SW3130501_7-Ladera CCRs DB 6392 Pg 867-917_20200713

FILED
UNION COUNTY, NC
CRYSTAL CRUMP
REGISTER OF DEEDS
FILED Mar 04, 2015
AT 04:07 pm
BOOK 06392
START PAGE 0867
END PAGE 0917
INSTRUMENT # 05669
EXCISE TAX (None)
JT
DECLARATION OF COVENANTS,
CONDITIONS AND RESTRICTIONS
FOR
LADERA
THIS DOCUMENT REGULATES OR PROHIBITS THE DISPLAY OF THE FLAG OF
THE UNITED STATES OF AMERICA OR THE STATE OF NORTH CAROLINA.
THIS DOCUMENT REGULATES OR PROHIBITS THE DISPLAY OF POLITICAL
SIGNS.
Drawn by and upon recording, please return to:
Michael F. King, Esq,
IC&L Gates LLP
P.O. Box 17047, Raleigh, North Carolina 27619-7047
Vault Box #123
RA-3114902 vb

DECLARATION OF COVENANTS,
CONDITIONS AND RESTRICTIONS
FOR
LADERA
This Declaration is made as of the date of its recordation in the office of the Register of
Deeds for Union County, North Carolina, by STANDARD PACIFIC OF THE CAROLINAS,
LLC, a Delaware limited liability company ("Declarant') with reference to the following facts:
WITNESSETH:
WHEREAS, Declarant is the owner of certain real property commonly known as Ladera
subdivision, which real property, together with such portions of the Additional Land (as
hereinafter defined), if any, as Declarant may elect to add to such property by filing of a Map
thereof and supplemental filing pursuant to Article 15 hereof, shall be hereinafter referred to as
LADERA located in Union County, North Carolina and more particularly described in Article 2
below ("Property"). Declarant intends to improve Ladera as a planned residential development
by dividing such property into Lots appropriate for single family dwellings and Common Area
for the common use and enjoyment of the Owners of the Lots; and
WHEREAS, Declarant owns or may hereafter own real property in Union County, North
Carolina located adjacent to the property hereinabove described (which, if applicable to this
Declaration, is more particularly described on Exhibit B attached hereto and made a part hereof
and referred to herein as the "Additional Land"). Declarant may, in its sole discretion and
without obligation, by one or more supplemental filings pursuant to Article 15 hereof, make all
or any portion of the Additional Land, if any, subject to this Declaration and a part of Ladera;
and
WHEREAS, Declarant intends to develop Ladera under a common scheme and general
plan for its improvement and maintenance; and
WHEREAS, for this purpose Declarant intends to (and with respect to the Additional
Land, if any, reserves the right to), subject the Property as described in Article 2 below, and so
much of the Additional Land, if any, as shall, from time to time, be annexed in accordance with
the provisions of this Declaration, to the covenants, conditions, restrictions, easements, liens,
charges, assessments and equitable servitudes set forth in this Declaration, for the benefit of
Ladera and the future owners of Lots therein; and
WHEREAS, Declarant deems it desirable for the management and administration of the
planned development and for the preservation of the values and amenities of the planned
development to incorporate Ladera Owners Association, Inc. as a nonprofit corporation under the
laws of the State of North Carolina for the purposes of administering the limitations, covenants,
conditions, restrictions, easements, liens and equitable servitudes created by or imposed in
accordance with the provisions hereof, collecting and disbursing the assessments and charges
imposed in accordance with the provisions hereof, and exercising such other powers as may be
authorized by this Declaration, by law, or by its Articles of Incorporation and Bylaws; and
RA-3114902 vb

WHEREAS, this Declaration creates a planned community under the North Carolina
Planned Community Act (N. C. Gen. Stat. Chap. 47F),
NOW, THEREFORE, subject to the rights of Declarant established herein, Declarant
hereby declares that the Property and every Lot and Common Area (as hereinafter defined)
which is a part of the Property shall be held, occupied, improved, used, mortgaged, transferred,
sold, leased, rented and conveyed subject to the following easements, liens, charges,
assessments, equitable servitudes, restrictions, covenants and conditions, which are for the
purpose of protecting the value, use, enjoyment and desirability of the Property, and which shall
run with such real property and shall be binding on all parties having any right, title or interest in
the Property or any part thereof, their heirs, successors and assigns, and shall inure to the use,
benefit and enjoyment of each Owner (as hereinafter defined).
ARTICLE 1
DEFINITIONS
The following terms shall have the following meanings when used in this Declaration:
Act. "Act" means and refers to the North Carolina Planned Community Act, Chapter
47F, North Carolina General Statutes as same may be amended from time to time.
Additional Land. "Additional Land" means the real property described on Exhibit B, if
any shall be attached hereto, all or any portion of which may from time to time be made subject
to this Declaration pursuant to the provisions of Article 15 hereof and which, when so subjected,
shall become a part of the Property.
Annual Assessment. "Annual Assessments" or "annual assessments" shall refer to
assessments levied on all Lots subject to assessment under Article 9 to fund Common Expenses
for the general benefit of all Lots, as more particularly described in Article 9.
Architectural Control Committee. "Architectural Control Committee" or "ACC" shall
mean the committee of the Association created pursuant to Article 13 with authorization over
new construction, modifications and alterations in the Property.
Articles. "Articles" means the Articles of Incorporation of the Association, including any
amendments thereto.
Association. "Association" means Ladera Owners Association, Inc., a North Carolina
nonprofit corporation, its successors and assigns.
Board. "Board" means the Board of Directors of the Association.
Bylaws. "Bylaws" means the Bylaws of the Association, including any amendments
thereto.
Common Area. "Common Area" or "Common Areas" means
all real property owned
by
or held in bust for the
benefit of the Association for the common
use and enjoyment of
its
Members, or owned by
Declarant and designated for the common
use and enjoyment of
the
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Association and its Members, and all improvements and facilities constructed thereon for such
purposes, including, but not limited, to (without any obligation or implication of Declarant to
construct or install same) any signage, irrigation and/or drainage or detention facilities, pond,
dam, dock, pump station and related facilities, fountain, water feature, wells, pumps and related
facilities, landscaping, retaining walls, bridges, lighting, swimming pool, wading pool, green or
natural area, walking paths or trails, picnic area, putting green, club house, roadway, driveway,
parking area, sports complex, ballfreld, playground, tot lot, gazebo, private streets and curb and
guttering related to same, streetlights, or other amenity, if any, constructed on portions of the
Property designated "Common Open Space", "Common Area", "Private Open Space," "Amenity
Area" or other similar designation on Map(s) of the Property recorded in the public registry of
the County and any County Code required shared facility or open space not conveyed to the
County. "Common Area" or "Common Areas" shall also include (i) all private streets and
private utilities, if any, including any utility line serving more than one lot located outside of
public street rights -of -way and public utility easements, (ii) any public road, right-of-way or cul-
de-sac in the Property which has been dedicated to the public on Map(s) of the Property recorded
in the County but not accepted for public maintenance by the appropriate governmental entity,
(iii) any median or planting area and related signage, irrigation facilities and lighting constructed
by Declarant within rights -of -way within the Property, (iv) any real or personal property which
the Association now or hereafter owns, leases or holds possessory or use rights in for the benefit
of the Owners and their permittees, (v) such easement rights for right-of-way and appurtenant
easements or licenses as Declarant may declare, acquire or reserve or as are granted to the
Association for the benefit of the Owners and their permittees or for the use, care or maintenance
of any portion of the Property, including, but not limited to, rights -of -way and appurtenant
easements or licenses for landscaping, trees, plantings, irrigation, signage, monuments, lighting,
water, sanitary sewer, storm sewer, stormwater drainage and/or retention, communications
and/or other utility services, (vi) all recorded tree conservation areas shown on any recorded Map
of the Property, (vii) the Security Gates located on the Property, and (viii) cluster mailboxes
installed by Declarant on the Lots or other portion of the Property. Declarant hereby grants to
the Association an easement over any road, right-of-way or cul-de-sac within the Property which
shall automatically terminate upon dedication to and acceptance for public maintenance by the
appropriate governmental entity
Common Expenses. "Common Expenses" shall mean the actual and estimated expenses
incurred or anticipated to be incurred by the Association, including any reasonable reserve, all as
may be found to be necessary and appropriate by the Board pursuant to this Declaration, the
Bylaws, and the Articles of Incorporation of the Association, but shall not include any expenses
for initial development, original construction, installation of infrastructure, original capital
improvements, or other original construction costs for improvements constructed by Declarant
unless approved by a majority of the Voting Power of the Association; provided, however, the
repair, maintenance and replacement of such infastructure or other original capital
improvements shall be a Common Expense and lease payments on all leased street lights within
the Property shall be a Common Expense. Common Expenses shall include (i) all sums lawfully
assessed by the Association against its Members; (ii) the actual and estimated expenses incurred
or anticipated to be incurred by the Association for administration, maintenance, repair, or
replacement of the Common Area; (iii) the actual and estimated expenses incurred or anticipated
to be incurred by the Association declared to be Common Expenses by the provisions of this
Declaration, the Bylaws, or the Articles of Incorporation of the Association; (iv) premiums for
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hazard, liability, casualty and such other insurance as the Declaration or the Bylaws may require
or authorize the Association to purchase or which the Association is required by law to purchase;
(v) ad valorem taxes and assessment charges lawfully levied against the Common Area owned in
fee simple by the Association; (vi) the actual and estimated expenses incurred or anticipated to
be incurred by the Association as agreed by the Members to be Common Expenses of the
Association; (vii) fees for utilities used in connection with the Common Area; (viii) fees for
services of accountants, attorneys, engineers, managers and other professionals engaged by the
Association; (ix) any payments to the County under the Stormwater Facility Agreement; (xi) all
expenses classified as Common Expenses pursuant to the Act; (xii) unpaid assessments
following a foreclosure; (xii) lease payments on all leased street lights within the Property; (xiv)
expenses incurred for trash removal providers engaged by the Association to serve the Property;
and (xv) all costs associated with the use and maintenance of the Security Gates, including all
costs associated with the security passes for each Owner to use the Security Gates.
Completion of Sales. "Completion of Sales" means the earlier of (a) the conveyance of all
Lots in the Property to purchasers other than a builder or a successor Declarant hereunder, or (b)
at such time as Declarant records a Notice of Termination of Sales in the public records of the
County.
County. "County" means Union County in the State of North Carolina.
County Code. "County Code" means the Code of Ordinances of Union County.
Declarant. "Declarant" means Standard Pacific of the Carolinas, LLC, a Delaware
limited liability company, and any successor or assign to whom Declarant assigns its interest as
Declarant hereunder in whole or in part by instrument recorded in the official records of the
County.
hereto.
Declaration. "Declaration" means this Declaration and all amendments or supplements
Exempt Property. "Exempt Property" is defined in Section 9.16.
Insurance Trustee. "Insurance Trustee" means a national banlcirig association or title
company licensed to do business in North Carolina as may be designated by the Association to
hoId and disburse funds as trustee for the Association and the Owners, as provided in this
Declaration.
Le>;al Requirement. "Legal Requirement" is defined as and includes any duly adopted
and applicable law, ordinance, regulation or requirement of the United States of America, the
State of North Carolina, the County, or any other governmental entity or quasi -governmental
entity or agency having jurisdiction over the Property or any portion thereof, including any
branch, department or division of any of the foregoing governmental and quasi -governmental
entities.
Lot. "Lot" means any numbered lot or plot of land, together with any improvements
thereon, which is shown upon any Map covering the Property, or a part thereof, which is not
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dedicated right-of-way or Common Area (provided, certain Common Area easements may
encroach upon a Lot).
Map. "Map" means a recorded boundary, recombination or subdivision plat of all or a
portion of the Property recorded in the Union County Public Registry.
Member. "Member" means a member of the Association.
Morteage. "Mortgage" means a mortgage or deed of trust which consfitutes a first lien
upon a Lot given to a bank, savings and loan association or other institutional lender for the
purpose of securing indebtedness incurred to purchase or improve a Lot.
Mortgaeee. "Mortgagee" means the holder of the beneficial interest in any Mortgage.
Notice and Opportunity for Hearing. "Notice and Opportunity for Hearing" means
giving at least ten (10) days' prior notice of a proposed action and the reasons therefor, and an
opportunity to be heard by the Board, orally or in writing, not less than five (5) days before the
effective date of the proposed action.
Owner. "Owner" means the record owner, whether one or more persons or entities, of
fee simple title to any Lot, and shall include Declarant as to any Lot owned by Declarant.
"Owner" shall not include any person or entity who holds an interest in a Lot merely as security
for the performance of an obligation or as a tenant.
Person. "Person" means an individual, corporation, partnership, limited liability
company, trustee or other legal entity capable of holding title to real property.
Phase. "Phase "means the real estate shown on each Map of the Property, including the
portion of Ladera described in Article 2 below, as recorded in the Union County Public Registry.
Proer . "Property" means the portion of Ladera described in Article 2 below and, when
and if subjected to the terms and provisions of this Declaration by Declarant acting in its sole
discretion, all or any portion of the Additional Land, if any, and any other real property subjected
to this Declaration by Supplemental Declaration recorded pursuant to Article 15 hereof.
Registrv. "Registry" shall mean and refer to the Office of the Register of Deeds of Union
County, North Carolina.
Rules and ReNlations. "Rules and Regulations" means reasonable and
nondiscriminatory rules and regulations as may be adopted from time to time by the Association,
provided notice of such rules and regulations has been given to Owners in; accordance with the
requirements of this Declaration.
Special Assessment. "Special Assessment" or "special assessment" shall mean and refer
to assessments levied in accordance with Article 9, Sections 9.06 and 9.07 of this Declaration.
Special
Declarant
Rights.
"Special
Declarant Rights" means, without limitation,
the
rights as
defined in Section
47F-1-103(28)
of the Act for the benefit of Declarant and
its
RA-3114902 vb

appointees which are hereby reserved in favor of Declarant, including, but not limited to the
following: the right to complete, repair, maintain, replace and operate improvements indicated on
Maps of the Property, including, without limitation, utility infrastructure, dwellings and
Common Area improvements; the right to exercise any development right; the right to maintain
sales offices, management offices, construction trailers, models and signs advertising the
Property; the right to use easements through the Common Area and through any Lot or Lots for
the purpose of malting, improvements within the Property and repairing, maintaining, replacing
and operating improvements within the Property, provided that following the exercise of such
rights the Property will be restored, and the right to elect, appoint or remove any officer or Board
member of the Association during the period of Declarant control described in Section 8.06,
Stormwater Facility. "Stormwater Facility" or "Stormwater Facilities" is defined as any
one or more of the following that serves or benefits any part or all of the Property or is required
by Legal Requirements in connection with any part or all of the Property, whether located in the
Property or outside of the Property: (i) "drainage easements" (also referred to herein as
"stormwater easements" or "stormwater drainage easements") that are shown on plats of the
Property recorded in the Registry or established by written instruments recorded in the Registry,
and which either are located on the Common Area or benefit or serve more than one (1) Lot; and
(ii) all stormwater management facilities for the Property including ponds, man-made or natural
areas and/or planted or landscaped areas into which stormwater drains, or in which stormwater is
collected, or from which it is discharged, drains, pipes, conduits, inlets, swales, creeks, streams,
channels, dams, ditches, filters, buffers, bio-retention areas, level spreaders, constructed
wetlands, and other equipment, facilities and stormwater management measures used for
inspecting, monitoring, measuring, testing, collecting, controlling, transporting, conveying,
handling, storing, discharging and/or managing stormwater. Except as otherwise provided
herein, Stormwater Facilities are part of the Common Area, and maintenance of Stormwater
Facilities is a Common Expense. References in the Declaration to stormwater management
include all applicable Stormwater Facilities, Stormwater Facility Agreements and Stormwater
Maintenance Manuals.
Stormwater Facility Agreements. "Stormwater Facility Agreements" (which term
includes any other agreement under Legal Requirements, by whatever name denominated
therein, relating to Stormwater Facilities) is defined as any agreement required by any Legal
Requirement between the County and the Declarant or between the County and the Association,
or among the County, Declarant and Association, or between or among any combination of the
County and the Declarant, the Association and one or more Owners, or between and among
Declarant and any adjoining landowner, relating to maintenance of Stormwater Facilities.
Stormwater Maintenance Manual. "Stormwater Maintenance Manual" (which term
includes any other instrument or document under Legal Requirements, by whatever name
denominated therein, addressing the same or similar matters) is defined as the specific
requirements for maintenance of Stormwater Facilities as required by the County.
Supplemental Declaration. "Supplemental Declaration" means a supplemental
declaration of covenants, conditions and restrictions which shall be recorded for the purposes of
annexing additional property, including all or any portion of the Additional Land, if any, to the
Property and causing such property to be subject to the scheme of covenants, conditions and
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restrictions
contained
in
this Declaration, and any additional
covenants, conditions and
restrictions
contained in
the
supplemental declaration of covenants,
conditions and
restrictions.
Voting Power. "Voting Power" means the total number of votes allocated to Members
whose membership at the time the determination of Voting Power is made has not been
suspended in accordance with the provisions of this Declaration or the Rules and Regulations.
Voting Power shall be computed by including all such Members whether or not such Members
are present in person or by proxy at a meeting. All voting specifications and requirements shall
apply to the entire Property.
ARTICLE 2
PROPERTY, SUBMISSION AND TERM
2.01. Property. The property subject to this Declaration and within the jurisdiction of
the Association is located in Union County, North Carolina, and is described more particularly
on Exhibit A attached hereto and incorporated herein by reference.
2.02. Submission. The Property shall be held, conveyed, hypothecated, encumbered,
sold, transferred, leased, rented, used, occupied and improved subject to each and all of the
limitations, covenants, conditions, restrictions, easements, liens, charges, assessments and
equitable servitudes set forth herein, all of which are declared to be (a) in furtherance of a
common scheme and general plan for the development, improvement and maintenance of the
Property and (b) for the purpose of enhancing, maintaining and protecting the value, desirability
and attractiveness of the Property. All of the limitations, covenants, conditions, restrictions,
easements, liens, charges, assessments and equitable servitudes set forth herein shall run with, be
binding upon and inure to the benefit of the Property, shall be binding on and inure to the benefit
of each and every Person having or acquiring any right, title or interest in the Property, shall be
binding upon and inure to the benefit of the successors in interest of such Persons, and shall inure
to the benefit of the Association, its successors and assigns.
2.03. Incorporation of Declaration Into Instruments. Any deed or other instrument by
which a Lot is conveyed shall be subject to the provisions of this Declaration and shall be
deemed to incorporate the provisions of this Declaration, as amended from time to time, whether
or not the deed makes reference hereto.
2.04. Teim. This Declaration shall remain in force until terminated by the affirmative
vote of ninety percent (90%) of the Voting Power of the Association.
ARTICLE 3
COMPLIANCE WITH MANAGEMENT DOCUMENTS
Compliance with Declaration and Other Documents. Each Owner, resident,
tenant or guest of a Lot shall comply with the provisions of this Declaration, the Bylaws, Rules
and Regulations duly adopted by the Association, decisions and resolutions of the Association
and its duly authorized representatives, all as may be amended from time to time, and failure to
comply with any such provisions, decisions or resolutions, shall be grounds for an action to
recover sums due for damages or for injunctive relief.
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3.02. Resolution of Conflicts Between Documents. Each Owner covenants and agrees
that the administration of the Property shall be in accordance with the provisions of this
Declaration, the Articles, the Bylaws and Rules and Regulations duly adopted by the
Association. If there are any matters of conflict or inconsistencies in the Bylaws, Articles and
this Declaration, then the provisions of this Declaration shall prevail. In the event that anything
shown on a Map for all or any portion of the Property is in any way inconsistent with provisions
of this Declaration, then the provisions of this Declaration shall prevail unless otherwise required
by law. If a dispute arises among Owners in regard to the administration of the Property, then
the provisions of this Declaration shall prevail.
ARTICLE 4
PROPERTY RIGHTS
4.01. Title to the Common Area. The Declarant hereby covenants for itself, its
successors and assigns, that it will convey fee simple title to the Common Area depicted on the
Maps of the Property to the Association in accordance with applicable Legal Requirements (to
the extent such Common Areas can be conveyed in fee simple), free and clear of all
encumbrances and liens, except those set forth in this Declaration and utility, greenway and
storm drainage easements and other matters of public record in the Registry. In the event a
conveyance of the Common Area in fee simple would result in an illegal subdivision, then such
Common Area as shown on a Map shall be deemed dedicated to the Association for the benefit
of the Association and for the common use and enjoyment of its Members. Following
conveyance of Common Area to the Association, Declarant shall be entitled to a proration credit
for all expenses of the Association incurred by Declarant (including insurance and real estate
taxes) which have not theretofore been reimbursed to Declarant. The Common Area shall be
conveyed without any express or implied warranties, which warranties are hereby expressly
disclaimed by Declarant. Upon dedication by map or conveyance in fee, maintenance of the
Common Area shall be the responsibility of the Association, including, but not limited to, the
maintenance of any Stormwater Facilities that are part of the Common Area. The maintenance
of the Stormwater Facilities, including the expansion of such facilities as required by the County
or otherwise, shall be performed to the standard required by the County or other applicable
governing body. Title to the Common Areas, including, without limitation, all private streets
shall be for the perpetual benefit of the Members, and private or public ownership for any
purpose other than for the benefit of the Members is prohibited.
4.02. Common Area Easements. Each Owner shall have a non exclusive perpetual
right and easement of use and enjoyment in and to the Common Area and of access to and from
such Owner's Lot over any streets, parking areas and walkways comprising a portion of the
Common Area (if any), which rights and easements shall be appurtenant to and shall pass with
the title to such Owner's Lot and subject to the following rights and restrictions:
(a) The right of the Association, after Notice and Opportunity for Hearing, to
limit the number of guests of an Owner, to charge reasonable fees with respect to the use
of Common Area facilities, if any, and to limit the use of said facilities to Owners who
occupy a residence in the Property. Common Area facilities may include private streets
and no fees, other than assessments, shall be charged for those facilities.
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(b) The right of the Association to suspend the right of an Owner or any
Person to use any Common Area facilities (except drainage rights and rights of access to
Lots) (i) for any period during which any fine against a Member or any assessment
against such Owner's Lot remains unpaid; and (ii) after Notice and Opportunity for
Hearing, for a period not to exceed thirty (30) days for any infraction of the Rules and
Regulations.
(c) The right of the Association, subject to the provisions of the Act (Section
3-112), to encumber or convey all or any part of the Common Area.
(d) The right of the Association to grant easements, leases, licenses and
concessions through or over the Common Areas.
(e) The right of the Association, subject to the provisions of the Act (Section
3-112), to borrow money to improve, repair, restore and reconstruct the Common Area
and to place liens on the Common Area and otherwise encumber the Common Area for
such purposes.
(f) The right of the Association to adopt Rules and Regulations governing use
and enjoyment of the Common Area and the Property.
(g) The rights of the Association and of Declarant to the use of easements for
ingress and egress over, in, to and throughout the Common Area.
(h) The rights of the Association and Declarant to establish public storm
drainage easements, sanitary sewer easements, and any and all other easements over the
Common Areas as shown on the Maps.
(i) The right of the Association or its representative to enter any Lot in the
case of any emergency threatening such Lot or any other Lot for the purpose of
remedying or abating the cause of such emergency. Such right of entry shall be
immediate.
(j) The right of Declarant, its successors and assigns to make any
improvements for any reason they deem proper upon the Common Areas, even after their
conveyance to the Association. Declarant hereby reserves an easement over the Common
Areas for the purpose of developing the remainder of the adjacent property owned by
Declarant. Although not limiting the scope of this easement, this easement shall include
the right of access at all times for its employees, agent, subcontractors, invitees, etc., over
the Common Areas and shall include the right to construct, maintain and dedicate any
additional drainage easements, general utility easements and any additional sanitary
sewer or water line easements across any of the Common Areas. This easement shall
terminate upon the completion of the development of the adjacent property owned by
Declarant or ten (10) years from the date hereof, whichever first occurs. Provided that
following construction, the Common Areas shall be restored to their former condition as
is practicable and in no event shall any security interest, including without limitation,
mechanics and materialmen liens, encumber the Common Areas because of the work
authorized herein.
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(k) The right of the Association to enter any Lot in order to perform any
maintenance, alteration, or repair required herein to be performed by the Association, and
the Owner of such Lot shall permit the Association or its representatives to enter for such
purpose at reasonable times and with reasonable advance notice (except with respect to
grass and landscaping maintenance if any which shall be performed, without notice, at
reasonable times as determined by the Association).
(1) The Association shall accept from Declarant any and all assignments of
Declarant rights and obligations under any part or all of the Declaration, any
Supplemental Declaration, Stormwater Facility Agreements, any easements, any
encroachment agreement with a governmental authority, or any other agreement with or
permit issued by a governmental authority, a utility provider, or any other Person, and
any document required to be executed with respect to the Property by a governmental
authority, including assumption of all Declarant or Association obligations which are
contained in such documents and agreements or which are incident to such assignments,
as they relate to any Common Area, architectural approvals or other functions or services
performed or provided by the Association.
4.03. Dele ag tion. Any Owner may delegate lus or her rights of use and enjoyment of
the Common Area and any facilities thereon to the members of his or her family or household
residing on his or her Lot and to his or her guests and invitees while in possession of his or her
Lot, subject, however, to reasonable restrictions imposed by the provisions of this Declaration,
the Bylaws and the Rules and Regulations. Subject to the provisions of Section 4.02 of this
Declaration, a tenant of an Owner, while residing on such Owner's Lot, shall be entitled to use
and enjoy the Common Area and any facilities thereon and to delegate rights of use and
enjoyment in the same manner as if such tenant were the Owner of such Lot. No such delegation
shall release an Owner from his or her obligations hereunder, including, without limitation, the
obligation to pay Annual Assessments and Special Assessments.
Upon request, each Owner or tenant shall notify the Secretary of the Association of the
names of all Persons to whom such Owner or tenant has delegated any rights of use and
enjoyment of the Common Area and the relationship that each such Person bears to such Owner
or tenant. Any delegated rights of use and enjoyment are subject to suspension to the same
extent as the rights of Owners.
4.04. Reciprocal Easements. There shall be reciprocal appurtenant easements between
each Lot and such portion or portions of the Common Area as may be adjacent thereto and
between adjacent Lots for the flow of rainwater from gutters and downspouts or the natural
sheetflow of rainwater, the repair of fences and similar improvements, lawn maintenance and
trash removal (including the transport of sanitary containers for pick up by the applicable
disposal service); provided, however, that no such easement shall unreasonably interfere with the
use and enjoyment of the Common Area or any adjacent Lot. If any Common Area or Lot
improvement encroaches upon a Lot because of the placement, construction, reconstruction,
repair, movement, settling or shifting of the improvements constructed by Declarant, or
reconstructed or repaired in accordance with the provisions of this Declaration, an easement for
the encroachment and for its maintenance shall exist. If any Lot encroaches upon the Common
Area as a result of construction, reconstruction, repair, shifting, settlement or movement of any
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portion of the Property, an easement for the encroachment and for its maintenance shall exist so
long as it remains.
4.05. Utility Easements. Any easements for installation, maintenance, use or repair of
public utilities or drainage or detention facilities which are dedicated on any Map of the
Property, reserved under any deed of any Lot, or created by Declarant in some other way shall be
kept free of buildings, and within such easements no structure, fence, planting or other
improvement shall be placed or permitted to remain which may damage or interfere with the
installation, maintenance, use or repair of such public utilities or drainage or detention facilities,
or which may damage, interfere, or change the direction or flow of drainage in the easements.
Notwithstanding anything contained herein to the contrary, any such easement dedicated on any
Map of the Property, reserved under any deed of any Lot, or created by Declarant in some other
way shall be maintained by the Owner(s) of any affected Lot(s) to the extent so encumbered by
said easement, including all storm drainage facilities located within any "P. S. D. E." (public
storm drainage easement) or "PDE" or "Private Drainage Easement" shown on the Map, except
as otherwise indicated by such Map or unless maintenance has been assumed by the Association
or any public utility or governmental entity having jurisdiction thereover. All such easements
described in this Section 4.05 at all times shall be accessible to Declarant until the Property is
completed and at all times shall be accessible to all Persons installing, repairing, using or
maintaining such utilities and drainage facilities.
All utility lines of every type, including but not limited to water, electricity, gas,
telephone, sewage and television cables, running from the main trunk line or service location to
any Lot must be underground. Until the date that is one (1) year after the Completion of Sales,
the Declarant reserves unto itself, its successors and assigns, a perpetual alienable easement and
right on, over and under the ground to erect, maintain and use water, irrigation, electric, gas,
telephone, sewage and television cables, and any other utility lines and conduits for the purpose
of bringing public or other services, at this time known or unknown, to the Property on, in, under
and over the private streets or roads and over any Lot, and over such areas as are so identified on
any Map of the Property or shown on any site plan or construction drawings for the Property on
file with and approved by the County. In addition, the Association may cut, in the above
described easements, as well as any where else as required, at its own expense, drainways for
surface water and/or to install underground storm drainage wherever and whenever such action is
required by applicable health, sanitation or other state or local authorities, or in order to maintain
reasonable standards of health, safety and appearance. In addition, along streets fronting
property lines, Declarant reserves the right to install, maintain and repair pedestrian paths, street
lights and/or street -side landscaping, which right shall automatically transfer to the Association
upon the Completion of Sales. Any easements first established on property not owned by the
Declarant must be consented to by the Owner of such property and evidenced on the Map or in
recorded instrument creating the easement.
The Declarant may, but shall not be required to, release any of the easements reserved
herein as to any Lot for which it deems such easement is unnecessary for the efficient
development and operation of the Property.
4.06. Tie In Easements. In connection with its development of the Property, Declarant
intends to install public road and public utility infrastructure and private stormwater
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infrastructure to serve the Property on a Phase by Phase basis in accordance with the
construction plans for such public and private infrastructure approved by the requisite
governmental authorities ("approved plans"). At such time as Declarant has completed the
installation of the public and private infrastructure for each such Phase, to the extent required by
the approved plans, Declarant shall have extended certain of such public and private
infrastructure to the edge of the property line between such Phase and the adjoining property and
shall have created tie in stubs allowing the owner of the adjoining property to tie in and connect
to the public and private infrastructure installed by Declarant. Such adjoining property owner(s)
shall have the right to tie in to such stubs and use the public and private infrastructure installed
by Declarant on the Property in accordance with the approved plans.
4.07. No Subdivision of Lots; No Time Sharing. Other than that effected by Declarant
in preparing and recording Maps, or in revising recorded Maps, there shall be no further
subdivision or partition of any Lot nor shall any Owner other than Declarant, or any other Person
acquiring any interest in a Lot seek any partition or subdivision thereof unless the Association
consents to such subdivision or partition as evidenced on a Map. There shall be no time sharing
or other co ownership which allows multiple Owners sequential possessory interests in a Lot.
4.08. Sale of Common Area. Except as otherwise provided in this Declaration and
except as provided in the Act, no sale, transfer, dedication, hypothecation, partition, subdivision,
abandonment, release or alienation of the Common Area shall, or may be, effected.
4.09. Limited Common Area. Certain portions of the Common Area maybe designated
as "Limited Common Area" and reserved for the exclusive use or primary benefit of Owners of
designated Lots and their invitees. By way of illustration and not limitation, Limited Common
Area may include entry features, recreational facilities, landscaped medians and cul-de-sacs,
roadways not necessary to provide other Lots with access to public streets, lakes, retaining walls
constructed by Declarant and all improvements within any private retaining wall easement
established on the Maps of the Property, and other portions of the Common Areas designated to
benefit particular Lots. All costs associated with maintenance, repair, replacement, and
insurance of a Limited Common Area shall be an expense allocated to the Owners to which the
Limited Common Area is assigned, which may be recovered by one or more Special
Assessments levied by the Board against the benefited Owners as provided herein. All retaining
walls constructed by Declarant within the Property and all improvements within any private
retaining wall easements established on Maps of the Property are hereby designated as Limited
Common Areas and assigned to the Owners of the Lots upon which such retaining walls have
been constructed. Any other Limited Common Area shall be designated as such and the
exclusive use thereof shall be assigned in the deed(s) by which the Declarant conveys the
Common Area to the Association and shown on a Map designating such Limited Common Area;
provided, any such assignment shall not be exclusive and shall not preclude the Declarant from
later assigning use of the same Limited Common Area to additional Lots. The Association may,
upon approval of the Owner(s) of the Lot(s) to which certain Limited Common Area is assigned,
permit Owners of other Lots and their invitees to use all or a portion of such Limited Common
Area upon payment of reasonable user fees, which fees shall be used to offset the Special
Assessments attributable to such Limited Common Area.
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4.10. Declarant's Right to Change Development Plans. With the approval of the
County, Declarant shall have the right, without consent or approval of the Owners, to create Lots
and dwelling units, add Common Area, change unit types and reallocate units within the
Property, and release or withdraw real property from the development. In addition, Declarant
shall have the right to change Common Area and Lots designations, the boundary lines of
Common Area and Lots and the location of easements shown on any Map by recording a new
Map showing such changes, which Map shall be executed by the Declarant and the Owner of the
Common Area or Lot so modified. To the fullest extent permitted by North Carolina law, each
Owner covenants by acceptance of the deed or instrument by which its Lot is conveyed not to
protest, challenge or otherwise object to (i) changes in uses or density of the Property or
Additional Land, or (ii) modifications to the boundary lines of the Common Area and Lots
and/or the location of easements shown on any Maps, or (iii) changes in the site plan and other
development documents filed with the County in connection with the Property or Additional
Land.
4.11. Rules and Regulations. The Association shall have the right to adopt, publish and
enforce Rules and Regulations governing the Property, the use and enjoyment of the Common
Area, and any facilities thereon, and the personal conduct thereon of the Owners or other
Persons, their guests, invitees, members of their families or households and tenants. Such Rules
and Regulations shall be reasonable, shall not discriminate against Declarant (or have an adverse
impact on Declarant or upon the sale of Lots or the construction of improvements thereon), and
must be consistent with this Declaration, the Articles and the Bylaws. Rules and Regulations
and any changes thereto shall be effective upon Board approval and shall be mailed or emailed to
each Owner addressed to the Owner's address last appearing in the books of the Association,
postage prepaid, within thirty (30) days of Board approval.
Enforcement. Unless otherwise limited by the terms and provisions of the Act,
the Association shall be authorized to impose sanctions for violations of this Declaration, the
Bylaws, or the Rules and Regulations. Sanctions may include reasonable monetary fines not to
exceed $100.00 for each day more than five days after decision that the violation occurs and
suspension of the right to vote and to use any facilities within the Common Area after Notice and
Opportunity for Hearing (excepting drainage rights and rights of access to Lots). In addition, the
Association, through the Board, after Notice and Opportunity for Hearing, shall have the right to
exercise self-help to cure violations, and shall be entitled to suspend any services provided by the
Association to any Owner or Lot in the event that such Owner is more than thirty (30) days
delinquent in paying any assessment or other charge due to the Association. The Board shall
have the power to seek relief in any court for violations of this Declaration, the Bylaws or the
Rules and Regulations or to abate nuisances.
ARTICLE 5
COMMON AREA EASEMENTS AND RIGHTS OF WAY; ENCUMBRANCES
5.01. Dedications. The Association by action of the Board shall have the power to
grant easements in, on, over, through and across the Common Area for any public or quasi public
improvements or facilities and their appurtenances, including, without limitation, street, sewer,
drainage, water, gas and sprinkler improvements and facilities, provided (a) any such easement
does not unreasonably interfere with the use and enjoyment of the Common Area or any Lot, and
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(b) the prior written consent of Declarant shall be obtained so long as Declarant owns any Lot.
Each Owner, by accepting a deed to a Lot, expressly grants to the Association an irrevocable
power of attorney for the purpose of granting such easements in, on, over, through and across the
Common Area. The President or other duly designated officer of the Association may execute,
acknowledge and record in the official records of the County a certificate stating that the Board
is the attorney in fact for the Owners for the purpose of such grant and that such power of
attorney is properly exercisable in accordance with this Declaration. The acts of the Board in
exercising its power of attorney shall be conclusively binding on all Owners. The power of
attorney herein granted shall include authority to do such acts incidental to such grant and to
incur such expenses as may be necessary or convenient in connection therewith. The Board, by
resolution, shall instruct the appropriate officers of the Association to make, execute and deliver
on behalf of any Owner, as his or her interest may appear, any and all instruments, certificates
and documents, including but not limited to, releases, waivers, deeds, escrow instructions and
conveyances of every kind and nature, as may be deemed necessary or convenient for such
dedication or grant.
5.02. Easements in Private Streets. Private Water Lines and Private Sewer Lines. In its
development of the Property, the Declarant may construct certain private streets, private water
lines and private sewer lines within the Property. The Owners of those Lots adjacent to such
private streets, private water lines and private sewer lines shall have an easement but no more
than an easement for ingress and egress for themselves, their tenants, agents, employees,
representatives, invitees and assigns over such private streets and an easement to utilize such
private water lines and private sewer lines. In no case shall the County or the State of North
Carolina be responsible for maintaining any private street, private water line or private sewer
line. Such maintenance obligations shall be the responsibility of the Association. The private
streets will be constructed to the minimum standards required by the North Carolina Department
of Transportation and the County, but the Owners acknowledge that due to the Security Gates the
streets are not currently (and may never be) eligible for acceptance for public maintenance by the
North Carolina Department of Transportation; rather all streets once completed by Declarant
shall be private streets maintained by the Association. If any private streets, private water lines
or private sewer lines encroach upon a Lot because of the placement, construction,
reconstruction, repair, movement, settling or shifting of the improvements constructed by
Declarant, or reconstructed or repaired in accordance with the provisions of this Declaration, an
easement for the encroachment and for its maintenance shall exist. Owners acknowledge that
private utility easements may not be shown on Maps of the Property and agree that to the extent
a private utility encroaches upon the Lots, such area is defined as Common Area hereunder and
the Association shall have the right to place, construct, reconstruct, move, maintain and repair
such private utilities. In no case shall the County be responsible for failing to provide any
emergency or regular fire, police, or other public service to the Property and the Owners when
such failure is due to lack of access to such areas within the Property due to inadequate design or
construction, blocking of access routes, inadequate maintenance or any other factor within the
control of the Declarant, Association or Owners.
5.03. Encumbrances. The Association shall have the right to borrow money to
improve, repair, restore and reconstruct the Common Area and to place liens on the Common
Area and otherwise encumber the Common Area for such purposes upon the vote or written
14
xaa un9oz �c

consent of
eighty
percent (80%) of the
Voting Power of the Association, or such lesser
percentage
as may
be required or permitted
by the Act.
ARTICLE 6
COMMON AREA AND LOT MAINTENANCE
6.01. Maintenance by Association. The Association shall repair and maintain the
Common Area and any improvements, utilities and facilities located on the Common Area. The
Association may, but shall not be obligated to, provide enhanced landscaping and maintenance to
those areas and medians located within the rights -of -way for streets located within the Property.
Any maintenance or enhancement called for herein shall be subject to the applicable
governmental authorities' rules and regulations.
The Declarant is responsible for the construction of sheets and roads within the Property
and shall construct all streets providing primary access to the Lots in accordance with the
minimum standards required by the North Carolina Department of Transportation. The streets
within Ladera are private streets and it is anticipated that the streets within Ladera will
always be private streets. Upon completion of the streets by Declarant, the Association shall
undertake the management, operation, maintenance, repair, servicing, replacement and renewal
of all private sheets and private utilities constituting Common Areas and all improvements
thereon. The Association shall be responsible for and maintain all streets and roads within the
Property until such roads are accepted for maintenance by the applicable governmental authority,
if ever, and the Owners acknowledge that due to the Security Gates the streets are not currently
(and may never be) eligible for acceptance for public maintenance by the North Carolina
Department of Transportation. Following any irrevocable acceptance of the streets and roads for
maintenance as public rights of way by applicable governmental entities, if ever, the Association
shall maintain such streets and roads to the extent such activities are not performed by the
applicable governmental entities. Maintenance for private streets, private water lines and private
sewer lines shall be the responsibility of the Association along with the maintenance of any
private easements.
6.02. Maintenance by Owners. Except as provided in Section 6.01, above, all repair,
maintenance and replacement of the improvements and utilities located upon an Owner's Lot,
including the sidewalk located within the right of way adjoining or adjacent to such
Owner's Lot, shall be the responsibility of the Owner thereof. Without limiting the generality
of the foregoing, and subject to the requirements of Article 7 and Section 10.06 and Section
13.06 of this Declaration, an Owner shall be responsible for replacement and reconstruction of
improvements on his or her Lot required because of damage or destruction by fire or other
casualty. It shall be the responsibility of each Owner to water the grass, plants, trees and
landscaping on or immediately adjacent to its Lot.
No building or other structure shall be placed or permitted to remain on any Lot which
may damage or interfere with the use, maintenance, repair or replacement of drainage facilities
on or serving the Lot and no Lot Owner shall do any work, construct any improvements, place
any landscaping or suffer the existence of any condition whatsoever which shall alter or interfere
with the drainage pattern for the Lots or Common Area as established in connection with the
approval of the Map(s) of the Property by the Town, except to the extent such alteration in
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drainage pattern is approved in writing by the Association and all public authorities having
jurisdiction. All such drainage facilities and appurtenances shall at all times be accessible to
Declarant until the Property is completed and at all times shall be accessible to the Association
and all persons installing, using, maintaining, repairing or replacing such drainage facilities and
appurtenances. Declarant may from time to time present for recordation in the official records of
the County instruments showing approximate locations of subsurface storm drainage facilities
and of subsurface groundwater drainage facilities. If for any reason any such instrument is not
accepted for recording, Declarant may deliver such instrument to the Association, and the
Association shall maintain the same as part of its permanent records. In either event, each Lot
Owner shall be deemed to have notice of the location of such drainage facilities as may be shown
in such instrument.
6.03. Ne lg_igence. The cost of repair or replacement of any improvement to be
maintained and kept in repair by the Association, which repair or replacement is required
because of the act or omission of any Owner, the Owner's family, guests, or invitees, shall be the
obligation of such Owner and shall be added to and become a part of the assessment to which
such Lot is subject.
6.04. Right to Enter. After reasonable notice to the occupant (except in the case of an
emergency in which no notice shall be required), the Association or its agents shall have access
over and upon any Lot when necessary in connection with any repair, maintenance, or
replacement of improvements for which the Association is responsible or for the enforcement of
this Declaration, and each Owner shall accept title to his or her Lot subject to such right of
access of the Association or its agents.
6.05. Easements for Governmental Access. An easement is hereby established over the
Common Area and every Lot for the benefit of applicable governmental agencies for installing,
removing, and reading water meters; maintaining and replacing water, sewer and drainage
facilities; and acting for other purposes consistent with public safety and welfare, including,
without limitation, law enforcement, fire protection, animal control, garbage collection, and the
delivery of mail.
6.06. Sign and Landscape Easement. Declarant, for itself, its successors and assigns,
including but not limited to the Association, hereby reserves easements over any portion of any
Lot designated as "Landscape Easement," "Sign Easement," "Landscape and Sign Easement" or
other similar designation on Map(s) of the Property recorded in the public records of the County,
for installation, construction, operation and maintenance of landscaping, berms, retaining walls,
drainage facilities, private utilities, lighting and sprinkler systems, if any, monuments, fencing,
signage and other improvements as installed by Declarant on such areas. No fences, structures,
driveways, plantings, swings or any other objects, temporary or permanent, shall be permitted in
such easements other than those initially installed by Declarant, or its designated successor,
without Declarant's prior written approval or, after all Lots are occupied by Owners, the
Association's prior written approval. The Association shall at all times have the right of access
for its employees, agents and subcontractors over the above -described easement areas for the
purpose of constructing, improving, repairing, replacing, landscaping, planting, mowing and
otherwise maintaining the area and amenities within such easements. The Owners of any Lot
containing any portion of these easements shall maintain the area not maintained or landscaped
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RA-3114902 v6

by the Declarant or the Association. The reservation of this easement imposes no obligation on
Declarant, its successors and assigns, or the Association, to continue to maintain the planting,
retaining walls, landscaping or other improvements located within the described easements.
6.07. Professional Management. In the event that Declarant or the Association enters
into any contract with any person or entity to provide management or maintenance services to
the Common Area, such contract shall not exceed one (1) year and shall provide that the
Association shall have the right to terminate the contract for cause or without cause upon thirty
(30) days' written notice without payment of a termination fee.
6.08. Security Gates. Declarant is responsible for the installation and the Association
shall maintain one or more security gates at the entrance(s) to the subdivision off of New Town
Road (S.R. #1315) (each a "Security Gate" and collectively, the "Security Gates"), which
Security Gates will be located on Common Area private streets. It is anticipated that there will
only be one entrance to the Property. Declarant and the Association hereby grant to all
applicable governmental authorities and their respective emergency personnel, the right, without
liability, to break any Security Gate if such emergency personnel reasonably believes that doing
so is necessary to save life, prevent serious bodily harm, put out a fire, prevent a crime,
apprehend an apparent law breaker or control a public catastrophe. The Association, Declarant,
and the Owners each agree to hold all applicable governmental authorities and their officers,
governing board members, and emergency personnel harmless from and against all damages and
losses, costs and liabilities incurred by it or them as a result of the breaking of any Security Gate
as provided for herein. All costs associated with the use and maintenance of the Security Gates,
including all costs associated with the security passes for each Owner to use the Security Gates,
shall be Common Expenses hereunder, except that the Association may levy reasonable charges
to duplicate a replacement key, fob or access card for an Owner.
ARTICLE 7
U5E RESTRICTIONS
In addition to the architectural control restrictions set forth in Article 13 below and in
addition to the use restrictions in the Rules and Regulations as promulgated by the Association
from time to time, the following use restrictions apply to the Property:
7.01. Residential Use. Except as otherwise provided in this Declaration, Lots shall be
used for residential purposes and for no other purpose. The Association shall not interfere with
any Owner's freedom to determine the composition of his/her household, except that it may
enforce reasonable occupancy limits. Except with respect to construction trailers or model
homes which may be used or occupied by Declarant, no Owner shall use or cause or permit to be
used his or her Lot for any business, commercial, manufacturing or mercantile use or purpose, or
for any other nonresidential use or purpose unless it is expressly permissible for Owners to
conduct certain business or commercial activities within their residence which do not conflict
with local zoning ordinance restrictions and regulations. No such activity shall be conducted
which shall unduly burden traffic flows within the Property or cause the parking of non-resident
vehicles upon the street for unreasonable or excessive periods of time. It shall be within the
17
RA3! 14902 v6

discretion of the Board to determine, on a case -by -case basis, which commercial and business
related activities will be compatible with the residential nature of the subdivision.
7.02. Unlawful Activity. No unlawful activity shall be conducted on any Lot or in any
other part of the Property. Nothing shall be done within the Property that is an unreasonable
annoyance, inconvenience or nuisance to the residents of the Property, or that unreasonably
interferes with the quiet enjoyment of occupants of Lots. No doorways, walkways or streets
shall be obstructed in any manner which would interfere with their use for ingress or egress in
the event of fire, earthquake or other emergency.
7.03. Property Owners Parking Rights. No vehicles of any type shall be parked on
the street rights of way within the Property, except as may be permitted by the Rules and
Regulations. To enhance the streetscape in the Property, it shall be required that each Owner
park its vehicles in the garage on the Lot whenever possible. All garages shall be used primarily
for the storage of vehicles. No vehicles of any type shall be parked or stored on any part of a Lot
other than in the garage or driveway of such Lot. No vehicles of any type shall be parked on the
sidewalk or grass on any Lot. No repairs to or maintenance of any automobile or other vehicle
shall be made or performed on any driveway within the Property, except in the case of
emergency and except as may be permitted by the Rules and Regulations. No vehicle of any
type which is abandoned or inoperative shall be stored or kept on any part of the Common Area
or on any Lot, and no automobiles or other mechanical equipment may be dismantled or parts
thereof stored on any said Lot.
An Owner, his household or tenants shall not park any vehicle in any undesignated
portion of the Common Area. Parking in any Common Area facility parking lot shall be limited
to the hours of operation of such facility. Owners shall be subject to sanctions if the parking
regulations are violated. Sanctions may include reasonable monetary fines not to exceed
$100.00 for each day more than five days after decision that the violation occurs and suspension
of the right to vote and to use any facilities within the Common Area after Notice and
Opportunity for Hearing (except drainage rights and rights of access to Lots). In addition, the
Association, through the Board, after notice to the Owner, shall have the right to exercise self-
help to cure violations, including the towing of vehicles at the Owner's expense. The Association
shall have the right to require the Owners to register the license plate number of any vehicle of
the Owner or any member of its household with the Association.
7.04. Signs and Curtains. No Owner shall place on or about any window any metallic
foil or other coating, substance or material which similarly acts as a reflector of light nor shall an
Owner place newspapers or bed sheets in any window. Except as otherwise required by the
County, no sign of any kind shall be displayed to the public view on any Lot other than one sign
of not more than nine (9) square feet advertising a Lot for sale and signs of not more than nine
(9) square feet expressing support of or opposition to political candidates or other issues which
will appear on the ballot of a primary, general or special election, provided that such political
signs shall not be placed on a Lot earlier than sixty (60) days before such election and shall be
removed within two (2) days after such election. No sign of any kind shall be displayed in or on
the Common Area without the prior written consent of the ACC. Notwithstanding the foregoing,
Declarant or its agents shall have the right to erect and maintain signs of any type and size on
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RA-3114902 vG

any Lot which it owns and on the Common Area in connection with the development and sale of
the Lots.
7.05. Antennas. As provided in Article 13, except for such as are covered by, and
installed in strict compliance with, the requirements of the Telecommunications Act of 1996, as
amended, no Owner shall construct, install, erect or maintain any outside television or radio pole
or receiving antenna, including a satellite dish antenna, and no outdoor television antenna or
satellite dish may be erected or installed by an Owner or permitted by an Owner to remain on his
or her Lot, without the express written approval of the Architectural Control Committee.
7.06. Laundry. No drying or airing of any clothing or bedding shall be permitted
outdoors on any Lot and no clothes hanging devices such as lines, reels, poles, frames, etc. shall
be stored or kept outdoors on any Lot.
7.07. Fences and Shrubbery. Except as may be constructed by Declarant, no fence or
wall shall be erected upon any Lot unless plans therefor have been approved, in advance, by the
Architectural Control Committee pursuant to the provisions of Article 13. Chain link fencing is
expressly prohibited. No hedge, shrubbery, or other planting, nor other plant screening shall be
installed on any Lot except with the prior written permission of the Architectural Control
Committee.
7.08. Pets.
(a) No animals shall be raised, bred or kept on any Lot or the Common Area,
except that dogs, cats, or other household pets may be kept or maintained provided that
they are not kept or maintained for commercial purposes. The number of household pets
generally considered to be outdoor pets, such as dogs, cats, et cetera, shall not exceed a
total of three (3) in number except for newborn offspring of such household pets which
are under nine (9) months of age.
(b) The Board may adopt Rules and Regulations concerning animals which
are more restrictive than the provisions of this Declaration, including (if not already
mandated by applicable laws of the County) rules requiring that all animals be kept on a
leash when in the Common Area and/or that animals be restricted to designated areas
within the Common Area. The Board may adopt a rule prohibiting certain pets, which is
more restrictive than the provisions of this Declaration, except that such rule shall not
apply to animals residing in the Property at the time such rule is adopted.
7.09. Trash and Vegetation, No trash, rubbish, garbage or other waste material shall be
kept or permitted upon any Lot or the Common Area, except in sanitary containers located in a
garage or, if there is no garage, in an appropriate area screened and concealed from view (except
for the periods immediately preceding and subsequent to pick up by the applicable disposal
service). No weeds, vegetation, rubbish, debris, garbage, waste materials or materials of any
kind whatsoever shall be placed or permitted to accumulate on any Lot or any portion of the
Property which would render it unsanitary, unsightly, offensive, or detrimental to any property in
the vicinity thereof or to the occupants of any property in such vicinity, except as is temporary
and incidental to the bona fide improvement of any portion of the Property. Job site debris shall
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be removed from all Lots at least weekly. Grass, hedges, shrubs, vines and mass planting of any
type on any Lot or any portion of the Property shall be kept trimmed and shall at regular intervals
be mowed, trimmed and cut so as to appear neat and attractive. It shall be each Owner's
responsibility to water the lawn and the plants on its Lot at regular intervals. Trees, shrubs, vines
and plants which die shall be promptly removed. No leaves, trash, garbage or other similar
debris, shall be burned except as permitted by the appropriate governmental authority.
7.10, Nuisance. No noxious or offensive activity shall be carried on in or upon any part
of the Property nor shall anything be done thereon which may be or become an unreasonable
annoyance, inconvenience or nuisance to the residents of the Property or unreasonably interfere
with the quiet enjoyment of occupants of Lots. No Owner shall permit anything to be done or
kept on his or her Lot which would result in the cancellation of insurance on said Lot or any
other residence or any part of the Common Area or which would be in violation of any law.
7.11. Outbuildings, Yard Art, Gazebo, Trampolines, Awnings, Freestanding Flagpoles
and Above -Ground Pools. Except as may be permitted by the Architectural Control Committee,
no Owner shall construct, install, erect or maintain upon any Lot any outbuilding, yard art,
storage shed (unless erected by Declarant), gazebo, trampoline, awning or freestanding flagpole
(provided, flags may be displayed using a bracket or other approved device mounted to a
dwelling so long as the size of the flag displayed does not exceed a standard size as same may be
determined by the Architectural Control Committee). In no event shall any outbuilding, storage
shed, gazebo, trampoline or play equipment be constructed on any Lot in the front or side yards,
as determined by the building lines applicable to the Lot. No above -ground pools (except for
wading pools no deeper than 2 feet tall and no wider than 10 feet in diameter, which shall be
regulated by the Architectural Control Committee) shall be allowed or approved by the
Architectural Control Committee on any Lot. Wading pools shall only be allowed during
appropriate weather and must be emptied and stored when not in use.
7.12. Temporary Structures. No temporary structures shall be placed upon any portion
of the Property at any time; provided, however, this restriction shall not prohibit construction
trailers or shelters or sheds used by Declarant or any builder or its contractors during the
development of the Property or the construction of improvements or additions to any Lot. Tents
(except tents as used temporarily for recreation), recreational vehicles, trailers (whether attached
or unattached to the realty) may not, at any time, be used as a temporary or permanent residence
or be permitted to remain on any portion of the Property.
7.13. ACC Approval of Plans and Other Prohibitions.
(a) The construction of improvements on Lots shall be completed pursuant to
the Plans in accordance with Article 13. In addition, Lots shall comply with all
applicable building, plumbing, electrical and other codes.
(b) All interior window treatments must be in keeping with the overall scheme
and aesthetic of the Property. Any window treatments deemed not to be in keeping with
the overall scheme and aesthetic of the Property shall be removed by the Owner in the
discretion and at the direction of the ACC. Sheets and towels may not be used as window
treatments.
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RA-3114902 v6

(c) No vents, pipes or other appendages may extend from the front of any
dwelling on a Lot, unless screened from public view by screening material or shrubbery
approved by the ACC.
(d) Any exterior air-conditioning or heating equipment added after the
completion of construction must be approved by the ACC and be screened Rom public
view by screening material or shrubbery approved by the ACC.
(e) Downspouts and gutters shall be constructed so as not to promote the
erosion of the soil of any Lot.
(1) Exterior lighting shall be shielded and must be directed so as not to shine
directly on another Lot.
(g) No yard art (including, without limitation, any windmills, figurines, or
sculptures) may be installed on a Lot unless approved by the ACC.
7.14. Trees and Foliage. Trees measuring two (2) inches or more in diameter at a point
two (2) feet above ground level and any flowering trees or shrubs above two (2) feet in height
may not be removed from the Property without the prior written approval of the ACC, unless
such landscaping material is in the path of driveways and walkways located or to be located on
any Lot. Excepted herefrom shall be damaged or diseased trees that threaten persons or
property, which damaged or diseased trees shall be removed by the Owner.
7.15. Discharge of Firearms. Hunting and trapping of wild animals, fowl and game and
the discharge of firearms (including pellet guns and BB guns) and/or bows and arrows within the
Property is prohibited.
7.16. Motorized Vehicles. All motorized vehicles operating within the Property must
be properly muffled so as to eliminate noise which might be offensive to others. All motorized
vehicles and motorized bicycles are prohibited from being used or operated anywhere other than
on the streets, roads, parking lots and driveways within the Property.
7.17. Built Upon Area and Impervious Surface Restrictions. The maximum allowable
built upon area per Lot will be reflected on the Mans (or revision Maps) of the Property.
This allotted amount includes any built upon area constructed within the property
boundaries of each Lot and that portion of the right of way between the front lot line and
the edge of the payment (but specifically excluding the four (4) foot wide sidewalk along the
right of way). Built upon area includes, but is not limited to, structures, asphalt, concrete,
gravel, brick, stone, slate, coquina and parking areas. Built upon area does not include
raised, open wood decking or the water surface of swimming pools. Each Owner must
confirm such restrictions before commencing any additional improvements to its Lot as
these restrictions may prohibit, among other things, the addition or expansion of the home,
sidewalk, out building or driveway.
7.18. Underground Storage Tanks. No underground storage tanks for natural gas,
gasoline, propane, chemicals, petroleum products or any other toxic product will be allowed
anywhere in the Property.
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RA-3114902 vG

7.19. Declarant's Rights. Notwithstanding anything to the contrary contained in this
Article or elsewhere in this Declaration, Declarant, its agents, employees and contractors shall
not be restricted or prevented by this Declaration from doing, and Declarant, its agents,
employees and contractors shall have the right to do such things or take such actions as they
deem necessary, advisable or convenient for completion and improvement of the Property as a
residential community and for the sale, rental or other disposition of Lots in the Property. The
rights of Declarant, its agents, employees and contractors shall include, without limitation:
(a) The right and easement of ingress in, over and upon the Common Area
and any Lot for the purpose of performing on any part or parts of the Property acts
deemed necessary, advisable or convenient for the completion and improvement of the
Property as a residential community and for the sale, rental or other disposition of Lots;
(b) The right to erect, construct, maintain, demolish or remove structures and
other improvements on any Common Area as they deem necessary, advisable or
convenient for the completion and improvement of the Property as a residential
community and for the sale, rental or other disposition of Lots; and
(c) The right to use Lots and improvements owned by Declarant as models,
sales offices and contractor's offices and to construct and display promotional,
informational and directional signs and other sales aids on or about any portion of the
Property.
The rights reserved under this Section shall terminate one (1) year after the Completion
of Sales. Amendment of this Section shall require the vote or written consent of seventy five
percent (75%) of the Voting Power of the Association. Further, no amendment of this Section
can be made without the written approval of Declarant.
7.20. Right to Enter. Any govermnental agency, including, but not limited to the
County, its agents and employees, shall have the right of immediate access to any Lot and to the
Common Area at all times if necessary for the preservation of public health, safety and welfare.
7.21. Tree Conservation. The Association hereby reserves a conservation easement
for the planting of trees and for the protection, preservation, and maintenance of the bees
situated within any tree conservation areas shown on any recorded Map of the Property. No tree
disturbing activity shall be permitted in tree conservation areas in violation of the County Code.
Any tree disturbing activity undertaken in tree conservation areas or in undisturbed open space
areas (and similarly designated areas for tree preservation subject to tree coverage requirements)
shown on recorded Maps of the Property without a permit from the County or otherwise in
violation of the County Code is a violation of the County Code and may result in significant
financial consequences to the Owner and/or to the Person responsible for such tree disturbing
activity. Owners and their agents may, however, with the consent of both the County and of the
Association, enter tree conservation areas to perform active tree protection measures (as defined
in the County Code), to plant trees, to remove dead or diseased trees, or to plant replacement
trees, provided, however, unless otherwise required by other provisions of this Declaration, the
consent of the Association shall not be required if the tree conservation area in which the Owner
22
R43114902 v6

desires to perform active tree protection measures or plant trees, remove dead or diseased trees
and to plant replacement trees is located on that Owner's Lot,
7.22. Cluster Mailboxes. Declarant shall install one (1) or more cluster mailboxes with a mail
box assigned to each Lot. The Association shall be responsible for the maintenance and repair of the
cluster mailboxes and the costs of such maintenance and repair shall be a Common Expense. Declarant
reserves the right to install such cluster mailboxes on one (1) or more of the Lots or other portion of the
Property and hereby reserves a Common Area easement across any such Lots upon which such cluster
mailboxes are installed for the repair and maintenance of the cluster mailboxes as required hereunder. If
any cluster mailboxes are installed upon a Lot, a Common Area easement for such improvements and for
the repair and maintenance for such improvements shall exist.
ARTICLE 8
P AND VOTING RIGHTS
8.01. Governing Body. The Association shall be the governing body for all Owners
with respect to the management, administration, maintenance, repair and replacement of the
Property, as provided by this Declaration and the Bylaws.
8.02. Membershin. Membership in the Association shall be composed of and limited to
Owners. Each Owner, including Declarant, shall automatically be a Member of the Association
and entitled to vote as set forth below. Membership shall be appurtenant to and may not be
separated from ownership of a Lot. Upon termination of ownership, an Owner's membership
shall automatically terminate and be automatically transferred to the new Owner of the Lot.
8.03. Voting. The Association shall have two classes of voting membership:
Class A. Class A Members shall be all Owners with the exception of Declarant;
provided, however, that Declarant shall become a Class A Member when its Class
B membership ceases as provided hereinafter. Class A Members shall be entitled
to one (1) vote for each Lot owned. When more than one person holds an
ownership interest in any Lot, all such persons shall be Members, but no more
than one vote shall be cast with respect to any Lot. The vote for any such Lot
shall be exercised as the Members holding an interest in such Lot determine
among themselves. In the event of disagreement, the decision of Members
holding a majority of interest in such Lot shall govern. Unless otherwise notified
by a co owner as to a dispute between the co owners regarding their vote prior to
the casting of that vote, the vote of any co owner shall be conclusively presumed
to be the majority vote of the Owners of that Lot.
Class B. Class B Member shall be Declarant which shall be entitled to ten (10)
votes for each Lot owned and each Lot planned for development as shown on any
preliminary subdivision plans approved by the requisite governmental authorities;
provided that Declarant's Class B membership shall cease and be converted to
Class A membership on the happening of either of the following events,
whichever occurs earlier: (a) the Completion of Sales; or (b) ten (10) years after
the first Lot is conveyed to an Owner for use as a residence.
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8.04. Commencement of Voting Rights. Voting rights attributable to an ownership
interest shall not vest until the Annual Assessment against that interest has been levied by the
Association as provided in Article 9; provided, however, that voting rights shall be immediately
vested with respect to the approval of any amendments to this Declaration.
8.05.
Declarant's
Voting
Rights.
Declarant shall
have the right to cast votes
attributable to
Lots owned
by Declarant
on all
matters submitted
to a vote of the Members.
8.06. Control by Declarant. Notwithstanding any other language or provision to the
contrary in this Declaration, in the Articles, or in the Bylaws, Declarant hereby retains the right
to appoint and remove any person, whether or not an Owner, on the Board of Directors of the
Association and any officer or officers of the Association until ninety (90) days after the first of
the events to transpire outlined in Section 8.03 above concerning the termination of the Class B
Member status of Declarant or the surrender by Declarant of the authority to appoint and remove
directors and officers by an express document relinquishing such rights executed and recorded
by Declarant. Upon the expiration of the period of Declarant's right to appoint and remove
directors and officers of the Association pursuant to the provisions of this Section, such right
shall automatically pass to the Owners, including Declarant if it then owns one or more Lots; and
a special meeting of the Association shall be called for and held within ninety (90) days from the
date of the expiration of Declarant's rights hereunder. At such special meeting the Owners shall
elect a new Board of Directors which shall undertake the responsibilities of running the
Association and Declarant shall deliver the books, accounts, and records, if any, which they have
kept on behalf of the Association as well as any agreements or contracts executed by or on behalf
of the Association which may still be in effect or operation, which contracts and agreements, to
the extent they are not bona fide or are unconscionable, may be terminated by the new Board of
Directors upon not less than ninety (90) days notice to the other party in accordance with Section
47F-3-105 of the Act. Each Owner by acceptance of a deed to or other conveyance of a Lot
vests in Declarant such authority to appoint and remove directors and officers of the Association
as provided in this Section.
ARTICLE 9
COVENANTS FOR ASSESSMENTS
9.01. Covenant to Pay Assessments; Lien. Every Owner of a Lot by acceptance of a
deed therefor, whether or not it shall be so expressed in such deed, covenants and agrees to pay,
to the Association such Annual Assessments or charges, and such Special Assessments or
charges, as may be levied by the Association pursuant to the provisions of this Declaration. The
amount of any such annual or special assessment plus any other charges thereon, such as interest,
late charges and costs (including attorneys' fees), as such may be provided in this Declaration or
the Act, shall be and become a lien upon the Lot assessed as provided in §47F-3-116 of the Act
when such annual or special assessment remains unpaid for a period of thirty (30) days or longer
and the Association causes to be recorded in the office of the clerk of superior court in the
County a claim of lien, which claim shall state:
(a) The amount of such assessment and such other charges thereon as may be
authorized by this Declaration and the Act;
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RA3 i 14902 vG

(b) A description of the Lot against which the same has been assessed; and
(c) The name of the record owner of the Lot assessed.
Upon payment of such assessment and charges in connection with which such notice has
been so recorded, or other satisfaction thereof, the Association, at the Owner's cost and expense,
shall cause to be _recorded a cancellation of claim of lien stating the satisfaction and the release of
the lien thereof. The lien shall have priority over all liens or claims created subsequent to the
recordation of the claim of lien except for (i) tax liens for real Property taxes on the Lot, (ii)
assessments on any Lot in favor of any municipal or other governmental body and (iii) the lien of
any Mortgage or the lien of any other encumbrance recorded before the docketing of the claim of
lien in the office of the clerk of court. The lien may be enforced by foreclosure in accordance
with North Carolina law, or in any other manner permitted under the Act or by law. The
Association shall have power to purchase the Lot at a foreclosure sale and to hold, lease,
mortgage and convey the same. Before filing a claim of lien against any Lot, the Association
shall make reasonable and diligent efforts to ensure that its records contain the Owner's current
mailing address and make a written demand to the defaulting Owner for payment of the
delinquent Assessments together with late charges, interest, reasonable collection costs and
reasonable attorneys' fees, if any. The Owner shall be notified in writing of the Association's
intent to seek payment of attorneys' fees and court costs in accordance with §47F-3-116(el) of
the Act.
The claim of lien shall be subordinate to the lien of any first mortgage or the lien of any
other encumbrance recorded before the docketing of the claim of lien in the office of the clerk of
court. The sale or transfer of any Lot shall not affect the lien except that the sale or transfer of a
Lot pursuant to judicial or nonjudicial foreclosure of a first mortgage or any bona fide, good faith
proceeding in lieu thereof shall extinguish the lien as to payments which became due prior to the
sale or transfer. Such unpaid Assessments shall be deemed Common Expenses collectible from
all Owners, including the purchaser at foreclosure. In addition, no sale or transfer shall relieve
the Lot from liability for any Assessments thereafter becoming due or from the lien thereof.
9.02. Personal Obligation. Each Annual Assessment or Special Assessment, together
with any late charges, interest, collection costs and reasonable attorneys' fees, shall be the
personal obligation of each person or entity, other than any Mortgagee, who held an ownership
interest in the Lot at the time such assessment was levied. If more than one Person held an
ownership interest in the Lot at such time, the personal obligation to pay such assessment or
installment respecting such Lot shall be both joint and several. No Owner may exempt himself
or herself from payment of assessments, or installments, by waiver of the use or non use of
common facilities within the area or of any other portion of the Common Area or by
abandonment or leasing of his or her Lot.
9.03. Use of Assessments. Annual Assessments or Special Assessments paid by
Declarant and other Owners shall be used to pay the Common Expenses of the Association.
9.04. Reserve Funds. The Board shall establish and maintain reserves in accordance
with standard accounting practices and procedures for Common Area replacements and
maintenance and the initial budget of the Association. Each budget subsequently adopted by the
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RA-3114902 vb

Board shall provide for funds to be placed in reserves in the discretion of the Board unless a
different level of reserves is approved by the vote or written consent of a majority of the Voting
Power of the Association. Funds deposited in reserve for a particular purpose shall be held for
that purpose and shall not be expended for any other purpose without the vote or written consent
of a majority of the Voting Power of the Association, except that if the Board determines that
funds held in reserve for a particular purpose exceed an amount reasonably required as a prudent
reserve for that purpose, then, without the vote or written consent of Members, the excess may
be allocated to any other reserve fund established by the initial budget of the Association and
expended for the purpose for which such other reserve fund has been established.
9.05. Annual Assessments.
(a) The Annual Assessment for each Lot owned by a Class A Member for the
first assessment year shall be a maximum of $1,300.00; provided, however, that if the
first assessment year shall have fewer than twelve months, the foregoing amounts shall be
proportionately reduced. The Annual Assessment for each Lot owned by a Class B
Member shall be zero; provided, however, Declarant shall be obligated to fund any
budget deficit pursuant to Section 9.12. The Board shall adopt a proposed budget and fix
the amount of the Annual Assessment as to each Lot for each subsequent calendar year at
least thirty (30) days prior to January 1 of such calendar year. The Association shall send
written notice of the amount of the Annual Assessment, and a summary of the proposed
budget, as well as the amount of the payment due, to each Owner within thirty (30) days
after the adoption by the Board of such budget. To the extent required by North Carolina
General Statutes 4717-3403(c) or other applicable law, such notice shall include notice of
a meeting of the Members to consider ratification of the budget, including a statement
that the budget may be ratified without a quorum. If such a meeting is required by N.C.
General Statutes 4717-3403(c), or other applicable law, the Board shall set a date for a
meeting of the Members to consider ratification of the budget to be held not less than ten
(10) nor more than sixty (60) days after mailing of the summary and notice. If such
meeting is required as set forth above, there shall be no requirement that a quorum be
present at the meeting. If the proposed budgets to be ratified at any such meeting is
within the maximum increase limits set forth in subsection (b) below, the budget shall be
deemed ratified unless at such meeting Members exercising all of the Voting Power in
the Association reject the budget. If the proposed budget to be voted on at any such
meeting exceeds the maximum increase limits set forth in subsection (b) below, the
budget is ratified unless at such meeting Members exercising a majority of the Voting
Power in the Association reject the budget. The failure of the Association to send, or of a
Member to receive, such notice shall not relieve any Member of the obligation to pay
Annual Assessments.
(b) From and after the first year of Annual Assessments, the Board, by a vote
in accordance with the Bylaws, without a vote of the Members (unless required under
N.C. General Statutes 47F-3-103(c) or other applicable law, in which case the procedures
set forth in subsection [a] above shall apply), may increase the Annual Assessment each
year by a maximum amount equal to the previous year's Annual Assessment times ten
percent (10%).
26
RA-3I 14902 vG

(c) From and after the first year of Annual Assessments, the maximum
Annual Assessment may be increased above the maximum amount set forth above by a
vote of a majority of the Voting Power, plus the written consent of Declarant (so long as
Declarant owns any part of the Property).
(d) The Board may fix the Annual Assessment at an amount not in excess of
the maximum set forth above (the "Maximum Annual Assessment"), subject to the
procedures set forth in subsection (a) above if applicable. If the Board shall levy less
than the Maximum Annual Assessment for any calendar year and thereafter, during such
calendar year, determine that the important and essential functions of the Association
cannot be funded by such lesser assessment, the Board may, by vote in accordance with
the Bylaws, levy a supplemental Annual Assessment ("Supplemental Annual
Assessment"), subject to the procedures set forth in subsection (a) above, if applicable.
In no event shall the sum of the Annual Assessments and Supplemental Annual
Assessments for any year exceed the applicable Maximum Annual Assessment for such
year other than as set forth herein.
9.06. Special Assessments. In addition to the Annual Assessment authorized herein,
the Board may levy, in any assessment year, special assessments as follows:
Common Area. In addition to the Annual Assessments authorized herein, the
Board may levy, in any assessment year, a special assessment against all Owners
applicable to that year only for the purpose of defraying in whole or in part the cost of
any construction, reconstruction, repair or replacement of capital improvements and
related fixtures and personal property on or comprising a part of the Common Area;
including, without limitation, any stormwater detention or retention facility located on the
Common Area; provided, however, any such assessment shall be in the ratio of ten (10)
to one (1) for Lots owned by Class A Members and Class B Members, respectively, as
provided in Section 9.08 below and further provided in any fiscal year Special
Assessments which exceed ten percent (10%) of the budgeted gross expenses of the
Association for that fiscal year may not be levied without the vote or written consent of
sixty-seven percent (67%) of the Voting Power of the Association.
9.07. Assessment as Remedy. After Notice and Opportunity for Hearing, the Board,
without the vote or written consent of Members, may levy a Special Assessment against an
Owner as a remedy to reimburse the Association for costs (including attorneys' fees) incurred in
bringing the Owner, his or her Lot or his or her residence into compliance with the provisions of
this Declaration, the Bylaws or the Rules and Regulations.
9.08. Allocation of Assessments. All Annual Assessments and Special Assessments
shall be levied equally against all Owners, except:
(a)
Annual Assessments levied on Lots owned by a Class A Member shall
be
a maximum of $1,300.00 per
annum for the first assessment year as adjusted
for
subsequent
years in accordance
with Section 9.05, and Annual
Assessments levied
on
27
RA31 I4902 vG

Lots owned
by a
Class B Member
shall be
zero; provided,
however, Declarant shall be
obligated to
fund
any budget deficit
pursuant
to Section 9.12;
and
(b) Special Assessments shall be in the ratio of ten (10) to one (1) for Lots
owned by Class A Members and Class B Members, respectively.
9.09. Commencement of Assessments; Time of Payment. The Annual Assessments
provided for herein shall commence as to all Lots in Ladera on the first day of the month next
following the conveyance of the first Lot improved with a dwelling to a purchaser (other than a
successor Declarant) for use as a residence. The first assessment year shall be the period
commencing on the date Annual Assessments commence and ending on the December 31 next
following. The Annual Assessment for the first assessment year shall be prorated from the
amounts fixed by the Board for a full twelve month year, based on the number of months to be
contained in the first assessment year. Subsequent assessment years shall be each successive
calendar year; provided, however, that at any time the Board may change the assessment year to
correspond to a fiscal year selected by the Board. Assessments of Lots within each Phase of the
Property which is annexed in accordance with the provisions of Article 15 below shall
commence on the first day of the month next following the conveyance of the first Lot improved
with a dwelling to a purchaser (other than a successor Declarant) for use as a residence.
Owners shall pay assessments in the manner and on the dates the Board establishes. The
Board may require advance payment of assessments at closing of the transfer of title to a Lot and
may impose special requirements for Owners with a history of delinquent payment. If the Board
so elects, assessments may be paid in annual, semiannual, quarterly or monthly installments.
Unless the Board otherwise provides, the Annual Assessment shall be due and payable in four
(4) quarterly installments. If any Owner is delinquent in paying any assessments or other
charges levied on his Lot, the Board may require that the outstanding balance on all assessments
be paid in full immediately.
9.10. Revised Assessments. Subject to the provisions of Section 9.05, if at any time
during the course of any year the Board shall deem the amount of the Annual Assessment to be
inadequate or over adequate by reason of a revision of its estimate of either expenses or income
or otherwise, the Board shall have the right, at a regular or special meeting, to revise the Annual
Assessment for the balance of the assessment year. Any such revised assessment shall become
effective on the first day of the month next following the date of adoption, and additional
amounts payable shall be due (or refunds of overages shall be made by the Association) at such
time as determined by the Board.
9.11. Delinquent Assessments; Fines. Any assessment not paid within thirty (30) days
after the due date shall be delinquent. The Board may require that any delinquent assessment
bear a late charge to cover administrative expenses incurred as a result of the late payment of the
assessment. Late charges on delinquent assessments and fines levied as provided in Section 4.12
may be imposed in an amount not to exceed the greater of (i) ten percent (10%) of the amount of
the unpaid Assessment, or (ii) twenty dollars ($20.00) per month. The Association may bring a
legal action against the Owner personally obligated to pay a delinquent assessment or fine and,
after Notice and Opportunity for Hearing, the Association may suspend a delinquent Owner's
membership rights in the Association (except drainage rights and rights of access to Lots) while
28
RA3 (14902 vb

the assessment or fine remains unpaid.
In
any legal action
to enforce payment
of an assessment
or fine, the Association shall
be entitled
to
recover interest,
costs and reasonable
attorneys' fees.
9.12. Declarant's Obligation to Fund Budget Deficits. Declarant shall satisfy all
obligations for Annual Assessments on Lots which it owns by funding the budget deficit during
the period of Declarant control described in Section 8.06. The budget deficit is the difference
between the amount of Annual Assessments levied on Class A Member -owned Lots, plus any
other income received during the calendar year, and the amount of the Association's actual
expenditures during the calendar year, including reserve contributions. Upon the expiration of
the period of Declarant control, in the event a deficit results, the Association, and not Declarant,
shall be responsible for such deficit and its funding.
Declarant may fund the deficit in the form of cash or by "in kind" contributions of
services or materials, or by a combination of these. Said "in kind" contracts or arrangements
may be terminated upon ninety (90) days notice by the Association at any time after the
termination of the Declarant control period as described in Section 8.06.
Declarant's obligation to fund the budget deficit during the period of Declarant control,
together with interest thereon and costs of collections, including, but not limited to, reasonable
attorneys' fees, are hereby declared to be a charge and continuing lien upon each Lot owned by
Declarant. Said lien shall be effective only if its obligation remains unpaid for a period of thirty
(30) days or longer and from and after the time of the recordation in the official records of the
County of a notice of assessment in accordance with Section 9.1. Upon full payment of all sums
secured by any such lien, Declarant shall be entitled to a satisfaction of the notice of assessment
in recordable form in accordance with Section 9.1.
9.13. Onerating_Expense Contribution. Notwithstanding any provision contained
herein or in any other document or instrument to the contrary, every Owner (other than a
successor Declarant) who purchases a Lot from Declarant shall pay to the Association at the time
of the closing of such purchase a non-refundable operating contribution fee in the amount of
$1,300.00, which amount shall be paid to the Association as a contribution towards operating
expenses and/or for the maintenance, repair, construction and replacement of capital assets and
improvements to the Common Area and the Property. It is expressly provided herein that such
operating contributions shall not be held for the benefit of the Owner paying such amount at
closing, shall not be required to be held in an interest bearing account, and may be commingled
by the Association with its other funds, and shall not reduce an Owner's obligation to pay
Annual Assessments or Special Assessments. The Board may adjust the amount of the operating
contribution fees from time to time.
9.14. Reserves for Stormwater Repair and Reconstruction. The budget of the
Association shall at all times contain a line item for routine maintenance of any Stormwater
detention or retention facility located on the Common Area and a separate line for the repair and
reconstruction of such Stormwater Facilities.
9.15. Certification of Assessments. The Association, upon written request, shall
furnish to a Owner of a Lot or the Lot Owner's authorized agents a statement setting forth the
amount of unpaid assessments and other charges against such Lot. The statement shall be
29
AA-3114902 v6

furnished within ten (10) business days after receipt of the request and is binding on the
Association, the Board, and every Owner of a Lot. The Association may charge a reasonable fee
for providing such statement.
Yalu. Exempt Property. "Exempt Property" is defined as all portions of the Property
included within any of the following categories:
(1) Common Area;
(2) Portions of the Property owned by, or dedicated, conveyed, or granted to
and accepted by, the County or a utility for a public purpose or in connection with the provision
of utility services, including property within the right-of-way of publicly -dedicated streets and
roads; and
(3) A portion of the Property that is used for public education and instruction
and owned by a charitable or nonprofit organization exempt from taxation by the laws of the
State of North Carolina or any other governmental entity or agency.
Except as otherwise provided in this paragraph, Exempt Property shall not be subject to
the assessments under the Declaration. Provided, however: (i) Exempt Property under the
foregoing subsection (2) on which a dwelling unit is located is subject to the assessments under
the Declaration; (ii) Exempt Property under the foregoing subsection (3) on which a dwelling
unit is located is subject to the assessments under the Declaration; or (iii) unless a portion of the
Property otherwise qualifies as Exempt Property, a Lot on which an easement dedicated, granted,
or conveyed to the County or a utility is located, is not exempt from assessments. The Owner of
any Exempt Property that is not subject to assessments shall have no membership or voting
rights in the Association associated with the ownership of such Exempt Property.
Unless and until such time, if any, as it loses its exempt status, all Exempt Property
owned by, or subject to an easement to, the County or a utility provider, including all Exempt
Property within publicly -dedicated street rights -of -way, and all Exempt Property owned by a
charitable or nonprofit organization exempt from taxation by the laws of the State of North
Carolina and used for public education and instruction are exempt from all of the provisions of
the Declaration, except for any easements over such Exempt Property reserved in the Declaration
by or for the Declarant, the Association, the County or any other Person, and except for all rights
and benefits accruing to such Exempt Property under the Declaration and zoning conditions of
the Property, including, without limitation, the rights and benefits to use the open space and tree
conservation areas within the Property.
Exempt Property that loses its status as exempt (e.g., property within a publicly -dedicated
street right-of-way that has been closed as a public street or property formerly owned by the
County or a tax-exempt charitable or nonprofit organization for public education and instruction
which has been conveyed to a Person whose status does not qualify for the exemption) shall be
classified either as a Lot or Common Area as determined in the reasonable discretion of the
Declarant, during the period of Declarant control, and thereafter by the Board, and shall be
subject to all of the terms and provisions of the Declaration in the same manner and to the same
extent as other Lots and Common Area,
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RA-3114902 v6

Notwithstanding any provisions of this Section 9.16, no Lot shall be exempt from the
assessments, charges or liens created herein. In addition, in the event a Common Area easement
or Limited Common Area easement encroaches upon a Lot, this shall not exempt a Lot from
paying the assessments, charges or liens created herein.
9.17. Surplus Funds The Association shall not be obligated to spend in any year all the
Assessments and other sums received by it in such year, and may carry forward as surplus any
balances remaining. The Association shall not be obligated to reduce the amount of the Annual
Assessment in the succeeding year if a surplus exists from a prior year, and the Association may
carry forward from year to year such surplus as the Board in its discretion may determine to be
desirable for the greater financial security of the Association and the accomplishment of its
purposes.
ARTICLE 10
INSURANCE
10.01. Insurance Requirements under the Act. Section 47F-3-113 of the Act requires
certain insurance to be carried by the Association and provides for the distribution of insurance
proceeds, requires certain provisions for property and liability insurance and governs repairs
made with insurance proceeds. In the event the insurance requirements of this Article 10 conflict
with, or fail to incorporate, the provisions of Sections 47F-3-113 of the Act, the provisions of the
Act shall apply and govern. The establishment of an amount of insurance greater than required
by the Act is not a conflict.
10.02. By Owners. Each Owner shall procure and maintain fire and extended coverage
insurance as follows:
(a) Coveraee. Each Lot and improvements upon a Lot shall be insured in an
amount equal to one hundred percent (100°/u) insurable replacement value. Such
coverage shall provide protection against:
(i) Loss or damage by fire and other hazards, including extended
coverage, vandalism and malicious mischief;
Such other risks as from time to time shall be customarily covered
with respect to buildings on the land; and
(iii) Such policies shall contain clauses providing form waiver of
subrogation.
(b) Liability. Public liability insurance shall be secured by each Owner with
limits of liability of no less than Three Hundred Thousand and No/100 ($300,000.00)
Dollars per occurrence.
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All such policies shall name the Declarant and the Association as additional insureds as their
interests appear and copies of said policies and renewals thereof shall be furnished to the
Declarant and the Association. Upon failure by any Owner to promptly obtain the required
coverage, naming the Declarant and the Association as additional insureds, or to pay the
premiums due on such policy, the Association may, but is not required to, obtain the required
coverage, naming the Declarant and the Association as additional insureds, and add the cost of
the premium and all other costs of obtaining such coverage to the annual assessment against the
subject Lot. Such cost shall be due and payable on or before the first day of the calendar month
following payment of same by the Association.
Owners may, at their option, obtain insurance coverage at their own expense upon their
own personal property and for their personal liability and living expense and such other coverage
as they may desire.
10.03. By Association. The Association shall procure and maintain insurance coverage
as follows:
(a) Common Areas. All insurance policies upon the Common Area shall be
purchased by the Association for the benefit of all the Association and the Owners and
their mortgagees as their interest may appear, and provisions shall be made for the
issuance of mortgagee endorsements to the mortgagees of Owners.
(b) Coveraee. All buildings and improvements upon the Common Area and
all personal property of the Association included in the Common Areas or otherwise
owned by the Association shall be insured in an amount equal to one hundred percent
(100%) insurable replacement value as determined annually by the Association with the
assistance of the insurance company providing coverage. Such coverage shall provide
protection against:
(i) Loss or damage by fire and other hazards, including extended
coverage, vandalism and malicious mischief;
(ii) Such other risks as from time to time shall be customarily coveted
with respect to buildings on the land; and
(iii) Such policies shall contain clauses providing form waiver of
subrogation. .
(c) Liability. Public liability insurance (including contractual liability
coverage) shall be secured by the Association with limits of liability of no less than One
Million and No/100 Dollars ($1,000,000.00) per occurrence and Two Million and No/100
Dollars ($2,000,000.00) aggregate for bodily injury and property damage, including loss
of use, and shall include an endorsement to cover liability of the Owners as a group to a
single Owner. If necessary, Workers' Compensation and Employer's Liability insurance
shall be secured by the Association so as to comply with the laws and regulations of the
State of North Carolina. There shall also be obtained such other insurance coverage as
the Association shall determine from time to time to be desirable and necessary,
32
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including, but not limited to, directors and officers errors and omissions insurance
coverage. The Association shall cause Declarant to be named as additional insureds on
the above -referenced insurance policies.
to) Premiums. Premiums for insurance policies purchased by the Association
shall be paid by the Association as a Common Expense and shall be included as part of
the Annual Assessment described in Article 9 above.
(e) Proceeds. All insurance policies purchased by the Association shall be for
the benefit of the Association and the Owners and their mortgagees, as their interests may
appear, and shall provide that all proceeds thereof shall be payable to the Insurance
Trustee under this Declaration. The sole duty of the Insurance Trustee shall be to receive
such proceeds as are paid and to hold the same in trust for the purpose stated herein or
stated in the Bylaws and for the benefit of the Owners and their mortgagees in the
following shares:
(i) Proceeds on account of damage to Common Areas are to be held
for the Association.
(ii) If applicable due to insured casualty occurring on the Common
Area, proceeds on account of damage to Lots shall be held in undivided shares for
the Owners of damaged Lots in proportion to the cost of repairing the damage
suffered by each Owner, which cost shall be determined by the Association.
(iii) In the event a mortgagee endorsement has been issued for any Lot,
the share of the Owners shall be held in trust for the mortgagee and the Owners as
their interests may appear.
(f) Subro ag tion. Each insurer shall waive its right to subrogation under any
policy maintained pursuant to this Section 10.03 against any Owner or member of
Owner's household.
(g) Act or Omission of Owner. No act or omission of any Owner, unless such
Owner is acting wn the scope of the Owner's authority on behalf of the Association,
will preclude recovery under any of the policies maintained pursuant to this Section
10.03.
(h) Other Insurance. If, at the time of a loss, there is other insurance in the
name of an Owner covering the same risk covered by the Association's policy, the
Association's policy shall provide primary insurance.
(i) Issuance of Certificates; Cancellation. Any insurer that has issued an
insurance policy under this Section shall issue certificates or memoranda of insurance to
the Association and, upon written request, to any Owner or Mortgagee. Any insurer
issuing an insurance policy under this Section 10.03 may not cancel or refuse to renew
the policy until thirty (30) days after notice of the proposed cancellation or non renewal
has been mailed to the Association, each Owner and each Mortgagee to whom certificates
or memoranda of insurance have been issued at their respective last known addresses.
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10.04.
Distribution
of
Insurance
Proceeds.
Proceeds of insurance
policies received by
the Insurance
Trustee shall
be
distributed
in the following manner:
(a) Expense of the Trust. All expenses of the Insurance Trustee shall be first
paid or provisions made therefore.
(b) Reconstruction or Repair. The remaining proceeds shall be paid to defray
the cost of repairs to the Common Area and, if applicable due to insured casualty
occurring on the Common Area, proceeds on account of damage to Lots shall be paid to
defray the cost of repair to the Lots. Any proceeds remaining after defraying such costs
shall be distributed to the beneficial Owners as provided in Section 10.03(e)(ii).
10.05. Fidelity Inswance or Bond. All persons responsible for or authorized to expend
funds or otherwise deal in the assets of the Association or those held in trust, shall first be
bonded by a fidelity insurer to indemnify the Association for any loss or default in the
performance of their duties in an amount equal to six (6) months' assessments, plus reserves
accumulated.
10.06. Obli>?ation to Rebuild. Any portion of the Property for which insurance is
required under Section 10.02 shall be promptly and diligently repaired, replaced, and restored by
the Owner thereof, unless (i) this Declaration is terminated, or (ii) repair or replacement would
be illegal under any state or local health or safety statute or ordinance.
Any portion of the Property for which insurance is required under Section 10.03 of this
Article which is damaged or destroyed shall be repaired or replaced promptly by the Association
unless (i) this Declaration is terminated, (ii) repair or replacement would be illegal under any
state or local health or safety statute or ordinance, or (iii) the Owners decide not to rebuild by an
eighty percent (80%) vote of the Voting Power of the Association. The cost of repair or
replacement in excess of insurance proceeds and reserves is a common expense, and the cost
thereof may be recovered by one or more Special Assessments levied by the Board against all
Owners as provided herein. If any portion of the Common Area is not repaired or replaced, (i)
the insurance proceeds attributable to the damaged Common Areas shall be used to restore the
damaged area to a condition compatible with the remainder of the Property and (ii) the remainder
of the proceeds shall be distributed to all the Owners or lien holders, as their interests may
appear, in proportion to the Common Area liabilities of all the Lots.
ARTICLE 11
DAMAGES AND DESTRUCTION
11.01. Damage to Lots. Restoration and repair of damage to any Lot (including, in
accordance with the definition of "Lot," the improvements thereon) shall be made by and at the
expense of the Owner thereof.
11.02.
Damage
to
Common Area.
Restoration and repair of damage to any Common
Area shall be
made at the
expense of the
Association unless,
under• the provisions of Section
47F-3-113(g),
the repair
or restoration
is not required to
be effected, provided that the
improvement
is not otherwise required by
the County. If the
work is to be accomplished, the
Association shall promptly
contract for the
repair, restoration or
reconstruction and, if necessary,
34
RA31 I4902 vG

collect from the Insurance Trustee any proceeds of insurance as received in accordance with
Section 10.03. The difference, if any, between the insurance proceeds payable by reason of such
repairs and the cost thereof may be recovered by one or more Special Assessments levied by the
Board against all Owners as provided herein.
Funds collected and held by the Insurance Trustee shall be disbursed by the Insurance
Trustee for the purpose of repair, restoration or reconstruction in accordance with the terms and
conditions of repair or reconstruction contract(s) between the Association and Persons engaged
to perform the work. Funds from any Special Assessment shall be delivered to and held in trust
by the Insurance Trustee and shall be held and disbursed for repair, restoration and
reconstruction in the same manner as insurance proceeds. The Insurance Trustee may invest and
reinvest funds held by it in a manner consistent with its duties as trustee. The Insurance Trustee
shall be entitled to a reasonable fee for its services.
ARTICLE 12
EMINENT DOMAIN
12.01. Eminent Domain. Notwithstanding any provision contained herein to the
contrary, in the event of a taking of all or any portion of a Lot or all any portion of the Common
Area by eminent domain, or by conveyance in lieu thereof, the awards paid on account thereof
shall be applied in accordance with Section 47F-1-107 of the Act. If all or any portion of the
Common Area is taken by action in eminent domain (hereinafter called a "taking"), the
Association shall give written notice of the proceedings to all Owners and Mortgagees, and the
condemnation award shall be fairly and equitably apportioned among the Owners, Mortgagees
and the Association as provided in the Act.
12.02. Repair, Restoration, Reconstruction. If only a portion of a Common Area facility
is talcen, the Board shall promptly contract for the repair, restoration or reconstruction of the
Common Area facility to a complete architectural unit, to the extent such repair, restoration and
reconstruction is reasonably necessary and practical. If the cost of repair, restoration and
reconstruction of the Common Area exceeds the amount awarded by the court for such purposes,
the difference may be recovered by a special assessment levied against all Owners as provided
herein.
ARTICLE 13
ARCHITECTURAL CONTROL
13.01. Architectural Control. No building, s�✓imming pool, spa, statuary, flag pole,
mailbox, basketball goal or other sports equipment (permanent or portable), play equipment,
fence, wall, gazebo, or any other structure or improvement shall be placed, erected, commenced,
constructed, demolished, rebuilt or altered upon any Lot or attached or affixed to any
improvement upon any Lot or upon the Common Area nor shall any exterior addition to or
change or alteration of a residence building be made, including, but not limited to, additions or
alterations to any deck, fence, wall, driveway, or patio, planting or clearing and cutting of trees,
color or painting of the exterior (other than maintenance to and touch-up painting to preserve the
original exterior paint) or change of the type of exterior finish, the installation of aerials, satellite
dishes, flags or awnings or the addition of any exterior attachment (such as a storm door) until an
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RA-3114902 v6

application, including plans and specifications showing the nature, kind, shape, height, materials,
finishes, colors and location of the same (including floor plans and elevations) (the "Plans"),
shall have been submitted in triplicate to and approved in writing by the Architectural Control
Committee; provided, however, that no such approval shall be required for alterations solely to
the interior of any residential structure. The Board may require a reasonable fee to accompany
each application for approval. The Architectural Control Committee shall have the absolute
and exclusive right to approve or disapprove Plans in its sole discretion and may approve
or disapprove Plans based on purely aesthetic reasons, which in the sole discretion of the
Architectural Control Committee shall be deemed sufficient. Absent an approval from the
Architectural Control Committee the proposed alteration or improvement may not be
commenced. THE RESTRICTIONS HEREIN CONTAINED SHALL HAVE NO
APPLICATION TO THE DEVELOPMENT, IMPROVEMENT, MAINTENANCE AND
REPAIR OF THE PROPERTY BY DECLARANT, AND NEITHER THE BOARD NOR THE
ARCHITECTURAL CONTROL COMMITTEE SHALL HAVE ANY POWER OR
AUTHORITY TO REVIEW OR REQUIRE MODIFICATIONS TO THE PLANS FOR
CONSTRUCTION OR INSTALLATION OF IMPROVEMENTS BY DECLARANT.
The installation of antennae and of satellite dishes or disks shall be permitted on a Lot if
accomplished in strict compliance with the limitations and conditions imposed by the
Telecommunications Act of 1996, as amended from time to time, but no antenna or disk which is
in any dimension larger than prescribed by the Telecommunications Act of 1996 or which is not
installed in accordance with the advance notice requirements and location guidelines of the
Telecommunications Act of 1996 may be installed or maintained on any Lot except with the
prior written approval of the Architectural Control Committee.
The installation of solar panels or other "green energy" improvements ("Green Energy
Improvements") to the roof or exterior of a dwelling located on a Lot shall be permitted in
accordance with NCGS §2213-20 after approval by the Architectural Control Committee. Upon
any such approval for the installation of Green Energy Improvements, the Owner of such Lot, its
successors and assigns, shall thereafter be responsible for the installation, maintenance and repair
of the Green Energy Improvements and any and all damage caused to the dwelling on the Lot or
to adjacent dwellings, if applicable, during the installation, maintenance or repair of such Green
Energy Improvements, and, as a condition to such approval, Declarant and/or the Architectural
Control Committee may require the Owner of the subject Lot to enter into a license or other
agreement relative to same. The Association shall not be responsible for the installation,
maintenance or repair of Green Energy Improvements installed by an Owner.
13.02. Architectural Control Committee.
(a) Membership; Right of Declarant to Act as ACC with Respect to Initial
Construction.
(i) The Architectural Control Committee shall be composed of three
(3) persons (who need not be Members of the Association) appointed by the
Board. A majority of the Architectural Control Committee may designate a
representative to act for it. In the event of death, resignation, or removal by the
36
RA-31 I4902 vG

Board of any member of the ACC, the Board shall have full authority to designate
a successor. Unless otherwise approved by the Association, neither the members
of the ACC nor its designated representative shall be entitled to any compensation
for services performed pursuant to this Section. The Association shall keep, or
cause to be kept, a list of the names and addresses of the persons who form the
ACC and a list of the names and addresses of any designated representatives of
the ACC, and such a list shall be available in the principal office of the
Association to any Owner upon request.
(ii) Notwithstanding the foregoing, as to the initial construction of
improvements on any Lot (the "Initial Construction of Improvements"), the
Declarant shall serve as the Architectural Control Committee responsible for the
review, approval, and monitoring of construction of improvements. Any requests
for modifications or alterations of improvements in fact constructed on a Lot or
for the construction of additional improvements on a Lot shall be the
responsibility of the Architectural Control Committee, which need not be the
Declarant if it so directs, but, if not the Declarant, Declarant shall have the right to
approve or disapprove any decisions made by the ACC upon fifteen (15) days
written notice to the ACC and the applicable Owner following the thirty (30) day
period for the Architectural Control Committee's decision. The rights of the
Declarant pursuant to this section shall cease upon the Completion of Sales. Prior
to the Completion of Sales, the Declarant may at any time relinquish, either
temporarily or permanently, its rights to review, approve and monitor the Initial
Construction of Improvements.
(b) Procedure. At least thirty (30) days prior to the commencement of any
construction on a Lot, the Plans for such Lot shall be submitted to the ACC. Approval
shall be subject to such regulations and architectural standards as may from time to time
be promulgated by the ACC. Within thirty (30) days after receipt of the Plans and any
other requested information, the Architectural Control Committee shall notify the Owner
of the Lot in writing as to whether the Plans have been approved. Unless a response is
given by the ACC within thirty (30) days from receipt of all required information, the
Plans shall be deemed disapproved. The response of the Architectural Control
Committee may be an approval, a denial, an approval with conditions or a request for
additional information. A request for additional information shall be deemed a
determination that the information submitted was inadequate, and the thirty (30) day time
period for further ACC response shall only commence upon receipt of the requested
additional information. No construction shall be commenced until either the fifteen (15)
day time period for Declarant's approval has passed or Owner has received Declarant's
approval if the ACC is not the Declarant and Declarant still has the rights as outlined in
13.02(a)(ii) above. If an approval with conditions is granted and construction then
begins, the conditions shall be deemed accepted by the Owner of the Lot, and the
conditions imposed shall become a part of the approved Plans. No improvements shall
be constructed except in strict conformity with the approved Plans. The ACC shall have
the right to monitor construction of improvements and investigate compliance with the
approved Plans and is hereby granted the right to enter upon any Lot in order to do so.
37
RA-31I4902 v6

Any Owner who submits Plans to the ACC and disagrees with the finding of the ACC
may appeal the decision to the Board by giving written notice of appeal to the President of the
Association within fifteen (15) days following its receipt of notice of denial. The Board shall
review the Plans and hold a meeting to hear the case with the Owner and the ACC or its
representative. At such meeting the ACC or its representative shall present to the Board specific
reasons why the Plans were denied, and the Owner or his agent may present information
challenging the findings of the ACC. The decision of the ACC shall only be overridden by a
majority vote of the Board. Notwithstanding the foregoing, an Owner shall have no right to
appeal decisions by the Declarant acting as the ACC with respect to the Initial Construction of
Improvements or to approvals by the ACC which are disapproved by the Declarant pursuant to
Section 13.02(a)(ii).
The Association may adopt a schedule of reasonable fees for processing requests for
approval. Such fees will be payable to the Association at the time that the Plans and related
documents are submitted to the ACC. The ACC shall have the right, exercisable in its sole
discretion, to procure the services of a consultant of its own choosing for purposes of assisting
the ACC in its review of any Plans, and the cost of such consulting service(s) shall be the
responsibility of the respective applicant or Owner of the subject Lot and shall be in addition to
any fees due for processing any requests for approval.
All notices required to be given under this Section 13.02(b) shall be given in writing and
delivered by hand, mailed with prepaid postage or deposited with an overnight carrier (e.g.
Federal Express, UPS, etc.). If the ACC denies an application, the ACC shall specify the
particular grounds upon which denial of such application is based. If the ACC approves the
application, one set of Plans, marked approved (or approved with specified conditions), shall be
retained by the ACC, and the remaining two sets of Plans shall be returned to the applicant.
13.03. Landscape Plan; Landscaping. As part of the Plans package submitted by an
Owner to the ACC for approval of the Initial Construction of Improvements or any
improvements thereafter, there shall be included a comprehensive landscape plan (the
"Landscape Plan"). Shown thereon, in addition to the scheme for decorative plantings, shall be
all of the planned site improvements and modifications, including, but not limited to, major
topographic changes and plans for revegetation and restabilization thereof, the specifications for
all terraces, walkways, driveways, paths, fences, bulkheading, walls, pools, outdoor lighting and
for other fixtures and structures to be constructed as part of the Landscape Plan.
The Landscape Plan shall unite the Lot as well as all other structural aspects of the
landscape with its setting and shall provide for the introduction of plant materials of reasonable
size and quantity to create (when first installed) a mature landscape scene.
Each Lot shall be maintained consistently with the Landscape Plan approved for it by the
ACC. All material changes to the Landscape Plan or the landscaping installed on a Lot shall be
first approved by the ACC. The ACC shall have the authority to create additional landscaping
guidelines applicable to the Property.
13.04. Maintenance of Construction Activities. During the construction of any
improvement to a Lot, the Lot, roads, landscaping and Common Areas or Limited Common
K?E:i
RA-3n4902 v6

Areas adjacent thereto shall be kept in a neat and orderly condition, free from any dirt, mud,
garbage, trash, or other debris, so as not to cause an unsightly condition to exist or damage to
occur. Any damage to the street, curb, sidewalk or to any part of any Common Areas, Limited
Common Areas or utility system caused by an Owner or an Owner's builder shall be repaired by
such Owner. Owners and their agents and employees shall adhere to the construction standards
promulgated from time to time by the Association.
In the event the Owner or his agent, employee or contractor shall fail to maintain the Lot
and adjoining areas, as specified herein, or damage occurs and such failure continues or damage
remains unrepaired for seven (7) days following delivery of written notice thereof from
Declarant or the Association, Declarant or the Association shall have the right, exercisable in its
sole discretion, to summarily abate any unsightly conditions, make needed repairs, and to remove
any rubbish, refuse, unsightly debris and/or growths from the Lot and adjoining area. In the
event the Declarant or the Association, after such notice, causes the subject work to be done, the
costs of such shall be reimbursed by the Owner to the Association and will become a continuing
lien on the Lot until paid.
13.05. Timely Completion. When construction of any Lot, structure, improvement, or
addition thereto has begun, work thereon shall be prosecuted diligently and continuously until
the full completion thereof. It is a requirement that Lots under construction in the Property be
"dried -in" with exterior finishes installed (roofing, windows and finish siding and trim in place)
within one hundred twenty (120) days of the commencement of construction and that all phases
of work, including execution of the Landscape Plan, be complete within six (6) months of the
date of ACC approval. In the event that completion is delayed beyond one year from the date of
ACC approval and provided the Owner is notified within thirty (30) days of the expiration of the
one year construction period, the ACC may, upon unanimous vote of the committee, rescind the
original approval and require that the Owner resubmit Plans for approval.
13.06. Reconstruction of Residences. In the event of damage or destruction to a
residence by fire or other casualty, the Owner shall within four (4) months diligently commence
to reconstruct such residence as soon as reasonably possible and substantially in accordance with
the original Plans; provided, however, that such residence shall be restored so that the exterior
appearances thereof substantially resemble their appearances in form and in color prior to such
damage or destruction. Notwithstanding the foregoing, however, any Owner of a damaged
residence may request permission from the ACC to reconstruct or repair his or her residence in
accordance with revisions in the Plans. The ACC shall grant such requests only in the event that
the proposed change or deviation will materially benefit and enhance the entire Property in a
manner generally consistent with the plan and development thereof.
13.07. Limitation of Liability. Review and approval of any application pursuant to this
Article 13 is made on the basis of aesthetic considerations only and the ACC shall not bear any
responsibility for ensuring the structural integrity or soundness of approved construction or
modifications, nor for ensuring compliance with building codes and other governmental
requirements. Neither the Declarant, the Association, the Board, the ACC, or member of any of
the foregoing shall be held liable for any injury, damages, or loss arising out of the manner or
quality of approved construction on or modifications to any Lot.
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12A-3114902 vG

13.08. Enforcement. Any construction, alteration, or other work done in violation of this
Article 13 shall be deemed to be nonconforming. Upon written request from the Board, the ACC
or the Declarant, Owners shall, at their own cost and expense, remove such construction,
alteration, or other work and shall restore the land to substantially the same condition as existed
prior to the construction, alteration, or other work. Should an Owner fail to remove and restore
as required hereunder, the Board or its designees shall have the right to enter the property,
remove the violation, and restore the property to substantially the same condition as existed prior
to the construction, alteration or other work. All costs, together with the interest at the maximum
rate then allowed by law, may be assessed against the nonconforming Lot and collected as a
special assessment pursuant to Section 9.06 hereof.
Any contractor, subcontractor, agent, employee, or other perrnittee of an Owner who fails
to comply with the terms and provisions of this Article may be excluded by the Board from the
Property. In such event, neither the Association, its officers, or directors shall be held liable to
any person for exercising the rights granted by this Section 13.08.
In addition to the foregoing, the Board shall have the authority and standing, on behalf of
the Association, to pursue all legal and equitable remedies available to enforce the provisions of
this Article 13 and the decisions of the ACC.
ARTICLE 14
MORTGAGEE PROTECTION
14.01. Interpretation. In the event any provision of this Article 14 is inconsistent with or
contrary to any other provision of this Declaration, the provisions of this Article 14 shall control.
14.02. Notices. Any Mortgagee of any Lot, by written notice to the Association setting
forth the Lot encumbered, the Owner thereof and the address to which notices may be sent, may
request and thereby be entitled to receive written notice from the Association of (a) any default
which is outstanding for sixty (60) days or longer by the Owner of such Lot in the performance
of his or her obligations under or in compliance with the provisions of this Declaration, the
Bylaws or the Rules and Regulations, (b) any substantial damage to or destruction of the
Common Area, including the improvements located thereon, or, if known to the Association, any
substantial damage to or destruction of a Lot, including the improvements located thereon, and
(c) any proposed or threatened taking by power of eminent domain of the Common Area or any
portion thereof or of any Lot or portion thereof.
14.03. Mortgagee's Right to Information. Upon written request to the Association, a
Mortgagee is entitled to: (a) inspect the books and records of the Association during normal
business hours; (b) receive an annual financial statement of the Association within ninety (90)
days following the end of any fiscal year of the Property; and (c) receive written notice of all
meetings of the Association and to designate a representative to attend all such meetings.
14.04. Damage and Destruction Rights. In the event of substantial damage to or
destruction of any Lot or improvements to a Lot or any part of the Common Area no provision of
any document establishing the Property shall entitle the Owner of a Lot or other party to priority
over such Mortgagee with respect to the distribution to such Owner of any insurance proceeds.
40
RA-3114902 vb

14.05. Condemnation Rights. If any Lot or portion thereof or the Common Area or any
portion thereof is made the subject matter of any condemnation proceedings or is otherwise
sought to be acquired by a condemning authority, no provision of any document establishing the
Property shall entitle the Owner of a Lot or other party to priority over such Mortgagee with
respect to the distribution to such Owner of the proceeds of any award or settlement.
14.06. Right of First Refusal. Any right given by an Owner of a Lot to any third person
to purchase such Lot before it is offered for sale or sold to any other person (such right
commonly known as a "right of first refusal") shall not be binding upon or enforceable against
any Mortgagee acquiring such Lot pursuant to exercise of remedies provided for in the
Mortgage, including foreclosure by judicial action or exercise of a power of sale, or by
acceptance of a deed or assignment in lieu of foreclosure.
14.07. Subordination. No provisions contained in this Declaration shall defeat or render
invalid the lien of any Mortgage which is made in good faith and for value. The lien of the
assessments provided for herein shall be subordinate to the lien of any Mortgage recorded prior
to the date any such assessment becomes due. This subordination shall apply only to
assessments on a Lot which have become due and payable prior to a sale or transfer of such Lot
pursuant to a decree of foreclosure or exercise of power of sale. Any Mortgagee who acquires
title to or comes into possession of a Lot pursuant to exercise of remedies provided for in the
Mortgage, including foreclosure by judicial action or exercise of a power of sale, and any
purchaser at a foreclosure sale, shall take the Lot free of any claims for unpaid assessments or
charges against the Lot which have accrued prior to the time such Mortgagee or purchaser
acquires title to or comes into possession of the Lot; provided, however, this exception shall not
be applicable to any claim for assessments or charges levied by the Association against all Lots
for the purpose of recovering any revenue lost by reason of the nonpayment of past due
assessments upon such Lot; and provided further, that except as otherwise provided in this
Section, all of the limitations, restrictions, covenants, conditions, casements, liens, charges,
assessments, and equitable servitudes contained herein shall be binding upon any Owner whose
title is derived through foreclosure sale, trustee's sale or otherwise. Except as provided above,
the sale, transfer or conveyance of title to a Lot shall not relieve a selling Owner from personal
liability for any assessments which became due and payable prior to such sale, transfer or
conveyance, nor relieve such Lot from a duly recorded lien for any such prior unpaid assessment.
14.08. P.a3ments by Mortgagees. Any Mortgagee, after at least ten (10) days' prior
written notification to the Association of the items to be paid and the failure of the Association
within such time to make payment, may pay, alone or in conjunction with other Mortgagees,
delinquent taxes, liens or assessments which may be or become a charge against the Common
Area, or any portion thereof, and any overdue premiums on policies of fire and extended
coverage insurance for the Common Area and in the event of a lapse of such a policy of
insurance, may pay premiums to secure a new policy. In the event such payments are made, the
Mortgagee malting such payment shall be entitled to immediate reimbursement from the
Association to the extent of the payment made.
14.09. Consent of Mortgagee. With respect to any provision in this Declaration
requiring the consent or written approval of a Mortgagee, any Mortgagee who does not respond
!!1
RA-3114902 vG

within thirty (30) days' request by the Association for such consent or written approval shall be
deemed to have approved such request.
ARTICLE 15
ANNEXATION
15.01. Right to Annex. Declarant shall have the right to annex to Ladera subdivision,
thereby bringing within the scheme of this Declaration and subject to the jurisdiction of the
Association, part or all of the Additional Land, if any. Annexation of any real property other
than Declarant's annexation of the Additional Land shall require the vote or written consent of
not less than sixty seven percent (67%) of the Voting Power of the Association. Annexation of
additional property may be accomplished in Phases. Annexation of additional property may be
accomplished in Phases.
15.02. Procedure for Annexation. Any annexation shall be made by recordation of a
Supplemental Declaration covering the real property to be annexed. The Supplemental
Declaration shall describe the real property to be annexed and state that annexation is being
made pursuant to this Declaration for the purpose of extending the jurisdiction of the Association
to cover the property described therein. The Supplemental Declaration may contain such
complementary additions and modifications to the terms of this Declaration as may be necessary
or desirable to reflect the different character, if any, of the Phase being annexed and as are not
inconsistent with the general scheme of this Declaration. Annexation shall be effective upon
recordation of the Supplemental Declaration and thereupon the real property described therein
shall be subject to all of the provisions of this Declaration, to the extent made applicable by the
Supplemental Declaration, and to the jurisdiction of the Association pursuant to the terms of this
Declaration, the Articles, Bylaws and Rules and Regulations.
15.03. Annexed Property. Each Owner of a Lot in an annexed Phase automatically shall
be a Member of the Association and such Owners and annexed real property shall be subject to
assessment by the Association for the benefit of the Property or any part thereof. Assessments of
Lots in an annexed Phase shall commence upon the last to occur of. (a) commencement of
Annual Assessments for the Property, and (b) the first day of the month next following the first
conveyance of a Lot in such Phase to a purchaser, as provided in Section 9.09. The Association
shall have the duties, responsibilities and powers set forth in this Declaration, the Articles and
Bylaws with respect to annexed real property. Except as may otherwise be expressly provided in
this Declaration or any Supplemental Declaration, the Property shall be managed and governed
by the Association as an entirety. Assessments collected from Owners in the Property may be
expended by the Association anywhere in the Property without regard to the particular Phase,
area or subdivision from which such assessments came. All Owners shall have ingress and
egress to and from all the Common Area throughout the Property and any Phase thereof and shall
have use and enjoyment of any Common Area facilities and other amenities contained within the
Common Area throughout the Property, provided that any such use shall be subject to the
provisions of this Declaration, any Supplemental Declaration, the Bylaws and the Rules and
Regulations.
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15.04. Annexed Common Area. All Common Areas and Limited Common Areas within
lands annexed to the Property shall be conveyed to the Association in accordance with Section
4.01,
ARTICLE 16
INDEMNIFICATION OF OFFICERS AND DIRECTORS
The Association shall indemnify any and all persons who may serve or whom have
served at any time as directors or officers of the Association against any and all expenses,
including amounts paid upon judgments, counsel fees and amounts paid in settlement (before or
after suit is commenced), actually and necessarily incurred by such persons in connection with
the defense or settlement of any claim, action, suit or proceeding in which they, or any of them,
are made parties, or a party, which may be asserted against them or any of them, by reason of
being or having been directors or officers or a director or an officer of the Association, except in
relation to matters as to which any such director or officer or former director or officer or person
shall be adjudged in any action, suit, or proceeding guilty of willful and intentional negligence or
misconduct in the performance of his or her duties to the Association. Provided, however, that in
the event of a settlement, the indemnification herein shall apply only when the Board of
Directors approves such settlement and reimbursement as being in the best interest of the
Association.
The provisions hereof shall be in addition to and not exclusive of any and all other rights
to which any director or officer may otherwise be entitled under any law, Bylaw, agreement, vote
of Association Members or otherwise. In the event of death of any officer or director, the
provisions hereof shall extend to such person's legal heirs, representatives, successors and
assigns. The foregoing rights shall be available whether or not such person or persons were in
fact directors or officers at the time of incurring or becoming subject to such expenses, and
whether or not the proceeding, claim, suit or action is based on matters which antedate the
adoption of this Declaration.
ARTICLE 17
EXCULPATION
It is expressly understood and agreed that nothing contained in this Declaration shall be
interpreted or construed as creating any liabty whatsoever, directly or indirectly, against
Declarant or any of its officers, members, managers, employees, agents, attorneys, heirs,
executors, legal representatives, successors or assigns (collectively, the "Declarant Related
Parties") for monetary relief or damages. In particular, and without limiting the generality of the
foregoing, if any proceeding shall be brought to enforce the provisions of this Declaration, the
party instituting such proceeding shall not be entitled to take any action to procure any money
judgment against any of the Declarant Related Parties,
ARTICLE 18
MISCELLANEOUS PROVISIONS
18.01. Conflict
with
the
Act;
Conflict
with
County
Code;
Severability.
Should any of
the terms, conditions,
provisions, paragraphs,
or clauses of this Declaration
conflict with any
43
RA-3114902 v6

provisions of the Act, the provisions of the Act shall control unless the Act permits the
Declaration to override the Act in which event the Declaration shall control. Should any of the
terms, conditions, provisions, paragraphs, or clauses of this Declaration conflict with any
provisions of the County Code, the provisions of the County Code shall control unless the
County Code permits the Declaration to override the County Code in which event the
Declaration shall control. The invalidity of any covenant, restriction, condition, limitation,
provision, paragraph or clause of this Declaration, or any part of the same, or the application
thereof to any person or circumstance, shall not impair or affect in any manner the validity,
enforceability or affect of the rest of this Declaration, or the application of any such covenant,
restriction, condition, limitation, provision, paragraph or clause to any other person or
circumstance.
18.02. Interpretation of Declaration. Whenever appropriate, singular may be read as
plural, plural may be read as singular, and the masculine gender may be read as the feminine or
neuter gender. Compound words beginning with the prefix "here" shall refer to this entire
Declaration and not merely the part in which they appear.
18.03. Law Controlling, This Declaration shall be construed and controlled by and
under the laws of the State of North Carolina.
18.04. Power to Settle Claims. The Board shall have the power and authority to
compromise, settle, release and otherwise adjust claims, demands, causes of action and liabilities
in favor of the Association and the Owners, on behalf of the Association and Owners, as the case
may be, provided any such claim, demand, cause of action or liability arises out of or relates to a
condition or defect common to all or a majority of the Lots or improvements constructed thereon,
or to the development, design, construction, condition, repair or maintenance of or damage or
injury to or defect in the Common Area or part thereof, and the Association shall have the right
and the power to make and receive all payments or other consideration necessary therefor or in
connection therewith. For such purposes, the Board shall be, and hereby is, irrevocably
appointed attorney in fact to act on behalf of all Owners upon such terms and conditions and for
such consideration as may be approved by a majority of the Board.
18.05. Independence of Provisions. The provisions of this Declaration shall be deemed
independent and severable. Invalidation or partial invalidation of any provision of this
Declaration by judgment or court order shall not affect any other provision of this Declaration,
and the remaining provisions shall remain in full force and effect.
18.06. Notices. Notices shall be in writing and shall be addressed as follows: (a) if to an
Owner, to the address of his or her Lot; (b) if to Declarant, to 6701 Carmel Road, Suite 425,
Charlotte, North Carolina 28226; and (c) if to the Association, to 6701 Carmel Road, Suite 425,
Charlotte, North Carolina 28226. The Association may designate a different address for notices
by giving written notice of such change of address to all Owners and to Declarant. Declarant
may designate a different address for notices by giving written notice of such change of address
to all Owners and to the Association. Any Owner may designate a different address for notices
by giving written notice of such change of address to the Association and to Declarant.
44
RA-3I14902 vb

18.07. Headings. The headings used in this Declaration are for convenience and
reference only and the words contained therein shall not be held to expand, modify, or aid in the
interpretation, construction, or meaning of this Declaration.
18.08, Enforcement. The failure of any Owner to comply with the provisions of this
Declaration, the Bylaws, the Articles or the Rules and Regulations shall entitle the Association,
any Owner, or any of them, to maintain an action for the recovery of damages or injunctive relief
or both, and such persons or entities, or any of them, shall have the right to enforce all
limitations, restrictions, covenants, conditions, easements, liens, charges, assessments and
equitable servitudes imposed by or pursuant to the provisions of this Declaration. Failure to
enforce the provisions of this Declaration shall not be deemed a waiver of the right to do so
thereafter. All remedies provided in this Declaration shall be cumulative and in addition to any
other remedies available under law.
18.09. Equal Opportunity Housing. This Property provides equal opportunity housing.
Each Lot sold shall be sold without regard to the race, creed, color, national origin, ancestry,
religion, marital status, familial status, handicap, age or sex of the purchaser.
18.10. Amendments.
(a) Except as otherwise expressly provided herein, this Declaration may be amended
only in strict compliance with the Act, including, without limitation, Section 4717-2-117 of the
Act, except that no Amendment altering or impairing Special Declarant Rights may be made
without the written consent of the Declarant.
This Declaration may be amended or modified at any time by the vote or written consent
of sixty-seven percent (67%) of the Voting Power of the Association. Provided, however, that if
the percentage of the Voting Power necessary to amend a specific provision of this Declaration
shall not be less than the prescribed percentage of affirmative votes required for action to be
taken under that provision. Further provided, that any amendment or modification to this
Declaration must be consented to by Declarant so long as Declarant is the Owner of any Lot or
other portion of the Property, which consent Declarant may grant or withhold in its sole
discretion. Any amendment or modification upon which the vote of Owners is required pursuant
to this Section 18.10 shall become effective when an instrument executed by the Owners voting
for such amendment or modification is filed of record in the Office of the Register of Deeds of
Union County, North Carolina; provided, however, such an amendment or modification, in lieu
of being executed by the Owners voting for such amendment or modification, may contain a
certification of the Secretary of the Association stating that the amendment or modification has
been voted on and approved by the requisite number of votes of the Owners, as provided in this
Section 18.10.
Notwithstanding the terms of the immediately preceding paragraph of this Section 18.10,
during the period of Declarant control as set forkh in Section 8.06, Declarant, without obtaining
the approval of any Owner or Owners other than Declarant, shall have the unilateral right, in its
sole and absolute discretion, to make any amendments or modifications hereto which Declarant
deems necessary or desirable, including, without limitation, amendments or modifications to any
procedural, administrative or substantive provisions of this Declaration.
45
RA-3114902 v6

(b) Any action to challenge the validity of an amendment adopted under Section
18.10(a) must be brought within one (1) year of the amendment's effective date. No action to
challenge any such amendment may be brought after such time.
18.11. Release of Property. Declarant shall have the right, in its sole and absolute
discretion, without the consent of the Association or any other Owner, to release any portion of
the Property then owned by Declarant from the terms of this Declaration by recording a release
in the Office of the Register of Deeds of Union County, North Carolina. After the recordation of
such release, the portion of the Property described therein shall not be subject to the terms of this
Declaration.
ARTICLE 19
STORMWATER FACILITY MAINTENANCE
19.01. Stormwater Facilities. In accordance with the requirements of the County one or
more Stormwater Facilities will be located on the Common Area and from time to time adjoining
property subject to the easement rights of Declarant and the Association. The operation and
maintenance of the Stormwater Facilities are subject to the terms of the Stormwater Facility
Agreements and Stormwater Maintenance Manuals. Upon dedication by map or conveyance in
fee of the Common Area to the Association, the Association shall operate and maintain the
Stormwater Facilities.
19.02. Expenditure Priority. To the extent not inconsistent with other applicable Legal
Requirements, the Association's obligations under the Stormwater Facility Agreements shall
receive the highest priority for expenditures with the exception of expenditures for (i)
assessments levied by the local governmental authorities (ii) ad valorem property taxes (iii)
liability and hazard insurance required to be maintained by the Association (iv) any other
expenditures which are required by law to have a higher priority.
19.03. Reconstruction and Repair Fund. The Association shall establish and maintain
reasonable reserves for the maintenance, reconstruction and repair of the Stormwater Facilities.
19.04. Special Assessments. The Association shall charge Annual and/or Special
Assessments, if necessary, to meet the Association's obligations under the Stormwater Facility
Agreements and Stormwater Maintenance Manuals.
19.05. Dissolution and Transfer. Notwithstanding any provision to the contrary
contained in the Declaration and to the extent permitted by applicable law, the Association shall
not enter into voluntary dissolution unless the Stormwater Facilities are transferred to a person or
entity who assumes the maintenance obligation of the Stormwater Facilities as set forth in the
Stormwater Facility Agreements and the Stormwater Maintenance Manuals, and that to the
extent permitted by applicable law, the Association shall not sell, convey or otherwise transfer
any interest in the Common Area on which the Stormwater Facilities are located to any party
until the intended assumes the maintenance obligation of the Stormwater Facilities as set forth in
the Stormwater Facility Agreements and the Stormwater Maintenance Manuals.
19.06. Easement to the County. Declarant hereby grants to the County an easement for
ingress, egress and regress over and across the Common Area on which the Stormwater Facilities
46
RA-3114902 v6

exist for the purpose of inspecting the Stormwater Facilities and for the purpose of inspecting,
monitoring, maintaining, repairing and reconstructing the Stormwater Facilities and exercising
the other rights of the County that are provided for by the Stormwater Facility Agreements and
the Stormwater Maintenance Manuals. Notwithstanding the foregoing, the County shall not be
obligated to maintain or repair the Stormwater Facilities unless and until the County has agreed
in writing to assume the maintenance responsibility for the Stormwater Facilities and has
accepted any and all rights necessary to carry out that maintenance.
19.07. Stormwater Permit. All development of the Property shall be made in accordance
with that certain State of North Carolina Stormwater Management Permit Number SW3130501
as issued by the Division of Water Quality (as same may be amended from time to time, the
"Stormwater Permit"). The State of North Carolina is hereby made a beneficiary to this
Declaration to the extent necessary to maintain compliance with the Stormwater Permit. No
alteration of the drainage plans associated with the Stormwater Permit may be made without the
express written consent of the State of North Carolina, Division of Water Quality. The
maximum built -upon area for each Lot is described in Section 7.17 above. This Section 19.07
and Section 7.17 shall not be amended without the prior written consent of the State of North
Carolina, Division of Water Quality.
47
nn-suavoz �6

IN WITNESS WHEREOF, the undersigned, being the Declarant herein, has executed this
Declaration as of the date first above set forth.
DECLARANT:
STANDARD PACIFIC OF THE CAROLINAS, LLC,
a Delaware limited liability company
By:
Name: Steve Francis
Title: Division President
d��GLe � County, North Carolina
I certify that the following person personally appeared before me this day and
acknowledged to me that he or she voluntarily signed the foregoing document for the purpose
stated therein and in the capacity indicated: Steve Francis.
My Commission Expires:
ary Public'
Print Name: 4ff�v
[Affix Notary Stamp or Seal]
JOHN R. LObERG
NOTARY PUBLIC
Mecklenburg County, North Carolina
My Comm"lon Expires 9f lIM19
48
RA-3114902 v6

I_DlV[I�YII1
Property
BEING ALL of that certain tract or parcel of land identified as "Phase 1", as shown on that
certain plat of survey entitled "Subdivision Plat, LeDoyen Property @ New Town," dated
August 26, 2013, prepared by Stephen S. Dyer, Professional Land Surveyor, of The Isaacs
Group, and recorded in Plat Cabinet M, File 63, Union County Registry, which plat is referenced
for a more particular description.
RA-31l4902 v5

EXHIBIT B
Additional Land
Those certain tracts or parcels identified as:
1.
Any an
owned by the
Declarant or hereinafter acquired by Declarant located
immediately
adjacent to
or in proximity
to the Property.
2. BEING ALL of that certain tract or parcel of land identified as "Phase 2"
containing 23.103 acres, as shown on that certain plat of survey entitled "Subdivision Plat,
LeDoyen Property @ New Town, Sandy Ridge Township, Union County, North Carolina,"
dated August 26, 2013, prepared by Stephen S. Dyer, Professional Land Surveyor, of The Isaacs
Group, and recorded in Plat Cabinet M, File 63, Union County Registry, which plat is referenced
for a more particular description.
50
RA-3114902 v6