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HomeMy WebLinkAboutDraft CovenantsTHIS DECLARA ROCKFORD PARTNERS principal office and place of hereinafter referred to as the WITNESSETH: COVENANTS, CONDITIONS AND RESTRICTIONS FOR SUNSET REACH ON, is made this day of , 2008 by L.L.C., A North Limited Liability Company with its business in New Hanover County, North Carolina, Declarant; WHEREAS, Declar t is the owner of certain property in the County of New Hanover, State of North Carolina, which is more particularly described on Exhibit "A" attached hereto and made a part hereof by reference; WHEREAS, Declara' t is creating on the above -described property a planned residential community to be own as Sunset Reach; and WHEREAS, Declararit desires to provide for the preservation and maintenance of the common elements and for certain other responsibilities in connection with Sunset Reach and to this end desires to subject real property described above, together with such additions or annexed properties as may hereafter be made thereto, to the covenants, conditions, restrictions, and asements, hereinafter set forth, each and all of which is and. are for the benefit of the pro erty comprising Sunset Reach and each owner thereof. NOW, THEREFO the Developer hereby declares that all of the properties described herein shall be held, mortgaged, sold and conveyed subject to the following covenants, conditions, restrictions, and easement, 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 a signs, and shall inure to the benefit of each Owner thereof. SECTION 1. "Ass( Owners Association, Inc., a assigns. The Association sl ARTICLE I DEFINITIONS iation" shall mean and refer to Sunset Reach Property orth Carolina non-profit corporation, its successors and/or l not expire but shall survive in perpetuity. SECTION 2. "Sunset Reach" shall mean and refer to that certain real property hereinabove described which is herein made subject to this Declaration and such additions thereto as many he eafter be brought within the jurisdiction of the Association SECTION 3. "Com on Elements" or "Common Area" shall mean (i) certain bermes, fencing, entrance, septic pump line easements, special purpose lot, and landscaping easements located therein; and (ii) retention or detention ponds, bio-retention areas, and other improvemer is located thereon (collectively, "Common Elements") in Sunset Reach, including all z dditional phases to Sunset Reach, and all other real property and interests in real property (including easements and open spaces) owned by the Association for the common use and enjoyment of the Owners. Declarant reserves the right, in its sole discretion, to convey from time to time additional property to the As 3ociation, and the Association shall accept any such conveyance of additional pr perty, and thereafter such additional property shall be held and maintained by the Association as Common Elements. Improvements on the Common Elements may include, but shall not be limited to, landscaping, roadways, entr ce and subdivision signs, retention and detention ponds, bio-retention areas, offsite s tic fields, erosion control devices within common areas and adding septic easements if SECTION 4. "Loy" of size, as shown on a recon reserves the right to reconfi€ or the Members of the Asso and to thereby create additc Elements. If Declarant elec lots owned. by Declarant, Df Upon the recording by Deel recorded plat or plat, the boi to be a "Lot" as defined in tl revised plat shall be a "Lot" SECTION 5. " L facilities for one or more ary. hall mean any separately numbered plot of land, regardless �d subdivision map of Sunset Reach. Declarant hereby ire, from time to time and without the consent of the Owners ation, the boundaries of any lot or lots owned by Declarant al lots, eliminate existing lots, or create additional Common to exercise its right to revise the boundaries of wie or more larant shall record a revised plat of the affected lot or lots. ant of such a revised plat, each lot shown on the previously tdaries of which are revised by the revised plat, shall cease s Declaration and each newly configured lot shown on the s defined in this Declaration. Unit" shall mean a residence containing sleeping and a kitchen. 2 SECTION 6. "Memer" shall mean and refer to every person or entity entitled to membership with voting rights in the association. SECTION 7. "Own r" shall mean and refer to the record owner, whether one or more persons or entities, of a fee simple title to any Lot which is part of Sunset Reach, including contract sellers, bul excluding those having such interest merely as security for the performance of any obligation. SECTION 8. "Declarant" shall mean and refer to Rockford Partners, L.L.C., as well as its successors and assigns, if Declarant shall make an express conveyance to such successor or assign of its rights as Declarant hereunder, all of which rights may be assigned. SECTION 9. "Board of Directors" or "Board" means those persons elected or appointed. to act collectively s the directors of the Association. SECTION 10. "Byl ws" shall mean the bylaws of the Association as they now or hereafter exist. An Section 1 may be after acquired into required for such action, rf ARTICLE II and Planned Unit Development herein retains the right to annex additional property that Subdivision. No approval of the Association shall be of the time frame this may occur. Section 2. Developer herein retains the right to create a Planned Unit Development at a later date which Subdivision shall automatically become a part of. Nc further action on the part of Developer or Association shall be required, and no approval of Association shall be required to do so. ARTICLE III COMMON ELEMENTS OWNERSHIP AND MAINTENANCE SECTION 1. Members Easements of Enjoyment. Subject to the provisions of Section 3 of this Article, every Member shall have a non-exclusive right and easement of enjoyment in and to the Common Areas, and such easement shall be appurtenant to and shall pass with the title to every Lot. SECTION 2. T itself, its successors and a,,, last lot in Sunset Reach is limited warranty deed, fee Common Areas. The Developer hereby covenants for is, that on or before twelve (12) months from the date the veyed to an Owner, it will convey to the Association, by ple title to the Common Areas, subject, however, to all liens and encumbrances of r0ord and to the following covenant, which shall be deemed to run with the land and shall be binding upon the Association, its successors and assigns. In order to preserve a d enhance the property values and amenities of the community, the Common Areas and all facilities now or hereafter built or installed thereon shall at all times be maintained in good repair and condition and shall be operated in accordance with high standards, by the Developer, and upon conveyance the Association. The maintenan e and repair of the Common Areas shall include, but not be limited to, the repair of damage to pavements, roadways, walkways, outdoor lighting, buildings, if any, recreational equipment, if any, fences, storm drains and sewer and water lines, connections and appurtenances. This Section shall no be amended so as to eliminate or substantially impair the obligation for the maintenan e and repair of the Common Areas. SECTION 3. Exteni of Members Easements. The rights and easements created hereby shall be subje t to the following: (a) The right of the Developer, and of the Association, to dedicate, transfer or convey all or any part of the Common Areas, with or without consideration o any successor association, governmental body, district, agency or aut ority, or to any utility company, provided that no such dedication, transfer or conveyance shall adversely affect the use of the Common Ares by the Members of the Association; (b) The right oft e Developer and of the Association, to grant and reserve easements and right-of-way through, under, over and across the Common Areas, for the installation, maintenance and inspection of lines and appurtenances for public or private water, sewer, drainage, fuel oil and other utilities nd services, including a cable (CATV) or community antemla television system and irrigation or lawn sprinkler systems, and the right of the Developer to grant and reserve easements and rights -of -way through, overand upon and across the Common Areas for the completion of the Develo ment, including the sale and development of properties adjacent to the Subdivision, whether or not made subject to the provisions hereof, and for the operation and maintenance of the Common Areas as well as public walking trails; (c) The right of visitors, invitees, etc., to ingress and egress in and over those portions of the Common Areas that lie within the private roadways, parking lots and/or driveways (and over any other necessary portion of the Common Areas in the case of landlocked adjacent Owners) to the nearest public highway; (d) The right of toe Association, as provided herein and in its by-laws, to suspend the e joyment rights of any Member for any period during which 11 any assessme t remains unpaid. Provided, however, that the right of a Member to ingress and egress over the roads and/or parking areas shall not be suspended; (e) The right oft e Association, as provided herein and in its by-laws, to suspend the e joyment rights of any Member for any infraction of its published rule s and regulations. Provided, however, that the right of a Member to ingress and egress over the roads and/or parking areas shall not be suspended; (e) The rights of t e Association, in accordance with law, and its Articles of Incorporation and by-laws, to borrow money for the purpose of improving the Common reas and in pursuance thereof to mortgage the same. SECTION 4. Delell4tion of Rights., i hts. Any owner may delegate, in accordance with the by-laws of the Association, his right of enjoyment to the Common Areas and facilities to his employees, tenants, invitees or licensees. SECTION 5. Addit'onal Structures. Neither the Association nor any Owner or any group of Owners shall, without the prior written approval of Developer, erect, construct or otherwise locate any structure or other improvement in the Common Areas. SECTION 6. RULVS AND REGULATIONS: The Association shall have the power to formulate, publish and enforce reasonable rules and regulations concerning the use and enjoyment of the Common elements. Such rules and regulations shall be maintained in a place reasonably convenient to the Members and available to them for inspection during normal business hours. SECTION 7. REG LATION OF USE OF COMMON ELEMENTS: The Association shall have the power to limit the number of guests, to regulate hours of use, and to curtail any use or uses of the Common Elements it deems necessary for the best interest of Members or the Dr tection of the facilities. SECTION 8. The Declarant may d area of Sunset Reach for the construction. Declarant rese alienable, and releasable ens entrance area, to erect, main bermes and entrance. Such i to provide or maintain such The Association Elements, special purpose 1 i and construct bermes along roads and at the entrance ;fit of the lot owners. Declarant will pay the cost of unto itself, its successors/assigns/agents, a perpetual, it or right to go on, over and under any bermes and the and use suitable equipment to erect and maintain the shall not create any obligation on the part of Declarant es or entrance. be responsible for the maintenance of all Common the entrance to the Subdivision and any bermes in said Subdivision, and said Associ tion is hereby granted the right to enter upon the lots where the special purpose lot, entrance, common elements or bermes are located for the maintenance of same. Declarant reserves the right to determine whether and to what extent any additional landscaping is required on the bermes, entrance area and Common Elements. The property owners f any such .lots whereupon a berme, entrance or Private Sewer Line Access and Maintenance Easement is located shall not place any item of a permanent nature upon said berme, entrance or Private Sewer Line Access Easement which the owner does not wish to remove at owner's expense, nor shall Owner landscape a berme or entrance area with out the written permission of Declarant and/or the Association. The property o ner shall be responsible for any expense incurred by the Declarant and/or Association in removing any items built into or upon offsite septic pump line easements, berme or entrance by the property owner and/or repairing any damage caused to the offsite septic pump line easements, the offsite septic pump lines, a berme or entrance as a result of property owner's actions. Such cost will be added to the Owner's annual assessments and Declarant and/or the Association shall have the right to recover any such unpaid cost , together with attorney's fees, court costs and interest pursuant to this declaration. The Association shall be responsible for the maintenance of any retention or detention ponds, bio-retentionareas, and all adjoining common areas, as well as any erosion control devices located within common areas. in accordance with the directions of the governmental office having jurisdiction for watershed protection. In addition, any amendments relating to the o ership or maintenance of any such ponds or bio-retention areas shall first be reviewed and approved by the governmental office having jurisdiction for watershed protection prior to recording. The Association shall be responsible for the government of all landscape easements located with SUNSET REACH. No Owner may cut down or remove any tree located within such landscape easements, and no Owner may construct or place any permanent improvement within such landscape easements, without the prior written approval of the Association. The Association shal be responsible for the maintenance of all fencing constructed by Declarant alo g bermes and within landscaping easements with SUNSET REACH. The Association shall be responsible for the maintenance of all Common Elements designated as special purpose lot within SUNSET REACH, except that the maintenance of all drain fines and equipment as may be located within such Common Elements shall be the responsibility of the appropriate Owner. The Association shall also be responsible for the mainte ance of all septic pump lines located within septic line maintenance easements in SWNSET REACH. 6 In the event the any of its maintenance oblig,- Owners of record of the Lots severally liable for any and a SECTION 8. DEC limitations of any nature as All of SUNSET described in Section 72 be] restrictions and easements: iation is dissolved or ceases to exist or otherwise defaults in lions as hereinabove set forth, then in such event the at the time of the required maintenance shall be jointly and 1 costs associated thereto. kRANTS USE OF COMMON AREA: There shall be no the declarants uses of common areas or amenities. ARTICLE IV RESTRICTIONS H, except for Lot 42 as shown on said plat and as shall be subject to the following covenants, conditions, Nection 1. Contormity and Approval of Structures. No structure, fence, sidewalk, wall, drive or other improvement shall be placed or altered on any Lot except in accordance with the provisions of this Declaration. subdivided except as herein, or projections of any kind, s building lines as hereinafter Section 3. nothing shall prevent the con such cases, the Developer me Owner or Owners of any Lot, subsequently wish to revert t( combination which would no written consent of the Develc adjoining Lot Owners, or oth on or interfere with such Lot Developer who may expressl Lot in the Subdivision does n successor or assign. Section 4. Alt( Where because of size, natui Developer, it should be to th the building lines of any Lot successors and assigns, and 7 conditions. The Developer of change of building lines b established. of Lot - Easements and Encroachments. No Lot shall be r provided and no building or residence, including porches . be erected so as to extend over or across any of the iblished. ize of Lots. Lot or Lots may not be subdivided, however, )ination of two or more Lots for a single building site. In alter the building or setback lines to conform. Should the which have been combined for a single building site the original plan of the Subdivision, or make any other be in violation of this restriction, may be done only if the rer is first had and obtained. In such instances, the r Owners in the Subdivision shall not have the right to pass arrangement. Such rights shall be exclusively that of the have transferred such rights, but the purchaser of any other t, by virtue of his status as a purchaser, become any such Lines in the Best In d terrain, or any other reason in the sole opinion of the best interest of the Development of this Subdivision that )e altered or changed, the Developer reserves unto itself, its o other, the right to change said lines to meet such )ecifically reserves the right to transfer and assign this right the Architectural Control Committee hereinafter 7 Section 5. residential purposes exclusi` erected, altered, placed or pe single family residence cons provided, however, that notl Developer from maintaining Subdivision for the purpose Use of Lots. All Lots shall be used for single family y. No structures, except as hereinafter provided, shall be fitted to remain on any Lot other than one (1) detached cted in accordance with the Plans and Specifications, g contained herein shall be construed to prevent the ie or more model homes and/or sales offices in the selling property in the Subdivision. Section 6. Maintenance of Lots. It shall be the responsibility of each Lot Owner to prevent the development of any unclean, unsightly, or unkempt condition of buildings or grounds on such Lot whick shall tend to substantially decrease the beauty of the neighborhood as a whole or the specific area. Every Owner shall maintain the structures and grounds on each Lot at all times in a neat and attractive manner. Upon the Owner's failure to do so, the Association may, at its option after giving the Owner ten (1.0) days written notice sent to his last known address, or to the address of the subject premises, have the grass, weeds, shrubs and vegetation cut when and as often as the same is necessary in its judgment, and have dead trees, shrubs and plants removed from such Lot and replaced, and may have ny portion of the Lot re -sodded or landscaped, and all expenses of the Association tinder this Section shall be a lien and charge against the Lot on which the work was done and the personal obligation of the then Owner of such Lot. Upon the Owner's failure to maintain the exterior of any structure in good repair and appearance, the Association ay, at its option after giving the Owner thirty (30) days written notice sent to his last known address, make repairs and improve the appearance in a reasonable and worlananlil e manner. The cost of any of the work performed by the Association upon the Owner's failure to do so shall be immediately due and owing from the Owner of the Lot to the 6 ssociation and shall constitute an assessment against the Lot on which the work was perfo med, collectible in a lump sum and secured by the lien against the Lot as herein provided. Any Owner may choose to perform maintenance on his own yard that would normally be the responsibility of the Association, but in no event, shall such Owner bee titled to any offset or deduction in his assessments for performing such maintenanc . The Association is hereby granted a perpetual easement across each Lot for the purposes of carrying out its responsibilities under this Section. Section 7. Nuisance: any Lot, nor shall anything 1 amloyance or a nuisance to i on any Lot or within the De, animals (other than househc existence of which is in any as may diminish or destroy 1 Owner thereof. service shall be placed overhead. Provided, h No noxious or offensive activity shall be carried on upon done thereon tending to cause embarrassment, discomfort, neighborhood. No trash, leaves or rubbish may be burned .opment nor shall there be maintained any plants, poultry, pets) or device or thing of any sort, the normal activities or ay noxious, dangerous, unsightly, unpleasant or of a nature : enjoyment of other property in the neighborhood by the of Above Ground Utilities. All electrical and telephone ;round and no outside electrical lines shall be placed that the normal service pedestals, etc., used in conjunction with such underground utiliti s shall be permitted within the Development. Overhead utilities shall be permitted'du ing the construction period and until utility companies can place them underground. Section 9. Satellite D'shes. Satellite dishes shall not be placed in the front of the property. Properly maintained satellite dishes may be placed at the rear of the property with the prior approval of the Developer. Upon the Developer's selling of all the Lots in the Subdivision, this right of approval shall be transferred to an architectural review board of the Association. iti6n Against Business Activi business activity, including b shop, antique shop, professio whatsoever shall be carried o contained herein shall be con on said Lots or the showing c Subdivision. Nothing herein from erecting, place or maint for its operation and sales in contained shall prevent the D and marketing signs in coma shall any Lot or structure be structure as a "time-sharing" Section 1.1. Minin in boring for oil or natural premises, nor shall any oil, materials of any kind be pr garbage receptacles or simila established by the Developer Developer, which shall be vi: garbage or trash incinerator s other disposal of garbage on be permitted, notwithstandin; facilitating development. Pr( the requirements of this Sect: bodies. Use. No not limited to, a rooming house, boarding house, gift it office or beauty shop or the like or any trade of any kind upon a Lot or Lots. Provided, however, that nothing rued so as to prohibit the construction of houses to be sold said houses for the purpose of selling houses in the call be construed to prevent the Developer or its agents ning signs, structures and offices as it may deem necessary e Subdivision. Provided, however, that nothing herein /eloper or its agents from erecting and maintaining sales n areas. No Lot or structure shall be "Time-shared", nor vned, used or operated so as to constitute such Lot or .it within the meaning of such statutory provisions. 1 Drilling. No derrick or other structure designed for use shall be erected, placed or permitted upon any part of the ural gas, petroleum, asphalt, or hydrocarbon products or ced or extracted from the premises. )isposal. Each Lot Owner shall provide underground facilities in accordance with reasonable standards or roll -out garbage containers of the type approved by the ible from the streets on garbage pick-up days only. No call be permitted upon the premises. No burning, burying or my Lot or Lots within the Subdivision or Development shall Declarant's right to burn underbrush for the purpose of vided, however, that Owner shall be permitted to. modify :)n where necessary to comply with orders of governing Section 13. Easemen for Utilities. The Developer reserves unto itself, its successors and assigns a perpetual alienable, 10-foot easement and right of ingress and egress over, upon, across and under each Lot and Common Areas for the erection, maintenance, installation and use of electrical and telephone wires, cables, conduits, sewers, water or other public convenience or utilities, including an easement for privately owned television and other c mmunications cable and equipment, and the Developer may I further cut drain ways for sur ace water when such action may appear to the Developer to be necessary in order to main .ain reasonable standards of health, safety and appearance. These easements and rights e pressly include the right to cut any trees, bushes or shrubbery, make any grading of soil, or to take any other similar action reasonably necessary to provide an economical and safe utility or other installation and to maintain reasonable standards of health, safety and appearance. It further reserves the right to locate wells, pumping station , and tanks within residential areas on any walkway, or any residential Lot designated for use on the applicable plat of the residential Subdivision, or to locate same upon an adjac nt Lot with permission of the Owner of such adjacent Lot. Such rights may be exercised by the licensee of the Developer but this reservation shall not be considered an obligation of the Developer to provide or maintain any such utility service. No structures, including walls, fences, paving or planting shall be erected upon any part of the property which will interfere with the rights of ingress and egress provided for in this paragraph. Provided, however, that such easements and rights, shall be restricted to the roads, streets, alleys and easements as shown and designated on the applicable plat or plans of the Development. Section 14. Tem ora Structures. No structure of a temporary character shall be placed upon any Lot any time, provided., however, that this prohibition shall not apply to shelters used by the contractc r during construction of the main dwelling house, it being clearly understood that the la ter temporary shelters may not, at any time, be used for residence or permitted to remain on the Lot after completion of construction. No shack, tent, barn, bus -body, junked vehicle, tree house or other similar vehicle, out -building or structure shall be placed on any Lot any time either temporarily or permanently. Section 15. Stora e Receptacles. No fuel tanks or similar storage receptacles may be exposed to view, and may be installed only within the main dwelling house or buried underground. Any exterior air conditioning or heating units shall be screened from view from all Common Areas and adjacent Lots. Section 16. Replattim of Lots. No Lot's boundary lines shall be changed, except as herein provided. However, the Developer hereby expressly reserves to itself, its successors and assigns the right to replat any two or more Lots owned by the Developer shown on the plat of said Subdivision prior to delivery of the deed therefor in order to create a modified building L t or Lots. The restrictions and covenants herein apply to each such building Lot so cr ated or recreated. premises so as to be visible Section 18. Water S permitted upon the premises purposes only, which shallov the pump and the covering of prior to installation. No clothesline or drying yards shall be located upon the any Common Area or from any adjoining Lots. stems. No individual water supply system shall be ,vith the exception of a shallow well to be used for irrigation well shall be approved in writing in all respects, including screen thereof by the Developer, its successors or assigns, 10 19. Off -Stye t Parking. Adequate off-street parking shall be provided by the Lot Owner herein for the parking of automobiles or other vehicles ova -led by the Owner and the Owner agrees not to park his automobile or other vehicles on the streets or Common Areas to the Subdivision. No travel trailers, campers or other habitable motor vehicles of any kind, whether self-propelled or not, school buses, or commercial vehicles, or boat trailers or boats shall be kept, stored or parked overnight, either on any Common Area, specifically including streets, or any Lot, except within enclosed approved. garages or sheltered from view from neighboring Lots, or Common Areas or as otherwise permitted herein. The Archit ctural Review Board must approve any boat or camper to be housed on the property, outside of the garage. Vehicles may not block any sidewalks when constructed. Section 20. Sewer S stem. The developer herein grants an easement to each lot for use of the off site septic field as shown on exhibit "B" attached hereto. The purchaser of each Lot assumes responsibility for the construction of their lines, and are required upon construction of their horne to stub up underneath the house, and prepare it to be connected to public sewer sy tem with gravity flow, at such time as it is available. Developer maintains all ownership of the offsite septic fields, and at such time as public sewer is available to the subdivision the easement granted herein will automatically expire with no further action required by any party. Association bears the sole responsibility of maintenance of said system and for insuring the septic system is in accord with all governmental requirements. Repairs to system are the sole responsibility of the owner of the lots which are using said system. For the purpose of this section, public sewer system shall men either governmental system or a private system with which Declarant may choose to negotiate services with. Declarant may negotiate for this regardless of whether or not i owns any lots, notwithstanding the septic lots, in the subdivision at that time. Each lot owner is required to pay all fees and perform all work, at their expense, associated ith connection to water and sewer for their lot. 1. Exclusioip of Street Curbs and Sidewalks. All streets within the Subdivision are to be paved and no sidewalks are to be constructed along the streets without prior written approval of the developer or the Association. Section 22. Nothing in this Declaration shall be construed to prohibit the Association from constructing, operating and maintaining a facility for use as its office and headquarters, for the ben fit of the Association and its Members. Section 23. Once improvements must be su commencement. Section 24. All str substantially new material Lot. ruction of improvements is started on any Lot, the tially completed within six (6) months from ..es constructed or placed on any Lot shall be built of no used structures shall be relocated or placed on any such 11 Section 25. No animE household pets, shall be kept any noise or odor objectionat Common Area unless under t maintain pets on the Lots for leash or within yard fences w Section 26. No shall be permitted to be development must be ci authority. Section 27. No trash, accumulated or permitted to i days. Section 28. All properly maintained by the ditch runs, no building or s feet from the drainage ease Association, and must be k or livestock of any description, except the usual any Lot. No pet shall be allowed which shall produce to any other Owner, nor shall any pet be allowed on any direct control of an Owner. No Owner shall breed or nmercial purposes. All dogs and cats must be kept on a. 1 outdoors. , partially wrecked, or junk motor vehicle or part thereof, or kept on any street or Lot. All vehicles kept in the registered and licensed with the appropriate state garbage or other refuse shall be dumped, stored, on any Lot for a period of more than .fifteen (15) ;e ditches outlining the perimeter of the property shall be mer. In the case of any Lot along which such a drainage ture shall be built within 9 feet of the property line (i.e., 4 it). Stormwater drainage areas shall be maintained. by the in compliance with all governmental requirements. Section 29. Fences w ich are to be placed in the front of homes must receive prior approval from the Deve oper. In no event shall any chain -link or cyclone fence be permitted. All fences constri icted on Lots must be approved by the Architectural Review Board prior to installation. Section 30. All Owners' drives and parking spaces must be paved and each paved parking area for a two -car garage must be at least 16 by 25 feet and each paved parking area for a single -car garage must be at least 8 by 25 feet. Section 31. All € unsightly. All vegetable Section 32. All front include only cutting of grass garden created by homeowni maintained by individual ho Section 33. There Subdivision except from c must be well kept and properly cultivated. so as not to be s must be in the rear of the property. ards shall be maintained by the association. This shall id trimming of existing trees and shrubbery. Any flower must be approved by Developer/Association and must be be no access to any Lot on the perimeter of the ated roads within the Subdivision. Section 34. Each Lot Owner shall provide a paved area for parking two (2) automobiles off the street pri r to the occupancy of any dwelling constructed on said Lot. 12 Section 35. The ownership of the recreational amenities, if any, within the property shall be in the Association or its successors, grantees, or assigns and the use and enjoyment thereof shall be on such terms and conditions as the Association, its successors, grantees or assigns, shall from time to time prescribe. Section 36. Each suc ' grantee also agrees, by such acceptance, to assume all the risks and hazards of ownership or occupancy attendant to the ownership of such Lot, including but not limited to, if s proximity to any recreational facility or Common Area. Section 37. Without two inches (2") in diameter intentionally damaged on an, construction or safe mainten unless such tree is diseased c this restriction occurs agrees with a tree of comparable sit Section 38. Without following materials may be i Subdivision.: )eveloper's prior written consent, no tree which exceeds d ten feet (10') in height shall be cut, removed or Lot or Common Area, unless such tree interferes with. the ice of improvements on such Lot or Common Area or dead. The Owner of any Lot upon which a violation of 3 promptly (within 30 days after notice) replace such tree eveloper's written consent being first obtained, only the :d in the exterior construction of residences in the (a) Cedar, fir, pine, redwood, spruce, weathered wood, standard vinyl siding, aluminum sidi rig or brick veneer. Foundations must be built of brick, stucco, concre e, or block. All foundation specifications must in. with county approval. (b) For the roofs of residences in the Subdivision, only architecture fiberglass three tab shingles or timber line shingles may be used. Shingles must be rated as 25 year shingles or better. Metal or rolled roofing may be used. (c) No material y be left unpainted or unpreserved. All colors must be approved by the Developer or, after all lots are sold, by the architectural review board. Section 39. No property owner or individual shall alter in any way any common property or Common Area (except with the written permission of the Association provided that such activity is required for the benefit of the Association or the Subdivision as a whole). Section 40. Pools, sps, jacuzzis, and hot tubs may be allowed on individual lots with approval of the Architectural Review Board and all required governmental permits. In no event at any time may any above ground pools be placed on lots. Section 41. AM development must be an Builders. Any company building a home in the ved builder. At this time the sole approved builder is 13 Rockford Partners, Inc. App owed builders may be added from time to time through an amendment to this declaratio . Section 42. No use o any non -street -legal motorcycles or mini -bikes or "go-- karts" shall be permitted in the Development at any time. Section 43. No lot which has frontage on the river may construct a private pier or dock from their lot. An easei ient to all riparian rights is herein reserved to Developer in order to create a community ocking system. In the event that the community dock is not approved within two years of the signing of this document, the owners of the river frontage lots may then, and only then, apply for CAMA permits to construct their own private docks or piers. Section 44. No lot w1fich has frontage on the river may in any way construct or maintain any drain pipe or gr ding on their lot which will allow for water runoff to discharge directly into the riv r. All drains must feed into the on site retention ponds. Section 45. Declarant herein maintains an easement to continue to use wells currently in existence on particular lots. This easement shall cease at such time that either construction begins on that particular lot, or that it becomes an impediment to construction commencing. Section 46. No comrr. ercial vehicles shall be parked on any lot or any common area. This shall not exclude commercial vehicles in the course of business from parking in the development. However, no resident shall be allowed to park his/her commercial vehicle in the Development. Section 47. Use of R Clubhouse and any other rec rules shall result in loss of ac Such loss of access shall not SECTION 48. C reational Amenities. All rules for use of the Pool, itional amenities shall be adhered to. Violation of said ss for a period of time to be set by the Board of Directors. sult in reduction of annual assessment due. OVAL OF STRUCTURES. No structure, fence, sidewalk, w 1, drive or other improvement shall be placed or altered on any Lot except in accordance lwith the provisions of this Declaration. SECTION 49. SUI ENCROACHMENTS. No building or residence, includ to extend over or across any SECTION 50. except for residential purpose subdivision unless used temp living quarters. No building any lot other than a detached ON OF LOT — W. t shall be subdivided except as hereinafter provided and no porches or projections of any kind, shall be erected so as the building lines as hereinafter established. JSE AND BUILDING TYPE. No lot shall be used No mobile homes or campers shall be permitted in said rily as a construction office and they are not to be used as 11 be erected, altered, placed or permitted to remain on gle family dwelling not to exceed two and one-half 14 stories in height above groun level. No lot shall be permitted to be subdivided. This section notwithstanding, Declarant may, upon amlexation of adjacent properties into a Planned Unit Development, may designate future acquired lots for multi family or commercial purposes. SECTION 51. DWELLING. No residential dwelling on any Lot shall be constructed on any Lot which has a fiilly enclosed floor area of the main structure devoted to living purposes (e),, elusive of roofed or unroofed porches, decks, terraces, garages and carports) of less t an 2400 square feet for lots 8-22, ow less than 1800 square feet for lots 23 through 38. SECTION 52. SET be erected on any Lot nearer 1 front line abutting on a street) including all roof overhangs c to the rear of the Lot, provide with applicable New Hanover or structure shall be erected v further, that the requirements Developer, its successors and otherwise work a hardship up or more natural features of thi front lots in accordance with 1 SECTION 53. maximum built upon surface maximum amount of impervi SECTION 54. a. No building Declarant by a written BACK LINES. No dwelling or structure of any kind shall ian Twenty -Five feet (30') to the front line of the Lot (the Five feet (5') to the adjacent Lot on either side of the Lot other areas overhanging the foundation and Ten feet (10') 1, however that erection of dwellings and structures comply County code and, further provided, that no such dwelling :thin the right-of-way of any public utilities, and provided, )f this paragraph may be released in whole or in part by the rssigns, in its sole discretion in the cases that would in Lot Owners or would result in substantial damage to one Lot. There may additional setback restrictions for water 'AMA regulations. VIOUS SURFACE RESTRICIONS. Each lot will have a . in accordance with governmental restrictions. The surface for each lot shall be 4350 square feet. TI be located. on any lot except on the site approved by the b. For the purpos s of this covenant, decks, steps and open porches shall not be considered as a part of a bi ilding, provided however, that this shall not be considered to permit any portion of a bui ding on a lot to encroach upon another lot. C. All foundatioi Rockford Partners, L.L.C. in become scarce, Rockford Par approval for alternate materi; materials to be used. d. All siding otherwise approved by R construction building ma must be brick or approved masonry veneer as approved by riting. However, should construction building materials ers, L.L.C. may elect to approve alternate materials. Any must be made in writing and must specify the type of als must be brick or approved masonry veneer as d Partners, L.L.C. in writing. However, should become scarce, Rockford Partners, L.L.C. may elect to 15 approve alternate materials. writing and must specify the SECTION 55. asphalt, as approved by SECTION 56. and maintenance of utilities plat. Within these easemen permitted to remain which r of utilities, or which may of channels. The easement are easements, shall be rmaintai improvements for which a f shall make the final determi easement. approval for alternate materials must be made in of materials to be used. AYS. All driveways shall be paved with concrete or Partners, L.L.C. in its sole discretion. MENTS. Drainage easements, easements for installation rid sight easements are reserved as shown on the recorded no structure, planting or other material shall be placed or ty damage or interfere with the installation and maintenance ruct or retard the flow of water through natural drainage of each lot, including, but not limited to drainage ;d continuously by the lot owner except for those )lic authority or utility company is responsible. Declarant ition as to any maintenance and landscaping upon said Rockford Partners, L.L.C. reserves unto itself, the Association, and its successors and/or assigns, the inalienable right to establish additional easements upon any lot or lots within the subdivision for access to and use of any emergency septic fields within the subdivision Common Elements, provided that such easement does not render such lot unsuitable for building pursu r to these Restrictions and to New Hanover County ordinance. SECTION 57. NUISANCES. No noxious or offensive activity shall be carried on upon any Lot, nor shall anything be done thereon which may be or become an annoyance or nuisance to the nei2hborhood. SECTION 58. TEMPORARY STRUCTURES. No structure of a temporary character, trailer, tent, shack, Drarage, barn, or other outbuilding shall be used on any Lot at any time as a residence, either temporary or permanently. SECTION 59. LANDSCAPING. a. All Lots must be landscaped within thirty (30) days after occupancy of the dwelling located thereon. The landscaping must be consistent with other homes in the Subdivision. The Declarant sfiall have the final decision as to whether the Lot has been landscaped in accordance wit the covenants and restrictions. b. The Declarant shall have the final decision as to whether any additional landscaping is required on any Common Elements. The Association shall be responsible for the maintenance and upkeep of the Common Elements. C. Grading must the express written permissic A impede the natural flow of water from lot to lot without of the Declarant. 16 SECTION 60. SIGN . No sign of any kind shall be displayed to the public view on any lot except for one professional sign of not more than six square feet advertising the property for sae or rent; however, this provision is subject to the following exceptions: a. Signs used by t�e Declarant to advertise during the construction and sales perio must not exceed thirty-two (32) square feet. b. Only one Modc 1 Home shall be permitted for the development. Declarant shall make the determination as to which home will be the developme is Model Home. No signs advertising model homes shall be permitted on any lot except for the lot designated by the Declarant as th development's Model Home. C. Temporary "Open House" signs of not more than six square feet shall be permiti ed to be displayed on the day or days such open house shall be held, b it shall be removed when the open house is not being conducted. SECTION 61. USE OF PROPERTY. No lot or the building thereon shall be used for business, manufacturing, or commercial purposes, nor shall any animals or fowl be kept or allowed to remain on said property for commercial or breeding purposes, or which create a nuisance or am oyance to any lot owners. SECTION 62. GA AGE RECEPTACLES. No property within this subdivision shall be used or maintained as a dumping ground for rubbish, trash, or other waste, nor shall yard waste be dumped upon vacant lots. All waste shall be kept in sanitary containers, and all incinerators or other equipment for the storage or disposal of such waste material shall be k pt in a clean sanitary condition. The Declarant or its agent shall have the right to enter i any grass, weeds, trees, etc., Declarant or its agent, to be this restriction, then the cost upon the lot until paid as her SECTION 63. OUT to receive direct broadcast sE eighteen inches (18") or less programming services via M television broadcast signals, transmission or receiving to) permission of the Declarant. receive the intended signal, 1 any lot or area to remove such waste or cut and. remove any lot or area deemed by public authority or the ightly. If the Declarant performs the work to comply with ill be borne by the lot owner and the cost shall be a lien after set forth. JDE ANTENNAS. Except for "dish" antennas designed lite service, including direct -to -home satellite service, diameter, antennas designed to receive video )S (wireless cable) and antennas designed to receive outside antennas or satellite dishes and no free standing s shall be erected on any Lot without the prior written ccept as may be otherwise reasonably required in order to antenna or satellite dish erected on any Lot shall be 17 affixed to the dwelling, shall be a color which blends with its surrounds, shall have a mast only as high as reasonably necessary to receive the intended signal and shall not be visible from any street. SECTION 64. EXTIERIOR PAINT COLORS. All exterior colors must be approved in writing by the D�clarant. SECTION 65. BOATS, TRAILERS TRACTOR-TRAILORS MOTORIMOBILE HOMES. No trailers, tractor -trailers, motor homes or mobile homes, or inoperable, uninsured, unlicensed vehicles shall be parked on or in front of any lot unless parked inside an enclosed garage area. All cars or other vehicles must be parked in the garage or on th driveway. Any vehicle parked in the driveway must be licensed, insured and operabl . SECTION 66. MAILBOXES. All mailboxes and posts must be uniform in design and color. Contact Rockford Partners, L.L.C. for the mailbox and post design. SECTION 67. UT'I ITY BUILDINGS OUTBUILDINGS SHEDS. Anyone desiring to place a utility building, shed or other outbuilding on a Lot must meet with the Declarant to obtain the Decl ant's express written approval of the location and design of such outbuilding. Declarant'3 written approval must be obtained prior to placing, erecting, or altering an outbuilding on any lot. All outbuildings must be constructed with substantially the same material nad with the same colors as the house on said Lot. No -prefabricated outbuildings shall be permitted within SUNSET REACH. SECTION 68. unless shielded from all SECTION 69. PL HOUSES. No play sets, s placed or build on any Lot SECTION 70. PRO must be buried underground this Declaration. Neither De in any manner for any defec- SECTION 71, ROA that have been or will be buill North Carolina Department o: may be petitioned by the Dev program once required occup; pavement until such time that are acquired by NC D.O.T. fo agreement to maintain said pa No trampolines shall be placed upon any Lot )h 1 J, N w1N G SETS, JUNGLE GYMS, PLAY sets, jungle gyms, play houses or similar items shall be )ut the prior written approval of the Declarant. 'ANE 'TANKS. Any propane tanks or other storage tanks ad the site must be properly landscaped in accordance with eloper, its subsidiaries, agents or assigns shall be held liable in the tank, site preparation, use or otherwise. , ) MAINTENANCE. All streets within the subdivision by the Developer are constructed and designed to meet Transportation (D.O.T.) Standards in order that said streets :loper for acceptance into the NC D.O.T. Maintenance ncy levels are reached. Developer shall maintain street Developer petitions for D.O.T. maintenance and the streets maintenance. Under no circumstances shall such ✓ement prohibit the Developer from seeking legal action to collect for damages to pavement or rights -of -way caused by negligence or willful destruction of others. SECTION 72 LOT 42. The current owners, heirs, and assigns of lot 42 shall not be subject to any of the restrictions or covenants herein, and shall not be required, at any time in the future, to pay any assessments to the association. However this lot shall enjoy all benefits and use of all common areas and facilities of Sunset Reach regardless of when built or acquired. The shall be no vote, at any time to alter this arrangement. This shall be appurtenant to 4nd run with this lot. SECTION 73. RIVtRFRONT LOT All lot owners shall follow NC D.O.T. guidelines in the maintenance of the portion of street right-of-way that connects their lot to the paved street, including but not limited to keeping that portio a of their lot in the right-of-way free of unauthorized landscaping, filling, grading, debris, objects and/or materials. All lot owners shall immediately comply with aq requests made by Developer on behalf of NC D.O.T. in order to get the streets accept d by NC D.O.T. for maintenance. Should any lot owner fail or refuse to comply with the Developer's requests :for removal of objects or improper landscaping, filling or grading within the right-of-way within the prescribed time established by Developer in a written request to the lot owner, Developer then reserves the r ght to remove said items or repair the landscaping, filling or grading to its original condition and shall place a lien on said property for all expenses incurred, including legal fees. Should any lot owner Dr owners interfere with Developer's petition for NC D.O.T. road maintenance, orshould they in any way obstruct the acceptance of the roads into the State road system, said owner or owners shall be liable for any and all expenses incurred by Developer, its successors and/or assigns, for court costs, attorneys fees, road maintenance expenses, and any other damages caused by such interference and/or obstruction. Furthermore, sai owner or owners, their successors and/or assigns, shall thereafter be fully responsibl for continuing road maintenance until such time as the roads are accepted by NC D.O.T. for maintenance. SECTION 1. ARC_ Committee consisting of thr replacements) by the Declai ARTICLE V CONTROL ITEUTURAL COMMITTEE. An architectural (3) or more persons shall be appointed (including their t to review building/development plans and initial 19 construction. At such time as or following notice in writing term is defined in the North C unable to perform such functi Directors of the Association. SECTION 2. PURI discretion to regulate the ex1 the site of all initial construc improvements thereon, inch enviromnental values and to natural vegetation and topog SECTION 3. PLAN istruction has been completed on Dwellings on all Lots, Declarant or Declarant's personal representative (as that lina General Statutes) that Declarant is unwilling or the Committee shall be appointed by the Board of SE. The Architectural Committee shall have sole tal design, appearance, use, location and the orientation on n and subsequent additions to all Lots and of ig but not limited to landscaping and exterior finishes and aintain a hannonious relationship among structures and the )hy. Fin (a) APPROVAL F INITIAL IMPROVEMENTS REQUIRED BY ROCKFORD PARTNERS,L.L.C. No site preparation or initial construction, erection, or installation of any improvements, including, but not limited to, Dwelling Units, outbuildings, driveways, fences, walls, swimming pools, tennis courts, signs, television antennas, mailboxes, pot lamr s and other structures, or additions, or excavation, or changes in grade shall be undertaken upon any Lot unless the plans and specifications therefore, showing the nature, kind, shape, height, materials, and location of the proposed improvements shall have beeti submitted to and expressly approved in writing by Rockford Partners, L.L.C. N9 approval shall be required, however, for any improvements made by the: D clarant. After the date of the c mpletion of the initial improvements to a Lot (which is herein defined as being the date of the first occupancy of the Dwelling Unit initially constructed on the Lot), plans and specifications for subsequent improvements shall be submitted for approval to the Architectural Committee, as herein provided in subparagraph (b) below, rather than to Rockford Partners, L.L.C. In the event of the dis olution of Rockford Partners, L.L.C. or its failure to act in the capacity herein provided, fhen at any time hereafter any approval as herein required to be obtained from Rockford P rtners, L.L.C. shall be obtained by the Architectural Committee as herein Rockford Partners, L and authorization to approve Association obtains control c specifically and definitively discretion, to approve Dwell: over to the Association, free the Association. in subparagraph (b) below. ..C. reserves the right, at its discretion, to retain full power he initial dwelling on lots not built upon at the time the the Covenants and Restrictions. Rockford Partners, L.L.C. ;serves the right to have exclusive authority, at its gs on Lots owned by it at the time the Covenants are turned rid clear from authority by the Architectural Committee or 20 (b) APPROVAL REQUIRED FROM ARCHITECTURAL COMMITTEE AFTER COMPLETION OF INITIAL IMPROVEMENTS. After the date of the completion of the initial improvements to a Lot (as defined in (a) above), no subsequent alteration o.: modification of existing improvements or construction, erection or installation of old itional improvements may be undertaken or allowed to remain without the review a d express approval in writing of the Architectural Committee. SECTION 4. EFFECT OF FAILURE TO APPROVE OR DISAPPROVE. In the event that Rockford Partners, L.L.C. or the Architectural Committee, as the case may be, fails to approve or disapprove any of the foregoing within thirty (30) days after plans and specification therefore have been submitted and received (receipt being hereinafter defined), approva will not be required, and the requirements of this Article shall be deemed to have beeri fully satisfied; provided, that the plans and specification required to be submitted shal not be deemed to have been received by an officer of Rockford Partners, L.L.C. or the Architectural Committee, as the case may be, if they contain erroneous data or fai to present full and adequate information upon which Rockford Partners, L.L.C. or he Architectural Committee, as the case may be, can arrive at a decision. For purposes of this Section 3, plans and specifications will not be dee.ned to have been "received" unless an officer of Rockford Partners, L.L.C. or a member of the Architectural Committee, as 1he case may be, either acknowledges in writing such receipt or the plans and specifications are sent by certified or registered mail to Rockford Partners, L.L.C. or a member of the Architectural Committee, as the case maybe, and a return receipt is received ack#owledging the receipt thereof by such member. Neither Declarant, nor any member or manager of the Declarant, nor any member of the Association's Board of Directors, nor any member of the Architectural Committee, shall be responsible or liablein any way for any defects in any plans or specifications approved by them, nor for any structural defects done according to such plans or specifications. Further, neith r Declarant, nor any member or manager of the Declarant, nor any member of the Association's Board of Directors, nor any member of the Architectural Committee, shall be liable in damages to anyone by reason of mistake in judgment, negligence, misfeasance, malfeasance or nonfeasance arising out of or in connection with the approval or disapproval or failure to approve or disapprove any such plans or specifications or the xercise of any other power or right provided for in this Declaration. Every person who submits plans or specifications for approval agrees, by submission of such plans and specifications, and every owner of any Lot agrees, that he or she will not bring any actic n or suit against Declarant, nor any member or manager of the Declarant, nor Rockford artners, L.L.C. or its subsidiaries, nor any member of the Association's Board of Direc ors or Architectural Committee, to recover any such damage. SECTION 5. RI(sH' have the right, at its election, JF INSPECTION. Declarant, its agents or assigns, shall enter upon any of the Lots in Sunset Reach during 21 preparation, construction, erection, or installation of any improvements to determine that such work is being performed in conformity with the approved plans and specification. If such work is not being perfoimed in conformity with the approved plans and specification, such work shal I immediately cease upon verbal or written notice by Declarant for approval and n work shall commence until such approval is expressly made in writing by Declarant. SECTION 6. MAINTENANCE., The maintenance of Lots and the Dwelling Units located thereon and other improvements constructed thereon shall be the duty and responsibility of the Owner of such Lot and shall not be the responsibility of Declarant or the Association. If, however, in the opinion of Declarant or the Architectural Committee or the Association any Owner shall fail to discharge his or her repair, maintenance or upkeep responsibilities in a responsible and prudent manner to a standard harmonious with that of other Lots in Sunset Reach, the Declarant, Architectural Committee or Association, at its discretion, and following ten (10) days' written notice to the Owner, may enter upon and make or cause to be made maintenance work or repairs as may be deemed by said persons to be reasonably required. Declarant, Architectural Committee or the Association, shall have an easement upon any lot for the purpose of accomplishing the foregoing. The costs incurred rendering such services plus a service charge of twenty percent (20%) of such costs, shall be added to and become a part of the assessments to which such Lot is subject. SECTION 7. ORIG: herein contained shall in any member of the Declarant to ci Lot, and no approval shall be Committee for any such consi �L IMPROVEMENTS BY DECLARANT. Nothing 7 prevent or interfere with the right of the Declarant or a truct the original improvements desired by them on any uired for Rockford Partners, L.L.C. or the Architectural tion. ARTICLE VI P AND VOTING RIGHTS ARTICLE II Section 1. Developer herein retains the right to annex additional property that may be after acquired into the Subdivision. No approval of the Association shall be required for such action, regardless of the time frame this may occur. Section 2. Developer Development at a later date w further action on the part of D of Association shall be require 'rein retains the right to create a Planned Unit h Subdivision shall automatically become a part of. No eloper or Association shall be required, and no approval to do so. 22 Section 1. Memberst is subjected by the Declara.ti< Association. Membership sb ownership of any Lot, which Ri membership. Class A. Class A Mei Members shall be enti required for membersl such interest or intereE exercised as such pers vote be cast with resin Class B. The sole Cla shall be entitled to fou for membership under cease and become con first of either of the fo Every person or entity who is an Owner of any Lot that to assessment by the Association shall be a Member of the I be appurtenant to and may not be separated from subject to assessments. The Association shall have two classes of voting bers shall be all Owners except the Developer. Class A ed to one vote for each Lot in which they hold the interest p by Section 1 above. When more than one person holds s in any Lot, the vote attributable to such Lot shall be us mutually determine, but in no event shall more than one to any such Lot. B Member shall be the Developer. The Class B Member votes for each Lot in which it holds the interest required section 1 of the Article. The Class B membership shall �rted to Class A membership upon the occurrence of the 3win2 two events: 1. When the total votes outstanding in the Class A membership equal or exceed the total votes outstanding in the Class B membership (Lots shall include any additional phases which Developer might bring under the terms of this agreement) or 2. Three years the Developer t om the date of the first sale of a lot in the development by an individual lot owner. ARTICLE VII ASSESSMENTS SECTION 1. CREATION OF THE LIEN AND PERSONAL OBLIGATION FOR ASSESSMENTS. The Owner of any Lot subject to the provisions of this Declaration, by acceptance of a deed therefore, whether or not expressed in any such deed, is deemed to covenant and agree to pay to the Association: (a) Annual (b) Special asse fixed, established, or charges as herein provided; tents for capital improvements, such assessments to be collected from time to time as hereinafter provided,; and 23 (c) To the appropriate governmental taxing authority, a pro rata share of ad Valorem taxes levied against the Common Elements, and a pro rata share of Assessments for public improvements to or for the benefit of the Common Elements if the Association shall default in the payment of either or both for a Period of six (6) mont s. All annual and special assessments on a Lot, together with interest thereon and costs of collection thereof as liereinafter provided, shall be a charge on the land and shall be a continuing lien upon the property against which each such assessment is made. Each such assessment, together with interest and costs, and reasonable attorney's fees (as provided in North Carolina G neral Statutes 6-21.2) incurred by the Association in collecting delinquent assessments shall also be the personal obligation of the person or entity who was the owner of s ach Lot at the time when the assessment became due. The personal obligation of any Owner for delinquent assessments shall not pass to his successors or assigns in the tit e unless expressly assumed by such successor or assign. SECTION 2. PURPOSE OF (a) The assessnien s levied by the Association shall be used exclusively for the purposes of the general en iancement and promotion of Sunset Reach, including without limitation the recreation, health, safety and welfare of the Owners in Sunset Reach, the enforcement of thee covenants and the rules of the Association, and in particular, the improvement a d maintenance of the Common Elements, including without limitation, the maintenance of any dedicated streets which are not accgpted for maintenance by the appropriate governmental authority, the maintenance of entrance ways, landscaping and lightingof Common Elements, the cost of operating, maintaining and repairing any offsite septi pump lines, street lights or signs created by the Association or the Declarant, I he payment of taxes assessed against the Common Elements, the payment of assessments for public capital improvements levied Against the Common Elements, the maintenance of liability and other insurance and for such other needs consistent with this Dec aration as may arise, the employment of attorneys and other agents to represent the Association when necessary, the provision of adequate reserves for the replacement of capital improvements, the payment of management fees and such other needs as may arise. In addition, the assessments shall be used as required or deemed appropriate by the ssociation for the repair and/or maintenance of the permanent wet detention or re ention ponds. Repairs and maintenance shall include, but not be limited to, the costs of repairs, replacements and additions, the cost of labor, equipment, materials, management and supervision. Assessments shall also provided for the procurement and maintenance of insurance in accordance with the By -Laws of the Association, the provision of dequate reserves for the replacement of major structures incorporated into the permane t wet detention or retention ponds, and such other needs as may arise. (b) All monies collected by the Association shall be treated as the separate property of the Association, and such monies may be applied by the Association to the payment of any expense of op rating and managing Sunset Reach, or to the proper 24 undertaking of all acts and di, Articles of Incorporation and assessments are paid to the A with monies paid to the Asso, common surplus, including o profits derived therefrom sha: no Member of the Associatio any manner transfer his mem Lot. When an Owner shall cf divestment of ownership of I required to account to such O or which may have been paid Owner has paid to the Associ which may be used in the ope SECTION 3. ies imposed upon it by virtue of this Declaration, the he By -Laws of the Association. As monies for any sociation by any Owner, the same may be commingled iation by the other Owners. Although all funds and ier assets of the Association, and any increments thereto or be held for the benefit of the members of the Association, shall have the right to assign, hypothecate, pledge or in ership interest therein, except as an appurtenance to his ise to be a member of the Association by reason of his s Lot, by whatever means, the Association shall not be vner for any share of the funds or assets of the Association, o the Association by such Owner, as all monies which any tion shall be and constitute an asset of the Association and management of Sunset Reach. (a) To and including December 31, 2008, the annual assessment for each Lot shall be $1200.00 and shall be collected annually at the time of the conveyance of each Lot by Declarant. There shall be no assessment for any Lot owned by Declarant. Thereafter, the maximum annual assessment shall be established by the Board of Directors as an amount reaso tably and prudently necessary to fund the Association's performance of its duties under this Declaration, under any agreement to which the Association is a party, and under any applicable law. The maximum annual assessment may be increased by the Boar I of Directors without approval by membership by an amount not to exceed ten per ent (10%) of the maximum annual assessment of the previous year; and (b) After December 31, 2008, the annual assessment may be increased without limit by the assent oftwo-thirds (2/3) of the votes of the members who are voting in person or by proxy at a meeting called for such purpose. (c) At any at an ai SECTION 4. SPEC portion of the Common Elen guests, tenants, licensees, agf authorized to repair such dan necessary for such repairs, la become a special assessment SECTION 5. SPEC IMPROVEMENTS. In adc Association may levy one or purpose of defraying the cost the Board of Directors may fix the annual assessment t not in excess of the maximum. ES In the event any is damaged or destroyed by an Owner or any of his or family members, the Association is hereby ;d area in a good and workmanlike mamner. The amount and material including a twenty percent (20%) fee, shall in the Lot of said Owner. XL ASSESSMENT FOR CAPITAL .ion to the annual assessments authorized above, the ..-lore special assessments applicable to that year for the of construction or reconstruction, unexpected repair, or 25 replacement of a capital imp necessary fixtures and perso: assessment shall have the as: voting in person or by proxy the foregoing, the Associatic defray costs necessary to ma Elements. vement upon the Common Elements, including the 1 property related thereto, provided that any such it of two-thirds (2/3) of the votes of the Members who are a meeting duly called for this purpose. Without limiting may levy special assessments that may be necessary to Lain the water quality of any ponds on the Common SECTION 6. NOTICE AND QUORUM FOR ANY ACTION AUTHORIZED UNDER SECTIONS 3 AND 5. Written notice of any meeting called for the purpose of taking any action authorized under Sections 3 or 5 shall be sent to all Members not less than fifteen (15) days nor more than sixty (60) days in advance of the meeting. At the first such in eting called, the presence of Members or of proxies entitled to cast fifty percent (50%) of all the votes of the membership shall constitute a quorum. If the required quorum is not present, another meeting may be called subject to the same notice requirement, and no quorum shall be required at the subsequent meeting. No such subsequent meeting shall be 1peld more than sixty (60) days following the preceding meeting. SECTION 7. EFFECT OF NONPAYMENT OF ASSESSMENTS; REMEDIES OF THE ASSOCIATION. Assessments authorized by this Declaration shall be due and payable on the dates established by the Board of Directors from time to time. Fees, fines, and other cliarges authorized by this Declaration shall be due and payable thirty (30) days after written notice thereof from the Association to an Owner. Any assessment, fee, fine, or )ther charge not paid within thirty (30) days after the due date shall bear interest from the due date at the rate of twelve percent (12%) per annum. The Association may bring an action at law against the Owner personally obligated to pay the same or foreclose the lien created herein against the property in the same mamler as prescribed by the laws of the State of North Carolina for the foreclosures of Deeds of Trust. Interest, costs and reas nable attorney's fees for representation of the Association in such action or foreclosure hall be added to the amount of such assessment. No Owner may waive or otherwise esca e liability for the assessment provided for herein by non- use of the Common Elements or abandonment of his Lot, nor shall damage to or destruction of any improvem nt on any Lot by fire or other casualty result in any abatement or diminution of tl assessments provided herein. SECTION 8. EFFE T OF DEFAULT IN PAYMENT OF AD VALOREM TAXES OR ASSESSMENTS FOR PUBLIC IMPROVEMENTS BY ASSOCIATION. Upon defa It by the Association in the payment to the governmental authority entitled thereto of any assessments for public improvements or ad valorem taxes levied against the Common E ements, which default shall continue for a period of six (6) months, each Lot Owner in S nset Reach shall become personally obligated to pay the taxing or assessing govermne tal authority a portion of such unpaid taxes or assessments in an amount determined by d viding the total taxes and/or assessments due the governmental authority by thel total number of Lots in Sunset Reach. If such sum is not paid by the Lot Owner within hirty (30) days following receipt of notice of the amount 26 due, then such sum shall beco ne a continuing lien on the Lot of the then Owner, his heirs, devisees, personal representatives and assigns, and the taxing or assessing governmental authority may either bring an action at law or may elect to forec]ose the lien against the Lot of the O er. SECTION 9. SUBORDINATION OF THE LIEN TO MORTGAGES AND AD VALOREM TAXES._ T ie lien of the assessments provided for herein on any Lot shall be subordinate to the liei L of any first mortgage or first deed of trust on such Lot, and subordinate to ad valorerr taxes. The sale or transfer of any Lot shall not affect the assessment lien; provided, ho vever, that the sale or transfer of any Lot pursuant to a. decree of foreclosure on a first mortgage or first deed of trust thereon or any proceeding in lieu of foreclosure thereof shall extinguish the lien of such assessments, fees, fines or other charges as to payments which became due prior to such sale or transfer. No sale or transfer shall relieve such Lot from liability for any assessments, fees, fines or other charges thereafter becoming due or from the lien thereof, but the liens provided for herein shall continue to be subordin e to the lien of any first mortgage or first deed of trust. SECTION 10. EXE PT PROPERTY. Any portion of Sunset Reach dedicated to, and accepted by, a local p blic authority and all properties owned by a charitable or nonprofit organization exemp from taxation by the laws of the State of North Carolina shall be exempt from the assessments created herein; provided, however, no land or improvements devoted to use s a Dwelling shall be exempt from said assessments. SECTION 11. RESI in establishing the annual bud Reach, may designate therein replacement or any extraordir the Common Elements (Capil Capital Improvement Fund, sr and maintain a sum reasonabl extraordinary repairs or mains the Capital Improvement Fun Association and such money Common Elements. Any inte may, in the discretion of the I current operation and mainter Fund, and any increments the benefit of the members of the right to assign, hypothecate, > therein, except as an appurten Fund shall not be subject to v SECTION 12. EN' 500 dollars per Lot payable and by any party to whom t WE FUND. The Board of Directors of the Association, -t for operation, management and maintenance of Sunset sum to be collected and maintained as a reserve fiend for ry repairs or maintenance of any capital improvements to . Improvement Fund). The amount to be allocated to the 11 be established by the Board of Directors so as to collect necessary to anticipate the need for replacements or aance in Common Elements. The amount collected for may be maintained in a separate account by the .all be used only to make capital improvements to the -st earned on monies in the Capital Improvement Fund ,ard of Directors of the Association, be expended for nce. Although the funds held in the Capital Improvement to or profits derived therefrom, shall be held for the Lssociation, no member of the Association shall have the ,dge or in any manner transfer his membership interest Ice to his Lot. The funds held in the Capital Improvement hdrawal by an Owner. X ASSESSMENT. There shall be a one-time entry fee of Association on the day of conveyance by the Developer, property is transferred thereafter. 27 SECTION 13. PRi Dollars placed in escrow w: construction is commenced reftinded to buyers. SECTION 1. WALI be subject to such easements facilities, gas liens, telephone cables, and other utilities, ing: established or hereinafter are or by the recording of a plat d Association, and the Declarar power and authority to grant the Common Elements. SECTION 2. hereby reserves such reasonably necessary for (i) t; including, without limitation, additional property and (ii) tli additional property, should. D TRESS ENERGY FEE. There shall be a fee of 2380 the developer at such time as the lot is purchased. If thin 48 months of the time of purchase, this money shall be ARTICLE VIII EASEMENTS i, DRIVES, UTILITIES, ETC. Common Elements shall >r walkways, water lines, sanitary sewers, stone drainage end electric power lines, television antenna lines and ;ss, egress and regress and otherwise as shall have been 3tablished by the Declarant, whether by express easement dication or otherwise establishing an easement. The so long as it owns a Lot in Sunset Reach, shall have the id establish further easements upon, over, under and across LINTS S RESERVED BY DECLARANT. Declarant > on, across and over the Common Elements as shall be exercise by Declarant of any right herein reserved, ►eclarant's right, should Declarant elect, to annex development by Declarant, its successors and assigns, of Jarant elect not to annex the additional property, including, without limitation, asements for ingress, egress and regress over private roads and streets now or hereafter erected in Sunset Reach and easements for the use of all utility lines, fixtures and/or their connections located within the Common Elements for the purpose of providing water, light, power, telephone, sewage and sanitary service to the additional properties. Declarant further reserves unto itself, its successors and assigns, and its agents, a perpetual, alienable, and reaso able easement or right to go on, over and under any bermes and the entrance area, to erect, maintain, and use suitable equipment to erect and maintain the bermes and entrance. Such rights shall not create any obligation on the part of the Developer to provide orlmaintain such bermes or entrance. Declarant reserves un and/or assigns, the perpetual a any Lot or Lots within the sub fields within the subdivision C render such Lot unsuitable for County ordinances. itself, the Homeowners Association, and its successors ad inalienable right to establish additional easements upon division for access to and use of any emergency septic ommon Elements, provided that such easement does not building pursuant to these Restrictions and to Guildford PTO Declarant reserves ur associated with all riverfront system that shall be in the rix SECTION 3. EASET UTILITY COMPANIES. A state or public utilities servin€ Common Elements hereby or utility meters, maintaining ani and acting with other purpose without limitation, police and SECTION 4. itself, it successors and/or assigns, all riparian rights is for the purposes of constructing and maintaining a dock ian corridor directly in front of some or all of these lots. R GOVERNMENTAL BOD i easement is hereby established for county, municipal, Sunset Reach, their agents and employees over all .ereafter established for setting, removing, and reading replacing utility or drainage facilities and. connections, consistent with the public safety and. welfare, including, ire protection and collection of garbage. Declarant and the Association shall each have the right to erect within I he Common Elements subdivision signs and landscaping and lighting surrounding same. Declarant hereby reserves unto itself and grants, gives and conveys to the Architectural Committee and the Association a perpetual, non- exclusive easement over the portions of Lots to maintain, repair, and replace the subdivision signs which may e located thereon, and the lighting fixtures and landscaping surrounding same. The Association shall be responsible for maintaining, repairing and replacing any such signs, landscaping and lighting and the costs of such maintenance, repair and replacement shall be part of the common expenses of the Association, payable by the Owners. In addition to the easements reserved and granted above as to the portion of Lots designated "sign ease ent," Declarant hereby reserves unto itself and gives, grants and conveys to the Association the right of ingress, egress and regress over other portions of such Lots as shall be reasonably necessary to effectuate the purposes stated above. The easements hereby granted shall run with the land in perpetuity and be binding upon and inure to the benefit 9f all persons and entities now owning or subsequently acquiring all or a part of the P operty. RIGHTS SECTION 1. ENT] "Institutional Lender" as the and loan associations, insura affording loans secured by fi governmental guarantors. SECTION 2. OBLI LENDERS. So long as any shall be the Owner of any Lc (a) To inspect the bo hours and to be furnished wi ARTICLE IX VED UNTO INSTITUTIONAL LENDERS 2� IVINN1I U HAG INS'1ITUJONAL LENDERS. in is used herein shall mean and refer to banks, savings companies or other firms or entities customarily liens on residences, and eligible insurers and OF ASSOCIATION TO INSTITUTIONAL stitutional lender shall hold any first lien upon any Lot, or such Institutional Lender shall have the following rights: cs and records of the Association during normal business at least one (1) copy of the annual financial statement and 29 report of the Association Board of Directors of the by April 15 of each calen (b) to be given notic membership to be held for t] Declaration. of Covenants, C By -Laws of the Association Association or the effectuati the Association and assume (c) To be notified of insurance policy or fidelity by a certified public accountant designated by the .on, such financial statement or report to be furnished year. by the Association of the call of any meeting of the purpose of considering any proposed amendments to this zditions and Restrictions of the Articles of Incorporation or r of any proposed abandonment or termination of the i of any decision to terminate professional management of lf-management by the Association. lapse, cancellation of material modification of any maintained by the Association. (d) To be given notice of any delinquency in the payment of any asses,':�ment or charge (which delinquency remains uncured for a period of sixty (60) days) by any Owner owning a Lot encui nt ered by a mortgage held by the Institutional Lender, such notice to be given in writingand to be sent to the principal office of such Institutional Lender, or to the place whic it may designate in writing. SECTION 3. RED Whenever any Institutional I it shall furnish written notice address shown in the Article: any such Institutional. Lender such Institutional Lender and reports or information are to SECTION 1. ENF( Committee, or any Owner, si equity, all restrictions, condi hereafter imposed by the pro shall be assessed interest at t should legal action be taken. Committee or by any Owner in no event be deemed a wai• fail to comply with these De( Architectural Committee or t member of the Board of Dire make or cause to be made su ender desires to avail itself of the provisions of this Article, thereof to the Association by CERTIFIED MAIL at the of Incorporation identifying the Lot or Lots upon which holds any first lien or identifying any Lot or Lots,, owned by such notice shall designate the place to which notices, )e given by the Association to such Institutional Lender. ARTICLE X GENERAL PROVISIONS .CEMENT. The Declarant, Association, Architectural 11 have the right to enforce, by any proceeding at law or in ,ns, covenants, reservations, liens and charges now or 3ions of this Declaration. The non -compliant Lot owner maximum legal rate, attorney's fees and court costs ailure by the Declarant, Association, Architectural enforce any covenant or restriction herein contained shall r of the right to do so thereafter. Should any Lot Owner rations following ten days written notice by Declarant, the Association, Declarant, the Committee members or a )rs have an easement to and may enter upon any Lot to work or repairs to create compliance with these 30 Declarations. The costs incra (20%) of such costs, shall be such Lot is subject. SECTION 2. TERN conditions and restrictions of inure to the benefit of and be respective legal representative years from the date this Dech automatically extended for su amended as hereafter provide Declaration may be amended sale of Lots commences, this the Declarant and not less tha amendment purporting to revs be effective unless executed I or ownership of any permane diversion bermes shall be effe office having jurisdiction for obligation to pay ad valorem lien for the payment thereof e SECTION 3. AT commercial property and Declarant at its sole disci SECTION 4. CONI this Declaration and the Byla shall control. In the event of Bylaws of the Association an provisions of the Articles of SECTION 5. SEVE restrictions by judgment or a shall remain in full force and SECTION 6. MIN( may be waived by Declarant written instrument, however not constitute a waiver.. SECTION 7. IN7 DECLARANT, ITS SUC( INTERPRETATIONS AS COVENANTS. for such work plus a service charge of twenty percent -d to and become a part of the assessments to which MINI) AIVIE-NDIVIENT BY OWNERS. The covenants, ds Declaration shall run with and bind the land and shall iforceable by the Association, or any Owner, their , heirs, successors and assigns, for a term of thirty (30) rtion is recorded, after which time said covenants shall be ;essive periods of ten (10) years unless terminated or Prior to the sale of any Lot by the Declarant, this r revoked by Declarant in its sole discretion. After the eclaration may be amended by an instrument signed by sixty-seven percent (67%) of the Lot Owners. No :e or curtail any right herein conferred to Declarant shall Declarant, and no amendment relating to the maintenance wet detention or retention ponds, rock check dams or Live unless reviewed and approved by the governmental atershed protection and no amendment shall alter any Yes or assessments for public improvements or affect any ablished herein. TION. Additional residential, multi family, or )n Elements may be annexed to the Properties by In the event of any irreconcilable conflict between s of the Association, the provisions of this Declaration i irreconcilable conflict between this Declaration or the the Articles of Incorporation of the Association, the 3orporation shall control. 3ILITY. Invalidation of any one of these covenants or order shall in no way affect any other provisions which VIOLATIONS. Minor violations of these covenants the Association or their agent or successors or assigns, by •bearance of any of Delclarants or Association rights shall ATIONS OF THESE SORS AND/OR ASSIGNS SHALL MAKE ALL FINAL THE MEANING AND INTENT OF THESE 31 SECTION 8. CON' and contracts authorized by i management of Sunset Reac. as though such undertakings duly elected by the memberE undertakings and contracts a exercised by the Board of Di Declaration, the Articles of i Section 9. Each of th any plat is a private street, an recreational facility, and oche amenity and neither the Deve Developer with respect to the dedication to the public of an amenity other than as reflecte of said streets and areas desig and assigns, to the persons w] the members and Owners of occupants of any residential t may be erected within the boi may be annexed as provided the use of which shall be subj the Association, if the Associ Developer may at any time d( decide to not dedicate streets ZACT RIGHTS OF ASSOCIATION. The undertakings initial Board of Directors (including contracts for the shall be binding upon the Association in the same manner 1d contracts had been authorized by any Board of Directors p after recording of this Declaration, so long as such within the scope of the powers and duties which may be ctors of the Association in accordance with this tion and the Bylaws. streets in the Subdivision now or hereafter designated on every park, stream, body of water, common area, amenity within the Subdivision is a private park, facility or )per's recording of any such plat nor any other act of the )roperty is, or is intended to be, or shall be construed, as a said street, park, common area, recreational facility and therein. An easement for the use and enjoyment of each .ated as parks is reserved to the Developer, its successors are, from time to time, members of the Association; to ty recreational facility; and to the residents, tenants and d1dings and all other kinds of residential structures that idaries of the Subdivision and any additional property that )ove and to the invitees of all the aforementioned persons; et to such rules and regulations as may be prescribed by Lion is the owner of the facility or property involved.. The licate the streets to a public authority if it so desires, or i order to be able to construct a gated community. Section 10. The Devloper herein shall not in any way or manner be liable or responsible for any violation f these restrictions by any person other than itself. Section I.I. In the evc nt that any of the provisions hereof are declared void by a court of competent jurisdictio by reason of the period of time herein stated for which the same shall be effective, then iii that event such term shall be reduced to a period of time which shall not violate the rul against perpetuities or any other law of the State of North Carolina, and such provision hall be fully effective for said reduced period of time. IN WITNESS Declaration to be duly )F, the undersigned Declarant herein has caused this this the day of , 2008. 32 NORTH CAROLINA NEW HANOVER COUNTYI I, certify that he is President of Rockford P� authority duty given and as th signed by him in its name on' WITNESS my hand My Commission Expires: , a Notary Public, do hereby personally appeared before me and aclulowledged that tners, L.L.C., a North Carolina Corporation, and by act of the corporation, the foregoing instrument was half of the corporation. seal this day of 33 Notary Public 2008.