Local Condition Disclosure Addendum “A”

California Association of REALTORS® form SBSA

(Statewide Buyers and Seller Advisory)
Property Address _________________________________________________________________________________
City of _________________________________________ County of _______________________________, California.
Buyer is hereby informed by CENTURY 21 Alpha and CENTURY 21 Alpha Fine Homes & Estates 21 Alpha and that the REAL ESTATE
TRANSFER DISCLOSURE STATEMENT is not a substitute for property inspections by licensed professionals, including but not limited to
property inspectors, general contractors, pest control operators, engineers and architects.

VERIFICATION: The information provided by Seller and others has not been verified.
COMMUTING: Buyer is hereby informed that the traffic during commuting hours is very heavy. Buyer may experience delays in traveling to
work or other destinations.

SCHOOL DISTRICTS: Buyer should contact the appropriate school district to verify the district in which the subject property is located
(attendance area) and the schools his or her children will attend.

AGE: Buyer is hereby informed that the subject property is a used property (not new) and WILL NOT meet the same expectations as a new prop-
erty. Due to the age of the property, some or all of the major systems including but not limited to built-in appliances (including free-standing oven
and range, if any), plumbing, air conditioning, electrical, water, sewer/septic, roof, structural, foundation, mechanical, security, pool/spa systems
and any personal property included in the sale may be at the end of its useful life. The Buyer is hereby informed by CENTURY 21 Alpha and
CENTURY 21 Alpha Fine Homes & Estates to make their own independent investigation regarding the useful life of the components of the herein
property.

STORAGE TANKS. Permits are required for tanks storing flammable or combustible liquids whether or not they are in use. For those tanks pres-
ently in use, or intended for future use, an operational permit must be obtained. Buyer is advised to consult with city or county authorities when
storage tanks are present on the property to determine local requirements

USE AND DESIGN RESTRICTIONS. Local governments impose restrictions on the use of the property and improvements or modifications. If
the Buyer contemplates any change of use or construction, he or she should verify with the local planning and building department whether the
proposed change is permissible. It is also recommended that the Buyer verifies the legality of any "in law or "granny" unit on the property. Home-
owners often make changes without permits and in violation of building codes and local regulations. CENTURY 21 Alpha and CENTURY 21 Al-
pha Fine Homes & Estates does not investigate the status of zoning, or code compliance and the parties are to satisfy themselves concerning these
issues.

LIMITATION OF AGENCY: CENTURY 21 Alpha and CENTURY 21 Alpha Fine Homes & Estates and its agents are not qualified to give
legal, tax, accounting, or insurance advice. For these questions, you should consult with your attorney, accountant, or insurance broker. In addition,
CENTURY 21 Alpha and CENTURY 21 Alpha Fine Homes & Estates and its agents do not guarantee the condition of the property, or verify rep-
resentations made by the parties or their inspectors.

“13 SEER" REQUIREMENTS: As of January 23, 2006, the United States Department of Energy requires central air conditioners and heat pumps
to meet an efficiency rating of 13 SEER or above. Most systems installed in homes prior to this date are rated at an 8 to 10 SEER. If the central air
conditioner or heat pump, or any of the component parts, need to be replaced after January 23, 2006, the central air conditioner or heat pump system
must be replaced with 13 SEER rated equipment. 13 SEER rated equipment may be much larger and heavier than the equipment that is being re-
placed. Such replacement may require substantial and costly modifications to the coil, gas lines, line sets, valves, transitions, plenum, electrical,
pads, stands and/or other components.

CENTURY 21 Alpha and CENTURY 21 Alpha Fine Homes & Estates and its agents cannot and will not verify the SEER rating of central air
conditioners or heat pumps that are currently installed in any property. The Buyer(s) is advised to verify the SEER rating of the central air condi-
tioning or heat pump system of the subject property through the home inspector or other professional. The Buyer is further advised to inquire of the
Home Warranty Company selected by the Buyer, if 13 SEER rated replacement equipment may be included in the Home Warranty.

CENTURY 21 DISCLOSURE: CENTURY 21 as a franchise system may appear to the Buyer and Seller as a single Real Estate entity. However,
CENTURY 21 Alpha and CENTURY 21 Alpha Fine Homes & Estates is a member of said system as a franchisee and is independently owned and
operated. The locations of the offices of CENTURY 21 Alpha and CENTURY 21 Alpha Fine Homes & Estates are only those located at 5504
Monterey Highway, San Jose, CA 95138, 1901 South Bascom Avenue, Suite 100 & 500, Campbell, CA 95008, 1900 McCarthy Blvd. Suite 400 7
401, Milpitas, CA 95135, 260 Los Gatos Saratoga Road, Los Gatos, CA 95030 and 4300 El Camino Real, Suite 100 , Los Altos, CA 94025.

Buyer and Seller acknowledge receipt of a copy of this page, which constitutes page 1 of 4 pages
BUYER'S INITIALS (__________) (__________) SELLER’S INITIAL (__________) (__________)
NEW DUCT SEALING REQUIREMENTS: (Letter To Sellers regarding disclosure obligations to potential buyers and appraisers): Begin-
ning October 1, 2005, you must have your home's ducts tested for leaks when you have a central air conditioner or furnace installed or replaced.
Ducts that leak 15 percent or more must be repaired to reduce the leaks. After your contractor tests and fixes the ducts, you choose whether to have
an approved third-party field verifier check to make sure the duct testing and seating was done property or to have your house included in a random
sample where one in seven duct systems are checked.

Duct sealing is not required in the following situations; 1) when homes are in specific coastal climates; 2) when systems have less than 40 feet of
ductwork in unconditioned spaces ace attics, garages, crawlspaces, basements or outside the building, or 3) when ducts are constructed, insulated or
sealed with asbestos. There also are specific alternatives that allow high efficiency equipment and added duct insulation to be installed instead of
fixing duct leaks.

You also should know that any contractor failing to obtain a required building permit and falling to test and repair your ducts is violating the law
and exposing you to additional costs and liability. Real estate law requires you to disclose to potential buyers and appraisers whether or not you
obtained required permits for work done on your house. If you do not obtain a permit, you may be required to bring your home into compliance
with code requirements for that work and you may have to pay penalty permit fees and fines prior to selling your home.

The greatest energy use in California homes is for central air conditioning and heating. Most homes with central air conditioning and heating sys-
tems have ducts that were never properly sealed. The average home's ducts leak around 30 percent of the conditioned air outside the home. These
leaks are taking money straight out of your pocketbook. Properly sealed ducts will lower your energy bills, reduce pollution Inside your home, and
help to avoid a repeat of the inconvenience and health and safety risks that we suffered during the power blackouts in 2000. For more information,
please contact the Energy Commission Efficiency Hotline at (800) 772-3300, or visit our website at www.enerov.ca.00vititle24/chanoeout.

These new requirements may increase the costs associated with replacing or installing a central air conditioner, furnace and/or HVAC system.

CENTURY 21 Alpha and CENTURY 21 Alpha Fine Homes & Estates and its agents cannot and will not verify the duct sealing requirement.

Buyer is advised that CENTURY 21 Alpha and CENTURY 21 Alpha Fine Homes & Estates, its agents and employees: (a) Do not guaran-
tee the condition of the property; (b) Shall not be responsible for defects that are not known to CENTURY 21 Alpha and CENTURY 21
Alpha Fine Homes & Estates or are not visually observable in reasonably accessible areas of the Property; (c) Cannot verify information
contained in inspection reports or representations made by others; (d) Do not guarantee the performance of others who have provided
services or products to Buyer or Seller; (e) Do not guarantee the adequacy or completeness or repairs made by Seller or others; (f) Cannot
identify Property boundary lines; (g) Do not decide what price buyer should pay or a seller should accept; and (h) Buyer shall seek desired
assistance from appropriate professionals; (i) have not verified the information provided by Seller and others.

The Following Paragraphs When Checked Are Incorporated Into This Disclosure:
The item (s) checked below might influence your decision regarding the purchase of the subject property. Should
you wish additional information, you are encouraged to do further investigation.

_______ SOIL PROBLEMS: Buyer is hereby informed that the property is located in a neighborhood where serious soil problems exist. It is pos-
sible that serious soil problems will occur on the subject property in the future. Buyer is strongly advised to make extensive inquires regarding po-
tential soil problems that may occur on the subject property.

_______ FRESH PAINT: Buyer is hereby informed that Seller or painters hired by Seller have recently painted the inside and/or outside of the
subject property. During the painting process scraping and filling of cracks may have hidden any defects that might otherwise be evident. ("Red
Flags") Buyer is strongly advised to make further inquiries of Buyer's inspectors regarding the consequences of fresh paint.

_______ REMODELED PROPERTY: Buyer is hereby informed that the subject property has been remodeled by the Seller, during the remodel-
ing process the Seller or Seller's contractors may or may not have obtained the necessary building permits. In addition the Seller may or may not
have remodeled or replaced any of the major systems including, but not limited to heating, plumbing, air conditioning, electrical, water, sewer/
septic or pool/spa. Since the scope of the Seller's remodeling is not visibly apparent the Buyer is strongly advised to make inquiries regarding the
consequences of remodeling. (Please refer to the illegal addition and/or modification section of this supplement for more information)

_______ PRIVATE ROADS. If the property shares a common driveway or abuts a private road shared with other property, the Buyer should in-
quire as to the existence of any road maintenance agreement. Absent of any such agreement, the law provides that the owners will share the cost of
maintaining the roadway proportionately to the use made of the easement by each owner. (See Civil Code §845.)

_______ HILLSIDE PROPERTIES: Most properties located on or near a hill (property on or near land that slopes) have water drainage prob-
lems. The seller may not be aware of any drainage problems due to drought or other phenomena. Buyer is strongly advised to make extensive in-
quires regarding potential drainage problems that may occur on this hillside property.

_____ POWER PLANT DISCLOSURE: The Buyer of the above reference property are made aware of the Calpine Metcalf Energy Center
Power Plant which is located on Monterey Road at the north end of the Coyote Valley about six miles from Morgan Hill, approximately 126 acres
in the vicinity of Tulare Hill. Buyer is encouraged to investigate with City, State, Utilities Commission, or any other governing body as to the cause
and effect, if any, it may or may not have on property values and resale values in the future, during their inspection contingency period.

Buyer and Seller acknowledge receipt of a copy of this page, which constitutes page 2 of 4 pages
BUYER'S INITIALS (__________) (__________) SELLER’S INITIAL (__________) (__________)
_____MORGAN HILL SCHOOL TRANSPORTATION DISCLOSURE: Based on recent decisions, the Morgan Hill Unified School District
has imposed an annual transportation fee to transport children to school. If concerned, the Buyers are advised to contact the Morgan Hill Unified
School District for details on this transportation fee.

_____ POSSIBLE WELL CONTAMINATION: Recent studies have revealed that some wells in Morgan Hill and San Martin contain the chemi-
cal perchlorate. Other wells may also be contaminated by this chemical. Any questions about the chemical contamination, including but not limited
to its impact on any given property, should be directed to the Santa Clara Valley Water District by calling (408)265-2607 or by visiting their web-
site at www.valleywater.org. Buyers and Sellers are encouraged to secure any and all expert inspections or reports necessary to determine the con-
dition and/or quality of well water. Buyers should not rely solely on information supplied by Sellers as to water quality or quantity.
CENTURY 21 Alpha is not an experts on water quality or quantity and thus will not provide any services or advise on this topic.

_____ AIRFIELDS: There are four airfields in Santa Clara County: San Jose International Airport, Reid-Hillview, Moffett Federal Airfield, Palo
Alto Airport. Frequency of flights and air patterns can create sound for some properties.

_____ SHORELINE AMPHITHEATER, MOUNTAIN VIEW: Concerts are held at this outdoor theater from time to time. Sound from these
concerts can carry over into portions of Mountain View, Palo Alto, and Los Altos.

_____ PAUL MASSON WINERY/ MONTALVO CENTER FOR THE ARTS: These two "Centers" sponsor outdoor concerts during the sum-
mer months. Sounds from these concerts can carry over into portions of Saratoga.

_____CALTRAIN COMMUTER SERVICE: Commuter trains run at regular intervals from Gilroy to San Francisco. Sound from these trains can
carry over into portions of nearby communities.

_____SOUTHERN PACIFIC TRAIN: A Southern Pacific train runs from San Jose to Cupertino and back to San Jose three times a week. Sound
from this train can carry over into portions nearby communities.

_____POSSIBLE SCHOOL OVERCROWDING: If any representations have been made by the Seller, Agents or promotional literature regard-
ing which schools might serve this property, Buyer is hereby advised of the following:
The neighborhood school, normally serving this property, may or may not have space available in the upcoming school year due to overcrowding.
Buyer is advised to make his or her own investigation of school availability directly with the registration department of the respective school dis-
trict.

_____ GROUND WATER RELATED ISSUES AND NATURAL SPRINGS/RAIN WATER RUNOFF: Buyer is hereby advised that many
properties in Santa Clara Valley have natural springs and/or rain water runoff issues that may result in standing water, dry rot, flooding, mold, water
damage, foundation failure or other potential damage to the property. In addition, some properties have faulty grading, clay soil or inadequate
downspout and gutters which can also cause additional problems. Should Seller disclosures, visual inspection of the property, or any professional
inspection reports indicate a current or prior water related issue, Buyer is hereby advised by their Broker to thoroughly investigate the problem, its
cause and the possible repair cost to rectify the problem with qualified professionals (e.g. Geo-Tech Engineer, Mold Inspector, Abatement Experts,
Foundation Contractors, etc).

_____ SANTA CLARA VALLEY WATER DISTRICT'S OPERATION OF ANDERSON RESERVOIR: Anderson Reservoirs owned and
operated by the Santa Clara Valley Water District as a water supply reservoir. The District captures local rainfall in *creamy* throughout the winter
months and in the spring and summer makes releases from the from the reservoir to replenish the underground water supply. Water pumped from
the underground provides about half the water used in Santa Clara Valley.

Water from Anderson Reservoir is also used as one of the supply sources to the District’s Rinconada and Santa Teresa water treatment plants in Los
Gatos and south San Jose. After delivery to the plants the Anderson Reservoir water is treated and delivered directly to water companies for distri-
bution to homes and businesses.

When there is sufficient load water in Anderson to allow the use of the reservoir for recreation, the Santa Clam County Parks and Recreation De-
partment operates recreational activities, i.e., water skiing, boating, fishing, No swimming is allowed at Anderson Reservoir because of state De-
partment of Health Services' regulations that continual whole-body contact sports not be allowed in reservoirs that supply drinking water treatment
plants.

Because die amount of local rainfall the valley will receive each year cannot be predicted, there is no way to guarantee that Anderson Reservoir will
fill up each winter, or that there will be sufficient water for recreation.

The District does have the capability of putting a limited amount of imported water from San Luis Reservoir located in Merced County into Ander-
son, but this supply is not sufficient to maintain the reservoir as a year-round recreation facility. Water levels in the reservoir depend upon local
rainfall and use of the water to supply groundwater recharge and the water treatment plants.

Buyer and Seller acknowledge receipt of a copy of this page, which constitutes page 3 of 4 pages
BUYER'S INITIALS (__________) (__________) SELLER’S INITIAL (__________) (__________)
_____ ADDITIONAL DISCLOSURES: Buyer is hereby informed that additional information relevant to the condition of the subject property is
contained herein below: __________________________________________________________________________________________________
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; Nothing contained herein is A SUBSTITUE FOR PROPERTY INSPECTIONS, therefore, again, the buyer is advised by CENTURY 21
Alpha and CENTURY 21 Alpha Fine Homes & Estates and its agents to obtain a property inspection or other inspection the buyer may desire and
to include an inquiry regarding any disclosure made herein.

Receipt of a copy of this Local Condition Disclosure Addendum consisting of 4 pages, Statewide Buyer and
Seller Advisory consisting of 10 pages, the RED FLAGS INSPECTION CHECKLIST, consisting of 1 page,
the publication entitled "Earthquake Safety and Environmental Hazard Guide” and the completed RESIDEN-
TIAL EARTHQUAKE HAZARD REPORT if appropriate is hereby acknowledged.

Buyer ____________________________________________________ Date: ____________, 20 _____

Buyer ____________________________________________________ Date: ____________, 20 _____

Seller ____________________________________________________ Date: ____________, 20 _____

Seller ____________________________________________________ Date: ____________, 20 _____

Each Office is Independently Owned and Operated. Equal Housing Opportunity.

© 2008 CENTURY 21 Alpha. All rights Reserved.
Nothing herein may be reproduced in whole or in part without written permission from CENTURY 21 Alpha.