Master Deed Declaration of Condominium
Agreement made on the ___ day of __________, 20___, between ______________ of
____________________________ (street address, city, county, state, zip code) , and _________,
a corporation organized and existing under the laws of the state of ______________, with its
principal office located at _________________________ (street address, city, county, state, zip
code) , said ____________ and ________________, being hereafter referred to jointly as the
Developers .
Whereas, Developers are the owner in fee simple of the land with the improvements on it
located at ____________________________ (street address, city, county, state, zip code) (the
Property ), being more particularly bounded and described as follows: ____________________
____________________________________________________________________________
(legal description of property); and
Whereas, they as Owners propose to create a condominium governed by and subject to
the provisions of _______________________________ (identify condominium statutes of state
where property is located), hereinafter referred to as State Statutes, on the above described
Propert y and that the Property above described from and after the date of the recording of this
Declaration in the __________________________________ (County official’s name and office
where Deeds are recorded), shall be and continue subject to each and all of the terms of this
Declaration and Statutes of until this Declaration is terminated or abandoned in accordance with
the provisions elsewhere contained in this Declaration.
Now, therefore, Developers do now declare the following on behalf of themselves, their
heirs, executors, administrators, successors, and assigns to their grantees and their respective
heirs, successors, assigns, executors, and administrators as well as to any and all persons having,
acquiring, or seeking to have or acquire any interest of any nature whatsoever in and to any part
of the Property:
I. Definitions As used in this Declaration or elsewhere in the Condominium Documents, unless
otherwise provided, or unless the context requires otherwise, the following terms shall be defined
as follows: A. UnitAny one of those parts of the Building which is separately described on
Architect's Plans as Unit followed by a number.
B. Unit Owner
The person, persons, or entity holding title in fee simple to a unit.
C. Assessment That portion of the cost of maintaining, repairing, and managing the Property
which is to be paid by each Unit Owner, which respective portions, except as specifically
otherwise provided in this Declaration, are set forth in Article XVI, Paragraph A of
this Declaration.
D. AssociationThe ______________________ , a corporation organized and existing under the
laws of the state of ______________, with its principal office located at _______________________ (street address, city, county, state, zip code) , copies of the
Bylaws of which corporation and of its Rules and Regulations are attached to and made
a part of this Declaration as Exhibits A and B respectively.
E. Building
The entire structure to be located on the Property which will be built substantially
in accordance with the plans and specifications prepared by _________________ (name
of architect).
F. Common Elements The common areas and facilities and all that part of the Property which is not
within the Units as such Units are shown on the Architect's Plans or which exists within
Units by virtue of an easement created in this Declaration.
G. Common Expenses
The actual and estimated costs of:
i. Maintenance, management, operation, repair, and replacement of the Common
Elements and those parts of the Units as to which, pursuant to other provisions of
this Declaration, it is the responsibility of the Association to maintain, repair and
replace;
ii. Management and administration of the Association, including, but not limited
to, compensation paid by the Association to a managing agent, accountants,
attorneys, and other employees; and
iii. Any other items held by or in accordance with other provisions of this
Declaration or the Condominium Documents to be Common Expenses.
H. Common Surplus
The excess of all receipts of the Association including but not limited to
assessments, rents, profits, and revenues on account of the common elements, over the
amount of common expenses.
I. Condominium Documents This Declaration and the Exhibits attached hereto as the same from time to time
may be amended. The exhibits are as follows:
Architect's Plans (Exhibit C)
A set of floor plans of the Building, showing the layout, location, unit numbers,
and dimensions of the units, entitled _______________ (title of plans) and bearing the
verified statement of (name of architect) certifying that the plans fully and accurately
depict the layout, location, unit number, and dimensions of the units as built.
i. Bylaws of ______________________ (Exhibit A)
ii. Rules and Regulations of the Association (Exhibit B)
J. Developers _______________ and ______________, their heirs, executors, administrators,
successors, and assigns.
K. Person
Developer and any individual, firm, corporation, trustee, or other entity capable of
holding title to real property.
L. Plans and Specifications
The plans and specifications referred to in Paragraph E of this Article I of this
Declaration.
M. Property The property defined and described above in the opening paragraph of this
Declaration.
N. Share The percentages attributed to each Unit as set forth in Article VI of this
Declaration.
II. Condominium Name The name of this condominium is ___________________.
III. Name of Organization of Unit Owners The name of the organization of unit owners is _______________________, a
corporation organized and existing under the laws of the state of ______________, with its
principal office located at _______________________ (street address, city, county, state, zip
code) . ___________________ (the Association) has enacted Bylaws, a copy of which are
attached hereto and made a part of this Declaration as Exhibits A.
IV. Description of Building(s) ________________________________________________________________________
______________________________________________________________________________
(Describe each building stating the number of stories, the number of units and the principal
materials of which it is constructed.)
V. Description of Units________________________________________________________________________
______________________________________________________________________________ ______________________________________________________________________________
(Identification of each unit, and a statement of its location, approximate area, number of
rooms, and immediate common area to which it has access, and any other data necessary for
its proper identification.)
VI. Description of Common Areas and Facilities ________________________________________________________________________
______________________________________________________________________________ ______________________________________________________________________________
(Describe common areas and facilities and proportionate interest of each unit in them.)
VII. Common Elements Use The Common Elements shall be used in accordance with and subject to the following
provisions:
A. Covenant against Partition. In order to effectuate the intent of this Declaration and to preserve the
Condominium and the Condominium method of ownership, the Property shall remain
undivided and no person, irrespective of the nature of his or her interest in the Property,
shall bring any action or proceeding for partition or division of the Property or any part of
it until the termination of the Declaration in accordance with provisions elsewhere
contained in this Declaration or until the building is no longer tenantable, whichever first
occurs. An exception to this clause in the event of casualty damage is set forth in Article
XIV of this Declaration.
B. Rules and Regulations Promulgated by Association. No person shall use the Common Elements or any part of them in any manner
contrary to or not in accordance with such rules and regulations pertaining to same as
from time to time may be promulgated by the Association. Without in any manner
intending to limit the generality of the foregoing, the Association shall have the right but
not the obligation, to promulgate rules and regulations limiting the use of the Common
Elements to members of the Association and their respective employees and business
invitees, as well as to provide for the exclusive use by a Unit Owner and his or her
employees and invitees, for specific occasions of the reception room and conference
room or other similar facilities. Such use may be conditioned upon, among other things,
the payment by the Unit Owner of such assessment as may be established by the
Association for the purpose of defraying costs of such use. The Association shall also
have the right to limit the use of the undercover parking facilities in any manner
including but not limited to assigning a specific number of spaces that may be used by
any Unit Owner and/or charging a fee for such spaces. The Board of Directors of the
Association may by a majority vote assess a fine of _______ (e.g., five dollars) per day
against any Unit Owner for any and each violation of the rules and regulations, such fine
or fines to be collected as an assessment in accordance with the provisions of Article
XVI of this Declaration.
C. Maintenance, repair, management, and operation of the Common Elements shall
be the responsibility of the Association, but nothing contained in this Declaration
however shall be construed so as to preclude the Association from delegating to persons,
firms, or corporations of its choice, such duties as may be imposed upon the Association
by the terms of this Paragraph C and as are approved by the Board of Directors of the
Association. An exception to this clause is set forth in Article XXIII of this
Declaration. D. Expenses incurred or to be incurred for the maintenance, repair, management, and
operation of the Common Elements shall be collected from Unit Owners as assessed, in
accordance with the provisions contained elsewhere in this Declaration.
E. Subject to the rules and regulations from time to time pertaining to the Common
Elements, all Unit Owners may use the Common Elements in such manner as will not
restrict, interfere with or impede the use of the Common Elements by other Unit Owners.
F. Alterations and Improvements.
The Association shall have the right to make or cause to be made such alterations
and improvements to the Common Elements (which do not prejudice the right of any
Unit Owner unless his or her written consent has been obtained), provided the making of
such alterations and improvements are first approved by the Board of Directors of the
Association and all first mortgagees of individual units.
1. If ___% or more but less than ___% of the Unit Owners agree to make
an improvement to the common areas and facilities, and assess the cost for the
improvement, the cost of such improvement shall be borne solely by the Owners
so agreeing.
2. _____% or more of the Unit Owners may agree to make an improvement to
the common areas and facilities and assess the cost of the improvement to all Unit
Owners as a common expense, but if such improvement shall cost in excess of
______% of the then value of the condominium, any Unit Owner not so agreeing
may apply to the _____________________ (name of court) of the County in
which the property is located, on such notice to the organization of Unit Owners
as the Court shall direct, for an order directing the purchase of his or her unit by
the organization of Unit Owners at the fair market value of the unit as approved
by the Court. The cost of any such purchase shall be a common expense.
G. Shares of Unit Owners. The Shares of the Unit Owners in the Common Elements shall be as stated in
Article VI and may be altered only by amendment of this Declaration executed in form
for recording by all of the Unit Owners and First Mortgagees of such Owners. No such
alteration shall affect the lien of prior recorded mortgages unless written consent of the
holder of such mortgage is obtained and recorded.
H. The share of a Unit Owner in the Common Elements is appurtenant to the Unit
owned by him, and inseparable from Unit Ownership.
VIII. Maintenance and Repair of Units A. By the Association. The Association, at its expense, shall be responsible for the maintenance, repair
and replacement of:
1. All portions of the Unit which contribute to the support of the Building,
excluding, however, interior wall, ceiling and floor surfaces, and including, but
not limited to, outside walls of the Building, structural slabs, roof, interior
boundary walls of Units, and load-bearing columns; 2. All conduits, ducts, plumbing, wiring, and other facilities for the furnishing
of utility services which may be contained in the Unit but excluding appliances,
office machinery, and plumbing fixtures; 3. All incidental damage caused to a Unit by such work as may be done or
caused to be done by the Association in accordance with this article;4. Cause the building, appurtenances, and grounds of the Condominium to be
maintained according to reasonably acceptable standards, including, but not
limited to, lawn care, exterior cleaning, exterior painting, plumbing, carpentry,
and such other normal maintenance and repair work as may be necessary; 5. Make contracts for sewer, water, exterior lights, refuse collection, exterior
electric service, vermin extermination, and other necessary services. Also place
orders for such equipment, tools, appliances, materials, and supplies as are
necessary to properly maintain the Condominium; and 6. Cause to be placed and kept in force necessary insurance needed adequately
to protect the Association, its members and mortgagees holding mortgages
covering Condominium parcels, as their respective interest may appear (or as
required by law), including, but not limited to, elevator maintenance contracts, if
applicable, public liability insurance, fire, and extended coverage insurance, as is
more particularly set forth in this Declaration of Condominium.
Funds for the payment of the above and foregoing shall be assessed against
the Unit Owners as a common expense.
B. By the Unit Owner. The responsibility of the Unit Owner shall be as follows:
1. To maintain, repair, and replace at his or her expense, all portions of the Unit
except the portions of each to be maintained, repaired, and replaced by the
Association; 2. To perform his or her responsibilities in such manner so as not unreasonably
to disturb the rights of other persons occupying within the Building;3. Not to paint or otherwise decorate or change the appearance of any portion
of the Building not within the walls of the Unit, unless the written consent of the
Association is obtained; 4 . To promptly report to the Association or its agent any defect or need for
repairs or maintenance, the responsibility for the remedying of which is with the
Association; and 5. Not to make any alterations in the portions of the Unit or the Building which
are to be maintained by the Association or remove any portion of the same or
make any additions to the same or do anything which would or might jeopardize
or impair the safety or soundness of the Building without first obtaining the
written consent of the Board of Directors of the Association and all first
mortgagees of individual Units, nor shall any Unit Owner impair any easement
without first obtaining the written consents of the Association and of the Unit
Owner or Owners for whose benefit such easement exists.
C. Nothing contained in this Declaration, however, shall be construed so as to
impose a contractual liability upon the Association for maintenance, repair, and
replacement, but the Association's liability shall be limited to damages resulting from
negligence.
IX. Units shall be Constituted as Follows A. Real Property. Each Unit, together with the space within it as shown on the Architect's Plans and
together with all appurtenances to the Unit, shall, for all purposes, constitute a separate
parcel of real property which may be owned in fee simple and which may be conveyed,
transferred, and encumbered in the same manner as any other parcel of real property,
independently of all other parts of the Property, subject only to the provisions of this
Declaration.
B. Boundaries. Each Unit shall be bounded as to both horizontal and vertical boundaries as
shown on the Architect's Plans, subject to such encroachments as are contained in the
Building whether the same exist now or are created by construction, settlement, or
movement of the Building, or permissible repairs, reconstruction, or alterations. The
boundaries are intended to be as follows:
1. Horizontal Boundaries: a) The underside of the concrete slab above and abutting the Unit; and
b) The underside of the concrete slab below and abutting the Unit.
2. Vertical Boundaries: a) Between Units: the plane formed by the center line of the wall between
Units; b) Exterior boundaries : the plane formed by the exterior side of the wall in
which the windows are located; and c) Between Unit and hallways : the plane formed by the center line of the
wall.
C. Appurtenances.
Each Unit shall include and the same shall pass with each Unit as an inseparable
appurtenance to the Unit, whether or not separately described, conveyed, or encumbered,
all of the rights, title, and interest of a Unit Owner in the Property, which shall include
but not be limited to:
1. Common Elements: an undivided share of the Common Elements, such
undivided share to be that portion set forth in Article VI of this Declaration;
2. A license with or without monthly fees to maintain a private passenger
automobile at and on a parking space in accordance with the Rules and
Regulations of the Association; 3. Easements for the benefit of the Unit;
4. Stock in the Association and funds and assets held by the Association for the
benefit of the Unit Owner;5. All such appurtenances, however, shall be and continue to be subject to the
easements for the benefit of other Units;6. In addition to and not in derogation of the ownership of the space described
on the Architect's Plans, an exclusive easement for the use of the space not owned
by the Unit Owner and which is occupied by the Unit, which easement shall exist
until the earlier of such time as this Declaration is terminated in accordance with
the provisions elsewhere contained in this Declaration, or the building is no
longer tenantable; and 7. The following easements from each Unit Owner to each other Unit Owner
and to the Association:
a) Ingress and Egress
Easements through the Common Elements for ingress and egress for all
persons making use of such Common Elements in accordance with the terms
of the Condominium Documents. b) Maintenance, Repair, and Replacement
Easements through the Units and Common Elements for maintenance,
repair, and replacement of the Units and Common Elements. Use of these
easements, however, for access to the Units shall be limited to reasonable
hours, except that access may be had at any time in case of emergency.
c) Utilities.
Easements through the Units and Common Elements for all facilities for
the furnishing of utility services within the Building, which facilities shall
include but not be limited to conduits, ducts, plumbing, and wiring; provided,
however, that the easements for such facilities through a Unit shall be only
substantially in accordance with the Plans and Specifications of the Building.
d) Structural Support.
Every portion of a Unit which contributes to the structural support of the
Building shall be burdened with an easement of structural support for the
benefit of the Common Elements.
e) Emergency Easements of Ingress and Egress
Easements whenever reasonably required for emergency ingress and
egress. No Unit Owner shall install or allow to be installed any security
device or other thing which will or might impair such easements.
X. Purpose and Use Restrictions The purpose of this condominium is to provide for the operation of a building with the
condominium form of ownership. In order to provide for a congenial occupation of the Building
and to provide for the protection of the values of the Units, the use of the Property shall be
restricted to and be in accordance with the following provisions:
A. The Units shall be used for only those purposes allowed by the zoning Bylaws of
the City of ____________.
B. The Common Elements shall be used for the furnishing of services and facilities
for which the same are reasonably intended, for the enjoyment of the Units.C. No Unit shall be occupied by any person not approved in advance by the Board of
Directors of the Association. The Association shall signify in writing such approval or
disapproval within ____ (number) days after the same is requested in writing, provided
that simultaneously with such request, there is submitted to the Association the name of
the person in question, the present address and three references, together with such other
information as the Association might reasonably request. Any such approval once given
may not subsequently be withdrawn. Failure of the Board of Directors to disapprove
within such period conclusively shall be deemed to constitute approval. The provisions in
this paragraph shall not be applicable to any mortgagee or purchaser or lessee from such
mortgagee as recited in Article XXII of this Declaration.
D. Nuisances No nuisances shall be allowed upon the Property nor shall any use or practice be
allowed which is a source of annoyance to occupants or which interferes with the
peaceful possession and proper use of the Property by its residents and occupants.
E. Lawful Use No immoral, improper, offensive, or unlawful use shall be made of the Property
nor any part of it and all valid laws, zoning ordinances, and regulations of all
governmental bodies having jurisdiction shall be observed. The respective responsibilities
of Unit Owners and the Association of complying with the requirements of governmental
bodies which require maintenance, modification, or repair of the Property shall be the
same as provided above for the maintenance and repair of that portion of the Property
subjected to such requirements.
F. Interpretation In interpreting deeds, mortgages, and plans, the existing physical boundaries of
the unit or of a unit reconstructed in substantial accordance with the original plans shall
be conclusively presumed to be its boundaries rather than the metes and bounds
expressed in the deed, mortgage, or plan, regardless of settling or lateral movement of the
building and regardless of minor variance between boundaries shown on the plan or in
the deed and those of the building.
G. Regulations Regulations concerning use of the Property may be promulgated by the
Association as set forth above; provided, however, that copies of such regulations are
furnished to each Unit Owner prior to the time that the same become effective. The initial
regulations, which shall be deemed effective until amended by the Association, are
annexed to and made a part of this Declaration as Exhibit B. Any amendments to the
regulations shall be recorded in the _______________________________ (County
official’s name and office where Deeds are recorded), as amendments to the
Regulations. Such regulations shall not impair or limit the rights of mortgagees, as
elsewhere recited.
XI. Conveyances The sale, leasing, and mortgaging of Units shall be subject to the following provisions
until this Declaration is terminated in accordance with provisions elsewhere contained in this
Declaration, or until the Building is no longer tenantable, whichever first occurs:
A. Sale or Lease. No Unit Owner may dispose of a Unit or any interest in a Unit by sale or by lease
without approval of the Board of Directors, except as elsewhere provided in this
Declaration, which approval of the Association shall be obtained in the manner provided
below. 1. Notice to Association.
A Unit Owner intending to make a sale or lease of his or her Unit or any
interest in the Unit shall give written notice to the Association of such intention,
together with the name and address of the intended purchaser or lessee, such other
information as the Association reasonably may require and the terms of the
proposed transaction. The giving of such notice shall constitute a warranty and
representations by the Unit Owner to the Association and any purchaser or lessee
produced by the Association as provided below in this Declaration, that the Unit
Owner believes the proposal to be bona fide in all respects.
2. Election of Association.
Within _____ (number) days after receipt of such notice, the Board of
Directors of the Association shall either approve the transaction or furnish a
purchaser or lessee approved by the Association (and give notice to the person
desiring to sell or lease his or her Unit) who will accept the transaction upon
terms as favorable to the seller as the terms stated in the notice, except that a
purchaser or lessee furnished by the Association may have not less than ______
(number) days subsequent to the date of approval within which to close the
transaction, and except that the approval of a corporation may be conditioned as
elsewhere stated. The approval of the Board of Directors of the Association shall
be in recordable form, signed by any two members of the Board, and shall be
delivered to the purchaser or lessee. The failure of the Association to act within
such ______ (number)-day period shall be deemed to constitute approval,
following which the Association nevertheless shall prepare and deliver written
approval in recordable form. The Unit Owner giving such notice shall be bound to
consummate the transactions with such purchaser or lessee as may be approved
and furnished by the Association. The right of election shall not be exercised so as
to restrict alienation, conveyance, sale, leasing, purchase, ownership, and
occupancy of units because of race, creed, color, or national origin.
B. Mortgage No original Unit Owner may mortgage his or her Unit nor any interest in the Unit
without the approval of the Association except to _______________________________
(set forth exceptions). No subsequent owner may mortgage his or her Unit or any interest
in the Unit without the approval of the Association, excepting to a National or State
Bank, Life Insurance Company or to a vendor to secure not more than ____% of the
purchase price. The approval of any other mortgagee shall be upon the terms and
conditions as determined by the Association or may be arbitrarily withheld.
C. Owners' Units and Other Privileges The original owners ( Developers), who have executed this Declaration of
Condominium, their heirs, executors, administrators, successors, and assigns, are
irrevocably empowered, notwithstanding this Declaration of Condominium, By-laws,
Restrictions, Rules, and Regulations, or as the same may be amended from time to time,
to sell, convey, lease, sublease, encumber, rent, or otherwise dispose of, any interest they
may have in and to any Units to any person or entity approved by them. They shall have
the right to transact on the Property any business necessary to consummate the sale or
lease of Condominium Units, including but not limited to, the right to maintain models,
have signs, employees in the office, use of the common elements, and to show Units. A
sales office, signs, and all items pertaining to sales, shall not be considered to be common
elements. If there are unsold Condominium Units, the owners are vested with the right to
be the owners of such units, under the same terms and conditions as other owners, and
shall have the right to sell, rent, lease, or sublease, as set forth above.
XII. Administration The administration of the Property, including but not limited to the acts required of the
Association, shall be governed by the following provisions:
A. The Association shall be incorporated under the name ____________________
as a corporation under the laws of the State of ____________. Any other form of
organization for the Association may be submitted after first obtaining the written
approval of all of the members of the Association.
B. The Bylaws of the Association shall be in the form attached as Exhibit A until
such are amended in the manner provided in such bylaws.C. The duties and powers of the Association shall be those set forth in this
Declaration, the Articles of Incorporation and the Bylaws, together with those reasonably
implied to effect the purposes of the Association and this Declaration; provided, however,
that if there are conflicts or inconsistencies between this Declaration and either the
Articles of Incorporation or the Bylaws, the terms and provisions of this Declaration shall
prevail and the Unit Owners covenant to vote in favor of such amendments in the Articles
of Incorporation and/or Bylaws as will remove such conflicts or inconsistencies. The
powers and duties of the Association shall be exercised in the manner provided by the
Articles of Incorporation and the Bylaws and any duties or rights of the Association
which are granted by or to be exercised in accordance with the provisions of this
Declaration, shall be so exercised except that wherever this Declaration requires the act
or approval of the Board of Directors of the Association, such act or approval must be
that of the Board done or given in accordance with the Bylaws. D. Notices or demands, for any purpose, shall be given by the Association to Unit
Owners and by Unit Owners to the Association and other Unit Owners in the manner
provided for notices to members of the Association by the Bylaws of the Association.
E. All funds and titles of all properties acquired by the Association and the proceeds
of the same after deducting the costs incurred by the Association in acquiring the same
shall be held for the benefit of the Unit Owners for the purposes stated in this
Declaration.
F. All income received by the Association from the rental or licensing of any part of
the Common Elements (as well as such income anticipated) shall be used for the purpose
of reducing prospective Common Expenses prior to establishing the annual assessment
for Common Expenses.
G. The Association, by and through its Board of Directors, is by this Declaration
vested with the power to delegate its powers, duties, and authority granted by this
Declaration, by entering into a management contract with such persons or organizations
or corporations, and upon such conditions and terms as the Board of Directors may elect
except as provided in Article XXIII of this Declaration. The management costs and fees
as may be contained in any management contract shall be common expenses.
XIII. Insurance The insurance which shall be carried upon the Property shall be governed by the
following provisions: A. Authority to Purchase.
Except for Builder Risk and other required insurance furnished by Developer
during construction, all insurance policies upon the Property (except as allowed below)
shall be purchased by the Association for the benefit of the Unit Owners and their
respective mortgagees as their interests may appear and shall provide for the issuance of
certificates of insurance mortgage endorsements to the holders of first mortgages on the
Units or any of them, and, if insurance companies will agree, shall provide that the
insurer waives its rights of subrogation as to any claims against Unit Owners, the
Association and their respective employees, agents, and invitees. Such policies and
endorsements shall be deposited with the Insurance Trustee (as defined below), who must
first acknowledge that the policies and any proceeds of the policies will be held in
accordance with the terms of this Declaration.
B. Unit Owners Each Unit Owner may obtain insurance, at his or her own expense, affording
coverage upon his or her personal property and for personal liability and as may be
required by law, but all such insurance shall contain the same waiver of subrogation as
that referred to in Article VIII, Paragraph A of this Declaration (if the same is
available) and must be obtained from an insurance company from which the Association
obtains coverage against the same risk, liability, or peril, if the Association has such
coverage.
C. Coverage 1. Casualty
The Building and all other insurable improvements upon the land and all personal
property as may be owned by the Association shall be insured in an amount equal
to the maximum insurable replacement value of the same (exclusive of excavation
and foundations) as determined annually by the insurance company affording
such coverage. Such coverage shall afford protection against:
a) Loss or damage by fire and other hazards covered by the standard
extended coverage endorsement; and b) Such other risks as from time to time customarily shall be covered with
respect to buildings similar in construction, location, and use as the Building,
including but not limited to, vandalism, malicious mischief, windstorm, and
water damage. 2. Public Liability and property damage in such amounts and in such forms as
shall be required by the Association including but not limited to water damage,
legal liability, hired automobile, non-owned automobile, and off-premises
employee coverages. 3. Worker's Compensation policy to meet the requirements of law.
4. All liability insurance shall contain cross-liability endorsements to cover
liabilities of the Unit Owners as a group to a Unit Owner.
D. Premiums Premiums upon insurance policies purchased by the Association shall be paid by
the Association and charged as Common Expenses.
E. All insurance policies purchased by the Association shall be for the benefit of the
Association and the Unit Owners and their mortgagees as their respective interests may
appear and shall provide that all proceeds payable as a result of casualty losses shall be paid
to the _____________ (name of bank), as Trustee, or to any other bank with trust powers as
may be approved by the Association. Such Trustee or any other bank acting as such is
referred to in this Declaration as the Insurance Trustee. The Insurance Trustee shall not be
liable for payment of premiums nor for the renewal of the policies, nor for the sufficiency of
coverage, nor for the form or contents of the policies, nor for the failure to collect any
insurance proceeds. The sole duty of the Insurance Trustee shall be to receive such proceeds
as are paid and to hold the same in trust for the purposes elsewhere stated in this Declaration,
and for the benefit of the Association, the Unit Owners and their respective mortgagees, in
the following shares, but such shares need not be set forth upon the records of the
Insurance Trustee:
1. Common Elements
Proceeds on account of damage to Common Elements that undivided share for
each Unit Owner and his or her mortgagee, if any, which is set forth in Article Six
of this Declaration.
2. Units
Proceeds on account of Units shall be held in the following undivided shares: a) Partial destruction when the Building is to be restored - for the Owners
of damaged Units in proportion to the cost of repairing the damage suffered
by each damaged Unit. Upon the request of the Insurance Trustee, the
Association shall certify to the Insurance Trustee the appropriate portions,
and each Unit Owner shall be bound by and the Insurance Trustee may rely
upon such certification. b) Total destruction of the Building or where the Building is not to be
restored - for all Unit Owners, the share of each being that share set forth in
Article VI of this Declaration.
3. Mortgages.
If a mortgagee endorsement has been issued as to a Unit, the share of the Unit
Owner shall be held in trust for the mortgagee and the Unit Owner as their
interests may appear.
F. Distribution of Proceeds Proceeds of Insurance policies received by the Insurance Trustee shall be
distributed to or for the benefit of the beneficial Owners after first paying or making
provision for the payment of the expense of the Insurance Trustee in the following
manner:
1. Reconstruction or Repair.
If the damage for which the proceeds were paid is to be repaired or reconstructed,
the proceeds shall be paid to defray the cost of such repair or reconstruction as
elsewhere provided. Any proceeds remaining after defraying such costs shall be
distributed to the beneficial Owners, all remittances to Unit Owners and their
mortgagees being payable jointly to them. This is a covenant for the benefit of
any mortgagee of a Unit and may be enforced by him or her.
2. Failure to Reconstruct or Repair
If it is determined in the manner elsewhere provided, that the damage for which
the proceeds are paid shall not be reconstructed or repaired, the proceeds shall be
distributed to the beneficial Owners, remittances to Unit Owners and their
mortgagees being payable jointly to them. This is a covenant for the benefit of
any mortgagee of a Unit and may be enforced by him or her.
3. Certificate
In making distribution to Unit Owners and their mortgagees, the Insurance
Trustee may rely upon a certificate of the Association as to the names of the Unit
Owners and their respective shares of the distribution. Upon request of the
Insurance Trustee, the Association forthwith shall deliver such certificate.
XIV. Fourteen Reconstruction or Repair of Casualty Damage A. If any part of the Common Elements shall be damaged by casualty, the
determination of whether or not to reconstruct or repair the same shall be made as
follows:
1. Rebuilding of the common areas and facilities made necessary by fire or
other casualty loss shall be carried out in the manner set forth in the condominium
documents dealing with the necessary work of maintenance, repair, and
replacement, using common funds, including the proceeds of any insurance, for
that purpose, provided such casualty loss does not exceed ____% of the
value of the condominium prior to the casualty. 2. If the casualty loss exceeds ____% of the value of the condominium prior to
the casualty, and
a) If ____% of the unit owners do not agree within ___ (number) days
after the date of the casualty to proceed with repair or restoration, the
condominium, including all units, shall be subject to partition at the suit of any
unit owner. Such suit shall be subject to dismissal at any time prior to entry of an
order to sell if an appropriate agreement to rebuild is filed. The net proceeds of a
partition sale together with any common funds shall be divided in proportion to
the unit owners' respective undivided ownership in the common areas and
facilities. Upon such sale, the condominium shall be deemed removed from the
provisions of State Statutes.
b) If ____% of the unit owners agree to proceed with the necessary repair
or restoration, the cost of the rebuilding of the condominium, in excess of any
available common funds, including the proceeds of any insurance, shall be a
common expense, provided, however, that if such excess cost exceeds _____% of
the value of the condominium prior to the casualty, any unit owner who did not
so agree may apply to the __________ (specify court) of _________ (county) on
such notice to the Association as the court shall direct, for an order directing the
purchase of his or her unit by the Association at the fair market value of the unit
as approved by the court. The cost of any such purchase shall be a common
expense.
3. Any such reconstruction or repair shall be substantially in accordance with
the Plans and Specifications. 4. Encroachments upon or in favor of Units which may be created as result of
such reconstruction or repair shall not constitute a claim or basis of a proceeding
or action by the Unit Owner upon whose property such encroachment exists,
provided that such reconstruction was either substantially in accordance with the
Plans and Specifications or as the Building was originally constructed. Such
encroachments shall be allowed to continue in existence for so long as the
Building stands.
5. Certificate The Insurance Trustee may rely upon a certificate of the Association
certifying as to whether or not the damaged property is to be reconstructed or
repaired. The Association, upon request of the Insurance Trustee, shall deliver
such certificate as soon as practical.
B. Responsibility If the damage is only to those parts of one Unit for which the responsibility of
maintenance and repair is that of the Unit Owner, then the Unit Owner shall be
responsible for reconstruction and repair after casualty. In all other instances, the
responsibility of reconstruction and repair after casualty shall be that of the Association.
1. Estimate of Costs
Immediately after a casualty causing damage to property for which the
Association has the responsibility of maintenance and repair, the Association shall
obtain reliable and detailed estimates of the cost to place the damaged property in
condition as good as that before the casualty. Such costs may include professional
fees and premiums for such Bonds as the Board of Directors desires.
2. Assessments
If the proceeds of insurance are not sufficient to defray the estimated costs of
reconstruction and repair by the Association (including the above-mentioned fees
and premiums, if any) assessments shall be made against the Unit Owners who
own the damaged property in sufficient amounts to provide funds to pay the
estimated costs. If at any time during reconstruction and repair, or upon
completion of reconstruction and repair, or upon completion of reconstruction and
repair, the funds for the payment of the costs of same are insufficient, assessments
shall be made against the Unit Owners who own the damaged property in
sufficient amounts to provide funds for the payment of such costs.
3. Construction Funds.
The funds for payment of costs of reconstruction and repair after casualty,
which shall consist of proceeds of insurance held by the Insurance Trustee and
funds collected by the Association from assessments against Unit Owners, shall
be disbursed in payment of such cost in the following manner:
a) Association
If the amount of the estimated costs of reconstruction and repair exceeds the
total of the annual assessments for Common Expenses made during the year in
which the casualty occurred, then the sums paid upon assessments to meet such
costs shall be deposited by the Association with the Insurance Trustee. In all other
cases, the Association shall hold the sums paid upon such assessments and
disburse the same in payment of the costs of reconstruction and repair. b) Insurance Trustee
The proceeds of insurance collected on account of a casualty, and the sums
deposited with the Insurance Trustee by the Association from collections of
assessments against Unit Owners on account of such casualty, shall constitute a
construction fund which shall be disbursed in payment of the costs of
reconstruction and repair in the following manner: i. Unit Owner
The portion of insurance proceeds representing damage for which the
responsibility of reconstruction and repair lies with the Unit Owner; to such
contractors, suppliers, and personnel as do the work or supply the materials or
services required for such reconstruction or repair, in such amounts and at such
times as the Unit Owner may direct; or if there is a mortgagee endorsement, then
to such payees as the Unit Owner and the first mortgagee jointly direct. Nothing
contained in this Declaration, however, shall be construed so as to limit or modify
the responsibility of the Unit Owner to make such reconstruction or repair.
ii. Association: Lesser damage
If the amount of the estimated costs of reconstruction and repair is less
than the total of the annual assessments for Common Expenses made during the
year in which the casualty occurred, then the construction fund shall be disbursed
in payment of such costs upon the order of the Association; provided, however,
that upon request of a mortgagee which is a beneficiary of an insurance policy,
the proceeds of which are included in the construction fund, such fund shall be
disbursed in the manner provided below for the reconstruction and repair of major
damage.
iii. Association: Major damage.
If the amount of the estimated costs of reconstruction and repair of the
Building or other improvement is more than the total of the annual assessments
for Common Expenses made during the year in which the casualty occurred, then
the construction fund shall be disbursed in payment of such costs in the manner
required by the Board of Directors of the Association and upon approval of an
architect qualified to practice in _________ (state) and employed by the
Association to supervise the work.
iv. Surplus
It shall be presumed that the first moneys disbursed in payment of costs of
reconstruction and repair shall be from insurance proceeds; and if there is a
balance in a construction fund after payment of all costs of the reconstruction and
repair for which the fund is established, such balance shall be distributed jointly to
the Unit Owners and their mortgagees who are the beneficial owners of the fund.
v. When the damage is to both Common Elements and Units, the
insurance proceeds shall be applied first to the costs of repairing the Common
Elements and the balance to the Units in the shares above stated.
vi. Insurance Adjustments
Each Unit Owner shall be deemed to have delegated to the Board of
Directors his or her right to adjust with insurance companies all losses under
policies purchased by the Association except in any case where the damage is
restricted to one Unit, subject to the rights of mortgagees of such Unit Owners.
XV. Taxes and Special Assessments A. The assessment of each of the Units for taxes and special assessments by
governmental bodies may be done in the following manner:
1. Determination of Value
The total value for the tax or assessment roll for the Property shall be
determined without regard to the Units against which taxes and assessments are
ultimately to be levied.
2. Allocation of Assessments to Units
The assessment for each Unit shall be the Unit's respective Share of the
Assessment of the Property.
3. Certificate Any Tax Assessor may rely upon a Certificate of the Association as to the
Share of each Unit and upon request or whenever appropriate, the Association
shall issue such Certificate.
B. During the period of time the taxes and special assessments upon the Property or
any portion of it are not assessed to Units, the taxes and assessments not separately
assessed to Units shall be included in the budget of the Association and shall be paid by
the Association. The Association shall assess each Unit Owner in accordance with the
manner set forth above for allocation of taxes and special assessments by the Tax
Assessors.
C. Return for Taxation No Unit Owner shall make a return for taxation which is inconsistent in any
manner with the provisions of this Declaration and if any such return is made it shall be
void.
XVI. Assessments Assessments against the Unit Owners shall be made or approved by the Board of
Directors of the Association and paid by the Unit Owners to the Association in accordance with
the following provisions:
A. Share of Common ExpenseEach Unit Owner shall be liable for his or her share of the Common Expenses,
and any Common Surplus shall be owned by each unit Owner in a like share, according
to the following percentages:
Share of Expenses Unit Number Percent
$_____________ _______ ____ %
$_____________ _______ ____ %
$_____________ _______ ____ %
B. Assessments other than Common Expenses Any assessments, the authority to levy which is granted to the Association or its
Board of Directors by the Condominium Documents, shall be paid by the Unit Owners to
the Association in the proportions set forth in the provision of the Condominium
Documents authorizing the Assessment.
C. Assessments for Common Expenses Assessments for Common Expenses shall be made for the calendar year annually
in advance on or before the second _____ (day of week) in _________ (month) of the
year preceding for which the assessments are made and at such other and additional times
as in the judgment of the Board of Directors additional Common Expenses assessments
are required for the proper management, maintenance, and operation of the Common
Elements. Such annual assessments shall be due and payable in three equal consecutive
monthly payments, on the first day of each month, beginning with January of the year for
which the assessments are made. The total of the assessments shall be in the amount of
the estimated Common Expenses for the year including a reasonable allowance for
contingencies and reserves less the amounts of unneeded Common Expense Account
balances and less the estimated payments to the Association for defraying the costs of the
use of Common Elements. If an annual assessment is not made as required, a payment in
the amount required by the last prior assessment shall be due upon each assessment
payment date until changed by a new assessment. D. Other Assessments shall be made in accordance with the provisions of the
Condominium Documents and if the time of payment is not set forth in the Condominium
Documents, the same shall be determined by the Board of Directors of the Association.
E. Assessments for Emergencies Assessments for Common Expenses of emergencies which cannot be paid from
the Common Expense Account shall be made only by the Board of Directors of the
Association.
F. Assessments for Liens All liens of any nature including taxes and special assessments levied by
governmental authority which are a lien upon more than one Unit or upon any portion of
the Common Elements, shall be paid by the Association as a Common Expense and shall
be assessed against the Units in accordance with the Shares of the Units concerned or
charged to the Common Expense Account, whichever in the judgment of the Board of
Directors is appropriate.
G. Assessment Roll The assessments against all Unit Owners shall be set forth upon a roll of the Units
which shall be available in the Office of the Association for inspection at all reasonable
times by the Unit Owners or their authorized representatives. Such roll shall indicate for
each Unit the name and address of the Owner or Owners, the assessments for all
purposes, and the amounts of all assessments paid and unpaid. A certificate made by the
Association as to the status of a Unit Owner's assessment account shall limit the liability
of any person for whom made other than the Unit Owner when recorded in the ____________________________________________________ (County official’s
name and office where Deeds are recorded) . The Association shall issue such
certificates in recordable form to such persons as a Unit Owner shall request in writing.
H. Liability for Assessments
The Owner of a Unit and his or her grantees shall be jointly and severally liable
for all unpaid assessments due and payable at the time of a conveyance but without
prejudice to the rights of the grantee to recover from the grantor the amounts paid by the
grantee for the same. Such liability may not be avoided by a waiver of the use or
enjoyment of any Common Element or by abandonment of the Unit for which the
assessments are made. A Purchaser of a Unit at a judicial or foreclosure sale or a first
mortgagee who accepts a deed in lieu of foreclosure shall be liable only for assessments
coming due after such sale and for that portion of due assessments prorated to the period
after the date of such sale. Such a purchaser shall be entitled to the benefit of all pre-paid
assessments paid beyond the date such purchaser acquired title.
I. Lien for Assessments
The unpaid portion of an assessment which is due shall be secured by a lien upon
the Unit and all appurtenances to the Unit and shall be enforced in the manner provided
in State Statutes . Such lien shall have priority over all other liens, except municipal liens
and first mortgages of record held by a bank or insurance company, as to such portion of
the common expenses as became due within six months prior to the commencement of an
action to enforce such lien pursuant to State Statutes. Such a claim of lien shall also
secure all assessments which come due subsequently until the claim of lien is satisfied.
J. Application 1. Interest; Application of Payments
Assessments and installments of assessments paid on or before _____
(number) days after the date when due shall not bear interest but all sums not paid
on or before _______ (number) days after the date when due shall bear interest at
the rate of ______% per year from the date when due until paid. All payments
upon account shall be applied first to interest and then to the assessment payment
first due. All interest collected shall be credited to the Common Expense Account.
2. Suit
The Association at its option may enforce collection of delinquent
assessments by suit at law or by foreclosure of the liens securing the assessments
or by any other competent proceeding and in any event, the Association shall be
entitled to recover in the same action, suit, or proceeding the payments which are
delinquent at the time of judgment or decree together with interest at the rate of
____% per year, and all costs incident to the collection and the action, suit or
proceedings, including, but not limited to, reasonable attorney's fees.
XVII. Compliance and Default Each Unit Owner shall be governed by and shall comply with the terms of the
Condominium Documents and Regulations adopted pursuant to the Condominium Documents
and the Documents and Regulations as they may be amended from time to time. A default shall
entitle the Association or other Unit Owners to the following relief:
A. Legal Proceeding
Failure to comply with any of the terms of the Condominium Documents and
Regulations adopted pursuant to the Condominium Documents, shall be ground for relief
which may include, but is not limited to, an action to recover sums due for damages,
injunctive relief, foreclosure of lien or any combination of the same, and which relief
may be sought by the Association or if appropriate, by an aggrieved Unit Owner.
B. All Unit Owners shall be liable for the expense of any maintenance, repair, or
replacement rendered necessary by his or her act, neglect or carelessness or by that of any
employees, invitees, agents, or lessees, but only to the extent that such expense is not met
by the proceeds of insurance carried by the Association. Such liability shall include any
increase in fire insurance rates occasioned by use, misuse, occupancy, or abandonment of
any Unit or its appurtenances. Nothing contained in this Declaration however, shall be
construed so as to modify any waiver by insurance companies of rights of subrogation.
C. Costs and Attorneys' Fees
In any proceeding arising because of an alleged default by a Unit Owner, the
prevailing party shall be entitled to recover the costs of the proceeding and such
reasonable attorneys' fees as may be determined by the Court.
D. No Waiver of Rights
The failure of the Association or of a Unit Owner to enforce any right, provision,
covenant, or condition which may be granted by the Condominium Documents shall not
constitute a waiver of the right of the Association or Unit Owner to enforce such right,
provision, covenant, or condition in the future.
E. All rights, remedies, and privileges granted to the Association or a Unit Owner
pursuant to any terms, provisions, covenants, or conditions of the Condominium
Documents shall be deemed to be cumulative, and the exercise of any one or more shall
not be deemed to constitute an election of remedies nor shall it preclude the party thus
exercising the same from exercising such other and additional rights, remedies, or
privileges as may be granted to such party by the Condominium Documents or at law or
in equity.
XVIII. Amendment
Except for alterations in the Shares which cannot be done except with the consent of all
Unit Owners whose Shares are being affected, and their mortgagees, the Condominium
Documents may be amended in the following manner:
A. Master Deed Declaration of Condominium. Amendments to this Master Deed Declaration of Condominium shall be proposed
and adopted as follows:
1. NoticeNotice of the subject matter of the proposed amendment in reasonably
detailed form shall be included in the Notice of any meeting at which a proposed
amendment is considered.
2. Resolution
A resolution adopting a proposed amendment may be proposed by either
the Board of Directors of the Association or by the Unit Owners meeting as
members of the Association and after being proposed and approved by either of
such bodies, must be approved by the others. Directors and Unit Owners not
present at the meeting considering such amendment may express their approval in
writing or by proxy. Such approvals must be by not less than ____% of the
Directors and ______% of the Unit Owners and their mortgagees.
3. Recording
A copy of each amendment shall be certified by at least (two) officers of
the Association as having been duly adopted and shall be effective when recorded
in the _____________________________ (County official’s name and office
where Deeds are recorded). Copies of the same shall be sent to each Unit Owner
and his or her mortgagee in the manner elsewhere provided for the giving of
notices but the same shall not constitute a condition precedent to the effectiveness
of such amendment.
B. Articles of Incorporation and Bylaws of Association
The Articles of Incorporation and the Bylaws of the Association shall be amended
in the manner provided by such documents.
XIX. Termination The Condominium shall be terminated, if at all, in the following manner: A. ______% of the Unit Owners may remove all of the condominium or a portion of
it from the provisions of State Statutes by an instrument to that effect, recorded in the
_______________________________________ (County official’s name and office
where Deeds are recorded), provided that the holders of all liens upon any of the Units
affected consent to such removal by instruments duly recorded. The termination shall
become effective when such agreement has been recorded in the ____________________
(County official’s name and office where Deeds are recorded).
B. Destruction If it is determined in the manner elsewhere provided that the property shall not be
reconstructed after casualty, this condominium, including all units, shall be subject to
partition at the suit of any unit owner. Such suit shall be subject to dismissal at any time
prior to entry of an order to sell if an appropriate agreement to rebuild is filed. The net
proceeds of a partition sale together with any common funds shall be divided in
proportion to the unit owners' respective undivided ownership in the common areas and
facilities. Upon such sale, the condominium shall be deemed removed from the
provisions of State Statutes and terminated.
C. Shares of Unit Owners after Termination. After termination as provided in Paragraph A of this Article XIX, the
condominium, including all the units, or the portion thus removed, shall be owned in
common by the unit owners and the organization of unit owners shall be dissolved, unless
it is otherwise provided in the removal instrument. The undivided interest in the property
owned in common held by each unit shall be equal to the percentage of the undivided
interest of such owner in the common areas and facilities. All funds held by the
Association and insurance proceeds, if any, shall be and continued to be held jointly for
the Unit Owners and their first mortgagees in proportion to the amount of the assessments
paid by each Unit Owner. The costs incurred by the Association in connection with a
termination shall be a Common Expense. D. The removal of the condominium from the provisions of State Statutes shall not
bar the subsequent resubmission of the land and buildings involved to the provisions of
State Statutes .
XX. Covenants Running with the Land All provisions of the Condominium Documents shall be construed to be covenants
running with the land and with every part of and interest in the same, including but not limited to
every Unit and the appurtenances to the Unit; and every Unit Owner and claimant of the Property
or any part of or interest in the same, and his or her heirs, executors, administrators, successors,
and assigns shall be bound by all of the provisions of the Condominium Documents.
XXI. Liens A. Protection of Property
All liens against a Unit other than for permitted mortgages, taxes, or special
assessments will be satisfied or otherwise removed within _______ (number) days from
the date the lien attaches. All taxes and special assessments upon a Unit shall be paid
before becoming delinquent.
B. Notice of Lien A Unit Owner shall give notice to the Association of every lien upon his or her
Unit other than for permitted mortgages, taxes, and special assessments within ______
(number) days after the attaching of the lien.
C. Notice of Suit. Unit Owners shall give notice to the Association of every suit or other proceeding
which will or may affect the title of his or her Unit or any other part of the Property, such
notice to be given within _________ (number) days after the Unit Owner receives notice
of the suit or proceeding. D. Failure to comply with this Article concerning liens will not affect the validity of
any judicial sale.
E. The Association shall maintain a register of all permitted mortgages.
XXII. Judicial Sales and other Transfers of Title A. No judicial sale of a Unit nor any interest in a Unit shall be valid unless the sale is
a result of a public sale with open bidding or unless the sale is to a purchaser approved by
the Board of Directors of the Association, which approval shall be in recordable form and
shall be delivered to the purchaser and recorded in the __________________________
(County official’s name and office where Deeds are recorded).
B. Unauthorized Transactions Any sale, mortgage, or lease which is not authorized pursuant to the terms of this
Declaration or for which authorization has not been obtained pursuant to the terms of this
Declaration, shall be void unless subsequently approved by the Board of Directors of the
Association. C. If proceedings are instituted to foreclose any mortgage on any Unit, the
Association, on behalf of one or more Unit Owners, shall have the right to redeem from
the mortgagee for the amount due or to purchase such Unit at the foreclosure sale for the
amount set forth to be due by the mortgagee in the foreclosure proceeds and should the
mortgagor fail to redeem from such mortgage, and in case of such redemption by the
Association, the Association thus redeeming shall take and have absolute fee simple title
to the Property redeemed, free from any claim or right of any grantee, his or her heirs or
assigns, or such mortgagor, and every person claiming by, through, or under such
mortgagor. Nothing contained in this Declaration shall preclude a mortgage institution,
banker, saving, and loan association, insurance company or any other recognized lending
institution from owning a mortgage on any Unit, and such lending institution shall have
an unrestricted, absolute right to accept title to the Unit in settlement and satisfaction of
the mortgage or to foreclose the mortgage in accordance with the terms of the mortgage
and the laws of the State of _____
