146 2 BOOK TAGE 2407 0443 000059 ARTICLE NUMBER DECLARATION FOR CHESNEY PLACE ADMITTED TO RECORD TABLE OF CONTENTS 28 DAY OF AT.
1 SECTION NUMBER July 1998 1:01 AM MARY SUE COTS REGISTER OF DEEDS NEW HANOVER COURAGE 2 GENERAL PROVISIONS 1 1.1. Definitions 1.2. Construction of Association Documents 1.3. Chesney Place Owners Association, Inc COMMON ELEMENTS 2.1. Conveyance and Title 2.3. Regulation of Common Elements 2.2. No Dedication 2.4. Leasing of Common Elements 3 EASEMENTS .
3.1. Development Easements 22660 8 8 00 00 00 00 0 8 8 9 00 9 9 3.4. Limitations on Exercise of Rights 3.2. Association Power to Make Dedications and Grant Easements 3.3. Easement for Upkeep and Easements 12 12 22 13 3.5. Emergency Access 13 3.6. Easement for Use of Common Elements 3.7. Priority and Enforcement of Easements 14 15 4 DEVELOPMENT OF THE PROPERTY 15 4.1. Expansion by the Declarant 15 4.2. Expansion by the Association 4.3. Procedure for Expansion 16 17 5567 5 SPECIAL DECLARANT RIGHTS: TRANSFER 17 5.1. Special Declarant Rights 17 5.2. Transfer of Special Declarant Rights 18 6 COMMON EXPENSES AND ASSESSMENTS 18 6.1. Determination of Common Expenses and Assessments 18 6.2. Assessments and Common Expenses 19 6.3. Exemptions 6.4. Liability for Common Expenses 6.5. Collection of Assessments 6.6. Statement of Common Expenses RETURNED TO Ward and Smith 392-5100 24 24 25 25 534674 7 OPERATION OF THE PROPERTY LOCA PAGE 2407 0444 7.1. Upkeep of Common Elements and Lots 7.2. Owner Upkeep 7.3. Manner of Repair and Replacement 7.4. Additions, Alterations or Improvements by the Executive Board • 7.5. Additions, Alterations or Improvements by the Owners 7.6. Disclaimer of Liability 7.7. Services to Owners 26 26 27 28 29 28 33 8 RESTRICTIONS ON USE OF LOTS AND COMMON ELEMENTS;
oard • 7.5. Additions, Alterations or Improvements by the Owners 7.6. Disclaimer of Liability 7.7. Services to Owners 26 26 27 28 29 28 33 8 RESTRICTIONS ON USE OF LOTS AND COMMON ELEMENTS; RULES AND REGULATIONS 8.1. Permitted Uses 33 8.2. Restrictions 34 8.3. Rules and Regulations 38 8.4. Leasing Restrictions 39 33480 mmmmm 33 8.5. Exclusion for the Declarant and Designees of the Declarant 39 9 COVENANTS COMMITTEE 39 9.1. Covenants Committee 39 9.2. Subcommittees of the Covenants Committee 9.3. Compensation of the Covenants Committee 42 42 22222 10 INSURANCE 43 10.1. Authority to Purchase 10.3. Liability Insurance 43 10.2. Physical Damage Insurance 44 46 10.4. Other Insurance 47 11 RECONSTRUCTION AND REPAIR 48 11.1. When Reconstruction or Repair of Common Elements Required 48 11.2. Procedure for Reconstruction and Repair of Common Elements 49 11.3. Disbursement of Construction Funds for Common Elements 49 11.4. When Reconstruction and Repair of Common Elements Not Required 51 22 12 COMPLIANCE AND DEFAULT 51 12.1. Relief 51 12.2. Lien for Assessments 55 12.3. Subordination and Mortgage Protection 57 33 13 MORTGAGES • 13.1. Notice to Executive Board གཔ 57 57 13.2. Notices to Mortgagees 57 13.3. Other Rights of Mortgagees 58 14 CONDEMNATION 14.1. Definition 15 16 14.2. Taking of Common Elements AMENDMENT, EXTRAORDINARY ACTIONS 15.1. Amendment by the Declarant ECCK TAGE 2407 0445 59 59 61 62 288 2 222222 666 63 63 63 59 60 60 60 60 60 15.2. Amendment by the Association 15.3. HUD/VA Approval 15.4. Prerequisites 15.5. Extraordinary Actions of the Associati 15.6. Application of Future Statutory Law Governing Property Owners Associations TERMINATION 16.1. Termination by the Association 16.2. Prerequisites BOOK PAGE 2407 0446 of DECLARATION FOR CHESNEY PLACE
.6. Application of Future Statutory Law Governing Property Owners Associations TERMINATION 16.1. Termination by the Association 16.2. Prerequisites BOOK PAGE 2407 0446 of DECLARATION FOR CHESNEY PLACE This Declaration made and entered into as of the 24th day July.
1998, by and between HARRIS RESIDENTIAL Carolina limited liability company INC., Trustee; CONSTRUCTION, LLC, a North (hereinafter "Declarant"); SOUTHLAND ASSOCIATES, CENTRAL CAROLINA BANK AND TRUST COMPANY; and ALL PROSPECTIVE PURCHASERS AND OWNERS of any of the property hereinafter described including, but not limited to, that shown on Exhibit A; WITNESSETH: WHEREAS, Declarant owns in fee simple the real estate designated as Submitted Property and described on Exhibit A to this Declaration and has elected to subject the Submitted Property to covenants, restrictions, reservations, easements, servitudes, liens and charges, all of which are more particularly set forth hereinafter; certain WHEREAS, Declarant anticipates that it may acquire fee simple title to certain real estate in the vicinity or the Submitted Property and may elect hereafter to subject all or any portion of such real estate subsequently acquired by Declarant to the provisions of this Declaration and the amendments thereto, such said property to be designated as the Additional Property; WHEREAS, Declarant deems it desirable and in the best interests of all the prospective purchasers and owners of the real estate subject to this Declaration to protect the value and desirability of such real estate by providing for the development of such real estate in accordance with a common plan and the maintenance of certain shared facilities; and, WHEREAS, to provide a means for meeting the purposes and
te by providing for the development of such real estate in accordance with a common plan and the maintenance of certain shared facilities; and, WHEREAS, to provide a means for meeting the purposes and intents set forth herein, Declarant has caused to be created Chesney Place Owners Association, Inc., a nonprofit corporation incorporated under Chapter 55A of the General Statutes of North Carolina (North Carolina Nonprofit Corporation Act).
NOW, THEREFORE, Declarant does hereby covenant and declare, on behalf of itself and its successors and assigns, that P2407 0447 the real estate designated as Submitted Property in Exhibit A hereto shall, from the date this Declaration is recorded in the office of the Register of Deeds of New Hanover County, North Carolina, be held, conveyed, acquired and encumbered subject to the terms and provisions hereof, all of which shall run with the real estate and bind and inure to the benefit of all prospective purchasers and parties who may acquire any right, title, estate or interest in or to any of such real estate or who may acquire any right of occupancy or entrance upon any portion thereof, all subject to the right of the Declarant or the Association to amend this Declaration according to its terms and to add all or any portion of the Additional Property to be subject to this Declaration.
Section 1.1.
ARTICLE 1 GENERAL PROVISIONS Definitions. Terms used throughout this Declaration shall have the meanings specified for such terms below unless the context otherwise requires: ( 1 ) "Additional Property" means such real property as may be subsequently acquired by Declarant within a radius of one mile of the Submitted Property and which Additional Property Declarant may submit to this Declaration and to the jurisdiction of
rty as may be subsequently acquired by Declarant within a radius of one mile of the Submitted Property and which Additional Property Declarant may submit to this Declaration and to the jurisdiction of the Association, or any real estate that the Association may submit to the Declaration and assume jurisdiction over pursuant to Section 4.2.
(2) "Articles" or "Articles of Incorporation" means the Articles of Incorporation of Chesney Place Owners Association, Inc., as may be amended from time to time.
(3) "Association" Association, Inc.
( 4 ) "Association means Chesney Place Owners Documents" means collectively the Articles of Incorporation, this Declaration, the Bylaws and the Rules and Regulations adopted by the Association, all as may be 2 FASE 2407 0448 amended, restated and revised from time to time. Any exhibit, schedule ΟΥ amendment to an Association considered a part of that document.
Document shall be (5) "Bylaws" means the bylaws of the Chesney Place Owners Association, Inc.
(6) "Common Elements" means any real estate within the Property owned or leased by the Association other than a Lot and, any and all personal property and fixtures owned, leased, maintained or operated by the Association for the benefit of the Property or the Owners.
(7) "Common Expenses" means expenditures made by or financial obligations or liabilities of the Association, together with any allocations to reserves.
(8) "Common Expense Liability" means the liability for common expenses allocated to each Lot pursuant to Section 6.2.
(9) "Covenants Committee" means the committee that may be established by the Executive Board pursuant to Article 9 to assure that the Property shall be owned, maintained, operated, enjoyed and used in a manner consistent with the purposes and
tee that may be established by the Executive Board pursuant to Article 9 to assure that the Property shall be owned, maintained, operated, enjoyed and used in a manner consistent with the purposes and intent of this Declaration.
(10) "Declarant" means Harris Residential Construction, LLC, its successors or assigns.
(11) "Declaration" means this Declaration for Chesney Place and all amendments, restatements and revisions hereto including all amendments to the Declaration amending the provisions herein submitting Additional Property to the terms of this Declaration and the jurisdiction of the Association.
(12) "Design Guidelines" means the standards developed by the Covenants Committee pursuant to Article 9 and any standards established by the Declarant prior to the submission of real estate to this Declaration by an hereto adding Additional Property.
amendment 3 BOOK 2407 FAGE 0449 (13) "Development Period" means the period ending on the earliest of: (a) The later of five (5) years from the date of the recordation of this Declaration or two (2) years from the date of recordation of the most recent amendment to the Declaration made by the Declarant adding Additional Property; provided, however, that once the Development Period has expired, the recordation of a subsequent amendment to the Declaration shall not reinstate the Development Period; and provided, further, that if the Declarant is delayed in the improvement and development of the Property as a result of a sewer, water or building permit moratorium or other cause or event beyond the Declarant's control, then the aforesaid period shall be extended for the length of the delay or two (2) years, whichever is less, upon written notice to the Association of such extension;
t beyond the Declarant's control, then the aforesaid period shall be extended for the length of the delay or two (2) years, whichever is less, upon written notice to the Association of such extension; (b) Or the date specified by Declarant in a written notice to the Association that the Development Period is to terminate on that date.
(14) "Development Plan" means the plan for development of the Property and Additional Property approved by New Hanover County, as amended from time to time, and such additional development as may be approved for any Additional Property. The total number of Lots which may be created pursuant to the Development Plan is 42.
(15) "Executive Board" or "Board" means the executive and administrative entity established by the Articles and the Bylaws to act on behalf of the Association and function as the governing body of the Association.
(16) "Lot" means a separately numbered portion of the Property (but not including the real estate designated as Common Elements) on plats of the Property recorded in the office of the Register of Deeds of New Hanover County, North Carolina, and ECCK FAGE 2407 0450 includes any improvements now or hereafter appurtenant to that real estate.
Lots may be identified numerically, alphabetically or by a combination of the two. For example, a Lot may be designated as the number "1", the letter "A" or the dual designation "1A", "1B", et seq.
For purposes of the Association Documents, a Lot comes into existence on the date which a map or plat depicting said Lot is recorded in the office of the Register of Deeds of New Hanover County, North Carolina.
(17) "Majority Vote" means a simple majority (more than fifty percent (50%)) of the votes actually cast in person or by
ed in the office of the Register of Deeds of New Hanover County, North Carolina.
(17) "Majority Vote" means a simple majority (more than fifty percent (50%)) of the votes actually cast in person or by proxy at a duly held meeting of the members of the Association at which a quorum is present or at a duly held meeting of the Executive Board at which a quorum is present.
an institutional (18) "Mortgagee" means lender (commercial or savings banks, savings and loan associations, trust companies, credit unions, industrial loan associations, insurance companies and any other lender regularly engaged in financing the purchase, construction or improvement of real estate, or any assignee of loans made by such lenders) holding a first mortgage or first deed of trust ("Mortgage") encumbering a Lot.
(19) "Owner" means one or more Persons who own a Lot in fee simple but does not mean any Person having an interest in a Lot solely by virtue of a contract of purchase or as security for an obligation.
(20) "Person" means one or more natural persons, corporations, partnerships, limited liability companies, trusts or other entities capable of holding title to real estate.
(21) "Property" means, at any given time, the real estate then subject to this Declaration and includes all improvements and appurtenances thereto now or hereafter existing.
5 COOK PAGE 2407 0451 and (22) "Rules and Regulations" means the rules regulations governing the use, occupancy, operation and physical appearance of the Property adopted from time to time by the Board.
(23) "Section" means a portion of the Property designated as provided in Section 4.3 hereof.
estate (24) "Submitted Property" means the real designated as such in Exhibit A hereto and all real estate which is
ction" means a portion of the Property designated as provided in Section 4.3 hereof.
estate (24) "Submitted Property" means the real designated as such in Exhibit A hereto and all real estate which is from time to time submitted to the Declaration.
(25) "Upkeep" means care, inspection, maintenance, remodeling, restoration, repair, repainting, renovation, alteration, operation, improvement, reconstruction.
replacement and Section 1.2.
Construction of Association Documents.
(1) Caption. The captions are inserted only as a matter of convenience and for reference and do not define, limit or describe the scope of the Article, Section, Subsection or any other portion of this Declaration.
(2) Severability. Each provision of the Association Documents is severable from every other provision and the validity of any one or more provisions shall not change the meaning of or otherwise affect any other provision.
The (3) Interpretation. If there is any conflict between the Association Documents, the Declaration shall control.
Particular provisions shall control over general provisions.
provisions of the Bylaws shall control over provision of any rule, regulation or other pursuant to any of the Association Documents.
any conflicting resolution adopted Section 1.3. Chesney Place Owners Association, Inc.
( 1 ) The Association. The Association is a nonprofit corporation organized and existing pursuant to Chapter 55A of the General Statutes of North Carolina charged with the duties and vested with the powers prescribed by law and set forth in the Association Documents.
6 COCK FACE 2407 0452 (2) Membership. Members of the Association shall at all times be, and shall Owners of the Lots. If more than one Person owns a Lot, then all
t forth in the Association Documents.
6 COCK FACE 2407 0452 (2) Membership. Members of the Association shall at all times be, and shall Owners of the Lots. If more than one Person owns a Lot, then all of the Persons who own such Lot shall constitute collectively one Owner and be one member of the Association.
entitled to attend all meetings of the Association.
be limited to, the Persons who constitute Each Person is Upon Membership in the Association is mandatory.
acquiring title to a Lot, each new Owner shall immediately give written notice to the Secretary of the Association stating the name and address of such new Owner and the Lot acquired by such new Owner. If the new Owner fails to give the Secretary such notice within thirty (30) days of acquiring title to such Lot, then the costs of locating each new Owner and reasonable record keeping incurred by the Association may be assessed against such costs Owner.
(3) Classes of Members and Voting Rights. During the Development. Period, the Association shall have two (2) classes of membership as follows: (a) Class A Class A Members shall be the Owners of Lots with the exception of the Class B Member. Class A Members shall be entitled to one (1) vote for each Lot in which they hold the interest required for membership.
Declarant.
(b) Class B The Class B Member shall be the The Class B Member shall be entitled to one (1) vote for each Lot in which it holds the interest required for membership and, in addition, shall be entitled to appoint a majority of the members of the Executive Board of the Association during the Development Period as specified in the Bylaws. The Class B Member shall have a veto power over all actions of the Executive Board or any committee as may have been appointed by the Executive Board or
Development Period as specified in the Bylaws. The Class B Member shall have a veto power over all actions of the Executive Board or any committee as may have been appointed by the Executive Board or established by the Bylaws. The Class B Membership shall terminate and become converted to Class A membership upon the earlier of (i) the conveyance of seventy-five percent (758) of the Lots 7 BOOK PAGE 2407 045 3 (including those Lots which may be created pursuant to the Development Plan) to Owners other than a declarant; (ii) two (2) years after all declarants have ceased to offer Lots for sale in the ordinary course of business; (iii) two (2) years following the last exercise of the rights of a declarant to add Additional Property or (iv) when, in its discretion, the Declarant So determines.
(c) Board Authority to Act. Unless otherwise specifically provided in the Association Documents, all rights, powers, easements, obligations and duties of the Association may be performed by the Executive Board on behalf of the Association.
ARTICLE 2 COMMON ELEMENTS Section 2.1. Conveyance and Title. Declarant shall convey the Common Elements in the Property to the Association in fee simple released from any encumbrance securing the repayment of monetary obligations incurred by the Declarant, but subject to all easements and other encumbrances appearing of the public records including those created by this Declaration. The conveyance of the Common Elements as contemplated herein shall occur prior to or simultaneously with the conveyance of the first Lot to an Owner.
The Association shall accept title to real estate or personal property offered to the Association by the Declarant.
from Section 2.2. No Dedication. Nothing contained herein
the first Lot to an Owner.
The Association shall accept title to real estate or personal property offered to the Association by the Declarant.
from Section 2.2. No Dedication. Nothing contained herein shall be construed as a dedication to public use or as an assumption of responsibility for Upkeep of any Common Elements by any public or municipal agency, authority or utility, nor shall it be constructed to prevent the Board of the Association permitting public access to or use of any Common Elements.
Section 2.3. Regulation of Common Elements.
Association shall have the right to regulate the use of the Common Elements pursuant to Section 8.3 hereof and to charge fees for the use thereof. In the event the Association imposes fees for the use The 8 BOOK PAGE 0459 2407 of the Common Elements, such fees to be charged to Persons entitled to use the Common Elements shall be uniform and shall not discriminate against any one or more Persons or groups of Persons entitled to use the Common Elements. The Association may also mortgage, dedicate, convey or grant easements across the Common Elements subject to the restrictions in Section 15.5 hereof.
Section 2.4. Leasing of Common Elements.
The Association shall have the right to lease the Common Elements and improvements located thereon subject to rules, regulations and fees adopted by the Association from time to time.
Section 3.1.
ARTICLE 3 EASEMENTS Development Easements.
(1) Easements Reserved to the Declarant.
The (a) Easement to Facilitate Development.
Declarant hereby reserves to itself and its designees a nonexclusive blanket easement over and through the Property and Common Elements for all purposes reasonably related to the development and completion of improvements on the Property and
ts designees a nonexclusive blanket easement over and through the Property and Common Elements for all purposes reasonably related to the development and completion of improvements on the Property and Common Elements, including without limitation: (i) temporary slope and construction easements; (ii) drainage, corrosion control, and storm and sanitary sewer easements (including the right to cut or remove trees, bushes or shrubbery, to regrade the soil and to take any similar actions reasonably necessary; provided, however, that thereafter the Declarant shall restore the affected area as near as practicable to its original condition); (iii) easements for the storage (in a sightly manner) of reasonable supplies of building materials and equipment necessary to complete the improvements; and (iv) easements for the construction, installation and Upkeep of improvements (e.g., landscaping, street lights, signage, etc.) on the Property and Common Elements or reasonably necessary to serve the Property and Common Elements.
9 300K PAGE 2407 6455 (b) Easement to Facilitate Sales. The Declarant hereby reserves to itself and its designees the right to: (i) use any Lots owned by the Declarant, any other Lot with the written consent of the Owner thereof, or any portion of the Common Elements as models, management offices, sales offices, a visitors' center, construction offices, customer service offices or sales office parking areas; (ii) place and maintain in any location on the Common Elements and on any Lot street and directional signs, temporary promotional signs, plantings, street lights, entrance features, "theme area" signs, lighting, stone, wood or masonry walls or fences and other related signs and landscaping features;
signs, temporary promotional signs, plantings, street lights, entrance features, "theme area" signs, lighting, stone, wood or masonry walls or fences and other related signs and landscaping features; provided, however, that all signs shall comply with applicable governmental regulations and the Declarant shall obtain the consent of the Owner of any Lot upon which the improvements are to be located; and (iii) relocate, within the areas permitted by this paragraph, or remove all or any of the above from time to time at the Declarant's sole discretion. These rights and easements shall continue throughout the Development Period.
(c) Easement for Utilities and Related Services.
The Declarant hereby reserves to itself and its assignees, during the Development Period, the right to grant and reserve easements, rights of way and licenses, over, through, upon and under the Property and the Common Elements for ingress, egress, installation and Upkeep of equipment for providing to any portion of the Property or Common Elements any utilities including, without limitation, water, sewer, drainage, gas, electricity, telephone and television service, whether public or private, or for any other purpose necessary or desirable for the orderly development of the Property. Any pipes, conduits, lines, wires, transformers and any other apparatus necessary for the provision or metering of any utility may be installed, maintained or relocated where initially installed with the permission of the Declarant, where contemplated 10 BOOK 2407 PAGE 0456 on any site plan approved by the Declarant or where approved by resolution of the Executive Board.
(d) Easements for Future Access and Utilities. The Declarant hereby reserves for itself, its heirs, successors and
lan approved by the Declarant or where approved by resolution of the Executive Board.
(d) Easements for Future Access and Utilities. The Declarant hereby reserves for itself, its heirs, successors and assigns, non-exclusive easements for (i) ingress, egress and regress for pedestrian and vehicular access to and from the Additional Property, and (ii) the installation, maintenance and provision of utilities including, without limitation, water, sewer, drainage, gas, electricity, telephone and television service, whether public or private, or for any other purposes necessary or desirable for the orderly development of the Additional Property, across, under, over and upon a portion of the Common Elements, more particularly described on Exhibit C to this Declaration.
(e) Dedications. and Easements Required by Governmental Authority. The Declarant hereby reserves to itself and its designees, during the Development Period, the right to make any dedications and to grant any easements, rights-of-way and licenses required by any government or governmental agency over and through all or any portion of the Common Elements or the Property.
(2) Further Assurances. Any and all conveyances made by the Declarant to the Association with respect to any of the Common Elements or the Property shall be conclusively deemed to incorporate these reservations of rights and easements, whether or not set forth in such grants. Upon written request of the Declarant, the Association and each Owner shall from time to time execute, acknowledge and deliver to the Declarant such further assurances of these reservations of rights and easements as may be requested.
(3) Assignment of Development Rights. The Declarant may assign its rights under Section 3.1, or share such rights with, one
ssurances of these reservations of rights and easements as may be requested.
(3) Assignment of Development Rights. The Declarant may assign its rights under Section 3.1, or share such rights with, one or more other Persons, exclusively, simultaneously or consecutively with respect to the Common Elements, or Lots and Property owned by the Declarant or such Persons.
Additional The Declarant 11 BOOK 2407 PAGE 0457 shall notify the Association of any such assignment or designation by the Declarant.
Section 3.2.
Association Power to Make Dedications and Grant Easements. The Declarant, on behalf of itself and its successors and assigns, hereby also grants to the Association the equal rights and powers as reserved to the Declarant by Paragraphs 3.1 (1) (a), (b) and (c) hereof. These rights and easements may be exercised by the Association, subject to Section 15.5 hereof; provided, however, that the limitations on duration applicable to the Declarant shall not apply to the Association. If the Declarant or any Owner requests the Association to exercise its powers under this section, the Association's cooperation shall not be unreasonably withheld, conditioned or delayed.
Section 3.3. Easement for Upkeep.
( 1 ) Association Access. The Declarant, on behalf of itself and its successors and assigns, hereby grants the right of access over and through any Lot to the Association and any other Person authorized by the Executive Board in the exercise and discharge of their respective duties and responsibilities including, but not by way of limitation, those duties and responsibilities to make inspections, correct any condition originating in a Lot or in the Common Elements threatening another Lot or the Common Elements, correct drainage, perform installations
s and responsibilities to make inspections, correct any condition originating in a Lot or in the Common Elements threatening another Lot or the Common Elements, correct drainage, perform installations or Upkeep of utilities, landscaping or other improvements located on the Property for which the Association is responsible for Upkeep, or correct any condition which violates. the Association Documents. The agents, contractors, officers and directors of the Association may enter any area of any Lot (including any building) in order to utilize or provide for the Upkeep of the areas subject to easements granted in this Article to the Association.
(2) Declarant Access. Until the expiration of any applicable warranty period, the Declarant hereby reserves to itself and its designees a right of access over and through the Common 12