SUBDIVISIO DISCLOSURE REPORT (PUBLIC REPORT)

FOR LAS BRISAS PHASE 1 aka THE DISCOVERY COLLECTIO AT LAS BRISAS and THE ECORE COLLECTIO AT LAS BRISAS

Registration No. DM10-055224

SUBDIVIDER TM HOMES OF , INC., an Arizona corporation 9000 East Pima Center Parkway, Suite 350 Scottsdale, Arizona 85258

Effective Date: FEBRUARY 24, 2010

PROPERTY REPORT DISCLAIMER

This report is NOT A RECOMMENDATION NOR AN ENDORSEMENT by the State of Arizona of this land. The application and public report have not been subjected to a detailed examination by the Department. The report was prepared by the subdivider and none of the information in this report has been verified by the Department; all information has been accepted by the Department as true and accurate based on attestation of the subdivider/or the subdivider’s agents. The purchaser should verify all facts before signing any documents. The Department assumes no responsibility for the quality or quantity of any improvement in this development .

THIS DEVELOPMET IS LOCATED WITHI TERRITORY I THE VICIITY OF A MILITARY AIRPORT. THE DEPARTMET MAITAIS A REGISTRY OF IFORMATIO PROVIDED BY THE MILITARY AIRPORT. THE REGISTRY ICLUDES MAPS OF MILITARY FLIGHT OPERATIOS AD A MAP SHOWIG THE EXTERIOR BOUDARIES OF EACH TERRITORY AD HIGH OISE OR ACCIDET POTETIAL ZOE. THIS IFORMATIO IS AVAILABLE TO THE PUBLIC O REQUEST. STATE OF ARIZOA DEPARTMET OF REAL ESTATE TUCSON OFFICE: PHOENIX OFFICE: 400 West Congress 2910 N. 44 th Street Suite 523 Suite 130 Tucson, Arizona 85701 Phoenix, Arizona 85018 (520) 628-6940 (602) 771-7750

FORM P2 1/22/2009 1

Contents GENERAL ...... 4 SUBDIVISION LOCATION ...... 7 UTILITIES ...... 7 STREETS, ROADS AND DRAINAGE ...... 8 LOCAL SERVICES AND FACILITIES ...... 9 COMMON, COMMUNITY AND RECREATIONAL FACILITIES ...... 10 ASSURANCES FOR COMPLETION OF IMPROVMENTS ...... 11 PROPERTY OWNERS ASSOCIATIONS ...... 11 SUBDIVISION CHARACTERISTICS ...... 12 SUBDIVISION USE AND RESTRICTIONS ...... 22 AIRPORTS ...... 22 TITLE ...... 23 METHOD OF SALE OR LEASE ...... 24 TAXES AND ASSESSMENTS ...... 25

FORM P2 1/22/2009 2

THE ARIZOA DEPARTMET OF REAL ESTATE

REQUIRES THAT:

1. You BE GIVEN this public report;

2. YOU SIGN A RECEIPT indicating that you received this report;

RECOMMEDS:

1. You DO NOT SIGN ANY AGREEMENT before you have read this report;

2. You see the EXACT PROPERTY you are interested in BEFORE SIGNING any document for lease or purchase.

ARIZOA LAW STATES:

1. THE SALE OR LEASE OF SUBDIVIDED LANDS PRIOR TO ISSUANCE OF THIS REPORT OR FAILURE TO DELIVER THIS REPORT TO YOU SHALL RENDER THE SALE OR LEASE RESCINDABLE BY YOU. ACTION TO RESCIND MUST BE BROUGHT WITHIN 3 YEARS FROM DATE OF EXECUTION OF PURCHASE AGREEMENT.

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

3. IF YOU HAVE SIGNED A PURCHASE AGREEMENT FOR THE PURCHASE OF AN UNIMPROVED LOT (WITHOUT A BUILDING)* PRIOR TO INSPECTING THE LOT, YOU HAVE SIX MONTHS TO INSPECT AND UPON INSPECTION MAY RESCIND THE PURCHASE AGREEMENT.

*A contract or agreement for purchase of a lot which includes a building or obligates the seller to complete construction of a building within two years from the contract date does not constitute the purchase of an unimproved lot. Therefore, if your purchase includes a lot and a building or a building to be built, you are not entitled to the rescission rights described in paragraphs 2 and 3.

FORM P2 1/22/2009 3 LICENSE NO. DM10-055224 LAS BRISAS PHASE 1 AKA THE DISCOVERY COLLECTION AT LAS BRISAS AND THE ENCORE COLLECTION AT LAS BRISAS

GEERAL

This report includes: Lots 213 through 324, inclusive.

The map of this subdivision is recorded in Book 886 of Maps, page 39, records of Maricopa County, Arizona.

The subdivision is approximately 115.806 acres in size. It has been divided into 324 Lots, 26 tracts A-Z. Lot boundaries will be staked at the corners and radii.

Prospective purchasers are hereby advised that the recorded plat for this subdivision contains the following, in part:

DEDICATIO TRACTS A, F, H, I, N, P, Q, U, V, X INCLUSIVE, ARE OPEN SPACE, LANDSCAPE AREA AND DRAINAGE EASEMENTS AND SHALL BE CONVEYED TO AND MAINTAINED BY LAS BRISAS COMMUNITY ASSOCIATION, AN ARIZONA NON-PROFIT CORPORATION.

TRACTS B THROUGH E, G, J THROUGH M, O, R THROUGH T, W, Y, Z INCLUSIVE, ARE OPEN SPACE AND LANSCAPE AREA AND SHALL BE CONVEYED TO AND MAINTAINED BY LAS BRISAS COMMUNITY ASSOCIATION, AN ARIZONA NON- PROFIT CORPORATION.

OTES

1. NO STRUCTURES OF ANY KIND SHALL BE CONSTRUCTED OR PLACED WITHIN OR OVER UTILITY EASEMENTS EXCEPT UTILITIES AND WOOD, WIRE OR REMOVABLE SECTION TYPE FENCE, ASPHALT PAVING OR GRASS. IT SHALL BE FURTHER UNDERSTOOD THAT THE CITY SHALL NOT BE REQUIRED TO REPLACE ANY OBSTRUCTIONS, PAVING OR PLANTING THAT MUST BE REMOVED DURING THE COURSE OF MAINTENANCE, CONSTRUCTION OR RECONSTRUCTION ACTIVITIES. 2. NO STRUCTURES OF ANY KIND SHALL BE CONSTRUCTED, OR ANY VEGETATION PLANTED OR BE ALLOWED TO GROW WITHIN OR ON, A DRAINAGE EASEMENT THAT WOULD OBSTRUCT OR DIVERT THE OF STORM WATER RUNOFF. THE CITY MAY, IF IT SO DESIRES, CONSTRUCT OR MAINTAIN DRAINAGE FACILITIES ON OR WITHIN THE LAND OF THE EASEMENT. 3. ALL NEW OR RELOCATED UTILITIES SHALL BE PLACED UNDERGROUND, EXCLUDING POWER LINES 69kV AND LARGER.

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4. LAS BRISAS PHASE 1 IS SUBJECT TO ATTENDANT NOISE, VIBRATIONS, DUST AND ALL OTHER EFFECTS THAT MAY BE CAUSED BY OVERFLIGHTS AND BY THE OPERATION OF AIRCRAFT LANDING AT, OR TAKING OFF FROM THE PHOENIX-GOODYEAR AIRPORT AND LUKE AIR FORCE BASE: AND FROM VEHICULAR TRAFFIC ON INTERSTATE 10 AND/OR THE PROPOSED LOOP 303 EXTENSION. EACH HOMEOWNER DOES RELEASE AND DISCHARGE THE CITY AND OWNER, AND ITS PARENT, SUBSIDIARIES AND OTHER AFFILIATES AND THEIR RESPECTIVE DIRECTORS, OFFICERS, MEMEBERS, EMPLOYEES AND AGENTS FROM ANY LIABILITY FOR ANY AND ALL CLAIMS FOR DAMAGES AND COMPLAINTS OF ANY KIND TO PERSONS OR PROPERTY THAT MAY ARISE AT ANY TIME IN THE FUTURE FROM VEHICULAR TRAFFIC NOISE OR THE OPERATION OF AIRCRAFT NEAR AND OVER THE AREA. 5. NO TWO-STORY HOMES SHALL BE LOCATED ADJACENT TO ARTERIAL STREETS UNLESS SEPARATED BY A 35’ LANDSCAPE SETBACK, OR ON ANY CORNER LOTS. NO MORE THAN THREE TWO-STORY HOMES WILL BE ALLOWED SIDE BY SIDE, AND THREE CONSECUTIVE TWO-STORY HOMES MUST BE FOLLOWED BY A MINIMUM OF TWO ONE-STORY HOMES. IF TWO (2) TWO-STORY HOMES ARE LOCATED SIDE BY SIDE, THEN THEY MUST BE FOLLOWED BY AT LEAST ONE (1) ONE-STORY HOME. LOTS 1, 8-20, 36, 37, 48, 49, 51, 52, 59, 60, 67, 76, 77, 87,88, 97, 98, 107, 108, 116-135, 142, 143, 150-158, 171, 173, 181, 182, 189, 191, 192, 201, 202, 212-220, 225, 226, 231-236, 257, 258, 267, 273, 274, 280, 281, 287, 292, 293, 301, 302, 314, AND 315 ARE RESTRICTED TO ONE STORY. 6. LAS BRISAS COMMUNITY ASSOCIATION SHALL OWN AND MAINTAIN ALL OPEN SPACE AREAS, TRAILS, AND OTHER COMMUNITY AMENTITLES AND MAINTAIN ALL ARTERIAL AND COLLECTOR ROAD RIGHT OF WAY LANDSCAPING EXCEPT FOR ARTERIAL MEDIAN LANDSCAPING. 7. PORTIONS OF LAS BRISAS PHASE 1 ARE LOCATED ADJACENT TO RURAL RESIDENTIAL PROPERTIES THAT HAVE LARGE ANIMAL (HORSE) PRIVILEGES, AND ARE ALLOWED TO CONDUCT CERTAIN AGRICULTURAL USES ON THEIR PROPERTY. THESE AGRICULTURAL USES SUBJECT THIS SUBDIVISION TO ODORS, NOISE, PESTICIDES AND DUST ASSOCIATED WITH SUCH USES. 8. THIS DEVELOPMENT IS WITHIN THE SERVICE AREA OF THE CITY, WHICH HAS BEEN DESIGNATED AS HAVING AN ASSURED WATER SUPPLY PURSUANT TO A.R.S. 45-576 SUBSECTION B. THE CITY’S ASSURED WATER SUPPLY DESIGNATION IS SUPPORTED IN PART THE CITY’S MEMBERSHIP IN THE CENTRAL ARIZONA GROUNDWATER REPLENISHMENT DISTRICT (CAGRD). PROPERTY WITHIN THIS DEVELOPMENT MAY BE ASSESSED A FEE BASED ON ITS PRO RATA SHARE OF THE CITY’S COST FOR CAGRD PARTICIPATION. 9. STRUCTURES AND LANDSCAPING WITHIN VISIBILITY EASEMENTS WILL BE LIMITED TO GROUND COVER, GRANITE AND FLOWERS LESS THAN 2 FEET (MATURE) IN HEIGHT AND/OR TREES WITH BRANCHES NO LESS THAN 6 FEET ABOVE THE GROUND. TREES SHALL NOT BE PLACED LESS THAN 8 FEET APART. FORM P2 1/22/2009 5 LICENSE NO. DM10-055224 LAS BRISAS PHASE 1 AKA THE DISCOVERY COLLECTION AT LAS BRISAS AND THE ENCORE COLLECTION AT LAS BRISAS

10. SIGNAGE SHALL BE POSTED WITHIN THE SUBDIVISION SALES OFFICE IDENTIFYING THE LOCATION OF THE LUKE AIR FORCE BASE ACCIDENT POTENTIAL ZONES (APZS). 65 LDN AND HIGHER NOISE CONTOURS AND DEPARTURE CORRIDORS AS WELL AS THE PHOENIX GOODYEAR AIRPORT TRAFFIC PATTERN AREA AND NOISE CONTOURS AS TWENTY-FOUR INCH BY THIRTY-SIX INCH (24”x 26”) MAP AT THE MAIN ENTRANCE OF SUCH SALES FACILITIES AND SHALL INCLUDE THE APPROXIMATE LOCATION OF THE HOMES OR APARTMENTS BEING SOLD OR LEASED CLEARLY DEPICTED. (THE REQUIRED CONTENTS OF THE MAP SHALL BE PROVIDED BY THE CITY). 11. ALL LOT CORNERS SHALL BE MONUMENTED WITH ½” REBAR WITH A CAP, TAG OR OTHER MONUMENTATION AS DESCRIBED BEARING THE REGISTRATION NUMBER OF THE SURVEYOR RESPONSIBLE FOR THEIR PLACEMENT. 12. THE CITY IS NOT RESPONSIBLE FOR AND WILL NOT ACCEPT MAINTENANCE OF ANY PRIVATE UTILITIES, PRIVATE STREETS, PRIVATE FACILITIES AND LANDSCAPED AREAS WITHIN THE DEVELOPMENT. 13. THE DRIVEWAY ON KEY LOT 174 IS TO BE LOCATED ON THE SIDE OF THE LOT OPPOSITE THE ADJACENT REAR LOT LINE. 14. DRIVEWAYS ON CORNER LOTS ARE TO BE LOCATED ON THE SIDE OF THE LOT FURTHEST FROM THE STREET INTERSECTION. 15. LAS BRISAS PHASE 1 OWNER WILL ACCEPT RESPONSIBILITY FOR MAINTENANCE OF TRACTS A-Z UNTIL SUCH TIME AS THE RESPONSIBILITY IS FORMERLY TURNED OVER TO THE HOMEOWNERS ASSOCIATION. 16. AT T-INTERSECTIONS (THREE-WAY INTERSECTIONS) THE NON-LIVING SPACE SIDE OF THE HOUSE SHALL BE POSITIONED ON THE LOT IN ORDER TO AVOID HEADLIGHT INTRUSION INTO LIVING AREAS. LOTS 4, 24, 25, 28, 29, 40, 41, 55, 56, 110, 154, 155, 195, 196, 215, 283, 284, 296, 318, AND 319. 17. ALL PROPOSED DWELLINGS SHALL BE SINGLE FAMILY/DETACHED. 18. COMMON AREAS SHOWN ON THIS PLAT ARE RESERVED FOR THE PRIVATE USE AND CONVENIENCE OF ALL OWNERS OF PROPERTY WITHIN THIS SUBDIVISION. 19. NO DETACHED ACCESSORY BUILDING SHALL BE LOCATED CLOSER TO THE STREET SIDE OF A CORNER LOT THAN THE FRONT YARD REQUIRED ON A KEY LOT, EXCEPT SUCH SETBACK NEED NOT BE GREATER THAN ONE-HALF THE WIDTH OF THE CORNER LOT. 20. ADJACENT DWELLING UNITS ARE PROHIBITED FROM HAVING IDENTICAL BUILDING ELEVATIONS AND EXTERIOR COLORS. 21. RAMPS WILL BE PROVIDED ON SIDEWALKS PER A.D.A. REQUIREMENTS. 22. THE ENTIRE LAS BRISAS PHASE ONE PROJECT IS TO BE FINAL PLATTED AND CONSTRUCTED IN ONE PHASE. 23. TYPICAL SIDE STREET TRACTS ARE 10’ WIDE. 24. EXISTING EASEMENTS WILL BE ABANDONED BY SEPARATE INSTRUMENT AFTER ALL THE FACILITIES WITHIN THE EXISTING EASEMENTS HAVE BEEN REMOVED, OR RELOCATED, WHERE SHOWN ON THE PLAT.

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25. THIS DEVELOPMENT IS WITHIN THE VICINITY OF A PROPOSED 230kV OVERHEAD ELECTRIC LINE PLANNED ALONG THE WEST SIDE OF PERRYVILLE ROAD.

YOU ARE ADVISED TO OBTAI A COPY OF THE RECORDED MAP AD CORRECTIO DOCUMETS, IF AY, AD OTE ALL EASEMETS, RESTRICTIOS AD STATEMETS COTAIED THEREI.

SUBDIVISIO LOCATIO

Location : Subdivision is located on the southeast corner of Lower Buckeye Road and Perryville Road, City of Goodyear, Maricopa County, State of Arizona.

UTILITIES

Electricity : Arizona Public Service, 400 North 5 th Street, Phoenix, Arizona, (602) 371-7171; website: www.aps.com . The facilities are complete to the lot lines. Costs to purchasers include a deposit of approximately $230.00 for a new customer and, if required, a $25.00 (plus tax) activation fee. Once service is established, direct user charges will apply. Fees and/or deposits are subject to change, please contact the utility provider for further details.

Telephone : Cox Communications, (623) 748-8957 or 800-957-7250, 1550 West Deer Valley Road, Phoenix, Arizona 85027, website: www.cox.com . The facilities are complete to the lot lines. Costs to purchasers include an activation fee of $19.95 and may require a minimum deposit of $90.00. Once service is established, direct user charges will apply. Fees and/or deposits are subject to change; please contact the utility company for further details.

Cable: Cox Communications, (623) 748-8957 or 800-957-7250, 1550 West Deer Valley Road, Phoenix, Arizona 85027, website: www.cox.com . The facilities are complete to the lot lines. Costs to purchasers include an installation charge of $9.95 (fast connect) or $24.95 (professional connect) and may require a minimum deposit of $60.00. Once service is established, direct user charges will apply. Fees and/or deposits are subject to change; please contact the utility company for further details.

Internet or Fiber Optic: Cox Communications, (623) 748-8957 or 800-957-7250, 1550 West Deer Valley Road, Phoenix, Arizona 85027, website: www.cox.com . The facilities are complete to the lot lines. Costs to purchasers to receive this service include an installation charge of $9.95 (fast connect) or $24.95 (professional connect) and may require a minimum deposit of $60.00. Once service is established, direct user charges will apply. Fees and/or deposits are subject to change; please contact the utility company for further details.

Cox Communications, (623) 594-0505 ( www.cox.com ) is the Preferred Provider for Telecommunications Services for telephone, cable television and internet services.

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atural Gas : Southwest Gas Corporation, 10851 North Black Canyon Highway, Phoenix, Arizona, (602) 861-1999, web site: www.southwestgas.com . . The facilities are complete to the lot lines. Costs to purchasers to receive this service include a minimum deposit of $80.00, if required, and a service charge of $35.00 plus tax. Once service is established, direct user charges will apply. Fees and/or deposits are subject to change, please contact utility company for further details.

Water : City of Goodyear, 190 North Litchfield Road, Goodyear, Arizona, (623) 932-3015, website: www.ci.goodyear.az.us . The facilities are complete to the lot lines. Costs to purchasers include an activation fee of $50.00, and a security deposit of $100.00 may be required. Once service is established, direct user charges will apply. Monthly charges vary depending on usage. Fees and/or deposits are subject to change; please contact the utility company for further details.

Sewage Disposal : City of Goodyear, 190 North Litchfield Road, Goodyear, Arizona, (623) 932- 3015, website: www.ci.goodyear.az.us . The facilities are complete to the lot lines. Sewer base rate is approximately $10.00 depending on meter size. Fees and/or deposits are subject to change, please contact the utility provider for further details. Once service has been established, direct user charges will apply.

Garbage Services : City of Goodyear. Costs to purchasers are approximately $22.03 per month. Fees are subject to change; please contact the utility company for further details.

PURCHASERS ARE ADVISED TO COTACT THE ABOVE LISTED PROVIDERS REGARDIG EXTESIO RULES, REGULATIOS, SERVICE COECTIOS, ISTALLATIO CHARGES, ACCOUT SET-UP FEES AD THE COSTS IVOLVED. COSTS ARE SUBJECT TO CHAGE BY THE SERVICE PROVIDERS.

STREETS, ROADS AD DRAIAGE

Access to the Subdivision : The asphalt paved public streets have been completed to the minimum standards of the City of Goodyear and accepted by the City for maintenance. Costs to purchasers for maintenance are included in the property taxes.

Access within the Subdivision : The asphalt paved public streets have been completed to the minimum standards of the City of Goodyear and accepted by the City for maintenance. Costs to purchasers for maintenance are included in the property taxes.

Street Lights : Street lights are available. Costs to purchasers for electricity will be included in the homeowner’s property taxes.

Flood and Drainage : Subdivider has completed the typical street drainage and drainage easements. The City of Goodyear will maintain the typical street drainage and the Homeowners’ Association will maintain the drainage easements. Costs to purchasers for maintenance are included in the property taxes and Homeowners’ Association fees.

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Arizona State Trust Land: The Arizona State Land Department administers over 9.3 million acres of State Trust Land. This is not public land. Trust land may be subject to future development and may not be preserved or saved for open space without compensation.

A person must have prior approval to use State Trust Land. Temporary recreational use is allowed with certain restrictions and conditions through purchase of a recreational permit. Use of State Trust Land without proper approval is a trespass.

MANY ROADS ON RURAL TRUST LANDS ARE NOT LEGAL TRAVEL ROUTES, EXCEPT FOR STATE LESSEES AND HUNTERS, AND DO NOT PROVIDE LEGAL ACCESS TO PRIVATE LAND. STATE TRUST LAND MAY BE SOLD OR LEASED FOR USES WHICH MAY EXCLUDE RECREATION. RECREATION IS A TEMPORARY USE THAT MAY BE TERMINATED AT ANY TIME. For additional information, visit the State Land Department web page at www.land.state.az.us , or call (602) 542-4631.

LOCAL SERVICES AD FACILITIES

Schools :

Elementary : Liberty Elementary School, (Pre -K, K-8), (623) 327-2810, 19818 West Highway 85, Buckeye, Arizona, 85326, approximately 3 miles southwest of subdivision.

High School : Estrella Foothills High, (9-12), (623) 327-2470, 13033 South Estrella Parkway, Goodyear, Arizona, 85338, located approximately 5 ½ miles southeast of subdivision

School bus transportation will only be provided to students residing outside the schools designated walking distance. Purchasers should contact the schools to determine the availability of school bus transportation.

OTE: PURCHASERS ARE ADVISED THAT SCHOOL ASSIGMETS, SCHOOL BOUDARIES AD SCHOOL BUS TRASPORTATIO MAY CHAGE. PROSPECTIVE PURCHASERS SHOULD COTACT THE LIBERTY ELEMETARY SCHOOL DISTRICT #25 AT (623) 474-6600 OR VISIT THEIR WEBSITE AT www.liberty.k12.az.us AD BUCKEYE UIO HIGH SCHOOL DISTRICT #201 AT (623) 386-9700 OR VISIT THEIR WEBSITE AT www.buhsd.org FOR VERIFICATIO OF SCHOOLS, CURRET LOCATIO OF SCHOOLS AD BUS SERVICE. ADDITIOAL IFORMATIO REGARDIG SCHOOLS AD DISTRICTS CA BE FOUD AT THE FOLLOWIG WEBSITES: www.greatschools.net AD www.sfb.state.az.us .

Shopping Facilities : Safeway at Canyon Trails is located on the northwest corner of Estrella Parkway and Van Buren Street, approximately 5 miles northeast of subdivision. Estrella Crossroads is located on the northeast corner of Estrella Parkway and Van Buren Street,

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approximately 5 miles northeast of subdivision. Fry’s Food Store is located at Van Buren Street and Litchfield Road, approximately 6 miles northeast of subdivision.

Public Transportation : Valley Metro bus stop is located west of Dysart Road on Van Buren Street, Avondale, Arizona, approximately 7 miles northeast of the subdivision.

OTE: Bus routes and schedules are subject to change. For additional information, please contact the Valley Metro Transit System at (602) 253-5000, or visit the website at www.valleymetro.org .

Medical Facilities : West Valley Hospital is located at 13677 West McDowell Road, Goodyear, Arizona, (623) 882-1500, approximately 6 ½ miles northeast of the subdivision; West Valley Emergency Center is located at 140 North Litchfield Road, Goodyear, Arizona, (623) 245-6700, approximately 7 miles northeast of the subdivision.

Fire Protection : Provided by the City of Goodyear, with costs to purchasers included in the property taxes.

Ambulance Service : Ambulance service is available by dialing 911. Providers include, but are not limited to: Southwest Ambulance, located at 708 West Baseline Road, Mesa, Arizona 85210, (480) 655-9686, www.swambulance.com .

Police Services : Provided by the City of Goodyear.

LOCATIOS AD COSTS OF THE ABOVE SERVICES AD FACILITIES MAY CHAGE. YOU SHOULD VERIFY THEIR CURRET LOCATIOS AD COSTS PRIOR TO PURCHASE.

COMMO, COMMUITY AD RECREATIOAL FACILITIES

Within the Subdivision: Las Brisas Phase 1 consists of common area tract landscaping, carriage houses entry monuments, grapevine trellis fences and rusted steel agaves, varying sized concrete sidewalks, open space area lighting, one (1) large neighborhood park and three (3) additional neighborhood parks. The large neighborhood park located in Tract Q consists of a playground structure covered by a shade canopy, benches, bike racks, a large ramada with twelve (12) picnic tables, trash receptacles, barbeque grills, lighting, a sand volleyball court, two (2) horseshoe pits, two (2) full-sized basketball courts, a baseball field and a soccer field. The neighborhood park in Tract U consists of a playground structure covered by a shade canopy, a ramada with two (2) picnic tables, benches, trash receptacles, barbeques, lighting and large turf area. The neighborhood park in Tract F consists of a playground structure covered by a shade canopy, a ramada with two (2) picnic tables, benches, trash receptacles, bike racks, a barbeque, lighting and large turf area. The neighborhood park in Tract I consists of a playground structure covered by a shade canopy, ramada with two (2) picnic tables, trash receptacle, barbecue, seatwall, lighting, half-court basketball court, benches and large turf area which will then be

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maintained by the Homeowners’ Association. Costs to purchasers for maintenance are included in the Homeowners’ Association fees.

Within the Master Planned Community (Las Brisas Master Plan Community) : Las Brisas Phase 1 is the first phase in the larger Las Brisas Master Plan Community. The facilities located in subsequent phases are proposed and subject to change. Each phase is proposed to consist of common area tract landscaping, grapevine trellis fences and rusted steel agaves, entry monumentation, varying sized concrete sidewalks and open space area lighting. Las Brisas Phase 2A.1 is partially complete and has a neighborhood park consisting of a playground structure covered by a shade canopy, ramada, two (2) picnic tables, benches, trash receptacle, barbeque, lighting, half-court basketball court and large turf area. There is a proposed neighborhood park in Las Brisas Phase 2A.2 which may consist of a playground structure, ramada, picnic tables, benches, trash receptacle, bike rack, barbeque and large turf area. There are three (3) proposed neighborhood parks in Las Brisas Phase 2B which may contain a playground structure covered by a shade canopy, ramada, picnic tables, benches, barbeques, trash receptacles, bike rack, large turf area and/ or basketball court. There are two (2) proposed neighborhood parks in Las Brisas Phase 2C which may contain a playground structure covered by a shade canopy, ramada, picnic tables, benches, barbeques, trash receptacles, large turf area and/ or basketball court. Las Brisas Phase 2D is a proposed 5.2 acre park with playground structures, large ramada with picnic tables, benches, barbeque grills, two (2) full-court basketball courts, two (2) sand volleyball courts and a baseball field. Costs to purchasers for maintenance are included in the Homeowners’ Association fees.

Completion dates for Phases 2A, 2B, 2C and 2D are undetermined at this time and are proposed only and no warranty is given or implied that these improvements will be completed.

ASSURACES FOR COMPLETIO OF IMPROVMETS

Assurances for Completion of Subdivision Facilities: Subdivider advises that all subdivision improvements within Las Brisas Phase 1 have been completed. Completion dates for Phases 2A, 2B, 2C and 2D are undetermined at this time and are proposed only and no warranty is given or implied that these improvements will be completed.

Assurances for Maintenance of Subdivision Facilities : CC&Rs provide for the Homeowners’ Association to maintain all common areas. Utility companies to maintain their respective utilities. The City of Goodyear to maintain public streets.

PROPERTY OWERS ASSOCIATIOS

ame and Assessments : Las Brisas Community Association, with assessments in the amount of approximately $79.75 per month (or $239.25 per quarter).

Control of Association : Control of the Association will be turned over to lot purchasers on the happening of either of the following events, whichever occurs earlier:

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(i) When all of the Lots have been conveyed to Purchasers; or (ii) Twenty (20) years after the conveyance of the first Lot to a Purchaser; or (iii) When each Declarant and each Designated Builder notifies the Association in writing that it relinquishes its Class B membership.

Title to Common Areas : Title to common areas has been previously transferred to the Association.

Membership : All Lot Purchasers will be members of the Association.

PAYMETS TO PROPERTY OWERS ASSOCIATIOS ARE SUBJECT TO CHAGE I ACCORDACE WITH RECORDED RESTRICTIOS. SAID ASSOCIATIO MAY ALSO IMPOSE SPECIAL ASSESSMETS.

SUBDIVISIO CHARACTERISTICS

Topography : Land is relatively flat with a gentle surface slope downwards to the south.

Flooding and Drainage: Subdivider advises that this subdivision is not subject to any known flooding or drainage problems.

In his letter dated October 27, 2009, Warren C. Russell, P.E. with Goodwin & Marshall, Inc., states that:

“The Las Brisas, Phase 1 property is located in the City of Goodyear, generally located south of Lower Buckeye Road and east of Perryville Road.

The Flood Insurance Rate Map (FIRM) for Maricopa County, Arizona and incorporated areas, Map Number 04013C2065 H, dated September 30, 2005, indicates all of the Las Brisas, Phase 1 project to be within Zone “X” (shaded). Zone “X” is defined by FEMA as:

“Areas of 500-year flood; areas of 100 year flood with average depths of less than 1 foot or with drainage areas less than 1 square mile and areas protected by levees from 100-year flood.”

The on-site streets have been designed to convey the 5-year on-site flows within the curbs and the 100-year flows within the rights-of-way or drainage easements/tracts as required by the City of Goodyear.

Finished floor elevations have been designed to be at least 1 foot above the calculated 100-year water surface elevation in adjacent streets and flood plain.

According to the National Flood Insurance policy, flood insurance is not required for lot owners within The Las Brisas, Phase 1 development.”

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Soils: The soils in this subdivision are subject to low to moderate expansive potentials. Marvin J. Silva, Ph.D., P.E. and Donald J. Spadola, P.E. of GEC-SA&B in The Final Geotechnical Exploration Report Las Brisas Residential Development – Phase 1 and Phase 2 (Project No. 06- 0183.R01) dated July 11, 2006, state, in part:

5.3 Expansion Potential “…the existing surface and near surface soils (upper 1.5 feet plus) underlying the Site are primarily clayey sands, silty sands, clayey silty sands, sandy clayey silts, and sandy clays of variable no to medium plasticity. Based on the results of our laboratory expansion testing, and our experience with these types of soils, the majority of these soils are expected to exhibit low to moderate expansive potentials when compacted to relatively high densities at moisture contents below optimum... The expansive potentials of the clayey Site soils can be reduced by limiting their degree of compaction, by compacting and maintaining them at moisture contents above optimum, and/or by blending these soils with the Site soils which have lower expansion potentials.”

5.4 Foundations “Based on the results of our field exploration and laboratory testing, the surface and near surface soils beneath the Site were found to be variably moisture sensitive. In their present state, these natural surface and near surface soils were found to have variable low to moderate potentials for collapse when subjected to foundation loads and wetted. In addition, when the Site soils are compacted to typical construction densities at moisture contents below optimum, these Site soils are expected to exhibit variable low to moderate expansion potentials. Therefore, positive site drainage will be an important factor in the design and construction of the single-family residence on the Site.

Based on the results of our field exploration and laboratory testing efforts, we believe that single- family structures at the Site can be supported either by conventional shallow spread-type footings and non-reinforced concrete slabs or by post-tensioned concrete (PT) slab foundation systems… Regardless of the foundation system selected to support residential structures at the Site, all foundations should bear on compacted (engineered) fill.”

5.9 Surface Drainage “The majority of the shallow subsurface soils beneath the Site are sensitive to changes in moisture content. Therefore, providing positive drainage away from building walls and structure areas, and preventing the ponding of water near the residences are important factors that must be considered during the design, construction, and life of the individual residences at the Site.”

Adjacent Lands and Vicinity:

Las Brisas Phase 1: orth: Maricopa County R-43 (Rural 43, one acre per dwelling unit) South: City of Goodyear PAD (Planned Area Development) East: City of Goodyear PAD (Planned Area Development) West: Maricopa County R-43 (Rural 43, one acre per dwelling unit), Town of Buckeye PR (Planned Residential)

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OTE: Owners of the adjacent land described above may seek to rezone their property, may seek zoning variances for their property or may modify their site plan within existing zoning. Consequently, no assurance can be given that the zoning or uses for the adjacent lands will not change from that described above. For up-to-date information, purchasers should contact the City of Goodyear Planning & Zoning Department at 190 . Litchfield Road, Goodyear, Arizona 85338, (623) 932-3005, web site: www.ci.goodyear.az.us or Maricopa County Planning & Development Department at 501 . 44 th Street, Phoenix, Arizona 85008, (602) 506-7310, web site: www.maricopa.gov or Town of Buckeye Planning & Development Department at 530 E. Monroe Avenue, Buckeye, AZ 85326, (623) 349-6000, web site: www.buckeyeaz.gov .

orth: • County Land, adjacent • West Valley Church of Christ, adjacent • APS 69kV Transmission Line, approximately 1 mile • Roosevelt Irrigation District Canal, approximately 2 miles • APS 69kV Transmission Line, approximately 3 miles • Interstate 10 (Papago Freeway), approximately 3 miles • Arizona State Prison Complex at Perryville, approximately 3 miles

ortheast: • County Land, adjacent • APS 69kV Transmission Line, approximately 1 ¾ miles (running along Cotton Lane) • Canyon Trails Towne Center, approximately 2 ¼ miles • APS 69kV Transmission Line, approximately 2 ½ miles (running along Van Buren Street) • Future 303 alignment (Bob Stump Memorial Parkway), approximately 2 ½ miles • Fire Station, approximately 2 ¾ miles • Interstate 10 (Papago Freeway), approximately 3 ½ miles • Goodyear Ballpark and Recreational Complex, approximately 3 ½ miles • PADs and Shops (SEC of Yuma Road and Sarival Road), approximately 3 ¾ mile • Proposed Goodyear City Center (Estrella Parkway and Yuma Road), approximately 4 miles • APS 69kV Transmission Line, approximately 4 ½ miles (running along Thomas Road) • APS Pima 69kV Substation, approximately 4 ½ miles • Roosevelt Irrigation District Canal, approximately 4 ½ miles • City of Goodyear Booster Station and Water Storage Tank, approximately 4 ½ miles • City of Goodyear Aquifer Recharge Facility (NWC of Yuma Road and Estrella Parkway), approximately 4 ¾ miles • Post Office (Goodyear), approximately 5 miles • Parkway Village Center and Canyon Trails Professional Center (Estrella and Van Buren), approximately 5 miles • Law Enforcement Buildings, approximately 5 ¾ miles • APS Coldwater 69kV Substation, approximately 5 ¾ miles • Wal-Mart Supercenter (NEC of Estrella Parkway and Interstate10), approximately 6 miles • Estrella Falls Regional Mall ( Mall, NEC of Estrella Parkway and Interstate10), approximately 6 miles FORM P2 1/22/2009 14 LICENSE NO. DM10-055224 LAS BRISAS PHASE 1 AKA THE DISCOVERY COLLECTION AT LAS BRISAS AND THE ENCORE COLLECTION AT LAS BRISAS

• Goodyear Centerpointe power center, approximately 6 miles • City of Goodyear municipal buildings, approximately 6 miles • West Valley Hospital, approximately 6 ½ miles • Proposed APS 230kV Substation, approximately 6 ½ miles • West Valley Emergency Center, approximately 7 miles • Palm Valley Pavilions West (SunCor shopping center), approximately 7 miles • Arizona Motorsports Park, approximately 8 miles • Luke Air Force Base, approximately 8 miles

East: • APS 230kV Transmission Line, adjacent • APS 69kV Transmission Line, approximately 1 mile and approximately 2 miles • APS Sarival 69kV Substation, approximately 2 miles • Future 303 alignment (Bob Stump Memorial Parkway), approximately 2 miles • Aluminum Recycling Center (IMSAMET of Arizona), approximately 3 ½ miles • Arizona Galvanizing, approximately 3 ¾ miles • Phoenix-Goodyear Municipal Airport, approximately 4 miles • Loral Defense Systems Industrial Plant, approximately 4 ¼ miles • Bullard Wash, approximately 4 ½ miles • Union Pacific Railroad tracks, approximately 4 ¾ miles • Kinder Morgan Pipeline, approximately 4 ¾ miles • Southwest Gas Pipeline, approximately 4 ¾ miles • County Route 85, approximately 4 ¾ miles • Agua Fria River, approximately 6 miles • Lockheed Martin, approximately 6 miles

Southeast: • APS 500kV Transmission Line, approximately 1 ½ miles • Union Pacific Railroad Tracks, approximately 1 ½ mile • Kinder Morgan Pipeline, approximately 1 ½ mile • Southwest Gas Pipeline, approximately 1 ½ miles • County Route 85, approximately 1 ½ mile • Buckeye Canal, approximately 1 ½ miles • APS 230kV Transmission Line, approximately 1 ½ miles • Gila River, approximately 2 ½ miles • APS 69kV Transmission Line, approximately 2 ¾ miles • Goodyear Waste Water Treatment Plant, approximately 3 ¾ miles • Sierra Estrella Mountains, approximately 4 miles • Future Commercial 300 acres (Estrella Industrial Park), approximately 4 ¼ miles • Estrella Mountain Regional Park, approximately 4 miles • Patterson Laboratories, approximately 5 miles • Agua Fria River, approximately 5 ¾ miles • Phoenix International Raceway, approximately 8 miles

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South: • County Land, approximately ½ mile • APS 230kV Transmission Lines, approximately 1 mile • APS 500kV Transmission Lines, approximately 1 mile • Union Pacific Railroad tracks, approximately 1 mile • Kinder Morgan Pipeline, approximately 1 mile • Southwest Gas Pipeline, approximately 1 mile • Buckeye Canal, approximately 1 mile • County Route 85, approximately 2 ½ miles • Gila River, approximately 2 ½ miles

Southwest: • APS 230kV Transmission Lines, approximately ¾ mile • APS 500kV Transmission Lines, approximately ¾ mile • Union Pacific Railroad Tracks, approximately 1 ½ miles • Kinder Morgan Pipeline, approximately 1 ½ miles • Southwest Gas Pipeline, approximately 1 ½ miles • Buckeye Canal, approximately 1 ½ miles • County Route 85, approximately 3 ½ miles • Gila River, approximately 4 miles • Rubbermaid plant, approximately 4 ¼ miles

West: • APS 230kV Transmission Lines, adjacent • APS 230kV System Option & 1500’ corridor on west side of Perryville Road, adjacent • Leister Farms Hay Sales, approximately ½ mile • APS 69kV Transmission Line, approximately 1 mile • APS Perryville 69kV Substation, approximately 1 mile • APS Liberty 345/230kV Substation, approximately 2 miles • APS 230kV Transmission Lines, approximately 2 miles • APS 500kV Transmission Lines, approximately 2 miles • Proposed 230kv Substation, approximately 2 miles • Roosevelt Irrigation District Canal, approximately 4 miles

orthwest: • APS 69kV Transmission Lines, approximately 1 mile (along Jackrabbit Trail) • APS 69kV Transmission Lines, approximately 1 ¾ miles (along Yuma Road) • Roosevelt Irrigation District Canal, approximately 2 ½ miles • Interstate 10 (Papago Freeway), approximately 3 ½ miles • Luke Air Force Base Auxiliary Airfield (closed to public), approximately 3 ½ miles • Southwest Gas Pipeline, approximately 3 ½ miles • APS Tuthill 69kV Substation, approximately 4 ¼ miles

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Proposed Goodyear City Center: The City of Goodyear is proposing a 200-acre Goodyear City Center located at the intersection of Estrella Parkway and Yuma Road, approximately 4 miles northeast of subdivision. This future development may include entertainment, retail, governmental offices, professional offices, residential uses and mixed-use development opportunities. For more information, contact the City of Goodyear at (623) 932-3910 or visit their web site at www.ci.goodyear.az.us . SUBDIVIDER MAKES NO REPRESENTATION AS TO THE TIMING OF CONSTRUCTION OR OPENING OF THE CITY CENTER.

Goodyear Ballpark and Recreational Complex : The City of Goodyear Ballpark and Recreational Complex is located on a 3 acre parcel south of Yuma Road and east of Estrella Parkway (southeast of the future Goodyear City Center), approximately 3 ½ miles northeast of the subdivision. For additional information, contact the City of Goodyear at (623) 932-3910 or visit their web site at www.ci.goodyear.az.us .

Canyon Trails Towne Center (Vestar Development): Canyon Trails Towne Center is a commercial site located at the northeast corner of Yuma Road and Cotton Lane, approximately 2 ¼ miles northeast of subdivision. The center consists of 134-acres of retail commercial development which includes one or more “big box” anchor tenants, other major tenants, pads, and shops. For more information, please visit Canyon Trails Towne Center website at www.canyontrailstownecenter.com or contact the property manager at 602-866-0900. Purchasers may also contact Vestar at (602) 866-0900 or visit their web site at www.vestar.com ; or contact the City of Goodyear Planning and Zoning Department at (623) 932-3005, or visit their web site at www.ci.goodyear.az.us .

Shopping Centers: Estrella Falls Regional Mall (Westcor): Estrella Falls is located at Interstate 10 between Estrella Parkway and Bullard Avenue, approximately 6 miles northeast of subdivision. This mixed-use project of approximately 300 acres is being constructed in phases. Retail within The Market at Estrella Falls, a full-service power center, has opened. Future development to include a regional mall, restaurants, hotel, offices, and other retailers. For more information, please contact Westcor at (602) 953-6200, or visit their web site at www.westcor.com ; or visit the Estrella Falls website at www.estrellafalls.com . SUBDIVIDER MAKES NO REPRESENTATION AS TO THE TIMING OF CONSTRUCTION OR OPENING OF FUTURE SHOPPING CENTERS.

Goodyear Centerpointe Power Center (Evergreen Development): Goodyear Centerpoint is located across from Estrella Falls at McDowell and Pebble Creek Parkway, approximately 6 miles northeast of subdivision. The 30-acre retail power center is home to large retail businesses and restaurants. For more information please contact Evergreen Development at 602-808-8600 or visit their web site at www.evergreendev.com .

State Prison: Arizona State Prison Complex at Perryville is located at 2014 North Citrus Road, Goodyear, AZ 85338, approximately 3 miles north of the subdivision. Perryville Prison has an inmate capacity of 2,382 and is a modern, medium to high security prison. For more information contact the prison at (623) 853-0304 or visit the web site at www.azcorrections.gov.

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Phoenix-Goodyear Airport and Luke Air Force Base : Las Brisas is subject to attendant noise, vibrations, falling debris, dust, and all other effects that may be caused by overflights and by the operations of aircraft, including supercargo operations, landing at or taking off from the Phoenix- Goodyear Airport, approximately 4 miles east of subdivision, and Luke Air Force Base, approximately 8 miles northeast of subdivision.

Future Loop 303 : Purchasers are advised that the future Loop 303 alignment at Cotton Lane is approximately 2 miles east and 2 ½ miles northeast of the subdivision. Portions of Las Brisas are subject to attendant noise that may be caused by vehicular traffic on the future Loop 303 extension. For updated information regarding the future Loop 303, purchasers can visit MCDOT's Right Roads web site at www.rightroads.org or www.mcdot.maricopa.gov or contact MCDOT at (602) 506-8600.

Purchasers are advised that there are no assurances by Subdivider that the future Loop 303 will be completed. The completion and future use of such proposed locations are not within the Subdivider’s control.

Interstate 10 Freeway : Interstate 10 (Papago Freeway) is located approximately 3 miles north, approximately 3 ½ miles northeast, and approximately 3 ½ miles northwest of the subdivision. Portions of Las Brisas are subject to attendant noise that may be caused by vehicular traffic on Interstate 10. The close proximity of Interstate 10 may be a safety hazard to unsupervised children and adults, and may result in noise, dust, odors, traffic and other nuisances that may be of concern to some individuals.

Union Pacific Railroad : Union Pacific Railroad tracks lie approximately 4 ¾ miles east, approximately 1 ½ mile southeast, approximately 1 mile south and approximately 1 ½ miles southwest of the subdivision, Due to the proximity of the railroad, lot owners may experience traffic, vibrations, noise, dust, odors, train derailments, and other nuisances associated with these uses. The railroad may operate 24 hours a day, 7 days per week. Union Pacific Railroad has advised there are no pre-determined hours of operation. These areas may also pose safety hazards to unsupervised children and adults. Purchasers are encouraged to drive within the vicinity of the subdivision to determine whether there may exist additional items of concern. For further information, contact Union Pacific Railroad at (602) 322-2530, or visit the web site at www.uprr.com .

Pipelines : Two (2) gas pipelines are located within the Union Pacific Railroad track right-of- way approximately 4 ¾ miles east, approximately 1 ½ mile southeast, approximately 1 mile south and approximately 1 ½ miles southwest of subdivision. One (1) gas pipeline, which is used for delivering refined petroleum products from Tucson to Phoenix, is owned, operated and maintained by SFPP, L.P. and its principal, Kinder Morgan Energy Partners, L.P. ("Kinder Morgan") and the installation, operation and maintenance of the pipeline is under the sole control of Kinder Morgan. For more information, prospective purchasers should contact Kinder-Morgan at (713) 369-9000 or visit the web site at www.kindermorgan.com . The other gas pipeline, which is used for delivering natural gas, is owned, installed, operated and maintained by Southwest Gas Corporation. There is an additional Southwest Gas pipeline approximately 3-½ miles northwest of subdivision. For more information, please contact Southwest Gas at (602) 861-1999 or visit their web site at www.southwestgas.com . FORM P2 1/22/2009 18 LICENSE NO. DM10-055224 LAS BRISAS PHASE 1 AKA THE DISCOVERY COLLECTION AT LAS BRISAS AND THE ENCORE COLLECTION AT LAS BRISAS

As a result of natural gas facilities available to other lots within this subdivision, major natural gas lines in the vicinity of this community are necessary in order to service the surrounding areas. For further information regarding natural gas lines, purchasers should contact Southwest Gas Corporation at (602) 861-1999 or visit their website at www.swgas.com . Additional information may be obtained by contacting the Pipeline and Railroad Safety Department of the Arizona Corporation Commission at (602) 262-5601 or visit the Corporation Commission web site at www.azcc.state.az.us .

Industrial Businesses and Manufacturing Plants : Subdivision is located in an area that includes industrial businesses and manufacturing plants. Such businesses and manufacturing plants may produce noise, odors, dust, hazardous air pollutants or other potential nuisances or hazards. For more information, contact Maricopa County Environmental Services Department at (602) 506-6611.

Substations and Transmission Lines: Arizona Public Service (APS) Coldwater 69kV Substation is approximately 5 ¾ miles northeast of subdivision. APS Pima 69kV Substation is approximately 4 ½ miles northeast of subdivision. APS Sarival 69kV Substation is approximately 2 miles east of subdivision. APS Perryville 69kV Substation is approximately 1 mile west of subdivision. APS Liberty 345/230kV Substation is approximately 2 miles west of subdivision. APS Tuthill 69kV Substation is approximately 4 ¼ mile northwest of subdivision. Proposed APS 230kV Substations are approximately 6 ½ miles northeast of subdivision and approximately 2 miles west of subdivision. APS 230kV System Option & 1500’ corridor on the west side of Perryville Road is adjacent to the west of subdivision. APS 69kV Transmission Lines are approximately 1 mile north of subdivision, approximately 1 mile west of subdivision, approximately 3 miles north of subdivision, approximately 1 ¾ miles northeast of subdivision (running along Cotton Lane), approximately 4 ½ miles northeast of subdivision (running along Thomas Road), approximately 2 ½ miles northeast of subdivision (running along Van Buren Street), approximately 1 mile east of subdivision, approximately 2 miles east of subdivision, approximately 2 ¾ miles southeast of subdivision, approximately 1 mile northwest of subdivision (along Jackrabbit Trail) and approximately 1 ¾ miles northwest of subdivision (along Yuma Road). An APS 230kV Transmission Line runs east/west through Las Brisas. APS 230kV and 500kV Transmission Lines are approximately 1 ½ miles southeast of subdivision, approximately 1 mile south of subdivision, approximately ¾ mile southwest of subdivision, and approximately 2 miles west of subdivision. These power lines may create a concern of safety and health hazards to some individuals. Studies have shown that transmission lines may create health risks and may have financial or other adverse impacts on the homes or residents within the subdivision. Please note the size, nature, voltage, and location of such power lines and the addition of other power lines are not within Subdivider’s control and are subject to change. Purchaser is advised to independently investigate this matter. For further information, contact APS Customer Service Division at (602) 371-7171, or visit their web site at http://siting.aps.com .

High Voltage Lines: There is a 230kV System Option and 1,500 foot corridor on the west side of Perryville Road adjacent to the subdivision. There is a 230kV Transmission Line running east/west through Las Brisas. For further information regarding power lines, purchasers should contact APS Customer Service Division at (602) 371-7171, or visit their web site at http://siting.aps.com . FORM P2 1/22/2009 19 LICENSE NO. DM10-055224 LAS BRISAS PHASE 1 AKA THE DISCOVERY COLLECTION AT LAS BRISAS AND THE ENCORE COLLECTION AT LAS BRISAS

IFORMATIO O A PROPOSED OR EXISTIG TRASMISSIO LIE AD SUBSTATIO MAY BE AVAILABLE FROM THE ARIZOA CORPORATIO COMMISSIO OR FROM THE UTILITY COMPAY. I ADDITIO TO THE ABOVE DISCLOSED IFORMATIO, BUYER SHOULD COTACT THE UTILITY COMPAY FOR FURTHER AVAILABLE IFORMATIO WHICH MAY ICLUDE STRUCTURE HEIGHTS, SCHEMATICS OF WHAT THE STRUCTURES WILL LOOK LIKE AD COSTRUCTIO SCHEDULES.

Agricultural : Property adjacent to or in the vicinity of the subdivision is currently or historically has been agricultural. Agricultural property may be subject to chemical treatment, including aerial spraying of chemicals, defoliants, pesticides and fertilizers, and the use of farm equipment, which may produce dust, chemicals and particles in the air, unpleasant odors and noise. Irrigation ditches on surrounding properties may pose a safety hazard to unsupervised children and adults.

Livestock : Livestock and other farm animals are present in the vicinity of the subdivision. Activities associated with livestock and other farm animals operations may produce noise, unpleasant odors and insects.

Canals : Roosevelt Irrigation District Canal is located approximately 2 miles north, approximately 4 ½ miles northeast, approximately 4 miles west and approximately 2 ½ miles northwest of subdivision. Buckeye Canal is located approximately 1 ½ mile southeast, approximately 1 mile south and approximately 1 ½ mile southwest of subdivision. Purchasers are advised that dams, dykes, canals, creek, rivers, floodways, and washes may be hazardous to unsupervised children and adults. Purchasers are advised to independently investigate this matter. For further information, please contact the Flood Control District of Maricopa County at (602) 506-1501 or visit the web site at www.fcd.maricopa.gov .

Bullard Wash : This is a joint project between the City of Goodyear and the Flood Control District. Bullard Wash is included within the Loop 303 Corridor/White Tanks Area Drainage Master Plan (ADMP), which recommends improvements be made to the wash. Phase I of the Bullard Wash Improvements Project has already been completed and included construction of an earthen and gabion basket -lined channel from the Gila River to Lower Buckeye Road. Phase II includes an earthen/greenbelt channel along the Bullard Wash alignment, which is located between Estrella Parkway and Bullard Avenue, from Lower Buckeye Road to Interstate 10. High storm flows from Bullard Wash south of McDowell Road will be diverted to a detention basin. Additional detention basins north of Interstate 10 collect storm flow from the north, with an outlet to the Agua Fria River. Landscaping, fencing and other multi-use facilities are anticipated along the channel alignment and within the basins. The project will channelize the floodplain north of the Phoenix-Goodyear Airport. It will reduce the floodplain width and protect the Phoenix-Goodyear Airport and nearby development from flooding. For the area north of Interstate 10, the project will collect and convey storm-water currently draining by sheet flow to Bullard Wash. This storm water would otherwise collect in streets, businesses, farm fields, and residential areas. For more information, contact Flood Control District of Maricopa County at (602) 506-1501. You may also visit the project specific web site at www.fcd.maricopa.gov . Due to the proximity of Bullard Wash to the subdivision, it may be a safety hazard to unsupervised children and adults. FORM P2 1/22/2009 20 LICENSE NO. DM10-055224 LAS BRISAS PHASE 1 AKA THE DISCOVERY COLLECTION AT LAS BRISAS AND THE ENCORE COLLECTION AT LAS BRISAS

Views: Views and/or scenes that may be visible from particular portions of the community or any of its lots will change over time and may be wholly or partially obstructed as development activity continues and landscape matures.

Termites: Prior to pouring finished floors, each home will be treated for termites with certain chemicals, as permitted by law. The termite protection warranty that is provided with the home does not guarantee that termite infestation will not occur during the warranty period. The chemicals dissipate over time and other events may occur that will require the home to be retreated. Certain actions to the home, such as excessive watering and landscaping around the foundation of the home, may void the warranty.

Scorpions and Other Pests: Cockroaches, snakes, black widow spiders, scorpions and other pests and animals are common in parts of Arizona. Fortunately, most pests can be controlled with pesticides. Scorpions, on the other hand, may be difficult to eliminate. Purchasers with concerns should seek the advice of a pest control company. If these or any other creatures are a concern, purchaser may contact the Maricopa County Extension Service at (602) 942-3000, or visit their website at www.desertusa.com .

Construction Traffic: During the construction of additional roads, widening of existing roads, construction of houses, and construction of future phases in Las Brisas, additional vehicle traffic (including heavy construction vehicles), dust, noise (including construction noise in the early mornings), etc. may exist.

Model Homes: Lots situated adjacent to or in the vicinity of the model homes may experience an additional amount of noise, lighting, signage, and vehicular and pedestrian traffic typically associated with such activities.

PURCHASER IS ADVISED THAT HOMES SITUATED ADJACET TO OR I THE VICIITY OF COMMERCIAL PROPERTY, MULTI-FAMILY SITES, WORSHIP SITES, SCHOOL SITES, STREETS, FREEWAYS, PARKWAYS, ROADWAYS, TRAILS, OPE SPACE AREAS, COSTRUCTIO-RELATED OPERATIOS, IDUSTRIAL PROPERTIES, PROVIG GROUD, MIIG OPERATIOS, ETERTAIMET VEUES, PARKS, CORRECTIOAL FACILITIES, AGRICULTURAL AREAS, OTHER O-RESIDETIAL USES, AD/OR OTHER RECREATIO AMEITIES MAY EXPERIECE A ADDITIOAL AMOUT OF OISE, DUST, LIGHTIG, AD SIGAGE, AS WELL AS PEDESTRIA AD VEHICULAR TRAFFIC TYPICALLY ASSOCIATED WITH SUCH FACILITIES.

Subdivider has used its best efforts in an attempt to disclose all noteworthy activities and conditions surrounding this subdivision using the resources reasonably available to developer at the time this Public Report was prepared. This information may change from time to time. Prospective purchasers are encouraged to (i) drive the areas surrounding the subdivision (at different times of the day) to determine whether there exists any activities or conditions that may be of concern to Purchaser and (ii) determine to Purchaser’s own satisfaction whether or not the items mentioned in the Public Report or discovered by Purchaser’s own inspections are of concern to Purchaser.

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SUBDIVISIO USE AD RESTRICTIOS

Use : This offering is for improved lot (with dwelling).

“Improved lot or parcel” means a lot or parcel of a subdivision upon which lot or parcel there is a residential, commercial or industrial building or concerning a contract that has been entered into between a subdivider and a purchaser that obligates the subdivider directly or indirectly through a building contractor, to complete construction of a residential, commercial or industrial building on the lot or parcel within two years from the date on which the contract of sale for the lot is entered into.

Zoning: Single family residential.

Conditions, Reservations and Restrictions : As stated in the recorded Declaration of Covenants, Conditions and Restrictions, and as stated in the Articles of Incorporation and Bylaws of the Homeowners’ Association, existing zoning and any other effects resulting from Schedule B items as shown on the Title Report.

PURCHASERS ARE ADVISED THAT THE RECORDED DECLARATIO OF COVEATS, CODITIOS AD RESTRICTIOS FOR THIS SUBDIVISIO PROVIDES FOR A ARCHITECTURAL COTROL COMMITTEE.

Restrictions and Other Matters of Record: Conditions, reservations and restrictions that may run with the land including City or County zoning restrictions should be investigated by you. Copies of those items which are recorded may be inspected at the Office of the Maricopa County Recorder. Information about zoning may be obtained at the Office of the City of Goodyear Planning and Zoning Department. Restrictions are recorded as cited in the following title exceptions and per the subdivision plat.

AIRPORTS

Military Airport: Luke Air Force Base ("AFB") is located at 13960 West Eagle Street, Glendale, Arizona, approximately 8 miles northeast of the subdivision. Over 200 missions a day are flown by the jets and joint strike fighters maintained at the AFB. In 2000, the AFB renewed their 25-year lease for "practice grounds" in Southern Arizona. Additional information may be obtained from the AFB Public Affairs Specialist at (623) 856-5997 or (623) 856-5853 or the AFB Community Planner at (623) 856-4736 or their web site at www.luke.af.mil .

NOTE: The AFB is an active military base with all of the activities involved with a military base. Prospective purchasers are advised to investigate for themselves to determine what impact, if any, the AFB may have on the subdivision and/or their personal well-being.

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SUBDIVISIO IS LOCATED WITHI TERRITORY I THE VICIITY OF LUKE AIR FORCE BASE. MILITARY FLIGHTS MAY PRODUCE AIRCRAFT OISE AS A RESULT OF MILITARY FLIGHT OPERATIOS.

Public Airport: Phoenix-Goodyear Airport is located at 1658 South Litchfield Road, Goodyear, Arizona, approximately 4 miles east of the subdivision. Additional information may be obtained from the airport at (623) 932-1200 or by visiting their web site at http://phoenix.gov/goodyearairport/index.html .

THE DEVELOPMENT IS LOCATED WITHIN THE TRAFFIC PATTERN AIRSPACE OF A PUBLIC AIRPORT AND IS SUBJECT TO OVERFLIGHTS, INCLUDING SUPER CARGO OPERATIONS, AND POSSIBLE NOISE INTRUSION, VIBRATIONS, FALLING DEBRIS, DUST OR OTHER INTRUSIONS AS A RESULT OF FLIGHT OPERATIONS.

SUBDIVISIO IS LOCATED WITHI TERRITORY I THE VICIITY OF PHOEIX GOODYEAR AIRPORT. FLIGHTS MAY PRODUCE AIRCRAFT OISE AS A RESULT OF FLIGHT OPERATIOS.

Airport: Glendale Airport is located at 6801 North Glen Harbor Boulevard, Glendale, Arizona, (623) 930-2000, www.glendaleaz.com/airport , approximately 15 miles northeast of the subdivision. Phoenix Sky Harbor International Airport is located at 3400 East Sky Harbor Boulevard, Phoenix, Arizona, (602) 273-3300, www.skyharbor.com , approximately 30 miles northeast of the subdivision.

Las Brisas is subject to attendant noise, vibrations, dust and all other effects that may be caused by overflight and by the operation of aircraft landing at, or taking off from, Luke Air Force Base and/or the Phoenix-Goodyear Airport.

TITLE

Title to this subdivision is vested in Taylor Morrison/Arizona, Inc., an Arizona corporation formerly known as Taylor Woodrow/Arizona, Inc., an Arizona corporation.

Subdivider’s interest in this subdivision is evidenced by a Memorandum of Rolling Option Agreement, recorded at Document No. 2010-032629.

Subdivider’s only interest in the Subdivision is a right to purchase Lots pursuant to the described Rolling Option Agreement. The purchaser’s have no assurance that Subdivider will purchase or build homes on all the Subdivision Lots.

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Title is subject , among other things, to all taxes, assessments, covenants, conditions, restrictions, limitations, reservations, rights, obligations, powers, easements, rights of way, liens, and charges of record. YOU SHOULD IVESTIGATE THE TITLE AD SATISFY YOURSELF AS TO WHAT EFFECT, IF AY, THESE MATTERS MAY HAVE O THE USE OF THE LAD . Title exceptions affecting the condition of title are listed in the Preliminary Title Report dated February 4, 2010 issued by FIRST AMERICAN TITLE INSURANCE COMPANY. You should obtain a title report and determine the effect of the listed exceptions .

EXCEPTIOS: SEE EXHIBIT “B” ATTACHED

METHOD OF SALE OR LEASE

Sales : Your vested interest/ownership in the property will be evidenced by the Subdivider delivering a recorded Special Warranty Deed to you and by your signing a Promissory Note and Mortgage or Deed of Trust for the unpaid balance. You should read these documents before signing them.

Cash sales are permitted. Purchaser’s deposits and earnest monies will be deposited into Seller’s general account and can be used by Seller prior to the close of escrow.

PROSPECTIVE PURCHASERS ARE ADVISED THAT EAREST MOEY DEPOSITS, DOW PAYMETS AD OTHER ADVACED MOEY WILL OT BE PLACED I A EUTRAL ESCROW. THIS MOEY WILL BE PAID DIRECTLY TO THE SELLER AD MAY BE USED BY THE SELLER. THIS MEAS THE PURCHASER ASSUMES A RISK OF LOSIG THE MOEY IF THE SELLER IS UABLE OR UWILLIG TO PERFORM UDER THE TERMS OF THE PURCHASE COTRACT.

Use and Occupancy : Purchasers be able to use and occupy their lot upon close of escrow and recordation of Special Warranty Deed.

Leasehold Offering : Will any of the property be leased? Yes No

THE PURCHASE COTRACT IS A BIDIG AGREEMET. COTRARY TO THE TERMS AD PROVISIOS OF THE COTRACT, YOU MAY HAVE ADDITIOAL RIGHTS, REMEDIES AD WARRATIES PROVIDED BY LAW. READ THOROUGHLY BEFORE SIGIG. IF OT UDERSTOOD, SEEK COMPETET ADVICE PRIOR TO COMMITMET TO PURCHASE.

FORM P2 1/22/2009 24 LICENSE NO. DM10-055224 LAS BRISAS PHASE 1 AKA THE DISCOVERY COLLECTION AT LAS BRISAS AND THE ENCORE COLLECTION AT LAS BRISAS

TAXES AD ASSESSMETS

Real Property Taxes : The combined primary and secondary property tax rate for this subdivision for the year 2009 is 9.4817 per $100.00 assessed valuation. The estimated property tax for an improved lot (lot with dwelling), based on the above tax rate and average sales price of approximately $147,500.00 (Discovery Collection) and approximately $143,000.00 (Encore Collection), is approximately $1,188.77 (Discovery Collection) and approximately $1,152.50 (Encore Collection).

Special District Tax or Assessments :

Central Arizona Groundwater Replenishment District (“CAGRD”) The subdivision is part of the Member Service Area of the Central Arizona Groundwater Replenishment District (“CAGRD”) pursuant to A.R.S. §48-3774. The CAGRD is obligated by statute to replenish the groundwater served to its members. The CAGRD is managed and operated by the Central Arizona Water Conservation District (“CAWCD”), which manages and operates the Central Arizona Project. The CAGRD collects assessments, set each year by the CAWCD Board, based on the estimated cost of performing the CAGRD’s groundwater replenishment obligations. In the event that City of Goodyear would not be able to supply the water necessary for this subdivision, there may a future assessment by CAGRD to pay the replenishment obligations. In this event, each resident may be required to pay an assessment, which would then be set forth and included in the home’s annual property tax statement and collected by the Maricopa County Treasurer’s Office. This potential, future assessment amount is not included in the tax estimates given above. The assessment is based upon the assessment rate established by the CAWCD Board in the event the City of Goodyear ceases to provide water, and actual water consumption reported by the water provider, so the actual assessment amount will vary. Furthermore, HOA common area tracts may be subject to CAGRD assessments and such assessments could affect the HOA dues. For further information, you may contact the CAGRD at 623-869-2380 or visit their website at www.cagrd.com .

As disclosed in the Homeowners’ Association documents (i.e., CC&Rs, Articles of Incorporation and Bylaws), there may be other special assessments, taxes or fees to be paid by purchaser. Please refer to Homeowners’ Association documents for additional information.

AMOUT OF TAXES AD ASSESSMETS SET FORTH ABOVE ARE APPROXIMATE OLY AD SUBJECT TO CHAGE.

YOU ARE ADVISED TO READ THE RECORDED DECLARATIO OF COVEATS, CODITIOS AD RESTRICTIOS, ARTICLES OF ICORPORATIO AD BYLAWS FOR THIS SUBDIVISIO TO DETERMIE THE RIGHTS OF LOT OWERS TO PARTICIPATE I THE COTROL OF THE PROPERTY OWERS’ ASSOCIATIO AD TO DETERMIE THE RIGHTS, DUTIES AD LIMITATIOS OF OWERS I AD TO USE OF THEIR LOT. FURTHER, YOU SHOULD DETERMIE FOR YOURSELF IF SUBDIVIDER’S ARRAGEMETS AD PLAS FOR THE PAYMET OF ASSESSMETS O USOLD LOTS WILL BE SUFFICIET

FORM P2 1/22/2009 25 LICENSE NO. DM10-055224 LAS BRISAS PHASE 1 AKA THE DISCOVERY COLLECTION AT LAS BRISAS AND THE ENCORE COLLECTION AT LAS BRISAS

TO FULFILL THE EEDS, DEMADS AD FIACIAL OBLIGATIOS OF THE ASSOCIATIO, AS SET FORTH I THE DECLARATIO AD BYLAWS.

FORM P2 1/22/2009 26 LICENSE NO. DM10-055224 LAS BRISAS PHASE 1 AKA THE DISCOVERY COLLECTION AT LAS BRISAS AND THE ENCORE COLLECTION AT LAS BRISAS

EXHIBIT “A”

BELLRD

GREENWAYRD

303 WADDELLRD

S

N ÷ø

I

A CACTUSRD

T

N U

O PEORIAAVE M

OLIVE AVE

K N

A NORTHERNAVE T

GLENDALEAVE

E BETHANY HOMERD IT H 101 W

UHL RD TUTHILL CAMELBACKRD÷ø E

INDIANSCHOOLRD ALSUPAV

THOMASRD LRD

I McDOWELL RD RD RA LDRD D T T E -,. 10 EEMSRD RIVALRD BULLARDAVE DYSAR

115THAVE VANBURENST 107THAVE ELMIRAGERD LITCHFI R A PERRYVILLERD CITRUSRD COTTONLN S AIRPORTR ACKRABBIT J

N

SCALE: 1"=18,000' Legend AIRPORT VICINITY MAP FORLUKE AIR FORCE BASE LUKE AFB BOUNDARY CLEAR ZONE MAJOR FLIGHT TRACKS TERRITORY IN THE VICINITY OF A MILITARYAIRPORT ACCIDENT POTENTIAL ZONE1 HIGH NOISE OR ACCIDENT POTENTIAL ZONE THIS MAPFULFILLSTHESTATUTORY REQUIREMENTSUNDERARIZONAREVISED NOISE CONTOURS ACCIDENT POTENTIAL ZONE2 STATUTE28-8482AND8483 ASOF 20020628 * LINE WIDTHSAREGRAPHIC REPRESENTATIONS ONLY

FORM P2 1/22/2009 27 LICENSE NO. DM10-055224 LAS BRISAS PHASE 1 AKA THE DISCOVERY COLLECTION AT LAS BRISAS AND THE ENCORE COLLECTION AT LAS BRISAS

EXHIBIT “B”

1. Any charge upon said land by reason of its inclusion in Las Brisas Community Association.

2. Any charge upon said land by reason of its inclusion in Roosevelt Irrigation District.

3. Easements, restrictions, reservations, conditions and set-back lines as set forth on the plat recorded as Book 886 of Maps, Page 39, but deleting any covenant, condition or restriction indicating a preference, limitation or discrimination based on race, color, religion, sex, handicap, familial status or national origin to the extent such covenants, conditions or restrictions violate 42 USC 3604(c).

4. Easements, restrictions, reservations, conditions and set-back lines as set forth on the plat recorded as Book 23 of Maps, Page 19, but deleting any covenant, condition or restriction indicating a preference, limitation or discrimination based on race, color, religion, sex, handicap, familial status or national origin to the extent such covenants, conditions or restrictions violate 42 USC 3604(c).

5. Covenants, conditions and restrictions in the document recorded as 2010- 0114144 of Official Records, but deleting any covenant, condition or restriction indicating a preference, limitation or discrimination based on race, color, religion, sex, handicap, familial status, or national origin, to the extent such covenants, conditions or restrictions violate Title 42, Section 3604(c), of the United States Codes.

NOTE: Although the instrument(s) cited above were recorded subsequent to the date of this report, it is included herein based upon a copy furnished by the County Recorder's Office and DOES OT CHAGE THE SEARCH DATE OF THIS REPORT .

6. The terms, conditions and provisions contained in the document entitled "Development Agreement" recorded April 17, 2006 as Instrument No. 2006-0513228, of Official Records.

(This item will be removed from policies issued to consumer purchasers and their lenders).

7. An easement for electric lines and incidental purposes, recorded as Book 68 of Miscellaneous, Page 204.

8. An easement for electric lines and incidental purposes, recorded as Instrument No. 86-201803, of Official Records.

9. An easement for canals, ditches and laterals and incidental purposes, recorded as Instrument No. 87-467919, of Official Records. FORM P2 1/22/2009 28 LICENSE NO. DM10-055224 LAS BRISAS PHASE 1 AKA THE DISCOVERY COLLECTION AT LAS BRISAS AND THE ENCORE COLLECTION AT LAS BRISAS

10. An easement for canals, ditches and laterals and incidental purposes, recorded as Instrument No. 87-467920, of Official Records.

11. An easement for access and utilities and incidental purposes, recorded as Instrument No. 2000-525421, of Official Records.

12. An easement for public utilities and incidental purposes, recorded as Instrument No. 2007-0259514, of Official Records.

13. An Option Agreement by and between Taylor Morrison/ Arizona, Inc., an Arizona corporation, as Optionor, and TM Homes of Arizona, Inc., an Arizona corporation, as Optionee, dated January 13, 2010, recorded January 14, 2010 as 2010- 0032629 of Official Records.

14. Water rights, claims or title to water, whether or not shown by the public records.

NOTE: There are no further matters of record concerning this subdivision through the date of this report.

FORM P2 1/22/2009 29