EL DORADO LOFTS

A “Minimum Selling Price” has been established for each Home and is the price at which bids must start. Offers lower than the Minimum Selling Price will not be accepted. Bidders make bids on the Home of their choice with the assurance that if they make the highest bid at or above the Minimum Selling Price, their bid will be accepted (subject to 14C below). There are no unpublished reserves or hidden reserve prices. Neither the Seller nor any of its agents will bid during the course of the Auction.

See El Dorado Lofts Auction brochure or web site, www.ElDoradoLofts.com or visit El Dorado Lofts Auction Information Office for the “Minimum Selling Price” for each Home to be offered at the Auction.

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Registration and pre-qualification with Seller’s Preferred Mortgage Lender(s), is required to participate in the Auction and to become eligible to submit bids (a “Registered Bidder”). Registration is not complete until pre-qualification for home loan financing is obtained from the Seller’s Preferred Mortgage Lender(s), or the Registered Bidder provides documentation satisfactory to Seller that the Registered Bidder has cash sufficient to close escrow. Prior to Auction day, complete and submit the Registration Form at www.ElDoradoLofts.com or at El Dorado Lofts Auction Information Office. In addition, Registered Bidders must provide the “banking” and other financial information requested on the Registration Form. The Registration Form is not a credit application; it is however, required and must be provided before Registration can be processed.

Registered Bidders who are planning to purchase more than one Home, must submit the Registration Form no later than April 16, 2010. Registered Bidders registering to buy more than one Home will be notified of the number of Homes they have been approved to purchase prior to Auction day. No bidder may purchase more than four Homes. Approval to purchase more than one unit will be at the sole discretion of the Seller.

All approved Registered Bidders must present a separate cashier’s check, traveler’s check, certified check, money order (“Good Funds”) or cash in the amount of $2,000 for each Home that they have been approved to purchase. The “Good Funds” or cash will be used as a portion of the required 3% purchase deposit for each respective Home. Registered Bidders should make “Good Funds” payable to the Registered Bidder’s name. Winning high bidders will endorse their check to the First American Title Company Escrow Holder, as part of the 3% purchase deposit on their Home. The balance of the deposit will be by personal check.

Only Registered Bidders will be allowed to participate in the Auction. At check-in, after Good Funds are presented, Registered Bidders will receive an Auction packet and, Personal Identification Code (“PIC”). A California driver’s license, government issued or other photo identification card acceptable to Seller must be presented at check-in in order to receive a PIC and must otherwise match all Registration Form and the subsequent Purchase Agreement identification information (if the bidder is successful).
submitted with less than one minute remaining on the clock are at risk of not being entered in the system before the Auction ends. The auction ends when the Auctioneer announces that the Auction is closed. The simultaneous and continuous features and bidding procedures of the Auction will be explained and demonstrated at the Auction Information Office and at Practice Auctions held prior to the Auction.

Registered Bidders may make bids on all of the Homes during the course of the Auction. However, Registered Bidders may be the high bidder on only the number of Homes that they have been pre-approved to purchase. In the event a Registered Bidder holds the high bid on that number of Homes, the Auction computer will NOT accept a bid submitted on an additional Home.

Offers, which meet the following conditions, will be accepted on Auction day.
(A) Offers must be submitted by a Registered Bidder.
(B) Offers must be submitted with a verified PIC.
(C) Offers must be a minimum of $5,000 higher than the previous high bid for a Home.
(D) Bids must be rounded to the nearest $1000 increment. The computer will automatically round any bid submitted that is less than the required increment to the next highest $1000 increment.

During the Auction, all bids will be entered into the Intellimarket computer. The computer will identify and accept the high bid for each Home in the Auction. There will be an Auctioneer and floor personnel to assist all on site Registered Bidders with their bidding and the Auction process.

Immediately following the end of the Auction, before departing the Auction site, Registered Bidders at the Auction site, who have made the high bid (“Buyer”) on a Home will initiate loan application with Sellers Preferred Lender(s), pay the appraisal fee, complete and sign Purchase Documents and make a 3% deposit on the Purchase Price of the Home (as determined pursuant to 5 below). In addition, Buyer will pay the appraisal fee and any deposit or other fees required by Seller’s Preferred Mortgage Lender to commence mortgage financing.

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A Buyer’s Premium of 2.5% of the high bid will be added to the high bid to equal the Purchase Price of each Home. This Purchase Price is the amount on which Buyers will obtain mortgage financing.

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As further specified in the Purchase Documents, Homes at El Dorado Lofts are being sold ”As-Is, Where-Is,” without contingency except for obtaining financing from the Seller’s Preferred Lender. Bidders must personally visit El Dorado Lofts and personally investigate and inspect all the Homes they are interested in purchasing. Purchase Documents are available at El Dorado Lofts Auction Information Office and at www.ElDoradoLofts.com. Purchase documents must be thoroughly reviewed for details of the offering. Such Purchase Documents include, but are not limited to (a) El Dorado Lofts Deposit Receipt, Offer to Purchase Property & Escrow Instructions and addenda (if any); (b) Preliminary Title Report; (c) Department of Real Estate of State of California Final Subdivision Public Report; (d) Supplemental Disclosures; (e) Declaration of Covenants, Conditions and Restrictions For El Dorado Lofts (f) Condominium Plan; (g) other Association Documents; (h) Limited Warranty Materials. Other documents and disclosures will also be available for review.

Buyers will become members of El Dorado on Spring Property Owners' Association (the “Association”) and will be assessed a monthly fee (“HOA Dues”) depending on the size of the Home. Among other things, the Association provides all Homes with water, trash and common area maintenance. In addition, the Association is responsible for insurance on all Common Areas.

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Buyers are required to apply for mortgage financing with the Seller’s Preferred Mortgage Lender(s), and pay for an appraisal on the Home being purchased. A variety of financing programs are available. Please visit El Dorado Lofts Auction Information Offices for details regarding the programs. Buyers are not required to accept financing from Seller’s Preferred Mortgage Lender(s) and may obtain financing from any lender they choose. However, the purchase of a Home at El Dorado Lofts Auction is not contingent upon loan approval unless financing is denied by the Seller’s Preferred Mortgage Lender(s).

Within two days after the Auction, a successful Buyer who chooses to apply for third-party financing (financing other than that offered by Seller) must notify El Dorado Lofts Auction Information Office of his or her lender and a contact person for that lender. Just as importantly, each Buyer must obtain a written lending commitment from their lender within 15 days after the Auction. Failure to timely obtain such commitment will result in termination of the purchase agreement unless Buyer elects in writing to proceed to closing on an all cash basis in which event the deposit will become nonrefundable.

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Within two days after the Auction, a successful Buyer who chooses to apply for third-party financing (financing other than that offered by Seller) must notify El Dorado Lofts Auction Information Office of his or her lender and a contact person for that lender. Just as importantly, each Buyer must obtain a written lending commitment from their lender within 15 days after the Auction. Failure to timely obtain such commitment will result in termination of the purchase agreement unless Buyer elects in writing to proceed to closing on an all cash basis in which event the deposit will become nonrefundable.

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Participation of all licensed California real estate brokers (or active licensed sales agents) is welcome and encouraged. A commission of 3% of the winning bid amount for a Home (not including Buyer’s Premium) will be paid by the Seller to the qualified broker whose client is a high bidder at the Auction and who completes his or her purchase and escrow closes as provided in the Purchase Agreement. Broker cooperation requires (a) a cooperating broker to accompany and sign-in his or her client on their first visit to El Dorado Lofts, (b) written registration of the broker by the buyer on the Registration form, (c) execution by Broker of Seller’s standard broker cooperation agreement, (d) the Broker to attend the Auction with the client and accompany the client through the contract completion process immediately following acceptance of its winning bid, (e) that the Broker is not related to and has no affiliation whatsoever with the Successful Purchaser (except as a broker), (f) that neither the Broker nor the agent representing the Buyer is purchasing for his/her own account, and (g) that the broker is a licensed California broker. Attendance at this auction is acknowledgment by Registered Bidders that William R. Stevenson & Associates is the exclusive real estate agent of the Seller and is not acting as the real estate agent for or representative of any Buyer.

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All sales must close on or before June 9, 2010 unless extended by the Seller in writing, which shall be at the sole and absolute discretion of Seller. Seller shall pay, as its closing charges the recording charges. Buyer agrees to pay as its closing charges (i) charges for drawing and recording any other document necessary on Buyer’s part, (ii) title insurance charges, (iii) city and county documentary transfer taxes, (iv) Escrow Holder’s Escrow fee or Escrow termination charge, (v) all costs related to purchase financing, and (vi) Buyer’s closing costs which may vary according to lender. All Buyers will be required to pay prorated real property taxes and assessments.

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Requests for extensions must be made in writing at least five days prior to the scheduled closing date. All extension requests are evaluated by the Seller on a case-by-case basis and are at Seller’s sole and absolute discretion. No sale will be contingent upon receiving an extension from the Seller.

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There will be no options, upgrades or other incentives offered to any bidder and/or Purchaser.

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A. To the extent permitted by law, no claim will be considered for allowance, adjustment or rescission based upon failure of the Home to correspond to any particular expectation or standard (except the Preliminary Title Report).

B. Bidders are accountable for submitting bids in a timely manner. Any bids submitted with less than one minute remaining on the clock are at risk of not being entered before the Auction ends. The Auction ends when the Auctioneer announces that Auction is closed. In the event of a dispute, the Auctioneer shall make the sole and final decision to accept or reject a disputed bid. The Auction will be recorded and, if any dispute arises following the Auction, the Auctioneer’s records shall be conclusive in all respects.

C. In the event that fewer than 33 Homes are sold at the auction, or fewer than 33 buyers are able to qualify for financing within 15 days of the auction, Seller reserves the right to cancel all auction sales and return all deposits to auction buyers.

D. Title to the Home will be conveyed to the Buyer in fee simple, subject to only current taxes and assessments, easements, rights-of-way, reservations, covenants, conditions and restrictions of record, and printed exceptions in the standard form CLTA Policy of Title Insurance and any loan amount which Buyer obtains to finance the purchase of the Home. A copy of the Preliminary Title Report for each Home must be inspected and accepted prior to the Auction.

E. To provide prospective buyers with the approximate square footages which are comparable to the square footage measurements for single family homes, townhouses and duplexes, the approximate square footages provided by Seller for El Dorado Lofts are calculated based upon the standard similar to the standard for calculating square footage in single-family detached and attached homes developed and approved by the American National Standards Institute, Inc. (ANSI). The square footage quoted for each Loft is the approximate gross living area square footage of such Loft and is calculated based upon the approximate distance between the exterior surface of the perimeter walls and the center of the demising walls between Lofts. Such gross living area square footage includes portions of the perimeter walls, beams, ducts, chases, returns, and similar concealed areas which occupy a part of the gross living area of the Loft. Buyer will only have use of the airspace within the Loft up to the interior face of each perimeter wall, which interior airspace will be smaller than the gross living area airspace. The approximate gross living area square footages are provided for sale and comparison purposes only (as compared to other single-family homes, townhouses and duplexes available on the market) and are not intended to be and shall not be used as a statement of actual usable square footages contained within any Loft or described in any condominium plan. Room sizes, square footages and scale are approximations only. The final size and square footage of a room or Loft is subject to constructed measurements. A portion of the square footage of the Loft calculated as described above is Association Property or Common Area as established by the condominium plan. F. Bidders must personally visit El Dorado Lofts and personally investigate and inspect all the Homes they are interested in purchasing before Auction day.

G. Seller reserves the right to refuse admittance to or expel anyone from the Auction premises for interference with Auction activities, nuisance, canvassing or other reasons.

H. Homes shall be sold in the existing “As-Is, Where-Is” condition, subject to all observable and non-observable defects and deficiencies. Each Home shall be sold and delivered completed with a certificate of occupancy. No improvements to land, structure, finishes or any other component or element of the Property or common areas of the El Dorado Lofts, will be undertaken by the Seller. Prospective Buyers are required to confirm that they have examined the Home and all supporting documentation carefully. Each Buyer is responsible for evaluating the Home and shall not rely on the Seller, the auctioneer or sales agents.

I. Seller reserves the right to change terms and prices without notice, prior to the commencement of the auction.

J. Seller grants Buyer 3 days, after the date Buyer executes the Purchase Agreement and Escrow Instructions to terminate the Purchase Agreement and cancel Escrow, by delivering a notice of termination to Escrow Holder and Seller by recognized overnight courier or by personal service. If Buyer elects to terminate the Purchase Agreement within the 3 day period, all of Buyer’s deposits shall be refunded within 15 days of notice and Escrow shall be cancelled at Seller’s expense.

K. VOID WHERE PROHIBITED. Auction packets will not be mailed to and registration packets will not be accepted from residents of states where an offer or sale would be in violation of laws of that state, including but not limited to the real estate laws.

L. All rules and regulations regarding the Auction and sales process shall be determined by Seller and are subject to change without notice. All transactions are subject to these official rules, procedures, regulations and decisions, together with Federal and state law. The Purchase Documents will supersede the Terms & Conditions where inconsistent.

M. Notwithstanding anything to the contrary herein Seller has the right, at any time, to postpone or cancel the Auction in whole or in part, in its sole and absolute discretion, and to modify or add any terms and conditions of sale and to announce such modifications or additional terms and conditions.

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