Rev. 3/30/2002

Kings Grant Homeowners Association

Disclosure Packet

1.    The name of the association and, if incorporated, the state in which the association is incorporated and the name and address of its registered agent in Virginia; Name: Kings Grant Homeowners Association, Inc.; Incorporated: Virginia; Registered Agent: LAW OFFICE-MICHAEL E LEVY, 385 GARRISONVILLE RD # 115, STAFFORD, VA

2.    A statement of any expenditure of funds approved by the association or the board of directors which shall require an assessment in addition to the regular assessment during the current year or the immediately succeeding fiscal year; As of the instant date, the Association (including the board of directors) has not approved any assessment in addition to the regular assessment during the current year or the immediately succeeding fiscal year.

3.    A statement, including the amount of all assessments and any other mandatory fees or charges currently imposed by the association and associated with the purchase, disposition and maintenance of the lot and to the right of use of common areas, and the status of the account; The FY2OO1/02 fiscal year regular assessment is $550.00 per year. There are no additional mandatory fees or charges currently imposed by the association. See attached Balance Sheet.

4.    A statement whether there is any other entity or facility to which the lot owner may be liable for fees or other charges; Lot owners may be liable for charges associated with a violation of the Rules of The Association or with the rental of association property to include the community barn, the tenant house, or stabling in the community stable.

5.    A statement of the status and amount of any reserve or replacement fund and any portion of the fund allocated by the board of directors for a specified project; The association does not currently have a positive balance reserve. The FY2OOI/02 budget establishes the following reserve or contingency funds: Roads $1,000.00; Easements/Common Property $6,000.00; Operations $1,000.00; The current budget allocates an estimated amount of $6,000 for demolition of the tenant house.

6.    A copy of the association's current budget or a summary thereof prepared by the association, and a copy of its statement of income and expenses or statement of its financial condition for the last fiscal year for which such statement is available.

7.    A statement of the nature and status of any pending suit or unpaid judgment to which the association is a party which either could or would have a material impact on the association or its members or which relates to the lot being purchased; There are currently no pending suit or unpaid judgment to which the association is a party which either could or would have a material impact on the association or its members or which relates to the lot being purchased;

8.    A statement setting forth what insurance coverage is provided for all lot owners by the association, including any fidelity bond maintained by the association, and what additional insurance would normally be secured by each individual lot owner; The association does not provide insurance coverage for lot owners.

9.    A statement that any improvement or alteration made to the lot, or uses made of the lot or common area assigned thereto by the prior lot owner, are not in violation of any of the instruments referred to in subdivision 12 of this subsection; Improvements or alterations made to the lot, or uses made of the lot or common area assigned thereto by the prior lot owner, are not in violation of any of the instruments referred to in subdivision 12 of this subsection;

10.A statement setting forth any restriction, limitation, or prohibition on the right of a lot owner to place a sign on the owner's lot advertising the lot for sale; The' association does not place any restriction on the right of any lot owner to place a sign on the lot advertising the lot for sale.

11.A statement setting forth any restriction, limitation, or prohibition on the right of a lot owner to display any flag on the owner's lot including, but not limited to reasonable restrictions as to the size, place and manner of placement or display of such flag and the installation of any flagpole or similar structure necessary to display such flag; The association places no restriction, limitation, or prohibition on the right of a lot owner to display any flag on the owners lot including, but not limited to reasonable restrictions as to the size, place and manner of placement or display of such flag and the installation of any flagpole or similar structure necessary to display such flag;

12.A copy of the current declaration, the association's articles of incorporation and bylaws, and any rules and regulations or architectural guidelines adopted by the association.

13.A copy of the notice given to the lot owner by the association of any current or pending rule or architectural violation; Notice of pending action on rules is provided to the association via the meeting agenda packet which is placed on the Internet at the association's web page at http://www.geocities.com/kingsgrantonline and provided at the board of directors meeting. Also, the rules committee maintains a public discussion and notice board at http://www.yahoogroups.com/group/khgoarules. All rules are published on via Internet and by policy will be published once annually and mailed by US mail or provided at the annual membership meeting to each member.

14.Certification, if applicable, that the association has filed with the Real Estate Board the annual report required by § 55-516.1; which certification shall indicate the filing number assigned by the Real Estate Board and the expiration date of such filing. I hereby certify that the association has filed with the Real Estate Board the annual report required by §55-516 1, The filing number assigned by the Real Estate Board is: 0250002475 and the expiration date of such filing is 11/29/2002.