DISCLOSURE STATEMENT KOOCANUSA VILLAGE - LAKEFRONT ESTATES June 8, 2017 Developer: Developer's Service: Address for 977230 ALBERTA LTD. c/o Bennett Jones LLP Barristers and Solicitors 2200 1055 West Hastings Street Vancouver, BC V6E 2E9 Attention: Larry R. Sandrin Developer's Business Address: 977230 Alberta Ltd. #117, 4950 106 Avenue S.E. Calgary, Alberta T2C 5E9 Attention: Dennis Hockett or c/o Leffler Law Office Box 1873 1361 7t1i Avenue Fernie, British Columbia VOB Attention: Gordon Leffler Developer's Real Estate Broker and Brokerage Address: At present, the Developer has not decided to retain a real estate brokerage firm to market the strata lots and will rely upon its own employees to do so. The Developer's employees are not licensed under the Real Estate Services Act and will not act on behalf of a purchaser. DISCLAIMER This Disclosure Statement has been filed with the Superintendent of Real Estate, but neither the Superintendent, nor any other authority of the government of the Province of British Columbia, has determined the merits of any statement contained in the Disclosure Statement, or whether the Disclosure Statement contains a misrepresentation or otherwise fails to comply with the requirements of the Real Estate Development Marketing Act. It is the responsibility of the developer to disclose plainly all material facts, without misrepresentation. WSLEGAL\067807\00006\17492752v12
2 RIGHT OF RESCISSION Under section 21 of the Real Estate Development Marketing Act (the "Act"), the purchaser or lessee of a development unit may rescind (cancel) the contract of purchase and sale or contract to lease by serving written notice on the developer or the developer's brokerage, within 7 days after the later of the date the contract was entered into or the date the purchaser or lessee received a copy of this Disclosure Statement. The rescission notice may be served by delivering or sending by registered mail, a signed copy of the notice to: (a) the developer at the address shown in the disclosure statement received by the purchaser, (b) the developer at the address shown in the purchaser's purchase agreement, (c) the developer's brokerage, if any, at the address shown in the disclosure statement received by the purchaser, or (d) the developer's brokerage, if any, at the address shown in the purchaser's purchase agreement. The developer must promptly place purchasers' deposits with a brokerage, lawyer or notary public who must place the deposits in a trust account in a savings institution in British Columbia. If a purchaser rescinds their purchase agreement in accordance with the Act and regulations, the developer or the developer's trustee must promptly return the deposit to the purchaser. WSLEGAL\ 067807 \ 00006\ I 7492752v12
3 1. THE DEVELOPER DISCLOSURE STATEMENT KOOCANUSA VILLAGE -LAKEFRONT ESTATES TABLE OF CONTENTS 1,1 Jurisdiction, Date of Incorporation and Incorporation Number 1.2 Incorporated Specifically for Development/Other Assets 1.3 Registered and Records Office Address 1.4 Directors 1.5 Developer's Background 1.6 Conflicts of Interest 2. GENERAL DESCRIPTION 7 2.1 General Description of the Development 7 2.2 Permitted Use 8 2.3 Building Construction 8 2.4 Phasing 9 3. STRATA INFORMATION 10 3.1 Unit Entitlement 10 3.2 Voting Rights 10 3.3 Common Property and Facilities 10 3.4 Limited Common Property 10 3.5 Bylaws 11 3.6 Parking 11 3.7 Budget 11 3.8 Utilities and Services 12 3.9 Strata Management Contracts 14 3.10 Insurance 15 3.11 Rental Disclosure Statement 15 4. TITLE AND LEGAL MATTERS 15 4.1 Legal Description 15 4.2 Ownership 17 4.3 Existing Encumbrances and Legal Notations 17 4.4 Proposed Encumbrances 21 4.5 Outstanding or Contingent Litigation or Liabilities 21 4.6 Environmental Matters 21 5. CONSTRUCTION AND WARRANTIES 22 5.1 Construction Dates 22 5.2 Warranties 22 5 5 5 5 5 5 6 WSLEGAL\067807\00006\17492752v I2
4 6. APPROVALS AND FINANCES 22 6.1 Development Approval 22 6.2 Construction Financing 22 7. MISCELLANEOUS 23 7.1 Deposits 23 7.2 Purchase Agreement 23 7.3 Developer's Commitments 23 7.4 Other Material Facts 24 WSLEGAL\067807\00006\17492752v12
5 1. THE DEVELOPER KOOCANUSA VILLAGE LAKEFRONT ESTATES 1.1 Jurisdiction, Date of Incorporation and Incorporation Number The developer is 977230 Alberta Ltd. (the "Developer"). The Developer was incorporated under the laws of Alberta on March 4, 2002 under No. 209772300 and was registered in British Columbia as an extra provincial company on September 29, 2011 under No. A0084329. 1.2 Incorporated Specifically for Development/Other Assets The Developer was not incorporated specifically for the purpose of developing the bare land strata lots, defined as the "Remaining Strata Lots" in Section 4.1, which are the subject of this Disclosure Statement. The Developer does own assets in addition to the Remaining Strata Lots. 1.3 Registered and Records Office Address The Developer's registered and records office is: 1.4 Directors c/o Patterson Adams, 402 707 Fort Street P.O. Box 1231 Victoria, BC, V8W 2T6. The sole director of the Developer required by section 14 of the Real Estate Development Marketing Act (the "Act") and section 9 of the Regulations thereto to sign this Disclosure Statement is: (a) Dennis Hockett. 1.5 Developer's Background (a) Pursuant to an Order Absolute of Foreclosure made on April 21, 2016, the Developer foreclosed upon and acquired the fee-simple ownership interests of Marcer Ranching Ltd. (the "Previous Developer") in the Development, and now wishes to complete the sales of the Remaining Strata Lots (as defined and legally described in Section 4.1 hereof). The Developer and its officers and directors have not previously been involved in other real estate development. The Developer will retain, by contract, qualified development professionals with relevant real estate development expertise for the purposes of the offering and sale of the Remaining Strata Lots as described in this Disclosure Statement. WSLEGAL\067807\00006\17492752v12
6 (b) To the best of the Developer's knowledge, neither the Developer nor any principal holder of the Developer, nor any director or officer of the Developer or principal holder, within the ten years before the date of the Developer's declaration attached to the Disclosure Statement, has been subject to any penalties or sanctions imposed by a court or regulatory authority, relating to the sale, lease, promotion, or management of real estate or securities, or to lending money secured by a mortgage of land, or to arranging, administering or dealing in mortgages of land, or to theft or fraud. (c) To the best of the Developer's knowledge, neither the Developer nor any principal holder of the Developer, nor any director or officer of the Developer or principal holder, within the five years before the date of the Developer's declaration attached to the Disclosure Statement, was declared bankrupt or made a voluntary assignment in bankruptcy, made a proposal under any legislation relating to bankruptcy or insolvency or has been subject to or instituted any proceedings, arrangement, or compromise with creditors or had a receiver, receiver manager or trustee appointed to hold the assets of that person. (d) To the best of the Developer's knowledge, no director, officer or principal holder of the Developer, nor any director or officer of the principal holder, within the five years before the date of the Developer's declaration attached to this Disclosure Statement, has been a director, officer or principal holder of any other developer that, while that person was acting in that capacity, that other developer: (i) was subject to any penalties or sanctions imposed by a court or regulatory authority relating to the sale, lease, promotion, or management of real estate securities, or to lending money secured by a mortgage of land, or to arranging, administering or dealing in mortgages of land, or to theft or fraud, or (ii) was declared bankrupt or made a voluntary assignment in bankruptcy, made 1.6 Conflicts of Interest a proposal under any legislation relating to bankruptcy or insolvency or been subject to or instituted any proceedings, arrangement or compromise with creditors or had a receiver, receiver manager or trustee appointed to hold its assets. There are no existing or potential conflicts of interest among the Developer, manager, any directors, officers, and principal holders of the Developer and manager, directors or officers of the principal holders, any person providing goods or services to the Developer, manager or holders of the development units in connection with the Development which could reasonably be expected to affect the purchaser's purchase decision except: (a) the individual who is the owner of the Developer also owns an interest in the utility companies providing water and sewer to the Development; and (b) the Developer intends to develop other land adjacent to the Development. WSLEGAL\067807\00006\17492752v12
7 2. GENERAL DESCRIPTION 2.1 General Description of the Development "fhe Developer is the registered owner of the "Remaining Strata Lots" as defined and legally described in Section 4.1 of this Disclosure Statement. This Disclosure Statement relates only to the offering and sale by the Developer of the Remaining Strata Lots. The original strata development (the "Development") undertaken by the Previous Developer includes a total of 122 bare land strata lots (the "Strata Lots") created upon the filing of Strata Plan EPS771 which was registered in the Nelson Land Title Office July 11, 2012, A copy of filed Strata Plan EPS771 is attached as Exhibit "A" hereto (the "Strata Plan"), As background information, former 1,ot 2, District 1,ot 10348, Kootenay District, Plan 8226 (PID 013-359-517), previously having a civic address of 9794 Marcel: Road, Baynes bake, British Columbia was subdivided by the Previous Developer into Lots I to 4, inclusive (the "Parent Parcels") by Subdivision Plan EPP14443 which was registered on June 26, 2012, a copy of which is attached as Exhibit "B" hereto. One of the Parent Parcels, then known as Lot 1, District Lot 10348, Kootenay District, Plan EPP14443 (PID: 028-867-343) was further subdivided by the filing of the Strata Plan, creating the Strata Lots. The Development is bordered by British Columbia Crown land which is adjacent to Koocanusa Lake. The Remaining Strata Lots have civic addresses on Koocanusa I:ake Drive. as more particularly set out in Section 4.3 hereof. The Previous Developer registered reciprocal access easement agreements (the "Access Easements") for and against each of the Parent Parcels, prior to the registration of any strata plans, and such Access Easements are currently registered as follows: Benefit / Legal Notation Parent Parcel I* Easement No. CA2648356 Parent Parcel 2 Parent Parcel 3 Parent Parcel 4 Burden / Charge Common Property EPS771 (partially discharged so this is now only registered against. the CP EPS771) Parent Parcel 2 Easement No. CA2648357 Parent Parcel 1 Parent Parcel 3 Parent Parcel 4 *Parent Parcel I now: Strata hots 1 to 122 inclusive, EPS771, Parent Parcel 3** Easement No. CA2648358 Parent Parcel 1 Parent Parcel 2 Parent Parcel 4 Parent Parcel 2 Remainder Parent Parcel 3 And St, I to 64, EPS832 CP, EPS832 Parent Parcel 4 Easement No. CA2648359 Parent Parcel 1 Parent Parcel 2 Parent Parcel 3 Parent Parcel 4 *Parent Parcel 3 now: (Phase 1) Strata Lots I to 64 inclusive, Strata Plan BPS 832 and Remainder Parcel 3, The Developer currently owns a fee simple interest in Parent Parcel 2, Parent Parcel 4 and Remainder Parent Parcel 3 (which was created upon the subsequent filing of Phase 1 Strata Plan EPS832) and intends to register further strata plans or subdivision plans over such remaining Parent Parcels in the future. It is intended that such strata subdivisions will W51,1AiAl 1067807 \ODOM \ 17492752v12
8 result in a sharing of common property and common expenses relating to such strata property developments with the owners or the Strata Lots (but the implementation of that intention is not certain and may not occur). Each strata corporation created by any such future strata subdivisions may ultimately share common property and common expenses relating to same with owners of the Strata Lots, but the implementation of such processes is not certain and may not occur. Some of the Strata Lots in the Development have been sold by the Previous Developer and the Developer is only marketing the fee simple interests in the unsold Remaining Strata Lots (as defined in Section 4.1 below). The owner of a Remaining Strata Lot will be responsible for constructing a home in compliance with the building requirements for the Development as described in Section 2.3 of this Disclosure Statement. Each ONAilleF of a Remaining Strata Lot will own an equal share in the Common Property of the Strata Corporation for Strata Plan EPS771, including common facilities, if any, and other assets of the Strata Corporation. A community association, named Sweetwater Community Association (the "Community Association"), was created by the Previous Developer for the Development and manages the collective common property in the Development. A rent charge is registered in Favour of the Community Association against titles to the Strata Lots to secure payment of Community Association fees. A copy of the Community Association Rent Charge which was registered in the Land Title Office on July 11, 2012 under number CA2651891 with respect to, inter alia, the Development, is attached as Exhibit "C" hereto. 2.2 Permitted Use The Remaining Strata Lots are currently zoned by the Regional District of Fast Kootenay (the "RDEK") under Bylaw No. 2127, 2009 as amended by Bylaw No. 2226 (the "Zoning Bylaw's"). The toning Bylaws can be accessed and reviewed on the RDEK website - http://www.rdek.bc.ca/bylaws/ocp zoning_lancluse/zoningbvlaws/sm, etwaterzoning/ The Development is zoned R-1B (Single Family Residential - Medium Lot /one). The permitted use for the Development is limited to single family dwellings. I-Iome-based businesses, secondary suites and uses, buildings and structures accessory to a permitted use are also permitted, Any other use is prohibited. Lach Strata Lot may contain one dwelling unit. No Strata Hot may be used for any commercial or other purpose which is not accessory to residential purposes. The Zoning Bylaws set out, among other things, the minimum parcel sizes, maximum height, maximum parcel coverage and front, rear and side yard setback requirements. 2.3 Building Construction Construction of all improvements on each Remaining Strata Lot will be the sole responsibility of the owner of that Remaining Strata Lot. Each owner of a Remaining Strata Lot will be required to obtain a building permit from the RDEK. Before obtaining a building permit from the RDEK, an owner must comply with the Zoning Bylaws, the Statutory Building Scheme registered against title to the Strata Lots on July W51,1 GAL \ 067807 \ 00005 \ 17492752\712
1 1, 2012 under No. CA2652036, a copy of which is attached as Exhibit "D" hereto, as well as the Design Guidelines, a copy of which is attached as Exhibit "E" hereto. The Design Guidelines, as amended from time to time, provide a comprehensive process an owner must go through to obtain approval to build, including obtaining the consent of the Design. Review Coordinator ("DRC") as set out in the Design Guidelines. The Design Guidelines permit modular homes, provided that they comply with the relevant requirements under the Design Guidelines. Additionally, the Design Guidelines and the PSA (as defined in Section 7.2 of this Disclosure Statement) for the Remaining, Strata 1,ot (attached as Exhibit "L" to this Disclosure Statement) require that each owner pay a security deposit in the amount of $10,000.00 (the "Security Deposit") and if the Remaining Strata Lot owner fails to comply with the Design Guidelines or the Statutory Building Scheme, the Developer can use the Security Deposit to remedy any default or noncompliance. No interest will be paid to the Remaining Strata Lot owner on the Security Deposit. The Security Deposit may also be used by the Developer to clean up and repair common areas or other Strata Lots which may be damaged by any construction on the Remaining Strata Lot. Additionally, the Developer will deduct an administration charge from the Security Deposit for complete design guideline review. Such administration charges shall be $1,800.00. A t the time of the tiling of this Disclosure Statement, the Developer is of the view that the Statutory Building Scheme, as currently existing, should be amended to change the definitions of "Grantor", "Developer" and "Design Review Coordinator" (as defined therein) to reflect the name of the current Developer or designated agent of Developer. The Developer will endeavour to obtain any requisite approvals for such proposed amendment. Descriptions in this Disclosure Statement of requirements under the Statutory Building Scheme reflect the current requirements of the Statutory Building Scheme. Within three years of the owner acquiring title to the Remaining Strata Lot, each Remaining Strata Lot owner must complete, to "lock-up stage" (as that term is defined in the Design Guidelines), the construction of a home that complies with the Design Guidelines, the Statutory Building Scheme and the Zoning Bylaws. Each Remaining Strata Lot owner must also complete the exterior finishing of the dwelling and all landscaping, including all plantings, driveways, patios and other features as indicated on their approved plans. After those requirements have been completed, the Security Deposit, less administration lees and any amounts used to remedy any default, will be returned to the Remaining Strata Lot owner. Each Remaining Strata 1,ot owner is required to utilize the services of a builder which is first pre-approved in writing by the Developer for the construction of their home. Remaining Strata Lot owners may utilize contractors of their choice for landscaping, 2.4 Phasing The Development will not be a phased development. \\1St.1:',GAI.\0678070)006 7492752v12
10 3. STRATA INFORMATION 3.1 Unit Entitlement The unit entitlement of a Strata Lot is a figure representing the share of that Strata Lot's: (a) common property and common assets of the Development; and (b) contribution to the liabilities and expenses of maintaining and repairing the common property of the Owners, Strata Plan EPS771 (the "Strata Corporation"). In accordance with the Strata Property Act, the unit entitlement of each Strata Lot is expressed as a whole number that is equal for each of the Strata Lots. The unit entitlement for each of the Remaining Strata Lots is that which is shown on the Form V, Schedule of Unit Entitlement which was filed in the Land Title Office (with Strata Plan EPS771) on July 11, 2012 under No. CA1652037 and which is attached as Exhibit "F" hereto. 3.2 Voting Rights Each Strata Lot owner is allocated one (1) vote in the proceedings of the Strata Corporation. 3.3 Common Property and Facilities The Common Property of Strata Plan EPS771 is comprised of those areas not included within the boundaries of the Strata Lots and which are shown as "Common Property" or "CP" on the Strata Plan. Restrictions and privileges relating to use of the Common Property are contained in the By-Laws of the Strata Corporation (defined in Section 3.5 below, which By-Laws are attached as Exhibit "G" hereto). There are no common facilities in the Strata Plan. Common assets in the Development are: (a) common access roads; (b) pathways; and (c) green spaces. As set out in Section 2.1 above, Easement No. CA2648356 is registered against the Common Property of Strata Plan EPS771 in favour of the registered owners of the other Parent Parcels to effect the sharing of Common Property in different strata corporations. Likewise, Easement Nos. CA2648357, CA2648358 and CA2648359 are registered against Parent Parcels 2, 3 and 4 in favour of the owners of the Strata Lots so that the owners of the Strata Lots can utilize the common areas of other strata corporations which may be created on those Parent Parcels. 3.4 Limited Common Property At the time Strata Plan EPS771 was filed in the Land Title Office, there was no designation of Limited Common Property in favour of any owner of a Strata Lot and no amendment WSLEGAL 067807 \ 00006 \17492752v12
11 has been filed in the Land Title Office as of the date of this Disclosure Statement designating any Common Property as Limited Common Property on Strata Plan EPS771. 3.5 Bylaws The Strata Corporation's By-Laws (the "By-Laws") are those bylaws set out in the Form Y Owner Developers' Notice of Different Bylaws registered in the Land Title Office on July 21, 2012 under No. CA2652039, a copy of which is attached as Exhibit "G" hereto. Under the By-Laws, Strata Lot owners are required to keep their respective Strata Lot in good repair and to use the Common Property and the Strata Lot in a manner that will not negatively impact other owners or their rights to use their Strata Lots or the Common Property. The By-Laws provide that any dwelling cannot be used for any other purpose other than a private residence or vacation home for a single family. The By-Laws restrict parking of trailers, boats and recreational equipment except in areas not visible from roads or another Strata Lot. The By-Laws provide that domestic pets are permitted on a Strata Lot but the owner must ensure that such pets do not damage Common Property or interfere with other owners. Animals must be on leash when on Common Property and owners must clean up after them. The By-Laws require that Owners register their cats and dogs at their expense. If an Owner does not clean up after their pets they may be fined $200.00 for the first offence and $500.00 for each offence thereafter. 3.6 Parking Parking for the Remaining Strata Lots shall be located on each Remaining Strata Lot. The Zoning Bylaws dictates certain requirements for parking, one of which is that two off-street parking spaces will be provided for each Strata Lot. There will not be public or visitor parking located on the Common Property of the Development. 3.7 Budget The estimated annual operating costs and budget of the Strata Corporation for the 2016/2017 operating period, approved at an annual general meeting held on September 3, 2016, are as set forth in the "2016-2017 Budget" attached as Exhibit "H" hereto. The 2016-2017 Budget sets out how the operating costs will be allocated among the Strata Lot owners and also sets out the estimated monthly assessments for each of the Strata Lots in the Development during the operating year ending July 31, 2017. Strata Lot owners will be responsible for paying for utilities and any other services provided to their Strata Lots. Services provided to the Common Property of the Strata Corporation will be paid through strata fees. WSLEGAL\067807\00006\17492752v12
12 3.8 Utilities and Services 3.8.1 Water The Remaining Strata Lots have been connected to their respective lot lines to a private water system owned and operated by 0938534 BC Ltd. (the "Water Utility"). The Water Utility has obtained a Certificate of Public Convenience and Necessity which was issued on June 7, 2012 under Certificate No. 1442. Statutory Rights of Way have been granted in favour of the Water Utility and are registered against the Common Property of Strata Plan EPS771 as well as certain portions (defined by plan area) of Strata Lots 1 through 74 inclusive, Strata Lot 77 and Strata Lot 83, as follows: Registration No, Plan Number Charged Strata Lots CA2652018 EPP20411 Strata Lots 1 to 16 CA2652021 EPP21695 Strata Lots 17 to 34 CA2652024 EPP21696 Strata Lots 35 to 55 CA2652027 EPP21697 Strata Lots 56 to 74 CA2652030 EPP20412 Strata Lots 77 and 83 CA2652032 Blanket Common Property, EPS771 Copies of the Water Utility SRW Agreements can be obtained from the Land Title Office. Waterlines connecting a Remaining Strata Lot to the water system shall be, to the extent the lines are located on the Remaining Strata Lot, the responsibility of the Remaining Strata Lot owner and the costs associated with connecting the dwelling on the Remaining Strata Lot to the lot line connection will be borne by the Remaining Strata Lot owner. Prior to connection, there will be a standby fee and a connection fee charged by the Water Utility. The Developer confirms that as of the date of this Disclosure Statement, the power source for the pumps connecting to the supply wells for the water supply is temporarily being provided by a gas-powered generator, managed by the Water Utility. The Developer commits to completing or causing to be completed by the Water Utility, the connection of the well pumps to a permanent power supply by no later than December 31st, 2017. 3.8.2 Electricity Single-phase domestic power is available to each Remaining Strata Lot at the lot line. Costs of connecting the service to the panel on any Strata Lot will be at the cost of the Remaining Strata Lot owner. Installation of electrical service must be coordinated with the local service provider, B.C. Hydro. Typical service size is designed for 200 amps, but additional supply is available upon request. WSLEGAL\067807\00006\17492752v12
13 3.8.3 Sewerage The Remaining Strata Lots are connected at the lot line to a private sewer system owned and operated by 0938522 BC Ltd. (the "Sewer Utility"). The Sewer Utility has obtained a Municipal Wastewater Regulation (MWR) Registration No. 105466. Servicing of the Strata Lots with sewer has been completed. Unless and until the treatment plant is fully operational, the Sewer Utility reserves the right to continue to pump effluent out of the cisterns and to truck effluent/sewer discharge from receptacles to off-site locations rather than treating it. Sewer lines, along with works ancillary thereto, necessary for the servicing of the Development, are located on the Common Property as well as on certain portions of some of the Strata Lots. Statutory Rights of Way have been granted in favour of the Sewer Utility and are registered against the Common Property of Strata Plan EPS771 as well as on certain portions (as to plan areas) of Strata Lots 1 through 74 inclusive, as follows: Registration No. Plan Number Charged Strata Lots CA2652019 EPP20411 Strata Lots 1 to 16 CA2652022 EPP21695 Strata Lots 17 to 34 CA2652025 EPP21696 Strata Lots 35 to 55 CA2652028 EPP21697 Strata Lots 56 to 74 CA2652031 Blanket Common Property, EPS771 Copies of the Statutory Rights of Way can be obtained from the Land Title Office. Sewer lines connecting a Remaining Strata Lot to the sewer system shall be, to the extent the lines are located on the Remaining Strata Lot, the responsibility of the Remaining Strata Lot owner and any costs associated with connecting any dwelling on the Remaining Strata Lot to lot line connection will be borne by the Remaining Strata Lot owner. Prior to connection, a standby fee charged and a connection fee will be charged by the Sewer Utility. 3.8.4 Natural Gas There is currently no natural gas service provided in the Development. The Statutory Rights of Way in favour of the Sewer Utility also allow it to install propane distribution lines in the Right of Way area to service the Development with propane in future. The Developer or the Sewer Utility may create a propane tank farm on the Common Property, to service the Strata Lots. If created, such propane tank farm shall distribute the propane throughout the Development across the Common Property of Strata Plan EPS771 as well as in the Right of Way areas defined on Strata Lots 1-74. Propane tanks greater than 100 lbs (48.5"x15") in size are not permitted on the Strata Lots. All propane tanks must be screened from view. WSLEGAL\067807\00006\17492752v12
14 3.8.5 Fire protection The Development is outside of established fire protection boundaries for local fire departments. If fire protection districts were expanded, fire protection could be provided by volunteer fire departments in the nearby communities of Baynes Lake or Jaffray. Baynes Lake and Jaffray are located approximately 20 kilometers and 34 kilometers respectively from the Development. 3.8.6 Telephone 3.8.7 Access There is no telephone service provided in the Development. The Statutory Rights of Way in favour of the Sewer Utility do allow telecommunications cabling to be placed within the Right of Way areas. All costs associated with the provision of telephone service to the Remaining Strata Lots are costs of the Remaining Strata Lot owners. Legal access to the Development is provided by a publicly-dedicated road known as McMorran Drive, a portion of which is constructed across lands owned by the Province of British Columbia, which the Developer intends to acquire for dedication as a public road. The Developer has a non-exclusive license of occupation over that portion of Crown land under Crown Lands License No, 404451 for a term of 10 years commencing December 1, 2010. Prior to the expiry of the tenure granted thereunder, the Developer intends to complete the acquisition of the lands required to dedicate the same as roadway. However, if the Developer is unable to complete such acquisition of such lands, the physical access road will be relocated, at the cost of the Developer, to the Statutory Right of Way registered on June 26, 2016 under No. CA2620467 in favour of Her Majesty the Crown in Right of British Columbia, as represented by the Minister of Transportation and Infrastructure against title to Parent Parcel 2, which is located immediately adjacent to that portion of road which is identified under License of Occupation No. 40445, and will provide legal access over that area shown on Plan EPP14444 for ingress and egress to, inter alia, the Development. Within the Development, access to the Strata Lots is provided by a road located on the Common Property of the Strata Corporation. The Developer is responsible for the cost of building the access road as well as the internal road on the Common Property of the Strata Corporation to a gravel road standard. Each Remaining Strata Lot owner will be responsible for the development costs of driveways on each respective Remaining Strata Lot. 3.9 Strata Management Contracts As of June 1, 2016, the Strata Corporation has entered into a management agreement with a professional property management company, Snow Valley Strata Management (with whom the Developer deals at arm's length and which is not related to the Developer or its directors) to provide property management services to the Strata Corporation. A copy of the management agreement is attached hereto as Exhibit "I". WS1,EGAL\067807\00006\17492752v12
15 3.10 Insurance The Strata Corporation has obtained the following insurance coverage with respect the Strata Corporation: (a) General liability insurance from Non-Marine Underwriters at Lloyd's under contract No. B0572NA15BN03 in the amount of Five Million Dollars ($5,000,000.00); (b) Director & officers liability insurance from Non-Marine Underwriters at Lloyd's under contract No. B0572NA15BN03 in the amount of Five Million Dollars ($5,000,000.00); (c) Volunteer accident insurance from Non-Marine Underwriters at Lloyd's under contract No. B113515CPBA1065 in the amount of One Hundred Thousand Dollars ($100,000.00); (d) Comprehensive crime insurance from Non-Marine Underwriters at Lloyd's under contract No. B0572NA15BN03 in the amount of Five Thousand Dollars ($5,000.00); and (e) Legal expense insurance from Non-Marine Underwriters at Lloyd's under contract No. B113516CPBA1359 in the amount of Two Hundred Fifty Thousand Dollars ($250,000.00), Fifty Thousand Dollars ($50,000.00) per occurrence. Purchasers of Remaining Strata Lots must obtain their own construction and all-risk property insurance coverage with respect to any buildings on their Remaining Strata Lots and contents thereof and liability insurance for their Remaining Strata Lots, as well as any other insurance such owners deem appropriate. 3.11 Rental Disclosure Statement Section 139 of the Strata Property Act of the Province of British Columbia provides that a developer must disclose to any purchaser the developer's intention to rent or lease strata lots. It was the intention of the Previous Developer to sell all of the bare land strata lots in the Development to individuals for their own use. However, the Previous Developer reserved the right to rent or lease Strata Lots which are not sold. A copy of the Rental Disclosure Statement filed by the Previous Developer with the Superintendent of Real Estate is attached hereto as Exhibit "J". 4. TITLE AND LEGAL MATTERS 4.1 Legal Description The legal descriptions for those Strata Lots in Strata Plan EPS771 owned by the Developer and in respect of which this Disclosure Statement relates (the "Remaining Strata Lots") are as follows: WSLEGAL\067807\00006\17492752v12
16 PID Legal Descriptions Civic Addresses 028-880-226 Strata Lot 7, District Lot 10348, Kootenay District, Strata Plan EPS771 1706 Drive Koocanusa 028-880-251 Strata Lot 10, District Lot 10348, 1700 Koocanusa Kootenay District, Strata Plan EPS771 Drive 028-880-331 Strata Lot 18, District Lot 10348, 1684 Koocanusa Kootenay District, Strata Plan EPS771 Drive 028-880-340 Strata Lot 19, District Lot 10348, 1682 Koocanusa Kootenay District, Strata Plan EPS771 Drive 028-880-421 Strata Lot 27, District Lot 10348, 1664 Koocanusa Kootenay District, Strata Plan EPS771 Drive 028-880-498 Strata Lot 34, District Lot 10348, 1650 Koocanusa Kootenay District, Strata Plan EPS771 Drive 028-880-757 Strata Lot 60, District Lot 10348, 1590 Koocanusa Kootenay District, Strata Plan EPS771 Drive 028-880-901 Strata Lot 75, District Lot 10348, 1585 Koocanusa Kootenay District, Strata Plan EPS771 Drive 028-880-919 Strata Lot 76, District Lot 10348, 1587 Koocanusa Kootenay District, Strata Plan EPS771 Drive 028-880-943 Strata Lot 79, District Lot 10348, 1595 Koocanusa Kootenay District, Strata Plan EPS771 Drive 028-880-951 Strata Lot 80, District Lot 10348, 1597 Koocanusa Kootenay District, Strata Plan EPS771 Drive 028-880-978 Strata Lot 82, District Lot 10348, 1607 Koocanusa Kootenay District, Strata Plan EPS771 Drive 028-881-001 Strata Lot 85, District Lot 10348, 1615 Koocanusa Kootenay District, Strata Plan EPS771 Drive 028-881-028 Strata Lot 87, District Lot 10348, 1623 Koocanusa Kootenay District, Strata Plan EPS771 Drive 028-881-036 Strata Lot 88, District Lot 10348, 1625 Koocanusa Kootenay District, Strata Plan EPS771 Drive 028-881-061 Strata Lot 91, District Lot 10348, 1633 Koocanusa Kootenay District, Strata Plan EPS771 Drive 028-881-109 Strata Lot 95, District Lot 10348, 1645 Koocanusa Kootenay District, Strata Plan EPS771 Drive 028-881-117 Strata Lot 96, District Lot 10348, 1651 Koocanusa Kootenay District, Strata Plan EPS771 Drive 028-881-133 Strata Lot 98, District Lot 10348, 1655 Koocanusa Kootenay District, Strata Plan EPS771 Drive 028-881-150 Strata Lot 100, District Lot 10348, 1663 Koocanusa Kootenay District, Strata Plan EPS771 Drive 028-881-192 Strata Lot 104, District Lot 10348, 1673 Koocanusa Kootenay District, Strata Plan EPS771 Drive 028-881-206 Strata Lot 105, District Lot 10348, 1675 Koocanusa Kootenay District, Strata Plan EPS771 Drive Lake Lake Lake Lake Lake Lake Lake Lake Lake Lake Lake Lake Lake Lake Lake Lake Lake Lake Lake Lake Lake Lake WSLEGAL\067807\00006\17492752v12
17 PID Legal Descriptions Civic Addresses 028-881-214 Strata Lot 106, District Lot 10348, Kootenay District, Strata Plan EPS771 028-881-257 Strata Lot 110, District Lot 10348, Kootenay District, Strata Plan EPS771 028-881-265 Strata Lot 111, District Lot 10348, Kootenay District, Strata Plan EPS771 028-881-281 Strata Lot 113, District Lot 10348, Kootenay District, Strata Plan EPS771 028-881-290 Strata Lot 114, District Lot 10348, Kootenay District, Strata Plan EPS771 028-881-311 Strata Lot 116, District Lot 10348, Kootenay District, Strata Plan EPS771 (All) Together with an Interest in the Common Property in Proportion to the Unit Entitlement of the Strata Lot as Shown on Form V. 1677 Drive 1691 Drive 1693 Drive 1699 Drive 1701 Drive 1707 Drive Koocanusa Lake Koocanusa Lake Koocanusa Lake Koocanusa Lake Koocanusa Lake Koocanusa Lake 4.2 Ownership The Developer is the registered owner of the Remaining Strata Lots. 4.3 Existing Encumbrances and Legal Notations As of the date of this Disclosure Statement (based on Land Title Office searches for each of the Remaining Strata Lots and the Common Property of Strata Plan EPS771, dated June 8, 2017), the following legal notations and liens, charges and interests are registered against, inter alia, the Remaining Strata Lots and/or the Common Property of Strata Plan EPS771 (complete copies of which are available to the public at the Land Title Office, unless otherwise indicated as being attached as an Exhibit hereto), and are briefly described as follows: (a) Legal Notations: (i) Hereto is Annexed Easement CA2648357 over Lot 2 Plan EPP14443 (for the benefit of, inter alia, the Remaining Strata Lots and the Common Property of Strata Plan EPS771) for the purpose of access over the common property of Lot 2 Plan EPP14443; (ii) Hereto is Annexed Easement CA2648358 over Lot 3 Plan EPP14443 (for the benefit of, inter alia, the Remaining Strata Lots and the Common Property of Strata Plan EPS771) for the purpose of access over the common property of Lot 3 Plan EPP14443; (iii) Hereto is Annexed Easement CA2648359 over Lot 4 Plan EPP14443 (for the benefit of, inter alia, the Remaining Strata Lots and the Common WSLEGAL\067807\00006\17492752v12
18 Property of Strata Plan EPS771) for the purpose of access over the common property of Lot 4 Plan EPP14443; (iv) Personal Property Security Act Notice, See CA2863960 providing notice that Mandate National Mortgage Corporation, York Ventures Ltd., Clarion Property Corporation, Rekley Holdings Ltd., Wayne Legear, Diane Rauch, and Winsome Rauch claim a security interest in all present and after acquired personal property, assets, rights and undertaking of Marcer Ranching Ltd. situate on, arising from, relating to or in connection with, inter alia, Remaining Strata Lots 7, 10, 27, 34, 76, 79, 80, 82, 85, 88, 91, 98, 100, 104, 105, 106, 110, 111, 113, 114 and 116, which notice expires on November 8, 2017; (b) Charges, Liens and Interests (i) Rent Charge registered under number CA2651889 in favour of Water Utility (charging, inter alia, the Remaining Strata Lots and the Common Property of Strata Plan EPS771) to secure the annual water availability of service charge; (ii) Rent Charge registered under number CA2651890 in favour of Sewer Utility (charging, inter alia, the Remaining Strata Lots and the Common Property of Strata Plan EPS771) to secure the annual sewer availability of service charge; (iii) Rent Charge registered under number CA2651891 in favour of Sweetwater Community Association (charging, inter alia, the Remaining Strata Lots and the Common Property of Strata Plan EPS771) to secure the annual service charge for the maintenance of the Sweetwater Community Association's administration, facilities and the provision of its services; (iv) Section 219 Covenant registered under number CA2652015 in favour of Her Majesty the Queen in Right of the Province of British Columbia, as represented by the Minister of Transportation, and the Regional District of East Kootenay, (charging, inter alia, Remaining Strata Lots 7, 10, 18 and 19) restricting and providing that no improvements of any kind, and no disturbance of any kind (including deposit of soil, fill, material or the cutting or disturbing of any vegetation) shall take place within the Covenant Area shown on Plan EPP20410. A copy of this Covenant including Plan EPP20410 is attached as Exhibit "K" hereto; (v) Section 219 Covenant registered under number CA2652016 in favour of Water Utility (charging, inter alia, the Remaining Strata Lots) restricting water usage on the Strata Lots, and providing in particular, no more than 325 imperial gallons may be used per Strata Lot per day for irrigation of water supplied by the Water Utility; WSLEGAL\067807\00006\17492752v12
19 (vi) V11 (viii) (ix) (x) (xi) (xii) Statutory Right of Way registered under number CA2652018 in favour of Water Utility (charging, inter olio, Remaining Strata Lots 7 and 10), for the purpose of constructing, installing, maintaining and operating a water system and ancillary works, within the right of way area shown on Plan EPP204 11, with ancillary rights of access to the right of way area; Statutory Right of Way registered under number CA2652019 in favour of Sewer Utility (charging, inter alio, Remaining Strata Lots 7 and 10), for the purpose of constructing, installing, maintaining and operating a sewerage collection system and ancillary works, as well as any things and components necessary for power distribution, propane distribution, telecommunications and television cable service distribution, within the right of way area shown on Plan EPP20144, with ancillary rights of access to the right of way area; Statutory Right of Way registered under number CA2652021 in favour of Water Utility (charging, inter olio, Remaining Strata Lots 18, 19, 27 and 34), for the purpose of constructing, installing, maintaining and operating a water system and ancillary works, within the right of way area shown on Plan EPP21695, with ancillary rights of access to the right of way area; Statutory Right of Way registered under number CA2652022 in favour of Sewer Utility (charging, infer alio, Remaining Strata Lots 18, 19, 27 and 34), for the purpose of constructing, installing, maintaining and operating a sewerage collection system and ancillary works, as well as any things and components necessary for power distribution, propane distribution, telecommunications and television cable service distribution, within the right of way area shown on Plan :ETP21695, with ancillary rights of access to the right of way area; Statutory Right of Way registered under number CA2652027 in favour of Water Utility (charging, infer (ilia Remaining Strata Lot 60), for the purpose of constructing, installing, maintaining and operating a water system and ancillary works, within the right of way area shown on Plan EPP21697, with ancillary rights of access to the right of way area; Statutory Right of Way registered under number CA2652028 in favour of Sewer Utility (charging, inlet' dila, Remaining Strata Lot 60), for the purpose of constructing, installing, maintaining and operating a sewerage collection system and ancillary works, as well as any things and components necessary for power distribution, propane distribution, telecommunications and television cable service distribution, within the right of way area shown on Plan EPP21697, with ancillary rights of access to the right of way area; Statutory Right of Way registered under number CA2652031 in favour of Sewer Utility (blanket charge over the Common Property of Strata Plan EPS771), for the purpose of constructing, installing, maintaining and operating a sewerage collection system and ancillary works, as well as any WSIEGAL\ 067807\00006\17492752v L 2
20 things and components necessary for power distribution, propane distribution, telecommunications and television cable service distribution; (xiii) Statutory Right of Way registered under number CA2652032 in favour of Water Utility (blanket charge over the Common Property of Strata Plan EPS771), for the purpose of constructing, installing, maintaining and operating a water system and ancillary works; (xiv) Statutory Building Scheme registered under number CA2652036, charging the Strata Lots, and restricting and providing for the use of the Strata Lots to ensure that each Strata Lot within the Development is developed, maintained and preserved for high quality residential use and enjoyment. The Statutory Building Scheme includes inter alio certain land use rules and regulations, site planning guidelines, architectural guidelines, and landscape guidelines. A copy of:the Statutory Building Scheme is attached as Exhibit "D" hereto; (xv) Easement registered under number CA2648356 charging the Common Property of Strata Plan EPS771, for the benefit of the registered owners of Parent Parcel 2, Remainder Parent Parcel 3, Strata Plan EPS832, and Parent Parcel 4 for the purpose o faccess over the system of pathways and roads on the Common Property of Strata Plan EPS771; (xvi) Mortgage and Assignment of Rents registered under numbers CA3182197 and CA3182198 respectively, (charging Remaining Strata Lots 7, 10, 27, 34, 76, 79, 80, 82, 85, 88, 91, 98, 100, 104, 105, 106, 110, 111, 113, 114 and 1 16), in favour of York Ventures Ltd. (as to an undivided 402222/1810000 interest), Clarion Property Corporation (as to an undivided 201111/1810000 interest), Rekley Holdings Ltd. (as to an undivided 754167/1810000 interest), Lisa Legear (as to an undivided 100555/1810000 interest), and Gill. Properties Ltd. (as to an undivided 351945/1810000 interest) (collectively, the "Lenders") to secure a borrowing principal amount of $1,810,000.00; and (xvii) Statutory Right of Way registered under number CA3465033 in favour of British Columbia -11ydro (charging Remaining Strata Lots 7, 10, 18, 19, 27, 34 and 60) for the purpose of constructing, installing, maintaining and operating certain works necessary for the purpose of power distribution and telecommunications distribution, within the right of way area shown on Plan EPP20411, FPP21695, PP21696, and EPP21697, with ancillary rights of access to the right of way area; (xviii) Statutory Right of Way registered under number CA3461448 in favour of British Columbia Hydro (blanket charge over the Common Property of Strata Plan EPS771 for the purpose of constructing, installing, maintaining and operating certain works necessary for the purpose of power distribution and telecommunications distribution; and WSITGAD.067807 \ 00006 \ 7492752v 12
21 (xix) Statutory Right of Way registered under number CA3461449 in favour of TEl Communications Inc. (blanket charge over the Common Property of Strata Plan EPS771 for the purpose of constructing, installing, maintaining and operating certain works necessary for the purpose of telecommunications and data transmission. The Lenders have agreed to discharge the encumbrances listed in paragraph 4.3(b)(xv) above prior to the closing of conveyances of Remaining Strata Lots to buyers. 4.4 Proposed Encumbrances The following are encumbrances that the Developer may register against title to the Development: (a) Any and all encumbrances required by any municipality, regional or provincial government body or by any utility provider. 4.5 Outstanding or Contingent Litigation or Liabilities Outstanding or contingent litigation or liabilities known to the Developer that might affect the Strata Corporation or any Remaining Strata Lot owner can be described as follows: (a) (b) (c) (d) Existing -financial charges which include mortgages and which, if not already cleared prior to closing, will be undertaken to be discharged at closing and in that case, sale proceeds will be used by the Developer if necessary; Upgrading requirements for lull activation of the water system to be completed by the Developer pursuant to Section 3.8.1 of this Disclosure Statement; Upgrading or provision of phase 3 power required for the treatment plant for a fully operational sewer system to be completed by the Developer pursuant to Section 3.8.1 of this Disclosure Statement; and Maintaining the license of occupation number 40445 in good standing or, alternatively, constructing permanent legal access within the area identified in Plan EPP14444 as a replacement for the portion of roadway located within license of occupation number 40445 by the Developer pursuant to Section 3.8.7 of this Disclosure Statement. 4.6 Environmental Matters As the Development is located near a dammed water body, the Design Guidelines and Zoning Bylaws address certain building requirements in respect of flooding concerns that should be reviewed by purchasers of the Remaining Strata Lots closely. The level of Lake Koocanusa is controlled by the Libby Dam located outside of Libby, Montana, USA. There are floodplain setbacks in place which are 10.0 in from the natural boundary of Lake Koocanusa and 15.0 en from the ordinary high water mark of any other watercourse. The Zoning Bylaws define numerous terms such as natural boundary, ordinary high water mark WSLEGAL \ 067807 \ 00006 \ 17,I92752v12
22 and watercourse. The Zoning Bylaws should be reviewed closely to ascertain the particular requirements of any Remaining Strata Lot. Basements are prohibited within the Development. Purchasers should note that because Lake Koocanusa is a dammed water body, wide variations in the level of the lake may be experienced. Remaining Strata Lots 7, 10, 18 and 19 are subject to a Geotechnical Covenant registered under number CA2652015 in favour of Her Majesty the Queen in Right of the Province of British Columbia, as represented by the Minister of Transportation, and the Regional District of East Kootenay, a copy of which is attached as Exhibit "K" hereto. The Geotechnical Covenant provides that no improvements of any kind, and no disturbance of any kind (including deposit of soil, fill, material or the cutting or disturbing of any vegetation) shall take place within the Covenant Area shown on Plan EPP20410, a copy of which is also attached with Exhibit "K" hereto. 5. CONSTRUCTION AND WARRANTIES 5.1 Construction Dates The Remaining Strata Lots are now fully serviced and no additional construction of services or utilities is required except that: (a) any additional costs associated with the provision of 3 phase power for the requirements of the water supply well pumps and the lift stations located in the Development are the responsibility of the Developer and shall be completed as required by relevant approving authorities, at no cost to the Remaining Strata Lot owners; and (b) any additional costs for upgrading of the access roads within the Development will be the responsibility of the Strata Corporation. 5.2 Warranties There are no construction or other warranties with respect to the Remaining Strata Lots. 6. APPROVALS AND FINANCES 6.1 Development Approval All development approvals relating to the development, construction and servicing of the Development were obtained by the Previous Developer and no further development approvals are required in connection with the Remaining Strata Lots. 6.2 Construction Financing The Remaining Strata Lots are now fully serviced and no construction financing is required by the Developer. WSLEGAL\067807\00006\17492752v12
23 7. MISCELLANEOUS 7.1 Deposits All deposits payable by purchasers of Remaining Strata Lots under any PSA (as defined in Section 7.2 of this Disclosure Statement) will be held by the Developer's lawyer, Gordon Leffler, Barrister and Solicitor, of 1361 7t11 Avenue, Fernie, British Columbia VOB 1M0, in trust and in the manner required by the Act. 7.2 Purchase Agreement (a) A copy of the Developer's preferred form of purchase agreement with respect to the sale and purchase of a Remaining Strata Lot is attached as Exhibit "L" to this Disclosure Statement (the "PSA"). If a purchaser fails to complete the purchase of a Remaining Strata Lot as agreed under a relevant PSA, the Developer's remedies will include rights to require any deposit held in trust to be forfeited to the Developer, as well as other remedies set out in the PSA with respect to a purchaser's breach of the PSA. (b) The provisions in the purchase agreement for assigning the purchase agreement to a new purchaser are set out in Paragraphs 19 and 20 of Schedule "A" to the PSA. Paragraph 19 provides that no assignment (to a new purchaser) of a purchaser's rights under the PSA to purchase a Remaining Strata Lot will be permitted without the prior written consent of the Developer and paragraph 20 requires the payment to the Developer of the sum of $5,000.00 as consideration for the consent of the Developer to any such assignment. (c) Paragraph 2 of Schedule "A" to the PSA provides that no interest will be paid or payable to the Purchaser on any deposit paid under the PSA. 7.3 Developer's Commitments Some or all of the following Developer's commitments may be completed after completion of the sale of Remaining Strata Lots: (a) The Developer will endeavour to cause the water and sewer utility companies to complete any upgrades to the water and sewer systems servicing the Remaining Strata Lots if so required by governmental authorities. (The Water Utility has posted security with the Comptroller of Water Rights with regard to the completion of the water system and the Sewer Utility has posted security with Ministry of the Environment regarding any deficiencies in the sewer system); and (b) The Developer will endeavour to complete the acquisition and dedication of that portion of McMorran Drive constructed across lands owned by the Province of British Columbia, as described in Section 3.8.7 of this Disclosure Statement. If the Developer fails or is unable to complete such commitments: WSLEGAL\067807\00006\17492752v12
24 (c) the Strata Corporation may request the government agencies described in Section 7.3 (a) above to utilize available security to complete the water system or to correct deficiencies in the sewer service, or alternatively, the Strata Corporation may elect to issue special assessments to pay for any such works and services. (d) if the Developer is unable to complete the acquisition of the required Crown lands as described in Section 7.3 (b) above, the license of occupation described in Section 3.8.7 could expire or be terminated and thereafter, the existing access roadway could become unavailable for use by Strata Lot owners to access their respective Strata Lots. Additionally, the license of occupation could be terminated if the Developer fails to keep it in good standing. In either instance, the Developer would then, at its cost, construct a roadway within the area identified in Plan EPP14444 as described in Section 3.8.7. 7.4 Other Material Facts The Developer is not aware of any other material facts relating to the offering and sale of the Remaining Strata Lots not otherwise disclosed herein. WSLEGAL\067807\00006\17492752v12
DLLIN/1 1-4'. 1,1:0( Section 22 of the Real Estate Development liktihling,aet provides that every purchaser who is entitled to receive this Disclosure Statement is deemed to have relied on any false or misleading statement of a material fact contained in this Disclosure Statement, if any, and a ny omission to state a material fact. The developer, its directors and any person who has signed or authorized the filing, of this Disclosure Statement are liable to compensate the purchaser for any misrepresentation, subject to any defenses available under section 22 of the Act. DECi Ak. '1.1()N T he foregoing statements disclose, without aatisrepresentation, all material facts relating to the Remaining Strata Lots. comprising portions of the Development referred to above, 2S required by, the Real Estate Development illarketin,l,,lci of British Columbia, as of the dav of, 2017. 977230 ALBERTA LT.1.. by its authorized signatory: Per: A / - L Dennis I iockett Per: Dennis I locket( D irector 977230 ALBERTA I \VS11,( (}67;,)"," ( IHOHrY' 7492152vI2
SOLICITOR'S CERTIFICATE I N THE MATTER OF the Real Elate Development Alarketing Act and the Disclosure Statement of 977230 ALBERTA LTD. For property legally described as: P1D Leal Descriptions 028-880-226 Strata Lot 7, District I,ot 10348, Kootenay District, Strata Plan EPS771 028-880-251 Strata Lot 10, District Lot 10348, Kootenay District, Strata Plan EPS771 028-880-331 Strata Lot 18, District I,ot 10348, Kootenay District, Strata Plan EPS771 028-880-340 Strata Lot 19, District I,ot 10348, Kootenay District, Strata Plan EPS771 028-880-421 Strata Lot 27, District I,ot 10348, Kootenay District, Strata Plan EPS771 028-880-498 Strata Lot 34, District L,ot 10348, Kootenay District, Strata Plan EPS771 028-880-757 Strata Lot 60, District Lot 10348, Kootenay District, Strata Plan EPS771 028-880-901 Strata Lot 75. District Lot 10348, Kootenay District, Strata Plan EPS771 028-880-919 Strata Lot 76. District Lot 10348, Kootenay District, Strata Plan LPS771 028-880-943 Strata Lot 79, District Lot 10348, Kootenay District, Strata Plan EPS771 028-880-951 Strata Lot 80, District Lot 10348, Kootenay District, Strata Plan EPS771 028-880-978 Strata Lot 82, District Lot 10348, Kootenay District, Strata Plan EP5771 028-881-00 I Strata Lot 85, District Lot 10348, Kootenay District, Strata Plan EPS771 028-881-028 Strata Lot 87, District 1,ot 10348,!Kootenay District, Strata Plan EPS771 028-881-036 Strata Lot 88, District I,ot 10348, Kootenay District, Strata Plan EPS771 028-881-061 Strata Lot 91, District Lot 10348, Kootenay District, Strata Plan FP5771 028-881-109 Strata Lot 95, District Lot 10348. Kootenay District, Strata Plan FP5771 028-881-1 17 Strata Lot 96, District Lot 10348, Kootenay District, Strata Plan LPS771 028-881-133 Strata Lot 98, District Lot 10348, Kootenay District, Strata Plan EPS77 l 028-881-150 Strata Lot 100, District 1,ot 10348, Kootenay District, Strata Plan EPS771 028-881-192 Strata 1.ot 104, District lot 10348, Kootenay District, Strata Plan LPS771 028-881-206 Strata Lot 105, District Lot 10348, Kootenay District. Strata Pla~ EPS771 028-881-214 Strata Lot 106, District I,ot 10348, Kootenay District, Strata Plan EP5771 028-881-257 Strata Lot 110, District Lot 10348, Kootenay District, Strata Plan EPS771 028-881-265 Strata Lot I ll. District Lot 10348, Kootenay District, Strata Plan EPS771 028-881-281 Strata Lot 1 13, District Lot 10348, Kootenay District, Strata Plan EPS771 028-881-290 Strata Lot 1 14, District Lot 10348, Kootenay District, Strata Plan EPS771 028-881-3 I I Strata Lot 116, District Lot 10348, Kootenay District, Strata Plan EPS771 I, CHRISTINE S. WILSON, Solicitor, a member of the Law Society of British Columbia, having read over the above Disclosure Statement dated June 8, 2017, made any required investigations in public office, and reviewed same with the Developer therein named, hereby certify that the contents of sections 4. 1, 4.2 and 4.3 of the Disclosure Statement are correct. DATED at Vancouver, in the Province of'british Columbia this 8(1) day of June, 2017. CHRISTINE S. WILSON \A'S] (i,\i:\067807 \ 00006 \ 18I00679v I
Status: Filed Plan #: EPS771 App #: CA2651889 Ctrl #: 134-004-8992 RCVD: 2012-07-11 RQST: 2017-01-31 13.00.57 Page 1 of 4
Status: Filed Plan #: EPS771 App #: CA2651889 Ctrl #: 134-004-8992 RCVD: 2012-07-11 RQST: 2017-01-31 13.00.57 Page 2 of 4
Status: Filed Plan #: EPS771 App #: CA2651889 Ctrl #: 134-004-8992 RCVD: 2012-07-11 RQST: 2017-01-31 13.00.57 Page 3 of 4
Status: Filed Plan #: EPS771 App #: CA2651889 Ctrl #: 134-004-8992 RCVD: 2012-07-11 RQST: 2017-01-31 13.00.57 Page 4 of 4
Status: Filed Plan #: EPP14443 App #: CA2620460 Ctrl #: 133-970-3699 RCVD: 2012-06-26 RQST: 2015-03-23 10.54.03 Page 1 of 1
Status: Registered Doc #: CA2651891 RCVD: 2012-07-11 RQST: 2015-05-11 10.46.04 Page 1 of 8
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Status: Registered Doc #: CA2652036 RCVD: 2012-07-11 RQST: 2017-02-08 17.14.32 Page 1 of 18
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Status: Filed Doc #: CA2652037 RCVD: 2012-07-11 RQST: 2017-02-13 11.30.54 Page 1 of 10
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Status: Filed Doc #: CA2652039 RCVD: 2012-07-11 RQST: 2017-02-08 17.19.29 Page 1 of 21
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The Owners, Strata Plan EPS771 BUDGET Sweetwater Lake Resort - "Lakefront Estates" 2016-2017 Budget Year-end July 31, 2017 Proposed Budget Actual to Budget 2014-2015 30-Jun-16 2016-2017 INCOME Maintenance fees 24,400.00 24,400.00 24,400.00 Interest Revenue - - - Operating Surplus 5,000.00 Misc. revenue (fines, etc) - 10.14 - TOTAL INCOME 24,400.00 24,410.14 29,400.00 OPERATING EXPENSES Annual Meeting 100.00-100.00 General Maintenance 2,500.00 655.99 3,500.00 Insurance 2,600.00 1,497.00 2,600.00 Bank Charges 164.00-164.00 Management 7,686.00 7,045.50 7,686.00 Miscellaneous 100.00-100.00 Office Expense 200.00 135.60 200.00 Main Road Maintenace 8,000.00 1,995.00 12,000.00 TOTAL OPERATING COST 21,350.00 11,329.09 26,350.00 Contingency 3,050.00 3,050.00 3,050.00 TOTAL 24,400.00 14,379.09 29,400.00 NET INCOME 10,031.05 - Contingency Fund Balance August 1, 2016 $ 15,254.14 - estimated Estimated Interest $ 5.00 Estimated Bank Charges $ (5.00) 2016-17 Contingency Fund Contribution $ 3,050.00 2016-17 Approved Projects $ - Estimated Ending Balance July 31, 2017 $ 18,304.14
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