ALTON Combined Disclosure & HOA Documents

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5.1 Each Owner (defined below) has certain use rights with respect to the Alton Community Recreation and Fitness Facility (the “ Facility ”) pursuant to the Recreation Declaration. Purchaser understands that the Facility may not currently exist, and may not exist for some time. The Recreation Declaration outlines the terms of use of the Facility and the obligation of each Owner of a home or residential unit within the Neighborhood (each an “ Owner ”) to pay a pro rata portion of the Facility Dues (including, without limitation, the Facility Expenses, as defined in the Recreation Declaration) to Facility Owner (defined in Recreation Declaration). Purchaser also understands and agrees that all sums due pursuant to the Recreation Declaration in regard to the Facility are direct personal obligations of Purchaser and failure to pay Facility Dues when due could cause Facility Owner to commence legal proceedings to collect the Facility Dues and/or record a lien on the Property and Facility Owner may foreclose on such lien to the extent permitted by law. At this time, Facility Owner is Seller. It is intended that the Neighborhood Association will be the collection agent for Facility Dues to Facility Owner or Alton Recreation Association, Inc. (the “ Recreation Association ”), as applicable. Accordingly, Facility Dues will be included in the annual budget of the Neighborhood Association so long as the Neighborhood Association is the collection agent for such Facility Dues. 5.2 Facility Owner has constructed or will construct, at its sole cost and expense, certain recreation facilities which may include, without limitation, (defined in the Recreation Declaration), fitness building with exercise room, equipment clubhouse meeting room, tot lot, ball field/multi-purpose field, trail system, spa, and one or more outdoor swimming pools (subject to Facility Owner’s paramount right to unilaterally, and without the joinder of any party whatsoever, add to, alter, modify, change or remove any of such recreation facilities), together with such equipment and personally as Facility Owner determines in its sole and absolute discretion. 5.3 The Facility shall be used and enjoyed by Purchaser on a non-exclusive basis, in common with such other Owners, persons, entities, and corporations that may be entitled to use the Facility under the terms of the Recreation Declaration. 5.4 By accepting a Deed to the Property, Purchaser acknowledges and agrees that: (i) it is in the best interest of Purchaser, Master Association, Neighborhood Association, Neighborhood and the Community as a whole, and the desired lifestyle and property values therein for the Facility to be located within or near the Community; (ii) the terms of the Recreation Declaration relating to the Facility and the Facility Dues imposed thereby, including the Special Use Fees and Initial Contribution, are fair and reasonable given the nature of the Facility amenities and the cost thereof; (iii) the Facility, and the right to use the Facility were, for purposes of this acknowledgment, important to Purchaser, and Purchaser would not have purchased the Property without the right to use the Facility (subject to the provisions of the Recreation Declaration); (v) full disclosure of the nature of the Facility and obligations associated therewith was included in the Recreation Declaration given to Purchaser prior to Purchaser executing the Agreement; (vi) the fact that Facility Owner is, or may be, affiliated with Seller and/or Builder, is understood by Purchaser; (vii) the provisions of the Recreation Declaration do not grant any ownership rights in the Facility in favor of Neighborhood Association, Master Association or any Owner but, rather, grant a non-exclusive license to use portions of the Facility available to owners within the Community, subject to full compliance with all obligations imposed on each of them relating thereto; and (viii) Recreation Association’s opportunity to purchase the Facility is set forth in the Recreation Declaration. 6. Community Charges . In addition to the Closing Costs set forth in the Agreement, Purchaser shall pay the following additional charges with respect to the Neighborhood and Community at Closing: 6.1 Master Association Assessments. Assessments payable to Master Association (“ Master Association Assessments ”), prorated as of the day Closing occurs (based on the then current Assessments at the time of Closing). Estimated Master Association Assessments are set forth in the Disclosure Summary delivered in connection with the Agreement and are based upon predicted costs of operating the Master Association and maintaining the Common Areas and Limited Common Areas (if any) of the Master Association. Purchaser acknowledges and understands that operating budgets for Master Association may not yet be available. Purchaser understands that at such time that the estimated operating budget for Master Association becomes available, that such budget is only an estimate of what it will cost to operate Master Association. Master Association may make changes in the budget at any time to cover increases or decreases in expenses or estimates in the budget. Without limiting the generality of this Section, those changes will not give Purchaser any right to cancel the Agreement. 6.2 Neighborhood Association Assessments. Assessments payable to Neighborhood Association (“ Neighborhood Association Assessments ”), prorated as of the day Closing occurs (based on the then current Assessments at the time of Closing). Estimated Neighborhood Association Assessments are set forth in the Disclosure Summary delivered in connection with the Agreement and are based upon the predicted costs of operation. Purchaser acknowledges and understands that operating budgets for Neighborhood Association may not yet be available. Purchaser understands that at such time that the estimated operating budget for Neighborhood Association becomes available, that such is only an estimate of what it will cost to run Neighborhood Association. Neighborhood Association may make changes in the budget at any time to cover increases or decreases in expenses or estimates in the budget. Without limiting the generality of this Section, those changes will not give Purchaser any right to cancel the Agreement. 6.3 Facility Dues. Facility Dues payable to Facility Owner, prorated as of the day Closing occurs (based on the then current Facility Dues at the time of Closing) commencing upon issuance of a certificate of occupancy for the Facility. Estimated Facility Dues are set forth in the Recreation Declaration and related documents, as amended from time to time. Purchaser acknowledges and understands that Facility Dues may increase as additional portions of the Facility become available for use. Purchaser understands that the estimated operating budget for the Facility is only an estimate. Facility Owner may make changes in the budget at any time to cover increases or decreases in expenses or estimates in the budgets. Without limiting the generality of this Section, such changes will not give Purchaser any right to cancel the Agreement. 6.4 Neighborhood Capital Contribution. Upon acquisition of record title to a Unit, a contribution shall be made by or on behalf of the Purchaser to the working capital of the Neighborhood Association in an amount equal to two (2) quarterly payments of the Base Assessments (defined in the Neighborhood Declaration) per Unit or in such other amount as the Board may specify which may be a flat rate from year to year. Each Owner’s capital contribution shall be collected on the closing statement for the transaction conveying the Unit and shall be remitted to the Neighborhood Association at that time. This amount shall be in addition to, not in lieu of, the Base Assessment and shall not be considered an advance payment of such Assessment. This amount shall be deposited into the purchase and sales escrow and disbursed therefrom to the Neighborhood Association to offset Seller’s deficit and for use in covering operating expenses and other expenses incurred by the Neighborhood Association pursuant to the Neighborhood Declaration and the Neighborhood Association By-Laws. 6.5 Facility Capital Contribution. At the time of conveyance of a Unit (including resale conveyances), there shall be collected from each Purchaser an amount equal to two (2) quarterly payments of Facility Dues (whether or not there is a certificate of occupancy issued for the Facility) per Unit to establish a fund for the operation of the Facility. Each Owner’s contribution shall be collected on the closing statement for the transaction conveying the Unit and shall be remitted to Facility Owner at that time. The purpose of this fund is to ensure that Facility Owner will have cash available to meet its obligations, unforeseen expenditures, or to acquire additional property, equipment or services deemed necessary or desirable. Amounts paid into the fund are not to be considered as advance payment of Facility Dues. Facility Owner shall be entitled to keep such funds, and shall not be required to account for the same. The contribution may be used and applied by Facility Owner as it deems necessary in its sole and absolute discretion including, without limitation, to reduce Facility Expenses. 6.6 Community Service Fees. The Neighborhood Association may establish and collect a community service fee from the transferring Owner upon each transfer of title to a Unit in Community, which fee shall be payable at the closing of the transfer and shall be secured by the Neighborhood Association’s lien for assessments. The Neighborhood Association shall have the sole discretion to determine the amount and method of determining any such transfer fee, which may, but is not required to, be determined based upon a sliding scale which varies in accordance with the “Gross Selling Price” of the property or another factor as determined by the Neighborhood Association. For the purpose of determining the amount of the transfer fee, the Gross Selling Price shall be the total cost to the purchaser of the property, excluding taxes and title transfer fees as shown by the amount of tax imposed by Palm the County. All transfer fees which the Neighborhood Association collects shall be deposited into the Neighborhood Association’s account to use for such purposes as the Neighborhood Association’s Board deems beneficial to the general good and welfare of the Neighborhood. 7. Lighted Tennis Courts and Ball Fields . Tennis Courts and/or ball fields may be constructed within the Community, and if constructed, may be lighted at various times. Purchaser acknowledges and accepts that the lights from future tennis courts and/or ball fields may be bright enough to be seen from the Property. 8. Building and Use Restrictions. Every homesite is subject to building and use restrictions as set forth in the Neighborhood Declaration. These restrictions are subject to change without notice and may affect, among other things, residential and nonresidential uses, building specifications, accessory structures, nuisance, home occupancy, signage, antennas, satellite dishes, animals, driveways, vehicle parking, rubbish, utility and drainage easements, clothes lines, fences, special rights of Seller and Builder(s), leases and restoration of homesites. Seller encourages you to carefully review the Neighborhood Declaration to ensure the long term quality of life for both you and your neighbors.

Date Modified: 11/24/15 Date Printed: %TodaysDate%

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