Dear Residents:

Please know, this policy establishes that when an individual becomes the owner of a Lot, they automatically agree to pay various assessments to the Association, including annual, special, and individual assessments, regardless of whether this obligation is stated in the deed. These assessments, along with any interest, costs, and reasonable attorney’s fees, create a lien on the Lot, meaning they are a legal claim against the property. This lien remains in effect as outlined by the law. Additionally, the owner is personally responsible for these assessments at the time they are due, but this personal obligation does not transfer to future owners unless they explicitly agree to assume it.

This policy is based on CC&R ARTICLE 8: ASSESSMENTS, dated January 4, 2018, sections:

ARTICLE 8: ASSESSMENTS

Enforcement of the lien for Assessments (an “Assessment Lien”) shall be as follows:

(a) Any Assessment, or any installment of an Assessment, not paid for a period of thirty
(30) days or longer after the Assessment, or the installment of the Assessment, first became due shall have added to such Assessment or installment, a late payment charge not to exceed the greater of (i) ten percent (10%) of the amount of the unpaid Assessment, or (ii) twenty dollars ($20.00) per month. Any amounts paid by a Member shall be applied first to unpaid principal and then to late charges or interest. Any Assessment, or any installment of an Assessment, which is delinquent shall become a continuing lien on the Lot against which such Assessment was made as provided in §47F-3-l 16 of the Act. The Assessment Lien may be placed of record in the office of the clerk of superior court in the county in which the Lot is located by filing a “Claim of Lien” in the manner set forth in §47F-3-116 of the Act.

(b) The Assessment Lien shall have priority over all liens or claims created subsequent to the recordation of this Declaration except for (i) tax liens for real Property taxes on the Lot, (ii) assessments on any Lot in favor of any municipal or other governmental body and (iii) the lien of any First Mortgage or the lien of any other encumbrance recorded before the docketing of the claim of lien in theoffice of the clerk of court.

(c) Before filing a Notice of Claim of Lien against any Lot, the Association shall make reasonable and diligent efforts to ensure that its records contain the Owner’s current mailing address and make a written demand to the defaulting Owner for payment of the delinquent Assessments together with late charges, interest, reasonable collection costs and reasonable attorneys’ fees, if any. The demand shall state the date and amount of the delinquency. Each default shall constitute a separate basis for a demand or claim of lien but any number of defaults may be included within a single demand or claim of lien. If the delinquency is not paid within fifteen (15) days after delivery of the demand, the Association may proceed with filing a Claim of Lien against the Lot of the defaulting Owner. The Association shall not be obligated to release the Assessment Lien until all delinquent Assessments, late charges, interest, lien recording fees, reasonable collection costs and reasonable attorneys’ fees have been paid in full. The Owner shall be notified in writing of the Association’s intent to seek payment of attorneys’ fees and court costs in accordance with §47F-3-116(el) of the Act.

(d) The Association shall have the right, at its option, to enforce collection of any delinquent Assessments together with late charges, interest, lien recording fees, reasonable collection costs, reasonable attorneys’ fees and any other sums due to the Association in any manner allowed by law including, but not limited to, (i) bringing an action at law against the Owner personally obligated to pay the delinquent Assessment Lien securing the delinquent Assessments or (ii) bringing an action to foreclose the Assessment Lien against the Lot in the manner set forth in §47F-3-116 of the Act. The Association shall have the power to bid in at any foreclosure sale and to purchase, acquire, hold, lease, mortgage and convey any and all Lots purchased at such sale.

8.7. Date of Commencement of Assessments. The obligation to pay assessments shall commence as to each Lot on the date on which the Lot is conveyed to a Person other than the Declarant or the month in which the Board first determines a budget and levies assessments pursuant to this Article, whichever is later. The first annual General Assessment levied on each Lot shall be adjusted according to the number of days remaining in the fiscal year at the time assessments commence on the Lot.