SW3201203_Declaration of Covenants, Restrictions, and Easements_20210412

Prepared By and After Recording Return to:
Michael R. Ganley, Attorney
Bagwell Holt Smith P.A.
111 Cloister Court, Suite 200
Chapel Hill, NC 27514
DECLARATIONOF
COVENANTS, RESTRICTIONS AND EASEMENTS
FOR
ENCORE AT STREAMSIDE
UNIONCOUNTY, NORTH CAROLINA
NOTE: AGE RESTRICTIONS ARE APPLICABLE TO LOTS SUBJECT TO THIS DECLARATION

TABLE OF CONTENTS
ARTICLE I DEFINITIONS...................................................................................................................2
ARTICLE II. PROPERTY SUBMITTED TO THE DECLARATION.............................................4
Section 2.01. Lots Hereby Subjected to this Declaration.............................................................................................4
Section 2.02. All Lots Bear the Burdens and Enjoy the Benefits of this Declaration...................................................4
Section 2.03. Annexation of Additional Property.........................................................................................................4
Section 2.04. Withdrawal of Property..........................................................................................................................4
Section 2.05. Other Acts of Declarant..........................................................................................................................5
Section 2.06. Resolution of Conflicts Between Documents.........................................................................................5
ARTICLE III. EASEMENTS OVER AND AGREEMENTS REGARDING THE PROPERTY.....5
Section 3.01. Easements over Lots...............................................................................................................................5
ARTICLE IV. THE ASSOCIATION....................................................................................................6
Section 4.01. The Association......................................................................................................................................6
Section 4.02. Membership............................................................................................................................................6
Section 4.03. Classes of Membership; Voting Rights..................................................................................................6
Section 4.04. Suspension of Membership Rights.........................................................................................................6
Section 4.05. Meetings of the Membership..................................................................................................................7
Section 4.06. Control by Declarant...............................................................................................................................7
Section 4.07. Association Acts Through Its Board of Directors...................................................................................7
Section 4.08. Professional Management.......................................................................................................................7
ARTICLE V. ASSOCIATION PROPERTY........................................................................................7
Section 5.01. Common Areas and Association Property..............................................................................................7
Section 5.02. Limited Common Areas..........................................................................................................................9
Section 5.03. Member’s Rights in Association Property..............................................................................................8
Section 5.04. Use of the Encore at Streamside Amenities............................................................................................8
Section 5.05. Rules and Regulations............................................................................................................................8

Section 5.06. Condemnation.........................................................................................................................................9
Section 5.07. Damage or Destruction...........................................................................................................................9
Section 5.08.Conveyance and Encumbrance of Common Area..................................................................................9
Section 5.09. Taxes and Governmental Assessments...................................................................................................9
ARTICLE VI ASSESSMENTS..............................................................................................................9
Section 6.01. Creation of Lien and Personal Obligation...............................................................................................9
Section 6.02. Purposes of Assessments......................................................................................................................10
Section 6.03. Determinationof Annual Assessment and Shares Thereof...................................................................10
Section 6.04. Special Assessments.............................................................................................................................12
Section 6.05. Special Assessment for Working Capital Reserve................................................................................11
Section 6.06. Specific Assessments............................................................................................................................11
Section 6.07. Effect of Non-Payment of Assessments; Remedies of the Association................................................11
Section 6.08. Effect of Foreclosure or Bankruptcy.....................................................................................................13
Section 6.09. Revival of Assessment Lien.................................................................................................................15
Section 6.10. No Merger.............................................................................................................................................14
Section 6.11. Assessments as Independent Covenant.................................................................................................14
Section 6.12.Assessment Collection Policies............................................................................................................14
Section 6.13. Budget Deficits During Development Period.......................................................................................14
Section 6.14. Failure to Assess...................................................................................................................................14
ARTICLE VII. MAINTENANCE........................................................................................................16
Section 7.01. Association’s Maintenance Responsibility...........................................................................................16
Section 7.02. Owner’s Maintenance Responsibility...................................................................................................15
Section 7.03. Adjacent or Adjoining Owners.............................................................................................................16
Section 7.04. Remedy for Owner’s Failure to Maintain.............................................................................................16
Section 7.05. Damage or Destruction.........................................................................................................................17
ARTICLE VIII. ARCHITECTURAL CONTROL............................................................................17
ARTICLE IX. INSURANCE................................................................................................................20
Section 9.01. Association Insurance...........................................................................................................................20
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Section 9.02. Individual Insurance.............................................................................................................................19
Section 9.03. Additional Insurance Requirements......................................................................................................21
ARTICLE X. MORTGAGEE PROVISIONS.....................................................................................20
Section 10.01. Notice of Action.................................................................................................................................20
Section 10.02. Audit...................................................................................................................................................22
Section 10.03. No Priority..........................................................................................................................................22
Section 10.04. Failure of Mortgagee to Respond.......................................................................................................22
ARTICLE XI. LEASE RESTRICTIONS............................................................................................22
ARTICLE XII. AMENDMENT...........................................................................................................21
ARTICLE XIII. NON-ARBITRAL PROCEEDINGS.........................................................................23
ARTICLE XIV. ARBITRAL PROCEEDINGS....................................................................................23
Section 14.01. Negotiation.........................................................................................................................................23
Section 14.02. Mediation............................................................................................................................................22
Section 14.03. Final and Binding Arbitration.............................................................................................................24
Section 14.04. Amendment.........................................................................................................................................25
ARTICLE XV. DEVELOPMENT ACTIVITIES.................................................................................24
Section 15.01. Development Activities......................................................................................................................24
Section 15.02. Marketing............................................................................................................................................24
Section 15.03. Access.................................................................................................................................................24
Section 15.04. Construction........................................................................................................................................26
Section 15.05. Use of Common Areas........................................................................................................................26
Section 15.06. Construction Facilities........................................................................................................................25
Section 15.07. Parking................................................................................................................................................25
Section 15.08. Construction Regulations....................................................................................................................25
Section 15.09. Time Period........................................................................................................................................25
Section 15.10. Liability..............................................................................................................................................26
ARTICLE XVI. AGE RESTRICTION.................................................................................................26
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Section 16.01.General................................................................................................................................................25
Section 16.02.Requirements for Occupied Dwellings...............................................................................................25
Section 16.03.Transfer of Title..................................................................................................................................26
Section 16.04.Restrictions on Occupancy by Persons under the Age of 30..............................................................26
Section 16.05.Restrictions on Regular Visitation by Persons under the Age of 30...................................................26
Section 16.06.Change in Occupancy.........................................................................................................................26
Section 16.07.Monitoring Compliance; Appointment of Attorney-in-Fact...............................................................27
Section 16.08.Restriction on Number of Persons Occupying Each Dwelling...........................................................27
Section 16.09.Association Action..............................................................................................................................27
ARTICLE XVII. MISCELLANEOUS................................................................................................29
Section 17.01. No Waivers.........................................................................................................................................29
Section 17.02. Duration..............................................................................................................................................28
Section 17.03. Notices................................................................................................................................................28
Section 17.04. Successors to Declarant......................................................................................................................28
Section 17.05. Right to Develop.................................................................................................................................29
Section 17.06. Liability Arising from Conduct of Owners.........................................................................................30
Section 17.07. Conflict with the Act, Severability.....................................................................................................29
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DECLARATION OF
COVENANTS, RESTRICTIONS AND EASEMENTS
FOR ENCORE AT STREAMSIDE
UNIONCOUNTY,
NORTH CAROLINA
THIS DECLARATION OF COVENANTS, RESTRICTIONS AND EASEMENTS is made by Weekley
Homes,LLC, aDelawarelimited liability company(“Declarant”).
W I T N E S S E T H:
WHEREAS, Declarantis the owner of all that tract or parcel of land lying and being in UnionCounty, North
Carolina, as shown on the legal description attached hereto as Exhibit “A”, incorporated herein (the “Property”);and
WHEREAS, Declarant intend to impose on the Property mutually beneficial restrictions, including but not
limited to age restrictions pursuant to the United States Housing for Older Persons Act of 1995 and the regulations
promulgated by the Department of Housing and Urban Development pursuant thereto,under a general plan of
improvement for the benefit of the owners of each portion of the Property and to establish a procedure for the overall
development, administration, maintenance and preservation of the Property; and
WHEREAS, in furtherance of such plan, it is desirable to create Encore at StreamsideHomeowners
Association, Inc. to own, operate, maintain and/or manage, as applicable, the Area of Common Responsibility (as
defined below) and to administer and enforce the covenants and restrictions and design guidelines imposed hereby;
and
WHEREAS, it is intended that every owner of any of the Lotsautomatically, and by reason of such
ownership, shall become a Member of the Association and be subject to its rules and regulations and the assessments
and charges made by the Association;
NOW THEREFORE, Declarant doeshereby submit the Property to the provisions of this Declaration. This
document establishes a mandatory membership homeowners association pursuant to the provisions of the North
Carolina Planned Community Act, N.C. Gen. Stat. §§ 47F-1-101, et seq.
DEFINITIONS.
As used in this Declaration, the following terms shall have the meanings ascribed to them in this Section,
such definitions being cumulative of those set forth in the recitals and elsewhere in this Declaration.
“Act” shall mean and refer to the North Carolina Planned Community Act, Chapter 47F, North Carolina
General Statutes as same may be amended from time to time.
“Additional Property”shall mean any and all real property immediately adjacent tothe Propertyor separated
from the Property only by streets, open space, or recreational facilities.
“Amenities” shall mean those certain recreational improvements and facilities, which may include a pool,
club house and other related facilities and improvements, which are now or hereafter located withinthe Property.
“Annual Assessment”shall have the meaning specified in ARTICLE VIentitled “ASSESSMENTS”, and
shall constitute the assessments which, pursuant to the provisions of such Article, shall be levied by the Association
against the Lots each year for the purpose of raising the funds necessary to pay the “Annual Expenses”(as that term
is defined in such Section).
“Areaof Common Responsibility”shall mean the areas which,by the terms of this Declaration or by contract
or agreement with any other Person become the responsibility of the Association. Area of Common Responsibility
shall include any Common Areas or Limited Common Areas as provided for herein.
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“Articles of Incorporation”shall mean the Articles of Incorporation of the Associationfiled with the North
Carolina Secretary of State, as the same may be amended from time to time.
“Association”shall mean Encore at StreamsideHomeowners Association, Inc., a North Carolina non-profit
corporation.
“Board of Directors”or the “Board”shall mean the body responsible for the administration of the
Association, as provided in the Bylaws.
“Bylaws”shall mean the Bylaws of the Association, as the same may be amended from time to time.
“Common Areas”shall have the meaning specified in ARTICLE Ventitled “ASSOCIATION
PROPERTY”.
“Declarant”shall mean Weekley Homes,LLC, a Delawarelimited liability company,or any successor or
assign who shall acquire any portion of the Property for the purpose of development and/or sale and who (a) is
designated as Declarant hereunder in a document executed by the immediately preceding Declarantand recorded with
the Register of Deeds.
“Declaration”shall mean this Declaration of Covenants, Restrictions and Easements, as the same may be
hereafter amended in accordance with the terms hereof.
“Development Period”shall mean theperiod of time during which Declarantowns any property that is
subject to this Declarationor any property not subject to this Declaration which is either depicted on a recorded
subdivision plat with property that is subject to this Declaration. Declarant may, but shall not be obligated to,
relinquish its rights under this Declaration and terminate the Development Period by recording a written instrument
with the Register of Deedsstating the intent to terminate the Development Period.
“DRC” shall mean the Person entitled to exercise architectural controlpursuant to thisDeclaration, being
defined as the “Reviewer” therein.
“Dwelling” shall mean and refer to any buildingon a Lot for which a certificate of occupancy has been issued
andwhich is used or occupied, or intended for use or occupancy, as a residence,whether by the Owner thereof or by
tenants or lessees of the Owner.
“Improved Lot”shall mean a Lot(i) upon which there is located a structure for which a certificate of
occupancy has been issued by the applicable government authority, and (ii) which has been sold to a Person who is
not Declarant.
“Limited Common Areas” shall have the meaning specified in ARTICLE Ventitled “ASSOCIATION
PROPERTY”.
“Lot” shall mean each portion of the Property which may be independently owned and conveyed and which
is intended for development, use, and occupancy as a detached residence for a single family, as shown on the Plat.
“Member”shall mean a Person subject to membership in the Association pursuant to ARTICLE IVentitled
“The Association”.
“Mortgage”shall mean a deed of trust or other document by means of which title to any Lotis conveyed or
encumbered to secure a debt. The term “Mortgagee”shall refer to a beneficiary or holder of a Mortgage.
“Owner”shall mean any Person who is a record owner by purchase, transfer, assignment or foreclosure of a
fee or undivided fee interest in a Lot; provided, however, that any Person who holds such interest merely as security
for the performance of an obligation shall not be an Owner.
“Person”shall mean a natural person, corporation, trust, partnership or any other legal entity.
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“Plat(s)”shall mean all plats for any portion of the Property, and any amendments to such Plats, which are
hereafter recorded in the Register of Deeds' plat book records, and shall also include any Plats, or amendments thereto
recorded with respect toany of the AdditionalPropertysubjectedto this Declarationpursuant to Section 2.03.
“Property”shall have the meaning ascribed to it hereinabove.
“Qualifying Resident” means a person fifty-five (55)years of age or older who resides in a Dwelling on an
Improved Lot.
“Register of Deeds”shall mean the Register of Deeds for the County where the property is located.
“Supplemental Declaration”shall mean an instrument filed with the Register of Deeds which imposes
additional restrictions and/or obligations on the land described in such instrument.
“Unimproved Lot”shall mean any Lotthat is not an Improved Lot.
PROPERTY SUBMITTED TO THIS DECLARATION.
Section 2.01LotsHereby Subjected to this Declaration. Declarant, for itself and its successors and assigns,does
hereby submit the Property and the Lotsto this Declaration. The Property shall hereafter be held, transferred, sold,
conveyed, used, leased, occupied, mortgaged or otherwise encumbered subject to all of the terms, provisions, liens,
charges, easements, covenants and restrictions set forth in this Declaration, including, but not limited to, the lien
provisions set forth herein. All of the terms, provisions, liens, charges, easements, covenants and restrictions set forth
in this Declaration as applicable to the Lots shall be a permanent charge thereon, and shall run with the Lots.
Section 2.02All Lots Bear the Burdens and Enjoy the Benefits of this Declaration. Every Owner, by taking
record title to a Lot, agrees to all of the terms and provisions of this Declaration. Each of the Lots is subject to all
burdens, and enjoys all benefits, made applicable hereunder.
Section 2.03Annexation of Additional Property.Declarant may, at any time, and from time to time, until ten
(10) years after theend of the Development Period, subject all or part of the Additional Property to the terms,
provisions, liens, charges, easements, covenants and restrictions of this Declaration by executing and recording with
the Register of Deeds an amendment to this Declaration describing the property being annexedand adding it to Exhibit
"A" of this Declaration, thereby making it part of the "Property".
From and after such recording, the annexed property shall be part of the Property and shall be held,
transferred, sold, conveyed, used, leased, occupied, mortgaged or otherwise encumbered subject to all of the terms,
provisions, liens, charges, easements, covenants and restrictions of this Declaration, including, without limitation, all
lien and assessment provisions set forth in this Declaration, and all of the terms, provisions, liens, charges, easements,
covenants and restrictions set forth in this Declaration shall be a permanent charge on, and shall run with, such annexed
property.
In addition to the controls, covenants, conditions, restrictions, easements, development guidelines, charges
and liens set forth in this Declaration, Declarant shall further have the right at its election, without the consent of any
Owner or Owners, to subject any such annexed property to additional controls, covenants, conditions, restrictions,
easements, development guidelines, charges and liens by filing a Supplemental Declaration with the Register of Deeds
covering only such annexed property. The Association shall have the right and authority to enforce all controls,
covenants, conditions, restrictions, easements, and developments contained in such additional declaration. Any such
Supplemental Declaration may supplement, create exceptions to, or otherwise modify the terms of this Declaration as
it applies to the annexed property in order to reflect the different character and intended use of such property.
Except as otherwise provided for herein, no approval from any Member of the Association, or from anyone
else whomsoever, shall be required for Declarant to subject Additional Property to this Declaration.
Section 2.04Withdrawal of Property.Declarant reserves the right to amend this Declaration during the
Development Periodfor the purpose of removing any portion of the Property from the coverage of this Declaration,
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provided such withdrawal is not contrary to the overall, uniform scheme of development for the Property and is not
contrary to the planned residential development requirements of the zoning ordinance in effect for the Property. This
provision includes Declarant’s right to deed over property to any governmental entity as required or deemed necessary
in Declarant’s discretion. Except as otherwise provided for herein, such amendment shall not require the consent of
any Person other than the Owner of the property to be withdrawn, if same is not Declarant.
Section 2.05Other Actsof Declarant. Declarant reserves the right to amend this Declaration during the
Development Period,to merge the Association into other homeowners' or community associations and to combine
this Declaration with the declaration of such association.
Section 2.06Resolution 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 any rules and regulations duly adopted by the Association. If there are any matters of conflict or inconsistencies
in the Bylaws, Articlesof Incorporationand this Declaration, then the provisions of this Declaration shall prevail. In
the event that anything shown on any Plats 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 adispute arises among Owners in regard to the administration of the Property, then the provisions of this Declaration
shall prevail.
EASEMENTS OVER AND AGREEMENTS REGARDING THE PROPERTY.
Section 3.01Easements over Lots. The Lots shall be subject to, and Declarantdoes hereby grant, the following
non-exclusive easements (in addition to such easements as are established by other documents applicable to the
Property):
(a)Easements Shown on Plats. Each Lot shall be subject to all easements, borders, buffers and the like which
are shown and depicted on the Plats as affecting and burdening such Lot.
(b)Entry. Each Lot shall besubject to a perpetual easement,for the benefit of the Association, for the entry
by the authorized agents and representatives of the Association to go upon such Lot under such
circumstances and for such purposes as are described elsewhere in this Declaration.
(c)Encroachments and Overhangs. Each Lot shall have a three (3) foot perpetual easement as measured from
any point on the common boundary between such Lot and any adjoining Lot, or between such Lot and
adjacent Common Areas, for encroachments and overhangs due to the placement or settling of the
improvements constructed, reconstructed or altered thereon, for the benefit of the Association and Owner
of such encroachment or overhang; unless such encroachment or overhang was due to the willful act of
an Owner or the Association.
(d)Slope Control. Each Lot shall be subject to aperpetualeasementfor the use and enjoyment of Declarant,
the Association, any contractors authorized by Declarant, the Members, the Owners, and the successors-
in-title of each,for slope control purposes, including the right to grade and plant slopes and prevent the
doing of any activity that might interfere with slopes or which might create erosion or sliding problems
or which might change, obstruct or retard drainage flow.
(e)Surface Water Drainage. Each Lot shall be subject to a perpetual easement in favor of the Association
and all other Lots for the drainage of surface waters over, under or across such Lot, including any runoff
or carryover of water from one Lot to another, provided that such cross Lot drainage condition was created
by Declarant.
(f)Maintenance Easement. The Association shall have a perpetual, non-exclusive easement over the Lots for
the purpose of performing its maintenance responsibilities hereunder and under the Declaration, which
easement may be exercised by the Association, its officers, directors, employees, agents and contractors,
and entry upon any Lot for such purpose shall not be deemed a trespass.
(g)Utilities. Each Lot shall be subject to a perpetual easement in favor of Declarant, the Association, and
5

authorized contractors, as well as any public utility company, water main, water services, sewer services
or cable company, for the erection, installation, construction and maintenance, repair and replacement of
wires, lines, conduits, pipes, and attachments both above and below ground or attached to any building
wall in connection with the transmission of electricity, gas, water, telephone, community antennae or
satellite dish, television cables andother utilities. The easement rights to which the Lots shall be subject
shall include the right of contractors engaged by the Association to enter upon said Lots from time to time
as necessary in order to perform repair and maintenance work.
Notwithstanding any provisions or restrictions contained in this Declaration to the contrary, Declarant and
itsagents, employees, successors, and assigns, shall bepermitted to maintain and carry on any portion of the Property
which Declarantowns, respectively,such facilities and activities as may be reasonably required, convenient, or
incidental to the development, construction, completion, improvementof the Property, and sale of the Lot(s),
including, without limitation, the installation and operation of development, sales and construction trailers and offices,
signs and models upon any Lot(s) owned by theDeclarant.
THE ASSOCIATION.
Section 4.01The Association. Prior to the date this Declaration has been recorded with the Register of Deeds,
Declarant has caused the Association to be formed, and the Association does now exist, under its Articles of
Incorporation and Bylaws.
The Association is and shall be responsible for the maintenance of the Area of Common Responsibility, the
enforcement of the covenants and restrictions set forth in this Declaration(subject to the provisions hereof), and the
performance of such other duties and services as are required of the Association hereunder or as the Board of Directors
shall deem to be in the best interests of the Members of the Association.
Section 4.02Membership. Every Owner is and shall be a Member of the Association. In no event shall such
membership be severed from the ownership of such Lot.
Section 4.03Classes of Membership; Voting Rights. The Association shall have two classes of voting
membership: Class A and Class B.
(a)Class A. The Class A Members shall be all those Persons holding an interest required for membership in
the Association, as specified in this Section 4.03including the Declarant for any Lots owned by the
Declarant.
Class A Members shall be entitled to vote only on mattersto which this Declaration, the Articles, the By-
Laws, or North Carolina law specifically provide that a vote of the Owners or the Association’s membership
is required. When entitled to vote, Class A Members shall be entitled to cast one (1) vote for eachLot in
which they hold an interest required for membership.
(b)Class B. Declarant shall be the only Class B Member. During the existence of the Class B Membership,
the approval of the Class B Member shall be required for any action requiring a vote of themembership
under the Declaration, Bylaws, Articles, or North Carolina law, in addition to the requisite votes of the
Class A Members. The Class B membership shall automatically terminate and cease to existupon
termination of the Development Period.
The Class "B" membership shall be temporarily suspended during any period that the Declarant does not own
aLot, subject to automatic reinstatement upon Declarant's acquisition of any Lotor annexation of additional
property pursuant to Section 2.03; however, notwithstanding any such temporary suspension, the Declarant
shall continue to have the right to right to appoint, remove and replace the members of the Board of Directors
during the Development Period, as provided in the Bylaws.
Section 4.04Suspension of Membership Rights. The membership rights of any Member of the Association,
including the right to vote, may be suspended by the Board of Directors pursuant to the authority granted in the Bylaws.
Any such suspension shall not affect such Member’s obligation to pay assessments coming due during the period of
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such suspension and shall not affect the permanent charge and lien on the Member's Lot in favor of the Association.
Section 4.05Meetings of the Membership. All matters concerning the meetings of Members of the Association,
including the time at which and the manner in which notice of any said meeting shall be given to Members, the quorum
required for the transaction of business at any meeting, and the vote required on any matter, shall be as specified in
this Declaration, or in the Articles of Incorporation or the Bylaws, or by law.Notwithstanding anything to the contrary,
during the Development Period, there shall be no obligation for meetings of the Board to be open to Members of the
Association. Additionally, in the event that a meeting of the Board is open to the Members, there shall be no obligation
for the Board to announce the nature of the business to be discussed in executive session. Following the Development
Period, the Board may determine whether meetings of the Board shall be open to the Members of the Association.
Section 4.06Control by Declarant.Except as otherwise provided for herein, 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 during the Development Period. 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 Class A Members, including Declarant if itowns 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 Class A Membersshall 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.
Section 4.07Association Acts Through Its Board of Directors. Whenever approval of, or action or inaction by,
the Association is referred to or called for in this Declaration, such action, inaction or approval shall be by the Board
of Directors of the Association, unless it is specifically stated in this Declaration, the Articles of Incorporation or the
Bylaws with respect to such action, inaction or approval that the Members of the Association, or the Owners of Lots,
must voteor approve the same. No member of the Board of Directors of the Association or any officer of the
Association (including, without limitation, any such individual who shall have been appointedby Declarant) shall be
personally liable to any owner of any Lot for any mistake of judgment or for any other act or omission of any nature
whatsoever, and shall be liable to the Association only forany acts or omissions found by a court of competent
jurisdiction to constitute gross negligence,compensation for services beyond reimbursement for expenses, acting in
badfaith, obtaining an improper personal benefitin transaction involving the Association,liability from the operation
of a motor vehicle, unlawful loans or distributions from the Association, or fraudagainst the Association.
Section 4.08Professional Management. The Association may, and upon termination of the Development Period
shall,retain professional management to assist the Board inmanagingthe affairs of the Association, or any part
thereof, on such terms as the Board of Directors deems to be in the best interests of the Association.
ASSOCIATION PROPERTY
Section 5.01Common Areas and Association Property. The Declarantshall have the right to transfer and convey
to the Association any portion of the Property. All portions of the Property which the Declarant transfers to the
Association shall thereafter constitute Common Areas. Said right may be exercised by the Declarantany time, and
from time to time, until five (5) years after the end of the Development Period.
The Association will govern useof the Common Areas and may promulgate rules and regulations related to
such use. The Declarant or the Association may authorize persons who are not Owners to use the Common Areas or
portions of the Common Areas.
The Common Areas shall be conveyed to the Association free of debt encumbrance, and subject to easements
and encumbrances recorded with the Register of Deeds, irrespective of whether the deed of conveyance shall make a
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specific reference to such rights and easements. COMMON AREAS SHALL BE CONVEYED TO THE
ASSOCIATION WITHOUT WARRANTY -“AS IS”AND “WHERE IS”.
Section 5.02Limited Common Areas. Certain portions of the Common Area may be designated as “Limited
Common Area”and reserved for the exclusive use orprimary benefit of less than all of the Owners.By way of
illustration and not limitation, Limited Common Areas may include Amenities, landscaped areas, and other portions
of the Common Area. All costs associated with maintenance, repair, replacement, and insurance of a Limited Common
Area shall be an Association expense allocated, in any reasonable manner established by the Association, among the
Ownersof Lots for the benefit of which such Limited Common Areas are reserved.
Limited Common Areas may be designated as such in the deed conveying such area to the Association or on
the Plat relating to such Common Area; provided, however, any such assignment shall not preclude Declarant from
later assigning use of the same Limited Common Area to additional Lots, so long as Declarant has a right to subject
additional property to this Declaration pursuant to ARTICLE II.
After recording the initial deed conveying such area to the Association or the Plat relating to such Common
Area, a portion of the Common Area may be assigned as Limited Common Area and Limited Common Area may be
reassigned upon approval of the Declarant during the Development Period and thereafter by the Board of Directors
with the approvalof voting Members representing a majority of the total votes in the Association. As long as Declarant
owns any property subject to this Declaration or which may become subject to this Declaration in accordance with
ARTICLE II, any such assignment or reassignment shall also require Declarant’s written consent.
Section 5.03Member’s Rights in Association Property. Every Owner of any Lot shall have a non-exclusive
right and easement of enjoyment and use in and to the Common Areasand such right and easement shall be appurtenant
to, and shall pass with, the title to the Lot(s) owned by such Owner. Such right and easement of enjoyment and use
are and shall be subject to the limitations and easements which are described in this Declarationand to the right of the
Association to promulgate reasonable rules and regulations regarding the use of Common Areas, and the right of the
Associationto suspend the enjoyment rights of the Owner and occupants of any Lot during any period in which any
assessment which is due to the Association from such Owner remains unpaid, and such period as the Board of
Directors may consider appropriate for any infraction of the terms of this Declaration or the Associations’ published
rules and regulations, subject to the limitations of the Act. In addition, the Board of Directors may permit other
persons who are not residents of any Lots to use the Common Areasupon such terms and conditions, and for the
payment of such fees, as shall be determined by the Board of Directors.
Section 5.04Use of the Encore at Streamside Amenities.The Amenities are owned by the Association for the
benefit of the Owners(or the Owners of such Lots as to which Limited Common Areasare assigned pursuant to
Section 5.02)and their family members, guests, invitees and lessees (the “AmenityUsers”). The Amenities maybe
used by the Amenity Users solely for recreational and social purposes and activities. Use of the Amenities shall be
subject to the terms of this Declaration, and the rules, regulation, policies and procedures of the Association with
respect to use of the Amenities as may be published from time to time.
Each Owner, by acceptance of title to a Lot shall be deemed to have acknowledged and agreed that Declarant
has not made any representations or warranties regarding the right of the Amenity Users to use the Amenities, except
as is specifically set forth in this Declaration.
ANY INDIVIDUAL USING THE AMENITIES SHALL DO SO AT HIS OWN RISK AND HEREBY
HOLDS DECLARANTAND THE ASSOCIATIONHARMLESS FROM AND AGAINST ANY CLAIM OR LOSS
ARISING FROM SUCH USE.
Section 5.05Rules and Regulations.The Association shall be entitled to adopt and enforce reasonable rules and
regulations related to the use and operation of the Property.All users of the Property, specifically including but not
limited to the Amenities,shall be subject to such rules and regulations, provided any such rules and regulations are
not applied or enforced in a discriminatory manner. Enforcement of such rules and regulations can include the right
to prohibit use, deny access to facilities, and suspend voting rights of persons including but not limited to Amenity
Users,for violations. The rules and regulations so promulgated shall, in all respects, be consistent with the provisions
of this Declaration, the Articles of Incorporation, and the Bylaws.
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Section 5.06Condemnation. If any part of the Common Areas are either: (a) taken by any authority having the
power of condemnation or eminent domain, or (b) conveyed in lieu of and under threat of condemnation by the Board
acting on the written direction of at least eighty percent (80%)of the Class A votes (and, if during the Development
Period, the written consent of Declarant), then the Association shall restore or replace the improvements on the
remaining land included in the Common Areas to the extent available unless, within sixty (60)days after such taking,
at leastsixty-seven percent(67%)of the Class A votes (and Declarant, if during the Development Period) otherwise
agree. If the taking or conveyance does not involve any improvements on the Common Areas, or if a decision is made
not to repair or restore, or if net funds remain after any such restoration or replacement is complete, then such award
or net funds may be used by the Associationfor such purposes as the Board shall determine.
Section 5.07Damage or Destruction. If any improvements locatedon any Common Areas are damaged or
destroyed on account of the occurrence of any casualty, the Board of Directors shall proceed with the filing and
settlement of all claims arising under any policy of insurance maintained by the Association with respect to such
improvements and shall obtain reliable and detailed estimates of the cost of repair or reconstruction of the damaged
or destroyed improvements.
Any such damage or destruction shall be repaired or reconstructed unless it shall be decided, within ninety
(90) days after the occurrence of casualty, by at least 67% of the Class A votes (and by Declarant, if during the
Development Period), not to repair or reconstruct such damage. If that it shall be decided not to repair or reconstruct
some damage or destruction, the proceeds of any insurance as may become payable to the Association as a result of
such damage or destruction shall be retained by and for the benefit of the Association and placed in a capital
improvements account. This is a covenant for the benefit of Mortgagees and may be enforced by the Mortgagee of
any affected Lot. If the insurance proceeds are insufficient to cover the costs of repair or reconstruction, the Board of
Directors may, without a vote of the Class A Members, levy special assessments to cover the shortfall.
Section 5.08Conveyance and Encumbrance of Common Area. Any conveyance or mortgaging of the Common
Areas will require the consent of at least eighty percent (80%) of the Class A votes and, if during the Development
Period, the consent of Declarant. Notwithstanding anything to the contrary in this Section, however, the Association,
acting through the Board of Directors, may grant easements over the Common Areas for installation and maintenance
of utilities and drainage facilities, roads and pathways, and for other purposes not inconsistent with the intended use
of the Common Areas, without the approval of the Membership.
Section 5.09Taxes and Governmental Assessments. The Association shall pay when due, and in any case before
the accrual of penalties thereon, all taxes, assessments, license fees, permit feesand other charges imposed by any
governmental authority in connection with the Association’s ownership or operation of the Common Area. Provided,
however, that the Association may institute an appropriate legal proceeding for the purpose of contesting orobjecting
to the amount or the validity of any such tax, assessment, fee, or charge by appropriate legal proceedings. If the
Association fails to pay any governmental charge when due and does notcontest any governmental charge in a timely
and appropriate legal proceeding, then each Owner shall become personally obligated to pay to the governmental
authority imposing such charge a portion of the charge in an amount determined by multiplying the total charge by a
fraction, the denominator of which is the total Lots and the numerator of which is the Lots owned by the Owner for
whom the calculation is being performed (the “Owner's Share”). If the Owner does not pay the Owner's Share within
thirty (30) days following actual notice to the Owner of the Owner's Share, then the Owner's Share shall become a
continuing lien on the property owned by the Owner, and the governmental entity may bring an action at law against
the Owner to obtain payment of the Owner's Share or may foreclose the lien against the property of the Owner.
ASSESSMENTS
Section 6.01Creation of Lien and Personal Obligation. Each Owner, by acceptance of a deedconveying title to
anyLot, covenants and agrees to pay to the Association all assessments and charges which are levied by the
Association against the Lot(s) owned by such person in accordance with the terms and provisions of this Declaration.
All sums lawfully assessed by the Association against any Lot and the Owner thereof,together with interest
(computed from its due date at a rate of 10% per annum or such higher rate as the Board may establish by resolution
not to exceed 18% per annum) thereon, late charges, and the costs of collection thereof, shall, from the time the sums
become due and payable, be the personal obligation of the Owner of such Lotand constitute a continuing lien in favor
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of the Association on such Lotprior and superior to all other liens whatsoever except: (1) Liens for ad valorem taxes
on the Lot; (2) The lien of any first priority mortgage covering the Lot and the lien of any mortgage recorded prior to
the recording of this Declaration; and (3) The lien of any secondary purchase money Mortgage covering the Lot,
provided that neither the grantee nor anysuccessor grantee of such Mortgage is the seller of the Lot. The covenant to
pay assessments herein stated is and shall be a covenant running with land.
Section 6.02Purposes of Assessments. The assessments levied by the Association pursuant to this Sectionshall
be used to pay the costs and expenses which the Association shall incur in connection with the performance of its
duties and responsibilities pursuant to the Act, this Declaration, the Articles of Incorporation and the Bylaws (such
costs and expenses being herein referred to as the “Annual Expenses”). Without limiting the generality of the
foregoing, the Annual Expenses shall include the costs of: payment of all costs and expenses incurred by the
Association in connection with the maintenance of theArea of Common Responsibility and the Association’s other
operations; payment of the premiums for all insurance, fidelity and other bonds which shall be obtained by the
Association; the payment of the fees of such management firms as the Board of Directors shall employ; payment of
fees for the provision of such professional services as the Board of Directors shall determine to be required by the
Association, including but not limited to legal, accounting and architectural services; and such other purposes as the
Board of Directors shall deem necessary or desirable to promote the health, safety and welfare of the Association and
its Members.
Section 6.03Determination of Annual Assessment and Shares Thereof. Prior to the commencement of each
fiscal year of the Association (said fiscal year being specified in the Bylaws) or at any time it deems best, the Board
of Directors shall estimate the total amount of the Annual Expenses which are anticipated to be incurred by the
Association during such fiscal year and shall determine the amount which will be deposited during such fiscal year
into reserve funds maintained by the Association. The Board of Directors shall thereupon adopt a budget for the
Association's expenditures and reserves based upon such estimate and providing for the total annual assessment to be
levied against theMembers of the Association for such fiscal year (the total assessment which shall be so determined
and levied for any fiscal year is herein referred to as the “Total Annual Assessment”).
TheOwner of eachImproved Lot shall pay a portion of the Total Annual Assessment that will be calculated by
multiplying the Total Annual Assessment by a fraction, the denominator of which will be the total number ofLots and
the numerator will be the number of Lots which that Owner owns. For so long as there are Unimproved Lots, the
owner of each Unimproved Lot shall pay a portion of the Total Annual Assessment equal to ten percent (10%) of the
Annual Assessment levied on each Improved Lot.The result may be adjusted by the Board by up to One Hundred
and 00/100 Dollars ($100.00) for the purpose of creating whole dollar amounts for payments, equal periodic payments
and avoiding losses due to rounding. During the Development Period, Declarant shall fund the portion of the Annual
Assessment not allocated to either the Improved Lots or Unimproved Lots.
Within 30 days following the Board's adoption of any new or revised budget under this Section,the Board of Directors
shall send a summaryof the budget, together with a written notice of the amount of the Annual Assessment so
determined for such fiscal year and the amount of such Annual Assessment which shall be levied against each Lot, to
the Owner of every Lot. The budget shall be accompanied by notice of the date, time and location of a meeting to
consider ratification, which meeting shall be set by the Board to occur no less than 10 nor more than 60 days after
mailing of the budget summary and notice. The notice shall include a statement that the meeting may be held and the
budget may be ratified without a quorum being present. Thebudget shall be deemed ratified unless rejected at the
meeting by Owners of at least 75% of the total number of Lots then subject to assessment hereunder. If any proposed
budget is rejected or the Board fails for any reason to determine the budget for any year, then the budget most recently
in effect shall continue in effect until a new budget is determined. The Board may revise the budget and adjust the
Annual Assessment from time to time during the year, subject to the notice and ratification requirements set forth
above..
The amount of theAnnual Assessment as determined hereundershall be due and payable to the Association in a single
installment or in such multiple installments as the Board of Directors shall determine and shall be paid to the
Association when due without further notice.
Section 6.04Special Assessments. If for any reason, including non-payment of any assessments to the
Association by the persons liable therefore, the budget adopted by the Board of Directors for any fiscal year shall
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prove to be inadequate to defray the Annual Expenses for such fiscal year, or if the Board of Directors shall determine
that it is in the best interests of the Association to levy a special assessment to pay the costs of any capital
improvements or capital repairs, the Board of Directors shall have the authority to levy a special assessment against
the Lots and the Owners thereof to raise such needed funds. Any special assessment levied by the Board of Directors
pursuant to the provisions of this Section shall be payable at such times and such installments as the Board of Directors
shall determine. Each Improved Lot shall be liable for the payment of an equal share of every special assessment
which shall be levied by the Association pursuant to the provisions of this Section.
Section 6.05Special Assessment for Working Capital Reserve.At the time of closing of the initial sale of each
ImprovedLot,a sum as determined by the Board, in their sole discretion, from time to timeshall be collected from
the purchaser of such Lot and transferred to the Association as part of its working capital. The purpose of the working
capital fund is to ensure that the Association will haveadequate cash available to meet its initial operating expenses
or to acquire additional equipment or services deemed by the Board of Directors to be necessary or desirable. Amounts
paid to the Association pursuant to this Section shall not be considered as an advance payment of any regular
assessment.
Section 6.06Specific Assessments. The Board may levy specific assessments against individual Owners (i) for
the purpose of paying for the costs of any construction, reconstruction, repair or replacement of anything maintained
by the Association, which is occasioned by the act(s) of individual Owner(s), their family, pets or their invitees, and
not the result of ordinary wear and tear, (ii) subject to the notice and hearing procedures in the Act, for the payment
of fines, penalties or other charges imposed against an individual Owner relative to such Owner’s failure tocomply
with the terms and provisions of this Declaration, the Bylaws, or any rules or regulations promulgated hereunder, or
(iii) for any common expenses, other than expenses for the maintenance of the Common Areas, which benefit less
than all of the Lotsor which significantly disproportionately benefit all Lots (which expenses may be specially
assessed equitably among all of the Lots which are benefited according to the benefit received); provided that in no
event shall Declarant be obligated to pay any specific assessment. Failure of the Board to exercise its authority under
this Section shall not be grounds for any action against the Association or the Board of Directors and shall not
constitute a waiver of the Board’s right to exercise its authority under this Section in the future with respect to any
expenses.
Upon the establishment of a specific assessment under this Section, the Board shall send written
notice of the amount and due date of such specific assessment to the affected Owner(s) at least thirty (30) days prior
to the date such specific assessment is due.
Section 6.07Effect of Non-Payment of Assessments; Remedies of the Association.
(a)Delinquency Date. Any assessments, regular, special or specific, which are not paid by the due date are
delinquent as of midnight of the due date.
(b)Automatic Remedies.Except to the extent otherwise expressly required by law or unless otherwise agreed
in writing by the Boardof Directors, if any assessments are not paid by the due date, then:
(i)Late charges(no greater than $100.00 per violation per day in which the same violation
remains uncured), interest (computed from its due date at a rate of 10% per annum or such
higher rate as the Board may establish by resolution not to exceed 18% per annum)from
the due date, and all compliance costs (including reasonable attorney's fees), will be added
to and included in the amount of such assessment except as otherwise expressly provided
in the Association’s current Assessment Collection Policy as provided below;
(ii)The Association may notify any credit bureau and/or any mortgagee orother lienholder
with respect to the applicable Lot as to any default, including delinquency in payment of
assessments and any other monetary amounts due to the Association; and/or
(iii)The Association may exercise any other rights and remedies and institute and prosecute
such other proceedings as it deems necessary to collect all amounts due.
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(c)Elective Remedies After Notice. If any assessments are not paid within thirty(30) days after the due date,
then the Association may elect to exercise any or all of thefollowing remedies, in addition to and not in
lieu of the automatic remedies as above provided, and without prejudice to any other rights or remedies,
provided that notice and opportunity to be heard is first given:
(i)Acceleration of Assessments. The Association may accelerate, through the end of the year
in which notice of default and acceleration is given and for an additional six(6)month
period thereafter, all regular assessments and all special assessments (including any
installment payments) dueor to become due during the acceleration period; provided, the
maximum period of acceleration may not exceed twelve months after the first day of the
month following the month in which notice of default and acceleration is given. All such
accelerated assessments are deemed to be special assessments as to the applicable Lot and
Owner thereof.
(ii)Suspension of Services. To the fullest extent allowed by law, the Association may suspend
until all assessments (including all special assessments) are paid in full,all rights of the
delinquent Owner, the Owner's tenants, and the related parties of either, to (i) receive any
and all services provided by the Association to the applicable Lot and any improvements
thereon, and/or (ii) use, employ or receive the benefitsof any Common Areas, including
all rights to use of any and all recreational facilities, if any. Notwithstanding the foregoing,
no Owner, Owner’s tenant, or any of their related parties may be denied any rights of
ingress, egress or regress to or from theProperty.
(d)Action for Debt; Foreclosure, Including Expedited Foreclosure.
(i)Each Owner, by acquisition of any Lot within the Propertyor any right, title or interest
therein, expressly grants to and vests in the Association: (x) the right and power to bring
all actions against each Owner, personally for the collection of all delinquent assessments
as a debt; (y) the right and power to foreclose the Association's continuing lien for
assessments by all methods available for the enforcement of a mortgage, deed of trust or
any other contractual lien, including foreclosure by an action brought in the name of the
Association either judicially or non-judicially by power of sale; and (z) a continuing power
of sale in connection with the non-judicial foreclosure of the Association's continuing lien
for assessments as herein provided.
The Board of Directors or the then President of the Associationmay appoint, in writing, at
any time and from time to time, an officer, agent, trustee, or attorney of the Association
(the"Trustee") to exercise the power of sale on behalf of and as the agent of the
Association, including without limitation to deliver and file the notices required by the
Chapter 47F of the North Carolina General Statutes (the “Code”), and to conduct the sale
and to otherwise comply with said statute. The Board of Directors or the then President of
the Association may, at any time and from time to time, remove any such Trustee and
appoint a successor or substitute Trustee without further formality than an appointment and
designation in writing. Except as otherwise provided by this Declaration, the Association
will exercise its power of sale pursuant to the Code. The Association has the right and
power to bid on any Lot at any foreclosure sale, either judicial or non-judicial, and to
acquire, hold, lease, mortgage, or convey the same.
If directed by the Association to foreclose the Association’s continuing lien, Trustee will,
either personally or by agent, give notice of the foreclosure sale as required by the Code as
then in effect, and sell and convey all or part of the applicable property “AS IS”, “WHERE
IS”, and “WITH ALL FAULTS” to the highest bidder, subject to prior liens, encumbrances
and any other matters of record and without representation or warranty, express or implied,
by Trustee or the Association. The Association must indemnify Trustee and hold Trustee
harmless from and against all costs, expenses, and liabilities incurred by Trustee for acting
in the execution or enforcement of the Association’s lien or otherwise pursuant to this
Declaration, including indemnification for all court and other costs, andattorney’s fees
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incurred by Trustee in defense of any action or proceeding taken against Trustee regarding
any of the foregoing.
The filing of suit to collect any sums due hereunder or to foreclose the Association's
continuing lien for assessments may never be considered an election so as to preclude
exercise of any other rights or remedies, including without limitation foreclosure under
power of sale before or after a final judgment. After foreclosure, either judicial or non-
judicial, the former Owner and anyone claiming under the former Owner must immediately
surrender possession to the purchaser. If not, the former Owner and anyone claiming under
the former Owner will be mere tenants at sufferance of the purchaser, and the purchaser
may obtain immediate possession pursuant to any actions or remedies permitted by law,
including an action for forcible detainer or eviction to be maintainable by the purchaser.
Each owner, by acquisition of any Lot, specifically covenants and stipulates as to each and
every Trustee's foreclosure sale that the recitals in any appointment or designation of
Trustee, any conveyance by the Trustee and any affidavit of the Trustee or the Association
related thereto is full proof and evidence of the matters therein stated, that all prerequisites
of the foreclosure sale are presumed to have been performed, and that the foreclosure sale
made under the powers herein granted is a perpetual bar against the Owner(s) of the Lot(s)
sold and their heirs, executors and administrators, successors and assigns, and any Persons
whatsoever claiming or to claim thereunder.
Without limitation of any other provisions of this Declaration, Declarant, during the
DevelopmentPeriod, or the Boardof Directorsthereafter, are hereby specifically
authorized to amend this Sectionin any manner deemed necessary or appropriate as
regarding or to conform to applicable provisions or requirements of the North Carolina
General Statutes and/or applicable rules pertaining thereto without the joinder or consent
of any Owner or any other Person.
(e)Extinguishment of Inferior Liens. Foreclosure of the Association’s continuing lien for assessments
terminates, extinguishes and forever discharges all inferior or subordinate liens and encumbrances (being
all liens and encumbrances except as provided bySection 6.08) as to the affected Lot. The foregoing
applies to judicial and non-judicial foreclosure of the Association’s continuing lien for assessments
regardless of whether or not the holder of the inferior or subordinate lien or encumbrance is made a party
to or given notice of any proceedings in connection therewith, including without limitation to the fullest
extent permitted by law whether or not made a party to or given notice of any judicial foreclosure suit and
any other proceedings in connection therewith.
Section 6.08Effect of Foreclosure or Bankruptcy.The effect of judicial or non-judicial foreclosure of a lien
which is superior to the Association’s continuing assessment lien under this Declaration, or acceptance of a deed in
lieu thereof, and the effect of the discharge of an Owner in bankruptcy is determined as of the date of foreclosure, the
date of signing of a deed in lieu which is accepted by the grantee or the date of filing of the bankruptcy in which the
Owner is discharged, as the case may be (the “Discharge Date”). Foreclosure or acceptance of a deed in lieu as
aforesaid does not relieve the former Owner from the personal obligation for payment of assessments due as of the
DischargeDate, but does release the Association’s continuing assessment lien as to and only as to assessments due
prior to the Discharge Date. The purchaser at foreclosure or grantee under a deed in lieu and an Owner discharged in
bankruptcy is also relieved fromany obligation for payment of assessments due prior to the Discharge Date, but is
obligated to pay all assessments assessed or assessable from and after the Discharge Date and the Association’s
continuing assessment lien fully secures payment of said assessments. For purposes of the foregoing “assessments
assessed or assessable” means (i) prorated regular annual assessments based on the number of months remaining in
the calendar year in which the Discharge Date occurs regardless of whether the applicable regular annual assessment
is payable in advance annually, semi-annually or quarterly, and (ii) any installments for special assessments so payable
which become due after the Discharge Date.
Section 6.09Revival of Assessment Lien.The Association’s assessment lien is automatically revived as to any
Owner who reacquires ownership of the applicable Lot within two (2) years after the Discharge Date (as defined in
the immediately preceding Section) to the same effect as if none of the events causing the Discharge Date to occur
13

had occurred if ownership is reacquired from the purchaser at foreclosure, the grantee under the deed in lieu of
foreclosure, or any successor in title to such purchaser or grantee and the reacquisition of ownership constitutes a
fraudulent transfer under Chapter 39 of the Codeor under any other state or federal statutes or laws.
Section 6.10No Merger.The Association’s assessment lien is not, by merger or otherwise, extinguished or
otherwise effected by acquisition of ownership of a Lot at any time and in any manner by the Association except as
otherwise expressly agreed in writing by the Association.
Section 6.11Assessments as Independent Covenant.The obligation to pay assessments is a separate and
independent covenant and contractual obligation on the part of each Owner. No off-set, credit, waiver, diminution, or
abatement may be claimed by any Owner to avoid or diminish the obligation for payment of assessments for any
reason, including, by way of illustration but not limitation, (i) by nonuse of any Area of Common Responsibility or
abandonment of a Lot, (ii) by reason of any alleged actions or failure to act by Declarant, the Association, the Board,
the DRC, or any of their related parties, whether or not required under this Declaration, (iii) for inconvenience or
discomfort arising from the making of repairs or improvements which may be or are the responsibility of Declarant,
the Association, the Board, the DRC, or any of their related parties, or (iv) by reason of any action taken by the
Declarant, the Association, the Boardof Directors, the DRC, or any of their related parties, to comply with any law,
ordinance, or any order or directive of any governmental authority, or pursuant to any judgment or order of a court of
competent jurisdiction.
Section 6.12Assessment Collection Policies.The Association will adopt assessment collection policies
consistent with this Declaration and in accordance with the Code. The initial Association Assessment Collection
Policy will be adopted by Declarant. Declarant,during the DevelopmentPeriod,and the Board,at any time,may from
time to time adopt and amend such other assessment collection policies as either may deemto be necessary or
appropriate, including with regard to or concerning the Association Assessment Collection Policy as initially adopted
by Declarant.
Section 6.13Budget Deficits During DevelopmentPeriod.Declarant may advance funds to the Association
sufficient to satisfy the deficit, if any, in any fiscal year between the actual operating expenses of the Association
(exclusive of any allocation for capital reserves) and the annual and special assessments for such fiscal year. Such
advances shall be evidenced by promissory notes from the Association in favor of Declarant and shall be paid back to
Declarant if and to the extent that sufficient funds are generated by assessments in future years until such time as
Declarant no longer has the authority to appoint the directors and officers of the Association.Declarant may, but is
not obligated to, forgive any promissory notes from the Association made pursuant to this Section 6.13.
Section 6.14Failure to Assess.The failure of the Board to fix the assessment amounts or to deliver to each
Owner the assessment notice shall not be deemed a waiver, modification or release of any Owner of the obligation to
pay assessments. In such event, each Owner shall continue to pay assessments on the same basis as for the last year
for which an assessment was made until a new assessment is made, at which time any shortfalls in collections may be
assessed retroactively by the Association.
MAINTENANCE
Section 7.01Association’s Maintenance Responsibility.
(a)Lot Maintenance.The Association shall be responsible for maintaining the grass, plants, shrubs,
trees, and landscaping as described in Exhibit “B”, attached hereto and incorporated by reference(hereinafter the
“Yard Improvements”). The Association also may maintain any Yard Improvements that are installed by an Owner
with prior written approval and consentof the Association (but only to the extent that such consent specifically
provides that the Association will maintain such added landscaping), provided, however, that:(i) if an Owner installs
a fence on their Lot, the Association, in the sole discretion of the Board, shall determine whether to maintain any Yard
Improvements inside of such fence, (ii) the Association’s obligation to maintain shall not include the obligation to
replace any plant, shrub or tree for any reason; and (iii) the Association shall not be responsible for repair or
replacement of any Yard Improvements when such repair or replacement is necessitated by work done by or at the
request of any Owner or any utility company or governmental authority. If a common irrigation system that provides
irrigation for the Lots is installed by Declarant, the Association shall maintain, repair and operate such system in good
14

condition, subject to the requirements of the applicable governmental authorities, including but not limited to, any
restrictions imposed or recommended during periods of drought. If individual irrigation systems are installed to serve
the Lots individually, the Association may set the times atwhich such irrigation systems will water a Lot's landscaping,
the duration of such watering and may control an Owner's use of such system, all without incurring any cost for water
or other utility charge.
(b)Common AreaMaintenance.The Association shall keep in good repair the Common Area, specifically
including but not limited to the pool, the clubhouse, and associated improvements, andthe cost of maintaining,
repairing and replacingthe Common Area will be assessed pursuant to ARTICLE VI.
Section 7.02Owner’s Maintenance Responsibility.Except to the extent the Association is responsible for
maintenance as provided in this Declaration, all maintenance of the Lot and any improvements thereon shall be the
responsibility of the Owner. The Owner of each Improved Lotmust maintain the exterior of theDwellingon such
Lot, garage, and all other buildings, structures, fences, walls, recreational equipment, landscaping, and improvements
located upon suchOwner’s Lot, in an attractive, sound and well maintained condition, including proper maintenance
and repair as needed of paint, bricks, siding, roofs, exterior walls, driveways, parking areas and all other exterior
portions of the Owner’s residence and garage. Without limitation of the foregoing, each Owner must provide proper
repair and maintenance as and when needed as follows:
(a)The exterior paint on suchOwner’s Dwelling must be maintained so that no portion thereof peels, scales
or cracks excessively, and all painted portions remain neat and free of mildew and discoloration. NO
CHANGE IN THE EXTERIOR COLOR SCHEME OF A DWELLING AS ORIGINALLY
CONSTRUCTED (INCLUDING AS TO THE ORIGINAL EXTERIOR PAINT COLOR OR COLORS
OR THE CONFIGURATION OF THE COLORS) IS PERMITTED WITHOUT PRIOR WRITTEN
APPROVAL FROM THE DRC.
(b)The windows must be maintained so that no caulking thereon is chipped or cracked and no window panes
are cracked or broken. All windowsills, door jams and thresholds, framing and trim for all windows and
exterior doors and all hinges, latches, locks and all other hardware which are part of and/or necessary to
the proper functioning of all windows and exterior doors must be maintained so that all remain whole,
sound, in a neat and attractive condition and fully operational.
(c)All exterior doors, including garage doors, must be maintained, repaired, replaced and/or repainted as
needed to prevent an unkemptor unsightly appearance, to prevent leaning or listing, and such as to
maintain same in proper working condition, including replacement as needed of damaged or dented garage
door panels and any cracked or broken glass in any door.
(d)All exterior surfaces on suchOwner’s Dwelling, including siding, brick, stone and stucco, as applicable,
must be properly maintained at all times.
(e)All exterior surfaces of suchOwner’s Dwelling, including the roof and all walls, windows and exterior
doors, must be periodically cleaned as needed to prevent mold, mildew or other discoloration.
(f)The roof on suchOwner’s Dwelling must be maintained to prevent sagging, to prevent leaks, so that all
shingles, tiles or slates are properly secured, curled shingles or damaged shingles, tiles or slates are
replaced and no worn areas or holes are permitted to remain, and such that the structural integrity and
exterior appearance of the roof is maintained. The appearance of the roof may not be changed by any
such maintenance without the express written approval of the DRC.
(g)The rain gutters and downspouts on suchOwner’s Dwelling, if any, must be maintained so that all are
properly painted or treated to prevent rust and corrosion, are properly secured to roof, eaves, gables or
exterior walls (as the case may be), are maintained without leaks, and are promptly repaired or replaced
if dented, cracked,or otherwise damaged.
(h)All concrete areas on suchOwner’s Lot, including sidewalks and driveway, must be maintained so that
all cracks are appropriately patched or surfaced as they appear, expansion joints are maintained, repaired
or replaced, as needed, and oil, grease and other stains are removed as they appear, and all such areas must
15

be kept free of weeds, grass or other vegetation.
(i)All fences or walls erected on suchOwner’s Lot must be maintained to prevent any listing or leaning, and
all broken or damaged members and all holes and cracks must be repaired so that no portion thereof is
permitted to rot or decay. WOODEN FENCES MUST BE STAINEDIN ACCORDANCE WITH DRC
REQUIREMENTS.
(j)All recreational equipment, which may be installed if and only if approved by the DRC, must be
maintained to prevent any unsightly or unkemptcondition.
(k)All grass, shrubbery, trees, flower beds, vegetation and all other landscaping, either natural or artificial,
on aLot which is not maintained by the Association must be properly irrigated and otherwise properly
maintained by and at the sole cost of the Owner of such Lot at all times in accordance with the seasons.
This maintenance includes without limitation all maintenance as is reasonably necessary to obtain and
maintain on a consistent and continuing basis a sanitary, healthful and attractivecondition and appearance
and to eliminate any condition which may create any unsanitary condition or become a harborage for
rodents, vermin or other pests, including, to the extent no provided by the Association,regular mowing
and edging of grass, and, if any grass or shrubs become diseased or die, prompt replacement thereof with
grass or shrubs of like kind and quality. IN ANY CASE WHERE AN IMPROVEDLOT ABUTS A
STREET, THE OWNER MUST IRRIGATE AND MAINTAIN ALL LANDSCAPING TO THE
STREET CURB REGARDLESS OF WHETHER THE LOT LINE IN FACT EXTENDS TO THE
STREET CURB, IF AND TO THE EXTENT ANY SUCH AREA IS NOT MAINTAINED BY THE
ASSOCIATION.
Section 7.03Adjacent or Adjoining Owners. No Owner or their tenant shallallow any condition to exist or fail
or neglect to provide any maintenance which materially and adversely affects any adjoining or adjacent Lot, any Area
of Common Responsibility, or any improvements on any such Lot or the Area of Common Responsibility.
Section 7.04Remedy for Owner’s Failure to Maintain. In the event the Board determinesthat (i) an Owner may
have or has failed or refused to discharge properly the Owner’s maintenance obligations as provided in this Article,
or (ii) the need for maintenance, repair, or replacement which is the responsibility of the Association hereunder may
have or has been caused through the willful or negligent act or omission of an Owner, the Owner’s tenants, ortheir
respective related parties, then the Board may conduct inspections of any affected Lot, the exterior of the residence
and all other buildings thereon, and all other structures and improvements thereon (a "Compliance Inspection") and/or
perform the repair, replacement or maintenance (the "Required Work") in accordance with this Section.
The Board must give written notice of intent to conduct a Compliance Inspection and/or to perform
Required Work. The notice may be given by posting on the front door of the Dwelling at the applicable Lot regardless
of any other address maintained by the Owner. Except in the case of an “emergency”, the notice must give the
applicable Owner not less than ten (10) days to schedule a Compliance Inspection and/or to performRequired Work
(or to commence and thereafter proceed with diligence to completion of Required Work which cannot be reasonably
completed in ten (10) days), failing which the Board may proceed without further notice. For the purposes of this
Section 7.04, “emergency” means (i) any condition which may or does cause an imminent risk of infestation by
termites, rats or other vermin, or any other health, fire or safety hazard, (ii) any condition which may or does cause
water infiltration in to another Lot, Common Areas or any improvements located thereon, and (iii) any other thing,
condition or exigent circumstances which may or does present an imminent risk of harm or damage to any Lot or Area
of Common Responsibility, or any improvements thereon or to any Owners or occupants thereof. In the case of an
emergency the Board may proceed immediately with any Required Work as either deems necessary to abate the
emergency, but will thereafter proceed as aforesaid.
All costs and expenses of conducting a Compliance Inspection as to which a violation is determined
to exist and all costs and expenses of Required Work performed by the Board will be assessed against the applicable
Lot and the Owner thereof as a special assessment which must be paid within ten days after notice of same is given to
the applicable Owner. The good faith determination by the Board as to the need for a Compliance Inspection and as
to all aspects of Required Work is final and conclusive, and extends to any condition as to such Lot or which adversely
affects any other Lot or Area of Common Responsibility. The Association or the Board and their related parties are
not liable for trespass or anyother tort or claim for damages in connection with any actions or failure to act pursuance
to this Section.
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Section 7.05Damage or Destruction.
(a)Required Repair; Permitted Removal. Whether or not insured, in the event of damage, casualty loss or
other destruction to all or any portion of a Dwelling, garage, building, structure or other improvement (a
“Damaged Improvement”), any Damaged Improvement must be repaired, reconstructed or replaced in its
entirety, or it must be demolished and removed as hereafter provided.
(b)Manner of Repair or Removal. All repair, reconstruction or replacement of any Damaged Improvement
must be performed in such manner as to restore the Damaged Improvement to substantially the same
exterior dimensions and appearance (including as to color, type and quality of materials and as to
architectural style and details) as, and must be located in substantially the same location as, when the
Damaged Improvement was originally constructed, or to such other appearance and condition as approved
by the DRC. If the Damaged Improvement is not repaired, reconstructed or replaced as aforesaid,then
the Damaged Improvement must be removed in its entirety from the Lot, including removal of any
foundation, and all other restoration work performed, including grading and sodding, as is required such
that after demolition and removal Architectural Guidelines are maintained as determined by the DRC.
(c)Time Limits. All work regarding a Damaged Improvement must be completed within sixty (60) days
after the date of occurrence of the damage, casualty loss or other destruction; or, where such work cannot
be completed within the applicable period of time, the work mustbe commenced within such period and
completed within a reasonable time thereafter. In all events, all such work must be completed within
ninety (90) days after the date of occurrence of the damage, casualty loss or other destruction unless, for
good cause shown, a longer period is approved by the DRC.
ARCHITECTURAL CONTROL
Section 8.01General.
(a)No structure or thing, including but not limited to fences, shall be placed, erected, or installed upon any
Lot and no improvements or other work (including staking, clearing, excavation, grading, and other site
work, exterior alterations of existing improvements, or planting or removal of landscaping) shall take
place on any Lot except pursuant to approval and in compliance with this Article and the Architectural
Guidelines.
(b)No approval shall be required to repaint the exterior of a structure in accordance with the originally
approved color scheme or to rebuild in accordance with originally approved plans and specifications. Any
Owner may remodel, paint, or redecorate the interior of a dwelling located on his or her Lot without
approval; provided that modifications to the interior of a dwelling visible from outside the structure shall
be subject to approval.
(c)Any improvements constructed on a Lot shall be designed by and built in accordance with the plans and
specifications of a licensed architect unless otherwise approved by Declarant or its designee in its sole
discretion.
(d)This Article shall not apply to Declarant's activities or to the Association's activities during the
DevelopmentPeriod.
Section 8.02Architectural Review.
(a)By Declarant. Each Owner, by accepting a deed or other instrument conveying any legal or equitable
interest in a Lot, acknowledges that, as the developer and owner of real estate in the vicinity of and within
the Community, Declarant has a substantial interest in the quality and appearance of improvements within
the Community, and in determining that they enhance Declarant's reputation as a developer and do not
impair Declarant's ability to market, sell, or lease its property. Therefore, no Owner shall commence any
activity within the scope of this Article on his or her Lot unless and until Declarant or its designee has
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given its prior written approval for such activity, which approval may be granted or withheld in Declarant's
or its designee's sole discretion.
In reviewing and acting upon any request for approval, Declarant or its designee shall act solely in
Declarant's interest and shall owe no duty to any other Person. Declarant's rights reserved under this
Article shall continue or as long as Declarant owns any portion of the real property described in Exhibit
A or B or has the right to expand the Community pursuant to Section 10.1, unless earlier terminated by
Declarant by a Recorded Document.
Declarant may, in its sole discretion, designate one or more Persons from time to time to act on its
behalf in reviewing applications hereunder.
Declarant may from time to time, but shall not be obligated to, delegate all or a portion of its reserved
rights under this Article to any other Person,or a design review committee appointed by the Board of
Directors (the “DRC”). Any such delegation shall be in writing, specifying the scope of responsibilities
delegated, and shall be subject to (a) Declarant's right to revoke such delegation at any time and reassume
jurisdiction over the matters previously delegated, and (b) Declarant's right to veto any decision which
Declarant determines, in its sole and exclusive discretion, to be inappropriate or inadvisable for any
reason. So long as Declarant has any rights under this Article, the jurisdiction of any other Person or
committee shall be limited to such matters as are specifically delegated to it by Declarant.
Section 8.03DesignReview Committee. Upon delegation by Declarant or upon expiration of the Development
Period, the Association, acting through an the DRC, shallassume jurisdiction over architectural matters. The DRC
shall consist of at least three (3), but not more than seven (7), persons who shall serve and may be removed and
replaced at the Board's discretion. The members of the DRCneed not be Members, and may, but need not, include
architects, engineers, or similar professionals, whose compensation, if any, the Board shall establish from time to time.
Unless and until such time as Declarant delegates all or a portion of its reserved rights to the Association or
expiration of the DevelopmentPeriod, the Association shall have no jurisdiction over architectural matters.
Section 8.04Reviewer.For purposes of this Article, the committee or entity having jurisdiction over architectural
matters in a particular case shall be referred to as the "Reviewer." The Reviewer may establish and charge reasonable
fees for review of applications hereunder and may require such fees to be paid in full prior to review of any application.
Such fees may include the reasonable costs incurred in having any application reviewed by architects, engineers, or
other professionals.
Section 8.05Guidelines and Procedures.
(a)Architectural Guidelines. Declarant may prepare Architectural Guidelines applicable to Lots which may
contain general provisions applicable to all Lots as well as specific provisions which vary among the Lots
according to location, use, or other factors. The Architectural Guidelines are intended to provide guidance
to Owners regarding matters of particular concern to the Reviewer in considering applications hereunder.
The Architectural Guidelines are not the exclusive basis for the Reviewer's decisions, and compliance
with the Architectural Guidelines does not guarantee approval of any application. Further, the
Architectural Guidelines may be more restrictive than guidelines followed by UnionCounty or as set forth
in the International Builder’s Code.
Declarant shall have sole and full authority to amend the Architectural Guidelines as long as it owns
any portion of the real property described in Exhibit A or B or has a right to expand the Community
pursuant to Section 10.1, notwithstanding a delegation of reviewing authority, unless Declarant also
delegates the power to amend the Architectural Guidelines. Upon termination or delegation of Declarant's
right to amend, the DRCshall have the authority to amend the Architectural Guidelines with the Board's
consent. Any amendments to the Architectural Guidelines shall be prospective only and shall not apply to
require modifications to or removal of structures previously approved once the approved construction or
modification has commenced. There shall be no limitation on the scope of amendments to the
Architectural Guidelines, and such amendments may remove requirements previously imposed or
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otherwise make the Architectural Guidelines less restrictive.
The Association shall maintain a copy of the Architectural Guidelines, as they may existfrom time
to time, and shall make them available to Members or Owners for inspection and copying upon reasonable
notice during the Association's business hours. In Declarant's discretion, such Architectural Guidelines
may be recorded at the UnionCounty Registry, in which event the recorded version, as it may be amended,
shall control in the event of any dispute as to which version of the Architectural Guidelines was in effect
at any particular time.
(b)Procedures. Except as the Architectural Guidelines otherwise specifically provide, no activity described
in Section 8.01 shall commence on any Lot until an application for approval has been submitted to and
approved by the Reviewer. Such application shall include plans and specifications showing site layout,
exterior elevations, exterior materials and colors, landscaping, drainage, exterior lighting, irrigation, and
other features of proposed construction, as applicable. The Architectural Guidelines and the Reviewer
may require the submission of such additional information as deemed necessary to consider any
application.
In reviewing each submission, the Reviewer may consider any factors it deems relevant, including,
without limitation, harmony of external design with surrounding structures and environment. Decisions
may be based solely on aesthetic considerations. Each Owner acknowledges that determinations as to such
matters are purely subjective and opinions may vary as to the desirability or attractiveness of particular
improvements. Subject to Declarant'sveto power described below, the Reviewer shall have the sole
discretion to make final, conclusive, and binding determinations on matters of aesthetic judgment. Such
determinations shall not be subject to review so long as they are made in good faith and in accordance
with the procedures described in this Article.
The Reviewer shall make a determination on each application within thirty (30) days after receipt
of a completed application and all required information. The Reviewer may (a) approve the application,
with or without conditions; (b) approve a portion of the application and disapprove other portions; (c)
disapprove the application; or (d) request further or additional information. The Reviewer may, but shall
not be obligated to, specify the reasons for any objections or offer suggestions for curing any objections.
Until expiration of Declarant's rights under this Article, the DRCshall notify Declarant in writing
within three (3) business days after the DRChas approved an application. The noticeshall be accompanied
by a copy of the application and any additional information which Declarant may require. Declarant shall
have ten (10) days after receipt of such notice to veto any such action, in its sole discretion, by written
notice to the DRCandthe applicant.
In any event, the Reviewer shall notify the applicant in writing of a final determination within forty-
five (45) days after its receipt of a completed application and all required information. In the event that
the Reviewer fails to respond in a timely manner, approval shall be deemed to have been given, subject
to Declarant's veto right. However, no approval, whether expressly granted or deemed granted pursuant
to the foregoing, shall be inconsistent with the Architectural Guidelines unless the Reviewer has granted
a variance pursuant to this Article.
Notice shall be deemed to have been given at the time the envelope containing the response is
deposited with the U.S. Postal Service or sent via electronic notification. Personal delivery of such written
notice shall, however, be sufficient and shall be deemed to have been given at the time of delivery to the
applicant.
If construction does not commence on a project for which plans have been approved within one (1)
year after the date of approval, such approval shall be deemed withdrawn, and it shall be necessary for the
Owner to reapply for approval before commencing construction of any proposed improvements. Once
construction is commenced, it shall be diligently pursued to completion. All work shall be completed
within one year of commencement unless otherwise specified in the notice of approval or unless the
Reviewer grants an extension in writing, which it shall not be obligated to do. If approved work is not
completed within the required time, it shall be considered nonconforming and shall be subject to
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enforcement action by the Association, Declarant, or any aggrievedMember.
The Reviewer may by resolution exempt certain activities from the application and approval
requirements of this Article, provided such activities are undertaken in strict compliance with the
requirements of such resolution.
Section 8.06No Waiver of Future Approvals.Each Owner acknowledges that the Persons reviewing applications
under this Article will change from time to time and that opinions on aesthetic matters, as well as interpretation and
application of the Architectural Guidelines, may vary accordingly. In addition, each Owner acknowledges that it may
not always be possible to identify objectionable features until work is completed, in which case it may be unreasonable
to require changes to the improvements involved, but the Reviewer may refuse to approve similar proposals in the
future. Approval of applications or plans, or in connection with any other matter requiring approval, shall not constitute
a binding precedent in any other matter or waiver of the right to withhold approval as to any similarapplications,
plans, or other matters subsequently or additionally submitted for approval.
Section 8.07Variances.The Reviewer may authorize variances from compliance with any of its guidelines and
procedures when circumstances such as topography, natural obstructions, hardship, or aesthetic or environmental
considerations require, but only in accordance with duly adopted rules and regulations. No variance shall (a) be
effective unless in writing; (b) be contrary to this Declaration; or (c) estop the Reviewer from denying a variance in
other circumstances. For purposes of this Section, the inability to obtain approval of any governmental agency, the
issuance of any permit, or the terms of any financing shall not be considered a hardship warranting a variance.
Section 8.08Limitation of Liability. The standards and procedures this Article establishes are intended as a
mechanism for maintaining and enhancing the overall aesthetics of the Community; they do not create any duty to any
Person. Review and approval of any application pursuant to this Article may be based on aesthetic considerations
only. The Reviewer shall not bear any responsibility for ensuring (a) the structural integrity or soundness of approved
construction or modifications, (b) compliance with building codes and other governmental requirements, (c) that Lots
are of comparable quality, value, size, or of similar design, aesthetically pleasing, or otherwise acceptable to
neighboring property owners, (d) that views from any other Lots or the Common Area are protected, or (e) that no
defects exist in approved construction.
Declarant, the Association, the Board, any committee, or any member of any of the foregoing shall not be
held liable for soil conditions, drainage, or other general site work; any defects in plans revised or approved hereunder;
any loss or damage arising out of the actions, inaction, integrity, financial condition, or quality of work of any
contractor or its subcontractors, employees, or agents; or any injury, damages, or loss arising out ofthe manner or
quality of approved construction on or modifications to any Lot. In all matters, the Association shall defend and
indemnify the Board, the ARC, and any members thereof as provided in the Bylaws.
Section 8.09Certificate of Compliance.Any Owner may request that the Reviewer issue a certificate of
architectural compliance certifying that such Owner's Lot has no known violations of this Article or the Architectural
Guidelines. The Association shall either grant or deny such request within thirty (30) daysafter receipt of a written
request and may charge a reasonable administrative fee for issuing such certificates. Issuance of such a certificate shall
stop the Association from taking enforcement action with respect to any condition as to which the Association had
notice as of the date of such certificate.
Section 8.10View Impairment.Neither Declarant nor the Association guarantee or represent that any view over
and across any portion of the Community or any adjacent property will be preserved without impairment. Any
additions or changes, whether occurring in the course of developing or maintaining the Community, may diminish or
obstruct any view from Lots and any express or implied easements for view purposes or for the passage of light and
air are hereby expressly disclaimed.
INSURANCE.
Section 9.01Association Insurance. The Association shall obtain and maintain commercial general liability
insurance of at least One Million and 00/100 Dollars ($1,000,000.00), and, if reasonably available, directors’ and
officers’ liability insurance. Policies may contain a reasonable deductible as determined by the Board of Directors.
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In addition, the Board of Directors shall obtain worker’s compensation insurance, if and to the extent necessary to
satisfy the requirements of applicable laws, and a fidelity bond or bonds on all persons handling or responsible for the
Association’s funds, if reasonably available. If obtained, the amount of fidelity coverage shall at least equal three
months’ total assessments plus reserves on hand. Fidelity coverage shall contain a waiver of all defenses based upon
the exclusion of persons serving without compensation. All such insurance coverage shall be written in the name of
the Association.
Section 9.02Individual Insurance. Each Owner, by virtue of taking title to a Lotsubject to this Declaration,
acknowledges that the Association has no obligation to provide any insurance for any portion of individual Lots. Each
Owner covenants and agrees with all other Owners and with the Association that each Owner of an Improved Lot will
maintain at all times all-risk casualty insurance as well as a liability policy covering damage or injury occurring on a
Lot. The casualty insurance shall cover loss or damage by fire and other hazards commonly insured under an all-risk
policy, if reasonably available, and shall be in an amount sufficient to cover the full replacement cost of any repair or
reconstruction of a covered item in the event of damage or destruction from any such hazard.
The Board has the right, but not the obligation, to require the Owner to furnish a copy of such
insurance policy or policies to the Association. In the event that any such Owner fails to obtain insurance as required
by this Section, the Association has the right, but not the obligation, to purchase such insurance on behalf of the Owner
and to assess the cost thereof to the Owner, to be collected in the manner provided for collection of assessments herein.
Upon request by the Board, the Owner shall furnish a copy of such insurance policy or policies to
the Association.
Section 9.03Additional Insurance Requirements.
The Board of Directors shall utilize reasonable efforts to include the following provisions in the
policies that the Association obtains:
(a)waiver of the insurer's rights of subrogation of any claims against directors, officers, the managing agent,
the individual Owners, occupants, and their respective household members;
(b)an agreed value endorsement and an inflation guard endorsement;and
(c)until the expiration of thirty (30) days after the insurer gives notice in writing to the Mortgagee of any
Lot, the Mortgagee’s insurance coverage will not be affected or jeopardized by any act or conduct of the
Owner of such Lot, the other Owners, the Board of Directors, or any of their agents, employees, or
household members, nor be canceled for nonpayment of premiums.
All policies of insurance shall be writtenwith a company licensed to do business in the State of
North Carolina. Exclusive authority to adjust losses under policies obtained by the Association shall be vested in the
Association’s Board of Directors; provided, however, no Mortgagee having an interest in such losses may be
prohibited from participating in the settlement negotiations, if any, related thereto.
Nothing contained herein gives any Owner or other party a priority over the rights of first
Mortgagees as to distribution of insurance proceeds. Any insurance proceeds payable to the Owner of a Loton which
there is a Mortgagee endorsement shall be disbursed jointly to such LotOwner and the Mortgagee. This is a covenant
for the benefit of any such Mortgagee and may be enforced by any such Mortgagee. In the event of an insured loss,
any required deductible shall be considered a maintenance expense to be paid by the person or persons who would be
responsible for such loss in the absence of insurance. If the loss affects more than one Lot, the cost of the deductible
may be apportioned equitably by the Board among the parties suffering loss in proportion to each affected Owner’s
portion of the total cost of repair. Notwithstanding this, if the insurance policy provides that the deductible will apply
to each Lotseparately or to each occurrence, each LotOwner shall be responsible for paying the deductible pertaining
to his or her Lot, if any. If any Owner or Owners fail to pay the deductible when required under this subparagraph,
then the Association may pay the deductible and assess the cost to the Owner or Owners pursuant to the terms of this
Declaration.
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Nothing contained herein requires the Association to make a claim under the insurance policies upon
the occurrence of an insured event. TheAssociation has the right to exercise reasonable business judgment in all
insurance decisions.
MORTGAGEE PROVISIONS.
Section 10.01Notice of Action. An institutional holder, insurer, or guarantor of a first Mortgage, who provides a
written request to the Association (such request to state the name and address of such holder, insurer, or guarantor and
the Lotnumber, therefore becoming an “Eligible Holder”), will be entitled to timely written notice ofany of the
following events occurring within twelve (12) months after receipt of such request: (a) any condemnation loss of any
casualty loss which affects a material portion of the Property or which affects any Loton which there is a first
Mortgage held, insured, or guaranteed by such eligible holder; (b) any delinquency in the payment of assessments or
charges owed by an Owner of a Lotsubject to the Mortgage of such eligible holder where such delinquency has
continued for a period of sixty (60) days;(c) any default in the performance by the Owner of such encumbered Lotof
any obligation under the Declaration or Bylaws of the Association which is not cured within sixty (60) days; and (d)
any lapse, cancellation, or material modification of any insurance policy maintained by the Association.
Section 10.02Audit. Upon written request of an Eligible Holder and upon payment of all necessary costs, such
Eligible Holder shall be entitled to receive a copy of audited financial statements of the Association within ninety (90)
days of the date of the request.
Section 10.03No Priority. No provision of this Declaration or the Bylaws gives any Owner or other party priority
over anyrights of a Mortgagee of any Lotin the case of distribution to such Owner of insurance proceeds or
condemnation awards for losses to or taking of the Common Areas.
Section 10.04Failure of Mortgagee to Respond. Any Mortgagee who receives a written request from the Board
to respond to or consent to any action shall be deemed to have approvedsuch action if the Association does not receive
a written response from the Mortgagee within thirty (30) days of the date of the Association’s request, provided such
request is delivered to the Mortgagee by certified or registered mail, return receipt requested.
LEASE RESTRICTIONS.
No portion of a Dwelling (other than an entire Dwelling) may be rented.All leases must be in writing and
mustinclude a statement in conspicuous type that the Dwellings in Encore at Streamsideare intended for the housing
of persons fifty-five (55) years of age or older, as set forth in Article XVI. Owners shall clearly disclose such intent
to any prospective tenant or other prospective resident of the Dwelling. Every lease of a Dwellingshall provide that
failure to comply with the requirements and restrictions of Article XVIshall constitute a default under the lease.No
lease shall be for a period of less than twelve(12) months without the approval of the Board. A copy of the proposed
lease and anydocumentation required by the Association to verify compliance with the requirements of ARTICLE
XVI, must be delivered to the Association prior to occupancy by the tenant. The Owner of a leased Dwelling shall be
jointly and severally liable with his tenant to the Association to payany claim for injury or damage to property caused
by the negligence of the tenant. Every lease shall be subordinated to any lien filed by the Association whether before
or after such lease was entered into.
AMENDMENT
Duringthe Development Period,the Declaration may be amended by an instrument signed by the Declarant,
without the consent of any other Lot Owners, except thatany such amendment shall not adversely affect the title to
any Owner’s Lotunless such LotOwner shall consent thereto in writing. Except as otherwise provided herein, this
Declaration may be amended only upon the affirmative vote or written consent, or any combination thereof, of two-
thirds (2/3)of the LotOwners,with the consent of the Declarant during the Development Period.For purposes of this
Section, Exhibit “A”and Exhibit “B”shall be deemed a part of this Declaration.
Any amendment shall become effective upon the recording with the Register of Deeds of the instrument
evidencing such change unless a later effective date is specified therein. If an Owner consents to an amendment to
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this Declaration or the Bylaws, it will be conclusively presumed that such Owner has the authority to consent, and no
contrary provision in any Mortgage or contract between the Owner and a third party will affect the validity of such
amendment. Any challenge to an amendment must be made within six months of the recording of the amendment or
such amendment shall be presumed to have been validly adoptedand to be valid.
Every Owner, by taking record title to a Lot, and each holder of a mortgage upon any portion of any Lot, by
acceptance of such mortgage, hereby agrees that the terms, provisions, covenants and restrictions of this Declaration
may be amended as provided herein.
NON-ARBITRAL PROCEEDINGS.
Except as otherwise limited by this ARTICLE XIII, enforcement of these covenants and restrictions
pertaining to: (a) actions brought by the Association against Owners (excluding Declarant) to enforce the provisions
of this Declaration (including the foreclosure of liens); (b) the collections of assessments; (c) proceeding involving
challenges to ad valorem taxation; or (d) counterclaims brought by the Association in proceedings instituted against
it;((a)-(d) hereinafter collectively “Non-Arbitral Proceedings”),may be by any proceeding at law or in equity.
ARBITRAL PROCEEDINGS.
Any dispute other than the Non-Arbitral Proceedings described in ARTICLE XIIIabove,arising out of or
related, in whole or in part to this Declaration, or the Property, or any portion thereof or improvement thereon,
including any claim involving the Declarant (“Arbitral Proceedings”), shall be resolved in accordance with the
procedures described below.
Section 14.01Negotiation. Before any other action is taken on an Arbitral Proceeding, the parties thereto shall
attempt to resolve the dispute through negotiation and the following procedures.
(a)Alleged Construction Defects. No Person shall retain an expert for the purpose of inspectingthe design
or construction of any structures or improvements within the Property in connection with or in anticipation
of any potential or pending claim, demand, or litigation involving such design or construction unless
Declarant,andany architect, engineer, or landscape professional involved in the design or construction
(the “Respondent”)have been first notified in writing and given the opportunity to meet with the Person
contemplating the engagement of an expert (the “Claimant”), to conduct an inspection, and to repair
deficiencies, if any, identified by the Respondent. If after providing such opportunity to the Respondent
the Claimant elects to retain an expert, the Claimant shall thereafter deliver to the Respondent written
notice that includes, ata minimum, (a) a description of the alleged defect; (b) a certification from an
architect or engineer licensed in the State of North Carolina that such alleged defect exists along with a
description of the scope of work necessary to cure such alleged defect and a resume of such architect or
engineer; and (c) the cost to cure such alleged defect as estimated by the architect or engineer. After
delivering the notice required by the preceding sentence the Claimant shall afford the Respondent a
reasonable opportunity to cure the alleged defect before initiating any proceedings pursuant to Section
14.02 and 14.03.
(b)All other Arbitral Disputes. In all Arbitral Disputes other than construction defect claims which are
addressed by the preceding Section, the Person asserting or contemplating the assertion of claims (also
referred to herein as the “Claimant”) shall provide the party against whom the claim is asserted (also
referred to herein as the "Respondent")with written notice of the Arbitral Dispute,which notice must
include the Claimant’s position with regard to facts, circumstances and law related to the issues to be
resolved, together with all documents and evidence that supports such position, and after delivery of such
notice the parties shall meet in person and confer for the purpose of attempting to resolvea Arbitral
Dispute by good faith negotiation.
Section 14.02Mediation. If the parties to an Arbitral Dispute have notresolvedtheir Arbitral Dispute pursuant to
the procedures described in the precedingSection 14.01(a) orSection 14.01(b), as applicable, within ninety (90) days,
the Claimant shall have thirty (30) days after the termination of negotiations within which to submit the Arbitral
Dispute to mediation pursuant to the mediation procedures in the North Carolina Rules Implementing Statewide
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Mediated Settlement Conferences and Other Settlement Procedures in Superior Court Civil Actions or to any other
rules upon which the parties to the Arbitral Dispute may mutually agree. Persons other than the parties to the Arbitral
Dispute may attend mediation sessions only with the permission of all parties to the Dispute and the consent of the
mediator. Confidential information disclosed to a mediator by the parties to the Arbitral Dispute or by witnesses in
the course of the mediation shall be kept confidential. There shall be no stenographic record of the mediation process.
The expenses of witnesses for either side shall be paid by the party producing such witnesses. All other expenses of
the mediation, including, but not limited to, the fees and costs charged by the mediator and the expenses of any
witnesses or the cost of any proof of expert advice produced at the direct request of the mediator, shall be borne equally
by the parties to the Dispute unless agreed to otherwise. Each party to the Dispute shall bear their own attorneys’ fees
and costs in connection with such mediation.
Section 14.03Final and Binding Arbitration.If the parties cannot resolve their Arbitral Dispute pursuant to the
procedures described in Section 14.01above, the Claimant shall have ninety (90) days following termination of
mediation proceedings (as determined by the mediator) to submit the Arbitral Dispute to final and binding arbitration
in accordance with the Commercial Arbitration Rules of the American Arbitration Association or the Construction
Arbitration Rules of the American Arbitration Association, as determined applicable by the arbitrator, the American
Arbitration Association or as agreed upon by the parties, as such rules are modified or as otherwise provided in this
ARTICLE XIV. If the Claimant does not submit the Arbitral Dispute to arbitration within ninety (90) days after
termination of mediation proceedings, the Claimant shall be deemed to have waived any claims related to the Arbitral
Dispute and all other parties to the Arbitral Dispute shall be released and discharged from any and all liability to the
Claimant on account of suchArbitral Dispute; provided, nothing herein shall release or discharge such party or parties
from any liability to a person or entity not a party to the foregoing proceedings.
The existing parties to the Arbitral Dispute shall cooperate in good faith to ensure that all necessary
and appropriate parties are included in the arbitration proceeding. No Declarant shall be required to participate in the
arbitration proceeding if all parties against whom a Declarant would have necessary or permissive cross-claims or
counterclaims are not or cannot be joined in the arbitration proceedings. Subject to the limitations imposed in this
Section 14.03, the arbitrator shall have the authority to try all issues, whether of fact or law.
(a)Place. The arbitration proceedings shall be heard in the County where the Property is located.
(b)Commencement and Timing of Proceeding. Arbitration may not be commenced or prosecuted by or on
behalf of the Association unless approved by at least seventy-five percent (75%) of the LotOwners,which
approval must be accompanied by the approval of a reasonable arbitration budget and the approval and
collection of a Special Assessment in an amount equal to suchbudget to be levied equally among the Lots
and collected before commencement of any action. The arbitrator shall determine whether the Association
or a Claimant acting on behalf of the Association has satisfied the requirements of this Subsection (b)
before commencing any arbitration and shall promptly commence the arbitration proceeding at the earliest
convenient date in light of all of the facts and circumstances and shall conduct the proceeding without
undue delay, and in no case greater than sixty (60) days from the date of the demand or if the requirement
of this Subsection (b)has not been met find for the Respondent on all claims.
(c)Discovery. The parties to the Arbitral Dispute shall be entitled to limited discovery only, consisting of
the exchange between the parties of the following matters: (i) witness lists; (ii) expert witness
designations; (iii) expert witness reports; (iv) exhibits; (v) reports of testing or inspections of the property
subject to the Arbitral Dispute, including but not limited to, destructive or invasive testing; and (vi) trial
briefs. The Respondent shall also be entitled to conduct further tests and inspections as provided in
Section 14.01(a)above. Any other discovery shall be permitted by the arbitrator upon a showing of good
cause or based on the mutual agreement of the parties to the Arbitral Dispute. The arbitrator shall oversee
discovery and may enforce all discovery orders in the same manner as any trial court judge.
(d)Limitation on Remedies/Prohibition on the Award of Punitive Damages. Notwithstanding contrary
provisions of the Commercial Arbitration Rules, the arbitratorin any proceeding shall not have the power
to award punitive, consequential or statutory damages (all such damages being herby waived by all
Owners and the Declarant); however, the arbitrator shall have the power to grant all other legal and
equitable remedies and award compensatory damages. The arbitrator’s award may be enforced as
provided for under North Carolina Law, or such similar law governing enforcement of awards in a trial
24

court as is applicable in the jurisdiction in which the arbitration is held.
(e)Motions. The arbitrator shall have the power to hear and dispose or motions, including motions to dismiss,
motions for judgment on the pleadings, and summary judgment motions, in the same manner as a trial
court judge, except the arbitrator shall also have the power to adjudicate summary issues of fact or law
including the availability of remedies, whether or not the issue adjudicated could dispose of an entire
cause of action or defense.
(f)Expenses of Arbitration. Each party to the arbitration shall bear all of its own costs incurred prior to and
during the arbitration proceedings, including the fees and costs of its attorneys or other representatives,
discovery costs, and expenses of witnesses produced by such party. Each party to the Arbitral Dispute
shall share equally all charges rendered by the arbitrator unless otherwise agreed to by the parties, or
unless such party has waived its right to require arbitration of such dispute under this Section 14.03prior
to the commencement of such arbitration. As an express limitation to the foregoing, the arbitrator’s award
shall include the costs and expenses, including attorneys’ fees, incurred by the party the arbitrator
determines to have prevailed.
(g)Enforcement of Resolution. If the parties to a Arbitral Dispute resolve such Arbitral Dispute through
negotiation or mediation in accordance with Section 14.01or Section 14.02above, and any party thereafter
fails to abide by the terms of such negotiation or mediation, or if an arbitration award is made in
accordance with Subsection (d)and any party to the Arbitral Dispute thereafter fails to comply with such
resolution or award, then the other party to the Arbitral Dispute may file suit or initiate administrative
proceedings to enforce the terms of such negotiation, mediation, or awardwithout the need to again
comply with the procedures set forth in this Subsection (g). In such event, the party taking action to
enforce the termsof the negotiation, mediation, or the award shall be entitled to recover from the non-
complying party (or if more than one non-complying party, from all such parties pro rata), all costs
incurred to enforce the terms of the negotiation, mediation or awardincluding, without limitation,
attorneys’ fees and court costs.
shall not be amended unless such amendment is approved by
Section 14.04Amendment.This ARTICLE XIV
Declarant and at least eighty percent (80%) vote of the Class A Members.
DEVELOPMENT ACTIVITIES
Section 15.01Development Activities.Declarant,the constructors, sub-contractors, suppliers, vendors, sales
agents, realtors and all other related personnel of Declarant(all such Persons sometime herein referred to as
“Development Personnel”) have the right to transact any business and conduct any activities reasonably necessary for
all construction within, and all development of, the Property, and for the sale of Lots and single family residences and
any other improvements to be constructed within the Property (all such construction, development, sales and all related
business and activities herein referred to as “Development Activities”), including without limitation as set forth in this
Section 15.01.
Section 15.02Marketing.Declaranthasthe right to maintain models, to have, place and maintain sales and
promotional signs, flags, banners and similar promotional devices within the Properties, to conduct from time to time
an “open house” and similar events for realtors and other persons which may include without limitation leaving limited
access gates (if any) open as hereafter provided, and to use for development, sales and/or promotional purposes all or
any part of any Lot, including residence or other improvements located thereon, which is owned by Declarant.
Section 15.03Access.IF AND TO THE EXTENT THAT ANY PATROL OR ACCESS SERVICES,
STRUCTURES OR DEVICES, INCLUDING ANY CONTROLLED ACCESS GATE, GUARDHOUSE AND
RELATED STRUCTURES AND DEVICES (“PATROL/ACCESS DEVICES”), ARE PROVIDED FOR THE
PROPERTIES, THEN DURING THE DEVELOPMENTPERIOD, DECLARANT RETAINS FULL AND SOLE
AUTHORITY AS TO AND CONTROL OVER THE SAME. DECLARANT’S AUTHORITY AND CONTROL
INCLUDES THE RIGHT IN DECLARANT’S SOLE DISCRETION TO DETERMINE THE HOURS, STAFFING
AND MANNER OF OPERATION OF ANY AND ALL SUCH PATROL/ACCESS DEVICES, IF ANY. WITHOUT
LIMITATION OF THE FOREGOING, DECLARANT IS EXPRESSLY AUTHORIZED DURING THE
25

DEVELOPMENTPERIOD TO DETERMINE IF AND WHEN ANY PATROL/ACCESS DEVICES WILL BE OR
BECOME FUNCTIONAL OR OPERATIONAL, INCLUDING THE SOLE RIGHT AND AUTHORITY TO
DETERMINE IF AND WHEN ANY CONTROLLED ACCESS GATE WILL BE OR BECOME FUNCTIONAL,
AND IF AND WHEN TO LEAVE ANY CONTROLLED ACCESS GATES OPEN FOR ANY PERIODS OF TIME
(OR AT ALL TIMES). DURING THE DEVELOPMENT PERIOD DECLARANT MAY ALSO PERMIT, AND
AFTER THE DEVELOPMENTPERIOD THE ASSOCIATION AND THE BOARD MUST ALSO PERMIT AND
TAKE ALL NECESSARY ACTIONS TO FACILITATEACCESS TO THE PROPERTYBY ANY
DEVELOPMENT PERSONNEL INVOLVED IN ANY DEVELOPMENT ACTIVITIES, BY ANY PROSPECTIVE
PURCHASERS, BY ANY SALES AGENTS OR REALTORS AND BY ANY OTHER PERSONS AS
DECLARANT REASONABLY DETERMINES IS NECESSARY OR CONVENIENT TO ACCOMMODATE ANY
DEVELOPMENT ACTIVITIES. NO PROVISIONS OF THIS DECLARATION, AND NO OTHER
STATEMENTS OR COMMUNICATIONS BY DECLARANT OR THE ASSOCIATION, OR ANY RELATED
PARTIES OF EITHER, SHALL EVER CONSTITUTE ANY REPRESENTATIONS OR WARRANTIES BY
DECLARANT, THE ASSOCIATION, OR THE RELATED PARTIES OF EITHER, CONCERNING THE HOURS,
STAFFING OR MANNER OF OPERATION OF ANY PATROL/ACCESS DEVICES, OR CONCERNING ANY
SAFETY OR SECURITY BENEFITS OR PROTECTION REGARDING ANY OF THE SAME, ANY AND ALL
SUCH REPRESENTATIONS AND WARRANTIES BEING HEREBY EXPRESSLY DISCLAIMED.
Section 15.04Construction.Development Personnel may engage in construction activities, store equipment or
materials, and otherwise engage in activities and create conditions related to development of the Property, including
the construction and sale of residences and any other improvements in the Property, upon multiple Lots, Area of
Common Responsibilityand any other properties within the Property, excluding any Lot after the initial sale of the
Lot to an Owner other than Declarant. Without limitation of the foregoing, Declarantisspecifically authorized to
engage in any of the foregoing activities and any other Development Activities at any times and on any days (including
Sundays and holidays) as Declarant deems necessary.
Section 15.05Use of Common Areas.During the DevelopmentPeriod, Declarant’s Development Personnel may
use for any Development Activities, without charge, any Common Area(including improvements thereon).
Section 15.06Construction Facilities.Declarant may permit temporary toilet facilities, sales and construction
offices and storage areas to be used in connection with the construction and sale of residences at such locations as
Declarant may direct. Declarant may also authorize usage of garages as sales offices during the Development Period.
At or prior to the date of the sale of a Lot to an Owner other than Declarant, any garage appurtenant to the residence
located on the Lot used for sales purposes must be fully reconverted to a garage, and any such other Owner or their
successors in title shall be responsible for completion of the reconversion to any extent the reconversion is not
completed as aforesaid.
Section 15.07Parking.Development Personnel maypark vehicles in the street or designated parkinglocations
within the Propertyas is necessary to conducting of any Development Activities, as long as they don’t block vehicular
access through the streets or a private driveway, if any, as to any residence which is owned by an Owner other than
Declarant and which is occupied by the Owner or their tenant.
Section 15.08Construction Regulations.Declarant may establish any reasonable regulations which Declarant
deems appropriate to avoid hindrance or interference with any Development Activities, including limiting or denying
access to areas of the Propertywhich Declarant owns, and authorizing use of Common Areas and/or improvements
thereon in connection with its Developmental Activities.
Section 15.09Time Period.Except as stated in Section 15.05all provisions of this ARTICLE XVapply to each
Lot owned by Declarant until completion of the initial sale of the last Lot in the Property, whether or not completion
of the initial sale occurs during or after the Development Period.
Section 15.10Liability.ABSENT INTENTIONAL AND WILLFUL MISCONDUCT, DECLARANT, ITS
RELATED PARTIES AND ALL OTHER DEVELOPMENT PERSONNEL ARE NOT LIABLE TO ANY OWNER
OR TENANT, OR TO THE ASSOCIATION OR DRC, OR TO ANY RELATED PARTIES OF ANY OF THE
FOREGOING, OR TO ANY OTHER PERSON FOR ANY CONSEQUENCES OF THE REASONABLE
CONDUCTING OF ANY DEVELOPMENT ACTIVITIES.
AGE RESTRICTION
Section 16.01General.Encore at Streamsideis established as a senior housing community designed and intended
26

to provide housing for persons fifty-five (55) years of age or older, although younger persons are not restricted from
occupying a Dwellingalong with a person fifty-five (55) years of age or older so long as such co-occupancy is in
compliance with this Section 16.02. In addition, certain exceptions may be made pursuant to Section 16.02(a)(i)-
(a)(iii). The provisions of this section are intended to be consistent with, and are set forth in order to comply with, the
"housing for older persons" exemption ("HOPA Exemption") from prohibitions on discrimination based on familial
status under the federal Fair Housing Act, 42 U.S.C. § 3601, et seq., as it may be amended and the North Carolina
Fair Housing Act, NCGS §41A-1, et seq., as it may be amended (collectively, the "Fair Housing Acts"). Declarant,
during the DevelopmentPeriod, and the Board thereafter, shall have the power to amend this Article XVI, without the
consent of the members of the Association or any other Person, as necessary to make this Article XVIcompliant with
the HOPA Exemption under the Fair Housing Acts, the regulations adopted pursuant thereto, as they may be amended,
and any judicial decisions arising thereunder or otherwise relating thereto, in order to maintain the intent and
.
enforceability of this Article XVI
Section 16.02Requirements for Occupied Dwellings.
(a)Each occupied Dwelling shall at all times have as a Permanent Resident (as defined herein) at least one person
who is fifty-five (55) years of age or older (the "Qualifying Occupant"), exceptthat:
(i)In the event of the death of a person who was the sole Qualifying Occupant of a Dwelling,
or the illness or disability of the sole Qualifying Occupant requiring their transfer to a health care facility, nursing
home, or assisted living, personal care, continuing care, or similar facility providing assistance with daily personal
needs and/or health care, the spouse of such Qualifying Occupant residing in the Dwelling immediately prior to such
event and any other person then occupying the Improved Lot in compliance with this Section 16.02may continue to
occupy the Dwelling, provided that they notify the Board in writing within ten (10)days after the death or relocation
of the Qualifying Occupant and such continued occupancy would not cause Encore at Streamsideto be in
noncompliance with the requirements of the HOPA Exemption under the Fair Housing Acts or the requirements of
;
applicable zoning as of the date of the Board's receipt of such notice
(ii)During the DevelopmentPeriod, Declarant may grant an exception to this requirement,
provided the requirements for the HOPA Exemption under the Fair Housing Acts and the requirements of applicable
zoning would still be met, to permit occupancy of a specific Dwelling by the particular individuals for whom the
exception is made. Any such exception shall be made only in a writing signed by the Declarant, and shall identify the
specific individuals and Dwelling which they are authorized to occupy, and shall apply only to occupancy by the
specific individuals so named; and
(iii)In addition to the above, Declarant and any other Owner may request in writing that the
Board make an exception to the requirements of this Section 16.02(a)with respect to such Owner's Dwelling. The
Board may adopt and publish rules and policies for considering and granting such requests, including policies
regarding the form of such request and the information that must be provided with such request. The Board shall
respond to any such request within ten(10)calendar days after receipt of such request and all information required to
accompany such request, as specified by Board rules and policies. The Board may, but shall not be obligated to, grant
exceptions under this subparagraph (iii) in its sole discretion, provided the requirements for the HOPA Exemption
under the Fair Housing Acts and the requirements of applicable zoning would still be met.
(b)For purposes of this Article XVI, an occupant shall not be considered a “Permanent Resident” unlesssuch
occupant considers the Lotto be his or her legal residence and actually resides in the Dwelling for at least six(6)
months during every calendar year or such shorter period as the Dwelling is actually occupied by any person.
Section 16.03Transfer of Title.Nothing in thisArticle XVIis intended to restrict the ownership of or transfer
of title to any Dwelling; however, no Owner may occupy the Dwelling unless the requirements of this Article XVI
are met, nor shall any Owner permit occupancy of the Dwellingby any person in violation of this Article XVI.
Section 16.04Restrictions on Occupancy by Persons under the Age of 30.No Dwelling shall be
occupied by any person under the age of thirty (30), except that one person under the age of thirty (30)may occupy a
Dwelling with prior notice to and approval of the Board if such person is at least eighteen (18) years of age and the
Board reasonably determines that such occupancy is necessary to provide reasonable accommodation for the health
27

care needs of the person's handicapped parent or grandparent who is residing in the Dwelling in full compliance with
this section and would be unable to continue to reside in the Dwelling without such person's care. For purposes of this
subsection (c), aDwelling shall be deemed to be "occupied" by any person who stays overnight in the Dwelling more
than twenty-eight (28)nights, consecutive or nonconsecutive, in any twelve (12)month period; however, no person
under the age of eighteen (18) may stay overnight in a Dwelling more than fourteen (14) days in any consecutive
twelve (12) month period.
Section 16.05Restrictions on Regular Visitation by Persons under the Age of 18.No person shall provide
care or supervision in or from aDwelling on a regular or frequent basis to a person under the age of eighteen (18),
regardless of whether compensation is received and regardless of the caregiver's relationship to the person under the
age of eighteen (18). Such activity shall be not be considered "regular or frequent" if it occurs on no more than five
(5)days in any calendar month and no more than fifty-six (56)days in any twelve (12)month periodand does not
involve overnight stays is violation of Section 16.04. This Section 16.05shall not apply to restrict visits by any person
under the age of eighteen (18)who is accompanied during the duration of such visit by a parent or legal guardian,
provided that such visits do not involve overnight stays in violation of Section 16.04,whether or not accompanied by
a parent or legal guardian.
Section 16.06Change in Occupancy.
(a)In the event of any change in occupancy of any Dwellingas a result of a transfer of title, a lease, a birth or
death, a change in marital status, vacancy, change in location of permanent residence, or otherwise, the Owner of the
Dwellingshall immediately notify the Board in writing and provide to the Board the names and ages of all persons
residing in the Dwellingimmediately following such change in occupancy and such other information as the Board
may reasonably require to verify the age of each such person. In the event that an Owner fails to notify the Board and
provide all required information within ten (10)days after a change in occupancy occurs, the Association shall be
authorized to levy monetary fines against the Owner and the Dwellingfor each day after the change in occupancy
occurs until the Association receives the required notice and information, regardless of whether the Dwellingcontinues
to meet the requirements of Article XVI, in addition to all other remedies available to the Association under this
Declaration and North Carolinalaw, which may include dispossessory or eviction proceedings, subject to any
limitations of North Carolinalaw.
(b)Within thirty (30)days after the Qualifying Occupant of a Dwelling or any other person granted an exemption
pursuant to Section 16.02(a), ceases to be a Permanent Resident of the Dwelling, the remaining occupants shall vacate
.
the Dwelling unless the Board has granted an exception for the remaining occupants pursuant to Section 16.02(a)
Section 16.07Monitoring Compliance; Appointment of Attorney-in-Fact.
(a)The Association shall maintain age records on all persons residing in each Dwelling. The Board shall adopt
and publish policies, procedures, and rules to monitor and maintain compliance with this ArticleXVI, including
policies regarding visitors, updating of age records, the granting of exceptions pursuant to Section 16.02(a), and
enforcement. The Association shall periodically distribute such policies, procedures, and rules to Owners and make
copies available to Owners, their tenants, and holders of security interests in any Dwelling upon reasonable request.
(b)The Association shall have the power and authority to enforce this Article XVI in any legal manner available,
as the Board deems appropriate, including, without limitation, conducting a census of the persons occupying each
Dwelling, requiring copies of birth certificates or other proof of age for each person occupying the Dwelling to be
provided to the Board on a periodic basis, and taking action toevict the occupants of any Dwelling which is not in
compliance with the requirements and restrictions of this Article XVI. EACH OWNER HEREBY APPOINTS THE
ASSOCIATION AS ITS ATTORNEY-IN-FACT FOR THE PURPOSE OF TAKING LEGAL ACTION TO
DISPOSSESS, EVICT, OR OTHERWISE REMOVE THE OCCUPANTS OF HIS OR HER DWELLINGAS
NECESSARY TO ENFORCE COMPLIANCE WITH THIS ARTICLE XVI. Each Owner shall fully and truthfully
respond to any and all requests by the Association for information regarding the occupancy of his or her Dwelling
that, in the judgment of the Board, are reasonably necessary to monitor compliance with this Article XVI.
(c)Each Owner shall be responsible for ensuring compliance of its Dwellingwith the requirements and
restrictions of this Article XVIand the rules of the Association adopted hereunder. EACH OWNER, BY
28

ACCEPTANCE OF TITLE TO A DWELLING, AGREES TO INDEMNIFY, DEFEND, AND HOLD THE
ASSOCIATION HARMLESS FROM ANY AND ALL CLAIMS, LOSSES, DAMAGES, AND CAUSES OF
ACTION THAT MAY ARISE FROM FAILURE OF SUCH OWNER'S DWELLINGTO SO COMPLY. In addition,
the Association shall be entitled to recover allattorneys' fees and costs actually incurred in enforcing this Article XVI
from the Owner of the non-compliant Dwelling, whether or not suit is filed.
Section 16.08Restriction on Number of Persons Occupying Each Dwelling.Occupancy of each
Dwellingshall be limited tothat number of persons equal to the number of bedrooms in the Dwellingplus one(1)
additional person. For purposes of this Section 16.08, "occupancy" means staying overnight in a Dwelling for a total
of more than twenty-eight (28)nights, either consecutive or nonconsecutive, in any calendar year.
Section 16.09 Association Action.Notwithstanding anything to the contrary herein, the Association shall not
take any action that would cause the Associationto lose eligibility for the HOPA Exemption described in this Article
XVIwithout the prior written consent of Declarantduring the Development Period.
MISCELLANEOUS
Section 17.01No Waivers. In no event shall the failure by the Association to insist in any one or more cases upon
the strict performance of any of the terms, covenants, conditions, provisions or agreements set forth in this Declaration
be construed as a waiver or relinquishment of the future enforcement of any such term, covenant, condition, provision,
or agreement. The acceptance of performance of anything required to be performed with knowledge of the breach of
a term, covenant, condition, provision or agreement shall not be deemed a waiver of such breach, and no waiver by
the Association of any term, covenant, condition, provision or agreement shall be deemed to have been made unless
expressed in writing and signed by a duly authorized officer of the Association.
Section 17.02Duration.Subject to amendment or termination as authorized in this Declaration, this Declaration,
and all of the terms, easements, provisions, liens, charges, restrictions and covenants set forth herein, shall run with
the land and shall be binding on all parties and all persons claiming under them for a period of twenty (20) years from
and after the date this Declaration is recorded, after which time such covenants and restrictions shall be automatically
extended for successive periods of twenty (20) years until the recordation of an instrument of termination within two
(2) years of the expiration of the initial twenty-year period or any extension thereof, such instrument having been
executed by a minimum of sixty-sevenpercent (67%) of the record Owners of the Lots.
Section 17.03Notices. Any notice required or permitted to be sent to any member of the Association pursuant to
any provision of this Declaration may be served by depositing such notice in the mail, postage prepaid, addressed to
the member or Owner to whom it is intended, at the address which such member shall have furnished to the Secretary
of the Association in accordance with the Bylaws, or, in the absence of any such address having been so furnished to
the Secretary of the Association, at the address of the Lotowned by such member. The date of service shall be the
date of mailing. The address of Declarant or the Association shall be the address of its respective registered agent on
file with the Secretary of State of North Carolina. The date of service shall be the date shown on the return receipt.
Rejection or other refusal to accept shall be deemed to be receipt of the notice sent.
Section 17.04Successors to Declarant. In no event shall any person or other entity succeeding to the rights and
statusof Declarant by operation of law or through purchaseof Declarant's interest in all or any portion of the Property
at foreclosure, assignment or other means, sale under power or by deed in lieu of foreclosure, be liable for any act,
omission or matter occurring, or arising from any act, omission or matter occurring, prior to the date such successor
succeeded to the interest of Declarantunless expressly assumed by such successor or assign.
Section 17.05Right to Develop.Declarant and their respectiveemployees, agents, and designees shall have a
right of access and use and an easement over and upon all of the Common Area for the purpose of making, constructing
and installing such improvements to the Common Area as Declarantdeems appropriate in its sole discretion, and
Declarant,and itsemployees, agents, and designees shall have a right to complete construction, repair and maintenance
of Lots.Every Person that acquires any interest in a Lotor in the Property acknowledges that the Property is a planned
community, the development of which is likely to extend over many years, and agrees not to protect, challenge, or
otherwise object to (a) changes in uses or density of property, or (b) changes in the plan as it relates to property.Each
Owner acknowledges, understands and covenants to inform its lessees and all occupants of its Lotthat the Property
29

and areas adjacent to the Property are subject to further development and expansion, and therefore, there may be
certain inconveniences during any period of construction, and Owner as well as any of its tenants or occupants
acknowledges that such construction and development is permitted by this Declaration, notwithstanding the limitations
in ARTICLE XIand similar provisions, and waives all claims with respect to such inconveniences, sights, sounds,
smell and conditions associated with such construction.Owner agrees that if Owner or Owner’s employees, lessees,
invitees, clients, customers, guests, contractors, or agents enter onto any area of construction, they do so at their own
risk, and that the Declarantand itscontractors, agents or employees shall not be liable for any damage, loss or injury
to such person.
Section 17.06Liability Arising from Conduct of Owners. Each Owner, their tenants, and their respective related
parties must indemnify and keep indemnified, and hold harmless, Declarant, the Association, and their related parties
from and against all claims, damages, suits, judgments, court costs, attorney’s fees, attachments, and all other legal
actions caused through the willful or negligent act or omission of an Owner, the Owner’s tenants, or their respective
related parties.
Section 17.07Conflict with the Act; Severability. Should any of the terms, conditions, provisions, paragraphs, or
clauses of this Declaration conflict with any 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. 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 applicationof any such covenant, restriction, condition,
limitation, provision, paragraph or clause to any other person or circumstance.
\[SIGNATURE PAGE FOLLOWS\]
30

IN WITNESS WHEREOF, Declaranthas caused this Declaration to be executed by its duly authorized officers on the day
and year set forth below.
DECLARANT
WEEKLEY HOMES, LLC
A Delaware Limited Liability Company
By: DM WEEKLEY, INC., Manager
By: _______________________________
Name: ___________________________
Its: ______________________________
STATE OF TEXAS
COUNTY OF HARRIS
I certify that the following person personally appeared before me this day, acknowledging to me that he voluntarily signed the foregoing
document for the purpose stated therein and in the capacity indicated: ____________________, ______________________ of DM
Weekley, Inc., Manager of Weekley Homes, LLC.
Witness my hand and official seal, this the _____day of ___________, 2016.
______________________________________
Printed Name: __________________________
My commission expires: __________________

EXHIBIT “A”
Legal Description
All that certain parcel of land, situated, lying and being in the Town ofWaxhaw,Union County, State of North
Carolina, and more particularly described as follows:
Beginning at (POINT OF BEGINNING) anail set in the centerline of Cuthbertson Road (Existing 60’ Public
Right of Way), being further located S37-44-24E 31.62’ distant of a found rebar located on the Right of Way of
Cuthbertson Road (Existing 60’ Public Right of Way), being further described as the Southwestern corner of
land owned Now or Formerly by Piedmont Natural Gas Company Inc. as recorded in Deed Book 7247, page
563 of the Union County Register of Deeds, thence with the center line of Cuthbertson Road (more or less) for
six (6) calls and distances to points, 1) N-31-43-36E 94.24’, 2) N31-09-56E 128.42’, 3) N30-50-59E 187.71’, 4)
N30-59-42E 235.73’, 5) N30-50-12E 108.63’, 6) N30-45-07E 74.53’ to a found rail road spike, thence leaving
the center line of CuthbertsonRoad in a Northeastern direction N69-35-03E 381.06’ (passing through a found
½” rebar at 48.04’ of this line) to a found ¾” rebar, thence S16-54-26E 202.81’ to a found ¾” rebar, thence
S04-04-33W 164.95’ to a found ¾” rebar, thence S10-53-43E 529.98’ to afound mark chiseled in a stone,
thence S68-34-43E 742.29’ (passing through a found nail in a stone at 696.79’ of this line) to a point, thence
with the meandering center line of the East Fork of Twelve Mile Creek for twenty two (22) calls and distances
topoints, 1) S45-20-09W 26.13’, 2) S26-55-09W 71.00’, 3) S35-48-09W 528.00’, 4) S41-55-09W 412.66’, 5)
S35-38-09W 268.22’, 6) S42-01-09W 571.00’, 7) S44-16-09W 246.00’, 8) S25-29-09W 185.00’, 9) S43-48-
51E 254.00’, 10) S32-13-51E 234.00’, 11) N88-45-09E 85.00’, 12) N41-22-09E 124.00’, 13) S55-18-51E
62.00’, 14) S03-43-51E 94.00’, 15) S43-03-09W 240.00’, 16) S27-31-09W 374.00’, 17) S60-40-09W 205.00’,
18) S53-34-09W 264.00’, 19) S68-13-09W 181.00’, 20) S58-26-09W 280.00’, 21) S48-49-09W 184.00’, 22)
S57-52-09W 736.00’, thence at the intersection of the East Fork of Twelve Mile Creek and Twelve Mile Creek
Tributary 3, continuing with the centerline of Twelve Mile Creek Tributary 3 for twenty three (23) calls and
distances to points, 1) N79-04-51W 106.00’, 2) N31-08-21W 43.77’, 3) N39-58-52W 92.39’, 4) N11-51-58W
134.61’, 5) N18-56-58W 103.71’, 6) N27-38-50W 151.43’, 7) N15-37-19W 171.74’, 8) N18-19-25W 422.34’,
9) N21-52-01W 186.35’, 10) N15-05-33W 79.05’, 11) S87-23-57W 163.89’, 12) N48-32-06W 201.48’, 13)
N25-25-49W 116.19’, 14) N47-57-59W 154.43’, 15) N21-21-54E 166.33’, 16) N67-01-54E 85.00’, 17) S66-
46-06E 188.00’, 18) N62-28-54E 390.00’, 19) N25-01-54E 212.00’, 20) N01-43-06W 305.00’, 21) N50-46-
06W 55.00’, 22) N07-36-54E 212.00’, 23) N15-17-06W 738.23’ toa point at the intersection of the centerline
of Twelve Mile Creek Tributary 3 and the Right of Way of Cuthbertson Road (Existing Variable Right of
Way), thence with the Right of Way of Cuthbertson Road N76-21-16E 68.05’ to a point, thence with the arc of
a curve to right having a radius of 1,820.00’ and arc length of 335.17’ (subtended by chord N81-35-31E
334.70’) to a point, thence N86-52-03E 274.60’, thence N04-28-55W 64.66’ to the centerline of Cuthbertson
Road (Existing Variable Width Right of Way), thence with the centerline of Cuthbertson Road, thence with the
centerline of Cuthbertson Road (Existing Variable Right of Way) for eighteen calls and distance to points, 1)
N85-41-42E 26.39’, 2) N84-47-01E 53.65’, 3) N83-36-58E 54.73’, 4) N80-27-19E 52.90’, 5) N77-46-21E
51.25’, 6) N74-46-15E 55.83’, 7) N73-31-59E 56.52’, 8) N73-04-27E 49.68’, 9) N73-17-05E 58.22’, 10) N72-
14-15E 57.48’, 11) N72-14-31E 57.85’, 12) N70-58-29E 85.49’, 13) N71-35-10E 34.93’, 14) N69-09-41E
100.00’, 15) N61-28-11E 100.00’, 16)N48-53-11E 100.00’, 17) N38-27-41E 100.00’, 18) N32-37-11E 100.00’
to the Point and Place of Beginning.
Containing +-194.204acres.

Exhibit “B”
Lawn Maintenance
I.Association Maintenance of Improved Lots.
a.The Association shall be responsible for performing,or causing to be performed, the following services on
Improved Lots:
i.mowing and fertilizing of lawns (including both front and rear yards of the Units), and application
of weed control and fertilizer to such lawns on such schedule as the Board deems appropriate to
maintain turf in a healthy condition;
ii.weeding and mulching of planting beds and edging of curbs, walks, and planting beds as Board
deems appropriate consistent with the budget; twice per year;
iii.maintenance, repair, replacement, andoperation of any centrally-controlled irrigation system or
systems installed by the Declarant or its designees to servemultiple Lots("Irrigation System"); and
iv.such other maintenance of landscaping and hardscaping on Lotsas maybe funded budget adopted
from time to time in accordance with theDeclaration.
b.Each Owner shall clear yards and sidewalks on such Owner's Lotand adjacentrights-of-way of personal
property (e.g., chairs, tables, garbage cans, hoses, toys, sports and play equipment, etc.) and obstructions, remove pets,
provide gates with at least 48" of clearance toaccess any fenced area or courtyard,and leave such gates unlocked to permit
unfettered access tofenced areas and courtyards, in order to enable maintenance personnel to perform the services tobe
provided by the Association hereunder. An Owner's failure to comply with this section shallrelieve the Association of its
responsibility hereunder with respect to such Owner's Lotto theextent that the Association or maintenance personnel
determine that such noncomplianceinterferes with their ability to provide the required services, in which case the Owner
shallperform such maintenance and repairs, at such Owner's expense, in a timely manner and without deduction from or
offset againstassessments due hereunder. Each Owner hereby releases the Association, its officers, directors, contractors,
subcontractors, managers, agents and any maintenance provider from any claims arising out of the failure of maintenance
personnel to ensure that gates are closed upon such Owner’s Lot.
II.Commencement of Association's Maintenance Responsibilities. All maintenanceon a Lotshall be the responsibility
of the Owner until suchtime as the Association's responsibilities commence hereunder. The Association's
responsibilities under ParagraphI aboveshall commence as to each Lot uponsatisfaction of the following
requirements:
a.completion of construction of a dwelling and all related improvements on theLot; and
b.issuance of a certificate of occupancy for such dwelling and relatedimprovements from Union County,
North Carolina; and
c.completion of installation of landscaping on the Unit as verified by the Board.