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HomeMy WebLinkAboutCondominium Declaration CONDOMINIUM DECLARATION FOR THE CANTAMERE VILLAGE CONDOMINIUMS NOTICE THE FOLLOWING IS A VERY IMPORTANT DOCUMENT WHICH EACH AND EVERY POTENTIAL BUYER AND OWNER OF A CONDOMINIUM WITHIN THE CANTAMERE VILLAGE CONDOMINIUMS SHOULD READ AND UNDERSTAND. THIS DOCUMENT DETAILS THE OBLIGATIONS, RESPONSIBILITIES AND PROHIBITIONS IMPOSED UPON ALL OWNERS AND UNITS LOCATED WITHIN THE CANTAMERE VILLAGE CONDOMINIUMS. THE CANTAMERE VILLAGE CONDOMINIUMS ARE A UNIQUE LIVING ENVIRONMENT AND ARE PART OF THE CANTAMERE VILLAGE PLANNED UNIT DEVELOPMENT. EACH POTENTIAL OWNER IS ADVISED TO MAKE FULL AND COMPLETE INQUIRY ABOUT THE CANTAMERE VILLAGE CONDOMINIUMS BEFORE ACQUIRING A UNIT. EACH OWNER ACKNOWLEDGES AND UNDERSTANDS THAT THE UNITS WILL BE SUBJECT TO ASSESSMENTS LEVIED BY THE CANTAMERE VILLAGE CONDOMINIUMS OWNERS’ ASSOCIATION. THE GRANTOR, AS DEFINED IN THIS CONDOMINIUM DECLARATION, EXPRESSLY DISCLAIMS ANY REPRESENTATIONS, WARRANTIES, STATEMENTS OR INFORMATION NOT SET FORTH HEREIN OR IN ANY WRITTEN DOCUMENT EXECUTED BY THE GRANTOR. POTENTIAL OWNERS ARE ADVISED TO REVIEW THIS CONDOMINIUM DECLARATION PRIOR TO ACQUIRING A UNIT. - i - Table of Contents Page SECTION 1 - RECITALS ............................................................................................................................................. 1 1.1 Property Covered .......................................................................................................................... 1 1.2 Residential Property ...................................................................................................................... 1 1.3 Purpose ......................................................................................................................................... 1 SECTION 2 - DECLARATION .................................................................................................................................... 1 SECTION 3 - ADDITIONAL DEFINITIONS.............................................................................................................. 2 3.1 Articles .......................................................................................................................................... 2 3.2 Assessment ................................................................................................................................... 2 3.3 Association ................................................................................................................................... 2 3.4 Association Rules ......................................................................................................................... 2 3.5 Board ............................................................................................................................................ 2 3.6 Building or Buildings.................................................................................................................... 2 3.7 Bylaws .......................................................................................................................................... 2 3.8 Common Area ............................................................................................................................... 2 3.9 Condominium ............................................................................................................................... 2 3.10 Condominium Act ........................................................................................................................ 2 3.11 Condominium Documents ............................................................................................................ 2 3.12 [Intentionally Omitted]. .............................................................. Error! Bookmark not defined. 3.13 Grantor .......................................................................................................................................... 2 3.14 Limited Assessment ...................................................................................................................... 2 3.15 Limited Common Area ................................................................................................................. 3 3.16 Management Agreement ............................................................................................................... 3 3.17 Management Company ................................................................................................................. 3 3.18 Member ......................................................................................................................................... 3 3.19 Mortgage ....................................................................................................................................... 3 3.20 Mortgagee ..................................................................................................................................... 3 3.21 Owner ........................................................................................................................................... 3 3.22 Parking Garage ........................................................................... Error! Bookmark not defined. 3.23 Patio/Deck Space ........................................................................ Error! Bookmark not defined. 3.24 Plat ................................................................................................................................................ 3 3.25 Project ........................................................................................................................................... 3 3.26 Regular Assessment ...................................................................................................................... 4 3.27 Special Assessment ....................................................................................................................... 4 3.28 [Intentionally Omitted] ............................................................... Error! Bookmark not defined. 3.29 Unit ............................................................................................................................................... 4 SECTION 4 - NATURE AND INCIDENTS OF CONDOMINIUM OWNERSHIP .................................................... 4 4.1 Estates of an Owner of a Condominium ....................................................................................... 4 4.2 Title ............................................................................................................................................... 4 4.3 Inseparability ................................................................................................................................ 4 4.4 Partition of Common Area Not Permitted .................................................................................... 5 4.5 Taxes and Assessments ................................................................................................................. 5 4.6 Owner’s Rights with Respect to Interiors ..................................................................................... 5 SECTION 5 - EASEMENTS......................................................................................................................................... 5 5.1 Easements for Encroachments ...................................................................................................... 5 5.2 Easements of Access for Repair, Maintenance and Emergencies ................................................. 5 5.3 Owner’s Right to Ingress, Egress and Support ............................................................................. 6 5.4 Association’s Right to Use of Common Area ............................................................................... 6 - ii - 5.5 Grantor’s Right Incident to Construction ...................................................................................... 6 5.6 Easements Deemed Created .......................................................................................................... 6 5.7 Emergency Easement .................................................................................................................... 6 5.8 Recorded Easements ..................................................................................................................... 7 SECTION 6 - DESCRIPTION OF A CONDOMINIUM .............................................................................................. 7 SECTION 7 - USE OF CONDOMINIUMS .................................................................................................................. 7 7.1 Obstructions of Common Area ..................................................................................................... 7 7.2 Maintenance of Interiors and Limited Common Area .................................................................. 7 7.3 Prohibition of Damage and Certain Activities .............................................................................. 8 7.4 No Hazardous Activities ............................................................................................................. 10 7.5 Vehicles and Equipment ............................................................................................................. 10 7.6 Parking ........................................................................................................................................ 10 7.7 Animals/Pets ............................................................................................................................... 10 7.8 No Temporary Structures ............................................................................................................ 11 7.9 Energy Devices ........................................................................................................................... 11 7.10 Over the Air Reception Devices ................................................................................................. 11 7.11 Signs ........................................................................................................................................... 11 7.12 Rules and Regulations ................................................................................................................ 11 7.13 Limited Common Areas .............................................................................................................. 11 7.14 Window Treatments .................................................................................................................... 12 7.15 Structural Alterations .................................................................................................................. 12 7.16 Sewer System Restrictions .......................................................................................................... 12 7.17 Parking Garages .......................................................................... Error! Bookmark not defined. 7.18 Deed Restrictions ........................................................................................................................ 12 7.19 Right to Enjoy and Use Units ..................................................................................................... 12 SECTION 8 - THE CANTAMERE VILLAGE CONDOMINIUMS OWNERS’ ASSOCIATION ........................... 12 8.1 Creation ...................................................................................................................................... 12 8.2 Voting Rights in the Association ................................................................................................ 13 8.3 Transfer ....................................................................................................................................... 13 8.4 Powers and Duties of the Association......................................................................................... 13 8.5 Maintenance of Records and Right of Inspection ....................................................................... 17 8.6 Amplification .............................................................................................................................. 17 8.7 Use of Association Powers ......................................................................................................... 18 SECTION 9 - ASSESSMENTS .................................................................................................................................. 18 9.1 Covenant to Pay Assessments ..................................................................................................... 18 9.2 Initial Assessments ..................................................................................................................... 18 9.3 Rate of Assessment ..................................................................................................................... 18 9.4 Assessment Constitutes Lien ...................................................................................................... 18 9.5 Assessment is Personal Obligation ............................................................................................. 18 9.6 Regular Assessments. ................................................................................................................. 18 9.7 Special Assessments ................................................................................................................... 19 9.8 Limited Assessments. ................................................................................................................. 19 9.9 Notice and Assessment Due Date ............................................................................................... 20 9.10 Estoppel Certificate..................................................................................................................... 20 9.11 No Reserves Provided by Grantor .............................................................................................. 20 9.12 Grantor’s Assessment Obligations .............................................................................................. 20 SECTION 10 - ENFORCEMENT OF ASSESSMENTS; LIENS ............................................................................... 20 10.1 Right to Enforce .......................................................................................................................... 20 10.2 Assessment Liens. ....................................................................................................................... 21 10.3 Method of Foreclosure ................................................................................................................ 21 10.4 Required Notice .......................................................................................................................... 22 - iii - 10.5 No Subordination ........................................................................................................................ 22 10.6 Rights of Mortgagees .................................................................................................................. 22 SECTION 11 - RIGHTS TO COMMON AREAS ...................................................................................................... 23 11.1 Use of Common Area ................................................................................................................. 23 11.2 Delegation of Right to Use ......................................................................................................... 23 11.3 Damages ..................................................................................................................................... 23 SECTION 12 - MECHANIC’S LIEN RIGHTS .......................................................................................................... 23 SECTION 13 - INSURANCE ..................................................................................................................................... 24 13.1 Types of Insurance ...................................................................................................................... 24 13.2 Insurance Proceeds ..................................................................................................................... 26 13.3 Owner’s Own Insurance ............................................................................................................. 26 SECTION 14 - CASUALTY, DAMAGE OR DESTRUCTION ................................................................................ 26 14.1 Affects Title ................................................................................................................................ 26 14.2 Association As Agent ................................................................................................................. 26 14.3 General Authority of Association ............................................................................................... 26 14.4 Estimate of Costs ........................................................................................................................ 27 14.5 Repair or Reconstruction ............................................................................................................ 27 14.6 Funds for Reconstruction ............................................................................................................ 27 14.7 Disbursement of Funds for Repair or Reconstruction ................................................................. 27 SECTION 15 - CONDEMNATION............................................................................................................................ 27 15.1 Consequences of Condemnation ................................................................................................. 27 15.2 Proceeds ...................................................................................................................................... 27 15.3 Complete Taking ........................................................................................................................ 28 15.4 Partial Taking .............................................................................................................................. 28 15.5 Reorganization ............................................................................................................................ 28 15.6 Reconstruction and Repair .......................................................................................................... 28 SECTION 16 - MISCELLANEOUS ........................................................................................................................... 29 16.1 Amendment................................................................................................................................. 29 16.2 Mortgage Protection ................................................................................................................... 30 16.3 Enforcement and Non-Waiver. ................................................................................................... 30 16.4 Registration of Mailing Address ................................................................................................. 30 16.5 Interpretation............................................................................................................................... 31 16.6 Owner’s Obligations Continue ................................................................................................... 31 16.7 Exhibits ....................................................................................................................................... 31 16.8 Acknowledgement and Waivers ................................................................................................. 31 16.9 Transfer of Grantor’s Powers...................................................................................................... 32 Exhibits Exhibit A Plat of Cantamere Village Condominiums Exhibit B Articles of Incorporation of The Cantamere Village Condominiums Owners’ Association, Inc. Exhibit C Proportional Interest in Common Area and Voting Allocations CONDOMINIUM DECLARATION FOR THE CANTAMERE VILLAGE CONDOMINIUMS - 1 CONDOMINIUM DECLARATION FOR THE CANTAMERE VILLAGE CONDOMINIUMS THIS CONDOMINIUM DECLARATION FOR THE CANTAMERE VILLAGE CONDOMINIUMS (“Declaration”) is made this ___ day of ______________, 2019, by Cantamere LLC, an Idaho limited liability company (the “Grantor”). All capitalized terms not otherwise defined in the text of this Declaration are defined in Section 3. SECTION 1 - RECITALS 1.1 Property Covered. Grantor is the owner of certain real property located in the city of Rexburg, Madison County, Idaho (the “Property”), which is that certain real property legally described on Exhibit A attached hereto and incorporated herein by this reference, and shown on the Plat of Cantamere Village Condominiums recorded ___________________ in Book _____ of Plats at ________________________, Instrument No. _______________ in the official records of Madison County, Idaho (the “Plat”), a copy of which is attached hereto as Exhibit B, and incorporated herein by this reference. The Property, together with the improvements and structures now or hereafter placed on the Property shall hereinafter be referred to as the “Project.” 1.2 Residential Property. Grantor intends to develop the Property as a residential condominium development in accordance with the Plat, this Declaration, and the existing development approvals obtained from the City of Rexburg. 1.3 Purpose. The purpose of this Declaration is to provide for condominium ownership of the Project pursuant to the Condominium Act, designate Common Area and Limited Common Area, create the Cantamere Village Condominiums Owners’ Association, Inc., and set forth the terms, restrictions, covenants, limitations, easements, conditions and equitable servitudes that shall apply to the Project and this condominium ownership regime (collectively “Restrictions”) that are unique to the Property and the condominium ownership regime. SECTION 2 - DECLARATION Grantor hereby declares that the Property and every parcel or portion thereof shall be held, sold, conveyed, encumbered, hypothecated, used, occupied and improved subject to the provisions of this Declaration, each and all of which are hereby declared to be in furtherance of a general plan for the creation, maintenance and sale of an ownership in fee simple of separate interests in Units and for co-ownership with others, as tenants-in-common, of the Common Area, all pursuant to the Condominium Act. All provisions hereof shall be deemed covenants running with the land or as equitable servitudes, and shall constitute benefits and burdens to the Owners and all persons hereafter acquiring or owning any interest in the Project, however such interests may be obtained. Each Owner of a Condominium, including Grantor, is subject to all of the rights and duties contained within the Condominium Documents. CONDOMINIUM DECLARATION FOR THE CANTAMERE VILLAGE CONDOMINIUMS - 2 SECTION 3 - ADDITIONAL DEFINITIONS 3.1 Articles. Articles mean the Articles of Incorporation of The Cantamere Village Condominiums Owners Association, Inc., as the same may be amended from time to time. A copy of the Articles is attached hereto and incorporated herein as Exhibit C. 3.2 Assessment. Assessment means a share of the funds required for the payment of common expenses, including those expenses attributable to less than all Owners in the case of Limited Assessments, which, from time to time, are assessed against the Owners, and shall include Regular, Special and Limited Assessments, as more particularly described in Section 9 hereof. 3.3 Association. Association means the Cantamere Village Condominiums Owners Association, Inc., an Idaho nonprofit corporation, its successors and assigns. 3.4 Association Rules. Association Rules means the rules and regulations that may be adopted, amended, or repealed from time to time by the Board, as more particularly described in Section 8.4.1.5 of this Declaration. 3.5 Board. Board means the duly elected board of directors of the Association. 3.6 Building or Buildings. Building or Buildings mean the 8 buildings to be constructed on the Property as shown on the Plat. 3.7 Bylaws. Bylaws mean the bylaws of the Association as they exist from time to time. 3.8 Common Area. Common Area means the entire Project, except the Units. 3.9 Condominium. Condominium means a separate interest in a Unit together with an undivided interest in common in the Common Area, expressed as percentages of the entire ownership interest in the Common Area and attached hereto and incorporated herein as Exhibit D. 3.10 Condominium Act. Condominium Act means the “Condominium Property Act” of the State of Idaho, Idaho Code Section 55-1501 et seq. 3.11 Condominium Documents. Condominium Documents means this Declaration, the Articles, the Bylaws, the Plat, Association Rules, any services agreements entered into by the Association, and any and all other related documents and instruments as the same may be amended from time to time. 3.12 Grantor. Grantor means Cantamere LLC, an Idaho limited liability company, or any person or entity to whom the rights under this Declaration are expressly transferred by the Grantor. 3.13 Limited Assessment. Limited Assessment means an assessment levied against an Owner by the Association for costs and expenses incurred by the Association for the CONDOMINIUM DECLARATION FOR THE CANTAMERE VILLAGE CONDOMINIUMS - 3 construction, installation, maintenance, repair and replacement of Common Area, and equipment and facilities located thereon, including any corrective action necessitated due to damage by the acts of any Owner or occupant of a Unit who is occupying a Unit with the consent, either express or implied, of such Owner, as more particularly described in Section 9.8 herein. 3.14 Limited Common Area. Limited Common Area means those portions of the Common Area designated for the exclusive use of an Owner or Owners to the exclusion, limitation or restriction of other Owners. Limited Common Area may be established from time to time by Grantor or the Association on any portion of the Property by describing such area on a recorded plat, by granting or reserving it in a deed or other instrument, or by designating it as such in this Declaration. For purposes of applying this Declaration to the Property, the term Common Area as used in this Declaration shall include Limited Common Area. 3.15 Management Agreement. Management Agreement means any agreement or amendments thereto entered into by the Association, which provides for the management, maintenance and operation of the Project, including, without limitation, the Common Area, by a management individual or entity. 3.16 Management Company. Management Company means the person or entity hired by the Association to manage the Project, as defined in the Management Agreement, and acting as the Management Body, as such power is delegated pursuant to Section 8.4.1.4. 3.17 Member. Member means each person or entity holding a membership in the Association. 3.18 Mortgage. Mortgage means any mortgage, deed of trust or other security instrument by which a Condominium or any part thereof is encumbered. 3.19 Mortgagee. Mortgagee means any person or any successor to the interest of such person named as the mortgagee, trust beneficiary, or creditor under any Mortgage under which the interest of any Owner, or successor to the interest of such Owner, is encumbered. 3.20 Owner. Owner means any person or entity, including Grantor, at any time owning a Condominium. The term “Owner” shall not refer to any Mortgagee, as herein defined, unless such Mortgagee has acquired title pursuant to foreclosure or any proceeding in lieu of foreclosure. 3.21 Plat. Plat means the Plat of Cantamere Village Condominiums recorded _____________________, in Book ___________ of Plats at Page _______________, Instrument No. _____________________, official records of Madison County, Idaho, which is the condominium map as required by the Condominium Act, a copy of which is attached hereto as Exhibit B. 3.22 Project. Project means that certain residential condominium development, consisting of 8 4-plex buildings totaling 32 Units, as shown on the Plat, commonly known as “The Cantamere Village Condominiums” which shall include, but shall not be limited to residential and parking uses, in accordance with the Plat, the Declaration and the existing CONDOMINIUM DECLARATION FOR THE CANTAMERE VILLAGE CONDOMINIUMS - 4 development approvals obtained from the City of Rexburg, all of which is located on the Property. The Project is part of the Cantamere Village Planned Unit Development. 3.23 Regular Assessment. Regular Assessment means an assessment by the Association to provide for the payment of all estimated expenses or reserves growing out of or connected with the Project as a whole, as more particularly described in Section 9.6 herein. 3.24 Special Assessment. Special Assessment means an assessment by the Association for the purpose of defraying, in whole or in part, the costs of any new acquisitions and/or new capital improvement, construction or reconstruction or unexpected or extraordinary repair, maintenance or replacement of the Project or any part thereof, including, without limitation, snow and ice removal, or for any expense incurred or to be incurred as provided in this Declaration, or in the event that the Assessment assessed for any particular year is or will become inadequate to meet the expenses of the Association, such assessment being authorized pursuant to the terms and conditions provided herein, as more particularly described in Section 9.7 herein. 3.25 Unit. Unit means the separate interest in a Condominium as depicted on the Plat and which is bounded by the interior surfaces of the perimeter walls, floors, ceilings, windows, skylights, if any, together will all fixtures and improvements therein contained, including, without limitation, all pipes, wires, conduits and other utility lines and heating, ventilation and air conditioning systems serving the particular Unit and including both the portions of the Building so described and the airspace so encompassed. The following are not part of the Unit: bearing walls, columns, floors, roofs (except for the interior surface thereof, if a perimeter wall, floor or ceiling), foundations, central heating serving more than one Unit, reservoirs, tanks, pumps, and other central services, pipes, ducts, flues, chutes, conduits, wires and other utility installations (other than those specified above), wherever located, except the outlets thereof when located within the Unit. The interior surfaces of a perimeter window, skylight or door means the points at which such surfaces are located when such window, skylight or door is closed. The physical windows, skylights or doors themselves are part of the Limited Common Area as defined herein. There are a total of 32 Units. SECTION 4 - NATURE AND INCIDENTS OF CONDOMINIUM OWNERSHIP 4.1 Estates of an Owner of a Condominium. The Property is hereby divided into Condominiums, each consisting of a separate interest in a Unit and an undivided interest in common in the Common Area. The percentage of ownership interest in the Common Area which is to be allocated to each Condominium as a whole for purposes of Assessments, tax assessment under Section 55-1514 of the Condominium Act and liability as provided by Section 55-1515 of the Condominium Act, is set forth on the attached Exhibit C. 4.2 Title. Title to a Condominium may be held or owned by any individual or entity and in any manner in which title to any other real property may be held or owned in the State of Idaho. 4.3 Inseparability. No part of a Condominium or of the legal rights comprising ownership of a Condominium, including any Limited Common Area associated with the CONDOMINIUM DECLARATION FOR THE CANTAMERE VILLAGE CONDOMINIUMS - 5 Condominium, may be separated from any other part thereof during the period of Condominium ownership prescribed herein, so that each Unit and the undivided interest in the Common Area appurtenant to such Unit shall always be conveyed, devised, encumbered, transferred and otherwise affected only as a complete Condominium. Every gift, devise, bequest, transfer, encumbrance, conveyance, or other disposition of a Condominium or any part thereof shall be presumed to be a gift, devise, bequest, transfer, encumbrance or conveyance, respectively, of the entire Condominium together with all appurtenant rights, created by law or this Declaration. 4.4 Partition of Common Area Not Permitted. The Common Area shall be owned in common by all of the Owners of Units, and no Owner may bring any action for partition thereof. 4.5 Taxes and Assessments. Each Owner shall execute such instrument and take such actions as may reasonably be specified by the Association to obtain separate real property tax assessments of the interest of each Owner in each Condominium. If any taxes or special district or other assessments may, in the opinion of the Association, nevertheless, be a lien on the Property or any part thereof, the Association shall pay the same and assess the same to the responsible Owner or Owners. Each Owner shall pay the taxes and assessments assessed against such Owner’s Condominium, or interest therein, and such Owner’s interest in the Common Area, or any part of any or all of the foregoing. The Association reserves the right to protest any tax valuation or assessment by any government agency and to pay for any costs associated with such protests. Each Owner agrees to reimburse the Association for any costs associated with such protests as related to that Owner’s Unit. 4.6 Owner’s Rights with Respect to Interiors. Each Owner shall have the exclusive right to maintain, finish, refinish and decorate the interior surfaces of the walls, ceilings, floors, windows and doors forming and within the interior boundaries of his Unit, including but not limited to the installation of carpet or other floor coverings and paint or wallpaper, subject to the reasonable rules and regulations adopted by the Association and, with respect to window treatments, Section 7.14 of this Declaration and amended or repealed from time to time, and provided that no action described herein shall require access through another Unit to be completed. SECTION 5 - EASEMENTS 5.1 Easements for Encroachments. If any part of the Common Area encroaches or shall hereafter encroach upon a Unit or Units, an easement for such encroachment and for the maintenance of the same shall and does exist. If any part of a Unit encroaches or shall hereafter encroach upon the Common Area, or upon an adjoining Unit or Units, an easement for such encroachment and for the maintenance of the same shall and does exist. Such encroachments shall not be considered encumbrances on the Common Area or the Units. Encroachments referred to herein include, but are not limited to encroachments caused by settling, rising or shifting of the earth under a Building, or by changes in position caused by repair or reconstruction of a Building or any part thereof. 5.2 Easements of Access for Repair, Maintenance and Emergencies. The Owners shall have the irrevocable right, to be exercised by the Association, as their agent, to have access CONDOMINIUM DECLARATION FOR THE CANTAMERE VILLAGE CONDOMINIUMS - 6 to each Unit and to all Common Area from time to time during such reasonable hours as may be necessary for the maintenance, repair or replacement of any of the Common Area located therein or accessible therefrom, or for making emergency repairs therein necessary to prevent damage to the Common Area or to another Unit or Units or to correct a violation of any restriction set forth in this Declaration when, after reasonable efforts by the Association, the Owner fails to do so. The Association shall also have such right independent of any agency relationship. Damage to the interior of any part of a Unit or Units resulting from the maintenance, repair, emergency repair or replacement of any of the Common Area or as a result of emergency repairs within another Unit at the instance of the Association or of Owners shall be an expense of all of the Owners; provided, however, that if such damage is the result of the negligence of an Owner or such Owner’s invitees, licensees or lessees of a Unit, then such Owner shall be financially responsible for all of such damage. Such damage shall be repaired and the Unit shall be restored substantially to the same condition as existed prior to damage. Amounts owing by Owners pursuant hereto shall be collected by the Association as an Assessment pursuant to Section 9 herein. 5.3 Owner’s Right to Ingress, Egress and Support. Each Owner shall have the right to ingress and egress over, upon and across the Common Area necessary for access to the Owner’s Condominium, and shall have the right to the horizontal and lateral support of such Owner’s Condominium, and such rights shall be appurtenant to and pass with the title to each Condominium. In exercising the rights granted in this Section, each Owner agrees to use commercially reasonable efforts to avoid interference with the access to other Condominiums. 5.4 Association’s Right to Use of Common Area. The Association shall have a nonexclusive easement to make such use of the Common Area as may be necessary or appropriate to perform the duties and functions which it is obligated or permitted to perform pursuant to this Declaration, including the right to grant access easements, utility easements, alter the Common Areas, and construct and maintain maintenance and storage facilities in the Common Area for use by the Association. 5.5 Grantor’s Right Incident to Construction. Grantor and persons it shall select shall have the express and unconditional right to ingress and egress over, upon and across the Project, including the Common Area, the right to store materials thereon and to make other use thereof as may be reasonably necessary or incident to completion of development and construction of the Buildings and Units shown on the Plat and the completion of all Units for use and occupancy; provided, however, neither Grantor nor any Owner shall construct any additional separate principal buildings on the Property without the express written consent of the City of Rexburg. 5.6 Easements Deemed Created. All conveyances of Condominiums hereafter made, whether by the Grantor or otherwise, shall be construed to grant and reserve such reciprocal easements as shall give effect to Sections 5.1, 5.2, 5.3, 5.4, and 5.5 above, even though no specific reference to such easements or to those Sections appear in any such conveyance. 5.7 Emergency Easement. A general easement is hereby granted to all police, sheriff, fire protection, ambulance, and all other similar emergency agencies or persons to enter upon all streets and property within the Project in the proper performance of their duties. The CONDOMINIUM DECLARATION FOR THE CANTAMERE VILLAGE CONDOMINIUMS - 7 easement granted herein is recognized to be a condition of platting the Property imposed by the City of Rexburg. Such easement shall not be dissolved or altered in any material way which would prevent its beneficial use for its intended purpose without the written consent of the City of Rexburg. Owner expressly acknowledges that the Association and the Rexburg Fire Department shall each have one master key capable of accessing all doors, whether or not such door is connected to any common security system. The Owners expressly agree to notify the Association prior to re-keying any lock in the Buildings and agree to use a locksmith approved by the Board. 5.8 Recorded Easements. The Property, and all portions thereof, shall be subject to all easements shown on any recorded Plat affecting the Property, or any portion thereof, and to any other easements of record or of use, including, without limitation, any storm drainage easements, street light easements, sanitary sewer easements, sidewalks, or any other public utility easement shown on the Plat. SECTION 6 - DESCRIPTION OF A CONDOMINIUM Every contract for the sale of a Condominium and every other instrument affecting title to such Condominium shall describe that Condominium by the Unit number shown on the Plat as set forth on Exhibit A, with appropriate reference to the Plat and to this Declaration as such appear in the official records of Madison County, Idaho, in the following manner: Condominium Unit ___, as shown on the Plat of the Cantamere Village Condominiums filed _____________, 2019 in Book ______ of Plats at Page ________, as Instrument No. _____________, official records of Madison County, Idaho, as said plat may be amended or supplemented from time to time, and as defined in the Condominium Declaration for the Cantamere Village Condominiums, recorded as Instrument No. _______________, official records of Madison County, Idaho, as said declaration may be amended or supplemented from time to time. Any Condominium deed may include a designation of Limited Common Area associated with the Unit. Such description shall be construed to describe the Unit, together with an appurtenant undivided ownership interest as tenants-in-common in the Common Area, and to incorporate all the rights incident to ownership of a Condominium and all the limitations on such ownership as described in the Condominium Documents or any amendments or supplements thereto, whether or not so specified in the instrument. SECTION 7 - USE OF CONDOMINIUMS 7.1 Obstructions of Common Area. There shall be no obstruction of the Common Area, nor shall anything be stored on any part of the Common Area without the prior written consent of the Association. Nothing shall be altered on, planted in, constructed on, or removed from the Common Area except upon the prior written consent of the Association. 7.2 Maintenance of Interiors and Limited Common Area. Each Owner shall keep the interior of such Owner’s Unit, including, without limitation, interior walls, windows, glass, CONDOMINIUM DECLARATION FOR THE CANTAMERE VILLAGE CONDOMINIUMS - 8 ceilings, floors and permanent fixtures and appurtenances thereto, in a clean, sanitary, and attractive condition, and good state of repair and shall keep the heating and air conditioning equipment, water heater and related devices exclusively serving the Owner’s Unit in a good state of maintenance. Further, each Owner agrees that such Owner’s Unit will be used exclusively for single-family residential purposes and home office use solely by persons residing in that Unit. Each Owner shall keep the Limited Common Area, designated for the exclusive use of such Owner in connection with the Unit in a clean, sanitary and attractive condition. Each Owner shall notify the Association of any unsafe condition existing in, on or around the Limited Common Area. Each Owner shall notify the Association of any unsafe condition existing in, on or around the Limited Common Area, as identified on the Plat. 7.3 Prohibition of Damage and Certain Activities. Nothing shall be done or kept in any Unit or in the Common Area or any part thereof which would result in the cancellation of or increase in the rate of the insurance on the Project or any part thereof over what the Association, but for such activity, would pay, without the prior written consent of the Association or which would be in violation of any statute, rule, ordinance, regulation, permit or other validly imposed requirement of any governmental body. No damage to, or waste of, the Common Area or any part thereof shall be committed by any Owner, licensee, guest, or other occupant, or any invitee of any Owner, and each Owner shall indemnify and hold the Association and the other Owners harmless against all loss resulting from any such damage or waste caused by Owner, Owner’s invitees, licensees, or guests, provided, however, that any invitee, licensee or guest of an Owner shall not under any circumstances be deemed to be an invitee of any other Owner. No noxious, destructive or offensive activity shall be carried on in any Unit or in the Common Area or any part thereof and nothing shall be done therein which may be or may become an annoyance or nuisance to any other Owner or to any person at any time lawfully residing or working in a Unit. Without limiting the generality of any of the foregoing, no whistles, bells or other sound devices (other than security devices which have been approved by the Board), flashing lights or search lights, shall be located, used or placed on the Common Area or in a Unit, if such placement of such item in a Unit will unreasonably bother or constitute a nuisance to others. No unsightly articles shall be permitted to remain on any portion of the Property so as to be visible from any other portion of the Project, including, but not limited to, flags and political signs. Without limiting the generality of the foregoing, refuse, garbage, trash, equipment, gas canisters, propane gas tanks, barbecue equipment, heat pumps, compressors, containers, lumber, firewood, grass, shrub or tree clippings, plant waste, metals, bulk material, and scrap shall be kept at all times in such containers (or otherwise screened) and in areas approved by the Board. No clothing or fabric shall be hung, dried or aired in a manner inconsistent with the Association Rules. 7.3.1 Owners agree that they will not use or suffer or permit any person or persons to use the Units or any part thereof for any use or purpose in violation of the laws of the United States of America, the State of Idaho, Madison County, Idaho or the city of Rexburg, Idaho, or the ordinances, regulations and requirements of such governmental (public or quasi- public entities) or other lawful authorities. 7.3.2 Owners shall not do or permit anything to be done in or about the Buildings nor bring or keep anything therein which will in any way increase the existing rate or affect any fire or other insurance upon the Buildings or any of their contents (unless the Association has consented in writing to such use and such Owner pays any increased premium as CONDOMINIUM DECLARATION FOR THE CANTAMERE VILLAGE CONDOMINIUMS - 9 a result of such use or acts), or cause a cancellation of any insurance policy covering the Buildings or Condominiums, or any of its contents, nor shall Owners sell or permit to be kept, used or sold in or about said Buildings any articles which may be prohibited by an extended coverage policy of fire and other casualty insurance. 7.3.3 Owner shall not do or permit anything to be done in or about the Unit or Common Area which will in any way obstruct or interfere with the rights of other Owners or occupants in the Buildings, create undue noise and disruption, or injure or annoy them or use or allow the Unit to be used for unlawful or any objectionable purpose, nor shall Owner cause, maintain or permit any nuisance in, or about the Buildings. 7.4 Residential Use; Leasing. All Units shall be used, improved, and devoted exclusively to residential use. No trade or business may be conducted from any Unit, except that a Unit Owner or lessee of a Unit may conduct a business activity within a Unit so long as: (i) the existence or operation of the business activity is not apparent or detectable by sight, sound or smell from outside the Unit; (ii) the business activity conforms to all applicable zoning ordinances or requirements for the Project; (iii) the business activity does not involve the door-to-door solicitation of Unit Owners or other residents in the Project; (iv) the use of the Unit for trade or business shall in no way destroy or be incompatible with the residential character of the Unit or the surrounding neighborhood; (v) the trade or business shall be conducted only inside the Unit, and shall not involve the viewing, purchase or taking delivery of goods or merchandise at, to, from or in any Unit; (vi) no more than twenty percent (20%) of the total floor area of any Unit shall be used for trade or business; (vii) no space within a Unit may be used as a storage facility for a business conducted elsewhere; (viii) the volume of vehicular or pedestrian traffic or parking generated by such trade or business shall not result in congestion or be in excess of what is customary in a residential neighborhood; (ix) a trade or business shall not utilize flammable liquids or hazardous materials in quantities not customary to a residential use; and (x) a trade or business shall not utilize large vehicles not customary to a residential use. The terms "business" and "'trade" as used in this Section shall be construed to have ordinary, generally accepted meanings, and shall include, without limitation, any occupation, work or activity undertaken on an ongoing basis which involves the provision of goods or services to Persons other than the provider's family and for which the provider receives a fee, compensation or other form of consideration, regardless of whether: (a) such activity is engaged in full or part time; (b) such activity is intended to or does generate a profit; or (c) a license is required for such activity. The leasing of a Unit by its Unit Owner shall not be considered a trade or business within the meaning of this Section. All leases must comply with Association Rules. No Unit may be leased for a period of less than thirty (30) days. No more than two (2) unrelated persons may use a Unit for living accommodations at any time. All leases shall be in writing and shall provide that the lease shall be subject in all respects to the provisions of the Project Documents, and any failure by the lessee to comply with the terms of the Project Documents shall be a default under the lease. Upon leasing a Unit, a Unit Owner shall promptly notify the Association of the commencement date and termination date of the lease and the names of each lessee or other person who will be occupying the Unit during the term of the lease. The provisions of this Section do not apply to the Declarant's use of any Unit owned by (or leased to) Declarant as a model or as a sales, marketing or other office, or for marketing purposes. CONDOMINIUM DECLARATION FOR THE CANTAMERE VILLAGE CONDOMINIUMS - 10 7.5 No Hazardous Activities. No activities shall be conducted on the Property, which are or might be unsafe or hazardous to any person or property, including any open fires (except in a contained barbecue unit or city approved gas fire place or fire pit) and/or the discharge of firearms. 7.6 Vehicles and Equipment. Except as otherwise provided in this Section, all Vehicles (as defined below) must be parked, kept, maintained, stored, constructed, reconstructed or repaired only in those areas approved by the Board. For purposes of this Section and Section 4.13 below, the terms "Vehicle" and "Vehicles" include cars, trucks and vans of all sizes, motorcycles, motorbikes, mopeds, mini- bikes, motor scooters, all-terrain vehicles, off-road vehicles, motor homes, recreational vehicles, trailers, travel trailers, tent trailers, camper shells, detached campers, boats, boat trailers, mobile homes, or other similar machinery or equipment, whether motorized or not, whether wheeled or not and whether or not in operating condition. The Board may adopt rules or regulations relating to the number or frequency of guest or visitor Vehicle parking, if it determines, in its discretion, that such rules or regulations are necessary. Except for emergency repairs, no Vehicle shall be repaired, constructed or reconstructed within the Project. Except as expressly provided above, no Vehicle shall be parked on any roadway or street within or adjacent to the Project). 7.7 Towing of Vehicles. The Board has the right, without notice, to have any Vehicle which is parked, kept, maintained, constructed, reconstructed, or repaired in violation of the Project Documents towed away at the sole cost and expense of the owner of the Vehicle. Any expense incurred by the Association in connection with the towing of any Vehicle must be paid to the Association upon demand by the owner of the Vehicle. 7.8 Parking. The Association may allocate or designate parking areas or spaces from time to time as authorized in 8.4.1.3 of this Declaration, and develop any and all necessary regulations for the use of the Owners or their guests. 7.9 Animals/Pets. No animals, fowl, poultry or livestock shall be maintained or kept in any Unit or on any other portion of the Project, except that no more than one (1) Permitted Pets may be kept or maintained in a Unit. "Permitted Pet" means a dog, cat, household bird or other generally recognized household pet. Notwithstanding the foregoing, the Board is authorized to determine, in its discretion and on a case-by-case basis, whether any particular animal or pet is to be considered as a “generally recognized household pet." Permitted Pets may be kept or raised solely as domestic pets and not for commercial purposes. The Board may on a case-by-case basis allow one or more Unit Owners or other occupants to keep more than one (1) Permitted Pet if in the sole discretion of the Board the increased number of Permitted Pets will not negatively impact other Unit Owners or other occupants, taking into account the size and type of animal or pet, the total number of Permitted Pets of the applicable Unit Owner or other occupant, the noise of the animal or pet and any other relevant considerations. The approval by the Board of an increased number of Permitted Pets by a Unit Owner or other occupant shall not be construed as approval to any other Unit Owner or other occupant. No Permitted Pet shall be allowed to make an unreasonable amount of noise, cause an odor, or become a nuisance or annoyance to other Unit Owners or occupants. All dogs shall be kept on a leash not to exceed six (6) feet in length when outside a Unit or any Limited Common Areas allocated to the Unit, and all dogs shall be directly under CONDOMINIUM DECLARATION FOR THE CANTAMERE VILLAGE CONDOMINIUMS - 11 the Unit Owner's or other occupant's control at all times. Any person bringing a dog onto the Common Areas shall immediately remove any feces deposited on the Common Areas by the dog. Any Unit or Limited Common Area where a Permitted Pet is kept or maintained shall at all times be kept in a neat and clean condition. No structure for the care, housing, confinement or training of any animal or pet shall be maintained on any portion of the Common Areas or in any Unit so as to be visible from the exterior of the building in which the Unit is located. Upon the written request of any Unit Owner, the Board shall determine whether, for the purposes of this Section, a Permitted Pet is a nuisance or is making an unreasonable amount of noise or causing an odor. The Board shall have the right to adopt, amend and repeal rules and regulations governing the keeping of Permitted Pets in the Project, and such rules and regulations may include limitations on the height and/or weight of Permitted Pets. 7.10 No Temporary Structures. No house trailer, tent, or other temporary building or structure shall be placed upon any portion of the Property, except by the Grantor during any construction on the Project. 7.11 Energy Devices. No energy production devices, including, without limitation, generators of any kind and solar energy devices, shall be constructed or maintained on in any portion of the Common Area without the written approval of the Board. In the event that the addition or use of such a device is approved by the Board, it must be screened in the manner approved by the Board. 7.12 Over the Air Reception Devices. No antenna, satellite television dish or other device for the transmission or reception of television or radio signals or any other form of electromagnetic radiation shall be erected, used or maintained outdoors on any portion of the Project whether attached to a Unit or structure or otherwise, unless approved in writing by the Board, unless applicable law prohibits the Board from requiring such prior approval. Even if applicable law prohibits the Board from requiring prior approval of certain types of antennas, any such antennas must be installed or constructed in accordance with such rules and regulations as the Board may adopt. 7.13 Signs. No signs (including, but not limited to, "For Sale" or "For Rent" signs) shall be permitted on the exterior of any Unit or building, or in the interior of a Unit if the signs would be visible from the exterior of the building, or on any other portion of the Project without the prior written approval of the Board, except signs required by legal proceedings. 7.14 Rules and Regulations. No Owner, lessee, occupant or invitee shall violate the Association Rules as defined in Section 8.4.1.5. 7.15 Limited Common Areas. Each Owner of a Unit is hereby granted the exclusive use of the Limited Common Area contiguous to and associated with said Unit. No Owner shall, or shall permit anyone else to, paint, stain, repair, replace, add to or otherwise alter any Limited Common Area without the written consent of the Board. Additionally, nothing shall be stored in or placed on any Limited Common Area except upon the written consent of the Board. Further, except for the Units shown on the Plat, no Owner shall construct a building in the Project for residential purposes or otherwise without the prior written approval of the City of Rexburg and the Association. CONDOMINIUM DECLARATION FOR THE CANTAMERE VILLAGE CONDOMINIUMS - 12 All maintenance and repair in the Limited Common Area shall be conducted through the Association. The Owner shall be responsible for all costs associated with such maintenance and repair, including a reasonable supervisory fee. 7.16 Window Treatments. All window treatments which are visible from the exterior of the Unit shall not cause the exterior of any Building to be unsightly, which shall be determined in the sole discretion of the Board. All windows treatments shall be in compliance with and subject to Association Rules, as amended from time to time. 7.17 Structural Alterations. No Owner shall make any alterations to any Unit that would cause structural weakness or damage, and no architectural changes, plumbing, electrical or similar work within the Common Area shall be performed without the prior written consent of the Board. All such approved work shall comply with all applicable law. 7.18 Sewer System Restrictions. No Owner or other Person shall deposit any glass, metal, seafood shells, diapers, clothing, rags, plastic, sanitary napkins, tampons, flammable material, oil, gas, grease, chemicals or other objects or materials other than natural human waste into the sewer system either directly or through an Owner’s kitchen waste disposal unit. The cost of any and all damage sustained by the sewer system caused by an Owner’s deposit in the sewer system of any of the items listed above shall be the sole responsibility of said Owner. 7.19 Deed Restrictions. No Owner may divide or adjust such Owner’s Unit without the prior written approval of the Association and the City of Rexburg. 7.20 Right to Enjoy and Use Units. Each Owner shall be entitled to use and enjoy his/her Unit for its intended purpose and nothing herein is intended to impose or grant the authority to impose any restrictions, limitations or prohibitions which would deprive an Owner of the reasonable use and enjoyment of his/her Unit. Notwithstanding the foregoing, no Owner shall be entitled to use his/her Unit for any uses not allowed under the Rexburg Municipal Code or otherwise limited by this Declaration or any other Condominium Documents. SECTION 8 - THE CANTAMERE VILLAGE CONDOMINIUMS OWNERS’ ASSOCIATION 8.1 Creation. This Declaration designates and creates the Association as a non-profit corporation under the laws of the State of Idaho. The Association shall be organized by the Grantor and operated by the Association to carry out and enforce the Restrictions set forth in this Declaration with respect to the Project and to serve as the Management Body for the Project. 8.1.1 Membership. Every Owner shall be entitled and required to be a member of the Association. Each Unit in the Buildings shall be entitled to one (1) membership, either a Class A membership or Class B Membership as described herein, in the Association. No person or entity other than an Owner may be a Member of the Association, and the Articles and/or Bylaws of the Association shall so state and shall in addition state that the memberships in the Association may not be transferred except in connection with the transfer of a Condominium or portion thereof. Provided, however, that the rights of membership may be assigned to a Mortgagee as further security for a loan secured by a lien on a Condominium or to any person or CONDOMINIUM DECLARATION FOR THE CANTAMERE VILLAGE CONDOMINIUMS - 13 organization that has assumed by contract, or otherwise, liability for paying assessments of any Owner. Pursuant to the terms and time limits set forth in Section 8.2, there shall be initially two (2) classes of membership. All Owners, including the Grantor, shall be deemed Class A members and the Grantor shall be deemed the Class B member, and each shall have those rights set forth in Section 8.2. 8.2 Voting Rights in the Association. Each Owner of a Unit shall be entitled to the number of votes allocated to each Owner’s Unit, as identified on Exhibit D, representing that Owner’s percentage ownership interest in the Common Area and each owner shall be a Class A member. When more than one (1) person holds such interest in any Condominium, all such persons shall be Members, but all such persons deemed Class A members shall only be entitled to the number of votes established for such Unit. Except as otherwise provided herein, all matters submitted to a vote of the Association shall be determined, made, or approved or authorized upon a majority (51% or more) vote, i.e. the votes in favor exceed those opposed. Notwithstanding anything in this Declaration to the contrary, the Grantor, as the Class B member, for a period of three (3) years following the recordation of the first deed to a Condominium, shall have the exclusive right, power and authority to appoint and elect the Board and otherwise manage the affairs of the Project so long as the Grantor owns a Unit in the Project. The Class B member shall cease to be a voting Member of the Association at the earlier of (i) three (3) years after the recordation of the first deed to a Condominium; or (ii) four (4) months after the sale of one hundred percent (100%) of the total Units. Until such time Grantor is no longer a Class B member, Class A members shall not be entitled to any voting rights set forth in this Section 8.2. 8.3 Transfer. Except as otherwise expressly stated herein, any of the rights, interests and obligations of the Association set forth herein or reserved herein may be transferred or assigned to any other person or entity; provided, however, that no such transfer or assignment shall relieve the Association of any of the obligations set forth herein and no such transfer or assignment shall revoke or change any of the rights or obligations of any Owners as set forth herein. 8.4 Powers and Duties of the Association. 8.4.1 Powers. The Association shall have all the powers of a non-profit corporation organized under the general non-profit corporation laws of the State of Idaho subject only to such limitations upon the exercise of such powers as are expressly set forth in the Condominium Documents as the same may be amended from time to time, and is hereby designated the “Management Body” of the Project as provided in the Condominium Act. The Association, functioning through the Board, shall have the power to do any and all lawful things which may be authorized, required or permitted to be done by the Association under the Condominium Documents and necessary or proper for, or incidental to the proper management, operation and administration of the Project, including, without limitation: CONDOMINIUM DECLARATION FOR THE CANTAMERE VILLAGE CONDOMINIUMS - 14 8.4.1.1 Assessments. The power to levy Assessments on the Owners of Condominiums and to force payment of such Assessments. 8.4.1.2 Right of Enforcement. The power and authority from time to time in its own name, on its own behalf or on behalf of any Owner or Owners who consent thereto, to commence and maintain actions and suits to restrain and enjoin any breach or threatened breach of the Condominium Documents, including the Association Rules as defined herein and adopted pursuant to this Declaration, and to enforce by mandatory injunction or otherwise, all provisions hereof. 8.4.1.3 Parking. The power and authority from time to time to re- assign and relocate any parking areas, or assign and identify individual parking spaces among Owners, or identify or restrict any on-street parking, if necessary to comply with applicable laws, regulations or ordinances. 8.4.1.4 Delegation of Powers. The authority to delegate its power and duties to committees, officers, employees, or to any person, firm or corporation to act as the Management Body as defined in the Condominium Act, and specifically the authority to delegate its powers and duties to a management firm pursuant to a management agreement; provided, however, that any delegation of the Association’s powers and duties may be revoked upon thirty (30) days written notice to such management firm. Neither the Association nor the members of the Board shall be liable for any omission or improper exercise by any person or entity to whom any such duty or power has been delegated. Any person or entity delegated any powers authorizing it to act as the Management Company shall be required to carry all appropriate insurance, including, but not limited to workers’ compensation, liability insurance and bonds, and such Management Company shall ensure that any other person or entity working on the Project on the Management Company’s behalf shall carry the same. 8.4.1.5 Association Rules. The power to adopt, amend and repeal by majority vote of the Board such rules and regulations as the Board deems reasonable or proper from time to time (the “Association Rules”) including fees and/or fines for violation of the Condominium Documents and the Association Rules. The Association shall have the express authority to make and enforce any rules, regulations, restrictions, protocols and procedures regarding construction activities, use of the Limited Common Area, vehicles and equipment, the leasing and renting of the Units, social events, animals and pets, moving hours and any other events or items related to the Project or the use and enjoyment thereof. The Association shall govern the use of the Units and Common Area by the Owners, their invitees, licensees, lessees, occupants, and contract purchasers of Owners, it being understood that the Association Rules shall apply equally to all Owners and shall not be inconsistent with the Condominium Documents. A copy of the Association Rules as they may from time to time be adopted, amended or repealed, shall be mailed or otherwise delivered to each Owner. Upon such mailing or delivery, said Association Rules shall have the same force and effect as if they were set forth in and were part of this Declaration. In the event of any conflict between any such Association Rules and any other provision of the Condominium Documents, the provisions of the Association Rules shall be deemed to be superseded by the provisions of the Condominium Documents to the extent of any such inconsistency. The Association Rules may from time to time supplement and add to the Condominium Documents. CONDOMINIUM DECLARATION FOR THE CANTAMERE VILLAGE CONDOMINIUMS - 15 8.4.1.6 Emergency Powers. The power to enter upon any Unit as necessary in connection with any maintenance or construction for which it is responsible, or when necessitated by violation of this Declaration or Association Rules, or in the event of any emergency involving illness or potential danger to life or property and may take corrective action. Such entry shall be made with as little inconvenience to the Owners as practicable and any damage caused thereby shall be repaired by the Association, except as otherwise provided herein. Owners acknowledge that the Rexburg Fire Department and the Association shall have a master key to all locks in the Buildings or on the Project. Owner further agrees to notify the Board and employ a locksmith approved by the Board before any locks may be changed to preserve the system. 8.4.1.7 Licenses, Easements and Rights-of-Way. The power to grant and convey to any third party such licenses, easements and rights-of-way in, on or under the Common Area as may be necessary or appropriate for the orderly maintenance, preservation and enjoyment of the Project and for the preservation of health, safety, convenience and welfare of all the Owners, for the purpose of constructing, erecting, operating or maintaining: 8.4.1.7.1 Underground lines, cable, wires, conduits or other devices for the transmission of electricity for lighting, heating, power, telephone, television, other utility services and above-ground lighting structures, meters and other facilities associated with the provision of lighting and services. 8.4.1.7.2 Sewers, storm drains, water drains and pipes, water systems, sprinkling systems, water, heating and gas lines or pipes; and 8.4.1.7.3 Cross parking easements, sidewalk abutments, drive lanes, parking areas, curb cuts, landscaping abutting Common Areas, public and private streets or land conveyed for any public or quasi-public purpose. 8.4.1.7.4 Reciprocal use of all common areas within the Cantamere Village Planned Unit Development. 8.4.1.8 Miscellaneous Services. The power to obtain and pay for the services of any person or entity to manage its affairs, or any part thereof, to the extent it deems advisable, as well as such other personnel as the Association shall determine to be necessary or desirable for the proper operation of the Project, whether such personnel are furnished or employed directly by the Association or by any person or entity with whom or which it contracts. The Association may arrange with others to furnish electrical, water, sewer, trash collection services, and other common services to each Condominium (subject to reimbursement by the respective Owner for such services as an Assessment), and may obtain and pay for legal and accounting services necessary or desirable in connection with the operation of the Project or the enforcement of this Declaration. 8.4.1.9 Property for Common Use. The power to acquire and hold for the use and benefit of all of the Owners, or for the benefit of only those Owners within a particular Condominium, tangible and intangible personal property and real property and may dispose of the same by sale or otherwise, and the beneficial interest in any such property shall be CONDOMINIUM DECLARATION FOR THE CANTAMERE VILLAGE CONDOMINIUMS - 16 deemed to be owned by the Owners in the same proportion as their respective interest in the Common Area. Such interest shall not be transferable except with the transfer of a Condominium. Each Owner may use such property in accordance with the purpose for which it is intended, without hindering or encroaching upon the lawful rights of other Owners. 8.4.1.10 Inspection. The power and authority to enter a Unit for the purpose of conducting a regular maintenance inspection. 8.4.1.11 Implied Rights. Notwithstanding the foregoing, the Association may exercise any other right or privilege given to it expressly by this Declaration or by law, and every other right or privilege reasonable to be implied from the existence of any right or privilege given to it herein or reasonably necessary to effectuate any such right or privilege. Such rights shall include, without limitation, the right to acquire water meters for each Unit. 8.4.1.12 Public Right of Ways. The power and authority to maintain all areas associated with the Project that may be in the public right of way and to charge any assessments, as deemed necessary in the Association’s sole discretion, to pay for all costs associated with this maintenance. 8.4.1.13 Litigation. The power and authority to file lawsuits or institute other legal proceedings on behalf of and for the benefit of the Association, as a whole, upon obtaining the approval of fifty-one percent (51%) or more of the Members. 8.4.2 Duties of the Association. In addition to the power delegated to it by the Condominium Documents, the Association or its agents shall have the obligation to conduct all business affairs of the Association and to perform, without limitation, each of the following duties: 8.4.2.1 Operation and Maintenance of Common Area. Operate, maintain and otherwise manage or provide for the operation, maintenance and management of the Common Area and all improvements thereon, including parking areas, drive lanes, common seepage beds, storm sewers or related storm drainage facilities and the exteriors of Buildings as described in Section 8.4.2.5 below and including the repair and replacement of property damaged or destroyed by casualty loss and all other property acquired by the Association, and maintaining the same in a good, clean, attractive and sanitary condition, order and repair. 8.4.2.2 Taxes and Assessments. Pay all real and personal property taxes and assessments separately levied against the Common Area, if any, owned and managed by the Association or against the Association and any property owned by the Association and all such taxes shall be paid or a bond insuring payment posted prior to the sale or the disposition of any property to satisfy the payment of such taxes. In addition, the Association shall pay all other taxes, federal, state or local, including income or corporate taxes levied against the Association in the event that the Association is denied the status of a tax exempt corporation. 8.4.2.3 Water and Other Utilities. Acquire, provide and/or pay for water, pressurized irrigation system water and maintenance, storm drainage system maintenance, CONDOMINIUM DECLARATION FOR THE CANTAMERE VILLAGE CONDOMINIUMS - 17 sewer, garbage disposal, refuse and rubbish collection and other necessary services for the Common Area and Units. 8.4.2.4 Insurance. Obtain, from reputable insurance companies authorized to do business in the State of Idaho and maintain in effect the policies of insurance described in Section 13 hereof. 8.4.2.5 Maintenance of Exteriors and Improvements. Maintain and repair the exterior surfaces of the Buildings and improvements in the Project. The exterior maintenance shall include: painting, staining, repairing, restaining, replacing and caring for all exterior surfaces including roofs and exterior portions of doors as necessary to maintain them in good condition. 8.4.2.6 Inspection and Maintenance Guidelines. The Board shall adopt inspection and maintenance guidelines for the periodic inspection and maintenance of the Common Area, including, without limitation, the sewer system and drainage facilities. The Board periodically, and at least once every two (2) years, shall review and update the inspection and maintenance guidelines. The Board shall take all appropriate steps to implement and comply with the inspection and maintenance guidelines, and shall keep records of such implementation and compliance. 8.4.2.7 Drainage Facilities. Operate and maintain all storm drainage systems and restricted Buildings area. Notwithstanding anything to the contrary, no buildings or other similar improvements shall be constructed within the storm drainage and restricted Buildings area that would materially interfere with the Property’s drainage system. 8.4.2.8 Operation and Maintenance of Sidewalks and Landscaping. The Board shall operate, maintain and otherwise manage or provide for the operation, maintenance and management of the sidewalks and parking areas, including, without limitation, snow removal, and landscaping located within the Project or located in the public right of way, adjacent to the Project. 8.5 Maintenance of Records and Right of Inspection. The Association shall keep and maintain at its principal place of business, current copies of the Condominium Documents, any rules and regulations applicable to the Property and its books, records and financial statements. The membership register, books of account and minutes of meetings of the Board and committees of the Association shall be made available for inspection and copying by any Owner or by such Owner’s duly appointed representatives, at any reasonable time and for a purpose reasonably related to such Owner’s interest as an Owner at the office of the Association or at such other place as the Board shall prescribe. No Owner or any other person shall copy the membership register for the purposes of solicitation of or direct mailing to any Owner. 8.6 Amplification. The provisions of this Section are amplified by the Bylaws; provided, however, that no present or future provision of such Bylaws shall substantially alter or amend any of the rights or obligations of the Owners set forth herein. CONDOMINIUM DECLARATION FOR THE CANTAMERE VILLAGE CONDOMINIUMS - 18 8.7 Use of Association Powers. Notwithstanding the foregoing, the Association shall not take any action that would impair an Owner’s right to enjoy and use his/her Unit as set forth herein, and, in particular in Section 7.19. SECTION 9 - ASSESSMENTS 9.1 Covenant to Pay Assessments. By acceptance of a deed to any Condominium, each Owner of such Condominium thereby covenants and agrees to pay when due all Assessments or charges made by the Association against such Owner pursuant to the provisions of this Section 9 and this Declaration. The due date, manner and method of payment shall be as set forth in this Declaration or as established by the Board from time to time. 9.2 Initial Assessments. Owners acquiring their Condominiums from Grantor agree to pay an initial Assessment and deposit reserves as part of any conveyance through deed or other recorded instrument of a Condominium or portion of a Condominium, as provided for herein, that shall be used to purchase personal property for the Building, including, but not limited to seasonal decorations and furnishings for Common Area and to establish contingency and replacement reserves. 9.3 Rate of Assessment. Except as otherwise provided herein, all Owners shall be responsible for Regular Assessments and Special Assessments levied by the Association in proportion to their percentage ownership interest in the Common Area, as set forth on Exhibit D. All Owners shall be responsible for Limited Assessments levied by the Association, as set forth in Section 9.8. 9.4 Assessment Constitutes Lien. The Assessments and charges together with interest, costs, including, but not limited to any fees incurred by the Management Company, and reasonable attorneys’ fees, all which may be incurred in collecting the same, shall be a charge on the Condominium against which each such Assessment or charge is made. 9.5 Assessment is Personal Obligation. Each of the Assessments, together with interest, costs and reasonable attorneys’ fees, shall also be the personal obligation of the Owner of such Unit at the time such Assessments become due. The personal obligation for delinquent Assessments shall not pass to such Owner’s successors in title unless expressly assumed by them but shall remain such Owner’s personal obligation regardless of whether he/she/it remains an Owner. Notwithstanding the foregoing, a purchaser of a Condominium shall be jointly and severally liable with the seller for all unpaid assessments against the Condominium up to the time of grant or conveyance without prejudice to the purchaser’s right to recover from the seller the amount paid by the purchaser for such Assessments. 9.6 Regular Assessments. 9.6.1 Purpose of Regular Assessments. The proceeds from Regular Assessments are to be used to pay for all costs and expenses incurred by the Association, including legal and attorneys’ fees and other professional fees, for the conduct of its affairs as provided in Section 8, including without limitation the costs and expenses of construction, improvement, protection, maintenance, repair, management and operation of the Common Area or furnishing utility services, including water and sewer, and other common services to each Unit CONDOMINIUM DECLARATION FOR THE CANTAMERE VILLAGE CONDOMINIUMS - 19 (if separately metered), any deficit remaining from previous periods, a management contingency reserve, and an amount allocated to an adequate reserve fund to be used for repairs, replacement, maintenance and improvement of those elements of the Common Area, or other property of the Association that must be replaced and maintained on a regular basis (collectively the “Expenses”). Grantor and/or the Association reserves the right to separately meter utility services provided to each Condominium, and in such event the Owner of the Condominium shall be fully responsible for the costs of providing utilities for the Owner’s individual use. 9.6.2 Computation of Regular Assessments. Unless otherwise determined by the Board, the Association shall compute and forecast the amount of its Expenses and Regular Assessments on an annual basis. The computation of Regular Assessments shall take place not less than thirty (30) nor more than sixty (60) days before the beginning of each fiscal year of the Association, unless a change in Members or the Management Company makes it impracticable to compute the Regular Assessments in the time frame. In such event, the Owners shall be immediately notified upon completion of such computation. Notwithstanding the foregoing, the computation of Regular Assessments shall be completed in good faith and shall be valid upon completion. The computation of the Regular Assessments for the period from the recordation of this Declaration until the beginning of the next fiscal year shall be reduced by an amount which fairly reflects the fact that such period was less than one year. The Board shall have the exclusive right to approve any Assessment under this Section 9. Expenses and Regular Assessments shall be levied by the Association against Owners in proportion to their percentage ownerships in the Common Area as set forth on Exhibit D. 9.7 Special Assessments. In the event that the Board shall determine that the Regular Assessment for a given calendar year is or will be inadequate to meet the Expenses of the Association for any reason, including, without limitation, costs of construction, reconstruction, unexpected repairs or replacement of improvements upon the Common Area, attorneys fees and/or litigation costs, other professional fees, or for any other reason, the Board shall determine the approximate amount necessary to defray such Expenses and levy a Special Assessment. The Board shall, in its discretion, determine the schedule under which such Special Assessment will be paid. 9.8 Limited Assessments. 9.8.1 Corrective Actions. The Association may levy against any Owner a Limited Assessment equal to the costs and expenses incurred by the Association, including legal and management fees, for the construction, installation, inspection, operation, maintenance, repair and replacement of the Common Area, equipment and facilities located thereon, including any corrective action necessitated due to damage by the negligent acts of an Owner, or any person or entity occupying a Condominium with the Owner’s consent, either expressed or implied, or for costs and expenses incurred in bringing the Owner’s Condominium into compliance with the provisions of the Condominium Documents. 9.8.2 Extraordinary Expenses. A Limited Assessment may also be levied against any Owner or group of Owners whose Unit requires or consumes a material disproportionate percentage of water, sewer, heating, ventilation, and air conditioning services and charges or any other Expense. If such Limited Assessment shall affect more than one CONDOMINIUM DECLARATION FOR THE CANTAMERE VILLAGE CONDOMINIUMS - 20 Condominium, but not the entire Building in which the Unit is located, the Owners of the effected Condominiums shall pay those costs associated solely with their Condominiums in proportion to their percentage ownership, while all Owners shall share such costs associated with the Common Area in proportion to their percentage ownership interest set forth on Exhibit D, as applicable. 9.9 Notice and Assessment Due Date. Unless the Board establishes a different schedule for the payment of Regular Assessments, monthly installments of the Regular Assessment shall become delinquent if not paid by the first (1st) day of each month. If not paid within five (5) days, a late fee equal to ten percent (10%) of the Assessment shall be charged to the Owner. Each Assessment, other than a Regular Assessment, shall be become delinquent if not paid within ten (10) days of the date of notice thereof to the Owner. With each delinquent payment, a single late charge up to ten percent (10%) of the delinquent installment shall be charged. In addition, each installment payment which is delinquent for more than twenty (20) days may accrue interest at the lesser of (i) twelve percent (12%) per annum or (ii) the maximum rate allowed by the law of the State of Idaho calculated from the date of delinquency to and including the date full payment is received by the Association. The Association may bring an action against any delinquent Owner and may foreclose the lien against such Owner’s Condominium, as more fully provided herein. The Association expressly reserves its rights to file any liens against such Owner pursuant to city, county and/or state law for any payment not made by the fifteenth (15th) day of the month for Regular Assessments or fifteen (15) days after notice of any other Assessment. 9.10 Estoppel Certificate. The Association, upon at least twenty (20) days prior written request, shall execute, acknowledge and deliver to the party making such request, a statement in writing stating whether or not, to the knowledge of the Association, a particular Owner is in default under the provisions of this Declaration, and further stating the dates to which any Regular and Special Assessments have been paid by the Owner. Any such certificate delivered pursuant to this Section may be relied upon by any prospective purchaser or mortgagee of the Owner’s Condominium. Reliance on such Certificate may not extend to any default as to which the signor shall have had no actual knowledge. Owners agree to pay for all reasonable costs associated with obtaining this estoppel certificate. 9.11 No Reserves Provided by Grantor. Owners acknowledge and agree that they have been fully notified and informed that the Grantor did not or will not pay any part of or contribute any initial assessments or deposit reserves for use in the Project. 9.12 Grantor’s Assessment Obligations. For a period of two (2) years following the recordation of the Plat, Grantor shall only be responsible for the lesser of (1) the shortfall of any operating costs of the Project after the collection of all dues and assessments from the Owners, excluding the Grantor or (2) those dues and assessments, less any assessed reserves for replacement, assessed to those Units owned by the Grantor. SECTION 10 - ENFORCEMENT OF ASSESSMENTS; LIENS 10.1 Right to Enforce. The Association has the right to collect and enforce its Assessments, including any late charges and/or interest accrued thereon, pursuant to the CONDOMINIUM DECLARATION FOR THE CANTAMERE VILLAGE CONDOMINIUMS - 21 provisions hereof. Each Owner shall be deemed to covenant and agree to pay each and every Assessment provided for in this Declaration, including any late charges and/or interest accrued thereon, and agrees to the enforcement of all Assessments in the manner herein specified. In the event an attorney or attorneys are employed for the collection of any Assessment, whether by suit or otherwise, or to enforce compliance with or specific performance of the terms and conditions of this Declaration, each Owner agrees to pay reasonable attorneys’ fees and costs, including the costs and expenses for any lien releases, in addition to any other relief or remedy obtained against such Owner. The Board or its authorized representative may enforce the obligations of the Owners to pay such Assessments by commencement and maintenance of a suit at law or in equity, or the Board may exercise the power of foreclosure and sale pursuant to this Section to enforce the liens created pursuant to this Section. A suit to recover a money judgment for an unpaid Assessment shall be maintainable without foreclosing or waiving the lien hereinafter provided. 10.2 Assessment Liens. 10.2.1 Creation. There is hereby created a claim of lien with power of sale on each and every Condominium to secure payment of any and all Assessments levied against such Condominium pursuant to this Declaration together with interest thereon at the maximum rate permitted by law and all costs of collection which may be paid or incurred by the Association making the Assessment in connection therewith, including reasonable attorneys’ fees. All sums assessed in accordance with the provisions of this Declaration shall constitute a lien on such respective Condominium upon recordation of a notice of assessment with the Madison County Recorder. Such lien shall be prior and superior to all other liens or claims created subsequent to the recordation of the notice of assessment except for tax liens for real property taxes on any Condominium and any assessment on any Condominium in favor of any municipal or other governmental assessing body which, by law, would be superior thereto. 10.2.2 Notice of Assessment. Upon default of any Owner in the payment of any Assessments issued hereunder, the Association may cause to be recorded in the office of the Madison County Recorder a notice of assessment. The notice shall state the amount of such Assessment and other authorized charges (including the cost of recording such notice), a sufficient description of the Condominium against which the same have been assessed, and the name of the record Owner thereof. Each assessment shall constitute a separate basis for a notice of assessment, but any number of assessments may be included within a single notice. Upon payment to the Association of such assessment and charges in connection therewith or other satisfaction thereof, the Association shall cause to be recorded a further notice stating the satisfaction and the release of the lien thereof. The Association may demand and receive the cost of preparing and recording such release before recording the same. 10.3 Method of Foreclosure. Such lien may be foreclosed by appropriate action in court or by sale by the Association, its attorney or other person authorized to make the sale. Such sale shall be conducted in accordance with the provisions of the Idaho Code applicable to the exercise of powers of sale in deeds of trust or any other manner permitted by law. The Board is hereby authorized to appoint its attorney, any officer or director of the Association, or any title company authorized to do business in Idaho as trustee for the purpose of conducting such power of sale or foreclosure. CONDOMINIUM DECLARATION FOR THE CANTAMERE VILLAGE CONDOMINIUMS - 22 10.4 Required Notice. No action may be brought to foreclose the lien created by recordation of the notice of assessment, whether judicially, by power of sale or otherwise, until the expiration of thirty (30) days after a copy of such notice of assessment has been deposited in the United States mail, certified or registered, postage prepaid, to the Owner described in such notice of assessment, and to the person in possession of such Condominium(s) and a copy thereof is recorded by the Association in the Madison County Recorder’s Office. 10.5 No Subordination. The lien for the Assessments provided for herein in connection with a given Condominium shall not be subordinate to the lien of any Mortgage filed and recorded after the date of such Assessment. Notwithstanding the foregoing, all delinquent Assessments shall be subordinate to any mortgage recorded with in the real property records of Madison County, Idaho prior to the date of the Assessment. The sale or transfer of any Condominium shall affect neither the Assessments lien provided for herein, nor the creation thereof by the recordation of a notice of assessment, on account of the Assessments becoming due whether before, on, or after the date of such sale or transfer, nor shall such sale or transfer diminish or defeat the personal obligation of any Owner for delinquent Assessments as provided for in this Declaration. 10.6 Rights of Mortgagees. Notwithstanding any other provision of this Declaration, no amendment of this Declaration shall operate to defeat the rights of a Mortgagee under any Mortgage encumbering a Condominium made in good faith and for value, and recorded prior to the recordation of such amendment, provided that after the foreclosure of any such Mortgage, such Condominium shall remain subject to this Declaration, as amended. In the event a Mortgagee obtains title to any Condominium by any method permitted under law and/or pursuant to all remedies provided in this Declaration, and/or pursuant to any provisions in the Mortgage, such Mortgagee will not be liable for any such Condominium’s unpaid dues or charges which accrue prior to the acquisition of title to such Condominium by such Mortgagee. Further, upon obtaining title to any such Condominium, such Mortgagee shall have the unrestricted right to exercise any vote as may be attributable to such Condominium in any meeting of the Association or otherwise. Any encumbrancer holding a lien on a Condominium may pay, but shall not be required to pay, any amounts secured by the lien created pursuant to this Section, and upon such payment such encumbrancer shall be subrogated to all rights of the Association with respect to such lien, including priority. A Mortgagee shall be responsible for all delinquencies associated with a mortgaged Condominium after being notified of such delinquencies prior to the beginning of any foreclosure proceedings on such Condominium. A Mortgagee shall be entitled to cure a default in payment of Assessments by paying all past due Assessments which accrued no more than sixty (60) days prior to the date that such Mortgagee was first notified by mail of such Owner’s failure to pay Assessments past due. In the event of a foreclosures on any first mortgage, the Mortgagee thereof shall take the Condominium interest subject to all unpaid Assessments, except to the extent such liability has been limited by exercise of the cure option set forth in herein. CONDOMINIUM DECLARATION FOR THE CANTAMERE VILLAGE CONDOMINIUMS - 23 SECTION 11 - RIGHTS TO COMMON AREAS 11.1 Use of Common Area. Every Owner shall have a nonexclusive right and easement to use the Common Area (exclusive of Limited Common Area) and an exclusive or semi-exclusive right to use Limited Common Area designated for exclusive or semi-exclusive use by the Owner, which shall be appurtenant to and shall pass with the title to every Condominium, subject to the following provisions: 11.1.1 Assessments. The rights of the Association to levy Assessments as provided herein and the payment by an Owner of all such Assessments; 11.1.2 Voting. The right of the Association to suspend the voting rights and rights to use of or interest in Common Area by an Owner for any period during which any Assessments or charges against such Owner’s Condominium remains unpaid; 11.1.3 Dedication or Transfer. The right of the Association to dedicate or transfer all or any part of Common Areas to any public agency, authority or utility for such purposes and subject to such conditions as may be agreed to by the Members. No dedication or transfer shall be effective unless an instrument verifying such dedication or transfer is executed and recorded by the Association verifying that (i) Members representing fifty-one percent (51%) or more of the total number of votes which may be cast by all of the Members, and (ii) fifty-one percent (51%) or more of all Mortgagees have approved such dedication or transfer; and 11.1.4 Association Rules. The right of the Association to establish and enforce such Association Rules as the Association deems proper regarding the Project and use of Common Area. 11.2 Delegation of Right to Use. Any Owner may delegate in accordance with the respective Condominium Documents, such Owner’s reasonable right of enjoyment to the Common Area to his or her licensees, invitees and lessees, or contract purchasers who reside in such Condominium. 11.3 Damages. Each Owner shall be liable for expenses for corrective action necessitated by violation of this Declaration or Association Rules or for any damage to such Common Area which may be sustained by reason of his or her guests, invitees or licensees. In the case of joint ownership of a Condominium, the liability of such Owners shall be joint and several. The cost of corrective action shall be assessed as an Assessment against the Condominium and may be collected as provided herein for the collection of other Assessments. SECTION 12 - MECHANIC’S LIEN RIGHTS No labor performed or services or materials furnished with the consent of or at the request of an Owner or such Owner’s agent, contractor or subcontractor shall be the basis for the filing of a lien against the Condominium of any other Owner or against any part thereof, or against any other property of any other Owner, unless such other Owner has expressly consented to or requested in writing the performance of such labor or furnishing of such materials or services. Such express written consent shall be deemed to have been given by the Owner of any Condominium in the case of emergency corrective action undertaken by the Association. Labor CONDOMINIUM DECLARATION FOR THE CANTAMERE VILLAGE CONDOMINIUMS - 24 performed or services or materials furnished for the Property if duly authorized by the Association shall be deemed to be performed or furnished with the express consent of each Owner. Any Owner may remove his or her Condominium from a lien against two or more Condominiums or any part thereof by payment of sums secured by such lien which is attributable to such Owner’s Condominium. SECTION 13 - INSURANCE 13.1 Types of Insurance. The Association shall obtain and keep in full force and effect at all times the following insurance coverage provided by reputable companies duly authorized to do business in Idaho. The provisions of this Section shall not be construed to limit the power or authority of the Association to obtain and maintain insurance coverage, in addition to any insurance coverage required hereunder, in such amounts and in such forms as the Association may deem appropriate from time to time. 13.1.1 Casualty Insurance. The Association shall obtain insurance on the Buildings in such amounts as shall provide for full replacement thereof, including, but not limited to, those costs associated with rebuilding, design, any required permits, legal fees and any other fees associated with the replacement of the Buildings, in the event of damage or destruction from the casualty against which such insurance is obtained. Such insurance shall include fire and extended coverage, vandalism and mischief, and such other risks and hazards against which the Association shall deem it appropriate to provide insurance protection. The Association may comply with the above requirements by the purchase of blanket coverage and may elect such “deductible” provisions as in the Association’s opinion are consistent with good business practice. 13.1.2 Public Liability and Property Damage Insurance. The Association shall purchase broad form comprehensive liability coverage in such amounts and in such forms as it deems advisable to provide adequate protection. Coverage shall include, without limitation, liability for personal injuries, operation of automobiles on behalf of the Association, and activities in connection with the ownership, operation, maintenance and other use of the Buildings. 13.1.3 Workers’ Compensation and Employer’s Liability Insurance. The Management Company shall purchase, on behalf of the Association, workers’ compensation and employer’s liability insurance and all other similar insurance in respect to employees of the Association in the amounts and in the forms now or hereafter required by law. 13.1.4 Fidelity Insurance. The Management Company shall purchase in such amounts, on behalf of the Association, and in such form as it shall deem appropriate coverage against liability of its officers and directors, dishonesty of employees, destruction or disappearance of money or securities, and forgery. 13.1.5 Other. The Association may obtain insurance against such other risks, of a similar or dissimilar nature, as it shall deem appropriate with respect to the Buildings, including any personal property of the Association located thereon. CONDOMINIUM DECLARATION FOR THE CANTAMERE VILLAGE CONDOMINIUMS - 25 13.1.6 Optional Insurance. The Association may obtain the following types of insurance coverage, but is not required to do so. 13.1.6.1 Personal Property Casualty Insurance. The Association may in its discretion obtain casualty and public liability insurance on the personal property and furnishings initially placed in any Units by Grantor, if any, upon completion of construction of the Buildings in such amounts as shall provide for the full replacement thereof in the event of damage or destruction from casualties against which such insurance is obtained. It is expressly understood that any Owner desiring to obtain additional condominium insurance may do so at the sole cost of the Owner. 13.1.6.2 Casualty and Public Liability Insurance. The Association may in its discretion obtain casualty and public liability insurance coverage, in amounts it may select, with respect to an Owner’s activities within each Unit. 13.1.7 Form. Casualty insurance shall be carried in a form or forms naming the Association as the insured as trustee for the Owners, which policy or policies shall specify the interest of each Owner (Owner’s name, Unit number, and the appurtenant undivided interest in the Common Area) and which policy or policies shall provide a standard loss payable clause providing for payment of insurance proceeds to the Association as trustee for the Owners and for the respective first Mortgagees which from time to time shall give notice to the Association of such Mortgages, such proceeds to be used in accordance with this Declaration. Each policy shall also provide that it cannot be canceled by either the insured or the insurance company until after ten (10) days’ prior written notice is first given to each Owner and to each first Mortgagee requesting such notice. The Association shall furnish to each Owner and to Grantor a true copy of such policy together with a certificate identifying the interest of the Owner. All policies of insurance shall provide that the insurance thereunder shall be invalidated or suspended only in respect to the interest of any particular Owner guilty of breach of warranty, act, omission, negligence or noncompliance with any provision of such policy, including payment of the insurance premium applicable to that Owner’s interest or who permits or fails to prevent the happening of any event, whether occurring before or after a loss, which under the provisions of such policy would otherwise invalidate or suspend the entire policy. All policies of insurance shall provide further that the insurance under any such policy as to the interest of all other insured Owners not guilty of any such act or omission, shall not be invalidated or suspended and shall remain in full force and effect. Public liability and property damage insurance shall name Grantor, the Management Company and the Association as the insured, with the Association as trustee for the Owners, and shall protect each Owner against liability for acts of the Association in connection with the ownership, operation, maintenance or other use of the Buildings. In the event the entire Project is damaged or destroyed and eighty percent (80%) of the Owners elect not to rebuild the Project, the insurance proceeds will be distributed to the Owners passed on their percentage ownership in the Common Area. In the event that some but not all the Buildings in the Project are damaged or destroyed, eighty percent (80%) of the Owners of each Building in the Project that has been damaged or destroy elect not to rebuild the Project, the insurance proceeds will be distributed to the Owners passed on their percentage ownership in the Common Area. CONDOMINIUM DECLARATION FOR THE CANTAMERE VILLAGE CONDOMINIUMS - 26 If the affected Owners elect not to rebuild the Building in which their Units are located, such Owners shall automatically cease to be Members of the Association and thereafter the Association shall re-allocate the ownership, voting rights and assessment ratio determined in accordance with this Declaration according to the same principles employed in this Declaration at its inception and shall submit such re-allocation to the remaining Owners for approval and amendments of this Declaration as provided in Section 16.1.2 hereof. 13.2 Insurance Proceeds. The Association shall receive the proceeds of any casualty insurance payments received under policies obtained and maintained pursuant to this Section and as provided in Section 14 hereof. 13.3 Owner’s Own Insurance. Notwithstanding the provisions of Section 13.1 hereof, each Owner may obtain insurance at the Owner’s own expense providing coverage upon the Owner’s Condominium, personal property, personal liability, and covering such other risks as the Owner may deem appropriate, but each policy shall provide that it does not diminish the insurance carrier’s coverage for liability arising under insurance policies which the Association obtains pursuant to this Section. All such insurance on the Owner’s Condominium shall waive the insurance company’s right of subrogation against the Association, the other Owners, and the servants, agents and guests of any of them, if such insurance can be obtained in the normal practice without additional premium charge for the waiver of rights of subrogation. SECTION 14 - CASUALTY, DAMAGE OR DESTRUCTION 14.1 Affects Title. Title to each Condominium is hereby made subject to the terms and conditions set forth in this Declaration, as amended from time to time, which bind the Grantor and all subsequent Owners, whether or not it be so expressed in the deed by which any Owner acquires a Condominium. 14.2 Association As Agent. All of the Owners irrevocably constitute and appoint the Association their true and lawful attorney-in-fact in their name, place and stead for the purpose of dealing with their Condominium upon the Condominium’s damage or destruction as hereinafter provided. Acceptance by any grantee of a deed from the Grantor or from any Owner shall constitute such appointment. 14.3 General Authority of Association. As attorney-in-fact, the Association shall have full and complete authorization, right and power to make, execute and deliver any contract, deed, or other instrument with respect to the interest of an Owner which may be necessary or appropriate to exercise the powers herein granted. Repair and reconstruction of the improvements as used in succeeding Sections of this Declaration means restoring the Condominiums, including the site improvements, equipment and facilities therein, to substantially the same condition in which it existed prior to damage, with each Unit and the Common Area having substantially the same vertical and horizontal boundaries as before. The proceeds of any insurance collected shall be available to the Association for the purpose of repair or reconstruction unless eighty percent (80%) of the Owners and all first Mortgagees of the affected Buildings agree not to rebuild in accordance with the provisions set forth hereinafter. CONDOMINIUM DECLARATION FOR THE CANTAMERE VILLAGE CONDOMINIUMS - 27 14.4 Estimate of Costs. As soon as practicable after an event causing damage to, or destruction of, any part of the Project, the Association shall obtain estimates that it deems reliable of the costs of repair or reconstruction of that part of the Project damaged or destroyed, if the Owners and Mortgagees of the Buildings damaged or destroyed elect to rebuild in accordance with Section 14.3. 14.5 Repair or Reconstruction. As soon as practicable after receiving these estimates, the Association shall diligently pursue to completion the repair or construction of that part of the Project damaged or destroyed. The Association may take all necessary or appropriate action to effect repair or reconstruction, as attorney-in-fact for the Owners, and no consent or other action by any Owner shall be necessary in connection therewith. Such repair or reconstruction shall be in accordance with the original plans and specifications of that portion of the Project damaged or destroyed or may be in accordance with any other plans and specifications the Association may approve, provided that in such latter event the number of cubic feet and the number of square feet of any Unit may not vary by more than five percent (5%) from the number of cubic feet and the number of square feet for such Unit as originally constructed pursuant to such original plans and specifications, and the location of the Units shall be substantially the same as prior to damage or destruction. 14.6 Funds for Reconstruction. The proceeds of any insurance collected shall be available to the Association for the purpose of repair or reconstruction. If the proceeds of the insurance are insufficient to pay the estimated or actual cost of such repair or reconstruction, the Association, pursuant to Section 9.7 hereof, may levy in advance a Special Assessment sufficient to provide funds to pay such estimated or actual costs of repair or reconstruction. Such Special Assessments shall be allocated and collected as provided in that Section. Further levies may be made in like manner if the amounts collected prove insufficient to complete the repair or reconstruction. 14.7 Disbursement of Funds for Repair or Reconstruction. The insurance proceeds held by the Association and the amounts received from the assessments provided in Section 14.6 constitute a fund for the payment of costs of repair and reconstruction after casualty. It shall be deemed that the first money disbursed in payment for the cost of repair or reconstruction shall be made from insurance proceeds; if there is a balance after payment of all costs of such repair or reconstruction, such balance shall be distributed to the Owners in proportion to the contributions by each Owner pursuant to the assessments by the Association under Section 14.6 of this Declaration. SECTION 15 - CONDEMNATION 15.1 Consequences of Condemnation. If at any time or times during the continuance of the condominium ownership regime pursuant to this Declaration, all or any part of the Project shall be taken or condemned by any public authority or sold or otherwise disposed of in lieu of or in avoidance thereof, the following provisions of this Section 15 shall apply. 15.2 Proceeds. All compensation, damages or other proceeds therefrom, the sum of which is hereinafter called the “Condemnation Award,” shall be payable to the Association. CONDOMINIUM DECLARATION FOR THE CANTAMERE VILLAGE CONDOMINIUMS - 28 15.3 Complete Taking. In the event that all of the Units are taken or condemned, or sold or otherwise disposed of in lieu of or in avoidance thereof, the condominium ownership regime pursuant hereto shall terminate. The Condemnation Award shall be apportioned among the Owners in the same proportions as their share of the Common Area in the Project, provided that if a standard different from the value of the Condominiums as a whole is employed to measure the Condemnation Award in the negotiation, judicial decree or otherwise, then in determining such shares the same standard shall be employed to the extent it is relevant and applicable. On the basis of the principle set forth in the last preceding paragraph, the Association shall as soon as practicable determine the share of the Condemnation Award to which each Owner is entitled and pay such amounts as soon as practicable. 15.4 Partial Taking. In the event that less than all of the Units are taken or condemned, or sold or otherwise disposed of in lieu of or in avoidance thereof, the condominium ownership regime hereunder shall not terminate. Each Owner shall be entitled to a share of the Condemnation Award to be determined in the following manner: As soon as practicable the Association shall, reasonably and in good faith, allocate the Condemnation Award between compensation, damages or other proceeds and shall apportion the amounts so allocated among the Owners as follows: 15.4.1 Allocation to Common Area. The total amount allocated to taking of or injury to the Common Area shall be apportioned among the Owners in the same proportions as their shares of the Common Area as provided in the Plat; and 15.4.2 Allocation to Condominiums. The total amount allocated to severance damages shall be apportioned to those Condominiums which were taken or condemned as follows: (a) the respective amounts allocated to the taking of or injury to a particular Unit and/or improvements an Owner has made within the Owner’s own Unit shall be apportioned to the particular Unit involved; and (b) the total amount allocated to consequential damages and any other takings or injuries shall be apportioned as the Association determines to be equitable in the circumstances. If an allocation of the Condemnation Award is already established in negotiation, judicial decree, or otherwise, then in allocating the Condemnation Award the Association shall employ such allocation to the extent it is relevant and applicable. 15.5 Reorganization. In the event a partial taking results in the taking of a complete Unit, then, upon the distribution of such Owner’s apportioned proceeds, the Owner thereof automatically shall cease to be a member of the Association. Thereafter the Association shall re- allocate the ownership, voting rights and assessment ratio determined in accordance with this Declaration according to the same principles employed in this Declaration at its inception and shall submit such re-allocation to the remaining Owners for approval and amendment of this Declaration as provided in Section 16.1.2 hereof. 15.6 Reconstruction and Repair. Any reconstruction and repair necessitated by condemnation shall be governed by the procedures specified in Section 14.6 above. CONDOMINIUM DECLARATION FOR THE CANTAMERE VILLAGE CONDOMINIUMS - 29 SECTION 16 - MISCELLANEOUS 16.1 Amendment. 16.1.1 By Grantor. Until the recordation of the first deed to a Condominium, the provisions of this Declaration may be amended, modified, clarified, supplemented, added to or terminated (collectively “Amendment”) by the Grantor by recordation of a written instrument setting forth such Amendment. Additionally, so long as a Grantor owns a Condominium, the provisions of this Declaration may be amended, modified, clarified, supplemented, added to or terminated by a recorded amendment by the Grantor to comply with all applicable law or as necessary to allow the Project to be developed and improved as contemplated in the Condominium Documents. Notwithstanding the foregoing, any material Amendment shall require approval by the vote or written consent of the Members representing sixty-seven percent (67%) or more of the total votes which may be cast by all of the Members and fifty-one percent (51%) of all Mortgagees. A material Amendment shall include amendments to the voting rights of the Members, any increase in a previously assessed amount by more than twenty-five percent (25%), Assessment liens or the priority of Assessments, reductions in any reserves, to the delegated party responsible for maintenance and repairs, any reallocation of ownership interests or right to use Common Area, expansion or contraction of the project, or the addition, annexation, or withdrawal of property to or from the Project; imposition of any restriction on an Owner’s right to sell or transfer his or her Unit; termination of the legal status of the project for any reason; redefinition of any Unit boundaries, the conversion of any Unit into Common Area or vice versa, changes in the fundamental nature of the Project, change in the hazard or fidelity insurance requirements, any leasing restrictions, Section 15, or any provisions that would expressly benefit any Mortgagees, insurers or guarantors. 16.1.2 By Members. Except as provided in Section 16.1.1, after the recordation of the first deed to a Condominium, any Amendment to this Declaration, other than herein provided in this Section 16.1, shall be by an instrument in writing signed and acknowledged by the president and secretary of the Association certifying and attesting that such Amendment has been approved by the vote or written consent of Members representing sixty-seven percent (67%) or more of the total votes which may be cast by all of the Members and fifty-one percent (51%) of all Mortgagees, except where a greater percentage is required by express provision in this Declaration, and such Amendment shall be effective upon its recordation with the Madison County Recorder. Any Amendment to this Section 16.1 shall require the vote or written consent of Owners holding ninety-five percent (95%) of the total votes which may be cast by all of the Members. Notwithstanding the foregoing, nothing in this Section 16.1.2 shall allow an amendment that would limit the rights of the Owners as stated in Sections 7.19 and 8.7. 16.1.3 Effect of Amendment. Any Amendment of this Declaration approved in the manner specified above shall be binding on and effective as to all Owners notwithstanding that such Owners may not have voted for or consented to such Amendment. Such Amendment may add to and increase the Restrictions applicable to the Project but shall not prohibit or CONDOMINIUM DECLARATION FOR THE CANTAMERE VILLAGE CONDOMINIUMS - 30 unreasonably interfere with the allowed uses of such Owner’s Condominium which existed prior to the said amendment. 16.2 Mortgage Protection. Upon written request to the Association from any holder, insurer or guarantor of any first Mortgage, stating both its name, address and the Unit number or address of the Unit on which it has its first Mortgage, said holder, insurer, or guarantor of a first Mortgage encumbering a Unit shall be entitled to notice of the following: Any condemnation or casualty loss that affects either a material portion of a Building or a Unit encumbered by such first Mortgage; Any sixty (60) day delinquency in the payment of Assessments or charges owed by the Owner of any Unit on which it holds a first Mortgage; A lapse, cancellation, or material modification of any insurance policy maintained by the Association; and Any proposed action that requires the consent of a specified percentage of eligible Mortgage holders. 16.3 Enforcement and Non-Waiver. 16.3.1 Right of Enforcement. Except as otherwise provided herein, any Owner, the Association or Grantor shall have the right to enforce any or all of the provisions of this Declaration against any property within a Building and against the Owners thereof. 16.3.2 Non-Waiver. Failure of the Grantor or the Board to insist upon strict compliance with this Declaration, the Bylaws or the Association Rules, or to exercise any right contained in such documents, or to serve any notice or to institute any action, shall not be construed as a waiver or a relinquishment of the right to insist on compliance in the future with any term, covenant, condition or restriction. The receipt by the Board of payment of an assessment from an Owner, with knowledge of a breach by the Owner, shall not be a waiver of the breach. No waiver by the Board of any requirement shall be effective unless expressed in writing and signed for by the Board. 16.4 Registration of Mailing Address. Each Owner shall register such Owner’s mailing address with the Association and all notices or demands intended to be served upon any Owner shall be sent by either registered or certified mail, postage prepaid, addressed in the name of the Owner at such registered mailing address. If an Owner fails to provide the Association with a valid address, all notices shall be sent to that Owner’s address on record with the Madison County Assessor’s office. All notices or demands intended to be served upon the Association shall be given by registered or certified mail, postage prepaid, to the address of the Association as designated in the Bylaws. All notices or demands to be served on Mortgagees pursuant hereto shall be sent by either registered or certified mail, postage prepaid, addressed in the name of the Mortgagee at such address as the Mortgagee may have furnished to the Association in writing. Unless the Mortgagee furnishes the Association such address, the Mortgagee shall not be entitled to receive any of the notices provided for in this Declaration. Any notice referred to in this CONDOMINIUM DECLARATION FOR THE CANTAMERE VILLAGE CONDOMINIUMS - 31 Section shall be deemed given when deposited in the United States mail in the form provided for in this Section. 16.5 Interpretation. The provisions of this Declaration shall be liberally construed to effectuate its purpose of creating a uniform plan for the development and operation of the Project. This Declaration shall be construed and governed under the laws of the State of Idaho. 16.5.1 Restrictions Construed Together. All of the provisions hereof shall be liberally construed together to promote and effectuate the fundamental concepts of the development of the Project as set forth in the recitals to this Declaration. 16.5.2 Restrictions Severable. Notwithstanding the provisions of the foregoing Section 16.5.1, each of the provisions of this Declaration shall be deemed independent and severable, and the invalidity or partial invalidity of any provision or portion thereof shall not affect the validity or enforceability of any other provision herein. 16.5.3 Singular Includes Plural. Unless the context requires a contrary construction, the singular shall include the plural and the plural the singular; and the masculine, feminine or neuter shall each include the masculine, feminine and neuter. 16.5.4 Captions. All captions, titles and the table of contents used in this Declaration are intended solely for convenience of reference and shall not affect that which is set forth in any of the provisions hereof. 16.6 Owner’s Obligations Continue. All obligations of the Owner under and by virtue of the provisions contained in this Declaration shall continue, notwithstanding that such Owner may have leased, rented or entered a contract of sale of his interest as provided herein, but the Owner of a Condominium shall have no obligation for expenses or other obligations accruing after the Owner conveys such Condominium. 16.7 Exhibits. All exhibits attached hereto are incorporated herein as if set forth in full herein. However, in the event of any conflict between such exhibits and the text of this Declaration, this Declaration shall control. 16.8 Acknowledgement and Waivers. All Owners expressly acknowledge that there are no understandings, representations, warranties or promises of any kind that have been made to induce the Owners into owning Units in the Project except as set forth in this Declaration or any other written valid and binding agreement between the Grantor and the Owners, that this Declaration or any other written valid and binding agreement between the Grantor and the Owners sets forth in full the entire agreement between the parties and governing the Project, and the Owners have not relied on any verbal agreement, statement, representation, warranty or other promises that is not expressed in writing in this Declaration or any other written valid and binding agreement between the Grantor and the Owners. Except as may be set forth in any written agreement between Owner and Grantor, each Owner has acquired and accepted its Condominium Unit “as is, where is” with all faults. No person, agent or employee of Grantor has any authority to modify the terms of this Section, and no person on Grantor’s behalf is authorized to make any future verbal agreement upon which any Owner may rely to cancel, change or modify any portion of this Declaration. This Declaration or any other written valid CONDOMINIUM DECLARATION FOR THE CANTAMERE VILLAGE CONDOMINIUMS - 32 and binding agreement between the Grantor and the Owners supersedes any and all prior understandings and agreements. This Declaration or any other written valid and binding agreement between the Grantor and the Owners may be amended or modified only by the terms included herein. 16.9 Transfer of Grantor’s Powers. It is understood that Grantor, at any time in the exercise of its sole discretion, may sell, assign, transfer, encumber or otherwise convey to any person or entity, upon such terms and conditions as Grantor may determine, all of Grantor’s rights, powers, privileges and authority arising hereunder by virtue of Grantor’s capacity as Grantor (which rights, powers, privileges and authority are in addition to those arising from Grantor’s ownership of one or more Units). This Declaration is executed effective this _____ day of _______________, 2019. DECLARANT: Cantamare, LLC By:___________________________________ Kelly McCandless, Managing Member By:__________________________________ Jim Hirrlinger, Managing Member CONDOMINIUM DECLARATION FOR THE CANTAMERE VILLAGE CONDOMINIUMS - 33 STATE OF IDAHO ) ) ss. County of Madison ) On this _____ day of ___________, 2019, before me, a Notary Public, personally appeared Kelly McCandless, known or identified to me (or proved to me on the oath of __________________), to be the manager or a member of Cantamere LLC, the limited liability company that executed the instrument or the person who executed the instrument on behalf of said limited liability company and acknowledged to me that such limited liability company executed the same. IN WITNESS WHEREOF, I have hereunto set my hand and affixed my official seal the day and year in this certificate first above written. NOTARY PUBLIC FOR IDAHO My commission expires: STATE OF IDAHO ) ) ss. County of Madison ) On this _____ day of ____________, 2019, before me, a Notary Public, personally appeared Jim Hirrlinger, known or identified to me (or proved to me on the oath of __________________), to be the manager or a member of Cantamere LLC, the limited liability company that executed the instrument or the person who executed the instrument on behalf of said limited liability company and acknowledged to me that such limited liability company executed the same. IN WITNESS WHEREOF, I have hereunto set my hand and affixed my official seal the day and year in this certificate first above written. NOTARY PUBLIC FOR IDAHO My commission expires: CONDOMINIUM DECLARATION FOR THE CANTAMERE VILLAGE CONDOMINIUMS - 34 EXHIBIT A Property Legal Description CONDOMINIUM DECLARATION FOR THE CANTAMERE VILLAGE CONDOMINIUMS - 35 EXHIBIT B Plat of Cantamere Village Condominiums CONDOMINIUM DECLARATION FOR THE CANTAMERE VILLAGE CONDOMINIUMS - 36 EXHIBIT C Articles of Incorporation of The Cantamere Village Condominiums Owners’ Association, Inc. CONDOMINIUM DECLARATION FOR THE CANTAMERE VILLAGE CONDOMINIUMS - 37 EXHIBIT D Proportionate Interest in Common Area and Voting Allocations Unit Number Percentage of Total Ownership in the Common Area Voting Allocations Total 100% 100