CS Declaration of Condominium

INDEX

DECLARATION OF CONDOMINIUM OF CANAVERAL SANDS CONDOMINIUM PAGE

I. ESTABLISHMENT OF CONDOMINIUM 4

II. SURVEY AND DESCRIPTION OF IMPROVEMENTS 5

III. DESCRIPTION OF ADDITIONAL PHASES 8

OWNERSHIP OF APARTMENT AND APPURTENANT SHARE IN COMMON 10 ELEMENTS AND COMMON SURPLUS, AND SHARE OF COMMON ELEMENTS

V. APARTMENT BOUNDARIES, COMMON ELEMENTS 11

AND LIMITED COMMON ELEMENTS

VI. ADMINISTRATION OF CONDOMINIUM BY 13

CANAVERAL SANDS CONDOMINIUM ASSOCIATION, INC

VII. MEMBERSHIP AND VOTING RIGHTS 13

VIII. COMMON EXPENSES, ASSESSMENTS, COLLECTION 14

LIEN AND ENFORCEMENT, LIMITATIONS

INSURANCE COVERAGE USE AND DISTRIBUTION OF PROCEEDS, 19

REPAIRS OR RECONSTRUCTION AFTER CASUALTY

X. RESPONSIBILITY FOR MAINTENANCE AND REPAIRS 22

XI. USE RESTRICTIONS 24

XII. LIMITATIONS UPON RIGHT OF OWNER TO ALTER OR MODIFY APARTMENT 26

XVIII. ADDITIONS, ALTERATIONS OR IMPROVEMENTS BY THE ASSOCIATION 26

XIV. RESTRICTIONS AS TO LEASING AND RENTAL OF APARTMENTS 26

XV. SALE OF CONDOMINIUM UNITS 27

XVI. AMENDMENT OF DECLARATION 27

XVII. TERMINATIONS OF THIS CONDOMINIUM PROJECT 28

XVIII. ENCROACHMENTS 29

XIX. ASSOCIATION TO MAINTAIN REGISTER OF OWNERS AND MORTGAGEES 29

XX. ESCROW FOR INSURANCE PREMIUMS 30

XXI. REAL PROPERTY TAXES DURING INITIAL YEAR OF CONDOMINIUM 30

XXII. RESPONSIBILITY OF APARTMENT OWNERS 30

XXIII. WAIVER 31

XXIV. CONSTRUCTION 31

XXV. GENDER 31

XXVI. CAPTIONS 31

XXVI. REMEDIES FOR VIOLATIONS 32

DECLARATION OF CONDOMINIUM OF CANAVERAL SANDS CONDOMINIUM

TUCK ENTERPRISES, INC., a Florida corporation, whose post office address is Post Office Box 306, Cocoa Beach, Florida, hereinafter called the Developer, does hereby make, declare and establish this Declaration of Condominium, hereinafter sometimes referred to as “The Declaration” as and for a plan of condominium apartment ownership for CANAVERAL SANDS, A CONDOMINIUM, which consists of real property and improvements thereon as hereinafter described, and which is the first phase of a planned four (4) phase project.

All restrictions, reservations, covenants, conditions and easements contained herein shall constitute covenants running with the land or equitable servitudes upon the land, as the case may be, and shall rule perpetually unless terminated as provided herein and shall be binding upon all parties or persons subsequently owning property in said condominium, and in consideration of the receipt and acceptance of a conveyance, grant, devise, lease or mortgage, all grantees, devisees, lessees, and assigns, and all parties claiming by, through or under such persons, agree to be bound by all provisions hereof. Both the burdens imposed and the benefits shall run with each unit and the interests in the common property as herein defined.

I. ESTABLISHMENT OF CONDOMINIUM

The Developer is the owner of the fee simple title to that certain real property situated in Brevard County, State of Florida, which property is more particularly described as follows: to-wit:

SEE ATTACHED DESCRIPTION FOR PHASE ONE

And on which property the Developer owns one (1) five story apartment building containing a total of thirty units, and other appurtenant improvements, as hereinafter described. The Developer does hereby submit the above described real property, together with the improvements thereon, to condominium ownership pursuant to the Florida Condominium Act, and hereby declares the same to be known and identified as CANAVERAL SANDS, A CONDOMINIUM, hereinafter referred to as the “Condominium”, “the Condominium project”, or the “project”.

This is the first phase of a planned four (4) phase condominium project as is referred to by the surveyor who prepared Exhibits “A” and “B” which are attached to and made a part hereof as Phase I. The only lands being submitted to condominium ownership at this time by this Declaration are the lands described as Phase I on Sheet 2 of Exhibit “A”.

The provisions of the Florida Condominium Act are hereby adopted herein by express reference and shall govern the condominium and the rights, duties, and responsibilities of apartment owners hereof, except where permissive variances there from appear in the Declaration and the BYLAWS and Articles of Incorporation of CANAVERAL SANDS CONDOMINIUM ASSOCIATION, INC., a Florida corporation not for profit.

The definitions contained in the Florida Condominium Act shall be the definition of like items as used in this Declaration and exhibits thereto unless other definitions are specifically set forth. As the term is used herein and in exhibits hereto, “apartment” shall be synonymous with the term “unit” as defined in said Act, and the term “apartment owner” synonymous with the term “unit owner” as defined therein.

II. SURVEY AND DESCRIPTION OF IMPROVEMENTS

Attached hereto and made a part hereof, and marked “Exhibit “A”, consisting of ten (10) pages and Exhibit “B”, consisting of six (6) pages, are surveys of the land and graphic descriptions of the improvements in which apartments are located, and plot plan thereof, identifying the apartments, the common elements and the limited common elements, and their respective locations and dimensions.

Exhibit “A” covers Phase I of this Condominium project and includes the following on the sheets thereof as hereinafter designated:

SHEET I The Surveyor’s Certificate.

SHEET 2 The sketch of Survey of the real property submitted to Condominium form of ownership hereunder.

SHEET 3 The Graphic Plot Plan.

SHEET 4 The individual first floor perimeter plan of Building Number 1.

SHEET 5 The individual second floor perimeter plan of Building Number 1.

SHEET 6 The individual third floor perimeter of Building Number 1.

SHEET 7 The individual fourth floor perimeter of Building Number 1.

SHEET 8 The individual fifth floor perimeter of Building Number 1.

SHEET 9 Typical Unit A Floor Plan.

SHEET 10 Typical Unit B Floor Plan.

Exhibit “B” includes the following on the sheets thereof as hereinafter designated:

SHEET 1 Graphic plot plan of all four Phases of the Condominium project.

SHEET 2 Surveyor’s notes for each of the four phases of the project.

SHEET 3 Sketch of survey of all lands comprising the four phases of the project.

SHEET 4 Sketch of survey of those lands comprising Phase One.

SHEET 5 Sketch of survey of those lands comprising Phase Two.

SHEET 6 Sketch of survey of those lands comprising Phase Three and Phase Four.

Exhibit “A” and “B” were prepared, in compliance with the provisions of the Florida Condominium Act, by Allen Engineering, Inc., by John Campbell, Professional land Surveyor, Florida Certificate No. 2351, and Exhibit “A” and “B” have been certified in the manner required by the Florida Condominium Act (Florida Statues 1978).

Each unit is identified and designated by both a numerical designation for the building in which the unit is located and a specific number for the unit within that building. No apartment has the same unit number as any other apartment. The numerical designation of each building, sheet number of Exhibit “A” in which that building is shown, the unit number of each apartment and the Model of unit for each unit in that building are as follows:

BUILDING NO. 1

FIRST FLOOR SHEET NUMBER 4 OF EXHIBIT “A”

Unit No.	Model
101	Reversed A
102	Reversed B
103	B
104	Reversed B
105	B
106	A

SECOND FLOOR SHEET NUMBER 5 OF EXHIBIT “A”

Unit No.	Model
201	Reversed A
202	Reversed B
203	B
204	Reversed B
205	B
206	A

THIRD FLOOR SHEET NUMBER 6 OF EXHIBIT “A”

Unit No.	Model
301	Reversed A
302	Reversed B
303	B
304	Reversed B
305	B
306	A

FOURTH FLOOR SHEET NUMBER 7 OF EXHIBIT “A”

Unit No.	Model
401	Reversed A
402	Reversed B
403	B
404	Reversed B
405	B
406	A

FIFTH FLOOR SHEET NUMBER 8 OF EXHIBIT “A”

Unit No.	Model
501	Custom Build
501-A	Custom Built
503	B
504	Reversed B
505	B
506	A

III. DESCRIPTION OF ADDITIONAL PHASES

It is anticipated that the Condominium project will be expanded by the addition of three (3) five story buildings containing a total of eighty-nine (89) apartments, a recreation room and swimming pool, and other appurtenant improvements as hereinafter described which the Developer owns on adjacent property. These additional anticipated phases are described herein below.

If constructed, Phase 2 shall consist of building number Two which is described in detail in the surveys, graphic description, and plot plans contained in Exhibit “B”. The property upon which Phase 2 is located is more particularly described as follows:

SEE ATTACHED DESCRIPTION FOR PHASE 2

Building number Two is a five story multi-family structure approximately 47 feet in height and containing thirty (30) units as follows: Ten (10) Unit A models and twenty (20) Unit B models. Phase 2 shall also include two garage buildings containing a total of fifty-four (54) parking spaces and a 25’ x 50’ swimming pool. The balance of the development in Phase 2 shall consist of open parking areas, driveways and open areas.

If constructed, Phase 3 shall consist of building number Three which is described in detail in the surveys, graphic description and plot plans contained in Exhibit “B”. The property upon which Phase 3 is located is more particularly described as follows:

SEE ATTACHED DESCRIPTION FOR PHASE 3

Building number Three is a five story multi-family structure approximately 47 feet in height and containing twenty-nine (29) units as follows: Nine (9) Unit A models and twenty (20) Unit B models. Phase 3 includes a recreational room, which shall be a common element of the condominium. The balance of Phase 3 shall consist of open parking spaces, driveways and open areas.

If constructed, Phase 4 shall consist of Building number Four which is described in detail in the surveys, graphic description and plot plans contained in Exhibit “B”. The property upon which Phase 4 is located is more particularly described as follows:

SEE ATTACHED DESCRIPTION FOR PHASE 4

Building number Four is a five story multi-family structure approximately 47 feet in height and containing thirty (30) units as follows: Ten (10) Unit A models and twenty (20) Unit B models. Phase 4 shall also include two garage buildings containing a total of forty-two (42) parking spaces. The balance of the development in Phase 4 shall consist of open parking areas, driveways and open areas.

Nothing herein contained shall be construed so as to commit the Developer to construct any of the phases except Phase 1. It is anticipated that all construction will be completed by June 30, 1982.

IV. OWNERSHIP OF APARTMENTS AND APPURTENANT SHARE IN COMMON ELEMENTS AND COMMON SURPLUS, AND SHARE OF COMMON EXPENSES

Each apartment unit shall be conveyed as an individual property capable of independent use and fee simple ownership and the owner or owners of each apartment unit shall own, as an appurtenance to the ownership of each said apartment, an undivided share of all common elements of the condominium which includes, but is not limited to ground support area, parking areas, walks, yard area, foundations, etc., and substantial portion of the exterior walls, floors, ceilings and walls between units. The space within any of the units and common property is hereby declared to be appurtenant to each unit and such interest shall be deemed conveyed, devised, encumbered or otherwise included with the unit even though such interest is not expressly mentioned or described in the conveyance or other instrument. Any instrument whether a conveyance, mortgage or otherwise which describes only a portion of the space within any unit shall be deemed to describe the entire unit owned by the person executing such instrument and that unit’s undivided interest in all common elements of the condominium.

If a second phase is constructed, the owner of each apartment unit in the project, as then constituted, will own an undivided one-sixtieth (1/60) interest in all the common elements of this condominium project.

If a third phase is constructed, the owner of each apartment unit in the project, as then constituted, will own an undivided one-eighty ninth (1/89) interest in all common elements of the condominium project.

If a fourth phase is constructed, the owner of each apartment unit in the project, as then constituted, will own an undivided one-one hundred nineteenth (1/119) interest in all common elements of the condominium project.

The common expenses shall be shared and paid and the common surplus shall be owned in the same proportion as each unit owner’s share of the ownership of the common elements as stated hereinabove.

The Developer hereby, and each subsequent owner of any interest in a unit and in the common property, by acceptance of a conveyance of any instrument transferring an interest, waives the right of partition of any interest in the common property under the laws of the State of Florida as it exists now or hereafter until this condominium apartment project is terminated according to the provision hereof or by law. Any owner may freely convey an interest in a unit together with an undivided interest in the common property subject to the provisions of this Declaration. All owners of units shall have as an appurtenance to their units a perpetual easement for ingress to and egress from their units over walks and other common property from and to the public highways bounding the condominium complex, and a perpetual right or easement, in common with all persons owning an interest in any unit in the condominium project to the use and enjoyment of all public portions of the building and to other common facilities, (including, but not limited to utilities as they now exist) located in the common property.

All property covered by the Exhibits hereto shall be subject to a perpetual easement for encroachments which now exist or hereafter may exist caused by settlement or movement of the building, and such encroachments shall be permitted to remain undisturbed and such easement shall continue until such encroachment no longer exists.

All units and the common property shall be subject to a perpetual easement in gross granted to the Association, hereinafter named, and its successors, for ingress and egress for the purpose of having its employees and agents perform all obligations and duties of the corporation set forth herein; however, that access to the units shall only be at reasonable times.

The Developer hereby grants and conveys unto CANAVERAL SANDS CONDOMINIUM ASSOCIATION, INC., a non-profit corporation existing under the laws of the State of Florida, a nonexclusive easement over all walkways, lawn areas, driveways, parking areas and all other common elements of the condominium to that all members of the Association, present and future, their guests and tenants may use the aforesaid common elements for the uses and purpose intended therefore.

As any additional phases are constructed by the Developer an Amendment to this Declaration covering that phase shall be recorded in the Public Records of Brevard County, Florida, and upon such recording, the said additional phase shall become a part of this condominium project. Upon such recording, all common elements in that phase shall become subject to the aforesaid easements in favor of the Association, so that thereafter the Association will have an easement, for the benefit of all owners in the project, as it then exists, over all of the common elements in the expanded project.

V. APARTMENT BOUNDARIES, COMMON ELEMENTS, AND LIMITED COMMON ELEMENTS

The apartments of the condominium consist of that volume of space which is contained within the undercoated or unfinished exposed interior surfaces of the perimeter walls, floors and ceilings of the apartments, the boundaries of which apartments are more specifically shown on Exhibit “A”, Sheets 4-8 attached hereto. The dark solid lines on the floor plans hereinabove mentioned represent the parametrical boundaries of the apartments, while the upper and lower boundaries of the apartments, relating to the elevations of the apartments, are shown in notes on said plans.

There are limited common elements appurtenant to each of the units in this condominium, as shown and reflected by the floor and plat plans. These limited common elements are reserved for the use of the units appurtenant thereto, to the exclusion of other units, and there shall pass with a unit, as appurtenant thereto, the exclusive right to use the limited common elements so appurtenant.

In addition there are twenty-four (24) covered garages in Phase 1, fifty-four (54) covered garages in Phase 2 and forty-two (42) covered garages in Phase 4, which the Developer reserves the right to designate for the exclusive use of the individual owners, which spaces are hereby made limited common elements. In addition to the assignment for exclusive use of a covered parking space for each unit the Developer will also assign for the exclusive use of the individual owner one open parking space for each unit.

Expenses of maintenance, repair or replacement relating to the limited common elements shall be treated as and paid for as a part of the common expenses of the Association, except for the expenses of maintenance relating to the floor and ceiling surfaces shall be borne by and assessed against the individual unit owner. However, the expense of maintenance, repair or replacement made necessary by the act of any unit owner shall be borne by said unit owner.

The common elements of the condominium consist of all of the real property, improvements and facilities of the condominium other than the apartments and the limited common elements as the same are hereinabove defined, and shall include easements through the apartments for conduits, pipes, ducts, plumbing, wiring and other facilities for the furnishing of utility service to the apartments, limited common elements and common elements and easements of support in every portion of an apartment which contributes to the support of improvements, and shall further include all personal property held and maintained for the joint use and enjoyment of all the owners of the apartments.

VI. ADMINISTRATION OF CONDOMINIUM BY CANAVERAL SANDS CONDOMINIUM ASSOCIATION, INC.

The operation and management of the condominium shall be administered by CANAVERAL SANDS CONDOMINIUM ASSOCIATION, INC., a corporation not for profit organized and existing under the laws of the State of Florida, hereinafter referred to as the corporation or the Association.

The Association shall have all of the powers and duties incident to the operation of the condominium as set forth in this Declaration and the Articles of Incorporation and BYLAWS of the Association as well as all of the powers and duties set forth in the Condominium Act. True and correct copies of the Articles of Incorporation of the Association, a corporation not for profit, and the BYLAWS of said Association are attached hereto, made a part hereof, and marked Exhibits “C” and “D” respectively.

VII. MEMBERSHIP AND VOTING RIGHTS

The Developer and all persons hereafter owning a vested present interest in the fee title to any of the units shown on the Exhibits hereto and which interest is evidenced by recordation of a proper instrument in the Public Records of Brevard County, Florida, shall automatically be members and their memberships shall automatically terminate when they no longer own such interest.

There shall be a total of 30 votes to be cast by the owners of the condominium units in Phase 1.

If a second phase is constructed there shall be a maximum of sixty (60) votes to be case by the owners of the condominium units.

If a third phase is constructed there shall be a maximum of eighty-nine votes to be case by the owners of the condominium units.

If a fourth phase is constructed there shall be a maximum of one hundred nineteen (119) votes to be cast by the owners of the condominium units.

The owner of each condominium unit (designated as such on the exhibits attached to the Declaration) shall be entitled to case one (1) vote, except the owner of Unit 501-501-A of Phase 1 shall be entitled to cast two (2) votes. Where a condominium is owner by more than one person, all the owners thereof shall be collectively entitled to the vote assigned to such unit and such owners shall, in writing, designate an individual who shall be entitled to case the vote on behalf of the owners of such condominium unit of which he is apart until such authorization shall have been changed in writing. The term “owner”, as used herein shall be deemed to include the Developer.

All of the affairs, policies, regulations and property of the corporation shall be controlled and governed by the Board of the Association whose m4embers are all to be elected annually by the members entitled to vote, as provided in the BYLAWS of the Association. Each Board Member shall be the owner of a condominium unit (or a partial owner of a condominium where such unit is owner by more than one individual, or if a unit is owned by a corporation, including the Developer, any duly elected officer or officers of an owner corporation may be elected a board member or members). The first election of directors shall be sixty (60) days from date of recording this Declaration.

VIII. COMMON EXPENSES, ASSESSMENTS, COLLECTION LEIN AND ENFORCEMENT, LIMITATIONS

The Board of Administration of the Association shall approve annual budgets in advance for each fiscal year and the budgets shall project anticipated income and estimated expense in sufficient detail to show separate estimates for insurance for fire and extended coverage, vandalism and malicious mischief, for the units and the common property and public liability insurance for the common property, operating expenses, and maintenance expenses, repairs, utilities, replacement reserve, and reasonable operating reserve for the common property. Failure of the Board to include any item in the annual budget shall not preclude the Board from levying an additional assessment in any calendar year for which the budget has been projected. In determining such common expense, the Board of Administration may provide for an operating reserve not to exceed fifteen percent (15%) of the total projected common expenses for the year. Each apartment owner shall be liable for the payment to the Association of that owner’s share or percentage of the common expenses as provided in Article V above.

After adoption of a budget and determination of the annual assessment per unit, the Association shall asses such sum by promptly notifying all owners by delivering or mailing notice thereof to the voting member representing each unit at such member’s most recent address as shown by the books and records of the Association. One 1/12 of the annual assessment shall be due and payable in advance to the Association on the first day of each month.

Special assessments may be made by the Board of Administration from time to time to meet other needs or requirements of the Association in the operation and management of the condominium and to provide for emergencies, repairs or replacements, and infrequently recurring items of maintenance. However, any special assessment which is not connected with an actual operating, managerial or maintenance expense of the condominium shall not be levied without the prior approval of the members owning at least three-quarters (3/4) of the apartments in the condominium.

The liability for any assessment or portion thereof may not be avoided by an apartment owner or waived by reason of such apartment owner’s waiver of the use and enjoyment of any of the common elements of the condominium or by his abandonment of his apartment.

The record owners of each unit shall be personally liable, jointly and severally, to the Association for the payment of all assessments, regular or special, made by the Association for all costs of collection or delinquent assessments. In the event assessments against a unit are not paid within sixty (60) days after their due date, the Association shall have the right to accelerate the total assessments due that year against said unit and to foreclose its lien for such assessments.

Assessments that are unpaid for over thirty (30) days after due date shall bear interest at the rate of eight percent (8%) per annum until paid.

The Association shall have a lien on each condominium parcel (the term “condominium parcel” shall include the condominium unit and the interest in the common elements and limited common elements) for any unpaid assessments and interest thereon which has been assessed against the unit owner of such condominium parcel. The said lien shall be effective from and after the time of recording in the Public Records of Brevard County, Florida, (the same being the county in which the subject condominium is located) of a claim of lien stating the description of the condominium parcel, the name of the record owner, the amount due and the date when due, and the said lien shall continue in effect until all sums secured by the lien shall have been fully paid. All such claims of lien shall include only assessments which are due and payable when the said claim of lien is recorded and all such claims of lien shall be signed and verified by an officer or agent of the corporation. Where any such lien shall have been paid in full, the party making payment thereof shall be entitled to receive a satisfaction of such lien in such form that it may be recorded in the Public Records of Brevard County, Florida. By recording a notice in substantially the following form, a unit owner or his agent or attorney may require the Association to enforce a recorded claim of lien against his condominium parcel.

Notice of Contest of Lien

TO: CANAVERAL SANDS CONDOMINIUM ASSOCIATES, INC.

You are notified that the undersigned contests the claim of lien filed by you on ___________________, and recorded in Official Records Book __________ at page ________, of the Public Records of Brevard County, Florida, and that the time within which you may file suit to enforce your lien is limited to 90 days from the date of service of this notice.

Executed this _________day of _________, 19_____.

Signed: _________________________

Owner, Agent or Attorney

After service of a copy of the Notice of Contest of Lien, the Association shall have ninety (90) days in which to file an action to enforce the lien, and if the action is not filed within that ninety (90) day period, the lien is void.

The Association may bring an action in its name to foreclose a lien for assessments in the manner a mortgage of real property is foreclosed and may also bring an action to recover a money judgment for the unpaid assessments without waiving any claim of lien.

No foreclosure judgment may be entered until at least thirty (30) days after the Association gives written notice to the unit owner of its intention to foreclose it’s lien to collect the unpaid assessments. If this notice is not given at least thirty (30) days before the foreclosure action is filed, and if the unpaid assessments, including those coming due after the claim of lien is recorded, are paid before the entry of a final judgment of foreclosure, the Association shall not recover attorney’s fees or costs. The notice must be given by delivery of a copy of it to the unit owner or by certified mail, return receipt requested, addressed to the unit owner. If any diligent search and inquiry the Association cannot find the unit owner or mailing address at which the unit owner will receive the notice, the court may proceed with the foreclosure action and may award attorney’s fees and costs as permitted by law. The notice requirements of this subsection are satisfied if the unit owner records a Notice of Contest of Lien as provided in Section 718.116(4)

If the unit owner remains in possession of the unit and the claim of lien is foreclosed, the court in its discretion may require the unit owner to pay a reasonable rental for the unit and the Association is entitled to the appointment of a receiver to collect the rent.

The provision of Section 718.116 of the Florida Condominium Act, where the same are not in conflict with other provisions of this Article ?????? of this Declaration, are incorporated herein by reference and made a part hereof.

The Association has the power to purchase the condominium parcel at the foreclosure sale and to hold, lease, mortgage and convey it.

When the mortgagee of a first mortgage of record, or other purchaser, of a condominium unit obtains title to the condominium parcel as a result of foreclosure of the first mortgage, or as the result of a deed given in lieu of foreclosure, such acquirer of title and his successors and assigns shall not be liable for the share of the common expenses or assessments by the Association pertaining to the condominium parcel or chargeable to the former unit owner of the parcel which became due prior to acquisition of title as a result of the foreclosure, unless the share is secured by a claim of lien for assessments that is recorded prior to the recording of the foreclosed mortgage. The unpaid share of common expenses or assessments are common expenses collectible from all of the unit owners, including such acquired, his successors and assigns. The foregoing provision may apply to any mortgage or records and shall not be restricted to the first mortgages of record. A first mortgagee acquiring title to a condominium parcel as a result of foreclosure, or a deed in lieu of foreclosure, may not during the period of its ownership of such parcel, whether or not such parcel is unoccupied be excused from the payment of some or all of the common expenses coming due during the period of such ownership.

Any unit owner has the right to require from the Association a certificate showing the amount of unpaid assessments against him with respect to this condominium parcel. The holder of a mortgage or other lien of record has the same right as to any condominium parcel upon which he has a lien.

Any first mortgagee may make use of any unit acquired as may facilitate the sale including, but no limited to, the showing of the property and the display of “For Sale Signs” and neither the other apartment owners nor the corporation shall interfere with the sale of such apartments.

As to priority between the lien of a recorded mortgage and the lien for any assessment, the lien for assessment shall be subordinate and inferior to any recorded mortgage unless the assessment is secured by a claim of lien which is recorded prior to the recording date of the mortgage.

Any person purchasing or encumbering a unit shall have the right to rely upon any statement made in writing by an officer of the Association regarding assessments against units which have already been made and which are due and payable to the Association and the Association and the members shall be bound thereby. No action or suit shall be brought to enforce foreclosure of any lien arising under this Declaration after two (2) years from the date of any unpaid assessment.

The Association may at any time require owners to maintain a minimum balance on deposit with the corporation to cover future assessments. Said deposit shall be uniform for similar units, in accordance with the percentage set out hereinabove, and shall in no event exceed three (3) months’ assessment. Anything in this Declaration or the exhibits attached hereto to the contrary notwithstanding, the provisions of said Declaration and exhibits attached hereto, shall not be applicable, effective or binding insofar as the management of the condominium or the levying of assessments is concerned, until actual management of the condominium project is delivered and turned over by the developer to the nonprofit corporation mentioned hereinabove, except, however, the owners shall place members on the Board of Administration in accordance with the schedule as follows: When unit owners other than the Developer own fifteen percent (15%) or more of the units, the unit owners shall be entitled to elect not less than one-third (1/3) of the member of the Board of Administration. Unit owners other than the Developer shall be entitled to elect not less than a majority of the members of the Board of Administration three (3) years after sales by the Developer have been closed on fifty percent (50% of the units, or three (3) months after sales have been closed by the Developer on ninety percent (90% of the units, or when all of the units have been completed and some of them have been sold and none of the others are being offered for sale in the ordinary course of business, whichever shall occur first. Until a turnover is perfected as set out above, the Developer shall retain management of the condominium project, and in so doing shall collect all assessments, the same being payable to the Developer during this interim. The Developer shall, during this interim, have a lien on each parcel for any unpaid assessments thereon, against the unit owner and condominium parcel, and have the same remedies of personal action and/or foreclosure of said lien to perfect collection.

A unit owner, regardless of how title is acquired, including, without limitation, a purchaser at a judicial sale, shall be liable for all assessments coming due while he is an owner of a unit. In a voluntary conveyance the grantee shall be jointly and severally liable with the grantor for all unpaid assessments against the latter for his share of the common expenses up to the time of such voluntary conveyance, without prejudice to the rights of the grantee to recover from the grantor the amount paid by grantee therefore.

IX. INSURANCE COVERAGE USE AND DISTRIBUTION OF PROCEEDS, REPAIR OR RECONSTRUCTION AFTER CASUALTY

All insurance policies upon the condominium property shall be purchased by the Association. The named insured shall be the Association and the apartment owners and their mortgages as their interest may appear. Provisions shall be made for the issuance of mortgagee endorsements and/or memoranda of insurance to the apartment owners and their mortgages.

The Association shall be required to obtain and maintain casualty insurance and flood insurance covering all improvements upon the land, including all parts of the building, both exterior and interior, and including fixtures, as are ordinarily covered by similar types of insurance policies, in an amount equal to the maximum insurable replacement value, exclusive of foundation and excavation costs, as determined annually by the insurance carrier, or, if approved by the Board of Administration such insurance may be carried on not less than full insurable value basis. The coverage shall afford protection against loss or damage by fire, windstorm, and other hazards covered by a standard extended coverage endorsement, and such other risks as shall be customarily covered with respect to buildings similar in construction, location and use, including but not limited to vandalism and malicious mischief. The Association shall also be required to carry public liability insurance in sufficient amounts to provide adequate protection to the Association and its members. All liability insurance maintained by the Association shall contain cross liability endorsements to cover liability of the apartment owners as a group to each apartment owner.

The Association may carry such other insurance, or obtain such other coverage as the Board of Administration may determine to be desirable. Employer’s liability insurance shall be obtained if necessary to comply with the Workmen’s Compensation Law.

The premiums upon all insurance policies shall be paid by the Association as an operating expense.

Any proceeds becoming due under the casualty insurance policy or policies for loss, damage or destruction sustained to the building or other improvements, shall be payable to the Association, the owners and the mortgages which have been issued loss payable endorsements and/or memoranda of insurance.

In the event any loss, damage or destruction to the insured premises is not substantial (as such term “substantial” is hereinafter defined), and such loss, damage or destruction is replaced, repaired or restored with the Association’s funds, the first mortgages which are named as payees upon the draft issued by the insurance carrier shall endorse the draft and deliver the same to the Association, provided, however, that any repair and restoration on account of physical damage shall restore the improvements to substantially the same condition as existed prior to the casualty.

Substantial loss, damage or destruction as the term is herein used, shall mean any loss, damage or destruction sustained to the insured improvements which would require an expenditure of sums in excess of ten percent (10%) of the amount of coverage under the Association’s casualty insurance policy or policies then existing, in order to restore, repair or reconstruct the loss, damage or destruction sustained.

Any casualty insurance proceeds becoming due by reason of substantial loss, damage or destruction sustained to the condominium improvements shall be payable to the Association and all first mortgages which shall have been issued loss payable mortgagee endorsements, and such proceeds shall be made available to the first mortgagee which shall hold the greater number of mortgages encumbering the apartments in the condominium, which proceeds shall be held in a construction fund to provide for the payment of all work, labor and materials to be furnished for the reconstruction , restoration and repair of the condominium improvements. Disbursements from such construction fund shall be by usual and customary construction loan procedures. No fee whatsoever shall be charged by such first mortgagee for its services in the administration of the construction loan fund. Any sums remaining in the construction loan fund after the completion of the restoration, reconstruction and repair of the improvements and full payment therefore shall be paid over to the Association and held for, and/or distributed to the apartment owners in proportion to each apartment owner’s share of common surplus. If the insurance proceeds payable as the result of such casualty are not sufficient to pay the estimated costs of such restoration, repair and reconstruction, which estimate shall be made prior to proceeding with restoration, repair or reconstruction, the Association shall levy a special assessment against the apartment owners for the amount of such insufficiency, and shall pay said sum into the aforesaid construction loan fund.

Notwithstanding which first mortgagee holds the greater number of mortgages encumbering the apartments, such mortgages may agree between themselves as to which one shall administer the construction loan fund.

If the damage sustained to the improvements is less than substantial, as heretofore defined, the Board of Administration may determine that it is in the best interest of the Association to pay the insurance proceeds into a construction fund to be administered by an institutional first mortgagee as hereinabove provided. No institutional first mortgagee shall be required to cause such insurance proceeds to be made available to the corporation prior to commencement or completion of any unnecessary restoration, repairs or reconstruction, unless arrangements are made by the Association to satisfactorily assure that such restoration, repairs and reconstruction shall be completed. Such assurances may consist of, without limitation, obtaining (1) a construction loan from other sources, (2) a binding contract with a contractor or contractors to perform the necessary restoration, repairs and reconstruction, and (3) the furnishing of performance and payment bonds.

Any restoration, repair or reconstruction made necessary through a casualty shall be commenced and completed as expeditiously as reasonable possible, and must substantially be in accordance with the plans and specification for the construction of the original building. In no event shall any reconstruction or repair change the relative locations and approximate dimensions of the common elements and of any apartment, unless an appropriate amendment is made to the Declaration.

Where physical damage has been sustained to the condominium improvements and the insurance proceeds have not been paid into a construction loan fund as hereinabove more fully provided, and where restoration, repair or reconstruction has not been commenced, an institutional mortgagee who has commenced foreclosure proceedings upon a mortgage encumbering an apartment, shall be entitled to receive that portion of the insurance proceeds apportioned to said apartment in the same share as the share in the common elements appurtenant to said apartment.

f. If substantial loss, damage or destruction shall be sustained to the condominium improvements, and at a special members’ meeting called for such purpose, the owners of twenty-three (23) apartments in the condominium vote and agree in writing that the damaged property will not be repaired or reconstructed, the condominium shall be terminated provided, however, such termination will not be effective without the written consent of all first mortgages holding mortgages encumbering apartments.

X. RESPONSIBILITY FOR MAINTENANCE AND REPAIRS

Each apartment owner shall bear the cost and be responsible for the maintenance, repair and replacement, as the case may be, of all air-conditioning and heating equipment, electrical and plumbing fixtures, kitchen and bathroom fixtures, and all other appliance or equipment including any fixtures and/or their connections required to provide water, light, power, telephone, sewage and sanitary service to his apartment and which may now or hereafter be affixed or contained within his apartment. Such owner shall further be responsible for maintenance, repair and replacement of any air-conditioning equipment servicing his apartment although such equipment may not be located in the apartment, and of any and all wall, ceiling and floor surfaces, painting, decoration and furnishings and all other accessories which such owner may desire to place or maintain therein.

The Association, at its expense, shall be responsible for the maintenance, repair and replacement of all the common elements and limited common elements, including those portions thereof which contribute to the support of the building, and all conduits, ducts, plumbing, wiring and other facilities located in the common elements, for the furnishing of utility service to the apartments, and including artesian wells, pumps, piping, and fixtures serving individual air-conditioning units. Painting and cleaning of all exterior portions of the building, including all exterior doors and windows, except sliding glass doors and screens opening onto patio porches and walkways shall also be the Association’s responsibility. Should any damage be caused to any apartment by reason of any work which may be done by the Association in the maintenance, repair or replacement of the common elements, the corporation shall bear the expense of repairing such damage.

Where loss, damage or destruction is sustained by casualty to any part of the building, whether interior or exterior, whether inside an apartment or not, whether a fixture or equipment attached to the common elements or attached to and completely located inside an apartment, and such loss, damage or destruction is insured for such casualty under the terms of the corporation’s casualty insurance policy or policies, but the insurance proceeds payable on account of such loss, damage of destruction are insufficient for restoration, repair or reconstruction, all the apartment owners shall be specially assessed to make up the deficiency, irrespective of a determination as to whether the loss, damage or destruction is to a part of the building, or to fixtures of equipment which it is an apartment owner’s responsibility to maintain.

In the event owners of a unit fail to maintain it as required herein or make any structural addition or alteration without the required written consent of the Association or an owner with an interest in any unit shall have the right to proceed in a court equity to seek compliance with the provisions hereof. The Association shall have the right to levy at any time a special assessment against the owners of the unit for the necessary sums to put the improvements within the unit in good condition and repair or to remove any unauthorized structural addition or alteration. After making such assessment, the Association shall have the right to have its employees and agents enter the unit, at reasonable times, to do such work as deemed necessary by the Board of Administration of the Association to enforce compliance with the provisions hereof.

The Board of Administration of the Association may enter into a contract with any firm, person or corporation for the maintenance and repair of the condominium property and may join with other condominium corporations on contracting with the same firm, person or corporation for maintenance and repair.

The corporation shall determine the exterior color scheme of all buildings and shall be responsible for the maintenance thereof, and no owner shall paint an exterior wall, door, window, patio or any exterior surface, etc., at any time without the written consent of the Association.

XI. USE RESTRICTIONS

No animal pets other than one (1) dog or one (1) cat may be kept or harbored in any one (1) apartment. Snakes or reptiles of any kinds may not be kept or harbored on the project and no birds or fowls except those ordinarily domesticated and kept as pets may be kept on the project.

No nuisances shall be allowed to be committed or maintained upon the condominium property, nor any use or practice that is the source of annoyance to residents or which interfere with the peaceful possession and property use of the property by its residents. All parts of the property shall be kept in a clean and sanitary condition, and no rubbish, refuse or garbage allowed to accumulate, nor any fire hazard allowed to exist. No apartment owner shall permit any use of his apartment or make use of the common elements that will increase the cost of insurance upon the condominium property.

No immoral, improper, offensive use shall be made on the condominium property not any part thereof, and all laws, zoning ordinances and regulations of all governmental authorities having jurisdiction of the condominium shall be observed.