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Seacourt Declaration

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					                            DECLl\Rl\TIOH   SUSHITTING    RE
                                                                   on [

                                                                PROPERTY
                                                                           J   0    ~rI
                                                                                            u~f q

                             TO TilE CONDOt-UNIUH     ACT-ANiD CREA'rING
                           AND ESTABLISHING A CONDOMn~IOM         KNOWNAS
                                        GEACOU1T Cm-~DOHIt-1I~MS


              THIS         DECLARATION.                Hade this                24th
                                                                                       I        d..1.Y    of        Auqust,     1984,            by

     Seacrest           Associates,              a Virginia               genera                partnership,                (h€rcinafter

     called         the         "Declarant"),                as      develoPfr                    and         sole      owner        in         fee
     simple         ab so t.ube          of      the        real     propert~                    described             below,         (here-

     inafter           called         the     -propcrtytt),



                                                  IUTNESSETll              THAT:

              ARTICLE            ONE:         CRBA'}'ION       AND ESTAB                   ISllMENT            OF THE CONDOMINIUl-1

     AND RECOROATION

&             This         Decla7:ation            and the           accompamying Bylaws                                and plats               and

     plans         attached            hereto         as     an     integral                part          hereof            and recorded

     simultaneously                    herewith         as     Exhibits                         and      B,        respectively         tall

     such      instruments                  hereinafter             referred                to      by the           collective            term

     ·condominium instruments",                              records            the property                        of a condominium,

     and      through                recordation            hereof          the             eclarant,                 undertaking                to

~    develop           a    real         estate            condominium                pkoject                  in     the      form        of     a

     12-unit           residential               condominium               to       be      known as                 SeaC01.lrt condo-

~    miniums,           hereby          expressly           declares            its        desire             to     submit,     and does

     hereby         submit,             the      property            to         a                             establish€d            by         the
~
     Condominium Act,                    Title        55, Chapter               4.2,            Sections             55-79.39     through
o,
~    55-79.103             of    the        Code of Virginia                    of          950,         as        amended,     and does
i    hereby        create             and establish                a condomi ium form of                                   ownership            for

     the     property            and does          constitute              the        p,operty                 into        a condominium
lS
..p to     be known as                  Seacourt            Condominiums,                       the      particulars            of      which

     are     set     forth           hereinafter.

              These         condominium                 instruments                   shall              be     complementary               and

     shall        be     construed             togeth.er           and      shall               be deemed to                 incorporate

     one another                to    the     extent        that     any r equ Lr'ement; of                           the    Cortdom LnLum

     Act     as     to      the        content         of    one      shall           b          deemed satisfied                     if        the

     deficiency             can be            cured        by reference                    to      anyone             or    moxe of             the
                                                  Ull   l    J   J a nnJ III U
other.        Any    amendment        of any condomi              iurn instrument           shall,    from

the     time    of     the     record<!tion       of        su h      amendment        be    deemed     an

integral       part of the affe~ted              condomimium              instrument,        so long as

such amendment          WaS m~de        in accordance              with    the provisinns        of the

Condominium          hct.

        This Declaration             is recorded        als         for the purpose          of comply-
ing with       the provisions          o~ Section           55-79.39       et ~      of the Code        of

Virginia       of    1950,     as amended,            and    he eafter          provision      shall    be

made    for the       recordation        of    the      indi idual         condominium         units    on

sub~~quent          resales,    mortgages        and        othlr    encumbrances,           as is done

with all other real             estate recordation,                  and each condoniniurn U11it

shall        constitute        for    all     purposes               separate       parcel     of     real

property,       distinct       from all other           condominium           units.



        ARTICLE       TliO - DESCRIPTION         AND        STA\['UTORY     PARTICULARS

        As    used    herein,        the ~property·              mbans    and    includes      the    1and

described        hereinafter,          ymich     is     owner        by    the    Declarant      in    fee

simple,       together       with any improvement                   and structures           erected    or

to be erected           thereon,       to be known               as Seacourt       Condoniniums,         in

accord with          the plats       and plans         attac ed hereto             as Exhibit        Band

recorded       herewith,        drawn    by Gallup           Su vcyors          & Engineers,         Ltd.,

of    Virginia       Beach,     virginia,        hereinaiter              called    the     "plats     and

plans",       and all        easements,       rights,            p,iVileges      and appux cene nc.es

thereto       belonging       an'j all incidents             thireto       or interest        therein.

                A.     Legal    Description           of the Land.

                       ALL THOSE certain lots, Jieces or parcels of
                        land,  with   the    buildings      and   improvements
                       thereon     and     the       a~purtenances      thereto
                       belonging,    situate     in the City of Virginia
                       Beach,    Virginia,     and     ~nownl    numbered    and
                       desiqnated    as   lots      nu~ers     fourteen    (14),
                       sixteen (16l, eighteen (18) and twenty (20) in
                       block number sixty (60)         In Plat number Six 46t
                       of   the Virqinia     Beach      Development    Company,
                       duly recorded     in the cferk's Office           of the
                       Circuit CO"Ln~tof the Ci y of Virginia Beach,
                       Virginia,   in Hap BOOK 5, page 103; the said
                       lots beinc situate         at     he southeast    inter-
                       ,section of Artic        Av~n e and Twenty-fourth
                      .Street and together         fro t two hundred       POOl
                       feet on the south side 0 Twenty-Fourth Street
                       and extend back along            rtic Avenue , tetween
                       parallel lines a distan e of one hundred and
                       forty (1401 feet.


                                         -2-
                                   Ull   l   .J U \J I U V " I. , .



               D.     Description of Duilding and General Description and
Number of Each Unit.
        Th~    Declarant: is       undcrtaking                  o    develop      a    real    esta~e
condominium project on the property whereby twelve condominium
units,       as defined hereinafter, contai ed in thrtlc struc~ures are
to be iHdividuall~roffered for sale a                               sold and conveyed to unit
owners,       and     thereafter    individuall                     owned,      possessed,       sold,
conveyed, encumbered and disposed of                            y unit owners under condo-

minium ownership.
        The units are identified as Units 1 through 4, irclusive, in
Building 318; Units 1 through 4, inel~Sive, in Building 320; and
Units     1 through      ", inclusive, in D~ilding                           322,     respectively.
Each unit shall be identified                 by   a nukber, one through four                   l   and
by a building number as aforesaid.
        c.     Oeser! tion    of     the        Common          Elements         and     Prohibition
Against Partition.                                          I
        The common elements of the prope.ty are all portions of the
condominium other than the units.
        The    limited common elements                 of       the regime            sllall mean     a
portion of the common elements reserved for the excl~sive USe of
the owner        of    the' unit    to which            t c          Iimited      com:non element
appertains.         Limited common elements shall appertain to only one
unit.
     The qeneral common elements are all common elements other
than limited common elenents.                  While u e and enjoy~€nt of limited
common elements         is restricted, each unit owner                              shall have       an
equal undivided ownership interest in                           11 common elements.
                                                            I
     All       shutters, awnings, window b·xes, door steps, and                                     any
other apparatus designed to serve a single unit, but                                          located
outside the boundaries thereot. shall                       I   e deemed a limited common
element       appertaining    solely          to    that            unit   to    Which    they      are
affixed.
     The plats and pla~s attached hereto as Exhibit B shall not
be interpreted to mean ~hat any limite
                                                            I                      as
                                                                    common elerner.t defined
hereinabove is, in fact, a part of any unit rather tllana limited
common element.
                                   -3-
                                                   D/\   c   J   0 ~   ru U II 7. l. I

        The common        elements         shall         remain         undivided             and shall not be

subject      to any       suit       for    partition             u til            and   unless      the    condo-

minium    regime         is terminated.                                 owner, nor any other other
person,      shall bring any Quit or othe~                                  roceeding         for partition or
division      of   the      co-ownership               of     the                        elements     until       and

unless    the condonuu Ium regime is termi ated.

        Nothing      contained         herein          shall bJ construed                      as c limitation

on partition         by the          unit owners             of oie           condominium           unit   in the

regime as to the individual                       ownership                of such condominium              units,

provided      that       upon    partition         of any              such individual              condominium

unit    the same shall' be sold as an entlity and not be partitioned

in kind.


        ARTICLE      THREE       -    DEFINITIONS,                mfflERSBIP,             RIGHTS,     TITLE       AND

IN'I'EREST,DEEDS TO INOI'IlDUAL UNITS, R~STRICTIONS
                                                                       I                       AG}I,lNST SUB-

D1VISION                                                               I
        Except     1:0 the extent            otherwise              provided             by    the condominium
                     .                                                 I
instruments,        the terms defined                  in Section                 55-79.41      of the Code of

Virginia      of 1950 I         a's anended,           shall b          I    deemed       to have the mean-

ings therein         specified         and ascribed                t         them wherever          they appear

in the condominium               instruments             unless             he context          clearly     other-

wise requires.
        aUnit- as used herein,                shall gene~ally                       mean a portion of the

condominium        designed          and     in1:ended for                   individual         ovne.r i.p and
                                                                                                     sh

use,     and specifically,                 shall       mean        a        one     family        ellinq
                                                                                                d•••.            unit

which     is an enclosed             space with              a total enclosed                  area, as shown

on the pla1:s and plans, consisting                              of fd            the bounda~ies       of which

are    designated,         delineated         and describ                    d as    the      inside space         or

areas     contained         within          the        finished               inner        surfac~s        of     the
perimeter      walls       (the vertical                 latera~
                                                   r                        l or   perirnetric boundaries

of     the unit),         floors      (the lower,                hor~zontal              boundaries        of     the

unit),     and     ceilings           [the    upper              hori~ontal              boundaries        of     th~

unit),    of each         separately         de6igned             5el~-contained               owelling         unitt

consisting         specifically              of        the        roo s ,           designc'd,        proposed.

                                            -4-
                                                             un C.   JU,",,\lU, .• ,.-.J°

intend~d        and      rcstrictec               to    be    used         solely           for      independent,
individual        ownership           and single family residential dwelling use,
together        with      an       undivided           percentage             interest.         in     the    common
elements.
         A unit shall not include any chut                               5,    flues, ducts, conduits,
pipes, wires or other utility                            fadlitt.s             or installations                whi"h
serve      more     than       one         unit    or    which        serve          any     portion         of   the
qenerat        co ••~n    elements,           or which         serfe          limited        common elements
appertaining             to        another         unit.           Any! chutes,                  flues,       ducts,
conduits,        pipes,        wires        or other          util~ty           facilities            or     instal-

lations serving only one unit or limi~ed common elements apper-
taining to that unit                       snaIl be deemed to be a part of the unit
served.         Provided       I    howe"er,           that any ronduits.r                   pipes, wires              or
other      utility        facilities              serving          mor         than       one        u~it    or   any
portion of the general                     common elements            L limited
                                                                      rr                        common elements
appertaining             to    another        unit        shall       constitute                general       common

elements.          Subject            to     the       foregoing      1       all      space,         non-bearing
interior partitions                   and other          fixture~             and improvements                within
the boundaries            of a unit shall be deemei                           a part        of that     unit.
         All    parking            areas     shall       constitfte              general          common       area.

Provided, however,                  that the Unit Owners'                       Association,            by appro-
priate     action,        shall have the                right to assign parking spaces to
one or more units                  subject to the            limitation              that       each unit shall

be entitled to an equal number of spacei.
         The    general            common     clements         cons' st          of       the     inprovernents,

exclusive of the units and limited common elements                                                   as described
above, and all of the land subjected to the condomini~rn regime.
         nGeneral        common       area" or "general                    common         elements"          as used

herein     means         common       elements          to which           all        unit ownez s in the
regime are entitled                   to use and enjoy,                   except        for those parking
spaces which may be assigned pursuant                                 t1      this    Article.
         All general common elements shall                               lie maintained              and repaired
by   the   Unit      Qwners'          Association            and     thl      expenses of maintenance
are to be shared equally                     by    all unit ow ers.                    All limited common
                                              -5-
                                                  \.In {.   .J U oJ   r '" ~ •• ,   If




e l eme
      nts      shall     h. maintaiaed                 and        rep.lred           by     the unit       owner to
whose unit ~hp.y are attrib~table                                and t Ie cost of such repairs and

maintenance       shall be borne exclusively                               by such unit owner.

       ·common Expens~s"                  shall m~an              all expenditures                     lawfully made

or   incurred       by    or     on        behalf           of    the      Unit          Owners'        ItIssociation,

toqethcr with all funds la~fully assessed                                           for the creation and/or

maintenance       or reserves              pIJrsuant to th                    provisions           of tile condo-

miniurn instruments,                 "future         common             expenses"           shall       mean     common

expenses       for which assessments                        are not yet due and payahle.

       nUnit     Owners'        llssociation"                    shall      mean          a virginia           nonst.ock

corporation       or an unincorporated                           aSBoc~ation              composed       of the      unlt
owners      which      shall         govern        the           condornlinium and                be    vested       with

certain        rights         and         duties            more         f lly            described        in        this

Declaration       and the condorr.iniumBylaws.

       "Common Profits          ft
                                      shall mean                 all income collected                     or accrued

by   or   on     behalf        of     the     Unit           OWners'           Association,              ot.h r
                                                                                                            e        than

income derived           from assessments                    pursuant           to Article             Four of this
Declaration.

       -Declarant-         shall           mean      tJle DeclalTant on whose                           behalf       this

Declaration         is executed             a~d any succeslors                           of that Declarant            who

come   to stand          in the           same relation                 t.o the condominium                 as their

predeces£oJ: did.

       "Dispose"         or     "dispositionn                     shall        refer         to    any     voluntary

transfer     of a legal or equitable                              inter st in a condominium                       unit,

except as security             for a debt.

       "Board of Directors"                   shall              mean               executive          and adminis-

trative      enti ty herein               designated               as               governing           body    of    the

Unit OWners' Association.

       ·Officer"         shall mean any member                          of the Doard of Di~ectors                      or

officer of the Unit OWners' Association

       The     number     of     votes        in        the       unit       Owners'         Association,             the

undivided        interest            in    the       common             elements            rights        to     common

profits and liability                 for common                 expens ISI al~ocated                   and appurte-

nant to each unit and vested                         in each un"t owner, are equal except

                                             -6-
                                                un   L   J   V oJ t ~ '"        c."
as   otherwise        provided            herEin         t   and      same may              not       be     a1 tered       or

changed      except       by    unanimous             agreement of (111 twelve                             unit      owners

and any purported               transfer,                enCUmbran               or
                                                                                 e     other          disposition           of

the undivided           interest          in the common e ements allocated to a unit
without

undIvided interest
profits
             the unit to which it is appur cnant


             and    liability
                                    in the cornmon elem nts,
                                          for     common expenses
                                                                            1              shall be vOid.

                                                                                           the right
                                                                                       allocated
                                                                                                                to common
                                                                                                             and appur-
                                                                                                                           The




tenant       to each      unit       shall at all                  timel be in proportion                           to     the

number of         votes    in       the     Unit         Owners'           Alsociation            appertaining              to

that unit.
          aUnit    Owner"           shall        mean          one     Of        more        persons            (aperson"
meaning       natural      person,              firm,         corpor1tion,                 partnership,              assoc-
iation,      trust or other                 legal entity capable                           of    holding          title     to

real property, or any combination                                 ther!Ofl who own a condominium
unit      and     whose        ownership             is       reflected               by    a     conveyance              duly
recorded in the Clerkts Office of the Circui~ Court of the                                                                City
of Virginia        Beach, Virqinia.
       An easement             is    hereby          declared              tl    exist          for    the      continued

existence,         maintenance,              repair            and     r placement                of any utility
facilities,          equipment              or        installatiJlns                   constituting                general

common elements            and       loca~ed inside                   of any unit                 or units.               such

facilities         and     any       repla{:ement               thereof           shall          not       be     removed,

tampered with or damaged hy any unit                                   owler.




                                                -7-
      There       shall pass         with    each unit            s an appurtenance                thereto

an exclusive        easement          or    right     to    an        for    thc    use     of    the    air


:::c:sent:~s::i:Ym::e                l::;~l:YS b~t :::Jt:d '; a::c::::~::~:;                            ::::

time to

of the
           time.         The exclusive

          air space enclosed
                                                 easement

                                            or occupied
                                                              J:      right for and to the use
                                                                 ~Y the unit          owner shall be

terminated        automatically            (subject to       bJ    reconstituted)              in any air

space which        is ~acated         fron time to t'fe,                e.g.,       upon destruction

of the building.               Each unit         and all common             areas     shall have         and

be subject        to nonexclusive            easements       fir purposes             of ingress         and

cgress     for utility            services,         and    for     support,         maintenance          and

repair of each unit and conmon element.

      If any part of the common elementI                              encro~chs       upon any unit,

a valid easement            for      such encroachmen,                and maintenance             thereof,

so 10ng as i~ continues,                   shall and doel exist.                    In the event any

portion     of the building             shall be partiallY                  or totally           destroyed

and then rebuilt,           minor       encroachments            if    any parts       of the common

elements      or of any         unit       due    to const+ction              shall       be     permitted

and   valid    easements          for      such encroachments                and the        maintenance

thereof shall exist.

      To the extent            that     ar.y unit or coron                element      encroaches        on

any   other       unit    or      common         element,     whether          by    reason        of   any
deviation     from the plats               ~nd plans        in the construction.                   repair,

renovation,       restoration,          or replacement             of any improvement,               or by

reason    of the ~ettling             or shifting          of any land or improvement,                     a

valld easement        for such encroachment                  Shr"       exist.        The purpose        of

this paragraph           is to protect            the unit        ·wners, except            in cases of

willful     and    intentional          ni.sconduct;        by     them      or     their      dqents    or

employeesr        and not       to    re~ieve       the     Dec arant         or    any     contractor,

subcontractor,        or materialmen              of any liability                which    any of them

may have by reason of any failure                         to adhere         strictly      to the plats

and plans.




                                           -8-
                                          UI\ l J U iJ PIli      If   I. ,

        The Declarant          shall have a transferable                           eas~ment        over and on

the common elements                for the purpose              of     aking         improvements          on the

submit.ted land           pursuant         to    the       provisions              of    the       condominium

instrumonts        and of thc Condominium                        Acrr        a~d     for the purpose             of

doing      all thin9s         reasonablj' necessary                    and      proper        in connection

therewith.

        To the extent           that      daruage is inflicted                       on any part          of    the
condominium         by    any        person      or    person                utilizing         the    easement

created     by     the preceding           paragraph,            t e Declarant                together         with

the     person     or     persons        causing           the    ) me shall             be       join-:ly and

severally        liable for the prompt repair thereof.

        The Unit OWners' Assoc~ation                       shall have the right, which may

be exercised        by its Board of Directors                          or the managing               a~ent,      to

enter each unit from time                    to time during                  reasonable           hour!; as may

be    necessary         for    the     operation           of     t~e        project         or     for    making

repairs      therein          necessary         to    prevent           damage          to    any     units      or
common elements.

        Each unit owner             shall afford to th1eother unit owners and to

the Unit OWners'              Association            and    to any agents                or       empl~yees      of

either     such access          to    his unit as may ~e reasonably neee~sary                                    to

enable them to exercise                  and discharge               t~eir respective               pove rs and

responsibilities.              But     to the extent              trat damage            is inflicted            on

the common         elements        or any unit              to WjiCh           access         is taken,         the

unit owner        causing       the same, or the Unit OWners'                                Association         if

it caused the same, shall be liable                              fO~ the prompt repair there-
of.

        The executive          organ of the Unit OWferSI                           Association,           if anYI

and   if    not,    then       the    Unit      OWners'          As oeiation             itself r and           the

Declarant        during    the period           of Declara             t control,            shall h~ve         the

irrevocable        power      as     attorney-in-fact                 on behalf          of all the unit

owners     and    their successors               in title             '0     qrant    easements           through

the common         elements        and    accept       e.aseme ts benefiting                        the    condo-

miniurn or any· portion              thereof.



                                           -9-
        A uni t owner shall                          have an exclusive                        right        to    his     unit        and

shall        have as            an appurtenance                   to     this      unit           a comroon right               to    an

equal        share,         \.,ith       the     other          unit     ownerb,             in the           common elements

of     ne     p<operty              and in          the    common P<Of~tS'                        This        right     to     common

elements            is     subject          to       limitations             as    fa        u_se and enjoYIo\ent with

regaxd        to         limited         common areas                  and       elements            and with           regard        to

assi~ned            parking          spaces          as mora fully                Jet        forth        in this           Decl ...•
                                                                                                                                   ra-

tion.                                                                              I
        Subsequent                  to     the       establishment                1f         thi~        condomfnLum, each

unit        and the corr~n                  areas          attributablj                 thereto           shall be subject

to     individual              ownership.                 ~ condominiUj unit                        may be individuall~

sold.        conveyed,              mortgaged,             encumbered jnd                    disposed            of    and may be

the     subjoct           of ownership,                   possession             OIl    sale,        and of all               juridic'

acts        inter        vivos       or mortiscausa,                    as if          it    were sole            and entirel~'

independent               of       any other           condominium unit#                       and the           corresponding

individual               titles          and        interest           shall       1e recordable                      pursuant        to

the     laws of the State                        o£ Virginia                relating           to the           recordation           of

deeds.

        A     unit         may not             be     sold,       conveyed,                 encumbered            or    otherwise

disposed            of or          alienated           independently                   or separate               or apart         fron

the     :lnit owners'                interest             in the commonelements                           or vice           versa.

        Hereafter              I    no description                     of    a    condominium unit                       shall        be

deemed vague,                      uncertain,              or     otherwisJ                 insufficient               or      inflrll1

Which sets               forth       the       identifying             n'.lmber        10f    that       unit,        the name of

the condominium, the                           name of the              city      wherein            the        condominium is

situated,            and the deed book and pnge nu~er                                             where the            first     page

of    this      Declaration                is       recorded.               Any    such description                      shall        be

deemed to            include             the     undivided             interest              in     the       common elements

appertaining               to such unit                even if          such interest                     is not defined              or

referred        to therein.

        The foreclosure                        of     any       mortgagel              deed         of     trust,        or     other

liel1       shall         not       be     deemed,          ex     proprio              viqore           to     terminate            the

condominium. .



                                                      -10-
                                                un    C. J U \II   ;11~t'.j\'.'"'" ,-
        No unit may be subdivided                        so as                  make     two or more smaller

units.

        The        boundaries           between         the         units         may         be        relocated        in

accordance with             the    provisions           of    Section            55-'/9.69          of the Code of

Virginia of 1950, as amended.

        AIITICLE         FOUR - CONTRIDUTIONS                 ,.,NO
                                                                           I
                                                                  ASSESSHENTS                      OF    UNIT    OWNERS,
                                                                           I                  -
WARRAN1Y       AGAINST          STRUCTURAL       DEFECTS,             iJNIT      OS-1N~..:..:R=S_·--,Ao;:.S::..;S=-OC~I:.:.A~T:..::I:..::O

        All unit owners                 are bound          to maintain                  and       repair       their own

respective          units       and to contribute                   pro rata             toward          the expenses

of administration                 and of maintenance                    ard repairs                 of    the general

common elements,                and     toward        any     other             expenses           lawfully       agreed

upon     hy        the    Unit        OWners'         ASSOCia:i1n.                    The     expenses           of     and

responsibility              for     maintenance,              relllarement or                       repair       of     the

limited common elements                   shall be borre by the unit owner to whose

unit the limited                cornmon element              appertlins.                    Each        unit    shall    be
                                                                           I.
assessed for cownon expenses                         i n proport~on                to the number of votes

in the Unit Owners'                Association             appertafning                 to such unit.

        If a unit              owner     fails        to mair.tain or                    repair          his    unit     or

limite~ common elements                   appertaining                 thereto           or fails to contri-

bute his pro rata share towards                            such expenses                 as set forth above,

the manager or Board of Djrector$                             of the Unit Owners'                         Association

or, in the proper                 case, an a99rieveo                   uJit owner, may maintain                          an

action        at    law     on     behalf        of     the     \Jni~ Owners I                     Associati.on          to
                                                                    I
recover        sums       due,     for        damages,        and         t
                                                                      n equi ty                     for    in j uncti ve

relief and the Unlt OWners'                       ASsociatio1                   may file a memorandum                    of

lien therefor against the individual unit for unpaid                                                     assessments •

        •ny unit          o~ner.may           make    any i"prOrements                        or alteration.             in

the     interior          of     his     unit        that     do        not       impair            the    structural

integrity of any improvement                          or otherwise                    lessen        the support          of

any portion of the condominium.

        if a unit owner                 acquires        an adjoining                    unit,       then sueh unit

OWner     shall          have     the    right        to     renove             all     or        any    part    of     any

inter'/ening partition                   or    to create             doorways               or other           apertures



                                              -11-
                                           Dn l. .J U u I U U ,   ~ v




therein,        notwithstanding                  the     fact      thIt      such       partition        may      in
whole      or in part be a common                       element,          so lonq as no portion                   of

any bo«ring wall or bearing                          column is jeakened                 or removed         and no
portion        of        any    common         element        otherl       than       that     partition          is
damaged,        destroyed            or endangered.               suer creation              of doorways          or
other      apertures            shall not be deemed                 a1     alteration          of    boundaries
within the rneaaing of section                          55-79.69        of the Code of virginia of
1950, as amended.

        No unit OVIler, inclUding                       the DeCl1rant             or any mortgagee              who
acquires        titlrJ to            the     unit,      shall       be     ex.empt from             maintaining

repairing        his       unit or           limited       common         elemerlts      or     from     contri-
buting toward common expenses                           by WaiVer or nonuse of                       the corr~n
elements,           or     by     abandonment            of       the I_unit belonging                 to      him.
However,        the liabi 1 i ty of any unit owner                              for   future        assessments

for such expenses                shall       cease      upon the termination                   of his owner-

ship of the unit belonging                        to him.

        Express consent and a request by the                                 unit O\'inerof any unit
Shall be dee~d                  to be given            in the caJe of emergency                      repairs      to
his     unit    and       the expenses               thereof        s]lall be that              of     the    unit

owner.         Labor performed                and materials               furnished          for the general
common areas ~nd facilities,                           duly auth rizeo by the Unit OWners'
Association~             the manager,             or Board of Directors,                      shall     also      be
deemed     to be performed                  or    furnished        with      ~~e express             consent of
each    unit    owner          and the expense             thereof shall be deemed                     a common
expense.
        The Unit OWners' Association                            shall      he established              ana come
into being upon the conveyance                             by     the Declarant              of the initial
unit.      Assessnents               shall commence             to accrue as to all units upon
said     conveyance             of    the        initial        unit      and     the    Declarant           shall
henceforth          be responsible                for 100\ of all assessments                         attribut-
able    to the ~nits which are unsold                              an      until      such time as each
unit is conveyed.




                                              -12-
                                      uu c.. •.•..    -




       All      powers and responsibilities                                    with       regard            to maintenance,
                                                                                I
repair,        renovation,               restorationt                   and     rePlacenent                  of        the     condo-

minium shall              Delong          (1)        to     the       Unit     OWners· t>.ssociation                           in    the

case      of   the     general           common elements,                       jlnd       (2)        to     the       individual

unit owner in              tAe case             of        any unit or             limited co~mon                       element        or

any part        thereof.

          The Declarant                warrants                and      quar, htecs         t     against              structural

defects,         each      ()f    the         units             for     two       (2)     years             as     provided           by

Section        55-79.7~          of       the        Code of            Virginia           of         1950,        as        amended.

Nothing         in      this          paragraph                 shall        bJ         construed                to     make         the

Declarant            r eapons LbLe for                    any     items        allf maintenance                       relating        to
the units        or conroon elementG.

       The Unit OWners' Association                                     shal       have the power to employ,

dismiss        and replace               agents             and       emplo lees           to     exercise               and        dis-

charge         the     payers           and          responSibilittes                      of         the        Unit         OWners'

Association,            to make or              cause                      additional
                                                                to be mUI(le                                       improvements

on and as a par~ of the                         common element1'                        and to qrant                  or withhold

approval         of     any action                   by        one    or       mIre       unit         owners            or      other

persons        entitlej          to     the     occupancy               of a y unit               which would change

the    exterior         appearance               of        any unit            ok of        a~y other                  portion        of

the    condominiurr,             or      elect            or    provide         jfor      the         appointment               of    an

architectural             control           committee,                the      11ernbers of                which must have

the    same      quali:ications                  as        officers,            to       qrant         or        withhold           such

approval.

       Nothing          contained               in        the        foregoinq            shall         be       construed            to

prohibit        the    grant,          by the             condominium instruments,                               including           the

Bylaws,        of other          powers         and responsibilities                             to    the        Unit       OWners'

Associ.tion           or the Board of nirector.                                trereOf.
       The commonprofits                        shall           be applied           to     the payment of common

expenses,        and rights in any surplus                                 re:rining shall accrue to the
condominium unlts                 in       proportion                 t.o t1e           number of                votes        in     the

Unit      Owners'         ~ssociation                 appertainin~J                to     each         such           unit.          Any

such surplus           shall          he distributt.cd                  dcco:t:dingll' to the unit                            owner!;,



                                                 -13-
                                                BK r   s b 5 PO0 q 3 J
except to such extent as the cond"minilm                                                 instruments             may require
the     3amo to be added to reserve                                 funds.

         Any common e'''penses associated                                   with        the maintenance,                    repair,

renovation,            restoration                    or     rep1acemeJt                 of     any        limited              cornman
                                                                         I
elements,            shall         be     specially             assessed                against          the     condominium

unit      to which            that        11mited            common ellment                    was assigned                 at        the
time such expenses                   were made or                   incurre1d.
         Any common expense caused or brought                                            about by the misconduct

of      the      owner        of     any         unit         or     his          tenant        or       guest        shall            be

specially           assessed         against.              that     unit.         1
         The      amount of               all        common expense                 5    not      specially                assessed

pursuant         to the        foregoing               two paragrapiisl                   less       the    amount of                 all

common profits,                shall            be assessed                against            the condominium units

in proportion            to the           number of votes                        in the Unit OWners' Associa-

tion      appertaining               to     each           such      unit.            Such     assessment              shall           be

li\ade by the          Unit OWners' Association                                   monthly.            No change                 in    the

number of           votes      in       the      Unit        OWners' Alsociation                         appertaining                  to

any condominlum                unit shall enlarge,                           ditiniSh or otherwise                              affect
any      liabilities               arising             from         a sae semerrts             made prior                  to        such

change.

         The Unit OWners' Association                                 shall           have a lien            on every                unit

fOl" unpaid           assessments                    levied         against           that       \!nit      in     accordance

with       the       pxova srorrs               of     the        Condominium Act                      and        <).).1        l<lwful

provisions            of th, condominium                          instrum.'ts,                if perfected as here-
inafter        provided.                The said             lien     once IPerfected,                     shall       be prior

to all        other     liens        and encumbrances.                       except           real    estate         tax         liens

on that        condorninLumunit                      and sums unpaid on any first                                mortgage              or

first         deed     of      trust             encumbering                 that        unit         and        securing              an

institutional            lender.                The Unit            OWners'I]l.SSociation.                       in order              to

perfect:       the     lien        given         by the           foregoing             provision          and by Sect:ion

55-79.8'         of the Code of Virqini.                              of     19,.'        as ,mended, shall file
before        the     expiration                of      ninety         (90)         days        from the            time             such

assessment            beoene         due and payable                        in    the     Cled~' 5 Office                   of        the



                                                     -14-
ch"cuit.       Court     of      the     cs ty       of     Virgin!,           Deach,      Virqinia,           a memo-

randum, verified               by the         oath        of the principal               officer      of the         Unit
Owners'        hssociatiOlt,             or     such        othor        o~ficer         or officers            as    the
Bylaws may            specify,         which         contains            a deacr Lpt.Ion of              the    ccndo-

minium unit in accordance with the provisions                                            of Section 55-79.47
of the         Code of Virginia                 of        1950, as lamcnded, the names                          of the
record        owners      of      that        condominium                u1it,      the     amount;      of     unpaid

assessments            currently          due        or     past     due,         together        with       the date
when each fell            dUe, and the date of issuance                                 of the memorandum.
            \ihen payment or satisfaction                           is made         of     a debt        secured       by

the lien perfected                by the         foregoing           paJagraPh,            said    lien shall          be

released        in accordance             with the proVis~ons                       of section 55-66.3                 of

the     Code of Virginia                 of     1950, as ameJded.                       For the purposes               of

that        paragraph,        the principal                officer         of the unit OWners'                  Assoc-
iation,         or     such      other         officer         or        officers         as the Bylaws               may
specify,            shall be deemed the duly                         autrorized            a·:Jentof the lie~
creditor.

            Nothing     herein        shall be construed                    to prohibit           actions       at    law
to     recover         sums for          whict, Section                  55-79.84 Ca)        creates           a lien,
maintainable            pursuant         to Section            55-79.53           of the Code of Virginia
of 1950, as amended.

            Any unit      owner or             purchaser           of a condominium                 unit.,      having
executed            a contract         for the             disposition            of the same,               shall     be
entitled upon request to a recordable                                     ,tatement        setting        forth the
amount of unpaid               ,ssessments                currently I levied against                     that unit.
Such a request                shall      be      in       \'lriting, directed               to the        principal

officer of the Unit OWners' Association                                          or to such ot.her officer

as the Byla\,ls may specify.                          !:'ailure to furnish or make available

such a statement               within          five        (5) busi~ess             days    from t.he receipt

of     such request           shall extinguish                     the     ~ien created            hereby and by
Section        55-79.84(,) of the                    Code of virginia                   of 1950, as          amended,
as     to     the     condominium             unit        involved.        1     Such    statement           shall.    be

binding on t~e Unit OWners' Associatio                                         , the     Board of        Directors,


                                               -15-
                                                      un {    J   U .., I U U   't   .1 .,




and every unit                 owner.                Faymen~ of a                  fer       not exceeding                 $]0.00          may

be required              as    a prerequisite                          to     the        issuance             of     such       a state-

ment.

         Upon the             sale            or     conveyance               of      at unit,           all       unpaid         assess-

ments against              a unit              owner for               his     pxo rata               share        in the         ~pense5

of    administration                  and            of JTlaintenance                  rnd         repairs          of    t   no common

elements           and in        any               otl'.erexpenses                   ItfullY             agreed          . oon       by     the

Unit     Owners'          Association                      shall        first         be paid            out       of the         sellers

proceeds           of    tho    sales               price         or by thefurChaser,                           only       if     assumed
by     the     purchaser,                     in     preference               over         any        other        assessments               or

charges        of \~hatever                    natLlre        except           rea           estate          tax     liens       on that

condominium unit                 and sums unpaid                             on afy             first        mortgage           or       first

deed     of     trust         encumbering                    that       condominium                   unit      and      securing            an

institutional                 lender.                 The liability                   rf        the     owner of a unit                      to

the      Unit       OWnersI               Association                   for        prr         rata      expenses               shall        be

limited        to       the amounts l<ihich he is ass1essed from time to time                                                                in

accordance              with    the            Condominium Act                      aid         the     condomfnau.,              instru-

ments.          The Treasurer                         of     the        Unit               ners'        Associat.ion                or      the

Board        of -Directors,                         shall         keep,         in         accordance              with         good        and

generally           accepted                  accounting               procedu           es,      a book~ to be                   audited

at     least        annually                  by      an     independent                     outside           auditor,           with           a

detailed           account       of            the     receipts               and      rxpenditures                  affecting              the

regime and its                 administration                       and speCjlifYing                    the maintenance                     and
repair         expenses          of            the     common elemenrs                          and      any       other        expenses

incurred           by or in behalf                     of t.he regime                      with         the vouchers              Verify-

ing      the       entries           made.                 Both        the
                                                                                     l
                                                                                   bjk          and      vouchers               sh,,11       he

available           for       examination                    by     all       of           he    unit         owners          and     mort-

gagees        of    record       at            convenient               hours          'n working               days that                shall

be set        and announced Ln writing                                  for     ge eral               knowledge by the Unit

Owners' Association.
         ARTICLE          FIVE            -        CD}1PLIANCE            BY       UN'T         OWNERS         Wl'l'H      COVENANTS,

CONDITIONS              AND    RESTRICI'IONS                      OF      INDIVlbuAL               UNI'!'      DEEDS          AND     THESE

CONDOMINIUH             INSTRUMENTS                                                    [

         The       necfarent          ,        each unit               owner,              nd     all        those       entitled            to

occupy        a unitl          shall                comply         ~-lith all              lawful         provisions                of     the

                                                       -16-
                                            ""    ,    J   U   u   I'~   Y rt   ;J ~

condominium          instruments.                lmy        Iack          of       such       compliance          shall      be

qrounrls for         an action       or snit to recover                             sums due , for damages                   or

injunctive       relief,       or fo' any other                          retodY          available         at law or in

equit.y, maintainable                by the           Unit          Ownersl             Association,             or by      its

Do':.rdof Directors                or any rnannging agJnt                              on behalf          of the Assoc-

iation, or in any proper case, by an a19ricved                                                  uilit O\<iner.
        There        is     recorded        simultaneouBlly                            herewith          as    Exhibit        A

hereto     a set of Bylaws                 providing                for         the      self-government               of   the

condominium          by an Association                     of all the unit owners.

        The    "ylaws        shall        provide              whethet             or     not      the     ",it Owners'
Association          shall elect an executive                              organ         or Board of Directors.

If    there     is    to be        such     an        organ,              it may,             among       other      things,

exercise       any of the powers                      and      responsibilities                     assigned           by   the

Condominium          Act     to     the     Unit            OWners         I       Association.                The     Bylaws

shall    also specify             which,         if any, of its powers and :esponsibil-
ities, the Unit OWners                I   Association                    or its Board of Directors                          may

delegate       to a managing              agent.

        The    administration              of         the      regime              shall      be    governed           by   the

Bylaws     approved         and adopted by the Unit Owners'                                        Association.             The

initial       Bylaws may be amended                        from time               to time provided any such
amendments       shall be enacted                     in accordance                     with     the provisions              of
                                                                 I
the    Condominium          Act     and     the        condominium                      instruments.              l\ny such

amendment.       in        order     to    take            effect.              must       be      duly       admitted       to

record    in the Clerk's              Office           of      the CirCUit                 Court      of the City            of

Virginia       Beach,       Vir9ini~1        and areendmeni shall                               set forth         the name

of the condominium,                the name of the city                                in which       the condominium

is    located,       and     the     deed        book          and        pJge         number       where        the      first

page of the Declaration                   is recorded.                         [

        Each    unit       owner     shall        comply                 str"ctly          with      the condominium

instruments          and the Condominium                       Act,       as either of the same may be
lawfully       amended        from        time         to          time,           and     uith       the      covenants,

conditions           and     restrictions                   set          forth           in     the       deed       of     his

individual       unit        and     the         condominium                       instruments.               Failure        to



                                           -17-
                                          lIl\ ,   .I   U V J U U        't   -! ~


comply with any of the same shall be                                                 IroundS for an action                          by the

manager       or    Doard        of Directors                    of           the                Unit    OWners'        Association,
                                                                                     l
or,    1n a proper              case,        an aggrieved                       unit               owner,       on behalf           of the
Unit    Owners'           Association                   to    recover                Iurns due,                 for damages,              and

for    injunctive          relief.

        ARTICLE        SIX       -    RE(;ROUPI}W OR HER ER OF                                            PIJ.IAL      ESTATES WITIl

PRINCIPAL            PROPERT~:                AHENDlIIENT                     OF     I           CONDOMINIUH            JNSTRUt-!ENTS:

TERIUNATJON                                                                              I
        If    there        is        no     unit         owner            other                   than    the     Declarant,              the

Declarant          may unilaterally                      terminate                 tre             condominiun          or amend          the

condomt.nfum          instruments,                      and    any            suet                termination          or     amendment

shall       become     effective               upon           the    recOidation                          thereof       if the           same

has been executed                by the Declarant.                                       I
        If    there        is any unit                   owner            other                   than    the    Declarant,              then

the     condominium              shall             he         terminated                          only     b~' the           unanimious
agreement          of unit owners                  to which                   fourLfifthS                 of the votes              in the

Unit OWners'          Associatjon                  appertain.

        If    there        is    any unit                owner            other                   than    the    Declarant,              then

the condominium              instnlments                     shall be akended                            only bV agreement                 of

unit owners           to which             two-thirds               of th1 votes                          in the Unit Owners'

Association          appertain,               except            in case                          for which        the Condominium

Act    or    this Declaration                      provides                     J
                                                                              different                  met~ods       of     amendment

and unless          this        Declaration                   requires                   a greater              majority           for    the

taking       of certain          action.
        Agreement          of        the required                   nurnl>er of unit                            owaer s      to     termi-
nation       of     the     condonrnd.um or                         to         amendment                  of     the        condominium

instruments,           shall          be      evidenced              by          t~e execut.ion of                          the     termi-

n~tion       agreement           or       amendment,                and         th~               same    shall become              effec-

tive when such agreement                           is duly           recorded
                                                                                             I      with the Clerk s Off~ce
                                                                                                                              •.
of    the Circuit          Court          of the City of Vi1qinia                                        Beach,        Virginia.
        Except        to        the        extent              expressl~                           permitted           or     expressly

required       by other provisions                            of the coJdominium                                instruments          or of




                                                   -18-
                                            on,      Joaruui'          I

the condominium          Actk       no amendment            to tie condominium               instruments

shall change          the boundaries              of any unit,          the undivided            interes~

in    the common       e Leman t s appertaining                    Jheretol      the    liability          for

        expenses
cOJM'l.on                or rights to common profits                        appertaining         thereto,

or    the    number     of    votes        in     the Unit         Owners'       Association         appe r+

tainin9       thereto.

       Upon     recordation           of    an       instrument       terminatinq            this    condo-

minium      all the property               constitutinq            the same       shall be owned            by
the    unit     ownezs       as     tenant.          in     co~       in      proportion        to       their

respective       undivided          interest         in the clommon elements                  immediately

prior to such recordation.                      But so lonl as such tenancy in common
lasts,       each    unit     owner    or       the       heirs,     personal        representatives,

successors,          or assigns       thereof,            shall    have an eKclusive             right of

occupancy       of    that        portion       of    the     property        which     formerly          con-

stituted       his unit-.

       Upon     recordatioll of             an       instrument       terminating            this     condo-

minium,       any rights          the unit        OWners     may have to the assets                  of the

Unit Owners'         Association           shall be          in proportion         to their          respec-

tive undivided          interests          in the common            elements      immediately            prior

to    such     recordation,          except          that    common        profits      shall       be    dis-

tributed       in accordance          with      the provisions             of Section 55-79.82              of

the Code of Virginia               of 1950, as amendld.

       The merger            or    termination             prov+ed         for    in    the     preceding

paragraphs       shall       in ~o way bar the SUbr.eqUent constitution                               of the

property       into    another        condominium            whenever         so desired        and       upon

the observance         of the Condominium                   Act.

       In the event           of termination                of tihA regime,            any unit          owner

may maintain         a partition           suit for the ~ale of the vhole property.

The net proceeds             of the partition                sale, together            ~ith the assets

of    the     unit    OWners'       Association             exoept Lnq        common     profits,          and

insurance       proceeds,          shall        be    distributed          pro    rata to       the       unit

owners       in accordance          with        the undivided          interest         in    the          on
                                                                                                      comr.:

elements       appertaininq         to each unit.



                                           -19-
                                                       .H     J 00    rn II   t   j ~


         ARTICJ.E     SEVEN           -    D1lJ.thGE     on   DESTRUC'l'10N:               INSURANCE

         If any paIt of the common elementb                                           is damaged by casualty,
the      sam.. shall             be       reconstructed               and lrestored                 to     its     original

condition           and        mRterials            of      suhstantio            ly the           same qual:.ty and

type Ahall be used,                       and the        architecturrl                style and appearance                of

the   o~iginal improvements                            shall be adhered                     to.      In the event of
casualty,           <he improvements shall                            be +constructed                      as aforesaid
and      th('re      shall        be        no      terr:1ination         or          the         condominium        regime
unless        the condominium is                     terminated          as provided                above.

         Subject          to    the       provisions           of     this        A1'ticle~          in    the event      of

damage to or              destruction               of all         or an           part       of    the improvements
as a result           of         fire       or other           caS\lalt      JI'      the Board            of    Directors
shall arrange              for    and supervise                 the prompt repair                       and restoration
of    the     property            (including             any       damage~            units        therein, and          any

kitchen or bathroom                        fixtures           initially           installed              therein by the
Declarant,           and        replacementr.               thereof      installed                 by     a unit     owner,

but not including                     any other             furniture,             furnishings,              fixtures or
equipment         installed               therein        by    the unit owners.)                        Notwithstanding
the foregoing, each unit owner shall have the right                                                        to slJpervise
the redecorating of his                          unit.
         In    the    event           of       any casualty             loss,          the        proceeds         from the

hreinafter-describeo                       policies           of    insurlnce               shall        be applied       to

the    cost       of repair               or     reconstruction.                      In     the    event        that   said

proceeds are              not     sufficient             to    pay the cost of                      repair or recon-
struction,           then the unit owners                           shall bear               equally        the cost of
repairing         or reconstruction                      the common elements,                           whether     gelieral

OT. limited~         to        the extent              that    insuran~e proce~ds are deficient,
and all units shall                       be assessed              for thJ deficiency                     in proportion

to the number of votes in the Unit                                    ownels·          Association a(-pertain-
ing to each unit.
         Insurance             proceeds          shall        he applied              first to tho repair and
restoration          of general                  conmon elemente;; and then applied                                 to the
repair        and     restoration                   of      units      and         .limited         common         elements

appertaining          thereto.                 In      the event th               t    insurance           proceeds      are
                                                  -20-
                                          un c:     J   v   <J   I U V "I J     •




insufficient               for     the        repair              and     restrration                     of        the     units         <U''Id


limited        common elements,                          then           f'unda           available              for        repair         and

restoration           of         the     units           and        limi.ted                 oonsnon elements                   shall       be

distributed           pro         rata         to        unit           ow:'!ers whose                   units            and     limited

common elements                   sustained              damage,           in       iroportion                     to the         loss to
each    unit     and appurtenant                            limited        com.jon eler(\ents.                            Unit owners
of units       sustaining                it   loss shall                 bear        their respective                        losses         to

the    extent of any deficiency                                  in in5uranbe                    proceeds.

        In     the    event            that         the          unit     owne+ agree                         to    terminate             th,

condominium regime subsequent                                     to a CaSUjlty                     106s, the proceeds                      of
each      insurance              policy          insuring                 the        jomn10n             elements               shall       be

distributed           to     the        unit        owners              prior        to          the     recordation                of    the
instrume,l'          terminating               the           condominium regime.                               Distribution                 of

insurance        proceeds               shall           be        made to                    ach       unit        owner        (and      his

mortgagee)           in proportion                  to       the percentkge                        interest          in the         co~mon

e.Lenent.s appertaining                       to each unit.                              I



        The    Unit OWners'                   Association                  Shall'                and     is hereby required

to    obtain     and maintain                    casualty                and        If.abilit:y               insurance            on     the

conGominium.           The Unit               Owners·              Association,                     as a co~mon expense,

shall obtain and maintain a master                                         casuklty policy affording                                     fire

and    extended            coverage              in         an      amount                   consonant             with         the      full
replacement           value            of      the           structures                      within           the     condominiun,

witbout        restricting                    the           policy         to                coverage          of         the       comm~n

elenents,        thus        assuring               sufficiert                fun            S    for reconstruction                      and
                                                                                     l
replacement           of     all improvements,                           withOft                 prejudice            to the right
of any unit           owner to insure                        his own unli't at his own expense,                                           fo~

his own benefit.                   In the event of reeD struction                                               and replacement

all proceeds           from the               master              oa sua Lt.y                insurance         policy           shall be
used for reconstruction                          or repair                of ttie                buildings.               Any surplus
of    insurance            proceeds            not          required             fJr             repair        and        replacement

shall be paid              into reserve                     funds        estabJished                    for future repairs.
In addition,          the master                casualty                policy shall provide                              coverage          in
the    kinds and amounts                      commonly              require                   by private             institutional

mortgage       investors               for projects similar in construction,                                                    location
                                                    -21-
                                                  OK 1 3 b 5 PG0 ~ ~ U

and use on a replacement                           cost      basis        in    an amount not                    less      than

one     hundred          percent.        (100%) uf            Lhe        in5ua.-abl;a v a Iuc               (based         upon

replacement           cost).            If     the     condOminLtlJ project                         is     or     shall          be

located        in     an area           identified           by tl'.e          secretary             of    Itousing             and

Urban        Development as                  an     area     havLnq            special          flood          hazards,           a

-blanketM           policy      of      flood        insurance            01     the      condominium project

shall       be maintained               in    the     amonnt of the                  full     replacement               vo Lue

of    all    insurable          structul-es           on the         SUbm~.tted land or the                          maximu:n

limit       of coverage             available             under      the       National            Flood         Insurance

Act of        196R,        as    amended,            whichever            is     less.            The name nf                   the

insured        under        each      required            policy         mUlt     be        stated         in     form and

substance       similar          to the           following:

        ·Unit OWners' Association of Seaco rt
        Condominiums for use and benefit of the
        individual owners".                I
Each such policy                must contain               the    standard           mortgaqee             clause       which

must be endorsed                 to     provide           that     any Rroceeds                   shall        be paid           to

the UnLt Owners' Association                           of seacourJ              Condominiums for                     the use

and be,efit of mortgagees                          as their l.tejest may appear.
        The net.           proceeds           of     insurance           collected              on       account           of     a

casualty       and t.he funds                 collected           by the         Board of Di.rectors                       from

    e
as •• ss:ucnts        against           owners        on      acccunt           of     such          casual ty          shall

constitute           a     construction               fund        wtich          shall          be        disbursed              in

payment of           the     cost       of     xeconsc.ruce ron and repair                            in       the    manner

set    forth    in       this    Article.             The Board of Directors                             subsequent              to

a casualty          loss     shall       submit        in writing              to each mortgagee                     holding

a first      mortgage or deed of                     trust        on any unit,               a proposal              for    the

establishment              of a construction                 fund and for                 the      disbursememt                 of

funds       therefrom.           Such proposal                   shall     provide           for         the     obtaining

of COEt estimates,                 a schedule              of progre~s payments                      and such other
reasor.able         provisions            and safeguards                  a,    the       nature          ann scope             of

the loss may warrant.                        Said proposal           ma, call               for    the      appointment

of an insurance              trustee          or other           iniependent              third          party       who may

be    given     control            of        construction            fun~s           or      other          supervisory

responsibilities.                  Said       prQPosal,            if accepted               in writing              by the

                                               -22-
holder (~)                                                                              or    deeds         of     trust,

shall     be    binding           upon       holders           of    a1         mortgages          and       deeds     of

trust.        Upon     such accopt.ance , the pre'Plosalshall                                     be    implemented

forthwith            by      the        Doard            of         Direjtors,             and         repair         and

reconstruction              shall commence               as soon ar practicable.

        Each    haz ar'd insurance                     policy        must       be written             by    a     hazard

insurance carrier              which         has a current                rating by Best"s                  Insurance

Reports of           n/VI     or better.                 Hazard       jnburance            policies          are     also

acceptable       from an insurance                      carrier       ~h~.Ch has a financial                       rating

by Bestls Insurance                Reports             of Class V, provided                   it.has a general

policy holder's rat.ing of at least A.

        Encroachments             upon or in favor of rnits which may be created

as a result of such reconstruction                                  or repair shall not constitute

a claim or basis              for any proceeding                      0'       action      by the owner              upon
whose     property           such           encroachment              exists#           provided            that     such

construction          is in accordance                   with       th~   [I   receding       paragraphs.

        The    Unit        Owners'          Association              sha 1 have              fidelity        coverage

against        dishonest           acts        on        the     part          of   directors,              managers,

trustees,       employees          or volunteers                    resp~n5ible          for handling               funds

belonging       to or         administered                by     the Lnit              Owners'         Association.

The fitielity bond                or    insurance             must name the Unit Owners'                            Asso-

ciation as        the named             insured          and     shall be written                    in an amount

bufficient       to provide              protection             which          is in no event               less t;an

one and       one-half        times          the insured's                istimated           annual        operating

expenses       and        reserves.               In    connection I            with     such        coverage,         an

appropriate          endorsement              to the          policy           to cover       any      persons        who

serve without compensation                         shall be added if the policy would                                 not

otherwise       cover volunteers.

        The    Unit         Owners'          Association              shlll         have      a    comprehensive

policy of public              liability                insurance       cbVering            all of the common

elements,       commercial             apaoe s , and PUbl+                      ways     in    the      condominium

project.        Such        insurance         policy           shall €ontain             a "severability               of

interest"        endorsement                which         shall       pJeclude             the       insurer         from

denying        the        Claim        of     a        condominiuJ              unit     owner          because        of

                                              -2.3-
negligcnt       acts      of        thc    Unit        Owners   I    Association                 or other           unit

owners.       T h e scope of coverage must
                                                                .  I
                                                                ~n~lude         all other coverage                      in

the kinds and amounts                     required       by private institutional                          mortgage

Lnvesuor s for projects                   similar                uction, location and use.
                                                        in const,1
Liability        coverage            shall        be     for        at       least        $1,000,000.00                per
occurrence,          for personal           injury        and/or property damage.

        All     insurance            proceeds           shall        bb       payable             to     the      named

insured.

        As    500n    as any po1icy               of insurance               has been obtained                    by    or
                                                                         I
on behalf of the Unit OWners'                           Association,            written            notice      uf the
obtainment           thereof        and      of     any    SUbseruent                changes            therein         or

termination          thereof         shall       be promptly Ifurnished each unit owner
by the <officer          required           to send notices of meetings                                of the       Unit

OWners'       Association,            which       notices           shall      be     sent         in accordance

with    the provisions              of     the    last senteJce                of Section 55-79.75                      of

the Code of Virginia                  of     1950, as amended, that is, such notices
shall be sent by United States mail, rJturn receipt requested,                                                          to

all    unit owners             of    record         at the          aa~ress          of        their    respective

units     and     to     such        other        addresses          Js       any         of     them     may       have

designated       to such officer;                   or such notice may be hand delivered

by the said officer,                 provided          he obtains             a receipt of acceptance

of such notice from the unit OWner.                                      I

        ARTICLE       EIGHT     -    RIGHTS       OF .!ORTGAG~ES AND RELATED HAT'l'ERS

        Notwithstanding               any     provision             of this          Declaration               to      the

contrary, the provisions                    contained          in this Article                    shall apply to

the regime.                                                              I

        An adequate            reserve       fund       for replacement                   of common            element

components       shall be established,                         and rill be                funded        by monthly
payments.        There shall be established                              a working             capital     fund for
the initial months              of operation              of the project equal to at least
two months' estimated                 assessment           for each unit.
        The Unit OWners' Association                        Sha1~ give the holders of first
mortgages       prompt         notice        of     any    default             in    a     unit        mortgagor·        s


                                            -24-
                                              BK 'l 3 b 5 PG ,0 .4 ~         3

obliqatio,1S            under         the         condominium             docrments               not        cured           within

thirty (JO) days of default.
         The      holders            of      first         mortgages          shall          have           the        riqht       to

examine the books and records                               of the uni~ OWners' Association                                      and

to require            ('!nnual report              and other          £1na116ia1 data,                      said       :report     to

be furnished             within            ninety         (90) days of the                   end of the                 regime's

fiscal      year.
         Prior         \','ritt.en        approval          of      all     first           mortgagees                 shall      be

required         before         the        unit      Owners'         ASSOCiation can                        abandon condo-

minium status,               partition             or subdivide             anrr unit            or commonelement,

materially             amend the             legal         documents         or       terminate              any existing

managerne~t agreement                        and attempt             Self-janagement.                         In       addition,

unless      all       of the         first         mortgagees         of     Ll, to    condominium units                       have

given      their        prior        written          appzova L, th~ Unit                    OWners' Association

shall      not be entitled                   to:

                  a.       Change the                pro    rata      inter~st           or       obligation              of     any
individual             condominium                 unit       for     the        purpose               of      (1)       levying

assessments             or      charges            or      allocating            distributions                     of        hazard

insurance         proceerls          or condemnation                  awardf'          or     (2) determining                    the
pro      rat(l     share        of        ownership           of     each        condominium unit                         in     the

commonelements;

                  b.       By    act         or      omission,            seeM to           abandon,               partition,

subdivide,         encumber,               sell      or transfer            thl       commonelements.                          (The

granting         of     easement             for        public       utiliJies              or     for       other           public

purposes         consistent               with     the     intended         uJe of the                 commonelements

by the      condominium project                         shall       not be deemed a transfer                              within

the meaning of this                       clause);

                  c.       Use hazard                 insurance                   eeds           for        losses        to     any

condominium property                       (\'1hether t"o units              0        to commonelements)                         for

other      than        the      repair,              replacement           or         reconstruction                    of     such

condominium property,                        except         as      provid       d by statute                     in    case      of

substantial             loss         to      the      units         and/or        COJrlM:m         elements              of      the

condomi~ium project.



                                                   -25-
         Tin1ely wril:.ten notice                          shall        be Qiv1n to each first                                       mortgagee

of      any        condemnat Ion                  or      eminent         domain                    p roceedj nq ,                  or     of     any
substantial damage or of destruction                                               to commonelements or to any
unit.
         Upon            request,            any         first         mortgagee                        shall           be      entitled            to

receive            til'lCly written                notice            of all        meJtingS                   of the Unit OWners·

Association                and each              first      mortgagee              Sh1all be entitled                                to desig-
                                             ,                                                I
nate a representative                             to attend            any suei meeting.

         No unit                owner            shall      be        permitted                     to     lease              his        unit      for
                                                                                              I
transient               or hotel purposes                       nor for a ~eriod of less than thirty
(30)         consecutive               days.             No unit          owner                   may lease               less           than     the

entire         unit.            Any lease                agreement             shall                be required                     to provide
that      the       terms        of the            lease shall                be        SUI       bject        in       all     respects            to

the      provisions               of     the           Declaration             and                the     Dylaws              and that            any
failure            by    the lessee               to     comply with               the              terms          of    such documents

shall be a default                      under            the     lease.         All lea5es                          shall       be required

                                                                                   fl.
to      be    in writing.                        Other      than        the          oreg:o~ng,                      h
                                                                                                                    t ere
                                                                                                                                    .
                                                                                                                                    as     no     re-

striction on the right of any unit                                           Gwner to lease his unit.

         Any right or privilege                                given the "rit Ooners' Association                                                   or
any      individuaL               unit            owner         by     the      condominium                          documents                  shall

inure         to     the        benefit            of     any        institutional                        mortgagee                 holding             a

first        mortgage on any unit                          and any suchlright or privilege                                                  may be

enforced            by a first            mortgagee.

         A reason,b}e method                             for dealing            Virh                any condemnation                        of the
project            shall         be    provided,                 and written                        not.Lee             shall        be         given
immediately                by    the      Unit: OWners' ASSOC!tiOft                                        to       first           rnortgaqees

of      any        such     proceedings,                   and        the pri                     rit~·       of     any        mortgagee'              s
                                                                                    l
first        lien        shall        not be disturbed                    by    any such proceedings.
                                                                                         I
         In        the     event         of        any      condemnat10j                           award,           first           mortgagees

shall         share        pro        rata         in     the     award        based                  upon the                reduction             of
their respective                      security            and shall            belmade whole before                                       distri-

bution         to       ani' other                interested            party                 of        the        condemnation                  pro-

ceeds.          The Unit OWners· Association                                       shall                 have       the        authority            to

retain         legal        counsel               in     the     event         condemnat.Lon                         proceedings                  are

instituted or anticipated                                 which affect rirectlY or indirectly any
                                                         -26-
                                             on t    oJ U U      r.., ~ .'t . , Y

part     of     the        property          subject            to     this         r1gintc.        I,agal     fees           may be

ilssessed        by the          Unit O~ners' hssociation                                   against unit             o~ncrs        if
reasonal>ly           incurred           in connection                  Hith
                                                                                     I
                                                                                    SrUCh     proceedings.

         The Unit            OWners' Association                           shall        have the         right           to    main-

tain      existing            improvements                 regardless                of     any present              or       future

encroachments of the .oo_n                                elements .,.                      anot.her unit.

         No unit            shall       be subject                 to any unreasonable                       restraints            on

alienation             which         would          adversely               affect           the     title         or     market-

ability         of     the       unit,        or     the         dbility            o~ the         mortgage          holder        to
                                                                              I
foreclose            its     first       mortgage              lien     and thereafter                tc sell or lease
the mortgaged unit.

         Appropriate              fidelity           band coverage                    shall        be required            for    any

person         or ent.it.y           handling         funds           of    the lunit. OWners Association,
                                                                                            I



including,            but not limit.ed                   to,      employees of professional                              managers.

Such      fidelit.y          bands'       shall          name the             unit          OWners' Association                    as

obligee,         and be writ.ten                    in     an amount erqual to at                            least        150'% of

the      estimated               annual         operating                  expenses            of     the       condominium

project         including            reserVes.

         Any obligation                   or       duty        of      any uJit              owner or          of        the Unit

o-""ners' Association                    imposed by this                      DeJlaration,              the     condominium

Bylaws or any amendment or                                either           saidl document may be enforced

by any first               mortgagee.

         Any a9reeme~t for                     professional                 management of the condominium

project,         or        any       other      contract                providing             for     services            of     the

developer,            sponsor,           or     builder,              may not exceed three                          (3) years.

Any such agreement                     must provide                   for      termination             by     either           paxt.y

without         cause        and without             payment of a Itermination                               fee     on ninety

(90) days or less                    written         notice.

         Each unit             cwner shall                be        requred          I to    keep and maintain                   his

unit      in     fjOOd repair                 and        first         class          condf.t ion        at        all        times.

t-ioreover,       all       uni t owners shall                        be required              to keep and maintain

all    limited             commonelements,                     for      WhiChlthey             are     charged            by this

Declaration            with       the     duty           of     repairing              and maint.aining;                  in    good

repair     and first             class         condition.

                                                    -27-
                                         BJ(1 3   b5;~lo"'-r'"
        The    Unit        OWners'       Association             shall       have     the        right     to
                                                                  I
maintain       cxicting        it!!pro'!ements          n:.'<]<trcrp.Rf>     of     nny        present     or

future encroachments               of the common          elements upon another unit.

        ARTICLE NINE         - EASEMEN1'S

        The Declarant         expressly          reserves         in easement         for itself           or

its     assignees. pursuant           to Section           55-'29.66 of the Code                  of Vir-

ginia     to facilitate           sales,       and may maJntain              a model unit             and/or

sales office        in an)' unit owned by the ~eclarant                             or its assignee.

Said     easement     sha1l        include      the     reasonable           use of common              areas

for sales and promction of any unit or units.

        The easement         described         above    to fa~ilitate             sales shall cease

and terminate         upon     lhe conveyance              by the Declarant                of     the    last

unit sold in this condominium.                         The DI~clarant reserves                   no perma-

nent easement or other interest                       in the real property subjected                       to

this condominium            regime.

        The submitted land is subject                     to utility          easements which             are

of record       in the Clerk's Office                 of the Circuit Court of the City

of Vi.rginia Beach, Vir<]inia.                   The plat lattached hereto as Exhibit

B does not show the location                     and dimeniions             of such easements              as

it is not       feasible       to do so as contemplated                      by Section           55-79.58

(a) •                                                            I

        ARTICLE     TEN - CONTROL           DY ~HE DECLhRANT

        The Declarant,            or a managing           agelt       or some other             person     or

persons       selected      or to be selected               by       the Declarant,            is author-

ized     to    appoint       and     remove       all     of     the       officers       of     the     Unit

Owners'       Associaticn         and/or       its Board of Direct~rs,                    and    to exer-

eise     powers     and      responsibilities              othlerWise assigned                   by     these

condominium        instruments           and    by    the cordominium               Act    to    the Unit

Owners'       Association,         their       officers,       or the Board of Directors,

for a period          of    two    (2)     years,       or until          units     to which          three-

fourths       of    the      undivided          interests            in     the     common        elements

appertain have been conveyed,                    WhicheveJ           occurs first.

        If entered         into during         the peri~d         of control contemplated                  by

the     foregoing      paragraph,          no    management            contract,          or    any     other

                                         -28-
                                                 8K21b5PGfJr~                1
contract            executed        b~ or on behalf                of the Unit OWners'                   1\ssocia-

t Lon ,        _5    noa r.j ot       01 rp.l'!t:or~, or           the I uni t    ovne rs as            a qroup,

shall be binding after                     such period of control unless then renewed

or    ratified             with     the    consent          of     the    unit    owners          to     which a
majority of the votes in the Unit Owners' Association                                             appertain.
          Since       the    Unit     OWners'          Association          is   not    in ekistence              at

the       time       of     the     creation          of    this       clndominium,          the        Declarant

shall, until there is such an Association                                   with offlcers,               have the

power and the responsibility                               to act      iJ all     instances         where        the

Condominium               Act requires action by the Unit OWners' Association,

its Board of Directors,                     or any officer               or officers or until                    the

period          of        control      contemplated               by     the     forcg,:>ing paragraphs

expires~ whichever                  ~ccurs first.

          The       foregoing        shall       be    strictly          construed       to      protect         the

rights of the unit cwners.

          The Declarant also expressly                           reserVes      an casement for itself
or its assignees                    parauane      to Section             55-79.66       of the           Code of
Virginia to facilitate sales and may maintain                                     a mcdel unit and/or

sales office               in any unit ov.ed hy the Declarant                          or its assignee.

Said easement               shall include              the r.easonable use of                    common        areas

for sales and promotion of any unit or units.

          I"    WITNESS
                      W.EREOF,                   the neclann,.              S•• crest        Associates,           a
Virginia            general partnership,               has caused         this Declaration                and the

Bylaws         attached           hereto    to    be        executed      in     its   name and           on     its

behalf.


                                                       SEACREST ASSOCIATES
                                                       a Virgini~ general partnership

                                                                ~~~                                .4      /
                                                                                                          ..
                                                       BY~                             ~~.
                                                            RObeitF:        BeUCicbi         r
                                                            General         rtner


                                                            J      awrence Browne11'~~
                                                                ~Jerul Partner


                                                       By       Q. ·e£t;1{A ~
                                                            p."CartQr Luck;
                                                            General Partner
                                             -29-
STATE 0 ••VIRGINIA,
CITY OF VIRGINIA       UEl\ClI,       to-wit:

        I, Hary J.     Noore      I   a Notary         Public       in and     for the Ci ty        and

State    aforesaid,      do       hereby         certify         that    Robert     F.    Berlucchi,

general     partner      of       Seacrest          AssociaJes,            a   Virginia      general

partnership,        whose     nome         as    such       is    siqned       to   the    foregoing

Declaration        bearing    date         on    the    24th      day    of August,       198-4,    has

acknowledged    the same before me in the City and state aforesaic
                                           I                       •
        GIVEN under my hand this 29th day of August, 1984.
                                           I                   .


                                                           ~ll."r~f-..
My commission       expires:

May 9, 1986


STATE OF VIRGINIA
CITY OF VIRGINIA       BEl\CII,       to-wit:

        I, mBatf    J. mt(l/U.        ,    a Notary        Public       in and fo= the CiteY and

State aforesaid,        do hereby           certify        that J. Lawrence          Brownell       and

J.   Carter    Luck,        general         partners         of     Seacrest        ~ssociates.        a

Virginia    general     partnership,              whose      names       as such are       signed    to

the foregoing Declaration                  bearing      date on the 24th day of ~ugust,

1984, have aCKnowledqEd               the same before               me in the City and State

aforesaid.

        GIVEN under my h3nd this /~/A                       day of September,            1984.




My Commission expires:




                                          -30-

				
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