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Attachment 1
<br />File:Assumptions & Limiting Conditions
<br />AssumptionsandLimitingConditions
<br />1.The appraiser (Clay M. Dodd)has inspected the subject property through reasonable
<br />observation. However, it is not possible or reasonably practicable to personally inspect
<br />conditions beneath the soil and the entire interior and exterior of the improvements on
<br />the subject property. Therefore, no representation is made as to such matters.
<br />2.The report, including its conclusions and any portion of such report (the “Report”), is as
<br />of the date set forth in the letter of transmittal and based upon the information, market,
<br />economic, and property conditions and projected levels of operation existing as of such
<br />date. The dollar amount of any conclusion as to value in the Report is based upon the
<br />purchasing power of the U.S. Dollar on such date. The Report is subject to change as a
<br />result of fluctuations in any of the foregoing. The appraiser has no obligation to revise
<br />the Report to reflect any such fluctuations or other events or conditions which occur
<br />subsequent to such date.
<br />3.Unless otherwise expressly noted in the Report, the appraiserhas assumed that:
<br />(i)Title to the subject property is clear and marketable and that there are no recorded or
<br />unrecorded matters or exceptions to title that would adversely affect marketability or
<br />value. The appraiserhas not examined title records (including without limitation liens,
<br />encumbrances, easements, deed restrictions, and other conditions that may affect the
<br />title or use of the subject property) and makes no representations regarding title or its
<br />limitations on the use of the subject property. Insurance against financial loss that may
<br />arise out of defects in title should be sought from a qualified title insurance company.
<br />(ii)Existing improvements on the subject property conform to applicable local, state, and
<br />federal building codes and ordinances, are structurally sound and seismically safe, and
<br />have been built and repaired in a workmanlike manner according to standard practices.
<br />(iii)Hazardous materials are not present on the subject property. The appraiser is not
<br />qualified to detect such substances. The presence of substances such as asbestos, urea
<br />formaldehyde foam insulation, contaminated groundwater, mold, or other potentially
<br />hazardous materials may affect the value of the property.
<br />(iv)There are no contemplated public initiatives, governmental development controls, rent
<br />controls, or changes in the present zoning ordinances or regulations governing use,
<br />density, or shape that would significantly affect the value of the subject property.
<br />(v)All required licenses, certificates of occupancy, consents, or other legislative or
<br />administrative authority from any local, state, nor national government or private entity
<br />or organization have been or can be readily obtained or renewed for any use on which
<br />the Report is based.
<br />(vi)The subject property is managed and operated in a prudent and competent manner,
<br />neither inefficiently or super-efficiently.
<br />(vii)The subject property and its use, management, and operation are in full compliance
<br />with all applicable federal, state, and local regulations, laws, and restrictions, including
<br />without limitation environmental laws, seismic hazards, flight patterns, decibel
<br />levels/noise envelopes, fire hazards, hillside ordinances, density, allowable uses,
<br />building codes, permits, and licenses.
<br />(viii)The subject property is in full compliance with the Americans with Disabilities Act
<br />(ADA). The appraiseris not qualified to assess the subject property’s compliance with
<br />the ADA, notwithstanding any discussion of possible readily achievable barrier removal
<br />construction items in the Report.
<br />(ix)All information regarding the areas and dimensions of the subject property furnished to
<br />the appraiserare correct, and no encroachments exist. The appraiserhas neither
<br />Dodd Advisory & Valuation 26
<br />Qbhf!236!pg!385
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