PAINEWEBBER MORTGAGE PARTNERS FIVE L P
8-K, 1998-02-02
REAL ESTATE
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                      SECURITIES AND EXCHANGE COMMISSION

                             Washington, DC  20549


                                   Form 8-K

                                CURRENT REPORT



                    Pursuant to Section 13 or 15(d) of the
                      Securities and Exchange Act of 1934


      Date of Report (Date of earliest event reported) January 20, 1998
                                                       ----------------

                   PaineWebber Mortgage Partners Five, L.P.
                   ----------------------------------------
            (Exact name of registrant as specified in its charter)

     Delaware                       0-17149                     04-2889712
- -----------------------------     ----------                 -----------------
(State or other jurisdiction)    (Commission                  (IRS Employer
        of incorporation          File Number)              Identification No.)



265 Franklin Street, Boston, Massachusetts                            02110
- ------------------------------------------                          ----------
(Address of principal executive offices)                            (Zip Code)

Registrant's telephone number, including area code (617) 439-8118
                                                   --------------


            (Former name or address, if changed since last report)




<PAGE>

                                FORM 8-K
                             CURRENT REPORT

                PAINEWEBBER MORTGAGE PARTNERS FIVE, L.P.

ITEM 2 - Disposition of Assets

   Park South Apartments, Charlotte, North Carolina

   Disposition Date - January 20, 1998

     On January 20, 1998, the Partnership  received $1,270,000 from the borrower
of the mortgage loan secured by the Park South Apartments, which represented the
full  repayment of the first  leasehold  mortgage loan held by the  Partnership.
Simultaneously, the Park South owner purchased the Partnership's interest in the
underlying land at a price of $685,000 which included a premium of $455,000 over
the Partnership's cost basis in the land of $230,000. This premium represented a
50% share in the appreciation in the value of the operating  investment property
above a specified base amount as called for under the terms of the ground lease.
The Park South  mortgage loan opened to prepayment  without  penalty on December
29, 1997. The  Partnership  owned a 23% interest in the land underlying the Park
South  Apartments  and had an  equivalent  interest in the first  mortgage  loan
secured by the improvements. The remaining 77% interest in the land and mortgage
loan receivable was owned by an affiliated  partnership,  Paine Webber Qualified
Plan Property Fund Four, LP.

     As a result of the  disposition  on January 20,  1998 of the  Partnership's
investments  secured by the Park South  Apartments,  the Partnership  expects to
make a Special Distribution of the net proceeds of this transaction by March 13,
1998 to unitholders of record as of January 20, 1998.

ITEM 7 - Financial Statements and Exhibits

   (a)  Financial Statements:  None

   (b) Exhibits:

       (1)  North  Carolina  Special  Warranty  Deed by and between  PaineWebber
            Mortgage  Partners  Five,  LP and  Park-South  Charlotte  Associates
            Limited Partnership, dated January 20, 1998.

      (2)   Cancellation  of Ground  Lease by and between  PaineWebber  Mortgage
            Partners  Five,  LP  and  Park-South  Charlotte  Associates  Limited
            Partnership, dated January 20, 1998.

      (3)   Certificate  of  Satisfaction  of  Deed of  Trust  by  Paine  Webber
            Qualified  Plan  Property  Fund Four,  LP and  PaineWebber  Mortgage
            Partners Five, LP for the benefit of Park South-Charlotte Associates
            Limited Partnership, dated January 20, 1998.



<PAGE>


                                FORM 8-K

                             CURRENT REPORT

                PAINEWEBBER MORTGAGE PARTNERS FIVE, L.P.



                               SIGNATURES



      Pursuant to the  requirements  of the Securities and Exchange Act of 1934,
the  registrant  has duly  caused  this report to be signed on its behalf by the
undersigned thereunto duly authorized.

                          PAINEWEBBER MORTGAGE
                          PARTNERS FIVE, L.P.
                              (Registrant)




                              By:  /s/ Walter V. Arnold
                                   ---------------------
                                   Walter V. Arnold
                                   Senior Vice President and
                                   Chief Financial Officer







Date:  February 2, 1998


<PAGE>

     Excise Tax $5,247.00                      Recording Time, Book and Page
- --------------------------------------------------------------------------------

Tax Lot No.  177-078-35               Parcel Identifier No.
- --------------------------                                ----------------------

Verified by _________________    County on the _____ day of_________ 19,___

by
- --------------------------------------------------------------------------------


- --------------------------------------------------------------------------------

Mail after recording to Bobby D. Hinson, Womble Carlyle Sandridge & Rice (Box__)
                        -------------------------------------------------------

- -------------------------------------------------------------------------------

This Instrument was prepared by Brent A.Torstrick, Robinson, Bradshaw & 
Hinson, P.A.
- --------------------------------------------------------------------------------


                       ----------------------------------------

Brief description for the Index      Park South Apartments

                       ----------------------------------------

- --------------------------------------------------------------------------------
                      NORTH CAROLINA SPECIAL WARRANTY DEED

THIS DEED made the  20th day of January, 1998    , by and between
                   -----        -------------    
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>

                   GRANTOR                                       GRANTEE
<S>                                                 <C>

  PAINEWEBBER  MORTGAGE  PARTNERS FIVE,  L.P.,      PARK  SOUTH-CHARLOTTE  ASSOCIATES
  LIMITED a Delaware limited  partnership  doing    PARTNERSHIP,  a North Carolina
  limited  business  in  North  Carolina  as        PAINEWEBBER  partnership  MORTGAGE
  PARTNERS FIVE, LIMITED PARTNERSHIP                c/o CTJ Real Estate, Inc.
                                                    212 South Tryon Street, Suite 1350
                                                    Charlotte, North Carolina  28281
</TABLE>



Enter in appropriate block for each party:  name, address, and, if appropriate,
character of entity, e.q. corporation or partnership.
- --------------------------------------------------------------------------------

The  designation  Grantor and Grantee as used herein shall include said parties,
their  heirs,  successors,  and assigns,  and shall  include  singular,  plural,
masculine, feminine or neuter as required by context.

WITNESSETH,  that the Grantor, for a valuable consideration paid by the Grantee,
the  receipt of which is hereby  acknowledged,  has and by these  presents  does
grant,  bargain,  sell and convey  unto the  Grantee in fee  simple,  a 23.0769%
undivided interest, as tenant in common, in and to that certain lot or parcel of
land situated in the City of Charlotte,  Mecklenburg County,  North Carolina and
more particularly  described on Exhibit A attached hereto and made a part hereof
by reference.
<PAGE>

The  property  hereinabove  described  was  acquired  by Grantor  by  instrument
recorded in Book 5936 at Page 312 in the Mecklenburg County Public Registry.

A map showing the above  described  property is recorded in Plat Book ____, page
____.

TO HAVE AND TO HOLD the aforesaid lot or parcel of land and all  privileges  and
appurtenances thereto belonging to the Grantee in fee simple.

And the Grantor  covenants  with the  Grantee,  that Grantor has done nothing to
impair such title as Grantor  received,  and Grantor will warrant and defend the
title  against the lawful  claims of all persons  claiming  by, under or through
Grantor, except for the exceptions hereinafter stated.

Title  to the  property  hereinabove  described  is  subject  to  the  following
exceptions:


   See Exhibit B attached hereto and made a part hereof by reference.




IN WITNESS  WHEREOF,  the  Grantor  has  hereunto  set his hand and seal,  or if
corporate,  has caused this instrument to be signed in its corporate name by its
duly authorized officers and its seal to be hereunto affixed by authority of its
Board of Directors, the day and year first above written.




<PAGE>


[OBJECT OMITTED]

SEE ATTACHED PAGE FOR SIGNATURES AND
ACKNOWLEDGMENT
- ------------------------------------------
            (Corporate Name)

By:
   --------------------------------------

                       President
- ------------------------

ATTEST:

- -----------------------------------------

                       Secretary
                       (Corporate Seal)
- ------------------------

                                   (SEAL)
- ------------------------------------


                                   (SEAL)
- ------------------------------------


                                   (SEAL)
- ------------------------------------


                                   (SEAL)
- ------------------------------------



<PAGE>


[OBJECT OMITTED]
SEAL-STAMP




NORTH CAROLINA, ______________________                County.

I, a Notary  Public of the County and State  aforesaid,  certify  that  Grantor,
personally  appeared  before me this day and  acknowledge  the  execution of the
foregoing instrument. Witness my hand and official stamp or seal,

this _____  day of ___________ , 19 ______.

My commission expires: ______________  ___________________________ Notary Public
                     



<PAGE>


[OBJECT OMITTED]


SEAL-STAMP





NORTH CAROLINA,____________________ County.

I, a Notary Public of the County ______________________  ,
and State aforesaid, certify that_______________________________-
personally came before me this day and acknowledged that _______ he is ________
Secretary of _____________________ a North Carolina corporation, and that by 
authority duly given and as the act of the corporation, the foregoing instrument
was signed in its name by its ____________ President, sealed with its corporate 
seal and attested by ________ as its ______________ Secretary.

Witness my hand and official stamp or seal, this _____day of _______, 19 ____

My commission expires: ____________   ____________----------___  Notary Public

<PAGE>






The foregoing Certificate(s) of ------------------------------------------------

- --------------------------------------------------------------------------------

is/are  certified to be correct.  This instrument and this  certificate are duly
registered at the date and time and in the Book and Page shown on the first page
hereof.

                                          REGISTER OF DEEDS              COUNTY
                                          FOR              --------------
- -----------------------------------------

By                                        Deputy/Assistant-Register of Deeds
  -------------------------------------


<PAGE>



                                        PAINEWEBBER MORTGAGE PARTNERS FIVE,
                                        L.P., a Delaware limited partnership
                                        doing business in North Carolina as
                                        PAINEWEBBER MORTGAGE PARTNERS FIVE,
                                        LIMITED PARTNERSHIP        (SEAL)

                                        By:   FIFTH MORTGAGE PARTNERS, INC., a
                                              Delaware corporation, Managing
                                              General Partner

ATTEST:                                       By:/s/ Rock M. D'Errico
                                                 ---------------------
                                                 Vice President
- --------------------------------------
__________________ Secretary

[CORPORATE SEAL]



STATE OF NORTH CAROLINA

COUNTY OF ___________________


      This  ______  day of  _______________,  1998,  personally  came  before me
___________________________,  who  being by me duly  sworn,  says that he is the
______  President of FIFTH  MORTGAGE  PARTNERS,  INC.,  a Delaware  corporation,
Managing General Partner of PAINEWEBBER MORTGAGE PARTNERS FIVE, L.P., a Delaware
limited  partnership  doing business in North  Carolina as PAINEWEBBER  MORTGAGE
PARTNERS FIVE, LIMITED  PARTNERSHIP,  and that the seal affixed to the foregoing
instrument in writing is the corporate  seal of the  corporation,  and that said
writing  was signed and sealed by him, in behalf of said  corporation  acting in
its capacity as manager of Company, by authority duly given. And the said ______
President  acknowledged  the  said  writing  to be the  act  and  deed  of  said
corporation, on behalf of said limited partnership.


                                    -----------------------------------
                                                Notary Public

My Commission Expires:

- ---------------------

[NOTARIAL SEAL]



<PAGE>


                               EXHIBIT A

That certain tract of land located in the City of Charlotte,
Mecklenburg County, North Carolina, more particularly shown on that
survey entitled "Survey for Sterling Apartments, LLC, 4001 Sharon Road
& Colony Road, Charlotte, Mecklenburg County, North Carolina," dated
October 21, 1997, last revised January 6, 1998 and prepared by R. B.
Pharr & Associates, P.A. (C. Clark Neilson, N.C.R.L.S.) (the "Survey"),
and more particularly described as follows:

      BEGINNING at an existing  iron pin located  North  56-04-02 West 7.95 feet
      from an existing iron pin in the  westerlymost  margin of the right-of-way
      of Sharon Road  (80-foot  public  right-of-way)  and in the  southerlymost
      corner of Lot 9 in Section 2 of the Village of Morrocroft Subdivision,  as
      shown on that  subdivision plat recorded in Map Book 19 at Page 623 in the
      Mecklenburg Public Registry (the "Registry"),  and running thence with the
      southerlymost  boundary of Lots 9 through 15 in that subdivision three (3)
      courses and distances as follows:  (1) North  56-04-02 West 265.01 feet to
      an existing  iron pin; (2) North  82-19-43 West 483.35 feet to an existing
      iron pin; and (3) North  26-46-42  West 58.03 feet to an existing iron pin
      in a common  boundary  with  the  property  of  Morrocroft  Apartments  as
      described in that Deed  recorded in Book 3769 at Page 62 in the  Registry;
      thence with a common boundary of the Morrocroft  Apartments property South
      13-40-05 West 257.94 feet to an existing iron pin; thence  continuing with
      the common boundary of the Morrocroft  Apartments property which becomes a
      common  boundary  line with the property of Park Colony  Apartments,  Ltd.
      (now or formerly) as described in that deed  recorded in Book 5242 at Page
      354 in the Registry  South  03-08-47  East 313.10 feet to an existing iron
      pin; thence with a common boundary of the Park Colony Apartments  property
      South  39-53-00  West  460.32  feet to an  existing  iron  pin in a common
      boundary with a Cemetery Tract;  thence two (2) courses and distances with
      the boundary of that Cemetery  Tract as follows:  (1) South  12-00-52 East
      103.67 feet to an existing  iron pin; and (2) North  68-30-10  West 161.03
      feet to an existing iron pin;  thence South  42-36-27 West 83.30 feet to a
      new iron pin in the northeasterlymost margin of the right-of-way of Colony
      Road (right-of-way varies);  thence with that margin three (3) courses and
      distances as follows:  (1) in a  southeasterly  direction  with the arc of
      circular curve to the left having a radius of 977.70 feet, an arc distance
      of 70.68 feet (chord  bearing and distance South 48-47-23 East 70.67 feet)
      to a new iron pin; (2) South  55-32-25 East 342.50 feet to a new iron pin;
      and (3) South  50-23-01  East 110.81  feet to an existing  iron pin at the
      southwesterlymost terminus of the radius formed by the intersection of the
      northeasterlymost  margin  of the  right-of-way  of  Colony  Road  and the
      northwesterlymost margin of the right-of-way of Sharon Road (rights-of-way
      vary); thence with that radius and with the arc of a circular curve to the
      left  having a radius of 20 feet,  an arc  distance  of 31.42 feet  (chord
      bearing and distance  North 84-17-13 East 28.28 feet) to a new iron pin in
      the  northwesterlymost  margin of the right-of-way of Sharon Road;  thence
      with that  margin four (4) courses  and  distances  as follows:  (1) North
      38-10-04  East  203.35  feet to a new iron pin;  (2) North  40-33-47  East
      353.99 feet to an existing iron pin; (3) with the arc of a circular  curve
      to the left having a radius of 3,840.50  feet,  an arc  distance of 647.20
      feet (chord  bearing and distance  North  35-43-56 East 646.44 feet) to an
      existing iron pin; and (4) North 30-54-16 East 128.86 feet to the existing
      iron pin at the point or place of  BEGINNING,  containing  16.7543  acres,
      according to the Survey.

      TOGETHER WITH all right, title and interest, if any, of Grantor in and to:
(a) any  rights-of-way,  easements and appurtenances  which are now or hereafter
used in connection  with the  above-described  tract of land or are  appurtenant
thereto,  including but not limited to that certain drainage easement created by
instrument  recorded in Book 3930 at Page 883 in the  Mecklenburg  County Public
Registry;  and (b) the land within the  rights-of-way  of Sharon Road and Colony
Road adjacent to the above-described tract of land.

      THERE IS EXPRESSLY  EXCLUDED  FROM THIS  CONVEYANCE  all right,  title and
interest in the footings, foundations, columns, piles, buildings,  improvements,
fixtures,  equipment and other installations located,  constructed or erected on
the  above-described  tract of land,  the  ownership  of  which  was  previously
retained by  Grantee.  It is the intent to Grantor to reconvey to Grantee all of
the  property  conveyed  to it by Grantee by that deed  recorded in Book 5936 at
Page 312 in the Mecklenburg County Public Registry.


<PAGE>


                               EXHIBIT B

1.    Ad valorem real estate taxes for 1998 and subsequent years, a lien but not
      yet due and payable.

2.    Easements to Duke Power  Company  recorded in Book 938 at Page 559, and in
      Book 3965 at Page 258 of the Mecklenburg County Public Registry.

3.    Rights-of-way of Colony Road and Sharon Road.

4.    30'  planter  strip  along  the  margin of Sharon  Road,  imposed  by deed
      recorded  in Book  3929  at  Page  561 of the  Mecklenburg  County  Public
      Registry.

5.    Sewer and water main easement to the City of  Charlotte,  recorded in Book
      3930 at Page 889 of the Mecklenburg County Public Registry.

6.    Easement to Southern Bell  Telephone and  Telegraph  Company,  recorded in
      Book 3965 at Page 803 of the Mecklenburg County Public Registry.



<PAGE>


STATE OF NORTH CAROLINA
                                            CANCELLATION OF GROUND LEASE
COUNTY OF MECKLENBURG

      THIS  CANCELLATION  OF GROUND LEASE is made and entered into this 20th day
of January,  1998 by and between  PAINEWEBBER  MORTGAGE  PARTNERS FIVE,  L.P., a
Delaware  limited  partnership  doing  business in North Carolina as PAINEWEBBER
MORTGAGE   PARTNERS   FIVE,   LIMITED   PARTNERSHIP   ("Landlord"),   and   PARK
SOUTH-CHARLOTTE   ASSOCIATES  LIMITED  PARTNERSHIP,  a  North  Carolina  limited
partnership ("Tenant").


                                RECITALS

      A.  Landlord  and  Tenant  entered  into a Ground  Lease  effective  as of
December 29, 1988 (the "Lease"), pursuant to which Landlord leased to Tenant its
23.0769% undivided interest,  as a tenant in common, in a parcel of land located
at the  northwest  corner  of  Colony  Road  and  Sharon  Road,  in the  City of
Charlotte,  Mecklenburg County, North Carolina (the "Property"). A memorandum of
the Lease is recorded in Book 5937 at Page 515 in the Mecklenburg  County Public
Registry.

      A. By special  warranty  deed dated  January 20, 1998 and  recorded in the
Mecklenburg  County Public Registry  immediately  prior to the recording of this
Cancellation  of Ground Lease,  Landlord has conveyed its undivided  interest in
the Property to Tenant,  and the parties desire to execute this  Cancellation of
Ground Lease to confirm of record the  termination  of the Lease by operation of
the doctrine of merger.


                         STATEMENT OF AGREEMENT

      NOW,  THEREFORE,  in  consideration of the mutual covenants and conditions
hereinafter  set  forth,  Landlord  and  Tenant  agree  for  themselves,   their
successors and assigns as follows:

      7. The Lease is hereby canceled and terminated as of January __, 1998 (the
"Effective  Date"),  and neither party shall have any further  obligations under
the Lease after the Effective Date.

      8.  Landlord  represents  and  warrants to Tenant that the  execution  and
delivery  of this  Cancellation  of  Ground  Lease by  Landlord  have  been duly
authorized  by all  requisite  partnership  action,  and  that  no  consents  or
approvals of any third parties are required.

      9. Tenant  represents  and  warrants to Landlord  that the  execution  and
delivery  of this  Cancellation  of  Ground  Lease  by  Tenant  have  been  duly
authorized by all requisite  partnership  action,  and no approval or consent of
any third party is required.

      10. This  Cancellation of Ground Lease contains the complete  agreement of
the parties regarding the terms and conditions of the cancellation of the Lease,
and there are no oral or written agreements, conditions, terms or understandings
that have not been incorporated in this Cancellation of Ground Lease.

      IN WITNESS WHEREOF,  the parties hereto have executed this Cancellation of
Ground Lease under seal as of the day and year first above written.



<PAGE>



                                    LANDLORD:

                                        PAINEWEBBER MORTGAGE PARTNERS FIVE,
                                        L.P., a Delaware limited partnership
                                        doing business in North Carolina as
                                        PAINEWEBBER MORTGAGE PARTNERS FIVE,
                                        LIMITED PARTNERSHIP        (SEAL)

                                        By:   FIFTH MORTGAGE PARTNERSHIP,
                                              INC., a Delaware corporation,
                                              Managing General Partner

ATTEST:                                       By: /s/ Rock M. D'Errico
                                                  ---------------------
                                                    Vice President
- --------------------------------------
__________________ Secretary

[CORPORATE SEAL]

                                     TENANT:

                                        PARK SOUTH-CHARLOTTE ASSOCIATES
                                        LIMITED PARTNERSHIP, a North Carolina
                                        limited partnership

                                        By:   THE PARK SOUTH COMPANY, a Texas
                                              general partnership, its general
                                              partner

                                              By: /s/ James T. Cobb  (SEAL)
                                                  -----------------
                                                  James T. Cobb, Managing
                                                  General Partner



<PAGE>


COMMONWEALTH OF MASSACHUSETTS

COUNTY OF SUFFOLK

     This  ______  day of  January,  1998,  personally  came  before  me Rock M.
D'Errico,  who,  being by me duly sworn,  says that he is the Vice  President of
Fifth Mortgage Partners,  Inc., Managing General Partner of PAINEWEBBER MORTGAGE
PARTNERS  FIVE,  L.P., a Delaware  limited  partnership  doing business in North
Carolina as PAINEWEBBER  MORTGAGE PARTNERS FIVE, LIMITED  PARTNERSHIP,  and that
the seal affixed to the foregoing instrument in writing is the corporate seal of
the  company,  and that said  writing was signed and sealed by him, in behalf of
said  corporation,  by its  authority  duly given.  And the said Vice  President
acknowledged  the said  writing to be the act and deed of said  corporation,  on
behalf of said limited partnership.



                                             -----------------------------------
                                                      Notary Public
My commission expires:

- ---------------------

[NOTARIAL SEAL]


STATE OF NORTH CAROLINA

COUNTY OF MECKLENBURG

      This ______ day of January, 1998, personally came before me James T. Cobb,
who, being by me duly sworn, says that he is the Managing General Partner of The
Park South Company, a Texas limited  partnership and the sole general partner of
PARK SOUTH-CHARLOTTE  ASSOCIATES LIMITED  PARTNERSHIP,  a North Carolina limited
partnership,  and acknowledged the due execution of the foregoing  instrument on
behalf of said partnerships.

      WITNESS my hand and official seal, this the ______ day of January, 1998.



                                             -----------------------------------
                                                      Notary Public
My commission expires:

- ---------------------

[NOTARIAL SEAL]









<PAGE>


STATE OF NORTH CAROLINA                   CERTIFICATE OF SATISFACTION
                                             OF DEED OF TRUST
COUNTY OF MECKLENBURG                     (N.C.G.S. ss.45-37(a)(6) & ss.47-46.2)

      The undersigned,  Vice President of Fourth Qualified  Properties,  Inc., a
Delaware  corporation and the Managing General Partner of PAINEWEBBER  QUALIFIED
PLAN PROPERTY FUND FOUR, LP, a Delaware  limited  partnership  doing business in
North  Carolina  as  PAINEWEBBER  QUALIFIED  PLAN  PROPERTY  FUND  FOUR  LIMITED
PARTNERSHIP  ("PWQP4") and the  undersigned,  Vice  President of Fifth  Mortgage
Partners,  Inc.,  a Delaware  corporation  and the Managing  General  Partner of
PAINEWEBBER  MORTGAGE PARTNERS FIVE, L.P., a Delaware limited  partnership doing
business in North  Carolina  as  PAINEWEBBER  MORTGAGE  PARTNERS  FIVE,  LIMITED
PARTNERSHIP  ("PWMP5"),  certify that PWQP4 and PWMP5 are collectively the owner
of the indebtedness secured by the following security instruments,  and that the
debt or other  obligations in the aggregate amount of $5,500,000.00  secured by:
(a) that Deed of Trust and Security  Agreement  executed  and  delivered by Park
South-Charlotte  Associates Limited Partnership  ("Grantor") to Gibson L. Smith,
Jr.  ("Trustee") for the benefit of PWQP4 and PWMP5,  and recorded in Book 5937,
Page 877 of the Mecklenburg  County Public Registry,  as amended by Modification
of Deed of Trust and Security Agreement recorded in Book 5962, Page 501; and (b)
that  Assignment of Leases and Rents  executed and delivered by Grantor to PWQP4
and PWMP5,  and recorded in Book 5937, Page 502, was fully paid and satisfied on
January 20, 1998.

      PWQP4 and PWMP5 request that this  Certificate of Satisfaction be recorded
and the above referenced security instruments be cancelled of record.

      As of the 20th day of January, 1998.

                                       PAINEWEBBER QUALIFIED PLAN PROPERTY
                                       FUND FOUR, LP, a Delaware limited
                                       partnership doing business in North
                                       Carolina as PAINEWEBBER QUALIFIED PLAN
                                       PROPERTY FUND FOUR LIMITED PARTNERSHIP
                                       (SEAL)

                                       By:   Fourth Qualified Properties, Inc.,
                                             a Delaware corporation, Managing
                                             General Partner

ATTEST:                                      By:  /s/ Rock M. D'Errico
                                                  --------------------
                                                  Vice President
- --------------------------------------
__________________ Secretary

[CORPORATE SEAL]

                                       PAINEWEBBER MORTGAGE PARTNERS FIVE,
                                       L.P., a Delaware limited partnership
                                       doing business in North Carolina as
                                       PAINEWEBBER MORTGAGE PARTNERS FIVE,
                                       LIMITED
                                       PARTNERSHIP
                                       (SEAL)

                                       By:   Fifth Mortgage Partners, Inc.,
                                             a Delaware corporation, Managing
                                             General Partner

ATTEST:                                      By:  /s/ Rock M. D'Errico
                                                  --------------------
                                                  Vice President

___________________________________ 
__________________ Secretary

[CORPORATE SEAL]



COMMONWEALTH OF MASSACHUSETTS

COUNTY OF SUFFOLK

     This  ______  day of  January,  1998,  personally  came  before  me Rock M.
D'Errico,  who,  being by me duly sworn,  says that he is the Vice  President of
Fourth  Qualified  Properties,  Inc.,  Managing  General  Partner of PAINEWEBBER
QUALIFIED PLAN PROPERTY FUND FOUR,  L.P., a Delaware limited  partnership  doing
business in North  Carolina as  PAINEWEBBER  QUALIFIED  PLAN  PROPERTY FUND FOUR
LIMITED  PARTNERSHIP,  and that the seal affixed to the foregoing  instrument in
writing is the corporate  seal of the company,  and that said writing was signed
and sealed by him, in behalf of said  corporation,  by its authority duly given.
And the said Vice President acknowledged the said writing to be the act and deed
of said corporation, on behalf of said limited partnership.



                                             -----------------------------------
                                                      Notary Public
My commission expires:

- ---------------------

[NOTARIAL SEAL]


<PAGE>


COMMONWEALTH OF MASSACHUSETTS

COUNTY OF SUFFOLK

     This  ______  day of  January,  1998,  personally  came  before  me Rock M.
D'Errico,  who,  being by me duly sworn,  says that he is the Vice  President of
Fifth Mortgage Partners,  Inc., Managing General Partner of PAINEWEBBER MORTGAGE
PARTNERS  FIVE,  L.P., a Delaware  limited  partnership  doing business in North
Carolina as PAINEWEBBER  MORTGAGE PARTNERS FIVE, LIMITED  PARTNERSHIP,  and that
the seal affixed to the foregoing instrument in writing is the corporate seal of
the  company,  and that said  writing was signed and sealed by him, in behalf of
said  corporation,  by its  authority  duly given.  And the said Vice  President
acknowledged  the said  writing to be the act and deed of said  corporation,  on
behalf of said limited partnership.



                                             -----------------------------------
                                                      Notary Public
My commission expires:

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[NOTARIAL SEAL]



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