STATE OF ARIZONA DEPARTMENT OF REAL ESTATE SUBDIVISION PUBLIC REPORT

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1 STATE OF ARIZONA DEPARTMENT OF REAL ESTATE SUBDIVISION PUBLIC REPORT FOR ARROYO VISTA HEIGHTS TRACT 4077G UNIT 1 aka RAMSEY HOMES AT ARROYO VISTA Registration No. DM SUBDIVIDER Ramsey Homes at Arroyo Vista, LLC 3936 Frontage Road Bullhead City, Arizona July 20, 2007 Effective Date PROPERTY REPORT DISCLAIMER This report is NOT A RECOMMENDATION NOR AN ENDORSEMENT by the State of Arizona of this land but is provided for informational purposes ONLY. The report reflects information provided by the subdivider and obtained by the Department in its review process in accordance with the provisions of Title 32, Chapter 20, Article 4, of the Arizona Revised Statutes, as amended. NOTE that not all of the information in this report has been verified by the Department; certain information has been accepted by the Department as true and accurate based on attestation of the subdivider and/or the Subdivider s agents. You should verify all facts before signing any documents. The Department has not passed upon the quality or quantity of any improvement or structure and does not assume responsibility in either event. PHOENIX OFFICE: TUCSON OFFICE: 2910 N. 44 th Street 400 West Congress Suite 100 Suite 523 Phoenix, Arizona Tucson, Arizona (602) ext. 400 (520)

2 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 CONTRACTS OR AGREEMENTS FOR THE PURCHASE OF AN UNIMPROVED LOT (WITHOUT A BUILDING)* MAY BE RESCINDED BY YOU WITHOUT CAUSE BY SENDING OR DELIVERING WRITTEN NOTICE OF RESCISSION BY MIDNIGHT OF THE SEVENTH CALENDAR DAY FOLLOWING THE SIGNING. 3.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. 2

3 GENERAL This report includes: LOTS 7 through 12, inclusive, and LOTS 20 through 28, inclusive, and LOTS 32-48inclusive BLOCK 18, LOTS 19 through 24, inclusive, BLOCK 19, LOTS 9 and 10, BLOCK 20, LOTS 1 through 36, inclusive, BLOCK 21, LOTS 49 through 56, inclusive, BLOCK 22, and LOTS 10 through 14, inclusive, BLOCK 23. The map of this subdivision is recorded in Fee No , with Document Correction recorded in Fee No , records of Mohave County, State of Arizona. The subdivision is approximately ± acres in size. It has been divided into 89 lots. Lot boundaries will be monumented by a 5/8 rebar with a cap stamped RLS 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: The end of E. Corwin Road at Arroyo Vista Drive, Bullhead City, Mohave County, Arizona. The nearest major crossroad is Silver Creek Rd/CR-155. Start out going West on Silver Creek Rd/CR-155 toward Bullhead Parkway for.1 miles. Turn left onto Arroyo Vista Dr. and go 1.0 miles. Turn left onto E. Corwin Rd. and go.1 miles. End at E. Corwin Rd & Arroyo Vista Dr. and entrance to subdivision. SUBDIVISION CHARACTERISTICS Topography: Subdivision is described as relatively level with some washes and arroyos. Flooding and Drainage: In his letter dated July 3, 2007, R. Larry Morse, P.E., R.L.S. of ARQ Engineering, LLC, states in part that property is in a Flood Zone X, as shown on Fema Firm Panel No F revised June 2, A Flood Zone X is defined as an area determined to be outside the 500 year flood plain. This subdivision has been designed to convey stormwater from a 100 year storm event within the roadways. Grading of the building pads has been designed such that finished floor elevations, of all lots, will be a minimum of 1 foot above the 100 year storm flood elevation. Flood insurance will not be required for any of the lots within the Unit 1, Tract 4077G Subdivision. Soils: Property is not subject to expansive or subsidence soils. Engineer s geotechnical report on file. Adjacent Lands and Vicinity: Subdivision is surrounded by future Arroyo Vista Heights phases, BLM or vacant lands. To the North of subdivision is future Arroyo 3

4 Vista Heights Tract 4077-Unit G for Single Family Residential, to the South is zoned VL- RUR, Nonsubdivided Land, to the East is BLM undeveloped property and to the West is future Arroyo Vista Heights Tract 4077-Unit E for single family residential. AIRPORTS Airport: Laughlin-Bullhead International Airport, 2550 Laughlin View Drive, Bullhead City approximately 8.16 miles. UTILITIES Electricity: Mohave Electric Cooperative (928) Electricity is presently adjacent to property and will be completed to the lot lines by subdivider by November 30, 2007, with the costs included in purchase price. From the lot line to the dwelling, the costs will be included in the purchase price for Improved Lots. For Unimproved Lots, costs will be approximately $7.00 per linear foot and, Vader Tank of Bullhead City (928) will install a 200-amp pole with service box for $ All purchasers will be required to pay a deposit of $75.00 to $ based on individual credit circumstances, a $25.00 plus tax hook-up fee and a $5.00 membership fee. Please contact utility company for further details. Fees and/or deposits are subject to change. Street Lights: Streetlights will not be offered within this subdivision. Telephone: Citizens Communications (928) Telephone is presently adjacent to property and will be completed to the lot lines by subdivider by November 30, 2007, with the costs included in purchase price. From the lot line to the dwelling, the costs will be included in the purchase price for Improved Lots. For Unimproved Lots: Costs for Citizens to connect from lot line to dwelling is included in a $60.00 connection fee. All purchasers will be required to pay a $60.00 connection fee and an average deposit of $75.00 and upward, based on individual credit circumstances. Please contact utility company for further details. Fees and/or deposits are subject to change. Cable: NPG Cable, Inc. of Bullhead City (Cablevision) (928) Cable is presently adjacent to property and will be completed to the lot lines by subdivider by November 30, 2007, with the costs included in purchase price. From the lot line to the dwelling, the costs will be included in the purchase price for Improved Lots. For Unimproved Lots, Trenching costs are approximately $15.00 per linear foot. If open trenches are available then Cablevision does not charge for cabling to the lot line. All purchasers will be required to pay an installation fee of $39.95 for one room and $9.99 for each room thereafter. Basic minimum cable fee is $38.80 per month. First month s billing is due in advance at time of installation. Please contact utility company for further details. Fees and/or deposits are subject to change. 4

5 Propane Gas: Please see Will Serve Letter from Kelly Kite of Ferrellgas, attached herein as Exhibit B, with all requirements to be met and costs to be paid by lot purchasers in order to receive service. Water: Bermuda Water Company (928) , no website available Water is presently adjacent to property and will be completed to the lot lines by subdivider by November 30, 2007, with the costs included in purchase price. From the lot line to the dwelling, the costs will be included in the purchase price for Improved Lots. For Unimproved Lots, costs to purchasers to complete facilities from lot line to dwelling are approximately $6.00 per linear foot. All purchasers will be required to pay a $55.00 minimum deposit based on individual credit circumstances plus a $35.00 establishment fee. Please contact utility company for further details. Fees and/or deposits are subject to change. Sewage Disposal: The City of Bullhead City, (928) will provide collection, treatment, and disposal of sewage via public sewer system pursuant to the City of Bullhead City Sewer Schedule (See Engineer s Letter attached herein as Exhibit C ). Subdivider has installed dry sewer systems on-site for future connection to the City of Bullhead City, costs included in purchase price for both Improved and Unimproved lots, estimated to be completed by November 30, Individual on-site wastewater treatment systems will not be temporarily required as the scheduled hook-up is imminent. The costs for completion of facilities from lot line to a dwelling for Improved lots are included in purchase price. For Unimproved lots, costs for hookup from lot line to dwelling are approximately $3, All purchasers will be required to pay an establishment fee of $90.00, a sewer application fee of $10.00 and a sewer tap fee of $ Monthly fees are approximately $30.00/per month. Fees and/or deposits are subject to change. Please contact the utility company for further details. The ADEQ has issued a Certificate of Approval of Sanitary Facilities for Subdivisions Incorporating On-Site Sewage Systems based in part on their approval of the ADEQ Construction Authorization Approval of Dry Sewers for Arroyo Vista Estates, Tract 4077G, ADEQ File Number , LTF#38584, issued on April 5, The ADEQ has issued the Certificate of Approval of Sanitary Facilities for Subdivisions, with the stipulation that the following information be disclosed: SEE EXHIBIT D ATTACHED HEREIN 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. STREETS, ROADS AND DRAINAGE 5

6 Access to the Subdivision: Permanent legal access for egress and ingress is available via Corwin Road. Asphalt paved public streets are complete and maintained by Mohave County. Access within the Subdivision: Asphalt paved public streets will be completed by Subdivider, costs included in purchase price, with an estimated completion date of November 30, Drainage: No flood protection or drainage facilities will be installed within this subdivision. 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. 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) COMMON, COMMUNITY AND RECREATIONAL FACILITIES Within the Subdivision: No common areas are included within this phase, but may be offered in future phases, hence the inclusion of common area transfer language contained within the CC&Rs and in the Arroyo Vista Heights Homeowners Association Bylaws. Within the Master Planned Community: Subdivider advises that this subdivision is not part of a Master Planned Community ASSURANCES FOR COMPLETION Assurances for Completion of Subdivision Facilities: Pursuant to the plat, recorded in Fee No , records of Mohave County, assurance in the form of a cashier s check is on deposit with the City of Bullhead City in the amount necessary to guarantee completion of all facilities improvements in this subdivision. Assurances for Maintenance of Subdivision Facilities: Subdivider advises that all roads are to be maintained by the City of Bullhead City upon completion and acceptance. 6

7 Facilities will be maintained by their respective utility companies and sewer will be maintained by the City of Bullhead City after completion of hookup. LOCAL SERVICES AND FACILITIES Schools: Diamond Back Elementary School, 2550 Tesota Way, Bullhead City, AZ approximately 3.12 miles; Bullhead City Junior High School, 1062 Hancock Rd., Bullhead City, AZ approximately 4.82 miles; Mohave High School, 2251 Highway 95, Bullhead City, AZ approximately 4.34 miles. School district provides bus service to all designated schools. SCHOOL FACILITIES AND BUS SERVICE MAY CHANGE. YOU SHOULD CONTACT THE LOCAL SCHOOL BOARD REGARDING THE CURRENT LOCATION OF SCHOOLS AND BUS SERVICE. Shopping Facilities: Smith s Food & Drug 4747 Highway 95, Fort Mohave, AZ 2.75 miles. Public Transportation: Bullhead Area Transit Service (BATS) offers a pick-up service: Dial-a-Bat provides curb-to-curb, demand response service to the community to meet the needs of the elderly, disabled, those who lack personal vehicle and general public transportation by contacting the dispatcher to schedule a ride at (928) or (866) (requires at least two hours lead time to schedule a ride). Medical Facilities: Colorado River Medical Center, 5300 Highway 95, Fort Mohave, AZ (3.67 miles away) and Western Arizona Regional, 2735 Silver Creek Rd., Bullhead City, AZ (4.22 miles away). Fire Protection: Bullhead City Fire Department Costs included in property taxes. Ambulance Service: Emergency Medical Service is available by calling Interfacility Ambulance Transport, part of the BHC Fire Department: In addition to emergency medical response at the paramedic level, Bullhead City Fire Department provides transportation of the sick and injured from our community to other facilities throughout the southwest including Arizona, California, Nevada and other western states that meet the needs of the patient. Patients are also transported between nursing homes and the hospital by Bullhead City Fire Department ambulances. Police Services: Bullhead City Police Department Garbage Services: Tri-State Refuse (928) $35.64/per quarter. LOCATIONS AND COSTS OF THE ABOVE SERVICES AND FACILITIES MAY CHANGE. YOU SHOULD VERIFY THEIR CURRENT LOCATIONS AND COSTS PRIOR TO PURCHASE. 7

8 SUBDIVISION USE AND RESTRICTIONS Use: This offering is for Improved Lot (Lot with Dwelling) and Unimproved Lot (Vacant Lot) Zoning: (Single Family Residential Homes) Conditions, Reservations and Restrictions: Declaration of Covenants, Conditions and Restrictions for Arroyo Vista Heights (Mohave County, Arizona) recorded, June 27, 2007, in Book 6857, Page 879. YOU ARE ADVISED THAT THE DECLARATION OF COVENANTS, CONDITIONS AND RESTRICTIONS FOR THIS SUBDIVISION PROVIDES FOR AN ARCHITECTURAL CONTROL COMMITTEE. 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 Mohave County Recorder. Information about zoning may be obtained at the Office of the Bullhead City Planning and Zoning Department. Restrictions are recorded as cited in the following title exceptions and per the subdivision plat. EXCEPTIONS: SEE EXHIBIT A ATTACHED TITLE Title to this subdivision is vested in Ramsey Homes at Arroyo Vista, LLC, an Arizona Limited Liability Company Subdivider s interest in this subdivision is evidenced by fee simple 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 June 21, 2007 issued by Chicago Title. You should obtain a title report and determine the effect of the listed exceptions. 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 any unpaid balance. YOU SHOULD READ THESE DOCUMENTS BEFORE SIGNING THEM 8

9 PURCHASERS ARE ADVISED THAT EARNEST MONEY DEPOSITS, DOWN PAYMENT AND OTHER ADVANCED MONEY WILL BE PLACED IN A NEUTRAL ESCROW. Release of Liens and Encumbrances: Upon entering into escrow, it will be required for any existing deed of trust on the subject property to be released before closing escrow. Individual lot release provisions are provided for pertaining to the recorded deed of trust. Use and Occupancy: Purchaser will be permitted to use and occupy his property upon close of escrow and recordation of the deed. Leasehold Offering: None available 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 2007 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 $300,000.00, is $2, The estimated property tax for an Unimproved Lot (vacant), based on the above tax rate and average sales price of $89,000.00, is $ Special District Tax or Assessments: Included in Property Taxes: The Tax Jurisdiction for Sewer District #15 Class A Bonds; Sewer District #2 Class A Bonds; and, Sewer District #2 Class B Bonds at the 2007 current rate of.6826 per $ assessed valuation for said jurisdictions for an Improved Lot (listed above) would be $ and for an Unimproved Lot (listed above) would be $48.60 (included in above-estimated total taxes per year). AMOUNT OF TAXES AND ASSESSMENTS SET FORTH ABOVE ARE APPROXIMATE ONLY AND SUBJECT TO CHANGE. PROPERTY OWNERS ASSOCIATIONS Name and Assessments: Arroyo Vista Heights Homeowners Association, Inc. (Arizona nonprofit corporation). Assessments shall be classified as either Regular or Supplementary and are to be based on each lot owned by owner or owners and determined by the estimated operating costs and expenses (budget) that will be payable in that fiscal year or partial fiscal year to fulfill the regular operating functions and obligations of the Association in that fiscal year or partial fiscal year, including amounts necessary to cover obligations made in 9

10 connection with, or contemplated under, any previously approved budgets, plus and amount sufficient to provide a reasonable carry-over reserve for the next fiscal year. Transfer from Class B (Declarant) to Class A (Property Owners) will be upon the happening of any of the following events, whichever occurs earlier: 1. When the total votes outstanding in the Class A Membership equal the total votes outstanding in the Class B Membership, taking into account units in subsequent phases to be annexed; 2. On December 31, 2020; or 3. When, in its discretion, the Class B Member so determines. Title to the common areas will be transferred to the association at such time as the association has been formed and one lot has closed escrow. Declarant shall convey to the Association fee simple title to the common areas free and clear of all monetary encumbrances and liens except those imposed by the County of Mohave, and subject to the easements, Conditions, Restrictions and Reservations then of record. Prior to the turnover date, Declarant shall be responsible for the maintenance of the common areas, including any monument signage and landscaped areas thereon. 10

11 Exhibit A 1. Unpatented mining claims; water rights, claims or title to water; reservations or exceptions in patents or in acts authorizing the issuance thereof, including but no limited to those shown in the Patent to said land, whether or not of public record. THIS IS NOT A COMMITMENT TO INSURE OR A TITLE INSURANCE POLICY. 1. Taxes for the year 2006 have been paid in the amount of $ , under Assessors Tax Parcel No (Includes additional property). 2. Taxes for the year 2006 have been paid in the amount of $ , under Assessors Tax Parcel No (Includes additional property). 3. Taxes for the year 2006 have been paid in the amount of $552.58, under Assessors Tax Parcel No (Includes additional property). 4. Taxes for the year 2007, a lien in an amount to be determined, but not yet due or payable. 5. The liabilities and obligations against said land by reason of its inclusion within the boundaries of the following districts. BULLHEAD ELEMENTARY SCHOOL DISTRICT, COLORADO UNION HIGH SCHOOL DISTRICT, BULLHEAD FIRE COMPANY DISTRICT and BULLHEAD CITY. 6. Easements, set-backs, reservations and restrictions, as shown on the recorded plat of said subdivision. 7. All matters set forth in Covenants, Conditions and Restrictions in the Declaration of Restrictions, but omitting any covenants or restrictions, if any, including, but not limited to those based upon race, color, religion, sex, sexual orientation, handicap, familial status, marital status, disability, ancestry, source of income, or national origin, as set forth in applicable state or federal laws, except to the extent that said covenant or restriction is permitted by applicable laws, as contained in instrument recorded in Book 6857 of Official Records, page Easement and rights incident thereto for water line, as set forth in instrument recorded in Book 1491 of Official Records, page Proper showing that all assessments and charges due ARROYO VISTA HEIGHTS HOMEOWNERS ASSOCIATION are paid in full to Close of Escrow. 10. Deed of Trust among RAMSEY HOMES, INC., an Arizona Corporation, TRUSTOR, FIRST NATIONAL BANK OF ARIZONA, TRUSTEE and FIRST NATIONAL BANK OF ARIZONA, BENEFICIARY, to secure $9,631,775.00, dated March 29, 2006, recorded March 31, 2006, in Book 6189 of Official Records, page 468. Assumption Agreement recorded April 23, 2007, in Book 6765 of Official Records, page

12 NOTE: No further matters appear of record in the indices of Mohave County, Arizona, affecting subject land through the date of this report. 12

13 Exhibit B May 9th, 2007 Chicago Title Insurance Company Attention: Nancy Frye-Swope 2202 Stockton Hill Rd. Ste. B Kingman, AZ RE: Arroyo Vista Heights Tract 4077G Unit 1 Dear Nancy; This letter is in response to your request for a statement of availability and cost for propane tank installation and service. Ferrellgas of Kingman will service the area you refer to in your letter. Our annual lease fees for tanks are as follows: gallon tank - $40.00 plus tax gallon tank - $50.00 plus tax gallon tank - $60.00 plus tax gallon tank - $65.00 plus tax Our prevailing price per gallon is $2.799 at this time. Our minimum delivery is 100 gallons. We have a one-time fee of $80.00 for delivery and set down of tank. We have pre-formed slabs for $80.00, if required. We also install lines and equipment at $80.00 per hour, plus material. All installations by our company or the property owner must meet and comply with all codes having jurisdiction. We also offer various specials through out the year. Please check with us when ready for the installation. At this time, we are offering a $120 tank set special, which includes complete set down, plus our first tank fill up is at a discount price. Thank you for your interest in our company. Sincerely, [signed] Kelly Kite Service Center District Manager KK/cas 13

14 2813 Beverly Ave., Kingman, AZ * * * Fax:

15 ARQ Engineering, LLC. Engineering and Survey Exhibit C Arizona Department of Real Estate July 3, N. 44 Street, Suite 110 Phoenix, AZ Subject: Arroyo Vista Estates Tract 4077G, Unit 1 To Whom It May Concern, The Arroyo Vista Estates Unit 1, Tract 4077G project located in Section 12, Township 19 North, Range 22 West of the Gila and Salt River Meridian, Mohave County, Arizona. The subdivider of Arroyo Vista Estates has installed a "Dry" On site Sewage Collection System and will not be installing any "On Site Wastewater Treatment Facilities". The City of Bullhead City is in the process of installing sewer mains that will connect to the subject property. The City and the subdivider plan to have all of the lots in the subject property tied into the City's public sewer system on or before November 30, If there should be any further questions regarding the above mentioned matter, please do not hesitate to contact our office. CC: Ramsey Homes Development RLM/c1d p/wp5l / /on sitesewagesystemo Respectfully, ARQ Engineering, LLC [SEALED] R. Larry Morse P.E.,R.L.S. President 3880 Frontage Road, Suite 20 * Bullhead City, Arizona *(928) Fax (928)

16 Exhibit D (Section 2.a. through 2.f. of Certificate of approval of Sanitary Facilities for Subdivisions) 2. The Public Report must include, but shall not be limited to, items 2.a. thru 2.f: a. The Subdivider or his/her agent shall disclose prior to sale of each approved lot of these ADEQ provisions and those of the ADEQ ATC for Drinking Water Facilities (Initial Lot owner). b. The owner of an approved lot shall obtain site-specific permits for construction and operation from Mohave County Health Department before constructing any on-site wastewater treatment facility or Arizona Department of Environmental Quality, if the County or City is not delegated authority to approve the on-site wastewater treatment system. c. When a public sewer system is available, all Approved Lots with on-site sewage facilities shall be abandoned and connected to the public sewer system within 6 months of sewer availability. The abandonment of on-site sewage facilities shall comply with ADEQ regulations. After sewer availability, all subsequent construction on any Approved lot shall be connected to the public sewer. d. If any approved lot is determined to be not suitable for construction and Operation of a conventional septic disposal system, the lot owner shall obtain site-specific construction and operating permits for an alternative on-site wastewater treatment facility from ADEQ or from the local agency authorized by ADEQ to issue such permits. The cost of an alternative on-site wastewater treatment facility may be in excess of $15,000. e. At the time of this ADEQ approval the following lots share a boundary with unsubdivided land: Block 24, Lots The required setback for on-site sewage systems (including the reserved disposal area) from unsubdivided land is 50 feet minimum unless the dwellings and other future improvements on the unsubdivided land will be served by a community water system or an appropriate waiver has been obtained from the adjacent property owner(s). f. This approval is based upon ADEQ evaluation of sanitary facilities for a single family dwelling with four or less bedrooms on each lot. Some lots may accommodate larger sewage disposal capacities, subject to local approvals. 16

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