SUBDIVISION DISCLOSURE REPORT. FOR Lot 1, Villagio at Dove Valley Ranch

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1 Arizona Department of Real Estate (ADRE) Development Services Division PHOENIX OFFICE 2910 N. 44 th STREET STE-100 PHOENIX, AZ JANICE K. BREWER GOVERNOR JUDY LOWE COMMISSIONER SUBDIVISION DISCLOSURE REPORT (PUBLIC REPORT) FOR Lot 1, Villagio at Dove Valley Ranch aka Villagio at Dove Valley Ranch Registration No. DM SUBDIVIDER DV Development, LLC 706 E. Bell Road, Suite 212 Phoenix, AZ Effective Date :DECEMBER 16, st Amendment : OCTOBER 9, 2013 DISCLAIMER This report is NOT A RECOMMENDATION NOR AN ENDORSEMENT by the State of Arizona of this land. The Department has not subjected the application and public report to a detailed examination. The subdivider prepared the report and the Department has verified none of the information in this report; the Department has accepted all the information as true and accurate based on attestation of the subdivider/or the subdivider s agents. The purchaser should verify all facts before signing any documents. The Department assumes no responsibility for the quality or quantity of any improvement in this development. FORM P 1

2 Index Location Page 5 Topography Page 5 Flooding and Drainage Page 5 Soils and Geological Hazards Page 5 Adjacent Lands and Vicinity Page 6-8 Proposed Pipelines N/A Military Airports/Installations Page 9 Public Airports Page 9 Utilities Page 9-11 Streets, Roads and Drainage Page 12 Common, Community and Recreational Facilities Page 12 Financial Assurances for Completion Page 13 Local Services and Facilities Page Subdivision Use and Restrictions Page 15 Title/Ownership Page 15 Method of Sale or Lease Page Taxes and Assessments Page 16 Property Owners Association Page Title Report Page 19 2

3 THE ARIZONA DEPARTMENT OF REAL ESTATE 1. You BE GIVEN this public report; REQUIRES THAT: 2. YOU SIGN A RECEIPT indicating that you received this report; RECOMMENDS: 1. You DO NOT SIGN ANY AGREEMENT before you have read this report; 2. You see the EXACT PROPERTY you are interested in BEFORE SIGNING any document for lease or purchase. ARIZONA LAW STATES: 1. THE SALE OR LEASE OF SUBDIVIDED LANDS PRIOR TO ISSUANCE OF THIS REPORT OR FAILURE TO DELIVER THIS REPORT TO YOU SHALL RENDER THE SALE OR LEASE RESCINDABLE BY YOU. ACTION TO RESCIND MUST BE BROUGHT WITHIN 3 YEARS FROM DATE OF EXECUTION OF PURCHASE AGREEMENT. 2. CONTRACTS OR AGREEMENTS FOR THE PURCHASE OF AN UNIMPROVED LOT (WITHOUT A BUILDING)* MAY BE RESCINDED BY YOU WITHOUT CAUSE BY SENDING OR DELIVERING WRITTEN NOTICE OF RESCISSION BY MIDNIGHT OF THE SEVENTH CALENDAR DAY FOLLOWING THE SIGNING. 3. IF YOU HAVE SIGNED A PURCHASE AGREEMENT FOR THE PURCHASE OF AN UNIMPROVED LOT (WITHOUT A BUILDING)* PRIOR TO INSPECTING THE LOT, YOU HAVE SIX MONTHS TO INSPECT AND UPON INSPECTION MAY RESCIND THE PURCHASE AGREEMENT. *A contract or agreement for purchase of a lot which includes a building or obligates the seller to complete construction of a building within two years from the contract date does not constitute the purchase of an unimproved lot. Therefore, if your purchase includes a lot and a building or a building to be built, you are not entitled to the rescission rights described in paragraphs 2 and 3. FORM P 3

4 GENERAL This report includes: Units 1001, 1002, 1004, 1005, 1007, 1008, 1010, 1011, 1013, 1014, 1016, 1017, 1019, 1020, 1022, 1023, 1025, 1026, 1028, 1029, 1031, 1032, 1034, 1035, 1037, 1038, 1040, 1041, 1043, 1044, 1046, 1047 and 2001 through 2048, inclusive together with an undivided interest in the common area. The map of this subdivision is recorded in Book 773 of Maps, Page 50; Affidavit of Correction recorded in Instrument No , records of Maricopa County, Arizona. Declaration of Condominium recorded in and re-recorded in and and First Amendment recorded in and Second Amendment recorded in Instrument No , Confirmatory Declaration of Annexation of Future Annexable property, recorded in , Notice of Contact Community Association, recorded in , but deleting any covenant, condition or restriction indicating a preference, limitation or discrimination based on race, color, religion, sex, handicap, familial status or national origin to the extent such covenants, conditions or restrictions violate 42 U.S.C. 3604(c). Purchasers are advised that easements as shown on the recorded plat may change in the future. Purchasers should read the title commitment for their unit to determine the location of new easements and/or relocated easements. The subdivision is approximately acres in size. It has been divided into 80 units and common area. Lot boundaries will be staked at lot corner by registered outside engineering firm. Purchasers are advised that the recorded plat for this subdivision cites the following, in part: Dedication. Owner declares that the common elements consist of all land and amenities shown hereon except that the common elements do not include the space described herein for the units, that the Common elements will be operated and maintained by Villagio at Dove Valley Ranch Condominium Association for the benefit of the owners of units within the condominium. Owner further declares that the common elements are not dedicated to the public for its use, except that the common elements may be used by utility companies, governmental and other entities, for ingress and egress during, but not limited to, the operation and maintenance of provision of utilities, refuse collection, emergency vehicle and mail services, in connection with the recording of this plat, the owner will recorded hereafter a Declaration of condominium and of covenants, condition and restriction for the condominium which will govern the use and maintenance of all real property within the condominium. YOU ARE ADVISED TO OBTAIN A COPY OF THE RECORDED MAP AND CORRECTION DOCUMENTS, IF ANY, AND NOTE ALL EASEMENTS, RESTRICTIONS AND STATEMENTS CONTAINED THEREIN. 4

5 SUBDIVISION LOCATION Location: This subdivision is located at N. Dove Lakes Drive, City of Phoenix, Maricopa County and the State of Arizona. SUBDIVISION CHARACTERISTICS Topography: Land is relatively level with native desert land. Flooding and Drainage: Robert E. Mohning, P.E. of Rick Engineering Company, in his letter dated February 3, 2006 cites the following: The referenced subdivision is within zone X (textured) according to FEMA Flood Information Rate Map Number 04013C0815J, Revised Map date September 30, Zone X (textured) indicates Areas of 0.2% annual chance flood; areas of 1% annual chance flood with average depths of less than 1 foot or with drainage areas less than 1 square mile; and areas protected by levees from 1% annual chance flood. Therefore, the subdivision is not within a Special Flood Hazard Area as defined by FEMA and flood insurance is not required by FEMA. The site is drained to grated inlets and swales which drain to a golf course lake. The golf course lake provides retention for this site. Finish floor elevations are designed to be above water from a 100-year storm. Purchasers are further advised that the Condominium Declaration states the following, in part: Section Flood Insurance. The Project is not located in either an area identified by the Secretary of Housing and Urban Development or the Federal Emergency Management Agency as an area having special flood hazards for which flood insurance is not available because the community in which the Project is located is ineligible for participation in the National Flood Insurance Program. However, a portion of the Property is located in an area having special flood hazards and for which flood insurance has been made available under the National Flood Insurance Program. The Association shall maintain at all times a blanket policy of flood insurance that meets the then existing FHLMC/FNMA flood insurance requirements for similar condominium projects. NOTE: PURCHASERS ARE ADVISED THAT ALTHOUGH FLOOD INSURANCE MAY NOT BE LEGALLY REQUIRED, IT MAY STILL BE REQUIRED BY A PUBLIC OR PRIVATE LENDING INSTITUTION OR OTHER PARTIES. Soils: All soil, by its very nature, exhibits some expansive and/or subsidence potential. Remedies are taken per the soils report for each community as determined by a soils engineer. Delbert A. Rapier, M.S.E, P.E. of Construction Inspection and Testing Co. in his letter dated March 21, 2003, cite the following: 5

6 Executive Summary (ADRE R4-28-A1203 Requirement): The purpose of this soil investigation report is to present general information concerning the engineering characteristics of the soil and to submit recommendations for the design of foundations and site preparation for the proposed development located at Black Mountain Parkway and Clubhouse Road, Phoenix, Arizona. It is understood that the proposed development will consist of one, two and/or three level condominium buildings of masonry, wood and/or street from construction imposing relatively light to moderate foundation loads. Maximum structure loads on the order of 6.0 kips per lineal foot are anticipated and the grading will consists of cuts and fills to obtain finish grade elevations. The site consists of relatively level Native desert land. A light to moderated growth of desert brush trees and cacti are present. The site is crossed by the road to the Dove Valley Golf Course Clubhouse. A golf course with lake features border the site on the west and north. The site is subject to expansive soil conditions. Native fill soil material will require limited compaction. Post-tensioned floor/foundation systems or conventional floor/foundation system with reinforced floor slabs and reinforced footings 2.5 feet in depth are recommended. Total and differential settlements from assumed loads will be within generally accepted tolerance provided that grading operations are performed as specified, no major changes in moisture content of foundation bearing soils occur and that positive drainage away from structures is maintained. During and after construction of building, structural foundation/floor slab bearing soils should not be exposed to moisture infiltration or moisture content fluctuations. Proper drainage of surface water and roof runoff water away from the structures should be provided during construction as well as through out the life of the structure. In no case should long-term ponding be allowed near structures. Proper designing and placement of year vegetation and irrigation systems should be used so that structural foundation/floor slab bearing soils are not exposed to moisture infiltration or moisture content fluctuations. Measured land subsidence within the area approximates less than one foot (Map-Land Subsidence and Earth Fissures in Alluvial Deposits in the Phoenix, Area, Arizona by H.H. Schumann, 1974). Based on the findings presented in this report, the site is considered suitable for condominium buildings imposing relatively light to moderate foundation loads provided floor/foundation systems are properly designed, soils are compacted as specified and foundation bearing soils are not exposed to moisture infiltration or moisture content fluctuation. Adjacent Lands and Vicinity: Subdivision Zoning is R-2 (Multifamily Residence). Zoning surrounding subdivision to the North, South, and East is R1-18 (Single Family Residence) and to the West is R-2 (Multifamily Residence) NOTE: OWNERS OF THE ADJACENT LANDS DESCRIBED ABOVE MAY SEEK TO REZONE THEIR PROPERTY, MAY SEEK ZONING VARIANCES FOR THEIR PROPERTY 6

7 OR MAY MODIFY THEIR SITE PLAN WITHIN EXISTING ZONING. CONSEQUENTLY, NO ASSURANCE CAN BE GIVEN THAT THE ZONING OR USE FOR THE ADJACENT LANDS WILL NOT CHANGE FROM THAT DESCRIBED ABOVE. PURCHASERS SHOULD CONTACT THE CITY OF PHOENIX PLANNING AND ZONING DEPARTMENT (602) OR FOR ZONING INFORMATION. NOTE: INFORMATION ON AMERICAN INDIAN RESERVATION LANDS MAY BE OBTAINED USING THE INTER TRIBAL COUNCIL OF ARIZONA (ITCA) WEBSITE, Public Recreation: Dove Valley Ranch Golf Course is adjacent Cave Creek Recreation Area is approximately 1 ½ miles north Desert Willow Park is approximately 1 ½ mile south Tatum Ranch Golf Club is approximately 1 ½ mile south Black Mountain Summit Preserve is approximately 2 ¾ miles northeast Dynamite Park is approximately 3 miles south Club Terravita Golf Course is approximately 3 miles east El Pedregal at The Boulders is approximately 3 ½ miles east Rancho Manana Golf Club is approximately 3 ½ miles north Whisper Rock Golf Club is approximately 4 miles east The Boulders Golf Course is approximately 4 ¼ miles east Sky Ranch At Carefree, an airport is approximately 5 ½ miles northeast Desert Forest Golf Club is approximately 5 ½ miles northeast Landfills/Transfer Station/Waste Treatment Facility: Cave Creek Landfill is approximately 1 ½ miles west Cave Creek Transfer Station is approximately 1 ½ miles west Currently the Cave Creek Transfer Station is located within the Cave Creek Landfill at 3955 East Carefree Highway. The Cave Creek Landfill is closed to the public. The Cave Creek Transfer Station is open to the public on Fridays & Saturdays from 8:00 AM to 4:00 PM. For more information and hours of operation please contact the Transfer Program Information Hotline at (602) or visit their website at There is a closed landfill site within one mile to the west of Villagio at Dove Valley Ranch. According to the Director of the Solid Waste Management Department of Maricopa County, the site will never be reopened as a landfill. The site does however; serve as a Transfer Station accepting bagged household garbage only, for transfer to other landfill sites and that consideration is currently being given to extend the operation of the Transfer Station at he Landfill Site to include acceptance of other waste such as household hazardous material, green waste and electronic waste. Maricopa County Solid Waste Management Department at

8 Many normal activities at Landfill facilities may create noise, pests, odors, smells, dust, traffic, and/or other effects that may be disturbing to some individuals. Purchasers are advised to independently investigate this matter. Educational Facilities: Desert Willow Elementary School is approximately 1 ¼ mile south Desert Arroyo Middle School is approximately 1 ½ miles east Cactus Shadows High School is approximately 1 ½ miles east Sonoran Trails Middle School is approximately 2 miles east Other: A fire station is approximately 3 miles south Municipal building is approximately 3 ¼ miles north Police station and fire station is approximately 3 ¼ miles northeast Desert Foothills Hospital is approximately 3 ½ miles east Post office and library is approximately 4 miles northeast Cave Creek, a creek, approximately ½ mile north and east You are advised that homes situated adjacent to or in the vicinity of canals, creeks, washes, rivers, channels, flood plains, aqueducts, active mine pits, airparks, auxiliary airfields, military reservations, railroads, freeways, water reclamation/treatment plants, well site/storage tanks, landfills, school sites, parks, open space areas, feed lots, horse property, golf courses, or other non-residential uses and/or other recreation amenities are likely to experience an additional amount of noise, odors, fumes, cultivation & related dust, application of pesticides, irrigation and drainage, vibrations, pests such as flies and mosquitoes, lighting, vehicular and pedestrian traffic associated with the described uses and/or operations for an indefinite period of time. YOU ARE ADVISED TO DETERMINE FOR YOURSELF WHAT AFFECT, IF ANY, THE USES ADJACENT TO OR IN THE VICINITY OF THE SUBDIVISION WILL HAVE ON THE USE AND ENJOYMENT OF YOUR LOT. ARIZONA NATIVE DESERT LANDS: Cockroaches, rattlesnakes, black widow spiders, scorpions and other pests and animals are common in parts of Arizona. Fortunately, most pests can be controlled with pesticides. Scorpions, on the other hand, may be difficult to eliminate. If a purchaser has concerns, they should seek the advice of a pest control company. Each Unit Owner is advised and that his, her or its Unit is or may be adjacent to or near one or more golf courses and related facilities and that golf course-related activities, including, without limitation, regular course play and tournaments, may be held within or adjacent to the Project. Each Unit Owner acknowledges that the location of his, her or its Unit within the Project may result in nuisances, hazards or injuries to person and property on such Unit or related Common Elements and/or Limited Comment Elements as a result of normal golf course operations or as a result of such other golf course-related activities. Each Unit Owner covenants for itself, its successors and assigns, and for such Unit Owner s residents and family members, that it and they assume all risk associated with such location, including but not limited to, the risk of property damage or personal injury, including death, arising from golf balls or actions incidental t o such 8

9 golf course-related activities. Unit Owners may also experience possible odors relating to maintenance of the golf course adjacent to and in the vicinity of this subdivision. Towne Realty Inc. does not own or control the golf course. Builder has researched the surrounding area land uses and has made every attempt to disclose information allowing Buyer to make the most informed purchase decision. It is the responsibility of each prospective Buyer to conduct independent research to determine if this property is acceptable. AIRPORTS Military Airport: This subdivision is not located in territory in the vicinity of a military airport or an ancillary military facility as defined in A.R.S This subdivision is not located under a military training route or restricted air space or high noise or accident potential zone as defined in A.R.S and this subdivision is not delineated in the military training route map or restricted air space map prepared pursuant to A.R.S Public Airport: This subdivision is not located in territory in the vicinity of a public airport as defined in A.R.S Airport: The nearest public or private airport is Sky Ranch at Carefree located at 8302 East Cave Creek Road and is approximately 5 miles from subdivision; Phoenix Deer Valley Airport is located at 702 W. Deer Valley Road and is approximately 8.5 miles from this subdivision. PURCHASES ARE ADVISED THAT AIRPORTS DESIGNATED TERRITORIES AND BOUNDARY ZONES MAY CHANGE IN THE FUTURE. PURCHASERS ARE ADVISED TO CONTACT THE AIRPORTS CLOSEST TO THEIR COMMUNITIES FOR UPDATED INFORMATION. ALL AREAS WITHIN AN OVER-FLIGHT DISTRICT ARE SUBJECT TO AIRCRAFT ACTIVITY. EVEN THOUGH A RESIDENCE MAY LIE OUTSIDE THE BOUNDARIES OF AN OVER-FLIGHT DISTRICT, IT STILL MAY BE SUBJECT TO OVER-FLIGHTS BY AIRCRAFT DEPARTING OR ARRIVING FROM THE NEAREST AIRPORT AND VARIOUS AIRPORTS WITHIN OR OUTSIDE OF THE VALLEY. AIRCRAFT OVER- FLIGHTS AND NOISE LEVELS AFFECT EVERYONE DIFFERENTLY. PURCHASERS SHOULD FURTHER INVESTIGATE FOR THEMSELVES THE IMPACT AND/OR EFFECT OF AIRPORTS AND AIRCRAFT OVER-FLIGHTS UTILITIES Electricity: Service provider is Arizona Public Service Company (APS) local number or toll free Purchasers may also obtain further information from their website at Subdivider will complete facilities to the building pads bay January 1, Buyers cost for completion of the facilities to the building pads are included in the purchase price. Upon completion, buyer s cost to begin service with APS may include a $25.00 (plus tax) activation fee. New customers with no prior account history with APS or customers 9

10 with bad credit may be required to pay a deposit of $60.00 to $ or two times the average monthly bill for type of dwelling/family size, which ever is less. All fees and/or deposits are subject to change without notice purchasers should contact APS for further details. Once service has been established, direct user charges will apply. PURCHASERS ARE ADVISED THAT THE SUBDIVIDER DOES NOT GUARANTEE THE FUTURE AVAILABILITY OF ELECTRICITY. ACTS OF NATURE, MANKIND AND OTHER EVENTS MAY CAUSE ROLLING BLACK OUTS, BLACK OUTS AND/OR LIMITED SUPPLY OF ELECTRICITY. PURCHASERS SHOULD CONTACT THE UTILITY PROVIDER FOR INFORMATION. Street Lights: Subdivider has completed streets lights within the subdivision. Cost for electricity to the streets lights are paid by the Condominium Association and Buyer s costs are included in the assessments. PURCHASERS ARE ADVISED THAT THE SUBDIVIDER DOES NOT GUARANTEE THE FUTURE AVAILABILITY OF ELECTRICITY TO THE STREETLIGHTS. ACTS OF NATURE, MANKIND AND OTHER EVENTS MAY CAUSE ROLLING BLACK OUTS, BLACK OUTS AND/OR LIMITED SUPPLY OF ELECTRICITY. PURCHASERS SHOULD CONTACT THE UTILITY PROVIDER FOR INFORMATION. Telephone: Service provider is Cox Communications local telephone number is Purchaser may also obtain further information from their website at Subdivider will complete facilities to the building pads by January 1, Buyer s costs for completion of the facilities to the building pads are included in the purchase price. Upon completion, Buyers cost to begin service may include a minimum monthly service charge of $21.99 plus tax, a deposit of $90.00 depending on credit history of buyer and an installation fee of $30.00 may apply. All fees and/or deposits are subject to change without notice purchasers should contact Cox Communications for further details. Once service has been established, direct user charges will apply. PURCHASERS ARE ADVISED THAT THE SUBDIVIDER DOES NOT GUARANTEE THE FUTURE AVAILABILITY OF TELEPHONE SERVICE. ACTS OF NATURE, MANKIND AND OTHER EVENTS MAY CAUSE ROLLING BLACK OUTS, BLACK OUTS AND/OR LIMITED SUPPLY OF POWER. PURCHASERS SHOULD CONTACT THE UTILITY PROVIDER FOR INFORMATION. IT IS POSSIBLE THAT PURCHASERS MAY NOT HAVE TELEPHONE SERVICE AT THE TIME OF CLOSING AND ARE ADVISED TO CONTACT THE TELEPHONE PROVIDER TO DETERMINE THE STATUS OF SERVICE. PURCHASERS MAY ALSO WANT TO CONSIDER A TEMPORARY ALTERNATIVE SUCH AS A CELLULAR TELEPHONE. Cable: Service provider is Cox Communications local telephone number is Purchaser may also obtain further information from their website at Subdivider will complete facilities to the building pads by January 1, Buyer s costs for completion of the facilities to the building pads are included in the purchase price. Upon completion, Buyers cost to begin service may include a minim monthly service charge of $24.99 plus tax, an 10

11 installation charge of $ $60.00 $19.95 and depending on credit history of buyer a deposit of $60.00 to $ may apply. All fees and/or deposits are subject to change without notice purchasers should contact Cox Communications for further details. Once service has been established, direct user charges will apply. PURCHASERS ARE ADVISED THAT THE SUBDIVIDER DOES NOT GUARANTEE THE FUTURE AVAILABILITY OF CABLE SERVICE. ACTS OF NATURE, MANKIND AND OTHER EVENTS MAY CAUSE TEMPORARY INTERUPTION OF SERVICE, ROLLING BLACK OUTS, BLACK OUTS AND/OR LIMITED SUPPLY OF POWER. PURCHASERS SHOULD CONTACT THE UTILITY PROVIDER FOR INFORMATION. Natural Gas: Service Provider is Southwest Gas Corporation local telephone number is Purchaser may also obtain further information from their website at Subdivider will complete facilities to the building pads by January 1, Buyers cost for completion of facilities to the building pads are included in the purchase price. Upon completion, Buyers cost to begin service may include a deposit of $80.00 depending on buyer s credit and a service establishment fee of $ $75.00 plus tax may be required. All fees and/or deposits are subject to change without notice purchasers should contact Southwest Gas Corporation for further details. Once service has been established, direct user charges will apply. PURCHASERS ARE ADVISED THAT THE SUBDIVIDER DOES NOT GUARANTEE THE FUTURE AVAILABILITY OF NATURAL GAS. ACTS OF NATURE, MANKIND AND OTHER EVENTS MAY CAUSE INTERUPTION OF SERVICE OR EFFECT FUTURE AVAILABILTY OF SERVICE. PURCHASERS SHOULD CONTACT THE UTILITY PROVIDER FOR INFORMATION. Water and Sewage Disposal: Service Provider is City of Phoenix local telephone number is Purchaser may also obtain further information from their website at Subdivider will complete facilities to the building pads by January 1, Buyers cost for completion of facilities to the building pads are included in the purchase price. Upon completion, Buyers cost to begin service are included in the condominium association assessments. The condominium association will maintain the water lines within the subdivision other than from the building pad to the dwelling. The City of Phoenix will maintain the water lines outside the subdivision. Buyer s cost for maintenance is included in the association dues and property taxes. All fees and/or deposits are subject to change without notice purchasers should contact the association for further details. Once service has been established, direct user charges will apply. PURCHASERS ARE ADVISED THAT WATER PRESSURE MAY VARY DEPENDING ON THE AREA. FOR FURTHER INFORMATION PURCHASERS SHOULD CONTACT THE WATER/SEWER SERVICE PROVIDER. THE ABOVE COSTS ARE SUBJECT TO CHANGE BY SERVICE PROVIDERS. YOU SHOULD CONTACT THE ABOVE PROVIDERS REGARDING EXTENSION RULES AND REGULATIONS, SERVICE CONNECTIONS AND COSTS INVOLVED. 11

12 STREETS, ROADS AND DRAINAGE Access to the Subdivision: Asphalt paved public streets are complete and are maintained by the City of Phoenix. Buyer s costs for maintenance are included in the real estate taxes. Access within the Subdivision: Asphalt paved private driveways are complete and are maintained by the Villagio at Dove Valley Ranch Condominium Association. Buyers cost for maintenance is included in the association dues. Arizona State Trust Land: The Arizona State Land Department administers over 9.3 million acres of State Trust Land. This is not public land. Trust land may be subject to future development and may not be preserved or saved for openspace without compensation. A person must have prior approval to use State Trust Land. Temporary recreational use is allowed with certain restrictions and conditions through purchase of a recreational permit. Use of State Trust Land without proper approval is a trespass. MANY ROADS ON RURAL TRUST LANDS ARE NOT LEGAL TRAVEL ROUTES, EXCEPT FOR STATE LESSEES AND HUNTERS, AND DO NOT PROVIDE LEGAL ACCESS TO PRIVATE LAND. STATE TRUST LAND MAY BE SOLD OR LEASED FOR USES WHICH MAY EXCLUDE RECREATION. RECREATION IS A TEMPORARY USE THAT MAY BE TERMINATED AT ANY TIME. For additional information, visit the State Land Department web page at or call (602) Flood and Drainage: Subdivider has completed the drainage facilities for this subdivision. The site is drained to grated inlets and swales which drain to golf course lakes. The golf course lakes provide retention for this site. Typical street drainage is maintained within the private drives. Villagio at Dove Valley Ranch Condominium Association will maintain the drainage within the private drives. The Dove Valley Ranch Community Association will maintain the drainage to the golf course lakes and the golf course lakes. Buyer s costs for maintenance are included in the condominium association and master association assessments. COMMON, COMMUNITY AND RECREATIONAL FACILITIES Within the Subdivision: Subdivider will complete the landscaping, swimming pool; spa, Ramada and fitness enter by May 16, Upon completion, final inspection and acceptance by the condominium association, the Villagio at Dove Valley Ranch Condominium Association will maintain these facilities. Buyers cost for maintenance are included in these assessments. Within the Master Planned Community: Dove Valley Ranch is a master planned community, consisting of approximately gross acres with net acres. Development will consist of a mix of single family residential homes, patio homes, cluster homes, multi-family housing such as apartments and condominiums, a golf course and a club house along with some commercial development. The master plan improvements are complete and each homebuilder is responsible for completing specific parcels and subdivision improvements. The Dove Valley 12

13 Ranch Community Association is responsible for maintaining master facilities. Buyers cost for maintenance is included in the master assessments. ASSURANCES FOR COMPLETION Assurances for Completion of Subdivision Facilities: Subdivider has posted a Subdivision Bond issued by Liberty Mutual Insurance Company to guarantee the completion of all subdivision improvements. SUBDIVIDER RESERVES THE RIGHT TO CHANGE METHOD OF FINANCIAL ASSURANCES FOR THE COMPLETION OF SUBDIVISION IMPROVEMENTS TO BOND(S), LETTER OF CREDIT(S), ETC., OR ANY OTHER FORM ACCEPTABLE TO THE ARIZONA DEPARTMENT OF REAL ESTATE. Assurances for Maintenance of Subdivision Facilities: The Declaration of Condominium for Villagio at Dove Valley Ranch Condominiums and Master Declaration of Covenants, Conditions and Restrictions for Dove Valley Ranch Community, Associations Articles of Incorporation and Bylaws provides for maintenance of subdivision common area. Utility providers and the City of Phoenix to maintain their respective facilities. LOCAL SERVICES AND FACILITIES Schools: Lone Mountain Elementary School (K-5) 5250 E. Montgomery Road, approximately 3.5 miles. Desert Arroyo Middle School (6-8) North 56 th Street (480) , approximately 2 miles; Cactus Shadows High School (9-12), 5802 East Dove Valley Road (480) , approximately 2 miles. Bus transportation is available to students residing outside the minimum mile distance designated by the attending schools. SCHOOL BOUNDARIES AND BUS TRANSPORTATION ARE SUBJECT TO CHANGE. PURCHASERS SHOULD CONTACT THE CAVECREEK UNIFIED SCHOOL DISTRICT AT ( TO VERIFY SCHOOL BOUNDARIES AND TRANSPORTATION AVAILABILITY. ADDITIONAL INFORMATION REGARDING SCHOOLS AND DISTRICTS CAN BE FOUND AT THE FOLLOWING WEBSITES: AND Shopping Facilities: Fry s Food and Drug, 4815 East Carefree Highway, approximately 1 ½ miles northeast. PURCHASERS ARE ADVISED THAT SHOPPING LOCATIONS AND FACILITIES MAY CHANGE. PURCHASERS SHOULD DRIVE AROUND THE SUBDIVISION AND ITS 13

14 VICINITY TO DETERMINE THE NEAREST SHOPPING FACILITIES TO THE COMMUNITY. Public Transportation: Valley Metro bus stop is located at East Pathfinder Drive and North Tatum Boulevard, approximately 7 ¼ miles from subdivision. BUS ROUTES AND SCHEDULES ARE SUBJECT TO CHANGE. FOR ADDITIONAL INFORMATION, PLEASE CONTACT THE VALLEY METRO TRANSIT SYSTEM AT (602) , OR VISIT THE WEBSITE AT Medical Facilities: Mayo Clinic, 5777 East Mayo Boulevard, approximately 8 ½ miles from subdivision. PURCHASERS ARE ADVISED THAT MEDICAL FACILITIES MAY CHANGE. PURCHASERS SHOULD DRIVE AROUND THE SUBDIVISION AND ITS VICINITY TO DETERMINE THE NEAREST MEDICAL FACILITIES TO THE COMMUNITY. Fire Protection: City of Phoenix Fire Department. Costs are included in real estate taxes. PURCHASERS ARE ADVISED THAT FIRE DEPARTMENT ACCESS MAY BE DELAYED FOR RESIDENCES IN A GATED COMMUNITY. Ambulance Service: City of Phoenix Fire Department. Fire Station located at 3750 E. Dynamite Blvd. Available by dialing 911. PURCHASERS ARE ADVISED THAT AMBULANCE SERVICE AND EMERGENCY TYPE VEHICLES MAY BE DELAYED FOR RESIDENCES IN A GATED COMMUNITY. Police Services: City of Phoenix Police Department. PURCHASERS ARE ADVISED THAT POLICE ACCESS MAY BE DELAYED FOR RESIDENCES IN A GATED COMMUNITY. Garbage Services: City of Phoenix. Purchaser s cost for service is $25.00 per month. LOCATIONS AND COSTS OF THE ABOVE SERVICES AND FACILITIES MAY CHANGE. YOU SHOULD VERIFY THEIR CURRENT LOCATIONS AND COSTS PRIOR TO PURCHASE. Use: This offering is for Condominium Unit. Zoning: Multi Family. SUBDIVISION USE AND RESTRICTIONS 14

15 Conditions, Reservations and Restrictions: As cited in the recorded Declaration of Condominium, Homeowner Association Articles of Incorporation and Bylaws the Homeowners Association, existing zoning and Schedule B items as shown on the preliminary title report issued for this project. Restrictions and Other Matters of Record: Conditions, reservations and restrictions that may run with the land including City or County zoning restrictions should be investigated by you. Copies of those items which are recorded may be inspected at the Office of the Maricopa County Recorder. Information about zoning may be obtained at the Office of the City of Phoenix Planning and Zoning Department. Restrictions are recorded as cited in the following title exceptions and per the subdivision plat. TITLE Title to this subdivision is vested in DV Development LLC, an Arizona limited liability company. Subdivider s interest in this subdivision is evidenced by fee title. Title is subject, among other things, to all taxes, assessments, covenants, conditions, restrictions, limitations, reservations, rights, obligations, powers, easements, rights of way, liens, and charges of record. YOU SHOULD INVESTIGATE THE TITLE AND SATISFY YOURSELF AS TO WHAT EFFECT, IF ANY, THESE MATTERS MAY HAVE ON THE USE OF THE LAND. Title exceptions affecting the condition of title are listed in the Preliminary Title Report dated August 26, 2013, issued by Greystone Title Agency. You should obtain a title report and determine the effect of the listed exceptions. EXCEPTIONS: SEE EXHIBIT A ATTACHED THE COAL AND OTHER MINERALS IN THIS SUBDIVISION WILL NOT BELONG TO THE PURCHASERS OF THE UNITS. THE EXERCISE OF THE RIGHT TO EXTRACT THESE MINERALS COULD AFFECT THE USE, ENJOYMENT AND VALUE OF YOUR UNIT. METHOD OF SALE OR LEASE Sales: Your vested interest/ownership interest in the property will be evidenced by the Subdivider delivering a recorded deed to you and by your signing a promissory note and mortgage or deed of trust for the unpaid balance, if any. You should read these documents before signing them. Buyer s Initially funds will be deposited in escrow with a licensed escrow agent and then may be released to the Seller. 15

16 NOTICE TO BUYER REGARDING SELLER S RIGHT TO USE FUNDS: BUYER IS ADVISED THAT ALL EARNEST MONEY DEPOSITS, DOWN PAYMENTS AND ANY OTHER ADVANCES BY BUYER WILL BE RELEASED BY ESCROW AGENT TO SELLER PRIOR TO THE CLOSE OF ESCROW AND MAY BE USED BY THE SELLER, WHICH DEPOSITS, DOWN PAYMENTS AND OTHER ADVANCES WILL BE CREDITED TO THE BUYER AT CLOSING. THIS MEANS THE BUYER ASSUMES A RISK OF LOSING SUCH MONEY IF THE SELLER IS UNABLE OR UNWILLING TO PERFORM UNDER THE TERMS OF THE PURCHASE CONTRACT. Release of Liens and Encumbrances: Partial release provisions are contained in the Deed of Trust. Use and Occupancy: Purchasers will be able to use and occupy their lot upon the close of escrow/recording of deed. Leasehold Offering: There are currently no provisions for leasehold offering. THE PURCHASE CONTRACT IS A BINDING AGREEMENT. CONTRARY TO THE TERMS AND PROVISIONS OF THE CONTRACT, YOU MAY HAVE ADDITIONAL RIGHTS, REMEDIES AND WARRANTIES PROVIDED BY LAW. READ THOROUGHLY BEFORE SIGNING. IF NOT UNDERSTOOD, SEEK COMPETENT ADVICE PRIOR TO COMMITMENT TO PURCHASE. TAXES AND ASSESSMENTS Real Property Taxes: The combined primary and secondary property tax rate for this subdivision for the year 2013 is $8.03 per $ assessed valuation. The estimated property tax for a condominium unit (dwelling), based on the above tax rate and average sales price of $305,000.00, is $2, Special District Tax or Assessments: The Subdivider is not aware any current special district tax or assessments. AMOUNT OF TAXES AND ASSESSMENTS SET FORTH ABOVE IS APPROXIMATE ONLY AND SUBJECT TO CHANGE. PURCHASER SHOULD CONTACT THE MARICOPA COUNTY ASSESSOR REGARDING PROPERTY TAXES, SPECIAL DISTRICT TAX OR ASSESSMENTS AT OR VISIT THEIR WEBSITE AT FOR FURTHER INFORMATION. PROPERTY OWNERS ASSOCIATIONS Name and Assessments: Purchasers are required to pay assessments in the amount of $ per month to the Villagio at Dove Valley Ranch Homeowners Association and $ per 16

17 quarter to Dove Valley Ranch Community Association plus any transfer fees, set up fees and/or reserve fees, etc., as disclosed in the Declaration of Condominium. Purchasers are advised that the Declaration of Condominium states the following in part: Reserve Fund. The Association shall establish and maintain a segregated reserve fund for the periodic maintenance, repair and replacement of improvements to the Common elements and to the Common Elements and to the Limited Common Elements the Association may be obligated to maintain. The reserve fund shall be maintained out of regular assessments for common expenses Working Capital Fund. The Association shall also establish and maintain an initial working capital fund equal to at lest two monthly installments of the Annual Assessment in effect at the time of closing the first unit sale by Declarant for each Condominium. Payment into the working capital fund shall be made by the Owner and only apply to sales by Declarant. Each Condominium s share of the working capital fund must be collected and transferred to the Association at the time of the closing of sale of that Condominium. The working capital fund must be maintained in a segregated account for the use and benefit of the Association. The purpose of the working capital fund is to ensure that the Association will have cash available to meet unforeseen expenditures or to acquire additional equipment or services deemed necessary or desirable by the Association. Amounts paid into the working capital fund are not to be considered advance payments of any regular assessment. Shortages in the working capital fund at the end of any fiscal year must be replenished in the next fiscal year through increases in annual and/or special assessments. The association assessments are subject to change according to the recorded Declaration of Covenants, Conditions and Restrictions and any amendments thereto. Purchasers should read those documents to determine changes, if any, in the association assessments. Control of Association: The period of Declarant Control will end when the Class B Members cease and be converted to Class A Memberships upon the earlier of the following to occur: (a) when 75% of the maximum lots are owned by Homeowners; (b) Fifteen (15) Years from the anniversary date of closing for the first lot to a Homeowner after issuance of the first public report; provided that, in the event that the Declarant annexes additional property pursuant to Article XVII, of the Declaration, the 15-year period for conversion shall be extended for additional 7-year periods from the date of recording of the most recent Supplemental Declaration to annex additional property; or; (c) When, in its sole and absolute discretion, the Declarant gives written notice to the Association that Declarant wishes to convert all Class B Memberships to Class A Members. Title to Common Areas: Each unit owner will receive an undivided interest in the common elements at time of conveyance of a unit. Membership: All unit owners will be members of the condominium association. PAYMENTS TO PROPERTY OWNERS ASSOCIATIONS ARE SUBJECT TO CHANGE IN ACCORDANCE WITH RECORDED RESTRICTIONS. SAID ASSOCIATION MAY ALSO IMPOSE SPECIAL ASSESSMENTS. 17

18 YOU ARE ADVISED TO READ THE RECORDED CONDOMINIUM DECLARATION ARTICLES OF INCORPORATION AND BYLAWS FOR THIS SUBDIVISION TO DETERMINE THE RIGHTS OF UNIT OWNERS TO PARTICIPATE IN THE CONTROL OF THE PROPERTY OWNERS ASSOCIATION AND TO DETERMINE THE RIGHTS, DUTIES AND LIMITATIONS OF OWNERS IN AND TO USE OF THEIR UNITS. FURTHER, YOU SHOULD DETERMINE FOR YOURSELF IF SUBDIVIDER S ARRANGEMENTS AND PLANS FOR THE PAYMENT OF ASSESSMENTS ON UNSOLD UNITS WILL BE SUFFICIENT TO FULFILL THE NEEDS, DEMANDS AND FINANCIAL OBLIGATIONS OF THE ASSOCIATION, AS SET FORTH IN THE DECLARATION AND BYLAWS. /mdw 18

19 Exhibit A 1. Reservations contained in the Patent from the United States of America, recorded March 30, 1948 at Docket 180, page 501, reading as follows: Subject to any vested and accrued water rights for mining, agricultural, manufacturing, or other purposes, and rights to ditches and reservoirs used in connection with such water rights as may be recognized and acknowledged by the local customs, laws and decisions of courts; and there is reserved from the lands hereby granted, a right of way thereon for ditches or canals constructed by the authority of the United States of America; Excepting and reserving, however, to the United States all the coal and other minerals, in the land so entered and patented, together with the right to prospect for, mine and remove the same according to the provisions and limitations of the Act of December 29, 1916 (39 Stat., 882). 2. The right of entry to prospect for, mine and remove the minerals in said land as reserved in the Patent. 3. Water rights, claims or title to water, whether or not the matters excepted are shown by the public records. 4. Taxes for the year of 2013, a Lien, but not yet due and payable. First half due and payable October 1, 2013 and delinquent on November 1 of that year. Second half payable on or before March 1 of the following year, and delinquent May 1 of that same year. 5. Liabilities and Obligations imposed upon said land by reason of its inclusion within the following district(s) and/or association(s): Dove Valley Ranch Community Association. 6. Liabilities and Obligations imposed upon said land by reason of its inclusion within the following district(s) and/or association(s): Villagio at Dove Valley Ranch Homeowners Association. 7. Easements, restrictions, reservations, conditions, setback lines and all other matters as set forth on the plat recorded in Book 474 of Maps, Page 6, and Book 773 of Maps, Page 50 and Affidavit of Correction recorded in Instrument No , and Book 759 of Maps, Page 14 deleting any covenant, condition or restriction indicating a preference, limitation or discrimination based on race, color, religion, sex, handicap, familial status or national origin to the extent such covenants, conditions or restrictions violate 42 U.S.C. 3604(c). 8. Rights-Of-Way Dedication, Cross Easements and Development Agreement recorded in Terms, Conditions and Provisions contained in Permanent Non-Exclusive Easement for Storage and Withdrawal of Surface Water, Retention and Discharge of Strom Water Run-Off 19

20 and Construction, Operation, Maintenance and Repair of Water Storage and Distribution Facilities, recorded in ; First Amendment recorded in All matters as set forth in covenants, conditions, and restrictions recorded in , but deleting any covenant, condition or restriction indicating a preference, limitation or discrimination based on race, color, religion, sex, handicap, familial status or national origin to the extent such covenants, conditions or restrictions violate 42 U.S.C. 3604(c). 11. The terms and provisions contained in the document entitled Notice of Non-Potable Water Use, Acknowledgement and Waiver recorded in and in An easement for non-potable water flow regulation and telemetry facilities and rights incidental thereto, recorded in All matters disclosed by the public records, by reason of Roadway Access Easement Agreement recorded in having an interest herein. 14. Terms, Conditions and Provisions contained in Lake Use and Maintenance Agreement, recorded in An easement for ingress and egress and rights incidental thereto, recorded in All matters as set forth in covenants, conditions, and restrictions recorded in and re-recorded in and and First Amendment recorded in and Second Amendment recorded in Instrument No , Confirmatory Declaration of Annexation of Future Annexable property, recorded in , Notice of Contact Community Association, recorded in , but deleting any covenant, condition or restriction indicating a preference, limitation or discrimination based on race, color, religion, sex, handicap, familial status or national origin to the extent such covenants, conditions or restrictions violate 42 U.S.C. 3604(c). 17. Easement Agreement and Covenants Running With The Land for Landscape and Sidewalk Maintenance recorded in An easement for utilities and rights incidental thereto, recorded in Construction Deed of Trust, Security Agreement, Assignment of Leases and Rents and Fixture Filing given to secure an indebtedness under a Revolving Loan Agreement with a credit limit in the principal amount shown therein, together with any and all other obligations secured thereby; Dated: January 26, 2005 Trustor: DV Development, LLC, an Arizona limited liability company Trustee: First American Title Insurance Company, a California corporation Beneficiary: Bank of America, NA Amount: $6,000, Recorded: January 27,

21 In: Document No Memorandum of the Loan Modification Agreement, recorded in Memorandum of the Seventh Amendment to the Construction Loan Agreement, Note and Loan Documents, recorded in Memorandum of Modification Agreement, recorded in Memorandum of the Eighth Amendment to the Construction Loan Agreement, Note and Loan Documents, recorded in END OF SCHEDULE B 21