Upcoming Auction June 29th Private Residence Club in Santa Barbara, CA 24 One-Eighth Share, Deeded Ownership Units up for Auction.

FREQUENTLY ASKED QUESTIONS (FAQ):

1. These are beautiful fractional residences. Why are they being sold at auction?
The Seller has determined that the most timely and cost-effective method of accelerating the sellout of this exciting property is to offer it in a sealed bid auction. The auction allows the Seller to reduce the marketing and carrying costs of a conventional marketing program and sell a significant amount of inventory in a very short period of time. The seller is prepared to share their savings with you, in the form of discounted prices at the auction. Therefore, the auction will be your final opportunity to purchase these fabulous fractional residences at Auction Pricing.

2. What is meant by an eighth-share ownership?
Every residence has been divided into eight 1/8th fractional interests. Owners receive a deeded one-eighth real estate interest in a specific residence that entitles you to a guaranteed minimum of four weeks but up to an unlimited amount of use at Club Casa Mina each year. A deed will be recorded in the public records of Santa Barbara County, and title insurance will be provided to each owner. While your deed will be for one particular unit, it is possible that you may stay in a comparable unit during different weeks based on availability. (Further details are available in the Rules and Regulations contained in the Bidder’s Information Packet)

3. What form of ownership does fractional ownership provide?
It is warranty deeded fee simple property, which you may sell or pass on to your heirs as with any other type of real estate. Owner’s rights are fully described in the Property Report. You may occupy it yourself, rent it out or exchange your week(s) within the Resort to Resort vacation home exchange program.

4. Is there storage available on the premises?
Owner storage is included. Each residence has a dedicated permanent storage space for each owner for the on-site storage of personal items.

5. How do I reserve my weeks?
Reservations are made at the beginning of each year for the Planned Vacation weeks. Owners are sent a Planned Vacation Reservation Form in the Beginning of January and this form is due to Club Management by February 15th. Complete Details on the reservation process can be found in the Reservation Summary of the Bidder’s Information Packet or by reading the Rules and Regulations of Club Casa Mina. 

6. What are the advantages of Residence Club ownership?
Club Casa Mina has been designed to proved owners with generous and flexible vacation uses; offer exceptional services and amenities not normally available with a Santa Barbara real estate purchase; remove the worries typically associated with vacation-home ownership; and significantly reduce the financial burden through shared ownership of the residences and Club facilities.

7. As an owner, how often can I vacation at my Club?
As often as you wish, subject to the Club’s reservation policies. Owners have the flexibility of reserving Club vacations well in advance and also on a short notice basis. Each year, owners may reserve up to 28 days of planned vacations in advance, this leaves and abundant opportunity for additional vacations. There is no limit to the amount of use. If some owners visit their Club less, others can visit more.

8. How many ownership shares will be sold?
Club Casa Mina strictly limits the number of owners to no more than eight per residence. There will only be 56 Club Casa Mina owners. The very limited ownership and prestigious Santa Barbara address make Club Casa Mina one of the most exclusive residence clubs in the country.

9. Can more than one family or individual share a single ownership?
Yes! Individuals can form partnerships to control an ownership or hold title as tenants in-common. It will be up to the joint owners to allocate lodging for that ownership in compliance with the Club’s reservation privileges.

10. Can owners reserve more than one residence during the same period?
Yes. This is one of the unique residence club benefits. Because owners are not restricted to a particular residence, they can reserve more than one residence at a given time if sufficient residences are available.

11. Do owners pay any lodging fee while vacationing at the Club?
No, there is no fee while vacationing at the Club, unless additional housekeeping services are desired.

12. Are there any annual fees?
Yes, the annual fees pay for the professional management and operation of all Club residences and facilities. Included in these fees are funds for staff salaries, supplies, insurance, maintenance, trash removal, legal/accounting, all utilities including Cable TV, and reserves for replacement and/or refurbishing of the Club facilities.

13. How will the properties be bid?
Currently the developers have released a limited number of these luxurious, new, fractional residences in the heart of Santa Barbara to be offered in this rare grand-opening auction. Twenty Four of the fractional shares will be offered.

14. Please explain the Sealed Bid Process?
A Sealed Bid Auction means that each bidder submits their highest offer to our offices on June 15th, 2007. The Seller will then evaluate these bids and will choose the twenty highest bids

15. Is financing available, or do I have to pay cash?
The Seller has arranged for SG Financial to receive loan applications for the convenience of interested bidders. SG Financial is not a representative of the Seller, please see the financing section of this Bidder’s Information Packet for complete details.

16. What is the Buyer’s Premium in this auction?
All sales at auction require that the Purchaser pay a premium equal to 7.5% of the high bid price. This amount is added to the high bid price in order to arrive at the Total Purchase Price. In other words, if the high bid were $200,000, a Buyer’s Premium of 7.5% or $15,000 would be added creating a Total Purchase Price of $215,000.

17. What do I need to do in Order to Bid?
The auction will be conducted in a Sealed Bid Auction format. In order to bid you need to attend one of the scheduled open houses, purchase a Bidder’s Information Packet, and submit your bid on the approved Purchase and Sale Agreement with the correct Certified or Cashier’s Check amount.

18. Can I use a personal or company check, money market check or letter of credit to bid at the auction?
No. It must be a certified or cashier's check made payable to First American Title Insurance Company as escrow agent. The check should be for $7,500 if you are bidding on a two bedroom share and $10,000 if you are bidding on a three bedroom unit.

19. What does the term "With Reserve" mean?
The owner reserves the right to accept or reject the high bid within seven business days following the close of the auction.

21. What can I expect to pay at the auction? What do you think they will sell for?
We don't know. It's up to you, the buyer, to determine the final price. Remember that Eight of the eighth shares will be sold Absolute, Regardless of Price.

22. Can I go back to look at the residences being offered at any time or can I only view them during the regularly scheduled On Site Inspections prior to the auction?
You may only enter the properties during the scheduled inspections or just call us to schedule a private showing. Registration at each On Site Inspection is required.