DISCLOSURE STATEMENT
FOR MOUNTAIN VALLEY ACRES SUBDIVISION

1. Lots are part of Mountain Valley Acres #2, Unit 2, a platted, legal, recorded subdivision (March 11, 1965, in Volume 2, Page 127, and refilled in Cabinet B, Page 23-B, Records of Maps & Plats, Taos County)

2. Located in Taos County, Section 20, Township 29N, Range13E, NMPM

3. E1evation- 7600 ft.

4. Sellers: Roger, Roberta, Daniel, Eliana & Joseph Lerman, PO Box 190, E1 Prado, NM 87529 575-758-5525

5. Six (6) lots to a well (permit from NM State Engineer), well depths 450-550ft, 30gallmin, 5hp Grundfos pumps, two pressure tanks. Each well will have a Well-share Agreement to handle repairs, electric etc.

6. Water quality: (to be tested)

7. Liquid waste by individual septic systems to be permittedby NM Environment Dept. 1215-B GusdorfRd in Taos, 758-8808

8. Electric: 120/240 Volts, primary. Lot owners to take secondary to their homes, by licensed electricians from existing transformers (no charge to tie into).

9.Telephone: Qwest pedestals to individual homes.

10. Roads: what you see is what you get. All roads platted and part of Mountain Valley Subdivision, improved by sellers. Maintenance by Buyers. Possibility of the four well share entities binding together for road upkeep/snow plowing.

11. Easements: lots will have 10' utility easements along certain boundaries from the placement of water, power & phone lines (no fences, structures, on easements), each lot different. Roads are common right-of-way easements. Set back requirements (from Taos County), for structures, 30' from front, 10' from sides of lots.

12. Fire Protection: Questa Fire Dept (911 or 586-0250), approx 2 miles away, 3000 gallon water storage tank on site.

13. Police Protection: Taos County Sheriff (737-6480), NM State Police (758-8878 ), Questa Police Dept (approx 2 miles away, 911 or 586-0787).

14. Real Estate Taxes (to Taos County), currently $41/lot/year, as vacant lots.

15. Zoning- Taos County Residential Building Permits from Taos County Planning Dept, 105 Albright St. Taos, (737-6440)

16. CovenantsfDeed Restrictions-as an attachment, to each deed, incorporating these items, enforceable.

Prior covenants from original date of subdivision, never enforced (void).

17. Soils- Trampas-Ustorthentis-Mirand (deep, well drained) .

18. Title-by Warranty Deed from Seller, Title Insurance available, but not included.

19. Purchase-directly from Sellers (no sales commission) or through RE Broker (commission involved).

Sellers have their own Purchase Contract .

20. Financing-min of 15% down, max term-15 years, interest rate 8-10%, by NM Real Estate Contract placed in escrow with Weststar Escrow in Albq.

21. Survey stake out-lots comers existing

22. Permitted structures-each lot may have a house and guest house (for a maximum of two habitable structures). Mobile homes must be newer (max of 10 years old) single or double-wide allowed on some lots, max one/lot. Other structures- sheds, barns, studios, garages, workshops, satellite dishes, solar collectors.