Paperwork

• Investors sign a Purchase Agreement to acquire the specific unit of choice from Fuente Triangle Realty Development Corporation.
• Upon full payment of Unit, Investors will receive a fully-paid Preferred Stock Share certificate representing the acquired unit as specified in the Articles of Incorporation of Boracay Multiple Properties Development, Inc.

Purchase Agreement:

The Condotel Unit purchase agreement for is irrevocable upon signing. A reservation deposit of One Hundred Thousand Pesos (Php100,000.00), payable to Fuente Triangle Realty Development Corporation, is required upon signing. The balance is subject to the agreed terms of payment to be completed within thirty (30) days. Cash payments are also given thirty (30) days to complete.

Failure to meet final payment at the time agreed upon in the Purchase Agreement results to the forfeiture of the deposit made unless acceptable arrangements are agreed upon.

( Q&A)Questions and Answers Regarding Condo Purchases
Investors sign a Purchase Agreement to acquire a Preferred Stock Share from Fuente Triangle Realty Development Corporation representing a specific Condotel unit.
After payment in full for the unit, investors will receive a Preferred Stock Share certificate.
Preferred Stock Share certificate can only be resold after the unit is fully paid. In other words, if you should wish to sell your Condotel unit, you must have paid the entire contract price before you can do so.
Purchase Agreement:
A reservation deposit of One Hundred Thousand Pesos (PHP100,000.) payable to Fuente Triangle Realty Development Corporation is required upon signing. This reservation deposit is a part of the total contract price and is non-refundable. The down payment schedule agreed upon starts 30 days after the reservation deposit is made. Cash buyers are also given thirty (30) days to provide funding in full. The Condotel unit purchase agreement for Crown Regency Resort & Convention Center is irrevocable upon signing.

All contracts to sell will be denominated in Philippine Peso. All postdated and blank dated checks, foreign drafts, wire transfers or other means of payment acceptable to developer will need to be converted into PHPeso before presentment. All instruments of payment shall be made payable to Fuente Triangle Development Corporation.

Failure to meet any payment at the time agreed upon in the Purchase Agreement results in the forfeiture of the reservation deposit and any payments made unless acceptable arrangements are agreed upon in advance.

(Refer to Section 8 of the Contract to Sell.)

Preferred Stock Share Sample

Frequently Asked Questions
Q1: How does the Condotel operation differ from Timeshares?
A1: In a timeshare, you only exercise a right to use the property and facilities for a certain period of time. When you own a unit in Crown Regency Resort & Convention Center, you own a Preferred Stock Share in a company whose value consists of the Condotel units in this project. At the same time, since you own a Club Ultima membership, you have a vacation exchange privilege with any Crown Regency property in the Philippines along with an Interval International membership if you choose to enroll in their program.

Q2: Is the Preferred Stock Certificate pertaining to each unit to be replaced by a title to the Unit? If so, when?
A2: The Preferred Stock Certificate, which represents ownership and possession of the condominium unit, shall be redeemed only once when the unit is fully paid for. The development company has obtained a tax declaration on this property from the government and has filed for a transfer certificate of title. Individual title to each condominium unit will be issued and distributed to each shareholder upon full payment of their unit. The Developer will transfer ownership in the form of a separate tax declaration for each Unit or a condominium certificate of title for each separate unit. The developer cannot predict when a transfer certificate of title will be obtained from the governmental authorities. These issues are dealt with in the Articles of Incorporation of the company. Approximately 90% of Boracay Island is held in the form of tax declarations which are a common form of ownership used in the Philippines.

Q3: How does the Condotel operate?
A3: The Condotel will be managed and operated by Crown Regency Resort & Leisure Management, Inc. as a resort hotel. Subject to advance booking, unit owners have priority use of their Condotel units or an equivalent type for 45 FREE night stays every year. If the usage will exceed 45 nights, they will have to pay the Club Ultima members rate (30% discount from regular rates) for their accommodations.

Q4. Are there any additional costs to be shouldered by the Unit owners upon enrollment in the Condotel operation?
A4. Yes. Prior to opening, an initial one time start-up fee of PHP 30,000. per unit will be required to cover initial operating expenses. After this fee, all ongoing expenses will be paid from the Operator’s 50% share.

Q5: What fees do we pay Crown Regency Resort & Leisure Management Service, Inc. as hotel Operator?
A5: The Operator will receive 20% of net sales in exchange for the following costs:
All salaries of sales & marketing and reservation staff except for promotional and advertising collaterals.
All expenses related to maintaining a sales & marketing office.
All salaries of the General Managers & Resident Managers.
The Hotel Operator also guarantees to exchange the unit owners unused 45 FREE night stays in Boracay with any of the other Crown Regency Hotels and Resorts nationwide ,with no expiration date.
As an added incentive to the Hotel Operator, if total expenses do not exceed 30% of net sales, which shall result in a 50% gross operating profit before income tax, an additional 3% of net income will be given as a bonus to the Hotel Operator.

Q6. Is the unit owner required to obtain insurance in order to protect their investment?
A6.No. Insurance is provided by the Hotel Operator and is covered under the operating costs in the estimated 50% Hotel Operator’s share.

Q7. Can a unit owner live in their property full time?
A7. This project is for investors only. You are required to enroll in the Condotel operation for a minimum of ten (10) years. An option available to the Operator which is likely to be invoked would extend the term of expiration, subject to mutual agreement as per majority vote of the unit owners association.

Q8. How often will dividends be declared?
A8. Monthly or quarterly, as mutually agreed upon with the unit owners.

Q9: What are the considerations in determining revenues & dividends for the unit owners?
A9: In order to maximize returns and ensure cost efficiencies for the unit owners, only room revenues and the room divisions’ related expenses are considered in the determination of income and related expenses against it such as housekeeping, laundry, front office, security, repairs and maintenance, utility, taxes and insurance. Food and beverage income and its related expenses such as F & B personnel, kitchen equipment, supplies, utilities, taxes and insurance are treated separately from and independent of the room divisions’ expenses which are attributable to the Condotel units.

This arrangement assures the unit owners a cost efficient operation as room related income and expenses are easily controlled and managed.

Q10: How will dividends be paid to the unit owner?
A10: Dividends will be in the form of a check to be mailed or can be paid directly into the bank account of unit owners and will be denominated in PHPeso. For a foreign currency to be remitted, prior arrangement must be made with the Hotel Operator on a case to case basis.

Q11: Are there any other condominium association dues?
A11: None. Almost all expenses are charged to the hotel Operator as part of the operating costs covered in the estimated 50% share of the Hotel Operator.

*not valid under guaranteed fixed payback program

Q12: Will there be a unit owners association?
A12: Yes. All unit owners are automatically members of the unit owners association and shall elect among themselves a Board of Trustees to formulate policies and implement the rules and regulations of the association. The Board will be composed of nine (9) members to be elected from among the shareholders whose qualifications and voting rights are defined in the by-laws of the association to be adopted by the members.

Q13. What is the purpose of the unit owners association?
A13. The unit owners association will be organized to oversee the property management of the Condotel units. The association needs to elect board officers to make sure that the unit owners’ interests are protected and their units are well managed.

Q14: Will the unit owner still earn if his unit was not rented?
A14: Yes. Unit owners will still receive quarterly dividend income based on their pro-rata share regardless of whether their particular Unit was rented or not. The Condotel Operator will pool together the entire income from rental operations and distribute this to unit owners as dividends according to the pro-rata share of the different Unit classifications, less expenses and management fees of course.

Q15: Who will shoulder the repairs and maintenance of the unit?
A15: Minor and major repairs are shouldered by the Hotel Operator and chargeable to and part of the operating costs covered in the estimated 50% Hotel Operators’ share.

Q16. Can a unit owner use his *45 FREE night stays in another Crown Regency Resort in Boracay?
A16. Yes, they can. However, this must only be on a one to one room night basis. There is no refund or credit for downsizing to a smaller or less expensive room.

Q17: Can a unit owner upgrade his FREE night stays to a different unit category?
A17: Yes, unit owners FREE night stays can be upgraded but they have to pay the price difference in room rates.

Q18. When does the unit owner get his *45 FREE night stays benefit?
A18. The *45 FREE night stays commence at the start of every fiscal year. These privileges will be distributed to the unit owners in the form of coupons. Owners will be entitled to priority booking even during peak seasons provided they book well in advance.

Q19: Can a unit owner use his *45 FREE night stays for more than one unit at the same duration?
A19. Yes, he can, provided that it would be the same unit type. For example, if an owner stays in the resort for a week and he rents another unit for his friend, he will consume a total of 14 days for that week chargeable to his 45 FREE night stays.

Q20: Can a unit owner who has made an initial booking to use his *45 FREE night stays but eventually cancels it be allowed to make new booking dates to use his room unit?
A20: Yes, provided the notice of cancellation is made two (2) weeks in advance. However, the new booking dates are subject to availability of room units because all the pooled room units are blocked and rented on a day to day basis by guests of the hotel condominium facility; therefore, advance booking is necessary.

*not valid under guaranteed fixed payback program

Daisy Guo

Fuente Triangle Realty Development Corp.

International Marketing Assistant

E-mail: ftrdcmarketing@gmail.com or info@cebucondoreview.co.cc

Cell: (+63917) 462-1174

Skype & Yahoo! Messenger: daisy_guo_onlinemarketing

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