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Recorded at the Cook
County Recorder of Deeds
1251-65 WEST GRANVILLE AVENUE CONDOMINIUMS PROPERTY REPORT NAME OF CONDOMINIUMS: 1251-65 West Granville Avenue Condominiums ADDRESS OF CONDOMINIUMS: 1251-65 West Granville Avenue NAME OF DEVELOPER: Lakewood Residences LLC, an Illinois Limited Liability Company ADDRESS OF DEVELOPER: 7601 North Eastlake Terrace EFFECTIVE DATE OF PROPERTY REPORT: April 01,
2004 TABLE OF CONTENTS for 1251-65
WEST GRANVILLE AVENUE CONDOMINIUMS 1251-65 WEST GRANVILLE AVENUE CONDOMINIUMS
PROPERTY REPORT B. Declaration of Condominium Ownership for 1251-65 West Granville Avenue Condominiums B-a Legal Description of Parcel B-b Condominium Plat of Survey B-d By-Laws of 1251-65 West Granville Avenue Condominium Association C. Legal Description and Status of Title D. Form of Real Estate Sale Contract E. Schedule of Sales Prices, Estimated Monthly Real Estate Taxes and Assessments G. Estimated Budget for Condominium Association H. Floor Plans I. Articles of Incorporation of 1251 West Granville Avenue Condominium Association K. Condominium Management Agreement L. Description
of Renovation Work in Units and Building Chapter 100.2 of the Municipal Code of Chicago, currently numbered Chapter 13-72 (the "Code") requires that the developer of condominium units disclose accurately all of the material characteristics of the condominium units being offered for sale. This Report (the "Report") is the means by which the required statutory disclosure is to be made and contains the information required by the applicable provisions of the Code. ANY PROSPECTIVE PURCHASER RECEIVING THIS REPORT SHOULD READ IT CAREFULLY. This Report consists of two parts, a narrative portion and an exhibit portion. The narrative portion summarizes the significant features of 1251-65 West Granville Avenue, Chicago, Illinois (the "Building"), and presents additional information of interest for prospective purchasers. The exhibits include, among other things, legal documents which relate to the creation and operation of 1251-65 West Granville Avenue Condominium Association (the "Condominium Instruments"), copies of the forms of sales documents applicable to individual Units, a statement of the sales prices of unsold Units and estimated monthly tax and assessment payments for each Unit, and an estimated operating budget and engineer's report. In the event of any inconsistency between the narrative and exhibits, the exhibits will govern. All of the Developer's sales and other representatives are prohibited from orally changing any of the terms and conditions of the Condominium Instruments or, with the exception of the Developer's attorneys, attempting to interpret their legal effect. Employees, agents and brokers of the Developer are forbidden by the Developer from modifying this Report, interpreting the legal effect of the Report, Condominium Instruments, or sales contract, or making any promises on behalf of the Developer. Prospective purchasers are urged to read all documents and this Report carefully and to rely only on their own attorneys and advisors. The Report is not a legal offer to sell real estate; a contract results only if the prospective purchaser submits a written offer to purchase a Unit which is accepted by the seller in writing. The definitions of words and phrases set forth in Chapter 100.2 of the Code (currently numbered Chapter 13-72) are also followed herein, except where otherwise provided, and all information is as of the effective date of this Report. However, amendments may be issued and attached after the effective date through either supplements or substituted pages. The term "condominium" refers to a form of property ownership which, in effect, combines two forms of ownership. A condominium unit owner is, at the same time, both the sole owner of the portion of a building which comprises the space of his or her living quarters (the "Unit") and one of many owners (in legal terms, "tenants in common") of all other portions of the Condominium Property (as defined in the Condominium Declaration) known as "Common Elements". In general, the Common Elements consist of those portions of the Property which support, enclose or service the Units, and includes all portions of the Condominium Property which are not part of a residential or parking space. Each individual Unit owner has a percentage share -- an "undivided interest" -- in the ownership of the Common Elements. The undivided interest is expressed as a percentage of the total undivided ownership of the Common Elements. The ownership of this percentage interest gives the Unit Owner the right, subject to the terms of the Illinois Condominium Property Act (the "Act") and the Condominium Instruments, to use and participate in the control of the Common Elements and also imposes upon the Unit Owner certain obligations, one of which is to pay the Unit Owner's percentage of the expenses of operating and maintaining the Common Elements. The condominium form of ownership with respect to 1251-65 West Granville Avenue Condominiums will be created upon recordation of the Declaration of Condominium Ownership for 1251-65 West Granville Avenue Condominiums (the "Condominium Declaration") with the Recorder of Deeds of Cook County, Illinois. 4. Brief
Description of 1251-65 West Granville Avenue Condominiums
The Condominium is located in the City of Chicago on a site commonly known as
1251-65 West Granville Avenue. The building was an apartment building and is partially
vacant. The apartments in the building are being refurbished by the Developer.
There are a total of 27 units: 5 one-bedroom units, 20 two-bedroom units, and
2 three-bedroom units. Except for the area designated as S-1 on the Plat (the
"Parking Space"), there is no parking on the site. The Parking Space
("S-1") will be a limited common element and will be assigned by the
Developer to only one of the Unit Owners. The Units, the one Parking Space, the
common elements and easements appurtenant to the Condominium are referred to collectively
as the Condominium Property. The following pages, together with the Exhibits hereto, contain all of the information required by Section 100.2 2 of the Code (currently numbered Chapter 13-72). The terms used herein which are not specifically defined herein shall have the meanings assigned to them in the Declaration which is attached as Exhibit B to this Report. The references in each heading correspond to the Sections of Chapter 13-72 of the Code. Developer: Legal Owner: Lender Secured by: Sales Agents: Prepared by: Accountant for Developer: Architect
for Developer: Engineer for Developer: General Contractor:
A copy of the survey of the underlying real estate and all existing improvements
is attached as Exhibit A hereto.
A plat of survey of the Condominium as required under Section 5 of the Act will
be attached to the Declaration prior to the time it is recorded, which will reflect
all Condominium Units. The share of ownership in the Common Elements appurtenant to each Unit ("Undivided Interest") in the Condominium is set forth in Exhibit E to this Report. As of the date of this Report, Developer holds title to the property. No Units in the Condominium are under binding contracts for sale as of the date of this Report. B(3) COMMON AND LIMITED COMMON ELEMENTS The Condominium Property consists of the real estate which is legally described in Exhibit C to this Report and all improvements to such real estate. The Common Elements are defined in Article III of the Declaration to be all of the Condominium Property other than the Units, and are more specifically described in Section 1 of Article III of the Declaration as follows: "Except as otherwise provided in this Declaration, the Common Elements shall consist of all portions of the Property except the Units and shall include the Limited Common Elements. Without limiting the generality of the foregoing, the Common Elements shall include: the walls, roof, hallways, stairways, entrances and exits, mechanical equipment areas, meter rooms, storage areas, trash rooms, garages, master television antenna and cabling system (if any), pipes, ducts, flues, shafts, electrical wiring and conduits (except pipes, ducts, flues, shafts, electrical wiring and conduits situated entirely within a Unit and serving only such Unit), heating, air conditioning and ventilating systems and equipment serving the Common Elements, elevators, public utility lines structural components of the Building as such components serve the Condominium, and all other portions of the Property except the Units." The Limited Common Elements are defined in Section 3 of Article III of the Declaration as follows: "The Limited Common Elements shall consist of such portions of the Common Elements serving exclusively one or more Units as an inseparable appurtenance thereto, as designated as such in this Declaration, depicted on the Plat or which by the nature or location thereof are to be reserved for the use of one or more Units to the exclusion of other Units. The Limited Common Elements shall include, but shall not be limited to, the following: (a) the interior surface of the perimeter walls, ceilings and floors which define the boundary planes of a Unit; (b) perimeter doors, windows and skylights which serve exclusively a single Unit; (c) any system or component part thereof which serves a Unit exclusively, to the extent that such system or component part is located outside the boundaries of a Unit; (d) porches, outdoor patios or garden areas which are contiguous to one or more Units; (e) storage areas designated on the Plat, and (f) the Parking Space assigned to a Unit." B(4) IMPROVEMENTS ON ZONING LOT There are no improvements on the zoning lot on which the Condominium is located which are not part of the Condominium. Located on the Condominium Property is a 3-story brick building containing 27 Units and one assigned Parking Space (S-1). B(5) EASEMENTS, STREETS AND DRIVEWAYS The location of easements, streets and driveways on or contiguous to the Condominium is as shown on the survey of the Parcel attached as Exhibit A to this Report. The Parcel is located on corner of Granville and Lakewood in Chicago. There are no unrecorded easements presently affecting the Condominium except as described below. The Declaration contains reservations and grants of easements as are more particularly set forth in Article IV thereof. See Declaration of Condominium. B(6) DRAWINGS AND ARCHITECTURAL PLANS To the extent such drawings, plans or other documents are necessary for the work undertaken by Developer and exist, they are on file at the Department of Buildings, City of Chicago, 8th Floor, City Hall and may be inspected during the Department's regular business hours. Developer will undertake certain renovation work in the Building, as noted in the Engineer's Report attached as Exhibit J to this Report and as described in Exhibit L to this Report. The Developer is renovating the Units. A description of the work to be completed in each Unit is attached as Exhibit L to this Report. The work in each Unit commences as it becomes vacant and will be completed prior to the closing of the sale of each Unit. B(8) LIMITATIONS OF USE OF DWELLING UNITS Limitations on the use of Units are set forth in Article XII of the Declaration as follows: "The Units and Common Elements shall be owned, occupied, and used subject to the following covenants and restrictions: 1. Permitted Use. No part of the Property shall be used
for other than housing and related common purposes for which the Property was
designed. Each Unit shall be used as the owner's primary or secondary residence
for a single family or such other uses permitted by this Declaration and for no
other purpose. 13. Exceptions. The restrictions contained shall not, however, be construed in such a manner as to prohibit a Unit Owner from: (a) maintaining his personal professional library therein; (b) keeping his personal business or professional records or accounts therein; (c) handling his personal business or professional telephone calls or correspondence therefrom; (d) maintaining a computer or other office equipment within the Unit; (e) utilizing secretarial help and having occasional business visitors; or (f) receiving deliveries. Such uses are expressly declared customarily incidental to the principal residential use. A Unit Owner may operate an in-home business from their respective Units provided such businesses are lawful, do not involve the regular or consistent entry of salespeople, customers or clients, and do not cause a nuisance to other Unit Owners, and provided further that the Unit is used at all times primarily as a residence of the person operating the in-home business in such Unit." According to the Chicago Zoning Ordinance (1980), the Condominium is located in an R-3 Residential District. At present, to the best of Developer's knowledge, there is no present or contemplated use which would violate said Zoning Ordinance. Limitations upon leasing of Units are set forth in Section 1 of Article VII of the Declaration, which provides generally that a Unit may be leased, but that no lease or sublease may be for a term of less than six (6) months. B(9) PURCHASE OF MULTIPLE UNITS A purchaser may purchase more than one Unit if the Developer, in its sole discretion, chooses to sell more than one Unit to a purchaser. Since there is no such restriction on the resale of Units, it is possible that an Owner may own more than one Unit even if the Developer will only sell one Unit to the Owner. B(10) CONDITION OF TITLE/STATEMENT OF LEGAL OWNERSHIP The real estate which is subject to the Declaration is legally described in Exhibit D to this Report. Developer is the legal owner of such real estate. A list of all restrictions, notices, lis pendens and encumbrances of record with respect to the real estate as of the date of this Report is set forth in Exhibit C. C. TRANSFER OF DEVELOPER'S CONTROL Until the initial meeting of the Unit Owners and the election of a Board of Directors by the Unit Owners at the initial meeting, the powers of the Board shall be exercised by the Developer. The initial meeting of the Unit Owners shall be held no later than the "Turnover Date", which shall be the date on which the first of the following occurs: (a) sixty (60) days after the Declarant has conveyed at least 75% of the Units, (b) the expiration of three years from the date on which the Declaration is Recorded, or (c) the date designated in a written notice from the Declarant to all of the Unit Owners as being the Turnover Date. At the initial meeting of the Unit Owners, the Unit Owners will elect a full Board of five (5) Directors. The Board shall serve as provided in the Bylaws. The Directors shall be elected for a term of one (1) year. At each election for Directors, each Voting Member (as defined in the Declaration) shall have the right to cast with respect to each Unit represented by the Voting Member that number of votes equal to the Undivided Interest assigned to the Unit, multiplied by the number of Directors to be elected, and such votes may be cast cumulatively. The Voting Member who represents Units owned by the Developer will thus be entitled to cast votes for each such Unit which is owned by the Developer. IT IS POSSIBLE THAT AT AND AFTER THE INITIAL MEETING OF THE UNIT OWNERS, THE DEVELOPER MAY CONTINUE TO EXERCISE SIGNIFICANT VOTING POWER IN THE ASSOCIATION, INCLUDING THE POWER TO ELECT DIRECTORS, THROUGH ITS CONTINUED OWNERSHIP OF UNITS. D. PENALTIES FOR UNCOMPLETED CONSTRUCTION There are no provisions for penalties if construction completion dates are not met. No additional costs will be imposed upon the Unit Owners if such dates are not met. E. PROTECTION IF DEVELOPER DEFAULTS ON ENCUMBRANCES 1. Earnest Money. Prior to the closing of the purchase of a Unit, any earnest money deposit made by the purchaser will be held in a segregated escrow account which will bear interest only as required by the Act and, pursuant to Section 24 of the Act, will not be subject to attachment by any creditor of a purchaser or of the Developer or by the holder of a lien against any portion of the Condominium Property. 2. Release of Lien of Blanket Encumbrance. At the closing of the conveyance of a Unit and the delivery of a deed thereafter, all Blanket Encumbrances (as defined in the Code) (other than the lien for real estate taxes for the year in which the Declaration is recorded), shall be released or shall be insured over by the title insurance company which insures the purchaser's title to the Unit. Accordingly, a subsequent default by the Developer under such Blanket Encumbrance(s) will not adversely affect the rights of any Unit purchaser after the closing of the purchase thereof. As of the date of this Report, the Developer knows of no claims or litigation, pending or threatened, which could affect the Condominium or the Developer's ability to convey clear title.
The most recent ascertainable real estate taxes levied on the real estate described
in Exhibit C to this Report was for the year 2002. The total amount of the
2002 real estate taxes for the real estate was $13,292.34. Real estate taxes for condominium units in Cook County are determined by the Cook County Collector by multiplying the market value of each Unit (determined by the Cook County Assessor) by a fraction (currently, either 16% or 33%) and by multiplying the product by an equalization factor (determined by the State of Illinois) and a tax rate (determined by the local taxing districts). All Units will be assessed individually as tax parcels, and a real estate tax bill will be issued for each Unit. Until separately assessed tax parcels are created by the Cook County Assessor for each Unit of the Condominium, all Unit Owners shall be collectively responsible for paying the real estate tax bills for the real estate in accordance with their Undivided Interests. Assuming that the Declaration is recorded during 2004, it is likely based on current practice that the Cook County Assessor will assess each Unit separately for 2005. The assessed valuation is determined on the basis of the use of the property being assessed and multiplying the market value by a certain assessment percentage. The percentage applied to rental residential property (over 6 dwelling units) to arrive at the assessed valuation is currently 33%. The assessment percentage for single family residential property should apply to those Units which are sold to owner occupants which is currently, 16%, so it is possible that the assessment may decrease as a result of the recording of the Declaration and the sale of Units. Any owner who owns more than six Units in the Condominium may be subject to the rental-residential assessment rate of 33% of market value. Under current law, a Unit Owner who resides in the Unit which he or she owns on January l of a year may qualify for a Homeowners Exemption from the Cook County Assessor for such year. In addition, the Owner of a Dwelling Unit who resides in a Unit on January 1 of a year and is 65 years of age or older may qualify for a Homestead Exemption from the Cook County Assessor for such year. According to the Assessor's Office, the Homeowner and Homestead Exemptions allow the Assessor to reduce the assessed valuation of the Unit. The Developer makes no representation or promise that either of these exemptions will be available to Unit Owners or as to the amount of the resulting tax savings, if granted. For information regarding these programs, contact the Cook County Assessor's Office directly. On the assumption that the Declaration will be recorded in 2004 and that, therefore, the first year in which separate tax bills will be issued on a unit by unit basis will be 2005, Exhibit E to this Report includes an estimate of one twelfth (l/12) of the annual real estate taxes for 2005 (payable in 2006) applicable to each Unit. These estimates were determined by multiplying the listed sales price of each Unit by 2%, which, in Developer's experience, is a reasonable method for estimating real estate taxes for Units in a condominium conversion in Chicago in the neighborhood in which the Condominium is located. These estimates will be updated and revised if more current information is received. THE DEVELOPER CAN MAKE NO GUARANTY WITH RESPECT TO THE REAL ESTATE TAX ESTIMATES CONTAINED IN EXHIBIT E, AS VARIOUS GOVERNMENTAL DEPARTMENTS OVER WHICH THE DEVELOPER HAS NO CONTROL HAVE THE RESPONSIBILITY FOR DETERMINING THE MANNER OF ASSESSMENT FOR AND COMPUTATION OF REAL ESTATE TAXES." At the Closing of the sale of each Unit, real estate taxes shall be prorated as provided in the Real Estate Sale Contract which is attached as Exhibit D to this Report, as follows: 2003 Taxes: There shall be no proration of 2003 taxes and they shall be paid by the Seller when they become due and payable in 2004. Proof of payment shall be provided to Purchaser upon request. 2004 Taxes: Real estate taxes for 2004 shall be prorated on the basis of the last ascertainable real estate tax bill. The last ascertainable real estate tax bill is assessed against the entire property and the tax on the Unit shall be computed by multiplying the last ascertainable real estate tax bill by the percentage of ownership interest in the Common Elements pertaining to the Unit. On the Closing Date, Purchaser shall deposit with Seller an amount equal to 120% of its estimated share of real estate taxes for the Unit based on most recently ascertainable taxes representing the period from the Closing Date through December 31, 2004. Seller shall pay all of the 2004 taxes as they become due in 2005, including Seller's actual share of 2004 taxes prior to the Closing Date. If the amount of Purchaser's deposit differs from Purchaser's actual share, an adjusting payment will be made by Purchaser or Seller as the case may be. 2005 Taxes: Since it is anticipated that real estate taxes for 2005 will be assessed on a unit by unit basis, Developer will credit each purchaser, at the time of closing, a sum equal to the last full year's tax bill, prorated ratably as of the date of closing. (1) The basic form of Real Estate Sale Contract proposed to be used by the Developer is attached as Exhibit D to this Report. (2) The form of Deed proposed to be used by the Developer is attached as Exhibit F to this Report. (3) The Developer does not intend to finance the sale of Units. Accordingly, no form of trust deed, mortgage or promissory note is included in this Report. I. TERMS AND CONDITIONS OF UNIT SALES All Unit sales are to be pursuant to the terms and conditions as set forth in the Real Estate Sale Contract which is attached as Exhibit D to this Report. A statement of the initial sales price of each Unit in the Condominium is attached as Exhibit E to this Report. Closing and settlement costs, as they pertain to mortgage financing, are arranged directly between purchasers and their lenders. These expenses may consist of service charges, loan commissions, prepaid interest, appraisal and credit report fees, deposits into tax escrows or pledge accounts, fee for loan policies or title insurance and related endorsements, premiums for private mortgage insurance, premiums for mortgage insurance, origination fees, money lender's escrow charges and other related expenses. Other closing charges to be paid by Unit purchasers consist of: 1. Deed and Money Escrow Fees - estimated at approximately $250.00 for purchaser's share; 2. Deed recordation and other similar charges customarily charged to purchasers - estimated at approximately $100.00. In the event the purchaser conveys title to his Unit to a land title holding trust, an additional charge for recording a Deed in Trust will be made; 3. City of Chicago Revenue Stamps at the rate $3.75 per each $500 (or any part thereof) of the sales price of the Unit; and 4. Attorneys' fees incurred by purchasers, which shall be each purchaser's responsibility and cannot be estimated by the Developer. 5. Any fees charged by Purchaser's lender or charged by the title insurer as a result of a requirement of Purchaser's lender. These amounts cannot be estimated by Developer. Closing charges to be paid by Developer include: 1. Developer's share of Deed and Money Escrow fees, if any; 2. State Revenue Stamps - $.50 cents for each $500.00 (or part thereof) of the sale price of the Unit; 3. County Revenue Stamps - $.25 cents for each $500.00 (or part thereof) of the sale price of the Unit; and 4. Title insurance charges customarily charged to a seller. Pursuant to the Real Estate Sale Contract, purchaser will be required to pay to the Condominium Association at closing an amount equal to two (2) months of the current Annual Assessment for each Unit purchased, and the prorated portion of the current month's assessment for each such Unit. Exhibit E to this Report contains estimates of monthly assessments for each Unit based on the proposed Budget of the Association, which is included as Exhibit G to this Report. J. MONTHLY ASSESSMENT, TAX AND UTILITY PAYMENTS The estimated monthly payments for assessments and real estate taxes in the first year after the sale of the first unit are shown on Exhibit E attached hereto. Each Unit Owner of a Unit will be billed directly by the local utility providers (such as Commonwealth Edison Company, Peoples Gas, the City of Chicago and Ameritech) for electricity, gas, water, cable, cable television and telephone usage, respectively, and the amounts of such bills will vary according to usage. Certain utility charges may be billed to the Condominium Association and included in each Unit's monthly assessment. The costs for heating the Units and hot water are billed with respect to the Building as a whole and not to individual Units. These costs are included in the amounts shown for the monthly assessments. The amount actually billed by a utility for non-heating uses will vary depending on each Unit Owner's individual use and any increases in rates. THE DEVELOPER MAKES NO GUARANTEES AS TO THE ESTIMATES OF ELECTRICITY, WATER OR GAS CHARGES INCLUDED IN THE ANNUAL AS THE DEVELOPER WILL HAVE NO CONTROL OVER ACTUAL USE OR THE RATES CHARGED FOR SUCH USE. The monthly real estate taxes shown on Exhibit E are equal to one-twelfth (1/12) of the real estate taxes estimated as based on the initial sales price of each of the Units based on the formula for computing real estate taxes as described in Section G of the Statutory Disclosures Section of this Report. THE DEVELOPER MAKES NO GUARANTEES AS TO THE ESTIMATES OF REAL ESTATE TAXES AS VARIOUS GOVERNMENTAL AGENCIES CAN ALTER THE MANNER OF DETERMINING ASSESSMENTS AND THE COMPUTATION OF TAXES OVER WHICH THE DEVELOPER HAS NO CONTROL. K. DEVELOPER-FINANCED UNIT PURCHASES This Section is inapplicable because the Developer does not intend to finance the purchase of any Units. L. APPLIANCES AND PERSONAL PROPERTY The appliances and personal property included with the sale of each Unit are limited to those located in the Unit, including: stove, refrigerator, microwave, dishwasher, washer, dryer, individual hot water heater and furnace, electric, plumbing and other attached fixtures, as installed, and locks and hardware. The standard appliances and other personal property, if any, included with all the Units are described in Exhibit B to the Real Estate Contract. A Bill of Sale for the appliances, fixtures and personal property owned by Developer and located in the Unit will be given to each purchaser of a Unit at the time of closing and all manufacturers' warranties, if any, shall be assigned by Developer to purchaser at the time of Closing. (a) A copy of the Declaration is attached to this Report as Exhibit B and typical floor plans for the Units for the Condominium are attached to this Report as Exhibit H THE DESCRIPTION OF UNITS AND PERCENTAGE OF OWNERSHIP INTEREST IN COMMON ELEMENTS HEREIN IS PRELIMINARY AND MAY BE CHANGED IN MATERIAL RESPECTS UPON THE RECORDING OF THE DECLARATION AND PLAT. (b) The proposed Articles of Incorporation of the Condominium Association are attached hereto as Exhibit I to this Report. (c) The proposed By-Laws of the Condominium Association are attached as Exhibit B-D to this Report. Pursuant to the Declaration and By-Laws, the Board of Directors shall have the power to adopt rules and regulations governing the administration, management, operation and use of the Condominium and the Common Elements. As of the date hereof, no such rules and regulations have been adopted. M(2)(a). LEASES OF COMMON ELEMENTS There are no leases of real property or personal property in the Condominium which will expire later than two years after the first Unit is offered for sale or are not terminable at such time by action of the Board of Directors of the Association. M(2)(b). OUTSTANDING CONTRACTS There are no management contracts, employment contracts, insurance policies, or other contracts affecting the use, maintenance or access to all of part of the Condominium which will expire later than two years after the first Unit is offered for sale. The insurance requirements of Article V of the Declaration and Section 12 of the Act will apply, and the Developer will cause the Association to secure and maintain the required insurance coverage with respect to the Condominium. Insurance coverages will include: Fire and Property Damage: 100% of insurable replacement cost Comprehensive General Liability:
$1,000,000 each occurrence; $2,000,000 annual Directors' and officers' liability: $1,000,000 each claim Employee Dishonesty $5,000 each claim Workmens' compensation: As required by law. The Developer as of April 1, 2004 has not, but sometime after that date may, cause the Condominium Association to enter into a management agreement with Developer for the management of the Condominium. A copy of the proposed management agreement is attached hereto as Exhibit K. Services to be performed by the management company will include, without limitation, administering the Condominium and operating, maintaining and repairing the Common Elements; hiring employees, retaining professionals, and purchasing services and materials in connection with operation of the Condominium; procuring and supervising casualty insurance and liability insurance; paying from Association funds all related expenses, including costs of administration, operation, maintenance, repair and replacement, salaries, costs, fees, costs of goods and services and insurance premiums; submitting proposed budgets and reports to the Board: communication with and collecting assessments from Owners; and keeping all books and management records. N(2). TERM OF MANAGEMENT AGREEMENT AND COSTS The term of any such Management Agreement shall continue for no more than one year from the date it commences. N(3). TERMINATION OF MANAGEMENT AGREEMENT The Management Agreement may be terminated by the Condominium Association or the management agent effective as of the last day of a month upon at least 30 days prior written notice. N(4). RELATIONSHIP BETWEEN MANAGEMENT AGENT AND DEVELOPER The Management Agent may be the Developer. An estimated operating budget for the Condominium projected for a period of one year from the anticipated closing of the sale of the first Unit is attached as Exhibit G to this Report. The basis on which each item in the operating budget was formulated is set forth therein, and includes historical information gathered from ownership and operation of other buildings. The Bylaws of the Condominium Association provide for the Board to make and establish reasonable reserve accounts for replacement and a working capital fund. THE DEVELOPER HAS NOT PROVIDED A RESERVE FOR CERTAIN POSSIBLE FUTURE COSTS OF THE CONDOMINIUM IN ITS BUDGET. ACCORDINGLY, IT MAY BE NECESSARY TO PROVIDE FOR A SPECIAL ASSESSMENT TO ALL CONDOMINIUM UNIT OWNERS TO PAY FOR SUCH COSTS SHOULD THEY OCCUR. The Developer has made no special provisions to cover the proposed operations and maintenance budget in the event that an insufficient number of Units are sold. However, the Developer, as an Owner, is responsible for the payment of the monthly maintenance assessments on all unsold Units. An Engineer's Report is attached hereto as Exhibit J. R. RECREATION, PARKING AND STORAGE FACILITIES 1. There are no recreational or designated storage facilities included in the Condominium. 2. Parking Space S-1 shall be a limited common element reserved for the use of one Unit Owner only (other Unit Owners will have a limited right of ingress and egress over Parking Space S-1). S. RESTRICTIONS ON TRANSFER OF UNITS THE SALE, LEASE OR TRANSFER OF YOUR UNIT IS RESTRICTED OR CONTROLLED. The restrictions on sale, lease and transfer are set forth in Section B(8) of the Statutory Disclosures section of this Report, as well as in the Declaration. The statement required by 13-72-020 (T) of the Municipal Code of Chicago is set forth on the first page of the Report in boldface type. The undersigned hereby affirms that the foregoing Report is true, full, complete, and correct, and any supplements, modifications, and amendments hereto are true, full, complete and correct. Lakewood Residences LLC, an Illinois Limited Liability Company
EXHIBIT A Plat
of Survey for 1251-65 WEST GRANVILLE AVENUE CONDOMINIUMS Declaration of Condominium
Ownership for 1251-65 West Granville Avenue Condominiums Legal Description and Status of Title for for 1251-65 West Granville Avenue Condominiums Legal Description: LOT 13 AND 14 (EXCEPT THE EAST 10 FEET THEREOF) IN BROST AND KEMPER'S SUBDIVISION OF THAT PART OF THE SOUTHEAST ¼ OF THE NORTHWEST ¼ OF SECTION 5, TOWNSHIP 40 NORTH, RANGE 14 EAST OF THE THIRD PRINCIPAL MERIDIAN, LYING NORTH OF THE SOUTH 30 ACRES THEREOF, IN COOK COUNTY, ILLINOIS. Permanent Index No.: 14-05-119-001-0000 The following exceptions will appear on the title commitment to be issued pursuant to the Real Estate Sale Contract: 1. Real estate taxes not yet due and payable and taxes for subsequent years; 2. The Illinois Condominium Property Act and the City of Chicago Condominium Ordinance, including all amendments thereto; 3. The Declaration, including all amendments and exhibits attached thereto and the easements created thereby; 4. Public Utilities Easement to install, operate
and maintain all equipment necessary for the purpose of serving the land and other
property, together with the right of access to said equipment, and the provisions
relating thereto contained in the Declaration of Condominium. Form of Real Estate Sale Contract for 1251-65 WEST GRANVILLE AVENUE CONDOMINIUMS
Schedule of Sales Prices, Estimated Real Estate Taxes and Monthly Assessments for 1251-65 WEST GRANVILLE AVENUE CONDOMINIUMS
Form of Deed of Conveyance for 1251-65 WEST GRANVILLE AVENUE CONDOMINIUMS Estimated Annual Condominium Association Budget for 1251-65 WEST GRANVILLE AVENUE CONDOMINIUMS
NOTE: Expenses as set forth herein are estimates only, and Developer makes no guarantee that actual expenses will not exceed or be less than the estimated amounts. Estimates are based on projections from historical costs in similar structures. DEVELOPER
HAS NOT PROVIDED A RESERVE FOR CERTAIN POSSIBLE FUTURE COSTS. IT MAY BE NECESSARY
TO PROVIDE FOR A SPECIAL ASSESSMENT TO PAY FOR SUCH COSTS SHOULD THEY OCCUR. Typical Floor Plans Articles of Incorporation of Condominium Association
Engineering Report Condominium
Management Agreement - NOT APPLICABLE Description of Renovation Work and Features in Units and Building
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EVERY
PROSPECTIVE PURCHASER SHOULD READ THIS DOCUMENT CAREFULLY. 
