NO. JEFFERSON CIRCUIT COURT

o5Cl"'orzr,so BRUCE A. ELZY and KIMBERLEY LINN-HART ELZV 8418 Glaser Lane Louisville, Kentucky 40291

VERIFIED COMPLAINT v.

DIVISION

JEFFERSON CIRCUIT COURT DIVISION SIX (S) -PLAINTIFFS

MATTHEW P. DILLMAN Pet~end ExhibitsFJct.

143 Willowbrook Court surrmor.sam:a=copr.P) issued

Taylorsville, Spencer Co., Kentucky 4007 . and SEP 2 2005 TAMARA M. DILLMAN 143 Willowbrook Court Taylorsville, Spencer Co., Kentucky 40071

*****

DEFENDANTS

Come the plaintiffs, Bruce A. Elzy and Kimberley Linn-Hart Elzy, by counsel, and

for their cause of action against the defendants, Matthew P. Dillman and Tamara M ..

Dillman, state as follows:

1. On or about July 1, 2004, the plaintiffs, Bruce A. Elzy and Kimberley Linn-

Hart Elzy, entered into a Real Estate Sales and Purchase Contract with the defendants

to purchase the real property known as 8418 Glaser Lane, Louisville, Jefferson County,

Kentucky 40291 from the defendants. Plaintiffs attach a copy of the contract as Exhibit

"A."

2. At the time the plaintiffs entered into the contract with the defendants,

defendants stated on the Seller Disclosure of Property Condition that they had had

problems with the bathroom drain in May 2002, which was repaired and with which they

had no further problems and with the kitchen drain in December 2002, which they also

had repaired and with which they had no further problem (Seller Disclosure of Property

Condition attached as Exhibit "B"; see answers to 1 (a) and 7).

J

3. At the closing of the sale/purchase on September 30, 2004, defendant

Matthew Dillman informed the plaintiffs that, about one week before the closing, he had)

/ 'l;J c

noticed water bubbling up near the deck where the line from the washer and kitchen

connect and go underground to connect to the sewer drain. Matthew Dillman advised

that he had found a section of the pipe caved in, had replaced a ten-foot section of pipe

himself, and they had had no further problem with it.

4. On October 2, 2004, less than 24 hours after they moved into the Glaser

Lane home, the plaintiffs encountered a problem. When plaintiffs did a load of laundry,

bleach water backed up into their tub, damaging the ceramic tub.

5. Plaintiffs called Dauenhauer Plumbing. The company investigated and

found that the original sewer was cracked and had multiple low spots. The sewer line

also had areas which were not connected and was at the same depth from house to

tap, which is not up to code. Dauenhauer advised sewers in this condition generally do

not work properly and that such a condition generally cannot occur over a short period

of time.

6. As a result of Dauenhauer's findings and opinions, plaintiffs believe that

the defendants knew there were problems with the sewer line but failed to fully disclose

the problems.

7. Plaintiffs have since discovered significant damage in the only bathroom

of the home. When they removed the peel-and-press linoleum tiles from the bathroom,

plaintiffs found the subflooring is cracked, buckled, and bubbled, there is mold behind

the floor and wall, newspapers placed below the flooring, and areas repaired with putty.

Plaintiffs' insurance company has reviewed the damage and stated in its inspection that

there was clearly a past water problem.

8. The plaintiffs have demanded that the Dillmans reimburse them for the

work and repairs they have had to have done to correct the sewer line for their failure to

fully disclose problems of which they knew or should have been aware, but defendants

have adamantly deny they failed to disclose any problems and have denied

reimbursement of the Elzys' expenses.

9. Defendants' failure to adequately and truthfully disclose the problems with

the sewer line is fraud.

10. As a direct result of defendants' failure to adequately and truthfully

disclose the condition of the property, the plaintiffs lacked the knowledge to demand

that the defendants correct the problem, alter the sales price or make other

compromise to cure the problem prior to closing and, thus, as a direct result, the

plaintiffs have been forced to incur repair expenses for which the defendants are liable

in the amount of $7,294.40.

WHEREFORE, plaintiffs, Bruce A. Elzy and Kimberley Linn-Hart Elzy, demand

as follows:

1) Judgment against the defendants, Matthew P. Dillman and Tamara M.

Dillman, jointly and severally, in the amount of $7,294.40 to reimburse them for the

repairs and related work they have had to have performed to correct the undisclosed

problem(s);

2)

3)

4)

5)

For an award of reasonable attorney fees;

For their court costs herein expended;

Trial by jury; and

For any and all other relief to whic they may appear to be ~ntitled. /,.., I

/ . -~/ J. GR:

/ NAB JOYNER & JAF 462 South Fourth Avenue, Suite 2450 Louisville, Kentucky 40202 (502) 583-3081 ATTORNEY FOR PLAINTIFFS

We, Bruce A. Elzy and Kimberley Linn-Hart Elzy, plaintiffs, have read this

complaint and state that all statements and allegations made herein are true and

correct to our best knowledge and belief.

Bv~(A carer BRUCE A. ELZY ·

STATE OF KENTUCKY K~~4U~

COUNTY OF JEFFERSON

Signed, sworn to, and acknowledged before me by Kimberley Linn-Hart Elzy on

the 301h day of August, 2005. My commission

:YPUBLIC, STATE AT LARGE, KY

STATE OF KENTUCKY

COUNTY OF JEFFERSON .. f7'L--Signed, sworn to, and acknowledged before me by Bruce A. Elzy on th~ day

of August, 2005. My commission expires: J zoo

Y-PUBLIC, STATE AT.LARGE, KY

Greah ,ouisville Association of REALTOR LOUISVILLE, KY

INC.

(This is a legally binding contract. If not understood, seek legal or accounting advice.)

REALTOR' SALES AND PURCHASING CONTRACT EQUAL HOUSING

OPPORTUNITY

Telephone

+77 -.5?13 Fax --

:oopcrating Company REALTOR# Agent REALTOR# Telephone

Fax

water softener. if any. is (leased) (owned) and (shall) (shall not) remain with the property. Security system. if any. is (leased) (owned) and (shall) (shall nor) ·emain with the property. Any other persunal property not stipulated herein shall nor remain with the property.

!.PRICEANDTERMS:ThepurdJasepriceshallbethesumof ~ Lh J.., ~~£.?. ; ~ S /{ ?: Q 00 ). An e· rnest mu1 y deposit of$ Ia 0 9-!- is made herewith. as evidence of good faith binding this contract, and shall be held m tho: Escn~v Account of · ' and shall be applied to the purchase pi-ice upon passing of deed. The deposit ,hall only be remo\·ed from the brokers escrow account sl own above upon closing. written agreement of all parties. court order. or as provided by law. in act.:orclance with KRS :\24.111 ( .:J. ). If either pcmy faib to perform his/her obligations hereunder. the other parry may accept the deposit as liquidated damages. with bnth parties 'igning a release or. subject to Paragraph 19. may pursue an;, available legal or equitable remedy.

3. PAYl\lENT OF PURCHASE PRICE: The purchase price sha aid as follows: e~ money to be credit':d thereon: $ -0- down payment: balance of$ ~ q00 paid by cash or by· (Conventional) FHA! (VA)~(adjusrable) (loan assumption: see attached addendum) loan amorti1ed over Sifyears. with interest not w exceed . 'k per annum. with monthly principal and interJ:_st payments of approximately $ 7...5(. 1.3 plus monthly tax ami insurance (and mllrtgage insurance. · applicable) escrow payments of approximately $ 1<'?)! I~ /,50 ~Jr a total approxi-mate monthly payment of S ~Q I !1- . For an adjustable rate mortgage. adjustments are limited to the following: -----==:::._ _______ _

Buyer agrees to pay origination fee/discount point(s) of Q '/c. Should this transaction be finc\nced by an FHA or VA loan. Seller agrees to pay certain fees to the lender for the processing of the loan which the Buyer. because of FHA and VA guidelines. cannot pay. Balance of down payment on purchase price shall be tendered at closing by cash. cashier's ..:heck or cenitied check made payable to Buyer to be endorsed at closing. Buyer shall pay all normal costs of Buyer and Seller shall pay all normal Cllsts of Seller. common to Kentucky legal practice.

This contract h conungcnt upon Bu)er yual!tymg tor a loan on the abo\e terms and t:ondHlllllS Lli benet Any change in loan terms must not adversely affect the Seller\ proceeds 01 ..:losing dme. Buyer must apply for a loan within /0 c.tlendar days from acceptance of this contract (ac<.:eptance date not included) .

.t. APPRAISAL CONTINGENCY:

A. FOR TRANSACTIONS INVOLVING A LENDER: This contract is contingent upon the lender's tirst appraiser establishing that the value of the property i' equal to or greater than the saks price.

B. FOR CASH TRANSACTIONS, PRIVATE FINANCE TR4.NSACTIONS, AND CONTRACTS FOR DEED: If Buyer chooses to have an appraisal this contract i> contingem upon an appraisal from a Kentucky certified real estate appraiser chosen by Buyer. performed within ____ _ days from 'tcceptance of this contract. establishing that the value of the property is equal to or greater than the sales price.

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EXHIB::':T "A"

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BUYER Initials BA£:. I KLJJE DATE:

TIME: (pjP>1 ;fi/ldoi I . J,'{J Afn

SELLER Initials 11tf?D DATE: '1-}- &lf TIME: if . Q{ :}ftfl1

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Property located at

, PRORATIONS: All tax.:s, dues and as,essments due and payable in year of do~ing shall be prorated between Buyer and Seller on the applicable calendar/ seal year basts w date of deed, unle>s lllherwise agreed upon .

. CLOSING DATE (CHOOSE ONE): 1 Closing l)f thi> transaction shall occur no sooner than c9 0 calendar days nor later than k D calendar days from the date of acceptance of this -lntract. unless oth.:rwise agreed upon in writing between Buyer and Seller. The closing date and time shall be acceptable to both Buyer and Seller. If Buyer and eller cannot mutually agree upon a closing date and time. both Buyer and Seller shall close as soon as Buyer's loan is approved and the lender is ready to close ,o l,mg as that date is within the time frame above-mentioned).

-OR-I Closing of this transaction shall occur un tbc day of ,20 ,unless otherwise agreed upon in writing between :uyer and Seller. The closing shall be ar a time ,1greeable to both Buyer and Seller, which agreement shall not be unreasonably withheld .

. POSSESSION OF PROPERTY: A. DATE OF POSSESSION: Possession of the property shall be given by Seller to Buyer (CHOOSE ONE): by ____ am/pm Eastern Time. _____ calendar days ti'om date of closing (closing day not included); -OR-

t simultane,JUsly with dosing. with all k.cy~ at closing table ami property ready fur occupancy.

B. CONDITION AT POSSESSION: Until possession is delivered, Seller shall maintain the property, exterior and interior, in the same or better condition as of the date nf acceptance of this comract, normal wear and tear excepted. Seller shall leave the property free of trash, debris, and personal property not listed in Par<tgrctph I above, and shall leave the premises "broom clean". Buyer sl1all have the right to perform a "walk-through" inspection prior to closing and again prim to delivery of possession w verify condition. This paragraph shall survive the closing. C. VVARRANTlES TRANSFER: Seller agrees to transfer to Buyer. at closing, Seller's interest in any manufacturers warranties, service contracts, and other guarantees or warranties which may be transferable w Buyer. Should there be a fee for this transfer, it shall be paid by Buyer.

I. COJ.VIMISSION: At closing of this transaction. Seller shall pay the above Listing Company a commission as per Listing Contruct. The commission is earned IJXlll acceptance of tl1is utTer, but sLtbject to any contingencies specified herein. If the closing is not completed because of failure of Buyer and/or Seller to >erform his/her respective nbligariuns hereunder. the defaulting pm-ty shall pay the commission.

'ursuant lll .201 KAR. 11: 121. Sectinn I ( l ), Buyer and Seller acknowledge that one Llr more of the REALTORS acting in this transaction may receive a referral fee or referring nne or more of the partie» to a service provider. such as a home inspection company. a home warranty company, a mortgage provider. etc.

I. TITLE TO BE CONVEYED: An unencumbered, marketable title to the real property described herein shall he conveyed by deed of GENERAL WAR­~ANTY with the LNtal covenanb such a' any title cumpany will insure, except easements of record, restrictive covenants of record as to use •md improvement )f the property. and except applicable regulations imposed by the Planning Commission. Should title prme defective and such defect cannot he remedied before ·],lsing date, S~llc:r shall pay all title examination costs. and any reasnnable out-of- pocket expenses incurred by Buyer in the process of pursuing the purchase )f this propert). incluJing but not limited to cost of appraisal, credit report. mortgage application. survey, and inspections of any type. Buyer is advised that a itle examination alone cannot determine the existence of many possible claims or encumbrances against title. Consequently, to help protect Buyer's >wnership interest fmm c·ertain claims. encumbrances or objections to title, Buyer shall purchase at closing an Owners Title Insurance Policy as a Buyer's tormal expemc.

Juyer acknowledges that Owner's Title Insurance is strongly recommended and that, without said insurance, Buyer may have no protection against future oss from possible lic•ns, demands for money. clainb for possession of the property. unreleased encumbrances or future objections to title or potential losses. If 3uyer declines the prutection of Owner's Title Insurance, initial here: I DATE: I TIME: / ___ _

Ill. SURVEY: BUYER IS ADVISED TO ORDER AND PURCHASE A STAKED SURVEY TO INFORM BUYER OF THE LOT SIZE AND BOUND­ARIES, AND OF THE POTENTIAL FOR ENCROACHMENTS OF BUILDINGS AND OTHER IMPROVEMENTS OYER PROPERTY LINES, BlJILDING SETBACK LINES, EASEMENTS, ETC.

3uyer acknclwledge' that Buyer has not relied upun representations made by the real eslilte agems regarding the aforementioned matters which would be ·evealed by a survey.

:::HOOSE ONE:

0 Buyer shall order and purchase a STAKED SURVEY as a Buyer's expense: OR

CJ Buyer shallurdcr and purcha~e a MORTGAGE INSPECTION PLAT (without corners marked) as a Buyer's expense; OR

~ Buyer waives the right to purchase a staked survey and a mortgage inspection plmand accepts the propert~ "as is" as it pertains to survey issues, including bur not lumted to lot ,;tze and encroachments ot tmprovements over easements, butldmg lumts and property lmes.

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BUYER Initials BA £ 1 ku{f. SELLER Initials M?)) DATE:

TIME:

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DATE: J- J ·-OJ./ I 7-/- O<.f

TIME: II: a5" M I It d(o tl~

'OITe<.> the <.:u Property located at _-;L<L---~~/'-1.?~.,7-"'>G""""",.d·~ g.,?_

l. INSPECTIONS OF PROPERTY: (Time is of the essence with regard to all of Paragraph 11.)

.UYER IS ON NOTICE THAT AN INSPECTION IS RECOMMENDED ON EVERY PURCHASE AND THAT INSPECTIONS AND APPRAISALS ~EQUIRED BY FHA, VA, OR BUYER'S LENDER DO NOT NECESSARILY ELIMINATE THE NEED FOR OTHER INSPECTIONS.

:xcept as expressly provided herein, the parties have not relied upon any statement or representation by any real estate broker or agent as to the ,ature or condition of the property, or any part thereof, nor do such Brokers or agents, expressly or impliedly, warrant the property, its construction, ondition or materials or any of the fixtures, appliances or amenities.

'he parties hereto acknowledge that the REALTORS do not recommend specific inspectors or specific inspection companies. All inspections are deemed to have 1een chosen and ordered by the Buyer. Except for a material misrepresentation made by an agent, the PARTIES RELEASE each such agent and broker from liability ·or any defect or deficiency now existing or later discovered relating to this property, and all systems, appliances, and equipment on it. These provisions shall .urvive the closing.

~UYER AND SELLER ACKNOWLEDGE THAT A HOME WARRANTY POLICY MAY BE AVAILABLE TO BUYER FOR AN ADDITIONAL :::::OST. BUYER IS AWARE THAT A HOME WARRANTY IS NOT A SUBSTITUTE FOR A HOME INSPECTION.

\. VERIFICATION OF SQUARE FOOTAGE: The information provided by the Seller or agents regarding the square footage of the improvements is .tpproximate and is provided to the best of the Seller"s knowledge. Buyer acknowledges that the purchase price set forth herein is not based on either the approximated or the actual square fomage of the improvemems. Within _.IfS__ calendar days after acceptance of this Contract (acceptance date not included), Buyer shall ve.rify the information provided by Seller as to the square footage of improvements located on the property. If the information is im:onect by more than ten percent (I O'k ), Buyer shall have the right to cancel this Contract by written notice to Seller given prior to the expiration of such time period. If Buyer fails to verify such information Juring such time period, or if such information is determined to be incorrect by more than ten percent ( l 0%) and Buyer fails to cancel this contract, Buyer shall be deemed to have waived any rights or claims for damages as a result of any incon·ect information regarding square footage of the improvements located on rhe property, and shall proceed with the purchase of the property.

B. INSPECTIONS OTHER THAN FOR \VOOD DESTROYING INSECTS (CHOOSE ONE): 1. D Buyer has re..:eived a Seller Disclosure of Property Condition form with all questions ..:ompleted. Unless it is dis..:overed that Seller failed to disclose a

material dde..:t which was known nr reasonably should have been known, Buyer accepts this property in its "as is" condition. Buyer understands the risks associated with this decision and ctgrces ro indemnify and hold harmless the real estate agents and Brokers from any damages sustained as a result of accepting the property in its "as is" condition. Notwithstanding the foregoing. Buyer has tl1e right to perform any and all desired inspections, bur Buyer may not request the Seller to make any repairs, corrections, or replacemems, and Buyer agre<;:s to purchase this property regardless of the results of the im,pections; OR

2. 0 Within calendar days after acceptance of this contract (acceptance date not included), Buyer may inspect the property for any purpose. As a result of the inspections. and within the same time period, Buyer may EITHER accept this property "as is" without requesting any repairs, corrections or replacemenh OR declare the contract null and void. unless the parties otherwise agree in writing. If Buyer dechu·es this contract null and void. then Buyer and Seller shall sign a mutual release within three ( 3) calendar days authoriLing a refund of all earnest money to Buyer; OR

3. -:.3 Buyer. and Buyer's representatives (chosen by Buyer!, at all reasonable times shall have the right to enter upon the property for the purpose of making a diligent, prudent, and cnmpetem inspection. examination and testing the property. Buyer agrees to pay for all of said inspections. lt is specifically understood that the entire property is subject to this inspection.

All inspections shall be made within__i______;{,__ calendar days after acceptance of this contract (acceptance date not included). A copy of the applicable pages nf the written inspection report. if any. shall be delivered to Seller or Seller's agent within the same time period. Also within that same time period, Buyer shall notify Seller or Seller's agent in writing of any repairs. corrections. or replacements needed to bring the inspected item(s) to its/their standard operating condition. cnnsidering the quality, age, and value of :mch items. Failure to notify Seller or Seller's agent within the time frame above-mentioned shall constitute an acceptance by the Buyer of the condition of the inspected item.

Any request ti.lr repair. L·orrcction lH' replacement shall be reasonable and shall not constitute an upgrade nor, unless the property is new construction, shall it constitute a request to bring the property to current code. Buyer acknowledges that Buyer understands that the property, if not new construction, has some inherent characteristics that are present in previously-owned properties of this age, and Buyer will not unreasonably withhold :tcceptance of the property following the inspections. Buyer waives any objections to matters disclosed by an inspection which are of a purely cosmetic nature.

Seller shall respond in writing w Buyer's requests for repairs. corrections, or replacements within /Q calendar days from receipt of Buyer's notification tu Seller or Seller's agent. If Seller does not respond within said time period, it is assumed that Seller shall make and pay for repairs, conections, ur replacements as per Buyer's request.

ln Seller's n:,ponse to Buyer. Seller may agree to Buyer's request or. if not. shall negotiate in good faith with Buyer as to which items shall be repaired, corrected, or replaced, and which parry shall be responsible for payment of same. If Buyer and Seller cannot agree on which items will be repaired, L'Orrected. or replaced. or on payment of same, this contract is voidable at the option of Buyer, in which event Buyer and Seller shall sign a mutual release wnhmlhree (3) calendar days authoriLing a refund of all earnest money to the Buyer. Additional responses between the parties shall carry a specific exptratwn date and nme, and shall be in writing.

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BUYER Initia~E I J<LJ1£ SELLER Initials JVf\5}> du/J DATE: l.p ~'J I f),{)Qf./ DATE: "]·I -tJ q I 2-/-0 i TIME: I D . iA5 I 8/1 TIME: if :eX) Al1 I II.'& om,

Prop~rty loc:at~d at

15. FAIR HOUSING: This property w~1s offered for sale without regard to race. c:olor. sex. religion. national origin. handicap. familial status. sexual orientation or gender identir:-.

16. RISK OF LOSS: ..\.11 risks of loss with respect to the proper£~ shall r~m:.1in with Seller until the closing and delivery of deed to Buyer. In addition. Buyer has an insurabk interest in the property from the date of ~tcceptance of this contract and Buyer is hereby notified that insurance should be placed on the property immediately to protect that interest.

17. LEASESIFANYtCHOOSEONE): Nl Seller warrants that no \·alid leases are m shall be in effect as of the date of closing on this property: l-OR-D All leases. if any. shall be assigned tll Buyer: all rental collections. if any. shall be prorat~d; and all security deposits. if any. shall be transferred to Buyer at date nfd.:ed.

18. SMOKE DETECTOR ORDINANCE NOTICE: For property located within the City of Louisville. Seller understands that Seller will be required to sign at clnsing an affidavit c:enif:;. ing complian.::e with Louis\'ille Code of Ordinance Section 95.36 (E). This ordinance requires installation of smoke detectors powered hy hard line ..\.C primary power source or self-monitored, non-remo\'al lithium batteries. Seller shall comply with said ordin<mce prior to closing and sign the required :~ffidavit at clo->ing.

~lEDIATION/BINDlNG ARBITRATION: Any dispute or claim (including. without limitation. claims offraud. misrepresentation. warranty and negligence) of Sellers. Buyers. Brokers. Agents or any of them for a sum greater than the limits of small claims court jurisdiction arising out of this contract or the breach thereof or arising nut nf or relating to the physical condition of the property covered by this contract shall first be submitted to mediation in <lccorclance with the guidelines and proceuurcs of a qualitied. reputable Greater Louisville Association of REALTORS. Inc. mediator (names and addresses of which may be obtained from the Greater Lnuisville Association of REALTORS. Inc.). Disputes shall include (among other things) issues relating to representations made by the Buyer, Seller or any Broker or Agent. or other person or entity in connection with this sale and purchase. Any agreement signed bv the parties pursuant to the mediation conference shall be binding.

If mediatilln does not result in an agreeement '>igned by the parties. all such claims or disputes shall be decided by binding arbitration in accordance with the rules for the real estat.: industry, then in etfecr. adopted by the American Arbitration Association unless the parties mutually agree otherwise. Notice of the demand for arbitration shall be filed in writing by registered or certified mail with the other parties to the contract and with a registered arbitrator (a list of which is available at the Greater Louis,·ille Association of REALTORS. Inc. main oftice) or other arbitrators which the parties may agree upon~ shall be made within 180 Jays after the dispute has arisen. An ac·tua! oral hearing shall be held unless the parties mutually agree otherwise. The Kentucky Real Estate Commission still retains JUrisdiction to determine violations of KRS 3~-1.! 60. Any proceeding to determine damages sh:lll be conducted by an arbitrator pursuant to this clause and not in court. By signing below. the agents. on behalf of themselves and their brokers. agree to be bound by this arbitration clause. but are not parties to this contract for any llther purpose. The terms of this Paragraph 19 shall survive the closing.

Listing Agent-.. Signature Date/Time Cooperating Agents Signature Durerrime

20. OTHER PROVISIONS: ________________________________________ _

21. This is a legally binding Contract. Thet·e is no rescission period following the signing of this Contract. The parties to this contract have read its entire contents and acknowledge receipt of a copy. It is agreed that all terms and conditions pertinent hereto are included in this writing, and no verbal agreements or understandings of any kind shall be binding upon the parties. The deletion, alteration or unent'orceability of any provision of this contract shall not affect the enforceability of this contract. Seller and Buyer acknowledge that they have not relied upon the advice or representations of brokers m· agents regarding, among other things, legal and tax consequences of this contract, and Seller and Buyer acknowledge that if such matters have been of concern to them, they have sought and obtained independent advice relative thereto.

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BUYER Initial~f\E I }::U/e SELLER Initials ;11"y)> 1.:il&{) DATE: -----'{p'!f£-LJ</a<.L.Clf-L---_1 d{l) Sf DATE: ] -f.-()£/ I 7-/-0 Y TIME: llJ: dS ;_____Lft.Ll&-'--1--- TIME: J I: d:) N1 I 1/'J(p ,If;?'\

Pro perry located at g' (fjg7 ,2 . ~-e'A / ~ k ~~£k ~LESSACCEPTEDBY tp,'OOPM.EASTERNTIME,ONTHEb'ti-DAYOF ~ .6bCu2'f= , THIS OFFER !ALL BECOME NULL AND VOID (!!WE A~N)JWLEDGE RECEIPT OF A COPY OFTHI OFFER.)

, _ _ ~;z..qro~ (:) ~ &/t.91()~ .~L )RucE A. EL-z..y }O:d--~ ~0\ 1o:i.~ ss# -roo_q,~ -~lo~ nted Name of Buyer ' Date/Tim.; Signature of Buyer Date!Time J , 1

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~SPONSE: ACCEPTANCE

1e above offer is accepted at _____ m, Eastern Time, on the _____ day of ________ _

We acknowledge receipt of a copy of this contract.)

-------------------~~~----- ~----~----------~-=~----SS# ___________ _ inted Name of Seller Date/Time Signature of Seller Date/Time

-------------------------- __________________________ SS# ________ _ intcd Name of Se:.:.:ll~e1~· _______ D"""a,te/Time Signature of Seller Date/Time

ESPONSF('REJEC~ON~UNTEROFFE~ llyer's offer is rejected at J[·po Am, Eastern time on the~~,a.C day of ~Lr , j,_~otj. However, Seller will accept:

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.11 other terms ;.~nd conditions shall remain the same.

COUNTER-

71/oY /t.·db Date/Time

'he following addenJum is/are attached hereto and made a part hereof:---------------------------------;;::::::::::::::::;:--------

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Greater Louisville Association of REAL TORS

SELLER DISCLOSURE OF PROPERTY CONDITION

The informa! in this form is _only for the period the undersigned owned the property, beginning

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d oof (date of purchase) (date of this form)

This form applies to sales and purchases of residential real estate. This form is not required for: 1. Residential purchases of new homes if a warranty is offered; 2. Sales of real estate at auction; or 3. A court supervised foreclosure.

PROPERTY ADDRESS: ~tJ \~ G-\gse,R L~:v-JC. 1 L.ov.;:':>,;. lk:.1 Kf '1o:l9l PURPOSE OF STATEMENT: Completion of this form shall satisfy the requirements of KRS 324.360 which mandates the seller's disclosure of information about the property he is about to sell. This disclosure is based solely on the seller's observation and knowledge of the property's condition and the improvements thereon. This statement shall not be a warranty by the seller or seller's agent and shall not be intended as a substitute for an inspection or warranty the purchaser may wish to obtain. INSTRUCTIONS TO THE SELLER: (1) Complete all numbered items. (2) Report all known conditions affecting the property. (3) Attach additional pages, if necessary, with your signature and the date and time of signing. (4) Complete this form yourself unless the applicable provision regarding licensee completion is utilized. (5) If some items do not apply to your property, write "not applicable." (6) If you do not know the answer to a question, write "unknown." SELLER'S DISCLOSURE: As seller, Ilwe disclose the following information regarding the property. This information is true and accurate to the best of my/our knowledge as of the date signed. Seller authorizes the agent to provide a copy of this statement to a person or entity in connection with actual or anticipated sale of the property or as otherwise provided by law. The following are not the representations of the agent. Please answer all questions. If the answer is yes, please explain. If additional space is needed, use the reverse side or make attach­ments.

1. HOUSE SYSTEMS YES NO UNKNOWN

Any past or current problems affecting: . . . .. . ?; (a) Plum~ing ~:.~./;.•j.J.~ .. ~Red.l\~~~-~t?).J:.l~Hd.) .. :~ .. ~.~l:.~ .. ~;.~.~ .. ~c.o::d.. (b) Electncal system .............................................................................. .

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(c) Appliances ...................................................................................... . v (d) Floors and walls ............................................................................... .. (e) Doors and windows ... R~P.~~~J. .. ~~~.W.~ .......................................... . 7

v (f) Ceiling and attic fans ........................................................................ .. v (g) Security system ............................................................................... .. (h) Sun1p pump ................................................................................... ..

v v (i) Chimneys, fireplaces, inserts ............................................................... .. v (j) Pool, hot tubs, sauna .......................................................................... . (k) Sprinkler system .............................................................................. ..

v z (l) Heating .......................................... age ___ .................................... .. v (m) Cooling/air conditioning ...................... age ___ .................................... .. ·./

Explain: ________________________ _

2. FOUNDATION/STRUCTURE/BASEMENT

(a) Any defects or problems, current or past, to the foundation or slab? ................. . (b) Any defects or problems, current or past, to the structure or exterior veneer? ...... ..

Explain: &oU (ov,;ll>ft-'T;crJ )2.(J>,th ·g_

(c) Has the basement leaked at anytime since you have owned or lived in the property? (d) When was the last time the basement leaked? ___________ _ (e) Have you ever had any repairs done to the basement? ................................. .

Pa,gc I of 3 Sdkr~ Di:-.do~ure Form Rcvi!-.e.J 9/2CXH Kemucky Rc:1! Estate Cummhsion EXHIBIT ., B"

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(t) I( you have had repairs done Jasement relative to leaking, when was the repair performe .... _________________ _ Explain: _________________________ _

(g) If the basement presently leaks, how often does it leak? (e.g., every time it rains, only after an extremely heavy rain, etc.)-----------­

(h) Have you experienced, or are you aware of, any water or drainage problems with ? t!. . r ~ _...,.' regard to the crawl space ... t.U(I}.fl_ ... p.wn.p .. ~.~·-~e....-................... .

ROOF (a) Age of the roof? '3 !.f-R't. (""?) (b) 1. Has the roof leaked at any dme smce you have owned or h ved m the property?

2. When was the last time the roof leak:ed? _ _,3~'1"'1?.""'s.__ ________ _ (c) 1. Have you ever had any repairs done to the roof? .................................... .

2. If you have ever had the roof repaired, when was the repair performed?~@~ (d) 1. Have you ever had the roof replaced? .................................................. .

2. If you have had the roof replaced, when was the replacement performed?~~ (e) If the roof presently leaks, how often does it leak? (e.g., every time it

rains, only after an extremely heavy rain, etc.), ___________ _

LAND/DRAINAGE (a) Any soil stability problems? ............................................................... . (b) Has the property ever had a drainage, flooding, or grading problem? .............. . (c) Is the property in a flood plain zone? ..................................................... . (d) Is there a retention/detention basin, pond, lake, creek, spring, or

water shed on or adjoining this property? ............................................... . Explain: ______________________________________ ___

BOUNDARIES (a) Have you ever had a staked or pinned survey of the property? ........................ . (b) Do you know the boundaries? ........ fi~ ........................................... . (c) Are the boundaries marked in any way? .. fi~.~-! .. P.£!'i.~-~···················· (d) Are there any encroachments or unrecorded easements relating to the property of

which you are aware? ....................................................................... . Explain: __________________________ _

WATER (a) 1. Source of water supply __ __..C,~,·'--'~~..:;Wo.:;::.._::...::\~e,:..:.R....:...... ______________________ _

2. Are you aware of below normal water supply or water pressure? ..................... . (b) Is there a water purification system or softener remaining with the house? ........... · (c) Has your water ever been tested? If yes, give results

Explain:---------------------------

SEWER SYSTEM (a) Property is serviced by: r/' public sewer; __ private sewer; __ septic tank;

__ storm sewer; __ leach field; __ aeration tank; __ filtration bed; __ unknown {b) If not a public or private sewer, Date of last inspection __ , Date last cleaned __ (c) Are you aware of any problems with the sewer system?

Explain: ----------------------------------------------

CONSTRUCTION/REMODELING (a) Have there been any additions, structural modifications, or other alterations made? (b) Were all necessary permits and government approvals obtained? ..................... .

Expl~n: ___________________________ _

HOMEOWNER'S ASSOCIATION (a) 1. Is the property subject to rules or regulations of a homeowner's association? ........ .

2. If yes, what is the yearly assessment? $ --------------

Pugo 2 of 3 Sollers Disclosure Form Rev. 9/200 I Kentucky ReaiEstate Commission

YES NJ- UNKNOWN

(b) Are you aware of any con\ .1 which may result in an increase in taxes or assessments? ......................................................................... .

(c) Are any features of the property shared in common with adjoining landowners, such as walls, fences, driveways, etc.? ........................................ .. Explrun: __________________________________________________ _

10. MISCELLANEOUS (a) Was this house built before 1978? ............................................................ .. (b) Are you aware of any use of ureaformaldehyde, asbestos materials, or

lead based paint in or on this home? .......................................................... . (c) 1. Are you aware of any testing for radon gas? ............................................... .

2. Results, if tested---------------------------------------­(d) Are you aware of any underground storage tanks, old septic tanks,

field lines, or abandoned wells on the property? ............................................ . (e) Are you aware of any present or past wood infestation (i.e. termites,

bores, carpenter ants, fungi, etc.)? ............................................................. . (f) Are you aware of any damage due to wood infestation? .......................... . (g) 1. Have the house or other improvements ever been treated for wood infestation?

2. If yes, when, by whom, and any warranties?-----------------------

(h) Are you aware of any existing or threatened legal action affecting this property? (i) Are there any assessments other than property assessments that apply

to this property (i.e. sewer assessments)? .................................................... .. G) Are you aware of any violations of local, state, or federal laws, codes,

or ordinances relating to this property? ....................................................... . (k) Are you aware of any other conditions which are defective with regard

to this property? .................................................................................. .. (l) Are there any environmental hazards known to seller? .................................... .. (m) Are there any warranties to be passed on?.. .................................................. . (n) Has this house ever been damaged by fire or other disaster (i.e., tornado, hail, etc.)?

If yes, please explain: ---------------------------------­SPACE FOR ADDITIONAL INFORMATION

YES N~UNKNOWN

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******************************************************************************************************** THE LICENSEE NAMED HERE HAS BEEN REQUESTED BY THE OWNER TO COMPLETE

THIS FORM AND HAS DONE SO. I HEREBY AGREE TO HOLD HARMLESS THE NAMED LICENSEE FOR ANY REPRESEN­

TATION THAT APPEAR ON THIS FORM. Seller: Date: ___________________________ _

THE SELLER REFUSES TO COMPLETE THIS FORM AND ACKNOWLEDGES THAT THE AGENT SHALL SO INFORM THE

BUYER.

Seller:------------------------------- Seller:---------------------------------Date: Date: THE SELLER HAS REFUSED TO COMPLETE THIS FORM AND HAS REFUSED TO ACKNOWLEDGE HIS FAILURE TO

COMPLETE THE FORM

Broker/Agent: Date: ----------------------------------THE BUYER ACKNOWLEDGES RECEIPT OF THIS FORM.

Buyer Date Buyer Date

THE SELLER MAY DISCLOSE ADDITIONAL INFORMATION NOT REQUESTED OF THIS FORM AND MAY RESPOND TO

ADDITIONAL INQUIRIES OF THE BUYER.

Page 3 of 3 Sellers Disclosure Form Rev. 9/2001 Kenrucky Rea! Estate Commission