STATE OF CALIFORNIA — DEPARTMENT OF REAL ESTATE — SUBDIVISIONS NOTICE OF INTENTION (TIME-SHARE) RE 668A (Rev. 6/05) FOR DRE USE ONLY INSTRUCTIONS This Notice of Intention is only for specific time-share interests in single-site or multi-site time-share plans. Please read RE 668 before completing this form. RE 668A is one of the forms required for a time-share plan public report unless the time-share plan offering is a nonspecific time-share interest in a multi-site time-share plan as defined in Section 11212(z)(2)(B) of the California Business and Professions (B&P) Code. A public report must be obtained by the developer before offering for sale or lease in California any interest(s) in a time-share plan, as those terms are defined in Section 11212(z) B&P Code. A separate RE 668B must be completed and fee paid for offerings of a nonspecific interest in a multi-site time-share plan not currently covered by a California public report/permit. Submit this package and one photocopy of page 1. Attach filing fee to the photocopy. Please read Notice of Appeal Process on last page. USE OF MASTER FILE If you are submitting the first phase/location of a multiplephased time-share plan, you may elect to designate this application 1. A. FILE NUMBER AMOUNT REQUIRED $ AMOUNT RECEIVED $ REFUND AMOUNT $ AMT TRANSFERRED FOR INTERESTS $ FROM FILE # as a “Master File” for the subsequent applications. By this means you may use certain documentation contained in the Master File to serve in subsequent applications without having to re-submit the same item. If you are submitting an application for a subsequent phase of the time-share plan, certain documents submitted with the Master File are not required. Refer to item name for “Master File Item” phrase. GENERAL INFORMATION TYPE OF APPLICATION (CHECK ALL APPLICABLE) E. SINGLE RESPONSIBILITY PARTY (SRP) — CONTACT PERSON FINAL PUBLIC REPORT CONDITIONAL PUBLIC REPORT B. BUSINESS ADDRESS THIS APPLICATION IS BEING SUBMITTED AS: (CHECK ONE) SINGLE PHASE TS PLAN MULTI-PHASE TS PLAN CITY STATE SUBSEQUENT PHASE OF AN EXISTING TS PLAN MASTER FILE # (IF APPLICABLE) ZIP CODE C. WHEN PUBLIC REPORT IS READY: MAIL TO SRP D. COUNTRY TELEPHONE NO. (INCLUDE AREA CODE) CALL SRP FOR PICK UP DEVELOPER INFORMATION — NAME F. ATTORNEY FOR DEVELOPER BUSINESS ADDRESS DEVELOPER’S ASSUMED NAME (IF APPLICABLE) CITY STATE BUSINESS ADDRESS ZIP CODE CITY COUNTRY STATE TELEPHONE NO. (INCLUDE AREA CODE) ZIP CODE COUNTRY G. TIME-SHARE ASSOCIATION BUDGET PREPARER TELEPHONE NO. (INCLUDE AREA CODE) BUSINESS ADDRESS MAILING ADDRESS (IF DIFFERENT) CITY STATE BUSINESS ADDRESS ZIP CODE CITY COUNTRY STATE TELEPHONE NO. (INCLUDE AREA CODE) ZIP CODE COUNTRY American LegalNet, Inc. www.FormsWorkflow.com H. Is the offering a “single site time-share plan” with right to use accommodations at a singe timeshare property as defined in B&P Codes Section 11212(z)(1)? .............................................. I. Will the offering consist of a specific time-share interest in a multi-site time-share plan as defined in B&P Code Section 11212(z)(2)(A) that will be affiliated with component sites under a contractual or membership program through a reservation system at the time the public report is issued? .................................................................................................................................. Yes No Yes No Yes No Yes No If YES, please answer the following question: 1. Will the purchaser receive a priority right of not less than 60 days to reserve accommodations at that specific time-share property without competing with other owners of time-share interests at other time-share properties that are part of the multi-site time-share plan? ... If NO to I1, the offering will not qualify as a specific time-share interest in a multi-site timeshare plan, but may be filed as a nonspecific interest in a multi-site time-share plan. 2. If the offering qualifies as a specific time-share interest in a multi-site time-share plan, provide signed certification on a separate sheet that: a. b. J. A purchaser has contractual or membership rights to use accommodations at each affiliated site, and that if an accommodation is or may become subject to a blanket encumbrance, that the blanket encumbrance is or will be subordinate to these rights. Adequate provisions exist for completion of all promised improvements for such accommodations. Is the offering a “single-site time-share plan” as defined in B&P Code Section 11212(z)(1) that at the time the public report is issued presently intended to be converted to a multi-site time-share plan which includes a specific time-share interest as defined in Section 11212(z) in the future? If YES, the public report must be amended at the time of the conversion to implement the material change in compliance with B&P Code Section 11226(F). K. Interests to be conveyed (Please check the applicable boxes.) “Time-share estate” as defined in B&P Code Section 11212(x)(1) “Time-share use” as defined in B&P Code Section 11212(x)(2) Annual uses Biennial uses Fixed accommodation, fixed time Variable accommodation, fixed time Fixed accommodation, variable time Variable accommodation, variable time Points/symbol system (See K4 below.) 1. For all offerings, please state: • The amount of annual time to be sold per accommodation, in terms of seven-day use increments or other time increments. ......................................................................... ________________________ Total number of annual time-share interests (number of time-share interests per accommodation multiplied by total number of accommodations dedicated to the timeshare plan). ................................................................................................................. ________________________ • Number of biennial time-share interests per accommodation. .................................. ________________________ • Total number of biennial time-share interests (number of biennial interests per accommodation multiplied by total number of accommodations dedicated to the timeshare plan). ................................................................................................................. ________________________ The amount of annual time to be reserved to the association for maintenance. ........ ________________________ • • RE 668A American LegalNet, Inc. www.FormsWorkflow.com Page 2 of 29 2. On a separate attachment provide a description of the duration and operation of the timeshare plan. 3. For time-share plans that include the sale of points or other symbols other than time, please provide a narrative explanation of the point/symbol to be offered for sale and include the following information and documentation. a. Whether additional points may be acquired by purchase or otherwise, in the future and the manner in which future purchases of points may be made. b. The transferability of points to other persons, other years or other time-share plans. c. A copy of the then-current point value use directory, along with rules and procedures for changes by the developer or the association in the manner in which point values may be used. d. Any limitations or restrictions upon the use of point values. e. A description of an inventory control system that will ensure compliance with Section 12250. L. Time-share interests covered by this application and specific property information: 1. Number of time-share interests to be dedicated to the time-share plan with this application. ________________________ 2. Number of accommodations to be dedicated to time-share use with this application. ..... ________________________ 3. Submit the following documents (if applicable): • Location map; • Recorded maps, including tract maps, condominium maps, and condominium plans of the property in which the accommodations are located; • Plot plans; showing the foot prints of all improvements included in the offering; • Floor plans (only if budget review requested). 4. Location Information REAL PROPERTY LEGAL DESCRIPTION LOCATION ADDRESS CITY STATE COUNTY COUNTRY ADVERTISING NAME a. Is the time-share property located within the city limits? .......................................... Yes No If NO, list the name of nearest city/town and the distance and direction from city/town to the time-share property. _______________________________________________________________________________________________________ _______________________________________________________________________________________________________ _______________________________________________________________________________________________________ RE 668A American LegalNet, Inc. www.FormsWorkflow.com Page 3 of 29 5. The time-share accommodations will be housed as follows: A new structure built exclusively for time-share purposes. ............................................. Yes No A new structure built for time-share use, and commercial or other uses (i.e. hotel, motel, apartments, etc.). ........................................................................................................ Yes No An existing structure that will be converted entirely to time-share use. ........................... Yes No A portion of an existing structure in which a portion of the structure will be devoted to commercial or other uses. .......................................................................................... Yes No An existing condominium subdivision to be converted partially or entirely to time-share use. ............................................................................................................................. Yes No A condominium subdivision to be constructed. ............................................................... Yes No Other ................................................................................................................................. Yes (explain) _______________________________________________________________________________________________________ _______________________________________________________________________________________________________ a. Will the time-share property share a structure with a hotel, motel, or another use other than time-share? ......................................................................................................... Yes No If YES, explain. _______________________________________________________________________________________________________ _______________________________________________________________________________________________________ 6. a. Yes No Yes Are the accommodations to be subdivided from a portion of another subdivision? No If YES, complete the following: NAME OF SUBDIVISION (FROM RECORDED MAP) TRACT NUMBER (FROM RECORDED MAP) TYPE OF SUBDIVISION (E.G., CONDO, PLANNED DEVELOPMENT, TIME-SHARE, ETC.) ADVERTISING NAME b. Are the accommodations located in a subdivision on which a California public report has been issued? ........................................................................................................ If NO, submit the following documentation in compliance with Regulation 2809.1(b). 1) Proposed or existing governing instruments for the common interest subdivision. 2) Copies of all contracts or proposed contracts obligating the owners’ association of the common interest subdivision if the subdivision is one for which a public report has not been issued. 3) If included in the subdivision offering, a copy of the agreement of the developer to subsidize maintenance and operations of the common interest subdivision if a public report has not been issued for the subdivision. RE 668A American LegalNet, Inc. www.FormsWorkflow.com Page 4 of 29 4) Financial arrangements to assure performance of the subsidization agreement referred to in (3) above if applicable. 5) Latest balance sheet and annual operating statement for the owners’ association for the common interest subdivision. 6) Pro forma budget reflecting estimated ownership, maintenance and operational expenses and reserves for the subdivision. 7) Financial arrangements to assure fulfillment of developer’s obligation to pay assessments for unsold time-share interests if public report has not been issued for the subdivision. 8) Copy of letters by which the developer has given notice of the proposed dedication of an accommodation to a time-share project to the owners’ association of each common interest subdivision in which an accommodation of the time-share project is located. 9) Evidence of financial, arrangements for completion of common areas and facilities in the subdivision. c. Is the time-share project located within a condominium or other common interest subdivision whose governing instruments prohibit the dedication of units to timesharing either absolutely or conditionally? ................................................................ Yes No If YES, explain. _______________________________________________________________________________________________________ _______________________________________________________________________________________________________ _______________________________________________________________________________________________________ If YES, has the underlying common interest subdivision instituted any action to restrict the use of facilities or regulate time-sharing through enforcement or other legal proceedings? .............................................................................................................. Yes No 7. Describe the residential structures (i.e., the number of buildings, number of stories, etc.): _______________________________________________________________________________________________________ _______________________________________________________________________________________________________ _______________________________________________________________________________________________________ _______________________________________________________________________________________________________ _______________________________________________________________________________________________________ 8. Will the time-share units share any facilities with any commercial development? .......... Yes No If YES, provide the following information on a separate attachment: a. b. Submit a plot plan identifying the time-share units, commercial and/or residential units, and the shared facilities. c. RE 668A Describe the shared facilities (e.g., condo or hotel building, pools, landscaping, parking, etc.). If applicable, submit a proposed contract that includes the following: American LegalNet, Inc. www.FormsWorkflow.com Page 5 of 29 1) Arrangements for temporary use for transient occupancy of accommodations comprising the time-share plan and temporary use by the time-share plan of accommodations regularly used for transient occupancy. 2) Apportionment of the costs of operation of the hotel/motel that are for the joint benefit of accommodations in the time-share plan and accommodations for transient occupancy. 9. List below the number and type of accommodations that will be dedicated to time-share use at this location. (The total should agree with the response to 1K2 above.) • On those maps/plans submitted which delineate dwelling units, outline in red or yellow ink all units covered by this application. # OF UNITS UNIT TYPE SQUARE FEET (PER UNIT) 3 bedroom 2 bedroom 1 bedroom studio other total 10. Please list the number and type of non time-share units at this location. # OF UNITS UNIT TYPE SQUARE FEET (PER UNIT) 3 bedroom 2 bedroom 1 bedroom studio other total M. Phasing Information — Will there be future dedications (phases) of units for time-share use? a. Yes No The application is for: Check one box only. Enter 1st, 2nd, 3rd, etc., and 1, 2, 3, etc., as appropriate in the spaces provided. Do not include information on component sites of a single-site time-share project. 1) This is a single location, single site time-share plan. 2) This is a single site time-share plan with multiple phases to be located on a single lot. This is the _____ phase of a ____phase project. 3) This is a single site time-share plan to be located on multiple lots within one subdivision map. This is the ____ phase consisting of _____ lot(s) of a ____ phased time-share plan. RE 668A American LegalNet, Inc. www.FormsWorkflow.com Page 6 of 29 4) This is a single site time-share that will be made up of multiple subdivision maps. This is the ______ phase consisting of _____ lot(s) located in the ______ map of _______ maps. 5) This is a multi-site time-share plan which includes a specific time-share interest in a single property and is a single phase time-share plan. 6) This is a multi-site time-share plan which includes a specific time-share interest in a single property. This is the ____ phase of a ____ phase time-share plan. 7) This is a multi-site time-share plan which includes a specific time-share interest in a single property. This is the ____ phase consisting of _____ lot(s) or accommodation located in the ____ map of ____ maps. 8) This is a multi-site time-share plan which includes a specific time-share interest in a single property. This is the ____ phase consisting of _____ lot(s) or accommodation of a ____ phased time-share plan. b. If YES to 2–5 above, answer the following questions: 1) What is the total number of time-share interests to be included in the overall time-share property? .................................................................................................................... _______________________ 2) What is the total number of accommodations to be included in the overall time-share property? .................................................................................................................... _______________________ 3) How many time-share interests are included in the time-share property to date? ..... _______________________ 4) How many accommodations are included in the time-share property to date? ......... ________________________ 5) List the interval identification numbers, accommodation numbers and common area lot/accommodation numbers for each phase or attach an exhibit that includes this information. DRE File Number RE 668A Tract Number Phase Interval ID numbers Lot/Unit Number(s) Common Area Lot #s/Letters American LegalNet, Inc. www.FormsWorkflow.com Page 7 of 29 2. DEVELOPER STATUS [Master File Item] Yes No If NO, was an irrevocable consent (or appropriate RE 608) submitted under a previous filing designated as a Master File? ............................................................................................. Yes No a. Yes No Yes No If NO, was a Certificate of Status submitted under a previous filing designated as a Master File? .................................................................................................................................. Yes No a. Yes No Yes No Yes No Yes No A. Is developer a California resident? .......................................................................................... If nonresident of California, an irrevocable consent that if any action is commenced against the developer in the State of California and personal service of process upon the entity or individual cannot be made in this State, a valid service may be made by delivering the Consent to Service of Process (RE 608) to the California Secretary of State. 1. If YES, have there been any changes to the irrevocable consent? ............................ If NO, it is not necessary to submit another copy. b. If NO to A1 above, or YES to A1a above, submit an irrevocable consent (an original and one copy of the appropriate RE 608). B. Is the developer a corporation or limited liability company organized under the laws of a state other than California? .............................................................................................................. 1. If YES, have there been any changes to the document? ............................................ If NO, it is not necessary to submit another copy. b. If NO to B1 or YES to B1a, submit a Certificate of Status for the foreign entity to transact business in California, issued by the Secretary of State. C. Is developer a partnership or joint venture? ............................................................................. If YES, submit names and addresses of the members. D. Is developer a corporation or limited liability company? ........................................................ If YES, submit a copy of the resolution of its board of directors/members authorizing the filing of the questionnaire. E. Will anyone besides the developer be executing any documents on behalf of the developer in connection with this filing? ...................................................................................................... If YES, submit a copy of the power of attorney, or a copy of the delegation of authority signed by the developer indicating who may sign on its behalf. 3. LOCATION OF SALES RECORDS NAME OF CUSTODIAN TELEPHONE NUMBER ADDRESS CITY COUNTY RE 668A STATE ZIP CODE American LegalNet, Inc. www.FormsWorkflow.com Page 8 of 29 4. CONDITIONAL PUBLIC REPORT/PERMIT A. Are you requesting a conditional public report/permit? (B&P Code Section 11227(b).) ....... Yes No If YES, B&P Code Section 11227(f) requires that a developer, principal, or his or her agent shall provide a prospective purchaser with a copy of the conditional report and a written statement which includes all of the following: 1. 2. 3. 4. Specification of the information required for issuance of a public report. Specification of the information required in the final public report which is not available in the conditional public report, along with a statement of the reasons why that information is not available at the time of issuance of the conditional public report. A statement that no person acting as a principal or agent shall sell or lease or offer for sale or lease time-share interests in a time-share plan in a subdivision for which a conditional public report has been issued except as provided in this article. Specification of the requirements of B&P Code Section 11227(e). Submit a copy of the proposed statement. B. If you are requesting a conditional public report, provide the name and address of the neutral escrow depository where all purchase money will be impounded, pursuant to B&P Code Section 11243, until such time as the final public report is furnished to the purchaser. NAME CODE SECTION (CHECK ONE) 11013.2(A) 11013.4(A) ADDRESS (POST OFFICE BOXES ARE NOT ACCEPTABLE) CITY 5. STATE ZIP CODE ADVERTISING AND PROMOTION Indicate which of the following inducements or representations will be made in the advertising and marketing of time-share interests. If the answer to any of the following questions is “yes,” submit complete details concerning the programs. A. Money back guarantee or repurchase warranty? ..................................................................... Yes No B. Construction or equipment guarantees, including guarantees to repair latent construction defects, beyond manufacturer’s warranty? .............................................................................. Yes No C. Gift, free trip, discounted purchase price or similar promotional device? .............................. Yes No D. Program or arrangements for resale by purchasers of subdivision interests? .......................... Yes No E. Program or plan for leasing or renting of subdivision interests on behalf of non-occupying owners? .................................................................................................................................... Yes No F. Membership in club or association other than: 1) homeowners’ association, 2) an exchange program listed in response to item 1J1 above, or 3) membership which is an incidental benefit listed in response to item 1J3 above? ....................................................................................... Yes No G. The use or availability for use of commercial or recreational facilities, whether within or outside the boundaries of the subdivision (other than an exchange program or incidental benefit), which will be owned or controlled by an association of interest owners? ......................................... Yes No If YES, furnish complete details by attaching RE 624A. RE 668A American LegalNet, Inc. www.FormsWorkflow.com Page 9 of 29 H. Will your sales program include representations in regard to the use of recreational areas and/ or facilities which are not owned by the association of owners (excluding benefits due to exchange programs and incidental benefits)? .......................................................................... Yes No Yes No Yes No Yes No Yes No Yes No If YES, attach an explanation of the conditions of use, such as memberships, conditions and fees, or other charges. Note: All advertising must conform to Commissioner’s Regulation 2811 and California B&P Code Sections 17537–17539. Also, insofar as applicable, it must conform to the provisions of Regulation 2848. 6. TITLE/MINERAL RIGHTS A. Submit preliminary report dated not more than 90 days prior to submission of this application, signed by an authorized employee of the title company, or a title policy, that shows true condition of title for this time-share plan. If preliminary report is over 90 days old, submit a letter from the title officer, dated not more than 90 days from the date the preliminary report indicating state of title has not changed from that set forth in the submitted preliminary report. 1. Is the developer presently in title? .................................................................................... If NO, submit evidence of future vesting (e.g., certified purchase escrow instructions citing a specific date when escrow is to close, option agreement, etc.) or an enforceable option or contract wherein the developer will build, purchase, or lease the accommodations. Note: Prior to issuance of a final public report, evidence must be presented demonstrating that the accommodation(s) is owned or leased by the developer free and clear of blanket encumbrances in accordance with B&P Code Sections 11244 or 11255. B. Is the developer/time-share plan subject to any bankruptcies, pending civil or criminal suits, adjudications, or disciplinary actions of which the developer has knowledge, that would have a material effect on the developer’s ability to perform its obligations. ................................... If YES, provide a description of any such actions on a separate attachment. C. Provide on a separate attachment, a description of any liens, defects, or encumbrances on or affecting title to the time-share interest. 7. COASTAL ZONE A. Is the project within the California coastal zone? .................................................................... If YES, provide evidence of Coastal commission approval of the developer’s intent to dedicate accommodations to time-sharing. 8. USE, ZONING, HAZARDS A. Is the single site time-share plan or the property in which specific time-share interests will be offered located within a governmental jurisdiction and/or a real property subdivision in which the dedication of accommodations to time sharing is expressly prohibited, either absolutely or conditionally without a permit or other entitlement? ............................................................... If YES, provide a copy of the permit or other entitlement from the appropriate government agency. B. Has a request been made to the Department of Corporations of the State of California for a permit or interpretive opinion on this project? .................................................................................... If YES, supply a copy of the permit, opinion, or the application on file if filing is still active. RE 668A American LegalNet, Inc. www.FormsWorkflow.com Page 10 of 29 C. Out of State Offerings Only 1. Filing or registration of offering a. b. Does the state in which the time-share property is located require a filing or registration of your offering? ........................................................................................................ Yes No Does the country in which the time-share property is located require a filing or registration of your offering? ..................................................................................... Yes No Yes No Yes No Yes No If YES to a or b above, submit a copy of any public report or other disclosure document authorizing the sale of time-share interests in the time-share plan. D. 1. Is the time-share plan property located in California? ...................................................... If YES, submit a completed RE 619 (Natural Hazard Supplemental Questionnaire). If NO, go to Item 9 (Utilities and Services). 2. Does the subject property include residential structures built prior to 1978 (do not include properties sold at a foreclosure sale or housing designated for the elderly? .................... a. 3. If YES, pursuant to federal Real Estate Disclosure and Notification Rule (24 CFR Part 35 and 40 CFR Part 745), the seller is required to disclose to prospective buyers that this property may contain lead-based paint and/or lead-based paint hazards as well as provide certain written materials as mandated by current law. The seller is required to offer all prospective buyers an opportunity to conduct a risk assessment for lead-based paint and lead-based paint hazards prior to being obligated under a purchase contract. This risk assessment may be waived by written agreement between buyer and seller. For more information, you should contact the local office of the Environmental Protection Agency. Is the property within an “airport influence area,” also known as an “airport referral area,” related to the airport(s) stated above, as determined by an airport land use commission? If YES, the following statement shall be included in the public report: Notice of Airport in Vicinity This property is presently located in the vicinity of an airport, within what is known as an airport influence area. For that reason, the property may be subject to some of the annoyances or inconveniences associated with proximity to airport operations (for example: noise, vibration, or odors). Individual sensitivities to those annoyances can vary from person to person. You may wish to consider what airport annoyances, if any, are associated with the property before you complete your purchase and determine whether they are acceptable to you. 9. UTILITIES AND SERVICES A. Submit evidence of availability of the following utilities and services to the project. 1. 2. 3. 4. 5. 6. RE 668A Fire protection Sewage disposal Water (for fire and normal use) Natural gas (if applicable) Electricity Telephone American LegalNet, Inc. www.FormsWorkflow.com Page 11 of 29 10. OFF-SITE IMPROVEMENTS. A. Describe all off-site improvements included in the offering such as streets, easements, drainage, sewer, etc.: _______________________________________________________________________________________________________ _______________________________________________________________________________________________________ _______________________________________________________________________________________________________ B. Will completion of off-site improvements be covered by an agreement with the local governing body secured by a bond, cash deposit, or instrument of credit? .............................................. 1. No Yes No If YES, submit the agreement(s) and copy of the bond(s), instrument(s) of credit, or evidence(s) of cash deposit, (unless city or county has a current master geographic letter from a California city or county on file with the Department of Real Estate). 2. Yes If NO, the applicant must submit evidence that adequate financial arrangements have been made for all off-site improvements included in the offering or evidence of completion. C. Is there a lien upon the subdivision or any part thereof which was incurred to pay for the construction of any off-site improvement which will remain after interests are sold? ............ $____________________ If YES, list the amount of indebtedness. ................................................................................. 11. SPECIAL DISTRICTS AND SPECIAL ASSESSMENT DISTRICTS Regulation 2809.1(a)(30) requires you to submit information regarding state or local assessments and improvement bonds. This concerns the indebtedness which has been or is proposed to be incurred by an existing or proposed special district, or assessment district within the boundaries of which the time-share property or any part thereof is located, and which is to pay for the construction or installation of any improvement or to furnish community or recreational facilities to such timeshare property and which amounts are to be obtained by ad valorem tax or assessment, or by special assessment or tax upon the subdivision, or any part thereof. It is the intention of this question to obtain information about any taxes or assessments which will add materially to the basic tax rate. This question covers special districts which will provide off-site improvements, utility and maintenance services such as water, sewer, lights, streets, drainage, etc. For example, this applies to county water districts and sanitation districts. This question also covers special assessment districts formed, or to be formed, for the purpose of financing, acquiring, constructing, maintaining or operating such off-site improvements. A. Will the subdivision or any part thereof be within any district described above? ................... Yes No Yes No If YES, submit a complete RE 624C for each such district. 12. STREETS AND ROADS A. Is access street all weather surfaced? ....................................................................................... If NO, describe surface and condition. _______________________________________________________________________________________________________ _______________________________________________________________________________________________________ _______________________________________________________________________________________________________ RE 668A American LegalNet, Inc. www.FormsWorkflow.com Page 12 of 29 B. 1. Yes Is access street into subdivision a public street? ............................................................... No If NO, describe and submit documentation evidencing the legal right interest owners will have to use the access street(s) (i.e., easement, etc.). Please identify the access street on map submitted with application. _______________________________________________________________________________________________________ _______________________________________________________________________________________________________ _______________________________________________________________________________________________________ Yes No Have they been or will they be constructed to county/city standards for this type of subdivision? ...................................................................................................................... Yes No Will streets within project be offered for dedication for public use? ............................... Yes No If YES, will offer of dedication be accepted? .................................................................. Yes No C. Are there or will there be streets within the project? ............................................................... If NO, go to item 13. If YES, complete the following. 1. 2. If NO, describe interest owners right of ingress and egress over streets within tract. _______________________________________________________________________________________________________ _______________________________________________________________________________________________________ _______________________________________________________________________________________________________ Have streets within project already been accepted for public maintenance? ................... Yes a. 3. Yes No Unknown If NO, will streets be accepted for public maintenance in the future? ...................... No If NO or unknown at this time, explain under what circumstances, if any, they may be accepted in the future. _______________________________________________________________________________________________________ _______________________________________________________________________________________________________ _______________________________________________________________________________________________________ 4. Yes Are streets completed? ...................................................................................................... a. No If NO, what is the present state of improvement of the streets within the tract (not graded, presently graded, asphalt)? _______________________________________________________________________________________________________ _______________________________________________________________________________________________________ _______________________________________________________________________________________________________ RE 668A American LegalNet, Inc. www.FormsWorkflow.com Page 13 of 29 1) If this is a California project, is there a master geographic letter on file with DRE covering street completion? ................................................................................ Yes No Yes No Yes No D. If not accepted for public maintenance, will a road maintenance agreement be prepared? .... Yes No If YES, will it be part of the covenants, conditions, and restrictions (CC&Rs)? .................... Yes No Is this a time-share plan offering time-share use interests? .............................................. Yes No If YES, will the accommodations be free and clear of blanket encumbrances? .............. Yes No If NO, submit evidence showing that streets will be completed. 2) Is this project located outside of California? ..................................................... If YES, submit evidence showing that streets within the time-share property will be completed. 5. Is your answer to item C3 and C4 above NO? ................................................................. If YES, submit a letter from an engineer who is registered in the state in which the project is located listing the standards (width, surfacing, etc.) to which roads will be constructed and giving an estimate of annual cost per linear foot for maintaining them. If NO, submit a copy of proposed road maintenance agreement. 13. PURCHASE MONEY HANDLING A. 1. a. If YES, the accommodations must be conveyed to a trustee or association acceptable to the Commissioner prior to close of escrow for the first sale of a time-share interest. Submit a copy of the trust agreement or document (not covered under Regulation 2809.1) for the conveyance of accommodations to the association in compliance with B&P Code Section 11255. b. If NO, submit trust agreement in compliance with B&P Code Section 11255. NAME OF TRUSTEE TELEPHONE NUMBER ADDRESS B. 1. Will the time-share property be completed and will it be free and clear of any liens and blanket encumbrances at the time a public report is issued? ............................................ Yes No If YES, all purchase monies must be impounded into an acceptable escrow depository or, in lieu of an escrow impound, the commissioner may accept a bond or other financial assurance in accordance with B&P Code Section 11243(c) until the expiration of the rescission period. If NO, all purchase monies must be impounded into an acceptable escrow depository or, in lieu of an escrow impound, the commissioner may accept a bond or other financial assurance in accordance with B&P Code Section 11243(c) until both the improvements are completed in compliance with B&P Code Section 11243(b) and the time-share interests can be conveyed free and clear of any liens and blanket encumbrances or alternative arrangements are made under B&P Code Section 11244(a). 2. RE 668A All purchase monies will be impounded in the following escrow account in accordance with B&P Code Section 11243(a) [Regulation 2809.1(a)(23)]. American LegalNet, Inc. www.FormsWorkflow.com Page 14 of 29 NAME ADDRESS (POST OFFICE BOXES ARE NOT ACCEPTABLE) CITY STATE 3. ZIP CODE Will a bond (RE 600K) to the State of California in the amount of $____________ be furnished to the Real Estate Commissioner pursuant to B&P Code Section 11243(c). ... a) Yes No Yes No If YES, submit original of security and instructions to depository (RE 600F). If RE 600K (bond) is on file, complete the following: SECURITY NUMBER AMOUNT PRINCIPAL ISSUER b) Will funds received in excess of the security be impounded in a neutral escrow account, pursuant to B&P Code Section 11243(a)? ................................................................ NA (1) If YES, complete the following information. NAME ADDRESS (POST OFFICE BOXES ARE NOT ACCEPTABLE) CITY STATE 4. ZIP CODE Will an escrow bond, irrevocable letter of credit, or other financial assurance or arrangement acceptable to the commissioner be secured?. .......................................................... Yes No If YES, describe financial arrangement and submit a copy of arrangement for review. $ _____________________ The amount of the financial arrangement is: .................................................................... 5. Is the time-share property subject to a blanket encumbrance and will the developer, as an alternative to the financial arrangements under B&P Code Section 11243(a) or (c), comply with one of the alternative arrangements in B&P Code Section 11244(a)(2), (3), or (4) prior to issuance of the public report? ....................................................................................... a. If YES, will the developer record a subordination and notice of creditors as required under B&P Code Section 11244(a)(2)? .................................................................... Yes No Yes No Yes No If YES, submit copies of subordination document(s) and creditors notice(s) in compliance with B&P Code Section 11244(a)(2). b. If YES, has the developer transferred or will the developer transfer the accommodations, amenities, or all use rights to a nonprofit owners’ association and make any lien or other encumbrance subject to a subordination and notice of creditor’s instrument in compliance with B&P Code Section 11244(a)(3)? ................................................... If YES, submit copies of evidence of the transfer and subordination and creditor’s notice in compliance with B&P Code Section 11244(a)(3). RE 668A American LegalNet, Inc. www.FormsWorkflow.com Page 15 of 29 c. If YES, will arrangements be made to adequately protect the rights of purchasers in compliance with B&P Code Section 11244(a)(4)? ................................................... Yes No If YES, explain arrangements and submit copies of documents to support arrangements. Note: The alternative arrangements under B&P Code Sections 11244(a)(2), (3), and (4) are not acceptable alternatives to B&P Code Sections 11243(a) and (c) as long as the improvements in the time-share property are not completed. 6. Submit an executed statement and authorization consenting to an audit or examination of escrow account information. 14. EVIDENCE OF ENVIRONMENTAL IMPACT EVALUATION BY LOCAL GOVERNMENT — CALIFORNIA PROJECTS ONLY Yes 1. If NO, has a Final Environmental Impact Report (EIR) been issued? ............................. a. No Yes No Yes No Yes No NA If YES, submit the Notice of Determination, and the Summary of Findings section of the Report and, if any, the Statement of Overriding Considerations. b. No Yes A. Is this project a conversion of an existing structure? ............................................................... If NO, submit a Notice of Determination and the Summary of Findings section of the draft EIR or a copy of the Negative Declaration or other evidence of filing of a Negative Declaration or a statement from the lead agency that the project is exempt for CEQA. 15. SAMPLE DEPOSIT RECEIPT/SALES AGREEMENT [Master File Item] A. Was the sales agreement (deposit receipt) deemed acceptable by the Department under a previous filing designated as a Master File? ............................................................................ 1. If YES, have there been any changes to the document which were previously filed with the Department, subsequent to issuance of the most current public report? .......................... a. b. 2. If NO, it is not necessary to submit duplicates of documents previously filed with the Department. If YES, submit the amended changes of the documents previously filed with the Department, red-lined to show changes. Provide copy of proposed sales agreement (deposit receipt), not previously filed with the Department, containing all pertinent information and in compliance with B&P Code Section 11256. B. Will you option, sell or lease eleven (11) or more time-share estates or uses to any one entity, rather than market individual interests to the general public? ................................................. If YES, this is a material change requiring notice to the Commissioner. C. If a conditional public report/permit will be issued the purchase agreement must provide for the return of the entire sum of money paid or advanced by the purchaser if the final public report has not been issued within six months of the issuance date of the conditional public report/permit or the purchaser is dissatisfied with the final public report/permit because of a change pursuant to B&P Code Section 11226(f) and Regulation 2806. RE 668A American LegalNet, Inc. www.FormsWorkflow.com Page 16 of 29 16. FINANCING [Master File Item] A. Will the subdivider assist the purchaser in obtaining financing? ............................................ Yes No B. Will the developer be offering its own financing (i.e., developer taking back first, second, allinclusive note and deed of trust, etc.)? ..................................................................................... Yes No Yes No 1. If YES to A or B above, were any of the instruments, including notes and deeds of trust, mortgages, financing statements, security agreements or other documents evidencing obligation, used to finance the sale of time-share interests filed with the Department under a previous filing designated as a Master File? .................................................................. IF YES, indicate below the documents that were previously deemed acceptable as Master File items. _______________________________________________________________________________________________________ _______________________________________________________________________________________________________ _______________________________________________________________________________________________________ 2. Have there been any changes to document(s) previously filed with the Department or have any financing documents been created subsequent to issuance of the most current public report? ............................................................................................................................... Yes No If YES, identify those documents below and submit amended changes of the previously accepted document or sample copies of the newly created document(s). _______________________________________________________________________________________________________ _______________________________________________________________________________________________________ _______________________________________________________________________________________________________ It is not necessary to submit duplicates of any documents previously filed with the Department. 3. Provide copies any completed sample copies of notes and deeds of trust, mortgages, financing statements, security agreements or other documents evidencing obligation and the security therefore, including sample maturity date and describing any balloon payment provisions, with respect to documents not previously filed with the Department. Note: If any notes and deeds of trust, mortgages or contracts of sale will be offered to the public, such offering may be governed by the Real Property Securities Dealers’ Law, Article 6, Chapter 3, Part 1, Division 4, of the B&P Code. Indicate the instruments, including fact sheets (if applicable), to be used in this offering: _______________________________________________________________________________________________________ _______________________________________________________________________________________________________ _______________________________________________________________________________________________________ RE 668A American LegalNet, Inc. www.FormsWorkflow.com Page 17 of 29 Describe any initial or special fee due from the purchaser at closing together with a description of the purpose and method of calculating the fee. _______________________________________________________________________________________________________ _______________________________________________________________________________________________________ _______________________________________________________________________________________________________ Describe any right of first refusal or other restraint on the transfer of all or any portion of a timeshare interest. _______________________________________________________________________________________________________ _______________________________________________________________________________________________________ _______________________________________________________________________________________________________ Note: Civil Code Sections 2957 and 2963, require designated written disclosures to be made regarding a transaction for the purchase of a dwelling unit for not more than four families if the transaction involves extension of credit by the vendor and there is an arranger of credit. Note: It is recommended that the developer obtain advice from his/her attorney as to whether or not these Civil Code sections apply to the sales program. Note: If the answer to item B above is YES, continue to item C. Note: If this offering consists of time-share right-to-use interests, answer “NA” to items C and D. C. Does this time-share plan include accommodations, each of which is for not more than four families? ................................................................................................................................... Yes No NA Yes No NA Yes No NA D. If the response to item C above is YES, answer the next two questions. If the response to item C above is NO, go to item 17. 1. Will financing involve use of an “arranger of credit” as defined in Civil Code Section 2757(a)(1)? ....................................................................................................................... Note: A sales agent who does any of those things described by Civil Code Sections 2957(a) and (c) may be an arranger of credit.” 2. Is the developer an attorney or real estate licensee? ......................................................... Note: If the answers to items B, C, and D1 or D2 above are YES, sales in this subdivision will be subject to the requirements of Civil Code Section 2963. The subdivision public report/ permit will include a note to that effect. 17. CONVEYANCE OF TIME-SHARE INTERESTS [Master File Item] A. List the documents to be used in the transaction to convey the purchaser’s interests or use, such as deeds, leases, subleases, assignments, certificates, memberships, right-to-use agreements, obligations, etc. Provide copies, in exemplar form, of documents you list below: _______________________________________________________________________________________________________ _______________________________________________________________________________________________________ RE 668A American LegalNet, Inc. www.FormsWorkflow.com Page 18 of 29 _______________________________________________________________________________________________________ _______________________________________________________________________________________________________ _______________________________________________________________________________________________________ _______________________________________________________________________________________________________ 1. Were any of the documents, listed above deemed acceptable by the Department under a previous filing designated as a Master File? .................................................................... Yes No IF YES, list below the documents that were previously filed with the Master File. _______________________________________________________________________________________________________ _______________________________________________________________________________________________________ _______________________________________________________________________________________________________ a. Have there been any changes to document(s) previously filed with the Department, subsequent to issuance of the most current public report? ........................................ Yes No If YES, identify those documents below and submit amended changes of the previously accepted document. _______________________________________________________________________________________________________ _______________________________________________________________________________________________________ It is not necessary to submit duplicates of any documents previously filed with the Department. 2. Provide copies any completed sample conveyance documents not filed with the Department. B. Describe inventory control system and explain how it complies with B&P Code Section 11250. _______________________________________________________________________________________________________ _______________________________________________________________________________________________________ _______________________________________________________________________________________________________ _______________________________________________________________________________________________________ C. If the time-share plan offering is based on a points system, submit evidence to assure compliance with B&P Code Section 11233. _______________________________________________________________________________________________________ _______________________________________________________________________________________________________ _______________________________________________________________________________________________________ _______________________________________________________________________________________________________ _______________________________________________________________________________________________________ RE 668A American LegalNet, Inc. www.FormsWorkflow.com Page 19 of 29 _______________________________________________________________________________________________________ _______________________________________________________________________________________________________ D. Inventory control system (§11246) 1. Does the time-share plan involve past sales of time-share estates for which the developer offers and the title insurance company agrees to provide title insurance? ....................... a. Yes No If YES, complete the following: NAME OF INSURER ADDRESS (POST OFFICE BOXES NOT ACCEPTABLE) CITY STATE ZIP CODE Note: The title insurance company must be deemed acceptable under B&P Code Section 11246. b. If NO, submit a certification by an independent third party that is dated not more than three months prior to the submittal of this application and is in compliance with B&P Code Section 11246. a) The independent third party is: ........................................................................... A California licensed title insurance company An independent certified public accountant b) Provide the following third party information: NAME OF TITLE COMPANY OR CPA NAME OF PERSON SIGNING CERTIFICATION (IF TITLE COMPANY) TELEPHONE NUMBER CAPACITY (IF TITLE COMPANY) BUSINESS ADDRESS CITY STATE ZIP CODE 18. COMPLETION OF TIME-SHARE PROPERTY INCLUDING ALL RENOVATIONS In accordance with Regulation 2809.1(a)(7), evidence must be presented to show that the accommodations are presently suitable for human occupancy or that financial arrangements have been made to complete construction or renovation of the accommodation to make it suitable for human occupancy on or before the first date for occupancy by a time-share interest owner. A. 1. Are the structures containing the accommodations complete? ......................................... Yes No Yes No If YES, submit evidence of completion in accordance with B&P Code Section 11243(b). 2. Are the remaining common area improvements complete? .............................................. If YES, submit evidence of completion in accordance with B&P Code Section 11243(b). 3. If NO to item A1 or A2, indicate estimated completion date(s) for each and select method of complying with B&P Code Section 11230 under item B, C, D, E, or F below. _______________________________________________________________________________________________________ _______________________________________________________________________________________________________ RE 668A American LegalNet, Inc. www.FormsWorkflow.com Page 20 of 29 4. If this is a conversion, will the units to be time-shared and/or the common or public areas be renovated or refurbished as part of the time-share program? ...................................... Yes No a. Yes No Will all renovation work be complete prior to public report issuance? .................... 1) If YES, submit evidence of completion prior to report issuance. 2) If NO, indicate estimated completion date and select method of complying with B&P Code Section 11230 under item B, C, D, E, or F below. _______________________________________________________________________________________________________ _______________________________________________________________________________________________________ _______________________________________________________________________________________________________ B. If project is located outside California, does the appropriate local agency of the situs state impose bonding (or alternative security arrangement) to ensure completion of all common area amenities within this project? .................................................................................................. 1. No Yes No Yes No Yes No Yes No If YES, submit copies of security instrument and itemization of each improvement covered and its cost to complete. If security covers completion of all amenities, proceed to item 19. C. Will a bond in accordance with B&P Code Section 11230(a) be used to assure completion? 1. Yes If YES, submit a completed copy of the bond. Note: The amount of the required bond must cover the cost of all improvements, accommodations, and appurtenant facilities included in the offering. D. Will all funds from the sale of the time-share interests as the commissioner shall determine to assure completion be bonded or impounded in an escrow depository until the improvements have been completed and all applicable lien periods have expired in accordance with B&P Code Section 11230(b)? .................................................................................................................... 1. If YES, submit a copy of completed RE 611A. Note: If project is located outside California, escrow instructions may be modified in accordance with any law that is for protection of workmen or suppliers, similar to California Mechanic Lien Laws. Submit information concerning such laws if you do not wish to follow the intent of these escrow instructions. E. Will an amount sufficient to cover the costs of construction be deposited in a neutral escrow depository acceptable to the commissioner under a written escrow agreement providing for disbursements from the escrow as work is completed in compliance with Section 11230(c)? If YES, submit completed RE 611A and proposed escrow instructions providing for schedule of disbursements as work is completed. F. Will any alternative plan in accordance with B&P Code Section 11230(d) be used? ............ If so, provide explanation. _______________________________________________________________________________________________________ _______________________________________________________________________________________________________ _______________________________________________________________________________________________________ RE 668A American LegalNet, Inc. www.FormsWorkflow.com Page 21 of 29 19. BUDGET AND ASSESSMENT INFORMATION A. Submit a copy of the budget meeting the requirements of B&P Code Section 11240. B. Describe the method for calculating and apportioning assessments among purchasers. C. Provide a certification of the budget in compliance with B&P Code Section 11240(f) within 90 days prior to submission of the budget. 1. a. b. An independent public accountant A certified public accountant (developer employee) Another qualified individual or entity The certification will be subscribed and sworn by: ................................................... Include the following information about the person/entity certifying the budget. NAME TELEPHONE NUMBER ADDRESS 2. Do you request that the budget be reviewed by the Budget Review Section of the Department of Real Estate? .............................................................................................. Yes No Yes No Has the developer entered into any arrangement to reduced the purchasers assessment obligations, other than a shortfall subsidy arrangement described in 18A above? .......... Yes No If YES, has this subsidy arrangement been previously reviewed and accepted by DRE without any subsequent changes? ..................................................................................... Yes No If YES, submit a duplicate budget package. Refer to RE 668 for content and set-up instructions. 20. MAINTENANCE ASSESSMENTS/SUBSIDY AGREEMENT A. Developers maintenance expense obligation 1. Please check the appropriate box below to identify the method of fulfilling the developers obligation for expenses associated with unsold intervals and submit and financial assurances for his obligation (Section 11241): The developer shall pay full maintenance fee for each if the interests owned. The developer has entered into a subsidy agreement with the association to subsidize the association budget buy covering any shortfall from expenses incurred and assessments collected for other owners. 2. If the developer has entered into a subsidy agreement to cover any shortfall form the expenses incurred and assessments collected form other owners, has the subsidy agreement been previously reviewed and accepted by DRE without any subsequent changes? ....... NA If NO, submit the subsidy agreement and proposed financial assurances incompliance with Section 11241. B. Other subsidies 1. 2. NA If NO, submit the subsidy agreement and proposed financial assurances in compliance with Section 11242. RE 668A American LegalNet, Inc. www.FormsWorkflow.com Page 22 of 29 21. INSURANCE Provide description and state amount of insurance coverage provided for the protection of the purchaser. Refer to B&P Code Section 11253. 22. PURCHASERS ESCROW INSTRUCTIONS A. Submit a copy of instructions to escrow depository for compliance with B&P Code Section 11241 including the following: 1. Name and address of escrow depository. 2. A description of the nature of the transaction. 3. Conditions that must be satisfied before escrow can be closed. 4. Provision for the return to a prospective purchaser of funds deposited toward the purchase of a time-share interest if the escrow for the transaction has not closed on or before a given date. a) If a conditional public report will be issued, also provide for the return of the entire sum of money advanced by the purchaser if a final subdivision public report has not been issued within six months of the date of issuance of the conditional public report or the purchaser is dissatisfied with the public report because of a change pursuant to B&P Code Section 11226(f).