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HomeMy WebLinkAboutL_Hardie SP_DRAFT Declaration CCR_230106_v1 When Recorded, Return to: HARDIE PROPERTIES LLC 19707 44th Ave W Ste 207A, Lynnwood, WA, 98036 DECLARATION OF COVENANTS, CONDITIONS, RESTRICTIONS AND EASEMENTS Grantor: HARDIE PROPERTIES LLC Grantee: CITY OF SEATTLE UNIT LOT SUBDIVISION NO. ______________ Legal Description (complete): Unit Lots A and B, City of Seattle Unit Lot Subdivision No. ________________, as recorded under King County Recording No. ________________. Situate in King County, Washington. Assessor’s Tax Parcel ID #: 3185600054; TBD Reference Nos. of Documents Released or Assigned: N/A This Property is subject to the Washington Uniform Common Interest Ownership Act, codified at Ch. 64.90 RCW, as it may be from time to time amended; provided , however, under RCW 64.90.075(2), this Property is only subject to RCW 64.90.020, 64.90.025, and 64.90.030. HARDIE PROPERTIES LLC / 317 Hardie Ave NW CCRs - Table of Contents page i TABLE OF CONTENTS PAGE ARTICLE 1 INTERPRETATION ...................................................................................1 1.1 Washington Uniform Common Interest Ownership Act (ch. 64.90 RCW) ..............................................................................................1 1.2 Captions and Schedules ..................................................................................2 1.3 Definitions ........................................................................................................2 1.4 Owners Consent or Approval ........................................................................2 ARTICLE 2 PROPERTY RIGHTS .................................................................................3 2.1 Unit Lots ..........................................................................................................3 2.2 Easements ........................................................................................................3 2.2.1 Right to Use .......................................................................................3 2.2.2 Utility Easement ...............................................................................3 2.2.3 Ingress and Egress Easement ..........................................................3 2.2.4 Parking ..............................................................................................3 2.2.5 Easement for Fences and Open Space ............................................3 2.2.6 Easement for Encroachments .........................................................4 2.2.7 Easement Over Unit Lots ................................................................4 2.2.8 Mailboxes ..........................................................................................4 2.3 Party Walls ......................................................................................................5 2.3.1 General Rules of Law to Apply .......................................................5 2.3.2 Cost of Repair ...................................................................................5 2.3.3 Destruction of Fire or Other Casualty ...........................................5 2.3.4 Weatherproofing ..............................................................................5 2.3.5 Right to Contribution Runs with Land ..........................................5 2.3.6 Arbitration ........................................................................................5 HARDIE PROPERTIES LLC / 317 Hardie Ave NW CCRs - Table of Contents page ii ARTICLE 3 REGULATION OF COMMON AREAS ..................................................6 ARTICLE 4 USE/MAINTENANCE AGREEMENTS SET FORTH IN PLAT ............................................................................................................6 ARTICLE 5 ARCHITECTURAL CONTROL; USE; MAINTENANCE, ETC. ..............................................................................................................6 5.1 Architectural Control .....................................................................................6 5.2 Use of Unit Lots ...............................................................................................6 5.3 Use of Common Areas ....................................................................................7 5.4 Nuisances .........................................................................................................7 5.5 Subdivision ......................................................................................................7 5.6 Maintenance of Property. ..............................................................................7 5.6.1 Obligations of Owners .....................................................................7 5.6.2 Damage Caused by Owner ..............................................................7 5.7 Garbage and Trash Removal .........................................................................7 5.8 Pets ...................................................................................................................8 5.9 Signs .................................................................................................................8 5.10 Rentals .............................................................................................................8 5.11 Governmental Regulations and Restrictions................................................8 5.12 Vehicles ............................................................................................................8 5.13 Window and Door Treatments ......................................................................9 5.14 Antennas ..........................................................................................................9 5.15 Personal Property ...........................................................................................9 5.16 Assessments .....................................................................................................9 ARTICLE 6 INSURANCE................................................................................................9 6.1 Owner’s Insurance ..........................................................................................9 6.2 Reconstruction ..............................................................................................10 ARTICLE 7 MORTGAGEE PROTECTION ..............................................................10 7.1 Abandonment of Declaration .......................................................................10 7.2 Effect of Declaration Amendments .............................................................10 HARDIE PROPERTIES LLC / 317 Hardie Ave NW CCRs - Table of Contents page iii ARTICLE 8 COMPLIANCE WITH DECLARATION ..............................................10 8.1 Enforcement ..................................................................................................10 8.2 No Waiver of Strict Performance ................................................................10 ARTICLE 9 TERM OF DECLARATION — COMPLIANCE WITH RULE AGAINST PERPETUITIES AND RESTRAINTS OF ALIENATION ...........................................................................................11 ARTICLE 10 AMENDMENT OF DECLARATION ...................................................11 10.1 Amendments ..................................................................................................11 10.2 Prior to Close of First Sale ...........................................................................11 10.3 Amendments to Conform to Lending Guidelines ......................................11 ARTICLE 11 MISCELLANEOUS ................................................................................11 11.1 Notices ............................................................................................................11 11.2 Notification of Sale of Unit Lot ....................................................................12 11.3 Remedies Cumulative ...................................................................................12 11.4 Successors and Assigns .................................................................................12 11.5 Joint and Several Liability ...........................................................................12 11.6 Priority of Mortgage .....................................................................................12 11.7 Attorneys’ Fees ..............................................................................................12 11.8 Severability ....................................................................................................12 11.9 Limitation of Liability ..................................................................................12 ARTICLE 12 ARBITRATION .......................................................................................13 HARDIE PROPERTIES LLC / 317 Hardie Ave NW CCRs page 1 DECLARATION OF COVENANTS, CONDITIONS, RESTRICTIONS AND EASEMENTS THIS DECLARATION is made as of the date hereinafter set forth by HARDIE PROPERTIES LLC, a Washington limited liability company (“Declarant”). RECITALS A. Declarant is the owner of Unit Lots A and B of Unit Lot SubdivisionNo. ___________, all as more particularly described on the cover page attached hereto and incorporated herein by this reference (the “Property”). B. A townhome residential dwelling has been constructed on each of Unit Lots A and B. C. Declarant hereby declares that the Unit Lots shall be held, conveyed, divided, encumbered, hypothecated, leased, rented, used, occupied and improved subject to the following covenants, conditions, restrictions, limitations, reservations, easements, rights, rights-of-way, liens, charges and equitable servitudes, all of which are hereby declared, established, expressed and agreed: (i) to be for the benefit of and protection of the Property, its desirability, value and attractiveness; (ii) to be for the benefit of the Owners and Mortgagees of the Unit Lots; (iii) to run with the land and be binding upon all parties having or acquiring any right, title or interest in the Property or any part thereof; (iv) to inure to the benefit of every portion of the Property and any interest therein; and (v) to inure to the benefit of and be binding upon the successors and assignees in interest of each Owner and of Declarant. D. No homeowners association has been formed for this Property and therefore, no assessments are collected from the Owners of the Unit Lots. ARTICLE 1 INTERPRETATION 1.1 Washington Uniform Common Interest Ownership Act (ch. 64.90 RCW). The Property is a “plat community” as defined in RCW 64.90.010(37). However, under RCW 64.90.075(2), the Property is only subject to RCW 64.90.020, 64.90.025, and 64.90.030, because (a) the Property is not subject to any development right;(b) the Property does not have more than twelve unit lots; (c) this Declaration does not provide for the establishment of ahomeowners association or the levying of assessments and therefore, there will be no annual average assessment of unit lots in excess of $300; (d) the Declarant reasonably believes in good faith that no HARDIE PROPERTIES LLC / 317 Hardie Ave NW CCRs page 2 assessment of unit lots is required to pay the expenses of the association because there will be no association; and (e) the required provision restricting assessments is set forth in Section 5.16. 1.2 Captions and Schedules. Captions given to the various Articles and Sections herein are for convenience only and are not intended to modify or affect the meaning of any of the substantive provisions hereof. Any schedules or exhibits referred to herein and attached hereto shall be deemed incorporated herein by reference as though fully set forth where such reference is made. 1.3 Definitions. 1.3.1 “Common Areas” shall mean the easement areas and other property interests and improvements thereto where common usage by the Owners is permitted, as more particularly described herein and on the Plat of the Property. 1.3.2 “Declarant” shall mean HARDIE PROPERTIES LLC, a Washington limited liability company. 1.3.3 “Declaration” shall mean this Declaration and any amendments thereto. 1.3.4 “Mortgage” shall mean a recorded mortgage or deed of trust that creates a lien against a Unit Lot and shall also mean a real estate contract for the sale of a Unit Lot. 1.3.5 “Mortgagee” shall mean the beneficial owner or designee of the beneficial owner, of an encumbrance on a Unit Lot created by mortgage or deed of trust and shall also mean the vendor, or assignee of a vendor, of a real estate contract for the sale of a Unit Lot. 1.3.6 “Owner” shall mean and refer to the record owner, whether one or more persons or entities, of fee simple title to any Unit Lot, including contract purchasers, but excluding those having such interests merely as security for the performance of an obligation. 1.3.7 “Plat” shall mean the City of Seattle Unit Lot SubdivisionNo. ___________, as recorded under King County Recording No. ___________, by which the Unit Lots were created. 1.3.8 “Unit Lot”shall mean and refer to any one of the unit lots of the Property together with all improvements thereto. 1.4 Owners Consent or Approval. Whenever any of the provisions of this Declaration require the consent or approval of, or a decision by, some or all of the HARDIE PROPERTIES LLC / 317 Hardie Ave NW CCRs page 3 Owners, then, unless otherwise expressly provided herein, the unanimous consent, approval or affirmative decision of such Owners shall be deemed to be required. ARTICLE 2 PROPERTY RIGHTS 2.1 Unit Lots. Subject to the provisions of this Declaration, each Owner shall have the right to own, use and enjoy the Unit Lot owned by said Owner. The addresses for each of the Unit Lots shall be as follows: UNIT LOT ADDRESS A 317A Hardie Ave NW Renton, WA 98057 B 317B Hardie Ave NW Renton, WA 98057 2.2 Easements. 2.2.1 Right to Use. Subject to the provisions of this Declaration and the Plat, each Owner, except as otherwise limited herein, shall have the right to use, enjoy and receive the benefit of any easements created hereunder or pursuant to the Plat. 2.2.2 Utility Easement. There is hereby declared and granted a utility easement over, under, through, across and upon the Property as more particularly described on the Plat as the “Utility Easement.” The Utility Easement shall include, but not be limited to, underground water lines, power, gas, telephone, cable, sanitary sewer and storm sewer and building repair and maintenance and emergency access. 2.2.3 Ingress and Egress Easement. There is hereby declared and granted to the Owners of the Unit Lots a perpetual, non-exclusive easement for pedestrian and vehicular access, ingress, and egress over, under, through, across and upon, that portion of the Property as more particularly described on the Plat as the “Ingress and Egress Easement”. 2.2.4 Parking. Parking for each Unit Lot is provided within the Unit Lot and is not subject to any easement hereunder. Each Owner may park vehicles on their respective driveway, provided that they do not hinder or prevent the other Owner’s use of the Ingress and Egress Easement from the street to the Owner’s respective Unit Lot. 2.2.5 Easement for Fences and Open Space. Fences constructed on the Property as of the date of this Declaration may not in every case be located on a property line as depicted on the Plat. To the extent that any such fence encloses a yard or open space area adjoining one of the homes constructed on a Unit Lot, an easement is HARDIE PROPERTIES LLC / 317 Hardie Ave NW CCRs page 4 hereby declared and granted for the installation of such fence and its maintenance, repair and replacement. To the extent that any such fence encloses a portion of a Unit Lot as yard or open space area benefiting the adjoining Unit Lot (“Yard Easement Area”), an easement is hereby declared and granted for the benefited Owner to use such Yard Easement Area for yard, landscaping and open space purposes. The Owner of the benefited Unit Lot shall indemnify and hold the Owner of the servient Unit Lot harmless from any liability, damage or cost for personal injury or property damage arising from any negligent or wrongful act or omission within such Yard Easement Area by the benefited Owner or the benefited Owner’s guests, invitees, contractors or visitors. Owners sharing a common fence shall share equally in its ordinary maintenance, repair and replacement. 2.2.6 Easement for Encroachments. Each Unit Lot is hereby declared to have an easement over all adjoining Unit Lots for the purpose of accommodating any encroachment due to engineering errors, errors in original construction, settlement or shifting of any building located on any Unit Lot, or any other similar cause, and any encroachment due to building overhang or projection. Without limitation, such easement shall be applicable to any fence installed by Declarant on the Property. There shall be valid easements for the maintenance of said encroachment so long as they shall exist, and the rights and obligations of Owner shall not be altered in any way by said encroachment, settling or shifting; provided, however, in no event shall a valid easement for encroachment be created in favor of an Owner or Owners if said encroachment occurred due to willful act or acts with full knowledge of said Owner or Owners. In the event any building or improvement on a Unit Lot is partially or totally destroyed, and then repaired or rebuilt, the Owners agree that minor encroachments over adjoining Unit Lots shall be permitted, and that there shall be valid easements for the maintenance of said encroachments so long as they shall exist. The foregoing encroachments shall not be construed to be encumbrances affecting the marketability of title to any Unit Lot. 2.2.7 Easement Over Unit Lots. There is hereby reserved to each Owner an easement over each adjoining Unit Lot to the extent reasonably necessary to permit said Owner to repair, maintain and improve the improvements on said Owner’s Unit Lot. Provided, each Owner shall: (i) utilize only such portion of another Unit Lot, and only for such duration as is reasonably necessary to accomplish a permitted purpose and in a manner that will not unnecessarily disturb the peaceful enjoyment of such other Unit Lot by Owner thereof; and (ii) at said Owner’s sole expense, repair any damage caused to such other Unit Lot and improvements thereof and restore such other Unit Lot and improvements to as near the original condition as reasonably practicable. 2.2.8 Mailboxes. There is hereby declared and granted to the Owners of the Unit Lots an easement for the purpose of installation, maintenance, use and replacement of mailboxes serving the Property as installed by Declarant. HARDIE PROPERTIES LLC / 317 Hardie Ave NW CCRs page 5 2.3 Party Walls. 2.3.1 General Rules of Law to Apply. Any wall which is built as part of the original construction of the townhomes upon each Unit Lot and placed on the dividing line between the Unit Lots shall constitute a party wall, and, to the extent not inconsistent with the provisions of this Article, the general rules of law regarding party walls and liability for property damage due to negligence or willful acts or omissions shall apply thereto. 2.3.2 Cost of Repair. The cost of reasonable repair and maintenance of a party wall shall be shared equally by the two Owners who make use of that wall. 2.3.3 Destruction of Fire or Other Casualty. If a party wall is destroyed or damaged by fire or other casualty, any Owner who has the use of the wall may restore it, and the other Owner who makes use of the wall shall contribute one-half of the cost of restoration thereof without prejudice, however, to the right of any such Owner to call for a larger contribution from the other Owner under any rule of law regarding liability for negligent or willful acts or omissions. 2.3.4 Weatherproofing. Notwithstanding any other provisions of this article, an Owner who by his negligent or willful acts causes the party wall to be exposed to the elements shall bear the whole cost of furnishing the necessary protection against such elements. 2.3.5 Right to Contribution Runs with Land . The right of any Owner to contribution from any other Owner under this Section shall be appurtenant to the land and shall pass to such Owner’s successors in title. 2.3.6 Arbitration. In the event of any dispute arising concerning a party wall, or under the provisions of this Section, such dispute shall be subject to arbitration pursuant to ARTICLE 12below. HARDIE PROPERTIES LLC / 317 Hardie Ave NW CCRs page 6 ARTICLE 3 REGULATION OF COMMON AREAS The use, repair and maintenance of Common Areas shall be subject to the control and regulation of the Owners, who shall act by unanimous decision, unless otherwise provided, and associated costs for use, repair and maintenance shall be shared in the same manner (equally, unless otherwise provided); provided, however, each Owner shall be responsible for the ordinary day-to-day maintenance and repair, including landscaping and cleaning, of the portion of any Common Area lying within such Owner’s Unit Lot, except as expressly provided otherwise. In the event of any dispute arising concerning the Common Areas, or under the provisions of thisArticle, such dispute shall be subject to arbitration pursuant to ARTICLE 12below. ARTICLE 4 USE/MAINTENANCE AGREEMENTS SET FORTH IN PLAT Each Unit Lot is subject to certain use and maintenance agreements set forth on the Plat of the Property and Owner of each Unit Lot is hereby advised to review such provisions prior to commencing any maintenance or repair of the improvements constructed on such Owner’s Unit Lot. ARTICLE 5 ARCHITECTURAL CONTROL; USE; MAINTENANCE, ETC. 5.1 Architectural Control. No improvements, alterations, repairs, excavations, major landscaping, changes in grade or other work which in any way materially alters the grade or condition of the Unit Lots or materially changes the type, quality or color of the improvements located thereon existing on the date such Unit Lot was first conveyed in fee by Declarant to an Owner shall be made or done without the prior written approval of Owners of the other Unit Lots. In the event an Owner fails to approve, modify or disapprove in writing a request within thirty (30) days after plans and specifications in writing have been submitted, the Owner’s approval will be deemed granted. No improvement, alteration or repair of any Unit Lot or the improvements constructed thereon, whether interior or exterior, shall be made until the Owner thereof has obtained all necessary governmental permits and approvals and any such work shall be performed in compliance therewith. 5.2 Use of Unit Lots. All Unit Lots and improvements located thereon shall be used, improved and developed exclusively for residential purposes. Home HARDIE PROPERTIES LLC / 317 Hardie Ave NW CCRs page 7 occupations are permissible only to the extent allowed by Seattle Municipal Code Chapter 23.45, as it may be amended; provided, however, that in no event may signs be displayed in connection with any such home occupation. Notwithstanding anything to the contrary herein, until such time as the Unit Lots have been sold by Declarant, Declarant, its agents or assigns shall have the right to use any Unit Lot owned by Declarant as an office, sales facility or model unit. 5.3 Use of Common Areas. All Common Areas shall be used for the purposes for which they are established in accordance with this Declaration and the Plat of the Property. Each Owner shall observe the restrictions related to the use of the Common Areas as set forth in this Declaration, the Plat and any rules and regulations adopted by Owners. 5.4 Nuisances. No nuisance shall be permitted to exist on or operate upon any Unit Lot or improvement thereon so as to be detrimental to any other Unit Lot or to its occupants. 5.5 Subdivision. No Unit Lot shall be further subdivided or separated into smaller Unit Lots by any Owner, and, without unanimous consent of Owners, no portion less than all of any such Unit Lot, nor any easement or other interests therein, shall be conveyed or transferred by an Owner. The foregoing sentence shall not prohibit deeds of correction, deeds to resolve boundary disputes, and similar corrective instruments. 5.6 Maintenance of Property. 5.6.1 Obligations of Owners. Each Owner shall keep such Owner’s Unit Lot, and all improvements, landscaping and yard areas thereon, in good order and repair and free of debris, in a manner and with such frequency as is consistent with good property management. In the event an Owner of any Unit Lot in the Property shall fail to maintain the Unit Lot and improvements situated thereon, as provided herein, the other Owners, after notice to Owner and unanimous approval by the remaining Owners, shall have the right to enter upon the Unit Lot to repair, maintain and restore the Unit Lot and the exterior of the improvements erected thereon. All costs related to such correction, repair or restoration shall be charged to such Unit Lot. 5.6.2 Damage Caused by Owner. In the event that an arbitrator or court determines that the need for maintenance, repair, or replacement is caused through the willful or negligent act of an Owner, or the family, guests, lessees or invitees of any Owner(the “Defaulting Owner”), and is not covered or paid for by insurance, in whole or in part, then the other Owners may perform such maintenance, repair or replacement at the Defaulting Owner’s sole cost and expense and shall become a lien against the Unit Lot of the Defaulting Owner. 5.7 Garbage and Trash Removal. No Unit Lot shall be used as a dumping ground for rubbish, trash or garbage and each Unit Lot shall be kept free of debris by the HARDIE PROPERTIES LLC / 317 Hardie Ave NW CCRs page 8 Owner thereof. Owners shall individually contract for garbage and recycling collection with the City of Seattle. The garbage and recycling containers serving each Unit Lot shall be stored within such Unit Lot. Each Owner shall be responsible for placing such containers at the appropriate location for pick up the evening before collection and shall be responsible for returning the containers to their proper storage location not later than the evening after collection has occurred. 5.8 Pets. Except for no more than three (3) domesticated pets (such as dogs, cats, birds, fish, hamsters, or other pet sold at a licensed pet store in Washington State), no animals shall be kept on any Unit Lot. No such pet shall disturb any other Owner through noise or other behavior. 5.9 Signs. No commercial advertising signs or billboards or structures shall be erected on any Unit Lot or displayed to the public on any Unit Lot except for standard size “For Sale” or “For Rent” realty signs unless written permission of all Owners is obtained. Notwithstanding the foregoing, so long as Declarant owns a Unit Lot, Declarant shall be permitted to maintain on any Unit Lot or Unit Lots owned by Declarant such signage and other facilities (including model homes) as Declarant may choose.This restriction shall not prohibit Owners from posting political signage in accordance with RCW 64.38.034 or the flag of the United States in accordance with RCW 64.38.033. 5.10 Rentals. Owners shall be prohibited from leasing or renting less than an entire Unit Lot or improvements thereon, or for a term of less than thirty (30) days (with the exception of a lender in a possession of a Unit Lot and improvements thereon following a default in a first mortgage, a foreclosure proceeding or any deed of trust sale or other arrangement in lieu of a foreclosure); and all leasing or rental agreements shall be in writing and be subject to the Declaration (with a default of the tenant in complying with the Declaration constituting a default under the lease or rental agreement). Notwithstanding the foregoing, so long as the Owner of a Unit Lot, or a tenant who is permitted under the preceding sentence, resides in such Owner’s or tenant’s Unit Lot, then the Owner or tenant may have roommates or other guests who pay rent to such Owner or tenant. 5.11 Governmental Regulations and Restrictions. All zoning, building, environmental and other governmental rules, regulations, ordinances and laws applicable to the Property subject to this Declaration shall be observed. In the event of any conflict between any provision of such governmental rules, regulations, ordinances and laws and the restrictions of this Declaration, the more restrictive provisions shall apply. 5.12 Vehicles. No parking or storage of boats, trailers, commercial trucks, campers, recreational vehicles, other equipment or devices or inoperable vehicles shall be permitted in open view on the Property nor shall any vehicle be parked so as to block or hinder ingress to or egress from Unit Lots. HARDIE PROPERTIES LLC / 317 Hardie Ave NW CCRs page 9 5.13 Window and Door Treatments. All window treatments for the townhomes constructed on each Unit Lot, such as draperies or blinds, shall appear to be a neutral color to an observer standing outside of such townhomes. No storm doors, exterior awnings, exterior blinds or other exterior window treatments shall be installed or attached to any residence constructed on the Property. No bars or other visible security devices shall be erected, installed or attached to any residence on the Property. 5.14 Antennas. No external antenna, tower or satellite dish shall be permitted on the Property except that an Owner may place a satellite dish on the Owner’s Unit Lot provided that such dish is no larger than one meter in diameter. 5.15 Personal Property. Owners shall keep the exterior areas of their Unit Lots in a neat and orderly condition and shall not store or leave lying about personal property such as sporting equipment, swimming pools, bicycles, boats, kayaks, canoes, outboard motors, gardening equipment or similar items, all of which shall be stored inside the improvements constructed on the Unit Lot except when in use. Specifically excluded from this proscription are patio furniture, one barbeque for each Unit Lot, pots and planters, and landscaping materials. 5.16 Assessments. No assessment of unit lots is required to pay the expenses of a homeowners association because there is not such an association. However, to the extent that a homeowners association is established and assessments charged to the Unit Lots, any such assessment may not be increased above $300, as adjusted pursuant to RCW 64.90.65, prior to the transition meeting without the consent of the Owners of the Unit Lots, other than Declarant, holding ninety percent of the votes in the association. ARTICLE 6 INSURANCE 6.1 Owner’s Insurance. Each Owner shall continuously maintain in effect insurance with respect to (i) such Owner’s Unit Lot (including any Common Areas located upon such Unit Lot), and (ii) the improvements constructed thereon, covering such casualties and liabilities and meeting the insurance requirements typically required by residential lenders for homes in the City of Seattle, including those now or hereafter established by the Federal National Mortgage Association, Federal Home Loan Mortgage Corporation, Federal Housing Authority and/or Veterans Administration (“Secondary Market Agencies”) so long as any such agencies are either a Mortgagee or Owner of a Unit Lot within the Property, except to the extent such coverage is not available or has been waived in writing by such agencies. Upon request by the other Owners, each Owner shall provide satisfactory written evidence that such insurance is being maintained and that all premiums therefore have been paid. If an Owner fails to obtain any required insurance or fails to pay the premium therefor, the other Owners may (but shall not be HARDIE PROPERTIES LLC / 317 Hardie Ave NW CCRs page 10 obligated to) obtain such insurance and/or make such payments for such Owner and charge the cost of such payments to such Owner. 6.2 Reconstruction. In the event of damage or destruction by fire or other casualty of any improvements on a Unit Lot, Owner thereof shall, upon receipt of the insurance proceeds, repair or rebuild such damaged or destroyed portions of the improvements in a good workmanlike manner substantially the same as the original plans and specifications of said property. ARTICLE 7 MORTGAGEE PROTECTION 7.1 Abandonment of Declaration. Owners shall not, without the unanimous consent of all first Mortgagees of record of the Unit Lots, seek by act or omission to abandon this Declaration or cause any Unit Lot to be removed from the provisions hereof. 7.2 Effect of Declaration Amendments. No amendment to this Declaration shall be effective to modify, change, limit or alter the rights expressly conferred upon Mortgagees in this instrument with respect to any unsatisfied mortgage duly recorded unless the amendment shall be consented to in writing by the holder of such mortgage. Any provisions of this Declaration conferring rights upon Mortgagees which is inconsistent with any other provisions of said Declaration shall control over such inconsistent provisions. ARTICLE 8 COMPLIANCE WITH DECLARATION 8.1 Enforcement. Each Owner shall comply strictly with the provisions of this Declaration as the same may be lawfully amended from time to time, and with all decisions adopted pursuant to this Declaration. Failure to comply shall be grounds for an action to recover sums due for damages, or injunctive relief, or both, maintainable by an aggrieved Owner against the party failing to comply. 8.2 No Waiver of Strict Performance. The failure of an Owner in any one or more instances to insist upon the strict performance of any of the terms, covenants, conditions or restrictions of this Declaration, or to exercise any right or option contained in this Declaration, or to serve any notice or institute any action, shall not be constructed as a waiver or a relinquishment for the future of such term, covenant, condition or restriction, but such term, covenant, condition or restriction shall remain in full force and effect. HARDIE PROPERTIES LLC / 317 Hardie Ave NW CCRs page 11 ARTICLE 9 TERM OF DECLARATION — COMPLIANCE WITH RULE AGAINST PERPETUITIES AND RESTRAINTS OF ALIENATION The covenants contained herein shall run with the land and shall be binding upon all parties and all persons claiming under them for fifty (50) years after the date of this Declaration after which time the covenants shall be automatically extended for successive period of ten (10) years, unless an instrument executed in accordance with Article 10 herein shall be recorded, canceling or terminating this Declaration. ARTICLE 10 AMENDMENT OF DECLARATION 10.1 Amendments. Amendments to this Declaration shall be made by an instrument in writing entitled “Amendment to Declaration” which sets forth the entire amendment. Except as otherwise specifically provided for in this Declaration, any proposed amendment must be unanimously approved in writing by the Owners. Amendments shall be effective upon recording. 10.2 Prior to Close of First Sale. Prior to the close of the first Unit Lot sale, Declarant shall have the right to amend this Declaration by executing and recording, the desired amendment thereto, and the recording of said amendment shall be presumed to be valid as to anyone relying thereon in good faith. 10.3 Amendments to Conform to Lending Guidelines. So long as Declarant continues to own one or more Unit Lots, Declarant may record such amendments to the Declaration as necessary to meet the then requirements of title insurance companies, the Secondary Market Agencies (as defined in Section 6.1), institutions or lenders financing the purchase of a Unit Lot from Declarant. ARTICLE 11 MISCELLANEOUS 11.1 Notices. All notices, demands, or other communications (“Notices”) permitted or required to be given by this Declaration shall be in writing and, if mailed postage prepaid by certified or registered mail, return receipt requested, shall be deemed given three (3) days after the date of mailing thereof, or on the date of actual receipt, if sooner; otherwise, Notices shall be deemed given on the date of actual receipt. Notice to any Owner may be given at any Unit Lot owned by such Owner; provided, however, that an Owner may from time to time by Notice to the other Owners designate such other HARDIE PROPERTIES LLC / 317 Hardie Ave NW CCRs page 12 place or places or individuals for the receipt of future Notices. If there is more than one Owner of a Unit Lot, Notice to any one such Owner shall be sufficient. 11.2 Notification of Sale of Unit Lot. Concurrently with the sale of any Unit Lot, the new Owner shall notify the other Owners, in writing, of such sale. Such notification shall set forth: (i) the new Owner’s name; (ii) the street address of the Unit Lot purchased by the new Owner; (iii) the new Owner’s mailing address; and (iv) the date of sale. 11.3 Remedies Cumulative. The remedies provided herein are cumulative, and Owners may pursue them concurrently, as well as any other remedies which may be available under law although not expressed herein. 11.4 Successors and Assigns. This Declaration shall be binding upon and shall inure to the benefit of the heirs, personal representatives, successors and assigns of Declarant, and the heirs, personal representatives, grantees, lessees, sublessees and assignees of the Owners. 11.5 Joint and Several Liability. In the case of joint ownership of a Unit Lot, the liability of each of the Owners thereof in connection with the liabilities and obligations of Owners, set forth in or imposed by this Declaration, shall be joint and several. 11.6 Priority of Mortgage. This Declaration shall not initially be binding upon any Mortgagee of the Property of record at the time of recording of said Declaration but rather shall be subject and subordinate to said Mortgage. 11.7 Attorneys’ Fees. In any action to enforce the provisions of this Declaration, the prevailing party in such action shall be entitled to an award for reasonable attorneys’ fees and all costs and expenses reasonably incurred in preparation for or prosecution of such action. 11.8 Severability. The provisions hereof shall be deemed independent and severable, and the invalidity or partial invalidity for unenforceability of any one provision or portion thereof shall not affect the validity or enforceability of any other provisions hereof. 11.9 Limitation of Liability. So long as Declarant has acted in good faith, without willful or intentional misconduct, upon the basis of such information as may be possessed by Declarant in connection with matters governed by this Declaration, then Declarant shall not be personally liable to any Owner, or to any other party, for any damage, loss or prejudice suffered or claimed on account of any act, omission, error or negligence of Declarant; provided, that this section shall not apply where the consequences of such act, omission, error or negligence are covered by insurance obtained by Declarant or Owner. HARDIE PROPERTIES LLC / 317 Hardie Ave NW CCRs page 13 ARTICLE 12 ARBITRATION Any disagreement between or among any Owners and/or Declarant, with respect to the interpretation or application of this Declaration or the obligations arising hereunder shall be determined by arbitration. Such arbitration shall be conducted, upon request of Owners or Declarant desiring arbitration, before an arbitrator agreeable to the parties, designated by the American Arbitration Association and in accordance with the rules of such Association. The arbitrator designated and acting under this Declaration shall make his or her decision in strict conformity with such rules and shall have no power to depart from or change any of the provisions thereof. In accordance with such rules, the arbitrator shall determine the controversy in accordance with the laws of the State of Washington as applied to the facts. The expense of arbitration proceedings conducted hereunder shall be borne equally by the parties to such arbitration. All arbitration proceedings hereunder shall be conducted in the City of Seattle, Washington. Judgment upon the award may be entered in any court having jurisdiction thereof. HARDIE PROPERTIES LLC / 317 Hardie Ave NW CCRs page 14 Dated this ______ day of _________________________, 2021. DECLARANT: HARDIE PROPERTIES LLC, a Washington limited liability company By_________________________________ _________________________________ Its ______________________________ STATE OF WASHINGTON } ss. COUNTY OF This record was acknowledged before me on _________________, 2021, by as of HARDIE PROPERTIES LLC, a Washington limited liability company. [Stamp Below] Signature Notary Public in and for the State of Washington My Commission Expires