We have elected to release a select group of lots to consumers under a Retail Lot Sale Program. Our goal is to create an opportunity for potential future homeowners, who may not be ready to build their new home immediately, to secure their homesite now while interest rates are at historic lows. Once you have acquired a lot, the construction process can be delayed for a period of up to two years, allowing you time to sell your existing home, arrange financing, or to design your new home.

How the Program Works

A list of select homesites available to purchase can be obtained from the Custom Sales Team at Heron Bay. Once you have selected a lot, you will be required to place a deposit of 10% of the lot price as earnest money and will then have up to 45 days to close.

Then, you must begin construction on your new home within two years of the lot closing date, and complete construction within 12 months after commencement, utilizing either a builder from the current Heron Bay building team or a new builder approved by the Developer.

Homeowner’s Association, and Use of the HOA’s Amenities

Upon the closing of a lot in Heron Bay, you will have full access to all amenities and services provided to all Heron Bay homeowners, as long as you remain current with your annual HOA dues.

The general 2008 HOA dues at Heron Bay Golf & Country Club include a one-time initiation fee of $275 due at the closing, and an annual fee of $510, prorated for the initial year. These rates are subject to change.

Once you have closed, take a copy of the settlement statement to the Heron Bay Information Center to receive your amenity access cards and a welcome package.

Maintenance of the Lot After Closing

To ensure the community remains attractive and well groomed, all lot purchasers will be required to maintain their lots to the level outlined in the Maintenance Standards, which are defined in the Construction & Design Guidelines.

To ensure that each homesite is maintained to the level specified in the Maintenance Standards, each purchaser will be required to place a Compliance Deposit with the Developer of $5,000 at the time of closing. A representative of the ARB will notify you in writing if there are any maintenance issues with your lot, and you will have one week to correct these deficiencies. If the deficiencies are not corrected, the ARB may do the clean up, and the costs will be paid from the Compliance Deposit – then you will be required to bring the Compliance Deposit back to the full amount.

Once you begin construction of your home, the Compliance Deposit must be increased to 5% of the contract construction cost, not to exceed $25,000. This deposit will be held in an interest-bearing trust account and may be used only in the event that the purchaser or purchaser’s builder does not comply with the Construction & Design Guidelines and Maintenance Standards. The full amount, less any funds used to correct non-compliance, plus any interest earned, will be fully refunded upon the receipt of your Certificate of Occupancy from the County.

Builder Approval

While there are several advantages to selecting one of the talented builders already building at Heron Bay, lot purchasers may elect to submit a builder for approval into the Heron Bay program using the Builder Application form.

Any builder proposed by a purchaser would be obligated to meet the same qualification requirements as the other Heron Bay builders, including a minimum lot purchase and speculative home requirement as outlined in the Custom Builder Program for Heron Bay. Acceptance into the program will be subject to the approval of the Developer in its sole discretion. The requirements for participation in the Heron Bay Custom Builder Program as well as an application form are available from the Custom Sales Team.

Architectural Review Board Plan Submission Process

The purpose of the ARB is to ensure that each house is compatible and consistent with the Covenants, the Design Guidelines and character of the community. Before beginning any work on any lot, Final Design Review approvals must be obtained from the ARB for each of the following: Site Plan, House Plans and Elevations. When the house reaches the “closed-in” stage of construction, material selections, exterior color selections, and a Landscaping Plan must be approved (the review process is outlined in Section VI of the Design Guidelines.)

Construction & Design Guidelines

The purpose of these guidelines is to outline the unifying standards of design that will result in the creation of a harmonious and distinctive environment. It is not the intent of these guidelines to limit design creativity, but rather to foster designs that are of tasteful architectural styles and of quality construction and detail.

Prior to commencing construction, you will be required to submit Architectural Plans, Site Plans and Landscape Plans for approval by the ARB and its consultants. The fees for these reviews will be waived if you commence construction within 12 months from the lot closing. For the second year, the fees will be:

• $950 for the Architectural Review, and
• $600 for the Site Plan and Landscape Plan Review

Once construction has commenced, the ARB will conduct periodic reviews to ensure the home is being constructed according to the Construction & Design Guidelines.

Requirement to Construct a Home

Once you have closed on the purchase of your lot, you must begin construction within 24 months, and construction must be completed within 12 months after the construction start date.

Within the Lot Purchase Agreement, there are provisions which state that, in the event the purchaser fails to begin construction within 24 months of the lot closing date or if the home is not completed within 12 months of the start date, the Seller shall have the right but not the obligation to repurchase the lot. In the event the Seller exercises this right, the consideration paid by the Seller would be an amount equal to the original purchase price paid by the purchaser for the lot plus the actual documented cost of improvements made to the lot (if any) by the purchaser at the time of repurchase. The repurchase price would not include any interest charges, loan fees or carrying charges, closing costs, attorney’s fees, personal expenses, or general overhead expenses of the purchaser. This right to repurchase terminates upon the issuance of a Certificate of Occupancy for a single-family residential dwelling upon the lot.

Seller’s Right-Of-First-Refusal

In the event the purchaser desires to sell the lot prior to the completion of the house, the Seller will have a right-of-first-refusal to purchase the lot on the same terms as offered in writing to a third-party buyer. The Seller will have ten business days to exercise its right of first refusal. If the lot is transferred to a new purchaser, the new purchaser shall be obligated to meet and comply with all terms and conditions of the Retail Lot Sale Program.

Builder Fee

Purchaser or Purchaser’s contractor or builder will be required to pay an additional fee related to the construction contract for the home to be built on the Lot equal to four percent (4%) of the total amount of the construction contract of the home (“Builder Fee”). The Builder Fee is payable at the time of the earlier of (i) the initial closing of the construction loan or any other loan from which proceeds are used to construct improvements on the Lot, if applicable or (ii) the date of issuance of the certificate of occupancy (“Certificate of Occupancy”) for any dwelling constructed on the Lot. In the event that the Builder Fee is not paid by Purchaser or Purchaser’s contractor or builder on or before the date which it becomes due and payable as set forth above, then Purchaser shall pay the Builder Fee to Broker upon written demand therefore and Broker shall have a right to a lien on the Lot in the event of Purchaser’s failure to the amount due within thirty (30) days after such written demand.

Other Costs and Fees

You will be responsible for all costs related to your home construction, including construction loans, sewer and water connection fees, etc.

Construction Loan Resources

A specialized lot loan program has been created for the Retail Lot Sale Program at Heron Bay. The Custom Sales Team has details on this program.

For more information, call 770.898.4891, request more information online, or email our custom home sales team.