Summary of New Clarksburg Development District Disclosure - June, 2007

The GCAAR Board of Directors has recently approved for immediate release GCAAR Form Number 1358, entitled; Clarksburg Notice of Special Taxing District, Clarksburg Town Center, Clarksburg Skylark and Clarksburg Village. This form has been developed to serve as a Notice to potential Purchasers of properties located within the three noted Clarksburg developments that their ownership may be subject to the imposition of a Special Tax District levy or Special Assessment. Sellers are required to make Notices of this nature in accordance with Section 14-17(a) of the Montgomery County Code.

At the time of the initial sale of a new home located within these developments the Developer's Contract of Sale will include language substantially similar to the language set forth in Form 1358. This language advises the Purchaser that the home they are buying is currently, or will be, located within the boundaries of a Special Taxing District. Once the tax or assessment has been levied it will be added to the annual tax bill which will be payable by the then current owner on an annual basis until paid in full. The expected range for these annual assessments or taxes is $600.00 to $1,500.00 per year depending on the property and its assessed value. Prior to the issuance of this form there was not a way for Sellers to similarly advise their Buyers of this potential expense.

The Special Taxing Districts in question have been or are proposed to be established for the purpose of paying for the interest on and the principal of bonds sold by the County for the purpose of paying for certain infrastructure expenses. These infrastructure items, roads, sewers, etc., were originally built and paid for by the Developers in agreement with the County. However, a dispute has arisen between the Developers and the County as to how these items should be paid for and by whom.

Due to the current unresolved status of these Special Tax Districts and the unresolved dispute between the developers and Montgomery County this Notice is general and somewhat vague by design. GCAAR will continue to monitor this issue and will make subsequent revisions to this Notice Form as may be warranted. In the interim, it is advisable for all Sellers and Agents dealing with properties potentially subject to these assessments to make the disclosure and Notice of this issue to all potential Purchasers.