RETAIL LOT SALE PROGRAM - SUMMARY
Effective April 2, 2010

The developer of Heron Bay is releasing a select group of custom lots to individual consumers to purchase under this Retail Lot Sale Program.  Our goal is to create an opportunity for future homeowners to secure a home site now, while interest rates are at historic lows.  Once a lot is purchased, the construction process can be delayed for a period of up to two years, thereby allowing time to sell an existing home, arrange financing, or design a new home.

How the Program Works

A list of available lots to purchase can be obtained from the Custom Sales Team.  Once you have selected a lot, you’ll need to pay an earnest money deposit which is equal to 10% of the lot price.  The lot must then be closed within 45 days.

Construction of your new home must begin within two years of the lot closing date and construction must be completed within 12 months after construction starts.  You may hire either a builder from the existing Heron Bay builder team or a builder of your choice which has been approved by the developer.

Use of the Homeowner’s Association Amenities

Upon closing your lot, you will automatically become a member of the Homeowner’s Association (HOA) and the rights, privileges and payments that go with it.  You will have full access to all amenities and services provided to all Heron Bay homeowners (trails, parks, pools, tennis).

The HOA payments which are required at the time of lot closing include a one-time initiation fee and an annual fee which is prorated on the date of the lot closing.

Maintenance of the Lot After Closing

To ensure the community remains attractive and well landscaped, you will be required to maintain your lot to the level outlined in the Owner Guidelines.

To ensure that each lot is maintained, each purchaser will be required to place a compliance deposit with the developer of $5,000 at the time of closing.  If you do not maintain your lot, you’ll be notified to bring the lot up to the standard outlined in the Owner Guidelines.  If the deficiencies are not corrected in a timely manner, the developer may elect to correct the deficiency by using your compliance deposit.  You will then be required to bring your compliance deposit back to the full amount of $5000.  

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 compliance deposit will be held in an interest-bearing trust account and may be used in the event that you do not comply with the Owner Guidelines and your approved plans.  The full amount, less any funds used to correct any non-compliance, plus any interest earned, will be fully refunded upon review and approval of the ARB and the receipt of your certificate of occupancy from the County. 

Builder Approval

You can bring your builder to Heron Bay, however they must fill out a Builder Application Form and be approved by the developer.  You may also choose to select a builder which has been pre-approved by the developer.

Contract to Build

When you are ready to begin construction, a Contract to Build must be executed between you and your approved builder.  The Contract to Build will be drafted by the onsite listing broker.  The listing broker will be entitled to a commission in the amount of 5% of the construction contract amount for the home, less any previous lot commission paid by you to the listing broker.  In the event you involve a cooperating broker in the transaction, the commission amount would be increased to 6% and would be evenly split between the listing broker and the selling broker.

Marketing Fee

You or your builder will be required to pay an additional fee related to the construction contract for the home to be built on your lot which is equal to 1.5% of the total amount of the construction contract of your home, called the marketing fee.  The marketing 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, or (ii) the date of issuance of the Certificate of Occupancy for the home.

Submittal to the Architectural Review Board (ARB)

The purpose of the ARB is to ensure that each house is compatible and consistent with the Covenants, the Owner Guidelines and the community.  Before beginning any work on a lot, approvals must be obtained from the ARB for the site plan, floor plans and elevations.  When the house reaches the “closed-in” stage of construction, exterior house material, color selections and a landscaping plan must be approved by the ARB.  

Once construction has commenced, the ARB will conduct periodic reviews to ensure the home is being constructed according to the Owner Guidelines and approved plans.
 

Requirement to Construct a Home

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

Refer to the details of the Lot Purchase Agreement for developer’s repurchase of lot provisions. This right to repurchase terminates upon the issuance of a Certificate of Occupancy for a single-family residential dwelling upon the lot. 

Developer’s Right-Of-First-Refusal

In the event you want to sell your lot prior to the completion of the house, the developer will have the right-of-first-refusal to purchase the lot on the same terms as offered in writing to a third-party buyer.  The developer 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. 

Other Costs and Fees

You will be responsible for all costs related to your home construction, including construction loans, sewer and water connection fees, permits, application fees, review fees, HOA fees, commissions etc.  Review fees include a fee of $600 for the required site plan and $500 for the architectural review of the house plans. These review fees are due at the time of final plan architectural plan submittal. 

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.