This is a continuation of the previous assumptions and limiting conditions pages and details more of the common items normally contained in a real estate or real property appraisal or valuation report.

Appraisal is not a legal opinion: No responsibility is assumed for matters of a legal nature that affect title to the property nor is an opinion of title rendered. The title is assumed to be good and marketable. The value estimate is given without regard to any question of title, boundaries, encumbrances or encroachments. We are not usually provided an abstract of title to the property being valued and we neither made a detailed examination of it nor do we give any legal opinion concerning it.

It is assumed that there is full compliance with all applicable federal, state and local environmental laws and regulations unless noncompliance is stated, defined and considered in the report. A comprehensive examination of laws and regulations affecting the subject property was not a part of this engagement and was not performed.

It is assumed that all applicable zoning and use regulations and restrictions have been complied with unless a nonconformity has stated, defined and considered in the report. Information and analyses shown in this report concerning these items are based only on a rudimentary examination. Any significant questions should be addressed to local zoning or land use officials, a qualified attorney and/or other qualified individuals.

It is assumed that all required licenses, consents or other legislative or administrative authority from any federal, state or local government or private entity or organization have been or can be obtained or renewed for any use on which the value estimate in this report is based. Appraiser has not made a comprehensive examination of laws and regulations or private licensing terms affecting the property. Any significant questions should be addressed to appropriate government or private officials and/or an attorney.

Appraisal is not an engineering, geology, environmental or property inspection report: The report should not be considered a report on the physical items that are a part of the property. Although the report may contain information about these physical items, including their adequacy and/or condition, it should be clearly understood that this information is only to be used as a general guide for property valuation and not as a complete or detailed physical. Appraiser is not a construction, engineering, environmental or legal expert and any statements given on these matters in the report should be considered preliminary in nature.

The observed condition of foundations, roofs, exterior and interior walls, floors, HVAC systems, plumbing, electrical, insulation and all mechanicals and construction is based on a casual examination only and no detailed inspection was made. The structures were not checked for building code compliance and it is assumed that all structures meet applicable building codes unless so stated in the report.

Some items such as conditions behind walls, above ceilings, behind locked doors or under the ground are not exposed to casual view and therefore were not examined. The existence of insulation, if any is mentioned, was found by conversation with others and/or circumstantial indications. Since it is not exposed to view the accuracy of any statements about insulation cannot be guaranteed.

It is assumed that there are no hidden or unapparent conditions of the property, sub-soil or structures that would render it more or less valuable. No responsibility is assumed for such conditions nor for the engineering that may be required to discover such factors. Since no engineering nor percolation tests were made no liability is assumed for soil conditions. Subsurface rights, including minerals, oil, gas and geothermal were considered only to the extent and detail stated in the report.

Wells and septic systems, if any, are assumed to be in good working condition and of sufficient capacity for the stated highest and best use.

Appraiser is not an environmental expert and does not have the expertise necessary to determine the existence of environmental hazards such as the presence of urea-formaldehyde foam insulation, asbestos, hazardous building materials, toxic waste or any other environmental hazards on the subject or surrounding properties. If Appraiser is aware of any problem of this nature which we believe would create a significant problem, it is stated in the report. Nondisclosure in the report should not be taken as an indication that no environmental problem exists. Any significant questions concerning environmental matters should be addressed to qualified experts.

No chemical or scientific tests were performed by Appraiser on the property and it is assumed that the air, water, ground and general environment associated with the property present no physical or health hazard of any kind unless otherwise noted in the report. It is further assume that the property does not contain any type of dump site and that there are no underground storage tanks or other underground sources leaking hazardous or toxic substances into the groundwater or the environment unless otherwise noted in the report.

The age of improvements on the property mentioned in the report should be considered only a rough estimate. Appraiser is not sufficiently skilled in the construction trades to be able to reliably estimate the age of improvements by simple observation. Appraiser has relied on circumstantial indications which may have come to our attention (such as dates on construction plans) or conversations with persons considered knowledgeable of the history of the property such as owners, onsite personnel or others. Any significant questions concerning the age of improvements should be addressed to qualified experts.

Because no detailed inspection was made, nor was it a part of this engagement, and because such knowledge goes beyond the scope of this engagement, any observed condition or other comments given in this report should not be taken as a guarantee that a problem does not exist. Specifically, no guarantee is made as to the adequacy, condition, integrity and/or suitability of structures or buildings and their integral components. Any significant questions concerning these matters should be addressed to qualified experts.

Appraisal Report limitations: Appraisal reports are technical documents addressed to the specific technical needs and requirements of Clients. Readers should understand that this report does not contain all of the information Appraiser has concerning the property or the relevant markets. While no factors Appraiser believes to be significant but unknown to Client have been knowingly withheld it is always possible that Appraiser has information of significance which may be important to others but which, with Appraiser’s limited knowledge of the property and limited expertise, does not seem to be important to Appraiser.

Reports are made for Clients and are technical documents made to Client requirements. Other readers are cautioned about their limitations and cautioned against possible misinterpretation of the information contained in the report.

Appraiser should be contacted with any questions before this report is relied on for decision making.

This report was prepared at the request of and for the exclusive use of Client to whom the report is addressed. No third party shall have any right to use or rely upon this report for any purpose.

There are no requirements, by reason of this engagement, to give testimony or appear in court or any pretrial conference or appearance required by subpoena with reference to the property in question, unless sufficient notice is given to allow adequate preparation and additional fees are paid by Client at Appraiser’s rates for such appearances and the preparation necessitated thereby.

This report is made for the information and/or guidance of Client and possession of this report, or a copy thereof, does not carry with it a right of publication. Neither all nor any parts of this report shall be conveyed to the public through advertising, public relations, news, sales, or other media without the written consent and approval of Appraiser. Nor shall Appraiser, firm, or professional organization of which Appraiser is affiliated with be identified without the written consent of Appraiser.

It is suggested that who possess this report should not give copies to others. Legal advice should be obtained on potential liability issues before this is done. Anyone who gives out an incomplete or altered copy of the report (including all attachments) does so at their own risk and assumes complete liability for any harm caused by giving out an incomplete or altered copy. Appraiser does not assume any liability for harm caused by reliance upon an incomplete or altered report of the report given out by others. Anyone with a question on whether their copy of a report is incomplete or altered should contact Appraiser.

Values and conclusions for various components of the property as contained within the report are valid only when making a summation: they are not to be used independently for any purpose and must be considered invalid if so used. The allocation of the total value in this report between land and improvements applies only under the reported highest and best use of the property. The separate valuations for land and buildings must not be used in conjunction with any other report and are invalid if so used.

Discuss your mineral property appraisal, mining business valuation, or other mineral industry related concerns with Mineral Business Appraisal:
Michael R. Cartwright  michael@minval.com
Five Claret Court, Reno, NV  89512-4744
Tel/Fax: 775-322-9028

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