060223 Final Draft- Deed Restrictions Exhibit AFINAL DRAFT 060223 WRF DEED EXHIBIT A 1
Pierson Pointe:
Exhibit A
In compliance with the provisions of the Wilmington Realtor Foundation Homeownership
Program (WRFHP), the Property is conveyed subject to the following specific covenants:
1. In perpetuity:
A. The Grantee must use the Property as their primary residence. At any time that the
property is not a primary residence, the property must be sold in accordance with 1D2c.
B. The Property may not be used as a rental or income producing property. If the
property is found to be used as a rental; the tenant will be evicted at the expense of the
Grantee. Multiple violations can result in the HOA foreclosing on the property.
C. Initial and Subsequent Buyers must meet Qualifying Income Limits of 80-120% of
the AMI for the Wilmington MSA according to:
https://ami-lookup-tool.fanniemae.com/amilookuptool/
D. WRF retains the option to:
1. purchase the Property, OR
2. to select a Buyer from the Homeownership Program, when:
a. the Grantee chooses to sell, assign, voluntarily transfer or convey the
Property, regardless of cause.
b. a Grantee of the Property dies and the estate chooses to sell the
Property.
c. Grantee is no longer using the residence as a primary residence as
required in 1A.
d. Grantee has violated the restriction on rental or income
producing status noted in 1B.
E. The Sale Price shall be determined by WRF as specified in Section 2C below.
F. The Grantee and WRF shall share in the Capital Gain per the schedule outlined
in Section 2D below.
G. The Grantee’s ability to Refinance the property is restricted to the terms and
conditions in Section 3A-D below.
FINAL DRAFT 060223 WRF DEED EXHIBIT A 2
2. Regarding Resale:
A. Grantee must provide WRF 30 days written notice of intent to sell,
assign, voluntarily transfer or convey the Property. Property may not
be offered for sale by the Grantee during this 30 day period.
B. During said 30 days:
1. WRF shall determine the Authorized Sale Price in consideration
of Paragraph C below.
2. WRF will exercise their option to purchase the Property OR
3. WRF will select a Qualified Buyer from the WRF Homeownership Program to
purchase the Property.
4. Should WRF waive their option to purchase, AND fail to provide Qualified
Buyer from the WRF Homeownership Program within 30 days from the date
of written notice, the Property will be eligible to be placed on the open
market, under the Sale Restrictions in Section 2C-D
5.WRF will provide Grantee with a Buyer Package including a “Resale
Disclosure” that MUST be provided to potential Buyers.
C. The Sale Price shall be determined by WRF as follows:
1. A maximum of 2% per year increase in the sale price of the Property AND
2. Sale Price must be affordable to Subsequent Buyer(s) who earn
80-120% AMI for the Wilmington MSA according to:
https://ami-lookup-tool.fanniemae.com/amilookuptool/
D. Capital Gain (defined as the difference between the current sale price minus 103% of
the prior sale price) will be divided between WRF and Grantee as follows:
Years of ownership per initial Grantee
and each subsequent Grantee
WRF
%
Owner
%
1-2 100 0
3-5 50 50
6 20 80
FINAL DRAFT 060223 WRF DEED EXHIBIT A 3
EXAMPLE: The following chart represents the POTENTIAL MAXIMUM sale price
and MAXIMUM CAPITAL GAIN AND DISTRIBUTION for the INITIAL Grantee if they
sell the Property in years 1-6.
The following values have been used for illustration:
Initial Purchase Price $250,000
3% Closing Cost $7,500
103% Purchase Price $257,500
MAXIMUM annual appreciation rate of 2% specified in SECTION 2C1 above has
been applied to the MAXIMUM Sale Price for each year of ownership.
NOTE: Actual Maximum Sale Price and related Maximum Capital Gain MAY BE
LESS depending on WRF’s pricing of the Property in compliance with Section
2C1-2 above.
Years of
Ownership
103%
Purchase
Price
MAXIMUM Sale
Price per Pricing
Limitations 2C1-2
(NOT Guaranteed)
MAXIMUM Capital
Gain= MAXIMUM
Sale Price-103%
Purchase Price
(NOT Guaranteed)
WRF
Split
%
WRF Split
$
Grante
e Split
%
Grantee
Split $
(NOT
Guarantee
d)
1 257750262905 5155 100 5155 0 0
2 268163 10413 100 10413 0 0
3 273526 15776 50 7888 50 7888
4 278997 21247 50 10623 50 10623
5 284577 26827 50 13413 50 13413
6 290268 32518 20 6504 80 26015
FINAL DRAFT 060223 WRF DEED EXHIBIT A 4
3. Refinancing of mortgage:
A. WRF must be notified in writing to Wilmington Realtor Foundation 1826 Sir Tyler
Drive, Wilmington, NC 28405, if the Grantee desires to refinance the Property.
B. Only the outstanding balance of the first mortgage plus transaction fees can be
refinanced.
C. Cash-out refinance is not permitted.
D. Home Equity Loans and Lines of Credit are not permitted.
E. If a Grantee refinances the Property with a cash-out mortgage, or opens a home
equity line of credit or home equity loan, without notifying WRF, a lien will be placed
against the property, by WRF, for any amount over the payoff amount of the first
mortgage plus transaction costs.