Document

7@ PGS DECLARATION OF COVENANTS, CONDITIONS AND ELC) FOR THE VILLAGES OF F ON' AN ADDITI THE CITY aw ITE, onernk Oh , TEXAS SO.

NEWMARK HOMES, L.P.

TABLE OF CONTENTS PAGE ARTICLE 1 - DEFINITIONS 1 ARTICLE 2 - PROPERTY SUBJECT TO DOCUMENTS 4 2.1.

Property 2.2.

Additional Property 2.3.

Shared Maintenance & Use Agreement 2.4.

Restrictions, Easements & Plat Dedications 2.5.

Water Detention Areas 4 4 4 4 4 3.1.

ARTICLE 3 - PROPERTY EASEMENTS AND RIGHTS General 3.2.

Easement for Screening Wall 3.3.

Owner's Easement of Enjoyment 3.4.

Owner's Maintenance Easement 3.5.

Townhome Easement 3.6.

Owner's Ingress/egress Easement 3.7.

Owner's Right to Build 3.8.

Owner's Encroachment Easement 3.9. Rights of City 3.10. Association's Access Easement 3.11. Utility Easement 3.12. Mineral Rights 3.13. Notice of Limitation on Liability 3.14. Security 3.15. Risk ARTICLE 4 - COMMON AREA 4.1.

Ownership 4.2.

Acceptance 4.3.

4.4.

Limited Common Area 4.5.

Shared Common Area ARTICLE 5-LOTS, TOWNHOMES & AREA OF COMMON RESPONSIBILITY Area of Common Responsibility 5.4.

Allocation of Interests Unofficial Copy 5 5 6 6 6 6 6 6 7 8 8 8 8 9 9 9 9 9 10 10 10 10 10 11 11 !

6.1.

ARTICLE 6 - ARCHITECTURAL COVENANTS AND CONTROL Purpose 11 11 6.2.

Architectural Control During the Development Period 11 6.3.

Architectural Control by Association 12 6.4.

Limits on Liability 12 6.5.

Prohibition of Construction, Alteration & Improvement 12 6.6.

Architectural Approval 13 ARTICLE 7 - CONSTRUCTION AND USE RESTRICTIONS 7.1.

Variance 7.2.

7.3.

Prohibition of Construction, Alteration & Improvement Limits to Rights 7.4.

Association's Right to Promulgate Rules 7.5.

Animals 7.6.

Annoyance 7.7.

Appearance 7.8.

Accessory Sheds 7.9.

Business Use

.

Prohibition of Construction, Alteration & Improvement Limits to Rights 7.4.

Association's Right to Promulgate Rules 7.5.

Animals 7.6.

Annoyance 7.7.

Appearance 7.8.

Accessory Sheds 7.9.

Business Use 7.10. Color Changes 7.11. Courtyards 7.12. Declarant Privileges 7.13.

Decoration 7.14. Drainage 7.15. Driveways 7.16. Garages 7.17. Landscaping 7.18. Leasing of Townhomes 7.19. Noise & Odor 7.20. Occupancy - Numbers 7.21. Occupancy - Types 7.22.

Residential Use 7.23. Signs 7.24. Signs - Political 7.25. Structural Integrity 7.26. Television 7.28. Variations 7.30 Window Treatments ARTICLE 8-ASSOCIATION OPERATIONS 8.1. The Association 8.2. Board 8.3.

Membership Unofficial Copy 14 14 15 15 16 16 16 16 16 16 16 16 17 17 17 17 17 18 18 18 18 18 18 19 19 19 19 20 20 21 21 ii 8.4.

Decision-Making 8.5.

Manager 8.6.

Communications 8.7.

Voting 8.8. Books & Records 8.9.

Indemnification 8.10. Obligations of Owners ARTICLE 9 - COVENANT FOR ASSESSMENTS 21 21 21 22 22 22 22 23 23 9.1.

Purpose of Assessments 9.2.

Personal Obligation 9.3.

Control for Assessment Increases 9.4.

Types of Assessments 9.5.

Basis & Rate of Assessments 9.6.

Declarant Obligation 9.7.

Annual Budget 9.8.

Shared Area Budget 9.9.

Due Date 9.10.

Reserve Funds 9.11. Association's Right to Borrow Money 9.12. Limitations on Interest 9.13. Contribution on Transfer of Title ARTICLE 10 ASSESSMENT LIEN 10.1.

Assessment Lien 10.2. Superiority of Assessment Lien 10.3. Effect of Mortgagee's Foreclosure 10.4. Notice and Release of Notice 10.5. Power of Sale 10.6.

Foreclosure of Lien cial Copy 26 26 26 26 27 27 27 28 28 28 28 28 28 28 ARTICLE 11-EFFECT OF NONPAYMENT OF ASSESSMENTS 29 11.1.

Interest 29 11.2. Late Fees 29 11.3. Costs of Collection 29 11.4. Acceleration

osure of Lien cial Copy 26 26 26 26 27 27 27 28 28 28 28 28 28 28 ARTICLE 11-EFFECT OF NONPAYMENT OF ASSESSMENTS 29 11.1.

Interest 29 11.2. Late Fees 29 11.3. Costs of Collection 29 11.4. Acceleration 11.5. Suspension of Use and Vote 29 29 11.6. Money Judgment 11.7. Notice to Mortgagee 118. Foreclosure of Assessment Lien 30 30 30 ARTICLE 12 - ENFORCING THE DOCUMENTS 30 12.1.

12.2.

Notice and Hearing Remedies 30 30 iii 16.1. Consents Required 16.2. Method of Amendment 16.3. Effective.

16.4. Declarant Provisions 16.5. Merger 16.6. Termination 14.1.

General Provisions 14.2. Insurance Rationale 14.3. Property Insurance by Association 14.4. Property Insurance by Owner 14.5. Property Insurance by Tenant 14.6. Variations in Property Insurance 14.7. Liability Insurance by Association 14.8. Liability Insurance by Owner 14.9. Directors & Officers Liability 14.10. Other Coverages 14.11. Owner's General Responsibility for Insurance ARTICLE 15-MORTGAGEF PROTECTION 15.1. Introduction 15.2. Mortgagee Rights 15.3. Limits on Association's Duties ARTICLE 16 AMENDMENTS 13.7. Concrete 13.8.

Sheetrock 13.9. Mold 13.10. Party Walls ARTICLE 14 - INSURANCE 12.3.

Board Discretion 31 12.4. No Waiver 31 12.5. Recovery of Costs 31 ARTICLE 13 - MAINTENANCE AND REPAIR OBLIGATIONS 32 13.1.

Overview 32 13.2.

Association Maintains 32 13.3. Area of Common Responsibility 32 13.4. Owner Responsibility 33 13.5. Owner's Default in Maintenance 35 13.6. Warranty Claims fficial Copy 43 43 43 43 43 43 44 ..44 37 37 37 37 38 39 39 40 40 40 40 40 41 41 41 42 36 16.7.

Condemnation iv ARTICLE 17 - DISPUTE RESOLUTION 17.1.

Introduction & Definitions 44 44 45 45 45 45 46 46 46 46 Copy 17.2. Mandatory Procedures

16.7.

Condemnation iv ARTICLE 17 - DISPUTE RESOLUTION 17.1.

Introduction & Definitions 44 44 45 45 45 45 46 46 46 46 Copy 17.2. Mandatory Procedures 17.3. Notice 17.4. Negotiation 17.5. Mediation 17.6.

Termination of Mediation 17.7. Allocation of Costs 17.8.

Enforcement of Resolution 17.9. General Provisions 17.10. Litigation Approval & Settlement 17.11. Construction-Related Disputes ARTICLE 18 - DECLARANT RIGHTS 18.1.

18.2.

General Definitions 18.3. Declarant Control Period Reservations - Governance 18.4. Declarant Control Period Reservations - Financial 18.5. Development Period Reservations 18.6.

Different Standards 18.7. Relationship with Builders 18.8. Common Areas 18.9. Successor Declarant ARTICLE 19 - GENERAL PROVISIONS 19.1. Compliance 19.2. Higher Authority 19.3. Notice 19.4. Liberal Construction 19.5. Severability 19.6. Interpretation 19.7. Duration.

19.8. Exhibits SIGNED AND ACKNOWLEDGED EXHIBIT A DESCRIPTION OF LAND EXHIBIT B-MAINTENANCE RESPONSIBILITY CHART EXHIBIT C-CONSENT BY OWNER OF REAL PROPERTY V 48 48 49 50 54 54 55 55 55 55 56 56 56 56 56 56 56 57 DECLARATION OF COVENANTS, CONDITIONS AND RESTRICTIONS FOR THE VILLAGES OF FALCON'S LAIR STATE OF TEXAS § § KNOW ALL PERSONS BY THESE PRESENTS THAT: COUNTY OF DALLAS § improvements thereon. Because part of the real property described in Exhibit Declarant on the date this Declaration is executed, the owner of that real prope maintain certain development rights that are essential { of the Property.

portions of The Villages of Falcon's Lair, an The Villages of Falcon's Lair. As an integra Declarant DECLAR made subject to this Decla

certain development rights that are essential { of the Property.

portions of The Villages of Falcon's Lair, an The Villages of Falcon's Lair. As an integra Declarant DECLAR made subject to this Decla which run with the-+ed érpy and bind all parties having or acquiring any right, title, or interest eir heirs, successors, and assigns, and inure to the benefit of each Owner ARTICLE 1 DEFINITIONS The following words and phrases, whether or not capitalized, have specified meanings when used in the Project Documents, unless a different meaning is apparent from the context in which the word or phrase is used.

| 1.1. "Additional Land" means real property which may be added to the Property and subjected to this Declaration by Declarant, as described in Article 18 of this Declaration.

1.2. “Architectural Reviewer" means the entity having jurisdiction over a particular application for architectural approval. During the Development Period, the Architectural Reviewer is Declarant, Declarant's designee, or Declarant's delegatee. Thereafter, the Board-appointed Architectural Control Committee is the Architectural Reviewer.

1.3. "Area of Common Responsibility" means that portion of the Property and those components of the townhomes for which the Association has maintenance responsibilitt described with more particularity in Article 5 of this Declaration, and as further described Maintenance Responsibility Chart attached hereto as Exhibit B.

1.4. "Assessment" means any charge levied against a lot or owner by : pursuant to the Project Documents or State law, including but not limited to Regt sscgsments, Special Assessments, Insurance Assessments, Individual Assessments, and PD icric MA ssessments,

owner by : pursuant to the Project Documents or State law, including but not limited to Regt sscgsments, Special Assessments, Insurance Assessments, Individual Assessments, and PD icric MA ssessments, as defined in Article 9 of this Declaration. Cy 1.5. "Association" means the association of owners 0 le Property, and serving as the "property owners’ association" defined in Section 202.001%2)% as Property Code. The 1.6. "Board" means the Board of Directors af 1.7. "Builder" is defined in Article.

1.8. "City" means the City,of Mg 1.9. "Common Area" {mé real property and improvements thereon that are owned and/or maintained/by 4 \ ion, as described in Article 4 below. Portions of the gPerty, or the successors and assigns of Newmark Homes, L.P., which are cessor Declarant by Newmark Homes, L.P., or by any such successor and assign, 1.12. "Declarant Control Period" is defined in Article 18 of this Declaration.

2 1.13. "Declaration" means this document, as it may be amended from time to time.

1.14. "Development Period" is defined in Article 18 of this Declaration.

1.15. "Lot" means a portion of the Property intended for independent ownership, on which there is or will be constructed a townhome, as shown on the Plat. As a defined term, "lot" does not refer to common areas, even if platted and numbered as a lot. Where the context indicates or requires, “lot" includes all improvements thereon and any portion ofa right-of-way that customarily is used exclusively by and in connection with the lot.

1.16. "Member" means a member of the Association, each member being an ow owner of all lots. Contract sellers and mortgagees who acquire tJ of foreclosure or through judicial or nonjudicial foreclosure are

"Member" means a member of the Association, each member being an ow owner of all lots. Contract sellers and mortgagees who acquire tJ of foreclosure or through judicial or nonjudicial foreclosure are ownership interests merely as security for the performance of owner is a member of the Association.

yOr entities having are not owners. Every including all dedications, limitations, restrict plat, as it may be amended from time to tim Falcon’s Lair, Phase 1," was recorded on F S, 4 esident" means an occupant of a townhome, regardless of whether the person owns the lot.

1.22. "Rules" means rules and regulations of the Association adopted in accordance with the Project Documents or applicable law. The initial Rules may be adopted by Declarant for the benefit of the Association.

1.23. "Townhome" means the attached single-family townhome on each individually-owned townhome lot. "Townhome Building" means the structure containing multiple townhomes.

Generally, The Villages of Falcon’s Lair has 2 or 4 townhomes per townhome building. Although all components of a townhome building are owned by the respective lot owners, some components may be maintained by the Association as Areas of Common Responsibility.

ARTICLE 2 PROPERTY SUBJECT TO DOCUMENTS 2.1. Property. The real property described in Exhibit A is held, transferreq leased, occupied, used, insured, and encumbered subject to the terms, e reservations in Article 18 below, which run with the Property and any right, title, or interest in the Property, their heirs, successors, of each owner of the Property.

yng oracquiring re to the benefit 2.2. Additional Property. Additional real prép may exed to the Property and

itle, or interest in the Property, their heirs, successors, of each owner of the Property.

yng oracquiring re to the benefit 2.2. Additional Property. Additional real prép may exed to the Property and subjected to the Declaration and the jurisdiction of the Agsociation on approval of owners representing at least two-thirds of the lots in the Prose dwring the Development Period, by Declarant as permitted in Article 18 below. dditional property is accomplished by recording a declaration of annexation, includ? dudifiént of Exhibit A, in the Real Property Records of Dallas County, Texas.

2.3. Shared Maintenangé reement. The Property is subject to the Shared Maintenance & Use Agreement recorded in the Real Property Records of Dallas County, Texas. The Agreemnghg getythe owners of The Villages of Falcon’s Lair and the (Be ents & Plat Dedications. In addition to the easements and int restrictions contgf is Declaration, the Property is subject to all restrictions, easements, licenses, Je of which erein by reference. Each owner, by accepting an interest in or title to a lot, wheth ¢xpressed in the instrument of conveyance, covenants and agrees to be bound by p ecorded restrictions, easements, licenses, leases, and encumbrances, and further agrees to maintalg ement that crosses his lot and for which the Association does not have express responsibi 2.5. Water Detention Areas. The common areas of the Property include one or more water detention areas required by the city for the management of surface water runoff. A water detention 4 area 1s designed to detain surface water for short periods during heavy rainfalls and to be a “dry

ement of surface water runoff. A water detention 4 area 1s designed to detain surface water for short periods during heavy rainfalls and to be a “dry pond" the rest of the time. It is not engineered to be a lake or to hold water on a regular basis. It can be challenging to permanently landscape a terrain that purposefully rotates between being a water pond and a dry pond. The water detention area must be maintained by the Association, and may require periodic de-silting to remove silt that accumulates during wet periods. Without the city's approval, a water detention area may not be used for any purpose that interferes with its role in surface water management. This explanation is for persons who wonder why those areas are not more extensively improved, landscaped, or used.

ARTICLE 3 PROPERTY EASEMENTS AND RIGHTS 3.1. General.

as a common area. In exercising this Screening Wa maintain, improve, and replace improveme aresidential subdivision, including: screening and a material; electrical and water meters interfere with and prevent the A use-of the Screening Wall Easement. In addition to the q i ythe temporary right, from time to time, to use as much as the surface of a burdened contemplated work on the x Wall Easement. This easement is perpetual. The Screening the purpose of the easement ceases to exist, is abandoned by the ble to perform. The Association may assign this easement, or any , ald does not apply or pertain to fences installed on individual lots, even # major thoroughfare.

enjoyment over the common areas and to use of improvements therein, subject to other rights and easements contained in the Project Documents. An owner who does not occupy a lot delegates this

ughfare.

enjoyment over the common areas and to use of improvements therein, subject to other rights and easements contained in the Project Documents. An owner who does not occupy a lot delegates this right of enjoyment to the residents of his lot. Notwithstanding the foregoing, if a portion of the common area, such as a recreational area, is designed for private use, the Association may temporarily reserve the use of such area for certain persons and purposes.

3.4. Owner's Maintenance Easement. Every owner is granted an access easement over adjoining lots and common areas for the maintenance or reconstruction of his townhome and other improvements on his lot, provided exercise of the easement does not damage or materially interfere with the use of the adjoining lot or common area. Requests for entry to an adjoining lot or common area must be made to the owner of the adjoining lot, or the Association in the case of common areas, in advance for a time reasonably convenient for the adjoining owner, who may not unreasonably withhold consent. [fan owner damages an adjoining lot or common area in exercising this ea the owner is obligated to restore the damaged property to its original condition, at his expense, a reasonable period of time.

3.5. Townhome Easement. Every owner of a Townhome Lot Is ge easement over, under, and through every other townhome lot in the same easement is reasonable and necessary. In the event of dispute the anticipated use of this easement is reasonable and neces§ e items? s’easement and reciprocal townhomes in one building may be or roofline installations of wiring a duty to refrain from interfering with or damaging responsibility anticipates that the electrical meters for

sement and reciprocal townhomes in one building may be or roofline installations of wiring a duty to refrain from interfering with or damaging responsibility anticipates that the electrical meters for grouped at one end of the building. It also anticipate may be the most cost effective and least ungightl services.

3.6. Owner's Ingress/egress Ea t owner is granted a perpetual easement over the Property's streets, as may be r, Esdna equjrqd, for vehicular ingress to and egress from his lot.

3.7. Owner's Rig a residential lot remains vacant and unimproved for a period of years, even decadés hment Easement. Every owner is granted an easement for the €xisting or which may come into existence hereafter, as a result of shifting, settlement, or movement of any portion of a building, or as a result of 3.9. Rights of City. In addition to its rights under the Shared Maintenance & Use Agreement, the City of Mesquite, including its agents and employees, has the right of immediate access to the common areas at all times if necessary for the welfare or protection of the public, to 6 enforce City ordinances, or for the preservation of public property. If the Association fails to maintain the common areas to a standard acceptable to the City, the City may give the Association a written demand for maintenance. If the Association fails or refuses to perform the maintenance within a reasonable period of time after receiving the City’s written demand (at least 90 days), the City may maintain the common areas at the expense of the Association after giving written notice of its intent to do so to an owner of every lot as shown on the City's property tax rolls. To fund the

City may maintain the common areas at the expense of the Association after giving written notice of its intent to do so to an owner of every lot as shown on the City's property tax rolls. To fund the City's cost of maintaining the common areas, the City may levy an assessment against every lot in the Property in the same manner as if the Association levied a special assessment against the lots.

3.10. Association's Access Easement. Each owner, by accepting an interest in or tiffAto a lot, whether or not it is so expressed in the instrument of conveyance, grants to the Assgei a. To inspect the property for compliance standards.

b. To perform maintenance that is perm t required of the Association by the Project Documents or by applic or required of the owner by the Project Documents or by appli € owner fails or refuses to perform such maintenance.

d.

e.

f.

g. q enforce any other provision of the Project Documents.

@ respond to emergencies.

To grant easements to utility providers as may be necessary to install, maintain, and inspect utilities serving any portion of the Property.

aye To perform any and all functions or duties of the Association as permitted or required by the Project Documents or by applicable law.

7 3.10.2. No Trespass. In exercising this easement on an owner's lot, the Association is not liable to the owner for trespass.

3.10.3. Limitations. If the exercise of this easement requires entry onto an owner's lot, including into an owner's fenced yard, the entry will be during reasonable hours and after notice to the owner. This Subsection does not apply to situations that - at time of entry - are deemed to be emergencies that may result in imminent damage to or loss of life or property.

rs and after notice to the owner. This Subsection does not apply to situations that - at time of entry - are deemed to be emergencies that may result in imminent damage to or loss of life or property.

3.11. Utility Easement. The Association may grant permits, licenses, and easements over common areas for utilities, roads, and other purposes necessary for the proper operation 4f 3.12. Mineral Rights. Some or all of the Property may acquisition, reservation, or conveyance of oil, gas, or mineral ry , Texas, including but not ani to rights to all oil, gas, or other minerals lying on, i of the Property and surface recorded prior to this, Declaration, those interests in theXrd Rerty are superior and are not affected by any provision to the contrary in this Declaration. J owner acknowledges the existence of the mingxal rig and the attendant rights in favor of the own, eservations referenced in this Santian fe mineral interests.

desire to impose such absolute liability on the nonprofit g plat notes or public codes or ordinances now in existence annot and should not be liable for acts of God or for property 3.14. Security. The Association may, but is not obligated to, maintain or support certain activities within the Property designed, either directly or indirectly, to improve safety in or on the Property. Each owner and resident acknowledges and agrees, for himself and his guests, that Declarant, the Association, and their respective directors, officers, committees, agents, and employees are not providers, insurers, or guarantors of security within the Property. Each owner and resident acknowledges and accepts his sole responsibility to provide security for his own person and

mployees are not providers, insurers, or guarantors of security within the Property. Each owner and resident acknowledges and accepts his sole responsibility to provide security for his own person and property, and assumes all risks for loss or damage to same. Each owner and resident further acknowledges that Declarant, the Association, and their respective directors, officers, committees, agents, and employees have made no representations or warranties, nor has the owner or resident relied on any representation or warranty, express or implied, including any warranty of merchantability or fitness for any particular purpose, relative to any fire, burglar, and/or intrusion systems recommended or installed, or any security measures undertaken within the Property owner and resident acknowledges and agrees that Declarant, the Association, and their x¢ 3.15. Risk. Each resident uses all common areas at his own risk.

unattended and unsupervised. Each resident is solely responsible for his 9 death occurring from use of the common areas.

ARTICLE 4 4.1. Ownership. The designation of real pre plat and this Declaration, and not by the ow that the Association will eventually hold ownership by the Association. Declarant may not a common expense of the including maintenance, prop pAnce, and enhancements, are automatically the responsibility of the Assoc} of the nature of title to the common areas, unless this condition; (2) tog for all degisiow® title to atioiby or through the Declarant is a ministerial task that does not require ' ociation; and (4) to acknowledge the continuity of maintenance of the common

ministerial task that does not require ' ociation; and (4) to acknowledge the continuity of maintenance of the common on or adjacent to the Property, even if located on a lot or a public right-of-way: a. All of the Property, save and except the house Lots.

9 b. Any area shown on the plat as common area or an area to be maintained by the Association.

c. The formal entrances to the Property, including (if any) the signage, landscaping, electrical and water installations, planter boxes and fencing related to the entrance.

d. Screening walls, fences, or berms along the perimeter of the Property initially installed by Declarant (if any), and replacements thereof.

e. Landscaping on street islands, to the extent it is not maintained by the city.

f. Any modification, replacement, or addition to any of the above-described improvements.

g. Personal property owned by the Association, such as book equipment, and supplies.

4.4, Limited Common Area. If it is in the best interes atigm, a portion of the common area may be licensed, leased, or allocated to one or eir sole and exclusive use, as a limited common area, whether or not the area is so de e plat. Inherent in the limiting of acommon area, maintenance of the limited¢Ogmon afeabeedmes the responsibility of the lot owner, rather than the Association. For exampléya ’gmmon area that is difficult to access didate for limited common area.

5.1. Lots. The Prop . Each residential lot is to be improved with a townhome. The owner of ponent of the lot and townhome, including all the structural components and } of the townhome. Nevertheless, this Declaration identifies components of the

to be improved with a townhome. The owner of ponent of the lot and townhome, including all the structural components and } of the townhome. Nevertheless, this Declaration identifies components of the Areas of Common Responsibility, to be maintained by the Association as a common 10 5.3. Area of Common Responsibility. The initial designation of the Area of Common Responsibility is located in the column so titled in the Maintenance Responsibility Chart at Exhibit B of this Declaration.

5.4. Allocation of Interests. Subject to Declarant's rights under Article, the interests allocated to each lot are calculated by the following formulas.

5.4.1. Common Expense Liabilities. The percentage or share of liability for common expenses allocated to each platted townhome lot is uniform for all platted townhome lots, regardless of the value, size, or location of the lot or townhome. Unplatted tracts of lj not subject to regular and special assessments.

for all platted townhome lots, regardless of a lot's other attributes, such a or value. If land subject to this Declaration is not platted, each tenth gta to the nearest one-tenth acre) has one vote, the weight of which is platted townhome lot.

ARTICLE 6 ots and common areas in order to preserve and enhance the Property's value Te it ony. One purpose of this Article is to promote and ensure the level of taste, 4nd harmony by which the Property is developed and maintained. Another purposs provements and modifications that may be widely considered to be radical, e, or peculiar in comparison to then existing improvements. A third surpose iso isti edt6 townhomes, fences, landscaping, retaining walls, er including replacements or modifications of original

dical, e, or peculiar in comparison to then existing improvements. A third surpose iso isti edt6 townhomes, fences, landscaping, retaining walls, er including replacements or modifications of original cant lots. During the Development Period, the Architectural Reviewer for acant lots is the Declarant or its delegatees.

/\. Declarant's Rights Reserved. Each owner, by accepting an interest in or title to ether or not it is so expressed in the instrument of conveyance, covenants and agrees that Dedlavant has a substantial interest in ensuring that the improvements within the Property enhance Declarant's reputation as acommunity developer and do not impair Declarant's ability to market its property or the ability of Builders to sell townhomes in the Property.

Hl Accordingly, each owner agrees that - during the Development Period - no improvements will be started or progressed on owner's lot without the prior written approval of Declarant, which approval may be granted or withheld at Declarant's sole discretion. In reviewing and acting on an application for approval, Declarant may act solely in its self-interest and owes no duty to any other person or any organization. Declarant may designate one or more persons from time to time to act on its behalf in reviewing and responding to applications.

6.2.2, Delegation by Declarant. During the Development Period, Declarant may from time to time, but is not obligated to, delegate all or a portion of its reserved rights under this scope of delegated responsibilities. Any such delegation is at all times subjé rights of Declarant (1) to revoke such delegation at any time and reass the matters previously delegated and (2) to veto any decision wh)

ed responsibilities. Any such delegation is at all times subjé rights of Declarant (1) to revoke such delegation at any time and reass the matters previously delegated and (2) to veto any decision wh) discretion determines to be inappropriate or inadvisable ford 6.3. Architectural Control by Association. Unless Assocta has no jurisdiction over architectural matters. On termination or expiration of the opment Period, or earlier if delegated architectural control. The ACC will consist the Board, pursuant to the bylaws. Members be removed and replaced at the Board's dis e Board's option, the Board may act as the ACC, in which case all references j ents to the ACC are construed to mean the Board. Members of the ACC C trs or residents, and may but need not include “Architectural Reviewer has sole discretion with respect to Pied by this Article. The Architectural Reviewer and each of its Reviewer's prior written approval, a person may not construct a townhome or make an addition, alteration, improvement, installation, modification, redecoration, or reconstruction of or to a townhome or any other part of the Property, if it will be visible from a street or the common area, 12 or by a person standing at ground level of another townhome. The Architectural Reviewer has the right but not the duty to evaluate every aspect of construction, landscaping, and property use that may adversely affect the general value or appearance of the Property.

6.6. Architectural Approval. To request architectural approval, an owner must make written application and submit to the Architectural Reviewer 2 identical sets of plans and

ppearance of the Property.

6.6. Architectural Approval. To request architectural approval, an owner must make written application and submit to the Architectural Reviewer 2 identical sets of plans and specifications showing the nature, kind, shape, color, size, materials, and locations of the work to be performed. In support of the application, the owner may but is not required to submit letters of support or non-opposition from owners of lots that may be affected by the proposed change. The application must clearly identify any requirement of this Declaration for which a variance is goght.

The Architectural Reviewer will return one set of plans and specifications to the applic manager does not constitute architectural approval by the which must be in writing.

be Architeetufal Reviewer to respond to _ plication. Under no circumstance 6.6.2. No Deemed Approval. The failure an application may not be construed as approval o roval of the Architectural Reviewe No Approval Required repaint fhe inter ior of atownhome, pr of the building.

6.6.4. Building Pa % cation is for work that requires a building permit from a governmenta dy itectural Reviewer's approval is conditioned on the issuance of the apprdp Sein The Architectural Reviewer's approval of plans and gital approval does not ensure Architectural Reviewer approval.

agze,“or from which the proposed change may be visible. Whether to solicit whom to solicit comments, and whether to make the comments available to gnt is solely at the discretion of the Architectural Reviewer. The Architectural s not required to respond to the commenters in ruling on the application.

and whether to make the comments available to gnt is solely at the discretion of the Architectural Reviewer. The Architectural s not required to respond to the commenters in ruling on the application.

6.6.6. Declarant Approved. Notwithstanding anything to the contrary in this Declaration, any improvement to the Property made or approved by Declarant during the Development Period is deemed to have been approved by the Architectural Reviewer.

13 ARTICLE 7 CONSTRUCTION AND USE RESTRICTIONS 7.1. Variance. The use of the Property is subject to the restrictions contained in this Article, and subject to rules adopted pursuant to this Article. The Board or the Architectural Reviewer, as the case may be, may grant a variance or waiver of a restriction or rule on a case-by-case basis when unique circumstances dictate, and may limit or condition its grant. To be effective, a variance must be in writing. The grant of a variance does not effect a waiver or estoppel of the Association's right to deny a variance in other circumstances. Approval of a variance or waiver may not be deemed, implied, or presumed under any circumstance.

7.2. Prohibition of Construction, Alteration & Improvement. Without the alteration, addition, improvement, installation, redecoration, or reconstruction of or do anything that affects the appearance, use, or structural integrity o Architectural Reviewer has the right to evaluate every aspect of constructié may adversely affect the general value or appearance of the Prop Cs 7.3. Limits to Rights. No right granted to an owner b Article and the Project Documents as a whole do not t anticipate and address every creative

affect the general value or appearance of the Prop Cs 7.3. Limits to Rights. No right granted to an owner b Article and the Project Documents as a whole do not t anticipate and address every creative interpretation of the restrictions. The rights granted by thi icle and the Project Documents are at all times subject to the Board's determinati terpretation and exercise ofa right is significantly inappropriate, unattractive, 0 “itable for the neighborhood, and thus constitutes a violation of the Project Documents’ acrWords, the exercise of a right or restriction must comply with the spirit of the restrictigona » with the letter of the restriction.

7.4. Association's Rigk ules. The Association, acting through its Board, is granted the right to ado} al, and enforce reasonable Rules, and penalties for infractions thereof, regard! M& oscupdncy, use, disposition, maintenance, appearance, and enjoyment of the Property. fwaddtiomJé the restrictions contained in this Article, each lot is owned and occupied subject tg i the Board to establish Rules, and penalties for infractions thereof, governing: areas and Areas of Common Responsibility.

egal, or annoying materials or activities on the Property.

se pf Property-wide services provided through the Association.

onsumption of utilities billed to the Association.

e/use, maintenance, and appearance of exteriors of townhomes and lots.

f. 4ndscaping and maintenance of yards.

g. The occupancy and leasing of townhomes.

h Animals.

1 Vehicles.

14 Disposition of trash and control of vermin, termites, and pests.

k. — Anything that interferes with maintenance of the Property, operation of the Association, administration of the Project Documents, or the quality of life for residents.

Ce =

, termites, and pests.

k. — Anything that interferes with maintenance of the Property, operation of the Association, administration of the Project Documents, or the quality of life for residents.

Ce = 7.5. Animals. No animal, bird, fish, reptile, or insect of any kind may be kept, maintained, raised, or bred anywhere on the Property for a commercial purpose or for food. Customary domesticated household pets may be kept subject to the Rules. The Board may adopt, amend, and repeal rules regulating the types, sizes, numbers, locations, and behavior of animals at the Property.

The Board may require or effect the removal of any animal determined to be in violation of this Section or the Rules. Unless the Rules provide otherwise: 7.5.1. Number. No more than 4 pets may be maintained in each townhor 7.5.2. Disturbance. Pets must be kept in a manner that does enjoyment of residents of other lots. No pet may be permitte arbiter of what constitutes a disturbance or annoyance.

7.5.3. Indoors/Outdoors. A permitted pe t be matmtaitfed inside the townhome, and may not be kept on a patio or ina yard area. No allowed on the common area unless carried or leashed.

7.5.4. Pooper Scooper. Reside the Property. Unless the Rules pro relieving itself on the common.area owner. > responsible for any property damage, injury, or an “animal kept on the lot. The owner of a lot on which an 7.7. Appearance. Both the lot and the townhome must be maintained in a manner so as not to be unsightly when viewed from the street or neighboring lots. The Architectural Reviewer is the arbitrator of acceptable appearance standards.

15 7.8. Accessory Sheds. Accessory structures and sheds - such as dog houses, gazebos, metal

er is the arbitrator of acceptable appearance standards.

15 7.8. Accessory Sheds. Accessory structures and sheds - such as dog houses, gazebos, metal storage sheds, playhouses, and greenhouses - are not allowed on any lot.

7.9. Business Use. A resident may use a townhome for business uses, such as telecommuting, personal business, and professional pursuits, provided that: (1) the uses are incidental to the primary use of the townhome as a residence; (2) the uses conform to applicable governmental ordinances; (3) the uses do not entail visits to the townhome by employees or the public in quantities that materially increase the number of vehicles parked on the street; and (4) the uses do not interfere with the residential use and enjoyment of neighboring lots by other residents.

the Architectural Reviewer determines the colors that are acceptable to the As change or add colors that are visible from the street, a common area, or anothg written approval of the Architectural Reviewer.

e from the street use and maintain his eighborhood. If the 7.11. Courtyards. This Section applies to an entry cou by virtue of see-through or open-picket fencing or gate. An courtyard in a neat and attractive manner that is co Architectural Reviewer perceive that the appearancé detracts from the overall appearance of the Property, the Architectural Reviewer ma) t the colors, numbers, sizes, or types of furnishings, plantings, and other items kept in thg A courtyard may not be used for storage. © 7.12. Declarant Privileges. In con#e Property, Declarant has reserved a are not available to other owne Declarant's exercise of a Develdprhéy \od-right that appears to violate a rule or a use restriction

2. Declarant Privileges. In con#e Property, Declarant has reserved a are not available to other owne Declarant's exercise of a Develdprhéy \od-right that appears to violate a rule or a use restriction of this Article does not cons bandonment of the restriction by the Association.

e development and marketing of the privileges to use the Property in ways that 7.13. Decoration. Residt uSt refrain from individualizing and decorating the exteriors of their townhomes. Wbh appealing and attractive to one person, may be objectionable to another. For that reasa Agsociation prohibits exterior "decorations" by owners without the prior written appfovaks Architectural Reviewer. Examples of exterior decorations are windsockg : benches, name signs on tiles, hanging baskets, bird feeders, awnings, window DN ard gnomes, and clay frogs.

the Board.

7.15. Driveways. The driveway portion of a lot may not be used for any purpose that interferes with its ongoing use as a route of vehicular access to the garage. Without the Board's prior 16 approval, a driveway may not be used: (1) for storage purposes, including storage of boats, trailers, and inoperable vehicles; or (2) for repair or restoration of vehicles.

7.16. Garages. Without the Board's prior written approval, the original garage area of a townhome may not be enclosed or used for any purpose that prohibits the parking of two standardsize operable vehicles therein. Garage doors are to be kept closed at all times except when a vehicle is entering or leaving.

7.17. Landscaping. No person may perform landscaping, planting, or gardening on the for providing his tenant with copies of the Project Documents and notifying him o

a vehicle is entering or leaving.

7.17. Landscaping. No person may perform landscaping, planting, or gardening on the for providing his tenant with copies of the Project Documents and notifying him o Failure by the tenant or his invitees to comply with the Project Documents, fede of his tenant's siiolationi, the owner will prompily obtain hifs tenant’ as a landlord for tenant's breach of lease. Ifthe tenant's violatio owner is unable, unwilling, or unavailable to obtain his tenant's against his tenant. The Association is not liable to the suffered by the owner in relation to the Assocyfyon'g e the owner's tenant.

re constructed to reduce the transmission of t omes are not soundproofed. Some noise ssible. A resident must exercise reasonable care dl, disturbing, or objectionable noises or noxious odors xlents of neighboring townhomes. The rules may limit, 7.19. Noise & Odor. Although the person.

17 7.21, Occupancy - Types. A person may not occupy a townhome if the person constitutes a direct threat to the health or safety of other persons, or if the person's occupancy would result in substantial physical damage to the property of others, This Section does not and may not be construed to create a duty for the Association or a selling owner to investigate or screen purchasers or prospective purchasers of townhomes. By owning or occupying a townhome, each person acknowledges that The Villages of Falcon’s Lair 1s subject to local, state, and federal fair housing laws and ordinances. Accordingly, this Section may not be used to discriminate against classes or categories of people.

7.23. Signs. No signs, including signs advertising the townhomes for s¢fe

ousing laws and ordinances. Accordingly, this Section may not be used to discriminate against classes or categories of people.

7.23. Signs. No signs, including signs advertising the townhomes for s¢fe unsightly objects may be erected, placed, or permitted to remain on the Property orf windows in the townhome without written authorization of the Board. If the Boa the Board's authorization may specify the location, nature, dimensions, nui any advertising sign. As used in this Section, "sign" includes, withet symbols, pictures, shapes, lights, banners, and any other represg message. The Association may effect the immediate removal of , images, that conveys a trespass or any other liability connected with the remo 7.24. Signs - Political. If public law - such as Texas ordinances - grants an owner the right to place politi not prohibit an owner's exercise of such i re efation may adopt and enforce Rules regulating every aspect of political signs on gs e extent not prohibited or protected by er an election to which the sign relates; (2) a Mer may not display more than one political sign Property, “exeépt (1) reception-only antennas or satellite dishes designed to receive television broadcast signals, (2) antennas or satellite dishes that are one meter or less in diameter and designed to receive direct broadcast satellite service (DBS), or (3) antennas or satellite dishes that are one meter or less in diameter or diagonal measurement and designed to receive video programming 18 services via multipoint distribution services (MDS) (collectively, the "Antenna”) are permitted if located (a) inside the structure (such as in an attic or garage) so as not to be visible from outside the

ices via multipoint distribution services (MDS) (collectively, the "Antenna”) are permitted if located (a) inside the structure (such as in an attic or garage) so as not to be visible from outside the structure, (b) in a fenced yard, or (c) attached to or mounted on the rear wall of a structure below the eaves. If an owner determines that an Antenna cannot be located in compliance with the above guidelines without precluding reception of an acceptable quality signal, the owner may install the Antenna in the least conspicuous location on the lot where an acceptable quality signal can be obtained. The Association may adopt reasonable rules for the Jocation, appearance, camouflaging, installation, maintenance, and use of the Antennas to the extent permitted by public law.

hours for curbside trash containers, the container may be in the designated area evening before trash pick-up day until dusk on the day of trash pick-up. At that are different from the standards for other buildings or pha controlled individualization of townhome exteriors.

ed or operated by the residents or pted by the Board. The Board may bers, conditions, uses, appearances, and locations of vehicles on the Property. NBoardiumy effect the removal of any vehicle in violation of this Section or the Rules wyfhewt abiliPy to the owner or operator of the vehicle.

7. 29. Vehicles. All vehicles on the Property, ye ept\pe or stored anywhere on the Property - including aysNand visitor parking spaces - if the vehicle is visible from a abilé homes, motor homes, buses, trailers, boats, aircraft, explosive cargo are prohibited from the Property at all times. Vehicles park on public streets only if the city allows curbside parking, and in

lé homes, motor homes, buses, trailers, boats, aircraft, explosive cargo are prohibited from the Property at all times. Vehicles park on public streets only if the city allows curbside parking, and in .36:-Window Treatments. Each townhome building in Villages of Falcon’s Lair is designed to have a uniform window appearance. Therefore, the color and condition of all windows panes, window screens, and window treatments must conform to the building standard. All window treatments within the townhome, that are visible from the street or another townhome, must be 19 maintained in good condition and must not detract from the appearance of the Property. All window treatments within a townhome building must be uniform, although styles of window treatments may vary from townhome building to townhome building. The Architectural Reviewer may require an owner to change or remove a window treatment, window film, window screen, or window decoration that the Architectural Reviewer determines to be inappropriate, unattractive, or inconsistent with the Property's uniform window standard. The Architectural Reviewer may prohibit the use of certain colors or materials for window treatments. If the Rules fail to establish a different standard, all window treatments - as seen from the street - must be white in color and the style must be 2-inch Venetian horizontal blinds.

ARTICLE 8 ASSOCIATION OPERATIONS 8.1. The Association. The existence and legitimacy of the Association is Declaration and the Bylaws of the Association.

me_t6 time.

8.1.1. Type. The Association must be a nonprg unincorporated or incorporated, as the Association deg Association incorporates, the subsequent failure of the Ag

e Bylaws of the Association.

me_t6 time.

8.1.1. Type. The Association must be a nonprg unincorporated or incorporated, as the Association deg Association incorporates, the subsequent failure of the Ag charter from time to time does not affect the existence or legitimacy of the Association.

If the 8.1.2. Applicability. The Association is suB}ecNo the Texas Business Organizations Code ("TBOC"). Because provisions of this De ti0n address issues covered by the TBOC, this Declaration is a "Governing Docu ¥ dé fined tb herein is a "Bylaw" as defined by TB hen unincorporated, the Association mincorporated Nonprofit Association Act.

e that is approved by the Board and (1) registered by at Dallas County, Texas, as an assumed name, or (2) filed the Board with the Co j ecpetary of State as the name of the filing entity. The Association by the Associatio . \Ddties. The duties and powers of the Association are those set forth in the Wo¢uments, together with the general and implied powers of a property owners atfon organized under the laws of the State of Texas. Generally, the Association may do any and all things that are lawful and necessary, proper, or desirable in operating for the peace, health, comfort, and general benefit of its members, subject only to the limitations on the exercise of such powers as stated in the Project Documents.

20 8.1.5. Duration. The Association comes into existence on the later to occur of the two following events: (1) the date on which this Declaration is recorded in the Real Property Records of Dallas County, Texas, or (2) the date on which a deed is recorded in the Real Property Records of Dallas County, Texas, evidencing diversity of ownership in the Property

n the Real Property Records of Dallas County, Texas, or (2) the date on which a deed is recorded in the Real Property Records of Dallas County, Texas, evidencing diversity of ownership in the Property (that the Property is not owned entirely by Declarant or its affiliates). The Association will continue to exist at least as long as this Declaration, as it may be amended, is effective against all or part of the Property.

8.2. Board. The Association is governed by a Board of Directors. Unless the Association's Bylaws or Articles of Association provide otherwise, the Board will consist of at least 3 pe elected by the members at the annual meeting of the Association, or at a special meeting Unless the context indicates otherwise, references in the Project Documents to the " be construed to mean "the Association acting through its Board of Directors, 8.3. Membership. Each owner is a member of the Associafie sole qualification for membership. Membership is appurtenant fo 4 ownership of the lot. The Board may require satisfactory evide e“separated from of ownership before 3 owned by more than e Assotte and may exercise the membership rights appurtenant to the lot. A member who is lot under a contract for deed may to the Board. However, the contract seller reptgins until fee title to the lot is transferred.

the Association may be made by or at the § reserve the decision or act to the members, the ste Project Documents or applicable law provide the members may be approved (1) at a meeting by 8.4. Decision-Making. Any decig Declarant, or any other person q otherwise, any action requignp 2 owners of at least a majorit meeting was given to an owne lots, provided the opporfinity ty apppove or disapprove was given to an owner of each lot.

any other person q otherwise, any action requignp 2 owners of at least a majorit meeting was given to an owne lots, provided the opporfinity ty apppove or disapprove was given to an owner of each lot.

managers 9 agingapents of the Association. Notwithstanding a delegation of its functions, the Board is &tifsa espoxSible to the members for governance of the Association. As stated in the Shared ance de Use Agreement, the Association will make a diligent effort to employ the sams property Iahager or managing agent that is used by the Falcon’s Ridge Owners Association, and to’ eSame contractors for landscape maintenance. Such sharing is encouraged to ensure a consiste?r-appearance and level of maintenance for the two-subdivision neighborhood.

8.6. Communications. This Declaration is drafted in an era of rapidly changing communication technologies. Declarant does not intend to limit the methods by which the 21 Association, owners, and residents communicate with each other. Such communications may be by any method or methods that are available and customary. For example, if the Association is required by the Project Documents or applicable law to make information available to owners of all lots, that requirement may be satisfied by posting the information on the Association's website or by using electronic means of disseminating the information, unless applicable law requires a specific method of communication. It is foreseeable that meetings of the Association and voting on issues may eventually be conducted via technology that is not widely available on the date of this Declaration.

As communication technologies change, the Association may adopt as its universal standard any

s may eventually be conducted via technology that is not widely available on the date of this Declaration.

As communication technologies change, the Association may adopt as its universal standard any technology that is used by owners of at least 85 percent of the lots. Also, the Association may employ multiple methods of communicating with owners and residents.

8.7. Voting. One indivisible vote is appurtenant to each lot. The total numbe during the Declarant Control Period as permitted in Article 18 below.

allowed. Votes may be cast by written proxy, according to the rpettre 8.8. Books & Records. The Association will maintain copie roject Documents and the Association's books, records, and financial stateme rhe Assde will make its books and records available to members, on request, for inspection opying.

8.9. Indemnification. The ney <4 officer, director, committee chair, h a and committee member (for purposes of t eader in connection with an action, suit, or proceeding to which the Leader j fiy BY rzaSarof being or having been a Leader. A Leader is not liable for a mistake of judgxae i lor otherwise. A Leader is liable for his willful misfeasance, malfeasance, misdords ad faith. This right to indemnification does not exclude any other rights to which pr¢ aders may be entitled. The Association may maintain general liability and directots ers Tiability insurance to fund this obligation. Additionally, the Association may indem who is or was an employee, trustee, agent, or attorney of the Association, againg ty asserted against him and incurred by him in that capacity and arising out of that cap “10.1. Pay Assessments. Each owner will pay assessments properly levied by the Association against the owner or his lot, and will pay regular assessments without demand by

and arising out of that cap “10.1. Pay Assessments. Each owner will pay assessments properly levied by the Association against the owner or his lot, and will pay regular assessments without demand by the Association.

22 8.10.2. Comply. Each owner will comply with the Project Documents as amended from time to time.

8.10.3. Reimburse. Each owner will pay for damage to the Property caused by the negligence or willful misconduct of the owner, a resident of the owner's lot, or the owner or resident's family, guests, employees, contractors, agents, or invitees.

8.10.4. Liability. Each owner is liable to the Association for violations of the Project Documents by the owner, a resident of the owner's lot, or the owner or resident's family, guests, employees, agents, or invitees, and for costs incurred by the Association to gttain compliance, including attorney's fees whether or not suit is filed.

ARTICLE 9 COVENANT FOR ASSESSMENTS 9.1. Purpose of Assessments. The Association will use assessment ef person or entity regarding any matter imself from his assessment liability by has a dispute with the Association, another o to which this Declaration pertains. No owng s it contingent on the Association's performance ents is both a continuing affirmative covenant enant running with the lot.

of the Association's duties.

personal to the owner and 9.3. Control for A amended without the ap Drea granted to owners by ike Dich Association's bug mcreases. This Section of the Declaration may not be ers of at least two-thirds of the lots. In addition to other rights petitier’ or at a meeting of the Association. In that event, the last-approved budget will continue in effect until a revised budget is approved.

23

two-thirds of the lots. In addition to other rights petitier’ or at a meeting of the Association. In that event, the last-approved budget will continue in effect until a revised budget is approved.

23 9.3.2. Veto Special Assessment. At least 30 days prior to the effective date ofa special assessment, the Board will notify an owner of each lot of the amount of, the budgetary basis for, and the effective date of the special assessment. The special assessment will automatically become effective unless owners of at least majority of the lots disapprove the special assessment by petition or at a meeting of the Association.

9.4. Types of Assessments. There are 5 types of assessments: Regular, Special, Insurance, Individual, and Deficiency.

ed daficiehcyNRegular ¢ g, gnd aMficipated he common area.

a. Maintenance, repair, and replacement, as ne b. Maintenance, repair, and replacement aXnecessary, of the Area of Common Responsibility.

Cc. The Association’s share % of operating the Association, such as telephone, postage, office supplies, rintfig, meeting expenses, and educational opportunities of benefit to the ociation.

Premiums and deductibles on insurance policies and bonds deemed by the Board to be necessary or desirable for the benefit of the Association, including fidelity bonds and directors and officers liability insurance.

j. Contributions to the reserve funds.

24 k. Any other expense which the Association is required by law or the Project Documents to pay, or which in the opinion of the Board is necessary or proper for the operation and maintenance of the Property or for enforcement of the Project Documents.

uired by law or the Project Documents to pay, or which in the opinion of the Board is necessary or proper for the operation and maintenance of the Property or for enforcement of the Project Documents.

9.4.2. Special Assessments. In addition to regular assessments, and subject to the owners' control for assessment increases, the Board may levy one or more special assessments against all lots for the purpose of defraying, in whole or in part, common expenses not anticipated by the annual budget or reserve funds. Special assessments do not require the approval of the owners, except that special assessments for the following purposes myS\ be approved by owners of least a majority of the lots: a. Acquisition of real property, other than the purchase of a foreclosing the Association's lien against the lot.

b. Construction of additional improvements within replacement of original improvements.

9.4.3. Insurance Assessments. The Assocrati expenses that must be included in the may levy an Insurance Assessment - sep premiums and insurance deductibles.

Association must disclose the O.

Association.

9.4.5. Deficiency Assessments. The Board may levy a deficiency assessment against all lots for the purpose of defraying, in whole or in part, the cost of repair or restoration if insurance proceeds or condemnation awards prove insufficient.

25 9.5. Basis & Rate of Assessments. The share of liability for common expenses allocated to each lot is uniform for all lots, regardless of a lot's location or the value and size of the lot or townhome; subject, however, to the exemption for Declarant provided below and in Article 18.

9.6. Declarant Obligation. Declarant's obligation for and exemption from assessments is

size of the lot or townhome; subject, however, to the exemption for Declarant provided below and in Article 18.

9.6. Declarant Obligation. Declarant's obligation for and exemption from assessments is described in Article 18 below. Unless Article 18 creates an affirmative assessment obligation for Declarant, a lot that is owned by Declarant during the Development Period is exempt from mandatory assessment by the Association. Declarant has a right to reimbursement for any assessment paid to the Association by Declarant during the Development Period, but only after the Declarant Contro! Period. This provision may not be construed to prevent Declarant from mg ing a loan or voluntary monetary donation to the Association, provided it is so characterized.

contributions to reserve funds, and a projection for uncollected 4 receivables.

the budget or its summary available to an owner of each lot, although failuyé detailed budget to owners who make written request and pay a 9.8. Shared Area Budget. Pursuant to the terms o Agreement, the Board will participate in preparing and 1 to which the Property is subject. The Board Association's share of the Shared Area Bu combined with the Association regular assessm in 10 days after notice of the assessment is given.

Assessments are delinquent fed by the Association on or before the due date.

Association will establish a reserve fund to ensure the continuous 9.10. Reserve | gt maintenance and/or supervision of all facilities, structures, and perpetual Use Agreement at a level that anticipates the scheduled replacement or major repair of those improvements. These dedicated reserves are maintained and owned jointly by the entities that 26

es the scheduled replacement or major repair of those improvements. These dedicated reserves are maintained and owned jointly by the entities that 26 are subject to the Shared Maintenance & Use Agreement, in the same proportion as each contributes to the annual Shared Area Budget.

9.10.2. Other Common Area Reserves. The Association will endeavor to maintain replacement and repair reserves for the common area improvements of The Villages of Falcon’s Lair that are not covered by the Shared Area Reserves, at a level that anticipates the scheduled replacement or major repair of those improvements.

9.10.3. Operations Reserves. The Association will endeavor to maintain operations insurance policies maintained by the Association.

9.11. Association's Right to Borrow Money. The Association is granted money, subject to the consent of owners of at least a majority of lots Association to repay the borrowed funds from assessments. To assist itf gt Association is granted the right to encumber, mortgage, pledge, ordted in ts oney borrowed or debts incurred, provided that the rights of the lender in the pl¢ y are subordinate and inferior to the rights of the owners hereunder.

agreement executed or made in connection Association will not in any event be entitled “ollect, as interest, a sum greater than the from any circumstances whatsoever, the of Title. Whenever the entire fee title ofa lot is transferred ownership interest), a reserve contribution in the amount of g 6t collected at closing, the buyer remains liable to the Association for the res¢ ’ i til it is received. The parties may not avoid the obligation for the reserve eof a mortgagee's deed of trust lien, a tax lien, or the Association's assessment lien; (3)

he Association for the res¢ ’ i til it is received. The parties may not avoid the obligation for the reserve eof a mortgagee's deed of trust lien, a tax lien, or the Association's assessment lien; (3) conveyance by a mortgagee who acquires title by foreclosure or deed in lieu of foreclosure; (4) transfer to, from, or by the Association; (5) voluntary transfer by an owner to one or more co-owners, or to the owner's spouse, child, or parent; (6) a transfer by a fiduciary in the course of 27 administering a decedent's estate, guardianship, conservatorship, or trust; (7) a conveyance pursuant to a court's order, including a transfer by a bankruptcy trustee; or (8) a disposition by a government or governmental agency.

ARTICLE 10 ASSESSMENT LIEN 10.1. Assessment Lien. Each owner, by accepting an interest in or title to a lot, whether or not it is so expressed in the instrument of conveyance, covenants and agrees to pay assessments to 10.2. Superiority of Assessment Lien. The assessment lien is superior to encumbrances on a lot, except only for (1) real property taxes and agse governmental and taxing authorities, (2) a deed of trust or vendor’s li Declaration, (3) a recorded deed of trust lien securing a loan townhome, and (4) a first or senior purchase money vendor's before the date on which the delinquent assessment became due.

Association's claim against the lot for unpaid assess not extinguish the Association's claim agains sale of a superior lien is liable for assessme, for the owner's pro rata share of ree | wher. The purchaser at the foreclosure from and after the date of the sale, and eNdeficiency as an Association expense.

10.4. Notice and Release 4 Association's lien for assessments is created by

ee | wher. The purchaser at the foreclosure from and after the date of the sale, and eNdeficiency as an Association expense.

10.4. Notice and Release 4 Association's lien for assessments is created by utes record notice and perfection of the lien. No other recorded ffrtfie minutes of a Board meeting.

10.6. Foreclosure of Lien. The assessment lien may be enforced by judicial or nonjudicial foreclosure. A foreclosure must comply with the requirements of applicable law, such as Chapter 28 209 of the Texas Property Code. A nonjudicial foreclosure must be conducted in accordance with the provisions applicable to the exercise of powers of sale as set forth in Section 51.002 of the Texas Property Code, or in any manner permitted by law. In any foreclosure, the owner is required to pay the Association's costs and expenses for the proceedings, including reasonable attorneys’ fees, subject to applicable provisions of the Bylaws and applicable law, such as Chapter 209 of the Texas Property Code. The Association has the power to bid on the lot at foreclosure sale and to acquire, hold, lease, mortgage, and convey same. The Association may not foreclose the assessment lien if the debt consists solely of fines and/or a claim for reimbursement of attorney's fees incurred by the Association.

ARTICLE 11 EFFECT OF NONPAYMENT OF ASSESSMENTS An assessment is delinquent if the Association does not receive paymé assessment's due date. The Association, acting through the Board, is respons to collect delinquent assessments. The Association's exercise of its remedie§ i laws, such as Chapter 209 of the Texas Property Code, and pertinent provssian time to time, the Association may delegate some or all of the céllg

essments. The Association's exercise of its remedie§ i laws, such as Chapter 209 of the Texas Property Code, and pertinent provssian time to time, the Association may delegate some or all of the céllg as the Board in its sole discretion deems appropriate, to the Asgoc\ person for its failure or inability to collect or attem ollect @massessment. The following remedies are in addition to and not in substitution for her rights and remedies which the Association has.

11.1. Interest. Delinquent assessment terest from the due date until paid, at arate to be determined by the Board from ti to exceed the lesser of 18 percent or the maximum permitted by law. If moe tovestablish a rate, the rate is 10 percent per annum.

re subject to reasonable late fees, at a rate to be wes and remedies, anager, an attorney, or .). Suspension of Use and Vote. If an owner's account has been delinquent for at least 30 days, the Association may suspend the right of owners and residents to use common areas and common services during the period of delinquency. The Association may also suspend the right to 29 vote appurtenant to the lot. Suspension does not constitute a waiver or discharge of the owner's obligation to pay assessments.

11.6. Money Judgment. The Association may file suit seeking a money judgment against an owner delinquent in the payment of assessments, without foreclosing or waiving the Association's lien for assessments.

11.7. Notice to Mortgagee. The Association may notify and communicate with the holder of any lien against a lot regarding the owner's default in payment of assessments,

ciation's lien for assessments.

11.7. Notice to Mortgagee. The Association may notify and communicate with the holder of any lien against a lot regarding the owner's default in payment of assessments, 11.8. Foreclosure of Assessment Lien. As provided by this Declaration, the Assocjation May foreclose its lien against the lot by judicial or nonjudicial means.

ARTICLE 12 ENFORCING THE DOCUMENTS 12.1. Notice and Hearing. Before the Association may e€ a violation of the Project Documents or damage to the Property, written notice and an opportunity for a hearing, according to the s and procedures in the Code. Notices are also of attorneys fees incurred by the Association.

12.2. Remedies. The remedies provided in are cumulative and not exclusive. In addition 3. Suspension. The Association may suspend the right of owners and residents to on areas for any period during which the owner or resident, or the owner or resident's family, guests, employees, agents, or contractors violate the Project Documents. A suspension does not constitute a waiver or discharge of the owner's obligations under the Project Documents.

30 12.2.4. Self-Help. The Association has the right to enter any part of the Property, including lots, to abate or remove, using force as may reasonably be necessary, any improvement, thing, animal, person, vehicle, or condition that violates the Project Documents.

In exercising this right, the Board is not trespassing and is not liable for damages related to the abatement. The Board may levy its costs of abatement against the lot and owner as an individual assessment. The Board will make reasonable efforts to give the violating owner

or damages related to the abatement. The Board may levy its costs of abatement against the lot and owner as an individual assessment. The Board will make reasonable efforts to give the violating owner prior notice of its intent to exercise self-help. The notice may be given in any manner likely to be received by the owner. Prior notice is not required (1) in the case of emergencies, (2) to remove violative signs, (3) to remove violative debris, or (4) to remove any other violative item or to abate any other violative condition that is easily removed or abated and considered a nuisance, dangerous, or an eyesore to the neighborhood.

12.2.5. Suit. Failure to comply with the Project Documents will be grounds f to recover damages or for injunctive relief to cause any such violation to be rg Prior to commencing any legal proceeding, the Association will give reasonable notice and an opportunity to cure the violation.

particular circumstances (1) the Association's position ighd{sufficien Ong to justify taking any or further action; (2) the provision being enforced is o be construed as inconsistent with applicable law; (3) although a technical violation may€Ri ot of such a material nature as to be objectionable to a reasonable person or to justi that enforcement is not in the Association's 66 reasonable criteria.

owner has the right to enforce all restrictions, conditions, covenants, liens, anf ¢hacges hereafter imposed by the Project Documents.

Failure by the Association orb g enforce a provision of the Project Documents is not a waiver of the right to do's f the Association does waive the right to enforce a provision, that waiver does nd ‘Association's right to enforce any other part of the Project

Project Documents is not a waiver of the right to do's f the Association does waive the right to enforce a provision, that waiver does nd ‘Association's right to enforce any other part of the Project Documents at any futur bficer, director, or member of the Association is liable to any owner orQithts ponsible for the violation. If legal assistance is obtained to enforce any provjai OPrajedst Documents, or in any legal proceeding (whether or not suit is brought) for necessary*easts incurred by it in such action, including reasonable attorneys’ fees.

31 ARTICLE 13 MAINTENANCE AND REPAIR OBLIGATIONS 13.1. Overview. Generally, the Association maintains the common areas, and the owner maintains his lot and townhome. Ifan owner fails to maintain his lot, the Association may perform the work at the owner's expense. Interestingly, this Declaration permits owners to delegate some of their responsibilities to the Association. For example, during one 20-year span the owners may want the Association to handle the periodic repainting of exterior trim on all the townhomes, which otherwise is the responsibility of each lot owner. During the next 20 years, the owners may prefer to handle repainting on an individual basis. They have that option under this Declaration's cg of "areas of common responsibility,” as described below.

13.2. Association Maintains. The Association's maintenance obligations wi when and how the Board deems appropriate. The Association maintains, repairg a common expense, the portions of the Property listed below, regardless of w on lots or common areas.

a. The common areas.

b. The Areas of Common Responsibility, if any.

ed below, regardless of w on lots or common areas.

a. The common areas.

b. The Areas of Common Responsibility, if any.

area, such as a Jot owned by the Associg#t sibility. The Association, acting through its members only, ate, from time to time, portions of lots or townhomes as Areas 4.1. Change in Designation. The Association may, from time to time, change or Ate the designation of components of lots or townhomes as Areas of Common Responsibility. Because the designation is subject to change, the Association will maintain at all times a dated list of the components of lots or townhomes that are maintained as Areas of Common Responsibility for distribution to owners and prospective purchasers. Additions, 32 deletions, or changes in designation must be (1) approved by owners of at least a majority of the lots, (2) published and distributed to an owner of each lot, and (3) reflected in the Association's annual budget and reserve funds.

13.3.2. Initial Designation. Although future designations need not be recorded, the initial designation of components of lots and townhomes as Areas of Common Responsibility is stated here. On the date this Declaration is recorded, the following components of all lots are maintained by the Association as Areas of Common Responsibility: grass lawns outside of fenced yards will be periodically mowed, edged, and fertilized by the Association as a common expense.

13.4. Owner Responsibility. Every owner has the following responsibilities andob euieds during which the Association may be lax about enforcing architectural or during periods in which the Area of Common Responsibility is limited.

ery owner has the following responsibilities andob euieds during which the Association may be lax about enforcing architectural or during periods in which the Area of Common Responsibility is limited.

a. The exterior of each townhome must’ b. If an owner desires to up aluminum windows wit Addws, the decision to change a standard g must be approved by the owners of more he townhome building, in addition to the eafter, the new building standard will apply to he component, as needed, on other townhomes in the the exteriors of the townhomes must conform to the original wv. For example, if the building was constructed with bronze colored frames, replacement windows with white frames may not be used unless rames have been approved as the new standard for the townhome ding. Similarly, the siding on one townhome may not be replaced with wood, while another is replaced with vinyl, and a third is replaced with cement fiberboard.

d. Ideally, all the townhome buildings in the Property will have the same architectural requirements, without building-to-building individuality. Nothing in this Section may be construed to prevent the Association from requiring Go Go uniform architectural standards for the entire Property. This Section may not be construed as authority for one building to "do its own thing."

13.4.2. Townhome Foundation. Each owner ofa townhome lot is solely responsible for the maintenance and repair of the foundation on his lot. However, if a licensed structural engineer determines that the failure to repair the foundation under one townhome may adversely affect one or more other townhomes in the building, then the cost of the foundation

a licensed structural engineer determines that the failure to repair the foundation under one townhome may adversely affect one or more other townhomes in the building, then the cost of the foundation repair will be divided by the number of townhomes in the building, and the owner of each of those townhomes will pay an equal share. If an owner fails or refuses to pay his share of costs of repair of the foundation, the owner advancing monies has a right to file a claim of ligt for the monies advanced in the county's real property records, and has the right to foreclo$e the the building, then the cost of the structural roof work will be divided by the numk omes in the building, and the owner of each townhome will pay an equaf‘share. If a¢r fails or refuses to pay his share of costs of repair of the roof, the owner ad ing monies has a right to file a claim of lien for the monies advanced in the county erty records, and has the right to foreclose the lien as if it were a mechanj's lig of an owner to contribution from another owner under this Section is oF e land and passes to the owner's successors in title.

with the owners of the oth dy Hephes ttt building to effect the purposes and intent of the 2 preceding sections of «homjeNoundations and townhome roofs. If the owners of ding’cannot cooperate, they may ask the Association to ydrea designated as an Area of Common Responsibility. Maintenance 4 maintenance, repair as needed, and replacement as needed. Each owner gintain his lot's improvements at a level, to a standard, and with an appearance NenSurate with the neighborhood. Specifically, each owner must repair and replace , deteriorated, and unattractive materials, and must regularly repaint all painted

a standard, and with an appearance NenSurate with the neighborhood. Specifically, each owner must repair and replace , deteriorated, and unattractive materials, and must regularly repaint all painted 13.4.6. Avoid Damage. An owner may not do any work or to fail to do any work which, in the reasonable opinion of the Board, would materially jeopardize the soundness and safety 34 of the Property, reduce the value of the Property, adversely affect the appearance of the Property, or impair any easement relating to the Property.

13.4.7. Responsible for Damage. An owner is responsible for his own willful or negligent acts and those of his or the resident's family, guests, agents, employees, or contractors when those acts necessitate maintenance, repair, or replacement to the common areas, the Area of Common Responsibility, or the property of another owner.

13. 5. Owner' s Dela t in Maintenance. if the Board determines whe an owner has failed to the owner fails or refuses to timely perform the maintenance, the Association ma expense, which is an individual assessment against the owner and his lot. In gas however, the Board's responsibility to give the owner written notice may bg prohibition is warranted by the possibility th because of its duty to maintain the Area of Cot?

13.7. Concrete. Minor crac sidewalks, driveways, and patio Soe ,arg ihevisatle as a result of the natural movement of soil (expansion and contraction), shri ; ring of the concrete, and settling of the building, ¢ consideration without structural significance. The e sheetrock, regardless of the source of damage and the availability of is provided for the benefit of the Association and is warranted by the

ing, ¢ consideration without structural significance. The e sheetrock, regardless of the source of damage and the availability of is provided for the benefit of the Association and is warranted by the Wg interior sheetrock work and the possibility that the owner may not be e)quality or appearance of spot repairs. If the Association receives insurance the damagédtdwnhome is entitled to the proceeds in exchange for identification of the damage and a release from future claims for the same damage.

35 13.9. Mold. In the era in which this Declaration is written, the public and the insurance industry have a heightened awareness of and sensitivity to anything pertaining to mold. Because many insurance policies do not cover damages related to mold, owners should be proactive in identifying and removing visible surface mold, and in identifying and repairing sources of water leaks in the townhome. To discourage mold in his townhome, each resident should maintain an inside humidity level under 60 percent. For more information about mold, the owner should consult a reliable source, such as the U. S. Environmental Protection Agency.

13.10. Party Walls. A townhome wall located on or near the dividing line between 2 lots and intended to benefit both lots constitutes a Party Wall and, to the extent not inconsistent With the provisions of this Section, is subject to the general rules of law regarding party walls andjiak for property damage due to negligence, willful acts, or omissions.

13.10.1. Encroachments & Easement. Ifthe Party Wall is on one¢ to an error in construction, the Party Wall is nevertheless deemed to be gr purposes of this Section. Each townhome sharing a Party Wall is su}

1. Encroachments & Easement. Ifthe Party Wall is on one¢ to an error in construction, the Party Wall is nevertheless deemed to be gr purposes of this Section. Each townhome sharing a Party Wall is su} the existence and continuance of any encroachment by construction, repair, shifting, settlement, or movement in ay the encroachment may remain undisturbed as long as the Pa to a reciprocal easement for the maintenance, repair, repla Party Wall.

13.10.2. Right to Repair. Ifthe PartyWalNs the owner of either lot may repair or a t sans owners of both lots, their successors an HI (lo e right to the full use of the repaired or rebuilt Party Wall.

he Party Wall, so that ds. Each lot is subject reconstruction of the 13.10.3. owners of the adjoining lots share equally the costs of repair, reconstruq ar Pepha ént of the Party Wall, subject to the right of one owner to call for large Q fhom the other under any rule of law regarding liability for negligence or wil g gmissions. If an owner is responsible for damage to or e€ dr refuses to pay his share of costs of repair or replacement of the Party Wall, t Ren) } advanced i sOunty’s Real Property Records, and has the right to foreclose the lien as if it g é fanny n. The right of an owner to contribution from another owner under this appurtehdnt to the land and passes to the owner's successors in title.

Alterations. The owner ofa lot sharing a Party Wall may not cut openings Wall or alter or change the Party Wall in any manner that affects the use, , or appearance of the Party Wall to the adjoining townhome. Unless both owners reach a mutual decision to the contrary, the Party Wall will always remain in the same location

er that affects the use, , or appearance of the Party Wall to the adjoining townhome. Unless both owners reach a mutual decision to the contrary, the Party Wall will always remain in the same location as where initially erected.

36 ARTICLE 14 INSURANCE 14.1. General Provisions. All insurance affecting the Property is governed by the provisions of this Article, with which the Board will make every reasonable effort to comply. Insurance policies and bonds obtained and maintained by the Association must be issued by responsible insurance companies authorized to do business in the State of Texas. The Association must be the named insured on all policies obtained by the Association. Each owner irrevocably appoints the Association, acting through its Board, as his trustee to negotiate, receive, administer, and distribute or allowed to expire, by either the insurer or the insured.

14.1.2. Deductibles. An insurance policy obtained b individually owned fownhonres, and valid reaso townhomes. This Article allocates insuranee owners based on the following rationale.

multiple townhomes in a to and (4) to maintain the peri his townhome. In the evento stl Leas eS) lrabyities and policies will control.

rapnée by Association. To the extent it is reasonably available, the foun the Property, as originally constructed, and as modified over time by changes in replacement materials and systems that are typical for the market and era.

14.3.1. Common Area. The Association will insure, as a common expense: 3] a. Insurable improvements on the common area.

b. Insurable improvements in the Area of Common Responsibility.

c. The improvements on any townhome lot owned by the Association.

CCRs-v6 07Jun06 RD6.7.06 a. Insurable improvements on the common area.

b. Insurable improvements in the Area of Common Responsibility.

c. The improvements on any townhome lot owned by the Association.

d. Insurable property owned by the Association including, if any, records, furniture, fixtures, equipment, and supplies.

14.3.2. Townhomes Partially Insured by Association. In addition to insurin property owned or maintained by the Association, the Association will maintain insurance on the following components of the townhome buildings to the Building 14.3.3. Not Insured b other component of a town (nSurance by Owner. The owner of each townhome must obtain and maintain a $ iNSurance policy on the townhome covering, at a minimum, the components listed-relow, at 1éq he Building Standard. On the date of this Declaration, homeowners policies ition walls, countertops, cabinets, furr downs, interior doors, and fixtures within the townhome.

b. Finish materials on walls, floors, and ceilings, such as carpet, paint, tile, mirror, and wallpaper.

c. Window treatments, lighting fixtures, tub enclosures, and decorative hardware.

d. Appliances and plumbing fixtures.

e. Betterments and improvements to the components of the townhome building that are insured by the Association, but only to the level of Building Standard, such as an art glass window or a custom skylight.

f. All utility systems and equipment serving the townhome, including water_ftea conditioning and heating equipment, electric wiring, ducts, and vents.

responsible for replacing or repairing his property (furniture, clo event of a loss. This Section is advisory only and may not be cong that addresses insurance responsibilities between a landlord and ¥

esponsible for replacing or repairing his property (furniture, clo event of a loss. This Section is advisory only and may not be cong that addresses insurance responsibilities between a landlord and ¥ 14.6. Variations in Property Insurance. Notwit allocation of insurance responsibilities, the Associatigy of policies and coverages customarily availa i acting through its Board, is hereby authori components of the townhomes that are designated Article, the Board minimum amounté insurance is dee ing Coverages. Ifat the time of a loss under a policy maintained by the 39 14.6.3. Gap Construction. If it is not clear to the Association whether a particular component of the Property is required by this Article to be insured by the owner or by the Association, the component is hereby deemed to be the responsibility of the Association.

14.6.4. Betterments and Improvements. Ifthe Association provides property insurance on the entire individual townhome, the owner will give the Association a written report of all structural changes, additions, betterments, or improvements to his townhome, and any other information the Board may require to maintain adequate levels of insurance coverage. Each owner will comply with reasonable requests by the Board for periodic inspection of the townhome for purposes of insurance appraisal.

14.7. Liability Insurance by Association. The Association will maintain a com operation, maintenance, or use of the common areas. If the policy does not of interest provision, it should contain an endorsement to preclude the i insurg claim because of negligent acts of the Association or other owners.

obtain liability insurance over the Area of Common Responsibi

t provision, it should contain an endorsement to preclude the i insurg claim because of negligent acts of the Association or other owners.

obtain liability insurance over the Area of Common Responsibi damage resulting from the maintenance of the Area of Commo sociation may and property 14.8. Liability Insurance by Owner. Notwit Declaration, to the extent permitted by applicable law, owner is liable for damage to the hereby required to obtain and maintain sen occurrences within his townhome, in amounts the property of others in the Property and t damage is caused wilfully and ime asad ommon Responsibility, whether such ion or negligence.

14.9. Directors & Officers ab extent it is reasonably available, the Association will maintain directors and of fitg abi surance, errors and omissions insurance, indemnity in those capacities.

14.10.

bonds deemed b9 to be necessary or desirable for the benefit of the Association, including Owner's General Responsibility for Insurance. Each owner, at his expense, will maintain nall i insurance coverages required of owners by the Association pursuant to this Article.

Each owner will provide the Association with proof or a certificate of insurance on request by the Association from time to time. If an owner fails to maintain required insurance, or to provide the 40 Association with proof of same, the Board may obtain insurance on behalf of the owner who will be obligated for the cost as an individual assessment. The Board may establish additional minimum insurance requirements, including types and minimum amounts of coverage, to be individually obtained and maintained by owners if the insurance is deemed necessary or desirable by the Board

nal minimum insurance requirements, including types and minimum amounts of coverage, to be individually obtained and maintained by owners if the insurance is deemed necessary or desirable by the Board to reduce potential risks to the Association or other owners. Each owner and resident is solely responsible for insuring his personal property in his townhome and on his lot, including furnishings, vehicles, and stored items. If the Association is unable or unwilling to insure the components of the townhome building described in Section 14.3.2 above, then each owner will obtain and maintain property insurance on all insurable improvements on his townhome lot, in an amount sufficient to cover 100 percent of the replacement cost of any repair or reconstruction in event of damage or destruction from any insured hazard.

ARTICLE 15 MORTGAGEE PROTECTION 15.1. Introduction. This Article establishes certain standards for th tgagees, as defined below.

ortgage Corporation al National Mortgage ffairs (VA), singly or may not be construed as a limitation t the Property is approved by any collectively. The use of this term and these institu on an owner's financing options nor as a represe 15.1.2. "Mortgagee” means a_ho insuret, or guarantor of a purchase money mortgage secured by a recorded sen d of trust lien against a lot, or any renewal, modification, or refinanci e represented by a mortgag¢ $ 15.1.3. "Eligib ygee” means a Mortgagee that submits to the Association a street address of the mortgage? lot, and the types of actions for which the Eligible Mortgagce requests timely oe single notice per lot will be valid so long as the Eligible Mortgagee gntte sot. The Board will maintain this information.

15.2.2. Termination. An action to terminate the legal status of the Property after

e notice per lot will be valid so long as the Eligible Mortgagee gntte sot. The Board will maintain this information.

15.2.2. Termination. An action to terminate the legal status of the Property after substantial destruction or condemnation must be approved by at least 51 percent of Eligible 4] Mortgagees, in addition to the required consents of owners. An action to terminate the legal status for reasons other than substantial destruction or condemnation must be approved by at least two-thirds of Eligible Mortgagees.

15.2.3. Inspection of Books. Mortgagees may inspect the Association's books and records, including the Project Documents, by appointment, during normal business hours.

15.2.4. Financial Statements. If a Mortgagee so requests, the Association will give the Mortgagee an audited statement for the preceding fiscal year within 120 days after the Association's fiscal year-end. A Mortgagee may have an audited statement prepared at it expense.

lien.

owners or Mortgagees, may amend this Article and other pro’ s e Project Documents, as necessary, to meet the requirements of th This Article is supplemental to, not a substitution for, any other pro of the Project Documents. In case of conflict, this Article controls.

15.2.7. Attend Meetings. A rept address any meeting which an owner me insurance requirements conflict with other ins . This Article may not be construed to require the Association to neater certain the existence and identify of a Mortgagee on a lot. Any duty of the o a Mortgagee is conclusively satisfied if performed for Mortgagees known to ation, without regard to other holders of liens on lots. The Association may rely on ation provided by owners and mortgagees.

a Mortgagee is conclusively satisfied if performed for Mortgagees known to ation, without regard to other holders of liens on lots. The Association may rely on ation provided by owners and mortgagees.

15.3.2. Communications with Mortgagee. If the Project Documents or public law require the consent of Mortgagees for an act, decision, or amendment by the Association, the 42 approval of a Mortgagee is implied when the Mortgagee fails to respond within 30 days after receiving the Association's written request for approval of a proposed amendment, provided the Association's request was delivered by certified or registered mail, return receipt requested.

ARTICLE 16 AMENDMENTS 16.1. Consents Required. As permitted by this Declaration, certain amendments of this Declaration may be executed by Declarant alone, or by the Board alone. Otherwise, amendments to this Declaration must be approved by owners of at least a majority of the lots. Approval of owners does not require that the amendment be signed by the consenting owners, or that consent executed and acknowledged by the approving owners.

16.2. Method of Amendment. For an amendment that requires the approval Declaration may be amended by any method selected t by the Board from timg directors and, if required, Eligible are Dallas County, Texas, except as modified by t Association. No amendment written and acknowledged co Section may not be amend is Declaration. The amendment must be approved by owners of Upon a merger or consolidation of the Association with another ghts, and obligations of another association may, by operation of law, be ights, and obligations of the Association as a surviving association pursuant

or consolidation of the Association with another ghts, and obligations of another association may, by operation of law, be ights, and obligations of the Association as a surviving association pursuant any other Property under its jurisdiction. No merger or consolidation, however, will effect a revocation, change, or addition to the covenants established by this Declaration within the Property.

43 16.6. Termination. Termination of the terms of this Declaration and the status of the Property as a planned unit development are according to the following provisions. In the event of substantially total damage, destruction, or public condemnation of the Property, an amendment to terminate must be approved by owners of at least two-thirds of the lots. In the event of public condemnation of the entire Property, an amendment to terminate may be executed by the Board without a vote of owners. In all other circumstances, an amendment to terminate must be approved by owners of at least 80 percent of the lots.

16.7. Condemnation. In any proceeding, negotiation, settlement, or agreement concerning condemnation of the common area, the Association will be the exclusive representative g the Association's reserve funds.

ARTICLE 17 DISPUTE RESOLUTION 9 encourage.thé amicable resolution of disputes involving the Property and to avoid the emotional aad financial costs of litigation ifat all as hereafter defined. As used in this Article ONY t following specified meanings: qs Telating to the design, construction, or maintenance of the Property.

Slaimant" means any Party having a Claim against any other Party.

. "Exempt Claims" means the following claims or actions, which are exempt from

e design, construction, or maintenance of the Property.

Slaimant" means any Party having a Claim against any other Party.

. "Exempt Claims" means the following claims or actions, which are exempt from a. The Association's claim for assessments, and any action by the Association to collect assessments.

44 b. An action by a Party to obtain a temporary restraining order or equivalent emergency equitable relief, and such other ancillary relief as the court deems necessary to maintain the status quo and preserve the Party's ability to enforce the provisions of this Declaration.

c. Enforcement of the easements, architectural control, maintenance, and use restrictions of this Declaration.

d. A suit to which an applicable statute of limitations would expire within the -tecation, persons involved, and Respondent's role in the Claim; (2) the basis of the Slatg (i.e., the provision of the Project what Claimant wants Respondent 17.4. Negotiation. Claimant and Res ake every reasonable effort to meet in person to resolve the Claim by good yon Within 60 days after Respondent's receipt of the Notice, Respondent and Claima mutually-acceptable place and time to discuss the Claim. Atsuch meeting orat representatives will have ful inspecting the property. If B Respondent and Responde complete corrective actig the Claim tome€diation within the 30-day period, Claimant is deemed to have waived the Claim, and Respondent is released and discharged from any and all liability to Claimant on account of the Claim.

45 17.6. Termination of Mediation. If the Parties do not settle the Claim within 30 days after

and all liability to Claimant on account of the Claim.

45 17.6. Termination of Mediation. If the Parties do not settle the Claim within 30 days after submission to mediation, or within a time deemed reasonable by the mediator, the mediator will issue a notice of termination of the mediation proceedings indicating that the Parties are at an impasse and the date that mediation was terminated. Thereafter, Claimant may file suit or initiate administrative proceedings on the Claim, as appropriate.

17.7. Allocation of Costs. Except as otherwise provided in this Section, each Party bears all of its own costs incurred prior to and during the proceedings described in the Notice, Negotiation, and Mediation sections above, including its attorneys fees. Respondent and Claimant will equally divide all expenses and fees charged by the mediator.

jability to~perSons who are not party to it it to the procedures of this Article.

on account of the Claim does not release Respondent fr¢ Claimant's Claim. A Party having an Exempt Claim may 17.10. Litigation Approval & § resolution and discourage the use of costly an administrative proceeding by the Associatio interest in or title to a lot, whethg it is) s expressed in the instrument of conveyance, covenants and agrees to be bound by é This Section may not be amended without the The Association may not initiate any judicial or ut the prior approval of owners of at least a majority of the 17.10.1.

17.10.2. Higher Approval of Certain Suits. Also, the Association may not initiate any judicial or administrative proceeding against Declarant, a builder, Association officers and 46

ain Suits. Also, the Association may not initiate any judicial or administrative proceeding against Declarant, a builder, Association officers and 46 directors, or the managing agent of the Association without the approval of owners representing at least 75 percent of the lots.

17.10.3. Funding Litigation. Except in the case of a temporary restraining order or equivalent emergency equitable relief when circumstances do not provide sufficient time to levy a special assessment, the Association must levy a special assessment to fund the estimated costs of litigation prior to initiating a judicial or administrative proceeding. The Association may not use its annual operating income, reserve funds, or savings to fund litigation, unless the Association's annual budget or a savings account was established and funded from its inception as a litigation reserve fund.

17.10.4. Settlement. The Board, on behalf of the Association and v construction, such as: 17.11.1. RCLA. Under Chapter 27 of the Texaky Construction Liability Act, if an owner has a congpMajnt concter owner must provide the notice required by Ch; Builder or contractor by certified mail, dcg eqhésted, not later than the 60th day before the date owner files suit to recove Ourt of law or initiate arbitration. The notice must refer to Chapter 27 of the 4, Code and must describe the alleged construction defect. If requested by, r contractor, the owner must provide the Builder or contractor an opp ePuni apters 401 et. seq. of the Texas Property Code, the mission Act (TRCCA), alleged construction defects in $, duplexes, and detached single family houses are subject to ARTICLE 18 DECLARANT RIGHTS

ePuni apters 401 et. seq. of the Texas Property Code, the mission Act (TRCCA), alleged construction defects in $, duplexes, and detached single family houses are subject to ARTICLE 18 DECLARANT RIGHTS al. This Article gives Declarant certain rights during the Development Period and the Declar ontrol Period to ensure a complete and orderly buildout and sellout of the Property, which is ultimately for the benefit and protection of owners and mortgagees. Notwithstanding other provisions of the Project Documents to the contrary, nothing contained therein may be construed to, nor may any mortgagee, other owner, or the Association, prevent or interfere with the rights 47 contained in this Article which Declarant hereby reserves exclusively unto itself and its successors and assigns. In case of conflict between this Article and any other Project Document, this Article controls. This Article may not be amended without the prior written consent of Declarant. The terms and provisions of this Article must be construed liberally to give effect to Declarant's intent to protect Declarant's interests in the Property.

18.2. Definitions. As used in this Article and elsewhere in the Project Documents, the following words and phrases have the following specified meanings: nA f the Declarant Control Period will be from the date this Declaration is rgcofded foy’a trexfmum period not to exceed the earlier of (1) seven years from date this De recorded, or (2) four months after title to 85 percent of the lots that conveyed to owners other than Builders.

18.2.2. "Declarant Control Period" means that period of time pind idk Dyclarant 18.2.3. "Development Period" means Jig Declaration is recorded, during which

hat conveyed to owners other than Builders.

18.2.2. "Declarant Control Period" means that period of time pind idk Dyclarant 18.2.3. "Development Period" means Jig Declaration is recorded, during which such as rights relating to development, co The Development Period is for a term-o 1od is different from and longer than the Declarant Control Period. A sayAeyminate the Development Period at any time by dh Reservations - Governance. Declarant reserves the following powers, rights, and*ditieSduring the Declarant Control Period: ( an a of Association. Declarant will incorporate the Association as a gons. During the Declarant Control Period, Declarant may appoint, remove, any officer or director of the Association, none of whom need be members or unilateral right to remove and replace officers and directors applies to officers and directors who were elected or designated by lot owners other than Declarant, as well as to Declarant's appointees.

48 18.3.3. Weighted Votes. During the Declarant Control Period, the vote appurtenant to each lot owned by Declarant is weighted 3 times that of the vote appurtenant to a lot owned by another owner. In other words, during the Declarant Control Period, Declarant may cast the equivalent of 3 votes for each lot owned by Declarant on any issue before the Association.

On termination of the Declarant Control Period and thereafter, the vote appurtenant to Declarant's lots is weighted uniformly with all other votes.

18.3.4. Association Meetings. During the Declarant Control Period, meetings of the Association may be held at a location, date, and time that is convenient to Declarant, whether or not it is mutually convenient for the owners.

gs. During the Declarant Control Period, meetings of the Association may be held at a location, date, and time that is convenient to Declarant, whether or not it is mutually convenient for the owners.

18.3.5. Transition Meeting. Within 60 days after the end of the Decla members of the Association for the purpose of electing, by vote of the owne Board. Written notice of the transition meeting must be given to an owp powers, rights, and duties during the Declarant Control P 18.4.1. Association Budget. in éclarant Control Period, the Declarant-appointed Board will sped budget for the Property as a fully YO1Sa developed, fully phased, full constru Occupied residential community with a level of services and maintenance for similar types of developments in the general area of the Propert 5. Enhancements. During the Declarant Control and Development Periods, DecTarafit - solely at Declarant's discretion - may voluntarily provide enhancements for the Property, such as higher levels of maintenance, management, insurance, seasonal color in landscaping, and recreational personnel. Such enhancements are not included in the 49 Association's annual operating budget or, alternatively, if included are identified as Declarant enhancements.

18.4.4. Declarant Assessments & Reserves. During the Declarant Control Period, any real property owned by Declarant is not subject to assessment by the Association. During the Declarant Control Period, Declarant is not required to make contributions to the Association's reserve funds for the lots owned by Declarant. Declarant's obligation to fund the difference in the Association's operating expenses may not be construed to require Declarant to fund reserve accounts.

reserve funds for the lots owned by Declarant. Declarant's obligation to fund the difference in the Association's operating expenses may not be construed to require Declarant to fund reserve accounts.

when the Association first levtes regular assessments against the lars, Priog Declarant will be responsible for all operating expenses of the Associgttor or in reat, ena: in phases.

provided, however, that a pla arant's right to have the Property platted, or to ears and does not require that Declarant own land | property by subjecting it to the Declaration and the jurisdiction of the Association sfdjAg a supplement or an amendment of this Declaration, executed by Declarant, in the Operty Records of Dallas County, Texas. The supplement or amendment of annexation must include a description of the additional real property or a reference to the recorded plat that describes the additional real property. Declarant’s right to annex land is for a term of 50 years and does not require that Declarant own land described in Exhibit A at the time or times Declarant exercises its right of annexation.

18.5.3. Withdrawal. During the Development Period, Declarant may withdraw real property from the Property and the effect of this Declaration (1) if the owner of the withdrawn property consents to the withdrawal, and (2) if the withdrawal does not significantly and detrimentally change the appearance, character, operation, or use of the Property.

18.5.4. Different Standards. Declarant has the right (1) to establish specifications for the construction of all initial improvements in the Property, (2) to establish dif specifications for each neighborhood within the Property, and (3) to grant variances Or V

stablish specifications for the construction of all initial improvements in the Property, (2) to establish dif specifications for each neighborhood within the Property, and (3) to grant variances Or V from community-wide standards to certain neighborhoods of the Property.

18.5.5. Changes in Development Plan. Declarant may modify the init plan to respond to perceived or actual changes and opportunities in the marks the sizes, dimensions, and configurations of lots and townhome size; (c) change the building setback requiremd other feature of the Property.

from time to time, but is not obligated Article 5 and this Article to (1) an archt (2) a committee comprised or archite members of the Association., Any, scope of delegated respons) My 6r other persons who may or may not be on must be in writing and must specify the étural contro) over vacant lots in the Property. Neither the >ctors, nor a committee appointed by the Association or Board To add real property to the Property.

To withdraw real property from the Property.

To create lots, easements, and common areas within the Property.

To create Areas of Common Responsibility.

51 €. To subdivide, combine, or reconfigure lots.

d. To convert lots into common areas.

f. To allocate the use of certain common areas to specified lots as limited common areas.

g. To modify the construction and use restrictions of this Declaration.

h. To modify the Maintenance Responsibility Chart at Exhibit B.

i. To merge the Association with another property owners association.

iP To comply with requirements of an underwriting lender.

k. To comply with the requirements of the Shared Maintenance & Use Agreement lL. To resolve conflicts, clarify ambiguities, and to correct misstatements, errérg, or

irements of an underwriting lender.

k. To comply with the requirements of the Shared Maintenance & Use Agreement lL. To resolve conflicts, clarify ambiguities, and to correct misstatements, errérg, or omissions in the Project Documents.

m. To enable any reputable title insurance company to issue title insurance on the lots.

n. To enable an institutional or governmenta! lender to make or p loans on the lots.

0. To change the name or entity of Declarant.

p. To change the name of the addition in which the?

q. To change the name of the Association.

q. For any other purpose, provided the amendy 18.5.8. Completion. During the Developm owned by Declarant; and (3) an easem the common area, Area of Common R} Ae Pp iy test, redesign, copfest,and rdlgéate any structure, improvement, or condition that may exist on any portion of t Aro} erty, including the lots, and a perpetual nonexclusive easement of ral. t én may not be construed to create a duty for Declarant, a Builder, or the Association.

18.5.10. Promotion. During the Development Period, Declarant reserves for itself and for Builders an easement and right to place or install signs, banners, flags, display lighting, potted plants, exterior decorative items, seasonal decorations, temporary window treatments, 52 and seasonal landscaping on the Property, including items and locations that are prohibited to other owners and residents, for purposes of promoting, identifying, and marketing the Property and/or Declarant's or Builder’s houses, lots, developments, or other products located outside the Property. Declarant reserves an easement and right to maintain, relocate, replace, or remove the same from time to time within the Property. Declarant also reserves the right to

ts located outside the Property. Declarant reserves an easement and right to maintain, relocate, replace, or remove the same from time to time within the Property. Declarant also reserves the right to sponsor marketing events - such as open houses, MLS tours, and brokers parties - at the Property to promote the sale of lots. During the Development Period, Declarant also reserves (1) the right to permit Builders to place signs and promotional materials on the Property and (2) the right to exempt Builders from the sign restriction in this Declaration.

18.5.11. Offices. During the Development Period, Declarant reserves forjtse for Builders the right to use townhomes owned or leased a Declarant or Builders® adapt them to the uses permitted herein.

18.5.12. Access. During the Development Peri easement and right of ingress and egress in constructing, maintaining, managing, and marketingN for discharging Declarant's obligations under th) provide a reasonable means of access es befb tis iinaueh any existing or future gate that rositicls vehicular access to the We Additional Land in connection with Builders, including the right to require /or on certain days. This provision may not that the gate be kept open during ¢ cerf be construed as an obligatig , in, on, under, and through the Property for utilities, apy for the proper development and operation of the Property.

make changes in and additions to the easements on any lot, as efficiently or economically install utilities or other improvements.

Utilities mayTtachyde are not limited to, water, sewer, trash removal, electricity, gas, Cable, internet service, and security. To exercise this right as to land that 4 of the Property or not owned by Declarant, Declarant must have the prior of the land owner.

permits, licenses, and‘¢

as, Cable, internet service, and security. To exercise this right as to land that 4 of the Property or not owned by Declarant, Declarant must have the prior of the land owner.

permits, licenses, and‘¢ roads, and other purpose Assessments. For the duration of the Development Period, any lot owned by Beelirant is not subject to mandatory assessment by the Association until the date Declarant transfers title to an owner other than Declarant. If Declarant owns a lot on the expiration or termination of the Development Period, from that day forward Declarant is liable for assessments on each lot owned by Declarant in the same manner as any owner.

53 18.6. Different Standards. Declarant has the right (1) to establish specifications for the construction of all initial improvements in the Property, (2) to establish different specifications for each phase of the Property, and (3) to grant variances or waivers from community-wide standards to certain phases of the Property. That Declarant includes Builders in the development of specifications for a particular phase of the Property does not entitle those Builders to approve or disapprove specifications for other portions of the Property.

18.7. Relationship with Builders. This Section applies in the event Declarant sells lots to Builders. Declarant reserves the following rights, exercisable at Declarant's sole discretion, at any time during the Development Period: 18.7.1. Builders. Declarant does not intend to construct townhomes on the lo Declarant intends to sell the lots to one or more Builders to improve the lots w) to be sold and occupied. From time to time, Declarant may invite a Buildé exercise of any, some, or all of its easements and rights, without any formal

s to one or more Builders to improve the lots w) to be sold and occupied. From time to time, Declarant may invite a Buildé exercise of any, some, or all of its easements and rights, without any formal consent of Declarant and Builder. Notwithstanding such sharing, a Bj a Successor Declarant, or assume the duties and liabilities of Deeta 18.7.2. Builder Obligations. During the Decks Control Period only, Declarant has the right but not the duty (1) to reduce or waive th to exempt a Builder from any or all Mabilytig ansfer-related fees charged by the Association or its manager, provided th ge } i any Builder who owns a lot is liable_f wf deviates substantially from the pre- egnsnasied plan and elevation. Examples of 2 deviation include (1) reversing a garage from rear entry to front entry, or vise versa, (2) reducing the size of the townhome by more than 15 percent, (3) reducing the amount of masonry exterior material by more than 15 percent, (4) changing the style of the front 34 elevation, such as from Cape Cod to Spanish, and (5) replacing a garage with a porte cochere or carport.

18.7.5. Individual Lot Application. Builder must apply to the Architectural Reviewer for approval of any substantial modifications or variations from or additions to the pre-approved plans for the Property, as well as the plot plan for each townhome building.

Builder may presume that its request has been approved by the Architectural Reviewer if Builder has not received the Architectural Reviewer's written response - approving, denying, or requesting additional information - within 15 calendar days after delivering his complete application to the Architectural Reviewer.

Architectural Reviewer's written response - approving, denying, or requesting additional information - within 15 calendar days after delivering his complete application to the Architectural Reviewer.

18.7.6. Builder Signs. During the Development Period, Declarant also rese right to exempt a Builder from the sign restriction in this Declaration.

Builders in the Property may be approved in writing by Declarant prior joj subject to summary removal if not approved and if Declarant finds ity in this Section, "sign" includes, without limitation, lettering, ipag raréa improvements will be hich is not acommon expense of the e common areas will be free of ear of conveyance. Declarant's installed, constructed, or authorized by Declarant, the co Association. At the time of conveyance to the Assotis encumbrance except for the property taxes,accrvfifg Agr conveyance of title is a ministerial task that Zt) Association or the owners. The transfer of Control Period is not a transfer of com approval of common area improy he/Association at the end of the Declarant edesignation must be in writing, signed and acknowledged Mt, and recorded in the Real Property Records of Dallas County, ARTICLE 19 GENERAL PROVISIONS 19.1. Compliance. The owners hereby covenant and agree that the administration of the Association will be in accordance with the provisions of the Project Documents and applicable laws, 55 regulations, and ordinances, as same may be amended from time to time, of any governmental or quasi-governmental entity having jurisdiction over the Association or Property.

19.2. Higher Authority. The Project Documents are subordinate to federal and state law, and

time, of any governmental or quasi-governmental entity having jurisdiction over the Association or Property.

19.2. Higher Authority. The Project Documents are subordinate to federal and state law, and local ordinances. Generally, the terms of the Project Documents are enforceable to the extent they do not violate or conflict with local, state, or federal law or ordinance. In the event of a conflict between the Project Documents, the hierarchy of authority is as follows: this Declaration (highest), Association's Articles of Association, Bylaws, and the Rules (lowest). Within the Declaration, Article 18 has the highest authority.

o-ttic address of the owner's lot. Ifthe Association properly transmits the notice, the o ed to have been given notice whether or not he actually receives it.

regarding a provision, including restrictions first to give effect to Declarant's intent to Property, and second in favor of the operati pr vision of this Declaration by judgment or court io ich remains in full force and effect. The effect of a enumeration of specific matters similar to the general.

ess terminated or amended by owners as permitted herein, the provisions ith and bind the Property, and will remain in effect perpetually to the extent : ibits. The following exhibits are part of this Declaration and are incorporated herein by a Exhibit A (Description of Land(, Exhibit B (Maintenance Responsibility Chart), and Exhibit C (Consent by Owner of Real Property).

56 SIGNED AND ACKNOWLEDGED 2, & SIGNED on this 0 day of June 2006.

NEWMARK HOMES, L.P., a Texas limited partnership By: TOUSA HOMES, INC., a Florida corporation, its general partner By: ARichard D. Alberque, Ex STATE OF TEXAS § §

day of June 2006.

NEWMARK HOMES, L.P., a Texas limited partnership By: TOUSA HOMES, INC., a Florida corporation, its general partner By: ARichard D. Alberque, Ex STATE OF TEXAS § § This instrument was acknowledged before Alberque, Executive Vice President of TO corporation in its capacity as general part day of June 2006 by Richard D.

., a Florida corporation, on behalf of the ark Homes, L..P., a Texas limited partnership, 57 EXHIBIT A DESCRIPTION OF LAND THE VILLAGES OF FALCON'S LAIR PHASE ONE All of that certain 20.232 acre tract of land described by metes and bounds on the Final Plat of The Villages of Falcon's Lair, Phase 1, recorded on February 23, 2005, in Volume 2004037, Page 03115, Real Property Records, Dallas County, Texas. | N Oo” eS 6 EXHIBIT B MAINTENANCE RESPONSIBILITY CHART (See Notes at End) AREA OF COMMON RESPONSIBILITY COMPONENT OF PROPERTY OWNER RESPONSIBILITY All other aspects, including roof Decking, felt, shingles, and metal flashing, only.

Roof-mounted None.

attachments.

Outermost materials only, such as siding, stucco, and brick, and any coatings or surface treatments on the material, such as paint or sealant.

Roofs.

Exterior vertical walls of buildings, other exterior features of buildings not specifically listed in chart.

Building foundations, patio slabs, and A/C slabs. () Shrinkage during the curing of the concrete, and settling of the building.

Routine cleaning & tolerance for minor cracks that are inevitable results of the natural expansion & contraction of soil, shrinkage during the curing of the concrete, and settling of the building.

Concrete driveways & sidewalks.

Spects.

Cine wames All aspects. None.

downspouts.

Grounds - outside the

contraction of soil, shrinkage during the curing of the concrete, and settling of the building.

Concrete driveways & sidewalks.

Spects.

Cine wames All aspects. None.

downspouts.

Grounds - outside the fenced yards. MN *spees COMPONENT OF AREA OF COMMON OWNER RESPONSIBILITY PROPERTY RESPONSIBILITY Yard irrigation system None. All aspeers: (sprinkler) Exterior light fixtures None. All aspects: on buildings.

All aspects, except those noted f¢ Association. Includes, routine Roofs and exterior vertical walls, as described above.

Garages.

Skylights.

Attics.

Insulation & weatherstripping None. SX All aspects.

ZN ; at other aspects, including flues, pal on damper, and periodic flue cleaning.

All aspects.

All aspects.

All aspects.

Ne” Improvements and grounds in private None. All aspects.

patio/yards.

Chimneys & Fireplaces.

Fences and gates around private townhome yards.

Townhome interiors, incl. improvements, fixtures, partition walls & floors within townhome. a COMPONENT OF AREA OF COMMON PROPERTY RESPONSIBILITY OWNER RESPONSIBILITY All aspects, including collection drains and drain systems.

None. Prohibited from changing the drainage system.

Surface water drainage systems.

All other aspects of the garage door, and all aspects of other doors, Exterior doors of Periodic paint or stain on including paint, door frame, doog townhomes. garage doors, only. glass panes, hardware, locks peepholes, thresholds, weatherstripping, and All other aspects, inc —" ; : window framg Periodic exterior caulking ; Windows. in connection with exterior painting.

Water, sewer, electrical lines & systems.

LN \74 Heating and cooling US y systems & water All aspects.

heaters.

window framg Periodic exterior caulking ; Windows. in connection with exterior painting.

Water, sewer, electrical lines & systems.

LN \74 Heating and cooling US y systems & water All aspects.

heaters.

None for lines and system All aspects of lines and systems serving the lots. erving the lot.

Intrusion alarms on doors/ windows, smoke/heat detectors, monitoring equipment.

All aspects.

Cable for television o, : All other aspects.

internet Standards for location and appearance of exterior- All other aspects.

mounted devices.

See Notes on Next Page NOTE 1 NOTE 2 NOTE 3 NOTE4 NOTE 5 NOTE 6 NOTES TO MAINTENANCE RESPONSIBILITY CHART In the event of 'a conflict between this Maintenance Responsibility Chart and a provision of the Declaration of The Villages of Falcon’s Lair, the Declaration controls. This Maintenance Responsibility Chart may not be interpreted or amended to create a conflict with a provision of the Declaration.

As used in this Maintenance Responsibility Chart, "all aspects" includes maintenance, repair, and replacement, as needed.

Each component listed in the first column of the Maintenance Responsibility Chart @ i The Villages of Falcon’s Lair is applicable only if the component exists, and may not be congttyed to create a requirement to have such a component. A skylight is an example of 4 that may or may not be on a building.

If the owner is responsible for a component of the townhome building tha Cm enance Responsibility Chart must be recorded in ty, Texas.

townhomes in the Prope the Real Property Re of Exhibit B) 4 EXHIBIT C CONSENT BY OWNER OF REAL PROPERTY As the owner of certain lots in The Villages of Falcon's Lair, Phase 1, D. R. Horton - Texas, Ltd.,

B) 4 EXHIBIT C CONSENT BY OWNER OF REAL PROPERTY As the owner of certain lots in The Villages of Falcon's Lair, Phase 1, D. R. Horton - Texas, Ltd., hereby consents to the Declaration of Covenants, Conditions and Restrictions for The Villages of Falcon's Lair, and acknowledges, agrees, understands, and desires that all lots in The Villages of Falcon's Lair that are owned by D. R. Horton - Texas, Ltd., will become subject to the Declaration when the Declaration is recorded in the Real Property Records of Dallas County, Texas, as if the Declaration had been recorded prior to the Special Warranty Deed recorded on February 21, 2006, as Document No. 200600063806, Real Monee Records, Dallas County, Texas, by which D. - Horton - Texas, Ltd., eee from Newmark a LO David L. Booth Assistant Vice President THE STATE OF TEXAS § © § COUNTY OF DALLAS § sfore me on this (p day of June 2006 by David L. Booth, , a Delaware corporation, on behalf of said corporation in its R H Srton - Texas, Ltd., a Texas limited partnership, on behalf of the ‘ay otary Public, The State of Texas AFTER RECORDING, PLEASE RETURN TO: Ms, Sharon Reuler SETTLEPOU 3333 Lee Parkway, Eighth Floor Dallas, Texas 75219 { ae FILED AND RECORDED ™ OFFICIAL PUBLIC RECORDS i \ AB) Cobia Futon ClPoun— fe Cynthia Figueroa Calhoun, County Clerk Dallas County TEXAS July 06, 2006 01:07:32 PM FEE: $288.00 200600244356