FREQUENTLY ASKED QUESTIONS ABOUT
PURCHASING REAL ESTATE IN
CHRISTOPHE HARBOUR

1. What type of real estate will be available for sale at Christophe Harbour? What are the sizes of the homesites? (View)

Christophe Harbour will initially offer homesites ranging from approximately one-third of an acre or less to more than one acre. Prototypical homes conforming to the Design Guidelines will be designed and costed so that buyers will be able to estimate their own building costs based on similar home types. In some areas, the homesite and home/villa will be conveyed collectively for one, all-inclusive price.

2. What are the year round weather conditions in St. Kitts? (View)

St. Kitts maintains a tropical climate with an average air temperature of 84 degrees, with water at the surrounding beaches just a few degrees cooler. Sea breezes keep the island relatively cool.

3. What amenities will be available to owners of homesites within Christophe Harbour? (View)

The plans for Christophe Harbour currently include a marina, an 18-hole golf course designed by Tom Fazio, an elegant golf clubhouse and practice range facilities, at least one residents-only beach club, a waterside village with superb restaurants, shopping and dining, a yacht club, tennis facilities, and fitness facilities.

4. Are boat slips available in Christophe Harbour for sale or rental? What services will be available to slip owners? (View)

Current plans for the Christophe Harbour marina call for approximately 300 boat slips, including 50 to 60 slips designed to accommodate vessels from 100' to 300' plus mega-yachts. Slips will be available for sale or rental, subject to availability.

All boat slips will have access to state-of-the-art communications systems and utility hook-ups. Concierge and hospitality services will be available for all yacht owners, their guests and captains. By special arrangement with the Government of St. Kitts and Nevis, yacht owners will be exempt from import duties, consumption taxes, and customs duties with respect to vessels docking at the marina. The government has agreed to maintain these exemptions for at least 20 years. If you are interested in purchasing a marina slip or would like to receive additional information on the marina, please contact Hank Halstead at (401) 849-0120; email: hank@nandj.com.

5. How do I become part of the Founders Program at Christophe Harbour? (View)

The Christophe Harbour sales and marketing office is currently accepting Reservation Agreements for potential participation in the Founder's Program. Benefits for Members of the Founder's Program will be as follows:

• Priority selection on homesites within Phase One;
• Twenty percent (20%) discount off the original purchase price of your homesite;
• Golf and social club initiation fees and dues are waived as long as you own a property within Christophe Harbour (non-transferable); and
• A one-time ability to trade-up your Phase One homesite and receive credit for its original purchase price toward your selected homesite of equal or greater price in a future Phase. In addition, if your Phase One homesite sells for more than its original purchase price, you will receive the net proceeds from its sale in excess of the credit you received toward your new homesite.

We will confirm that you are in the Founders Program with potential to be among the 50 Founding Members upon receipt of your completed Reservation Agreement, Escrow Agreement, $50,000 refundable Reservation Deposit, and other documentation required by the escrow agent, the forms and details of which are available from the Christophe Harbour sales and marketing office. Reservation priorities will be assigned on an equitable basis and you will be promptly notified of your reservation priority in Spring 2008. Following confirmation of receipt of your Reservation, you will receive further information on the selection and purchase of a homesite in Christophe Harbour as it becomes available, including a site plan for Christophe Harbour, homesite pricing, an estimated infrastructure construction timeline, conceptuals and pricing of prototypical homes, and a Property Report approved by HUD. Upon receipt of this information, you will have fourteen (14) days to execute and return a Purchase Agreement for your selected homesite(s) and forty-five (45) days to close the purchase of such homesite. (Note that these mechanics may vary based on the laws of the state in which you reside.)

6. What is the closing process for my purchase of a homesite in Christophe Harbour? (View)

The process is straight forward and simple. Christophe Harbour will assign you a closing concierge who will walk you through every step of the process and can provide you detailed information on all aspects of your purchase.

7. What is the legal process for a non-resident to purchase property in St. Kitts? (View)

Generally, a non-resident of St. Kitts who wishes to acquire real estate in St. Kitts will need an authorization known as an alien land holding license under the Aliens Land Holding Regulation Act. However, the St. Kitts Government has agreed that purchasers of property in Christophe Harbour are exempt from this requirement.

Purchasers may also elect to take title to the property through a company or other form of ownership (if multiple lots are being purchased for development, the company must either be incorporated in St. Kitts or registered as an external company doing business in St. Kitts). Please consult with your local attorney for more information. We will be pleased to provide a list of local counsel.

8. How will the property be deeded to me or my company? (View)

Following the review and approval of title by a St. Kitts attorney, title to your homesite or home will be conveyed to you (or your purchasing entity) by registered title (similar to fee simple title in the US) pursuant to the St. Kitts Title by Registration Act. Title may be held in joint tenancy with survivorship or in tenancy in common in equal or unequal shares.

9. What closing costs should I expect to pay? (View)

As a buyer, your closing costs will include standard items such as: title examination fees, survey preparation fees, your attorney's fees, stamp taxes, title insurance premiums, and your financing costs, if any. Stamp taxes due upon recording of a Certificate of Title for properties located on the Southeast Peninsula of St. Kitts are generally 18.5% of the purchase price plus 2.0% of the amount of any mortgage placed on the property.

For properties in Christophe Harbour, the St. Kitts-Nevis Government has agreed, however, that stamp taxes shall be paid at substantial savings and paid 50/50 by the developer and the buyer in accordance with the following schedule with no additional stamp taxes due on mortgages with financial institutions designated by the developer:

Purchase Price (US$)	Seller	Buyer
Under $2,000,000	6%	6%
$2-5,000,000	2%	2%
Over $5,000,000	1%	1%

The foregoing percentages shall be applied on an incremental basis. For example, on the sale of a homesite for $3,000,000, the total stamp tax would be $280,000 (12% x $2,000,000 + 4% x $1,000,000), with seller and buyer responsible for the payment of $140,000 each. (Founders who exchange a Phase One homesite for a future Phase homesite will be required to pay stamp taxes on the amount by which the purchase price of the future Phase homesite exceeds the original purchase price of the Phase One homesite being exchanged.)

10. Will I need a local attorney for closing? (View)

Yes. The developer will pay for your attorney if you use the attorney to be retained by Stewart Title Eastern Caribbean, Ltd., the escrow agent and title company. You are free, however, to use any attorney that you select at your own expense. We will be pleased to provide a list of local counsel.

11. Is title insurance available? (View)

Yes, title insurance is available. There are several title insurance companies available to handle your title insurance needs. Stewart Title Eastern Caribbean, Ltd. is one such company and may be contacted at (264) 497-0800 (US Number: (908) 320-0338), Attn: Philip Kisob, email: pkisob@stewartcarib.com.

12. What utilities will be available at Christophe Harbour? (View)

Homeowners in Christophe Harbour will have access to all customary utilities including electricity, water, sewer, gas, telephone, satellite television, and internet service.

13. Is homeowners' insurance available? (View)

Yes. Homeowners' insurance is available and will be required for all improved properties in Christophe Harbour. A list of insurers working with potential purchasers in Christophe Harbour will be available from the Christophe Harbour sales and marketing office. Annual homeowners insurance premiums are estimated to be in the range of 1.25% – 2% of the value of the house depending on proximity to the ocean and the method and materials used in construction.

14. What are the anticipated Homeowners' Association dues and assessments for each home? (View)

Homeowners' Association dues will vary by lot type and size and are subject to change, but are anticipated to be approximately US$2,550 per year for unimproved homesites in Sandy Bank Bay and US$9,900 per year for improved homesites in Sandy Bank Bay. Such estimates are based on the additional services to be provided to homesites in the Sandy Bank Bay portion of Christophe Harbour which include landscape maintenance on your improved homesite. Annual assessments for unimproved and improved homesites in other portions of Christophe Harbour are anticipated to be US$1,950 and US$3,900, respectively. Purchasers of homesites will also be assessed at closing a one-time reserve fee for Homeowners' Association use of 1.0% of their homesite purchase price and a one-time contribution to the Christophe Harbour Foundation of 0.5% of their homesite purchase price. The Christophe Harbour Foundation is a non-profit organization and will operate to protect and enhance the cultural and recreational opportunities, ecology, educational opportunities, historical preservation, and economics of the St. Kitty community.

15. Will I be responsible for any brokerage commissions at closing? (View)

No. Unless otherwise negotiated, the seller will pay all commissions of the listing agent and any buyer's agent specified in the Purchase Agreement.

16. Is financing available? (View)

Yes. Christophe Harbour is working closely with lenders to expedite the financing process. Financing details will be available in the Spring of 2008.

17. What property taxes will need to be paid after the closing? (View)

Property owners in Christophe Harbour pay annual Property Tax equal to 0.2% of the assessed value of the property. This is similar to "real property taxes" in the United States, but at a lower rate than generally found in the U.S.

18. How will I select a builder to construct my home? (View)

Christophe Harbour will provide a list of preferred builders along with the design guidelines and help guide you through the building process. In some cases, villas and homes will be built by a contractor engaged by the developer and sold as a home-lot package. In others, you will be able to select any builder that you choose. If you select from list of preferred builders, these builders are familiar with the architectural guidelines and requirements for constructing homes in Christophe Harbour and will be able to explain the design and construction process to you.

19. Will the materials to construct my home be subject to import duties? (View)

The St. Kitts-Nevis Government has agreed to waive all import duties on construction materials, furniture, and furnishings for homes in Christophe Harbour. These materials will, however, be subject to a 6% customs service charge and other charges (not exceeding 8% in total).

20. Should I expect any restrictions on the construction of my home or use of my property? (View)

Yes. Properties in Christophe Harbour will be subject to restrictive covenants providing for carefully planned architectural guidelines, minimum construction standards, sharing of maintenance costs, easements, and other planned provisions about Christophe Harbour land usage. Copies of the applicable covenants, architectural guidelines, and other matters of record will be available from the Christophe Harbour sales and marketing office and will be forwarded with your Purchase Agreement.

21. Will there be private clubs and amenities for owners at Christophe Harbour? (View)

Yes. There will be private clubs and amenities for owners, which are currently being designed.

22. What is the current status of construction at Christophe Harbour? (View)

Christophe Harbour has commenced intensive planning and engineering on the resort infrastructure, Phase I sites, the Tom Fazio golf course, and various other aspects of the development. Construction of the golf facilities, Sandy Bank Bay Beach Club, and infrastructure is anticipated to begin in 2008 and the golf facilities and Sandy Bank Bay Beach Club are expected to open in 2010.

23. Who is providing the project financing? (View)

Christophe Harbour (exclusive of the hotel sites) is funded by developer equity and financing from Bank of America. The hotel development entities have raised their own equity capital as well.

24. Who is the development team behind Christophe Harbour? (View)

The developers of Christophe Harbor are a dynamic collaboration that includes Kiawah Development Partners, Auberge Resorts, Mark Harmon, Mandarin Oriental Hotel Group, Fazio Golf Course Designers, and J.B. Turbidy, along with a host of leading environmental, engineering, and architectural firms.

25. What form of government exists in St. Kitts? (View)

The Federation of St. Kitts and Nevis is a sovereign democratic federal state with membership in the British Commonwealth. Queen Elizabeth II is the symbolic head of State and is represented on the islands by a Governor-General. The Prime Minister is the leader of the majority party of the House of Representatives, and, along with the Cabinet, conducts affairs of state. St. Kitts and Nevis has a unicameral Parliament, consisting of eleven popularly elected members and three Senators appointed by the Governor-General (mainly on the advice of the Prime Minister and the Leader of the Opposition). The Prime Minister and the Cabinet are responsible to the Parliament.

26. What legal system does St. Kitts function under? (View)

The legal system in St. Kitts is based upon English Common Law, which may be superseded by local statute. The judiciary is composed of a High Court of Justice and a Court of Appeal, with final appeal to the Privy Council in London.

The St. Kitts legal system also offers the following benefits for buyers: (a) St Kitts does not have an inheritance tax or death duties and the probate process is not complicated; and (b) there are no capital gains or other taxes payable on profits on the sale of real estate for individuals. The right to property is protected by the St Kitts-Nevis Constitution as a fundamental right in both citizens and non-citizens.

27. How far is the closest hospital to Christophe Harbour? Will there be medical facilities at Christophe Harbour? (View)

JNF General Hospital is approximately 20 minutes from Christophe Harbour by automobile. The hospital's facilities offer 265 beds and a fleet of seven ambulances.

28. What golf facilities will be available? Will the course(s) be public or private? (View)

The golf course at Christophe Harbour will be a private club with limited public play. It is anticipated that the golf club will include private locker rooms, restaurants, and facilities for Club Members.

29. How do I get to St. Kitts? How long is the runway? (View)

The Robert L. Bradshaw International Airport (SKB) on St. Kitts enjoys all of the modern conveniences of any world-class international airport of its size, and is widely acclaimed to be the best mid-size airport in the entire Caribbean. A major renovation was completed in 2006, which included complete resurfacing of the 8,000-foot runway and construction of a new taxi-way. Direct flights are available from New York, London, Miami, Charlotte, Philadelphia, Atlanta, and San Juan.

Private aircraft are welcome and may take advantage of expedited customs and immigration services. We have also received the commitment of the Government of St. Kitts and Nevis to assist in the establishment of a general aviation fixed base operation, as well as a separate lounge and Immigration office for guests arriving by private aircraft.

Currently, Port Zante, a deepwater port located in downtown Basseterre, also has a marina to accommodate yachts and other small craft.

30. How many beaches are there at Christophe Harbour? (View)

Christophe Harbour has 13 miles of coastline, including 6 white sand beaches.

31. What services are available on island (shopping, etc.)? (View)

Basseterre, the capital of St. Kitts, is full of small shops and malls carrying a wide assortment of Kittitian delights and handicrafts. Duty free shops line the Circus at Basseterre offering crystal, china, porcelain, gold and silver jewelry, tobacco, liquor, watches, leather goods, and more. St. Kitts has excellent cell phone, data transfer, and internet services and a wide variety of recreation services, including boating, snorkeling, and many other activities.

32. May I bring pets to and from St. Kitts? (View)

Yes. St. Kitts is a pet-friendly island and has in place a set of protocols to facilitate those who would like to travel with their cats and dogs. Copies of the form that must be completed to bring your cat or dog with you are available from the Christophe Harbour sales and marketing office.

33. Will the Christophe Harbour sales and marketing team be available to resell my home? (View)

Yes. We will provide all re-sale services to Christophe Harbour homeowners.

34. What services will Christophe Harbour provide with respect to maintenance and repair of my home? (View)

Complete property management services will be available to property owners for a monthly service fee.

35. How many homes will be constructed in Christophe Harbour? (View)

Christophe Harbour is currently zoned for 2,000 residential dwelling units. It is anticipated that the actual number of homesites, homes, and villas will likely be less than allowable to assure privacy and exclusivity. A number of neighborhoods will be gated for added privacy from more active areas of Christophe Harbour.

36. Will Christophe Harbour have security? (View)

Yes. Christophe Harbour will have a comprehensive and professional security program and team on the resort property.

37. Will home rentals be permitted? If so, will a rental company be provided? (View)

Yes. Home rental will be permitted in most neighborhoods. As part of the Property Management services, we anticipate providing a rental service company to provide services to Christophe Harbour homeowners.

38. Will there be any time restrictions on resale? (View)

No. Homeowners will be free to resell their home whenever they choose.

39. How can I visit Christophe Harbour? (View)

Please contact the Christophe Harbour sales and marketing office if you would like to tour Christophe Harbour. It will be our pleasure to assist you with your reservations for travel and lodging, meet you at the airport or your port of entry, give you a personal tour of Christophe Harbour, and provide other concierge services that will help you make the most of your time in St. Kitts.

For More Information Please Contact:
Thomas Liepman
Post Office Box 12001
Charleston, SC 29422
Phone: (800) 277-7008, ext. 440
Email: Thomas_liepman@christopheharbour.com