Securities and Exchange Commission v. Nadel et al

Filing 1311

DECLARATION of Burton W. Wiand re 1310 Verified MOTION for miscellaneous relief, specifically to Enforce Constructive Trust through Turnover of Real Property, or in the Alternative, through Foreclosure of the Receiver's Equitable Lien by Burton W. Wiand. (Attachments: # 1 Exhibit A - Doc 29 Order granting partial motion for summary judgment, # 2 Exhibit B - Final Judgment, # 3 Exhibit C - BK Case Doc 39 Order Granting Motion to Confirm Termination or Absence of Stay or Alternatively Relief From the Automatic Stay, # 4 Exhibit D - AQ Doc 115 Motion to transfer, # 5 Exhibit E - AQ Doc 182 ORDER granting 115 Motion to transfer; granting 117 Motion to transfer, # 6 Exhibit F - AQ Doc 184 Turnover Order, # 7 Exhibit G - 1 (pages 1-25) - AQ Doc 258 MOTION for confirmation of sale of Realty - with exhibits, # 8 Exhibit G - 2 (pages 25-50) - AQ Doc 258 MOTION for confirmation of sale of Realty - with exhibits-2, # 9 Exhibit G - 3 (pages 51-101) - AQ Doc 258 MOTION for confirmation of sale of Realty - with exhibits-2, # 10 Exhibit H - AQ Doc 263 FINAL JUDGMENT CONFIRMING RECEIVER'S SALE OF REALTY, # 11 Exhibit I - Hudgins Doc 264 Order Approving Sale of Real Propert)(Lamont, Michael)

EXHIBIT G

Case 6:07-cv-00608-ACC-DAB Document 258 Filed 08/11/10 Page 1 of 8 PageID 2658

UNITED STATES DISTRICT COURT
MIDDLE DISTRICT OF FLORIDA
ORLANDO DIVISION
CASE NO.: 6:07-cv-0608-ORL-22-DAB
SECURITIES AND EXCHANGE COMMISSION,

)
)
Plaintiff,
)
)
-v.
)
)
AQUACELL BATTERIES, INC. and
)
MICHAEL J. NASTE,
)
)
Defendants,
)
)
AQUACELL BATTERIES FLORIDA, INC.,
)
ETERNERGY, INC.,
)
GAMING SOFTWARE, INC.
)
(f/k/a BET-NET ENTERPRISES, INC.),
)
GAMING SOFTWARE INTERNATIONAL,
)
GODFATHER’S INC.,
)
MIGHTY MUSCLE CARS, INC., and
)
HOLLYWOOD MOVIE HAIR PRODUCTS, INC.
)
)
Relief Defendants.
)
________________________________________________/
RECEIVER, MICHAEL L. GORE’S MOTION FOR CONFIRMATION OF
PRIVATE SALE OF REALTY
(165 KNOLL TOP ROAD, ROBBINSVILLE, NORTH CAROLINA)
Receiver Michael L. Gore (“the Receiver”) moves this Court for the entry of an Order,
pursuant to 28 U.S.C. § 2001(b), confirming the Receiver’s sale to Dennis J. Schneider and
Virginia Schneider (“Buyers”) of real property located at 165 Knoll Top Road, Robbinsville,
North Carolina (the “Property”), and states as follows:
BACKGROUND
1.

On April 12, 2007, the Securities and Exchange Commission (“SEC”) commenced

this enforcement action against the corporate defendant, Aquacell Batteries, Inc., individual
defendant, Michael J. Naste (“Mr. Naste”), and relief defendants, Aquacell Batteries Florida,

Case 6:07-cv-00608-ACC-DAB Document 258 Filed 08/11/10 Page 2 of 8 PageID 2659

Inc., Eternergy, Inc., Gaming Software, Inc. (f/k/a Bet-Net Enterprises, Inc.), Gaming Software
International, Godfather’s Inc., Mighty Muscle Cars, Inc., and Hollywood Movie Hair Products,
Inc.
2.

On April 13, 2007, this Court entered its Temporary Restraining Order (“TRO”)

and Order Appointing Receiver in this action.

On May 24, 2007, this Court entered its

Preliminary Injunction Order (“PIO”).
3.

Based upon the sworn allegations made by the SEC in its Complaint and based

upon the Receiver’s independent investigation, the Receiver determined that funds from
Aquacell were used to purchase a home located at 165 Knoll Top Road, Robbinsville, North
Carolina, Legal Description recorded in Book: 00281, Page 0179, Graham County Official
Records, more fully described as follows:
Lot B-3, Stecoah View Subdivision, Stecoah Township, Graham
County, North Carolina, as described and conveyed in the deed
dated December 12, 2005, from Stecoah Vista, LLC to Trophy
Group, Inc., said deed being recorded at Deed Book 263, Page 389,
Graham County Registry of Deeds. Being the same real property
purported to be conveyed in the deed dated April 19, 2007, from
Trophy Group, Inc. to MWH Investments, LLC, said deed being
recorded at Deed Book 281, Page 179, Graham County Registry of
Deeds
(hereinafter, the “Property”).
4.

Thereafter, on May 9, 2008, the Receiver filed his Motion for the Entry of an

Order Directing the Turnover and Transfer of Certain Real Property Located in Graham County,
North Carolina [DOC 115].
5.

On September 23, 2008, the Court entered an Order Transferring Title of the

Property Located in Graham County, North Carolina [DOC 184].
6.

The Receiver immediately undertook efforts to market and sell the Property

through the use of a licensed, experience residential estate broker located in the Graham County

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area, Southland Realty.

The agent listed the Property on the local MLS system, took

photographs and published its listing online, conducted several open houses and contacted local
brokers. Over the course of more than eighteen (18) months, Southland Realty aggressively
marketed the Property, initial listing the Property for $249,000.00. Due to the conditions
throughout the U.S. economy in general, and the depressed market for vacation homes
specifically, Southland Realty adjusted its listing price with the approval of the Receiver in order
to stimulate interest in the Property Most recently, the asking price was lowered to $159,900.
Pursuant to the listing agreement with Southland Realty, the Receiver is responsible for paying a
standard real estate commission of 7% percent on the sale of the Property.
7.

As a result of these efforts, the Receiver entered into an agreement (“Purchase

Agreement”) for the purchase of the Property for $140,000, which the Buyers have made an
earnest money deposit in the amount of $2,000. A true and correct copy of the Purchase
Agreement is attached hereto as Exhibit “A”.
8.

Based on the terms of the Purchase Agreement and in conformance with 28 U.S.C.

§ 2001(b), the Receiver has done the following:
a)

The Receiver obtained three appraisals on the Property from licensed,

disinterested real estate appraisers estimating the market value of the Property to
be $158,000 (7/23/10), $151,500 (7/30/10) and $224,000 (7/30/10), for an average
appraised value of $177,833.33. True and correct copies of the appraisals are
attached hereto as Composite Exhibit “B”. The purchase offer exceeds two-thirds
of the average appraised value (as required by 28 U.S.C. § 2001(b)).
b)

The Receiver has published the Notice of Sale of the Property to the Buyer

“Notice of Sale”) commencing on August 5, 2010 in a newspaper of general
circulation, The Graham Star. Attached hereto as Composite Exhibit “C” is a

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copy of the Notice of Sale and the Affidavit of Publication. The Notice of Sale
details the terms of the proposed sale to the Buyer, including the property
description and the price, and allows for the submission and consideration of
overbids as set forth in 28 U.S.C. § 2001(b), provided that such are received by
August 16, 2010, by 5:00 p.m. EDT. Pursuant to 28 U.S.C. § 2001(b), the overbid
must be at least $154,000.
9.

Based on the publication of the Notice of Sale, the Receiver will notify the Court if

any bids greater than $154,000.00 are received by 5:00 p.m. EDT on August 16, 2010. Should
the Receiver receive no higher bids, then the Receiver requests that the Court confirm the sale in
accordance with the terms of the Purchase Agreement and upon such notification by the
Receiver, enter the proposed Order Confirming the Sale and Final Judgment, attached hereto as
Exhibits D and E.
10.

Based upon the appraised market values of the Property, the Receiver believes that

the sale price of $140,000.00 is an appropriate amount and the sale of the Property could realize
a significant recovery for investors. The Receiver proposes to satisfy the costs and expenses of
the sale (e.g., brokerage fees and prorations for property taxes, insurance, etc…).
DISCUSSION
11.

28 U.S.C. § 2001(b) governs the Receiver’s sale of the Property. Specifically, the

statutes provides:
Before confirmation of any private sale, the court shall appoint
three disinterested persons to appraise such property or different
groups of three appraisers each to appraise properties of different
localities. No private sale shall be confirmed at a price less than
two-thirds of the appraised value. Before confirmation of any
private sale, the terms thereof shall be published in such newspaper
or newspapers of general circulation as the court directs at least ten
days before confirmation. The private sale shall not be confirmed
if a bona fide offer is made, under conditions prescribed by the

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court, which guarantees at least a 10 per centum increase over the
price offered in the private sale.
28 U.S.C. § 2001(b).
12.

Section 2001(b) requires that the Receiver publish a notice of the sale of real

property in a newspaper of general circulation, and the Receiver has published such a notice in
The Graham Star newspaper.

The notice provided the details of the sale (including the

property description and the price), and allowed for the submission (on or before August 16,
2010, by 5:00 p.m. EDT) and consideration of overbids in the amount of $154,000.
13.

Section 2001(b) also requires the Court to “appoint three disinterested persons to

appraise” the property in question, and to approve the sale only if the price is at least two-thirds
of the “appraised-value.” As set forth above and as shown in Composite Exhibit “B” hereto,
the Receiver has already obtained appraisals from three disinterested appraisers. Accordingly,
the Receiver also requests that this Court approve the appraisers selected by the Receiver. Each
of these appraisers is licensed and qualified (and disinterested), and the purchase offer exceeds
two-thirds of the average appraised value.
14.

The Receiver believes that the sale of the Property to the Buyers pursuant to the

price, terms, and conditions provided in Exhibit “A” is in the best interest of the Receivership
Estate. First, the sale of the Property at this time will ensure that the Receiver will not have to
bear the carrying costs and risks associated with continuing to own the Property. The Receiver’s
carrying costs include real property taxes, insurance, utilities, and other upkeep expenses.
Finally, if the sale to the Buyers is confirmed, the Property should produce net proceeds of
approximately $125,000.
15.

The Receiver considered the following factors to conclude the Buyers’ $140,000

purchase price to be reasonable: a) the financial crisis in the United States which commenced in

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September 2008 and continues through today, particularly in the housing and credit markets and,
b) the length of time the property has been on the market (approximately 21 months) together
with the lack of interest in the Property.

Indeed, given today’s economic conditions, the

Receiver believes that this proposed sale is an appropriate outcome for the estate.
16.

Accordingly, the Receiver requests that this Court confirm the sale to the Buyers,

permit the Receiver to close the transaction, and issue such other and further relief as is just. For
this Court’s convenience, a proposed Order granting this Motion and confirming the sale is
attached as Exhibit “D”. In addition, and in order to ensure finality for the protection of the
Buyers, the Receiver also requests that this Court issue a Final Judgment, under Rule 54(b),
Fed.R.Civ.P., confirming the foregoing sale. See Bank of Lincolnwood v. Fed. Leasing, Inc., 622
F.2d 944, 947 (7th Cir. 1980) (certification under Federal Rule 54(b) is appropriate if action
involves multiple claims for relief or multiple parties, there is a final decision as to at least one
claim or the rights and liabilities of at least one of the parties, and there is an express
determination that there is no just reason for delay and that a final judgment should be issued).
Here, the Buyers of Property are not parties to this action and will have no further role in this
action. Accordingly, the Buyers should not have to wait until the conclusion of the entire case
before having finality with respect to the issuance of a Final Judgment confirming the sale of the
Property. For this Court’s convenience, a proposed Final Judgment is attached hereto as Exhibit
“E”.

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Case 6:07-cv-00608-ACC-DAB Document 258 Filed 08/11/10 Page 7 of 8 PageID 2664

RULE 3.01(G) STATEMENT
Counsel for the SEC is in agreement with the relief sought in this Motion.
Dated this 11th day of August, 2010.
/s/ Eric C. Reed
Jonathan Cohen
Florida Bar No. 384305
E-mail: [e-mail]
Shutts & Bowen LLP
1500 Miami Center
201 South Biscayne Boulevard
Miami, FL 33131
Telephone:
[phone]
Facsimile:
[phone]
And
Andrew M. Brumby, Esq.
Florida Bar No.: 650080
E-mail: [e-mail]
Eric C. Reed, Esq.
Florida Bar No.: 0557161
E-mail: [e-mail]
Shutts & Bowen LLP
300 S. Orange Ave., Suite 1000
Orlando, FL 32801-5403
Telephone:
[phone]
Facsimile:
[phone]
Counsel for Receiver

CERTIFICATE OF SERVICE
I HEREBY CERTIFY that on August 11, 2010, I electronically filed the foregoing
document with the Clerk of the Court using CM/ECF. I also certify that the foregoing document
is being served this day on all counsel of record or pro se parties identified on the attached
Service Lists by either transmission of Notices of Electronic Filing generated by CM/ECF or in
some other authorized and specified manner for those counsel or parties who are not authorized
to receive electronically Notices of Electronic Filing.
/s/ Eric C. Reed
OF COUNSEL

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SERVICE LIST VIA ELECTRONIC MAIL
James V. Etscorn, Esq.
Florida Bar No. 705111
E-mail: [e-mail]
BAKER & HOSTETLER LLP
SunTrust Center, Suite 2300
200 South Orange Avenue
Post Office Box 112
Orlando, FL 32802-0112
Telephone: [phone]
Facsimile: [phone]
Attorneys for Defendants

Scott A. Masel, Esq.
Senior Trial Counsel
Florida Bar No. 0007110
Direct Dial: [phone]
E-mail: [e-mail]
Trial and Lead Counsel
Elizabeth D. Fatovich, Esq.
Senior Counsel
New York Bar No. 3984283
Direct Dial: [phone]
E-mail: [e-mail]
SECURITIES AND EXCHANGE COMMISSION
801 Brickell Avenue, Suite 1800
Miami, FL 33131
Telephone: [phone]
Facsimile: [phone]
Attorneys for Plaintiff

John J. Carney, Esq.
Telephone: [phone]
Email: [e-mail]
Jimmy Fokas, Esq.
Telephone: [phone]
Email: [e-mail]
BAKER & HOSTETLER LLP
45 Rockefeller Plaza
New York, NY 10111
Co-counsel for Defendants
Jonathan R. Williams, Esq.
Florida Bar No. 178810
E-mail: [e-mail]
JONATHAN R. WILLIAMS, P.A.
Post Office Pox 9247
Daytona Beach, FL 32120
Telephone: [phone]
Facsimile: [phone]
Counsel for Tina Mitchell
Tucker H. Byrd, Esq.
E-mail: [e-mail]
MORGAN & MORGAN, P.A.
20 North Orange, Suite 1600
Orlando, Florida 32801
Telephone: [phone]
Attorneys for Mike Andrews

John P. Knight, Esq.
Email: [e-mail]
Meghan L. Riordan, Esq.
Email: mriordan@morrison mahoney.com
MORRISON MAHONEY LLP
250 Summer Street
Boston, MA 02210
Telephone: [phone]
Facsimile: [phone]
Counsel for Candace and Tiffany Naste
L. Reed Bloodworth, Esq.
Florida Bar No. 0718491
Email: [e-mail]
Dean, Mead, Egerton, Bloodworth,
Capouano & Bozarth, P.C.
Post Office Box 2346
Orlando, FL 32802-1200
Telephone: [phone]
Facsimile: [phone]
Local Counsel for Pro Hac Vice Admission

SERVICE LIST VIA U.S. MAIL
Timothy Fieldler, Esq.
E-mail: [e-mail]
FOGLE & FIELDLER, PLLC
P.O. Box 24
Deland, Florida 32721-0024
Telephone: [phone]

Michael Hennigan, M.D.
1847 Florida Avenue
Panama City, FL 32405
E-mail: [e-mail]
Telephone: [phone]
Facsimile: [phone]

Diamond Capital LLC
c/o Scott C. Sinclair, Esq.
Sinclair Law Firm
416 Travis Street, Suite 715
Shreveport, LA 71101

Attorneys for Michael Naste, Jr.
ORLDOCS 11898588 3

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OFFER TO PURCHASE A~D CONTRACT
[Consult "GuideHnesn (form 2G) for guidance in completing this form]
Dennis J. Schneider and wife Virginia B. Schneider
,as Buyer,
hereby offers to purchase and
Owner of record/Michael L. Gore, Receiver
, as Seller,
upon acceptance of said offer, agrees to sell and convey, all of that plOl, piece or parcel ofland described below, together with all
improvements located thereon and such fixtures and personal property as are listed below (collectively referred to as the "Property"),
upon the tenns and conditions set forth herein. This offer shall become a binding contract on the date that: (i) the last one of the
Buyer and Seller has signed or initialed this offer or the final counteroffer, ifany, and (ii) such signing or initialing is communicated
to the party making the offer or counteroffer, as the case may be. Such date shall be referred to herein as the "Effective Date."

), REAL PROPERTY. Located in _ _ _--::R..;:.o=b=b.:.:in.:..:s~v::...:;.:.:II.;::e.L.!. .,:;N.=. C.: : :;.•:,. ....,;G:::;.ra::.=h.;,;:a::::m.:.:.....;C=o=::u:.;:n.:..tvL.-_ _ _ County, State of North Carolina,.,
o
and is known more particularly and described as:
Address: Street
165 Knoll Top Road
City:
Robbinsville. NC
Zip
28771
NOTE: Governmental authority over taxes, zoning, school districts, utilities and mail delivery may differ from address shown.
Legal Description: 3bdrml3ba 2 StOry Home located on Lot B-3
Subdivision Name:
Stecoah View Subdivision
Plat Reference: Lot
Lot B-3
, Block or Section
n/a
as shown
on Plat Book or Slide
nla
at Page(s)
nla
(Property acquired by Seller in Deed Book
00281
at Page 0179 ).
NOTE: Prior to signing this Offer to Purchase and Contract - Vacant Lot/Land, Buyer is advised to review Restrictive Covenants. if
any, which may limit the use of the Property, and to read the Dec1aration of Restrictive Covenants, By-Laws, Articles of
Incorporation, Rules and Regu]ations. and other governing documents of the owners' association and/or the subdivision, ifapplicable.
If the Property is subject to regulation by an owners' association, it is recommended that Buyer obtain a copy ofa completed Owners'
Association Disclosure And Addendum (standard fonn 2A 12-T) prior to signing this Offer to Purchase and Contract, and include it as
an addendum hereto,
2. FIXTURES: The following items, if any, and if owned by the Seller, are included in the purchase price free ofliens: any built-in
appliances, light fixtures, ceiling fans, attached floor coverings, blinds, shades, drapery rods and curtain rods, brackets and all
related hardware, window and door screens, storm windows, combination doors, awnings, antennas, satellite dishes and receivers,
burglar/fire/smoke alarms, pool and spa equipment, solar energy systems, attached fireplace screens, gas logs~ fireplace inserts. electric
garage door openers with controls. outdoor pLants and trees (other than in movable containers). basketball goals, storage sheds,
mailboxes, wall and/or door mirrors, attached propane gas tank, invisible fencing including all related equipment, lawn irrigation
systems and all related equipment, water softener/conditioner and filter equipment, and any other items attached or affixed to the
Property, EXCEPT any such items leased by the Seller and the following items: .:.:n.=o;.;.:n:".;:e'--_________________

3. PERSONAL PROPERTY: The following personal property is included in the purchase price: See Attachment A

4. PURCHASE PRICE: The purchase price is $
140,000.00
and shalJ be paid in U,S,
Dollars. Should any check or other funds paid by Buyer be dishonored, for any reason, by the institution upon which the payment is
drawn, Buyer shall have one (I) banking day after written notice to deliver good funds to the payee. In the event Buyer does not
timely deliver good funds, the Seller shall have the right to tenninate this contract upon written notice to the Buyer, The purchase
price shall be paid as follows:
(a) $
2,000.00
, EARNEST MONEY DEPOSIT with this offer by [J cash ~ personal check ::J bank check
:=J certified check =:J other:
to be deposited and held in
escrow by
McKinney and Taflant Trust Account
("Escrow Agent") until the sale is closed,
at which time it will be credited to Buyer, or until this contract is otherwise terminated. In the event: (1) this otTer is not accepted;
or (2) any of the cond itions hereto are not satisfied, then all earnest mon ies shall be refunded to Buyer, In the event of breach of
this contract by Seller, all ~arnesl monies shall be refunded to Buyer upon Buyer's request, but such r~tum shaIl not affect any
other remedies avatlable to Buyer for such breach. In the event of breach of this contract by Buyer, then all earnest monies shall be
forfeited to ScHer upon Selle(s request, but such forfeiture shall not atfect any other remedies availabJe to Seller for such breach.

III

AtALTO~

Page t of8
This rorm jointly approved by:
North Carolina Bar Associatjon
North Carolina Association of REAL TORS®, Inc.
Buyer initials ~
This fOlm pro6.Jcad t7f.

»&r

FornxIIator.

ST ANDARD FORM 2-T
Revised 7/2008
@ 712009

Seller initials _~;;;....;:..~_ _ _ __

EXHIBIT

80()·499·9612

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NOTE: In the event of a dispute between Seller and Buyer over the return or forfeiture of earnest money held in escrow. a licensed
real estate broker ("Broker") is required by slate law (and Escrow Agent. if not a Broker. hereby agrees) to retain said earnest money
in the Escrow Agent's trust or escrow account until Escrow Agent has obtained a written release from the parties consenting to its
disposition or until disbursement is ordered by a court of competent jurisdiction. Alternatively. jf a Broker is holding the Earnest
Money, the Broker may deposit the disputed monies with the appropriate clerk of court in accordance with the provisions ofN.C.G.S.
§93A-12.

THE PARTIES AGREE THAT A REAL ESTATE BROKERAGE FIRM ACTING AS ESCROW AGEl"'T MAY PLACE
ANY EARNEST MONIES DEPOSITED BY BUYER IN AN INTEREST BEARl~G TRUST ACCOUNT AND THAT A~Y
INTEREST EARNED THEREON SHALL BE DISBURSED TO THE ESCROW AGENT MONTHLY IN
CONSIDERATION OF THE EXPENSES INCURRED BY l.\-lAINTAINING SUCH ACCOUNT AND RECORDS
ASSOCIATED THEREWITH.
(b) $ _ _ _ _ _ _ _ _ _ _"""nA:..=a, (ADDITIONAL) EARNEST MONEY DEPOSIT to be paid to Escrow Agent no later than

_ _ _ _ _ _ _ _ _ _ • TIME BEING OF THE ESSENCE WITH REGARD TO SAID DA TE.
"la, OPTION FEE in accordance with paragraph 16, Alternative 2, to be paid to Seller on the
(e) $
Effective Date. (NOTE: If Alternative 2 applies~ then do not insert $0, N/A, or leave blank).
(d) $
nla, BY ASSUMPT10N of the unpaid principal balance and ail obligations of SeJler on the
existing
loan(s) secured by a deed of trust on the Property in accordance with the attached Loan Asswnption Addendum.
nla, BY SELLER FINANCING in accordance with the attached Seller Financing Addendum.
(e) $
(1) $
138.000.00. BALANCE of the purchase price in cash at Closing.
5. LOAN CONDITION:
(a) Loan: Buyer's perfonnance is contingent upon Buyer's ability to obtain a 0 FHA [] V A (attach FHAIV A Financing Addendum)
C Conventional o Other:
cash sale
loan at a C Fixed Rate 0 Adjustable Rate in the
principal amount of
nla
(plus any financed VA Funding Fee or FHA MIP) for a tenn of
n/a
year(s), at an initial interest rate not to exceed
n/a
% per annum, with mortgage loan discount points not to
exceed
n/a
% and with loan origination fee not to exceed
nla
% of the loan runount ("Loan").
(b) Loan Obligations: The Buyer agrees to:
(i) Make written application for the Loan, authorize any required appraisal and pay any necessary fees within
n/a
days
after the Effective Date;
(ii) Promptly furnish Sener written confinnation from the lender ofbaving applied for the Loan.
I f Buyer fails to furnish Seller written confirmation from the lender of having applied for the Loan, SelJer may make written demand
for compliance. If Buyer does not furnish Seller written confinnation from the lender of application within five (5) days after such
demand, then Seller may terminate this contract by written notice to Buyer at any time thereafter, provided Seller has not received
either written evidence of the application or a walver of the Loan Condition, and all Earnest Money shall be forfeited to Seller as
liquidated damages and as Seller'S sale and exclusive remedy for Buyer's failure to close, but without limiting Seller's rights under
paragraph 17 for damage to the Property. Buyer further agrees to:
(iii) Pursue qualification for and approval of the Loan diligently and in good faith;
(iv) Continually and promptly provide requested documentation to lender.
(c) Buyerts Right to Terminate: rr Buyer has complied with Buyer's Loan Obligations in subsection (b) above, then within
n/a
days after the Effective Date (or any agreed-upon written extension oftbis deadline) TIME BEING OF THE
ESSENCE, Buyer shall have the right to terminate this contract by delivering to Seller written notice of termination if Buyer, in
Buyer's sale discretion, is not satisfied that the Loan wiJl be approved and funded. If Buyer has timely delivered such notice, this
contract shall be tenninated and all Earnest Money shalt be refunded to Buyer. If Buyer fails to deliver such notice, then Buyer will be
deemed to have waived this condition. Thereafter, jf Buyer fails to close based upon inabi lity to obtain the Loan, then all Earnest
Money shall be forfeited to Seller. If Buyer provides Seller reasonable third-party documentation confirming Buyer's inability to
obtain the Loan, then the Earnest Money shall serve as liquidated damages and as Seller's sole and exclusive remedy for Buyer's
fai Jure to close, but without lim iting Seiler'S rights under paragraph 17 for damage to the Property. (WARN1:'lG: Buyer is advised to
consult with Buyer's lender to assure that the number of days allowed for Buyer to obtain the Loan is sufficient to allow Buyer's lender
time to take all reasonable steps necessary to provide reliable Joan approval.)
6. FLOOD HAZARD DISCLOSURE/CONDITION (Choose O:\iE of the following alternatives):
Page 2 of8

Buyer

initial~ --{(£c

Tl"n 10m prodwlc::

b¥

FornJuIator.

Seller initials

_71:
_________

STANDARD FORM 2-T
Revised 7/2008
() 712009

8CO-4~12

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828-479-1223

To the best of Seller's knowledge, the Property IS located partly or entirely within a designated Special Flood Hazard Area. Buyer
understands that it may be necessary to purchase flood insurance in order to obtain any loan secured by the Property from any
federally regulated institution or a loan insured or guaranteed by an agency of the U.S. Government.
To the best of Seller's knowledge. the Property IS NOT located partly or entirely within a designated Special Flood Hazard Area.
If, following the Effective Date of this contract, it is determined that any permanent improvements on the Property are located
within a designated Special Flood Hazard Area according to the current FEMA flood map, or if this contract is subject to a Loan
Condition and Buyer's lender requires Buyer to obtain flood insurance as a condition of making the Loan. then in either event
Buyer shall have the right to terminate this contract upon written notice to Seller, and all earnest monies shall be refunded to
Buyer.

7. OTHER CONDITIONS: (State N/A in each blank that is not a condition to this contract.)
(a) There must be no restriction, easement, zoning or other governmental regulatjon that would prevent the reasonable use of the
Property for
residential
purposes.
(b) The Property must be in substantially the same or better condition at Closing as on the date of this offer, reasonable wear and tear
excepted.
(c) The Property must appraise at a value equal to or exceeding the purchase price or, at the option of Buyer. this contract may be
terminated and al( earnest monies shall be refunded to Buyer. even if the Loan Condition has been waived as provided in
paragraph 5.
If this contract is NOT subject to a financing contingency requiring an appraisal, Buyer shall arrange to have the appraisal
completed on or before
nla
Cd) All deeds of trust, liens and other charges against the Property, not assumed by Buyer, must be paid and satisfied by Seller prior [0
or at Closing such that cancellation may be promptly obtained following Closing. Seller shall remain obHgated to obtain any such
cancellations following Closing.
(e) Title must be delivered at Closing by GENERAL WARRANTY DEED unless otherwise stated herein, and must be fee simple
marketable and insurable title, free of all encumbrances except: ad valorem taxes for the current year (prorated through the date of
Closing); utility easements and unviolated restrictive covenants that do not materially affect the value of the Property; and such
other encumbrances as may be asswned or specifically approved by Buyer. The Property must have legal access to a public right
of way.

8. SPECIAL ASSESSMENTS: 2\fOTE: For purposes of this agreement, a "confirmed" special assessment is defined as an
assessment that has been approved by a governmental agency or an owners' association for the purpose(s) stated, whether or not it is
fully payable at time of closing. A "pending" special assessment is defined as an assessment that is under fonnal consideration by a
governing body. Seller warrants that there are no pending or con finned governmental special assessments for sidewalk. paving, water,
sewer, or other improvements on or adjoining the Property, and no pending or confirmed owners' association special assessments.
except as follows (Insert ·'None" or the identification of such assessments, ifany): Home Owners In Stecoah View
Subdivision pay $100. per year toward road maintenance
UnJess otherwise agreed, Seller shall pay all owners' association assessments and alJ governmental assessments confirmed through the
time of Closing. jfany. and Buyer shall take title subject to all pending assessments disclosed by Seller herein, ifany.
9. PRORATIONS .I\ND ADJUSTME~TS: Unless otherwise provided, the following items shall be prorated and either adjusted
between the parties or paid at Closing: (a) Ad valorem taxes on real property shall be prorated on a calendar year basis through the
date of Closing; Cb) Ad valorem taxes on persona] property for the entire year shall be paid by the SeBer unless the personal property
is conveyed to the Buyer, in which case, the personal property taxes shall be prorated on a caJendar year basis through the date of
Closing; (c) All late listing penalties, irany. shall be paid by Seller; (d) Rents, ifany, for the Property shall be prorated through the
date of Closing; (e) Owners' association dues and other like charges shall be prorated through the date of Closing. Seller represents
that the regular owners' association dues, if any, are $
nla
per
nfa
. Unless otherwise agreed,
Buyer shaH pay any fees required for obtaining account payment information on owners' association dues or assessments for payment
or proration and any charge made by the owners' association in connection with the disposition of the Property to Buyer, including
any transfer andlor document fee imposed by the owners' association.
J o. F:XPENSES: Unless otherwise agreed, BUyer shall be responsible for all costs with respect to any loan obtained by Buyer.
appraisal, title search. title insurance, recording the deed and for preparation and recording of all instruments required to secure the
balance of the purchase price unpaid at Closing. Seller shall pay for preparation ofa deed and all other documents necessary to
perfonn Seller'S obligations under this agreement, and for excise tax. (revenue stamps) required by law. Seller shall pay at Closing

l3uycr initials

L

ThIS form produced by:

Page 3 ofS

(r6Y

FonnuIator.

Seller initials

STANDARD FORM 2-T
Revised 7120()8
© 7/2009

800·499-0012

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From La

p.5

828-479-1223

$
nla
toward any of Buyer's expenses associated with the purchase of the Property, including any
FHA/VA lender and inspection costs that Buyer is not permitted to pay, but excJuding any portion disapproved by Buyer's lender.

11. HOME WARRANTY: If a home warranty is to be provided, select one of the following: 0 Buyer may obtain a one-year home
warranty at a cost not to exceed S
nla
and Seller agrees to pay for it at Closing. 0 Seller has obtained and will provide a
one-year home warranty from
nla
at a cost of$
nla
and will pay for it at Closing.
12. FUEL: Buyer agrees to purchase from Seller the fuel. if any. situated in any tank on the Property at the prevaiting rate with the
cost of measurement thereof, ifany, being paid by Se11er.
13. EVIDENCE OF TITLE: Seller agrees to use his best efforts to deliver to Buyer as soon as reasonably possible after the Effective
Date of this contract. copies of all title infonnation in possession of or available to Seller. including but not limited to: title insurance
policies, attorney's opinions on title, surveys, covenants, deeds, notes and deeds oftrust and easements relating to the Property. Seller
authorizes (1) any attorney presently or previously representing Seller to release and disclose any title insurance policy in
such attorney's file to Buyer and both Buyer's and Seller's agents and attorneys; and (2) the Property's title insurer or its agent to
release and disclose all materials in the Property's title insurer's (or title insurer's agent's) fi(e to Buyer and both Buyer's and SeHer's
agents and attorneys.
14. LABOR AND MATERIAL: Seller shall furnish at Closing an affidavit and indemnification agreement in form satisfactory to
Buyer showing that all labor and materia1s, if any, furnished to the Property within 120 days prior to the date of Closing have been
paid for and agreeing to indemnify Buyer against all loss from any cause or claim arising therefrom.
15. PROPERTY DISCLOSURE:
~ Buyer has received a signed copy ofthe N.C. Residential Property Disclosure Statement prior to the signing of this Offer
to Purchase and Contract.
Buyer has NOT received a signed copy of the N.C. Residential Property Disclosure Statement prior to the signing of this
Offer to Purchase and Contract and shall have the right to terminate or withdraw this contract without penalty prior to
WHICHEVER OF THE FOLLOWING EVEl\TS OCCURS FIRST: (1) the end of the third calendar day fo[[owing
receipt of the Disclosure Statement; (2) the end of the third calendar day following the date the contract was made; or (3)
CI()sing or occupancy by the Buyer jn the case of a sale or exchange.
D Exempt from N.C. Residential Property Disclosure Statement because (SEE GUIDELINES) .:...:n.;..:/a:=..--_ _ _ _ _ _ _ _ __

o

o

The Property is residential and was buiJt prior to 1978 (Attach Lead-Based Paint or Lead-Based Paint Hazards
Disclosure Addendum.)

16. PROPERTY INSPECTIONIINVESTIGATION (Choose ONLY ONE of the following Alternatives):

o

ALTERNATIVE 1:
(a) Property Condition: As to alJ permanent improvements except: .:...:n;:,.;/a::w...-_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ __
_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _--', it is a condition of this contract
that (1) the bunt-in appliances, electrical system, plumbing system, heating and cooling systems. roof coverings (including flashing
and gutters)7 doors and windows, exterior buiJding surfaces, structural components (including foundations, retaining walls, columns,
chimneys, floors, walls, ceilings and roofs), porches and decks, fireplaces and flues, crawl space and attic ventilation systems (if any),
water and sewer systems (public and private). shall be performing the function for which intended and shaH not be in need of
immediate repair; (ii) there shall be no unusual drainage conditions or evidence of excessi ve moisture adversel), affecting the
structure(s); and (iii) there shan be no friable asbestos or existing environmental contamination.
(b) Inspections/Repair Negotiations: Buyer, at Buyer's expense, may inspect or obtain such inspections of the Property as Buyer
deems appropriate. Only items covered by subsections (a)(i), (a)(ii). and (a)(iii) above ("::'Jecessary Repairs") are included in repair
negotiations under this contract. All inspections, including but not limited to any additional inspections recommended by Buyer's
inspector(g), shaJ) be completed and written notice of Necessary Repairs shall be given to Seller on or before
n/a
(the 44Repair Notice Date"). SeJIer shall have the option of completing Necessary Repairs or
refusing to complete them. Seller shan provide written notice to Buyer of Seller's response within
nla
days of Buyer's notice,
T/ME BE'JlVG OF THE ESSENCE. Seller's failure to provide said notice as required shall constitute an election by the Seller not to
complete Necessary Repairs. If Seller elects not to complete all Necessary Repairs, then Buyer shall have the option of (a) acceptjng
the Property in its present condition, (b) accepting Seller'S offer to make repairs to the extent and as described in the SeHer's response,
Page 4 of8
STANDARD FORM 2-T

Buyer

ini'ia"L l!Y6Y

This !oem prodJ~ by

FonnuIator.

Revised 7/2008
Seller initials

P'()()...499·9612

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(9712009

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or (c) terminating this contract~ in which case all earnest monies shall be refunded. The Buyer shall deliver the Buyer's written
decision to Seller within five (5) days after receiving the Seller's written response, or Seller's failure to respond, T1ME BEING OF
THE ESSENCE. Failure of Buyer to provide this written decision by the time stated herein shall constitute acceptance ofSeJler's
agreement to make repairs to the extent and as described in the SeHer's response. Buyer shal1 have the right to verity that any
Necessary Repairs have been completed in a good and workmanlike manner.
(c) Wood-Destroying Insects: Buyer shall have the option of obtaining, at Buyer's expense, a report from a licensed pest control
operator on a standard fonn in accordance with the regulations of the North Carolina Structural Pest Control Committee. stating that as
n/a
, there was no visible evidence of wood-destroying
to all structures, except
insects and containing no indication of visible damage therefrom. The report must be obtained on or before the Repair Notice Date. If
the report indicates that there is visible evidence of wood-destroying insects or visible damage therefrom, Seller shall have the option
of performing any required treatment or completing Necessary Repairs, or refusing to perfonn any required treatment or complete
Necessary Repairs. If Seller elects not to perform required treatment or complete Necessary Repairs, Buyer shall have the option of
accepting the Property without the required treatment or Necessary Repairs, or terminating the contract, in which case all earnest
monies shall be refunded. Buyer and Seller shall exercise their respective rights under this subsection (c) in the same manner and
within the same time limitations as set forth in subsectjon (b) above. The Buyer is advised that the inspection report described in this
paragraph may not always reveal either structural damage or damage caused by aeents or organisms other than wood-destroying
insects. Ifnew construction~ Sener shall provide a standard warranty of termite soil treatment.
(d) Radon Inspection: Buyer shall have the option, at Buyer's expense, to have the Property tested for radon on or before the Repair
Notice Date. The test result shall be deemed satisfactory to Buyer if it indicates a radon level of less than 4.0 pico curies per liter of
air <as of January t, 1997, EPA guidelines renect an "acceptable" level as anything less than 4.0 pico curies per liter orair). If
the test result exceeds the above-mentioned level, Seller shall have the option of: a) remediating to bring the radon level within the
satisfactory range; or b) refusing to remediate. Upon the completion of remediation, Buyer may have a radon test performed at Seller's
expense~ and jf the test result indicates a radon level Jess than 4.0 pico curies per liter of air, it shall be deemed satisfactory to the
Buyer. IfSeJIer elects not to remediate, or ifremediation is attempted but fails to bring the radon level within the satisfactory range,
Buyer shall have the option of: a) accepting the Property with its then current radon [eve]; or b) cenninating the contract. in which case
a11 earnest monies shall be refunded. Buyer and SelJer shall exercise their respective rights under this subsection (d) in the same
manner and within the same time limitations as set forth in subsection (b) above.
(e) Cost Of Repair Contingency: In addition to the above, Buyer shall have the right to terminate this contract if a reasonable
estimate obtained by Buyer of the tota1 cost of Necessary Repairs equals or exceeds S
nla
. Tbis right may be
exercised by Buyer without regard to any decision by Seller to complete. or refuse to complete. Necessary Repairs. Buyer shall notify
the Seller in writing of its decision to tenninate this contract under this Cost of Repair Contingency no later than seven (7) days
following the Repair Notice Date, TIME BEI1VG OF THE ESSENCE, in which case all earnest monies shall be refunded to Buyer.
Neither the cost of wood-destroying insect treatment under subsection (c) above nor the cost of radon remediation under subsection
(d) above shall be included in the cost of repairs under this subsection (e).
(0 CLOSING SHALL CONSTITUTE ACCEPTA~CE OF THE PROPERTY IN ITS THEN EXISTING CONDITION
UNLESS PROVISION IS OTHERWISE MADE IN WRITING.

:=J ALTERNA TtV E 2: (This Alternative applies ONLY ifAlternative 2 Is checked AND Buyer lias paid the Opl/on Fee.)
(a) Property Investigation with Option to Terminate: In consideration the sum set forth in paragraph 4(c) paid by Buyer to Seller
(not Escrow Agent) and other valuable consideration, the sufficiency of which is hereby acknowledged (the HOption Fee"), Buyer
shall have the right to tenninate this contract for any reason or no reason, whether related to the physical condition of the
Property or otherwise, by delivering to SeHer written notice of termination (the "Term ination Notice'9) by 5:00 p.m. on
nla
, 20 n/a TIME BEING OF THE ESSENCE (the ~'Optjon Termination Date'"). At any
time prior to Closing. Buyer shall have the right to inspect the Property at Buyer's expense (Buyer is advised to have all inspectionsl
investigations of the Property, including but not 1imited to those matters set forth in A1ternative I, perfonned prior to the Option
Tennjnation Date).
(b) Exercise of Option: If Buyer delivers the Termination Notice prior to the Option Termination Date, TIME BEING OF THE
ESSENCE, this contract shall become nu)) and void and all earnest monies received in connection herewith shall be refunded to
Buyer; however, the Option Fee will not be refunded and shall be retained by Seller. If Buyer fails to deliver the Termination )lotice to
Seller prior to the Option Termination Date. then Buyer wil1 be deemed to have accepted the Property in its physical condition existing
as of the Option Termination Date; provided such acceptance shall not constitute a waiver of any rights Buyer has under paragraphs 5,
6 or 7 above. The Option Fee is not refundable! is not a part of any earnest monies, and wiJI be credited to the purchase price at
Closing.
t

Page 5 ofS

Buyeriniti'l~ ~
Thi, lorm produr:ed by:

Formulator.

Seller initials

1f-:

STANDARD FORM 2-T
Revised 712008
<D 7/2009

800·499-9612

PAGE! 6/9' RCVD AT 715/20102:49:55 PM [l!astern Daylight Time)' SVR:SB-NAP-RFAX/6· DNIS:7259' CSID:828 4791223' DURATION (mm-ss):06-24

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(c) CLOSING SHALL CONSTITUTE ACCEPTANCE OF THE PROPERTY IN ITS THEN EXISTING CONDITION

UNLESS PROVISION (S OTHER\VISE MADE IN WRITI:"'JG.

17. REASONABLE ACCESS/RESTORATION AND INDEMl'"ITY: Seller will provide reasonable access to the Property
(including working, existing utilities) through the earlier of Closing or possession by Buyer. Buyer and Buyer's agents and
contractors shall have the right to enter upon the Property for the purpose of appraising and evaluating the Property, and perfonning
the tests and inspections pennitted in this contract. Buyer shall, at Buyer's expense. promptly repair any damage to the Property
resulting from any actlvities of Buyer and Buyer's agents and contractors, but Buyer shall not be responsible for any damage caused
by accepted practices either approved by the NC Home Inspector Licensure Board or applicable to any other NC licensed professiona1
perfonning the inspection that reveal Necessary Repairs as defined under Alternative 1 of paragraph 16. Buyer will indemnify and
hold Se1ler harmless from aU loss, damage, claims, suits or costs, which shall arise out of any contract, agreement, or injury to any
person or property as a result of any acti viti es of Buyer and Buyer's agents and con tractors re ]atl ng to the Property except for any loss,
damage, claim. suit or cost arising out of pre-existing conditions of the Property andior out of Seller's negJigence or willful acts or
omissions. This repair obligation and indemnity shall survive this contract and any tennination hereof. Buyer may conduct a walkthrough inspection of the Property prior to Closing._
18. CLOSING: Closing shall be defined as the date and time of recording of the deed and shall be on or before August 13,2010
(the "Closing Date"). AlJ parties agree to execute any and all documents and papers necessary in connection with Closing and transfer
of title on or before the Closing Date at a place and time designated by Buyer. The deed is to be made to Dennis J.Schne/der and
Virginia B. Schneider
Absent agreement to the contrary in this contract or any subsequent modification thereto, the foHowing terms shall apply: If either
party is unable to close by the Closing Date, then provlded that the party is acting in good faith and with reasonable ditigence to
proceed to closing, such party shall be entitled to reasonable delay of the Closing Date and shall give as much notice as possible to the
non-delaying party and closing agent. In such event. however, either party for whom the Closing Date is delayed shall have a
maximum often (10) days from the Closing Date, or any extension of the Closing Date agreed-upon in writing, in which to close
without payment of interest. Following expiration of the ten-day period, the party not ready to cJose shall be responsible for paying (0
the other party (if ready, willing and able to close) interest on the purchase price at the rate of eight percent (8%) per annwn accruing
from the end of the ten-day period until closing occurs or the contract is tenninated. Should the delay in closing continue for more
than thirty (30) days from the Closing Date or the last agreed-upon extensic)fi of the Closing Date, then the non-delaying party shall
have the unilateral right to tenninate the contract and receive the earnest money, but the right to such receipt shall not affect any other
remedies available to the non-delaying party for such breach.
19. POSSESSION: Unless otherwise provided herein. possession shall be delivered at Closing. In the event possession is NOT to be
delivered at Closing: 0 a Buyer Possession Before Closing Agreement is attached. OR, :J a Seller Possession After Closing
Agreement is attached. Se11er shall remove, by the date possession is made availabJe to the Buyer, all persona) property which is not a
part of the purchase and all garbage and debris from the Property.

20. OTHER PROVISIO~S AND CONDITIONS: (CHECK ALL STANDARD ADDENDA THAT rvlA Y BE A PART OF THIS
CO't'TRACT. IF ANY, AND ATTACH HERETO. ITEM1ZE ALL OTHER ADDENDA TO THIS CONTRACT, IF ANY. AND
ATTACH HERETO. (NOTE: UNDER 1\ORTH CAROLI;-.JA LA W, REAL ESTA TE AGENTS ARE NOT PERMITTED TO
DRAFT CONDITIONS OR CONTl:-.lGENCIES TO THlS CONTRACT.)

C Additional Provisions Addendum (form 2A 11-1)
o Loan Assumption Addendum (Form 2A6-T)
[J Back-Up Contract Addendum (Form 2A I - T ) O New Construction Addendum (Form 2A3-T)
Contingent Sale Addendum (Fonn 2A2-1)
0 Owners' Association Disclosure And Addendum (Fonn 2A 12-T)
FHA/VA Financing Addendum (Form 2A4-T)
0 Seller Financing Addendum (Form 2A5-T)
Insurance Availability/Affordability Addendum
r:JVacation Rental Addendum (Fonn 2A13-T)
__ (Form 370-T) (NC Association of REAL TORS form only)
LJ Lead- Based Paint Or Lead-Based Paint Hazard Addendum (Fonn 2A 9-T)
nOTI-lER: 1. Earnest money to be held by closing attorney 2. $ " Attachment A for reference to personal
grORflrty 3. Buyers are purchasing the subject property "as ;s ..

Page 6 of8

RUYCT

initi.JS~ m

STANDARD FORM 2-T

Seller initials

£fL:

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Revised 7/2008
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21. RISK OF LOSS: The risk ofloss or damage by fire or other casualty prior to Closing shall be upon Seller. If the improvements
on the Property are destroyed or materially damaged prior to Closing, Buyer may terminate this contract by written notice delivered to
Seller or Seller's agent and all deposits shall be refunded to Buyer. In the event Buyer does NOT elect to terminate this contrac~ Buyer
shall be entitled to receive, in addition to the Property, any of the Seller's insurance proceeds payabJe on account of the damage or
destruction applicable to the Property being purchased. Seller is advised not to cancel existing insurance on the Property until after
confinning recordation of the deed.
22. ASSIGNMENTS: This contract may not be assigned without the writlen consent of all parties, but if assigned by agreement,
then this contract shall be binding on the assignee and his heirs and successors.
23. TAX-DEFERRED EXCHANGE: In the event Buyer or Se1ler desires to effect a tax-deferred exchange in connection with the
conveyance of the Property, Buyer and Seller agree to cooperate in effecting such exchange; provided, however, that the exchanging
additional costs associated with such exchange; and provided further, that a non-exchanging party
party shall be responsible for
shall not assume any additional liability with respect to such tax-deferred exchange. Seller and Buyer shall execute such additional
documents. at no cost to the non-exchanging party, as shall be required to give effect to this provision. (NOTE: If Alternative 2 under
paragraph 16 of this contract wiIJ apply, SeHer should seek advice concerning the taxation of the Option Fee.)

an

24. PARTIES: This contract shall be binding upon and shall inure to the benefit of the parties, Le., Buyer and SeJler and their heirs,
successors and assigns. As used herein. words in the singular include the plural and the masculine includes the feminine and neuter
genders, as appropriate.
25. SURVIVAL: If any provision herein contained which by its nature and effect is required to be observed, kept or perfonned
after the Closing, it shall survive the Closing and remain binding upon and for the benefit of the parties hereto Wltil fully observed,
kept or perfonned.
26. ENTIRE AGREEMENT: This contract contains the entire agreement of the parties and there are no representations,
inducements or other provisjons other than those expressed herein. All changes, additions or deletions hereto must be in writing and
signed by aJl parties. Nothing contained herein shall alter any agreement between a REALTOR'» or broker and Seller or Buyer as
contained in any listing agreement. buyer agency agreement, or any other agency agreement between them.
27. NOTICE AND EXECUTION: Any notice or communication to be given to a party herein may be given to the party or to such
party's agent. Any written notice or communication in connection with the transaction contemplated by this contract may be given to
a party or a party's agent by sending or transmitting it to any mai1ing address, e-mail address or fax number set forth in the "Notice
Address~' section below. Seller and Buyer agree that the "Notice Information" and "Escrow Acknowledgment" sections below shall
not constitute a material part of this Offer to Purchase and Contract, and that the addition or modification of any infonnation therein
shall not constitute a rejection of an offer or the creation of a counteroffer. This contract may be signed in multipJe originals, all of
which together constitute one and the same instrument, and the parties adopt the word "SEAL" beside their signatures below.
28. COMPUTA nON OF DAYS: Unless otherwise provided, for purposes of this contract, the term '"days" shall mean consecutive
calendar days, including Saturdays! Sundays, and holidays, whether federal, state, local or religious. For the purposes of calculating
days, the count of "days'" shall begin on the day following the day upon which any act or notice as provided in this contract was
required to be performed or made.
Buyer ~ has

::J has not made an on-site personal examination of the Property prior to the making of this offer.

THE NORTH CAROLI~A ASSOCIATION OF REALTORS®, INC. AND THE NORTH CAROLINA BAR ASSOCIATION
MAKE NO REPRESENTATION AS TO THE LEGAL VALIDITY OR ADEQUACY OF ANY PROVISrON OF THIS FORM 1='J
ANY SPECIFIC TRANSACTlON. IF YOU DO NOT UNDERSTAND THIS FORM OR FEEL THAT IT DOES NOT PROVIDE
FOR YOUR LEGAL NEEDS, YOU SHOCLD CONSULT A NORTH CAROLINA REAL ESTATE AITORNEY BEFORE YOU
SIGN IT.

:~:~-~"..'L:"': ~ D~-:_n~n-_~=-.s_U~J!.A~_.~3~S:C=2: ':h_O~n. .; :1:" :e=O:" i" d~e~r~ ~-=-_-_-~ _-_(SEAL)
. -f:~_"'
.
Seller _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _(SEAL)

Page 70f8
STANDARD FORM 2-T
Revised 7/2008
© 112009

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NOTICE INFORl\lATION
NOTE: INSERT THE ADDRESS ANDIOR ELECTRONIC DELIVERY ADDRESS EACH PARTY AND AGENT APPROVES
FOR THE RECEIPT OF ANY NOTICE CONTEMPLATED BY THIS CONTRACT. INSERT "N/A" FOR ANY WHICH ARE
NOT APPROVED.

BUYER I\'OTICE ADDRESS:

SELLER C'OTICE ADDRESS:

Mailing Address: _____6=.,:7=-1=-.=E=a=s.;:..t,,;:::L=a=k:..:::;:e-=D:::;,,;r.:...:,i.,;;..v.-.,e_ _ __

Mailing Address: _-=3;:.00=-.,;::5;.:,..-=O:..:,ra..=n... .....v;...;8::.:;.L...:::,S.=,U.:.,:it=8-=1..,:::OOO=__
a=e"""A
•

Tarpon Springs. Fl. 34688

Orlando, Fl. 32801

Buyer Fax#: _______________________

Seller Fax#: _ _ _ _ _ _4..:..;O:...:7~·=84..:..9.::;,.·"""7=2=5=9_ _ _ _ __

Buyer E-mail Address: _ _. . .;d:. e:.: n;. :. :b:;, :a: .: rb.. :;. .;:,7-=6:. >o@:; oo:J.m=s;.;,.;n;,; , ;.c;: ;. ;o=m=-_ _

Sell er E-mail Address: _ _----:M=-:II.a=o.:...re@=;.;:s=h:..::;u:..:tt=s=.c.!;..o;:::;..m:..:.:-.____

SELLING AGENT NOTICE ADDRESS:

LISTING AGENT NOTICE ADDRESS:

Individual Selling Agent: _ _ _-..:.:M.:.::a=x:.:.in=e.....:W~.=B=a~h:.:..r_ _ __

Indi vidual Listing Agent : _ _ _~M::.:::ax=in~e=--..:W.:..:..:...-=B:..:::a~h::.:.r_ __

License #: _ _ _ _ _ _ _ _1:..,:5::.,:2::.,:9:.,.:0::..,:7 _ _ _ _ _ __
_

License #: _ _ _ _ _ _ _-.:.1..,:5:.::2=.9,:,0.:.,.7_ _ _ _ _ _ _ __

Finn Name:
Southland Realty
Acting as Buyer's Agent~Sener's (sub)Agent DDual Agent

Firm Name:
Southland Realtv
Acting as!&1 Seller's (sub)Agent 0 Dual Agent

Mailing Address: _ _ _ _ _ _ _ _ _ _ _ _ _ _ __

Mailing Address: _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ __

Selling Agent Fax#: _ _ _ _ _ _ _ _ _ _ _ _ _ __

Listing Agent fax#:. _ _ _ _ _ _ _ _ _ _ _ _ _ __

Selling Agent E-mail Address:_ _ _ _ _ _ _ _ _ _ __

Listing Agent E-mail Address: _ _ _ _ _ _ _ _ _ __

Selling Agent Phone#: _ _ _ _ _ _ _ _ _ _ _ _ _ __

Listing Agent Phone#: _ _ _ _ _ _ _ _ _ _ _ _ __

=

ESCROW ACKNOWLEDGMENT
Escrow Agent acknowledges receipt of the earnest money and agrees to hold and disburse the same in accordance with the
terms hereof.

Date _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ __

Firm; _ _.....:M=c.:...;K=in=n~e::::..yL_.,,;:a;:..::n_=d:....r.::..;:a=/..:..:/a::.;,n.:.;:t:...;~:..:,.,..:u:.::s:.::.t..::...A.:..:c::.,:c:.,.:o:;,.::u::.;,n..:..:t'--_ _
8y: _________________________________________

(Signature)

Page 8 of8
STANDARD FORM 2-'1'
Re)lised 7/2008

0712009

PAGE 9/9· RCVD AT 715/2010 2:49:55 PM [Eastern Daylight Time)' SVR:SB-NAP-RFAX/6' DNIS:7259· CSID:828 4791223' DURATION (mm-ss):06-24

Case 6:07-cv-00608-ACC-DAB Document 258-1 Filed 08/11/10 Page 9 of 9 PageID 2674
Jul 06 10 03:24p

SOUTHLAND REALTY

From La

p.2

828-479-1223

Attachment A

Offer to Purchase and Contract: July 1,2010

Buyers: Dennis and Virginia Schneider
Seller: Michael Gorel Receiver
Seller agrees to the household furnishings and the
accessories to remain with the property. They are
to be included in the sales price agreed upon
between the parties to the contract.

SellerlMichael GorelReceiver

<:::::

==4 $- !4fh&y --£ ~~CCJ~
L,

PAGE 212' RCVD AT 716120103:22:11 PM [Eastern Daylight Time)' SVR:SB·NAP-RFAX/4· DNI8:7259' CSID:828 4791223' DURATION (mm-ss):00·37

#/ltkutZ

~~r'

IFile 18 PageID
Case 6:07-cv-00608-ACC-DAB Document 258-2 Filed 08/11/10 Page 1 of No 101301 Page #11 2675

APPRAISAL OF REAL PROPERTY

LOCATED AT:
165 KNOLL TOP RD
BOOK 281 PAGE 179
ROBBINSVILLE, NC 28771

FOR:
SHUTTS & BOWEN LLP
3000 SOUTH ORANGE AVENUE, STE 1000, ORLANDS FL 32801

AS OF:
07/23/2010

BY:
TERRY W PHILLIPS

EXHIBIT
Form GA 1 - 'TOTAL lor Windows' appraisal software by a la mode, Inc

1,BOO·ALAMOOE

I

COMPOSITE
"B"

IFile 18 PageID
Case 6:07-cv-00608-ACC-DAB Document 258-2 Filed 08/11/10 Page 2 of No. 101301 Page #21 2676

FROM;

INVOICE

David Anderson

INVOtCE NUMBER

Anderson Appraisal Services, Inc
P.O , Box 35

.,

,';' .'

15 Haunted Hollow Trail
Brasstown, NC 28902

DATE' :-:

.

07/27/2010

Telephone Number: 828-837-5492

FIX Number: 826-837-6235

REFERENCE
TO:

In''mll On:Ier II:

SHUlTS & BOWEN LLP

LendtrC... II:

300 SOUTH ORANGE AVENUE

Client FIle II:

SUITE 1000

"'lin Flilil on fonn:

ORLANDO FL 32801

10130

Other AlII on fonn:
Fal Number:

Altlm.tI Number:

Federll To 10:

E-MIII:

Ttlephone Number:

EmployerlD:

Lendet': SHUnS & BOWEN LLP

57-1183495

Client

Purchaser/Bonower: NA
Property Addresa: 165 KNOLL TOP RD

City: ROBBINSVILLE

State:

County: GRAHAM
Legal Detcrlp!lon: BOOK 281 PAGE 179

ZIp: 28771

NC

APPRAISAl OF A SINGLE FAMILY RESIDENCE

350.00

SUBTOTAL
-

PAYMENTS
Cheek II: 2710
Check II :
Check II:

Om: 07 /21 /2010

Dlft:
0.11:

350.00

AMOUNT

Description: PAID BY AQUACELL BATTERIES
Description:

35000

Oescrtprton:

SUBTOTAL
TOTAL DUE /S

Form NIV5 - 'TOTAL tor Windows' appraisal soflware by a la mode, inc.
Anderson Appraisal Services, Inc.

1-800-ALAMODE

350.00
000

IFile 18 PageID
Case 6:07-cv-00608-ACC-DAB Document 258-2 Filed 08/11/10 Page 3 of No 101301 Page #31 2677

07/27/2010

SHuns & BOWEN LLP
3000 SOUTH ORANGE AVENUE, STE 1000, ORLANDS FL 3

Re: Property:
Borrower:
File No.:

165 KNOLL TOP RD
ROBBINSVILLE, NC 28771
NA

In accordance with your request, we have appraised the above referenced property. The report of that appraisal is
attached.
The purpose of this appraisal is to estimate the market value of the property described in this appraisal report, as
improved, in unencumbered fee simple title of ownership.
This report is based on a physical analysis of the site and improvements, a locational analysis of the neighborhood and
city, and an economic analysis of the market for properties such as the subject. The appraisal was developed and the
report was prepared in accordance with the Uniform Standards of Professional Appraisal Practice.
The value conclusions reported are as of the effective date stated in the body of the report and contingent upon the
certification and limiting conditions attached.
It has been a pleasure to assist you. Please do not hesitate to contact me or any of my staff if we can be of additional
service to you.

IFile No 101301 Page #41
Case 6:07-cv-00608-ACC-DAB Document 258-2 Filed 08/11/10 Page 4 of 18 PageID 2678

SUMMARY OF SALIENT FEATURES

Subject Address

165 KNOLL TOP RD

Legal Description

BOOK 281 PAGE 179

City

ROBBINSVILLE

County

GRAHAM

State

NC

Zip Code

28771

Census Tract

0075-37-9802

Map Rel8f8ooe

6602

S 140,000

Sale Price
Date of Sale

07/06/2010

Borrower

NA

LenderIC ent
II

SHUnS & BOWEN LLP

Size (Square Feet)

1,408

Price per Square Foot

S 99.43

Location
Age

5A 5E

Condition

AVG/GD

Total Rooms

6

Bedrooms

3

Baths

2

AppraislI(

:

AVERAGE

TERRY W. PHtLLlPS

Date 01 Appraised Value

07/23/2010

Opinioo 01 Value

S 158.000

Form SSD2 - 'TOTAL for Windows' appraisal software by a la mode, inc.

1·800·ALAMODE

IFile No.1 PageID
Anderson Appraisal
Case 6:07-cv-00608-ACC-DAB Document 258-2 Services, Inc. 08/11/10 Page 5 of 1801301 Page #51 2679
Filed

Um arm ReSI·d entia
·f
·IA

IR epart

~ pp ralsa
File# 10130
The purpose of this summary appraisal report is 10 provide the lender/client with an accurate. and adequately supported, opinion 01 the market value 01 the subject property.
Zip Code 28771
State NC
ProPeM>i Address 165 KNOLL TOP RD
City ROBBINSVILLE
Owner of Public Record MICHAEL L. GOREIRECEIVER
County GRAHAM
Borrower NA
leval Description BOOK 281 PAGE 179
Tax Year 2008 & 2009
R.E. Taxes S 2 602.40
Assessor's Parcel /I 6602 0000 5040B3
Map Relerence 6602
Census Tract 0075-37-9802
Neighborhood Name STECOAH TOWNSHIP
cg:J per year [] per month
( ] PUD HOAS 100
Special Assessments S 0
Occupant (J Owner ] Tenanl [8J Vac ant
" Properly Riohts Appraised IZI Fee Simple [ ] leasehold [ ] Other (describe)
Assigrunent Type [ Purchase Transaction ( ] Refinance Transaction I8l Other describe COURT PROCEEDINGS
Address 3000 SOUTH ORANGE AVENUE STE 1000 ORLANDS FL 32801
lender/C
Iienl SHUTTS & BOWEN LLP
Is the subject property currenlly oHerad for sale or has it been oHered for sale in the twelve months prior to lhe etfeclive date of this appraisal?
I:8J Yes (] No
Report data source(5) used ollerlng price{s). and dale(s). MLS 02125/2009 ~249 000 CHANGED SEVERAL TIMES WITH THE LAST CHANGE BEING
ON 06/23/2010 TO $159 000.
I I:8J did 0 did not analyze the contract lor sale lor the subject purchase transaction. Explain the resuns of lhe analysis 01 the contract lor sale or why the analysiS was not
.performed. APPEARS TO BE AN ARMS LENGTH TRANSACTION. BUYER IS BUYING PROPERTY AS IS.

Date of Contract 07/06/2010 Is the property seller !he ownar 01 public record? I:8J Yes [] No Data Source(s)
: Contract Price S 140 000
Is there any llnancial assistance (loan charges, sale concessions, gitl or downpayment assistance. etc.) to be paid by any party on behan 01 the borrower?
• nYes, report the total doJar amount and describe the itelm to be paid.

D Yes

[81 No

Note: Rac. Ind thl racial comJlOaition of the n~lghborhood I" not ~pplilul factor ••
One-tlnJt HoUling T,.,dI
Nefghborttood Chlllcltrlllles
One-Unlt Houllna
PreIent Land UtI "
[ Stable
location [ ] Urban
Propllfty Values [ ] Increasing
] Suburban ~ Rural
IZI Declining
PRICE
AGE
One-Unit
30 %
( In Balance IZI Over Supply S(0001
(yrs)
2-4 Unit
1%
• Buln-Up [ 1 Ovar 75% 1::><1 25·75% [ Under 25% DlITlandlSuoply [ ] Shortage
[ Slow
Marketing Time [J Under 3 rn1hs
~ S1able
low NEW MuIti·Family
1%
: Growth ( J Rapid
3-6 mitis IZI Over 6 mths
60
, Neighborhood Boundaries IN THIS RURAL MOUNTAIN AREA NEIGHBORHOOD BOUNDARIES ARE
2%
600'S H
igh
80 COlTYTl8rclal
2OO'S Pred. 15 Other
66 %
~ CONSIDERED COUNTY BOUNDARIES.
Neighborhood DeSCription SUBJECT PROXIMITY TO SCHOOLS CENTERS OF EMPLOYMENT AND OTHER AMENITIES ARE CONSIDERED
AVERAGE FOR THIS RURAL AREA EMPLOYMENT STABtLlTY IS CONSIDERED AVERAGE. APPEAL TO MARKET IS CONSIDERED
AVERAGE. THERE IS A VAST AMOUNT OF USFS LAND IN THIS MARKET.
Markel Condltlons Oncludlng support lor thB above conclusions)
THE CURRENT MORTGAGE MARKET OFFERS A WIDE VARIETY OF CONVENTIONAL
LOANS AT A COMPETITIVE AP.R. AS A RESULT THE TERMS OF FINANCING HAVE HAD LITTLE IF ANY INFLUENCE ON SALE PRICES tN
THIS MARKET. MARKETING TIME EXCEEDS 6 MONTHS AND IS DUE IN PART TO SEASONAL MARKET INFLUENCES.
DllTJBI1sions REFER TO DEED
ArBa 1.52AC+/Shape IRREGULAR
View GOOD/MTN
Specillc Zoning Classification NA
Zoning Descripllon NA
Zoning Co~lIance [ legal (] legal Nonconforming GrandlalherBd Use) I8l No Zoning [ Illegal (describe)
Is the highest and best use of subject properly as Improved (Dr as proposed per plans and specifications) the present use? ~ Yes [ ] No "No, describe

r

Utlitlel
Pubic Other (deICrllt)
Pubic Other (ducrlle
Off-tl. Improv.ments - TyPi
Privati
Public
]
[8J
Electricity
Water
[J
[J
[81 WELL
Stree! ASPHALT PAVED
IZI
[]
Sanitary Sewer [ ]
Gas
(J
Alley NONE
IZI SEPTIC
l J ~ PROPANE
FEMA Special Flood Hazard Area ( ] Yes [8J No FEMA Flood Zone C
FEMA Map /I 3701050050 8
FEMA Mao Date 07/17/1986
Are the utJlHles and off-sHe improvements typical for \he market area?
[8J Yas [ ] No HNo, describe
Are there any adverse sita condltlons or BXtlImallactors (easements. encroacllnenls, environmental condHions land uses, etc.)?
[ ] Yes cg:J No HYes, describe

Generli Dacript/on

Foundltlon

E1tIrIor Delcriptlon

II1I1trfIII/condttlon Interior

II1I1trfIli/cond/tfon

Units !8l One J J One with AccessolY Unit lIZ! Concrete Slab [ ] Crawl Space
Foundation Walls
CONC/AVG
Ibors
WDICPTIGD
II 01 Stories
1181 FuH Basement [ ] Partial Basement Exterior Wals
Walls
1
LOG SIDINGIAVG
DWIPT/GD
Type I:8J Del. [ ] All. ] S-DetJEnd Unit Basement Area
1408 sq.lt. Roof Surface
COMP SHGUAVG TrinYFlnlsh WD/NAT/GD
181 EJdsting [ ] Proposed [J Under Const. Basement Anish
Bath Floor
100 % GullllfS & Oownspouts ALUM/AVG
CERTILElGD
Desilln (Style)
Window Type
TRAD
11:8:1 O
utside Entry/EXll ( J Sump Pump
Bath Wainscot CER TILE/GD
WDDHlAVG
Year Bultt
Evidence 01 [J Infestation
2005
Stonm Sastvlnsulaled INSULATED
Car Storage 11 None
Effectiva Age (yrs) 5
] Da~ness [ J Settlement
Screens
NONE
~ Driveway II 01 Cars
2
Anlc
None
HeaUno I.XI FWA II I HWBB II I Radiant Amerities
Driveway Sur1ace
Woodstove(sJ II
ASPHALT
] Drop Stair
Stairs
] Other
Fence
C8j Garage
II of Cars
lFual ELECTRIC !8l Fireplace(s) II 1
1
l Floor
Coolina IXJ Central Air Conditioning
X Scuttle
Porch
] Carport
I:8J PatiG'Deck
II of Cars
] finished
Heated
] Individual
I[ ] Other
] Pool
] An.
Other
] Det.
IZI Buin·in
Appliances I8l Retrigef1ltor I:8J Range/Oven !8l Dishwasher t8J Disposal I8l Microwave [ J Washer/Olyer [] Other (describel
Finished area
grade contains:
, 408 Square feet 01 Gross l lvino Area Above Grade
6 Rooms
3 Bedrooms
2 Bath(s)
• Additional tea lUres [special eI1BfUY efficient ~ems , etc.). TYPICAL INSULATION. CEILING FANS .

.bov.

Descnbe the condition ol lha prop~ pncklding needed repairs. deterioration, f'8OOvabons rerllldeing, 8Ic.).
CONDITION OF IMPROVEMENTS RATED
AVERAGE TO GOOD . QUALI fY OF CONSTRucnON RATED AVERAGE TO GOOD. PHYSICAL DEPRECIATION WAS CHARGED BASED ON
EF FECTIVE AGE OF 5 YEARS NO FUNCTIONAL OR EXTERNAL DEPRECIATION WAS CHARGED.

Are lhere any physical defiC
iencies or adverse condHions that alfectlhe ~yabi61y . sollldness. ()( slrucflral integsily ol lhe property?
~ Yes [ ] No "Ye describe
s.
THERE IS AN ISSUE WITH THE SITE THAT COULD AFFECT THE STRUCTURAL INTEGR·ITY OF THE PROPERTY. SEE COMMENT
ADDENDA
Does

I~

property gererally conlorm 1 lhe neighborhood (funclional utility. style. conditiOn, use construction, e
0
.
tc.)1

Freddie Mac Form 70 March 2005

[gJ Yes [ ] No "No. descnbe

Page 1 of 6
Form 1004 - ·TOTAL for Windows' appraisal software by a la mode. inc

Fannie Mae Form 1004 March 2005
1·800·ALAMODE

IFile 18 PageID
Case 6:07-cv-00608-ACC-DAB Document 258-2 Filed 08/11/10 Page 6 of No 101301 Page #61 2680

Um arm ReSI'd ent'laI App ralsaIR epart
'f
~

File# 10130

to S NA
NA caf11larabla prapef1ies currenlty offered tar sale in thB subjll(;t neig/lbalhood ranging in price Iram S NA
toS NA
There are NA calTllarabla sales in ttwJ sublect nelghbortJood wllhinlhe 'pasl1w8lve months ranging in sale price from S NA
COMPARABLE SALE II 3
COMPARABLE SALE If. 1
COMPARABLE SALE 112
SUBJECT
fEATURE
195 HOLLY BERRY BRANCH
450 BEACON Hill
Address 165 KNOLL TOP RD
80 CRABAPPLE LN
MURPHY
HAYESVilLE
MURPHY
ROBBINSVilLE NC 28771
26.88 miles
Proximity to Subject
24 .01 mites
24 .36 miles
$
S
$
259000
235000
S
249500
Sale Price
140000
$
99.43 sQ.!!. $
S 190.75 sQ.",
S 163.51 sQ.tt.
Sale Price/Gross Liv. Area
177.71 S .".
Q
MLS
Data SOUfce{s)
MLS
MLS
BOOK 1379 PAGE 562
Verification Source(s)
BOOK 1387 PAGE 319
BOOK 350 PAGE 226
+(-) SAdjustment
+{-j $ Adjustment
+(-) SAdjustment
DESCRIPTION
DESCRIPTION
DESCRIPTION
DESCRIPTION
VAlUE ADJUSTMENTS
NONE
Sales or financing
NONE
NONE
NOTED
NOTED
NOTED
Concessions
-12950
0212212010
06/19/2010
07/08/2010
Date 01 Sate/Time
-5 000
-5000 GOOD
Location
-5000 GOOD
AVERAGE
GOOD
FEE SIMPLE
LeasBholdlFee Simple
FEE SIMPLE
FEE SIMPLE
FEE SIMPLE
0.74AC+/1.08AC+/1.12AC+ISite
1. 52AC+/GOOD/MTN
GOOD/MTN
View
GOOD/MTN
GOOD/MTN
TRAQ
Design (Slylej
CHALET
TRAD
CHALET
Ouality 01 ConstructiOll
AVG/GD
AVG/GD
AVG/GD
AVG/GD
Actual Age
3A2E
6A3E
5A3E
SASE
-3000
-2000 GOOD
-2000 GOOD
Condition
GOOD
AVG/GD
T 1
Dial Bdrms, 1Baths
Total Bdrms,18a1hs
Above Grade
TDIaI IBdrms.1Sallis Tmal IBdrms.1 8a1hs
4 1 1 1 1_
5
+2000 5
2 12
Room Count
51212
6 I 3 12
1 584 SQ.It.
-7920
+7920
+180
1 232 sQ," .
Gross Uving Area
1 408 sq.tt.
1404 sq.".
+5, 160
+2,640 1.064 S.F.
+7,080 1,232 S.F.
Basement & Anlshed
1,408 Sq.Ft.
936 S.F.
+4000 2-1
+6000
Rooms Below Grade
+6000 3-1
5-1
2-1
GOOD
Functional Utility
GOOD
AVERAGE
AVERAGE
Heating/CooDng
CENTRAL
CENTRAL
CENTRAL
CENTRAL
Energy Efficient Hems
TYPINSUL
TYP INSUL
TYP INSUL
TYP INSUL
Garage/Carport
-8000 ATI2 CAR GA
-8000 NONE
+4000
DET 2 CAR GA
BSMT 1 CAR
PORCH/DE'CK
PorctVPatiO/Deck
PORCH/DECK
DECK/PATIO
PORCH/DECK
1 FP
1 FP
1 FP
1 FP
• AREPlACE
-85000 NO
-85000 NO
-85000
YES
NO
'_ UNSTABLE SITE
There are

s

[ ] + 181- $
• Net Adjustment (Tolan
86740 [J+ /ZlNat Adj.
NalAdj.
Adjusted Sale Price
34.8%
35.S%
Gross Adj. 45.4" $
162760 Gross Adj. 49.6 % $
01 Comparables
I ~ . did LJ did not research the sale or transfer history of the subject property and comparable sales. II not. explain

83440

(

+

Net Adl.
151 560 GIOSS Adj.

/Zl-

S

98710

38.1 %
49.8" $

160290

r]

.P.1y research
did 181 did not reveal any prior sales or transfers 01 the subject property lor the three years prior to the effecllve date of this appraisal.
Data Source(sl PUBLIC RECORD
P.1y research [J did ~ did not reveal any prior sales or transfers at the cOlT1larable sales lor the year prior to the date 01 sale ollhe comparable sale.
Oata Source{s) PUBLIC RECORD
Reportlhe fesuns of the research and analysis olthB prior sale or transfer history 01 the subject proparty and cOlT1larable sales (repor1 additional prior sales on page 3).
COMPARABLE SALE #1
COMPARABLE SALE 12
COMPARABLE SALE 113
SUBJECT
ITEM
Date of Prior SaliVTransfer
NO PRIOR SALES WITHIN NO PRIOR SALES WITHIN NO PRIOR SALES WITHIN
05/07
Price 01 Prior Sale/Transler
12 MONTHS OF LAST
12 MONTHS OF LAST
'2 MONTHS OF LAST
$250000
Data SOlKce(s)
TRANSFER
TRANSFER
BOOK 281 PAGE 179
TRANSFER
EffecHve Date 01 Oala Source(s}
07/23/2010
07/23/2010
07/23/2010
07/23/2010
AnalYsis 01 prior sale or transfer tistory 01 the subject property and cOlT1larable sales
THE SUBJECT PROPERTY HAS NOT SOLD WITHIN THE PAST 36
MONTHS AND NONE OF THE COMPARABLES SOLD WTIHIN 12 MONTHS PRIOR TO LAST TRANSFER.

Surrrnary 01 Sales Comparison Approach LIVING AREA ADJUSTMENT BASED ON l45 sa. FT.+/-$4000 EACH BATHROOM FACILITY. BASEMENT
ADJUSTMENT BASED ON $15 sa.FT.+/-$2000 EACH FINISHED ROOM BELOW GRADE. THE 3 CLOSED SALES DISPLAYED WERE
CONSIDERED THE MOST COMPARABLE. DATE OF SALEITIME ADJUSTMENT FOR SALE # 3 REFLECTS MARKET CHANGE SINCE DATE
OF SALE_THE ADJUSTMENT FOR THE UNSTABLE SITE IS BASED ON ESTIMATE OF COST TO CURE SITE PROBLEMS.

looicaled Value by Sales Companson Apjlroach S 158 000
Indlclttd VI. by: Sales Compl_rllOn Approach S 158000

.

Call Approach (if developed) S 222 415

Income Approach (if developed) S

o

subject to completion per plans and specifications on the basis of a hypothetical condition lnal the improvements have been
Tt'fs appraisal is made ~ 'as is'.
LJ subject 10 the folloWing repairs or atterations on lhe basis 01 a hypothetical coooilion that the repaJrs or anerations have been completed. or subject to lhe
• toUowillQ required inspec1Jon basad on the exlraordlllary assumpUon thai the corxlition or defiCiency does nol require atteration or repair:
co~leted.

Based on a c.omplete visual Inspection of the Interior and el1erior areal of the subject properlt, defined scope of work, slltement of assumptions and timitlng
condillon., and appraiset"1 certiflCillon, my (our) opinion of Ihe mar1!et vaillt, is defined, of he real property Ihlt is the subject of this report is
alOl
07/23/20 t 0
which II the dlle of inspection and the effectIve date 01 this appraisll.
S 158.000

Freddie Mac Form 70 March 2005

Page 2 of 6
Form 1004 - 'TOTAL for Windows' appraisal software by a la mode,

Fannie Mae Form 1004 March 2005
inC.

1-800-ALAMODE

IFile 18 PageID
Case 6:07-cv-00608-ACC-DAB Document 258-2 Filed 08/11/10 Page 7 of No 101301 Page #71 2681

f
U ifarm ReSI·d enlaIAIppralsaIR epart
n

File # 10130

COMPARABLE SALES OVER ONE MILE AWAY
-COMPARABlE SALES OVER ONE MILE DISTANT FROM mE SUBJECT ARE OFTEN USED BECAUSE THEY ARE THE BEST AVAILABLE IN
THIS RURAL MOUNTAIN AREA. EXPANDING THE SEARCH TO A RADIUS GREATER THAN ONE MILE STILL DEVELOPS SALES WHICH
ARE IN THE SAME MARKET AREA AS THE SUBJECT PROPERTY. USING COMPARABLE SALES WITHIN THE SAME COUNTY AND MANY
TIMES SEARCHING OUTSIDE TH ADJOINING COUNTIES DEVELOPS GOOD COMPARABLE SALES.
PRIVATE WELLS SPRINGS SEPTIC SYSTEMS
IN THIS RURAL MOUNTAIN AREA PRIVATE WATER SYSTEMS AND PRIVATE SEPTIC SYSTEMS ARE TYPICAL AND MEET STATE CODES.
THE USE OF THESE SYSTEMS IN THIS AREA DO NOT ADVERSELY AFFECT MARKET VALUE.
PRIVATE ACCESS ROADS AND SUBDIVISON ROADS
IN THIS RURAL MOUNTAIN AREA, MOST SUBDIVISION ROADS ARE PRIVATE AND IN MANY CASES ARE GRAVEL BASED ROADS. THIS
TYPE ROAD IS COMMON AND DOES NOT ADVERSELY AFFECT THE VALUE OF THESES PROPERTIES WHEN WELL MAINTAINED. THE
GENERAL TREND IS TOWARD MORE PAVED ACCESS ROADS.
THE SUBJECT REAL ESTATE MARKET HAS SEEN A SIGNIFICANT DECREASE IN SALES ACTIVITY OVER THE PAST 44 MONTHS. THE
NAR REPORT FOR THIS MARKET INDICATES AS 36 MONTH SUPPLY OF SINGLE FAMILY HOMES LISTED WITH AN AVERAGE
MARKETING TIMIE OF 232 DAYS. THE SUBJECT MARKET IS PRIMARILY A SECOND HOME/RETIREMENT HOME MARKET WITH THE
• MAJORITY OF THE BUYERS COMING FROM THE FLORIDA AND GEORGIA METROPOLITAN AREAS. PROPERTY VALUES TYPICALLY
I!! INCREASED FROM YEAR TO YEAR IN THIS MARKET. AS INVENTORIES BUILT VALUES BECAMES STABLE AND ARE CURRENTLY
§ DECLINING.

~

: ZONING: THERE IS NO ZONING IN THIS RURAL MOUNTAIN AREA WITH THE EXCEPTION OF PROPERTIES LOCATED INSIDE TOWN
LIMITS. IF THE SUBJECT STRUCTUE IS DESTROYED IT CAN BE REBUILT AS IT CURRENTLY EXISTS.
GRAHAM COUNTY IS THE MOST RURAL COUNTY IN THIS MARKET AND HAS THE FEWEST NUMBER OF SALES. THE SALES USED IN
THIS REPORT ARE SIMILAR TYPE PROPERTIES IN NEIGHBORING CHEROKEE AND CLAY COUNTIES. THE SALES USED ARE IN
SUBDIVISIONS THAT ARE WELL DEVELOPED. THAT IS THE REASON FOR THE LOCATION ADJUSTMENT. IN THE APPRAISER'S
OPINION THESE ARE THE MOST RECENT SALES THAT ARE COMPARABLE TO THE SUBJECT PROPERTY.

,

COST APPROACH TO VALUE(nOt lICIulnd by Fannie MIl)

'. '

Provide adequate information for tl'8 lender/cllenllo repUcatethe below cost ligures and calculations.
Support for the opinion of sne value (sunmary 01 comparable land sales or other methods for estimatirY;! sU value)
e

ANAL YSIS OF LAND SAlES IN THE SUBJECT

MARKET AREA.

ESTIMATED [] REPRODUCTION OR IZI REPlACEMENT COST NEW
Source of cost data MARSHAlL AND SWIFT RESIDENTIAL COST HB
QuaHty ratirY;!lrom cosl seNiee AV/GD Effective date 01 cost data 12-09
Comments on Cost Approach (gross livina area calculaUons. depreciation, 8IC.)

·

OPINION OF SITE VALUE .. __ .. ....
._
DWElliNG
1408 50.Ft.@$
1408 5o.Ft.@$

AS IS VALUE OF IMPROVEMENTS INCLUDE WATER SEPTIC
LANDSCAPING AND DRIVEWAYS.

Garaaw'C arport
5a.Ft.@$
Total Estimate at Cost-New
less
PhYsical
IFunctional
1External
:::$(
Dejlreciation
161221
I
Depreciated Cost of IlT1Irovemenls ....•.... _. ......... _.......•-.........•-. =$
·As·is· Value 01 Sile Ill1Irovemenls ..... --._ _..... _...... _
.-...
......... =$

Estimated Remaining Econonic lHe (HUD and VA only)

_ _ • • • • • __

.n~

DECK/PATIO

._-. .--.................- =$
97.56 _ .
__
=$
36 .35 ............. =$
_ -.... =$
......
_ ---- =$
.............. =$

55 Years INDICATED YAWE BY COST APPROACH ...................................... ____. =S
_

25000
137364
51 181
4992
193537
16122)
177 415
20000
222415

INCOME APPROACH TO VALUE (nGi required by Fannie"',
X Gross AenI Muftlplier
• Estimated Monthly Maltel Aent $
SUlTITlaty of Income Approach (inckJding sUPJXlrtlor malUt rent and GRM)

=$

Indicated Value by Income Approach

INCOME APPROACH NOT APPLICABLE

PfIOJECT INFORMA11)N FOR Pm. (It 1PPI1cIbIe)
Is \he developer/bIJilder in co~rul altha Homeowners' Association (HOA)? [J Yes [] No
UrVt type(s} [] DBlached [ ] Anached
Provide '/Wlollowi. g information lor PUOs Ort. Y~ tile developeflbtlkler is In control althe HOA and !he subject Pfoperty is an attached <!weling um.
n
leQai Name of PmJ8Ct THE SUBJECT IS NOT A PUD
T number oIlt11ts
oral
T rlJIWef 01 urnls sold
olal
• Total f'IUfm&f of pha ses
Total number of urits rented
Totaf llUtmer of units lor sale
Data soUlte(s}
Was 1/18 project created by !he COrNerslon of existing buildina!s) Into a POO? [ ] Yes L] No II Yas, dala 01 C011Y8fSion.
~ Does lhe~ contain any roo/1i·dwe~units?
[ 1 Ves .[ 1No Data Source
E; Are the units. common elements. and recreation lacll~ies complale?
r ] Ves [ J No nNo. describe the stabJs 01 cOfl1jletion.

·

Ar8tha CO!TlTlOfl elements leased to or by the HOf'*Iwners' Association?

[ ] Ves [] No

nYes, describe !he rerialtenns and options.

Oescnbe corrmon elements and recreanonaJ lacll ties.
Freddie Mac Form 70 March 2005

Page 3 at 6
Form 1004

'TOTAL for Windows· appraisal software by a la mode, inc. - 1·8oo·AlAMODE

Fannie Mae Form 1004 March 2005