LEVINE & STEWART ATTORNEYS AT LAW Return to: Philip Post & Associates, Inc.
401 Providence Road, Suite 200 BOOK 2702 PAGE 298 Chapel Hill, NC 27514 DECLARATION OF HERSHEY PROFESSIONAL CENTER FILED TABLE OF CONTENTS Article 1. Submission: Definitions Section 1.1. Submission of Property Section 1.2. Definitions Article 2. Maximum Number of Units; Boundaries Maximum Number of Units BOOK 2202 PAGE 298 353 99 AUG 30 AM 11 10 WILLIE L. COVINGTON REGISTER OF DEEDS DURHAM COUNTY, N.C.
CHAPEL HILL NORTH CAROLINA Limited Common Elements Section 2.1 Section 2.2 Boundaries Article 3 Article 4.
Section 4.1.
Section 4.2.
Units Section 4.3.
Maintenance, Repair and Replacement Section 4.4.
Section 4.5.
Article 5.
Article 6.
Common Elements Limited Common Elements Access Repairs Resulting from Negligence Subsequently Allocated Limited Common Elements Development Rights and Other Special Declarant Rights Section 6.1.
Section 6.2.
Section 6.3.
Section 6.4.
Section 6.5.
Reservation of Development Rights Limitations on Development Rights Phasing of Development Rights Special Declarant Rights Models, Sales Offices and Management Offices Construction; Declarant's Easements Section 6.6.
Section 6.7.
Signs and Marketing Section 6.8.
Section 6.9.
Declarant's Personal Property Declarant Control of the Association Section 6.10. Limitations on Special Declarant Rights Section 6.11. Interference With Special Declarant Rights Article 7.
Allocated Interests Section 7.1.
Allocation of Interests Section 7.2.
Section 7.3.
38438 Formulas for the Allocation of Interests Assignment of Allocated Interests Upon Creation of Units Pursuant to Exercise of Development Rights 1188 1 LEVINE & STEWART ATTORNEYS AT LAW CHAPEL HILL, NORTH CAROLINA BOOK 2702 PAGE 299
of Interests Assignment of Allocated Interests Upon Creation of Units Pursuant to Exercise of Development Rights 1188 1 LEVINE & STEWART ATTORNEYS AT LAW CHAPEL HILL, NORTH CAROLINA BOOK 2702 PAGE 299 Article 8. Restrictions on Use. Alienation and Occupancy Section 8.1.
Section 8.2.
Use and Occupancy Restrictions Article 9.
Restrictions on Alienation ' Easements and Licenses Article 10.
Allocation and Reallocation of Limited Common Elements Article 11.
Additions, Alterations and Improvements Section 11.1. Additions, Alterations and Improvements by Unit Owners Section 11.2. Additions, Alterations and Improvements by Executive Board Article 12. Relocation of Boundaries Between Adjoining Lands Section 12.1. Application and Amendment Section 12.2. Recording Amendments Article 13. Amendments to Declaration Section 13.1.
General Section 13.2.
Limitation of Actions Section 13.3.
Recordation of Amendments Section 13.4.
When Unanimous Consent Required Section 13.5.
Execution of Amendments Section 13.6.
Special Declarant Rights Section 13.7.
Consent of Holders of Security Interests Section 13.8.
Amendments to Create Units or Add Real Estate Article 14.
Amendments to Bylaws Article 15.
Termination Article 16.
Assessment and Collection of Common Expenses Section 16.1. Apportionment of Common Expenses Section 16.2. Common Expenses Attributable to Fewer Than All Units Lien Section 16.1.
Section 16.4.
Budget Adoption and Ratification Section 16.5. Ratification of Non-Budgeted Common Expense Assessments Section 16.6. Certificate of Payment of Common Expense Assessments Section 16.7. Monthly Payment of Common Expenses Section 16.8. Acceleration of Common Expense Assessments Section 16.9. Commencement of Common Expense Assessments | ..
LEVINE & STEWART ATTORNEYS AT LAW
ection 16.7. Monthly Payment of Common Expenses Section 16.8. Acceleration of Common Expense Assessments Section 16.9. Commencement of Common Expense Assessments | ..
LEVINE & STEWART ATTORNEYS AT LAW CHAPEL HILL. NORTH CAROLINA --BOOK 2702 PAGE 300 Section 16.10. No Waiver of Liability for Common Expenses Section 16.11. Personal Liability of Unit Owners Article 17.
Article 18.
Right to Assign Future Income Persons and Units Subject to Condominium Documents Section 18.1. Compliance With Condominium Documents Section 18.2. Adoption of Rules and Regulations Article 19.
Insurance Section 19.1. Coverage Section 19.2. Property Insurance Section 19.3. Liability Insurance Section 19.4. Fidelity Bonds Section 19.5.
Unit Owner Policies Section 19.6. Workers' Compensation Insurance Section 19.7. Directors' and Officers' Liability Insurance Section 19.8. Other Insurance Section 19.9. Premiums Article 20. Damage to or Destruction of Property.
Section 20.1. Duty to Restore Section 20.2. Cost Section 20.3.
Plans Section 20.4. Replacement of Less Than Entire Property Section 20.5. Insurance Proceeds Section 20.6. Certificates by the Executive Board Article 21.
Right to Notice and Hearing Section 21.1. Right to Notice and Hearing Section 21.2. Appeals .
Article 22. Executive Board Section 22.1. Minutes of Executive Board Meetings Section 22.2. Powers and Duties Section 22.3. Executive Board Limitations Article 23.
Condemnation 1 LEVINE & STEWART ATTORNEYS AT LAW -1CHAPEL HILL NORTH CAROLINA | Article 24.
Miscellaneous BOOK 2702 PAGE 301 Section 24.1. Captions Section 24.2. Gender Section 24.3. Waiver Section 24.4. Invalidity Section 24.5. Conflict V i おみ 1 -----LEVINE & STEWART ATTORNEYS AT LAW CHAPEL HILL, NORTH CAROLINA BOOK 2702 PAGE 302
4.1. Captions Section 24.2. Gender Section 24.3. Waiver Section 24.4. Invalidity Section 24.5. Conflict V i おみ 1 -----LEVINE & STEWART ATTORNEYS AT LAW CHAPEL HILL, NORTH CAROLINA BOOK 2702 PAGE 302 DECLARATION OF HERSHEY PROFESSIONAL CENTER ARTICLE I SUBMISSION; DEFINITIONS Section 1.1. Submission of Property. Barbara T. Hershey, ("Declarant") owner in fee simple of the real estate described in Exhibit A, located within Durham County, North Carolina, hereby submits such real estate, including all improvements, easements, rights and appurtenances thereunto belonging to the provisions of Chapter 47C of the General Statutesof North Carolina, known as the North Carolina Condominium Act (“Condominium Act"), and hereby creates with respect to said real estate, a condominium to be known as "Hershey Professional Center" ("Condominium").
Section 1.2. Definitions. As used in the Condominium Documents, the following words and phrases shall have the following meanings: a. "Allocated Interests" means the undivided interest in the Common Elements and Common Expense liability and votes in the Association, allocated to Units in the Condominium. The Allocated Interests are described in Article 7 of this Declaration and shown on Exhibit B.
b.
"Association" means the Hershey Professional Center Owners' Association, Inc., a nonprofit corporation organized under Chapter 55A of the General Statutes of North Carolina. It is the Association of the Unit Owners pursuant to Section 47C-3-101 of the Condominium Act. A copy of the initial articles of incorporation are attached hereto as Exhibit D.
c. "Bylaws" means the Bylaws of the Association, as they may amended from time to time. A copy of the initial Bylaws are attached hereto as Exhibit E.
d.
the Units.
n are attached hereto as Exhibit D.
c. "Bylaws" means the Bylaws of the Association, as they may amended from time to time. A copy of the initial Bylaws are attached hereto as Exhibit E.
d.
the Units.
"Common Elements" means all portions of the Condominium other than e.
"Common Expenses" means the expenses or financial liabilities for the operation of the Condominium. These include: (i) expenses of administration, maintenance, repair or replacement of the Common Elements, including utility charges attributable to Common Elements; (ii) expenses declared to be Common Expenses by the Condominium Documents or by the Condominium Act; -2and BOOK 2702 PAGE 303 (iii) expenses agreed upon as Common Expenses by the Association; (iv) such reasonable reserves as may be established by the Association, whether held in trust or by the Association, for repair, replacement or addition to the Common Elements or any other real or personal property acquired or held by the Association.
f.
"Condominium" means the real property described in Exhibit A subject to the Declaration of The Hershey Building, a Condominium.
g.
"Condominium Documents" means this Declaration, the Plats and Plans recorded and filed pursuant to the provisions of the Condominium Act, the Bylaws, and the Rules and Regulations as they may be amended from time to time. Any exhibit, schedule, or certification accompanying a Condominium Document is a part of that Condominium Document.
h.
"Declarant" means Barbara T. Hershey, or her successor as defined in Section 47C-1-103(9) of the Condominium Act.
i.
"Development Rights" means the rights reserved by the Declarant under Article 6 of this Declaration to create Units, Common Elements, and Limited Common Elements
7C-1-103(9) of the Condominium Act.
i.
"Development Rights" means the rights reserved by the Declarant under Article 6 of this Declaration to create Units, Common Elements, and Limited Common Elements within the Condominium and to add real estate to the Condominium.
j.
"Declarant Control Period" means the period prior to the earlier of thirty (30) days after conveyance of all of the Units which may be created to Unit Owners other than the Declarant or two (2) years after the recording of the initial Declaration.
k.
"Director" means a member of the Executive Board.
1.
"Executive Board" means the board of directors of the Association LEVINE & STEWART ATTORNEYS AT LAW CHAPEL HILL. NORTH CAROLINA m.
"Improvements" means any construction, structure, fixture or facilities existing or to be constructed on the land included in the Condominium, including but not limited to, buildings, trees and shrubbery planted by the Declarant or the Association, paving, utility lines, pipes, and light poles.
..n.
"Limited Common Elements" means the portion of the Common Elements allocated for the exclusive use of one or more but fewer than all of the Units by the Declaration or by operation of Section 47C-2-102(2) and (4) of the Condominium Act. The Limited Common Elements in the Condominium are described in Article 3 of this Declaration.
0.
"Majority or Majority of Unit Owners" means the owners of more than fifty percent (50%) of the votes in the Association.
-3ATTORNEYS AT LAW CHAPEL HILL, NORTH CAROLINA P.
BOOK 2702 PAGE 304 "Manager" means a person, firm or corporation employed or engaged to perform management services for the Condominium and the Association.
q. "Notice and Hearing" means the right of a Unit Owner to receive notice of
s a person, firm or corporation employed or engaged to perform management services for the Condominium and the Association.
q. "Notice and Hearing" means the right of a Unit Owner to receive notice of an action proposed to be taken by the Association, and the right to be heard thereon. The procedures for Notice and Hearing are set forth in Section 21.1 of this Declaration.
r.
"Person" means an individual, corporation, business trust, estate, trust, partnership, association, joint venture, government, government subdivision or agency, or other legal or commercial entity.
S.
"Plats and Plans" means the Plats and Plans recorded simultaneously with this Declaration in Plat Book 5, Pages 113 through 176, Durham County Registry, and constituting a part hereof, as the same may be amended from time to time.
t. "Property" means the land, all improvements, easements, rights and appurtenances, which have been submitted to the provisions of the Condominium Act by this Declaration.
U.
"Public Offering Statement" means the current document prepared pursuant to Section 47C-4-103 of the Condominium Act as it may be amended from time to time, and provided to purchasers prior to the time of execution of a purchase agreement.
v. "Rules and Regulations" means Rules and Regulations for the use of Units and Common Elements and for the conduct of persons within the Condominium, adopted by the Executive Board pursuant to this Declaration. A copy of the Rules and Regulations are attached hereto as Exhibit G.
W.
.
"Security Interest" means an interest in real estate or personal property.
created by contract or conveyance which secures payment or performance of an obligation. The term includes a lien created by a mortgage, deed of trust, contract for deed, land sales contract,
roperty.
created by contract or conveyance which secures payment or performance of an obligation. The term includes a lien created by a mortgage, deed of trust, contract for deed, land sales contract, lease intended as security, assignment of lease or rents intended as security, pledge of an ownership interest in an Association, and any other consensual lien or title retention contract intended as security for an obligation.
✗.
Declarant to: "Special Declarant Rights" means the rights reserved for the benefit of a (i) complete improvements indicated on the Plats and Plans filed with the Declaration; (ii) exercise any Development Rights; LEVINE & STEWART -4i LEVINE & STEWART ATTORNEYS AT LAW CHAPEL HILL. NORTH CAROLINA (iii) Condominium, and models; (iv) BOOK 2702 PAGE 305 maintain sales offices, management offices, signs advertising the use casements through the Common Elements for the purpose of making improvements within the Condominium or within real estate that may be added to the Condominium; or (v) appoint or remove any officer of the Association or any Executive Board member during the Declarant Control Period.
y. "Trustee" means the entity which may be designated by the Executive Board as the Trustee for the receipt, administration, and disbursement of funds derived from insured losses, condemnation awards, special assessments for uninsured losses, and other like sources as defined in the Bylaws. If no Trustee has been designated, the Trustee will be the Executive Board from time to time constituted, acting by majority vote, as executed by the president and attested by the secretary.
Z.. "Unit" means a physical portion of the Condominium designated for separate ownership or occupancy, the boundaries of which are described in Section in Section 2.2
nt and attested by the secretary.
Z.. "Unit" means a physical portion of the Condominium designated for separate ownership or occupancy, the boundaries of which are described in Section in Section 2.2 of this Declaration.
a.a. "Unit Owner" means the Declarant or other Person who owns a Unit. Unit Owner does not include a Person having an interest in a Unit solely as security for an obligation.
The Declarant is the initial owner of any Unit created by this Declaration.
ARTICLE 2, MAXIMUM NUMBER OF UNITS: BOUNDARIES Section 2.1. Maximum Number of Units. The Condominium upon creation contains three (3) Units. As additional Units are added, it contains the number of Units listed in the most current Exhibit B. The Declarant reserves the right to create up to a total of five (5) Units.
Section 2.2. Boundaries. Boundaries of each Unit created by this Declaration are shown on the Plats and Plans as numbered Units with their identifying number and are described as follows: a.
Upper Boundary: The horizontal or sloping plane or planes of the unfinished lower surfaces of the ceiling bearing structure surfaces, beams and rafters, extended to an intersection with the vertical perimeter boundaries.
b.
Lower Boundary: The horizontal plane or planes of the undecorated or unfinished upper surfaces of the floors extended to an intersection with the vertical perimeter boundaries and open, horizontal, unfinished surfaces of trim, sills and structural components.
-S.
Y. A ATTORNEYS AT LAW CHAPEL HILL NORTH CAROLINA C.
BOOK 2702 PAGE 306 Vertical Perimeter Boundary: The planes defined by measuring from the outside of the outside walls to the centerline of the common corridor, if any, and from the outside of the outside walls to the centerline of a demising partition.
planes defined by measuring from the outside of the outside walls to the centerline of the common corridor, if any, and from the outside of the outside walls to the centerline of a demising partition.
d. Inclusions: Each Unit will include the spaces and improvements lying within the boundaries described in subsections 2.2 a, b and c above, and will also include the spaces and improvements within such spaces containing any space heating, water heating and air conditioning apparatus, smoke detector systems and all electrical switches, wiring (to its connection with the individual meter serving a Unit), pipes (to the connectors with the main service line), ducts, conduits, smoke detector systems, telephone, and electrical receptacles and light fixtures and boxes or meters serving that Unit exclusively, the surface of the foregoing being the boundaries of such Unit, whether or not such spaces are contiguous. All doors, windows, lath, wallboard, plasterboard, plaster, paneling, tiles, wallpaper, paint and other materials constituting any part of the finished surfaces thereof, shall be a part of the Unit.
c. Exclusions: Except when specifically included by other provisions of Section 2.2, the following are excluded from each Unit: The spaces and improvements lying outside of the boundaries described in Subsections 2.2 a, b, and c above; and all chutes, pipes, flues, ducts, wires, conduits, skylights and other facilities running through or within any interior wall or partition for the purpose of furnishing utility and similar services to other Units and Common Elements or both.
f. Non-Contiguous Portions: Certain Units may include special portions, pieces or equipment such as heating and air conditioning apparatus, meter boxes, utility
ther Units and Common Elements or both.
f. Non-Contiguous Portions: Certain Units may include special portions, pieces or equipment such as heating and air conditioning apparatus, meter boxes, utility connection structures and storage portions situated in buildings or structures that are detached or semidetached from the buildings containing the principal occupied portion of the Units. Such special equipment and storage portions are a part of the Unit notwithstanding their non-contiguity with such occupied portions.
g.
Inconsistency with Plats and Plans: If this definition is inconsistent with the Plats and Plans, then this definition will control.
LEVINE & STEWART ARTICLE 3.
LIMITED COMMON ELEMENTS The following portions of the Common Elements are Limited Common Elements assigned to the Units as stated: a. If a chase, chute, flue, pipe, duct, wire, conduit, bearing wall, bearing column, or other fixture lies partially within and partially outside the designated boundaries of a Unit, the portion serving only the Unit is a Limited Common Element, allocated solely to the Unit, the use of which is limited to that Unit, and any portion thereof serving more than one Unit or a portion of the Common Elements is a part of the Common Elements.
-6LEVINE & STEW ART ATTORNEYS AT LAW CHAPEL HILL. NORTH CAROLINA b.
BOOK 2702 PAGE 307 Any exterior door or window or other fixture designed to serve a single Unit that is located outside of the boundaries of the Unit, is a Limited Common Element allocated exclusively to the Unit and its use is limited to that Unit.
c.
Stairways, landings, hallways, and entranceways, the use of which is limited to certain Units as shown on the Plats and Plans.
d.
the Plats and Plans.
e.
e Unit and its use is limited to that Unit.
c.
Stairways, landings, hallways, and entranceways, the use of which is limited to certain Units as shown on the Plats and Plans.
d.
the Plats and Plans.
e.
Utility areas, the use of which is limited to the Unit or Units as shown on Mailboxes, nameplates, and exterior lighting affixed to the building will be Limited Common Elements allocated to the Unit served.
f.
HVAC systems shall be Limited Common Elements allocated to the units served. If the HVAC serves more than one unit, the cost, maintenance and utility charges shall be borne by the respective Unit Owners in the proportionate interest as between the Unit Owners who are serviced by the HVAC system, calculated pursuant to Section 7.2 herein.
g.
Attic space directly above a Unit shall be a Limited Common Element with respect to such Unit.
ARTICLE 4.
MAINTENANCE, REPAIR AND REPLACEMENT Section 4.1. Common Elements. The Association will maintain, repair and replace all of the Common Elements, except the portions of the Limited Common Elements which are required by this Declaration to be maintained, repaired or replaced by the Unit Owners.
Section 4.2. Units. Each Unit Owner shall maintain, repair and replace, at such Unit Owner's own expense, all portions of such Unit Owner's Unit, except the portions thereof to be maintained, repaired or replaced by the Association.
Section 4.3. Limited Common Elements. Any Common Expenses associated with the maintenance, repair or replacement of heat exchanger, heat outlet, enclosures and mechanical attachments will be assessed against the Unit or Units to which the Limited Common Element is assigned.
Common Expenses associated with the maintenance, repair or replacement of
losures and mechanical attachments will be assessed against the Unit or Units to which the Limited Common Element is assigned.
Common Expenses associated with the maintenance, repair or replacement of components and elements attached to or a part of stairways, landings, hallways, and entranceways, exterior doors and windows will be assessed against the Unit or Units to which the Limited Common Element is assigned. No additional component or element may be attached without consent of the Executive Board upon approval by the covenants control committee, if any. In the event such additional component or element becomes deteriorated or unsightly or is -7མས་ -----LEVINE & STEWART ATTORNEYS AT LAW CHAPEL HILL NORTH CAROLINA 17 BOOK 2702 PAGE 308 inconsistent with conditions of installation it may be removed or repaired at the Unit Owner's expense as a Common Expense assessment under this Section, after Notice and Hearing.
If any such Limited Common Element is assigned to more than one Unit, the Common Expenses attributable to the Limited Common Elemeni will be assessed equally among the Units to which it is assigned.
Common Expenses associated with the cleaning, maintenance repair or replacement of all other Limited Common Elements will be assessed against all Units in accordance with their Allocated Interests in the Common Expenses.
Section 4.4. Access. Any Person authorized by the Executive Board shall have the right of access to all portions of the Property for the purpose of correcting any condition threatening a Unit of the Common Elements, and for the purpose of performing installations, alterations or repairs, and for the purpose of reading, repairing, replacing utility meters and related pipes
hreatening a Unit of the Common Elements, and for the purpose of performing installations, alterations or repairs, and for the purpose of reading, repairing, replacing utility meters and related pipes valves, wires and equipment, provided that such requests for entry are made in advance and that any such entry is at a time reasonably convenient to the affected Unit Owner. In case of an emergency, no such request or notice is required and such right of entry shall be immediate, whether or not the Unit Owner is present at the time.
Section 4.5. Repairs Resulting from Negligence. Each Unit Owner will reimburse the Association for any damages to any other Unit or to the Common Elements caused intentionally, negligently or by such Unit Owner's failure to properly maintain, repair or make replacements to such Unit Owner's Unit. The Association will be responsible for damage to Units caused intentionally, negligently or by its failure to maintain, repair or make replacements to the Common Elements. If such expense is caused by misconduct, it will be assessed following Notice and Hearing.
ARTICLE 5.
SUBSEQUENTLY ALLOCATED LIMITED COMMON ELEMENTS Those portions of the Common Elements now or hereafter improved as parking spaces, may be subsequently allocated as Limited Common Elements in accordance with Subsection 6.1(c) and Article 10 of this Declaration, or may be assigned by Rules and Regulations of the Executive Board, or may be limited by Rules and Regulations to visitors only.
ARTICLE 6.
DEVELOPMENT RIGHTS AND OTHER SPECIAL DECLARANT RIGHTS Section 6.1. Reservation of Development Rights The Declarant reserves the following Development Rights: a. The right by amendment, to add any or all portions of the real estate described
LARANT RIGHTS Section 6.1. Reservation of Development Rights The Declarant reserves the following Development Rights: a. The right by amendment, to add any or all portions of the real estate described in Exhibit C attached hereto ("Additional Land") to the Condominium.
-8LEVINE & STEW ART ATTORNEYS AT LAW CHAPEL HILL. NORTH CAROLINA BOOK 2702 PAGE 309 b. The right by amendment, to add and create Units, Common Elements, and Limited Common Elements within the Condominium, including the Additional Land.
c. The right by amendment, to allocate as Limited Common Elements parking spaces per net usable square feet per unit as shown on the Plats and Plans and assign them to particular Units. No assurance is given that such spaces will be allocated however.
d. The right to construct underground utility lines, pipes, wires, ducts, conduits and other facilities across the land anywhere in the Condominium for the purpose of furnishing utility and other services to buildings and Improvements to be constructed on the Additional Land. The Declarant also reserves the right to grant easements to public utility companies and to convey improvements within those easements anywhere in the Condominium for the above-mentioned purposes. If the Declarant grants any such easements, Exhibit A will be amended to include reference to the recorded easement.
C.
The right to withdraw unimproved real estate from the condominium.
Section 6.2 Limitations on Development Rights. The Development Rights reserved in Section 6.1 are limited as follows: a.
The Development Rights may be exercised at any time but not more than twenty-five (25) years after the recording of the initial Declaration; b.
Development Rights; c.
Not more than ten (10) additional units may be created under the
xercised at any time but not more than twenty-five (25) years after the recording of the initial Declaration; b.
Development Rights; c.
Not more than ten (10) additional units may be created under the All Units and Common Elements created pursuant to the Development Rights will be restricted to medical/professional/office uses and such other uses as are incidental to the to the maintenance of medical/professional/offices. The Units created pursuant to the Development Rights may be inconsistent with the Units created under this Declaration as initially recorded.
Section 6.3. Phasing or Development Rights. No assurances are made by the Declarant regarding the addition or creation of additional Units, Common Elements, or Limited Common Elements within the Condominium. No assurances are made by the Declarant regarding the Additional Land as to the portions of the Additional Land in which the Declarant will exercise its Development Rights or the order in which such portions, or all of the Additional Land, will be added. The exercise of Development Rights as to some portions will not obligate the Declarant to exercise them as to other portions.
-9. P LEVINE & STEWART ATTORNEYS AT LAW CHAPEL HILL, NORTH CAROLINA BOOK 2702 PAGE 310 Section 6.4. Special Declarant Rights. The Declarant reserves the following Special Declarant Rights, to the maximum extent permitted by law, which may be exercised, where applicable, anywhere within the Condominium: To complete improvements indicated on the Plats and Plans filed with the a.
Declaration; b.
To exercise a Development Right reserved in the Declaration; C.
To maintain sales offices, management offices, signs advertising the Condominium, and models; d.
To use easements through the Common Elements for the purpose of
t Right reserved in the Declaration; C.
To maintain sales offices, management offices, signs advertising the Condominium, and models; d.
To use easements through the Common Elements for the purpose of making improvements within the Condominium; e.
To appoint or remove an officer of the Association or an Executive Board member during the Declarant Control Period subject to the provisions of Section 6.9 of this Declaration.
Section 6.5. Models, Sales Offices and Management Offices. As long as the Declarant is a Unit Owner, the Declarant and its duly authorized agents, representatives and employees may maintain any Unit owned by the Declarant or any portion of the Common Elements as a model unit or sales office or management office.
Section 6.6.
Construction: Declarant's Easements. The Declarant reserves the right to perform repairs and construction work, and to store materials in secure areas, in Units and Common Elements, and the further right to control all such work and repairs, and the right of access thereto, until its completion. All work may be performed by the Declarant without the consent or approval of the Executive Board. The Declarant has such an easement through the Common Elements as may be reasonably necessary for the purpose of discharging the Declarant's obligations for exercising special Declarant rights, whether arising under the Condominium Act or reserved in the Declaration. Such easement includes the right to convey utility and drainage easements to public utilities, municipalities, the State of North Carolina, riparian owners or upland owners to fulfill the plan of development.
Section 6.7. Signs and Marketing. The Declarant reserves the right to post signs and displays in the Common Elements to promote sales of Units, and to conduct general sales
ll the plan of development.
Section 6.7. Signs and Marketing. The Declarant reserves the right to post signs and displays in the Common Elements to promote sales of Units, and to conduct general sales activities, in a manner as will not unreasonably disturb the rights of Unit Owners.
Section 6.8. Declarant's Personal Property. The Declarant reserves the right to retain all personal property and equipment used in the sales, management, construction and maintenance of the premises that has not been represented as Property of the Association. The Declarant reserves the right to remove from the Property, any and all of the goods and improvements used in development, marketing and construction, whether or not they have become fixtures.
-10LEVINE & STEWART ATTORNEYS AT LAW CHAPEL HILL NORTH CAROLINA BOOK 2702 PAGE 311 Section 6.9. Declarant Control of the Association.
a.
Subject to subsection 6.9(b), during the Declarant Control Period, a Declarant or persons designated by the Declarant may appoint and remove the officers and members of the Executive Board. Declarant may voluntarily surrender the right to appoint and remove officers and members of the Executive Board before the termination of the Declarant Control Period, but in that event the Declarant may require, for the duration of the Declarant Control Period, that specified actions of the Association or Executive Board, as described in a recorded instrument executed by the Declarant, be approved by the Declarant before they become effective.
b.
Not later than the termination of the Declarant Control Period, the Unit Owners shall elect an Executive Board of at least three (3) members, at least a majority of whom shall be Unit Owners. The Executive Board shall elect the officers. The Executive Board
eriod, the Unit Owners shall elect an Executive Board of at least three (3) members, at least a majority of whom shall be Unit Owners. The Executive Board shall elect the officers. The Executive Board members and officers shall take office upon election.
c.
Notwithstanding any provision of this Declaration or the Bylaws to the contrary, following notice under Section 47C-3-108 of the Condominium Act, the Unit Owners, by a sixty-seven percent (67%) vote of all persons present and entitled to vote at a meeting of the Unit Owners at which a quorum is present, may remove a member of the Executive Board with or without cause, other than a member appointed by the Declarant.
Section 6.10. Limitations on Special Declarant Rights. Unless sooner terminated by an amendment to the Declaration executed by the Declarant, any Special Declarant Right may be exercised by the Declarant until the earlier of the following: a. So long as the Declarant holds a Development Right to create additional Units or Common Elements or to add real estate to the Condominium; or b.
seven (7) years after recording this Declaration.
Section 6.11. Interference with Special Declarant Rights. Neither the Association nor the Unit Owner may take any action or adopt any rule that will interfere with or diminish any Special Declarant Right without the prior written consent of the Declarant.
ARTICLE 7.
ALLOCATED INTERESTS Section 7.1. Allocation of Interests. The table showing Unit numbers and their Allocated These interests have been allocated in accordance with the These formulas are to be used in reallocating interests if Units Interests is attached as Exhibit B.
formulas set out in this Article 7.
are added to the Condominium.
-111 BOOK 2702 PAGE 312
ith the These formulas are to be used in reallocating interests if Units Interests is attached as Exhibit B.
formulas set out in this Article 7.
are added to the Condominium.
-111 BOOK 2702 PAGE 312 Section 7.2. Formulas for the Allocation of Interests. The interests allocated to each Unit have been calculated on the following formulas: a. Undivided Interest in the Common Elements: The percentage of the undivided interest in the Common Elements allocated to each Unit is based on the relative floor area of each Unit as compared to the floor area of all of the Units in the Condominium.
b.
Liability for the Common Expenses: The percentage of liability for Common Expenses allocated to each Unit is based on the relative floor area of each Unit as compared to the floor area of all of the Units in the Condominium. Nothing contained in this Subsection shall prohibit certain Common Expenses from being apportioned to particular Units under Article 16 of this Declaration.
c.
Votes: The vote in the Association allocated to each Unit is based on the relative floor area of each Unit as compared to the floor area of all of the Units in the Condominium. Any specified percentage portion or fraction of Unit Owners, unless otherwise stated in the Condominium Documents, means the specified percentage, portion, or fraction of all the votes as allocated in Exhibit B.
Section 7.3. Assignment of Allocated Interests Upon Creation of Units Pursuant to Exercise of Development Rights. The effective date for assigning Allocated Interests to Units created pursuant to Section 6.1 of this Declaration shall be the date on which the amendment creating the Units is recorded in the Office of the Register of Deeds of Durham County, North Carolina.
LEVINE & STEWART ATTORNEYS AT LAW
1 of this Declaration shall be the date on which the amendment creating the Units is recorded in the Office of the Register of Deeds of Durham County, North Carolina.
LEVINE & STEWART ATTORNEYS AT LAW CHAPEL HILL NORTH CAROLINA ARTICLE 8.
RESTRICTIONS ON USE. ALIENATION AND OCCUPANCY Section 8.1. Use and Occupancy Restrictions. Subject to the Special Declarant Rights reserved under Article 6, the following use restrictions apply to all Units and to the Common Elements: a.
Each Unit is restricted to medical/professional/office uses and such other uses as are identical to the maintenance of medical/professional/offices.
b. The use of Units and Common Elements is subject to the Bylaws and the Rules and Regulations of the Association.
Section 8.2. Restrictions on Alienation. All leases and rental agreements shall be in writing and subject to the requirements of the Condominium Documents and the Association.
All leases of a Unit shall be deemed to include a provision that the tenant will recognize and attorn to the Association a landlord, solely for the purpose of having the power to enforce a -12LEVINE & STEWART ATTORNEYS AT LAW CHAPEL HILL. NORTH CAROLINA BGOK 2702 PAGE 313 violation of the provisions of the Condominium Documents against the tenant, provided the Association gives the landlord notice of its intent to so enforce, and a reasonable opportunity to cure the violation directly, prior to the commencement of an enforcement action .
ARTICLE 9.
EASEMENT'S AND LICENSES All easements or licenses to which the Condominium is presently subject are recited in Exhibit A to this Declaration. In addition, the Condominium may be subject to other easements or licenses granted by the Declarant pursuant to its powers under Article 6 of this Declaration.
ARTICLE 10.
hibit A to this Declaration. In addition, the Condominium may be subject to other easements or licenses granted by the Declarant pursuant to its powers under Article 6 of this Declaration.
ARTICLE 10.
ALLOCATION AND REALLOCATION OF LIMITED COMMON ELEMENTS A Common Element not previously allocated as a Limited Common Element may be so allocated only pursuant to provisions of Article 5 of the Declaration. The allocations will be made by amendments to the Declaration, specifying to which Unit or Units the Limited Common Element is allocated.
The Declarant has reserved the right, under Subsection 6.!(c) of this Declaration, to allocate as Limited Common Elements parking spaces per usable square feet or per unit. If any such parking spaces are so allocated, they shall be assigned to particular Units by amendment to this Declaration. Any parking spaces which are not allocated as Limited Common Elements at the termination of the Development Rights period may be so allocated by the Association by amendment to this Declaration. All amendments shall specify to which Unit or Units the Limited Common Element is allocated.
No limited Common Element depicted on the Plats and Plans may be reallocated by an amendment to this Declaration pursuant to this Article 10 except as part of a relocation of boundaries of Units pursuant to Article 12 of this Declaration. Such amendment shall require the approval of all holders of Security Interests in the affected Units, which approval shall be copy thereof endorsed thereon. The Person executing the amendment shall provide an executed to the Association which, if the amendment complies with the provisions of this Declaration and the Condominium Act, shall record it. The amendment shall contain words of conveyance and
de an executed to the Association which, if the amendment complies with the provisions of this Declaration and the Condominium Act, shall record it. The amendment shall contain words of conveyance and must be recorded and indexed in the names of the parties and the Condominium. The parties executing the amendment shall be responsible for the preparation of the amendment and shall reimburse the Association for its reasonable attorneys' fees in connection with the review of the amendment and for the recording costs.
-13LEVINE & STEWART ATTORNEYS AT LAW CHAPEL HILL, NORTH CAROLINA BOOK 2702 PAGE 314 ARTICLE 11.
ADDITIONS. ALTERATIONS AND IMPROVEMENTS Section 11.1. Additions, Alterations and Improvements by Unit Owners.
a. No Unit Owner will make any structural addition, structural alteration, or structural improvement in or to the Condominium without the prior written consent thereto of the Executive Board in accordance with Subsection 11.1c.
b.
Subject to Subsection 11.1a, a Unit Owner: (i) may make any other improvements or alterations to the interior of such Unit Owner's Unit that do not impair the structural integrity or mechanical systems or lessen the support of any portion of the Condominium, except to the extent such Improvement or alteration changes the exterior appearance of the Unit; (ii) may not change the appearance of the Common Elements, or the exterior appearance of a Unit or any other portion of the Condominium without permission of the Association; (iii) after acquiring an adjoining Unit or an adjoining part of an adjoining Unit, may remove or alter any intervening partition or create apertures therein, even if the partition in whole or in part is a Common Element, if those acts do not impair the structural
an adjoining Unit, may remove or alter any intervening partition or create apertures therein, even if the partition in whole or in part is a Common Element, if those acts do not impair the structural integrity or mechanical systems or lessen the support of any portion of the Condominium.
Removal of partitions or creation of apertures under this Subsection is not an alteration of boundaries.
c. A Unit Owner may submit a written request to the Executive Board for approval to do anything that such Unit Owner is forbidden to do under Subsection 11.1a or 11.1b(ii). The Executive Board shall answer any written request for such approval, after Notice and Hearing, within sixty (60) days after the request thereof. Failure to do so within such time shall not constitute a consent by the Executive Board to the proposed action. The Executive Board shall review requests in accordance with the provisions of its Rules and Regulations.
d.
Any applications to any department or to any governmental authority for a permit to make any addition, alteration or improvement in or to any Unit shall be executed by the Association only. Such execution will not, however, create any liability on the part of the Association or any of its members to any contractor, subcontractor or materialman on account of such addition, alteration or improvement or tq any person having any claim for injury to persons or damage to property arising therefrom.
-141 LEVINE & STEW ART ATTORNEYS AT LAW CHAPEL HILL, NORTH CAROLINA c.
BOOK 2702 PAGE 315 All additions, alterations and improvements to the Units and Common Elements shall not, except pursuant to prior approval by the Executive Board, cause any increase in the premium of any insurance policies carried by the Association or by the owners of any
and Common Elements shall not, except pursuant to prior approval by the Executive Board, cause any increase in the premium of any insurance policies carried by the Association or by the owners of any Units other than those affected by such chance.
f. The Declarant specifically reserves the right of approval over any improvements or alterations that alter the exterior appearance of the Condominium including, without limitation, interior window treatments, which shall conform to standards regarding size, color and orientation to be determined in the discretion of the Declarant. Furthermore, the Declarant specifically reserves the right of approval over all nameplates and signage attached to the exterior of the Condominium.
The provisions of this Section shall not apply to the Declarant in the exercise of any Special Declarant Right.
Section 11.2. Additions. Alterations and Improvements by Executive Board. Subject to the limitations of Sections 16.4 and 16.5 of this Declaration, the Executive Board may make any additions, alterations or improvements to the Common Elements which, in its judgment, it deems necessary.
ARTICLE 12, RELOCATION OF BOUNDARIES BETWEEN ADJOINING UNITS Section 12.1. Application and Amendment. Subject to approval of any structural changes and required permits pursuant to Article 11, the boundaries between adjoining Units may be relocated by an amendment to the Declaration upon application to the Association by the owners of the Units affected by the relocation. If the owners of the adjoining Units haye specified a reallocation between their Units of their Allocated Interests, the application shall state the proposed reallocations. Unless the Executive Board determines, within thirty (30) days after
specified a reallocation between their Units of their Allocated Interests, the application shall state the proposed reallocations. Unless the Executive Board determines, within thirty (30) days after receipt of the application, that the reallocations are unreasonable, the Association shall consent to the reallocation and prepare an amendment that identifies the Units involved, states the reallocations and indicates the Association's consent. The amendment must be executed by those Unit Owners and contain words of conveyance between them, and the approval of all holders of Security Interests in the affected Units shall be endorsed thereon. On recordation, the amendment shall be indexed in the name of the grantor and the grantee, and in the grantee's index in the name of the Association.
Section 12.2. Recording Amendments. The Association shall prepare and record plats or plans necessary, to show the altered boundaries between adjoining Units, and their dimensions and identifying numbers.
The applicants will pay for the costs of preparation of the amendment and its recording, and the reasonable consultant fees of the Association if it is deemed necessary to employ a consultant by the Executive Board.
-151 LEVINE & STEWART ATTORNEYS AT LAW CHAPEL HILL NORTH CAROLINA BOOK 2702 PAGE 316 ARTICLE 13.
AMENDMENTS TO DECLARATION Section 13.1. General. Except in cases of amendments that may be executed by the Declarant in the exercise of its Development Rights or by the Association under Article 10 of this Declaration and Section 47C-1-107 of the Condominium Act, or by certain Unit Owners under Article 10 and Section 12.1 of this Declaration and Section 47C-2-118 of the Condominium Act, and except as limited by Section 13.4 of this Declaration, this Declaration, including the
it Owners under Article 10 and Section 12.1 of this Declaration and Section 47C-2-118 of the Condominium Act, and except as limited by Section 13.4 of this Declaration, this Declaration, including the Plats and Plans, may be amended only by vote or agreement of Unit Owners of Units to which at least sixty-seven percent (67%) of the votes in the Association are-allocated.
Section 13.2. Limitation of Actions. An action to challenge the validity of an amendment adopted by the Association pursuant to this Article may not be brought more than one year after the amendment is recorded.
Section 13.3. Recording Required. Each amendment to the Declaration must be recorded in every county in which a portion of the Condominium is located and the amendment is effective only upon recording. An amendment, except an, amendment pursuant to Article 12 of this Declaration, must be indexed in the grantee's index in the name of the Condominium and the Association and in the grantor's index in the name of the parties executing the amendment.
Section 13.4. Unanimous Consent Required. Except to the extent expressly permitted or required by other provisions of the Condominium Act, an amendment may not create or increase Special Declarant Rights, increase the number of Units, change the boundaries of a Unit, the Allocated Interests of a Unit, or the uses to which a Unit is restricted, in the absence of the unanimous consent of the Unit Owners.
Section 13.5. Execution of Amendments. An amendment to the Declaration required by the Condominium Act to be recorded by the Association, which has been adopted in accordance with this Declaration and the Condominium Act, must be prepared, executed, recorded and
laration required by the Condominium Act to be recorded by the Association, which has been adopted in accordance with this Declaration and the Condominium Act, must be prepared, executed, recorded and certified on behalf of the Association by an officer of the Association designated for that purpose, or in the absence of designation, by the president of the Association.
Section 13.6. Special Declarant Rights. Provisions in this Declaration creating Special Declarant Rights may not be amended without the consent of the Declarant.
Section 13.7. Consent of Holders of Security Interests. Amendments are subject to the consent requirements of Article 16 of this Declaration.
Section 13.8. Amendments to Create Units or Add Real Estate. To exercise any Development Rights reserved under Section 6.1 of this Declaration, the Declarant shall prepare, execute and record an amendment to the Declaration. The Declarant shall also record either new -16LEVINE & STEWART ATTORNEYS AT LAW CHAPEL HILL NORTH CAROLINA BOOK 2702 PAGE 317 Plats and Plans necessary to conform to the requirements of Section 47C2-109(a), (b), and (c) of the Condominium Act or new certifications of the Plats and Plans previously recorded if those Plats and Plans otherwise conform to the requirements of those Sections.
The amendment to the Declaration shall assign an identifying number to each new Unit created and reallocate the Allocated Interests among all Units. The amendment shall describe any Common Elements and any Limited Common Elements created thereby and designate the Unit to which each Limited Common Element is allocated to the extent required by Section 47C-2-108 of the Condominium Act.
ARTICLE 14, AMENDMENTS TO BYLAWS The Bylaws may be amended only by a vote of two-thirds (2/3) of the members of the
ent is allocated to the extent required by Section 47C-2-108 of the Condominium Act.
ARTICLE 14, AMENDMENTS TO BYLAWS The Bylaws may be amended only by a vote of two-thirds (2/3) of the members of the Executive Board at any meeting duly called for such purpose.
ARTICLE 15.
TERMINATION Termination of the Condominium may be accomplished only in accordance with Section 47C-2-11B of the Condominium Act.
ARTICLE 16.
ASSESSMENT AND COLLECTION OF COMMON EXPENSES Section 16.1. Apportionment of Common Expenses.
a.
Except as provided in Section 16.2, all Common Expenses shall be assessed against all Units in accordance with their percentage interest in the Common Expenses as shown on Exhibit B to this Declaration.
b.
Water shall be a Common Expense for all Units that are not separately metered for water. Should the Executive Board or Declarant determine that a particular Unit is a high-volume user of water, the Board or Declarant may require that Unit to be separately metered for water. Any Unit separately metered for water shall not be liable for assessment of a Common Expense for water.
Section 16.2. Common Expenses Attributable to Fewer Than All Units.
a.
Any Common Expense associated with the maintenance, repair or replacement of a Limited Common Element shall be assessed against the Unit or Units to which the Limited Common Element is assigned; if any such Limited Common Element is assigned to more than one Unit, the Common Expenses attributable to the Limited Common Element shall be assessed equally among the Units to which it is assigned.
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b.
BOOK 2702 PAGE 318 Any Common Expense for services provided by the Association to an individual Unit at the request of the Unit Owner shall be assessed against the Unit which benefits from service.
b.
BOOK 2702 PAGE 318 Any Common Expense for services provided by the Association to an individual Unit at the request of the Unit Owner shall be assessed against the Unit which benefits from service.
c. Any insurance premium increase attributable to a particular Unit by virtue of activities in or construction of the Unit shall be assessed against that Unit.
d.
An assessment to pay a judgment against the Association may be made, only against the Units in the Condominium at the time the judgment was entered, in proportion to” their Common Expense liabilities.
e. If Common Expense is caused by the misconduct of a Unit Owner, the Association may assess that expense exclusively against the Unit.
f. Fees, charges, late charges, fines, collection costs, and interest charged against a Unit Owner pursuant to the Condominium Documents and the Condominium Act are enforceable as Common Expense assessments.
g. Any charge for a utility service, including water, provided solely to a particular Unit or Units shall be assessed against that Unit or Units.
Section 16.3. Lien.
a. The Association has a lien on a Unit for an assessment levied against the Unit which remains unpaid for a period of thirty (30) days or longer from the time it is filed of record in the Office of the Clerk of Superior Court of Durham County, North Carolina. Fees, charges, late charges, fines and interest charged pursuant to the Condominium Act and the Condominium Dqcuments are enforceable as assessments under this Section. If an assessment is payable in installments, the full amount of the assessment becomes immediately due and payable when the first installment thereof remains unpaid in such manner, and the full amount of the assessment shall constitute a lien from the time of such filing, except:
ecomes immediately due and payable when the first installment thereof remains unpaid in such manner, and the full amount of the assessment shall constitute a lien from the time of such filing, except: b. A lien under this section is prior to all other liens and encumbrances on a Unit (i) liens and encumbrances (including, but not limited to, a mortgage or deed of trust on the Unit) recorded before the docketing of the lien in the Office of the Clerk of Superior Court; and (ii) liens for real estate taxes and other governmental assessments or charges against the Unit. This Subsection does not affect the priority of mechanics' or materialmen's liens.
LEVINE & STEWART ATTORNEYS AT LAW CHAPEL HILL, NORTH CAROLINA ----18☐ LEVINE & STEWART ATTORNEYS AT LAW CHAPEL HILL. NORTH CAROLINA BOOK 2702 PAGE 319 c. A lien for unpaid assessments is extinguished unless proceedings to enforce the lien are instituted within three (3) years after the docketing thereof in the Office of the Clerk of Superior Court.
d. This section does not prohibit an action to recover sums for which Subsection 16.3(a) of this section creates a dien or prohibit the Association from taking a deed in lieu of foreclosure.
e. A judgment, decree or order in any action brought under this Section shall include costs and reasonable attorneys' fees for the prevailing party.
f. The Association's lien may be foreclosed as a mortgage on real estate under power of sale under Article 2A of Chapter 45 of the General Statutes of North Carolina.
g. If a holder of a first mortgage or first deed of trust of record, or other purchaser of a Unit, obtains title to the Unit as a result of foreclosure of a first mortgage or first deed of trust, such purchasers, and its heirs, successors and assigns, shall not be liable for the
urchaser of a Unit, obtains title to the Unit as a result of foreclosure of a first mortgage or first deed of trust, such purchasers, and its heirs, successors and assigns, shall not be liable for the assessments against such Unit which became due prior to acquisition of title to such Unit by such purchaser. Such unpaid assessments shall be deemed to be Common Expenses collectible from all the Unit Owners including such purchaser, and its heirs, successors and assigns.
h. Any payments received by the Association in the discharge of a Unit Owner's obligation may be applied to the oldest balance due.
Section 16.4. Budget Adoption and Ratification. Within thirty (30) days after adoption of a proposed budget for the Condominium, the Executive Board shall provide a summary of the budget to each Unit Owner, and shall set a date for a meeting of the Unit Owners to consider ratification of the budget not less than fourteen (14) nor more than thirty (30) days after mailing of the summary. Unless, at that meeting, eighty percent (80%) of all Unit Owners reject the budget, the budget is ratified, whether or not a quorum is present. If the proposed budget is rejected, the periodic budget last ratified by the Unit Owners continues until the Unit Owners ratify a budget proposed by the Executive Board.
Section 16.5. Ratification of Non-Budgeted Common Expense Assessments. If the Executive Board votes to levy a Common Expense assessment not included in the current budget, other than one enumerated in Section 16.2 of this Declaration, in an amount greater than fifteen (15) percent of the current annual operating budget, the Executive Board shall submit such Common Expense to the Unit Owners for ratification in the same manner as a budget under Section 16.4 ༣ཡ མྨ -19LEVINE & STEWART
current annual operating budget, the Executive Board shall submit such Common Expense to the Unit Owners for ratification in the same manner as a budget under Section 16.4 ༣ཡ མྨ -19LEVINE & STEWART ATTORNEYS AT LAW CHAPEL HILL, NORTH CAROLINA BOOK 2702 PAGE 320 Section 16.6. Certificate of Payment of Common Expense Assessments. The Association, upon written request, shall furnish to a Unit Owner a statement setting out the amount of unpaid assessments against the Unit. The statement must be furnished within ten (10) business days after receipt of the request and is binding on the Association, the Executive Board and each Unit Owner.
Section 16.7. Monthly Payment of Common Expenses. All Common Expenses assessed under Sections 16.1 and 16.2 shall be due and payable monthly.
Section 16.8. Acceleration of Common Expense Assessments. In the event of default for a period of thirty (30) days by any Unit Owner in the payment of any Common Expense assessment levied against such Unit Owner's Unit, the Executive Board shall have the right, after Notice and hearing, to declare all unpaid assessments for the pertinent fiscal year to be immediately due and payable.
Section 16.9. Commencement of Common Expense Assessments. Common Expense assessments shall begin on the first day of the month on which conveyance of the first Unit to a Unit Owner other than the Declarant occurs or on such earlier date as the Executive Board determines.
: Section 16.10. No Waiver of Liability for Common Exoenses. No Unit Owner may obtain exemption from liability for payment of the Common Expenses by waiver of the use of enjoyment of, the Common Elements or by abandonment of the Unit against which the assessments are made.
r may obtain exemption from liability for payment of the Common Expenses by waiver of the use of enjoyment of, the Common Elements or by abandonment of the Unit against which the assessments are made.
Section 16.11. Personal Liability of Unit Owners. The owner of a Unit at the time a Common Expense assessment or portion thereof is due and payable is personally liable for the assessment. Personal liability for the assessment shall not pass to a successor in title to the Unit unless such successor in title agrees to assume the obligation.
ARTICLE 17.
RIGHT TO ASSIGN FUTURE INCOME The Association may assign its future income, including its right to receive Common Expense assessments, only by the affirmative vote of Unit Owners of Units to which at least fifty-one percent (51%) of the votes in the Association are allocated, at a meeting called for that purpose.
ARTICLE 18.
PERSONS AND UNITS SUBJECT TO THE CONDOMINIUM DOCUMENT Section 18.1. Compliance with Condominium Documents. All Unit Owners, tenants, mortgagees and occupants of Units shall comply with the Condominium Documents. The acceptance of a deed or the exercise of any incident of ownership or the entering into of a lease or -20LEVINE & STEWART ATTORNEYS AT LAW CHAPEL HILL NORTH CAROLINA i BOOK 2702 PAGE 321 the entering into occupancy of a Unit constitutes agreement that the provisions of the Condominium Documents are accepted and ratified by such Unit Owner, tenant, mortgagee or occupant, and all such provisions recorded in the Office of the Register of Deeds of Durham County, North Carolina are covenants running with the land and shall bind any persons having, at any time any interest or estate in such Unit.
Section 18.2. Adoption of Rules and Regulations. The Executive Board may adopt
a are covenants running with the land and shall bind any persons having, at any time any interest or estate in such Unit.
Section 18.2. Adoption of Rules and Regulations. The Executive Board may adopt Rules and Regulations regarding the use and occupancy of Units affecting the Common Elements. Limited Common Elements and the activities of occupants, subject to Notice and Consent.
ARTICLE 19.
INSURANCE Section 19.1. Coverage. To the extent reasonably available, the Executive Board shall obtain and maintain insurance coverage as set forth in this Article. If such insurance is not reasonably available, and the Executive Board determines that any insurance described herein will not be maintained, the Executive Board shall cause notice of that fact to be hand-delivered or sent prepaid by United States mail to all Unit Owners at their last known addresses.
Section 19.2. Property Insurance.
a. Property insurance covering: (i) the Common Elements, all structural portions of the Condominium and all HVAC, electrical and plumbing facilities, including all portions of the Condominium extending outward from the unfinished interior surface of the sheetrock outward to the outside surface of the floor covering to the foundation, but excluding improvements and betterments installed by Unit Owners and further excluding land, excavations, portions of foundations below the under surfaces of the lowiest floors, underground pilings, pipes, flues and drains and other items normally excluded from property policies; and (ii) all personal property owned by the Association.
b. Amount. An amount (after application of any deductions) equal to eighty percent (80%) of replacement cost at the time the insurance is purchased and at each renewal
operty owned by the Association.
b. Amount. An amount (after application of any deductions) equal to eighty percent (80%) of replacement cost at the time the insurance is purchased and at each renewal date. The Executive Board is authorized to obtain appraisals periodically for the purpose of establishing said replacement cost, and the cost of such appraisals shall be a Cominon Expense.
c. Risks Insured Against. The insurance shall afford protection against "all risks" of direct physical loss commonly insured against.
d. Other Provisions. Insurance policies required by this Section shall provide that: -21...
GTA 1 1 i LEVINE & STEWART ATTORNEYS AT LAW CHAPEL HILL, NORTH CAROLINA Unit Owner; BOOK 2702 PAGE 322 (i) the insurer waives the right to subrogation under the policy against a (ii) an act or omission by a Unit Owner, unless acting within the scope of the Unit Owner's authority on behalf of the Association, will not void the policy or be a condition to recovery under the policy; (iii) if, at the time of a loss under the policy, there is other insurance in the name of a Unit Owner covering the same risk covered by the policy, the policy of the Association provides primary insurance; (iv) loss must be adjusted with the Association; (v) insurance proceeds shall be paid to an insurance trustee designated in the policy for that purpose, and in the absence of such designation to the Association, in either case to be held in trust for each Unit Owner and such Unit Owner's mortgagee; (vi) the insurer may not cancel or refuse to renew the policy until thirty (30) days after notice of the proposed cancellation or non-renewal has been mailed to the Association each Unit Owner and each holder of a Security Interest to whom a certificate or
olicy until thirty (30) days after notice of the proposed cancellation or non-renewal has been mailed to the Association each Unit Owner and each holder of a Security Interest to whom a certificate or memorandum of insurance has been issued, at their respective last known addresses; and (vii) the name of the insured shall be substantially as follows: "The Hershey Building Owners Association, Inc. for the use and benefit of the individual owners."
Section 19.3. Liability Insurance. Liability insurance, including medical payment insurance, in an amount determined by the Executive Board but in no event less than $1,000,000.00 covering all occurrences commonly insured against for death, bodily injury and property damage arising out of or in connection with the use, ownership or maintenance of the Common Elements, and the activities of the Association.
provide that: a. Other Provisions. Insurance policies carried pursuant to this section shall (i) each Unit Owner is an insured person under the policy with respect to liability arising out of interest of the Unit Owner in the Common Elements or membership in the Association; Unit Owner; (ii) the insurer waives the right to subrogation under the policy against a (iii) an act or omission by a Unit Owmer, unless acting within the scope of the Unit Owner's authority on behalf of the Association, will not void the policy or be a condition to recovery under the policy; -22LEVINE & STEWART ATTORNEYS AT LAW CHAPEL HILL NORTH CAROLINA BOOK 2702 PAGE 323 (iv) if, at the time of a loss under the policy, there is other insurance in the name of a Unit Owner covering the same risk covered by the policy, the policy of the Association provides primary insurance; and (v) the insurer issuing the policy may not cancel or refuse to renew it
name of a Unit Owner covering the same risk covered by the policy, the policy of the Association provides primary insurance; and (v) the insurer issuing the policy may not cancel or refuse to renew it until thirty (30) days after norbice of the proposed cancellation or non-renewal has been mailed to the Association, each Unit Owner and each holder of a Security Interest to whom a certificate or memorandum of insurance has been issued at their last known addresses.
Section 19.4. Fidelity Bonds. A blanket fidelity bond may be provided for anyone who either handles or is responsible for funds held or administered by the Association, whether or not they receive compensation for their services.
Section 19.5. Unit Owner Policies. Each Unit Owner shall obtain insurance coverage, at such Unit Owner's own expense, upon such Unit Owner's personal property and, in addition.
shall obtain comprehensive personal liability insurance covering liability for damage to persons or property of others located within such Unit Owner's Unit, or in another Unit; or upon the Common Elements, resulting from the negligence of the insured Unit Owner, in such amounts as shall from time to time be determined by thpe Executive Board, but in no event less than $100,000.00 in respect to damages to property and $1,000,000.00 in respect to personal injury for each occurrence. Provided, no Unit Owner shall acquire or maintain insurance coverage so as to decrease the amount which the Association may realize under any insurance policy, or to cause any insurance coverage in favor of the Association to be brought into contribution with insurance coverage obtained by a Unit Owner. All policies obtained by Unit Owners individually shall contain waivers of subrogation.
ge in favor of the Association to be brought into contribution with insurance coverage obtained by a Unit Owner. All policies obtained by Unit Owners individually shall contain waivers of subrogation.
Section 19.6. Workers' Compensation Insurance. The Executive Board shall obtain and maintain workers' compensation insurance to meet the requirements of the laws of the State of North Carolina.
Section 19.7. Directors' and Officers' Liability Insurance. The Executive Board shall obtain and maintain directors' and officers' liability insurance, if available, covering all of the Directors and officers of the Association in such limits as the Executive Board may, from time to time, determine.
Section 19.8. Other Insurance. The Association may carry other insurance which the Executive Board considers appropriate to protect the Association or the Unit Owners.
Section 19.9. Premiums. Insurance premiums (excluding premiums for Unit Owner policies) shall be a Common Expense.
-23+ LEVINE & STEWART ATTORNEYS AT LAW CHAPEL HILL, NORTH CAROLINA BOOK 2702 PAGE 324 ARTICLE 20.
DAMAGE TO OR DESTRUCTION OF PROPERTY Section 20.1. Duty to Restore. A portion of the Condominium for which insurance is required under Section 19.2 hereof or for insurance carried by the Association is in effect, whichever is more extensive, that is damaged or destroyed must be repaired or replaced promptly by the Association unless: a. the Condominium is terminated; b. repair or replacement would be illegal under a state statute or municipal ordinance governing health or safety; or c. eighty percent (80%) of the Unit Owners, including each owner of a Unit or assigned Limited Common Element that will not be rebuilt, vote not to rebuild.
al ordinance governing health or safety; or c. eighty percent (80%) of the Unit Owners, including each owner of a Unit or assigned Limited Common Element that will not be rebuilt, vote not to rebuild.
Section 20.2. Cost. The cost of repair or replacement in excess of insurance proceeds and reserves is a Common Expense.
Section 20.3. Plans. The Property must be repaired and restored in accordance with either the original plans and specifications or other plans and specifications which have been approved by the Executive Board and a majority of Unit Owners.
Section 20.4. Replacement of Less than Entire Property.
a. The insurance proceeds attributable to the damaged Common Elements and other portions of the Condominium shall be used to restore the damaged area to a condition compatible with the remainder of the Condominium.
b. Except to the extent that other persons will be distributees: (i) the insurance proceeds attributable to a Unit and Limited Common Elements that is not rebuilt must be distributed to the owner of the Unit and the owner of the Unit to which the Limited Common Elements were allocated, or to lienholders, as their interests may appear; and (ii) the remainder of the proceeds must be distributed to each Unit Owner or lienholder, as their interests may appear, in proportion to the Common Element interests of all the Units.
c. If the Unit Owners vote not to rebuild a Unit, the allocated interests of the Unit are reallocated upon the vote as if the Unit had been condemned under Section 47C-1-107(a) of the Condominium Act; and the Association promptly shall prepare, execute and record an amendment to the Declaration reflecting the reallocations.
-24: LEVINE & STEWART ATTORNEYS AT LAW CHAPEL HILL, NORTH CAROLINA BOOK 2702 PAGE 325
ciation promptly shall prepare, execute and record an amendment to the Declaration reflecting the reallocations.
-24: LEVINE & STEWART ATTORNEYS AT LAW CHAPEL HILL, NORTH CAROLINA BOOK 2702 PAGE 325 Section 20.5. Insurance Proceeds. The Trustee, or if there is no Trustee, then the Executive Board of the Association, acting by the President, shall hold any insurance proceeds in trust for the Association, Unit Owners and lienholders as their interests may appear.
Subject to the provisions of Subsection 20.11(a) through Subsection 20.1(c), the proceeds shall be disbursed first for the repair or restoration of the damaged property, and the Association , Unit Owners and lienholders are not entitled to receive payment of any portion of the proceeds unless there is a surplus of proceeds after the property has been completely repaired or restored, or the Condominium is terminated.
Section 20.6. Certificates by the Executive Board. The Trustee, if any, may rely on the following certifications in writing made by the Executive. Board: and a. Whether or not damaged or destroyed property is to be repaired or restored; b. The amount or amounts to be paid for repairs or restoration and the names and addresses of the parties to whom such amounts are to be paid.
ARTICLĘ 21.
RIGHT TO NOTICE AND HEARING Section 21.1. Right to Notice and Hearing. Whenever the Condominium Documents require that an action be taken after "Notice and Hearing", the following procedures shall be observed: the party proposing to take the action (e.g., the Executive Board, a committee , an officer, the manager, etc.) shall give written notice of the proposed action to all Unit Owners or occupants of Units whose interest would be significantly affected by the proposed action. The
ee , an officer, the manager, etc.) shall give written notice of the proposed action to all Unit Owners or occupants of Units whose interest would be significantly affected by the proposed action. The notice shall include a general statement of the proposed action and the date, time and place of the hearing. At the hearing, the affected person shall have the right, personally or by a representative, to give testimony orally, in writing or both (as specified in the notice), subject to reasonable rules of procedure established by the party conducting the meeting to insure a prompt and orderly resolution of the issues. Such evidence shall be considered in making the decision but shall not bind the decision makers. The affected person shall be notified of the decision in the manner in which notice of the meeting was given.
Section 21.2. Appeals. Any person having a right to Notice and Hearing shall have the right to appeal to the Executive Board from a decision of persons other than the Executive Board by filing a written notice of appeal with the Executive Board within ten (10) days after being notified of the decision. The Executive Board shall conduct a hearing within thirty (30) days, giving the same notice and observing the same procedures as were required for the original meeting.
-251 --LEVINE & STEWART ATTORNEYS AT LAW CHAPEL HILL. NORTH CAROLINA BOOK 2702 PAGE 326 ARTICLE 22.
EXECUTIVE BOARD Section 22.1. Minutes of Executive Board Meetings. The Executive Board shall permit any Unit Owner to inspect the minutes of Executive Board meetings during normal business hours. The minutes shall be available for inspection within fifteen (15) days after any such meeting.
Section 22.2. Powers and Duties. The Executive Board may act, in all instances, on
normal business hours. The minutes shall be available for inspection within fifteen (15) days after any such meeting.
Section 22.2. Powers and Duties. The Executive Board may act, in all instances, on behalf of the Association, except as provided in this Declaration, the Bylaws or the Condominium Act. The Executive Board shall have, subject to the limitations contained in this Declaration and the Condominium Act, the powers and duties necessary for the administration of the affairs of the Association and of the Condominium which shall include, but not be limited to, the following: a. adopt and amend Bylaws, Rules and Regulations; b. adopt and amend budgets for revenues, expenditures and reserves; c. collect assessments for Common Expenses from Unit Owners; d. hire and discharge managing agents; e. hire and discharge employees and agents, other than managing agents, and independent contractors; f. institute, defend or intervene in litigation or administrative proceedings or seek injunctive relief for violation of the Declaration, Bylaws or Rules and Regulations in the Association's name on behalf of the Association or two or more Unit Owners on matter's affecting the Condominium; g. make contracts and incur liabilities; h. regulate the use, maintenance, repair, replacement and modification of the Common Elements; i. cause additional improvements to be made as a part of the Common Elements; j. acquire, hold, encumber and convey in the Association's name any right, title or interest to real property or personal property, but Common Elements may be conveyed or subjected to a Security Interest only, pursuant to Section 47C-3-112 of the Condominium Act; -26LEVINE & STEWART ATTORNEYS AT LAW CHAPEL HILL. NORTH CAROLINA i BOOK 2702 PAGE 327
may be conveyed or subjected to a Security Interest only, pursuant to Section 47C-3-112 of the Condominium Act; -26LEVINE & STEWART ATTORNEYS AT LAW CHAPEL HILL. NORTH CAROLINA i BOOK 2702 PAGE 327 k. grant easements for any period of time including permanent easements, and leases, licenses and concessions for no more than one year, through or over the Common Elements; 1. impose and receive a payment, fee or charge for the use, rental or operation of the Common Elements, other than Limited Common Elements described in Section 47C-2102(2) and (4) of the Condominium Act, and for services provided to Unit Owners; m. impose a reasonable charge for late payment of assessments and, after Notice and Hearing, levy reasonable fines for violations of this Declaration, Bylaws, and the Rules and Regulations of the Association; n. impose a reasonable charge for the preparation and recordation of amendments to this Declaration, and resale certificates required by Section 47C-4-109 of the Condominium Act or a statement of unpaid assessments; o. provide for the indemnification of the Association's officer's and the Executive Board and maintain directors' and officers' liability insurance; p. assign the Association's right to future income, including the right to receive Common Expense assessments; q. exercise any other powers conferred by this Declaration or the Bylaws.
r. exercise any other power that may be exercised in this State by legal entities of the same type as the Association; s. exercise any other power necessary and proper for the governance and operation of the Association; and 1. by resolution, establish committees of Directors, permanent and standing, to perform any of the above functions under specifically delegated administrative standards, as
ion of the Association; and 1. by resolution, establish committees of Directors, permanent and standing, to perform any of the above functions under specifically delegated administrative standards, as designated in the resolution establishing the committee. All committees must maintain and publish notice of their actions to Unit Owners and the Executive Board. However, actions taken by a committee may be appealed to the Executive Board by any Unit Owner within forty-five (45) days of publication of such notice, and such committee action must be ratified, modified or rejected by the Executive Board at its next regular meeting.
Section 22.3. Executive Board Limitations. Ths Executive Board may not act on behalf of the Association to amend this Declaration, to terminate the Condominium or to elect members of the Executive Board or determine the qualifications, powers and duties, or terms of office of Executive Board members, but the Executive Board may fill vacancies in its membership for the unexpired portion of any term.
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