Loading...
HomeMy WebLinkAboutWatson Ridge Covenants With Exhibit A MAIL AFTER RECORDING TO: J. Scott Flowers P.O. Box 2505 Fayetteville, NC 28302 THIS INSTRUMENT WAS PREPARED BY: J. Scott Flowers Hutchens Law Firm STATE OF NORTH CAROLINA COUNTY OF HARNETT DECLARATION OF COVENANTS, CONDITIONS AND RESTRICTIONS FOR WATSON RIDGE SUBDIVISION THIS DECLARATION OF COVENANTS, CONDITIONS AND RESTRICTIONS FOR WATSON RIDGE SUBDIVISION (this “Declaration”) is made and entered into this the ___ day of December, 2022, by Sheriff Watson, LLC, a North Carolina limited liability company, hereinafter referred to as “Declarant” or “Developer.” WITNESSETH: WHEREAS, Declarant is the owner of certain property in Lee County, North Carolina, which is more particularly described on plats titled “WATSON RIDGE” recorded in Plat Book ____, Page(s) ____, and certain real property in Harnett County, North Carolina, which is more particularly described on plats titled “WATSON RIDGE” recorded in Plat Book ____, Page(s) ____, Harnett County, North Carolina Registry (the “Property”); and, WHEREAS, Developer/Declarant proposes to sell and convey certain lots shown on the aforesaid plats to be used for residential purposes and to develop said lots, and additional property within the Development Area which may be acquired by Developer/Declarant, into a well planned community; and, WHEREAS, Declarant desires to provide for the preservation of the values and amenities and for the maintenance of the common area in said Property and under a general plan or scheme of improvement desires to subject said property to the following easements, restrictions, covenants, and conditions (hereinafter collectively referred to as “Restrictions”), which are for the purpose of protecting the value and desirability of, and which shall run with the real property and be binding on all parties having any right, title or interest in the described properties or any part thereof, their heirs, successors and assigns, and shall inure to the benefit of each owner thereof. NOW, THEREFORE, Declarant hereby declares that the real property depicted on the above-described plats shall be held, conveyed, encumbered, leased, rented, used, occupied and improved subject to this Declaration and to the following Restrictions and the North Carolina Planned Community Act as codified in Chapter 47F of the North Carolina General Statutes (the “Act”). This Declaration and the Restrictions shall run with the land and shall be binding on all parties having or acquiring any right, title or interest in and to the real property or any part or parts thereof subject to this Declaration. 2 ARTICLE I DEFINITIONS Section 1. “Additional Property” shall mean and refer to any lands which are now owned or may be hereafter acquired or developed by Declarant, in addition to the above described Property, and annexed to and made a part of the Development (as hereinafter defined) pursuant to Article VIII hereof. Section 2. “Architectural Committee” shall mean the committee composed of Declarant, during the Period of Declarant Control, and thereafter three (3) or more representatives appointed by the Board. The Architectural Committee’s role is to approve alterations and improvements as set forth herein. Section 3. “Association” shall mean and refer to Watson Ridge Homeowners Association, Inc., a North Carolina non-profit corporation, its successors and assigns. Section 3. “Assessments” shall mean the Annual, Special, Insurance, Ad Valorem and Working Capital Assessments defined in Article VI hereof. Section 4. “Board” or “Board of Directors” shall mean those persons elected or appointed and acting collectively as the Board of Directors of the Association. Section 5. “Commercial Vehicle” shall mean and refer to, but is not limited to, the following vehicles: limousines, passenger transport vehicles, dump trucks, tow trucks, tractor trailer tractors, tractor trailer trailers, landscaping trucks, flatbed trucks, cement trucks, and Lorry trucks. Solely the display of commercial signage (business name, phone numbers, etc.) will not cause a vehicle to be considered a commercial vehicle. Conversely, the absence of vehicle signage does not preclude a vehicle from being considered commercial. Section 6. “Common Properties” or “Common Areas” shall mean and refer to those tracts of land with any improvements thereon which are deeded or leased to the Association. Both terms will include stormwater ponds, open space, dedicated streets and roadways prior to their acceptance for public maintenance, entrance signage, postal kiosks, and any personal property acquired by the Association. All Common Area is to be devoted to and intended for the common use and enjoyment of the Owners, persons occupying dwelling places or accommodations of Owners on a guest or tenant basis, and visiting members (to the extent permitted by the Board of Directors of the Association) subject to the fee schedules and operating rules adopted by the Association; provided, however, that any lands which are leased by the Association for use as Common Area shall lost their character as Common Area upon the expiration of such Lease. Reference to Common Area in these Covenants does not imply or guarantee that the Property affected by these Covenants or any future sections of Watson Ridge will have any Common Area. Section 7. “Common Expenses” shall mean and include: a) All sums lawfully assessed by the Association against its members; b) Expenses of administration, maintenance, repair, or replacement of the Common Area, including, without limitation, all labor, services, common utilities, materials, supplies, equipment, costs incurred in acquiring a Lot pursuant to a judicial sale, legal, accounting or managerial fees, and all expenses in connection with the Association’s responsibilities under any stormwater management agreement (the “Stormwater Agreement”) affecting the Property; c) Expenses declared to be common expenses by the provisions of this Declaration or the Bylaws; d) Hazard, liability, or such other insurance premiums as the Declaration of the Bylaws may require the Association to purchase or as the Association may deem appropriate to purchase; e) Ad valorem taxes and public assessment charges lawfully levied against Common Area; 3 f) The expense of the maintenance of drainage and utility easements and facilities located therein which are within the boundaries of the Property; g) The expense of maintenance of any roads, streets, easements, landscaping, amenities, taxes or any other expense item associated with any Common Property not located on the Property but permitted to be used by the members of the Association by any adjoining landowner, association or other entity pursuant to any cross-easement, cross-access or other agreement by the Association with the adjoining landowner; h) Payments into any escrow account required under any Stormwater Agreement, which may include funding of the escrow account prior to a transfer of maintenance and operation responsibilities from Declarant to Association; i) Maintenance costs and service provider fees for street lights approved by the Association and/or Declarant; and, j) Any other expenses determined by the Board of Directors or approved by the members to be common expenses of the Association. Section 8. “Declarant/Developer” shall mean and refer to Sheriff Watson, LLC, a North Carolina limited liability company, and any successor or assign designated as Declarant in a document recorded with the Lee County and Harnett County Register of Deeds executed by the immediately preceding Declarant. Section 9. “Covenants” or “Declaration” shall mean this instrument as it may be from time to time amended, supplemented, modified or incorporated by reference. Section 10. “Development” shall mean the Property plus any Additional Property. Section 11. “Lot” or “Lots” shall mean and refer to any numbered plot of land shown upon any recorded subdivision map of the Property, as such map or maps may be from time to time recorded, amended or modified. Section 12. “Member” shall mean and refer to every person or entity entitled to membership in the Association. Section 13. “Offensive or Noxious” activity or behavior shall include but not be limited to a public nuisance or nuisance per se and shall also include any behavior or activity which is inconsistent with both the reasonable pleasurable use of the Property area by substantial number of the residents and overnight guests and their reasonable expectations of permanent habitation, vacation meeting, working, recreating, or enjoying sports, music, food, natural surroundings, and entertainment, free of excessively noisy behavior grossly disrespecting the rights of others, flashing or excessively bright lights, racing vehicles, significantly loud radio, hi-fi, electronic music distractions, and other unreasonable behavior curtailing the reasonable pleasure and use of the facilities within or adjacent to the Property. Public musical or other entertainment, parades, concerts, festivals, carnivals, competitions or shows conducted under permit from the Declarant shall not constitute offensive or noxious activity of behavior unless such permit is withdrawn by the Declarant, or its terms and conditions violated. Section 14. “Owner” shall mean and refer to the owner as shown by the records in the Register of Deeds of Lee County or Harnett County, North Carolina, whether it be one or more persons, firms, associations, corporations, or other legal entitles, including the Declarant/Developer, of fee title to any Lot depicted on the plat of Watson Ridge, but, notwithstanding any applicable theory of a mortgage, shall not mean or refer to the mortgagee or holder of a security deed, its successors or assigns, unless and until such mortgagee or holder of a security deed has acquired title pursuant to foreclosure or a proceeding or deed in lieu of foreclosure; nor shall the term “Owner” mean or refer to any lessee or tenant of an Owner. In the event that there is recorded in the Office of the Register of Deeds, a long-term contract of sale covering any Lot or parcel of land within the Property, the purchaser under said contract of such Lot or parcel of land shall be the Owner and not the fee simple title holder. A long-term contract of sale shall be one where the purchaser is required to make payments for the property for a period extending beyond twelve (12) months from the date of the contract, and where the purchaser does 4 not receive title to the property until such payments are made although the purchaser is given the use of said property. Section 15. “Period of Declarant Control” means the period commencing on the date hereof and continuing until the earlier of (i) December 31, 2050; (ii) when Declarant has voluntarily terminated its Declarant Rights hereunder in writing; or (iii) when Declarant no longer owns any lots in the Subdivision. Section 16. “Plat” or “Plats” shall refer to the following: Plat entitled “WATSON RIDGE” recorded in Plat Book ____, Page(s) ______, of the Lee County, North Carolina Registry; and, Plat entitled “WATSON RIDGE” recorded in Plat Book ____, Page(s) ____, of the Harnett County, North Carolina Registry. Section 17. “Property” or “Subdivision” shall mean and refer to the land as shown on the Plats. “Property” shall also include future sections of Watson Ridge as the same may be annexed pursuant to provisions herein. ARTICLE II PROPERTY RIGHTS AND EASEMENTS Section 1. Owners’ Property Rights and Easement of Enjoyment in the Common Area. Every Owner shall have and is hereby granted a right and easement of enjoyment in and to the Common Area, if any, which shall be appurtenant to and shall pass with the title to every Lot, subject to the following provisions: (a) The Association may make and amend reasonable rules and regulations governing use of the Common Areas by the Owners, and the Owner’s guests or invitees; (b) The Association, acting through the Board of Directors, shall have the right to grant easements, rights of way, licenses and similar interests over any part of the Common Areas for any lawful purpose which it determines, in its own discretion, to be consistent with the interest of the Association provided it is approved by two-third (67%) of the voting membership of the lot owners; (c) The right of the Association to suspend any Owner’s voting rights and any Owner’s right to use the Common Areas and facilities during the time period in which any assessment against said Owner’s Lot remains unpaid; and (d) Subject to other provisions of this Declaration applicable to usage of the Common Areas. Section 2. Easements in Favor of Declarant and the Association. The following easements are reserved to Declarant and the Association, their successors and assigns: (a) All easements in the portion of the Development constituting the Common Area and that portion of each Lot not occupied by a structure, which are necessary for the installation and maintenance of utilities and drainage facilities including swales, drainage ditches, and street lights. Specifically, and not by way of limitation, there shall be a ten (10) foot non-municipal utility easement along and inside the front Lot lines of all Lots. Declarant and the Association shall have the right to go upon the ground with men and equipment to erect, maintain, inspect, repair and use electric and telephone lines, wires, cables, conduits, sewers, water mains, street lights, and other suitable equipment for the conveyance and use of electricity, telephone equipment, gas, sewer, water or other public conveniences or utilities on, in or over each Lot and such other areas as are shown on the plat of the Property or any Additional Property recorded or to be recorded in the office of the Register of Deeds of Lee County and/or Harnett County; the right to cut drain ways, swales and ditches for surface water whenever such action may appear to the Declarant or the Association to be necessary in order to maintain reasonable standards of health, safety and appearance; the right to cut any trees, bushes or shrubbery and to mow any grass; the right to make any grading of the soil, or to take any other similar action reasonably necessary to provide economical and safe utility installation and to maintain reasonable standards of health, safety and appearance; and the right to locate wells, pumping stations, and tanks within 5 residential areas, or upon any Lot with the permission of the Owner of such Lot. No structures or plantings or other material shall be placed or permitted to remain upon such easement areas or other activities undertaken thereon which may damage or interfere with the installation or maintenance of utilities or other services, or which may retard, obstruct or reverse the flow of water or which may damage or interfere with established slope ratios or create erosion problems. Provided fences along the rear lot line will be permitted provided the fence is located within 18 inches of the rear lot lines and does not impede or restrict any water flow through a drainage ditch or swale. (b) Easements over all private streets, if any, access easements, and Common Area within the Development as necessary to provide access, ingress and egress between different parts of the Property and to any Additional Property. (c) Any Lots which may be subjected to non-disturbance easements or similar easements for conservation or wet lands buffering purposes. Further, some Lots may be subjected to landscape easements for the purpose of maintaining specified plantings, levels of maintenance, signs, walls, fences, and other decorative structures. The operation of such easements shall be governed by provisions in this Declaration, other recorded instruments and by policies duly enacted by the Association and pursuant to its authority set forth in this Declaration. Section 3. Utilities Reserved by Declarant. Declarant reserves the right to subject the Property to a contract with public utility provider(s) for the installation of overhead and/or underground electric cables and/or the installation of street lighting, either or both of which may require an initial payment and/or a continuing monthly payment to such public utility provider by the owner of each Lot. Declarant may devote any Lot or portion thereof, not already sold, for any construction and uses which it, in its discretion, deems necessary in order to provide the subdivision with utilities. During the Period of Declarant Control, Declarant reserves, for itself and its employees, agents, and its successors and assigns, an easement upon and a right of ingress, egress and regress on, over and under the Property for the purpose of constructing and maintaining such roadways, water, sewer, gas, storm water, drainage and retention, telephone, cable televisions and electric and other utility facilities to the extent required by any applicable governmental entity or deemed by the Declarant to be necessary or convenient for the development, use and enjoyment of the Properties and the Common Area and the conduct of construction, sales and marketing activities. Such right expressly includes the right to cut any trees, bushes or shrubbery, make any grading of the soil, relocate utility facilities within said easement and take any other similar action that it deems reasonably necessary or appropriate. Section 4. Utility Easements. Easements for installation and maintenance of utilities and drainage facilities are reserved as shown on the recorded plat. Within these easements, no structure, planting or other material shall be placed or permitted to remain which may interfere with the installation and maintenance of utilities, or which may change the direction or flow of drainage, or which may obstruct or retard the flow of water. All areas indicated as streets and easements on the recorded plats are hereby dedicated to public use for such uses forever except stormwater ponds, open space, and side yard easements which are for the use and benefit of those persons and Lots as described herein. Section 5. Other Easements. The following easements are granted by Declarant to others: (a) An easement is hereby granted to all police, fire protection, ambulance and all similar persons, companies or agencies performing emergency services, to enter upon all Lots and Common Areas in the performance of their duties. (b) In the event of an emergency originating in or threatening any Lot or the Common Areas, regardless as to whether any Lot Owner is present at the time of such emergency, the Association or any other person authorized by it shall have the right to enter any Lot for the purpose of remedying or abating the causes of such emergency and making any other necessary repairs not performed by the Lot Owners, and such right of entry shall be immediate. 6 (c) An easement is hereby established over the Common Area and every Lot within the Property for the benefit of applicable governmental agencies for installing, removing, and reading water meters, maintaining and replacing water and sewer facilities, and acting for other purposes consistent with public safety and welfare, including, without limitation, law enforcement, fire protection, garbage collection and the delivery of mail. Section 6. Nature of Easements. All easements and rights described herein are perpetual easements appurtenant, running with the land, and shall inure to the benefit of and be binding on the Declarant and the Association, their successors and assigns, and any Owner, purchaser, mortgagee and other person having an interest in the Property or any Additional Property, or any part or portion thereof, regardless of whether or not reference is made in the respective deeds of conveyance, or in any mortgage or trust deed or other evidence of obligation, to the easements and rights described in this Declaration. Section 7. Prohibition of Permanent Structures Within Easements. No permanent structure except permitted fences allowed herein may be built within those easements shown on any recorded plat of the Property, or described in the Declaration, unless constructed by Declarant. Owners may not plant trees, shrubs, flowers and grass in those easements except with written approval of the Declarant or the Architectural Control Committee. Owners shall be responsible for the cost of removal, repair and/or replacement of any non-permanent structures which the Association deems necessary to remove to allow for maintenance, servicing, repair or replacement within those easements. Owners shall also be responsible for the cost of the removal of any permanent structure constructed within those easements, if removal is required by the Association. Any costs incurred by the Association for removal, repair and/or replacement of structures or vegetation in the easement areas shall be assessed to the Owner of the related Lot. ARTICLE III RIGHTS OF DECLARANT The Declarant shall have, and there is hereby reserved to the Declarant, the following rights, powers and privileges which shall be in addition to any other rights, powers and privileges reserved to the Declarant herein: Section 1. Development Activities. During the Period of Declarant Control, Declarant shall have the right to conduct development, construction, marketing and customer service operations within the Development in a customary and reasonable fashion. This includes the right to maintain construction and sales offices and model homes on Lots which Declarant owns and to park vehicles thereon, the right of access over the streets and rights of way within the Development by construction and supply vehicles and the right to store materials and equipment related to such land development and construction on Lots owned by Declarant, and the right to make and reproduce photographs of the Common Area and of private homes in marketing, advertising, and public relations efforts. However, it shall be incumbent upon those exercising these reserved rights to conduct their activities in ways respectful of the comfort and safety of the occupants of Lots in the Development. Section 2. The Architectural Committee. All duties and responsibilities conferred upon the Architectural Committee by this Declaration or the Bylaws of the Association shall be exercised and performed by the Declarant or its designee during the Period of Declarant Control and thereafter by the Architectural Committee appointed by the Board. If the Board has not appointed the members of the Architectural Committee, the Board shall act as the Architectural Committee. Section 3. Plan of Development. The right to change, alter or redesignate the allocated planned, platted, or recorded use or designation of any of the lands constituting the Development including, but not limited to, the right to change, alter or redesignate road, utility and drainage facilities and easements and to change, alter or redesignate such other present and proposed amenities or facilities as may in the sole judgment and discretion of Declarant be necessary or desirable. The Declarant hereby expressly reserves unto itself, its successors and assigns, the right to re-plat any one (1) or more Lots shown on the plat of any subdivision of the Property or Additional Property in order to create one or more modified Lots; to further subdivide tracts shown on any such subdivision plat into two or more Lots; to recombine one or more tracts or Lots or a tract and Lots to create a larger tract: to eliminate from this Declaration Lots that are not otherwise 7 buildable or are needed for access or are needed for use as public or private roads or access areas, whether serving the Development or other property or are needed for Common Areas or amenities, and to take such steps as are reasonably necessary to make such re-platted Lots or tracts suitable and fit as a building site, access area, roadway or Common Area. Section 4. Declarant Control of the Association. During the Period of Declarant Control, the Declarant or its designee(s) shall be the only member(s) of the Board of Directors. The Declarant can turn over control to the Association at any time after the sale of the first Lot in the sole discretion of the Declarant. Section 5. Amendment of Declaration By Declarant or Board Without Membership Approval. This Declaration may be amended or supplemented without Member approval by the Declarant, or the Board of Directors, as the case may be, as follows: (a) In any respect, prior to the sale of the first Lot; (b) To the extent this Declaration applies to Additional Property; (c) To correct any obvious error or inconsistency in drafting, typing or reproduction; (d) To qualify the Association or the Property and Additional Property, or any portion thereof, for tax-exempt status; (e) To include any platting changes as permitted herein; (f) To conform this Declaration to the requirements of any law or governmental agency having legal jurisdiction over the Property or any Additional Property or to qualify the Property or any Additional Property or any Lots and Improvements thereon for mortgage or improvement loans made, insured or guaranteed by a governmental agency or to comply with the requirements of law or regulations of any corporation or agency belonging to, sponsored by, or under the substantial control of the United States Government or the State of North Carolina, regarding purchase or sale of such Lots and Improvements, or mortgage interests therein, as well as any other law or regulation relating to the control of property, including, without limitation, ecological controls, construction standards, aesthetics, and matters affecting the public health, safety and general welfare. Notwithstanding anything else herein to the contrary, only the Declarant shall be entitled to amend this Declaration pursuant to this Section during the Period of Declarant Control. Section 6. Right to Transfer Declarant Rights. Any or all of Declarant’s rights or obligations set forth in this Declaration or the Bylaws may be transferred in whole or in part to other persons. No such transfer or assignment shall be effective unless evidence by a recorded document. The foregoing sentence shall not preclude Declarant from permitting other persons to exercise, on a one-time or limited basis, any right reserved to Declarant in this Declaration where Declarant does not intend to transfer such right in its entirety. In such case it shall not be necessary to record any written assignment unless necessary to evidence Declarant’s consent to such exercise. Section 7. Dues and Assessments. Declarant shall not be responsible for paying any dues or Assessments. Section 8. Assignment by Declarant. Any or all of the rights, powers, easements, functions and obligations reserved or given to the Declarant in this Declaration may be assigned to the Association, and the Association shall accept and assume responsibility for any or all such rights, powers, easements, functions and obligations when requested by the Declarant. Any such assignment or transfer shall be made by a recorded document, executed by both the Declarant and the Association, and the Association shall thereupon have the same rights and powers and be subject to the same obligations and duties as are herein given to and assumed by the Declarant. The Declarant, but not the Association, shall thereupon be released from such obligations and duties. ARTICLE IV ARCHITECTURAL STANDARDS Section 1. General. (a) No improvements shall be made, placed, constructed or installed on any Lot and no exterior modifications including, but not limited to, exterior painting or changes in color schemes, changes in exterior materials or design, to existing improvements shall be undertaken without prior approval of Declarant during the Period of Declarant Control and thereafter 8 without the approval of the Architectural Committee in accordance with this Article, except that Declarant’s activities shall be exempt from this requirement so long as it is engaged in development or construction in the Development. (b) All improvements to Lots in the Development shall conform to the Declaration and the rules promulgated by the Architectural Committee. (c) The Declarant, during the Period of Declarant Control, and the Architectural Committee thereafter, shall have jurisdiction over all original construction or installation of homes or improvements on any Lot and later changes or additions after initial approval thereof together with any modifications, additions or alterations subsequently to be constructed or installed on any Lot or made to any improvements initially approved, including any exterior change or alteration or change of color. (d) The Declarant, during the Period of Declarant Control, and the Architectural Committee thereafter, shall have the right to disapprove any plans, specifications and details submitted to it in the event the same are not in accordance with any of the provisions of this Declaration or any provision of the Architectural Committee which may be in effect at the time, if any maintenance obligations of the Association would be adversely impacted or if the aesthetics of the Development would be negatively impacted. Disapproval of plans may be based upon any grounds which Declarant or the Architectural Committee, in their sole and uncontrolled discretion, shall deem sufficient; however, approval of plans shall not be unreasonably withheld. Owners shall have the right to appeal disapproval of plans by the Architectural Committee (but not by Declarant). The decision by the Association on such appeal, upon majority vote of the members of the Board, shall be final and not subject to appeal or review. (e) The Declarant, during the Period of Declarant Control, or the Architectural Committee thereafter, shall have the right to inspect all construction to ensure that it is performed in strict accordance with the approved plans. ARTICLE V HOMEOWNERS’ ASSOCIATION Section 1. Formation of Association. WATSON RIDGE HOMEOWNERS ASSOCIATION, INC. is a nonprofit corporation organized and existing pursuant to the laws of the State of North Carolina for the purpose of establishing an association for the Owners of Lots to operate and maintain the Common Areas and to provide any other services provided in this Declaration or agreed to by a majority of the Members. Section 2. Membership. Every Lot Owner shall be a Member of the Association. The Declarant acting through its designated officers, employees and agents shall be a Member of the Association. When more than one person is the Owner of any Lot, all such persons shall be Members, subject to such limitations and fees established by the Declarant and Board from time to time. Section 3. Voting Rights. During the Period of Declarant Control, the Declarant shall be entitled to one vote for each Lot owned by the Declarant and one vote for each Lot owned by another person. After the Period of Declarant Control, each Member shall be entitled to one vote for each Lot owned by such Member. If a dwelling unit is constructed on more than one Lot, the Owner shall have only one vote so long as such lot remains a part of the consolidated site. When any Lot entitling the Owner to membership is owned of record in the name of two or more persons or entities, whether fiduciaries, joint tenants, tenants-in-common, tenants-in- partnership or in any other manner of joint or common ownership or if two or more persons or entities have the same fiduciary relationship respecting the same lot, then all such persons shall be Members. The vote for such Lot shall be exercised as said members determine amongst themselves, but in no event shall more than one vote be cast with respect to any Lot. The vote or votes for each such Lot must be cast as a unit, and fractional votes shall not be allowed. In the event that joint Owners are unable to agree among themselves as to how their vote or votes shall be cast, they shall lose their right to vote on the matter in question. If any Owner casts a ballot representing a certain Lot, it will thereafter be conclusively presumed for all purposes that he was acting with the authority and consent of all other Owners of the same Lot. In the event more 9 than one ballot is cast for a particular Lot, none of said votes shall be counted and said votes shall be deemed void. Section 4. Cumulative Voting Prohibited. Each Owner shall be entitled to as many votes as equals the number of votes he is ordinarily entitled to multiplied by the number of Directors to be elected, but may not cast all of such votes for any one (1) Director and must distribute them among the number to be voted for, and all votes must be cast in whole numbers and not fractions thereof. It is the intent of this Section to prohibit cumulative voting. Section 5. Composition of the Board. During the Period of Declarant Control, the Declarant or its designee(s) shall be the only member(s) of the Board of Directors. The Declarant can turn over control to the Association at any time after the sale of the first Lot in the sole discretion of the Declarant. After the Period of Declarant Control, the Association shall be governed by a Board of Directors consisting initially of three (3) persons, with the number in subsequent years to be determined as provided for in the By-Laws of the Association. Section 6. Powers, Privileges, Rights and Obligations. In addition to the rights and powers granted to the Association in its charter and to the rights and powers with regard to assessments set forth in Article VI of this Declaration, the Association shall have and possess and shall perform and exercise the following powers, privileges, rights and duties, subject, however, to the rights of the Declarant contained in Article VI hereof: (d) The Association shall be entitled to make and amend the bylaws and the rules and regulations of the Association; (e) The Association shall be responsible for the operation, upkeep, maintenance, protection, preservation, repairs, reconstruction and/or replacement of (i) the Common Areas and improvements and additions thereto, including, but not limited to, private streets and rights of way, and (ii) the Limited Common Areas, if any; (iii) any utility easements or drainage easements used for the benefit of more than one lot owner; provided, however, that in the event that any of the above activities are necessitated by the willful act or active or passive negligence of any Owner, his family, guests, invitees or tenants, or is caused by fire, wind, rain, blowing water, lightening, smoke or other hazard or casualty, and the cost of such maintenance, repair or other activity is not fully covered by insurance, then, at the sole discretion of the Board of Directors of the Association, the cost of the same shall be the personal obligation of the Owner and if not paid to the Association upon demand, may be added to the annual assessment levied against said Owner’s Lot; (f) The Association may engage in such other activities as authorized by a majority of the Members. (g) After notice and opportunity to be heard, the Association may impose reasonable fines and/or suspend the voting rights and privileges or service provided by the Association (except access to lots) for reasonable periods for violations of the bylaws and rules and regulations of the Association. (h) The Association may mortgage or convey the Common Areas, or dedicate or transfer all or part of the Common Areas, to any public agency, authority or utility for such purposes and subject to such conditions as may be agreed to by at least two-thirds (67%) of the Members. (i) The Board of Directors on behalf of the Association, as a common expense, may at all times keep the Common Areas and other property of the Association, if any, insured against loss or damage by fire or other hazards and other such risks, including, but not limited to directors’ liability and public liability insurance, upon such terms and for such amounts as may be reasonably necessary from time to time to protect such property, which insurance shall be payable in case of loss to the Association for all Members. The Association shall have the sole authority to deal with the insurer in the settlement of claims. Such insurance shall be obtained without prejudice to the right of each Member to insure his personal property for his own benefit at his own expense. In no event shall the insurance coverage obtained by the Association be brought into contribution with insurance purchased by Members or their mortgagees. (j) All other powers which are allocated to the owners association under N.C. Gen. Stat. § 47F-3-102 are hereby incorporated by reference as if fully set out herein and in the event 10 of any conflict between the provisions in this Declaration and those set forth in N.C. Gen. Stat. § 47F-3-102, the provisions of N.C. Gen. Stat. § 47FF-3-102 shall prevail. Section 7. Government Permits. Obligations under all government permits for the Development shall be the obligation of the Association on the following terms and conditions: (a) General. After completion of construction of any facilities required to be constructed by Declarant pursuant to permits, agreements and easements for the Development, all duties, obligations, rights and privileges of the Declarant under any water, sewer, storm water, erosion control and utility agreements, easements and permits for the Planned Community with municipal or governmental agencies or public or private utility companies, shall be the duties, rights, obligations, privileges and the responsibility of the Association, notwithstanding that such agreements, easements or permits have not been assigned or the responsibilities thereunder specifically assumed by the Association. During the Period of Declarant Control the Declarant shall be authorized on behalf of the Association to execute any documents required or requested by appropriate governmental agencies in furtherance of the covenant. ARTICLE VI COVENANTS FOR MAINTENANCE ASSESSMENTS Section 1. Creation of the Lien and Personal Obligation of Assessments. Each Owner of any Lot, by acceptance of a deed therefor, whether or not it shall be so expressed in such deed, covenants and agrees to pay the Association the following assessments (collectively the “Assessments”): (a) Annual Assessments; (b) Special Assessments for Capital Improvements; (c) Insurance Assessments; (d) Ad Valorem Tax Assessments; and (e) Working Capital Assessments. The Assessments, together with interest, costs and reasonable attorney’s fees, shall be a charge on the land and shall be a continuing lien upon the respective Lot against which the Assessments are made. Each such Assessment, together with interest, costs and reasonable attorney’s fees shall also be the personal obligation of the person who was the Owner of such Lot at the time when the Assessment fell due. The personal obligation for delinquent Assessments shall not pass to the Owner’s successors in title unless expressly assumed by them. Provided, however, the Declarant shall not be required to pay any fees, dues, working capital, or annual assessments on any lot owned by it during the Period of Declarant Control. Each Owner covenants, for himself, his heirs, successors and assigns, to pay each Assessment levied by the Association on the Lot described in such conveyance to him within ten (10) days of the due date as established by the Board, and further covenants that if said assessment shall not be paid within thirty (30) days of the due date, the payment of such assessment shall be in default and the amount thereof become a lien upon said Owner’s Lot as provided herein and shall continue to be such lien until fully paid. Section 2. Purpose of Annual Assessment. The Annual Assessments levied by the Association shall be used exclusively to promote the recreation, health, safety and welfare of the Owners and residents of the Property and Additional Property and for the improvement and maintenance of the Common Areas and any Limited Common Areas. The funds arising from said assessments or charges, may be used for any or all of the following purposes: operations, maintenance and improvement of the Common Areas, and any Limited Common Areas, including payment of utilities, enforcing this Declaration, paying taxes, insurance premiums, legal and accounting fees and governmental charges, establishing working capital, and in addition, doing any other things necessary or desirable in the opinion of the Association to maintain and to keep the Common Areas and Limited Common Areas in good operating order, condition and repair. Section 3. Annual Assessments. The Board of Directors shall adopt an annual budget at least 60 days before the beginning of each fiscal year. Within 30 days after adoption of the proposed budget for the Development, the Board of Directors shall provide to all of the Owners a summary of the budget. The budget shall be effective unless rejected by the Members as set out 11 in the N.C. Planned Community Act. The Annual Assessment for each Lot shall be established based on the annual budget thus adopted; provided, however, that the first Annual Assessment shall be set by the Declarant prior to the conveyance of the first home to an Owner. The due date for payment shall be established by the Board of Directors. The Board of Directors shall have the authority to require the assessments to be paid in periodic installments. The Association shall, upon demand, and for a reasonable charge, furnish a certificate signed by an officer of the Association setting forth whether the Assessments on a specified Lot have been paid. Section 4. Special Assessments for Capital Improvements. In addition to the Annual Assessments authorized above, the Association may levy, in any assessment year, a Special Assessment applicable to the year only for the purpose of defraying, in whole or in part, the cost of any construction, reconstruction, repair or replacement of a capital improvement upon the Common Areas and any Limited Common Areas, including but not limited to all utility rights of way, drainage easements or any other easements for the benefit of the lot owners or the association and fixtures and personal property related thereto, provided that any such assessment shall have the assent of a majority of the Members who are voting in person or by proxy at a meeting duly called for this purpose. Section 5. Replacement Reserve. Out of the Assessments, the Board may create and maintain a reserve fund for the periodic maintenance, repair, and replacement of improvements to the Common Properties which the Association may be obligated to maintain. Section 6. Insurance Assessment. All premiums on insurance policies purchased by the Board of Directors or its designee pursuant to Article V and any deductibles payable by the Association upon loss shall be a common expense, and the Association may in any assessment year levy against the Owners equally an “Insurance Assessment,” in addition to the Annual Assessments provided for under Section 3 above, which shall be in an amount sufficient to pay the annual cost of all such deductibles and insurance premiums not included as a component of the Annual Assessment. Section 7. Ad Valorem Tax Assessments. All ad valorem taxes levied against the Common Areas, if any, shall be a common expense, and the Association may in any assessment year levy against the Owners equally an “Ad Valorem Tax Assessment”, in addition to the Annual Assessments provided for under Section 3 above, which shall be in an amount sufficient to pay such ad valorem taxes in such year not included as a component of the Annual Assessment. Section 8. Working Capital Assessments. Upon the closing of any sale of any Lot by Declarant to a purchaser, and only upon such initial sale, the Owner shall pay to the Association a one-time initial capital contribution in the amount of the current full annual Assessment for the applicable Lot OR some lower reasonable amount which may be set by the Declarant during the Period of Declarant Control, and the Board thereafter. Amounts paid into the working capital fund are not to be considered as advance payment of the Annual or any other assessments. Any working capital funds remaining after the last Lot has been sold by Declarant shall be transferred to and become part of the general funds of the Association, in the discretion of the Board of Directors. Section 9. Notice and Quorum For Any Action Authorized Under Section 4. Written Notice of any meeting called for the purpose of taking any action authorized under Section 4 shall be sent to all Owners not less than ten (10) days nor more than sixty (60) days in advance of the meeting. At the first such meeting called, the presence of Members or of proxies entitled to cast fifty-one percent (51%) of all votes of each class of membership shall constitute a quorum. If the required quorum is not present, another meeting may be called subject to the same notice requirement, and the required quorum at the subsequent meeting shall be twenty-five percent (25%) of the required quorum at the preceding meeting. No such subsequent meeting shall be held more than sixty (60) days following the preceding meeting. Section 10. Rate of Assessment. The Assessments shall be set based upon the size of the Lot with a uniform rate for all 1 acre Lots and a uniform rate for all 1/2 acre Lots and may be collected on a monthly or other periodic basis established by the Board; provided, however, that 12 Declarant shall not be obligated to pay any annual or special assessments on any Lot owned by Declarant. Section 11. Commencement of Assessments. Except as otherwise provided in Article VI, Section 1, Assessments for each Lot shall commence upon the date of acceptance by an Owner of a deed from Declarant. Section 12. Effect of Nonpayment of Assessments and Remedies of the Association. Any Assessment or installment thereof not paid within thirty (30) days after the due date shall be delinquent, in default and shall bear interest from the due date at the highest rate allowable by law or eighteen percent (18%) per annum, whichever is lower. The Association may bring an action at law against the Owner personally obligated to pay the same plus interest, costs, late payment charges and reasonable attorneys’ fees, or foreclose the lien against the Lot. During the Period of Declarant Control, in the event that the Association fails to take reasonable steps to collect delinquent assessments from lot owners, an owner may bring a derivative action for the same purpose upon prior demand upon the Association and reasonable notice. No Owner may waive or otherwise escape liability for the Assessments provided for herein by non-use of the Common Properties or abandonment of his Lot. Section 13. No Offsets. All Assessments and other amounts payable to the Association shall be payable in accordance with the provisions herein or the Associations By-Laws, and no offsets against such Assessments or other amounts shall be permitted for any reason, including, without limitation, a claim that the Association is not properly exercising its duties and powers. Section 14. Lien for Assessments. The Association may file a lien against a Lot when any Assessment levied against said Lot remains unpaid for a period of 30 days or longer. (a) The lien shall constitute a lien against the Lot when and after the claim of lien is filed of record in the office of the Clerk of Superior Court of the county in which the Lot is located. The Association may foreclose the claim of lien in like manner as a mortgage on real estate under power of sale under Article 2A of Chapter 45 of the General Statutes. Fees, charges, late charges, fines, interest, and other charges imposed pursuant to Sections 47F-3-102, 47F-3- 107, 47F-3-107A and 47F-3-115 of the Act are enforceable as assessments. (b) The lien under this section shall take priority over all liens and encumbrances on a Lot except (i) liens and encumbrances (specifically including, but not limited to, a mortgage or deed of trust on the Lot) recorded before the docketing of the claim of lien in the office of the Clerk of Superior Court, and (ii) liens for real estate taxes and other governmental assessments and charges against the Lot. (c) The lien for unpaid assessments is extinguished unless proceedings to enforce the lien are instituted within three years after the docketing of the claim of lien in the office of the Clerk of Superior Court. (d) Any judgment, decree, or order in any action brought under this Article shall include costs and reasonable attorneys’ fees for the prevailing party. (e) Where the holder of a first mortgage or deed of trust of record, or other purchaser of a Lot obtains title to the Lot as a result of foreclosure of a first mortgage or first deed of trust, such purchaser and its heirs, successors and assigns shall not be liable for the assessments against the Lot which became due prior to the acquisition of title to the Lot by such purchaser. The unpaid assessments shall be deemed to be Common Expenses collectible from all of the Lot Owners including such purchaser, its heirs, successors and assigns. (f) A claim of lien shall set forth the name and address of the Association, the name of the record Owner of the Lot at the time the claim of lien is filed, a description of the Lot, and the amount of the lien claimed. Section 15. Subordination of the Lien to Mortgages and Ad Valorem Taxes. The lien of the Assessments provided for herein shall be subordinate to the lien of any first mortgage and ad valorem taxes on said Lot. Sale or transfer of any Lot shall not affect the Assessment lien. However, the sale or transfer of any Lot pursuant to mortgage or tax foreclosure or any proceeding in lieu thereof, shall extinguish the lien of such Assessments as to payments which 13 became due prior to such sale or transfer, but shall not abate the personal obligation of the prior Owner. No sale or transfer shall relieve such Lot from liability for any Assessments thereafter becoming due or from the lien thereof. Section 16. Exempt Property. Any portion of the Property dedicated to, and accepted by, a local public authority and any portion of the Property owned by a charitable or non-profit organization exempt from taxation by the laws of the State of North Carolina shall be exempt from the Assessments created herein. However, no land or improvements devoted to dwelling use shall be exempt from said Assessments. ARTICLE VII RESTRICTIONS Section 1. All Lots shall be used for residential purposes only and shall not be used for any business or commercial purposes, provided, however, that Declarant reserves the right to use any Lot and any improvement thereon owned by Declarant as a model home with sales office. Group family homes are prohibited. Section 2. All Lots shall be residential lots, and no structure shall be erected, altered, placed or permitted to remain on any of said Lots except one detached single family dwelling of not more than two and one-half stories in height, a private garage for not more than three vehicles, and other out-buildings in the rear of the dwelling house which may be incidental to normal residential use in subdivisions of similar category. No mobile home (Class A or B) or modular home will be allowed on any Lot to which these Covenants apply. Manufactured metal buildings may be placed on the Lot for storage to the rear of the dwelling house. All driveways shall be constructed of concrete. Section 3. No dwelling shall be erected or allowed to remain on any of said Lots which shall contain a heated-area living space of less than One Thousand Two Hundred [1,200] square feet. Heated-area living space shall mean the ordinary living space in a house which is designed and constructed so as to be capable of being heated for regular living uses in cold weather. In the computation of floor space, furnace room areas, garages, carports, and porches shall not be counted. No residence or other building, and no fence, wall, utility yard, driveway, swimming pool or other structure or improvement, regardless of size or purposes, whether attached to or detached from the main residence, shall be commenced, placed, erected, or allowed to remain on a building lot, nor shall any addition to or exterior change or alteration thereto be made, unless and until building plans and specifications covering the same, showing the nature, kind, shape, height, size, materials, floor plans, exterior color schemes with paint samples, location and orientation on the building lot and approximate square footage, construction schedule, on-site sewage and water facilities, and such other information as the Declarant shall require, including, if so required, plans for the grading and landscaping of the building lot showing any changes proposed to be made in the elevation of surface contours of the land, have been submitted to and approved in writing by the Declarant and until a copy of all such plans and specifications, as finally approved by the Declarant have been lodged permanently with the Declarant. The Declarant shall have the absolute and exclusive right to refuse to approve any such building plans and specifications and lot-grading and landscaping plans which are not suitable or desirable in its opinion for any reason, including purely aesthetic reasons connected with future development plans of the Declarant of said land or contiguous lands. In passing upon such building plans and specifications and lot-grading and landscaping plans, the Declarant may take into consideration the suitability and desirability of the proposed construction and of the materials of which the same are proposed to be built to the building lot upon which it proposes to erect the same, the quality of the proposed workmanship and materials, the harmony of external design with the surrounding neighborhood and existing structures therein, and the effect and appearance of such construction as viewed from the neighboring properties. In the event the Declarant fails to approve or disapprove such building plans and specifications within thirty (30) days after the same have been submitted to it as required above, the approval of the Declarant shall be presumed and the provisions of this paragraph shall be deemed to have been complied with. Section 4. All structures shall comply with all setback requirements and maximum build upon area per Lot within the subdivsion as are set forth on the Plats When consistent with local ordinance, the building line set-back as provided for in this paragraph may be varied by as much 14 as ten (10) percent with the express consent of Declarant, which said consent document need not be on record in the Office of the Register of Deeds, Lee County and/or Harnett County, North Carolina. Section 5. No solid panel fences may be erected closer to any street line than the corner of the house closest to the street line. No wire fences of any description shall be permitted close to any street line than the corner of the house closest to the street line. No fences made of concrete block or what is commonly known as “chicken wire” shall be permitted anywhere on the lot. No fence shall exceed six (6) feet in height. Only ornamental fences (e.g., split rail fences, or fences through which there is at least 75% visibility) not to exceed three (3) feet in height may be erected between the house and the street line. Fences on the rear of the house situated on interior Lots must be attached to the rear corner of the house and must extend toward the side lines. Rear fences may be solid wood or vinyl, not to exceed six (6) feet or wood or vinyl picket, split rail with welded wire mesh or chain link not to exceed four (4) feet in height. On corner lots, the fence must extend from the rear corner of the house closest to the side street and extend to the rear lot line. On the opposite corner the fence can extend to the interior side property line before turning to the rear lot line. All fences must be approved in writing by the Declarant or Architectural Committee, which will be formed after the period of Declarant control. Section 6. No yard statuary or TV satellite signal receiving dishes are permitted on any Lot and no outside radio or television antennas shall be erected on any Lot or dwelling unit unless and until permission for the same has been granted by the Board of Directors of the Association or its Architectural Control Committee. Provided, however, an owner may install a satellite dish not exceeding twenty-two (22) inches without further approval provided said satellite dish is installed in the rear of the house or to the side of the house within five (5) feet of the rear corner of the house. Section 7. Except for lots upon which are located model homes owned by the Declarant, no signs of any type or description shall be placed on or displayed on any residential lot except signs “For Rent” or “For Sale,” which signs shall not exceed six square feet in size. Notwithstanding any language to the contrary, Declarant may erect in Common Areas temporary directional signs or signage not larger than ten square feet in size. Section 8. No automobile or other mechanical repairs shall be conducted within a Lot other than in a garage or concealed from public view. No mechanically defective automobile, motor vehicle, mechanical machine, or machinery, shall be placed or allowed to remain on a Lot at any time except in a closed garage. No Commercial Vehicle shall be permitted to be parked on any Lot or on the Properties except in the course of delivery, pick up, or discharge of a specific commercial duty. No vehicle in inoperable condition, no unlicensed vehicle, no recreational vehicle, no camper, no golf cart, no boat, no trailer of any kind, and no jet ski or other watercraft may be parked on any street or on any Lot, unless kept inside a garage or behind an approved fence or otherwise concealed from public view. No parked vehicle shall be covered by a “car cover” or other similar covering unless kept inside a garage and concealed from public view. No truck or vehicle, no camper, no golf cart, no boat, jet ski or other watercraft, an no trailer of any kind may be kept within the Common Area. For the purpose of the preceding sentences, the term “kept” shall mean present for either a period of more than ten (10) hours or overnight, whichever is less. In order to preserve the aesthetics of development, whether or not a boat, trailer, or vehicle of any type is adequately concealed from public view shall be determined by the Association in its sole discretion. The Association shall have the right to tow or remove any boat, trailer, recreation vehicle, camper, jet ski, watercraft, golf cart, Commercial Vehicle, or vehicle of any type which is parked within the Common Area or kept on any Lot in violation of this section, at the Owner’s expense, and the Owner of each Lot, by acceptance of their deed, does grant to the Association such an easement, on, across, and upon their Lot as may be necessary to enforce the provisions set out in this section. If more than two of the above non- private vehicles, trailers, or boats are stored on any Lot, they shall be screened from view of other Lots. Section 9. No trailer, tent, shack, garage, barn or similar type of outbuilding shall be placed, erected, or allowed to remain on any Lot without the written consent of Declarant, its successors or assigns. No structure of a temporary character shall be used as a residence temporarily, permanently, or otherwise. No portable storage units such as PODS may be placed on any Lot for more than forty-five (45) days. This shall not prevent the Declarant, its designees 15 or assigns from maintaining a construction trailer or office on any part of the Development until the construction of dwellings on all Lots is completed. Provided that any temporary structure must comply with all governmental laws regulations whether state or local pertaining to said structures. However, nothing herein shall be meant to prevent the construction (with Developer’s consent) of storage and utility buildings. It is the express intention of the Developer that no trailer or mobile home (including a double-wide mobile home) shall be allowed on the Property. Nothing herein shall be construed to prevent the use, upon Developer’s approval, as set forth above, of a prefabricated or modular home as long as same is consistent with the general development and the standards of quality of said subdivision and is not materially detrimental to the value of the subdivided lots in said subdivision. Section 10. The grounds of each Lot within the subdivision must be maintained to a reasonable standard established by Declarant before, during, and after construction during the period of Declarant Control and after that by the Homeowners Association. Section 11. Each Lot Owner shall maintain in a good condition their entire Lot, including without limitation any open drainage ditch on such Lot, regardless of whether such ditch shall be within the right-of-way of a road, and shall keep his Lot free from weeds, underbrush or refuse piles, or unsightly growth or objects. In the event the Owner fails to do so, then, after thirty (30) days notice, the Declarant, the Architectural Committee, the Association or its designee may enter upon the Lot and remove the same at the expense of the Owner, and such entry shall not be deemed a trespass, and in such event a lien shall arise and be created in favor of the Association for the full amount of the cost thereof chargeable to such Lot, including collection costs and such amounts shall be due and payable within thirty (30) days after the Owner is billed therefor. Such lien shall be enforceable by Court proceedings as provided by law for enforcement of liens. Section 12. No animals, livestock, or poultry of any kind shall be raised, bred, or kept on any Lot, except dogs, cats, or other common household pets, provided that they are not kept, bred, or maintained for commercial purposes. No breed of dogs that is dangerous, may be perceived by members of the general public as being dangerous, or has a propensity for being dangerous, including, but not limited to, pitbulls, rottweilers, Dobermans, chows and German shepherds, nor any dog whose lineage includes any part of any of said breeds, nor any dog that has at any time bitten a person, nor any dog that has been trained as an attack dog, shall be permitted on the Property unless such dog is at all times confined within a double fence when outside the residence. The outer fence shall be a solid panel privacy fence six (6) feet tall. There shall be an interior fence that totally contains the animal or animals running parallel to the privacy fence at a distance of not less than five (5) feet from the outer fence at any point, including the points where the outer fence joins the residence. The outer and inner fence shall comply with Section 5 of this Article and shall be six (6) feet tall. These dogs described above must remain in the yard at all times and cannot be walked or exercised in the neighborhood at any time. Section 13. No noxious or offensive activity shall be carried on upon any Lot, nor shall anything be done thereon which may be or may become an annoyance or nuisance to the neighborhood. There shall not be maintained any plants or animals, nor device or thing of any sort whose normal activities or existence are in any way noxious, dangerous, unsightly, unpleasant or other nature as may diminish or destroy the enjoyment of other Lots by the Owners thereof. It shall be the responsibility of each Owner to prevent the development of any unclean, unsightly or unkept condition of buildings or grounds on the Owner’s Lot which would tend to substantially decrease the beauty of the neighborhood as a whole or the specific area. Section 14. All light bulbs or other lights installed in any fixture located on the exterior of any building or any Lot for the purpose of illumination shall be clear, white or non-frost lights or bulbs. Section 15. No person shall undertake, cause, or allow any alteration or construction in or upon any portion of the Common Areas except at the direction or with the express written consent of the Association. Section 16. Subject to the provisions of Article III hereof, no Lot shall be subdivided, or its boundary lines changed except with the prior written consent of the Declarant during the Period of Declarant Control and thereafter by the Board of Directors of the Association. 16 Section 17. It is understood and agreed that these restrictions are made for the mutual benefit of the grantors and grantees and any and all subsequent grantees, and all such parties shall be deemed to have a vested interest in these restrictions and the right of enforcing same. Section 18. The invalidation of any one or more or any part of any one or more of the covenants and conditions set forth herein shall not affect or invalidate the remaining covenants and conditions or portions thereof. ARTICLE VIII ANNEXATION OF ADDITIONAL PROPERTY During the Period of Declarant Control, additional land may be annexed by the Declarant without the consent of the Members and therefore become subject to this Declaration by the recording by Declarant of a plat showing such property to be annexed and of a supplementary declaration extending the operation and effect of this Declaration to the property to be annexed. Any property annexed pursuant to this subsection may be annexed and subjected to this Declaration as one parcel or as several parcels at different times. The addition of such property pursuant to this section may increase the cumulative number of Lots within the Property and therefore, may alter the relative maximum voting strength of the various types of Members. Any Supplemental Declaration may contain such complimentary additions and/or modifications of the covenants and restrictions contained in this Declaration, including, without limitation, different voting rights and different annual and special assessments for the Lots so annexed as Declarant, in its sole discretion, may deem necessary or appropriate to reflect the different character or use of the property added. A Supplemental Declaration annexing additional property need only be executed by the Declarant and, if applicable, by the owner of the property being annexed, and shall not require the joinder or consent of the Association or any of its Members. ARTICLE IX GENERAL PROVISIONS Section 1. Lots Subject to Declaration. All present and future Owners, tenants and occupants of Lots and their guests or invitees, shall be subject to, and shall comply with the provisions of the Declaration, and as the Declaration may be amended from time to time. The acceptance of a deed of conveyance or the entering into of a lease or the entering into occupancy of any Lot shall constitute an agreement that the provisions of the Declaration are accepted and ratified by such Owner, tenant or occupant. Section 2. Duration. The covenants and restrictions of this Declaration shall inure to the benefit of and be enforceable by the Association, the Declarant or the Owner of any Lot, their respective legal representatives, heirs, successors and assigns, and shall run with and bind the land and shall bind any person having at any time any interest or estate in any Lot, as though such provisions were made a part of each and every deed of conveyance or lease, for a term of twenty-five (25) years from the date this Declaration is recorded, after which time they shall be automatically extended for successive periods of ten (10) years unless terminated by the Owners in accordance with the Act. Section 3. Amendment of Declaration. Except as otherwise expressly provided herein, the covenants and restrictions of this Declaration may be amended only by an instrument duly recorded in the Office of the Register of Deeds of the county where the Development is located, executed by the duly authorized officers of the Association upon the vote of not less than sixty- seven percent (67%) of the Lot Owners; provided that no amendment shall alter any obligation to pay ad valorem taxes or assessments for public improvements, as herein provided, or affect any lien for the payment thereof established herein. In no event may the Declaration be amended so as to deprive the Declarant of any rights herein granted or reserved unto Declarant. Notwithstanding the terms of the immediately preceding paragraph of this Section, for so long as Declarant owns any real property subject to this Declaration, Declarant, without obtaining the approval of any Owner or Owners, shall have the unilateral right, in its sole and absolute discretion, to make any amendments or modifications hereto which Declarant deems 17 necessary or desirable, including, without limitation, amendments or modifications to any procedural, administrative or substantive provisions of this Declaration. Any action to challenge the validity of an amendment to this Declaration must be brought within one (1) year of the amendment’s effective date. No action to challenge any such amendment may be brought after such time. Section 4. Notices. Any notice required to be sent to any Owner under the provisions of the Declaration shall be deemed to have been properly sent, and notice thereby given, when mailed, with the proper postage affixed, or emailed, to the last known address of the person or entity who appears as Owner on the Association’s books, on the first day of the calendar month in which said notice is mailed or emailed. Notice to one of two or more co-owners of a Lot or dwelling unit shall constitute notice to all co-owners. It shall be the obligation of every Owner to immediately notify the Secretary of the Association in writing of any change of address. Any person who becomes an Owner following the first day in the calendar month in which said notice is mailed or emailed shall be deemed to have been given notice if notice was given to his predecessor-in-title. Section 5. Enforcement. The Association, or any Owner, shall have the right to enforce, by any proceeding at law or in equity, all restrictions, conditions, covenants, reservations, liens and charges now or hereafter imposed by the provisions of this Declaration. Failure by the Association or by an Owner to enforce any covenant or restriction herein contained shall in no event be deemed a waiver of the right to do so thereafter. The Association shall be entitled to recover its reasonable attorney fees and costs incurred enforcing these restrictions, conditions, covenants, reservations, liens, and charges from the party or parties in violation of the same. Section 6. Severability. Invalidation of any one of these covenants or restrictions by judgment or court order shall in no wise affect any other provisions which shall remain in full force and effect. Section 7. Interpretation. In all cases, the provisions of this Declaration shall be given that interpretation of construction which will best result in the consummation of the general plan of development of the Property. The provisions of these Covenants shall be given full force and effect notwithstanding the existence of any zoning or similar ordinance which allows a less restricted use of the Property. Section 8. Authorized Action. All action which the Association is allowed to take under this instrument shall be authorized actions of the Association if approved by the Board of Directors of the Association in the manner provided for in the By-Laws of the Association, unless the terms of this instrument provide otherwise. Section 9. Trespass. Whenever the Association and/or Declarant are permitted by these Covenants to correct, repair, clean, preserve, clear out or do any action on any property or on the easement areas adjacent thereto, entering the property and taking such action shall not be deemed a trespass. Section 10. Conflict. In the event of any conflict between the provisions of this Declaration and any applicable provisions of the Lee County and/or Harnett County Zoning or Subdivision Ordinances, the provisions of the Lee County and/or Harnett County Zoning or Subdivision Ordinances shall control. ARTICLE X STORMWATER MANAGEMENT OBLIGATIONS; HOLD HARMLESS; RELEASE OF LIABILITY OF DECLARANT (a) All duties, obligations, rights and privileges of the Declarant under any water, sewer, storm water, erosion control and utility agreements, easements and permits for the Planned Community with municipal or governmental agencies, or public or private utility companies, or other third-parties, shall be the duties, rights, obligations, privileges and the responsibility of the Association, notwithstanding that such agreements, easements or permits have not been assigned or the responsibilities thereunder specifically assumed by the Association. During the Period of Declarant Control the Declarant shall be authorized on behalf 18 of the Association to execute any documents required or requested by appropriate governmental agencies in furtherance of the covenant. (b) The following covenants are intended to ensure ongoing compliance with State Stormwater Management Permit for the Subdivision as issued by the Division of Energy, Mineral and Land Resources under the Stormwater Management Regulations. (c) The State of North Carolina is made a beneficiary of these covenants to the extent necessary to maintain compliance with any stormwater management permit. (d) These covenants are to run with the land and be binding on all persons and parties claiming under them. (e) The covenants pertaining to stormwater may not be altered or rescinded without the express written consent of the State of North Carolina, Division of Energy, Mineral and Land Resources. (f) Alteration of the drainage as shown on the approved plan may not take place without the concurrence of the Division of Energy, Mineral and Land Resources. (g) The maximum built-upon area per Lot is 4,000 square feet. This allotted amount includes any built-upon area constructed within the lot property boundaries, and that portion of the right-of-way between the front lot line and the edge of the pavement. Build upon area includes, but is not limited to, structures, asphalt, concrete, gravel, brick, stone, slate, coquina and parking areas, but does not include raised, open wood decking, or the water surface of swimming pools. (h) Each lot will maintain a 30-foot wide vegetated buffer between all impervious areas and surface waters. (i) All runoff from the built-upon areas on the lot must drain into the permitted system. This may be accomplished through a variety of means including roof drain gutters which drain to the street, grading the lot to drain toward the street, or grading perimeter swales to collect the lot runoff and directing them into a component of the stormwater collection system. Lots that will naturally drain into the system are not required to provide these additional measures. (j) It shall be the sole responsibility of the Association to comply with the provisions of the Operation and Maintenance Agreement dated March 5, 2021 (the “Maintenance Agreement”), a copy of which is attached hereto as Exhibit A. For good and valuable consideration, the Association and all Owners, jointly and severally, agree to save, defend, keep harmless, and indemnify Declarant, its successors and assigns, of and from all loss, damage, costs, charge, liability, or expense, including court costs, attorneys’ fees, and other costs and expenses incident to any suit, investigation, claim, demand or proceeding, which are threatened against or suffered, sustained, incurred or required to be paid by Declarant as a result of the Association’s failure to comply with the Maintenance Agreement. In addition, for good and valuable consideration, the Association and all Owners, jointly and severally, release Declarant, its successors and assigns, from any and all liability in any way related to the Maintenance Agreement and/or the Common Area. The provisions set forth in this Section (j) of Article X may not be altered or rescinded without the express written consent of Declarant. IN WITNESS WHEREOF, this Declaration has been executed by the Declarant this the ___ day of November, 2022. SHERIFF WATSON, LLC By:_________________________________ Print Name: Title: ____ ______ 19 STATE OF _______________________ COUNTY OF _____________________ The undersigned, a Notary Public in and for said county and state, does hereby certify that _____________________, personally appeared before me this day in his or her capacity as ____________________ of SHERIFF WATSON, LLC. and acknowledged the due execution of the foregoing Quitclaim Deed and acknowledged that he/she had authority to sign on behalf of the principal in the capacity indicated above. Witness my hand and notarial seal, this the ____ day of ________________, 2022. _________________________________________ Notary Public printed name (SEAL) _________________________________________ Notary Public signature My Commission expires: ______________ 20 EXHIBIT A