SUBDIVISION DISCLOSURE REPORT (PUBLIC REPORT) FOR Surprise Farms Phase 3, Parcel 4

Transcription

1 Arizona Department of Real Estate (ADRE) Development Services Division PHOENIX OFFICE 2910 N. 44 th STREET STE-100 PHOENIX, AZ DOUGLAS A. DUCEY GOVERNOR JUDY LOWE COMMISSIONER SUBDIVISION DISCLOSURE REPORT (PUBLIC REPORT) FOR Surprise Farms Phase 3, Parcel 4 aka Mesquite Trails at Surprise Farms Registration No. DM SUBDIVIDER Surprise Phase 3 Parcel 4, LLC 706 E. Bell Rd #212 Phoenix, AZ Effective Date :January 4, 2013 First Amended Effective Date: April 13, 2017 PROPERTY REPORT DISCLAIMER This report is NOT A RECOMMENDATION NOR AN ENDORSEMENT by the State of Arizona of this land. The application and public report have not been subjected to a detailed examination by the Department. The report was prepared by the subdivider and none of the information in this report has been verified by the Department; all information has been accepted by the Department 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.

2 Contents GENERAL... 4 SUBDIVISION LOCATION... 4 UTILITIES... 4 STREETS, ROADS AND DRAINAGE... 5 LOCAL SERVICES AND FACILITIES... 6 COMMON, COMMUNITY AND RECREATIONAL FACILITIES... 7 ASSURANCES FOR COMPLETION OF IMPROVMENTS... 8 PROPERTY OWNERS ASSOCIATIONS... 8 SUBDIVISION CHARACTERISTICS... 9 SUBDIVISION USE AND RESTRICTIONS...14 AIRPORTS...14 TITLE...15 METHOD OF SALE OR LEASE...15 TAXES AND ASSESSMENTS...16

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 CONTRACTS OR AGREEMENTS FOR THE PURCHASE OF AN UNIMPROVED LOT (WITHOUT A BUILDING)* MAY BE RESCINDED BY YOU WITHOUT CAUSE BY SENDING OR DELIVERING WRITTEN NOTICE OF RESCISSION BY MIDNIGHT OF THE SEVENTH CALENDAR DAY FOLLOWING THE SIGNING. 3.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.

4 This report includes: Lots inclusive GENERAL The map of this subdivision is recorded in Book/Cabinet 709 page/slide 37, records of Maricopa County, Arizona. The subdivision is approximately acres in size. It has been divided into 134 lots. Lot boundaries will be staked at the corners and radii with iron pins 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. SUBDIVISION LOCATION Location: Situated in the City of Surprise, County of Maricopa and State of Arizona at 183 rd Ave and Bell Road. UTILITIES Electricity: Arizona Public Service Cost to lot purchasers to receive service are a possible deposit and, if applicable, a $ $75.00 plus tax connection or service establishment fee. Telephone: Cox Communications Cost to lot purchasers to receive service is a $ $50.00 plus tax connection fee for service along with a possible deposit. Base monthly fee approximately $ $ Cable: Cox Communications Cost to lot purchasers to receive service is a $ $99.99 installation or connection fee and a possible deposit. Internet or Fiber Optic: Cox Communications Cost to lot purchasers to receive service is a $ $99.99 installation or connection fee and a possible deposit. Natural Gas: Southwest Gas Corporation Cost to lot purchasers to receive service is a $ $75.00 installation or connection fee and a possible deposit. FORM P 1/22/2009 4

5 Water: Epcor Water Cost to lot purchasers to receive service are $ $ Sewage Disposal: American Water Cost to lot purchaser to receive service are presently no charges. Garbage Services: American Water Cost to lot purchaser to receive service are presently no charges. Developer / Subdivider has completed the extension of the utilities to the lot line. PURCHASERS ARE ADVISED TO CONTACT THE ABOVE LISTED PROVIDERS REGARDING EXTENSION RULES, REGULATIONS, SERVICE CONNECTIONS, INSTALLATION CHARGES, ACCOUNT SET-UP FEES AND THE COSTS INVOLVED. COSTS ARE SUBJECT TO CHANGE BY THE SERVICE PROVIDERS. STREETS, ROADS AND DRAINAGE Access to the Subdivision: Master Developer has completed the asphalt paved public streets to the minimum standards of the city of Surprise, which has been accepted by the City for Maintenance. Purchasers cost is included in property taxes. Access within the Subdivision: Master Developer has completed the asphalt paved public streets to the minimum standards of the city of Surprise, which has been accepted by the City for Maintenance. Purchasers cost is included in property taxes. Street Lights: Street lights are presently installed. Purchasers cost is included in property taxes. Flood and Drainage: Subdivider has completed the typical street drainage and drainage easements, which the typical street drainage will be maintained by the City of Surprise; and the drainage easement will be maintained by the Community Association. Cost to purchaser for maintenance are included in the property taxes and community Association fees. 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 open space 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. FORM P 1/22/2009 5

6 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) Schools: LOCAL SERVICES AND FACILITIES Western Peaks Elementary School (K-8), W. Surprise Farms Loop S, Surprise, Arizona 85388, (623) , approximately ½ mile southeast of the subdivision. High School: Willow Canyon High School W Lundberg Street, Surprise, Arizona, Approximately ½ mile NW. Transportation is available for Kindergarten students who live greater than ½ mile from the school. Transportation is provided for 1 st 8 th grade for students living more than 1 mile from the school. Transportation is provided for high school students, grades 9 12, who live more than 1 ½ miles from the school. NOTE: School boundaries, assignments and school bus transportation are subject to change. Prospective Purchasers should contact the Dysart Unified School District at (623) or visit their website at for verification of schools, current location of schools and bus service. Additional information regarding schools and districts can be found at the following websites: and Shopping Facilities: Albertson s and Osco Drugs W Bell Road, Surprise, AZ Public Transportation: Phoenix Transit System currently not available to this subdivision. Surprise Dial a Ride is available. Medical Facilities: Del E Webb Memorial W Meeker Blvd., Sun City West, AZ Fire Protection: City of Surprise fire protection is included in property tax (623) Ambulance Service: Ambulance services are available by calling 911. Southwest Ambulance, located at 222 East Main Street, Mesa Arizona (602) American Contrans, located at 1501 West Fountainhead Parkway, Ste 650, Tempe Arizona, (480) ext. 30. FORM P 1/22/2009 6

7 Police Services: City of Surprise Policy Department (623) LOCATIONS AND COSTS OF THE ABOVE SERVICES AND FACILITIES MAY CHANGE. YOU SHOULD VERIFY THEIR CURRENT LOCATIONS AND COSTS PRIOR TO PURCHASE. COMMON, COMMUNITY AND RECREATIONAL FACILITIES Within the Subdivision: Subdivision includes residential areas, tot lot, benches, ramadas, trash receptacles, picnic tables, and open space with common area trials which are included in the HOA assessment. Within the Master Planned Community: Within the Master Planned community (Surprise Farms master planned community): Surprise Farms consists of 1415 total acres, approximately 6,800 residential units, including single family homes, courtyard housing and multi-family dwelling units. The community is located between Bell and Greenway Roads and the Beardsley Canal and Steta Route 303 in Surprise, Arizona, The community features a proposed 151 acres of open space/park/trail system, 2 grade schools sites, 3 churches, 42 commercially zoned acres and a fire station. The community is being developed in stages. Phase 1A has been completed and includes residential areas, tot lot, benches, ramadas, trash receptacles, picnic tables, and open space with common area trials. Phase 1B has been completed and includes residential areas, tot lot, benches, ramadas, trash receptacles, picnic tables, and open space with common area trials. Phase 2 has been completed and includes residential areas, tot lot, benches, ramadas, trash receptacles, picnic tables, and open space with common area trials. Phase 3 has been completed and includes residential areas, tot lot, benches, ramadas, trash receptacles, picnic tables, and open space with common area trials. Phase 4 has been completed and includes residential areas, tot lot, benches, ramadas, trash receptacles, picnic tables, and open space with common area trials. Phase 5 has been completed and includes residential areas, tot lot, benches, ramadas, trash receptacles, picnic tables, and open space with common area trials. Phase 6 is currently under construction and is proposed to include residential areas, tot lot, benches, ramadas, trash receptacles, picnic tables, and open space with common area trials. FORM P 1/22/2009 7

8 PHASE 6 OF THE MASTER PLANNED COMMUNITY IS PROPOSED ONLY AND THERE IS NO GUARANTEE THAT ANY FURTHER DEVELOPMENT WILL BE CONSTRUCTED. PURCHASER ASSUMES A RISK THAT THE MASTER DEVELOPMENT IMPROVEMENTS MAY NEVER BE COMPLETED AND THAT ALL REPRESENTATIONS TO THE MASTER PLANNED COMMUNITY MUST BE REPRESENTED AS PROPOSED ONLY. ASSURANCES FOR COMPLETION OF IMPROVMENTS Assurances for Completion of Subdivision Facilities: Subdivisions improvements and master planned community facilities within initial completed phases have been completed. The current phase is proposed only and no warranty is given or implied that the improvements will be completed. Assurances for Maintenance of Subdivision Facilities: The utility companies will maintain their facilities, the City of Surprise will maintain roadways and other such facilities, any common areas will be maintained by the HOA. FORM P 1/22/ PROPERTY OWNERS ASSOCIATIONS Name and Assessments: The Surprise Farms III Community Association. Current monthly assessment fee is $50.00 per month. Control of Association: This information is usually taken from the recorded CC&R s, from the period of Declarant control, as to how the control of the association will be turned over the residents. The Class B Membership is the Delarant and shall be entitled to three (3) votes for each lot owned. The Class B Membership shall cease and be converted to Class A Membership on the earlier of ninety (90) days of the date on which the total votes outstanding in the Class A Membership equals the total votes outstanding in the Class B Membership, the first day of January, 2023 or at any time by written notice of the Declarant to the Association that it wishes to convert all of its Class B Memberships to Class A Memberships. Title to Common Areas: Title to common areas has been transferred to the Homeowners Association and are not subject to lien or encumbrance at this time. Membership: There are two types of memberships at this time. The Class B Membership is the Declarant. The Class A Membership is the purchaser/owner of the lots. The Class B Membership shall cease as stated above in the Control of Association. PAYMENTS TO PROPERTY OWNERS ASSOCIATIONS ARE SUBJECT TO CHANGE IN ACCORDANCE WITH RECORDED RESTRICTIONS. SAID ASSOCIATION MAY ALSO IMPOSE SPECIAL ASSESSMENTS.

9 Topography: The Land is generally level. Flooding and Drainage: SUBDIVISION CHARACTERISTICS The subdivision is not subject to any known flooding or drainage problems. Richard R. Norton, P.E. of CMX L.L.C, in his letter dated December 20, 2004, has cited in part: This is to certify that to the best of our knowledge, Surprise Farms Phase 3 Parcel 3, a subdivision located in the east half of Section 3, Township 3 North, Range 2 West, in Maricopa County, Arizona, as recorded in Book 709, Page 32 of Maps, Maricopa County Recorders, lies within a Flood Zone X area according to the Federal Emergency Management Agency (FEMA) Community Number 04013C1145G (Surprise), Panel Number 1145 of 4350, Flood Insurance Rate Maps for Maricopa County, dated July 19, Zone X of the FEMA Map is defined as: Zone X : Areas of the 500 year flood; areas of 100 year flood with average depths of less than one foot or with drainage areas less than one square mile; and areas protected by levees from the 100 year flood. To the best of our knowledge, elevations of all finished floors have been designed to be above the 100-year flood event. According to FEMA, flood insurance is available in participating communities in Zone X, but is not required by regulation is this flood zone. Soils: This subdivision is subject to subsidence or expansive soils. James E. Weaver, P.E. of Alpha Geotechnical & Materials, Inc., in his letter dated May 4, 2004, has cited, in part: The purpose of this Geotechnical exploration was to evaluate the general surface and subsurface conditions at the referenced site, and to present geotechnical design recommendations for foundations and slabs for the proposed structures and pavement. Geotechnical Site Reconnaissance The subject property consists of 143 acres of land southwest of Citrus Road and Bell Road (Parcels 1-5) and southwest of 175 th Avenue and Bell Road (Parcel 6) in Surprise, Arizona,. During our site reconnaissance, the ground surface was found to be relative level and dry. The site appeared to be used as agricultural fields in the past. There were small quantities of weeds and brush. We observed no evidence of prior structural development or earthwork on the site. FORM P 1/22/2009 9

10 Project Description Based on information provided by our client, we understand the proposed new construction will consist of a 613 lot, single-family residential development of one and two-story buildings. We understand earthwork will consist of minor (less than 4 ) cut and fill grading for construction of building pads for the homes. Construction will include post-tensioned slabs or conventional concrete slab-on-grade floors with shallow spread-type foots, and frame/masonry bearing walls. We have not been provided with structural loads. However, based on our previous experience with similar structures, we estimate the maximum column and wall loads for the structures will be about 30 kips and 1.5 KLF, respectively. Site Drainage Positive drainage is a key to the successful performance of any foundation or slab-on-grade. Good surface and subsurface drainage should be established during and after construction to prevent the soils below or adjacent to the building areas from becoming wet. Watering of plants should be avoided adjacent to the buildings, unless potential moisture increase in foundation bearing soils has been incorporated into the overall foundation design. Desert-type landscaping is advisable near the building and pavement areas. Plants, which require more water, should be located and drained away from the structural and pavement areas. Foundations Post-tensioned slabs or shallow spread footing bearing on native soils or property compacted engineer fills are recommended to support the structures. We anticipate that settlements for foundations designed in accordance with the above recommendations, will be within tolerable limits for a single footing type: i.e. total settlements should not exceed ¾ inch, and differential settlements should not exceed ½ inch. Additional foundation movements could occur if water from any source infiltrates the foundation soils. As discussed earlier, positive drainage is critical during and after construction. Conclusion Based on our findings, the site is considered suitable for single family residences imposing relatively light foundation loads provided slab/foundation systems are properly designed, specified compaction for fill material is used, and foundation bearing soils are not exposed to moisture infiltration or moisture content fluctuation. Adjacent Lands and Vicinity: NORTH: PAD (Planned Area Development) EAST: PAD (Planned Area Development), Willow Canyon High School SOUTH: PAD (Planned Area Development), Elementary School and Park WEST: PAD (Planned Area Development) FORM P 1/22/

11 NOTE: Owners of the adjacent land described above may seek to rezone their property, may seek zoning variances for their property or may modify their site plan within existing zoning. Consequently, no assurance can be given that the zoning or uses for the adjacent lands will not change from that described above. Purchases should contact the City of Surprise Planning Department at (623) or Maricopa County Planning and development at (602) for up-to-date information. North Arizona Traditions Golf Club, approximately ¾ mile Beardsley Canal, approximately 1 mile Trilby Wash, approximately 1 ¾ miles Highway 60 (Grand Avenue), approximately 6 miles Burlington Northern/Santa Fee Railroad, approximately 5 miles Northeast Great Eagle Golf Course, approximately 1 mile Lutheran Church, approximately 1 ¼ miles Methodist Church, approximately 1 ½ miles Roman Catholic Church, approximately 1 ¾ miles Proposed 12-acre commercial center, approximately 1 ¾ miles Sun City Grand Master Planned Community, approximately 2 miles Granite Falls Golf Club, approximately 1 ¼ miles Cimarron Golf Club, approximately 2 miles Desert Sprigs Golf Club, approximately 3 miles Sun Village Golf Course, approximately 4 ¾ miles Fire Station and Law Enforcement Center, approximately 4 ½ miles Del E. Webb Memorial Hospital, approximately 5 miles Burlington Northern/Santa Fe Railroad, approximately 5 miles Grand Avenue (U.S. Highway 60), approximately 5 miles Surprise Towne Center, approximately 5 miles Northwest Beardsley Canal, approximately ½ mile Levee, ¾ mile Trilby Wash Basin, approximately ¾ mile Trilby Wash, approximately 2 ¼ miles Northwest Regional Landfill, approximately 3 ½ miles County Land, approximately 4 miles City of Phoenix Northwest Site Landfill, approximately 4 ½ miles Volvo Proving Grounds, approximately 5 ¾ miles Speedworld Motorplex, approximately 6 miles Luke AFB Auxiliary Airfield #1, approximately 6 ½ miles FORM P 1/22/

12 South County Land, approximately 1 ¼ miles Canal, approximately 4 miles Arizona State Prison Complex Perryville, approximately 10 ½ miles Southeast Fire Station, approximately 1 ½ miles Agricultural land, approximately 1 ½ miles County land, approximately 1 ½ miles Paradise Education Center, approximately 2 ¾ miles Cotton Gin, approximately 3 miles APS Waddell Substation, approximately 3 miles Carden Traditional School of Surprise, approximately 3 ¼ miles Luke Air Force Base, approximately 7 miles Southwest Beardsley Canal, approximately ½ mile County Land, approximately ¾ mile Levee, approximately 1 mile Trilby Wash Basin, approximately 1 mile White Tank Mountain Regional Park, approximately 3 ½ miles East Estrella Freeway (Loop 303), approximately 1 ¾ miles Surprise Stadium, approximately 4 ¼ miles Surprise Aquatic Center, approximately 4 ¼ miles Library, approximately 4 ¼ miles Highway 60 (Grand Avenue), approximately 6 ¼ miles Burlington Northern/Santa Fe Railroad, approximately 6 ¼ miles West Beardsley Canal, approximately ½ mile County Land, approximately ½ mile Levee, approximately ¾ mile Trilby Wash Basin, approximately ¾ mile White Tank Mountain Regional Park, approximately 2 ¾ miles Subdivider advises that homes situated adjacent to or in the vicinity of commercial property, worship site(s), school site(s), agricultural land, streets and roadways, trails and open space areas, construction related operations may experience an additional amount of noise, dust, wildlife, lighting, signage, as well as, pedestrian and vehicular traffic typically associated with these types of activities. Subdivider and its agents make no representation regarding how the property not owned by the Master Developer or Subdivider, surrounding the Master Planned Community will be used or developed. Existing and/or proposed use of adjacent property is subject to change is not within the Master Developer or Subdivider s control. FORM P 1/22/

13 As a result of the natural gas facilities available to this subdivision, major natural gas lines in the vicinity of this community are necessary in order to service the surrounding areas. For further information regarding natural gas lines, purchasers should contact Southwest Gas Corporation at or log onto their website at Additional information regarding gas pipelines is also available on the utility section website of the Arizona Corporation Commission at The City of Phoenix has begun the process of acquiring and permitting a new landfill site known as the SR 85 Site. This Tier 1 site is located west of SR 85, south of Patterson Road in southwest Phoenix. The six (6) Tier 2 sites will not be actively pursued unless unforeseen problems arise with the SR 85 site. One of the Tier 2 sites, known as the Northwest Site, is located near the existing Northwest Regional Landfill (Deer Valley Road and 195 th Avenue). It is located on State Trust Land and privately owned land, and is partially within the City of Surprise boundary. For additional information please contact City of Phoenix at (602) or visit the project website at Luke Air Force Base is located approximately 7 miles southeast. Lots may be subject to over flight by jet aircraft and subject to aircraft noise as a result of flight operations. For further information regarding current and future flight patterns, aircraft volume, and flight operations, purchasers should contact Luke Air Force Base Department of Relations at (623) Luke Air Force Base Auxiliary Air Field is located 6 ½ miles to the northwest. Property in the vicinity of the subdivision is currently agricultural. Agricultural property may be subject to chemical treatment, including aerial spraying of chemicals, defoliants, pesticides and fertilizers, and the use of farm equipment, which may produce dust, chemicals and particles in the air, unpleasant odors and noise. Purchaser should carefully investigate in person the potential impact of such noise, odor, dust, spraying, irrigation or other effects resulting from the nearby agricultural uses, as these conditions may be disturbing to some individuals. For more information on the future uses of the agricultural property, purchasers should contact the City of Surprise Planning and Zoning Department at (623) Estrella Freeway (Loop 303) is located approximately 1 ¾ miles east of the subdivision, as a result nuisances such as noise, vibration, fumes, dust, fuel particles, and other effects from construction and use of the freeway may be experienced. For further information, please contact the Arizona Department of Transportation at (602) or the City of Surprise at (623) Furthermore, due to the proximity of freeways/highways, canals, dry river channels, railroad tracks, etc., lot owners may possibly experience traffic, noise, dust, odors, and other nuisances associated with these areas. These areas may also pose as safety hazards to unsupervised children and adults. Purchasers are encouraged to drive within the vicinity of the subdivision to determine whether there may exist additional items of concern. Volvo Proving Grounds, due to the proximity of this testing facility, this Subdivision may experience noise, dust, vibration, fumes and fuel particles, traffic, and other effects which may be disturbing to some individuals. Purchaser is advised to independently investigate this matter. FORM P 1/22/

14 Natural Gas Pipelines: Natural Gas pipelines are installed for residential use of the homes. For further information regarding natural gas lines purchasers should contact Southwest Gas Corporation at or log onto their website at Additional information regarding gas piplines is also available on the utility section website of the Arizona Corporation Commission at High Voltage Lines: NONE SUBDIVISION USE AND RESTRICTIONS Use: This offering is for lot with dwelling (Improved Lot). Zoning: Single family Residential. Conditions, Reservations and Restrictions: As stated in Declaration of Covenants, Conditions, Restrictions, Assessments, Charges, Servitudes, Liens, Reservations and Easements for Surprise Farms III, and as stated in the Articles of Incorporation and Bylaws of the Homeowners Association, existing zoning and any and all other effects resulting from Schedule B items as shown on the Title Report. 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 Surprise Planning and Zoning Department. Restrictions are recorded as cited in the following title exceptions and per the subdivision plat. Military Airport: AIRPORTS Luke Air Force Base is located at West Eagle Street, Glendale Arizona, approximately 7 miles southeast of the subdivision. NOTE: MILITARY FLIGHTS MAY PRODUCE AIRCRAFT NOISE AS A RESULT OF MILITARY FLIGHT OPERATIONS. SEE ATTACHED LUKE AIRFORCE BASE EXHIBITS. FORM P 1/22/

15 Public Airport: Glendale Municipal Airport is located at 6801 N. Glen Harbor Blvd. Glendale, Arizona, approximately 12 miles east of the subdivision. Phoenix Sky Harbor International Airport is located at 3400 East Sky Harbor Blvd., Phoenix, Arizona approximately 29 miles southeast of the subdivision. Airport: Sky Harbor International Airport - Commercial Glendale Municipal Airport Private TITLE Title to this subdivision is vested in Surprise Phase 3 Parcel 4, LLC Subdivider s interest in this subdivision is Fee Simple as evidenced by Special Warranty Deed recorded October 28, 2004 in 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 30, 2012 issued by Greystone Title Agency. You should obtain a title report and determine the effect of the listed exceptions. EXCEPTIONS: SEE EXHIBIT A ATTACHED Sales: METHOD OF SALE OR LEASE Your Vested Interest will be conveyed by the Subdivider by delivering a recorded Special Warranty Deed to you. Release of Liens and Encumbrances: Subdivider has advised that arrangements have been made with the lender in the aforementioned deeds of trust for the release of an individual lot upon completion of all payments and performance of all the terms and provisions required of the purchaser under the purchase contract between Subdivider and such purchaser. Use and Occupancy: Purchasers will be able to use and occupy their lot/unit upon close of escrow. Leasehold Offering: Will any of the property be leased? Yes No FORM P 1/22/

16 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 2016 is $ per $ assessed valuation. The estimated property tax for an improved lot (lot with dwelling), based on the above tax rate and average sales price of $245, is approximately $2, Special District Tax or Assessments: Maricopa County Municipal Water Conservation District No. 1 Current assessments are approximately $6.00 per acre per year. For more information, contact the district at (623) Surprise Farms Phase III Street Lighting Improvement District Annual assessments are payable through County property taxes. Purchasers should contact the City of Surprise Public Works Department for more information at (623) Central Arizona Water Conservation District (CAWCD) Property is subject to assessments imposed by the CAWCD for member ship in the Central Arizona Groundwater Replenishment District (CAGRD). Annual assessments are payable with and in addition to the property tax billing from the County treasurer. A lot purchaser s share of the costs will depend on the amount of water used. On average, homes in the CAGRD are projected to use about 10,000 to 15,000 gallons per month. Purchasers should contact the Central Arizona Water Conservation District at (623) for more information. As disclosed in the Community Association documents (i.e., CC&Rs, Articles of Incorporation and Bylaws), there may be other special assessments, taxes or fees to be paid by purchaser. Please refer to Community Association documents for additional information. Article IV of the recorded Declaration of Covenants, Conditions, Restrictions, Assessments, Charges, Servitudes, Liens, Reservations and Easements for Surprise Farms, recorded March 21, 2002, in instrument , Article VII states, in part: FORM P 1/22/

17 Section 7.5. Special Assessments for Capital Improvement and Extraordinary Expenses: In addition to the annual assessments authorized above, the Association may levy, in any assessment Period, a Special Assessment applicable to that period only for the purpose of defraying, in whole or in part, the cost of any construction, reconstruction, repair or replacement of a capital improvement of the Common Area, including fixtures and personal Property related thereto, or for the purpose of defraying other extraordinary expenses, provided that any such assessment shall have the assent of two-thirds (2/3) of the votes of each class of Members who are voting in person or by proxy at a meeting duly called for such purpose. The provisions of this Section are intended to precluded or limit the assessment, collection or use of Annual Assessments for the aforesaid purpose. Section 7.6. Special Use Fees: The Association is authorized to bill for, administer, disburse, collect and sue for Special Use Fees and the obligation of payment thereof shall be secured by the Assessment Lien. Special Use Fees may be used to cover the costs of maintain particular Common Area Improvements designed to benefit less than all of the Members of the Association. Such Common Area Improvements may include, but shall not be limited to, private streets, security gates and enhanced landscaping. All Special Use Fees collected shall, when imposed in connection with a particular Improvement, be separately accounted for and shall be expended on the particular Improvement to which they pertain. The applicable Tract Declaration for the affected Lot(s) or Parcels(s) shall further describe the purpose of the Special Use Fees. Section Working Capital Fund: To ensure that the Association shall have adequate funds to meet its expenses or to purchase necessary equipment or services, each Person who purchases from a Developer a Lot which is restricted by a Tract Declaration to Single Family Residential Use, Cluster Residential Use or Residential Condominium Development Use shall pay to the Association immediately upon becoming the Owner of the lot a sum equal to one-sixth (1/6 th ) of the current Annual Assessment for the Lot, and each Person who purchases a Lot or Parcel restricted by a Tract Declaration to a use other than Single Family Residential Use, Cluster Residential Use or Residential Condominium Development Use from the Declaration shall pay to the Associate at the time such Lot or Parcel no longer qualifies for a reduced rate of Assessment pursuant to Section 7.3 of this Declaration a sum equal to one sixth (1/6 th ) of the current Annual Assessment for such Lot or Parcel. Funds paid to the Association pursuant to this Section may be used by the Association for payment of operating expenses or any other purpose permitted under this Declaration including, but not limited to, the establishment of reserves. Payments made pursuant to this Section shall be nonrefundable and shall not be offset or credited against or considered as an advance payment of any Assessments levied by the Association pursuant to this Declaration. Section Transfer Fee: Each Person other than a Developer who purchases a Lot or Parcel shall pay to the Association immediately upon becoming the Owner of the Lot or Parcel a transfer fee in such amount as is established from time to time by the Boards. AMOUNT OF TAXES AND ASSESSMENTS SET FORTH ABOVE ARE APPROXIMATE ONLY AND SUBJECT TO CHANGE. FORM P 1/22/

18 YOU ARE ADVISED TO READ THE RECORDED DECLARATION OF (COVENANTS, CONDITIONS AND RESTRICTIONS), ARTICLES OF INCORPORATION, DECLARATION OF CONDOMINIUM, BYLAWS FOR THIS SUBDIVISION TO DETERMINE THE RIGHTS OF LOT/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 LOT/UNITS. FURTHER, YOU SHOULD DETERMINE FOR YOURSELF IF SUBDIVIDER S ARRANGEMENTS AND PLANS FOR THE PAYMENT OF ASSESSMENTS ON UNSOLD LOTS/UNITS WILL BE SUFFICIENT TO FULFILL THE NEEDS, DEMANDS AND FINANCIAL OBLIGATIONS OF THE ASSOCIATION, AS SET FORTH IN THE DECLARATION AND BYLAWS. FORM P 1/22/

19 EXHIBIT A 1. Taxes for the full year of (The first half is due October 1, 2017 and is delinquent November 1, The second half is due March 1, 2018 and is delinquent May 1, 2018.) 2. Any charge upon said land by reason of its inclusion in The Surprise Farm III Community Association. 3. Any charge upon said land by reason of its inclusion in Maricopa County Municipal Water Conservation District No Any charge upon said land by reason of its inclusion in SU_AZ Surprise Farms PH3. 5. Easements, restrictions, reservations, conditions and set-back lines as set forth on the plat recorded as Book 709 of Maps, Page 37, 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 USC 3604(c). 6. Covenants, conditions and restrictions in the document recorded as of Official Records and re-recorded as of Official Records and Supplemental Declaration recorded October 28, 2004 as of Official Records, 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 Title 42, Section 3604(c), of the United States Codes. 7. Covenants, conditions and restrictions in the document recorded as of Official Records and Agreement and Notice of Municipal Provider Reporting Requirements recorded as of Official Records, 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 Title 42, Section 3604(c), of the United States Codes. 8. Covenants, conditions and restrictions in the document recorded as of Official Records, 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 Title 42, Section 3604(c), of the United States Codes. 9. The terms, conditions and provisions contained in the document entitled "Memorandum of Surprise Farms Development Agreement" recorded December 03, 1999 as of Official Records. FORM P 1/22/

20 10. A Deed of Trust to secure an indebtedness in a Revolving Loan Agreement with a credit limit in the principal amount of $20,000,000.00, together with any and all other obligations secured thereby, recorded February 08, 2017 as of Official Records. Dated: February 08, 2017 Trustor: Surprise Phase 3 Parcel 4 LLC, an Arizona limited liability company Trustee: U.S. Bank National Association, a national banking association Beneficiary: U.S. Bank National Association, a national banking association (Covers More Property) 11. Water rights, claims or title to water, whether or not shown by the public records. NOTE: There are no further matters of record concerning this subdivision through the date of this report. FORM P 1/22/