Fractional Dutch Auctions of Commercial Income-Producing Real Estate Properties - TIC Plan Ownership Syndications

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Due Diligence Documentation "Exhibit P-8"

Evidence of Construction Permitting Availability

The following notes are provided pertaining to this exhibit:

  1. What: in order to complete the development cycle for acquiring and/or constructing the assets necessary to operate the business being promoted by the Developer/Sponsor, the proposed Project must provide evidence that:

    1. The Design/Builder has already obtained the required permits to commence construction; or

    2. The Design/Builder provides an affidavit stating the approval of construction permits is pro forma in nature.

  2. When: prior to commencement of the syndication process during the pre-construction phase.

  3. Why: in some localities the availability of construction permits may be constrained by some local or state statutory requirements that injects a significant level of risk into the proposed Project that the Syndication purchasers are in no position to manage for their own benefit.  Accordingly, no syndication process can commence until the Developer/Sponsor provides evidence that construction permits are readily available or have already been obtained.

  4. Where: these records are kept at the offices of the Design/Builder, the onsite construction office and the offices of the Developer/Sponsor.

  5. How: the Design/Builder must provide a copy of the relevant permits or provide an affidavit (in form and substance acceptable to the Syndicator) stating the required building permits application process is pro forma in nature and not subject to some regulatory or political body of government's consequential determination.

  6. What's important: the Developer must have legal control over the real property ownership interests before the syndication process can commence.

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