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Return Address: JOHNS MONROE MITSUNAGA KOLOUŠKOVÁ PLLC Attention: Vicki Orrico 11201 S.E. 8th St., Suite 120
Bellevue, WA 98004
AUDITOR/RECORDER’S INDEXING FORM
Document Title(s): DECLARATION AND COVENANTS, CONDITIONS AND RESTRICTIONS FOR
SAPPHIRE ON 106TH
Grantor(s): Sapphire Homes, Inc., a Washington corporation
Grantee(s): Sapphire on 106th Homeowner Association, a Washington nonprofit corporation
Legal
Description:
(abbreviated)
NE 1/4 OF THE SW 1/4 OF SECTION 29, T23N, R5E, W.M.
Additional legal: Ex. A
Assessor’s Property Tax Parcel Number(s): 0087000265 and 0087000270
DECLARATION OF COVENANTS, CONDITIONS AND RESTRICTIONS
FOR SAPPHIRE ON 106TH
This Declaration Of Covenants, Conditions And Restrictions For Sapphire On 106th
(“Declaration”) is made this DAY OF 2024, by the undersigned
Sapphire Homes, Inc., a Washington corporation, referred to herein as “Declarant,” which is
the owner of a certain real property legally described in Exhibit A known as Plat of Sapphire on
106th, located in the City of Renton, King County, Washington (the “Plat”).
With the exception of RCW 64.90.020, 64.90.025, and 64.90.030, this Declaration shall
not be subject to the Washington Uniform Common Interest Ownership Act, Ch. 64.90 RCW
(the “Act”): The Plat contains no more than twelve units; the Declarant has not reserved
development rights, as such term is defined by the Act; and the annual average assessment of all
Lots shall not exceed three hundred dollars ($300.00), as adjusted pursuant to RCW 64.90.065,
exclusive of optional user fees and any insurance premiums paid by the Association, which
amount the Declarant reasonably believes in good faith will be sufficient to pay the expenses of
the Association for the community, and which amount shall not be increased except in
accordance with this Declaration.
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The Declarant has created a non-profit corporation known as the Sapphire on 106th
Homeowner Association (hereafter referred to as the “Association”). The Association shall be
delegated and assigned the duties and powers of owning, maintaining, and administering any
and all Common Elements and related facilities in the Plat, administering and enforcing these
covenants, conditions and restrictions, and collecting and disbursing the assessments and charges
hereinafter created. The Association shall also have the right and power to promulgate rules and
regulations which may further define and limit permissible uses and activities consistent with
the provisions of this Declaration.
NOW, THEREFORE, the undersigned hereby covenants, agrees, and declares that all of the Plat,
as defined herein and the buildings and structures hereafter constructed thereon are, and will be,
held, sold, and conveyed subject to and burdened by the following covenants, conditions, and
restrictions, for the purpose of enhancing and protecting the value, desirability, and attractiveness
of the Plat for the benefit of the Owners thereof, their heirs, successors, grantees, and assigns.
ARTICLE 1
INTERPRETATION
1.1 Liberal Construction. The provisions of the Declaration shall be liberally
construed to effectuate its purpose of creating a uniform plan for the operation and maintenance
of the Plat.
1.2 Covenant Running with Land. It is intended that this Declaration shall be
operative as a set of covenants running with the land, or equitable servitudes, binding on
Declarant, its successors, heirs, executors, administrators, devisees or assigns. Any conveyance,
transfer, sale, assignment, lease or sublease of a Lot in the Plat, shall and hereby is deemed to
incorporate by reference all provisions of the Declaration.
1.3 Declarant is Original Owner. SAPPHIRE HOMES, INC., is the original Owner
of all Lots and Plat and will continue to be deemed the Owner thereof except as conveyances or
documents changing such Ownership regarding specifically described Lots or portions of the
Plat are filed of record.
1.4 Captions. 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.
1.5 Definitions.
1.5.1 “Association” shall mean the Sapphire on 106th Homeowner Association,
its successors and assigns.
1.5.2 “Board” shall mean the Board of Directors of the Association provided
for in Article 5.
1.5.3 “Bylaws” shall mean the duly adopted bylaws of the Association.
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1.5.4 “Common Elements” shall mean and refer to all real property that is
owned or maintained by the Association, including shared improvements, shared landscaping,
and Tract A of the Plat which is a Public Drainage Tract.
1.5.5 “Declarant” shall mean Sapphire Homes, Inc., its successors and assigns
if such successors or assigns should acquire more than one undeveloped Lot from the Declarant
for the purpose of development and by written instrument in recordable form be specifically
assigned the rights and duties of Declarant.
1.5.6 “Declaration” shall mean this declaration and any amendments thereto.
1.5.7 “Home” shall mean and refer to any structure or portion of a structure,
located on a Lot, which structure is designed and intended for use and occupancy as a residence
or which is intended for use in connection with such residence.
1.5.8 “Lot” shall mean and refer to any plot of land shown upon any recorded
Plat Map of the Plat. Lot shall not include any land now or hereafter owned by the Association
or by all of the lot Owners as tenants in common, nor included any land shown on a Plat Map
but dedicated to the public or to a government entity.
1.5.9 “Mortgage” shall mean a recorded mortgage or deed of trust that creates
a lien against a Lot and shall also mean a real estate contract for the sale of a Lot.
1.5.10 “Mortgagee” shall mean the beneficial Owner, or the designee of the
beneficial Owner, of an encumbrance on a Lot created by mortgage or deed of trust and shall
also mean the vendor, or designee of a vendor, of a real estate contract for the sale of a Lot.
1.5.11 “Owner” shall mean and refer to the record Owner, whether one or more
persons or entities, of a fee simple title to any Lot which is a part of the Plat, and, except as may
be otherwise expressly provided herein, shall in the case of a Lot which has been sold pursuant
to a real estate contract, include any person of record holding a vendee’s interest under such real
estate contract, to the exclusion of the vendor thereunder. Any person or entity having such
interest merely as security for the performance of an obligation shall not be considered an Owner.
1.5.12 “Person” shall include natural persons, partnerships, limited liability
companies, corporations, associations and personal representatives.
1.5.13 “Plat” shall mean and refer to the Plat map of Plat of Sapphire on 106th
as recorded in Book ____ of Surveys, Pages ___ through __, Records; of King County, State of
Washington, under Recording No. _____________________.
1.5.14 “Tract” shall mean and refer to those portions of the recorded Plat which
are so designated and which are generally held for purposes other than use as lots for construction
of a residence, including Tract A - Public Drainage Tract.
1.6 Percentage of Mortgagees. For purposes of determining the percentage of first
mortgagees approving a proposed decision or course of action, a mortgagee shall be deemed a
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separate mortgagee for each Lot on which it holds a mortgage that constitutes a first lien on said
Lot.
1.7 Percentage of Owners. For purposes of determining the percentage of Owners
approving a proposed decision or course of action, an Owner shall be deemed a separate Owner
for each Lot owned.
ARTICLE 2
MAINTENANCE OF COMMON ELEMENTS
2.1 Ownership of Common Elements. The Common Elements shall for all
purposes be under the control, management and administration of the Declarant during the period
of Declarant’s management authority pursuant to Section 5.2, and under the control,
management and administration of the Association thereafter. Except as set forth in Section 2.2.
below, the Association (and the Owners who are members thereof) have the responsibility and
obligation to maintain, repair and administer the Common Elements in a clean, attractive,
sanitary and safe condition and in full compliance with applicable, governmental laws, rules and
regulations and the provisions of this Declaration. In the event the Association fails to meet its
maintenance responsibilities for the Common Elements, each Lot owner will have an equal and
undivided responsibility for such maintenance and is jointly liable for the failure to do so.
2.2 Maintenance of Tract A. Tract A is a stormwater and tree protection tract. Upon
recording of the Map, Tract A was conveyed to the Association. Pursuant to RMC 4-6-030(F)(1),
the City of Renton shall be responsible for maintaining the drainage facilities within Tract A.
Upon recording of the Map, a drainage easement over Tract A was granted to the City of Renton
for conveying, storing, managing and facilitating storm and surface water, together with the right
for the City of Renton, its successors or assigns, to enter said drainage easement for the purpose
of inspecting, operating, maintaining, repairing and improving the drainage facilities contained
therein. Maintenance of all other improvements on Tract A, including landscaping, monuments,
trees, and recreational facilities, shall be the responsibility of the Association. The Association
is responsible for the cost for the restoration of any non-drainage improvements removed or
altered as the result of the maintenance, repair, improvement and reconstruction of the drainage
improvements. The Association shall obtain any required permits from the City of Renton, or its
successor agency, prior to activities such as clearing and grading, filling, piping, cutting or
removing vegetation (except for routine landscape maintenance such as lawn mowing) in
drainage facilities or performing any alterations or modifications to the drainage facilities
contained within said drainage easement.
ARTICLE 3
OWNER’S PROPERTY RIGHTS
3.1 Owner’s Rights of Enjoyment. Every Owner shall have a non-exclusive right,
in common with all Owners, of enjoyment in and to the Common Elements that shall be
appurtenant to and shall pass with the title to every Lot, subject to the following provisions:
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3.1.1 The rights of the Association to dedicate or transfer all or any part of the
Common Elements, including easements across said properties, to any public agency, authority,
or utility for such purposes and subject to such conditions as may be agreed to by the members
of the Association.
3.1.2 The right of the Association, in accordance with this Declaration and its
Articles of Incorporation and Bylaws, to borrow money for the purpose of improving the
Common Elements and in aid thereof to mortgage said property, but the rights of such mortgagee
in said property shall be subordinate to the rights of the Owners hereunder and subject to the
provisions of Section 15.5; provided, however, that Tract A shall not be mortgaged.
3.1.3 The right of the Association to take such steps as are reasonably necessary
to protect any property mortgaged in accordance with Section 3.1.2 against foreclosure,
including, but not limited to, the right to charge admission and other fees as a condition to
continued enjoyment by the Owners and, if necessary, to open the enjoyment of such properties
to the public.
3.1.4 While under Declarant’s management authority pursuant to Section 5.2,
the exercise of all the rights and powers set forth in Subsections 3.1.1, 3.1.2 and 3.1.3 shall
require the prior written approval of Declarant.
3.2 Delegation of Use. Any Owner may delegate (in accordance with the Bylaws),
his/her right of enjoyment of the Common Elements to the members of his/her family, or his/her
tenants or contract purchasers who reside on the Owner’s Lot and (subject to regulation by the
Association) to his/her temporary guests.
ARTICLE 4
OWNERS’ ASSOCIATION
4.1 Establishment. There is hereby created an association to be called Sapphire on
106th Homeowner Association (referred to hereinafter as the “Association”).
4.2 Form of Association. The Association shall be a nonprofit corporation formed
and operated pursuant to the Title 24 and Chapter 64.38, Revised Code of Washington. In the
event of any conflict between this Declaration and the Articles of Incorporation or Bylaws for
such nonprofit corporation, the provisions of the Declaration shall prevail.
4.3 Membership.
4.3.1 Qualification. Each Owner of a Lot in the Plat (including Declarant)
shall be a member of the Association and shall be entitled to one membership for each Lot so
owned. Ownership of a Lot shall be the sole qualification for membership in the Association.
4.3.2 Transfer of Membership. The Association membership of each Owner
(including Declarant) shall be appurtenant to the Lot giving rise to such membership, and shall
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not be assigned, conveyed, pledged or alienated in any way except upon the transfer of title to
said Lot and then only to the transferee of title to such Lot. Any attempt to make a prohibited
transfer of membership shall be void. Any transfer of title to a Lot shall operate automatically
to transfer the membership in the Association appurtenant hereto to the new Owner thereof.
4.4 Voting. Every Owner shall be entitled to vote in accordance with the provisions
of the Articles of Incorporation and Bylaws of the Association.
4.5 Bylaws of Association. Bylaws for the administration of the Association and the
Plat and to further the intent of the Declaration, may be adopted or amended by the Owners at a
regular or special meeting, provided, that the initial Bylaws shall be adopted by Declarant. In
the event of any conflict between this Declaration and any Bylaws, the provisions of this
Declaration shall prevail.
ARTICLE 5
MANAGEMENT OF THE ASSOCIATION
5.1 Administration of the Development. The Owners covenant and agree that the
administration of the Plat shall be in accordance with the provisions of this Declaration and the
Bylaws of the Association.
5.2 Management by Declarant. The Plat shall be managed on behalf of the
Association by the Declarant until the earlier of (a) one hundred twenty (120) days after ninety
percent (90%) of the Lots are sold by Declarant, or (b) the date on which Declarant elects to
permanently relinquish all of its authority under this Section 5.2 by written notice to all Owners.
So long as Declarant is managing the Plat, Declarant or a managing agent selected by Declarant
shall have the exclusive power and authority to exercise all the rights, duties and functions of the
Board and the Association set forth or necessarily implied in this Declaration, provided however,
that the Association may not be bound directly or indirectly to any contracts or leases without
the right of termination exercisable without cause and without penalty at any time after transfer
of control to the Board elected pursuant to Section 5.3, upon not more than ninety (90) days’
notice to the other party to the contract.
5.3 Management by Elected Board of Directors. At the expiration of Declarant’s
management authority under Section 5.2, power and authority shall vest in the Board of Directors
elected from among the Lot Owners. The number of directors shall be specified in the Bylaws
and shall be sufficient to adequately handle the affairs of the Association. The Board may
delegate all or any portion of its management duties to a managing agent or officer of the
Association as provided for in the Bylaws. All Board offices shall be open for election at an
organizational meeting. The Board shall elect from among its members a president who shall
preside over meetings of the Board and the meetings of the Association.
5.4 Authority and Duties of the Board. On behalf of and acting for the Association,
the Board (or the Declarant or Declarant’s managing agent as provided in Section 5.2 hereof),
for the benefit of the Plat and the Owners, shall have all powers and authority permitted to the
Board under this Declaration and any applicable law, including but not limited to the following:
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5.4.1 Assessments. Establish and collect regular assessments (and to the extent
necessary and permitted hereunder, special assessments) to defray expenses attributable to
carrying out its duties hereunder and maintain an adequate reserve fund for the operation,
maintenance, repair, improvement and replacement of those portions of the Common Elements
which must be maintained, repaired or replaced on a periodic basis, which reserve shall be funded
by the above assessments. The Association may impose and collect charges for late payments
of assessments.
5.4.2 Services. Obtain the services of persons or firms as required to properly
manage the affairs of the Plat to the extent deemed advisable by the Board including legal and
accounting services, property management services as well as such other personnel as the Board
shall determine are necessary or proper for the operation of the Common Elements, whether such
personnel are employed directly by the Board or are furnished by the manager or management
firm or agent.
5.4.3 Utilities. Obtain water, sewer, garbage collection, electrical, telephone,
gas and any other necessary utility easements and street lighting, as required for the Common
Elements.
5.4.4 Insurance. Obtain and pay for policies of insurance or bonds providing
Common Elements casualty and liability coverage, and for fidelity of Association officers and
other employees, the requirements of which are more fully set forth in Article 14.
5.4.5 Maintenance and Repair of Common Elements. Pay for the cost of
painting, maintenance, repair of all landscaping and gardening work for all Common Elements,
and improvements located thereon, so as to keep the Plat in a good, clean, attractive, sanitary
and safe condition and in full compliance with applicable governmental laws, rules and
regulation and the provisions of this Declaration.
5.4.6 Maintenance of Rights of Way, etc. Pay for the costs of maintaining
and landscaping of rights of way, traffic islands and medians, or other similar areas which are
not part of the Lots or Common Elements but which are within or adjacent to the Plat boundaries,
and which are owned by or dedicated to a governmental entity, if said governmental entity fails
to do so; provided, the Lot Owner at the Owner’s expense (rather than the Association) shall
maintain and landscape such areas as are adjacent to such Owner’s Lot.
5.4.7 Fences, Landscaping, etc. To the extent deemed advisable by the Board,
pay for the cost of constructing, maintaining, repairing and replacing perimeter and interior
fences, and landscaping and improvements on easements, if any, which are located on or across
Lots including the common landscape area within Tract A Stormwater and Tree Protection tract
adjacent to Lot 1 provided, the Board at its option may require a Lot Owner at the Owner’s
expense to maintain, repair and replace such fences, landscaping and improvements as are
adjacent to such Owner’s Lot.
5.4.8 Enforce Declaration. Enforce the applicable provisions of the
Declaration for the management and control of the Plat.
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5.4.9 Contracting and Payment for Materials, Services, etc. Contract and
pay for any materials, supplies, labor or services which the Board should determine are necessary
or proper for the enforcement of this Declaration, including legal, accounting, management or
other services, provided that if for any reason any materials, supplies, labor or services are
provided for particular Lots or their Owners, the cost thereof shall be specially charged to the
Owners of such Lots
5.4.10 Attorney-in-Fact. Each Owner, by the mere act of becoming an Owner,
shall irrevocably appoint the Association as his/her attorney-in-fact, with full power of
substitution, to take such action as reasonably necessary to promptly perform the duties of the
Association and Board hereunder, including but not limited to the duties to maintain, repair and
improve the Plat, to deal with the Plat upon damage or destruction, to grant easements and
licenses over Common Elements, and to secure insurance proceeds.
5.4.11 Borrowing of Funds. In the discharge of its duties and the exercise of its
powers as set forth herein, but subject to the limitations set forth herein, the Board may borrow
funds on behalf of the Association.
5.4.12 Adoption of Rules and Regulation: Fines. When and to the extent
deemed advisable by the board, to adopt reasonable rules and regulations governing the
maintenance and use of the Plat and other matters of mutual concern to the Lot Owners, which
rules and regulations are not inconsistent with this Declaration and the Bylaws and which treat
all Owners fairly and on a non-discriminatory basis, the Board may impose and collect charges
for late payments of assessments and, after notice and an opportunity to be heard by the Board
or by a representative designated by the Board in accordance with procedures as provided in the
Bylaws or rules and regulations adopted by the Board, levy reasonable fines in accordance with
a previously established schedule adopted by the Board and furnished to the Owners for violation
of the Bylaws, rules and regulation of the Association.
5.4.13 Additional Powers of Association. In addition to the duties and powers
of the Association as specified in this Declaration, but subject to the provisions of this
Declaration, the Association, acting through its Board, shall have the power to do all other things
that it may deem reasonably necessary to carry out its duties and the purposes of the Declaration.
ARTICLE 6
USE AND MAINTENANCE OBLIGATION OF OWNERS
6.1 Easements. Easements for the installation and maintenance of utilities, drainage
and irrigation facilities are reserved as shown on the Plat Map and as described in Article 11.
Within these easements no structure, planting or other materials shall be placed or permitted to
remain which may damage or interfere with the installation and/or maintenance of such utilities,
or which may change the directions of flow of water through a drainage channel in the easement,
or which may obstruct or retard the flow of water through drainage channels in the easement.
Except as otherwise provided in Section 11.4, any easement or portion thereof located on any
Lot and all improvements thereon shall be maintained continuously by the Lot Owner.
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6.2 Common Drives. Common drives, walks (if any) and paths (if any) shall be used
exclusively for normal transit and no obstructions shall be placed thereon of therein except by
express written consent of the Board.
6.3 Storm Runoff. Each Lot Owner shall ensure that all roof down spout drains are
properly cleaned and maintained, and that the Tight Line Drainage lines on each Lot are clean
and free of any debris. Due diligence shall be exercised by each Lot Owner to prevent adverse
impact of storm runoff onto downstream Lots.
6.4 Access Road and Stormwater Operations and Maintenance. It is the
responsibility of the Association to maintain the access road including the road stormwater
collection system, until such time that those improvements are deeded or sold to a government
agency, which will assume maintenance and responsibility of such improvements. These
covenants may not be amended to eliminate the requirements to maintain the storm water
facilities, private roadways and other Common Elements, or permitting conveyance of those
features to a third party without the written permission of the City of Renton.
ARTICLE 7
COMMON EXPENSES AND ASSESSMENTS
7.1 Creation of the Lien and Personal Obligation of Assessments. The Declarant,
for each Lot owned within the Plat, hereby covenants, and each Owner of any Lot by acceptance
of a deed therefore, whether or not it shall be so expressed in such deed, is deemed to covenant
and agree to pay to the Association any assessment duly levied by the Association as provided
herein. Such assessments, together with interest, costs, late charges and reasonable attorneys’
fees, shall be a charge on the land and shall be a continuing lien upon the property against which
each such assessment is made. Each such assessment, together with interest, costs, late charges
and reasonable attorneys’ fees, shall also be the personal obligation of the person who was the
Owner of such property at the time when the assessment fell due. The personal obligation for
delinquent assessments shall not pass to successors in title unless the lien for such delinquent
assessments had been properly recorded prior to the title transfer or unless expressly assumed by
them. Provided, however, that in the case of a sale of any Lot which is charged with the payment
of an assessment or assessments payable in installments, the person or entity who is the Owner
immediately prior to the date of any such sale shall be personally liable for installments that
become due on and after said date.
7.2 Uniform Rate. Any assessments which may be levied from time to time pursuant
to the authority of the Board as set forth in Section 5.4.1, shall be fixed at a uniform rate for each
Lot, except for assessments levied against an Owner for the purpose of reimbursing the
Association for cost incurred in bringing the Owner or his/her Home and/or Lot into compliance
with the provisions of this Declaration. Declarant shall not be obligated to pay any assessment
levied against any Lots of this Declaration. Declarant shall not be obligated to pay any
assessment levied against any Lots owned by it. An assessment against a Lot shall be the joint
and several personal obligation of all Owners of that Lot.
7.3 Limitation on Annual Assessment Amount.
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7.3.1 Board Authority. At any time after the sale of the first Lot by the
Declarant (whether to a builder or otherwise), the Board shall have the authority, without
obtaining prior approval of the Owners, to levy assessments in a given calendar year totaling not
more than three hundred dollars ($300.00) per Lot, as may be adjusted pursuant to RCW
64.90.065; provided, that the assessments subject to the three hundred dollar ($300.00) cap shall
not include optional user fees; any insurance premiums paid by the Association; or any
assessments which are levied against an Owner for reimbursing the Association for costs
incurred in bringing the Lot Owner or his/her Home and/or Lot into compliance with the
provision of this Declaration nor any initial assessments provided for in Section 7.3.
Notwithstanding the provision set forth above, the Declarant shall not be liable for any fees or
assessments assessed or due so long as Declarant owns any Lot.
7.3.2 Increase in Assessments. During the Declarant’s management of the
Association pursuant to Section 5.2, the maximum dollar amount specified in Section 7.4.1, as
may be adjusted pursuant to RCW 64.90.065, shall not be increased without the approval of Lot
Owners, excluding the Declarant, holding ninety percent (90%) of the votes of the Association,
at a meeting duly called for such purpose.
7.3.3 Owner Approval Required. Any assessment to be levied in a given
calendar year which would cause the total of all assessments for the year to exceed the sum per
Lot permitted by Section 7.4.1 and 7.4.2 shall require the calling of a meeting of the Association
upon notice sent to all members not less than thirty (30) nor more than sixty (60) days in advance
of the meeting, and the approval at such meeting of the levy of such assessment by a majority of
the Lots represented at such meeting, provided a quorum is present as defined in the Bylaws.
7.4 Manner and Time of Payment. Assessments shall be payable by each Owner
in such reasonable manner as the Board shall designate. Any assessment or installment thereof
which remains unpaid for at least fifteen (15) days after the due date thereof shall bear interest
at an annual rate equal to fifteen percent (15%), and the Board may also assess a late charge in
an amount not exceeding twenty-five (25%) of any unpaid assessment which has been delinquent
for more than fifteen (15) days.
7.5 Accounts. Any assessments collected by the Association shall be deposited in
one (1) or more insured institutional depository accounts established by the Board. The Board
shall have exclusive control of such accounts and shall maintain accurate records thereof,
provided, however, that the Board may exercise such control through a property manager
retained pursuant to Section 5.4.2. No withdrawal shall be made from said accounts except to
pay for charges and expenses authorized by this Declaration.
7.6 Lien. In the event any assessment or installment thereof remains delinquent for
more than thirty (30) days, the Board may, upon fifteen (15) days written notice to the Owner of
such Lot of the existence of the default, accelerate and demand immediate payment of the entire
assessment. The amount of any assessment assessed or charged to any Lot plus interest, cost,
late charges and reasonable attorneys’ fees, shall be a lien upon such Lot. A claim of lien may
be recorded in the office where real estate conveyances are recorded for the county in which this
Plat is located. Such claim of lien may be filed at any time at least fifteen (15) days following
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delivery of the notice of default referred to above. The lien for payment of such assessments and
charges shall have priority over all other liens and encumbrances, recorded or unrecorded,
limited as provided in Section 10.1. Suit to recover a money judgment for unpaid assessments
or charges shall be maintainable with or without foreclosure or waiver of the lien securing the
same.
7.7 Waiver of Homestead. Each Owner hereby waives, to the extent of any liens
created pursuant to this Article, the benefit of any homestead or exemption law in effect at the
time any assessment or installment thereof becomes delinquent or any lien is imposed pursuant
to the terms hereof.
7.8 Continuing Liability for Assessments. No Owner may exempt himself/herself
from liability for his/her Assessments by abandonment of his/her Lot.
7.9 Records, Financial Statements. The Board shall prepare or cause to be
prepared, for any calendar year in which the Association levies or collects any assessments, and
shall distribute to all Owners, a balance sheet and an operating (income/expense) statement for
the Association, which shall include a schedule of assessments received and receivable,
identified by the number of the Lot and the name of the Owner so assessed. The Board shall
cause detailed and accurate records of the receipts and expenditures of the Association to be kept
specifying and itemizing the maintenance, operating, and any other expenses incurred. Such
records, copies of this Declaration, the Articles and the Bylaws, and any resolution authorizing
expenditures of Association funds shall be available for examination by any Owner at reasonably
convenient hours.
7.10 Certificate of Assessment. A certificate executed and acknowledged by the
treasurer or the president of the Board, or an authorized agent thereof if neither the president nor
treasurer is available, stating the indebtedness for assessments and charges or lack thereof
secured by the assessment lien upon any Lot shall be conclusive upon the Association as to the
amount of such indebtedness on the date of the certificate, in favor of all persons who rely
thereon in good faith. Such a certificate shall be furnished to any Owner or any encumbrancer
of a Lot within a reasonable time after request, in recordable form, at a reasonable fee. Unless
otherwise prohibited by law, any encumbrancer holding a lien on a Lot may pay any unpaid
assessments or charges with respect to such Lot, and, upon such payment, shall have a lien on
such Lot for the amounts paid of the same rank as the lien of his/her encumbrance.
7.11 Foreclosure of Assessment Lien, Attorneys’ Fees and Costs. The Declarant or
Board, on behalf of the Association, may initiate action to foreclose the lien of, or collect, any
assessment. In any action to foreclose the lien of, or otherwise collect, delinquent assessments
or charges, any judgment rendered in favor of the Association shall include a reasonable sum for
attorneys’ fees and all costs and expenses reasonably incurred in preparation for or in the
prosecution of said action (including in any arbitration, on appeal, and in any bankruptcy
proceeding), in addition to taxable costs permitted by law.
7.12 Curing of Default. The Board shall prepare and record a satisfaction and release
of the lien for which a claim of lien has been filed and recorded in accordance with this Article
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upon timely payment or other satisfaction of all delinquent assessments set forth in the Notice,
and all other assessments which have become due and payable following the date of such
recordation with respect to the Lot as to which such claim of lien was recorded, together with all
costs, late charges and interest which have accrued thereon. An additional administrative fee of
twenty-five dollars ($25.00) covering the cost of preparation and recordation shall be paid to the
Association prior to such action. The satisfaction of the lien created by the claim of lien shall be
executed by the president or treasurer of the Association or by any authorized representative of
the Board. For the purposes of this paragraph, the term “costs” shall include costs and expenses
actually incurred or expended by the Association in connection with the cost of preparation and
recordation of the claim of lien and in efforts to collect the delinquent assessments secured by
the lien and a reasonable sum for attorneys’ fees.
7.13 Omission of Assessment. The omission by the Board or the Association to fix
the estimate for assessments and charges hereunder for the next year before the expiration of any
current year shall not be deemed a waiver or modification in any respect of the provisions of this
Declaration, or a release of the Owner from the obligation to pay the assessments and charges,
or any installment thereof for that or any subsequent year. The assessment and charge fixed for
the preceding year shall continue until a new assessment or charge is fixed.
7.14 Assessment Deposit. A Lot Owner may be required, by the Board or by the
managing agent, from time to time, to make and maintain a deposit of not more than the total of
one (1) annual assessment, plus either one (1) special assessment if special assessments are
payable on an annual basis, or three (3) special assessment installments if special assessments
are payable on a monthly or other periodic basis. Such deposit may be collected as are other
assessments and charges. Such deposit shall be held in a separate fund, be credited to such
Owner, and be for the purpose of establishing a working capital fund for the initial Plat operations
and a reserve for delinquent assessments. Resort may be had thereto at any time when such
Owner is ten (10) days or more delinquent in paying his/her assessments and charges, to meet
unforeseen expenditures, to acquire additional equipment or services deemed necessary or
desirable by the Board, or as a credit against any annual or special assessments to become due
from such Owner. Said deposits shall not be considered as advance payments of annual
assessments. All or any portion of such deposit may at any time be refunded to the Owner by
the Association in the discretion of the Board, such refund being made as a cash refund or a
credit against assessments subsequently to become due or a combination thereof.
7.15 Exempt Property. The following property subject to this Declaration shall be
exempt from the assessments created herein:
7.15.1 All properties dedicated to and accepted by a governmental entity,
7.15.2 All properties owned by a charitable or nonprofit organization or an
organization exempt from taxation by the laws of the state of Washington.
However, the land or improvements, which are referred to in Sections 7.16.1, and 7.16.2 and
which are devoted to dwelling use, shall not be exempted from said assessments.
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7.16 Effect of Legal Proceedings. In any legal proceeding commenced pursuant to
Section 8.1.1, and notwithstanding the assessment limitation provided for in the Declaration, the
court having jurisdiction over such proceeding shall also have jurisdiction and power to cause
assessments to be levied and collected on an equal per Lot basis in such amounts as is reasonably
necessary to cause the Plat to be properly administered in accordance with the provisions of this
Declaration and the Bylaws, or to cause the provisions of this Declaration and the Bylaws to be
properly applied and enforced.
ARTICLE 8
COMPLIANCE WITH DECLARATION
8.1 Enforcement.
8.1.1 Compliance of Owner. Each Owner, Board member and the Association
shall comply strictly with the provisions of this Declaration and with the Bylaws and
administrative rules and regulations adopted by the Association (as the same may be lawfully
amended from time to time). Failure to comply shall be grounds for an action to recover sums
due for damages, or injunctive relief, or both, maintainable by the Board (acting through its
officers on behalf of the Association and the Owners), or by the aggrieved Owner on his/her own
against the party (including an Owner or the Association) failing to comply. The provisions of
the Declaration shall be enforceable by Declarant, any Lot Owner, the Association, and any first
mortgagee of any Lot. In addition, the Association may impose and collect fines as provided in
Section 5.4.12 of this Declaration.
8.1.2 Compliance of Lessee. Each Owner who shall rent or lease his/her Lot
shall insure that the lease or rental agreement is in writing and subject to the terms of this
Declaration, Articles of Incorporation, and Bylaws. Said agreement shall further provide that
failure of any lessee to comply with the provisions of said documents shall be a default under
the lease.
8.1.3 Attorneys’ Fees. In any action to enforce the provisions of this
Declaration, the Articles of Incorporation or the Bylaws, the prevailing party in such legal action
shall be entitled to an award for reasonable attorneys’ fees and all costs and expenses reasonably
incurred in preparation for or prosecution of said action (including in any arbitration, on appeal
or in any bankruptcy proceeding), in addition to taxable costs permitted by law.
8.2 No Waiver of Strict Performance. The failure of the Board, or Declarant or
Declarant’s managing agent, as applicable, in any one or more instances to insist upon or enforce
the strict performance of any of the terms, covenants, conditions or restrictions of this
Declaration, or of any Bylaws or administrative rules or regulations, shall not be construed 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. No waiver by
the Board of any provision hereof shall be deemed to have been made unless expressed in writing
and signed by the Board.
8.3 Right of Entry. Violation of any of the provisions hereof shall give to Declarant,
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its successors, or the Association, the right to enter upon the Lot as to which such violation exists
and to abate, correct and remove, at the expense of the Owner thereof, any erection, thing or
condition that may be or exists thereon contrary to the provisions hereof. Such entry shall be
made only after three (3) days’ notice to said Owner and with as little inconvenience to the
Owner as possible, and any damage caused thereby shall be repaired by the Association.
Declarant, its successors, or the Association shall not be deemed guilty of any manner of trespass
by such entry, abatement or removal.
8.4 Remedies Cumulative. The remedies provided are cumulative, and the Board
may pursue them concurrently, as well as any other remedies that may be available under law
although not expressed herein.
ARTICLE 9
LIMITATION OF LIABILITY
9.1 No Personal Liability. So long as a Board member, Association committee
member, Association officer, Association agent, or Declarant exercising the powers of the Board,
has acted in good faith, without willful or intentional misconduct, upon the basis of such
information as may be possessed by such person, no such person shall be personally liable to
any Owner, or other party, including the Association, for any damage, loss or prejudice suffered
or claimed on account of any act, omission, error, negligence (except gross negligence), any
discretionary decision, or failure to make a discretionary decision, by such person in such
person’s official capacity, PROVIDED, that this Section shall not apply where the consequences
of such act, omission, error or negligence are covered by insurance or bonds obtained by the
Board pursuant to this Declaration.
9.2 Indemnification of Board Members. Each Board member or Association
committee member, or Association officer, Association agent, or Declarant exercising the
powers of the Board, and their respective heirs and successors, shall be indemnified by the
Association against all expenses and liabilities, including attorneys’ fees, reasonably incurred by
or imposed in connection with any proceeding to which he/she may be a party, or in which he/she
may become involved, by reason of being or having held such position at the time such expenses
or liabilities are incurred, except in such cases wherein such person is adjudged guilty of
intentional misconduct or gross negligence or a knowing violation of law in the performance of
his/her duties, and except in such cases where such person has participated in a transaction from
which said person will personally receive a benefit in money, property, or services to which said
person is not legally entitled, PROVIDED, that, in the event of a settlement, the indemnification
shall apply only when the Board approves such settlement and reimbursement as being in the
best interest of the Association. Nothing contained in this Section 9.2 shall, however, be deemed
to obligate the Association to indemnify any Member or Owner of a Lot who is or has been a
Board member or officer of the Association with respect to any duties or obligation assumed or
liabilities incurred by him under and by virtue of the Declaration as a Member or Owner of a Lot
covered thereby and not as a Board member or officer of the Association.
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ARTICLE 10
MORTGAGEE PROTECTION
10.1 Priority of Mortgagee. Notwithstanding all other provisions hereof, the liens
created under this Declaration upon any Lot for assessments shall be subject to tax liens on the
Lot in favor of any assessing unit and/or special district and be subject to the rights of the secured
party in the case of any indebtedness secured by first lien Mortgages which were made in good
faith and for value upon the Lot. Where the Mortgagee of a Lot, or other purchaser of a Lot,
obtains possession of a Lot as a result of Mortgage judicial or nonjudicial foreclosure or deed in
lieu thereof, such possessor and its successors and assigns shall not be liable for the share of any
assessment by the Association chargeable to such Lot which becomes due prior to such
possession, but will be liable for any assessment accruing after such possession. Such unpaid
share of common expenses or assessments shall be deemed to be common expenses collectible
from all of the Lot Owners including such possessor, its successor and assigns.
10.2 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 provision of this Article
concerning rights of Mortgagees that is inconsistent with any other provision of this Declaration
shall control over such other inconsistent provisions.
10.3 Rights of Lien Holder. A breach of any of the provisions, conditions, restriction,
covenants, easements or reservations herein contained shall not affect or impair the lien or charge
of any bona fide Mortgage made in good faith and for value on any Lots, provided, however,
that any subsequent Owner of the Lot shall be bound by these provisions whether such Owner’s
title was acquired by foreclosure or trustee’s sale or otherwise.
10.4 Change in Manner of Architectural Review and Maintenance Within Plat.
The Association shall not, without prior written approval of seventy-five percent (75%) of all
first Mortgagees (based upon one (1) vote for each first Mortgage owned) and seventy-five
percent (75%) of all Owners (other than Declarant) of record by act or omission change, waive
or abandon any scheme of regulations, or enforcement thereof, pertaining to the architectural
design or the exterior appearance of Homes, the exterior maintenance of Homes, maintenance of
walkways, fences and driveways, or the upkeep of lawns and plantings in the development,
including the provisions of Articles 2 and 5 hereof.
10.5 Copies of Notices. If the first Mortgagee of any Lot so requests the Association
in writing, the Association shall give written notice to such first Mortgagee of an
Owner/Mortgagor of a Lot has for more than sixty (60) days failed to meet any obligation under
this Declaration.
10.6 Furnishing of Documents. The Association shall make available to prospective
purchasers, Mortgagees, insurers, and guarantors, at their request, current copies of the
Declaration, Bylaws, and other rules governing the Plat, and the most recent balance sheet and
income/expense statement for the Association, if any has been prepared.
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ARTICLE 11
EASEMENTS
11.1 Association Functions. There is hereby reserved to Declarant and the
Association, or their duly authorized agents and representatives, such easements as are necessary
to perform the duties and obligations of the Association as are set forth in the Declaration, or in
the Bylaws, and rules and regulations adopted by the Association.
11.2 Easements Over Common Elements. The Board, on behalf of the Association
and all members thereof, and as an attorney-in-fact for all Lot Owners with an irrevocable power
coupled with an interest, shall have authority to grant (in accordance with applicable
governmental laws and regulations) utility, road and similar easements, licenses and permits,
under, through or over the Common Elements, which easements the Board determines are
reasonably necessary to the ongoing development and operation of the Plat.
11.3 Access to Public Streets. Each Owner and his/her guests and invitees shall have
a perpetual, non-exclusive easement across all roadways constructed within the Plat, thereby
providing access throughout the Plat and to public streets.
11.4 Utility Easements. On each Lot, easements are reserved as provided by the Plat
Map and applicable laws, ordinances and other governmental rules and regulations for utility
installation and maintenance, including but not limited to, underground electric power,
telephone, water, sewer, drainage, and accessory equipment, together with the right to enter upon
the Lots at all times for said purposes.
ARTICLE 12
TERM OF DECLARATION
12.1 Duration of Covenants. The covenants contained herein shall run with and bind
the land for a term of thirty (30) years from the date this Declaration is recorded, after which
time the covenants shall be automatically extended for successive periods of ten (10) years each,
unless an instrument executed in accordance with Section 13.1 below shall be recorded,
abandoning or terminating this Declaration.
12.2 Abandonment of Subdivision Status. The Association shall not, without the
prior written approval of the governmental entity having jurisdiction over the Plat and without
prior written approval of one hundred percent (100%) of all first Mortgagees (based upon one
(1) vote for each first Mortgage owned) and one hundred percent (100%) of all Owners (other
than Declarant) of record, seek by act or omission to abandon or terminate the subdivision status
of the Plat as approved by the governmental entity having appropriate jurisdiction over the Plat.
ARTICLE 13
AMENDMENT OF DECLARATION
13.1 Declaration Amendment. Amendments to the Declaration shall be made by an
instrument in writing entitled “Amendment to Declaration” which sets forth the entire
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amendment, except as otherwise specifically provided for in this Declaration, any proposed
amendment must be approved by a majority of the Board prior to its adoption by the Owners.
Amendments may be adopted at a meeting of the Owners if the Owners vote for such amendment
or without any meeting if all Owners have been duly notified and all the Owners consent in
writing to such amendment. Notwithstanding the foregoing, any amendment to a provision of
the Declaration establishing, providing for, governing or regulating the following shall require
the consent of all the Owners and all the Mortgagees and the consent of the Declarant (so long
as Declarant owns any Lots): voting, assessments, assessment liens or subordination of such
liens, reserves for maintenance, repair and replacements of Common Elements, insurance or
bonds; use of Common Elements, responsibility for maintenance or repairs, expansion or
construction of the Plat or the addition, annexation or withdrawal of property to or from the Plat,
boundaries of Lots, converting of Facilities into Common Elements or vice versa; dedicating or
transferring all or any part of the Common Elements to any public agency, authority or utility,
leasing of Lots; provisions for the benefit of the Declarant, provisions for benefit of first
Mortgagees, or holders, insures or guarantors of first Mortgages, the interests in Common
Elements; or imposition of any right of first refusal or similar restrictions on the right of an
Owner to sell, transfer or otherwise convey a Lot, provided, that a Mortgagee who fails to
respond in writing within thirty (30) days of a written request to approve an amendment shall be
deemed to have approved the request. In all events, the amendment when adopted shall bear the
signature of the president of the Association and shall be attested by the secretary, who shall
state whether the amendment was properly adopted, and shall be acknowledged by them as
officers of the Association. Amendments once properly adopted shall be effective upon
recording in the appropriate governmental offices where real estate conveyances are recorded
for the county in which the Plat is located. It is specifically covenanted and understood that any
amendment to this Declaration properly adopted will be completely effective to amend any or
all of the covenants, conditions and restrictions contained herein that may be affected and any or
all clauses of this Declaration unless otherwise specifically provided in the Section being
amended or the amendment itself. Notwithstanding the foregoing, this Declaration may not be
amended to eliminate the requirement to own and maintain the Common Elements as described
in Article 2, as required by approval of this Plat, without the prior approval of the City of Renton.
13.2 Amendments to Conform to Lending Institution Guidelines. Declarant, upon
Declarant’s sole signature, and as an attorney-in-fact for all Lot Owners with an irrevocable
power coupled with an interest, may at any time, until all Lots have been sold by Declarant, file
an amendment to the Declaration to conform data depicted therein to improvements as actually
constructed and to establish, vacate and relocate utility easements and access road easements.
ARTICLE 14
INSURANCE
14.1 Insurance. The Board shall have authority in the exercise of its discretion to
obtain and maintain at all times as a common expense a policy or policies and bonds of liability
insurance and property insurance covering the ownership, use and operation of all the Common
Elements (and Common Element improvements), if any, including common personal property
and supplies belonging to the Association; fidelity coverage for Association Board members
(including Declarant), officers, employees or agents, and such other insurance as the Board may
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deem advisable or as may be required by the Federal National Mortgage Association, Federal
Home Loan Mortgage Association, Veterans Administration or similar agencies or lending
institutions. In the event of damage to or destruction of any part of the Common Element
improvements, the Association shall repair or replace the same from the insurance proceeds
available. If such insurance proceeds are insufficient to cover the costs of repair or placement
of the property damaged or destroyed, the Association may make a reconstruction assessment
against all Lot Owners to cover the additional cost of repair or replacement not covered by the
insurance proceeds, in addition to any other common assessments made against such Lot
Owners.
ARTICLE 15
MISCELLANEOUS
15.1 Notices. Any written notice, or other document as required by this Declaration,
may be delivered personally or by mail. If by mail, such notice, unless expressly provided for
herein to the contrary with regard to the type of notice being given, shall be deemed to have been
delivered and received forty-eight (48) hours after a copy thereof has been deposited in the
United States first-class mail, postage prepaid, properly addresses as follows:
(a) If to an Owner, other than Declarant, to the registered address of such
Owner, as filed in writing with the Board pursuant to the requirements of the Bylaws, or if no
such address is filed, then to the address of the Owner’s Lot.
(b) If to Declarant, whether in its capacity as an Owner, or in any other
capacity, to the address which Declarant shall have advised the Board in writing.
(c) Prior to the expiration of the Declarant’s management authority pursuant
to Section 5.2, notices to the Board shall be addressed either to an address to be posted by the
Board at all times in a conspicuous place or to the registered office of the Association. In
addition, from and after the expiration of the Declarant’s management authority, notice of the
address of the Association shall be given by the Board to each Owner, within a reasonable time
after the Board has received actual notice of such Owner’s purchase of a Lot.
15.2 Conveyance, Notice Required. The right of an Owner to sell, transfer, or
otherwise convey his/her Lot shall not be subject to any right of approval, disapproval, first
refusal, or similar restriction by the Association or the Board or anyone acting on their behalf.
An Owner intending to sell a Lot shall deliver a written notice to the Board at least two (2) weeks
before closing, specifying the Lot being sold; the name and address of the purchaser, of the
closing agent, and of the title insurance company insuring the purchaser’s interest, and the
estimated closing date. The failure of an Owner to properly give such notice to the Board shall
not invalidate the sale. The Board shall have the right to notice the purchaser, the title insurance
company, and the closing agent of the amount of unpaid assessments and charges outstanding
against the Lot, whether or not such information is requested.
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15.3 Successor and Assigns. This Declaration shall be binding upon and shall inure
to the benefits of the heirs, personal representatives, successors and assigns of Declarant, and the
heirs, personal representatives, grantees, lessees, subleases and assignees of the Owners.
15.4 Joint and Several Liability. In the case of joint ownership of a 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.
15.5 Mortgagee’s Acceptance.
15.5.1 Priority of Mortgage. This Declaration shall not initially be binding
upon any Mortgagee of record at the time of recording of this Declaration but rather shall be
subject and subordinate to said Mortgage.
15.5.2 Acceptance Upon First Conveyance. Declarant shall not consummate
the conveyance of title to any Lot until each Mortgagee of record at the time of recording of this
Declaration shall have accepted the provisions of this Declaration and made appropriate
arrangements for partial release of Lots from the lien of said Mortgage. The issuance and
recording of the first such partial release by said Mortgagee shall constitute its acceptance of the
provisions of this Declaration and acknowledgment that this Declaration is binding upon all of
the Lots remaining subject to its Mortgage, provided, that, except as to Lots so released, said
Mortgage shall remain in full effect.
15.6 Severability. The provisions hereof shall be deemed independent and severable,
and the invalidity or partial invalidity or unenforceability of any one provision or portion thereof
shall not affect the validity or enforceability of any other provision hereof.
15.7 Effective Date. The Declaration shall take effect upon recording.
15.8 Government Right of Access. Governmental entities shall have rights of access
and inspection for the Common Elements and any drainage facilities contained therein.
[Signatures on Next Page]
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IN WITNESS WEREOF SAPPHIRE HOMES, INC. have executed this Declaration the
day and year first hereinabove written
SAPPHIRE HOMES, INC.
a Washington limited liability company
By:
Name:
Its:
STATE OF WASHINGTON )
) ss.
COUNTY OF _________ )
On this ____ day of __________________, ________, before me personally appeared
___________________________, to me known to be the ______________________ of the
corporation that executed the within and foregoing instrument, and acknowledged said
instrument to be the free and voluntary act and deed of said corporation, for the uses and purposes
therein mentioned, and on oath stated that he or she was authorized to execute said instrument.
In Witness Whereof, I have hereunto set my hand and affixed my official seal the day and year
first above written.
(Print Name)
In and for the State of Washington,
Notary Public, Residing at
My appointment expires:
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EXHIBIT A
LEGAL DESCRIPTION
LOT 10 AND LOT 11, BLOCK 4, AKER'S FARMS NO. 5, ACCORDING TO THE PLAT
THEREOF RECORDED VOLUME 40 OF PLATS, PAGE 27, RECORDS OF KING
COUNTY, WASHINGTON.
SITUATE IN THE CITY OF RENTON, COUNTY OF KING, STATE OF WASHINGTON