of this Agreement, they have strict instructions from Seller to communicate any of Buyer's requests for changes to Seller's management, which has given Buyer the opportunity to discuss and negotiate such changes. In light of the foregoing, subject to Buyer's right to reconsider and cancel this Agreement within the three (8) day period described elsewhere in this Agreement, Buyer's decision te sign this Agreement now is totally free and voluntary and if Buyer falls to exercise its right to cancel as stated above, that will mean that it acknowledges and accepts all of the provisions of the Agreement and the Governing Documents as fair, reasonable, negotiated, discussed and explained to its satisfaction. Furthermore, notwithstanding the fact that the form of this Agreement has been draited, initially, by Seller, because this Agreement is a negotiated arm's length agreement, the principle of contract interpretation which would result in any ambiguity being construed against the draftsman shall not, and is nat intended, to apply. 43. Seller's Representations. Buyer acknowledges warrants, represents and agrees that this Agreement is being entered into by Buyer without reliance upon any representations concerning any potential for future profit, any rental income potential, tax advantages, depreciation or investment potential or any monetary or financial advantage. Buyer acknowledges and agrees that no such representations, including representations as to the ability or willingness of Seller or its affiliates to assist Buyer in renting or selling the Dwelling Unit, have been made by Smacview Contract 2 tARE AL ADE £ GUM rg f = Page 11 of 14 4 Unit, (b) the existence of any “view” from the Dweiling Unit or that any existing “view” will not be obstructed in the future, (c} traffic conditions in, near or around the Community, (d) disturbance from nearby properties, (e) disturbance from air or vehicular traffic, or (f) any future use of any adjacent properties. Buyer further warrants, represents and agrees the Dweiling Unit will not be used as an investment Property for resale or “filp”. The provisions of this Paragraph 42 shall survive the closing. 44, Disclosures. Under the laws of the State of Florida, Buyer is hereby advised as follows: a Radon. Radon is a naturally occurring radioactive gas that, when it has accumulated in a IF YOU HAVE ANY. CONCERNING VALUATION, CONTACT THE COUNTY DWELLING UNIT APPRAISER'S OFFICE FOR INFORMATION. c FLORIDA STATUTES CONTAINS IMPORTANT REQUIREMENTS YOU DEFECTS. YOU ARE NOT OBLIGATED TO ACCEPT ANY OFFER WHICH MAY BE MADE. THERE ARE STRICT DEADUNES AND PROCEDURES UNDER THIS FLORIDA LAW WHICH MUST. BE MET AND FOLLOWED TO PROTECT YOUR INTERESTS. 46, Flood Disclaimer. Buyer acknowledges and agrees that portions of the Community, including without limitation, the Parking areas may be located below the federal flood piain, and, accordingly, in the event Gf flooding, respect to the Residences, and specifically disclaims any and all representations or warranties as to the absence of mold in connection with the Residences, 48, Previous Occupancy. The Dwelling Unit has not been previously occupied, 49, Waiver of Jury Trial. Seller and Buyer agree that neither Seller, Buyer, nor any assignee, Successor, heir, or legal representative of Seller or Buyer (all of whom are hereinafter referred to as the “parties”) shail seek a Jury trial in any lawsuit, proceedings, counterclaim, or any other litigation procedure based upon or arising out of this Agreement, the Homeowners Documents, any rules or regulations of the Association, or any instrument evidencing or relating to any of the foregoing, or any actions, dealings or relationship between or among the parties, or any of them. None of the parties will seek to consolidate any such action, in which a Jury trial has been waived, with any other action in which a jury trial has not been 50. Disclaimers. No representations or warranties of any kind, express or implied, have been the Homeowners’ Documents delivered by Seller prior to the execution hereof by Buyer and, without limiting the generality of Paragraph 29 herein, the Seller hereby Specifically disclaims any liability or responsibility Smacview Contract ATIVE COMPLAINE : Page 12 of 14 COMI ee 8, bt YE 7? Buyer{s) Initials cm OF E45! = = PAGE 339 Tor the following: (a) any matters relating to the a igns, security and privacy of the Dwelling Units and other portions of the Community and the design, height and density of the surrounding properties; (b) the compliance with applicable law, the prevention of tortuous activities, the security, health, safety or welfare of any owner, occupant or user of any Portion of the Community, without limitation, Owners and their families, quests, invitees, agents, servants, contractors or subcontractors; (c) the physical condition, zoning, compliance with applicable law, merchantability, habitability, fitness for a particular Purpose of any portion of the Common Areas, other portions of the Community, including (without limitation) the sale, operation, level or cost of maintenance, taxes or regulation thereof; (d) bowing and/or deflection of materials, and cracking and settlement of improvements, which Buyer recognizes and agrees is typical in the type of improvements in the Community; (e) moids, mildew, toxins and fungi which, given the climate and humid conditions in South Florida, may exist and/or develop within the Dwelling Units, and/or other portions of the Community. Buyer acknowledges that certain maids, mildew, toxins and/or fungi may be, or if allowed to remain for a sufficient period may become, toxic and potentially pose a health Tisk; (f) noise, music, vibrations, odors, commotion and other unpleasant effects of nearby construction activity, and emanating from the development of the Community which may create disturbances impede the use of portions of the Community; (g) acts of God and uncontrollable events and, given the location of the Community, the exposure to the potential damages from flooding and from hurricanes, including (without limitation), damages from storm surges and wind-driven rain. Buyer acknowledges that portions of the Community are located may be below the federal flood plain, and, accordingly, in the event of flooding, any property therein is susceptible to water damage. Buyer, by accepting and acquiring title to the Dwelling Unit, and each other person having an interest in or lien upon, or making any use of, any portion of the Community (by virtue of accepting such interest or lien or making such uses), shall be bound by this paragraph, shall be deemed to have assumed the risks associated with each of the above matters and occurrences and shall be deemed to have automatically waived (to the maximum extent permitted by applicable law) any and all rights, claims, demands and causes of action against the Seller arising from or connected with any matter for which the liability of the aforementioned parties has been disclaimed in this Paragraph. As to such warranties which cannot be disclaimed, and to other claims, if any, which can be made as to the aforesaid matters, all incidental, special, punitive and consequential damages arising therefrom are hereby disclaimed. Buyer, by virtue of acceptance of title to the Unit shali be deemed to have automatically waived ail of the aforesaid disclaimed warranties and incidental and consequential damages. As used in this paragraph, references to Seller shail include within their meaning its members, partners, and its shareholders, directors, officers, board members, employees, agents, contractors, subcontractors, and its successors and assigns. 51. English Language. Buyer acknowledges that this Agreement was negotiated in the English language. 52. Gender. Certain references used in this Agreement contained terms masculine/feminine and were used for convenience and such references shall be deemed to apply in the masculine/feminine/neuter where the text of this Agreement requires. 53. Nearby Construction. Buyer understands and agrees that for some time in the future Buyer may be disturbed by the noise, commotion and other unpleasant effects of nearby construction activity and impeded in using portions of the Community by that activity. Buyer further understands and agrees that the various portions of the Community may be developed by various developers, and, accordingly, there is no assurance as to what, if anything, will be constructed within other parts of the Community. Because of the size of the planned development and the time it will take to develop it completely, great flexibility has been reserved as to what, if anything, will be construct. Except to the extent this Agreement specifically and explicitly provide otherwise, Seller and its affiliates will have no obligation (other than that imposed by governmental authorities) to build (or to assure in any manner construction of) any particutar buitdings or facilities or to build (or to assure in any manner construction of) what is built in any particular way and where and will it be constructed. . 54. Entire Agreement. This Agreement is the entire contract for sale and purchase af the Dwelling Unit and once it is signed, it can only be amended by a written instrument signed by both Buyer and Seller which Specificaily states that it is amending this Agreement. Any current or prior agreements, representations, understandings or oral statements of sales representatives or others, if not expressed in this Agreement, the Homeowners Documents or in brochures for Sonoma Bay, are void and have no effect. Buyer has not relied ‘on them. 55. Disclosure Summary. The terms and conditions of the Homeowners’ Documents are incorporated by reference into this Agreement. IF THE DISCLOSURE SUMMARY REQUIRED BY SECTION 720.401, FLORIDA STATUTES, HAS NOT BEEN PROVIDED TO THE PROSPECTIVE BUYER BEFORE EXECUTING THIS CONTRACT FOR SALE, THIS CONTRACT IS VOIDABLE BY BUYER BY DELIVERING TO SELLER OR SELLER'S AGENT WRITTEN NOTICE OF THE BUYER'S INTENTION TO CANCEL WITHIN 3 DAYS AFTER RECEIPT OF THE DISCLOSURE SUMMARY OR PRIOR TO CLOSING, WHICHEVER OCCURS FIRST. ANY PURPORTED WAIVER OF THIS VOIDABILITY RIGHT HAS NO EFFECT. BUYER'S RIGHT TO VOID THIS CONTRACT SHALL TERMINATE AT CLOSING. THE DISCLOSURE SUMMARY REQUIRED BY SECTION 720.401, FLORIDA STATUTES PROVIDES: DISCLOSURE SUMMARY (Pursuant to Section 720.401 of Florida Statutes) 1. AS A PURCHASER OF DWELLING UNIT IN THIS COMMUNITY, YOU WILL BE OBLIGATED TO Smacview Contract Page 1S of 14 STRATIVE COMPLAINT “ Buyer(s) Initials Zi 4 OPEL eS BE A MEMBER OF THE MARSH HARBOUR MAINTENANCE ASSOCIATION, INC.’ 2. THERE HAVE BEEN OR WILL BE RECORDED RESTRICTIVE COVENANTS GOVERNING THE USE AND OCCUPANCY OF PROPERTIES IN THIS COMMUNITY. 3. YOU WILL BE OBLIGATED TO PAY ASSESSMENTS TO THE ASSOCIATION. ASSESSMENTS MAY BE SUBJECT TO PERIODIC CHANGE. IF APPLICABLE, THE CURRENT AMOUNT IS $452.11 PER QUARTER. YOU WILL ALSO BE OBLIGATED TO PAY ANY SPECIAL ASSESSMENTS IMPOSED BY THE ASSOCIATION. SUCH SPECIAL ASSESSMENTS MAY BE SUBJECT TO CHANGE. IF APPLICABLE, THE CURRENT AMOUNT IS $ PER . 4. YOU MAY BE OBLIGATED TO PAY SPECIAL ASSESSMENTS TO THE RESPECTIVE MUNICIPALITY, COUNTY, OR SPECIAL DISTRICT. ALL ASSESSMENTS ARE SUBJECT TO PERIODIC CHANGE. 5. YOUR FAILURE TO PAY SPECIAL ASSESSMENTS OR ASSESSMENTS LEVIED BY A MANDATORY HOMEOWNERS’ ASSOCIATION COULD RESULT IN A LIEN ON YOUR DWELLING UNIT. 8. THERE IS NOT AN OBLIGATION TO PAY RENT OR LAND USE FEES FOR RECREATIONAL OR OTHER COMMONLY USED FACILITIES AS AN OBLIGATION OF MEMBERSHIP IN THE HOMEOWNERS’ ASSOCIATION. 7. THE RESTRICTIVE COVENANTS CAN BE AMENDED WITHOUT THE APPROVAL OF THE ASSOCIATION MEMBERSHIP, EXCEPT HOWEVER, PRIOR TO THE TERMINATION OF THE CLASS B CONTROL PERIOD (AS DEFINED IN THE RESTRICTIVE COVENANTS), NO AMENDMENT SHALL BE PERMITTED THAT CHANGES THE RIGHTS AND OBLIGATIONS OF THE DECLARANT (AS DEFINED IN THE RESTRICTIVE COVENANTS), UNLESS THE DECLARANT HAS FIRST CONSENTED THERETO IN WRITING. FURTHERMORE, BEFORE THE TERMINATION OF THE CLASS B CONTROL PERIOD DECLARANT MAY UNILATERALLY, AND WITHOUT THE JOINDER OF ANY OTHER PARTY, MAKE OTHER AMENDMENTS TO THE RESTRICTIVE COVENANTS AS ARE MORE PARTICULARLY SET FORTH THEREIN. 8. THE STATEMENTS CONTAINED IN THIS DISCLOSURE FORM ARE ONLY SUMMARY IN NATURE, AND, AS A PROSPECTIVE PURCHASER, YOU SHOULD REFER TO THE COVENANTS AND THE ASSOCIATION'S GOVERNING DOCUMENTS BEFORE PURCHASING A DWELLING UNIT. 9. THESE DOCUMENTS ARE OR WILL BE MATTERS OF PUBLIC RECORD, AND, WHEN RECORDED, CAN BE OBTAINED FROM THE RECORDER'S OFFICE IN BROWARD COUNTY, FLORIDA. Soohttigtotigs sents WE COMPLAINT (ee ALMINISTRA ‘Smacview Contract NSTRAT Page 14 of 14 4 RECEIVED To: Jonathan Platt MAY 2.6 2009 May 15, 2009 DIMISION OF REAL ESTATE Marsh Harbour Sonoma Bay 1120 Lucaya Drive 1951 Hibiscus Lane 2009 Nassau Drive 1960 Flamingo Place 1. Please furnish a list of all prior appraisal reports conducted by subject in Riviera Beach. I have been performing appraisals for 9.5 years and the primary areas I cover is Dade, Broward and Palm Beach counties. I typically average between 200 - 300 residential appraisals per year and of those approx. 40% were in Palm Beach county, Florida. 2. Who referred subject to Smacview. I was referred to Smacview by Maria Fronzaglia of Prime Lending Group and she can be reached at 954-461-0138. 3.Why did the subject use only Smacview flips as comparables and not go outside the development for any other comparables. To begin, I strongly object to the term “flips” as this does not appropriately describe the situation and implies that there was some type of illegal action with respect to these transactions. The selection of comparables was focused within the subject development as these were considered to best reflect the actions of buyers and sellers for units of newly constructed town homes within the immediate market area. Transactions within the development were also considered to best represent the characteristics of the development as compared to re-sales in older projects within the immediate area. 4. Did the sales office at Marsh Harbour provide subject with any data. The sales office provided entry into the units, site map of the development, floor plans for various unit types/styles and other data related to the development (i.e. condo fees, number of rentals, number of owner occupied units, number of units, sold, under contract, etc). 5. Did the sales staff at Marsh Harbour provide copies of contracts or HUD statements to subject. Yes, copies of partial contracts were provided by representatives of Smacview for information related to pending transactions. No copies of any HUD statements (I assume that this is a reference to a closing statement) were provided. This is due to the fact that contracts provided were for pending sales only. Closed sales were verified through public records (copies of deeds obtained from public records enclosed). 6. Did subject research any of the developer sales that he used as comps. As noted above, sale comparables were verified through public records (copies of the deeds for these transactions are included in the enclosed work files) 7, What was subjects justification for the increase in value for a same day sale. Based upon information available as of the effective date of the reports, ‘it is our understanding that the units in question were part of a bulk sale that occurred around June 2007 between the original developer Comerstone Group to an entity known as Smacview, Inc.. It was our understanding that the bulk transaction reflected a "staged take down" of units as they were resold to individual buyers at "retail" prices, as well as other future dates that were not disclosed. Research determined that the first sales from Smacview to the individual owners initially occurred in July 2007 and continued through the effective dates of the reports. Of significance is that Smacview, Inc. also sold numerous units to various individuals subsequent the effective dates of value for the reports in question. Therefore, the units as acquired by Smacview through a bulk purchase agreement reflected wholesale pricing and were then sold to buyers at a retail price. 8. Did the subject reference the name of the seller off the purchase contract without independently verifying the information. As previously noted, the transaction between Cornerstone and Smacview was not recorded or otherwise publicly disclosed. At the time the appraisals were prepared, it was my understanding that this transaction/transfer was not armslength but instead reflected some form of internal transfer between corporate divisions. We have come to understand subsequent to having completed the reports in question that the bulk transaction was in fact not only armslength, but, that the bulk transaction involved a total of approximately 50 units in each development, and that the Buyer Smacview, Inc ultimately returned/defaulted on 22 units in Marsh Harbour project and 15 units in Sonoma Bay in mid 2008. A recent review of public records indicated that Marsh Harbour Associates and Sonoma Bay (Comerstone), ultimately sold several units that were returned by Smacview to individual buyers at prices generally comparable to prices utilized in our appraisals as well as those prices obtained by Smacview. 9. Please provide the contracts and HUD statements for all 4 appraisal report properties. Copies of all contracts for the subject properties are included in the enclosed work file eres PAGE information. However, copies of HUD statements (again I assume the intent here is closing statements) were not available as all of these assignments were for purchases of newly constructed homes. A closing statement would not have existed since the properties had not closed, as of the effective date. ADWINISTRALVE COMPLAINT EXHIBIT #2 PAGE 2 0 iF EXHISIT [pe GE Se Appraisal Order Form LENDERI/CLIENT INFORMATION: Client Name: Panier Mortgage Client Address: 2000 Palm Beach Lakes Bivd #700 Client Phone Number: 561-723-4028 . Client Fax Number: Contact: Eric Panier : Email: Method of Appraisal Delivery: Z]Email (PDF), (]Hard Copy, Other. Method of Payment: [silt (Due upon receipt), CICAD (Collect at door) Loan Number. Client File Number. SUBJECT PROPERTY INFORMATION: Address: 1951 Hibiscus Lane Riviera Beach, F1 33404 Borrower's Name: Alvarado Roxx Contact Information: Name: Home Phone: t Cell Phone: Work Phone: : Property Type: [q Single Family, []Condo, (12-4units: #___, [New Construction, Hotter: Twnhse Gross Living Area: 1250 Sq.Ft. Lot Size: unknwn_ | SqFt. Condition of Subject: [Needs Work, []Average, [1Good, CJUpdated, OTotat Renovation, OCustom/Luxury Special Features: D)Pool, (Addition, D)Patio Room, CJin-Law unit, View, Clothes: PURPOSE OF APPRAISAL: | ORefinance, Purchase (Please provide copy of purchase agreement/Contract), Oo Other: Contract Price: $ 240,000 Sale/Financing Concessions: TYPE OF APPRAISAL/REPORT: 1] 1004 No Cost Approach [12055 No Cost Approach 01 1073 Condo 1004 W/ Cost Approach (1.2085 W/ Cost Approach ~ “11075 Condo Exterior-Only (7 1025 2-4 Units 0 1007 Rent Survey 0216 Operating Income Statement ADMINISTRATIVE COMPLAINT G. Upon receipt of this order form, | will contact you to confirm your appraisal req ie DGuSi, i oe: as 163 12 7scz 166 Property Address: 1951 Hibiscus lane.Unit#144. City: Riviera Beach. State:FI Country: Usa Zip Code: 33404 Home Telephone Home Fax: Offica Telaphone: Office Fax: Cellutar Phone(s): £-Mail Address: Social Security No(s): Name and address to which all of Buyer's notices are to be given (leave blank if same as above): Name: Street Address: City: State: Country: Zip Code: Home Telephone: Home Fax: Office Telephone: Office Fax: 1 Cellular Phone(s): E-Mail Address: : ee Purchase Price: The Purchase Price of the Dwelling Unit has been determined as follows: i | Basic Purchase Price $ 240,000 { Plus Extras/Options (if any) $ i {set forth in separate ! addendum) ! i Lot Premium Ey | TOTAL PURCHASE PRICE —_____240,000___$ The Total Purchase Price of the Dwelling Unit shail be paid as follows: i Payment Due Date Amount | Initial deposit % Upon execution hereof i og Balance (subject to adjustments, At Closing i $ extras and prorations) i In addition to the Purchase Price shown above, Buyer also agrees to pay the seler’s Reimbursement Charge, all losing costs and other sums required to be paid by Buyer under this Agreement. At the present time, the costs for which dollar amounts can be computed are: i a. 1.50% Developer Reimbursement See paragraph 13 on Page 6. | b. {nitial Capital Contribution to Homeowners Association . See paragraph 13 on Page 6. ‘ These charges are subject !o adjustment as provided in paragraph 13 of this Agreement, andare explained in more detail in that paragraph, as are other closing costs which cannot be computed at this time. : : : ss; SELLER: Page 1 of 14 THE BUYER OF A ONE-FAMILY OR TWO-FAMILY RESIDENTIAL DWELLING UNIT HAS THE RIGHT TO HAVE ALL DEPOSIT FUNDS (UP TO ...... PERCENT OF THE PURCHASE PRICE) DEPOSITED iN AN ESCROW ACCOUNT. THIS RIGHT MAY BE WAIVED, IN WRITING, BY THE BUYER. {Buyer to initial the paragraph below) BY BUYER INITIALING ON THE LINE PROVIDED BELOW, BUYER WAIVES THE RIGHT TO HAVE THE DEPOSITS PLACED IN ESCROW AS DESCRIBED ABOVE: Buyer(s) Initials ——____ ________ BUYER HEREBY ELECTS TO WAIVE ITS RIGHT TO HAVE DEPOSIT FUNDS (UP TO 10% OF THE PURCHASE PRICE) DEPOSITED IN AN ESCROW ACCOUNT, AND ACKNOWLEDGES AND AGREES THAT NO PORTION OF DEPOSITED FUNDS SHALL BE DEPOSIT! ED IN AN ESCROW ACCOUNT. In the event Buyer does not waive the above escrow requirement, pursuant to paragraph 2 of this Agreement, Buyer may be charged at closing any interest which Seller Pays to borrow money, in an amount equal to the funds held in escrow (for construction Purposes only), for a period not to exceed 12 months, but the Buyer will be credited for any interest actually accrued on the escrow account (only if escrowed funds are placed at interest), or the Buyer may be charged at closing an amaunt equal to the premium for the applicable portion of the bond securing such portion of his or her deposit (the “Interest Charge”). 1 Buyer agrees to buy and Seller agrees to sell the proposed residence, identified at the top of page 1 hereof (the "Dwelling Unit”), on the tarms and conditions contained in this Agreement in the proposed residential community known as Sonoma Bay (the "Community’), Buyer acknowledges that the Dwelling Unit, as part of the Community, is subject to, and Buyer acknowledgas receipt of the "Homeowners’ Documents,” which include, among others, the Deciaration of Covenants, Restrictions, and Reciprocal Easements for Sonoma Bay (the “ Covenants"), Articles of incorporation for Sonoma Bay Community Homeowners Association, Inc., By-Laws for Sonoma Bay Community Homeowners Association, Inc., and an Estimated Operating Budget. THE HOMEOWNERS’ DOCUMENTS CONTAIN IMPORTANT PROVISIONS CONCERNING AND RESTRICTING THE USE OF THE DWELLING UNIT, AND CREATE AND IMPOSE RIGHTS, DUTIES AND OBLIGATIONS ON THE BUYER, all of which may be amended from time to time as provided therein. Buyer hereby acknowledges that he hag personally reviewed the Homeowners Documents and found them acceptable and suitable for’ Buyer's purposes, that Buyer has relied upon his own judgment in making such determinations, and there were no warranties, representations, guarantees or promises, expressed or implied, with respect therato by Seller or any of Seller's agents, employees or representatives or any independent contractor except those which have been specifically set forth in this Agreement. 2. Deposit. Deposits may be made by personal check (subject to clearance) or in cash. The balance due at clasing must be paid by cashier's check or wire transfer of federal funds. All payments must be made in U.S. funds and all checks must be payable on a bank located in Miami-Dade County, Broward County or Palm Beach County. Seller is not obligated to accept any deposit which Buyer fails to pay on time, and if Seller agrees to accept such deposit on a later date, Buyer will pay a late funding charge equal to interest on such deposit, at the then applicable highest lawful rate from the date due until the date of receipt and final clearance by Seller. At closing, all deposits not previously disbursed to Seller (and any interest eamed thereon, if any) will be released to Seller and Buyer will be given a credit against the Total Purchase Price for all deposits, excluding any interest earned thereon. If Buyer defaults, Sailer is entitled to retain all deposits (and any interest earned thereon, if any). if Buyer properly terminates this Agreement in the manner allowed in this Agreement or by applicable law, ail deposits (including any interest earned thereon, if any) will be retumed to Buyer within twenty (20) days after the effective date of Buyer's cancellation, or the date Buyer's deposit chack(s) irrevocably clears, if later. Reference in the balance of this Agreement to “Buyer's deposits" shall not include any interest actually eamed thereon. Seller may select the type of account in which to invest the deposits in its sole and absolute discretion, and nothing in this Agreement shall require Seller or the Escrow Agent to place the deposits in an interest bearing account. Except as permitted below, ail of Buyer's deposits will be held in escrow by COUNTYLINE LAND TITLE GROUP ("Escrow Agent”), with offices at 603 Hollywood Bivd, Hollywood, Fl, 33024, in accordance with the escrow agreement entered into between Seller and Escrow Agent. The Escrow Agreement is incorporated into this Agreement as if repeated at length herein and Buyer agrees that the deposits may be held in any depository which meets the requirements of applicable law, including, without limitation, a financial institution chartered and located outside the State of Florida. if Buyer so requests, Buyer may get a receipt for Buyer's deposits from the Escrow Agent. Seller can change @scrow agents (as long as the new escrow agentis authorized to be an escrow agent under applicable law), in which case Buyer's deposits may be transferred to the new escrow agent at Seller's direction. In the event that Buyer does not waive its right to have deposits placed in an escrow account, Seller shail ~ place the portion of the deposited funds up to 10% of the total Purchase Price in an escrow account with the Escrow Agent, and the release of the deposited funds shall be in accordance with §501.1375, Florida Statutes. When money has been placed in an interest-bearing escrow account pursuant to this paragraph, Seller shall be entitled to all interest accrued on the account, which shall be payable at closing. if Seller desires to use escrowed funds for building purposes, after notification to the Buyer, Seller shall acquire a surety bond issued by a company licensed to do business in this stata, if such a bond is readily available in the open market, payable to Buyer in the amount of the escrow deposit; and the funds in the escrow deposit shall thereafter be released to Seller for construction purposes only or as otherwise permitted by law. In the case where na surety bond is available, Sellar may borrow money in an amount equal to the funds held in escrow for construction purposes only, in which case any interest which Seller pays ‘Smacview Contract Page 2 of 14 HAbivO & on such a loan for a period not to exceed 12 months shall be paid by Buyer at the time of closing, but the Buyer shail be credited for any interest accrued on the escrow account. In lieu of, and as an alternative to, such requirements, a blanket or master surety bond issued by a company licensed to do business in the state of Florida may be acquired by Seller, in an amount equal to or greater than the total amount of the initial 10% escrow deposits withdrawn by Seller pursuant to this paragraph. Buyer shall be debited at closing in an amount equal to the premium for the applicable portion of the bond securing his or her deposit. The master surety bond amount and the pro rata share of bond premium debited against the Buyer may be based on a reasonable Projection of annual escrowed deposit amounts which will be withdrawn pursuant to this paragraph. Bond rates charged under this paragraph shall be subject to the provisions of part | of chapter 627 of the Florida Insurance Code. Notwithstanding anything to the contrary in this Agreement, all of Buyer's deposits in excess of ten percent (10%) of the Purchase Price may be used by Seller tor construction of the Dwelling Unit or as atherwise permitted by law. In the event that Buyer waives its tight to have the deposited funds (up to 10% of the Purchase Price) deposited in an escrow account hereunder, all the deposited funds shall be paid by Buyer directly to Seller which shail be used by Seller in connection with the construction of the Dwelling Unit and/or as otherwise permitted by law. In the event that closing occurs, Buyer shall then have no right to place a claim on any escrowed funds for breach of this Agreement. . 3. How Buyer Pays. Buyer understands and agrees that he will be obligated to pay “all cash" at closing. For purposes of this Agreement, “all cash" shall mean either a cashier's check drawn on and payable through a financial institution located in the continental United States or immediately available wired federal funds in U.S, Dollars. This Agreement and Buyer's obligations undar this Agreement to purchase the Dwelling Unit will not depend on whether or not Buyer qualified for or obtains a mortgage from any lender. Buyer will be solely responsible for making his own financial arrangements. Seller agrees, however, to cooperate with any lender Buyer chooses and to Coordinate closing with such lender, if, but only if, such lender meets the Seller's closing schedule and pays Sellar the Proceeds of its mortgage at closing. in the event that lender does not pay Seller these proceeds at closing, Buyer will not be allowed to take possession of the Dwelling Unit untit Seller actually receives alll the funds and such funds have cleared. Although Seller does nat have to do so, if Seller agrees to delay closing until Buyer's lender is ready, or to wait for funding from Buyer's lender until after closing, or to accept a portion of the sums due at closing in the form af @ personal check, Buyer agrees to pay Seller a late funding charge equal to interest, at the then highest applicable lawful rate, on all funds due Seller which have not then been paid to Seller (and, with regard to personal checks and cashier's checks, which have not then cleared) from the date Seller originally scheduled closing to the date of actual Payment (and with regard to personal checks, to the date of final clearance). This late funding charge may be estimated and charged by Seiler at closing. Seller's estimate will be adjusted after closing based on the actual funding and clearance dates upon either Seller’s or Buyer's written Tequest. Without limiting the generality of Paragraph 33 of this Agreement, the foregoing sentenca will survive (continue to be effective after) closing. 4, Seller's Financing, Seller may borrow money from lenders to acquire or finance the Community and ta construct the Dwelling Unit. Buyer agrees that any lender advancing funds for Seller's use in connection with the Dwelling Unit will have a prior mortgage on the Owelling Unit until closing. At that time, Seller may use all proceeds of Buyer's purchase which are necessary to release the Dwelling Unit from the then applicable mortgages for the Purpose of obtaining those releases. Neither this Agreement, nor Buyer's payment of his deposits, will give Buyer any lien or claim against the Dwelling Unit. Without limiting the generality of the foregoing, Buyer's rights under this Agreement will automatically and unconditionally be subordinate to all mortgages (and all modifications made to those mortgages) affecting the Owelling Unit even if those mortgages (or modifications) are made or recorded after the date of this Agreement. Notwithstanding the foregoing, at Seller's request, Buyer agrees to execute any and all documents requested by Seller's lender to further evidence such subordination. 5. jn tf i The Dwelling Unit will be constructed in substantial accordance (ia Seller's opinion) with the plans and specifications given to Buyer upon execution of this Agreement or held in Seller's office, as such plans and specifications are amended from time to time. Seller may make any changes in the plans -» and specifications that it deems appropriate at any time, to accommodate its in the field construction needs (as more fully discussed in this paragraph 5 and in response to recommendations or requirements of local, state or federal governmental or quasi-govermental agencies or applicable utility and/or insurance providers, and Buyer agrees that any changes made in accordance with the foregoing shail not be deemed material in a manner which is adverse to the offering of the Dwelling Unit. Such plans and specifications, as they are so amended, are referred to in this Agreement as “Seller's Plans and Specifications". Without limiting Seller's general right to make changes, Buyer Specifically agrees that changes in the dimensions of rooms and balconies, in the lacation of windows, doors, walls, Partitions, utility (including, but not limited to, electrical, cable and telephone) lead-ins and outlets, air-conditioning equipment, ducts and components, lighting fixtures and electric panel boxes, and in the genera! layout of the Dwelling Unit, may be made by Seller in its discretion. In furtherance of the understanding and agreement stated above, Buyer acknowledges and agrees that it is a widely observed construction industry practice for pre-construction plans and specifications for any building to be changed and adjusted from time to time in order fo accommodate on-gaing, “in the field" construction needs. These changes and adjustments are essential in order to permit all components of the building to be integrated into a well-functioning and aesthetically pleasing product in an expeditious manner. Because of the foregoing, Buyer acknowledges and agrees that it is to his benefit to allow Seller the flexibility to make such changes in the Dwelling Unit. Buyer further acknowledges and agrees that (i) the plans and specifications for the floor plan of the model selected by Buyer that may be on file with applicable governmental authorities may not, initially, be identical in detail to Seller's Plans and Specifications, and (ji) because of the day-to-day natura of the changes described in this Paragraph 5, the plans and specifications on file with applicable governmental authorities may not include some or any of these changes (there being no legal requirement to file ail changes with such authorities). As a result of the foregoing, Buyer and Seller both acknowledge and agree that the floor and/or building plan of the madel selected by Buyer may not be constructed in accordance with the plans and specifications on file with applicable governmental authorities. Without limiting the generality of paragraph 29 below, Seller disclaims and Buyer waives any and all express or implied warranties that construction will be accomplished in compliance with such plans and specifications. Seller has not given and Buyer has not relied on or bargained for any such warranties. Without limiting the generality of the foregoing, because of Seller's need to coordinate the appearance and design of the Community, in connection with the nature and layout of the land on which construction is to take. place : ers Smacview Contract Page 3 of 14 and of the street, common areas and other features of the Community, Buyer understands and agrees: The Dwelling Unit may be constructed as a reverse ("mirror image’) of, or otherwise in a manner different from, that illustrated in the floor and building plan of the applicable model and building {as shown in the condeminium documents or in any. illustrations of the model and building); and may be ‘sited" in a position different from that of the applicable mode! and floor and building plan (or any such illustrations). Buyer agrees to accept the Dwalling Unit as "sited" by Seller and as constructed according to a reverse floor and/or building plan. Buyer further understands and agrees that there are various methods for calculating the square footage and that the measurements of the Unit and facilities contained in sales brochures are based upon architectural measurements. Accordingly, the size of the Unit and these facilities may vary by more than a nominal amount. This paragraph does not limit the generality of Seiler’s rights, set out elsewhere in this Agreement, to make other changes in the Dwelling Unit, the Community and the respective governing documents. closi The agreements and waivers of Buyer contained in this paragraph will survive (continue to be effective after) losing. : 6, Certain items and Materials. The Total Purchase Price of the Dwelling Unit includes only those items listed on the Seller's Plans and Specifications and unless itemized thereon, all other itams are NOT included with the Dwelling Unit. Buyer understands and agrees that certain other items such as the following, which may be seen in models (if any) or in illustrations, are not included with the sale of the Dwelling Unit: wall coverings, paint or Paint colors (other than off-white), accent light fixtures, wall omaments, drapes, blinds, furmiture, knickknacks and other decorator accessories, lamps, mirrors, graphics, pictures, plants, wall-hung shelves, wet bars, intercoms, kitchen accessories, linens, window shades, security systems, certain built-in fotures, carpets or other floor coverings and colors, wood trim, other upgraded items, planters, screening, landscaping and any other items of this nature which may be added or deleted by Seller from time to time. This list of items (which is not all-inclusive) is provided as an illustration of the type of items built-in or placed upon the madels (if any) or shown in illustrations strictly forthe Purpose of decoration and example only. Items such as these will not be included in the Dwelling Unit unless specifically provided for in a published list of standard items (if any) or in an Addendurn to this Agreement signed by both Buyer and Seller. In the event that Seller does provide any of these or other items, however, Buyer agrees to accept them, although not requested by Buyer, as long as Buyer is not required to pay for such items. There is no obligation for Seller to provide models, but if so provided, the foregoing disclaimers will apply. Buyer further understands and agrees that certain items which may be included with the Dwelling Unit or shown in models, such as tile, cabinets, wood, stain, grout, wall and ceiling textures, cultured marble, mica and carpeting, are subject to size and color variations, grain and quality variations, and may vary in accordance with price, availability and changes by manufacturer from those shown in the models or in illustrations or included in Seller's Plans and Specifications or in the published list of standard items (if any). If circumstances arise which, in Seller's opinion, warrant changes of suppliers, manufacturers, brand names or items, Seller may substitute equipment, material, appliances, etc., with items, which in Seller's opinion are of equal or better quality. Buyer also understands and acknowiedges that Seller has the right to substitute or change materials and/or stain colors utilized in wood decor (if any). Buyer recognizes that certain colors as shown in displays or in the models, inctuding, but not limited to, roof, carpeting and wood stain, will weather and fade and may not be duplicated precisely. It Seller allows Buyer to select certain colors and/or materials in the Dwelling Unit (which Seller is not obligated to do), Buyer understands and agrees that Buyer must submit his selections to Seller in writing within fourteen (14) days after the date the list of selections (if any) is made available to Buyer. If these selections (if any) are not delivered to Seiler in writing within the time frame stated above, then it is agreed and understood that the choices will be made by Seller in its sole discretion. 7. Insulation: Energy Efficiency. Seller has advised Buyer, as required by the rules of the Federal Trade Commission, that it currently intends to install in connection with the Dwelling Unit, the following insulation: 8. Fiberglass blanket and/or Polyurethane Batt Insulation and/or Demising AL-Foil Wails Batt Insulation and/or Exterior Walls AL-Foil This R-value information is based solely on the information given by the appropriate manufacturers and Buyer agrees that Seller is not responsible for the manufacturers’ errors. All information is subject to Seller's general right, under paragraphs 5, 6 and 26 to make changes in Seller's Plans and Specifications, and to applicable limitations of Seller's liability to Buyer. Buyer also acknowledges receipt of the information brochure prepared by the Department of Community Affairs regarding energy efficiency ratings. All insulation and eneray efficiency rating information is subject to Seller's tights, under this Agreement, to make changes in Seller’s Plans and Specifications, and to limit Seller's liability to Buyer. 9. Completion Date. The Estimated Completion Date is Seller's best, present estimate and is neither a __. fepresentation nor a warranty that construction of the Dwelling Unit will be completed by that date. Notwithstanding *=the foregoing, in compliance with the requirements for the “improved Lot” examption under Section 171 '0-5(b) of the Interstate Land Sales Full Disclosure Act (15 U.S.C. 1701, et seq.), Seller is unconditionally obligated to complete and deliver the Dwelling Unit to Buyer within not more than twenty-four (24) months from the date of execution of this Purchase Agreement by Buyer; subject only to delays which would support a defense based upon impossibility of performance under applicable law. For purposes of this paragraph, the Dwelling Unit shall not be deemed to have been completed unless the Dwelling Unit is physically habitable and useable for the purpose for which the Dwelling Unit was purchased and has ail necessary and customary utilities extended to it and available for service to be initiated by Buyer. If, because of such delays, the Seller is unable to complete and deliver the Dwelling Unit within twenty-four (24) months from the date of execution of this Agreement by Buyer, then such time period shall be Smacview Contract acc] JG al 2 es sa, Page 4 of 14 extended for a term equal to the total period(s) attributable to the delays. Seller shal! have the right, in Seller's sole and absolute discretion, to cancel this Agreement and to cause Buyer's deposits to be refunded in the event that Seller does nat enter into binding contracts to sell at least seventy-five (75%) of the Dwelling Units in the Community. Seller must, howaver, notify Buyer of any such termination election within six (6) months from the date on which the first purchaser of a Dwelling Unit in the Community executes a binding purchase agreement for such dwelling unit; otherwise Seller will be required to construct the Dwelling Unit and otherwise proceed to perform its obligations under this Agreement. This paragraph shail not delay the effectiveness of this Agreement which shail be immediate, but, rather, shall be deemed a “condition subsequent" to this Agreement. In the event of Seller's election to tarminate this Agreement pursuant to this paragraph, upon such termination and the return of Buyer's deposits, Seller and Buyer will be fully relieved and released from all obligations and liabilities under and in connection with this Agreement. Seller agrees to use reasonable efforts to meet the foregoing pre-sale requirement. Notwithstanding anything to the contrary in this paragraph, or in this Agreement, itis the intention of the parties that this sale qualify for the “knproved Lots" exemption under 15 U.S.C. Section 1702(a)(2) and that nothing contained in this Agreement shail be construed or shall operate in a manner inconsistent with the Seller's contractual obligation to complete the Dwelling Unit within the time required for compliance with the foregoing exemption. 10. Completion of Dwelling Unit. Seller shall have complete discretion in finishing details, landscaping, amenities and beautification of the Community, and Seller may exercise such discretion without impediment. Renderings contained in brochures or sales material shall not be construed as Tepresentations by Seller. Subject to Seller's objigation herein, the fact that construction in areas surrounding the Dwelling Unit may not be completed, or that landscaping or sod may not be compieted, shail not constitute a valid reason for Buyer's failure to close this transaction. it. Inspection Prior to Closing: Non-interference with Work. Buyer will be given an opportunity prior to closing, on the date and at the time scheduled by Seller, to inspect the Dwelling Unit with Seller's representative. At that time, Buyer will sign an inspection statement listing any defects in workmanship or materials (only within the boundaries of the Dwelling Unit, itself), which Buyer discovers. If any item listed is actually defective in workmanship or materials in Seller's opinion (keeping in mind the construction standards applicable in Broward County, Florida for similar Dwelling Units), Seller will be obligated to correct those defects at its cost within a reasonable period of time after closing, but Seller's obligation to correct will not be grounds for deferring the closing, nor for imposing any Condition on closing. No escrow or holdback of closing funds will be permitted. if Buyer fails to take advantage ot his right to @ pre-clasing inspection on the date and time scheduled, Seller will not be obligated to reschedule an inspection prior to ar after closing. Buyer acknowledges that all matters pertaining to the initial construction of the Dwelling Unit will be handled by Seller and Seller's representatives. Buyer may not order any work on the Dwelling Unit, other than prepaid options or extras that Seiler agrees in writing to provide, until after closing. Buyer recognizes that Seller is not obligated to agree to provide extras or options. BUYER REALIZES AND ACKNOWLEDGES THAT ENTRY UPON THE COMMUNITY OR THE DWELLING UNIT DURING CONSTRUCTION CAN BE DANGEROUS AND THAT HAZARDS MAY EXIST WHICH ARE NOT READILY OBSERVABLE. TO PROTECT SELLER AGAINST LIABILITY WITH REGARD TO PERSONAL INJURIES, DEATH AND DWELLING UNIT DAMAGE, AND TO AVOID INTERFERENCE WITH THE SELLER'S’ EMPLOYEES, CONTRACTORS, SUBCONTRACTORS, LABORERS AND MATERIALMEN, BUYER AGREES NOT TO INTERFERE WITH CONSTRUCTION AND BUYER WILL STAY OFF THE JOB SITE. ANY SUCH INTERFERENCE OR ENTRY SHALL BE A DEFAULT UNDER THIS AGREEMENT AND SELLER WILL NOT BE LIABLE FOR ANY INJURY RESULTING FROM BUYER'S BREACH OF THIS PROVISION. NO PERSONAL INSPECTIONS (OTHER THAN THE ONE PRE-CLOSING INSPECTION) WILL BE PERMITTED. BUYER'S FAILURE TO ABIDE BY THE TERMS OF THIS AGREEMENT AND TO NEVERTHELESS ENTER THE DWELLING UNIT SHALL NOT ONLY BE A DEFAULT HEREUNDER, BUT SHALL ALSO BE DONE SOLELY AT BUYER'S RISK, BUYER HEREBY WAIVES ANY AND ALL CLAIMS AGAINST SELLER FOR ANY INJURY OR LOSS TO PERSON OR DWELLING UNIT ARISING OUT OF OR IN CONNECTION WITH SUCH ENTRY, AND BUYER SHALL DEFEND AND HOLD SELLER HARMLESS FROM AND AGAINST ANY INJURY, LOSS, DAMAGE OR EXPENSE TO PERSONS OR DWELLING UNIT ARISING OUT OF OR IN CONNECTION WITH BUYER'S ENTRY (OR ENTRY BY ANY OTHER PERSON ACCOMPANYING BUYER OF AT BUYER'S DIRECTION). Buyer can examine Seller's Plans and Specifications at Seller's business offica, during regular business hours by making an appointment to do so in advance. 12, Closing Date. Buyer understands that Seller has the right to schedule the date, time and place for Closing, provided however, that the closing s hall occur within the time Period required in paragraph 8 of this Agreement. Before Seller can require Buyer to close, however, two things must be done: (a) Seller must record the Covenants in the Broward County public records; and (b) Seller must obtain a temporary or final certificate of use and Occupancy or a certificate of completion, or its equivalent, for or covering the Dwelling Unit from the proper governmental agency (the official approval needed before a Dwelling Unit may be lived in), but, subject and subordinate to the provisions of paragraphs 8 and 34 of this Agreement (without limiting the generality of those provisions by this specific reference). The Common Areas and Limited Common Areas (as defined in the Covenants) and other portions of the Community need not then have certificates of use and occupancy or completion, nor be fully completed. =" Buyer will be given at least tan (10) days’ notice of the date, time and place of closing except in the event that Buyer's lender, if any, requires closing to be held on less than ten (10) days' notice, in which event, Buyer shall close upon demand of his lender. Seller is authorized to postpone the closing for any reason and Buyer will close.on the new date, time and place specified in a notice of postponement (as long as at least 3 days' notice of the new date, time and place js given). A change of time or place of closing only (one not involving a change of date) will not require any additional notice period. Any formal notice of closing, postponement or rescheduling may be given orally, by telephone, telegraph, telex, telecopy, mail or other reasonable means of communication at Seller's option. Alt of these notices will be sent or directed to the address, or given by use of the information specified on page 1 of this Agreement, unless Seller has received written notice from Buyer of any change in Buyer's contact information prior to the date the notice is given. These notices will be effective on the date given or mailed (as appropriate). An affidavit Of one of Seller's employees or agents stating that this notice was given or mailed will be deamed conclusive. After the notice is given or mailed, and if requested by Buyer, Seller or its agents will sand a written canfirmation of the closing, together with other pertinent information and instructions. This written confirmation Smacview Contract Page S of 14 given Merely as a courtesy and is not the formal notice to close. Accordingly, it does not need to be received by any Particular date prior to closing. Buyer agrees, however, to follow ail instructions given in any such notice and written contirmation. if Buyer fails to receive any of these notices or the confirmation because Buyer failed to advise Seller of any change of adcress or phone, telecopy or telex number, because Buyer has failed to pick up a {etter when he has been advised of an attempted delivery or because of any other reason, Buyer will not be relieved of his obligation to Close on the scheduled date unless Seller agrees in writing to postpone the scheduled date. If Seller agrees in writing to reschedule closing at Buyer's request, or if Buyer is a corporation and Buyer fails to produce the necessary corporate papers Seller or Buyer's lender or mortgage broker (if any) requests and, as a result, closing is delayed, or if closing is delayed for any other reason {except for a delay desired, requested or caused by Seller}, Buyer agrees to pay at closing a late funding charge equal to interest at the highest rate allowed by applicable law on the Total Purchase Price calculated on a daily basis from the date that the closing was originally scheduled to the actual date of closing (or clearance of funds). Additional late funding charges also may be imposed as stated in paragraphs 2 and 3 of this Agreement. Ail prorations will be made as of the originally scheduled closing date. Buyer understands that Seller is not required to reschedule or permit a delay in closing, and that Seller may treat Buyer as being in defauit if it fails to close when scheduled. 13. Closing. The term ‘closing’ refers to the time when Seller delivers the deed to the Owelling Unit to Buyer and cwnership changes hands. Buyer's ownership is referred to as "title". At closing Buyer shall pay ail cash and execute and deliver ail instruments required to close this transaction. Saller promises that the title Buyer will receive at closing will be good, marketable and insurable title (subject to the permitted exceptions listed or referred to below). Buyer will receive two (2) documents at closing which Buyer agrees to accept as proof that his title is as represented above: a. A.written commitment from a title insurance company licensed in Florida agreeing to issue a policy insuring title {American Land Title Association Owners Policy, Standard Form B) or the policy itself. This commitment (or policy) will fist any exceptions to title. Permitted Exceptions {exceptions which Buyer agrees to take title subject fo) ara: (i) Liability for all taxes affecting the Dweiling Unit starting the year Buyer receives title and continuing thereafter; (ii) Standard exceptions for waterfront property and artificially filled-in property which was once within navigable waters and other standard exceptions for similar property; (iii) All laws, and alll restrictions, covenants, conditions, limitations, agreements, reservations and easements recorded in the public records of Broward County, Florida, including, without limitation, zoning restrictions, property use limitations and obligations, easements (rights-of-way) and agreements relating to telephone lines, water and sewer lines and other utilities; {iv} The Declaration of Covenants, Restrictions and Easements for Sonoma Bay and all exhibits thereto (the “Governing Documents”), recorded in the Public Records of Broward County, Florida, and the restrictions, covenants, conditions, easements, terms and other Provisions imposed by the decuments contained or referred to in the Homeowners’ Documents {and any other documents which Seller, in its sole discretion, believes to be necessary or appropriate) which are recorded, now or at any time after the date of this Agreement, in the public records of Broward County, Florida; (v) Pending governmental liens for public improvements as of closing and installments for assessments for certified governmental liens which are not due and payable as of closing; provided, however, that to the extent that any such certified liens are payable in installments, Seller shail only be tesponsibte for those installments due prior to closing, and Buyer hereby assumes all installments coming due after closing; (vi) Any mortgage executed by Buyer which encumbers the Dwelling Unit; (vil) Any matters not listed above as long as title insurance is given for these matters. (vili) All standard printed exceptions contained in an ALTA Owner's title insurance policy issued in Broward County, Florida, other than taxes and assessments for the year of closing which are not then due and Payable; and (ix) any matters not listed above as long as title insurance coverage is given for these matters. Buyer understands, however, that no limitation on Buyer's title prohibits construction of the Dwelling Unit, or the use of it as a residence, subject to the Homeowners’ Documents including, but not limited to, the Covenants. if at least thirty (30) days prior to closing, Buyer objects to the title company Seller has selected and if Buyer is obtaining financing with the assistance of a federally related mortgage loan, Seller will instead give Buyer a credit for the promulgated rate established by the Florida Insurance Commissioner far such title commitment (taking into account any available re-issue credits). In any event, Seller shall not be required to deliver an abstract of title. b. A special warranty deed. At closing, Seller promises to give Buyer a special warranty deed to the Dwelling Unit, subject to the permitted exceptions listed above. Buyer will also receive the following documents at closing: 1) a Bill of Sale for any appliances included in the Dwelling Unit, 2) Seller's form of Owner's (“no lien") Affidavit, 3) FIRPTA (non-foreign) affidavit, and 4) Acknowledgment, Receipt and Compliance Agreement prepared by Seller's counsel. When Buyer receives the special warranty deed at closing, Buyer will sign all papers that Seller and or its counsel deems necessary or appropriate. Title, for all purposes, shall be deemed good, marketable and insurable if Seller is able to deliver an owners title insurance policy for the Dwelling Unit subject only to the permitted exceptions set forth herein. If Seller cannot Provide the quality of title described above, Seller will have a reasonable Period of time (at least sixty (60) days) to Correct any defects in title, but Seller is not obligated to do so. If Seller cannot or elects not to correct the title defects, Buyer will have two options: (a) Buyer can accept title in the condition Seller offers it without any reduction in the Total Purchase Price, or (b) Buyer or Seller can cancel this Agreement and Buyer will receive a full refund of his ~ deposits, Seller will be relieved of all obligations under this Agreement when Seller refunds the deposits to Buyer. At the same time Buyer receives the special warranty deed, Buyer agrees to pay the balance of the Total Purchase Price and any additional amounts awed under this Agreement. Until all sums have been received and cleared, Seller will be entitled to a vendor's fien on the Owelling Unit (which Buyer will grant to Seller in writing at closing at Seiler's request). 14, Additional Expenses. Buyer understands that, in addition to the Total Purchase Price for the Dwelling Unit, Buyer must pay certain additional expenses, fees and costs when title is delivered to Buyer at closing. These include: Smacview Contract Page 6 of 14. COMPLAINT, , Buyer(s} initials BAST | 3 PAG a. A “Developer Reimbursement Charge” equal to one and one half percent (1.50%) of the Total Purchase Price (and of any charges for options or extras now or hereafter contracted for which are not included in the Purchase Price). This charge will be used to pay for the following closing costs: (!) the costs of officially recording the deed (currently, recording fees are $10.00 for the first page of an instrument and $8.50 for each additional page); (ji) for documentary stamp taxes (presently, documentary stamp taxes are $.70 for each $100.00 of consideration); (iii) for the prernium on the owner's title insurance Policy, at the minimum promuigated risk rates Promulgated by the Florida Insurance Commissioner (taking into account applicable reissue rates and new home credits, if any), whether obtained from Developer's closing agent, or elsewhere; and (iv) to pay or to reimburse Sellar for various out-of-pocket, administrative and other internal costs and expenses incurred in connection with development and construction of the Community, and the sale of the Units, including Seller's attorneys’ fees and various impact and permit fees incurred by Seller other than those expenses referred to in subparagraph (e) below. In the event of increases in either the Tecording fees imposed by the County, the documentary stamp tax rates or the minimum tisk title insurance premiums, subsequent to the date of this Agreement, or in the event of the imposition of any surcharge or any new govemmental tax or Charge on deeds or conveyances, Buyer further agrees to pay all such increases, surcharges or new taxes or charges. Buyer acknowledges and agrees that the ‘Developer Reimbursement Charge’ is not for payment or reimbursement of closing costs or settlement services (other than to the extent expressly provided above). The foregoing one and one half Percent (1.50%) “Developer Reimbursement Charge” is based on the assumption that documentary stamp taxes on the special warranty deed will be, at closing, at the rate of $.70 for each $100.00 of Purchase Price, and that the cast of title insurance will be based, at closing, on the minimum rates promulgated by the Florida Insurance Commissioner as of January 1, 1999. in the event of changes in either or both of the foregoing, or any new governmental tax or charge on deeds or conveyances, appropriate additional charges (in the case of increases) or credits (in the case of decreases) will be paid by or credited to Buyer at closing. b. Loan fees, closing costs, ascrows, appraisal fess, credit report fees, lender's title insurance premiums, prepayments and all other expenses charged by any lender or mortgage broker (if any) giving Buyer a mortgage, if applicable. c. The Sonoma Bay Community Homeowners Association, inc. (the “Association”) assessments/charges against the Unit for common expenses, prorated from the date of closing to the first day of the Next succeeding assessment period; and a prepayment of the immediately following monthly or quarterly assessment, the same prorations and prepayments shail be made with respect to the Association’s assessments against the Dwelling Unit. d. Initial capita! contributions in an amount equal to two (2) months assessments/charges for the Oweiling Unit due to the Association, as determined at the time of closing. These charges will not be regarded as prepayments of such assessments/charges, or otherwise credited against such regular assessments/ charges, but shall be payable directly to the Association and may be used to pay any deficits of the Association. e A reimbursement to Seller for any utility, cable, satellite or interactive communication deposits or hook-up fees which Seiler may have advanced Prior to closing for the Dwelling Unit, other than any such charges which are the responsibility of the Association. The amount of this charge is now unknown, f. A charge of $25.00 for title examination and $25.00 for a computer update and re-certification of tittle to the Dwelling Unit. g. Reimbursement to Seller, and/or Seller's closing agents, for charges incurred in connection with coordinating closing with Buyer and/or Buyer's ender, including, without limitation, charges for messenger expenses, long distance telephone calls, photocopying expenses, telecopying charges and others. The amount of these charges is now unknown. Additionally, if Buyer obtains a loan and elects to have Seller's closing agent act as “loan” closing agent as well, Buyer agrees to Pay such closing agent, in addition to any cther sums described in this Agreement, an aggregate sum equal to $600.00, for the title examination, title searching and closing services related to its acting as “loan closing agent,” plus any sums necessary for reimbursement of actual costs incurred and any Premiums required (at promulgated rate) for any title endorsements, and for the cost of couriers, ovemight delivery services, photocopies, fong distance telaphone and facsimile charges and any other expenses incurred in connection therewith. The amount of these charges is now unknown, h Any charge for any options or upgrading of standard items included, orto be included, in and/or with the Dwelling Unit as agreed to in writing by both Buyer and Seller, if not previously paid. i. The late funding charges specified in paragraphs 2, 3 and 11, it applicable. The amount of any such charges is now unknown. i. The “Interest Charge” described in page 1 of this Agreement, if Buyer does not waive its right to have its deposit (up to ten percent (10%) of the Total Purchase Price) placed in an escrow account and/or any bond Premium as described in paragraph 2, if applicable. Current expenses of the Dwelling Unit (for example, taxes and government assessments and current monthly assessments of the Association) will be adjusted between Buyer and Seller at closing as described in the _. closing statement. The amount of this proration is now unknown. !n addition, at closing, Buyer shail prepay the next month’s assessments to the Association. If real estate taxes for the year of closing will be or have been assessed in the aggregate on the Community rather than ona home-by-home basis, Sellar will pay those taxes in full, but Buyer will pay to Seller at closing the Dwelling Unit's allocable share, prorated from the scheduled date of closing, of those taxes (if the taxes are then known), or the Dwelling Unit's allocable share (so prorated) of Seller's estimate of those taxes (if the taxes are not then known), subject to readjustment at Seller's or Buyer's request when the actual tax bill is received. This subparagraph shall survive (continue to he effective atter) closing. lf Seller determines taxes for the year of closing will be or have been assessed on a home-by-home basis, Buyer will be responsible for paying the tax bill on the Dwelling Unit in full and Seller will reimburse Buyer for the prorata share of those taxes, based on the maximum discount available, determined as of the scheduled closing date. Seiler will not be obligated to pay its share of those taxes to Buyer, however, until Buyer presents to Seller the actual tax bill for the Dwelling Unit. Smacview Contract Page 7 of 14 ATIVE COMPLA ie Buyer(s} initials ‘ i pO epee | 7 Eads Li ae iors iz 5 PAS Notwithstanding the foregoing, if a separate tax bill for the Dwelling Unit has been issued for the year of closing, then at the closing, taxes for the Dwelling Unit will be prorated based upon such tax bill. This subparagraph shall survive (continue to be effective after) closing. 15. Adjustments with the Association. Buyer understands that Seller may have to advance money to or for the Association to permit it to pay for certain of initial expenses (for example, but without limitation, insurance Premiums, Common Area utility charges and deposits, permit and license fees, charges for elevator and other service contracts, salaries of Association employees and other similar expenses). Seller is entitled to be reimbursed by the Association for all of these sums advanced by it. The Association may reimburse Seller out of assessments paid by Buyer and other unit owners as thosa assessments are collected at a later date, or by way of a credit against any obligation Seller may have to pay to the Association, at Seller's election. 16, Default. If Buyer fails to honor any of Buyer's promises or to perform any of Buyer's obligations under this Agreement (including making scheduled deposits and other payments), Buyer wil be in "defauit*. If Buyer is still in default five (5) days after Seller sends him notice of it, Seller can cancel this Agreement. If, however, Buyer's default is in failing to close on the scheduled date, Seller can cancel this Agreement upon written notice to Buyer without giving Buyer any prior (or subsequent) notification or opportunity to close at a later date, Upon Buyer's default (and the expiration of any cure period, if any), ail of Buyer's rights under this Agreement will end and Seller may resell or hold the Dwelling Unit without any accounting or further notification to Buyer. Buyer understands that because Seller has taken the Dwelling Unit off the market, has spent money on sales, advertising, promotion and construction and has incurred other casts incident to this sale, that Buyer's default will damage Seller, As compensation for this damage, in the event Setter cancels this Agreement because of a default by Buyer, Buyer authorizes Seller to keep (or if not then paid by Buyer, Buyer will pay to Seller) all deposits than made or payable, and other pre-closing advance payments (including, without limitation, those on options, extras, upgrades and the like) all as liquidated damages (and not as a penalty), and for Seller to instruct Escrow Agent to release any such deposits and deliver them directly to Seller. Buyer and Seller agree to this measure of damages because there is no other Precise method of determining Seller's damage. if Buyer defaults and except as Maybe provided below, Buyer Promises not to sue for the retum of any part of his deposits or other payments. Any damage or loss that occurs to the Dwelling Unit while Buyer is in default will not aftect Seller's rights arising from such default. The remedies alforded Seller in this paragraph shail constitute Seller's sole and exclusive remedies. Buyer will give Seller twenty (20) days’ written notice of any default by Seller under this Agreement, and if Seller does not thereafter cure the default within such twenty (20) day period (uniess such default cannot be cured within such twenty (20) day period in which case Seller shall have such additional time as may be necessary to cure the default so long as Seller is diligently attempting to cure same and provided further that the foregoing shall not apply to nor ba deemed to extend Seller's absolute obligation to completa and to deliver the Dwelling Unit to Buyer within the time period required under paragraph 8 of the Agreement from the date of execution of this Agreement). If Seller has not cured the default within such period, Buyer, as its sole remedies, shail have the tight to receive a retum of its deposits (to the extent made by Buyer) and to seek any actual (but not consequential) damages against Seller. Notwithstanding the foregoing, in the event the default is due to the Seller's failure to complete the Dwelling Unit within the time period required under paragraph 8 of this Agreement, Seller shall not be entitled to the curative period described above and Buyer may pursue all such cther remedies as may be available to Buyer at law or in equity, including specific performance at Seller's completion obligation. Without limiting the generality of paragraph 33 of this Agreement, this paragraph 15 will survive (continue to be effective after) closing, 17. Litigation. The prevailing party in any suit or other proceeding brought by either Buyer or Seller with respect to this Agreement will be entitled to recovery of its reasonable attorneys’ fees and costs incurred in such suit of proceeding or in any appeal thereof. Without limiting the generality of paragraph 33 of this Agreement, this Paragraph 16 will survive (continue to be effective after) any termination or cancallation of this Agreement prior to closing. 18, Maintenance Fees. Buyer understands that the Estimated Operating Budget (the Budget") provides only an estimate of what it will cost to run the Association during the period of time stated in the Budget. Neither the monthly assessments for the Dweiling Unit payable to the Association shown in the Budget, nor the level of assessments payable to the Association, are guaranteed, nor the Association may make changes in its applicable Budget at any time to cover increases or decreases in actual expenses or estimates. Without limiting the generality of paragraph 26 of this Agreement, those changes will not give Buyer any right to cancel this Agreement. 19, Seller's Use of the Community. As long as Seller owns a Dwelling Unit, or any other portion of the Community, Seller and its affiliates, invitees, licensees, contractors and subcontractors (collectively, “Permitees”), can keep officas and models within the Community. Seller and its Permitees may show these Dwelling Units, erect advertising signs and do whatever is necessary, in Seller's opinion to help sell or lease the Dwelling Units or develop, manage, service or repair any portion of the Dwelling Unit and the Community, but Seller's use of the Dwelling Unit within the Community must be reasonable, in Seller's opinion, and cannot unreasonably interfere, in Seller's opinion, with Buyer's use and enjoyment of the Dwelling Unit. Lee SELLER AND ITS AFFILIATES WILL BE CONDUCTING CONSTRUCTION AND OTHER ACTIVITIES WITHIN OR AROUND THE COMMUNITY, BOTH BEFORE AND AFTER BUYER CLOSES UNDER THIS AGREEMENT. ~ BUYER RECOGNIZES THEIR RIGHTS TO DO SO AND WILL NOT (I) DEEM ANY OF THESE ACTIVITIES TO BE NUISANCES OR NOXIOUS OR OFFENSIVE ACTIVITIES, (Il) ENTER, OR ALLOW ANY OTHERS UNDER BUYER'S CONTROL TO ENTER ANY AREAS WHERE SUCH ACTIVITIES ARE BEING CONDUCTED (EVEN WHEN THEY HAVE TEMPORARILY CEASED, SUCH AS DURING NON-WORKING HOURS) OR (If!) HOLD SELLER OR ITS AFFILIATES, OR BOTH OF THEM, LIABLE OR SUE SELLER AND/OR ITS AFFILIATES FOR ANY DAMAGE OR INJURY ARISING FROM OR CONNECTED WITH ANY OF THE ACTIVITIES DESCRIBED ABOVE. “Affiliate”, for the purposes of this Agreement, means a person or entity which (either directly or indirectly, through one or more intermediaries) controls, is in common control with or is controlled by, another person or entity, and any person or entity that is a director, trustee, officer, employee, agent, partner, shareholder, subsidiary or Smacview Contract mee POMINISTRATIVE CONANT 2 J Page 8 of 14 ; [pi s cai | PAGE, 0 g OF attorney of any of the foregoing. For the Purposes of this definition, the term “control” means (a) legal or beneficial ownership of tan percent (10%} or more cf the voting interests of an entity or (b) the possession, directly or indirectly, of the power to direct or cause the direction of the management or policies of a person or entity, whether through the ownership of voting securities, by contract or otherwise. Without limiting the generality of paragraph 33 of this Agreement, this paragraph 18 will survive (continue to be effective after) closing. 20. Sales Commissions. Seller will pay all sales commissions due its in-house sales personnel and to the co-broker, if any, listed on page 1 of this Agreement (if the space on page 1 for a co-broker'is left blank, it shail mean that Seller has not agreed to pay any co-broker). Seller has no responsibility to pay any sales commissions to any other broker or sales agent with whom Buyer has dealt (except as specifically named herein and then only as Seller has agreed in writing). Buyer will be solely responsible to pay any such brokers. By signing this Agreement, Buyer is representing and warranting to Seller and Seller is relying on said representation and warranty, that Buyer has not consuited or dealt with any other broker, salesperson, agent or finder other than Seller's sales personnel (and the co-broker, if any, named in Page 1 of this Agreement) and that Buyer will indemnify and hold Seller harmless for and from any such person or company claiming otherwise. Buyer's indemnity and agreement to hold Seller harmless includes, without limitation, Buyer's obligation to pay or reimburse Seller for all commissions, damages, and other sums for which Seiler may be held liable and ail attomeys' fees and costs actually incurred by Seller (inciuding those for appeais), regardless of whether a lawsuit(s) is actually brought or whether Seller ultimately wins or loses, Buyer understands and agrees that Seller's in-house sales Personnel are agents of Seller only (and is not Buyer’s agents and/or dual agents). As Seller's agents, they owe the following duties: (i) to Seller, a fiduciary duty to represent the interests of, and use utmost care, integrity, honesty and loyalty to, Seller, and {il} to both Buyer and Seller, the duty to diligently exercise reasonable skill and care in performance of the agent's duties, a duty of honesty and fair dealing and good faith, and a duty to cisciose all facts known to the agent materially affecting the value or desirability of property that are not known to, or within the diligent attention and observation of the parties. Sellers agents are not obligated to reveal to either party any confidential information obtained from the other party which does nat involve the affirmative duties of the agent(s) set forth in this paragraph Without limiting the generality of paragraph 33 of this Agreement, this paragraph 19 will survive (continue to be effective after) closing. 21. Notices. Whenever Buyer is required ar desires to give notice to Seller, the notice must be in writing and it must be sent by certified mail, Postage prepaid, with a retum receipt requested to Saller and addressed as follows: Smacview, Inc., 1440 Coral Ridge #272 Coral Springs, Fl, 33071. Copies of all notices to Seller shall also ba sent to the Escrow Agent, COUNTYLINE LAND TITLE GROUP, 603 Hollywood Blvd, Hollywood, Fl, 33024, or at such other addresses as Seller may otherwise direct. Unless this Agreement states other methods of giving notices, whenever Seller is required or desires to notify Buyer, the notice must be given either in Person, by telephone or in writing and, if in writing, it must be sent either by: (i) certified mail, Postage prepaid, with a return receipt requested (unless sent outside of the United States, in which event written notices to Buyer may be sent by reguiar air mail); {ii} facsimile transmission if Buyer has indicated a telecopy number on Page | of this Agreement or (iii) a recognized overnight courier service (ie., Federal Express, Express Mail, Emory, Purolator, United Parcel Service, étc.), to the address for Buyer set forth on Page 1 of the Agreement. Alternatively, if Buyer is tepresented by counsel, Seller may instead send any notices only to Buyer's counsel, . : A change of address notice is effective whan it is received. All other written notices are effective on the day they are properly sent (and all permitted non-written notices to Buyer are affective on the date given by Seller), whether or not received, unless teceipt is required specifically in portions of this Agreement. 22. Transter or Assignment. Buyer has no right to assign, sell or transfer his interest in this Agreement or its rights hereunder without the prior express written consent of Seller, which may be unreasonably withheld by Seller with or without cause. To the extent that Seller consents to any such assignment, said consent may be conditioned in any manner whatsoever, including, without limitation, charging an assignment or transfer fee. Any assignee must fully assume ail of the obligations of Buyer hereunder by written agreement far Seller's benefit, in form and content acceptable to Seller, a counterpart original executed copy of which shail be delivered to Seller. Without limiting the generality of the foregoing, Buyer shail not, prior to closing, list the Unit for resale with a broker or allow the Unit ta be listed on any multiple listing service for resale. if Buyer is a corporation, partnership, limited liability company, other business entity, trustee or nominee, a transfer (whether voluntary, involuntary, by operation of law or otherwise) of any stock, partnership interest, membership interest, equity, beneficial or principal interest in Buyer or a change in the control of Buyer or a merger or consolidation or other business combination involving Buyer will constitute an assignment of this Agreement requiring consent, Without limiting the generality of the foregoing, Buyer shall not, prior to closing on title to the Dwelling Unit, without obtaining the prior written consent of Seller (which may be granted or withheld in Seller's sole and absolute discretion) advertise, market and/or list the Unit for sale or resale, whether by placing an advertisement, listing the Unit with a broker, allowing the Unit to be listed on the Multiple Listing Service or otherwise. Any violation of the foregoing shail be deemed an immediate and uncurable default by Buyer under this Agreement. Seller may assign or transfer freely any or ail of its rights and obligations under this Agreement (including its rights in and to Buyer's deposits and all other payments made by Buyer), to any affiliated or nonaffiliated party, or to any lender providing financing for ail or any portion of the Owelling Unit, the Community and/or the surrounding ~ properties. we . Se 23. Limitation of Sales. Seller reserves the Fight to limit the sale of homes in the Community and to refuse, in its sole discretion, to sell more than one home to any buyer or to any group of affiliated buyers. 24, Others Bound by this Agreement. If Buyer dies or in any way loses legal control of his affairs, this Agreement will bind his heirs and personal representatives. If Buyer has received permission to assign or transfer his interest in this Agreement, this Agreement will bind anyone receiving such interest. if Buyer is a corporation or business entity, this Agreement will bind any successor corporation or entity 25. Public Records. Buyer authorizes Seller to record the decuments needed to establish and operate Smacview Contract ALMUMIS THALIVE CONTR LAINT Page 9 of 14 fC the Community, as weil as ail other documents, which Seller deems necessary or appropriate, in the Public Records of Broward County, Florida. Neither this Agreement nor any notice or memorandum hereof (nor any Lis Pendens, except to the extent permitted under paragraph 15 herein). 26. Florida Law, Venue; Severability. Any disputes that arise or develop under this Agreement will be Settled according to Florida law. Buyer and Seller agree that venue is. proper in Miami-Dade County, Florida. if any part of this Agreement violates a provision of law, the law will control In such case, however, the rest of the Agreement (not in violation) will remain in force. Without limiting the generality of the foregoing, it is Seller’s and Buyer's mutual desire and intention that all Provisions of this Agreement be given full effect and be enforceable strictly in accordance with their terms. If, however, any part of this Agreement is not enforceable in accordance with its terms or would render other parts of this Agreement or this Agreement, in its entirety, unenforceable, the unenforceable part or parts are to be judicially Modified, if at all possible, to come as close as possible to the expressed intent of such part or parts (and still be enforceable without jeopardy to other parts of this Agreement, or this Agreement in its entirety), and then are to be enforced as so modified. if the unenforceable part or parts cannot be so moditied, such part or parts will be unenforceable and considered nuil and void in order that the mutual paramount goal (that this Agreement is to be enforced to the maximum extent possible strictly in accordance with its terms) can be achieved, Without limiting the generality of the foregoing, if the mere inclusion in this Agreement of language granting to Seller certain rights and powers, or waiving or limiting any of Buyer's rights or powers or Seller's obligations (which otherwise would be applicable in the absence of such language), results in a final conclusion (after giving effect to the above judicial modification, if possible) that Buyer has the right to cancel this Agreement and receive a refund of his deposits, such offending rights, powers, limitations and/or waivers shall be struck, canceled, rendered unenforceable, ineffective and null and void. Under no circumstances shall either Buyer or Seller have the right to cancel this Agreement solely by reason of the inclusion of certain language in this Agreement (other than language which is intended specifically to create such a cancellation right). The following sentence will supersede and take precedence over anything else in this Agreement which is in conflict with it, if any provisions serve to: (1) limit or qualify Seller's obligation to complete the Dwelling Unit in the time required in paragraph 8 hereof, or (2) limit Buyer's remedies in the event that such obligation is breached, or (3) grant Seller an impermissible grace period, and such limitations or qualifications are not permitted for this sale to qualify for the “Improved Lots” exemption under the Interstate Land Sales Full Disclosure Act, Pursuant to 15 U.S.C. 1702(a)(2), then any such provisions are hereby stricken and made nuil and void as if never a part of this Agreement. 27, Changes. Seller may, in its sole and absolute discretion, make any and ail changes in the Homeowners’ Documents as it, governmental authorities having jurisdiction thereof, title insurance companies, or mortgage lenders require or deem necessary or appropriate. Without limiting the generality of paragraph 33 below, this paragraph 26 will survive (continue ta be effective after) closing. 28. — Time of Essence. The performance of all obligations by Buyer on the precise times stated in this Agreement is of absolute importance and failure to so perform on time is a default, time being of the essence. 29. Joint Obligation. If more than one person signs this Agreement as Buyer, each will be equally fable for full performance of all Buyer's duties and obligations under it and Seller can enforce it against either as individuals or together. 30. Disclaimer of Implied Warranties. Specimen copies of any manufacturers’ warranties received by Seller will be passed through to Buyer at closing and are not expressly warranted by Seller. As a specific inducement to Seller to execute this Agreement, Buyer acknowledges that Sellar, its employees, agents, brokers and other representatives have made no additional warranty, representation, guarantee or promise of any kind, express or implied, including, that the warranties described herein shall be in lieu of any other warranty, express or implied, including but not limited to, any implied warranty of merchantability, habitability, and/or quality or fitness for a particular purpose, and that except as provided herain, Buyer Is buying and shall accept possession of the Dwelling Unit in the condition itis in at the time of Buyers inspection thereof, subject to those items which Seller agrees to correct by so indicating on the inspection statement. Seller shall have no further liability or obligation whatsoever with respect to the Dwelling Unit or the condition or construction thereof, or any occurrence directly or indirectly arising therefrom. To the maximum extent lawful all implied warranties of fitness for a particular purpose, merchantability and habitability, all warranties imposed by statute and all other implied warranties of any kind or character are specifically disclaimed. Seller has not given and buyer has not relied on or bargained tor any such warranties. . As to any implied warranty which cannot be disclaimed entirely, all secondary, incidental and consequential damages are specifically excluded and disclaimed (claims for such secondary, incidental and consequential damages being clearly unavailable in the case of implied warranties which are disclaimed entirely above). Without limiting the generality of paragraph 33 below, this paragraph 29 will survive (continue to be effective after) closing. me SL Management Agreement. Buyer understands that the Association may enter into. management contracts whereby certain management services are provided for by a third party management company. If the Association enters into such a contract, Buyer understands that the Association will be obligated to pay fees to the manager. Buyer also recognizes that the manager may have other business relationships with Seller and that people Seller appoints will serve on the Board of Directors of the Association (and may also serve on Seller's Board), but Buyer does not find these facts objectionable. Without limiting the generality of paragraph 33 below, the provisions of this paragraph 30 will survive (continue to be effective after) closing. 32. Return of Homeowners’ Documents. If this Agreement is canceled for any reason, Buyer will retum ‘Smacview Contract : Page 10 af 14 one ETL ta RP RAINE iT I3 to Seller all of the Homeowners’ Documents delivered to him in the same condition received, reasonable wear and tear excepted. {f Buyer fails to return the Homeowners’ Documents, Buyer agrees to pay Seller $50.00 to defray the cost of preparation, printing and delivery, which sums Seller may deduct from any deposits or other sums to be retumed to Buyer. 33. Waiver, Recording. Seller's waiver of any of its rights or remedies or failure to enforce any of its fights or remedies (which can only occur if Seller waives any right or remedy in writing) will nat waive any other of Seller's rights or remedies or prevent Seller from later enforcing ail of Seller's rights and remedies under other circumstances. Neither this Agreement, nor any notice or memorandum hereof (nor any Lis Pendens, except to the extent permitted under paragraph 15 herein), may be recorded. Any such recordation by Buyer will be an immediate default, upon which Seller may, in Seller's sole discretion, cancel this Agreement without natice to Buyer. Seller shail have no obligation to grant any grace period or other right to cure, in such event. 34, Survival, Only those provisions and disclaimers in this Agreement, which specifically state that they shall be in effect after closing, will survive (continue to be effective after) closing and delivery of the deed. All other provisions shall be deemed merged into the deed. 35. Substantial Completion. Whenever this Agreement requires Seller to complete or substantially aabete an item of construction, that item will be understood to be complete or substantially complete upon the ~~ 36. Risk of Loss. 'fthe improvements constituting or within the Community are damaged by fire or ather 38. Buyer's Certification. Buyer hereby certifies, under penalties of perjury, that the taxpayer's identification or social security number for Buyer as set forth on page 1 hereof is correct, and understands that failure to provide the correct taxpayer's identification or social security number, as required by law, may subject Buyer to civil or criminal penaities. 39. incorporation: Definitions. The explanations, definitions, disclaimers and other provisions set farth in the Homeowners’ Documents are incorporated into this Agraement as if repeated at length here. When the 40, * Seller's Opinion/Discretion. Except as specifically provided to the contrary in this Agreement, wherever this Agreement requires or permits Seller's opinion or discretion (or words of similar import) to govern any matter, Seller will not be permitted, for purposes of this Agreement, to form an opinion which is entirely unreasonable, nor to exercise its discretion in an entirely unreasonable manner. However, if any such opinion or exercise of discretion is not entirely unreasonable, it will control for purposes of this Agreement. Without limiting the generality of the foragoing, wherever this Agreement specifically permits Sellerto act in its sole discretion or to make a decision which may be unreasonable (or words of similar import), Seller's actions or decisions with respect to such matters will control for purposes of this Agreement even if unreasonable. 41. Association. This Agreement is alsc Buyer's application for membership in the Association which membership shall automatically take effect at closing. At that time, Buyer agrees to accept the liabilities and obligations of membership. Buyer acknowledges receipt of and agrees to be bound by the Homeowners’ Documents, as amended and supplemented from time to time. Buyer acknowledges and agrees that title to the Dwelling Unit shall be subject to such documents. 42, Negotiation. Buyer acknowledges that (a) it has had ample opportunity to inspect other similar communities and the documents for them, (b) Seller has clearly disclosed to Buyer its right to cancel this Agreement for any reason whatsoever (including any dissatisfaction with the provisions of this Agreement or the Governing Documents) within three (3) days following the execution of this Agreement and the delivery of the Governing Documents and any amendments thereto, and (c) that although Seller's sales agents are not authorized to change the form of this Agreement, they have strict instructions from Seller to communicate any of Buyer's requests for changes to Seller's management, which has given Buyer the opportunity to discuss and negotiate such changes. In light of the foregoing, subject to Buyer's right to reconsider and cancel this Agreement within the three (3) day period described elsewhere in this Agreement, Buyer's decision to sign this Agreement now is totally free and voluntary and if Buyer fails to exercise its right to cancel as stated above, that will mean that it acknowledges and accepts all of the provisions of the Agreement and the Governing Documents as fair, reasonable, negotiated, discussed and explained to its satisfaction. Furthermore, notwithstanding the fact that the form of this Agreement has been drafted, initially, by Seller, because this Agreement is a negotiated arm's length agreement, the principle of contract interpretation which would result in any ambiguity being construed against the draftsman shall not, and is not intended, to apply. 43. Seller's Representations. Buyer acknowledges warrants, represents and agrees that this Agreement is being entered into by Buyer without reliance upon any representations conceming any potential for future profit, any rental income potential, tax advantages, depreciation or investment potential or any monetary or financial advantage. Buyer acknowledges and agrees that no such representations, including representations as to the ability or willingness of Seller or its affiliates to assist Buyer in renting or selling the Dwelling Unit, have been made by Smacview Contact LOE) E COMERAINTE Page 11 of 14 : Seller, or any of its agents, employees or representatives. This Agreement contains the entire understanding between Buyer and Seller, and Buyer hereby acknowledges that the displays, architectural models, artist renderings and other promotional materials contained in the sales office and model Properties are for promational purposes only and may not be relied upon. Ail descriptions of the locations, areas, capacities, and sizes of all or any portions of the Dwelling Unit and other facilities are approximations only and are based upon architectural measurements. Buyer warrants that Buyer has not relied upon any verbal representations, advertising, portrayals or promises other than as expressly contained herein and in the Homeowners’ Documents, including, specifically, but without limitation, any representations as to: (a) potential appreciation in or resale value of the Dwelling Unit, (b) the existence of any “view” from the Dwelling Unit or that any existing “view” will not be obstructed in the future, (c) traffic conditions in, near or around the Community, (d) disturbance from nearby properties, (@) disturbance from air or vehicular traffic, or (f) any future use of any adjacent Properties. Buyer further warrants, represents and agrees the Dwelling Unit will not be used as an investment property for resale or “flip”. The provisions of this paragraph 42 shall survive the closing. 44. Disclosures, Under the laws of the State of Florida, Buyer is hereby advised as follows: a. Radon. Radon is a naturally occurring radioactive gas that, when it has: accumulated in a buitding In suiticient quantities, may present heaith risks to persons who are exposed to it over time. Levels of radon that exceed federal and state quidelines have been found in buildings in Florida, Additional information regarding radon and radon testing may be obtained from your county public health unit. The foregoing notice is provided in order to comply with state law and is for informational purposes only. Seller does not conduct radon testing with respect to the Dwelling Unit, and specifically disclaims any and all representations or warranties as to the absence of radon gas or radon producing conditions in connection with the Dwelling Unit. b. Property Tax Disclosure Summary: BUYER SHOULD NOT RELY ON THE SELLER'S CURRENT DWELLING UNIT TAXES AS THE AMOUNT OF DWELLING UNIT TAXES THAT THE BUYER MAY BE OBLIGATED TO PAY INTHE YEAR SUBSEQUENT TO PURCHASE. A CHANGE OF OWNERSHIP OR DWELLING UNIT IMPROVEMENTS TRIGGERS REASSESSMENTS OF THE DWELLING UNIT THAT COULD RESULT IN HIGHER DWELLING UNIT TAXES. IF YOU HAVE ANY QUESTIONS CONCERNING VALUATION, CONTACT THE GOUNTY DWELLING UNIT APPRAISER'S OFFICE FOR INFORMATION. © —_ Section 558.005, Florida Statutes. FLORIDA STATUTES CONTAINS IMPORTANT REQUIREMENTS YOU MUST FOLLOW BEFORE YOU MAY BRING ANY LEGAL ACTION FOR AN ALLEGED CONSTRUCTION DEFECT IN YOUR UNIT OR CONDOMINIUM. SIXTY DAYS BEFORE YOU BRING ANY LEGAL ACTION, YOU MUST DELIVER TO THE OTHER PARTY TO THIS AGREEMENT, A WRITTEN NOTICE REFERRING TO CHAPTER 558 OF ANY CONSTRUCTION CONDITIONS YOU ALLEGE ARE DEFECTIVEAND PROVIDE SUCH PERSON THE OPPORTUNITY TO INSPECT THE ALLEGED CONSTRUCTION DEFECTS AND TO CONSIDER MAKING AN OFFER TO REPAIR OR PAY FOR THE ALLEGED CONSTRUCTION DEFECTS. YOU ARE NOT OBLIGATED TO ACCEPT ANY OFFER WHICH MAY BE MADE. THERE ARE STRICT DEADLINES AND PROCEDURES UNDER THIS FLORIDA LAW WHICH MUST BE MET AND FOLLOWED TO PROTECT YOUR INTERESTS. 45. | Construction_1 ies Recovery Fund. PAYMENT MAY BE AVAILABLE FROM THE CONSTRUCTION INDUSTRIES RECOVERY FUND IF YOU LOSE MONEY ON A PROJECT PERFORMED UNDER CONTRACT, WHERE THE LOSS RESULTS FROM SPECIFIC VIOLATIONS OF FLORIDA LAW BY A STATE-LICENSED CONTRACTOR. FOR INFORMATION ABOUT THE RECOVERY FUND AND FILING A CLAIM, CONTACT THE FLORIDA CONSTRUCTION INDUSTRY LICENSING BOARD AT THE FOLLOWING TELEPHONE NUMBER AND ADDRESS: (850) 487-1395; CONSTRUCTION INDUSTRY LICENSING BOARD, 1840N. MONROE STREET, TALLAHASSEE, FL 32399. 46. Flood Disclaimer. Buyer acknowledges and agrees that portions of the Community, including without imitation, the parking areas may be located below the federal flood plain, and, accordingly, in the event of flooding, any personal property stored therein is susceptible to water damage. Additionally, insurance rates for the Association insuring the Common Areas and other portions of the Community may be higher than if those portions of the Community were above the federal flood plain. By acquiring title to, or taking possession of, a dwelling unit, or accepting the assignment of a parking space, if any, Buyer, for himself and its tenants, guests and invitees, hereby expressly assumes any responsibility for loss, damage or liability resulting therefrom. The provisions of this paragraph shall survive the closing. 47. Mold Disclaimer. Mold is found both indoors and outdoors. The Presence of mold may cause Dwelling Unit damage or health problems. Additional information regarding mold and a mold inspection may be obtained from your county public health unit or a professional trained in that field. The foregoing notice is provided in order to comply with state law and is for informational purposes only. Seller does not conduct mold inspection with respect to the Residences, and specifically disclaims any and all representations or warranties as to the absence of mold in connection with the Residences. 48. Previous Occupancy. The Dwelling Unit has not been previously occupied. 49, Waiver of Jury Trial. Seller and Buyer agree that neither Selier, Buyer, nor any assignee, successor, heir, or legal representative of Seller or Buyer (all of whom are hereinafter referred to as the “parties”) shall seek a jury trial in any lawsuit, proceedings, counterclaim, or any other {litigation procedure based upon or arising out of this Agreement, the Homeowners Documents, any rules or reguiations of the Association, or any instrument evidencing or relating to any of the foregoing, or any actions, dealings or relationship between or among the parties, or any of them. None of the Parties will seek to consolidate any such action, in which a jury trial has been waived, with any other action in which a jury trial has not been waived. The provisions of this paragraph have been fully negotiated by the parties and these provisions shall be subject to no exceptions. Seller has in no way agreed that the provisions of this paragraph will not be fully enforced in all instances. 50. Disclaimers. No representations or warranties of any kind, express or implied, have been given or made by Seller or its agents or employees, unless expressly set forth in this Agreement or any of the Homeowners’ Documents delivered by Seller prior to the execution hereof by Buyer and, without limiting the generality of paragraph 29 herein, the Seller hereby specifically disclaims any liability or responsibility ‘Smacview Contract . Page 12 of 14 r for the following: (a) any matters relating to the views, designs, security and privacy of the Dwelling Units and other portions of the Community and the design, height and density of the surrounding properties; (b) the compliance with applicable law, the prevention of tortuous activities, the security, health, safety or welfare of any owner, occupant or user of any portion of the Community, without limitation, Owners and their families, guests, invitees, agents, servants, contractors or subcontractors; (c) the physical condition, zoning, compliance with applicable law, merchantability, habitability, fitness for a particular purpose of any portion of the Common Areas, other portions of the Community, including (without limitation) the sale, Operation, level or cost of maintenance, taxes or regulation thereof; (d) bowing and/or deflection of materials, and cracking and settlement of improvements, which Buyer recognizes and agrees is typical in the type of improvements in the Community; (e) molds, mildew, toxins and fungi which, given the climate and humid conditions in South Florida, may exist and/or develop within the Dweiling Units, and/or other Portions of the Community. Buyer acknowledges that certain molds, mildew, toxins and/or fungi may be, or if allowed to remain for a sufficient period may become, toxic and potentially pese a health risk; (f) noise, music, vibrations, odors, commotion and other unpleasant effects of nearby construction activity, and emanating from the development of the Community which may create disturbances impede the use of portions of the Community; (g) acts of God and uncontrollable events and, given the location of the Community, the exposure to the potential damages from flooding and from hurricanes, including (without limitation), damages from storm surges and wind-driven rain. Buyer acknowledges that portions of the Community are located may be below the federal flood plain, and, accordingly, in the event of flooding, any Property therein is susceptible to water damage. Buyer, by accepting and acquiring title to the Owelling Unit, and each other person having an interest in or tien upon, or making any use of, any portion of the Community (by virtue of accepting such interest or lien or making such uses), shall be bound by this paragraph, shall be deemed to have assumed the risks associated with each of the above matters and occurrences and shall be deemed to have automatically waived (to the maximum extent permitted by applicable law) any and all rights, claims, demands and causes of action against the Seller arising from or connected with any matter for which the liability of the aforementioned parties has been disclaimed in this paragraph. As to such warranties which cannot be disclaimed, and to other claims, if any, which can be made as to the aforesaid matters, ail incidental, special, punitive and consequential damages arising therefrom are hereby disclaimed. Buyer, by virtue of acceptance of title to the Unit shall be deemed to have automatically waived all of the aforesaid disclaimed warranties and incidental and consequential damages. As used in this paragraph, references to Seller shall include within their meaning its members, Partners, and its shareholders, directors, officers, board members, employees, agents, contractors, subcontractors, and its successors and assigns. 51. English Lanquage. Buyer acknowledges that this Agreement was negotiated in the English language. $2. Gender, Certain references used in this Agreement contained terms masculine/feminine and were used for convenience and such references shall be deemed to apply in the masculine/feminine/neuter where the text of this Agreement requires. , 53. Nearby Construction. Buyer understands and agrees that for some time in the future Buyer may be disturbed by the noise, commotion and other unpleasant effects of nearby construction activity and impeded in using portions of the Community by that activity. Buyer further understands and agrees that the various portions of the Community may be developed by various developers, and, accordingly, there is no assurance as to what, it anything, will be constructed within other parts of the Community. Because of the size of the planned development and the time it will take to develop it completely, great flexibility has been reserved as to what, if anything, will be construct. Except to the extent this Agreement specifically and explicitly provide otherwise, Seller and its affiliates will have no obligation {other than that imposed by governmental authorities) to build {or to assure in any manner construction of) any particular buildings or facilities or to build (or to assure in any manner construction af} what is built in any particular way and where and will it be constructed. 54, Entire Agreement. This Agreements the entire contract for sale and purchase of the Dwelling Unit and once it is signed, it can only be amended by a written instrument signed by both Buyer and Seiler which specifically states that it is amending this Agreement. Any current or prior agreements, representations, understandings or oral statements of sales representatives or others, if not expressed in this Agreement, the Homeowners Documents or in brochures for Sonoma Bay, are void and have no effect. Buyer has not relied on them. / $5. Disclosure Summary. The terms and conditions of the Homeowners’ Documents are incorporated by reference into this Agreement. IF THE DISCLOSURE SUMMARY REQUIRED BY SECTION 720.401, FLORIDA STATUTES, HAS NOT BEEN PROVIDED TO THE PROSPECTIVE BUYER BEFORE EXECUTING THIS CONTRACT FOR SALE, THIS CONTRACT IS VOIDABLE BY BUYER BY DELIVERING TO SELLER OR SELLER'S AGENT WRITTEN NOTICE OF THE BUYER'S INTENTION TO CANCEL WITHIN 3 DAYS AFTER RECEIPT OF THE DISCLOSURE SUMMARY OR PRIOR TO CLOSING, WHICHEVER OCCURS FIRST. ANY PURPORTED WAIVER OF THIS VOIDABILITY RIGHT HAS NO EFFECT. BUYER'S RIGHT TO VOID THIS CONTRACT SHALL TERMINATE AT CLOSING. THE DISCLOSURE SUMMARY REQUIRED BY SECTION 720.401, FLORIDA STATUTES PROVIDES: DISCLOSURE SUMMARY {Pursuant to Section 720.401 of Florida Statutes) oa AS A PURCHASER OF DWELLING UNIT IN THIS COMMUNITY, YOU WILL BE OBLIGATED TO Smacview Contract : , yek dee Ra a a nie Page 13 of 14 : i )D Bue a iz a 3 jal — - __L2__ oF FP on 35 ; BE A MEMBER OF THE SONOMA BAY COMMUNITY HOMEOWNERS ASSOCIATION, INC. 2. THERE HAVE BEEN OR WILL BE RECORDED AESTRICTIVE COVENANTS GOVERNING THE USE AND OCCUPANCY OF PROPERTIES IN THIS COMMUNITY. 3. YOU WILL BE OBLIGATED TO PAY ASSESSMENTS TO THE ASSOCIATION. ASSESSMENTS, MAY BE SUBJECT TO PERIODIC CHANGE. IF APPLICABLE, THE CURRENT AMOUNT IS $452.11 PER QUARTER. YOU WILL ALSO BE OBLIGATED TO PAY ANY SPECIAL ASSESSMENTS IMPOSED BY THE ASSOCIATION. SUCH SPECIAL ASSESSMENTS MAY BE SUBJECT TO CHANGE. IF APPLICABLE, THE CURRENT AMOUNT IS $. PER . 4. YOU MAY BE OBLIGATED TO PAY SPECIAL ASSESSMENTS TO THE RESPECTIVE A NANAAUTY, COUNTY, OR SPECIAL DISTRICT. ALL ASSESSMENTS ARE SUBJECT TO PERIODIC CHANG 5. YOUR FAILURE TO PAY SPECIAL ASSESSMENTS OF ASSESSMENTS LEVIED BY A MANDATORY HOMEOWNERS’ ASSOCIATION COULD RESULT IN A LIEN ON YOUR DWELLING UNIT. 6. THERE IS NOT AN OBLIGATION TO PAY RENT OR LAND USE FEES FOR RECREATIONAL OR OTHER COMMONLY USED FACILITIES AS AN OBLIGATION OF MEMBERSHIP IN THE HOMEOWNERS' ASSOCIATION. 7. THE RESTRICTIVE COVENANTS CAN BE AMENDED WITHOUT THE APPROVAL OF THE ASSOCIATION MEMBERSHIP, EXCEPT HOWEVER, PRIOR TO THE TERMINATION OF THE CLASS B CONTROL PERIOD (AS DEFINED IN THE RESTRICTIVE COVENANTS), NO AMENDMENT SHALL BE PERMITTED THAT CHANGES THE RIGHTS AND OBLIGATIONS OF THE DECLARANT {AS DEFINED IN THE RESTRICTIVE COVENANTS), UNLESS THE DECLARANT HAS FIRST CONSENTED THERETO IN WRITING. FURTHERMORE, BEFORE THE TERMINATION OF THE CLASS B CONTROL PERIOD DECLARANT MAY UNILATERALLY, AND WITHOUT THE JOINDER OF ANY OTHER PARTY, MAKE OTHER AMENDMENTS TO THE RESTRICTIVE COVENANTS AS ARE MORE PARTICULARLY SET FORTH THEREIN, 8. THE STATEMENTS CONTAINED IN THIS DISCLOSURE FORM ARE ONLY SUMMARY IN NATURE, AND, AS A PROSPECTIVE PURCHASER, YOU SHOULD REFER TO THE COVENANTS AND THE ASSOCIATION'S GOVERNING DOCUMENTS BEFORE PURCHASING A DWELLING UNIT. 9. THESE DOCUMENTS ARE OA WILL BE MATTERS OF PUBLIC RECORD, AND, WHEN RECORDED, CAN BE OBTAINED FROM THE RECORDER'S OFFICE IN BROWARD COUNTY, FLORIDA. ADMINISTRATIVE COMPLAINT ‘BIT # Lp el OF ere nas wor 3 pacr/J6 ba ian te—————-4__.__n ‘Smacview Contract Page 14 of 14 AGREEMENT SMACVIEW In this Agreement, which shail be effective as of the date above, the term "Buyer" means or refers to the buyer or buyers listed below whe have signed this Agreement. The words "Seller’ mean or refer to Smacview, Inc., a Florida corporation and its successors and/or assigns. If the first letter of a word is capitalized in this Agreement, that word will have the meaning given to it in this Agreement or in the Covenants (as defined in paragraph 1 of this Agreement}. : Buyer(s Marie Rose Saint-Louis ssa Property Address: 1120 Lucaya Drive-Unit#2101. City: Riviera Beach. State:FI Country: Usa Zip Code: 33404 HomeTelphones SSS mee Office Telephone: Office Fax: Cellular Phone(s): E-Mail Address: Social Security No(s): a Eee Ey Name and address to which all of Buyer's notices are to be given (leave blank if same as above): Name: ; nc | Street Address: . . ' Ns | City: State: Country: Zip Code: : ee Home Telephone: Home Fax: Office Telephone: ; Office Fax: ! Cellular Phone(s): E-Mail Address: Purchase Price: The Purchase Price of the Dwelling Unit has been determined as follows: Basic Purchase Price $ 305,000 Plus Extras/Options {if any) $ (set forth in separate addendum) Lot Premium $ - ’ TOTAL PURCHASE PRICE 305,006 $s The Total Purchase Price of the Dwelling Unit shall be paid as follows: Payment Due Date Amount {nitial deposit % Upon execution hereof $ 1 Balance (subject to adjustments, At Closing $ ; extras and prorations) In acichtion to the Purchase Price shown above, Buyer also agrees to pay the seller's Reimbursement Charge, all closing costs and other sums required to be paid by Buyer under this Agreement. At the present time, the costs for which dollar amounts can be computed are: @ 1.50% Developer Reimbursement See paragraph 13 on Page 6. b. Initial Capital Contribution to Homeowners Association See paragraph 13 an Page 6. These charges are subject to adjustment as provided in paragraph 13 of this Agreement, and are explained in more detail in that paragraph, as are other closing costs which cannct be computed at this time. : ‘SELLER: & z a: si EXHIBIT #1) aes LN bee wt ad a ea tee gb Date: _J-7 -O% - Date: aor [3 aa ° | ace} | Page 1 of 14 ‘ : : — ° “se ; . Buyers) tials LLL. THE BUYER OF A ONE-FAMILY OR TWO-FAMILY RESIDENTIAL DWELLING UNIT HAS THE RIGHT TO HAVE ALL DEPOSIT FUNDS (UP TO ...... PERCENT OF THE PURCHASE PRICE) DEPOSITED IN AN ESCROW ACCOUNT. THIS RIGHT MAY BE WAIVED, IN WRITING, BY THE BUYER. (Buyer to initial the paragraph below) BY BUYER INITIALING ON THE LINE PROVIDED BELOW, BUYER WAIVES THE RIGHT TO HAVE THE DEPOSITS PLACED IN ESCROW AS DESCRIBED ABOVE: Buyer(s) initiais —_______ ________ BUYER HEREBY ELECTS TO WAIVE ITS RIGHT TO HAVE DEPOSIT FUNDS (UP TO 10% OF THE PURCHASE PRICE) DEPOSITED IN AN ESCROW ACCOUNT, AND ACKNOWLEDGES AND AGREES THAT NO PORTION OF DEPOSITED FUNDS SHALL BE DEPOSITED IN AN ESCROW ACCOUNT. In the event Buyer does not waive the above escrow requirement, pursuant to Paragraph 2 of this Agreement, Buyer may be charged at closing any interest which Seller pays to borrow money, in an amount equal to the funds held in escrow (for construction purposes only), fora period not to exceed 12 months, but the Buyer will be credited for any interest actually accrued on the escrow account (only if escrowed funds are placed at interest), or the Buyer may be charged at clesing an amount equal to the premium for the applicable portion of the bond securing such portion of his or her deposit (the “Interest Charge”). 1. Buyer agrees to buy and Seller agrees to sell the proposed residence, identified at the top of page 1 hereof (the "Dwelling Unit"), on the terms and conditions contained in this Agreement in the proposed residential community known as Sonoma Bay (the “Community"). Buyer acknowledges that the Dwelling Unit, as part of the Community, is subject to, and Buyer acknowledges receipt of the "Homeawners’ Documents,” which include, among others, the Declaration of Covenants, Restrictions, and Reciprocal Easements for Sonoma Bay (the " Covenants"), Articles of Incorporation for Sonoma Bay Community Homeowners Association, Inc., By-Laws for Sonoma Bay Community Homeowners Association, Inc., and an Estimated Operating Budget. THE HOMEOWNERS’ DOCUMENTS CONTAIN IMPORTANT PROVISIONS CONCERNING AND RESTRICTING THE USE OF THE DWELLING UNIT, AND CREATE AND IMPOSE RIGHTS, DUTIES AND OBLIGATIONS ON THE BUYER, all of which may be amended from time to time as provided therein. Buyer hereby acknowledges that he has personally reviewed the Homeowners‘ Documents and found them acceptable and suitable for Buyer's purposes, that Buyer has telied upon his own judgment in making such determinations, and there were no warranties, representations, guarantees or promises, expressed or implied, with respect thereto by Seller or any of Seller's agents, employees or representatives or any independent contractor except thase which have been specifically set forth in this Agreement. 2. Deposit. Deposits may be made by personal check (subject to clearance) or in cash. The balance due at closing must be paid by cashier's check or wire transfer of federal funds. All payments must be made in U.S. funds and all checks must be payable on a bank located in Miami-Dade County, Broward County or Palm Beach County. Seller is not obligated to accept any deposit which Buyer fails to pay on time, and if Seller agrees to accept such deposit on a later date, Buyer will pay a late funding charge equal to interest on such deposit, at the then applicable highest lawful rate from the date due until the date of receipt and final clearance by Seller. At closing, all deposits not previously disbursed to Seller (and any interest earned thereon, if any) will be released to Seller and Buyer will be given a credit against the Total Purchase Price for all deposits, excluding any interest earned thereon. If Buyer defaults, Seller is entitled to retain all deposits (and any interest earned thereon, if any). If Buyer properly terminates this Agreement in the manner allowed in this Agreement or by applicable law, all deposits (including any interest earned thereon, if any) will be returned to Buyer within twenty (20) days after the effective date of Buyer's cancellation, or the date Buyer's deposit check(s) irrevocably clears, if later. Reference in the balance of this Agreement to "Buyer's deposits” shail not include any interest actually earned thereon. Seller may select the type of account in which to invest the deposits in its sole and absolute discretion, and nothing in this Agreement shall require Seiler or the Escrow Agent to place the deposits in an interest bearing account. Except as permitted below, all of Buyer's deposits will be held in escrow by COUNTYLINE LAND TITLE GROUP ("Escrow Agent”), with offices at 603 Hollywood Blvd, Hollywood, Fl, 33024, in accordance with the escrow agreement entered intc between Seller and Escrow Agent. The Escrow Agreement is incorporated inta this Agreement as if repeated at length herein and Buyer agrees that the deposits may be held in any depository which meets the requirements of applicable law, including, without limitation, a financial institution chartered and located outside the State of Florida. If Buyer so requests, Buyer may get a receipt for Buyer’s deposits from the Escrow Agent. Seller can change escrow agents (as long as the new escrow agent is authorized to be an escrow agent under applicable taw), in which case Buyer's deposits may be transferred to the new escrow agent at Seller's direction. In the event that Buyer does not waive its right to have deposits placed in an escrow account, Seller shall place the portion of the deposited funds up to 10% of the total Purchase Price in an escrow account with the Escrow Agent, and the release of the deposited funds shall be in accordance with §501.1375, Florida Statutes. When money has been placed in an interest-bearing escrow account pursuant te this paragraph, Seller shall be entitled to all interest accrued on the account, which shail be payable at closing. if Seller desires to use escrowed funds for building purposes, after notification to the Buyer, Seller shall acquire a surety bond issued by a company licensed to do business in this state, if such a bond is readily available in the open market, payable to Buyer in the amount of the escrow deposit; and the funds in the escrow deposit shall thereafter be released to Seller for construction purposes only or as otherwise permitted by law. In the case where no surety bond is available, Seller may borrow money in an amount equal to the funds held in escrow for construction purposes only, in which case any interest which Seller pays ‘Smacview Contract AUIVINNIO DWV ji ; Page 2 of 14 WAL EV Uti KAN EXHIBIT 4 IL Sue) intts PAGE OF NT 13 ssaddod on such a loan for a period not to exceed 12 months shall be paid by Buyer at the time of closing, but the Buyer shail be credited for any interest accrued on the escrow account. In lieu of, and as an alternative to, such requirements, a blanket or master surety bond issued by a company licensed to do business in the state of Florida may be acquired by Seller, in an amount equal to or greater than the total amount of the initial 10% escrow deposits withdrawn by Seller pursuant to this paragraph. Buyer shall be debited at closing in an amount equal to the premium for the applicable portion of the bond securing his or her deposit. The master surety bond amount and the pro rata share of bond premium debited against the Buyer may be based on a reasonable projection of annual escrowed deposit amounts which will be withdrawn pursuant to this paragraph. Bond rates charged under this paragraph shall be subject to the provisions of part | of chapter 627 of the Florida Insurance Code. Notwithstanding anything to the contrary in this Agreement, all of Buyer's deposits in excess of ten percent (10%) of the Purchase Price may be used by Seller for construction of the Dwelling Unit or as otherwise permitted by law. In the event that Buyer waives its right to have the deposited funds (up to 10% of the Purchase Price) deposited in an escrow account hereunder, all the deposited funds shall be paid by Buyer directly to Seller which shall be used by Seller in connection with the construction of the Dwelling Unit and/or as otherwise permitted by law. In the event that closing occurs, Buyer shall then have no right to place a claim on any escrowed funds for breach of this Agreement. 3. How Buyer Pays. Buyer understands and agrees that he will be obligated to pay “all cash" at closing. For purposes of this Agreement, "all cash" shall mean either a cashier's check drawn on and payable through a financial institution located in the continental United States or immediately available wired federal funds in U.S. Dollars. This Agreement and Buyer's obligations under this Agreement to purchase the Dwelling Unit will not depend on whether or not Buyer qualified for or obtains a mortgage from any lender. Buyer will be solely responsible for making his own financial arrangements. Seller agrees, however, to cooperate with any tender Buyer chooses and to coordinate closing with such lender, if, but only if, such lender meets the Sellers closing schedute and pays Seller the Proceeds af its mortgage at closing. in the event that lender does not pay Seller these proceeds at closing, Buyer will not be allowed to take possession of the Dwelling Unit until Seller actuaily receives ail the funds and such funds have cleared. Although Seller does not have to do so, if Seller agrees to delay closing until Buyer's lender is teady, or to wait for funding from Buyer's lender until after closing, or to accept a portion of the sums due at closing in the form of a personal check, Buyer agrees to pay Seller a late funding charge equal to interest, at the then highest applicable lawiul rate, on all funds due Seller which have not then been paid to Seller (and, with regard to personal checks and cashier's checks, which have not then cleared) from the date Seller originally scheduled closing to the date of actual Payment (and with regard to personal checks, to the date of final clearance). This late funding charge may be estimated and charged by Seller at closing. Seller's estimate will be adjusted after closing based on the actual funding and clearance dates upon either Seller's or Buyer's written request. Without limiting the generality of paragraph 33 of this Agreement, the foregoing sentence will survive (continue fo be effective after) closing. 4, Seller's Financirig. Seller may borrow money from lenders to acquire or finance the Community and to construct the Dwelling Unit. Buyer agrees that any lender advancing funds for Seller's use in connection with the Dweiling Unit will have a prior mortgage on the Dweiling Unit until closing. At that time, Seller may use all proceeds of Buyer's purchase which are necessary to release the Dwelling Unit from the then applicable mortgages for the purpose of obtaining those releases. Neither this Agreement, nor Buyer's payment of his deposits, will give Buyer any lien or claim against the Dwelling Unit. Without limiting the generality of the foregoing, Buyer's rights under this Agreement will automatically and unconditionally be subordinate to all mortgages {and all modifications made to those mortgages) affecting the Dwelling Unit even if those mortgages (or modifications) are made or recorded after the date of this Agreement, Notwithstanding the foregoing, at Seller's request, Buyer agrees to execute any and ail documents requested by Seller’s lender to further evidence such subordination. 5. Construction Specifications. The Dwelling Unit will be constructed in substantial accordance (in Seller's opinion) with the plans and specifications given to Buyer upon execution of this Agreement or held in Seller's office, as such plans and specifications are amended from time to time. Seller may make any changes in the plans and specifications that it deems appropriate at any time, to accommodate its in the field construction needs (as more fully discussed in this paragraph 5 and in response to recommendations or requirements of local, state or federal governmental or quasi-governmental agencies or applicable utility and/or insurance providers, and Buyer agrees that any changes made in accordance with the foregoing shail nat be deemed material in a manner which is adverse to the offering of the Dwelling Unit. Such plans and specifications, as they are so amended, are referred to in this Agreement as "Seller's Plans and Specifications". Without limiting Seller's general right to make changes, Buyer specifically agrees that changes in the dimensions of rooms and balconies, in the location of windows, doors, walls, partitions, utility (including, but not limited to, electrical, cable and telephone) lead-ins and outlets, air-conditioning equipment, ducts and components, lighting fixtures and electric panel boxes, and in the general layout of the Dwelling Unit, may be made by Seller in its discretion. In furtherance of the understanding and agreement stated above, Buyer acknowledges and agrees that itis a widely observed construction industry practice for pre-construction plans and specifications for any building to be changed and adjusted from time to time in order to accommadate on-going, “in the field" construction needs. These changes and adjustments are essential in order to permit all components of the building to be integrated into a well-functioning and aesthetically pleasing product in an expeditious manner. Because cf the foregoing, Buyer acknowledges and agrees that it is to his benefit to allow Seller the flexibility to make such changes in the Dwelling Unit. Buyer further acknowledges and agrees that (i} the plans and specifications for the floor plan of the model selected by Buyer that may be on file with applicable governmental authorities may not, initially, be identical in detail to Seller's Plans and Specifications, and (ii) because of the day-to-day nature of the changes described in this paragraph 5, the plans and specifications on file with applicable governmental authorities may not include some or any of these changes (there being no fegal requirement to file all changes with such authorities). As a result of the foregoing, Buyer and Seller both acknowledge and agree that the floor and/or building pian of the model selected by Buyer may not be constructed in accordance with the plans and specifications on file with applicable governmental authorities. Without limiting the generality of paragraph 29 beiow, Seller disclaims and Buyer waives any and all express or implied warranties that construction will be accomplished in compliance with such plans and specifications. Seller has not given and Buyer has not relied on or bargained for any such warranties. Without limiting the generality of the foregoing, because of Seller's need to coordinate the appearance and design of the Community, in connection with the nature and layout of the land on which construction is to take place Smacview Contract RMIVEEINIO DP RAEIY OUT RASS Page 3 of 14 EXHIBIT cae a a // a 2 wor eget 3 pao 293 and of the street, common areas and other features of the Community, Buyer understands and agrees: The Dwelling Unit may be constructed as a reverse ("mirror image") of, or otherwise in a manner different from, that illustrated in the floor and building plan of the applicable madel and building (as shown in the condominium documents or in any illustrations of the model and building); and may be ‘sited’ in a position different from that of the applicable model and floor and building plan (or any such illustrations). Buyer agrees to accept the Dwelling Unit as ‘sited" by Seller and as constructed according to a reverse floor and/or building plan. Buyer further understands and agrees that there are various methods for calculating the square footage and that the measurements of the Unit and facilities contained in sales brochures are based upon architectural measurements. Accordingly, the size of the Unit and these facilities may vary by more than a nominal amount. This paragraph does not limit the generality of Seller's Tights, set out elsewhere in this Agreement, to make other changes in the Dwelling Unit, the Community and the respective governing documents. The agreements and waivers of Buyer contained in this paragraph will survive (continue to be effective after) closing. 6, Certain Items and Materials. The Total Purchase Price of the Dwelling Unit includes only those items listed on the Seller's Plans and Specifications and unless itemized thereon, ail other items are NOT included with the Dwelling Unit. Buyer understands and agrees that certain other items such as the following, which may be seen in models (if any) or in illustrations, are not included with the sale of the Dwelling Unit: wail coverings, paint or paint colors (other than off-white), accent light fixtures, wall ornaments, drapes, blinds, furniture, knickknacks and other decorator accessories, lamps, mirrors, graphics, pictures, plants, wai-hung shelves, wet bars, Intercoms, kitchen accessories, linens, window shades, security systems, certain built-in fixtures, carpets or ather floor coverings and colors, woed trim, other upgraded items, planters, screening, fandscaping and any other items of this nature which may be added or deleted by Seller from time to time. This list of items (which is not all-inclusive) is provided as an illustration of the type of items built-in or placed upon the models (if any) or shown in illustrations strictly for the purpose of decoration and example only. {tems such as these will not be included in the Dwelling Unit unless specifically provided for in a published list of standard items (if any) or in an Addendum to this Agreement signed by both Buyer and Seiler. In the event that Seller does provide any of these or other items, however, Buyer agrees to accept them, although not requested by Buyer, as long as Buyer is not required to pay for such items. There is no obligation for Seller to provide models, but if so provided, the foregoing disclaimers will apply. Buyer further understands and agrees that certain items which may be included with the Dweiling Unit or shown in models, such as tile, cabinets, wood, stain, grout, wail and ceiling textures, cultured marble, mica and carpeting, are subject to size and color variations, grain and quality variations, and may vary in accordance with price, availability and changes by manufacturer from those shown in the models or in illustrations or included in Seller's Plans and Specifications or in the published list of standard items (if any). If circumstances arise which, in Seller's opinion, warrant changes of suppliers, manufacturers, brand names or items, Seller may substitute equipment, material, appliances, etc., with items, which in Seller's opinion are of equal or better quality. Buyer also understands and acknowledges that Seller has the right to substitute or change materials and/or stain colors utilized in wood decor (if any). Buyer recognizes that certain colcrs as shown in displays or in tha models, including, but not limited to, roof, carpeting and wood stain, will weather and fade and may not be duplicated precisely. 'f Seller allows Buyer to select certain colors and/or materials in the Dwelling Unit (which Seller is not obligated to do), Buyer understands and agrees that Buyer must submit his selectins to Seller in writing within fourteen (14) days after the date the list of selections {if any) is made available to Buyer. if these selections (If any) ara not delivered to Seiler in writing within the time frame stated above, then it is agreed and understood that the choices will be made by Seller in its sole discretion. 7. Insulation: Energy Efficiency. Seller has advised Buyer, as required by the rules of the Federal Trade Commission, that it currently intends to install in connection with the Dwelling Unit, the following insulation: 8. Thickness R-Vaiue | Location Fiberglass blanket and/or Polyurethane Batt Insulation and/or 4.2 | Demising AL-Foil Walls Batt Insulation and/or Exterior Walls AL-Foil This R-value information is based solely on the information given by the appropriate manufacturers and Buyer agrees that Seller is not responsible for the manufacturers’ errors. Alt information is subject to Seller's general tight, under paragraphs 5, 6 and 26 to make changes in Seller's Plans and Specifications, and to applicable limitations of Seller's liability to Buyer. Buyer also acknowledges receipt of the information brochure prepared by the Department of Community Affairs regarding energy efficiency ratings. All insulation and energy efficiency rating information is subject to Sellers tights, under this Agreement, to make changes in Seller's Plans and Specifications, and to limit Seller's liability to Buyer. | 9. Completion Date. The Estimated Completion Date is Seller's best, present estimate and is neither a representation nor a warranty that construction of the Dweiling Unit will be completed by that date. Notwithstanding the foregoing, in compliance with the requirements for the “Improved Lot" exemption under Section 1710-5(b) of the Interstate Land Sales Full Disclosure Act (15 U.S.C. 1701, et seq.), Seller is unconditionally obligated to complete and deliver the Dwelling Unit to Buyer within not more than twenty-four (24) months from the date of execution of this Purchase Agreement by Buyer; subject only to delays which would support a defense based upon impossibility of Po Pat Givi iN performance under applicable law. For purposes of this paragraph, the Dwelling Unit shail not be deemed to have '' been completed unless the Dwelling Unit is physically habitable and useable for the purpose for which the Dweling 118 IT #. Unit was purchased and has all necessary and customary utilities extended to it and available for service to initiated by Buyer. if, because of such delays, the Seller is unable to complete and deliver the Dwelling Unit WCE OF twenty-four (24) months from the date of execution of this Agreement by Buyer, then such time period shail fe Smacview Contract Page 4 of 14 iti . isin sve Ako ee extended for a term equal to the total period(s) attributable to the delays. Seller shal! have the tight, in Seller's sole and absolute discretion, to cancel this Agreement and to cause Buyer's deposits to be refunded in the event that Seller does not enter into binding contracts to sell at least seventy-five (75%) of the Dwelling Units in the Community. Seller must, however, notify Suyer of any such termination election within six (6) months from the date on which the first purchaser of a Dwelling Unit in the Community executes a binding purchase agreement for such dwelling unit; otherwise Seiler will be required to construct the Dwelling Unit and otherwise proceed to perform its obligations under this Agreement. This paragraph shail not delay the effectiveness of this Agreement which shail be immediate, but, rather, shall be deemed a “condition subsequent’ to this Agreement. In the event of Seller's election to terminate this Agreement pursuant to this paragraph, upon such termination and the retum of Buyer's deposits, Seller and Buyer will be fully relieved and released from all obligations and liabilities under and in connection with this Agreement. Seller agrees to use reasonable efforts to meet the foregoing pre-sale requirement. Notwithstanding anything to the contrary in this paragraph, or in this Agreement, itis the intention of the parties that this sale qualify for the “Improved Lots" exemption under 15 U.S.C. Section 1702(a){2) and that nothing contained in this Agreement shall be construed or shall operate in a manner inconsistent with the Seller's contractual obligation ta complete the Dwelling Unit within the time required for compliance with the foregoing exemption. 10. Completion of Dwelling Unit. Seller shall have complete discretion in finishing details, landscaping, amenities and beautification of the Community, and Seller may exercise such discretion without impediment. Renderings contained in brochures or sales material shall not be construed as representations by Seller, Subject to Seller's obligation herein, the fact that construction in areas surrounding the Dwelling Unit may not be completed, or that landscaping or sod may not be completed, shail not constitute a valid reason for Buyer's failure to close this transaction. 11. Inspection Prior to Closing: Non-interference with Work, Buyer will be given an opportunity prior to closing, on the date and at the time scheduled by Seller, to inspect the Dwelling Unit with Sellers representative. At that time, Buyer will sign an inspection statement listing any defects in workmanship or materials (only within the boundaries of the Dwelling Unit, itself), which Buyer discovers. If any item listed is actually defective in workmanship or materials in Seller's opinion (keeping in mind the construction standards applicable in Broward County, Florida for similar Dwelling Units), Seller will be obligated to correct those defects at its cost within a reasonable period of time after closing, but Seller's obligation to correct will not be grounds for deferring the closing, nor for imposing any condition on closing, No escrow or holdback of closing funds will be permitted. If Buyer fails to taka advantage of his right to a pre-closing inspection on the date and time scheduled, Seller will nat be obligated to reschedule an inspection prior to or after closing. Buyer acknowledges that all matters pertaining to the initial construction of the Dwelling Unit will be handled by Seller and Seller's representatives. Buyer may not order any work on the Dwelling Unit, other than prepaid options or extras that Seller agrees in writing to provide, until after closing. Buyer recognizes that Seller is not obligated to agree to provide extras or options. BUYER REALIZES AND ACKNOWLEDGES THAT ENTRY UPON THE COMMUNITY OR THE DWELLING UNIT DURING CONSTRUCTION CAN BE DANGEROUS AND THAT HAZARDS MAY EXIST WHICH ARE NOT READILY OBSERVABLE. TO PROTECT SELLER AGAINST LIABILITY WITH REGARD TO PERSONAL INJURIES, DEATH AND DWELLING UNIT DAMAGE, AND TO AVOID INTERFERENCE WITH THE SELLER'S EMPLOYEES, CONTRACTORS, SUBCONTRACTORS, LABORERS AND MATERIALMEN, BUYER AGREES NOT TO INTERFERE WITH CONSTRUCTION AND BUYER WILL STAY OFF THE JOB SITE. ANY SUCH INTERFERENCE OR ENTRY SHALL BE A DEFAULT UNDER THIS AGREEMENT AND SELLER WILL NOT BE LIABLE FOR ANY INJURY RESULTING FROM BUYER'S BREACH OF THIS PROVISION. NO PERSONAL INSPECTIONS (OTHER THAN THE ONE PRE-CLOSING INSPECTION) WILL BE PERMITTED. BUYER'S FAILURE TO ABIDE BY THE TERMS OF THIS AGREEMENT AND TO NEVERTHELESS ENTER THE DWELLING UNIT SHALL NOT ONLY BE A DEFAULT HEREUNDER, BUT SHALL ALSO BE DONE SOLELY AT BUYER'S RISK, BUYER HEREBY WAIVES ANY AND ALL CLAIMS AGAINST SELLER FOR ANY INJURY OR LOSS TO PERSON OR DWELLING UNIT ARISING OUT OF OR IN CONNECTION WITH SUCH ENTRY, AND BUYER SHALL DEFEND AND HOLD SELLER HARMLESS FROM AND AGAINST ANY INJURY, LOSS, DAMAGE OR EXPENSE TO PERSONS OR DWELLING UNIT ARISING OUT OF OR IN CONNECTION WITH BUYER'S ENTRY (OR ENTRY BY ANY OTHER PERSON ACCOMPANYING BUYER OR AT BUYER'S DIRECTION). Buyer can examine Seller's Plans and Specifications at Seller's business office, during regular business hours by making an appointment to do so in advance. 12. Closing Date. Buyer understands that Seller has the right to schedule the date, time and place for closing, provided however, that the closing s hall cccur within the time period required in paragraph 8 of this Agreement. Before Seller can require Buyer to close, however, two things must be done: (a) Seller must record the Covenants in the Broward County public records; and (b) Seller must obtain a temporary or final cerlificate of use and Occupancy or a Certificate of completion, or its equivalent, for or covering the Dwelling Unit from the proper governmental agency (the official approval needed before a Dweiling Unit may be lived in), but, subject and subordinate to the provisions of paragraphs 8 and 34 of this Agreement (without limiting the generality of those provisions by this specific reference). The Common Areas and Limited Common Areas (as defined in the Covenants) and other portions of the Community need not then have certificates of use and occupancy or completion, nor be fully completed. . Buyer will be given at least ten (10} days’ notice of the date, time and place of closing except in the event that Buyer's lender, if any, requires closing to be held on less than ten (10) days' notice, in which event, Buyer shall close Upon demand of his lender. Seller is authorized to postpone the closing for any reason and Buyer will close on the new date, time and place specified in a notice of postponement (as long as at least 3 days' notice of the new date, time and place is given). A change of time or place of closing only (one not involving a change of date) will not require any additional notice period. Any format notice of closing, postponement or rescheduling may be given orally, by telephone, telegraph, telex, telecopy, mait or other reasonable means of communication at Seller's option. All of these notices will be sent or directed to the address, or given by use of the information specified on page 1 of this Agreement, unless Seller has received written notice from Buyer of any change in Buyer's contact information prior to the date the notice is given. These notices will be effective on the date given or mailed (as appropriate). An affidavit of one of Seller's employees or agents stating that this notice was given or mailed will be deemed conclusive. After the notice is given or mailed, and if requested by Buyer, Seller or its agents will send a written confirmation of the closing, together with other pertinent information and instructions. This written confirmation is Smacview Contract AUD TRALIVE COMPLAINT Page 5 of 14 given merely as a courtesy and is not the formal notice to close. Accordingly, it does not need to be received by any Particular date prior to closing. Buyer agrees, however, to follow ail instructions given in any such notice and written confirmation. lf Buyer fails to receive any of these notices or the confirmation because Buyer failed to advise Seller of any change of address or phone, telecopy or telex number, because Buyer has failed to pick up a letter when he has been advised of an attempted delivery or because of any other reason, Buyer will not be relieved of his obligation to close on the scheduled date unless Seller agrees in writing to postpone the scheduled date. If Seller agrees in writing to reschedule closing at Buyer's request, or if Buyer is a corporation and Buyer fails to produce the necessary corporate papers Seller or Buyer's lender or mortgage broker {if any) requests and, as a result, closing is delayed, or if closing is delayed for any other reason (except for a delay desired, requested or caused by Seller), Buyer agrees to pay at closing a late funding charge equal to interest at the highest rate allowed by applicable law on the Total Purchase Price calculated on a daily basis from the date that the closing was originally Scheduled to the actual date of closing (or clearance of funds). Additional late funding charges also may be imposed as stated in paragraphs 2 and 3 of this Agreement. Ail prorations will be made as of the originally scheduled closing date. Buyer understands that Seller is not required to reschedule or permita delay in closing, and that Seller May treat Buyer as being in default if it fails to close when scheduled. 13, Closing. The term “closing” refers to the time when Seller delivers the deed to the Dwelling Unit to Buyer and ownership changes hands. Buyer's ownership is referred to as “title”. At closing Buyer shall pay all cash and execute and deliver all instruments required to close this transaction. Seller promises that the title Buyer will receive at closing will be good, marketable and insurable title (subject to the permitted exceptions listed or referred to below). Buyer will receive two (2) documents at closing which Buyer agrees to accept as proof that his title is as represented above: a. Awritten commitment from a title insurance company licensed in Florida agreeing to issue a policy insuring title (American Land Title Association Owner's Policy, Standard Form 8) or the policy itself. This commitment (or policy} will list any exceptions to title. Permitted Exceptions (exceptions which Buyer agrees to take title subject to) are: (I) Liability for all taxes affecting the Dwelling Unit starting the year Buyer receives tile and continuing thereafter, (i) Standard exceptions for waterfront property and artificially filed-in property which was once within navigable waters and other standard exceptions for similar property; (iii) Ail laws, and ail restrictions, covenants, conditions, limitations, agreements, reservations and easements recorded in the public records of Broward County, Florida, including, without limitation, zoning restrictions, property use limitations and obligations, easements (rights-of-way) and agreements relating to telephone lines, water and sewer lines and other utilities; (Iv) The Declaration of Covenants, Restrictions and Easements for Sonoma Bay and all exhibits thereto (the “Governing Documents’), recorded in the Public Records of Broward County, Florida, and the restrictions, covenants, conditions, easements, terms and other Provisions imposed by the documents contained or referred to in the Homeowners’ Documents (and any other documents which Seller, in its sole discretion, believes to be necessary or appropriate) which are recorded, now or at any time after the date of this Agreement, in the public records of Broward County, Florida; (v) Pending governmental liens for public improvements as of closing and installments for assessments for certified governmental liens which are not due and payable as of closing; provided, however, that to the extent that any such certified liens are payable in installments, Seller shalt only be responsible for those installments due prior to closing, and Buyer hereby assumes all installments coming due after closing; (vi) Any mortgage executed by Buyer which encumbers the Dwelling Unit; (vii} Any matters not listed above as long as title insurance is given for these matters. (viii) All standard printed exceptions contained in an ALTA Owner's title insurance policy issued in Broward County, Florida, other than taxes and assessments for the year of closing which are not then due and payable; and (ix) any matters not listed above as long as title insurance coverage is given for these matters. Buyer understands, however, that no limitation on Buyer's title prohibits construction of the Dwelling Unit, or the use of it as a residence, subject to the Homeowners’ Documents including, but not limited to, the Covenants, If at least thirty (0) days prior to closing, Buyer objects to the title company Seller has selected and if Buyer is obtaining financing with the assistance of a federally related merigage loan, Seller will instead give Buyer a credit for the promulgated rate established by the Florida Insurance Commissioner for such tile commitment (taking into account any available re-issue credits). in any event, Seller shail not be required to deliver an abstract of title. b. A special warranty deed. At closing, Seller promises to give Buyer a special warranty deed to the Dwelling Unit, subject to the permitted exceptions listed above. Buyer will also receive the following documents at closing: 1) a Bill of Sale for any appliances included in the Dwelling Unit, 2) Seller's form of Owner's (“no lien”) Affidavit, 3) FIRPTA {non-foreign) affidavit, and 4) ..Acknowledgment, Receipt and Compliance Agreement prepared by Seller's counsel. When Buyer receives the special warranty deed at closing, Buyer will sign all papers that Seller and or its counsel deems necessary or appropriate. Title, for all purposes, shail be deemed good, marketable and insurable if Seller is able to deliver an owner's title insurance policy for the Dwelling Unit subject only to the permitted exceptions set forth herein. if Seller cannct provide the quality of title described above, Seller will have a reasonable period of time (at least sixty (60) days) to correct any defects in title, but Seller is not obligated to do so. If Seller cannot or elects not to correct the title defects, ~- "=. Buyer will have two options: (a) Buyer can accept title in the condition Seller offers it without any reduction in the Total Purchase Price, or (b) Buyer or Seiler can cancel this Agreement and Buyer will receive a full refund of his - deposits. Seller will be relieved of all obligations under this Agreement when Seller refunds the deposits to Buyer. At the same time Buyer receives the special warranty deed, Buyer agrees to pay the balance of the Total Purchase Price and any additional amounts owed under this Agreement. Until all sums have been received and cleared, Seller will be entitled to a vendor's lien on the Dwelling Unit (which Buyer will grant to Seller in writing at closing at Seller's request). 14, Additional Expenses. Buyer understands that, in addition to the Total Purchase Price for the Dwelling Unit, Buyer must pay certain additional expenses, fees and costs when title is delivered to Buyer at closing. These include: 4 NE ‘Smacview Contract ALiNihie DALE UAE RAEN Page 6 of 14 a. A “Developer Reimbursement Charge” equal to one and one half percent (1.50%) of the Total Purchase Price (and of any charges for options or extras now or hereafter contracted for which are not included in the Purchase Price). This charge will be used to pay for the following closing costs: (j} the costs of officially tecording the deed (currently, recording fees are $10.00 for the first page of an instrument and $8.50 for each additional page); (ji) for documentary stamp taxes (presently, documentary stamp taxes are $.70 for each $100.00 of consideration); (iti) for the premium on the owner's title insurance policy, at the minimum promulgated risk rates Promulgated by the Florida Insurance Commissioner (taking into account applicable reissue rates and new home credits, if any), whether obtained from Developer's closing agent, or elsewhere; and (iv) to pay or to reimburse Seller for various out-of-pocket, administrative and other internal costs and expenses incurred in connection with development and construction of the Community, and the sale of the Units, including Seller's attorneys’ fees and various impact and permit fees incurred by Seller other than those expenses referred to in subparagraph (e) below. In the event of increases in either the recording fees imposed by the County, the documentary stamp tax rates or the minimum risk title insurance premiums, subsequent to the date of this Agreement, or in the event of the imposition of any surcharge or any new governmental tax or charge on deeds or conveyances, Buyer further agrees to pay all such increases, surcharges or new taxes or charges. Buyer acknowledges and agrees that the “Developer Reimbursement Charge’ is not for payment or reimbursement of clasing costs or setilement services (other than to the extent expressly provided above). The foregoing one and one half percent (1.50%) “Developer Reimbursement Charge” is based on the assumption that documentary stamp taxes on the special warranty deed will be, at closing, at the rate of $.70 for each $100.00 of Purchase Price, and that the cost of title insurance will be based, at closing, on the minirnum rates promulgated by the Florida Insurance Commissioner as of January 1, 1999. In the event of changes in either or both of the foregoing, or any new governmental tax or charge on deeds or conveyances, appropriate additional charges {in the case of increases) or credits {in the case of decreases) will be paid by or credited to Buyer at closing. b, Loan fees, closing costs, escrows, appraisal fees, credit report fees, lender's title insurance premiums, prepayments and all other expenses charged by any lender or mortgage broker {if any) giving Buyer a mortgage, if applicable. c The Sonoma Bay Community Homeowners Association, Inc. {the “Association”) assessments/charges against the Unit for common expenses, prorated from the date of closing to the first day of the next succeeding assessment period; and a prepayment of the immediately following monthly or quarterly assessment; the same prorations and prepayments shall be made with respect to the Association's assessments against the Dwelling Unit. d. Initial capital contributions in an amount equal to two (2) months assessments/charges for the Dwelling Unit due to the Association, as determined at the time of closing. These charges will not be regarded as prepayments of such assessments/charges, or otherwise credited against such regular assessments/ charges, but shail be payable directly to the Association and may be used to pay any deficits of the Association. ae A reimbursement to Seller for any utility, cable, satellite or interactive communication deposits or hook-up fees which Seller may have advanced prior to closing for the Dwelling Unit, other than any such charges which are the responsibility of the Association. The amount of this charge is now unknown. f. Accharge of $25.00 for title examination and $25.00 for a computer update and re-certification of title to the Dwelling Unit. g. Reimbursement to Seller, and/or Seller's closing agents, for charges incurred in connection with coordinating closing with Buyer and/or Buyer’s lender, including, without limitation, charges for messenger expenses, long distance telephone calls, photocopying expenses, telecopying charges and others. The amount of these charges is now unknown. Additionally, if Buyer obtains a loan and elects to have Seller's closing agent act as “loan” closing agent as well, Buyer agrees to pay such closing agent, in addition to any other sums described in this Agreement, an aggregate sum equal to $600.00, for the title examination, title searching and closing services related to its acting as “loan closing agent,” plus any sums necessary for reimbursement of actual costs incurred and any premiums required (at promulgated rate) for any title endorsements, and for the cost of couriers, ovemight delivery services, photocopies, long distance telephone and facsimile charges and any other expenses incurred in connection therewith. The amount of these charges is now unknown. h. Any charge for any options or upgrading of standard items included, or to be included, in and/or with the Dwelling Unit as agreed to in writing by both Buyer and Seller, if not previously paid. i. The late funding charges specified in paragraphs 2, 3 and 11, if applicable. The amount of any such charges is now unknown, j. The “interest Charge” described in page 1 of this Agreement, if Buyer does not waive its right to have its deposit (up to ten percent (10%) of the Total Purchase Price) placed in an escrow account and/or any bond premium as described in paragraph 2, if applicable. Current expenses of the Dwelling Unit {for example, taxes and govemment assessments and current *““monthly assessments of the Association) will be adjusted between Buyer and Seller at closing as described in the closing statement. The amount of this proration is now unknown. In addition, at closing, Buyer shall prepay the next month’s assessments to the Association. If real estate taxes for the year of closing will be or have been assessed in the aggregate on the Community rather than on a home-by-home basis, Seller will pay those taxes in full, but Buyer will pay to Seller at closing the Dwelling Unit's allocable share, prorated from the scheduled date of closing, of those taxes (if the taxes are then known), or the Dwelling Unit's allocable share (so prorated) of Seller's estimate of those taxes (if the taxes are not then known), subject te readjustment at Seller's or Buyer's request when the actual tax bill is received. This subparagraph shall survive (continue to be effective after} closing. If Seller determines taxes for the year of closing will be or have been assessed on a home-by-home basis, Buyer will be responsible for paying the tax bill on the Dwelling Unit in full and Seller will reimburse Buyer for the prorata share of those taxes, based on the maximum discount available, determined as of the scheduled closing date. Seller will not be obligated to pay its share of those taxes to Buyer, however, until Buyer presents to Seller the actual tax bill for the Dwelling Unit. ‘Smacview Contract Page 7 of 14 ADMINISTRATIVE COMPLAINT , EXHIBIT # l a ae | OF PAGE oc cnn « ak asin ss Notwithstanding the foregoing, if a separate tax bill for the Dwelling Unit has been issued for the year of closing, then at the closing, taxes for the Dwelling Unit will be prorated based upon such tax bill. This subparagraph shall survive (continue to be effective after) closing. 15. Adjustments with the Association. Buyer understands that Seller may have to advance money to or for the Association to permit it to pay for certain of initial expenses (for example, but without limitation, insurance Premiums, Common Area utility charges and deposits, permit and license fees, charges for elevator and other service contracts, salaries of Association employees and other similar expenses). Seller is entitled to be reimbursed by the Association for all of these sums advanced by it. The Association may reimburse Seller out of assessments paid by Buyer and other unit owners as those assessments are collected at a later date, or by way of a credit against any obligation Seller may have to pay to the Association, at Seller's election. 16. Default. It Buyer fails to honor any of Buyer's promises or tc perform any of Buyer's obligations under this Agreement (including making scheduled deposits and other payments), Buyer will be in "default", If Buyer is still in default five (5) days after Seller sends him notice of it, Seller can cancel this Agreement. If, however, Buyer's default is in failing to close on the scheduled date, Seller can cancel this Agreement upon written notice to Buyer without giving Buyer any prior (or subsequent) notification or opportunity to close at a later jate. Upon Buyer's default (and the expiration of any cure peried, if any), all of Buyer's rights under this Agreement will end and Seiler may resell or hold the Dwelling Unit without any accounting or further notification to Buyer. Buyer understands that because Seller has taken the Dwelling Unit off the market, has spent money on sales, advertising, promotion and construction and has incurred other costs incident to this sale, that Buyer's default will damage Seller. As compensation for this damage, in the event Seller cancels this Agreement because of a default by Buyer, Buyer authorizes Seller to keep (or if not then paid by Buyer, Buyer will pay to Seller) all deposits then made or payable, and other pre-closing advance payments including, without timitation, those on aptions, extras, upgrades and the like) all as liquidated damages (and not as a penalty), and for Seller to instruct Escrow Agent to release any such deposits and deliver them directly to Seller. Buyer and Seller agree to this measure of damages because there is no other precise method of determining Seller's damage. If Buyer defaults and except as maybe provided below, Buyer promises not to sue for the return of any part of his deposits or other payments, Any damage or loss that occurs to the Dwelling Unit while Buyer is in default will not affect Seller's rights arising from such default. The remedies afforded Seller in this paragraph shall constitute Seller's sole and exclusive remedies. Buyer will give Seller twenty (20) days‘ written notice of any default by Seller under this Agreement, and if Seller does not thereafter cure the default within such twenty (20) day period (unless such default cannot be cured within such twenty (20) day period in which case Seller shail have such additional time as may be necessary to cure the default so long as Seller is diligently attempting to cure same and provided further that the foregoing shalt not apply to nor be deemed to extend Seller's absclute obligation to complete and to deliver the Dwelling Unit to Buyer within the time periad required under paragraph 8 of the Agreement from the date ot execution of this Agreement). if Seller has not cured the default within such period, Buyer, as its sole remedies, shall have the right to receive a tetur of its deposits (to the extent made by Buyer) and to seek any actual (but not consequential) damages against Seller. Notwithstanding the foregoing, in the event the default is due to the Seller's failure to complete the Dwelling Unit within the time period required under paragraph 8 of this Agreement, Seller shall not be entitled to the curative period described above and Buyer may pursue all such other remedies as may be available to Buyer at law or in equity, including specific performance of Seller's completion obligation. Without limiting the generality of paragraph 33 of this Agreement, this paragraph 15 will survive (continue to be effective after) closing. 17. Litigation. The prevailing party in any suit or other proceeding brought by either Buyer or Seller with respect to this Agreement will be entitled to recovery of its reasonable attorneys’ fees and costs incurred in such suit or proceeding or in any appeal thereof. Without limiting the generality of paragraph 33 of this Agreement, this paragraph 16 will survive (continue to be effective after) any termination or cancellation of this Agreement prior to closing. 18, Maintenance Fees. Buyer understands that the Estimated Operating Budget (the "Budget'} provides only an estimate of what it will cost to run the Assaciation during the period of time stated in the Budget. Neither the monthly assessments for the Dwelling Unit payable to the Association shown in the Budget, nor the level of assessments payable to the Association, are guaranteed, nor the Association may make changes in its applicable Budget at any time to cover increases or decreases in actual expenses or estimates. Without limiting the generality of paragraph 26 of this Agreement, those changes will not give Buyer any right to cancel this Agreement. 19. Seller's Use of the Community. As long as Seller owns a Dwelling Unit, or any other portion of the Community, Seller and its affiliates, invitees, licensees, contractors and subcontractors (collectively, “Permitees"), can keep offices and models within the Community. Seller ard its Permitees may show these Dwelling Units, erect advertising signs and do whatever is necessary, in Seller's opinion to help sell or lease the Dwelling Units or develop, manage, service or repair any portion of the Dwelling Unit and the Community, but Seller's use of the Dwelling Unit within the Community must be reasonable, in Seller's opinion, and cannot unreasonably interfere, in Seller's opinion, with Buyer's use and enjoyment of the Dwelling Unit. ., SELLER AND ITS AFFILIATES WILL BE CONDUCTING CONSTRUCTION AND OTHER ACTIVITIES WITHIN OR AROUND THE COMMUNITY, BOTH BEFORE AND AFTER BUYER CLOSES UNDER THIS AGREEMENT. BUYER RECOGNIZES THEIR RIGHTS TO DO SO AND WILL NOT (!} DEEM ANY OF THESE ACTIVITIES TO BE NUISANCES OR NOXIOUS OR OFFENSIVE ACTIVITIES, (Il} ENTER, OR ALLOW ANY OTHERS UNDER BUYER'S CONTROL TO ENTER ANY AREAS WHERE SUCH ACTIVITIES ARE BEING CONDUCTED (EVEN WHEN THEY HAVE TEMPORARILY CEASED, SUCH AS DURING NON-WORKING HOURS) OR {III} HOLD SELLER OR ITS AFFILIATES, OR BOTH OF THEM, LIABLE OR SUE SELLER AND/OR ITS AFFILIATES FOR ANY DAMAGE OR INJURY ARISING FROM OR CONNECTED WITH ANY OF THE ACTIVITIES DESCRIBED ABOVE. “Affiliate”, for the purposes of this Agreement, means a person or entity which (either directly or indirectly, through one or more intermediaries) controls, is in commen control with or is controlled by, another person or entity, and any person or entity that is a director, trustee, officer, employee, agent, partner, shareholder, subsidiary or Smacview Contract wal NISTR AT We COMPLAINT Page 8 of 14 AD Buyer(s) initials MHI rae EXHIBIT # en - ES PAGE OF i og ate PAGE 2 Z x. attomey of any of the foregoing. For the purposes of this definition, the term “control” means (a) legal or beneficial ownership of tan percent (10%) or more of the voting interests of an entity or (b) the possession, directly or indirectly, of the power to direct or cause the direction of the management or policies of a person or entity, whether through the ownership of voting securities, by contract or otherwise. Without limiting the generality of paragraph 33 of this Agreement, this paragraph 18 will survive (continue to be effective after) closing. 20, Sales Gommissions. Seller wil! pay all sales commissions due its in-house sales personnel and to the co-broker, if any, listed on page 1 of this Agreement (if the space on page 1 for a co-broker is left blank, it shall mean that Seller has not agreed to pay any co-broker). Seller has no responsibility to pay any sales commissions to any other broker or sales agent with whom Buyer has dealt (except as specifically named herein and then only as Seiler has agreed in writing). Buyer will be solely tesponsible to pay any such brokers. By signing this Agreement, Buyer is representing and warranting to Seller and Seller is relying on said representation and warranty, that Buyer has net consulted or deait with any other broker, salesperson, agent or finder other than Seller's sales personnel (and the co-broker, if any, named in page 1 of this Agreement) and that Buyer will indemnify and hold Seller harmless for and trom any such person or company claiming otherwise. Buyer's indemnity and agreement to hold Seller harmless. includes, without limitation, Buyer's obligation to pay or reimburse Seller for all commissions, damages, and other sums for which Seller may be held liable and all attomeys' fees and costs actually incurred by Seller (including those for appeals), regardless of whether a lawsuit(s) is actually brought or whether Seller ultimately wins or loses. Buyer understands and agrees that Sellers in-house sales personnel are agents of Seller only (and is not Buyer's agents and/or dual agents). As Seller's agents, they owe the following duties: (i) to Seller, a fiduciary duty to represent the interests of, and use utmost care, integrity, honesty and loyalty to, Seller, and (ii) to both Buyer and Seller, the duty to diligently exercise reasonable skill and care in Performance of the agent's duties, a duty of honasty and fair dealing and good faith, and a duty to disclose all facts known to the agent materiaily affecting the value or desirability of property that are not known to, or within the diligent attention and observation of the parties. Seller's agents are not obligated to reveal to either party any confidential information obtained from the other party which does not involve the affirmative duties of the agent(s) set forth in this paragraph Without limiting the generality of paragraph 33 of this Agreement, this paragraph 19 will survive (continue to be effective after) closing. 21. Notices. Whenever Buyer is required or desires ta give notice to Seller, the notice must be in writing and it must be sent by certified mail, postage prepaid, with a return receipt requested to Seller and addressed as follows: Smacview, Inc., 1440 Coral Ridge #272 Coral Springs, Fi, 38071. Copies of all notices to Seller shail also be sent to the Escrow Agent, COUNTYLINE LAND TITLE GROUP, 603 Hollywood Blvd, Hollywood, Fl, 33024, or at such other addresses as Seller may otherwise direct. Unless this Agreement states other methods of giving notices, whenever Seller is required or desires to notify Buyer, the notice must be given either in person, by telephone or in writing and, if in writing, it must be sent either by: (]) certified mail, postage prepaid, with a return receipt requested (unless sent outside of the United States, in which event written notices to Buyer may be sent by regular air mail); (ii) facsimile transmission if Buyer has indicated a telecopy number on Page 1 of this Agreement or (ii) a recognized overnight courier service (.e., Federal Express, Express Mail, Emory, Purolator, United Parcel Service, etc.), to the address for Buyer set forth on Page 1 of the Agreement. Alternatively, if Buyer is represented by counsel, Seller may instead send any notices only to Buyer's counsel. Acchange of address notice is effective when itis received. All other written notices are effective on the day they are properly sent (and all permitted non-written notices to Buyer are effective on the date given by Seiler), whether or not received, unless receipt is required specifically in portions of this Agreement. 22, Transfer or Assignment. Buyer has no right to assign, sell or transfer his interest in this Agreement or its rights hereunder without the prior express written consent of Seller, which may be unreasonably withheld by Seller with or without cause. To the extent that Seller consents to any such assignment, said consent may be conditioned in any manner whatsoever, including, without limitation, charging an assignment or transfer fee. Any assignee must fully assume alll of the obligations of Buyer hereunder by written agreement for Seller's benefit, in form and content acceptable to Seller, a counterpart original executed copy of which shall be delivered to Seller. Without limiting the generality of the foregoing, Buyer shail not, prior to closing, list the Unit for resale with a broker or allow the Unit to be listed on any multiple listing service for resale. if Buyer is a corporation, partnership, limited liability company, other business entity, trustee or nominee, a transfer (whether voluntary, involuntary, by operation of law or otherwise) of any stock, partnership interest, membership interest, equity, beneficial or principal interest in Buyer or a change in the control of Buyer or a merger or consolidation or other business combination involving Buyer will constitute an assignment of this Agreement requiring consent. Without limiting the generality of the foregoing, Buyer shall not, prior to closing on title to the Dwelling Unit, without obtaining the prior written consent of Seller (which may be granted or withheld in Seller's sole and absolute discretion) advertise, market and/or list the Unit for sale or resale, whether by placing an advertisement, listing the Unit with a broker, allowing the Unit to be listed on the Multiple Listing Service or otherwise. Any violation of the foregoing shall be deemed an immediate and uncurable default by Buyer under this Agreement. Seller may assign or transfer freely any or all of its rights and obligations under this Agreement (including its tights in and to Buyer's deposits and all other payments made by Buyer), to any affiliated or nonaffiliated party, or te any lender providing financing for all or any portion of the Dwelling Unit, the Community and/or the surrounding properties. . 23, Limitation of Sales. Seller reserves the right to limit the sale of homes in the Community and to refuse, in its sole discretion, to sell more than one home to any buyer or to any group of affiliated buyers. 24, Others Bound by this Agreement. If Buyer dies or in any way loses legal control of his affairs, this Agreement will bind his heirs and personal representatives. If Buyer has received permission to assign or transfer his interest in this Agreement, this Agreement will bind anyone receiving such interest. If Buyer is a corporation or business entity, this Agreement will bind any successor corporation or entity 25. Public Records. Buyer authorizes Seller to record the documents needed to establish and operate Smacviow Gortrac BUMS TWALIVE CONIPLALNT Page 9 of 14 EXMIBIT # | Buyers) inet LZ ___ Date- PAGE OF far (3 the Community, as well as all other documents, which Seller deems necessary or appropriate, in the Public Records of Broward County, Florida. Neither this Agreement nor any notice or memorandum hereof (nor any Lis Pendens, except to the extent permitted under paragraph 15 herein). 26. Florida Law, Venue; Severability. Any disputes that arise or develop under this Agreement will be settled according to Florida law. Buyer and Seller agree that venue is proper in Miami-Dade County, Florida. Hany part of this Agreement vioiates a provision of law, the law will control, In such case, however, the rest of the Agreement (not in violation) will remain in force. Without limiting the generality of the foregoing, it is Seller's and Buyer's mutual desire and intention that all Provisions of this Agreement be given full effect and be enforceable strictly in accordance with their terms. If, however, any part of this Agreement is not enforceable in accordance with its terms or would render ather parts of this Agreement or this Agreement, in its entirety, unenforceable, the unenforceable part or parts are to be judicially Modified, if at all possible, to come as close as possible to the expressed intent of such part or parts (and still be enforceable without jeopardy to other parts of this Agreement, or this Agreement in its entirety), and then are to be enforced as so modified. if the unenforceable part or parts cannot be so modified, such part or parts will be unenforceable and considered null and void in order that the mutual paramount goal (that this Agreement is to be enforced to the maximum extent possible strictly in accordance with its terms) can be achieved. Without limiting the generality of the foregoing, if the mere inclusion in this Agreement of language granting to Seller certain rights and powers, or waiving or limiting any of Buyer’s rights or powers or Seller's obligations (which otherwise would be applicable in the absence of such language), results in a final conclusion (after giving effect to the above judicial modification, if possible) that Buyer has the right to cance! this Agreement and receive a refund of his deposits, such offending rights, powers, limitations and/or waivers shall be struck, canceled, rendered unenforceable, ineffective and null and void. Under no circumstances shall either Buyer or Seller have the right to cancel this Agreement soiely by reason of the inclusion of certain language in this Agreement (other than language which is Intended specifically to create such a cancellation right). The following sentence will supersede and take precedence over anything else in this Agreement which is in conflict with it, if any provisions serve to: (1) limit or qualify Seller's obligation to complete the Dwelling Unit in the time required in paragraph 8 hereof, or (2) limit Buyer’s remedies in the event that such obligation is breached, or (3) grant Seller an impermissible grace period, and such limitations or qualifications are not permitted for this sale to qualify for the “Improved Lots” exemption under the Interstate Land Sales Full Disclosure Act, pursuant to 15 U.S.C. 1702(a)(2), then any such provisions are hereby stricken and made null and void as if never a part of this Agreement. 27. Changes. Seller may, in its sole and absolute discretion, make any and all changes in the Homeowners’ Documents as it, govemmental authorities having jurisdiction thereof, title insurance companies, or mortgage lenders require or deem necessary or appropriate. Without limiting the generality of paragraph 33 below, this paragraph 26 will survive (continue to be effective after) closing. 28. ° Time of Essence. The performance of all obligations by Buyer on the precise times stated in this Agreement is of absolute importance and failure to so perform on time is a default, time being of the essence. 29. Joint Obligation, If more than one person signs this Agreement as Buyer, each will be equally liable for full performance of all Buyer's duties and obligations under it and Seller can enforce it against either as individuals or together. 30. Disclaimer of Implied Warranties. Specimen copies of any manufacturers' warranties received by Seller will be passed through to Buyer at closing and are not expressly warranted by Seller. As a specific inducement to Seller to execute this Agreement, Buyer acknowledges that Seller, its employees, agents, brokers and other representatives have made no additional warranty, representation, guarantee or promise of any kind, express or implied, including, that the warranties described herein shall be in lieu of any other warranty, express or implied, including but not limited to, any implied warranty of merchantability, habitability, and/or quality or fitness for a particular purpose, and that except as provided herein, Buyer is buying and shail accept possession of the Dwelling Unit in the condition it js in at the time of Buyer's inspection thereof, subject to those itams which Seller agrees to correct by so indicating on the inspection statement. Seller shall have no further liability or obligation whatsoever with respect to the Dwelling Unit or the condition or construction thereof, or any occurrence directly or indirectly arising therefrom. To the maximum extent lawful all implied warranties of fitness for a particular purpose, merchantability and habitability, all warranties imposed by statute and all other implied warranties of any kind or character are specifically disclaimed. Seller has not given and buyer has not relied on or bargained for any such warranties. As to any implied warranty which cannot be disclaimed entirely, all secondary, incidental and consequential damages are specifically excluded and disclaimed (claims for such secondary, incidental and consequential damages being clearly unavailable in the case of implied warranties which are disclaimed _ entirely above). Without limiting the generality of paragraph 33 below, this paragraph 29 will survive (continue to be effective after) closing. 31. Management Agreement. Buyer understands that the Association may enter into management contracts whereby certain management services are provided for by a third party management company. If the Association enters into such a contract, Buyer understands that the Association will be obligated to pay fees to the manager. Buyer also recognizes that the manager may have other business relationships with Seller and that people Seller appoints will serve on the Board of Directors of the Association (and may also serve on Seller's Board), but Buyer dogs not find these facts objectionable. Without limiting the generality of paragraph 33 below, the provisions of this paragraph 30 will survive (continue to be effective after) closing. 32. Return of Homeowners’ Documents. If this Agreement is canceled for any reason, Buyer will return Smacview Contract Page 10 of 14 cota a ooo aa be # 3 eS to Seller all of the Homeowners’ Documents delivered to him in the same condition received, reasonable wear and tear excepted. If Buyer fails to return the Homeowners’ Documents, Buyer agrees io pay Seller $50.00 to defray the Cost of preparation, printing and delivery, which sums Seller may deduct from any deposits or other sums to be retumed to Buyer. 33. Waiver, Recording, Seller's waiver of any of its rights or remedies or failure to enforce any of its rights or remedies (which can only occur if Seller waives any right or remedy in writing) will not waive any other of Seller's rights or remedies or prevent Seller from later enforcing all of Seller's rights and remedies under other circumstances. Neither this Agreement, nor any notice or memorandum hereof (nor any Lis Pendens, except to the extent permitted under paragraph 15 herein), may be recorded. Any such recordation by Buyer will be an immediate default, upon which Seller may, in Seller’s sole discretion, cancel this Agreement without notice to Buyer. Seller shail have no obligation to grant any grace period or other right to cure, in such event. 34. Survival. Only those provisions and disclaimers in this Agreement, which specifically state that they shall be in effect after closing, will survive (continue to be effective after) closing and delivery of the deed. All ather Provisions shail be deemed merged into the deed. 35. Substantial Completion. Whenever this Agreement requires Seller to complete or substantially complete an item of construction, that item will be understood to be compiete or substantially complete upon the issuance of a temporary or final Certificate of Use and Occupancy or Certificate of Completion by the City of North Lauderdale or any other applicable governmental agency. Notwithstanding the foregoing, however, the Dwelling Unit will not be considered complete or substantially complete for purposes of this Agreement unless the Dwelling Unitis physically habitable and usable for the purpose for which the Dwelling Unit was purchased. The Dwelling Unit will be considered so usable if it is ready for occupancy and has ail necessary and customary utilities extended to it, and available for service to be initiated by Buyer. 36. Risk of Loss. If the improvements constituting or within the Community are damaged by fire or other casualty before delivery of the Special Warranty Deed, Seller shall restore the improvements and the closing date hereunder shall be extended, if necessary, provided that the foregoing shall not apply to nor be deemed to extend Seller's absolute obligation to complete and to deliver the Unit to Buyer within the time period required under paragraph 8 of this Agreement. 37. Local Agent. If requested by Seller, Buyer agrees to deliver to Seller, within forty-five (45) days of the date of this Agreement, an executed designation of an individual qualified to accapt service of process in the State of Florida, which designation shall be irrevocable during the period this Agreement unless Buyer effectively appoints a substitute local agent and notified Seller of such substituted designation. 38. Buyer's Certification. Buyer hereby certifies, under penalties of perjury, that the taxpayer's identification or social security number for Buyer as set forth on page 1 hereof is correct, and understands that failure to provide the correct taxpayer's identification or social security number, as required by law, may subject Buyer to civil or criminal penalties. 39. _ Incorporation; Definitions. The explanations, definitions, disclaimers and other provisions set forth in the Homeowners’ Decuments are incorporated into this Agreement as if repeated at jength here. When the words “this Agreement" are used, they shall include in their meaning ail modifications, riders and addenda to it signed by Buyer and Seller. The term “force majeure” as used in this Agreement, shall mean “Acts of God", labor disputes (whether lawfut or not), material or labor shortages, restrictions by any governmental or utility authority, civil riots, floods or other causes beyond a party's control. 40. Seller's Opinion/Discretion. Except as specifically provided to the contrary in this Agreement, wherever this Agreement requires or permits Seller's opinion or discretion (or words of similar import) to govern any matter, Seller will not be permitted, for purposes of this Agreement, to form an opinion which is entirely unreasonable, ner to exercise its discretion in an entirely unreasonable manner. However, if any such opinion or exercise of discretion is not entirely unreasonable, it will control for purposes of this Agreement. Without limiting the generality of the foregoing, wherever this Agreement specifically permits Seller to act in its sole discretion or to make a decision which may be unreasonable (or words of similar import), Seller's actions or decisions with respect to such matters will control for purposes of this Agreement even if unreasonable. 41. Association. This Agreement is also Buyer's application for membership in the Association which Membership shall automatically take effect at closing. At that time, Buyer agrees to accept the liabilities and obligations of membership. Buyer acknowledges receipt of and agrees to be bound by the Homeowners’ Documents, as amended and supplemented from time to time. Buyer acknowledges and agrees that title to the Dwelling Unit shall be subject to such documents. 42. Negotiation, Buyer acknowledges that (a) it has had ample opportunity to inspect other similar communities and the documents for thern, (b) Seller has clearly disclosed to Buyer its right to cancel this Agreement for any reason whatsoever (including any dissatisfaction with the provisions of this Agreement or the Governing Documents) within three (3) days following the execution of this Agreement and the delivery of the Goveming Documents and any amendments thereto, and (c) that although Seller's sales agents are not authorized to change the form of this Agreement, they have strict instructions from Seller te communicate any of Buyer's requests for changes to Seller's management, which has given Buyer the opportunity to discuss and negotiate such changes. In light of the foragoing, subject to Buyer's right to reconsider and cancel this Agreement within the three (3) day period described elsewhere in this Agreement, Buyer's decision to sign this Agreement now is totally free and voluntary and if Buyer fails to exercise its right to cancel as stated above, that will mean that it acknowledges and accepts ail of the provisions of the Agreement and the Governing Documents as fair, reasonable, negotiated, discussed and explained to its satisfaction. Furthermore, notwithstanding the fact that the form of this Agreement has been drafted, initially, by Seller, because this Agreementis a negotiated arm's tength agreement, the principle of contract interpretation which would result in any ambiguity being construed against the draftsman shall not, and is not intended, to apply. 43, Seller's Representations. Buyer acknowledges warrants, represents and agrees that this Agreement is being entered into by Buyer without reliance upon any representations concerning any potential for future profit, any rental income potential, tax advantages, depreciation or investment potential or any monetary or financial advantage. Buyer acknowledges and agrees that no such representations, including representations as to the ability or willingness of Seller or its affiliates to assist Buyer in renting or selling the Dwelling Unit, have been made by Smacview Contract : si HATIVE COMPLAINT Page 11 of 14 #. l Buyer(s) Initials Te ce ecnane nam re ges —— Eee PA anc A be, 23) Seller, or any of its agents, employees or representatives. This Agreement contains the entire understanding between Buyer and Seller, and Buyer hereby acknowledges that the displays, architectural models, artist renderings and other promotional materials contained in the sales office and model properties are for promotional purposes only and may not be relied upon. All descriptions of the locations, areas, capacities, and sizes of all or any portions of the Dwelling Unit and other facilities are approximations only and are based upon architectural measurements. Buyer warrants that Buyer has not relied upon any verbal representations, advertising, portrayals or promises other than as expressly contained herein and in the Homeowners’ Decumenis, including, specifically, but without limitation, any representations as to: (a) potential appreciation in or resale value of the Dwelling Unit, (b) the existence of any “view” from the Dwelling Unit or that any existing “view” will not be obstructed in the future, (c) traffic canditions in, near or around the Community, (d) disturbance from nearby properties, (e) disturbance from air or vehicular traffic, or (f) any future use of any adjacent properties. Buyer further warrants, represents and agrees the Dwelling Unit will not be used as an investment property for resale or “flip”. The provisions of this paragraph 42 shall survive the closing. 44, Disclosures. Under the laws of the State of Florida, Buyer is hereby advised as follows: a. Radon, Radon is a naturally occurring radioactive gas that, when it has accumulated in a building in sufficient quantities, may present health risks to persons who are exposed to it over time. Leveis af radon that exceed federal and state guidelines have been found in buildings in Florida. Additional information regarding radon and radon testing may be obtained from your county public health unit. The foregoing notice is provided in order to comply with state law and is for informational purposes only. Seller does not conduct radon testing with respect to the Dwelling Unit, and specifically disclaims any and ail representations or warranties as to the absence of radon gas or radon producing conditions in connection with the Dwelling Unit. b. Property Tax Disclosure Summary: BUYER SHOULD NOT RELY ON THE SELLER'S CURRENT DWELLING UNIT TAXES AS THE AMOUNT OF DWELLING UNIT TAXES THAT THE BUYER MAY BE OBLIGATED TO PAY INTHE YEAR SUBSEQUENT TO PURCHASE. A CHANGE OF OWNERSHIP OR DWELLING UNIT IMPROVEMENTS TRIGGERS REASSESSMENTS OF THE DWELLING UNIT THAT COULD RESULT IN HIGHER DWELLING UNIT TAXES, IF YOU HAVE ANY QUESTIONS CONCERNING VALUATION, CONTACT THE COUNTY DWELLING UNIT APPRAISER'S OFFICE FOR INFORMATION. C Section 558,005, Florida Statutes. FLORIDA STATUTES CONTAINS !MPORTANT REQUIREMENTS YOU MUST FOLLOW BEFORE YOU MAY BRING ANY LEGAL ACTION FOR ANALLEGED CONSTRUCTION DEFECT IN YOUR UNIT OR CONDOMINIUM. SIXTY DAYS BEFORE YOU BRING ANY LEGAL ACTION, YOU MUST DELIVER TO THE OTHER PARTY TO THIS AGREEMENT, A WRITTEN NOTICE REFERRING TO CHAPTER 558 OF ANY CONSTRUCTION CONDITIONS YOU ALLEGE ARE DEFECTIVEAND PROVIDE SUCH PERSON THE OPPORTUNITY TO INSPECT THEALLEGED CONSTRUCTION DEFECTS AND TO CONSIDER MAKING AN OFFER TO REPAIR OR PAY FOR THE ALLEGED CONSTRUCTION DEFECTS. YOU ARE NOT OBLIGATED TO ACCEPT ANY OFFER WHICH MAY BE MADE. THERE ARE STRICT DEADLINES AND PROCEDURES UNDER THIS FLORIDA LAW WHICH MUST BE MET AND FOLLOWED TO PROTECT YOUR INTERESTS. 45. _- Construction Industries Recovery Fund. PAYMENT MAY BE AVAILABLE FROM THE CONSTRUCTION INDUSTRIES RECOVERY FUND IF YOU LOSE MONEY ON A PROJECT PERFORMED UNDER CONTRACT, WHERE THE LOSS RESULTS FROM SPECIFIC VIOLATIONS OF FLORIDA LAW BY A STATE-LICENSED CONTRACTOR. FOR INFORMATION ABOUT THE RECOVERY FUND AND FILING A CLAIM, CONTACT THE FLORIDA CONSTRUCTION INDUSTRY LICENSING BOARD AT THE FOLLOWING TELEPHONE NUMBER AND ADDRESS: (850) 487-1395; CONSTRUCTION INDUSTRY LICENSING BOARD, 1940 N. MONROE STREET, TALLAHASSEE, FL 32399. 46. Flood Disclaimer. Buyer acknowledges and agrees that portions of the Community, including without limitation, the parking areas may be located below the federal flood plain, and, accordingly, in the event of flooding, any personal property stored therein is susceptible to water damage. Additionally, insurance rates for the Association insuring the Common Areas and other portions of the Community may be higher than if those portions of the Community were above the federal flood plain. By acquiring title to, or taking possession of, a dwelling unit, or accepting the assignment of a parking space, if any, Buyer, for himself and its tenants, guests and invitees, hereby expressly assumes any responsibility for loss, damage or liability resulting therefrom. The provisions of this paragraph shall survive the closing. 47, Mold Disclaimer. Mold is found both indoors and outdcors, The presence of mold may cause Owelling Unit damage or health problems. Additional information regarding mold and a mold inspection may be obtained from your county public health unit or a professional trained in that field. The foregoing notice is provided in order to comply with state law and is for informational purposes only. Seller does not conduct mold inspection with respect to the Residences, and specifically disclaims any and all representations or warranties as to the absence of mold in connection with the Residences. 48. Previous Occupancy. The Dwelling Unit has not been previously occupied. 49, Waiver ot Jury Trial. Seller and Buyer agree that neither Seller, Buyer, nor any assignee, Successor, heir, or legal representative of Seller or Buyer (all of whom are hereinafter referred to as the “parties”) shail seek a jury trial in any lawsuit, proceedings, counterclaim, or any other litigation procedure based upon or arising out of this Agreement, the Homeowners Documents, any rules or regulations of the Association, or any instrument evidencing or relating to any of the foregoing, or any actions, dealings or relationship between or among the parties, or any of them. None of the parties will seek to consolidate any such action, in which a jury trial has been waived, with any other action in which a jury trial has not been waived. The provisions of this paragraph have been fully negotiated by the parties and these provisions shail be subject to no exceptions. Seiler has in no way agreed that the provisions of this paragraph will not be fully enforced in ail instances. 50. Disclaimers. No representations or warranties of any kind, express or implied, have been given or made by Seller or its agents or employees, unless expressly set forth in this Agreement or any of the Homeowners’ Documents delivered by Seller prior to the execution hereof by Buyer and, without limiting the generality of paragraph 29 herein, the Seller hereby specifically disclaims any liability or responsibility Smacview Contract DBE AE IVEL GUivere ta i Page 12cf 14 a e/a 13 F geod le OF for the following: (a) any matters relating to the views, designs, security and privacy of the Dwelling Units and other portions of the Community and the design, height and density of the surrounding properties; (b) the compliance with applicable law, the prevention of tortuous activities, the security, health, safety or welfare of any owner, occupant or user of any portion of the Community, without limitation, Owners and their families, guests, invitees, agents, servants, contractors or subcontractors; (c) the physical candition, zoning, compliance with applicable law, merchantability, habitability, fitness for a Particular purpose of any Portion of the Common Areas, other portions of the Community, including (without limitation) the sale, operation, level or cost of maintenance, taxes or requlation thereof; (d) bowing and/or deflection of materials, and cracking and settlement of improvements, which Buyer recognizes and agrees is typical in the type of improvements in the Community; (e) molds, mildew, toxins and fungi which, given the climate and humid conditions in South Florida, may exist and/or develop within the Dweiling Units, and/or other portions of the Community. Buyer acknowledges that certain molds, mildew, toxins and/or fungi may be, or if allowed to remain for a sufficient period may become, toxic and potentially pose a health risk; (f) noise, music, vibrations, odors, commotion and other unpleasant effects of nearby construction activity, and emanating from the development of the Community which may create disturbances impede the use of Portions of the Community; (g) acts of God and uncontrollable events and, given the location of the Community, the exposure to the potential damages from flooding and from hurricanes, including (without limitation), damages from storm surges and wind-driven rain. Buyer acknowledges that portions of the Community are located may be below the federal flood plain, and, accordingly, in the event of flooding, any property therein is susceptible to water damage. Buyer, by accepting and acquiring title to the Dwelling Unit, and each other person having an interest in or lien upon, or making any use of, any portion of the Community (by virtue of accepting such interest or lien or making such uses), shall be bound by this paragraph, shall be deemed to have assumed the risks associated with each of the above matters and occurrences and shall be deemed to have automatically waived (to the maximum extent permitted by applicable law) any and ail rights, claims, demands and causes of action against the Seller arising from or connected with any matter for which the liability of the aforementioned parties has been disclaimed in this paragraph. As to such warranties which cannot be disclaimed, and to other claims, if any, which can be made as to the aforesaid matters, all incidental, special, punitive and consequential damages arising therefrom are hereby disclaimed. Buyer, by virtue of acceptance of title to the Unit shail be deemed to have automatically waived all of the aforesaid disclaimed warranties and incidental and consequential damages. As used in this paragraph, references to Seller shall include within their meaning its members, partners, and its shareholders, directors, officers, board members, employees, agents, contractors, subcontractors, and its successors and assigns. 51. English Lanquage. Buyer acknowledges that this Agreement was negotiated in the English language. 52, Gender, Certain references used in this Agreement contained terms masculine/feminine and were used for convenience and such references shall be deemed to apply in the masculine/feminine/neuter where the text of this Agreement requires. 53. Nearby Construction. Buyer understands and agrees that for some time in the future Buyer may be disturbed by the noise, commotion and other unpleasant effects of nearby construction activity and impeded in using portions of the Community by that activity. Buyer further understands and agrees that the various portions of the Community may be developed by various developers, and, accordingly, there is no assurance as to what, if anything, will be constructed within other parts of the Community. Because of the size of the planned development and the time it will take to develop it completely, great flexibility has been reserved as to what, if anything, will be construct. Except to the extent this Agreement specifically and explicitly provide otherwise, Seller and its affiliates will have no obligation (other than that imposed by governmental authorities) to build (or to assure in any manner construction of) any particular buildings or facilities or to build (or to assure in any manner construction of) what is built in any particular way and where and will it be constructed. 54, Entire Agreement. This Agreement is the entire contract for sale and purchase of the Dwelling Unit and once it is signed, it can only be amended by a written instrument signed by both Buyer and Seller which Specifically states that it is amending this Agreement. Any current or prior agreements, representations, understandings or oral statements of sales representatives or others, if not expressed in this Agreement, the Homeowners Documents or in brochures for Sonoma Bay, are void and have no effect. Buyer has not relied on them. 55, Disclosure Summary. The terms and conditions of the Homeowners’ Documents are incorporated by reference into this Agreement. IF THE DISCLOSURE SUMMARY REQUIRED BY SECTION 720.401, FLORIDA STATUTES, HAS NOT BEEN PROVIDED TO THE PROSPECTIVE BUYER BEFORE EXECUTING THIS CONTRACT FOR SALE, THIS CONTRACT IS VOIDABLE BY BUYER BY DELIVERING TO SELLER OR SELLER'S AGENT WRITTEN NOTICE OF THE BUYER'S INTENTION TO CANCEL WITHIN 3 DAYS AFTER RECEIPT OF THE DISCLOSURE SUMMARY OR PRIOR TO CLOSING, WHICHEVER OCCURS FIRST. ANY PURPORTED WAIVER OF THIS VOIDABILITY RIGHT HAS NO EFFECT. BUYER'S RIGHT TO VOID THIS CONTRACT SHALL TERMINATE AT CLOSING. THE DISCLOSURE SUMMARY REQUIRED BY SECTION 720.401, FLORIDA STATUTES PROVIDES: DISCLOSURE SUMMARY (Pursuant to Section 720.401 of Florida Statutes) 1. AS A PURCHASER OF DWELLING UNIT IN THIS COMMUNITY, YOU WILL BE OBLIGATED TO ‘Smacview Contract mee av Wine Gad b Page 13 0f 14 EXHIBIT + | suyors) nos LZ Pace ___| OF sahi 3, PAN fn on J53 BE A MEMBER OF THE MARSH HARBOUR MAINTENANCE ASSOCIATION, INC. 2. THERE HAVE BEEN OR WILL BE RECORDED RESTRICTIVE COVENANTS GOVERNING THE USE AND OCCUPANCY OF PROPERTIES IN THIS COMMUNITY. 3. YOU WILL BE OBLIGATED TO PAY ASSESSMENTS TO THE ASSOCIATION. ASSESSMENTS. MAY BE SUBJECT TO PERIODIC CHANGE. IF APPLICABLE, THE CURRENT AMOUNT IS $452.11 PER QUARTER. YOU WILL ALSO BE OBLIGATED TO PAY ANY SPECIAL ASSESSMENTS IMPOSED BY THE ASSOCIATION. SUCH SPECIAL ASSESSMENTS MAY BE SUBJECT TO CHANGE. IF APPLICABLE, THE CURRENT AMOUNT IS $. PER : 4. YOU MAY BE OBLIGATED TO PAY SPECIAL ASSESSMENTS TO THE RESPECTIVE MUNICIPALITY, COUNTY, OR SPECIAL DISTRICT. ALL ASSESSMENTS ARE SUBJECT TO PERIODIC iE. 5. YOUR FAILURE TO PAY SPECIAL ASSESSMENTS OR ASSESSMENTS LEVIED BY A MANDATORY HOMEOWNERS’ ASSOCIATION COULD RESULT IN A LIEN ON YOUR DWELLING UNIT. 6. THERE IS NOT AN OBLIGATION TO PAY RENT OR LAND USE FEES FOR RECREATIONAL OR eaene COMMONLY USED FACILITIES AS AN OBLIGATION OF MEMBERSHIP IN THE HOMEOWNERS' ASSOCIATION. 7. THE RESTRICTIVE COVENANTS CAN BE AMENDED WITHOUT THE APPROVAL OF THE ASSOCIATION MEMBERSHIP, EXCEPT HOWEVER, PRIOR TO THE TERMINATION OF THE CLASS B CONTROL PERIOD {AS DEFINED IN THE RESTRICTIVE COVENANTS), NO AMENDMENT SHALL BE PERMITTED THAT CHANGES THE RIGHTS AND OBLIGATIONS OF THE DECLARANT (AS DEFINED IN THE RESTRICTIVE COVENANTS), UNLESS THE DECLARANT HAS FIRST CONSENTED THERETO IN WRITING. FURTHERMORE, BEFORE THE TERMINATION OF THE CLASS B CONTROL PERIOD DECLARANT MAY UNILATERALLY, ‘AND WITHOUT THE JOINDER OF ANY OTHER PARTY, MAKE OTHER AMENDMENTS TO THE RESTRICTIVE COVENANTS AS ARE MORE PARTICULARLY SET FORTH THEREIN. 8. THE STATEMENTS CONTAINED IN THIS DISCLOSURE FORM ARE ONLY SUMMARY IN NATURE, AND, AS A PROSPECTIVE PURCHASER, YOU SHOULD REFER TO THE COVENANTS AND THE ASSOCIATION'S GOVERNING DOCUMENTS BEFORE PURCHASING A DWELLING UNIT. 9. THESE DOCUMENTS ARE OR WILL BE MATTERS OF PUBLIC RECORD, AND, WHEN RECORDED, CAN BE OBTAINED FROM THE RECORDER'S OFFICE IN BROWARD COUNTY, FLORIDA. 4 macview aah ig PUA EY Gumi AINE. moet EXHIBIT t Page 14 of 14. cre 4 : PAGE OF is — Date. Afoi de. te, Tite TL CFN 20080073342 ake P at : OR BK 22469 PG 0807 RECORDED 02/28/2008 09:13:16 Law Office Of Wayne M. Richards, P.A. Palm Beach County, Florida 2001 Broadway, Suite 101 ANT 178, 141.00 Riviera Beach, FL 33404 Doc Stamp 1,247.40 Sharon R. CLERK & COMPTROLLER Fle Nghe Maroh 605 Pge 0807 te, (p96) A Portion of, By Identification Numbers: | 56-43-42-31-00-000-1000, , 56-43-42-31-97-0Q0-00 10, 56-43-42-3 1-00-000-1520,56-43-42-31-00-000-1530 PARP eS 520, 56-43-42-3 1-00-000-1010, 56-43-42-31-00-000-1780 < > [Space Above This Line For Recording Data]. Special Warranty Deed y This spec¥Rarraney Deed made this 20th day of February, 2008 between Marsh Harbour Associates, Lid., a hip. Florida limited partners! p-Wthose Post office address is 2F21 Ponce De Leon Blvd, Penthouse, Miami, FL 33134, grantor, and Smacview, Inc., a Florida ‘erporation whose post office address is 1440 Coral Ridge #272, Coral Springs, FL 33071, grantee: (Whenever ued hae th tema gay gece al he partes ots nsrament and hehe, eal peta snd gn of individuals, and the ‘Suecessors and assigns of corporations, trustsrand trustees) [can SF) Witnesseth, that said grarten, for and in consideration of the sum TEN AND NO/100 DOLLARS ($10.00) and other good and valuable considerations to said gyantor.jn hand paid by said grantee, the receipt whereof is hereby acknowledged, has granted, bargained, and sold to the said grantee, tee’s heirs and assigns forever, the following described land, situate, lying and being in Palm Beach County, Florida, to-wit: ‘4 3 » according to the Plat thereof, recorded in Plat Book 107, Pages 189-192, Florida. Cn Subject to the following financial encufabeanees: Co a. Mortgage excuted by MARSH “/HARBOUR ASSOCIATES, LTD. A FLORIDA LIMITED PARTNERSHIP, Mortgagor , to OCEAN BANK, Mortgagee, dated August 7, 2004 in the principal amount of $4,032,000.00. recorded September 17,2 as 5h, Offical Records Book 17534, Page 1980, Modified by that certain Future Advance, Consolidation and Radiation of Mortgage and Note Agreement dated March 21, 2005 in the amount of $38,182,655.00, recor larch 28, 2005 in Official Records Book 18312, Page 608, : Public Records of Palm Beach County, Florida, Lot 5, Block 25, of MARSH HARB! of the Public Records of Palm Beac! b. Assignment of Leases, Rents and Profits from MARSH HARBOUR ASSOCIATES, LTD., A FLORIDA LIMITED PARTNERSHIP, Assognor, to OCEAN BANK, Assignee, dated September 2, 2004, recorded . September 17, 2004 in Official Records 17534, Page 1996, Public Records of Palm Beach County, Florida, cs. UCC Financing Statment from MARSH HARBOUR ASSOCIATES, LTD., A FLORIDA LIMITED PARTNERSHIP, Debtor, and OCEAN BANK, Secured Party, September 17, 2004 in Official Records Book 17534, Page 2001, Public Records of Palm Beach County, Florida. d. Collateral Assignment of Development Documents and Covenants dated March 21, 2005 and recorded March 25, 2005 in Official Records Book 78312, Page 616, Public Records of Palm Beach County, Florida. . Mortgage from Smacview, Inc. to Marsh Harbour Associates, Ltd. dated January 29, 2008, in the principal amount of $178,141.00 Together with al! the tenements, hereditaments and appurtenances thereto belonging or in anywise appertaining. THIS CONVEYANCE is subject to: taxes and assessments for the current calendar year and all subsequent years, including, without limitation, all non-ad valorem taxes and assessments payable to the Marsh Harbour Community Development District; zoning ordinances, restrictions, reservations, limitations and easements of record, if any, but this reference shall not operate to reimpose same; all standard printed exceptions contained in an ALTA Owner's title insurance policy issued in Palm Beach County, Florida, any matters for which title insurance coverage is provided to Grantee; restrictions, conditions, easements, covenants, liens, terms and limitations set forth in the Declaration of Covenants, Restrictions and Reciprocal Easements recorded in Official Records Book 20456, at Page 1512 of the Public Records of Palm Beach County, Florida and ail exhibits thereto, all as amended or modified from time to time (the “Declaration"). GRANTOR hereby warrants the title to the Property and will defend the same against the lawful claims of all persons claiming by, through or under Grantor, other than those matters described above. Grantee, by acceptance and recordation of this Deed, expressly and specifically approves, accepts, covenants and agrees to be bound by and to assume performance of all the applicable provisions and requirements set forth in the Declaration and all amendments and/or supplements thereto. THE MARSH HARBOUR COMMUNITY DEVELOPMENT DISTRICT ("DISTRICT") MAY IMPOSE AND LEVY TAXES OR ASSESSMENTS, OR BOTH TAXES AND ASSESSMENTS ON THIS PROPERTY. THESE TAXES AND ASSESSMENTS PAY THE CONSTRUCTION, OPERATION, AND MAINTENANCE COSTS OF CERTAIN PUBLIC FACILITIES AND SERVICES OF THE DISTRICT AND ARE SET ANNUALLY BY THE GOVERNING BOARD OF THE DISTRICT. THESE TAXES AND ASSESSMENTS ARE IN ADDITION TO COUNTY AND OTHER LOCAL GOVERNMENTAL TAXES AND ASSESSMENTS AND ALL OTHER TAXES AND ASSESSMENTS PROVIDED FOR BY LAW, All the taxes and assessments, including special assessments, imposed by the District will appear in the tax bills for the | Property. rr pivic, CU lie gALN b. Sacre! 3O ws WENT FA EXHIBIT #2 at rs HIST F ub 1 t Book22469/Page807 pace __| _ PaBe1of2 __ In Witness Whereof, grantor has hereunto set grantor’s hand and seal the day and year first above written. Witnessed by: Marsh Harbour Associates, Ltd., a Florida limited partnership State of Florida 2 County of Miami-Dade Ke The foregoing instrument was siaovteat re me this 20th day of February, 2008 by Jorge Lopez, Vice-Chairman of Comerstone Congress, LLC, a Florida limited Fabitity company of BMG Comerstone Joint Venture, a Florida General Partnership, as General Partner, of Marsh ur Associates, Ltd., a Florida limited partnership on behalf of the corporation and the partnership. He/she [X] are, personally known to me or [_}have produced a driver's license as identification. tak [Notary Seal] ‘ oN Notary Public NOTARY PURLICSTATSOF Loma eS . st", Maritza Gorzalez-Ortiz Printed Name; Maritza Gonzale2-Ortiz Bs } Commission Beret 4 Evgires: 15,2011 issi ires: sovliaa tury arcane JONDING CO, INC. My Commission Expires: ADMINISTRATIVE COMPLAINT, EXHIBIT #_| DARE 2 OF . nen teen aa ses 3 eres S53 / Book22469/Page808 Page 2 of 2

Docket for Case No: 10-009438PL

Issue Date	Proceedings
Dec. 23, 2010	Order Closing File. CASE CLOSED.
Dec. 20, 2010	Motion to Relinquish Jurisdiction filed.
Oct. 29, 2010	Notice of Serving Request for Production filed.
Oct. 29, 2010	Notice of Service of Interrogatories filed.
Oct. 22, 2010	Order Directing Filing of Exhibits
Oct. 22, 2010	Order of Pre-hearing Instructions.
Oct. 22, 2010	Notice of Hearing by Video Teleconference (hearing set for January 10 and 11, 2011; 9:00 a.m.; Lauderdale Lakes and Tallahassee, FL).
Oct. 08, 2010	Response to Initial Order filed.
Oct. 05, 2010	Initial Order.
Oct. 04, 2010	Administrative Complaint filed.
Oct. 04, 2010	Petition for Formal Hearing filed.
Oct. 04, 2010	Election of Rights filed.
Oct. 04, 2010	Agency referral filed.