16. Settlement Costs and Closing of Title

1. Good and marketable title to each Unit and its appurtenant interest in the Common Elements, insurable at regular rates, will be conveyed to each purchaser by the Developer by Bargain and Sale Deed with Covenant Against Grantor's Acts (a sample copy of which appears as Exhibit 5 to this Public Offering Statement) free and clear of all liens and encumbrances other than:


1. Zoning regulations and ordinances, if any, and any amendments thereto now or hereafter adopted;
2. Easements, covenants, restrictions, reservations, agreements and other matters contained, incorporated by reference, or referred to in this Public Offering Statement, the .Master Deed, or any exhibits to either; and
3. Any state of facts which would be shown by an accurate survey or title search, so long as same do not render title unmarketable.


2. The estimated closing costs to be borne by each Purchaser of a Unit will include, but not necessarily be limited to:


1. The costs for recording the deed to the Unit;
2. Mortgage closing costs, if applicable, which may include but not necessarily be limited to the following:


1. The mortgagee's application fee, which is a non-refundable fee that must usually be paid at the time the mortgage application is submitted;
2. The mortgagee's counsel review fee;
3. The mortgage recording fee;
4. Pro-rata interest on such mortgage loan from the date of closing of title to the Unit to the date of the first regular monthly principal and interest payment;
5. The payment of annual real estate taxes which have been or will be assessed against his Unit;
6. The cost of private mortgage insurance, if any, due upon closing of title;
7. Such other processing fees, origination fees, administrative fees, etc., as may be required by a mortgagee, including, but not limited to, appraisal fees, termite certification, etc.;
8. The cost of a mortgagee's policy of title insurance, including all premiums, search fees, etc., in connection with same; and
9. Flood insurance, if required by a lender.


3. The fees and expenses of his own attorney, if any;
4. A pro rata share of the Common Expense Assessment attributable to the Unit adjusted from the closing date to the first day of the next month;
5. The sum of $350.00, to be used by the Association for working capital; this fee shall not be refunded to the Unit Owner by the Association upon resale of the Unit;
6. A non-refundable, transferable deposit in an amount equal to twice the then current monthly Common Expense assessment installment attributable to the Unit at the time of conveyance of title to the Unit. This deposit shall be held in escrow by the Association and shall be used by the Association and applied in the event of default by the Unit Owner in the payment of any installment of any assessment, regardless of type. Unit Owners will be obligated to replenish this escrow deposit in the event it is used in whole or in part by the Association. Unit Owners shall be responsible for recouping this deposit from anyone who purchases their Unit since it will not be refunded by the Association;
7. The cost of a survey certificate, if same is required by a Unit Purchaser, his title company or his mortgagee; and
8. Purchasers will be required to pay a sewer connection fee in an amount not to exceed $2500.00.
9. A Unit purchaser may obtain, at his own expense, a policy of title insurance for his Unit. A specimen copy of such a fee policy, available from American Title Insurance Company, appears as Exhibit 6 to this Public Offering Statement.

None of the foregoing closing costs will be paid by Developer.