APPENDIX 10. INFORMATION COMPILATION CHECKLIST FOR PLANNED REAL ESTATE DEVELOPMENT FULL DISCLOSURE ACT REGISTRATION INTRODUCTION

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1 APPENDIX 10. INFORMATION COMPILATION CHECKLIST FOR PLANNED REAL ESTATE DEVELOPMENT FULL DISCLOSURE ACT REGISTRATION INTRODUCTION The nature of the residential real estate development and/or for-sale project which you or your organization envisions undertaking requires that the project be registered with the Division of Codes and Standards, Bureau of Homeowners Protection of the New Jersey Department of Community Affairs pursuant to the Planned Real Estate Development Full Disclosure Act, N.J.S. 45:22A-21 et seq. ( PREDFDA ) and its implementing regulations, N.J.A.C. 5: et seq. Briefly, in addition to all the municipal, county, state and federal approvals you may be required to obtain in order to construct, refurbish or remodel your project, you must also register the project as set forth in PREDFDA as a condition of your ability to enter into binding contracts for the sale of any parcel, unit or interest to any member of the public. The registration process requires the compilation of a variety of information and exhibits. The purpose of this checklist is to help you assemble those documents and the necessary information which you must provide to us so we can prepare the filing in the required form. We are relying upon your response to be thorough and complete. It is strongly suggested that you provide the information and documentation as they become available, rather than waiting until all or most of the items have been completed. It has been our experience that we can most efficiently process the information when presented in this way. When forwarding something to us, simply note which checklist item you are answering, unless you are returning a copy of the pertinent checklist page with the information completed thereon. Be sure to notify us if you do not have copies of documents which have been recorded, so that we may obtain them for you. GENERAL CHECKLIST 1. Name of project: 2. Street address of project, New Jersey 3. Tax map designation of project lands: Municipality(ies) Block(s) Lot(s) 4. ( ) Fee simple: ( ) Detached ( ) Townhouse ( ) Condominium: ( ) New Construction ( ) Conversion ( ) Cooperative: ( ) New Construction ( ) Conversion 5. Number of parcels or units (by section if applicable):

2 APPENDIX Anticipated completion date of project (by section, if applicable): 7. Full name, principal address, telephone and facsimile numbers and e- mail addresses of Sponsor: 8. Please provide the name, address, telephone number and responsible individual if any of the following professionals have been retained in connection with the project: Accountant: Advertising, Marketing or Promotional Agent: Architect or Engineer: Real Estate Broker: Other Attorneys (specify function): 9. Address of sales office or location where sales and promotional activities will be offered to the public: CHECKLIST FOR HOMEOWNERS, COOPERATIVE OR CONDOMINIUM ASSOCIATION H1.Name: H2.Post Office address of principal offices: Zip Code H3.Name of registered agent: H4. Street address of registered office:

3 INFORMATION CHECKLISTS FOR PREDFDA Zip Code H5. ( ) Incorporated ( ) Unincorporated H6. Initial Trustees (3): Name Address Zip Code (a) (b) (c) H7.If a cooperative corporation, indicate: ( ) Business Corporation ( ) Not-for-Profit Corporation Total shares allocated to apartments: Note: We will prepare and file the Certificate of Incorporation based upon the information provided. Project: PUBLIC OFFERING STATEMENT CHECKLIST P1. The Public Offering Statement for this project must contain a discussion of the community in which the project is located. Supply the names, addresses, approximate distances from the project and such other details as are available for the following community facilities. Distances must be provided in miles and not travel time. Provide information as to the closest available facilities if a particular category is not found within the town or city itself. Your local Chamber of Commerce, Better Business Bureau or Office of Public Affairs of your local government may have materials which will prove useful. (a) Hospitals and health care facilities (closest facilities available if not located within town or city itself; provide approximate # of beds, type of care and services available, etc.); (b) Recreational facilities (natural or manmade, public and private, whether free, by admission charge or by membership, denoting which is the case); (c) Schools (all levels, including nearby colleges; provide name of local school system); (d) Fire and police protection and ambulance service (volunteer or paid); (e) Places of worship; (f) Major highways; (g) Shopping facilities generally (including malls); (h) Access to public transportation/mass transit (airports, buses, trains, taxis);

4 APPENDIX 10 (i) Water supplies; (j) Other places of interest; (k) Drainage controls in flood prone areas. P2. Supply a list of improvements, other than units, which will be installed as part of the project, specifying for each the following: (a) Nature, type and capacity; (b) Estimated date of completion; (c) Whether required as a condition of municipal, county, state or federal approvals; (d) Whether to be dedicated to public use; (e) For common recreational or community facilities, also provide: (i) Plans, if facility not completed; (ii) A general description of types of construction, types of facilities, square footage of buildings and structures and number of stories; (iii) Location within project; (iv) Amenities and fixtures to be supplied by Sponsor; (v) Proposed ownership (Sponsor, Association, 3rd party); (vi) Whether there will be access for the general public. P3. (a) Identify the person or entity who will act as escrow agent for deposit monies pending closing: Name: Address: Telephone: (b) Provide the name and address of the lending institution where the escrow account will be maintained by the escrow agent: P4. (a) Will the Sponsor offer a title insurance policy to the purchaser at the time of closing? (b) Identify the title insurance company whose policy will be offered, and the agent who will issue the policy: Name (Ins. Co.): Name (Agent): Address (Agent): (c) If a policy will be offered, request the issuing agent to forward a sample policy in the form which will be issued to purchasers upon closing, listing all anticipated exceptions. P5. Is any portion of the project subject to regular or periodic forces of nature, such as floods, droughts, earthquakes, mudslides, forest fires and the like?

5 INFORMATION CHECKLISTS FOR PREDFDA (If affirmative, provide all details in writing, including whatever steps have been taken in connection with development of the project to safeguard against such hazards.) P6. Is any portion of the project affected by noise or other pollution from highways, trains, airports, flight paths or heavy industry in the area? (If affirmative, provide all details in writing.) P7. Obtain from the local tax assessor: (a) Tax ratio and rates for past 3 years. (b) Probable assessment against units (by type, if applicable) and common facilities in project. P8. Make inquiry of the local governmental officials about the nature and amount of any pending or proposed special taxes or special assessments which will affect the project, and provide all details in writing. Indicate below whether: ( ) The Sponsor will be responsible for payment ( ) The purchaser will be responsible for payment ( ) Other (specify) P9. Will the purchaser be responsible for any costs of closing beyond the purchaser s attorney s fees or sums payable to a mortgagee (e.g., document preparation fees, mortgage application fee, recordation fees, etc.)? (If affirmative, specify nature and amount of charges in writing.) P10. Supply in writing a list of all developments constructed by the Sponsor, its corporate parent, affiliate or subsidiary, or its predecessor within the past five years within the State of New Jersey or outside New Jersey but within 100 miles of the project site. P11. (a) Supply in writing the nature, types and amounts of insurance which will be provided by the Sponsor or the owners association in respect to the project. Instruct your insurance broker to provide us with the identity of the insurer, policy number and evidence of premium payment as and when placed. (b) Direct your broker to supply a letter which states his opinion as to the adequacy of casualty (as to common elements or common facilities) and public liability insurance to be maintained by the owner s association. P12. If not a conversion, will the Sponsor offer any warranty other than that required by the New Home Warranty-Builders Registration Act for new construction? (If affirmative, supply all details in writing.) Insurance coverage for the required warranty of new construction will be obtained from: ( ) the State Plan ( ) a private plan (identify) Project:

6 APPENDIX 10 CHECKLIST FOR APPLICATION FOR REGISTRATION A1. Is or will the project be registered with another state or the federal government? ( ) No ( ) Yes (specify, with status) A2. The Sponsor is a: ( ) Sole Proprietor: Trade name (if any) (Supply copy of filed Certificate of Trade Name, if any. Complete and return continuation of A2.) ( ) Partnership: Trade name (if any) (Supply copy of Partnership Agreement; filed Certificate of Trade Name, if any. Complete and return continuation of A2.) ( ) Trust: Full name (Supply a copy of Trust Agreement. Complete and return continuation of A2.) ( ) Corporation: State and year of Incorporation Full name Fictitious name (if any) (Supply: copy of Certificate of Incorporation and all amendments; Certificate of Registration of Fictitious Name, if any; Certificate of Authority to conduct business in New Jersey, if applicable. Complete and return continuation of A2.) ( ) Other (specify in detail) (Supply copy of all documentation as to business entity. Complete and return continuation of A2.) A2 (continued) Provide the name, address, interest in the Sponsor, if any, position and principal occupation for the past five years for those managing the business of the Sponsor as follows:* proprietorship principal and agents with authority to sign contracts; partnership all partners and agents with authority to sign contracts; corporation officers and directors; trust trustee, manager and agents with authority to sign contracts; other anyone authorized to bind the business entity. If any such person has any interest in the project other than in the capacity of an interest in the developer, set forth in detail. *Note: If there are more than five persons serving in any of the capacities indicated, restrict your response to the key persons involved with the subject property. (Use extra sheets, as necessary) A3. If the Sponsor is not the record owner of the land on which the project is located, supply a copy of the agreement between the Sponsor and the record owner of title. A4. Name and address of architect, engineer or surveyor who prepared project plans:

7 INFORMATION CHECKLISTS FOR PREDFDA (Supply: metes and bounds description of project or section being registered; four (4) full size and one (1) reduced copy of site plan or location survey or subdivision map signed and sealed by the above; and, a floor plan of each type of unit, typical floor layouts if the project is a condominium or a cooperative with attached units, or consists of a multistory building.) A5. Name of title company insuring title into Sponsor or entity selling project to the public, and address of agent issuing policy: Title policy number: (Supply copy of title policy.) A6. Supply us with copies of the following documents if presently in existence. If you do not have copies, so inform us so that we may obtain copies from the title company: (a) Deed into Sponsor or entity selling project to the public (b) All mortgages and other encumbrances of record (c) All easements or other restrictions upon use of project lands, whether of record or not. A7. (a) The project entails development financing by a lender (details below) ( ) There will be no development financing ( ) Mortgage Broker: Name: Construction Lender: Name: Address: Telephone: Responsible Agent: Closing Attorney: Firm Name: (b) The sponsor will provide permanent financing to purchasers (supply all details in writing) ( ) No permanent financing will be offered to purchasers in connection with the project ( ) The Sponsor will procure permanent financing for purchasers from a lending institution (details below) ( ) Responsible Attorney: Permanent Mortgagee: Name: Address: Telephone: Responsible Officer: Closing Attorney: Firm Name: (Supply copies of all financing commitments and any executed loan documents, if applicable.)

8 APPENDIX 10 A8. Do any of the following types of agreements form an integral part of the project or development scheme? If so, check the appropriate boxes: Planned as part In Existence of project Management of common facilities ( ) ( ) Services (other than utilities) to be provided to the development or residents after completion ( ) ( ) Restrictions (other than zoning or encumbrances of record) on use of any portion of project, including common facilities ( ) ( ) Ingress/egress to or from the project ( ) ( ) Lease of any common elements or common facility wherein owner s association is the lessee ( ) ( ) (If presently existing, supply a copy of each such agreement. If contemplated as part of development scheme, provide all details in writing.) A9. If [this firm] did not represent the Sponsor in obtaining municipal approval of the project, answer or supply each of the following (obtain from your other attorney or engineer): (a) Zoning of project lands: (b) Is project located on border of zones? If so, set forth the other zone(s) and where they abut the project: (c) Supply a current copy of the municipal zoning ordinance. (d) Supply a narrative description of the actual use of all separate land parcels abutting the project, or located across any street bordering the project (e) If the project is not a conversion, supply a list of all municipal, county, state and federal approvals or permits necessary to construct the project, and their current status. If already issued, supply copies of the permits or approvals. (f) If the project is not a conversion, supply a list of all unsatisfied conditions of applicable building site plan, subdivision, Pinelands Review Counsel, CAFRA or other conditional governmental approvals or permits, and their current status. A10. Are you aware of any unusual safety hazards on or in the vicinity of the project site which could affect residents? If so, supply details in writing. A11. List the names of utility companies who will supply the following services, if applicable, to the project (indicating blanket metering, if applicable.) Water Well ( )

9 INFORMATION CHECKLISTS FOR PREDFDA Sewerage Septic ( ) Gas Electric Telephone A12. Supply copies of all proposed printed advertisements, brochures, flyers, radio or television advertising copy, and any other written promotional material of any kind or variety. If you employ or intend to retain an advertising or promotional agent, instruct the agent to supply us with copies of all new prepared materials and provide the agent s identity: Name: Address: Telephone: Responsible Person: NB: Except for test market advertising, no advertising or promotional materials may be disseminated unless the project has been approved for registration. All advertising utilized in connection with a test market application must be approved in advance by the Department of Community Affairs. A copy of the regulations governing advertising is enclosed for your use and reference. Please be sure to forward a copy of these regulations to your advertising or public relations agency for their guidance. A13. Supply a copy of the most recent financial statement of Sponsor or entity selling the project to the public including both balance sheet and profit and loss statement certified by an independent public accountant. If the current fiscal year will close before submission of the Application for Registration, inform your accountant or auditing firm that the financial statement for the current fiscal year must be certified. A14. Has the Sponsor, or its predecessor in the project or principal having a 10% interest in the project (other than limited partners or individuals who are solely investors) been adjudicated a bankrupt in the past 5 years? (If the answer is affirmative, provide all details in writing.) A15. Supply a copy of each of the following: (a) Proposed budget for the owner s association, including reserves for replacement of common facilities, prepared presuming full occupancy of project. (b) Proposed annual assessment and monthly installment of common charges due from each unit (or type of unit, if applicable). (c) Letter attesting to adequacy of reserves, certified by an independent public accountant, or experienced property manager, or other independent expert. (d) If not a conversion, a copy of the budget for the owner s association for its initial fiscal year, together with annual assessment.

10 APPENDIX 10 A16. Has the Sponsor, or any of its officers, directors, shareholders, partners or other principals been convicted of a crime involving any aspect of the real estate business, or been the subject of a permanent injunction or final administrative order restraining a false or misleading promotional plan for the disposition of real property? (If the answer is affirmative, provide all details in writing.) CONVERSIONS C1. Supply a current price list for each lot, parcel, unit or interest to be offered. C2. Supply an audited statement of expenses for the property for the past 5 years, or period of ownership by the Sponsor, whichever is less, certified by a C.P.A. C3. Arrange for an architect or engineer licensed to practice in New Jersey to inspect the project as to all items appearing on the annexed Engineering Survey Outline and prepare a report, in narrative form, as to the condition of all such items. The Outline should be provided and used as a guide in the conduct of the inspection. In addition to those items contained in the Outline, an energy audit, showing the energy efficiency of the building, must be included in the report. Emphasize to the inspecting architect or engineer that the report must contain a good faith estimate of the replacement cost of major structural systems. C4. Supply a list of the units in the building(s), indicating for each unit the following: current monthly rental; monthly cost of utilities if units are separately metered; other expenses relating to habitability paid directly by tenants. C5. Supply the name and address of each tenant or lessee of record. Please be sure to supplement this list if there are any changes prior to submission of the Application for Registration. Indicate below the manner in which the proposed Public Offering Statement will be served upon tenants at the time of submission of the Application for Registration and after the Order for Registration is issued: ( ) The Sponsor will be responsible for such service ( ) A mailing service should be retained at the Sponsor s expense ( ) Other (specify)