STATE OF FLORIDA DEPARTMENT OF BUSINESS\AND PROFESSIONAL REGULATION FLORIDA DEPARTMENT OF BUSINESS AND PROFESSIONAL REGULATION ji DEC 2 DIVISION OF REAL ESTATE 1: 50 od ~- JO:109 16 PL Petitioner, Vv. Case No. 2009005420 MANUEL MENDOZA CARDENAL, Respondent. / ADMINISTRATIVE COMPLAINT Petitioner, Department Of Business and Professional Regulation (“Petitioner”) files this Administrative Complaint before the Florida Real Estate Appraisal Board, against Respondent, Manuel Mendoza Cardenal (“Respondent”), and alleges: 1. Petitioner is the state agency charged with regulating © the practice of real estate pursuant to Section 20.165, Florida Statutes, and Chapters 120, 455 and 474, Florida Statutes. 2. At all times material to this Complaint, Respondent was licensed as a state certified residential real estate appraiser in the State of Florida, having been issued license number 1716. 3. Respondent's address of record is 17220 SW 77 Court, Palmetto Bay, Florida 33157. 4. On or about July 6, 2007, Respondent developed and communicated an appraisal report (Report) on a property commonly G:\LEGAL\probablecause-freab\Manuel Mendoza Cardenal 2009005420 AC.doc 1 FDBPR v. Manuel Mendoza Cardenal CaseNo. le Nehe vt Administrative Complaint Scrivener! k F hdr & mown as 4898 Paulie Court, #162, West Palm Beach, Fl Sebo Primm [fll De: (Subject Property) . Hier 5. A copy of the Report as obtained from the R__,~..ncue is attached hereto and incorporated herein as Administrative Complaint Exhibit 1. 6. Respondent appraised the Subject Property condominium at $168,000 for the client, Great Country Mortgage Bankers. 7. Petitioner received a complaint from a lender alleging certain errors in the Report after the complainant obtained an appraisal review valuing the Subject Property. 8. Respondent made the following errors or omissions in the Report: a) Respondent checked the box “no” indicating that the Subject Property was not currently offered for sale, yet indicated the assignment type as “purchase transaction”; b) Respondent’s work file contained a copy of the sales contract for the Subject Property for $164,900. A copy of the sales contract is attached hereto and incorporated herein as Administrative Complaint Exhibit 2; ¢c) Respondent recited that up to $10,074 to be applied to buyer’s closing costs, but the sales contract has no such provision; G:\LEGAL\probablecause~freab\Manuel Mendoza Cardenal 2009005420 AC.doc 2 FDBPR vy. Manuel Mendoza Cardenal Case No. 2009005420 Administrative Complaint dq) e) f) G:\LEGAL\probablecause-freab\Manuel Mendoza Cardenal 2009005420 AC.doc 3 Respondent signed the appraiser’s certification, specifically stating that Respondent inspected the interior of the Subject Property. When asked in the Report to describe the condition of the property, Respondent stated: “Per sales agreement and information provided to appraiser by on-site sales office and sales representative, the subject unit has a number of upgrades such as flooring, upgraded bathroom and kitchen areas. Based on this information the subject unit is considered to be in overall good condition for type and age with no functional inadequacies noted.” If Respondent had inspected the interior of the Subject Property, Respondent would have noticed the upgrades listed, rather than having to rely on the sales staff. The statement concerning the upgrades is misleading and suggests Respondent did not personally inspect the interior of the Subject Property as Respondent certified; Respondent misstated the age of the Subject Property; Respondent misstated that condominium unit housing trends showed increasing property values, with demand/supply in balance, when the condominium market was in decline with oversupply of units; FDBPR v. Manuel Mendoza Cardenal Case No. 2009005420 Administrative Complaint g) Respondent should have used the Income Approach to valuation in that the project information clearly disclosed that there were 90+/- units rented; h) The Report is misleading in that there is an oversupply of units beyond the 132 units reported as being for sale; i) The Report failed to disclose the proximity to the Palm Beach International Airport. 9. Respondent filed a written response to the complainant, a copy of which is attached hereto and incorporated herein as Administrative Complaint Exhibit 3. 10. Respondent utilized an incorrect designation. 11. Respondent falsely certified to the intended user of the Report that he had performed the appraisal in accordance with the requirements of the Uniform Standards of Professional Appraisal Practice (USPAP) that were in place at the time the appraisal report was prepared. 12. 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. G:\LEGAL\probablecause-freab\Manuel Mendoza Cardenal 2009005420 AC.doc 4 FDBPR v. Manuel Mendoza Cardenal Case No. 2009005420 Administrative Complaint COUNT ONE 13. Petitioner realleges and incorporates by reference the allegations set forth in paragraphs one (1) through (12) as though fully set forth herein. 14. Respondent's professional conduct in developing and communicating appraisal reports was governed by the Uniform Standards of Professional Appraisal Practice (USPAP) applicable at the time of the appraisal report, in this case the July 1, 2006 USPAP. 15. The Conduct Section of the USPAP Ethics Rule provides as follows: An appraiser must perform assignments ethically and competently, in accordance with USPAP and any supplemental standards agreed to by the appraiser in accepting the assignment. An Appraiser must not engage in criminal conduct. An appraiser must perform assignments with impartiality, objectivity, and independence, and ‘without accommodation of personal interests. An appraiser must not accept an assignment that includes the reporting of predetermined opinions and conclusions. An appraiser must not communicate assignment results in a misleading or fraudulent manner. An appraiser must not use or communicate a misleading or fraudulent report or knowingly permit an employee or other person to communicate a misleading or fraudulent report. An appraise must not use or rely on unsupported conclusions relating to characteristics such as race, color, religion, national origin, gender, marital status, familiar status, age, receipt of public assistance income, G:\LEGAL\probablecause-freab\Manuel Mendoza Cardenal 2009005420 AC.doc 5 FDBPR v. Manuel Mendoza Cardenal Case No, 2009005420 Administrative Complaint handicap, or an unsupported conclusion that homogeneity of such characteristics is necessary to maximize value. 16. USPAP Standards Rule 1-1 provides as follows: In developing a real property appraisal, an appraiser must: (a) be aware of, understand, and correctly employ those recognized methods and techniques that are necessary to produce a_ credible appraisal; (b) not commit a substantial error of omission or commission that significantly affects an appraisal; and (c) not render appraisal services in a careless or negligent manner, such as by making a series of errors that, although individually might not significantly affect the results of an appraisal, in the aggregate affects the credibility of those results. 17. USPAP Standards Rule 1-4 provides, in part, as follows: In developing a real property appraisal, an appraiser must collect, verify, and analyze all information necessary for credible assignment results. (a) When a sales comparison approach is necessary for credible assignment results, an appraiser must analyze such comparable sales data as are available to indicate a value conclusion. 18. USPAP Standards Rule 1-6(a) provides, in part, as follows: In developing a real property appraisal, an appraiser must: G:\LEGAL\probablecause-freab\Manuel Mendoza Cardenal 2009005420 AC.doc FDBPR v. Manuel Mendoza Cardenal Case No. 2009005420 Administrative Complaint (a) reconcile the quality and quantity of data available and analyzed within the approaches; and 19. USPAP Standards Rule 2-1 provides as follows: Each written or oral real property appraisal report must: (a) clearly and accurately = set forth the appraisal in a manner that will not’ be misleading; (b) contain sufficient information to enable the intended users of the appraisal to understand the report properly; and 20. USPAP Standards Rule 2-2(b) provides, in part, as follows: The content of a Summary Appraisal Report must be consistent with the intended use of the appraisal and, at a minimum: (viii) summarize the information analyzed, the appraisal methods and techniques employed, and the reasoning that supports the analyses, opinions, and conclusions; exclusion of the sales comparison approach, cost approach, or income approach must be explained; 21. Respondent failed to comply with the above USPAP Standards in developing the Report. 22. Based on the foregoing, Respondent violated Section 474.624(2), Florida Statutes (2007), by culpable negligence or breach of trust in a business transaction; or has violated a duty imposed upon Respondent by the terms of a contract, whether written, oral, express or implied, in an appraisal assignment, G:\LEGAL\probablecause-freab\Manuel Mendoza Cardenal 2009005420 AC.doc 7 FDBPR v. Manuel Mendoza Cardenal Case No. 2009005420 Administrative Complaint by certifying Respondent complied with the above USPAP Standards when he did not. COUNT TWO 23. Petitioner realleges and incorporates by reference the allegations set forth in paragraphs one (1) through (12) as if fully stated herein. 24. Section 475.624(15), Florida Statutes (2007), states the following shall constitute grounds for disciplinary action: [Respondent] “(has failed or refused to exercise reasonable diligence in developing an appraisal or preparing an appraisal report.” 25. Based on the foregoing, Respondent failed to practice appraisal practice with that level of care, and skill which is recognized by a reasonably prudent appraiser as being acceptable under similar conditions and circumstances. COUNT THREE 26. Petitioner realleges and incorporates by reference the allegations set forth in paragraphs one (1) through (12) as if . fully set forth herein. 27. Section 475.622(1)-(2), Fla. Stat., and Rule 61J1- 7.001(2), Florida Administrative Code, subject a real estate licensee to discipline for failing to display and disclose an appropriate designation adjacent to or immediately above the license number. G:\LEGAL\probablecause-freab\Manuel Mendoza Cardenal 2009005420 AC.doc 8 FDBPR v. Manuel Mendoza Cardenal Case No. 2009005420 Administrative Complaint 28. As set forth above, Respondent utilized an incorrect designation next to or above his license number. 29. Based on the foregoing, Respondent violated Section 475.622(1)-(2), Fla. Stat., and Rule 61J31-7.001(2), Florida Administrative Code, when he completed the instant assignment displaying an incorrect license designation next to or above his license number. G:\LEGAL\probablecause-freab\Manuel Mendoza Cardenal 2009005420 AC.doc 9 FDBPR v. Manuel Mendoza Cardenal Case No. 2009005420 Administrative Complaint WHEREFORE, Petitioner respectfully requests the Board of Real Estate Appraisal enter an order imposing one or more of the following penalties: permanent revocation or suspension of Respondent’s license, restriction of practice, imposition of an administrative fine, issuance of a reprimand, placement of Respondent on probation, assessment of costs, corrective action and/or any other relief that the Board deems appropriate. Signed this C day of Tver , 2010. CHARLIE LIEM, Interim Secretary Department of Business and Professional Regulation BceXi-S~ 2 Donna Christine Lindamood Senior Attorney Florida Bar No. 0273694 Department of Business and Professional Regulation Division of Real Estate 400 W. Robinson Street Suite 801-N Orlando, FL 32801 (407) 481-5632 Telephone (407) 317-7260 Facsimile PCP Date: 7/7/10 PCP Members: MR/FO G:\LEGAL\probablecause-freab\Manuel Mendoza Cardenal 2009005420 AC.doc 10 FDBPR v. Manuel Mendoza Cardenal Case No. 2009005420 Administrative Complaint NOTICE TO RESPONDENT (S) 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 Commission a motion requesting an informal hearing and entry of an appropriate Final Order which May result in the suspension or revocation of your real estate license or registration. Please see the enclosed Explanation of Rights and Election of Rights form. G:\LEGAL\probablecause-freab\Manuel Mendoza Cardenal 2009005420 AC.doc 11 FROM: MANUEL MENDOZA-CARDENAL APPRAISAL SERVICES OF SOUTH FLORIDA 21012 SW 97th PLACE CUTLER BAY, FL 33189 Telephone Number: 305-251-8114 Fax Number: 305-251-8116 TO: Internal Order 00724991 Lender Case #: GREAT COUNTRY MORTGAGE BANKERS Client Fie #: 2850 DOUGLAS ROAD, PENTHOUSE Main File # on form: CORAL GABLES, FL 33134 InFlle# onform: 90724991 Other File # on form: 995-0477229 Telephone Number: Federal Tax 1D: 65-0359735 Alternate Number: Employer ID: Lender: GREAT COUNTRY MORTGAGE BANKERS Client! GREAT COUNTRY MORTGAGE BANKERS Purchaser/Borrower: GLADIMIR & YVETTE D. FENELON Property Address: 5060 Palm Hilt Dr City: WEST PALM BEACH County: PALM BEACH State: FL Zip: 33415-7495 Legal Description: UNIT 162 BLDG 5060 OF PALM HILL CONDOMINIUM FULL FHA APPRAISAL/PROJECT SUBTOTAL Description: Description: Description: SUBTOTAL TOTAL DUE AUMINISTRATIVE COMPLAINT EXHIBIT # Fogm NIVS — TAL" appraisal software by a la mode, inc. — 1-800-ALAMODE PAGE — Cereal Services of South Florida (305) 251-8114 EXHIBIT 7 PAGI (oy. Borrower/Clent_ GLADIMIR & YVETTE D. FENELON ____File No. 00724991 Property Address_5060 Palm Hill Dr City WEST PALM BEACH County PALM BEACH State FL. Zip Code_33415-7495, Lender GREAT COUNTRY MORTGAGE BANKERS TABLE OF CONTENTS invoice Condo Building Sketch (Page - 1} USPAP identification ... Supplemental Addendum .. Subject Photos .... 12 Photograph Addendum 13 Comparable Photos 1-3 14 Location Map 15 Flood Map ADMINISTRATIVE COMPLAINT EXHIBIT # pace 2 oF Form TOCNP — "WinTOTAL' appraisal software by a la mode, inc, — 1-800-ALAMODE EXHIBIT. 7 pace (3 Appraisal Services of South Forida (305) 251-8114 (File No. 00724991] Page #2} oe we A . Oo Individual Condominium Unit Appraisal Report ies covzsoor ‘The purpose _of this summ: isal report is to provide the lender/client with an accurate, and adequately supported, opinion of the market value of the subject property. Property Address 5060 Palm Hill Dr Unit# 162 City WEST PALM BEACH State FL Zin Cade 33415-7495, Borrower GLADIMIR & YVETTE D. FENELON Owner of Public Record PALM HILL INVESTMENTS, LLt County PALM BEACH Legal Description UNIT 162 BLDG 5060 OF PALM HILL CONDOMINIUM. Assessor's Parcel # _42-44-11-13-001-XXXX Tax Year_2006 R.E, Taxes $_ NYA Project Name__ WEST PALM BEACH Phase # 1 Map Reference 42-44-11 Census Tract 0040.08 Occupant [_] Owner Tenant_ (J Vacant Special Assessments $_ N/A HOA $ 197.00 per year D<) per month FJ Property Rights Appraised De Fee Simple {| Leasehold |] Other (describe) Assignment Type _[X! Purchase Transaction [| Refinance Transaction Other (describe) Lender/Client_ GREAT COUNTRY MORTGAGE BANKE Address 2850 DOUGLAS ROAD, PENTHOUSE, CORAL GABLES, FL 33134 |s the subject property currently offered for sale or has it been offered for sale in the twelve Months prior to the effective date of this appraisal? Yes [Xj No Report data source(s) used, offering price(s), and date(s). PUBLIC RECORDS, DEVELOPER. 1 Bt 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. NO UNUSUAL CONDITIONS NOTED IN THE CONTRACT PROVIDED TO THE APPRAISER. HOWEVER APPRAISER IS NOT. QUALIFIED TO RENDER OPINIONS AS TO MATTERS OF CONTRACT LAW OR TERMS OF SALE INCLUDED IN SALES AGREEMENT. eq Contract Price $ 167,900. Date of Contract_09/20/07 4s the property seller the owner of public record? Yes [_JNo Data Source(s) REALQUEST Z \s there any financial assistance (loan charges, sale concessions, gift or downpayment assistance, etc.) to be paid by any party on behalf of the borrower? Bd ves (] no tf Yes, report the total dollar amount and describe the items to be paid. UP TO $10,074. TO BE APPLIED TO BUYER'S CLOSING COSTS. Note: Race and the racial composition of the neighborhood are not appraisal factors. Neighborhood Characteristics ‘Condominium Unit Housing Trend: : ondominium Housing'| “Present L Location (| Urban PX Suburban (_] Rural Property Values DX) Increasing Stable Declining PRICE AGE | One-Unit | Pay Bullt-Up Over 75% (_] 25-75% } Under 25% | Demand/Supply (_] Shortage DX] In Balance ["] Over Supply | _$ (C00) (yrs} | 2-4 Unit ey Growth [| Rapid —] Stable —([_] Slow Marketing Time _[_] Under 3 mths [x] 3-6 mths [] Over6mths| 104 Low NEW | Mutti-Family 20% F-q Neighborhood Boundaries _ SUBJECT MARKET IS LOCATED NORTH OF N 10 AVENUE, SOUTH OF 257 High 35 _| Gommercial 10% Fe SOUTHERN BLVD., EAST OF JOG ROAD AND WEST OF CONGRESS AVENUE. 460 Pred. 20 | Other 10 %) Neighborhood Description _ SUBJECT MARKET COMPRISES A BALANCED MIXTURE OF SINGLE FAMILY HOMES, MULTIFAMILY USES AND SUPPORTING NEIGHBORHOOD FACILITIES SUCH AS: RETAIL CENTERS, EMPLOYMENT, RECREATIONAL, HOUSES OF WORSHIP. SCHOOL, TRANSPORTATION AND OTHER NECESSARY FACILITIES ARE ALL LOCATED WITHIN CONVENIENT DISTANCE. Market Conditions (including support for the above conclusions MARKET CONDITIONS APPEAR STABLE. FINANCING INCLUDES CONVENTIONAL AND FHA FINANCING WITH SELLER'S CONCESSIONS NOTED. TYPICAL MARKET TIME RANGES FROM 3-6 MONTHS FOR PROPERTIES PRICED COMPETITIVELY. BASED ON INFORMATION OBTAINED FROM MLS A STEADY RATE OF APPRECIATION WAS NOTED. Topography LEVEL TO ROAD GRADE __Size_ 24.16 ACRES/PROJECT Density GOOD View_RESIDENTIAL/MLFAMILY. Specific Zoning Classification RM Zoning Description MULTIPLE FAMILY RESIDENTIAL (MEDIUM DENSITY) Zoning Compliance [Xj Legal_{_} Legal Nonconforming - Do the zoning regulations permit rebuilding to current density? [_] Yes [_] No No Zoning [_] tlegal (describe) ts the highest and best use of subject property as improved (ar as proposed per plans and specifications) the present use? (x1 Yes [1] No_If No, describe Utilities Public Other (describe) Public Other (describe) Off-site Improvements ~ Public Private Electricity XX Water yO Steet PAVED ASPHALT X im) fo] Gas Sanitary Sewer [X) Alley NONE NOTED. rw FEMA Special Flood Hazard Area [_] Yes DX No FEMA Flood Zone B. FEMA Map # _1201920165B FEMA Map Date_ 10/15/1982 Are the utiities and off-site improvements typical for the market area? Yes_[-] No_if No, describe Are there any adverse site conditions or extemal factors (easements, encroachments, environmental conditions, land uses, etc.}? Ld Yes No_H Yes, describe Data source(s) for project information DEVELOPER, CONDOMINIUM DOCUMENTS, REALQUEST Project Description _[_] Detached Row or Townhouse [X] Garden | | Mid-Rise High-Rise Other (describe) ‘General Description ‘General Description" ‘Subject Phas Project Conipleted: Project hi # of Stores 2 Exterior Walls CBS # of Units 386 _|# of Phases 1 # of Planned Phases N/A # of Elevators 0 Roof Surface SHINGL.| # of Units Completed 1386 _|# of Units '386__|# of Planned Units INIA: Existing [J Proposed [Total # Parking 773. # of Units For Sale 1206_| # of Units for Sale 206 _|# of Units for Sale INA Under Construction Ratio (spaces/umits) 2.03/1 | # of Units Sold 180_|# of Units Sold 480_|# af Units Sold N/A Year Built 1984 1 OPEN _{# of Units Rented 190-+-*| # of Units Rented '90+.*| # of Units Rented INVA Effective Age 5S YEARS _ |Guest Parkit ADEQ._|# of Owner Occupied Units [50_|# of Owner Occupied Units |50_|# of Owner Occupied Units |N/A. Project Primary Occu Principle Residence Second Home or Recreational Tenant Is the developer/bulider in control of the Homeowners’ Association (Hoa)? EJ Yes_[] No = Management Group - [_] Homeowners’ Association [XJ Developer_{_] Management Agent - Provide name of management company. Does any single entity (the same individual, investor group, corporation, etc.) own more than 10% of the total units in the project? Yes No___ tf Yes, Describe * PER INFORMATION PROVIDED BY ON-SITE MANAGEMENT OFFICE. 4 Was the project created by the conversion of existing building(s) into a condominium? _( Yes No_Hf Yes, describe the original use and date of conversion. mf RENTAL APARTMENT COMPLEX CONVERTED TO CONDOMINIUM USE IN 2006. Are the units, common elements, and recreation facilities complete (including any planned rehabilitation tor a condominium conversion)? Yes_[-] No_ff No, describe {s there any commercial space in the project? (Yes 5X] No If Yes, describe and indicate the overall percentage of the commercial space. CAM RUSTRETIVE COMPLAINT Freddie Mac Form 465 March 2005 : Page 1 of 6 Fannie Mae Form 1073 March 2005 EXHIBIT # p ade 1073 — ~wigeTa appraig@} Fottware by a la mode, inc, — 1-B00:ALAMODE EXHIBIT. / pacetot Individual Condominium Unit Appraisal Report res corner Describe the condition of the project and quality of construction. ‘THE PROJECT IS CONSIDERED TO BE IN OVERALL AVERAGE CONDITION. APPEAL TO THE MARKET, UNIT MIX AND QUALITY OF CONSTRUCTION ARE ALL AVERAGE. SUBJECT UNIT AND PROJECT CONFORM TO HUD/FHA PROPERTY REQUIREMENTS AS SET FORTH IN HANDBOOK 4150.2. 2 ESTIMATED REMAINING ECONOMIC LIFE: 50 YEARS. fe} Describe the common elements and recreational facilities, | GREEN AREAS, PARKING LOT, TENNIS COURTS, POOLS, LAUNDRY ROOMS, CABANA BATHS, BASKETBALL COURT, RACQUETBALL COURT. Are any common elements leased to or by the Homeowners’ Association? Yes [XJ No_lf Yes, describe the rental terms and options. 's the project subject to a ground rent? CT yes §X)No_ it Yes, $ __per year (describe terms and conditions) PROJECT INFORMATI ‘Are the parking facilities adequate for the project size and type? 1 Yes No_It No, describe and comment on the effect on value and marketability, WM de Sd didnot analyze the condominium project budget for the current year, Explain the results of the analysis of the budget (adequacy of fees, reserves, etc.), or why the analysis was not performed. IT 1S BEYOND THE COMPETENCE OF APPRAISER TO MAKE COMMENTS IN THIS FIELD. Are there any other fees (other than regular HOA charges) for the use of the project facilities? Yes DXjNo__ if Yes, report the charges and describe. PROJECT ANALYSIS Yes & No___If Yes, describe and explain the effect on value and marketabi permonthX12=$ 2,364.00 per year __Annual assessment charge per year per square feet of gross living area=$ 2.98 Ultias inluded in the unt monthly assessment None [_] Heat {| AirCanditioning {J Electricity [_] Gas Dx] Water Dd Sewer [J Floor # 2ND FLOOR Floors CARPET/LINOLIGD. |f] Fireplace(s) # # of Levels ONE Walls BRYWALL/GOOD WoodStove(s) # e ing Type FWA Fuel ELE [TrinvFinish WOOD/GOOD [_] Deck/Patio (Microwave DX] Central AC Bath Wainscot DRYWALLIGOOD. [_] Dishwasher Other (describe) Doors HOLLOW CORE/GD Washer/Dryel 2__Bedrooms 4 Bath(s) 792 Square Feet of Gross Living Area Above Grade EX} Yes_[_] No_if No, describe and comment on compatibility to other projects in the market area. Xx did not research the sale or transfer history of the subject property and comparable sales. I not, explain My research [_] did [X) 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) __ REALQUEST/MLS. fe My research [_] did 5X] did net 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) __ MULTIPLE LISTING SERVICE/REALQUEST B pp sor 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). STEM SUBJECT COMPARABLE SALE #1 [COMPARABLE SALE #2 COMPARABLE SALE #3 2 Pr oe of Prior Saie/Transfer NO PRIOR SALES NO PRIOR SALES NO PRIOR SALES. NO PRIOR SALES Ba] Price of Prior Sale/Transter WITHIN 3 YEARS WITHIN 3 YEARS WITHIN 3 YEARS, WITHIN 3 YEARS fej Data Source(s} REALQUEST/MLS. REALQUEST/MLS REALQUEST/MLS. REALQUEST/MLS. & Effective Date of Data Source(s} 09/04/07 09/04/07 09/04/07. 09/04/07 Analysis of prior sale or transfer history of the subject property and comparable sales. SUBJECT NOR COMPARABLE SALES HAVE CLOSED OR INDICATE. PRIOR SALES IN THE PAST 3 YEARS. Freddie Mac Form 465 March 2008 EXHIBIT ## Page 2 af 6 _ Fannie Mae Form 1073 March 2008 a) PAGE, 1 : Grey eed BORA AMODE — Z PAG LS EXHIBIT, ce ae woe » , 095-04 Individual Condominium Unit Appraisal Report ries oorzaosy 432* _ comparable properties currently offered for sale in the subject neighborhood ranging in price tram $_ 105,000 There are SUBJECT COMPARABLE SALE # 1 COMPARABLE SALE #2 Address and 5060 Paim Hill Dr, # 162 5150 PALM HILL DR. #261 513 SHADY PINE WAY #B2 [5095 PALM HILL DR., #353 Unit# _ WEST PALM BEACH, Fl. 33414 WEST PALM BEACH, FL 33415-4WEST PALM BEACH, FL. WEST PALM BEACH, FL 33416-9) Project Name and PALM HILL CONDO PALM HILL CONDO PINE RIDGE NORTH | CONDO |PALM HILL CONDO Phase 4 Proximity to Subject. Sale Price Sale Price/Gross Liv. Area fees 161.43 54.1 SETS 211.9959, tie Data Source(s) DEVELOPERJINSPECTION PUBLIC RECORDS/OBSERVAT. | DEVELOPER/INSPECTION Verification Source(s} LOSING STATEMENT. MLS#:2718512 CLOSING STATEMENT : VALUE ADJUSTMENTS DESCRIPTION | +()$ Adjustment | DESCRIPTION | +(-) $ Adjustment [ DESCRIPTION | +(-) $ Adjustment | Sales or Financing "FHA FINANCE NO ADJ.|CONVENTION. FHA FINANCE NO ADJ. | Concessions YES. -7,500|NONE NOTED YES -7,500 Date of Sale/Time (05/14/07 02/22/07 NO ADJ.|03/15/07 Location RES/MLFIAVG [EQUAL EQUAL EQUAL Leasehold/Fee Simple FEE SIMPLE [FEE SIMPLE FEE SIMPLE FEE SIMPLE HOA Mo, Assessment 197.00 EQUAL 159.00 NO ADJ.[EQUAL Common Elements POOLS/LDRY R|EQUAL EQUAL EQUAL and Rec. Factities GREEN AREAS |EQUAL _ EQUAL EQUAL Floor Location 2ND FUAVG. _|EQUAL 41ST FUAVG. NO ADJ.[EQUAL Fa view RES/MLF/AVG [EQUAL EQUAL EQUAL Fd Design (Style) IGARDEN/AVG. [EQUAL EQUAL EQUAL Fe ualty of Construction CBS/AVG. CBS/EQUAL CBS/EQUAL CBS/EQUAL E4 Actual Age 22 YEARS. EQUAL 25 YEARS NO ADJJEQUAL. PY Condition GOOD GOOD GOOD GOOD 1} Above Grade Total [Bdrms.| Baths | Total [sdrms.| Baths Total [Barms.| Baths Total [Berm | Baths E4 Room Count 4t2;iltato2ti 4l2i2 -2,000{ 4 [ 2] 14 Ey Gross Living Area 792 sq.ft) 792 sq, tt 1,115 sq, ft -10,000) 792 sq, ft Fe] Basement & Finished NONE NONE NONE NONE Fy} Roams Below Grade NONE NONE NONE NONE Fe Functional Utity GooD EQUAL EQUAL EQUAL bid Heating/Cooling CENTRAL EQUAL EQUAL EQUAL Energy Efficient items STANDARD [EQUAL EQUAL EQUAL | Garage/Camport 1+ADD.SPACE [EQUAL 4+ OPEN SPAC +3,000/ EQUAL, PorctyPatio/Deck NO BALCONY [EQUAL BALCONY -1,000/ EQUAL UPGRADES __|UPGRADES UPGRADES UPGRADES Net Adjustment (Tota -_|s -7,500, [1+ K- |$ ~10,000! + - |$ -7,500 Adjusted Sale Price NetAd, = 4.5 % NetAd. 5.6 % NetAd. 4.5 % of Comparables Gross Ad}. 4.5% 160,400)Gross Adj, 89% 170,000/Gross Adj. 4.5% Summary of Sales Comparison Approach ESTIMATE OF MARKET VALUE FOR THE SUBJECT UNIT. DESPITE THE FACT THAT SOME OF THESE SALES MAY BE LOCATED OUTSIDE THE ONE MILE PREFERRED PARAMETER FOR DISTANCE BETWEEN SUBJECT AND COMPARABLE SALES, THEY ARE Estimated Monthy Market Rent $ X Gross Rent Multiplier NIA indicated | Yai by income Approach 5 Summary of Income Approach (including support for market rent and GRM) INCOME APPROACH TO VALUE WAS CONSIDERED BUT JUDGED 2 INAPPLICABLE. WM indicated Value by: Sales Comparison Approach$ 168,000 Income Approach {if developed) $ N/A. * REPRESENTS LISTINGS OF CONDOMINIUM UNITS OF 2 BEDROOM COUNT. CONCILIATION ‘3 ‘This appraisal is made [xj “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 fottowing 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: THIS IS A COMPLETE APPRAISAL IN A SUMMARY FORMAT. INTENDED USER OF THIS REPORT IS CLIENT AND HUD. SEE LIMITING CONDITIONS. Based on a complete visual inspection of the interior and exterior areas of the subject ree scope of work, statement of assumptions and limiting conditions, and appraiser's certification, my {our) opinion of the market value, as ined, of the real property that is the subject of this report is $168,000 asof SEPTEMBER 24. 2007 ective appraisal, Freddie Mac Form 465 March 2005 Fannie Mae Form 1073 March 2005 EXHIBIT # Posen separ ernnuaarreraTeTt 7 o PAGE — "WinT?! ypraisal iets by ala mode, inc, — a HISIT PAG AEG 095-0477229 ort File # 00724991 Individual Condominium Unit Appraisal Rep This report form is designed to report an appraisal of a unit in a condominium project or a condominium unit in a planned unit development (PUD). This report farm is not designed to report an appraisal of a manufactured home or a unit in a cooperative project. This appraisal report is subject to the following scope of work, intended use, intended user, definition of market value, statement of assumptions and limiting conditions, and certifications. Modifications, additions, or deletions to the intended use, Intended user, definition of market value, or assumptions and limiting conditions are not permitted. The appraiser may expand the scope of work to include any additional research or analysis necessary based on the complexity of this appraisal assignment. Modifications or deletions to the certifications are also not permitted. However, additional certifications that do 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 complete visual inspection of the interior and exterior areas of the subject unit, (2) inspect and analyze the condominium project, (3) inspect the neighborhood, (4) inspect each of the comparable sales from at least the street, (5) research, verify, and analyze data from reliable public and/or private sources, and (6) 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. 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 thereto; and (5) the price represents the normal consideration for the property sold unaffected by special or creative financing or sales concessions* granted by anyone associated with the sale. *Adjustments to the comparables must be made for special or creative financing or sales concessions. No adjustments are necessary for those costs which are normally paid by sellers as a result of tradition or law in a market area; these costs are 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 aiready 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 Feaction 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 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 Fiood Hazard Area. Because the appraiser is not a surveyor, he or she makes no guarantees, express or implied, regarding this determination. 4. The appraiser will not give testimony or appear in court because he or she made an appraisal of the property in question, unless specific arrangements to do so have been made beforehand, or as otherwise required by law. 5. The appraiser has noted in this appraisal report any adverse conditions (such as needed repairs, deterioration, the presence of hazardous wastes, toxic substances, etc.) observed during the inspection of the subject property or that he or she became aware of during the research involved in performing this appraisal. Unless otherwise stated in this appraisal report, the appraiser has no knowledge of any hidden or unapparent physical deficiencies or adverse conditions of the property (such as, but not limited to, needed repairs, deterioration, the presence of hazardous wastes, toxic substances, adverse environmental conditions, etc.) that would make the property less valuable, and has assumed that there are no such conditions and makes no guarantees or warranties, express or implied. The appraiser will not be responsible for any such conditions that do exist or for any engineering or testing that might be required to discover whether such conditions exist. Because the appraiser is not an expert in the field of environmental hazards, this appraisal report must not be considered as an environmental assessment of the property. 6. The appraiser has based his or her appraisal report and valuation conclusion for an appraisal that is subject to satisfactory completion, repairs, or alterations on the assumption that the comptetion, repairs, or alterations of the subject roperty will b rformed in a professional . seen ay propery ue Pe AUN iota iv COMPLAINT Freddie Mac Form 465 March 2005 " Page 4 of 6 PAGE __(p OF Form 1073 — "WinTOTAL" appraisal software by ala mode, inc. — 1-800-ALAMODE 6 EXHIBIT, PAG eo] Fannie Mae Form 1073 March 2005 095-0477229 Individual Condominium Unit Appraisal Report ries oov24a01 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 develap them, unless otherwise indicated in this report. 5. [ researched, verified, analyzed, and reported on any current agreement for sale for the subject property, any offering for sale of the subject property in the twelve months prior to the effective date of this appraisal, and the prior sales of the subject property for a minimum of three years prior to the effective date of this appraisal, unless otherwise indicated in this report. 6. | researched, verified, analyzed, and reported on the prior sales of the comparable sales for a minimum of one year prior to the date of sale of the comparable sale, unless otherwise indicated in this report. 7. | selected and used comparable sales that are locationally, physically, and functionally the most similar to the subject property. 8. | have not used comparable sales that were the resuit of combining a land sale with the contract purchase price of a hame that has been built or will be built on the land. 9. | have reported adjustments to the comparable sales that reflect the market's reaction to the differences between the subject property and the comparable sales. 10. | verified, from a disinterested source, all information in this report that was provided by parties who have a financial interest in the sale or financing of the subject property. 11. 1 have knowledge and experience in appraising this type of property in this market area. 12. | am aware of, and have access to, the necessary and appropriate public and private data sources, such as multiple listing services, tax assessment records, public land records and other such data sources for the area in which the property is located. 13. | obtained the information, estimates, and opinions furnished by other parties and expressed in this appraisal report from reliable sources that | believe to be true and 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 appraisal 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 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 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 change to any item in this appraisal report; therefore, any change made to this appraisal is unauthorized and | will take no responsibility for it. 20, | identified the lender/client in this appraisal report who is the individual, organization, or agent for the organization that ordered and will receive this appraisal report. . “ MINISTBALvE COMPLAINT. ~ Freddie Mac Form 465 March 2005 Ri of Fannie Mae Form 1073 March 2005 a ae Mf Form 1073 — "WinTOTAC appraisal software by la mode, inc, ~F2R00-ALAMODE | mpm one 095-0477229 File # 00724991 8 Individual Condominium Unit Appraisal Report 21. The fender/client may disclose or distribute this appraisal report to: the borrower; another lender at the request of the borrower; the mortgagee or its successors and assigns; mortgage insurers; government sponsored enterprises; other secondary market participants; data collection or reporting services; professional appraisal organizations; any department, agency, or instrumentality of the United States; and any state, the District of Columbia, or other jurisdictions; without having to obtain the appraiser’s or supervisory appraiser's (if applicable) consent. Such consent must be obtained before this appraisal report may be disclosed or distributed to any other party (including, but not limited to, the public through advertising, public relations, news, sales, or other media). 22. | am aware that any disclosure or distribution of this appraisal report by me or the lender/client may be subject te 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 (exciuding audio and video recordings), or a facsimile transmission of this appraisal report containing a copy or representation of my signature, the appraisal report shall be as effective, enforceable and valid as if a paper version of this appraisal report were delivered containing my original hand written signature. 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. SUPERVISORY APPRAISER (ONLY IF REQUIRED) Signature Name Company Name Company Address Company APPRAISAL SERVICES OF SOUTH FLORIDA. Company Address 21012 SW 97 PLACE, CUTLER BAY, FL., 33189 Telephone Number 305 2518114 Telephone Number Email Address mmendoza@appraisingsouthflorida.com Date of Signature and Report SEPTEMBER 25, 2007 Effective Date of Appraisal SEPTEMBER 24, 2007 State Certification # STATE-CERT.RES.REA.RD1716 or State License # Email Address Date of Signature State Certification # or State License # State or Other State # State FL Expiration Date of Certification or License 11/30/2008 ADDRESS OF PROPERTY APPRAISED 5060 Paim Hill Dr, # 162 WEST PALM BEACH, FL 33415-7495 Expiration Date of Certification or License SUBJECT PROPERTY (© Did not inspect subject property (2 Did inspect exterior of subject property fram street Date of Inspection (J Did inspect interior and exterior of subject property APPRAISED VALUE OF SUBJECT PROPERTY$ 168,000 LENDER/CLIENT Date of inspection COMPARABLE SALES Name Company Name GREAT COUNTRY MORTGAGE BANKERS Company Address 2850 DOUGLAS ROAD, PENTHOUSE, CORAL GABLES, FL 33134 Email Address ramor08@yahoo.com ADIMINISTRATIY, Did not inspect exterior of comparable sales from street (C1 Did inspect exterior of comparable sales from street Date of Inspection COMPLAINT: Freddie Mac Form 465 March 2005 Fannie Mae Form 1073 March 2005 . Building Sketch Borrower/Client GLADIMIR & YVETTE D. FENELON Property Address_5060 Palm Hil! Dr City WEST PALM BEACH County PALM BEACH State FL Zp Code 33415-7495 Lender GREAT COUNTRY MORTGAGE BANKERS BEDROOM LIVING ROOM DINING AREA 3 BEDROOM ENTRANCE ‘Shatah by Apa Iv Comments: LIVING AREA BREAKDOWN Breakdown Subtotals AREA CALCULATIONS SUMMARY Code Description Net Size Net Totals GLAL First Floor 792.0 792.0 (Rounded) Net LIVABLE Area (Rounded) 792 mae OF Form SKT.BidSkl — "WinTOTAL" appraisal software by ala mode, inc. — 1-800-ALAl IBIT PAGE /0 Appraisal Services of South Florida (305) 251-8114 Borrower/Client___GLADIMIR & YVETTE D. FENELON File No, 00724991 Property Address 5060 Palm Hill Dr City WEST PALM BEACH County PALM BEACH State FL Zip Code 33415-7495 Lender GREAT COUNTRY MORTGAGE BANKERS. APPRAISAL AND REPORT IDENTIFICATION This Appraisal Reports one of the following types: ( Self Contained {A written report prepared under Standards Rule 2-2(a) , persuant to the Scope of Work, as disclosed elsewhere in this report.) & Summary (Awritten report prepared under Standards Rule 2-2(b) , persuant to the Scope of Work, as disclosed elsewhere in this report.) Restricted Use (A written report prepared under Standards Rule 2-2(c) , persuant to the Scope of Work, as disclosed elsewhere i in this report, restricted to the stated intended use by the specified client or intanded user.) Comments on Standards Rule 2-3 | certify that, to the best of my knowledge and belief: «The statements of fact contained in this report are true and correct. + The reported anatyses, opinions, and conclusions are limited only by the reported assumptions and limiting conditions and are my personal, impartial, and unbiased professional analyses, opinions, and conclusions. + |have no (or the specified) present or prospective interest in the property that is the subject of this report and no (or the specified) personal interest with respect to the parties involved, ~{ have no bias with respect to the property that is the subject of this report or the parties involved with this assignment, ~ My engagement in this assignment was not contingent upon developing or reporting predetermined results. ~ My compensation for completing this assignment is not contingent upon the development or reporting of a predetermined value or direction in value that favors the cause of the client, the amount of the value opinion, the attainment of a stipulated result, or the occurrence of a subsequent event directly related to the intended use of this appraisal. ~My analyses, opinions and conclusions were developed and this report has been prepared, in conformity with the Uniform Standards of Professional Appraisal Practice. - [have (or have not) made a personal inspection of the property that is the subject of this report. ~ No one provided significant real property appraisal assistance to the person signing this certification. (if there are exceptions, the name of each Individual providing significant Teal property appraisal assistance is stated elsewhere in this report.) Comments on Appraisal and Report Identification Note any USPAP related issues requiring disclosure and any State mandated requirements: 1 Lt APPRAISER: SUPERVISORY APPRAISER (only if required): Signature: Signature: Name: M, Name: Date Signed: MBER 25, 2007 Date Signed: State Certification #: STATE-CERT.RES.REA.RD1716 State Certification #: or State License #: or State License #: State: FL State: Expiration Date of Certification ar License: 11/30/2008 Expiration Date of Certification or License: Sul pera Appraiser inspection af Subject Property: Effective Date of Appraisal: SEPTEMBER OF iS Teg Rtefior-onty from street] Interior and Exterior EXHIBIT # Z pace Il FomfBg8,GinTOTAL*appraal otware MA mode, ne. — 1-800-AL ANODE Page #10) Supplemental Addendum File No.00724991 Borrower/Client_ GLADIMIR & YVETTE D. FENELON Property Address 5060 Palm Hill Dr Ci WEST PALM BEACH County PALM BEACH State FL Zip Code_ 33415-7495 GREAT COUNTRY MORTGAGE BANKERS Commenis and Conditions of Appraisal Purpose of the Appraisal The purpose of the appraisal is to estimate the Market Value of the subject property as of the date indicated. The definition of Market Value is as defined in FHLBB R-11e (9/11/87) and FNMA Form 1004b (7/86). Highest and Best Use Highest and Best Use (or Uses) that will produce the highest net or higher present worth. In analyzing Highest and Best Use, the appraiser considered four primary elements in the order presented: 1, Possible: Those physically possible uses to which the site is suited. 2. Permissible: Those possible uses permitted by zoning or deed restrictions. 3. Feasible: Those permissible uses, which wil! produce a net return or present worth to the owner. 4. Highest and Best Use: Those feasible uses, which will produce the highest net return or highest, present worth. The opinion of Highest and Best Use indicated in this report takes into account these factors and the subject property as it compares with the surrounding neighborhoods. Septic Tanks If "Septic Tanks" is indicated in the SITE section of the report, it is noted that this is an acceptable form of waste disposal in the neighborhood. Unless otherwise noted in the comment section of SITE or by separate addenda, no visible problem with a septic tank was noted at the time of inspection. The existence of a septic tank would have no effect on the estimate of value or marketability. Condition of Components The appraisal form used for this appraisal calls for opinions of conditions of certain components of the subject improvements including but not limited to appliances, heating and cooling systems, surfaces, electrical, mechanical or plumbing systems. The conditions indicated in this report are based on observation made at the time of the inspection. They rely on visual indicators as well as reasonable expectations as to adequacy, and are dictated by neighborhood standards relative to marketability. Flood Zone Information The Flood Zone information appearing on this report does not directly address the questions of whether or not flood insurance is Tequired on the property. Flood insurance requirements are established by Secondary Market participants through regulation, guideline and commitment. The information appearing on this report refers to the location (or not) of the subject property in a FEMA or HUD Identified Special Flood Hazard Area. For the purpose of this report, properties located in A, B, C or zones are deemed to be in a Special Flood Hazard Area. The information shown on the report was derived from Flood Insurance Rate Maps (FIRM) issued by the National Flood Insurance Program (NFIP) of the Federal Emergency Management Area (FEMA). From time to time a subject property will lie on or near a zone boundary line and it may be difficult to determine which zone or zones are indicated. In such cases, the appraisal form will indicate the most hazardous zone. Final determination of flood zone should be verified against a property engineering survey, indicating floor elevations. Income Approach to Value The Income Approach is premised on capitalizing a net operating income from a property to arrive at an indicated value. The Subject is a residential property, typically purchased for the intangible amenities of home ownership and not for the purpose of generating income. If the indicated value by Income Approach on the appraisal form was completed N/A, then it was the judgment of the appraiser based on the above factors and our research that the Income Approach was inappropriate for this assignment. Personal Property Certain items normally found in residential properties are Personal Property, which can be defined, as those items are not permanently attached to the real estate. From time to time purchase/sale contracts include items of personal property as part of the contract and sales price. These might include (but not limited to): * refrigerator * window treatments * above ground swimming pool * washer/dryer ™ countertop microwave oven * movable dishwasher * outdoor patio furniture * recreational items Scope of the Appraisal According to the Uniform Standards of Appraisal Practices, as adopted February 27, 1987 and effective July 1, 1987, the term “Scope of the Appraisal" means “the extent of the process of collecting, conforming and reporting data". In order to value the subject at hand, an inspection of the subject property, as well as it's surrounding area, will be performed for the purpose of thoroughly familiarizing oneself with it's location, physical and environmental qualities. Attention will be directed to the physical characteristics and direction of growth and the principal factors likely to influence the quality and quantity of demand for the area's residential market. A survey and analysis will then be conducted of residential properties in the relevant market area to determine the market trends with regards to physical characteristics inherent within the residential segment. The subject property will then be value using the Cost Approach, Direct Sales Approach and Income Capitalization Approach; however, any omission of these recognized methods will be explained by the appraiser. USPAP COMPLIANCE ADDENDUM The only intended user of this report is the client as indicated in the first page of the URAR form under “Lender/Client”. Any other intended user of this report will be indicated by appraiser by name. The intended use of this report is to: obtain new conventional financing, ___X__obtain new FHA financing, estimate the value of property for private party. The appraiser has identified the subject property in the first page of the appraisal report. This has been summarized under the Property Address section, the Legal Description section and the Assessor's Parcel No., or Folio No., any other relevant information is alse Aescebed.shroyehput he PRO pm gente additional addenda if needed. EXHIBIT 7fom roo "WinTOTAL" appraisal software by a la mode, inc, — vamoagypagit__Z_P AG el? PARE I! oF Fie No. 00724991] Pace #17] Supplemental Addendum File No. 00724991 Borrower/Client_ GLADIMIR & YVETTE D. FENELON Property Address _5060 Palm Hill Dr cl WEST PALM BEACH County PALM BEACH State_ FL. Zip Code_33415-7495 Lender GREAT COUNTRY MORTGAGE BANKERS The property interest being appraised is “Fee Simple” unless otherwise stated. The purpose of this appraisal report is to estimate market value as defined by the Appraisal Institute: “The most probable price, as of a specified date, in cash, or in terms equivalent to cash, or in other precisely revealed terms, for which the specified property rights should sell after reasonable exposure in a competitive market under all conditions requisite to a fair sale, with the buyer and seller each acting prudently, knowledgeably, and for self-interest, and assuming that neither is under undue duress. (The Appraisal of Real Estate, 11th, edition)”. The “Effective Date” of the appraisal and the “Date of Report’ are identified and indicated in the second page of the URAR and labeled as such. Scope of the Appraisal/Scope of work: According to USPAP as adopted February 27th, 1987 and effective July 1st, 1987, the term “Scope of the Appraisal” means “The extent of the process of collecting, conforming and reporting data”, In order to value the subject at hand, an inspection of the subject property , and its surrounding area will be performed for the purpose of thoroughly familiarizing oneself with its locational, physical and environmental qualities. Attention will be directed to the physical characteristics and direction of growth and the principal factors likely to influence the quality and quantity of demand for the area's residential market. A survey and analysis will then be conducted of residential properties in the relevant market area to determine the market trends with regards to physical characteristics inherent within the residential segment. The subject property will then be valued using the Cost Approach, Direct Sales Approach and Income Capitalization Approach, however, any omission of these recognized methods will be explained by the appraiser as they may or may not be applicable to the Subject property. The appraiser will make “Extraordinary assumptions” as to the working condition of equipment, soundness of structural members, environmental conditions or any other components/conditions which are beyond the expertise or capabilities of the appraiser. Whenever a “Hypothetical Condition” is made this will indicated by the appraiser in the URAR or in an addendum pertaining to this condition. Limiting Conditions that affect the appraisal report are included and located in the “Statement of Limiting Conditions and Appraiser's Certification’. The information analyzed, the procedures utilized and the reasoning that supports the opinions and conclusions of value are summarized in the URAR under the sections labeled as Comments on Sales Comparison and Final Reconciliation as well as addenda when applicable. The use of the subject property as of the date of valueis;___ Single Family Residential, __2-4 Family, _xX Condominium unit, Vacant Land, ___Other (explain). Personal property has been given no consideration in this appraisal report. The subject’s Highest and Best Use as defined by the Appraisal Institute: “ The reasonable probable and legal use of vacant land or an improved property that is legally permissible, physically possible, financially feasible, and that results in the highest value” is:__X___Highest and Best Use as Improved (Present), Other (see addendum). See attached signed Certification and Limiting Conditions. The appraisal is not a home inspection report and should not be relied upon to report the condition of the property being appraised. Digital Signature Digital Signatures are provided on electronically transmitted files and are considered an acceptable form of original signature. Intended User The client as stated on page one of the appraisal report is the intended user of this appraisal report. Comment on Predominant Price and Age The age or sales price which occurs within the marketplace with the greatest degree of frequency, within the time frame from which the sales data was selected (typically 6 months or 1 year), is reported as the "predominant" factor, also, there is no direct relationship between a greater occurrence of any single factor within a limited time frame, and the market value or marketability of one particular property. The fact that the predominant sales price is iower or higher than the estimate of market value does not indicate an adverse condition for the subject property. Form TADD — "WinTOTAL" appraisal software by a la mode, inc. — 1-800-ALAMODE EXHIBIT. / PAGE| teen oe Sb Saree No. 00724991) Subject Photos Borrower/Client__GLADIMIR & YVETTE D. FENELON Property Address_5060 Palm Hill Dr Cit WEST PALM BEACH PALM BEACH. State_FL. Zp Code_ 33415-7495 GREAT COUNTRY MORTGAGE BANKERS. Subject Front 5060 Palm Hill Dr, # 162 Sales Price 167,900 Gross Living Area = 792 Total Rooms 4 Total Bedrooms 2 Total Bathrooms 4 Location RES/MLF/AVG View RES/MLF/AVG Site ‘Quality CBS/AVG. Age 22 YEARS Subject Rear Subject Street ADMINISTRATIVE COMPLAINT EXHIBIT # PAGE ae OF Form PICPIX.SR — "WinTOTAL" appraisal software by a la mode, inc. —- 1-800-ALAMODE _ EXHIBIT. SAGE it re Photograph Addendum Borrower/Client_ GLADIMIR & YVETTE D. FENELON Address_5060 Palm Hill Dr WEST PALM BEACH County PALM BEACH State FL Zip Code_ 33415-7495 GREAT COUNTRY MORTGAGE BANKERS. . POOL RACQUETBALL COURT Comments: Comments: SALES OFFICE TENNIS COURT Comments: Comments: ADMINISTRATIVE COMPLAINT) EXE Form PICFOUR —“WinTOTAL" appraisal software by a la mode, in. —- 1-800-ALAMODE ‘ 6 EXHIBIT, AG Comparable Photos ## Borrawer/Glent_GLADIMIR & YVETTE D. FENELON Address 5060 Palm Hill Dr WEST PALM BEACH County PALM BEACH State FL Zip Code 33415-7495 GREAT COUNTRY MORTGAGE BANKERS Prox. to Subject Sales Price Gross Living Area Total Rooms Total Bedrooms Total Bathrooms Location View Site Quality Age Prox. to Subject Sales Price Gross Living Area Total Rooms Total Bedrooms Total Bathrooms Location View Site Quality Age ~ pDMINIST Comparable 1 5150 PALM HILL DR. #261 Comparable 2 513 SHADY PINE WAY #82 Prox. to Subject 1.66 miles SW Sales Price 180,000 Gross Living Area 1,115 Total Rooms 4 Total Becrooms 2 Total Bathrooms = 2 Location EQUAL View EQUAL Site Quality CBS/EQUAL Age 25 YEARS Comparable 3 5095 PALM HILL DR., #353 RATIVE COMPLAINT exuiait ¢{_ > An it en eneel 0.07 miles W 167,900 792 4 2 1 EQUAL EQUAL CBS/EQUAL EQUAL 0.07 miles W 167,900 792 4 2 4 EQUAL EQUAL CBS/EQUAL EQUAL Location Map Z| g fr 2 in ir aj : fc) 4 2 [=| 4 oO 4] z g «| a | 3 3 BI 2 g & § i Borrower/Cliant Zip Code_33415-7495 State FL ty PALM BEACH Count 2) oe g z Es) wy] 3 & fe] 2 Fs Ee 2 > fe} fe ia | oO § 3 = 5 Z ‘ g ‘toodside Dr=— Fone Forest Estate Dr pace // eB yer ine. 1 a | ~ agg aoe ALG Form MAP.LOC — "WinTOTAL" anhalt Flood Map Borower/Client_ GLADIMIR & YVETTE D. FENELON Property Address_5060 Palm Hill Dr WEST PALM BEACH County PALM BEACH Prepared for: InterFlood g2 Appraisal Services of South Florida ES by 8 ta rade 5060 Palm Hill Dr www.interflood.com « 1-800-252-6633 WEST PALM BEACH, FL 33415-7495 & CUMPLAINT, ey aan a Form MAP.FLOOD — "WinTOTAL" appraisal software by a la mode, inc. — 1-800-ALAMAPE BIT / PAI & Ls Sep.2. 2007 9:39AM wy No.§820 P. 2. : — one Soa te ORAL REPRESENTATION CANNOT BE RELIED UPON AS CORRECTLY STATING THE REPRESENTATIONS OF THE DEVELOPER. FOR CORRECT REPRESENTATION, REFERENCE SHOULD BE MADE TO THIS CONTRACT AND THE DOCUMENTS REQUIRED BY SECTION 718.503, FLORIDA STATUTES, TO BE FURNISHED BY A DEVELOPER TO A PURCHASHER OR LESSEE. CT FOR PI SA PALM HILL, A CONDOMINIUM Selier/Developer: = PALM HILL INVESTMENTS, LLC, a Fiorida limited liability company - porcbasecsy C\ adi mur Fene lon ¢ Yvette. Fen clon ‘ 2éocis! Security #:_ ¥4- $3- MYO tarits Status: Singhs Mailing Address; Home Phone: §(\~- § O2~ § work Phone: "cat , ; [enn Shao ; Palm hil drive * lez. Ww /.8. Fi. BS Closing Date; MINTUM or subject to Paragraph 29 (whichever Is later) In consideration of the purchase price specified below, the mutual covenants and benefits provided for herein and other good and valuable consideration, the reccipt and sufficiency of which ia hereby acknowledged by the parties bertto, the partics hereto do hereby agree as follows: |. GENERAL, Selfer agrecs to sell, and Purchaser agrecs to purchase, in accordance with the terms and conditions of this Contract for Purchase and Sale (“Contract”), the Unit referenced above ("Unit") of PALM HILL, A CONDOMINIUM. The Condominium is or shall be created pursuant to the Declaration of Condominium for PALM HILL, A CONDOMINIUM, which is or shall be recorded in the public records of Miami-Dade County, Florida. The Unit, together with its percentage of undivided interest in the Common Elements of the Condominium, is more particularly described in the Declaration. The Unit shall be purchased for the purchase price and under the terms and conditions set forth below and elsewhere in this Contract. Total Purchase Price: .. Deposit Made This Date: . Additional Deposit Dus on: << Proocedg of "Mortgage Loan”, if any... Balance Due at Closing Monthly Condominium Maintenance Charge. Contribution to Condominium Working Capital Fund .. 2. PURCHASE PRICE, ‘The total purchase price of the Unit shail be ag sct forth in Paragraph | above, and shall be paid ag Hows: , (8) All deposits made by Purchaser under Paragraph | (“Earnest Moncy") shail be consideration for Seller reserving the - Unit for Purchaser. Notwithstanding anything to the contrary herein, nonc of the monies received by Seller for upgrades to the Unit, if any, shall be deemed Eamest Money within the meaning of this Paragraph 2 of the Contract. The Ezmest Money shall be deposited in the Escrow Account of Oreat Country Title Services Corp. (“Escrow Agent) pursuant to Section 718.202, Florida Statutes and an Escrow Agreement between Seller ~ and Escrow Agent. Such Escrow Account shal! bs designated for the deposit of earnest monics received by the Seller with respect to units within PALM HILL, A CONDOMINIUM, and shall not be commingled with any other funds of the Seller, The mailing addregs of the Escrow Agent it * 2830 Douglas Road, Suits 400, Coral Gables, FL 33134. All notices and claims of Purchaser with respect to the aforeanid escrow deposits shall be sent to the Escrow Agent st its address sct forth above. Escrow Agent shall give Purchaser » receipt for his deposit upon his request. If Purchaser terminates this Contract without defaulting, Seller shall refund all deposits, Unless specifically set forth herein to the contrary, any and al] interest enmed on escrow funds shall be paid to Developer and shall be deemed the Developer's sole property. If Purchaser defaults, Selter shail be entitled to retain all deposits together with any interest actually accrucd thereon, Purchaser will be required to authorize disbursement of. escrowed funds by the Escrow Agent to Seller at closing. Prior to disbursing Earmest Moncy in the event of a default hereunder, Escrow Agent” shall give all parties (15) days notice, stating to whom the disbursement will be made. Any party may object in writing to the disbursement, provided the abjeotion is received by Escrow Agent prior to the end of the fifteen (15) day notice period. Ali objections not raised ine timely manner shall be waived, In the event a timely objection ia made, Escrow Agent shall consider the objection and shall do any or a combination of the following:. (i) hold the Earnest Money for # reasonable period of time to give the patties an opportunity to resoive the dispute; (ii) diaburse the Eamest Moncy and so notify all parties; and/or (fil) interplead the Eamest Moncy into a cost of competent jurisdiotion. : Escrow Agent shall be reimbursed for and may deduct from any fmds interplesded its costs and expenses, including attorney's fees. The prevailing party in the interpleader action shall be entitled to collect from the other party the costs and expenses reimbursed to Escrow Agent. No Party shall seek damages from Escrow Agent (nor shall |, Agent be liable for the payne) fir jariyfinater arising out of or related to the performance of Escrow Agent's duties under this Eamest pardgiaph.’ ** |” Sep-25- 2607 9:99AM. wy . No-5820 : (b) © The balance of the purchase price and all other amounts due including but not limited to fees and costs shall be paid , by certified check at the dme of closing, 3. ERQRATIONS. (2) Ad Valorem Tass. 4) Purchaser acknowledges thet, as of the year in which Closing takes place, the unit may not have been » scparately described and assesacd unit of real estate and thal, in that event, ad valorem taxes for the Unit for the year in which Closing takes place may be assessed under a tox bill in the name of Seller which covers additional Units. Should the unit not be separately described and assessed parce! of rea) estate, Purchasher agrezg to pay Scller at Closing that portion of the tax for the year in which Cloging takea plate (bared on the Seller's estimate of what the lax bill will be if the tax bill for the year in which may be by the percent interest in the Common Elements assigned to the Unit in the Declaration and then prorating the product of such muluplication ag of the date of Closing. Seller nggresg to pay the entire tax bill before it becomes delinquent and upon written request from Purchaser or any first mortgages of the Unit, to provide Purchaser or such mortgagee proof of payment. All such assessments shall be made based on a November payment discount. . (i) If, in the year in which Closing takes place, the Unit is a separately described and assessed unit Of real cetate, then ad valorem taxes applicable to the Unit sball be prorated between the Seller and Purchaser as of the date of Closing, All such assessments shall be made based on a November payment discount, . (b) Except for that portion of the asscssment installment as shall be payable for the morith in which the Closing shail take place, which shalt be prorated berween Seller and Purchaser as of the day of Closing, such adjusted common expense assessment shall be payable to PALM HILL CONDOMINIUM ASSOCIATION, INC. ("Association"), by purchaser in equal monthly installments, commencing on the first day of the calendar month immediately following the date of Closing, or as otherwise provided by the Board of Directors of the Association. From and after the first day of the first calendar month of the year following in which the Closing takes place, Purchaser shall pay alf amounts na are assessed against the Unit in accordance with the terms and provisions of the Declaration, Purchaser agrees and acknowledges that there will be a lien against the Unit for any assessment not paid to the Association, () Contribution to Capital of Association, In addition to all other sums due hereunder, Purchaser agrees at Closing to make a non-refimdabie contribution to the capital of the Association in an amount equal to two (2) months genera! assessment on the Unit, at the time of closing. 4. TORE (2) Purchaser acknowledges that the Unit he or she is to purchase may not now be a part of the Condominium. Prior to consummation of the sale contemplated by this Contract, Seller chall have submitted the Unit to the Declaration of Condominium. Title to the Unit shall be conveyed by Purchaser by special warranty deed, and title to the Unit shall be insurable or marketable and free and clear of all sacumbrances, except as provided in subparagraph (b) below. ‘ (b) It is understood and agreed that Purchaser is purchasirig the above referenced Condominium Unit, oubject to the items as hereinafter stated, and that title to the Unit which the Purchaser shell acquire pursuant to this Contract shail be good, marketable and/or gubject only to the following: (i) Conditions, restrictions, limitations, reservations, dedications, easements licenses, existing zoning ordinance and other rights of governmental bodies and instruments of record, ineluding, but not limited to, water, sewer, gus, electric and other utility agreements of record. (ii) Facts which an accurate survey or personal inspection of the Unit would disclose. (iti) Taxes for the current year and aubsequent years. (iv). Covenants, conditions, restrictions, terms and other provisions ss sct forth in the Declaration of Condominiam for PALM HILL, A CONDOMINIUM, Including all amendsnents thereto. {v) Any purchase money mortgage sxccuted by Purchaser in connection with the Closing of this - \ransaction, (vi) All standard policy exceptions und provisions ag may be contained in the A.L.T.A. owner's policy of title insurance and standard exceptions for waterfront property. . (vit) Any other items as disclosed in the prospectus. (c} RESPA Disclosure. As required by the Real Estate Settlement Procedures Act of 1974, Purchaser acknowledges that Seller has not directly or indirectly required Purchaser, 28 @ condition of sale, to purchase cither a fee owner’s or mortgagee's title insurance policy from any particular title company. Purchaser may elect ta obtain such insurance from a company of Purchaser's choice and Purchaser shall pay, at Closing, the title insurance premium for such policy, 5. CLOSING DATE. It is mutually agreed that the closing of the Unit (the “Closing” shall be held on or before the Closing date set forth on the first page hereof at the office of Great Country Tithe Services Corp, or as otherwise directed by the seller in the “closing notice”, The specified time and place for Closing shall be designated by the Seller in writi the "slpsing notice” given to ths Purchaser in accordance with the terms hrrof. ree teed PELE ee 2 Purchase and sald Contact ener P. 3 $ep.25- 2007 9:40AM - No.5820 P. 4. o4 . mos \ ‘ os 6 CLOSING COSTS. Purchaser will pay closing fees, examination fees, Lender's tide insurance fees including endorsements, lender fees, recording fees for the morgage Including taxes thereon and Purchaser's sttomey’s fees if any, Purchaser shall pay all costs and fers incident to the securing of financing and the clesing of the purchase and sale contemplated hereunder not specifically assigned ta the Seller including, but not limited to mortgage insurance premiums, cscrow deposits, prepaid interest, including, but not limited to, all discount points required by any lender, any fees nasociated with financing regarding the purchase of the Unit, intangible tax and fers, if applicable. 7. CLOSING DOCUMENTS, Purchaser also agrees to cxecute any closing statements or other documents which may be required in connection with the closing. In the event the closing is not completed on the datc set forth in the closing notice, Purchaser shall pay to Lt Seller interest on the unpaid balance of the purchase price at the highest rate permitted by law from the date set forth in the closing notice until the actual closing occurs and Purchaser shall be responsible for attorney's fees on other charges incurred by Seller aa result of rescheduling the closing. Payment at closing must be in United States cestiffed funds only. Seller shall provide a Special Warranty Decd at cloaing. 8. DEFAULT, (a) Purchaser's Default. Purchaser shall be.in default under this Contract in the event that (1) Purchaser fails or refuscs to complete and execute all of the instruments required of Purchaser under this Contract promptly or when requested to do ao by Seller or Lender, if applicable; or (2) Purchaser fails to or refuses to make timely payment of any payments required under this Contract; or (3) Purchaser in any other manner fails tp or refuses to perform his obligations under this Contract. In the event of any such default by Purchaser, Seiler shall give Purchaser written notice of auch default and allow. acven (7) days from the date of auch notice for Purchaser to cure such default. If Purchaser shall fail to cure such default within such seven (7) day period, the Sciler shall, and does hereby have, the unrestricted option to: (1) consider the Purchaser in default under this Contract (2) retain all sums paid to it hereunder as agreed upon and liquidated damage and in full settlement of any ¢laim for damages; and, (3) terminate ell rights of Purchaser under this Contract and, thereupon, the partics hercto will be released and’ relieved from all obligations hereunder, The provisions herein contained for liquidated and agreed upon damages are bona fide provisions for such and are not a penalty, the partics understanding thet by reason of the withdrawal of the Unit from sale to the general public at a time when other partics would be interested in purchasing the Unit, that Seller will have gustaincd’ damages if Purchaser defaults, which damages will be substantial but will not be capeble of determination with mathematical precision and, therefore, as aforesaid, the provisions for liquidated end agreed upon damages have been incorporate into this Contrect a9 proviaions beneficial to both parties hereto, Purchaser and Seller recognize the impossibility of measuring Seller's damages if Purchaser defaults. In the event any litigation or arbitration is commenced as a result of this Contract and Seiler prevails in such litigation or-arbitration, the Purchaser shall also be liable for Sciler’s attorney's fees and costs resulting therefrom, : : (b) Seller's Default. If Seller defaults in the performance of this Contract, Purchaser shall give Seller written notice of such default, and if Selfer, within seven (7) days from receipt of such notice shall fail to take action that would cure the default within a reagonable period of time, and if Purchaser has performed all of his obligations hereunder, then Purchager’s sole remedy shail be to terminate this Contract by written notice delivered to Seller and Escrow Agent and to recover Purchaser's deposit and any intercat carned thereon, which amount shall be fixed and full liquidated darnages, it being acknowledged that ‘it is impossible to more precisely estimate the specific damages to be suffered by Purchager, but the sum herein stipulated is a reasonable estimate of such darjages and the parties hereto expressly acknowledged and intend that this provision shall be » provision for the return of the Eamnest Money plus interest 28 liquidated darnages and not ss 3 penalty. Purchaser shall not be entitled (i) to specific performence, or any other remedica avaiable under law, or (ii) to prepare, file or record a lis pendens against the Unit, of (iii) to the award of any damages including any damages for purely economic losses other than as agreement of Purchaser not to impede or interfere with » subsequent sale of the Unit, and that Seller will be damaged in the event Purchaser faila to comply with the requirements of this Paragraph 8. This paragraph is in no way intended to limit the Purchaser's remedy for the Seller's willful non-performance under the contract. If the Seller’s default is found to be a willfit] non-performance under the contract, Purchaser shall have any end el) lawful remedies available to Purchaser. i 9. NON-ASSIGNABILITY. This Contract and Purchaser's interest and. rights hereunder are personel to Purchaser and neither said Contract not the interest or rights of Purchaser hereunder or any portion thereof, shall be assigned or transferred directly or indirectly, in whole or in part, without prior written approval seller. Any such assignment without such written approval of Selier shall be invalid and shall not be binding upon Seller and shall not relieve Purchaser of Purchager’s obligations under this Contract. In the svent Seller agrees to an assignment, the purchase price shall be increased by Twenty-Five Thousand and No/100 Dollars ($25,000.00). This Contract shall be binding upon and inure to the benefit of the heirs, executors, administrators and permitted essigns of the parties lo this Contract; provided, however, this Contract shall _¢ not become binding upon Seller until approved purmuant to the terms hereof; 10. NOTICES. The delivery of any Items and the giving of noti¢e in compliance with thia Contract shall be accomplished by __ delivery of the.ivem or notice to the party intended to reccive it or by mailing by certified or registered mail, U.P.S., Federal Express, or Airbome Expreas addressed’ to the address of the party herein stated, Notice or delivery by mail shall be offective when mailed. Notice of delivery by pommitied overnight courier shall be effective the day deposited with such courier. i 1. FINANCING. . i (a) Check the appropriate bor. : 1 -(. ] Purchaser represents to Scller thet no morigage financing is necessary or desirable for Purchascr to complete this transaction and that Purchaser does not desire For thir Contract to be contingent upon his ability to obtain financing. \ i {or} 1 rn . Purchaser represents to Seller that Purchhsor is im needof.a mortgage loan in the principle amount act forth 7 Earneraph | inorder complete thi tion. . : _& E ae fiatb: i . Purchaser Purchase and Sale Contract AA 7 Sep.25. 2007 9:40AM. oe ; No-§820 > “me 7: (b) Mortgage Contingency. a Brespproved Lender. . {1) in the event the Purchaser seeks financing with the asaisunce of Seller through a lender preapproved by the Soller (a “Preapproved Lender”) and such Preapproved Lender docs not approve Purchaser's loan application, provided that Purchaser furnishes complete and accurate information to such Preapproved Lender, al] monies held in escrow wil] be fully refundable to Purchaser, In no event will the loan applications fee paid directly to the Preapproved Lender be refundable. The Preapproved Lender is “Grear Country Mortpare Benkers Coro”. The Preapproved lender is subject to change without notice, (2) Uf Purchaser docs not cancel this Contract within the fifteen (15) day period provided in Paragraph 35 and does not make @ complete and accurate application a6 tequested by a Preapproved Lender or within (3) days provide for any additional documents requested by such Preapproved Lender, the transaction contemplated by this Contract shall be sonsidered an all cash transaction and no Earmest Money shall be refundable to the Purchaser in the event Purchaser fails to close on the Closing date. (3) Purchaser agrees and understanda that Seller is only referring Purchaser to » Preapproved Lender and any anproval in subject ta such Preapproved Lender. Under no circumstances shalt the Seller be responsible for obtaining financing for . urchaser, . (ii) Nonaprreyed Lender. In the event the Purchaser stcks financing through a lender without the assistance of the Seller (a “Nonspproved Lender", “Preapproved' Lender” and “Nonapproved Lender” shall be referred to collectively as “Lender"), Purchaser understands that monies held in escrow shall not be refundable should the financing be disapproved. If Purchaser seeks financing through » Nonapproved Lender, this contract shall be considered an “afl cach” transaction not subject to Purchaser obtaining financing approval, In the event financing is approved, all mostgoge costs will be paid by the Purchaser in full. (iti) Purchaser agrees and understands that the loan prograin (term, interest rate, LTV, etc) shall be determined by the Lender only, according to the Purchaser's qualifications and regardiess of the loan arnount requested on the fret page of this Contract. The loan program is the sols reaponsibitity of the Purchaser, Therefore, Purchaser should confirm with the Lender the exact \erms of the loans within fifteen (15) days after recciving the documents required under paragraph 35 (that is, within the time that the Purchzeer mey cancel this Contract under Chapter 718, Florida Ststutes), In no event shall the Closing be contingent upon the particular loan program approved by the Lender. (iv) Notwithstanding anything contained herein to the contrary, the Closing Date shall be extended as may be required by a Preapproved Lender, upon Seller's approval only, Under no circumstances shall the Closing Date be extended at the request of a Nonapproved Lender. . . ) in the event Paragraph 1 of this Contract provides for a mortgage loan, thia Contract will be subject to cancellation upon written notice by the Seller if Purchaser(s) does not complete the mortgage application(s) and all necessary forms within five (5) business days of execution of this Contract, 12, CREDIT CHECK. Purchaser hereby authorizes Great Country Morteare Bankers Corp. or any affilisted entities, to inquire into Purchaser's EQUIFAX, EXPERION or TRANSUNION credit reports. Purcheser agrecs to pay al! costs relating to the credit report which shall be in addition to the purchase price. 13. CONSTRUCTION BY PURCHASER, Purchaser shall comply with all governmental requirements for any construction to be p. done in the Unit at Purchaser's expanse, including, but not limited to, permits, plana, deposit, insurance, approval from the Association, Dumpster : fee, Contract License, etc. In addition, Purchaser shall provide Seller's construction department advance written notice of any renovation to be done in his/her Unit, and release BPALM HILL INVESTMENTS, LLC from any liability. PALM HILL INVESTMENTS, LLC will not . guarantee the work or completion, of any subcontractor of affiliated contractor of Purchaser when privately contracted by Purchaser. The provisions of this paragraph shall survive closing. . 14. UNIT TO BE PURCHASED “AS IS". ; {a) This Condominium is being created by the conversion of existing previoutly occupied improvements. All Unite in the Condominium have been previously occupied. Uniess otherwise set forth herein or in any addendum to this Contract, Seller shall not by the execution and delivery of any document or instrument executed and delivered in connection with the Closing, make any warranty, express or implied, of any kind or any nature whatsoever, with respect to the Condominium Unit other than warrantics of title pursuant to the deed of conveyance in Paragreph 4, and all such warranties ure hereby disclaimed. Without limiting the generality of the foregoing, SELLER MAKES, AND SHALL MAKE, NO EXPRESS OR [MPLIED WARRANTY OF SUITABILITY OR FITNESS OF THE: UNIT FOR ANY PURPOSE, OR AS TO THE MERCHANTIBILITY, VALUE, QUALITY, CONDITION OR SALEABILITY OF THE CONDOMINIUM UNIT, The sale of the Unit by Seller to Purchaser shal! be “AS 1S” and "WHERE IS". ‘Seller shall transfer to Purchaser any manufacturing warrantics pertsining to the Unit which by their terms are transferable, Sciler is not responsible for the condition of the water heater or sir handler in this Unit of for any damage caused by this water heater of air handler, after closing. Therefore, it is suggested that shortly after closing Purchaser should service and maintain this water heater and air handler appropriately. (b) Notwithstanding the foregoing, a converter reserve account has bean established pursuant to Sectios 718.618(1), Florida Starutes. Therefore, pursuant to Sections 718.618(6), Florida Stamtes, the Developer is decmed to not have granted the Purchaser of cach unit an implied warranty of fimess and merchantability for the purposes or uses intended, 99 to the roof and structural ” components of the improvements; as to fireproofing and fire protection systema, and B < enigal, sicctrical eng plumbing elements serving it Poe at i i i the improvementa, except mechenical elements serving only one Unit.’ ; EXHIBIT 4 _ PAGE Purchase and Sale Contract f TA A sl 5. Sep.25. 2007 $:4lAM. ae No.0820 P. § {c) To the extent permitted by law, the Developer specifically disclaims any and al) other implied warranties of merchantability and fitness rs to the Condominium Property, any Unit or any appurtenances thereto, including any appliances, furniture, fixtures or personal property. . , 15. OV, STATUS. Purchaser acknowledges that there may be ongoing renovations to the Common Elements afer Closing. Purchaser acknowledges that Seller will nor be obligated to give any reduction in purchase price, of reimburac any expense, or place any funds in escrow duc to ongoing renovations at the time of Closing. 16, SURV CONTRACT. All conditions or stipulations not fulfilled at time of Closing shall survive the Closing until such time 28 the conditions or stipulations are fulfilled. 17. POSSESSION. Possession of the Unit shall be delivered to Purchaser at the Closing, subject to any leage which may be in offeot, if the unit is occupied. 20. BROKERAGE AND AGENCY, Except as set forth below, Purchaser and Seller Tepresent end warrant to the other that each party bas not dealt with broker, agent, or finder in connection with this transaction and Purchaser and Seller covenant and agree, each to the other, to indemnify and hold each other harmless fom any and all losses, damages, costs snd expenses including, but not limited to, attomey's fees and court costs that may be incurred or suffered as a result of sny claim for any fos, commission or similar compensation with respect to this transaction made by any person of entity, whether or not such claim for any fea, commission, or similar compensation with respect to this transaction made by any person or entity is meritorious. Purchaser and Seller acknowledge that they have not relied upon any advice, represencations or statements of any Broker and waive all claims involving the same, 21. ELOOR PLANS AND MODELS. Purchaser hereby acknowledges and agrees that any ficor plans, renderings, drawings, and the like, furnished by Seller to Purchaser which Purport to depict the Unit or any portion thereof, or the building containing the same, are merely approximations, arid do not necessarily reflect the actual as-built conditions of the same. The Purchaser further acknowledges and agrees that the decorations, paint colors, carpet, special wall textures, window treatments, hard surface floors, some mirrors afd pancling, art work, fumiture, furnishings, wallpaper, fixtures, appliances, and the ike, contained in any model unit of PALM HILL, A CONDOMINIUM, are for demonstration purposes only, and are not included in the Unit which js the subject of this Contract or necessarily representative of the Unit. Additionally, utility locations and air conditioning condenser locations may vary between model Unit(s) and other produation Unita. 22. TIMEOF ESSENSE. Time is of the casence of this Contract. 23. FORCE MAJEURE. Either party hercto shall be excused for the period of any delay in the perfonnences of any obligations hereunder when such delay is occasioned by cause of causes beyond contro! of the party whose performance is 80 delayed and the time for performance shall be automatically extended for a like period, Such causes shal} include, without limitation, all labor disputes, civil commotion, war, warlike operations, invasion, rebellion, hostilitics, military or usurped power, sabolage, government seguiations or controls, fire or other casualty, inability to obtain any necessary materials or services, or acta of God. 24. SEVERABILITY. The provisions of this Contract are intended to be independent, and in the event any provision bereof should be declared by » court of competent jurisdiction to be invalid, illegal, of unenforceable for any reason whatsoever, such illegality, unenforceability, of invalidity shall not affect the remainder of this Contract. 25. CONTRUCTION OF CONTRACT, This contract concerns the sale of real property located in the State of Florida. This Sontract, and all of the relationships between the parties hereto, shall be construed and interpreted in accordance with the laws of the State of Florida. Notwithstanding the above, the Purchaser and Seller scknowledge that they have read, understand, and have had the opportunity ta be advised by legal counsel as to cach and everyone of the terms, conditions, restrictions, and effect of all of the provisions of this Contract and every part of the Prospectus, al] of which are incorporated herein by reference and made a part hereof, and the Purchaser agrees to the’ enforcement of any and all of these provisions. It is further agreed that words of any gender used in this Contract shall be held to include any other gender, any words in the singular number shall be held to inchide the plural whenever applicable, and that captions and paragraph nutnbers appearing in this Contract are inserted only a8 a matter of convenience and in no way define, Iimit, construe or describe the scope or intent of such paragroph or in any way affect this Contract. 26. ENTIRE AGREEMENT. This Contract contains the entire agreement between the parties hereto. No agent, representative, - salesman, or officer of the pasties hereto has authority to make, or hes made, any statements, agreements, or representations, either oral or in ° writing, in connection herewith, modifying, adding to, of changing the lerms and conditions hereof and neither perty bas relief upon any Tepresentation or warranty not ect forth in this Contract, unless the statement is published by or under authority from the developer in advertising and promotional materials, including, but not limited to, a Prospectus, the items required ag exhibits to 8 prospectus, brochures, and newspaper advertising, No dealings between the parties or customs shall be permitted to contradict, vary, add to, of modify the terms hereof. Purchaser acknowledges, warrants and represents that this Contract is being entered into by Purchaser without reliance upon any representations concerning any potential for future profit, any rental income potential, tax advantages, depreciation or investment potential, and without reliance upon any other monetary or financial advsntage, Purchaser acknowledgea that no such representations have been made by Seller or any of its agents, employees or representatives, : 27. OFFER. This Contract, as executed by Purchaser, shall constinute an offer to Seller, Seller may accept the same, if at all by delivering to Purchaser at least one executed original of this Contract prior to the time that Purchaser shall notify Seller, in writing, of Purchaser's " Tevocation of this offer. The date of this Contract is the date of acceptance by Seller. - 28 DISCLOSURES REGARDING THE UNIT. “Purchaser acknowledges and agrees.thet he/she has read and understood the disclosures pertaining to the purchase and sale of the Unit contemplated by this Contract and the Condominium as act forth in the Prospectus and incorporate herein by this reference. 29. PRESALE CONTINGENCY, Seller's obligation to close hereunder is expressly contingent upon Seller's procuring i * 1 rar . . Qualified Purchase Contracts aa required by Seller’ 8 Joep sererruent with, jp lender tevshey evenithe pre-sale requirements are not met Seller . . Lf. , : 5 EXHIBIT i) xe ‘ Me , PART Ss. Oe - pace BF net "Purchase and Sale Contract at~ _ $er-2h- 2007 Sc 4tAM a No. 9820 “, - =m mo shall have the unilateral right to tenninate this Contract by giving written notice to the Purchaser and Seffer shall refund ail Eamest Money paid hereunder, : 30. INSPECTION PROCEDURE. (a) Purchaser is required io conduct a personal inspection of the Unit with Seller’s representation ata mutually convenient time during Seller's normal business hours no more than three (3) days PMor to the scheduled closing date. : (>) If Purchaser is unable to conduct the persona inspection of the Unit with Seller, a9 required, Purchaser may designate a representative by written notice to Seller. Purchaser will be bound by the actions of the representative. (c) During the personal inspection, Purchaser or Purchaser's representative and Seller will complete a list of inspection items in the Unit which require Seller's attention. Purchaser and Seller will sign the list as conclusive evidence of the agreed spon Work to be performed, When the agreed work has been performed (which will be within a reasonable time considering the availability of materials and the nature of the work to be performed) that will be deemed conclusively that: (1) Seller's obligations have been fulfilled, and (2) any additiona) items will be the responsibility of the Purchaser. (d) Any contrsctor of Purchaser will bc allowed access to the Unit for construction work only subsequent to the later of: (1) completion of the personal inspection, (2) signing of the list of inspection items by Purchaser; and (3) closing. (e) It is agreed by the parties to this Contract that the fact that the parties have not completed the inspection, of that items listed on the inspection list have not been eddressed by Seller, will not entitle Purchaser to delay closing or to withhold money due Seller at closing, and refusal to close as acheduled or to pay the full purchaser price at closing will constitute a default by the Purchaser. Seller's obligation to perform the work agreed upon in the list of inspection items will survive closing. (f) Failure of the Purehsser to conduct the personal inspection and complete and sign the fist of inspection items by the date catablished in Paragraph 30(a) of this Contract will be deemed to bs: (1) conclusive of Purchaser's acceptance of the Unit in accordance with Paragraph 14; and (2) a complete waiver of all objections to defects in workmanship or materials. This will not be, deemed to be a waiver of any warrantics provided to Purchaser by law. (e) ‘The provisions of this paragraph shall survive the closing. 31. PROSPECTUS. The Purchaser acknowledges that prior to the execution of this contract, all of the statutory information conceming this Condominium required by Sections 718.503 and 718.504 of the Act has bren delivered to the Purchaser, the receipt of which ig hereby acknowledged by Purchaser by signing the Receipt of Condominium Documents attached hereto. : 32. RADON GAS DISCLOSURE. The following diactogure is required by Section 404.056(8), Florida Stanutes, for all Contracts for Sale and Purchaser of any building in Florida: “Radon js a naturally occurring radiosctive 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. Levels of radon that axceed federal and state guidelines have t been found in buildings in Florida. Additional information regarding radon and radon testing may be oblained from your county public ealth unit.” 33. DELIVERY OF UNIT. The Unit hag previcusly bean occupied and is being delivered in “as is” condition. If there is currently a tenant in the Unit, under Florida Sterutes, Chapter 718, part VI (“Condominium”), the tenant has the right to extend his or her lease for » period up to thres hundred sixty (360) days from the date of receipt of a Notice of Intended Conversion, and the tenant had the right to purchase the Unit for 2 period of forty five (45) days after receipt of the items required to be delivered pursuant to Section 718.612 of the Condominium Act, Sccause of the tenant’s rights get forth above, Purchaser acknowledges that thia Content will be effective only if the tenant does not exercise his right of first refusal as act forth above. If tenant exercises this right of first refusal to purchase the Unit, this Contract shall be null and void and of no further force and effect, and all monies held in escrow only shall be retumed to Purchaser and al parties shall be relieved of their respective obligations, If tenant does not exercise his right of first refusal, then this Contract shall remain jn fuil force and effect, and Purchaser shall purchase the Unit subject to tenant's rights, Purchaser shall assume all of the landlord’s rights and obligations under tenant’s lease and Florida Statutes, Purchaser acknowledges.receiving a copy of the executed leases or sublease of the unit. THE UNIT 1S SUBJECT TO A LEASE (OR SUBLEASE), . Purchaser agrees to apply for financing in accordance with Paragraph 11 herein, if applicable, in the event Purcheser makes application prior to the date on which the tenant's righ! of first refusal expires, in consideration therefore, the Seller agrees to refmburse Purchaser for application foes incurred only if the tenant then exercises its right to purchaser the Unit. 34. SPECIAL STIPULATIONS. The following stipulations, if in conflict with any preceding provisions, shal! control; : (a) Exhibits and Addenda. The Exhibits and/or Addenda that are attached hereto are by this reference made a part hereof. : : (>) Pemonal Propery. The following items shall remain with the Unit in their present vondition at no ~ additional cost to Purchaser, Selier shall warrant unencumbered title thereto to Purchaser at Closing: Air Handisr, Water Hester, Stove; Refrigerator, and Dishwasher. . ’ {c) Statement by Salesperson. Seller and Seller's officers/employees are not responsible for, or bound by, any statement representation and/or Contract by a salesperson or other agents unlesa such statement, representation and/or Contract is in writing and signed by ons of Seller's authorized officers, or is published by or under authority from the developer in advertising and promotional materials, including, but not limited te, » prospectus, the items required as cxhibits to, a.prospectus, brochures, and newspaper advertising. PLEASE ACKNOWLEDGE THAT IN MAKING:"THIS“PURCH: i {AS 6 p. ] Sep.25. 2007 9:42AM . ae No-9820 oP. 8. - ~ los ‘ . _ REPRESENTATION OR CONTRACT MADE BY A SALESPERSON OR ‘AGENT (EXCEPT AS MAY BE [N WRITING AND SIGNED BY ONE OF SELLER'S AUTHORIZED OFFICERS OR PUBLISHED BY OR UNDER AUTHORITY FROM THE DEVELOPER IN ADVERTISING AND PROMOTIONAL MATERIALS, INCLUDING, BUT NOT LIMITED TO, A PROSPECTUS, THE ITEMS REQUIRED AS EXHIBITS TO A PROSPECTUS, BROCHURES, AND NEWSPAPER ADVERTISING.) (qd) Repon_of Oustified Architect or Engineer. Purohsser agrees and acknowledges that the party preparing the Report of the Qualified Architect or Engineer found in the Prospectus is not affiliated with Seller in any fashion, and is a third party, independent contractor employed by Seller to furnish the Report as required by the Florida Condoininium Act. Purchaser is advised to review the report carefully, including all disclaimers set forth herein, Seller doce po adopt or teject any of the conclusions or observations act forth in the Report, which are entirely the work of the suthor theresf. Sciier bas not nereed to do arly of the work suggested or rseomumended in the Report except as expresaly sct forth in the attached Contract . (c) Seller's Reserved Right to Marketing Stmtegy. Seller reserves the right to implement any legal marketing program as decined necessary (o market Units within this project. This includes, but is not limited to, the usa of mode! Units, signs, flags, banners, special on-site events, media advertising, inodifications of model and production Units, etc. Seller also reserves the fight to price Units at the current Markey value in an effort to sell Units. There are other marketing strategicg and incentive plans not noted herein which Seller Teservea the right to implement or discontinue, Purchaser hereby acknowledges Sciler’s right as stated above. (f) Private Street. The street, alleys and driveways located within the overall development are private streets, alleys and driveways and will be maintained by the Association. (g) Estimated Budpet. The Condominium Association budget provided to Purchaser is based on estimated expenses only and may increase or decrease significantly when the actual expenses of the Condominium Association become known. (h) Model Unit/Sales Office. For the purposes of completing the sales promotion of the Condominium and until the sale of alj Units in the Condominium, the Seller, ite successors and assigns, is hereby given the full right and authority to maintain or establish on the Condominium Unit and Coramon Eleinents, such models, sales offices, banners balloons and advertising signs, if any, as Seller May deem necessary in ite sole discretion, together with the right of ingress and egreas to the Common Elements in connection therewith: . Q@) Recording. Purchaser shall not record the Contract in the public records of Palm Beach County, Florida. The recording by Purchaser of the Contract shall constitute a default by Purchaser. G) Captions and Headings. “ Captions and paragraph headings contained in the Contrect are for . convenience -and references only and in no way define, describe, extend or limit the scope or interest of the Contract nor the interest of any provision hereof, -_(k) Clerical Errors. The Purchaser(s) agrec(e), if requested by the Seller, to fully cooperate in Correcting any clerical errors az may appear in the Contraot. (1) Electric. Purchaser further acknowledges that there is a separate meter for cach unit, Therefore, it is the Purchaser's responsibility to tranafer the electrical service to the Unit upon closing, at Purchaser's expense, as it will be disconnected from FalM HILL INVESTMENTS, LLC’S account st that time, withoui prior notice, Arrangements can be made by calling Florida Power & Light company, . . . Nate: Before Purchaser signs this Agreement, Purchaser should read it carefully, Purchaser ls advised that this Agrcement contains references to developer's right to make changes in the offer made to Purchaser (paragraph “35"), references made to certain closing costs (paragraph "6"), and strict limitations on Purchaser's rights ‘pon developer's default (pamgraph “8(b)”). Purchaser ig further advised that the condominium documents contain other important information, including, but not limited to, information respeoting the schedule and other detsils for the tumover of control of the condominium association to unit owners, other than the developer, and the right to cancel certain contracts entered into by the condominium association before control ia transfecred to unit owners, other than the developer. Purchaser acknowledges, warrants and represents that this Purchaser Agreement is being entered into by Purchaser without reliance upon any representations conceming any potential future profit, any rental income potential, tax advantages, depreciation or investment potential and . without reliance upon any other monetary or financial advantage, Purchaser acknowledges that no suob representations have been made by seller . Or any of its agents, employees or Tepresentatives, This page supersedes any previous one. : * __ Uf Purchaser voids this Contract in accordance with this’ provision, Purchaser shall receive a full refund of all Earnest Money collected and held by Eacrow Ageit,"only after Escrow Agent verifies that such Eamest Money has been deposited into Escrow Agent’s escrow account, and that - the sums that bave been deposited have cleared the Escrow Agents’ banking institution. Escrow Agent may demand proof of clearance in the form of a cancelied check or other proof acceptable to Escrow Agent, : Receipt of deposit in the sum of $ is hereby acknowledged by: : Any deposit that was made with a credit card must be replaced with a check within thres (3) days, or this Contract will be subject t0 automatic cancellation by SelJer, without further notice to Purchaser, unless otherwise agreed by Seller. ' ADMINIST RALIVE COMPLAINT . EXHIBIT #o) PAGE 7 OF EXHIBIT. fr __PAGE, Che panhuas, Purchase and Sais Contract 4) ied om Sep.25. 2007 9:42AM oy No-9820 oP. 9 ‘This Contract is gubject to a manager's approval and supersedes any previous contract. PURCHASER BY DELIVERING WRITTEN NOTICE OF THE PURCHASER’S INTENTION TO CANCEL WITHIN FIFTEEN (15) DAYS AFTER THE DATE OF RECEIPT FROM THE SELLER OF ANY AMENDMENT WHICH MATERIALLY ALTERS OR . SELLER; G PURCHASER ! PURCHASER ~ : TITLE: Dae G20 /oF | bu 9 [r2lox | ADMINISTRATIVE COMPLAINT. EXHIBIT +f ——__— AGE OF Initials: Purchaser Purchaser P Le 8 EXHIBIT. PAGE Purchase and Sale Contract 5ep.25. 2007 $:43AM . No-820 P. (0 UNIT # | . DISCLOSURE NOTICE TO PURCHASER CONCERNING CLOSING COSTS AND EMPLOYMENT OF SALES REPRESENTATIVE L At the time of closing, Purchaser will be required to pay, in addition to the balance of the purchase price, the following items: (a) If necessary, a simultaneous mortgagee commitment and policy, in an amount up to the purchass price for an additional $ 150,00 fee and any endorsements required by the Lender st the minimum risk rate. . 0b) Mortgage closing costs, including possible escrows and prepaid interest. (c) Alterations, modifications or extras not previously paid, (d) Two (2) months capital contribution to the working capital af the Association to be paid to the Association. {c) Settlement fee to Closing Agent () Any additional costs which may be incurred by a Purchaser, including, but not mited to: qa) Lender and Purchpser's attorney's fees; Abstracting; Mortgage title insurance; Other insurance required by bank or desired by Purchasert Prorated taxes ‘ Prorated maintenance Credit reporting fers; : Any deposits, installation charges or hook-up fees for utilities; Intangible tax on principal morgage amount, (10) Documentary stamps on the principal mortgage amount (11) Any other charges imposed by Purchaser's lender; and, (12) Any late funding fee due to Developer I The undersigned sales representative is the agent of PALM HILL INVESTMENTS, LLC, a Florida limited liability company, (Seller) and ia being compensated or pid by same for procuring the execution of the Purchaser and Sale Agreement. mae 7 t0/6F Salea Representative: ADMINISTRATIVE COMPLAINE EXHIBIT #2 PAG OF —- EXHIBIT PAGE Pushes . Purchaser Purchase and Sale Contract AL -~ _ APPRAISAL SERVICES OF SOUTH FLORIDA — 17220 SW 77 COURT, PALMETTO BAY, FL. 33157 (305) 251-81 14, (305) 251-8116 fax Chase Home Lending Appraiser Panel Management Re: Appraisal Field Review Report 5060 Palm Hill Dr. #162 West Palm Beach, Florida To Whom. It May Concern: - ; ; I am in receipt of your letter stating that | am being removed from your approved appraisers list based on a review performed on the above described property. : ; Please note the following; The Review appraiser completely ignored the sales inside which were quite numerous and virtually identical to the subject in favor of sales priced at the low end of value range in the area, In_ addition, these sales resulted in significantly larger individual - adjustments which would make them inherently less similar to the subject unit. Is it not part of Chase’s requirements to utilize interior sales when available? How then is. your department so willingly and eagerly ignoring this requirement? It seems to me and is ‘abundantly clear that what Chase is looking for are scapegoats to blame your poor underwriting policies on. The subject Property did not default on your Ioan, a poorly qualified © rrower did. : . Sincerely, Manuel Mendoza-Cardenal 01/04/09 - ADMINISTRATIVE COMPLAINT. . EXHIBIT #2 “RAGE

Docket for Case No: 10-010916PL