This Declaration is made as of the 11th day of Ab qgujt, 1993, by SOUTHERN LAND EQUITIES, INC.., a North Carolina Carolina corporation ("Declarant"), with reference to the Carolina facts:

RECITALS

A. Declarant is the owner (together with Niblock
Development Corp., as to certain lots in Woodlands, and Harold
L. Smith and wife, Sharon D. Smith, as to Lot No. 7 of
Weddington Road Lots, both of which shall join in the
execution hereof) of certain real property located in Cabarrus
County, North Carolina, known as WOODLANDS, PHASE I, MAP 1
(Map Book 25, Page 118), and MAP 2 ( ap Book 25, Page 119),
and WEDDINGTON ROAD LOTS (Map B k 25, Page 94), and
hereinafter referred to collectively as "Phase I/Weddington".
B. Declarant owns certain real property (the
"Additional Land") in Cabarrus County, North Carolina, located
adjacent to Phase I/Weddington and described on that map
attached hereto, identified as Exhibit A, and made a part
hereof. Declarant may, in its sole discretion and without
obligation, by one or more supplemental filings pursuant to
Article 13 hereof, make all or any portion of the Additional
Land, as well as any other property(ies) contiguous thereto,
subject to this Declaration and part of this Project (as
defined in Article 1.21 hereof), within ten years of the date
of this instrument, provided that the Federal Housing
Administration and the Veteran's Administration determines
that the Annexation is in accord with the general plan
heretofore approved by them. Declarant intends to improve the
project as a planned development by dividing the Project into
lots appropriate for single family dwellings.
C. Declarant intends to develop Phase I/Weddington
under a common scheme and general plan for the improvement and
maintenance of Phase I/Weddington and, to the .extent
determined by Declarant from time to .time in the future, all
or any part of the Additional Land.
D. For this purpose Declarant intends to subject Phase
I/Weddington (and so much of the Additional Land as shall,
from time to time, be annexed to the Project in accordance
with the provisions of this Declaration) to the covenants,
conditions, restrictions, easements, liens, charges,
assessments and equitable servitudes set forth in this
Declaration, for the benefit of the Project and the future
owners thereof.
E. Declarant deems it desirable for the management and
administration of the planned development and for the
preservation of the values and amenities of the planned
development to incorporate Woodlands /Weddington Homeowners
Association, Inc. as a non profit corporation under the laws
of the State of North Carolina for the purposes of
administering and enforcing the limitations, covenants,
conditions, restrictions, easements, liens and equitable
servitudes created by or imposed in accordance with the
provisions hereof, collecting and disbursing the assessments
TIC" 0' and charges imposed in accordance with the provisions hereof,
CRITZ BLACK, and exercising such other powers as may be authorized by this
ROGERS & RUTH, PA. Declaration, by law, or by its Articles of Incorporation and
CONCORD CHARLOTTE ~~ Bylaws.

NORTH CAROLINA

NOW, THEREFORE, Declarant hereby declares as follows:

' ARTICLE 1

DEFINITIONS

The following terms shall have the following meanings when used in this Declaration:

1.01. Additional Land. "Additional Land" means the real property described in Exhibit A attached hereto, all or, any portion of which may from time to time be made subject to this Declaration pursuant to the provisions of Article 13 hereof.

1.02. Appraisal. "Appraisal" means an appraisal by a member of the Appraisal Institute of the National Association of Real Estate Boards (or, if such Institute is not then in existence, a like organization).

1.03. Articles. "Articles" means the Articles of Incorporation of the Association, including any amendments thereto.

1.04. Association. "Association" means

• Woodlands /Weddington Homeowners Association, Inc., a North Carolina non profit corporation, its successors and assigns.

1.05. Board. "Board" means the Board of Directors
of the Association.

1.06. Bylaws. "Bylaws" means the Bylaws of the Association, including any amendments thereto.

1.07. Common Area. "Common Area" means all real property, together with any and all improvements located thereon, owned by or held in trust for the benefit of the Association for the common use and enjoyment of its members, but does not include real property over which the Association has only an easement. The Common Area to be owned by the Association at the time of the conveyance of the first lot is as so labeled on Exhibit "A".

1.08. Completion of Sales. "Completion of Sales" means the earlier of (1) conveyance of all Lots in the Project to purchasers other than a successor Declarant hereunder or (2) expiration of the later of ten (10) years from the closing of the first sale of a Lot to a purchaser other than a successor Declarant hereunder, or two (2) years from the conveyance of the first Lot in the Phase most recently made subject to this Declaration to a purchaser other than a successor Declarant hereunder; provided, however, if Declarant is delayed in developing the Project, constructing improvements or selling Lots and dwellings due to strikes or work stoppages; shortages of materials, supplies, fuel, power, or energy; moratoria or suspensions on issuance of land use permits and approvals affecting the availability of water, sewer, power or other utilities or necessary services; inclement weather; civil strife; major disaster or other cause beyond Declarant's reasonable control, said ten (10) year period shall be extended by the period of any such delay.

1.09. County "County" means Cabarrus County in the State of North Carolinas

1.10. Declarant. "Declarant" means Southern Land Equities, Inc., a North Carolina corporation, and any

, cgs or successor or assign to whom Southern Land Equities, Inc., a

BOOK 1086 PAGE 84
1.11. Declaration. "Declaration" means this
Declaration and all amendments or supplements hereto.
1.12. Lot. "Lot" means any numbered lot or plot of
land, together with any improvements thereon, as shown upon
any recorded final subdivision map covering the Project or a
part thereof, which is not a dedicated street or Common Area.
1.13. Member. "Member" means a member of the
Association.
1.14. Mortgage. "Mortgage" means a mortgage or deed
of trust which constitutes a first lien upon a Lot given to a
bank, savings and loan association or other institutional
lender for the purpose of securing indebtedness incurred to
purchase or improve a Lot.
1.15. Mortgagee. "Mortgagee" means the holder of the
beneficial interest in any Mortgage.
1.16. Notice and Opportunity for Hearing. "Notice and
Opportunity for Hearing" means giving at least fifteen (15)
days' prior notice of a proposed action and the reasons
therefor, and an opportunity to be heard by the Board, orally
or in writing, not less than five (5) days before the
effective date of the proposed action.
1.17. Owner. "Owner" means the record owner, whether
one or more persons or entities, of a fee simple title to any
Lot, and shall include Declarant as to any Lot owned by
Declarant, Builders) as to any Lot owned by Builder(s), and
the contract vendee (buyer) under a contract or sale. "Owner"
shall not include any person or entity who holds an interest
in a lot merely as security for the performance of an
obligation or as a tenant.
1.18. Person. "Person" means an individual,
corporation, partnership, trustee or other legal entity
capable of holding title to real property.
1.19. Phase I/Weddington. "Phase I/Weddington"
refers to that real estate so labeled and described in
paragraph A of the Recitals appearing hereinbefore.
1.20. Project. "Project" means the planned
development known as Woodlands which shall be developed and
constructed on part or all of the Property made subject to
this Declaration by recordation of a Supplemental Declaration
pursuant to Article 13.02 of this Declaration.
1.21. Property. "Property" means collectively Phase
I/Weddington, and the real property described in Exhibit A
attached hereto, as well as any other property(ies) contiguous
thereto.
1.22. Rules and Regulations. "Rules and Regulations"
means such reasonable and nondiscriminatory rules and
regulations as may be adopted from time to time by the
Association, provided notice of such rules and regulations has
been given to owners in accordance with the requirements of
this Declaration.
1.23. Supplemental Declaration. "Supplemental
Declaration" means a supplemental declaration of covenants,
conditions and restrictions which shall be recorded for the
purposes of annexing additional property, including all or any
OFFICES IGV.o.
portion of the Additional Land, to the Project and causing

BOOK 1086 roe 85

1.24. Voting Power. "Voting Power" means the total number of votes held by Members (in a class of Members of the

' Association, or of Members other than Declarant, as the case may be) whose membership at the time the determination of voting power is made has not been suspended in accordance with the provisions of this Declaration or of the Rules and Regulations. Voting Power shall be computed by including all such Members whether or not such Members are present in person or by proxy at a meeting. All voting specifications and requirements shall apply to the entire Project.

ARTICLE 2
SUBMISSION AND TERM
2.01. Submission. The Project shall be held,
conveyed, hypothecated, encumbered, sold, leased, rented,
used, occupied and improved subject to each and all of the
limitations, covenants, conditions, restrictions, easements,
liens, charges, assessments and equitable servitudes set forth
herein, all of which are declared to be (i) in furtherance of
a common scheme and general plan for the development,
improvement and maintenance of the Project and (ii) for the
purpose of enhancing, maintaining and protecting the value,
desirability and attractiveness of the Project. All of the
• limitations, covenants, conditions, restrictions, easements,
liens, charges, assessments and equitable servitudes set forth
herein shall run with, be binding upon and inure to the
benefit of the Project, shall be binding on and inure to the
benefit of each and every person having or acquiring any
right, title or interest in the Project, shall be binding upon
and inure to the benefit of the successors in interest of such
persons, and shall insure to the benefit of the
Association,its successors and assigns.
2.02. Incorporation of Declaration Into Instruments.
Any deed or other instrument by which a Lot is conveyed shall
be subject to the provisions of this Declaration and shall be
deemed to incorporate the provisions of this Declaration,
whether or not the deed makes reference hereto.
2.03. Term. This Declaration shall remain in force
for a term of twenty (20) years from the date this Declaration
is recorded, after which time it shall be automatically
extended for successive periods of ten (10) years, unless
sooner terminated by the affirmative vote of seventy five
percent (75%) of the total Voting Power of the Association and
the written consent of seventy five percent (750) of the
Mortgagees.

ARTICLE 3
COMPLIANCE WITH MANAGEMENT DOCUMENTS
3.01. Compliance with Declaration and Other
Documents. Each Owner, resident or tenant of a Lot shall
comply with the provisions of this Declaration, the Bylaws,
Rules and Regulations duly adopted by the Association,
decisions and resolutions of the Association and its duly
authorized representative, all as may be amended from time to
time, and failure to comply with any such provisions,
decisions or resolutions, shall be grounds for an action to
recover sums due for damages or for injunctive relief.
3.02. Resolution of Conflicts Between Documents.
Each Owner covenants and agrees that the administration of the
Project shall be in accordance with the provisions of this
Declaration, the Articles, the Bylaws and Rules and
OFFICES OR Regulations duly adopted by the Association. If there are any
CRITZ, BLACK, matters of conflict or inconsistencies in the Bylaws, Articles
ROGERS & RUTH, P.A. and this Declaration, then the provisions of the Declaration

CONCORD CHARLOTTE ~~ shall prevail. In the event that anything shown on a recorded

' BOOK 1086 PAGE i3&

final subdivision map for all or any portion of the Project is in any way inconsistent with provisions of this Declaration, then the provisions of this Declaration shall prevail. If a dispute arises among owners in regard to the administration of the Project, then the provisions of this Declaration shall prevail.

ARTICLE 4
PROPERTY RIGHTS

4.01. Common Area Easements. Each Owner shall have a non exclusive right and easement of use and enjoyment in and to the Common Area and of access to and from his Lot over any streets comprising a portion of the Common Area (if any), which rights and easements shall be appurtenant to and shall pass with the title to his Lot and subject to the following rights and restrictions:

(A) The right of the Association, after Notice and Opportunity for Hearing, to limit the number of guests of an Owner;

(B) The right of the Association to grant easements and to dedicate or otherwise convey all or any part of the Common Area as provided in this Declaration;

(C) The right of the Association to borrow money to improve, repair, restore and reconstruct the Common Area and to place liens on the Common Area and otherwise encumber the Common Area for such purposes, subject to the approval of Members and Mortgagees as otherwise provided in this Declaration;

(D) The right of the Association to adopt Rules and Regulations governing use and enjoyment of the Common Area; and

(E) Easements for ingress, egress, use and enjoyment over, in, to and throughout the Common Area for the benefit of Declarant.

4.02. Delegation. Any Owner may delegate his rights of use and enjoyment of the Common Area and any facilities thereon to the members of his family or household residing on his Lot and to his guests and invitees while he is in possession of his Lot, subject, however, to reasonable restrictions imposed by the provisions of this Declaration, the Bylaws and the Rules and Regulations. Provided the notice required by Article 4.03 of this Declaration has first been given to the Association, a tenant of an Owner, while residing on such Owner's Lot, shall be entitled to use and enjoy the Common Area and any facilities thereon and to delegate rights of use and enjoyment in the same manner as if such tenant were the Owner of such Lot. No such delegation shall release an Owner from his obligations hereunder, including, without limitation, the obligation to pay regular and special assessments.

Upon request, each Owner or tenant shall notify the Secretary of the Association of the names of all persons to whom such Owner or tenant has delegated any rights of use and enjoyment of the Common Area and the relationship that each such person bears to such owner or tenant. Any delegated rights of use and enjoyment are subject to suspension to the same extent as the rights of Owners.

OFFICES OF 4.03.Tenants.

BOOK 1086 .''6C n'7

Common Area during the period the Lot is occupied by such tenant.

(B) No owner shall lease or rent less than an entire Lot and no more than one family shall live in any one Lot. Except as provided in Article 7.19, the Lots shall not be leased or rented for hotel or transient purposes and no rental agreement or lease shall be made for a period of less than sixty (60) days. Subject to the foregoing restrictions, owners shall have the right to lease or rent their Lots, provided that any lease or rental agreement between an Owner and a tenant shall be in writing and shall provide that it is in all respects subject to the provisions of this Declaration, the Bylaws, and the Rules and Regulations and that any failure by the tenant to comply with such provisions shall be a default under the rental agreement or lease. However, the failure of any lease or rental agreement to so provide shall not excuse any person from complying with the provisions of this Declaration, the Bylaws, and the Rules and Regulations.

(C) In the event an Owner shall rent or lease his Lot such Owner shall immediately give to the Association in writing:

(1) the name of the tenant and the Lot rented or leased;

(2) the current address of such Owner;

(3) a true and complete copy of the lease or rental agreement; and

(4) the certification of the Owner that the tenant has been given a copy of this Declaration, any applicable amendments, the Bylaws and the Rules and Regulations and that such tenant has been advised of any obligations he may have thereunder as a tenant.

(D) In no event shall any lease or rental agreement release or relieve an Owner from the obligation to pay regular and special assessments to the Association, regardless of whether the obligation to pay assessments has been assumed by the tenant in such lease or rental agreement.

4.04. Reciprocal Easements. There shall be reciprocal appurtenant easements between each Lot and such portion or portions of the Common Area as may be adjacent thereto and between adjacent Lots for the flow of rainwater from gutters and downspouts; provided, however, that no such easement shall unreasonably interfere with the use and enjoyment of the Common Area or any adjacent Lot. If any Common Area or Lot encroaches upon a Lot because of the placement, construction, reconstruction, repair, movement, settling or shifting of the improvements constructed, reconstructed or repaired in accordance with the provisions of this Declaration, an easement for the encroachment and for its maintenance shall exist to a distance of not more than one (1) foot as measured from any point on the common boundary between the Common Area and the Lot or between Lots, as the case may be, along a line perpendicular to such boundary at such point: provided, however, that in no event shall such an easement exist for willful encroachments. If any Lot encroaches upon the Common Area as a result of construction, reconstruction, repair, shifting, settlement or movement of any portion of the Project, an easement for the encroachment and for its maintenance shall exist so long as it remains.

OFFICES OF ,«sO. 4.05. Utility Easements. Any easements for

. BOOK 1086 PAGE 88

other way and extend over the rear ten (10) feet and each side five (5) feet of every lot shall be kept free of buildings, and within such easements no structure shall be placed or permitted to remain which may damage or interfere with the installation, maintenance, use or repair of such public utilities, cable television or drainage facilities, or which may damage, interfere, or change the direction or flow of drainage in the easements. All such easements at all times shall be accessible to Declarant until the Project is completed and at all times shall be accessible to all persons installing, repairing, using or maintaining such utilities, cable television and drainage facilities. The easement area for each Lot and all improvements in it shall be maintained continuously by the Owner of such Lot, except for those improvements for which a public authority or utility company is responsible. Declarant reserves the right to create and impose additional easements or rights of way over unsold Lot (s) for street, drainage, and utility installation purposes by the recording of the appropriate instruments and such shall not be construed to invalidate any of these covenants.

4.06. No Time Sharing. There shall be no timesharing or other co ownership which allows multiple Owners sequential possessory interests in a Lot.

4.07. Sale of Common Area. Except as otherwise provided in this Declaration, no sale, transfer, dedication, hypothecation, partition, subdivision, abandonment, release or alienation of the Common Area shall occur or be valid, whether by act or omission of the Association, without a sixty seven percent (67$) majority of the votes appurtenant to the Lots.

Additionally, if ingress or egress to any residence is through the Common Area, any conveyance or encumbrance of such area is subject to the lot owner's easement.

4.08. Rules and Regulations. The Association shall have the right to adopt, publish and enforce Rules and Regulations governing the Project, the use and enjoyment of the Common Area and the personal conduct thereon of the Owners, their guests, invitees, members of their families or households and tenants, provided the Rules and Regulations are approved by a sixty seven percent (67%) majority of the votes appurtenant to the Lots. The Members may amend any such Rules and Regulations adopted by the Board at any regular or special meeting of Members called for such purpose by a sixty seven percent (670) majority of the votes appurtenant to the Lots. Such Rules and Regulations shall be reasonable, shall not discriminate against Declarant (or have an adverse impact on Declarant or upon the sale of Lots or the construction of improvements thereon), and must be consistent with this Declaration, the Articles and the Bylaws. Rules and Regulations shall not be effective until written notice thereof has been given by mailing a copy of the Rules and Regulations, postage prepaid, at least ten (10) days before the effect date of the Rules and Regulations, to each Owner addressed to the Owner's address last appearing in the books of the Association.

4.09 Enforcement. The Association shall have the

right, after Notice and Opportunity for Hearing, to levy fines
for infraction of the provisions of this Declaration or the
Rules and Regulations, provided (i) the Member shall have been
warned in writing of a previous infraction within the
preceding one (1) year, and (ii) the fine conforms to the
provisions of Article 9.10.

ARTICLE 5
COMMON AREA EASEMENTS AND RIGHTS OF WAY; ENCUMBRANCES
5.01. Dedications. The Association shall have the
power to grant easements in, on, over, through and across the
Common Area for any public or quasi public improvements or
facilities and their appurtenances, including, without
limitations, street, sewer, drainage, water, gas and sprinkler
improvements and facilities, provided (i) any such easement
does not unreasonably interfere with the use and enjoyment of
the Common Area or any Lot and (ii) the prior written consent
of Declarant shall be obtained so long as Declarant owns any
Lot. If ingress or egress to any Lot is through the Common
Area, any conveyance or encumbrance of such Common Area is
subject to said Lot Owner's easement. Each Owner, by
accepting a deed to a Lot, expressly grants to the Association
an irrevocable power of attorney for the purpose of granting
such easements in, on, over, through and across the Common
Area. The President or other duly designated officer of the
Association may execute, acknowledge and record in the
official records of the County a certificate stating that the
Board is the attorney in fact for the Owners for the purpose
of such grant and that such power of attorney is properly
exercisable in accordance with this Declaration. The acts of
• the Board in exercising its power of attorney shall be
conclusively binding on all Owners. The power of attorney
herein granted shall include authority to do such acts
incidental to such grant and to incur such expenses as may be
necessary or convenient in connection therewith. The Board,
by resolution, shall instruct the appropriate officers of the
Association to make, execute and deliver on behalf of any
Owner, as his interest may appear, any and all instruments,
certificates and documents, including but not limited to,
releases, waivers, deeds, escrow instructions and conveyances
of every kind and nature, as may be deemed necessary or
convenient for such dedication or grant.
5.02. Encumbrances. The Association shall have the
right to borrow money to improve, repair, restore and
reconstruct the Common Area for such purposes upon a sixty
seven percent (670) majority of the votes appurtenant to the
Lots.

ARTICLE 6

COMMON AREA AND LOT MAINTENANCE
6.01. Maintenance by Association. The Association
shall repair and maintain the Common Area and any
improvements, utilities, facilities and entrance monument
located on the Common Area. The Association's maintenance
obligation shall arise upon the filing with the Association by
Declarant of a notice of completion of Common Area
improvements, or any portion thereof, and/or the commencement
of annual assessments against the Owners.
6.02. Maintenance by Owners. Each Owner, at all
times, shall maintain, repair and otherwise be responsible for
his Lot and the improvements thereon. Without limiting the
generality of the foregoing, and subject to the requirements
of Article 11.02 of this Declaration, an Owner shall be
responsible for replacement and reconstruction of improvements
on his Lot required because of damage or destruction by fire
or other casualty, and each owner shall maintain, repair and
replace the surface and subsurface drainage facilities and
appurtenances located on his Lot as may be necessary to
maintain good and proper drainage of the property and other
OFFICES OF real property in the vicinity, except for such facilities the
CRITZ, BLACK, maintenance of which has been assumed by the County or other
ROGERS & RUTH, P.A. governmental entity. If any Owner, after Notice and
CONCORD CHARLOTTE Opportunity for Hearing, fails to maintain, repair and replace
NORTH CAROLINA


such drainage facilities and appurtenances as required herein,
the Association, at the expense of such Owner, shall maintain,
repair or replace such drainage facilities and appurtenances
at the sole cost and expense of such Owner, and the Board,
without the vote or written consent of Members, may levy a
special assessment against such Owner to obtain reimbursement
therefor as provided in Article 9.06.
No building or other structure shall be placed or
permitted to remain on any Lot which may damage or interfere
with the use, maintenance, repair or replacement of such
drainage facilities and appurtenances and no Owner shall do
any work, construct any improvements, place any landscaping or
suffer the existence of any condition whatsoever which shall
alter or interfere with the drainage pattern for the Lots or
Common Area as established in connection with the approval of
the subdivision map or maps applicable to the Project by the
County, except to the extent such alteration in drainage
pattern is approved in writing by the Association and all
public authorities having jurisdiction. All such drainage
facilities and appurtenances shall at all times be accessible
to Declarant until the Project is completed and at all times
shall be accessible to the Association and all persons
installing, using, maintaining, repairing or replacing such
• drainage facilities and appurtenances. Declarant may from
time to time present for recordation in the official records
of the County instruments showing approximate locations of
subsurface storm drainage facilities and of subsurface
groundwater drainage facilities. If for any reason any such
instrument is not accepted for recording, Declarant may
deliver such instrument to the Association, and the
Association shall maintain the same as part of its permanent
records. In either event, each Owner shall be deemed to have
notice of the location of such drainage facilities as may be
shown in such instrument.
6.03. Negligence. The cost of repair or replacement
of any improvement to be maintained and kept in repair by the
Association, which repair or replacement is required because
of the act or omission of any Owner, shall be the
responsibility of and paid for by such Owner.
6.09. Right to Enter. After reasonable notice to the
occupant, the Association or its agents shall have access over
and upon any Lot when necessary in connection with any repair,
maintenance, or replacement of improvements for which the
Association is responsible or for the enforcement of this
Declaration, and each Owner shall accept title to his Lot
subject to such right of access of the Association or its
agents.

ARTICLE 7
USE RESTRICTIONS
In addition to the restrictions set forth in Article 11
below, the following apply to the Project:
7.01. Residential Use. Except as otherwise provided
in this Declaration, each Lot shall be used solely for the
construction and occupancy of a residence for a single family
and for no other purpose. Except as may be otherwise provided
in this Declaration, no Owner shall use or cause or permit his
Lot to be used for any business, commercial, manufacturing or
mercantile use or purpose; or for any other nonresidential use
or purpose. No structure shall be erected, altered, placed or
permitted to remain on any Lot exceeding two and one half (2
1/2) stories in height, and a private garage for not more than
three (3) cars and other out buildings incidental to
residential use of Lot.

7.02. Unlawful Activity. No unlawful activity shall be conducted on any Lot or in any other part of the Project. Nothing shall be done within the Project that is an unreasonable annoyance, inconvenience or nuisance to the residents of the Project or that unreasonably interferes with the quiet enjoyment of occupants of Lots. No doorways, walkways or streets shall be obstructed in any manner which would interfere with their use for ingress or egress in the event of fire, earthquake or other emergency.

7.03. Parking. Unless otherwise permitted by the Rules and Regulations, no boat, trailer, recreational vehicle, camper, camper truck or commercial vehicle shall be parked, stored or left on any part of the Common Area. Any automobile, motorcycle or truck shall be parked, stored or left within the paved driveways or within the garage located upon the Lot, except to the extent either is already occupied to capacity, in which case such vehicle may be parked temporarily in the street but no more than 48 consecutive hours. This restriction shall not apply to sales trailers, construction trailers, or other vehicles which may be used by Declarant and its agents and contractors in the conduct of their business prior to Completion of Sales. No boat, truck, trailer, pre manufactured home, camper, recreational vehicle or tent shall be used as a living or dwelling area within the Project. No repairs to or maintenance of any automobile or other vehicle shall be made or performed on any driveway or in any garage within the Project, except in the case of emergency and except as may be permitted by the Rules and Regulations. No unlicensed vehicles may be left on a Lot.

7.04. Signs. One sign of not more than five (5) square feet, advertising a Lot for sale or rent, may be placed by the Owner on his Lot in such manner that it will be visible from outside the Lot. The prohibitions in this section shall not apply to Declarant or its agents, who.may erect such signs as Declarant deems desirable to promote the sale of Lots.

7.05. Antennas. Except as may be permitted by the Board or the Architectural control committee, no Owner shall construct, install, erect or maintain any television or radio pole, antenna, aerial, dish, tower or support thereof upon any Lot or improvement thereon.

7.06. Laundry. No laundry or wash shall be dried or hung upon the exterior of any residence, or at any place on, or within the boundaries of, any Lot visible within the Project from outside such Lot.

7.07. Fences. No fence or wall shall be erected on any building Lot closer to the street than the side street setback or the front of the building facade except for temporary decorative fencing installed by the builder on a model home, or except for non connective landscape fencing as part of the streetscape elements, which in any event must be approved by the Architectural Review Committee as provided in Article 11. Perimeter fencing and privacy fencing around patios, decks, or pools may not exceed five (5) feet in height. Chain link or other metal fencing is expressly prohibited, except that "mesh type" or "rabbit guard" wire inside otherwise permitted fencing may be used to contain animals within the yard with the approval of the Architectural Control Committee. Use of non perimeter fencing for pet containment shall also require the approval of said Committee.

7.08. Pets.

(A) No animals shall be raised, bred or kept on any Lot or the Common Area, except that dogs, cats, or other household
pets may be kept or maintained provided that they are not kept

or maintained for commercial purposes. The number of
household pets generally considered to be outdoor pets, such
as dogs, cats, et cetera, shall not exceed three (3) in number
except for newborn offspring of such household pets which are
under nine (9) months of age. No animal shall be allowed if
such animal constitutes an unreasonable annoyance,
inconvenience or nuisance to any other Owner. If the Board
receives any complaint that an animal constitutes an
unreasonable annoyance, inconvenience or nuisance, the Board
shall afford the Owner of such animal Notice and Opportunity
for Hearing, and if the Board finds that such animal
constitutes an unreasonable annoyance, inconvenience or
nuisance, the Board may require that such animal be removed
from the Project.
(B) The Board may adopt Rules and Regulations concerning
animals which are more restrictive than the provisions of this
Declaration, including rules requiring that all animals be
kept on a leash when in the Common Area and that animals be
restricted to designated areas within the Common Area and that
Owners are responsible for cleaning up any mess that a pet
creates within the Common Area. The Board may adopt a rule
prohibiting certain pets, which is more restrictive than the
provisions of this Declaration, except that such rule shall
not apply to animals residing in the Project at the time such
rule is adopted. In any event, the Board at any time may
require that any animal found to be an unreasonable annoyance,
inconvenience or nuisance be removed as provided in Article
7.08 (A) .
7.09. Trash and Vegetation. No trash, rubbish,
garbage or other waste material shall be kept or permitted
upon any Lot or the Common Area, except in sanitary containers
located in an appropriate area screened and concealed from
view. No weeds, vegetation, rubbish, debris, garbage, waste
materials or materials of any kind whatsoever shall be placed
or permitted to accumulate on any Lot or any portion of the
Project which would render it unsanitary, unsightly,
offensive, or detrimental to any property in the vicinity
thereof or to the occupants of any property in such vicinity.
Grass, hedges, shrubs, vines and mass planting of any type on
any Lot or any portion of the Project shall be kept trimmed
and shall at regular intervals be mowed, trimmed and cut so as
to appear neat and attractive. Trees, shrubs, vines and
plants which die shall be promptly removed.
7.10. Nuisance. No noxious or offensive activity
shall be carried on in or upon any Lot or the Common Area nor
shall anything be done thereon which may be or become an
unreasonable annoyance, inconvenience or nuisance to the
residents of the Project or unreasonably interferes with the
quiet enjoyment of occupants of Lots. No Owner shall permit
anything to be done or kept on his Lot which would result in
the cancellation of insurance on any other residence or any
part of the Common Area or which would be in violation of any
law.
7.11. Temporary Structures. Except as may be
otherwise provided in this Declaration, no residence of a
temporary nature shall be erected or allowed to remain on any
Lot, and no trailer, shack, tent, barn, detached garage, or
any other building of a similar nature shall be used as a
residence on any Lot, either temporarily or permanently.
7.12. Accessory Structures. No metal carport, free
standing metal garage, free standing metal utility building or
other accessory structure shall be erected on any Lot or
attached to any residence located on the Lot. However, one (1)
wooden utility building or noncommercial greenhouse of the
same architectural style or design as the residence may be

located in the rear one quarter (1/4) of any Lot, and in a manner so that it is directly behind the residence as viewed from a point on a line of sight perpendicular to the street. Such structure shall not exceed 200 square feet.

7.13. Unintentional Violations. In the event of the unintentional violation of any of the building line restrictions set forth herein, Declarant reserves the right, by and with the mutual written consent of the Owner of such Lot, to change the building line restriction set forth in the instrument, provided however, that such changes shall not be in violation of any provisions of the zoning provisions of the appropriate governmental authority.

7.14. Above Ground Pools. No above ground pools shall be erected or installed on a Lot.

7.15. Driveways and Sidewalks. The driveway and sidewalks on a Lot shall be constructed of concrete, or such other material as may be approved by the Architectural Control Committee.

7.16. Exercise and Recreational Equipment. All swing sets, tree houses, play houses, basketball goals and similar

• equipment must be located within building setback lines, and must otherwise meet with the approval of the Architectural Review Committee as to design, construction, materials, etc. Skateboard ramps are specifically not permitted.

7.17. Reconstruction. Any building on any Lot which is destroyed in whole or in part by fire, windstorm, flood or other Act of God must be rebuilt, or all debris from such building removed and the Lot restored to the condition it was in prior to commencement of construction of such building with reasonable promptness; provided, however, that any such reconstruction must be commenced within. six (6) months from the date of such destruction or if no reconstruction is to occur, then all such debris must be removed and the Lot restored to its prior condition within six (6) months of such destruction.

7.18. Subdivision. No Lot shall be subdivided or its boundary lines changed without the written consent of the Declarant. However, the Declarant hereby expressly reserves to itself, its successors and assigns, the right to replat any two (2) or more Lots shown on the Maps of the Properties provided that no Lot originally shown on any Map is reduced by more than 20% of its original size.

7.19. Leasing. No building on any Lot may be leased except in accordance with rules and regulations promulgated by the Association.

7.20. Interval Ownership. No Owner may lease, deed, sell, convey, or otherwise transfer his Lot under any timesharing or interval ownership arrangement.

7.21. Hazardous Activities. Nothing shall be done or kept on any Lot or in the Common Area which will increase the rate of insurance on the Common Area or any other Lot without the prior written consent or the Board of Directors. No Owner shall permit anything to be done or kept on his Lot or in the Common Area which would result in the cancellation of insurance on any part of the Common Area, or which would be in violation of any law .

7.22. Regulations. Reasonable regulations governing
the use of the Common Area and external appearance of all

structures erected on the Lots may be made and amended from

time to time by the Board of Directors of the Association;

94

provided, however, that all such regulations and amendments thereto shall be approved by a majority vote of the Members before the same shall become effective. Copies of such regulations and amendments thereto shall be furnished to each Member by the Association upon request.

7.23. Declarant(s) Rights. Notwithstanding anything to the contrary contained in this Article or elsewhere in this Declaration, each Declarant, its agents, employees and contractors, shall not be restricted or prevented by this Declaration from doing, and each Declarant, its agents, employees and contractors, shall have the right to do, such things or take such actions as they deem necessary, advisable or convenient for completion and improvement of the Project as a residential community and for the sale, rental or other disposition of Lots in the Project. In the event of any conflict between two or more Declarants, the party who at that time owns the largest number of Lots will be the prevailing party. The rights of each Declarant, its agents, employees and contractors shall include, without limitation:

(A) The right and easement of ingress in, over and upon the Common Area for the purpose of performing on any part or parts of the Project acts deemed necessary, advisable or convenient for the completion and improvement of the Project as a residential community and for the sale, rental or other disposition of Lots;

(B) The right to erect, construct, maintain, demolish or remove structures and other improvements on any Common Area as Declarant deems necessary, advisable or convenient for the completion and improvement of the Project as a residential community and for the sale, rental or other disposition of Lots; and

(C) The right to use Lots and improvements owned by Declarant as models, sales offices and contractor's offices and to construct and display promotional, informational and directional signs and other sales aids on or about any portion of the Project.

7.29. Right to Enter. Any governmental agency, including, but not limited to the County, its agents, and employees, shall have the right of immediate access to the Common Area at all times if necessary for the preservation of public health, safety and welfare.

ARTICLE 8
MEMBERSHIP AND VOTING RIGHTS

8.01. Governing Body. The Association shall be the governing body for all Owners with respect to the management, administration, maintenance, repair and replacement of the Project, as provided by this Declaration and the Bylaws.

8.02. Membership. Membership in the Association shall be composed of and limited to Owners. Each Owner, including Declarant, shall automatically be a Member of the Association and entitled to vote as set forth below. Membership shall be appurtenant to and may not be separated from ownership of a Lot. Upon termination of ownership, an Owner's membership shall automatically terminate and be automatically transferred to the new owner of the Lot.

8.03. Voting. The Association shall have two classes of voting membership:

OFFICES or
CRITZ, BLACK, Class A. Class A Members shall be all Owners with the

ROGERS & RUTH. RA. exception of Declarant and any Builder (s) ; provided, however,
CONCORD CHARLOTTE that Declarant shall become a Class A Member when its Class B

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BOOK 1086
PAGE 95
J

membership ceases as provided hereinafter. Class A Members
shall be entitled to one (1) vote for each Lot owned. When
' more than one person holds an ownership interest in any Lot,
all such persons shall be Members, but no more than one vote
shall be cast with respect to any Lot. The vote for any such
Lot shall be exercised as the Members holding an interest in
such Lot determine among themselves. In the event of
disagreement, the decision of Members holding a majority of
interest in such Lot shall govern. Unless otherwise notified
by a co owner as to a dispute between the co owners regarding
their vote prior to the casting of that vote, the vote of any
co owner shall be conclusively presumed to be the majority
vote of the Owners of that Lot.
Class B. Class B Member shall be the Declarant and any
Builder(s), and shall be entitled to three (3) votes for each
Lot owned; provided that Declarant's Class B membership shall
cease and be converted to Class A membership on the happening
of either of the following events, whichever occurs earlier:
(i) the conveyance by Declarant of seventy five percent (75%)
of all Lots in the Project, or (ii) ten (10) years after the
first Lot is conveyed to an Owner for use as a residence.
8.04. Commencement of Voting Rights. Voting rights
• attributable to an ownership interest shall not vest until the
assessment against that interest has been levied by the
Association as provided in Article 9; provided, however, that
voting rights shall be immediately vested with respect to
amendments to this Declaration pursuant to Article 14.08.
8.05. Declarant's Voting Rights. No requirement for
the approval of a prescribed majority of the Voting Power of
Members of the Association other than Declarant for action to
be taken by the Association is intended to preclude Declarant
from casting votes attributable to Lots owned by Declarant.

ARTICLE 9
COVENANTS FOR ASSESSMENTS

9.01. Covenant to Pay Assessments; Lien. Declarant, for each Lot owned by Declarant, hereby covenants to pay, and every Owner of any Lot by acceptance of a deed therefor, whether or not it shall be so expressed in such deed, covenants and agrees to pay, to the Association such regular annual assessments or charges and such special assessments or charges as may be levied by the Association pursuant to the provisions of this Declaration. The amount of any such annual or special assessment plus any other charges thereon, such as interest, late charges and costs (including attorneys' fees), as such may be provided in this Declaration, shall be and become a lien upon the Lot assessed when the Association causes to be recorded in the official records of the County a notice of assessment, which notice shall state:

(A) The amount of such assessment and such other charges thereon as may be authorized by this Declaration:

(B) A description of the Lot against which the same has been assessed; and

(C) The name of the record owner of the Lot assessed.

Such notice shall, be signed by an authorized
representative of the Association. Upon payment of such
assessment and charges in connection with which such notice
has been so recorded, or other satisfaction thereof, the

OFFICES I~ a. Association, at the Owner's cost and expense, shall cause to

CRITZ, BLACK, be recorded a further notice stating the satisfaction and the
ROGERS & RUTH. P A. release of the lien thereof. The lien provided for herein

CONCORD CHIIPLOTTC ~~ shall be prior to all other liens recorded subsequent to the

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BOOK 1086 PAGE

recordation of such notice of assessment. Unless sooner
satisfied and released or the enforcement thereof initiated as
hereinafter provided, the lien shall expire and be of no
further force or effect one (1) year from the date of
recordation of the notice of assessment. The one year period
may be extended by the Association for a period not to exceed
one (1) additional year by recordation of a written extension
thereof. The lien may be enforced by foreclosure in accordance
with North Carolina law, or in any other manner permitted by
law. The Association shall have power to purchase the Lot at
a foreclosure sale and to hold, lease, mortgage and convey the
same.
9.02. Personal Obligation. Each regular annual or
special assessment, together with any late charges, interest,
collection costs and reasonable attorneys' fees, shall be the
personal obligation of each person or entity, other than any
Mortgagee, who held an ownership interest in the Lot at the
time such assessment was levied. If more than one person or
entity held an ownership interest in the Lot at such time, the
personal obligation to pay such assessment or installment
respecting such Lot shall be both joint and several. No Owner
may exempt himself from payment of assessments or installments
by waiver of the use or non use of common facilities within
the area or of any other portion of the Common Area or by
abandonment or leasing of his Lot.
9.03. Use of Assessments. Regular annual or special
assessments paid by Declarant and other Owners shall be used
to pay for operation, maintenance, preservation, enhancement,
repair and improvement of the Common Area, other purposes
reasonably related to the foregoing, and to promote the
recreation, health, safety and welfare of the Owners. In
addition, such assessments shall be used to pay the cost of
administration of the affairs of the Association, including
payment of applicable taxes, and for the preservation of the
Association's existence, to the extent properly allocable to
the performance and exercise of the Association's duties and
powers under this Declaration. The foregoing is intended as
an authorization to the Association and shall not be construed
to require expenditure of Association funds for any particular
purpose.
Such expenditures may reasonably include the following:
(a) to maintain all roads constructed within the Common
Areas to the standard of maintenance which would be
required by the State of North Carolina before it
will accept such roads for maintenance; provided
that this provision does not require that the width
of the road rights of way be the width required as
set forth before such roads would be accepted by
the State of North Carolina for maintenance;
(b) to maintain all lighting of roadways within the
Development not maintained by government bodies and
pathways within the Common Area;
(c) to maintain all pathways in the Common Areas in an
easily passable condition, free from fallen trees,
undergrowth, and other obstructions; and to keep
all dead, diseased or decaying trees, shrubs and
bushes removed from such areas and to replace such
items with new trees, shrubs and bushes;
(d) to maintain all tennis courts, swimming pools, club
OFFICES OF house and related facilities located in the Common
CRITZ, SLACK. Areas in accordance with the highest standards for
ROGERS & RUTH. PA. private tennis courts, swimming pools and related
CONCORD CHARLOTTE ~)facilities;

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.. BOOK Q9 PACE 97

(e) to keep all parks and picnic areas in the Common Areas clean and free from debris and to maintain all picnic tables and other amenities in a clean and orderly condition, and to maintain the landscaping therein in accordance with the highest standards for private parks including any necessary removal and replacement of landscaping;

(f) to maintain all parking areas (for automobiles or otherwise) located in the Common Areas free from debris and in good repair;

(g) to comply with all agreements with (whether of the Declarant or the Association), or statutes, ordinances, rules or regulations of, Cabarrus County or the State of North Carolina (or any agency thereof) respecting the use of any Common Areas (including the use of any wastewater treatment facility);

(h) to provide such security as may be deemed reasonably necessary for the protection of the Common Areas from theft, vandalism, fire and damage from animals;

(i) to maintain the entrance area to the Development in a clean and orderly condition and to maintain the landscaping thereon (including signage, groundcover, shrubs and flowers) to the standard established by Declarant at completion of the entrance area;

(j) to maintain all other landscaping in the Common Areas to the standard established by Declarant at completion of such landscaping;

(k) to pay all ad valorem taxes levied against the Common Areas and any property owned by the Association;

(1) to pay the premiums on all hazard insurance carried by the Association on the Common Areas and all public liability insurance carried by the Association pursuant to the Bylaws; and

(m) to pay all legal, accounting and other professional fees incurred by the Association in carrying out its duties as set forth herein or in the Bylaws.

9.04. Maximum Annual Assessment. Beginning with the conveyance of the first Class A Lot, the maximum annual assessment shall be $280 for each Class A Lot in the Development and $100 for each Class B Lot in the Development.

(a) The maximum annual assessment for Class A and Class B Lots established above may be increased, effective January 1 of each calendar year following the conveyance of the first Lot by the Declarant to another Owner, without a vote of the membership, provided that the percentage of any such increase does not exceed the percentage increase, if any, in the Consumer Price Index for Urban Wage Earners and Clerical Worker's, all cities, all items, published by the United States Department of Labor, over the 12 month period ended on October 31 immediately preceding that January 1.

OFFICES or

CRITZ, BLACK, (b) From and after the conveyance of the first Class A
F400GERS 8 RUTH. r A. Lot, said maximum annual assessment for Class A and
CONCORD CHARLOTTE ~~ Class B Lots may be increased without limitation if

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e o 1086 " q 98

such increase is approved by a sixty seven percent

' (67%) majority of the votes appurtenant to the

Lots. Such voting may be represented in person or
by proxy at a meeting duly called for this purpose.

(c) The Board of Directors may fix the annual assessments at amounts not in excess of the maximum.

9.05. Special Assessments. In addition to the regular annual assessments authorized herein, the Board may levy, in any assessment year, a special assessment against all Owners applicable to that year only for the purpose of defraying in whole or in part the cost of any construction, reconstruction, repair or replacement of capital improvements and related fixtures and personal property on or comprising a part of the Common Area; provided, however, any such assessment shall be a part of the Common Area; provided, however, any such assessment shall be in the ratio of three (3) to one (1) for Lots owned by Class A Members and Class B Members, respectively, as provided in Article 9.04 above, and further provided in any fiscal year, special assessments which exceed five percent (5%) of the budgeted gross expenses of the Association for that fiscal year may not be levied without a sixty seven percent (67%) majority of the votes appurtenant to the Lots.

9.06. Assessment as Remedy. After Notice and Opportunity for Hearing, the Board, without the vote or written consent of Members, may levy a special assessment against an Owner as remedy to reimburse the Association for costs (including attorneys' fees) incurred in bringing the Owner, his lot or his residence into compliance with the provisions of this Declaration, the Bylaws or the Rules and Regulations.

9.07. Allocation of Assessments. Except as otherwise provided in this Declaration and except for the reduced assessments on Lots owned by Class B Members, all regular and special assessments shall be levied equally against all Owners.

9.08. Commencement of Assessments. The regular annual assessments provided for herein shall commence as to all Lots in Phase I/weddington on the first day of the month next following the conveyance of the first Lot with a dwelling to a purchaser, other than a successor Declarant, for use as a residence. The first assessment year shall be the period commencing on the date regular annual assessments commence and ending on the December 31 next following. The regular annual assessment for the first assessment year shall be prorated from the amounts fixed by the Board for a full twelve

month year, based on the number of months to be contained in the first assessment year. Subsequent assessment years shall be each successive calendar year; provided, however, that at any time the Board may change the assessment year to correspond to a fiscal year selected by the Board. Assessments of Lots within each Phase of the Project which is annexed in accordance with the provisions of Article 13 below shall commence on the first day of the month next following the ,conveyance of the first Lot with a dwelling to a purchaser, other than a successor Declarant, for use as a

residence.

11 1,

9.09. Revised Assessments. Subject to the provisions
of Article 9.04, if at any time during the course of any year
OFFICES OF the Board shall deem the amount of the regular annual

CRITZ, BLACK. assessment to be inadequate or overadequate by reason of a
ROGERS Q RUTH. v A. revision of its estimate of either expenses or income or
CONCORD CNAIRLOTTC otherwise, the Board shall have the right, at a regular or

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.. . . . BMa086 PAGE 0

special meeting, to revise the regular annual assessment for the balance of the assessment year. Any such revised assessment shall become effective on the first day of the month next following the date of adoption, and additional amounts payable shall be due (or refunds of overages shall be made by the Association) at such time as determined by the Board.

9.10. Delinquent Assessments; Fines. Any assessment not paid within ten (10) days after the due date shall be delinquent. The Board may require that any delinquent assessment bear a late charge to cover administrative expenses incurred as a result of the late payment of the assessment. A late charge in the amount of Twenty Five Dollars ($25.00) per quarter shall be imposed on delinquent assessments and fines levied as provided in Article 9.09.

No charge may be imposed more than once each quarter for the delinquency of the same payment, provided, however, that the imposition of a late charge on any delinquent payment shall not eliminate or supersede charges imposed on prior delinquent payments. When an assessment is paid more than ten (10) days after the due date of the assessment, late charges shall accrue from the first day following the due date of the assessment. The association may bring legal action against the Owner personally obligated to pay a delinquent assessment or fine and, after Notice and Opportunity for Hearing, the Association may suspend a delinquent Owner's membership rights in the Association while the assessment or fine remains unpaid. In any legal action to enforce payment of an assessment or fine, the Association shall be entitled to recover interest, costs and reasonable attorneys, fees.

9.11. Subordination of the Lien to Mortgages. T h e lien of the assessments provided for herein shall be subordinate to the lien of any first mortgage. Sale or transfer of any Lot shall not affect the assessment lien. However, the sale or transfer of any Lot pursuant to mortgage foreclosure, or any proceeding in lieu thereof, shall extinguish the lien of such assessments as to payments which became due prior to such sale or transfer. No sale or transfer shall relieve such Lot from liability for any assessments thereafter becoming due or from the lien thereof.

ARTICLE 10
INSURANCE

10.01. Duty to Maintain Insurance.

(A) The Association shall have the duty and the authority to maintain fire and extended coverage casualty insurance on the Common Area in an amount not less than the full insurable value thereof (based upon current replacement cost), and liability insurance with limits in amounts adequate, under standards in the insurance industry existing from time to time, to protect the Association and the Owners in the event of property damage, personal injury or death occurring in or about the Project. The Board shall have the authority to settle or enforce on behalf of the Association and on behalf of the Owners, by legal action or otherwise, any claim arising under any insurance carried by the Association.

(B) All policies of insurance carried by the Association shall include a waiver of subrogation if such waiver can be obtained, unless otherwise provided in the Rules and Regulations.

OFFICES 01
CRITZ, BLACK. 10.02. Proceeds of Insurance. The proceeds of

ROGERS& RUTH, P.A. casualty insurance carried by the Association shall be paid as
CONCORD CNARLOttf follows

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. BOOK 1086 r AGE 100

The proceeds shall be paid to and held by the Association as trustee for the Owners, Declarant and Mortgagees for disbursement in accordance with the provisions of this Declaration.

Except as otherwise provided herein, casualty insurance proceeds shall be used for repair, replacement or reconstruction to the extent required to effectuate repair, replacement or reconstruction.

ARTICLE 11
ARCHITECTURAL CONTROL

For purposes of this Article 11, the Declarant shall function as the Architectural Control Committee (the "Committee") so long as Declarant is a Class B Member of the Association. After the termination of the Declarant's Class B Membership, the Board of Directors of the Association shall appoint the members of the Committee to carry out the functions set forth in this Article.

11.01 Definitions. For purposes of this Article 14, the following terms shall have the following meanings unless the context clearly requires a different meaning:

(a) "accessory building" means every detached garage, carport, tool shed, storage or utility building, wellhouse, guest quarters, cabanna or other similar building constructed on a Lot which is not a dwelling.

(b) "buildings" mean accessory buildings and dwellings.

(c) "dwelling" means a building constructed for single family residential use but excluding guest quarters or "accessory building"; and

(d) "improvements" or "structures" mean buildings and all walls, fences, decks, patios, planters, terraces, swimming pools, tennis courts, or anything else constructed or placed on a Lot.

11.02 General Guidelines. Listed hereinafter are guidelines applying to Phase I/Weddington of the Development which are not intended to be absolute and complete guidelines, but address certain critical areas which will be carefully considered by the Architectural Review Committee in the approval or disapproval of an Owner's plans and specifications:

(a) Each dwelling constructed on a Lot shall contain at least 1,500 square feet of fully enclosed and heated floor area exclusive of roofed or unroofed porches, decks, patios, terraces, basements, porches, overhangs, attached garages and accessory buildings.

(b) No structures (except fences or walls approved by the Committee) may be erected above grade except within the following setbacks:

Front Yard 30 feet
Side Yard 6 feet [except 10 feet as to
lots shown on the Map of
Weddington Road Lots (Map Book
25, Page 94)]
Side Yard Corner Lot 20 feet
OFFICES or Rear Yard 20 feet

CRITZ, BLACK.
ROGERS R RUTH, PA. The above setbacks apply to Phase I/Weddington of the
CONCORD CHARLOTTE Development. They also apply to any Additional Property

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. _ . . . BOOK 086 PACE 01

unless other setbacks are specified in the Supplementary Declarations of Covenants, Conditions and Restrictions applying to such Additional Property.

(c) The Committee has the right to decide in its sole and absolute discretion the precise site and location of any structure placed upon any Lot; provided, however, that the Owner shall be given the opportunity to recommend a specific site for such structure.

(d) Home design shall be Williamsburg, Georgian and other similar traditional designs, though transitional designs will be acceptable but judged critically by the Committee as to design relationship to site topography and vegetation and other surroundings.

(e) All structures constructed or placed on any Lot shall be built of substantially new materials and no used structure shall be relocated or placed on any such Lot. Dwellings shall have a double attached or detached garage.

(f) All structures approved by the Committee must be completed within one (1) year after the receipt of such approval; provided, however, the Committee may waive this requirement if construction delays have been caused by strikes, war, fire, acts of God, material shortages or other events which render the completion of construction within such time impossible.

(g) All driveways, turning areas and parking areas shall be concrete surfaced (as determined by the Committee) and the surfacing must be completed prior to the occupancy of any dwelling on the lot.

(h) Walkways leading to entrances and from the principal dwelling to other buildings on the Lot shall be constructed of materials as determined by the Committee.

(i) No fence or wall of any nature (other than fences or walls for landscaping purposes approved by the Committee) shall be maintained or permitted on any Lot from the front and side street line on each Lot to the residential structure thereon. Fences constructed from the residential structure to the rear line of the Lot shall be constructed of wood or brick and shall not exceed a height of 60 inches (no chain link, concrete block, or exposed wire fences of any nature shall be allowed within the Development).

(j) Minimum landscaping for each structure shall including seeding of all lawn areas and/or maintained natural areas and appropriate foundation plantings.

(k) Each Lot shall have a mailbox. The design, material used and location of such mailbox shall be approved by the Committee.

11.03 Approval of Plans, Specifications and Construction. In addition to the requirements imposed by all applicable governmental agencies governing the issuance of building permits and certificates of occupancy, no structure shall be erected on any Lot without the approval of the Committee as provided in this section. Provided, however, that in the case of Niblock Development Corporation ("NDC"),

"ICES or the Committee reserves the right to preapprove a series of
CRTIZ, BLACK, plans and color boards submitted by NDC.

ROGERS Q RUTH. PA.

CONCORD CHARLOTTE (a) Prior to commencing any construction on a Lot

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BOOK 1086 , PAGE 102

and, in any event, no later than one (1) year after the
date of purchase of the Lot, the Owner thereof shall
submit to the Committee all building plans and
specifications (the "Plans") covering such construction.
The Plans shall contain the following: (i) foundation
plans, (ii) floor plans of all floors, (iii) elevation
drawing of all exterior walls, (iv) roof plan, (v) plot
plan showing location and orientation of all structures
(including accessory buildings) proposed to be built on
the Lot with the setback lines set forth in 11.02 above
drawn in, (vi) the square footage of the proposed
structures, (vii) the location of and materials for any
driveway, (viii) samples or appropriate description of
materials and exterior colors.
(b) At the time of the submission of the Plans, the
Owner shall submit the name of the proposed builder, if
the Owner at such point in time is other than the
Builder, who shall be first approved by the Committee
prior to use by the Owner. The Owner shall also submit
samples of all proposed building materials as may be
required by the Committee.
(c) The Committee shall have the absolute and
• exclusive right to refuse to approve the proposed Plans
or make recommendations for modifications in the Plans.
In passing upon such Plans and samples, the Committee may
take into consideration the suitability and desirability
of the proposed construction and the proposed materials
to the Lot involved, the quality of the proposed
workmanship and materials, and the harmony of the
external design with the natural features and the
existing structures of the surrounding neighborhood and
the appearance of such proposed improvements as viewed
from neighboring Lots. If the Committee approves the
construction of such improvements, it shall issue a
certificate evidencing such approval.
(d) Upon completion of approved construction, the
Committee shall inspect the construction to insure that
the approved Plans and samples were complied with by the
Owner. No structure may be occupied or used until the
issuance by the Committee of a certificate of compliance.
The certificate of compliance shall be issued by the
Committee without fee; provided, however, that in the
event that the Committee's first inspection of the
construction reveals deviation or deficiencies from the
approved Plans and samples, the Committee may charge a
fee of $50.00 for every subsequent inspection which is
necessary to insure compliance with the approved Plans
and samples. Any such fee must be paid before the
issuance of the compliance certificate.
11.04 Landscaping. Each Owner shall have completed
lawnseeding and foundation plantings in and around the
structure within two (2) months of issuance of the completion
certificate for the structure as provided in 11.03 (d) of this
Article; provided, however, the Committee may waive this
requirement if delays have been caused by reason of any of the
events described in 11.02 (f) of this Article.
11.05 Approval of Changes in Structure. After
completion of approved co 'Struction and issuance of compliance
certificate as provided 'in 11.03(d) of this Article, no
material change shall be made to any structure on a Lot
without the approval of the Committee. Prior to making any
OFFICES or material changes to any structure on a Lot [such changes to
CRITZ, BLACK, include without limitation any addition to the existing
ROGERS 6 RUTH. RA. structure, any construction or addition of any accessory
CONCORD CHARLOTTE building or any change (including changes in color) in the

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. : . 640,96 PAGE 103

exterior wall covering], the Owner shall submit to the Committee all plans and specifications covering such proposed change. The Committee shall have the absolute and exclusive right to refuse to approve the proposed plans and shall notify the Owner of its approval or disapproval within thirty (30) days of receipt of the plans from the Owner.

11.06 Remedies in the Event of Non Compliance.

(a) In the event the Owner has not submitted Plans to the Committee within the time period prescribed in 11.03(a) of this Article or in the event the Committee (acting reasonably and in good faith) fails to issue the approval required by 11.03 (c) of this Article, the Declarant shall have the right, but shall not be obligated, to repurchase the Owner's Lot at the original price paid for the Lot by the Owner. The closing of any such repurchase by the Declarant shall occur within thirty (30) days of the mailing of written notification to the Owner advising the Owner of the event hereunder giving rise to such right of repurchase. The Owner shall tender all such instruments (including a general warranty deed) as may be necessary to close such repurchase and shall otherwise cooperate with the Declarant.

(b) In the event the Owner has not completed construction of any structure within the time period prescribed in 11.02 (f) of this Article or in the event the Owner has not completed the landscaping in and around the structure within the time period prescribed in 11.04 of this Article, the Declarant shall have the right, but shall not be obligated, to cause such construction or landscaping to be completed on behalf of the Owner in accordance with the Plans and all costs and expenses of the Declarant or its agents, employees or contractors in so completing the construction or landscaping shall constitute a lien on the Owner's Lot until paid or discharged with the written consent of the Declarant. If any such costs or expenses associated with completion of a structure on the Owner's Lot are not paid to Declarant by the Owner within thirty (30) days after completion of the structure, Declarant shall have the right, but shall not be obligated, to foreclose on the lien created hereby and cause the Owner's Lot together with any improvements thereon to be sold and to receive first from the net proceeds of sale (net of all direct costs of selling the Lot), its costs and expenses in completing any structure on the Owner's Lot.

11.07. Reconstruction. Any improvement on any Lot which is destroyed in whole or in part by fire, windstorm,. flood or other Act of God must be rebuilt, or all debris from

such improvement removed and the Lot restored to the condition it was in prior to commencement of construction of such improvement with reasonable promptness; provided, however, that any such reconstruction must be commenced within six (6) months from the date of such destruction or if no reconstruction is to occur, then all such debris must be removed and the Lot restored to its prior condition within six (6) months of such destruction.

ARTICLE 12

MORTGAGEE PROTECTION

12.01. Interpretation. In the event any provision of

this Article 12 is inconsistent with or contrary to any other
Cal 01 provision of this Declaration, the provisions of this Article
CRITZ, BLACK. 12 shall control.

70GERS 6 RUTH. P A.

CONCORD CHARLOTTE 12.02. Notices. Any Mortgagee of any Lot, by written

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. BOOK 1 0195 PAGE 104
notice to the Association setting forth the Lot encumbered,
the Owner thereof and the address to which notices may be
sent, may request and thereby be entitled to receive written
notice from the Association of (i) any default which is
outstanding for sixty (60) days or longer by the Owner of such
Lot in the performance of his obligations under or in
compliance with the provisions of this Declaration, the Bylaws
or the Rules and Regulations, (ii) any substantial damage to
or destruction of the Common Area, including the improvements
located thereon, or, if known to the Association, any
substantial damage to or destruction of a Lot, including the
improvements located thereon, and (iii) any proposed or
threatened taking by power of eminent domain of the Common
Area or any portion thereof or of any Lot or portion thereof.
12.03. Mortgagee's Right to Information. Upon written
request to the Association, a Mortgagee is entitled to: (1)
inspect the books and records of the Association during normal
business hours; and (2) receive an annual financial statement
of the Association within ninety (90) days following the end
of any fiscal year of the Project; and (3) receive written
notice of all meetings of the Association and to designate a
representative to attend all such meetings.
12.04. Damage and Destruction Rights. In the event of
substantial damage to or destruction of any Lot or
improvements to a Lot or any part of the Common Area no
provision of any document establishing the Project shall
entitle the Owner of a Lot or other party to priority over
such Mortgagee with respect to the distribution to such Owner
of any insurance proceeds.
12.05. Condemnation Rights. If any Lot or portion
thereof or the Common Area or any portion thereof is made the
subject matter of any condemnation proceedings or is otherwise
sought to be acquired by a condemning authority, no provision
of any document establishing the Project shall entitle the
Owner of a Lot or other party to priority over such Mortgagee
with respect to the distribution to such Owner of the proceeds
of any award or settlement.
12.06. Right of First Refusal. Any right given by an
Owner of a Lot to any third person to purchase such Lot before
it is offered for sale or sold to any other person (such right
commonly known as a "right of First refusal") shall not be
binding upon or enforceable against any Mortgagee acquiring
such Lot pursuant to exercise of remedies provided for in the
Mortgage, including foreclosure by judicial action or exercise
of a power of sale, or by acceptance of a deed or assignment
in lieu of foreclosure.
12.07. Subordination. No provisions contained in this
Declaration shall defeat or render invalid the lien of any
Mortgage which is made in good faith and for value. The lien
of the assessments provided for herein shall be subordinate to
the lien of any Mortgage recorded prior to the date any such
assessment becomes due. This subordination shall apply only
to assessments on a Lot which have become due and payable
prior to a sale or transfer of such Lot pursuant to a decree
of foreclosure or exercise of power of sale. Any Mortgagee
who acquires title to or comes into possession of a Lot
pursuant to exercise of remedies provided for in the Mortgage,
including foreclosure by judicial action or exercise of a
power of sale, and any purchaser at a foreclosure sale, shall
take the Lot free of any claims for unpaid assessments or
charges against the Lot which have accrued prior to the time
.I«. o. such Mortgagee or purchaser acquires title to or comes into
CRITZ, BLACK, possession of the Lot; provided, however, this exception shall
1OGERS &R RUTH. RA. not be applicable to any claim for assessments or charges
CONCORD CHARLOTTE levied by the Association against all Lots for the purpose of

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BOOK 1086 PAGE 105

recovering any revenue lost by reason of the nonpayment of
past due assessments upon such Lot; and provided further, that
except as otherwise provided in this section, all of the
limitations, restrictions, covenants, conditions, easements,
liens, charges, assessments, and equitable servitudes
contained herein shall be binding upon any Owner whose title
is derived through foreclosure sale, trustee's sale or
otherwise. Except as provided above, the sale, transfer or
conveyance of title to a Lot shall not relieve a selling Owner
from personal liability for any assessments which became due
and payable prior to such sale, transfer or conveyance, nor
relieve such Lot from a duly recorded lien for any such prior
unpaid assessment.
12.08. Payments by Mortgagees. Any Mortgagee, after at
least ten (10) days, prior written notification to the
Association of the items to be paid and the failure of the
Association within such time to make payment, may pay, alone
or in conjunction with other Mortgagees, delinquent taxes,
liens or assessments which may be or become a charge against
the Common Area, or any portion thereof, and any overdue
premiums on policies of fire and extended coverage insurance
for the Common Area and in the event of a lapse of such a
policy of insurance, may pay premiums to secure a new policy.
• In the event such payments are made, the Mortgagee making such
payment shall be entitled to immediate reimbursement from the
Association to the extent of the payment made.
12.09. Professional Management. In the event that
Declarant or the Association enters into any contract with any
person or entity to provide management or maintenance services
to the Project, such contract shall not exceed one (1) year
and shall provide that the Association shall have the right to
terminate the contract for cause upon thirty (30) days'
written notice and without cause upon ninety (90) days,
written notice, without payment of a termination fee.
ARTICLE 13
ANNEXATION

13.01. Right to Annex. Declarant shall have the right to annex to Phase I/Weddington and thereby bring within the scheme of this Declaration and subject to the jurisdiction of the Association part or all of the Additional Land, as well as such other contiguous property(ies) as may be later acquired. Annexation of additional property may be accomplished in Phases.

13.02. Procedure for Annexation. Any annexation shall be made by recordation of a Supplemental Declaration covering the real property to be annexed. The Supplemental Declaration shall describe the real property to be annexed and state that annexation is being made pursuant to this Declaration for the purpose of extending the jurisdiction of the Association to cover the Phase of the Project being annexed. The Supplemental Declaration may contain such complementary additions and modifications to the terms of this Declaration as may be necessary or desirable to reflect the different character, if any, of the Phase being annexed and as are not inconsistent with the general scheme of this Declaration. Annexation shall be effective upon recordation of the Supplemental Declaration and thereupon the real property described therein shall be subject to all of the provisions of this Declaration, to the extent made applicable by the Supplemental Declaration, and to the jurisdiction of the Association pursuant to the terms of this Declaration, the

.ICE. o. Articles and Bylaws.

CRITZ, BLACK.

ROGERS 6 RUTH. R A. 13.03. Annexed Property. Each Owner of a Lot in an
CONCORD CHARLOTTE ~~ annexed Phase automatically shall be a Member of the

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24

BOOK 1086 PAGE 106

Association and such Owners and annexed real property shall be

' subject to assessment by the Association for the benefit of

the Project or any part thereof. Assessments of Lots in an
annexed Phase shall commence upon the last to occur of: (a)
commencement of regular annual assessments for the Project,
and (b) the first day of the month next following the first
conveyance of a Lot in such Phase to a purchaser, as provided
in Article 9.08. The Association shall have the duties,
responsibilities and power set forth in this Declaration, the
Articles and Bylaws with respect to annexed real property.
Except as may otherwise be expressly provided in this
Declaration or any Supplemental Declaration, the Project shall
be managed and governed by the Association as an entirety.
Assessments collected from Owners in the Project may be
expended by the Association anywhere in the Project without
regard to the particular Phase, area or subdivision from which
such assessment came. All Owners shall have ingress and
egress to and from all the Common Area throughout the Project
and any Phase thereof and shall have use and enjoyment of any
recreational facilities and other amenities contained within
the Common Area throughout the Project, provided that any such
use shall be subject to the provisions of this Declaration,
any Supplemental Declaration, the Bylaws and the Rules and

Regulations.

• ARTICLE 14
MISCELLANEOUS PROVISIONS
14.01. Power to Settle Claims. The Board shall have
the power and authority to compromise, settle, release and
otherwise adjust claims, demands, causes of action and
liabilities in favor of the Association and the Owners, on
behalf of the Association and owners, as the case may be,
provided any such claim, demand, cause of action or liability
arises out of or relates to a condition or defect common to
all or a majority of the Lots or improvements constructed
thereon, or to the development, design, construction,
condition, repair or maintenance of or damage or injury to or
defect in the Common Area or part thereof, and the Association
shall have the right and the power to make and receive all
payments or other consideration necessary therefor or in
connection therewith. For such purposes, the Board shall be,
and hereby is, irrevocably appointed attorney in fact to act
on behalf of all Owners upon such terms and conditions and for
such consideration as may be approved by a majority of the
Board.
14.02. Independence of Provisions. The provisions of
this Declaration shall be deemed independent and severable.
Invalidation or partial invalidation of any provision of this
Declaration by judgment or court order shall not affect any
other provision of this Declaration, and the remaining
provisions shall remain in full force effect.
14.03. Notices. Notices shall be in writing and shall
be addressed as follows: (i) if to an Owner, to the address of
his Lot; (ii) if to Declarant, to Southern Land Equities,
Inc., 319 S. Sharon Amity Road, Suite 210, Charlotte, North
Carolina 28211; and (iii) if to the Association, to the
address of the Project. The Association may designate a
different address for notices by giving written notice of such
change of address to all Owners and to Declarant. Declarant
may designate a different address for notices by giving
written notice of such change of address to all Owners and to
the Association. Any Owner may designate a different address
for notices by giving written notice of such change of address
to the Association and to Declarant.
OFFICES or
CRITZ, BLACK, 14.04. Headings. The headings used in this
ROGERS a RUTH, P. A. Declaration are for convenience and reference only and the
CONCORD CHAIRLOTTL words contained therein shall not be held to expand, modify,

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25

BOOK 1086 PAGE 107

or aid in the interpretation, construction, or meaning of this Declaration.

14.05. Enforcement. The failure of any Owner to comply with the provisions of this Declaration, the Bylaws or the Articles shall entitle the Association, any Owner, or any of them, to maintain an action for the recovery of damages or injunctive relief or both, and such persons or entities, or any of them, shall have the right to enforce all limitations, restrictions, covenants, conditions, easements, liens, charges, assessments and equitable servitudes imposed by or pursuant to the provisions of this Declaration. Furthermore, the Association shall have the right, but not the obligation, to enter any Lot and undertake any necessary action in order to cure such Owner's default. All expense and cost incurred by the Association in curing such default shall be charged to the defaulting owner, shall be payable by such Owner to the Association immediately upon demand and shall constitute a lien on the applicable Lot until paid. Failure to enforce the provisions of this Declaration shall not be deemed a waiver of the right to do so thereafter. All remedies provided in this Declaration shall be cumulative and in addition to any other remedies available under law.

19.06. Equal Opportunity Housing. This Project provides equal opportunity housing. Each Lot sold shall be sold without regard to the race, creed, color, national origin, ancestry, religion, marital status, age or sex of the purchaser.

14.07. Exhibit. Exhibit A which is attached to this Declaration, is incorporated herein and made a part hereof by this reference.

14.08. Amendments. This Declaration may be amended by an instrument signed by a sixty seven percent (67%) majority of the votes appurtenant to the Lots.

Should the Veterans' Administration, the Federal National Mortgage Association, or the Federal Home Loan Mortgage Corporation subsequently delete any of their respective requirements which necessitate the provisions of this Declaration or make such requirements less stringent, the Board, without approval of the Owners, may cause an amendment to this Declaration to be recorded to reflect such changes.

14.09. HUD and VA Approval. If this Declaration has been initially approved by HUD or VA in connection with any loan programs made available by HUD or VA and any loans have been made which are insured or guaranteed by HUD or VA, then as long as there is a Class B membership, the dedication of Common Areas, the annexation of Additional Land, and the amendment of this Declaration will require the prior approval of HUD or VA as applicable, unless the need for such approval has been waived by HUD or VA.

IN WITNESS WHEREOF, the undersigned have executed this Declaration as of the date first above set forth.

DECLARANT:

SOUTHERN LAND EQUITIES, INC.

``' J eph. Shambo, J

P esident
ices b• ... , f ` TEST `1..~

C.. c, BLACK,

ROGERS 6 RUTH. R A. 1, [ •, , rsha R. Shdtnb0, Secretary
CONCORD CHARLOTTE `corporate seal)

NORTH CAROLINA

26

.

. BOOK 1086 PAGE 108

The parties hereinafter appearing, as present Owners of lots within Phase I/Weddington, are executing this Declaration for the purpose of consenting hereto and submitting to the provisions, regulations, and general content hereof.

NIBLOCK DEVELOPMENT CORP.

i

Vice President

ATTEST:

~' : Assistant Secret y
.(corporate seal)

1.~,r (,,( c:(. ~ n: ~~ (SEAL)
Harold L. Smith

~.~1 Cv`I vl~ ~P. '1S3 )Ut1(1 (SEAL)
Sharon D. Smith

,Ica$ or

CRITZ c. BLACK.

ROGERS & RUTH, P A.

CONCORD CHARLOTTE

NORTH CAROLINA

27

„w .

Boo#:1046 PAGE 109

ORTH CAROLINA
• ~ US COUNTY

I, Lorri ~_ III(fnS , a Notary Public in and for

said County and State, do hereby certify that Marsha R. Shambo, personally appeared before me this day and acknowledged that she is the Secretary of Southern Land Equities, Inc., a corporation, and that by authority duly given and as the act of the corporation, the foregoing instrument was signed in its name by its President, sealed with its corporate seal, and attested by herself as its Secretary

Witnes my hand and notarial seal, this the day of
August 1993

h (

. n' S

No :.

~"'''" otary Publi My Commission Expires: 5 k)`1

RTH CAROLINA
barrus COUNTY

I, rri . ms , a Notary Public in and for said County and Sta e, do hereby certify that ARLENE T. CONGER personally appeared before me this day and acknowledged that she is the Assistant Secretary of Niblock Development Corp., a corporation, and that by authority duly given and as the act of the corporation, the foregoing instrument was signed in its name by its Vice President, seald with its corporate seal, and attested by herself as its Assistant Secretary.

Witness my hand and notarial seal, this e day of
Y

,.,, fb~ 3r! ~ _

, '. .r~, ~,~_

~: ~~^ ~ ' otary Public

=

A Ac rri
Commission Expires 5/20

` 7

8ORTYf"MM"OLINA
abarrus COUNTY

I, ) Car' ` I L MS , a Notary Public in and for

said County and State, do hereby certify that Harold L. Smith
and wife, Sharon D. Smith, personally appeared before me this
day „,d„,,acknowledged the due execution of the foregoing
i~4r&mr''.~.,y
~~ d ,: Witness my hand and notarial eal, thi t e

day of
August

ty~~ '93 .

=>

i J ` O

A Pf~ I A I

tary Publi
My Commission Expires:

ty~~t..t3110fawW•t`;, ,,•

NORTH CAROLINA
CABARRUS COUNTY I n
The foregoing certificate (s) of Lorri L. Helms ;
a Notary Public of County, State of North Carolina,
Ie '(are) certified to be correct according to law.
Filed for registration on the 18th day of C' ~' ,
1993, at ; ( o o' clock 1 .M. , and duly recordedin the
Office of the Register of Deeds for Cabarrus County, North
Carolina, in Deed Book , Page