PUBLIC TRANSPORTATION: Dial-A-Ride (cab-like transportation system) charges $.50 for rides anywhere within the city limits of Orange.

SCHOOLS: The Orange Unified School District has furnished information of the nearest schools, distances to the most remote lot, availability of school bus transportation, and bus charges, as indicated:

NOTE: This school information was provided by the school district prior to issuance of the public report. Purchasers may contact the local school district office for any changes in school assignments, facilities and bus service.

For further information in regard to this subdivision you may call (213) 620-2700 or examine the documents at the Department of Real Estate, 107 South Broadway, Room 7001, Los Angeles, California 90012.

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Page 4 of 4 Pages

File No. 41400 LA

This Report Is Not a Recommendation or Endorsement of the Subdivision
But Is Informative Only.

Buyer or Lessee Must Sign That He Has Received and Read This Report.

This Report Expires on Date Shown Above. If There Has Been a Material Change in the Offering, an Amended Public Report Must Be Obtained and Used in Lieu of This Report.

Section 35700 of the California Health and Safety Code provides that the practice of discrimination because of race, color, religion, sex, marital status, national origin or ancestry in housing accommodations is against public policy.

Under Section 125.6 of the California Business and Professions Code, California real estate licensees are subject to disciplinary action by the Real Estate Commissioner if they make any discrimination, distinction or restriction in negotiating a sale or lease of real property because of the race, color, sex, religion, ancestry or national origin of the prospective buyer. If any prospective buyer or lessee believes that a licensee is guilty of such conduct, he or she should contact the Department of Real Estate.

Information Regarding Schools can be found on Page s 6 and 7 of this report.

READ THE ENTIRE REPORT on the following pages before contracting to purchase a lot in this SUBDIVISION.

COMMON INTEREST SUBDIVISION GENERAL INFORMATION

The project described in the attached Subdivision Public Report is known as a common-interest subdivision. Read the Public Report carefully for more information about the type of subdivision. The subdivision includes common areas and facilities which will be owned and/or operated by an owners' association. Purchase of a lot or unit automatically entitles and obligates you as a member of the association and, in most cases, includes a beneficial interest in the areas and facilities. Since membership in the association is mandatory, you should be aware of the following information before you purchase:

Your ownership in this development and your rights and remedies as a member of its association will be controlled by governing instruments which generally include a Declaration of Restrictions (also known as CC&R's), Articles of Incorporation (or association) and Bylaws. The provisions of these documents are intended to be, and in most cases are, enforceable in a court of law. Study these documents carefully before entering into a contract to purchase a subdivision interest.

board. In short, “they” in a common-interest subdivision is "you". Unless you serve as a member of the governing board or on a committee appointed by the board, your control of the operation of the common areas and facilities is limited to your vote as a member of the association. There are actions that can be taken by the governing body without a vote of the members of the association which can have a significant impact upon the quality of life for association members.

In order to provide funds for operation and maintenance of the common facilities, the association will levy assessments against your lot/unit. If you are delinquent in the payment of assessments, the association may enforce payment through court proceedings or your lot/unit may be liened and sold through the exercise of a power of sale. The anticipated income and expenses of the association, including the amount that you may expect to pay through assessments, are outlined in the proposed budget. Ask to see a copy of the budget if the subdivider has not already made it available for your examination.

A homeowner association provides a vehicle for the ownership and use of recreational and other common facilities which were designed to attract you to buy in this subdivision. The association also provides a means to accomplish architectural control and to provide a base for homeowner interaction on a variety of issues. The purchaser of an interest in a common-interest subdivision should contemplate active participation in the affairs of the association. He or she should be willing to serve on the board of directors or on committees created by the

Until there is a sufficient number of purchasers of lots or units in a common-interest subdivision to elect a majority of the governing body, it is likely that the subdivider will effectively control the affairs of the association. It is frequently necessary and equitable that the subdivider do so during the early stages of development. It is vitally important to the owners of individual subdivision interests that the transition from subdivider to resident-owner control be accomplished in an orderly manner and in a spirit of cooperation.

When contemplating the purchase of a dwelling in a common-interest subdivision, you should consider factors beyond the attractiveness of the dwelling units themselves. Study the governing instruments and give careful thought to whether you will be able to exist happily in an atmosphere of cooperative living where the interests of the group must be taken into account as well as the interests of the individual. Remember that managing a common-interest subdivision is very much like governing a small community.. the management can serve you well, but you will have to work for its DRE

success.

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FILE NO. 40137

SPECIAL NOTES

THIS PROJECT IS A CONDOMINIUM. IT WILL BE OPERATED BY AN UNINCORPORATED OWNERS ASSOCIATION. THE ASSOCIATION HAS THE RIGHT TO LEVY ASSESSMENTS AGAINST YOU FOR MAINTENANCE OF THE COMMON AREAS AND OTHER PURPOSES. YOUR CONTROL OF OPERATIONS AND EXPENSES IS NORMALLY LIMITED TO THE RIGHT OF YOUR ELECTED REPRESENTATIVES TO VOTE ON CERTAIN PROVISIONS AT MEETINGS.

SINCE THE COMMON PROPERTY AND FACILITIES WILL BE MAINTAINED BY AN ASSOCIATION OF HOMEOWNERS, AND IT IS ESSENTIAL THAT THIS ASSOCIATION BE FORMED EARLY AND PROPERLY, THE DEVELOPER MUST:

1) PAY ALL THE MONTHLY ASSESSMENTS WHICH HE OWES TO THE HOMEOWNERS ASSOCIATION FOR UNSOLD UNITS THE PAYMENTS MUST COMMENCE IMMEDIATELY AFTER SUBDIVIDER CLOSES FIRST SALE (Regulations 2792.9 and 2792.16).

-

THE HOMEOWNER ASSOCIATION MUST:

2) CAUSE THE FIRST ELECTION OF THE ASSOCIATION'S GOVERNING BODY TO BE HELD WITHIN 45 DAYS AFTER 51% SELL-OUT, OR IN ANY EVENT, NO LATER THAN SIX MONTHS AFTER CLOSING THE FIRST SALE. (Regulations 2792.17 and 2792.19); AND

3) PREPARE AND DISTRIBUTE TO ALL HOMEOWNERS A BALANCE SHEET AND INCOME STATEMENT. (Regulation 2792.22).

THE SUBDIVIDER HAS STATED THAT HE WILL PROVIDE YOU WITH A COPY OF THE RESTRICTIONS AND BYLAWS, BY POSTING THEM IN A PROMINENT LOCATION IN THE SALES OFFICE AND FURNISHING YOU COPIES PRIOR TO CLOSE OF ESCROW. THESE DOCUMENTS CONTAIN NUMEROUS MATERIAL PROVISIONS THAT SUBSTANTIALLY AFFECT AND CONTROL YOUR RIGHTS, PRIVILEGES, USE, OBLIGATIONS, AND COSTS OF MAINTENANCE AND OPERATION. YOU SHOULD READ AND UNDERSTAND THESE DOCUMENTS BEFORE YOU OBLIGATE YOURSELF TO PURCHASE A UNIT.

THE SUBDIVIDER STATED HE WILL FURNISH THE CURRENT BOARD OF OFFICERS OF
THE HOMEOWNER ASSOCIATION THE BUILDING PLANS TO INCLUDE DIAGRAMS OF LO-
CATION OF MAJOR COMPONENTS, UTILITIES AND RELATED DATA. THESE ITEMS
WILL BE IMPORTANT TO THE BOARD OF OFFICERS OR THOSE WHO WILL MANAGE OR
REPAIR COMMON FACILITIES IN THIS SUBDIVISION.

THE SUBDIVIDER OF THIS PROJECT HAS INDICATED THAT HE INTENDS TO SELL ALL
OF THE UNITS IN THIS PROJECT. HOWEVER, ANY OWNER, INCLUDING THE SUBDI-
VIDER, HAS A LEGAL RIGHT TO LEASE THE UNITS. PROSPECTIVE PURCHASERS SHOULD
CONSIDER THE POSSIBLE EFFECTS ON THE DEVELOPMENT IF A SUBSTANTIAL PORTION
OF THE UNITS BECOME RENTAL PROPERTIES.

IF YOU PURCHASE TWO OR MORE UNITS THE SELLER IS REQUIRED TO NOTIFY THE REAL ESTATE COMMISSIONER OF THE SALE. IF YOU INTEND TO SELL A UNIT OR LEASE A UNIT FOR MORE THAN ONE YEAR, YOU ARE REQUIRED TO OBTAIN AN AMENDED SUBDIVISION FUBLIC REPORT BEFORE YOU CAN OFFER THE UNITS FOR SALE OR LEASE.

WARNING:

WHEN YOU SELL YOUR CONDOMINIUM UNIT TO SOMEONE ELSE, YOU MUST
GIVE THAT PERSON A COPY OF THE DECLARATION OF RESTRICTIONS, THE
ARTICLES OF INCORPORATION, AND OF THE BYLAWS. IF YOU FORGET TO
DO THIS, IT MAY COST YOU A PENALTY OF $500.00 -- PLUS ATTORNEY'S
FEES, PLUS DAMAGES. (SEE CIVIL CODE SECTION 1360).

TAXES: MOST OF THE SERVICES FURNISHED TO OWNERS AND OCCUPANTS OF SUBDIVISION PROPERTIES BY COUNTIES, CITIES AND LOCAL DISTRICTS HAVE IN THE PAST BEEN FINANCED WHOLLY OR IN PART FROM PROPERTY TAX REVENUES. FROPOSITION 13 (JARVIS-GANN INITIATIVE) SEVERELY LIMITS THE AMOUNT OF MONEY AVAILABLE TO LOCAL GOVERNMENT THROUGH PROPERTY TAXATION. AS A RESULT, IT MAY BE NECESSARY FOR LOCAL GOVERNMENT TO ELIMINATE OR CURTAIL SERVICES THAT HAVE BEEN PROVIDED IN THE PAST. IT IS NOT PRESENTLY POSSIBLE TO PREDICT THE LEVEL OF ANY SERVICE TO BE PROVIDED TO THIS SUBDIVISION BY LOCAL GOVERNMENT. INTERESTS TO BE CONVEYED: You will receive fee title to a specified unit, together with an undivided fractional fee interest as a tenant in common in the common area together with a membership in Park Vista II Association and rights to use the common

area.

Approximately 0.73 acres on which 1 building containing 18 units and 36 carports will be constructed, together with common facilities consisting of pool, jacuzzi, recreation room with dressing rooms and barbeque grills.

The subdivider advises that no escrows will close until all common facilities, improvements, landscaping and all structures have been completed and a Notice of Completion has been filed and all claim of liens have expired or a title policy issued containing an endorsement against all claim of liens.

MANAGEMENT AND OPERATION: The Park Vista II Association which you must join, manages and operates the common areas in accordance with the Restrictions and the Bylaws.

MAINTENANCE AND OPERATIONAL EXPENSES: The subdivider has submitted a budget for the maintenance and operation of the common areas and for long term reserves. You should obtain a copy of thes budget from the subdivider. Under this budget, the monthly assessment against each subdivision unit is $57.28 of which $8.59 is a monthly contribution to long term reserves and is not to be used to pay for current operating expenses.

IF THE BUDGET FURNISHED TO YOU BY THE DEVELOPER SHOWS A MONTHLY ASSESSMENT
FIGURE WHICH VARIES 10% OR MORE FROM THE ASSESSMENT AMOUNT SHOWN IN THIS
FUBLIC REPORT, YOU SHOULD CONTACT THE DEPARTMENT OF REAL ESTATE BEFORE EN-
TERING INTO AN AGREEMENT TO PURCHASE.

The association may increase or decrease assessmenss at any time in accordance with the procedure prescribed in the CC&Rs or Bylaws. In considering the advisability of a decrease (or a smaller increase) in assessments, care should be taken not to eliminate amounts attributable to reserves for replacement or major maintenance.