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HomeMy WebLinkAboutDocumentation_Regular_Tab 07D_6/13/2002i> :Anr t ) ,/'�N INTEROFFICE MEMORANDUM TO: MR. MICHAEL R. COUZZO, JR., VILLAGE MANAGER FROM: JEFFERY C. NEWELL, COMMUNITY DEVELOPMENT SUBJECT: TENTATIVE/FINAL PLAT APPROVAL "TEQUESTA TRACE" DATE: 6/ 3/2002 Subdivision Regulations Article II, section 4(4) set forth the guidelines for submission of a "Tentative Final" and "Final Plat" approval. Tequesta Trace hereby comes before the Village Council for approval of the Tentative/Final Plat Approval based on the following criteria: 1) Submission of a completed plat meeting the criteria as set forth in Article III, Section 2. 2) Submission of a final draft of the "Declarations of Covenants and Restrictions". 3) Submission of a Surety Bond in the amount of 110% of construction costs. (this bond permits the applicant to seek approval to record plat with the condition that a certificate of occupancy cannot be issued until the improvement are completed and accepted by the village of Tequesta). 4) Final review by staff. Staff has review all the submitted material and has found that the submitted plat has met the requirements of the subdivision regulations. All the concerns of the Village of Tequesta have been resolved and are stated in the declarations. Staff recommendation of approval is conditioned on the following: 1) Meeting the criteria as outlined in Article II, section 5(1). The deposit of the surety bond with the Village of Tequesta. This bond shall be deposited with the Village prior to the June 13, 2002 Council meeting. 2) Upon completion and acceptance of the remaining improvements, the Village of Tequesta will be able to issue certificate of occupancies. The remaining improvements consists of sidewalks, street lighting, final lift of asphalt, remaining curbing and entry off of Old Dixie Highway, and other improvements not listed. The subdivision regulations provide the developer with a "fast -track" procedure after the approval of the tentative final plat. This is located in Article II, Section 5(1) "procedure following tentative approval of the final plat by the village council". After the approval of the "tentative" plat the developer has two tracks to choose from, they are as follows: /"\ 1) The installation of all the improvements to the site. The developer cannot apply for the final plat approval until the Village of Tequesta has accepted all the improvements. 2) "Fast -track" [Article II, section 5(1)] — the developer deposits a surety bond in the amount of 110% of the costs to install the improvements to the site. This will allow the developer to proceed to the approval of the "final plat" and enable the recording of the plat into the public records of Palm Beach County. There is a condition that is placed on this approach. No certificate of occupancy can be issued until all the improvements to the site have been installed and accepted by the Village of Tequesta. The Village Council, at their discretion, may combine the "tentative/final" plat approval that is accompanied with the receiving of the Surety Bond. Staff recommends the approval of the "tentative/ final plat" based on the conditions listed on page one (1) of this memo. Staff is aware of the completion and acceptance of the water, sewer, and utilities improvements. The surety bond is in place to cover the remaining improvements. Centex Homes is in full knowledge of the conditions that apply to this arrangement. Therefore, staffs recommends the approval of the tentative/final plat and allow the developer to record the plat into the public records of Palm Beach County. n 2 SUBDIVISION BOND Bond No. 6167446 NOW ALL MEN BY THESE PRESENTS, that we CENTEX HOMES, A Nevada General Partnershi as Principal, and SAFECO INSURANCE COMPANY OF AMERICA authorized to do business in the State of FLORIDA OF TEQUESTA ,as Surety, are held and firmly bound unto VILLAGE as Obligee, in the penal sum of One Hundred Nine Thousand Three Hundred Eighty Nine and 31/100 - - - - - - - - - - - - - - - - - - - - ---------------------------------------------($109,389.31 ) DOLLARS, lawful money of the United States of America, for the payment of which well and truly to be made, we bind ourselves, our heirs, executors, administrators, successors and assigns, jointly and severally, firmly by these presents. WHEREAS, CENTEX HOMES, A Nevada General Partnershi has agreed to construct in TEQUESTA TRACE I the rollowing improvements:_ STREET LIGHTING, PAVING, CURBS, SIDEWALKS AND PAVEMENT MARKING & SIGNING NOW, THEREFORE, THE CONDITION OF THIS OBLIGATION IS SUCH, that if the said Principal shall construct, or have constructed, the improvements herein described and shall save the Obligee harmless from any loss, cost or damage by reason of its failure to complete said work, then this obligation shall be null and void; otherwise to remain in full force and effect. Signed, sealed and dated this N 31 ST day of M , 2002 CENTEX HOMES, A Nevada General Partnership Principal SAFECO INSURANCE COMPANY OF AMERICA By: BRIDGETTE S. JACKSON Attorney -in -Foci S-3689/GEEF 2/98 —_,_ a ' 1 ( I-n, 0 COUNTERSIGNED BY:1��--R- f POWER Ca S A F E C o® OF ATTORNEY SAFECO INSURANCE COMPANY OF AMERICA GENERAL INSURANCE COMPANY OF AMERICA HOME OFFICE: SAFECO PLAZA SEATTLE, WASHINGTON 98185 No. 7386 .OW ALL BY THESE PRESENTS: That SAFECO INSURANCE COMPANY OF AMERICA and GENERAL INSURANCE COMPANY OF AMERICA, each a Washington corporation, does each hereby appoint •'•"'"•'LAWRENCE W. WALDIE; CARMEN MIMS. BRIAN M. LEBOW; DEBORAH GRIFFITH; ALLYSON DEAN; BRIDGETTE S. JACKSON; Dallas, Texas••"""' its true and lawful attorney(s)-in-fact, with full authority to execute on its behalf fidelity and surety bonds or undertakings and other documents of a similar character issued in the course of its business, and to bind the respective company thereby. IN WITNESS WHEREOF, SAFECO INSURANCE COMPANY OF AMERICA and GENERAL INSURANCE COMPANY OF AMERICA have each executed and attested these presents this Ist day of June R.A. PIERSON, SECRETARY MIKE M PGAVICCK, PRESIDENT CERTIFICATE Extract from the By -Laws of SAFECO INSURANCE COMPANY OF AMERICA and of GENERAL INSURANCE COMPANY OF AMERICA: 2001 "Article V, Section 13. - FIDELITY AND SURETY BONDS ... the President, any Vice President, the Secretary, and any Assistant Vice President appointed for that purpose by the officer in charge of surety operations, shall each have authority to appoint individuals as attomeys-in-fact or under other appropriate titles with authority to execute on behalf of the company fidelity and surety bonds and other documents of similar character issued by the company in the course of its business... On any instrument making or evidencing such appointment, the signatures may be affixed by facsimile. On any instrument conferring such authority or on any bond or undertaking of the company, the seal, or a facsimile thereof, may be impressed or affixed or in any other manner reproduced; provided, however, that the seal shall not cessary to the validity of any such instrument or undertaking." r Extract from a Resolution of the Board of Directors of SAFECO INSURANCE COMPANY OF AMERICA and of GENERAL INSURANCE COMPANY OF AMERICA adopted July 28, 1970. "On any certificate executed by the Secretary or an assistant secretary of the Company setting out, (i) The provisions of Article V, Section 13 of the By -Laws, and (ii) A copy of the powerof-attomey appointment, executed pursuant thereto, and (iii) Certifying that said power-of-attomey appointment is in full force and effect, the signature of the certifying officer may be by facsimile, and the seal of the Company may be a facsimile thereof." I, R.A. Pierson, Secretary of SAFECO INSURANCE COMPANY OF AMERICA and of GENERAL INSURANCE COMPANY OF AMERICA, do hereby certify that the foregoing extracts of the By -Laws and of a Resolution of the Board of Directors of these corporations, and of a Power of Attorney issued pursuant thereto, are true and correct, and that both the By -Laws, the Resolution and the Power of Attorney are still in full force and effect. IN WITNESS WHEREOF, I have hereunto set my hand and affixed the facsimile seal of said corporation this day of SEAL )RIA x R.A. PIERSON, SECRETARY S-0974/SAEF 2/01 0 A registered trademark of SAFECO Corporation 8/1/01 PDF CENTEX HOMES • 8198 Jog Road, Suite #200 • Boynton Beach, FL 33437 • Phone: (561) 536-1031 • Fax: (561) 536-1060 • MEMO Date: 6/3/02 To: Jeff Newell Re: TequestaTrace From: Richard Reace cc: Michael Nisenbaum As per your request, enclosed is the Tequesta Trace Subdivision Bond. Please let me know if you need any additional information for the approval of the plat. Thank you SCHNARS ENGINEERING CORPORATION 951 Broken Sound Parkway, Suite 108 - Boca Raton, Florida 33487 Tel: (561) 241-6455 Fax: (561) 241-5182 3ermit No. Schnars Job No.: 00-136 Prepared by: Jim Mahannah Control No.: Lender: Developer: Centex Homes Tequesta Trace Plat Bond Estimate Original Cost Estimate DESCRIPTION I Street Lighting Street Lights SUBTOTAL ORIGINAL QUANTITY UNITS UNIT TOTAL PRICE LS $25,000.00 $25,000.00 $25,000.00 SCHNARS ENGINEERING CORPORATION 951 Broken Sound Parkway, Suite 108 - Boca Raton, Florida 33487 Tel: (561) 241-6455 Fax: (561) 241-5182 - ermit No. Schnars Job No.: 00-136 Prepared by: Jim Mahannah Control No.: Lender: Developer: Centex Homes Tequesta Trace Plat Bond Estimate Original Cost Estimate DESCRIPTION QUANTITY UNITS UNIT TOTAL PRICE IL Paving Curbs, Sidewalk, etc. 3/4" Type !!I Asphalt 5,793 SY $2.50 $14,482.50 Pavers 150 SY $27.00 $4,050.00 Types Curb 1,000 LF $7.00 $7,000.00 Type "F" Curb &Gutter 110 LF $8.00 $880.00 4" Conc. Sidewalks 7,819 SF $2.25 $17,592.75 6" Conc. Sidewalks 2,520 SF $3.00 $7,560.00 12" Header Curb 276 LF $5.00 $1,380.00 Sawcut and tie into exisitng asphalt 1 EA $1,500.00 $1,500.00 Concrete Wheel Stops 45 EA $15.00 $675.00 SUBTOTAL $55,120.25 r. SCHNARS ENGINEERING CORPORATION 951 Broken Sound Parkway, Suite 108 - Boca Raton, Florida 33487 Tel: (561) 241-6455 Fax: (561) 241-5182 -3ermit No. Schnars Job No.: 00-136 Prepared by: Jim Mahannah Control No.: Lender: Developer: Centex Homes Tequesta Trace Plat Bond Estimate Original Cost Estimate DESCRIPTION QUANTITY UNITS UNIT TOTAL PRICE 111. Pavement Marking & Signing 6" Double Thermoplastic (Yellow) 300 LF $0.75 $225.00 6" Solid Thermoplastic (White) 1,253 LF $0.40 $501.20 6" Solid Thermoplastic (Yellow) 20 LF $0.40 $80.00 6" Solid Thermoplastic (Blue) 5 0 LF $0.40 $20.00 Blue Painted H.C. Symbol 2 EA $75.00 $150.00 24" Stop Bar 120 LF $2.25 $270.00 Directional Arrows 1 EA $75.00 $75.00 Stop Signs R1-1 10 EA $350.00 $3,500.00 D-3 Street Signs 10 EA $250.00 $2,500.00 Reflective Pavement Markers 28 EA $2.50 $70.00 SUBTOTAL $7,391.20 SCHNARS ENGINEERING CORPORATION 951 Broken Sound Parkway, Suite 108 - Boca Raton, Florida 33487 Tel: (561) 241-6455 Fax: (561) 241-5182 'ermit No. Schnars Job No.: 00-136 Prepared by: Jim Mahannah Control No.: Lender: Developer: Centex Homes Tequesta Trace Plat Bond Estimate Original Cost Estimate DESCRIPTION TOTAL SUMMARY I. Street Lighting $25,000.00 II. Paving, Curbs, Sidewalk, etc. $55,120.25 III. Pavement Marking & Signing $7,391.20 SUBTOTAL $87,511.45 TOTAL BOND AMOUNT = SUBTOTAL X 125% $109,389.31 James W. Mahannah Date Florida P.E. No. 47066 • Loxahatchee River District 2500 Jupiter Park Drive, Jupiter, Florida 33458-8964 Telephone (561) 747-5700 Fax (56t) 747-9929 e-mail: osprey@ loxahatcheeriver.org Celebrating Richard C. Dent, Executive Director 30 .Years May 29, 2002 Mr. Jeffery C. Newell Director of Community Development Village of Tequesta Post Office Box 3273 Tequesta, Florida 33469-0273 Re: Tequesta Tract Sanitary Sewer System Award Winning Regional Wastewater Fetcility Best in Nation. E.P.A. Best in State. D.E.P. Dear Jeff: Be advised that the District performed a final inspection on the above referenced sanitary sewer system. All items were found to be in substantial compliance with our construction standards and the system was approved on April 29, 2002 The Palm Beach County Health Department released the system for service on May 6, 2002. If you require any additional information, please feel free to call me at my office. Very truly yours, Paul P. Brienza, P.E. Director of Engineering Services PPB/lml Eng/Gen/Newell Loring E. "Snag" Holmes Matt It. Rostock Joseph O. Ellis Richard C. Sheehan Sawyer Thompson, Jr. Board Member Board Member Chairman Board Member Board Member John 0. Ai--O"i• dvt. Job Hwfi May 6, 2002 Richard C. Dent III, Executive Director Loxahatches ftiverEronmental Contras District 2500 Jupiter Park D Jupiter FL 33458 PROJECT: Tequesta Trace sEWER PERMrr NO.; 138774-068-OWC Dear Mr. Dent is � leasE cad roiect is hereby released for service to watettle r and/or sewage system has' been The referee pthe based on certification by the en9mance with plans previously approved by this agency. constructed in subsr The system is released to the full extent of the approved plans. Sincerely. For the Division Director Division of Environmental Health & Engineering James Holland Environmental Engineer Plan Review and Permits FJGIJHrjh cc: Engineer -of -record: James W. Mehannah, P.E. Palm Bwh COUM � p4dmBea* FL 33101 -- PA. Box 29,901 Everna SU"s, I- • � 7blb 992 T 9S Sl I W83d ' aNt1 ' M3I ^3N ' NO1d Wd 00 = Z0 Z0-6Z-AUW VILLAGE OF TEQUESTA UTILITIES DEPARTMENT Post Office Box 3474 • 136 Bridje Road Tequesta, Florida 33469-0474 • (561) 575-6234 Fax: (561) 575-6245 May 22, 2002 Mr. Trent Bass Centex Homes 8198 Jog Road Suite 200 Boynton Beach, Florida 33437 SENT VIA FAX & US MAIL RE: TEQUESTA TRACE / LETTER OF ACCEPTANCE Dear Mr. Bass: Pursuant to the terms and conditions of our Standard Water Service Agreement, please allow this letter to serve as a formal acceptance by the Tequesta Utilities Department for the water system appurtenances for Tequesta Trace. The Utilities Department will assume total operation and maintenance of these appurtenances after you receive the final Certificate of Occupancy upon completion of the project. As stipulated in our Agreement, your warranty period will expire one year from the date of the last Certificate of Occupancy. Should we be required to make any necessary repairs to the system prior to the expiration of this one year period, you will be invoiced accordingly. Should you have any questions or concerns, please do not hesitate to give me a call. Sin el , ZL �/—' �-t - Russell K. White Public Services Supervisor c: Michael R. Couzzo Jr, Village Manager Jeffrey Newell, Director of Community Development rN James W. Mahannah, P.E., Schnars Engineering Corporation 05/16/2002 09:22 561-575-6245 PUBLIC WORKS FAG PAGE 01 VILLAGE OF TEQUESTA UTILITIES DEPARTMENT Post Office Box 3474. 136 Bridge Road Tequesta. Florida 33469-0474 • (561) 575-6234 Fax: (561)575-6245 May 16, 2002 Mr, James W. Mahannah, P-E. Schnars .Engineering Corporation 951 Broken Sound Parkway Suite 108 Boca Raton, Florida 33487 Re: Tequesta Trace Project f Final Plat Approval Dear Jim, SENT VIA FAX & US MAIL I have spoken with Brad Woods from Centex Homes regarding the above referenced, and I am waiting for the Bill of Sale, and -Contractors Release of Lien to be recorded by the Village Attorney. After these documents are Teviewed for legal sufficiency, -and recorded, I will issue Centex Homes a Letter of Acceptance for this project. Please note that the `Letter of Acceptance will have a stipulation that Centex Homes -will be required to repair any damage to the infrastructure caused by any of.their.sub contractors until they receive the Certificate of Occupancy on the last building. If you require additional information from my Department, please feel free to call me. Sin ze Russell K. White Public Services Supervisor cc: Michael R. Couzzo Jr.,- Utilities Director JeffNewell, Director of Community Development 05/06/02 MON 16:41 FAX 1 561 241 5182 SCHNARS ENGINEERING CORP 0 001 C O V E R FAX S H E E T To: Jeff Newell Director of Community Development Village of Tequesta Fax #: (561) 575-6224 Subject: Tequesta Trace Date: May 6, 2002 pages: 3, including this cover sheet. COMMENTS: Jeff, here are the final water a13d sewer releases from the Heath Department. The 'Utilities Department is waiting for an original release of lien aad bill of sale to complete the conveyance package. Please lot me know what additional infonalatioti you need to continue with plat %-111 recordation. Thaak you. From the desk of.,. James W. Mahannah, P.E. vice President schnars Enginaaring Corporation 951 Broken Sound Parkway, Sulto 108 Boo& Raton, FL 33487 (561) 241-6455 Fax: (561) 241-5182 05/06/02 MON 16:42 FAX 1 561 241 5182 SCHNARS ENGINEERING CORP IM 002 )FLORMA DEPARTUM OF ?,-**N Jeb Bush John 4. Agwunobi, M.D., M.B.A. Govemor Secretuy January 8, 204 Mike Estok, Utility Director Village of Tequesta 210 Military Trail Jupiter, Florida 33458 Dear Mr. Estok: PROJECT: Tequesta Trace WATER PERMIT NO: 138296-016-DSGP The referenced project is hereby released for service to the extent indicated below. This release is based on certification by the engineer -of -record that the water and/or sewer system has been constructed in substantial conformance with plans previously approved by this agency. X—The system is released to the full extent of the approved plans. �r+� The system is partially released, and limited to 1 The system is released for construction water only: _ A. Full extent S. Partially, and limited to Sincerely, For the Division Director Division of Environmental Health & Engineering Rasik Chokshi Environmental Engineer Plan Review and Permits FJG/RC/bj Cc: Engineer -of -record: James W. Mahannah, P.E. Palm Beach County Health Department P.O. Box 29, 9o1 Evernin Street, West Palm Beach, FL 33401 05/06/02 MON 16:42 FAX 1 561 241 5182 SCHNARS ENGINEERING CORP 1&003 HEUor Jeb Bush Tobn o.Agwunobi, M.n. M.B.A. Governor secretary May 6, 2002 Richard C. Dent III, Executive Director Loxahatchee River Environmental Control District 2500 Jupiter Park Drive Jupiter FL 33458 PROJECT: Tequesta Trace SEWER PERMIT NO.: 138774-068-DWC Dear Mr. Dent: The referenced project is hereby released for service to the extent indicated below. This release is based on certification by the engineer -of -record that the water and/or sewage system has been constructed in substantial conformance with plans previously approved by this agency. I The system is released to the full extent of the approved plans_ Sincerely, For the Division Director Division of Environmental Health & Engineering James Holland Environmental Engineer Plan Review and Permits FJC/JH/jh cc: Engineer -of -record: James W. Mahannah, P.E. Palm Beach County Health Dcputment P.O. Box 29, 901 Evcmia Strcct, West Palm Beacb, FL 33401 10435 Ironwood Road Palm Beach Gardens, FL 33410 Phone (561)627-3600 Ade'ph'a Fax (561) 627-1266 ?10'1 May 28, 2002 Mr. Brad Woods Centex Homes Re: Tequesta Trace Mr. Woods: This letter is to confirm Adelphia's availability of service to the above -mentioned (0"N property. Currently we are 40% complete with the construction of our external cable plant. Thank you and we look forward to serving your property. Sin rely, Don E. Benson Construction Supervisor Cc: Village Council of Tequesta C:\My Documents\Documents\New Construction\LETTERS\Don Benson\Cable Availability\Tequesta Trace.doc Equal Opportunity Employer O BELLSOUTH BellSouth Telecommunications, Inc. 561 439-9100 Engineering Fax 561 964-3499 2021 South Military Trail Pager 561 885-9220 West Palm Beach, Florida 33415 Tequesta Village Council As of 5-30-2002 BellSouth is 10% complete with the Tequesta Trace Project. 4 � � e '/', Z� Bill Reader / 746-3693 BellSouth Engineering n Paul S. Davis Director �II� Florida Power &Light Company Blvd 100 S. Delaware Jupiter Fl. FPL 33458 August 15, 2001 Mr. Michael J. Nisenbaum Centex Homes 8198 Jog Road, Suite #200 Boynton Beach, FL 33437 Tequesta Trace Property, Tequesta Fl. Dear Mr. Nisenbaum , Per your request stating the percentage of FPL work for the above -mentioned property as of today, 5/29/02 FPL is 90% complete. FPL is still awaiting to receive recorded Easements. Thank you, &oeDragon oject Manager Florida Power & Light Co. an FPL Croup Company SCHALAR5 ENGINEERING CORPORATION May 31, 2002 Mr. Jeffery C. Newell Director of Community Development Village of Tequesta 250 Tequesta Drive, Suite 350 Tequesta, FL 33469-0273 RE: Tequesta Trace Plat Schnars Engineering Corp. Project No. 00136 Mr. Newell: Jeffrey T. Schnars, PE. President James W. Mahannah, P.E. Vice President Based on field reviews under my responsible charge, it is my professional opinion that the paving (1" lift of asphalt only), grading and storm drainage improvements for the above referenced plat have been constructed in substantial accordance with the approved construction plans. 2°d lift of asphalt will be applied prior to the issuance of the last certificate of occupancy. Sincerely, SCHNARS ENGINEERING CORPORATION :James W. Maharnah, P.E., Vice President CIVIL ENGINEER FLORIDA REGISTRA-TION No. 47066 (FOR THE FIRM) copy: Mike Nisenbaum, Centex Homes 951 Broken Sound Parkway, Suite 108 • Boca Raton, FL 33487 • Tel: (561) 241-6455 • Fax: (561) 241-5182 1 Return to: (enclose self-addressed stamped envelope) Name: Address: This Instrument Prepared by: Mark F. Grant, Esq. Ruden, McClosky, Smith Schuster & Russell, P.A. 200 East BTOward Boulevard 15th Floor Fort Lauderdale, Florida 33301 DATA SPACE ABOVE THIS LINE FOR PROCESSING DATA SPACE ABOVE THIS LINE FOR DECLARATION OF CONDOMINIUM OF TEQUESTA TRACE, A CONDOMINIUM CENTEX HOMES, a Nevada general partnership ("Developer"), as owner in fee simple of the "Land" (as hereinafter defined), whose principal office is located at 8198 Jog Road, Suite 200, A' , Boynton Beach, FL 33437, hereby makes this Declaration of Condominium of Tequesta Trace, a Condominium ("Declaration") to be recorded amongst the Public Records of Palm Beach County, Florida ("County"), where the Land is located, and states and declares: 1. SUBMISSION STATEMENT Developer is the owner of record of the "Condominium Property" (as hereinafter defined) and does hereby submit "Phase 2" (hereinafter referred to as the "Initial Phase") to condominium ownership pursuant to the Condominium Act, Chapter 718, Florida Statutes, as amended through the date of recording this Declaration amongst the Public Records of the County ("Act"). The name by which the condominium created hereby ("Condominium") and the Condominium Property are to be identified is: TEQUESTA TRACE, A CONDOMDUUM 3. PHASE CONDOMINIUM -LAND The land which will have become part of the Condominium Property when, as and if all of the "Phases" (as hereinafter defined) are added to the Condominium Property is described in Exhibit A ("Land") attached hereto and made a part hereof. The legal description of the portion of the Land ("Initial Phase Land") constituting "Phase 2" of the Condominium Property is set forth on Exhibit B-2 attached hereto and made a part hereof. The legal descriptions of the portions of the Land constituting each "Subsequent Phase" (as hereinafter defined) of the Condominium Property NAP:23654:8 I ^° are set forth on Exhibits B-1 and B-3 through B-17, inclusive, attached hereto and made a part hereof. 4. DEFINITIONS The terms contained in this Declaration shall have the meanings given in the Act and, for clarification, the following terms have the following meanings: 4.1. "Act" means the Condominium Act, Chapter 718, Florida Statutes, as amended through the date of recording this Declaration amongst the Public Records of the County. 4.2. "Architectural Review Committee" or "ARC" means the committee established by the Board and described in Section 17 hereof. 4.3. "Articles" means the Articles of Incorporation of the Association, attached as Exhibit C and incorporated herein by reference. 4.4. "Assessments" means the assessments for which all Dwelling Unit Owners are obligated to the Association pursuant to the Act, as well as common law assessments which are created by this Declaration and are covenants running with the land, and include: 4.4.1. "Annual Assessment," which includes, but is not limited to, each Dwelling Unit Owner's annual share of funds required for the payment of "Common Expenses," as determined in accordance with this Declaration; and 4.4.2. "Special Assessments," which include any Assessments levied by the Board in addition to the Annual Assessment and are more particularly described in Paragraph 21.11 herein. 4.5. "Association" means Tequesta Trace Condominium Association, Inc., a Florida corporation not for profit, responsible for operating the Condominium or any other Condominiums which may be created in Tequesta Trace. 4.6. "Board" means Board of Directors of the Association. 4.7. "Bylaws" means the Bylaws of the Association, attached hereto as Exhibit D and incorporated herein by reference. 4.8. "Common Elements" means: 4.8.1. The Condominium Property, other than the Dwelling Units; NAP:23654:8 2 4.8.2. Easements through the Dwelling Units, as applicable, for conduit ducts, plumbing, wiring and other facilities for furnishing of utility services to Dwelling Units and the Common Elements; 4.8.3. An easement of support in every portion of a Dwelling Unit which contributes to the support of a `Building" (as hereinafter defined) submitted to condominium ownership; 4.8.4. Property and installations required for the furnishing of utility services and other services for more than one Dwelling Unit, the Common Elements, or a Dwelling Unit other than the Dwelling Unit containing the installation; and 4.8.5. Such portion or portions of the Land, when, as and if same are submitted to condominium ownership. 4.9. "Common Expenses" means expenses for which the Dwelling Unit Owners are liable to the Association as defined in the Act and as described in the Condominium Documents and include: 4.9.1. The expenses for the operation, maintenance, repair or replacement of the Common Elements, costs of carrying out the powers and duties of the Association, cost of fire and extended coverage insurance, and security services, if any; 4.9.2. Any other expenses designated, not inconsistent with the Act, as Common Expenses from time to time by the Board. 4.10. "Common Surplus" means the excess of receipts of the Association collected on behalf of Tequesta Trace Condominium(s) (including, but not limited to, assessments, rents, profits and revenues, on account of the Common Elements) over the Common Expenses. 4.11. "Condominium" means that portion of the Land in Tequesta Trace described in Exhibit A attached hereto and the improvements thereon being submitted to condominium ownership pursuant to this Declaration as the same may be amended from time to time. 4.12. "Condominium Documents" means in the aggregate this Declaration, the Articles, Bylaws, any rules and regulations promulgated by the Association and all of the instruments and documents referred to therein and executed in connection with this Condominium. 4.13. "Condominium Property" means the real property submitted to condominium ownership as part of the Condominium and all improvements thereon, including, but not limited to, the Dwelling Units and the Common Elements. The easements described and set forth in this paragraph are intended to comply with Section 718.104(4)(m) of the Act. Notwithstanding anything contained herein to the contrary, however, the term "Condominium Property" shall not include any telecommunications lines and equipment owned by a utility and/or telecommunication firm(s) and/or other legal entity(ies) which have contracted with or have imposed other legal requirements upon Developer and/or the Association to provide a utility or telecommunications service and/or equipment nor shall Condominium Property include telecommunications equipment, if any, owned NAP:23654:8 by Developer, the title to which is hereby specifically reserved unto Developer, its successors and/or assigns. No portion of the land within any Subsequent Phase shall be included in the term "Condominium Property" until and unless such Subsequent Phase is submitted to condominium ownership by amendment to this Declaration. 4.14. "County" means Palm Beach County, Florida. 4.15. "Developer" means Centex Homes, a Nevada general partnership, its grantees, corporate successors and assigns. Developer shall have the right to assign any and all of the rights and privileges reserved for Developer under this Declaration. A Dwelling Unit Owner shall not, solely by the purchase of a Dwelling Unit, be deemed a successor or assign of Developer or of the rights of Developer under the Condominium Documents unless such Dwelling Unit Owner is specifically so designated as a successor or assign of such rights in the instrument of conveyance or any other instrument executed by Developer. 4.16. "Declaration" means this document and any and all amendments hereto. 4.17. "Dwelling Unit" means "Unit" as described in the Act and is that portion of the Condominium Property within the Condominium which is subject to exclusive ownership. 4.18. "Dwelling Unit Owner" means "Unit Owner" as set forth in the Act and is an owner of a Dwelling Unit. 4.19. "Institutional Mortgagee" means any lending institution having a mortgage lien upon a Dwelling Unit, including, but not limited to, any of the following institutions or entities: (i) a federal or state savings and loan association or bank doing business in the State of Florida or a life insurance company doing business in Florida which is approved by the Commissioner of Insurance of the State of Florida, or bank or real estate investment trust, or a mortgage banking company licensed to do business in the State of Florida, or any subsidiary thereof licensed or qualified to make mortgage loans in the State of Florida or a national banking association chartered under the laws of the United States of America; or (ii) any and all investing or lending institutions ("Lender") which have loaned money to Developer in order to enable Developer to acquire, or construct improvements upon, any portion of Tequesta Trace and which holds a first mortgage upon such portion of Tequesta Trace as security for such loan; or (iii) any pension or profit sharing funds qualified under the Internal Revenue Code; or (iv) the Veterans Administration or the Federal Housing Administration or the Department of Urban Development or other lenders generally recognized in the community as institutional lenders; or (v) such other Lenders as the Board shall hereafter designate as such in writing which have acquired a mortgage upon a Dwelling Unit; or (vi) any "Secondary Mortgage Market Institution", including Federal National Mortgage Association or the Federal Home Loan Mortgage Corporation, and such other Secondary Mortgage Market Institution as the Board shall hereafter designate as such in writing which has acquired a mortgage upon a Dwelling Unit; or (vii) Developer, its successors and assigns. 410. "Interest" means the maximum nonusurious interest rate allowed by law on the subject debt or obligation and, if no such rate is designated by law, then eighteen percent (18%) per NAP:23654:8 4.21. "Legal Fees" means: (i) reasonable fees for attorney and paralegal services incurred in negotiation and preparation for litigation, whether or not an action is actually begun, through and including all trial and appellate levels and post judgment proceedings; and (h) court costs through and including all trial and appellate levels and post judgment proceedings. 4.22. "Limited Common Element" means those Common Elements which are reserved for the use of certain Dwelling Units to the exclusion of other Dwelling Units as more particularly described in Paragraphs 5.3 and 6.2 hereof. 4.23. "Listed Mortgagee" means the holder, insurer, or guarantor of a mortgage encumbering a Dwelling Unit of which the Association has been notified pursuant to Paragraph 29.4 herein. 4.24. "Owner" or "Dwelling Unit Owner" means "Unit Owner" as defined in the Act, and is the owner of a Dwelling Unit. 4.25. "Phase" or "Phases" means that portion of the Land and improvements thereon, as contemplated by Section 718.403 of the Act, which may become part of the Condominium Property by recording this Declaration or an amendment hereto. 4.26. "Public Records" means the Public Records of the County. 4.27. "Subsequent Phases" means those portions of the Land and improvements thereon, other than the Initial Phase, which Developer may, but shall not be obligated to, submit to the Condominium Property, in whole or in part, and shall consist of Phases B-1 and B-3 through B-17, inclusive. 4.28. "Tequesta Trace" means the name given to the planned residential development which is currently being developed by Developer, and which is planned to contain one hundred thirty-four (134) Dwelling Units in sixteen (16) phases, thirteen (13) of which are each to contain a two (2)-story residential building with eight (8) dwelling units; three (3) of which are each to contain a two (2)-story residential building with ten (10) dwelling units; a "Recreational Area" (as hereinafter defined) and other Common Elements, certain drives, parking areas, landscaped areas, and storm water management system. 5. DESCRIPTION OF IMPROVEMENTS - INITIAL PHASE 5.1. Description of Improvements - Initial Phase. The portion of the land and improvements ("Initial Phase") being submitted to condominium ownership pursuant to this Declaration is described on the "Initial Phase Survey" (as hereinafter defined). The improvements in the Initial Phase include one (1) two (2)-story residential building (`Building") which contains eight (8) Dwelling Units each of which is designated as described in Article 5.2.2; and certain road, landscaping and parking areas; and easement rights in certain property within the Condominium. NAP:23654:8 5.2. Initial Phase Survey. 5.2.1 Annexed hereto as Exhibit B-2 and made a part hereof is the Survey, Plot Plan and Graphic Description of Improvements for the Initial Phase which includes a survey of the land in the Initial Phase, graphic description of the improvements in which the Dwelling Units and the Common Elements are located and plot plan thereof (all of which are herein collectively referred to as the "Initial Phase Survey"). The Initial Phase Survey shows and identifies thereon the Common Elements and every Dwelling Unit, their relative location and approximate dimensions. There is attached to the Initial Phase Survey and made a part of this Declaration certificate of a surveyor prepared, signed and conforming with the requirements of Section 718.104(4)(e) of the Act. 5.2.2. Description and Identification of Dwelling Units. The Dwelling Units in Phase 2 shall be identified by a number (representing the Phase) and a three digit number (e.g. 2101) and is so referred to herein and in the Exhibits hereto. No Dwelling Unit in any Subsequent Phase which is added to the Condominium Property shall bear the same identifying number as any other Dwelling Unit in the Condominium. 5.3 Limited Common Elements. 5.3.1 Covered Patios/Covered Balconies. Each area shown as a "Covered Patio" or "Covered Balcony" on a Phase Survey shall be a part of the Dwelling Unit to which it is adjacent, which Covered Patio/Covered Balcony shall be maintained by the Dwelling Unit Owner as well as any sliding doors or screens adjacent to or part of the Covered Patios/Covered Balconies. In the event a repair related to the construction of the Covered Patio/Covered Balcony is required, the Association shall be responsible for such repair. If the Dwelling Unit Owner of the Dwelling Unit installs a covering on the surface of the Covered Patio/Covered Balcony, such as but not limited to tile, then the covering shall remain the personal property of such Dwelling Unit Owner and the Association shall not be responsible for any damage to such personal property in connection with any repair to the Covered Patio/Covered Balcony. Notwithstanding anything herein to the contrary, the Association shall be responsible for any painting of the exterior walls of the Covered Patios/Covered Balconies. 5.3.2 Covered Entry. Each area shown as a "Covered Entry" on the Phase Surveys shall be a Limited Common Element reserved for the exclusive use of the Dwelling Unit Owner(s) of the Dwelling Unit(s) adjacent thereto, which Covered Entry shall be maintained by the Association. 5.3.3 A/C Land. The A/C Land in each Phase upon which is situated all air conditioning equipment located outside a Dwelling Unit, including the compressors located adjacent to the Building in which the Dwelling Unit is located and the coolant lines between such compressors and the Dwelling Unit, shall be a Limited Common Element for the exclusive use of the Dwelling Unit served thereby. The air conditioning equipment itself shall be owned, maintained, repaired and replaced by each Dwelling Unit Owner whose Dwelling Unit is served thereby. NAP:23654:8 5.3.4 Parking. Each area shown on the Phase Surveys as "Parking", which is limited to the amount of space required to park a vehicle, shall be a Limited Common Element reserved for the exclusive use of the Dwelling Unit Owner of the Dwelling Unit adjacent thereto, and shall be maintained by the Association. 5.3.5 Garages. The "Garage" shown on the Phase Surveys for each Dwelling Unit shall be a Limited Common Element reserved for the exclusive use of the Dwelling Unit Owner of such Dwelling Unit. The Dwelling Unit Owner shall maintain the garage door and appurtenant equipment and the interior of the garage; the exterior of the garage shall be maintained by the Association. 5.3.6 Driveways. The Association, or any resident of Tequesta Trace with the written approval of the Association, may to construct one or more of the "Optional Expanded Driveways" as depicted on the Village of Tequesta's Approved Site Plan for Tequesta Trace (as prepared by Gentile Holloway, & O'Mahoney, latest revision date January 16, 2001), conditioned upon the approval by the Village of Tequesta Council of a building permit application for said construction. The Village Council shall have sole discretion to determine whether to grant such request. The cost to prepare, submit, and gain Village of Tequesta approval for said construction, as well as the cost of the construction, shall be the obligation of the Association, or resident, exercising this right. 6. DESCRIPTION OF IMPROVEMENTS IN SUBSEQUENT PHASES 6.1. Subsequent Phases. 6.1.1. Condominium Property. Developer is developing the Condominium Property as a phase condominium as provided for by Section 718.403 of the Act. In addition to the portion of the Land and improvements described on the Initial Phase Survey being submitted to condominium ownership pursuant to this Declaration, Developer contemplates that all or a portion of the Subsequent Phases may, by amendment or amendments hereto, be added to the Condominium Property as an additional Phase or additional Phases. If, as and when Subsequent Phases are added, the Condominium Property shall be enlarged and expanded so as to encompass and include the real property, the improvements thereon, and the easements and rights appurtenant thereto which are submitted to condominium ownership as parts of such Subsequent Phase or Phases, and each Subsequent Phase added to the Condominium Property will utilize the Surface Water Management System (as hereinafter defined) permitted by the South Florida Water Management District. 6.1.2. Subsequent Phase Surveys. Annexed hereto as Exhibits B-1 and B-3 through B-17, inclusive, are the surveys, plot plans and graphic descriptions of improvements for Phases 1 and 3 through 17 ("Phase 1 Survey," "Phase 3 Survey," "Phase 4 Survey," etc.). Notwithstanding any indications to the contrary herein contained, Developer may make nonmaterial changes in the description(s) of any Subsequent Phase more particularly described on the Phase 1 Survey, Phase 3 Survey, Phase 4 Survey, etc. (collectively, the "Subsequent Phase Surveys"). 6.1.3. Minimums and Maximums. While at the time of recordation of this Declaration, Developer plans to include the number of Dwelling Units in each Subsequent Phase intended to contain Dwelling Units as set forth in the following chart, the Act requires that the Declaration also set forth the minimum and maximum number of Dwelling Units which Developer reserves the right to add in each Subsequent Phase, which information is set forth in the following chart: NAP:23654:8 ^' Dwelling Units Phases Developer's Minimum Number Maximum Number Plans (for of Dwelling Units of Dwelling Units each Phase) in each Phase in each Phase 1, 3-8 & 12-16 7 8 9 9-11 8 10 12 While Developer plans that the general size for each Unit A Dwelling Unit in the Offered Condominium will be approximately one thousand thirty-six (1,036) air-conditioned square feet, Unit B Dwelling Units will be approximately one thousand two hundred ten (1,210) air-conditioned square feet, Unit C Dwelling Units will be approximately one thousand four hundred seventeen (1,417) air conditioned square feet, Unit D Dwelling Units will be approximately one thousand seven hundred seventy seven (1,777) air conditioned square feet, Unit E Dwelling Units will be approximately one thousand seven hundred seventy six (1,776) air conditioned square feet, and Unit DR Dwelling Units will be approximately one thousand nine hundred fifty four (1,954) air conditioned square feet, Developer reserves the right to include Dwelling Units ranging in size from a minimum of eight hundred twenty-nine (829) square feet to a maximum of two thousand three hundred forty four (2,344) square feet. 6.1.4. Description and Identification of Dwelling Units. Each Building in any Subsequent Phase containing Dwelling Units, if any such Subsequent Phase is submitted to the Condominium Property pursuant to a Subsequent Phase amendment, shall be identified by a number (representing the Phase) and a three digit number (e.g. 1101) and is so referred to herein and in the Exhibits hereto. No Dwelling Unit in any Subsequent Phase which is added to the Condominium Property shall bear the same identifying number as any other Dwelling Unit in the Condominium. 6.2. Limited Common Elements. 6.2.1. Covered Patios/Covered Balconies. Each area shown as a "Covered Patio" or "Covered Balcony" on a Phase Survey shall be a part of the Dwelling Unit to which it is adjacent, which Covered Patio/Covered Balcony shall be maintained by the Dwelling Unit Owner as well as any sliding doors or screens adjacent to or part of the Covered Patios/Covered Balconies. In the event a repair related to the construction of the Covered Patio/Covered Balcony is required, the Association shall be responsible for such repair. If the Dwelling Unit Owner of the Dwelling Unit installs a covering on the surface of the Covered Patio/Covered Balcony, such as but not limited to tile, then the covering shall remain the personal property of such Dwelling Unit Owner and the Association shall not be responsible for any damage to such personal property in connection with any repair to the Covered Patio/Covered Balcony. Notwithstanding anything herein to the contrary, the Association shall be responsible for any painting of the exterior walls of the Covered Patios/Covered Balconies. 6.2.2. Covered Entry. Each area shown as a "Covered Entry" on the Phase Surveys shall be a Limited Common Element reserved for the exclusive use of the Dwelling Unit Owner(s) of the Dwelling Unit(s) adjacent thereto, which Covered Entry shall be maintained by the Association. NAP:23654:8 6.2.3. A/C Land. The A/C Land in each Phase upon which is situated all air conditioning equipment located outside a Dwelling Unit, including the compressors located adjacent to the Building in which the Dwelling Unit is located and the coolant lines between such compressors and the Dwelling Unit, shall be a Limited Common Element for the exclusive use of the Dwelling Unit served thereby. The air conditioning equipment itself shall be owned, maintained, repaired and replaced by each Dwelling Unit Owner whose Dwelling Unit is served thereby. 6.2.4. Parking. Each area shown on the Phase Surveys as "Parking", which is limited to the amount of space required to park a vehicle, shall be a Limited Common Element reserved for the exclusive use of the Dwelling Unit Owner of the Dwelling Unit adjacent thereto, and shall be maintained by the Association. 6.2.5. Garages. The Garage shown on the Phase Surveys for each Dwelling Unit shall be a Limited Common Element reserved for the exclusive use of the Dwelling Unit Owner of such Dwelling Unit. The Dwelling Unit Owner shall maintain the garage door and appurtenant equipment and the interior of the garage; the exterior of the garage shall be maintained by the Association. 6.3 Subsequent Phases Containing Eight Homes le� Subsequent Phases 1, 3 through 8 and 12 through 16, if added to the Condominium Property pursuant to this Declaration by an amendment hereto, are intended to consist of the real property more particularly described in the Surveys attached hereto for such Phases and made a part hereof, the improvements of which are intended to include, as to each Phase, one (1) two (2)-story residential building (`Building") containing, in addition to the Common Elements therein, eight (8) Dwelling Units, and the Common Elements shown on the Survey. The Survey (as revised prior to the recordation of the Amendment adding such Phase) shall be attached to the Amendment adding such Phase. Developer shall provide no items of personal property for the Common Elements within these Phases. If such Phases are submitted to the Condominium Property pursuant to an Amendment, such Phases will be completed and the respective Amendments will be recorded amongst the Public Records no later than the later to occur of (i) seven (7) years from the date of recordation hereof or (ii) the maximum time allowed by law. 6.4 Subsequent Phases Containing Ten Homes Subsequent Phases 9, 10 and 11, if added to the Condominium Property pursuant to this Declaration by an amendment hereto, are intended to consist of the real property more particularly described in the Surveys attached hereto for such Phases and made a part hereof, the improvements of which are intended to include, as to each Phase, one (1) two (2)-story residential building (`Building") containing, in addition to the Common Elements therein, ten (10) Dwelling Units, and the Common Elements shown on the Survey. The Survey (as revised prior to the recordation of the Amendment adding such Phase) shall be attached to the Amendment adding such Phase. Developer shall provide no items of personal property for the Common Elements within these Phases. If such Phases are submitted to the Condominium Property pursuant to an Amendment, such Phases will be completed and the respective Amendments will be recorded NAP:23654:8 9 amongst the Public Records no later than the later to occur of (i) seven (7) years from the date of recordation hereof or (ii) the maximum time allowed by law. 6.5. Phase 17 Phase 17, if added to the Condominium, is intended to consist of the real property ('Phase 17 Land') and improvements located thereon more particularly described in the Survey of the Master Association Property (hereinafter referred to as the "Phase 17 Survey") attached hereto as Exhibit B-17 and hereby made a part hereof, all of which shall be Common Elements when and if Phase 17 is added to the Condominium Property as hereinafter set forth. The improvements to be located in Phase 17 are intended to include the Recreation Area, certain drives, parking areas, landscaped areas, and the storm water management system ("Storm Water Management System") within Tequesta Trace, all as depicted on the Phase 17 Survey. Phase 17 shall not contain any Dwelling Units. If such Phase is submitted to the Condominium Property pursuant to an Amendment, such Phase will be completed and the Amendment will be recorded amongst the Public Records no later than the later to occur of (i) seven (7) years from the date of recordation hereof or (ii) the maximum time allowed by law. RECREATIONAL FACILITIES MAY BE EXPANDED OR ADDED WITHOUT THE CONSENT OF THE DWELLING UNIT OWNERS OR THE ASSOCIATION. n 6.6. Changes in Subsequent Phases. Notwithstanding any indications to the contrary herein contained, descriptions relating to Phases or Exhibits referred to in this Article 6 or Articles 5 or 7 hereof, including, but not limited to, legal, graphic, numerical, narrative and the like, are approximations. To the fullest extent permitted by law, Developer reserves the right to change such descriptions as to a Phase by recording an amendment hereto until such time as Developer conveys a Dwelling Unit in such Phase to a Dwelling Unit Owner. Such an amendment shall not require the execution thereof by the Association, Institutional Mortgagees or any other person, persons or entity unless: (i) Developer changes the proportion by which a Dwelling Unit Owner, other than Developer, shares the Common Expenses and the Common Surplus or owns the Common Elements, in which event such Dwelling Unit Owner whose share of Common Elements, Common Expenses and Common Surplus is being so changed and the Institutional Mortgagees of record holding mortgages on the affected Dwelling Unit must consent in writing thereto; or (ii) such change materially and adversely affects a Dwelling Unit Owner as determined by Developer in the reasonable discretion of Developer, in which event such Dwelling Unit Owner and the Institutional Mortgagee of record holding the mortgage on the affected Dwelling Unit must consent thereto in writing or such amendment must be adopted in accordance with Article 27 hereof. 6.7. Addition of Subsequent Phases - No Prescribed Order. Notwithstanding the numerical sequence of the Subsequent Phases or any inference that can be drawn therefrom or from any other provision of the Condominium Documents, Developer reserves the right to submit Subsequent Phases to the Condominium Property in any sequence, provided, however, that there shall be submitted as a portion of the Common Elements, NAP:23654:8 10 if necessary, an easement providing means of ingress and egress from and to any Subsequent Phase which is submitted to the Condominium Property to and from public ways, including dedicated streets. 7. PHASE DEVELOPMENT 7.1. Impact of Subsequent Phases on Initial Phase. 7.1.1. Common Elements of Initial Phase. The Common Elements as shown on the Initial Phase Survey and included in the Initial Phase will be owned by all Dwelling Unit Owners in all Phases submitted to the condominium form of ownership as a portion of the Condominium Property pursuant to this Declaration and amendments hereto, if any. 7.1.2. Subsequent Phase Not Added. If any Subsequent Phase does not become part of the Condominium Property, no portion of such Subsequent Phase (including, but not limited to, the portion which would have constituted the Common Elements) shall become a part of the Condominium Property. 7.1.3. Common Elements of Subsequent Phases. If any Subsequent Phase is added to and does become a part of the Condominium Property, then all of the Common Elements constituting a portion of such Subsequent Phase shall become a part of the Common Elements of the Condominium Property, with such Common Elements being owned in undivided shares by all Dwelling Unit Owners in all Phases then and thereafter constituting a portion of the Condominium. 7.1.4. Share of Ownership Upon Submission of Only Initial Phase. If only the Initial Phase is submitted to the Condominium Property pursuant to this Declaration, there will be eight (8) Dwelling Units in the Condominium, each having as an appurtenance thereto one (1) vote in the Association and an equal undivided share of ownership in the Common Elements. 7.1.5. Share of Ownership Upon Submission of Subsequent Phase. If any Subsequent Phase, in addition to the Initial Phase, is submitted to the Condominium Property, then each Dwelling Unit in all Phases submitted to the Condominium Property shall have as appurtenances thereto one (1) vote in the Association and an equal undivided share of ownership in the Common Elements. If all Subsequent Phases are submitted, as planned, to condominium ownership as a portion of Condominium Property pursuant to an amendment or amendments to this Declaration, the total number of Dwelling Units shall be one hundred thirty-four (134). The number of Dwelling Units planned to be included in each Subsequent Phase if, as and when added to the Condominium, is set forth in Article 6 hereof. 7.2. Withdrawal Notice. Developer, in its absolute discretion, reserves the right to add or not to add any or all of the Subsequent Phases as part of the Condominium Property. Hence, notwithstanding anything contained in this Declaration to the contrary, no portion of any Subsequent Phase shall be affected or encumbered by this Declaration unless and until such Subsequent Phases are added to the Condominium Property by amendment to this Declaration recorded amongst the Public Records. NAP:23654:8 I 1 Notwithstanding the fact that the foregoing portion of this Paragraph 7.2 is self -operative, if Developer determines not to add any or all Subsequent Phases to the Condominium Property, Developer may, in addition to any action otherwise required by the Act, record amongst the Public Records a notice ("Withdrawal Notice") to the effect that such Subsequent Phase or Subsequent Phases shall not be added to the Condominium Property. Further, should Developer record amongst the Public Records a Withdrawal Notice with respect to one (1) or more, but not all, of the Subsequent Phases, Developer shall retain the right to record additional Withdrawal Notices with respect to any or all of the Subsequent Phases which were not submitted to the Condominium Property and are not covered by any prior Withdrawal Notice. Notwithstanding anything contained herein to the contrary, in the event Developer records amongst the Public Records one (1) or more Withdrawal Notices, then Developer shall have all rights permissible by law with respect to ownership of the Subsequent Phases covered by any and all such Withdrawal Notices, including, but not limited to, the right to develop such Subsequent Phase and/or Subsequent Phases as one (1) or more separate condominiums. 8. UNDIVIDED SHARES IN COMMON ELEMENTS 8.1. Appurtenance. 8.1.1. Ownership of the Common Elements and Membership in the Association. Each Dwelling Unit shall have as an appurtenance thereto one (1) vote in the Association and an equal undivided share of ownership in the Common Elements. As each Subsequent Phase is added to the Condominium, each Unit's percentage interest in the Common Elements will decrease based upon the number of Units in the Subsequent Phase being added to the denominator. 8.1.2. Right to Use Common Elements. Each Dwelling Unit shall have as an appurtenance thereto the right to use all of the Common Elements and Condominium Property of this Condominium in accordance with the Condominium Documents and subject to any limitations set forth in such Condominium Documents. 8.2. Share of Common Expenses and Common Surplus. The Common Expenses shall be shared and the Common Surplus shall be owned in proportion to each Dwelling Unit Owner's share of ownership of the Common Elements. NAP:23654:8 12 9. VOTING INTERESTS 9.1. Voting Interest. The Dwelling Unit Owner or Dwelling Unit Owners, collectively, of the fee simple title of record for each Dwelling Unit shall have the right to one (1) vote per Dwelling Unit ("Voting Interest") in the Association as to matters on which a vote by Dwelling Unit Owners is taken as provided under the Condominium Documents and the Act, regardless of the number of Phases which have been added to the Condominium Property or the number of condominiums which have been created within Tequesta Trace, as to the matters on which a vote by the Dwelling Unit Owners is taken as provided in the Condominium Documents and the Act. 9.2. Voting By Corporation or Multiple Dwelling Unit Owners. The Voting Interest of the Dwelling Unit Owners of any Dwelling Unit owned by more than one (1) person, a corporation or other entity, or by one (1) person and a corporation and/or other entity, or by any combination of the aforesaid, shall be cast by the person ('Voting Member' named in a "Voting Certificate" signed by all of the Dwelling Unit Owners of such Dwelling Unit or, if appropriate, by properly designated officers, principals or partners of the respective legal entity which owns the Dwelling Unit and filed with the Secretary of the Association. If a Voting Certificate is not on file, the Voting Interest associated with a Dwelling Unit where the designation of a Voting Member is required shall not be considered in determining the requirement for a quorum or for any other purpose. 9.3. Ownership by Husband and Wife. Notwithstanding the provisions of Paragraph 9.2 above, whenever any Dwelling Unit is owned solely by a husband and wife they may, but shall not be required to, designate a Voting Member. In the event a Voting Certificate designating a Voting Member is not filed by the husband and wife, the following provisions shall govern their right to vote: (i) Where both husband and wife are present at a meeting, each shall be regarded as the agent and proxy for the other for purposes of casting the Voting Interest for each Dwelling Unit owned solely by them. In the event they are unable to concur in their decision upon any subject requiring a vote, they shall lose their right to exercise their Voting Interest on that subject at that meeting. (ii) Where only one (1) spouse is present at a meeting, the spouse present may exercise the Voting Interest of the Dwelling Unit without establishing the concurrence of the other spouse, absent any prior written notice to the contrary to the Association by the other spouse. In the event of prior written ^` notice to the contrary to the Association by the other spouse, the vote of said Dwelling Unit shall not be considered in determining the requirement for a quorum or for any other purpose unless such prior notice to the contrary has NAP:23654:8 13 been withdrawn by a subsequent written notice executed by both husband and wife. (iii) Where neither spouse is present, the person designated in a proxy signed by either spouse may exercise the Voting Interest of the Dwelling Unit, absent any prior written notice to the contrary to the Association by the other spouse or the designation of a different proxy by the other spouse. In the event of prior written notice to the contrary to the Association or the designation of a different proxy by the other spouse, the vote of said Dwelling Unit shall not be considered in determining the requirement for a quorum or for any other purpose. 9.4. Voting by Proxy. Except as specifically otherwise provided in the Act, Dwelling Unit Owners may not vote by general proxy, but may vote by limited proxy. Limited proxies and general proxies may be used to establish a quorum. Limited proxies and general proxies may also be used for voting on the matters outlined in Section 718.112(2)(b)(2) of the Act; however, no proxy, limited or general, shall be used in the election of members of the Board. 9.5. Elections. The members of the Board shall be elected by written ballot or voting machine in accordance with the provisions of Section 718.112(2)(d)(3) of the Act. 9.6 Eligibility of Directors. In accordance with Section 718.112(2)(d)(1) of the Act, except for Developer -appointed Directors, Directors must be Members or the spouses, parents or children of Members except that if a Dwelling Unit is owned by an entity and not an individual, such entity may appoint an individual on its behalf to be eligible to serve on the Board of Directors. 10. ASSOCIATION 10.1. Purpose of Association. The Association shall be the condominium association responsible for the operation of this Condominium and any other condominium created within Tequesta Trace. Each Dwelling Unit Owner shall be a member of the Association as provided in the Condominium Documents. A copy of the Articles are attached hereto as Exhibit C and made a part hereof. A copy of the Bylaws are attached hereto as Exhibit D and made a part hereof. '^ 10.2. Member Approval of Certain Association Actions. Notwithstanding anything contained herein to the contrary, the Association shall be required to obtain the approval of three -fourths (3/4) of all Dwelling Unit Owners (at a duly called NAP:23654:8 14 meeting of the Dwelling Unit Owners at which a quorum is present) prior to the payment of or contracting for legal or other fees or expenses to persons or entities engaged by the Association in contemplation of a lawsuit or for the purpose of suing, or making, preparing or investigating any lawsuit, or commencing any lawsuit other than for the following purposes: (i) the collection of Assessments; (ii) the collection of other charges which Dwelling Unit Owners are obligated to pay pursuant to the Condominium Documents; (iii) the enforcement of the use and occupancy restrictions contained in the Condominium Documents; (iv) in an emergency where waiting to obtain the approval of the Dwelling Unit Owners creates a substantial risk of irreparable injury to the Condominium Property or the Dwelling Unit Owners, provided, however, in such event the aforesaid vote shall be taken with respect to the continuation of the action at the earliest practical date (the imminent expiration of a statute of limitations shall not be deemed an emergency obviating the need for the requisite vote of three -fourths [3/4] of the Dwelling Unit Owners); or (v) filing a compulsory counterclaim. 10.3. Cancellation of Management Agreements. Pursuant to F.S. 718.302(1)(a), Florida Statutes, any cancellation of any management agreement between the Association and a manager shall require the affirtnative vote of not less than seventy-five (75%) of the voting interests in the Condominium. 10.4. Conveyance to Association. The Association is obligated to accept any and all conveyances to it by Developer of a fee simple title, easements or leases to all or portions of their property. 10.5. Conveyance by Association. The Association is empowered to delegate any of its functions or convey any of its property to any governmental unit as may be required or deemed necessary from time to time. 11. EASEMENTS 11.1. Perpetual Nonexclusive Easement to Public Ways. NAP:23654:8 15 The land which is to become Phase 17 of the Condominium, whether or not added to the Condominium, and the walks and other rights -of -way, if any, in this Condominium as shown on the Site Plan or hereafter located within this Condominium shall be, and the same are hereby declared to be, subject to a perpetual nonexclusive easement for ingress and egress and access to, over and across the same, to public ways, including dedicated streets, which easement is hereby created in favor of all the Dwelling Unit Owners in the Condominium now or hereafter existing for their use and for the use of their family members, guests, lessees or invitees for all proper and normal purposes and for the furnishing of services and facilities for which the same are reasonably intended, including ingress and egress for the furnishing of services by fire protection agencies, police and other authorities of the law, United States mail carriers, representatives of public utilities, including, but not limited to, the Department of Environmental Protection, telephone and electricity and other utilities or services authorized by Developer, its successors or assigns to service Condominium Property; and such other persons as Developer from time to time may designate for performing their authorized services. The Association shall have the right to establish the rules and regulations governing the use and enjoyment of the Common Elements and all easements over and upon same. 11.2. Easements and Cross -Easements on Common Elements. The Common Elements of the Condominium shall be and the same are hereby duly declared to be subject to perpetual nonexclusive easements in favor of the Association, and such appropriate utility, telecommunication and other service companies or the providers of the services hereinafter set forth as may be from time to time designated by Developer to and from all portions of Tequesta Trace for ingress and egress, and for the installation, maintenance, construction and repair of facilities, including, but not limited to, electric power, telephone, sewer, water, gas, drainage, irrigation, lighting, television transmission, communications systems transmission, reception and monitoring, security, garbage and waste removal and the like and for all purposes incidental thereto. Developer hereby reserves unto itself, its successors, assigns, designees and nominees, and hereby grants to the Association, the right to grant easements, permits and licenses over the Common Elements and to impose upon the Common Elements henceforth and from time to time such easements and cross -easements for any of the foregoing purposes as it deems to be in the best interests of and necessary and proper for the Condominium. Developer hereby reserves a blanket easement over, under, upon and through the Condominium for any purpose whatsoever. 11.3. Cross Easements for Drainage. Nonexclusive cross easements for drainage pursuant to the Storm Water Management System created by Developer as maintained, improved, repaired and/or replaced by the Association in compliance with applicable governmental regulations is hereby granted to each owner of any portion of the Subject Property and to all applicable governmental authorities. 11.4. Phase 17 Land. Developer reserves the right for itself to grant such easements over, under, in and upon the Land in favor of itself, the Association, its members and designees, and appropriate utility and other service corporations or companies for ingress and egress for persons and vehicles and to NAP:23654:8 16 provide power, electric, sewer, water and other utility services and lighting facilities, irrigation, television transmission and distribution facilities, telecommunications, security service and facilities in connection therewith, and access to publicly dedicated streets, and the like. In addition, upon declaring the Phase 17 Land a part of the Condominium, but only such portion of such land as shall become a part of the Condominium, Developer shall be deemed to have thereby granted to the Association the right to grant such easements over, under, in and upon the Phase 17 Land, but only such portion of such land as shall become a part of the Condominium, in favor of Developer, the Association, its members, designees, and others and appropriate utility and other service corporations or companies for the above -stated purposes. Either Developer or the Association shall execute, deliver and impose, from time to time, such easements and cross -easements for any of the foregoing purposes and at such location or locations as determined by either Developer or the Association. 11.5. Easement for Existing Lift Station and Sewer Line. An easement is hereby granted to the Village of Tequesta Utilities Department for ingress and egress for persons and vehicles and to provide power, electric, sewer, water and other utility services for the existing lift station and sewer line located at the corner of Old Dixie Highway and Tequesta Drive. 11.6. Easement for Encroachments. 11.6.1. Settlement or Movement of Improvements. All the Condominium Property shall be subject to easements for encroachments, which now or hereafter exist, caused by settlement or movement of any improvements upon such areas or improvements contiguous thereto or caused by minor inaccuracies in the building or rebuilding of such improvements. 11.6.2. Air Space. All the Land and improvements thereon, including, but not limited to, the Condominium Property, shall be subject to perpetual easements for encroachments, for so long as such encroachment exists, in favor of each Dwelling Unit and the Dwelling Unit Owners thereof, their family members, guests, invitees and lessees for air space for any balcony of any Dwelling Unit, and the reasonable use, maintenance and repair of same, which extends under, over or through any of the Land and improvements thereon, including, but not limited to, the Condominium Property, including, but not limited to, Common Elements. Such easements shall be appurtenances to and a covenant running with the respective Dwelling Unit in whose favor such easements exist. 11.6.3. Term of Encroachment Easements. The above easements for encroachments shall continue until such encroachments no longer exist. 12. LIABILITY INSURANCE PROVISIONS 111� 12.1. Public Liability Insurance. The Board shall obtain liability insurance in the form generally known as Public Liability and/or Dwelling Unit Owners, Landlord and Tenant Policies, or alternatively, in the event Developer so elects, the Association shall be covered under Developer's insurance, in such amounts NAP:23654:8 17 as it may determine from time to time for the purpose of providing liability insurance coverage for all property and improvements in Tequesta Trace excluding the Dwelling Units; provided, however, that such policy or policies shall not have limits of less than One Million Dollars ($1,000,000) covering all claims for personal injury and One Hundred Thousand Dollars ($100,000) for property damage arising out of a single occurrence. The Board shall collect and enforce the payment of a share of the premium for such insurance from each Dwelling Unit Owner as a part of the Annual Assessment. Said insurance shall include, but not be limited to, legal liability for property damage, bodily injuries and deaths of persons in connection with the operation, maintenance or use of any property or improvements within Tequesta Trace, legal liability arising out of law suits related to employment contracts of the Association, water damage, liability for hazards related to usage and liability for property of others, hired automobile, non -owned automobile and off -premises employee coverage and such other risks as are customarily covered with respect to developments similar to Tequesta Trace in construction, location and use. All such policies shall name the Association (and Developer so long as Developer shall own any of the Condominium Property, as their respective interests may appear) as the insured(s) under such policy or policies. The original or a true copy of each policy shall be held in the office of the Association. The insurance purchased shall contain a "severability of interest endorsement," or equivalent coverage, which would preclude the insurer from denying the claim of a Dwelling Unit Owner because of the negligent acts of either the Association, Developer or any other Dwelling Unit Owner or deny the claim of either Developer or the Association because of the negligent acts of the other or the negligent acts of an Owner. All liability insurance shall contain cross liability endorsements to cover liabilities of the Dwelling Unit Owners as a group to each Dwelling Unit Owner. Each Dwelling Unit Owner shall be responsible for the purchasing of liability insurance for accidents occurring in his own Dwelling Unit, as applicable and, if the Dwelling Unit Owner so determines, for supplementing any insurance purchased by the Association. Notwithstanding the foregoing, in the event the Board determines that the cost of public liability insurance is economically unwarranted, the Board may determine to either reduce the amount of such insurance, increase the deductible amount or discontinue coverage. 12.2. Fidelity Insurance. Adequate fidelity coverage to protect against dishonest acts of the officers and employees of the Association and the Directors and all others who handle and are responsible for handling funds of the Association (whether or not they receive compensation) shall be maintained. Such coverage shall be in the form of fidelity bonds which meet the following requirements: (i) such bonds shall name the Association as an obligee and premiums therefor shall be paid by the Association; (ii) such bonds shall be written in an amount equal to the amount of the annual operating budget at any one time plus reserve funds, but in no event less than the amount required by the Act for each such person; and (iii) such bonds shall contain waivers of any defense based upon the exclusion of persons who serve without compensation from any definition of "employee" or similar expression. Notwithstanding the foregoing, in the event the Association determines that the cost of such insurance is economically unwarranted or is not obtainable, the Association may determine to either reduce the amount of such insurance, increase the deductible amount or discontinue coverage provided coverage is no less than required by the Act. NAP:23654:8 18 12.3. Cancellation Provision. All insurance policies or fidelity bonds purchased pursuant to this Article 12 shall provide that they may not be canceled without at least ten (10) days prior written notice to the Association and to Institutional Mortgagees. 13. PROVISIONS RELATING TO CASUALTY INSURANCE AND DESTRUCTION OF IMPROVEMENTS 13. L Hazard Insurance. Each Dwelling Unit Owner shall be responsible for the purchase of casualty insurance for all of his personal property. The Association shall obtain casualty insurance with such coverage and in such amounts as it may determine from time to time for the purpose of providing casualty insurance coverage for all insurable property and improvements within Tequesta Trace, including Fire and Extended Coverage, Vandalism and Malicious Mischief Insurance, all of which insurance shall insure all of the insurable improvements on or within Tequesta Trace, including personal property owned by the Association, in and for the interest of the Association, all Dwelling Unit Owners and their mortgagees, as their interests may appear, with a company (or companies) acceptable to the standards set by the Board. The Association shall purchase insurance for each Building and all improvements now located or which may hereafter be located, built or placed within Tequesta Trace in an amount equal to one hundred percent (100%) of the "Replacement Value" thereof. The term "Replacement Value" shall mean one hundred percent (100%) of the current replacement costs exclusive of land, foundation, excavation, items of personal property and other items normally excluded from coverage as determined annually by the Board. The Board may determine the kind of coverage and proper and adequate amount of insurance. The casualty insurance shall contain an "agreed amount endorsement" or its equivalent, "inflation guard endorsement," and, if determined necessary, an "increased cost of construction endorsement" or "continuant liability from operation of building laws endorsement" or a "demolition endorsement" or the equivalent. The casualty insurance shall insure the Buildings from loss or damage caused by or resulting from at least the following: fire and other hazards covered by the standard extended coverage endorsement and by sprinkler leakage, windstorm, vandalism, malicious mischief, debris removal and demolition, and such other risks as shall customarily be covered with respect to projects or developments similar to the Buildings in construction, location and use. 13.2. Flood Insurance. If determined appropriate by the Board or if required by any Institutional Mortgagee, the Association shall obtain a master or blanket policy of flood insurance covering all property and improvements in Tequesta Trace, if available and at a reasonable premium, under the National Flood Insurance Program or any other government regulated insurance carrier authorized to conduct business in the State of Florida or a commercial underwriter, which flood insurance shall be in the form of a standard policy issued by a member of the National Flood Insurers Association or such commercial underwriter, and the amount of the coverage of such insurance shall be the lesser of the maximum amount of flood insurance available under such program or one hundred percent (100%) NAP:23654:8 19 of the current replacement cost of all Buildings and other insurable property located in the flood hazard area. 13.3. Form of Policy and Insurance Trustee. The Association may, to the extent possible and not inconsistent with the foregoing, obtain one (1) policy to insure all of the insurable improvements within Tequesta Trace operated by the Association. The premiums for such coverage and other expenses in connection with said insurance shall be paid by the Association and assessed as part of the Annual Assessment. The company (or companies) with which the Association shall place its insurance coverage, as provided in this Declaration, must be a good and responsible company (or companies) authorized to do business in the State of Florida. In addition, the insurance agent must be located in the State of Florida. The Association shall have the right to designate a trustee ("Insurance Trustee") and upon the request of the Institutional Mortgagee holding the highest dollar indebtedness encumbering Dwelling Units within Tequesta Trace, as applicable, ("Lead Mortgagee") shall designate an Insurance Trustee. Thereafter the Association from time to time shall have the right to change the Insurance Trustee to such other trust company authorized to conduct business in the State of Florida or to such other person, firm or corporation as Insurance Trustee as shall be acceptable to the Board and the Lead Mortgagee. The Lead Mortgagee shall have the right, for so long as it holds the highest dollar indebtedness encumbering Dwelling Units within Tequesta Trace, as applicable, to approve: (i) the form of the insurance policies; (ii) the amounts thereof; (iii) the company or companies which shall be the insurers under such policies; (iv) the insurance agent or agents; and (v) the designation of the Insurance Trustee if it deems the use of an Insurance Trustee other than the Board to be necessary, which approval(s) shall not be unreasonably withheld or delayed; provided, however, for so long as Developer owns any Dwelling Unit(s), Developer shall have the right, but not the obligation, to require the Association to designate an Insurance Trustee other than the Board. Notwithstanding anything in this Declaration to the contrary, the Board may act as the Insurance Trustee hereunder unless otherwise required by the Lead Mortgagee or Developer. The Lead Mortgagee shall inform the Association by written notification if it requires the use of an Insurance Trustee other than the Board. If the use of an Insurance Trustee other than the Board is requested in writing, then the Lead Mortgagee shall be deemed to have approved the Insurance Trustee unless the Lead Mortgagee's written disapproval is received by the Association within thirty (30) days after notice from the Association of the identity of the proposed Insurance Trustee. If no Insurance Trustee is required, the Board shall receive, hold and expend insurance proceeds in the manner hereinafter provided as if it were the Insurance Trustee. 13.4. Required Policy Provisions. All such aforesaid policies shall provide that they may not be canceled without at least ten (10) days' prior written notice to the Association and Listed Mortgagees and shall be deposited with the Insurance Trustee upon its written acknowledgment that the policies and any proceeds thereof will be held in accordance with the terms hereof. Said policies shall provide that all insurance proceeds payable on account of loss or damage shall be payable to the Insurance Trustee. In the event of a casualty loss, the Insurance Trustee may deduct from the insurance proceeds collected a reasonable fee for its service as Insurance Trustee. The Association is hereby irrevocably appointed agent for each Dwelling Unit Owner to adjust all claims arising under NAP:23654:8 20 insurance policies purchased by the Association. The Insurance Trustee shall not be liable for payment of premiums, for the renewal or the sufficiency of the policies or for the failure to collect any insurance proceeds. The Association may determine to act as Insurance Trustee, in which event references herein to Insurance Trustee shall refer to the Board. 13.5. Restrictions of Mortgagees. No mortgagee shall have any right to participate in the determination of whether property is to be rebuilt, nor shall any mortgagee have the right to apply insurance proceeds to repayment of its loan unless such proceeds are distributed to Dwelling Unit Owners and/or their respective mortgagees. 13.6. Distribution of Insurance Proceeds and Losses. The duty of the Insurance Trustee shall be to receive any and all proceeds from the insurance policies held by it and to hold such proceeds in trust for the Association, Dwelling Unit Owners and mortgagees under the following terms: 13.6.1. Loss to Dwelling Unit Alone. In the event a loss insured under the policies held by the Insurance Trustee occurs to any improvements within any of the Dwelling Units alone, without any loss to any other improvements within Tequesta Trace, the Insurance Trustee shall immediately pay all proceeds received because of such loss directly to the Dwelling Unit Owners of the Dwelling Units damaged and their mortgagees, if any, as their interests may appear, and it shall be the duty of these Dwelling Unit Owners to use such proceeds to effect necessary repair to the Dwelling Units. The Insurance Trustee, where other than the Association, may rely upon the written statement of the Association as to whether or not there has been a loss to the Dwelling Units alone, the Common Elements or any combination thereof. 13.6.2. Loss of Fifty Thousand Dollars ($50,000) or Less to Dwelling Units and Common Elements. In the event that a loss of Fifty Thousand Dollars ($50,000) or less occurs to improvements within one (1) or more Dwelling Units and to improvements within Common Elements contiguous thereto, or to improvements within the Common Elements, the Insurance Trustee shall pay the proceeds received as a result of such loss to the Association. Upon receipt of such proceeds, the Association will cause the necessary repairs to be made to the improvements within the Common Elements and within the damaged Dwelling Units. In such event, should the insurance proceeds be sufficient to repair the improvements within the Common Elements but insufficient to repair all of the damage within the Dwelling Units, the proceeds shall be applied first to completely repair the improvements within the Common Elements and the balance of the funds (`Balance") shall be apportioned by the Association to repair the damage to the improvements within Dwelling Units, which apportionment shall be made to each Dwelling Unit in accordance with the proportion of damage sustained to improvements within said Dwelling Units as estimated by the insurance company whose policy covers such damage. Any deficiency between the Balance apportioned to a damaged Dwelling Unit and the cost of repair shall be paid by a Special Assessment. NAP:23654:8 21 13.6.3. Loss in Excess of Fifty Thousand Dollars ($50,000) to Dwelling Units and Common Elements. In the event the Insurance Trustee receives proceeds in excess of the sum of Fifty Thousand Dollars ($50,000) as a result of damages to the improvements within the Common Elements and/or Dwelling Units and Common Elements that are contiguous, then the Insurance Trustee shall hold, in trust, all insurance proceeds received with respect to such damage, together with any and all other funds paid as hereinafter provided, and shall distribute the same as follows: (a) The Board shall obtain or cause to be obtained reliable and detailed estimates and/or bids for the cost of rebuilding and reconstructing the damage and for the purpose of determining whether insurance proceeds are sufficient to pay for the same. (b) In the event the insurance proceeds are sufficient to rebuild and reconstruct all the damaged improvements, or upon the collection of the necessary funds that are described in subparagraph 13.6.3 (c) below, then the damaged improvements shall be completely repaired and restored. In this event, all payees shall deliver paid bills and waivers of mechanics' liens to the Insurance Trustee and execute affidavits required by law, by the Association, by any Institutional Mortgagee named on a mortgage endorsement or by the Insurance Trustee, and shall deliver the same to the Insurance Trustee. Further, the Association shall negotiate and obtain a contractor willing to do the work on a fixed price basis or some other reasonable terms under the circumstances, said contractor shall post a performance and payment bond, and the Insurance Trustee shall disburse the insurance proceeds and other funds held in trust in accordance with the progress payments contained in the construction contract between the Association and the contractor. Subject to the foregoing, the Board shall have the right and obligation to negotiate and contract for the repair and restoration of the premises. (c) In the event the insurance proceeds are insufficient to repair and replace all of the damaged improvements within the Common Elements and Dwelling Units contiguous to such damaged Common Elements, the Board shall hold a special meeting to determine a Special Assessment against all of the Dwelling Unit Owners to obtain any necessary funds to repair and to restore such damaged improvements. Upon the determination by the Board of the amount of such Special Assessment, the Board shall immediately levy such Special Assessment against the respective Dwelling Units setting forth the date or dates of payment of the same, and any and all funds received from the Dwelling Unit Owners pursuant to such Special Assessment shall be delivered to the Insurance Trustee and disbursed as provided in subparagraph 13.6.3 (b) immediately preceding. In the event the deficiency between the estimated cost of the repair and replacement of the damaged property and the insurance proceeds exceeds the sum of Twenty -Five Thousand Dollars ($25,000), and three -fourths (3/4) of the Dwelling Unit Owners advise the Board in writing on or before the date for the first payment thereof that they are opposed to a Special Assessment, then the Insurance Trustee shall divide the net insurance proceeds into the shares described in Article 7 hereof and shall promptly pay each share of such proceeds to the Dwelling Unit Owners and mortgagees of record as their interests may appear ("Insurance Proceeds Distribution"). In making any such Insurance Proceeds Distribution to the Dwelling Unit Owners and mortgagees, the Insurance Trustee may rely upon a certificate of an abstract company as to the names of the then Dwelling Unit Owners and their respective mortgagees. Any Insurance Proceeds Distribution shall also require the approval of the Lead Mortgagee. NAP:23654:8 22 '1-4**N 13.6.4. Distribution of Excess Funds. In the event that after the completion of and payment for the repair and reconstruction of the damage to the damaged property and after the payment of the Insurance Trustee's fee with respect thereto any excess insurance proceeds remain in the hands of the Insurance Trustee, then such excess shall be disbursed in the manner of the Insurance Proceeds Distribution. However, in the event such repairs and replacements were paid for by any Special Assessment as well as insurance proceeds, then it shall be presumed that the monies disbursed in payment of any repair, replacement and reconstruction were first disbursed from insurance proceeds and any remaining funds held by the Insurance Trustee shall be distributed to the Dwelling Unit Owners in proportion to their contributions by way of Special Assessment. 13.6.5. Institutional Mortgagees. In the event the Insurance Trustee has on hand, within ninety (90) days after any casualty or loss, insurance proceeds and, if necessary, funds from any Special Assessment sufficient to pay fully any required restoration and repair with respect to such casualty or loss, then no mortgagee shall have the right to require the application of any insurance proceeds or Special Assessment to the payment of its loan. Any provision contained herein for the benefit of any mortgagee may be enforced by a mortgagee. 13.6.6. Repair of Damaged Property. Any repair, rebuilding or reconstruction of damaged property shall be substantially in accordance with the architectural plans and specifications for Tequesta Trace, as: (i) originally constructed; (ii) reconstructed; or (iii) depicted in new plans and specifications approved by the Board; provided, however, any material or substantial change in new plans and specifications approved by the Board from the plans and specifications of Tequesta Trace as previously constructed shall require approval by the Lead Mortgagee. 13.6.7. Determination of Damage. The Board shall determine, in its sole and absolute discretion, whether damage or loss has occurred to improvements within Dwelling Units alone, Common Elements alone or to improvements within any combination thereof. 13.6.8. Insurance Amounts. Notwithstanding anything in this Article 13 to the contrary, the amounts set forth for the purchase of insurance in this Article 13 are the minimum amounts to be purchased. Therefore, Dwelling Unit Owners or the Association, as the case may be, may purchase insurance in excess of the amounts set forth herein. The amounts set forth do not constitute a representation or warranty of any kind by Developer or the Association as to the proper amount or kinds of insurance required. 13.6.9. Miscellaneous Policy Requirements. Policies insuring the property within Tequesta Trace purchased pursuant to the requirements of this Article 13 shall provide that any insurance trust agreement shall be recognized; the right of subrogation against Dwelling Unit Owners will be waived; the insurance will not be prejudiced by any acts or omission of individual Dwelling Unit Owners who are not under the control of the Association; and the policy will be primary, even if a Dwelling Unit Owner has other insurance that covers the same loss. 11�N 13.6.10. Master Form of Insurance. Nothing contained herein shall prohibit the Association from obtaining a "Master" or `Blanket" form of insurance to meet the requirements of this Article 13, provided that the coverages required hereunder are fulfilled. NAP:23654:8 23 14. PROVISIONS RELATING TO CONDEMNATION OR EMINENT DOMAIN PROCEEDINGS 14.1. Proceedings. The Association shall represent the Dwelling Unit Owners in the condemnation proceedings or in negotiations, settlements and agreements with the condemning authority for acquisition of the Common Elements or any parts thereof by the condemning authority. 14.2. Deposit of Awards With Insurance Trustee. The taking of any portion of the Condominium Property by condemnation shall be deemed to be a casualty, and the awards for that taking shall be deemed to be proceeds from insurance on account of the casualty and shall be deposited with the Insurance Trustee. Although the awards may be payable to Dwelling Unit Owners, the Dwelling Unit Owners shall deposit the awards with the Insurance Trustee; and in the event of failure to do so, in the discretion of the Board, a special charge shall be made against a defaulting Dwelling Unit Owner in the amount of his award, or the amount of that award shall be set off against the sums hereafter made payable to that Dwelling Unit Owner. n 14.3. Disbursement of Funds. If the Condominium is terminated in accordance with the provisions of this Declaration after condemnation, the proceeds of the awards and Special Assessments, if any, shall be deemed to be Condominium Property and shall be divided into the shares described in the Declaration and distributed to the Dwelling Unit Owners and mortgagees as their interests may appear. If the Condominium is not terminated after condemnation, the size of the Condominium will be reduced, the owners of the condemned Dwelling Units will be made whole and the Condominium Property damaged by the taking will be made usable in the manner provided below. 14.4. Dwelling Unit Reduced, But Tenantable. If the taking reduces the size of a Dwelling Unit ("Affected Dwelling Unit") and the remaining portion of the Affected Dwelling Unit can be made tenantable, the award for the taking of a portion of the Affected Dwelling Unit shall be used for the following purposes in the order stated and the following changes shall be effected in the Condominium: 14.4.1. Affected Dwelling Unit Made Tenantable. The Affected Dwelling Unit shall be made tenantable. If the cost of the restoration exceeds the amount of the award, the additional funds required shall be collected as a special charge. 14.4.2. Excess Distributed to Dwelling Unit Owner and Institutional Mortgagee. The balance of the award, if any, shall be distributed to the Dwelling Unit Owner of the Affected Dwelling Unit and to each Institutional Mortgagee of the Affected Dwelling Unit, the remittance being made payable to the Dwelling Unit Owner and Institutional Mortgagees as their interests may appear. NAP:23654:8 24 14.4.3. Reduction in Percentage of Common Elements. If the floor area of the Affected Dwelling Unit is reduced by more than ten percent (10%) by the taking, the number representing the share in the ownership of the Common Elements appurtenant to the Affected Dwelling Unit shall be reduced ("Reduction in Percentage of Common Elements'D in the proportion by which the floor area of the Affected Dwelling Unit is reduced by the taking, and then the shares of all Dwelling Units in the ownership of the Common Elements shall be restated with the Reduction in Percentage of Common Elements being allocated to all the Dwelling Units in proportion to their share of ownership in the Common Elements. 14.5. Affected Dwelling Unit Made Untenantable. If the taking is of the entire Affected Dwelling Unit or so reduces the size of an Affected Dwelling Unit that it cannot be made tenantable, the award for the taking of the Affected Dwelling Unit shall be used for the following purposes in the order stated and the following changes shall be effected in the Condominium: 14.5.1. Payment to Dwelling Unit Owner and Institutional Mortgagee. The market value of the Affected Dwelling Unit immediately prior to the taking shall be paid to the Dwelling Unit Owner thereof and to each Institutional Mortgagee thereof as their interests may appear. 14.5.2. Remaining Portion of Affected Dwelling Unit. The remaining portion of the Affected Dwelling Unit, if any, shall be released by the Institutional Mortgagee and conveyed by the Dwelling Unit Owner to the Association. Such remaining portion of the Affected Dwelling Unit shall become a part of the Common Elements and shall be placed in a condition approved by the Board and the Condominium Documents shall be amended to reflect the addition of such Common Elements; provided that if the cost of the work shall exceed the balance of the fund from the award for the taking after the payment set forth in subparagraph 14.4.1 above, the work shall be approved in the manner required for further improvement of the Common Elements. 14.5.3. Adjustment in Shares of Common Elements. The shares in the Common Elements appurtenant to the Dwelling Units that continue as part of the Condominium shall be adjusted to distribute the ownership of the Common Elements from the Affected Dwelling Units among the reduced number of Dwelling Units. The shares of the continuing Dwelling Units in the ownership of the Common Elements shall be restated with the percentage of ownership in the Common Elements of the Affected Dwelling Unit being allocated to all the continuing Dwelling Units in proportion to their relative share of ownership in the Common Elements. 14.5.4. Insufficient Award. If the amount of the award for the taking is not sufficient to pay the market value of the Affected Dwelling Unit to the Dwelling Unit Owner and to condition the remaining portion of the Affected Dwelling Unit for use as a part of the Common Elements, the additional funds required for those purposes shall be raised by Special Assessments against all of the Dwelling Unit Owners who will continue as Dwelling Unit Owners after the changes in the Condominium effected by the taking. The Assessments shall be made in proportion to the shares of those Dwelling Unit Owners in the Common Elements after the changes effected by the taking. NAP:23654:8 25 14.5.5. Determination of Market Value of Affected Dwelling Unit. If the market value of an Affected Dwelling Unit prior to the taking cannot be determined by agreement between the Dwelling Unit Owner, the Institutional Mortgagees of the Affected Dwelling Unit and the Association within thirty (30) days after notice by either parry, the value shall be determined by arbitration in accordance with the then existing rules of the American Arbitration Association, except that the arbitrators shall be two appraisers appointed by the American Arbitration Association who shall base their determination upon an average of their appraisals of the Affected Dwelling Unit; and the determination of the arbitrators shall be conclusive upon the parties and judgment upon the same may be entered in any court having jurisdiction thereof. The cost of arbitration proceedings shall be assessed against all Dwelling Units in proportion to the shares of the Dwelling Units in the Common Elements as they exist prior to the changes effected by the taking. 14.6. Taking of Common Elements. Awards for taking of Common Elements shall be used to make the remaining portion of the Common Elements usable in the manner approved by the Board; provided, that if the cost of the work shall exceed the balance of the funds from the awards for the taking, the work shall be approved in the manner required for further improvement of the Common Elements. The balance of the awards for the taking of Common Elements, if any, shall be distributed to the Dwelling Unit Owners in the shares in which they own the Common Elements after adjustment of these shares on elo"*N account of the condemnation and to Institutional Mortgagees as their interests may appear. 14.7. Amendment of Declaration. The changes in Dwelling Units, in the Common Elements and in the ownership of the Common Elements that are affected by the condemnation shall be evidenced by an amendment to the Declaration that need be approved only by a majority of the Board unless written approvals from Developer and/or Listed Mortgagees are also required pursuant to this Declaration. Such amendment shall be evidenced by a certificate executed by the Association in recordable form in accordance with the Act, and a true copy of such amendment shall be mailed via first class mail by the Association to Developer, all Dwelling Unit Owners and Listed Mortgagees ("Interested Parties"). The amendment shall become effective upon the recording of such certificate amongst the Public Records of the County; provided, however, such amendment shall not be recorded until thirty (30) days after the mailing of a copy thereof to the Interested Parties unless such thirty (30)-day period is waived in writing by the Interested Parties. 15. PROVISION FOR APPORTIONMENT OF TAX OR SPECIAL ASSESSMENT IF LEVIED AND ASSESSED AGAINST THE CONDOMINIUM AS A WHOLE 15.1. New Total Tax. In the event that any taxing authority having jurisdiction over the Condominium shall levy or assess any tax or special assessment against the Condominium as a whole as opposed to levying and assessing such tax or special assessment against each Dwelling Unit and its appurtenant undivided interest in Common Elements, as now provided by law ("New Total Tax"), then such New Total Tax shall be paid as a Common Expense by the Association, and any taxes or special NAP:23654:8 26 assessments which are to be so levied shall be included wherever possible in the estimated annual "Budget" (as hereinafter defined) of the Association or shall be separately levied and collected as a Special Assessment by the Association against all of the Dwelling Unit Owners of all Dwelling Units, as applicable. Each Dwelling Unit Owner shall be assessed by and shall pay to the Association a percentage of the New Total Tax equal to that Dwelling Unit Owner's percentage interest in the Common Elements. In the event that any New Total Tax shall be levied, then the assessment by the Association shall separately specify and identify the portion of such assessment attributable to such New Total Tax and such portion shall be and constitute a lien prior to all mortgages and encumbrances upon any Dwelling Unit, as applicable, and its appurtenant percentage interest in Common Elements, regardless of the date of the attachment and/or recording of such mortgage or encumbrances, to the same extent as though such portion of New Total Tax had been separately levied by the taxing authority upon each Dwelling Unit, as applicable, and its appurtenant percentage interest in Common Elements. 15.2. Personal Property Taxes. All personal property taxes levied or assessed against personal property owned by the Association and all federal and state income taxes levied and assessed against the Association shall be paid by the Association and shall be included as a Common Expense in the Budget of the Association. 16. OCCUPANCY AND USE RESTRICTIONS In order to preserve the values and amenities of the Condominium, the following provisions shall be applicable to the Condominium Property: 16.1. Single -Family Use. The Dwelling Units shall be used for single-family residences only. No separate part of a Dwelling Unit may be rented and no transient (as defined in Chapter 509, Florida Statutes) may be accommodated therein for compensation or commercial purposes. No trade, business, profession or any other type of commercial activity shall be carried on in the Dwelling Units; provided, however, a Dwelling Unit Owner may use a room within a Dwelling Unit as an office for conducting personal business if such personal business does not require contact at the Dwelling Unit with customers or clientele of the Dwelling Unit Owner, nor be of such a pervasive nature as to dominate the residential character of the occupancy of such Dwelling Unit. Any such personal office use shall not be deemed a commercial activity in violation of this Paragraph 16.1. Such personal business use must, nonetheless comply with any applicable governmental regulation. No Dwelling Unit may be rented for a term of less than one (1) month and no Dwelling Unit may be rented more than three (3) times in any twelve (12) month period. A Dwelling Unit owned by a corporation, partnership or other legal entity, as the case may be, may be occupied by the person indicated in the Voting Certificate on file with the Association and his or her family, and any lessees of the corporation, partnership, or other legal entity, as the case may be, who otherwise qualify as provided in the Condominium Documents. NAP:23654:8 27 16.2. Occupancy of Dwelling Unit. A Dwelling Unit Owner shall not permit or suffer anything to be done or kept in his Dwelling Unit which will: (i) increase the insurance rates on his Dwelling Unit or the Common Elements; (ii) obstruct or interfere with the rights of other Dwelling Unit Owners or the Association; or (iii) annoy other Dwelling Unit Owners by unreasonable noises or otherwise. A Dwelling Unit Owner shall not commit or permit any nuisance, immoral or illegal act in his Dwelling Unit or on the Common Elements. 16.3. Signs. A Dwelling Unit Owner (with the exception of Developer, for so long as Developer is a Dwelling Unit Owner) shall show no sign, advertisement or notice of any type on the Common Elements or in or upon his Dwelling Unit so as to be visible from the Common Elements, or any public way, except as may be previously and specifically approved in writing by the Board. Developer specifically reserves the right to place and maintain identifying or informational signs on any building located on the Condominium Property as well as any signs in connection with its sales activities. 16.4. Animals. ^, Except as provided under the rules and regulations promulgated by the Association from time to time, a Dwelling Unit Owner and/or resident shall not keep, raise or breed any pet or other animal, livestock or poultry upon any portion of the Condominium Property. No Dwelling Unit Owner is permitted to keep a domestic pet in his Dwelling Unit either temporarily or permanently without the prior written permission of the Board. Such permission in one instance shall not be deemed to institute a blanket permission in any other instance and any such permission may be revoked at any time in the sole discretion of the Board. However, under no circumstances may any breed of dog commonly known as a pit bull be permitted on any portion of Tequesta Trace. Any pet must be carried or kept on a leash when outside of a Dwelling Unit. No pet shall be kept tied outside of a Dwelling Unit or in any screened porch or patio, unless someone is present in the Dwelling Unit. A Dwelling Unit Owner shall immediately pick up and remove any solid waste deposited by his pet. The Dwelling Unit Owner shall indemnify the Association and hold it harmless against any loss or liability of any kind or character whatsoever arising from or growing out of having any animal in Tequesta Trace. If a dog or any other animal becomes obnoxious to the Dwelling Unit Owners by barking or otherwise, the Dwelling Unit Owner thereof must cause the problem to be corrected; or, if it is not corrected, the Dwelling Unit Owner, upon written notice by the Association, will be required to permanently remove the animal from the premises. No birds or exotic pets such as snakes and reptiles shall be permitted on any portion of the Condominium Property. The Association will promulgate rules and regulations from time to time designating other rules as necessary to regulate pets. NAP:23654:8 28 16.5. Clotheslines. No clothesline or other similar device shall be allowed in any portion of the Common Elements. Clotheslines within a Dwelling Unit shall be concealed from view from all portions of Tequesta Trace. 16.6. Window Decor. Window treatments shall consist of drapery, blinds, decorative panels or tasteful other window covering, and no newspaper, aluminum foil, sheets or other temporary window treatments are permitted, except for periods not exceeding two (2) weeks after a Dwelling Unit Owner or tenant first moves into a Dwelling Unit or when permanent window treatments are being cleaned or repaired. 16.7. Removal of Sod and Shrubbery; Alteration of Drainage, etc. Except for Developer's acts and activities with regard to the development of Tequesta Trace, no sod, top soil, muck, trees or shrubbery shall be removed from Tequesta Trace and no change in the condition of the soil or the level of land of Tequesta Trace shall be made which would result in any permanent change in the flow or drainage of surface water within Tequesta Trace without prior written consent of the Board. 16.8. Antenna, Aerial and Satellite Dish. No outside television, radio, or other electronic towers, aerials, antennae, satellite dishes or device of any type for the reception or transmission of radio or television broadcasts or other means of communication shall hereafter be erected, constructed, placed or permitted to remain on any portion of the Condominium Property or upon any improvements thereon, unless expressly approved in writing by the Association, except that this prohibition shall not apply to those satellite dishes that are eighteen (18") inches in diameter or less, and specifically covered by 47 C.F.R. Part 1, Subpart S, Section 1.4000, as amended, promulgated under the Telecommunications Act of 1996, as amended from time to time. The Association is empowered to adopt rules governing the types of antennae, restrictions relating to safety, location and maintenance of antennae. The Association may also adopt and enforce reasonable rules limiting installation of permissible dishes or antennae to certain specified locations, not visible from the street or neighboring properties, and integrated with the Condominium Property and surrounding landscape, to the extent that reception of an acceptable signal would not be unlawfully impaired by such rules. Any approved antennae shall be NAP:23654:8 29 /e—**N installed in compliance with all federal, state and local laws and regulations, including zoning, land -use and building regulations. This Section 16.8 shall not apply to Developer. 16.9. Garbage, Trash and Recycling. Each Dwelling Unit Owner shall regularly pick up all garbage, trash, refuse or rubbish around his Dwelling Unit, and no Dwelling Unit Owner or resident shall place or dump any garbage, trash, refuse, oil or other materials on any other portions of Tequesta Trace, including any portion of the Condominium Property or the Common Elements. Garbage, trash, refuse, rubbish or recyclable materials that is required to be placed at the front of the Dwelling Unit in order to be collected may be placed and kept at the front of the Dwelling Unit after 5:00 p.m. on the day before the scheduled day of collection but not sooner, and any trash facilities must be removed on the collection day after the pick up. The Village of Tequesta requires that its residents recycle according to the requirements of the local government. All Garbage, trash, refuse, rubbish or recyclable materials must be placed in appropriate trash facilities or bags. All containers, dumpsters or garbage facilities must be stored inside the garage and kept in a clean and sanitary condition. No noxious or offensive odors shall be permitted. 16.10. Radio Transmission. No ham radios or radio transmission equipment shall be operated or permitted to be operated within Tequesta Trace without the prior written consent of the Board. 16.11. Vehicles. No boats, boat trailers, recreational vehicles, house trailers or motor homes shall be permitted on any portion of the Condominium Property. No maintenance or repairs shall be done upon or to such vehicles. The Association shall have the right to authorize the towing away of any vehicles which violate this Declaration or the rules and regulations of the Association, with the costs to be bome by the Dwelling Unit Owner or violator. In addition, the Board shall adopt rules and regulations from time to time regulating and limiting the size, weight, type and place and manner of operation of vehicles within Tequesta Trace. 16.12. Garages. No garage, other than garages constructed by Developer, shall be erected which is separate from the Dwelling Unit. No portion of a garage originally intended for the parking of an automobile shall be converted to other uses such as living area, storage area, workshop, recreation room or business uses. No individual air conditioning units which are visible from outside the Dwelling Unit shall be permitted in a garage. All garage doors shall remain closed when not in use for ingress and egress. All garage door openers installed must be either belt driven or screw driven. 16.13. Flooring. An Owner shall not install any floor covering in the Home other than carpeting (such as wood or tile) in any room other than the bathroom, kitchen/breakfast area or laundry/utility area or other than in a Home which does not have another Home below it, without the prior written approval of the Association. The Association may require that soundproofing insulation be placed under such alternate floor covering before installation. If an Owner installs alternate floor covering without the prior written consent of the Association or without the insulation required by the Association, then the Association shall have the right to cause such Owner to remove the alternate floor covering. Under no circumstances shall an Owner be permitted to install carpet on his/her balcony. NAP:23654:8 30 t� 16.14. Projections. No Dwelling Unit Owner shall cause anything to project out of any window or door except as may be approved in writing by the Association. 16.15. Condition of Dwelling Units. Each Dwelling Unit Owner shall keep his Dwelling Unit in a good state of preservation and cleanliness and shall not sweep or throw or permit to be swept or thrown therefrom or from the doors or windows thereof any dirt or other substances. 16.16. Hurricane Season/Hurricane Shutters. 16.16.1. Hurricane Season. Each Dwelling Unit Owner who plans to be absent from his Dwelling Unit during the hurricane season must prepare his Dwelling Unit prior to his departure by removing all furniture, potted plants and other movable objects, if any, from his patio, terrace or porch, if any, and by designating a responsible firm or individual satisfactory to the Association to care for his Dwelling Unit should the Dwelling Unit suffer hurricane damage. 16.16.2. Hurricane Shutters. Any hurricane or other protective devices visible /� from outside a Unit shall be of a type approved by the ARC (as hereinafter defined). Panel, accordion and roll -up style hurricane shutters, if approved, may not be left closed during hurricane season. Any such approved hurricane shutters may be installed or closed up to seventy-two (72) hours prior to the expected arrival of a hurricane and must be removed or opened within seventy-two (72) hours after the end of a hurricane watch or warning or as the Board may determine otherwise. 16.17. Structural Modifications. A Dwelling Unit Owner may not make or cause to be made any structural modifications to his Dwelling Unit without the Association's prior written consent, which consent may be unreasonably withheld. 16.18. Board's Rule -Making Power. The Association, through its Board, may, from time to time, promulgate such other rules and regulations with respect to the Condominium and other portions of Tequesta Trace as it determines to be in the best interests of Tequesta Trace, the Condominium and the Dwelling Unit Owners. The Board may promulgate, modify, alter, amend or rescind such rules and regulations provided such promulgation, modifications, alterations and amendments: (i) are consistent with the use covenants set forth in the Condominium Documents; (ii) apply equally to all lawful Tequesta Trace residents without discriminating on the basis of whether a Dwelling Unit is occupied by a Dwelling Unit Owner or his lessee; and (iii) in Developer's opinion, for so long as Developer holds any Dwelling Units for sale in the ordinary course of business, would not be detrimental to the sales of Dwelling Units by Developer. 16.19. Limitations. NAP:23654:8 31 Notwithstanding any other rule, regulation, or restriction to the contrary herein contained, the Board shall make reasonable accommodations in the rules, regulations or restrictions, if such accommodations may be necessary to afford a handicapped person equal opportunity to use and enjoy the Condominium Property and other portions of Tequesta Trace. 17. ARCHITECTURAL REVIEW CONBUTTEE 17.1. Architectural Review Committee; Improvements to Dwelling Units, Etc. In order to preserve the values and provide for the uniform appearance of Tequesta Trace, the architectural review and control functions of Developer and the Association herein set forth shall be administered and performed by the Architectural Review Committee ("ARC") which shall be established as follows: 17.1.1. The Architectural Review Committee. Initially, the ARC shall consist of not less than three (3) nor more than seven (7) members designated by Developer who may be employees of Developer or members of the Board but who need not be Dwelling Unit Owners or members of the Board. Developer shall retain the power to replace such designees and may in its discretion increase the number of members on the ARC. Upon the resignation or replacement of any 1,N member of the ARC, the Board shall place or cause to be placed in the books of the Association a notice of such resignation or replacement thereof together with a Notice of Appointment as to the successor of the departing ARC member, both of which shall be signed by Developer, or its assignee, pursuant to subparagraph 17.1.1.1 hereof. 17.1.1.1. For so long as Developer is entitled to select members of the ARC, Developer may, at Developer's sole discretion and for such period as Developer may determine, assign said right to appoint ARC members to a management or other non -Developer entity. Said assignee shall be solely responsible for the selection and actions of the ARC during the period of assignment. Notice of such assignment shall be given to the Board, which shall piace, or cause to be placed, any such notice in the books of the Association. 17.1.1.2. Notwithstanding anything herein to the contrary, at such time as Developer no longer owns any portion of the Property, or when Developer voluntarily so elects, whichever shall first occur ("ARC Turnover Date"), Developer shall assign to the Association the right to appoint members of the ARC, whereupon the Board shall thereafter appoint the members of the ARC. 17.1.2. The Architectural Review Committee Action. A majority of the members of the ARC may designate a member of the ARC to act for it subject to Developer's approval. Approval or disapproval by a majority of the members of the ARC shall constitute the official approval or disapproval of the ARC. In the event of the death or resignation of any member of the ARC prior to the assignment of Developer's right to appoint ARC members pursuant to subparagraph 17.1.1.2 hereinabove, Developer shall have the full authority to designate a successor. NAP:23654:8 32 17.1.3. Requirement of The Architectural Review Committee Approval. Except for Dwelling Units and improvements constructed, installed or placed by Developer or with the approval of Developer, and additions, alterations, modifications and changes to any of the foregoing by Developer or with the approval of Developer (collectively, "Developer Improvements"), which Developer Improvements are not subject to the approval of the ARC and are hereby deemed to conform to the plan of development for Tequesta Trace, no improvements of any kind including, without limitation, any building, shed, play structure, wall, topographical feature, mailbox, landscaping, fence, swimming pool, tennis court or screened enclosure shall be erected, placed or maintained, and no addition, alteration, modification or change to any such improvement shall be made without the prior written approval of the ARC, including, but not limited to, painting the Dwelling Unit in a color other than the color originally placed by Developer on the painted surface. 17.1.4. Method of Obtaining The Architectural Review Committee Approval. In order to obtain the approval of the ARC, two (2) complete sets of plans and specifications ("Plans") for proposed construction shall be submitted to the ARC for its review. The Plans shall include, as appropriate, the proposed location, grade, elevations, shape, dimensions, exterior color plans, approximate costs, and nature, type and color of materials to be used. The ARC may also require the submission of additional information and materials as may be reasonably necessary for the ARC to evaluate the proposed Plans. The ARC shall review and approve or disapprove all Plans submitted to it for any proposed improvement, alteration or addition solely on the basis of aesthetic standards as to the aesthetic quality of materials and workmanship to be used, suitability, uniformity and harmony of location, structure and external design in relation to surrounding topography and structures and the overall benefit or detriment which would result to the Property as a whole. The ARC shall take into consideration the aesthetic aspects of the architectural design, placement of buildings, landscaping, color schemes, exterior finishes and materials and similar features and shall not be responsible for reviewing, nor shall its approval of any Plans or design be deemed approval of, any design or Plans from the standpoint of structural safety or conformance with building or other codes. 17.1.5. Approval or Disapproval by the Architectural Review Committee. The ARC shall have the right to refuse to approve any proposed Plans which, in its sole discretion, are not suitable or desirable. In approving or disapproving Plans, the ARC shall consider the suitability of the proposed improvements and/or Plans, the site upon which the proposed improvements are to be erected, the harmony thereof with the surrounding area, property, Dwelling Units, and other improvements and the effect thereof on the adjacent or neighboring property. Any and all approvals or disapprovals of the ARC shall be in writing and shall be sent to the Board and to each respective Dwelling Unit Owner submitting same. In the event the ARC fails to approve or to disapprove in writing any Plans forty-five (45) days after submission to the ARC of the Plans and any and all other reasonably requested information and materials related thereto and delivery of a written request for approval or disapproval to the ARC by Dwelling Unit Owner or Dwelling Unit Owner's agent or attorney, then said Plans shall be deemed to have been approved by the ARC. All construction and landscaping shall be done in accordance with the Plans approved by the ARC, unless a deviation therefrom has been approved in writing by the ARC. In the event the ARC disapproves any Plans submitted to it ("Disapproval"), then in such event, the ARC shall notify said Dwelling Unit Owner in writing of such disapproval and the reason therefore. Said Dwelling Unit Owner may thereafter request reconsideration, by Developer until the ARC Turnover Date and thereafter by the Board, NAP:23654:8 33 within forty-five (45) days of the Disapproval by submitting to Developer or the Board, as the case may be, a copy of the Plans accompanied with a written statement setting forth the grounds for the appeal. If not appealed to Developer or the Board, as the case may be, within said forty-five (45) day period, such Disapproval by the ARC shall be final and binding on all parties concerned therewith. Developer or the Board, as the case may be, shall have forty-five (45) days to approve or disapprove the Plans. In approving or disapproving any Plans on appeal, Developer's or Board's decision, as the case may be, shall be governed by the same factors that the ARC is required to consider. In no event, however, shall any improvement be erected or be allowed to remain which violates any conditions or restrictions contained in this Declaration, any other of the Condominium Documents or any applicable zoning or building ordinance or regulation. 17.1.6. The Architectural Review Committee Standards. The ARC is empowered to publish or modify from time to time design and development standards for Tequesta Trace including, but not limited to, standards for the following ("Standards"): (i) architectural design of improvements including, but not limited to, design standards for any Dwelling Unit or other improvement constructed within the Property; (ii) walls and similar structures; (iii) exterior building materials and colors; (iv) exterior topography and landscaping; (v) exterior appurtenances relating to utility installation; (vi) signs and graphics, mailboxes and exterior lighting; (vii) building setbacks, pools and pool decks, side yards and related height, bulk and design criteria; (viii) pedestrian and bicycle ways, sidewalks and pathways; and (ix) all buildings, topography features, landscaping and improvements on lands owned or controlled by the Association. All such Standards shall provide for a uniform appearance of all improvements, consistent with the overall appearance of Tequesta Trace. A copy of the Standards promulgated by the ARC shall be approved by Developer prior to the ARC Turnover Date and thereafter by the Board. A Dwelling Unit Owner may obtain a copy of the Standards from the Association by making a written request therefor. The ARC may authorize, in a reasonable manner so as not to destroy the general scheme or plan of development of Tequesta Trace, variances from compliance with any Standards which it has promulgated pursuant hereto when circumstances such as topography, natural obstructions, hardship, aesthetics or environmental considerations may require. If any such variance is granted, no violation of the restrictions contained in this Declaration shall be deemed to have occurred with respect to the matter for which the variance was granted. The granting of such a variance shall not operate to waive any of the terms and provisions of this Declaration for any purpose except as to that particular property and particular provision hereof or Standards promulgated hereby which are covered by the variance. Such variance shall be evidenced in writing and executed by the members of the ARC. 17.1.7. Liability; Indemnification. The ARC, the Board, the Association and Developer do not determine or assume any responsibility for the quality of construction or structural soundness of any improvements and no obligation or liability relating to construction of any improvements shall result from review or approval of any Plans by the ARC, Board, Association, or Developer. Furthermore, the ARC, the Board, the Association, and Developer do not evaluate Plans to determine whether the Plans satisfy all applicable governmental requirements. No member of the ARC, the Board, the ARC's duly authorized representative, the Association, nor Developer shall be liable to any Dwelling Unit Owner or any other person or entity for any loss, damage, injury or expense arising out of or in any way connected with the performance of said party's duties hereunder, unless due to willful misconduct. Each and every member of the ARC, including, but not limited to, members designated by Developer, shall be indemnified by the Association and the NAP:23654:8 34 Wo Dwelling Unit Owners against all costs, expenses and liabilities, including Legal Fees reasonably incurred by or imposed upon said members in connection with any proceeding, litigation or settlement in which said member becomes involved by reason of being or having been a member or representative of the ARC, the Board, or Developer which reviewed an appeal of a ARC decision, or any settlement thereof. The foregoing provisions for indemnification shall apply whether or not said member is a member or representative of the ARC, the Board, or Developer which reviewed an appeal of a ARC decision, or any settlement thereof at the time such expenses are incurred. Notwithstanding the above, in instances where such an individual admits or is adjudged guilty of willful misfeasance or malfeasance in the performance of said member's duties, the indemnification provisions of this Declaration shall not apply; otherwise, the foregoing rights to indemnification shall be in addition to and not exclusive of any and all rights of indemnification to which a member of the ARC may be entitled whether by statute or common law or other provision of the Condominium Documents. 17.1.8. Enforcement. There is specifically reserved unto the ARC the right of entry and inspection upon any Dwelling Unit or other portion of the Property for the purpose of determination of whether there exists any construction of any improvement which violates the terms of any approval by the ARC or the terms of this Declaration or of any other covenants, conditions, and restrictions to which the deed associated with such Dwelling Unit or other instrument of conveyance makes reference. Except in emergencies, any exercise of the right of entry and inspection by the ARC hereunder shall be made only upon reasonable notice given to the Dwelling Unit Owner of record at least twenty-four (24) hours in advance of such entry. The ARC is specifically empowered to enforce the provisions of this Declaration by any legal or equitable remedy and in the event it becomes necessary to resort to litigation to determine the propriety of any constructed improvement, or to remove any unapproved improvement. The prevailing party in such litigation shall be entitled to recover all Legal Fees in connection therewith. The Association shall indemnify and hold harmless the ARC from all costs, expenses and liabilities, including Legal Fees incurred by virtue of any member of the ARC's service as a member of the ARC. 18. MAINTENANCE AND REPAIR PROVISIONS 18.1. By Dwelling Unit Owners. 18.1.1. Maintenance and Repair. Each Dwelling Unit Owner shall maintain in good condition, repair and replace at his expense all portions of his Dwelling Unit, including any screening on his patio, terrace or porch, all window panes, window screens and all interior surfaces within or surrounding his Dwelling Unit (such as the surfaces of the walls, ceilings and floors), walkway and all exterior doors, casings and hardware therefor, including garage door openers which are installed by the Owner which must be either belt driven or screw driven; maintain and repair the fixtures therein, including the air conditioning equipment; and pay for any utilities which are separately metered to his Dwelling Unit. Every Dwelling Unit Owner must perform promptly all maintenance and repair work within his Dwelling Unit, as aforesaid, which if not performed would affect the Condominium Property, Tequesta Trace in its entirety or a Dwelling Unit belonging to n another NAP:23654:8 35 Dwelling Unit Owner. Each Dwelling Unit Owner shall be expressly responsible for the damages and liabilities that his failure to perform his above -mentioned responsibilities may engender. Said Dwelling Unit shall be maintained and repaired in accordance with the building plans and specifications utilized by Developer, copies of which are to be on file in the office of the Association, except for changes or alterations approved by the Board as provided in this Declaration. 18.1.2. Alterations. No Dwelling Unit Owner shall make any alterations in the Building or the Common Elements which are to be maintained by the Association or remove any portion thereof or make any additions thereto or do anything which would or might jeopardize or impair the safety or soundness of the Building, the Common Elements, the Limited Common Elements or which, in the sole opinion of the Board, would detrimentally affect the architectural design of the building without first obtaining the written consent of the Board. 18.1.3. Painting and Board Approval. No Dwelling Unit Owner shall paint, refurbish, stain, alter, decorate, repair, replace or change the Common Elements or any outside or exterior portion of the Building maintained by the Association, including terraces, balconies, porches, doors or window frames (except for replacing window panes), etc. No Dwelling Unit Owner shall have any exterior lighting fixtures, mail boxes, window screens, screen doors, doorbells, awnings, hurricane shutters, hardware or similar items installed which are not consistent with the general architecture of the Building maintained by the Association without first obtaining specific written approval of the Board. The Board shall not grant approval if, in its opinion, the effect of any of the items mentioned herein will be unsightly as to the portion of the Building maintained by the Association and unless such items substantially conform to the architectural design of the Building and the design of any such items which have previously been installed at the time the Board approval is requested. 18.1.4. Duty to Report. Each Dwelling Unit Owner shall promptly report to the Association or its agents any defect or need for repairs on the Condominium Property or other portions of Tequesta Trace the responsibility for the remedying of which is that of the Association. 18.1.5. Use of Licensed Plumbers and Electricians. No Dwelling Unit Owner shall have repairs made to any plumbing or electrical wiring within a Dwelling Unit, except by licensed plumbers or electricians authorized to do such work by the Board. The provisions as to the use of a licensed plumber or electrician shall not be applicable to any Institutional Mortgagee or to Developer. Plumbing and electrical repairs within a Dwelling Unit shall be paid for by and shall be the financial obligation of the Dwelling Unit Owner, unless such repairs are made in a Dwelling Unit to plumbing and electrical systems servicing more than one (1) Dwelling Unit. 18.1.6. Access by Association. Each Dwelling Unit Owner shall permit the Association to have access to his Dwelling Unit from time to time during reasonable hours when necessary for the maintenance, repair or replacement of any Common Elements or for making emergency repairs therein necessary to prevent damage to the Common Elements or to another Dwelling Unit. 18.1.7. Air -Conditioning. Air conditioning units and service lines regarding any such air conditioning units which serve only one Dwelling Unit shall be maintained, replaced or NAP:23654:8 36 repaired by the Dwelling Unit Owner whose Dwelling Unit is serviced by the air conditioning unit; provided, however, that if any repair or alteration is to be made in any Common Elements, the Board shall approve all such work. 18.1.8. Liability for Actions. A Dwelling Unit Owner shall be liable for the expense of any maintenance, repair or replacement of any real or personal property rendered necessary by his act, negligence or carelessness, or by that of his lessee or any member of their families, or their guests, employees or agents (normal wear and tear excepted) but only to the extent that such expense is not met by the proceeds of insurance carried by the Association. Such liability shall include the cost of repairing broken windows. A Dwelling Unit Owner shall also be liable for any personal injuries caused by his negligent acts or those of his lessee or any member of their families, or their guests, employees or agents. Nothing herein contained, however, shall be construed so as to modify any waiver by insurance companies of rights of subrogation. 18.2. By the Association. 18.2.1. Improvements. The Association shall maintain, repair and replace as necessary all of the Common Elements, including the driveways, landscaping and sprinkler systems as well as exterior surfaces of the Buildings. Notwithstanding the foregoing, the Association's maintenance responsibility for driveways shall not include cleaning; rather cleanup of driveways shall be the responsibility of the Dwelling Unit Owner who is entitled to use such driveway. Further, in the event the Association permits a Dwelling Unit Owner to install a covering on the surface of his or her driveway, such as but not limited to brick pavers, then the covering shall remain the property of such Dwelling Unit Owner and the Association shall not be responsible for any damage to such covering in the event of the need to repair the driveway. 18.2.2. Utilities. The Association shall maintain, repair and replace all conduits, ducts, plumbing, wiring and other facilities for the furnishing of any and all utility services and the maintenance of the sanitary sewer service laterals leading to the Buildings but excluding therefrom appliances, wiring, plumbing fixtures and other facilities within a Dwelling Unit. The Association shall also be responsible for water utility charges which may be commonly metered. 18.2.3. Perimeter Wall. The perimeter wall constructed by Developer along Old Dixie Highway and Tequesta Drive shall be maintained and owned by the Association. The landscaping in the rights -of -way or along the Perimeter Wall shall be maintained by the Association as an "Area of Common Responsibility" and the costs and expenses for the maintenance, repair and replacement of the landscaping shall be a Common Expense. 18.2.4. Underground Exfiltration System ("Surface Water Management System"). The Association shall be responsible to operate and maintain the Surface Water Management System as permitted by the South Florida Water Management District ("SFWMD"). A copy of the SFWMD permit is attached hereto as part of Exhibit 11. Copies of this permit and any future SFWMD permit actions will be maintained by the Association's registered agent for the Association's benefit. 18.2.5. The Association shall conduct annual inspections to monitor trench function. This shall include observations after extended or heavy rainfall to identify surface ponding that NAP:23654:8 37 might indicate localized or widespread clogging. Water levels within the inlets should be recorded to check exfiltration capacity. Inlets pumps shall be inspected for sediment buildup and if found to be excessive removed manually or by vacuum pump. 18.2.5.1. The Association shall minimize erosion by implementing a vigorous landscape maintenance regimen that promotes healthy lawn growth. In addition, mowers shall be equipped with catchers to prevent clippings from entering the system. 18.2.5.2. The SFW 1D requires the following additional language to be included in this Declaration: The life expectancy of the system is generally fifteen (15) years. At that point, rehabilitation would be required. A reserve fund equal to the initial construction cost (approximately $50,000.00) would be typical. This work could be coordinated with the expected roadway resurfacing to reduce the total expenditure. 18.2.5. Compliance With Regulations of Public Bodies. The Association shall perform such acts and do such things as shall be lawfully required by any public body having jurisdiction over the same in order to comply with sanitary requirements, fire hazard requirements, zoning requirements, setback requirements, drainage requirements and other similar requirements designed to protect the public. The cost of the foregoing shall be a Common Expense. 110� 18.2.6. Common Expense. All costs and expenses of maintenance described in this Article 18.2 shall be a Common Expense. 18.3. Developer's Warranties. Notwithstanding anything contained in this Article 18 to the contrary, each Dwelling Unit Owner acknowledges and agrees that Developer shall be irreparably harmed if a Dwelling Unit Owner undertakes the repair or replacement of any defective portion of a Dwelling Unit, a Building, the Common Elements or any other real or personal property constituting the Condominium Property or other portions of Tequesta Trace during the time in which Developer is liable under any warranties in connection with the sale of any Dwelling Unit. Accordingly, each Dwelling Unit Owner hereby agrees (i) to promptly, upon such Dwelling Unit Owner's knowledge of the existence of any such defective portion, provide written notice to Developer specifying each such defective portion, upon the receipt of which Developer shall have thirty (30) days ("Repair Period") to commence the repair or replacement of such defective portion and diligently pursue the completion thereof; and (ii) not to repair, replace or otherwise adjust any such defective portion during the Repair Period; provided, however, that if Developer fails to commence the repair or replacement of such defective portion within the Repair Period, such Dwelling Unit Owner may repair or replace same. If any Dwelling Unit Owner fails to comply with the provisions of this Paragraph 18.3, such Dwelling Unit Owner will be deemed to have breached his obligation to mitigate damages and such Dwelling Unit Owner's conduct shall constitute an aggravation of damages. 18.4. Alterations and Improvements. The Association shall have the right to make or cause to be made structural changes and improvements of the Common Elements which are approved by the Board and which do not NAP:23654:8 38 prejudice the rights of any Dwelling Unit Owner or any Institutional Mortgagee. In the event such changes or improvements prejudice the rights of a Dwelling Unit Owner or Institutional Mortgagee, the consent of such Dwelling Unit Owner or Institutional Mortgagee so prejudiced shall be required before such changes or improvements may be made or caused. In any event, approval of the Board shall be submitted for ratification by the affirmative vote of the Dwelling Unit Owners of two-thirds (2/3) of the Dwelling Units if the cost of the same shall be a Common Expense which shall exceed One Thousand Dollars ($1,000) per Dwelling Unit. The cost of such alterations and improvements shall be assessed among the Dwelling Unit Owners in proportion to their share of Common Expenses. 19. ASSESSMENTS FOR COMMON EXPENSES; ESTABLISHMENT AND ENFORCEMENT OF LIENS 19.1. Affirmative Covenant to Pay Common Expenses. In order to: (i) fulfill the covenants contained in this Declaration; (ii) provide for maintenance and preservation of the Common Elements for the recreation, safety, welfare, and benefit of Dwelling Unit Owners, their invitees, guests, family members and lessees, subject to the terms of this Declaration; and (iii) provide for maintenance and preservation of the services and amenities provided for herein, there is hereby imposed upon the Dwelling Units and the Dwelling Unit Owners thereof the affirmative covenant and obligation to pay the Assessments including, but not limited to, the Annual Assessments. Each Dwelling Unit Owner, by acceptance of a deed or other instrument of conveyance for a Dwelling Unit, whether or not it shall be so expressed in any such deed or instrument, shall be so obligated and agrees to pay to the Association all Assessments determined in accordance with the provisions of this Declaration and all of the covenants set forth herein shall run with the Condominium Property and each Dwelling Unit therein. 19.2. Lien. The Annual Assessment and Special Assessments, as determined in accordance with Article 19 hereof, together with Interest thereon and costs of collection thereof, including Legal Fees as hereinafter provided, are, pursuant to the Act, subject to a lien right on behalf of the Association to secure payment thereof and such Assessments are hereby declared to be a charge on each Dwelling Unit and shall be a continuing lien upon the Dwelling Unit against which each such Assessment is made. Each Assessment against a Dwelling Unit together with Interest thereon and costs of collection thereof, including Legal Fees, shall be the personal obligation of the person, persons, entity and/or entities owning the Dwelling Unit so assessed. The Association's statutory lien for Assessments shall be effective only from and after the time of recordation amongst the Public Records of the County of a written acknowledged statement by the Association, as of the date the statement is signed setting forth the description of the condominium parcel, the name of the record owner, the name and address of the association, the amount due to the Association and the due dates. Upon full payment of all sums secured by such lien or liens, the party making payment shall be entitled to a recordable satisfaction of the statement of lien. NAP:23654:8 39 ?"\ 19.2. L Personal Obligation. Each Assessment against a Dwelling Unit, together with Interest thereon and costs of collection thereof, including Legal Fees, shall be the personal obligation of the person, persons, entity and/or entities owning the Dwelling Unit so assessed. 19.2.2. Institutional Mortgagees. An Institutional Mortgagee or other person who obtains title to a Dwelling Unit by foreclosure of a first mortgage, or Institutional Mortgagee who obtains title to a Dwelling Unit by deed in lieu of foreclosure, shall be liable for the unpaid Assessments that became due prior to such acquisition of title to the extent required by Section 718.116, Florida Statutes as it exists at the time of recording this Declaration in the Public Records of the County. Assessments which are not due from such Institutional Mortgagee shall become a Common Expense collectible from all Dwelling Unit Owners pursuant to Paragraph 20.9 hereof. 19.3. Enforcement. In the event that any Dwelling Unit Owner shall fail to pay any Annual Assessment, or installment thereof, or any Special Assessment, or installment thereof, charged to his Dwelling Unit within fifteen (15) days after the same becomes due, then the Association, through its Board, shall have the following remedies: (i) To advance, on behalf of the Dwelling Unit Owner in default, funds to accomplish the needs of the Association; provided that: (a) the amount or amounts of monies so advanced, including Legal Fees and expenses which have been reasonably incurred because of or in connection with such payments, together with Interest thereon, may thereupon be collected by the Association; and (b) such advance by the Association shall not waive the default of the Dwelling Unit Owner in failing to make its payments; (ii) To accelerate the entire amount of any Assessments for the remainder of the budget year in accordance with the provisions of the Act and rules set forth in the Florida Administrative Code promulgated by the Division of Florida Land Sales, Condominiums and Mobile Homes; (iii) To file an action in equity to foreclose its lien at any time after the effective date thereof or an action in the name of the Association in like manner as a foreclosure of a mortgage on real property; and (iv) To file an action at law to collect the amount owing plus Interest and Legal Fees without waiving its lien rights and its right of foreclosure. 20. METHOD OF DETERMINING, ASSESSING AND COLLECTING ASSESSMENTS /0-N, The Assessments as hereinafter set forth and described shall be assessed to and collected from Dwelling Unit Owners on the following basis: 20.1. Determining Annual Assessment. NAP:23654:8 40 20.1.1. Expenses. The total anticipated Common Expenses for each calendar year shall be set forth in a schedule to the Budget of the Association which shall be prepared by the Board as described in the Articles and Bylaws. The total anticipated Common Expenses shall be that sum necessary for the maintenance and operation of the Condominium and such expenses shall be allocated to the Dwelling Units based upon each Dwelling Unit's share of the Common Expenses, which allocated sum, as determined in accordance with any agreement entered into by the Association for monitored alarm service shall be assessed as the "Annual Assessment." The Annual Assessment may be adjusted quarterly in the instance where the Board determines that the estimated Common Expenses are insufficient to meet the actual Common Expenses being incurred, in which event the anticipated Common Expenses for the remaining quarters may be increased accordingly in calculating the Annual Assessment. 20.1.2. Assessment Payment. The Annual Assessment shall be payable monthly in advance on the first day of each month, or at such other time as may be determined by the Board from time to time but in no event less frequently than monthly. The Association may at any time require the Dwelling Unit Owners to maintain a minimum balance on deposit with the Association to cover future installments of Assessments. The amount of such deposit shall not exceed one -quarter (1/4) of the then current Annual Assessment for the Dwelling Unit. 20.2. Special Assessments. In addition to the Annual Assessment, Dwelling Unit Owners shall be obligated to pay such Special Assessments as shall be levied by the Board against their Dwelling Units in accordance with the Bylaws, either as a result of (i) extraordinary items of expense; (ii) the failure or refusal of other Dwelling Unit Owners to pay their Annual Assessment; or (iii) such other reason or basis determined by the Board which is not inconsistent with the terms of the Condominium Documents or the Act. 21. COMMON EXPENSES The following expenses are declared to be Common Expenses of the Condominium which each Dwelling Unit Owner is obligated to pay to the Association as provided in this Declaration and the Condominium Documents. 21.1. Taxes. Any and all taxes levied or assessed at any and all times by any and all taxing authorities including all taxes, charges, assessments and impositions and liens for public improvements, special charges and assessments and water drainage districts, and in general all taxes and tax liens which may be assessed against the Common Elements and against any and all personal property and improvements, which are now or which hereafter may be a portion thereof to be placed thereon, including any interest, penalties and other charges which may accrue thereon shall, as appropriate, be considered Common Expenses. 21.2. Utility Charges. NAP:23654:8 41 All charges levied for utilities providing services for the Common Elements, whether they are supplied by a private or public firm shall, as appropriate, be considered Common Expenses. It is contemplated that this obligation will include all charges for water, gas, electricity, telephone, sewer and any other type of utility or any other type of service charge incurred in connection with the Common Elements. If required by the Village of Tequesta, the municipality in which the Land is located, title to the water and sewer lines located within the Condominium Property will be conveyed to the Association by the date of the "Majority Election Meeting" (as defined in the Articles) and the Association will be responsible for the maintenance thereof. The cost of such maintenance shall be a Common Expense. 21.3. Insurance. The premiums on any policy or policies of insurance required to be maintained under this Declaration and the premiums on any policy or policies the Association determines to maintain on the Condominium Property or specifically related to this Condominium, even if not required to be maintained by the specific terms of this Declaration, shall be Common Expenses. 21.4. Destruction of Buildings or Improvements. Any sums necessary to repair or replace, construct or reconstruct damages caused by the destruction of any building or structure upon the Common Elements by fire, windstorm, flood or other casualty regardless of whether or not the same is covered in whole or in part by insurance, including all amounts required to be deducted from any proceeds received by the Association from an insurer pursuant to a deductible clause in the applicable insurance agreement, shall be Common Expenses. In the event insurance money shall be payable, such insurance money shall be paid to the Association who shall open an account with a banking institution doing business in the County, for the purpose of providing a fund for the repair and reconstruction of the damage. The Association shall pay into such account, either in addition to the insurance proceeds, or in the event there are no insurance proceeds, such sums as may be necessary so that the funds on deposit will equal the costs of repair and reconstruction of the damage or destruction. The sums necessary to pay for the damage or destruction as herein contemplated shall be considered Common Expenses, but shall be raised by the Association under the provisions for Special Assessments as provided in Paragraph 20.2 of this Declaration. The Association agrees that it will levy Special Assessments to provide the finds for the cost of reconstruction or construction within ninety (90) days from the date the destruction takes place and shall go forward with all deliberate speed so that the construction or reconstruction, repair or replacement, shall be completed, if possible, within nine (9) months from the date of damage. 21.5. Maintenance, Repair and Replacements Common Expenses shall include all expenses necessary to keep and maintain, repair and replace any and all buildings, improvements, Surface Water Management System, personal property and furniture, fixtures and equipment of the Association upon the Common Elements, including driveways (except as provided in Paragraph 19.3(1) hereof), landscaping, and lawn and sprinkler service, in a manner consistent with the development of the Condominium and in accordance with the covenants and restrictions contained herein, and with all orders, ordinances, rulings and regulations of any and all federal, state and city governments having jurisdiction NAP:23654:8 42 thereover including the statutes and laws of the State of Florida and the United States. This shall include any expenses attributable to the maintenance and repair and replacement of pumps or other equipment, if any, located upon or servicing the Condominium Property pursuant to agreements between the Association and utility corporations. Any expenses for replacements which would not be in the nature of normal repair and maintenance shall be the subject of a Special Assessment as provided in Paragraph 20.2 of this Declaration. 21.6. Administrative and Operational Expenses. The costs of administration of the Association including, but not limited to, any secretaries, bookkeepers and other employees necessary to carry out the obligations and covenants of the Association as to the Condominium shall be deemed to be Common Expenses. In addition, it is contemplated that the Association may retain a management company or companies or contractors (any of which management companies or contractors may be, but are not required to be, a subsidiary, affiliate or an otherwise related entity of Developer) to assist in the operation of the Condominium Property and carrying out the obligations of the Association hereunder. The fees or costs of this or any other management company or contractors so retained shall be deemed to be part of the Common Expenses hereunder as will fees which may be required to be paid to the Division of Florida Land Sales, Condominiums and Mobile Homes from time to time. e,-*N 21.7. Indemnification. The Association covenants and agrees that it will indemnify and hold harmless Developer and the members of the Board from and against any and all claims, suits, actions, damages, and/or causes of action arising from any personal injury, loss of life, and/or damage to property sustained in or about the Condominium Property or the appurtenances thereto from and against all costs, Legal Fees, expenses and liabilities incurred in and about any such claim, the investigation thereof or the defense of any action or proceeding brought thereon, and from and against any orders, judgments and/or decrees which may be entered therein. Included in the foregoing provisions of indemnification are any expenses that Developer may be compelled to incur in bringing suit for the purpose of compelling the specific enforcement of the provisions, conditions and covenants contained in this Declaration to be kept and performed by the Association. 21.8. Compliance with Laws. The Association shall take such action as it determines necessary or appropriate in order for the Common Elements to be in compliance with all applicable laws, statutes, ordinances and regulations of any governmental authority, whether federal, state or local, including, without limitation, any regulations regarding zoning requirements, setback requirements, drainage requirements, sanitary conditions and fire hazards, and the cost and expense of such action taken by the Association shall be a Common Expense. 21.9. Failure or Refusal of Dwelling Unit Owners to Pay Annual Assessments. NAP:23654:8 43 Funds needed for Common Expenses due to the failure or refusal of Dwelling Unit Owners to pay their Annual Assessments levied shall, themselves, be deemed to be Common Expenses and properly the subject of an Assessment. 21.10. Extraordinary Items. Extraordinary items of expense under this Declaration such as expenses due to casualty losses and other extraordinary circumstances shall be the subject of a Special Assessment. 21.11. Matters of Special Assessments Generally. Amounts needed for capital improvements, as hereinbefore set forth, or for other purposes or reasons as determined by the Board to be the subject of a Special Assessment which are not inconsistent with the terms of any of the Condominium Documents must also be approved by a majority vote of the Dwelling Unit Owners at any meeting of members of the Association having a quorum, except that no such approval need be obtained for a Special Assessment for the replacement or repair of a previously existing improvement on the Condominium Property which was destroyed or damaged, it being recognized that the sums needed for such capital expenditure shall be the subject of a Special Assessment. /'1 21.12. Costs of Reserves. The funds necessary to establish an adequate reserve fund ("Reserves") for periodic maintenance, repair and replacement of the Common Elements and the facilities and improvements thereupon in amounts determined sufficient and appropriate by the Board from time to time shall be a Common Expense. Reserves shall be levied, assessed and/or waived in accordance with the Act. The Reserves shall be deposited in a separate account to provide such funds and reserves. The monies collected by the Association on account of Reserves shall be and shall remain the exclusive property of the Association and no Dwelling Unit Owner shall have any interest, claim or right to such Reserves or any fund composed of same. 21.13. Miscellaneous Expenses. Common Expenses shall include the cost of all items of costs or expense pertaining to or for the benefit of the Association or the Common Elements, or any part thereof, not herein specifically enumerated and which is determined to be an appropriate item of Common Expense by the Board. 22. PROVISIONS RELATING TO PROHIBITION OF FURTHER SUBDIVISION 22.1. Subdivision. Except regarding such rights as may be granted by Developer hereunder, the space within any of the Dwelling Units and Common Elements shall not be further subdivided. No time share units may be created in any portion of the Condominium Property. Any instrument, whether NAP:23654:8 44 a conveyance, mortgage or otherwise, which describes only a portion of the space within any Dwelling Unit shall be deemed to describe the entire Dwelling Unit owned by the person executing such instrument and the interest in the Common Elements appurtenant thereto. 22.2. Incorporation of Section 718.107. Declaration. The provisions of Section 718.107 of the Act are specifically incorporated into this 23. PROVISIONS RELATING TO SEVERABILITY If any provision of this Declaration, any of the other Condominium Documents or the Act is held invalid, the validity of the remainder of this Declaration, the Condominium Documents or the Act shall not be affected. 24. PROVISIONS RELATING TO INTERPRETATION 24.1. Titles. Article, Paragraph and subparagraph titles in this Declaration are intended only for convenience and for ease of reference, and in no way do such titles define, limit or in any way affect this Declaration or the meaning or contents of any material contained herein. 24.2. Gender. Whenever the context so requires, the use of any gender shall be deemed to include all genders, the use of the plural shall include the singular and the singular shall include the plural. 24.3. Member. As used herein, the term "member" means and refers to any person, natural or corporate, who becomes a member of the Association, whether or not that person actually participates in the Association as a member. 24.4. Rule Against Perpetuities. In the event any court should hereafter determine any provisions as originally drafted herein in violation of the rule of property known as the "rule against perpetuities" or any other rule of law because of the duration of the period involved, the period specified in this Declaration shall not thereby become invalid, but instead shall be reduced to the maximum period allowed under such rule of law, and for such purpose, "measuring lives" shall be that of the incorporator of the Association. 25. PROVISIONS CONTAINING REMEDIES FOR VIOLATION NAP:23654:8 45 Each Dwelling Unit Owner shall be governed by and shall comply with the Act and all of the Condominium Documents as such Condominium Documents may be amended and supplemented from time to time. Failure to do so shall entitle the Association, any Dwelling Unit Owner or any Institutional Mortgagee holding a mortgage on any portion of the Condominium Property to sue for either injunctive relief, for damages or for both, and such parties shall have all other rights and remedies which may be available at law or in equity. The failure to enforce promptly any of the provisions of the Condominium Documents shall not bar their subsequent enforcement. In any proceeding arising because of an alleged failure of a Dwelling Unit Owner to comply with the terms of the Condominium Documents, the prevailing party shall be entitled to recover the costs of the proceeding and Legal Fees. The failure of the Board to object to Dwelling Unit Owners' or other parties' failure to comply with covenants or restrictions contained herein or in any of the other Condominium Documents (including the rules and regulations promulgated by the Board) now or hereafter promulgated shall in no event be deemed to be a waiver by the Board or of any other party having an interest therein of its rights to object to same and to seek compliance therewith in accordance with the provisions of the Condominium Documents. 26. PROVISIONS FOR ALTERATIONS OF DWELLING UNITS BY DEVELOPER 26.1. Developer's Reserved Right. 40"*N Developer reserves the right to alter, change or modify the interior design and arrangement of all Dwelling Units and to nonmaterially alter the boundaries between the Dwelling Units as long as Developer owns the Dwelling Units so altered (which alterations in Developer's Dwelling Units are hereinafter referred to as the "Alterations"). Any material alterations require the majority approval of the Voting Interests in the Condominium. 26.2. Alterations Amendment. Any Alterations which will alter the boundaries of existing Common Elements of this Condominium other than interior walls abutting Dwelling Units owned by Developer and the Common Elements therein and not including proposed Common Elements of any Subsequent Phase not then submitted to condominium ownership will first require an amendment to this Declaration in the manner provided in Article 25 hereof In the event the Alterations do not require an amendment in accordance with the above provisions, then, as long as Developer owns the Dwelling Units being affected, an amendment of this Declaration shall be filed by Developer ("Developer's Amendment") in accordance with the provisions of this Paragraph. Such Developer's Amendment need be signed and acknowledged only by Developer and need not be approved by the Association, Dwelling Unit Owners or lienors or mortgagees of the Dwelling Units, whether or not such approvals are elsewhere required for an amendment of this Declaration; provided, however, if the amendment is material, then the consent n of a majority of the Dwelling Unit Owners is also required. 27. PROVISIONS FOR AMENDMENTS TO DECLARATION 27.1. General Procedure. NAP:23654:8 46 eo, Except as to the Amendment described in Paragraph 25.2 hereof, and the matters described in Paragraphs 27.2, 27.3, 27.4, 27.5, 27.6 and 27.7 below, and except when a greater percentage vote is required by this Declaration for a certain action (in which case such greater percentage shall also be required to effect an amendment) (e.g., Paragraph 10.2 herein), this Declaration may be amended at any regular or special meeting of the Dwelling Unit Owners called and held in accordance with the Bylaws, by the affirmative vote of not less than two-thirds (2/3) of the Dwelling Unit Owners; provided that any amendment shall also be approved or ratified by a majority of the Board as a whole. An amendment to the Declaration shall be evidenced by a certificate executed by the Association and recorded in accordance with the Act. A true copy of such amendment shall be sent by certified mail by the Association to Developer and to all Institutional Mortgagees ("Mailing'). The amendment shall become effective upon the recording of the certificate amongst the Public Records, but the certificate shall not be recorded until thirty (30) days after the Mailing, unless such thirty (30)-day period is waived in writing by Developer and all Institutional Mortgagees. 27.2. Material Alteration. Except as otherwise provided in this Declaration, no amendment of the Declaration shall change the configuration or size of any Dwelling Unit in any material fashion, materially alter or modify the appurtenances to such Dwelling Unit, change the proportion or percentage by which the Dwelling Unit Owner shares the Common Expenses and owns the Common Surplus and Common Elements or the Dwelling Unit's voting rights in the Association, unless: (i) the record owner of the unit; (ii) all record owners of liens on the Dwelling Unit join in the execution of the amendment; and (iii) all the record owners of all other Dwelling Units approve the amendment. Any such amendments shall be evidenced by a certificate joined in and executed by all the Dwelling Unit Owners and all Institutional Mortgagees holding mortgages thereon and shall be recorded in the same manner as provided in Paragraph 27.1; provided, however, no amendment to this Declaration shall change the method of determining Annual Assessments unless approved in writing by the Institutional Mortgagees holding mortgages encumbering two-thirds (2/3) of the Dwelling Units encumbered by mortgages held by Institutional Mortgagees. 27.3. Defect, Error or Omission. Whenever it shall appear to the Board that there is a defect, error or omission in the Declaration, or in other documentation required by law to establish this Condominium, the Association, through its Board, shall immediately call for a special meeting of the Dwelling Unit Owners to consider amending the Declaration or other Condominium Documents. Upon the affirmative vote of one-third (1/3) of the Dwelling Unit Owners, with there being more positive votes than negative votes, the Association shall amend the appropriate documents. A true copy of such amendment shall be sent in conformance with the Mailing. The amendment shall become effective upon the recording of the certificate amongst the Public Records, but the certificate shall not be recorded until thirty (30) days after the Mailing, unless such thirty (30) day period is waived in writing by Developer and all Institutional Mortgagees. 27.4. Rights of Developer and Institutional Mortgagees. NAP:23654:8 47 �1. No amendment shall be passed which shall impair or prejudice the rights or priorities of Developer, the Association or any Institutional Mortgagee under this Declaration and the other Condominium Documents without the specific written approval of Developer, the Association or any Institutional Mortgagees affected thereby. In addition, any amendment that would affect the Surface Water Management System, including the conservation areas or water management portions of the Common Elements, must have the prior approval of the South Florida Water Management District. 27.5. Scrivener's Error. The Association may amend this Declaration and any exhibits hereto, in order to correct a scrivener's error or other defect or omission by the affirmative vote of two-thirds (2/3) of the Board without the consent of the Dwelling Unit Owners provided that such amendment does not materially and adversely affect the rights of Dwelling Unit Owners, lienors or mortgagees. This amendment shall be signed by the President of the Association and a copy of the amendment shall be furnished to the Association and all Listed Mortgagees and sent pursuant to the Mailing as soon after recording thereof amongst the Public Records as is practicable. 27.6. Amendments Required by Secondary Mortgage Market Institutions. Notwithstanding anything contained herein to the contrary, Developer may, without the consent of the Dwelling Unit Owners, file any amendment which may be required by an Institutional Mortgagee for the purpose of satisfying its Planned Unit Development criteria or such NAP:23654:8 48 criteria as may be established by such mortgagee's secondary mortgage market purchasers, including, without limitation, the Federal National Mortgage Association and the Federal Home Loan Mortgage Corporation; provided, however, that any such Developer -filed amendments must be in accordance with any applicable rules, regulations and other requirements promulgated by the United States Department of Housing and Urban Development. 27.7. Amendments Regarding Tenants. Any amendment to any of the Condominium Documents granting the Association or the Board the right to approve or in any manner screen tenants of any Dwelling Unit Owner must first be approved by a majority of the Board and three -fourths (3/4) of all Dwelling Units Owners (at a duly called meeting of the Dwelling Unit Owners at which a quorum is present). 27.8. Condominium Documents. The Articles, Bylaws, Master Declaration and other Condominium Documents shall be amended as provided in such documents. Neither this Declaration nor the Condominium Documents may be amended in any manner that would alter or amend the Association's (its successors' or assigns') obligations which inure to the benefit of the Village of Tequesta, or which obligate the Association to perform or abide by the site plan approved by the Village of Tequesta for this project or the Village of Tequesta's Codes and Ordinances. 27.9. Form of Amendment. To the extent required by the Act, as amended from time to time, no provision of this Declaration shall be revised or amended by reference to its title or number only and proposals to amend existing provisions of this Declaration shall contain the full text of the provision to be amended; new words shall be inserted in the text and underlined; and words to be deleted shall be lined through with hyphens; provided, however, if the proposed change is so extensive that this procedure would hinder rather than assist the understanding of the proposed amendment, it is not necessary to use underlining and hyphens as indicated for words added or deleted, but, instead a notation shall be inserted immediately preceding the proposed amendment in substantially the following language: "Substantial Rewording of Declaration. See provision for present text." Notwithstanding anything herein contained to the contrary, however, failure to comply with the above format shall not be deemed a material error or omission in the amendment process and shall not invalidate an otherwise properly promulgated amendment. 28. PROVISIONS SETTING FORTH THE RIGHT OF DEVELOPER TO SELL DWELLING UNITS OWNED BY IT FREE OF RESTRICTIONS SET FORTH IN ARTICLE 16 28.1. Developer's Right to Convey. The provisions, restrictions, terms and conditions of Article 16 hereof shall not apply to Developer as a Dwelling Unit Owner, and in the event and so long as Developer shall own any Dwelling Unit, whether by reacquisition or otherwise, Developer shall have the absolute right to sell, convey, transfer, mortgage or encumber in any way any such Dwelling Unit upon any terms and conditions as it shall deem to be in its own best interests. NAP:23654:8 49 28.2. Developer's Right to Transact Business Developer reserves and shall have the right to enter into and transact on the Condominium Property and other portions of Tequesta Trace any business necessary to consummate the sale, lease or encumbrance of Dwelling Units, including the right to maintain models and a sales and/or leasing office, place signs, employ sales personnel, hold promotional parties, use the Common Elements and show Dwelling Units and including the right to carry on construction activities of all types necessary to construct all improvements in Tequesta Trace pursuant to the plan for development as set forth in Articles 5 and 6 hereof. Any such models, sales and/or leasing office, signs and any other items pertaining to such sales and/or leasing efforts shall not be considered a part of the Common Elements and shall remain the property of Developer. 28.3. Assignment. This Article 28 may not be suspended, superseded or modified in any manner by any amendment to the Declaration, unless such amendment is consented to in writing by Developer. The right of use and transaction of business as set forth in this Article 28 may be assigned in writing by Developer in whole or in part. 29. GENERAL PROVISIONS 29.1. Withdrawal Notice and Other Units. 29.1.1. Rights of Developer. Nothing contained in this Declaration shall be deemed to prohibit Developer from developing any condominium units, other than the Dwelling Units within the Condominium ("Other Units', upon any portion of any Subsequent Phase with respect to which Developer has recorded amongst the Public Records a Withdrawal Notice. 29.1.2. Rights of Dwelling Unit Owners of Other Units to Use Phase 17 and Easements Created for Access. In the event that Developer constructs Other Units, the owners of such Other Units ("Other Unit Owners") and their family members, guests, invitees, and lessees may have as an appurtenance to and a covenant running with such Other Units: (i) the right to use and enjoy any landscaped areas, walks, drives, parking areas, other facilities and improvements, including, but not limited to, the real property and all improvements which comprise Phase 17 (whether or not added to the Condominium Property) in the same manner and with the same privileges as Owners have or may have from time to time; and (ii) a perpetual nonexclusive easement over, across and through Phase 17 for the use and enjoyment thereof and from and to public ways, including dedicated streets. Owners shall have a similar perpetual nonexclusive easement for ingress and egress and access to, over and across the walks and other rights -of -way located upon the portion of the Land covered by a Withdrawal Notice from and to public ways, including dedicated streets and Phase 17 subject to rules and regulations established by the Association governing the use and enjoyment of such easements. The Association shall not establish any rule or regulation with respect to the use and enjoyment of Phase 17, or the easements created by this Paragraph 29.1.2 which do not apply uniformly to the Owners, Other Unit Owners and their respective family members, guests, invitees and lessees. NAP:23654:8 50 29.1.3. Obligations of Other Units. In the event that Developer develops Other Units, the Association shall itemize separately in the annual budgets of the Association, and all adjustments and revisions thereto, the expenses ("Other Unit Expenses") anticipated to be incurred by the Association to administer, operate, maintain, repair, and improve Phase 17, including, but not limited to, the cost and expense of any taxes and insurance which can be determined as applicable solely to Phase 17. The Other Unit Expenses shall be assessed equally among all existing Units and the "Other Units Subject to Assessment" (as hereinafter defined). Each Unit's share of the Other Unit Expenses shall be the product of the multiplication of the Other Unit Expenses multiplied by a fraction, the numerator of which is one (1) and the denominator of which is the "Total Units" (as hereinafter defined). Each Other Unit Subject to Assessment shall also be responsible for its proportionate share of any expense with respect solely to Phase 17, which would be subject to a Special Assessment against Units. "Other Units Subject to Assessment" shall mean the total number of Other Units developed from time to time on any portion of the Land originally intended to be a Subsequent Phase with respect to which the Developer has recorded amongst the Public Records a Withdrawal Notice and to which Developer has granted the right to use the improvements located upon Phase 17, which shall become subject to assessment upon the recording amongst the Public Records of a declaration of condominium submitting such Other Units to the condominium form of ownership. "Total Units" as used herein shall mean the sum of the number of Units within the Condominium and the number of Other Units Subject to Assessment as determined from time to time. In the event of condemnation of any Other Units Subject to Assessment, assessments against such Other Units Subject to Assessment shall be reduced or eliminated on the same basis as Assessments shall be reduced or eliminated with respect to Units. 29.1.4. Liens upon Other Units. There shall be a charge on and continuing lien upon all Other Units Subject to Assessment against which assessment is made as provided in Paragraph 31 which shall be subject to all provisions herein to which Dwelling Units are subject, including, but not limited to, the rights of foreclosure of Other Units Subject to Assessment and such right shall be set forth in the documents establishing the Other Units. 29.1.5. Conflict with Other Provisions. The matters set forth in Paragraphs 29.1.2, 29.1.3 and 29.1.4 shall only become applicable if, as and when Developer develops Other Units, and, in such event, shall control in the event of any conflict between the terms and provisions of such Paragraphs 29.1.2, 29.1.3 and 29.1.4 and the terms and provisions of any other Paragraphs in this Declaration. Amendment of this Article 29 shall require, in addition to any votes or approvals elsewhere required, the written consent of Developer for so long as Developer owns any Dwelling Units or Other Units or any portion of the Land upon which they can be built and by a majority of the Other Unit Owners, if any. 29.1.6 Merger. In the event Developer develops Other Units which are submitted to the condominium form of ownership, the Association may merge the condominiums operated by the Association by calling a special meeting for such purpose, obtaining the afF=ative vote of seventy-five percent (75%) of the owners in each such condominium, obtaining the approval of all record owners of liens, and upon the recording of new or amended Articles of Incorporation, Declarations, and Bylaws. 29.2 Multicondominium NAP:23654:8 5 i In the event there are Other Units, as described in Paragraph 28.1 hereinabove, which are units in a condominium or condominiums operated by the Association ("Multicondominium"), then in addition to the provisions of Paragraph 29.1, the following provisions shall also apply. Liability for the Common Expenses of the Association which are not Common Expenses attributable to a particular condominium or condominiums ("Association Expenses") shall be equal as to each condominium unit operated by the Association. The Assessment for Association Expenses as to each condominium shall be determined by dividing the Association Expenses by the total number of condominium units operated by the Association. As to each condominium, this amount shall be multiplied by the number of units in the condominium, which amount shall be added to the common expenses of the condominium to be levied and assessed against the unit owners thereof in accordance with the declaration of condominium for that condominium. The share of each Other Unit Owner in a Multicondominium in the Common Surplus of the Association shall be determined in the same manner. Developer currently has no plans to have Other Unit Owners in any such Multicondominium share common elements, other than the easement provided in subparagraph 29.1.2 hereinabove, or to add any property to be owned by the Association. ^ In the event Developer creates a Multicondominium, each Multicondominium unit shall have G appurtenant thereto one (1) vote in the Association, which shall be exercised personally by the unit owner. 29.3. Severability. Invalidation of any one of these covenants or restrictions or of any of the terms and conditions herein contained shall in no way affect any other provisions which shall remain in full force and effect. 29.4. Rights of Mortgagees. 29.4.1. Right to Notice. The Association shall make available for inspection upon request, during normal business hours or under reasonable circumstances, the Condominium Documents and the books, records and financial statements of the Association to Dwelling Unit Owners and the holders, insurers or guarantors of any first mortgages encumbering Dwelling Units. In addition, evidence of insurance shall be issued to each Dwelling Unit Owner and mortgagee holding a mortgage encumbering a Dwelling Unit upon written request to the Association. 29.4.2. Rights of Listed Mortgagee. Upon written request to the Association identifying the name and address of the Listed Mortgagee of a mortgage encumbering a Dwelling Unit and the legal description of such Dwelling Unit, the Association shall provide such Listed Mortgagee with timely written notice of the following: NAP:23654:8 52 29.4.2.1. Any condemnation, loss or casualty loss which affects any material portion of the Condominium or any Dwelling Unit encumbered by a first mortgage held, insured or guaranteed by such Listed Mortgagee; 29.4.2.2. Any lapse, cancellation or material modification of any insurance policy or fidelity bond maintained by the Association; 29.4.2.3. Any proposed action which would require the consent of mortgagees holding a mortgage encumbering a Dwelling Unit; and 29.4.2.4. Any failure by a Dwelling Unit Owner owning a Dwelling Unit encumbered by a mortgage held, insured or guaranteed by such Listed Mortgagee to perform his obligations under the Condominium Documents, including, but not limited to, any delinquency in the payment of Annual Assessments or Special Assessments, or any other charge owed to the Association by said Dwelling Unit Owner where such failure or delinquency has continued for a period of sixty (60) days. 29.4.3. Right of Listed Mortgagee to Receive Financial Statement. Any Listed Mortgagee shall, upon written request made to the Association, be entitled free of charge to financial statements from the Association for the prior fiscal year and the same shall be furnished within a n reasonable time following such request. 29.4.4. Right to Cover Cost. Developer (until the Majority Election Meeting) and any Listed Mortgagee shall have the right, but not the obligation, jointly or singularly, and at their sole option, to pay any of the Assessments which are in default and which may or have become a charge against any Dwelling Unit. Further, Developer (until the Majority Election Meeting) and any Listed Mortgagees shall have the right, but not the obligation, jointly or singularly, and at their sole option, to pay insurance premiums or fidelity bond premiums or any New Total Tax on behalf of the Association where, in regard to insurance premiums, the premiums are overdue and where lapses in policies may or have occurred or, in regard to New Total Taxes, where such tax is in default and which may or has become a charge against the Condominium Property. Developer and any Listed Mortgagees paying insurance premiums or any New Total Tax on behalf of the Association as set forth above shall be entitled to immediate reimbursement from the Association plus any costs of collection, including, but not limited to, Legal Fees. 29.5. Developer Approval of Association Actions. Notwithstanding anything in this Declaration to the contrary, while Developer holds Dwelling Units for sale or lease in the ordinary course of business, none of the following actions may be taken without approval in writing by Developer: (i) Assessment of Developer as a Dwelling Unit Owner for capital improvements; and NAP:23654:8 53 (ii) Any action by the Association that would be detrimental to the sale or leasing of Dwelling Units by Developer. The determination as to what actions would be detrimental or what constitutes capital improvements shall be in the sole discretion of Developer; provided, however, that an increase in assessments for Common Expenses without discrimination against Developer shall not be deemed to be detrimental to the sale or lease of Dwelling Units. 29.6. Notices. Any notice or other communication required or permitted to be given or delivered hereunder shall be deemed properly given and delivered upon the mailing thereof by United States mail, postage prepaid, to: (i) any Dwelling Unit Owner, at the address of the person whose name appears as the Owner on the records of the Association at the time of such mailing and, in the absence of any specific address, at the address of the Dwelling Unit owned by such Owner; (ii) the Association, certified mail, return receipt requested, at 8198 Jog Road, Suite 200, Boynton Beach, FL 33437, or such other address as the Association shall hereinafter notify Developer and the Dwelling Unit Owners of in writing; and (iii) Developer, certified mail, return receipt requested, at 8198 Jog Road, Suite 200, Boynton Beach, FL 33437, or such other address or addresses as Developer shall hereafter notify the Association of in writing, any such notice to the Association of a change in Developer's address being deemed notice to the Dwelling Unit Owners. Upon request of a Dwelling Unit Owner the Association shall furnish to such Dwelling Unit Owner the then current address for Developer as reflected by the Association records. 29.7. No Time -Share Estates. Pursuant to the requirements of Section 718.403(2)(0 of the Act, it is hereby specified that no time share estates will be created with respect to Dwelling Units in any Phase. 29.8. Assignment of Developer's Rights Developer shall have the right to assign, in whole or in part, any of its rights granted under this Declaration. 29.9. Security. The Association may, but shall not be obligated to, maintain or support certain activities within the Condominium designed to make the Condominium safer than it otherwise might be. Developer shall not in any way or manner be held liable or responsible for any violation of this Declaration by any person other than Developer. Additionally, NEITHER DEVELOPER NOR THE ASSOCIATION MAKES ANY REPRESENTATIONS WHATSOEVER AS TO THE SECURITY OF THE PREMISES OR THE EFFECTIVENESS OF ANY MONITORING SYSTEM OR SECURITY SERVICE. ALL DWELLING UNIT OWNERS AGREE TO HOLD DEVELOPER AND THE ASSOCIATION HARMLESS FROM ANY LOSS OR CLAIM ARISING FROM THE OCCURRENCE OF ANY CRIME OR OTHER ACT. NEITHER THE ASSOCIATION, NAP:23654:8 54 'e� DEVELOPER, NOR ANY SUCCESSOR DEVELOPER SHALL IN ANY WAY BE CONSIDERED INSURERS OR GUARANTORS OF SECURITY WITHIN THE CONDOMINIUM. NEITHER THE ASSOCIATION, DEVELOPER, NOR ANY SUCCESSOR DEVELOPER SHALL BE HELD LIABLE FOR ANY LOSS OR DAMAGE BY REASON OR FAILURE TO PROVIDE ADEQUATE SECURITY OR INEFFECTIVENESS OF SECURITY MEASURES UNDERTAKEN, IF ANY. ALL DWELLING UNIT OWNERS AND OCCUPANTS OF ANY DWELLING UNIT, AND TENANTS, GUESTS AND INVITEES OF A DWELLING UNIT OWNER, ACKNOWLEDGE THAT THE ASSOCIATION AND ITS BOARD, DEVELOPER, OR ANY SUCCESSOR DEVELOPER DO NOT REPRESENT OR WARRANT THAT ANY FIRE PROTECTION SYSTEM, BURGLAR ALARM SYSTEM OR OTHER SECURITY SYSTEM, IF ANY, DESIGNATED BY OR INSTALLED ACCORDING TO GUIDELINES ESTABLISHED BY DEVELOPER OR THE ASSOCIATION MAY NOT BE COMPROMISED OR CIRCUMVENTED, THAT ANY FIRE PROTECTION OR BURGLAR ALARM SYSTEMS OR OTHER SECURITY SYSTEMS OR OTHER SECURITY SYSTEMS WILL IN ALL CASES PROVIDE THE DETECTION OR PROTECTION FOR WHICH THE SYSTEM IS DESIGNED OR INTENDED. EACH DWELLING UNIT OWNER AND OCCUPANT OF ANY DWELLING UNIT AND EACH TENANT, GUEST AND INVITEE OF A DWELLING UNIT OWNER, ACKNOWLEDGES AND UNDERSTANDS THAT THE ASSOCIATION, ITS BOARD, DEVELOPER, OR ANY SUCCESSOR DEVELOPER ARE NOT INSURERS AND THAT EACH DWELLING UNIT OWNER AND OCCUPANT OF ANY DWELLING UNIT AND EACH TENANT, GUEST AND INVITEE OF A DWELLING UNIT OWNER ASSUMES ALL RISKS FOR LOSS OR DAMAGE TO PERSONS, TO DWELLING UNITS AND TO THE CONTENTS OF DWELLING UNITS AND FURTHER ACKNOWLEDGES THAT THE ASSOCIATION, ITS BOARD, DEVELOPER, NOR ANY SUCCESSOR DEVELOPER HAVE MADE NEITHER REPRESENTATIONS NOR WARRANTIES NOR HAS ANY DWELLING UNIT OWNER OR OCCUPANT OF ANY DWELLING UNIT, OR ANY TENANT, GUEST OR INVITEE OF A DWELLING UNIT OWNER RELIED UPON ANY REPRESENTATIONS OR WARRANTIES, EXPRESSED OR IMPLIED, INCLUDING ANY WARRANTY OF MERCHANTABILITY OR FITNESS FOR ANY PARTICULAR PURPOSE, RELATIVE TO ANY FIRE AND/OR BURGLAR ALARM SYSTEMS OR OTHER SECURITY SYSTEMS RECOMMENDED OR INSTALLED, IF ANY, OR ANY SECURITY MEASURES UNDERTAKEN WITHIN THE CONDOMINIUM, IF ANY. 30. PROVISIONS RELATING TO TERMINATION 30.1. Survival of Certain Obligations and Restrictions. In the event the Condominium is terminated in accordance with and pursuant to the provisions of this Declaration, or if such provisions shall not apply for any reason pursuant to law, Developer declares, and all Dwelling Unit Owners by taking title to a Dwelling Unit covenant and agree, that the documents providing for such termination shall require: (i) that any improvements upon what now comprises or hereafter shall comprise the Condominium Property shall be for residential use only and shall contain residential dwelling units of a number not in excess of the number of Dwelling Units now or hereafter in the Condominium; and (ii) the Dwelling Unit Owners of the Condominium (as tenants in common of the Condominium Property) shall remain obligated to pay their share of the Common Expenses and Operating Expenses, which will continue to be NAP:23654:8 55 allocated to the Condominium Property in the manner provided in the Condominium Documents as fully as though the Condominium were never terminated, and the obligation to make such payments shall be enforceable by all of the remedies provided for in this Declaration, including a lien on the real property previously included in the Condominium, including the portion now designated as Dwelling Units. 30.2. Manner of Termination. This Declaration may be terminated by the affirmative written consent of Dwelling Unit Owners owning eighty percent (80%) of the Dwelling Units then part of the Condominium and the written consent of all Listed Mortgagees then holding mortgages encumbering Dwelling Units in the Condominium; provided, however, that the Board consents to such termination by a vote of three -fourths (3/4) of the entire Board taken at a special meeting called for that purpose shall also be required; and also provided that, for so long as Developer owns a Dwelling Unit or has the right to add a Subsequent Phase to the Condominium, Developer must consent in writing to such termination. 30.3. Ownership of Common Elements. In the event of the termination of the Condominium, the Condominium Property shall be deemed removed from the provisions of the Act and shall be owned in common by the Dwelling Unit Owners, pro rata, in accordance with the share each Dwelling Unit Owner owns in the Common Elements, as provided in this Declaration; provided, however, each Dwelling Unit Owner shall continue to be responsible and liable for his share of the Common Expenses, and any and all lien rights provided for in this Declaration or elsewhere shall continue to run with the real property designated herein as Condominium Property and shall encumber the respective percentage shares of the Dwelling Unit Owners thereof as tenants in common. NAP:23654:8 56 i IN WITNESS WHEREOF, Developer has caused these presents to be duly executed this day of , 200_. 2W WITNESSES: Signature Printed Name Signature Printed Name STATE OF FLORIDA COUNTY OF PALM BEACH CENTEX HOMES, a Nevada general partnership BY: CENTEX REAL ESTATE CORPORATION a Nevada corporation Its: General Partner By: Print Name: Its: Attest: Print Name: Its: (CORPORATE SEAL) The foregoing instrument was acknowledged before me this , 200_, by mm day of the Division President and Assistant Secretary respectively of the Southeast Florida Division of CENTEX REAL ESTATE CORPORATION, a Nevada corporation on behalf of the corporation, as the General Partner of CENTEX HOMES, a Nevada general partnership, who are personally known to me. They affixed thereto the seal of the corporation. My Commission Expires: Notary Public Printed Name of Notary Public NAP:23654:8 57 w .0 0 E=IT A TO DECLARATION OF CONDOM %;V OF TEQUESTA TRACE, A CONDOMINIUM Legal Description of the Land Please refer to Exhibit 8B of the Offering Circular. EXHIBITS B-1 THROUGH B-17 TO DECLARATION OF CONDONENJUM OF TEQUESTA TRACE, A CONDOMRQUM Legal Descriptions and Surveys, Plot Plans and Graphic Descriptions of Improvements for Phases 1 through 17, inclusive Please refer to Exhibit 8B of the Offering Circular. 40 EXHIBIT C TO DECLARATION OF CONDOMINIUM OF TEQUESTA TRACE, A CONDOMINIUM Articles of Incorporation of Teauesta Trace Condominium Association, Inc. Please refer to Exhibit 2 of the Offering Circular. /10'1 EXIIBIT D TO DECLARATION OF CONDOMINIUM OF TEQUESTA TRACE, A CONDOMINIUM Bylaws of jTs ques—ta Trace ondo inlum A sociation Inc Please refer to Exhibit 3 of the Offering Circular.