EFTA01073466.pdf

This instrument prepared by and return to: BILL GARRETT, Davidson County Trans:120140051815 DEEDMAST NELSON, MULLINS, RILEY & SCARBOROUGII, LI P Reevd: 07/18/14 09:39 174 pgs 150 4s Avenue North, Suite 1100 Fees 872 00 Taxes:0.00 Nashville, Tennessee 37219 Attn: Kelly L Wonnan 20140718-0063781 [Space above reserved for recorder use only] DECLARATION OF CONDOMINIUM FOR TWELVE TWELVE, A CONDOMINIUM EFTA01073466  Table of Contents ha ARTICLE I DEFINITIONS 3 ARTICLE II NAME 6 ARTICLE III SUBMISSION TO CONDOMINIUM OWNERSHIP AND DESCRIPTION OF CONDOMINIUM 6 Section 3.1 Property Submitted to Condominium Form of Ownership 6 Section 3.2 Submitted Property Subject to Certain Recorded Encumbrances 6 Section 3.3 Description of the Condominium 6 ARTICLE IV RESTRAINT UPON SEPARATION AND PARTITION OF COMMON ELEMENTS AND LIMITED COMMON ELEMENTS 17 ARTICLE V OWNERSHIP OF COMMON ELEMENTS AND COMMON SURPLUS; SHARE OF COMMON EXPENSES; VOTING RIGHTS 17 Section 5.1 Ownership Shares 17 Section 5.2 Acceptance 17 Section 5.3 Voting Rights 17 Section 5.4 Common Expense and Common Surplus 18 ARTICLE VI MEllIOD OF AMENDMENT OF DECLARATION 18 Section 6.1 Amendment to Condominium Documents and Condominium Plat by Developer 18 Section 6.2 Amendment By Unit Owners 18 Section 6.3 Special Amendment 19 Section 6.4 Limitation 19 Section 6.5 Procedure 19 ARTICLE VII ASSOCIATION 19 Section 7.1 Powers 19 Section 7.2 Membership 20 Section 7.3 Management By Board ofDirectors 19 Section 7.4 Shares Nontransferable 20 Section 7.5 Binding Effect 20 Section 7.6 Conflict Rules 20 Section 7.7 Non-Liability 20 Section 7.8 Other Provisions Relating to the Association. 20 ARTICLE VIII BYLAWS 21 ARTICLE IX ASSESSMENTS AND OTHER CHARGES 21 Section 9.1 Power to Fix and Determine Assessments 21 ARTICLE X PROVISIONS RELATING TO THE SALE OR RENTAL OF UNITS 26 Section 10.1 Leasing 26 Section 10.2 Re-Sale ofUnits. 30 ARTICLE XI INSURANCE, RESTORATION OF IMPROVEMENTS AND EMINENT DOMAIN 31 Section 11.1 Insurance 31 ARTICLE XII EMINENT DOMAIN 36 Section 12.1 Deposit of Certain Condemnation Awards with Insurance Trustee 36 Section 12.2 Determination Whether to Continue Condominium 36 Section 12.3 Disbursement ofFunds 36 Section 12.4 Condemnation of Common Elements 36 Section 12.5 Condemnation of a Unit 37 ARTICLE XIII ARCHITECTURAL CONTROLS 37 Section 13.1 During Developer Control 37 Section 13.2 After Developer Control 37 Section 13.3 Alteration of Units 38 ARTICLE XIV USE AND OCCUPANCY 40 Section 14.1 Residential Use 41 Section 14.2 Commercial Unit(s) 45 ARTICLE XV MAINTENANCE AND ALTERATIONS 51 EFTA01073467  Table of Contents (continued) Pus Section 15.1 Maintenance and Repairs 51 Section 15.2 Alterations and Improvements 52 ARTICLE XVI TERMINATION 54 ARTICLE XVII MANAGEMENT AGREEMENT 54 Section 17.1 Purposes of the Management Agreement 54 Section 17.2 Related Parties Not Improper 54 Section 17.3 Ratification 54 ARTICLE XVIII DISCLAIMER OF CERTAIN WARRANTIES 55 Section 18.1 Warranties Disclaimed 55 Section 18.2 Certain Particular Conditions Not Warranted 55 ARTICLE XIX ADDITIONAL RIGHTS OF ELIGIBLE MORTGAGE HOLDERS AND OTHER PARTIES 55 Section 19.1 Information to Eligible Mortgage Holders 55 Section 19.2 Additional Rights of Eligible Mortgage Holders 55 Section 19.3 Rights of Eligible Mortgage Holders in Respect of Insurance Proceeds 56 Section 19.4 Consent of Eligible Mortgagees Required for Certain Material Changes 56 Section 19.5 Notice to First Mortgagees Upon Damage, Be 57 Section 19.6 Mortgagee's Rights Confirmed 57 Section 19.7 Deemed Approval by First Mortgagee 58 ARTICLE XX MISCELLANEOUS PROVISIONS 58 Section 20.1 Binding Effect 58 Section 20.2 Non-Ownership of Certain Facilities 58 Section 20.3 Covenants Running With the Submitted Property 58 Section 20.4 Severability 58 Section 20.5 Notices 58 Section 20.6 Certain Additional Rights of Developer 58 Section 20.7 Gender, Number 59 Section 20.8 Captions 59 Section 20.9 Relation of Declaration to Condominium Act 59 Section 20.10 SECURITY 59 Section 20.11 Dispute Resolution 58 Section 20.12 Utility Services to Building 64 Section 20.13 Administrative Fines 64 Section 20.14 Statement of Easements Serving or Burdening any Portion of the Condominium 64 ii EFTA01073468  DECLARATION OF CONDOMINIUM FOR TWELVE TWELVE, A CONDOMINIUM THIS DECLARATION OF CONDOMINIUM is made by Laurel Property, LW, a Delaware limited liability company ("Developer"), for itself and its successors, grantees and assigns. W ITNESSETII: WHEREAS, Developer is the owner in fee simple of real property and certain improvements, lying and situate in Nashville, Davidson County, Tennessee, as more particularly set forth in Exhibit "A" attached hereto (the "Submitted Property"), subject to the reservations, restrictions, and easements of record or reserved herein, which property will consist of the easements, improvements and fixtures located on the Submitted Property, described in this Declaration, consisting in part of that certain twenty three (23) story building developed by Developer, all as more particularly described below; and, WHEREAS, Developer has developed two hundred eighty six (286) residential condominium units and certain commercial condominium units and related facilities within the Submitted Property; and, WHEREAS, Developer desires to submit the Submitted Property, related improvements and facilities, and certain additional real property, as expressly described in this Declaration, to condominium ownership pursuant to T.C.A. § 66-27-201 culat, as such statute exists on the date this Declaration is recorded in the Register of Deeds Office for Davidson County, Tennessee. NOW, THEREFORE, the Developer makes the following declarations: ARTICLE I DEFINITIONS Section 1.1 As used in this Declaration and the exhibits hereto, and any amendments thereof, unless the context otherwise requires, the following definitions shall prevail: "Assessment" means a share of the funds required for the payment of Common Expenses which, from time to time, are assessed against each Condominium Unit and the Unit Owner by the Association, and includes the terms "General Assessments," "Special Assessments," "Capital Improvement Assessments," and "Limited Common Element Assessments," as such temis arc defined in Article IX of this Declaration. "Association" means Twelve Twelve Condominium Association, Inc., a Tennessee not-for-profit corporation, the sole entity responsible for the management and operation of the Condominium, including the Common Elements thereof, its successors and assigns. "Board ofDirectors" or "Board" means the Board ofDirectors of the Association. "Building" shall mean that certain twenty three (23) story building having an address of 1212 Laurel Street, Nashville, Tennessee, 37203, which comprises a portion of the Condominium and is depicted on the Condominium Nat. "Bylaws" means the Bylaws of the Association, as amended from time to time, being more particularly described in Article VII and VIII of this Declaration. A copy of the Bylaws as initially adopted by the Board of Directors of the Association is attached hereto as Exhibit "C" and made a part hereof. 3 EFTA01073469 "Charter" means the Charter of the Association, as the same may be amended from time to time, being more particularly described in Article VII of this Declaration. A copy of the Charter as initially filed with the Secretary of State of Tennessee is attached as Exhibit "C" hereto and made a part hereof. "Commercial Unit(s)" means any space shown on the Condominium Plat marked as "Commercial" or "Retail" which may be further identified by a number to distinguish one Commercial Unit from another. "Common Elements" means the portions of the Condominium Property that are rua included within the Units and any other items designated in this Declaration as constituting Common Elements, including those designated as such in Article Ill, Section 3.3(F) below, including, without limitation, those items defined as "Common Elements" in the Condominium Act. "Common Expenses" means all expenses incurred by the Association to accomplish its duties as contemplated by this Declaration and the Condominium Act or as designated as a Common Expense pursuant to this Declaration. The Common Expenses shall be assessed against Units in the Condominium by the Association as authorized by the Condominium Act. For purposes of this Declaration, "Common Expenses" shall also include all reserves required by the Condominium Act or authorized and established by the Association, regardless of when such reserved funds were expended. "Common Surplus" means the excess of all receipts of the Association from this Condominium, including, but not limited to, assessments, rents, profits and revenue on account of the Common Elements, over and above the amount of Common Expenses of this Condominium. "Condominium" means Twelve Twelve, A Condominium, which has been submitted to the form of ownership of property under which units arc subject to ownership by one or more owners, and appurtenant to each Unit is an undivided interest in the common elements, all pursuant to the provision of the Condominium Act. "Condominium Act" or "Act" means and refers to the Tennessee Condominium Act of 2008, being T.C.A. Section 66-27-201, et seqs, as amended from time to time. "Condominium Documents" means this Declaration, and all exhibits annexed hereto, as the same may be amended from time to time. The term "Condominium Documents" also may mean, where applicable, rules and regulations and other documents required pursuant to the Condominium Act es applicable to this Condominium unless the context otherwise requires, and notwithstanding that some or all of such documents or items may or may not be exhibits to the Declaration and/or recorded in the public records ofDavidson County, Tennessee. "Condominium Parcel" or "Parcel" means a Unit, together with the undivided share in the Common Elements which is appurtenant to the Unit. "Condominium Plat" means the Condominium Plat of Twelve Twelve, A Condominium, attached hereto as Exhibit :.11! and made a part hereof, recorded in the Register of Deeds Office for Davidson County, Tennessee, pursuant to the Condominium Act, with the recording of this document and constituting a part of this Declaration, as the same may be amended or otherwise modified or revised from time to time and recorded as provided for by the Condominium Act. l'he term "Plat" as used in this Declaration refers only to such plat and not to any subdivision plat under applicable Davidson County ordinances of which the Property may be a part from time to time. "Condominium Property" or "Property" means and includes the improvements, easements and all other property interests that are expressly subjected to condominium ownership pursuant to the terms of this Declaration. "Condominium Unit" or "Unit" means each of the separate and identified units that are delineated in the Condominium Plat attached to this Declaration as Exhibit "R" and which are capable of exclusive ownership as contemplated by the Condominium Act. The physical boundaries of each Unit are as more particularly described in Article III of this Declaration. 4 EFTA01073470 "Declaration" means this instrument, as it may be amended from time to time. "Developer" means Laurel Property, LLC, a Delaware limited liability company, and its successors and assigns, but does not include an owner or lessee of a Condominium Unit who has acquired his or her own Unit for his or her own occupancy or investment. "Developer Control Period" means the time period in which Developer has the right to appoint directors and officers of the Association, which period shall terminate no later than the earlier of(A) one hundred twenty (120) days after conveyance of seventy five percent (75%) of the Units to Unit Owners other than Developer, (B) seven (7) years after the first conveyance of a Unit to a Unit Owner other than Developer, or (C) Developer's written surrender of its authority to appoint or remove officers and directors of the Association. "Eligible Mortgage Holder" means the holder, insurer or guarantor of a first deed of trust on a Unit that has been duly recorded in the Register of Deeds Office for Davidson County, Tennessee, which has submitted a written request to the Association for notice with respect to any action that, pursuant to the terms of this Declaration, requires the consent of a specified percentage ofEligible Mortgage I folders, and provides to the Association in such notice its name and address, and the Unit number or address of the Unit on which the Eligible Mortgage Holder holds, insures or guarantees the first mortgage. "Graphic Depiction" means the graphic depiction of the improvements located on the Submitted Property, as provided in Section 3.3(A) of this Declaration. "Guest Suites" shall mean the areas located on the fifth floor of the building, shown as numbers 503 and 508 on the Condominium Plat. "Institutional Mortgagee" means a bank, state or federal savings and loan association, institutional investor, the Federal National Mortgage Association (FNMA), Federal Home Loan Mortgage Corporation (FIII.MC), federal or state agency, credit union, real estate investment trust, insurance company or pension fund authorized to do business in the United States of America, an agency of the United States government, a mortgage investment trust, or a lender generally recognized in the community as an institutional type lender, in any case holding a deed of trust on one or more Condominium Units or all or pan of the Condominium Property and the successors or assigns ofsuch entities. "Laws" means all laws, statutes, ordinances, codes, regulations, and decrees (judicial or administrative), of all federal, state, or local governmental authorities, tribunals, or agencies. "Limited Common Elements" means and includes those Common Elements that are reserved for the use of a certain Unit or Units to the exclusion of all other Units, as described in the Condominium Documents, including without limitation the descriptions of the Limited Common Elements set forth in Article Ill, Section 3.3(G) of this Declaration. "Lot I" means Lot I, as shown on the plat of record in Instrument No. 20120216-0013756, in the Register's Office for Davidson County, Tennessee. "Management Agreement" means and refers to that certain agreement, if any, with the Management Firm for the operation and administration of the Condominium and the management of the Condominium Property, as the same may be amended and/or replaced from time to time. "Management Firm" means and refers to the then-current firm engaged to provide management services to the Condominium Property and the Common Elements pursuant to the Management Agreement. "Occupant" means any person or persons, other than the Unit Owner, in possession of a Unit from time to time, including tenants and lessees of a Unit Owner. 5 EFTA01073471 "Parking Area" means that certain parking area that is a part of the Condominium Property. The Parking Area contains parking spaces assigned to and available for use by Unit Owners, subject to the provisions of this Declaration and as shown on the Condominium Plat. "Penthouse Units" means those Residential Units located on the twenty third (23"/) floor of the Building, as depicted on the Condominium Plat. "Person" means an individual, corporation, firm, association, partnership, limited liability company, trust or other legal entity. "Residential Unit" means all Units except for any Commercial Unit as defined above. "Unit" means that part of the Condominium Property which is subject to exclusive ownership and consists of improvements as described in Article III herein below. "Unit Owner," "Owner of a Unit" or "Parcel Owner" means the record titleholder of a Unit within the Condominium but shall not include a Person who is only a the holder of a deed of trust. "Utility" or "Utilities" means all public and private utilities of every kind that either arc or may hereafter be Ibrnished or fumishable to the Condominium Property, including without limitation potable water, wastewater, irrigation or graywater, electricity, gas, telephone (including voice or data transmission utilities), wastewater and stonnwater drainage, cable television and/or installation of a master television antenna system, lighting and illumination, transportation, and other systems, and includes all facilities necessary or desirable for the transmission, handling or provision of any such Utility or Utilities, including pipes, wires, conduits, cables, lines, wires, panels, boxes, switching equipment, control equipment and structures, and related facilities and equipment of every kind. Unless the context otherwise requires, all other terms used in this Declaration shall he assumed to have the meaning attributed to such term by the applicable definitional section of the Condominium Act as of the date this Declaration is recorded. ARTICLE U NAME The name by which this Condominium is to be identified is Tveelve Twelve, A Condominium. ARTICLE lu SUBMISSION TO CONDOMINIUM OWNERSHIP AND DESCRIPTION OF CONDOMINIUM Section 3.1 Property Submitted to Condominium Form of Ownership. Developer hereby submits the real estate, easements and rights described in Exhibit "A" attached hereto and made a part hereof, together with all improvements thereon, to the condominium form of ownership and use, in the manner provided for in the Condominium Act as it exists on the date of recordation hereof. Section 3.2 Submitted Propertv Subiect to Certain Recorded Encumbrances. The Submitted Property is subject to all casements, reservations, limitations, prohibitions, dedications, and restrictions of record. Section 3.3 Description of the Condominium. The Condominium shall consist of two hundred eighty six (286) Residential Units and one (I) Commercial Unit (as hereinafter described). A. The Condominium Plat of the Submitted Property, a graphic depiction of the improvements located thereon (including the Units and the Building in which they arc located) (the `Graphic Depiction"), and a plot plan and floor plans showing the improvements thereon and identifying 6 EFTA01073472 each Unit, the Common Elements, and the Limited Common Elements, their relative locations and approximate dimensions, are attached hereto as Exhibit "B." Developer is hereby authorized to make such changes in the plans and specifications of all improvements to the Condominium as Developer may deem necessary or desirable; provided, however, that such changes do not conflict with the Condominium Act. B. The Graphic Depiction and the Condominium Plat, together with this Declaration, are sufficient in detail to identify Units, Common Elements, and Limited Common Elements and their relative location and dimensions. C. The Condominium is a mixed use, commercial and multi-family residential condominium that exists on the Submitted Property. D. Tvoes of Unita. The Units shall be known and numbered as described in Exhibit "B." The Condominium contains the following Unit types, identified below: (I) Renter Residential Unita. Two hundred seventy nine (279) in number, located as shown on the Condominium Plat. (2) penthouse I Kit Seven (7) in number, located as shown on the Condominium Plat. (3) Commercial Units. One (I) in number, located as shown on the Condominium Plat. Units and Unit Boundarit. The term "Unit" or "Units" as the case may be, shall mean and include the Units which arc designated in Exhibit "B" to this Declaration. Each Unit shall include that pail of the Building containing the Unit that lies within the following boundaries: (1) I inner and lower Boundaries. The upper and lower boundaries of the Unit shall be the following boundaries extended to their planar intersections with the perimetrical boundaries: (i) 'Loner Boundadea. The horizontal plane of the lowest surface of the unfinished ceiling slab. In a Unit containing a room in which the ceiling is raised above the level of the ceiling in the rest of the Unit, the ceiling slab shall include the vertical slab or wall connecting the raised ceiling with the ceiling of the remaining portion of the Unit, and the upper boundary shall include the plane of the unfinished surface of the vertical slab or wall of the raised ceiling that joins the planes of the lowest surfaces of the unfinished horizontal portions of the ceiling slabs. (ii) Lower Boundaries. The plane of the lowest surfaces of the unfinished floor slab. In a Unit containing a room in which the floor is raised above the level of the floor in the rest of the Unit, the floor slab shall include the vertical slab or wall connecting the raised floor with the floor of the remaining portion of the Unit, and lower boundary shall include the plane of the unfinished surface of the vertical slab or wall that joins the planes of the lowest surfaces of the unfinished horizontal portions of the floor slabs. 5tainvellg. Any stairwells within the boundaries of a Unit, as set forth above, or which connect the upper and lower floors of Loft Units shall be a part of the Unit. (iv) fixtures. Mechanical Systems. Etc. All fixtures, mechanical systems and equipment installed for the sole and exclusive use of the Unit shall be deemed a part of the Unit. EFTA01073473  (v) Interior Divisions of Living Space. All spaces, walls, interior partitions, stairways, fixtures and other improvements within the boundaries of a Unit as described above are a part of such Unit. Nonstructural interior walls shall not be considered a boundary of the Unit. All interior doors adjacent to interior hall ways shall be deemed a part of the Unit. (2) Perimetrical Boundaries. The perimetrical boundaries of the Unit shall be the vertical planes of the unfinished interior surfaces of the exterior walls bounding the Unit (as extended adjacent to the innermost surfaces of the exterior windows and their frames), extended to their planar intersections with each other and with the upper and lower boundaries, including all surfaces of the exterior windows (and their frames), but excluding therefrom exterior vents and other adjacent structural elements. (3) Special Unit Considerations. (i) The Unit shall not be deemed to include pipes, wires, conduits, or other public or private Utility lines running through the respective Units which are utilized for or serve more than one Unit, which items arc hereby made a part of the Common Elements of the Condominium. (ii) All exterior windows (and their window frames) arc hereby declared to be a part of the Unit to which they are appurtenant; provided, however, that any maintenance of exterior windows, as well as repair of broken glass or window frames from time to time, shall be performed by the Association in a uniform and attractive manner, at the sole expense of the Unit Owner, which expense the Unit Owner shall pay promptly to the Association upon receipt ofa statement for any such repairs. (iii) In connection with the design and construction of each Unit and the Condominium, each Unit Owner, by acceptance of a deed conveying title to a Unit in the Condominium, shall be deemed to have agreed as follows: I) No modification, decoration or customization of the Unit by any Unit Owner shall involve any core drilling or penetration of the floor of the Unit, nor any alteration of the Common Elements of the Condominium, unless expressly authorized, in writing, in the manner provided in this Declaration. 2) To the fullest extent permitted by Tennessee law, Developer makes no warranty with respect to cosmetic conditions affecting the Building or any Unit, unless the cosmetic conditions resulted from a defect in an element warranted under applicable Tennessee law. "Cosmetic conditions" means aesthetic imperfections that do not affect the working condition or functionality of an item or improvement within a Unit, including discoloration of floor coverings, wall papers, or window treatments; or minor scratches, cracks, chips, dents, scrapes and caulking imperfections in walls, flooring material, tile, fixtures or mirrors. F. Common Elements. The Common Elements shall consist of the following: (I) The Submitted Property (other than the Units); (2) All parts of the Condominium that are not included in the Units; (3) Easements through Condominium Units for conduits, pipes, ducts, vents, plumbing, wiring and other facilities, equipment and/or fixtures for the furnishing of Utility EFTA01073474 services, heating and cooling and/or ventilation to the Units and to the Common Elements or the Building; (4) Easements of support in every portion of a Unit that contributes to the support of any other Unit or to the Building; (5) Cross•easements for ingress, egress, support, maintenance, repair, replacement and Utilities; (6) Easements for encroachments by the perimeter walls, ceilings and floors surrounding each Condominium Unit caused by the settlement or movement of the Building or by minor inaccuracies in building or rebuilding which may now exist or hereafter exist, and such easements shall continue until such encroachments no longer exist; (7) Installations for the furnishing of Utility services to more than one Unit or to the Common Elements; (8) Certain elevators, elevator shafts, elevator lobbies, trash chutes, and stairwells, all as shown on the Graphic Depiction and Condominium Plat attached hereto as fixhibit "B." specifically excepting from the Common Elements those stairwells that are located within the boundaries of a Unit, if applicable; (9) All walkways that arc a part of the Condominium Property; (10) All fixtures on property owned or held for the common use, benefit and enjoyment of all Unit Owners in the Condominium; and (I I) Certain utility infrastructures, paving, retaining walls, the foundation, roof, exterior walls of the Building, balconies, terraces, landscape areas, parking areas and lighting for same, heat exchanges for chilled water booster pumps, driveway areas, mail room, hallways, lobby, shafts, elevator, elevator shafts, elevator machine room, valve room, emergency generator room, electrical rooms, main communications room, mechanical rooms, maintenance room, control room, dumpster, trash chutes, compactor/dumpster trash room, water meter room, concierge desk, fitness room, swimming pool, swimming pool equipment room, club room, limited access gated entry system, loading docks, and all lighting in any Common Elements. Notwithstanding any provision of this Declaration to the contrary, Unit Owners shall not do anything within their Units or on the Common Elements that would adversely affect the safety or soundness of the Common Elements or any portion of the Condominium, or the Building. G. Limited Common Elements. (I) Description of Limited Common Elements. The Limited Common Elements shall consist of those portions of the Common Elements that are reserved for the use of certain Unit Owners or a certain Unit Owner, to the exclusion of other Unit Owners, and which arc either designated as Limited Common Elements on the materials depicting the Condominium in Exhibit U attached hereto or arc othenvise identified as Limited Common Elements in this Declaration. Such Limited Common Elements shall include, without limitation, the following items: (i) The perpetual, exclusive easement to use the area of the exterior windows and doors adjacent to each Unit, and as more particularly described in the Graphic Depiction and Condominium Plat attached hereto as Exhibit "13" which easement shall be limited to the Owner of the Unit to which such windows and doors are attached; EFTA01073475  (ii) The mailbox assigned to a particular Unit, to be initially assigned in the sole discretion ofDeveloper, that is located within the Condominium; provided, however, that the mailbox shall not be replaced, altered or changed in any manner except in accordance with the color, style, design and quality of mailbox required by the Rules and Regulations of the Association; (iii) Light and electrical fixtures outside the Unit or attached to the exterior wall of the Unit and which solely serve such Unit. (iv) The hallways, elevator lobbies, and service elevator vestibules on commercial and residential floors, as more specifically shown on the Plat, are assigned as Limited Common Elements to the Residential Units or Commercial Units located on the floor upon which such hallways, elevator lobbies, and vestibules are located; (v) The owner's lounge, fitness room, swimming pool, swimming pool terrace, swimming pool mechanical room, club room, and all related amenities located on the first and fifth floors of the Building arc assigned as Limited Common Elements to the Residential Units; (vi) The ground floor residential lobby and elevators, including the related elevator shells and equipment, exclusively serving the Residential Units are assigned as Limited Common Elements to the Residential Units; (vii) The portion of the Common Elements on which there is located any portion of the air conditioning or heating system exclusively serving a particular Unit or Units is assigned as a Limited Common Element to the Unit or Units so served; (viii) Any utility meter which serves only one (I) Unit is assigned as a Limited Common Element to the Unit so served; (ix) A Unit may be assigned one (I) or more storage spaces, which arc assigned in Exhibit "D" attached hereto and incorporated herein by this reference and shown on the Plat as a Limited Common Element assigned to the Unit. Storage spaces may be initially allocated or reallocated by amendment to this Declaration as provided in subparagraphs (2) and (3) below. In accordance with § 66-27-305(aX6) of the Act, all such storage spaces may be allocated or reallocated as Limited Common Elements. (x) A Unit may be assigned one (l) or more parking spaces, which are assigned in Exhibit "E" attached hereto and incorporated herein by reference and shown on the Mat as a Limited Common Element assigned to the Unit. Parking spaces may be initially allocated or reallocated by amendment to this Declaration as provided in subparagraphs (2) and (3) below. In accordance with § 66-27-305(aX6) of the Act, all such parking spaces may be allocated or reallocated as Limited Common Elements. (xi) A balcony or a terrace attached to and exclusively serving a Unit, as more specifically shown on the Plat, is assigned as a Limited Common Element to the Unit so served. (2) The Association's Board of Directors, without need for a membership vote, is hereby authorized to allocate and reallocate Limited Common Elements and Common Elements not previously assigned, provided that any such allocation or reallocation shall be made in accordance with the Condominium Act. A Common Element not previously allocated as a Limited Common Element may be so allocated and a Limited Common Element may be reallocated by the Board, without the need for a vote of the Association, upon written application to the Association by the Owner or Owners for whose exclusive use such Common Element is 10 EFTA01073476  requested or whose use of the Limited Common Element previously allocated is directly affected. Upon such application, the Board shall prepare and execute an amendment to the Declaration allocating the Common Element as a Limited Common Element or reallocating the Limited Common Element, which amendment shall be executed by the Owner or Owners making such application. For so long as Developer owns a Unit primarily for the purpose of sale, an amendment to allocate or reallocate a Common Element not previously allocated as a Limited Common Element shall be executed by the officers of the Association, if the request is made by Developer. The Board has the right to approve or disapprove any such request made by any Person other than Developer. (3) For so long as Developer owns any Unit primarily for the purpose of sale, Developer shall have the right to allocate to Owners one (I) or more parking spaces and storage spaces to be allocated as Limited Common Elements pursuant to subparagraphs (ix) and (x) above. The proceeds of the allocation of parking spaces and storage spaces as Limited Common Elements shall belong to Developer. The use and enjoyment of the Limited Common Elements shall be in accordance with the terms and provisions of this Declaration, the Articles, the Bylaws and any rules and regulations promulgated by the Association from time to time. (4) ,Resoonsibilities of Unit Owners. Subject to the provisions of Section 3.3 G(I) above, any maintenance, repair or replacement relating to Limited Common Elements shall be performed by the Owner of the Unit to which appurtenant, at such Unit Owner's sole cost and expense, unless the contrary is expressly provided by this Declaration. Additionally: (i) Each Unit Owner shall also be responsible for replacing the necessary light bulbs for the foregoing light fixtures with the same color and bulb wattage as initially installed by Developer, or as otherwise approved by the Association. (ii) Each Unit Owner shalt be solely responsible for maintaining all portions of the Unit intrusion system serving the Unit alone, including without limitation, all electrical lines and other facilities. (iii) In addition to any other rights of the Association set forth in this Declaration, should any maintenance, repair or replacement of a portion of the Limited Common Elements be necessary or desirable from time to time, then the Association shall have the right to perform the same for the account of the Unit Owner. In such event, the Association shall have the right to a lien upon the Unit on the same basis as a lien for assessments as set forth in this Declaration, to secure payment of all sums expended, together with interest thereon at the highest lawful rate costs and attorneys fees. The Association shall also have the right to direct the levy of an administrative fine against the Owner of the Unit, but only to the extent permitted by Section 20.13 below. (5) The Guest Suites may be licensed by the Association (and by Developer during the Developer Control Period), and shall be deemed to be Limited Common Elements appurtenant to the Residential Units, notwithstanding any designation of such areas as "Units" on the Condominium Plat. H. nsurance. Each Unit Owner shall be solely responsible for insuring any and all equipment, machinery, fixtures, furniture or other personal property installed or placed upon or within the Limited Common Elements appurtenant to the Unit by or at the request of the Unit Owner, as well as any other improvements located within such Limited Common Elements by or at the request of the Unit Owner, and the Association shall not have any duty or obligation to do so. Notwithstanding anything contained in the foregoing to the contrary, the Association shall have the sole obligation of maintaining adequate insurance to protect the Association and the Common Elements required to be insured by the Association pursuant to the terms of this Declaration or by law. II EFTA01073477  I. Egymenil. In addition to any other easements created under the Condominium Act or the terms of this Declaration, the following easements are expressly created, granted and reserved: (I) services and I tilitlrt. Non-exclusive easements arc hereby reserved unto the Developer, its successors and assigns, and also granted to the respective Utility providers from time to time, on, over, under, across and through the Common Elements and Limited Common Elements of the Condominium, to such extent as may be required for the provision of services and Utilities to all of the Condominium Property and the Building (whether or not included in the Condominium), including, but not limited to, all Utility services (whether public or private), the complete operation of any services or facilities which may be provided by the Developer or the Association, their respective successors or assigns, or any public or private Utility company to serve the Condominium or the Building. The reservation and grant of easement includes (i) easements over, under, across and through Units for conduits, ducts, plumbing, wiring and other facilities for the furnishing of Utility and other services to the Units, Common Elements and Limited Common Elements, and (ii) the right to construct or install all necessary facilities or equipment upon the Condominium Property and to enter thereon to maintain, repair, service, replace, or enlarge the same. A Unit Owner shall do nothing within or outside his Unit that interferes with or impairs, or may interfere with or impair, the provision of any Utility, or other service facilities or the use of these easements. The Association has the irrevocable right to access of each Unit during reasonable hours, when necessary, to maintain, repair or replace those items and areas, as detailed in this Declaration or as contemplated hereunder, for which the Association is responsible, and to remove any improvements interfering with or impairing such facilities or easements herein reserved, pursuant to the Declaration or as necessary to prevent damage to the Common Elements or to a Unit or Units. (2) _Encroachments. In the event that any permitted improvements within a Unit, or any portion of the Common Elements or Limited Common Elements shall encroach upon any other Unit, or the Common Elements or Limited Common Elements for any reason except the intentional or negligent act of the Unit Owner, then an casement shall exist to the extent of such encroachment so long as the same shall exist. The foregoing easement for encroachments shall include, without limitation, any encroachment occurring by reason of construction or reconstruction of improvements after casualty or condemnation, settling or shifting of any improvements, any addition, alteration or repair to the Common Elements or Limited Common Elements made with the consent of the Association. Any such easement for encroachments shall also include an easement for the maintenance and use of encroaching improvements in favor of the Unit Owners, their sucrnsors and assigns. (3) Suwon. An easement of support in favor of all Unit Owners, their successors and assigns, shall burden every portion of a Unit contributing to the support of the Building or an adjacent Condominium Unit, Common Elements or Limited Common Elements. (4) Ingftgssoftligoas. A non-exclusive perpetual easement shall exist, in favor of each Unit Owner and Occupant, their families, guests and invitees, for pedestrian traffic over, through and across the Common Elements intended for such purposes from time to time; provided, however, that under no circumstances shall any pedestrian traffic be allowed over or through any Unit (except for pedestrian traffic by the Unit Owner and such Unit Owner's family and invitees). A non-exclusive casement shall exist in favor of each Unit Owner and Occupant, their families, guests and invitees, for purposes of vehicular and pedestrian across (but not cross-parking) on, over and across the drive aisles located in the Parking Area, in order to access the parking spaces that have been assigned to the Unit Owner as provided in Section 3.3(G) above. (5) Drainage. An easement shall exist over, under and through the Condominium Pro