This is a rider (the "Rider") to the Lease dated the __ day of ---', 20_ (the "Lease"), made between ("Landlord") and _____________ ("Tenant"). The Premises subject to the Lease is that single family residence with an address of within the Deer Crest Project. The following provisions are hereby incorporated into and made a part of the Lease. In the event of any inconsistency between the provisions of this Rider and the Lease, the provisions of this Rider shall prevail. 1. Deer Crest Documents. is subject to the following: Landlord and Tenant each acknowledge that the Lease
(a) Master Declaration of Covenants, Conditions and Restrictions for Deer Crest dated October 31, 1997, and recorded November 3, 1997, as Entry Number 198235 in Book 363 at Page 542 of the Official Records of the Wasatch County Recorder and recorded October 31, 1997, as Entry No. 492181 in Book 1093 at Pages 139-210 of the Official Records of the Summit County Recorder (the "Declaration"), as thereafter supplemented and amended, including without limitation Sections 11.5 and 7.3 attached hereto as Schedule 1; (b) The Articles, Bylaws and Master Rules for Deer Crest and any applicable Neighborhood Declaration (together, the "Deer Crest Documents"). Landlord will provide any or all of the Deer Crest Documents to Tenant upon request; and (c) Relevant county and city ordinances, copies of which are attached hereto as Schedule 2. 2. Compliance with Deer Crest Documents. Tenant acknowledges that he or she has an opportunity to obtain the Deer Crest Documents, and that Tenant has obtained and reviewed such documents as Tenant deems necessary. Landlord and Tenant each agree to comply with all of the Deer Crest Documents regardless of whether such documents have been obtained and reviewed by them. 3. Insurance. Landlord shall maintain the following insurance coverage in the following amounts naming the Association as an additional insured, and, upon request, shall provide to the Association a certificate of insurance or copy of the policy confirming such coverage as reasonably required by the Association: (a) Liability Insurance. (i) Coverages and Limits. Landlord shall carry and maintain coverage LL T
at least as great as that found in a Homeowners Special Policy Form ISO HO 3 or with minimum limits of liability per 'occurrence for Bodily Injury and Property Damage in the amount of $1,000,000 per occurrence and $2,000,000 in the aggregate. Such coverage may be obtained through an umbrella policy if necessary. (ii) Waiver of Subrogation. In the event of a loss, Landlord and its insurers agree to waive any and all rights of recovery against the Association and the Owners. ' (b) Automobile Liability.
(i) Coverage of all owned, leased, rented or borrowed vehicles of Tenant with a limit not less than $1,000,000 per occurrence and $2,000,000 in the aggregate. (c) Such other coverage or endorsements reasonably required by the Association from time to time, and in such amounts as may be reasonably adjusted by the Association from time to time. 4. Indemnification. Tenant and Landlord shall be directly responsible to Owners within the Deer Crest Project and to the Deer Crest Master Association (the "Association") for any damage, including both bodily injury and property damage, caused to them and arising out of or in any way resulting from the .Lease and, Tenant's use of the Premises or the Common Areas. Each of Landlord and Tenant hereby indemnifies and agrees to defend and hold harmless the Association and its officers, members, agents, employees, licensees, invitees and contractors and all other Owners within the Deer Crest Project (the "Indemnified Parties") from and against all actions, claims demands, costs, damages or expense of any kind, including attorneys' fees and costs of defense, arising from (i) any personal or bodily injury or death of any person or the damage to or theft, destruction, loss or loss of use of any property arising from any occurrence on the Premises or the Common Areas by Tenant or Landlord, and (ii) any act, error, omission or negligence of Tenant or Landlord or their invitees, agents, employees, licensees or contractors in, on or about the Premises or the Deer Crest Project except to the extent caused by the gross negligence or willful misconduct of the Indemnified Party. This indemnity will survive the expiration of the term or earlier termination of the Lease for a period of one year. 5. Assumption of Risk. Tenant acknowledges that the Deer Crest Project is situated in a mountain environment and ski area, and that there are inherent risks, hazards and dangers associated with mountain environments and skiing that cannot be eliminated. Such risks include without limitation inclement weather and temperature extremes as well as those risks set forth in Utah Code Ann. § 78B-4-401, et seq., and Tenant agrees that the Association is protected from liability under that statute as if it were included in the definition of a ski area operator under that statute.
TENANT RECOGNIZES AND ACKNOWLEDGES THAT THE SOLE AND EXCLUSIVE PERSON OR ENTITY AGAINST WIllCH TENANT MAY SEEK DAMAGES OR ANY REMEDY UNDER THE LEASE OR UNDER ANY OTHER THEORY OF RECOVERY OF ANY KIND OR NATURE IS LANDLORD AND/OR LANDLORD'S PROPERTY MANAGER. FURTHER, IT IS EXPRESSLY UNDERSTOOD AND AGREED THAT THERE WILL NOT BE ANY LIABILITY WHATSOEVER AGAINST THE ASSOCIATION, AND THAT SUCH EXCULPATION OF LIABILITY SHALL BE ABSOLUTE AND WITHOUT ANY EXCEPTION WHATSOEVER. 6. Notice. Any notice which is to be given to Tenant or Landlord shall be deemed sufficiently given if sent by certified or registered mail, postage prepaid, or hand delivered and addressed as follows:
This Lease Rider is executed as of the day first set forth above.
SCHEDULE 1 TO LEASE RIDER
Section 11.5 Lease of a Lot or Unit. Any agreement for the leasing or rental of a Lot or Unit (hereinafter in this Section referred to as a "lease") shall provide that the terms of such lease shall be subject in all respects to the provisions of this Master Declaration, the Articles, the Bylaws, the Master Rules and Design Guidelines, and any applicable Neighborhood Declaration. Said lease shall further provide that any failure by the lessee thereunder to comply with the terms of the foregoing documents shall be a default under the lease. All leases shall be in writing. Any Owner who shall lease the Owner's Lot or Unit shall be responsible for assuring compliance by such Owner's lessee with this Master Declaration, the Articles, the Bylaws, the Master Rules and Design Guidelines, and applicable Neighborhood Declaration. Failure by an Owner to take legal action, including the institution of proceedings in Unlawful Detainer against his lessee who is in violation within ten (10) days after receipt of written demand so to do from the Board, shall entitle the Master Association, through the Board, to take any and all such action, including the institution of proceedings in Unlawful Detainer or behalf of such Owner against the Owner's lessee. Any expenses incurred by the Master Association, including attorneys' fees and costs of suit, shall be repaid to it by such Owner. Failure by such Owner to make such repayment within ten (10) days after receipt of a written demand therefore shall entitle the Board to levy a Specific Assessment against such Owner. In the event such Specific Assessment is not paid within thirty (30) days of its due date, the Board may resort to all remedies of the Master Association for the collection thereof including those set forth in Article 3.
Section 7.3 No Business Uses. The Residential Lots and Residential Units within the Deer Crest Project shall be used exclusively for residential living purposes, including lodge, hotel, condominium and related facilities for overnight stay, such purposes to be confined to approved residential buildings within the Deer Crest Project. No Residential Lots or Residential Units within the Deer Crest Project shall ever be occupied. or used for any commercial or business purposes provided, however, that nothing in this Section 7.3 shall be deemed to prevent (a) Declarant or its duly authoriz~ agent from using any Residential Lot or Residential Unit owned by Declarant as a sales model, or (b) any Owner or the Owner's duly authorized agent from renting or leasing said Owner's Residential Lot or Residential Unit for residential use or, in the case of a hotel or lodge Units, overnight accommodations, or (c) the use of Commercial Space or a Commercial Lot for commercial purposes. Specifically, the Owner of a Residential Lot may rent or lease the single family residence on such Lot subject to the following additional restrictions and limitations: (a) Rental Term.
(i) A Residential Lot shall not be rented for a period less than five (5) days. (ii) A Residential Lot shall not be rented more than one (1) time in any seven (7) day period. A rental of five (5) days or more, but less than seven (7) days, constitutes a full week for purposes of this
Declaration. (iii) The maximum number of Weekly Rentals (defined below) in anyone calendar year cannot exceed fifteen (15) ("Maximum Weekly Rentals"). . (iv) . Any rental of a Residential Lot for any period less than thirty (30) days shall be referred to as a "Weekly Rental" for purposes of this Declaration. The Maximum Weekly Rentals (see Section 7.3(a)(iii) above) shall be reduced by the number of weeks within each such rental period. For example, a rental of three (3) weeks shall reduce the fifteen (15) Maximum Weekly Rentals for that calendar year to twelve (12). (v) Any rental of a Residential Lot for any period longer than thirty (30) days shall be referred to as a "Monthly Rental" for purposes of this Declaration. (vi) There is no limit on the number of Monthly Rentals permitted; provided that the residence shall be rented or leased to a single tenant for the entire period of such rental, and no sublease or change in occupancy shall be permitted. (b) Compliance.
(i) All rentals of Residential Lots and the occupancy thereunder are subject to compliance with Wasatch County Ordinance Section 11.08 or the Park City Municipal Code, as applicable, and all other county, state and federal laws. All such rentals shall also comply with the Declaration and rules and regulations relating to rentals and. leasing and promulgated by the Board from time to time (the "Rules and Regulations"). The Rules and Regulations shall address all notices, fees and registration requirements for all rental and leasing activity relating to single family residences to be rented or leased, and the registration of all tenants, procedures for tenant ingress and egress from Deer Crest, reporting requirements, clarification of uses within Residential Lots, and tenant compliance with other rules and regulations generally applicable to all Owners. (ii) A rental contract ("Lease") shall be entered into in connection with each rental or leasing of a single family residence. All Leases shall include a rider provided by the Board requiring compliance with the Declaration, including without limitation the provisions of this Section 7.3 and Section 11.5 of the Declaration. Subleasing or assignment of any Lease is strictly prohibited. (iii) All rentals of Single Family Residences shall be overseen Schedule 1 Page 2 LL T
by a Property Management Company or onsite manager. (iv) A single family residence shall be rented or leased only for residentia1living activities, and except as expressly permitted by Section 7.3 (a), shall not be rented or leased for any commercial or business purpose. Prohibited commercial or business purposes include, without limitation, those set forth in Section 7.3(c) below, and any activity requiring a business license other than those activities expressly set forth in Section 7.3(a) above. The rental of a Residential Lot for residential purposes in compliance with this Supplemental and Amended Declaration shall not be deemed to be a commercial or business use prohibited by the Declaration. (v) The Board shall have the right to revoke rental privileges of any Owner of any Residential Lot in the event (a) the Association receives three (3) separate complaints of violation of the Declaration that arise from three (3) separate incidents of claimed violation, and (b) the Board reasonably determines, following investigation, that the tenant's actions in each of the three incidents are in material violation of the Declaration, and (c) that the Owner has not taken sufficient measures to prevent the recurrence of such violation. In the event the Owner disputes any such revocation, such dispute shall be resolved as set forth in Section 7.3(e) below. For purposes of this Section and Schedule 7.3, any violation of the applicable statute or ordinance or the Rules and Regulations shall constitute a violation of the Declaration. (vi) An annual fee will be imposed by the Association on each Residential Lot offered for Weekly Rental to cover anticipated additional costs incurred by the Association in connection with the rental of Residential Lots for Weekly RentaL Such fee shall be a Specific Assessment to be paid at the same time as other Assessments as provided hereunder. The initial annual fee shall be $3,000 per Residential Lot rented, which fee shall be reviewed by the Board at the end of each year, and may be reasonably adjusted by the Board on a yearly basis. Such fee shall be reflected as a separate line item in the Association's profit and loss statement. Additional costs incurred as a result of the operation and rental of the St. Regis Hotel, or its successor, if any, shall not be included in any fee imposed by the Association for rental of Residential Lots. (c) No Business or Commercial Use. Except as expressly authorized herein, a single family residence cannot be rented or leased for any business or commercial use including without limitation the following: (i) clubhouse, (ii) lodge, (iii) meeting house or conference center, (iv) bed and breakfast or inn, (v) hospitality center, (vi) restaurant, (vii) reception center, (viii) timeshare, (ix) residence club, or (x) promotional house. The term "promotional house" means a single family residence rented for the purpose of marketing, advertising, Schedule I Page 3 LL T
hospitality or other promotional use. (d) Fractional Interests. No Residential Lot may be held in any form of co-ownership or in any form of an undivided fractionalized long-term estate as defined in Utah Code Ann. § 61-2-2 (20) by more than four (4) such holders or interest holders unless those interests are held by related family members. For purposes of this provision, a related family member shall include a parent or descendant of the owner (as defmed in the Utah Uniform Probate Code) or any sibling of the foregoing. (e) Dispute Resolution. Any and all disputes arising out of or related to Section 7.3 of the Declaration may be submitted by either party to binding arbitration before a single arbitrator mutually acceptable to the parties; provided that the claimant shall submit the matter to arbitration within fifteen (15) days of the Board determination, and the hearing shall be conducted within ninety (90) days of the Board determination. The arbitration shall be conducted pursuant to the Commercial Rules of the American Arbitration Association. In the absence of agreement concerning the selection of the arbitrator, the arbitration shall be conducted through the American Arbitration Association and the arbitrator shall be selected pursuant to American Arbitration Association protocol. This provision (e) shall be specifically enforceable according to its terms, including but not limited to an action to compel arbitration. The prevailing party in any action to enforce in whole or in part this dispute resolution clause shall be entitled to reimbursement of attorneys' fees and costs incurred in said action.
Schedule 1 Page 4
SCHEDULE 2 TO LEASE RIDER County and City Ordinances
Section 11.08.01 Title
This Chapter shall be known as the "Short-Term Home Rental Ordinance" for Wasatch County.
10/06/2008) Section 11.08.02 Purpose and Findings
The Wasatch County Council recognizes that there is an economic demand for short-term home rentals in Wasatch County due to the beauty of this county and the many recreational opportunities available here. However, the Council also recognizes that short-term home rentals can substantially impair the quality of life of permanent residents who live near a home that is rented short-term. The purpose of this Chapter is to require a business license for short-term hone rentals, and establish a procedure for obtaining and maintaining that license that will minimize the impact on long-term residents. (08-11, Added, 10/06/2008)
Section 11.08.03 Definitions
(1) "Short-term" means (a) a term that commences of the first day ofa calendar month and ends before the last day of the same calendar month or (b) a term that commences on a day other than the first day of a calendar month and ends before the last day ofthe next calendar month. (2) A "local responsible party" means a person who (1) is available by telephone twenty-four hours per day, (2) resides within 30 miles of the residence to be rented, and (3) is able and willing to respond to the residence within one hour of the County's request to remediate a public health, safety, or welfare concern or a neighbor complaint.
(08-11, Added, 10106/2008) Section 11.08.04 License Required
A single family residence may be rented for a short-term only after the rental is authorized by a business license obtained under this Chapter. No other residences, buildings, or structures are authorized for short-term rentals under this Chapter. (08-11, Added, 10/0612008)
Section 11.08.05 Eligibility
Property may be considered for use as a short-term rental only if (1) short term rentals are specifically allowed in any CC&R's which apply to the property, and (2) the property is located in a zone in which short-term rentals are a permitted use or a conditional use or (3) located within a development for which a Development Agreement that has been lawfully approved by the County specifically authorizes short-term rentals. (08-11, Added, 10106/2008)
Section 11.08.06 Application
The Wasatch County Clerk shall prepare a form to be used as an Application to obtain a Short-Term Home Rental business license. The Clerk shall require sufficient information to protect the County's interests in regulating the
business. The Clerk shall further require that the Application be reviewed and approved by the following Wasatch County departments before the Clerk may issue the business license: Building, Clerk, Fire, Health, Manager, Planning and Zoning, and Sheriff. The Clerk should, but is not required to, inform the applicant that each of these departments may charge a separate fee for their services in reviewing the Application. The Application shall, among other appropriate requirements, contain the following: (l) The address, lot or parcel number (if applicable), and Wasatch County Tax Identification Number of the property to be rented; (2) The identity ofthe owner of the property and, if the owner is a corporation or other business entity, appropriate state license numbers; (3) A Utah sales or transient-room tax number; (4) The name, phone numbers, and address of any property management company that will manage the property, and a statement from the County Manager approving the property management company; pursuant to criteria adopted by the County Manager to ensure a company's ability to comply with the provision of this ordinance. (5) The name, phone numbers, and address of a local responsible party, which may be an employee of the property management company identified in subparagragh (4), above; (6) A statement setting forth: (1) the total occupancy approved by the fire district for overnight use, (2) the total occupancy approved by the fire district for day use, (3) the number ofvehic1es approved by planning that may park off-street within the residential property and a pledge to prohibit renter or their guests from parking on a street or road. (08-11, Added, 10106/2008)
Section 11.08.07 Maintenance
The property to be rented under this Chapter shall be maintained in a manner such that it shall not be apparent that it is a rental property, and in a manner that complies with County code as well as any applicable CC&R's or Homeowners' Association rules or guidelines. In addition, the rental property shall be maintained at a level that meets or exceeds that level of maintenance demonstrated by the immediately surrounding neighborhood. Failure to maintain the property as required by this section constitutes a basis to revoke a business license. Minimum maintenance also includes: (1) Snow removal allowing safe access to the residence; (2) Summer yard maintenance, including landscaping, weed control, and irrigation; (3) Structural maintenance to preserve building code compliance and pleasant appearance; (4) Routine upkeep, including deep-cleaning, painting and repair; (5) Trash collection which ensures that trash cans are not left at the curb for any period in excess of24 hours; (6) Housekeeping services as part of a hotel or property management service; (7) Space for off-street parking consistent with the statement set forth in satisfaction of the requirement of section 11.08.05(6). (8) The absence of signs or other indications that the property is available to rent.
(08-11, Amended, 10/07/2008, Prior Text)
Section 11.08.08 Noise, Nuisance, and Occupancy Control (1) The owner of the property and the local responsible party are each individually responsible to regulate the occupancy of the property, the activities conducted on the property, and the noise created by the renters. (2) Noise levels may not exceed 60 decibels during the hours if 6 a.m. to 9 p.m. Noise levels may not exceed 55 decibels during the hours of 9 p.m. to 6 a.m. (3) Occupancy loads may not exceed the limits allowed on the business license. (08-11, Added, 10107/2008) Section 11.08.09 Violations and Revocation of Business License Schedule 1 Page 2 LL T
(1) Any violations of the provisions of this section is a class c misdemeanor. (2) Each day a violation continues or persists is a separate offense. (3) Any property at which three or more violations ofthis section has occurred may have the business license for such property revoked. (4) Any failure to maintain a condition oflicensure constitutes a basis to revoke a business license. Also, illegal conduct by renters while on the property, failure to use off-street parking, excessive noise, or other conduct on the property which constitutes a public or private nuisance is a violation ofthe business license regardless of the owner's knowledge thereof and constitutes a basis to revoke a business license. (08-11, Added, 10/0712008)
Schedule 1 Page 3