DEPARTMENT OF BUSINESS AND PROFESSIONAL REGULATION STATE OF FLORIDA pee frm» 5 FLORIDA DEPARTMENT OF BUSINESS AND PROFESSIONAL REGULATION, DIVISION OF REAL ESTATE | () . 1O¥4 | pL £010 ge “7 Alt 5 Petitioner, Heng ATIVE Vv. Case No. 2009005449 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. G:\LEGAL\probablecause-freab\Manuel Mendoza Cardenal 2009005449 AC.doc 1 FDBPR y. Manuel Mendoza Cardenal Case No. 2009005449 Administrative Complaint 4. On or about July 6, 2007, Respondent developed and communicated an appraisal report (Report) on a property commonly known as 4898 Paulie Court, #58, West Palm Beach, Florida 33415 (Subject Property) . 5. A copy of the Report as obtained from the Respondent 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 only the first page 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; G:\LEGAL\probablecause-freab\Manuel Mendoza Cardenal 2009005449 AC.doc / 2 FDBPR v. Manuel Mendoza Cardenal Case No. 2009005449 Administrative Complaint c) Respondent under date of contract stated, “unknown” and recited that up to $10,074 to be applied to buyer’s closing costs, but the single page of the sales contract has no such provision; da) As to analyzing the contract, Respondent stated, “No unusual conditions noted in the contract provided to the appraiser,” but Respondent only had the first page of the contract; e) 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 G:\LEGAL\probablecause-freab\Manuel Mendoza Cardenal ‘2009005449 AC.doc 3 FDBPR v. Manuel Mendoza Cardenal Case No. 2009005449 Administrative Complaint not personally inspect the interior of the Subject Property as Respondent certified; £) Respondent misstated the age of the Subject Property; g) Respondent misrepresented that the condominium one unit housing trends showed increasing property values and supply/demand in balance, when the market was in decline with an oversupply; h) Respondent should have used the Income Approach to valuation in that the project information clearly disclosed there were 90 +/- units rented; i) The Report is misleading in that there in an oversupply of units beyond the 132 units reported for sale; 3) 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 used 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. G:\LEGAL\probablecause-freab\Manuel Mendoza Cardenal 2009005449 AC.doc 4 FDBPR v. Manuel Mendoza Cardenal Case No. 2009005449 Administrative Complaint 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. 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 G: \LEGAL\probablecause-freab\Manuel Mendoza Cardenal 2009005449 AC.doc 5 FDBPR v. Manuel Mendoza Cardenal Case No. 2009005449 Administrative Complaint 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, 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) mot 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. G:\LEGAL\probablecause-freab\Manuel Mendoza Cardenal 2009005449 AC.doc 6 FDBPR v. Manuel Mendoza Cardenal Case No. 2009005449 Administrative Complaint 18. USPAP Standards Rule 1-6(a) provides, in part, as follows: In developing a real property appraisal, an appraiser must: (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 Standards in developing the Report. G:\LEGAL\probablecause-freab\Manuel Mendoza Cardenal 2009005449 AC.doc FDBPR v. Manuel Mendoza Cardenal Case No. 2009005449 Administrative Complaint 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, 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. G:\LEGAL\probablecause-freab\Manuel Mendoza Cardenal 2009005449 AC.doc 8 FDBPR vy. Manuel Mendoza Cardenal Case No. 2009005449 Administrative Complaint 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. 28. As set forth above, Respondent used 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 61J1-7.001(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 2009005449 AC.doc FDBPR v. Manuel Mendoza Cardenal Case No. 2009005449 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 G day of Tuy , 2010. CHARLIE LIEM, Interim Secretary Department of Business and Professional Regulation By: en 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 Sy Fite DATE 7d A G:\LEGAL\probablecause-freab\Manuel Mendoza Cardenal 2009005449 AC.doc 10 FDBPR y. Manuel Mendoza Cardenal Case No. 2009005449 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 2009005449 AC.doc 11 File No. 00724845] Page #1} 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 #: 00724845 Lender Case #: GREAT COUNTRY MORTGAGE BANKERS Client Fle #: 2850 DOUGLAS ROAD, PENTHOUSE CORAL GABLES, FL 33134 INVOICE [eee a INWOICE NUMBER EES 00724845 Main File # onform: 90724845 Other File#onform: 995-0460427 Telephone Number: Fax Number: Federal Tax ID: 65-0359735 Alternate Number: E-Mail: Employer 1D: e Sen Client: GREAT COUNTRY MORTGAGE BANKERS Lender: GREAT COUNTRY MORTGAGE BANKERS Purchaser/Borrower: O. DESTIN & Y. PRESENDIEU Property Address: 4898 Paulie Ct City: WEST PALM BEACH County: PALM BEACH State: FL Zip: 33415-5672 Legal Description: UNIT 58 BLDG 4898 OF PALM HILL CONDOMINIUM FULL FHA APPRAISAL/PROJECT SUBTOTAL SUBTOTAL ADMIN EXHIBIT # Form NVA PRDTAL! maka software by a Oe, ie HE ae (2 pac HY ppraisat Services ot SUUtr Fiori File No. 00724845 State FL Zip Code_ 33415-5672 TABLE OF CONTENTS Invoice 1 Condo . 2 Additional Comparables 4-6 . 8 Building Sketch (Page - 1) 9 USPAP Identification .. 10 Supplemental Addendum "1 Subject Photos ... 13 Photograph Addendum 14 Comparable Phatos 1-3 Flood Map .. Location Map .. ADMINISTRATIVE COMPLAINT cyuieit #_| Farm TOCNP — “WinTOTAL" appraisal software by a la mode, inc. ~ 1-BO0RAVeM@BS] 7. bb p, At E UY is Appraisal Services of South Florida (305) 251-8114 Page #: Individual Condominium Unit Appraisal Report see oorounae ‘The purpose of this summary appraisal report is to provide the fender/client with an accurate, and adequatel ‘supported, opinion of the market value of the subject property. ny Address 4898 Paulie Ct Unit# 58 City WEST PALM BEACH State FL Zip Code 33415-5672 Borrower O. DESTIN & Y. PRESENDIEU Owner of Public Record PALM HILL INVESTMENTS, LLt County PALM BEACH Lega! Description UNIT 58 BLDG 4898 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 # 4 Map Reference 42-44-11 Census Tract 0040.09 Occupant [_] Owner [_] Tenant ( Vacant Special Assessments $_N/A. HOA $_ 197.00 per year_O<} per month Property Rights Appraised [Xj Fee Simple _[_! Leasehold Other (describe) Assignment Type DX] 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 safe in the twelve months prior to the effective date of this appraisal? (ves No Report data source(s) used, offering price(s), and date(s). PUBLIC RECORDS, DEVELOPER. | Be} did J aid not analyze the contract for sale for the subject purchase transaction, Explain the resutts of the analysis of the contract for sale or why the analysis was not formed. 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. Contract Price $ 167,900 Date of Contract_ UNKNOWN _ Is the property seller the owner of public record? J Yes [_]No Data Source(s) REALQUEST. z 's there any financial assistance (ioan charges, sale concessions, gift or downpayment assistance, etc.) to be paid by any party on behalf of the borower? & yes (1 no If 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 ay factors, Urban BX Suburban Rural Property Values 5X] Increasing Stable - Decfining One-Unit 50% 0 Over 75% [_] 25-75% Under 25% |Demand/Supply [J Shortage > In Balance [_} Over Supply 2-4 Unit 10 % syGrowth [] Rapid XJ Stable Slow [Marketing Time [] Under 3 mths [X] 3-6 mths _{_} Over 6 mths Multi-Family 20% fq Neighborhood Boundaries SUBJECT MARKET IS: LOCATED NORTH OF N 10 AVENUE, SOUTH OF Commercial 10% 4 SOUTHERN BLVD., EAST OF JOG ROAD AND WEST OF CONGRESS AVENUE. 160 Pred. 20 | Other 40 %! 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 [X) Legal Legal Noncanformning ~ Do the zoning regulations permit rebuilding to current density? Yes [J No i] No Zoning (J tlegal (describe) {s the highest and best use of subject property as improved (or as proposed per pians and specifications) the present use? Dd Yes [J No_ If No, describe Utilities Public Other (describe) Public Other (describe) Off-site Improvements - Type Public Private Eectricty x) Water KC) Street PAVED ASPHALT Px C Gas Oo Sanitary Sewer _[X] Alley NONE NOTED im ri FEMA Special Flood Hazard Area Yes _D<| No FEMA Flood Zone_B FEMA Map #_ 12019201658 FEMA Map Date 10/15/1982 Are the utilities and off-site improvements typical for the market area? Yes [_}No If No, describe Are there any adverse site conditions or external factors (easements, encroachments, environmental conditions, land uses, etc.)? Yes No If Yes, describe Data source(s) for project information _ DEVELOPER, CONDOMINIUM DOCUMENTS, REALQUEST Project Description Detached {_} Row or Townh (X Garden {_] Mid-Rise High-Rise Other (describe) General Description, -General Desctiptior Subject Phase if Project Completed *: q # of Stories 2 Exterior Walls CBS # of Units 386 _|# of Phases 1 N/A. # of Elevators 0 Roof Surface SHINGL.|# of Units Completed 386_|# of Units 386 __| # of Planned Units N/A Existing Proposed __|Total # Parking 773 # of Units For Sale 1206 __| # of Units for Sale 206 _|# of Units for Sale N/A. Under Construction Ratio (spaces/units} 2.03/1 _|# of Units Sold 180 _|# of Units Sold 180 _|# of Units Sold N/A. Year Built 1984 Type OPEN _|# of Units Rented 10+-*| # of Units Rented l90+.*| # of Units Rented N/A, Effective Age SYEARS [Guest Parkin ADEQ. _|# of Owner Occupled Units |50__[# of Owner Occupied Units [50 [# of Owner Occupied Units |N/A Project Primary Occupancy Principle Residence Second Home or Recreational Tenant Sy is the developar/bullder in control of the Homeowners’ Association (HOA)? [XJ Yes_{_] No 4 Management Group -_[_] Homeowners’ Association Developer Management Agent - Provide name of management company. Ooes any single entity (the same individual, investor group, corporation, etc.) own more than 10% of the total units in the project? LJ Yes [X}. No It Yes, Describe * PER INFORMATION PROVIDED BY ON-SITE MANAGEMENT OFFICE. 4 Was the project created by the conversion of existing bullding(s) into a condominium? _ DX] Yes No_If Yes, describe the original use and date of conversion, RENTAL APARTMENT COMPLEX CONVERTED TO CONDOMINIUM USE IN 2006. Are the units, common elements, and recreation facilities complete (includinc lanned rehabilitation for a condominium conversion)? Yes No if No, describe is there any commercial space in the project? (J Yes _[X]No_ if Yes, describe and indicate the overall percentage of the commercial space. SOMINMNGED et RAP Paty a et AT Gets 8 aD Freddie Mac Form 465 March 2005 EXHIB Page’ ot 6 nernervonnnce — Eh Enso ul Form 1073 — "win TAL dfpraisal software by-aa-mode, Inc! pata a Fannie Mae Form 1073 March 2005 oo Sapper Fie No 00724845] Pane #3] 095-0460427 Individual Condominium Unit Appraisal Report File # 00724845 Describe the condition of the project and quality of construction. | THE PROJECT IS CONSIDERED TO BE IN OVERALL AVERAGE CONT DITION. 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. ESTIMATED REMAINING ECONOMIC LIFE: 50 YEARS. Describe the common elements and recreational facilities. GREEN AREAS, PARKING LOT, TENNIS COURTS, POOLS, LAUNDRY ROOMS, CABANA Pa BATHS, BASKETBALL COURT, RACQUETBALL COURT. TION Are any common elements leased to or by the Homeowners’ Association? [| Yes _[<] No if Yes, describe the rental terms and options. [J yes [x] No {s the project subject to a ground rent? it Yes, $ pet year (describe terms and conditions) PROJECT INFORM. Are the parking facilities adequate for the project size and tyne? >] Yes_[ | No_lt No, describe and comment on the effect on value and marketability. ' [Tid Bx dic'not analyze the condominium project budget for the current year. Explain the results of the analysis of the budget (adequacy of fees, reserves, etc.), ar why the analysis was not performed. IT IS 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 [<] No___ If Yes, report the charges and describe. [High [x] average [J Lowi Hi Compared to other competitive projects of simfar quality and design, the subject unit charge appears jh or Low, describe PROJECT ANALYSIS Are there any special or unusual characteristics of the project (based on the condominium documents, HOA meetings, or other information) known to the appraiser? Cl yes [BdNo If Yes, describe and explain the effect on value and marketability, a Unit Charge $197.00 per month X 12 2,364.00 per year Annual assessment charge per year per square feet of grass livingarea=$ 2.98 Utilities included in the unit monthly assessment (| None Heat AirConditioning [J] Electricity [Jj Gas 5x] Water EX Sewer (_} Cable Other (describe) Boor # 2ND FLOOR __|Floors None # ofLevels ONE Walls. DRYWALL/GOOD. _|[_] WoodStove(s) # ><] Range/Oven Garage {_] Covered [Xx] Open Heating Type FWA Fuel ELE (Trimv/Finish WOOD/GOOD Deck/Patio IX] Disp_ [7] Microwave _{¥ of Cars 4+ADD. SPACE Dal Central AC _(_] individual AG !Bath Wainscot DRYWALLIGOOD Porch/Balcony {_J Dishwasher Assigned Owned Other (describe) Doors HOLLOW CORE/GD |[_} Other {| Washer/Dryer Parking Space #___ UNKNOWN. Finished area above grade contains: 4 Rooms 2_Bedrooms 4 Bath(s) 792 Square Feet of Gross Living Area Above Grade Are the heating and cooling for the individual units separately metered? (XJ Yes No_If No, describe and comment on compatibility to other projects in the market area. Additional features (special energy efficient items, etc.) | CENTRAL A/C SYSTEM. TION 2 v4 Ci it Describe the condition of the property (including needed repairs, deterioration, renovations, remodeling, etc.). | PER SALES AGREEMENT AND INFORMATION f=] PROVIDED TO APPRAISER BY ON-SITE SALES OFFICE AND SALES REPRESENTATIVE, THE SUBJECT UNIT HAS A NUMBER OF E} UPGRADES SUCH AS; FLOORING, UPGRADED BATHROOM AND KITCHEN AREAS. BASED ON THIS INFORMATION THE SUBJECT UNIT IS CONSIDERED TO 8E IN OVERALL GOOD CONDITION FOR TYPE AND AGE WITH NO FUNCTIONAL INADEQUACIES NOTED. Yes P<] No_ If Yes, describe Are there any physical deficiencies or adverse conditions that affect the livability, soundness, or structural integrity of the property? Does the property generally conform to the neighborhood (functional util i's, condition, use, construction, etc.)? Dd Yes ['] No_ If No, describe did not research the sale or transfer history of the subject property and comparable sales. If not, explain My research did did not reveal any prior sales or transfers of the subject property for the three years prior to the effective date of this appraisal, Data source(s) __ REALQUEST/MLS My research _[_j did _[X) did not reveal any prior sales or transfers of the comparable sales for the year prior to the date of sale of the comparable sate, & Data source(s) __ MULTIPLE LISTING SERVICE/REALQUEST Pe} Report the results of the research and analysis of the prior sale or transfer history of the subject property and comparable sales (report additional prior sales on pag PRIOR SALES IN THE PAST 3 YEARS. Analysis of prior sale or transfer history of the subject property and comparable sales. = ITEM SUBJECT COMPARABLE SALE #1 COMPARABLE SALE #2 COMPARABLE SALE #3 be] Date of Prior Sale/Transter NO PRIOR SALES NO PRIOR SALES: NO PRIOR SALES. NO PRIOR SALES. Ee] Price of Prior Sale/Transfer WITHIN 3 YEARS. WITHIN 3 YEARS. WITHIN 3 YEARS WITHIN 3 YEARS Fj Data Source(s) REALQUEST/MLS REALQUEST/MLS REALQUEST/MLS REALQUEST/MLS Fd Effective Date of Data Source(s) O7/06/07 07/06/07 07/06/07 07/06/07 SUBJECT NOR COMPARABLE SALES HAVE CLOSED OR INDICATE Freddie Mac Form 465 March 2005 Form 1073 — "WinTOTAL" apprai caftware by a fa mode, ine. — 1-B00-AL veer paced 7 spunea wa: [File No. 00724845] Page #4) Individual Condominium Unit Appraisal Report mie oorzasaa 124* comparable properties currently offered for sale in the subject neighborhood ranging in price from $ 124,000 to$ 257,200 There are__144* _ comparable sales in the subject neighborhood within the past twelve months ranging in sale price from $ 107,000 to$ 259,950 SUBJECT COMPARABLE SALE # 1 COMPARABLE SALE # 2 COMPARABLE SALE # 3 Address and 4898 Paulie Ct, # 58 5150 PALM HILL DR. #261 513 SHADY PINE WAY #82 5095 PALM HILL DR., #353 Unit# __ WEST PALM BEACH, FL 33414WEST PALM BEACH, FL 33415-4WEST PALM BEACH, FL. WEST PALM BEACH, FL 33415-9| Project Name and PALM HILL CONDO PALM HILL CONDO PINE RIDGE NORTH | CONDO |PALM HILL CONDO Phase. 4 Proximity to Subject E 4.79 mi les, SW. 0.29 miles NW. Sale Price $ 167,900) a 1s 180,000 Ee Sale Price/Gtoss Liv.Area_($ 214,999. ft i$ 161.43s9. S$ 211.99 sq. Data Source(s) 5 2505| DEVELOPER/INSPECTION PUBLIC RECORDS/OBSERVAT. |[DEVELOPER/INSPECTION Verification Source(s) | CLOSING STATEMENT MLS#:27 18512 CLOSING STATEMENT. VALUE ADJUSTMENTS fo DESCAPTN DESCRIPTION | +(-)$Adlustment | DESCRIPTION | +(-)$ 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 03/15/07 Location RES/MLF/AVG [EQUAL EQUAL EQUAL Leasehoid/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. Faclites GREEN AREAS |EQUAL EQUAL EQUAL Floor Location 2ND FLUAVG. [EQUAL EQUAL EQUAL Fe View RES/MLF/AVG |EQUAL EQUAL EQUAL Fe Design (Stye} GARDEN/AVG, [EQUAL EQUAL EQUAL F Quallty of Construction CBS/AVG. CBS/EQUAL CBS/EQUAL CBS/EQUAL 9 Actual Age 22 YEARS EQUAL 25 YEARS NO ADJ.JEQUAL Fa Condition GOOD GooD GOOD GOOD Fi} Above Grade Total |Bdrms,| Baths | Totat |Bdrms.| Baths Total |Bdrms.| Baths Total | Bdrms.| Baths £4 Room Count 412iij;4]2ii4 412]2 -2,000] 4 | 2 | 4 Fey Gross Living Area 792 sq. ft 792 sq. t 4,115 sq. ft ~10,000) 792 sq, ft. Ks} Basement & Finished NONE NONE NONE NONE Fi} Rooms Below Grade NONE NONE NONE : NONE Fd Functional Utiity GOOD EQUAL EQUAL | EQUAL A Heating/Cooling CENTRAL EQUAL EQUAL ii EQUAL Energy Efficient tems ISTANDARD __|EQUAL EQUAL EQUAL Sarage/Carpo 4+ADD. SPACE |EQUAL 4 OPEN SPAC +3,000| EQUAL PorchyPatio/Dack NO BALCONY [EQUAL BALCONY -1,000| EQUAL UPGRADES _|UPGRADES UPGRADES UPGRADES. Net Adjustment (Tota + X- Is -7,500| [J+ K- i$ -10,0001 [J+ &- |s -7,500 Adjusted Sale Price Net Ad, = 4.5% Net Ad. = 5.6 % NetAd, 45 % of Comparables Gross Adj. 45 %/$ 160,400/Gross Ad|, 8.9 %|$ 170,000|Gross Adj, 4.5 %|$ 160,400, Summary of Sales Comparison Approach DUE TO THE FACT THAT SUBJECT PROJECT HAS JUST BEEN RECENTLY OFFERED FOR SALE TO THE PUBLIC, FEW RECENT SALES WITHIN HAVE TAKEN PLACE. THE APPRAISER CONSIDERED ALTERNATE CONDOMINIUM PROJECTS IN SIMILAR NEIGHBORHOODS AND MARKETS. TWO SUCH UNITS WERE FOUND THAT MOST ADEQUATELY SUPPORT AN 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 LOCATED WITHIN THE GENERAL MARKET AREA AND NO LOCATIONAL ADJUSTMENTS APPEAR TO BE WARRANTED. THE FINAL VALUE ESTIMATED WAS CALCULATED ON A WEIGHTED AVERAGE TAKING INTO CONSIDERATION SIMILARITIES TO SUBJECT UNIT IN TERMS OF DESIGN, APPEAL, AGE AND CONDITION. INFORMATION REGARDING UPGRADES FOR SUBJECT WAS PROVIDED BY ON-SITE SALES OFFICE AND APPRAISER 1S RELYING ON THIS INFORMATION AND MAKING THE EXTRA-ORDINARY ASSUMPTION THAT SAID DATA !S z INAPPLICABLE. Ii Indicated Value by: Sales Comparison Approach$ 168,000 Income Approach {if developed) $ N/A * REPRESENTS LISTINGS OF CONDOMINIUM UNITS OF 2 BEDROOM COUNT. This appraisal is made [x] "as is", [_] subject to completion per plans and specifications on the basis of a hypothetical condition that the Improvements have been completed, subject to the following repairs or alterations on the basis 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 |S A COMPLETE APPRAISAL IN A SUMMARY FORMAT. INTENDED USER OF THIS REPORT !S CLIENT AND HUD. SEE LIMITING CONDITIONS. Based on a complete visual in tspection of the interior and exterior areas of the subject cal be scope of work, statement of assumptions and limiting conditions, and appraiser's certification, my (our) opinion of the market value, as defined, of the real property that is the suiect of this report is $168,000 as of, JULY ore 2007 is roa pegtion A RECONCILIATION * “Fannie Mae Form 1073 March 2005 Freddie Mac Form 465 March 2005 Page 3 0f6 EXHIBIT #] penn Form 1073 — "WINTOTAES pnp stare la rote ne at Pei PAGE { ys i a 2 . bee ceed eee eee iFile No. 00724845] Page #5] 095-0460427 Individual Condominium Unit Appraisal Report ries oov2aaas 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 repart form is not designed to report an appraisal of a manufactured home or a unit in a cooperative project. This appraisal report is subject to the following scope of work, intended use, intended user, definition of market value, statement of assumptions and limiting conditions, and certifications. Modifications, additions, or deletions to the intended use, intended user, definition of market value, or assumptions and limiting conditions are not permitted. The appraiser may expand the scope of work to include any additional research or analysis necessary based on the complexity of this appraisal assignment. Modifications or deletions to the certifications are also not permitted. However, additional certifications that do not constitute material alterations to this appraisal report, such as those required by law or thase related to the appraiser's continuing education or membership in an appraisal organization, are permitted. SCOPE OF WORK: The scope of work for this appraisal is defined by the complexity of this appraisal assignment and the reporting requirements of this appraisal report form, including the following definition of market value, statement of assumptions and limiting conditions, and certifications. The appraiser must, at a minimum: (1) perform a complete visual inspection of the interior and exterior areas of the subject unit, (2) inspect and analyze the condominium project, (3) inspect the neighborhood, (4) inspect each of the comparable sales from at least the street, (5) research, verify, and analyze data 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 welt 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 already involved in the property or transaction. Any adjustment should not be calculated on a mechanical dollar for dollar cost of the financing or concession but the dollar amount of any adjustment should approximate the market's reaction to the financing or concessions based on the appraiser's judgment. STATEMENT OF ASSUMPTIONS AND LIMITING CONDITIONS: The appraiser's certification in this report is subject to the following assumptions and limiting conditions: 1. The appraiser will not be responsible for matters of a egal 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 wilt 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 (ar other data sources) and has noted in this appraisal report whether any portion of the subject site is located in an identified Special Flood Hazard Area. Because the appraiser is not a surveyor, he or she makes no guarantees, express or implied, regarding this determination. 4. The appraiser will not give testimony or appear in court because he or she made an appraisal of the property in question, unless specific arrangements to do so have been made beforehand, or as otherwise required by law. 5. The appraiser has noted in this appraisal report any adverse conditions (such as needed repairs, deterioration, the presence of hazardous wastes, toxic substances, etc.) observed during the inspection of the subject property or that he or she became aware of during the research involved in performing this appraisal. Unless otherwise stated in this appraisal report, the appraiser has no knowledge of any hidden or unapparent physical deficiencies or adverse conditions of the property (such as, but not limited to, needed repairs, deterioration, the presence of hazardous wastes, toxic substances, adverse environmental conditions, etc.) that would make the property less valuable, and has assumed that there are no such conditions and makes no guarantees or warranties, express or implied. The appraiser will not be responsible for any such conditions that de exist or for any engineering or testing that might be required to discover whether such conditions exist. Because the appraiser is not an expert in the field of environmental hazards, this appraisal report must not be considered as an environmental assessment of the property. 6. The appraiser has based his or her appraisal report and valuation conclusion for an appraisal that Is subject to , satisfactory completion, repairs, or alterations on the assumption that the completion, repairs, or alterations of the subject property will be performed in a professional manner. ADMINISTRATIVE COMPLAINT up ht. Page 4 of 6 Fannie Mae Form 1073 March 2005 BIT # Fam id?ds-FNinTOTAL* Freddie Mac Form 465 March 2005 i software fy fa made, ne. — 1-800-ALAMODE le pace! 4 File No, 00724845] Page #6] 095-0460427 Individual Condominium Unit Appraisal Report —_rie# oo7zaeas APPRAISER’S CERTIFICATION: The Appraiser certifies and agrees that: 1. | have, at a minimum, developed and reported this appraisal in accordance with the scope of work requirements stated in this appraisal report. 2. | performed a complete visual inspection of the interior and exterior areas of the subject property. | reported the condition of the improvements in factual, specific terms. | identified and reported the physical deficiencies that could affect the livability, soundness, or structural integrity of the property. 3. | performed this. appraisal in accordance with the requirements of the Uniform Standards of Professional Appraisal Practice that were adopted and promulgated by the Appraisal Standards Board of The Appraisal Foundation and that were in place at the time this appraisal report was prepared. 4. | developed my opinion of the market value of the real property that is the subject of this report based on the sales comparison approach to value. | have adequate comparable market data to develop a reliable sales comparison approach for this appraisal assignment. | further certify that | considered the cost and income approaches to value but did not develop them, uniess otherwise indicated in this report. 5. | researched, verified, analyzed, and reported on any current agreement for sale for the subject property, any offering for sale of the subject property in the twelve months prior to the effective date of this appraisal, and the Prior sales of the subject property for a minimum of three years prior to the effective date of this appraisal, unless otherwise indicated in this report. 6. | researched, verified, analyzed, and reported on the prior sales of the comparable sales for a minimum of cne year prior to the date of sale of the comparable sale, unless otherwise indicated in this report. 7. | selected and used comparable sales that are locationally, physically, and functionally the most similar to the subject property. 8. | have not used comparable sales that were the result of combining a land sale with the contract purchase price of a home that has been built or will be buitt on the land. 9. | have reported adjustments to the comparable sales that reflect the market's reaction to the differences between the subject property and the comparable sales. 10. | verified, from a disinterested source, all information in this report that was provided by parties who have a financial interest in the sale or financing of the subject property. : 11. | have knowledge and experience in appraising this type of property in this market area. 12. | am aware of, and have access to, the necessary and appropriate public and private data sources, such as multiple listing services, tax assessment records, public land records and other such data sources for the area in which the property is located. 13. | obtained the information, estimates, and opinions furnished by other parties and expressed in this appraisal teport 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, all 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 persona! 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, coior, religion, sex, age, marital status, handicap, familia! status, or national origin of either the prospective owners or occupants of the subject property or of the Present cwners 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 | Telied on significant real property appraisal assistance from any individual or individuals in the performance of this appraisal or the preparation of this appraisal report, | have named such individual(s) and disclosed the specific tasks performed in this appraisal report. | certify that any individual so named is qualified to perform the tasks. | have not authorized anyone to make a change to any item in this appraisal report; therefore, any change made to this appraisal is unauthorized and | will take no responsibility for it. 20. | identified the lender/client in this appraisal gapanh wha dete Artyiciyal, prpapization sorsggent for the organization that ordered and will receive this appraisal report. Fannie Mae Form 1073 March 2005 Form 1073 ~~ "WinTOTAL" appraisal software by aa mode, Inc, — 1-800-ALAMODE Ss . O EXHIBIT b PAGE. Y Freddie Mac Form 465 March 2005 095-0460427 File # 00724845 Individual Condominium Unit Appraisal Report 21, The lender/client may disclose or distribute this appraisal report to: the borrower, another lender at the request of the borrower, the mortgagee or its successors and assigns; mortgage insurers; government sponsored enterprises; other secondary market participants; data collection or reporting services; professional appraisal organizations: any department, agency, or instrumentality of the United States; and any state, the District of Columbia, or other jurisdictions: without having to obtain the appraiser's or supervisory appraiser's (if applicable) consent. Such consent must be obtained before this appraisal report may be disciosed or distributed to any other party (including, but not limited tc, the public through advertising, public relations, news, sales, or other media). 22. | am aware that any disclosure or distribution of this appraisal report by me or the lender/client may be subject to certain laws and regulations. Further, | am also subject to the provisions of the Uniform Standards of Professional Appraisal Practice that pertain to disclosure or distribution by me. 23. The borrower, another lender at the request of the borrower, the mortgagee or its successors and assigns, mortgage insurers, government sponsored enterprises, and other secondary market participants may rely on this appraisal report as part of any mortgage finance transaction that involves any one or more of these parties. 24. If this appraisal report was transmitted as an “electronic record” containing my “electronic signature,” as those terms are defined in applicable federal and/or state laws (excluding audio and video recordings), or a facsimile transmission of this appraisal report containing a copy or representation of my signature, the appraisal report shall be as effective, enforceable and valid as if a paper version of this appraisal report were delivered containing my original hand written signature. 25. Any intentionat or negligent misrepresentation(s) contained in this appraisal report may result in civil liability and/or criminal penalties including, but not limited to, fine or imprisonment or both under the provisions of Title 18, United States Code, Section 1001, et seq., or simifar 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 Teport was prepared. 5. if this appraisal report was transmitted as an "electronic record” containing my “electronic signature,” as those terms are defined in applicable federal and/or state laws (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 21012 SW 97 PLACE, CUTLER BAY, FL., Company Address 33489 Telephone Number 305 2518114 Telephone Number Email Address mmendoza@appraisingsouthfiorida.com Date of Signature and Report OCTOBER 3, 2007 Effective Date of Appraisal JULY 6TH, 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 FL Expiration Date of Certification or License State # 41/30/2008 ADDRESS OF PROPERTY APPRAISED 4898 Paulie Ct, # 58 WEST PALM BEACH, FL 33415-5672 Expiration Date of Certification or License SUBJECT PROPERTY Did not inspect subject property (2 Did inspect exterior of subject property from street Date of Inspection 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 (J Did not inspect exterior of comparable sales from street Company Address 2850 DOUGLAS ROAD, PENTHOUSE, CORAL GABLES, FL 33134 Spe Abate Email Address ramor09@yahoo.com PES Freddie Mac Form 465 March 2005 Did inspect exterior of comparable sales from street Date of inspection TRATIVE COMPLAIND Form 1073 — "WinTOTAL" appraisal software by a la mode, inc, — 1-800-ALAMODE ( emisit__2 pac Ft 095-0460427 Individual Condominium Unit Appraisal Report File # 00724845 FEATURE SUBJECT COMPARABLE SALE #4 COMPARABLE SALE #5 COMPARABLE SALE #6 Address and 4898 Paulie Ct, #58 5090 PALM HILL DRIVE #196 [3545 FOREST HILL BLVD. #13 15015 PALM HILL DRIVE #267 Unit# __WEST PALM BEACH, FL 33414WEST PALM BEACH, FL 33415-9 WEST PALM BEACH, FL. WEST PALM BEACH, FL 33415-9 Project Name and PALM HILL CONDO. PALM HILL CONDO ROSEMONT CONDOMINIUM — [PALM HILL CONDO Phase 4 Proximity to Subject 4,31 miles E Sale Price Se S/S 210,000) Sale Price/Gross Liv. Area 188.34 sq. Lee Data Source(s) PUBLIC RECORDS/OBSERVAT. Verification Source(s} MLS#:R2779204 CLOSING STATEMENT VALUE ADJUSTMENTS: +()$ Adjustment | DESCRIPTION | +() $ Adjustment | DESCRIPTION | +: fi Sales or Financing CASH FHA FINANCE Concessions -7,500|NONE NOTED. YES -7,500 Date of Sale/Time 04/20/07 07/27/07, Pa Location RES/MLFIAVG [EQUAL RES/MLF/GAT -2,000] EQUAL Fa} Leasehold/Fee Simple FEE SIMPLE [FEE SIMPLE FEE SIMPLE FEE SIMPLE fe] HOA Ma, Assessment 197.00 _ [EQUAL 1223.00 EQUAL F4 Common Elements POOLS/LDRY R|EQUAL EQUAL EQUAL fej and Rec. Facies GREEN AREAS |EQUAL EQUAL EQUAL 3 Floor Location 2ND FUAVG. |EQUAL 4ST FLIAVG. NO ADJ.|1ST FL/AVG. Fi View RES/MLF/AVG [EQUAL EQUAL EQUAL Fd Design (Style) GARDEN/AVG. [EQUAL EQUAL EQUAL Fey Quality of Construction CBS/AVG. CBS/EQUAL CBS/EQUAL JCBS/EQUAL bed Actual Age 22 YEARS EQUAL 2 YEARS) EQUAL Ey Condition GOOD Good VERY GOOD} -10,000|G00D ‘Above Grade Total [Bcrms.| Baths | Total [Bams.| Baths Total [Berms.| Baths Total ee ae Room Count 4t2i;atate2ti 4;212 =2,000] Gross Living Area 792 sq. ft. 792 sq. ft, 4,115 sq. ft 8,000] 792 sq. ft Basement & Finished NONE NONE NONE NONE Rooms Below Grade NONE NONE NONE NONE | Functional Utilty GOOD EQUAL EQUAL EQUAL Heating/Cooling CENTRAL EQUAL EQUAL EQUAL Energy Efficient items STANDARD [EQUAL EQUAL EQUAL Garage/Carport 1+ADD. SPACE EQUAL EQUAL EQUAL Porch/Patio/Deck NO BALCONY _|EQUAL BALCONY ___-1,000/EQUAL UPGRADES [UPGRADES UPGRADES C+ - Net Ad. 11.0 % 5 mS 460,400/Gross Adj. 11.0 %|$ ,_ 4: Report the results of the research and analysis of the prior sale or rTanster history of the subject property and comparable sales (report additional prior sales on page 3). TEM SUBJECT COMPARABLE SALE #4 | COMPARABLE SALE #5 COMPARABLE SALE #6 Date of Prior Sale/Transter NO PRIOR SALES NO PRIOR SALES NO PRIOR SALES NO PRIOR SALES FS Price of Prior Sale/Transter WITHIN 3 YEARS WITHIN 3 YEARS WITHIN 3 YEARS WITHIN 2 YEARS Fey Data Source(s) REALQUEST/MLS REALQUEST/MLS REALQUEST/MLS REALQUEST/MLS Ha] Eifective Date of Data Source(s) {07/06/07 40/02/07 10/02/07 40/02/07 = Analysis of prior sale or transfer history of the subject property and comparable sales Analysis/Comments ANALYSIS/COMMENTS ——ASMINISTRATI EXEUBIT # PAGE Form 1073.(AC) — *WinTOTAL* appraisal software ee I A Freddie Mac Form 465 March 2005 Fannie Mae Form 1073 March 2005 mode, inc, —1-800-ALAMODE sma _paceS2 [Page #3] Building Sketch Borrower/Client__O. DESTIN & Y. PRESENDIEU Property Address 4898 Paulie Ct City WEST PALM BEACH County PALM BEACH State FL. Zip Code _33415-5672 Lender GREAT COUNTRY MORTGAGE BANKERS BEDROOM LIVING ROOM DINING AREA 3 BEDROOM KITCHEN ENTRANCE ‘Sketch by Apex Comments: AREA CALCULATIONS SUMMARY LIVING AREA BREAKDOWN Code Description Net Size net Totats_| Breakdown ‘Subtotals GLAL First Floor 792.0 792.0 First Floor . 24.0 x 33.0 792.0 Net LIVABLE Area (Rounded) 792 1 Item (Rounded) 792 ADMINISTRATIVE COMPLAING EXHIBIT # ee ; } ae _ Form SKT.BidSkl — *WinTOTAL® appraisal SoHware by a la mode, re — OLA OS 6 PAGE S 3 [Fite No. 607248451 Page #17 Supplemental Addendum File No. 00724845 Borower/Glient__O. DESTIN & Y. PRESENDIEU Property Address 4898 Paulie Ct ci WEST PALM BEACH County PALM BEACH State FL. _Zip Code 33415-5672 Lender GREAT COUNTRY MORTGAGE BANKERS Comments 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 will 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, mechanicai 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 required 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 Descrigticn/seetinn: anche Tssesso s(Pareehhos, fo No., any other relevant information is also described throughout ee R aN ht dit oe pea i ~ ¢, — 1-800-ALAMODE a nO _paceS4f Supplemental Addendum Borower/Glient_ O. DESTIN & Y. PRESENDIEU. Address_ 4898 Paulie Ct WEST PALM BEACH County PALM BEACH State FL Zip Code_33415-5672 GREAT COUNTRY MORTGAGE BANKERS File No,00724845, 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 componenis/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 value is; Single Family Residential, ___2-4 Family, _X____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. Digitat 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 lower or higher than the estimate of market value does not indicate an adverse condition for the subject property. ADMINISTRATIVE COMPLAINT, EXHIBIT # PAGE Form TADD — “WinTOTAL" appraisal software by a la made, inc. — 1-800-ALAMODE Lb EXHIBIT. pace 5 [File No. 00724845] Page #13 Subject Photos Borrower/Client__O. DESTIN & Y. PRESENDIEU. Property Address_4898 Paulie Ct Cit WEST PALM BEACH County PALM BEACH State FL Zp Code_33415-5672 GREAT COUNTRY MORTGAGE BANKERS Subject Front 4898 Paulie Ct, #58 Sales Price 167,900 Gross Living Area 792 Total Rooms 4 Total Bedrooms 2 Total Bathrooms 1 Location RES/MLF/AVG View RES/MLF/AVG Site Quality CBS/AVG. Age 22 YEARS Subject Rear Subject Street INISTRATIVE COMPLAINT _ Form PICPIX.SR — “WinTOTAL* anpraisal software by ala mode, in. —- 1-800-ALAMODE ; 3 fs b : EXHIBIT. PAGE, — Sia 2 J RR = oe File No. 00724845] Page #14] Photograph Addendum Borrower/Client__O. DESTIN & Y. PRESENDIEU Property Address_4898 Paulie Ct City WEST PALM BEACH County PALM BEACH State FL Zip Code_ 33415-5672 Lender GREAT COUNTRY MORTGAGE BANKERS. POOL RACQUETBALL COURT Comments: Comments: SALES OFFICE TENNIS COURT Comments: Comments: Form PICFOUR — "WinTOTAL" appraisal software by a la mode, inc. — 1-800-ALAMODE EXHIBIT, 6 PAGES Comparable Photos ## Borrower/Client_ O. DESTIN & Y. PRESENDIEU Address_4898 Paulie Ct WEST PALM BEACH County PALM BEACH State FL. Dp Code 33415-5672 Lender GREAT COUNTRY MORTGAGE BANKERS Comparable 1 5150 PALM HILL DR. #261 Prox.to Subject 0.29 miles NW Sales Price 167,900 Gross Living Area.) 792 Total Rooms 4 Total Bedrooms 2 Total Bathrooms 1 Location EQUAL View EQUAL Site Quality CBS/EQUAL Age EQUAL Comparable 2 513 SHADY PINE WAY #82 Prox. to Subject 1.79 miles SW Sales Price 180,000 Gross Living Area 1,115 Total Rooms 4 Total Bedrooms 2 Total Bathrooms 2 Location EQUAL View EQUAL Site Quality CBS/EQUAL Age 25 YEARS Comparable 3 5095 PALM HILL OR., #353 Prox. to Subject 0.29 miles NW Sales Price 167,900 Gross Living Area = 792 Total Rooms 4 Total Bedrooms 2 Total Bathrooms = 4 Location EQUAL View EQUAL Site Quality CBS/EQUAL Age EQUAL ADMINISTRATIVE COMPLAINT EXHIBIT # Mane IS” . ne ee Fe amen sr Form PICPIX.CR — "WinTOTAL* appraisal software by a la mode, -800-ALAMODE b enrneene EXHIBIT. PAGED & Address_4898 Paulie Ct WEST PALM BEACH County PALM BEACH State_FL Zip Code 33415-5672 GREAT COUNTRY MORTGAGE BANKERS Comparable 4 5090 PALM HILL DRIVE #196 Prox. to Subject 0.23 miles NW Sales Price 187,900 Gross Living Area = 792 Total Rooms 4 Total Bedrooms 2 Total Bathrooms 1 Location EQUAL View EQUAL Site Quality CBS/EQUAL Age EQUAL Comparable 5 3645 FOREST HILL BLVD. #13 Prox. to Subject 1.31 miles E Sales Price 210,000 Gross Living Area 1,415 Total Racms 4 Total Bedrooms 2 Total Bathrooms 2 Location RES/MLF/GAT View EQUAL Site Quality CBS/EQUAL Age 2 YEARS} Comparable 6 5015 PALM HILL DRIVE #267 Prox. to Subject 0.26 miles NW Sales Price 167,900 Gross Living Area 792 Total Rooms 4 Total Bedrooms 2 Total Bathrooms 4 Location EQUAL View EQUAL Site Quality CBS/EQUAL Age EQUAL c an wa {i SAGE Form PICPIX.CR — "WinTOTAL" appraisal software by ala mode, inc. — 1-800-ALAMODE 6 £ G EXHIBIT___—"___PAGE, Flood Map Q. DESTIN & Y. PRESENDIE! 4898 Paulie Ct WEST PALM BEACH County PALM BEACH State_FL Zip Code 33415-5672 Lender GREAT COUNTRY MORTGAGE BANKERS Prepared for: InterFlood rd Appraisal Services of South Florida EBS” by a la moce 4898 Paulie Ct www.interflood.com « 1-800-252-6633 WEST PALM BEACH, FL 33415-6672 For more information about j| flood zones and flood | insurance, contact: Powered by FloodSource 877.77. FLOOD f_ wow floodsource.com STRATIVE COMPLAINT, we | exuiait + Form MAP.FLOOD — *WinTOTAL" appraisal software by a la mode, inc. — 1-800-ALAMODE b EXHIBIT, pron Bay ry Fe F | a E Zip Code_33415-5672 ait Oo pare | State FL EXHIBIT, 1-800-ALAMODE t t 6 026 miles NW Comparable 15 PALM HILL DRIVE #1257 oe se Subject 4898 Paulie Ct =| r Pie ooaag | Location Map County PALM BEACH GREAT COUNTRY MORTGAGE BANKERS h. 2BE aa dgng 29 miles NW O29 miles NY 8, Comparable #1 S150 PALMA HILL D Comparable 95 PALMHILL DR. E Form MAP.LOG — "WinTOTAL" appraisal sottWare-by ala motel WEST PALM BEACH Address_4898 Paulie Ct Borrower/Glient__O©. DESTIN & Y. PRESENDIEU No. Page #10) Appraisal Services of South Florida (305) 251-8114 Borower/Clent_O. DESTIN & Y. PRESENDIEU File No. 00724845 Property Address 4898 Paulie Ct Gity WEST PALM BEACH County PALM BEACH State FL__Zip Code 33415-5672 Lender GREAT COUNTRY MORTGAGE BANKERS This Appraisal Report is one of the following types: Seif Contained (A written report prepared under Standards Rule 2-2(a) , persuant to the Scope of Work, as disclosed elsewhere in this report.) DX] Summary (A written report prepared under Standards Rule 2-2(b) , persuantto 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 Scape af Work, as disclosed elsewhere in this report, restricted to the stated intended use by the specified client or intended user.) seen ne 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 analyses, 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. ~T have no blas 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 Feporting 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 develaped and this report has been prepared, in conformity with the Uniform Standards of Professional Appraisal Practice, ~ Thave {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 ara exceptions, the name of each Individual providing significant ‘eal 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: APPRAISER: SUPERVISORY APPRAISER (only if required): Signature: Signature: Name: MAN' Le Name: Date Signed: ER 3, 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 or License: 11/30/2008 Expiration Date of Certification or License: Supervisory Appraiser inspection of Subject Property: Effective Date of Appraisal: JULY 6TH, 2007 POM ER DENG PCT eer RY Frevior and Exterior EXHIBIT ¢: Form 1D06— *WinTOTAL* appraisal Softee by ame 3 ODE EXHIBIT. PAGE [: 2 Jul 10. 2007) 2:38PM . No-9132 cay ~, ur ws ww EPRESENTATION CANNOT BE RELIED UPON AS CORRECTLY STATING THE REPRESENTATIONS OF THE DEVELOPER? FOR CORRECT REPRESENTATION, REFERENCE SHOULD BE MADE TO TH)$ CONTRACT AND THE DOCUMENTS REQUIRED BY SECTION 718,503, FLORIDA STATUTES, TO BE FURNISHED BY A DEVELOPER TO A PURCHASHER OR LESSEE. FORP d PALM HILL, A CONDOMINIUM + Sclier/Developer. § PALM HILL INVESTMENTS, LLC, a Plorida limited liabillty company : Purchase OO4NGE PEsTin YvEY PRESEWTHEU Social Seourity #: {SB - O8-FAI2 social Scewrry s: IVO*YFMLI varius sews: S(MECE Contract Date: MeiingAdéress: (WA Lal LIME STREET bhutan, FL S762 Home Phone; Work Phone: Cell: -~¥44 Condominium Address: PAH AAULIE CoutT #58 W.AB, £L BBYS .. oO OE was . Closing Date: UPON REC of subject to Paragraph 29 (whichevos lé fatcr) In considevation of the purchase price speatficd below, the mutual covenants and benefits provided for herein and other good and valuable consideration, the receipt and sufficlency of which is hereby acknowledged by the poties hereto, the panies hereto do hereby agree as follows: 1. GENPRAL, Seller aprecs to seil, and Purchaser agrees 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 fbr PALM HILL, A CONDOMINIUM, which is or shal! be recorded in «he public records of Miami-Dade County, Florida. The Unit, together with lis percentage of undivided imerest in the Common Elements of the Condominiura, is more particularly described in the Decloration. The Unit shall be purchased for the purchase prica snd under the lenns and conditions soi forth below and elsewhere in this Costract. s_ 144 400 ———<${—“-“— 5 5 Deposit Made This Date: . s Additlonat Deposit Due on: < 3 Proceeds of “Morgage Losn’, if any. So Balance Due at Closing: ...ssesssceeee am) Momhly Condominium Maintenance Charge....-..0-..1 Contribution to Condominium Working Capita! Fund... 2.° PURCHASE PRICE, The woial purchaso price of the Unit shall be as set forth in Paragraph | above, and shall be psid as follows: _ (a) All deposits made by Purchaser under Paragraph J (“Eamest Money”) stall be consideration for Seller reserving the Unit for Purchaser. Notwithstanding anything to tho contrary herein, nono of the monies received by Seller for upgrades to Ye Unit, if my, shall be deemed Eamest Money within the meaning of thir Paragraph 2 of the Contract. Tha Eamest Money shall be deposited in the Escrow Account of Great Country Title Services Corp. (“Escrow Agent”) pursuant to Section 713.202, Florida Statutes and an Escrow Agreement between Seller and Escrow Agent Such Escrow Account shall be designated for the deposit of earnest monties received by the Setler with respect to units within PALM HILL, A CONDOMINIUM, and shail not be commingled with any other funds of the Seller. The mafling addreas of the Escrow Agent ie P. * 2850 Douglas Road, Suite 400, Coral Gables, FL 33134, All notices and clans of Purcheser with respect to the aforesaid escrow deposits shall . bo sent to the Escrow Agent at its addreas set forth above. Escrow Agent shall give Purchaser a receipt for his deposit upon his request. If Purchaser terminates this Contract without defaulting, Seller shall rofisnd alt deposits. Unless specifically act forth hesein to the contrary, any and alt interest earned on escrow funds shall be paid to Developer and ghall bo deemed the Developer’s sole property, If Purchaser defaults, Seller shall be entitled to retaln ell deposits together with any interest actually accrued thereon. Purchaser will be required to authorize disbursement of eacrowed funda by the Escrow Agent to Seller st closing. Prior \o dicbursing Earnest Money in the event of » defaul hereunder, Escrow Agent shall give a)! partics (15) days novice, stating to whom the disbursement will bo made. Any party may object in writing (0 the disbursement, provided the objection i received by Esorow Agent prior to tho end of the fifteer (15) day notice period. All objections not ralsed in a timely manger shall be waived, In the event « timely objoction is made, Escrow Agent shall consider tha objection and shall do any or a combination of the following: (i) hold the Earnest Money for @ reasonable period of time to give the parties an opportunity to resolve the dispute; (ji) disburse the Earnest Monty snd so notify all panies; and/or (Ill) interplead the Bamest Money Into a coun of competent jurisdiction. Escrow Agent shall be reimbursed for and may deduct from any funds interpleaded its costs and expenses, tncloding aromey's fees." The prevailing party in the interpleoder action shal! be entitled to collect from the other party the caste and expenses reimbursed to Escrow Agent. No party shall seek damages from Escrow Agent (nor ahall Escrow Agent bo liable for the same) for any matter arising out of of related to the performance of Escrow Agent's dutics under this Earnest Money paragraph. 2 a: +) 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 Pe West Palm Beach, Florida “To Whom It May Concern: | I am in receipt of your letter stating that I 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 Jarger. 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 requirément? I¢ 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 defaalt on your loan, a poorly. qualified borrower did. ; . ; ; : ; Sincerely, . Manuel Mendoza-Cardenal 01/04/09" ‘ _AOMINISTRATIVE — EXHIBIT 2 3 COMPLAIN, - : Oe ; \ - ; 5 : ~ LIGIHXS

Docket for Case No: 10-010917PL