EXTENSION AGREEMENT

Exhibit 10.32

EXTENSION AGREEMENT

This is an agreement dated as of August 26, 2003 between Lennar Corporation (“Lennar”), a Delaware corporation, and LNR Property Corporation (“LNR”), a Delaware corporation, formerly named LPC, Inc., extending the provisions of Paragraphs 4.1 and 4.2 of the Separation and Distribution Agreement (the “Separation Agreement”) dated June 10, 1997 between Lennar and LNR, as amended on October 31, 1997.

The agreement between Lennar and LNR is as follows:

1. Lennar agrees to be bound by Paragraph 4.1 of the Separation Agreement until November 30, 2005.

2. LNR agrees to be bound by Paragraph 4.2 of the Separation Agreement until November 30, 2005.

3. Lennar and LNR each agrees that no violation of Paragraph 4.1 or Paragraph 4.2 of the Separation Agreement that has occurred between December 1, 2002 and the date of this Agreement will give rise to any claim by either of them against the other of them.

4. Paragraphs 4.3