* Declaration Anal 876.
8-18-86 5 NORTH CAROLINA BEBO DURHAM COUNTY BRA TAYLOR, ELLIS & ADAMS, PA ✓ FOST OFFICE BOX 19764 RELA, ORTH CAROLINA 27619 BOOK 1256 PAGE 738 DECLARATION OF COVENANTS, CONDITIONS AND RESTRICTIONS FOR THE HOMEPLACE, AT FORTUNE RIDGE, SECTION ONE, RECORDED IN BOOK OF MAPS 109, PAGE 199, DURHAM COUNTY REGISTRY THIS DECLARATION, made on the date hereinafter set forth by HOYING-HUFF INVESTMENT PROPERTIES, INC., a North Carolina corporation, hereinafter referred to as the "Declarant;" WITNESSETH: THAT WHEREAS, the Declarant is the owner of certain property lying within the City of Durham, Durham County, North Carolina, consisting of approximately 4.1588 acres which is more particularly described as Section 1, Fortune Ridge, as shown on the map recorded in Book of Maps 109, Page 199, Durham County Registry; and WHEREAS, Declarant will convey the said properties, subject to certain protective covenants, conditions, restrictions, reservations, liens and charges as hereinafter set forth; NOW, THEREFORE, Declarant hereby declares that all of the properties described above shall be held, sold and conveyed subject to the following easements, restrictions, covenants and conditions, all of which are for the purpose of enhancing and protecting the value, desirability, and attractiveness of the real property. These easements, covenants, restrictions, and conditions shall run with the real property and shall be binding on all parties having or acquiring any right, title or interest in the described properties or any part thereof, and shall inure to the benefit of each owner thereof.
THIS DOCUMENT HAS NO PAGE 2 AND NO PAGE 3.
00894 5608 Section 1.
BOOK 1256 PAGE 739 ARTICLE I DEFINITIONS "Fortune Ridge Association" shall
ereof, and shall inure to the benefit of each owner thereof.
THIS DOCUMENT HAS NO PAGE 2 AND NO PAGE 3.
00894 5608 Section 1.
BOOK 1256 PAGE 739 ARTICLE I DEFINITIONS "Fortune Ridge Association" shall mean and refer to THE HOMEPLACE AT FORTUNE RIDGE TOWNHOMES ASSOCIATION, INC., its successors and assigns.
Section 2. "Properties" shall mean and refer to that certain real property hereinbefore described, and such additions thereto as may hereafter be brought within the jurisdiction of the Fortune Ridge Association.
Section 3. "Common Area" shall mean all real property, private streets, and amenities located thereon owned by the Fortune Ridge Association for the common use and enjoyment of members of the Fortune Ridge Association.
Section 4. "Lot" shall mean and refer to any plot of land containing a single townhome shown upon any recorded map of a portion of the properties with the exception of the Common Area.
Section 5. "Member" shall mean and refer to every person or entity who holds membership in the Fortune Ridge Association.
Section 6. "Owner" shall mean and refer to the record owner, whether one or more persons or entities, of a fee simple title to any Lot which is a part of the Properties, including contract sellers, but excluding those having such interest merely as security for the performance of an obligation.
Section 7. "Declarant" shall mean and refer to HOYING-HUFF INVESTMENT PROPERTIES, INC., and its successors and assigns to whom the rights of Declarant hereunder are expressly transferred, in whole or in part, and subject to such terms and conditions as the Declarant may impose.
Section 8. "Person" shall mean and refer to any individual, corporation, partnership, association, trustee, or other legal entity.
Section 9 BOOK 1256 PAGE 740
conditions as the Declarant may impose.
Section 8. "Person" shall mean and refer to any individual, corporation, partnership, association, trustee, or other legal entity.
Section 9 BOOK 1256 PAGE 740 "Building" shall mean and refer to a multi-unit residential structure, constructed or erected on the Property.
Section 10. "Board of Directors" or "Board" means those persons elected or appointed and acting collectively as the Directors of the Fortune Ridge Association.
include: Section 11. "Common Expenses" shall mean and (a) All sums lawfully assessed by the Fortune Ridge Association against its members, (b) Expenses of administration, maintenance, repair, or replacement of the Common Areas; (c) Expenses declared to be common expenses by the provisions of this Declaration or the Bylaws: (a) Expenses agreed by the members to be common expenses of the Fortune Ridge Association; (e) Expenses for maintenance of the townhomes and private steets as provided in this Declaration; (f) Hazard, liability or such other insurance premiums as the Declaration or the Bylaws may require the Fortune Ridge Association to purchase; (g) Ad valorem taxes and public assessment charges lawfully levied against common areas; (h) Unpaid assessments resulting from the purchase of a townhome at a foreclosure sale (such assessment shall be collectible from all members of the Fortune Ridge Association, including the purchaser at the foreclosure sale, his successors and assigns).
Section 12. "Amenities" shall mean the facilities constructed, erected or installed on the Common Areas.
Section 13. "Woodcroft Association" shall mean and refer to Woodcroft Community Association, Inc., its successors and assigns.
Section 14.. "Woodcroft Declaration" shall mean
lled on the Common Areas.
Section 13. "Woodcroft Association" shall mean and refer to Woodcroft Community Association, Inc., its successors and assigns.
Section 14.. "Woodcroft Declaration" shall mean and refer to that Declaration of Covenants and Restrictions of the Woodcroft Community Association and Woodcroft 5 BOOK 1256 PAGE 741 Company, a North Carolina Partnership, recorded in Book 1165, Page 994, Durham County Registry, and to that Declaration of Rights, Restrictions, Affirmative Obligations and Conditions Applicable To All Property in Woodcroft Section 15.
recorded in Book 1166, Page 1, Durham County Registry.
"Fortune Ridge Declaration" shall mean and refer to this Declaration of Covenants, Conditions and Restrictions.
Section 16. "Townhome" shall mean and refer to a dwelling or place of residence constructed upon a Lot within the Property and constituting a part of a building.
ARTICLE II ANNEXATION OF ADDITIONAL PROPERTIES Section 1. Annexation by Members.
Annexation of additional Property shall require the assent of two-thirds (2/3) of the Class A membership and two-thirds (2/3) of the Class B membership, if any.
Section 2. Annexation by Declarant. If within 5 years of the date of incorporation of this Association, the Declarant should develop additional lands within the boundaries of the following tract, such additional lands may be annexed to said Properties without the assent of the Class A members: Being all of the property described on Exhibit "A" attached hereto and incorporated herein by reference.
Section 3. Method of Annexation. Annexation of additional Properties shall be accomplished by recording in the Durham County Registry a Declaration of Annexation, duly executed by the Declarant if the Declarant has the right to
tion. Annexation of additional Properties shall be accomplished by recording in the Durham County Registry a Declaration of Annexation, duly executed by the Declarant if the Declarant has the right to annex pursuant to Section 2 above (and by the Association if pursuant to Section 1 above), describing the lands annexed and incorporating the provisions of this Declaration, either by reference or by fully setting out said provisions of this Declaration. The additional lands shall be deemed annexed to the Properties on the date of recordation of the Declaration of Annexation, and in the case of an annexation BOOK 1256 PAGE 742 by the Declarant, no action or consent on the part of the Fortune Ridge Association or any other person or entity shall be necessary to accomplish the annexation except the City of Durham if required by its ordinances.
Section 4. Conveyance of Common Area Upon Annexation. Subsequent to recordation of the Declaration of Annexation by the Declarant, the Declarant shall deliver to the Fortune Ridge Association one or more deeds conveying any Common Area within the lands annexed as such Common Area is developed, as set forth in Article V, Section 3 of this Declaration.
.
ARTICLE III MEMBERSHIP Every person or entity who is a record owner of a fee or undivided fee interest in any Lot which is subject to this Declaration, including contract sellers, shall be a member of the Fortune Ridge Association. The foregoing is not intended to include persons or entities who hold an interest merely as security for the performance of an obligation. No Owner shall have more than one membership.
Membership shall be appurtenant to and may not be separated from ownership of any Lot which is subject to assessment by
the performance of an obligation. No Owner shall have more than one membership.
Membership shall be appurtenant to and may not be separated from ownership of any Lot which is subject to assessment by the Fortune Ridge Association. Ownership of such Lot shall be the sole qualification for membership. The Board of Directors may make reasonable rules relating to the proof of ownership of a Lot in this Subdivision.
ARTICLE IV VOTING RIGHTS Section 1. Voting Classes. The Fortune Ridge Association shall have two classes of voting membership: Class A. Class A members shall be all those Owners as defined in Article III with the exception of the Declarant. Class A members shall be entitled to one vota for each Lot in which they hold the interest required for membership by Article III. When more than one person holds such interest in any Lot, all such persons shall be members.
7 BOOK 1256 PAGE 743 The vote for such Lot shall be exercised as they among themselves determine, but in no event shall more than one vote be cast with respect to any Lot and no fractional vote may be cast with respect to any Lot.
Declarant.
Class B. The Class B member shall be the The Class B member shall be entitled to three (3) votes for each Lot in which he holds the interest required for membership by Article III; provided, that the Class B membership shall cease and be converted to Class A membership on the happening of either of the following events, whichever occurs first: (a) when the total votes outstanding in Class A membership equal the total votes outstanding in Class B membership, but provided that the Class B membership shall be reinstated if thereafter and before the time stated in subparagraph (b) below, such additional lands are annexed to
outstanding in Class B membership, but provided that the Class B membership shall be reinstated if thereafter and before the time stated in subparagraph (b) below, such additional lands are annexed to the Properties without the assent of Class A members on account of the development of such additional lands by the Declarant, all as provided for in Article II, Section above, or (b) on December 31, 1992.
Section 2. Suspension of Voting Rights. The right of any Member to vote may be suspended by the Board of Directors for just cause pursuant to its rules and regulations.
ARTICLE V PROPERTY RIGHTS Section 1. Members' Easements of Enjoyment.
Every member shall have a right and easement of enjoyment in and to the Common Area, including the rights of ingress andegress, and such easement shall be appurtenant to and shall pass with the right to every Lot, subject to the following provisions: (a) The right of the Fortune Ridge Association, in accordance with its Articles and Bylaws and with the assent of members entitled to cast two-thirds (2/3) of the 8 GOCK 1256 PAGE 744 votes of the entire Class A membership and two-thirds (2/3) of the entire Class B membership, if any, to borrow money for the purpose of improving the Common Area and facilities and in aid thereof to mortgage said property unless prohibited by law, and the rights of such mortgagee in said properties shall be subordinate to the rights of the homeowners hereunder; (b) The right of the Fortune Ridge Association to dedicate or transfer all or any part of the Common Area to any public agency, authority, or utility for such purposes and subject to such conditions as may be agreed to by the Members; provided, however, that no conveyance of Limited Common Area shall deprive any Member of the full use
y, or utility for such purposes and subject to such conditions as may be agreed to by the Members; provided, however, that no conveyance of Limited Common Area shall deprive any Member of the full use thereof. No such dedication or tranfer shall be effective unless an instrument signed by members entitled to cast two-thirds (2/3) of the votes of the Class A membership and two-thirds (2/3) of the votes of the Class B membership, if any, has been recorded, agreeing to such dedication or transfer, and unless written notice of the proposed action is sent to every Member not less than 30 days nor more than 60 days in advance.
Section 2. Delegation of Use. Any Member may delegate, in accordance with the Bylaws, his right of enjoyment to the Common Area and facilities to the Members of his family, his tenants, or contract purchasers who reside on the Property.
Section 3. Title to the Common Area. The Declarant hereby covenants for itself its heirs and assigns, that it will convey fee simple title to the Common Area shown on the aforementioned map recorded in Book of Maps 109, Page 199, Durham County Registry, to the Fortune Ridge Association, free and clear of all encumbrances and liens, prior to the conveyance of the first Lot, except utility and drainage easement and easement to governmental authorities.
Similarly, the Declarant will convey to the Fortune Ridge Association Common Areas as those portions are annexed in BOOK 1256 PAGE 745 the future until all Common Areas, as shown on plans approved by the City of Durham, have been conveyed to the Fortune Ridge Association.
Section 4. Parking Rights. The Fortune Ridge Association may regulate all parking, including, but not limited to the parking of vehicles, boats, trailers,
en conveyed to the Fortune Ridge Association.
Section 4. Parking Rights. The Fortune Ridge Association may regulate all parking, including, but not limited to the parking of vehicles, boats, trailers, airplanes, motor homes and other such items on the Common Area. No boats, trailers, campers, motor homes, trucks, airplanes or tractors owned by a member, his guests, or family members shall be parked within the right of way of any public or private street in or adjacent to Fortune Ridge Townhomes; nor shall any of these be regularly parked on the Properties except in areas designated by the Fortune Ridge Association. The Fortune Ridge Association shall from time to time adopt appropriate rules for the temporary parking of these items on the Properties.
Section 5. TV Antennas. The Fortune Ridge Association may regulate or prohibit the erection of television antennas or placement of satellite dishes on individual lots.
ARTICLE VI COVENANT FOR ASSESSMENTS Section 1.
Creation of the Lien and Personal Obligation of Assessments. The Declarant, for each Lot owned within the Property, hereby covenants, and every other owner of any Lot by acceptance of a deed therefor, whether or not it shall be so expressed in any such deed or other conveyance, is deemed to covenant and agree to pay to the Fortune Ridge Association: (a) Annual assessments or charges which are common expenses; and (b) (c) Special assessments for capital improvements.
Special assessments for purhase and reconstruction of townhomes as hereinafter provided.
Notwithstanding any provision herein to the contrary the assessment for each Lot owned by Declarant 10 1 BOOK 1256 PAGE 796 shall be twenty-five percent (258) of the assessment which would have otherwise been due.
Furthermore, any provision
the contrary the assessment for each Lot owned by Declarant 10 1 BOOK 1256 PAGE 796 shall be twenty-five percent (258) of the assessment which would have otherwise been due.
Furthermore, any provision of this Declaration to the contrary notwithstanding, the Declarant may, at his election, postpone, in whole or in part, the date on which the assessment shall commence as to a lot or lots provided the Declarant maintains the common areas for which no assessment is being collected during the period of such postponement.
Such assessments shall be fixed, established, and collected from time to time as hereinafter provided.
The annual and special assessments, together with such interest thereon and costs of collection thereof, as hereinafter provided, shall be a charge on the land and shall be a continuing lien upon the Lot and improvements against which each such assessment is made. Each such assessment, together with such interest and costs and reasonable attorney's fees, shall also be the personal obligation of the person who was the owner of the Lot at the time the assessment fell due. The personal obligation of an owner for delinquent assessments shall not pass to his successors in title unless expressly assumed by them. All assessments shall be shared equally by the owners of each Lot, except as otherwise provided in this section.
Section 2. The assessments levied by the Fortune Ridge Association shall be used exclusively for promoting the recreation, health, safety, and welfare of the residents of Fortune Ridge; enforcing the covenants and the rules of the Fortune Ridge Association; improving and maintaining the Common Areas, including private streets; and paying all common expenses.
Section 3 Amount of Assessment.
(a) Initial Assessment. To and including
rtune Ridge Association; improving and maintaining the Common Areas, including private streets; and paying all common expenses.
Section 3 Amount of Assessment.
(a) Initial Assessment. To and including December 31, 1986, the annual assessment shall not be in excess of three hundred sixty dollars per Lot, the exact amount of which shall be determined from time to time as provided in Subsection (d) of this Section 3.
11 BOOK 1256 PAGE 747 (b) Increase by Directors. From and after December 31, 1986, the annual assessment effective for any year may be increased from and after January 1 of the succceeding year by the Board of Directors, without a vote of the membership, by a percentage which may not exceed seven (7%) percent per year from the date of the last increase.
(c) Increase by Members.
From and after December 31, 1986, the annual assessment may be increased by a percentage greater than permitted by this Article by an affirmative vote of two-thirds (2/3) of each class of members who are voting in person or by proxy, at a meeting duly called for such purpose, written notice of which, setting forth the purpose of the meeting, shall be sent to all members not less than thirty (30) days nor more than sixty (60) days in advance of the meeting. The limitations herein set forth shall not apply to an increase in assessments undertaken as an incident to a merger or consolidation in which the Fortune Ridge Association is authorized to participate under its Articles of Incorporation.
(d) Criteria for Establishing Annual Assessment.
The Fortune Ridge Association is required to set the annual assessments high enough to enable the Fortune Ridge Association to establish and maintain an adequate reserve fund for the periodic maintenance, repair and replacement of
is required to set the annual assessments high enough to enable the Fortune Ridge Association to establish and maintain an adequate reserve fund for the periodic maintenance, repair and replacement of improvements to the Common Areas. The fund shall be maintained out of the annual assessments for common expenses as provided for in this article. In establishing the subdivision portion of annual assessment for any assessment year, the board of directors shall set the annual assessment high enough to cover all current costs and expenses of the Fortune Ridge Association, any accrued debts, and reserves for future needs.
12 BOOK 1256 PAGE 748 (e) Decrease of Assessment. The Board of Directors may decrease the annual assessment from time to time if in its opinion such decrease is prudent.
written Section 4. Special Assessments for Capital Improvements. In addition to the annual assessments authorized above, the Fortune Ridge Association may levy, in any assessment year, a special assessment applicable to that year only for the purpose of defraying, in whole or in part, the costs of construction or reconstruction, unexpected repair, or replacement of a described capital improvement upon the Common Area, including the necessary fixtures and personal property related thereto, provided that any such assessment proposed by the Fortune Ridge Association shall have the assent of two-thirds (2/3) of the votes of each class of members who are voting in person or by proxy at a meeting duly called for this purpose, notice of which, setting forth the purpose of the meeting, shall be sent to all members not less than thirty (30) days nor more than sixty (60) days in advance of the meeting.
The amount of the proposed assessment need not be stated.
e purpose of the meeting, shall be sent to all members not less than thirty (30) days nor more than sixty (60) days in advance of the meeting.
The amount of the proposed assessment need not be stated.
Section 5. Special Assessments for the Purchase and Reconstruction of Townhomes. In the event that any townhome located on the Property is substantially destroyed by fire or other hazard, the owner shall give written notice to the Association within thirty (30) days following such destruction of whether he intends to repair or reconstruct the townhome; and if the owner fails to give such notice to the Fortune Ridge Association, it shall be conclusively considered, for purposes of this Section, as notice that he does not intend to repair or reconstruct the townhome.
purposes of this section "substantially destroyed" shall mean that the costs of replacement or repair equals at least fifty percent (50%) of the appraised value of the improvements on the lot before they were damaged.
owner elects not to repair or reconstruct the townhome, the Fortune Ridge Association shall have the first right and For If the 13 BOOK 1256 PAGE 749 option to purchase such unit in the manner hereinafter provided. The purchase option shall be effective for a period of ninety (90) days following notice of the owner's election not to repair or reconstruct.
(a) Exercise of Option. The Board of Directors shall appoint a committee or shall designate an existing committee of the Fortune Ridge Association, to determine whether failure to rconstruct the damaged townhome will result in substantial pecuniary injury to the Fortune Ridge Association or diminution in value of the remaining Property. The committee may employ such persons, including, but not limited to, real estate appraisers, realtors,
uniary injury to the Fortune Ridge Association or diminution in value of the remaining Property. The committee may employ such persons, including, but not limited to, real estate appraisers, realtors, architects, and engineers, as are reasonably necessary to make its determination, and shall report its conclusions, with supporting data, in writing to the Board within fifteen (15) days. The report shall set forth such matters as the Board and committee deem pertinent, but shall contain estimates of the pecuniary injury and diminution in value along with an estimate of the cost of purchase and reconstruction of the townhome.
If the Board of Directors determines that it would be advantageous to the Fortune Ridge Association and/or to the remaining Property to purchase and reconstruct the townhome, it shall call a special meeting by giving written notice thereof, setting forth the purpose of the meeting, to all members within seven (7) days following submission of the committee report. The special meeting of members shall be held not less than seven (7) days nor more than fifteen (15) days following notice to members. Upon an affirmative vote of at least sixty-six and two-thirds percent (66-2/38) of each class of membership present and voting, the Board will be authorized to purchase and reconstruct the townhome and to assess all lots equally for all costs and expenses arising out of the purchase and repair or reconstruction of the townhome. The Board may require that the assessment be paid in a lump sum, in installments during an assessment 14 BOOK 1256 PAGE 750 year, or over a period of two (2) or more assessment years, as the Board, in its discretion, shall determine to be appropriate.
Such an assessment shall be in addition to, and
nt 14 BOOK 1256 PAGE 750 year, or over a period of two (2) or more assessment years, as the Board, in its discretion, shall determine to be appropriate.
Such an assessment shall be in addition to, and not in lieu of, the annual assessments provided for in Section 2 and the special assessment provided for in Section 4 of this Article.
(b) Determination of Value. The owner of the townhome shall convey marketable title thereto to the Fortune Ridge Association upon payment to the owner by the Fortune Ridge Association of the fair market value of the lot and townhome in its damaged condition. Fair market value shall be determined in any manner agreed upon by the Fortune Ridge Association and the owner. If they cannot otherwise agree on a fair market value of method of determining fair market value, each shall appoint an appraiser and those two appraisers shall appoint a third appraiser. The fair market value as determined by any two of these three appraisers shall be final and binding on all parties. Each party shall pay the fee of the appraiser selected by it or him, and each party shall pay one-half (1/2) of the fee of the third appraiser. If the Board and the owner agree upon a single appraiser, each shall pay one-half (1/2) the cost of the appraisal.
(c) Application of Insurance Proceeds. The owner of the townhome, prior to conveyance to the Fortune Ridge Association, shall apply or cause to be applied so much of the proceeds of any hazard insurance paid by reason of the damage or destruction of the townhome as shall be necessary to pay all liens, mortgages, deeds of trust, taxes and encumbrances upon the lot so that the fee simple marketable title thereto may be conveyed free and clear of all liens and encumbrances. If the insurance proceeds are not
ges, deeds of trust, taxes and encumbrances upon the lot so that the fee simple marketable title thereto may be conveyed free and clear of all liens and encumbrances. If the insurance proceeds are not sufficient to pay all liens, encumbrances, and obligations upon the lot, the purchase price shall be reduced by an amount adequate to pay any such deficiency.
15 BOOK 1256 PAGE 751 (d) Failure to Exercise Option. If the Fortune Ridge Association does not exercise the purchase option herein provided for, the owner may retain the lot or may transfer or convey it, upon such terms and conditions as he may elect, to any person, to be used solely as a site of an attached, single-famiy townhome unit. The reconstructed or repaired townhome unit shall be substantially identical to the destroyed townhome unit, unless a change shall be approved by the Board, and shall be constructed in conformity with plans submitted to and approved by the Board prior to construction.
(e) Retention by Owner. If a townhome is not habitable by reason of damage, and the owner gives notice of his election to repair or reconstruct the townhome, the obligation of the owner to pay annual assessment installments shall not be suspended. In the event a townhome is damaged or destroyed, or the owner does not begin repair or reconstruct within thirty (30) days following the damage or destruction, he shall remove or cause to be removed, at his expense, all debris from the lot, so that it shall be placed in a net, clean, and safe condition and if he fails to do so, the Fortune Ridge Association may cause the debris to be removed, and the cost of removal shall constitute a lien upon the townhome and its lot until paid by the owner, unless the lot is thereafter acquired by the Fortune Ridge Association.
(f)
debris to be removed, and the cost of removal shall constitute a lien upon the townhome and its lot until paid by the owner, unless the lot is thereafter acquired by the Fortune Ridge Association.
(f) Reconstruction by the Fortune Ridge Association. Upon acquisition of title to the townhome, the Fortune Ridge Association is authorized to arrange such financing and execute such notes, mortgages, deeds of trust, and other instruments, to enter into such contracts, and to do and perform such other matters and things as are necessary to accomplish the reconstruction of the townhome; provided, however, that only that townhome which is to be reconstructed shall stand as security for any liens, mortgages, or obligations arising out of the purchase or 16 !
BOOK 1256 PAGE 752 reconstruction of the townhome, and no other portion of the Property shall be pledged, hypothecated, mortgaged, deeded in trust or otherwise given as security for any obligations arising out of said purchase or reconstruction, and no member shall be required to become personally obligated therefor.
The Fortune Ridge Association shall hold title to the lot and improvements for the benefit of all members.
The Board may lease or sell the lot and improvements upon such terms and conditions as it, in its discretion, deems most advantageous to the members. The lease rental shall be applied in the following order of priority: (1) to the payment of taxes, assessment, liens, encumbrances, and obligations on or secured by the lot; (2) to the maintenance, upkeep, and repair of the townhome; (3) to payment or repayment to the members, pro rata, of the special assessment, if any, for purchase and reconstruction of the townhome; and (4) to the general expenses of the In the event the Lot is sold,
payment or repayment to the members, pro rata, of the special assessment, if any, for purchase and reconstruction of the townhome; and (4) to the general expenses of the In the event the Lot is sold, Fortune Ridge Association.
the purchase price shall be applied in the following order of priority: (1) to the payment of taxes, assessments, liens, encumbrances, and obligations on or secured by the lot; (2) to payment or repayment to the members, pro rata, of the special assessment if any, for purchase and reconstruction of the townhome; and (3) to the general expenses of the Association.. Any payment or repayment to members of the special assessment may be in cash or may be applied to the annual assessment due or to become due.
(g) Application of Declaration and Bylaws. Any townhome (including the Lot on which it was constructed) which is destroyed and not subsequently restored or reconstucted and any townhome which has been destroyed in whole or in part, by fire or other casualty, and is subsequently restored or reconstructed shall be subject to the provisions of the Fortune Ridge and Woodcroft 17 BOOK 1256 PAGE 753 Declaration and to the Bylaws of the Fortune Ridge and Woodcroft Association.
Section 6. Uniform Rate of Assessment.
Both annual and special assessments must be fixed at a uniform rate for all Lots, on a per Lot basis, and may be collected on a monthly basis or less frequently, in the discretion of the Board of Directors.
Section 7.
Quorum for Any Action Authorized Under Sections 3, 4 and 5.
At the first meeting called, as provided in Section 3, 4 and 5 of this Article, the presence at the meeting of members or of proxies entitled to cast sixty percent (608) of all the votes of each class of membership shall constitute a quorum. If the required
and 5 of this Article, the presence at the meeting of members or of proxies entitled to cast sixty percent (608) of all the votes of each class of membership shall constitute a quorum. If the required quorum is not forthcoming at any meeting, subsequent meetings may be called, subject to the notice requirement set forth in sections 3, 4, and 5 and the required quorum at any such subsequent meeting shall be one-half (1/2) of the required quorum at the next preceding meeting. No such subsequent meeting shall be held more than sixty (60) days following the next preceding meeting.
Section 8. Date of Commencement of Annual Assessments: Due Dates. The annual assessments provided herein for Lots shall be paid in equal monthly installments and the payment of such shall commence as to each Lot on the first day of the first month following the date that all common area adjacent to the Lot in question has been conveyed to the Fortune Ridge Association. The first annual assessment shall be adjusted according to the number of months remaining in the calendar year. The Board of Directors shall fix the amount of the annual assessment against each Lot at least thirty (30) days in advance of each annual assessment period. Written notice of the annual assessment shall be sent to every owner subject thereto.
The due dates shall be established by the Board of Directors.
The Fortune Ridge Association, upon demand at any time, shall furnish a certificate in writing signed by 18 BOOK 1256 PAGE 754 an officer of the Fortune Ridge Association setting forth whether the assessments on a specified lot have been paid.
A properly executed certificate of the Fortune Ridge Association as to the status of assessments on a lot is binding upon the Fortune Ridge Association as of the date of its issuance.
have been paid.
A properly executed certificate of the Fortune Ridge Association as to the status of assessments on a lot is binding upon the Fortune Ridge Association as of the date of its issuance.
Remedies of the Assocation.
Section 9. Effect of Nonpayment of Assessments: Any assessments or portion thereof which are not paid when due shall be delinquent.
If the assessment or portion thereof is not paid within thirty (30) days after the due date, the same shall bear interest from the date of delinquency at the highest rate then permitted by the regulations of the Federal Housing Administration (FHA) and the regulations of the Veterans Administration (VA); provided, however, that if the highest rate permitted by FHA and VA are not the same, the interest rate shall be the lower of rates permitted by these two agencies. The Fortune Ridge Association may bring an action against the owner personally obligated to pay the assessment, and interest, costs, late payment charges and reasonable attorney's fees of any such action shall be added to the amount of such assessment. If any law permits the filing of a lien and the foreclosure of such lien or other similar action, as a method of enforcement of the Fortune Ridge Association's right to collect assessments, the Fortune Ridge Association may use such remedy. No owner may waive or otherwise escape liability for the assessment provided for herein by nonuse of the Common Area or abandonment of such owner's Lot.
Section 10. Subordination of Lien to Mortgages.
The lien of the assessments provided for herein shall be subordinate to the lien of any first mortgage. Any sale or transfer of any Lot shall not affect the assessment liens; provided, however, that the sale or transfer of any Lot
ovided for herein shall be subordinate to the lien of any first mortgage. Any sale or transfer of any Lot shall not affect the assessment liens; provided, however, that the sale or transfer of any Lot pursuant to mortgage foreclosure or any proceeding in lieu of foreclosure thereof, shall extinguish the lien of such 19 BOCK 1256 PAGE 755 assessments as to payments which became due prior to such No sale or transfer shall relieve such sale or transfer.
Lot from the liability for any assessment thereafter becoming due or from the lien thereof.
Section 11. Two Months Assessments to be Collected at Closing. At the closing of each sale of a Lot, a sum shall be collected equal to the total assessment for such Lot for the succeeding two months and such sum shall be contributed to the general operating fund of the Fortune Ridge Association to be used in the manner specified for annual assessments. This contribution shall not be considered an advance against assessments to become due.
ARTICLE VII EXTERIOR MAINTENANCE The Fortune Ridge Association shall provide maintenance of Common Areas (and all amenities and structures located therein, including but not limited to private drives) and exterior maintenance upon each townhome which is subject to assessment hereunder, as follows: Stain and/or paint all exteriors, replace roofs, replace, repair and care for walks, trees, shrubs, grass and other such exterior improvements and landscaping, and clean and repair gutters. Such exterior maintenance shall not include glass surfaces.
Any owner who fences or encloses or screens by plants or structures the rear portion of his lot (which fence, enclosure and screen shall require the prior approval of the Fortune Ridge Association), may plant trees, shrubs,
encloses or screens by plants or structures the rear portion of his lot (which fence, enclosure and screen shall require the prior approval of the Fortune Ridge Association), may plant trees, shrubs, flowers, and grass in the fence or enclosed portion as he elects and shall maintain the fenced or enclosed portion at his own expense, provided that such maintenance does not hinder the Fortune Ridge Association in performing its maintenance duties as to the townhome, the remaining yard space, or the Common Area. No such maintenance by an owner shall reduce the assessment payable by him to the Fortune Ridge Association. If, in the opinion of the Fortune Ridge 20 1 BOOK 1256 PAGE 756 Association, any such owner fails to maintain his rear yard in a neat and orderly manner, the Fortune Ridge Association may revoke the owner's maintenance rights for a period not to exceed one year and the Fortune Ridge Association shall perform maintenance during the revocation period. The owner shall not plant any vegetation (specifically including, but not limited to flowers, trees, shrubs, vegetables, vines and moss) in front of his townhome except with the prior written approval of the Fortune Ridge Association.
In the event that the need for maintenance or repair of a lot or the improvements thereon is caused through the willful or negligent acts of its owner, or his family, tenants, contract purchasers, guests, or invitees, or is caused by fire, lightning, windstorm, hail, explosion, riot, riot attending a strike, civil commotion, aircraft, vehicles, or smoke, as the forgoing are defined and explained in North Carolina standard fire and extended coverage insurance policies, or for the purpose of correcting, repairing or alleviating any emergency condition
, as the forgoing are defined and explained in North Carolina standard fire and extended coverage insurance policies, or for the purpose of correcting, repairing or alleviating any emergency condition provided for in Article XI, Section 5, (but only if such would normally be an expense of the lot owner), the cost of such maintenance, replacement, or repairs shall be added to and become a part of the assessment to which such lot is subject.
ARICLE VIII PARTY WALLS Section 1. General Rules of Law to Apply.
Each wall which is built as a part of the original construction of the townhomes upon the property and placed on the dividing line between the lots shall constitute a party wall, and, to the extent not inconsistent with the provisions of this Article, the general rules of law regarding party walls and liability for property damage due to negligence or wilful acts or omissions shall apply thereto.
21 BOOK 1256 PAGE 757 Section 2. Sharing of Repair and Maintenance.
The cost of reasonable repair and maintenance of a party wall shall be shared by the owners who make use of the wall in proportion to such use.
Section 3. Destruction by Fire or Other Casualty.
If a party wall is destroyed or damaged by fire or other casualty any owner who has used the wall may restore it, and if the other owners thereafter make use of the wall, they shall contribute to the cost of restoration thereof in proportion to such use, without prejudice, however, to the right of any such owner to call for a larger contribution from the others under any rule of law regarding liability for negligent or willful acts or omissions.
Section 4.
Weatherproofing. Notwithstanding any other provision of this Article, an owner who by his negligent or willful act causes the party wall to be exposed
egligent or willful acts or omissions.
Section 4.
Weatherproofing. Notwithstanding any other provision of this Article, an owner who by his negligent or willful act causes the party wall to be exposed to the elements shall bear the whole cost of furnishing the necessary protection against such elements and all repairs necessitated by such negligent or willful act.
Setion 5. Right to Contribution does Not Run With land.
The right of any owner to contribution from any other owner under this Article shall not be appurtenant to the Land and shall not pass to such owner's successors in title.
Section 6. Easement and Right of Entry for Repair, Maintenance and Reconstruction.
Every owner shall have an easement and right of entry upon the lot of any other owner to the extent reasonably necessary to perform repair, maintenance, or reconstruction of a party wall and those improvements belonging to one lot which encroach on an adjoining lot or common area. Such repair, maintenance, or reconstruction shall be done expeditiously, and, upon completion of the work, the owner shall restore the adjoining lot or lots to as near the same condition as that which prevailed prior to commencement of the work as is reasonably practicable.
22 BOOK 1256 PAGE 758 Section 7. Arbitration. In the event of any dispute arising concerning a party wall, or under the provisions of this Article, such dispute shall be settled by arbitration as provided under the laws of the State of North Carolina as they now are or are hereafter amended.
ARTICLE IX ARCHITECHTURAL CONTROL & INSPECTION Except for initial improvements by Declarant, no construction, erection, or installation of any improvements, including, but not limited to, residences, outbuildings,
CHITECHTURAL CONTROL & INSPECTION Except for initial improvements by Declarant, no construction, erection, or installation of any improvements, including, but not limited to, residences, outbuildings, fences, walls, screens (whether by plants or structures) and other structures, shall be undertaken upon the Properties unless the plans and specifications therefor, showing the nature, kind, shape, height, materials and location of the proposed improvements shall have been submitted to the Declarant or its agent and expressly approved in writing.
No subsequent alteration or modification of any existing improvements nor construction, erection, or installation of additional improvements may be undertaken on any of the Properties without prior review and express written approval of the Board of Directors of the Fortune Ridge Association, or by an architectural committee composed of three (3) or more representatives appointed by the Board of the Villages Association.
In general, no exterior alterations or additions to buildings or garages shall be considered for approval unless such alterations or additions are in harmony with existing structures as to style, shape, color and size.
However, this section shall not be construed to mean that the Architectural Committee or Board shall have to approve a proposed alteration or addition that meets the above criteria.
In general, the construction or painting of fences, walls, screens, and other structures will not be permitted if in the opinion of the Declarant, Board, or Architectural Committee, as applicable, such construction or 23 BOOK 1256 PAGE 759 planting constitutes an unreasonable obstruction of the view of another owner.
In the event that the Declarant or the Fortune Ridge Association, as the case may be, fails to approve or
K 1256 PAGE 759 planting constitutes an unreasonable obstruction of the view of another owner.
In the event that the Declarant or the Fortune Ridge Association, as the case may be, fails to approve or disapprove the site of design of any proposed improvements within thirty (30) days after plans and specifications therefore have been submitted and received, approval will not be required, and the requirements of this Article will be deemed to have been fully met; provided, that the plans and specifications required to be submitted shall not be deemed to have been received by the Declarant or the Fortune Ridge Association if they contain erroneous data or fail to present adequate information upon which the Declarant of the Fortune Ridge Association, as the case may be, can arrive at a decision.
The Declarant and/or the Fortune Ridge Association (as applicable) shall have the right, at its election, but shall not be required, to enter upon any of the Properties during site preparation or contruction, erection, or installation of improvements to inspect the work being undertaken and to determine that such work is being performed in conformity with the approved plans and specifications and in a good and workmanlike manner, utilizing approved methods and good quality materials.
ARTICLE X USE RESTRICTIONS Section 1. Rules and Regulations. The Board of Directors of the Fortune Ridge Association shall have the power to formulate, amend, publish, and enforce reasonable rules and regulations concerning the use and enjoyment of the front yard space of each lot and the common area. Such rules and regulations, along with all policy resolutions and policy actions taken by the Board of Directors, shall be recorded in a Book of Resolutions which shall be maintained
the common area. Such rules and regulations, along with all policy resolutions and policy actions taken by the Board of Directors, shall be recorded in a Book of Resolutions which shall be maintained in a place convenient to the owners and available to them for inspection during normal business hours.
24 BOOK 1256 PAGE 760 Section 2. Use of Property.
Each building, the townhomes therein, and the common area and facilities shall be for the following uses and subject to the following restrictions, and, in addition, to those set forth in the Bylaws: (a) All buildings and the common area and facilities shall be used for residential and related common purposes. Each townhome shall be used as a single-family residence and for no other purpose, except that the Declarant may use one or more townhomes for offices and/or model townhomes for sales purposes consistent with the Code of Ordinances of Durham. However, a resident, upon approval of the Board of Directors, may operate an office in his unit upon such terms and conditions as the Board of Directors may direct, provided the necessary approval is also secured from the City of Durham.
(b) Nothing shall be kept and no activity shall be carried on in any building or townhome or on the common area and facilities which will increase the rate of insurance, applicable to residential use, for the Property or the contents thereof. No owner shall do or keep anything, nor cause or allow anything to be done or kept, in his townhome or on the common area and facilities which will result in the cancellation of insurance on any portion of the Property, or the contents thereof, or which will be in violation of any law, ordinance, or regulation. No waste shall be committed on any portion of the common area and facilities.
any portion of the Property, or the contents thereof, or which will be in violation of any law, ordinance, or regulation. No waste shall be committed on any portion of the common area and facilities.
(c) No immoral, improper, offensive, or unlawful use shall be made of the Property, or any part thereof, and all duly enacted laws, ordinances, and regulations of all governmental agencies having jurisdiction thereof shall be observed. All laws, order, rules, regulations or requirements of any governmental agency having jurisdiction thereof, relating to any portion of the Property, shall be complied with, by and at the sole expense of the owner of 25 BOOK 1256 PAGE 701 the Association, whichever shall have the obligation to maintain or repair such portion of the Property.
(d} Nothing shall be done in or to any townhome or in, to, or upon any of the Common Areas and facilities which will impair the structural integrity of any building, townhome, or portion of the Common Areas and facilities or which would impair or alter the exterior of the any building, townhome, or portion of the Common Areas and facilities or which would impair or alter the exterior of any building or portion thereof, except in the manner provided in this Declaration.
(e) No industry, business, trade, occupation, or profession of any kind, whether commercial or otherwise, shall be conducted, maintained, or permitted on any part of the Property, except as set out in (a) of this section.
(f) No owner shall display, or cause or allow to be displayed, to public view any sign, placard, poster, billboard, or identifying name or number upon any townhome, building, or any portion of the common area and facilities, except as allowed by the Association pursuant to its bylaws
gn, placard, poster, billboard, or identifying name or number upon any townhome, building, or any portion of the common area and facilities, except as allowed by the Association pursuant to its bylaws or as required by Durham City Code; provided, however, that during the development of the Property and the marketing of townhomes, the Declarant may maintain a sales office and may erect and display such signs as the Declarant deems appropriate as aids to such development and marketing, provided that such signs do not violate any applicable laws.
(g) No person shall undertake, cause, or allow any alteration or construction in or upon any portion of the Common Area and facilities except at the direction or with the express written consent of the Association.
(h) The Common Area and facilities shall be used only for the purposes for which they are intended and reasonably suited and which are incident to the use and occupancy of the townhomes, subject to any rules or regulations that may be adopted by the Association pursuant to its bylaws.
26 BOOK 1256 PAGE 762 Section 3. Quiet Enjoyment. No obnoxious or offensive activity shall be carried on upon the Property, nor shall anythig be done which may be or may become a nuisance or annoyance to residents within the Property.
ARTICLE XI EASEMENTS Section 1. Walks, Drives, Parking Areas and Utilities. All of the Property, including lots and Common Area, shall be subject to such easements for private streets, driveways, walkways, parking areas, water lines, irrigation systems, sanitary sewers, storm drainage facilities, gas lines, telephone and electric power lines, television antenna lines, cable television and other public utilities as shall be established prior to subjecting the
sewers, storm drainage facilities, gas lines, telephone and electric power lines, television antenna lines, cable television and other public utilities as shall be established prior to subjecting the Property to this Declaration by the declarant, and the Association shall have the power and authority to grant and to establish in, over, upon, and across the Common Area conveyed to it such further easements as are requisite for the convenient use and enjoyment of the Property.
The Declarant reserves the right to subject the real property covered by this Declaration to a contract with Duke Power Company for the installation of underground electric cables and/or the installation of street lighting, either or both of which may require an initial payment and/or a continuing monthly payment to Duke Power Company by the owner of each building.
Section 2. Easements Appurtenant to Lots. All Common Areas shall be subject to an easement in favor of every Lot, which easement shall be deemed appurtenant to each such Lot, whereby the owner of each such Lot and such owner's family, guests and invitees shall be entitled to use them as a means of ingress, egress and regress to his Lot and for such other uses as shall have been designated. Such easement shall be superior to the lien of every mortgage or deed of trust.
27 Section 3.
BOOK 1256 PAGE 703 Encroachments.
All lots and the Common Area shall be subject to easements for the If encroachment of initial improvements constructed on adjacent lots by the Declarant to the extent that such initial improvements actually encroach, including, without limitation, such items as overhanging eaves, stoops, gutters, downspouts, exterior storage rooms and walls.
any encroachment shall occur subsequent to subjecting the
ually encroach, including, without limitation, such items as overhanging eaves, stoops, gutters, downspouts, exterior storage rooms and walls.
any encroachment shall occur subsequent to subjecting the Property to this Declaration as a result of settling or shifting of any building or as a result of any permissible repair, contruction, reconstruction, or alteration, there is herby created and shall be a valid easement for such encroachment and for the maintenance of the same.
Every lot shall be subject to an easement for entry and encroachment by the Declarant for a period not to exceed eighteen (18) months following conveyance of a lot to an owner for the purpose of correcting any problems that may arise regarding trading and drainage. The Declarant, upon making entry for such purpose, shall restore the affected lot or lots to as near the original condition as practicable.
Section 4. Structural Support. Every portion of a townhome which contributes to the structural support of the building shall be burdened with an easement of structural support for the benefit of all other townhomes within the building.
Section 5. Emergencies. Every lot and townhome shall be subject to an easement for entry by the Association for the purpose of correcting, repairing, or alleviating any emergency condition which arises upon any lot or within any townhome and that endangers any building or portion of the Common Area.
Section 6. Easement for Governmental Agencies.
An easement is hereby established over the Common Area for the benefit of applicable governmental agencies, public utility companies and public service agencies as necessary for setting, removing and reading of meters, replacing and 28 BOOK 1256 PAGE 764 maintaining water, sewer and drainage facilities,
es, public utility companies and public service agencies as necessary for setting, removing and reading of meters, replacing and 28 BOOK 1256 PAGE 764 maintaining water, sewer and drainage facilities, electrical, telephone, gas and cable antenna lines, fire fighting, garbage collection, postal delivery, emergency and rescue activities and law enforcement activities.
ARTICLE XII RIGHTS OF FIRST MORTGAGEES AND INSURERS OF FIRST MORTGAGES Any institutional holder of a first mortgage on a Lot will, upon request, be entitled to (a) inspect the books and records of the Fortune Ridge Association during normal business hours, (b) receive an annual audited financial statement of the Fortune Ridge Association within ninety (90) days following the end of its fiscal year, (c) receive written notice of all meetings of the Fortune Ridge Association and the right to designate a representative to attend all such meetings (d) receive written notice of any condemnation or casualty loss that affects either a material portion of the project or the Lot securing its mortgage, (e) receive written notice of any sixty (60) day delinquency in the payment of assessments or charges owed by the Owner of any Lot on which it holds the mortgage, (f) receive written notice of a lapse, cancellation, or material modification of any insurance policy or fidelity bond maintained by the Fortune Ridge Association, (g) receive written notice of any proposed action that requires the conent of a specified percentage of mortgage holders, and (h) be furnished with a copy of insurance policy, if applicable.
Section 1.
ARTICLE XIII GENERAL PROVISIONS Enforcement. The Fortune Ridge Association, or any owner, shall have the right to enforce, · by any proceeding at law or inequity, all restrictions,
licable.
Section 1.
ARTICLE XIII GENERAL PROVISIONS Enforcement. The Fortune Ridge Association, or any owner, shall have the right to enforce, · by any proceeding at law or inequity, all restrictions, conditions, covenant, reservations, liens, and charters now or hereafter imposed by the provisions of this Declaration.
Failure by the Fortune Ridge Association or by any owner to enforce any covenant or restriction herein contained shall 29 BOOK 1256 PAGE 705 in no event be deemed a waiver of the right to do so thereafter.
• Section 2. Insurance.
Every Owner shall maintain in full force and effect at all times fire and hazard insurance in an amount equal to the full insurable value of his townhome except that the amount shall not be required to exceed the replacement cost of the townhome. An Owner shall exhibit to the Board, upon demand, evidence that such insurance is in effect. If any Owner shall fail to maintain such insurance, the Board is authorized to obtain such insurance in the name of the Owner from an insurer selected by the Board, and the cost of such insurance shall be included in the annual assessment of the Owner and shall constitute a lien against such Owner's Lot until paid.
In the event the Fortune Ridge Association becomes the Owner of any buildings, or other improvements, or personal property, located within the common areas or such other areas that the Fortune Ridge Association is responsible for, the board of directors shall obtain hazard insurance (if available) in an amount equal to the maximum insurable replacement value as determined annually by the board of directors with the assistance of the insurance company providing such coverage. Such coverage shall provide protection against loss or damage by fire and other
e as determined annually by the board of directors with the assistance of the insurance company providing such coverage. Such coverage shall provide protection against loss or damage by fire and other hazards covered by a standard extended coverage endorsement, and such other risks as from time to time shall be customarily covered with respect to buildings and properties similar in construction, location and use.
The board of directors shall also procure and maintain public liability and property damage insurance, insuring: each member of the board of directors; the manager, if any; and the Association against any liability to the public or to townhome owners (and their invitees, agents, and employees) arising out of or incident to the ownership and/or use of the common areas and facilities, or such other areas for which the Fortune Ridge Association is 30.
BOOK 1256 PAGE 766 responsible. The insurance shall be issued on a comprehensive laibility basis and shall contain a cross liability endorsement under which the rights of each named insured under the policy shall not be prejudiced with respect to his action against another named insured. The amount of such public liability insurance shall be determied by the Board of Directors, but in no event shall it be less than $1 million per occurrence with regard to the Fortune Ridge Association and each individual director.
There shall also be obtained such other insurance coverage as the Board of Directors shall determine from time to time to be desirable and necessary. Premiums upon insurance policies purchased by the board of directors shall be paid by the board of directors as a common expense of the Fortune Ridge Assocation.
(Recommendation to owners If a townhome is damaged by fire or other casualty, and if such damage
directors shall be paid by the board of directors as a common expense of the Fortune Ridge Assocation.
(Recommendation to owners If a townhome is damaged by fire or other casualty, and if such damage results in damage to an adjacent attached unit, there may be prolonged disputes between the insurance carriers of the adjacent damaged units (which may, in turn, delay the settlement of claims) unless the insurance protection on both units is provided by the same carrier. It is therefore recommended that the owners of all townhomes located within each building purchase their fire and casualty insurance from the same insurance carrier.)
Section 3. Severability.
Invalidation of any one of these covenants or restrictions by judgment or court order shall in no way affect any other provisions, which shall remain in full force and erfect.
Section 4. FHA/VA Approval.
Notwithstanding any provisions in this instrument to the contrary, as long as there is a Class B membership, and if Declarant desires to qualify sections of this subdivision for Federal Housing Administration or Veterans Administration approval (but not otherwise), the following action will require the prior approval of Federal Housing Administration or the Veterans 31 Administration: BOOK 1256 PAGE 707 Annexation of additional properties, amendment of this Declaration of Covenants, Conditions and Restrictions, merger and consolidations, and dissolution.
Section 5. Amendment. The covenants, conditions and restrictions of this Declaration shall run with and bind the land for a term of thirty (30) years from the date this Declaration is recorded, after which time they shall be automatically extended for two successive periods of ten (10) years each. This Declaration may be amended during the
0) years from the date this Declaration is recorded, after which time they shall be automatically extended for two successive periods of ten (10) years each. This Declaration may be amended during the first thirty (30) year period by an instrument signed by the owners of not less than ninety percent (90%) of the Lots, and thereafter by an instrument signed by the owners of not less than seventy-five percent (75%) of the Lots. All amendments shall be certified as an official act of the Fortune Ridge Association and shall forthwith be recorded in the Durham County Registry. All amendments shall beome effective upon recordation.
If any Section 6. Certification of Amendment.
amendment to these covenants, conditions and restrictions is executed, each such amendent shall be delivered to the Board of Directors of the Fortune Ridge Association.
the Board of Directors, shall, within thirty (30) days do the following: Thereupon, (a) Reasonably assure itself that the amendment has been executed by the Owners of the required number of Lots. (For this purpose, the Board may rely on its roster of members and shall not be required to cause any title to any Lot to be examined); (b) Attach to the amendment a certification as to its validity, which certification shall be executed by the Fortune Ridge Association in the same manner that deeds are executed. The following form of certification is suggested: CERTIFICATION OF VALIDITY OF AMENDMENT TO COVENANTS, CONDITIONS AND RESTRICTIONS OF FORTUNE RIDGE By authority of its Board of Directors, Fortune Ridge Townhomes Association hereby certifies that the 1 32